Page |1

Need to launch
Idea generation:
Main idea behind this product generation is milk crises in U.K in 2005/09. The other thing is that the people of U.K are more conscious about their childrens health Innovators (Pvt) Ltd is offering them the best healthy product for their childrens.

Fats ingredient in the milk products of U.K are high. They have categorized milk products on account of fats but they are not focusing on calcium that is very essential for babies health so we are introducing milk with less fat but enriched with the calcium which is beneficial for their children.
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |2

NEW PRODUCT LAUNCHED BY INNOVATORS (PVT) LTD.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |3

AN OVERVIEW OF INNOVATORS

Innovators (Pvt) Ltd. Pakistan was established in 2009. Previously serving Pakistan and now it is going to launch a new product of milk (ABLA) with full calcium specialized for children and growing teens in U.K. Its plant is located in Newry and country head office is located in Belfast (capital of Northern Ireland).

VISION STATEMENT Provide the healthy products of Dairy and trying to keep lives on track.

MISSION STATEMENT
To lead in the Dairy products industry and enhance our share in market by meeting customers, suppliers and distributors needs.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |4

United Kingdom
The United Kingdom of Great Britain and Northern Ireland (commonly known as the United Kingdom, the UK or Britain) is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of the island of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land border, sharing it with the Republic of Ireland. Apart from this land border, the UK is surrounded by the Atlantic Ocean, the North Sea, the English Channel and the Irish Sea. The largest island, Great Britain, is linked to France by the Channel Tunnel. The United Kingdom is a constitutional monarchy and unitary state consisting of four countries: England, Northern Ireland, Scotland and Wales. It is governed by a parliamentary system with its seat of government in London, the capital, but with three devolved national administrations of varying powers in Belfast, Cardiff and Edinburgh, the capitals of Northern Ireland, Wales and Scotland respectively. The Channel Island bailiwicks of Jersey and Guernsey, and the Isle of Man are Crown Dependencies, which means they are constitutionally tied to the British monarch but are not part of the UK. The UK has fourteen overseas territories that are not constitutionally part of the UK. These territories are remnants of the British Empire, which at its height in 1922 encompassed almost a quarter of the world's land surface, the largest empire in history. British influence can still be observed in the language, culture and legal systems of many of its former colonies. The UK is a developed country, with the world's sixth largest economy by nominal GDP and the sixth largest by purchasing power parity. It was the world's first industrialized country and the world's foremost power during the 19th and early 20th centuries, but the economic and social cost of two world wars and the decline of its empire in the latter half of the 20th century diminished its leading role in global affairs. The UK nevertheless remains a major power with strong economic, cultural, military, scientific and political influence. It is a recognized nuclear weapons state and has the third or fourth highest defense spending in the world. It is a Member State of the European Union, a permanent member of the United Nations Security Council, and is a member of the Commonwealth of Nations, G8, G20, NATO, OECD, and the World Trade Organization.

Government and politics

The UK has a parliamentary government based on the Westminster system that has been emulated around the worlda legacy of the British Empire. The Parliament of the United Kingdom that meets in the Palace of Westminster has two houses: an elected House of Commons and an appointed House of Lords, and any Bill passed requires Royal Assent to become law. It is the ultimate legislative authority in the United Kingdom since the devolved parliament in Scotland and devolved assemblies in Northern Ireland, and Wales are not

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |5

sovereign bodies and could be abolished by the UK parliament despite being established following public approval as expressed in referenda. The position of Prime Minister, the UK's head of government, belongs to the Member of Parliament who can obtain the confidence of a majority in the House of Commons, usually the current leader of the largest political party in that chamber. The Prime Minister and Cabinet are formally appointed by the Monarch to form Her Majesty's Government, though the Prime Minister chooses the Cabinet, and by convention HM The Queen respects the Prime Minister's choices. The Cabinet is traditionally drawn from members of the Prime Minister's party in both legislative houses, and mostly from the House of Commons, to which they are responsible. Executive power is exercised by the Prime Minister and Cabinet, all of whom are sworn into Her Majesty's Most Honorable Privy Council, and become Ministers of the Crown. The Rt. Hon. David Cameron, leader of the Conservative Party, has been Prime Minister, First Lord of the Treasury and Minister for the Civil Service since 11 May 2010.[43] The UK's three major political parties are the Labor Party, the Conservative Party, and the Liberal Democrats, who won between them 622 out of 650 seats available in the House of Commons: 621 seats at the 2010 general election and 1 more at the delayed by-election in Thirsk and Malton. Most of the remaining seats were won by parties that only contest elections in one part of the UK such as the Scottish National Party (Scotland only), Plaid Cymru (Wales only), and the Democratic Unionist Party, Social Democratic and Labor Party, Ulster Unionist Party, and Sinn Fin (Northern Ireland only, though Sinn Fin also contests elections in Ireland). In accordance with party policy, no elected Sinn Fin Member of Parliament has ever attended the House of Commons to speak in the House on behalf of their constituents as Members of Parliament are required to take an oath of allegiance to the Monarch. However, the current five Sinn Fin MPs have since 2002 made use of the offices and other facilities available at Westminster.

