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Planning process
marketing strategy
Surlat

Members:

Julio Aedo

Cristobal Molina

Rodrigo Rivera

May the Urzúa

Teacher: Pablo Andrés Müller Ferrés

07/06/2019
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Introduction

As an introduction, we will examine the so-called SWOT of the company "Surlat" that
it is a tool that allows for the establishment of a picture of the current situation of the

company or organization, thus allowing for an accurate diagnosis

that allows taking decisions in accordance with the objectives and policies based on that
formulated generating an external and internal analysis of the company such as its
goals, its sector in the industry, its costs, its vision and mission, also
determining its strategic plan and marketing program in which it is involved
the company in order to analyze its strengths, weaknesses, opportunities and
threats within the dairy industry
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COMPANY BACKGROUND

The company was born from the association between Lácteos Surlat S.A., a Chilean company.

consisting of dairy producers from the area and Kaiku Corporation

Alimentaria, an important food company from northern Spain, with a
annual billing of 250 million euros. Lácteos Surlat is made up of 150
shareholders, milk producers from the Ninth and Tenth Regions. Among the
Shareholders include Unical, Union of Dairy Collection Centers company
that brings together 151 small dairy producers and has six centers of
collection and 46 dairies, most of which are community-based.

PRODUCTS OR SERVICES

Surlat Company offers different types of dairy products.

white milks

Cream

Cheese

Butter

Lactose-free products

White milks

Flavored milks

Yogurt

Cheeses

Butter

Probiotics
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BENECOL PRODUCTS:

Benecol is a dietary supplement created by the food company McNeil.

Nutritionals (a division of) as an attempt to design a food capable of
reduce the level of cholesterol in the blood.

Milk

Yogurt

Liquid yogurt

Lactose-free liquid yogurt

SURLAT RECIPES

The company Surlat shows its clients a portal on its webpage.

[Link] where you can find recipes of all kinds that can be
make with the same Surlat products, within these recipes are found in
mostly desserts, frozen desserts, preparations with coffee, milk, etc. They are
available on the website at all times with all the details of the
preparation, the time of preparation and precise quantities depending on the
that each one wants.

Surlat keeps its social media, Instagram, Facebook, Twitter updated with
information that is relevant to customers, such as offers, promotions,
new products, contests, etc.
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VISION AND MISSION ANALYSIS

At Surlat, they emphasize the guaranteed quality of their products and maintain the
commitment regarding its raw materials, milk from the best livestock farms of the
south of the country (ninth and tenth region).

Next, we can see a mission and vision as well as the philosophy of Surlat:

Mission: "We are a company from southern Chile dedicated to the production, sale and
distribution of dairy products and their guaranteed quality derivatives. Our
the objective is based on the satisfaction of our clients and consumers, also in
the well-being and motivation of our workers and the trust of the shareholders
with a permanent commitment to innovation.

Vision: "To be the leading company in dairy products and their derivatives in Chile and in the
foreign highlighting for the quality and innovation in its products, having
always a social, economic, and environmental commitment.

If we take into account the foundations established for the creation of the mission and vision

Of the organizations, those of this company are well-structured and defined. The
vision meets the established basic parameters and responds clearly to the
question What do we want to become?, the only thing that could perhaps be said is that the
if the vision could be expressed in a single sentence, make it more concise and precise.

Likewise, the mission established by Surlat S.A clearly describes what it is

business and what it fundamentally aims at (customer satisfaction, motivation of
workers, trust), defines values and commits to innovation.

In summary, we believe that both the mission and the vision of Surlat are
correctly established and clearly represent where it points to
company.
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ENVIRONMENT ANALYSIS

The micro and macro environment of the company is analyzed.

Internal Environment:

Analysis of the main functions of the company:

Production: Surlat is mainly dedicated to the production of dairy products.

constant search for innovation and customer satisfaction, its raw material is
raw milk coming from the cooperative union of small producers of
the ninth and tenth region supported by UNICAL (Union of Collection Centers)
Milkmen

Marketing: Surlat is a company in a growth stage, its

Marketing is 90% to the national retail. Surlat exports powdered milk.
as a main product to countries like Mexico, Russia, Cuba, and Venezuela.

