"Strategic Marketing Management": Report On Hilal Cup Kake
"Strategic Marketing Management": Report On Hilal Cup Kake
"Strategic Marketing Management": Report On Hilal Cup Kake
Report on
Submitted to:
Submitted by:
Muhmmad Furqan
Waqar Wajid
Masters in Business Administration Department
Title fly
Title page
Transmittal
Karachi.
If there are any questions or queries you have about the material presented in
this report, I will be extremely glad to appear before you.
Sincerely,
With the blessings of ALLAH the almighty, the report enclosed has reached its stage of final
completion. This report is a result of exhaustive and much enthusiastic work. We extend our
heartiest thanks to “Ma’am Ayesha Aman”, for conducting this course and making it
interesting and knowledgeable, without her efforts and co-operation the report could not have
been possible. We also thank for her confidence and trust she had on us, which cannot be
anyway under estimated.
We are also equally grateful to Our University for providing us the opportunities to pursue
our endeavor.
We hope readers of this report can complement the depth of the study and efforts put into it.
Table of Content
1. Synopsis
2. Company Introduction
Mission
Vision
Core Value
3. Positioning
1. Positioning Statement
2. Positioning Strategy
3. Slogan
4. Product
Product Attribute
Quality
Design
5. Price
Method
Objective
Price Strategy
6. Promotion
Awareness
Advertising
7. Environment
1. Market definition
2. Market size
3. Competitor
Direct Competitor
In direct Competitor
8. Positioning & Product
1. Segmentation
Geographical
Physiographical
Demographical
Behavioral
Micro Marketing
Target Market
Kids
youngsters
9. Consumer Analysis
Nature of buying
Participant
Physiographic
Demographic
Brand Equity
BCG Analysis
10. SWOT Analysis
1. Our Own SWOT
2. Distribution channels
“Cup Kake” has several powerful strengths on which to build, and one of it
is brand awareness and brand image in the market.
They also face the threat of ever –higher Competition from their biggest
competitors, as well as downsizing pressure and chance of price war.
Hilal targets families of upper middle and higher classes, small and large
family size.
The companies analyze the market situation where DAWN is the major
indirect competitor.
The company establishes the market strategy choosing the target market
approximately 10 million people in number after carrying out a market
survey they found out that their existence a need of this “Cup Kake” , 60%
people were positively reply about the constant need for such product.
Pakistan is very potential market (basically we are targeting urban
population, the growth rate of urban population is 0.75%) so we can say
that the environment for this product is beneficial.
Hilal has a B2C distribution channel which includes the company itself, the
wholesalers and retailers.
It basically uses a pull strategy for Promotion of its brands, focuses more
on communication and is the only consumer goods company that gives the
lowest markups to retailers.
Company History and Background:
Hilal has been synonymous with excellent quality confectionery products for
the past fifty years. Over the last half century, the company has diversified its
product range, with a variety of popular new confectioneries for consumers all
over Pakistan to enjoy. Hilal Confectionery is a market pioneer and leader
with their classic range of candies and bubble gums - now newer, improved,
and innovative products like chocolates, wafers and powdered drinks have
also had a substantial impact on the marketplace. The extensive Hilal
portfolio includes, but is not limited to, such recognizable products such as
Amras Candy, Chooran Chatni, Khopra ,Pan Pasand and Ding Dong at one
end, to Milker Bar Bar, Line Up, and Sun Sip at the other end.
Hilal's latest product, 'Kake' is part of the company's new baking division,
which has enabled the company to gain market share within the snack food
industry.
Hilal has developed variety of products, which appeal to almost all market
segments with basic objective to capture the all-demographic segments. Hilal
got the title of market leader in local confectionary items.
Mission
To achieve customer satisfaction in response to changing market trends
To innovate within existing products and technologies according to
market trends
To maintain its high market share and market leadership
To be accessible to all segments in the market
To constantly maintain its high quality standards
Vision
Hilal, along with its ancillary concerns, currently holds the title of market
leader in confectionery, and it envisions to not only maintain this position, but
also to replicate this success in new product categories also. Being number
one means having to anticipate the customers’ needs and desires. No one
does this well than Hilal.
