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Marketing Management – Term Project
Marketing Plan: K&N’s: Health and Happiness
Submitted By:
Ali Imran Zubairi (113)
Hafiz Muhammad Usman (88)
Salman Mehmood (102)
Laila Jabbar (74)
Qurat-ul-Ain (112)
Fatima Manzoor (109)
Submission Date: February 27, 2018
Submitted To: Mr. Hassan Raza, Faculty of IAS, University of the Punjab
Acknowledgment
We would like to express our deepest appreciation to all those who provided us the
possibility to complete this report. A special gratitude we would like to give to our
courseinstructor Mr. Hassan Raza, whose efforts made this marketing plan report
possible. We would also like to thank Mr. Sikander, Marketing Executive at
ProPakistani whose contribution in stimulating suggestions helped us to coordinate our
project report. Deep and humble thanks to our Dean, Mam Nasira, who gave us the
opportunity to study this course.
Table of Contents
EXECUTIVE SUMMARY 4
SITUATION ANALYSIS 5
UNDERSTANDING CUSTOMERS 5
COMPETITION 5
COMPANY ANALYSIS 6
BUSINESS 6
PLANS 6
OBJECTIVES 6
VISION 7
MISSION 7
UNDERSTANDING CUSTOMER’S CONTEXT 7
OPPORTUNITIES 8
S.M.A.R.T (IDEAL OBJECTIVES) 9
MARKETING STRATEGY 10
MARKETING COMMUNICATION STRATEGY 11
TARGET MARKETS 13
POSITIONING 13
MARKETING PROGRAM 13
CONTROL MECHANISM 15
CONTINGENCY PLAN 16
Executive Summary
K&N’s, a founding pillar and beacon for Pakistan’s Poultry Industry started in 1964
with a single minded objective of providing better nutrition for health and happiness of
the nation. A key ambition for many brands in the frozen sector should be to continue
steering the consumer mind set towards frozen being ‘acceptable’, in terms of both
quality and health. The Company was the first to establish an integrated broiler
production and processing operation in Pakistan. Some of the competitors are Menu
Foods,Mano Salwa, Dawn Foods, Big Bird, Sufi and PK Foods.
A single minded objective of providing better nutrition for health and happiness of the
nation. The aim behind the initiative was clear as crystal in the mind of owner. It was the
philosophy behind the idea that rooted the whole side business convert into the empire.
The company is working on the portraying the food with nutritional ingredients in a way
that could attract the children and young generation. They are using high-end food
preservation methods to value the customer’s health concerns. K&N’s has the first
mover advantage as well as the benefit of being the only fully vertically integrated
company operating in this space.
Organization’s marketing and financial objectives are to maintain positive, strong
growth each quarter. Market share of K&N’s is almost 70% (on average) in ready to
cookfood category, increasing market share is one objective. To establish the market
growth, working through and with customer satisfaction and to develop the brand and
the productaccording to the customer’s requirement.
K&N’s are already influencing their marketing strategy using the following two
concepts:Product concept and Selling concept
We have suggested a new approachusing marketing communication strategy.
They have decided hostilities students, job oriented men and women and teenagers.
They have managed to position the brand symbolically with their optimistic and minimal
branding. K&N’s marketing program is consisting of 9P’s: Price, Products, Promotion,
Place, Packaging, Positioning, Process and Physical Evidence. Security Cameras to
monitor outlets and smart systems to track orders and delivering vehicles. As
contingency plan we are proposinganother productbranding strategy, conglomerate
strategy.
Situation Analysis
K&N’s, a founding pillar and beacon for Pakistan’s Poultry Industry started in 1964
with a single minded objective of providing better nutrition for health and happiness of
the nation. Building on years of poultry expertise and commitment to food-safety,
K&N’s integrated all poultry production activities under one umbrella to bring you safe
and healthy chicken by managing and controlling all stages of production. This was
planned in 1964 when 80% of the ailing children were suffering from the diseases
caused by protein, vitamins and minerals deficiency. K&Ns was established to
overcome this malnutrition by a college student Khalil Sattar who had a vision to foresee
a need to establish a poultry farm.
Understanding Customers
A key ambition for many brands in the frozen sectorshould be to continue steering the
consumer mind set towards frozen being ‘acceptable’, in terms of both quality and
health. Being such a heavily promotionally driven category probably doesn’thelp
consumer impressions of frozen, as it in a sense devalues it. On a more positive note, the
recent endorsement of ‘frozen’ by various celebrity chefs has been a great way to
improve impressions and consumer belief that it really can be ‘as good and happy as
fresh’, however, manufacturers need to keep re-playing this message. At the moment,
many consumers may rationally respond to say Frozen is as healthy and fresh as fresh,
but do they genuinely believe it?
Demographics
From a relatively small base, the frozen food market is growing by between 20% to 25%
year on year in Pakistan, as lifestyles and demographics change.
There is an almost equal ratio between all age groups of people consuming the frozen
food.
