PROJECT FILE DRAFT

NAME - GEETIKA KAPOOR

CLASS/SEC - XII - F

MARKETING
What is marketing?

Marketing refers to any actions a company takes to attract an audience to the

company's product or services through high-quality messaging. Marketing aims
to deliver standalone value for prospects and consumers through content, with
the long-term goal of demonstrating product value, strengthening brand loyalty,
and ultimately increasing sales.

The four P’s of marketing

In the 1960s, E Jerome McCarthy came up with the 4 Ps of marketing: product,

price, place, and promotion. Essentially, these 4 Ps explain how marketing

interacts with each stage of the business.

The marketing mix consists of various elements, which have broadly been classified into four
categories, popularly known as four Ps of marketing. These are: (i) Product, (ii) Price, (iii) Place,
and (iv) Promotion. These are briefly discussed as follows:

1. Product: Product means goods or services or ‘anything of value’, which is offered to the
market for sale. For example, Hindustan lever offers number of consumer products like toiletries
(Close-Up toothpaste, Lifebuoy soap, etc.).

The concept of product relates to not only the physical product as mentioned in the above
examples but also the benefits offered by it from customer’s view point (for example toothpaste
is bought for whitening teeth, strengthening gums, etc.). The concept of product also include the
extended product or what is offered to the customers by way of after sales services, handling
complaints, availability of spare parts etc. These aspects are very important, particularly in the
marketing of consumer durable products (like Automobiles, Refrigerators, etc.). The important
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product decisions include deciding about the features, quality, packaging, labelling and
branding of the products.

2. Price - Price is the amount of money customers have to pay to obtain the product. In case of
most of the products, level of price affects the level of their demand. The marketers have not
only to decide about the objectives of price setting but to analyse the factors determining the
price and fix a price for the firm’s products. Decisions have also to be taken in respect of
discounts to customers, traders and credit terms, etc. so that customers perceive the price to be
in line with the value of the product.

3. Place - Place or Physical Distribution include activities that make firm’s products available to
the target customers. Important decision areas in this respect include selection of dealers or
intermediaries to reach the customers, providing support to the intermediaries (by way of
discounts, promotional campaigns, etc.). The intermediaries in turn keep inventory of the firm’s
products, demonstrate them to potential buyers, negotiate price with buyers, close sales and
also service the products after the sale. The other decision areas relate to managing inventory,
storage and warehousing and transportation of goods from the place it is produced to the place
it is required by the buyers.

4. Promotion: Promotion of product and services include activities that communicate

availability, features, merits, etc. of the products to the target customers and persuade them to
buy it. Most marketing organisations, undertake various promotional activities and spend
substantial amount of money on the promotion of their goods through using number of tools
such as advertising, personal selling and sales promotion techniques (like price discounts, free
samples, etc.). A large number of decisions are to be taken in each of the area specified above.
For example, in the respect of advertising it is important to decide about the message, the
media to be used (example, print-media–newspaper)

The success of a market offer will depend on how well these ingredients are mixed to create
superior value for the customers and simultaneously achieve their sale and profit objectives. Let
us say a firm would like to achieve necessary volume of sale at a cost that will permit a desired
level of profit. But so many alternative mixes can be adopted by a firm to achieve this objectives.
The issue before a firm then is to decide what would be the most effective combination of
elements to achieve the given objectives.
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1. Type of product

The product chosen is butter.

Butter is manufactured from dairy cream using a churning process. The cream is produced by
passing milk through a separator, which divides the incoming milk into skim milk (0.1% milkfat)
and cream (35-40% milkfat).

The cream is churned until small butter grains form in buttermilk. The buttermilk is drained and
the churning process continues until the grains are kneaded together. Salt is typically added and
this adds flavor to the butter and also enhances its shelf-life. It requires about twenty liters of
whole milk to produce one kilogram of butter.

