Project Report on

K&Ns

Submitted to

Dr. Tahir Ali

(Chairman, Department of Commerce)

Submitted by

Tazeen Azeem

(M.Com, Final Year)

University of Karachi

March 7, 2014

Acknowledgement

First of all I am grateful to the blessings of Almighty ALLAH who gave me ability to complete

the project in an appropriate manner.I also gratefully acknowledge the immense help of our

respected and extremely encouraging course Instructor, Dr. Tahir Ali, who remained crucial in

the process of preparation of this report. I acknowledge his guidance, help and cooperation,

without his cooperation this project work would not have been possible. He made my concepts

clear about the project as well as about the course Project Management. I also thank the

K&Ns management to provide me the data of interest. I also thank the appreciation and

guidance of my parents who gave me encouragement whenever I faced any difficulty in the way

of academic life and particularly for the accomplishment of this project.

Executive Summary

K&Ns is one of a kind in Pakistan and has come forward with a new perspective about frozen food in our society. K&Ns has shown sensitivity to the Muslim requirements of halal food products and introduced its Del Line so that the people have no more doubts and are comfortable

consuming the skinless sausages, cold cuts and smoked meat.

The company implements the marketing strategy with immense skill and understanding about the

Pakistani society and is therefore successful amongst the masses that it targets. The four Ps of marketing are incorporated without a hitch and the products of Del Line are easy to use, reliable

and easily available with great taste and reasonable prices. It has to be kept in mind that Del Line

products are only aimed towards the social classes A+, A and B and so K&Ns is successful and quite popular.

Upon conducting a research it was identified that the brand name of K&Ns has become so strong that advertising on TV is not only the reason for the purchase of the products. It is all

dependent on the marketing strategies that were employed at the time when K&Ns penetrated the consumer food items market.

Introduction

In todays fast moving world the major issues related to society is the time. This is a factor which creates hurdles in decision making of consumers to adapt a product according to their needs.

Another factor which contributes towards social setup for behaving in more specific purchases is

the health of general public. According to a research conducted more people were found to be

cautious about contents and taste of the products they consume. They prefer easy to use and

quick to serve products in their meals.

These product are mainly focusing on the working women and the hostilities. The hostilities

require something that is ready to serve in minutes that is less time consuming but still full of

taste and nutritious as they miss the taste of homemade food and the working women cannot get

time to prepare meals, so these product provides them the solution to their problems. But

increasing prices are reducing its demand and shifting consumers to other brand.

Companys background

K&Ns is the founding pillar and beacon for Pakistan poultry industry. Building on years of poultry expertise, and a commitment to food-safety, K&Ns integrated all poultry production activities under one umbrella to ensure quality and food-safety by managing and controlling all

stages of production.

The year 1964, Pakistan a young independent nation forging ahead towards a dream: self

sufficiency in food production. Malnutrition remained a major problem and one out of four

children died attaining at the age of five. 80% of ailing children were affected with disease

caused by protein, vitamin and mineral deficiency. Poultry production, the quickest and least

expensive way of filling the protein gap was planned to overcome malnutrition. Backyard

poultry farming had to graduate to a more professional level.

January 1964, a young man, Khalil Sattar, still a college student, had the vision to foresee a need

to establish a poultry farm. His interest led him to start a small broiler farm of 1,000 chicks.

Little had he known this flock was to become the foundation stone of K&Ns. This was the simple, inspired and nationalistic beginning of K&Ns with a single-minded objective of providing better nutrition for Health and Happiness of the Nation.

Research Process By K&Ns

Research introduction Research comprises "creative work undertaken on a systematic basis in order to increase the

stock of knowledge, including knowledge of man, culture and society, and the use of this stock

of knowledge to devise new applications. However, the main reason for the research on K&Ns was to get the feedback from the targeted customers about the specific issue mentioned below.

Problem statement The problem which is faced by K&Ns currently is difficulty in capturing new target market and diversification of consumers.

Literature review Although little research has been done on the influence of K&Ns on the public perception of purchasing, researchers have investigated how products and their prices contribute to the general

publics behavior. In general the public perception of products is strongly influenced by prices.

Hypothesis Sales is decreasing due to competitors offerings at low price

Dependent variable: sales

Independent variables: low price by competitors

Competitors

1) Simply Sufi (chicken products only)

2) Menu (chicken & sea food)

3) Mon Salwa (chicken & sea food)

4) PK (chicken,beef & mutton products)

Methodology

Descriptive research Descriptive research is a type of research method that is used when one wants to get information

on the current status of a person or an object. It is used to describe what is in existence in respect

to conditions or variables that are found in a given situation.

In the light of above instructions, it resulted that the people respond in a very positive way to the

products of K&Ns. There is a very high market potential for the products of K&Ns. Through research it was found that pricing was an issue that needed to be considered.

Sample plan The sample plan population was divided into mutually exclusive groups such as students,

teachers, business oriented and job oriented people. It was convenience sample as well as

divided mutually exclusive groups were approached as convenient. We distributed 500

questionnaires among different age groups or segments and 20 among the retailers

(shopkeepers).

