50-50 Relaunch Report Updated 21 PDF

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50-50 Relaunch Report Updated 21...

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Marketing Report on:

50 50 Biscuit Re-launch

Submitted to: Sir Ali Abbas Mirza Presented by:

Muhammad Haroon Moten Waleed Masood Owais Rasheed Sabeen Thaveer Shahwez Yaqoob 21st -December-2017

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50 50 BISCUIT RE-LAUNCH

Acknowledgments In the name of Allah the most gracious and the most merciful, we would like to dedicate our humble efforts to our parents. A thousand words may not be enough to show our gratitude for what you have done for us.

We also deeply grateful to Sir Ali Abbas Mirza for giving us such a useful Assignment, which has helped us to improve our capabilities to understand the Marketing. The product, we chose not only provide us great learning, but abundant Knowledge also.

As the project advisor, it was his guidance, help and encouragement that lead to the Successful completion of this report. We would also like to thanks all those people, who have directly and indirectly helped us in providing the information; without. This help, the report would not have been in this presentable form.

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TABLE OF CONTENTS 1.

Executive Summary _______________________________________________5

2.

Company Description______________________________________________6

3.

Mission _________________________________________________________9

4.

Vision ___________________________________________________________9

5.

Goal ____________________________________________________________9

6.

Problem Overview _______________________________________________10

7.

Strategic Focus and plan ______________________________________10 - 13 Business Strategy Core Competency and Sustainable Competitive Advantage Ansoff Matrix Porter Generic Strategies

8.

Situation Analysis_____________________________________________13 -17 SWOT Analysis Strengths and Weaknesses External Opportunities and Threats

Industry Analysis Competitor Analysis (Porter 5 Forces Model) Company’s Analysis Customer’s Analysis (Segmentation) 9.

Market-Product Focus ________________________________________18 - 19 Reasons of failure Target Markets

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Points of Difference (POD) Positioning 10.

Marketing Program___________________________________________19 - 20 Marketing Mix Price Strategy Promotion Strategy Place (Distribution Strategy) BCG Matrix

11.

Organization_________________________________________________20 - 21

12.

Implementation & Evaluation _____________________________________21

13.

Conclusion _____________________________________________________22

14.

Recommendation _______________________________________________22

15.

Research Result And Analysis_____________________________________23

16.

Responses___________________________________________________24 -27

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EXECUTIVE SUMMARY This report represents an overview and introduction to Continental Biscuits Limited (CBL). Continental Biscuits Limited (CBL) was founded in 1984 following a Joint Venture between the family of Hasan Ali Khan and the Group Danone, the French food giants.

In the year 2007 Danone sold their biscuits category to Kraft Foods of USA. Today the company has a joint venture with Kraft Foods with a shareholding of 50.5% and 49.5% respectively.

For more than two decades CBL is engaged in the manufacturing and marketing of the brand LU. We have an array of products which are pre-eminent in the branded biscuit business both in Pakistan and abroad. Their unrivalled portfolio of brands has been meeting consumer needs for well over two decades and includes such favorites as TUC, Candi, Prince and Tiger. CBL produce some of the best known crackers, cream variants, plain and ingredient-based biscuits.

The manufacturing location based in Sukkur is a center of excellence which provides employment to 3000 people in the region. The marketing, sales, finance, commercial, IT and the human resources functions are located in the head office in Karachi employing a total of 200 employees.

As a part of the leading FMCG the head office has close links both with the Regional Offices of Kraft in UAE and manufacturing plant in Sukkur.

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COMPANY’S DESCRIPTION Incorporated in 1984, the success story of LU in Pakistan began with the initiative of Hasan Ali Khan (the founder of Continental Biscuits), who signed a joint venture agreement with Generale Biscuits, the global manufacturers of the LU range, which was subsequently acquired by the Danone Group.

Expansive investments were made including the import of technology and professional expertise from abroad. The first undertaking was to set up a factory and establish distribution centers in the country with the ultimate objective of commencing operations and marketing products in Pakistan.

CBL thus started its' operations in the country since September 1986 with an initial strength of 200 employees. The company first introduced its' innovative brands - TUC, Prince and Candi which proved to be an instant success.

With global merger of Generale Biscuit and the Danone Group, a more comprehensive range of products and technical know-how became available to CBL. The company at present has an outstanding portfolio, under its power brands of TUC, Prince, Tiger and Candi. These brands have an array of products that falls into the category of plain biscuits, cream variants, crackers and ingredients based.

Permissible Business Activities are to exclusively manufacture, buy, sell, export and deal only in food products comprising of biscuits, confectionary desserts, snack foods in Karachi and elsewhere in Pakistan & outside Pakistan.

CBL is a leading manufacturer of quality products in the branded biscuits category in Pakistan. It is the only company in the Pakistan biscuit industry which is ISO 9001, 14001 and OHSAS 18001 certified.

