MARKETING MANAGEMENT

GROUP MEMBERS

MEHSHID KHAN NOORANI 6851

EESA IQBAL 7140

SUBMITTED TO

MR. SAMIN AHMED

EXECUTIVE SUMMARY

This is a marketing audit report of a Pakistani company FRESHMATE, selling its READY TO EAT product range, TAYAAR MAZAYDAAR, in Pakistan. It focuses on the market share, brand performance, and the 6P’s of marketing.

We went to the FRESHMATE Factory at C/31-A S.I.T.E head office and met Mr. Imran Aijaz, Marketing Executive . He briefed us with all the details regarding their marketing strategy developed for the brand. Freshmate introduced its Tayyar Mazaydar, Ready to Eat Meals range in Pakistan in the year 2007 and after successful test marketing of one year has moved to offshore markets. The company has acquired Halal And Tayyab (Hygiene) certificate from SANHA (South African National Halal Authority). In addition to this it has successfully certified itself with ISO standards. In Ready to Eat meals, Freshmate brings to Pakistani cuisine, the salient features of which are; 100% Natural (No preservatives), Fresh tasting food,  Shelf stable (No Refrigeration required), Halal,No MSG. The food is available in diversified range including; Chicken, Mutton Beef, Rice, Vegetables, Lentils & Pulses.

MISSION “To satisfy our stakeholders ans as a guiding principle to our business, be a benchmark for Quality, Creativity and Ethical Values” VISION  “Achieve leadership in all categories of our core business and diversify in areas which compliment the core business.”

Brand positioning statement

Tez Dum is currently positioned as a strong tasting (PF Blend) Brand for the people of rural and semi urban Punjab that helps bring out moral and physical

courage while injecting verve and heroic aggression into consumers through its rich, strong taste.

Who is the target audience?

Male (primary) and female (secondary) users of branded tea between the ages of eighteen and sixty.Strong tea drinkers who prefer their color to be rich and the taste to leave a slight bitter aftertaste Users and non users of branded tea in SEC B, C, D, E & FResidents of urban, semi urban and rural areas of upper, central and lower Punjab including siraiki belt (from Rahim Yar Khan to Multan). Average monthly income starting from PKR 5000 and aboveProgressive people with a strong sense of values and moral codes with the zeal to serve their nation and improve their living standards.Possess strong traits of courage, physical strength and a clear sense of right and wrong

MARKET STRUCTURE

COUNTRY’S SOCIO-DEMOGRAPHIC MOVEMENTS RELEVANT TO THE BRAND

As Pakistan itself is growing rapidly people have realized the essence of time and money. Consequently, majority of the working class have settled in urban well developed cities. Furthermore, people are always in pursuit of finding ways that could help them save time and achieve their goals fast. Many

CATEGORY AND/OR BRAND SOCIO-DEMOGRAPHIC COMPARISONS

Freshmate is a solution to their problem. With the availability of freshmate products in the market, people no longer need to cook at home or go for junk food to the restaurants. Freshmate brings convenience.

Shelf Stable foods is relatively newer concept in Pakistan compared to frozen category which is almost a decade old category but this shelf stable category is growing. Mutton category with the highest perceive value has been kept at highest price and Vege and lentils have been kept at levels lower than their actual value as perceived value of vege/lentils is lower. Therefore, its customers have remained loyal.

Item Cat. Taste Quantity serving Qty/per pack suggestion carton

Chicken Aaloo Qeema Chicken Mild 275 gms 2 persons 24Chicken Achari Chicken Very hot - Tangy 275 gms 2 persons 24Chicken Salt & Pepper Chicken Mild - Tangy 300 gms 2 persons 24Chicken Katakat Chicken Mild 250 gms 2 persons 24Chicken Handi Chicken Mild 250 gms 2 persons 24Chicken Hara Masala Chicken Mild/Hot - tangy 275 gms 2 persons 24Chicken Karahi Chicken Hot - Tangy 275 gms 2 persons 24Shahi Qorma Chicken Hot 275 gms 2 persons 24Matka Chicken Chicken Mild 275 gms 2 persons 24Chicken Nehari Chicken Mild/Hot 275 gms 2 persons 24

MARKET GROWTH INDICATORS: VALUE AND PRICE

MARKET GROWTH DRIVERS

Increasing usage of current users: at present usage is more for emergencies, traveling, change of taste. It will take sometime for consumers to take this into routine and daily usage. Offering more options will help in giving them more variety to choose from.