Core Values:
Sister concerns of Hilal, involved in manufacturing of confectionery
and powdered drinks, place a great emphasis on quality control by
using modernized plants that are operated by qualified and trained
staff. Automization is encouraged, and progressive, custom software
has been introduced for nearly all the departments. Innovation
through latest technology utilization and optimum utilization of
qualified staff members is the basic tenet on which Hilal thrives.
POSITIONING
Positioning Statement:
Positioning involves what values offers to the segments and also designing
the product image that will occupy a distinctive place in the mind of the
consumer of the target market. Hilal Company has decided to create its own
unique image and then strong position in the consumer’s mind. Hilal
positioned its product in the mind of the consumer as:
SLOGAN:
“THE “CUPKAKE” THAT EATS LIKE A MEAL”
POSITION STRATEGY:
They are offering innovative features and flavors in the cupcakes. This brand
meets people’s expectation as having light treat in
evening. Hilal has placed the bill boards on roads,
bus stops, actively using of page on social websites
and playing attractive ads on TV channels.
MARKET STRATEGY
PRODUCT STRATEGY
Product Attributes:
Quality
Hilal offering the quality product to their customer with different benefits
in the cupcake and flavors to fulfill need and wants. Hilal believe that the
customer should come back not product. The company goal is that,
make the product free of defect that make customer reliable for the
product. That’s why Hilal made valuable product for customer point of
view to satisfy customer and build long term relationship.
Design
They are offering unique cupcake by introducing more flavors and
different packaging which no one in our competitor is thinking. They
know their product form is unique and it will make their customer life
tastier.
Their product, “Cup Kake” is made from high quality vegetable oils, so it
is important source of essential fats and vitamins A, calcium and iron.
Key facts
Hilal’s product helps you to live well and enjoy your life!
More than 90 percent of medical specialists dealing with children say
that children need nutrients in their diet for healthy growth and
development.
Vitamin A, calcium and iron are building blocks for the body. Cupcake is
a good source of it.
Nearly nine out of every ten primary school teachers interviewed for a
recent study say that bad eating habits affects not only healthy growth
and development, but also performance at school.
PRICE
Pricing objective:
Pricing is very difficult because the various companies have related product,
cost and face different degree of competition. Hilal wants to maximize the
market share by using skimming price.
Pricing method:
Psychological Pricing:
The second price adjustment strategy they are using is discount pricing.
They give discounts to their customers if they purchase their given
packages.
PROMOTION STRATEGY
Promotional Goals
Cupcake contains essential oils, which are important for the growth and
development of children. Why do we call these essential fats? Since our body
cannot produce itself. We must get them through diet. Like vitamins. They are
found in oily fish, nuts and avocados. By using of cupcakes is an easy and
tasty way to get them inside. As part of a balanced diet and healthy lifestyle,
using cupcakes plays an important contribution to the amount of essential fats
needed for the growth and development of children.
Cupcake is a delicious and healthy choice for you and your family!
Advertising
They will use Informational appeal or rational appeal. They want their
customers to know about product attributes or features of our existing
product. It is just point of difference which makes this product unique. They
want to highlight these differences as much as possible.
Especially when targeting general public, so they are also going to prepare
their sales team to give awareness and convince people to buy our product.
Environment:
Market definition
The usage of bakery product in Pakistan is very high and Pakistan is one of
the potential markets and expected to earn revenue $334 million.
Market Size:
Hilal is a well-known company its market size is very big as Pakistan’s market
is very huge so they have got their product recognition and product
awareness.
Competitors:
Direct Competitors
There is no direct competitor exist for Hilal kake to compete it because its one
of the innovative product and give them competitive edge.
In Direct Competitor and market share
Dawn’s
Cup
Cake
Information:
In-direct Competitor strength and weakness
Strength
Strong Market Position
Prominent Brand Name Recognition
Launched several differentiated products
Huge resources
Weakness
Huge range of product
Positioning & Product
SEGMENTATION:
Divide the market into different group of buyers who share similar sets of
needs and wants.
