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A Marketing for Yollies - Business Plan Example

Summary
The paper "A Marketing Plan for Yollies" is an exceptional example of a business plan on marketing. The current report has discussed the marketing plan for Kerry Food which is a well-known brand in the food and beverage industry. The aim of this report is to outline the marketing plan for Yollies for the next three years. …
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Extract of sample "A Marketing for Yollies"

Marketing Plan for the next 3 Years for Yollies

Executive Summary

The current report has discussed about the marketing plan for Kerry Food which is a well known brand in food and beverage industry. The main aim of this report is to outline the marketing plan for Yollies for next three years. It is a newly developed innovative product which offers Yoghurt on a stick. For constructing the plan, external analysis has been done by using PEST tool. It helped in understanding the external environment that can have impact on the Yollies. Further, micro analysis is conducted through analysing market, company, customer and competitor. From the analysis, it has been known that Yollies can be able to build its market and would contribute in increasing the sales performance and market share of the company. SWOT analysis helped in assessing the internal and external aspects of Yollies. It was found that government initiative of meal system can be one major threat for the product. The use of Ansoff Matrix entailed that the product can be launched in the established markets like UK and Ireland. These markets can ensure high success of Yollies and better return on investment. On the other hand, the use of marketing mix showed that the company may need to employ different promotional mix to attract more customers. In the later part of the report it has been suggested that investment to be made in marketing campaign for gaining higher future success.

Table of Contents

1.0 Background and Introduction4

2.0 External Analysis– PEST Analysis4

2.1 Political Factors4

2.2 Economical Factors5

2.3 Social Factors6

2.4 Technological Factors6

3.0 Micro Analysis7

3.1 Market Analysis7

3.2 Company Analysis7

3.3 Customer Analysis8

3.4 Competitor Analysis8

4.0 SWOT Analysis9

SWOT of Yollies9

Principle Assumptions underlying the plan10

5.0 Marketing Objectives & Strategy10

5.1 Marketing Objectives10

5.2 Strategy11

Target11

Positioning Statement12

6.0 Marketing Mix12

6.1 Product12

6.2 Price13

6.3 Place13

6.4 Promotion13

7.0 Implementation, Budgets and Controls13

Implementation13

Budget14

Control15

8.0 Conclusions and Recommendations15

Reference List16

  • 1.0 Background and Introduction

Marketing strategy is all about combining the marketing objectives in one plan through market research and focusing on appropriate product mix. Developing a marketing strategy requires analysing internal and external environment for effectively marketing the product in the market (Dishman and Calof, 2008). In context to that, a case of Kerry Food has been considered which operates in food and beverage markets. The product portfolio of the company is Dairy &Savoury, Beverage, Cereal & Sweet and Nutrition (Kerrygroup, 2016). The company has produced a new product Yollies-yoghurt on a stick for kids and the company is planning to market the product in the UK. Therefore, the marketing plan for Yollies would be developed for the next three years by focusing on customer trends and market growth.

  • 2.0 External Analysis– PEST Analysis

According to Cadle, Paul and Turner (2010), PEST analysis is effective for any organisations as it enables them to determine the implications of penetrating into new markets both globally and nationally. Also, it helps in exploiting and identifying the new opportunities (Ho, 2014).

