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Peanut Pik Report1

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1 EXECUTIVE SUMMARY This report has been compiled as part of our course of Principles of Management. This report provides an analysis,evaluation and marketing plan of Peak Freans Peanut Pik in particular and the biscuit industry in general. The purpose of this report was to thoroughly study the Peanut Pik brand, its relationship with its owner company EBM, and all the factors affecting it, and opportunities and threats for the product in the near future. SWOT Analysis has also covered. After a thorough analysis and recommendations we have learned how to reach strategic conclusions based on competitive analysis of different organization in the industry. The strengths and weaknesses of the company have been analyzed. The strategies followed by Peak Freans Peanut Pik and its generic position have also been highlighted Peanut Pik is Peek Frean‟s classic brand with a limited but relatively permanent customer base that has a taste for nuts basically. It has a very limited marketing budget because of EBM‟s preference to profitable brands like Sooper, Rio and Gluco. However, the nut biscuit segment carries huge potential and can be further explored Because of budget restraints, Peanut Pik has to make moves in a limited capacity. Therefore a very efficient planning is required. This report basically covers the planning that EBM aimed for Peanut Pik.
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Page 1: Peanut Pik Report1

1

EXECUTIVE SUMMARY

This report has been compiled as part of our course of Principles of Management. This

report provides an analysis,evaluation and marketing plan of Peak Freans Peanut Pik in

particular and the biscuit industry in general.

The purpose of this report was to thoroughly study the Peanut Pik brand, its relationship

with its owner company EBM, and all the factors affecting it, and opportunities and

threats for the product in the near future. SWOT Analysis has also covered.

After a thorough analysis and recommendations we have learned how to reach strategic

conclusions based on competitive analysis of different organization in the industry. The

strengths and weaknesses of the company have been analyzed. The strategies followed by

Peak Freans Peanut Pik and its generic position have also been highlighted

Peanut Pik is Peek Frean‟s classic brand with a limited but relatively permanent customer

base that has a taste for nuts basically. It has a very limited marketing budget because of

EBM‟s preference to profitable brands like Sooper, Rio and Gluco. However, the nut

biscuit segment carries huge potential and can be further explored

Because of budget restraints, Peanut Pik has to make moves in a limited capacity.

Therefore a very efficient planning is required. This report basically covers the planning

that EBM aimed for Peanut Pik.

Page 2: Peanut Pik Report1

2

ISSUES AND OBJECTIVES

To research on Biscuit Industry and „Nuts‟ biscuits Sector of Pakistan

- Macro and Micro Environment Analysis

- Market Share of EBM in Biscuits Industry and market share Peanut Pik in

Nuts Biscuits Sector

- PEST Analysis.

Peanut Pik Biscuits:

- Target market, segmentation and positioning

- Internal factors affecting the marketing strategies of Peanut Pik Biscuits

(SWOT analysis)

- Factors affecting its marketing mix

- Marketing strategy

- Marketing Budget plans and issues

- Evaluation of Strategy

Page 3: Peanut Pik Report1

3

BISCUIT INDUSTRY

History

When Pakistan was born, it wanted important industries like steel mills, agriculture,

shipping, textile etc to grow in order to make the economy thrive. Therefore other so-

called insignificant industries like biscuit industry were always been under less fame and

attention. However, as the demand grew and the economy kicked off well, there

industries too got into the big picture.

EBM (English Biscuit Manufacturers ltd) were the pioneers in the branded biscuit

industry . They started off by making two products but gradually, they expanded not only

geographically but also in their product varieties to suit different types of consumers

having different tastes and preferences. The most notable key players at that time, Union

Industries wither confectionery biscuits, moved out of the market with the introduction of

EBM.

During that same period, Continental Biscuits entered the biscuit industry. It has the right

product offering for it target market and therefore soon acquired the larger market share

of the biscuit industry posing competition to EBM. The proportion of unbranded biscuits

was higher as compared to branded biscuits and the major challenge at that time was to

convert unbranded biscuits to branded biscuits. Companies took up the challenge and

responded with new product varieties and categories, new packaging and promotion

jingles etc as consumer preferences and tastes were changing; (who can forget the famous

jingles such as: Candi by LU; TUC kay sath chaiya, Mama Sooper..…) and now biscuits

in Pakistan have now assumed the role of "FOOD BETWEEN MEALS" in nearly every

household.

