TUBE HONEY AND MIX FRUIT YOGURT

MULLER COMPAY LIMITED

1.0 History of company

When yogurt-loving Ludwig Muller first established his little Bavarian village dairy back in 1896, he could scarcely have imagined the staggering success it was to become. Today his grandson runs a hugely successful business, making it possible for people across Europe to enjoy the great taste of Muller. When The Muller took control of the family business in 1970, he recognized that the local popularity of his dairy's brands could be translated into national success if he improved the recipes and gave the products some heavyweight marketing support. The company began to grow very quickly, and in 1980 launched an innovative snack with fruit sauce and dairy rice in the same container – the genesis of Muller Rice. This unique combination of convenience and taste proved very popular and in the 1980s.

2000 From today, mile stone of the Company

2000 – Müller Vitality launched, giving Müller lovers the chance to get some probiotic goodness in a tasty yogurt.

2001 – Our £55million dairy extension was opened by HRH the Duchess of York. 2003 – Our passion for dairy products continued unabated. In 2003 we successfully

launched Vitality drink, a probiotic yogurt drink; Müller Rice only 1% fat; and our new luxury dessert yogurt range Amour. Marketing Magazine identified Müller as the UK's third-largest grocery brand in their biggest brands survey, and Müller was awarded Super brand of the Year by the Brand Council.

2004 – Müller acquired the license to market and sell Cadbury chilled products in the UK. With all this, it's no surprise that, for the second year running, Müller was awarded Super brand of the Year. Due to the success of Müller Vitality drinks, a new bottling plant for yogurt drinks was opened at the dairy in Market Drayton.

2006 – Yogz were replaced by the launch of MüllerLittle Stars – a children’s range with 100% natural ingredients addressing the healthy eating concerns of modern mums. Stewart Gilliland was appointed as Chief Executive Officer in the UK.

2007 – Simply Desserts and Müllerlight Layers launched. Müller was one of the official partners for Red Nose Day 2007, donating over £350,000 to this great cause!

2008 – The film crews arrived in Sunny Shropshire to film the Müller TV ad on the farm with one of the farmers that supplies the dairy with milk. We measured the carbon footprint of one of our Fruit Corner and put an action plan in place to reduce our carbon footprint over the next 3 years. We reduced packaging by 1,300 tonnes in 12 months.

2009 – Müllerlight Chocolate sprinkled range launched in January and within a couple of months was the top selling Müllerlight 6 pack. The Müller 10k Road Race was a huge success with a total of 1,250 runners, making it the biggest 10k race in the West Midlands. We removed the plastic label from our Vitality bottles, thus, reducing the amount of plastic used and going to landfill.

Mission Statement of Muller Company

"To bring sustainable dairy goodness from the heart of Shropshire for the good of everyone." And over the last 18 years we've been doing just that. We believe that this effort has led to stronger relationships with our local farmers, better quality Müller products and happier customers.

2-0 OBJECTIVES OF ASSIGNMENT

Every business needs to innovate to stay ahead of the competition. No business can continue to offer the same unchanged product, if they did so, profit would not be maximized and sales would start to fall.

Here we will look at some of the reasons why a company may introduce new products into its portfolio.

Consumer needs may change, forcing the company to adapt with these changing needs. If we look at food sectors around the world, consumers are becoming more health conscious, forcing companies to introduce low sugar and fat versions of their existing brands. Coca Cola Zero is a classic example.

The product maybe at the end of its life cycle, so the company may introduce new and improved updated versions. coca cola company introduce diet coke lemon

The product might be at the maturity stage of its life cycle and might just need to be re-modified to stimulate an increase in sales. Coca cola company coke was maturity of PLC in the market , launched new product cheery coke.

There may be environmental changes which the company may want to capitalize.

Competitors may force change. New products may be introduced because of competitors. The Pepsi company launch new product to market ,coca cola company have to move next stage of product.

