Vereia

Table of Contents Research of the Product and Competitors 3 Consumer Research 5 Placing and pricing the product 15 Segmenting, Targeting, Positioning and Product strategy 17 Promotion strategy and visualization 20

Research of the Product and Competitors

Introduction:

Vereia is natural Bulgarian yoghurt. There are three different types of this yoghurt. These types varieties of fat percentage: you got 4.5%, 2.9% and 0.1%. This yoghurt guarantees quality yoghurt without the use of preservatives. It`s also carefully selected milk, controlled all the way from the farm to the consumer. The yoghurt contains Lactobacillus burglarious unique culture, Lactobacillus is natural product, where the yoghurt is made of, without it is not natural. And as last it has a delicious taste and a magnificent structure.

The sponsor of our product is the United Milk Company. It is one of the leading companies on the dairy products market in Bulgaria. They have over 50 years’ experience of milk processing. They produce a wide range of products like milk from cow, sheep and goat.

The Dutch customers can expect of Vereia Yoghurt, a traditional Bulgarian taste, the best quality of yoghurt and with a small amount of fat on the Dutch market. The price of Vereia yoghurt will be better than the competitors, because of a low purchase. It would be a good affordable product for all Dutch consumers.

Location of the product group

in our observation in “Albert Heijn” we found that yogurt and other milk products are possessed at the center of the shop with all other products that require low temperature.

Opinion of the location of the product group

In My opinion Albert Heijn uses good placing strategy because they place most of the expensive products at the higher shelves, the products that are in promotion at middle shelves and cheaper products at lower shelves. I think this is a good placing strategy because customers easily can find this product group, and they are attracted from promotions and variety as well.

Information about product placement

The shelves at supermarket that we observed are about 1 meter wide, 2 meters high and 30 centimeters deep, which makes what suitable what a lot of people want to buy at the same time.

Where the different brands located on the shelves are and roughly how much space do they have; if there are private label brands where are they located?

All of the brands occupy the same shelve space. The more expensive ones are at high shelves and “Albert Heijn” private brand is located at Center because they want to promote their brand more than other ones and for that make it easier for the customers to take from it.

Description about promotion for certain brands

The promotions in supermarkets like this are most often two types. One is by reducing a little bit from the price and other one is like offering 2 on a price of 1. This type of promotion strategy is very good because it builds relationship with customers and products to be available and affordable.

List of the prices of the different brands.

“Milsani roeryoughurt naturel” – 0.39euro which is cheapest one
“Albert hejin Roer naturel” – 0.86euro which is middle one Greek yoghurt – 1.99euro which is the most expensive product from this product group in this supermarket

Competitors packaging research and description

Most of the brands use almost the same packaging – white and blue pails. There are only few that has a package in cardboard boxes but there the variety in colors is bigger. In my opinion strategy with white-blue pails packaging isn`t very good because it became hard for the customers to recognize it and to search for it next time, and on the other side using packaging with fresh and nice colors will make your product very recognizable and easy to remember.

Information provided on the package of the different brands

Brand name, producer, date of production, information of the content of the yogurt, quantity of a product percentage of oiliness, date of expiration, quantity of a product, place of production, recommended temperature, way of consumption, promotions(if there is)

Needs and wants that our product is satisfying

The product aim is to satisfy the physical needs such as hunger and thirst.

A discussion of the type of market concept involved

The importance of knowing customers’ needs and preferences makes marketing concept mostly connected to the product.

A description of four companies that manufacture this product.

Natuurhoeve is a company who started in 1977 as a little cheese company. The production was focused on cheese, which was made from milk from cows from the company. Through the years natuurhoeve started making other products like yoghurt.
Actimel is a diary product with a unique good bacteria Lactobacillus casei Defensis. These good bacteria are exclusive selected by actimel for the favorable effect on the resistance.
Activia is yoghurt who has bacteria who improves digestion in a natural way.
Optimel is a company who uses less fat and less sugar, this will automatically make sure you will get fewer calories.

