24857238 Marketing Project k Nnn

7/31/2019 24857238 Marketing Project k Nnn

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INTRODUCTION

The year 1964; Pakistan a young independent nation forging ahead towards a dream; self

sufficiency in food production. Malnutrition remained a major problem and one out of four

children died before attaining the age of five. 80% of the ailing children were affected with

diseases caused by protein, vitamins and minerals deficiency. Poultry production, the

quickest and least expensive way of filling the protein gap was planned to overcome

malnutrition. Backyard poultry farming has to graduate to a more professional level.

January 1964, a young man, Khalil Sattar, still a collage student, had a vision to foresee a

need to establish a poultry farm. his interest led him to start a broiler farm of 1, 000

chicks .little had he known this flock was to become the foundation stone of K& N'S . This

was the simple, inspired and nationalistic beginning of K&N's with a single minded

objective of providing a better nutrition for health and happiness of the nation.

COMPANYS BACKGROUND

K&Ns is the founding pillar and beacon for Pakistan poultry industry- started in 1964 with

a single minded objective of providing better nutrition for health and happiness of thenation. Building on years of poultry expertise, and a commitment to food-safety, K&Ns

integrated all poultry production activities under one umbrella to ensure quality and food-

safety by managing and controlling all stages of production.

COMPANYS MISSION STATEMENT

Our mission based on four basic values of Absolute Integrity, Enthusiastic Diligence,Continuous Improvement and High Quality are at the core of all operations which provide

an impelling urge for attaining perfection.


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PRODUCT ORIENTED MISSION

K&Ns has a strict plan to follow in terms of target orientation. Each of product is based on

the rule that it should be healthy to eat and according to the taste of consumers. In this

regard no compromise is solicited on hygiene and quality. Making K&Ns the leading

producer and a company with huge demand for its products is the aim of K&Ns.

CURRENT MARKET SITUATION

From very past the tradition of having heavy breakfasts along with spices and flavors

including chicken have been the delight of Pakistani Cuisine. Majority of the local

consumers prefers chicken to meat and desi food over fast food in Pakistan . Paratthas are a

most famous item in the desi cuisine of the country with a trend based on centuries.

Our product would be a perfect one enjoying highly profitable sales and customer

relationships as it would be providing the very desi look and an absolute desi taste desired

by the local consumers. In this regard, we can say that Jhatpat would not face any difficulty

in order to convince the local consumers hence the probability for increasing sales margin

is expected.

SWOT ANALYSIS OF K&Ns

In order to gather useful information about its position in the market and commercial

viability, K&Ns use SWOT analysis to determine various factors which may improvise

the overall standard, quality and brand equity while growing in competition to other

production units in Pakistan.

In its quality assurance cell, the company maintains a check and balance on methods of

sales distribution, new business ideas and strategic options, such as entering a new market

or launching a new product in its product line, changing its suppliers and outsourcing itsservices. A few points necessary to be included in this section are given in coming sections.


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STRENGTHS

Along with the developed brand identity and trust reposed by customers,

K&Ns has established its name in international market as well.

The company is now a producer of its own unique type which produces

various categories of products segmented for different chunks of population while

remaining in lowest costs.

This is driven by a factor of self production plants which are self sufficient to

produce ingredients and helping materials by themselves for K&Ns finished

products.

Another factor is the strong supply chain through its distribution channels.

These factors are the basic strengths of our product inherited from the company

setup.

The unique taste and first time introduction in the markets have a vast scope in

the product line of its nature.

WEAKNESS

Though no company is a perfect in business activity performances yet pricing

strategies have been the pinching element in companys market positioning.

Though the products are cost effective as we take quality under consideration

yet most of the products are targeted for the upper class of society. We can use

appropriate and differentiated pricing strategy to avoid this weakness of

OPPERTUNITIES

As K&Ns majorly operates in Pakistan, a country where distribution of products

is limited to specific areas within an urban sector hence grooming their product ofunder such circumstances has always been an opportunity for K&Ns.

By improving their Distribution channels as well as pricing strategies for , can

give a robust increase in brand equity and can promote their product demand overall in

the market.


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The comparison of the prices of chicken parathas produced at tandoors cannot

be done if hygiene is kept in view.

