Company name:

Punjab farms (PVT) Ltd.

Product name:
Goat Milk

Tag Line:
Nourishing life

We’ve chosen “Goat Milk” to Launch in the Pakistan’s Market as a Dairy

Product, as it’s an untouched or ignored product in the dairy industry of Pakistan.
We have enough potential to carry this product in terms of Goat Population,
productivity and Goat Milk’s Nutrition and according to it Goat milk has more
protein as compared to Cow’s Milk so it will help us to tell people and educate
them that this Milk is much more nutritious as compared to Cow’s Milk.
Executive Summary
As we found this as a niche- market here in this Pakistan that’s why we are
willing to fill this gap by introducing our product. In Pakistan the dairy industry is
lacking this product as we are the 5th largest dairy productive market of the world
that’s why we have the potential to introduce this product and can fill the gap. The
following are many aspects explained which may help to understand the potential
and success factors of this product.
 Goat Milk has never sold in Packed form in Pakistan

 Pakistan dairy industry is the World’s fifth largest industry

 Population of Goat is higher than Cow and Milk production is also

reasonable to call Milk in Collection centers and people are very much
informed about milk Collection centers as in Villages people know that they
have to submit their milk to collection centers or collection Vans to get paid
at their door steps they don’t need to sell each kilogram to customers.

 Population of Pakistan is rising day by day even though Govt. and foreign
companies are trying to control it but in vain.

 Pakistan has enough population and Goat Milk which may used by the
company as companies like Nestle ,Olper’s and others brands have
collection centers where people can sell their cattle’s Milk on good price as
compared to an ordinary customer.

 There are segments available that are health conscious for their children’s
health even though they pay very high charges for Child Specialist Doctors.

 Qualified work force available for this industry.

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Concept Statement:
“This industry is using high technology for quality and cost purposes as we are
offering the tetra pack GOAT Milk so we have to look for Tetra Pack Pakistan
which is the only company of Pakistan who is offering tetra packaging to whole
dairy industry of Pakistan.”
Current Status:
The current status of the business is that there’s no one in our country who has
introduced this goat milk in the packing form therefore we planned this product to
be launched in the packing form. Initially we are trying to outsource the Tetra pack
company to provide us the facility of pasteurizing and packing of the milk as like
many of the company are outsourcing Tetra Pack Company for this purpose
therefore in the long run if it would be feasible in future we will be installing our
own plant of pasteurizing and packing.
Requirements:
The Goat Population in the Pakistan is 53.79 Million its according to 2006 and
now in 2010 it will be more than 60 Million and we don’t get data of 2010 because
census is held after every 10 years.

AS in the following Table which we took from the live stock and dairy
developments website:

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The milk production table clearly shows the potential of the goat milks production
in the market which is according to the census of 1999 and 2000 we can easily
forecast that these days this amount would be doubled by this time and we can
easily buy the goats and rush them to our farms and start the production and then
transport this milk to the Tetra Packaging Company for pasteurizing and packaging
and then we will launch our product in the market.
Competitive advantage:

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Our competitive advantage is our Idea because there is no one in our country who
is offering the Goat Milk as a packed product. There is no company who is
offering Liquid Milk for children there are some brands of Nestle who are offering
Nido, Lectogen, e.t.c but all of these are dealing in powder milk to Mix in Water so
we are offering Goat Milk in liquid form and we are offering it with Ultra-
pasteurized through which we may keep it minimum for 3 to 4 months and more
long time if we keep it refrigerated.

Description of Business:

There are different brands in the industry customer may switch to other but here if
we give different product to customers which is more nutritious to their children
then there are segments in the market which will never take cheaper products to
compromise on their children’s health.

“Different minerals of Goat Milk to justify its difference or better nutrition

from other Milk”
Although the mineral content of goat's milk and cow's milk is generally similar,
goat's milk contains 13 percent more calcium, 25 percent more vitamin B-6, 47
percent more vitamin A, 134 percent more potassium, and three times more niacin.
It is also four times higher in copper. Goat's milk also contains 27 percent more of
the antioxidant selenium than cow's milk. Cow's milk contains five times as much
vitamin B-12 as goat's milk and ten times as much folic acid (12 mcg. in cow's
milk versus 1 mcg. for goat's milk per eight ounces with an RDA of 75-100 mcg.
for children). The fact that goat's milk contains less than ten percent of the amount
of folic acid contained in cow's milk means that it must be supplemented with folic
acid in order to be adequate as a formula or milk substitute for infants and
toddlers, and popular brands of goat's milk may advertise "supplemented with
folic acid" on the carton.

