BCG Matrix of Meat ONE

The BCG matrix or also called BCG model. The BCG model is a well-known
portfolio management tool used in product life cycle theory. BCG matrix is
often used to prioritize which products within company product mix get more
funding and attention. The BCG matrix model is a portfolio planning model
developed by Bruce Henderson of the Boston Consulting Group in the early
1970's.In the BCG matrix company classifies the products into four
categories on the basis of their market share and market growth relative to
the largest competitor. Each product has its product life cycle, and each
stage in product's life-cycle represents a different profile of risk and return. In
general, a company should maintain a balanced portfolio of products.
High

Anticipated
Growth
Rate

Marinated (Malai Boti,etc)

Low

Chicken(Nehari Cut,etc)
High

Market Share

Deli(Imported)

Soup Bones(Animal Waste)

Low

Each product has its life cycle and each stage in product life cycle represents
different portfolio of risk and return. Company should have balanced
portfolio. In the above BCG matrix of Meat One its shown that their star is
marinated that could be malai boti green tikka or even shashlik sticks and
their cash cow is chicken people might go for different cuts, Deli is their
question mark and their dog is soup bone, for dog food.

BCG Matrix of Meat One

BCG Stars:
Marinated products such as Green Tikka, Malai Boti, are the star of
Meat One which has high market share as well as high market growth.
It is the leader of the business and generates high margins .If its sales
growth becomes low so it will eventually turn into a cash cow. So
company needs to maintain its share and growth rate.

BCG Cash Cows:

Chicken is the cash cow of Meat One. It has low growth but high market
share. It is a great source of earning money. It is a product for which
most people demand for. As it has low growth, so company does not
make any new investments in it but the cash which is generated with
the help of this cash cow is invested in stars and question marks.

BCG Question Marks:

Deli is the question mark for Meat One. It is a new product and they
import it so and not many people can afford to buy this type of meat
the demand is also uncertain. Such kinds of products need to increase
their market share quickly otherwise they can become dogs. The best
way to handle them is to either invest heavily in them to gain market
share or to sell them.

BCG Dogs:
Soup Bones is a dog for Meat one. It is a flop product which needs to
be sold off quickly as it has a low market growth as well as low market
share. However Meat One can invest in this line but since it is categorized as waste for
animals it isnt seen as a product to invest heavily in.

Planning
Planning is a process of defining goals, developing strategies and outlining tasks to reach its
overall objective effectively and efficiently. The basic idea of planning for an organization is to
know what it wants to achieve and for that it must answer the following questions:
Who are we?
Where are we and how did we get here?
Where do we want do go?
What steps should be taken to reach there?
Once these questions are answered, an organization can easily frame a strategy which can help
reach its goal by using required resources and time. Well written plans and proper
implementation of those plans, plays an important role in the success of an organization.
Planning also helps the employees, as they know what is expected out of them and hence they
work accordingly. It also creates a healthy attitude towards the work environment, which in turn
benefits the organization.

TYPES OF PLAN:
An organizational plan should be realistic and achievable says Mr. Osman Saeed (Assistant
Brand Manager) while talking about Meat One long, medium and short term plans. Long term
plans are for a period of Ten years. Short term plans are based on a yearly basis. The planning
process is functional E.g. finance and accounts, marketing, administrative, operations, etc.

MEAT ONES PLANNING PROCESS:

Each week, there is a management committee meeting that is chaired by the CEO and attended
by all department heads (finance, operations, HR and marketing). The meeting which is typically
called the Mancomm involves discussion on the objectives set during the previous week's
meeting and whether those objectives were fulfilled during the course of the week. New plans
and chalked out for the next seven days, problems are discussed and new ideas are brain stormed.
Each department head is given a list of tasks for the week. The Planning process goes from
bottom to top, as Lower level managers brainstorm ideas and discuss them with middle level
managers who in turn discuss it with their top level counter parts, but in the end top managers
make the final decision.

MEAT ONES LONG TERM PLANS:

Meat Ones long term goal or plan is to acquire a large market share in Punjab and they also
intend to expand their operations in Punjab by setting up a factory there to cut unnecessary cost
of transportation .If they intend to send their meat to Punjab then they will have to freeze it
instead of providing fresh meat which they specialize in at the moment. Meat One seeks
inspiration from an American based company known as Tyson Foods and in the long term plans
to expand and become as big an organization as Tyson Foods is.

MEAT ONES SHORT TERM PLANS

At Meat One they have an annual assessment of plans and currently they plan to achieve a goal
of setting up at least 10 meat one shops in Karachi and 1 shop in Hyderabad (all on rent).
Mr Osman also talked about the new products that Meat One will be launching this year; these
include deer, fish and turkey. The products will be advertised by Circuit Advertisement
Company. Other than that, Meat One has sold its franchise to Alif Investment and plans to open a
store in UAE within two to three months to cater the Middle Eastern market.

CURRENT STRATEGY:
Meat Ones immediate plan is to open 4 more outlets at 9 th Commercial Street Phase IV, Sehr
Commercial, in December and Bahadurabad and North Nazimabad in January and February.
In addition to this, they are trying to extend their product range, especially their Ready to Cook
or marinated range by introducing new offerings. Margins on raw beef, mutton and chicken is
considerably less than value added items such as marinated and deli products. Moreover, Meat

One intends to carry out multiple below the line (BTL) activities at busy shopping malls to create
brand awareness and implement a customer loyalty system.