Page 4: Peanut Pik Report1

4

ABOUT EBM

English Biscuit Manufacturers (Private) Limited was established as a joint venture

company in 1965 with the name of Peek Freans Pakistan Limited. In 1966, the UK

sponsor company was renamed Associated Biscuits International Limited (ABIL), while

the venture was renamed English Biscuit Manufacturers (Private) Limited (EBM), which

stands to date.

EBM started manufacturing and marketing the world famous Peek Freans range in 1967

in order to provide Pakistani consumers with nutritious and hygienically packed biscuits

of the highest quality.

True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industry in

Pakistan for over 40 years by playing a pioneering role in providing innovative and high

quality biscuits for every taste bud.

EBM‟s trademark, Pied Piper, made its mark three and a half decades ago, but continues

to remain in the hearts, minds, and souls of the people through the variety and excellent

quality of biscuits manufactured under its umbrella. EBM enjoys the distinction of being

the first food company in Pakistan to promote biscuits as 'food between meals'

EBM has been in the business of manufacturing and marketing branded biscuits in

Pakistan for over 40 years. The brand name 'Peek Freans' is a household name, and

people trust and believe in the quality of the products produced under this brand. EBM is

also the first biscuit company in Pakistan to have achieved ISO - 9001 Certification in

correspondence with its institutional slogan 'The Legend Leads'. The achievement also

endorses the company's firm commitment to high standards of quality.

Under the brand range, Peek Freans, the company today carries the largest variety of

biscuit products including Marie, Gluco, Click, Sooper, Rio Strawberry Vanila, Rio

Choco Vanila, Rio Choclate, Rio Vanila, Party, Peanut Pik, Peanut Pista.

Page 5: Peanut Pik Report1

5

VISION

To be recognized as a LEADING and PROGRESSIVELY FORWARD looking FOOD

COMPANY, providing the best quality products to everyone in Pakistan

To be an INSTITUTION financially healthy, promoting universal human values and

growing as a useful, purposeful corporate citizen

CORPORATE OBJECTIVE

Transform EBM into a living institution with a body, mind & soul which is recognized as

a good corporate citizen due to its core values as Open minded, transparent, &

responsibly delivering consumer satisfaction with a sprit to excel.

Page 6: Peanut Pik Report1

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Market Scenario of Biscuit Indutry

By 1999-2000, 50% of the market was dominated by branded biscuits, in which EBM

had a sizeable share. The rest was taken up by various small companies like Bisconni,

Mayfair and Kolson who too wanted to a slice of the market share. Consequently, by

2006, the unbranded biscuits had a market share of 29 per cent and the branded biscuits

had 71 per cent market share.

Biscuit Industry

Branded

biscuits,

71%

Unbranded

biscuits,

29%

Branded

biscuitsUnbranded

biscuits

In the branded biscuits sector, the market shares of key players (EBM and CBL) are:

Branded Biscuits sector

Continental

Biscuits Ltd.

(LU)

26%

Others

37%

English Biscuit

Manufacturers

(EBM)

37%

English

Biscuit

Manufact

urers

(EBM)Continen

tal

Biscuits

Ltd. (LU)

Others

Other biscuit manufacturers include:

Coronet Foods (Private) Ltd

Ismail Industries

Montgomery Biscuits

Silver lake

Mehtab Industry (Krunchi)

It was reported that there were some undocumented/illegal biscuits manufacturer that

were surging up in the rural areas of Pakistan, however, they don‟t pose much

competition to the branded biscuits sector.

