Lahore School of Economics

Export Marketing

BBA IV Marketing & Finance, Section: B

Company: Chashni

Submitted to: Maam Faiza Saeed

Group Members:

Irha Aamir

Khadija Imran

M. Huzaifa Adnan

M. Ibrahim

Submission Date: Tuesday, 11th May 2023

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Table of Contents

Executive Summary ..................................................................................................................3

Corporate Background .............................................................................................................4
Nature of Offerings ...............................................................................................................4
Distinctive competencies .......................................................................................................5
Current Marketing strategies ...............................................................................................6
Uniqueness of the product.....................................................................................................7
Chosen Market ......................................................................................................................8
Industry Analysis ......................................................................................................................9
Cultural Issues .......................................................................................................................9
Economic Issues .....................................................................................................................9
Legal or Political Barriers ................................................................................................... 10
Infrastructure issues ............................................................................................................ 11
Impact of Covid-19 on trade ............................................................................................... 12
Market Analysis ...................................................................................................................... 14
Demographic Segmentation ................................................................................................ 15
Psychographic & Geographic Segmentation ...................................................................... 15
Profile of competitive market.............................................................................................. 16
Buying Behavior and Market Size ...................................................................................... 18
Export Marketing Plan Recommendations ............................................................................ 21
Product ................................................................................................................................ 21
Distribution.......................................................................................................................... 22
Price ..................................................................................................................................... 24
Promotion ............................................................................................................................ 25
References................................................................................................................................ 27

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Executive Summary

Chashni founded in 2015, is a sweets company which manufactures a multitude of

traditional confections and desserts. It is a project of the Pakistani business group running

successful food ventures including YUM, Spice Bazaar and English Tea House. Chashni

differentiates itself from its competitors on the basis of its taste and superior ingredients.

Furthermore, they have the expertise to manage expectations and follow the strictest of SOPs to

provide with the highest quality of products to the customers. Our selected country of export is the

UK. We chose UK because it has a large South Asian population including a huge Pakistani

population. South Asian population in the UK officially is 7.5% according to a consensus done

in 2011. Chashni's consumer profile will be direct customers. B2C consumers would be served by

Chashni. Customers who would consume Chashni mithai would be young people who would

prefer the nutritional value that comes with the intake of sweets by offering sugar-free mithai.

Sweets play a vital role in people's lives; no celebration or celebration is complete without them;

hence people are willing to pay a premium for high-quality sweets. Chashni would be adopting a

premium princing strategy and would charge higher prices for its products as compared to the

competitors. Advertising and sales promotion are the most significant elements of the promotional

mix. We would be promoting the brand on social media platforms such as Instagram.

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Corporate Background

Chashni is a sweets company which manufactures a multitude of traditional confections

and desserts. It is a project of the Pakistani business group running successful food ventures

including YUM, Spice Bazaar and English Tea House.

The company opened its doors to customers in July, 2015. Offering a plethora of dessert

options, the company focuses on offering premium quality products made with carefully sourced

pure ingredients. Moreover, the brand strictly adheres to international quality and hygiene

standards to further improve its production process. As a result, while the company has a wide

variety of options for potential consumers, it has positioned itself as a high-end brand that charges

more for a superior product offering.

Chashni’s first outlet in Lahore was followed up by more branches within the city as well

as outside it. The company now also operates in Islamabad, Rawalpindi, Faisalabad and Multan.

Nature of Offerings
The company produces flavorful and rich South Asian desserts. These desserts are

subdivided into the following categories:

• Standard Sweets: These sweets are more generic and, therefore, available at more

affordable pricing. Offerings include “Gulab Jaman Kalay” and “Ladoo Motichoor Plain”.

A 1kg unit (i.e. the smallest available one) for such sweets is priced slightly in excess of

PKR 1,000.

• Premium Sweets: This category includes special desserts and delicacies. Products in this

category are priced higher than those belonging to the aforementioned category. Offerings

in this category include “Rustam Barfi” and “Anjeer Almond Rolls”.

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• Sugar Free Sweets: Chashni also has affordable options for more health-conscious

consumers. This differentiates it from many of its competitors.

