Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

Milka Desire
Marketing program
The launch of a new product/service on the Romanian market

1. Situational Analysis
How much can be invented in the world of chocolate? The trend of our company is to alter
the texture and combine chocolate with different flavors. Desire is the new assortment of chocolates
that we intend to sell as tablets, pralines, sticks or as special products.
Milka Desire is the innovator product that we launch on the Romanian market. Desire it
belongs to Milka brand and is intended for all those who want something new and love the
diversity. Milka Desire is found in the following forms: tablets, 100g and 250g, in a new
formulation of 10 lines, each having two rows of each of the following fillings: honey, walnuts and
caramel. We chose selling in form of tablets due to the fact that the Romanian chocolate
consumption is in particular in the form of tablets (70%), as they are considered to be energized and
even replacement of coffee.
Annual consumption of chocolate in Romania is 1.7kg per capita, and the Milka company
wants to improve this figure with this new assortment of chocolate. For the Swiss chocolate, milk is
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Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

a historical character, giving the chocolate a particular characteristic. It feels the richness of the fact
that cows graze on the best pasture, and it feels the flavor of the flowers on that pasture.

2. Opportunities / Issue Analysis - SWOT Analysis

STRENGHTS

WEAKNESS

Good brand position and quality

which is consumer favorites
- Strong demand for chocolate: the
market has grown at around % since
last year
- Stores available everywhere
- More emphasis on sales promotion
- Strong partnership with retailers
- Developing good skills, processes
and ways of working. Motivating
our people and reward winning
performance
- Price kept that it should be in the
range of everyones purchase
OPPORTUNITIES
-

Lack of innovative and designer

chocolates in the festival season
Few manufacturing units
Lack of new technology in the
Brasov Factory
Grow tired of the purple cow

THREADS
-

Cover more areas in Romania

Marine Shipping in Constanta
Harbor
Increase personal relation in
villages also
Increase product range
Organic and ecological trends

Many big players on the market

Mature market
New entrance in the market (light,
organic, fair trade etc.)

3. Description of the product

Common features
- contains water, sugar, cocoa and milk components,
- provides consumers with a variety of flavors and assortments

Specific features
- the finest cocoa
- the only chocolate with yogurt, walnut and honey in a single tablet
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Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

the slogan
the logo

Since it was conceived the Milka chocolate, there were important elements like: the purple
color, the cow. This image was permanently used in all avenues of promotion, which is why these
symbols should be understood. Since the beginning the packaging of the chocolate was purple. The
same purple that we know today, Milka purple protected by legislation that covers 70% of the total
package. Inclined to seek complicated explanations for the color, we might miss it the easiest:
purple is a color that stands out and definitely attracts attention to the product that you put on. The
cow appears on the package sending a simple message: cow means milk, Milka Is a milk chocolate.
Desire chocolate belongs to Milka brand which was registered in 1901. The tablets
packaging is purple on which is printed a picture of walnuts, yogurt and honey. The name "Desire"
is the irrepressible desire in the face of irresistible chocolate.
The logo is represented by the assortments name written in golden flame, pointing out
people's wish for chocolate. The base color used in visual communication is gold, to show the
prestige and quality of Milka Desire.
Brand slogan is "Diversify your life!". It is meant to stimulate people to enjoy the small
pleasures of life, to escape the daily routine and feel smooth and full taste of this chocolates
flavors. Over the years, Milka has adapted to new times and new requirements of consumers.
Successful brands must constantly innovate, evolve and remain a constant consumer preference.
We believe we have an advantage over the competition through the unique formula that
contains all 3 unique items in a single tablet. Therefore, we believe that we will enter the
chocolates market easily enough and will have an important place. We aim to become leaders on
the chocolates market. We want a unique position, understandable and important to consumers.

