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Documenti di Professioni
Documenti di Cultura
Marketing Management
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DEDICATION This report is dedicated to all the team members for their hard work, cooperation; enthusiasm and making this project a very nice experience.
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PREFACE
Our project was to choose a specific industry in Pakistan (Rawalpindi/Islamabad) and compare all the main companies lying in that field. We had to find marketing strategies, target markets, 4 Ps of the companies, competition, etc and all the related stuff of the companies in that specific industry. We chose food industry and related products supplying companies serving in Rawalpindi/ Islamabad. In food industry we had three big companies to work on which are Euro Foods (Peshawar), Farmers Foods (Peshawar) and Kings Foods (Islamabad). We appreciate the cooperation of our teacher and our student assistants who helped us doing work in this project. We appreciate the efforts of all the team members who provided time, support, and inspiration needed to prepare this report. We used some tools for our marketing research to know about the market situation. Following were the methods used:
We designed three different kinds of questionnaire to get the information about the companies. First questionnaire was for the customers (end user consumers), second was for the retailers and third for the hotels, restaurants and fast foods. After gathering the data, we analyzed the data and did all the comparison on the industry situation of related companies. We would like to thank the supportive staff of hotels; retailer and individuals for helping us conduct the research. Without their corporation, it would have been difficult to complete this report.
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Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customers point of view. . . . Business success is not determined by the producer but by the customer. P E T E R D R U C K E R
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G M
roup Ahmed Kaleem Amir Owais Ali Bilal Shah Saman Ansar
embers (BB023006)
Presented to
Sir Arif Vaseer
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INTRODUCTION INDUSTRY OVERVIEW: MARKET SEGMENTS PSYCHOGRAPHIC: INDUSTRY LIFE CYCLE OVERVIEW OF THREE PARTICIPANTS EURO CLASSICS:
8 9 9 10 10 11 11
SAUSAGES AND LOAVES......................................................................................................12 COMPANY PROFILE:...........................................................................................................12 LOCATION OF THE COMPANY:..............................................................................................12 ADVANTAGES OF THE LOCATION:.........................................................................................12 TARGET MARKET:.............................................................................................................13 EURO PRODUCTS:..............................................................................................................13 BENEFITS OF THE EURO PRODUCTS:..............................................................................14 EURO QUALITY POLICY:....................................................................................................15
FARMERS FOODS:
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______________________________________________________________________ MARKETING OBJECTIVES AND GOALS............................................................17 IDENTIFY COMPETITORS:.....................................................................................................17 DISTRIBUTION:...................................................................................................................18 SUPPLY CHAIN:..................................................................................................................18 OPPORTUNITY AND ISSUE ANALYSIS:..............................................................18 MARKETING STRATEGY:.......................................................................................19
KINGS SAUSAGES
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LOCATION:........................................................................................................................20 PRODUCTS:........................................................................................................................21 INTERNAL FACTORS:...........................................................................................................23 MARKETING STRATEGY:.......................................................................................23 INTERNAL ANALYSIS..............................................................................................24 COMPETATIVE ADVANTAGE................................................................................26 STRUCTURE................................................................................................................26 DIVERSIFIED PRODUCTS.......................................................................................27 CUSTOMER LOYALTY.............................................................................................27 EXPERIENCED STAFF..............................................................................................27 COMPLETE CUSTOMER SATISFACTION UNDER ONE ROOF.....................27 SYMBOL OF QUALITY AND RELIABILITY........................................................27 100% INVENTORY LEVEL.......................................................................................28 ALWAYS UPDATED...................................................................................................28 PLACEMENT IN BCG MATRIX..............................................................................28
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MARKET SHARE:...............................................................................................................29 PRICING:...........................................................................................................................30 AVAILABILITY....................................................................................................................30 PROMOTION:......................................................................................................................31 VARIETY:..........................................................................................................................31 QUALITY CERTIFICATION:..................................................................................................32 AGE GROUP:.....................................................................................................................33 CUSTOMER RELATIONSHIP:.................................................................................................33 DISTRIBUTION NETWORK:...................................................................................................33 QUALITY ISSUES (COMPLAINTS):.........................................................................................34
CONCLUSION:
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INTRODUCTION
Marketing, the process by which a product or service originates and is then priced, promoted, and distributed to consumers. In large corporations the principal marketing functions precede the manufacture of a product. They involve market research and product development, design, and testing. business plan Businesses are decision-making units. Making right decisions should allow a to achieve its objectives. To help making marketing decisions a business must effectively.