Consumer Research

The Dutch Income Distribution In most OECD-countries income inequality has increased during the last two decades. We investigate to what extent changes in the overall distribution of incomes can be attributed to social policy measures. The case for the Netherlands is particularly interesting, because the Dutch welfare state has been reformed rather fundamentally in recent years. The budget incidence analysis indicates that in the period 1981-1996 inequality of adjusted disposable household income increased sharply. The main force behind this phenomenon was a more unequal distribution of market incomes, but social transfers also explain a substantial large part of the rise in inequality. Social security reforms indeed seem to have made the income distribution less equal. The results of a more detailed analysis for 1996 on the redistributive impact of social policy and of specific social programs - using data from an unique income panel survey - can be summarized as follows: - The first five income decides clearly gain from social security, while the higher decides loose. Social security causes a reduction in inequality by 26 to 50 percent, depending on the indicator used. - The public old age program and the social assistance program explain by far the largest part of redistribution by the social system, while the disability and unemployment programs do not have strong redistributive effects.
The Dutch Education Levels
A striking feature of the Dutch educational system is the multiformity. The biggest difference between other countries might be that there are already several difficulty levels in secondary school; there is no high school in The Netherlands, there are several kinds of high schools. After primary school, children go to a secondary school that is adapted on their performance and intelligence.

If you want to study in The Netherlands (as a foreigner) you can attend a 'universiteit' aka 'WO' or a 'hogeschool' aka 'HBO'. According to most dictionaries, both institutions mean 'college'. But why do the Dutch have two designations for college? And what is MBO? Is it possible to attend an MBO study when you are an exchange student?
In this article the differences are explained.
Universiteit/ WO- The Dutch word 'universiteit' (university) doesn't refer to college in general. The word 'universiteit' (university) is protected by the Dutch law. Only the educational institutes who offer academic studies (physics, biology, psychology, philosophy, language science, law, etc.) are allowed to call themselves 'universiteit'. In contrast to HBO's, which are professional bachelors and masters, a universiteit prepares students to become an academic (MA/ M.Sc/ M.Phil or Ph.D). The universiteit institutes, also known as WO, have two goals: academic research and educating students to become an academic researcher. Dutch universities have a good reputation and some of them have a ranking in the top 100 of the 1000 best universities in the world. But graduates are not as good prepared for the job market as HBO graduates. HBO/ hogeschool
HBO's are institutes for higher professional education. Typical HBO professions are journalist, primary/ secondary school teacher, law assistant, conservatory musician, artist, social worker, electrical engineer, manager, etc. HBO schools have a good reputation and because graduated students did a lot of practicals, they already are experienced when they enter the job market.
MBO
MBO schools are institutes for intermediate vocational education. Because the secondary school that gives access to MBO (VMBO) is shorter than HAVO and VWO, MBO students are younger (16-21 years old). Typical MBO jobs are commercial assistant, security guard, graphical designer, car repair technician, teaching assistant, youth worker, secretary, cook, etc. There are several levels of MBO education. Graduates of the highest MBO level are allowed to study for an associate’s degree. They are also allowed to attend an HBO bachelor after their graduation.
Not all the Dutch consider MBO students as 'real students', because of the lower level and the practical subjects. This is probably because of the bad reputation of some MBO schools. Nevertheless, many MBO's require a lot of work and talent of their students. You can only attend MBO as an exchange student if you speak Dutch.

The Dutch Age Distribution

Age and sex distribution for the year 1990;

Age and sex distribution for the year 1995;

Age and sex distribution for the year 2005;

Age and sex distribution for the year 2005;

Age and sex distribution for the year 2005;

According from the information above it becomes clear that at the age of 40-50 the Dutch customer is most active, and firms could make biggest profit from him despite from the other ages. That is changed from before 20 years where the most active customers group is between 20-30 years old.

