0 Executive Summary Provide an overview of a five year marketing plan for Camel Milk Victoria organisation. This plan will focus in recommendations and implications for the organisation management, the competitive advantage it will generate for the organisation, exact information regarding investment, and the profit that the marketing strategy generate to the organisation itself. The plan marketing will also focus only in the Victorian market.1 Table of Contents 1. Camel Milk Victoria Overview............................................................................................................................ 2 1.1. Background.................................................................................................................................................. 2 1.2. Products....................................................................................................................................................... 2 1.3. Camel Milk Victoria Vision........................................................................................................................... 2 1.4. Camel Milk Victoria Mission ........................................................................................................................ 2 1.5. Current Marketing Objectives ..................................................................................................................... 2 2. Situation Analysis ............................................................................................................................................... 3 2.1. Market Summary......................................................................................................................................... 3 2.1.1. Market Demography ........................................................................................................................... 3 2.1.2. Demand Analysis ................................................................................................................................. 3 2.2. Marketing Environment/SWOT Analysis..................................................................................................... 4 2.3. Current Competition ................................................................................................................................... 4 2.4. Competitors' Marketing promotional budget............................................................................................. 4 2.5. Sales Analysis for Similar and Competing Products .................................................................................... 4 2.6. Target Market.............................................................................................................................................. 5 2.7. Market Positioning Analysis ........................................................................................................................ 6 2.8. Product Review............................................................................................................................................ 7 2.8.1. Camel Milk Victoria – Milk................................................................................................................... 7 2.8.2. Camel Milk Victoria – Soap.................................................................................................................. 7 2.8.3. Camel Milk Victoria – Laundry Powder ............................................................................................... 8 2.8.4. Camel Milk Victoria – Lip Balm............................................................................................................ 8 2.8.5. Camel Milk Victoria – Camels .............................................................................................................. 8 3. Marketing Strategy ............................................................................................................................................. 9 3.1. Marketing Mix Summary............................................................................................................................. 9 3.2. Objectives.................................................................................................................................................. 10 3.3. Product Strategy........................................................................................................................................ 10 3.4. Place Strategy............................................................................................................................................ 11 3.5. Price Strategy............................................................................................................................................. 11 3.6. Promotion Strategy ................................................................................................................................... 12 4. Media and Budget ............................................................................................................................................ 