Page 7: Peanut Pik Report1

7

1,028,5781,144,607

2,074,804

3,065,518

4,244,828

5,577,5825,587,576

6511223

900,000

1,400,000

1,900,000

2,400,000

2,900,000

3,400,000

3,900,000

4,400,000

4,900,000

5,400,000

5,900,000

'01 - 02 '02 - 03 '03 - 04 '04 - 05 '05 - 06 '06-07 '07-08 '08-09

81%

48%

31%

11%

31%

-2%

+17%Sales Volume – Master Cartons

Page 8: Peanut Pik Report1

8

‘PEST’ ANALYSIS

Political/Legal Environment Analysis

Being a part of the food processing industry, biscuit industry must also follow rules of

quality and standard. However, only some companies are able to fulfill the requirements

of international regulatory authorities like Hazard Analysis and Critical Control Points

(HACCAP), Good manufacturing practice regulations (GMP), International Organization

for Standardization (ISO) and other standards. The reason is that the biscuit industry is

very volatile in terms of prices for materials and as high quality comes with high cost,

smaller companies are not able to afford it.

Only EBM has achieved internationally recognized credentials. The prestigious

organization has earned 150 9001:2000, ISO 14001:2004, 150 27001, HACCP

certifications

According to the government policies regarding biscuit industry, the governments has

realized the importance of exporting non-traditional items and have supported the

industry in the areas where the need is. The Export Promotion Bureau is also encouraging

to enhance the export of biscuits.

Economic Environment Analysis

Standards of living have increased which have influenced consumers to have a more

sophisticated and balanced lifestyle. Rather than having oily “samosas and pakoras” at

tea time, more and more people have started to consume biscuits which is a better and a

healthy combination with tea.

Focuses towards education have also increased the consumption of biscuits. As people

are more educated now, they are more likely to be influenced by media promotion. In this

technological era biscuit manufacturers have also been benefited from the advantage of

media and IT boom. This allowed them to reach their consumers more effectively and

profitably.

Page 9: Peanut Pik Report1

9

Social Environment Analysis

The biscuit industry has been divided into different product categories and varieties that

are catered to suit different consumers with different tastes. The manufacturers have been

able to segment the industry according to different classes, tastes, age groups, lifestyles

etc. New product varieties were introduced such as the following:

Types of Biscuits Biscuit that fall into the category

Soft & Sweet Plain

Sooper, Bakeri, Gala, Bravo,

Treat…

Cream Filling Prince, Rio, Cocomo, Jam Hearts

Salty Snacks TUC, Saltish

Indulgent/Sweet Candi, Chocolate Chip

Plain Glucose Munna, Gluco, Tiger

Ingredient Based Party, Zeera Plus, Peanut Pik

Healthy Wheat Slices, Wheatable

In 2004, there was a growth in soft and sweet plain biscuits segment which is primarily

dominated by Sooper and Bakeri, having a collective share of 24% in the total biscuit

market.

Different product category caters to different types of consumers. Adults and oldies

prefer salty biscuits and ingredient based biscuits as compared to children who prefer

cream filling and glucose biscuits. Consumers, nowadays, have become very hygiene

conscious due to increase in education levels and media promotion. Therefore those who

prefer to have a nutrition filled diet prefer healthy biscuits like wheat slices etc.

Technological Environment

Due to the “IT boom”, it has been advantageous to biscuits manufacturers to reach the

consumers effectively using media sources. This has increased the awareness of their

products to a very large extent. With media, biscuits manufacturers can reach a larger

audience and also reach consumers in rural areas.

“Advertising and marketing in the (biscuit) industry has surpassed all other benchmarks

in the previous years with serious investments in brand building. Over Rs. 0.5 bn is

estimated to be electronic media spending in 2007 with a total marketing spending of no

less Rs. 1.0 bn; this has grown at estimated 25% per annum over the last few years!”

Usage of the internet has also helped biscuit manufacturers to segment and find out about

consumer insights by contacting them easily over the internet. Consumers can use online

feedback form to give feedbacks about the likes and dislikes regarding the product and

companies can respond to them more effectively and efficiently.

Page 10: Peanut Pik Report1

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SWOT ANALYSIS

Strengths:

Strong company image and financially very strong

Good research and development department. Established Center of Excellence in

2006

Market leader in peanut biscuits in Pakistan

Had previously carried out effective promotion strategies

Quality production management that has earned EBM numerous ISO

Certifications

Trained Human Resource

Conservative Financing

Weaknesses:

Relatively low promotion for Peanut Pik as compared to other brands like Sooper

Not easily available.

Target market not clearly defined.

