Developing a Strategic Marketing Plan for Milco: A Case Study

This report provides a detailed analysis of Milco's strategic marketing plan, focusing on how effective marketing strategies can positively impact business performance. It includes an external environmental analysis using PESTEL, and a medium-term marketing plan with defined market goals and target markets. The report evaluates Milco's customer profile, segmentation plan (geographic, demographic, and psychographic), and emphasizes diversity in services. It also covers internal analysis using Porter's five forces to identify competitors, marketing mix strategies, stakeholder analysis, and an Ansoff Matrix for product development. The report includes a risk matrix analysis and recommendations for overcoming potential risks. The study further explores macro and micro-environmental factors, BCG Matrix, Reger’s Innovation and provides a financial forecast and promotional budget to support the marketing plan.

Running head: STRATEGIC MARKETING PLANNING
Strategic Marketing Planning
Name of the Student
Name of the University
Author’s Note

1STRATEGIC MARKETING PLANNING
Executive Summary
This very specific study has made detailed overview on how an effective marketing plan and
policies leaves a major positive impact on the overall performance of business organizations.
Milco primarily aims to act as a proactive partner for achieving their target growth by using
various effective marketing strategies and policies. Providing the quality of products and services
is not the only mission of a business organization. Therefore, the business experts have to focus
on making effective marketing plan based on which the customers can get an in-depth overview
about the products and services. Before conducting an effective marketing strategy, the
organization has focused on making external environmental analysis by evaluating its political,
economic, socio-cultural, technological, environmental and legal factors. In order to make an
effective medium term marketing plan the business experts of Milco has planned to fix their
market goal as well as target market. Based on the target market and target location the
organization has to make effective situational analysis. While evaluating the customer profile of
Milco, it is observed that customers are from diverse cultural backgrounds and attitudes.
Therefore, the marketing managers have to focus on rendering diversity on their services. Milco
marketing manager has made effective segmentation plan as per geographic demographic and
psychographic overview. In addition, the organization does not wish to show any kind of gender
biasness in their services. Both male and female customers tend to get equal priority and
response. On the other hand, as per psychographic market segmentation customers are from
different psychological beliefs and attitudes. Based on the demands of market the experts have to
analyze the sales volumes first so that the products do not become out of stock. Milco has
appointed several employees within the operation system. Porter’s five forces help an
organization to make in-depth industry analysis about the demands of buyers and suppliers in
competitive environment.

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Based on the Porter’s five force model Milco marketing executives can easily identify their
competitors. Some of the most recognizable dairy firms of Sri Lanka have occupied a
predominant place in the realm of beverage industry. Marketing and sales is one of the most
significant parts of promoting the brands to the target customers. As a result, people belonging to
various places get aware of the products and services. Marketing mix strategy primary evaluates
on how Milco after rendering an innovation on the Ps can grab attention of various customers. In
this very specific study, the author has primarily emphasized on marketing mix of Milco. While
making an effective marketing plan Milco has considered customers as their primary
stakeholder. After identifying the stakeholder the marketing manager have to make in-depth
research and development process about the needs and desires of the target customers. As per the
current market scenario, Milco wants to maintain product development strategy. By rendering
new products based on the same industry the organization tends to expanding their entire
business growth towards services. This risk matrix analysis has portrayed expected risk factors
while implementing the marketing plan. Based on the priority level risk factors are analyzed in
this study. Required recommendations have also been given for overcoming risk factors.

