Proposed Research Topic

To find out the stagnant market share of our product and increasing market share of other
brands.

Purpose
The purpose of this study is to find out the potential market of "Langnese" in Karachi.
In this study we will try to find out the competitors of "Langnese", their competitive edge,
market share and strengths in the market.

Introduction
The Langnese honey brand was born in 1927 and was accompanied by the classic "fine
selection". A short time later the brand was given its characterizing feature: the honeycombed shaped hexagonal glass jar with its gold-colored Langnese lettering and exquisite
taste. In 1958, Langnese had a turnover of 6,500 tons of honey and 20 million DM a year.
A "masterpiece of nature," Langnese honey is quite simply the perfect harmony between
product and brand. Germany's best known and most popular honey, its is also a global
brand and is now present in more than 50 countries. In 1997, Langnese launched the first
ever honey dispenser known as "bee easy".
To achieve the best honey from selected nectar and pollen areas, Langnese maintains
connections to selected regions of origins and carefully checks quality assurance using the
latest scientific techniques. Honey, a versatile food can be used in many forms. Langnese
honey fit perfectly into our diet for use with Cereals, Milk shakes, Deserts, Salads or
simply as a spread on bread and sweetener in your tea.
The Langnese honey range includes our golden "Natural Bee Honey", the mild "Acacia:
and tangy "Forest" and "Black Forest" honey, the "Royal Jelly" and our "Bee easy"
honeys.

Slogan
The brand that brands for nature
Honey is one of the most natural organic foods in the world. And LANGNESE is the
brand that leads the world with its divine taste and quality.

Specifications

Langnese Honey contains only specially selected honey from the best honeyproducing regions of the world

All Langnese products undergo the most rigorous quality controls

Langnese Honey contains only specially selected honey from the best honeyproducing regions of the world

In addition to our main laboratory, Langnese runs its own quality control
laboratories in the honey-producing countries throughout the world.

Meticulous quality control means in excess of 100,000 honey tests every year

The Langnese brand has set the standard for purity and high quality since 1927!
Langnese is proud to guarantee the strictest German purity standards

History
The history of the traditional company Langnese honey began at an early summer of 1925:
the young Karl importer Rolf Seyferth bought at the Hamburg Exchange 5,000 kg
California honey. Spontaneously - because the manager of the "German-Chinese egg
products company" had been to do with honey or anything. But contrary to expectations after initial setbacks - the business flourished and demand rose. From the impulsive start
of the stock market developed after two years in a thriving honey trade.

The birth of the brand

Slowly it was time for a brand name that customers should whet your appetite. Therefore,
Karl Rolf Seyferth 1927 advertised in the "Hamburger Fremdenblatt" that he was looking
for a shell company.
The export businessman Viktor Emil Henry (VEH) Lagnese was interested most. At that
time a biscuit factory in Hamburg with good reputations was running. He was known for
high quality, great commitment and would fit so well Seyferths honey. He and Seyferth
met in a hamburger gourmet restaurant. He clear that his name only in good
hands, remember to put. After agreement the brand "Langnese Honey" was born.

A distinctive appearance

A branded product requires a suitable and especially distinctive appearance. Already in the
30s was Seyferth developed the typical HB's glass.
Honey combed the 6-corner shape and the slanted Langnese logo in conjunction with the
color gold, the HBs honey does still an eye-catcher on the shelf.

On the way to brand products

1948, when everything was in ruins, the Marshall Plan brought the hamburgers a boatload
of honey. Mr. Seyferth recognized the opportunity and temporarily installed in the
basement of a Hamburg company has a bottling plant. As of 1950, the systematic
development work. From Langnese honey, a brand with consistent high quality and taste.
Langnese acquired own apiaries in Guatemala, Salvador and Mexico and established
comprehensive quality control. Moreover Langnese led for months taste tests by food
businesses with owners and customers. Thus arose eventually with hard work, skill and a
keen sense of the optimal HB's recipe. Investments had paid off: In 1958 was Langnese
honey leader with 6,500 tons and a turnover of 20 million DM in 1965 the company
moved to the small town Bargteheide, north of Hamburg.