• Baklawas

• Canned Items: Desserts such as “Gulab Jaman” and “White Cham Cham” are also

available in canned packaging.

Additionally, the company runs “Chashni” cafes in Lahore, Faisalabad, Islamabad and

Rawalpindi. These cafes operate separately from the dessert shops.

Distinctive competencies
Chashni differentiates itself from its competitors on the basis of its taste and superior

ingredients. Not only this, Chashni also offers a far greater variety of dessert choices than its

competition. For example, while Jalal Sons might offer similar quality products, it does not have

as many options for consumers as Chashni. This is especially true in the case of traditional desserts.

Thus, Chashni has carved out a distinctive and lucrative position for itself in the marketplace.

Having branded itself as a higher quality brand in comparison to its rivals, Chashni has

been able to strategically position itself through niche marketing and pricing. The company has

managed to successfully charge product prices comparable to those of exclusive sweet houses

while operating on a much larger scale.

As previously mentioned, the company also brands its goods as “South Asian” and not

“Pakistani”. In our opinion, this branding is likely to aid Chashni’s marketing efforts abroad as it

will be able to appeal to a larger proportion of the sub-continent’s desi diaspora. This is

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especially true in our case as the UK has a huge proportion of individuals hailing from SouthAsia

or that have a South Asian heritage.

Current Marketing strategies

For all celebratory needs, Chashni offers festive boxes and customized boxes using high

quality materials and ingredients. Chashni is known to provide wonderful presents and wedding

favors that brings elegance and style to any celebration that opts chashni as their option for sweet

celebrations.

Chashni tends to follow targeted marketing as it customizes with unique printed lace and

labels and attaches customized tags with congratulatory and welcome. This element of chashni

makes their marketing strategy unique and different from its competitors. This stratedy also tends

to convey a message of thanks and gratefulness to their visitors.

Apart from that, Chashni is a great source of customized packaging. It chooses and provides

its customers with a wide variety of boxes in all colors, shapes and sizes to make every newest

arrival and any celebration the most memorable one. Customers can choose from a range of

assorted ribbons and custom labels which complete the sweet treats' packaging for the event. These

boxes which are highly decorative in design, are made to ensure the freshness andexquisite taste

of the product as well.

Chashni also has an online presence which is in the form of a well maintained website

that provides concrete information related to the relevant products. Chasni also has activeFacebook

and Instagram pages that are not only eye pleasing but also go well with all the trends of digital

marketing and provide interactive social media engagement.

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With respect to physical outlets, Chashni’s outlets are related with YUM restaurant,

English Teahouse and Spice Bazar. The pricing of Chashni’s products range from Rs.1000 and

above which is relatively higher than its competitors which include Bundu Khan, Jalal sons,

Fazal Sweets and Baba Sweets.

Uniqueness of the product

In a country where sweets were still made from traditional methods and sold out of open

front shops. Sold with less regard of hygiene let alone aesthetics. At a time when cases of impurity,

unhygienic products and adulterated products were rising, Chashni emerged as a key player in this

market. Chashni was unique in all fronts.

Chashni puts quality as the utmost priority of their product. They claim to use the purest

desi ghee for all of their products. Unlike other competitors the packaging of their products

includes the date the product was created and how long it is best to consume which is usually 2-3

days to maintain freshness as they don’t want to add preservatives. Chashni is a brand of the group

that own Yum Chinese, spice bazaar and English tea house as well. They have the expertise to

manage expectations and follow the strictest of SOPs to provide with the highest quality of

products to the customers.

Product packaging is also unique of Chashni. The packaging is more stylistic and

aesthetically pleasing. It encompasses the tradition and culture of the region. They make efforts

to customize the packaging according to events as well. Previously they also collaborated with

fashion designers to design their packaging as part of a marketing campaign and creating

differentiation. This makes them the natural option to select when giving sweets as gifts. The

competitors have very generic packaging using their logo and brand colors only that are not

appealing to the customer.

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Chashni provides the most variety in the products they sell. They sell the most products

including most sweets from all of South Asian cultures as well as bakery, cakery and canned items.

They sell over 107 items in their menu which is more than all competitors in this category.