National administrations
Northern Ireland, Scotland and Wales each has its own government or Executive, led by a First Minister, and a devolved, unicameral legislature. England, the largest country of the United Kingdom, has no devolved executive or legislature and is administered and legislated for directly by the UK government and parliament on all issues. This situation has given rise to the so-called West Lothian question which concerns the fact that MPs from Northern Ireland, Scotland and Wales can vote, sometimes decisively, on matters affecting England that are handled by devolved legislatures for their own constituencies. The Scottish Government and Parliament have wide ranging powers over any matter that has not been specifically 'reserved' to the UK parliament, including education, healthcare, Scots law and local government. Following their victory at the 2007 elections, the pro-independence
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |6

Scottish National Party (SNP) formed a minority government with its leader, Alex Salmond, becoming First Minister of Scotland. The pro-union parties responded to the electoral success of the SNP by creating a Commission on Scottish Devolution which reported in 2009, recommending that additional powers should be devolved, including control of half the income tax raised in Scotland. The Welsh Assembly Government and the National Assembly for Wales have more limited powers than those devolved to Scotland, although following the passing of the Government of Wales Act 2006, the Assembly can now legislate in some areas through Assembly Measures passed within clearly defined areas based upon, Legislative Competence Orders which can be granted on a case by case basis. The current Welsh Assembly Government was formed several weeks after the 2007 elections, following a brief period of minority administration, when Plaid Cymru joined Labor in a coalition government under the continuing leadership of First Minister Rhodri Morgan. The Northern Ireland Executive and Assembly have powers closer to those already devolved to Scotland. The Northern Ireland Executive is led by a diarchy, currently First Minister Peter Robinson (Democratic Unionist Party) and deputy First Minister Martin McGuiness (Sinn Fin).

Local government in England

The organization of local government in England is complex, with the distribution of functions varying according to the local arrangements. Legislation concerning local government in England is decided by the UK parliament and the government of the United Kingdom, because England does not have a devolved parliament. The upper-tier subdivisions of England are the nine Government office regions or European Union government office regions. One region, Greater London, has had a directly elected assembly and mayor since 2000 following popular support for the proposal in a referendum

Local government in Wales

Local government in Wales consists of 22 unitary authorities, including the cities of Cardiff, Swansea and Newport, which are separate unitary authorities in their own right. Elections are held every four years by First Past the Post with the most recent elections being in May 2008. The Welsh Local Government Association represents the interests of local authorities in Wales.

Law and justice

Today the UK has three distinct systems of law: English law, Northern Ireland law and Scots law. Recent constitutional changes saw a new Supreme Court of the United Kingdom come into being in October 2009 to take on the appellate functions of the Appellate Committee of the House of Lords. The Judicial Committee of the Privy Council, including the same members as
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |7

the Supreme Court, is the highest court of appeal for several independent Commonwealth countries, the UK overseas territories, and the British crown dependencies. The courts of England and Wales are headed by the Senior Courts of England and Wales, consisting of the Court of Appeal, the High Court of Justice (for civil cases) and the Crown Court (for criminal cases). The Supreme Court is the highest court in the land for both criminal and civil appeal cases in England, Wales, and Northern Ireland and any decision it makes is binding on every other court in the same jurisdiction, and often has persuasive effect in its other jurisdictions. On appeal, a court may overrule the decisions of its inferior courts, such as county courts (civil) and magistrates' courts (criminal). The High Court may also quash on judicial review both administrative decisions of the Government and delegated legislation.

Geography & Climate of England

The total area of the United Kingdom is approximately 243,610 km2 (94,060 sq mi) England accounts for just over half of the total area of the UK, covering 130,410 km2 (50,350 sq mi). Most of the country consists of lowland terrain, with mountainous terrain north-west of the Tees-Exe line including the Cumbrian Mountains of the Lake District, the Pennines and limestone hills of the Peak District, Exmoor and Dartmoor. The main rivers and estuaries are the Thames, Severn and the Humber. England's highest mountain is Scafell Pike (978 meters (3,209 ft)), which is in the Lake District. England has a number of large towns and cities, including six of the top 50 Larger Urban Zones in the European Union. The United Kingdom has a temperate climate, with plentiful rainfall all year round. The temperature varies with the seasons but seldom drops below 10 C (14.0 F) or rises above 35 C (95 F). The prevailing wind is from the southwest, bearing frequent spells of mild and wet weather from the Atlantic Ocean. Eastern parts are most sheltered from this wind and are therefore the driest. Atlantic currents, warmed by the Gulf Stream, bring mild winters, especially in the west, where winters are wet, especially over high ground. Summers are warmest in the south east of England, being closest to the European mainland, and coolest in the north. Snowfall can occur in winter and early spring, though it rarely settles to great depth away from high ground.

Geography & Climate of Wales

Scotland accounts for just under a third of the total area of the UK, covering 78,772 km2 (30,410 sq mi) the geography of Wales accounts for less than a tenth of the total area of the UK, covering 20,758 km2 (8,010 sq mi). Wales is mostly mountainous, though South Wales is less mountainous than North and mid Wales. The main population and industrial areas are in South Wales, consisting of the coastal cities of Cardiff, Swansea and Newport and the South Wales Valleys to their north. Lowland areas, especially the narrow waist of land between the Firth of Clyde and the Firth of Forth known as the Central Belt, are flatter and home to most of the

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Page |8

population including Glasgow, Scotland's largest city, and Edinburgh, the capital and political centre of the country.