    • 2.1 Political Factors
  • Tax: Sugar tax needs to be considered by the company as to fight obesity, the WHO (World Health Organisation) stipulates a 20% tax on sugary drinks. It has been found that in the UK, more than 30000 people die every year due to obesity (Van Ansem et al. 2015). Therefore, sugar levels require to be taken in account as the main target market for Yollies are children. However, if the UK government increases the tax rate on sugar usage, then it can affect the production of Yollies. Thus, Kerry Food would have to use the sugar in a sustainable manner or other alternatives have to be drawn.
  • Consumer Protection Law: The Kerry Food is required to follow and abide by Consumer Protection Act, 1987 so that only quality product is supplied to the customers (Williams et al. 2015). The company may need to maintain that no artificial colour and added sugar is used in Yollies that can affect the health of the kids. Abiding by the law would create good impression on the customers and they would be interested in buying the product.
  • Employment Law: Kerry Food needs to adhere to the UK Employment Rights Act, 1996 for providing safe and secure environment to the workers. Also, discrimination shall not be allowed in providing wages or benefits (Simpson, 2009). Therefore, following the law would support the company in receiving better engagement of workers in marketing of Yollies. However, if the company fails then it can lead to shutdown of the company and production of Yollies.
    • 2.2 Economical Factors
  • Economic Growth: The GDP of the UK has increased by 2.1% in 2016 from the last year (2015) and it is expected that the rate would increase to 2.55% by the end of the year (Oecd.org, 2016). The economy of the nation is growing which indicates that Kerry Food would be able to market Yollies in successful way. However, the inflation rate in the country has increased by 0.3% as of April, 2016 (Goodwin and Beck, 2016). It indicates that lower-income people would find it difficult to buy the product due to high inflation rate. Therefore, the company might have to target on the high income group consumers for selling Yollies.
  • Labour Cost: In the UK, the cost of labour is below average which indicates that the company can get productive workforce in producing Yollies at a low cost (Boulhol et al. 2011). Due to this, the operational costs can also be reduced that might be effective in increasing the brand value of Yollies in the country.
  • Income: Income of individuals in the UK is also rising which points that the company can target them for selling Yollies. Average gross salary as on 2014 is £2480-£3814 per month which increased by 4.7% from 2007 (Goodwin and Beck, 2016). Therefore, increase in the salary would make the customers spend more on buying Yollies.
    • 2.3 Social Factors
  • Health Consciousness: Obesity among the children is the major concern in the UK. Therefore, the parents of the kids may not be willing to allow their children to consume unhealthy products as it can affect their health (Stamatakis et al. 2010). The company would require guaranteeing that there are no added minerals in Yollies that can hamper the health. Thus, ISO standards need to be mentioned on the package to ensure quality of the product.
  • Culture: According to Jin and Rashad (2015) UK’s people are quite fun, loving and attractive. Therefore, there is no or few societal pressure which positively influences their buying decisions. The people are more independent for taking decisions which is a positive sign that Kerry Foods can target these kids for their product.
  • Education: The people of the selected country are mostly educated which influences their buying decisions (Albiser, 2015). Therefore, the educated people would know that Yollies contains natural products that are good for health. Also, the company would not have to explain in much detail about the ingredients used for producing the products to the educated individuals.
    • 2.4 Technological Factors
  • Rate of Technological Change: UK is technologically advanced nation which largely supports in the economy growth. Most of the UK organisations have gained success in providing their product and services to the marketplace (Peters et al. 2013). Also, use of social media and internet is high in the country. Therefore, Kerry Food can use social media for creating awareness about Yollies among target audience.
  • R&D Activity: It would be effective in doing R&D activity as it would allow the company to make Yollies more innovative and attractive for the consumers in competitive business environment.
  • Packaging: A smart packaging technology can be useful in protecting Yollies from getting expired or damaged soon (Peters et al. 2013). It would save the packaging process time of the company and also the customers would know the ISO mark, ingredients used, etc.
  • 3.0 Micro Analysis
    • 3.1 Market Analysis

According to the report of Keynote (2015), the chilled desserts and yoghurt drinks sector of the UK valued around £2.42 billion in 2014 which increased by 0.7% from 2013 and by 15,3% from 2010. The growth in the milk and dairy products showed an increase of 23.7% in 2010 and 24.7% in 2014 (Markey et al. 2015). With the growth in the market, the yoghurt in 2014 generated sales of £1.48 billion and it is anticipated to grow in future. On the other hand, report of Mintel (2015) presented that health concern of the parents situate pressure on the market, however some parents are in favour of healthier versions of snacks that would have less or no impact of kid’s health. It has been studied that out of ten, nine parents are more likely to purchase sweet snacks for their kids and unhealthy snacks are mostly ignored (Ronit and Jensen, 2014). Moreover, as per the forecast from 2014-2019 showed that snack market of kids would grow and demand would significantly rise (Snac1ma.org.uk, 2014).