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Table of Contents
1. Introduction..................................................................................................................................5
2. Corporate strategy:.......................................................................................................................5
2.1 Mission and vision of the company:..........................................................................................5
2.2 Summary of the overall position:..............................................................................................6
2.3 Scenario planning:.....................................................................................................................7
3. Internal analysis:..........................................................................................................................8
3.1 Porter’s five forces:....................................................................................................................8
3.2 Competitor’s analysis:...............................................................................................................9
3.3 SWOT:.....................................................................................................................................10
4. Marketing Objectives and financial objectives:........................................................................12
5.1 Customer profile:.....................................................................................................................12
5.2 Segmentation:..........................................................................................................................12
5.3 7Ps of marketing mix:..............................................................................................................14
Marketing mix:..............................................................................................................................14
6. Implementation:.........................................................................................................................16
6.1 Competency evaluation:..........................................................................................................16
6.2 Stakeholder analysis:...............................................................................................................17
6.3 Ansoff Matrix:.........................................................................................................................17
7.1 Financial Forecast (Profit and loss analysis)...........................................................................18
7.2 Effective promotional budget:.................................................................................................19
Risk matrix:...................................................................................................................................21

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8. Macro-environmental analysis:.................................................................................................22
8.1 PESTEL:..................................................................................................................................22
8.2 Mendelow Seven Market Model:............................................................................................24
9. Micro environmental analysis:..................................................................................................26
9.1 B2B vs B2C:............................................................................................................................26
9.2 Analysis on needs wants and demands:...................................................................................27
9.3 BCG Matrix:............................................................................................................................27
9.4 Reger’s Innovation:.................................................................................................................28
10. Recommendation and conclusion:...........................................................................................29
Reference List:...............................................................................................................................32

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1. Introduction
Milco is one of the most prestigious nutrition food and beverage companies occupying
immense fame and recognition in the market of Sri Lanka due to its superior quality of products
as well as services. This specific company primarily aims to act as a proactive partner for
achieving their target growth by using various effective marketing strategies and policies. Like
the market of Srilanka, Milco tends to grab the attention of global customers by rendering an
improved and innovative marketing plan within business strategies and policies. This very
specific study has focused to provide detailed analysis about a medium term marketing plan on
Milco with the help of which the company can expand their business beyond going the regional
boundaries. Providing the quality of products and services is not the only mission of a business
organization (McDonald & Wilson, 2016). Therefore, the business experts have to focus on
making effective marketing plan based on which the customers can get an in-depth overview
about the products and services.
2. Corporate strategy:
2.1 Mission and vision of the company:
Started the entire process of journey in the year 1956 under ministry of agriculture Milco
has established their business in Colombo. The primary mission of the organization is to provide
superior quality of milk to the target market is the primary objective of this business
organization. National Milk board was formed for the development of dairy and milk collection.
Around 70,000 dairy firms are there which provides milk supply to the various places of Sri
Lanka (milco.lk, 2018) Milco tends to sell their products in the market in the name of ‘highland’.

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2.2 Summary of the overall position:
This particular brand has achieved immense recognition and image in the realm of food
and beverage industry in the market of Srilanka. On the other hand, in last five years the
organization has enormously increased its sales volume growth. In this kind of situation, the
market department of Milco has decided to strength their marketing plan so that customers get
well aware of the products as well as services. In order to expand the business in various
geographic locations Milco should make a medium term plan in order to grab the attention of
customers. This very specific study after making in-depth macro and micro-environmental
analysis has decided to make medium term marketing plan. With the help of an approximate
financial forecast as well as promotional budget the marketing managers have made
chronological plan on how to introduce the brands and services in the global market (Preston,
2012). 6.2 Porter’s generic strategy:
Porter’s generic strategy primarily determines whether the profitability of a business
organization is above or below the industry average. Porter’s generic strategy is constituted with
four major factors including cost leadership, differentiation, cost focus and differentiation focus.
In the cost leadership strategy the business firm has to become the low cost producer in order to
create attention of the customers (Whiting & Williams, 2013). Differentiation believes that one
particular feature of a business organization would have to be different that would create a
differentiation this product with others. If an organization can focus on reducing the product cost
in order to grab customers’ attention, the organization would have to face less competitors in the
market. On the other hand, focus differentiation signifies to render a unique feature on the
product or on services to draw buyers’ consuming perception. However, after evaluating Porters’
generic strategy it can be stated that Milco tends to focus on cost leadership strategy with the

