A C K N O W L E D G E M E N T

First and foremost, we express our gratitude to Almighty Allah, the sources of knowledge

and wisdom endowed to mankind, we have revealed unto you in order that you might

lead mankind out of darkness into light by their Lord's Leave to the Path of the All-

Mighty, the Owner of all Praise.

As a matter of fact, people tend to forget those who are behind their achievements and

have stood for them whenever they have needed assistance. A Malayan Proverb is “One

can pay back the loan of gold but one dies forever in debt to those who are kind”.

Realizing the fact we express our gratitude to those who have helped us throughout in

this project. In fact it will be rightful to say that without their co-operation this effort may

have ended up in disaster.

Our gratitude will be meaningless if we are not grateful to Allah for His kindness upon

us. His benevolence and blessings have made us capable. We are whole-heartedly

thankful to Him.

We are very thankful to our teacher Mr. Waqar Ahmed Sb. His sincere cooperation has

helped us to complete this project.

We are also very thankful to the institution of which we have been a part. And last but

not least, we pay gratitude to our parents who have supported us through out and have

been very helpful and co-operative. We are very thankful to them.

1

Table of contents

Introduction of bubble gum 3

History of bubble gum 3

Introduction of Asian Food Industry 5

Domestic Market Network 5

Production Facility 6

History Of Asian Foods 7

Mission Statement 7

Vision Statement 8

Situational Analysis 9

Uncontrollable Environment 12

PEST analysis 12

Key companies 22

Strength and weakness w.r.t. 5 P’s 31

Manufacturing Process 45

Long lasting gum idea 49

Future outlook of the company 49

New marketing strategy 50

2

Introduction to Bubble Gum:

Bubblegum is nothing but a special kind of chewing gum. Only they are less viscous than

the chewing gums to facilitate bubbles blowing. They are usually pink in color and have

a characteristic sweet and fruity flavor. Popular among people of all ages, several brands

of bubble gums are available today. One always feels curious about the background of

things they love. How they are made and where they came from are the commonest

questions that haunt the die hard bubble gum lovers. Here is a brief history of bubble

gum to satisfy their curiosity.

History of Bubble Gum:

The earliest form of bubble gum was known as Blibber-Blubber gum. The credit for

making the first bubble gum goes to Frank Fleer who invented the juicy chew long back

in 1906. But this first bubble gum of the world met with a tragic fate. In the absence of

proper marketing the Blibber-Blubber gums were never sold.

In the year 1928, Walter Diemer who was an employee of the Frank H. Fleer Company,

invented an improved version of bubble gum by modifying Fleer’s original recipe. It is

Diemer who was the pioneer in turning the bubble gum into pink. It is interesting to note

that he used nothing else other than pink because at that time only pink color was

available at his disposal. In appearance as well as in taste it was truly an improvement

over the initial product. The result was predictable and this creation of Diemer, which

was called Double Bubble gum, became an instant hit. This marked the beginning of a set

of successful attempts in bubble gum making and marketing.

During World War II, Topps Company, another gum giant introduced a new brand of

bubblegum called Bazooka. Their aggressive marketing strategies involved the launching

of a small comic strip based on the character Bazooka Joe which was offered as a

package with the gums. This was the first time from when bubble gums started to

represent fun and raw energy.

3

Today there are many bubble gum manufacturing companies who really worked hard for

the improvement of quality of the bubble gums in terms of taste as well as non sticking

properties. Bubble Tape, Big League Chew, Bubble Yum and Bubblicious are some of

the big shots. Some of them sponsor big international events like bubble blowing

contests. Since their inception in 2002 by Doble Bubble, they have become extremely

popular and reached out to other corners of the globe.

4

More than a brand name

a symbol of quality

Introduction Asian Foods:

Asian Food Industries Limited (ASIAN FOOD INDUSTRIES) is the manufacturer of

‘Mayfair’ Brand confectionery products from Pakistan. The company has been marketing

its premier quality sugar confectionery products in the domestic and export market for

more than thirty years. Setup in 1969, ASIAN FOOD INDUSTRIES was located in

Karachi, commercial hub & port city of Pakistan. With the diversification into textile

business, it was decided to consolidate Mayfair Group’s plant locations. The production

facility of ASIAN FOOD INDUSTRIES was relocated to Raiwind Industrial Area.

Raiwind a satellite town 30 kilometers from Lahore, also houses Mayfair Spinning Mills

Limited. Mayfair Group takes pride in both its businesses; Mayfair Spinning produces

100% cotton yarn of premium quality for the export market.

Asian Food Industries takes pride in its professional team administering work with the

aid of the latest management and communication systems. The ASIAN FOOD

INDUSTRIES team is 550 strong, highly motivated and dynamic professionals.

Asian Food Industries with a strong customer focus has independent marketing teams for

the domestic and international markets. The company lays a strong emphasis on

employee development and career progression. Individuals ready to take up the high

paced challenge are provided a conducive environment.

Domestic Market Network:

The Pakistani market is largely trade driven with more than 60% of the sales coming

from the 400 wholesale markets spread all across Pakistan. This trend is now giving way

5

to more sophisticated distribution mechanisms. Mayfair has a distribution network of 375

distributors covering the length & breadth of the country.

The sales & marketing team of Asian Food Industries is lead by General Manager

Marketing. The company has structured its sales organization into three regions to ensure

availability of its products throughout Pakistan, a country of 140 million plus population.

The sales team is lead by a National Sales Manager, managing a Regional Managers,

Zonal Managers and dynamic sales officers. In all the sales & distribution network is

energized by a team of 100 sales executives.