Further, it has been reported from Keynote (2015) that consumption of yoghurt is popular in the UK and despite of decrease in per capital consumption, the sales of yoghurt showed growth (Case Study, 2016). Therefore, it can be indicated that Yollies can be well placed among the target audience and market. Apart from that, Mintel’s report mentioned that there has been decline in the launch of new kid’s snack products in 2014 by 23% as most of the people considered snacks to be unhealthy for children (Kaur et al. 2015). However, it is forecasted that kid’s parents are receptive to product innovation which ensures that Kerry Food can gain profit from their Yollies product.

    • 3.2 Company Analysis

Kerry Food is one of the leading consumer brands in Europe and Ireland as the company offers range of food products for different age groups. Currently, the company deals in 11 brands (Kerrygroup, 2016). Being the known brand, the company is able to build strong customer relationships which contribute in its growth. It also largely supports the company to be a tough competitor in the market. On the other hand, the business model of the company helps in continuous improvement and builds a strong network with the businesses around the world (Zott and Amit, 2008).

The firm infrastructure is considered as the weakness of Kerry Food. It has been reported that company culture is not well organised and due to that, work process gets slower (Kerrygroup, 2016). However, the employee resources of the company are productive and they work according to the mission and goals of Kerry Food. Also, the management encourages the workers to participate in the company’s future plan. Further, the total net assets of the company have increased to £2235.6 million in 2014 which supports in meeting the liabilities (Kerrygroup, 2015).

    • 3.3 Customer Analysis

The major target customers of Kerry Food are children for its Yollies product. The kids aging 10-17 years consume more snacks like flavoured milk, cookies, cakes, soy or spoonable yoghurt, etc (Case Study, 2016). It has been studied that on average children spends £2-£5 a day for consuming snacks. The kids prefer other snacks over yoghurt due to less variability of yoghurt products in the market (Snacma.org.uk, 2014). However, there are very few evidences about children disliking yoghurt. Therefore, it can be analysed that Yollies can be able to create its market among the kids.

On the other hand, the report of Mintel shows that half of the yoghurt eaters in the UK are concerned about the added sugar content in the yoghurt. It is believed that yoghurt consumption can increase obesity, affecting the health (Store.mintel, 2015). Also, the parents of the kids think that artificial ingredients are more in lighter version of yoghurt which forbids some to consume it (Keynote.co.uk, 2016). Therefore, such attitude and behaviour towards yoghurt can impact on the market of Yollies. It is required that Kerry Food would have to build effective strategies and promotional plan to attract the consumer. However, yoghurt is considered as healthy product by the people and it is a positive sign for the company to stimulate them to consume Yollies.

    • 3.4 Competitor Analysis

The food and beverage firms can be possible competitors of Kerry Foods. The potential rivals could be Associated British Foods (ABF) Plc and Westbury Dairies Limited (WDL) (Oecd.org, 2015). The strength of ABF is that it is geographically diversified and has wide business operations. The company has strong brand name around the world which helps in procuring resources from different channels. However, the major weakness of the company is limited liquidity position which entails that it lacks adequate cash reserves (Abf.co.uk, 2012). On the other hand, the strength of WDL is that in whole of the UK, the company supplies skimmed milk and other dairy products. Therefore, the company has strong customers and efficient employee base which supports in earning sustainable income. The weakness of WDL is that it has weak promotional activities (Dairy.ahdb.org.uk, 2012).

The strength and weakness analysis of the competitors is effective for Kerry Foods in building rival strategies for Yollies. Moreover, the firm would know that how much they need to invest in Yollies promotional actions so that large number of customers can be attracted and competitive advantage is gained (Whitla, 2009). It can be pointed that Kerry Foods can face tough rivalry from WDL than ABF as Westbury firm is supplying and developing similar yoghurt product in the market of the UK.

