hipp organic

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HiPP organic powder
milk

INTRODUCTION
Breastfeeding provides the best nutritional value to the newborns, however, many-
times, it is not possible for all mums. Formula Milk is now a healthy alternative or
substitute available to the mothers which provides necessary nutritional content to
the babies to grow & thrive. Thus, it is decided to launch Formula Milk by
Organic baby food supplier, HiPP Organic. The presentation aims to examine the
key trend, opportunities and competitive threats for the selected organization.

Good Morning Milk Powder

PRODUCT DESCRIPTION
• HiPP limited is the organization which specializes in producing organic food for babies and
toddlers.
• There are eight types of organic milk powder manufactures by HiPP limited.
• The management of organization desire to launch a new product named Good Morning organic
milk for babies.
• It will contain organic formula which is specially formulated using online finest organic milk
that contains Omega 3 and 6 LCPs(Long Chain Polyunsaturates) which helps the development
of the brain, eye, and nervous system.

MARKET ANALYSIS
• As the management of HiPP desires to launch new product which is Good Morning
Milk powder for babies. It will be available across United Kingdom through retail
stores like Sainsbury, Asda, Waitrose, Tesco, HiPP shop and Morrisons. They are
going to promote it using television commercial and online advertisement.
• The product will be promoted through TV advertisement, newspapers and online
promotional techniques so as to generate more demand.

Key Market Trends
United Kingdom holds 6th position for largest organic market internationally.
The organic product market share for baby food is around 10.3% in United
Kingdom with growth of 5.3% in every year.
UK baby food market is expected to increase from US $1030.1m to US
$1,056.9m, in this, Milk formula segment is considered as the key market
segment . It is mainly driven due to increase in number of working women,
more discretionary spending and parents preference towards nutritional baby
food products.

Key Market Trends
• The market value of organic has been calculated aro und£150 million and
is been growing on at rate of 3.3% year on year.

Key Market Trends Cont…
The total milk market in United
Kingdom is currently worth £2.9
billion and while value has grown
0.2% over the past year, volume has
fallen 1.8%.

Key Organic Competitors
• The key organic competitor of the
organization is Ulula, Aptamil, SMA and
Cow & Gate.
• There is stiff competition between all the
organisation and HiPP.
• To analyze the power of competitors, Porter
Five Force model has been applied:

Key Competitors Cont.
• The key competitor of the organization is Ulula, Aptamil, SMA and Cow
& Gate.
• There is stiff competition between all the organisation and HiPP.
• To analyze the power of competitors, Porter Five Force model has been
applied:

Current customer attitudes/ behaviours
• Organic formula milk consumption has increased since from last few
years as a direct impact on customer health, lifestyle and social
convenience and for a sustainable environment.
• At present people started purchasing organic products and buy for their
children also in order to stay healthy. Consumers have raised great interest
for a healthy and tasty diet with the high nutritional compound.

Main issues/opportunities
• One of the main issues which company face while making the product is related to the features and
uniqueness of the product. Before making a product, it is important for the company to identify
that its product will be liked by people or not (Hair and Lukas, 2014).
• At present people are becoming more conscious related to their health and due to this reason, they
started avoiding food which can harm their health which is an opportunity for HIPP.
• Due to increase in demands of organic milk powder for baby product, HiPP has immense
opportunities and possibilities of success after launching the new product in United Kingdom

Segmentation
Types of market segmentation
• Demographic segmentation
• Behavioural segmentation:
• Psychographic segmentation:
• Geographical segmentation

Demographic segmentation
• Demographic segmentation is one of the simple types of market
segmentation in which most companies get right people for selling their
products and services (Barroso-Méndez, Galera-Casquet and Valero-
Amaro2015).. An organisation can target its customer in demographic
segmentation on the basis of age, income occupation, religions, race and
nationality.

Demographic segmentation cont..
• Here, Hipp organic company has introduced Good Morning organic milk
for babies. So, it is targeting on the basis of age and income. There are
most of the product which is not used by all age group such as Good
Morning organic milk which is made for babies. The product is usually
made for babies who are at the age of 1 or 2 years

Behavioural segmentation
In behavioural segmentation, the company can segment on the
basis of audience behaviour, usage and choices and preference
and decision making (Fang, Wan and Liu, 2017). Most people
purchase the product on the basis of their knowledge of the
product and usage of the product.

Behavioural segmentation cont..
The usage and benefits of the product lead to impact the buying
decision of customers. Hipp organic new product is nutritional
and benefits for children’s with respect to make them healthier.
Therefore, most of the parents prefer to purchase product Good
Morning organic milk for their babies’ health and benefit.

Psychographic segmentation
• Psychographic segmentation: In Psychographic segmentation,
customers are divided on the basis of their personality, lifestyle,
and attitude. The segmentation process work on premise that
customer buying behavior can be influenced by their lifestyle
and personality.

