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University of Central Punjab

Golden Group of Companies
Standard Foods (Pvt)
Limited
Golden Potato Chips

Introduction to Marketing
Prepared for: Section:
Prof. SHAZAD
E ALAM
Group: K
Prepared By:
Mohsin Mahmood
Haq Nawaz
Ahmed Saleem
Bilal Amin
M. Jawad Qamar L1S07MBAM2006
L1S07MBAM2015
L1S07MBAM2019
L1S07MBAM2034
L1S07MBAM2035
PREFACE

We were assigned to prepare a Marketing Report
on Standard Food (Pvt) Limited: Golden Potato Chips
i.e. about their Marketing Mix (Product, Price,
Promotion, and Placement/Distribution) e.g. on which
method Standard Food is setting price of their
product. Method of promoting their product. Contacts
of company with its channel member and their
methods of maintaining product.

SWOT (Strength, Weakness, Opportunities,
Threats) analysis e.g. the features that the company
product has, the weak points the product has,
chances company can avail on capturing market and
the competitors the company will face.

It was a very tough work of collecting all the
information and giving it the shape of a Report. We
have collected the information form different sources
i.e. most of the information is collected through
personal conservation with company’s staff,
conservation with retail stores owners, company’s
broacher and some other sources.

We learnt a lot from this report that how the
companies actually apply marketing strategies in
their practical life, their networks with different
parties like suppliers, wholesaler and distributors and
different procedures in making product etc.

CONTENTS
Page No.
1 Executive Summary
2 Introduction
2A Mission Statement
2B History
2C Philosophy
2D Network
2E Target Market
2F Demographic
3 Marketing Mix
4 Product
4A Brand Names
4B Variety
4C Quality
4D Packaging
4E Features
5 Price
5A Combination Based
5B Other factors
5C Discount Policy
5D Cash Sales
6 Promotion
6A Methods of Promotion
6B Selecting Advertisement Media
6C Advertisement Timing
6D Creating Advertisement
6E Public Relations
6F Budgets
6H Feedback
7 Placement/Distribution
7A Channels

7B Coverage
7C Inventory
7D Logistic
8 SWOT Analysis
9 Recommendations
10 Acknowledgment
11 Credits
12 Bibliography

EXECUTIVE SUMMARY

Standard Foods (Private) Limited is one of the
company of Golden Group of Companies which
produce high quality Snack food products like Potato
Chips, Fried Nimko, Fried Nuts Chocolate etc.

In this report you will find detail analysis of
Standard food (Pvt) Limited Product Golden Chips.
This product complies with international standards
like Institute of Food Technologists and Snack
food Association. The combination based price
method adopted by the company for its product
Golden chips. The media like advertisement through
Pamphlets, News Papers etc Company uses for
promoting Golden chips. The company network
through is distribute Golden chips Countrywide.

The Golden Chips features like low in cholesterol;
Freshness is preserved by special packing, hygienic
working condition and recognized by international
Institution. Weak point of product like Non
availability and some others are also discussed.
Opportunities like company should deliver it product
to other cities where market is not saturated and
some other improvement to its product. The tougher
competition faced by Standard food (Pvt) Limited
from its competitors.

Group recommends that Standard food (PVT)
limited should increase budget for advertisement,
increase its distribution network with external
parities and should also increase its production level.

INTRODUCTION

2A. COMPANY’S MISSION STATMENT

Golden Group of Companies has always followed
a vision which embodies growth, quality and
customer satisfaction in the country. The best results
of company has been possible through a policy of
setting objectives based on market oriented
strategies, exacting the most out of their resources,
optimizing their skills and not missing even the
smallest opportunities that pass by them. They have
responded and adapted themselves to the changing
market needs on corporate, business and product
levels. Perseverance has been possible through
changes for the betterment. This outlook keeps their
management on its toes for delivering high quality
products at competitive prices. It also helps them to
have a more innovative approach.

2B. HISTORY
In 1984, two brothers from the city of PakPatan
Habib Ullah and Zafar Ahmed started planning to
do some big business. So they take loans and formed
Golden Group of Companies. Standard Foods (Pvt)
limited is one of their companies. This company
became the pioneer in export quality snack food
production in Pakistan. The company plants are
imported from First world countries like England,
Japan and U.S.A and many others. Standard food is
one of the first company in Pakistan that chips
processing plant consist of automatic peeling
equipment, washing equipment, shelling line, frying
equipment having an indirect heating system with a
heat exchanger, automatic seasoning equipment,
integrated selection conveyors and bucket conveyors
along with a computerized vibratory weighing
system.

