Felivaru Fisheries Company Diversifies with New Product for 40th Anniversary

MARKETING PRINCIPLES

Executive Summary

INDIVIDUAL Felivaru Fisheries Company (FFC), a fish exporting company located in the Maldives, has been in business for 39 years exporting canned tuna all over the world. During the time the company has built a strong image in both the international market and the domestic market. However recently the company has been separated from the mother company (MIFCO) and established as a new company. With this change, the company has diversified its production line by introducing fast food items. For the upcoming 40th Anniversary Felivaru is planning to launch a new product to the domestic market. Delivery Lobster Bisque” which is a soup of French origin as the original founders of the company was French. The soup has been modified to the taste of Maldives by replacing the whine with a new secret formula found by Felivaru researchers. Delivery believes that this new product would increase the market share of the company and would be a “HIT” in the domestic market.

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INDIVIDUAL

1. Science then the company has diversified its production line by introducing fast food items, especially “Ras Ainu” products. The 100% government-owned company has the capacity of processing more than 40 megatons of canning and cooked frozen lions with the help of a cannery which has the capacity of canning 30 tons of raw fish in 8 hours shift (operate in 3 shift daily) and a fish plant which could produce 40 Megatons of meat daily. At present 7 vessels are been used to collect fish from all over the Maldives and been stored in fish storage capable of storing a total of 650 tones.
2. Vision To become the leading fish processing and Distribution Company in the Maldives, for both local and international markets, through maintaining high quality and achieving total customer satisfaction.
3. Mission We are committed to quality fish products, produced from sustainability caught fish, which will enhance customer satisfaction, through our constant ISO- certified and HACCP compliant system. We are also dedicated to becoming the most profitable leading global provider of a variety of healthy fresh and frozen fish products.
4. Product. The products of Felivaru can be divided into 3 different product lines named Ras Ainu, canned fish, and fertilizers. The details of these lines are being shown in figure 1 on the next page as the product mix of Delivery. Although this both Thera fana and Foni ma gula were just able to gain enough market share to be the market challenger by obtaining a market share of 25% to 30% each while Disku, Roshi and Kulhi uvaali can be considered as a “Flop” unable to secure more than 10%. Moving on to the canned fish product line Tuna steaks in the brain can be considered as the “King” of the European market gaining a solid 39% market share. Simultaneously other steaks products also became market competitors by acquiring a market share of more than 19%. In the domestic market tuna chucks in the brain have ruled counting the number to a superb 60%. Other chunks products also have a market share of more than 30% except for tuna chunks in olive oil, which only could capture a market share of 7%. Delivery is the one and only producer of fish meal in the domestic market. Due to the fact of its preemptive advantage, they were able to gain a perfect 100% in the domestic market. However, in the international market Felivaru fish meal could only gain 16% of market share.
5.  Price. Canned fish
6. For the products exciting in the canned fish product line, there are numerous competitors competing in the market. They're no such difference in the prices of products in the canned fish product line. However, it is the company’s policy to give discounts on bulk buyers. However, when MIFCO comes to the market in the second quarter with their mass production capacity the supply would be increased forcing Felivaru to reduce the price in order to remain as a market leader
7. Fertilizers. A different pricing policy named penetration pricing strategy is been castoff on fertilizers. In 2010 the prices have been set relatively low in order to attract new customers and gain more market share. The minute this goal was achieved the price has been increased in different phases.
8. Place. At the present, only tuna chunks products and fertilizers are being exported. The main markets for those products are there in Asia and Europe while all other products excluding chucks product is been sold in the domestic market. Currently in the international market products are been available in selective areas according to demand. Though this in the domestic market, Felivaru products can be purchased from almost each and every retailer outlet near consumer residence. Therefore it can be concluded that intensive distribution is being used in the domestic market.
9. Potential entrants (Threat of new entrance).  The threat of new entrants is low as a huge investment is needed to set up a fish canning factory and run it.
10.  Suppliers [low]. The bargaining power of Suppliers will be low as there are many suppliers in the market who could supply the water and oil used in the production. Also, there are thousands of fishing vessels in the country.
11.  Buyers [high]. The bargaining power of suppliers would be high as there are many substitutes available in the market.
12. The treat to substitute. There are substitutes from other companies like MIFCO which has little or no difference.
13. Assumptions. Delivery expects to increase the collection of fish from the new boats or fish collecting station which would increase the production by 10% to 20%. With the help of this increase in production, it is expected to increase the export of chunks by 15%. The prices of oil and water used in canned fish production are expected to be the same however the price of fish is expected to rise 4% during the year. Objective The purpose of this marketing plan is to launch “Felivaru Lobster Bisque” to Maldivian Market on the 40 Anniversary (7th November). Lobster bisque is a creamy and smooth soup of French Origin. It contains Milk, Lobster, Wheat, and Clam. The product is designed in such a way that it only requires to be heated in high temperature for 3 minutes in a microwave oven (time very on temperature and also can be heated in a normal cooking store).
14. Positioning statement Similar to all other Felivaru products the slogan would be “GENUINE MALDIVES”. Delivery lobster bisque is the one and only fast food soap in the market and also the first product made from lobster in the Maldives. Therefore the product will be marketed in such a way to get the loyalty of lobster lovers and soup lovers. Also, a unique formula has been used to replace the wine in the soap designing it away as a “Halal” product.
15. Branding Strategy. The brand name for this product is “Felivaru Lobster Bisque”. As the Bisque is made by Felivaru from lobster the name “Felivaru Lobster Bisque” gives a simple and easy understanding of what the product is to its customers. The reason behind choosing an English name is almost all people in the target market would understand English and also by changing the name of the product Felivaru does not want to bring any difference to the dish name converting it into Dhivehi.
16. Product Strategy tourism industry and the English name would attract them to this French origin soup and would help them to identify the product.  Delivery Lobster Bisque is a sweet and creamy soup of French origin re-designed by replacing the whine in it with a unique and secret formula to make the product Halal certified to 100% Muslim society of Maldives. The main advantage of Felivaru Lobster Bisque is its easiness and fastness in preparing. Just a 3 minute heating in the microwave and the bisque is ready to eat. The bisque is packed in a plastic cup that is 9 inches long and has a diameter of 6 inches. The plastic cup is covered with a paper label which gives information about the bisque.

Reference

1. http://www.epa.gov.mv/images/stories/laws%20and%20Regulations/2011/Fisheries%20%20Law%20.pdf
2. http://www.epa.gov.mv/images/stories/laws%20and%20Regulations/2011/Protected%20Marine%20Life.df Felivaru, 2010, Capacity and Infrastructure, [online].
3. http://www.felivaru.com/?page_id=35 Delivery, 2010.
4. http://www.felivaru.com/?page_id=14 VisaHQ, 2012.
5. http://maldives.visahq.com/customs/BM/C/41/22.

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