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help of which customers having average income status can easily afford their products and
services.
Figure 1: Porters’ generic strategy
(Source: Whiting & Williams, 2013)
2.3 Scenario planning:
Scenario planning is the systematic method on how organization plans to develop their
business process in future. In order to make an effective medium term marketing plan the
business experts of Milco has planned to fix their market goal as well as target market. Based
on the target market and target location the organization has to make effective situational
analysis (Boone & Kurtz, 2013). After conducting situational analysis the business experts have
to make marketing strategies. Budget plan is one of the most significant parts of scenario
planning for Milco . Based on the estimated budget, Milco would focus to maintain product
promotional strategies and policies. A systematic risk matrix would be created based on the

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marketing plan structured by the marketing managers (Morgan, 2012). At the end, an effective
recommendation would be provided based on the marketing plan for evaluating its limitations
and future scope.
Figure 2: Scenario planning for a medium term marketing plan
(Source: Westwood, 2016)
3. Internal analysis:
3.1 Porter’s five forces:
Porter’s five forces help an organization to make in-depth industry analysis about the demands
of buyers and suppliers in competitive environment.
Power of the suppliers Power of the suppliers of beverage products in the market of Sri Lanka is
low due to innumerable number of distributors.
Power of the buyers Power of the buyers is high due to immense product diversity in the
beverage industry of Sri Lanka
Competitive rivalry Milco does not have to threat immense threat from its competitors due to

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monopoly of business. Milco as a milk suppler is very famous and
recognized in the market of Sri Lanka. Therefore, the organization does
not have to receive severe threats from its competitors.
Threat of the substitutes The market of Sri Lanka is constituted with large number of substitute
beverage products such as cold drinks, health drinks, fruit juice and so
on. As a result, the marketing managers have to face challenges in
drawing the attention of target customers towards their products.
Threat of new market entry Milco is prevailing in the market of Sri Lanka since 1956. Therefore, the
organization does not have to face any threat for new market entry. As a
result, both the customers and the service providers have already shared
an effective rapport with each other.
Table 1: Porter’s five force analysis on beverage industry
(Source: Kim & Ko, 2012)
3.2 Competitor’s analysis:
Competitors’ analysis is the systematic method of identifying the strengths and
weakness of its competitors before making the marketing plan. Before making an effective
competitor analysis the business executives have to focus on several factors (Lipsman et al.,
2012). The factors are as follows:
 Identify the competitors:
Based on the Porter’s five force model Milco marketing executives can easily identify
their competitors. Some of the most recognizable dairy firms of Sri Lanka like Pelwatte Dairy
industries Limited, Royal dairy Lanka, Anchor Milk have occupied a predominant place in the

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realm of beverage industry. Therefore, these organizations have already given major threats to
its competitors.
 Analyze its strengths and weakness:
The above business brands mentioned in the study are established especially in the
market of Srilanka. As a result, these business organizations are very much restricted within the
specific geographical boundaries. As per the geographic zone these competitors are possessed
with limited number of target customers (Erdoğmuş & Cicek, 2012). However, Milco has
already established their brands in the market other countries as well. As a result, the number of
target customers is high in comparison to its competitors. As per the strengths of Pelwatte Dairy
industries Limited, Royal dairy Lanka, Anchor Milk, the organizations like to maintain
cooperative outlook with the employees which reflects a huge positive impact on their
performances. Customers do not have to wait for a long time in receiving services.
 Implement innovative strategy for gaining competitors’ advantage:
Based on the competitors marketing strategies and policies Milco can focus on
implementing marketing mix strategy and policy at the workplace (Ashley & Tuten, 2015).
Based on the marketing mix strategy, the business experts can easily improve seven Ps of
marketing promotion in order to gain competitors advantage.
3.3 SWOT:
Strength Weakness
 Milco is endowed with sufficient financial
resource, human resource and
 Marketing executives are not well trained
and competent for proactive business