The Muller company have to develop tube honey and mix fruit yogurt ,also the company launched fruit Yogurt which is successful to promote in the soft drink market, changing the consumer test, consumer purchasing behavior, life pattern and mostly indentified opportunity , the new product was developed.

The following stages are developing new product in the market.

Source:http://www.atkinson.yorku.ca/~lripley/zchtnewprodimpt.jpg

3-0 JUSTIFICATION OF ASSIGNMENT

The company to develop new Tube honey and mix fruit yogurt for the existing consumer who do not changes the muller product line and improve milk product market share according to the attacking new customer,

The above the reasons the coca cola company to innovative and create the new product as Tube honey and mix fruit in 2011 for UK market.

Current Product

Developed as New Product

This product so much of convince of consumer who are walking, driving, working by the time eat the yogurt without spoon, the yogurt with covered by pure honey & mix fruit cream when spoon to eat.

4-0 New Product Development (NPD)

Yogurt (also spelled yogourt or yoghurt) is a semi-solid fermented milk product that originated centuries ago and has evolved from many traditional Eastern European (e.g., Turkish and Bulgarian) products. The word is from the Turkish Yogen, meaning thick. It's popularity has grown and is now consumed in most parts of the world. Although the consistency, flavour and aroma may vary from one region to another, the basic ingredients and manufacturing are essentially consistent.

Improving and updating product lines is crucial for the success for any organization. Failure for an organisation to change could result in a decline in sales and with competitors racing ahead. The process development. These stages will be discussed briefly below:

Idea of NPD is crucial within an organization. Products go through the stages of their lifecycle and will eventually have to be replaced There are eight stages of new product

4-1 Idea Generation

New product ideas have to come from somewhere. But where do organizations get their ideas for NPD? Some sources include:

• Within the company i.e. employees• Competitors.• Customers• Distributors, Supplies and others.

4- 2 Idea Screening

Activities   OUTCOMES

Product idea generationConsumer studiesMarket studyProduct idea screeningProduct concept development

PRODUCT CONCEPT

This process involves shifting through the ideas generated above and selecting ones which are feasible and workable to develop. Pursing non feasible ideas can clearly be costly for the company.

4- 3 Concept Development and Testing

Activities   Techniques

Product idea generation BrainstormingProduct morphology

Consumer studies 

Focus groupsConsumer surveys

Market study 

Retail auditsMarket channel survey

Product idea screening 

Checklist screeningProbability screening

Product concept development 

Product attribute analysisConsumer groups

The organisation may have come across what they believe to be a feasible idea, however, the idea needs to be taken to the target audience. What do they think about the idea? Will it be practical and feasible? Will it offer the benefit that the organisation hopes it will? or have they overlooked certain issues? Note the idea and concept is taken to the target audience not a working prototype at this stage.

4- 4 Marketing Strategy and Development

In some companies, the same activities are used for every project but they may not be suitable. For example, the activities can be different for consumer, industrial and food service products because of the different relationships between product, supplier and buyer; there is usually minimal interaction between the consumer and the company in consumer product development but in food service the product is developed by the buyer (the chef) and the supplier together. The interactions are:

Consumer Consumer Product    

Industrial Supplier Buyer    

     

  Industrial product    

Food service Supplier Food service product Buyer

How will the product/service idea be launched within the market? A proposed marketing strategy will be written laying out the marketing mix strategy of the product, the segmentation, targeting and positioning strategy sales and profits that are expected.

4.5 Business Analysis

The company has a great idea, the marketing strategy seems feasible, but will the product be financially worthwhile in the long run? The business analysis stage looks more deeply into the cash flow the product could generate, what the cost will be, how much market shares the product may achieve and the expected life of the product.

a) GANTT CHART

we need to plan and explain when tasks need to take place, and to visually present our plan, we will probably provide a Gantt chart:

To create a Gantt chart proceeds as follows:

1. In row 1, enter the following column headers: Task, Start, End

2. In the following rows, enter the task descriptions and their start and end Month

o For a milestone, enter the start or the end onlyo To group tasks under a summary task title, leave the start and end empty.