Demography
At the most recent census in 2001, the total population of the United Kingdom was 58,789,194, the third largest in the European Union, the fifth largest in the Commonwealth and the twentyfirst largest in the world. By mid-2008, this was estimated to have grown to 61,383,000. In 2008, natural population growth overtook net migration as the main contributor to population growth for the first time since 1998. Between 2001 and 2008, the population increased by an average annual rate of 0.5 per cent. This compares to 0.3 per cent per year in the period 1991 to 2001, and 0.2 per cent in the decade 1981 to 1991 England's population in mid-2008 was estimated to be 51.44 million. It is one of the most densely populated countries in the world with 383 people resident per square kilometer in mid2003, with a particular concentration in London and the South East. The mid-2008 estimates put Scotland's population at 5.17 million, Wales at 2.99 million and Northern Ireland at 1.78 million, with much lower population densities than England. Compared to England's 383 inhabitants per square kilometer (990 /sq mi), the corresponding figures were 142 /km2 (370 /sq mi) for Wales, 125 /km2 (320 /sq mi) for Northern Ireland and just 65 /km2 (170 /sq mi) for Scotland in mid-2003. Northern Ireland had the fastest growing population in percentage terms of all of the four constituent countries of the UK in each of the four years to mid-2008.

Ethnic Groups & Religions

Ethnic groups White Black Mixed race Indian Pakistani Bangladeshi Other South Asian Chinese Other (inc. East Asian, Arab, Oceanic, Latin American) *Percentage of total UK population Population 54,153,898 1,148,738 677,117 1,053,411 747,285 283,063 247,644 247,403 230,615 % of total* 92.1% 2.0% 1.2% 1.8% 1.3% 0.5% 0.4% 0.4% 0.4%

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

Religion in the United Kingdom Religion Christianity None Not stated Islam Hinduism Sikhism Judaism Buddhism

Page |9
Percent 71.8% 15.1% 7.8% 2.8% 1.0% 0.6% 0.5% 0.3%

Demography of Northern Ireland

Age structure
015 years 1617 years Total under 18 years 1864 years 6574 years 75 years and over 398,056 53,458 451,514 (26.8%) 1,010,428 (60%) 123,193 (7.3%) 100,150 (5.9%)

Ethnicity

White Chinese Mixed Irish Traveler Indian Other Ethnic Group Pakistani Black African Other Black Black Caribbean Bangladeshi Other Asian

1,670,988 (99.15%) 4,145 (0.25%) 3,319 (0.20%) 1,710 (0.10%) 1,567 (0.09%) 1,290 (0.08%) 666 (0.04%) 494 (0.03%) 387 (0.02%) 255 (0.02%) 252 (0.01%) 194 (0.01%)

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 10

Population growth rate: 0.275% (2007 EST.) Total Period Fertility Rate (TPFR): 2.02 children born/woman Total Population
1,685,267

Total Males
749632

Total Females
784636

Economy
The United Kingdom's economy is made up (in descending order of size) of the economies of England, Scotland, Wales and Northern Ireland. Based on market exchange rates, the UK is today the sixth largest economy in the world and the third largest in Europe after Germany and France. Government involvement throughout the economy is exercised by the Chancellor of the Exchequer (currently George Osborne) who heads HM Treasury, but the Prime Minister (currently David Cameron), is First Lord of the Treasury; the Chancellor of the Exchequer is the Second Lord of the Treasury. In recent years, the UK economy has been managed in accordance with principles of market liberalization and low taxation and regulation. Since 1997, the Bank of England's Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year. The Scottish Government, subject to the approval of the Scottish Parliament, has the power to vary the basic rate of income tax payable in Scotland by plus or minus 3 pence in the pound, though this power has not yet been exercised. In July 2007, the UK had government debt at 35.5% of GDP. This figure rose to 56.8% of GDP by July 2009. The currency of the UK is the pound sterling, represented by the symbol . The Bank of England is the central bank, responsible for issuing currency. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 11

reserve to cover the issue. Pound sterling is also used as a reserve currency by other governments and institutions, and is the third-largest after the U.S. dollar and the euro. The UK chose not to join the euro at the currency's launch, and the British Prime Minister, The Rt Hon Gordon Brown MP, has ruled out membership for the foreseeable future, saying that the decision not to join had been right for Britain and for Europe. The government of former Prime Minister Tony Blair had pledged to hold a public referendum for deciding membership should "five economic tests" is met. In 2005, more than half (55%) of the UK were against adopting the currency, while 30% were in favor. On 23 January 2009, Government figures from the Office for National Statistics showed that the UK was officially in recession for the first time since 1991.[198] It entered a recession in the final quarter of 2008, accompanied by rising unemployment which increased from 5.2% in May 2008 to 7.6% in May 2009. The unemployment rate among 18 to 24-year-olds has risen from 11.9% to 17.3%.

