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Hilal Report
Hilal Report
Hilal Report
INTRODUCTION
(ZARA)
COMPANY PROFILE
Hilal is the largest manufacturer of candies and bubbles in Pakistan.
Hilal has been synonymous with excellent quality confectionery products for the
past fifty years. Over the last half century, the company has diversified its
product range, with a variety of popular new confectioneries for consumers all
over Pakistan to enjoy. Hilal Confectionery is a market pioneer and leader with
their classic range of candies and bubble gums - now newer, improved, and
innovative products like chocolates, wafers and powdered drinks have also had a
substantial impact on the marketplace. The extensive Hilal portfolio includes, but
is not limited to, such recognizable products such as Amras Candy, Chooran
Chatni, Khopra, Pan Pasand and Ding Dong at one end, to Milker Bar Bar, Line
Up, and Sun Sip at the other end.
are
the
best
examples
of
Hilals
In the year 2004 Hilal started powder business under the brand name of
SUNSIP; mega launches were THANDA ORANGE, LIMOPANI and BODY
CHARGER , LIMO PANI was a superb success.
The Company believes that success requires the highest
standards of corporate behavior towards their employees,
consumers and the societies of the world in which we live.
This is HILALs road to sustainable, profitable growth for
their business and long-term value creation for companys
shareholders and employees.
Hilal has a portfolio of brands that are popular across the
globe; its major global customers are Afghanistan, Congo,
Bangladesh, Ivory coast, Jordan, Lebanon, Maldives, New Zealand, Saudi
Arabia, South Africa, Sri Lanka and United Kingdom.
HILALS MISSION
Hilal confectionary (Pvt) Ltd is the largest manufacturer of candies and bubbles in
Pakistan, their mission statement is:
Hilal Confectionery (Pvt) Ltd has always given priority to consumer preferences
in the market, appealing to different market segments inclusive of all
demographic segments. Given the companys focus on high quality, food safety,
nutritional value, and consumer appeal, Hilal has achieved the title of market
leader in the Pakistani confectionery market.
MARKETING
ENVIORNMENT OF THE
COMPANY
(ZARA)
ANALYSIS
OF
MICRO
ENVIRONMENT
COMPANY
Hilal has very centralized decision making. There is no as such innovation in
marketing. They use third agency for marketing but the final decision rests with
the Managing Director (MD). There are two departments under MD:
Sales
Marketing
Their marketing has moved Limopani positioning from a mere power drink to a
refreshing drink for all occasions, emphasizing on a particular benefit of
KABHEE BHI KAHIN BHI
There are 450 people working in sales department under GM sales. They have
regional controllers, town controllers to promote their products. Limopani is
available all over Pakistan in both urban and sub-urban areas. They also have
finance and administration department.
MARKETING INTERMEDIARIES
Distribution firms: They have their distribution firms to stock, invest and move
goods from factories to ware houses.
Marketing service agencies: They use third agency to promote and target their
product to their markets and they are delivering the best of quality and service.
CUSTOMERS
Their customer market is the consumer market which consists of households and
individuals who buy goods and services for personal consumption.
ANALYSIS
OF
MACRO
ENVIRONMENT
Hilal Confectionery Ltd operates in a large macro environment of forces that
shape the opportunities and pose threats to the company. These forces are
examined below to show how they affect its marketing plan.
DEMOGRAPHIC FORCES
VARIABLE
TYPICAL BREAKDOWNS
Density
Age
6 to 45 and above
Gender
Income
Occupation
All
ECONOMIC FORCES
Hilal has positioned Limopani as a premium brand catering to all market
segments since majority of population of Pakistan are white collar people who
like to maintain a standard in low income. Consumers today have become very
price conscious. Therefore, Hilal keeps Limopani prices at a minimum, charging
very little brand premium in their bid to remain competitive and maintain market
share. Hilal prefers to price its products in such a way that all targeted
consumers are able to buy it easily.