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______________________________________________________________________ Marketing planning is the process by which future marketing activities are systematically planned. A businesss marketing plan is influenced by the strategic plans of the business and the overall corporate objectives. A marketing plan is influenced by internal and external factors, which affect a business. For our research project we chose food industry and we had three main companies serving in the industry. We will be giving a brief introduction of each company, its product, strategies, etc and then there will be a comparison of all the companies. It is a fast food product and is for the people who want some snack. It has originated from Middle East, where camel meat is used. It has different ingredients in it such as, Halal beef meat or Halal chicken meat, portable water, ice, fat, salt and European prices which adds up to its taste and makes this product worth while. It is a food product of a general nature but its availability in a quick succession adds up to its attractiveness. It is also notable that due to its packaging, it is a takeaway product.
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Demographics:
Age: 10-30 Disposable Income: 15000-16000 Location: all the big hotels and retail shops. Gender: Male and Female. Average Household: 5 persons per house Average Apartment Occupants: 3 persons per apartment Life Style: Lavish
Psychographic:
Internet access: People have Internet access and literate. Preferences: Expensive and quality products. Marital Status: Single and married. Affiliation: Very interactive.
Demand
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As a whole, the retail industry is in a mature state. Industry growth is expected to follow that of the economy. Retailers are operating in a high volume, low margin environment. High sales volumes are absolutely essential for survival. Since there are limited growth opportunities, retailers are seeking out other means in order to increase profits. In a traditional retail business model, retailers generally purchase nationally recognized items from distributors at wholesale demand a much higher degree of operating efficiency than traditional retaining. Due to the prices, mark up the prices, and sell the items to its customers. With this model, the only basis for competition was starting to become price.
Overview Participants
of
Three
A short and brief introduction about the three participants in the sausages industry.
Euro Classics:
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Company Profile:
Euro industries are a private ltd. company established in 1997. Euro is the only ISO 9001-2000 certified meat-processing company in Pakistan. Executive Director and a highly trained and professional staff manage the company.
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Target Market:
The product's major share is bought by the hotel industry and big fast food giants, for example SARENA, PC, MARRIOT, ITALIAN OVEN, and many others all over in the country and fast food giants such as PIZZERIA, SUBWAY, PAPA SALIS, PIZZA HUT, the company also targets general people for that purpose that they target big retail shops such as SEVEN ELEVEN(PESHAWAR), INSAAF(PESHAWAR), OASIS (ISLAMABAD) and all the big retail shops in popular markets because of the reason that the demand of the product is large in upper class and somewhat to the higher middle class. The company basically targets generation Y that means they are targeting people from 13 to 29. The product is for both genders males and females. The product is not very cheap so the income level of the people who can afford the product are people of high income and good educational level who care about quality over quantity, who care about hygiene over unprotected meat. Basically people who come under the target market are the elite of the country or people who are more modern than local people.
Euro Products:
Frankfurter sausages: Mildly spiced sausages, an all time favorite. Frankfurter cocktail: Mini sausages available in all flavors, a nice finger snack. No FAT frankfurter: Specially prepared frank furter for diet lovers. Hunter sausages: This spicier beef sausage caters for spicy pakistani taste. Chicken sausages: A very tasty low calorie chicken sausages, high in taste and
low in cholesterol. Ideal for dieters.
Chicken cheese sausages: Highly nutritious sausages with an amazing taste. No Fat chicken sausages: Specially prepared for diet lovers.
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Baked meat loaf: Mildly flavored slice cut from a block of meat. Best for
sandwiches at any time of the day.
No Fat Meat Loaf: Fats are completely removed for diet lovers. Mottadalla pie: Slices of meat with a touch of black pepper. Chicken pie: With bits of chewable meat in it. Another low calorie choice for dieters. Smoked veal Meat: Fresh veal meat cooked in smoke, reducing the fat contents
and cholesterol level.
Smoked chicken cholesterol & Fat free: Tasty boneless chicken breast
cooked in smoke. Ideal for dieters.
Beef Salami: Tasty slices of beef used for tea time snacks.
Ingredients: Halal beef meat or Halal chicken meat, portable water, ice, fat, salt
and European spices.
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______________________________________________________________________ Its called as quick meat and its very quick-to-quick and very easy.
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Farmers Foods:
Products:
Frankfurter Sausages
Chicken Sausages Hunter Sausages
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BUSINESS MISSION
The main business mission of the Farmers Foods is earning profit by satisfying the customers. They have successfully conveyed the message to the market and by analyzing their current standing in the market we can predict that there business mission is quite feasible and achievable.