Per capita Income

England Wales Scotland Northern Ireland $44,000 $30,546 $38,678 $29,603

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 12

Segmentation of U.K market Geographic segmentation

UK

England

Wales

Scotland

Northern Ireland

Demographic segmentation
Ethnic group Population White 54,153,898 Black 1,148,738 Mixed race 677,117 Indian 1,053,411 Pakistani 747,285 Bangladeshi 283,063 Other South Asian 247,644 Chinese 247,403 Other (inc. East Asian, Arab, Oceanic, Latin American) 230,615 *Percentage of total UK population % of total* 92.1% 2.0% 1.2% 1.8% 1.3% 0.5% 0.4% 0.4% 0.4%

Religion in the United Kingdom

Religion Christianity None Not stated Islam Hinduism Sikhism Judaism Buddhism

Percent 71.8% 15.1% 7.8% 2.8% 1.0% 0.6% 0.5% 0.3%

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 13

Targeting Market Geographically

U.K is basically a state with a versatile geographical location which is the basic cause of difference in U.K markets. It comprises of England, Scotland, Wales & Northern Ireland. For ABLA milk market of Northern Ireland is selected because it has small geographic location in which we can manage all the thing effectively and efficiently like logistics and supply chain management and we can easily penetrate into market. Our basic strategy is growth and this small geographical segment (N.Ireland) is a kind of test market with high risk and high return. This segment of market will help us to build our brand and brand reputation that will ultimately help us when we will go to England and Wales. This will also give much experience about the culture and consumer needs before going to the other countries of U.K.

Demographically
Ratio of female is greater than male in Northern Ireland and fertility rate is also higher than the other countries in U.K (2.11 children per women). Our target audiences are childrens and the Mothers of the childrens because mothers are more concern about the health of her children. so we are targeting mothers to tell them that our milk is more enrich with calcium that is very beneficial for their children. All ethnic groups are our target market we will not limit our market size by especially focusing of specific religion or ethnic base. There are some kind of products in which you can target some specific religion or ethnic group but there is no issue regarding milk in any religion or ethnic group so all the religion and ethnic groups are our target audiences.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 14

Procedure of Starting a Business in United Kingdom Standardized company

Legal Form: Private Limited Company (Ltd) City: Belfast

Registration Requirements Summary:

Procedure Time to complete: Cost to complete:

Check name for uniqueness at the company names index database on the web 1 day Prepare memorandum and articles of association; fill out and sign Form 12 in the presence of a notary public (or a commissioner for oaths, a justice of the peace, or a solicitor). Form 10 must be signed by a subscriber to the Memorandum. 1 day File incorporation documents with the Registrar of Companies at the Companies House 1 day Contact HMRC and register for VAT with Customs and Excise 1 day Contact HMRC and register for 8 days (simultaneous PAYE previous procedure) Sign up for employers liability 1 day (simultaneous insurance previous procedure) with

no charge

GBP 140 (approximately GBP 100 for solicitor services + GBP 5 for the statutory declaration of compliance + GBP 35 for statutory book)

GBP 30 no charge no charge with no charge

Registration Requirements Details

Procedure 1 Check name for uniqueness at the company names index database on the web Time to complete: 1 day Cost to complete: No charge Name of Agency: Comment:

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 15

Procedure 2 Prepare memorandum and articles of association; fill out and sign Form 12 in the presence of a notary public (or a commissioner for oaths, a justice of the peace, or a solicitor). Form 10 must be signed by a subscriber to the Memorandum. Time to complete: 1 day Cost to complete: GBP 140 (approximately GBP 100 for solicitor services + GBP 5 for the statutory declaration of compliance + GBP 35 for statutory book) The form of the memorandum is set out in a set of tables, the Companies (Table A to F) Regulations, 1985, which may be purchased from legal stationers, accountants, solicitors, or company formation agents. Forms are also available free of charge from the Companies House website: www.companieshouse.gov.uk. The company limited by shares that has adopted the entire Table A without modification does not need to deliver a copy for registration. Forms may be signed by one of the directors or a company secretary (only if the company has a company secretary). Procedure 3 File incorporation documents with the Registrar of Companies at the Companies House Time to complete: 1 day Cost to complete: GBP 30 Fees for filing incorporation documents vary. The standard registration fee is GBP 20 and GBP 50 for same day incorporation. The online registration fee is GBP 15 and GBP 30 for same day incorporation. Procedure 4 Contact HMRC and register for VAT with Customs and Excise Time to complete: 1 day Cost to complete: No charge HMRC will contact the company to register it for corporate tax (tax on company profits). Procedure 5 Contact HMRC and register for PAYE Time to complete: 8 days (simultaneous with previous procedure)

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 16

Cost to complete: No charge The company must separately contact the Inland Revenue to set up a contribution scheme for national insurance and pay-as-you-earn (PAYE) tax, which deducts income tax from employee wages or salary). The company will be issued a reference number in 5 to 10 days. Procedure 6 Sign up for employer liability insurance Time to complete: 1 day (simultaneous with previous procedure) Cost to complete: No charge The Employers' Liability (Compulsory Insurance) Act 1969 requires that proof of insurance be posted at the workplace.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 17

Overview of milk industry in United Kingdom UK Dairy Product Production

Liquid and cheese production increased in March compared to the previous year, butter production fell. Rolling annual production shows a small (0.3%) increase in raw milk processed into liquid milk, butter and cheese production were down by 4.1% and 3.9% respectively.

