Market Analysis 4h3214

https://www.youtube.com/watch?v=g_YOoUDdntAMarket analysis Milco highland ambewela Kotmale RDT Royal dariy sri lanka Milrain milk Lucky Fonerra Nesla Chello driay Richlife Lii

Lanka milk foods daily

1. Five Forces model

2. The dairy industry has immense potential to contribute considerably to Sri Lankas economic development. A traditional industry surviving thousands of years, milk production also plays an important role in improving nutritional poverty in all age groups. And it is a source of wide-ranging employment opportunities. 3. This study is on Lucky Lanka Milk Processing Company Limited which is well-known as “Lucky”. This is an organization which has many opportunities to spread their products over Sri Lanka. Lucky has experienced staff, fresh milk, and use vast technology in their production. With all these Lucky has been able to capture 18% of the dairy market which is comparatively low. In this paper the author will seek the possible opportunities for them to capture the market share and put forward recommendations for enhancement to promote the business among the Sri Lankan consumers. In this paper, the author endeavor to analyses the role of dairy products in enhancing the standard of health and nutritional intake of Sri Lankan of all ages

In addition, there are three milk processing companies that have secured the BOI approval to purchase local milk and produce Ultra Heat Treated (UHT) milk and pasteurised milk. Those are the Lanka Dairies (Pvt) Limited which markets the popular " Daily " Milk which is a subsidiary of Lanka Milk Foods and

Stassens group, Daily Lanka (Pvt) Limited, subsidiary of New Zealand Milk Products; which is a member of the Anchor group and the Tropifruit which produces UHT milk under the brand name " Rich Life ".

Under the Maninda Chinthana concept it has given much priority to develop and analyze trends and improve the efficiency of the milk production sector, The training will enable outreach services to advise farmers on best practices in buffalo rearing to increase local milk production levels, thereby increasing the income of small-scale farmers and improving their food security and livelihoods. The total processing capacity owned by private sector is about 450,000 l/p/day, but utilise only about 3040% of it. Kiriya/MILCO has a total capacity of 220,000 l/p/day and uses some 50% of it. Also there are several large scale operations in importation and packaging of milk powder. The bulk of this milk powder is imported and repacked by Lanka Milk Foods Limited and the New Zealand Milk Products TMOL (Pvt) Limited. In addition, Maliban Milk Products Private Limited, Danish Dairy Products Lanka Private Limited, Millers Limited, Delmage Forthy and Company Limited, Dutch Dairy Products Private Limited is also actively engaged in importation and packaging of dried milk powder. Theoretically, concentrate cattle feed also forms an important input for milk production, but in the present context the use of concentrates in milk production in Sri Lanka is very negligible. Although there are several large scale feed mills manufacturing livestock feed in Sri Lanka, the percentage of cattle feed produce by them is less than 1% of their total feed out put

Introduction ABC Company has established itself as the leader in Sri Lanka’s carbonated soft drinks market, gaining a 47% share and outperforming leading multinationals such as Coca-Cola, Pepsi and other local brands in a highly competitive business environment. The company’s success is attributed to its marketing strategies and brand positioning, which have taken into the psyche of local consumers. Most comparable products in many other countries have lost market share to multinational brands, but Elephant Soft Drinks has been able to compete successfully because it has understood local consumers’ needs better than its competitors. The latent desire among Sri Lankans to patronize so-called national products has also helped the brand to establish itself as a market leader. ABC Company has a four different products range, which gives it a competitive edge. The company has been able to strategically position these brands, which were previously