Chosen Market
Our selected country of export is the UK. We chose UK because it has a large South Asian

population including a huge Pakistani population. South Asian population in the UK officially is

7.5% according to a consensus done in 2011 (Ethnicity facts and figures, 2020). An updated

consensus would show a much higher percentage. This percentage shows a very attractive market

to sell to.

Chashni since provides products of all of South Asia it will be the best shop to cater to all

of this population. Since it is a Pakistani brand looking to sell in UK its level of authenticity will

add to its marketing and may even market itself. Many of the Pakistani population in the UK

may already be familiar with this brand and will choose it over others. Since it is a Pakistani brand

in a foreign country the Pakistani customers will automatically be more loyal to it and may even

advocate it to other potential customers.

Setting up shop will be easier as well as compared to other countries attributing to the large

South Asian population as well. It will be easier to find employees who are familiar to the product,

its production and marketing.

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Industry Analysis

Cultural Issues
The general public in UK is not used to rich sweets such as those hailing from South

Asia. The health-conscious public may also abstain from buying into the sweets for their high

sugar content. The act of giving sweets or mithai on cultural events/special occasions is also not

common in the West. Thus, Chashni may struggle to find a market within certain consumer

brackets.

Economic Issues
The United Kingdom continues to be one of Pakistan's most important trading partners.

Both countries' economic climates have shifted dramatically in recent years. In the four quarters

leading up to the end of Q3 2021, total commerce in goods and services (exports plus imports)

between the UK and Pakistan was £2.9 billion. Total UK exports to Pakistan were £911 million

while the total UK imports from Pakistan totaled £2.0 billion (Trade & Investment Factsheets,

n.d.).

According to historical data, there is a one-year "lag effect" between a slowdown in the

UK economy and the impact on Pakistan's exports. This means that Pakistan's exports to the United

Kingdom will not suffer a significant reduction in the near future. The "Covid-19 effect" on UK

consumption is not taken into account in this report (Brexit and the Likely Impact on Pakistan UK

Trade, n.d.). Non-tariff barriers, such as compliance and testing, that the UK may impose on

imports, including those from Pakistan, will be of particular relevance to Pakistan.

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Legal or Political Barriers

Exporting a particular brand from the home country to a foreign country consists of certain

trade barriers and regulations that need to be addressed. Chashni, being a PakistaniBrand,

is being exported to United Kingdom.

Looking at the trade remedies of exporting Chashni sweets from Pakistan to United

Kingdom, we see that UK does not apply any trade remedies on sweets. As shown in the figure 1,

sweets have an export potential of $720K from Pakistan to United Kingdom with an untapped

remaining potential of $207K.1 Supply and demand, as well as bilateral ease of trade, are used to

assess the potential export value of product K. United Kingdom and Pakistan’s imports record up

to $485mn and $17mn respectively, hence, United Kingdom’s applied tariff rate to Pakistan is

0%.2

Figure

1
Source: Export Potential Map accessed from:
https://exportpotential.intracen.org/en/products/analyze?fromMarker=i&exporter=586&toMarker=j&market=826&
whatMarker=k
2
Source: Market Access Map accessed from:
https://www.macmap.org/en//query/results?reporter=826&partner=586&product=040711&level=6

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Infrastructure issues
The UK's infrastructure is its economic backbone. It is the fabric of the country that

distinguishes it as a modern industrialized country. The quality and resilience of infrastructure in

the United Kingdom is directly related to the economy's development and competitiveness, quality

of life, and ability to meet climate change goals and commitments. The UK offers the ideal

combination of infrastructure components to move products and people around the country in

simple, economical ways, with over 70 airports, 40 major ports, great rail linkages, and toll- free

roads. The United Kingdom boasts Europe's fourth largest rail network. The efficacy of the UK's

infrastructure has a number of implications for society, business, and the larger economy.

Infrastructure owners and operators face hurdles in delivering this performance in the face of rising

demand, typically with ageing infrastructure and limited budgets.