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CULTURAL FORCES
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ANALYSIS
OF
MARKET
SEGMENTS
Market segmentation refers to putting together people with similar needs in
distinct groups of buyers on the basis of needs, characteristics or behavior that
might require separate products or product mixes.
SEGMENTATION FOCUS
HILAL has used strategies for Sun Sip Limopani, which was best suited. They
did not have enough resources to attack TANG upfront. They focused on the
segments which were ignored by tang. Since TANG was positioned as a
premium brand, there was no credible brand for the middle and lower class of the
society. HILAL capitalized on this weakness and targeted the lower, middle and
upper middle class of the society for it. That is the main reason why Limopani
was launched in sachets. Moreover Limopanis main focus is on teenagers as it
is refreshing and energetic drink and basically its target audience is general
public.
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SEGMENT MARKETING
There is no single way to segment a market. A market has to try different
segments variables alone and in combination to find the best way to view the
structure.
Actually, the target market of Limopani is everybody. HILAL has segmented the
market on the following basis:
Geographic
Demographic
Psychographic
Behavioral
MAJOR SEGMENTATION VARIABLES FOR CONSUMER MARKET
GEOGRAPHIC
COUNTRY
REGION
Pakistan
North
Urban
South
Suburban
East
Rural
West
DENSITY
DEMOGRAPHIC
AGE
FAMILY SIZE
6 19 years
20 - 30 years
30 - 45 years
45 and above
Single
Couple
Extended Family
Male
Female
GENDER
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Rs. 10,000
8,000
20,000
Educated
Uneducated
EDUCATION
Illiterate
PSYCOGRAPHIC
SOCIAL CLASS
Upper middle Class
Middle Class
Lower Class
Trend -- conscious
Cultured.
energetic
PERSONALITY
BEHAVIOURAL
OCCASIONS
Regular.
Occasional
Special Occasion
Refreshing
Energetic
All seasons
Regular users
Potential users
Non users
Strong
Absolute
Preference
Desirous
BENEFITS
USER STATUS
USAGE RATE
Light
(Single
Medium(2-3
glasses per day)
LOYALTY STATUS
None
Medium
READINESS STAGE
Aware
Liking
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POSITIONING
(SARAH)
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POSITIONING
Positioning is the perception of what a brand stands for in the minds of actual
and potential customers. It defines the core expectations customers have of the
brand.
Market Positioning defines how a company wants the target segments to see
their brands in a competitive market, and then deliver to the expectation that
have been built.
POSITIONING OF LIMOPANI
HILAL feels proud in saying that they are pioneer
in presenting the traditional flavors for better
customer
satisfaction
through
the
modern
and
changing
taste.
They
have
COMPETITIVE ADVANTAGE
HILAL has positioned Sun Sip Limopani on competitive advantage of traditional
flavour of lemonade as compared to TANG. HILAL has differentiated Limopani
on the basis of PRODUCT DIFFERENTIATION.
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VALUE PREPOSITION
Value propositon refers to the full mix of benefits upon which the product is
positioned. Sunsip limopani is positioned on the following characteristics:
As an instant drink.
As a refreshing drink.
POSITIONING STATEMENT
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MARKETING MIX
PRODUCT (SARAH)
PRICE
DISTRIBUTION
SAROASHA
PROMOTION
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PRODUCT
Product Form
LIMOPANI is the first energetic drink to introduce the traditional flavor of
lemonade in the market. Sun Sip Limopani is basically an instant drink; the basic
idea behind Limopani isany time any where. Hilal entered the market because
they realized TANG was not catering to 100% of the market.
LEVELS OF PRODUCT
Augmented
Actual
Core
There are basically 3 levels of products:
a) Core Product: It means benefits the consumer seeks from buying the product.
Limopani is affordable, refreshing drink that delivers what it promises.
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b) Actual Product: It may have as many as five characteristics that are quality
level, features, design, brand name and packaging.
