CONTENTS

Summary. Mission & Vision Statement.Introduction & History:

Product Introduction.History of PepsiCo.History of Frito-Lay.Introduction of Kurkure in Pakistan.

Product Assessment:Quality, Style & Design.Flavors.Ingredients.Usage.Pricing.Packaging. Branding.Labeling.Product Lifecycle.

Consumer Assessment:Marketing Segmentation.Marketing Mix.Cultural & Social Factors.Economic, Political & Technological Factors.

Competitors Analysis:Major Competitor.Direct Competitor.Indirect Competitor.

Marketing Objectives.Marketing Environment.Marketing Strategy.SWOT Evaluation, Monitoring and Control.

“Summary”

This is the detailed report about PepsiCo product Kurkure.

It covers the detailed product introduction with respect to the four Ps of the marketing, brief history of the company, marketing environment of the company in Pakistan, product & consumer assessment that affect the workings of the company. It also includes the detailed competitor’s analysis.

This report also covers the marketing objectives, marketing strategies such as target market, pricing and product strategies & SWOT analysis.

At the end we gave some recommendations which may be useful in the growth and progress of the company. We have tried our best to cover all the topics of report and provide maximum information about the product.

“Mission Statement”

To be a result oriented and profitable Company by consistently improving market share, quality, diversity, availability, presentation, reliability and customer acceptance.

To ensure cost consciousness in decision making and operations without compromising the commitment to quality.

To set up highly ethical business standards and be a good corporate citizen, contributing towards the development of the national economy and assisting charitable causes.

To adopt appropriate safety rules and environment friendly policies.

“Vision Statement” To be a market leader providing quality extruded snack products.

To strive for excellence and global recognition by continuous improvement, innovation, dedication and growth.

“Product Introduction”

Named after the Hindi word for "crunchy", Kurkure is a Cheeto-like snack made and

marketed by Frito Lay's. It is one of the most popular snack food products in Pakistan

today. Kurkure comes in 3 different flavors. Snacks are of two types extruded & potato

chips, Kurkure is the extruded snack item. Introduced in Pakistan by PepsiCo

International on 1st September, 2006. Initially made in China under ‘Saudi Snack Food’

but now from 14th august, 2006 it is produced by PepsiCo International at plot no.413

Sunder Estate Rewind Road Lahore.

History of PepsiCoCaleb Bradham, a New Bern, North Carolina pharmacist, renames "Brad's Drink," a

carbonated soft drink, created to serve his drugstore's fountain customers. The new name,

Pepsi-Cola, is first used on August 28, 1898. In keeping with its origin as a pharmacist's

concoction, Bradham's advertising praises his drink as “Exhilarating, invigorating, aids

digestion.” 1902--The instant popularity of this new drink leads Bradham to devote all of

his energy to developing Pepsi-Cola into a full-fledged business. He applies for a

trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola

Company. In 1965 company begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge,

forming PepsiCo, Inc.

History of Frito-LaysFrito-Lay is an American and international company that markets corn chips, potato

chips, and other snack foods. Its headquarters is based on Legacy Drive in Plano, Texas,

USA (a suburb of Dallas). Frito-Lay was the result of the merger of the Fritos Company

and Atlanta-based H.W. Lay & Company in 1961. In 1965, a merger of Frito-Lay, Inc.

and the Pepsi-Cola Company resulted in the formation of PepsiCo, Inc. Currently,

PepsiCo retains ownership of the Frito-Lay Company, Tropicana Products, The Quaker

Oats Company, and The Smith's Snack food Company, Gatorade, and various other

ventures. Kurkure also comes in the ownership of Frito-Lays.

Introduction of Kurkure in

Pakistan

Although Kurkure is the product of Frito-Lays but it was introduced in Pakistan. It was

initially made in China under ‘Saudi Snack Food’ but now from 14th august, 2006 it is

produced by Pepsi. Kurkure capture a huge market in a very limited time due to its mouth

watering taste and aggressive marketing.

“Product

Assessment”Kurkure lies in the extruded item which comes under FMCG Products (fast moving consumer goods). Like every other multinational company, before introducing the ‘Kurkure Company conduct different surveys to get consumer interest about features, design and quality level. Kurkure is the convenience good at the consumer level so they are not offering any after sale service, user manual but they are offering benefits to the retailers in the form of more profit.

