Final Project Missing Customer & Competitors Analysis, Marketing Segmentation and Challeng

8/7/2019 Final Project Missing Customer & Competitors Analysis, Marketing Segmentation and Challeng

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MARKETING PLAN OF EBM

HISTORY:

English Biscuit Manufacturers (Private) Limited was established as a jointventure company in 1965 with the name of Peek Freans Pakistan Limited. In1966, the UK sponsor company was renamed Associated Biscuits InternationalLimited (ABIL), while the venture was renamed English Biscuit Manufacturers(Private) Limited (EBM), which stands to date.

EBM started manufacturing and marketing the world famous Peek Freans rangein 1967 in order to provide Pakistani consumers with nutritious and hygienicallypacked biscuits of the highest quality.

True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industryin Pakistan for over 40 years by playing a pioneering role in providing innovativeand high quality biscuits for every taste bud.

EBMs trademark, Pied Piper, made its mark three and a half decades ago, butcontinues to remain in the hearts, minds, and souls of the people through the

variety and excellent quality of biscuits manufactured under its umbrella. EBMenjoys the distinction of being the first food company in Pakistan to promotebiscuits as 'food between meals'

EBM has been in the business of manufacturing and marketing branded biscuitsin Pakistan for over 40 years. The brand name 'Peek Freans' is a householdname, and people trust and believe in the quality of the products produced underthis brand. EBM is also the first biscuit company in Pakistan to have achievedISO - 9001 Certification in correspondence with its institutional slogan 'TheLegend Leads'. The achievement also endorses the company's firm commitmentto high standards of quality.

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EXECUTIVE SUMMARY

The reason why i chose EBML is that the biscuit industry in Pakistan is currently

experiencing high competition between the two major players, that is EBML and

LU.EBML had been and is a major player in the biscuit industry. Infect it had

been the market leader until the arrival of Continental Biscuit Limited (CBL), the

makers of LU Biscuits. To regain its lost market leadership EBML has been

forced to reconsider and re plan its marketing strategies and reposition itself in

the biscuit industry.

This has given us the opportunity to analyze a company, which is actively and

strongly challenging its competitor for its lost share. It has also given us a

valuable chance to apply the concepts, which i have learnt in our Principles of

Marketing course. I have used this opportunity to put forth our own views and

analyses of EBML's environment, strategies, organization, systems, productivity

and functions. Finally i have given our recommendations and opinions which i

have come up with after making our analysis.

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What Do I Aim To Present?

My main focus in this report is the Marketing Audit of EBML. Through this, i aim

to identify the compatibility of the company's basic marketing strategies to its

resources, structure of the company and ultimately the biscuit industry, its

strengths and sicknesses, the effectiveness of the company's control system and

finally how they have actually gone about implementing their strategies.

In this process i have began by analyzing EBMLs micro and macro environment.

This is then followed by an audit of EBMLs Marketing Strategy, the MarketingOrganization and the Marketing System. I will then focus on the productivity and

finally conclude by analyzing the marketing functions such as products, price,

distribution, promotion and sales force.

Following the audit i will focus on our analysis and in turn will present our

recommendations for EBML. Also included will be other alternatives and

contingency plans.Application of Concepts and Strategies

By observing and analyzing EBMLs environment, strategies, organization,

functions and control systems, i have tried to apply the various concepts and

strategies taught to us in our course. These concepts have helped us in

understanding the various strategies and functions being performed in EBML.

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I have in this respect started by applying the following marketing concepts andterms:

Product Mix.Recommendations

In this respect i have tried to give our recommendations which i thoughtthe companyshould consider. This is obviously been based n ouranalysis and findings. In addition tothat our recommendations havebeen based on the way i have approached companycases in ourcourse. These recommendations are given within the audit itself andrelate tothe concepts that i have identified relevant to EBMLs case.

Problem Statement1

EBML, currently a market challenger in the biscuit industry, is engaged in

differentiation and value-pricing strategies. Hoover, the wide product line of the

company constituting various products in the decline stage is cannibalizing the

front runner brands like Rio, Marie, and Gluco. Moreover, stiff competition from

LU and changing consumer preferences are the main hurdles in EBMLs efforts

to regain its lost market leadership position in the industry, capitalize on its Pied

Piper icon and increase market share of its profitable front runner brands.