GOAT'S MILK FORMULA VERSUS COMMERCIAL FORMULA FOR

ALLERGIC INFANTS

Parents of babies allergic to cow's milk and other commercial formulas often ask if
it's safe to use goat's milk as an alternative. In theory, goat's milk is less allergenic
and more easily digestible than cow's milk.

Shot term objectives:

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To give awareness to people that Goat Milk is much better or more nutritious to
their infants ,toddlers and children from 3 to 10 years, its easy to digest and fully
nutritious with vitamin D and contains all natural ingredients.

Long term objectives:

Targeting more segments of Market such as people of age above 40 and Old to
give them more Nutritious Milk as Compare to cow/Buffalo and that will be of
Goat’s Milk , main feature of that goat Milk will be Low Fat and easy to digest.
Target Market:

Our target Market is Infants, toddlers and children of age 3 to 10 years.

Marketing Plan

STM (Segment, targeting, Positioning)

Segment:

Geographically:

In the beginning we are targeting the major cities of Pakistan as Karachi, Lahore,
Islamabad, Sialkot, and Gujranwala.

Demographic:

o Age :infants ,toddlers and children of growing age from 3 to 10 years

o Gender :Male, Female

o Family life cycle :Married

o Income: Rs.25,000/month and above

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 o From middle class to upper class

o Nationality: Pakistan

Psychographic:

o Social class : Middle class, Upper class and elite class

Behavioral:

o Benefits: Quality, Taste, Health conscious

o User status: First time user

o Loyalty Status: Strong

o Purchase preferences: Purchase from large retail stores such as Al-

fateh store, Akbari store ,Metro and Makro.

Target Market:

Our target Market is Infants ,toddlers and children of age 3 to 10 years

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 Market Analysis to chose Segment

 market definition

 0–14 years: 42% (male 33,293,428; female 31,434,314)

 15–64 years: 54.9% (male 48,214,298; female 46,062,933)
 65 years and over: 4.1% (male 3,256,065; female 3,542,522) (2006 est.)

 0-14 years: 36.7% (male 33,037,943/female 31,092,572)

 15-64 years: 59.1% (male 53,658,173/female 49,500,786)
 65 years and over: 4.2% (male 3,495,350/female 3,793,734) (2009 est.)

 Fertility

 Total fertility rate: 4.00 children born/woman (2006 est.)

 Total fertility rate: 3.77 children born/woman (2007 est.)
 Total fertility rate: 3.58 children born/woman (2008 est.)
 Total fertility rate: 3.43 children born/woman (2009 est.)

 Health
Public expenditure was at 0.4 % of the GDP in 2004, whereas private expenditure was at 1.8 %. Health expenditure
per capita was at US$ 48 (PPP) in 2004.There were 74 physicians per 100,000 persons in the early 2000s.Fertility
rate was at 4 births per woman in the early 2000s. Pakistan has a high infant mortality rate of 70 per thousand births.

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 SWOT analysis
Strengths:

 Ultra pasteurized technology which is outsourced by the tetra pack.

 Quality product which has never been offered in Pakistani Market

 Strong Financial position

Weakness:

 New brand in Pakistan

 Strong supply chain network already available of the other milk producing companies.

 Very strong competitors.

 It will take time to develop Network with suppliers and to educate them for Goat Milk

Opportunities:

• Goat Milk has never sold in Packed form in Pakistan

• Pakistan dairy industry is the World’s fifth largest industry

• Population of Goat is higher than Cow and Milk production is also

reasonable to call Milk in Collection centers and people are very much
informed about milk Collection center as in Villages people know that they
have to submit their milk to collection centers or collection Vans to get paid
at their door step they don’t need to sell each kilogram to customers.

• There are segments available who are health conscious for their children’s
health even though they pay very high charges for Child Specialist Doctors.
• Qualified work force available for this industry.