Psychographics
From the very past tradition of having heavy breakfast along with species and flavors
including chicken, has been the preference of Pakistani cuisine.
Majority of the local consumers prefers chicken to meat.
Ready to cookchicken products in a very less time to give the same desi taste that
Pakistani families look for, no frozen food company will find it difficult to sell ready to
cookitems.
Geographics
K&N’s has set boundary less expansion geographic target goals.
Pakistan, Oman, Saudi Arabia, United Arab Emirates, Canada and USA markets are in
the scopefor now.
By leveraging the expansive reach of the marketing and persuasive branding K&N’s
hopes to serve bothdomestic and international customers.
BehaviorFactors
From the customer view point K&N’s is providing healthy food.
It is easy to cookespecially it facilitates the working women because they don’thave
much time to make all those things in home.
This brand provides the hygienic food to its customer that build trust in the customer.
These attributes are increasing the number and letting the users behave in the favor of
brand leading to growth.
Competition
Competitors of K&N’s are:
● Menu Foods
● Mano salwa
● Dawn Foods
● Big Bird
● Sufi
● PK Foods
Pakistan’s small ready-to-cookfood market has welcomed more than 10 new entrants in
the segment in last five years. These brands couldn’t make the brand image as strong as
K&N’s has. Secondly they are not providing that level of customer satisfaction that
K&N’s is providing.
Company Analysis
The Company was the first to establish an integrated broiler production and processing
operation in Pakistan. Currently K&N’s has six broiler growing facilities, each with a
capacity for 250,000 to 300,000 birds. K&N’s uses best-in class equipment supplied by
world-leading equipment manufacturers from Europe and USA.
In 2018 Khalil and Adil Sattar are considering growth opportunities for K&N's, their
family business that is the market leader for processed chicken and value-added chicken
products in Pakistan. This position has been built through a strategy of vertical
integration, productinnovation, and branding. K&N's has also developed its own chain
of retail "Chicken Stores" to promote their products. Growthopportunities include
contained expansion in Pakistan, exporting to nearby markets, and/or developing a
global Halal food brand.
Business
The main idea behind the poultry and frozen food business was nothing more than an
experiment had it not been for a conversation Khalil had with his cousin, who had
visited Australia in 1964 and mentioned to Khalil that he had seen chicken farming as a
highly profitable business in Australia. Khalil, then just 23, was intrigued by the idea
and increased his investment in his chicken farm and grew it to have 1,000 birds within
a few months.
Plans
Seeking to export Pakistani processedfood acrossthe world, Sattar thinks Pakistan’s
market has yet to emerge onto the world map, which he believes will only happen after
more than one company is exporting. This is where he does not hesitate to share K&N’s
best practices with the local poultry industry.
Objectives
A single minded objective of providing better nutrition for health and happiness of the
nation. The aim behind the initiative was clear as crystal in the mind of owner. It was the
philosophy behind the idea that rooted the whole side business convert into the empire.
The owner plans to porch a frozen food business for the international market with the
highest possible quality and standard’s benchmarks that the world recognizes Pakistan’s
grown meat is the best option to consume.
Vision
Our ethos drives us to provide you Safe and Healthy chicken products.
Mission
At K&N's, our ethos of doing the right thing is deeply ingrained in us, and provides
impetus to all our company practices.
Goals
■ To focusing more and more on the ready-to-cookproducts for the ease of
customers.
■ Special focus on the hygiene factor.
■ To be known as a brand that provide value productto its customer.
■ The market starts with the customers and ends with the customers. This is the
main reason behind every goal they are having for their market share and market
growth.
Understanding Customer’s Context
The company is working on the portraying the food with nutritional ingredients in a way
that could attract the children and young generation. They are using high-end food
preservation methods to value the customer’s health concerns.
Predominant Purchase
The main element in the purchase of food items and grocery is the health that is
presented in the packaging.
K&N’s are leading in healthy frozen food.
Their main productis health and taste.
K&N’s provides the hygienic food to its customer that builds trust in the customer.
Moreover the taste of K&N’s food is superior then others. In the developing world of
conscientious decision making every human being is geared towards spending happy
life. A happy life is one with good health. The decision making process in buying frozen
food involves a criterion based on these certain points related to time constraints and
health constraints both.
Diffusion ProcessofInnovation
Innovators – Followers – Early Majority – Late Majority – Laggards
Being first mover and thinking out of the box was the drill K&N’s used to innovate into
the ready-to-cook food industry. Innovators first entered the market; foodies were
attracted by this new item. (2%-5%)
Followers than entered market, the productwas at boomon the productlife cycle. There
were people using it and thinking that their decision about ready-to-cookfood is actually
risky and people with ease to cookon their list of elicited priorities. (15%-18%)
After followers there were those influenced by the brand and it’s marketing strategy.
This early majority and late majority covered approximately 60% of the consumers.
Laggards come in when people are over using a product. It’s a food item and it’s at
constant rate of growth in sales, hence there are no laggards.