Research Objective
Repositioning of "Langnese" as a house hold brand.
Study the current market position of "Langnese" with respect to competing brands. In
the last few years we have noticed that many new brands (local and international) have
been introduced in the market and captured a value able part of market share.
To get understanding of consumer purchase decision.
To increase market share of (Langnese) by suggesting various options related to sales
promotion and advertising.
Company should introduce innovative media vehicle, suggest branded honey which
promote this brand as a daily household usage brand.

Hypothesis

If a product having high market growth /share then becomes stagnant or decline due to
increase rate of new competing product.

RESEARCH METHODOLOGY
Langnese is a household food product. Personal survey is categorically the best fit.
However, being more precise and absolute survey will be the best match for this particular
brand. Langnese is a natural product, carefully harvested and bottled to preserve the
quality to enjoy for all age groups. As the brand has an essence of domestic household
consumption so other methods like telephone, mail and electronic surveys will not be
viable and genuine.
Methods are the ways that you adobe you approach your respondents. They are called
method of data collection as well as method of administration.
To approach our target respondents and to record their responses we have used questioners
as a tool of data collection. We have personally visited 50 different retail outlets in 07
measure areas of Karachi following are the areas, we have covered in this study.
1-

Gulshan-e-Iqbal

2-

North Nazimabad

3-

Water Pump

4-

Federal B.Area

5-

Gulistan-e-Johar

6-

Gol Market

7-

Gulberg

Q: 1 What brands of honey are available at your store?

Brands Available

No. of Shops

Billy Bee

29

Sue Bee

34

Pak Honey

37

Darba Diabetiker

Salman's

68

Golden Country

Hamdard

26

Youngs

22

Langnese

98

Others

21

100

Billy Bee

90

Sue Bee

80

Pak Honey

70

Darba Diabetiker

60

Salman's

50
40

Golden Country

30

Hamdard

20

Youngs

10

Langnese
Others

0
No. of Shops

During this study we have personally visited fifty different outlets in seven different areas.
We have used questionnaire to record the responses. The brands available are Billy Bee,
Sue Bee, Pak Honey, Darba Diabetiker, Salman's, Golden Country, Hamdard, Youngs,
Langnese and others.
Q: 2 Average monthly sale of different brands?

Billy Bee
Sales

No.Of Shops

(0-9)

17

(10-18)

(19-30)

(above 30)

Total

19

20
15
(0-9)

10

(10-18)
(19-30)

(above 30)
0

Total
No.Of Shops

Sales

In order to get a closer insight of our and our competitor's performance we have recorded
the average monthly sales of the above stated brands. In this part of study we find out that

the average monthly sale of 19 stores lies between 0-09 bottles, while 1 store sells 10-18
bottles and 1 store sells 19-30 bottles every month.

Sue Bee
Sales

No. of Shops

(0-09)

15

(10-18)

(19-30)

(above 30)

Total

17

20
15

(0-09)
(10-18)

10

(19-30)
5
0

(above 30)
Total
No. of Shops

Sales

Out of 50 retail outlets average monthly sale of 17 stores lies between 0-09 bottles,
while10-18 and 19-30 bottles are sold on 1 stores every month.

Pak Honey

Sales

No.Of Shops

(0-09)

(10-18)

(19-30)

(above 30)

Total

18

20
15

(0-09)
(10-18)

10

(19-30)
5
0

(above 30)
Total
No.Of Shops

Sales

Average monthly sale of Salman's honey on 8 stores lies between 0-09 bottles, while 6
stores sell 10-18, 3 stores sell 19-30 and 2 stores sell more than 30 bottle every month.

Darba Diabetiker
Sales

No.Of Shops

(0-09)

(10-18)

(19-30)

(above 30)

Total

2
1.5

(0-09)
(10-18)

(19-30)

0.5
0

(above 30)
Total
No.Of Shops

Sales

Out of 50 retail out lets average monthly sale of only 2 stores lies between 0-09 bottles.

