Marketing Management

Project Report

Topic:

Marketing plan of Peek Frean

Project Managers:

Jhanzab Ahmed BB093029

Aamer Zahoor BB093023

Ubaid Siraj BB093010

Supervisor:

Sir Ahsan Ahmed

Section:

Date:

1st July, 2011

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 Table of Contents
1. Dedications .............................................................................................................................. 3
2. Acknowledgement............................................................................................................ 4
3. Abstract.................................................................................................................................. 5
4. Introduction: ....................................................................................................................... 6
5. Methodology....................................................................................................................... 7
1. Purpose of Research ...................................................................................................................... 7
2. Market Segmentation .................................................................................................................... 7
3. Market Size:- ................................................................................................................................... 9
4. Market Trend:- ................................................................................................................................ 9
5. Study Methodology:- ..................................................................................................................... 9
6. Goals: .................................................................................................................................. 9
7. Core competencies ........................................................................................................... 10
8. Peak freans Biscuits have following over competencies .................................................. 10
9. Market analysis ................................................................................................................. 10
10. Portal forces ...................................................................................................................... 10
11. Competitors: ..................................................................................................................... 11
12. Gap identification: ............................................................................................................ 11
13. Supply chain management: .............................................................................................. 11
14. Strategies…........................................................................................................................ 11
15. Tactics and Sustainability: ................................................................................................. 12
16. SWOT analysis of EBM Peek FreansBiscuits ..................................................................... 14
17. PEST Analysis of Abu Dhabi:.............................................................................................. 15
18. Main Aspects of PEST: ....................................................................................................... 15
Political factors: .................................................................................................................................... 15
1. Economic factors: ......................................................................................................................... 15
2. Social factors. ................................................................................................................................ 16

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 Dedications

To hands,

Shivering and uplifted

Eyes heavy and thoughtful

Of my parents;

Hands ever praying for me

Eyes with dreams in of my bright tomorrow

These hands may never fall down.

These eyes may never go to asleep.

This project is dedicated to our most Respectful and

Honorable teacher

Sir Ahsan Ahmed who always motivate us towards Positive

thinking and towards success.

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 Acknowledgement

First of all we thank Almighty ALLAH, we believe that without the valor

given by Allah, we were not been able to complete this Assignment After

that we want to thank all of the persons who helped us during the challenging

time we faced while carrying out this Assignment.

We are thankful to our Teacher Sir Ahsan Ahmed Inspiration and direction,
also parents & fellows for their hold and prayers

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 Abstract

Our assigned task was to prepare the marketing plan for

product launching in Middle East, fro this we choose Peek
Freans Biscuits as our product and Abu Dhabi as our target
Market.

Basically the purpose of making this report is to know the

strategies and tactics that how the product will be launched
in a new market? What marketing tool are required, how much
budget we have to spend, how can we capture the market etc.

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Introduction:

Peek Freans biscuits is the brand of English Biscuit Manufacturers Pakistan

(Pvt) limited. EBM Pakistan is the leading manufacturer of biscuits and
cookies in Pakistan since 1967. The company has the capacity of producing
more than 90,000 tons annually. In Pakistan EBM is the first biscuit company
which achieved ISO - 9001 Certification. EBM is the only Company in the
industry to have achieved recognized international certifications pertaining
to quality control, environmental management system and human resources
management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications
and IIP (Investors in People) Recognition. EBM is also the only food company
to have been awarded Environmental Excellence Award for seven successive
years 2004, 2005, 2006, 2007, 2008, 2009 & 2010. Peak Freans is getting Rs
12 billion annual turnover.
Brand range of Peek Freans includes Marie, Gluco, Click, Sooper, Rio
Strawberry Vanila, Rio Choco Vanila, Rio Choclate, Rio Vanila, Party, Peanut
Pik, and Peanut Pista.

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Methodology
1. Purpose of Research

The purpose or our research is to develop a new product & to make better policies about the
development & marketing of our product. Basically marketing research characterizes the voice
of the consumer in a company.

Marketing research provides the answer to these questions and analyzes the market situation.

1. What is happening in the market…the trends going on and about the competitors?
2. Consumer feedbacks...How do the consumer talks about the product in the market?
3. The most important needs and the consumer needs satisfy from that product?

By market research you can get some ideas that that there is a market ay by your thinking and
the successful launch and growth are possible regarding your product

2. Market Segmentation

Market Segmentation is the division of market or population into subgroups with similar
motivation. Markets favor companies with clearly defined target segments. Market
Segmentation Services provides fresh, perspectives for increased customer identification,
selection, profitability, and retention. There are a variety of factors that must be examined
to identify relationships and market segment discriminators, including…

 Environmental attitudes
 Demographics
 Geography
 Personality differences
 Psychographic differences

Population 1.7 million

0-14 years: 20.4% (male 500,928/female 478,388)

Age Structure 15-64 years: 78.7% (male 2,768,030/female 1,008,404)
65 years and over: 0.9% (male 27,601/female 15,140)