One issue preventing significant infrastructure reform that would benefit the economy,

particularly in terms of productivity, is politicians' apparent obsession with major infrastructure

projects. Experts claim that a lack of political vision and long-term strategy, as well as Britain's

cumbersome planning system, are stumbling blocks to infrastructure development. The most

serious problem, though, is a shortage of funds. Following the financial crisis, David Cameron's

Conservative-Liberal Democrat coalition government implemented an austerity policy that

included cutting investment spending to help decrease public debt.

It is generally accepted that if the UK's infrastructure fails to satisfy current and future

demands, the country will face rising economic, environmental, and social difficulties. According

to government projections, about £500 billion will be needed to close the infrastructure funding

gap. The UK's National Infrastructure Commission (NIC) was founded in response to this

challenge to provide professional advice to the government on important

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infrastructure challenges, including strategies to overcome the funding gap. The outcomes of its

first National Infrastructure Assessment (NIA), released in July, are being disputed in London and

across the country.

Impact of Covid-19 on trade

COVID-19 also known as coronavirus plagued the entire world affecting more than 40

million people over the world. Talking about trade in Pakistan during the pandemic it is imperative

to know that the economy of Pakistan was already on the brink of collapsing due to incurring an

external debt of more than $100 billion. Covid-19 was however, a blessing in disguise as the

demand for exports increased especially for the textile industry. Due to the pandemic imports

significantly dropped such that Pakistan exported around $1 billion worth of medical supplies and

imported $980 million, hence a trade surplus occurred for some exports.

The government also played an important role by approving an Rs.1200 billion relief

package to deal with the crisis. The government eliminated tax breaks in the following industries:

automotive, pharmaceutical, industry, energy, and consumer goods, as well as imposing a 17

percent general sales tax on nearly 140 products in the following industries: sugar, poultry feed,

oilseeds for poultry, imported vegetables, and so on (Khan, 2019).

Estimates suggest that PKR 659 billion ($3.7 billion) of equipment and machinery imports

(mostly from EU member states) will be taxed over the next six months, accounting for nearly 30

percent of the annual machinery import bill for the current fiscal year (2021-22). Furthermore, the

government also abolished taxes on the imports of pulses and dry milk and a fund set for the

procurement of wheat.

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COVID appears to have cost the United Kingdom more than its peers. UK trade not only

experienced a significant decline in 2020, but also recovered more slowly than its main

competitors. When compared to the second quarter of 2019, the coronavirus (COVID-19)

pandemic had an impact on UK trade in services, with falls in both imports and exports of

around £16.7 billion (31.8 percent) and £14.9 billion (18.5 percent) in the second quarter of 2020

(Impacts of the coronavirus on UK trade: December 2020, n.d.). The decline in services was most

noticeable in travel and transportation; these trends are consistent with travel bans, global

lockdowns, and the requirement to work from home whenever possible. When compared to

Quarter 2 2020, the relaxation of some coronavirus restrictions increased imports and exports of

trade in goods in Quarter 3 (July to September) 2020.

According to statistics, the UK's GDP fell by 9.9 percent in 2020, the most since 1951, and

compared poorly to other economies. The UK's international trade has also suffered a sharp decline

as a result of supply chain breakdowns and weakened demand. Overall goods exports fell by 14.7

percent in 2020 (from 468.3 billion USD in 2019 to 399.6 billion USD in 2020), the worst

performance among the G7 countries (Du & Shepotylo, 2021). The United Kingdom exports a

diverse range of goods and services, many of which require extensive know-how. However, even

before the COVID crisis, the UK trade faced significant challenges. Brexit uncertainty had already

resulted in trade disruption and diversion for several years (Crowley et al., 2019; Douch et al.,

2019; Graziano et al., 2020). Post-Brexit red tape and other non-tariff barriers have put some

businesses in an unfavorable position in a volatile, fiercely competitive marketplace. As a result,

the UK's trade collapse in 2020 was the result of two crises, not one.