The market is increasing both in terms of value and volume. But more it temrs of price right now. Price – as price is increasing, value is increasing. So market is increasing. Higher consumption of these products in urban cities because of the presence of A-Class Stores and Super Stores

MANUFACTURER’S MARKET SHARE

0

10

20

30

40

50

60

Freshmate National Mommy's

Market share

RECENT LAUNCHES IN CATEGORY AND THEIR PERFORMANCE

Freshmate introduced its Tayyar Mazaydar, Ready to Eat Meals range in Pakistan in the year 2007. (Alhamdolillah) after successful test marketing of one year has moved to offshore markets.

Freshmates market share is around 40%, National’s Ronaq 52% because of its existing brand name and customer brand Recall and Mommy’s 8%.

BRAND PERFORMANCE

DURING LAST YEAR

BRAND MARKET SHARE (VALUE/VOLUME)

BRAND SHARE BY SEGMENT

It does not cover just one segment, Freshmate covers all the segments in the food industry such as Beef, Mutton, Chicken, Rice, Vegetables and Lentils. It treats all the segments as its Category of freshly packed ready to eat meals of our traditional Pakistani Cuisine

Freshmate was launched in Karachi in Feb 2007 and it has a good share compared to other brands in Karachi. It has kept its price constant and has gained sales. Brand market share has increased and has received good customer response with regard to the value of the product with its boost in sales volume in Karachi.

PENETRATION AND LOYALTY

BRAND SHARE VS. COMPETITIONThe market is growing but still the concept requires lot of awareness. Such a niche in the market is seeing an increase in the number of brands competing in the fast food fiasco. However having made it’s name among the pioneers in exporting and manufacturing these products, it offers serious competition to new entrants and its existing ones.

Through its stable Prices, Quality, Options, Flavours and its deep product line of Mutton, Beef and Chicken, it has penetrated through the market and has covered all the segments. Its brand awareness is on the rise. All its customers have remained loyal and have not switched over to other brands. Freshmate has not decreased the quality of its food and has positioned its product well not only in the Domestic market but also in the international markets as well.

PROPOSITION

BRAND POSITIONING

CATEGORY DRIVERS

• Value for money and Quality

• Economy

• Taste

• Aroma and Freshness

• Diversified Range and Nutrition

Based on attributes i.e. Freshness, no preservatives, No MSG and certified Halal the briefings are given to consumers in different consumer level activities. Besides the promotional material focuses on these attributes to give a clear proposition of the products in the minds of the current and prospective customers.The fact that Freshmate mate means Authentic Taste and the fact that You don’t need to be a skilled chef! is made clear in the customers.

BRAND HEALTH INDICATORS

ModernPortable

Morally uprightStrong Values

HonestProgressiveHospitable

convenience

COMMUNICATIONS ANALYSIS(DOES COMMUNICATION REINFORCE BRAND VALUES?)

It has persuasive and strong promotional pictures and labels showing the convenience of cooking Pakistani Delicacies in minutes requiring no special skills having prepared by specialists. This itself increases brand awareness and reinforce brand values.

NEW INNOVATIONS PERFORMANCE

Freshmate introduced its Tayyar Mazaydar, Ready to Eat Meals range in Pakistan in the year 2007. (Alhamdolillah) after successful test marketing of one year has moved to offshore markets.

PROMOTION

TOTAL BRAND COMMUNICATION AWARENESS OVERTIME

BRAND SHARE OF TOTAL BRAND COMMUNCATION AWARENESS VS. COMPETITORS

Door to door marketing is done to increase awareness of the products

Mobile Billboards are used to improve on the awareness program of FRESHMATE

Promotional activity is focused to use of BTL (below the line) activities - taste n buy kiosks at different locations; local exhibitions.

