Differentiation and their application in business

Name: Bilal Ahmed Roll no: am552469 Course: Business statistic and mathematics Level: m.com Assignment submitted to: Prof Waqar Ul Hassan Couse code: 8532

ALLAMA IQBAL OPEN UNIVERISITY

ACKNOWLEDGEMENT: First of all we thank to ALLAH ALMIGHTY gave us this beautiful life and blessing us throughout the working on these papers or pages. We are indebted to our respected teacher who’s in dispensable and intricate comments on various aspects conjoined with motivation made us come forth holding such as assignment.

Introduction of Tripple-Em
Company deals in Snack foods and word Tripple-Em denotes the names

Milk Muhammad Aslam (Father) ------------ (Late)

Milk Muhammad Shahid (Son)

Milk Muhammad Rashid (Son)

Tripple-Em was as private limited company based on 100% equity. Company started its business in early 80’s and now, is market leader in the snack food industry. It has approximately captured 58 to 60percent of chips and nimko market and 40 to 45 percent of extrusion market. The sales of super crisp are 9 million per year and it has three product lines such as chips, nimko and extruded product. Company major competitors are Golden, Kolson, Smith and Bunnys. Production plant of company was imported from America and company claims that no such plant is available in Pakistan. The head office of the company is situated in Lahore with address, 122-A Model Town, Lahore. And it has production, finance, purchase, account, marketing and Administration department. The company offers high quality product and maintains its quality, therefore, consumer perception about the product is of high quality.

Commercialization: In 1982 production plant has been installed in Kot Lakhpat Industrial Area. In 1986, Tripple-Em (Pvt) Ltd. Started commercialization of snacks in potato chips range with super crisp, as brands in early 90s. Extruded Range: In 1995 company diversified its products in snacks by introducing extruded product line, usually made from maize, maize flours. Ideal Marketing: Since 1990, all the marketing function was integrated but in 1990. Ideal Marketing (Pvt) Ltd. Was created as a subsidiary of Tripple-Em. Ideal Marketing, as separate entity was made responsible for all the marketing activities of Tripple-Em. But from July 2000 Ideal Marketing has merged with Tripple-Em and all the staff has shifted to main office of Tripple-Em now constituting the marketing department of company. PRESENT STATUS OF TRIPPLE-EM: A Manufacturing organization, Tripple-Em is an organization active in snacks food business. Tripple-Em is private limited company with its head office situated in Lahore with the address, 122-A, Model Town, Lahore. Production plant of company is geographically decentralized, locating in industrial Area of Kot Lakhpat Lahore and its production plant is considered to be one of the best and sensitive in Asia for production of snack. Tripple-Em claims to be pioneering in snacks food under the dynamic leadership of Malik Muhammad Shahid, Chief Executive of Company.

In snack food Tripple-Em is selling three product ranges.  Potato Chips Products  Nimko products  Extruded products

MISSION STATEMENT: “Our primary objective is to produce competitive, cost effective quality products, conforming to the customer’s requirements”.

OBJECTIVES OF ORGANIZATION: An organization objective is a target to which the organization directs its efforts. Establishing objectives is very important for any company. Objectives provide foundations for planning, organization motivating and controlling. These are important to keep the organizational activities in one direction. The objectives should be measurable, quantifiable, achievable, flexible, and consistent with the organization mission. The company uses the objectives for the following purposes:  Managers use objectives as a guideline for decision-making.  Management uses the objectives to increase the organizational efficiency.  Management uses the objectives as a guideline for performance appraisal.

Tripple-Em (Pvt.) Ltd, has established the organizational objectives in the following areas:  Quality objectives  Profitability  Brand Image

   

Market share Innovation Growth objectives Social responsibility

Test of hypothesis: Hypothesis testing is the branch of inferential statistics that is concerned with how well the sample data supports a null hypothesis and when the null hypothesis can be rejected in favor of the alternative hypothesis. Tripple-Em Is selling 22 brands of various snacks with 22 varieties, and Tripple-Em as corporates brand and super crisp as umbrella brand along with specific brands. Tripple-Em is the brand leader in snacks food industry, which is at growth stage currently, capturing more than 60% market share in its chips/nimko product range and more than 40% market share in extrusion product range. Its Tripple-Em is operating nationwide in all the four provinces of the Pakistan. Quality Objectives: To achieve ISO 9001-2000 conversion/certification by end of June 2003.

 To maintain the production wastage between 2 –3%  To achieve the sales target of this year (10% more than the year 2001-2002)  To initiate export of company products by at least 2 containers this year. Profitability:  Maintain a consistent increase in return on investment (R0I)  Maximize shareholder’s wealth  Maximize net profit margin

Price: Tripple-Em is profit oriented business. So its pricing policy is also profit oriented. Pricing objective: Company peruses following objectives through its pricing strategies. Quality leadership: The aim of the company is to pioneer quality leadership through its pricing. Pricing method: Company tries to price its offer in terms of different segments of market. PRODUCT PRICE AND SEGMENTS:

MIDDLE CLASS:

Following brands are priced for middle class people

Potato Chips Range

Nimko Range

Extrusion Range

Mr. Crisp Super Crisp

Nimko Mix Fried peanuts Daal Moong

Dinomunchies Potato stump Giggly waves Super Star

Target Costing Strategy: To quote a price for a segment of market, company then employ the method of Target costing, which specifies the price at which product must sell, given its target customer and competitors price, it is achieved by lowering elements of cost e.g. Crisp Mini, Mr. Crisp and Caption Chips, the packaging wrapper is used which is not aluminum coated so it considerably lower the production cost and product can be sold at desired price Competitive Pricing: Company analyses and determine the competitor’s price for competitive offering. Company makes every effort to price the products close to the competitors. As the main concern of Tripple-Em is quality leadership that entails high price, Company has competitive brand to respond the competitor’s low price. In potato chips range super crisp is quality leader but to counter the low priced competitors brands, captain chips have been launched as competitive brands. PLACE: Place, ma word used interchangeably with distribution is a critical tool in marketing mix. It includes all the activities which company undertakes to make the product accessible and available to target customers. Product Category: As Tripple-Em is dealing in the snakes food, which falls in fast moving consumer goods and perishable product category. So this characteristic of product necessitates more and more direct marketing and distribution channel strength So Tripple-Em emphasizes active and more direct distribution method in its marketing mix. Sale force: Apart from the intermediaries in distribution channel, the major role in distribution (Place of products is played by company’s own sales force. Sales force

members are company’s representatives who work as close liaison with the distributor in all the areas of distribution. Sales Force is active in the market to secure all the interests of company regarding sales.

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