THREATS

Threats are always there in poultry oriented firms so K&Ns keeps an eye on new

competitors in dealing with different products related to chicken and poultry.

At present the only threat is the diseases spread amongst broiler chickens

which can be prevented by establishing medic control at breeding premises of

company.

In case of the introduction of firms producing frozen chicken paratha might

be a threat which could be considered well before the start of production.

STRATEGIC PLANNING

There are four steps which basically form the plan for our company which could derive

results in form of long term company survival. These for steps are

Planning Marketing Strategies

Designing the business portfolio

Setting company goals & objectives

Defining the company mission

STEP 1 STEP 2 STEP 3 STEP 4

In these steps we aim to provide with the basics for functioning throughout the companies

production process. The long-term missions are to be achieved through setting short-term

objectives. The products are characterized and allotted weights according to demand and


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Four basic objectives of absolute integrity, enthusiastic diligence, continuous improvement

and high quality maintenance are at the core of all operations which provide an impelling

urge for attaining perfection. Driven by its basic objectives in pursuit of perfection, K&N's

is committed to have superior product and unmatched service through devoted people and

consistent development.

BUSINESS PORTFOLIO

The K&Ns business includes the chicken products as follows:

Whole chicken:

Whole chicken roaster {skin-on, suitable for roasting}

Whole chicken w/o giblets {skin-less, without neck and giblets}

Designer cuts:

Karahi cut {skin-less whole chicken cut into 15-17 pcs. Suitable for

making Chicken karahi and other curries}

Boti cut { combination of skinless drumsticks and breast pcs}

Boneless meat:

Breast fillet {skinless boneless breast fillets}

Boneless handi {breast fillets cut into small cubes}

Qeema extra lean {extra lean mixed chicken meat}


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Easy cook {ready to cook}:

Nuggets

Chappli kabab

Burger patties

Chicken tempura

Kofta

Combo wings

Croquettes

Haray bharay nuggets

Hot tenders

Fun nuggets

Shami kabab

Tender pops

Fully cooked:

Seekh kabab

Kafta kabab

Chicken tikka chunks

Mughali tika


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PRODUCT LIFE CYCLE

Product development:

K&Ns has developed a new pro product that is jhatpat chicken paratha keeping in view,

its objective of providing better health and nutrition for the nation. The paratha is a much

known eatable item in Pakistan that would now be available in a very new ready to cook,

chicken form. The company is ready to put its cost for the product.

Introduction:

K&Ns being launched for the very first time in Pakistan will firstly be introduced in the

federal capital { Islamabad } and provincial capitals { Lahore , Karachi , Peshawar and

Quetta } in all the outlets.

Growth:

While keeping in view the response of the customers, the would be further introduced

nationwide and its presence in every outlet would be assured so that there is no complaint

regarding the availability of the very new product. Certain advertisements have been

prepared in order to catch the customers eye.

Maturity:

With the passage of time when our product reaches its maximum growth point and the

sales slowdown so we are going to apply different strategies like reducing prices,

introducing new ingredients or items in the same etc.

The following graph shows various combinations of products in different phases of

different products.

BCG MATRIX


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High Market share Low

RELATIVE MARKET SHARE

This famous approach introduced by the Boston Consulting Group helps us position the

different products of our business into four different strategic business units that let us

know the position, strength, and market hold and consumer response to our products.

MARKETING STRATEGY

K&Ns is using the marketing concept as its current marketing technique stating that the

organization should be aware of the needs and wants of the target markets and should be

delivering the desired satisfaction better then the competitors do in order to achieve the

organizational goals.

We have a plan of using the marketing strategies that have been discussed below:

Product concept:

This concept says that consumer will favor products that offer the most quality

performance and features and that the organization should therefore devote its energy to

making continuous product improvements.

K&Ns from the very beginning has focused on providing better nutrition for the health and

happiness of the nation and we will be keeping the words as they were before. Quality is

our very first priority that will make us build strong and profitable customer relationships.

We will be managing and controlling all stages of production of the jhatpat chicken

paratha as done for the rest of K&Ns products in order to ensure 100% safe and healthy

production of our product.


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Selling concept:

This concept states that consumers will not buy enough of the firms products unless it

undertakes a large scale selling and promoting effort.

