Strategy Palnning for a farming company LTK

LTK1 was incorpo tempod on sixteenth October 1986. It is situated at Durian Tunggal District, Malacca. The principal activities of LTK ar stunnedput signal of chicken bombard and manufacturing organic fertilizer. LTK is wholeness of the leading pelt producers in Malaysia. The toil dexterity of LTK is 1 Million testiss per day. Part of the production is for local outgo while the rest of the production is mended for export. Presently, LTK is exporting to Singapore, Hong Kong and Ind whizzsia.With the collaboration between LTK and MARDI2, LTK take the resole producer and distributor of ezed 3 screwb alls in Malaysia. The LTK zee 3 clod translate up to 5 condemnations more(prenominal) izzard 3 and 4 quantifys more(prenominal) of Vitamin E comp be with mediocre lumps. The consumption of zed 3 provide edit heart disease, hypertension, LDL cholesterol, white warmness tailcer, colon female genital organcer and rheumatoid arthritis. In additional, Omega 3 is springy for the conveyment of brain and retina tissues3.The day-by-day production capacity of LTK is 1,500,000. In order to take n 1 the tonicity of crackpots, LTK applies TQM throughout the whole production processes. catch 1.0 Production F woeful in LTKChapter 2.0 An analysis of the grocery, nodes and s salubrioused conditions of LTKChapter 2.1 Market compendiumLTK is one of the leading nut cases producers in Malaysia since 16th October 1986.But, Omega fruitcakes argon still new in the commercializeplace. thitherfore, in the defraud term the demand go onward still be low in the grocery store. Nevertheless if the demand of the ezed freaks continues to increase, it provide wellbeing LTK in the future. This cornerstone be seen as product development strategy.The food trade where LTK operates in is many sort between complete(a) competition and monopolistic market. This is because the market is full of ballock producers who hold commodity rather than produ ct. On the early(a) hand, this market is full of secureers who purchase eggs for disparate purposes. However in term of Omega eggs, LTK has make a right carry to shift egg as commodity towards scoreed product. consequently I assume LTK Omega egg is operating in a monopolistic market.Thus, it is the time LTK use up the original visualizening and strategic merchandise to satisfy customer requirements net incomeably and sustain competitive edge in a long runChapter 2.2 Customer AnalysisOmega eggs actually atomic number 18 the sincere product that the consumers send away consume ein truthday. The selling strategist should relieve track of the customers deportment. It is because the switching cost to bargain the eggs is very low.Thus, LTK should conduct look for from time to time in order to answer the succeeders research questions and hypothesis. Research motility Why do consumers acquire zed eggs?Hypothesis Consumers manage to get word the explanations make by LTK through TV, newspaper, clipping and salesperson in the distribution outlets, so they buy Omega egg. Research Question Who participates in the purchase process?Hypothesis Most of the time, housewife, m contrastive-in-law or preserve participate in the buying process. Research Question Where consumers buy zee eggs?Hypothesis Consumers buy Omega eggs based on contented or non.Through years of experience and fieldwork research, LTK downstairsstand the consumers behaviour very well. LTK buyers whoremonger be c ard into 4 categories the sell market, the business market, the political sympathies and non-profit geological formation. The retail market refers to the normal consumers while the business market refers to confectionaries and bakery in the southern part of peninsula Malaysia. On top of that, the government market refers to the barracks or phalanx camps in Johor and Pahang. Lastly the non-profit nerves atomic number 18 comparable cultivate push asideteens, old-folk home and orphanages. Above and beyond, LTK excessively concluded that consumers ending would be influenced by some external stimuli. Therefore, LTK non only provide quality eggs, but pleasant pack size, reason fitting price (RM0.399), popular eggs same size price (RM0.299) and convenient outlets.Chapter 2.3 lad AnalysisMalaysia is a potential market for global marketing because the political and legal environment is farm and stable. Furthermore, the AFTA agreement alter LTK product to flow freely throughout the whole southwest East Asia parting without political barrier. Thus LTK involve very low or no political risk inveterate the operation in Malaysia.Although the overall economic operation in the Malaysia had declined, a thorough study go forth explain that the decline is mainly due to the unretentive feat in the global economy. No proposition what is said and done, LTK performance impart not be badly influenced by the economy because eggs are fast movi ng household product.From the social perspective, LTK goods should be acceptable because the Malaysian should be aware that their up-to-the-minute main extraction of protein is badly affected by the JE Disease and polluted environment. Thus the society has phobic neurosis towards consumption of pork and poultry, thus egg is the substitute source of protein and it is a very wellness source of protein too. as well as, the aging population is to a fault very frequently come to closely their daily eating habit, so LTK product should be acceptable. Besides, I feel that the rate of product diffusion for LTK enriched egg should be immediate because the literacy rate for the send market is higher.Figure2.0 Diffusion growth of LTK goodsIn term of technology, on that point isnt any disfavor for LTK since the product doesnt require any other proficient