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Nutra Ingredients Target Market

by Suleman


Aims and Objectives

  • The main objective of this research to examine the present marketing strategy of the product that includes target audience, generic strategy and marketing mix
  • The study also wants to suggest a more comprehensive future strategy options for the product
  • Finally, the study would want to create a position of the product in the drinks industry in the United Kingdom.


            The study will utilize secondary research from different published materials and websites for the company background and product history.


The Daily Farmers of Britain Company had introduced a new type of drinks to the UK market that will cater the school children and their needs for healthy lifestyle. This drink has reduced sugar and probiotic yogurt drink named Wonder Cow. Wonder Cow has natural fruit, no preservatives, no artificial colors or flavorings (nutraingredient). Wonder Cow has less than five percent sugar and two percent fat, which means the drink strictly followed the new guidelines on products sold in school campus in UK.

Existing Marketing Strategy

            Target Audience

            Wonder Cow Yogurt drinks will target school children from 8-14 years old. The company is hopeful that they can beat sugar-laden fizzy drinks in schools campuses. According to Greco, Mazze and Michman, marketing aspects can be appropriated based on the information given and features such as product development, only a handful of those that can be impacted are competitive strategy and promotion strategy. Developing Wonder Cow Yogurt Beverages is focused on the knowledge provided by the focused school children’s lifestyle study that can meet customers’ needs and desires.

Nutra Ingredients Target Market

            Generic Strategies

            The second type of strategy is Porter’s Generic Strategies.  This strategy was developed by Michael Porter who argued that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation (Best, 2004). The Wonder Cow Yogurt is applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. The Dairy Farmers Britain applies this at their business unit level. They are called generic strategies because they are not firm or industry dependent. The following table illustrates Porter’s generic strategies:

Target Scope Advantage
Low Cost Product Uniqueness

(Industry Wide)
Cost Leadership

(Market Segment)

(low cost)


Nutra Ingredients Target Market

(QuickMBA: Strategic Management, 1999-2003)

Cost Leadership Strategy

Since the Dairy Farmers Britain (DFB) is a low cost company, generic strategy is very appropriate for them for being the low cost producer in the milk drink products industry for a given level of quality (Go, 2001). DFB sells its products either at average industry prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share. The cost leadership strategy usually targets a broad market.

DFB’s performance in cost control also has the following internal strengths: 1.) Access to the resources needed to make a large investment in manufacturing assets (Michman, 1991); this investment is an obstacle to entry that can not be met for several businesses. 2.) Expertise in the design of goods for effective development, such as using a limited number of parts to reduce the assembly phase. 3.) Strong degree of industrial process automation experience. 4.) Effective networks for delivery.

Each generic strategy, though, has its hazards, including the low-cost strategy. Some companies, for example, will therefore be willing to lower their prices. The market will be able to leapfrog the development capability as technology advances, thereby eliminating the competitive edge (Kotler, 2001). In addition, some businesses that adopt a concentration approach and reach separate narrow markets will be able to obtain an even lower cost within their divisions and capture significant market share as a company.

Differentiation Strategy

A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. The Wonder Cow Yogurt Drink is different from other dairy drinks because the drinks contain no preservatives and flavorings. The value added by the uniqueness of the product may allow DFB to charge a premium price for it. DFB hopes that the higher price will more than cover the extra costs incurred in offering the unique product (Anderson and Katz, 1998).

DFB in a differentiation strategy often have the following internal strengths: 1.) Access to leading scientific research. 2.) Highly skilled and creative product development team. 3.) Strong sales team with the ability to successfully communicate the perceived strengths of the product. 4.) Corporate reputation for quality and innovation (Avlontis and Karayanni, 2000).

Imitation by rivals and shifts in consumer preferences include the threats involved with a distinction approach. Additionally, in their business divisions, various businesses implementing concentration tactics can be able to gain much greater distinction.

Focus Strategy

The emphasis approach concentrates on a small segment and aims to gain either a cost benefit or distinction inside that segment (Berry et al, 1998). The idea is that by working solely on it the interests of the community will be best met. A business that employs a concentration approach also maintains a high level of consumer satisfaction, and this ingrained loyalty discourages most businesses from directly participating.