The Dutch Household types and developments

More than half of Dutch population live in family setting with children
The number of singles continues to grow: in 2050 more than 20 percent of the Dutch population will consist of singles, as against 15 percent in 2006. A majority of the population (56 percent in 2006) live in a family setting with children, but that proportion is anticipated to drop to just over 50 percent in 2050.

Persons living in households

Fewer households with children in 2050
Last year, there were 2.5 million households in the Netherlands with children living at home. The majority (2.1 million) were (un)married couples with children. In addition, there were 450 thousand single-parent families. The number of households with children is anticipated to decline to 2.4 million in 2050. The number of couples with children in particular will diminish, while the number of single-parent families with children will rise to 487 thousand.
Household’s

Marginal majority of families have two children
Families with two children living at home are marginally more frequent than families with one child living at home: 42 and 40 percent respectively in 2006. With 60 percent, the proportion of single parents with one child is distinctly higher.
Fewer large families
The number of large families (three or more children) has nearly been halved since the 1970s and the decline will continue in the decades to come. Last year, 17 percent of families with children had three or more children living at home. In 2050, 15 percent of families will have three or more children.
Families with children

Fewer families with young children
In nearly 900 thousand families, the youngest child was under 6 years old in 2006. This amount corresponds to more than one third of families with children.
In 2050, a reduction by 90 thousand relative to 2006 is anticipated. The number of families whose youngest child is 18 years or older, on the other hand, is expected to increase by 40 thousand.

Families with children by age of the youngest

The Ethnic background of people living in The Netherlands

The Dutch people are the dominant ethnic group of the Netherlands. They share a common culture and speak the Dutch language.
Dutch people, or descendants of Dutch people, are also found in migrant communities worldwide, notably in Suriname, Canada, Australia, South Africa, New Zealand, and the United States.
The traditional art and culture of the Dutch encompasses various forms of traditional music, dances, architectural styles and clothing, some of which are globally recognizable. Internationally, Dutch painters such as Rembrandt, Vermeer and van Gogh are held in high regard.
The dominant religion of the Dutch is Christianity (both Catholic and Protestant), although in modern times the majority is no longer (openly) religious. Significant percentages of the Dutch are adherents of humanism, agnosticism, atheism or individual spirituality.
In the Middle Ages the Northern Low Countries were part of the periphery of the Holy Roman Empire, and the various territories of which they consisted had de facto become virtually autonomous by the 13th century. Under the Habsburgs, the Netherlands were organised into a single administrative unit, and in the 16th and 17th centuries the Northern Netherlands gained independence from Spain as the Dutch Republic. The high degree of urbanization characteristic of Dutch society was attained at a relatively early date. During the Republic the first series of large scale Dutch migrations outside of Europe took place.
The absence of most natural riches in the region traditionally inhabited by the Dutch, led to a trade-oriented, and trade-dependent, society. Positioned among some of the most important rivers of Western Europe and near the sea, Dutch cities dominated European and even world trade for more than a century, lending the Dutch themselves a reputation for being excellent merchants, and, at times, even being synonymous with the word itself.
The Amount of money spent on Yoghurt

Location of Dutch Stores
Dutch households spent an average eleven thousand euro on shopping and eating and drinking out in 2000.
Household spending in shops, restaurants, pubs etc. 2000

Money spent in all kinds of outlets
Nearly thirty percent of Dutch household spending in the category shopping and eating and drinking out was spent in supermarkets. Clothes shops, petrol stations and restaurants and pubs accounted for nine percent of consumers’ money spent in this category, while five percent was spent in shops selling home furnishings and just over three percent in department stores. The remaining purchases were bought in smaller shops such as butchers, florists or greengrocers.
Most food bought in supermarket
Households spent an average 4,100 euro on food in 2000. Over half was of this amount went into supermarket tills. Twenty percent of money spent on food and drink was spent in restaurants, cafés, bars and pubs; this includes money spent in company canteens. The remaining amount was spent in butchers’ and greengrocers’ shops and in off licences and on street markets.
Spending on food by type of retail outlet, 2000

