Marketing Management Project Report Topic: Marketing plan of Peek Frean Project Managers: Jhanzab Ahmed Aamer Zahoor

Ubaid Siraj BB093029 BB093023 BB093010

Supervisor: Sir Ahsan Ahmed Section: 1 Date: 1st July, 2011

Table of Contents
1. Dedications ....................................................................................................................... 3 2. Acknowledgement............................................................................................................ 4 3. Abstract.............................................................................................................................. 5 4. Introduction: ....................................................................................................................... 6 5. Methodology....................................................................................................................... 7 1. 2. 3. 4. 5. Purpose of Research ...................................................................................................................... 7 Market Segmentation .................................................................................................................... 7 Market Size:- ................................................................................................................................... 9 Market Trend:- ................................................................................................................................ 9 Study Methodology:- ..................................................................................................................... 9

6. Goals: .................................................................................................................................. 9 7. Core competencies ........................................................................................................... 10 8. Peak freans Biscuits have following over competencies .................................................. 10 9. Market analysis ................................................................................................................. 10 10. Portal forces ...................................................................................................................... 10 11. Competitors: ..................................................................................................................... 11 12. Gap identification: ............................................................................................................ 11 13. Supply chain management: .............................................................................................. 11 14. Strategies........................................................................................................................ 12 15. Tactics and Sustainability: ................................................................................................. 12 16. SWOT analysis of EBM Peek FreansBiscuits ..................................................................... 15 17. PEST Analysis of Abu Dhabi:.............................................................................................. 16 18. Main Aspects of PEST: ....................................................................................................... 16 Political factors: .................................................................................................................................... 16 1. Economic factors: ......................................................................................................................... 16
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Social factors. ................................................................................................................................ 17

Dedications
To hands, Shivering and uplifted Eyes heavy and thoughtful Of my parents; Hands ever praying for me Eyes with dreams in of my bright tomorrow These hands may never fall down. These eyes may never go to asleep. This project is dedicated to our most Respectful and Honorable teacher Sir Ahsan Ahmed who always motivate us towards Positive thinking and towards success.

Acknowledgement

First of all we thank Almighty ALLAH, we believe that without the valor given by Allah, we were not been able to complete this Assignment After

that we want to thank all of the persons who helped us during the challenging time we faced while carrying out this Assignment. We are thankful to our Teacher Sir Ahsan Ahmed Inspiration and direction, also parents & fellows for their hold and prayers

Abstract
Our assigned task was to prepare the marketing plan for product launching in Middle East, fro this we choose Peek Freans Biscuits as our product and Abu Dhabi as our target Market. Basically the purpose of making this report is to know the strategies and tactics that how the product will be launched in a new market? What marketing tool are required, how much budget we have to spend, how can we capture the market etc.

Introduction:
Peek Freans biscuits is the brand of English Biscuit Manufacturers Pakistan (Pvt) limited. EBM Pakistan is the leading manufacturer of biscuits and cookies in Pakistan since 1967. The company has the capacity of producing more than 90,000 tons annually. In Pakistan EBM is the first biscuit company which achieved ISO - 9001 Certification. EBM is the only Company in the industry to have achieved recognized international certifications pertaining to quality control, environmental management system and human resources management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People) Recognition. EBM is also the only food company to have been awarded Environmental Excellence Award for seven successive years 2004, 2005, 2006, 2007, 2008, 2009 & 2010. Peak Freans is getting Rs 12 billion annual turnover. Brand range of Peek Freans includes Marie, Gluco, Click, Sooper, Rio Strawberry Vanila, Rio Choco Vanila, Rio Choclate, Rio Vanila, Party, Peanut Pik, and Peanut Pista.