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technological resources
 Affordable price of products is the USP of
this organization
 Effective and superior quality of service
process
 Lack of product diversity is the major
drawback. Milco is primarily famous for
milk products. Customers do not get
variable options while purchasing products
 Lack of effective promotional plan
Opportunities Threats
 Milco has immense opportunities in
expanding their entire process of business
in the international market
 Competitors market threat
 Sufficient number of labor force of
competitors in providing services is a
major challenges in maintaining image and
reputation for Milco.
Table 2: SWOT analysis of Milco
(Source: Minazzi, 2015)
Figure 4: SWOT analysis of Milco
(Source: Minazzi, 2015)

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4. Marketing Objectives and financial objectives:
 To achieve brand identity and brand image in the global market
 To improve more financial growth by expanding business process of Milco
5. Marketing strategy:
5.1 Customer profile:
While evaluating the customer profile of Milco, it is observed that customers are from
diverse cultural backgrounds and attitudes. Therefore, the marketing managers have to focus on
rendering diversity on their services (Shank & Lyberger, 2014). As a result, customers from
various religious backgrounds do not get hesitated in using Milco products. As per demographic
background of Sri Lanka people are from average level of income status. As a result, the
organization like Milco tends to follow low cost product strategy in order to grab customers’
attention. People being technologically developed and well accustomed are very flexible with
social media promotion (Reijonen et al., 2012). As a result, Milco intends to make effective
social media promotional activities in order to attract people of different geographic market.
5.2 Segmentation:
Milco marketing manager has made effective segmentation plan as per geographic
demographic and psychographic overview. As per geographic segmentation the marketing
executives have targeted to expand their business in the key cities of Sri Lanka such as Colombo,
Kandy, Galle, Kalmunai, Matara, Gampola and so many. These particular cities leave major
positive impact on the economic growth of Sri Lanka. Therefore, Milco has decided to expand

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their business process in the market of these cities to render popularity of products and services.
As per demographic market segmentation, the organization has focused on drawing the attention
of those customers who have average income status (Chung, Steenburgh & Sudhir, 2013). The
product price of Milco enables average cost people in affording products as well as services. In
addition, the organization does not wish to show any kind of gender biasness in their services.
Both male and female customers tend to get equal priority and response. On the other hand, as
per psychographic market segmentation customers are from different psychological beliefs and
attitudes. Milco has made their promotional strategies and policies in such a way that it can
easily draw the attention of people from various psychological backgrounds and attitudes.
However, this very specific study has focused to target the age group of customers. People from
20 to 40 age group are primarily targeted in order to provide their effective feedback to the
customers (Foxall, 2014). Customer service providers with the help of multi-lingual flexibility
can make an effective communication with the customers from different cultural backgrounds.
Figure 5: Market segmentation
(Source: Constantinides, 2014)

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5.3 7Ps of marketing mix:
Marketing mix:
Marketing mix strategy primary evaluates on how Milco after rendering an innovation on
the Ps can grab attention of various customers. In this very specific study, the author has
primarily emphasized on 4ps of marketing mix of Milco.
Product:
Milk is the core product with which Milco is dealing for expanding their business in the
rea of beverage industry. Around 70,000 dairy firms are there which provides milk supply to the
various places of Sri Lanka. However, this very specific milk delivery supplier with the help of
effective service method tends to maintain both B2B as well as B2C business (Hays, Page &
Buhalis, 2013). Along with maintaining the quality f products the organization tends to focus on
service quality as well.
Price:
Affordable price range is the primary USP of this very specific business organization. In
quest of grabbing the attention of large number of customers, the organization has focused o
follow low cost pricing strategy (Constantinides, 2014). As a result, people having average
number of income status can easily draw the attention of customers.
Promotion:
Milco tends to follow both traditional media promotion as well as social media
promotion. With taking newspaper and electronic media vehicle the Milco has targeted people

