Professional Documents
Culture Documents
Volka Foods Marketing Comparison
Volka Foods Marketing Comparison
Marketing Management
Volka Foods
1
Volka Foods
Overview 4
Company Background 4
Mission Statement 4
Vision Statement 4
Values 4
Brand Mantra 5
Product Portfolio 5
Product Portfolio 5
Historical Timeline of VFI VOLKA FOODS 6
Direct Competition 6
Indirect Competition 6
Market size 6
Point of parity 7
Competitors 7
Competition brand: 7
Hilal Foods: 7
Mission statement of Hilal foods : 8
Reasons for choosing Hilal as competitor 8
Hilal Foods products 8
CandyLand: 8
Vision statement 9
Mission 9
Reason for choosing 9
Candyland Products: 9
Statistics of the Company 10
2
Volka Foods
Conclusion/Recommendation 45
1. Development of a new product 45
2. New display strategies 45
3. Alliances with other brands 45
3
Volka Foods
Overview
Company Background
olka foods is a non-listed public limited company formed in 2009. It currently employs around
V
2500 people. It occupies around 30% share in Pakistan’s confectionary market. It started it
production with a brand name of Giggly and was producing mainly jellies while it later enters
the bubble gum. Later in 2015 company started producing biscuits with a brand name of
Cookania. Then in 2017 Volka foods introduced pasta with a brand name of Marios pasta.
Mission Statement
“Our products are as fresh and sweet as our promise”
Our Mission is to provide a wide variety of high-quality products that undergo exemplary quality
checks and procedures ensuring superior quality standards. At VFI our focus is to provide
consistent quality to our customers, which we have achieved successfully due to stringent quality
controls and modern research and development at every stage. Our world class laboratory experts
run regular checks and examine every product at each stage thoroughly. Our team consists of
highly trained professionals, skilled technical staff and latest, state of the art equipment including
moisture analyzers, ash determination equipment, and spectrophotometer and purity
confirmation equipment.
Vision Statement
“Our vision is to create a wide and innovative range of the most endearing brands and to be the
market leader in confectionery and bakery production category.”
Any company’s vision statement depicts what they wish to be in the future and VFI’s vision
statement shows their wish to be the market leader who provides superior quality products
and has the greatest market share among their competitors.
Values
The four values that define VFI and continue to influence their practices are:
● Leadership: VFI core value lies in the desire to be the pioneers of change and stay a
leader in the industry.
● Innovation: They want to continue to innovate in every area and come up with new
products to cater to their target market.
● Vitality: They wish to continue to add and maintain value to lives.
4
Volka Foods
● Humanity: They express a desire to help and extend themselves to uplift the lives of the
most deserving people as they have already done so and will continue doing in the
future as well.
Brand Mantra
“Spread Sweetness”
The brand mantra serves the purpose of defining what the brand is and what it stands for. VFI’s
brand mantra asserts its position in the market as customer’s favourite in the confectionery
industry. Also, as VFI was one of the very first biscuit companies of its kind in Pakistan, it also
describes itself as a legend that will continue to lead through its excellent quality products and
services.
Product Portfolio
Product Portfolio
Volka foods has a very diverse range of brand portfolio with delicious and healthy biscuits as
well as a jelly, pasta, candies, bubble gums etc.
1.Cookania Tea time
2. Piknut
3. Zeeray
4. Milkabish
5. Boom Boom Bubble gum
6. Twister Candy
7. Fruity Max Jello
8. Marios Pasta
9. Chatkhari Jelly
10. Berries Jelly
11. Love Bites
12. Giggly milkies
13. Michlee
14. Fruity Fun
5
Volka Foods
Direct Competition
● Hilal Foods
● Candyland
● Hilal
● Candyland
● Innovative
Indirect Competition
● Kolson
● Fauji Foods
● Beak Parlor
● Knor
6
Volka Foods
Market size
Total market size is estimated to be over PKR 200bln in 2018
· Market size of the biscuit industry -formal and informal -
Mayfair 5% 5% 6%
(Asian foods)
Point of parity
The attributes and benefits that are not unique but can be shared with other brands. So the
prices of VOLKA FOODS and its competitor are same. They all are providing the same quantity
of biscuit at the same price. Similarly packaging design of VOLKA FOODS and its competitors are
the same. Although unlike most of it’s competitors, VFI has set up their own packaging line to
cut down further costs to compete with lower prices.