In order to support quality management, they have an agile quality control department

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where quality is ensured at all steps. From inspection of raw material to finished product, every critical processing is monitored by the QC team. The QC workings are in lined with the international standard specifications. The company is ISO 9001 certified.

The company has also received the certification from the international environment management system. Being an ISO 14001 company ensure that all our material, processes and waste are environment friendly and bio-degradable. CBL value supply chain and also educates suppliers on environment protection.

The products are manufactured under modern facilities in plant based in Sukkur. Owing to ongoing pursuit for innovations and focus on quality, continue to reinforce the value of brands.

CBL is managed by:



The Board of Directors



The Corporate Executive Committee

The Board is comprised of executive and non-executive directors from CBL and Kraft Foods, who are responsible for corporate governance and ultimately accountable for the company strategy, objectives and performance.

The Company Chairman of the Board and Managing Director is responsible for the management of the business and is assisted by the Corporate Executive Committee. Each member of the executive committee is responsible for a specific part of the business as well as the overall organizational performance.

Governance-Board of Director: Mr. Hasan Ali Khan Company Chairman of the Board and Managing Director Mrs. Sherood Hasan Ali Khan Reborn Marketing Plan Of 50 50 Biscuit

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Executive Director Hamid Flour Mills Mr. Alan Smith Director Integrated Supply Chain Middle East & General Manager Nabisco Arabia Mondelez International Mr. Hamid Ali Khan Executive Director Mr. Mohammad Junaid Pervez Chief Accountant/Company Secretary Hamid Flour Mills Limited Mr. Charles Martin Kane Finance Director (Cheese, Groceries & Beverages EEMEA) Mondelez International Ms. Saira Nishtar Chief Counsel Middle East Mondelez International Management Team's Profile

Mr. Hasan Ali Khan Company Chairman of the Board and Managing Director

Mr. Hamid Ali Khan Executive Director Mr. Saeed Babar Director Technical Col. Barkat Khan Khattak General Manager Administration & Security Mr. Naseem Rana General Manager Supply Chain

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COMPANY’S VISION STATEMENT CBL will become Pakistan's most preferred biscuit company by developing powerful consumer-loved local and global brands, maintaining world class manufacturing and quality standards, having superior quality and motivated employees and maximizing shareholder returns.

COMPANY’S MISSION STATEMENT To be a market leader in Pakistan Biscuit Industry in the next 5 years, ensuring every second biscuit consumed is proudly made by CBL.

COMPANY GOALS "We believe that to achieve our goals, the most important element of our strategy is to entice, retain, and ripen the best for our customers” Every organization has certain goals with its particular product. CBL also has this need of appreciation and popularity with its product “5050”. CBL want to attract the target market of “5050” by fulfilling their set of needs and this can be only possible if they expand their product line so as they will do. It’s the goal of CBL to increase the product line of “5050” as per the response they will get after the re-launch of “5050” in market. As, “5050” will expand its product line it will also try to increase its target market. Increase in sales will be done as per the response after the re-launch of “5050”, percentages will be decided later.

PROBLEM OVERVIEW Reborn Marketing Plan Of 50 50 Biscuit

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Continental Biscuit Ltd, is one of the largest and oldest biscuits manufacturers. They are in this business since 1984. The company has a wide range of products in biscuits i.e. (Gala, Candi, TUC, Tiger, Zeera Plus, Bakeri Butter, Prince, Bakeri Classic) which occupies more than 30% of the market share of biscuit industry. Past years 5050 is one of the major brands of biscuit of CBL. But with a period of time this brand is out from market due to its poor marketing communication strategy. We were instructed to integrate the marketing communication strategy of 5050 biscuit so that the brand can revive and recapture its market share and retain its position in the market.

STRATEGIC FOCUS AND PLAN Business Strategy: CBL's strategy is to be a leader in the biscuit business driving long-term sustainability and delivering sustainable performance for the company, environment and the community. This includes delivering consistently on our promise to consumers, serving our customers, developing and engaging actively with our employees, delivering superior financial results to our shareholders and minimizing our impact on the environment and interacting constructively with the communities in which they operate.

Core Competency and Sustainable Competitive Advantage:  Established in 1984 following a joint venture between family of Ali Hasan and DANONE group  Operation started in September 1986 with an initial strength of 200 employees  Joint venture with General Biscuits, the global manufactures of the LU range  More than TWO decades company using LU as a brand  30% market share, 5000 employees .

Ansoff Matrix: Reborn Marketing Plan Of 50 50 Biscuit

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The Ansoff Matrix is a business and corporate strategy model that describes 4 possible business growth strategies placed on 2 axes: products and markets. That is why it is also called product market matrix or product market grid.