     5.201

06.201

07.201

08.201

09.201

0 10.201011.201

012.201

0Preparation and Planning                    Idea Generation                    Idea Screening                    Development                    Concept Development                    Marketing Strategy                    Business Analysis                    Implementation                    Product Development                    Test Marketing                    Commercialization                    

BudgetingThe new product of The Tube of Honey and Mix Fruit Yogurt

  Details     cost total

1Research & Development     4000.00 4000.00

2 Designing     3800.00 3800.003 packaging     3100.00 3100.004 labling     1200.00 1200.00

5 Production      20100.0

0

  Material    12500.0

0    wages     5000.00    power     2600.00  

6 Administration       8130.00  power     600.00    telephone     730.00    salary     4700.00    rent     2100.00  

7 Financial       2870.00  Intest for O/D     340.00    Intest for loan     780.00    Leasing payment     1750.00  

8 Marketing      20300.0

0  Advertisment     4900.00    Promotion     7000.00    distribution     5000.00    Logistic & Transport     3400.00  

  Total Cost      63500.0

0

4. 6 Product Development

Finally it is at this stage that a prototype is finally produced. The prototype will clearly run through all the desired tests, and be presented to the target audience to see if changes need to be ma basic ingredients and manufacturing are essentially consistent de.

Ingredients

Starter Culture

Manufacturing Methods

Yogurt Products

a) Ingredients

Although milk of various animals has been used for yogurt production in various parts of the world, most of the industrialized yogurt production uses cow's milk. Whole milk, partially skimmed milk, skim milk or cream may be used. In order to ensure the development of the yogurt culture the following criteria for the raw milk must be met:

low bacteria count free from antibiotics, sanitizing chemicals, mastitis milk, colostrum, and rancid milk no contamination by bacteriophages

Other yogurt ingredients may include some or all of the following:Other Dairy Products: concentrated skim milk, nonfat dry milk, whey, lactose. These products are often used to increase the nonfat solids contentSweeteners: glucose or sucrose, high-intensity sweeteners (e.g. aspartame)Stabilizers: gelatin, carboxymethyl cellulose, locust bean gum, guar, alginates, carrageenans, whey protein concentrateFlavoursFruit Preparations: including natural and artificial flavouring, colour

b) Starter Culture

The start culture for most yogurt production in North America is a symbiotic blend of Streptococcus thermophilus (ST) and Lactobacillusdelbrueckii subsp.bulgaricus (LB). Although they can grow independently, the rate of acid production is much higher when used

together than either of the two organisms grown individually. ST grows faster and produces both acid and carbon dioxide. The format and carbon dioxide produced stimulates LB growth. On the other hand, the proteolytic activity of LB produces stimulatory peptides and amino acids for use by ST. These microorganisms are ultimately responsible for the formation of typical yogurt flavour and texture. The yogurt mixture coagulates during fermentation due to the drop in pH. The streptococci are responsible for the initial pH drop of the yogurt mix to approximately 5.0. The lactobacilli are responsible for a further decrease to pH 4.5. The following fermentation products contribute to flavour:

lactic acid acetaldehyde acetic acid diacetyl

c) Manufacturing Method

The milk is clarified and separated into cream and skim milk, then standardized with other dairy ingredients to achieve the desired fat and milk solids-not-fat content. The various ingredients are then blended together in a mix tank equipped with a powder funnel and an agitation system. The mixture is then pasteurized using a continuous plate heat exchanger for 30 min at 85° C or 10 min at 95° C. These heat treatments, which are much more severe than fluid milk pasteurization, are necessary to achieve the following:

produce a relatively sterile and conducive environment for the starter culture denature and coagulate whey proteins to enhance the viscosity and texture

The mix is then homogenized using high pressures of 2000-2500 psi. Besides thoroughly mixing the stabilizers and other ingredients, homogenization also prevents creaming and wheying off during incubation and storage. Stability, consistency and body are enhanced by homogenization. Once the homogenized mix has cooled to an optimum growth temperature, the yogurt starter culture is added.

