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UNIKAI is one of the largest and most popularly known companies in the production of dairy foods as far as the Arabian Peninsula is considered. UNIKAI sells a wide range of products in the domestic as well as international markets. It was founded and started by the Ruler of Dubai in 1977, so that the people of the country can get milk products in abundance and has its main hub at Oman. UNIKAI has set a bench mark for quality and loyal customer base since its establishment and maintains its reputation through the number of years of its existence. The goal of the company is to provide the products with highest quality at prices that can be afforded by most of the people(UNIKAI, 2014).
The company strives to provide customer satisfaction through its products and makes sure that the products live up to its name and the processes are aligned in that manner. Some of the most prominent product lines that the company promotes itself in are the dairy and food products. The processes that are used to manufacture the products at UNIKAI are monitored by very strict protocols in a computerized manner so that the best quality can be ensured.
UNIKAI has its presence in around 16 countries in the MENA region and considers these countries as the primary market for their products. Thus, the products that are sold in these countries are ensured for good quality and sustainability through rigorous quality checks and a flawless distribution system. Apart from the MENA region, the company has presence in various countries globally, such as Madagascar, Pakistan, Singapore, Egypt, Libya, Brunei, Angola and Nigeria among a few others(UNIKAI, 2014).
The marketing objectives for the marketing of UNIKAI are designed in a way that would serve the present and near future marketing and promotional needs of the company in an effective manner. The effectiveness would be measure by the increase that these strategies can bring in the present sales and revenues of the company as opposed to the investment it makes in the process. The marketing objectives can be predefined on the basis of the expected sales, revenue and profits as compared to the current figures.
We can represent it as follows:
| Year | Revenues (Million AED) | Sales (Million AED) | Profit (million) |
| 2012 | 291.60 | 217.3 | -17 |
| 2013 | 310.00 | 238.8 | -22.5 |
| 2014 | 350.00 | 290.5 | 5 |
| 2015 | 400.25 | 310.2 | 10.7 |
| 2016 | 430.45 | 325.6 | 12.5 |
(UNIKAI, 2013)
The profits as well as revenues have consistently been affected adversely in the past few years, even though the sales have been high. This could be attributed to the slowing down of new customers using UNIKAI considering the very scarce amount of promotional activities that the company does. It shows that the sustainability of the company has been negatively affected with losses reported at -17 million AED and -22.5 million AED in the years 2012 and 2013 respectively. However, once the planned marketing plan is executed, UNIKAI is expected to recover from the current state of loss and go at least up to a minimal amount of profit of 5 million AED. Furthermore, the sales are also expected to go higher in order to generate more revenues as well as to increase the profit that is earned by the company in the planned year.
B. MARKET SIZE
The current market situation is such that the supply is barely able to meet the demand as the consumption of dairy products in the GCC countries grew by 50% in the years between 2007 and 2012. Moreover, the industry witnesses an average annual growth of 9% every year in the past decade, with a growth of 7.7% in the year 2012. This shows a lot of opportunities for the present and newer dairy companies in the industry(Chibbar, 2013).The estimated sales for the year 2014 could be considered as about 10% with respect to the marketing plan for the planned year.
| Sales Forecast (All units are in AED) | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Sales | |||||
| Medical services | 484,440 | 660,600 | 990,900 | 1,486,350 | 2,229,525 |
| Help desk services | 253,230 | 440,400 | 550,500 | 825,750 | 1,238,625 |
| Short-term contracts | 159,645 | 238,550 | 352,320 | 528,480 | 792,720 |
| Others | 122,945 | 212,860 | 253,230 | 379,845 | 569,768 |
| Total Sales | 1,020,260 | 1,552,410 | 2,146,950 | 3,220,425 | 4,830,638 |
The major market for the UNIKAI products can be observed in the MENA region as the company has its main hub in Oman and another Business Plant in United Arab Emirates. The current market growth of dairy products in the MENA region has been intrepid and consistently growing in the recent years. The geographical location of Oman and United Arab Emirates is actually favorable for the company as both the regions have well-facilitated ports that can support international and domestic distribution operations in a better manner.