2C. COMPANY’S PHILOSOPHY

Standard Foods (Pvt) Limited has a working
philosophy that

• Recruiting and Grooming a team of highly
motivated professionals
• Promoting a business culture which encourages
‘team work’ for goal achievement
• Cultivation of a healthy work environment for
all employees to facilitate personal growth
• Fostering a strong business relationship with
financial institutions
• Developing production facilities that include
state-of-Art equipment ensuring an output of
high quality products
• Continuous investment in Research &
Development projects for the improvement of
the existing product range as well as the
introduction of new products in the market
• Maintenance of a penetrative marketing
network throughout Pakistan
• Using only the premium quality ingredients in
our production processes
• Development of avenues to explore the foreign
markets with the exports of our products

2D. COMPANY’S NETWORK

Golden Group of Companies Limited has a vast
network through out the country. The companies
include are

• Farooq Habib Textile Mills Limited

• Standard Fruits Limited

• Standard Foods (Private) Limited

• Standard Cold Storage and Ice Plant

• Star Cold Storage and Ice Plant

However our concern is Standard Foods (Private)
limited their clients are Five Star Hotels,
confectioners, biscuit manufacturers, ice cream
producers and more than a 100 distributors houses
spread countrywide. Company also exports its
products to some other countries worldwide.

Standard Food (Pvt) limited primarily uses
indirect distribution channels through out Pakistan.

2E. TARGET MARKET

The target market of Standard Food (Pvt) Limited
is young generation and children for middle and high
income class. Its targeted markets are Lahore,
Karachi Faisalabad, Gugrawala, Sialkot, Muree,
Islamabad and many others.

2F. DEMOGRAPHIC

The market consists of children and teenagers.
They represent the large segment of market.

3. MARKETING MIX

The Marketing Mix of Standard food (Pvt) limited
consists of Four P’s i.e. the Product, Price, Placing
and Promotion. Now we will explain marketing mix in
more detail e.g. that how Standard food apply these
P’s while making and implementing business
strategies.

4. PRODUCT

Product is the good or service in which company
is dealing. Product planning is one of the most
important step. Product planning is systematic
decision making relating to all aspects of the
development and management of a firms product
including branding and packaging.

Importance

Standard food (Pvt) Limited has different
snack food products e.g., Potato chips, Nimko,
Dry Fruits etc. They consider product planning as
vital aspect of their company. They produce their
product on international standards which have
unbeatable quality. The company wants to make
an image of its product in consumer mind by
making its product more standardized.

4A. BRAND NAMES

Standard food (Pvt) Limited has different snack
product which are sold under the common brand
name Golden. Following are the sub names of
products

• Krunch! (Potato chips)

• Nutty Nimko (Nimko)

• Nutty Peanuts (Peanuts)

4B. VARITEY

There is a vast variety in Potato chips which are
offered. There are different forms of chips like Plain
Potato Chips, Ridged Potato Chips and Potato
Shoestrings and indifferent flavors which are Original
Salt Recipe, Spicy, Lemon, Tomato Ketchup, Paprika,
Chill, Barbeque, Chicken, Onion, Garlic, etc

4C. QUALITY

Companies can leave a strong impact on
consumer mind by providing high quality. Standard
food also follows this philosophy. They provide high
quality in their products because they have to face
tough competition in the market from its competitors
like Lays, Kurkuray, Smith chips and many others.

Standard food: Golden Chips is also the member
of international food and standard Associations

• Institute of Food Technologists

• Snack Food Association

They have modern laboratories and strict rules
regarding hygienic working conditions in the
company which are applied to maintain high quality
control during product processing.

Potatoes are carefully graded and selected by
the company. They select only farm fresh potatoes
which are sliced very thin and deep fried in pure
vegetable oil and apply finest flavors that customer
will like.

4D. PACKAGING

Packaging is an essential part of product planning in
which companies make research on packaging designs with
product safety attribute.

As Golden Chips is environment sensitive product
therefore Standard food pack their Golden chips in special
Metalized packs with extra barrier quality to ensure that
chips always reach their customer with that “JUST” cooked
taste.

4E. FEATURES

Golden chips has following features

• Low in Cholesterol
• Low Calories

• Low Price

• Fresh & Crisp Guaranteed

5. PRICE

Price means determining the price of product by
concerning factors that can affect it. Price can be Cost,
Demand, Competition based and if we integrate these three
we get Combination Based Price.

• Cost Based Pricing
In cost based pricing Price
is computed by determining the cost incurred on
production by the company. This technique is not
effective because it doesn’t consider dynamic
market conditions e.g. over production, competitors
product price etc.

• Demand Based Pricing
In demand based pricing
Price is determined by examining the market
demand of product. This technique is also not stable
because in cases where competition is high price
should stay low otherwise consumer will buy
competitors product.

