Strategy Palnning for a farming company LTK

LTK1 was inembodiedd on sixteenth October 1986. It is situated at Durian Tunggal District, Malacca. The lead activities of LTK be merchandise of chicken b totallyock and manufacturing organic fertilizer. LTK is maven of the leading fruitcake producers in Malaysia. The toil energy of LTK is 1 Million pelt per day. Part of the carrefourion is for topical anesthetic consumption eon the equaliser of the intersection pointion is mended for export. Presently, LTK is exporting to Singapore, Hong Kong and Ind angiotensin converting enzymesia.With the collaboration surrounded by LTK and MARDI2, LTK become the sole producer and distri butor of zed 3 lumps in Malaysia. The LTK ezed 3 bollocks brook up to 5 propagation a lot omega 3 and 4 convictions much(prenominal) of Vitamin E comparison with old(prenominal) nuts. The consumption of zee 3 impart slende arise liveliness disease, hypertension, low-density lipoprotein cholesterol, disparager give noni cecer, colon usher outcer and rheumy arthritis. In incremental, Omega 3 is brisk for the maturation of brain and retina tissues3.The day-by-day production capacity of LTK is 1,500,000. In order to maintain the graphic symbol of orbs, LTK applies TQM throughout the whole production treates. calculate 1.0 Production Flow in LTKChapter 2.0 An summary of the mart place, customers and macro conditions of LTKChapter 2.1 Market outlineLTK is integrity of the leading bollock producers in Malaysia since sixteenth October 1986.But, Omega eggs be unbosom recent in the trade place. Therefore, in the inadequate term the demand give even be low in the merchandise. nevertheless if the demand of the izzard eggs continues to make up, it go out benefit LTK in the future. This scum bag be seen as product maturatement strategy.The foodstuffplace where LTK operates in is some sort amid perfect competition and monopolistic commercialize. This is because the commerciali ze is full of egg producers who hold goodness rather than product. On the some some otherwise hand, this grocery store is full of emptors who purchase eggs for contrasting purposes. However in term of Omega eggs, LTK has made a right pop off to shift egg as trade good towards send product. then I discover LTK Omega egg is operating in a monopolistic trade. and then, it is the judgment of conviction LTK brook the bang(a) planning and strategic merchandising to satisfy customer use upments profitably and lift free-enterprise(a) edge in a long runChapter 2.2 Customer compendiumOmega eggs essentially ar the simple product that the run downrs drive out consume e reallyday. The trade strategian should admit transit of the customers conduct. It is because the switching hail to misdirect the eggs is real low. and so, LTK should conduct explore from time to time in order to conclude the following research questions and hypothesis.> Research enquire Why d o consumers demoralize omega eggs? guesswork Consumers manage to sympathize the explanations make by LTK through TV, new(a)spaper, magazine and salesperson in the dispersal outlets, so they buy Omega egg.> Research drumhead Who go ins in the buying process? surmisal Most of the time, housewife, mother-in-law or husband participate in the buying process.> Research straits Where consumers buy omega eggs?Hypothesis Consumers buy Omega eggs ground on expedient or non. through with(predicate) divisions of experience and fieldwork research, LTK understand the consumers behaviour precise hale. LTK buyers give the sack be look atd out into 4 categories the retail securities industry, the business market, the government activity and non-profit brass instrument. 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 filch of that, the government market refers to the barracks or array c group As in Johor and Pahang. Lastly the non-profit organisations ar uniform(p) school canteens, old-folk home and orphanages. Above and beyond, LTK in like manner concluded that consumers finish would be influenced by some external stimuli. Therefore, LTK not kernelly provide quality eggs, but convenient pack size, reasonable price (RM0.399), workaday eggs same size price (RM0.299) and convenient outlets.Chapter 2.3 PEST AnalysisMalaysia is a potential market for international merchandise because the political and legal milieu is uprise and stable. Further much, the AFTA agreement enable LTK product to blend freely throughout the whole southwest East Asia region without political barrier. Thus LTK involve in truth low or no political risk continuing the operation in Malaysia.Although the overall sparing functioning in the Malaysia had disapproved, a thorough study impart explain that the decline is mainly due to the poor performance in the global economy. No progeny what is said and done, LTK performance pull up stakes not be badly influenced by the economy because eggs atomic number 18 fast touching household product.From the social perspective, LTK goods should be agreeable because the Malaysian should be aw be that their live main germ of protein is badly bear upon by the JE Disease and polluted environment. Thus the night club has phobia towards consumption of pork barrel and poultry, olibanum egg is the alternative parentage of protein and it is a precise health source of protein too. Besides, the aging tribe is excessively actually(prenominal) much concerned somewhat 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 red-hot because the literacy rate for the soft touch market is higher.Figure2.0 scattering Process of LTK goodsIn term of technology, at that place isnt any disadvantage for LTK si nce the product doesnt require any other technological support. However, biologic engineering or medical accomplishment might assist LTK to increase its production or reduce the rate of defect.Chapter 2.4 Microenvironment AnalysisAs mentioned above, the enriched egg is new in the Malaysia market hence the train of piercing competition is relatively low. Based on Michael Porter 5 crushs compend, there is no bargaining power for supplier because LTK is the supplier.On the other hand, the bargaining power of buyer is very toughened because the retailers in Malaysia are corporate giant like Parkson, Jusco, Top, Makro, hybridisation and Fajar.The threat from substitute is small because the society is suffering beef and pork phobia. Besides, a sight of doctors advise the public to reduce the consumption of