GOLDEN CHIPS

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					GOLDEN POTATO CHIPS
Standard Foods Private Limited Golden Group of Companies

University of Central Punjab

Golden Potato Chips Standard Foods Pvt. Ltd.
Golden Group of Industries

PREFACE

We were assigned to prepare a Marketing Report on Standard food Pvt. Ltd. Golden Potato Chips i.e. about their Marketing Mix (Product, Price, Promotion, and Placement/Distribution) e.g. on which method Standard Food is setting price of their product, method of promoting their product, contacts of company with its channel member and their methods of maintaining product.

SWOT (Strength, Weakness, Opportunities, analysis e.g. the features that the company product weak points the product has, chances company can capturing market and the competitors the company will

Threats) has, the avail on face.

It was a very tough work of collecting all the information and giving it the shape of a Report. We have collected the information from different sources i.e. most of the information is collected through personal conservation with company’s staff, conservation with retail stores owners, company’s broacher and some other sources.

We learnt a lot from this report that how the companies actually apply marketing strategies in their practical life, their networks with different parties like suppliers, wholesaler and distributors and different procedures in making product etc.

Acknowledgment We are thankful to Prof. Shazad Alam who gave us the opportunity of making this report which furbished ours skills in making Reports.

We like to thank Mr. Rana Sattar Ahmed Khan Main Office Manager to provide us the major information about company

And we also like to thank Production and Marketing Manager of Standard Food Pvt. Ltd. who don’t disclose their names to us due to some reason.

EXECUTIVE SUMMARY Standard Foods (Private) Limited is one of the company of Golden Group of Companies which produce high quality Snack food products like Potato Chips, Fried Nimko, Fried Nuts Chocolate etc.

In this report you will find detail analysis of Standard food Pvt. Ltd. Product Golden Chips. This product complies with international standards like Institute of Food Technologists and Snack food Association. The combination based price method adopted by the company for its produc t Golden chips. The media like advertisement through Pamphlets, News Papers etc Company uses for promoting Golden chips. The company network through is distribute Golden chips Countrywide.

The Golden Chips features like low in cholesterol; Freshness is preserved by special packing, hygienic working condition and recognized by international Institution. Weak point of product like Non availability and some others are also discussed. Opportunities like company should deliver it product to other cities where market is not saturated and some other improvement to its product. The tougher competition faced by Standard food Pvt. Ltd. from its competitors.

Group recommends that Standard food Pvt. Ltd. should increase budget for advertisement, increase its distribu tion network with external parities and should also increase its production level.

Contents
INTRODUCTION OF COMPANY ........................................................................................................ 9 COMPANY’S MISSION STATMENT ........................................................................................... 9 HISTORY ................................................................................................................................... 9 COMPANY’S PHILOSOPHY ..................................................................................................... 10 COMPANY’S NETWORK ......................................................................................................... 11 TARGET MARKET ................................................................................................................... 12 DEMOGRAPHIC ...................................................................................................................... 12 COMPETITORS PRODUCTS & ACTIVITIES ............................................................................... 12 MARKETING MIX ...................................................................................................................... 13 PRODUCT .................................................................................................................................... 14 BRAND NAMES ...................................................................................................................... 14 Production Processes .................................................................... Error! Bookmark not defined.16 VARITEY ................................................................................................................................. 17 QUALITY ................................................................................................................................. 17 PACKAGING ........................................................................................................................... 18 FEATURES .............................................................................................................................. 18 PRICE.............................................................................................................................................. 19 COMBINATION BASED ........................................................................................................... 20 OTHER FACTORS .................................................................................................................... 21 DISCOUNT POLICY ................................................................................................................. 23 CASH SALES ............................................................................................................................ 24 PROMOTION .................................................................................................................................. 24 METHOD FOR PROMOTING ................................................................................................... 24 SELECTION OF MEDIA ............................................................................................................ 25 ADVERTISMENT TIMING ........................................................................................................ 26 CREATIVE ADVERTISMENT..................................................................................................... 26 PUBLIC RELATION .................................................................................................................. 26