Production Facility:

Mayfair currently has the capacity to produce 81 tons of sugar confectionery per day. The

product category with the largest market share, as well as biggest production capacity, is

Deposited Candy. This is followed by Hard Boiled Candies, Bubble Gums, Toffees,

Chew Toffees and Soft-boiled Toffees. Asian Food’s foray into sweet confectionery was

with the manufacture of candies and toffees.

In 1979 Mayfair became the first company to introduce bubble gum to the Pakistani

market. To fulfill this latent need of the consumers, Mayfair bought the first fully

automated and computerized bubble gum machine from Gabler and Rose Theegarten

with a capacity of producing five tons per day.

Subsequent expansion occurred with the introduction of the chew toffee line consisting

of a computerized Terberaak, Gabler and Rose Theegarten plant. Further addition of

capacities added new machines of Ruffinati, Hoberger, Bosch and Hansella. Latest

acquisition of a deposited candy plant from Bepex, Terberaak, Eurosicma and GD Acma

allows ASIAN FOOD INDUSTRIES to produce deposited candy on a modern plant and

matching the premium quality candies produced by the notable international market

leaders.

6

History of Asian Foods:

Late Mr. Mehboob Elahi established Asian food Industries in 1969 with an objective to

produce "international quality" confectionery products in Pakistan. Through sheer

hardwork, fair business dealings and unmatched quality products, Mr. Mehboob Elahi

succeeded in making Asian Food Industries the undisputed market leader in Pakistan.

Mr. Jawed Iqbal, son of Mr. Mehboob Elahi, joined the group in mid seventies Modern

education and a broad western exposure, assisted Mr. Jawed Iqbal in modernizing and

further expanding business. His deep business insight and effective marketing

methodologies are his major strengths. His immense experience led him to set up, He

thought of setting up a spinning unit. The group again worked with utmost zeal and

devotions and finally in 1993, Mayfair Spinning was installed and started giving fruitful

results.

Recently, Mr. Jawed Iqbal's son Mr. Shahid Iqbal has joined the group. He has been

trained extensively in the United States and his vigor and knowledge of modern

textiles/spinning has resulted in an overall uplift of yarn's quality being manufactured at

Mayfair Spinning Mills.

MISSION STATEMENT:

Asian Foods has been dedicated to its customers by providing confectionery

products, premium in quality, throughout their lives. ASIAN FOOD INDUSTRIES takes

pride in each child who has enjoyed Mayfair candies, grows up to retain Mayfair as the

choice for his family’s sweet temptations. As a company Asian Foods has a simple but

the most important mission:

“To make our customer’s happy”

7

Vision Statement:

ASIAN FOOD Industry’s existence is the story of pioneer-ship and adherence to

stringent quality controls and evolution of dynamic management systems. From a modest

beginning, the company has evolved into an enviable position of many firsts: first to

introduce bubble gum in Pakistan, first to introduce Chew Toffee in Pakistan, first to

attain an ISO certification and first to introduce deposited candy in Pakistan. We look

forward to collaborating with our international partners in creating synergies in

manufacturing, marketing and distribution ventures. With dedicated efforts ASIAN

FOOD INDUSTRIES sees itself becoming an international player of significance in the

confectionery business. The organization plans to achieve this by being steadfast in its

mission and maintaining a clear vision:

“To be the best in our business and customer’s first choice”

Team Values: Customer Satisfaction Passion for Growth Teamwork & Empowerment Good Corporate Citizenship

Quality:

At Asian Food Industries product quality & wholesomeness is the guiding principle in

defining its quality management system. The company has an independent QMS control

and assurance team. With untiring & dedicated efforts the company has attained the

HACCP certification during the year 2003. ASIAN FOOD INDUSTRIES has also

upgraded its ISO9000 certificate during 2003. Both these certifications reflect upon the

emphasis ASIAN FOOD INDUSTRIES places on having in place a stringent & rigorous

system of quality management at ASIAN FOOD INDUSTRIES. In this pursuit of

excellence, the company is in the process of qualifying for ISO14000 certification.

Asian Food Industries Ltd ensures its highest commitment to quality by:

8

Compliance to the applicable regulatory requirements. Meeting Customers’ requirements and expectations. Promoting good manufacturing practices in confectionery. Progressive reduction in all types of wastes. Promoting continuous quality improvement initiatives.

Situation Analysis:

Situation analysis is a term which involves evaluating the situation and trends in a

particular company's market. Situation analysis is often called the "three c's", which

refers to the three major elements that must be studied:

General State of Economy:

Pakistan is an Islamic and rapidly developing country which has faced a number of

challenges on both political and economic fronts... Majority of people lived in ruler areas.

Agriculture is the mainstay of Pakistan's economy, employing almost 50% of the

population. Wheat, rice, cotton, sugarcane, and tobacco are the chief crops, and cattle and

sheep are raised. Most of Pakistan's agricultural output comes from the Indus basin. The

country is now self-sufficient in food, as vast irrigation schemes have extended farming

into arid areas, and fertilizers and new varieties of crops have increased yields.

Pakistan's industrial base is able to supply many of the country's needs in consumer

goods, although production has slowed in recent years. The country's natural resources

provide materials for such industries as textile production (the biggest earner of foreign

exchange), oil refining, metal processing, and cement and fertilizer production.

Remittances from Pakistanis working abroad constitute the second largest source of

foreign exchange. Since the mid-1950s electric power output has greatly increased,

mainly because of the development of hydroelectric power potential and the use of

thermal power plants. Pakistan's major imports are petroleum, machinery, transport

equipment, chemicals. The chief trading partners are the European Union nations, the

United States, Japan, and China. In the late 1990s, following years of lax fiscal policies,

Pakistan appeared on the verge of bankruptcy, with a foreign debt of over $30 billion.

