SUBMISSION: JULY, 24TH, 2019

COURSE: MARKETING MANAGEMENT

INSTRUCTOR: MA’AM SIDRA KHALID

GROUP MEMBERS:

Sno NAME ID

1. FARZANA KASHAB 9750

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 TABLE OF CONTENTS:

 INTRODUCTION…………………………………………………………….3

 PORTFOLIO………………………………………………………………….3

 ENVIRONMENTAL ANALYSIS……………………………………………4

 5 PORTER’S MOEL…………………………………………………………6

 SWOT ANALYSIS…………………………………………………………..7

 BCG MATRIX………………………………………………………………..8

 7PCS…………………………………………………………………………9

 REASONS FOR DECLINING………………………………………………9

 REPOSITIONING THE FLOP PRODUCT…………………………………12

 CONCLUSION ………………………………………………………………14

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 “50-50 BISCUIT”

INTRODUCTION

Incorporated in 1984, the success story of LU in Pakistan began with the initiative of Hassan Ali Khan
(the founder of Continental Biscuits). Its operation started in September 1986 with an initial strength of
200 employees. It’s a joined venture with General biscuits, the global manufacturer of the LU range. The
company at present has an outstanding portfolio, under its power brands of TUC, Prince, Tiger and Candi.
They have 30% market share and have over 180 employees in its head office located at Zone D BLOCK 7
Clifton, Karachi.

PORTFOLIO

Their portfolio are consisted their several brands that helped CBL to reach their desired position. These
are list down below

 Tuc
 Oreo
 Prince
 Zeera plus
 Wheatable

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  Gala
 Candi
 Tiger
 Milco lu
 Bakery range
o Bistiks
o Nan khatai
o Coconut
o Butter

VISION

LU will become Pakistan’s most preferred biscuit company by developing powerful consumer loved local
and global brands maintaining world class manufacturing and quality standards having superior quality
and motivated employees and maximizing shareholder returns.

MISSION

To be a market leader in Pakistan biscuit industry in the next 5 years, ensuring every second biscuit
consumed is proudly made by LU.

GOALS

Short term goal is to keep on advertising and maintain communication with customers to take loyalty in
return

Long term goal is to keep changing time to time and to run fast with the diversified competitors list.

STRATEGY

CBL's strategy is to be a leader in the biscuit business driving long-term sustainability and delivering
sustainable performance for the company, environment and the community. This includes delivering
consistently on our promise to consumers, serving our customers, developing and engaging actively with
our employees, delivering superior financial results to our shareholders and minimizing our impact on the
environment and interacting constructively with the communities in in which we operate.

ENVIRONMENTAL ANALYSIS

For having the environmental analysis linked to marketing management, We have two types of
environment

1. Microenvironment

2. Macro environment

MICROENVIRONMENT

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The environment directly affects the organization The action that creates ability and plays vital role in
serving its customers

a. The Company

The CBL consist of its Board of Directors and functional managers. Marketing main decisions are taken
by Top level management. The all new strategies for spending money on establishment and expansion of
product, flavor, and amount are only decided by top level managers as well as skillful employees of CBL.

b. Suppliers

They take raw materials of wheat, flour, oil, milk as their main components of biscuit making. They treat
suppliers as their partners because they are expanding their time and effort. They advise all marketers to
check out their availability and pricing but they themselves failed in the part of 50/50 biscuits checking.
CBL believes in value delivery system.

c. Intermediaries

The intermediaries include ‘resellers’ who hold their products called as wholesaler and retailer , the other
is ‘Physical Distribution Firm’ who helped the goods to reach their destination and activities of storing in
warehouses by transportation.

d. Customers

Although having tough competition in market still they have large number of customers, CBL influenced
by cultural, psychological and social factors. The amount of purchasing may vary from customer to
customer.

e. Competitors

To accomplish their desired goals, CBL take care by creating values for their customers, put extra efforts
for more awareness, high market share, knowing customers mind and their heart than their competitors.
Most important thing is to differentiating.

f. Publics

The public that involve CBL are not always their customers or consumers, but they are the tools that have
direct impact on the company. The public includes Government, Financial, General, Internal, Local,
Media, and Citizen etc.

MACRO ENVIRONMENT

The action that affects the organization by outside forces and it is beyond the control of any company.
This environment deals with performance, strategies and affects.

a. Demographic Environment

The environment that is suitable for market and marketers. The creation of their biscuits by searching the
population of country.