ALLOCATED BUDGET ............................................................................................................. 26 OBJECTIVES ............................................................................................................................ 27 FEEDBACK .............................................................................................................................. 27 PLACEMENT/DISTRIBUTION .......................................................................................................... 27 CHANNELS ............................................................................................................................. 28 COVERAGE ............................................................................................................................. 29 INVENTORY ............................................................................................................................ 29 LOGISTICS .............................................................................................................................. 29 MEASURE TO INCREASE SALE ........................................................................................................ 29 MARKETING STRATEGY.......................................................................................................... 29 MARKETING BUDGET..................................................................................................................... 30 SLOGAN/LOGO .............................................................................................................................. 30 SWOT Analysis ............................................................................................................................... 30 Strengths ............................................................................................................................... 30 Weakness............................................................................................................................... 31 Opportunities ........................................................................................................................ 31 Threats ................................................................................................................................... 32 RECOMMENDATION ...................................................................................................................... 32 Suggestions to increase the Sales.......................................................................................... 32 Credits............................................................................................................................................ 34 Bibliography................................................................................................................................... 35

INTRODUCTION OF COMPANY
COMPANY’S MISSION STATMENT

Golden Group of Companies has always followed a vision which embodies growth, quality and customer satisfaction in the country. The best results of company has been possible through a policy of setting objectives based on market oriented strategies, exacting the most out of their resources, optimizing their skills and not missing even the s mallest opportunities that pass by them. They have responded and adapted themselves to the changing market needs on corporate, business and product levels. Perseverance has been possible through changes for the betterment. This outlook keeps their manageme nt on its toes for delivering high quality products at competitive prices. It also helps them to have a more innovative approach.

HISTORY

In 1982, citizen of PakPatan Habib Ullah laid the stone of a project know as Golden Group of Companies. Standard Foo ds Pvt. Ltd. is also a part of this fast growing group of industries . This company became the pioneer in export quality snack food production in Pakistan. The company plants were imported from First world countries like England, Japan and U.S.A etc. It is one of the first companies in Pakistan whose processing plant is consist of automatic peeling equipment, washing equipment, shelling line, frying equipment having an indirect heating system with a heat exchanger, automatic seasoning equipment, integrated selection conveyors and bucket conveyors along with

a computerized vibratory weighing system. This ensures the quality of product at every step of production.

COMPANY’S PHILOSOPHY

Standard Foods (Pvt) Limited has a working philosophy that

 Developing organizational cultures which encourage team work for goal achievement.  Introducing new products under snacks category in Pakistan.  Enhancing production units that include state -of-art equipment ensuring an output of high quality products  Maintenance and enhancement of a penetrative marketing network throughout Pakistan and across the border.  Using only the premium quality ingredients irrespective of their changing market conditions in our production processes.  Development of avenues to explore the foreign ma rkets with the exports of our products  Provide consumers low price chips having same quality and better weight than competitors.  The company maintains a most modern research and test laboratory to ensure the highest international standard in quality of the products

COMPANY’S NETWORK

Golden Group of Companies Limited has a vast network throughout the country. The companies include are

 Farooq Habib Textile Mills Ltd.

 Standard Fruits Ltd.

 Standard Foods Pvt. Ltd.

 Standard Cold Storage and Ice Plant

 Star Cold Storage and Ice Plant

However our concern is with Standard Foods Pvt. Ltd Nationwide availability of the products is made possible by a vast and effective distribution networks. Featuring convenience and maximum product display has played a very vital role in creating wider brand awareness among consumers as well as earning popularity among the trade.

Since inception, an innovative, appealing and sales oriented advertising back up has constantly been provided to the products through effective marketing strategy. The aggressive advertising campaigns run by the company have created perpetual brand loyalty among the consumer besides

gaining the confidence of trade, who now willingly place the products among the top earning items for them.

Standard Food Pvt. Ltd. Primarily uses indirect distribution channels throughout Pakistan.
TARGET MARKET

The target market of Standard Food Pvt . Ltd. is children for some products and teenagers for some products and collectively the target market of the company is middle and low income group of the country. Its targeted markets are Punjab, Sarhad Islamabad and many others.
DEMOGRAPHIC

The market consists of children and teenagers. They represent the large segment of market.

COMPETITORS PRODUCTS & ACTIVITIES

Following Competitor’s products are being sold in the market but their product availability is not that good. The only reason for their presence is the Credit facility and high margins.

 Lay’s  Niralla  Smith

 Bunny  Sherry  Sadiq Dry Fruit  PACE (Rancher)  Super Crisp  Pak Food (Maxo)

MARKETING MIX The Marketing Mix consists of Four P’s i.e. the Product, Price, Placing and Promotion. Now we will explain marketing mix in more detail e.g. that how Standard food apply these P’s while making and implementing business strategies.

PRODUCT Product is the good or service in which company is dealing. Product planning is one of the most important steps. Product planning is systematic decision making relating to all aspects of the development and management of a firms product including branding and packaging.