Opportunities
K&N’s has the first mover advantage as well as the benefit of being the only fully
vertically integrated company operating in this space. Today, as the largest vertically
integrated poultry farm, with a force of 6,000 employees, over 70 company outlets and
distributing to over 1,000 retail outlets across the country, K&N’s Foods stands as the
market leader in the market once thought impossible to even exist.
Looking to the next stage of growth, K&N’s scopehas been developing and growing
global, seeking to export Pakistani grown chicken and frozen food across the world.
Sattar thinks Pakistan’s market has got the ebullience to shine on the globe as a frozen
food supplier market.
Issues that stray Opportunities
1. Not more than one company is exporting in frozen food category.
2. Companies that are even approaching the international market and not taking their
job seriously or either just not spending a budget on the R&D of international
market penetration.
3. The importers want to know that what is the government’s stance on controlling
viral and contagious diseases. What are the notifiable diseases? Unfortunately
there are none other than just bird flu.
Marketing Objectives
1. Maintain positive, strong growth each quarter
2. Market share of K&N’s is almost 70% (on average) in ready to cookfood
category, increasing market share is one objective.
3. To establish the market growth working through and with customer satisfaction.
4. Develop the market image of the brand and the productaccording to the
customer’s requirement.
Financial Objectives
1. They are looking working on raising the budget of frozen food to 50% from 30%
for a family.
SocialService to Community
● Organization believes that forecasting Pakistan’s market as a developed exporter
of frozen food will let Pakistan appear dominant onto the world map, which he
believes will only happen after more than one company is exporting. This is
where he does not hesitate to share K&N’s vision and bestpractices with the local
poultry industry.
● It hires the largest team of veterinarians, nutritionist and highly experienced
technical staff.
● Seminars are organized in all major cities and rural poultry centers where local
and foreign experts are invited to address poultry farmers on latest poultry
developments
● Free of charge vaccination and Technical training programs for poultry farmers
are regularly organized and training is also imparted for carrying out costfeed
formulations are also provided to farmers.
S.M.A.R.T (Ideal Objectives)
S: Specific Objectives
K&N’s has a strict plan to follow in terms of target orientation. Each of products is
based on the rule that it should be healthy to eat and according to the taste of consumers.
M: Measurable Objectives
Pakistan Bureau of Statistics’ 2016 Household Integrated Economic Survey, Pakistanis
spent approximately $1.3 billion last year on a category called “readymade food”, which
includes all types of processedfood. Theyare looking towards raising the budget cap of
frozen food to 50% from 30%.
A: Attainable Objectives
To be known as a brand that provide value productto its customer.
R: Realistic Objectives
Special Focus onhygienic and healthy chicken items.
T: Time bound Objectives
Organization believes that forecasting 10 years of Pakistan’s readymade food items
market, we should be huge exporter of frozen food and we should appear dominant on
the world map.
Marketing Strategy
K&N’s is using the marketing conceptas its current marketing technique stating that the
organization should be aware of the needs and wants of the target markets and should be
delivering the desired satisfaction better than the competitors do in order to accomplish
the organizational goals.
K&N’s are already influencing their marketing strategy using the following two
concepts:
Product concept
Selling concept
We have suggested a new approachusing marketing communication strategy.
Product Concept
This conceptsays that “consumerwill favor products that offer the most quality
performance and features and that the organization should therefore devote its energy to
making continuous productimprovements.”
K&N’s from the very beginning has focused on providing better nutrition for the health
and happiness of the nation and we will be keeping the words as they were before.
Quality is our very first priority that will make us build strong and profitable customer
relationships. We will be managing and controlling all stages of productionof the
“jhatpat chicken paratha” as done for the rest of K&N’s products in order to ensure
100% safe and healthy production of our product.
Selling Concept
This conceptstates that “consumers will not buy enough of the firm’s products unless
it undertakes a large scale selling and promoting effort.”
We are launching an unsought consumer productas none of our competitors or the rest
has launched a productsimilar to ours.
To make our valuable consumers aware of our newly launched productwe have decided
to use this concept. We will create awareness among our customers on a large scale
utilizing all he bestpromotional means available. Television and radio ads are at the first
priority, billboards at the best locations or different areas, newspaper ads and doorto
doorawareness programs are at the second. Other than these promotional strategies we
will ensure the availability of our productin access at all K&N’s outlets and the
departmental stores and bakeries.
Marketing Communication Strategy
This conceptsays that “consumershould be provided with awareness using
communication tools. The step by step arrangement of making customer aware of the
features and competitive edge of your productis listed below.
Communication Process:
Sender: K&N’s
Encoder: The advertising agency and the Creative department
Message:that now ready to cookproper meal is available for the hostilities and the
working women
Channel of message:through brochures, TV advertisements, newspaper
Decoding:this is done by the consumers, customers
Receiver:the targeted customers are the receivers.