Comparing to its competitors National has the advantage of having backing of big company / distribution setup but despite this they have also kept themselves to similar strategy of tasting kiosks

Its total brand communication awareness overtime has to increase. People need to remember its adds making its difference from other brands extensive and viable. Broadcasting its adds on channels such as ATV, PTV,AJ TV, APNA channel,etc which are watched all over Pakistan would be advisable, so that more and more people come into contact with the adds and recall them easily. Their adds should have a family movie theme which is sort of a culture in Pakistan.

ADVERTISING QUALITY AND SPEND

SHARE OF VOICE RATIOS

Not yet taken to have a reasonable impact on the promotions of FRESHMATE

The advertisements should be very well accepted by the target audience.

True representation of the individuals who would need fast cooking foods on day to day basis

Should promote its nutritious value on regular consumption to eliminate any health scares that people may have.

Its adds should clutter breaking and unique

PLACE

RETAIL SHARES BY CHANNELS

AVAILABILITY (DISTRIBUTION QUALITY)

Availability is good in Karachi but as there are lot of flavors so it’s very difficult to carry all SKU’s at all places but still it’s good. Other than Karachi, in other cities Lahore /Islamabad the distribution / placement requires improvement.

The product nature is such that it’s usually sold in A class stores or super stores

DISPLAY QUALITY

Display is an issue in this item as frontal image is important. Big retail stores who have abundant space have given fuller display which helps in sales. Different size of racks are made; Where space is limited, racks are provided to the stores.

FRESHMATE is never out of stock. It has an effective distribution channel. The company delivers the right quantity of product to respective outlets. It the quantity decreases or is about to finish, the company is informed and delivery is made to that specific outlet to replenish the stocks immediately

STOCKING (OUT OF STOCK) IN THE MARKET

PRICE

PERCEIVED VS. ACTUAL PRICE

PRICE POSITIONING

Pricing has been kept as per product categoryMutton category with the highest perceive value has been kept at highest price; Actual price level of mutton is also higher and perceived value is also higherAfter mutton comes chicken; then beef, then rice and then vege/lentilsVege and lentils have been kept at levels lower than their actual value as perceived value of vege/lentils is lowerThe prices are in upper or similar category as compared to competition

•People always on the go •Tourists•Residents of Urban Cities such as Karachi and Lahore•Consumers ready for a change in taste and experiment.

PRICE SEGMENT GROWTH

% OF SALES MADE ON PROMOTION DURING LAST YEAR

Economic Crises has led to a downfall of pocket size and therefore, strategically prices cannot be increased for certain segments. However prices of Chicken and mutton usually affect the prices of the products.

The % of sales made on promotion during last year have been significantly more than expected.

PRICE ELASTICITIES

Since it is a brand for niche market, price elasticity relatively lower. If however FRESHMATE increases its price, people will shift to other less costly products.

Although the variable factor can be the taste, the pricing of FRESHMATE has always shown its effectiveness and thereby proving to adapt to price elasticities.

PACK

PACK TEST DATA OVER TIME

PACK ATTRIBUTES VS. COMPETITORS

Not so well accustomed to different handling problems throughout the nation wide distribution network for the SKUs of the company, however its move towards the international market has initiated brand new distribution channels for the company to adapt to.

It mentions in three languages English, Urdu and Arabic product name, ingredients, safety and heating instructions.Its high quality packaging makes the product very durable meking the product more long lasting than its competitors.It clearly mentions main attributes of No MSG, NO refrigeration and No preservatives.Besides that the pack mentions correctly calculated Nutritional information, serving suggestion, spice and tanginess level, barcode, manufacturing, expiry dates, wt, price, etc.Compared to competition, maximum and complete information has been put on the pack as required by different standard and packaging laws

PRODUCT

PRODUCT BENCHMARK TEST PERFORMANCE OVERTIME

TECHNICAL PRODUCT APPRAISAL VS. COMPETITION

At VQI (visual quality index) tests are done to make sure everything is correct. The product packaging, everything printed on it, etc is correct.

With its Authentic TasteEach dish is prepared in accordance with the recipe of our Food & Nutrition expert, Nasreen. Great care and extensive research at each step of production help maintain the taste and freshness of Freshmate's foods from it’s kitchen to the consumers

DGDSFG