Less adaptability to market environment over the years

Opportunities:

Target market can be expanded by actively pursuing selected market segments

Export Markets

Rural markets

Can easily increase revenue by making the product available and improving

distribution

Growth exists by means of changing packaging, look and brand positioning.

Media has enabled companies to reach remote areas and market the product there

Increasing purchasing power in the Pakistani Market has substantially increased

the purchase of consumer goods so opportunity exists in getting the maximum

share of the market

Increase in hygiene consciousness amongst consumers has led them to substitute

snacks like samosas, spring rolls, jalebis etc with biscuits

New market segments like Corporate Selling can be considered

New product variations can be introduced

Relative low inflation in biscuits as compared to other snacks

Page 11: Peanut Pik Report1

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Threats:

Competition is very stiff in biscuits industry.

If price is altered, you are likely to lose a great chunk of market share.

Unbranded (bakery) biscuits are available in the market at a much cheaper rate.

A lot of substitute products to biscuits are available in the market that are eating

up share of customer‟s wallet

Competitors esp. new entrants are doing heavy promotion of their brands which

EBM is not able to match for Peanut Pik

OBJECTIVES:

To penetrate into the biscuit industry as specialized nut biscuits.

PRODUCT LIFE CYCLE

In the initial years of Peanut Pik Biscuit, it had a slow sales growth rate. Consumers were

unaware of the product and it was not readily accepted by the market as it was a new

product ever in the nut biscuits sector. Profits were low because of low sales and high

unit costs.. However, as it was a first mover (first nut biscuit), it was loved by consumers

and within few years they started spreading a positive word of mouth.

Page 12: Peanut Pik Report1

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Then the product was liked by the consumers and Peanut Pik enjoyed better sales than

before and low unit costs which led to a considerable high contribution margin for EBM.

Profits were high and Peanut Pik spent on its marketing campaign and advertising to

further influence and to increase the sales of its products. Peanut Pik is the market leader

as it was the first nut biscuit ever introduced

The sales of Peanut Pik were stable and generating considerable profits for EBM.

However, it was still a start product for EBM but can be converted into a cash cow

product for EBM. Peanur pik was in the maturity stage of the “product life cycle” and

they keep on re-innovating and re-igniting it so that to keep it in its maturity stage or to

bring its growth stage once again and avoid it to go into the decline phase.

TARGET MARKET

Introduction

The consumers of today are highly informed due to the development in communication.

TV, radio, newspapers, media and specially the internet has provided the consumers with

whatever information they are seeking. Therefore the manufacturers cannot just blindly

make their products.

They need to know the insights of their consumers who want to and are willing to buy

their products. However, increase in globalization has also limited the choices, consumers

have. And therefore, nowadays, especially the production of consumer goods is

“consumer driven”. And the manufacturers are required to focus on these factors in order

to maintain growth and stability in the company.

True to its corporate claim of 'The Legend Leads', EBM has led the biscuit industry in

Pakistan for over 40 years by providing innovative and high quality biscuits.

“Peek Freans” is the household name under which EBM produces and markets its

biscuits. The name is so big that now the consumers blindly believe in the quality of the

product. The reason behind this is that EBM has actually maintained its quality in all its

products over the years. And now, Peek Freans Pied Piper is the most famous and

popular icon in the industry.

Page 13: Peanut Pik Report1

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Target Audience

If one glances at EBM‟s brand portfolio, he/she would notice that EBM covers almost

every segment of the market. EBM attempts to cater to every taste in the market; be it

young or old, men or women.

In today‟s world, consumer preferences change very rapidly in terms of taste and price.

These preferences are very strong in low involvement product because they are not very

high priced. In order to keep pace with the changing consumer taste and preferences,

Peanut Pik Biscuits had hit the target market not only on the basis of demographics but

psychographics.

It targeted those consumers who preferred nuts in their biscuits. However, some were

also not very fond of nut and some might even be allergic to them, therefore the nut

segment was not that big in the biscuit industry.

Peanut Pik focused towards the urban market as major volume generating regions were

Karachi, Lahore, Hyderabad and Rawalpindi/Islamabad. As product scored high in terms

of quality as compared to any other nutty biscuit, their rural market continued to generate

sales. However, more was to be done to tap the full potential of the rural market.