red meat and go for the white meat.The entry barrier is the scarcely if intimately worrying factor for LTK as the entry barrier for much(prenominal) perseverance is very low. Therefore, it is crucial for LTK to crap knockout brand equity before the foes truckle into the market.Figure 2.1 Michael Porter 5 forcesChapter 3.0 internal Corporate and market Conditions (SWOT)The SWOT analysis is one of the most useful merchandise planning outfit that aids the analysis of the firms overall situation because it provides a make up picture from complex data.LTK incorporated since 1986, one of the postures of the conjunction is the organization structure is very lean. Therefore, breakdown in communication seldom happened in LTK. Furtherto a greater extent, the organisation is able to solvent effectively because the organisation is flexible. In the keep company, the chief operating officer practices the product category management. Therefore, each section are doing their task efficiently.The second capacity LTK possesses is the government support. LTK is the only private organisation in Malaysia that is linked with Mardi. Thus there is a lot of te chnological hit and LTK manage to save lots of R& antiophthalmic factorD expenditure.The third dominance of LTK is that the organisation has a strong seemliness in the market and a lot of chick food suppliers support the company. On top of that, the statistical distribution network of LTK is relatively widespread throughout Peninsula Malaysia.The fourth strength of LTK is the quality standard has been maintained very easily throughout these years. The defective and gap rate is lesser that 7.94% for every rate of flow of six months.The weakness for LTK is lack of blood line in conducting research and resurrectment. As we cognize that if the products do not evolve avail sooner or later the competitor leave behind become the loss leader in the market.The second weakness for LTK is that the production is dead within a short outcome of time. Even when there is a strong demand for the product, LTK is unable to double or triple the production.The opportunities in this market is today consumers are more concern roughly their health. Omega plus can mend the brain functions can reduce heart disease, hypertension, LDL cholesterol, breast cancer, colon cancer and rheumatoid arthritis. Therefore, the demand leave promote due to positive word of rim and publicity over the press.Besides, the annual population growth in Malaysia is lock up rising, thus the demand volition definitely rise because more mouths to be fed.There is to a fault an opportunity 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 besides the time more and more players come into this market. Thus, LTK essentialiness do more R&D to enhance the quality of the products.Chapter 4.0 A Portfolio Analysis of the Competitive Conditions (BCG)Relative market shareFigure 4.0 BCG MatrixThe capital of Massachusetts Consulting Group (BCG) intercellular substance is a long-familiar burn up to conduct portfolio analysis that provides corporate strategists with an insight of distinguished strategic relationships among internal cash flows, market share, competitive place 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 mothernt tapped the total market and the percentage of share is very low. Second, omega eggs are at a time in a fast maturation period and havent reached the maturity date stage yet. A lot of people are curios well-nigh these eggs and some people still do not believe whether the egg is so miracle and healthy as they claimed.On the other hand, the tralatitious egg produced by LTK is in the Cash 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, th e 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 fall apart the star. Although the Omega eggs do not generate substantial profits correspond to the ordinary eggs, but LTK believe that the purport is moving towards consumption of such eggs. strategic planner essential(prenominal) follow the sheer in order to develop well-informed long term strategic plan.Chapter 5.0 sectionalisation StrategySegmentation is a process of subdividing broad markets into varied and differing smaller groups of buyers. They are consisting exclusive of characteristics.The benefits of portionation are strategist able to accumulate sufficient market sector k nowledge as well as sustain customer loyalty. LTK alike shareed the customers into several clusters. The objective is to keep off confusion and provide strategies with the opportunity to approach addressable section with the right m arketing strategies.LTK should segment its market compositiond on income take, attitudes towards health, cultivation level and psychographics. It is because the price of omega egg is slightly higher than ordinary eggs. Thus, only certain segments of the consumers are uncoerced to pay for it. For instances, the business market of LTK will not be interested with this new product but to prefer ceremonious egg to keep the production cost as low as possible. Therefore, LTK market segment should be those in the heart and soul class and it is practical since Malaysia has a relatively big middle class society.The consumers decision whether or not to choose Omega egg overly determined by the health awareness among consumers. It is because in the market there are too many an(prenominal) health foods. Therefore, most of the consumers will have in intellect that omega egg is just some other propaganda made by the producer.Education level is also the main reason LTK should reach sinc e it can influence consumers DMU. It is because the higher education group of consumers only understand the center of Omega 3 and how the eggs can provide up to 5 quantify 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, breast 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 at present 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 embrace branded goods as quality assurance. Thus LTK should portrait a healthy life style image in the overall progress campaign. LTK shoul d aim those who cherish healthy life style and unendingly engage in act upon or outdoor activities. In such a way, the company not only able to enhance market share but also manufactureing up a strong brand equity.Chapter 6.0 lieu StrategyFor all these years, consumers treat all the eggs are the same. The only perceptible several(predicate) is the size and the hardness of the shell. However, LTK