13 5. Conclusion......................................................................................................................................................... 14 6. References......................................................................................................................................................... 152 1. Camel Milk Victoria Overview 1.1. Background Camel Milk Victoria is the largest milk provider in the state of Victoria in Australia. Chris and Megan Williams, the owners, started up the business 6 years ago by acquiring 3 camels. After a few time of conditioning and training in how to milk the animals, they decided implemented a stronger business idea. During the next years, more camels were acquired resulting in a final total of 10 in the herd. Currently, Camel Milk Victoria has become the stronger organisation in Victoria’s camel farming market, introducing not only camel milk but also a series of different products such as camel milk soap, detergent, and lip balm. During the past year, Camel Milk Victoria has also become a camel supplier by putting their own camels on sale. The organisation is now recognised as one of the market leaders around Australia. 1.2. Products Camel Milk Victoria has decided to expand their business by producing the following camel milk products:  Camel milk.  Camel milk soap.  Camel milk laundry powder.  Camel milk lip balm.  Camels for sale. 1.3. Camel Milk Victoria Vision At Camel Milk Victoria, the vision is to be the first choice camel milk company for customers, consumers and other farmers. 1.4. Camel Milk Victoria Mission Become the primary company for Victorian population, by offering the best camel milk products and services to the community as well as a competitive price. 1.5. Current Marketing Objectives The current marketing objectives of Camel Milk Victoria are:  Establish market position in Victoria.  Expand the target market of its products.  Create awareness of camel milk health benefits.3 2. Situation Analysis Camel Milk Victoria currently stands as one of the most important Camel Milk companies in Victoria. Even though it is important to assess the internal and external situational environment of the market in order to develop a stronger marketing plan. This analysis will allow us to understand better the standing position of the company in the marketing and have a clearer understanding of what needs to be improve. 2.1. Market Summary In order to develop a better market summary, the marketing plan presented for Camel Milk Victoria Company will address to specific topics: the market demography and the demand analysis. 2.1.1. Market Demography Even though Australia possess a great amount of wild camels, the production of milk is centred in domestic and trained camels. Each cow camel produces an average of four litres of milk a day. In comparison with the cow milk industry, camel milk industry has still a lot of future to work on. According to the Australian Camel Industry Association (2011), a number of camel diaries are currently being developed in Australia for the production of milk and other dairy products. Thus, it is a new product in the market people is starting to understand the importance of the product and its benefits for human consumption. The current price in the market for a one litre bottle of camel milk is of AU$21. Hence, a large amount of products produce with camel milk has been increasing significantly. All advertising efforts regarding the products are being developed around the benefits of the milk itself. Camel milk started to be marketed with a price of AU$50 but due to recent development of new farms and the introduction of new products the price has been notoriously decreasing. 2.1.2. Demand Analysis Victoria population is approximately of six million people. According to Profile.id (2011) the individual income for the Victorian population is of AU$1,500. This signifies that most of the Victorian population has or will have the minimum required amount of money to purchase camel milk. Considering that a 20% of this population are children and do not have the economic stability to buy milk there will be 4.8 million people in the potential pools. Further research suggested that another 30% of the Victorian population does not counts with the economical income to purchase an AU$25 bottle of milk will result in 3.36 million people in the prospect pool. Having in mind that each person buys 2 bottles of milk during the week that will show us that in average each person buys 104 bottles of milk a year. The resulting total market potential is of 7.3 billion (3,360,000 x 104 x $22) for camel milk.4 2.2. Marketing Environment/SWOT Analysis In order to analyse the internal and external environment a SWOT Analysis has been conducted to identify the strengths, weaknesses, opportunities, and threats, Camel Milk Victoria organisation has. The following figure shows a summary of the analysis. STRENGTHS  Health benefits of camel milk.  