Introduction of Company
Tripple Em (Pvt) Limited, the pioneer company in manufacturing of premium, quality crisps and snacks in Pakistan, was established in 1982. Company’s instant success “Super Crisp” produced for the first time in Pakistan on the most modern American technology was launched in 1986. Ever since its launch, the “Super Crisp” has established new sales records and enviable consumer’s acceptance. Being the flag bearer of a truly international quality of crisps ever produced in South Asia and Middle East, the “Super Crisp” has opened un-conventional source of foreign exchange earnings for the country. Starting from the prime product of potato chips, the company has progressively expanded its product line to include Peanuts, Nimko Mix, a spicy Pakistani Snack and Dal Moong, the fried lentils. Already the market leader in premium quality packaged snacks in Pakistan; the company now has plans to introduce a comprehensive line of branded products in snack food. The company commands the world’s most advanced and sophisticated processing unit, custom built for Tripple Em by the leading American manufacturer of fully automatic and computerized snack food plants. The packaging system has been provided by a Japanese manufacturer renowned for its extremely modern & accurate computerized weighing and packing machines. The entire processing machinery is housed in a precision-built, centrally air conditioned premises to meet highest hygienic standards. The company maintains a most modern research and test laboratory to ensure the highest international standard in quality of the products. Quality of raw materials, effort and efficiency at Tripple Em enables us to provide the best of tastiest snack food items to you. Tripple Em is recognized member & affiliated to Potato Chips/ Snack Food Association of America since past several years. The snacks made from handpicked, farm fresh raw material, sprinkled with world’s best flavors and spices, processed under strict international hygienic conditioned are meant to satisfy the highest gourmet tastes. The company offers a range of snack food items include Potato Chips, Nimko Mix, Peanuts; Corn based extruded and pellet products. Nation wide availability of the products is made possible by a vast and effective distribution networks. Featuring convenience and maximum product display, the company’s POS material 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 multi-media campaigns run all over the country. 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.
Introduction of Product
SUPER CRISP Potato Chips
Type of Product
Level and Type of Competition:
Their competition strategies are based on the competitor’s strategy. They don’t follow the price war competitive strategy. They follow the standard of product and quality in competition. Their competition type is oligopoly.
One can’t imagine about a business without competition. Tripple Em has also some competitors. Major threats to Tripple Em are Lays, Pringles, Kolson and Golden, which has almost 45% of the market share. But as quality of the product play an important role that is not up to the standard by the competitors. So, Tripple Em is outstanding in all ways to the competitors like quality, quantity, price and variety of the products etc.
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. LAYS Niralla Smith Bunny Sherry Sadiq Dry Fruit PACE (Rancher) Golden Pak Food (Maxo)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Tripple-Em 45% Kolson 15% Golden 8% Smith 5% Lays 15% Others 12%
Tripple Em Lays Kolson Golden Smith Others
= = = = = =
45% 15% 15% 8% 5% 12%
Their competition strategies are based on the competitor’s strategy and try to block the market. They don’t follow the price war competitive strategy. They follow the standard of product and quality in competition.
WEIGHT & FLAVOR Share (%)
0.22% 3.22% 24.84% 15.20% 3.22%
Captain chips - gm Mr. Chips – 18 gm Super Crisp - 15 gm Super Crisp – 25 gm Super Crisp – 55 gm
Substitutes and Compliments
Soft Drinks and Juices
Relation with Domestic Economy
There are more than 200 Food Processing units producing confectionary and biscuits, jam, jellies and squashes, extruded snacks and potato chips, poultry and dairy products, beverages, cereal products, dehydrated fruits and vegetables, meat and meat products for local consumption and export. For citrus, "Cargill", and "Indus" are operating. Mitchells and Shezan are role models of profitable companies. Tripple-Em is the largest potato chip producer. Gulf States and Arab countries can be potential foreign markets for Pakistani fruit and vegetable products. Surplus can be exported through proper grading, processing, packaging and transportation. Pakistan lacks the trained human resources in Food Science and Technology which needs due attention.
In Saudi Arabia and Kuwait there is great enthusiasm for Pakistan's products. At lower prices headway can be made in these foreign markets. Citrus fruits, mango and apple export can be increased with proper grading, transportation if storage facilities are available. The export of dry fruits can be increased substantially by paying attention to its trade on proper lines. There is a great scope for the export of dehydrated vegetables. Presently Pakistan is contributing to less than 1% of this huge market. Export of value added products from potatoes like chips and dehydrated potatoes, potato powder etc. and also cereal foods and flakes etc. will have great export potential.