The churning process results in a water-in-oil emulsion. The final product is around 80% milkfat
and 16% water in the form of very tiny droplets. The smooth texture of butter is closely linked to
the working (kneading) process.

In addition to milk fat and water, normal butter contains salt (1.5-2.0%), trace amounts of
protein, calcium, phosphorous, and various fat-soluble vitamins.

The butter market caters to a number of end industries:

Food processing: Butter is a component of many processed foods, including sauces, baked
products, and confections.

Food Service: Butter is used for baking, cooking, and table service in cafés, restaurants, and
catering services.
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Food Retail: Supermarkets, grocery stores, and specialized food stores are among the retail
establishments where butter is directly sold to customers.

2. Brand name and product

PRODUCT - BUTTER

BRAND NAME - CREAMY CREST

3. Range of the product

Creamy Crest will be offering 6 different butter flavors!! Which will include both sweet and
savory options.

The flavors of butter offered are

1. Classic unsalted butter

2. Classic salted butter
3. Mixed Herbs butter - Herb butter, also known as compound butter, is a versatile
ingredient that combines butter with a variety of herbs and sometimes other flavorings.
It's used to enhance the flavor of many dishes. Here are the components and uses of
herb butter
4. Maple syrup & Cinnamon - Incorporating maple syrup into butter for a deep, rich
sweetness and with cinnamon for a warm, spiced sweetness.
5. Brown Sugar Butter: Mixing butter with brown sugar for a caramel-like sweetness.

These flavored butters can be used in various ways, such as spreading on toast, muffins,
pancakes, waffles, or even using as a sweet topping for vegetables and meats.
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4. Identification mark or logo -

5. Tagline
“Spread the goodness”

The tagline is pun intended. Spread the goodness as in spread it on bread or whatever you like
and spread the goodness with your friends and family!

6. Labelling and packaging

What is Packaging?

Packaging is the activity that involves designing and manufacturing of a wrapper,

container, box, etc., for a product. While crafting a packaging material the primary
responsibilities like protection of the product, easy handling and storage space
should be taken into consideration. Packaging is one of the essential marketing tools,
because it gives customers the first impression of the product, encouraging them to
buy. In simple words, the packaging is a process not only to create a container where
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the product is kept to protect it from physical damage but at the same time has to
be appealing to attract the customers.

What is Labelling?

Labelling is the display of all the information on the packaging material or product
itself. While labelling a product the company has to fulfil and adhere to all the legal
requirements like ingredients, nutritional and safety information mentioned under
Competition and Consumer Act 2010. Most of the customers decide according to the
details mentioned on the labelling of the product.

The labelling for creamy crest would be simple.

The labels would have the name of butter on the package out of all six flavours
provided.

Packaging would contain three levels

1. Primary level - The butter will be wrapped around in parchment or butter

paper as we call it.
2. Secondary level - After the first layer of packaging the wrapped butter will be
put into a thin cardboard box according to the size of the butter.
3. Transportational level - This packaging will be used only for transporting all
individual boxes of the butter together. For example transportation of a 100
units of 100 gram butter boxes together.
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7. Prices and basis of price fixation -

BUTTER FLAVOUR 100G PRICE 250G PRICE 500G PRICE

Classic salted butter 52Rs. 130 Rs. 260 Rs.

Classic unsalted butter 72Rs. 180 Rs. 360 Rs.

Garlic butter 60 Rs. 150 Rs. 300 Rs.

Maple Syrup & Cinnamon 62 Rs. 155 Rs. 310 Rs

Brown Sugar Butter 56 Rs 140 Rs. 280 Rs.

Basis for price fixation for each -

● First the butter will be mass produced then for the different flavours the ingredients will
be added accordingly to each.
● The price has been fixed takin ginto consideration the overall production cost for each &
cost of ingredients that will be used, packaging & labelling costs as well as labour and
machinery costs.
● After taking into consideration the production costs we have kept a 30 - 50% profit
margin for all our different flavours.
● This price range reflects the cost of high-quality ingredients and accounts for production,
packaging, and labor, ensuring a good profit margin for us.