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from multicultural backgrounds and attitudes. At the same time, target customers from the age of
30 to 40 are not well accustomed with the advancement of technology. In this kind of situation,
only social media promotion is not effective enough in drawing the attention of middle age group
of people (Luo & Zhang, 2013). On the other hand, in order to draw the attention of young
generation social media platform is the primary media vehicle where the business executives
would be able to draw the attention of large number of target customers.
Place:
Milco is situated on the recognizable cities of Sri Lanka like Colombo. Milko can easily
draw the attention of target customers due to the convenience of their center. In addition, service
providers are very much flexible in maintaining a good rapport with the customers from various
cultural and geographical backgrounds (Cambria et al., 2012).
 People:
People refer to the staffs and salespeople who are directly associated with the marketing
department. Milco marketing managers by maintaining an effective coordination with the
executives tend to make participative decision towards reaching the business success. As a result,
both the business managers and the employees share a good bond while providing services.
 Process:
The service process of Milco is very first which has left major positive impact on the
overall success of business. In order to draw the attention of customers Milco has launched
online delivery process as well. As a result, customers by sitting at their own workplace can
easily receive the services.

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 Physical evidence:
Physical evidence refers some of the major factors that include physical environment
where the products and services are delivered, packaging and branding. The product packaging
system of Milco is very scientific based on which the customers show their interest in purchasing
products from the organization.
Figure 6: 7ps Marketing mix strategy
(Source: Hudson & Thal, 2013)
6. Implementation:
6.1 Competency evaluation:
Competency evaluation is the systematic method of analyzing the competency level of an
organization in terms of providing economic support and human resource support for making an
entire marketing plan successful. After making in-depth competency evaluation of Milco it has
been observed that economic strength is one of the most prominent factors for enhancing their
business (Hudson & Thal, 2013). In order to expand the business in various geographical

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backgrounds and attitudes Milco would have to strengthen their economic structure more
effectively. Similarly, in order to make promotional activities more effectively Milco would have
to enhance their promotional budget. Therefore, rendering economic strength is one of the most
significant factors for Milco.
6.2 Stakeholder analysis:
Before making an effective marketing and promotional plan the business experts have to
focus on effective stakeholder analysis. Stakeholders are primarily constituted with two major
types including internal stakeholder and external stakeholder. Employees, managers, board of
directors, investors are considered internal stakeholder. On the other hand, suppliers, customers
are considered as external stakeholder (Whiting & Williams, 2013). While making an effective
marketing plan Milco has considered customers as their primary stakeholder. After identifying
the stakeholder the marketing manager have to make in-depth research and development process
about the needs and desires of the target customers. As per the market trends and their desires,
the products are designed. On the other hand, the promotional strategies are framed as per the
educational and psychological backgrounds of target customers.
6.3 Ansoff Matrix:
The Ansoff Matrix is one of the most significant strategic planning tools, which provide a
detailed overview about the future growth to help executives, senior managers, and marketers.
This specific framework is constituted with four major categories including market penetration,
market development, product development and diversification. Market penetration signifies that
the organization tends to achieve the growth and success with the help of existing products
(Hudson & Thal, 2013). Market development implies that organization by implementing new

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market segmentation tends to develop business process. Product development implies rendering
new products for the existing target market. Diversification signifies that the firm grows by
diversifying its business. As per the current market scenario, Milco wants to maintain product
development strategy. By rendering new products based on the same industry the organization
tends to expanding their entire business growth towards services.
Figure 7: Ansoff Matrix
(Source: Hudson & Thal, 2013)
7. Control and forecast:
7.1 Financial Forecast (Profit and loss analysis)
Components for budget YEAR 1 YEAR 2 YEAR 3
Sales 20,000 250,000 450,000
Direct Sales Cost 2,600 Rp45,000 Rp75,200
Other Production Expenses 0 Rp0 Rp0
TOTAL COST OF SALES Rp2,600 Rp45,000 Rp75,200
Gross Margin Rp17,400 Rp205,000 Rp375,800