GOALS
Identify competitors:
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______________________________________________________________________ As we earlier mentioned that there are only three big companies in this food industry. So if we look from the Euro classics point of view we have two other direct competitors. Kings Sausages Euro Classics
This is only the introduction part of the companies so we will discuss in detail about the strengths and weaknesses of the competitors in comparison part.
Distribution:
Farmers Foods has its own distribution network which can serve you anywhere in Rawalpindi and Islamabad. They have such a fast, active and reliable network. Customers are given the choice that they can order products to their distribution channel and they can take the products by their selves.
Supply chain:
Supply chain is not only related to the supply of the product but its the whole chain of all the activities related to the product. It include companys procurement, inventory, transport system and distribution network. Euro has an efficient supply chain, which helps it to reduce the cost of products.
Threats:
Some imported brands of sausages (main threat) Increasing share of at some places. Though its very slow but it is increasing.
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______________________________________________________________________ The opportunities according to them are: The local market The other cities. Consumers are showing increased interest in the purchase of their products.
Strengths / Weaknesses Analysis: The product manager needs to identify product strengths and weaknesses. The main strengths are: They are the old customers in this field and they have a value in customers mind. Farmers have excellent brand awareness and a high, quality image. Dealers who sell the Farmers line are knowledgeable and well trained in selling Farmers have an excellent service network,
The main weaknesses of Farmers are: They do not have an efficient distribution network. Their product is good but they lack marketing at some places.
Marketing Objectives: The financial objectives must be converted into marketing objectives. Farmers marketing objectives for this year are: To increase total sales revenue by 13.5% To increase consumer awareness by using catalogues, broche ours, flyers and internet To increase the number of dealers. For instance, they have acquired dealers in Quetta recently. To set affordable prices according to the market affordability range.
MARKETING STRATEGY:
Target Market: Price strategy is going to be applied here and no particular gender is
going to be targeted.
Positioning: High quality frame was used to give a final elegant look. Imported and
local but quality materials are applied to make the product more tasty and hygienic.
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______________________________________________________________________ Distribution Outlets: One to one communication. Direct distribution was focused on.
Service: Quick service. Product delivered as early as possible when ordered. Advertising: Banners, charts, brochures, web site and email, etc.
Kings Sausages
Location:
Manufacturing Plant of KINGS SAUSAGES is located near Tarnol. Their distribution channel and main office is also located there at the same place. They supply their sausages in big cities of the country. In Rawalpindi and Islamabad, they have captured the main area as compared to their competitors.
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Products:
FRANKFURTER SAUSAGES CHICKEN FRANKS HUNTER SAUSAGES GRILL SAUSAGES JUMBO SAUSAGES BAKED MEAT LOAF (BLOCK) MORTADELA (BLOCK) PAPRIKA (BLOCK) 10 O CLOCK PIE (SLICED) CHICKEN PIE (BLOCK) PEPPERONI SMOKED VEAL SMOKED FISH KING PIE FRANKFURTER SAUSAGES (COCKTAIL) BEEF FRANKS CHICKEN SAUSAGES FISH SAUSAGES BAKED MEAT LOAF (SLICED) MORTADELA (SLICED) PAPRIKA (SLICED) 10 O CLOCK PIE (BLOCK) CHICKEN PIE (SLICED) SMOKED CHICKEN BEAST (BONELESS) SMOKED VEAL BEEF SALAMI COOKED BEEF
______________________________________________________________________ Marketing managers have to carry out many activities. For instance, they have to understand the market, and this understanding flows from analysis. Marketing managers spend weeks analyzing their markets before they undertake the development of marketing plans for influencing those markets. Once a market is understood, marketing programs and events must be designed for influencing the market's customers and consumers, and even the firm's competitors. The marketing events are executed in the markets: advertisements are run; prices are set, sales calls are made, etc. Markets are not static entities and thus must be monitored at all times. After events execute, they need to be evaluated. The planning assumptions upon which the upcoming events are based must be continually tested; they are not longer true then the events may need modification Here in Kings foods, I do the same as I described earlier. I follow my own techniques and take decisions whenever they are needed. You can see we have the best distribution network amongst our competitors. We have captured the main area of our target market. The nature of marketing requires marketing managers and professionals to work together on all aspects of marketing. It is common for the marketing manager to be at the center of a set of activities being worked on by people within the company and outside the company.
Marketing Objectives:
were:
To increase consumer awareness by putting banners and charts To increase the number of customers inside and outside Islamabad and Rawalpindi.
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Internal factors:
The marketing mix People: Finance: Production processes:
External Factors
Political: Economic: Social: Technological:
MARKETING STRATEGY:
The product manager now outlines the broad marketing strategy or game plan that he or she will use to accomplish the plans objectives. According to Kings, marketing strategies are word of mouth. The marketing strategy is often presented in list form. Kings respective marketing strategies are as follow:
Target Market: Price strategy is going to be applied here and no particular gender is
going to be targeted.
