Milk Pak Mid

7/25/2019 Milk Pak Mid

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Group # 4 MBA-1 SectionC

Marketing

Management

Of

MILKPACK-T

HEKARACH

IDILEMMA

WAC

This case study is aboutthe problems faced bythe marketing managerof Milkpak Pvt Ltd. Thecase study listed theproblems face by the

company regarding dropin sales in Karachi,Dierent strategies usedto cope up ith them,competitors and nosimilar product and

aects their launch had

Lecturer!"mran "#a$


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n arac .


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Content Cycle

WAC

Written AnalysisCase

Study

Introduction

To Milkak

Case Study

Analysis

Su!!estion

"

eco$$endati

on

%usti&ications

Identi&ication

o& ro'le$s


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WAC

OfMILKPAK-THE KARCHI DILEMMA

Introduction to MilkPak Case Stud

T(is case study is a'out t(e pro'le$s &aced 'y t(e $arketin! $ana!er

o& Milkpak pri)ate ltd*Mr*+$er a,a*T(e case study lists t(e pro'le$s &ace

'y co$pany re!ardin! drop in sales in arac(i. di&&erent strate!ies used to

cope up /it( t(e$.co$petetitors and ne/ si$ilar product n e&&ects t(eir

launc( (ad on $ilk pack and its sales in arac(i*

T(e product Milk pack launc(ed /as 0o$o!eni,ed. (y!ienically-

packed. 0T $ilk. /(ic( it $arketed under t(e 'rand na$e Milkpak*t(e

0T process in)ol)es risin! t(e te$perature o& $ilk up to 142 de!reescenti!rade3s &or seconds* T(e $ilk is t(en &orced to pass t(rou!( a )ery

narro/ slit*

T(is process is called (o$o!eni,ation* Since 'e&ore t(at t(e only

source o& pro)idin! $ilk /as Ga/alla3s* So it /as a )ery di&&erent and ne/

t(ou!(t* acka!ed $ilk (ad added ad)anta!e o& 'ein! 'acteria &ree and (ad

a t(ree $ont(s lon! s(el& li&e unlike t(e $ilk pro)ided 'y Ga/alla3s*

Identification Of Pro!le"s

1* T(e &irst pro'le$ o& reduced sales in arac(i /as di&&erence in pri,es

as co$pared to 5a(ore* T(e price o& Milkpak /as s6- 4*27 in 5a(ore


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and s6- 2*27 in arac(i* Alt(ou!( t(is di&&erence /as &ully co)ered

Milkpak cost o& spoila!e. transportation to distri'utors and pay$ents

o& transport ta8es suc( as +ctori*

* T(e nd$a:or issue &aced 'y Milkpak /as to pay security deposits on

plastic cases in /(ic( Milkpak /as deli)ered and stored* T(e co$'ine

cost o& a$orti,ation and ot(er operation cost usin! t(e plastic crates

ca$e to rs *2 per liter. as a!ainst s6- ;7 per liters i& one /at card

'oard container /as used*

* T(irdly. t(e $ar!ins !i)en 'y Milkpak to its distri'utors and retailers

/ere lo/er t(an /(at co$petition o&&ered in arac(i* Milkpak3s

$ar!in to distri'utor /as rs *7 per liter in 5a(ore and rs*2 per liter

in arac(i*

4* W(ene)er Milkpak /as introduced to ne/ city. it /as supported 'y

e8tensi)e $edia ad)ertisin!* Milkpak (ad (i!(est ad)ertisin! 'ud!et

in t(e industry* Still t(ere /as tendency at $ilkpak to re!ard

ad)ertisin! as a super&luous e8penditure* Conse


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;* Mr* +$ar /as o& t(e opinion t(at $ilk /as !enerally re!arded as only

a tea /(itener in akistan* 0e also 'elie)ed t(at $ilk /as considered

!ood &or !ro/in! c(ild* It3s also +$ar 'elie& t(at consu$er could not

'e &orced to c(an!e eit(er t(eir (a'it or t(eir t(inkin! 'y t(e &orce o&

$edia* 0e t(ou!(t t(at $edia could only 'e used as a re$inder topurc(ase $ilk*

#ustifications

%usti&ication o& t(e &irst pro'le$ /as t(e &act t(at co$pany (ad to 'are

t(e e8penditure o& spoila!e and lon! distance transpiration* So t(e pri,e /asraised to $eet t(ese e8penditures* Milko 'ein!


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+$ar perception t(at t(e $oney t(ese people sa)ed. /as in)ested

eit(er 'usiness o& /as sent to Back (o$e so$e/(ere in t(e nort( o& t(e

country t(at is /(y (e (as started 'elie)in! t(at people pre&erred c(eaper

$ilk*

Analsis

7 to 47 o& Milkpak re)enue /as 'ein! spent in arac(i alt(ou!(

t(e transportin! and spoila!e /as an una)oida'le e8penditure 'ut it s(ould(a)e 'een acco$$odated &ro$ ad)ertisin! 'ud!et and t(e custo$er s(ould

not (a)e 'een $ade to pay t(e o')ious e8penses* T(at /ay t(e prices /ould

(a)e re$ained t(e sa$e in 'ot( t(e cities and since ad)ertisin! /as not

playin! a $a:or role in arac(i and cuttin! its 'ud!et s(ort /ould not (a)e

(ad any ad)erse i$pacts. creatin! a /in-/in situation*

Milkpak could (a)e use plastic crates rat(er t(an usin! plastic cases

/(ic( are less e8pensi)e t(ere 'y sa)in! re)enue t(e$sel)es as /ell as

(a)in! retailers3 to pay less re)enue and usin! t(at re)enue else/(ere to$ake t(e product and its $arketin! $ore e&&ecti)e*

Si$ilarly t(e t(ird pro'le$ /(ic( /as o&&erin! less $ar!ins to

distri'uters and retailers. occurred 'ecause o& $is$ana!e$ent o& re)enue*

0ad re)enue 'een in)ested correctly and in correct places. it /ould (a)e

'een $uc( easier to $ana!e suc( pro'le$s*

T(e ad)ertisin! ca$pai!n took $a:or part o& re)enue !enerated.

/(ereas t(e $ana!er /as a/are o& t(e &act t(at $edia /asn3t playin! a )ery

e&&ecti)e role in pro$otin! $ilkpak* I t(ink a separate ad)ertisin! ca$pai!ns(ould (a)e 'een desi!ned &or arac(i. !i)en t(e ot(er di&&iculties $ilk

pack /as already &acin! in t(is particular city*

5astly. t(e $inute co$pany (as reali,ed t(at sales are !oin! do/n in

only arac(i city. ne/ strate!y s(ould (a)e 'een laid &or t(is particular city*

Dor e8a$ple. spendin! o& re)enue s(ould (a)e 'een altered 'y lo/erin! t(e


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standard o& e)ery product acti)ity and ca$pai!n t(at /as not directly

a&&ectin! t(e


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In $y opinion +$ar needs to try so$et(in! ne/ or inno)ati)e so t(at

people 'uy Milkpak products* T(ey pre&erred Milkpak ot(er t(an ura Milk

or Dres( Milk* 0is 'elie& &orcin! (i$ to !i)e up and try &ocusin! ot(er

$arkets and t(at3s t(e $ain reason (is $arketin! strate!y /as scre/ed in

arac(i* 0e needs $oti)ation so (e t(inks $ore positi)e &or t(e $arketin!

strate!y in akistan*

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Milk Pak Mid