Methodology
1. Purpose of Research The purpose or our research is to develop a new product & to make better policies about the development & marketing of our product. Basically marketing research characterizes the voice of the consumer in a company. Marketing research provides the answer to these questions and analyzes the market situation. 1. What is happening in the marketthe trends going on and about the competitors? 2. Consumer feedbacks...How do the consumer talks about the product in the market? 3. The most important needs and the consumer needs satisfy from that product? By market research you can get some ideas that that there is a market ay by your thinking and the successful launch and growth are possible regarding your product 2. Market Segmentation Market Segmentation is the division of market or population into subgroups with similar motivation. Markets favor companies with clearly defined target segments. Market Segmentation Services provides fresh, perspectives for increased customer identification, selection, profitability, and retention. There are a variety of factors that must be examined to identify relationships and market segment discriminators, including Environmental attitudes Demographics Geography Personality differences Psychographic differences

Population

1.7 million

Age Structure

0-14 years: 20.4% (male 500,928/female 478,388) 15-64 years: 78.7% (male 2,768,030/female 1,008,404) 65 years and over: 0.9% (male 27,601/female 15,140)

Birth Rate

15.98 births/1,000 population

Death Rate

2.08 deaths/1,000 population

Population Growth Rate Net Migration Rate

3.282% -19 migrant(s)/1,000 population

Total fertility Rate Nationality

2.4 children born/woman noun: Emirian(s) (Emirati) adjective: Emirian (Emirati) Emiri (Emirati) 19%(Indian, Pakistani, Bangladeshi, Sri Lankan) 50%other expatriates (includes Westerners and East Asians) 8% 76% - Muslim 9% - Christian 15% - Other (Hindu, Buddhist) % Arabic (official), Persian, English, Balochi, Urdu, Hindi, Bengali, Somali, Malayalam, French Over all Literacy rate 91% Age 15 and over can read and write total population: 77.9% male: 76.1% female: 81.7% 25 percent of total federal government spending
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Ethnic Group Religion

Language Literacy Rate

Educational Expenditures

3. Market Size:We are using convenience sampling technique for our research. Due to lack of primary research we are making a descriptive and observational study to make the research plan affective and successful.

4. Market Trend:Now a days market of Abu Dhabi in the process of rebuilding due to the international recessions the market of Abu Dhabi collapsed. So trends in the market are positive because of growth when the economy is growing it is the best time for any business to be launched and get maximum out of the market. 5. Study Methodology:We use qualitative technique instead of quantitative study. We study different books & related material from the internet to design a perfect marketing plan for our product. In this we collect most of our data from internet. We study journals, articles & books etc.

Goals:
We are taking 60000 units to Abu Dhabi. Our main goals and focus would be: 1. Entering the product successfully into the market. 2. Making our brand Differentiated Memorable Simple Affordable Easily available Designed for many different tastes. 3. Targeting maximum number of health conscious and south Asian/subcontinent peoples tradition taste of baked food.

4. Gaining maximum market share by fulfilling the gap identified and providing the flavors unavailable in Abu Dhabi market. 5. Successfully defending our market share and sustaining growth.

Core competencies
Peak freans Biscuits have following over competencies Quality Strong Distribution system Advance production system Strong Market knowledge of their Sales forces Expert Man forces

Market analysis Portal forces

1. The threat of substitute products In Abu Dhabi there are several bakery food companies trying to gain market share competing against two market giants for this the threat of products like Snacks Cookies Cakes Biscuits from niche markets

2. The threat of the entry of new competitors: While after the recession as the economy of UAE is again growing the Indian food leader company Britannia is looking for a major investment in the market for gaining the market share. 3. The intensity of competitive rivalry: There is a concentrated market in Abu Dhabi for bakery food & especially for biscuit and cookies. While there is still a lot of potential for the new players in the market as it is estimated
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that the market growth rate for biscuit & cookies products will be round about 11% till 2015 which is comparatively much higher than the rest of the world which is 7% and this makes an ideal location for the bakery food companies to invest in.

4. The bargaining power of customers & suppliers: The bargaining power of the customers can be understood by the number of suppliers, per capita income and the biscuit companies operating in the market which clearly shows that consumers of the market have a lot of choices in alternatives while getting their desired flavors at the price proposed by the companies.

Competitors:
Oreo, mcvities, tim tam, ulcer, Americana, nabil, Britannia, parle, nutro, bisca

Gap identification:
While comparison the brand portfolio or the brand width of all the major and small competitors and peek freans biscuits and the changing trends in UAE people there is a big gap is identified for the peak freans biscuits. All of the companies competing in the market are making the chocolate, crme and plain sweet biscuits while 1 of the companies is focusing on digestive biscuits. The gap identified is the lack of brands purely related to the subcontinent people i.e. Pakistani, Indians, Bangladeshi etc. while in the fast growing economy and its people are much more health conscious therefore to fulfill their needs the brand width of peek freans biscuits has the products like whole wheat slice, click biscuits, peanut pik, peanut pista.