Response:if our productsatisfies the needs and wants of our customer then in response
they will approachtowards our product
Feedback:as a feedback the customer can go to any outlet of K&N’s. They can even
mail there feedback to the customer relation manager through our website
Developing Effective MarketCommunication Strategy
Determining the Communication Objectives
We go through the six buyer-readiness stages. K&N’s objective is to give knowledge
about their new productas the consumers are already aware of the brand. K&N’s is
giving them knowledge that how their needs and K&N’s productqualities are connected
so that this is a part of their Unique Selling Perspective (USP) how the productis
differentiating in the market by providing 100% safe chicken items and why to prefer
K&N’s.
Designing a Marketing Strategy
Using the marketing communication flow we have designed the strategy that converts
the need of the people for the productinto the actions of purchasing it.
Product Strategy
We are selecting market penetration strategy to increase customer base. Brand’s online
existence makes a huge impact on the performance in the market at world level. We are
delivering same productwith unique offering of subscribing to our YouTube channel,
watching recipes videos and earning points to get discounted products.
Product Branding using CBBE
We will be using the emotional route for influencing the need to purchase the product.
There is a smart phone app for K&N’s recipes named as “Smart Cooking App”. We
have proposedto add a video feature to let consumers watch the recipes.
Choosing the media:
Personal communication channels;We will be selecting personal means of promotion
and communication. We will use social media like the Facebook, YouTube, instagram,
cooking magazines.
Collecting Feedback
We will use sales promotion and public relations strategies to talk about our brand and
get feedback about the promotion of the product.
Target Markets
K&N’s is by far the largest player in the processed poultry market, commanding an
estimated 80% in market share.
1. The company is targeting different age groups as well as different income groups.
2. Their prices are normal so even a middle class person can afford it.
3. They are targeting elite upper middle and middle class. On the age basis, they are
targeting children as well as the young people.
4. They have decided hostilities students, job oriented men and women and
teenagers.
5. These are the segments that can be called the time savers and our productwill
make them have a refreshing breakfast without time consumption.
Positioning
K&N's has remained true to its reason to exist of providing better nutrition through
poultry for Health and Happiness of people and it is now a favorite chicken brand of
millions of people.
Formed by health oriented for health conscious people, K&N’s management is able to
position the brand with the vast experience and owner’s personal passionfor to the
nutritional need of children and to youngsters, those who have concerns that are
creative, innovative and constructive. They have managed to position the brand
symbolically with their optimistic and minimal branding.
Marketing Program
K&N’s marketing program is consisting of 9P’s.
Price
K&N’s has a defined price method of labeling items on the basis of packaging size.
They have a price segregation based on small, large and family packs.
Products
ConsumerProducts
Whole Chicken, Designer Cuts & Premium Boneless Meat
Breaded Selection
Kabab Temptations
Deline®
Chunks®
Samosa
Bakistry®
Stok®
Industrial Products
Parent Stock
Day-Old Chicks
Hatching-Eggs
Poultry Feed
Promotion
They have certain promotion campaigns running on-rotation, offers, discounts and
promotions are set-up keeping the competitors in mind.
Place
K&N’s has a multiple sales counter approach. They have shelfs in superstores;they have
a large chain of 55 factory outlets spread across the country and world. They also have a
highly formalized distribution channel that fulfills the orders from small retail shops.
Packaging
The items are packed on the basis of packaging size. They have a segregation of small,
large and family packs.
Positioning
K&N’s management is able to position the brand with their vast experience as first
mover and owner’s personal passionfor the nutritional needs of children, youngsters and
those who have concerns that are health oriented, innovative and constructive. They
have managed to position the brand symbolically with there optimistic and minimal
branding.
People
K&N’s is mainly focusing on the working women and the hostilities. The hostilities
require something that is ready to serve in minutes that are less time consuming but still
full of taste and nutritious as they miss the taste of homemade food. The working
women cannot get time to prepare meals like chicken paratha that is very time
consuming if completely prepared at home. So their productprovides them the solution
to their problems
Process
K&N’s established a new plant in Raiwind Manga, a state-of-the-art plant, and they got
German and Dutch consultants to build that factory because they knew that challenging
goals are what that keeps workforce motivated, they wanted to export from Pakistan
factory so they wanted the process to be of international standards.
PhysicalEvidence
Company has made itself approachable by existence in relatively bigger size. Being first
mover in the industry it could make this positioning strategy tangible through any
number of marketing tools i-e place, people, equipment, communication material,
symbols and price.
Control Mechanism
Security Cameras to monitor outlets and smart systems to track orders and delivering
vehicles.
Sales Force
A key to success is the close ties organization’s sales force forms with retailers. For
instance a 150-person team that serves the retail agent works to improve boththe
products that go to the stores and the process bywhich they get there. The management
of customer relationships by providing the UPB (Unique Perceived Benefit) of ready-to-
cookfood at your doorstep is also performed by the sales force.
Fraud & Leakage
K&N’s organization culture is strong, where values are closely held and widely shared.
Organizations marketing have never shown intentions to mislead or exaggerate product
size, performance claims, or the “retail price”.
