PRESENTED TO: Mr.

Rashid Saeed

PRESENTED BY: Anum Zulfiqar

MB-09-01
Saimah Abdul Majeed
MB-09-13
Azhar Ayub
MB-09-37
M.Safdar
MB-09-35
Nasrullah
MB-09-40
Saima Saleem
MB-09-42

SUBJECT: MARKETING MANAGEMENT

April
25,
2010

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2
 THE EXORDIUM

Nothing is deserving worship Almighty Allah, the most

Merciful, Compassionate and Gracious. All praises for him
because he is the creator of this mysterious universe and
guides us with the Holy Prophet Mohammed
(Peace be upon him) and Holy Quran to explore it. We
supplicate that Allah grant us serenity to accept the things
we cannot change, courage to change
The things we can, and wisdom to know the difference.

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 ACKNOWLEDGMENT

Above all we are indebted to almighty Allah, lord of our life and of everything in the
universe and His HOLY PROPHET MUHAMMAD (peace be upon him) whose blessings
enabled us to perceive and pursuit higher ideas of life.

“THE PROFOUND EFFECT OF A TEACHER UPON THE STUDENTS CAN BE

DESCRIBED BY THE LIVES OF HIS STUDENTS”
(PRINYA NATALYA)
We deem it with an honor and privilege to record sense of gratitude to the respected
resource person Mr. RASHID SAEED for his constructive style of teaching and
maintaining very open and competitive atmosphere within the class.

We would like to thank our respected teacher Mr. Rashid Saeed for giving us the
opportunity to explore our potential and skills and made a Project Report on “Kolson
Food Industries (Pvt.) Ltd. Pakistan”. He has given us thorough knowledge and
provides deep and crystal clear understanding about “Marketing Management” because
of that we are able to prepare this report.

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 DEDICATION

Dedication is a devotion to whom we love, who our benefactors are, who pray for us and
who made us capable of doing all these under this head, there are three personalities,
which are our PARENTS, our TEACHERS & our FRIENDS. So we have devoted our
report to our beloved Parents, respectable Teachers and loving Friends.

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 EXECUTIVE SUMMARY

Ever Since its inception in 1942, as on today, Kolson enjoys the distinction of being one
of the Pioneer food manufacturing and processing industries in Pakistan. The name of Kolson is
synonymous with dynamic and innovative food products. Kolson is operating in secondary sector
and is producing no of nutritious food products like pasta: macroniess, noodles, cereals, biscuits,
chips snacks and cereals. As it is a self committed organization to produce its customer’s
exclusive quality products. Its head office is located in Karachi. The key objective of company is
to capture maximum market shares. The segment in which company is operating is kids and
teenagers. The swot analysis and marketing mix of the company is also studied over here and at
the end some suggestions and recommendations are given.

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 TABLE OF CONTENTS

1. Introduction……………………………………………7

2. History………………………...……………………….8

3. Vision & Mission…………………………………..….9

4. Management Structure…………………………….….10

5. Location……………………….……………………...11

6. Key Objectives………………….…………….………12

7. Products of Kolson………..…….………………….…13

8. Competitors…………………………………………...22

9. Segmentation……………………………….………....22

10. SWOT Analysis……………………………………...25

11. Positioning...……………………………………….…27

12. Marketing Mix………………………………………..29

13. Marketing Objectives………………………………....35

14. Recommendations & Suggestions………………....…35

15. References…………………………………….….…...37

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 REAL NAME ( K.S SULEMANJI ESMAILJI & SONS PVT LTD)

KOLSON: Welcome To The Paradise Of Taste and Flavor

INTRODUCTION

Being a food manufacturing company understand its responsibility to provide consumer

high quality products and selection of best ingredients that add to the nutritional value of our
products.

Kolson brands appeal to an extraordinarily diverse array of consumers. Our consumer segment
starts from as young as one year old who starts developing a taste for snacks and goes all the way
up to older age people who consume pasta and breakfast cereals as part of their healthy diet. In
consumer promotions, designed to enhance the Kolson image, we therefore, try to satisfy the
growing needs of all our target segments.