Development in the amount of free time available

What do Dutch people aged over 12 years do with their time? Out of the total 24 hours a day, ten hours are spent on sleeping, personal hygiene and eating; six hours on free time activities, and about three hours are used for care of others, housework and volunteer work. Paid labour accounts for two and three-quarter hours, travelling to and from work, education and the shops takes up nearly an hour a day.
Time use per 24 hours

Trends in Dutch society

Until the sixties a salient feature of Dutch society was its 'pillarization', the segmentation of society in religious and secular blocs and subcultures. Each bloc had set up a whole array of organizations encompassing practically every sphere of social life. In the last three decades a number of both structural and cultural developments set in a process of depolarization. Based on longitudinal Dutch survey data -- covering the 1958-1992 period -- subjective identification with formerly pillarized ideologies is analyzed. It is found that identification has indeed diminished substantially, though primarily with religious ideologies. This article primarily addresses the issue of whether deconfessionalization or de-ideologization is the prime mover behind the decline of pillarized ideological identifications. It is found that in the first stages of depillarization deconfessionalization of Dutch society induced a process towards a decline of pillarized religious self-perceptions, while identification with pillarized secular attitudes remained rather stable. In more recent years de-ideologization became more prominent. Furthermore, it is observed that changes in ideological self-perceptions are particularly to be found among confessional groups who have become both smaller in number and less convinced of beliefs and behaviors traditionally linked with pillarized ideologies.

Consumer Survey ‘’Vereia’’
Age:
0 – 20
20- 40
40- 60
60 +
Gender: Male/ Female
How many times do you eat yoghurt in the week? ( if you never eat yoghurt the survey is done)

0
1 à 2
3 à 4
5 à 6
7 +

When do you eat yoghurt on the day?

Breakfast
Lunch
Dessert

What kind of yoghurt’s do you prefer?

Drink yoghurt (drink yoghurt)
Plain yoghurt (volle yoghurt)
Yoghurt ( magere yoghurt)
Yoghurt with fruit in it other What is your Favorite yoghurt brand?
____________________________________________________________
Why do you like that brand the most?
____________________________________________________________
What made you decide to buy your favorite brand for the first time?

Heard from a friend
Tv commercials
Sample

What are you willing to pay for a good yoghurt of 1liter?

€0.50 à €1.00 €1.00 à €1.50 €1.50 à €2.00 €2.00 +

Do you think a new yoghurt brand will be succeeded on the Dutch market?

Yes
No

Do you think Vereia is a good name for our yoghurt in the Dutch market.

Yes
No

If not, what kind of name do you think will do?
________________________________________________________________

Results of The Consumer Survey

Placing and pricing the product

Major Competitors prices
We first have to start with knowing our major competitors, Because of earlier Research, we decided Danone, Optimel, Zaanse Hoeve, Campina and Friesche vlag are our major competitors in the dutch market. All our competitors have products similar to our yoghurt, off course do these brands also have a lot of other yoghurts not similar to our product.

Brand | Price | Gram | Danone | € 1.69 | 500 | Optimel | € 0.88 | 500 | Zaanse Hoeve | € 1.34 | 500 | Campina | € 1.39 | 500 | Friesche Vlag | € 1.22 | 500 |

Market type and the consequences

Our brand’s yoghurt falls into the dairy market. We have 8 different yoghurt brands. Danone, optimal,zaanse hoeve, compina, Friescha vlag, Mona, AH huismerk, Vifit and others.

The market share of the yoghurt market in 2010 (percentages) Nice picture, SOURCE?

External Influences

Economic conditions like recession, inflation, and interest rates can have a strong impact on the firm’s pricing strategies. Yoghurt is made is an dairy product, these products are made by milk from a cow. So when something happens with Farmers that are suppliers of milk to yoghurt manufacturers, such events can lead to a price increase. So if an cow disease appears the prices of yoghurt will definitely increase, or when the government of the Netherlands will increase the tariffs of having cows.

