Collaborated analysis paper in association with 0105-363-01 Marketing - Professor Marty Lawlor Rochester Institute of Technology Fall 2006Full description
Collaborated analysis paper in association with 0105-363-01 Marketing - Professor Marty Lawlor Rochester Institute of Technology Fall 2006
marketing
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Listen to the Sound of the Day Yesterday, Today & Tomorrow Tomorrow By
Zain Ul Abideen MBA Class of 2012
Vision • To be recognized as a
LEADING and
looking F O O D C O M P A N Y , providing the best quality products to everyone in Pakistan P R O G R E S S I V E L Y F O R W A R D
• To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen
Core Values • Follows the Highest Ethical Values & Professionalism • Believes Product Quality is next to religion • Pursues International Safe Food Standards & Hygiene to promote National Health since its very inception • Environmentally sensitive & responsible • Attains Technological Advancement in both human resources, plant & machinery
Peek Freans Original Sandwich biscuits Lemon Flavor
17
9
5
Chocolate Flavor
17
9
5
17
9
5
PEEK FREANS PRICING • EBML bases its price on the Cost Structure, Competitors’ prices and the Value given to a brand by the consumers • Peak Freans Above pricing are on basis of Demographic segments. Peek Freans also provide bulk Discounting on Stores Like Metro, Departmental, and Hyper-star. • There are gift vouchers within the biscuits packs, some of them are cash prizes, Children stuff and Family pack discount.
Placement • EBML uses Indirect Marketing Channels, that is it has intermediaries (distributors) between the company itself and the retailers who in turn provide their products to the final consumers. • The main task for EBM regarding market positioning is to position its products in such a way that it is able to create more consumer involvement in EBM products and to respond LU’s strategies in this regard.
PROMOTIONS • It is a combination of its advertising, sales promotion activities, publicity campaigns and personal selling tactics. • Three approaches they use are: – Informative Promotion – Persuasive Promotion – Comparison Promotion
Promotions •
Informative Promotion – Recently EBML has decided to concentrate on its leading products. In addition to this all new products EBML launches have to be presented to the public highlighting its features, its taste etc.
•
Persuasive Promotion – Various promotional activities conducted by EBML are centered towards Competitor persuasion. Considering the tough competition it faces from LU, EBML has to convince people into switching to or building preference for its brands.
•
Comparison Promotion – Once again, in the wake of competition EBML has to directly or indirectly position its products against other products in the market. In EBML’s case, comparison promotion is extremely important because every new or existing product of EBML, which is competing against LU’s product, has to be given an edge, a comparison, and a foothold.
Competition The major competitor of English biscuits is • “CONTINENTAL BISCUITS” (LU),
which has a significant share of the market in terms of sales volume. – LU basically has five to six brands which it markets in comparison to English Biscuits Manufacturers. • Prince
Milco LU
• Tuc
Candi
• Gala
50-50
Competitive Advantage •
wide product line with Pied Piper Branding support
• A strong distribution network •
Innovation in terms of new ingredients
•
Value pricing
• A well implemented offensive strategy •
Competitive advantage in terms of more varieties of biscuits
•
Well Established brand equity
BCG Matrix Product Line
STBU
Market Growth Rate %
Relative Market Share %
Peek Freans Sooper
Cash Cow
27
76
Peek Freans Gluco
Cash Cow
29
71
Peek Freans RIO
Question Mark
Peek Freans Peanut Pik
Star
59
75
Peek Freans Peanut Pista
Star
52
71
Peek Freans Party
Question Mark
18
79
Peek Freans Click
Question Mark
31
59
Peek Freans Marie
Dog
2
42
Peek Freans Whole Wheat Slices
Star
56
83
Peek Freans Butter Puff
Cash Cow
31
70
Peek Freans Saltish
Dog
5
32
Peek Freans Farm House Cookies
Star
64
81
Peek Freans Original Sandwich biscuits
Question Mark
22
71
35
55
Strategy since 2000 & Onwards •
Current Times – Era of EBM Growth – – – –
•
Continue Price Freeze till 2007 Continue High Volume, Low Margin Strategy Focus on Increasing Internal economies and efficiencies Cost reductions without impacting product quality • Self-power generation • Reduction of product wastages • Increase in plant efficiencies (new plants) • Focus on long-term contractual agreements for raw materials procurement • Alternate sourcing of packaging material (imported vs. local)
No compromise on the product quality via any cutting of corners – Ensuring that the consumer is not cheated – Trust and confidence is maintained
The Strategy of 2000 & Onwards contd… • Focus on increasing Distribution Penetration into Rural Markets – Rural Development Programs – Opening of New Towns & Direct Servicing
• Focus on Demand Generation – Out-spending competition on media – Trial generation & repeat purchase • Consumer Promotions • Brand Activations
– Heavy investment behind CSR initiatives to project positive brand & company image
• Demand of Brands > Ability to Supply – 5 Focus Brand Strategy
