2011

PRINCIPLE OF MARKETING

Report on HARDEES

Submitted by: Muhammad Yasir(12044) Rabia Aziz ( ) Saad Rizwani ( ) Submitted to:

Madam Farheen Razzak

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Table of Contents
Table of Contents.............................................................................................2 HARDEES COMPETITOR...............................................................................27 History.........................................................................................................27 In this Hardee's commercial, a man demonstrates one way to "shake" fresh milk. He proceeds to push and shake a cow in time to music. The commercial is designed to promote that Hardee's has milkshakes made with real ice cream. It aired when the shakes were a new item at Hardee's. ....................................................................................................................28 Video s on hardees.....................................................................................29 Disney :.......................................................................................................29 http://www.youtube.com/watch?v=PSk1cElSaIo.........................................29 breakfast.....................................................................................................29 http://www.youtube.com/watch?v=eKMn3No2ics (86).............................29 http://www.youtube.com/watch?v=h92320ondQ8.....................................29 cheese:.......................................................................................................29 http://www.youtube.com/watch?v=MPRSwO8Ft6A.....................................29 product :.....................................................................................................29 http://www.youtube.com/watch? v=0mqRlWB3V1M&feature=autoplay&list=PL0404BD05838F1590&lf=resul ts_main&playnext=4...................................................................................29 case :..........................................................................................................29 http://www.youtube.com/watch?v=s989ux-qaNM ....................................................................................................................29 Hardees on net :.........................................................................................30 Twitter :.......................................................................................................30 http://twitter.com/Hardees..........................................................................30 2 | Page

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facebook world............................................................................................30 http://www.facebook.com/Hardees?sk=wall...............................................30 facebook karachi.........................................................................................30 http://www.facebook.com/hardeeees.karachi.............................................30

LETTER OF AUTHORIZATION
MUHAMMAD YASIR SALEEM (12044) RABIA AZIZ GABOL () SAAD RIZWANI ()

December 13, 2011 Please refer to your initial proposal for understanding the study on , HARDEES. In the view of subsequent meetings and discussions the initial proposal was finalized. Kindly initiate the study on the finalized Terms of Reference (TOR).

MS FARHEEN RAZZAK (Course instructor) 3 | Page

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LETTER OF TRANSMITTAL
Date: To: From: Subject: DECEMBER 13, 2011 MS FARHEEN RAZZAK M. YASIR SALEEM , RABIA AZIZ , SAAD RIZWANI HARDEES

We feel glad to submit the Marketing report of HARDEES. The study included the primary and secondary research. The primary research was mainly based on the interviews whereas secondary research is mostly based on the articles and empirical studies about the organization and its respective product. The report covers a wide array of topics and core concepts of marketing, ranging from the situation analysis, the current business practice, and the recommendations on our part. 4 | Page

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We are grateful to our course instructor for guiding us in completing this term report. Her enthusiasm and support contributed greatly to the success of this term report. Thank you for allowing us the opportunity to work on the report and to learn how the marketing concepts have their pragmatic applications.

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ACKNOWLEDGEMENTS
Firstly, we would like to express our most humble gratitude to God who endowed us with knowledge, patience and courage in the accomplishment of our task. We would like to thank MS FARHEEN RAZZAK , our course instructor, whose words of wisdom helped throughout the semester, and especially when preparing for this report, and whose versatile knowledge and unique teaching styles have developed our knowledge and cleared the Marketing concepts. We would also like to extend our appreciation to the following individuals who took some valuable time out to part significant knowledge in relation to the communication strategies and also spent constructive efforts to explain the intricacies and relevant points involved in the compilation of this report.

Mr. Syed Mohsin Mahomed Ali Senior Brand Manager Reckitt Benckiser Pakistan Limited. Ms Maham Zahid Internee/Student Iobm. (IS JAGA HARDEES KI INFO AYEGI)

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SITUATIONAL ANALYSIS:

History:

Nature, Objective and Strategies Of The Business: Companys Vision: Values of Reckitt Benckiser:
1. Achievement : . 2. Entrepreneurship :

3. Teamwork :

4. Commitment:

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Company:

MICRO ENVIRONMENT:

The key executives of HARDEES are(YEH SAB HAT K HARDEES KI INFO AYEGI ) 1. Mr. Sabir sami (Chief Executive officer) 2. Mr. Colin day (Chief financial Officer 3. Mr. Freddy Casper (Executive vice president of category development) 4. Mr. Alian Le Goff (ExecutiveVice president of supply) 5. Mr. Ken McKensey (Executive vice president of Americas) Its main office is located in Karachi at,(HARDEES KHI ADDRESS)
11th Floor, State Life Building No. 11 Abdullah Haroon Road G P O Box 625 Karachi 74400 Pakistan.