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 HISTORY

Ever Since its inception in 1942, as on today, Kolson enjoys the distinction of being one
of the Pioneer food manufacturing and processing industries in Pakistan. The name of Kolson is
synonymous with dynamic and innovative food products.

Kolson is proud to be the pioneer in Pasta production in Pakistan. More than 50 years
back nobody could think of Pasta as forming a food habit being an absolutely new food concept
for populace of Pakistan. At present company is market leader in Pasta products such as
Spaghetti, Macaroni, Lasagne, Noodles and Vermicelli.
Kolson also has a leading edge in manufacturing breakfast cereals that are innovative and
extremely popular among the consumers of all ages.

As company hierarchy enters to the third generation, it befittingly coincides with yet
another stunning product, an innovative range of high-class Biscuits. Jam Hearts, Cream Hearts,
Katch and Bravo, being sandwich, crackers and traditional bakery biscuits respectively which are
already fetching consumers’ recognition & appreciation because of its unique and smacking
flavor and texture.

The whole range of Kolson products is made by using latest German, Dutch, Swiss and
Italian etc latest technology and process to back prime raw materials. The raw materials are
procured from the leading available sources in Germany, Denmark, Belgium and Nederland etc.
The high quality Pakistani wheat products, procured from select bunch of millers, are pivotal in
determining the final outcome of high quality products.

As the global economy is taking a different turn in its outlook and demand, Pakistan can not
afford to lag. Kolson is prepared to accept the challenge to be always one step ahead of changes
in offing. This is our simple promise to our die-hard and prospective consumers in Pakistan and
abroad.

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 VISION

The Philosophy of the Kolson is based on self-commitments to offer consumers greater

choice of exclusive quality products. In doing so, the company has, in true sense, evolved its own
marketing style to establish a more effective relationship with consumers.

MISSION

Kolson has the distinction of being among the oldest food manufacturing & processing
industry in Pakistan.

The mission of Kolson is:

• To produce dynamic and innovative food products.

• To build up quality production philosophy.

• To keep pleasant working environment.

• To build up customer satisfaction.

• To continuously and consistently serve for the economic progress of

the country.

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 MANAGEMENT STRUCTURE

CEO:
Mr. Anwarali Mulla Akbarali
MD:
Mr. Saifuddin Sattaanwala
GM:
Mr. Sarfraz Khan
Senior Brand Manager:
Mr. Hatim Sheikh Fakharuddin
Asst. Brand Manager:
Mr. Miraj Hussain
Manager Business Development & Marketing:
Mr. Ali Hadi
Marketing Manager:
Mr. Danish Thanvi
Senior Consultant At HR
Mr. Arif Sohail
Sales Manager:
Mr. Ahmad Jano
Regional Sales Manager:
Mr. Syed Manzar Ali
Area Sales Manager:
Mr. Sarwar Sheikh
Quality Executive:
Mr. Hammad Ali
QA Officer:
Mr. Muhammad Danish Zaki
Brand Manager:
Mr. Zeeshan Zahoor
Business Unit Manager:
Mr. M Azam Khan

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 LOCATION

HEAD OFFICE
Address: Pl/No. 34, Sec 27, KIA, Khi.
Landmark: Roche Company, SINGER Company
Phone: +92-21-35077085, 35077086, 35077087

KOLSON INDUSTRIES, Cookie Companies, Food Products, Food Items, Cake, ManufacturerCity: Karachi.