Given Market Situation
Tripple-Em (Pvt) Limited is the pioneer in manufacturing of premium quality Potato Chips and snacks in Pakistan. Their very first product was launched in Pakistan in 1986, under the brand name, "Super Crisp". The company introduced the latest American technology into snack food manufacturing in Pakistan. Ever since its launch, Super Crisp has occupied a prime position in the domestic snack food market. It has set new sales records and has achieved enviable consumer acceptance levels. Starting with their prime product, potato chips, and the company has progressively expanded its product line to include Peanuts, Nimko Mix and Daal Moong. Maintaining its leadership in premium quality packed snacks in Pakistan, the company has plans to introduce an extensive range of snack foods. In 1992, Tripple-Em launched its premium quality Extrusion Products for kids. Their extrusion product range includes Potato Stumps, Wheelo Pops and Catty Chins. Low priced and high quality, these snacks have become extremely popular among young kids, despite the fact that promotional activities to properly launching these products, are yet to be carried out. Being a flag bearer of true international quality, Super Crisp has opened up numerous sources to earn foreign exchange for the country by exporting to South Asia and the Middle East. A leader in the domestic snack food market, the company now holds a highly credible position in the Middle East, where its market share is growing rapidly.
Tripple-Em’s affiliation with SFA (Snack Food Association America) and certification of ISO 9002 guarantees prime quality and exceptional taste of their products. All their products are manufactured under strict-quality-control, to maintain taste, freshness and quality and make Tripple-Em snacks truly enjoyable, anytime and anywhere.
Different kinds of taxes are being imposed by the government on different things. These taxes will affect the pricing of these goods and even services. SUPER CRISP being a Product has to pay 15 % a government sales tax which is taken directly from the consumer. These taxes are included in the prices of the products and different promotional offers of Super Crisp. Other than this a deduction of 35% on net income is made as a tax deduction on income of the company. Food Industry faces problems at pre-establishment and post-production stage. Investment climate, political changes, market, labor, documentation and guidance problems do not attracts potential investors. Sanctioning of project, fuel, water, electricity, raw material, credit facilities, import of machinery, low capacity utilization, export restrictions, production cost, defective market system, transport and Government policies are major problems after production.
Measures to Increase Sales
The management of Tripple Em 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.
They have allocated 5 % of their annual forecasted sale for their marketing purpose which includes all promotional activities.
Marketing Positioning Strategy
In terms of price and competitors: It is cheaper than imported brands but expensive than local brands. So, they position their brand at higher price and high quality than their local competitors and cheaper than imported competitors. They are making Super Crisp and Krispers where super crisp is sold for quality conscious and krispers is sold for the quantity conscious people. In this way they increase the market share and the number of consumers.
Tripple Em has adopted the following slogans i.e. “You Can’t Hide Crunch”
Tripple Em almost uses all the Medias for advertising and promotion of their consumer products. The main advertising and promotional Medias used by packages are as under: 1) Television 2) Cable 3) Urdu Newspapers 4) English Newspapers 5) English Magazines 6) Urdu Magazines 7) Sponsorship Geo and ARY Digital World Call, Nbc, Info Highway Daily Jang, Nawa-e-Waqat and khabrain Daily Dawn, The News. Libas, Instep, Fashion Collection, Brides & You, Women’s own, Young Nation Akber-e-Jhan, Family Funfairs, Institution’s Industrial Exhibition. Prize Distribution &
In sponsorship they mostly sponsor the television programs, exhibitions like annual industrial exhibition held in the Fortress Stadium, Lahore. Tripple Em also uses sign boards, posters, stickers, note book stickers, pencil boxes, Tiffin, for students and brochures for advertisement of its products.
Super Crisp is Seasonal Product Sales in the summer drop down.
Attractive Brand name. Depth in product range. Distribution network is strong all over Pakistan. Availability. Good quality product. Differentiated features (like nitrogen gas in packing). Freshness. Direct supply to retailers. Latest automatic plant. Major Market share
No prize schemes available for retailers and distributors. Strict Discount Policies Low Trade Margins.
New horizons are opening for the company. Attractive market size. Can export their products. 60% more market is available which is in the hands of non-branded snack food providers. Diversification into related product line.
Imported brands. Tough competition. Changing buying behavior. Different kinds of taxes levied by the government. High costs of production.
Firm is producing less than efficient level. The production plant is not utilized in the night shifts. The same plant can be used to produce corned based products like Corn Flakes which can be product line extension (diversification). This is the way firm can ensure their sustainability in long run.
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. Tripple Em does not offer credit sale to its distributors, which affects sales. If Tripple Em provides some sale on credit to the distributors; they will be able to get good business. Due to strictly policy of 100% advance, Company has to loose the business. 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/ Incredibles can increase the sales of the products.
1) www.tripple-em.com.pk 2) Sohaib Aslam (Marketing Management) Tripple Em(Pvt).