Importance

Standard food Pvt. Ltd. has different snack food products e.g., Potato chips, Nimko, Dry Fruits etc. They consider product planning as vital aspect of their company. They produce their product on international standards which have unbeatable quality. The company wants to make an image of its product in consumer mind by making its product more standardized.
BRAND NAMES

Standard food Pvt. Ltd. has different snack product which are sold under the common brand name Golden. Following are the sub names of products

GOLDEN KRUNCH RANGE
PRODUCT DESCRIPTION Product weight in grams. Packing per carton Company Price Distributor margin Retailer margin Sales tax consumer price Flavors Golden Krunch 15 1*48 3.52 0.33 0.50 4.35 0.65 5.00 Bar B Q Saltish Ketchup Golden Krunch 30 1*24 6.88 0.82 1.00 8.70 1.30 10.00 Bar B Q Saltish Lemon Chilli Golden Krunch 60 1*24 13.32 2.07 2.00 17.39 2.61 20.00 Bar B Q Saltish

GOLDEN SNACKS RANGE
PRODUCT DESCRIPTION Product weight in grams. Packing per carton Company Price Distributor margin Retailer Margin Sales Tax Consumer Price Flavors Golden Kracker 6 1*144 1.27 0.17 0.30 1.74 0.26 2.00 L. Chilli Hot & Spicy Golden Kracker 15 1*48 3.52 0.33 0.50 4.35 0.65 5.00 Lemon Chilli Hot & Spicy Salt’ n’ Pepper Golden Twist” ems 15 1*48 3.52 0.41 0.50 4.35 0.65 5.00 Ketchup Saltish

PRODUCTION PROCESS

Store Potato

Washer

Peeler

Slicing

Steam Washing

Frying

Packaging

Flavoring

VARITEY

There is a vast variety in Potato chips which are offered. There are different forms of chips like Plain Potato Chips, Ridged Potato Chips and Potato Shoestrings and indifferent flavors which are Original Salt Recipe, Spicy, Lemon, Tomato Ketchup, Paprika, Chill, Barbeque, Ch icken, Onion, Garlic, etc

QUALITY

Companies can leave a strong impact on consumer mind by providing high quality. Standard food also follows this philosophy. They provide high quality in their products because they have to face tough competition in the m arket from its competitors like Lays, Kurkuray, Smith chips and many others.

Standard food: Golden Chips is also the member of international food and standard Associations

 Institute of Food Technologists

 Snack Food Association

They have modern laboratories and strict rules regarding hygienic working conditions in the company which are applied to maintain high quality control during product processing.

Potatoes are carefully graded and selected by the company. They select only farm fresh potatoes which are sliced very thin and deep fried in pure vegetable oil and apply finest flavors that customer will like.

PACKAGING

Packaging is an essential part of product planning in which companies make research on packaging designs with product safety attribute. As Golden Chips is environment sensitive product therefore Standard food pack their Golden chips in special Metalized packs with extra barrier quality to ensure that chips always reach their customer with that “JUST” cooked taste. Packing cartons and chips packing bags are made and printed by packaging.

FEATURES

Golden chips has following features

 Low in Cholesterol.

 Low Calories.

 Low Price.

 Fresh & Crisp Guaranteed.

 Weight is higher than others. PRICE Price means determining the price of product by concerning factors that can affect it. Price can be Cost, Demand, Competition based and if we integrate these three we get Combination Based Price.

 Cost Based Pricing In cost based pricing Price is computed by determining the cost incurred on production by the company. This technique is not effective because it doesn’t consider dynamic market conditions e.g. over production, competitors product price etc.

 Demand Based Pricing In demand based pricing Price is determined by examining the market demand of product. This technique is also not stable because in cases where competition is high price should stay low otherwise consumer will buy competitors product.

 Competition Based Pricing In this technique price is determined by analyzing the competitor price. Competition based pricing is suitable to both company and consumer. In this technique the competition in market is low as all the companies have same price.

 Combination Based Pricing When all the above techniques are combined Combination based pricing comes. It is the most suitable pricing method. It is used by many companies worldwide.

Importance Standard Food Pvt. Ltd. has also given importance for pricing its products. They have adopted Combination based pricing which is the most suitable.