Positioning: Emphasis will be placed on quality and on balanced food product. Also
lowest price in Pakistan for sausages.
Product line: Lower prices of sausages, earn more from their best supply chain
management, as they get raw material at cheap prices and they pass on this benefit to their customers.
Price: Price somewhat above competitive brands, however lowering prices in order to
increase sales and to achieve economies of scale but they give a high quality product in this price which competitors are failed to give.
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Service: Quick service. Shop delivery services. Advertising: Not much use of electronic media. Just billboards, flyers, brochures,
catalog.
Sales Promotion: More emphasis on walk-in-customers. Research and Development: A proper department for Research and Development
having international standard testing abilities for previous and new products. Expanding budget of R&D to develop better styling of Kings Line.
Marketing Research: Increase expenditure to improve knowledge of consumerchoice process and to monitor competitive moves and to compete with imported goods. More emphasis on primary data. In developing the strategy, the product manger of Kings will talk with the purchasing and manufacturing people to make sure they are bale to buy enough material and produce enough products to meet the needed sales volume levels. He will also talk to the sales manager to obtain the planned sales force support, and to the financial officer to make sure enough advertising and promotion funds will be available.
INTERNAL ANALYSIS
Weaknesses
The big mistakes that its CEO/Chairman has already done, such as overexpansion, cost cutting etc.
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Their communication with their employees is lacking in some parts of the organization.
Because of the big nature of their business they are not being able to counter the problems like cost.
Strengths
They have the highest market share as compared to their competitors according to our research.
The heart of almost every innovation, from discount fare. Wide and Large channel of distribution and subsidiaries offices
Rapid growth and Ambitious expansion plan. EXPERIENCE: The main strength of Kings is that they had the experience of the market because of their long experience in this field PLACE: Place is the one main strength in which they are tackling their competitors.
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______________________________________________________________________ GOODWILL: Another thing is the name or goodwill that they have created within that time; the customers have complete confidence in them
Another reason why their customers are not distracted because of their change in location was that before bringing that big change they started educating their customers about the change, which they are going to bring in the next few months.
Opportunity
It is a necessity product because people always look for a healthy, hygienic and balanced food. They are the current market leaders with heavy share but they still can capture retail shops at some places. Technology: (1) Minimize costs and/or use them only where they barely substitute for totally measured rupees.
Sausages food industry is a high growth industry and a huge market The opportunity to substitute the traditional less hygienic and unbalanced food products.
Threats
Union Labor Strikes Government Deregulation, Regulation and Re-Regulation Technology. For example: If the industry is not using IT or does not need to use it effectively and intensely, the chance of doing anything new is low. Substitute products, such as Bakers products.
COMPETATIVE ADVANTAGE
Kings has the competitive advantage on the others in the following manners:
STRUCTURE
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______________________________________________________________________ Internal and external trained employees of the company are a standard and challenge for the other businesses. Also each and every segment has his separate place in the their target market area.
DIVERSIFIED PRODUCTS
They have such a diversified products structure that if one person enters in any outlet, he gets total satisfaction. All of the products are in some manner related with each other.
CUSTOMER LOYALTY
Customers are attached with them since long, even before the big change they have made in their business. So, they are very loyal with them also the entrepreneur is very loyal with them.
EXPERIENCED STAFF
The staff is working with them since long so, they all have the understanding with each other and all have a friendly relationship with each other.
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______________________________________________________________________ a product has been sold then it is a very rare chance that a customer comes back with a complain.
ALWAYS UPDATED
It is very necessary for the businesses to remain up to date. In other words we can say that Kings sausages successfully keep their retailers available with the up to date product that are introduce in the market related to their business.
Market Growth
PLA
Low Low Market Share High Company is in star quadrant. The reasons for choosing the company as a star is that the company is focusing on high investment in particular Areas and are now they are moving towards maintaining advantage. They are the countrys emerging leader in the retail industry.
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Market Share:
In question to the product usage amongst 1) Euro Foods 2) Kings Foods 3) Farmers Foods, we got the highest marks for Kings Sausages as they the market leaders with 70% of share. Table shows the share of each company participating in the market
Euro
Hotels (out of 20 forms) Percentage share in hotel industry Customers (out of 20 forms) Percentage share in End user customers Retailers (our of 21 forms) Percentage share Retail market Total (Out of 61 forms) Percentage as Total
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Market share in Sausges industry Euro, 15%
1 2 3
Farmers , 15%
Kings, 70%
So it is clear from the table and from the graph as well that kings sausages has a major share of the market, and other competitors have very less part of the market but this is alarming for Kings Sausages that competitors share is increasing as compared to the previous years.
