Marketing Plan Report: Strategies for Arla Foods' Growth

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This report details a comprehensive marketing plan for Arla Foods, a multinational dairy cooperative. It begins with an executive summary and introduction, followed by a situation analysis utilizing PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors impacting the company. A SWOT analysis identifies Arla Foods' strengths, weaknesses, opportunities, and threats. The report then outlines marketing goals and objectives, along with marketing strategies including primary and secondary market strategies, and product strategies. The implementation section covers specific tactics for product, place, price, and promotion. Finally, the report addresses evaluation and control mechanisms and concludes with a summary of the key findings and recommendations for Arla Foods' marketing efforts, emphasizing sustainable practices and consumer preferences.
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Marketing plan
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EXECUTIVE SUMMARY
This report is based on marketing plan that refers to a blue print that guides marketers to
have carry their business practices effectively in markets and generate revenues by maximising
profitability. In this report marketing plan in agriculture business company is mentioned that
evaluates its external environment factors as well as its internal environment factors to identify
opportunities that are present in markets and according to that marketing plan will be designed.
In carrying marketing plan of a agriculture company effectively its marketing goals and
objectives are identified along with its marketing strategies that can be implemented along with
its evaluation and control.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Situation analysis........................................................................................................................4
SWOT analysis............................................................................................................................5
Marketing goals and objectives...................................................................................................7
Marketing strategy......................................................................................................................7
Marketing implementation..........................................................................................................9
Evaluation and control..............................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing plan is defined as an operational plan which outlines an advertising strategy
that companies will implement to generate leads and reach to its planned target market. As it
detail outreach of and various campaigns that are to be undertaken over a specific period
consisting how companies will examine effect of initiatives(Bakanova, 2019). Generally
marketing plan refers to a comprehensive document that outlines company's overall marketing
effort. It is a blue print which outlines how company implement its marketing strategy can use
resources to accomplish business objective consisting its sales targets and customer acquisition.
This report is based on developing a marketing plan for Arla Foods, which is a Danish
multinational cooperative company and its was formed due to mergers of cooperative dairy Arla
and MD foods. This report includes situation analysis, SWOT analysis, marketing goals and
objectives, marketing strategy, marketing implementation, evaluation and control along with its
conclusion.
MAIN BODY
Situation analysis
It is necessary for every company to analyse its external environment in order to examine
various external factors so that strategies and plans could be planned according to that in order to
achieve its goals(Barrett and Rose, 2020). Situation analysis of company can be analysed by
performing PESTLE analysis of company before developing any marketing plan. In terms of
Arla Foods, PESTLE analysis of companies is as follows:
Political factors are factors that determine extent to which government may influence
economy or a company. As it includes tax policies, fiscal policies, trade tariffs and so on which
government can impose around a fiscal years that can affect business environment to a great
extent. In terms of Arla Foods, company is having instability in European markets before policy
of Brexit and company is having increasing cost of business due to its trade wars in different
countries.
Economical factors are factors that are determinants of an economy's performance that
straightly impacts a company that have resonating long term affects(Barth and Melin, 2018).
These factors includes inflation rates, interest rates, foreign exchange rates, economic growth
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patterns and so on. In terms of Arla Foods, company is facing impact of fluctuations in foreign
currency exchange rate as different countries are having various economy levels so it become
difficult for company to analyse its economic factor in order to achieve economies of scale.
There is also economic slowdown and declining dairy consumption that is faced by company.
Social factors are factors that scrutinize social environment of market and gauge
elements like cultural trends, demographies, population analytics and so on. In terms of Arla
Foods, company is facing constant changing attitudes and behaviours towards high quality food
consumption and production. There is a increase in concern towards animal welfare and impact
of dairy in environment that affect working of its operations. There is also a transformation of
consumer preference to plant based alternatives.
Technological factors are factors that pertains to innovations in technology that could
affect operations of company and market favourably or unfavourably(Carson, 2018). These
factors refers to automation, research and development and amount of technological awareness
that a market possesses. In terms of Arla Foods, company is adapting a new technology to
increase and enhance farm productivity and efficiency and using artificial intelligence to forecast
and predict milk intakes.
Legal factors are factors of certain laws which affect business environment in a specific
country while there are certain policies which companies maintains to carry its activities. This
factors takes into account of various laws and regulations. In terms of Arla Foods, company is
facing a issue of product quality and safety issues that results in having product recall.
Environmental factors are factors that includes all factors that influence or analysed by
surroundings. Environmental factors are complex for specific country in tourism, farming and
agricultural. In terms of Arla Foods, these factors are impacting milk production and changing
products labels to tackle food waste. Company is focused to create positive impact on positive
environment by having sustainable business and helping farmer owners to practice in sustainable
farming.