Threats:

o The shortage of milk providing animals is also a threat for entire milk industry.

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 o Poor profitability for farmers

o Lack of contact for farmers to the market mechanism.

o Lack of education among the farmers is making it difficult to change farm and dairy

o management systems.

o Despite the huge volume of milk produced in Pakistan, processors find it hard to procure

o sufficient milk to meet future consumer demand.

o Load shedding is a major problem of all companies because they purchase generator for
the running of their chiller, due to this the companies budget and price of milk increase.

Strategy to reach Target Market

Company will use differentiated marketing strategy to reach the target Market,
apparently children looks like a single segment but it’s a multi segment because child
of 1 year has different need as compare to the child to 3 years, so through this strategy
we would try to tell people what is more nutritious for their children

Competitive Advantage how company will compete

Our competitive advantage is our Idea because there is no one in the our country
who is offering in Goat Milk. There is no company who is offering Liquid Milk for
children there are some brands of Nestle who are offering Nido, Lectogen,All 110

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e.t.c but all of these are dealing in powder milk to Mix in Water so we are offering
Goat Milk in liquid form as well as our company also have Goat in Powder form,
and we are offering it with Ultra-pasteurized through which we may keep it
minimum for 3 to 4 months and more long time if we keep it refrigerated.

“Competitor Analysis (indirect competitor /substitute)”

If we see the dairy industry who are also offering Milk but not Goat Milk are
following and we may also call them as indirect competitors or substitutes but our
Major competitor is Nestle there are some other imported brands use as Milk for
Children but they don’t come directly or not marketed by the parent compant.

This All 110,Nido and Lactogen for children from birth to 10 years

 Nestle

 Olpers

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  Haleeb

 Good Milk

Nestle is Leader in the Child segment of Pakistan’s Dairy industry

Porter’s Five Forces Analysis of Industry

Supplier Power

Supplier Power is analyzed though supplier concentration, importance of volume to supplier, differentiation of
inputs, switching costs of firms in the industry, etcetera. Suppliers are not powerful because there is large
number of suppliers and less number of buyers, Supplier power is low and suppliers are not organized as a
group to influence industry, and here we are talking about specifically villagers, Farmers and other Goat owner
to provide Goat Milk before Ultra pasteurization and Packing.

Bargaining power of customers

Bargaining power of customers is high because there are different brands in the industry customer may switch
to other but here if we give different product to customers which is more nutritious to their children then there
are segments in the market which will never take cheaper product to compromise on their children’s health.

Threat of Potential Entry

Identifying the possibility and probability of new entrants in an industry is critical because they can intrude on
market share and profitability of existing competitors. Economies of scale, product differentiation, capital
requirements, switching costs and government policy all affect the Industry.

Threat of new entrants is low in the industry because of the Market leader nestle who has most of the share of
the industry and if we see whole Dairy industry then we may see strong challengers and competitors as
OLPERS and HALEEB

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Threat of Substitutes

The threat of substitutes entails a consideration of such things as switching costs, buyer inclination to substitute
and the price-performance trade-off of substitutes. Most individuals would like to make a investment with the
purchase of a particular product of an organization. threat of substitute is high but these substitutes some time
claims not to use their product to infants so there is place for new company to target such market which they
deny.

Degree of Competitive Rivalry

Competitive rivalry is low in our targeted segment of the industry because Nestle is the most dominant parent
brand of different child brands in this industry it show Gap to invite some other to operate in this industry
because there are segments in the market who want special care and nutrition for their children they want their
children more strong

Marketing objectives
Shot term objectives:

To give awareness to people that Goat Milk is much better and more nutritious to their infants,
toddlers and children from 3 to 10 years, it’s easy to digest and fully nutritious with vitamin D
and all natural ingredients.

Long term objectives:

Targeting more segments of Market such as people of age above 40 and Old to give them more
Nutritious Milk as Compared to cow/Buffalo and that will be of Goat’s Milk , main feature of
that goat Milk will be Low Fat and easy to digest.