Supply Chain:

They treat their suppliers as partner in creating and delivering customer value because RB believes that good relationship with suppliers result in success for not only RB and its suppliers but also to its customers. They also believe in giving important feedback that their supplier improves their performance.

Intermediaries:

Reckitt Benckiser use market intermediaries to sell promote and distribute its products to final buyers because,

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1. They focus on their core competence that is production of health and home care products etc. 2. Wide spread global operation of RB prevents the company from creating direct relationship with their customers or final consumers The detail of current market intermediaries are as follows. Approx 80 national distributors Approx 50 60 sub regional distributors Approx 50,000 global outlets Approx 25,000 power outlets

Customers:

Out of the 5 customer markets RB focuses on Consumer Markets which is individual and households that buy goods and services for their personal consumption.

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PRODUCT PROFILE:
Reckitt Benckisers Brands: HEALTH CARE Nurofen Lysol Strepsils Delsym Lemsip Dettol Boots E45 Gaviscon Theraflu Bonjela HOUSE CARE Saniflush Glass plus Cillit Bang Vanish Henkil S.C.Johnson & Son Calgon Harpic Aerogard Mr Sheen Vivid Chore Boy FABRIC CARE Woolite Robin Blue FOOD ITEM French's Frank's Red Hot JIF Freedom Fires Potato chips PERSONA L CARE Veet Clearasil

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POWER BRANDS:

LEVELS OF PRODUCT DEVELOPMENT:

CORE PRODUCT:

Robin Blue serves its customer with value and integrity that enables them retain their self esteem in their social circle. It also offers its customer a sense of respect by retaining the whiteness and cleanliness for a longer span of time in their outfits. At a very nominal price Robin Blue deliver its customers everything which guarantees them respect and social belonging.

ACTUAL PRODUCT:

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NAME Robin Blue Liquid Robin Blue Liquid Robin Blue Liquid New Robin Liquid Bleach New Fragrant Bleach

COLOUR Blue Blue Blue Blue Blue

WEIGHT 75ml 150ml 300ml 500ml 500ml

PRICE (Rs) Rs22/Rs35/Rs55/Rs59/Rs65/-

AUGMENTED PRODUCT:

Robin Blue gives the surety of pure whiteness to its customers by using just a few drops of it. As Robin Blue is used by diluting it in the water, the only one dip of the cloth ensures instant whiteness. The instructions given at the back of all Robin Blue packets regarding how to use the product enables the customer to use the product in most effective manner.

Every product packet contains complete address, contact number and email address, for feedback and suggestions and anomalies regarding use (if any).

COMPETITIVE ANALYSIS:

Brand Competition:

Currently Robin blue, a product of Reckitt Benckiser, is facing a brand competition with king Chamak, a product of Diamond Impex Corporation. In 2008, DIC introduced King Chamak in the market. King Chamak is not that much successful in the market. It was a flop product because they didnt emphasize on creating awareness in the market and also due to low budgets they only manage to capture 2% of the overall market share. 12 | P a g e

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In past, Robin blue also faced a brand competition from Counterfeit brands like Blue bird.

Industry & Form Competition:

INDUSTRY COMPETITOR FORM COMPETITOR

Procter and Gamble Unilever Pakistan

Ariel Rin Surf Excel

Colgate Palmolive

Brite Total Bonus

BCG MATRIX:

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M a r k e t

Growth Rate:

The growth rate of Robin Blue is 0% because of the availability of vast variety of detergents that are giving surety of whitening of cloths Robin blue has become a traditional product which is now using only by laggards.

Relative Market Share:

The relative market share of Robin blue is only 7%. Because of the low market growth rate and relative market share Robin Blue is considered as a DOG product in BCG Matrix.

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PROFIT LIFE CYCLE (PLC):

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REASON FOR LAUNCHING ROBIN BLUE:

In past surfs and detergents were not available...it was becoming very difficult and irritating for women of that time to get rid of rigid and stubborn yellow marks and stains from white clothes (Formal, casual).

The need generated with full research:

There are schools, colleges who demand there students to have clean, white and smart dressing...it made their institute look nice and gave the child a feeling of responsibility and fresh feeling. Other than schools, offices and official gatherings created a hike of flawless and perfectly white collar shirts for men. This made them look and feel great during work time. As the product didnt harm other rainbow colors, it was feasible for women to get extra whiteness using robin blue and not scrubbing and wasting their energy with soaps. During that time soaps were widely used, which consumes a lot of time and energy. Innovators were desperately waiting for a product which made their lives easier. Hence it took no time for robin blue to enter consumer houses and gives them a better life.

