MARKETING MANAGEMENT

PROF. AGHA MAHMOOD ALI

SECTION “A”

GROUP “BRAVO”

FINAL PROJECT REPORT

NAME REFERENCE NUMBER SERIAL NO.

DUAA ZAHRA L1F15BBAM0064 01

NOMAN ASIF L1F16BBAM0014 11
M. HAAD L1F16BBAM0019 14
RAHAT KHAN L1F16BBAM0034 20
MUHAMMAD HAIDER RAZA L1F16BBAM0048 24

TOPIC:
SUMMARY OF PROJECT

ACKNOWLEDGEMENT

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 We would like to express our special thanks of gratitude to our Prof. Agha Mahmood Ali
who gave us the opportunity to think out of the box and gave us the golden opportunity to do
this creative project which helped us in doing a lot of research on Engro Foods and this
helped us to learn the basics of marketing with new trends and with the new fashion of
learning.

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  COMPANY’S PROFILE

Engro Foods Limited (EFL) is a company built from the fabric of Pakistan, it was driven with
a vision to cater to local needs with products conforming to global food safety standards. EFL
was formed in 2005 and within a short span of 10 years it became the 2nd largest dairy company
of Pakistan.

 GOALS AND OBJECTIVES

To create & lead a White Revolution in Pakistan, to provide safe, healthy & affordable nutrition
to Pakistan. To empower Dairy farmers through Dairy Development Programs for inclusive &
sustainable economic growth.
And their objective is to invest in more sustainable supply chains, contributing to the nutrient
security of millions of consumers. Providing the consumers nutritious foods and helping dairy
farmers and their families to maintain vibrant rural communities.

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  PRODUCT PROFILE

We are introducing organic cereals named as “O’Crunch”. This cereal will be all organic
because it is the high time when Engro foods should focus on this concept because in Pakistan
we don’t see a large number of healthy cereals.
Our cereal will be having Chia Seeds, Sesame seeds and Oats. No preservatives and no
additives only organic ingredients. This cereal will be in three flavors which are Peanut Butter,
Honey and Chocolate.

 PRODUCT GOALS AND OBJECTIVES

The main goal for our product is to create awareness about healthy eating and how our busy
people can have easy to have and plus healthy breakfast. And objective is to come up with a
great line of healthy cereal line in future.

 SEGMENTATION

For our product the segmentation will be

 Demographic – both genders, middle class and above classes, every age group
 Geographic - working people, urban area
 Psychographic – educated, cost benefits, value seekers
 Behavioral – benefit seeker, health conscious seekers.

 TARGET MARKET

Our target market is going to be the health-oriented people and those who don’t have enough
time to have a healthy breakfast.

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  POSITIONING

We positioned our cereal as "Don’t Panic Its Organic" cereal rather than just as
"breakfast cereal". It has positioned itself to the "health conscious" market since it has
everything organic in it, no cholesterol or other negative ingredient.

Points of parity the points of parity are; it is cereal, and it has the same box packaging just
like other cereal boxes.
Points of differences it is all organic, no additives, no preservatives, has different offering
catering to different need of different people in terms of age, characteristics and requirements.

 BRAND POSITIONING STATEMENT

The positioning statement which will define our product is organic and it has no preservatives

 SLOGAN

The slogan of O’Crunch is “DON’T PANIC IT’S ORGANIC”.

 CONSUMER BEHAVIOR ANALYSIS IN SPECIFIC

INDUSTRY

In cereal industry the behavior of people is very rigid. In today’s era, people think of cereals
as they are the best thing to have in breakfast or the power pack breakfast. Now people do
have busy lives, now women are more career oriented instead of being at home or being
house wife. So in the morning they want something good and healthy for their family so they
think of cereal as a great option.

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  COMPETITOR’S ANALYSIS

Kellogg’s
Kellogg’s is one of the famous cereal company in Pakistan. The Kellogg Company, doing
business as Kellogg's, is an American multinational food-manufacturing company
headquartered in Battle Creek, Michigan, United States. In Pakistan Kellogg’s is one of the
leading brands giving good quality and

Nestle Pakistan LTD

Nestle is second most famous in Pakistan. Nestlé is a subsidiary of Nestlé S.A., a company based in
Vevey, Switzerland. Today, millions of consumers across Pakistan mirror their emphasis on nutrition, realizing
that food choices impact their health and quality of life.
Cereals like koko crunch and frosties are the most famous.
Fauji Cereal
Fauji cereal is basically a brand of Pakistan. It is a local brand, providing with local flavors
and increasing the cereal market of Pakistan. The company has achieved ISO 9001-2015
Certification by adopting the International Standard Procedures for producing high quality

food products.