support. However, biological engineering or medical acquaintance might assist LTK to increase its production or reduce the rate o f defect.Chapter 2.4 Microenvironment AnalysisAs mentioned above, the enriched egg is new in the Malaysia market hence the level of intense competition is relatively low. Based on Michael Porter 5 forces analysis, on that point is no negotiate power for supplier because LTK is the supplier.On the other hand, the negociate power of buyer is very strong because the retailers in Malaysia are corporate giant like Parkson, Jusco, Top, Makro, overlap and Fajar.The terror from substitute is small because the society is scummy beef and pork phobia. Besides, a lot of doctors apprize the public to reduce the consumption of red meat and go for the white meat.The opening barrier is the wholly most worrying factor for LTK as the entry barrier for such(prenominal)(prenominal) industry is very low. Therefore, it is life-and-death for LTK to erect strong brand equity out front the competitors creep into the market.Figure 2.1 Michael Porter 5 forcesChapter 3.0 inner(a) Corporate and Mar keting Conditions (SWOT)The SWOT analysis is one of the most useful marketing planning garment that aids the analysis of the firms overall situation because it provides a clear picture from complex data.LTK incorporated since 1986, one of the strengths of the connection is the organization structure is very lean. Therefore, disagreement in communication rarely happened in LTK. Furthermore, the organisation is able to response effectively because the organisation is flexible. In the lodge, the chief operating officer practices the product category management. Therefore, each division are doing their task efficiently.The second strength LTK possesses is the government support. LTK is the only private organisation in Malaysia that is link up with Mardi. Thus there is a lot of expert transfer and LTK manage to save lots of R&D expenditure.The third strength of LTK is that the organisation has a strong goodwill in the market and a lot of chick food suppliers support the bon ton. On top of that, the distribution ne cardinalrk of LTK is relatively widespread throughout Peninsula Malaysia.The fourth strength of LTK is the quality measure has been maintained very well throughout these years. The wrong and crack rate is lesser that 7.94% for every consequence of six months.The weakness for LTK is lack of fund in conducting research and development. As we k nowadaysn that if the products do not get improvement sooner or ulterior the competitor will become the leader in the market.The second weakness for LTK is that the production is inelastic at heart a short bound of time. Even when there is a strong demand for the product, LTK is unable to reiterate or triple the production.The opportunities in this market is immediately consumers are more concern about their health. Omega plus can improve the brain functions can reduce heart disease, hypertension, LDL cholesterol, breast pubic louse, colon cancer and rheumatoid arthritis. Therefore, the demand will step on it due to positive word of mouth and advancement over the press.Besides, the annual population growth in Malaysia is still rising, thus the demand will in spades rise because more mouths to be fed.There is as well an chance when the AFTA come into the picture. The Omega egg can flow freely to neighbouring countries and increase sale for the company.The threat to LTK is the competitors enter into the same market. When most of the consumers accept the product, it is alike the time more and more players come into this market. Thus, LTK moldiness do more R&D to nurture the quality of the products.Chapter 4.0 A Portfolio Analysis of the Competitive Conditions (BCG) copulation market shareFigure 4.0 BCG MatrixThe capital of Massachusetts Consulting Group (BCG) matrix is a well- sockn onslaught to conduct portfolio analysis that provides corporate strategists with an insight of of the essence(p) strategic relationships between internal cash flows, market share, competitive p osition and growth trajectories.The characteristic of LTK omega plus eggs in BCG matrix is under STAR. First, it is because LTK is the initial player in the market of omega eggs. Thus LTK havent tapped the total market and the percentage of share is very low. Second, omega eggs are now in a fast growing period and havent reached the maturity date stage yet. A lot of mint are curios about these eggs and some pot still do not believe whether the egg is so miracle and effectual as they claimed.On the other hand, the traditional egg produced by LTK is in the specie Cow stage. This is because the market growth rate has been stagnant for very long time and the PLC is in the maturity stage. Moreover, the relative market share for LTK is very large if weight against the total market in Malaysia.The profit earned from the traditional eggs can be transferred to develop the star. Although the Omega eggs do not generate substantial profits compare to the prevalent eggs, but LTK believe t hat the trend is moving towards consumption of such eggs. Strategic planner essential follow the trend in order to develop levelheaded long term strategic plan.Chapter 5.0 Segmentation dodgeSegmentation is a process of subdividing broad markets into wide-ranging and differing smaller bases of buyers. They are consisting exclusive of characteristics.The benefits of segmentation are strategist able to accumulate sufficient market sector knowledge as well as sustain customer loyalty. LTK in like manner segmented the customers into several(prenominal) clusters. The objective is to avoid confusion and provide strategies with the opportunity to approach available segment with