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Vision

To provide high quality value-added food to contemporary and futuregenerations

To constantly endeavor for the acquisition of knowledge and excellence indeveloping human skills, product innovations and state-of-the-art

technologies

To be a good corporate citizen by giving back to the community andimproving the lives of the underprivileged

To dispense equitably, fairly, and with compassion, the fruits of successamong our partners in business

To become a partner with the Government in sharing the responsibility ofeconomic and social uplift and development of Pakistan

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Values

I believe that no individual is bigger than the institution

I believe in integrity, transparency and commitment as our cultural ethos

I continually adhere to the highest standards of hygiene and ecology

I believe in governance in human face

I protect and promote the cause of the environment

I emphasize on employee lifer

I believe in leading and innovating in all aspects of business

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Corporate Social Responsibility

Page intro goes here

Since gaining independence, Pakistan has been very fortunate to have sociallyconscious entrepreneurs in its midst. A large, diverse number of individuals andgroups have placed the interest of the nation and its people above their own, andin doing so, have earned the respect and reputation that their companies carrytoday.

EBM is one of the leading firms of the country, not only in terms of profitabilityand growth, but also in the area of social services. EBMs corporate socialresponsibility umbrella has benefited several sectors including environment,education, health and sports.

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Environment

Environmental protection, safety and security have always been the top priority atEBM. EBM performs its business activities with utmost respect and care for theenvironment through proactive environmental management.

Waste Water Treatment Plant

EBM has set up a waste water treat while the company is committed to delivering

high quality products; it also recognizes the importance of being a responsiblecorporate citizen. emend plant and the company is using treated water forgardening purposes and to irrigate the newly landscaped recreation area andpark for children.

Solid Waste Management Area

The company has built a separate area for solid waste so that it does not harmthe environment. Mostly waste is disposed of in a manner that is not harmful toanyone.

Development Plan

The company has constructed a lush green area for families, including childrensplay area, three waterfalls and gazebos, at an expenditure of Rs. 6 Million.

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Education

EBM strongly believes in education, especially for females and adults and hassponsored several programmers such as the Garage School, Clifton Karachi, theCHAEF (Children Health and Education Foundation) School and the ShaheenKG School in Kala Shah Kaku, Lahore. The company has also initiated an in-house literacy programmed for its employees by the name of Ujala. Regulardonations and fundraising activities have also become part of day to daybusiness at EBM, as part of the companys social responsibility initiatives.

Health

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In the field of healthcare, EBMs support over the years has been extended toShaukat Khanum Trust, Sahara for Life Trust, Edhi Foundation, Fatimid, MarieAdelaide Leprosy Centre, Alamgeer welfare Trust, The Helpline Trust /Consumer Protection Council and the Childrens Health and EducationFoundation, to name just some of the beneficiaries. Other initiatives haveincluded the operation of the Childrens Nutritional Program.

Sports

EBM firmly believes that a healthy mind works in tandem with a healthy body andhas backed the sports initiatives of individuals and national teams, since thecompanys inception. EBM was also the first corporate entity to have sponsoredcricket, hockey, tennis and golf in the early years of PTV, when sponsorships ire

considered a taboo in the marketing circles of Pakistan. Through its sponsorshipsupport, EBM made it possible for millions to watch major international sportingevents through the first-ever live telecast, via satellite, of Mohammad Alis boxingbouts (1974), the telecast of the Football World Cup (1973) and the finals of theAll England Lawn Tennis Championships, direct from Wimbledon.

Extending support in sports to the less privileged, the company has alsosponsored the Blind Cricket Tournament 2004 and the Asian Olympics forSpecial People in Lahore.

As the legend leads, EBMs endeavors serve the crucial purpose of creating an

awakening and getting others to start thinking about socially responsiblebehavior. This is only possible if more and more companies, and not just thelarge ones, come forward to do their bit. The corporate sector must take a long-term view on this matter as a prosperous community can only benefit thecorporate sector in return.

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Certifications

EBM is the only Company in the industry to have achieved recognizedinternational certifications including ISO 9001:2008, ISO 14001:2004, ISO22000:2005, ISO 27001:2005 and Halaal Certification.

Details of the certifications, and recognition given below:

ISO (International Organization for Standardization)

ISO is a global network that identifies what International Standards are requiredby business, government and society, develops them in partnership with the

sectors that will put them to use, adopts them by transparent procedures basedon national input and delivers them to be implemented worldwide. ISO anongovernmental organization is a federation of the national standards bodiesof 157 countries, one per country, from all regions of the world includingdeveloped, developing and transitional economies with a central Secretariat inGeneva, Switzerland, that coordinates the system. PSQCA (Pakistan Standard ofQuality Control Authority) represents Pakistan as the national standard body.

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ISO 9001:2008

ISO 9001:2008 is a Quality Management System that focuses on controlling andmonitoring quality factors. This international standard promotes the adoption of aprocess approach when developing, implementing and improving the

effectiveness of a quality management system, to enhance customer satisfactionby meeting customer requirements..