Limopani is energetic, instant, enriched with vitamin C, 100% synthetic, all
seasons and high quality drink at economical prices under the brand name of
SUNSIP, highly associated with lifestyle and occasions.
c) Augmented Product: It is around the core and actual product by offering
additional consumer services and benefits. Hilal does not offer any after sales
service for Limopani.
CLASSIFICATION OF LIMOPANI
Limopani falls into the class of consumer product. These are products that are
bought by final consumers for personal consumption. Consumer products include
convenience product, shopping product, specialty product and unsought product.
Limopani is a convenience product.
Convenience product
PRICE
LOCATION
PROMOTION
Mass promotion
LIMOPANI DECISIONS
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ATTRIBUTES
BRANDING
PACKAGING
SUPPORT
SERVICE
LABELING
ATTRIBUTES OF LIMOPANI
Quality: High quality, Limopani is performing its functions well (performance
quality) by delivering what it promises (conformance quality).
Features: Energizing, instant, enriched with vitamin C, for all seasons, traditional
taste of lemonade.
BRANDING
The SUNSIP brand is a name-turnedsymbol. The name sunsip was initially just
a name in the industry. But it quickly gained
a name and a loyal following for itself.
Through excellent traditional taste, sunsip
caught for itself a large market share from
TANG, the market leader at that time.
Continued innovation through its Research
and
Development
department
helped
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PACKAGING
LABELING
Labeling identifies the product or brand, on limopani the name sunsip is printed
which identifies its brand name. Limopani labeling describes several things about
it like:
LABELING
How to make
it
Ingredients
Kings logo
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Ingredients.
Finally the attractive graphics of limopani with the picture of lemon indicating it is
a pure lemon drink.
PRODUCT SUPPORT SERVICE
No product support service is available.
Limopani
Body charger
Shakerz
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Thanda Orange
Thandai
Limopani is high growth and high share product of Hilal. Its a star. It is
generating cash but the market is growing rapidly so heavy investment is needed
to finance its growth, which is provided by HILAL cash cows (choco4, churan
chatni and ding dong etc).
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It is a major launch and its market attractiveness is high with HILAL strength in
the market. Eventually it is expected that in coming 5 years it will become a cash
cow when its industry matures.
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CONSIDERATION
OBJECTIVE
Intensive distribution
DISTRIBUTION
Situational
ADVERTISING
SALES PROMOTION
BRAND DEVELOPMENT
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LIMOPANI
EXISTING BRAND
Hilal had created a new brand name Sunsip by entering a new product category
of instant drinks for which none of its previous brand name was appropriate.
Limopani is energetic drink and associated with energy (brand positioning
Sunsip ------ energy)
PRODUCT CATEGORY
New
Existing
LIMOPANI
New
Existing
Line
Extension
Brand
Extension
Multi
Brands
New
Brands
LINE EXTENSION
After the superb success of sachet launch of limo pani, hilal has introduced
additional package sizes under the same brand sunsip. It has introduced jars and
cartons to introduce it as an occasional drink.
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PRICE
LIMOPANI PRICING APPROACH
HILAL has adopted Competitive Pricing approach. They have adopted this
pricing approach on competitor's on-going rates with less attention to their own
cost. Compared to their major competitors, Hilal is offering product differentiation
as traditional taste of lemonade (as people were used to of home made drink of
this type) for same prices. Limopani promises to deliver traditional taste at same
prices.
Hilal has used this method to compete with their competitors. If they offered high
price, consumers would not have purchased it. On the other hand, if they offered
low price, consumers would have considered it as a low price product. Therefore,
they adopted the competitive pricing approach to send a message that Limopani
is at par with its competitors in terms of both quality and price.
This pricing method has been extremely successful and has helped Hilal to
achieve its objectives.
List Prices of different package sizes of Limopani
PACKAGE SIZE
PRICE
Sachet(26.8 gms)
Rs. 6
Rs. 60
Rs.100
Rs. 110
Rs.180
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Hilal had set the initial price low in order to attract large number of buyers quickly
and to win large market share. This is why they launched Limopani first in
sachets in low price matching their major competitor so that consumers can
easily try it.