A ratio of 1:1, ST to LB, inoculation is added to the jacketed fermentation tank. A temperature of 43° C is maintained for 2-2.5 h under quiescent (no agitation) conditions. This temperature is a compromise between the optimums for the two micoorganisms (ST 39° C; LB 45° C). The titratable acidity is carefully monitored until the TA is 0.85 to 0.90% (pH 4.5). At this time the jacket is replaced with cool water and agitation begins, both of which stop the fermentation. The coagulated product is cooled to 5-22° C, depending on the product. Fruit and flavour may be incorporated at this time, then packaged. The product is now cooled and stored at refrigeration temperatures (5° C) to slow down the physical, chemical and microbiological degradation.

d) Yogurt Products

There are two types of plain yogurt:

Stirred style yogurt Set style yogurt - The above description is essentially the manufacturing procedures for

stirred style. In set style, the yogurt is packaged immediately after inoculation with the starter and is incubated in the packages.

Other yogurt products include:

Sweetened stirred style yogurt with fruit preparation Fruit-on-the-bottom set style: - fruit mixture is layered at the bottom followed by

inoculated yogurt, incubation occurs in the sealed cups Soft-serve and Hard Pack frozen yogurt (see Frozen desserts section) Probiotic yogourts: it has become quite common to add probiotic bacterial strains to

yogourt (those with proven health-promoting benefits, in addition to ST and LB. These could include Lactobacillus acidophilus, Lactobacillus johnsoni, Lactobacilus casei, or Bifidobacterium spp. When probiotics are added, it has also become common to add ingredients known as prebiotics, such as inulin, which will, after digestion, aid in the growth of the probiotics in the colon. Inulin, for example, is a polymer of fructose (fructo-oligosaccharide) that is indigestible in the small intestine because we do not have sufficient enzymes to cleave the fructose bonds. However, in the colon, bacterial enzymes can easily release free fructose, which has been shown to positively affect the growth of the probiotic organisms.

4-7 Test Marketing

Test marketing means testing the product within a specific area. The product will be launched within a particular region so the marketing mix strategy can be monitored and if needed, be modified before national launch.

The new yogurt distributes all student of City of London College and gets feedback of following area

Taste of yogurt Package of convince New design Promotion and Advertisement Distribution

To improve the product and go for the Commercialization

4- 8 Commercialization

If the test marketing stage has been successful then the product will go for national launch. There are certain factors that need to be taken into consideration before a product is launched nationally. These are timing, how the product will be launched, where the product will be launched, will there be a national roll out or will it be region by region?

From the product specifications, the marketing strategy and the final prototype product, commercialization builds into three important functional plans (marketing, production and

finance) and then into an overall operational plan. These are combined together , which shows the different outcomes needed in each plan. The outcomes from the three plans are combined in an operational plan for the launch. After the launch there is a review of the final outcomes.

FINAL PRODUCT PROTOTYPEPRODUCT AND PROCESS SPECIFICATIONS

MARKETING STRATEGY           FINANCIAL ANALYSIS

 

MARKETING PLANOBJECTIVESPRODUCT DESCRIPTIONMARKET STRATEGYMARKET CHANNELSPHYSICAL DISTRIBUTIONPRICINGSALES PLANPROMOTIONPERSONNELCOSTSTIMING SCHEDULES

 

PRODUCTION PLANPRODUCT QUALITIESRAW MATERIALSPROCESSINGPROCESS CONTROLSTORAGE & TRANSPORTQUALITY ASSURANCEEQUIPMENTSERVICESPERSONNELCOSTSTIMING SCHEDULES

FINANCE PLANCOSTS, PRICES

PROFITSCASH FLOWS

CAPITAL INVESTMENTWORKING CAPITAL

RETURN ON INVESTMENTRISK ANALYSIS

   