Pricing:
Customers are satisfied with the prices of the products and most of the customers mentioned the kings brand name for best pricing. 70% customers favored Kings pricing, 15 % for Euro and rest for the Farmers. We asked them that if they increase their prices then would you still like to buy the products and the result was amazing. Almost 100% of the customers agreed to us, they all are ready to pay more to get good and hygienic food. So I think there is more room to grow for these companies, customer is willing to buy and even ready to pay more if they provide good food.
Availability
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______________________________________________________________________ According to the customer, these companies have availability issues. They should make sure about their availability of their products to the customers. We visited some places and asked customers about availability issues, in response Kings have 85 % availability, 10 % goes to farmers and only 5 % to Euro.
Farmers
Kings
Promotion:
Only Farmers and Kings are concentrating on their promotional activities, others are not really concerned about it. We got the highest response for the Kings food in promotional activities but Farmers has satisfying promotional activities. Euro Classics really have to work on it. They are falling very behind in their activities in relation to the promotion as compared to their competitors. This shows lack of use of marketing tools, which affects sales and profits as well.
Variety:
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______________________________________________________________________ In response to the variety, Euro and Kings have satisfying figures. According to the customers they are proving good and hygienic sausages products with great variety but Farmers do not have broad variety. Farmers do not provide their customer with great choices in their products and they really have to work on it. This is alarming for them because more variety always attracts customers. When you provide more variety, you get the attention of the customer.
Quality Certification:
We asked questions about the quality certification of the products like ISO 9003 etc. of course customers are conscious about the quality of the products and resulted figures shows it but surprisingly 4 % answered this question in NO and we were amazed by listening to that. Looking at the YES figures we can say that people want their products to be hygienic and they should fulfill all the criterias of quality.
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Age Group:
In response to the age group, we found out that their target market is teenagers. People who are teenagers have the major chunk in the buyers. Figures show that people with 8 years of age like to eat and above 22 also like to eat but major part is captured by the teenagers.
Customer Relationship:
In response to the customer relationship, Kings has the highest marks. Their distribution staff and suppliers are very cooperative to their customers. They are friendly to the retailer and the hotel people where they supply their products.
Distribution Network:
Kings has the best distribution network in the market. Customer dont get response from Farmers, Euro has satisfactory results. Customers get less response from Euro and Farmer and one big reason for this is because they are located in Peshawar and they dont easily response to the customers. Kings has the advantage of location; they are near to the customers. They provide their products in time and they can call Kings Staff anytime when warranty or some quality issues arises.
Distribution
80% 60% 40% 20% 0% Euro Farmers Kings 31% 9% 60% Series2
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Conclusion:
From all these activities, we can state that kings is the best and at the top in this industry due to some factors which are as follows: Customer relationship Hygienic Products Fast and Reliable Distribution network Broad Variety of products Customer services
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Farmers and Euro are the followers with same market share of 15% each. Retailers and Hotels prefer Farmer as compared to Euro but Euro has approached the end user customers with some advertisement and good promotional activities. From this report one thing is clear that Farmers and Euro has room to grow against Kings because people are ready to pay more money if they improve quality.
Questionnaire
For customers
Q # 1 In your view which product is the best in quality and taste? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 2 Which Company has the best pricing? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 3 which Companys products are available at most places you buy from? ___________________________________________________________________ 35
Q # 4 whos promotion have you seen the most? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 5 Who has more variety in their products? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Questionnaire
For Hotels
Q # 1 Whos product do you use and why? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
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______________________________________________________________________ Q # 3 Would you change the Company if you get a chance and which company would you like to choose? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 4 Do you care about certifications of the company like ISO 9003, etc?
Q # 5 Whos product has the most variety that would help you in your food?
Q # 9 Are you satisfied with the quality and packing of the products?
Questionnaire
For Retailers
Q # 1 Which brand is doing well in the market and why? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
----------------------------------------------------------------------------------------------------------Q # 2 Among these three brands, whose distribution is better and which company supplies the products in time? ___________________________________________________________________ 37
Q # 3 Do you get complaints from the customers for any of these brands and which brand has the most complaints? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 4 Are their any hidden benefits given to you by any company? If yes then chose which one. 1) Euro Foods 2) Kings Foods 3) Farmers Foods
Q # 5 in your view who is doing better promotion of their product and what is that? 1) Euro Foods 2) Kings Foods 3) Farmers Foods
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