TARGET MARKET:

According to the culture of Pakistan the females are dominant for household works. In Pakistan most of the women remain at home as our religion and culture dont allow women to go outside home but still some women are working outside in order to feed their families. Keeping the above differences in mind, Reckitt Benckiser launched such a product for the household women that made their life easy. As most of the men demands for the whiteness and stainless cloth, Robin Blue didnt only fulfill the demands of the men but also helped women to give cloth original and instant whiteness because in the previous years not many of the detergents were available in the market that ensures the whiteness of the cloth and if some do then the cloth gets torn very early as they use harmful chemicals. In the early years women had to keep on scrubbing the cloth and sometimes they had to wash the cloth two times to get rid off stains and to get the whiteness that includes much of the energy, time and cost (by using more of the soaps). Robin Blue target this market of household/housewives because the major problem of women was to give their mens the best as they have emotional bonding with them. 16 | P a g e

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Robin blue captured the market very instantly in the beginning by proper advertising and promotional activities. By introducing the product with quality, Robin blue captured most of the market in no time. This product not only gives the ease and satisfaction to women but a confidence to a man also.

MAJOR SEGMENTATION VARIABLES

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GEOGRAPHIC World region or country Country region Population (Country/city) Climate DEMOGRAPHIC Age Gender Family size family life-cycle income Occupation Religion Race Generation Nationality PSYCHOGRAPHIC Social class Life style Personality BEHAVIORAL Occasions Benefits Loyalty Status Attitude towards 19 | P aproduct ge

Pakistan South Asia 180000000+/ 20000000+ Moderate 2555 Female 2-5+ Married Rs15,000-50,000 Service and self employed personals Muslim, Hindu, catholic, others Asian Baby Boomers and Generation X Pakistani upper lowers, working class, middle class, upper middles. Achievers and strivers Compulsive and authoritarian Regular occasions Convenience, Quality and economy Strong Positive or Indifferent (occasionally)

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POSITIONING STATEMENT:

The position of Robin Blue in the minds of consumers (Laggards) is that it is the only one which provides the original whiteness to their cloths and not harms the cloth as well as the skin. It contains the chemicals which are harmless. It has most of the customers trust that it is easy to use and that it provides the original whiteness to their clothes not the fake whiteness that remains only for the short period of time.

PLACE STRATEGY:

Vertical Marketing System:

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Distributor:
Major distribution cities of Pakistan are, Karachi Hyderabad Sukkur Lahore Multan Islamabad Quetta 23 Approx 07 Approx 4 Approx 17 Approx 12 Approx 12 Approx 5 Approx

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Sub Distributors:
Karachi Hyderabad Sukkur Karachi Lahore Hyderabad Multan Sukkur Islamabad Quetta Lahore Multan Islamabad Quetta 20 Approx 02 Approx 02 Approx 15,000 Approx 12 Approx 1,000 Approx 06 Approx 500 Approx 06 Approx 02 Approx 5,000 Approx 2,500 Approx 3,000 Approx 500 Approx

Retailers:

DISTRIBUTION STRATEGY:

Reckitt Benckisers Channel strategy is to use intensive distribution A strategy in which they stock their product in as many outlets as possible. These products must be available where and when consumer wants them because they consider themselves producer of convenience goods.

PERCEPTUAL MAPING:

Perceptual Maps are widely used tools in marketing that provide a visual representation of customer perceptions towards objects (products, brands or companies), and how these are positioned in the marketplace. We must remember that perceptual maps are plotted on the basis of someones perception about quality and price which may differ from person to person. 22 | P a g e

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Robin Blue is a high quality and low price product because when we compare this product with the available substitutes (detergents) we found it to be less costly and can be used for a long time as only few drops of Robin blue provides the cloth pure brightness/whiteness. This is a quality product because it is user friendly as it doesnt harm the users hand as well as Fabrics.

ESTIMATE SIZE OF THE MARKET:

To estimate size or total market demand we use this formula.

Q=n*a*p

Where, Q = Total market demand, n = No. of buyers, 23 | P a g e

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a = Quantity purchased by an average buyer per year, p = Price of an average unit. Karachi Hyderabad Sukkur Lahore Multan Islamabad Quetta Total Population 20,052,000 3,000,000 675,000 15,000,000 1,606,481 3,941,372 1,140,000 48,666,976

Total buyers (n) are approximately 9% of the total population.(48,666,976 * 9% = 4,380,028. Average consumption (a) is approximately six bottles (150ml) per year.

Q=n*a Q = 4380028 * 6 Q = 26,280,168 (total market in units

Average price (p) per unit is Rs. 35 (150ml).

Q = 4,380,028 * 6 * 35 Q = 919,805,880 (total market in rupees)

PRICING STRATEGY:

Markup or Cost plus Pricing Method: S.P ( 1 desired return on sale in %) = C.P

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Distribution Channels Producer Distributor Wholesaler Retailer Government Final Consumer

Desired Return on sale in % 8% 6% 3% 5% 17%

Cost Price 23 25.16 26.77 27.6 29.05 35

CRITICAL ANALYSIS:

Robin blue was initially the king of all cloth whiteners; it introduced spotless and as said ultra whitening to clothes. Before, the introduction of other surfs and detergents who are offering clothe whiteners, robin blue had the monopoly over the market. But as time passed, it is now followed only by the laggards.