Page 14: Peanut Pik Report1

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MAJOR SEGMENTATION VARIABLES

Geographic Factors

Region: Sindh, Punjab, NWFP, Balochistan

Cities/Towns:

Metropolitans, Cosmopolitans, Small Cities, Towns; Population ranging from 0.5 million

to 1 million and cities with over 1 million population

Psychographic Factors

Lifestyle: Culture-oriented; Sophistication-oriented

Social Class: Lower Class (lower, middle, upper), Middle Class (lower, middle, upper),

Upper Class (lower, middle, upper).

Demographic Factors

Personal Factors

Age: 20-34 years; 35-49 years; 50-60 years; 60+

Gender: Male and Female

Behavioral factors

Occasion: Regular

Benefits: Quality, taste and price

User Status: Regular user; potential user

Usage rate: Medium

Loyalty: Medium; Strong

Readiness Stage: Not fully aware

Attitude towards product: Positive

Page 15: Peanut Pik Report1

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MARKETING MIX (4 P’S)

The concept of “Food between meals” was devised by EBM and till now they have been

pursuant in their philosophy. They have successfully conveyed this to their consumers

and in them, they have developed the trust and confidence regarding the company and in

its high quality products.

“Biscuits are Food” – healthy and nutritious; not only for children but also for adults.

Peanut Pik and its 4 P’s

Planned mix of the controllable elements of a product's marketing plan commonly termed

as 4P's: product, price, place, and promotion. These elements are adjusted until a right

combination is found that serves the needs of the product's customers while generating

optimum income.

Product:

Peanut Pik is a unique biscuit that offers a distinct blend of natural fresh peanut. It has

sweet taste, crunchy bite with shinning gloss on peanut sprinkle top. It is a value added

product of EBM as EBM imports peanuts and nuts from outside to add into it. Suggestion

were made to increase peanuts in the product but they were turned down as EBM didn‟t

wanted it to be similar to LU‟s peanut plus.

Ingredients:

It contains wheat flour, hydrogenated vegetable oil, sugar, peanut grits, invert syrup, corn

flour, skimmed milk powder, salt, emulsifying agent, leavening agent, synthetic flavors

(mixture of both natural and artificial flavoring compound)

Nutritional information

Serving Size: 4

Per serving 24gms Per serving 100gms

Energy (K Cal) 121.7 507

Proteins (gms) 1.6 6.67

Carbohydrates (gms) 16.2 67.5

Page 16: Peanut Pik Report1

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Price of Product

Product

Weight per

piece in grams

No. of pieces

per master

carton

FOB price per

master carton

in $

No. of master

carton fit in 20'

container

Peanut

Pik 87 gms. 144 Rolls 16 540

The branded biscuit segment grows at a rate of 14% per annum and this is largely due to

the price stability of its products for the last 8 yrs. EBM has tried to make biscuits more

affordable for middle to lower middle income consumers. EBM has successfully re-

shaped the idea of consuming biscuits only at tea-time to making it an everyday necessity

product.

All EBMs biscuits including Peanut Pik were available in small packs for children and

for people working in offices whose use them at breakfast or lunch. Apart from that its

easy availability quality and cheap prices makes it‟s more alluring to its customers. EBM

is one of the leading biscuits manufacturers of Pakistan and all its biscuits in its range are

very successful.

As EBM provides individual attention and strategy for each type of biscuit it offers. This

is seen in its advertisements for example of Gluco and Sooper the ads are totally different

depicting totally different marketing strategy which proves that EBM develops individual

strategy for each of its biscuits.(REMEMBER SAB SAY AAGAY,SAB SE OOPER

PEEK FREANS SOOPER)

Price of peanut Pik was same as of its competitors i.e. peanut plus biscuits of LU. Half

roll of peanut Pik was of Rs.12 and its packet of Rs. 22. At that time there were some

biscuits like CAFÉ was being sold at 10 per half roll but EBM did not face any price

wars regarding its products which were and are sill market leaders in their segments such

as Peanut Pik. They believe that as these products are the market leaders, if they increase

the prices of their products, others will follow suit. Other products in the markets are

followers and they don‟t pose any frontal attack on their market leader Peanut Pik.