• Competition Based Pricing
In this technique
price is determined by analyzing the competitor
price. Competition based pricing is suitable to both
company and consumer. In this technique the
competition in market is low as all the companies
have same price.

• Combination Based Pricing
When all the above
techniques are combined Combination based pricing
comes. It is the most suitable pricing method. It is
used by many companies worldwide.

Importance
Standard Food (Pvt) Limited have
also given importance for pricing its products. They
have adopted Combination based pricing which is the
most suitable.

5A. COMBINATION BASED

Standard food (Pvt) limited pricing policy is
combination based. As it is the most suitable pricing
policy. Companies can adjust their price according to many
factors. Following are the factors which are affected in
Combination based pricing policy

• Cost
Cost of production is one of the important
factors in deciding price of the product Golden Chips.
Standard food adopts this pricing policy according to
the circumstances. They figure it out by the cost of raw
material rate and many other expenses e.g. electric
consumption, ware housing, transportation etc

• Consumer (demand)
Standard food also set their
product Golden Chips price according to the market
demand of their product e.g. they increases the price of
snack food and juice drinks in boosting seasons like
summer when demand for their product is high in
market and drop product price in depression seasons
like winter when demand is low in market.

• Competition (competitors)
In some
circumstances Standard food also adjust the Product
Golden Chips prices according to the competitors
Product price. So to keep its market share safe.

5B. OTHER FACTORS

There are also some other factors which affect Product
Price adjustment of Standard food (Pvt) Limited.

• Government
Government taxes and policies also
affect the price of Golden Chips like wise Sales tax,
General tax and some others when increases product
price also increases and change in Govt. policies also
affect the price. Standard Food adjusts their price policy
Govt. working.

• Transportation
Transportation cost also affects the
Price of Golden Chips in different areas. The higher the
transportation cost the more the price of
Golden chips increases.

• Channel Member Commission
Price is also
affected by commission of different parties like
Distributors, Wholesalers, and Retailers.

5C. DISCOUNT POLICY

Standard Food (Pvt) Limited give discount on lump sum
orders, loyal customers, super markets etc.
• Bulk Orders
Company gives 10% to 15% discount on
bulk orders by wholesaler through out the country but
variation in prices occur due to other price affecting
factors discuss above.

• Loyal Customers
5% to 10% discount is also given
to companies loyal customers who have dealing with
company for more then a decade.

• Super Market
Standard Food (Pvt) limited also has
some contracts with Super Markets of their product
Golden chips in which they provide high discounts.

5D. CASH SALES

Standard Food (Pvt) Limited has a cash sales policy.
They don’t offer their product on credit basis while some of
their competitors have credit sales policy which is a draw
back for them.
6. PROMOTION

Promotion means to inform and tell others about your
organization or good or service you are providing in the
market.

Promotion planning is an important systematic decision
making relating to all aspects of an organization’s or
individual’s communication efforts.

Importance

Promotion is very important element of the
marketing mix. Consumer must know about the
organization and the products it offered. Realizing the
importance of the promotion standard food (Pvt) limited
is also promoting their products through different
channels and medium.

6A. METHOD FOR PROMOTING

A product can be promoted through different methods.

• Advertising
o Television
o Internet
o Broachers
o Telephone
o Mails
o Magazines
o Radio
o Billboards
• Public Relations

Standard Food (Pvt) Limited is promoting its product
Golden chips through Television, Broachers, Magazines,
Billboards Advertising and also through Public relations.

6B. SELECTION OF MEDIA

Standard Food (Pvt) Limited is promoting its product through
following media

• Electronic media: They are advertising Golden chips on
TV occasionally. Their ads can be seen on Geo TV, PTV
and some others.

• Print media: Most of their advertisement is taking place
through print media. It includes bill boards, pamphlets
and stickers.

6C. ADVERTISMENT TIMING

They are giving ads through different Medias when the
demand in market is likely to increase e.g. seasonal
changes. Or when the competitors are capturing the market
by increasing their advertisement.

6D.CREATIVE ADVERTISMENT

Standard Food (Pvt) Limited look at the contents of the
advertisement which are designed e.g. are they look
creative to public, after that they schedule the contents of
the campaign and then they select their media for
advertisement.

6E. PUBLIC RELATION

For the improvement in public relations Standard Food
(Pvt) Limited is planning to enter in the online world of E-
Commerce they are creating a website
www.goldengrouppk.com which is underdevelopment and
their email address are sfl@magic.net.pk

6F. ALLOCATED BUDGET

Standard Food (Pvt) Limited is allocating a nominal
amount of budget for the promotion of the golden chips. It
mainly depends on the kind of media they are using for the
advertisement.