9

Customers:

ASIAN FOOD INDUSTRIES owner of Mayfair Brand has been marketing its products

since 1969 in the international and domestic market. The company pursuing an

aggressive marketing strategy and adhering to trade mark rules & regulations of its

international markets, supplies under alternate trade marks in number of countries.

Starting with a modest plant base, but with steady growth and induction of new machines

and technology, Mayfair today has a leading share in the Pakistan’s domestic market of

sugar confectionery.

Mayfair is currently the market leader in Deposited Candy category with the brand of

“Mayfair Creamers” in the domestic market. The company has achieved significant

success in marketing its candies & toffees in more than 20 countries of the globe. The

company strives to continually develop new products for differing taste preferences in

diverse markets.

Asian Foods also has a rich experience of supplying its premium quality confectionery

products to international marketing companies under their prestigious brands. This allows

the company to continually learn from global experiences of large corporations.

Domestic Market Network:

The Pakistani market is largely trade driven with more than 60% of the sales coming

from the 400 wholesale markets spread all across Pakistan. This trend is now giving way

to more sophisticated distribution mechanisms. Mayfair has a distribution network of 375

distributors covering the length & breadth of the country.

The sales & marketing team of Asian Food Industries is lead by General Manager

Marketing. The company has structured its sales organization into three regions to ensure

availability of its products throughout Pakistan, a country of 140 million plus population.

The sales team is lead by a National Sales Manager, managing a Regional Managers,

10

Zonal Managers and dynamic sales officers. In all the sales & distribution network is

energized by a team of 100 sales executives.

Costs:

Cost of a product depends upon different economical factors, GDP, GNP, Dollar rate of

market, fluctuation in oil market.

Competition:

After launching this product our company has to face number of local competitors. These

all companies are well established in the same products. These companies are HILAL,

KINGS FOOD, UNION, krihman, B.P etc.

Product market:

Product type, varieties, and brands;

Mayfair has a wide variety related to sweets. They are dealing with toffees, bubbles and

chocolates also. Their brand is Mayfair.

Sale volume and trends:

Their sales volume is in a very good proportion a compare to other sweet brands. There is

a perfect competition in market.

Growth rate:

As mentioned earlier there is a perfect competition in market but due to good quality and

reasonable prices their growth rate is very good. But unfortunately we are unable to give

exact facts and figure about Mayfair here.

11

Market share:

Market share of Mayfair is approximately 40% candy land has a share of 30% and others

cater market share of remaining 30%.

Uncontrollable environments

Political analysis: Political analysis is as follows:

Political instability:Politically Pakistan is not a stable country. General elections are expected in near future.

And the current situation of politics in unpredictable. So, this is not a right time to invest

in Pakistan in such a political situation.

Taxes: Another major issue here is the uncontrollable rise in taxes. Govt. is implementing a huge

load on investors and manufacturers in terms of taxes. They charge taxes on sales of the

company. Another important point is that as there is not a fair politics so those having

personal contacts in parliament can easily get favor in tax relaxation. This helps others to

gain much profit due to illegal approach and favoritism.

12

Imports & exports: Govt. has strict policies for impost. In case of taxes and quotas if we would import our

raw material from abroad it will affect our cost.

Animal fats: We can also face a political issue if in manufacturing of our product we use animal fats.

As it is not hilal by Islamic law and also is forbidden in Pakistan’s constitution.

Relationship with non- Muslim countries: Govt. is also making friendly relation ship with non Muslim countries and opposition is

not ready to accept it. If special food preservatives would be import from Israel or

Sweden then it would be a great problem as opposition would not allow us to do so. So

we have to take care in this context also.

Paper work: We can also face problem in paper work during launch of our product. Because in

Pakistan there is a strong control of bureaucracy and we can face problem in order to get

copy rights of our products.

Prices of related goods:Due to rising price of petrol it can increase our cost. Because due to increasing prices of

petrol it affects the price of every other good.

Govt. friendly policies for foreign investors: Another political issue is that Govt. is attracting foreign investors they are promoting

them a lot. If in case any foreign investor invests in this industry then it can be a threat

for us. On other hand govt. has strict policies for exporters. Especially china has

penetrated in Pakistan’s economy on a large scale due to friendly relationship this can be

a threat.

Tattoos: The packaging of our product must be according to our cultural values and norms. If they

are against the values then it can face rejection from politicians which latterly can affect

our image in customers.

13

Govt. policies for copy right: There is no such law for copy right in Pakistan and there is not any implementation in its

favor food industry is facing a great problem because in remote areas and different small

retail shops we found third class product having a name of Mayfair’s.

Economical Factors:

Economic situation of the industry:

Economy of Pakistan:

Economy Of Pakistan

Currency 100 Pakistani Rupee (PKR)= 60.37 US dollar= 77.48 Euro

Fiscal year July 1—June 30

Current fiscal year

(2006—2007)

Central bank The State Bank of Pakistan (SBP)

Trade organizations and treaties

ECO, SAFTA, ASEAN, WIPO and WTO

Fiscal Budget $19.8 billion (revenue)$25.07 billion (expenditure)

Inflation rate (monthly)

(FY05 - 06 est.)

People

President Pervez Musharraf

Prime Minister Shaukat Aziz

Commerce Minister

Humayun Akhtar Khan

14

SBP Governor Dr. Shamshad Akhtar

SECP Razi ur Rehman Khan

Indices

Corruption Perceptions Index

142nd[2] (2006)

Index of Economic Freedom

89th (mostly unfreeze)[3] (2007)

UN Human Development Index

134th[4] (2006)

Gross Domestic Product (GDP)

GDP at PPP $475.5 billion[5] (2007)

GDP at current exchange rates

GDP real growth rate (at PPP)

6.9% [6] (2006 est.)