GEOGRAPHIC SEGMENTATION:
Geographic Segmentation
World region Asia
Country Pakistan
Cities Karachi
Density Urban
DEMOGRAPHIC SEGMENTATION:
Demographic Segmentation
Age 05 – 30
Gender Kids male and female
Occupation Any
PSYCHOGRAPHIC SEGMENTATION:
Psychographic segmentation:
Social Class Lower, Middle class to higher class
Life Style Believers, achievers, fulfilled, new
generation
Social trend Health conscious
BEHAVIORAL SEGMENTATION:
Behavioral Segmentation:
MICRO MARKETING:
Tailor their offers and program to meet the need and wants of specific
individuals and local customer group. Hilal is using micro marketing approach
to target its customers.
TARGET MARKET:
Hilal has divided its target market into two categories primary consumer
Kids enjoy their evening with Hilal “CupKaKe”. As our product is the main
source of essential vitamins and good fats which is fundamental for the kids
which help them in growing healthy kid.
Our other target market will be youngsters and students who are taste lovers
because they are also the major stakeholders in general public. They also
enjoy being kid in their elder age as they missed their childhood very much.
Keeping in mind these stakeholders are also our potential consumers as they
will buy our product for themselves and for their younger family member or
kids.
Consumer Analysis:
Nature of the Buying Decision:
Participants
It’s not necessary that the buyer is the actual user of the product. Sometimes
the buyer buys it for the consumption of the user who is dependent on the
buyer. Buyers and users are equal participants of the product. Decision to buy
is not only made by the buyer, that decision can be influenced by the user.
Demographics:
Pakistan is the country where usage of sweet is increasing day by day. The
demographics include ages, location, gender, race, occupation, income etc.
The potential market of “CupKaKe” is kids and Cake lovers. Aged 5 to 30 and
minimum income should be 10000 and above, it targets kids, male and
female both especially to Cake lovers.
Psychographics:
“CupKaKe” is designed for lower middle class, middle class, lower upper
class and higher class. The product is used by the people who have
experiencing, thinking nature and lifestyle. Whereas people having gregarious
and ambitious personality.
Brand equity:
Company wants to build brand equity about the product that is a “full of
essential nutrients” and all these vital nutrients will help in growing great
and healthy kids. As this new and young generation which is our hope and
source of strong Pakistan, so we should make our children strong by this
product.
BCG Analysis:
According to BCG analysis our product is a Question mark (?). As Hilal has
introduced their Cakes in earlier time but soon they came to know that their
market is going towards decline because their Cakes were not getting
recognition and they were facing loss so they stopped the production of cakes
but now again they have started launching Cakes with innovative and creative
positioning strategies.
THE BCG
MATRIX
HIGH
MARKET
GROWTH
LOW
Strengths:
Hilal has Strong company image so ”Cup Kake” has an advantage in this
regard.
1. Hilal has got Strong brand portfolio
2. Quantity & variety is also one of the attractive aspect of Hilal so in the
case of ”CUP KAKE” , this aspect comes into existence.
3. “Cup Kake” posses’ delicious & attractive Taste.
4. Solid base of the company
5. Innovative aspects, which is again fulfilled by repositioning of ”CUP
KAKE” .
6. Help people getting more out of life
Weaknesses
1. High prices of products
2. Substitutes products (muffins)
3. Policy of spending for the social responsibility
4. Reduced spending for research & development
Opportunities
1. Changing life style of people
2. New markets
3. Increase the volume of production
4. Low income consumers
5. Help in improving people diet & daily lives
Threats
1. Competitors (Dawn Cupcakes)
2. Political effects
3. Legislative effect
4. Environmental effect
5. Obstacle faced Change in life style of people
6. Chance for price war
7. Increase in production &labor cost
Our Own “SWOT” with Respect To Promotion,
Product, Price, Placement and Brand.
Strengths
High demand for fresh cakes during Ramadan, Eid and winter seasons.
Cupkake consumption is low but on a regular basis and the longer
shelf-life of the product allows for an extensive distribution strategy,
unlike fresh cakes.
CupKake allows some room for product differentiation from competitors
on quality, size and taste.
CupKake has packaged cake production facilities.
Weaknesses:
CupKake production is on a small-scale basis with very limited
production which makes it profit shrink.