The Yoghurt Distribution Channel
The distribution channel of our product Is a big channel with a lot of retailers, If we would describe our product chain. It starts at the farmers, than goes on to the diary factory, distributor and then to the retailer. The farmers produces the milk, diary factories makes the yoghurt from the milk, the distributor put his or her brand name on the product and services and sell the product further to the retailer, the retailer is for our product are supermarkets and the supermarket sells the yoghurt to the consumer.

Product Pricing
We have to use cost-based pricing—setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for effort and risk—after the initial fixed costs of acquiring machines to produce the yoghurt, cost of raw milk, the other ingredients, packaging, labor and transport. If we assume that we will sell 400,000 trays of yoghurt in the first year and you rent a factory of 100,000 euro a year your fixed costs are already € 0.25. say we buy a 100,000 kg milk at a cost of € 25,000(100kg for € 25), other ingredients another € 25,000, packaging costs € 12,000( 400,000*0.03), labor 3 people working at 40K a year so €120,000 a year and €5,000 transport costs. So 100,000+25,000+25,000+12,000+120,000+5,000=€ 278,000
278,000/ 400,000 = €0,695 per tray yoghurt. So the minimum price is €0,70 per product to play quit.

Costs Influence, by logistics and other external factors
The cost price can be reduced by improving the logistics system. The major logistic functions include warehousing, inventory management, transportation, and logistics information management. We have to design a simple, accessible, fast and accurate process for capturing, processing and sharing channel information. So we have to use integrated logistics management, that emphasizes teamwork, both inside the company and among the marketing channel organizations, to maximize the performance of the entire distribution system.
So if we can get better relationships with our channel members, the teamwork will improve and that will result in lower costs for all the channel members that will finally result in a lower cost price for the consumer.

Distribution objectives and strategies
Our client has to have an as smooth as possible logistics system by getting as less transport as possible between the links in de product-chain. So the objective is to locate the yoghurt factory not to far from the farms who supply your factory.
So now we have to choose out of conventional distribution or vertical marketing system. We have to choose VMS because it is a distribution channel structure in which producers, wholesalers and retailers act as a unified system. One channel member owns the others, has contract with them, or has so much power that they all cooperate. when Vereia achieves this kind of marketing system they would manage to collaborate with different channel members at a high level, and it will be a lot cheaper for all channel members.

Retailers
The type of retailers that we would suggest to our client are Specialty stores, Supermarkets and Convenience stores and superstores. First of all, in Supermarkets almost everyone buys his yoghurt. Second, specialty stores can retail Yoghurt as well, but we do not think a lot of people will go to an specialty store for just a tray of yoghurt. At convenience stores it would be a good option, because there are still a lot of convenience stores in neighborhoods, where people just buy things because it is easy and fast, so if consumers are in a hurry. We can also put the yoghurt in supermarkets in superstores. We would let the yoghurt retail by all Albert Heijn’s and specialty stores and small convenience stores can contact us for our products.

Non store retailing promotion
Non-Store retailing means that you don’t go to a retailer to buy a certain product. For example online shopping is an example of non-store retailing. We think that our product can be sold by using non-store retailing by a certain degree. We think we can sell it online with Albert Heijn online, but this is the only kind of non-store retailing we think we can use. Because we think yoghurt is not a very suitable product for non-store retailing, and we think if we sell yoghurt online via our company it would not be a success, because we will sell to less yoghurt to make online distribution profitable.