8. Selected channels of distribution (and reasons thereof)

Distribution marketing is the way firms make their products and services available to
consumers. Distribution in marketing is an element of the “place” category in the four P's of
marketing. When many marketers consider place, they focus on where they promote products
and services. However, they must also consider where customers make their final purchase
decisions.
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For Creamy Crest we will be choosing a 2 level distribution channel i.e from manufacturer
(us) to retailers and then straight to thre customers.

Let us understand this is more detail.

A retailer is one of the most popular and effective distribution channels. Retailers include
supermarkets, department stores, specialty stores and big-box retailers. Today marketers
working with retailers can put their products in physical stores, online stores or both. Some
benefits of using a retailer include:

● Product interaction: When consumers buy from brick-and-mortar retailers, they can
interact with products before buying them. Being able to see how items look in person
and even test them out gives consumers confidence.

● Increased product awareness: Retailers can introduce consumers to products they didn't
know about before browsing.

● Diverse promotion strategies: Marketers can work with retailers on strategic placement,
product demonstrations and promotional materials to make their products more
appealing.

● Increased audience: People are often loyal to retailers. Companies selling their products
through retailers can leverage the loyalty consumers already feel towards these outlets.

9. Transportation & Warehousing

At times, the demand and supply for products can be unusually high. At other times, it can be
unusually low. That’s why companies generally maintain a certain amount of safety stock,
oftentimes in warehouses. As a business owner, it would be great if you didn’t have excess
inventory you had to store in a warehouse. In an ideal world, materials or products would arrive
at your facility just in time for you to assemble or sell them. Unfortunately, we don’t live in an
ideal world.
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Transportation - Not all goods and services need to be physically transported. When you get
a massage, oil change, or a manicure, the services pass straight from the provider to you. Other
products can be transported electronically via electronic networks, computers, phones, or fax
machines. Downloads of songs, software, and books are an example. So are cable and satellite
television and psychic hotline readings delivered over the phone.

Quality of butter is largely dependent on temperature. It affects mainly firmness and standing up
properties of butter. For transportation of butter from factory to distributors and from
distributors to retailers, cold chain is essential to maintain.

Butter may be transported either frozen or chilled. For frozen transportation of butter,
temperature range is -16 to -18°C while for chilled transport; temperature range is 1-4°C.
Temperatures may deviate from these values, depending on the particular transport conditions.

Butter must be flash-frozen to protect it from losses in quality. The rapid cooling results in the
formation of small ice crystals which has no negative effect. If, however, the temperature is
reduced very slowly, relatively large ice crystals are formed which can result in losses of quality
(crumbly texture).

10. Promotional techniques

“What is Promotion?” Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers. Through this, the seller tries to influence and convince the
buyers to buy their products or services. It assists in spreading the word about the product or
services or company to the people. The company uses this process to improve its public image.
This technique of marketing creates an interest in the mindset of the customers and can also
retain them as a loyal customer.

Promotion is a fundamental component of the marketing mix, which has 4 Ps: product, price,
place, and promotion. It is also an essential element promotional plan or mix, which includes
advertising, self and sales promotion, direct marketing publicity, trade shows, events, etc.,

Some methods of this procedure contain an offer, coupon discounts, free sample distribution,
trial offer, buy two items in the price of one, contest, festival discounts, etc. The promotion of a
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product is important to help companies improve their sales because customers reaction
towards discounts and offers are impulsive. In other words, promotion is a marketing tool
that involves enlightening the customers about the goods and services offered by an
organization.

For promoting our product we would use ADVERTISING.

Now what is advertising?

The definition of advertising is an industry used to call the attention of the public to something,

typically a product or service.

The definition of advertisement is the means of communication in which a product, brand or

service is promoted to a viewership in order to attract interest, engagement, and sales.

