National Food Products Company: Marketing Segmentation

Executive Summary

NFPC has been known as one of the largest food and beverage organizations in the UAE. Producing milk, mineral water, and plastic containers, particularly, bottles, NFPC has warranted the loyalty of numerous UAE residents. However, with the recent changes in the UAE market and the emergence of new customers, the firm may need to revisit its approach toward marketing. The new and improved marketing mix will have to include social media as the key tool for maintaining communication with customers, the creation of a new brand product that will represent the organization and the introduction of the product and customer segmentation strategies that will help identify the needs of diverse audiences more efficiently.

The homogeneity of products, the lack of a distinct brand, and a poor customer segmentation strategy can be viewed as the primary problems with which NFPC will have to deal to retain its position in the UAE economic environment and remain prosperous. Therefore, it will be necessary to identify potential buyers based on their age (e.g., viewing the mothers of infants as one of the crucial populations), as well as create a product that will represent the company in the UAE economic realm and cement its position in the specified market. The identified changes will require using innovative technologies, in general, and social media, in particular, to promote NFPCs products successfully. As a result, gradual economic growth will be observed in the firm.

National Food Products Company (NFPC): Background

National Food Products Company (NFPC) has been known as one of the key food producers in the UAE, thus, warranting the title of a local leader in the food and beverage industry (National Food Products Company, 2018). The firm has been operating in the UAE environment since the 1970s and currently employs around 500 people (National Food Products Company, 2018). Though being comparatively small, the organization has gained a rather impressive reputation by catering to the needs of its customers efficiently and deploying an elaborate customer segmentation strategy based on the dieting choices that they make, as well as the propensity toward environmentalism that has become noticeable among the residents of the UAE over the past few decades.

Scrutinizing the companys products, one must admit that NFPC has been offering a range of options to its customers. Particularly, the company has been producing milk and dairy products, mineral and sparkling water, and plastic containers (polyethylene bottles and other types of packing (National Food Products Company LLC, 2018). Since the combination of the items produced by the organization includes those of which customers have a varied degree of bargaining power (e.g., milk), NFPC has been experiencing a rather impressive streak of success in the UAE market (National Food Products Company, 2018). However, due to the lack of necessary changes in the domain of customer segmentation, NFPC may experience difficulties attracting new clients (Brand, Croonen, & Welsh, 2016). The introduction of changes into its marketing strategy, particularly, the shift toward using IT tools in the enhancement of its marketing mix and the reconsideration of the current marketing segmentation strategies, will allow catering to the needs of a wider audience, thus, helping the firm attract new customers.

Marketing Plan: Key Details and Objectives

Product

NFPC should consider rebranding itself in the target market by introducing a new product that will represent it in the UAE market. Even though the company has patented itself as the key dairy, mineral water, and plastic bottle producer in the UAE, it needs to explore new opportunities by embracing a wider audience. The specified change will also have to address changes in the UAE society. Thus, the needs of diverse populations will be met more efficiently, causing more people to develop loyalty toward NFPC and its products. In light of the recent propensity toward environmentalism and green production, it will be a sensible step for NFPC to introduce a new line of products such as milk-based snack bars, crackers, and ice cream, which will incorporate only healthy ingredients and the minimum amount of fat, as well as be made with the help of lean technologies and efficient waste management strategies (see Appendix A). The focus on the health and environmentally-friendly nature of the products, thus, must become the key selling point of the new products. As a result, a new segment of buyers will be attracted to the company. Particularly, it will be necessary to cater to the needs and demands of Millennials as one of the key demographics that is bound to help the firm flourish in the realm of the UAE market.

Place

Seeing that UAE customers can be characterized by their reluctance toward using online services and propensity toward following word of mouth, it will be a sensible step to focus on advertising the product not only online but also using other media within the community. The relationships with target demographics, however, must be built using the available modern media tools. Particularly, it is crucial to focus on using social networks as the means of maintaining a consistent connection with potential buyers. The specified strategy is especially important in keeping communication with Millennials consistent (Dutot, Galvez, & Versailles, 2016).