6G. OBJECTIVES

The following may be the objectives of promotion.

• Stimulating demand
• promoting image of the organization

The main objective of the promotion of the Standard
Food (Pvt) Limited is to stimulate demand of their product
golden chips among the public.

6H. FEEDBACK

They evaluate the success or failure of their
advertisement through feedback from distributors that the
demand for the product Golden Chips has raised or not.
What faults public find in the Golden Chips etc.
7. PLACEMENT/DISTRIBUTION

Placement includes activities and parties that create
and deliver product to its intended customers. This requires
careful distribution planning with regards to physical
movement and transfer of ownership of the product from the
Standard Food (PVT) limited to the consumer.

Importance
Standard Food (Pvt) Limited has also
given importance to the placement of Golden Chips.
They have built a vast network of Supplier, Distributors,
and Retailer etc.

7A. CHANNELS

Standard Food (PVT) Limited uses indirect channel of
distribution which includes channel members Standard food
(PVT) limited, wholesalers, retailers and customers.

Standard food
(Pvt) Limited

Wholesaler

Retailers

Customer
7B. COVERAGE

Through the use of the indirect distribution, channel
Stander food (PVT) Limited cover major cities of the country.
They cover cities like Lahore, Faisalabad, Gujaranwala and
Sargodha etc.

7C. INVENTORY

Stander food limited uses inventory management
system to provide continues flow of their Golden Chips to
their intender customers. They do not keep large
inventories, because they keep on introducing new flavors,
so they try to be on a minimum but sufficient level, to meet
customer demands. They maintain inventories proportional
to achieve the highest inventory turnover rate.

7D. LOGISTICS

Logistics includes broad range of activities concerned
with efficient delivery of raw materials; semi finished items
and finished products to designated places, at designated
times, and in proper condition. Logistics involves functions
as shipping, warehousing, inventory control, private
trucking-fleet operations, packaging, receiving, materials
handling, and plant, warehouse, and store location planning.

8. SWOT Analysis
By getting all the possible data about Standard Food (Pvt)
Limited we think that the company has following Strength,
Weakness, Opportunities, Threats

Strengths

• Product high standard which is approved by
International institutions.
• Product Features like low in cholesterol, low price
etc.
• High quality metalized packing which preserve the
freshness.
• Company offer vast variety of flavors in Golden
Chips.
• Modern production plants which they have imported
from the first world countries.
• Large Production capacity of plant is also one of
their strength.

Weakness

• Sales only on cash term basis and ignoring credit
term basis.
• Allotting low budget for Advertisement.
• Ignoring the moves taken by competitors e.g.
advertisement, product standard, capturing market
etc.
• Very low budget for employee training due to which
working efficiency of the employees is low.

Opportunities

• Standard Food (Pvt) Limited business is limited to
only to major cities so it can expand its business by
going into new market where demand for their
product is high e.g. Peshwar, Chamun, Okara,
Abbottabad, Bahawalpur, Chakwal, Dera Ghazi Khan
and many others.
• Standard Food (Pvt) Limited can also export its
product Golden Chips to international market as it
meet the international standards.
• Company can introduce new flavors e.g. French
Cheese, Soy Sauce & Butter, Fish, Vegetable etc.
• Online marketing of their product.

Threats

• Standard Food (Pvt) Limited can have a threat form
its Competitors like Lays, Smith Chips, Kurkurye and
many others.
• Due to aggressive marketing campaign by its
competitors Standard Food (Pvt) Limited has a threat
to lose its market share.

9. Recommendation

Our group recommends that Standard Food (Pvt)
limited should launch vast advertisement campaign to
inform its potential customers about the strengths of its
product Golden Chips. Budget should be allocated for the
employees to improve their work efficiency, different kind of
allowances should also be provided to Employees. Standard
Food (Pvt) Limited should also expand its business by doing
business online due to which more reputation could be
earned.

10. Acknowledgment

We are thankful to Prof. Shazad Alam who gave us
the opportunity of making this report which furbished ours
skills in making Reports.

We like to thank Mr. Rana Sattar Ahmed Khan Main
Office Manager to provide us the major information about
company
And we also like to thank Production and Marketing
Manager of Standard Food (Pvt) Limited who don’t disclose
their names to us due to some reason.

12. Credits

Group Coordination, Report Formation and Company History
Done by

Mohsin Mahmood
Data on Product Collected by

Haq Nawaz
Data on Price Collected by

Ahmed Saleem
Data on Promotion Collected by

Bilal Amin
Data on Placement Collected by

Jawad Qamar

SWOT Analysis done all Group Members

13. Bibliography