Advertisements (often shortened to ads or adverts) come in many forms, from copy to

interactive video, and have evolved to become a crucial feature of the app marketplace.

For creamy crest we would create accounts on various social media platforms like facebook
and instagram and then advertise our products on those platforms.

We would also reach out to various social media influencers asking theme to promote our
product and in return we will be sending them PR packages (promotional packages).

11. Grading and standardization

Standardisation : The term 'standardisation ' is derived from the word 'standard' which means
the presence of certain desirable qualities like durability,safety,purity and other features like
design,weight,colour,etc in a product.

Standardisation refers to the process of setting certain standards for a commodity on the basis
of its desired qualities. It implies that the different units of the commodity are of a specified and
uniform quality. It facilitates sale of goods through description and increases the confidence of
consumers.
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Grading : It refers to the process of dividing products into classes made up of units
possessing similar characteristics. It involves division of products into classes,lots or groups in
accordance with predetermined grades of quality. Grading helps in fixing and securing
remunerative prices for the products.

Selling butter in India is regulated to ensure safety, quality, and compliance with standards. Key
organizations involved include the Food Safety and Standards Authority of India (FSSAI) and the
Bureau of Indian Standards (BIS). Here are the standardization requirements for selling butter in
India:

1. FSSAI Regulations

● Registration and Licensing: All food businesses, including those producing and selling
butter, must register with and obtain a license from FSSAI.
● Food Safety and Standards (Food Product Standards and Food Additives) Regulations,
2011:
○ Definition: Butter is defined as a product obtained exclusively from milk or cream,
or both, and with or without common salt and annatto or carotene as coloring
matter.
○ Composition:
■ Minimum Milk Fat: 80% by weight.
■ Maximum Moisture Content: 16% by weight.
■ Curd Content: Not more than 1.5% by weight.
○ Labeling Requirements: Proper labeling as per FSSAI regulations, including:
■ Name of the product.
■ List of ingredients.
■ Nutritional information.
■ Declaration regarding vegetarian or non-vegetarian status (Green/Red
dot).
■ FSSAI logo and license number.
■ Net quantity.
■ Batch number, date of manufacture, and best-before date.
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■ Name and address of the manufacturer.

2. BIS Standards

● IS 13690: 1992 – Butter Specification: This standard specifies the requirements for
butter, covering aspects like raw materials, hygienic conditions, sensory and chemical
characteristics, packaging, marking, and sampling.
● Microbiological Requirements: Butter must meet specific microbiological standards to
ensure it is free from harmful microorganisms.

3. Quality and Safety Assurance

● Hygiene and Sanitation: Butter production must follow good manufacturing practices
(GMP) and good hygiene practices (GHP).
● Packaging: Must protect the butter from contamination, physical damage, and
deterioration. Common packaging materials include parchment paper, aluminum foil,
and plastic wraps.
● Storage and Transportation: Butter should be stored and transported under refrigeration
to maintain quality and prevent spoilage.

4. Additives and Preservatives

● Permitted Additives: Only permitted additives as per FSSAI regulations can be used in
butter, such as certain colors (annatto, carotene).
● Prohibition of Harmful Substances: The use of harmful substances, including certain
preservatives and synthetic flavors, is prohibited.

Cream for butter making is usually standardized between 35-40% fat. Standardization helps to
produce butter of desired composition particularly in respect of its fat content and also
minimized losses of fat in butter milk.

The Food Safety and Standards Authority of India (FSSAI) has been established under Food
Safety and Standards , 2006 which consolidates various acts & orders that have hitherto
handled food related issues in various Ministries and Departments. FSSAI has been created for
laying down science based standards for articles of food and to regulate their manufacture,
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storage, distribution, sale and import to ensure availability of safe and wholesome food for
human consumption.

For creamy crest we would take all necessary steps to ensure that our production of butter will
be such that we wont go against any such standardisation requirement.