Year Established : 1942

Employee Size : +1000
Turnover USD / Year : 10,000,000
% Turnover from Export : 20
Years of Export Experience : 50

Principal Export Regions: Asia Pacific

Quality Assurance Accreditation: ISO
Preferred Languages: English
Delay of Payment: Immediate
Usual modes of payment: Bank Wire Transfer (swift)
Irrevocable & confirmed letter of credit
Incoterms: Any Incoterm
Minimum Order Amount: USD 15 000
Aver. Production time from firm order: 1 month
Shipping Port: KARACHI / PORT QASIM
Preferred Currencies: US Dollars

KEY OBJECTIVES

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Like every business the primary objective of Kolson Company is to be flourishing and
earn more profits. But it’s possible only when the company understand the environment
of the market, where:

1. Different types of customer in this region who consider low price but still want
for high quality.
2. Currently weak competition for a multinational company regarding quality with
price.
3. A handsome share of the market is still vacant.
4. Company’s own profit orientation by producing in bulk quantity and reducing
cost.
5. Strong distribution channels are helpful to distribute and sale quickly and can
generate high turn over.

Therefore they pursue following objectives:

i. Produce high quality product at reasonable low price.

ii. Facilitate as maximum share of market as they can.
iii. Customer satisfaction is the top priority.
iv. Acquire the strong distribution channel so the product is made available on
the shelf.

PRODUCTS OF KOLSON

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 COMPETITORS

• LU
• Peek Freans
• Bake Palour
• National Foods
• Tripple-em Industries
• Lays
• Golden Chips

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• SEGMENTATION:
Kolson have the tools and technology to reach any producer’s target market in the food and
beverage industry. Below are lists of the criteria that we use to segment the industry’s major sectors.

 Commercial Food Service Establishments:

Kolson segment restaurants by price range, cuisine type and location. We will
combine any of the below segments to reach your target market, regardless of its size or
complexity:

1.
Price Range Segments
<$15 per meal
$16 to $25 per meal
$26 to $50 per meal
>$50 per meal

Geographical Segments
50 states
277 distinct regions

Cuisine Type Segments

Afghani Deli Japanese Seafood
African Dessert Kosher South Asian
American Eclectic/Fusion Korean Southern
Asian other Ethiopian Latin other Southwest
Bakery European other Mexican Spanish
Brazilian French Middle Eastern Steakhouse
Café German North African Thai
Caribbean Greek Portuguese Turkish
Chinese Italian Russian Vegetarian
Creole-Cajun Irish/British Scandinavian Vietnamese

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 Chain Restaurants

Segmentation Criteria
Sales Volume
Number of Units
Cuisine Type (same as commercial food service segments)
Location of restaurants (by state)
Foodservice type
- Fine Dining
- Casual Dining
- Fast food

 Institutional Segmentation:
Institutional segmentation by Kolson is done by as follows:

Institution Type Segments

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 Schools Nursing homes
Universities Office buildings
Daycare Facilities Manufacturing plants
Jails Cruise lines
Hospitals Trains
Military properties Airlines

Location Segments
277 distinct regions

 Food & Beverage Distributors:

Food Service Distributors are segmented by the types of products they carry
and their distribution range.

Product Line Segments

Baked Goods Frozen foods
Beverages Kitchen Equipment
Bulk Foods Linens
Coffee/Tea Meat
Cookware Organic Produce
Cutlery/Serving Equipment Poultry
Dairy Produce
Delicatessen Seafood
Dried Foods Specialty Gourmet
Ethnic Foods

Other segmentation criteria

Distribution Range by state
Location of headquarters
Food service sales volume
Grocery sales volume

Food & Beverage Retailers

We market to non-chain food and beverage retailers and we segment them into 277 regions.

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• SWOT ANALYSIS:

SWOT analysis is basically a study to find out a company’s strengths,

weaknesses, opportunities and threats. SWOT analysis tells the company about their strong
points and gives them an opportunity to work on their weaknesses.

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The SWOT analysis for ‘KOLSON’ is as bellow:

 STRENGTHS:

1. The biggest strength of ‘Kolson’ is its committed workforce and emotional

attachment with the brand and company.
2. The company has a loyal and committed workforce that’s basic goal is to deliver a
premium quality product. They don’t allow outsiders in the factory premises as
they fear leaking out their secret recipe and risking the emergence of a copy.
3. The current employees are mostly third generation employees in the company and
have seen their forefathers help establish ‘Kolson’. This forms a family like bond
and has created emotional attachment with the brand.