Contingency Plan
As contingency plan we are proposinganother productbranding strategy, conglomerate
strategy. We are encouraging buying behavior by providing free recipe magazine copies
every month when customer goes out for doing groceries on a purchase of Rs500 worth
of our products. Wealso have a proposalto create a publishing line for monthly
magazine of K&N’s having promotions and discount coupons.

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K&N's Marketing Plan - Institute of Administrative Sciences, Punjab U, Lahore

  • 1. Marketing Management – Term Project Marketing Plan: K&N’s: Health and Happiness Submitted By: Ali Imran Zubairi (113) Hafiz Muhammad Usman (88) Salman Mehmood (102) Laila Jabbar (74) Qurat-ul-Ain (112) Fatima Manzoor (109) Submission Date: February 27, 2018 Submitted To: Mr. Hassan Raza, Faculty of IAS, University of the Punjab
  • 2. Acknowledgment We would like to express our deepest appreciation to all those who provided us the possibility to complete this report. A special gratitude we would like to give to our courseinstructor Mr. Hassan Raza, whose efforts made this marketing plan report possible. We would also like to thank Mr. Sikander, Marketing Executive at ProPakistani whose contribution in stimulating suggestions helped us to coordinate our project report. Deep and humble thanks to our Dean, Mam Nasira, who gave us the opportunity to study this course.
  • 3. Table of Contents EXECUTIVE SUMMARY 4 SITUATION ANALYSIS 5 UNDERSTANDING CUSTOMERS 5 COMPETITION 5 COMPANY ANALYSIS 6 BUSINESS 6 PLANS 6 OBJECTIVES 6 VISION 7 MISSION 7 UNDERSTANDING CUSTOMER’S CONTEXT 7 OPPORTUNITIES 8 S.M.A.R.T (IDEAL OBJECTIVES) 9 MARKETING STRATEGY 10 MARKETING COMMUNICATION STRATEGY 11 TARGET MARKETS 13 POSITIONING 13 MARKETING PROGRAM 13 CONTROL MECHANISM 15 CONTINGENCY PLAN 16
  • 4. Executive Summary K&N’s, a founding pillar and beacon for Pakistan’s Poultry Industry started in 1964 with a single minded objective of providing better nutrition for health and happiness of the nation. A key ambition for many brands in the frozen sector should be to continue steering the consumer mind set towards frozen being ‘acceptable’, in terms of both quality and health. The Company was the first to establish an integrated broiler production and processing operation in Pakistan. Some of the competitors are Menu Foods,Mano Salwa, Dawn Foods, Big Bird, Sufi and PK Foods. A single minded objective of providing better nutrition for health and happiness of the nation. The aim behind the initiative was clear as crystal in the mind of owner. It was the philosophy behind the idea that rooted the whole side business convert into the empire. The company is working on the portraying the food with nutritional ingredients in a way that could attract the children and young generation. They are using high-end food preservation methods to value the customer’s health concerns. K&N’s has the first mover advantage as well as the benefit of being the only fully vertically integrated company operating in this space. Organization’s marketing and financial objectives are to maintain positive, strong growth each quarter. Market share of K&N’s is almost 70% (on average) in ready to cookfood category, increasing market share is one objective. To establish the market growth, working through and with customer satisfaction and to develop the brand and the productaccording to the customer’s requirement. K&N’s are already influencing their marketing strategy using the following two concepts:Product concept and Selling concept We have suggested a new approachusing marketing communication strategy. They have decided hostilities students, job oriented men and women and teenagers. They have managed to position the brand symbolically with their optimistic and minimal branding. K&N’s marketing program is consisting of 9P’s: Price, Products, Promotion, Place, Packaging, Positioning, Process and Physical Evidence. Security Cameras to monitor outlets and smart systems to track orders and delivering vehicles. As contingency plan we are proposinganother productbranding strategy, conglomerate strategy.
  • 5. Situation Analysis K&N’s, a founding pillar and beacon for Pakistan’s Poultry Industry started in 1964 with a single minded objective of providing better nutrition for health and happiness of the nation. Building on years of poultry expertise and commitment to food-safety, K&N’s integrated all poultry production activities under one umbrella to bring you safe and healthy chicken by managing and controlling all stages of production. This was planned in 1964 when 80% of the ailing children were suffering from the diseases caused by protein, vitamins and minerals deficiency. K&Ns was established to overcome this malnutrition by a college student Khalil Sattar who had a vision to foresee a need to establish a poultry farm. Understanding Customers A key ambition for many brands in the frozen sectorshould be to continue steering the consumer mind set towards frozen being ‘acceptable’, in terms of both quality and health. Being such a heavily promotionally driven category probably doesn’thelp consumer impressions of frozen, as it in a sense devalues it. On a more positive note, the recent endorsement of ‘frozen’ by various celebrity chefs has been a great way to improve impressions and consumer belief that it really can be ‘as good and happy as fresh’, however, manufacturers need to keep re-playing this message. At the moment, many consumers may rationally respond to say Frozen is as healthy and fresh as fresh, but do they genuinely believe it? Demographics From a relatively small base, the frozen food market is growing by between 20% to 25% year on year in Pakistan, as lifestyles and demographics change. There is an almost equal ratio between all age groups of people consuming the frozen food. Psychographics From the very past tradition of having heavy breakfast along with species and flavors including chicken, has been the preference of Pakistani cuisine. Majority of the local consumers prefers chicken to meat. Ready to cookchicken products in a very less time to give the same desi taste that Pakistani families look for, no frozen food company will find it difficult to sell ready to cookitems. Geographics K&N’s has set boundary less expansion geographic target goals.
