Introduction

Fonterra is New Zealand’s largest multinational company which founded and

headquartered in Auckland, New Zealand which has almost 15,900 employees. Fonterra
contain rich heritage of dairy expertise and passion. This comes from generations of
producing quality dairy products enjoyed by consumers and consumers in more than 140
countries. Today, it is the world’s leading exporter of dairy products and responsible for
more than 1 third of international trade. The Fonterra are famous with their dairy product
such as Anchor which is also known as Fernleaf which provide good nutrition for
everyone , Anlene which is specially formulated for adult’s optimal bone health and also
Anmum which is design to meet the needs of pregnant and nursing mothers. Besides that,
the other key point products of Fonterra are cheese, yogurt, ice-cream, and also butter.

Fonterra’s strategy was focuses on four areas to meet the challenges and
opportunities in the dairy industry. Firstly, Fonterra always ensure that their products
remain one of the lowest costs, sustainable dairy co-operatives in the world. Besides that,
it also builds trusting partnerships with customers by being a multi-origin supplier, and
builds more valuable relationships through supply chain integration and innovation.
Furthermore, in high growth markets, where it is not practical to use New Zealand milk,
Fonterra will leverage their cow to consumer expertise to take leadership positions using
locally produced milk. Lastly, Fonterra want to makes their products the first choice of
customers and consumers wherever they do business.

Recently, Our company had produced a new product which is an energy bar, BB
BAR. The energy bar is providing a high concentration of carbohydrates, proteins and
fats. BB BAR is made from cereal, whole grain wheat, milk, and nuts. It consist much
nutrition which can provide us with a combination of essential nutrients like fiber,
vitamins and minerals. Whole grain foods play an important diet in our daily life which
was selling at RM2.99 per bar.

Marketing Mix

Marketing mix strategy is a set of controllable tactical marketing tools that firm blends to
produce the response it wants in target market. Marketing mix often called as the 4 Ps-

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Products, Price, Promotion and Place (Distributions). Our company had produced a new
product base on this strategy.

Product

Our company had produced a new product which called BB BAR. It is marketed to
fulfill the consumer wants and needs. It can also call as an energy bar. BB BAR is made
from cereal, whole grain wheat, milk, and nuts. It consist much nutrition which can
provide us with a combination of essential nutrients like fibre, vitamins and minerals.
Whole grain foods play an important diet in our daily life.

BB BARhas been judged by the Health Department which ensures that it is

suitable serve to everyone. BB BAR is considered as a convenience goods and is an
inexpensive item. Consumer would buy frequently, without much conscious thought.
Compared to the others a brand, our product has a new image that attracts consumer’s
attentions.

We had use a unique name that sets the product apart from the other competitors.
This made the consumers easily remember our products name and be more awareness to
our products. Besides that we also design a slogan which made it more awareness by
consumers. Through this method, the consumer will recognize our product when they are
considering a particular product category. Our product name is shown as below:

Packaging of a product is known as an important part of a product. It helps to

protect the product from damage, contain the product, promote product benefits,
communicate and add convenience to the consumer. Fonterra Company had decided to
create a new image of packaging to attract more attention from consumer and made more
awareness to the market. Our new package is look convenience for the consumer due to
the cover is designed for an easy opening.
On the package of our new product, we have provided information for the
consumer. The information includes the ingredients, operating instructions, expiry date,

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nutrition information and vitamin and mineral content. It enables the consumer to read
before they purchase our product. For example, our product is approved by the Malaysia
Health Ministry and a mark that shows that our product had passed the test.
Price
When we were decided to set our new product’s price, we had faced a problem.
There are some company had produce same category product with us. So, we tried not to
set a high price due to a few competitors. So, we had decided to set a price at RM 2.99
per bar and RM 15.99 per bulk. There are 6 bars in a bulk. This is because lower price
generally lead to higher sales volume. Although the BB BAR is not expensive, but it still
can help our company to gain profit. The price had support the organization’s operating,
administrative and research and marketing cost like advertising and sales. The other
reason we do not set a high price but pricing at the near market prices is we tried to
reduce price wars in the industry and get the double win situation.
We had to choose two types method for pricing BB BAR, price skimming and
penetration pricing. Among these two methods, we had chosen the price skimming
method. We set an initial high price to cover our new product costs and generate a profit.
Our initial price is about RM 2.59 per bar. The other one ringgit is to cover the operating
cost, research and marketing costs. Therefore, our new product price is still affordable for
everyone and the consumer will be willing to purchase BB BAR at RM 2.99.
We had made a decision on set the BB BAR at the price where mention above is
because we had do some research about the market price of other brand’s energy bar by
going to some supermarkets and shopping centers. On our research, the energy bar is
available sell at the Guardian or Watson pharmacy and sell at the price around RM 3.50.
Promotion

Promotion is the activities which the firm undertakes to communicate and

promote products to the target market. Therefore, it is very important that if a business
wants to succeed, it should have a sales promotion strategy in mind. The primary
objective of a sales promotion is to improve a company's sales by predicting and
modifying the target customer's purchasing behavior and patterns. Sales promotion is
very important as it not only helps to boost sales but it also helps a business to draw new

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customers while at the same time retaining older ones. Our BB bar promotional strategy
can consist of:

Advertising: advertising is any non-personal paid form of communication using

any form of mass media. BB bar will be promoting through advertising media such as
newspaper, mails, magazines, radio and internet. Web site promotion strategy and
information about our BB bar available can increase visitors to our company site as well
as making money online. This can help consumers to more understand the functions and
features of BB bar. On outdoor advertising, we will advertise BB bar on signs, banners in
stadiums and billboards.