Salmans

40
35
30
25
20
15
10
5
0

Sales

No.Of Shops

(0-09)

25

(10-18)

(19-30)

(above 30)

Total

38

(0-09)
(10-18)
(19-30)
(above 30)
Total
No.Of Shops

Sales

Average monthly sale of Salman's honey on 25 stores lies between 0-09 bottles, while 7
stores sell 10-18, 4 stores sell 19-30 and 2 stores sell more than 30 bottles every month.
Salman's is the closest competitor of Langnese.

Golden Country

Sales

No.Of Shops

(0-09)

(10-18)

(19-30)

(above 30)

Total

2
1.5
(0-09)
(10-18)

(19-30)
0.5
0

(above 30)
Total
No.Of Shops

Sales

Average monthly sale of Golden Country on 2 different stores lies between 0-09 bottles
every month.

Hamdard

16
14
12
10
8
6
4
2
0

Sales

No.Of Shops

(0-09)

11

(10-18)

(19-30)

(above 30)

Total

16

(0-09)
(10-18)
(19-30)
(above 30)
Total
No.Of Shops

Sales

The average monthly sale of Hamdard on 11 different outlets lies between 0-09, while on
3 and 2 store's average monthly sale lie between 10-18 and 19-30 bottles.

Youngs
Sales

No.Of Shops

(0-09)

(10-18)

(19-30)

(above 30)

Total

11

12
10
8

(0-09)

(10-18)

(19-30)
(above 30)

2
0

Total
No.Of Shops

Sales

The average monthly sale of Youngs on 9 different outlets lie between 0-09, while the
sale of 1 stores lie between 10-18, sale of 1 store lies between 19-30.

Langnese
Sales

No.Of Shops

(0-09)

28

(10-18)

10

(19-30)

(above 30)

Total

48

50
40
30

(0-09)

20

(19-30)

(10-18)
(above 30)

10
0

Total
No.Of Shops

Sales

Out of 50 retail out lets average monthly sale of 28 stores lies between 0-09 bottles, while
10, 4 and 6 stores average monthly sale is between 10-18, 19-30 and above 30
respectively.

Others

Sales

No.Of Shops

(0-09)

(10-18)

(19-30)

(above 30)

Total

10

10
8
(0-09)

(10-18)

(19-30)

(above 30)

Total
No.Of Shops

Sales

This table includes the data of all other brands, according to this table on 5 stores 0-09
bottles of few different brands sell monthly, while 10-18 bottles sell at 2 outlets, 19-30
bottles sell at 2 outlets and above 30 bottles are sell at only 1 outlet.

Q: 4 what trade promotion scheme you are getting from distributors?

No. Of Shops
Quantity discount

26

cash incentives

free coupons

Nothing

19

Total

50

50
40

Quantity Discount

Cash Incentives

Nothing

Total

30
20
Free Coupons
10
0

Sales

As a trade promotion scheme 26 outlets in 7 major areas are getting quantity discounts
from the distributors, while 5 are getting cash incentives and 19 are getting nothing as a
trade promotion scheme. One more thing that we came across during this study is that all
these schemes are offered to the big retailers only and there is no such offer for medium
and small retailers.

Q: 5 Like to give front-end shelf space to "Honey"?

No.Of Shops
Yes

50

No

Total

50

No.Of Shops
Yes
No
50%

50%

Total

Out of 50 different outlets we have found that all the available honey brands were very
well placed at the front-end shelf space.

Q: 6 Do company share retail promotion cost?

No. Of Shops
Yes

No

50

Total

50

No. Of Shops
Yes
No
50%

50%

Total

The retail promotion cost is shared by none of the honey brands

available in the market.

Q: 7 Out of 10 customers, how many inquire "Langnese"?

Customer
Inquire

No.Of Shops

16

22

16

11

10

N/A

25

2
3

20

4
5

15

6
10

7
8

9
10

0
No.Of Shops

N/A

We visited a total of 50 shops. The general outcome of our research after evaluating the
customer preferences towards different brands of honey was undoubtedly, in favor of
Langnese. Approximately 64% of the total market for honey is dominated by Langnese.
The remaining 34% is distributed among other competitors.

Q-8. Competitively Priced?

(Langnese)

No.Of Shops
Yes

18

No

28

N/A

Total

50

50

50
40
30
20

28
18

10

0
1
Yes
N/A

No

Total

Out of 50 outlets, 36% responded favorably towards the product price being competitive,
while 56% opposed this view. Some stores did not cooperate and therefore have not been
included in the given percentages.