GDP growth rate 6.6% (2006 est.)[7]

GDP per capita $3,004.5 (2007)[1]

GDP by sector Agriculture: 21.6% industry: 25.1% services: 53.3% (2006 est.)[7]

Demographics

Population 165,803,560 (2006 est.)

Population below poverty line

23% (2006)

Labor force 48.29 million

Unemployment rate

6.6% (2006 est.)

Production

Agricultural products

cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs, shrimp, poultry, tea

15

Main industries Automotive, textiles, chemicals, food processing, steel, transport equipment, machinery, beverages, construction, materials, clothing, paper products.

International trade

Imports (2006 est.)

$28.58 billion f.o.b (57th [8]) (2006 est.)

Major imported commodities

Petroleum, Petroleum products, Machinery, Plastics, Transportation equipment, Edible oils, Paper and paperboard, Iron and steel, Tea

Main import partners (2006)

China 14.7%, Saudi Arabia 10.1%, UAE 8.7%, Japan 6.5%, United States 5.3%, Germany 5%, Kuwait 4.9% (2006 est.)[7]

Exports $19.24 billion (2006 est.) (67th[9]) (2006 est.)

Major exported commodities

textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather goods, sports goods, chemicals manufactures, carpets and rugs.

Main export partners

United States 22.4%, UAE 8.3%, UK 6%, China 5.4%, Germany 4.7% (2006 est.)

Overall balance of payments (2006)

-$1.753 billion[10]

Note: Data is for 2005-06, unless specified otherwise. Pakistan's ranking, where applicable, are specified in brackets, and linked to the source data. CIA Pakistan Section from The World Fact book, dated November 1, 2005. Pakistan Government Website

Technological analysis:

We are launching our product under name of Mayfair. We have plant for production and

for our new product we have not to bring new technology and new development. This

will benefit us in our cost saving and it would be a great strength for us. As bubble gum

16

is made by cooking all ingredients in large containers so we don’t require new

technology for it.

Mayfair currently has the capacity to produce 81 tons of sugar confectionery per day. The

product category with the largest market share, as well as biggest production capacity, is

Deposited Candy. This is followed by Hard Boiled Candies, Bubble Gums, Toffees,

Chew Toffees and Soft-boiled Toffees. Asian Food’s foray into sweet confectionery was

with the manufacture of candies and toffees.

In 1979 Mayfair became the first company to introduce bubble gum to the Pakistani

market. To fulfill this latent need of the consumers, Mayfair bought the first fully

automated and computerized bubble gum machine from Gabler and Rose Theegarten

with a capacity of producing five tons per day.

Subsequent expansion occurred with the introduction of the chew toffee line consisting

of a computerized Terberaak, Gabler and Rose Theegarten plant. Further addition of

capacities added new machines of Ruffinati, Hoberger, Bosch and Hansella. Latest

acquisition of a deposited candy plant from Bepex, Terberaak, Eurosicma and GD Acma

allows ASIAN FOOD INDUSTRIES to produce deposited candy on a modern plant and

matching the premium quality candies produced by the notable international market

leaders.

Sigma Mixture

Twin-Color Rope Extruder

Six Way Cooling Tunnel

Automatic Bubble-Gum Cut & Fold Wrap Machine

(Double End Top & Side Fold)

17

Sigma Mixture:

Technical Data

Application  

Manufacturing of Bubble Gum / Chew gum / Gum Base and final mixing of

essence and color

Capacity 200 Liters

Drum Dimension (L X W X H) 760 X 760 X 760

Steam Working Pressure 60 Lb./Sq. Inch

DriveMixingTilting

  10 H.P. Three Phase 1 H.P. Three Phase

Dimensions (L X W X H) 2000 mm X  1225 mm X 1325 mm

Weight  Net 1000 Kg. 

                   Heavy Duty steam Jacketed Bubble Gum Mixer is used to manufacture Gum Base, Bubble Gum and Chew gum material. If do not want to use steam then it takes about 6-7 hours to manufacture gum base. After manufacturing gum base, final mixing of color & essence is done in mixer which takes about half hour. Material can be discharged by tilting the mixer which is motorized operation.

18

Twin-Color Rope Extruder:

Technical Data

ApplicationRope forming of bubble gum or Chew-

Gum material

Capacity 1 Ton/Shift

Rope DiaAccording to requirement (Flat or

Round)

Drive 1524 mm X 914 mm 

Dimensions (L X W X H) 1225 mm X 1200 mm X  525 mm

Weight Net 500 Kg 

                                  Bubble Gum Twin color rope extruder is used to manufacture single or twin color rope of required size or flat according to requirement from Bubble Gum or Chew-Gum material. The material is fed manually into the hopper and rope formed is collected in trays or discharged onto cooling conveyor

19

Six Way Cooling Tunnel:

Technical Data

Application Cooling of Bubble-Gum Rope  

Capacity One Tonne / Shift

Deck 6 0r 13 deck

Drive 2 H.P D.C. Drive

Dimensions (L X W X H) 6000 mm X 300 mm X 2000 mm

              Six Ways cooling conveyor is used to cool the rope coming out from the extruder. It is necessary to cool the rope so as to make the cutting and wrapping operation easy. If you don't take this conveyor then the formed rope has to be kept in AC room for more than 4 hours. This conveyor makes the operation online and eliminates AC room. The conveyor has to be installed with air conditioner

20

Automatic Bubble-Gum Cut & Fold Wrap Machine

Technical Data

ApplicationToffee Cutting & Wrapping Machine

(Side Fold)

Capacity600 PCs/Min

(Depending on Size of Toffee , wrapping and forming material used)

Product Size  Length Toffee Width Toffee

Thickness Toffee

 Length 20-30 mm. Width 10-20 mm.

Thickness 6-12 mm.

Dimensions (L X W X H) 1600 mm X 1250 mm X 1150 mm

Weight Net 1000 Kg. 