Development of new dairy products used in households.  100% natural products  Company leadership in Victoria. WEAKNESSES  High price of milk per litre.  Poor recognition of brand especially in big cities.  Capacity of production is low compared to similar dairy products. OPPORTUNITIES  Distribution channels can expand to big supermarkets.  Total market potential is enormous.  Consolidate as the camel milk production leader in the industry.  International expansion. THREATS  Competitors are increasing not only in Victoria but also delivering products from other regions.  Increase of other types of dairy milk.  High production costs. Table 1. Camel Milk Victoria SWOT Analysis 2.3. Current Competition Although Camel Milk Victoria is probably the stronger and leader company in the market it is important to analyse the current competition. In the case of Victoria, just one competitor has been identified: Camilk. This company is located in Rochester, Victoria. The farm is just being settled. Only produces milk for the moment. Does not specify price of their milk in website. As an objective they have the production of products such as ice cream and chocolate. They does not specify an exact number of herd but they have an impressive goal of 10,000 female camels by 2020. Other competition comes from companies that are not located in Victoria but that have the capacity to import camel milk into the state. Every state in Australia has already its camel farm. To resalt two cases. The first one is QCamel located in Sunshine Coast, Queensland. It possess a herd of 60 camels, opportunity that gives a bigger capacity of production per year. They promote delivery to other states service. They only produce camel milk, sale camels and provide training and special services in camel domestication. The second case is Humpalicious, located in South Australia. They are still in development stage but still becomes a strong competitor while it is the state neighbour to Victoria. For the moment just producing camel milk. 2.4. Competitors' Marketing promotional budget Camilk marketing promotional budget is of one hundred thousand dollars. It includes media ads and positioning of the product on major Victorian events. Qcamel and Humpalicious both have stronger promotional budget, Both companies budget for promotion is of five hundred thousand dollars. 2.5. Sales Analysis for Similar and Competing Products5 Company Type of Product Price Production per Year Camilk Camel Milk 1Lt. AU$26 1,040Lts. QCamel Camel Milk 1Lt. AU$27,5 4,160Lts. Humpalicious Camel Milk 1Lt. AU$23,5 4,160Lts. Devondale Full cream cow milk 1Lt AU$1,50 5,730Lts per cow Almond Breeze Almond coconut milk 1Lt AU$3,29 N/A Sanitarium Soy milk 1Lt. AU$1,80 N/A Lux Soap 6 pack soap AU$3,69 N/A Palmolive Soap 4 Pack soap AU$3,14 N/A Omo Laundry Detergent 5Kg Detergent AU$30 N/A Surf Laundry Detergent 1Kg AU$4,50 N/A Nivea Lip Balm 4.8g AU$2,80 N/A Chapstick Lip Balm 4.2g AU$4,82 N/A Table 2. Sales Analysis for similar and competing products 2.6. Target Market Camel Milk Victoria consists of consumers and business markets who prefer to use healthier and natural products, a good source of calcium and magnesium, trained camels and a powerful source of nutrients and chemicals that have been scientifically proved to help human organism. There are three possible market segments: males and females between 20 and 60 years old, occasion group, and health occasion group. According to the Australian Bureau of Statistics (2016) the ordinary time cash earnings have been increasing in the last years and tends to keep on doing it significantly. This opens a great opportunity for Camel Milk to obtain customers. Occasion groups The Values such as hand-made, healthy and made with Australian camels would be competitive advantage for the company. Tables 3, 4, and 5 clarifies the demographic, psychographic, and behavioural variables Camel Milk Victoria products have to satisfy the needs of the segmented target market. Buyers can choose among the five products the company has: milk, soap, laundry powder, lip balm and camels. Camel Victoria produces fresh milk with no additives and reach in minerals that are scientifically proven to help human immune system. Camel Milk Victoria soap is hand made with specific ingredients used for most sensitive skin. Recent studies confirm that camel milk can be used to treat diabetes, stimulate circulation, and treat autism.6 Variable Specification Age 20 – 60 Gender Male and Female Income AU$100,000 and above Education Graduate and above. Table 3. Demographic Variable. Variable Specification Socio-economic status Upper middle, higher and wealthy class Values, attitudes and lifestyle groupings Health conscious Table 4. Psychographic Variable. Variable Specification Purchase Occasion Special occasions (dinners, parties, etc.) Health Occasion Diabetes, Autism, immune system, growth and development, etc. Attitude towards products Enthusiastic Table 5. Behavioural Variable. 