COMBINATION BASED

Standard food Pvt. Ltd. pricing policy is combination based. As it is the most suitable pricing policy. Companies can adjust their price according to many factors. Following are the factors which are affected in Combination based pricing policy

 Cost Cost of production is one of the important factors in deciding price of the product Golden Chips. Standard food adopts this pricing policy according to the circumstances. They figure it out by the cost of raw material rate and many other expenses e.g. electric consumption, ware housing, transportation etc

 Consumer (demand)

Standard food also set their product Golden Chips price according to the market demand of their product e.g. they increases the price of snack food and juice drinks in boosting seasons like summer when demand for their product is high in market and drop product price in depression seasons like winter when demand is low in market.

 Competition (competitors) In some circumstances Standard food also adjust the Product Golden Chips prices according to the competitors Product price to keep its market share safe.

OTHER FACTORS

There are also some other factors which affect Product Price adjustment of Standard food Pvt. Ltd.

 Government Government taxes and policies also affect the price of Golden Chips likewise Sales tax, General tax and some others when increases product price also increases and change in Govt. policies also affect the price. Standard Food adjusts their price policy Govt. working.

 Transportation Transportation cost also affects the Price of Golden Chips in different areas. The higher the transportation cost the more the price of Golden chips increases.

 Channel Member Commission Price is also affected by commission of different parties like Distributors, Wholesalers, and Retailers.

DISCOUNT POLICY

Standard Food Pvt. Ltd. gave discount on lump sum orders, loyal customers, super markets etc.

 Bulk Orders Company gives 10% to 15% discount on bulk orders by wholesaler throughout the country but variation in prices occur due to other price affecting factors discuss above.

 Loyal Customers 5% to 10% discount is also given to companies loyal customers who have dealing with company for more then a decade.

 Super Market Standard Food (Pvt) limited also has some contracts with Super Markets of their product Golden chips in which they provide high discounts.

CASH SALES

Standard Food Pvt. Ltd. has a cash sales policy. They don’t offer their product on credit basis while some of their competitors have credit sales policy which is a drawback for them.

PROMOTION Promotion means to inform and tell others about your organization or good or service you are providing in the market.

Promotion planning is an important systematic decision making relating to all aspects of an organization’s or individual’s communication efforts.

Importance

Promotion is very important element of the marketing mix. Consumer must know about the organization and the products it offered. Realizing the importance of the promotion standard food Pvt. Ltd. is also promoting their products through different channels and medium.

METHOD FOR PROMOTING

A product can be promoted through different methods.

 Advertising o Television o Broachers o Mails o Magazines o Billboards Geo 7 to 9 pm timing.

 Public Relations

Standard Food Pvt. Ltd. is promoting its product Golden chips through Television, Broachers, Magazines, Billboards Advertising and also through Public relations.

SELECTION OF MEDIA

Standard Food Pvt. Ltd. is promoting its product through following media

 Electronic media: They are advertising Golden chips on TV occasionally. Their ads can be seen on Geo TV, PTV and some others.

 Print media: Most of their advertisement is taking place through

print media. It includes bill boards, pamphlets and stickers.

ADVERTISMENT TIMING

They are giving ads through different Medias when the demand in market is likely to increase e.g. seasonal changes, or when the competitors are capturing the market by increasing their advertisement.

CREATIVE ADVERTISMENT

Standard Food Pvt. Ltd. look at the contents of the advertisement which are designed e.g. are they look creative to public, after that they schedule the contents of the campaign and then they select their media for advertisement.

PUBLIC RELATION

For the improvement in public relations Standard Food Pvt. Ltd. is planning to enter in the online world of E-Commerce they are creating a website www.golden-crisp.com which is underdevelopment and their email address is sfl@magic.net.pk

ALLOCATED BUDGET

Standard Food Pvt. Ltd. is allocating a nominal amount of budget for the promotion of the golden chips. It mainly depends on the kind of media they are using for the advertisement.

OBJECTIVES

The following may be the objectives of promotion.

 Stimulating demand  promoting image of the organization

The main objective of the promotion of the Standard Food (Pvt) Limited is to stimulate demand of their product golden chips among the public.

FEEDBACK

They evaluate the success or failure of their advertisement through feedback from distributors that the demand for the product Golden Chips has raised or not. What faults public find in the Golden Chips etc.

PLACEMENT/DISTRIBUTION Placement includes activities and parties that create and deliver product to its intended customers. This requires careful distribution planning with regards to physical movement and transfer of ownership of the product from the Standard Food (PVT) limited to the consumer.

Importance Standard Food Pvt. Ltd. has also given importance to the placement of Golden Chips. They have built a vast network of Supplier, Distributors, and Retailer etc.