Major modes of transportation in the region consist of all the three major modes through surface, air and rail. There are a number of transportation agencies that specialize in the logistic operations of companies. In addition to these, there also are certain companies that prefer to conduct their distribution and logistical operations in-house in order to optimize the input costs and ensure efficiency. Major transports in the region are used for the oil and gas transportation and distribution.
The consumption of dairy products in the Middle East has increased to a large extent and Saudi Arabia is supposed to be the highest consumer of Dairy Products in the Middle Eastern Region. In terms of Dairy Products, it has been observed that the dairy industry has grown majorly because of the increase in cheese consumption. People in the middle-eastern region tend to believe in having healthy and lavish food habits in addition to the fact that the local and traditional cuisines make use of a lot of dairy products such as milk, butter and cream. Furthermore, the locals tend to spend lavishly when it comes to food products which can be attributed as another reason for the growth in the dairy industry.
D. Market Segmentation, Target Marketing and Product Positioning
D. Market Segmentation, Target Marketing and Product Positioning
It is important to define the three major aspects of the marketing strategy: market segmentation, target marketing and product positioning. In terms of UNIKAI, they are as follows:
The segmentation of market is done taking into consideration, three major variables such as demographic, behavioral and geographical at UNIKAI. In terms of demographics, the major segments are made considering the income class, household size and social status. This would be related to providing the customers the products on affordable prices as well as satisfying the customer needs effectively.
The behavioral variable is considered to derive the customers’ needs and wants and their attitude towards the products.
Furthermore, geographical element is considered while dividing the domestic and international operations, especially considering that the company majorly focuses on the domestic market in the Middle East(UNIKAI, 2014).
The target market of UNIKAI would be the major population of people who drink milk in the Middle Eastern region, which would include almost every age group. Furthermore, various products have different target markets based on the preferences of the customers such as low-fat milk and foods for the health-conscious people, ice-cream and their flavors based on the preferences of children as well as adults. Affluent households that prefer using a well-known and trustworthy brand for their food requirements as well as the changing modernized population that prefers quality and healthy desserts are also influential target markets. Products such as yogurts, flavored milk and other such fat-free products appeal to the health-conscious consumer group, while other products such as Lassi/ Laban, Ice-Creams, Fresh Milk, Fresh Cream, etc. are essential for the other target markets(UNIKAI, 2014).
The positioning of the products are done keeping in mind, the segmentations that have been loyal and profitable for the company. In that manner, the positioning of the products is done in such a way that the quality provided remains the best. An additional factor that adds to the positioning strategy is the pricing kept for the products. In that regard, the products of UNIKAI are positioned as “best quality at an affordable price”.
E. Comparison with the Competitor’s Products
The major competitors for UNIKAI in the Middle Eastern region are Al Ain Dairy and Al Rawabi, which are the most preferred brands for milk products in the UAE as well as the MENA region.
AL AIN DAIRY
Al Ain Dairy Company is one of the largest producers and exporters of milk in the UAE. It was established by the Ruler of Dubai, in 1981 with the intention of supplying milk in the country. The dairy caters to more than 12000 families in the Emirates. Al Ain brings the traditions and values as the asset while serving its customers, which also acts as a major advantage. The best quality that the company possesses over UNIKAI is the major investments it puts into R&D for its products and its major products are ice-creams, cow milk, camel milk, juices and above all the innovative Grilloumi. Grilloumi is a Greek version of grilled cheese made with unique ingredients making it one of the favorites among Emiratis(Al Ain Dairy, 2014). The products are made keeping in mind, the health of the customers. Al Ain Dairy has efficient distribution channels through which the company makes sure that the products reach customers effectively.
AL RAWABI
Al Rawabi is one of the leading companies in the UAE for milk products and has earned its name through the various ways in which it carries out its operations. In that regard, some of the major categories are Emirates Modern Poultry and the Green Products that the company produces and distributes. The major products that the company produces are Yoghurts, Laban, Juices, functional milk and regular milk. Keeping the products very basic, Al Rawabi has very rapidly grown into a successful company through its innovative strategies and unique products that serves as a definite competitive advantage over the products by UNIKAI(Al Rawabi, 2014). Whenever, there are multiple products to be managed, the company has to ensure quality and efficiency as well as the distribution channels has to be efficient.