Company View: With the passage of time and with the increase in the competition in whitening and detergents market Reckitt Benckiser opted to not to compete with the other brands and thus it resorted to cut down in its promotional activities with respect to its product Robin blue. However as stated above the product Robin blue gave the company a constant return figures attributable to the laggards who kept on purchasing separate whitener (Robin blue) over other detergents.

Recommendation:

Our team conducted a research on robin blue and is affirmative that robin blue still has a chance in the market. With a lot of thought and intense consideration we are of the view 25 | P a g e

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that Reckitt Benckiser should launch Robin blue not just as a whitener but as a detergent too. For that purpose they should introduce a new detergent named Robin Clear Blue in the market.

Target Market: For its new marketing approach Reckitt Benckiser should focus mainly on target market which includes housewives, bachelors and commercial users (Dry Cleaners).

Marketing Strategies:

1. Product: The Company should introduce the product in three different weightings ranging as 250mg, 500mg and 1kg. The color of the product should have the combination of blue and white in order to remind the target market of Robin Blue. 2. Promotion: Reckitt Benckiser should vitalize its communication plan by investing more in the following categories.

Above the line activities (ATL):

Television Commercials Radio, Print Media (news papers etc) Out of home activities Digital (Mobile marketing)

Below the line activities (BTL): Door to door selling Word of mouth publicity

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Free sampling

3. Place: The product should be introduced in the same seven major regions in Pakistan i.e. Karachi, Lahore, Multan, Sukkur, Quetta, Islamabad and Hyderabad. It should also ensure that its product must be available in the market so that they have to do Intensive distribution.

HARDEES COMPETITOR Hardee's competitors are primarily in the Restaurants & Cafes industry. Hardee's competitive landscape includes:

Burger King McDonald's

Wendy's International, Inc.

History

A subsidiary of CKE Restaurants, Hardee's is a fast food chain located primarily in the Eastern and Southeastern United States. Along with its West Coast sibling, Carl's Jr.,Hardee's is the fourth largest fast food chain in the U.S.

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Hardee's and Carl's Jr. partnered with My Coke Rewards in May of 2010 to reward customers with double the prizes. The campaign launched on May 24 at Hardee's locations across the nation. The rewards consist of My Coke Rewards points and a peel-off coupon for redemption on the next Hardee's or Carl's Jr. visit to receive a free item or a discount. The purchase of a large fountain drink is necessary to receive the special promotional cup with the peel-off coupon and the points.1 Wilber Hardee opened the first Hardee's in Greenville, North Carolina in 1960. Within five months, he had his first franchisee. Today, the burger chain has spread throughout the Midwest and Southern United States. Known primarily for its biscuits, the company introduced the popular Thickburger line in 2003. Within the first decade Hardees grew to be nearly 200 locations, with one located inHeidelberg, Germany. The famous Hardee's biscuits were introduced in the '70s, with a cinnamon raisin version added during the popularity of the singing California raisins in the '80s. Hardee's was purchased by CKE Restaurants, Inc. in the 1990s.

*Company Background The first Hardees restaurant was opened by Wilber Hardee in Greenville, North Carolina in 1960. It wasn't long before he had his first franchisee, only a few months later. Over the years this burger chain has quickly spread throughout the Midwest and Southeast United States. In 1997 the franchise was acquired by CKE restaurants and has become a subsidiary to a much larger enterprise which is traded on the New York Stock Exchange (Hardees.com).

HARDEES ORIGINAL COMMERCIAL SHAKE VIDEO

http://www.youtube.com/watch?v=wq25qD44hC0
In this Hardee's commercial, a man demonstrates one way to "shake" fresh milk. He proceeds to push and shake a cow in time to music. The commercial is designed to promote that Hardee's has milkshakes made with real ice cream. It aired when the shakes were a new item at Hardee's.

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Video s on hardees Disney :

http://www.youtube.com/watch? v=PSk1cElSaIo
breakfast

http://www.youtube.com/watch? v=eKMn3No2ics (86) http://www.youtube.com/watch? v=h92320ondQ8

cheese:

http://www.youtube.com/watch? v=MPRSwO8Ft6A

product : http://www.youtube.com/watch? v=0mqRlWB3V1M&feature=autoplay&list= PL0404BD05838F1590&lf=results_main&pl aynext=4 case : http://www.youtube.com/watch?v=s989uxqaNM

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Hardees on net : Twitter : http://twitter.com/Hardees

facebook world http://www.facebook.com/Hardees?sk=wall facebook karachi http://www.facebook.com/hardeeees.karachi

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