Provisional figures from Defra show that in March, raw milk processed into liquid milk increased by 1.9% from March 2009 to 589,930 tonnes. For the year to March, production has increased by 0.3% (20,130 tonnes) to 6.7m tonnes.

Production of Dairy Products Thousand Tonnes Liquid Butter Cheese March 2010* 589.93 9.33 32.16 April 2009 - March 2010* 6,744.89 111.56 358.71 March 2009* April 2008 - March 2009* Change from March 2009** 578.72 11.46 31.25 6724.76 116.35 373.11 18.6% 2.9% -4.1% -3.9%

1.9%

Change from 12 month total previous year** +0.3%

UK milk utilization

Milk utilized for liquid was almost 2.0% higher in March, when making annual comparisons. Milk utilized for cheese and yogurt was also up over the period, whilst butter and cream was down. For the first quarter, milk utilized for liquid was 1.7% higher compared with the first quarter in 2009, butter was 18.0% lower and yogurt was 38.9% higher at 25m liters.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 18

Provisional Defra figures for March show that milk utilized for liquid was 1.9% compared with March 2009 and stood at 581m liters. Milk utilized for cheese was also 3.3% higher over the same period at 306m liters. However, yogurt showed the biggest relative increase, at 77m liters, it was 25.7% higher. In March, 19m liters of milk was utilized for butter, a fall of 18.5% compared with the level in March 2009. This is likely to be partly due to the effective ending of butter being put into intervention. Cream production in March was also down by 1.8% at 21m liters. For the first quarter in 2010, a total of 1.7bn liters of milk were utilized for liquid, an increase of 1.7% compared with the same period in the previous year. During the period,56m liters of milk was utilized for butter and 835m liters for cheese, a fall of 18.0% and an increase of 1.6% respectively.

million liters

March 2010 % change on March 2009 1.9%

Milk Used for Milk for Butter Liquid Products 581 487 19 -2.9% -18.5%

Cheese 306 3.3%

Cream 21 -1.8%

Yogurt 25 25.7%

January - March 2010 1,672 % change on same period in 2009 1.7%

Utilization of Milk 2009 (Source: Defra)

1,341 -3.8%

56 -18.0%

835 1.6%

60 -2.9%

77 38.9%

Provisional figures for the 2009/10 year show that 6.7bn liters of milk were utilized for liquid, 0.3% higher than in the previous year. Milk powder production utilized 922m liters in 2009/10, a fall of 1.5% (14m liters) compared with the previous year. 305m liters were utilized to make condensed milk, 5.3% lower when compared with the previous year when 323m liters were utilized.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 19

Liquid milk manufacture increased by 0.5% while fermented milk manufacture in the first two months of 2010 was 1.9% above 2009 levels

EU 27 Production ('000t) Jan-Dec Change on 2009 2008*** Milk Deliveries 133,385 -0.3% Liquid milk* 32,851 -0.2% Fermented 7,532 +1.3% prods Cheese ** 8,175 -0.2% Butter 1,881 -2.4% SMP 1,093 +14.4% WMP 660 -21.3% Condensed 1,118 -2.8% milk

EU 27 Production Jan-Feb Change on 2010 2009 21,162 -1.6% 5,158 +0.5% 1,250 1,282 305 156 111 184 +1.9% -0.4% -11.2% -14.8% +0.2% -1.2%

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 20

An overview of product
Milk in the UK (generally cow's milk) is distinguishable by its fat content.

Whole or full-fat milk contains about 3.5 per cent fat Semi-skimmed contains about 1.7 per cent fat Skimmed milk contains 0.1 to 0.3 per cent fat

Even whole milk is relatively low in fat and certainly semi-skimmed milk can be labelled as a low-fat food. Contrary to popular belief, lowering the fat content in milk does not affect the calcium content, so an adequate calcium intake can still be obtained from lower-fat dairy products. However, low fat milk contains less energy and lower amounts of fat soluble vitamins and isn't suitable for children under two years. The importance of calcium Calcium is a mineral that helps build strong bones and teeth, regulates muscle contraction (including the heartbeat) and makes sure the blood is clotting normally. Milk and dairy products have long been held as an important source of calcium. Why children need calcium Calcium is an essential nutrient for all children to help grow strong bones and reduce the risk of developing osteoporosis when they're older. But many children and teenagers don't receive their recommended daily intake. Encouraging children and adolescents to drink more milk, rather than other drinks, can provide not only calcium, but also important proteins, carbohydrates and micronutrients.

0.1% fat milk

The EU regulations for milk classification previously divided milk into three categories defined by the fat content; whole, semi-skimmed or skimmed. Prior to 2008, any milk that contained a different fat content was defined as a milk drink. On the 1st of January 2008 new regulations came into force to facilitate consumer choice. Now any milk with a fat content other than those laid out can also be considered as milk, provided that its fat content is clearly indicated on the packaging in the form of .% fat. However, these milks cannot be described as whole, semi-skimmed or skimmed. Following this change in regulation 1% fat milk is now offered to consumers who like the taste of semi-skimmed, but want to enjoy milk with a lower fat content.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 21

The nutritional differences between semi-skimmed and 1% fat milk are small and dependent mainly on the difference in fat content. 1% fat milk contains 40% less total and saturated fat than standard semi-skimmed milk. In addition, it has lower energy content than semi-skimmed and slightly lower levels of vitamins A and E, but has higher calcium content.