Kurkure is unique in Quality, Flavor, taste and quantity. It’s totally fulfilling the need of the people. Kurkure is the consumer product because it basically use at the consumer end, consumer buy or purchase for their personal use or consumption. In the case of Kurkure the consumer buying behavior is frequent purchase as Kurkure is easily available at a very low price at almost every general or retail stores in the country.

QualityAs far as the quality is concerned, company is producing a high quality product at a very low price. Customer in this region consider low price but still want for high quality. Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is offering “fast-mirchi” product to the customers.

Style & DesignStyle and design matter a lot on the outcome and response of the product. ‘Kurkure’ as the product (inside the pack and out side wrapper) has much attractive and catchy colors style and design which attracts the customers alot.

Flavors

Initially Kurkure was introduced in the market with only 2 flavors but later on company added 1 more flavor in the family of Kurkure. All flavors of the Kurkure are mouth watering and tempting. The real taste is in the crispness of the product, consumer can use Kurkure as plain or with different styles & recipes. Kurkure has adding more and more flavors to attract the consumers and retaining same taste.

Kurkure’s Flavor.

1. Masala Magic

2. Red chilli Jhatka

3. Podeena Masti

IngredientsWhile concerning the ingredients, it contains major mixture of Rice Meal, Edible Oil, Corn Meal, Gram Meal, Salt, Spices and Condiments and converted them to snack like eating crisp sticks that has never introduced before.

UsageKurkure is also positioning itself on the basis of its usage. Its promotional campaigns urge consumers to use it on.

Daily basis: At lunch Dinner Anytime, anywhere

Servings: With Chaat With tea With Raita With drinks

Occasions: Parties and celebrations

Pricing

Kurkure is standing in market as a low price chilli snacks. It is affordable by the consumers of every income level and price deliver value to customer.

Price Range: Small Rs 5/- Medium Rs 10/- Large Rs 20/-

PackagingKurkure is available in the market in 3 different packing. Kurkure comes in the air tight packing & packing material of Kurkure is of high quality so that product will remain fresh and its taste keeps secure up to more than four months. Kurkure has 3 different flavors in the market so the each flavor has its own unique packaging color combination according to its taste. Basic color combinations are in green and red colors which all are eye catching.

Kurkure is available to the consumer only in primary packing. No secondary packing is using. However they are delivered in container packing from production plant to shopkeepers or retailers, which carries 48 packs.

Kurkure is available in three different sizes

19 gm

38 gm

75 gm

Branding Kurkure lies in the manufacture brand because they are producing their product by its own. ‘Kurkure’ is an international brand of PepsiCo Int. and they are controlling the production itself in India. When they came Pakistan, although in Pakistan Riaz bottlers are the dealer of Pepsi but for ‘Kurkure’ company itself made a plant and produce them by their own to serve their customers. With the time being this brand is so familiar so its capture the mind of every person as a unique, quality, and tasty extruded with Kurkure’s Brand.

LabelingLabeling is the significant part of the product although there is less space available for that but it contains many information regarding the product. On the pack of ‘Kurkure’ following information are available. Nutrition facts & ingredients details are available on the back side of the “Kurkure” in all 3 types of that such product available in the market for health conscious people. On the front of every

Kurkure’s pack it is clearly indicates that it’s a Hilal Food.

Product Life CycleKurkure is launched only few months (1st September 2006) back in Pakistan and growing day by day. Currently Kurkure lies in the Growth stage where the profit ratio is not very high but the growth rate is very high but by the time pass consumer may be become exhaust from this product, which is a natural phenomenon, and the product will at stake on the point of maturity. By introducing new tastes, flavors and retaining the quality standards, it will snatch consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them.

NUTRITIONAL INFORMATIONRed Chilli Jhatka Amount per serve (10g)

Energy KJ 108.4Kcal 60

Protein g 1.3Carbohydrates g 9of which sugar g 0.3Fat g 7.1of which saturated g 3.3Fiber g 0.2Sodium g 0.2

NUTRITIONAL INFORMATIONKurkure Masala Magic Amount per serve (10g)

Energy KJ 108Kcal 60

Protein g 1.3Carbohydrates g 10.0of which sugar g 0.4Fat g 6.9of which saturated g 3.1Fiber g 0.2Sodium g 0.2

NUTRITIONAL INFORMATIONKurkure Podeena Masti Amount per serve (10g)

Energy KJ 240Kcal 60

Protein g 0.7Carbohydrates g 5.5of which sugar g 0.2Fat g 4.0of which saturated g 1.7Fiber g 0.1Sodium g 0.1

“Consumer Assessment”

Marketing Segmentation1.Geographic Segment:

Concerning geographical factor, Kurkure is trying to expand its wings to cover towns, villages, cities; making it available to everybody. The product Kurkure is specially designed for the Gulf & South Asian region specially India & Pakistan considering the taste & style of the traditional foods & flavors.