2.7. Market Positioning Analysis In order to analyse the market positioning of Camel Milk Victoria it is important to have in mind the quality, production and pricing variables. Camel Milk Victoria will adopt a differentiation positioning strategy, while consumers identify the products as high-quality items and understand that price could increase because of this. Figure 1 illustrates the position of only one product: camel milk. However, the rest of the products are consider to have the same trend as milk. It is important to evidence that the only product made with camel milk that has real competition is milk, while the other companies do not produce any of the products that Camel Milk Victoria offers. By producing high-quality products, distributing by excellent channels, advertising in high-perceived media and selling the product with a high price compare to other competitors’, Camel Milk Victoria is positioned as high quality products compare to other bands in milk industry.7 Figure 1. Market positioning Analysis for Camel Milk. 2.8. Product Review Camel Milk Victoria products offer the following benefits to their customers. 2.8.1. Camel Milk Victoria – Milk  Camel milk contains 30% less fat than cow’s milk.  Camel milk contains 40% less lactose than cow’s milk.  Camel milk good is the perfect source of calcium and magnesium.  It does not contains any additives.  Prevents diabetes.  Boosts immune system.  Stimulates proper growth and development of bones.  Prevents anemia.  Powerful effects in neurological system. 2.8.2. Camel Milk Victoria – Soap  100% hand made.  Special ingredients for most sensitive skin.  Extremely moisturising.  No irritations.8 2.8.3. Camel Milk Victoria – Laundry Powder  Gentle with clothes.  Hard with stains.  Natural ingredients.  Environment friendly. 2.8.4. Camel Milk Victoria – Lip Balm  100% hand made.  Selected natural oils.  Natural scents. 2.8.5. Camel Milk Victoria – Camels  Male and female camels.  Fully trained.  Assistance in farming and grazing.9 3. Marketing Strategy 3.1. Marketing Mix Summary Table 6. Marketing Mix Summary Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within twelve months Raise market share by 20% within twelve months. Increase the number of customers by 30% within twelve months. Product Milk Soap Detergent Camels itslef Lip Balm Demand survey to analyse consumer behaviour in Australia and demand. Acquire more female camels for production of milk. Increase milk production. Research demand assessment product standards. Analyse product design. Implement branding options to improve feel and look of products. Increase the herd by 50 camels more. Research of consumer behaviour. Continue to position the products in market. Expand product line. Research of new markets. Consideration of new market segments. Expand product line. Place Community retail stores Limited numbers Online sales Strenghthen presence in community reatil stores by increasing number of stores. Research of current retailers. Continue with local community retail stores. Offer products in major supermarkets stores. Maintain presence of product in major supermarkets in Victoria. Expand product throughout all major supermarktes in Australia. Price $20-$25 per liter Price do not change because we have invest money to increase production and no research on prices has been done. The price will be adjusted later in the strategy awaiting results in research. Research on prices. Sales promotions and discounts. Decrease sale price in at 50%. Maintain price and sales promotions and discounts. Reduce price in 10%. Promotion Less or no promotion Social media/redesign website. Continue promotion of camel milk benefits. Promote camel milk consumptions in tv shows with high rate audience in Australia. Introduce the loyal customer program. Media advertising in principle tv shows, radio and newspapers in Victoria. Promotion of products in major events in Melbourne like Formula 1, Australian Open, MotoGP, Melbourne Cup, AFL. Media advertising in principle tv shows, radio and newspapers in Victoria. Strengthen loyalty program. Advertising in pirnciple media in Victoria Media advertising in principle tv shows, radio and newspapers in Victoria. Promotion of products in major events in Melbourne like Formula 1, Australian Open, MotoGP, Melbourne Cup, AFL. Camel Milk Australia Marketing Plan (at a glance) Marketing mix elements Year's Objective3.2. Objectives. Figure 2 shows the Boston Consulting Group – BCG matrix. This matrix allow us to set up the marketing plan objectives while we established the position in the market for each product and their relative market share. Figure 2. BCG Matrix – Camel Milk Victoria This marketing plan suggests an aggressive but achievable and measurable objectives for five years:  First year Objective: Increase the production of milk and products in 20% within a year.  Second year Objective: Raise awareness of products by 20% within twelve months.  Third year Objective: Increase number of sales by 70% within twelve months.  Fourth year Objective: Raise market share by 20% within twelve months.  