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Birth Rate 15.98 births/1,000 population

Death Rate 2.08 deaths/1,000 population

Population Growth Rate 3.282%

Net Migration Rate -19 migrant(s)/1,000 population

Total fertility
Rate 2.4 children born/woman
Nationality noun: Emirian(s) (Emirati)
adjective: Emirian (Emirati)

Ethnic Group Emiri (Emirati) 19%(Indian, Pakistani, Bangladeshi, Sri Lankan)

50%other expatriates (includes Westerners and East Asians) 8%
Religion 76% - Muslim

9% - Christian

15% - Other (Hindu, Buddhist) %

Arabic (official), Persian, English, Balochi, Urdu, Hindi, Bengali,
Language Somali, Malayalam, French

Literacy Rate Over all Literacy rate 91%

Age 15 and over can read and write
total population: 77.9%
male: 76.1%
female: 81.7%
Educational Expenditures
25 percent of total federal government spending

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 3. Market Size:-

We are using convenience sampling technique for our research. Due to lack of primary
research we are making a descriptive and observational study to make the research plan
affective and successful.

4. Market Trend:-

Now a day’s market of Abu Dhabi in the process of rebuilding due to the international
recessions the market of Abu Dhabi collapsed. So trends in the market are positive because
of growth when the economy is growing it is the best time for any business to be launched
and get maximum out of the market.

5. Study Methodology:-

We use qualitative technique instead of quantitative study. We study different books &
related material from the internet to design a perfect marketing plan for our product. In this
we collect most of our data from internet. We study journals, articles & books etc.

Goals:
We are taking 60000 units to Abu Dhabi. Our main goals and focus would be:

1. Entering the product successfully into the market.

2. Making our brand
 Differentiated
 Memorable
 Simple
 Affordable
 Easily available
 Designed for many different tastes.

3. Targeting maximum number of health conscious and south Asian/subcontinent

people’s tradition taste of baked food.
4. Gaining maximum market share by fulfilling the gap identified and providing the
flavors unavailable in Abu Dhabi market.
5. Successfully defending our market share and sustaining growth.

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Core competencies

Peak freans Biscuits have following over competencies

 Quality
 Strong Distribution system
 Advance production system
 Strong Market knowledge of their Sales forces
 Expert Man forces

Market analysis

Portal forces
1. The threat of substitute products

In Abu Dhabi there are several bakery food companies trying to gain market share competing
against two market giants for this the threat of products like

 Snacks
 Cookies
 Cakes
 Biscuits from niche markets

2. The threat of the entry of new competitors:

While after the recession as the economy of UAE is again growing the Indian food leader
company Britannia is looking for a major investment in the market for gaining the market share.

3. The intensity of competitive rivalry:

There is a concentrated market in Abu Dhabi for bakery food & especially for biscuit and
cookies. While there is still a lot of potential for the new players in the market as it is estimated
that the market growth rate for biscuit & cookies products will be round about 11% till 2015
which is comparatively much higher than the rest of the world which is 7% and this makes an
ideal location for the bakery food companies to invest in.

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 4. The bargaining power of customers & suppliers:

The bargaining power of the customers can be understood by the number of suppliers, per
capita income and the biscuit companies operating in the market which clearly shows that
consumers of the market have a lot of choices in alternatives while getting their desired flavors
at the price proposed by the companies.

Competitors:
Oreo, mcvities, tim tam, ulcer, Americana, nabil, Britannia, parle, nutro, bisca

Gap identification:
While comparison the brand portfolio or the brand width of all the major and small competitors
and peek freans biscuits and the changing trends in UAE people there is a big gap is identified
for the peak freans biscuits. All of the companies’ competing in the market are making the
chocolate, crème and plain sweet biscuits while 1 of the companies is focusing on digestive
biscuits. The gap identified is the lack of brands purely related to the subcontinent people i.e.
Pakistani, Indians, Bangladeshi etc. while in the fast growing economy and its people are much
more health conscious therefore to fulfill their needs the brand width of peek freans biscuits
has the products like whole wheat slice, click biscuits, peanut pik, peanut pista.

Supply chain management:

 Our supply chain management would be tried to ensure:
 Cost effective
 Timely delivery
 Strong negotiation power
 More choices
 As less damage or loss as possible to the product
 Customized packaging facilities

Strategies…
The general strategy for launching and making our brands successful in the market is
inducting the mixture of two strategies in general which are Flank Attack strategy followed
by encirclement attack strategy which will be backed by niche marketing strategies
comprising the tactical maneuvers.

Price:

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 In the beginning the first approach for capturing the high market share and differentiation
of our brand in the minds and hearts of consumer would be competitive prices or skimming
strategy.

Place:

Product will be channelized through departmental chain stores where are target consumers
people of subcontinent most often go and shop. The flanker brands or niche marketing
brands would be delivered mainly through retailers and wholesalers for targeting the
maximum numbers of people as soon as possible.