7
Volka Foods
Competitors
We have chosen Hilal Foods and Candyland as the main competitor brands because there
products are most used as compared to VOLKA FOODS. Each product is somewhat similar with
slight difference in ingredients, and shape.
Competition brand:
Hilal Foods:
Hilal foods is a major competitor of volka foods in terms of market share. It was considered as the major
opponent of volka foods when it entered the market in 2009. Hilal Foods Pvt. Ltd. is one of the leading
confectionery and food manufacturing companies of Pakistan and exporting to more than 20 countries
around the world. Since inception in 1957.
8
Volka Foods
CandyLand:
Ismail Industries Limited is one of the largest food companies in Pakistan, manufacturing a wide
range of confectionery, biscuits, snacks and packaging films under the brand names of
CandyLand, Bisconni, SnackCity and Astro Films respectively, There products are exported to
more than 40 countries around the globe including USA, Europe, Australia, Africa, the Far East
and the Middle East, where we have had strong business relationships with customers for over
15 years. Candyland is the market leader in Pakistani market. We are going to choose
Candyland as the second competitor as it is a major player in the confectionary market of
Pakistan. CandyLand, currently the largest confectionery company in Pakistan, started its
operations on June 21, 1988. The first brand was launched in 1990. From that point onwards,
the company has consistently achieved one milestone after another.They are the pioneers in
jellies and have launched brands in technically difficult categories such as lollipops and
marshmallows. They are exporting in more than 30 countries around the globe. iconic brands
that include Chili Mili, ABC Jelly, Funny Bunny, Puffs, Candyland Eclairs, Fanty and a range of
chocolates that include Now, Paradise and Sonnet.
Vision statement
At Ismail Industries Limited, we aim to offer high quality products to our consumers by
remaining the most technologically advanced company in our field. We strive to be the market
leaders in all the categories that we compete in. We work towards establishing a strong
foothold within and outside Pakistan, through both export and local manufacturing.
Mission
To capitalize on our values and maximize customer's satisfaction, we continually endeavor to
deliver consistent quality of products to our consumers. By extensively catering to the home
markets and strengthening our roots in international ones, we look forward to make our mark
in the industry. Our aim is to consolidate and strengthen our position as the most
technologically advanced company in our field. We believe in optimally combining our people,
technology management systems, and opportunities to achieve profitable growth while
providing fair returns to our shareholders. It is through recognizing the importance of efficiency
and creativity that we aim to achieve growth in a competitive environment.In a nutshell, our
mission is to become a good corporate citizen by being socially responsible and contributing
towards the betterment, growth and development of Pakistan.
Candyland as competitor is that candyland is the market leader in this industry. Analysis of this market
cannot be completed without analysis candyland. Another reason is that Candyland is the market leader
for jellies market which is the core product of volka foods. Candyland competes with volka foods in all
aspects both produces close products.
9
Volka Foods
Candyland Products:
● Now
● Yums
● Chocolatto (Chocolate filled)
● Cookies [coconut, zeera, peanut]
● Paradise
● Chocolate Chip [with chocolate or strawberry]
● Eclairs
10
Volka Foods
11
Volka Foods
Marketing Strategies
Product:
VFI’s products fall under three categories, biscuits, jellies and candies. The packaging of every
biscuit is done according to their target market and to gather attention to it. For example, the
packaging of Twister is very children friendly with colourful backgrounds and while the
packaging of Tea Time is more subtle for an older consumer base. The packaging of Love Bites is
done with bright iconic red to give it a bright distinctive. The biscuits are also available in
different packs in terms of size like half rolls or ticky packs for consumers with different income
levels. This gives the product a uniqueness of its own and hence attracts the consumers to try
out the product.
Price:
VFI follows a cost structure pricing but also comes up with prices on the basis of its competitors
brands. As packaging is done in different sizes for different demographic segments, the prices
of such products differ too. The the ticky packs are mostly sold for PKR 5 while half rolls are sold
for PKR 15 while most family packs are sold for PKR 35 but the maximum prices can go up to
PKR 250. Bulk discounts are given to wholesalers.
Promotion:
VFI uses advertising tools for three purposes, information, persuasion and as a reminder.
Regardless of their increasing market share VFI marketers keep on reminding consumers about
it through TV commercials with an attractive song as well as print ads. Cake Rusk was
introduced recently and needed to be introduced so VFI created an emotional ad about a
mother communicating with her child through messages with a cake rusk to inform consumers
about the product. The Tea Time ad, on the other hand, persuades consumers to buy it by
giving it by showing the versatility of the product. VFI also has a way of promoting its products
according to the target market. For example, the current Boom Boom ad immensely attracts
children due to its colours and animated characters. In addition to advertising, VFI also uses
publicity campaigns like collaborating with the movie stars, sales promotions and personal
selling as its promotional tools.