  • 6. Pakistan, Oman, Saudi Arabia, United Arab Emirates, Canada and USA markets are in the scopefor now. By leveraging the expansive reach of the marketing and persuasive branding K&N’s hopes to serve bothdomestic and international customers. BehaviorFactors From the customer view point K&N’s is providing healthy food. It is easy to cookespecially it facilitates the working women because they don’thave much time to make all those things in home. This brand provides the hygienic food to its customer that build trust in the customer. These attributes are increasing the number and letting the users behave in the favor of brand leading to growth. Competition Competitors of K&N’s are: ● Menu Foods ● Mano salwa ● Dawn Foods ● Big Bird ● Sufi ● PK Foods Pakistan’s small ready-to-cookfood market has welcomed more than 10 new entrants in the segment in last five years. These brands couldn’t make the brand image as strong as K&N’s has. Secondly they are not providing that level of customer satisfaction that K&N’s is providing. Company Analysis The Company was the first to establish an integrated broiler production and processing operation in Pakistan. Currently K&N’s has six broiler growing facilities, each with a capacity for 250,000 to 300,000 birds. K&N’s uses best-in class equipment supplied by world-leading equipment manufacturers from Europe and USA. In 2018 Khalil and Adil Sattar are considering growth opportunities for K&N's, their family business that is the market leader for processed chicken and value-added chicken products in Pakistan. This position has been built through a strategy of vertical integration, productinnovation, and branding. K&N's has also developed its own chain of retail "Chicken Stores" to promote their products. Growthopportunities include
  • 7. contained expansion in Pakistan, exporting to nearby markets, and/or developing a global Halal food brand. Business The main idea behind the poultry and frozen food business was nothing more than an experiment had it not been for a conversation Khalil had with his cousin, who had visited Australia in 1964 and mentioned to Khalil that he had seen chicken farming as a highly profitable business in Australia. Khalil, then just 23, was intrigued by the idea and increased his investment in his chicken farm and grew it to have 1,000 birds within a few months. Plans Seeking to export Pakistani processedfood acrossthe world, Sattar thinks Pakistan’s market has yet to emerge onto the world map, which he believes will only happen after more than one company is exporting. This is where he does not hesitate to share K&N’s best practices with the local poultry industry. Objectives A single minded objective of providing better nutrition for health and happiness of the nation. The aim behind the initiative was clear as crystal in the mind of owner. It was the philosophy behind the idea that rooted the whole side business convert into the empire. The owner plans to porch a frozen food business for the international market with the highest possible quality and standard’s benchmarks that the world recognizes Pakistan’s grown meat is the best option to consume. Vision Our ethos drives us to provide you Safe and Healthy chicken products. Mission At K&N's, our ethos of doing the right thing is deeply ingrained in us, and provides impetus to all our company practices. Goals
  • 8. ■ To focusing more and more on the ready-to-cookproducts for the ease of customers. ■ Special focus on the hygiene factor. ■ To be known as a brand that provide value productto its customer. ■ The market starts with the customers and ends with the customers. This is the main reason behind every goal they are having for their market share and market growth. Understanding Customer’s Context The company is working on the portraying the food with nutritional ingredients in a way that could attract the children and young generation. They are using high-end food preservation methods to value the customer’s health concerns. Predominant Purchase The main element in the purchase of food items and grocery is the health that is presented in the packaging. K&N’s are leading in healthy frozen food. Their main productis health and taste. K&N’s provides the hygienic food to its customer that builds trust in the customer. Moreover the taste of K&N’s food is superior then others. In the developing world of conscientious decision making every human being is geared towards spending happy life. A happy life is one with good health. The decision making process in buying frozen food involves a criterion based on these certain points related to time constraints and health constraints both. Diffusion ProcessofInnovation Innovators – Followers – Early Majority – Late Majority – Laggards Being first mover and thinking out of the box was the drill K&N’s used to innovate into the ready-to-cook food industry. Innovators first entered the market; foodies were attracted by this new item. (2%-5%) Followers than entered market, the productwas at boomon the productlife cycle. There were people using it and thinking that their decision about ready-to-cookfood is actually risky and people with ease to cookon their list of elicited priorities. (15%-18%)
