Case study deliverables:
- Details of proposed products to be launched.
- Costing details for each individual material.
- Target audience.
- A detailed budget for the product line with reasoning for each allocated amount.
The Launch
Nestlé is a Swiss multinational drink and food processing Conglomerate Corporation headquartered in Vaud, Switzerland. It is the world's largest food company, measured by revenues and other metrics, since 2014. For over a century now, Nestle is a partner in India's growth. It has built an extraordinary trust between relationships and obligations with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people, including farmers, suppliers of packaging materials, services, and other goods. NESTLÉ India produces products of accurately international quality under globally famous brand names such as NESCAFÉ, MAGGI, MILKY BAR, and many more. The company has also familiarized products of regular consumption and use such as NESTLÉ Milk, NESTLÉ Dahi, and NESTLÉ Jeera Raita in recent years.
Now Nestlé is planning to expand their wings. Hence, the Company is planning to launch few pre-packed meals (bread). Here is a short report regarding the same.
DETAILS OF THE PROPOSED PRODUCT TO BE LAUNCHED
Bread ( a pre-packed meal )
Bread is an essential food that is prepared from a dough of flour and water, generally via baking. It has been a noticeable food in large parts of the world throughout recorded history. It is one of the oldest artificial foodstuffs, having been of substantial position since the beginning of farming. Bread plays an essential role in sacred rituals and secular culture.
COSTING DETAILS FOR EACH INDIVIDUAL MATERIAL
The ingredients included to prepare bread are White bread flour, water, skimmed milk powder, sunflower oil, sugar, salt, and yeast. Following is the table briefing ingredients, several units, and the cost of each element (in Rupees).
INGREDIENT | IN UNITS AS SOLD | PRICE (in Rupees) |
Water | 1.125 cups | - |
Skimmed milk powder | 22 grams | 3.42 |
Sunflower oil | 37 ml | 1.37 |
Sugar | 26 grams | 0.62 |
Salt | 10 grams | 0.13 |
White bread flour | 495 grams | 8.41 |
Yeast | 4 grams | 1.56 |
Total | - | 15.51 |
Amortized bread maker cost | - | 2.33 |
Total Price per loaf | - | 17.84 |
As mentioned in the above table, the production cost estimated is Rs15.51, amortized bread maker cost is Rs2.33. Hence the total amount spent to make a loaf of bread is Rs17.84.
If the Company sells a loaf of bread for Rs30, then the profit made out of a loaf of bread is Rs12.16
TARGET AUDIENCE
Bakers delight has no specific age or gender demographic that they demand. However, they target those in the medium-upper socio-demographics, which is a mass market. Due to this demographic, and bread being such an essential product, they can maximize profits by not offering the cheapest alternative and competing with local and large name food stores, but appealing as a classy yet necessary business store. It might be hard to profit in the bakery business without having a unique and high-quality product. The most significant advantage of a timely promotion is to turn a random buyer into a regular customer. Around 18 to 24-year-olds eat the most bread out of all adult age groups; Nestlé might find it significant to focus their marketing exertions on older subclasses of the population, such as those over age 35.
Hence, a question arises, How to Market Bread to People over 35?
Tap Into Social Media
Here is a solution, Retail Bakers notes that with participation in social media growth for the age 35 to 54 set, and more than half of those 35-to-44 on social networks, marketing via these online networks is crucial to reach these segments. Some bakery promotion ideas, such as campaigns on social media, don't require a significant investment but still work well to raise people's awareness of the brand. This method is beneficial if we plan on opening new locations or franchising the business shortly. In order to share beautiful pictures of the products, interior design, and team, Instagram is the perfect platform.
DETAILED BUDGET FOR A PRODUCT LINE
As mentioned in the allocation details (refer to the table on page 2), the production cost estimated is Rs15.51, amortized bread maker cost is Rs2.33. Hence the total amount spent to make a loaf of bread is Rs17.84. If the Company sells a loaf of bread for Rs30, then the profit made out of a loaf of bread is Rs12.16
If the bread is sold in a metropolitan city with an estimated population of 20,00,000, the following table helps estimate the production and profit.
No. of loaves prepared for a month | Total production Cost (Rs17.84 per loaf) | The amount we get when sold for Rs30 | Total profit (Rs12.16 per loaf if sold for Rs30) |
5,00,000 | 89,20,000 | 1,50,00,000 | 60,80,000 |
7,50,000 | 1,33,80,000 | 2,25,00,000 | 91,20,000 |
10,00,000 | 1,78,40,000 | 3,00,00,000 | 12,16,000 |
15,00,000 | 2,67,60,000 | 4,50,00,000 | 1,82,40,000 |
20,00,000 | 3,56,80,000 | 6,00,00,000 | 3,20,00,000 |
I hope the Company will implement these strategies to accomplish the goals. The above information is simplified and is estimated.
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