Placement:
VFI uses indirect marketing channels which mean it has intermediaries between the company
and the retailers who further provide the products to the consumers. As of now, it currently has
610 distributors that provide their products to different retailers. As VFI has a competitive
advantage of strong distribution network, they also get the eye level shelf space which in turn
increases their sales.
12
Volka Foods
Market Penetration:
As the demand for their products has increased due to the increasing population as well as the
brand’s popularity, VFI has also started selling more of its existing products in the existing
markets. As of now, VFI has managed to penetrate 65% of its market.
Product Development:
VFI has been consistently coming up with new products ever since its foundation. It started off
with saltish but has introduced 5 other biscuits and recently 4 new flavors of Jellies and setting
up the first Gluten Free pasta unit in Pakistan.
Diversification:
Usually, VFI products are considered for all age groups but this changed when they introduced
Fruity Jello, a Jelly that targeted the younger population i.e. children. With the introduction of
Mario's Gluten free and Whole Wheat Pasta, VFI introduced a new product targeting a new
market.
13
Volka Foods
High Growth
Boom Boom & Marios Pasta Line
Brittles
Low Growth
Tea Time & Gibbs Love Bites Jell-o
14
Volka Foods
High Growth
Cup Kake & Kake Bake Time
Low Growth
15
Volka Foods
High Growth
Cookies, Chilli milli Now, Chocolatto
Low Growth
Marshmallow & Treat Gold,
Cocomo Novita
16
Volka Foods
Weaknesses:
Opportunities:
Threats:
● Severe competition from Hilal Foods in terms of packaging, branding & advertising
● Availability of various local and foreign brands.
● Change in consumer preferences
● Price-sensitive industry
● Increasing sugar prices
● Economic crisis
● Growing Industry (Increased competition)
17
Volka Foods
● Unbranded biscuits
Weaknesses:
● Products like Novita, Rite and Zeera Biscuit are becoming increasingly unpopular
● Low budget allocated to promotional campaigns
● Not as popular as its two major competitors
Opportunities:
Threats:
● Price-sensitive industry
● Increasing sugar prices
● Economic crisis
● Growing Industry (Increased competition)
● Upcoming foreign brands
● Unbranded biscuits
18
Volka Foods
Weaknesses:
Opportunities:
Threats:
19
Volka Foods
TARGETING
Like mentioned above, VOLKA FOODS targets those consumers who are already their brand
loyals. They, thus, make purchase decisions based on their brand image. VOLKA FOODS also
targets unaware but potential customers who it can possibly divert from Candyland or Hilal to
itself. With regards to the demographics, VOLKA FOODS targets different age groups with
different products. For example, twister candy targets children of the age group 6 – 12 years
while Cookania tea time is a product fit for people of any age. Mostly, VFI VOLKA FOODS is said
to be targeting the 6-40 years age group. VOLKA FOODS is not very expensive. It is priced such
that it’s affordable by most people. Thus, it targets people belonging to a lower-middle, middle
or upper-middle income groups. With respect to psychographic segmentation, VOLKA FOODS
targets health conscious consumers with its Milkabisk biscuits, as well as those people who
suffer from health problems like Calcium deficiency. This could also come under the age
demographic as the older age group has more proportion of people suffering from calcium
deficiencies.
POSITIONING
VFI- VOLKA FOODS focuses on the level of quality of its biscuits as well as candies, gums and
jellies. So it seeks to position itself in the branded biscuit market as a high quality brand that
has a large variety of products enriched in taste and texture. It has the biggest product length
compared to its competition. It is also not very pricy so this is an important positioning point
from the viewpoint of its customers. Through its advertisements, VOLKA FOODS always
promotes the relationships of family members, for example the Cookania Tea time commercial.
This induces the image of a ‘family brand’ in consumers’ minds and hearts. It’s very often used
brand tagline “Taste the temptation” highlights VOLKA FOODS’ inclusivity as a local brand. It
shows that this brand has products that cater to the needs and wants of different types of
consumers. The brand signifies "trust, confidence and wholesomeness" for consumers. With its
regular affiliations with a number of social institutions, VFI VOLKA FOODS shows to its existing
and potential consumers how it cares deeply about the welfare of people in general. This gives
20
Volka Foods
VFI VOLKA FOODS a soft spot in the hearts of the consumers, and a stronger position in their
minds. VFI VOLKA FOODS major competitors in the market are Candyland and Hilal foods.. Most
of the strategies of both the companies are alike, with the same segmentation, targeting and
positioning strategies. However, VOLKA FOODS has introduced its new Pasta named by Mario
pasta in 2018. This gives VOLKA FOODS an edge over its competition.