The ISO 9000 is primarily concerned with "quality management". This meanswhat the organization does to fulfill:

- The customer's quality requirements, and- applicable regulatory requirements, while aiming to- enhance customer satisfaction, and- achieve continual improvement of its performance in pursuit of these objectives

ISO 9001 applies to all types of organizations. It doesnt matter what size theyare or what they do. It can help both product and service oriented organizationachieve standards of quality that are recognized & respected throughout theworld.

(EBM initially acquired ISO 9001:2000 in 1999 and converted to ISO9001:2008 in 2009 through URS).

ISO 14001:2004

The ISO 14001 is primarily concerned with "environmental management". This

means what the organization does to:

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- Minimize harmful effects on the environment caused by its activities, and- To achieve continual improvement of its environmental performance.

The ISO 14000 environmental management standards exist to help organizationsminimize how their operations negatively affect the environment. The majorobjective of the ISO 14000 series of norms is "to promote more effective andefficient environmental management in organizations and to provide useful andusable tools - ones that are cost effective, system-based, and flexible and reflectthe best organizations and the best organizational practices available forgathering, interpreting and communicating environmentally relevant information

(EBM acquired this certification in 2005 through URS).

ISO 22000:2005

The ISO 22000 international standard specifies the requirements for a foodsafety management system that involves the following elements.

- Interactive communication- system management- prerequisite programs- HACCP principles

ISO 22000 can be applied independently of other management system standardsor integrated with existing management system requirements.

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ISO 22000 integrates the principles of the Hazard Analysis and Critical ControlPoint (HACCP) system and application steps developed by the Codex AlimentArius Commission. By means of auditable requirements, it combines the HACCPplan with prerequisite programmes. ISO 22000 requires that all hazards that maybe reasonably expected to occur in the food chain, including hazards that may beassociated with the type of process and facilities used, are identified andassessed. Thus it provides the means to determine and document why certainidentified hazards need to be controlled by a particular organization and whyothers need not

(EBM converted from HACCP to ISO 22000:2005 in 2008 through URS).

ISO 27001:2005

ISO 27001 formally specifies a management system that is intended to bringinformation security under explicit management control. Being a formalspecification means that it mandates specific requirements. ISO 27001 requiresthat management: - Systematically examine the organization's information

security risks, taking account of the threats, vulnerabilities and impacts; - Designand implement a coherent and comprehensive suite of information securitycontrols and/or other forms of risk treatment (such as risk avoidance or risktransfer) to address those risks that are deemed unacceptable; and - Adopt anoverarching management process to ensure that the information security controlscontinue to meet the organization's information security needs on an ongoingbasis The ISO 27001 certificate does not necessarily mean the remainder of theorganization, outside the scoped area, has an adequate approach to informationsecurity management.

(EBM acquired this certification for its Information Systems department in

2007 through URS, and is planning to expand it throughout theorganization in upcoming years).

Halaal Certification:

Halaal refers to things or actions permitted by Shariah law without punishmentimposed on the doer. It is usually used to describe something that a Muslim ispermitted to engage in, e.g. eat, drink or use. Halaal Certification is recognition

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that the products are permissible under Islamic law. These products are thusedible, drinkable or usable by Muslims. For the consumer, the benefits of halaalcertification are clear i.e. knowing a product is halaal-certified means he or shedoes not have to bother checking all the ingredients. The consumer canpurchase the product with the assurance it does not contain anything that isharam or doubtful.

(EBM acquired Halaal certification in 2009 through IFANCA).

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SWOT ANALYSIS

SWOT Analysis3Strengths

A wide product line

The Pied Piper icon

A strong distribution network

Innovation in terms of new ingredients

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Value pricing

A ill implemented offensive strategy

Competitive advantage in terms ofmore varieties of biscuits

Established brand equity

WEAKNESSES

Vague impression in the minds of the consumers of the relationship of Pied

Piper with EBM & Peek Freans both

Inability to capitalize on individualBrand advertising

A wide product line which isCannibalizing the front runner brands

Ineffective innovation in productionThreats

Stiff competition from LU in terms ofPackaging, branding, and advertising

Changing consumer preferences

Availability of foreign brands, likeOreo

OPORTUNITIES

Converging the companys distributors

Availing more shelf space andEnhancing distribution coverage More concentration on the kids segment

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PRODUCT

BRANDS:

Under the brand range, Peek Freans, the company today carries the largestvariety ofbiscuit products including Marie, Gluco, Click, Sooper, Rio StrawberryVanila, Rio Choco Vanila, Rio Chocolate, Rio Vanila, Party, Peanut Pik, andPeanut Pista.

English Biscuit Manufacturers (Pvt) Ltd., or (EBM), is the country's leadingmanufacturer of biscuits and cookies since 1967, with an annual sales volumeand production capacity of more than 90,000 tons and a turnover of more thanRs. 12 billion. EBM is the only Company in the industry to have achievedrecognized international certifications pertaining to quality control, environmentalmanagement system and human resources management, including ISO9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People)Recognition. EBM is also the only food company to have been awardedEnvironmental Excellence Award for seven successive years 2004, 2005, 2006,2007, 2008, 2009 & 2010.