Our product
So now we are introducing milk with a 0.1 per cent fat content which has almost half the fat of semi-skimmed milk but retains a more creamy flavour. This is a good option for those people who want to lower the amount of fat they're consuming but dont like the taste of skimmed milk. Especially for childrens because of obesity issues inn EU. So we are giving this new category of milk that is good for health and especially for childrens as it contains low fats as well as the all kinds of calcium. We are focusing on health of the children so the expiry date of our product will be less than the other products in the market. The reason for selecting shorter expiry period is that we are providing them health so it is very necessary for us to provide them with fresh and healthy milk to ensure complete benefit from our product.

Levels of Product
Product: It is a dairy product, which provides calcium enrich milk in the market especially for childrens that helps them to strengthen their bones. Our product is classified as convenience product. Core Benefit: Core benefit of our product is healthy and strong bones with calcium Actual Product: Our actual product is milk. Expected Product: Taste, freshness, quality and calciums are the expected unavoidable ingredients of our milk. Potential Product: Curd, flavored milk, butter, cream our potential products.
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 22

1. ABLA liquid milk

Lower fat milk varieties are growing in popularity. One in three people drink semi-skimmed milk all the time. New innovations in the milk market are becoming more popular, such as milk flavored with strawberry and chocolate, and milks with added vitamins and minerals. Consumers drank milk because it was a healthy food, high in calcium, and therefore good for bone development. The habit of drinking milk started for most in childhood. Abla liquid milk will provide them with calcium required for their bones.

ABLA powdered milk

ABLA Milk powder is specially formulated milk for Children to help build strong bones. It has all the goodness of high calcium milk and is also enriched with essential bone nutrients, such as zinc, magnesium and vitamin D. Just two servings a day provide at least 100 per cent of the recommended dietary intake of calcium and vitamin D for most children.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 23 Manufacturing Process

Collection Laboratory testing Reception Separation Fortifying Pasteurizing Homogenizing packaging

Collecting

Dairy cows are milked twice a day using mechanical vacuum milking machines. The raw milk flows through stainless steel or glass pipes to a refrigerated bulk milk tank where it is cooled to about 40 F (4.4 C). A refrigerated bulk tank truck makes collections from dairy farms in the area within a few hours. Before pumping the milk from each farm's tank, the driver collects a sample and checks the flavor and temperature and records the volume. At the milk processing plant, the milk in the truck is weighed and is pumped into refrigerated tanks in the plant through flexible stainless steel or plastic hoses.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 24

Transporting Milk is collected from the farm every 24 or 48 hours. The tankers that are used have a special stainless steel body which is heavily insulated to keep the milk cold during transportation to the processing factory. Milk tanker drivers are accredited milk graders, which allow them to evaluate the milk prior to collection. Tanker drivers grade and if necessary reject milk based on temperature, sight and smell. A representative sample is collected from each farm pickup prior to being pumped onto the tanker. After collection, milk is transported to factory sites and stored in refrigerated silos before being processing. Laboratory testing Once the milk arrives at the dairy plant, several tests are run to make sure that the milk is fresh and clean. A visual inspection is done to ensure that there is nothing foreign in the milk, and chemical tests check for the presence of harmful antibiotics. The milk is also checked for the amount of butterfat present. Furthermore, the workers make sure that the milk is below 45 degrees and conduct a smell check for any foul odors that may indicate spoilage. Even if a small sample of milk were bad, it would contaminate the entire milk supply at that dairy plant because all of the milk from the different tanks is mixed together. So you can imagine how important it is for these safety tests to be run and met. The standards for milk purity are set by the United States government so no matter where you drink milk in the country; it should all be of similar quality. Separating The cold raw milk passes through either a clarifier or a separator, which spins the milk through a series of conical disks inside an enclosure. A clarifier removes debris, some bacteria, and any sediment that may be present in the raw milk. A separator performs the same task, but also separates the heavier milk fat from the lighter milk to produce both cream and skim milk. Some processing plants use a standardizer-clarifier, which regulates the amount of milk fat content in the milk by removing only the excess fat. The excess milk fat is drawn off.
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 25 Fortifying

Vitamins A and D may be added to the milk at this time by a peristaltic pump,

A clarifier removes debris, some bacteria, and any sediment that may be present in the raw milk. The milk is then fortified and pasteurized which automatically dispenses the correct amount of vitamin concentrate into the flow of milk. Pasteurizing

The milkeither whole milk, skim milk, or standardized milk is piped into a pasteurizer to kill any bacteria. There are several methods used to pasteurize milk. The most common is called the hightemperature, short-time (HTST) process in which the milk is heated as it flows through the pasteurizer continuously. Whole milk, skim milk, and standardized milk must be heated to 161 F (72 C) for 15 seconds. Other milk products have different time and temperature requirements. The hot milk passes through a long pipe whose length and diameter are sized so that it takes the liquid exactly 15 seconds to pass from one end to the other. A temperature sensor at the end of the pipe diverts the milk back to the inlet for reprocessing if the temperature has fallen below the required standard.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 26 Homogenizing