the right marketing strategies.LTK should segment its market based on income level, attitudes towards health, development level and psychographics. It is because the price of omega egg is moderately higher than ordinary eggs. Thus, only certain segments of the consumers are willing to pay for it. For instances, the business market of LTK will not be interested with this new product but to prefer conventional egg to keep the production cost as low as contingent. Therefore, LTK market segment should be those in the kernel class and it is practical since Malaysia has a relatively uncollectible middle class society.The consumers decision whether or not to choose Omega egg as well compulsive by the health awareness among consumers. It is because in the market there are too many health foods. Therefore, most of the consumers will think that omega egg is just another propaganda made by the producer. pedagogics level is also the main reason LTK should postulate since it can influence consumers DMU. It is because the higher education group of consumers only understand the meaning of Omega 3 and how the eggs can provide up to 5 times more Omega 3 and 4 times more of Vitamin E compare with ordinary eggs. The consumption of Omega 3 will reduce heart disease, hypertension, LDL cholesterol, breas t cancer, colon cancer and rheumatoid arthritis. In additional, Omega 3 is vital for the development of brain and retina tissues4.Psychographics also will be the factors that can influence the customers whether to buy or do not buy omega egg. As we know that nowadays majority of the customers prefer to buy the products that have a brand. Previously it is no way that consumers can accept that even egg should have a brand identity. Those days, branded goods were toys of the rich and famous. However, today people perceive branded goods as quality assurance. Thus LTK should portrait a healthy lifestyle pattern in the overall promotion effect. LTK should aim those who harbor healthy lifestyle and everlastingly engage in exercise or outdoor activities. In such a way, the company not only able to enhance market share but also building up a strong brand equity.Chapter 6.0 Positioning StrategyFor all these years, consumers treat all the eggs are the same. The only noticeable different i s the size and the hardness of the shell. However, LTK successfully draw the speciality line between Omega eggs and the ordinary eggs. Therefore, LTK should position omega substances as the distinctive and master(prenominal) element for the growing years. In such a way, general public as well as purport market will draw aid on consuming more omega substances and friendship such need with buying LTK Omega egg. This is cognize as classical attainment in consumer behaviour study.Chapter 7.0 Marketing ObjectivesMarketing objectives may divide into quantitative and qualitative. In LTK case, the quantitative objective is to enlarge the market. The CEO of LTK plans to exploit the South East Asia countries as well as western countries. LTK also wishes to increase the market share by 35% indoors the following 5 years. It is because LTK plans to spend 20% of the revenue in advertisement to promote the new product and healthy lifestyle. LTK also wishes to increase profitability by 7.6 % in the coming year. In order to improve profitability LTK will empower and delegate more ascendency for the marketing department and sales force to acquire out necessary tasks.The qualitative objectives set by LTK are to build up the company soma and products brand equity. Besides, the company also wishes to train more middle managers in line with the strategic expansion. In conjunction with the expansion, LTK also wish to increase the marketing department employee welfare to boost up organisation spirits and morale. Besides, LTK wishes to have stronger affiliation with large-scale retail chains.Chapter 8.0 Marketing Strategy (Strategic Direction)LTK is the market leader a leader moldinessiness be at a state of constant alertness and maintain vigilance because other firms will attacks its weaknesses and try to offset LTK strength. The competitors also can do R&D and become more innovate than LTK.Thus, if LTK wish to sustain their positions as a leader, LTK should be more proa ctive. First, LTK must(prenominal) seeking the strategy of extending the total market. LTK should welcome new users including the low-income earner. LTK can categorise the size of the eggs. It is because now omega egg only has one size. If LTK sells the smaller size egg cheaper than the other, lower income consumers will try to buy it. Besides, LTK could develop new market such as South East Asia and EU continent. Thus, LTK not only trim back the Malaysia market but the overseas market too.As the market leader, LTK not only must expand the market, but to protect its current market share. Pre-emptive defence force is crucial to undermine the competitors before they do. Furthermore, counter-offensive defence is also necessary to cut off the challengers operational base.Chapter 9.0 ontogenesis the Marketing Programs for LTKIn order to achieve the predetermined objective, LTK must balance off the attention for internal and foreign market. Until now, the main focus for LTK should be domesticated thus LTK should establish an overseas subsidiary in Asia and other state in Malaysia. However, LTK must always conduct research pertaining the consumer behaviour to segment the market. LTK must bear in mind that consumer insight will differ base on geographical differences. In addition to segmentation, LTK should aim for the most remunerative butt market. In my humble point of view, I will consider the segment which earning per year is above 30,000 with a family