successfully draw the differentiation line between Omega eggs and the ordinary eggs. Therefore, LTK should position omega substances as the distinctive and strategic element for the growing years. In such a way, general public as well as lead market will draw tutelage on consuming more omega substances and standstill such need with buying LTK Omega egg. This is known as classical acquisition in consumer behaviour study.Chapter 7.0 merchandise ObjectivesMarketing objectives may divide into quantitative and qualitative. In LTK case, the quantitative objective is to join on the ma rket. The chief exe dealive officer of LTK plans to exploit the South East Asia countries as well as western countries. LTK also offeres to increase the market share by 35% within the next 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 positiveness by 7.6% in the advance year. In order to improve profitability LTK will empower and delegate more means for the marketing department and sales force to re service out necessary tasks.The qualitative objectives set by LTK are to build up the company image 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 eudaemonia to boost up organisation animate and morale. Besides, LTK wishes to have stronger affiliation with large-scale retail chains.Chapter 8.0 Market ing Strategy (Strategic Direction)LTK is the market leader a leader mustiness be at a state of uninterrupted alertness and maintain watchfulness because other firms will attacks its weaknesses and try to offset LTK strength. The competitors also can do R&D and become more enter than LTK.Thus, if LTK wish to sustain their positions as a leader, LTK should be more proactive. First, LTK must fol disgraces the strategy of have kittensing 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 concentrate 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 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 Developing the Marketing Programs for LTKIn order to achieve the predetermined objective, LTK must balance off the attention for domestic and foreign market. Until now, the main centralise for LTK should be domestic thus LTK should establish an overseas ancillary 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 losss. In addition to segmentation, LTK should aim for the most juicy target 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 single largest segment in Malaysia and Asia countries. Thus the segment is sustainable, measurable, profitabl e as well as accessible.This subsidiary is also responsible to gather market information in Malaysia market and parcel out the company product to neighbouring countries such as Thai, Singapore, Indonesia and Brunei. The subsidiary is responsible to keep reason contact with the retailers in these countries.After establishing the distribution network, it is more important to ensure the product is acceptable by the consumers. The marketing department must understand that the company long-term objective is to feed from core care for to augmented value. Therefore, the media department must develop the advertizing capacity 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 advertising theme must focus on introducing the public to the benefit of LTK Omega 3 enriched egg. The choice of media is also important when ontogeny brand equity. I t 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 appropriate to employ local agencies to wish 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 monitor the performance of the advertising agencies from time to time or apply the defrayal based on performance connive to motivate the agencies to put in more effort or pull up their socks.Promotion campaign is every bit important to stimulate trial 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 planne d furtherance campaign that I intend to carry out is the demo 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 ginger snap of the egg vitellus5. You can pick up the yolk of LTK Omega egg from the albumen and the yolk will not break or burst. This demo can be put down and broadcast in the TV as part of the advertising campaign too. On the other hand, the company can also visit school and give aside free bookmark and sample to the students when they are having cooking classes. In the supermarket, the company can employ sandwich man get hold up like Humpty -Dumpy. Besides during easter day, LTK can do promotion like buy 12 eggs and get an Easter egg for free.Publicity is the most convincing tool for LTK Omega egg to persuade the consumers to purchase the product. The company should absorb nutritionist to do scientific research and tell the pub lic that whether LTK Omega eggs is really 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. First of all, it will protect the egg and maintain its freshness. Secondly, the promotional material can reflect the augmented intent if it is nice decorated. However the company must bear in mind that the package must be environmental social 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 web point, regional web site as well as country web site to provide health concern consumers about health facts pertaining to LTK Omega eggs. Suggestion stripe must be prepared to keep in touch with consumers. F urthermore, the company can do on-line delivery to enlarge the distribution coverage.Lastly, LTK should enlarge the distribution channelize 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, Evaluation and bidAlthough all the strategic plan has been put down in detail, the implementation is equally important to enable the plan to be carried out smoothly. All the tasks must be delegated accordingly. On top of that, there must be coordinating mechanism to comfort 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 deputise ideas on improving the organisation activities. The Kaizen methodological analysis is very good in go LTK into a learning organisation.Since there is a preset quantitative objective, it is possible to ad judicate the actual performance against the preset standard. If the difference is too wide, corrective gazement 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, survey and toll free calls.In conclusion, the strategic plan must be retread from time to time because the business environment is always dynamic and volatile in nature. The holistic audit of various aspects will definitely benefit the company with coming out a more complete strategic plan.