F. THE PRODUCT
The products related to the UNIKAI are very much health based which makes it possible for the customers to choose from a wide range of user-friendly products. In this regard, the biggest innovation in the company is in the form of the long-life milk. The company adds special ingredients and uses rigorous processes to ensure that the milk that is manufactured lasts longer than the longevity of the usual milk. This particular product came along after a hefty investment by the company on R&D, which shows the company’s desire to be unique(UNIKAI, 2014).
In the same way, another interesting product innovation could be in the form of a long-life ice-cream made with the same milk. This would make the people prefer UNIKAI for buying ice-creams as it would have a longer life-span.
There are a number of costs and hurdles whenever a new product is launched or an existing product is to be improved. In that regard, selling this particular product in a market that already has so many existing replacements is a bit tricky and would not be possible without appropriate marketing. Moreover, launching a new product would have a great effect on:
- Packaging
- Positioning
- Containerization
The packaging of the product would be done according to the flavor of the ice-cream in the package. This would also depend on the price of the ice-cream and the volume. This is done so that every class would be able to afford the ice-creams. The cheaper product would have the relative packaging in order to ensure lesser costs in production and distribution. Furthermore, these products would be positioned in a way that would be competitive with ice-creams of any cost with the highest quality, regardless of the costs and flavor. The cheaper packaging would include bars, lollies and cups, while the higher packaging would consist of Tubs and larger packages.
The labeling and marking of the products would adhere to the regulations implied by the food regulation department of the countries that the company would be catering to. The major countries would be Oman and the UAE. The containerization process in dairy industries is vital in preserving the food products that are circulated to the customers. In that regard, UNIKAI would make sure that the containers are well-maintained and have enough capacity and well-equipped to maintain and preserve the long-lasting food products by using the same technology used for the long-lasting presently. This would eliminate any extra costs that would incur for the containerization of these products.
G. PROMOTION MIX
The promotional strategies that would be introduced after the introduction of this product in the market would use the same kind of tactics that are used for promoting the new products in an existing market in the product-market grid.
1. ADVERTISING
The objective of advertising this product would be to make it attractive for the people who tend to store the ice-creams for a longer period of time and use it from time-to-time. Such people would be getting a lot more convenience by having to take lesser number of trips to the market to buy ice-creams.
The media mix in this aspect would consist of newspaper, television and internet ads. The new product would be promoted highlighting the importance of the time that the people can save out of the various trips that they take for the ice-creams. However, the maximum amount of promotional campaigns would be carried out through television and newspapers as well as periodicals.
The message that would be promoted through the advertisement campaigns would be that people could reduce the time that is being wasted and the various things that the users can do otherwise. Moreover, the message that has to be provided to the customers also has to include the reliability and the efficiency that the company strives to bring in order to fulfill the needs of the customers.
| Advertisement Activities | Costs (Million AED) |
| Newspaper Advertising | 730,567 |
| Television Advertising | 900,000 |
| Internet Advertising | 700,000 |
| Total Costs | 23,05677 |
| Advertisement Activities | Costs (Million AED) |
| Newspaper Advertising | 730,567 |
| Television Advertising | 900,000 |
| Internet Advertising | 700,000 |
| Total Costs | 23,05677 |
The total cost that would be spent on the advertisements would be around 2.3 million AED which would include the expenses for advertisements in newspapers, television as well as the internet.
2. SALES PROMOTIONS
The sales promotion is would be done with the intention of fulfilling the objective of making the new product visible and favorable to the customers. This would be accomplished using various tactics like offers and coupons that would provide the customers with options to access the product at cheaper rates.
The coupons provided to the customers would be of two types. One that would provide the product to the customers on cheaper rates and the other one which provides discount offers and promoting more offers that would encourage customers to buy the product more in number.
The total cost that would be incurred in order to carry out sales promotions would be 494522 AED. This would be inclusive of all the direct and indirect costs that would be encountered in the process.