Research instrument Questionnaire was used as the research instrument as they were the easiest way to gather

required information. (See appendix for sample questionnaire)

List of aspects high price

consumer diversification

competitors

electricity problems

Data resources

Primary data:

1) customers

2) retailers

3) Relationship Sales Managers (RSM)

Secondary data:

contact@KandNs.com

domestic.sales@KandNs.com

http://www.kandns.com

Data Analysis

Frequency Distribution table (consumer questionnaire)

Frequency Distribution table (retailer questionnaire)

Q#. a b C d e Total

1 115 110 90 95 90 500

2 190 195 110 15 0 500

3 70 100 120 115 90 500

4 50 115 100 120 125 500

5 315 185 0 0 0 500

6 130 250 120 0 0 500

7 80 130 150 140 0 500

8 310 5 50 120 15 500

9 320 104 76 0 0 500

10 40 310 125 20 5 500

1620 1504 941 625 325 5000

Q#. a b C d e Total

1 0 4 5 2 9 20

2 0 0 10 7 3 20

3 0 8 6 5 1 20

4 1 3 9 7 0 20

5 0 2 3 4 11 20

6 3 15 2 0 0 20

7 0 1 2 6 12 20

8 14 6 0 0 0 20

9 13 6 1 0 0 20

10 2 16 2 0 0 20

33 61 40 31 27 200

Data analysis of consumer questionnaire

On the bases of prevailing situations 500 questionnaires were filled from the consumers which

very helpful for the verification of the hypothesis and the result is discussed below.

Q2: The prices of K&Ns are,

a) Very high

b) High

c) Average

d) Low

e) Very low

Explanation: According to the survey the prices of

K&Ns are very high and I need to b curtail.

Q7. The top most competitor of K&Ns is,

a) Simply Sufi

b) Menu

c) PK

d) Mon Salwa

Explanation: Survey results that the K&Ns is

challenged by PK, therefore it should work more

on its competitive advantage.

Q10. K&Ns should work more on their,

a) Quality and taste

b) Pricing strategy

c) Line extension

d) Packaging

e) Availability

Explanation: Prices should be curtail to compete

in the market.

The prices of K&N's are

very high

high

average

low

very low

Top most competitor of K&N's

Simply Sufi

Menu

PK

Mon Salwa

K&N's should work more on their

quality & taste

pricing strategyline extention

packaging

Data analysis of retailer questionnaire

20 questionnaires were filled by retailers to make the research more authentic. The

result of few questions is shown and discussed below,

Q1 The most selling frozen food products are of,

a) Sufi

b) Menu

c) PK

d) Mon Salwa

e) K&Ns

Explanation: K&Ns is the most selling brand.

Q6: The prices of K&Ns as comparable to other

competitors are,

a) Very high

b) High

c) Average

d) Low

e) Very low

Explanation: Due to high prices sales is a bit effected

although the target market is highly potential.

Q9: The demand for K&Ns may be effected by its,

a) Competitors

b) Prices

c) Quality

d) Availability

e) Packaging

Explanation: Demand is highly effected by the

increasing number of competitors.

The most selling frozen products are of,

Simply Sufi

Menu

PK

on Salwa

K&N's

The prices of K&N's comparable to

competitors are,

very high

high

average

low

The demand for K&Ns may be effected by its

Competitors

prices

quality

availability

packaging

Q10. K&Ns should work more on their,

a) Quality and taste

b) Pricing strategy

c) Line extension

d) Packaging

e) Availability

Eplanation: K&Ns should work o their pricing

strategy as it is highly effecting to capture new

market/prospects.

K&Ns should work more on their,

Quality and taste

pricing strategy

line extention

packaging

availability

Conclusion of the Research

We have got a positive feedback and good response by our targeted market segments. As now a

days time is money even ladies are working in offices so they are in search of products that are a

complete meals for their family and are time saving, with the increase in the business in the

schedules of people the trend to ready to serve meals is also increasing so A product of

K&Ns has a scope in market as K&Ns has the largest market share in ready to cook and ready

to serve products. However, prices are effecting its sales.

Recommendation

K&Ns should work on their pricing strategy due to which the demand is highly effected and

also follow the integrated growth by introducing Beef product line or other product lines to earn

more profit and achieve its targeted sales.

Appendix

A Secondary data

K&Ns Annual Report

Companys history

K&Ns, a founding pillar and beacon for Pakistans Poultry Industry started in 1964 with a

single minded objective of providing better nutrition for health and happiness of the nation.

Building on years of poultry expertise and commitment to food-safety, K&Ns integrated all

poultry production activities under one umbrella to bring yousafe and healthy chicken by

managing and controlling all stages of production.

Products

K&Ns markets layer and broiler hatching-eggs, layer and broiler, day-old chicks, poultry feed,

processed chicken and ready-to-cook & fully cookedfood.

I selected only the ready to cook category of K&Ns which include Nuggets, Croquettes,

Chicken Tempura, Burger Patties, Kofta, Combo wings, Fun nuggets, Hot Tenders, Chapli

Kabab, Harey Bharey Nuggets and Tender Pops.

