Brookside Dairy Limited Marketing Plan

About the company

Brookside Dairy Limited is based in New Zealand. The company intends to enter the China and Middle Eastern markets with its milk powder product. This paper presents the company’s financial statement and a marketing plan to penetrate the markets in China and the Middle East.

Financial statement

Opening entries to set up the accounts

Brookside Dairy Limited
Balance sheet statement

As at 1^st February 2015

Assets		Amount ($)
Current Assets
	Cash	105,000
	Petty Cash	5,000
	Temporary Investments	500,000
	Inventory	1,505,000
	Supplies	190,000
	Prepaid Insurance	70,500
	Total Current Assets	2,042,500
Investments		1,800,000
Property, Plant & Equipment
	Land	270,500
	Land Improvements	320,500
	Buildings	900,000
	Equipment	1,105,000
	Total fixed assets	2,105,000
Intangible Assets
	Goodwill	535,000
	Trade Names	1,101,000
	Total Intangible Assets	1,325,000
Other Assets		13,000
	Total Assets	3,621,500
Liabilities		Amount
Long-term Liabilities
	Notes Payable	120,000
	Bonds Payable	1,900,000
	Total Long-term Liabilities	2,201,000
Stockholders’ Equity		Amount
	Capital	1,637,500
	Total Liabilities & Stockholders’ Equity	3,754,500

The balance sheet is prepared based on the assumption that the business will commence the milk powder export on 1^st February 2015. To start up the export business, the owners will require a total capital amounting to $3,754,500. The owners will raise $1,637,500 and the remaining will be obtained by using long term debt facilities amounting to $2,030,500.

Brookside Dairy Limited

Trial balance

As at 1^st February 2015.

Account	Debit	Credit
Cash	9,500
Petty Cash	600
Temporary Investments	51,000
Inventory	245,000
Supplies	21,000
Prepaid Insurance	9,600
Investments	170,000
Land	31,500
Land Improvements	35,300
Buildings	790,000
Equipment	1,100,000
Goodwill	355,000
Trade Names	1,150,000
Other Assets	19,000
Notes Payable		101,000
Bonds Payable		2,050,000
Capital		1,715,000
Total	3,716,000	3,716,000

Forecast Monthly Cash Flow Budget Statement for the Year 2015
Particulars	Start up	Feb	March	April
Estimated Sales Units		1000	2000	3000
Sales Revenue		25,500	51,000	76,500
Cash Inflow
Accounts Receivable		25,500	51,000	76,500
Initial capital	1,637,500
Total (A)	1,637,500	25,500	51,000	76,500
Cash outflow
Accounts Payable		11,200	22,400	27,500
Worker wages		13,300	13,300	13,300
Factory Rent		8,300	8,300	8,300
Electricity and Utilities		1,420	1,420	1,420
Other Admin expenses		1,020	1,020	1,020
Sales Promotion		4,120		4,120
Total (B)	447,600	39,360	46,440	69,010
Net cash (A) – (B)	240,400	-13,860	4,560	7,490
Opening balance		240,400	226,540	231,100
Closing Cash	240,400	226,540	231,100	238,590

Marketing plan

Introduction

Basically, this marketing plan targets the China and the Middle Eastern bloc markets. In order to release the final milk powder product to the targeted markets, the process will commence with buying milk in New Zealand and then shipping it to a processing factory in China. The processing factory will then release the final product into the market. The penetration is discussed in the marketing plan below.

Doing business in China and the Middle East

Marketing challenges

Political requirements conformity

The essential political requirements of Brookside Limited towards the entry planning and development phases are those that impact directly on the stability of the Chinese and Middle Eastern cultures. The overall development levels exhibited by the Middle Eastern market are relatively stable and high though still fragile, thus, discouraging prospective investors. The rate at which the economies in the Middle East and China are growing is incredibly rapid and this has led to the diversification of the economy.

Demographic segmentation

The penetration strategy should be that which causes minimum disturbances to the company in terms of financial resources and the dairy organizational activities. The demographic factors are deeply entrenched in the religious perceptions in China and the Middle East. These two markets are characterized by Buddhist and Islamic religions respectively. Thus, the company must present its milk powder product within these religious demographic characteristics to ensure that the potential customers are in a position to identify with the product.

Legal aspects

The provisions of patent and trademark rights in these markets have helped to eliminate the chances of fraudulent attempts on a company’s product. The trademark rights in China and the Middle Eastern regions will ensure that the company is not disadvantaged. The company could take up this as an assurance of the protection of its product against illegal dealers.

Marketing opportunities

The inflation rates in the target markets are at a minimum and the currency management authorities are confident that the rates are not only minute but also manageable. Thus, it will not have a substantial macro effect on the market demand pillars. The company’s revenues are projected to increase if it opts to invest in these markets. Besides, these markets have more than one billion potential customers.

Entry strategy

With a capital base of more than three million dollars, the company possesses veto powers above other milk powder exporters. Reflectively, to capture the distribution channel, the beneficial interests will be distributed across the commodity pool in the two markets. Also, this strategy will facilitate the restructuring of effective sales and public awareness to develop product knowledge among the targeted clients in China and the Middle East. Correspondingly, the Brookside Company may seek to offer different packages and sizes for the milk powder product to ensure that customers, who buy in relatively smaller quantities but in bulk, are integrated into the marketing plan. Besides, the plan should offer a variety of different distributions channels that will be vital in the attraction of new customers in the Middle East and China markets.

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