We are launching an unsought consumer product as none of our competitors or the rest has

launched a product similar to ours.

To make our valuable consumers aware of our newly launched product we have decided to

use this concept. We will create awareness among our customers on a large scale utilizing

all he best promotional means available. Television and radio ads are at the first priority,

billboards at the best locations or different areas, newspaper ads and door to door

awareness programs are at the second. Other than these promotional strategies we will

ensure the availability of our product in access at all K&Ns outlets and the departmental

stores and bakeries.

MARKETING PROCESS

It is the process of analyzing marketing opportunities, selecting target markets, developing

the marketing mix and managing the marketing effort. The marketing process comprises of

three stages given as follows:

Market segmentation

Target marketing

Positioning

MARKET SEGMENTATION


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Market Segmentation is the process that companies use to divide large heterogeneous

markets into small markets based on distinct needs, characteristics or behaviors who might

require separate products or marketing mix. From the four very basis of segmentation i.e.

Geography, demography, psychographic and behavioral we divided the market into two of

them given as follows:

Demographic:

Dividing the market into groups based on demographic variables such as age, gender,

family size, incomes, family lifecycles, religions, race, occupation, generation etc.We

while dividing the market segments demographically considered the following

variables as the basis:

Gender (male or female)

Family size (in order to get an idea regarding pieces per pack)

Occupation (as our main focus is those related to tough jobs or studies or

dont have much time for cooking or most probably the break fasts)

Psychographic:

Dividing the market segments into groups based on social class, lifestyle or personality

characteristics.

While dividing the market segments psycho-graphically we used the following:

Doctors

Engineers

Business class

Govt officials


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Bankers

Students etc

Both the psychographic and demographic market segments can be accessed.

Serving these segments can result highly profitable

Can be attracted through easily designing of effective programs to serve them.

MARKET TARGETTING

Every organization selects a set of buyers based on same needs and characteristics in order

to serve them. This is called market targeting. Two important steps regarding market

targeting are:

Evaluating market segments

The factors, basing on which we evaluated the target market segments are discussed below

briefly:

Segment size and growth:

In this section we made an analyzed check of the probability of the current segment sales

and that expected for our product and whether we are able to generate the desired

profitability.

Segment structural attractiveness:


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This is an important section where we had a sharp search over the market to find out if

there was any substitute product, the buying power of suppliers and buyers, and if there

was any competitor of ours with the chances of market diversion but we found none.

Companys objective and resources:

In this section we implemented a check over the relation between the companys objective

and the customers and we found an absolute positive relation between both. We also

analyzed the resources of the company with which company is highly able to serve its

customers.

Selecting target market segments

The target market comprises of a set of buyers having common needs and sharing common

characteristics selected by a company to serve.

Undifferentiated (mass) Marketing: it is a market coverage strategy in which a firm

decides to ignore market segment differences and go after the whole market with

one offer.

Differentiated (segmented) Marketing: it is a market coverage strategy in which a

firm decides to target several market segments and designs separate offers for each.

Concentrated (niche) marketing: it is a market coverage in which a firm goes after a

large share of one or a few segments or niches.

Micro Marketing: the practice of tailoring products and marketing programs to the

needs and wants of the specific individuals and local customer groups. It is of two

types

Local Marketing: tailoring brands and promotions to the needs and wants of local

customer groups-cities neighborhoods and even specific stores.

Individual marketing: tailoring products and marketing programs to the needs and

preferences of individual customers also known as one-to-one marketing


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CHOOSING A TARGET MARKET STRATEGY

We analyzed the data gathered through the survey reports and decided to go after the

concentrated marketing. We have decided hostilities students, job oriented men and womenand teenagers. These are the segments that can be called the time savers and our product

will make them have a refreshing breakfast without time consumption.

PRODUCT POSITIONING

It is the evaluation of a companys products position that what place it occupies in the

market and how customers differentiate it from other products.

Choosing positioning strategyTo position the product different companies use different positioning strategies.

Competitive Advantages

Product Differentiation:

We offer a pack of four. Each separately wrapped in butter paper, combined packed in

sealed plastic bags that are safe for health, and then finally packed in the box.

Service Differentiation:

Our product will be accessible and will be available at every outlet of K&Ns.