Internal
factor
Marketing
Objective
PRICING
DECISIONS
External
factor
Competitors
Price
INTERNAL
Marketing objective
Limopanis marketing objective is to cater all market segments, its a drink for
any time any where. Due to this they have set their prices as easily affordable
by all markets that was the main reason of sachet launch of Limopani.
EXTERNAL
Competitors price
The major factor affecting its pricing strategy is competitors price, they have set
prices following the general trend of its major competitor Tang, because setting
lower prices would result in bad image and high prices would result in low sales.
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DISTRIBUTION
CHANNEL LEVEL
FACTORY
DISTRIBUTOR
RETAILER
DISTRIBUTION
Distribution refers to the steps taken to move and store a product from the
supplier stage to a customer stage in the supply chain. Distribution is a key driver
of the overall profitability of a firm because it directly impacts both the supply
chain cost and the customer experience. Distribution creates time and place
utility.
Intensive
Exclusive
Selective
Distribution
Distribution
Distribution
Since drink is a convenient product, Hilal uses intensive distribution to make sure
that the product is widely available at as many outlets as possible.
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ASSORTMENT
Limopani is easily available all over Pakistan. Sachets are available at every
road corner store as well as at all big general stores, whereas Limopani cartons
and jars are available exclusively at big general stores and all grocery stores. e.g
Aghaz, Naheed, EBCO and Mottas for Karachi.
LOCATIONS
It is available all over Pakistan in all provinces, in urban, suburban and even in
rural areas.
INVENTORY
They depot all the stock from factory to distribution centers, these centers
invest and stock their goods and finally deliver to retailers.
TRANSPORTATION
They are using trucks for transporting goods from factory to distribution centers.
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PROMOTION
Hilal being the market leader has a very aggressive promotion strategy.
Limopani takes out product promotions by its exclusive time checks on Radio
and various Television channels. Its emphasis is on the major chunks of the
market size, therefore to stays on its consumers mind it involves in effective
advertising campaigns on Print and Electronic media, bill boards at different
places which is also a part of its promotion strategy.
TARGET MARKET
Limopanis target audience is basically the general public. On a more detailed
note it targets the lower middle class and middle class. It tries to draw in potential
customers,
while
trying
to
keep
the
current
consumers
happy.
COMMUNICATION OBJECTIVE
Initially, Hilals communication objective was to create awareness and knowledge
about Limopani, an instant drink that replaced traditional method of making
Lemonade.
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MESSAGE DESIGN
MESSAGE
Emotional Selling
Proposition: positive
emotional appeal
concerning love & joy.
Attractive and
popular models,
displaying
naturalness in their
roles.
Multi-sided presentation:
relates to younger
generation as well as older
one.
33
COMMUNICATION CHANNELS
Limopani uses a non-personal communication channel, i.e. print media, display
and broadcast media.
34
ADVERTISING
Brands are not only sold as physicals
attributes but rather sold as perceptions;
there fore the role of advertising can
never
be
ignored.
The
success
of
ads
reinforced
the
different
and
execution
and
the
Currently, Hilal advertises Limopani mostly through Radio and Television ads. Its
objective is to satisfy all types of customers by focusing on their different need.
For this they promote Limopani as
a product which can be consumed
at any time, whether u are out
shopping, exercising, studying, or
hanging out with friends. Their ads
show love, care and affection
among family and friend. The ads
show that family and friends can
spend good quality time together
and can refresh themselves by having Limopani.
Apart from focusing Limopani as a refreshing drink in their ads, Hilal is also
highlighting their customers. Their recent ads deliver the message that
Customer is always right. This is inline with their mission of satisfying their
customers.
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COMPETITOR
ANALYSIS (LUBNA)
37
ANALYSIS OF COMPETITORS
Competitors are the major threat faced by every company in a market.