Other promotional methods in terms of personal sellingwould include stalls and kiosks in supermarkets promoting the products as well as free samples of smaller packages of the products along with the purchase of the other UNIKAI products.
H. DISTRIBUTION
Distribution plays a very important role in making the procurement and selling processes simpler. Furthermore, there also are processes that are related to making relationship between customers and companies stronger by making them efficient.
The port that is used for distribution by UNIKAI is the Dubai port and the port at Oman. This is set considering the advantage that both the companies have in terms of this particular field. The origin port and the destination port won’t be different in this case as UNIKAI has its main plant in the United Arab Emirates. Furthermore, there also are a number of other modes that are used for logistics.
I. PRICE DETERMINATION
| Expenses | Amount (AED) |
| Transportation Costs | 98,7250 |
| Handling Expenses | 5270120 |
| Customs Duties | 10000 |
| Wholesale and Retail Mark-ups and discounts | 10% |
| Company’s Gross Margin | 381424935 |
| Retail Price (1 cup) | 15 |
The pricing strategy that is chosen would be penetration as the largest number of users that use UNIKAI products are middle-class users. There are a number of drawbacks that hold true for the skimming strategy as far as UNIKAI is concerned. There is no scope for the sales of the product if it sis priced high in terms of the usual rates that UNIKAI products have. Thus, the penetration strategy would be the best suitable pricing strategy.
III. PRO FORMA FINANCIAL STATEMENTS
A. MARKETING BUDGET
| Start-up (All units are in AED) | |
| Requirements | |
| Start-up Expenses | |
| Legal | 1317530 |
| Printing Expenses | 658765 |
| Utilities | 131753 |
| Technical Help | 1976295 |
| Bookkeeping and Accounting fees | 1317530 |
| Equipment expenses | 5270120 |
| Advertisements | 2305677.5 |
| Public Relations | 779030 |
| Direct marketing | 825700 |
| Travel Costs | 987250 |
| Sales Promotion | 494522.5 |
| Others | 5270120 |
| Total Requirements | 21334293 |
B. PROFIT AND LOSS STATEMENT
| Pro Forma Profit and Loss (All Units are in AED) | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Sales | 183,136,670 | 278,657,595 | 385,377,525 | 450987456 | 524568759 |
| Direct Cost of Sales | - | - | - | - | - |
| Other Costs of Sales | 2,832,690 | 3,952,590 | 3,952,590 | 4125478 | 4501450 |
| Total Cost of Sales | 2,832,690 | 3,952,590 | 3,952,590 | 4725875 | 422785 |
| Gross Margin | 180,303,981 | 274,705,005 | 381,424,935 | 446,261,581 | 524,145,974 |
| Gross Margin % | 98.45% | 98.58% | 98.97% | 98.95% | 99.92% |
| Payroll | 85,026,174 | 72,613,558 | 62,655,448 | 70,458,754 | 75,843,658 |
| Sales and Marketing and Other Expenses | 11,857,770 | 6,587,650 | 6,587,650 | 7585658 | 7585658 |
| Depreciation | - | - | 1,646,913 | 1646913 | 1756879 |
| Rent | 11,857,770 | 11,857,770 | 11,857,770 | 11,857,770 | 11,857,770 |
| Utilities | 4,743,108 | 5,270,120 | 5,928,885 | 5778468 | 657498 |
| Insurance | 8,695,698 | 9,222,710 | 9,881,475 | 10445785 | 11457485 |
| Payroll Taxes | 20,657,578 | 30,731,477 | 35,474,585 | 36457845 | 37458785 |
| Travel | 7,905,180 | 5,270,120 | 2,635,060 | 2985745 | 3587548 |
| Other | 11,857,770 | 9,881,475 | 9,881,475 | 10245785 | 10245785 |
| Total Operating Expenses | 162,601,048 | 151,434,880 | 146,549,261 | 157,462,723 | 160,451,066 |
| Profit Before Interest and Taxes | 17,702,933 | 123,270,125 | 234,875,675 | 288,798,858 | 363,694,908 |
| Interest Expense | 5,390,744 | 6,192,391 | 5,994,762 | 6245785 | 7547685 |
| Taxes Incurred | 0 | 0 | 16,512,026 | 16,512,026 | 17584569 |
| Net Profit | 12,312,189 | 117,077,734 | 212,368,888 | 266,041,048 | 338,562,654 |
| Net Profit/Sales | 6.72% | 42.01% | 55.11% | 58.99% | 64.54% |
IV. RESOURCE REQUIREMENTS
FINANCE
The total financial resources that would pre-requisite to this particular plan would include the expenses of launching the new product, the cost of marketing it as well as the other miscellaneous expenses that would be surrounding the main expenses. As a consequence to this marketing plan and its execution, the profit margin is likely to go up and look onto the positive side as opposed to the current situation where there is a negative effect on the financial stability and profits.
