Market Research: OYE HOYE

MARKET RESEARCH REPORT

COURSE: PRINCIPLE OF MARKETING
INSTRUCTOR: MS. FARAH NAZ
PRODUCT: OYE HOYE CHIPS

GROUP MEMBERS:
 FATIMA ASIM
 ASAD BAWANY
 NATALIA KHAN
 MUSFIRAH TABANI
Market Research: OYE HOYE
CONTENTS

Executive summary ………………………………………………………………….. 3

Introduction...……………………………………………………………………………. 4

Methods….…………………………………………………………………………………. 5

1. Marketing Manager Interview

2. Market Research
3. Individual market survey

Results….…………………………………………………………………………………. 15

Interpretation of Results………………….………………………………………. 16

Conclusion…..……………………….………………………………………………….. 17

Acknowledgement………..…………………………………………………………. 18
Market Research: OYE HOYE
EXECUTIVE SUMMARY
The aim of this report was to investigate the current market condition of the
product: OyeHoye and to observe/understand how the 4 P’s of marketing
work at a consumer touch point i.e. retail outlet. Group/Individual visits to
various kiryana stores were conducted. This report concludes that the
product OyeHoye Potato Chips isn’t thriving well in the market due to various
reasons and out of the 4 marketing P’s, placing (channel of distribution,
exclusive vs . intensive etc) is the one that has made it difficult for this
particular product to compete in the ever-growing FMCG industry. This
report also points out various mistakes made by the supply chain in various
locations of Karachi and how this has adversely affected the demand for the
product.
Market Research: OYE HOYE

INTRODUCTION
Leveraging 6 decades of experience in the FMCG Industry, United Snacks, a
progressive and dynamic Pakistani snacks manufacturing company, proudly
launched a new product, OyeHoye Potato Chips in January 2016. The new snack
has six delicious and diverse flavors; Salt, Barbeque, Tomato, Salt & Pepper,
Masala and Cheese and has been specifically manufactured to appeal to the
diverse palate and need for convenience of Pakistan’s growing youth. The new
product line is now available nationwide. Their tagline is:

Life meinoye, chips meinsirf

OYE HOYE
Market Research: OYE HOYE

METHODS
MARKETING MANAGER INTERVIEW
We went and spoke to the marketing
manager of OYE HOYE, Mr. UmairAqeel to
gain market insights.

Below is his follow up:

How does your supply chain work?

It is a simple mechanism that after the product has been developed from the
plant there are designated distributors who distribute the stock to the respective
order bookers, who had booked the orders from different A, B and C class stores.
Order bookers usually place the orders a day or two before the scheduled date.
The distributors deliver the order the next day. The marketing team pays a visit
to different stores to ensure that the placement has been done accordingly as
their requirement.

Placement?

OyeHoye pays for their placement at different stores; there is an agreement for
shelves, which can be in the form of percentage discount or a fixed cost that
company bears. In majority of the cases a whole vertical shelve is rented.

Competitive pricing:

A class stores get more discounts than a B or C class store because A class stores
are the ones who does bulk buying. Consumer pricing is same for all the 3 classes
but mostly A class stores sells at a discounted rate than B and C class stores as
Market Research: OYE HOYE
they have a greater margin. But it does not affect OYE HOYE’s brand image as A
class stores sells all the brands and their products at a discounted rates.

Competitor:

The category is called ‘salted snacks’ in which there are different segments such
as Potato chips, Extruded Snacks, Nimco and Nuts. But OYE HOYE is currently
only operating in Potato chips. But Lays which is OYE HOYE’s biggest competitor,
and the current market leader, is operating in different segments but the major
segment of salted snacks is called extruded snacks where Slanty, Kurkure and
other competitors are working in.

Marketing campaign:

Latest campaign is all about partnership with coke and can be seen by the logo of
Fanta and promotion of all these new flavors. There’s a TV advertisement going
on and there’s also a radio spot too.

Brand launch:

At the time of brand launch OYE HOYE chose FAWAD KHAN for the brand
endorsement. It created a great hype that OYE HOYE is in the market. But it’s not
only about creating the image but one of the major thing to do is to make the
product available in the market at the time of launch, if the product is not
available in the market at the time of launch it creates a negative impact for the
brand which is what happened with KNOCKOUT.

Brand Packaging:

At the time of launch there was a research done in the form of focus group and
quantitative research that asked questions such as: what type of packaging
would appeal to the consumer, what packaging will catch the eye of the
customer at the stores and what type of flavors would appeal to the audience.
Market Research: OYE HOYE
OYE HOYE introduced matte packaging in Pakistan for chips because of which
other brands joined in so basically OYE HOYE set this trend of Matte finish
packaging in Pakistan.

Question and Answers:

Q) Do you consider biscuits (of the similar pricing) as your competitor?

(Opportunity cost)

Ans) Snacking is a different thing while biscuit is a different occasion. Snacking is

done while watching movies where as biscuits are consumed usually at Hi-TEA.
So outside the category it is not considered as the competitor.

Q) How does OYE HOYE compete with existing contracts of their competitors for
example IBA is in contract with PEPSI and PEPSI does not allow OYE HOYE to be
sold at IBA?

Ans) Usually all these contracts expire within a year or two so OYE HOYE brand
has to wait for the agreement/contract time to end, meanwhile the working has
been done on the backhand and at the time of renewal OYE HOYE also pitches in
with their agreement and tries to give as much benefit as they can so they can
get the contract.
Market Research: OYE HOYE

Market Research
The information used in the making of this report was done mainly through
primary sources such as interviews and informal discussions with the
workers, brand ambassadors and store managers.