CHANNELS

Standard Food (PVT) Limited uses indirect channel of distribution which includes channel members Standard food (PVT) limited, wholesalers, retailers and customers.

COVERAGE

Through the use of the indirect distribution, channel Stander food (PVT) Limited cover major cities of the country. They cover cities like Lahore, Faisalabad, Gujranwala and Sargodha etc.

INVENTORY

Stander food limited uses inventory management system to provide continues flow of their Golden Chips to their intender customers. They do not keep large inventories, because they keep on introducing new flavors, so they try to be on a minimum but sufficient level, to meet customer demands. They maintain inventories proportional to achieve the highest inventory turnover rate.

LOGISTICS

Logistics includes broad range of activities concerned with efficient delivery of raw materials; semi finished items and finished products to designated places, at designated times, and in proper condition. Logistics involves functions as shipping, warehousing, inventory control, private trucking-fleet operations, packaging, receiving, materials handling, and plant, warehouse, and store location planning. MEASURE TO INCREASE SALE
MARKETING STRATEGY

The management of Standard Food Pvt. Ltd. has adopted the “Differentiation” marketing strategy. It strives to be the service leader, the quality leader, the style leader, the technology leader and so on. The firm cultivates those strengths that give it a competitive advantage against its competitors.

MARKETING BUDGET
They have allocated 5 % of their annual forecasted sale for their marketing purpose which includes all promotional activities.

SLOGAN/LOGO
Standard Food Pvt. Ltd. has adopted the following slogans i.e.
“Adding Taste to Life”

SWOT Analysis By getting all the possible data about Standard Food Pvt. Ltd. we think that the company has following Strength, Weakness, Opportunities, and Threats

Strengths

 Product high standard which is approved by International institutions.  Product Features like low in cholesterol, low price etc.  High quality metalized packing which preserve the freshness.

 Company offer vast variety of flavors in Golden Chips.  Modern production plants which they have imported from the first world countries.  Large Production capacity of plant is also one of their strength.

Weakness

 Sales only on cash term basis and ignoring credit term basis.  Allotting low budget for Advertisement.  Ignoring the moves taken by competitors e.g. advertisement, product standard, capturing market etc.  Very low budget for employee training due to which working efficiency of the employees is low.

Opportunities

 Standard Food Pvt. Ltd. business is limited to only to major cities so it can expand its business by going into new market where demand for their product is high e.g. Peshawar, Chamun, Okara, Abbottbad, Bahawalpur, Chakwal, Dera Ghazi Khan and many others.  Standard Food Pvt. Ltd. can also export its product Golden Chips to international market as it meets the international standards.  Company can introduce new flavors e.g. French Cheese, Soy Sauce & Butter, Fish, Vegetable etc.

 Online marketing of their product.

Threats

 Standard Food Pvt. Ltd. can have a threat from its Competitors like Lays, Smith Chips, Kurkurye and many others.  Due to aggressive marketing campaign by its competitors Standard Food Pvt. Ltd. has a threat to lose its market share.

RECOMMENDATION

Our group recommends that Standard Food Pvt. Ltd should launch vast advertisement campaign to inform its potential customers about the strengths of its product Golden Chips. Budget should be allocated for the employees to improve their work efficiency, different kind of allowances should also be provided to Employees. Standard Food Pvt. Ltd. should also expand its business by doing business online due to which more reputation could be earned.
Suggestions to increase the Sales

 The Snack Food Industry is presenting many new opportunities in the future, in domestic and foreign markets. There is a need to exploit these opportunities before the competitors use them up.

 The Marketing Department should tap the private institution’s cafes and CSD chains, because there are many more potential customers.

 They can enhance the image of their company by entering into field of public relations. If they let the public know their plans and operations, say, in electronic media, it is hopeful that the people will consider the organization with sense of still greater esteem and this can add to the growth of their consumer products.

 The advertising budget should be increased specially for electronic media.

 Maintain the quality.

 Create the product Range Awareness even at Shop Keeper level.

 Shop’s Signboards can play a pivotal role in creating awareness amongst the new customers while retaining the older ones.

 Customized packaging showing the popular cartoon/movie characters e.g. Spider man/ Incredible can increase the sales of the products.

Credits

Group Coordination, Report Formation and Company History Done by Data on Product Collected by

Data on Price Collected by

Data on Promotion Collected by

Data on Placement Collected by

SWOT Analysis done all Group Members

Bibliography


				
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About Hi, Are you looking for assignment and term reports? then I can make your assignments and term reports. Please email me for further details: Email: umair_sheikh2002@hotmail.com Thanks.