considered traditional products by consumers, by consistently investing in them. The company is also focused on different market segments which include sports drinks, fruit juices, isotonic and energy drinks, to its range of products. ABC Company has been able to achieve current position in the soft drink market because the target market is youth out of different segments of the society. ABC Company name for over 20 years has always prided itself at keeping their customer in focus and as such has evolved itself to always be innovative and relevant whilst responding to the needs of the time. With brand rejuvenation the Company sent out an early indication that this great brand was getting ready to do greater things - clearly sending out a message that the brand understands the needs of the new generation as well as the opportunities in Sri Lanka, and is now gearing itself to leverage its strengths and serve the customer in different way. So the company has decided to introduce fresh milk brand as a RTD (ready to drink) product. In 1991, Lucky Lanka Milk Processing Company Limited was established as a small scale business under the brand name “Lucky”. This is a dairy products manufacturer, currently manufacturing yoghurts and pasteurized milk. They are in the forefront of innovating nutritious products in diverse tastes and flavours. Their product range includes vanilla yoghurt, chocolate yoghurt, strawberry yoghurt, treacle yoghurt, low fat yoghurt, fresh Fruit yoghurt, fruit jelly yoghurt and pasteurized milk bottles and milk packets. With a vision of “Creating of healthy generation towards prosperous future in Sri Lanka”, mission of “To be the leading dairy suppliers for Sri Lankan consumer by year 2015” and their objectives as follow; To provide the best quality, highly nutritious, all natural and certified products To make our consumers and milk producers aware on the value of protecting the environment and of ing family farmers, sustainable and productive farming methods To serve as an environmental friendly business model which is sustainable and being socially responsible that will also be profitable To provide a healthful, productive, enjoyable and pleasant workplace for all employees, accompanied by skills development and career advancement To recognize and fulfill our obligations towards the stakeholders and lenders by providing an excellent return on their investment In order to be the market leader, Lucky should clearly identify its competitors; develop new products and timely introduction of new products to the market to take advantage of opportunities.

Market analysis The external factors that influence an organization can be identify using a PEST analysis. This is a simple analysis of an organization’s Political, Economic, Social and Technological and Environment. It emphasized that elements will lead to better understanding of how the four elements might affect to an organization and how strategies could be formulated. POLITICAL - With the enhanced political stability and encouraging the local manufacturers to develop productivity while safe guarding the domestic manufacturer by the government would definitely have positive effects on the current business situation in the country. The future of business is very promising and therefore prospects to branching or invest in the dairy business would be protected. One of the national priorities of the Government of Sri Lanka is to enable a rapid growth of the dairy sector in order to meet 50 percent selfsufficiency in national milk production by 2015. The present contribution of buffaloes to national milk production is approximately 16 percent, however it is considered that there is a high potential to increase this further. Policy framework for dairy development is designed and implemented in accordance with the declared macro-economic policies of the government. Accordingly the major trust of the policy initiatives for dairy development is directed towards expanding and facilitating the private sector activities in the production processing and provision of inputs for dairying and creating a competitive industry structure for all related activities for dairying are key concepts in the government planning process of dairy development. The promotion of the liquid milk consumption as against the heavy use of milk powders as at present among the local consumers is also a major concern in the present policy framework. The provision of public goods by the state and allowing the private sector to cater to the provision of private goods are also stated policy objectives of the present government.

The present policies of the government on the various components of the dairy industry and suggestions for improvement of same based on the findings of the Rapid Appraisal of the Dairy Sector are produced

Normally in the value added taxation regimes, there is the possibility of obtaining a credit on the GST payable on the finished product, equivalent to the amount of GST paid on the inputs

used by the manufacturing process. But unfortunately in the case of dairy farming the final product of the production process, that is milk is GST exempted and therefore the farmers do not have a mechanism to get relief of the GST they have already paid on the concentrates and other inputs used for milk production. One may argue that the small dairy farmers operate at very low production levels and hence their total turnover do not qualify them to for GST calculations, and any benefit of input credit on final GST is only a theoretical concept. But the reality of the present policy of GST on feeds however is that it has resulted in raising the animal feed prices, and therefore the cost of production of domestic milk. The higher cost of production of milk also has another implication. The liquid milk and milk powder being both GST exempted, is applicable both for domestic milk as well as for imports. It is not difficult therefore to understand that the present cost advantage of imported milk and milk powders to local milk or milk powders have been increased as a result of the policy of GST on animal feed. understandable. However by the present policy of adding GST to cattle feed and exempting the final product milk from GST to benefit the consumer only shows the insensitivity of government policy on dairy production. It is therefore suggested that the government reviews its policy on GST on animal feeds so that the dairy farmers are given the advantage of such a policy, while at the same time without burdening theconsumers of dairy products. Rectifying the GST on feed is likely to increase the use of concentrate feed for dairying, and hence will have a positive effect on the local milk production. This would also mean that there will be a surplus of milk which can be converted to products such as curd, yoghurt, ice cream, fresh cream etc. Pasture and fodder for dairying At present dairying in Sri Lanka is primarily dependent on pasture and fodder found on road sides tank bunds, ravines, and other common areas. Hardly any farmer practices the cultivation of pastures and fodder for purposes of dairying. There are many reasons for this farmer behaviour, and the lack of knowledge and skills about the possibilities of growing and using pastures and fodder is a major factor