2.Demographic Segment: Concerning demographical environment, Kurkure will focus on several variables such as age, gender and income level.Age: Kurkure will focus heavily on children and young people.Gender: Kurkure is a generalized product for any sex, male or female.Income level: Kurkure pack is easily affordable and company is trying to give more for less making it best value of money.

3.Psychographic Segment: Considering psychographic factors, Kurkure will heavily focus on customer’s life style, tastes, and personal values that best match with the product usage and distinctive from competitors. Making an image of style, standardized taste and variety of flavors, Kurkure impacts positively on individual customer satisfaction.

Marketing Mix

1.Product Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is offering “fast-mirchi” product to the customers

2.Price Price also plays a vital role in the buying decision of any product because the price of a product will create a perception about the quality of the product. Kurkure is standing in market as a low price chilli snacks.

3.Promotion Kurkure is making big investments in promotional campaigns, using top models & celebrities from the media. Company is touching customers through:

TV advertisements Posters Retailer promotions

4.Distribution Placement of a product is also very important while buying the product like Kurkure. Since the right product at the right place is the real effectiveness of the company as well as product.

Cultural FactorsAs Pakistan is the agriculture based country, 70% of our population is connected directly or indirectly with the agriculture sector. Rice, Corn, Gram & Spices are the main & basic ingredients of our food. In fact Kurkure is such type of item which is specially designed for this region but it does not have any threat from the subculture of this region. Market in this region and its culture is extremely favorable for such type of snacks, which come in the head of extruded item, and people buy snacks frequently in this region.

By understanding the culture company is advertising their product for all age groups because their product is for everybody’s use. This understanding is also very important for their purchasing patterns and use. The company is mainly concentrating on upper & middle class.

Social FactorsThe target market of Kurkure is generalized including children, young and old people. In precise target market, Kurkure is focusing heavily in children and young segment. Kurkure is such kind of product which is easily affordable for every class of the market either quality conscious or price conscious, excluding lower lowers and upper lowers. The main focus of the company is the middle class along with a bit of elite class and also working class. Middle class is the best responding class for Kurkure.

Economic FactorsThe price of the small Kurkure pack is Just Rs.5/-, so it is affordable to every class of the country although those are not who are below working class (labors).

Political Factors

Kurkure is a legally registered company and applying labor laws and market laws of Pakistan. But it is known to them that Government interaction got much importance in every business and if there are some restrictions on them then it may be a hurdle in their way to success. That’s why some harsh Government rules may influence a wrong impact on company’s goals and achievements in future.

Technological Factors

Kurkure being the product of PepsiCo International and having a good repute in international market are already using modern technology to enhance the production and the quality.

Mr. Chips

Kurkure Veezo

Kurleez

Pringels

Popcorn

Biscuits

Jelly Beans

Crackers Candy Bars

Doughnuts

Canteens Hotels

Drinks

Product Category Competition: Crispy foods

Generic Competition: Snacks

Budget Competition: other foods and fun

Product FormCompetition: Salty Sticks

Lays Slanty

Lollipops CocktailNimko

“Competitor Analysis”

Major CompetitorIn direct competition, Veezo is a major competitor for Kurkure, because of;

1. Ingredients, taste and style2. Hitting directly the segment of Kurkure3. Capturing a good segment of market4. Taste and flavors

The company is launched with a different image performing as a snack food. Comparatively it is facing lesser competition in the market. Its has been launched with its strong promotional campaigns. It has a different kind of target market.

The company doesn’t have a strong brand image in the local market as comparatively the other competitors have like Kolson (Slanty) and Cheetos. There quality is not as better as other competitors of them like Kurkure are providing.

Direct CompetitorKolson Slanty is the direct competitor of the Kurkure, who still holds the largest share of the market. Company is producing wavier natural extruded item and per package price is same as Kurkure is producing. Kolson (Slanty) already existed in market before the arrival of Kurkure and its integrity with the local market is older than Kurkure. Kolson (Slanty) is very much aggressive in her promotional campaigns and have targeted youth and Teenagers.

