In the beginning, in a place just off the road to Constitución, the well-known fresh San Francisco de Loncomilla cheeses were sold. But after a little while and having fresh cream, in order to expand the offer of the premises, the foray into ice cream of different presentations began, the Premium type, Mono flavor and then the different traditional pastry desserts, each one listed by its characteristic flavors, from 1 to 12 and No. 13 which corresponded to the Suspiro Limeño Ice Cream Dessert, a product with a well-known name and in the mind of every housewife.
The purpose of this work is to Position the Product, Ice Cream Dessert, in the Chilean Market. Using the Strategic Marketing Plan, an important tool for its development.
The company has developed an ice cream dessert (Suspiro Lima), which will be a star product, (1-liter family ice cream) for which the company itself will be launched in the Chilean market, and oriented to the supermarket customer, very logistical support important for your launch.
The Strengths, Opportunities, Weaknesses and Threats of this company have been analyzed and the national market is proposed as a penetration strategy, through supermarkets and geographically segmenting it, obtaining greater coverage, cost savings in transfers etc., whose final customer, are the housewives. and as a positioning strategy for the product, its quality attributes, flavors, packaging for family consumption, promoting an image of a national product from the south.
Introduction
According to the International Dairy Products Association, the statistics of world consumption of ice cream are (liters per year / inhabitant): New Zealand (26.3), United States (24.5), Canada (17.8), Australia (17, 8), Switzerland (14.4), Sweden (14.2), Finland (13.9), Denmark (9.2), Italy (8.2), Chile (6.3), France (5, 4), Argentina (4.0), Germany (3.8), China (1.8), Peru (1.3). In other words, in Latin America, Chile is one of the largest consumers of this product. (Diario el mercurio 2008) Although many think that due to the crisis their consumption decreases, the alternative for the consumer is to choose within the market, the products that meet the most relevant conditions at this time, price, taste and product quality, The alternative to this is the Loncomilla Ice Cream Dessert.
In total, and according to a report by the international consultancy Euro monitor, between 2003 and 2008, the Chilean ice cream industry has had a growth of 56.6%, reaching US $ 535 million in 2008, about US $ 33 million more than past year.
Given this current situation in the country, the Chilean market for the Loncomilla Company is an alternative for the emergence or real Positioning of its products, for which it is necessary that we carry out a Strategic Marketing Plan, in order to Position the Product, Dessert Loncomilla ice cream (1 liter Lima sigh) in this market.
The present work, making use of the basic formats of the strategic plan, consists of several chapters which we list as follows.
Chapter 1 Analysis of the situation (Diagnosis).
Chapter 2 Marketing Objectives.
Chapter 3 Positioning and differential advantage.
Chapter 4 Target market and market demand
Chapter 5 Marketing mix.
Chapter 6 Evaluation of results or control.
Chapter 7 Conclusions.
Development of the topic
Chapter 1
Situation Analysis (Diagnosis)
In this part we will include a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats).
What is the Strength of the Company?
Making an internal analysis of the Company, we can conclude that its strength corresponds to the production sector, as they are producers of the main component of ice cream, which is milk, which intervenes in the manufacture of this and therefore affects the price, main comparative factor for its launch.
What is the Opportunity of the Company?
The opportunity has to do with 3 important points, one of the first is that Chile is the main consumer of ice cream in Latin America (more than US $ 500 million during 2008) and that is an opportunity for the company to position its products, second, is that in the ice cream market present in supermarkets, there is no stock of the Suspiro Lima flavor, for which it is a competitive advantage at launch, the third and not least is that as a producer, the price of launch should and could be less than the rest of the competition.
Fulfilling 100% with this opportunity, would give us a good profitability in a certain time.
What is the downside?
Performing the internal analysis, we conclude that in order to cover a large production, for the future market, we need to expand the business, that is, expand its infrastructure, since if we want to position ourselves in the Chilean market, we will need the necessary stock to be distributed. and the product is for sale.
What is the Threat?
The force of the environment that could impede the implementation of our strategy is not being able to meet the need of our real consumers (housewife), so we have to be clear that the product reaches the place of location (Chain distribution of cold), for that our best ally, for the fulfillment of our objective are supermarkets.
After the necessary analysis, we can conclude on the following.
- We have to strengthen production, especially the variant, Suspiro Lima by increasing it, in order to have the necessary stock and meet market demand, which may also affect the price. We have to take advantage of the fact that the company is a milk producer, main component in the manufacture of ice cream, and the experience of this in the conservation of dairy and refrigerated products, improve the infrastructure of the company in order to be part of one of the favorites of the end customer, with the Lima sigh flavor, launch flagship product.
Episode 2
Marketing Objectives
At this point the Marketing objectives are included; which, keep a close relationship with the goals and strategies of the entire company.
The objective set from the marketing plan is to position the product in the Chilean market, for this, we have to be a leader, achieve the brand image, grow and be part of the ice cream consumption cake in the national market (US $ 535 million in 2008).
The goal set, according to the objective, to achieve a market share of 22% in 3 years, maintain an annual growth rate of 15%.
Chapter 3
Positioning and Differential Advantage
How will we position the product in the national market?
Our sales proposal for positioning is to highlight the SUSPIRO LIMEÑO dessert, a 1-liter family container, as one of the variants and with the best taste and quality in the market and at a competitive launch price with the rest, through advertising television, at an appropriate time, to comply with the communication plan, in support of the positioning strategy.
How to distinguish ourselves from our competitors?