                          This machine is available in four versions. (I) Both side twist wrap (ii) One side twist and one side fold wrap (iii) Both side fold wrap (iv) Both side top fold wrap. This is high speed and latest design machine. It can be installed with photoelectric control system for Photo registration

21

Social Factors:

Class:

In Pakistan there are four major classes these classes are elite class, upper middle

class, middle class and lower class. We will target the middle and upper class.

Demographic Factors:

We will cater both males and females and age between 10 to 30 years. We planned to cover only urban area.

Lifestyle statisticsView full size

PAKISTANI LIFESTYLE STATS:   All Stats  

Life satisfaction: 4.3

Life satisfaction inequality: 1.6

Political orientation > Far left: 0

Political orientation > Far right: 0.2%

Roller coasters: 1

    (per capita): 0.062 per 10 million people PAKISTANI LIFESTYLE STATS:   All Stats  

Life satisfaction: 4.3

Life satisfaction inequality: 1.6

Political orientation > Far left: 0

Political orientation > Far right: 0.2%

Roller coasters: 1

    (per capita): 0.062 per 10 million people

PAKISTANI LIFESTYLE STATS:   All Stats  

Life satisfaction: 4.3

22

View this page with:    Just Stats     Sources     Definitions     Both  

View this page with:    Just Stats     Sources     Definitions     Both  

View this page with:    Just Stats     Sources     Definitions     Both  

Life satisfaction inequality: 1.6

Political orientation > Far left: 0

Political orientation > Far right: 0.2%

Roller coasters: 1

    (per capita): 0.062 per 10 million people

Social Activities:

Sports man and athletes are our major focused criteria.

Key Companies

BP:Over five decades of quality evolution and innovation have made B.P. a recognized name

of quality not only in Pakistan but also abroad. This has been achieved through the

management commitment to the principle of continuous improvement in our food

technologies and robust quality vigilance by our highly qualified personnel and food

technologist.

In our facility, they are manufacturing wide range of product categories like Chewing

Gum, Bubble Gum, Jellies, Toffees, Chews, Candies, Chocolates, Biscuits and Wafers

under one roof and also exporting them to different countries like Australia, New

Zealand, Taiwan, U.A.E., K.S.A., Turkey, Lebanon, Korea and many other parts of the

world.

B.P. Industries (Put) Ltd. Has also crossed the milestone of ISO 9001:2000 certification

and directed itself towards advance quality management techniques like TQM with the

aim to enhance the customer satisfaction in all deliverables.

Key Products:

23

Candy land:

Ismail Industries Ltd. was incorporated as a public limited company in 1989. The

company manufactures high quality confectionery products under the brand name

CANDYLAND. In 2002, they acquired a biscuit company from IBL (Meiji) and

expanded their portfolio into biscuits under the brand name BISCONNI. With increasing

competition from small-scale manufacturers, in 2003 they launched FIRST, another

confectionery company, to cater to lower priced segment. Recently, Ismail Industries

Limited has pursued a strategy of backward integration and portfolio diversification with

the establishment of ASTRO PACK, a unit for manufacturing of Cast Polypropylene.

Key Products:

CANDIES:

Hard boiled

Filled

Deposited

24

Laminated (Honey combed) candies

TOFFIES:

Filled

Plain

CHEW TOFFIES:

25

BUBBLE GUM:

Bubble gums

Stick chewing gums

Mint gums

Liquid filled gums

26

JELLIES:

Coated Jellies

Uncoated Jellies

CHOCOLATES:

Enrobed Candy Bars

Enrobed Candy Bars

27

Lolly pop:

Gum Filled

Plain

Whistle Lollipop

MARSHMALLOWS:

Hilal:

28

Hilal Foods in an ISO 9001: 2000 certified company producing quality products since

1957. Located in Karachi, the largest city of Pakistan, it has access to two major seaports

it is one of the largest manufacturer of Biscuits, Candies, Toffees, Bubble Gums, Wafers,

& Enrobed Chocolate Products. Besides catering to the large local market, it also exports

its production to diverse range of countries from USA to South Africa to east & West

Africa to Bangladesh. Union Products are a household name in Pakistan and conform to

the demanding international quality and specification standards.

Key Products:

Bubble gum:

Bakery cake:

Candies:

Jellies:

29

Khamisa

They deal in a very wide and diversified range of products covering areas such as

FLAVOURS, FOOD COLOURS, FOOD CHEMICALS, FOOD INGREDIENTS and

MILK POWDERS. No other business concern in the country has such as big variety of

products. In other words we are considered as part and parcel of each and every food

industry, since everybody prefers to do shopping less than one window.

Key product:

30

31

Strengths and weaknesses of the company with respect to 5 P’s

1. Product

2. Place

3. Price

4. Promotion

5. Positioning

1: Product

Product variety: Mayfair produced these products:

A. Candies

B. Chew toffees

C. Toffees

D. Gums

32

Quality: At Asian Food Industries product quality & wholesomeness is the guiding

principle in defining its quality management system. The company has an independent

QMS control and assurance team. With untiring & dedicated efforts the company has

attained the HACCP certification during the year 2003. ASIAN FOOD INDUSTRIES

has also upgraded its ISO9000 certificate during 2003. Both these certifications reflect

upon the emphasis ASIAN FOOD INDUSTRIES places on having in place a stringent &

rigorous system of quality management at ASIAN FOOD INDUSTRIES. In this pursuit

of excellence, the company is in the process of qualifying for ISO14000 certification.

Design:

A. Candies: These can be manufactured in ball, disk and bar shapes and can have variations

in weight, color, flavor and texture.