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b. Economic Environment

The economic environment consists of analysis of financial earning by consumer purchasing powers and
then spending pattern across their targets.

c. Natural Environment

The natural resources needed for the production of their items. They effect in demand of consumers
seasonally. Ecological factors have direct impact on it.

d. Technological Environment

This is the most dramatic and updated version force for shaping the destiny of any company. LU never
compromised its technological backwardness. They always have their feet with today’s era of developed
innovation because of their high research techniques.

e. Political Environment

Economic system and policies that are affecting the companies and its competitors like price ceiling and
price shortage. LU pays GST (General Sales Tax) to the Government by its high earning amount.

f. Cultural Environment

They believe that cultural environment can make the most efficient and effective earning so they do
advertisement. As they are famous in Pakistan, 50 50 shown ads as cultural focused and adding their own
celebrity not internationally any sales done by them.

5 PORTER’S MODEL

The model clearly defines its complete research on the market by these five criteria.

1) BARGANING POWER OF SUPPLIER: (Low)

2) BARGANING POWER OF BUYER: (Medium)

3) RIVALRY: (Low)

4) NEW ENTRANCE: (Large)

5) SUBSTITUTE: (Large)

SEGMENTATION

DEMOGRAPHIC

50-50 biscuits are made for those who are above 12 years age and for the customers who want quality
biscuit in low price.

GEOGRAPHIC

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From all the provinces of the country that is Metropolitan, small cities and towns.

BEHAVERIOL

Segment the market on the basis of product quality and its taste because people like quality biscuit.

CRITERIA FOR SEGMENTATION

ACCESSIBLE

Segment is easily accessible to serve effectively.

SUSTAINABLE

Segment is large enough to generate profit and increase market share of the company. The price
increment is too slow that it will never demotivate its middle class customers.

TARGETING

LU using market targeting because of the lower income of the people who can’t afford high price biscuits.
They for 50/50 only targeting mature people as clearly shown by ads and promotion

POSITIONING

To create a positive and impressive image by any kind of activity like by sales, by marketing, by
advertisement etc.

POINT OF DIFFERENCE

They created a crackers form biscuits for the first time in the market. This was only in imported biscuits
but LU introduced it with having two entirely different entities that is sweet and salty.

SWOT ANALYSIS

STRENGTH

It’s a high quality biscuit. Pricing is low and the ingredients used in the biscuit are halal and enriched with
dairy products. The brand name of LU is very strong and already has awareness in the market. Excessive
consumers like their products for daily usage in breakfast or high tea.

WEAKNESS

Packaging isn’t good and the ads aren’t seeking the attention of the customers. Export of product is also
very less. There is a large number of competitors in market that may decrease LU’s market share.

OPPORTUNITY

They have the opportunity to shape the dairy industry. They can also take hint from many biscuits
manufacturer. They could directly link with Britannia 50 50 who is still in market and having great impact
by introducing several flavors ‘Maska Chaska’ etc.

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 THREAT

The number of competitors is high so the competition is tough in the market. Before they introduce 50 50,
there were already ‘Butter Puff’ and ‘Saltish’ by peak freans that consumed by the same target audience.

BCG MATRIX:

MARKET SHARE RATE

HIGH

MARKET
GROWTH STARS QUESTION MARKS
RATE

CASH COWS
DOGS
LOW

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7PCS

PRODUCT:-

50-50 biscuit is a unique product of LU that offers an ultimate blend of two separate entities; it’s sweet
and salty.

PRICE

They are charging low price to be in the market for gaining market share.

Half role= PKR 15

Ticky pack= PKR 5

PLACE

It’s placed through whole sellers, retailers. Every small and large areas of Pakistan.

PROMOTION

LU was promoting 50-50 biscuit through ATL (Advertising on TV, Newspaper, and Banners). 2 ads were
made for the purpose of promotion featuring Saba Qamar in 2013. The other ad was made in 2014 but
they both failed to capture the audience attention.

PEOPLE

There are over 180 employees working in the head office of LU located at Clifton, Karachi. They do take
care of their employees and shared all necessary stuffs to them.

PROCESS

Marketing derives business strategy by leading product innovation along with creative aspects.

PERFORMANCE

They are establishing new trends by leading not just brand communications but also brand development
with highly competitive and fast paced industry.

REASONS FOR DECLINING

There are many reasons for the declining of 50-50 biscuit.

Packaging

Its quality was good but the packaging wasn’t up to the mark. The color usage of green and red are
entirely miss match with silver color. The color combination was very bad.

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Flop Advertisement

Ads were weak and were not eye-catching. Positioning was also weak. Their ad that we see was on partial
decision and answering based. The other ad in which Saba qamar was only doing ramp walk and
continually advertising her Attire and looks and expressions. No public attention for biscuits was there.

Consistency

They didn’t change the packaging to remind customer about their product that they are in the market.
They never gave offer and value to this product relation. They only spent money on TUC, zeera
commercial etc.

No Forwarding Supply

They also didn’t give trade offers to retailers and whole sellers to increase market share. They did not
even bother to check their suppliers to ask about their 50/50 purchasing power and impact.