to reckon. The pasture development and extension is a function of the provincial DAPHs. However there is no strong institutional arrangement either at the provincial level or at the national level to spearhead a useful programme for promotion of pasture and fodder for dairy production. It is however interesting to note that the recently started livestock breeding project by the Ministry of Livestock Development and Estate Infrastructure with technical assistance from the National Dairy Development Board of India, has a major component of the project on the promotion of pasture and pasture utilisation. The present weakness of the institutional arrangement for pasture development may become a hindrance for the above project objectives, and it is therefore recommended that the necessary institutional changes at the central DAPH, and the provincial DAPH and the Livestock Breeding Project are put in place early, so that a meaningful remedy can be made to the present problems on the expansion of the pasture base for dairy production.

Trade Policies The government of Sri Lanka has adopted the open market policy on the trading of dairy products. As such all dairy products are under open general license system, and the only requirement the importers of dairy products have to comply with are the standards set by the Sri Lanka Standards Institution. Full cream milk powder and the skim milk powder are the 2 important dairy products imported from out side sources, and which have an implication on the domestic dairy industry. Full cream milk powder is the main dairy product in the formal milk market of Sri Lanka, and skim milk powder is an important raw

material for the production of items such as ice cream, yoghurt, reconstituted milk etc. Both these commodities therefore have a direct bearing on the market prices of domestic fresh milk which is a substitute for milk powder or as a raw material for the production of above mentioned other dairy products. Milk powder has a 10% duty rate, and a 4.5% national security levy. In addition the importers also incur a cost when opening letters of credit for such imports. This is the stamp duty on the letters of credit, and at present it is equivalent to 2.5% of the CIF value of the consignment for import. Although there some pressure to raise the custom duty on full cream milk powder and skim milk powder, the findings of the study do not tend to a change of the present duty structure for these two commodities. Also the deteriorating rupee-dollar parity rates also has forced the milk powder packers to raise their prices accordingly. After the implementation of WTO agreements by the milk powder exporting countries on reduction commitments on dairy production, it is likely that the international prices of dairy commodities will increase in the international markets. The present effective rate of taxation of nearly 19% may therefore be sufficient to give the required protection level for the domestic dairy industry. In line with the government policy of promoting free market for dairy processing and marketing, the government in the past has offered several concessions and fiscal incentives to the private sector to enter into dairy processing

ECONOMICAL The stability of the economic state of the country will identify secure place for the new investment s. Stage of a business cycle, current and projected economic

growth, inflation and interest rates, unemployment and supply of labor, labor costs, levels of disposable income and income distribution and impact of globalization also effecting the organization. Dairy Economics and Markets economics of dairy production, market channels, and finally dairy consumption. Economics of Dairy Production Farm-level budgets The revenues and costs of cattle keeping and production, including dairy production, were estimated from the results of the household survey. These estimates are shown in Table 4. Revenues include sales of milk and animals and the value of milk consumed by the household. Costs include fixed equipment and variable costs such as feed and input services. The costs of family labour and land were not available from the survey and so are not included. This should be kept in mind when evaluating returns, which are thus considered returns to land and labour. Not all zones are shown, as the results were not judged to be reliable in some areas due to lack of producer response to questions. The results show that overall, cattle-keeping households earn returns to land and labour per household of nearly SR 28,000 per year, or more than SR 2,000 per month. Per metric ton of milk overall returns to land and labour are over SR 10,000, or over SR 10 per litre of milk ( a litre of milk is approximately 1 kg). Comparing zones, the highest returns were reported in the Low (Wet) Country, which includes Colombo. The high returns there were due to high prices of milk available through local sales to individuals and institutions, underlining the importance of informal dairy markets in maintaining producer profitability. The lowest returns per household were reported in the mid-country and coconut triangle, where feed costs were reportedly high and revenues relatively low. The largest cost components are for cattle, fixed equipment, and feeds. Reported expenditures on veterinary drugs and services are generally quite low. In the large majority of household cases, dairy and cattle production are only one component of the household farm and employment strategy, in which case returns to land and labour should be viewed

from the point of view of returns per litre of milk. At over SR 10 per litre of milk, the returns can be considered as relatively good, considering that milk prices in most collection centres are in the range of SR 11-12. The reason that returns are nearly as high as those prices is the much higher value of the milk sold to local/informal markets, and the value of sale of animals. Again, it should be kept in mind that these returns must also cover the cost of land and family labour. Nevertheless, these results suggest that in most cases dairying is an economically viable enterprise, and that the informal market is critical to profitability. These results also point to the strong comparative advantage of domestic producers for the liquid milk market (the target of most of the informal milk market).