B. Chew toffees These are in stick shape.

C. Toffees

33

Toffees are in bars shapes like:

D. Gums These are in different shapes stick, bar shape and circle shape like:

Features: Candies:

Chew toffees:

Our range of Chew Toffees includes:

Toffees:

34

Brand name:

Packaging : These are packed individually in small or large bags, by weight or numbers

and also in bulk packs.

Size and weights:

CODE D-001-S1

PRODUCT NAME Strawberry & Cream

UNIT Bag

WEIGHT OF PIECE (GM) 5.7

PIECES PER UNIT 35

WEIGHT PER UNIT 200

UNITS PER CARTON 60

35

NET WEIGHT OF MASTER CARTON (KG)

12

MASTER CARTONS IN 20 FT CONTAINER

720

PRODUCT NAME Butter & Cream

UNIT Bag

WEIGHT OF PIECE (GM) 5.8

PIECES PER UNIT 60/35

WEIGHT PER UNIT 342/200

UNITS PER CARTON 30/60

NET WEIGHT OF MASTER CARTON (KG)

10.2/12

MASTER CARTONS IN 20 FT CONTAINER

692/672

CODE  

PRODUCT NAME

Refresh Mint

UNIT Bag

WEIGHT OF PIECE (GM) 5.7

PIECES PER UNIT 35

WEIGHT PER UNIT 200

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG) 12

MASTER CARTONS IN 20 FT CONTAINER 720

36

CODE D-008-SC1

PRODUCT NAME Secret

UNIT Bag

WEIGHT OF PIECE (GM) 5.7

PIECES PER UNIT 35

WEIGHT PER UNIT 200

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG)

12

MASTER CARTONS IN 20 FT CONTAINER

720

CODE D-009-MF1

PRODUCT NAME Milkfuls

UNIT Bag

WEIGHT OF PIECE (GM) 5.7

PIECES PER UNIT 35

WEIGHT PER UNIT 200

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG)

12

MASTER CARTONS IN 20 FT CONTAINER

720

37

CODE  

PRODUCT NAME Strawberry & Banana

UNIT Bag

WEIGHT OF PIECE (GM) 5.7

PIECES PER UNIT 35

WEIGHT PER UNIT 200

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG)

12

MASTER CARTONS IN 20 FT CONTAINER

720

PRODUCT NAME Coffee Candy

UNIT Bag

WEIGHT OF PIECE (GM) 4.5

PIECES PER UNIT 144/180

WEIGHT PER UNIT 648/810

UNITS PER CARTON 12/12

NET WEIGHT OF MASTER CARTON (KG)

7.8/9.7

MASTER CARTONS IN 20 FT CONTAINER

750/520

38

CODE CC-008-MM

PRODUCT NAME Milky Moment

UNIT Box

WEIGHT OF PIECE (GM) 5

PIECES PER UNIT 100

WEIGHT PER UNIT 500

UNITS PER CARTON 30

NET WEIGHT OF MASTER CARTON (KG)

15

MASTER CARTONS IN 20 FT CONTAINER

650

CODE CC-005-BN

PRODUCT NAME Milk Bon Bon

UNIT Bag

WEIGHT OF PIECE (GM) 5

PIECES PER UNIT 60

WEIGHT PER UNIT 300

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG)

18

MASTER CARTONS IN 20 FT CONTAINER

650

CODE CC-009-FW

PRODUCT NAME Fizzy Wizzy

UNIT Bag

39

WEIGHT OF PIECE (GM) 7

PIECES PER UNIT 35

WEIGHT PER UNIT 245

UNITS PER CARTON 60

NET WEIGHT OF MASTER CARTON (KG) 14.7

MASTER CARTONS IN 20 FT CONTAINER 650

CODE CC-002-OR

PRODUCT NAME Orange

UNIT Bag

WEIGHT OF PIECE (GM) 5

PIECES PER UNIT 40

WEIGHT PER UNIT 200

UNITS PER CARTON 72

NET WEIGHT OF MASTER CARTON (KG)

14.4

MASTER CARTONS IN 20 FT CONTAINER

650

PRODUCT NAME Mon Ami

UNIT Bag

WEIGHT OF PIECE (GM) 4

PIECES PER UNIT 60

WEIGHT PER UNIT 240

UNITS PER CARTON 66

NET WEIGHT OF MASTER CARTON (KG)

15.8

MASTER CARTONS IN 20 FT CONTAINER

588

40

PRODUCT NAME Butter Toffee

UNIT Bag

WEIGHT OF PIECE (GM) 4

PIECES PER UNIT 60

WEIGHT PER UNIT 240

UNITS PER CARTON 66

NET WEIGHT OF MASTER CARTON (KG)

15.8

MASTER CARTONS IN 20 FT CONTAINER

588

PRODUCT NAME Eclairs

UNIT Bag

WEIGHT OF PIECE (GM) 3.9

PIECES PER UNIT 40

WEIGHT PER UNIT 155

UNITS PER CARTON 90

NET WEIGHT OF MASTER CARTON (KG)

14

MASTER CARTONS IN 20 FT CONTAINER

588

PRODUCT NAME Tiger Bubble

UNIT Box

WEIGHT OF PIECE (GM) 5.4

PIECES PER UNIT 36

41

WEIGHT PER UNIT 195

UNITS PER CARTON 50

NET WEIGHT OF MASTER CARTON (KG)

9.7

MASTER CARTONS IN 20 FT CONTAINER

1456

PRODUCT NAMETutti FruittiOrange

UNIT Box

WEIGHT OF PIECE (GM) 5

PIECES PER UNIT 48

WEIGHT PER UNIT 240

UNITS PER CARTON 48

NET WEIGHT OF MASTER CARTON (KG)

11.5

MASTER CARTONS IN 20 FT CONTAINER

1500

Services: Asian Food Industries is always planning for future challenges. A proactive

strategy is pursued in acquisition of newer technologies and techniques in order to

develop new products in a more hygienic environment with increased efficiencies. In the

year 2004 the company will be pleased to offer its valuable customers, savory and

delicious biscuits produced on the most modern biscuit making plant. This is part of the

company’s plan to broaden its product base and capitalize on its wealth of experience in

the confectionery industry.