Q: 9 Satisfaction with distribution company?

(A)
Regularity in supply
Yes

46

No

N/A

Yes

60

No

N/A

40

N/A

No

20

Yes

0
1

The response as far as the efficiency in distribution is concerned, stated

92% positive and 4% negative. The remaining 2% chose not to
cooperate.
Quantity per demand

Quantity Per Demand

Yes

48

No

Yes
1

No

10

20

30

40

50

60

(B)

A smashing 96% of the respondents are more than satisfied as far as the quantity per
demand goes. However the 4% of the respondents who reacted negatively when asked,
complained that quantity supplied by the distributors, given their limited funds was
unsuitable for their business.

(C)

Incentives
Yes

10

No

40

50
40
30
20
10
0
Incentives

Yes

No

According to respondents, the majority consensus disagreed with the

fact that the distributor provided any incentives (80%). However at the
same time the same population also could not deny the fact that they
were more than satisfied with the distributor's regularity and efficiency.
(D)

Response to complaints
Yes

39

No

11

Response to Complaints
40
Yes

30

No

20
10
0

78% of the respondents agreed with the fact that the distributors responded promptly
whenever they had any complaints. 22% however feel neglect from the distributors'
response to their complaints.
Q: 10 Satisfaction with Brand Management Team?
Regularity
Yes

14

No

36

40
35
30
25
20
15
10
5
0
Regularity

Yes

No

In contrast to other favorable results for Langnese, the response for distributor's regularity
in supply was generally negative, in the fact that 72% of the population voted against the
regularity factor while a mere 28% were in favor of the notion.

27
26
25
Axis Title 24
23
22
21

Attitude
Yes

23

No

27

Out of 50 respondents 23 were comfortable with the attitude of the brand management
team while 27 respondents do not have any good experience with them.

Response to compliance
Yes

22

No

28

30
25
20
15
10
5
0

22 of the total respondents are satisfied with the responses they get in
respect of their complains, while 28 respondents do not support this
idea.

Q: 11 What do you suggest to encourage sales of "Langenese"?

Availability

Advertising

46

Consumer
Schemes

35

Reduce Price

44

Improve Quality

Increase Profit
Margin

46
Availability

44
Advertis ing

35

Cons umer S chemes

Reduce Price

Improve Quality

Increas e Profit Margin

Out of total 50 respondents 5 respondents suggest to improve availability, 46 respondents

suggest company should launch effective advertising campaigns, 35 suggest company
should launch attractive consumer schemes, 44 suggest company should reduce its price in
order to cope with the tough competition. 4 respondents suggest that company should
improve the quality of their product while 5 respondents suggest increasing their profit
margin.

QUESTIONNAIRE FOR RETAILER

Title
____________________________________________________________
Avenue
____________________________________________________________

Q1: How many types of honey available at your store?

Langnese

Golden Country

Al-Shifa

Sue Bee

American Green

Premium Honey

Salmans

Darba Diabetiker

Pak Honey

Natural Bee

Youngs Honey

French

Billy Bee

Others

Hamdard
Q2: How many consumers of honey do you have?
(weekly/monthly/yearly)

1 15

16 30

31 45

46 60

61 75

76 90

Q3: Which brand of honey frequently sale?

Langnese

Golden Country

Al-Shifa

Sue Bee

American Green

Premium Honey

Salmans

Darba Diabetiker

Pak Honey

Natural Bee

Youngs Honey

French

Billy Bee

Others

Hamdard
Q4: Average monthly sale of different brands?

Langnese ____________________ Golden Country ______________

Al-Shifa _____________________

Sue Bee _____________________

American Green ______________ Premium Honey

Salmans ____________________
Pak Honey ___________________
Youngs Honey _______________

______________

Darba Diabetiker
_____________
Natural Bee _________________

Billy Bee_____________________

French ______________________

Hamdard ____________________

Others ______________________

Q5: What trade promotion scheme you are getting from

distributors?
a) Quantity Discount
b) Cash Incentives
c) Free Coupons

d) Nothing

Q6: Like to give front end shelf space to Honey?

