MITCHELLS

INTERNATIONAL MARKETING

Submitted to: Professor Riaz Khan

Institute of Business Management

Submitted By: Abdur Rehman Saleemi Student ID: 2009-1-90-10198

Executive Summary

This report is about taking Mitchells product Jubilee and Golden Hearts to other countries. Believing in the fact there is a huge demand of chocolates and Mitchells having good technology and a strong base can actually explore the international segments to be more profitable. The report has been concluded after taking a lot of aspects into consideration. Anaylsis has been done to to justify the choice of products. The market targetted is European, Australian and North American.

Acknowledgement
15th April, 2013

Dear Readers, I would first like to thank the Almighty Allah for giving me the strength and endowing me with the privilege of completing my report on the subject of International Marketing For Mitchells Pakistan. I am also extremely thankful to my professor Mr. Riaz Khan for his immense guidance, constant support, encouragement, without which I wouldnt have been able to accomplish the task successfully.

Sincerely Abdur Rehman Saleemi

Letter Of Transmittal
Date: To: 15th April, 2013 Mr. Riaz Khan Professor for International Marketing Institute of Business Management, Karachi Subject: Submission of Term Report Here is the term report that you requested on the 14ththApril, 2013 on International Marketing. As per your advice, I have included the necessary details of the topic. I hope that you will appreciate my efforts. I am grateful for your guidance and supervision without which this assignment could have not been completed.

Sincerely Abdur Rehman Saleemi

Introduction About Company

Mitchells is the only major food company in Pakistan today with fully integrated operations having its own growing and processing facilities at one location. Modern high-volume industrial equipment, professional management and a trained workforce all combine to ensure that Mitchells continues its dominance as the innovator, market leader and trend setter. In this regard a major step was taken in 1998, when Mitchells became the first food company in Pakistan to achieve ISO 9001 accreditation, thus becoming more competitive on the international stage also. Countrywide sales are managed by fully computerized and inter-linked regional sales offices ensuring a smooth distribution system with nationwide coverage. Highly qualified executives, using modern management tools, handle marketing, commercial, financial and accounting functions from the Head Office in Lahore. Vision To be competitive in the growing market as the quality managed company Mission To be a leader in the market we serve by providing quality products to our consumers while learning from their feedback to set even higher standards. To be a company that continuously enhances its superior technological skills to remain internationally competitive in this day and age of increasing challenges. To be a company which optimally combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair return to its shareholders.

Selected Products
Golden Hearts An effective way to win the heart of that special person in your life! Smooth milky chocolate with raisins and rice crispies, Golden Hearts express your sentiments like no words can. Share it with that special person in your life and travel the exhilarating journey into someone's affections and win that golden heart! Jubilee Chocolate The best selling chocolate in Pakistan! Jubilee is an energizing chocolate bar with a centre of caramel and nougatine. It is now also available in smaller size as Jubilee Mini to meet the smaller pockets.

PRODUCT NAME Mitchells Jubilee Junior Mitchells Jubilee (Maxi) Mitchells Jubilee (Mini) Golden Hearts

CONTENTS 8gm 35gm 20gm 10gm

PRICE Rs.1 Rs.8 Rs.5 Rs.3

SWOT ANALYSIS
Strength Oldest company of Pakistan. ISO 9001 Award in 1998. International recognition. Own reputation in market. Own growing and processing facilities at one location. Pioneer in Pakistan for chocolate production. Single national company that has variety in flavors. Have more fruit content. Weakness Less support of Promotions. Hardly advertising on the Media. Contended with their brand name. Not serious in promoting its brands. Very less packaging variants. Dont have any short term and long-term decision-making plan. Decreasing growth rate and eventually losing market shares. Poor flexibility-Due to the sheer size of the company, it is increasingly hard to effect essential changes to the business. This means that the company can lose ready market due to its inability to make quick decisions necessary to capture the change.

