University of Central Punjab

Golden Group of Companies Standard Foods (Pvt) Limited Golden Potato Chips
Introduction to Marketing
Prepared for: Section: E Prof. SHAZAD 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 2 2A 2B 2C 2D 2E 2F 3 4 4A Executive Summary Introduction Mission Statement History Philosophy Network Target Market Demographic Marketing Mix Product
Brand Names

4B 4C 4D 4E 5 5A 5B 5C 5D 6 6A 6B 6C 6D 6E 6F 6H 7 7A 7B 7C 7D

Variety Quality Packaging Features Price Combination Based Other factors Discount Policy Cash Sales Promotion Methods of Promotion Selecting Advertisement Media Advertisement Timing Creating Advertisement Public Relations Budgets Feedback Placement/Distribution
Channels

Coverage Inventory Logistic

8 9 10 11 12

SWOT Analysis Recommendations Acknowledgment Credits 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 philosophy that

(Pvt)

Limited

has

a

working

• • • •

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, Islamabad and many others. 2F. DEMOGRAPHIC

Sialkot,

Muree,

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 parties like

affected by commission of different 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 ECommerce 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