This action might not be possible to undo. Are you sure you want to continue?
SUBMITTED BY GROUP NUMBER 4
SUBMITTED TO Mr Waqar Ahmed Awan
ARMY PUBLIC COLLEGE FOR MANAGEMENT SCIENCES AFFILIATED TO NUML ISLAMABAD
A Field Survey Project Report is never successfully completed without the support and assistance from appropriate persons. We express gratitude towards all those, who have helped us to complete the project. We dedicate our work to disabled people who always need our support. We would like to thank our Professor Waqar Ahmad Awan who has afforded us the opportunity and provided the guidance for every step. Following team members participated in this survey: a. b. c. d. e. Roll No 1600017 Naveed Haider Malik Roll No 1600038 Zafar Masood Roll No 1600011 Roll No 1600054 Roll No 1600043 Tanvir Ullah Qureshi Waseem Almas Usman Tariq
Field survey project has greater importance in business world. Surveys are useful for getting a great deal of specific information. Surveys always contain questions, interviews, and observations. Our study is about Consumer Buying Behaviour on buying macaronis of Bake Parlor, a food product. We have resorted to observing intended customers and noted their re-actions during buying. Our study group carried out research in Rawalpindi zone only. We have focused on a particular segment of society with a view to identify consumer perception, attention, information processing, understanding and choice behaviour. The product packaging preferences of consumers, time spent and actual choice of products in the retail stores. The product handling by store owners and usage in consumers’ households. There are various brands of macaronis available in the market. The market is having competitors and therefore, a consumer experience, variety of choices to select a specific brand. It was difficult task to describe consumer buying behaviour about macaronis because it is still considered to be an alien food and not consumed by the Pakistani society normally, however, we have focused on specific areas where consumer purchases this product and particularly macaronis of Bake Parlor brand.
TABLE OF CONTENTS
SR NO. PARTICULARS PAGE NO
CHAPTER I 1. 2. 3.
AIM AND OBJECTIVES OF STUDY OVERVIEW OF BAKE PARLOR COMPANY, ITS BRAND POSITIONING AND HISTORY COMPETITORS AND THEIR MALLAT SHARE
5 6-11 12-13
CHAPTER II 4. 5. 6. 7.
CONSUMER BUYING BEHAVIOUR INTERNAL FACTORS EXTERNAL FACTORS DECISION MAKING PROCESS
14 15-16 17-18 19-22
CHAPTER III 8. 9. 10.
LIST OF STORES AND SELECTION CRITERIA CHARACTERISTICS OF A TYPICAL BUYER OBSERVATIONS AND CONCLUSIONS CHAPTER IV
23 23 24-25
ANALYSIS CHAPTER V
AIM AND OBJECTIVES
AIM. To study the buyer’s behavior to enable the marketer's to sell effectively the OBJECTIVES a. b. To identify segment of society who prefer to buy Italian Food products. To identify the influence of different characteristics/features of macaronis on consumers in different segments.(i.e) families, business persons, students and children. c. d. e. To find out why consumer prefer Bake Parlor macaronis, particular brand? Which are the factors that influence and motivate to buy the preferred brand food item? To get a better understanding about Italian Food Market, its competitors and their market share. Preference accorded to an item among the various kinds of macaronis and to find out why a particular brand enjoys the status of market Leadership. f. Impact of decision making. g. To highlight the impact, advertisement on consumers in different Age Groups, Income Groups and by professions. To recommend a suitable design for an Effective Marketing Mix for its target Customers.
Bake Parlor products.
BAKE PARLOR INDUSTRY OVERVIEW
3. Bake parlor has developed a history of entrepreneurial excellence ever since its
inception in 1926 and now a days owns the largest flour mills in Karachi. Management techniques, quality standard and passion for growth have propelled them to be at the top in Pakistani food industry. A wide product diversification and market development strategies have enabled the company to grow tenfold within a decade. Today they have product portfolio includes flour; confectionary, vermicelli, a complete range of pasta items (Macaroni, Spaghetti) and snacks etc. Company is owning all entities from flour mills to trading companies. More than 500 employees constitute work force nationwide in plants and corporate offices. A thriving culture of teamwork to accomplish specific tasks and coordinate with other departments; this approach includes Cross-Functional Teams and Permanent Teams. Company believes in employees as main differentiating factor, effective application of the latest management and leadership techniques are essential for creating value in the corporate environment. Bake parlor enjoys the privilege of being an equal opportunity employer. 4. Market development and penetration are their key priorities. They believe that their
products portfolio demands a global audience; in this regard they have established an Import-Export department to explore probable markets and develop positioning strategies. To accomplish this target, their installed production capacity and expected additional increments, make it in an ideal position to develop foreign markets while maintaining top quality service to local consumers. They have the vision that probability of a global food crisis in the near future and being a responsible corporate citizen are developing effective strategies to protect consumers and maintain service standards, provided that a stable economic situation persists. Company has the membership of ISO 9001, Snacks Food Association (SFA), accreditation from Food and Drug Authority (FDA) of USA and utilizing these platforms to provide quality food at the same price levels. 5. Vision of Bake Parlor. "To attain sustainable competitive advantage at a global front by associating 'Bake Parlor' with nutritious, scrumptious and diversified food product range."