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Market Analysis
As at-home habits persist, many consumers in the United Kingdom demand confectionery

and desserts to be offered online in 2021. It can also be seen that sugar and confectionery spending

in the United Kingdom reached 13.6 billion British pounds in 2021. This is an increase of 4.6

billion pounds over 2011 (Trenda, 2021). Looking at these trends, it is evident that with the

increase in the production of sweets in the UK, it is the right time to open Chashni store that

provides a wide range of mithai to its customers online and in-store. Figure 1 shows the sales value

of sweets in selected European countries, indicating that confectionery sales in Germany were

worth over 7.3 billion euros, followed by 6.5 billion euros in the United Kingdom (UK). This is

one of the main reasons why Chashni should consider entering the UK market.

Figure 1. Sales value of sweets in selected European countries (Statista, 2022)

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Demographic Segmentation
Starting off with demographic segmentation, Chashni's consumer profile will be direct

customers. B2C consumers would be served by Chashni. Customers who would consume Chashni

mithai would be young people who would prefer the nutritional value that comes with the intake

of sweets by offering sugar-free mithai. Adults who relate mithai consumption with tradition and

heritage will be able to choose from a wide array of traditional sweets. Furthermore, our customer

will fall within SEC A and B, as these are the groups that consumethe most sweets in the UK.

Apart from that, Chashni's end users would be people who love sweets to be distributed at

weddings and Eid celebrations. For such clientele, Chashni creates personalized mithai boxes.

Psychographic & Geographic Segmentation

Moving on to psychographic and geographic segmentation, London has the largest

Pakistani population in the UK and has higher per capita average sweets consumption than cities

such as Bristol, Manchester, and Edinburgh. Aside from that, there has been a growth in sweets

consumption in the United Kingdom due to a range of societal, economic, and legal causes. An

increase in household income is also included. As the population of London becomes wealthier,

their spending power rises, resulting in an increase in sweets and mithai consumption. Sweets play

a vital role in people's lives; no celebration or celebration is complete without them, hence people

are willing to pay a premium for high-quality sweets. People relate sweets with ethnicity, custom,

and heritage, which is the main cause for increased sweet intake. Pakistanis are culturally rich

people who desire to preserve their culture's rituals; hence mithai is a sensitive topic for them.

Chashni mithai’s target audience prioritizes nutrition over convenience and they also prioritize

quality over price.

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Profile of competitive market

Sweet shops in UK have been operating since decades now. There are many big brands

present in the big cities and there are many more local stores in smaller areas. There is monopolistic

competition in this industry between the competitors.

The local shops are usually operated by households and have an advantage in their local

areas because of a close relationship with the neighborhood. They have a price advantage as well

in comparison with the bigger brands. They also provide with a high quality product but they

lack behind in tastes, variety, aesthetics and sometimes hygiene. They lack in aesthetics because

of small shops that aren’t designed well as well as the product packaging is very generic.

Since we will be starting our operations in large cities like Birmingham, Manchester with

our first branch in London. Here bigger brands are present which provide best quality, amazing

tastes, utmost hygiene and great aesthetics. These big brands will be the major competitors for

chashni. These brands include Nirala sweets, Gupta Sweets, Royal Sweets and Pooja sweet and

savories. All of these lie in the premium segment where chashni will be trying to penetrate.These

brands have a stronghold because of being present for years already and having the best products

overall. Whenever a person looking for desi sweets wants them in the premium segment for normal

use, gifts and events these brands come up as the first option. We will have a tough competition

and difficulty in breaking through.

Nirala

Nirala sweets is a legacy brand that had been operating in Pakistan from 1948. They were

the country’s favorite for years and whoever moved from Pakistan to the UK would have nirala as

their first option in UK as well. They don’t have to spend much on marketing as it is already a

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well-known brand and people buy from them regardless. The taste of the products is good and

familiar which gives them an advantage. They have premium pricing as well and people are more

than willing to pay. It is a Pakistani brand so in competition with other premium brands owned by

Indians it becomes a first option for Pakistanis in that sense as well. They have limitedvariety in

sweets but they compete in variety because of diversifying in other food products like channey,

chais, ghees and some masalas.

Gupta Sweets

Guptas is another brand that has been present in the UK for decades. It opened in 1979 in

London and expanded throughout the UK. It is one of the first movers in this industry in the UK

and has an advantage because of being the first movers and first option. They focus on promotion

a lot and target events like Holi and Eid usually. Their product is famous and has beenreviewed

and featured on BBC, Timeout London and many more. They have premium pricing and their

pricing is justifiable in the eyes of the customer. They have an advantage because of the many

stores they have in UK and 3 stores in London alone. They provide delivery throughout the UK.