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Packaging:

EBM is the only Company in the industry to have achieved recognized international

certifications pertaining to quality control, environmental management system and

human resources management, including ISO 9001:2000, ISO 14001:2004, ISO:27001,

HACCP Certifications, ISO:22000, and IIP (Investors in People) Recognition.Proactive

environmental practices form the basis of all EBM's operations. The HACCP

certification itself means "prevention from hazard" by reaching out and controlling the

sources of supply like raw materials and the storage and the distribution. Integrated pest

management and ecologically hygienic processes are strictly followed in the factory

premises.

EBM provides healthy and nutritious biscuits in a hygienic and high quality package.

They are the pioneers of packaged biscuits in Pakistan; therefore they maintain their high

quality packing that would appeal to its customers. And the packing‟s of biscuits are

tested in labs and is prevented from all unhygienic conditions. Packaging material for

Peanut Pik biscuits were bought from the local market and it included inner films, outer

films and master cartons at reasonable prices.

Following are the two packages in which Peanut Pik are sold:

Packet Half Roll

Weight (gms) 124 79 now (77)

The packaging of Peanut Pik was not very attractive as compared to its other

competitive products in the market and also to its own product SOOPER. The white

and brown color wasn’t very appealing to its customers although the taste of peanut

was very mouth watering to those who prefer nut biscuits.

Peanut Pik was not a high volume generating product to EBM and therefore they don‟t

prefer to spend much on its packaging and promotional details. EBM prefers to spend on

those products which are their high volume

generating products like Sooper.

However EBM realized that they must

also focus on those products too that are

low volume generating because one never

know that these products can too turn out

be high volume generating products for

them too. Therefore EBM focussed on

improving Peanut Pik‟s packaging as well

and include attractive fonts and colors to

make it more appealing to its customers.

Recently EBM has changed the packing of Peanut Pik from white to an appealing

REDDISH BROWN color with white fonts with a label of “NEW PEANUT PIK

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BISCUITS”. The current packing gives an image of a strong brand ,freshness of peanuts

and improved taste.

EBM also exports its products and maintains its high quality packing by using special sea

packaging material which ensures that its products are intact during and after transit.

Placement of product

Since Peanut Pik was one of the FMCGs (Fast Moving Consumer Goods) also known as

that are sold quickly at relatively low cost. Though the absolute profit made on FMCG

products is relatively small, they generally sell in large quantities, so the cumulative

profit on such products are adequate. Peanut Pik does give EBM a substantial

contribution margin; however it was still known as a low volume generating product for

EBM.

Consequently, Peanut Pik lacks in distribution although being an FMCG product because

it lacked in developing mass awareness which relatively affects its distribution

The retailers were quite aware that EBM‟s biscuit, Sooper, is highly consumed and

preferred among the people of Pakistan, therefore they prefer to keep Sooper on the

shelves of their store. And in order to promote and sell their low volume generating

products, EBM provides a condition to their retailers that they would provide them with

Sooper if they also keep Peanut Pik and others on their shelf too.

By doing this ,Peanut Pik biscuits were available at almost every pan shop, superstore,

canteen, medical or grocery store. It‟s now quite easy to find Peanut Pik Biscuits as they

are adequately available at almost the stores. Superstores like Agha‟s , Ami‟s, Rajani‟s

and almost all stores at various hospitals, colleges, airports and schools keep a stock of

these biscuits.

Peanut Pik Biscuits were sold in a nominal price range because:

1) It has great competition from other biscuit producing companies

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2) It has been in the market since a long time and cant increase its price all of a

sudden

3) It is a fast moving consumer good (FMCG)

Promotion

Peanut Pik had been in the market since quite a long time. It was in the phase of

“maturity” in the product life cycle and so constant promotional activities are done by

EBM to maintain or increase its customer base. EBM used Pied Piper as a uniform icon

to promote all its products and hence, Peanut Pik is also promoted with the same icon.

EBM use on and off campaigns for Peanut Pik although its promotion was not done

excessively and they precisely don‟t promote Peanut Pik alone; they used the same

advertisement and billboard ads for both Peanut Pista and Peanut Pik as they both lie in

the same category of nuts and peanuts biscuits.