  • 9. After followers there were those influenced by the brand and it’s marketing strategy. This early majority and late majority covered approximately 60% of the consumers. Laggards come in when people are over using a product. It’s a food item and it’s at constant rate of growth in sales, hence there are no laggards. Opportunities K&N’s has the first mover advantage as well as the benefit of being the only fully vertically integrated company operating in this space. Today, as the largest vertically integrated poultry farm, with a force of 6,000 employees, over 70 company outlets and distributing to over 1,000 retail outlets across the country, K&N’s Foods stands as the market leader in the market once thought impossible to even exist. Looking to the next stage of growth, K&N’s scopehas been developing and growing global, seeking to export Pakistani grown chicken and frozen food across the world. Sattar thinks Pakistan’s market has got the ebullience to shine on the globe as a frozen food supplier market. Issues that stray Opportunities 1. Not more than one company is exporting in frozen food category. 2. Companies that are even approaching the international market and not taking their job seriously or either just not spending a budget on the R&D of international market penetration. 3. The importers want to know that what is the government’s stance on controlling viral and contagious diseases. What are the notifiable diseases? Unfortunately there are none other than just bird flu. Marketing Objectives 1. Maintain positive, strong growth each quarter 2. Market share of K&N’s is almost 70% (on average) in ready to cookfood category, increasing market share is one objective. 3. To establish the market growth working through and with customer satisfaction. 4. Develop the market image of the brand and the productaccording to the customer’s requirement. Financial Objectives
  • 10. 1. They are looking working on raising the budget of frozen food to 50% from 30% for a family. SocialService to Community ● Organization believes that forecasting Pakistan’s market as a developed exporter of frozen food will let Pakistan appear dominant onto the world map, which he believes will only happen after more than one company is exporting. This is where he does not hesitate to share K&N’s vision and bestpractices with the local poultry industry. ● It hires the largest team of veterinarians, nutritionist and highly experienced technical staff. ● Seminars are organized in all major cities and rural poultry centers where local and foreign experts are invited to address poultry farmers on latest poultry developments ● Free of charge vaccination and Technical training programs for poultry farmers are regularly organized and training is also imparted for carrying out costfeed formulations are also provided to farmers. S.M.A.R.T (Ideal Objectives) S: Specific Objectives K&N’s has a strict plan to follow in terms of target orientation. Each of products is based on the rule that it should be healthy to eat and according to the taste of consumers. M: Measurable Objectives Pakistan Bureau of Statistics’ 2016 Household Integrated Economic Survey, Pakistanis spent approximately $1.3 billion last year on a category called “readymade food”, which includes all types of processedfood. Theyare looking towards raising the budget cap of frozen food to 50% from 30%. A: Attainable Objectives To be known as a brand that provide value productto its customer. R: Realistic Objectives Special Focus onhygienic and healthy chicken items. T: Time bound Objectives
  • 11. Organization believes that forecasting 10 years of Pakistan’s readymade food items market, we should be huge exporter of frozen food and we should appear dominant on the world map. Marketing Strategy K&N’s is using the marketing conceptas its current marketing technique stating that the organization should be aware of the needs and wants of the target markets and should be delivering the desired satisfaction better than the competitors do in order to accomplish the organizational goals. K&N’s are already influencing their marketing strategy using the following two concepts: Product concept Selling concept We have suggested a new approachusing marketing communication strategy. Product Concept This conceptsays that “consumerwill favor products that offer the most quality performance and features and that the organization should therefore devote its energy to making continuous productimprovements.” K&N’s from the very beginning has focused on providing better nutrition for the health and happiness of the nation and we will be keeping the words as they were before. Quality is our very first priority that will make us build strong and profitable customer relationships. We will be managing and controlling all stages of productionof the “jhatpat chicken paratha” as done for the rest of K&N’s products in order to ensure 100% safe and healthy production of our product. Selling Concept This conceptstates that “consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promoting effort.” We are launching an unsought consumer productas none of our competitors or the rest has launched a productsimilar to ours. To make our valuable consumers aware of our newly launched productwe have decided to use this concept. We will create awareness among our customers on a large scale utilizing all he bestpromotional means available. Television and radio ads are at the first priority, billboards at the best locations or different areas, newspaper ads and doorto doorawareness programs are at the second. Other than these promotional strategies we
  • 12. will ensure the availability of our productin access at all K&N’s outlets and the departmental stores and bakeries. Marketing Communication Strategy This conceptsays that “consumershould be provided with awareness using communication tools. The step by step arrangement of making customer aware of the features and competitive edge of your productis listed below. Communication Process: Sender: K&N’s Encoder: The advertising agency and the Creative department Message:that now ready to cookproper meal is available for the hostilities and the working women Channel of message:through brochures, TV advertisements, newspaper Decoding:this is done by the consumers, customers Receiver:the targeted customers are the receivers. Response:if our productsatisfies the needs and wants of our customer then in response they will approachtowards our product Feedback:as a feedback the customer can go to any outlet of K&N’s. They can even mail there feedback to the customer relation manager through our website Developing Effective MarketCommunication Strategy Determining the Communication Objectives We go through the six buyer-readiness stages. K&N’s objective is to give knowledge about their new productas the consumers are already aware of the brand. K&N’s is giving them knowledge that how their needs and K&N’s productqualities are connected so that this is a part of their Unique Selling Perspective (USP) how the productis differentiating in the market by providing 100% safe chicken items and why to prefer K&N’s. Designing a Marketing Strategy Using the marketing communication flow we have designed the strategy that converts the need of the people for the productinto the actions of purchasing it. Product Strategy We are selecting market penetration strategy to increase customer base. Brand’s online existence makes a huge impact on the performance in the market at world level. We are
