EBM Marketing)

MARKETING PLAN OF PEEK FREANS PEANUT PIK

ByUMAIR RAFIQ (11595)FAWAD KHALIQ (XXXX)

Athar Ishrat (11525)Arrange in alpha or numeric order

Date: 16th April 2011

A Company with a Heart and Soul

• English Biscuit Manufacturers (Pvt) Ltd was established as a joint venture company in 1965 with the name of PEEK FREANS PAKISTAN LIMITED

• In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited (ABIL), while the venture was renamed to English Biscuit Manufacturers (Pvt) Ltd, which stands to date

• EBM started manufacturing and marketing of world famous Peek Freans range in 1967 in order to provide Pakistani consumers with good quality, nutritious and hygienically packed biscuits

The History of EBM


• To be recognized as a LEADING and PROGRESSIVELY FORWARD looking FOOD COMPANY, providing the best quality products to everyone in Pakistan

• To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen

Vision


Our Products

• By 1999-2000, 50% of the market was dominated by branded biscuits, in which EBM had a sizeable share

• In the branded biscuits sector, the market shares of key players (EBM and CBL) are

Market Scenario Of Biscuit Industry


37%

26%

37%

LU

Gross Sales Of EBM


2,648,465

3,936,545

5,607,532

7,467,4937,859,720

Gross Sales Value (Millions)

05-06 06-07 07-08 08-09 09-10

Technological Environment - Types Of Biscuits


Types of Biscuits Biscuits (Category)

Soft & Sweet Plain Sooper, Bakeri, Gala, Bravo, Treat

Cream FillingPrince, Rio, Cocomo, Jam Hearts

Salty SnacksTUC, Saltish

Indulgent/SweetCandi, Chocolate Chip

Plain GlucoseCandi, Chocolate Chip

Ingredient BasedParty, Zeera Plus, Peanut Pik

Healthy Wheat Slices, Wheatable

SWOT ANALYSIS


STRENGTHSStrong company image GOOD R & DMarket leader in peanut biscuits in PakistanQuality production management

WEAKNESSESlow promotion for Peanut PikTarget market not clearly defined.Not easily available.Available only in two flavors

OPPORTUNITIESTarget market can be expanded Export MarketsMediaNew product variations can be introducedCan easily increase revenue by making the product available and improving distribution

THREATSStiff CompetitionIf price is altered, you are likely to lose a great chunk of market share.Unbranded (bakery) biscuits are available in the market at a much cheaper rate.Competitors esp. new entrants are doing heavy promotion of their brands which EBM is not able to match for Peanut Pik

PRODUCT LIFE CYLCE


OBJECTIVES:


•To penetrate into the biscuit industry as specialized nut biscuits (new

segment)

•Because of the limited plant capacity of SOOPER ,EBM decised to

focus on Peanut Pik as it was a market leader in nut sector

•They wanted to create a differentiation as no other company in the

past has hit this sector

•Since nuts are an expensive food item ,they want their audience to

experience it in a unique way in the form of peanut Pik

• Initial years of Peanut Pik Biscuit, it had a slow sales growth rate.

• Consumers were unaware of the product

• As it was a first mover (first nut biscuit), it was loved by consumers and within few years they started spreading a positive word of mouth.

• Peanut Pik is the market leader as it was the first nut biscuit ever introduced

• Since Sooper was a STAR for EBM they didn’t focussed on Peanut Pik.

• Still a start product for EBM but can be converted into a cash cow

• Peanut pik was in the maturity stage of the “PRODUCT LIFE CYCLE” and they keep on re-innovating and re-igniting it so that to keep it in its maturity stage or to bring its growth stage once again and avoid it to go into the decline phase.

PRODUCT LIFE CYCLE


Target Market

• Advance communication medium are providing countless information. Therefore manufacturers cannot just blindly make their products

• Every manufacturer needs to know the insights of their consumers about who want to and are willing to buy their products.

“True to its corporate claim of 'The Legend Leads', EBM has led the biscuit industry in Pakistan for over 40 years by providing innovative and high

quality biscuits.”


Target Audience

• EBM covers taste of almost every segment of the market; be it young or old, men or women.

• Consumer preferences change very rapidly in terms of taste and price specially in low involvement product.

• Peanut Pik targeted those consumers who preferred nuts in their biscuits.

• Peanut Pik mainly focus towards the urban market such as Karachi, Lahore, Islamabad etc.


Market Segments


Market Segments

• Following are some of the factors causing major market segmentation;

– Geographic Factors• Region: Sindh, Punjab, Balochistan, khyber pakhtunkhwa

• Cities/Town: Metropolitans, Cosmopolitans, Small Cities, Towns; Population ranging from 0.5 million to 1 million and cities with over 1 million population.

– Psychographic Factors• Lifestyle: Culture-oriented; Sophistication-oriented

• Social Class:

– Lower Class (lower, middle, upper)

– Middle Class (lower, middle, upper)

– Upper Class (lower, middle, upper).