Role of Peak Freans by (EBM)

As the time pass out, there were increasing different brands of biscuits used to present in the market. Peak
Freans has the biggest role in the lower marketing of LU by giving their extra efforts.

Creative Advertisement and Jingles

In creative advertisement and introducing jingles Peak freans became the pioneer of positioning.

Cultural Branding

It is the most important tool for developing business in Pakistan and Peak freans done this very well.

Direct competitor of 50 / 50

They also introduced salty sweety biscuits in different packet of delicious flavor biscuits like “Butter
Puff”, “Marie”, “Saltish”. They positioned that salty and sweety must be separate to each other as they are
both unique flavors.

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Loads of Supplying

Their supplying is so much fast and greater quantity in market that it makes feel people LU 50 50 is
absent in the market.

Market Offering

They only offered their brand in middle class people not the upper class of the society. As their
availability in big retailer store was not so the buyers never saw its presence in the stores.

Lack of Price Setting

The price was although very low so it does not mean that every one darely buy it but it created negative
image on the minds of customer that the less the price the cheap product is.

Competitors within the LU by CBL

The other brands like Rupali, Britannia and Peak Freans are not only the reason behind declining of
50/50, but the biscuits have its competitors from their parent brand like TUC, Wheatable, Zeera plus etc.

Ill Focused Product of LU

LU never sacrifice its brand equity by facing peak freans but it always fight by giving its one by one
creative advertisement to compete in the market. They were well focused of their other biscuits like TUC,
Candy, Bakery, and Prince. There were Ill focused in the marketing of 50/50 biscuits.

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REPOSITIONING OF 50/50 BISCUIT

NEW ADVERTISEMENT

The new advertisement fully based on emotional attachment. The consumers of 50/50 has forgotten it
already but from our survey various elders and aged people gave us positive feedback so we choose it to
reintroduce by having a aged ‘judge age’ character who is served by 50/50 and tea. Then he started
memorizing his old teen age days when his friend offering him the same biscuits. Introducing one unique
line i.e. ‘ Poorani Yadon ko Karay Taaza 50/50 kay Sath’

MORE PROMTION ACTIVITIES

We found that promoting the product is very important for having customer equity . CBL has gained
equity from different portfolios but not from 50/50. So we decided to do more communication and sales
for promoting it in social media and newspapers that it came back with the revolutionizing package.

NEW WRAPPER

The decision for making new wrapper was very confusing as when we were selecting different colors it
was similar to Britannia 50/50 and its various flavors. Most of the colors were taken by them. We finalize
then our wrapper with Pink color representing for kids of teen ager and Brown color targeting aged
people separate by thunder that represent revolution as we are doing with it. And we add the name with
‘REBORN’ to show it rebuilt by us.

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NEW PRICE

The price will be not low as it was before. The rising prices era may take so much cost for CBL to
reposition it and changing it quantity and quality. The Half roll price will be 20 PKR and Ticky pack price
will be 10 PKR.

INCREASED SUPPLIERS AND REMOVED ABSENCE

When 50/50 flopped one of the main reason was its non-availability . We will increase our suppliers at
any rate to remove its absence. We are going to make it eye catching product by new enthusiastic wrapper
and name called ‘reborn’

TASTE PREFERNCES

According to the survey we came to the results that the taste was delicious and we do not need to change
in any quality of it. We asked them ‘What happens when we mix two completely opposite flavors
together in one joint biscuit?’ They replied it gives the lip smacking and ironic by sweet and salty flavor.

STRUCTURED MARKETING

1. POINTS OF DIFFERENCES

We do not introduced masca flavor as Britannia did it before. The color is totally changed so we are saved
from alrights copy registered. The other biscuits ere whether sweet like Oreo, or salty like Tuck but 50/50
is having both entities. The ad is entirely different as they always shown that a firm is having in a
condition that he needs to select both partially called 50/50 but our ad is having memories, feelings and
emotions and tea time. No cream or mayo introducing only repositioning on the minds of customers by
good commercial ads and promotion activities.

2. POINTS OF PARITY

The name is similar to the Indian brand 50/50. Taking the biscuits with addition of tea. Available as much
as other biscuits like TUC, Bakery. The same amount of biscuits like others as it is the standard quantity
people would prefer.

EXTRA OFFERS FOR VALUE CUSTOMERS

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We would like to introduce 20% extra in every pack of it after having its sales of one month so that the
offer may also catch customers. CBL never done this before, but having this flopping of wonderful
product they are choosing this offer strategy.

HEALTHY BISCUITS FOR EVERY GENERATION

This biscuit is suitable for every age firm. The taste is delicious. It does not have cream and extra flavors
that are dangerous for the teeth health. The diet conscious always prefer this lightest biscuits.

CONCLUSION

All these analysis, research making for the report will surely help CBL to reposition 50/50. It will rise
again if they start to put all these efforts that we are presented in our report.

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