Finance: The company's finances are located in Santiago as the headquarters.

with departments of Treasury, Credit and Collections, Billing, and Accounting.

Human Resources: Around 140 people work at the Pitrufquén plant.

who are engaged in the production and sale of milk-derived products.
The company stands out nationally for its constant concern for
Regarding staff training. 80% of Surlat employees are
young people under 30 years old.

Analysis of the value chain

Primary activities:

Raw material: obtained from local producers which is stored and transported
toward the processing plants (Pitrufquén–Loncoche), by means of trucks
isothermal protecting not exceeding 12 hours in this process. With this
ensuring to maintain the properties and their perfect condition.
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Preparation: Receiving the milk in optimal conditions before proceeding to the process of
pasteurization thus reducing the microorganisms that threaten health
from the consumers, the milk is then sanitized and standardized for
to comply with the composition of the products that will ultimately be marketed.
It is worth noting that both machinery, pipes, and the plant's devices are
They undergo a washing procedure to ensure food safety.
Surlat has a quality department that conducts constant sampling.

Support Activities:

Research: Surlat conducts constant research funded by projects

applications for public funds and with the support of interested private parties in the

productive growth in southern Chile, in the implementation of new

technologies and structural improvements that promote economic growth and the
creation of new sustainable job opportunities over time.

External Environment:

Analysis of the external variables of the company such as:

Economic: In terms of economics, the company has faced crises regarding its
cooperative but has managed to adapt to the needs of its consumers
maintaining the position of your brand in the industry. An example is the creation of
its lactose-free line due to the demand for these products. Surlat is concerned about a
complete productive chain from the feeding of its producer animals of
raw material for the production of its products in order to optimize costs
production.

Policies: For surlat it is important to maintain a quality standard, in fact it was

one of the first companies in Chile with ISO 9001 certification. The concern
from raw materials to the end of processes regarding hygiene and
security.

Social: Surlat has positioned itself in the market with its quality products and
a brand remembered by its consumers, conveying the love from southern Chile
to the rest of the country, caring for and promoting environmental standards. With
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active participation in plastic recycling campaigns with containers

located in different areas.

Technological: In the technological field, surlat partnered with kaibu where this
the company contributes with technological development. This is to be able to process efficiently and

efficiently the raw materials and thus generate a first quality product.

Demographics: Strategically, Surlat is located in the IX region for the

procurement of raw materials, agricultural production area which reduces costs
of production.

Cultural: Chile is a country that has a high consumption embedded in its culture.
dairy products, even the government promotes and supports with campaigns like "I drink"

milk" This is an opportunity as we will always have people willing to

acquire milk and its derivatives, without delving into their main and potential
clients are the children.

Environmental: In its processes, Surlat uses a large amount of energy, the disposal
Waste and gas management is a major concern regarding the cleaning of their equipment and spills.

accidental. Due to the excessive livestock load of some properties, it generates

wear of soils, air, and water. The Surlat yogurt packaging takes around
10 years of degradation.

In addition to Porter's five competitive forces.

Intensity of rivalry among competitors: In Chile, there are several brands with the
which Surlat competes with, for which the intensity is high. Companies such as;
Parmalat, Soprole, Nestlé, among others, since their products are similar and
substitutes for which the only thing Surlat can incur is brand loyalty.

Threat of new entrants: There is not a significant threat in this.

scope since there are only small producers and they do not pose a great danger
since they are dedicated to small artisanal production and the dairy industry in
Chile only works in cooperation.
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Threat of substitutes: The threat is constant and varies according to tastes.

of the consumer to which Surlat seeks to adapt day by day.

Buyers' bargaining power: The buyer has the option to choose between
a wide range of products and different brands that meet your tastes, furthermore
In price, the difference is very small, which is why Surlat has no differentiation.
price.