Price

Although NFPC retains its position in the dairy and plastic container markets in the UAE and practically hold a monopoly over the production of the said items, it needs to alter its current pricing strategy slightly to ensure that new entrants to the market will not disrupt its streak of success. Price differentiation will have to be viewed as a necessity; for instance, the products that can be regarded as everyday items will need to be sold at a lower price to attract people and build the foundation for their loyalty toward the company. Innovative and unique products, such as ice-cream with new flavors and created with the help of green technologies as an entirely healthy product, in turn, will require setting the price bar higher to pique customers curiosity.

Promotion

As stressed above, it will be essential to focus on introducing innovative approaches to drive the attention of new audiences toward the firms products. Apart from offering people standard items that they consider part and parcel of their daily routine, the organization will also have to produce innovative solutions that will make people feel enthusiastic about trying the firms goods. Furthermore, the company will have to win the attention of Millennials. Therefore, the promotion strategy will have to be based on integrating modern technologies into the communication process. For instance, the use of social networks to inform target audiences about changes in the firms products, policies, mission, and vision will have to be used. Furthermore, producing post entries for blogs and vlogs will have to be recognized as an important step toward convincing target populations to purchase NFPCs goods.

Marketing Mix: How Company Attracts Its Customers

At present, the NFPC approach leaves much to be desired. It is mostly based on the use of traditional techniques and avoids incorporating innovative solutions. As a result, while the current customers can be defined as loyal, NFPC lacks new clients. Thus, significant difficulties in keeping the companys profit margins at the required level may ensue within a comparatively short amount of time.

Products

The current range of products offered by NFPC is rather narrow. It includes milk, mineral, and sparkling water, and different types of plastic carriers for water and other products (particularly, bags and bottles) (National Food Products Company LLC, 2018). While the latter type does not require changes, diversifying milk-related products must be regarded as a necessity in refreshing NFPCs brand image and introducing it to new audiences. Particularly, new products must feature green technology and the emphasis on expensive products and unique taste experiences.

Place

Because of the lack of a tendency toward using online shopping and delivery services among UAE citizens, NFPC tends to address the needs of offline buyers. The services of numerous retailers are used to provide people with access to NFPCs goods. While the accessibility of NFPCs products is rather high, it is strongly recommended that, apart from retail outlets, the daily delivery of newly developed products such as organic milk should be viewed as a possibility. As a result, the communication process between the company and its customers will be enhanced, with more opportunities for receiving feedback, as well as providing the services of improved quality.

Price

At present, the pricing strategy of NFPC can be defined as average. Although the company does not sell its products at the lowest price possible, the current pricing strategy seems quite legitimate. For instance, cream milk that the firm produces is currently sold at AED 4.73 (Lacnor full cream milk (1 liter), 2018). The specified framework allows targeting general audiences, yet it subsequently deprives the firm of a substantial part of its identity, e.g., as a firm that produces dairy products of outstanding quality, which a high price would signify. Herein lies the necessity to introduce an elaborate system of product segmentation to meet the needs of customers that want luxurious products, the buyers that need unique experiences, and the people that want to purchase regular dairy products at a reasonable price.

Promotion

The promotion strategy deployed by NFPC leaves much to be desired. Because of the willingness to abstain from the use of innovative approaches and being rooted in traditions, the organization misses a lot of opportunities for targeting a wider range of people. Also, the brand image that the firm has been using for decades seems to have worn out its welcome. NFPC needs a new look to meet the needs of Millennials and other audiences.