Supply chain management:

Our supply chain management would be tried to ensure: Cost effective Timely delivery Strong negotiation power More choices As less damage or loss as possible to the product Customized packaging facilities

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Strategies
The general strategy for launching and making our brands successful in the market is inducting the mixture of two strategies in general which are Flank Attack strategy followed by encirclement attack strategy which will be backed by niche marketing strategies comprising the tactical maneuvers. Price: In the beginning the first approach for capturing the high market share and differentiation of our brand in the minds and hearts of consumer would be competitive prices or skimming strategy. Place: Product will be channelized through departmental chain stores where are target consumers people of subcontinent most often go and shop. The flanker brands or niche marketing brands would be delivered mainly through retailers and wholesalers for targeting the maximum numbers of people as soon as possible. Promotion: For promoting the product effectively and attracting the people for our product promotion campaigns would include Educational institutes Celebrity endorsement Intercommunity and intra community food festivals Special discount offers for buying online from most visited web sites

Tactics and Sustainability:

Once the product enters in the market then the backup formulas, tactics and counter strategies will be applied to counter any evolving threat or situation. We will start to expand our market by introducing the product flavors same as the other companies to gain maximum revenue. Depending upon the initial response a customized product tactic would be used to deliver the choices like 2 in 1 and 3 in one packages which mean that customers would get easily 2 or 3 flavors of their choice. Jumbo packages would be introduced for traveling, hiking and parties etc.

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If we are attacked back then to counter them they would be attacked with crackers which are not available in the market. Peanut and pista biscuits would be provided also as an essential part of breakfast by selling it with breakfast cereals by collaborating with other high profile ready bakery food companies.

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SWOT analysis of EBM Peek FreansBiscuits

Strengths

Weakness

Supremacy is due to our prime emphasis on New market for product. quality Products coupled with an distribution network for export. excellent Limited distribution resources in Abu Dhabi.

Quality and innovation are the hallmarks of Less chocolate flavors than the competitors. CBL. Finest ingredients and hygienic conditions for Very few B2B connections are available. the manufacturing The only biscuit industry in Pakistan certified Lack of integration among SBUs. with ISO 9001, 14001 and OHSAS 18001 certified

Opportunities Population growth rate.

Threats Increasing interest rates.

High urbanization rate. High literacy rate. Flexible government policies for food industry. Have significant growth opportunities

Two big players in the market. Recessionary period in business cycle Product knowledge New arrivals of competitors

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PEST Analysis of Abu Dhabi:

A PEST analysis is one of them that are merely a framework that categorizes environmental influences as political, economic, social and technological forces. The analysis examines the impact of each of these factors on the business. PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porters Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of pest analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that companys performance is aligned positively with the powerful forces of change that are affecting business environment .PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment. Main Aspects of PEST: Economic factor Political factor Social factor Technological factor Political factors: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? UAE Federal Government Each Emirate has its own governmental institution. The ruling family of each Emirate is a member of the Supreme Council, which is responsible for policy-making and electing the president and vice president for five-year terms. 1. Economic factors: These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behavior.
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Economic Growth Inflation Taxation Customs duty Local Taxes Exchange Rate Oil exports:

16.7% this year, 3% No tax on personal salaries, 5% tax on hotel services and entertainment. 10% on luxury goods and 4% on the CIF value of all other goods imported 5% for residential premises and 10% for commercial premises. Dh3.67 per US dollar 2.2 million barrels of crude oil/day,3rd largest exporter

2. Social factors. Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines have increased whereas demand for toys is falling. 3. Technological factors: New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Gulf Information Technology Exhibition one of the 3rd biggest exhibitions of its kind Typical PEST factors to consider Political EU enlargement, the euro, international trade, taxation policy

Economic Social Technological

Interest rates, exchange rates, national income, unemployment, Stock Market Ageing population, attitudes to work, income distribution

inflation,

Innovation, new product development, rate of technological obsolescence

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Marketing stimuli Health biscuits Nut biscuits Zeera biscuits Crakers Plain sweet biscuits Cream biscuits

other stimuli Cultural Tecnalogical Halal

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