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Expenses
Payroll Rp90,000 Rp100,000 Rp200,000
Equipments 1500 Rp25,000 Rp45,700
Depreciation Rp0 Rp0 Rp0
Necessary Utilities 1400 Rp2,000 Rp2,500
Insurance 500 Rp4000 Rp3,700
Rent Rp500 Rp12,000 Rp20,000
Payroll Taxes 14,000 19,000 Rp42,000
Total Operating Expenses 107,900 Rp162,000 Rp313,900
Profit Before Interest and Taxes (Rp90,038) Rp20,000 Rp10,580
EBITDA (Rp90,038) Rp20,000 Rp10,580
Interest Expense Rp0 Rp0 Rp0
Taxes Incurred Rp0 Rp6,810 Rp3,174
Net Profit (Rp90,038) Rp13,190 Rp7,406
Table: Financial analysis for profit and loss
(Source: As created by the Author)
After evaluating the financial forecast of profit and loss for three years it has been
observed that the organization in the first years failed to achieve profit. The second and third
year has rendered a progress for the organization.
7.2 Effective promotional budget:
Promotion Tools Amount

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(in Rp)
Digital Media Marketing Tools
Facebook 5,000
Twitter 4,000
Youtube 7,500
Total Social Media Marketing expenses 16,500
Other Online Marketing Media
E-mail Marketing 20,000
Online Display advertisements 15,000
Other Online promotional Campaigns 29,000
Total Budget for Online Media 64,000
Traditional Marketing Media
Newspapers 20,000
Magazines 20,000
Total Print Media 40,000
TV Channels 70,000
Billboards 35,000
Total 105,000
Total Required Budget for Promotion 225,500
Table 2: Budget of promotional tools
(Source: As created by the author)
Promotional budget is one of the most effective plans, based on which Milco by using
various media tools would be able to reach the doorstep of target customers. Therefore, in order

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to make a marketing plan successful Milco should enhance their budget for promotional
purposes.
Risk matrix:
Risk Matrix Likelihood
Rare Unlikely Possible Likely Almost
certain
Severe:
Marketing
executives are
not well trained
and competent
for proactive
business
Medium Medium High Extreme Extreme
Major: Lack of
product
diversity
Low Medium Medium High Extreme
Moderate:
Limited number
of target
customer
Low Low Medium Medium High
Minor: Lack of
effective
promotional
Low Low Low Medium Medium

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plan
Minimal:
Ineffective
communication
among the
employees of
marketing
department
Low Low Low Low Low
Table: Risk Matrix of Milco as per priority basis
(Source: As created by the author)
This risk matrix analysis has portrayed expected risk factors while implementing the
marketing plan. Based on the priority level risk factors are analyzed (from high to low). In order
to make the marketing plan successful Milco would have to take effective initiatives on those
specific risk factors. By using proper risk management analysis, Milco can make a proper plan of
reducing the risk factors.
8. Macro-environmental analysis:
8.1 PESTEL:
Before conducting an effective marketing strategy the organization has to focus on
making external environmental analysis by evaluating its political, economic, socio-cultural,
technological, environmental and legal factors.

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Political  Sri Lanka being a democratic unitary state is governed by
semi-presidential system. At the current hierarchy of
structured government Sri Lanka is possessed with stable
government policy (Lidstone & MacLennan, 2017). As a
result, the organization does not have to face challenges in
following government regulations and acts while running
business process
Economic  Sri Lanka is primarily recognized as one of the fast growing
middle income countries. As per 2012 data Sri Lanka has a
yearly gross domestic output of US$64 billion in the
international monitory fund. However, the marketing managers
of Milco while making pricing strategies should follow the
economic strength of the state. Sri Lanka being developing in
economic status is endowed with people having average income
status. As a result, Milco has to fix their average cost pricing
strategies for attracting target customers.
Socio-cultural  Over 20 million people exist in the soil of Sri Lanka. They are
from diverse cultural backgrounds and attitudes (Beach, 2014).
As a result, the marketing managers of Milki should maintain
their product features in such a way that it can grab the attention
of the people of diverse cultural backgrounds and attitudes.
Technological  Sri Lanka is constituted with technological resources. As a
result, while maintaining promotional strategies and marketing