Companies following a concentration approach have smaller volumes and therefore fewer negotiating leverage over their vendors because of their limited consumer focus. However, when near substitution goods do not exist, businesses following a differentiation-focused solution will be willing to pass on higher prices to consumers (Bowers, Martin and Luker, 1990). Companies who are effective with a concentration approach are able to adapt a large variety of capabilities in product production to a very small consumer niche they know very well. Only this year in March 2007, Wonder Cow Yogurt Drink was first launched on the market. Since the Cost Leadership Approach was utilised by the company, it introduced the product in flying colours. The introductory yoghurt drink price is £ 0.07 UK pound.

Marketing Mix

The main objective of marketing is consumer loyalty. The business maintains the greatest possible prospect of ensuring long-term prosperity and strategic status by reflecting on the future (Chow and Holden, 1997). The company’s marketing mix is not only based on understanding the consumer’s interests, but the company is now widening its attempts to recognise its clients further by creating quality customer experience and advisory services. The development of the marketing combination is intended to ensure that different organisational objectives such as value, amount, appearance, credibility and return on investment are accomplished by the fulfilment of the wants and needs of customers. This reflects in the overall package of utilities that customers ultimately buy while choosing products and services, and concerns considerations such as price, design, advertisement, packaging and delivery networks.


The most essential element of marketing mix is the product; this includes the packaging and label, branding strategies, trademarks, and the product life cycles and new product development. The Wonder Cow drink is launched as reduced sugar and pro-biotic yogurt drink named Wonder Cow. Wonder Cow has natural fruit, no preservatives, no artificial colors or flavorings. It comes in 50 ml and 1 liter packaging both in tetra packs.


Prices of their products are from high to medium price rate depending on the package of the product model and the style of the product. DFB has the capacity to increase product prices depending on the economic demand to the market. Discounts are given when a customer will purchase a wide range of products and if the company will decide to have a cost reduction on their products.


DFB has been a multi level company so they are connected to many places world wide in doing their business function. They distribute their products to many countries therefore, if you are a consumer of DFB you can buy their products by means of retail or order purchase.


In compliance with the following rules, DFB gives approved media complete permission to reproduce these images. Photos should not be used for the marketing or selling of any commodity or technologies, nor may they be used for advertisement purposes or for use in brochures or other publicity materials.

Customer satisfaction is theoretically one of the most important tools that firms will utilise in their battle to achieve a strategic edge and succeed in today’s ever – competitive climate due to the consequences for sustainability and development (Lindenmann, 1999). Gaining consumer loyalty is also a crucial corporate challenge today, in addition to serving a strategic objective, particularly in this highly competitive and crowded marketplace due to the eventual profitability it can bring (Chow & Holden, 1997). Since consumers decide income, each business needs to maintain a regular consumer base, and how the customer is handled will rely on whether or not the customers will be faithful to the business.

The discussion that follows enumerates the (1) corporate objectives, (2) marketing objectives, (3) marketing communications objectives, and (4) positioning of Wonder Cow.

Future Strategy Option

All company entities are subject to many variables beyond the control of the sector that influence the outcome of their practises, and forecast their performance primarily, by and wide. With this, businesses consider such tactics, especially in the marketing environment, to preserve their competitiveness. Marketing has in reality, been known in the organisational world as a recurrent concept. Marketing provides the connection or bridge between the enterprise and the climate, as asserted by Lovelock and Weinberg (1984), shifting the business away from institutional stagnation towards responsiveness to consumer demands and expectation of ongoing environmental shifts. In brief, ads lets businesses accomplish their goal, making it important in a thriving industrial environment.

Strategic preparation includes any company process. Strategic strategies are used in communications with an intelligent analysis of the priorities of the organisation and the right approaches to accomplish them. The Strategic Marketing Strategy is shown to be the mother of all strategic instruments. It entails organisational elements such as an overview of the prior marketing campaign of the firm, a comparison of the rivals of the business and their commercial techniques, consumer patterns, development rates, and projections.