2: Price:

List price:

42

Candies 50 paisa to 1Rs

Chew toffees 1Rs

Gums 1Rs

Toffees 1Rs

Discounts:

Mayfair not gives any discount on their products to individual customer who

purchases few candies. But if the shops man buys the products of candy land in packets

then they reduce their packet price but little some.

Payment period:

You can buy the Mayfair product only on net payment. But the stores and

shops man can buy on account and the payment period is almost one week.

3: Promotion:

Sales promotion:

No sale promotion

Advertising:

When Mayfair launches their new products they advertise on TV and

paste their posters and stickers on shops but also advertise their different products on TV

and news paper which are very liked by the children. Mayfair so much advertises their

some products like Tiger bubble, Mayfair creamers, Secret and Éclairs.

Direct marketing:

43

No direct marketing because the quality, taste, features and variety

of Mayfair makes different it to others. The features of their products are the great effect

on the children for example Eclairs, Mayfair creamers, milk fuls and fizzy wizzy. Due to

this children like Mayfair products and enjoy eating products.

4: Place Channels:

TV, shops, stores. Even every store and shop has Mayfair products.

Locations:

The Pakistani market is largely trade driven with more than 60% of the

sales coming from the 400 wholesale markets spread all across Pakistan. This trend is

now giving way to more sophisticated distribution mechanisms. Mayfair has a

distribution network of 375 distributors covering the length & breadth of the country.

The sales & marketing team of Asian Food Industries is lead by a General Manager

Marketing. The company has structured its sales organization into three regions to ensure

availability of its products throughout Pakistan, a country of 140 million plus population.

The sales team is lead by a National Sales Manager, managing a Regional Managers,

Zonal Managers and dynamic sales officers. In all the sales & distribution network is

energised by a team of 100 sales executives.

5: Positioning:

Mayfair positioning is very good in children because Mayfair

products are very different in designs from others and they are very innovative and this is

the company which become first to introduce bubble gum in 1979. In children Mayfair

44

products are very popular and they like Mayfair candies and bubbles due to their taste

and enjoying life.

Strengths of Mayfair

Asian Food Industries is always planning for future challenges. A proactive

strategy is pursued in acquisition of newer technologies and techniques in order to

develop new products in a more hygienic environment with increased

efficiencies.

Asian Food Industries takes pride in its professional team administering work

with the aid of the latest management and communication systems. The ASIAN

FOOD INDUSTRIES team is 550 strong, highly motivated and dynamic

professionals.

Asian Food Industries with a strong customer focus has independent marketing

teams for the domestic and international markets. The company lays a strong

emphasis on employee development and career progression. Individuals ready to

take up the high paced challenge are provided a conducive environment.

Starting with a modest plant base, but with steady growth and induction of new

machines and technology, Mayfair today has a leading share in the Pakistan’s

domestic market of sugar confectionery.

Mayfair is currently the market leader in Deposited Candy category with the

brand of “Mayfair Creamers” in the domestic market.

The company has achieved significant success in marketing its candies & toffees

in more than 20 countries of the globe.

45

The company strives to continually develop new products for differing taste

preferences in diverse markets.

Asian Foods also has a rich experience of supplying its premium quality

confectionery products to international marketing companies under their

prestigious brands. This allows the company to continually learn from global

experiences of large corporations.

Mayfair currently has the capacity to produce 81 tons of sugar confectionery per

day. The product category with the largest market share, as well as biggest

production capacity, is Deposited Candy.

In this pursuit of excellence, the company is in the process of qualifying for

ISO14000 certification.

The Manufacturing Process

RAW MATERIAL REQUIRED

Sugar (Sucrose)

Liquid Glucose

Citric Acid

Flavors and colors

Packaging material

Paraffin wax

Dusting powder

Other material required for special gum.

46

While the specific ingredients in gum might be a secret, the process for making gum is

not. The first chewing gum making machine wasn't even patented, and today the

procedure is considered standard throughout the industry.

Preparing the chicle 1 If natural latex is to be used, it must first be harvested and processed. The tall

32.79 yard (30-meter) chicle tree is scored with a series of shallow Xs, enabling

the chicle to flow down into a bucket. After a significant

Chewing gum base consists either of natural latex or a synthetic substitute.

Natural latex such as chicle is harvested by making large X-marks on rubber trees

and then collecting the substance as it runs down the tree. After grinding the base

to form a coarse meal, the mixture is dryed for a day or two.

Next, the mixture is heated in large kettles while the other ingredients are added.

Large machines then pummel, or "knead," the mass until it is properly smooth

and rubbery, and it is put on a rolling slab and reduced to the proper thickness.

47

Amount of chicle has accumulated; it is strained and placed in large kettles.

Stirred constantly, it is boiled until it reduces to two-thirds of its original volume.

It is then poured into greased wooden molds and shipped.

Grinding, mixing, and drying thelatex

2 The natural and/or artificial gum bases are first ground into a coarse meal and

mixed to ensure uniform consistency. The blend is then placed in a warm room to

dry for a day or two. During drying, hot air continually passes over the mixture.

Cooking and purifying the base

3 Next, the gum base is cooked in kettles at 243 degrees Fahrenheit (116 degrees

Celsius) until it has melted into thick syrup. To purify it, workers pass it through

screens and place it in a high speed centrifuge before registering it, this time

through finer screens.