Price suggesting

If you look at the competitors prices the average price is between €1,22 and 1,68 a 500 gram. And with my calculation of the costs per product of €0,70 I would suggest to put the price on €1,10 because it is lower than the competitors and €0.40 higher than the cost price. You would have a markup of 40/70*100 = 57%

Price promotion

We would advise price promotions, because my client’s product has first to be introduced to the Dutch market and people will buy it faster if they can get it cheaper. The supermarket will normally promote the product as well so I would not encourage my client to put too much effort in promotions.
Segmenting, Targeting, Positioning and Product strategy

Market segmentation
The market of our product group has more than one segmentation variable. Demographic segmentation is the most important one, because almost everyone in the Netherlands eats yoghurt as an desert, just like that almost everyone drinks an glass of milk in de the morning during breakfast. So it´s part of the Dutch culture. Some of our competitors also focus on age, when I was in the supermarket a few Yoghurts had promotions with, some sort of stickers they get with the yoghurt when they buy it. Also a lot of Brands segment their yoghurt into gender and the positive effects off eating the yoghurt, like Danone´s Activia. So a lot of people who try to lose weight, or have problems with digestion eating Activia because they say it works. The market of our product group is also segmented for regular users of this product, because most of the manufacturers try to make their yoghurt so cheap as possible.

Information about focused target group
So what I already mentioned in the answer of the question before this one, Is that you can focus on a few target groups. The biggest target group is the group of woman who try to lose weight. A lot of Competitors use their ´´Magere Yoghurt´´ so that is an yoghurt with a low percentage of fat. But you got as well the target group of Childs, who like to eat yoghurt as dessert. So I think this are the two most targeted groups the suppliers in this market focus on.

Research about chosen particular target groups
The manufacturers have chosen this particular target groups because the segments are easy measurable. The size and purchase power of these two target groups are easy to find. Parents with young children always give their children what they like because otherwise the children become annoying. The people who try to lose weight is an big group of people who every year try it again as an good intention, so this is an group who will exist for an long period of time.

Strengths and weaknesses of our competitors
The main strengths of our competitors are:
That they are already good established on the Dutch market
Our competitors have already positioned their selves, Everybody already know their brands.
They found some good measurable segments
Some of our competitors use the marketing concept, they know what the consumer wants and needs, and with that idea in their minds they produce a high quality product.
Most of our competitors use the production concept, they think that consumers will favor products that are available and highly affordable.

The main Weaknesses of our competitors are:
Don’t have anything like our Bulgarian Yoghurt
Most of our competitors doesn’t make use of good promotion

Highlighted strengths of suppliers
The majority of the suppliers uses the production concept so they try to produce an as cheap as possible product that has high quality and low price at the same time. And there is an Minority that uses the marketing concept by selling their product as an way to lose weight because of the low fat percentage.

Research about further distinguishing of the suppliers
The competitors are I think already in a stage that the continue of distinguishing has slowed down, the majority has chosen for the winning value proposition; more for less, that means that they produce a good quality yoghurt for an very low price. I think the minority of our competitors are able to continue to distinguish their selves because more and more people are getting overweight and trying to something against it.

Value of the target group
I think that our competitors target group has a high value. In Holland are 2,535,114(CBS) households with children so it is a very big target group with a lot of money to spend. The other competitors targeted people who want to lose weight, that’s a big gap in the market as well because in the Netherlands 47,2(CBS statline) of the population has overweight. So I think this can be strength, until someone invents something that solves all the overweight problems.

Segmentation and target group for our product
I would segment the Dutch market focused on people with overweight and maybe because of the low production costs in Bulgaria it could as well take a place as a low price with good quality yoghurt.

Characteristics of the consumers
Our Target group would be generally people with overweight because 47,2 percent of the Dutch people has overweight it is an large and profitable segment to start in. A lot of people have good intentions; so they try to lose weight, most of the time by trying to eat less fat. People will see Vereia that contains a very small percentage of fat as an product that is cheap and good for their overweight at the same time, that will differentiate Vereia with the competitors because the yoghurts who have an small percentage of fat or quite expensive and Vereia is not.

Recommendation about positioning
I would advise my client to position Vereia yoghurt as a tasty, high quality with low fat percentage and highly affordable yoghurt. People will get that in their mind and will love Vereia like they never loved yoghurt.