Most milk is homogenized to reduce the size of the remaining milk fat particles. This prevents the milk fat from separating and floating to the surface as cream. It also ensures that the milk fat will be evenly distributed through the milk. The hot milk from the pasteurizer is pressurized to 2,500-3,000 psi (17,200-20,700 kPa) by a multiple-cylinder piston pump and is forced through very small passages in an adjustable valve. The shearing effect of being forced through the tiny openings breaks down the fat particles into the proper size. The milk is then quickly cooled to 40 F (4.4 C) to avoid harming its taste. Packaging

The milk is pumped into coated paper cartons or plastic bottles and is sealed. In the United States most milk destined for retail sale in grocery stores is packaged in one-gallon (3.8-liter) plastic bottles. The bottles or cartons are stamped with a "sell by" date to ensure that the retailers do not allow the milk to stay on their shelves longer than it can be safely stored. .

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 27

Pricing
U.K is a large state that comprises of four countries England, Wales, Scotland and Northern Ireland. There is a huge difference in cost of livings between these regions. London is one of the cities where cost of living is very high as compare to Northern Ireland. UK is ever increasing market and center of attraction for world tourists and also has a rich population. People are educated and health conscious. The existing milk industry is trying to meet its demand but increasing population is bringing more demand to for milk. So there is a gap where it would be easier for ABLA Milk to stand in direct competition with existing market drivers, First Milk and Aral Milk. So our pricing strategy would be matching with our competitors who are offering milk 22-25 Pence per 500 ml and 0.5 Pound for 1 liter for liquid milk. In powder milk Baby Milk action and Sweeten Condensed Milk are existing players in market who are offering 1.5 Pound for 500 mg and 3 Pound for 1 kg pack. So ABLA Powder milk will be launched at the same price as our competitors. Launching ABLA at similar prices as existing brands in market will help it believe its target of good standard.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 28

Estimation of cost and price

VARIOUS CHARGES COLLECTION CHARGES Laboratory testing Collection Fortifying Separation (28%) (32%) OUT OF TOTAL COST

PROCESSING Purification Labor and material Factory charges

PACKEGING & LABELING Designing Labeling Packing

(10.71%)

MARKETING EXPENSES Advertisement Promotion

(13.87%)

DISTRIBUTION Selling expenses Transportation expenses Fueling & repairing

(15.42%)

PROFIT MARGIN

(10 %)

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 29

Liquid milk prices litter litter 1 litter 1.5 litter Powdered Milk 1 kg 3 pound (300 pence) 13 pence 24 pence 52 pence 75 pence

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 30

Packing, Labelling and Branding

Packaging must serve as the means of communicating with shoppers. Historically; packaging was intended to provide protection. Today, with its marketing significance fully recognized, packaging is the major factor in gaining distribution and customers. In the causes of convenient goods and operating suppliers most buyers consider one well-known brand about as well as another. A package may become a products differentiate advantage, or at least a significant part of it.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 31

Packaging is very necessary for the development of a product. Our packaging is very attractive and preserves the milk from the external environment. It is packed in 4 different sizes. liter liter 1 liter 1.5 liter

Milk packaging, for the most part, has been dictated by the size of refrigerators. England for instance, as a culture has adapted to a medium sized kitchen in most urban and rural homes, leaving little room for anything bigger than a small refrigerator, which is the reason why most milk varieties can fit nicely on the door between the HP Sauce or a few cans of Lilt . To show ABLA as calcium rich and nutritious product ingredients are written on the walls of ABLA packaging.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 32

Distribution of Product

We have hired the Weaver Logistics Ltd For distribution of our milk from factory to retailer. the reason for selecting this logistic company is that it is not feasible for us to purchase logistic at the start of the company that will increase our fixed cost but as well as operating cost of that vehicles. We found that Weaver Logistics Ltd is offering reasonable price with complete safety of the
product therefore we choose Weaver Logistics Ltd.

Market data show that every household on the island of Ireland buys milk. Retailers, especially large supermarket multiples, are now the main supplier of that milk. Seventy-eight percent of all milk purchased in 2006 was through retailers. Doorstep deliveries now represent less than seven percent of sales. The safety of the milk supply chain is regulated by legislation primarily enforced by the Food Standards Agency in Northern Ireland and the Food Safety Authority of Ireland. Weaver Logistics Ltd is ensuring all quality standards that are required as by the law. So Weaver Logistics Ltd is the best choice that we have selected to distribute our product to wholesaler.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 33

Wholesaler
Paynes Dairies is hired wholesaler/distributor of Northern Ireland because this distributor has finest network in the region for retailers. The Vertical Marketing Integrated System will be used as to accelerate our product in retail. I.e. one of company sales man will be present in wholesaler/ distributor network to keep everything in apple pie order. This sales man will also check inventory and sales target status and will coordinate with company as required. The distributor will be offered a 5% incentive for sales on trade price where he would deliver further at an agreed retail price and product will flow through channel to final customer.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 34

PROMOTION, ADVERTISING AND SALES PROMOTION STRATEGIES.