Negotiation power of suppliers: Surlat has producer partners for

what is the concern about the price of raw materials and maximization of
utilities have a common interest and commitment.

SWOT MATRIX

SWOT analysis is a tool used by companies, organizations and

people, which allows them to create a picture of the situation they are in
evaluation that allows for a precise diagnosis of the company
organization, to then make a decision in line with the objectives of the
company or organization. This SWOT analysis aims to delve into the issues of the
Surlat S.A. company

Fortresses

As a company, it is innovating in new production lines, such as products without

lactose and probiotics, this means that there is a constant concern
the company is innovating according to the needs of consumers and
the needs of the new times. Also, its elaboration and production is in
the south of Chile.

Weaknesses

Working with the raw material (milk) and its derivatives is considered a
disadvantage, since due to conservation and its derivatives. A great
A disadvantage nowadays is the complex problems of dairy farmers in the area that have
due to closing its factories. Another clear weakness that the company presents
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SURLAT is the use of plastic packaging in some of its products, such as

yogurt has a considerable environmental impact.

Opportunities

A national initiative is to promote healthy eating and living, and Surlat S.A., with
his products in favor of health meet the country's objectives which is a
healthy life.

Threats

Dairy production is not a new sector in Chile, therefore, it has great

national and international competition. The Chilean state as it stands in favor of the
healthy, it has also implemented stricter laws that help with
healthy, one of them is the new labeling law.

Within the analysis, we have found internal and external factors that
they transform into new strategies aimed at improving the
positioning of the industry, in order to increase sales and greater market share in
the market.

DEVELOPMENT OF THE MARKETING PROGRAM

Product

The products offered by the company Surlat encompass a wide range of

dairy products that include white milk, cream, cheese, butter, and yogurt.

Product classification:
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The classification of all of them falls under perishable products given that
since its date of preparation there is a limited time of more than a month
but less than a year until maturity.

Product features:
The goods offered by the company Surlat are consumer goods, regarding
convenience goods are heterogeneous common-use goods in the purchase between them but
homogeneous with the products offered by other brands.

Differentiation

The differentiation of Surlat products focuses on the characteristics of each

line, existing the traditional line, the lactose-free one, kids line, lactose-free protein and
Surlat benecol.
Another differentiation strategy lies in the quality of the product, Surlat
characterized by packaging at origin, the milk is obtained from the best producers of
the area and is packaged directly at the plant in Pitrufquén, (Region of the
Araucanía). In addition, Surlat products are of high quality without requiring processes.
extra because it is not reconstituted milk, it is 100% natural milk to which
no additional ingredients are added.

Product-Brand Relationship
Product hierarchy
Surlat offers a line of products that includes a wide range of derivatives.
of milk, also offers specialized product lines for different
customer segments, such as the lactose-free line for lactose-intolerant people
lactose, the kids line which mainly consists of snacks and products in
smaller format or the benecol line for people with problems
cardiovascular.
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Product mix

Amplitude of Product Mix

Line Lactose-free Kids Benecol

Traditional

Length White milks White milks Milks Milk

of the Skimmed Skimmed flavored skimmed
line of Semi-skimmed s Yogurt
product Semi-skimmed Whole Probiotic Yogurt
Entera Flavored milk liquid
Cream Coconut caramel Liquid yogurt
Gouda cheese Cafe lactose-free
Cheese Gouda Chocolate
Light Yogurt varieties
Butter Gouda cheese
Butter Creamy cheese
to notice Butter
Yogurt Yogurt Protein
varieties
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Packaging
The packaging at Surlat is characterized in each product line, mainly in
the color that identifies it as part of the Surlat line and brand, the case of the
lactose-free products are appreciated below

In all lines and products, the company's logo stands out in size and color, and
in its different lines, having characteristic colors helps to convey the
information.
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The shape of the products in general aids in the transportation and storage of
In addition, there are facilities for consumption such as the easy-open feature on the boxes.

of milk.