Mission. Bake Parlor offers 'more for less' by providing a diversified product range
with premium quality and extra quantity at an affordable price. We consistently monitor our ingredients mix by analyzing our consumers eating habits so as to provide food that is easy to cook and fun to eat. We acknowledge the global food commodity needs and consider it our responsibility to make the most out of limited resources. We decipher opportunities and make the most out of them. Our operational efforts are subject to continuous improvement and our success trickles down to our customers, employees, business partners, community and environment that is how we aim to sustain it. 7. • • • • • 8. • • • • • • Products Cholesterol Free Italian Macaroni Delicious fruity bun Spicy sauces and Ketchups Sumptuous Punjabi Vermicelli Fresh white flour for hot chappatis Affiliations/Partners. Associated, affiliated and/or certified with the following
organizations: Accreditation service for certifying bodies [(ASCB (E)] Europe http://www.ascb.co.uk/ U.S Food and Drug Administration (FDA) http://www.fda.gov/ Snack Food Association (SFA) Europe http://www.sfa.org/ Trade Development Authority of Pakistan (TDAP) http://www.epb.gov.pk/v1/,formerly Export Promotion Bureau of Pakistan Karachi Chamber of Commerce and Industry (KCCI) Korangi Association of Trade and Industry (KATI) http://kati.com.pk/ • All Pakistan Flour Mills Association (APFMA) Sind Chapter • Bread Manufacturers Association of Pakistan.
SEGMENTATION, TARGETING AND BRAND POSITIONING AND HISTORY 9. Products of Bake Parlor enjoy considerable number of consumers in the entire
region and the stores visited by us. The customers of Italian foods have been found from lower middle class to elite class. Brand loyalty was evident from the visibly abundant stacks of the product and also due to its rich healthy ingredients. Macaronis of bake parlor is amongst the fastest growing brands in the company’s portfolio and is likely to be the market leader with almost a major share of the market. Marketing involves to identity the needs / wants of the consumers and fulfill them accordingly. To satisfy its customers, a business must create a successful mix of:
• • • •
The right product or service. Sold in the right place. At the right price.
(PRODUCT) (PLACE) (PRICE)
Using the most effective forms of promotion. (PROMOTION) (4Ps of marketing)
10. Product Range a. Cholesterol Free Italian Macaroni • • • • • • • • • • • • • Spaghetti Box Fancy Spaghetti Real Egg Noodles Lasagna Long Macaroni Box Macaroni Box Fancy Macaroni (Big Elbow) Fancy Macaroni (Ring) Fancy Macaroni (Screw) Small Elbow Fancy Macaroni (Werm) Fancy Macaroni (Shell) Biryani Macaroni Thai Green 8
• b. c. d. e. 11.
