Principles Of Marketing

Presented By:
Haleema Inam
Moomal Sara
Kanza Rashid
Atta Ilahi
Shadab Mughal
Arifa Khalil
Jibran Qureshi
 Company Profile
 Fauji Cereals, a fully owned Project of Fauji Foundation

 It was incorporated as a Public Limited Company in 1954

and initially started its operations in collaboration with
Quaker Oats England

 Fauji is a comprehensive enterprise that specializes in

processing, packing, trading of cereals, and foodstuffs

 Fauji offers the best product, quality and more

competitive price to the customer
 Mission, Vision, Objective

Fauji Vision is to be the leading food company in

Pakistan by providing consumers with healthy food at
affordable price
Fauji focuses on bringing our best to consumers each
day
We strive to operate our company on a sound
financial basis of profitable growth and increasing
value for the firm and creating career opportunities
and financial rewards for our employees
Product
Product Name: Fit Bite

Available flavors: Chocolate and Strawberry.

 Product Objectives & Strategy
 Objective: To provide the consumer with high
quality, healthy and stomach filling breakfast with
nutritional benefits and which provides excellent
health and strong body.
 To create a high and premium quality product that
offers the best alternative to consumers in
comparison to other brands in terms of health.
 To emphasize the key benefit of the product
i.e. .health and fitness. Our breakfast bar offers
stomach filing and healthy breakfast especially for
people with hectic and tight schedule.
 Marketing Objectives

Capture Market share up to 3% in the first

year

Second year we intend to capture 5%

 Market Situation
Breakfast products are one of the most competitive
categories of consumer products.
 Karachi’s current population is13million
The city's population is estimated to be growing at
about 5% per year
On the basis of the population rise we can state that
the breakfast market is increasing in size since
increasing number of people consume food.
 Competitor Analysis
DIRECT COMPETITION

Our direct competitor continues to be Kellogg’s which is a

global market leader and upcoming brands like Nestle,
Quaker Oats, General Mills cannot be ignored.
INDIRECT COMPETITION

The Indirect competition consists of alternative breakfast

options that include Scrambled Eggs, Halwa Puri,
Biscuits, Sandwiches and Fresh Fruit.
MARKET SHARE

Fauji= 70%, Kellogg's= 20%, Nestle= 5%, Weetabix= 3%,

POST= 2%
Industrial Characteristics
The ready-to-eat (RTE) cereal industry is characterized
by high concentration, high price cost margins, large
advertising & introduction of new products
The cereal industry can be segmented into ready-to-eat
(RTE) cereals (cold cereals) and hot cereals.
The latter sector includes both traditional porridge oats
and the newer `instant' varieties.
Breakfast cereals can also be classified by category of
product, i.e. staples, children's, health, adult indulgence
and muesli.
The brand enjoys a clear-cut market leadership position
in Wheat and Barley Porridge with over 70% market
share.
The brand enjoys a clear-cut market
leadership position in Flakes with over 80%
market share.

Globally, the cereal industry is an oligopoly

with four large companies and a few very small
niche companies.
The breakfast cereal industry has
gross profit margins of 40-45%
DIRECT COMPETITORS

INDIRECT COMPETITORS
Market Segmentation
The market for Fit Bite breakfast Bar holds
many different sets of buyers coming from
different demographic, cultural and
psychological backgrounds
Healthylicious Breakfast Bar’s market can be
segmented on the basis of three categories:
 Children and youngsters
 Working men and women
 Health conscious people
MARKET SEGMENTATION

Health freaks Live to eat Eat to live

Age group 30-60 25-30 15-24

Income 150000 and above 40000-70000 15000-25000

Lifestyle High living Status Oriented economical

standard
Demographics Upper class Upper middle class Middle class

Purchase behavior Frequent buyer Twice in a week They don’t really

bother
SWOT
 STRENGTHS
 Breakfast bars are suited to modern eating trends.

 Breakfast bars are now more popular amongst

consumers specially the younger generation.

 We will use existing grocers as channels of distribution for

chomp fit bite.