Fifth year Objective: Increase the number of customers by 30% within twelve months. 3.3. Product Strategy The product line strategy is the chosen strategy to use for Camel Milk Victoria five year plan. This strategy will allow the company to improve their products. It is important to resalt that it is important to acquire new milking camels in order to produce more milk and therefore, more products. This action will allow the company to start selling of camels. The product will be improved through taste, nutritional information, and design. Specific product branding strategies will be implemented to generate a unique identification of the products. Packaging and design will be improved in order to generate more sales and customers. Table 7 illustrates the product strategies that will be undertaken during the five years of implementation of the plan. Milk Soap Laundry Powder Lip Balm Camels Market Growth Relative Market share BCG Matrix Camel Milk Victoria STAR ? COW DOG11 Table 7. Product Strategies – Marketing Strategy 3.4. Place Strategy Currently, Camel Milk Victoria is using direct channel for distribution. Depending on the results of the distribution and channels strategy this will change by the end of the five years to a selective distribution intensity. In year three the plan wants to expand to supermarkets in Victoria. This situation will change drastically the distribution channels for Camel Milk Victoria products. By the end of the plan the idea is to expand market and penetrate other Australian states with Camel Milk Victoria products. In that case intermediaries will be needed to control the distribution of products around Australia. Table 8 shows the place strategies during the five year marketing plan. Table 8. Place Strategy – Marketing Strategy 3.5. Price Strategy Being accepted by the consumers and influence the competition will be the pricing objectives of the five year marketing plan. Price penetration strategy will be used since our closer competitors to the date have higher prices than Camel Milk Victoria. The other products of the company are basically just competing against traditional products. Will start maintaining the price by offering 100% natural products and various health benefits. All this factors will allow Camel Milk Victoria to have a competitive edge. Price will be reduced when more camels are acquired and research of prices is done during the five year plan. The current price will change during the future years to increase sales and reinforce the position in market. Other elements to have in mind in the price strategy is the non-price factor. Our customers are willing to pay more money for our product and that element will give Camel Milk Victoria the opportunity to gain competitive advantage. Table 9 illustrates the different strategies to be implemented during the next five years. Table 9. Price Strategy – Marketing Strategy Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within twelve months Raise market share by 20% within twelve months. Increase the number of customers by 30% within twelve months. Product Milk Soap Detergent Camels itslef Lip Balm Demand survey to analyse consumer behaviour in Australia and demand. Acquire more female camels for production of milk. Increase milk production. Research demand assessment product standards. Analyse product design. Implement branding options to improve feel and look of products. Increase the herd by 50 camels more. Research of consumer behaviour. Continue to position the products in market. Expand product line. Research of new markets. Consideration of new market segments. Expand product line. Year's Objective Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within twelve months Raise market share by 20% within twelve months. Increase the number of customers by 30% within Place Community retail stores Limited numbers Online sales Strenghthen presence in community reatil stores by increasing number of stores. Research of current retailers. Continue with local community retail stores. Offer products in major supermarkets stores. Maintain presence of product in major supermarkets in Victoria. Expand product throughout all major supermarktes in Australia. Year's Objective Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within Raise market share by 20% within twelve months. Increase the number of customers by 30% within Price $20-$25 per liter Price do not change because we have invest money to increase production and no research on prices has been done. The price Research on prices. Sales promotions and discounts. Decrease sale price in at 50%. Maintain price and sales promotions and discounts. Reduce price in 10%. Year's Objective12 3.6. Promotion Strategy The promotion strategy for Camel Milk Victoria will be implemented in three different phases. These phases are: Awareness, Campaigns, and co-branding activities. In the awareness phase, consumers will be provided with the information regarding the health benefits. In the campaign phase, an aggressive campaign will be implemented to position the products