 WEAKNESSES:

1. The biggest weakness of ‘Kolson’ is their lack of vision to grow and diversify. Had
Slims’ wanted to grow, they would have really succeeded due to their increasing
demand in Karachi and Northern areas of Pakistan where ‘Kolson’ is not available.
2. There is also a great demand for ‘Kolson’ in Western countries like United States
of America, and Canada. Hence if ‘Kolson’ wanted to grow, it could have grown in
terms of size as well as introduce different flavors of chips and spices.
3. Facing the enormous competitors in the market
4. Indirect competitors are investing heavily in branding.
5. Although they are trying to make their efforts best to make their supply excellent
but still they are not reached to the rural areas of Pakistan.

 OPPORTUNITIES:

1. Due to a massive demand for Kolson, the biggest opportunity is to enter the foreign
market and capitalize on their demand internationally.
2. Improvement in its Quality as there is always room for the improvements in
anything.
3. Addition of new local flavors helps a lot to sustain in the market.
4. Sponsoring major events and festivals for huge awareness campaigns.
5. Try to make supply in all the areas where the other competitors are existing
already.

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 6. Design such strategies and advance planning to become the market leader in the
smallest span of time.
7. Introduce the family and economy pack to serve the large families which also cost
you cheaper and ultimately will accepted by the consumer.

 THREATS:

1 One of the biggest threats for ‘Kolson’ is that of fake brands that are copying the
product.
2 Competitors who have invested in Bake Parlor like Cookies recently introduced
the exact copy of ‘Kolson’ with different packaging. A prime example of this, is
‘Twitch’, that purely inspired

‘Kolson’ can also have indirect competition from other companies manufacturing
potato chips and crisps such as ‘Slims’, ‘Real’, ‘Bake Parlor’ and ‘Supercrisps

• POSITIONING:

“Arranging for a product to occupy a clear, distinctive and desirable

position relative to competing products in the minds of the target consumers.” Positioning
the brand actually refers to successfully placing the product in the minds of the
customers. Commonly, positioning is done by aggressive advertising and promotion of
the product. Companies also use the “brand recall” strategy. In this, a company uses
different ways to remind he customers about their product over and over again. This
again is done through repetitive television commercials, billboards, posters, flyers and
various marketing offers. But when we talk about ‘Kolson’, there hasn’t been any sort of
advertising or promotional campaign from the company’s side. We talked to several
people and all of them were aware of this brand, yet none could recall watching a
‘Kolson’ commercial, seeing a.

How has ‘Kolson’ positioned itself in the market?

Even though ‘Kolson’ does not advertise its product, it still occupies a
very distinct position in the market. ‘Kolson’ has focused on the fundamentals; it
identified the needs of the consumers when it was launched, and is still satisfying their
wants. ‘Kolson’ emerged as a product to satisfy the spicy taste buds of the Pakistani
people. It was a very innovative product and was not segmented. It targeted everyone- all
age groups, genders, social classes and groups.

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 Since ‘Kolson’ is a relatively old brand, it is being consumed from
generation to generation. People have seen their elders devouring it and
followed in their footsteps. They have eaten it them

selves and now they witness their own children consuming

it. This has created a very strong emotional attachment
towards the product. So it turns out that ‘Kolson’ does not
need to market its product, because it already occupies a
very strong place in people’s minds.

CUSTOMER RELATIONSHIP MANAGEMENT:

Customer relationship management is basically a set of processes implemented by a company to
handle their contact with their customers, it can help in turning customer data into intelligent
action. It consists of storing information about past, present and future customers as well as
prospective buyers. Customer Relationship management can include: Front Office operations,
which include direct contact with customers. Back Office Operations, which basically

affect the activities of the front office (e.g., billing, planning, marketing, maintenance) Business
Relationships, which could be considered the most crucial, interaction with other companies and
partners, this basically supports front and back office operations. Analysis, the important
customer relationship management data is analyzed and helps plan future strategies.