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Marketing Strategy - Price

• Pricing objectives.
• Pricing method (eg.: cost plus, demand based, or competitor indexing)
• pricing strategy (eg.: skimming, or penetration)
• Discounts and Allowances.
• Price zoning at various prices

Marketing Strategy – Product

• Product Mix
• Product Life cycle Management
• New Product development
• Brand Name
• Brand image, and
• Brand Quality

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 Marketing Strategies

Product/Service Definition

A full discussion of each of your products and services is documented here and how each
uniquely meets the needs and wants of your market. What are you selling? What is unique about
it? Why would anyone buy it?

Advertising Strategy

Thus far, your plan has talked about what you need to do. Now your plan must discuss how you
will do it. This section will discuss how you plan to reach and communicate with each of your
market segments and how you will treat each differently. Discuss how you will position your
company based upon your Unique Selling Proposition. Your Unique Selling Proposition is what
you do that is different from anyone else and the single most important reason you are different
from any other company - how you will differentiate yourself from your competition.

Distribution Channels

A full discussion and examination of how you will deliver your products and services to your
customers is constitutes this section. It would be a good idea to understand your customers'
preferred delivery method and try to base your distribution on that model.

Discussion of Sales & Marketing Resources Available

Carefully consider the resources you have available to you as you prepare to execute your plan.
Identify the financial and human resources you will need to translate your marketing plan into a
series of tactical successes. This is the place to fully discuss your sales and marketing
infrastructures and make sure they can support your goals.

Keys to Success/Critical Issues

Strategic Opportunities

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I would like to include a discussion about strategic opportunities in the marketing plans. You
probably will not know the specifics of opportunities that will present themselves in the future,
but you should discuss how you will evaluate strategic opportunities when they arise. Ask
yourself what other markets might present additional growth avenues for your business. How
will you know if opportunities are right for your business? A great way to accomplish this is to
use your company's mission or vision as a guide as to what will define a strategic opportunity
worthy of consideration. You might also discuss ways to actively seek and uncover strategic
opportunities.

8 P's. Examples are:

1. Price - The amount of money needed to buy products

2. Product - The actual product
3. Promotion (advertising)- Getting the product known
4. Placement - Where the product is located
5. People - Represent the business
6. Physical environment - The ambiance, mood, or tone of the environment
7. Process - How do people obtain your product
8. Packaging - How the product will be protected

Financial Analysis
We are three partners which are participating equally in Financing of our business. We are
starting our business with amount Rs. 15, 00,000. Our Startup cost will be 1432777.5
including Goat purchasing, Promotional Campaign, Distribution Cost, Other Expenses etc.
We are purchasing almost 200 Goats each of them will be Rs 5000. So our daily production
of Milk will be 150 to 200(kg). Average packing price of per pack is Rs. 10. The price of
one (kg) Milk pack is Rs. 135, half (kg) Rs.68 and 250 (ml) is Rs. 34.

Sources of Funds
Owner’s Collateral: 1200,000
Home Equity 300,000
Total to be Financed 1,500,000

Start up Expenses
Goat Purchasing Cost 10,00,000
Vehicles Rent to Supply Milk in Packing Industry 2 0,000

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Promotional Campaign 100,000
Worker Salary 35,000
Accountant Salary 15000
Office Furniture 50,000
Rent of Building 50,000
Packing expenses per month 22,222.5
Distribution Cost after Packing Form 45,000
Other Expenses 100,000
Total Startup Cost 14,32,777.5

12-Month Profit and Loss Projection

Expenses Revenues

Sales 36, 00,000

Worker salary 420,000

Accountant Salaries 1 50,000

Utility Bills 120,000

Rent of Building 600,000

Promotional Expense 300,000

Carriage Charges 2,40,000

Distribution Cost 5, 40,000

Total Expenses 2 3,70,000

Profit 12, 30,000

Total 36, 00,000 Total 36,00,000

Cash Flow Statement

Inflow

Sales 36,00,000

Total inflow 36,00,000

Outflow

Goat Purchasing Cost 10,00,000

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Worker salary 420,000

Accountant Salaries 1 50,000

Utility Bills 120,000

Rent of Building 600,000

Promotional Expense 300,000

Office Furniture 50,000

Distribution Cost 5, 40,000

Profit 4,20,000

Total outflow 31,80,000

Opening Day Balance Sheet

Assets

Goats 10,00,000

Furniture 50,000

Cash in Hand 30,000

Net Profit 4,20,000

Liabilities

Capital 15,00,000

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