PERSONNEL
The company was incurring loss in the years 2012 and 2013, which also was a result of the prolonged increase in the manpower and employees of the company. It was also understood that the expenses that were incurred in paying the salaries of the senior management took away a lot of financial resources from the company. This was taken into consideration while making the marketing plan and lay-offs were made possible with a few additions to the marketing department.
| Personnel Plan (All units are in AED) | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Senior Management | 26,248,975 | 21,985,345 | 16,715,742 | 18,426,794 | 20,457,654 |
| Marketing Department | 14,935,060 | 15,207,781 | 15,463,661 | 19,995,939 | 20922074 |
| Operational Department | 24,587,465 | 17,855,647 | 14,997,524 | 15,478,599 | 16,875,478 |
| Human Resources | 19,254,674 | 17,564,785 | 15,478,521 | 16,557,422 | 17,588,452 |
| Total People | 806 | 976 | 1100 | 956 | 1012 |
| Total Payroll | 85,026,174 | 72,613,558 | 62,655,448 | 70,458,754 | 75,843,658 |
PRODUCTION CAPACITY
There are a number of opportunities that can be made use of, very effectively as long as the production capacity of any company is flexible according to the demand and the increase in manufacturing caused due to any reason. In that regard, one of the key aspects is to makes sure that all the equipment s and machinery are maintained and well-equipped to handle in the increase of production and to manage the overall capacity of production. It is also important that the numbers of units that are produced are properly tuned with the demand and supply. This particular measure would also be dependent on the capacity of the manpower that would be working in the production department of the company. For this particular marketing plan, there would be a considerable increase in the production capacity and in the management of the new product and its marketing and sales.
V. EXECUTIVE SUMMAR
This marketing plan is a centered on UNIKAI which is a leading dairy company in the Arabian Peninsula. It is an analytical marketing study on the company including the critical aspects of the company. The initial portions are regarding the study of the market conditions. These sections also cover a number of aspects that are related to the internal processes as well as their impact on the external environment of the company. The change in the promotional strategy is marked by the improvements made through innovation and the various changes that would be driven as a consequence of this particular innovation. The new product which is introduced is the long lasting ice-cream based on their existent product which is their long lasting milk. It is followed by the key marketing aspects of UNIKAI like market segmentation a deeper analysis of the product and the distribution of UNIKAI products throughout its channels. The marketing mix of the UNIKAI is also explored with a focus on advertizing and sales. Several financial aspects of UNIKAI are also analyzed in detail including the budget and critical financial statements.