21
Volka Foods
Candyland –STP
SEGMENTATION
Like most branded biscuit manufacturers, Candyland Brand also divides its broad market
through the demographic and behavioral elements. Under demographics, Candyland segments
the markets in terms of age and income level. Candyland also aims to break down its market in
terms of the user status of the consumers (loyalty to the brand).
TARGETING
Under demographic segmentation, Candyland targets different age brackets but most
importantly children. It’s very famous product, for example, Yums targets children of age
ranging from 4 to 16. Even people above the age of 16 consume this product though as such
products are not specifically age bound. It does, however, target more children or youngsters
than it does any other age bracket. Its advertisements also mostly follow children playing and
consuming its candies and jellies may those be eclairs, emli candy, chilli milli and Now
chocolate. Candyland is a relatively low-priced brand. It targets the lower, lower-middle and
middle income classes. Candyland also targets its brand loyals.
POSITIONING
Candyland, like mentioned above, is a low priced product. This is an aspect Candyland likes to
play with. It positions itself as a low-priced, affordable-by-all biscuits brand like bisconni.
Candyland claims to provide its customers the same kind of flavor and taste but at a lower
price. However, the quality difference between the biscuits is questionable. It also positions
itself as a brand liked by all children and parents through its commercials.
22
Volka Foods
TARGETING
The target market of Hilal Foods is the lower-middle, middle and upper-middle income group as
it is not high-priced. Hilal Foods biscuits, like its competitors, target children as well as people
belonging to the higher age bracket. This targeting depends gravely on which biscuit or product
under Hilal Foods we are looking at. For example, Cupcake are low-priced with various flavors
targeting young children ages 5-12, and their parents who shop for them. Hilal Foods targets its
brand loyals as well as potential clientele or people who consumer biscuits more often. Its
brand image attracts many customers to itself. It also targets health-conscious consumers with
its Wheatables cup cake named Bake time which are provided in high-fibre as well as high-fibre
sugar free contents. Hilal Foods may also be targeted old people with diabetes with this specific
product.
POSITIONING
Hilal Foods has a variety of different cup cakes, candies and jellies under its belt, each with new
flavors and tastes for different categories of people. This extended variety is focused upon by
Hilal Foods when positioning itself in the minds of its customers. It also positions itself as a
relatively low-priced and affordable brand offering high quality. Furthermore, it follows its CSR
through affiliations with some institutions. This gives a good image to its customers. Its major
goal is to position itself in the market in such a way that the target markets prefers to buy Hilal
Foods products instead of its major cutthroat competitor VOLKA FOODS.
23
Volka Foods
Communication Strategy
VOLKA FOODS
VFI VOLKA FOODS uses different communication channels to reach the consumers, inform them
about the product, persuade them to purchase it and reinforce this desire later. VOLKA FOODS’
print ads of its different biscuits like Tea time, piknut and Milkbisk appear in different
newspapers. These newspapers can be Urdu newspapers as well since biscuits are products
such that the person is not required to be very literate. In addition to this, television is also used
as a main medium of communication with the target market. These advertisements are played
on different types of tv channels: drama channels like Hum TV and ARY Digital, news channels
like GEO News and Dawn News and sports channels like Ten sports Pakistan and Geo Sports.