We visited some IMT’s and LT’s including Al Jadeed, Imtiaz, Naheed

supermarket and Chaseup to gain store insights. B class stores like TM MART,
Madni Mart, Waleed, Aone, Time Medico and Al Jazeer also stock OYE HOYE
chips. OYE HOYE is a developing brand so not all the kiryana stores stocked
OYE HOYE.

Imtiaz Super Market (Bahadurabad)

Market Research: OYE HOYE
Imtiaz had divided OYE HOYE chips in two sections. One was OYE HOYE’s
own shelf whereas the other was along with other chips. According to the
store manager the shelf is provided by the company and Imtiaz charges rent
for the shelf. OYE HOYE also has a brand ambassador at Imtiaz who guides
the customers about their product. Lays is their most running brand,
followed by Kolson and then OYE HOYE. They sell at market rates. The store
does bulk purchasing usually truck wise agreement. Upon enquiry they
informed us that they had to cal for supplies after every two days because the
sales ratio for OYE HOYE was pretty high.

Chase Up

At ChaseUp OYE HOYE chips were placed on the eye level as evident in the
picture. Chaseup also sells at the same market rate. The chips were available
in all sizes. They have a special 5 piece pack for Rs39 giving a discount of
Rs.21. OYE HOYE is their running product. Orders are placed usually twice a
week. Sales are higher in the evening. 1 carton of OYE HOYE consists of 24
pieces in the smaller box and 48 in the bigger box.
Market Research: OYE HOYE

Al JadeedSuparmarket (Gulshan)
Al Jadeed Supermarket is an A class store included in local trade. It has about
18000 products with a separate stimulus for each. At Al-Jadeed OYE HOYE
were the first chips introduced with matte finish packaging. This idea was
then followed by Knock out. OYE HOYE faces constant competition from Lays
Market Research: OYE HOYE
and Wavy. However at Al Jadeed OYE HOYE chips were being offered less than
the market price. Al Jadeed aims towards growth rather than profit
maximization. The brand was placed exactly next to wavy and lays.

Naheed Super Market (Bahadurbad)

Naheed is counted as one of the largest grocery stores in Karachi. However
the store does not stock OYE HOYE chips. Lays has the highest sale
percentage among all the present brands at Naheed.

Apart from interviewing the store-owners, their responses have

been recorded too. Pictures of the visits are attached and audio
recordings can be retrieved upon request.
Market Research: OYE HOYE
Market Research: OYE HOYE
CUSTOMER MARKET SURVEY
We made people try Lays and OyeHoye without telling them which brand
they were eating.
Market Research: OYE HOYE
Market Research: OYE HOYE

Results and Analysis of Individual Customer Survey

We conducted an individual research in IBA with a sample of 90 students 49
of whom were male and 39 female. We placed two containers in front of
them, one filled with OYE HOYE and the other Lays. The students were
unaware of which brand was in which container. They were then asked to try
a chip from each container and then to tell us their preference. Much to our
surprise, despite them not even knowing which brand was in which
container, 60% of them preferred Lays, 20 % didn’t find there to be a major
difference between the two chips and 20% preferred OYE HOYE.

The basically portrays that even though both are chips which are thought to
be perfect substitutes, customers do find there to be a difference in the taste
and it is the taste of Lays that most of them prefer. This basically shows that
customer purchasing behavior isn’t just determined by the extensive
campaigning that the brands do but also by their taste. Another reason it may
be so is because a lot of customers have simply developed a taste for Lays and
nothing else suffices.

Results and Analysis of Market Survey

We went to general stores and A class markets like Al Jadeed and conducted
research there. We asked customers there which brand of chips they
generally preferred. A lot of the customers there were mothers whose kids
preferred Lays or Slanty (Kolson). They did also buy OYE HOYE occasionally.

We also asked customers whether were kind enough to oblige us for a couple
of minutes. We took them to the racks with the chips on them and asked them
which brand was most eye catching. 86% of them said OYE HOYE was the
most attention grabbing because its font on the packet was most eye-
Market Research: OYE HOYE
catching. However, this didn’t necessarily mean they would buy OYE HOYE.
70% of them would still end up buying Lays or Wavy or slanty. This could be
because Lays especially has already established brand loyalty with its
customers.
Market Research: OYE HOYE

OYE HOYE vs New Entrys

OYE HOYE was the first brand of chips to introduce matt packaging. Later,
Knock Out and Optp also followed in its footsteps and did matt packaging. OYE
HOYE hasn’t faced any threat or any fall in sales from these two entries. Infact,
MrAqeel said this new competition encouraged them to find better and more
innovative ways to market their product and grow as a brand. A reason why
OYE HOYE hasn’t faced and fall in sales could be because both these products
are relatively new and haven’t really be launched yet (Knock Out especially.
However, an advertisement campaign for it is currently in the works).

Effect of Advertisement Campaigns on OYE HOYE Sales.

There have been two major television advertisement campaigns for OYE HOYE.
The first one was the one with Fawad Khan right at the launch of OYE HOYE. Due
to this, its specific effect on sales cannot really be judged.

The second television advertisement campaign took place on September 11th

which is barely two weeks old. It featured Zaid Ali T, a famous canadian YouTube
blogger with Pakistani heritage. OYE HOYE paired with Fanta in it. Due to the
advertisement campaign being so recent, its effect on sales cannot really be
judged as of yet.
Market Research: OYE HOYE

Acknowledgement:
In fulfilling this report, we were guided by few people who deserve our
greatest gratitude. First of all, our most gratitude is for Mr. UmairAqeel (Trade
Marketing Manager, United Snacks) who gave us his precious time and helped
us in obtaining some market insights of the brand.

We would like to appreciate all those individuals who directly and indirectly
helped us with this report including all the shopkeepers, students, store
managers who took out time and answered all our questions.

Lastly, we would like to thank our TA, Tuba, who helped and guided us
throughout the process.