You can order on call as well as on their website which is a competitive advantage theyhave

over the competitors. They have variety but limited because of sweets only from India. They have

variety in other products with snacks like samosas.

Royal Sweets

Royal sweets were established in 1973 and is another one of the few first movers in UK

in this product category. Their focus on promotion is limited to social media now but is already so

popular it doesn’t need mass marketing. Their product is of very high quality and great taste. They

have variety of products from India in sweets but also a wider variety in snacks and street

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food from India and has a competitive advantage because of this unique variety as it is one of the

limited few who offer premium street food. Apart from this all of their food is halal in snacks

that not only include desi food but also Italian and Chinese. They sell ready meals, chutneys salads,

gluten free products and many more products adding to their product variety. It has its own stores

but also provide catering services with airlines being a major client.

Pooja sweets and savories

This company is one of the new entrants of the industry and have quickly became popular.

Their pricing is one of the highest in the industry. But from what we saw from reviews and articles

on the brand, the product is by far the best in UK right now and the premium pricing is one

customers don’t mind. Their marketing relied on word of mouth primarily but the products

superiority quickly made the brand gain popularity from word of mouth only.

Their variety includes Indian sweets as well as snack like samosas and chaats but also

nimkos which nobody provides in the premium segment. Their aesthetics aren’t the best in the

industry but the product makes up for all of it. They have only one branch in London which gives

them a disadvantage from competitors but its popularity is nationwide so people come to them

from different cities and try to order it to their cities.

Buying Behavior and Market Size

The decision-making processes and actions of people who buy and use things are referred to

as buying habits. The following are the four types of customer purchasing behavior:

• Routine Response: buying low-involvement, low-cost things on a regular basis; requires

minimal search and decision work; purchased practically automatically.

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• Limited Decision Making: occasional goods purchases. Perhaps when you require

information about an unexpected brand in a recognized product area. Information gathering

takes a reasonable amount of time.

• Extensive Decision Making: high Involvement, unknown, expensive or rarely purchased

products. Spend a significant amount of time gathering information and making decisions.

• Impulse buying: no deliberate planning for buying a product.

In 2016, a market research agency conducted an online survey of 699 UK customers from all

major grocery store retailers (Confectionery & Snacks, n.d.). Sugar confectionery was in the top

ten (seventh) of store purchases where consumption is expected 'out of house,' according to

Shopper Intelligence. According to the survey, the majority of respondents (35%) bought sugar

confectionery to take home and consume later, compared to only 24% who claimed they ate it on

the day of purchase. So according Shopper Intelligence, the majority of people (53 %) planned to

buy sugar confectionery before going to the store. Around 46% of people bought sweets on

impulse, making it the seventh most impulsive category in the store. 18 % of those who planned

to buy sugar sweets intended to buy a specific brand, indicating high levels of loyalty and an 85%

conversion rate. Promotions enticed those who bought on impulse (32%). The majority (40%) buys

sugar sweets for themselves, but many (11%) buy for their children, which is significantly greater

than the 4% average across all retail categories (Confectionery & Snacks, n.d.).

Talking about the Corona pandemic, during that 61% of customers adjusted their sweets

buying habits. Around 41% bought more value packs and individually packaged items, while the

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number of households who bought sweets online at least twice increased by 76%. Per person, total

internet spending increased by 14.3 percent.

UK consumers spent 13.6 billion British pounds on ice cream, candy, and sugar. In recent

years, spending has increased. In 2022, the confectionery segment will generate US$16.08 billion

in revenue. The market is predicted to expand by 1.44 percent every year (CAGR 2022- 2027). In

terms of global revenue, the United States (US$178.70 billion in 2022) generates the most. In

2022, per person income of US$234.70 will be collected based on total population figures. By

2027, volume in the confectionery industry is predicted to reach 1,522.8mkg. In 2023, volume

growth in the confectionery segment is predicted to be 0.8 percent. In 2022, the average volume

per person in the Confectionery industry is predicted to be 22.6kg (Neiburg, 2017).