SWOT analysis
It is essential for every company to identify its internal factors and according to that
design and plan various marketing plan and strategies in order to sustain in markets for long run
and maximize its profits(Crick and Crick, 2020). Internal factors of companies can be analysed
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by performing SWOT analysis. In terms of Arla Foods, SWOT analysis of company are as
follows:
Strengths refers to things and elements which company performs well or in a way which
differentiates them from their competitors. Generally strengths are positive points of companies.
Strengths helps companies to have a advantage in dealing with consequences that are incurred in
markets(Fitz-Koch, Nordqvist, Carter and Hunter, 2018). In terms of Arla Foods, company is
fastest growing FMCG brand in European markets. Arla foods is is having a strength of having
B2B sales that deals to other companies. Company is having a advantage of delivering
sustainable business performance to customers in corporate markets. Arla Foods is relatively
successful at its execution of their new projects and in generating good costs and returns on
capital expenditure through building new revenue streams.
Weaknesses generally refers to areas of improvements of company. Weaknesses are
weak points of that company lacks in. They are inherent features of company. In terms of Arla
Foods, company is lacking in having closure of gefleotens dairy factory. As company's financial
planning is not done properly and efficiently as its current asset ratio and liquid assets ratio
analysed that company could use cash more effectively at deal with current situations of
company. Also Arla Foods is not able to handle and deal with challenges that are present by new
entrants in their segments and they have lost small market share in niche categories.
Opportunities refers to openings or chances for something positive to happen. It basically
refers to chances that company can grab to gain competitive advantage in order to face
competition effectively and sustain in markets for long run. In terms of Arla Foods, company can
use digitalizing through e-commerce platforms and Arla Foods is a growing dairy demand in
developing markets(Hill, 2018). Company is having an opportunity of increasing flexitarian
options and diversifying into plant based alternatives. There is expansion in high capability of
MENA markets. Company can have market development that will result Arla Foods to dilution
of competitor's advantage and ensures company to have increase in its competitiveness that can
be compared with others competitors.
Threats basically includes things and elements that can negatively affects company's
activities from outside like supply chain problems, shifts in markets requirements and shortage of
recruits. It is important to anticipate threats and take corrective actions against them. In terms of
Arla Foods, company is having a threats of global climatic change deterioration that would affect
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milk production capacity. There is a negative consequences of Brexit in UK market that
company is facing and because of intense competition company is facing decrease in their
profitability and sales. Also rising of raw materials can lead to have threat to company's
profitability.
Marketing goals and objectives
Marketing goals are specified objectives that are defined in company's marketing plan.
Marketing goals includes tasks, activities, enhancements in KPIs, quotas and various
performance based benchmarks that are used analyse and measure marketing success(Jovanov
and Bezovski, 2020). Marketing goals generally includes building brand awareness, producing
high volume of qualified leads, increasing brand engagement and attributing marketing activities
for revenue generation. In terms of Arla Foods, company's marketing goals and objectives are:
Company can develop a marketing goal of delivering its new products and techniques in
their drainage system and according to that company's objective is to ensure that there should be
proper drainage system performed in order to have goods quality products and services.
Company can launch new product in fertilizers segments along with their dairy products so better
efficiency can be made and profits of company can be maximised.
Another marketing goal is that Arla foods can have is to innovate their irrigation
practices that reduces water use in their farms. And according to specified marketing goals
objectives of company is to ensure that proper irrigation facilities should be used in farms so that
water can be conserved. As in some countries, they are severely facing shortage of water so for
that Arla Foods can use various technology and in their dairy farms for irrigation can use of
water can be reduced. Company can ensure that there should be a proper irrigation practices that
should be carried in order to generate quality products as well as to conserve natural resources.
Marketing goals as well as objectives are formed to carry business operations of company as
Arla food is carried a marketing goal of carrying out drainage and irrigation facilities by using
various tools and techniques so that proper sanitation as well as agriculture services are carried
better and improved manner. This marketing goals and objectives will help Arla foods in
carrying their agricultural activities effectively. By using these drainage and irrigation
facilities water could be conserved in highly manner as well as surrounding could be maintained
well.
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Marketing strategy.