OPERATIONAL PLANPRODUCTION CAPACITIES AND INVENTORIES

SELLING ORGANISATIONPROMOTION ORGANISATION

FINANCE AND FINANCIAL CONTROLSFULL SCALE INTRODUCTIONPOST-LAUNCH EVALUATION

   

DETERMINATION OF RETURN ON INVESTMENT

   

COMMERCIAL REPORT

5-0 CONCLUSION

Traditional, the yogurt consume all range of consumers who are buying convince shops or supper market The modern world all people are more buzz , how mange their time to eat and drink

So any consumption of yogurt with spoon when people are doing work, could not eat

Our new product of tube yogurt more advantage than current product, such as

Need not spoon for eating Acting same time can be eaten safely Highly food safe and prevention Children can eat without waste the yogurt When it take out ,yogurt is coated by honey and mix fruit cream,

Honey Fruit cream Yogurt

6 RECOMMENDATION

To improve the product , beet the completer who in the yogurt market Sales can be archived 20 % extra Capture the total market of sales The exciting way to distribute , to increase net profit The company success to promote UK market, to establish international Marketing To marketing to EU

References:

books

Andreasen, M.M. and Hein, L. (1986) Integrated Product Development, Berlin: Springer-Verlag, Bedford: IFS (Publications) Ltd.

Bray, S. (1995) Total Innovation: How to Develop the Products that Your Customers Want, London: Pitman Publishing.

Cooper, R.G. (2001) Winning at New Products: Accelerating the Process from Idea to Launch, 3rd edn, Cambridge, Mass.: Perseus Books

Crawford, C.M. and Di Benedetto, A.(2008) New Products Management, 9th edn, : Burr Ridge, Ill: Irwin/McGraw-Hill.

Drucker, P. F. (1993) Innovation and Entrepreneurship: Practice and Principles, New York: Harper Business.

Hisrich, R.D. and Peters, M.P. (1991) Marketing Decisions for New and Mature Products, 2nd edn. , New York: Maxwell Macmillan International Editions.

Lehmann, D.R. and Winer, R.S. (2005) Product Management, 4th edn., Burr Ridge, Ill: Irwin.

Magrab, E.B. (1997) Integrated Product and Process Design and Development, Boca Raton, Fla: CRC P

WWW

1.www.tutor2u.net/business/presentation/marketing 2

http://www.nzifst.org.nz/creatingnewfoods/proje:http://www.atkinson.yorku.ca/~lripley/zchtnewp

3 rodimpt.jpgct_organisation4.htm

4 http://www.foodsci.uoguelph.ca/dairyedu/yogurt.ht

5 www.muller.co.uk

Assignment

MANAGEMENT RESEARCH - PROJECT AND PRESENTATION

New Product Development of Muller Company - Tube Honey and Mix Fruit Yogurt

PGDMS: EDEXCELL BTEC LEVEL -07

BY

MR. SOMASUNDARAM ARULSUHANTHAN

ID: 000101151

Signature :………………. Date: 30.03.2010

CITY OF LONDON COLLEGE

LONDON

Assignment

Managing Financial Principles and Technique

PGDMS: EDEXCELL BTEC LEVEL -07

BY

MR. SOMASUNDARAM ARULSUHANTHAN

ID: 000101151

Signature :………………. Date: 30.03.2010

CITY OF LONDON COLLEGE

LONDON

Reference

Books

Peter Atrill and Eddie McLaney, "Accounting and Finance for Non-Specialists" (Prentice Hall, 1997)

Leopold Bernstein, John Wild, "Analysis of Financial Statements" (McGraw-Hill, 2000)

Daniel L. Jensen, "Advanced Accounting" (McGraw-Hill College Publishing, 1997)

Martin Mellman et. al., "Accounting for Effective Decision Making" (Irwin Professional Press, 1994)

Eric Press, "Analyzing Financial Statements" (Lebahar-Friedman, 1999)      

www

1.www.tutor2u.net/business/presentation/financial.

2.www.financial Management.com

3. www.financial management techniques