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Export Marketing Plan Recommendations

Product

Chashni offers a wide range of sweets that have been meticulously chosen using healthy

ingredients such as desi ghee. The sweets not only pay homage to the illustrious history, but they're

also made to the highest international quality and sanitary standards. Chashni puts quality as the

utmost priority of their product. Unlike other competitors the packaging of the products includes

the date the product was created and how long it is best to consume which is usually 2-3days to

maintain freshness as preservatives are not added.

Furthermore, they have the expertise to manage expectations and follow the strictest of

SOPs to provide with the highest quality of products to the customers. A staff of qualityassurance

official’s records and monitors all aspects of the export process, including quality and hygiene

regulations, paperwork, and other export processes.

The standardized procedure lets Chashni to offer the high quality value-added sweets

across geographical boundaries. However, certain aspects of the products need adaptation.

Packaging would be labelled in English and French, which is London’s most widely spoken

languages, to provide greater ease for customers. European customers are influenced by price,

seeing imported items as more cheap, and there is still a need for high-quality imported goods

made by well-known brands (Aorere, 2020). Chashni is certified by ISO 22000, S.A.N.H.A and

UKAS and these certifications will be mentioned on the packaging in order to establish client

confidence and assure them of the mithai's quality.

With respect to our product, service features are limited, if any, and so will not require

much alteration. We'll market the mithai as the best in terms of quality, sweetness, richness, and

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hygiene standards. The promise is to provide an international quality and hygienic mithai products

from Pakistan, produced under strict hygiene standards using the most contemporary and advanced

equipment. This allows Chashni to keep its competitive position as Pakistan's major exporter of

mithai and sweets.

Distribution
The confectionery business, among other sectors, is one of the most coordinated and well-

developed in the world, and it has become an attractive investment destination, with several

significant global corporations joining the market. Chashni will use the built-in department's direct

exporting distribution channel. It is the simplest structure to create and maintain. Establishing an

export department at Chashni's company is necessary for direct marketing, and with the support of

an export sales manager, they will be able to handle all export-related tasks such as logistics, credit,

and advertising.

There are many factors that influence the choice of the channel design. The decision of

directly exporting the mithai to UK is influenced by the following factors. The product we are

exporting is a perishable product and thus is required to reach the customers as soon as possible to

maintain the freshness. Chashni has its own transportation fleet and ensures the freshness of the

sweets by exporting them in their own refrigerated containers.

United Kingdom has a consumer market that is more inclined towards buying from direct

outlets for the top quality food products and safety concerns. As the sweets are to be sold through

our direct outlet, direct export will be more feasible in order to provide the premium quality meat

on time. Exporting directly would allow Chashni to have more control over the distribution of

the goods because it has its own transportation fleet of refrigerated containers (Agarwal, 2014). It

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employs the same distribution network in other nations where it is already exporting (UAE), giving

it years of expertise in the field.

The ease of having a transportation fleet minimizes the risk of not being able to find a

middleman. (Singh, 2012). Thus, Chashni enjoys exporting directly this saves money and time

by eliminating the need to recruit and hire an appropriate intermediary or agent.

Moreover, our Chashni outlet in London will have an in house delivery service all across

London and will hire a third party delivery service for deliveries outside London. According to

current estimates, the 'grey' market for bearings amounts for between 12% and 15% of overall

bearing sales in the UK (UK ‘grey’ Market For Bearings Puts End Users And Distributors At Risk,

2022). A burgeoning grey market not only makes it easier for counterfeit items to reach the market,

but it also puts end users and distributors at risk of costly breakdowns, lawsuits, and invalid

warranties.

Nonetheless, it is concerning that roughly 15% of all bearings in the UK are nowobtained

through the 'grey' market, which refers to any bearing transaction that is not made directly from

the manufacturer or through an authorized distributor (UK ‘grey’ Market For Bearings Puts End

Users And Distributors At Risk, 2022). For example, the Internet has increased the opportunity

(and risks) for buyers to acquire bearings made in India, the Far East, and Africa but sold by

unlicensed dealers all over the world, including an increasing number of European stores.