Price

Considering the whole milk product, a price will be established based on the phases.
given.

Phase 1: Price Objective

It is established that the objective of the price of whole milk of the Surlat brand will be the

market share, since this is already an established company with

similar characteristics to the competition in relation to the product, only that not
it has a significant share in the milk market as it does
Colún or Soprole.

Phase 2: Demand Calculation

Given the characteristics of the product, it is established that the demand is elastic.
The use of the product over time is frequent, as a perishable item for use.
common, this feature does not allow the accumulation of this product over time
prolonged and the daily use of the product causes it to rotate quickly. The
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milk is a product with substitutes within its own derivatives so it

reaffirms the elasticity of demand for this product.

Phase 3: Costs
Within the costs involved in the production, sale, and distribution of milk
fixed costs are evidenced that include the refrigeration of the products for the
storage as well as rental of warehouses and offices and salaries, as costs
variables appreciate the payment to suppliers, the packaging and transfer of the
products. Other costs that the company incurs include investments in
machinery.

Phase 4: Competition
Regarding the competition, the main competing companies would be Colún,
Soprole and Nestlé, where Colún resembles more the corporate image of the
company that emphasizes the importance of the natural origin of milk.
In this sense, a price similarity between the companies is observed.
competitors, since they offer a homogeneous product.

Phase 5: Strategy
Perceived value
$ 670 price per liter of milk similar to the competition
$100 premium for packaging process in the southern region of Chile
$100 first for milk quality
$ 870 price that covers the value of surlat
-$80 discount
790 final price

Phase 6: Price Selection

The criteria that most influence the selection of prices is the intervention of
third parties, given the nature of the company Surlat, despite being positioned in
the market can still cover a greater position in this and due to the similarity
of the product with the other competitor brands and to the cost system of the
the selected prices for each product will be similar to the price of
market equilibrium.
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Square

The distribution coverage is represented by the distribution pattern.

intensive where there is a relatively large number of distributors
within the areas or regions of the country, which have large quantities of
product to cover a wide market share. This selection is due to the fact that
dairy products are classified as everyday purchase items.

The communication strategy with intermediaries is a pressure strategy.

Encouraging intermediaries to reference the brand, maintain a
high stock level and provide an adequate sales space.

The strategy used for the increase of promotional efforts is the

local advertising materials for use, this is evident in advertisements found
inside commercial premises of different sizes where the company stands out
Surlat.

The type of sale for these products is mainly wholesale, where it is sold
in order for these products to be resold or given to organizations.
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Promotion

When talking about promotion, the first step will be to identify the target audience.
Surlat industry, what are the distributors, the large supermarket chains or
local shops where end consumers will be able to find the
products, given that the nature of our audience is the distributors
reaffirms the push strategy.

Within the nature of the product, it is considered that the unit value is low and the
the degree of customization is standardized, which guides us that the
the selected promotion method would be advertising. At this point, it is evident
a shortcoming in the company Surlat due to the low efforts in advertising
brand. The company established in 2001 is in a growth stage due to
that persuasive advertising should be used, however, the advertising that has
found in encompasses enough population.

The methods for the promotion budget are not clear in this research.
given that compared to competing companies the advertising found
it is minimal, this budget is estimated to have been set based on objectives.

In this case, an example of advertising used by Surlat is calendars in the

distributors of their products, which is considered should be improved given
that the survey conducted showed that there is a low level of knowledge
from the Surlat industry even in the area where its plants are located
main.

The goal we estimate should take precedence when carrying out advertising is
change perceptions about the importance of brand attributes,
given that a quality product from the area is offered.

There is a lack of information about the promotional methods of this company since
this is one of the shortcomings observed within Surlat.

example marketing program development

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Marketing strategic plan

Objectives:

reduce the environmental impact caused by plastic packaging used in

the products.

increase sales by raising consumer awareness regarding

use of biodegradable materials in packaging.