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campaign the marketing executives of Milco can use advanced
technology for making their marketing plan more systematic.
Environmental  Sri Lanka is constituted with tropical climate with varying
temperature as per the location (Parente & Strausbaugh-
Hutchinson, 2014). Therefore, liquid products have major
demand in the market of Sri Lanka.
Legal  Legal system of Sri Lanka is highly complex and mixture of
several laws due to the cultural diversity. Therefore, in order to
run the entire process of business successfully the business
managers can implement some of the major regulations and acts
at the workplace for avoiding workplace hazards. The relevant
acts and regulations include data protection act, right to
information act, anti-discrimination act and so on.
Table 1: PESTEL Analysis based on environmental factors of Sri Lanka
(Source: Stelzner, 2014))
Figure 7: PESTEL Analysis based on environmental factors of Sri Lanka

25STRATEGIC MARKETING PLANNING
(Source: Chaffey & Smith, 2013)
8.2 Mendelow Seven Market Model:
Mendelow Seven Market Model is constituted with four major categories. Category A
signifies the key players who are primarily associated with the organizational success. Investors
and the customers are considered as one of the most effective players for rendering
organizational success. Milco has provided major attention on satisfying the needs and demands
of these key investors. By providing quality of products to the customers is the primary ways of
grabbing customers’ attention (McCorkle & McCorkle, 2012). On the other hand, business
experts tend to maintain effective rapport with the investors so that they do not show their
reluctant attitude for investing their money for promotional activities of Milco. Category B
indicates informed people without the presence of whom the business experts cannot run their
marketing plan successfully (Eshuis, Braun & Klijn, 2013). Employees, suppliers, local
community is considered as key informed people. Business experts in order to make the
marketing plan successfully have to make effective communication with the employees,
suppliers, local community.
Category C is the division of keeping people satisfied. In order to run the entire process
of business in the market of Sri Lanka, Milco would have to focus on following the regulations
and acts of government. Therefore, the organization has to share a good bond with the authorities
of government (Hamper, 2013). Category D implies minimal efforts which signify low
power and low interest. In order to make a marketing plan systematic and successful, the
business experts of Milco can give less importance on outlet from where the customers can
afford the product.

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Figure 8: Mendelow Seven Market Model
(Source: Schwarz & Hunter, 2012)
9. Micro environmental analysis:
9.1 B2B vs B2C:
B2B is the product selling method from one particular business to another. B2B sales
relationship has a longer life span. The experts can render immense profitability in maintaining
B2B selling method (Saravanakumar & SuganthaLakshmi, 2012). Milco tends to supply their
milk products to various retail business organizations. On the other hand, B2C product selling
method indicates that product should be sold from organization to specific customers. This
particular method may not be long term. If an individual customer loses its loyalty to the
organization due to product quality issue the business organization would have to face
difficulties in regaining the trust of customers (Stelzner, 2014). As a result, B2C selling method