  • 4.0 SWOT Analysis
    • SWOT of Yollies

Strength: Yollies is an innovative product by its contents, ingredients and shape. It is produced with full of Calcium and Vitamin D which will not affect kids health. The other strength is that Yollies has high market potentiality.

Weakness: The market share of the company is one major issue. Due to this, the competitive markets can create pressure and can construct problem for Yollies to increase its market in quick time (Kaufmann et al. 2015). The other weakness is that other local and international dairy firms are penetrating into the UK market and also subsidiaries are set by large firms which could challenge the Yollies business.

Opportunities: As the market of yoghurt in the UK is sustainable then it can be indicated that Yollies can grow in the market. Moreover, the company have their own suppliers which can help in controlling the cost and production of Yollies and in turn, huge opportunity can be created for the product. Also, through global consumers and emerging markets, global capability can be tapped for marketing the product (Case Study, 2016).

Threats: Companies like Westbury and Arla Foods Plc can be a major threat as they too launch innovative yoghurt products. The sales of Yollies can be affected as the UK government has initiated meal system for the children.

    • Principle Assumptions underlying the plan

It is known that for creating a market or launching a product, a firm requires various approaches for conducting marketing process. With respect to the business environment of Kerry Food, it is assumed that;

  • Market of the UK is favourable for Yollies.
  • Price competition will decrease the price levels by 6% across all product portfolios.
  • The company will be able to increase their market share.
  • New product of yoghurt will be introduced by the major rivals in the market by the end of fourth financial quarter.
  • Growth of sugar snacks will be restricted by recent policies and systems of the government.
  • 5.0 Marketing Objectives & Strategy
    • 5.1 Marketing Objectives
  • To attract more numbers of customers through adopting different promotional techniques and tools.
  • To increase customer base for Yollies to 26% by the end of the third year.
  • To partner with supermarkets for increasing the sale of Yollies.
  • To increase the sale to 12% by the end of first year.
    • 5.2 Strategy
      • Target

The prime target of Yollies is the kids that age between 6 to 14 years. The children have been targeted, as the report of Mintel shows kids consume more such types of snacks in comparison to adult or older age. It has been studied that parents are majorly concerned about the kids’ lunch time food. According to Mintel report, 90% parents are more likely to provide sweet snacks to their kids (Store.mintel, 2015). For this cause, it shall be pointed that Yollies could draw their attention to purchase it.

On the other hand, Ansoff Matrix (See below figure 1) can be useful for analysing the strategies that would be effective for Yollies market. In context to market penetration, the company can increase market share by selling Yollies product to new customers within the UK and Ireland markets. Thus, the product can be produced for existing markets. However, the market expansion is less likely possible as Yollies is completely new innovative product and has no reach. Also, diversification strategy would not be effective as the company might be facing high risk (Chen et al. 2014).

Figure 1: Ansoff Matrix

Source: (Author’s Creation)

      • Positioning Statement

According to Bezawada and Pauwels (2013), when any product or service is launched in the market, the management responsibility increases in order to create a good image of the product among the customers. In relation to that, the management of Kerry Food need to undertake various ways for promoting Yollies in the market. The product can be advertised through different media like television which can make people to be familiar with aspects of product (Albuquerque et al. 2012). Moreover, strong hold needs to put in the market through healthier quotients of the product such as on Calcium and Vitamin D. Also, the parents need to be convinced that Yollies is a healthy product to consume. Therefore, all these aspects can help Yollies to make strong position in market.

  • 6.0 Marketing Mix
    • 6.1 Product

Kerry Food will be launching new brand Yollies where the customers would be offered Yoghurt on a stick. The kids would be experiencing flavour of yoghurt as ice-cream for the first time. Yollies will be containing 4mg Vitamin D and 65mg calcium so that yoghurt would have healthy affect on the kids.