Strategic alternatives:

One of the weaknesses we present in our SWOT analysis is the impact.

what the plastic packaging used in products like the environment generates
yogurt. Plastic bags take approximately 160 years to degrade,
while the plastic bottles and mentioned containers have a time of
degradation that ranges from 500 to 1000 years.

Due to what was mentioned in the previous paragraph, we have decided to implement as an improvement

a biodegradable container for products packaged in plastic.

Due to the fact that nowadays a considerable number of the world's population is
becoming aware of the environment, is that we believe that the
sales of SURLAT products will gradually increase with the implementation
of a biodegradable container, which will help raise awareness among
consumers
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Marketing plan development

Product: more than just a new product, we want to implement a new packaging.
Spain, the Technological Institute of Plastics, developed a special packaging for
dairy products, resistant to heat treatments and at the same time biodegradable.

According to the research, the polymer used to produce the packaging allows for
these should be discarded along with organic waste, and converted into fertilizers in
composting conditions (source: [Link] 07/18/2016)

Price: according to what is presented on the page [Link], the cost per product
finished, using the necessary materials to make the containers, should not
increase the final cost of the packaged product by more than 10%. Therefore, although the
The price would increase, it would not be a very significant variation for consumers.

Communication: nowadays, people are becoming aware of the impact

what plastics generate for the environment, and measures are being taken to
reduce its use, one of these measures is the elimination of plastic bags
supermarkets. This has been well received by consumers.

But this should not end there.

To showcase our new packaging, we will use the channels that

they are commonly used (social networks, television, radio, etc.) Emphasizing
a biodegradable and environmentally friendly product.

Distribution: currently, SURLAT products are for sale in any

supermarket, and also in smaller stores, so it is not necessary
implement a new distribution system.
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DIAGNOSIS OF THE COMPANY.

The study conducted on the company indicates that today it is still in a

potential growth, even though it has ceased operations, but the industrial area
the sale of products will continue, which does not mean that it cannot have improvements of
some type.

Considering what has been done and the background information that has been gathered,
We can now make the diagnosis of this company.

Surlat is a company that wants to strengthen its brand every day but has some
deficiencies mainly because it does not have a good marketing plan what this
leads to the fact that it has not yet positioned its brand, so its market share could
increase if this will improve.

One of Surlat's biggest concerns is delivering a product of

Quality that is achieved through the acquisition of raw materials provides a great advantage.
the ones providing it are also shareholders, so they all make up a team and
They work hand in hand. This is thanks to the research they actively develop.
But, on the other hand, it has only 2 commercial offices, which makes for a greater
difficulty for large supermarket chains to supply themselves and this leads to a
higher cost.

Solution alternatives:

Brand positioning strategies (marketing)

Strategy to open one or two more branches

Strategy to cover more market

Chosen alternative solution

In this specific case, we chose a brand positioning strategy.

which is focused on marketing, since there is no investment being made in this department.
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and making good decisions, since it is not generating many benefits and
it presents many deficiencies. For example, the main page of surlat
([Link]), the information found there is scarce, on the other hand
It is currently producing advertising campaigns on television solely focused
to its kids line, setting aside its other products; so the brand by itself
it will never be in the minds of consumers if it is not promoted
properly. Even knowing that Surlat is relatively a new brand since
it has only been in the market for 17 years, if it has quality products, it just lacks a
aggressive positioning that stands out from its competitors.

Implementation of the Solution

The main goal for Surlat is to capture the attention of consumers through
efficient advertising campaigns that reflect and identify the brand's purpose
its product range and the multiple benefits that come from consuming them.

As a group, we propose the following suggestions:

Considering that the government is promoting advertising campaigns

promoting healthy living, Surlat should take advantage of this opportunity and create a
strategic alliance where your brand is favored, as your products are
related to healthy eating. This will be achieved through sponsorships in the
different events or activities related to these campaigns, social media.
This would be very beneficial as it would achieve brand recognition and the
It would show its corporate social responsibility.