 NEW PRODUCT PLANNING AND DEVELOPMENT

As we can clearly see that Fauji cereals is only brand in Pakistan which is making cereals in
Pakistan. So, observing this and demand of people for healthy breakfast made us to think for
something new. The reason we wanted to come up with organic cereal is because we wanted
people to know that having healthy meal is easy and this can be done in Pakistan too.
O’Crunch is a cereal which we thought of which contains the organic seeds and no additives.

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  BRAND DYNAMICS AND FEATURES

The brand features are very unique from the local market because this will be the first ever
Pakistani company which will be making this kind of organic cereal and at reasonable prices.
We are behind the saying “THINK GLOBALLY ACT LOCALLY”

 CUSTOMER VALUE HIERARCHY

CORE BENEFIT
The core benefit for O’Crunch is that this is HEALTHY because it is organic.
BASIC PRODUCT
Our product is a cereal everyone will have in their mind to use that with milk plus it should
be not so soft that it gets soggy instantly.
EXPECTED PRODUCT
While purchasing our product the customers have their mind set about Engro that they
always come up with something hygienic plus quality product. The expectations will be very
high from this product. People would expect the fine ingredients, and the taste.
AUGMENTED PRODUCT
For our product we will be giving small pouch of Olpers milk as a free product to create
value and to penetrate in the market. Because we know that cereal is usually eaten with
POTENTIAL PRODUCT
This encompasses all the opportunities that the product might undergo in the future. Maybe in
future we will come with different flavors or with different seeds.

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  PRODUCT HIERARCHY & SKU

Our product will be coming in three different flavors and three different sizes.
Three flavors will be honey, chocolate and peanut butter. And the sizes will be of 250 gm,
500 gm and 750 gm.
This is how we can target people of different mindsets and of different age group.

 SWOT ANALYSIS
STRENGTHS The strengths our product have is that this will be the first organic cereal in
the market with different flavors.
WEAKNESSES The weakness which our product will have this perception that organic
food is boring so we will be putting great effort to change the mindset.
OPPORTUNITY The opportunity we have that we can come up with different organic
seeds such as Flax seeds, Hemp seeds and of Pumpkin seeds.

THREATS The threats which can be faced by our brand is that maybe Fuji cereal will also
come up with this kind of idea or people will not like the idea of organic cereal.

 PORTER’s 5 FORCE

Competition in the industry for our brand the competition in the market is other
supplements which are used for shakes and are present in the market.

Potential of new entrants into the industry People are now more educated about the
lifestyle of the consumer so they want to come up with the new trends and fashions. New
companies can enter in the market with some other organic market, or granola bars.

Power of suppliers Now the suppliers will have the power to choose which company
they want to sell their products. Because organic seeds are rare to find of good quality.

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Power of customers When there will be many brands selling of organic stuff so customers
will have a command which product to buy or which not to.

Threat of substitute products the substitutes for our product can be the granola bars,
supplements or other cereal available in the market. So, we need to make our positioning so
strong that will help us to take over the market share.

 COMPETITIVE EDGE

The competitive edge our product will have is that this will be the first local brand which will
be all organic.

 PRICING STRATEGY

The pricing strategy which will be the best for our product is PENETRATION PRICING
strategy because our product is something new and our market is not used to of something
fancy in the local market.

 PLACEMENT RECOMMENDATIONS

The placement will be at every local grocery store plus at every big store such as Al Fatah,
metro or Euro store. So we can target more and more customers.

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  PACKAGING DECISION

The packaging will be as shown below.

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  PROMOTIONAL DECISIONS

The promotional strategy of our product is very interesting we will be showing the joint
family system in out TVC, on social media we will do voting against O’Crunch or any other
flavored cereal, on stores we will be giving tasters to the customer (small pouches), and on
radio we will be broadcasting the sound of our TVC. Will also give incentives to retailers.

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