- Sales and Profit Projections
| Year | Revenues (Million AED) | Sales (Million AED) | Profit (million) |
| 2012 | 291.60 | 217.3 | -17 |
| 2013 | 310.00 | 238.8 | -22.5 |
| 2014 | 350.00 | 290.5 | 5 |
| 2015 | 400.25 | 310.2 | 10.7 |
| 2016 | 430.45 | 325.6 | 12.5 |
- Pro Forma Profit and Loss Statement
| Pro Forma Profit and Loss (All Units are in AED) | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Sales | 183,136,670 | 278,657,595 | 385,377,525 | 450987456 | 524568759 |
| Direct Cost of Sales | - | - | - | - | - |
| Other Costs of Sales | 2,832,690 | 3,952,590 | 3,952,590 | 4125478 | 4501450 |
| Total Cost of Sales | 2,832,690 | 3,952,590 | 3,952,590 | 4725875 | 422785 |
| Gross Margin | 180,303,981 | 274,705,005 | 381,424,935 | 446,261,581 | 524,145,974 |
| Gross Margin % | 98.45% | 98.58% | 98.97% | 98.95% | 99.92% |
| Payroll | 85,026,174 | 72,613,558 | 62,655,448 | 70,458,754 | 75,843,658 |
| Sales and Marketing and Other Expenses | 11,857,770 | 6,587,650 | 6,587,650 | 7585658 | 7585658 |
| Depreciation | - | - | 1,646,913 | 1646913 | 1756879 |
| Rent | 11,857,770 | 11,857,770 | 11,857,770 | 11,857,770 | 11,857,770 |
| Utilities | 4,743,108 | 5,270,120 | 5,928,885 | 5778468 | 657498 |
| Insurance | 8,695,698 | 9,222,710 | 9,881,475 | 10445785 | 11457485 |
| Payroll Taxes | 20,657,578 | 30,731,477 | 35,474,585 | 36457845 | 37458785 |
| Travel | 7,905,180 | 5,270,120 | 2,635,060 | 2985745 | 3587548 |
| Other | 11,857,770 | 9,881,475 | 9,881,475 | 10245785 | 10245785 |
| Total Operating Expenses | 162,601,048 | 151,434,880 | 146,549,261 | 157,462,723 | 160,451,066 |
| Profit Before Interest and Taxes | 17,702,933 | 123,270,125 | 234,875,675 | 288,798,858 | 363,694,908 |
| Interest Expense | 5,390,744 | 6,192,391 | 5,994,762 | 6245785 | 7547685 |
| Taxes Incurred | 0 | 0 | 16,512,026 | 16,512,026 | 17584569 |
| Net Profit | 12,312,189 | 117,077,734 | 212,368,888 | 266,041,048 | 338,562,654 |
| Net Profit/Sales | 6.72% | 42.01% | 55.11% | 58.99% | 64.54% |
- Marketing Budget
| Start-up (All units are in AED) | ||
| Requirements | ||
| Start-up Expenses | ||
| Legal | 7,340 | 1317530 |
| Printing Expenses | 3,670 | 658765 |
| Utilities | 734 | 131753 |
| Technical Help | 11,010 | 1976295 |
| Bookkeeping and Accounting fees | 7,340 | 1317530 |
| Equipment expenses | 29,360 | 5270120 |
| Advertisements | 12,845 | 2305677.5 |
| Public Relations | 4,340 | 779030 |
| Direct marketing | 4,600 | 825700 |
| Travel Costs | 5,500 | 987250 |
| Sales Promotion | 2,755 | 494522.5 |
| Others | 29,360 | 5270120 |
| - | ||
| Total Requirements | 118,854 | 21334293 |
- Advertising Expenses
| Advertisement Activities | Costs (Million AED) |
| Newspaper Advertising | 730,567 |
| Television Advertising | 900,000 |
| Internet Advertising | 700,000 |
| Total Costs | 23,05677 |
| Advertisement Activities | Costs (Million AED) |
| Newspaper Advertising | 730,567 |
| Television Advertising | 900,000 |
| Internet Advertising | 700,000 |
| Total Costs | 23,05677 |
- Personnel Costs
| Personnel Plan (All units are in AED) | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Senior Management | 26,248,975 | 21,985,345 | 16,715,742 | 18,426,794 | 20,457,654 |
| Marketing Department | 14,935,060 | 15,207,781 | 15,463,661 | 19,995,939 | 20922074 |
| Operational Department | 24,587,465 | 17,855,647 | 14,997,524 | 15,478,599 | 16,875,478 |
| Human Resources | 19,254,674 | 17,564,785 | 15,478,521 | 16,557,422 | 17,588,452 |
| Total People | 806 | 976 | 1100 | 956 | 1012 |
| Total Payroll | 85,026,174 | 72,613,558 | 62,655,448 | 70,458,754 | 75,843,658 |
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