Choices about regarding our product – varieties, flavors, adaptations for the Dutch market
Our product has three varieties in fat percentage and a lot of different tastes, I think Vereia has to start with low fat percentage yoghurt and with all the flavors there are. The only thing that Vereia has to change is the package; the package now in Bulgaria is just a plastic tray. And I think it would be better to get them in cartons of a liter and in small plastic squeeze bottles, just like Breaker from frieze vlag.

Brand name
Finding the best brand name begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. Vereia has enough Desirable qualities to just hold the name that they have. Vereia is easy to pronounce, recognize and to remember, the name is distinctive, extendable, can easily been translated into foreign languages and is capable of registration and legal protection
Promotion strategy and visualization

Objectives and target groups of communication by competing manufacturers
The main message of my competing manufacturers is still making a high quality, tasteful yoghurt. So the main reason why people still buying yoghurt is that they just like to eat yoghurt. Of course there are a few exceptions, for example Danone Activia’s message the their target customers is that, Danone Activia is very healthy and is good for your stool, so people who have some problems with their stool are here the target group. The message of Friesche Vlag breaker is that you can eat your yoghurt when and everywhere you want. The objectives of all these Yoghurt manufacturers are of course to sell as much yoghurt that is possible.

Research and description the messages / advertisements, used by other manufacturers
So what I already told in my answer at the last question is that every manufacturer just tries to describe their product as a tasteful, high quality and healthy yoghurt. Optimel Yoghurt that’s their yoghurt a fresh, tasteful, 0 % fat and without any added sugurs. In Danone Activia’s message, they describe their yoghurt as delicious and good for the digestion. Campina actually says nothing more than that their yoghurt has a good taste. And finally in the last commercial of the Friesche Vlag Breaker, you see an motor crosser doing a stunt and while he is doing his stunt he is drinking his Friesche Vlag Breaker. So with this commercial, Breaker tries to tell the consumers that you can drink their drink yoghurt at every moment of the day.

Promotional tools used by principal competitors
The principal competitors uses advertising, sales promotions and direct marketing. With advertising they can reach masses of geographically dispersed buyers at a low cost per exposure. These large scale advertising says something positive about the seller’s size, popularity and success. Sales promotion, our competitors try to attract consumers with a wide assortment of sales promotion tools: coupons, contests, cents-off deals and premiums. With these tools they attract consumer attention, offer strong incentives to purchase and can be used to dramatize product offers and to boost sagging sales. Direct marketing, they use direct mails, catalogs, and online marketing to persuade the customers to buy their product. Direct marketing helps them with building one-to-one customer relationships.

Communication target group and communication objectives
With Vereia we have to communicate that we produce high quality yoghurt with a low fat percentage. So yoghurt that prevent people of getting fat and still loving the taste of the yoghurt. So our target group will be people who like the taste of Bulgarian yoghurt and care about their weight.

Communicational message
The message that we will communicate is that Vereia is a pleasure for your taste mobs without having to fear you are getting fat. The real message would be: “Try It! = Love it!”

Promotional tools used
Vereia has to use advertising in a way of television commercials and has to use sales promotions. Through the television commercials consumers get aware of Vereia and with the sales promotion consumers getting in contact with Vereia and will discover that it is a brilliant yoghurt.

Communication budget needed
Average cost of broadcasting a commercial that lasts 30 seconds, costs around € 2,000 which has an average of almost 2% viewers aged six years and older. So if Vereia broadcasts some 100 commercials to get the customers aware of Their yoghurt, they spend € 200,000 only on commercials. Than the sales promotion, we would bring out 50,000 coupons at a price of € 75,000.

Sells
I expect my client will sell one million yoghurts on the Dutch market in the first year. So when my client sells 1,000,000 at a price of € 0.75 the will make a revenue of €750,000 so minus there production costs, salaries and promotion tool costs my client will make a nice net profit.

Communication program results
The best method to measure the results of the communication program is to ask the customer to give their opinion. So we can use our website or an survey to measure the effectiveness of the communication program.

C. Visualization

This flyer will do its thing because its attractive, provides good information and shows what our product actually is.