These TVCs have a huge impact on the position of VOLKA FOODS on the minds of consumers
and how they get persuaded to make a buying decision. Some of these television commercials
include an emotional appeal to them which touches the hearts of consumers. For example, the
new Mario pasta advertisement has gained fast and large recognition for its heart-warming
message. The audio track of these TVCs are also played on different radio channels in the
country. In both the TVCs and the print ads, the celebrity endorsements (if any) or the actors
are held constant to provide consistency in the marketing campaign. Other forms of
communication mediums used by VOLKA FOODS are below the line promotional strategies that
attract consumers. A recent example of this is the Mario’s pasta which is the first Gluten free
pasta manufactured in pakistan Marketing in Mall of Multan, Multan. VOLKA FOODS first
launched an announcer campaign to build hype and trial around the product Mario’s pasta
Hilal Foods
To effectively compete with its biggest competition in the Confectionery Market, VFI VOLKA
FOODS, Hilal Foods by Continental Biscuits Ltd used a number of different communication
channels. These include television, radio, print media, social media as well as below the line
promotional campaigns. Hilal Foods’s print ads are sent to different magazines and
newspapers, English and Urdu. These print ads contain vibrant colors to catch the attention of
the readers. The television advertisements play on all types of channels on television. The same
examples of Hum Tv, ARY Digital, GEO News, DAWN news, Ten sports Pakistan and Geo Sports
can be used here. It must be noted that these are a few of the extended number of channels
used by Hilal Foods to promote its product portfolio. These TVCs are informative and persuasive
for the consumers. The same TVC’s audio recordings are played on radio channels like FM 89.0
or FM 106.2 across Pakistan. This reaches those people who may not watch a lot of television or
those who do not have access to television or cable at all. Social media run campaigns are also
used by Hilal Foods. As the campaign that will be discussed further in the report, Hilal Foods
used digital marketing techniques through animations. Additionally, Hilal Foods also uses
24
Volka Foods
billboards as a communicative channel for some of its products (primarily Bake time by Hilal
Foods).
Candyland
Not far behind in the branded biscuits industry, Candyland has to maintain its position to make
sure other small competitors do not cross it in the race to success. Candyland also uses the
same communication channels to reach the consumers. Its TVCs appear on many channels on
television. However, one thing worth noticing is that only two to three of Candyland’s products
are promoted and advertised aggressively. Nevertheless, Candyland also uses print ads to reach
a larger audience and to make a greater impact since print media is a high-involvement
communication forum. Radio ads are also played on various channels. Its famous product, Chilli
milli is catchy and well-recognised tune in the food industry and even if it is played alone on
the radio, consumers know the product. Like other companies, Candyland also uses PR
campaigns to interact with consumers and promote its product line.
25
Volka Foods
26
Volka Foods
The other most promising thing about the TVC is that kids are obsessed with Afridi or
atleast know who he is as he’s the only real star left in our cricket team. It’s a
well-positioned ad.
Boom Boom Bubble gum has always been advertised through animated TVCs but this
time they decided to shift gears and use Afridi’s free time. The panda and Afridi look
quite adorable together and apart from the choppy editing the TVC is technically sound
with crisp visuals and nice angles. (Afridi’s sleek entrance in the last adventure is quite
charming).
27
Volka Foods
28
Volka Foods
Comparison
Three different ad campaigns have one thing in common and that is their target market, in
order to cater more and more market all three are involved in digital PR campaigns aimed at
communicating with consumers and raising more awareness about their product. However, CFI
used a slightly better tactic by involving Shahid Afridi in their campaigns to involve more
viewership, the celebrity endorsement through CGI has covered a vast market.
The marketing and positioning of BOOM BOOM is done very carefully, in 2009 when Pakistan
won the T20 World Cup Shahid Afridi became the nation’s hero and youngster favourite and his
involvement raises the viewerships by miles, Shahid Afridi had better ties with alot of TV
channels such as Geo News etc, so the play time in peak hours is also a plus point.
Survey Attributes
We conducted an online survey, in which there was 10 attributes. They were ranked according
to three options. Option 1 was most preferred, option 2 was less preferred and option 3 was
least preferred. More than 50 people responded to the survey. The attributes are: Taste,
Quality, Price, Packaging, product size, TVC attractiveness, brand awareness, availability,
personality, and aroma.
29
Volka Foods
30
Volka Foods
31
Volka Foods
32
Volka Foods
We have conducted a survey with High and Low Importance and Performance attributes, with
50+ respondents and 3 different questionnaires, following are the results;
33
Volka Foods
34
Volka Foods
35
Volka Foods
36
Volka Foods
37
Volka Foods
38
Volka Foods
39
Volka Foods
40
Volka Foods
41
Volka Foods
42
Volka Foods
The Grids and the mounted attributes according to numbers are shown below:
1. Hilal Foods
43
Volka Foods
2. Candy Land
44
Volka Foods
3. Volka Foods
45
Volka Foods
Conclusion/Recommendation
In conclusion, it is submitted that VFI VOLKA FOODS, It has been part of the industry for the last
2 decades, however, with the absence of entry barriers in the industry, competition in this
industry is increasing. The biggest threat to VOLKA FOODS is Hilal Foods by Continental Biscuits
Ltd. Henceforth, following are a number of strategies suggested to VOLKA FOODS that it can
use to tackle the cutthroat competition and the potential competitors too.
46