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Price
Determining prices for an export product is a difficult issue for any firm because it entails

several additional expenditures, such as taxes, as well as determining the appropriate transfer cost.

The price of the exporting product should be lower than the price competitors’ offerings in the

country to which it is being exported, or it should have more value to justify higher prices, but

in any case, the transfer cost should cover the variable cost per unit and the contribution margin of

lost sales in order to achieve the optimal price of the exported product.

When it comes to exporting Chashni to the United Kingdom, it is certain that demand

exceeds supply, but the exporting company must compete with a variety of other exporting

companies. It is possible that the home country concentrates and focuses on ways that allow it to

offer lower pricing by facilitating the firm's supply of the product to various areas within the

country to which the product is exported.

To determine the pricing for Chashni, it would be important to take the following factors

under consideration:

• The landed cost when Chashni sweet will be available to the buyer’s door step in London

• Value of tariffs and taxes levied on such export

• Shipment’s CIF Value by adding up the amounts

This is why Chashni sweets are much likely to be expensive than its competitors because

all the above mentioned costs need to be covered. Chashni, therefore, would be implementing a

premium pricing model. Readymade sweets and customized boxes will have different pricing and

three models will be initially set up based upon their size/weight as follows:

• 250 grams: Three pounds

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• 500grams: Six pounds

• 1 kilo gram: 9 pounds

For all desi sweets like ladus, gulab jamun, chum chum, barfi, patteesa, a standard princing

will be followed. Pricing for desi sweets that are high end in nature will tend to have a slightly

expensive prices with respect to the above mentioned.

For customized boxes, prices will vary depending upon the size and types of mithai’s chosen

in each box.

Gift boxes and mithai thali’s will both have separate pricing ranges that are as follows:

• Customized boxes (per kilogram): 12 pounds

• Mithai Thali’s/Assorted Tin Boxes (per kilogram): 20 pounds

These prices will act as a tentative module that may be subject to changes with respect to the

demand and changing export conditions.

Promotion
In the United Kingdom market, promoting Chashni is essential since we need to establish

a brand for ourselves and fight established competitors like Mithai Ghar Limited situated in

London. To advertise in the United Kingdom, Chashni must first secure a license. Our brand's

online presence would be important to the success of our goods in the UK market. A website will

be created that focuses specifically on UK consumers by offering them sweets that are not available

in any other part of the world. In its initial stages, it has to give freebies and bundle offers in order

to attract a large number of consumers.

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Advertising and sales promotion are the most significant elements of the promotional

mix. In order to promote our product, we must use a pull approach in the early phases and persuade

a potential buyer in London, United Kingdom to give it a try. When purchasingsomething

for the first time, people normally appreciate discounts. We would offer discounts to our goods to

make the initial purchase of Chashni Mithai more profitable. Bundle discounts would be applied

based on a UK consumer's sweets consumption.

The visual element is key for capturing your customer's attention and making them seek

Chashni's range of mithai. While posting on Instagram can help us attract customers, social

media marketing can only get us so far. Chashni needs physical marketing items to draw clients to

its store and make their visit more enjoyable. Chashni can design a memorable business card that

conveys the quality and flavor of its mithai. Custom gift cards are an excellent method to encourage

people to visit Chashni and purchase our products. We can customize gift cards in the same way

that we can customize business cards. We want clients to see our gift cards and be attracted to buy

them, keeping our main purpose in mind.

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confectionery-products-europe/

Aorere, M. (2020). Food Purchasing Trends among Consumers in the UK and Europe - 21
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Confectionery & Snacks. (n.d.). Retrieved from statista.com:

https://www.statista.com/outlook/cmo/food/confectionery-snacks/worldwide#volume

Du, J., & Shepotylo, O. (2021). UK trade in the time of COVID- 19: A review. The World
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Khan, M. A. (2019). Covid-19 and Pakistan's Trade. International Trade and Corporation.

Neiburg, O. (2017). Sugar confectionary in top 10 grocery categories consumed out of home.
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Trade & Investment Factsheets. (n.d.). Retrieved from

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