Our advertising and promotion strategies is based on three phases

Creating the Awareness, educating the consumers providing information about product benefits and what are the diseases caused by lack of consuming milk.

Increase Usage, advertising campaign based on situation, fun, enjoy and health.

1. Below the line activities (BTL) 2. Brand line extension (targeting kids)

Advertising and Sales Promotion Strategy

1st phase
We will use doctors in our advertising. These doctors will focus on calicum in milk which is important for the growth of babies and kids.

2nd phase
INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 35

We will also focus on different events which are related to kids and mothers. We will also target kids by Focusing on different flavors, chocolate, strawberry and Banana. We will launch a campaign in Schools and entertainment parks. Stick Posters on Walls near schools.

3rd Phase.
We will also celebrate different occasions like Children days and will provide different gift packs. PROMOTION STRATEGY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Buy 2 XXL and get 1 MAZOO drink free. Conducting a seminar on essence of using milk. Placing the Pena flexes in front of the big stores. Providing famous stores with sign boards printed by ABLA MILK. Use of bunting in stores. Free sample Schools show Doctors endorsement for nutritious health life Cartoon character Milky Start Ladies show- milk related dishes competition Milk recipes

Buy 2 XXL and get 1 MAZOO drink free. One part of our promotion is getting a MAZOO MILK DRINK on purchasing of 2 XXL packs of ABLA MILK.MAZOO is a flavored milk for children to keep them healthy. This is also a part of promoting our future product MAZOO. So basically this act will help us not only in the promotion of ABLA MILK but also in the promotion of MAZOO DRINK.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 36

Conducting a seminar on essence of using milk Promotion team of ABLA MILK will conduct a survey on essence of using milk in daily life especially for children. In this seminar we will invite distributors, retailers, wholesalers that will help us a lot. Some of the famous personalities will also be invited to create interest for the people. Last but not the least media will also be invited because main purpose of this seminar is to create the awareness in people about ABLA MILK.

Placing the Pena flexes in front of the big stores We will provide big stores with Pena flexes and request them to keep Pena flexes in front of the entrance and on those places where customer can notice them easily. This will help us a lot as customer will know about this new product ABLA MILK.

Providing famous stores with sign boards printed by ABLA MILK We will provide sign boards to famous and big stores. These sign boards will contain store name along with the image of ABLA MILK. So, that the customer may know about our product. Use of bunting in stores We will make buntings of the image of ABLA MILK. In all the stores where ABLA MILK is available there will be a huge numbers of bunting hanging by the roof of the stores. Support service We will provide the facility to our retailer that we will take back the expired milk from them and providing them with fresh milk that will help us as retailer will not hesitant to buy ABLA product because he knows that if the product will not sell we will buy it back so no loss of retailer will happen.

Some of our advertisement samples can be seen in the following form.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 37

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 38

SALES FORCE IN NORTHERN IRELAND

There are 5 cities in northern Ireland Armagh Belfast Derry Lisburn Newry

The following is a list of towns (settlements with at least 4,500 inhabitants) in Northern Ireland. Antrim Ballycastle, Ballyclare, Ballymena, Ballymoney, Ballynahinch, Banbridge, Bangor Carrickfergus, Carryduff, Coalisland, Coleraine, Comber, Cookstown, Craigavon Donaghadee, Downpatrick, Dromore, Dundonald, Dungannon Enniskillen Holywood Kilkeel Larne, Limavady, Lurgan Magherafelt Newcastle, Newtownabbey, Newtownards Omagh Portadown, Portrush, Portstewart Randalstown Strabane

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 39

sales headof northern ireland

Belfast head

Armagh head

Derry head

Lisburn head

Newry head

assistant sale person

assistant sale person

10 sales person

5 sales person

5 sales person

5 sales person

10 sales person

Multilingual skills
All the sales person will have multilingual knowledge of both irish & English. However irish is not compulsory for top level because they do not have to communicate with the local persons. The sales force have to communicate to the persons in villages and city so for them it is cumpolsory to understand and speak knowledge.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 40

Experience
For sale persons minimum experience is required of two years having expertise in sales. And for managerial level 3 years of experience is required. For the head of sales department minimum of 7-8 years experience plus a master degree in sales field is required.

Education
For sales force persons no minimum education is required, only skill is required in sales field. For managerial level master degree is required.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 41

Annexure

Reference Group Influence Matrix

Necessity Private

Luxury

Public

ABLA Milk

As the market which Innovators have targeted is highly concerned with product quality and brand and most of them consider health a primary benefit in most of the food items which will create loyalty with the ABLA milk. Our product milk (ABLA Milk) is providing health with best quality and due to its quality it is public necessity. Due to the positive response of customer it is becoming a status symbol.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.

P a g e | 42

Ansoff matrix
Existing product New product
Product development

Existing markets

Market penetration

New markets

Market development

Diversification

INNOVATORS Inc. is newly established firm in U.K in the Dairy products and currently selling Milk, as its product is existing and it has to search new markets for it product so, it is in
market development stage.

INNOVATORS DAIRY PRODUCTS (Pvt.) Ltd.