Segmentation Strategy Analysis: Addressing Customers Needs

The current approach toward segmentation deployed by NFPC is rather basic. Particularly, the firm identifies customers that like milk and mineral water, as well as companies that require plastic carriers for packaging products. Furthermore, NFPC identifies individuals and organizations as its buyers, thus, ensuring that different approaches are used to market its products to them. However, NFPC has been refraining from introducing age- and culture-based customer segmentation models. For instance, when considering milk marketing, NFPC might develop an infant formula and market it to mothers of infants and young children (Kwiecien, Winiarska-Mieczan, Samolinska, Kiczorowska, & Rusinek-Prystupa 2017). Thus, at present, NFPC seems to dismiss a range of opportunities.

Situation Analysis: Recent Triumphs and Current Problems

As stressed above, the current approach toward segmentation that NFPC uses needs revisiting. Because of the increasingly high levels of diversity in the society, as well as the rise in the bargaining power of Millennials, NFPC must consider changing its approach to communication, as well as its branding technique. By incorporating innovative technologies, using social media, and placing a stronger emphasis on healthy products and innovative solutions, the organization will be able to avoid possible stagnation and, thus, will retain its position in the UAE market. Furthermore, with the creation of new and unique products, NFPC may even gain enough competitiveness to enter the global market successfully.

Situation Assessment: Using Advantages and Addressing Problems

It would be wrong to demand that NFPC should abandon its current marketing framework completely. Some of the current elements of the marketing framework must be retained to keep the loyalty levels among the firms old clientele intact. For instance, the use of traditional marketing tools should remain consistent to ensure the provision of crucial information about NFPCs products to its current clients.

That being said, the incorporation of new techniques and the focus on using interactive tools should also be deemed as essential. The identified strategies will allow communicating with a new type of buyers, who are used to trusting social media and utilizing it to explore new opportunities as far as products and services are concerned. Thus, NFPC will have to maintain the balance between traditional and modern media as the elements of its marketing mix.

Solutions and Recommendations: How NFPCs Position Can Be Improved

Reconsidering the current branding technique by developing new products with the emphasis on environmentalism, as well as redesigning communication channels and establishing a direct connection with Millennials as one of its key audiences, must be deemed as the priority for NFPC at present. Although the firm has been managing to retain its monopoly in the UAE environment, new market entries may significantly damage its position by offering unique products and identifying new and profitable solutions. Thus, the firm needs to come up with a unique brand that will send a strong message to the target audiences, particularly, Millennials. Furthermore, the active use of social media and especially social networks as the tools for promoting NFPCs products successfully has to be considered. Thus, the company will be capable of maintaining its position intact and even attract the attention of other customers.

Conclusion: NFPC and Its Priorities in the UAE Market

NFPC has gained the reputation of a company that has been striving in the UAE market quite successfully by delivering essential products such as milk, mineral water, and plastic carriers. However, the company seems to have lost its appeal over the years of its presence in the UAE market. Furthermore, the emergence of new target customers, i.e., Millennials, will have to be taken into consideration when shaping the firms approach toward marketing its goods in the UAE economic environment. Thus, the active use of social media as the tools for communicating with buyers, as well as the introduction of detailed product segmentation and the creation of a new brand based on the principles of environmentalism and customers propensity toward originality and uniqueness must be regarded as a necessity. The suggested strategy toward upgrading the firms marketing technique is bound to affect NFPCs progress significantly by helping it target new audiences and, thus, increase its profit margins extensively.

References

Brand, M. J., Croonen, E. P., & Welsh, D. H. (2016). Successfully managing chain-wide transformational change. Organizational Dynamics, 45(2), 94-103. Web.

Dutot, V., Lacalle Galvez, E., & Versailles, D. W. (2016). CSR communications strategies through social media and influence on e-reputation: An exploratory study. Management Decision, 54(2), 363-389. Web.

Kwiecien, M., Winiarska-Mieczan, A., Samolinska, W., Kiczorowska, B., & Rusinek-Prystupa, E. (2017). The content of magnesium, calcium, sodium and potassium in infant formulas. Journal of Elementology, 22(1), 339-347. Web.

Lacnor full cream milk (1 liter). (2018). Web.

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National Food Products Company LLC. (2018). Web.

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