Sales promotion: short-term promotional activity commonly designed to stimulate

consumers and used to obtain an increase in sales. For example, we will held Trade
Shows which is we rent booths to display, demonstrate BB bar to consumers or give free
trial eat our BB bar to consumers in campus and shopping center that are for let the
consumers aware BB bar and its goods.

Public Relations: creates positive relations with their communities, investors,

industry analysts, government agencies, and the news media. Companies seek favorable
publicity to create interest in their products. Consumer contests, games and consumer
sweepstakes will be conduct to increase sales by means of contests. Besides that, we also
can promote our BB bar through special-event sponsorship such as charity, beauty contest
or model contest. This is because become a sponsor of special-event can increase
awareness from consumers to BB bar.

Place
Firstly, BB bar will sell in every city of Malaysia especially in Pulau Pinang,
Kuala Lumpur, Johor Bahru, Kluang and Batu Pahat for trial sale.
We will distribute BB bar through Wholesale Distribution channel which is
combination convenience store, gas station, hypermarkets such as Jusco, Tesco, 7-11,
Econsave, Giant, Guardian, Watson and others shopping centre in whole Malaysia.
If the sales volume of BB bar is profitable in Malaysia, then the BB bar will
promote to other countries especially United State.

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 Target Market and Segmentation

Target Market

The target market of our new product - BB Bar is target to every level of the consumers,
but our main targets are those career men and women as their meal replacement, and also
for kids or teenagers as their handy breakfast. Besides that, senior citizens are also one of
the target markets of our company. The reasons of why we targeting on them are because
our company wants to provide convenience and to let our consumer to gain balanced
nutrition in order to obtain benefits and perform well in their daily life.

Market Segmentation

 Geographic Variable

As this variable is focus on the target areas of this product, our company has decided to
introduce our new product in Malaysia only. Our company will set a period of time which
is the first 12 month as trial testing to observe the total sales of this product. Once our
company considers this product can be expansion to other country, United States country
will be the next geographic variable target. As a result of the desires of Americans for a
healthier diet, our company thinks that BB Bar is quite suitable for them to achieve a
healthy lifestyle.
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  Demographic Variable

This variable is referring to the physical characteristics of people such as age, gender,
income, and others. Our company has segmented this product to every level of consumers
such as kids, teenagers, youths, adults and also senior citizens. As the parents, they can
buy this nutrition bar for their children as snack instead of those snacks which is lack of
nutrition. Teenagers can bring this handy bar go to school as their breakfast every day, it
is very convenient for them to bring along instead of brings a big case of breakfast to
school. According to the Mintel’s research, “almost 20 per cent of those who consume
nutritious bars are doing so as a meal replacement at desk, and the proportion of women
consuming these products as meal replacements is much higher (25 per cent) than men (9
per cent)”. So, our company are going to focus to the female especially the busy career
women due to the women were more likely to claim convenience as a primary benefit
over male consumers. Our company would also turn some of our marketing efforts to
older consumers. Nowadays, consumers over 55 are increasingly active and begin joining
health clubs, therefore which is more likely a strong potential market for our new
product. Mintel's consumer research showed that one-third of this age group would
consider purchasing an energy or cereal bar.

 Behavioral variable

This variable is referring the occasions, loyalty rate, and benefit segmentation. Some
products or services are seen as being appropriate for a particular situation or
occasion. Our company trying to convince the public that BB Bar is a foodstuff that
suitable for any occasion and can take it anywhere. The ingredient of BB Bar contains
calcium, protein, iron, vitamins and otherwise. Nowadays women are high risk in getting
the osteoporosis because women needs iron and calcium than men, so that this BB Bar
can help women to prevent this kind of diseases and also enhances their bones. Calcium
also plays an important role to children and youths in building stronger, denser bones
early in life and keeping bones strong and healthy later in life. Since the BB Bar can
reach the requirement of consumers and its can provide benefits to those consumers who
take it as a daily meal.

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 Conclusion
Our company produce, distribute, market and sell ready use dairy products
throughout the world. We capture the goodness of dairy to produce products from ready-
to-drink milk and nutritional milk powders, to butter, yoghurt, superbly crafted specialty
cheeses and indulgent ice creams. Our wide range of products caters to different
consumer needs. We have Growing up Milk formulas specifically for children right
through to enriched calcium milk.

Our BB Bar is considered as a convenience goods and is an inexpensive item. Our

product has a new image that attracts consumer’s attentions Compared to the others a
brand. We had use a unique name that sets the product apart from the other competitors.
This made the consumers easily remember our products name and be more awareness to
our products. Besides that we also design a slogan which made it more awareness by
consumers. Through this method, the consumer will recognize our product when they are
considering a particular product category.
Our brands that support this wide range of products are our company most
valuable assets. Some of these are amongst the best and also most favourite dairy brands
in the world. We will develop more new innovative and healthy dairy products and keep
Fonterra's brands as the first choice for consumers by focusing our energy on continuing
to have a deep understanding to them.

Finally, we hope that BB Bar can become our company most famous product. We
hope that it can demand by our consumer all over the world as it is a healthy and
delicious product. Remember, “we eat, we strong”.

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Refrence