 Our pricing strategy is below most of the competition,

giving fit bite a competitive edge with consumers looking
in terms of value.
The company has a sound finacial base because it
has 70% market share as shown below at competitor
market Share table.

Experienced and skilled staff because we will be

using our previous staff. We will not be hiring
&training the new one.

The first locally produced breakfast bar to promote

general health in the market.

A new and a better brand image can help attract more

sales.
 Weaknesses
The taste is not so good as compared to our
competitors because meal replacement bars cannot be
sweet like corn flakes.

People may take time to adapt it initially because the

industry of meal replacement bars is not common in
Pakistan.

Product if it doesn’t meet customer demands, will most

probably fail to succeed and might not meet the positive
return on investment in terms of revenues
 Opportunities
First locally produced breakfast bar
Plenty of space for more growth in the market.
Consumer demand for healthier food
A new and a better brand image can help attract more
sales
Breakfast market and industry is growing
continuously
Lack of quality products in the local cereal industry
Export Market
 Threats
Overcrowding in the market could cause sales
to fall
Product may not meet customer demands
Might not meet the positive return on
investment in terms of revenues
Competition might entrench our differential
advantage
Other strong and competitive brands in the
market
 Marketing Strategy
The aim of this strategy is to concentrate
efforts towards acquiring a good number of
buyers by converting consumers into
healthy eating individuals, through the
Mass Media.
 PRODUCT Positioning

 Features: It is a complete breakfast for all age groups; it

provides all the attributes present in other breakfast
products
 Design: It is attractively designed. Available in 3 different
flavors.
 Product Positioning: To provide with a convenient source
of a healthy and nutritious breakfast.
 Price
Objective: The price of an item is clearly an important
determinant of the value of sales made. In theory,
price is really determined by the discovery of what
customers perceive is the value of the item on sale
Pricing Method: the strategy which we are going to
use in order to sell Fit Bite under the brand name of
Fauji cereals is the penetration pricing strategy so
that our product can grab the market share of other
local brands like of nestle and imported breakfast
cereals like Kellogg's
Pricing strategy: Competitive Pricing
 Price Break Up And Cost Distribution For
Healthylicious

Category Percentage Rs.

Raw Material 38% 31.54
Overheads 6% 4.98
Administration Expense 6% 4.98
Promotion Expense 40% 33.20
Profit Margin 10% 8.30
  100% 83
Sales Tax 21% 17.43
Price after Sales Tax 100.43
 PLACEMENT
 Fit Bite will be made available to all major Superstores,
Supermarkets, and Convenience stores initially in Karachi
only. As Healthylicious will be operating and manufacturing
in Pakistan, therefore, we have outsourced its distribution to
PTN (Perfect Transport Network) which is one of the largest
and trusted distribution networks of Pakistan.

Regions General/Medical General Stores Large Stores Bakeries Total

Stores

Karachi 4,292 19,802 642 190 24,926

 Distribution Channel
•People involved in distribution will be Manufacturer(Fauji), Wholesaler,
Retailer, Distributor
•We will have three distribution channels as shown below
 Promotion
Promotion is how the business tells customers
that products are available and persuades them to
buy.
Promotional Objectives:
To successfully implement the product adoption
process in the selected target market
To differentiate Fit Bit on the basis of its characteristics
and quality.
To create brand loyalty
Increase in the product consumption and sales
To establish brand equity
 Continued..
Long Term Objectives
 Build loyal customers
 To make breakfast bar an in thing for status conscious
individuals
 To gain the highest market share
 Aim at profit maximization

• Short Term Objective

 To increase the market share by 3% every year.
 To increase sales of our new products.
 Providing our consumers with a broad line of our products
compared to companies with specialized lines
 Promotional Mix
Fit Bite will be promoted through the following
mediums and activities:
 Television Commercials
 News Paper and Magazines
 Radio Ad
 Billboard
 Free Sampling
Our promotional Budget is Rs 6,000,000
Media Type Percentage Amount (Rs)
Share
Television 10% 600,000
Commercials
News Paper 40% 2,400,000
Radio Ad 5% 300,000
Free Sampling 5% 300,000
Billboard 40% 2,400,000