Marketing strategy is referred as a strategy of business's plan to have prospective
customers and converting them into prospective buyers of their products and services. Marketing
strategy contains company's value proposition, brand messaging and target customer
demographies and various components. It generally coveres fvarious Ps of markets which
requires price, promotion, place as well as products of company. As along with that there are
various strategies which are developed effectively in order to maximise profits of company
and generation of revenues in corporate markets. Marketing strategy generally covers 4 P' s of
marketing that covers products, place, price and promotion. In terms of Arla Foods, company 's
marketing strategy can be implemented through various components strategies that are as
follows:
Primary market strategy refers to have a particular group of customers that companies
wants to attract towards their products and services. It basically focus on marketing efforts on its
demographies, geographies and others segments. In terms of Arla Foods, company can use this
strategy to analyse target audience in different segments according to their products and services
as various demographies customers have different needs and demands, so in order to fulfil needs
of customers as well as provide products to right customers this strategy can be used.
Secondary market strategy refers to a strategy that aims at accomplishing company's
goals and objectives by maintaining a better customer relations and promoting its products and
services in markets by through advertisements and campaigns in order to generate and attract
more target customers(Kaarhus, 2018). In terms of Arla Foods, company can use this strategy in
their marketing plan to promote its dairy products such as milk powder, Dano fit, Dano
sterilized cream and other agricultural products like machine and equipments through
advertisement and campaigns.
Product strategy refers to a strategy that have a unique vision of product and services that
are provided to customers. It states that where product where product will close up. By having
product strategy company could be able to identify direction of product efforts. As it forms a
basis for executing a product outline and subsequent product releases. Product strategy enables
company to focus on a particular target market and feature planned set instead of focusing on
each elements. In terms of Arla Foods, company is adopting product strategy with a objective to
have health and natural goodness to customer through dairy products which they uses in their
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lives. Company focuses on leading and designing market with new innovative nutritious value-
added dairy products like milk powder, Dano fit and Dano sterilized cream that are made form
natural ingredients that produced in a responsible method.
People strategy is a marketing strategy element which outlines company's relationship
towards approach to their employees. This strategy basically directs how companies plans to
utilize its employees to accomplish its goals and objectives. People strategies requires to be
flexible in order to change and deal with situations as businesses designs, develops and
challenges arises(Pimbert and Moeller, 2018). In terms of Arla Foods, company can use this
strategy in their marketing plan in their workplace to ensure that their employees will get
required training according to skills that are needed to design and produce services and products
of company in order to have high performance and maximize profits.
Place strategy refers to marketing strategy that outlines and directs how and where
company will place its products and services in order to attain a gain in market share and
customer purchases. It is also known as distribution strategy where mode of distribution for
product is decided by companies. It basically determine where and how company would place its
products and services so that market share can be increased and customers could be attracted
more. In terms of Arla Foods, company can adapt place strategy in their marketing plan to ensure
company can specify and fulfil needs of customers as well as ensures that product and service 's
reach can be build according to target audience in markets.
Process strategy refers to a pattern of decisions that are made in managing business
processes so that company could achieve their competitive priorities. Process strategy consists
use of organisation's resources to provide elements of value. It is basically a approach to
transform resources into goods and services. Objective of process strategy is to increase
production process that fulfils customer's requirements. In terms of Arla Foods, company can
implement this strategy in their marketing plan to ensure that quality products should be
provided to customers in order to generate customer satisfaction towards them.
Physical strategy refers to having a physical existence in company and consists of
elements that are incorporated in to a service to make products tangible and measurable(Van
Jaarsveld, 2018). Physical strategy helps in positioning, of company and for targetting right kind
of customers. In terms of Arla Foods, company can use this strategy in their marketing plan to
have a physical existence of their company. Company can use modes of having stores and
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retailers to make products and services available to customers so that they can feel tangibility of
company and its products.s
Integrated communication strategy refers to a marketing approach that leads in creating
a specific and seamless experience for customers to connect with company (Roberts, 2018). It
helps in melding various factors of marketing communication like advertising, sales promotion,
social media and digital marketing by which tactics, methods, channels, media and activities can
be carried as a unified force. In terms of Arla Foods, company can use this strategy in their
marketing plan to communicate and make customers aware about their products and services.
They can use mode of advertising, television and online social media advertising to communicate
about their new products that are tools, fertilizers and milk products.
Marketing implementation
It refers to a process of converting marketing strategy into real life actions, tasks,
operations, projects and meeting deadlines. Marketing implementation basically defined as
process which converts marketing plans into various action tasks and operations and ensures that
these projects and operations are executed to achieve company's planned objectives. In terms of
or Arla Foods, company can implement its various marketing strategies in markets in order to
make customers aware about their new products and techniques that is reducing water use by
applying various technology tools and machines in farms in order to conserve natural resources
as well as producing quality dairy products(Schurman, 2018). Company can ensure that their
workers will be provided with required training and skills so that requirements can be fulfilled
and they will be able to perform effectively. There are also major structural issues that can arise
in implementing these strategies as there are various that are present in markets that are drought
prone so there will be less availability of water and other resources to carry its operations. There
is also an issue of meeting targetting audience that can be incurred in markets. As when target
audience is identified and determined according to products and services which company is
offering then company will not able to cover returns and investments that are incurred in
manufacturing and production of products.