SWOT ANALYSIS FOR LUCKY 1. According to Armstrong (2004), “SWOT analysis a strategic planning technique used to appraise the strengths, weaknesses, opportunities, and threats concerned in an activity or in a business venture”. Author has used the tool to understand the inside of Lucky and to analyses the internal environment of the organisation.

2. Strengths 3. Awarding farmers on obtaining best quality high milk yield 4. Introducing Farmer insurance scheme (investment in all areas of the supply chain ranging from top grade cattle to year round supply of quality grass.) 5. Well-qualified staff ensures the quality of incoming raw materials and the final products through continuous inspection, monitoring and laboratory testing including chemical & microbiological testing of each batch (Product quality is maintained according to the Sri Lankan Quality Standards [SLS]) 6. Technical expertise and the technical assistance are always upgraded through national and international expertise on dairy technology (Lucky seven flavors are presented in an attractive Ready To Serve and single serving package system ) 7. Continuous in-house research & development activities are undertaken in order to expand the existing product range simultaneously

8. Weaknesses 9. Lack of supply of raw materials, the average Sri Lankan dairy farmer owns two to three cows, with milk production used to supplement main incomes 10. Quality of incoming raw materials (Milk)

11. Affordability and storage limitations 12. Dairy production also makes poor economic sense to local farmers

13.

Opportunities

14. As the local dairy industry has failed to keep up with a growing population of 19.5 million in early 90’s, the Dairy market was opened for new entrepreneurs to start up new business. 15. World Health Organization recommends around two glasses of milk each day, which equals to 146 liters per capita annually and the Sri Lankan per capita milk consumption falls below to 25 liters per year in 21st century. 16. Growth in high nutritional foods and high medicinal valued food demand. 17. Wide knowledge of people about getting healthy foods was increased and they used to add natural, neutrinos products to their meals which is well packed and can be used instantly. Also milk is fulfilling the above consumer demand by providing protection to the human body against different diseases. 18. Milk provides the best favorable media for microbial growth, greater care should be provided throughout the manufacturing process of these products

19.

Threats

20. Strong Competitors in the market such as Newdale, Highland and Kothmale 21. Potential health issues 22. Major prolonged economic depression

INDUSTRY ANALYSIS - PORTER’S 5 FORCES 23. Competitive rivalry within an industry – Medium It is important to know the organisation’s direct competitors. If there are more competitors and competitors deliver similarly attractive products, then the organisation most likely to have a very little power in the industry. As far as “Lucky ’’ is concerned there are three direct competitors such as Newdale, Highland and Kothmale. However generally there is a stiff competition in the industry. If customers or suppliers don’t get a good deal they would go elsewhere and get a better deal. Based on a number of information sources, including those reported above, a dairy market channel flow diagram was constructed for the Sri Lankan dairy sector (Figure 9) The RRA Survey indicates that milk producers retain about 15% of their production for family consumption, the remaining is sold locally or to the collection centres, mainly to Milco/Kiriya and Nestle. Thus, 52% of the marketed milk is

eventually formally processed, before reaching the consumer in liquid or other product form. Significantly, however, approximately 34% of the marketed milk is not formally processed, and is Economics and markets Appraisal of the Sri Lanka Dairy Sector: Synthesis Report 24 marketed either raw or as indigenous products such as locally-produced curd. While this informal or unregulated market is small in comparison to most developing nations, such as in India where it is estimated to comprise 85% of milk production (Dairy India, 1997), it remains significant. Total dairy imports in 1997, on liquid milk equivalent basis, were estimated to represent 43% of all milk available (including producer home consumption), and were an addition to the milk available of 85% of domestic milk production. Imports represent 69% of the formal, processed milk market8 and 50% of the overall market. Figure 10 below shows market share in the overall market, all marketed milk and dairy products available, not including home consumption. In those , local or informal share of the market is clearly significant as the largest single domestic share of the market.

24.

Bargaining power of suppliers – High

25. The bargaining power of suppliers is high as there are selective suppliers who have the quality standards that the organisation expects. Also the raw materials (milk) are purchased by a few selected suppliers. The cost of switching from one to another would come in to effect in the longer term run if there are complaints with other supplier products.