Channel differentiation:

In Pakistan K&Ns is operating in more than 35 cities. There is very diversity in its

distribution. We take the example of Islamabad city .In Islamabad there are many stores as

well as retailers in every sector, and only in I-8 there is one K&Ns store and 17 retailers

shops.

People differentiation:


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Technology is highly involved in the production so we will hire trained staff, those who

knows how to operate the machines. We also hire qualified staff in order to guarantee

healthy relationship between customers and retailers.

Image differentiation:

Since our product comes under K&Ns brand name hence a good image will be casted over

the consumers. Also K&Ns is a symbol of quality; hence will automatically be recognized

as a quality product.

Product Chain

K&NS are enjoying there own product chain. They have there own breading and poultry

forms, from where they get there raw material for their product.

Choosing the right competitive advantage

Important: we deliver highly valued benefits to our target customers in our

products.

Distinctive: we have no strong competitor and enjoy distinctiveness in the market.

Superior: we are providing pure hygienic food in at comparable prices.

Communicable: the consumers can feel the difference in our quality, taste, hygiene

and prices that are communicable.

Preemptive: competitor needs a lot and lot of hard work to match our standard else

it is not possible.

Affordable: buyer can afford to pay for the difference.

Profitable: the difference is profitable both for the company and the customers.

Selecting an overall positioning strategy

Our overall positioning strategy will be focused on More for Less winning value

proposition i.e. will offer more quality at less price range and we will focus on the needs

and wants of target customers in order to give high customer value and satisfaction.


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POSITIONING STATEMENT

To target the teenagers, working women, hostilities and bachelors, we offer , a ready to eathot and spicy paratha, with high quality, affordability and accessibility.

Marketing Information System:

People, equipment and procedures to gather, sort analyze evaluate and distribute needed,

timely and accurate information to the marketing decision makers.

PRICING, PROMOTION AND DISTRIBUTION

STRATEGIES

PRICING STRATEGIES

As we know that there are two types of new product pricing strategies

Market skimming pricing

Market penetration pricing

For our product we have selected the market penetration pricing strategy. We apply this

strategy to keep our product prices lower so that by doing this we attract a large numbers of

buyers and also to gain large market shares.

The reason for not using market skimming strategy is that as our product is an eatable

product and there no sense of keeping high prices for an eatable product, because as we

know that skimming strategies are for luxury products.

PRICE ADJUSTMENT STRATEGIESAfter penetrating into the market, we will adopt adjustment strategies in order to increase

our sales and attract more customers. Basically these adjustment strategies are according to

the taste, culture and the changing situation of the market. Following are the price

adjustment strategies.

Discount and Allowance pricing.


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Segmented pricing.

Psychological pricing.

Promotional pricing.

Geographical pricing.

International pricing.

DISCOUNT AND ALLOWANCE PRICING

We will apply this strategy by giving quantity discount to our customers.

Quantity Discount:

We will give quantity discount by offering buy one get one free offers.

We will also give discount to those customers who will buy in bulk or in large quantity.

Segmented pricing:

We launched our product in almost all the parts of the country with almost the same prices.

We segmented our product price in the following ways.

Time pricing strategy:

In time pricing we will lower our prices according to different seasons. We will reduce

prices in Ramadan season, as its demand is more in that season.

Promotional pricing:

This strategy involves temporary lowering of the prices of the product below the cost to

increase the short run sales. We apply this strategy when any one of our competitor lower

its product price in order to grab market shares. To compete with them we also lower our

product price so that we can retain our market shares.

Geographic pricing:

In Geographic pricing we adopt freight absorption strategy.

Freight absorption strategy:


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We do not add freight charges to our product price in order to keep our product price lower,

as our focus is to capture more customers.

International pricing:

As K&Ns is not yet internationally recognized so we do not set international prices for .

K&Ns is only serving nation wide so we set prices of our product nationally.

PRICE CHANGES:

Some time companies have to initiate price change after developing pricing strategies

because of different reasons. Price change could be a price cut or price increase.

Initiating a Price Cut:

We already set a low price for our product but we cut price of our product if our sales will

not increase accordingly, in that situation we will cut the price in order to increase sales

and to capture market shares.

Initiating a Price increase:

Once our product achieved a position in a market and we set a good image in theconsumers mind and we have a large number of potential buyers then we might increase

our product price. But our aim is to give good quality product in an affordable price.