4. Price strategy
In terms of quality or price, we want high quality level position in consumers' minds.
Certainly the quality and smoothness of Milka Desire chocolate will be noticed by the consumer.
Taking into account the high quality of the chocolate, it will be a price consistent with these issues.
The product addresses to average or above average salaries consumers.
When determining a pricing strategy, its important to look at several factors current
market offerings and availability of the product, demand for a product or service, marketing and
manufacturing cost, competitions price, as well as consumer perception of the product.
When it comes to chocolate however, they have always pretty much sold themselves for
many years no matter what the price was. If you think about it, chocolates were first sold for 10
cents in the early 1900's and now sell for over a dollar in many areas.
Being that we are marketing a new type of chocolate, we will need to adopt a pricing
strategy that will allow us to penetrate the market in order to attract consumers to at least try the
product at least one time. Penetration pricing has been proven to work best in a saturated market, or
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Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

where services are concerned. Once the initial launch period is over and hopefully successful, we
would then adopt a competitive pricing strategy that will price our product in-line with other
competitor's, to ensure that no customers are lost due to higher pricing

5. Distribution strategy
The Milka Desire distribution system in Romania is complex. Many playersincluding
middlemenproduce, manufacture, transport, distribute, market, and sell the chocolate. By the time
the chocolate is placed on a grocery store shelf, it has traveled countless miles and has been handled
by many people. Each person has evaluated and scrutinized the product to assess its risk and
opportunity. Each has considered quality, price, packaging, labeling, and marketing plans. By the
time the product is purchased, the manufacturer, broker, distributor, and retailer have all determined
it to be viable and profitable, and the end consumer has deemed it to be of significant value.
Distributors purchase, inventory, transport, and sell the chocolate to retail accounts that the
manufacturer has set up. They also assist in gaining new retail accounts. Distributors act as logistics
experts for the product distribution. Markups can range from 0 to 35 percent of the wholesale price,
depending on the product, category, distributor, and retail customer.
The product is transported using insulated thermo-packaging and special layered ice-packs.
UPS devised strategic routeing and a dedicated drive from the factory to the UPS hub and on to the
airport. UPSs global network ensures the chocolate lands in Romania on optimum direct routeings.
Speed is essential, so Kraft Foods uses UPS Express services. Logistics helps KraftFoods ensure
its customers enjoy service that is as smooth as their chocolate.

6. Promotion strategy
We chose to promote new Milka brand chocolate assortment through an advertisement,
which will appear on all major TV channels in Romania, one week before the appearance of the
product on the market.
The new product is aimed to all age groups. To highlight this fact, we chose to realize an
advertisement in that will appear the family members. The action takes place in the average family
home, specifically the kitchen. On the kitchen table will be a Milka Desire chocolate tablet. Each
member, when they enter the kitchen, will take a piece of chocolate that contains their favorite
ingredients: the wife will prefer honey, the husband nuts and the child - yogurt. Of course, the
purple cow, Milka, will be present. Thus, we illustrate both the unique character of Milka Desire, as
well as brand slogan, inspiring the idea of diversity.
In building this advertisement, we chose to use the emotional affective strategy, as we
try to create strong emotions related to family life, which will lead to remembering the brand and
will make our chocolate to be the consumers choice. The approach will be emotionally, trying to
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Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

create a close link between the brand and the consumer, in order to form loyal customers. The
executive scene used is the "stage of life" type in which ordinary people appear because we try to
make the potential customers to identify themselves in our advertising spot, and thus desire to buy
the new Milka chocolate.
Since our company's target audience includes people of all ages, we chose to promote
Desire chocolate in various publications, such as:
"Elle", "Cosmopolitan", "The One" specific to women with average and above average
incomes;
Sites: www.ProTv.ro, www.zf.ro and www.sport.ro for men, but not only;
Daily newspapers such as: The Truth, Ring, thought and Event Day as they are read by
people of all ages;
Social network: Facebook, due to the number of users of different ages, and the frequency
with which the network is accessed by them.

7.

Financial Forecast

The budget assigned for the launching of our new product Milka Desire comes from
the companys capital and you can see how its devided for different stages of the process.
Sn

Details

1.

Promoting
TV advertising
Packaging labels
Magazine advertising
Website maintenance
Internet advertising
Events
Cost of production
Labour
Total Budget

2.
3.

Budget
$
2,100,000

600,000
300,000
3,000,000

As for the estimated revenue for the next year, analysts expect the company to
report earnings of over 30 mil $.

8. Conclusions
The marketing of our new assortment of chocolate will take place in the backdrop of
a weak economy but we have a positive attitude toward it. As we compare our companys product
with some other companys product, Milka Desire may seem to be same as other chocolates
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Facultatea de Administrarea Afacerilor, cu predare in limbi straine, Sectia engleza

existing in the market but it has a distinct taste of its own and it comes in a strong innovative form.
In addition, we put confidence in our chocolate consumers who have a refined taste for high quality
products and best selected flavors.

Bybliography:

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