and increase the number of consumers. At last, co-branding activities will be undertaken to enhance the promotion of the products and find key and strategic partners to be able to expand into the Australian market. Table 10 illustrates the advertising and promotion strategies planned. Table 10. Promotion Strategy – Marketing Strategy Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within twelve months Raise market share by 20% within twelve Increase the number of customers by 30% within Promotion Less or no promotion Social media/redesign website. Continue promotion of camel milk benefits. Promote camel milk consumptions in tv shows with high rate audience in Australia. Introduce the loyal customer program. Media advertising in principle tv shows, radio and newspapers in Victoria. Promotion of products in major events in Melbourne like Formula 1, Australian Open, MotoGP, Melbourne Cup, AFL. Media advertising in principle tv shows, radio and newspapers in Victoria. Strengthen loyalty program. Advertising in pirnciple media in Victoria Media advertising in principle tv shows, radio and newspapers in Victoria. Promotion of products in major events in Melbourne like Formula 1, Australian Open, MotoGP, Melbourne Cup, AFL. Cobranding activities. Year's Objective13 4. Media and Budget Table 11 illustrates the budget needed to implement the marketing plan during five years. All advertising and promotion channels are covered in the strategy. More than 13 million Australian dollars will be spent during the five years of execution of the plan. Table 11. Promotional Budget. Year 1 Year 2 Year 3 Year 4 Year 5 Increase the production of milk and products in 20% within a year. Raise awareness of products by 20% within twelve months. Increase number of sales by 70% within twelve months Raise market share by 20% within twelve months. Increase the number of customers by 30% within twelve months. The Age (Weekdays) AU$27,200 x 6 weeks AU$27,200 x 10 weeks AU$27,200 x 20 weeks AU$27,200 x 10 weeks AU$27,200 x 6 weeks The Australian (Weekdays) AU$14,469 x 6 weeks AU$14,469 x 10 weeks AU$14,469 x 15 weeks AU$14,469 x 6 weeks AU$14,469 x 6 weeks Herald Sun (Sundays) AU$23,168 x 10 AU$23,168 x 12 AU$23,168 x 20 AU$23,168 x 12 AU$23,168 x 10 Channel 7 (Primetime Slot) AU$37,800 x 20 AU$37,800 x 25 AU$37,800 x 40 AU$37,800 x 20 AU$37,800 x 20 Channel 9 (Primetime slot) AU$25,000 x 20 AU$25,000 x 20 AU$25,000 x 50 AU$25,000 x 30 AU$25,000 x 20 SBS (Primetime slot) AU$4,680 x 20 AU$4,680 x 25 AU$4,680 x 40 AU$4,680 x 20 AU$4,680 x 20 SMOOTH FM AU$2,000 x 40 AU$2,000 x 40 AU$2,000 x 40 AU$2,000 x 40 AU$2,000 x 40 KISS FM AU$1,500 x 40 AU$1,500 x 40 AU$1,500 x 40 AU$1,500 x 40 AU$1,500 x 40 SBS AU$700 x 40 AU$700 x 40 AU$700 x 40 AU$700 x 40 AU$700 x 40 Facebook AU$2,000 AU$2,000 AU$4,000 AU$2,000 AU$2,000 Twitter AU$1,500 AU$1,500 AU$1,500 AU$1,500 AU$1,500 Community Manager AU$60,000 AU$60,000 AU$60,000 AU$60,000 AU$60,000 Google AU$2,000 AU$2,000 AU$2,000 AU$2,000 AU$2,000 2,064,794 2,503,706 4,409,095 2,469,930 2,064,794 Total Budget: 13,512319 Sub-total Camel Milk Australia Promotion Budget Promotion element Year's Objective Newspaper Advertising (1/2 page ads) TV Advertising (30 seconds ads) Radio Advertising (20 seconds ads) Social Media14 5. Conclusion Our current market analysis indicates that there is a significant opportunity for all Camel Milk Victoria products to develop and profit the organisation. Strong market appeal, desirable resources, competitive price, and a huge consumer base are some of the opportunities Camel Milk Victoria has to grow. Nonetheless, it is important to consider there are risks and challenges in the environment that could slow the process. A comprehensive strategy must be implemented in order to obtain the desired objectives. By adopting this five year marketing plan, Camel Milk Victoria can test their strategy in Victoria, and then expand strategically to a wider Australian audience.15 6. References Australian Bureau of Statistics. (2016). Average weekly cash earnings. Retrieved from http://www.abs.gov.au/ausstats/[email protected]/Latestproducts/6302.0Main%20Features6May%202016?opendocume nt&tabname=Summary&prodno=6302.0&issue=May%202016&num=&view= Australian Camel Industry Association. (2016). Home. Retrieved from http://australiancamelindustry.com.au/cjamel/index.php/about-camels/camel-milk Austalia Population. (2016). Population of Victoria in 2016. Retrieved from http://australiapopulation2016.com/population-of-victoria-in-2016.html Dairy Australia. (2016). Milk. Retrieved from http://www.dairyaustralia.com.au/Markets-andstatistics/Production-and-sales/Milk.aspx Organic Facts. (2016). Health benefits of Camel Milk. Retrieved from https://www.organicfacts.net/healthbenefits/animal-product/camel-milk.html Profile id. (2016). Victoria Individual Income. Retrieved from http://profile.id.com.au/australia/individualincome?WebID=110 Wong, H. Y., Radel, K., & Ramsaran-Fowdar, R. (2011). Building a marketing plan: a complete guide. New York, N.Y.: Business Expert Press, 2011.