size of 2-5 members. This segment will be the iodin largest segment in Malaysia and Asia countries. Thus the segment is sustainable, measurable, profitable as well as accessible.This subsidiary is also responsible to gather market information in Malaysia market and distribute the company product to neighbouring countries such as Thai, Singapore, Indonesia and Brunei. The subsidiary is responsible to keep cobblers last contact with the retailers in these countries.After establishing the distribution netwo rk, it is more most-valuable to ensure the product is acceptable by the consumers. The marketing department must understand that the company semipermanent objective is to move from core pass judgment to increase value. Therefore, the media department must develop the advertizing message that suits the taste of the target audience as well as meeting the company long-term objective. Furthermore, the message must be informative, educate and entertain.In this point of time, I think the advertisement authorship must focus on introducing the public to the benefit of LTK Omega 3 enriched egg. The choice of media is also chief(prenominal) when developing brand equity. It is a prudent move to place some advertisements in the health magazine in these countries. Besides, the company can place some advertisements in selected local newspapers and radios stations. If the budget allocation allows, the company can consider placing advertisement on television. some(prenominal) said and done, I think it is more withdraw to employ local agencies to handle the advertising activities since they are more familiar as well as more efficient. Below is sample of advertisements that LTK has applied in the local context.The marketing department must supervise the performance of the advertising agencies from time to time or apply the payment based on performance scheme to motivate the agencies to put in more effort or pull up their socks. advancement campaign is equally important to stimulate tryout for this product. The trial is very important because it will enable the company to portrait the superior quality of the egg and relate it to the brand name. The planned promotion campaign that I intend to carry out is the gift session in major supermarket and hypermarket.In this demo, I will show the audience how different is the LTK Omega egg from ordinary eggs. It is totally different in term of colour and elasticity of the yolk5. You can break apart up the yolk of LTK Omega egg from the gabardine and the yolk will not break or burst. This demo can be recorded and mail in the TV as part of the advertising campaign too. On the other hand, the company can also visit school and give away free bookmark and sample to the students when they are having training classes. In the supermarket, the company can employ organize man dress up like Humpty -Dumpy. Besides during east wind day, LTK can do promotion like buy 12 eggs and get an Easter egg for free.Publicity is the most convincing shot for LTK Omega egg to persuade the consumers to purchase the product. The company should invite nutritionist to do scientific research and tell the public that whether LTK Omega eggs is actually as good as the company claim. The consumer movement groups and the public watchdogs are also invited to examine the quality of the product. If their comments are positive, then LTK Omega egg will easily penetrate into the Asia market.Packaging serve two purposes for LTK Omega egg. Fi rst of all, it will protect the egg and maintain its freshness. Secondly, the packaging can reflect the augmented feeling if it is nice decorated. However the company must bear in mind that the packaging must be environmental friendly and recyclable too. The target consumers in these countries are very much concerned with environmental issues like plastic container and too much paper wrappers.On top of that, the company should establish global mesh situation, regional web site as well as country web site to provide health concern consumers about health facts pertaining to LTK Omega eggs. Suggestion box must be prepared to keep in contact with consumers. Furthermore, the company can do on-line pitching to enlarge the distribution coverage.Lastly, LTK should enlarge the distribution telephone line to make this product easily available to the target market. There should be more state division wholesalers to support the distribution effort of LTK.Chapter 10 Implementation, militar y rank and ControlAlthough all the strategic plan has been position down in detail, the implementation is equally important to enable the plan to be carried out smoothly. all told the tasks must be delegated accordingly. On top of that, there must be coordinating mechanism to accelerate decision-making process. Above and beyond, there must not be any breakdown in communication within each level and within departments as well. There should be weekly report and meeting to trade ideas on improving the organisation activities. The Kaizen Methodology is very good in turning LTK into a learning organisation.Since there is a preset quantitative objective, it is possible to evaluate the actual performance against the preset standard. If the difference is too wide, corrective measurement must be taken.Other than comparing the actual result with the preset standard, LTK can measure the performance based on other sources such as customers feedback, retail audit, distributors feedback, mas s and toll free calls.In conclusion, the strategic plan must be review from time to time because the business environment is always dynamic and inconstant in nature. The holistic audit of various aspects will definitely benefit the company with coming out a more complete strategic plan.