They don’t have their stands yet therefore it’s hard for them to create a shelf space. There quality is not as better as other competitors of them like Kurkure are providing. The quantity of Kolson (Slanty) is less than the quantity of Kurkure at same price.

Indirect CompetitorsPringles in this category are the indirect competitors of Kurkure. The target market of Pringles that is Super Elite is loyal to them. The packing of the Pringles is prepared of Aluminum foil which attracts the health conscious people. The placement of each piece of chips in the packet is arranged in a manner and same in their size which also catches the attention of customers.

The have target just the Super Elite Class neglecting the other social classes of the market. The prices are that much high that its not being paid by habitual or variety seeking customers.

“Marketing Objectives”

To be a market leader providing quality extruded snack products.

To strive for excellence and global recognition by continuous improvement, innovation, dedication and growth.

Customer attraction towards the product is very important and without this phenomena company can’t fulfil its targets.

Strong distribution channel is the foremost element and is required more when the need increases, so the company should also focus on them and will give them certain benefits as well as the retailers.

Company should reduce the cost of production to increase the turnover.

“Marketing Environment”

MicroenvironmentThe Company

Research & development

Company has established their own plant at plot no 413, Sunder industrial Estate, Raiwind Road, Lahore. Its working and efficiency is under consideration. Experts are there to watch out and examined the machinery as well as production unit. They are also ensuring that its production is fulfilling the requirements in due time. Experts make it sure that they are producing Quality products. (Maintaining their quality standards)

Production

Company was importing Kurkure from China and Lays chips from “Saudi Arab” through its supplier “Saudi Snack Food” Company has started its production at its New Plant at Raiwind road Lahore on 14th August 2006. That improves the performance of the company. The time period of importing the product is eliminated. Raw material can be available in local market, so it would reduce the budget for raw material. The time span right from the production to distribution will squeeze and efficiency will be enhanced.

SuppliersCompany was importing Kurkure from China from 1st June 2005 and Lays chips from “Saudi Arab” through its supplier “Saudi Snack Food” and has a strong bond with them but now Kurkure is produced in Pakistan.

Distributors Kurkure has one major distributor in Pakistan.

Shahbaz brothers

Shahbaz brothers having maximum of their targets and maximum margins which is 14 % are their major distributors they are covering area of Gulberg, Defence, Cant, Sadar, Taj Bagh, Taj Pura and Jalo etc.

Order placement to Main Depot which is situated at Gulberg II, Pepsi office is weekly based and within 48 hours supplies arrives from Main Depot to Distributors Depot from where they distribute them to different retailers. Distributors are covering 35 to 40 shops daily to fulfill their target in the end of the month period. For distribution available vehicles are vans, Suzuki and Shahzors (only for Shahbaz Brothers).

Customers

The strategic focus of a business or a marketing plan of “KURKURE” Company is that they are targeting Youth, Girls and housewives (opinion leaders).

The company needs to study five types of customers like consumers, business, resellers, International and government. But in the case of KURKURE only consumers are exist.

PublicAll the public groups has an impact on KURKURE, banks from they have obtained loan, advertising agencies from whom they have run their advertising campaigns, govt. will also because they have an opportunity to collect tax and employees also because they have to earn from this.

Macro EnvironmentDemographic

“KURKURE” are not specifically concerned with any religion, race, occupation, family life cycle or sex and has a target market in every societal group. Main concerned segment is girls, housewives and youth. Who have experienced high product consumption level? But they are also targeting families, as they understand this influence factor in this region.

EconomicAll income groups are favorable for the business of “KURKURE” although those are not who are working class (labors).

Increased government intervention (political)

“KURKURE” is a legally registered company and applying labor laws and market laws of Pakistan. But it is known to them that Government interaction got much importance in every business and if there are some restrictions on them then it may be a hurdle in their way to success. That’s why some harsh Government rules may influence a wrong impact on company’s goals and achievements in future.

Natural“KURKURE” as an extruded item, made of vegetables, although these are natural resources but still there are not harmful to the nature. And there is rare chance of shortage of raw material in this case.

Cultural“KURKURE” is not as such a product which can be affected by the culture and tradition (primary & secondary) changes. Infect, it is based upon the culture of South Asia (Sub-continent) and Pakistan

Technological“KURKURE” being the product of PEPSI International and having a good repute in international market are already using modern technology to enhance the production and the quality.