Strategic & Operational Planning:

At Meat One, there is a tactical understanding of long term goals which is to open additional
outlets in the city and grab at least 5 to 10% meat market share in Karachi. On a shorter term, the
weekly (mancomm) is conducted to discuss the progress towards these goals. The short term
planning is more frequent since the external environment changes frequently and the plans have
to be amended/altered accordingly. For example, a store site that was initially selected for its
location may have to be changed due to deteriorating law and order situation in that area.

Sales Planning:
Meat one sells fresh meat which according to Mr. Osman is the differentiating factor between
Meat One and K&Ns, fresh Meat means that the animal is slaughtered the very same day and at
most one day old, it is not frozen or preserved like Ks & Ns which can be kept in storage for 6
months or even more, this presents a problem of keeping stock. Managers have to know the
market and accurately forecast sales daily, another problem is that customers prefer to buy a
certain part of mutton or beef meat like for example the leg has more demand than the undercut,
sales managers have to ensure that the entire carcass is sold instead of just the legs or the
favorable parts, this lead them to develop Meat One to formulate a strategy which encourages
customers to buy Meat more in demand combined with lesser favorable parts such as undercut,
as a package for example a leg piece combined with undercut this ensures that the entire carcass
is sold. Furthermore to ensure that even waste meats like extra fat, tongue Meat, Ear Meat, etc in
other words Meat that customers would never eat are sold in the form of Pet food, this ensures
efficiency in sales and enables Meat One to cut down costs by reducing waste.

MARKETING STRAGEGY
Brand awareness is primarily generated via word of mouth and ATL campaigns when they open
new outlets. In addition to this, they have carried out a BTL (below the line) activity at Park
Towers that garnered much attention. During their 6 day event just prior to Eid, they set up a stall
in the atrium of Park Towers and invited mall visitors to sample their marinated range.
They plan to conduct more such events when they venture in the North of Karachi. They do not
spend a lot of money on marketing in print advertisement, radio or television. They feel that their
small foot print at the moment does not justify an exorbitant marketing spend.

BRAND LOYALTY & CUSTOMER RELATIONS

Meat One has maintained a very strong brand loyalty with their existing customers. Their
flagship covers a limited geographic area; their regular customers reside in the areas of Defense
housing society.
Meat One implements a strong sales promotion and marketing strategy. They acquaint their
customers with the benefits of buying meat from their retail shops. Customers should be made
aware of the potential hazards of shopping for meat at traditional butcheries.
Promotional campaigns are outsourced to our Creative Agency.
BTL activities such as conducting food shows at Local Malls (Park Towers and Forum).
Print advertisement.
Local Store Marketing initiatives in which they train their store staff and riders to
distribute leaflets and generate awareness about their products to households that is in
close proximity to their retail shops.
Suggestive selling within their retail outlets.
A direct email program that focuses on sending brochures of our product offerings.
Advertising consistent with their main value proposition. Every advert focuses on their
core benefits of convenience, quality and hygiene.
However they are planning to setup a customer loyalty program but it is yet to materialize.
Their distribution channel can be both their weakness and their strength. Their weakness because
their business model is such that they like to operate Meat One outlets and sells their products
in a specialty meat shop as opposed to distributing it to retailers. It is quite expensive to maintain
this model and the growth process is very slow. They dont franchise their brand to 3 rd parties as
well.
Site selection, shop design, implementing architectural plans, training new staff etc requires
considerable effort and it takes between 3 to 6 months to open a new outlet. This is in sharp
contrast to the whole sale distribution model where the company simply mass produces a product
and then distributes bulk quantities to retailers.
The upside to their distribution strategy is that they can maintain tighter control over the many
aspects of our brand, such as product quality and customer service.

COMPETITORS OF MEAT-ONE
Competitor of Meat One can be categorized as:
1. Primary Traditional Butcher Shops. The traditional neighborhood butcher has
usually held the lions share of the meat market. They offer the lowest prices out of all the
competitors and have traditionally maintained a strong bond with their patrons. The meat
itself is un-hygienically transported, stored, prepared and sold. Additionally, they have no
control over the slaughtering process as they are simply whole sale buyers of beef
carcasses that is later slaughtered for consumption.
2. Secondary Retail Super and Hyper stores. Aghas, Ebco, My Super Store and
warehouse retailers such as Metro and Makro that have their own in-store butcheries.
These retailers attract SEC A segment and are an expensive option. They prepare and
store meat in a proper and hygienic manner. They have an added advantage in that they
offer groceries and household products under the same roof. However the source and
mode of transport of the meat is the same as that of the traditional butcher shop.
3. Tertiary K&N and Menu. This band of competitor has an established an extensive
network of distribution and retail outlets. They specialize in ready to cook and ready to
eat products that have been processed using certified processes. They sell frozen meat
products where as Meat One sells fresh and chilled meat.
Meat one has a food business, which is a commodity by its very nature. They cannot charge
an exorbitant premium price for the meat they sell. Their price points is slightly more
compared to the neighborhood butcher and at par with meat sold at hyper-marts. The price
factors are expenses in terms of marketing and operations. They cannot compete on price
since the cost of doing business is considerably more. That cost has to be factored into the
selling price.
They strive to achieve maximum customer satisfaction and offer top notch customer service.
They regularly carry out surveys to gauge customer response towards their products and
services in order to identify areas of improvement.
Their store manager keeps a close vigil at the store floor, identifying staff performance and
listening to customers.
They like to emphasize that they sell trimmed meat, which means that the price customers
pay for a kilogram of meat at their store does not contain wastage such as excess fat. In other
words, customers get what they pay for, that is export quality meat with zero water content or
wastage.