Opportunities Have an opportunity to target untapped market segments internationally Increased Geographic growth- The Company has potential to tap into geographically strategic paces such as China and select countries in Africa such as Egypt and South Africa. Improved presence in the global market implies a significant potential for more business opportunities Research and Development- The company massive investment in training and adoption of relevant technology positions it in a strategic position for competing with other major world players. Creating new horizons for the food processing companies. Increase the depths of its existing products categories. The company may invest in new product categories. Threats Increased competition Aggressive Advertisement of Competitors Increasing Market Share of Competitors Lack of awareness about culture Cut-throat Competition- The constant change in technology raises up great competition as competitors adopts diverse strategies to remain in business. The continuous existence of the business requires smart strategies, which are not always timely. The unpredictability of environmental patterns in some potential foreign markets.

MARKETING MIX OF MITCHELLS

The marketing mix of the company consists on the four Ps . Now we look on each p in detail. PRODUCT DEVELOPMENT The success of Mitchells products, the taste that has been winning consumers hearts for generations, is the result of the companys ongoing investment in, and emphasis on, quality control reinforce by research and development. Both sections closely coordinate with the marketing and exports office in Lahore, where product concepts are initiated and passed on to the R & D section for formulation. Following are the stages that are involved in the product development in the company. Design and development planning Organizational and technical interfaces Design input Design output Design review Design verification Design validation Design changes

All these stages of product development are performed under the supervision of a product development penal. PRICING Different pricing strategies are used for different products at different time. Normally, the strategy makers use premium-pricing strategy.

The reasons of adopting this strategy are: Very good repute and image of the company Best high quality of the products. Mitchells target elite class of the total food market

The following analyses shows the facts regarding the pricing strategy of the company. Mitchells profit margin is equal to 6.5 % of the net income. Rafhan profit margin is equal to 2.5 % of the net income. National foods profit margin is equal to 3.5 % of the net income. EXPORT PRICING There are not fixed prices for the products of the company for export. It entirely depends upon exporter, exporters demand and the contract that company made with him. The pricing formula in case of exports is as under: Material variable cost + labor variable cost + Factory overhead + special packaging as per the customers requirement + U.S.P + Freight (if has to pay) + profit margin. Fixed cost is not included in the export price because the local market recovers it. The minimum profit margin in case of export, the company enjoy is 10%. Maximum profit margin in case of export, the company enjoy is 20%.

PROMOTION
Promotion is the essential part of marketing mix of any company. Promotion is given very much importance in the MITCHELLS Fruit Farms Limited. Sales promotion is of two types.

 Trade promotion Consumer promotion

TRADE PROMOTION
It includes the promotion activities that are related with the member of distribution manager. This is basically for the distributors and retailers for boosting up the companys sales. For example if one retailer purchase one dozen of any particular product, then one will be free of cost for him.

CONSUMER PROMOTION
Consumer promotion is related with the marketing activities that are related with the consumer. This is for the benefits of the consumers.

DISTRIBUTION The AM(CD) is responsible for managing the distribution system of the company. In this regard, the executives of marketing department visit the regional sales offices on regular bases for monitoring the distribution activities. Further, the executives of sales department make visits in their concerning territories for evaluating the performance of distributors. Mitchells fruit farm limited has a wide distribution network to cover the whole country. Mitchells has divided the whole country into three regions and there are about more than 270 distributors. AM(CD) can easily manage the export distribution and company can further find out about international distributors for effectiveness.

International Markets
Fact Sheet -16 of the top 20 consuming countries are European -in 2012 North Americans consumed 3 billion pounds of chocolate, which totalled $13.1 Billion in sales -in 2012 the sale of all other non-chocolate candy items combined was $7.6 Billion -chocolate is North America's favourite flavour: 52% of adults surveyed like chocolate best with vanilla and fruit flavoured coming a distant second (12%) -71% of North American chocolate eaters prefer MILK CHOCOLATE

Targetted Countries European Countries North America