‘Kolson’ AND ITS’ CUSTOMER RELATIONSHIP MANAGEMENT PROGRAM:

‘Kolson’ is and will probably always be a very successful company in Pakistan and
one of the basic reasons for that is because it has tremendous customer relationship management
approach. It has targeted all market segments and helped in building an emotional attachment
with the product. One of the basic principles and goals of customer relationship management is
helping build customer loyalty as well as emotional attachment to the product, which ‘Kolson’
has done tremendously, people have grown up eating the product, and they still eat it, the reason
for that is their strong brand loyalty and emotional attachment. It has a wide range of people
starting from ‘children going to school’ to the older people eating ‘Kolson’ or adding it in certain
foods like “khaoswe”. Innovative and unique products are very successful and that was the
philosophy of the founder of ‘Kolson’, he came up with a new idea which prospered; the need of
this product was identified in the 1970s and its still satisfying the needs of customers today, the
exact same product, the only change so far has been packaging. ‘Kolson’ knows it doesn’t have a
huge number of competitors, with similar quality, even than the company has

‘Kolson’ is considered a very unique brand without any competitors, the demand
often exceeds supply, even than ‘Kolson’ has not expanded its operations

because it wants to give its customers the maximum possible satisfaction, it goes out of its way to
please its customers and provide the best possible product, that is why Karachi is the only city in

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Pakistan where ‘Kolson’ are easily available, in northern parts of Pakistan it is very difficult to
actually find a product like ‘Kolson’, for these customers ‘Kolson’ couriers its product to show
their appreciation to the customer, they go out of their way to make sure the customer has
pleasurable experience, actions like this are not seen in the world today, however ‘Kolson’ goes
out of its way to satisfy its customer and gain brand loyalty and respect. To improve customer
relationships ‘Kolson’ needs to write instructions about their product and how it can affect people
on its packaging, it could help increase the profit.

• MARKETING MIX:

The term "marketing mix" was first used in 1953 when Neil Borden, in his
American Marketing Association presidential address, took the recipe idea one step further and
coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P
classification in 1960, which has seen wide use.

Four Ps
Elements of the marketing mix are often
referred to as 'the four Ps':

 Product:
A tangible object or an intangible
service that is mass produced or
manufactured on a large scale with a
specific volume of units. Kolson’s
product strategy is to provide
convenience and variety to customer
by offering different sizes and style of
products. Its products are :

• Pasta

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• Biscuits
• Chips
• Snacks
• Cereals

• Quality

As far as the quality is concerned, company is producing a high quality

product at a very low price. Customer in this region consider low price but still want
for high quality. Kolson is positioning itself on the basis of unique tastes, flavors,
ingredients and style. When considering the unique tastes, Kolson is offering
delicious product to the customers.

• Style & Design

Style and design matter a lot on the outcome and response of the
product. ‘Kolson’ as the product (inside the pack and out side wrapper) has much
attractive and catchy colors style and design which attracts the customers alot.

• Labeling

Labeling is the significant part of the product although there is less space
available for that but it contains many information regarding the product. On the pack
of ‘Kolson’ following information are available. Nutrition facts & ingredients details
are available on the back side of the “Kolson” in all types of that such product
available in the market for health conscious people. On the front of every Kolson’s
pack it is clearly indicates that it’s a Hilal Food.

 Price:
The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the
customer's perceived value of the product.

The pricing strategy which is Kolson is following, cannot be easily evaluate because from
company has not mentioned clearly about any system. However most of the companies
including this are following the Cost-Based Pricing. But a company cannot follow a single
strategy straightly because in the FMCG’s product market their will be fluence of
competitors based pricing along with a bit affect of customer value.

• Kolson adopted the Going Rate Pricing Strategy to compete with their competitors.

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 • They also keep revising prices according to economic conditions.
• They made the agreement that their prices will remain the same.

Setting the right price is the most important thing, and Kolson is doing well. Price is set by
keeping in view the quality of the product and the prices which are being offered by the
competitors.