Promotion:

For promoting the product effectively and attracting the people for our product promotion
campaigns would include

 Educational institutes
 Celebrity endorsement
 Intercommunity and intra community food festivals
 Special discount offers for buying online from most visited web sites

Tactics and Sustainability:

 Once the product enters in the market then the backup formulas, tactics and
counter strategies will be applied to counter any evolving threat or situation.
 We will start to expand our market by introducing the product flavors same as the
other companies to gain maximum revenue.
 Depending upon the initial response a customized product tactic would be used to
deliver the choices like 2 in 1 and 3 in one packages which mean that customers
would get easily 2 or 3 flavors of their choice.
 Jumbo packages would be introduced for traveling, hiking and parties etc.
 If we are attacked back then to counter them they would be attacked with crackers
which are not available in the market.
 Peanut and pista biscuits would be provided also as an essential part of breakfast by
selling it with breakfast cereals by collaborating with other high profile ready bakery
food companies.

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SWOT analysis of EBM Peek FreansBiscuits

Strengths Weakness

Supremacy is due to our prime emphasis on New market for product.

quality
Products coupled with an excellent Limited distribution resources in Abu Dhabi.
distribution network for export.
Quality and innovation are the hallmarks of Less chocolate flavors than the competitors.
CBL.
Finest ingredients and hygienic conditions for Very few B2B connections are available.
the manufacturing
The only biscuit industry in Pakistan certified Lack of integration among SBUs.
with ISO 9001, 14001 and OHSAS 18001
certified

Opportunities Threats

Population growth rate. Increasing interest rates.

High urbanization rate. Two big players in the market.

High literacy rate. Recessionary period in business cycle

Flexible government policies for food industry. Product knowledge

Have significant growth opportunities New arrivals of competitors

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PEST Analysis of Abu Dhabi:
A PEST analysis is one of them that are merely a framework that categorizes environmental
influences as political, economic, social and technological forces. The analysis examines the
impact of each of these factors on the business.

PEST analysis is a useful strategic tool for understanding market growth or

decline, business position, potential and direction for operations. The headings of PEST are a
framework for reviewing a situation, and can in addition to SWOT and Porter’s Five Forces
models, be applied by companies to review a strategic directions, including marketing
proposition. The use of pest analysis can be seen effective for business and strategic planning,
marketing planning, business and product development and research reports. PEST also
ensures that company’s performance is aligned positively with the powerful forces of change
that are affecting business environment .PEST is useful when a company decides to enter its
business operations into new markets and new countries. The use of PEST, in this case, helps to
break free of unconscious assumptions, and help to effectively adapt to the realities of the new
environment.

Main Aspects of PEST:

 Economic factor
 Political factor
 Social factor
 Technological factor

Political factors:
These refer to government policy such as the degree of intervention in the economy. What
goods and services does a government want to provide? To what extent does it believe in
subsidizing firms? What are its priorities in terms of business support?

 UAE Federal Government

 Each Emirate has its own governmental institution.

 The ruling family of each Emirate is a member of the Supreme Council, which is
responsible for policy-making and electing the president and vice president for
five-year terms.

1. Economic factors:
These include interest rates, taxation changes, economic growth, inflation and exchange rates.
As you will see throughout the "Foundations of Economics" book economic change can have a
major impact on a firm's behavior.

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Economic Growth 16.7% this year,
Inflation 3%
Taxation No tax on personal salaries, 5% tax on hotel services and
entertainment.
Customs duty 10% on luxury goods and 4% on the CIF value of all other goods
imported
Local Taxes 5% for residential premises and 10% for commercial premises.
Exchange Rate Dh3.67 per US dollar
Oil exports: 2.2 million barrels of crude oil/day,3rd largest exporter

2. Social factors.
Changes in social trends can impact on the demand for a firm's products and the availability
and willingness of individuals to work. In the UK, for example, the population has been ageing.
This has increased the costs for firms who are committed to pension payments for their
employees because their staff is living longer. It also means some firms such as Asda have
started to recruit older employees to tap into this growing labour pool. The ageing population
also has impact on demand: for example, demand for sheltered accommodation and medicines
have increased whereas demand for toys is falling.

3. Technological factors:
New technologies create new products and new processes. MP3 players, computer games,
online gambling and high definition TVs are all new markets created by technological advances.
Online shopping, bar coding and computer aided design are all improvements to the way we do
business as a result of better technology. Technology can reduce costs, improve quality and
lead to innovation. These developments can benefit consumers as well as the organizations
providing the products. Gulf Information Technology Exhibition – one of the 3rd biggest
exhibitions of its kind

Typical PEST factors to consider

Political EU enlargement, the euro, international trade, taxation policy

Economic Interest rates, exchange rates, national income, inflation,

unemployment, Stock Market
Social Ageing population, attitudes to work, income distribution

Technological Innovation, new product development, rate of technological

obsolescence

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 Marketing stimuli other stimuli

• Health biscuits • Cultural

• Nut biscuits • Tecnalogical
• Zeera biscuits • Halal
• Crakers
• Plain sweet biscuits
• Cream biscuits

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