MARKETING PLAN OF PEEK FREANS PEANUT PIK
By UMAIR RAFIQ (11595) FAWAD KHALIQ (XXXX) Athar Ath ar Ishr Ishrat at (11525) (11525) Arrange in alpha or numeric order Date: 16th April 2011
The History of EBM •
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English Biscuit Manufacturers (Pvt) Ltd was established as a joint venture company company in 1965 with the name of PEEK FREANS PAKISTAN LIMITED In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited (ABIL), while the venture was renamed to English Biscuit Manufacturers Manufacturers (Pvt) Ltd, which stands to date EBM started manufacturing and mark mar keting of world famous Peek Freans Freans range in 1967 in order order to provide provide Pakistani Pakistani consumers with good quality, nutritious and hygienically packed biscuits
Vision •
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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
Our Products
Market Scenario Of Biscuit Industry •
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By 1999-2000, 50% of the market was dominated by branded biscuits, in which EBM had a sizeable share
37%
37%
In the branded biscuits sector, the market shares of key players (EBM and CBL) are
U L 26%
Gross Sales Of EBM 05-06
06-07
07-08
08-09
09-10 7,467,493
5,607,532 3,936,545 2,648,465
Gross Sales Value (Millions)
7,859,720
Technological Environment - Types Of Biscuits Types of Biscuits Soft & Sweet Plain Cream Filling Salty Snacks Indulgent/Sweet Plain Glucose Ingredient Based Healthy
Biscuits (Category) Sooper, Bakeri, Gala, Bravo, Treat Prince, Rio, Cocomo, Jam Hearts TUC, Saltish Candi, Chocolate Chip Candi, Chocolate Chip Party, Zeera Plus, Peanut Pik Wheat Slices, Wheatable
SWOT ANALYSIS STRENGTHS Strong company image GOOD R & D Market leader in peanut biscuits in Pakistan Quality production management
OPPORTUNITIES Target market can be expanded Export Markets Media New product variations can be introduced Can easily increase revenue by making the product available and improving distribution
WEAKNESSES low promotion for Peanut Pik Target market not clearly defined. Not easily available. Available only in two flavors
THREATS Stiff Competition 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. Competitors esp. new entrants are doing heavy promotion of their brands which EBM is not able to match for Peanut Pik
PRODUCT LIFE CYLCE
OBJECTIVES: To penetrate into the biscuit industry as specialized nut biscuits (new segment) •
Because of the limited plant capacity of SOOPER ,EBM decised to focus on Peanut Pik as it was a market leader in nut sector •
They wanted to create a differentiation as no other company in the past has hit this sector •
Since nuts are an expensive food item ,they want their audience to experience it in a unique way in the form of peanut Pik •
PRODUCT LIFE CYCLE •
Initial years of Peanut Pik Biscuit, it had a slow sales growth rate.
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Consumers were unaware of the product
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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. Peanut Pik is the market leader as it was the first nut biscuit ever introduced
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Since Sooper was a STAR for EBM they didn’t focussed on Peanut Pik.
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Still a start product for EBM but can be converted into a cash cow
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Peanut 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 •
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Advance communication medium are providing countless information. Therefore manufacturers cannot just blindly make their products Every manufacturer needs to know the insights of their consumers about who want to and are willing to buy their products.
“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.”
Target Audience •
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EBM covers taste of almost every segment of the market; be it young or old, men or women. Consumer preferences change very rapidly in terms of taste and price specially in low involvement product. Peanut Pik targeted those consumers who preferred nuts in their biscuits. Peanut Pik mainly focus towards the urban market such as Karachi, Lahore, Islamabad etc.
Market Segments
Market Segments •
Following are some of the factors causing major market segmentation; –
Geographic Factors •
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Region: Sindh, Punjab, Balochistan, khyber pakhtunkhwa Cities/Town: 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
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Social Class: –
Lower Class (lower, middle, upper)
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Middle Class (lower, middle, upper)
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Upper Class (lower, middle, upper).