“Marketing Strategy”

Market OrientationBecoming market oriented, Kurkure will focus on snacks’ customers. Keeping in mind

about the preferences and needs of customers regarding tastes and flavors, it will occupy a huge number of customers.

Gaining Competitive EdgeBy introducing new tastes, flavors and retaining the quality standards, it will snatch

consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them.

Trade PromotionsBy delivering valued trade promotions to wholesalers and retailers, company will capture

this huge segment. This will allow Kurkure to stay in market effectively and people will order more quantity due to its increased demand by customers.

Target MarketThe target market of Kurkure is generalized including children, young and old people. In precise target market, Kurkure is focusing heavily in children and young segment. Kurkure is not concerned with any religion, race, occupation, family life cycle or gender and has a target market in every social class. Main concerned segment is youth who have experienced high product consumption level. But they are also targeting families, as they understand this influence factor in this region.

PricingThe company is following the Cost-Based Pricing. But a company cannot follow a single strategy straightly. Kurkure is standing in market as a low price chilli snacks. It is affordable and price is delivering value to customer. Kurkure is offering three different prices for different packaging.

Small Rs 5/- Medium Rs 10/- Large Rs 20/-

“SWOT Analysis”Strengths

People from almost every income level are consuming Kurkure.

Brand conscious people like it most.

Being the part of the PepsiCo international company having the huge investment.

Attracting huge number of consumers by advertising campaigns through electronic & print media to aware the customer towards Kurkure.

People are comfortable with the Price of Kurkure.

Company is emphasizing on its distribution and placement strategies.

Kurkure has a strong brand image at their back like Lay’s and also PepsiCo International.

Kurkure is such kind of product which is free from any kind of age or gender restriction.

It is also useful for health conscious people because it is made of grains (wheat, rice and many others).

Kurkure is such type of snacks which is always ready to consume.

Weaknesses

Facing the enormous competitors in the market.

Indirect competitors are investing heavily in branding.

Although they are trying to make their efforts best to make their supply excellent but still they are not reached to the rural areas of Pakistan.

Some areas like Highways (especially on Motorway) and many others exist in Pakistan where still Kurkure can not manage to fulfill their requirements and where the products of competitors are available.

Elite class of your society are not consuming too much as compared to the middle and others due to the price as we can say the status problem

At that time Kurkure only offering three flavors while others are offering more than that.

Kurkure are not providing any extra facility or benefit to the customer.

Opportunities

Supply of this product in the remote areas of Pakistan.

Improvement in its Quality as there is always room for the improvements in anything.

Addition of new local flavors helps a lot to sustain in the market.

Sponsoring major events and festivals for huge awareness campaigns.

Try to make supply in all the areas where the other competitors are existing already.

Design such strategies and advance planning to become the market leader in the smallest span of time.

Introduce the family and economy pack to serve the large families which also cost you cheaper and ultimately will accepted by the consumer.

Try to serve the elite class according to their status and requirement.

Make advertisement in sub urban and rural areas and give incentives to the shop personals so that also motivate towards it.

Kurkure has an opportunity to introduce a less spicy or light flavor to increase their consumer ship and target market.

Threats

Competitors like Kolson and Triple M are the biggest threats to our product.

Indirect competitors are also contributing in the same way.

Biscuits and Nimko hold major share of Market.

New entrants can also the threat for the Kurkure and may create hurdles in the growth.

Small companies that are not a problem at that time may become the main competitors or threats to Kurkure

On arrival of Kurkure Kolson introduced a new flavor in their brand Slanty which may divert the attention of consumer towards them from Kurkure.

There are many substitutions in the case of snacks which is the great threat for Kurkure.

People usually like variety in flavors which is the up coming threat to the Kurkure because they have only three flavors.

Govt. policies may affect the growth of the Kurkure

“Recommendations & Suggestions”

Here are some recommendations & suggestions which may open the new horizons of the growth and progress of the company.

The company can occupy a huge number of customers by keeping in mind about the preferences and needs of customers regarding tastes and flavors,

By introducing new tastes, flavors and retaining the quality standards can attract consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them.

By delivering valued trade promotions to wholesalers and retailers, company can capture this huge segment. This will allow Kurkure to stay in market effectively and people will order more quantity due to its increased demand by customers

The company should try to expand its wings to cover towns, villages, cities; making it available to everybody.