Product Development Strategy: CBL is using Product Development Strategy for its product “5050”, which means that its re-launching its old product in existing market to capture the market by entering a product to attract its target market and deceive its competitors and to create a space between the competition level of yours and competitors’ And as we all know that products are always same from one point to another point, it’s the point of differentiation which makes a product unique and let it position in the mind of its market for years.

Porter Generic Strategies:

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Michael Porter has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage.

The Cost Leadership Strategy: Porter's generic strategies are ways of gaining competitive advantage – in other words, developing the "edge" that gets you the sale and takes it away from your competitors. The CBL increases profit by reducing costs, while charging industry-average prices. It also increases market share through charging lower prices, while still making a reasonable profit on each sale because of reduced costs. CBL is confident that it can achieve and maintain the number one position before choosing the Cost Leadership route. As it has: 

Access to the capital needed to invest in technology that will bring costs down.



Very efficient logistics.

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A low-cost base (labor, materials, facilities), and a way of sustainably cutting costs below those of other competitors.

The Differentiation Strategy:

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Differentiation involves making products different from and more attractive than those of your competitors. To make a success of a Differentiation strategy, CBL has chosen: 

Good research, development and innovation



The ability to deliver high-quality products

But CBL couldn’t maintain effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings. The Focus Strategy: CBL uses focus strategy and concentrated on particular niche market and, by understanding the dynamics of that market and the unique needs of customers within it, CBL has developed uniquely low-cost or well-specified product for the market because they have built strong brand loyalty amongst their customers. This has makes their particular market segment less attractive to competitors.

SITUATIONAL ANALYSIS SWOT ANALYSIS OF CBL Strengths • Innovation • Outstanding portfolio (plain biscuits, cream variants, crackers and ingredients based) • Technological Advancement • ISO 9001, 14001 and OHSAS 18001 certified • Product Quality & Strong Distribution Network • A well implemented offensive strategy

Weaknesses • Distant Production Facility (Located in Sukkur) Reborn Marketing Plan Of 50 50 Biscuit

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• Vague impression in customer s’ mind about Lefèvre Utile (LU) and Continental Biscuits. • Lesser International Exposer (6-8 % of total Business) • Poor Marketing of some brands. • Lack of differentiation of some brands.

Opportunities • New emerging segments • Changing preferences of buyers • Varying consumption patterns of consumers. • Increasing population • More concentration on “Youth Segment”. • Upgraded Technology

Threats • Severe competition from EBM in terms of packaging, branding & advertising. • Varying consumer preferences. • Availability of various local and foreign brands

INDUSTRIAL ANALYSIS Competitor Analysis EBM (UNDER BRAND NAME OF PEAK FREANS): 

Pioneer in the Industry (Established in 1965)

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Market Leader

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Variety of Products

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39% Market Share

ISMAIL INDUSTRIES (UNDER BRAND NAME OF BISCONI AND CANDY LAND): 

Established in 1989

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Variety of Products

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SANHA (South African National Halal Authority) which is the most

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Authentic certification for Halal products around the world.

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Competitive prices and customized packaging

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16% Market Share

ASIAN FOOD INDUSTRIES (AFI) UNDER BRAND NAME OF MAIFAIR: 

Established in 1969

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Variety of Products (Confectionary & Biscuits)

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3% Market Share

UNBRANDED (CLONERS AND IMITATORS): 

Located in remote areas of Sindh and Punjab

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Lower quality, safe from any taxes, no code of conduct

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8% Market Share

Porters 5 Forces Model Threat of Substitute

In any industry threat factor is always there whether it’s low or high. CBL has also the threat factor from is competitor side but there are some product differentiating qualities which makes CBL lie in low threat factor.

CBL has those product advantages which will not shift its customers easily to competitors’ product. And, they also have cost advantage factor as they use price penetration strategy. Threat of New Entrants

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One can enter in market to defeat other product mainly in two situation either they are coming with low prices and same benefits than current product or with more efficient knowledge and benefits than the current market product. CBL is facing the threat factor of new entrants but at the same time it also have strong point of unique prices which is tough for other new entrants to copy or defeat. Industry Rivalry

There are many factors which are affecting the area of industry rivalry like multiple numbers of competitors, quality differences, loyalty factor and other differences which changes consumer taste from time to time. CBL faces the multiple numbers of its competitors with very low change in quality. Loyalty is the thing which any product can’t buy ever it is gained from a long period of satisfaction so this is also a threat for CBL

Power of suppliers Suppliers have power to shift the cost from high to low and low to high. They are the one who handle your sales with their ability of dealing with customers. Number of suppliers, size and substitute all depend on the cost you have in your hand for your products distribution. CBL faces issues related to the size of suppliers in starting but no a very strong distribution network has been established. .

Power of buyers CBL users will not easily shift to competitors product easily because they have strong advertisement and quality check which the competitors doesn’t have ...