Companies need to keep a careful check on its competitors. They have to keep
into consideration that what other competitors is offering, at what prices, what
quality, what benefits etc.
Limopani was a new concept but it has captured a very large market. However,
all major powdered drinks are its competitors.
COMPETITION
For ease in analyzing competition, competition can be divided into four types:
BRAND COMPETITION
Competition that exists between several brand of the same company or different
company in the same industry is called brand competition. Limopani faces tough
competition from Tang, as it acquires a dominant place in the market. At a lower
38
side it faces competition with Energile, Kwikool and Suncool. Recently, a new
powder drink Frutility has been introduced in the market.
INDUSTRY COMPETITION
Competition that exists between several industries offering same product is
called industry competition. Hilals major industry competitors are Kraft Foods
who are producer of Tang and now they would face competition tough from
National Foods who have come up with a powder drink recently called Fruitility.
FORM COMPETITION
All different products that are satisfying the same need is called form competition.
Limopani have form competition with Energy Drinks (Red Bull, Bomba, Caution,
Blue OX, etc), Frooto, Mitchells Squash etc
GENERIC COMPETITION
On the Generic side Limopani is competing with every consumer product that are
available in the market from Candies and Bubble gums to powdered drinks.
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MARKET SHARE
TANG
40%
LIMOPANI
20%
ENERGILE
9%
KWIKOOL
5%
OTHERS
26%
TANG
Tang is the global leader in Krafts
powdered soft drink portfolio. By
providing a nutritious, real fruitflavored drink at an affordable price,
Tang has gained great popularity in
Latin America and emerging markets
in Central and Eastern Europe and
Asia, including People's Republic of
China.
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ENERGILE
Unilever Pakistan Limited is the largest fast
moving consumer goods company in Pakistan.
Energile belongs to powdered drinks Rafhan
Bestfood Ltd which is owned by Unilever.
Energile is the only energy drink produced and
marketed by Unilever. Over the years it has
been able to retain a constant share how ever
with growing consumptions and competition it
is facing serious challenge to retain its
customers. Energile with its new variants has
not been able to register in the minds of it hard
core consumers and with the launch of Limopani it is losing cutomers in the rural
market also.
SUNCOOL AND KWIKOOL
Suncool and Kwikool were introduced in the competition after the launch of
Limopani but they could not acquire dominant market share because of its low
value.
FRUITILITY
Recently, National Foods has introduced a new powder drink by the name of
Futility. Because National Foods is a well known brand among consumers,
Limopani will have to face a tough competition from them in the future.
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TANG
FOSTER CLARKS
LOW
QUALITY
HIGH
QUALITY
LIMOPANI
ENERGILE
KWIKOOL
SUNCOOL
FRUITILITY
LOW PRICE
The position which Limopani holds in the minds of the target audience is of high
value. It offers people more value than just a flavored drink; however the
competitors lead in the area of perceptions, as TANG is considered to be the best
and of most high value. In reality the prices of Limopani and Tang are some
what same but still it is not considered as a premium brand.
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SWOT ANALYSIS
STRENGTH
Sugar free
Effervescent
WEAKNESSES
No previous experience
No brand image
OPPORTUNITY
Growing Market
Health awareness
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THREATS
44
CONCLUSION
Kings Food (Pvt.) Ltd, the company behind Limopani, saw the huge market of
flavored powdered energy drinks with only few major players life Tang and
Energile. In Pakistans generally hot weather, lemon juice is traditionally
consumed in water to provide refreshment from the sweltering heat of the sun.
you will often find thailay walas near bus stops or populated places selling
these drinks, locally termed as sikanjbeen or nibopani. Thus Kingd food gave
birth to Limopani as a direct competitor of Tang and Energile in powdered
energy drinks market. Since its launch, Limopani has captured 20% market
share and has been a great success.
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RECOMMENDATIONS
Limopani has well defined segments and the products are targeted and
positioned accordingly. However, according to our analysis, there are certain
areas where Limopani can avail a lot of opportunities.
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