26.

Bargaining power of customers - High

27. The bargaining power of the customers stays at high level, since there are relatively higher branded quality products available in the market.

28.

Threats of new entrance – High

29. Significant barriers to entry in to market is due to the bargaining power of supplier being high, also this involve a high investment in industry so that it would not be an easy task to enter into the market.

30.

Threats of substitutes –Medium

31. This lies at a medium level as there are few quality brands dairy products are available, although substitution is easy and viable in the industry.

32.

MARKETING OBJECTIVES

33. The marketing objective of Lucky is to cover the entire Sri Lankan provinces by year 2015. The main objective is to capture the markets in

North, East, and coconut triangle cities like Gampaha, Kurunagala and Putthlam. Therefore, they are planning to build the next factory in North Central (Anuradhapura). The main reason behind this is that the climate and other environment evidence which really suites for dairy market. Milk is produced in all districts of the country, with the lowest being in the conflictaffected Northern districts. According to the 2002 Census of Agriculture, the largest cattle populations are reported from the dry and in the intermediate zones. The wet mid - and up-country areas are often perceived as the main dairy producing areas of Sri Lanka. The dry and dry intermediate zones produce 50% more milk than the wet and wet intermediate zones.

34.

35. Lucky aim to start up distribution centers in all districts and indirectly this will the Sri Lankan. And also, Lucky want to be market oriented considering product, price, place and promotion. In order to achieve 30% of market share they will keep the unit sale volume of LKR 20. Lucky aim to organize awareness programs for farmers to increase the effective cattle base. 36. http://www.smiletemplates.com/screenshots/5/02485/w/b1.jpg 37. Specific: The specific marketing objectives are to reach out to potential markets as accurately as possible and use minimum time. 38. Measurable: They intend to achieve the measurable objectives in of the sales revenue earned soon after the launch. 39. Achievable: The fixed cost must be covered by effective use of marketing skills to maximize sales and profits. 40. Relevant: Fits if perfectly with the marketing objectives of Lucky. 41. Time: Objectives need to be achieved within three years after the launch of new factory.

42.

MARKETING ORIENTATION

43. The concept of the production is to increase the production of the dairy products and to reduce cost. The product concept focuses on making superior products and improves them over the time period adding more quality and innovative features. Generally selling concept gives high attention to the market place and marketing concept looking at the marketing process in a holistic manner. The final outcome would be to achieve profits through customer satisfaction.

44.

6.1 LUCKY ORIENTATION

45. Lucky is basically a sale oriented organisation. They mainly consider about high quality and high price. Therefore the organization must undertake an aggressive selling and promotion efforts. The purpose of marketing is to sell more objects to more consumers more often for added money in order to make more profit. They are able to sell 200,000 yoghurt per day and their daily income comes around LKR 5,000,000. 46. Figure - Market Share of Dairy Industry

47.

MARKETING STRATEGIES

48. Current marketing strategies of Lucky is to motivate both sales representatives and consumers, therefore, Lucky use push and pull strategy. According to Albaum et al (2006), Pull strategy is pre-selling the product so that buyers seek it out or ask for it at the point of purchase. Push strategy is working with resellers or assisting them is selling the product at the point of sales. Lucky uses push strategies for sales representatives by providing them with commissions, foreign tours and selling targets. They use pull strategy for consumers by providing reasonable price, high quality and different flavors.

49.

TARGET MARKET

50. Sri Lankan target market for dairy industry consists of lower income, middle income, upper middle and upper class comsumers. Lucky market their products especially for the middle Income level and lower middle income. Their segmentation approach will be general strategy, although mass marketing creates low costs, high volumes and margins. Segment Marketing will create a finer tuned product offering and price for the target segment. 51. Target Market can be further separate out on basis of Demographist, Geographic, Psychographic, and Behavioral Characteristics.

52.

MARKET SEGMENTATION

53. Market segmentation is to understand the customers, provide them with what they exactly want, build strong relationship with them and communicate through highly targeted promotions.

54. 55.

Chocolate Yoghurt No Sugar Chocolate

56. Geographic 57. Urban, sub urban and rural

58.