Yes

No

Q7: Do company share retail promotion cost?

Yes

No

Q8: Competitively priced Langnese

Yes

No

N/A

Q9: Satisfaction with distribution companies?

a) Regularity in Supply
Yes

No

N/A

b) Quantity Per Demand

Yes
c) Incentives
Yes
d) Response To Complaint
Yes

No
No
No

Q11: Satisfaction with Brand Management Team?

a) Regularity
Yes
b) Attitude
Yes
c) Response To Compliance
Yes

No
No
No

Q12: What do you suggest to encourage sales of Langnese?

a) Availability

b) Advertising
c) Consumer Scheme
d) Reduce Price
e) Improve Quality
f) Increase Profit Margin

Q13: Which top three brands of honey most frequently sale at

your store?

Langnese

Golden Country

Al-Shifa

Sue Bee

American Green

Premium Honey

Salmans

Darba Diabetiker

Pak Honey

Natural Bee

Youngs Honey

French

Billy Bee

Others

Hamdard
Q14: Is there more price difference between brands?
Yes

No

Q15: Why consumers prefer to take brand?

______________________________________________________________
______________________________________________________________

Q16: What factors increase the quality of honey to purchase?

a) Quality
b) Price
c) Quantity
d) Packaging
e) Availability
f) Others

QUESTIONNAIRE FOR CONSUMER

Age [18 25]
60]
Gender

[26 - 35] [36 - 45] [46 - 60] [Age above

Male

Female

Qualification
_______________________________________________________
Question 1: What kind of honey do you buy?

Langnese

Golden Country

Al-Shifa

Sue Bee

American Green

Premium Honey

Salmans

Darba Diabetiker

Pak Honey

Natural Bee

Youngs Honey

French

Billy Bee

Others

Hamdard
Question 2: What are your criteria when purchasing honey?
a) Quality
b) Price
c) Flavor
d) The name of producer
e) Origin
f) Type of honey
g) Size/Packaging

Question 3: How often do you buy honey?

a) Weekly
b) Monthly
c) Occasionally
d) Never

Question 4: Is the Pakistani origin of honey important for you?

Yes

No

Question 5: Where do you buy honey?

a) Special honey shop
b) Super market
c) Hypermarket
d) Producer
e) Others

Question 6: What is your opinion about the price of honey

available in shops?
a) Generally cheap
b) Generally acceptable
c) Generally expensive
d) Low quality is
expectable
e) Low quality is
expensive also
f) I dont know

Question 7: What factors could increase the quantity of honey

to be purchased?
a) Emphasizing the healthy
lifestyle
b) Price discount
c) Improving the assortment of
product
d) Improving the number of new
products
e) Improving the availability in
shop
f) Improving the quality of
packaging

EVALUATION & FINDINGS

Main findings are as follows:
o There are several types of honey available in Pakistan, but people dont know too
much about them, they consume and purchase only a few of them.
o Mainly the so-called traditional honey are purchased.
o Analyzing the variables we didnt find significant differences in the different
groups; most important criteria when purchasing honey are quality, price, type of
honey and quality of packaging.
o Most of consumers purchase honey only a few times per year, or monthly and
mainly in
o Superstores or directly from the producer.
o Emphasizing the healthy lifestyle and Price discount factors could mostly
motivate people to buy more honey.

CONCLUSION
During this study we come to know that there is a stagnant market of
honey users in our country, honey is commonly used as a medicine and

many new brands have been introduced in last few years. Langnese still
have the highest market share and highest brand image in the minds of
customers. The closest competitor of Langnese is Salman's

and

therefore provides the main threat to the market share of Langnese.

Recommendation

1-

We should reposition our product as a daily household usage brand.

2-

We should adopt sales-push strategy to regain the market share by offering new
consumer schemes and increase retailer's profit margin.

3-

Launch new advertising campaign focusing on the new usage of product such as
honey should use in daily breakfast.

4-

New and aggressive consumer schemes should be launched to increase market

share.

REFERENCES

INTERNET
http://www.langnese-honig.de/en/our-company/81.html