Peanut Pik and Peanut Pista biscuits were a value added biscuits for EBM as they were

not a plain biscuit; imported and high quality peanut and nuts are added in it. Therefore,

EBM believed that it would be consumed even if excessive advertising is done or not as

there are a large number of consumers who prefer nuts biscuits.

Primarily, the promotion of Peanut Pik and Peanut Pista was done in winters as nuts were

mostly consumed and preferred in winters due to its taste and flavor. And although being

a seasonal product, the promotional campaigns of Peanut Pik ran mostly during winters.

EBM used TV commercials, radio broadcasts, billboards, print, school activities etc.

promotions for Peanut Pik

MARKETING STRATEGY

Marketing Strategy:

The marketing strategy of Peanut Pik was penetration. EBM believed that the target

market has changed on it own. Peanut Pik was firstly consumed by toddlers and children.

And when they realize that even adults were consuming it, it improved the taste of Peanut

Pik in order for it to have a more mature taste and then they advertised it accordingly.

EBM believed that Peanut Pik has a universal appeal and taste; it can be consumed any

time in the day. However, Peanut Pik had a low volume generating product and therefore

EBM spends more on advertising and promotion of its high volume generating products

like Sooper. Though, EBM believed that even Peanut Pik can contribute to higher sales

and profits margins if it is position and promoted in a better way. EBM started market

penetration by improving the other two P‟s of marketing mix and i.e. improving on

packaging and promotion.

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Effective promotion was started . This results in the increased awareness and also

capture the “top of the mind” position in consumers‟ minds. This means that whenever a

consumer thinks of having a biscuits (if he/she likes nut biscuits), then Peanut Pik should

come in their minds.

Action Plan

New packaging of peanut Pik should be introduced which is more colorful and up

to industry standards (It is obvious from the new packing).

Promotion to be carried out as follows

o TVC campaign was carried

o Ad campaign in magazines should be carried out in the same fashion.

Billboards should be set up .

The new promotion schemes should focus the new target market and packaging.

EVALUATION & BUDGET

EBM evaluated it’s strategy regarding peanut pik as follows :

Internal Evaluation

1) Company firmly believes in its strong company image and part of its strong

Peanut Pik sales owe it to the brand name “Peak Freans” attached to it

2) Company has other prior brands so company budgets a relatively low marketing

expenditure for Peanut Pik

3) It enjoys a monopoly in nuts section as it Is the only nut biscuit producer in the

industry so it does not believe in a heavy promotion for the industry

4) Also it has carried out previous strong promotion which it believes still works for

today‟s sales

5) Company does not plan to introduce more variants of Peanut Pik.

External Evaluation

1) Company is not willing to explore other market segments like some (rural areas)

or increase sales for Peanut Pik through promotion because of priority issues

2) Company has maintained effective pricing and is the market leader in terms of it.

When EBM changed prices for its products, then competitors followed

immediately.

3) Company might consider changing packaging in the future but right now it is

going on with its dull packaging of Peanut Pik

4) There is intense competition in biscuit industry and EBM basically leads the front

with its brands like Sooper, Rio and Gluco

5) There is a small threat of substitute products for biscuits like chips, samosas etc,

but company is not really concerned about them

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6) Some business mafias produce fake identical products of Peak Freans, including

Peanut Pik, company has its issues over it, but it is not of top concern

7) Threat of new entrants is very much there esp. after the arrival of Bisconni.

Company is right now focusing on its major brands.

PEANUT PIK AT PRESENT

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References:

Mr. Adeel Ahmed

Brand Manager, English Biscuits Manufacturers ltd.

Mobile: 0321-2424977

Ms Hafsa Farooqui

Brand Manager, English Biscuits Manufacturers ltd.

Mobile: 0321-2636956

Internet References:

www.ebm.com.pk

„TAKING YOU THROUGH THE BISCUIT INDUSTRY‟ by SHOAIB

SIDDIQUI; Marketing consultant ([email protected])

Article “English Biscuit Manufacturers (Pvt.) Ltd - a living company” by

KHAWAR M. BUTT (April 07, 2008; Business Recorder)

Business Recorder (May 14, 2009)

http://www.pakistaneconomist.com/issue2001/issue33/etc9.htm


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