CapKake is at its initial level of introduction and has been bought not as
up to the marks so less consumption leaves machinery operating below
capacity for part of it optimum production this is one of the weakness for
CapKake as well.
Opportunities
Improvement of households’ economic situation should foster an
increased consumption of both CupKake.
Hilal CupKake may have the flavor of Raspberry & Blueberry as well
like blueberry muffins.
Threats
If Pakistan has to import more it could results heavy dependence on
imported flour and sugar means that tariffs or exchange rate fluctuations
can increase the costs of raw materials and will directly hit the cost of
CupKake.
Hilal is not actively using web pages on social websites questionnaire for
cupcakes as our contact method. This is the best way to reach the people.
They are not much expensive, simple and easily answerable and there is the
interaction with the party and chances of getting feedbacks.
Leader
Challenger
Follower
Niche
There are various channels of marketing which can be used to deliver the
product from the producer to consumer. In case of our product, the indirect
channels are more convenient. In case our product demand increases with
the time we can go for intermediaries’ options as that increment might create
difficulty for us to distribute the product efficiently.
Distribution Channel:
Hilal has a B2C distribution channel which includes the company will deal with
the wholesalers, retailers, and the customers. It basically uses a pull strategy
for the promotion of its brands, focuses more on communication and is the
only consumer goods company that gives the lowest markups to retailers.
They are using their general distributors. There are two channels are used.
PRODUCER PRODUCER
WHOLESALER
RETAILER RETAILER
CONSUMER CONSUMER
Distribution overview:
Essence of distribution lies in building a full proof value chain network that
delivers the product from where it is manufactured to the final consumers.
Some companies like to distribute their products through different wholesalers
and retailers. But Hilal will start delivering its product with it’s their general
distributors or the same distributors which deliver their whole range of
products.
Sales Objectives
Now it is very important to manage sales force team. These steps are
required to manage sales force teams.
Training
After selecting like-minded sales people we have training session for our
sales representatives. We tell them about company and products.
Supervising
When our sales represents are ready to go in the field we give them direction.
We give our support where they want. We pay close attention on their
performance.
Motivating
Sales representatives need to be motivated. They are given difficult task but
attainable. To attain those individual goals we motivate them in different
ways. Compensation is the major source. Appreciation and recognition also
help them to motivate.
Evaluating
Evaluation comes at last. We evaluate the result. It is difference what was set
and what has been achieved. After evaluating we have clear picture about
every employee. It helps us to pay special attention to that sales
representative who is not effective.
Sales Promotion
Contests: It is included in our action plan; we will add customer sales
promotion such as contest in which customers post videos on our website,
showing how they tell recipes in which “CupKaKe” is used in a creative and
unusual ways.
Trade shows, exhibits: There are hundreds of trade shows; exhibits etc. are
held at expo Karachi. We are looking forward to take part in FMCG products
exhibits. These kinds of trade shows help to attract more customers.
Direct Marketing
To reach customers without using any channel is named as direct marketing.
It does not only help you to reduce you marketing cost but it also helps you to
make good relation with your customers. We will use following tools as a
direct marketing.
Research Plan
Data Source:
Hilal is using primary data source to collect the data. Because it introduced an
innovative product and its main function is to satisfy consumer needs by their
taste. Research has been carried out before in this regard that’s why Hilal is
using primary data source.
Research Approach:
SURVEY APPROACH:
Hilal is using survey research to collect the data. Because surveys are the
best for descriptive research. By using survey research we want to learn
about people knowledge, belief, attitude, preference about the product.
Research Instrument:
Questionnaires:
3) What comes in your mind when you hear the name of Hilal - “Cup Kake”
?
______________________________________________________________
__
5) Have you ever experience any issue with Hilal – “Cup Kake”
a- Yes (If yes, then what) ________________ (0% no one goes for
this)
1. Sampling Units:
Hilal is surveying the kids, students and youth for their “CupKaKe”.
2. Sample Size:
Large sample size gives more reliable result but it is not very easy to
take everyone’s input so Hilal has selected kids, students and youth
belongs to different income level. Sample size was 20.
3. Sampling Procedure:
References: http://www.hilalcandy.com/introduction.html