Marketing Management

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
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1MARKETING MANAGEMENT
Executive summary
The aim of this report is to discuss about the potentiality and opportunities to be gained by
Fonterra by introducing a vegan based dairy products under the brand name of O-Dairy.
Moreover, this report has also done a viability analysis, which helped in identifying the major
trends in the market and industry. Based on the trends, segmentation, targeting and positioning
strategies are being discussed along with objectives to be fulfilled. This report concluded that
introduction of vegan dairy based products will help Fonterra to tap a new market segment and
increase their market revenue.

2MARKETING MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................3
2. Viability analysis of Fonterra......................................................................................................3
2.1 Concept proposition...............................................................................................................3
2.2 PESTLE analysis...................................................................................................................4
2.3 Porter five forces analysis......................................................................................................5
3. Segmentation – Targeting – Positioning Analysis.......................................................................7
3.1 Analysis emphasizing value creation.....................................................................................7
3.2 Loyalty...................................................................................................................................8
3.3 Retention................................................................................................................................8
3.4 Identification of the most desirable segments.......................................................................9
4. Marketing objectives.................................................................................................................10
4.1 SMART objectives..............................................................................................................10
4.2 Communication and sales objectives...................................................................................10
4.3 Consolidation of viability analysis......................................................................................11
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................13

3MARKETING MANAGEMENT
1. Introduction
Innovation is the key to success in the current business scenario due to the reason that
innovation can only help in meeting the changing trends of customer requirements. Consumer
goods sector is one of those sectors, which is witnessing rapid change in the taste and preference
pattern of the customers (Jay 2016). Fonterra is operating in this sector and offering different
dairy based products. However, they are also witnessing the growth of veganism trend
worldwide and people are more avoiding animal based products. In view to this situation, they
are about to launch a plant fiber based dairy brand named O-Dairy.
2. Viability analysis of Fonterra
2.1 Concept proposition
With the growth in the veganism trend in the recent time, demand for the conventional
dairy based products is reducing. Thus, it is also getting important for Fonterra to offer an
alternative solution to the vegan population and in this case, O-Dairy will be an effective option.
This is due to the fact that O-Dairy will be made from plant fiber and thus animal milk will not
be in use (Makinen et al. 2016). In addition, different products including pasteurized milk,
cheese, yoghurt and ice creams will be promoted under this brand and all will be based on plant
fiber. Thus, the vegan customers will have the options for availing the taste and nutritional
benefits of the conventional dairy based products. The products under O-Dairy will be made
similar to the conventional ones in terms of taste and nutritional value if not more. Thus, the
value proposition for the vegan customers will be in similar to the conventional dairy based
products (Tuso et al. 22013). In terms of pricing, the price will be slightly in higher side
compared to the dairy based products due to the huge investment involved in the research and