Evaluation and control
As when marketing plan is ready and implemented in company's operations. It is
necessary to evaluate and control by measuring performance of company with planned
performance. It can be ensured that communication integration strategy can accurately used as
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till when customers are not aware about company 's product and services properly they will not
be able to connect with company well(Thabit and Raewf, 2018). According to SWOT analysis
company should ensure that its B2B sales are going properly as Arla Foods is having potential to
carry sales effectively in markets. As there is intense competition which is present in market
company needs to ensure its returns and strategies regularly on time in order to sustain inn
markets for long run. With situation analysis it is evaluated that marketing plan should carry
potentialities of determining political stability and economy of country to carry its business
practices effectively and generates revenues. Marketing plan of Arla foods, should ensures that
there should highly effective technology used in production and manufacturing of products and
services son that return on investment should be done properly (Thurner and Zaichenko, 2018) .
It can be measured that operations and activities that are carried by company should be highly
measurable and achievable and create sustainable marketing environment that serve social
welfare as well. It can be ensured that marketing strategies should be rightly implemented in
order to carry marketing plan of company effectively and efficiently.
CONCLUSION
From above report it has been concluded that it is essential for every company to develop
a marketing plan as it is a outlines a company's overall marketing strategies that helps in
company to achieve its desired goals and objectives in order to sustain in markets for long run.
For having effectiveness and efficiency in company marketing plan is being developed where
various external environmental factors are identified by performing PESTLE analysis along with
SWOT analysis of company is done to determine its internal capabilities in order to develop
marketing plan. There various goals and objectives of company is identified and according to
that marketing strategies are implemented in marketing plan so that goals and objectives can be
met by reviewing and measuring different evaluation techniques to measure performance of
company is mentioned.
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REFERENCES
Books and Journals
Bakanova, E., 2019, June. Revisiting the question of the small business development in the
agricultural sector. In International Scientific and Practical Conference “Digital
agriculture-development strategy”(ISPC 2019) (pp. 384-388). Atlantis Press.
Barrett, H. and Rose, D.C., 2020. Perceptions of the fourth agricultural revolution: what’s in,
what’s out, and what consequences are anticipated?. Sociologia Ruralis.
Barth, H. and Melin, M., 2018. A Green Lean approach to global competition and climate
change in the agricultural sector–A Swedish case study. Journal of cleaner
production, 204, pp.183-192.
Carson, K.I., 2018. Agricultural training and the labour productivity challenge. International
Journal of Agricultural Management, 6(3-4), pp.131-133.
Crick, J.M. and Crick, D., 2020. Coopetition and COVID-19: Collaborative business-to-business
marketing strategies in a pandemic crisis. Industrial Marketing Management, 88,
pp.206-213.
Fitz-Koch, S., Nordqvist, M., Carter, S. and Hunter, E., 2018. Entrepreneurship in the
agricultural sector: A literature review and future research
opportunities. Entrepreneurship Theory and Practice, 42(1), pp.129-166.
Hill, B., 2018. Farm incomes, wealth and agricultural policy. Routledge.
Jovanov, T. and Bezovski, Z., 2020. An insight into the content of the marketing plan as a guide
for business operations. Macedonian International Journal of Marketing, 6(12), pp.7-
16.
Kaarhus, R., 2018. Land, investments and public-private partnerships: what happened to the
Beira Agricultural Growth Corridor in Mozambique?. The Journal of Modern African
Studies, 56(1), pp.87-112.
Pimbert, M.P. and Moeller, N.I., 2018. Absent agroecology aid: on UK agricultural development
assistance since 2010. Sustainability, 10(2), p.505.
Roberts, J., 2018. Multinational business service firms: development of multinational
organization structures in the UK business service sector. Routledge.
Schurman, R., 2018. Micro (soft) managing a ‘green revolution’for Africa: The new donor
culture and international agricultural development. World Development, 112, pp.180-
192.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).
Thurner, T.W. and Zaichenko, S., 2018. Technology transfer into Russia’s agricultural sector—
Can public funding replace ailing business engagement?. Science and Public
Policy, 45(5), pp.683-691.
Van Jaarsveld, C.J., 2018. The effect of employee attitude on brand value in a selected
agricultural business (Doctoral dissertation, North-West University).
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