Blending additional ingredients 4 The gum base is now ready for additives. It is placed in kettles to be cooked,

and additional ingredients are stirred in by large steel blades. First, extremely fine

powdered sugar and corn syrup are added. Flavorings are added next, followed by

softeners. When the mixture is smooth enough, it is rolled out onto belts and

cooled by being exposed to cold air.

Kneading and rolling the gum 5 The next step is kneading. For several hours machines gently pummel the mass

48

After being dusted with powdered sugar, the gum is scored into a pattern of

rectangles, seasoned, and broken into sticks. The gum is now ready to be

packaged and shipped to retail outlets.

Of chewing gum until it is properly rubbery and smooth. Large chunks are then

chopped off the mass, to be flattened by rollers until they reach the proper

thickness of nearly .17 inches (about .43 cm). During this process, the sheet of

chewing gum is dusted with powdered sugar to prepare it for cutting.

Cutting and seasoning the gum 6 A cutting machine first scores the sheet in a pattern of rectangles, each 1.3

inches (3.3 centimeters) long and .449 of an inch (1.14 centimeters) wide. The

sheet is then put aside at the proper temperature and humidity to "season."

Quality Control:

Perhaps because chewing gum has always had a bad reputation as an unsanitary and crass

junk food, but more likely because it is intended for human consumption, chewing gum

factories have for decades been known for immaculate conditions.

Standards for raw materials are equally high. If natural rubber such as chicle is used, it

must pass several tests for cleanliness and texture. Before shipment, chicle is inspected

for rocks, dirt, and other obvious impurities. If it is too milky, dry, or dirty, it is rejected.

Chewing gum is manufactured completely untouched by human hands, its entire

production process taking place in clean, air-conditioned facilities. Each ingredient is

49

tested for purity before being used, and only the highest quality ingredients are accepted.

Every large company has a research laboratory on its premises, thereby simplifying the

standard procedure of inspecting and testing ingredients at every stage of the

manufacturing process. The research and development department is also responsible for

investigating new ways to produce and package gum, and for developing new products.

A successful piece of gum must be chewy and fresh, and bubble gum in particular must

be both resilient and soft. With all types of gum, freshness and texture depend upon

moistness. Gum must also contain the right amount of flavor oil. While too much solvent

will make a gum sticky and hard to cut, it must contain enough flavors to mask the taste

of the gum base and to last for a reasonably long time. For these reasons, the flavor oils

used in gum are highly concentrated. A long shelf-life is also desirable, and every pack of

gum is dated. After that date, the manufacturer asks that the gum be disposed of. To

ensure that merchants do this, one manufacturer will replace unsold, out-of-date gum for

free.

Long Lasting Gum Idea:

The most promising idea for long-lasting gum entails coating each stick with a polymer

film that releases flavor molecules slowly; studies suggest that the flavor of such gum can

last more than ten hours

Future outlook of the company

When we will launch this bubble gum in the market, it will capture the whole bubble gum market and will increase the shares of the Mayfair company. Because rig now there will be no alternative of this chewing gum which flavor will last log about 10 hours. Right now the average duration o bubble gum flavor is about 5 minutes so this unique chewing gum will boost the market shares of the company.

50

New Marketing Strategy

51

Product:

Brand Name:

Mayfair Super Vida

The Flavor of this bubble gum can last more than ten hours. It meets the customer

requirements and expectations because this chewing gum imbued with a patented

compound that helps to repair tooth enamel. The compound, amorphous calcium

phosphate, crystallizes when chewed; triggering the natural demineralization process by

which the body rebuilds damaged teeth. Under ideal circumstances, the body generates

enough amorphous calcium phosphate to repair teeth organically, but many people eat

more sugar than their bodies can fight. This experimental gum would help to protect

these people against tooth decay.

According to the quality policy of the company, this chewing gum made up of high

quality ingredients to last longer with the flavor and retain elasticity.

Each chewing gum will be available in small packets. And also will be available in

bottles in which there will be so many bubble gums for family usage.

It will continuously in quality improvement process.

Price:

The price of each chewing gum will be 2 Rs.

Suggested Retail Price:

The suggested retail price for this chewing gum will be 1.25 Rs. each for a limited time.

Volume Discounts and wholesale Pricing:

52

We will offer volume discounts and whole sale prices on the family size bottles of this

chewing gum, there will be 60 chewing gums in the family size bottle and its actual price

will be 120 Rs. But we will offer it in 100 Rs.

Seasonal Pricing:

Prices will remain the same in all the seasons.

Place:

The Pakistani market is largely trade driven with more than 60% of the sales coming

from the 400 wholesale markets spread all across Pakistan. This trend is now giving way

to more sophisticated distribution mechanisms. Mayfair has a distribution network of 375

distributors covering the length & breadth of the country.

The company has structured its sales organization into three regions to ensure

availability of its products throughout Pakistan, a country of 140 million plus population.

The sales team is lead by a National Sales Manager, managing a Regional Managers,

Zonal Managers and dynamic sales officers. In all the sales & distribution network is

energized by a team of 100 sales executives.

This chewing gum will be available in all the distribution networks of the main cities of

Pakistan in start and after some duration it will be available in all of the Mayfair

distribution networks

Promotion:

53

The most important element of marketing your chewing gum is its availability in all the

shops of all locations. We will open the stalls of this bubble gum in each and every

school and college of the main cities of the Pakistan to promote it.

After its availability in all the areas, now our promotional strategy will only be to provide

quality chewing gums for the satisfaction of our customers.

We will advertise our chewing gum and will target 8 years to 40 year people through our

advertisements and campaigns and will also use newspapers for the information about

this chewing gum.

Because of its uniqueness and benefits for the teethes, this product will lead all other

chewing gums because it will be available on all the areas of the country.

Positioning:

“The ultimate bubble”

54