They become brand loyalists and champions as clients meet distinctive products that they want, promoting them to colleagues and peers. Wonder Cow drinkers would do the ads for Wonder Cows for it. In the case of Wonder Cows, this word of mouth helped to create recognition and brand loyalty before shops were established in new locations, minimising the period it took to become viable with any new store (Spreng et al, 1996).

Based on commodity alone most enterprises find it difficult to build some sort of sustainable competitive edge. It is common knowledge that any effective organisation has found and discovered a detailed understanding of how a customer-centered competitive advantage might be produced. David (2003) stressed the concept of not simply taking advantage of the competitive environment by changing how the commodity is sold, serviced and advertised at the user interface. It allows enterprises to make breakthroughs about how they engage with consumers and establish a form of communicating that gives customers an indelible image, one that separates them from others so thoroughly that it becomes a brand in itself.

New Product Development Process Model

It is possible to produce ideas that are distinct and special among rivals by means of new product creation. Thus, companies are able to conquer cutthroat rivalry by means of new product growth. Another impact of designing innovative goods for clients is to expand the consumer coverage of businesses (Crosby et al, 2003). The probability of attracting the imagination of other future buyers is enhanced by producing something that is exclusive to the market place. This in essence increases the coverage of the market or diversifies the company’s target market.

DFB should also focus their attention to some other aspect of the business, and these are:

  • Repackage Wonder Cow after 3 years being in the market to make it more look better.
  • Treat consumers as their own boss and focus on their feedback and needs.
  • Give more importance on corporate social responsibility.
  • Make sure new innovation in their products demonstrate high quality.

DFB should create this new product idea based on several factors. New product innovations would be embraced by a large demand, as observed from both desk and customer studies, raising the probability of a good product launch. Another justification for the production of new beverages is focused on the company’s objective of fulfilling the consumers’ expectations and desires (Degraeve and Roodhooft, 1999). Therefore the odds of the new product’s popularity can be improved by relying on this specific gatekeeper.

Another factor that should motivate DFB increasing local consumers’ perception of the value of healthier food is the development of this modern product concept (Denton, 1993). Normally, milk beverages should not fall into consideration as safe eating preferences are taken into account. By producing a food that suits the consumer’s taste and is safe for you the organisation hopes to improve that. This goal can be done by the use of soy milk as the chocolates main component.

Based from research findings, studies have shown that soy can help reduce cancer risks by up to 70% (Katsikeas et al, 2002). Through its pro-biotics content, yogurt helps in maintaining good health among men and women, providing defenses from hormone-related cancers such as uterine, prostate and breast cancer. Aside from cancer protection, the addition of pro-biotics increases the protein content of the yogurt drink. This then helps in balancing the nutritional content of the product between carbohydrate, protein and fat. The use of pro-biotics as the product’s main raw material is not a problem as the country is one of the largest producers of yogurts. These primary factors serve as the main reasons for the company’s determination to pursue the new product development.

As DFB intends to grow the business through new product development, the company conducted a consumer research that will determine the qualities and content of its new product idea. Market research is the gathering and analysis of information so as to determine and meet the needs of the consumers (Kim, et al, 2002). The market research is conducted primarily to lessen risks and help in making decisions about the new product. The result of the research is particularly advantageous in launching new products as thus ensure that the appropriate goods are manufactured.

Brand Bquity and Competitive Advantage of the Selected Company

Wonder Cow Drink must now be transformed into a more marketable confectionery product. In order to do this, the target market of the product should be identified and described. From the total market, the local yogurt drink market is around $360 million. From this figure, the market segment for yogurt drink is presently worth $ 9, about 2.5% of the entire drinks industry in UK. With the identified levels of confectionery consumption in the locality as well as the opportunity for growth in yogurt drink, DFB identified a gap within the local market for an introduction of a new yogurt drink product. Initially, the success of the launch of the drink by the company paved the way for a possible opportunity to create a strong school children market (Hessan and Whiteley, 1996). By concentrating on this target market, the company can successfully capitalize on the growing appeal and interest for yogurt milk drink. With the addition of the healthy approach, this new drink product will be able to establish itself on the school children market.

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