Market Segments

– Demographic Factors• Personal Factors

• Age: 20-34 years; 35-49 years; 50-60 years; 60+

• Gender: Male and Female

– Behavioral factors • Occasion: Regular

• Benefits: Quality, taste and price

• User Status: Regular user; potential user

• Usage rate: Medium

• Loyalty: Medium; Strong

• Readiness Stage: Not fully aware

• Attitude towards product: Positive


Marketing Mix (4 P’s)

• The concept of “Food between meals” was devised by EBM and till now they have been pursuant in their philosophy.

• Product:– Peanut Pik is a unique biscuit that offers a distinct blend of natural

fresh peanut.

– It has sweet taste, crunchy bite with shinning gloss on peanut sprinkle top.

“Biscuits are Food” – healthy and nutritious; not only for children but also for adults.”



– Ingredients:• It contains wheat flour, hydrogenated vegetable oil, sugar,

peanut grits, invert syrup, corn flour, skimmed milk powder, salt, emulsifying agent, leavening agent, synthetic flavors (mixture of both natural and artificial flavoring compound)

– Nutritional information



Price of product– EBM has tried to make biscuits more affordable for middle to lower

middle income consumers

– All EBMs biscuits including Peanut Pik were available in small packs for children and for people working in offices whose use them at breakfast or lunch.

– Easy availability, quality and cheap prices makes EBM biscuits more

alluring to its customers.



– Packaging• EBM has multiple international certifications pertaining to quality control,

environmental management system and human resources management.

• EBM provides healthy and nutritious biscuits in a hygienic and high quality package.

• Placement of product– Peanut Pik was one of the FMCGs (Fast Moving Consumer Goods).

– Peanut Pik biscuits were available at almost every pan shop, superstore, canteen, medical or grocery store



– Peanut Pik Biscuits were sold in a nominal price range because:

1. It has great competition from other biscuit producing companies

2. It has been in the market since a long time and cant increase its price all of a sudden

3. It is a fast moving consumer good (FMCG)


Factory Distributors Wholesalers Retailers

PROMOTIONAL OBJECTIVES


PROMOTION

• Peanut Pik is in the phase of “maturity” in the product life cycle and so constant promotional activities are done by EBM to maintain or increase its customer base.

• EBM used Pied Piper as a uniform icon to promote all its products and hence, Peanut Pik is also promoted with the same icon.

• EBM use on and off combined campaigns for Peanut Pik & Peanut Pista as they both lie in the same category of nuts and peanuts biscuits

• EBM used TV commercials, radio broadcasts, billboards, print, school activities etc. promotions for Peanut Pik


Marketing Strategy

• The marketing strategy of Peanut Pik was penetration.

• EBM believed that the target market has changed on it own. Peanut Pik was firstly consumed by toddlers and children.

• EBM believed that Peanut Pik has a universal appeal and taste; it can be consumed any time in the day.


Marketing Strategy


Action Plan:

• New packaging of peanut Pik is introduced which is more colorful and up to industry standards.

• The packaging was introduced to differentiate from Peanut Pista as both were in White packaging and at retail level it was difficult to differentiate them.

Marketing Strategy


Action Plan:• Before 2002-2003 it was only

available in Family packs so Half roll,Snack Pack was introduced to benefit the customers.

• Promotion carried out as follows;• TVC campaign was carried • Ad campaign in magazines should

be carried out in the same fashion.

• Billboards should be set up.• The new promotion schemes

should focus the new target market and packaging.

Evaluation & Budget


EBM evaluated it’s strategy regarding peanut pik as follows:

• Internal Evaluation1. Company believes on its strong image of the brand name “Peak

Freans”

2. Company budgets relatively low marketing expenditure for Peanut Pik.

3. EBM enjoys its monopoly in nuts section so it does not believe in a heavy promotion for the industry

4. EBM believes previous strong promotions still works for today’s sales

5. Company does not plan to introduce more variants of Peanut Pik.

Evaluation & Budget


• External Evaluation1. EBM is not interested in exploring other market segments

2. Company has maintained effective pricing and is the market leader in terms of it

3. EBM has changed packaging for all of their product for promotions

4. EBM leads the front of biscuit industry with its brands like Sooper, Rio and Gluco

5. Company is not really concerned about other small threat of substitute products for biscuits like chips, samosas etc,

Current Situation


1. Market Leader in nut segment

2. 4th high production brand of EBM.

3. Easily avaiable.

4. When customer thinks of peanut they think Peanut Pik.

5. Cash cow for EBM.

• God has been kind to us

• Our Consumers have been kind to us

• We have lived up to their trust and confidence in our company and brands through our Marketing initiatives

• Aggressive marketing plans for the future

• Currently it is a cash cow for EBM and they are planning to turn it into STAR.

The Future


THANK YOU

EBM Marketing)

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