Distribution

Products are stored at -21C to maintain freshness. Packed products are moved into K&Ns

sanitized refrigerated trucks for distribution to ensure uncompromising quality control.

K&Ns chicken products are available at K&Ns Chicken Stores and leading retailers and also

delivered to quality and food-safety conscious institutions such as hotels, restaurants, airlines,

clubs and international restaurant chains.

Market share

Market share of K&Ns is almost 70% (on average) in ready to cook food category. At Hyper

Star almost 80% people buy K&Ns products. At CSD almost 60% people buy K&Ns products

and at Macro almost 75% people buy this brand. This is the highest market share and at this time

it is the leading brand in this category.

Where the brand stands?

The brand is growing rapidly day by day due to the customer satisfaction and the product is

according to the customers requirement as well as they are targeting different segments of the

markets like children and the vegetarians.

Positive points of its product

From the customer view point K&Ns is providing healthy food. It is easy to cook especially it

facilitates the working women because they dont have much time to make all those things in

home. They are targeting the children as well through fun nuggets so women are using for their

children lunch. This brand provides the hygienic food to its customer that build trust in the

customer. Moreover the taste of K&Ns food is superior then others. These attributes are

increasing its market share and this brand is growing.

Competitors

Competitors of K&Ns are Menu and Mano salwa. Both of these brands couldnt make its brand

image as strong as K&Ns has. Secondly they are not providing that level of customer

satisfaction that K&Ns is providing.

Target market

The company is targeting different age groups as well as different income groups. Their prices

are normal so even a middle class person can afford it. They are targeting elite upper middle and

middle class. On the age basis, they are targeting children as well as the young people.

Conclusion

K&Ns is a largest selling brand in ready to cook food category. They are focusing more and

more on the fully cooked products for the ease of customers with the special focus on the

hygiene factor. It is the brand that provide value product to its customer. There market starts with

the customers and end with the customer. This is the main reason for their market share and

market growth.

Appendix

B Sample Questionnaires

Questionnaire(consumer)

We are the students of M.Com Department of Commerce University of Karachi. We are

conducting research on the K&Ns

If you kindly fill out this questionnaire. The information provided by you will be used for

academic purpose only.

Thank You.

Name: _____________________

Designation: _________________

Organization:________________

Q1: The products of K&Ns are,

a) Excellent

b) Satisfactory

c) Average

d) Unsatisfactory

e) Poor

Q2: The prices of K&Ns are,

f) Very high

g) High

h) Average

i) Low

j) Very low

Q3: The most purchased products of K&Ns are,

a) K&N's Processed Chicken

b) Ready-to- Cook Products c) Fully Cooked Products

d) K&N's Deline Products

e) STOK

Q4: Discounts offered by K&Ns are,

a) Very high

b) high

c) Average

d) Low

e) Very low

Q5: The description on packaging is,

a) Sufficient

b) Average

c) Unsufficient

Q6: K&Ns products are mostly used in,

a) Breakfast

b) Lunch

c) Dinner

Q7: The top most competitor of K&Ns is,

e) Simply Sufi

f) Menu

g) PK

h) Mon Salwa

Q8: Most advertisement is done by,

f) K&Ns

g) Simply Sufi

h) Menu

i) PK

j) Mon Salwa

Q9: The availabilty of K&Ns products is,

a) Easy

b) Average

c) Difficult

Q10: K&Ns should work more on their,

f) Quality and taste

g) Pricing strategy

h) Line extension

i) Packaging

j) Availability

Questionnaire (retailer)

We are the students of M.Com Department of Commerce University of Karachi. We are

conducting research on the K&Ns

If you kindly fill out this questionnaire. The information provided by you will be used for

academic purpose only.

Thank You.

Name: _____________________

Designation: _________________

Organization:________________

Q1: The most selling frozen food products are of,

k) Sufi

l) Menu

m) PK

n) Mon Salwa

o) K&Ns

Q2: K&Ns is sold because of its,

f) Price

g) Quantity

h) Quality & taste

i) Availability

j) Packaging

Q3: The most sold products of K&Ns are,

f) K&N's Processed Chicken

g) Ready-to- Cook Products h) Fully Cooked Products

i) K&N's Deline Products

j) STOK

Q4: The top most competitor of K&Ns is,

i) Sufi

j) Menu

k) PK

l) Mon Salwa

Q5: The most in-store promotional activity is done by,

a) Sufi

b) Menu

c) PK

d) Mon Salwa

e) K&Ns

Q6: The prices of K&Ns as comparable to other competitors are,

k) Very high

l) High

m) Average

n) Low

o) Very low

Q7: Discounts offered by K&Ns is,

f) Very good

g) good

h) Average

i) Low

j) Very low

Q8: Distribution channel of K&Ns is,

a) Efficient

b) Average

c) Inefficient

Q9: The demand for K&Ns may be effected by its,

f) Competitors

g) Prices

h) Quality

i) Availability

j) Packaging

Q10: K&Ns should work more on their,

k) Quality and taste

l) Pricing strategy

m) Line extension

n) Packaging

o) Availability