Market Segments –
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Demographic Factors •
Personal Factors
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Age: 20-34 years; 35-49 years; 50-60 years; 60+
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Gender: Male and Female
Behavioral factors •
Occasion: Regular
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Benefits: Quality, taste and price
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User Status: Regular user; potential user
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Usage rate: Medium
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Loyalty: Medium; Strong
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Readiness Stage: Not fully aware
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Attitude towards product: Positive
Marketing Mix (4 P’s) •
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The concept of “Food between meals” was devised by EBM and till now they have been pursuant in their philosophy.
Product: –
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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.
“Biscuits are Food” – healthy
and nutritious; not only for
children but also for adults.”
Marketing Mix (4 P’s)
Marketing Mix (4 P’s) –
Ingredients: •
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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
Marketing Mix (4 P’s) Price of product –
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EBM has tried to make biscuits more affordable for middle to lower middle income consumers 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. Easy availability, quality and cheap prices makes EBM biscuits more alluring to its customers.
Marketing Mix (4 P’s) –
Packaging •
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EBM has multiple international certifications pertaining to quality control, environmental management system and human resources management. EBM provides healthy and nutritious biscuits in a hygienic and high quality package.
Placement of product –
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Peanut Pik was one of the FMCGs (Fast Moving Consumer Goods). Peanut Pik biscuits were available at almost every pan shop, superstore, canteen, medical or grocery store
Marketing Mix (4 P’s) –
Peanut Pik Biscuits were sold in a nominal price range because:
1. It has great competition from other biscuit producing companies 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)
Factory
Distributors
Wholesalers
Retailers
PROMOTIONAL OBJECTIVES
PROMOTION •
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Peanut Pik is 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 combined campaigns for Peanut Pik & Peanut Pista as they both lie in the same category of nuts and peanuts biscuits EBM used TV commercials, radio broadcasts, billboards, print, school activities etc. promotions for Peanut Pik
Marketing Strategy •
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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. EBM believed that Peanut Pik has a universal appeal and taste; it can be consumed any time in the day.
Marketing Strategy Action Plan: •
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New packaging of peanut Pik is introduced which is more colorful and up to industry standards. The packaging was introduced to differentiate from Peanut Pista as both were in White packaging and at retail level it was difficult to differentiate them.
Marketing Strategy Action Plan: •
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Before 2002-2003 it was only available in Family packs so Half roll,Snack Pack was introduced to benefit the customers. Promotion carried out as follows; TVC campaign was carried 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. • •
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Evaluation & Budget EBM evaluated it’s strategy regarding peanut pik as follows: •
Internal Evaluation 1.
Company believes on its strong image of the brand name “Peak Freans”
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Company budgets relatively low marketing expenditure for Peanut Pik.
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EBM enjoys its monopoly in nuts section so it does not believe in a heavy promotion for the industry
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EBM believes previous strong promotions still works for today’s sales
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Company does not plan to introduce more variants of Peanut Pik.
Evaluation & Budget •
External Evaluation 1.
EBM is not interested in exploring other market segments
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Company has maintained effective pricing and is the market leader in terms of it
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EBM has changed packaging for all of their product for promotions
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EBM leads the front of biscuit industry with its brands like Sooper, Rio and Gluco
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Company is not really concerned about other small threat of substitute products for biscuits like chips, samosas etc,
Current Situation
1. Market Leader in nut segment 2. 4th high production brand of EBM. 3. Easily avaiable. 4. When customer thinks of peanut they think Peanut Pik. 5. Cash cow for EBM.
The Future •
God has been kind to us
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Our Consumers have been kind to us
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We have lived up to their trust and confidence in our company and brands through our Marketing initiatives Aggressive marketing plans for the future Currently it is a cash cow for EBM and they are planning to turn it into STAR.