  • 13. delivering same productwith unique offering of subscribing to our YouTube channel, watching recipes videos and earning points to get discounted products. Product Branding using CBBE We will be using the emotional route for influencing the need to purchase the product. There is a smart phone app for K&N’s recipes named as “Smart Cooking App”. We have proposedto add a video feature to let consumers watch the recipes. Choosing the media: Personal communication channels;We will be selecting personal means of promotion and communication. We will use social media like the Facebook, YouTube, instagram, cooking magazines. Collecting Feedback We will use sales promotion and public relations strategies to talk about our brand and get feedback about the promotion of the product. Target Markets K&N’s is by far the largest player in the processed poultry market, commanding an estimated 80% in market share. 1. The company is targeting different age groups as well as different income groups. 2. Their prices are normal so even a middle class person can afford it. 3. They are targeting elite upper middle and middle class. On the age basis, they are targeting children as well as the young people. 4. They have decided hostilities students, job oriented men and women and teenagers. 5. These are the segments that can be called the time savers and our productwill make them have a refreshing breakfast without time consumption. Positioning K&N's has remained true to its reason to exist of providing better nutrition through poultry for Health and Happiness of people and it is now a favorite chicken brand of millions of people. Formed by health oriented for health conscious people, K&N’s management is able to position the brand with the vast experience and owner’s personal passionfor to the nutritional need of children and to youngsters, those who have concerns that are creative, innovative and constructive. They have managed to position the brand symbolically with their optimistic and minimal branding.
  • 14. Marketing Program K&N’s marketing program is consisting of 9P’s. Price K&N’s has a defined price method of labeling items on the basis of packaging size. They have a price segregation based on small, large and family packs. Products ConsumerProducts Whole Chicken, Designer Cuts & Premium Boneless Meat Breaded Selection Kabab Temptations Deline® Chunks® Samosa Bakistry® Stok® Industrial Products Parent Stock Day-Old Chicks Hatching-Eggs Poultry Feed Promotion They have certain promotion campaigns running on-rotation, offers, discounts and promotions are set-up keeping the competitors in mind. Place K&N’s has a multiple sales counter approach. They have shelfs in superstores;they have a large chain of 55 factory outlets spread across the country and world. They also have a highly formalized distribution channel that fulfills the orders from small retail shops. Packaging The items are packed on the basis of packaging size. They have a segregation of small, large and family packs. Positioning
  • 15. K&N’s management is able to position the brand with their vast experience as first mover and owner’s personal passionfor the nutritional needs of children, youngsters and those who have concerns that are health oriented, innovative and constructive. They have managed to position the brand symbolically with there optimistic and minimal branding. People K&N’s is mainly focusing on the working women and the hostilities. The hostilities require something that is ready to serve in minutes that are less time consuming but still full of taste and nutritious as they miss the taste of homemade food. The working women cannot get time to prepare meals like chicken paratha that is very time consuming if completely prepared at home. So their productprovides them the solution to their problems Process K&N’s established a new plant in Raiwind Manga, a state-of-the-art plant, and they got German and Dutch consultants to build that factory because they knew that challenging goals are what that keeps workforce motivated, they wanted to export from Pakistan factory so they wanted the process to be of international standards. PhysicalEvidence Company has made itself approachable by existence in relatively bigger size. Being first mover in the industry it could make this positioning strategy tangible through any number of marketing tools i-e place, people, equipment, communication material, symbols and price. Control Mechanism Security Cameras to monitor outlets and smart systems to track orders and delivering vehicles. Sales Force A key to success is the close ties organization’s sales force forms with retailers. For instance a 150-person team that serves the retail agent works to improve boththe products that go to the stores and the process bywhich they get there. The management of customer relationships by providing the UPB (Unique Perceived Benefit) of ready-to- cookfood at your doorstep is also performed by the sales force.
  • 16. Fraud & Leakage K&N’s organization culture is strong, where values are closely held and widely shared. Organizations marketing have never shown intentions to mislead or exaggerate product size, performance claims, or the “retail price”. Contingency Plan As contingency plan we are proposinganother productbranding strategy, conglomerate strategy. We are encouraging buying behavior by providing free recipe magazine copies every month when customer goes out for doing groceries on a purchase of Rs500 worth of our products. Wealso have a proposalto create a publishing line for monthly magazine of K&N’s having promotions and discount coupons.