We can also initiate our product price when our product demand increases and we can not

supply according to the demand but INSHALLAH this situation will never come because

K&Ns has its own poultry and breeding farms.

Buyers Reaction to Price Changes:

Changing in price has a great effect on the consumers mind. They think that there should

be some problem with the product so the company is decreasing its product price or the

customers may interpret it as the company is closing its business and they will not offer this

product in future. On the other hand price increase also affects the buyers in a way that they

think that this product is unobtainable unless they buy it soon. They also think that the

company is greedy and they are charging more prices for their product.


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Competitors Reaction to Price Changes:

We should be aggressive while changing our product price and we have to change our

product price according to the competitors product price. So we should also keep our

competitors into consideration before lowering or increasing our product prices.

Responding to Price Change:

If our competitors Changes the prices it affects our sales. So we should analyze the change

and react to it accordingly. Like if they low their price it will decrease our sales so we

should adopt strategies to increase it by lowering our price, giving discounts or improving

quality of our product.

Promotion Strategies:

Promotion is the activity in which the company has a chance to interact with its customers.

To Promote we use different promotional tools. These tools include advertisements, sale

promotions, public relations, personal selling and direct marketing.

Advertisements:

We will use informative advertising because it is mostly used when introducing a newproduct. The objective of it is to build primary demand. We will use the persuasive

advertising when we have a competition in the market.

Sales Promotions:

In sales promotions we will use different discount strategies, giving short term incentives in

order to increase our sales. We also introduce sponsorships and discount coupons.

Personal Selling:

We will also promote our product through personal selling. Personal selling is more

effective then any other promotion strategy. Through personal communication it is easy to

persuade someone to buy your product, because in personal selling there is a direct contact

with the buyers.

Public Relations:


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To increase our sales we will also ties good public relations. We develop our public

relation by doing the work of social responsibility, like wishing happy Eid or wishing any

other special event to our customers.

Through Public relations it also creates a good word of mouth for our product which is the

most efficient way of promoting a product.

Direct Marketing:

In direct marketing we will target our customers through internet, telephone, print media

and electronic media (television and radio).

Print Media:

We will promote our product through print media by advertising our product in

newspapers and in different magazines. We will adopt this type of advertising when we

want to introduce some new discount packages or sales offers. Other then advertising in

newspapers and in magazines we will also advertise our product on bill boards and

banners.

Electronic Media:

To promote our product through electronic media we will advertise our product on

different television channels and on radio stations. To make our product information more

convenient and easy we will provide our website and 24 hours toll free numbers, through

which our customers can contact us and also give feedback about the product.

Other then the print and electronic media the cheapest way to promote our product is

through short messaging service. We have a contract with different cellular companies

that they will send our promotional messages to their special numbers.

Promotion Budget:

To allocate budget for our promotion strategies we will use objective and task method.

According to this method first we define our promotion objectives, that why are we

promoting our product? After that we determine different tasks to accomplish those

objectives and at the end we estimate the cost utilize in performing these tasks.

DISTRIBUTION OF OUR PRODUCT


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After the development of our product our product should be distributed into the market for

the satisfaction and attraction of our consumers. Our product plays a vital role in the

availability of our services to attract the customers.

How to Distribute our Product to Retailers

Sell Directly to Retailers

Sell through distributors, which sell a broad range of products to manyretailers

Sell through captive distributors, which sell a broad range of products to

one chain of retailers.

Sell through distributors, which sell to your targeted customers.

Distribution Channel of our Product

The distribution channel of our product is indirect marketing channel because this channel

contains one or more intermediary levels.

Pricing of our Product

The price of our product is at low of cost and easily affordable as compared to our

competitors, so that our product will remain more attractive in the eyes of people and this

may help to increase our customers.

Cost of Development of our Product

The price of our product is based on cost of all ingredient used because of its low price our

product is very popular among customers.

Product

Our product offers consumptions, attention to satisfy desire or need in the market

Level of Product

Core Benefit:providing the good taste.

Actual Product: our product includes all ingredients in packaging

according to the core benefit.

Augmented Product: our product may provide some benefits which are

related to our product.