27STRATEGIC MARKETING PLANNING
is possessed with immense risk factors. Milco tends to maintain both B2B and B2C product
selling methods both for expanding the entire process of business in various geographic markets.
9.2 Analysis on needs wants and demands:
In order to maintain entire operation process of business within a systematic method the
business experts have to gather a clear perception regarding needs and demands. Based on the
demands of market the experts have to analyze the sales volumes first so that the products do not
become out of stock (De Vries, Gensler & Leeflang, 2012). Milco has appointed several
employees within the operation system. The operation managers of Milco have to take the
responsibility of maintaining an effective balance between supply and demand.
9.3 BCG Matrix:
BCG matrix primarily evaluates company’s market growth based on the competitors’
strategies and policies. This particular framework is constituted with four major factors including
dogs, question mark, stars and cash flow. Dogs signifies low market share with low growth rate
of products. Question market implies that the market share is low still the product has faced
immense market growth (Hudson & Thal, 2013). Stars implies high market share with high
growth of products. Lastly, cash flow signifies a return on assets that is greater than the market
flow. After evaluating the four phases of BCG matrix the current position of Milco can be placed
on question mark. This particular position signifies that the product of Milco is gradually facing
immense improvement after getting positive feedback from the customers. At the same time, still
the company would have to focus on enhancing its market share rate.

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Figure 10: BCG Matrix
(Source: Whiting & Williams, 2013)
9.4 Reger’s Innovation:
Roger’s diffusion of innovation theory implies on how a product gains a momentum
reputation and diffuses through a specific population. This particular framework signifies that
adoption of a new idea as well as behaviors of people on product (i.e., “innovation”) do not
happen simultaneously in a social system (Sashi, 2012). Rather it is a process where some
people are more appropriate in adopting the innovation than others. This particular framework is
constituted with five major factors including innovators, early adopters, early majority and late
majority laggards.
Innovators are the people who want to be the first to try the innovation. Early adopters
are the people who represent opinion leaders. Early majority are the rarely leaders. Late majority
are the people who are skeptical of change. They will just adopt an innovation after it has been
tried by the majority. Laggards implies that these people are bound by tradition and very

29STRATEGIC MARKETING PLANNING
conservative (Sashi, 2012). However, this particular framework would help to understand the
marketing executives of Milco on how the people are accepting their innovative marketing plan.
Figure 11: Reger’s Innovation
(Source: Sashi, 2012)
10. Recommendation and conclusion:
Based on the implemented marketing plan some of the major recommendations have
been provided which are as follows:
 Milco should enhance their budget for promotional activities. The marketing executives can
give more focus on new media promotion so that customers from different geographical
backgrounds and attitudes can be aware about the brands and services of Milco . With the
help of social media promotional activities the customers can collect direct feedback from the
customers by sitting their own workplace (Constantinides, 2014). Automatically the business
experts would gather large number of feedback from the customers directly.
 It has been observed Milco has not made an effective direct marketing for collecting
customers’ feedback. As a result, the organization has faced immense challenges in receiving
strategies implementation plan (Luo & Zhang, 2013). This very specific study has focused to

30STRATEGIC MARKETING PLANNING
implement direct marketing strategy so that the marketing executives can directly
communicate with the customers and collect their necessary feedback.
 While evaluating the marketing plan it has been identified that the marketing executives tend
to maintain a distance at the workplace of Milco . In this kind of situation, the executives do
not exchange necessary thoughts and ideas regarding the success of business. It can be
recommended however that employees should share a flexible work environment with each
other. As a result, both the customers and the employees would get equal benefits and
facilities (Fosdick, 2012). Employees would like to show their interest to maintain a team
unity. As a result, customers would receive superior quality of services from the employees.
This very specific study has made clear overview on how an effective marketing plan and
policies leaves a major positive impact on the overall performance of business organizations. A
medium term marketing plan on made based on the financial and technological strength of Milco
. Milco is one of the most prestigious nutrition food and beverage companies occupying
immense fame and recognition in the market of Sri Lanka due to its superior quality of products
as well as services. This very specific study after making in-depth macro and micro-
environmental analysis has decided to make medium term marketing plan. Various forms of
marketing strategies are evaluated in this study. With the help of an approximate financial
forecast as well as promotional budget the marketing managers have made chronological plan on
how to introduce the brands and services in the global market. Based on the marketing strategies
the marketing managers have made estimated financial budget plan. A risk matrix based on the
marketing plan of Milco has also been portrayed for analyzing the risk factors.

31STRATEGIC MARKETING PLANNING
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