    • 6.2 Price

Yollies would be reasonably priced. For 100mg of Yolies, £2 will be charged. It would help in creating strong market among the kids which would further increase the sale of the product (Whitla, 2009).

    • 6.3 Place

The product shall be promoted majorly in the UK and parts of Ireland. Moreover, the product will be distributed in various supermarkets such as NISA, ASDA, etc. It would help in making more number of kids to be aware about Yoghurt-on a stick which can contribute in its sales.

    • 6.4 Promotion

Yollies can be promoted through advertisement of Yollies in the form of billboard advertising, TV commercials, etc. Sales promotion technique such as providing gift on buying 5 Yoghurt-on a stick can attract kids. On the other hand, direct selling and sponsorship can be used by the company. It would help in the promotion of Yollies and more number of people would be informed about the innovative products and its relative cost (Henley et al. 2011).

  • 7.0 Implementation, Budgets and Controls
    • Implementation

Table 1: Implementation Plan

Task

Week 1

Week 2-3

Week 4-6

Week 7-8

Week 9-11

Week 12-13

Week 14-16

Week 17

Company Analysis

 

 

 

 

 

 

 

 

Customer Analysis

 

 

 

 

 

 

 

 

Competitor Analysis

 

 

 

 

 

 

 

 

Ventures

 

 

 

 

 

 

 

 

Market Segmentation

 

 

 

 

 

 

 

 

Public Relations Campaign

 

 

 

 

 

 

 

 

Direct Mail Marketing Campaign

 

 

 

 

 

 

 

 

Online Banner Ads

 

 

 

 

 

 

 

 

Sponsored Events

 

 

 

 

 

 

 

 

Social Media Program

 

 

 

 

 

 

 

 

Mobile Marketing Website Updates

 

 

 

 

 

 

 

 

Collateral Updates

 

 

 

 

 

 

 

 

Execute Plan

 

 

 

 

 

 

 

 

(Source: Author’s Creation)

    • Budget

Table 2: Budget

Items /Estimated Costs

Year

2016

Television advertisements

7000

9500

12000

Social media campaign

3500

4000

5000

Digital advertisement

13000

14500

16000

Business cards

3000

3000

3000

Brochure and flyers

3000

3000

3000

Promotional material

7000

9000

12500

Departmental costs

17500

20000

25000

Marketing research cost

10000

12000

13500

Salaries of marketing staff

35000

43000

54000

Technology

60000

80500

1200000

Freight inward charges

40000

43000

47500

Total Costs (£)

199000

241500

1391500

(Source: Author’s Creation)

    • Control

In order to assess the success of the marketing plan for Yollies, the management is required to undertake control measures. The management can recruit experienced marketing officials for monitoring the activities. It would help in knowing any error in the plan and accordingly effective measures can be undertaken (Mason and Leek, 2008). Moreover, the sales generated in first year would inform whether the developed marketing plan has been successful or unsuccessful.

  • 8.0 Conclusions and Recommendations

The overall study focuses on the marketing plan of Yollies developed by Kerry Food. It has been known from various analyses that the market of UK would provide positive opportunity to Yollies to grow among the kids. However, the management of the company need to ensure that the product is innovative as the market is extremely dynamic in order to sustain for long period. Moreover, the discussed marketing mix can be effective for the product to grow and ensure high sales and income to the company.

On the other hand, it can be suggested that the company need to innovate the product on regular intervals so that any similar product of competitors can be tackled. Also, the high investment shall be made on the marketing campaign for reaching out to more kids and create a large market for Yollies yoghurt-on a stick.

  • Reference List

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Albiser, É., 2015. Education indicators in focus. OECD, 1(2015), pp.2-4.

Albuquerque, P., Pavlidis, P., Chatow, U., Chen, K.Y. and Jamal, Z., 2012. Evaluating promotional activities in an online two-sided market of user-generated content. Marketing Science, 31(3), pp.406-432.

Bezawada, R. and Pauwels, K., 2013. What is special about marketing organic products? How organic assortment, price, and promotions drive retailer performance. Journal of Marketing, 77(1), pp.31-51.