Psychographic segmentation cont..
• People are now highly become aware of harmful effects of high pollutant
contaminate food which is impacting their healthier lifestyle. Therefore,
people are switched to organic formula milke instead of preferring food
which can impact their health. Parents usually want that their children
remain healthy for this purpose they prefer to buy Good Morning organic
milk.

Targeting
• A target market is a market where a company wants to sell its
products and services (Cardoso and van Schoor, 2017). After
making a product it is important to target a particular market to
who the duct is to be sold. It is possible to target very specific
customer groups based on past purchase and demographic
variables.

Targeting cont..
• Concentrate targeting strategy: Here Hipp organic is targeting
babies for selling its Good Morning organic milk. It included an
organic formula which is specially formulated using online finest
organic milk that contains Omega 3 and 6 LCPs which benefits
babies. Hence, most of the parents prefer to buy for their babies.

Positioning
• Positioning lead to involving implementing of targeting. The positioning of the
product can be done on the basis of its unique features (Armstrong, Kotler and
Brennan, 2015). It can be positioned on the basis of its features such it
contained organic and vitamins, mineral, Omega 3 and another nutritional
element. Further, the company is also selling the same product at the lower price
which can encourage many parents to buy Good Morning organic milk for their
babies.

Positioning cont..
• Hipp milk formula is specially formulated with the use of finest organic
milk and contains Omega 3 and 6 LCPs (DHA &AA) and PRÆBIOTIK®
oligosaccharides (GOS), as well as all the important vitamins, minerals and
other nutrients (required by law) that babies need to grow strong and
healthy. On the other side Aptamail organic big doses of antibiotics milk
contain.

Product
•Product is what a company made for selling to its
customers in order to meet their needs and wants.
At present Hipp company wants to sell the organic
product for babies, therefore it launched a new
named Good Morning organic milk for babies.

Product cont…
• It included an organic formula which is specially formulated using online
finest organic milk that contains Omega 3 and 6 LCPs. Along with this it
also contains vitamin and minerals and another nutrient which help babies
in their growth. Most of the parents prefer to buy the baby product that
contains nutrition and support them in their growth and making them
stronger (Wolfe, Silmon and Miller, 2014).. Hence this product is
specially made for babies so it does not contain any type of chemical that
can harm the baby.

Price
• Price is known as the actual amount which is buyer expected to pay for a product.
The way product is priced it lead to directly impact the sell of the firms. While
setting the price of the product it is important to notice how customers see the
product which sale by the company is. However, if there is positive customer value
than a product can be priced higher. Contrary to this is product value is low in the
eyes o customers then it should be under-priced to sells.

Price cont..
• At present Hipp company is focusing on selling its new product
that is Good Morning organic milk which is highly nutrient for
babies Hence, it can focus on using skimming pricing strategy
as because the product highly valued customers. Parents prefer
to buy those products which are healthier for their babies not
matter it charge high or low

Promotions
• While making a product it is
important for the company to
ensure that people came to aware
of its company products and
services. For this purpose, a firm
use different promotional strategies
that can easily grab the attention of
a large number of customers.

Promotions cont..
• Hipp organic has chosen social media marketing for promoting
its products and services. There are a large number of people who
are regularly present on social networking sites. Therefore,
through marketing on Facebook is one of the best methods for
grabbing the attention of customers. Along with this, it also helps

Promotions cont..
• Hipp company in avoiding the wastage of time and money. Hence Hipp
company can promote its new product that is Good Morning organic milk
on social networking sites and television in order to increase sales and
profits.

Place
• Place and placement is the way company provides its products to
customers and distribution is known as the key element of the placement.
The placement strategy will assist in measuring the channel which can be
appropriate for selling the product. A distribution channel is known as the
activities and proceeds which is needed to move a product from the
producer to the consumer (Liu, Li and Balachander, 2017).

Place cont..
• Here, to sell Good Morning organic milk, Hipp organic has targeted retail
stores and online distribution channel so that product can be received by
people at different places(Liu, Li and Balachander, 2017). A company has
its own website from where it easily sale product directly to its customers. It
is one of the effective direct distribution channels which helps in avoiding
unnecessary cost which is basically charged by intermediaries.

Conclusions
From the presentation, it can be understood that HiPP is renowned organisation who
delivers efficient quality organic baby food and milk products. In this context, the
product description of new product has been discussed. The market analysis and
competitors analysis has been discussed in this report. People become aware of harmful
effects of contaminated food and due to this reason, they prefer to buy organic food.

Reference
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• Online
• About HiPP. 2018. [Online]. Available through:<
https://www.hipp.com/about-hipp/history/>
• Are some formula-milk brands better than others? 2018. [Online]. Available
through:<
https://www.which.co.uk/reviews/formula-milk/article/choosing-the-right-form
ula-milk/are-some-formula-milk-brands-better-than-others
>
• Omsco Milk Market Report. 2017 [Online]. Available through:<
http://www.omsco.co.uk/_clientfiles/Omsco%20Milk%20Market%20Report%
202017.pdf
>