As we have seen previously, the company's differential advantage is that it is a milk producer, and one of its manufacturing products is artisan ice cream, to this, it adds to further strengthen its differential advantage is to have a variant that is the Suspiro Limeño dessert, a product that is in the mind of the end customer, an attribute that can be recognized anywhere, and that becomes a niche within the market because there are not many competitors.
Chapter 4
Target Market and Market Demand
At this point, the groups of people or organizations to which the company will direct its marketing program are specified.
According to the authors Kotler and Armstrong (Fundamentals of Marketing), Target market, "consists of a set of buyers, who have common needs and characteristics that the company or organization decides to serve."
According to this definition, the main target market is the country's supermarkets (Líder, Jumbo, Sta. Isabel), which through them, the product can be established in the market, at the place of commercialization (gondola), list and within the reach of the end customer who is the housewife or supermarket customer.
In other words, our marketing program has to be aimed at a well-defined market segment that is the supermarket customer.
Chapter 5
Marketing Mix
This part includes marketing mix design which is the combination of numerous aspects of the following four elements:
- The product: The product already analyzed, presents its advantages by which the end customer could choose within the market, to satisfy their needs, the Suspiro Lima flavor, a 1-liter family container in addition to the different variants. Distribution: The key to Its distribution of the products, and its launch, is to build loyalty as a direct customer to the existing supermarkets in Chile, they would become our distribution channel towards the customer, who are the ones who will finally evaluate the quality of our products. Promotion to be chosen so that the client buys our products and not that of the competition, is by using existing instruments, such as television advertising, looking for a suitable schedule with a target audience, and online,The latest form of effective communication of product promotion. Price: In order to satisfy the target market, the price of the products is essential, for this, we have and can compete differentially in the market, for the advantage of the company as a producer.
In the future when demand is higher, this price drop will become an expected target return.
Chapter 6
Evaluation of results or control
At this point, a design of the instrument is included that will allow the evaluation and constant control of each operation so that the final result is as close to the strategic marketing plan as possible.
- Sales result: In this part we need to carry out a monthly sales control for each product listed from 1 to 13, especially the last one that corresponds to the Suspiro Lima ice cream dessert, to see the impact of the promotion of the star product, in addition to the rest, which could help us improve the production design. Profitability: Obtained the monthly sale, see the result of the profitability in that month, which would indicate how the business is going, and if the results are unexpected, propose alternatives. different communication campaigns Visitor rates per order Revenue rates per order
Taking this information into account, they will help us to evaluate possible deviations which have to be solved or to carry out the corresponding feedback to investigate the causes that may have produced it and can serve us for later experiences.
Control tools and responsibilities.
- Control of the annual plan: The one that has to be carried out by senior management, whose purpose of control will be if the planned results are met, using as tools the monthly sale analysis, market share, cost-sale operating result, and the analysis Profitability control: Performed by the controller, to analyze whether money is earned or lost, taking into account the profitability data by territory, production, etc. Efficiency control: Performed by the controller line management, to evaluate and take advantage of the efficiency and repercussion of commercial expenses, taking into account the data of sales efficiency, sales promotion and distribution Strategic control: Carried out by senior management, to know if the company is taking advantage of the opportunities regarding the products,distribution channels etc. Using as control tools the coding instruments of commercial efficiency, commercial audit, etc.
Chapter 7
Conclusions
1.-In Latin America, Chile is one of the largest consumers. In total, and according to a report by the international consultancy Euro monitor, between 2003 and 2008, the Chilean ice cream industry has had a growth of 56.6%, reaching US $ 535 million in 2008, about US $ 33 million more than past year.
Given this current situation in the country, the Chilean market for the Loncomilla Company is an alternative of emergence or real positioning and the strategic plan to position it is fundamental.
2.-One of the strategic factors to be able to comply with the positioning is that we have to improve the infrastructure to strengthen production, especially the variant, Suspiro Lima, increasing it, to have the necessary stock and meet the market demand, which It may also have an impact on the price, also taking advantage of the fact that the company is a producer of milk, the main component in the manufacture of ice cream and its experience in the preservation of dairy and refrigerated products.
3.-All of the above mentioned is important to grow and be part of the ice cream consumption cake in the domestic market (US $ 535 million in 2008).
The goal set, according to the objective, to achieve a market share of 22% in 3 years, maintain an annual growth rate of 15%.
4.-To position the product in the national market, television advertising at the appropriate time is important, as well as communication over the internet with related products, highlighting the Suspiro Lima ice cream dessert, a product that is on the mind of every lover of House.
We must take advantage of being milk products, which is important for the manufacture of artisan ice cream.
5.- The beginning of the strategic plan must result in the negotiation with the country's supermarkets (Líder, Jumbo, Sta. Isabel), which through them will be able to establish the promotional product in the market. This will make our marketing program be directed to a market segment that is the supermarket customer (housewife), who will finally evaluate our work as a result of this operation, which we hope to fulfill.
recommendations
1.-In order to position Loncomilla Ice Cream Dessert in the Chilean market, it is necessary to have a strategic marketing plan and be supervised by senior management, in addition to having to be evaluated in a certain time to meet the objectives set and be corrected if applicable.
2.-The actors involved in the plan must draw up plans, policies, actions and goals that must be met in order to achieve the objective that is the positioning of the product in the Chilean market.
3.-Organize, train and advise all the production personnel and that they get involved in the great project that will require a lot of their collaboration to comply with the market.
In addition, involve the administrative personnel in aspects of management, administration and financing until export, if one day it is necessary.
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