As a socially conscious company, EBM consistently supports varioushumanitarian causes in the areas of education, sports, healthcare and help forthe less privileged

The EBM Quality Commitment

The Management of English Biscuits Manufacturer's (Pvt) Limited affirms thatevery product carrying the icon of the Pied Piper has all the Quality attributes thatwill fully satisfy consumer / customer's expectations. I believe that our people andour products embody our corporate slogan "The legend Leads" in terms of qualitystandards, in terms of innovative capabilities, in terms of human skills.

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EBM Quality Management System binds the management and employees of thecompany to follow core policies:

I will critically examine and continuously review all aspects of operations,from procurement to be distribution of finished products, to identify anyshortcomings or space for cost - effective improvement and will undertakeappropriate quality enhancement measure.

I will identify and, where possible, anticipate changes in consumer tastesand preferences through Market Research, on the one hand, whileTechnical Research and Development on the other, in other to retain

leading edge in product and process development.

I will endeavor to recognize and establish Beat Practice criteria for allaspects of the company's activities, including the maintenance ofenvironmental protections and safety standards.

I will undertake continuous appraisal, feedback and training of ourpersonnel at every level to ensure optimum levels of productivity, creativityand job satisfaction.

The Management believes that every member of the organization at every

level shares and fully affirms the Company's Quality Commitment.

MARKET SHARE

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55%

20% KOLSON

16% LU

9% BISCONI

PRODUCTION FUNCTIONS

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MATERIAL RECEIVING

Supply Chain contact approved suppliers and purchase rawmaterial from them

Supplies come through trucks. In case of some materials,material is not off-loaded without testing.

Sampling and testing is carried out by QA personnel. Compositesample is collected to get good results.

After approval, incoming material is stored in raw material storeand packaging material store, whereas sensitive items such asbutter, color, flavors are stored in cold rooms.

In rest of the cases, Quality assurance performs testing aftermaterial is stored in relevant stores and then accepts/rejects thematerial.

PRODUCTION PROCESS

Information for daily production plan is supplied by marketingand sales department on the basis of customer demand. Keepingin view these factors, production plan is made.

PRODUCTION STEP 1: MIXING

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There are six different mixing areas.For a specific product, ingredients are weighed (according to pre-defined recipe) in weighing area

Mixing is carried out in either vertical or horizontal mixer,depending upon the nature of the product

PRODUCTION STEP 2: CUTTING

After mixing, dough is transferred from hopper to cutting line

There are total 6 lines, which are reserved for different products.

Dough passes through the conveyer belt and is shaped accordingto product

PRODUCTION STEP 3: BAKING

Unbaked biscuits enter the oven, conveyer belt is constantlymoving at a slow paceDifferent types of heating devices are present in oven whichprovides different temperature

Approximately 6 minutes are passed in oven during whichdifferent temperatures treatment are given to biscuits startingform lower to higher temperature

Conveyer belt then moves to Buffer Zone.COOLING (BUFFER ZONE)

After high temperature treatment baked, biscuits are not verystable and texture is not fully developed, thats why they arepassed through Buffer Zone for cooling

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It is merely an area consisting of relatively low temperature.Conveyer belt containing biscuits passes through this area tocool down the biscuits

PRODUCTION STEP 4: PACKAGING

After cooling, workers pick the biscuits for conveyer belt andplace them in different gauges set according to Ticky Pack (TP),Snack Pack (SP), Half Roll (HR) or Family Pack (FP)

Biscuits are automatically packed in final packaging material

(inner sealing) incase of TP, SN, HR, and then are finally packedin master cartons

FP is packed in 3 different packaging material; inner sealing,outer sealing and then finally master carton

Master cartons are sealed and are transferred to finished goodsStore

DISPATCH

Products are stored in finished goods store according to date aredispatched on FIFO (First in First Out) basis

QA performs final checking of finished products, after whichproduct is dispatched through trucks to different distributors

Distributors further distribute the product to retailers

EXPORT

Peak Freans products are also exported to different countries ofthe world including USA, UK, and Canada etc.

Export order is raised from sales and marketing department.

Export order contains the name, type, quantity, packingSpecifications of the product

Supply chain and production is enquired whether they can

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Produce the required amount of product in limited time.

After their approval, product is manufactured according tospecifications defined in export order

Product is packed in containers which are shipped to thedestination

After customs clearance, containers are delivered to addressmentioned on the export order

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Final Project Missing Customer & Competitors Analysis, Marketing Segmentation and Challeng

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