59. Region: Entire country 60. Urban, sub urban and rural

61. Region: Entire country 62. Demographist 63. Age:5+ 64. Gender: Male/Female 65. Income: Over LKR 10000 66. Occupation: Employees and non employees 67. Social Class: Lower income, Middle income, Upper middle and upper class 68. Age:35+ 69. Gender: Male/Female 70. Income: Over LKR 10000 71. Occupation: Employees and non employees 72. Social Class: Lower income, Middle income, Upper middle and upper class 73. Psychographic 74. Life Style: Outdoor 75. Personality: Ambitions/ comparative 76. Life Style: Health conscious 77. Personality: Ambitions/ comparative 78. Behavioral 79. Emotional / functional 80. Emotional / functional 81. Current segmented market of Lucky Lanka Milk Processing Company is lower income, middle income, upper middle, upper class families and individuals. These products have selected to market its products demographic attributes of the target market. Demographic segmentation consists of dividing the market into groups on the basis of variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality. Demographic segmentation variables are amongst the most popular bases for segmenting a customer group as it is easier to measure customer needs and wants and usage rates. The product and brand preference are often associated with demographic variables. Relating demographic segmentation to Lucky product distribution takes into consideration facts such as age groups, income as well as the social class of the consumer.

82.

POSITIONING

83. According to Kotler (2000), “positioning as the act of deg the company’s offer so that it couples as distinct and valued place in the target customer’s mind”. Therefore, positioning is the act of deg the company’s offering and image to occupy a distinctive place in the minds of the target market. Positioning leads to successful creation of a customer focused value proposition a cogent reason as to why the product should be bought by the customer. Lucky position their products as innovative, environment friendly and elegant products with brand offering. 84. PRODUCT MIX FOR LUCKY 85. Product

86. The high quality milk is selected for production, in compliance with all applicable law and regulations. Lucky products are made with pasteurized, organic skimmed milk, live active Bulgaricus, and Thermophilus cultures like yoghurt cultures.

87.

7.2 Price

88. There can be many factors that have to be considered when pricing a product. Relating factors to the product and taking into consideration the raw materials, labour, rent and technological costs incurred in manufacturing, Lucky yoghurt the pricing will be done accordingly. The product’s quality and the service also have to be absorbed when giving a branded product.

89.

7.2 Promotion

90. As the most important factor, the promotional method used to create awareness among customer base is by media ments, display boards and annual food exhibitions.

91.

7.4 Place

92. Their products are available in their own outlets, super markets and other grocery shops. 93. (Please refer appendix II )

94.

RECOMMENDATION AND CONCLUSION

95. The strategic plan defines Lucky’s over all mission and objectives. Within each business unit, marketing plays a role in helping to accomplish the overall objectives. Target consumers stand in the middle and goal is to build strong profitable connections with the consumers. Lucky, first identify the total market, divides it in to smaller segments, select the most promising segments and focuses on serving and satisfying these segments. It designs a marketing mix made up of factors under to control product, price, place and promotions. To find the best marketing mix, and put into action, Lucky engages in marketing analysis, planning, implementation and control. Through these activities, Lucky should watch and adapt to the marketing environment. 96. Lucky must analysis its markets and marketing environment to find attractive opportunities and to avoid environment threats. It must analysis strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. Chocolate and vanilla yogurts are in good demand while others are less preferred. Can we popularize new brands, like “Kithul”? (Please refer Appendix III, IV) As marketers we must continually plan our analysis, implementation and control activities. (Please refer Appendix V) 97. Lucky marketing strategies consist of specific strategies for target markets, positioning, the marketing mix and marketing expenditure levels. Marketing implementation is process that turns marketing plans into marketing actions in order to accomplish strategic marketing objectives such as reaching the

target sales of each kind of yogurts in different districts. Implementation involves day to day, mouth to mouth activities that effectively put the marketing plan to work. 98. Employees of Lucky must work together to implement marketing plans and strategies. Marketing managers make decisions about target segments, branding, packaging, pricing, promoting and distributing Lucky products. 99. Successful marketing implementation depends on how well Lucky blends its people, organizational structure, decisions and rewards systems and company culture into a cohesive action programs that s its strategies. Therefore, Lucky employees must needed skills, innovations, motivation and personal characteristics. Lucky, formal organization structure plays an important role in implementing marketing strategy, so do its decision and reward systems. 100. Finally, to be successfully implemented, Lucky’s marketing strategies must fit with its organization culture, the system of values and beliefs shared by people in the organization. For Lucky to be successful “employees must share such a strong vision that they know in their hearts what’s right for their company”. 101.

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