Boulhol, H., Dobbelaere, S. and Maioli, S., 2011. Imports as product and labour market discipline. British Journal of Industrial Relations, 49(2), pp.331-361.

Cadle, J., Paul, D. and Turner, P., 2010. Business Analysis Techniques. COMAS, 1(2010), pp.3-244.

Case Study, 2016. Yollies - Yoghurt on a stick

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Jin, D. and Rashad, Y. O., 2015. The Review of Contemporary Branding Techniques that can Influence Current Consumer Buying Behavior. Global Journal of Management And Business Research, 15(6), pp. 1-4.

Kaufmann, H.R., Czinkota, M.R. and Zakrzewski, M., 2015. B2B and internal relationships and curative international marketing: A polish case study. Industrial Marketing Management, 51(1), p. 69.

Kaur, A., Scarborough, P., Matthews, A., Payne, S., Mizdrak, A. and Rayner, M., 2015. How many foods in the UK carry health and nutrition claims, and are they healthier than those that do not? Public health nutrition, 1(2), pp.1-10.

Kerrygroup, 2015. Kerry Group Annual report 2014. [online] Available at: <http://www.kerrygroup.com/docs/Annual-Report-2014.pdf> [Accessed 4 June. 2016].

Kerrygroup, 2016. Food Ingredients - Flavour Manufacturer - Global Food Technology | Kerry Group. [online] Available at: <http://www.kerrygroup.com/> [Accessed 4 Jun. 2016].

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Mason, K.J. and Leek, S., 2008. Learning to build a supply network: an exploration of dynamic business models. Journal of Management Studies,45(4), pp.774-799.

Oecd.org., 2015. Competition and value distribution along the food chain. [online] Available at: <https://www.oecd.org/site/agrfcn/31OCT_SESSION3_PANEL3_KREDDLER.pdf> [Accessed 4 June 2016].

Oecd.org., 2016. United Kingdom - Economic forecast summary (June 2016) - OECD. [online] Available at: <http://www.oecd.org/economy/united-kingdom-economic-forecast-summary.htm> [Accessed 4 June 2016].

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Ronit, K. and Jensen, J.D., 2014. Obesity and industry self-regulation of food and beverage marketing: a literature review. European journal of clinical nutrition, 68(7), p. 753.

Simpson, B., 2009. The Employment Act 2008's Amendments to the National Minimum Wage Legislation. Industrial Law Journal, 38(1), pp. 57-64.

Snac1ma.org.uk., 2014. Celebrating the UK snacks industry. [online] Available at: <http://www.snacma.org.uk/factsheets/Celebrating%20Snacks%2028Nov14.pdf> [Accessed 4 June 2016].

Stamatakis, E., Zaninotto, P., Falaschetti, E., Mindell, J. and Head, J. 2010. Time trends in childhood and adolescent obesity in England from 1995 to 2007 and projections of prevalence to 2015. Journal of Epidemiology and Community Health, 64(2), pp. 167-174.

Store.mintel, 2015. Ice Cream and Desserts - UK - Consumer market research report - company profiles - market trends - 2015. [online] <Available at: http://store.mintel.com/ice-cream-and-desserts-uk-june-2015> [Accessed 4 Jun. 2016].

van Ansem, W., Schrijvers, C., Rodenburg, G. and Mheen, D., 2015. Children’s snack consumption: role of parents, peers and child snack-purchasing behaviour. Results from the INPACT study.European journal of public health, 25(6), pp.1-7.

Whitla, P., 2009. Crowd sourcing and its application in marketing activities. Contemporary Management Research, 5(1), pp. 16-26

Williams, E.B., Hooper, B., Spiro, A. and Stanner, S., 2015. The contribution of yogurt to nutrient intakes across the life course. Nutrition Bulletin, 40(1), p. 9-32.

Zott, C. and Amit, R., 2008. The fit between product market strategy and business model: implications for firm performance. Strategic management journal, 29(1), pp.1-26.

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