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Channel Behavior Conflict

The conflict of channel behavior of our product is vertical conflict. Because in this conflict;

conflict lies between different levels of the same product, is even more common

Marketing System

Our product may consist of vertical marketing system (VMS) because it is such type of

distribution channel in which producers, wholesalers, retailers act as

.

unified system. So that one channel member owns the others, has contracts with them, or

has so much power that they all cooperate.

Type of VMS

Our product lies in the administered VMS in the vertical marketing system because this

type of VMS coordinates successive stages of production and distribution, not through

common ownership or contractual ties, but through the size and power of the parties.

INTEGRATED MARKET COMMUNICATION

Communication Process:

Sender: K&Ns

Encoder: The advertising agency and the Creative department

Message: that now ready t cook proper meal is available for the hostilities and the working

women

Channel of message: through broachers, TV advertisements, newspaper

Decoding: this is done by the consumers, customers

Receiver: the targeted customers are the receivers.


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Response: if our product satisfies the needs and wants of our customer then in response

they will approach towards our product

Feedback: as a feedback the customer can go to any outlet of K&Ns .they can even mail

there feedback to the customer relation manager through our website

DEVELOPING EFFECTIVE COMMUNICATION

1. Identifying the target Audience:

K&Ns has targeted mainly the hostilities and the working women who do not find time to

cook food sometimes so they can avail the facilities of a wide range of products provided

by K&Ns and they can remain free of tension when they dont have time and they have to

serve a complete diet to their children that is safe and healthy as well

2. Determining the communication Objectives:

We go through the six buyer-readiness stages

K&Ns objective is to give knowledge about their new product theas the consumers are

already aware of the brand K&Ns giving them knowledge that how their needs and out

products qualities are connected so that this is a part of theirliking how our product is

differentiating in the market by providing 100% safe chicken items why to prefer K&Ns

and then comes the conviction that K&Ns is the fastest growing chicken product dealers

in Pakistan so they have come up with a new tasty and healthy product and then

motivating them to the extent ofpurchasing the product.

3. Designing a message:

Using the AIDA formula we have designed our message that converts the desires of the

people for the product into the actions of purchasing it


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Message Content

We will be using the rational appeal for producing the desire to purchase the . Their is the

personal interest of our targeted customers in purchasing ready to cook food that has both

safety and health

4. Message Structure:

One sided Argument:

We will use one sided argument by mentioning the strength of the as it is ready in minutes

and tastes like homemade and when you have nothing on your mind to cook you can go for

K&Ns near your door steps.

Order of Argument:

We are going to mention the most important part first the give the extra information in the

middle and then end with attracting the customers that our product is what you need

5. Choosing the media:

Non-personal communication channels:

We will be selecting non-personal means of promotion and communication .we will use

media like the newspapers, cooking magazines, radio, and billboards. This will exclude the

risks that can be caused by personal selling i.e. the image of the company can be affected if

a bad word of mouth is spread.

6. Selecting the message source:

We will use any female celebrity that will demonstrate that in her busy routine she gives

time to her family as well and when she has to serve food within no time she prefers

K&Ns because she has trust on the quality of products of K&Ns


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7. Collecting Feedback:

We will use personal selling strategies form collecting the feedback about the promotion of

the product like Word of mouth and by conducting surveys .

Pull Strategy:

We are using the pull promotion strategy by reading the minds of the customers and

providing them with their needs so that the customer itself goes for buying our product and

at least trying it for once, afterwards the taste and quality of K&Ns will make the buyer

purchase the product again and again.

CONTROL AND SUGGESTIONS

In todays fast moving the major issues related to society is the TIME. This is a

factor which creates hurdles in decision making of consumers to adapt a product

according to their needs. Another factor which contributes towards social setup for

behaving in more specific purchases is the health of general public.

According to a survey conducted by our group more people were found to be

cautious about contents and taste of products they consume. They prefer easy to use

and quick to serve products in their meals.

Our product is mainly focusing on the working women and the hostilities. The

hostilities require something that is ready to serve in minutes that is less time

consuming but still full of taste and nutritious as they miss the taste of home made

food and the working women cannot get time to prepare meals like chicken parathathat is very time consuming if completely prepared at home .so our product provides

them the solution t their problems

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24857238 Marketing Project k Nnn

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