Profit Maximization- Pepsi has priced its products to achieve a certain percentage return on its
sales. It has settled the price of its products so that it can earns a net profit on its net sales.
Consumer Satisfaction- There is a balance in consumer’s mind between the price they pay and
the quality of the product they purchase.
Affordable Price- The price of Lays is affordable for middle level income groups. The price is
adjusted according to the demand of the product. When Lays Jumbo pack was launched, its price
was high as Rs. 25 now they reduced it @ Rs.20, causing an increase in demand of the product.

• Packaging
Kolson’s product are available in the market in different packing.

Kolson’s product comes in the air tight packing & packing material of
Kolson is of high quality so that product will remain
fresh and its taste keeps secure up to more than four months. Basic
color combinations are in green and red colors which all are eye
catching. Kurkure is available to the consumer only in primary
packing. No secondary packing is using. However they are delivered in container
packing from production plant to shopkeepers or retailers, which carries 48
packs.

• Branding
Kurkure lies in the manufacture brand because they are producing their
product by its own.

 Place:
Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.

• To cover the market forcefully and efficiently.The company has its own transport
system
• The company has engaged the services of around four hundred (400) well-
established distributors from all over country

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 Promotion:
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion.

• Advertising:
The company has developed its own marketing team
1. --both to sell and to created awareness of its products in the market
2. They use different promotional modes that are:
• Media (Fm media, TV channels, Internet links etc.)
• News Papers & Magazines
• Billboards & Banners
• Sponsoring various Shows and Matches
• Free samples

Sales Promotion:
Kolson made sale promotion in the following ways:
1. When Kolson lauched they offered a package of “Buy 2 and get 1 free”.
2. When Mountain Dew was launched they offered free drinks to people to
develop the taste.
3. They decrease their prices to increase the sales to capture the market.
4. They also decrease their prices in winter too.

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KOLSON while determining its marketing mix consider marketing mix from
two aspects:

Seller’s view Buyer’s view

How the 4-Ps have evolved into the 4-Cs

Consumer wants and needs (vs. Products)

You can't develop products and then try to sell them to a mass market. You have to study
consumer wants and needs and then attract consumers one by one with something each
one wants.

Cost to satisfy (vs. Price)

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 You have to realise that price - what you sell the product for - is only one part of the cost
to satisfy. Pricing is one of the most difficult decisions to make - selling at the lowest
price is not always the best option

Convenience to buy (vs. Place)

You must think of convenience to buy instead of place. You have to know how each
subset of the market prefers to buy.

Communication (vs. Promotion)

You have to consider communication instead of promotion. Promotion is manipulative -

it’s a statement from the seller. Communication requires a give and take between the
buyer and seller - This is much more subtle.

• Marketing Objectives:

• To be a market leader providing quality extruded snack products.

• To strive for excellence and global recognition by continuous improvement,
innovation, dedication and growth.
• Customer attraction towards the product is very important and without this
phenomena company can’t fulfil its targets.
• Strong distribution channel is the foremost element and is required more when the
need increases, so the company should also focus on them and will give them certain
benefits as well as the retailers.
• Company should reduce the cost of production to increase the turnover.

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• Recommendations & Suggestions

Here are some recommendations & suggestions which may open the new horizons of
the growth and progress of the company.
• The company can occupy a huge number of customers by keeping in mind about the
preferences and needs of customers regarding tastes and flavors.
• By introducing new tastes, flavors and retaining the quality standards can attract
consumers of other brands and pull them towards itself by leaving other competitors
far behind and get advantage over them.
• By delivering valued trade promotions to wholesalers and retailers, company can
capture this huge segment. This will allow Kolson to stay in market effectively and
people will order more quantity due to its increased demand by customers.
• The company should try to expand its wings to cover towns, villages, cities; making it
available to everybody.

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• Reference

Websites:
• www.ezinearticles.com/marketing
• www.kolson.biz
• www.scribd.com/finalreports/
• www.thevaluemanagement.com/products
• www.dpf.marketing.com/articles/kolson
• www.wikipedia.com/articles

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