African Spice Macaroni
Delicious fruity bun Spicy sauces and Ketchups Punjabi Vermicelli Fresh white flour for hot chappatis
Product Classification a. On Basis of Durability. Macaronis are tangible in nature and nondurable. They can be cooked and consumed over a short period of time. Macaronis are consumed frequently hence are purchased frequently. b. Usage: Consumer Products. Macaronis are used by consumer for
personal, family or household use and is bought with the intension of satisfying personal needs. It can be further classified as a convening product as they are bought with a minimum thought and effort. 12. Positioning. It is counted in the fast food segment and is positioned as a
nuturish food. All the brands of Bake Parlor are known for its rich ingredients which is namely targeted for children and teenagers as a tasty / healthy food that can be consumed as lunch/dinners etc. Hence it is promoted being a healthy food as it would give a person the energy require to perform his routine duties and so is aptly named “ABB TU SUBB HI KHATE HAIN ”. 13. Brand. Bake Parlor has used the brand extension technique by launching a
variety of its different brands under the same food product category to cater for different buying patterns of the consumers. 14. Packaging. Bake Parlor’s company logo is written in maroon background with
wheat grains. Logo represents vitality and purity. It attributes help in promoting Bake Parlor’s products. Similarly, all products are packed in coloured packaged both in paper packet and pouch, which have different colors that has a window made in it which shows the product. As a result, it differentiates from other similar products of the competitors. Thus it acts as a silent informer for the consumer and sellers. The variety of colors and shapes of products attracts the attention of the consumer trickling down to help in increasing the sales. All products / packaging style informs the consumer about the
contents / features of the product. The packaging is also done in such a way that it is easier for wholesalers and retailers to handle the products. Varying packing also help in reducing price and also generate an impression on the consumers that they are getting quantity at a reduced rate. These factors help in easy sale and marketing of the product. 15. Labeling. Labeling is the process of exhibiting important information on the
product’s package. All the Bake Parlor variants shows the ingredients of the product, calories provide, the mating address for sending feedback / complaints if any. The package also has an Eco mark on every packet that is manufactured. 16. Price. Pricing is one of the most important elements of the marketing mix, as it is
the only mix which generates a turnover for the company. The remaining 3P’s are the variable cost for the company. It costs to produce and design a product. Price must support these elements of the mix. Pricing a product too high / low could mean a loss of sales for the company. Pricing should take into account the factors like fixed and variable costs, competition, company objectives, proposed positioning strategies, target group and willingness to pay. The pricing strategies are based much on what objectives the company has set itself to achieve and Bake Parlor has adopted a number of pricing strategies: a. b. Competition Pricing. Product Line Pricing. They have set a price which is competitive when Priced different products within the same product
compared with competitors. range at different price points. The better features / benefits given the greater the consumer will pay. This form of price discrimination assists the company in maximising turnover and profits. c. d. 17. Bundle Pricing. Value Pricing. The company bundles a group of products at a reduced They have also used value based pricing. price when providing family packs. Bake Parlor is working a lot on fixing the price of its product range. It has provided
packing in various sizes and at various prices. Its macaronis ranges from Rs. 40/- to Rs. 60/-. Other products has a range from Rs. 5/- to Rs 65/-. Affordability is the key to success and at the some time making it difficult for competitors to compete. 18. Place. Though prices vary widely from product to product, roughly a fifth of the
production cost of an item expended availability for the customers. The term 'place' deals
with various methods of transporting and storing goods and then making them available to the customer. Getting the right product to the right place at the right time involves the distribution system. Distribution is the process of moving goods and services to the places where they are needed. Channel Levels. The channel of distribution used by Bake Parlor is intensive distribution. Products were available at all the stores we visited and a complete range was found. Generally, stores have placed the products of Bake Parlor at a This type of distribution helps when convenient place i.e eye level is the buy level’. for location convenience. 19. Promotion. Promotion includes all of the techniques that a company uses to
products are categorized as low involvement of the customer and where customer looks
communicate with actual and potential buyers. An important avenue for communication is advertising. Advertising communicates the desirability, emotional benefits and exclusive features of the product. Bake Parlor is promoting its products through cooking shows and by inviting Chef Mahboob in the TV shows. The ad campaign has been prepared by Noman Habib. Costs are shared with retailers. The retailers sell more - the more Bake Parlor is able to earn profit/sales. Company is striving for brand building through its nationwide supply chain. Brand building is an integral part of Bake Parlor’s marketing philosophy with continued promotions for its various brands creating loyal customers in the process. So, they created the, MAZAY KE DEWANE HAIN HAIN campaign. COMPETITORS 20. Kolson. It is based at Karachi. Pioneer food manufacturing and processing AAB TO SABB HI KHATE
industries and Pasta production in Pakistan. It is offering greater choice of exclusive quality products and high quality products with added nutritional value to its consumers. Various brands appeal to an extraordinarily diverse array of consumers starting from youth to old ages are in process of developing a taste for snacks. Company claims to be market leader in Pasta products such as Spaghetti, Macaroni, Lasagne, Noodles and Vermicelli. Other products of this company are Biscuits (Jam Hearts, Cream Hearts, Katch and Bravo, being sandwich, crackers and traditional bakery biscuits).
21. Golden. Based at Karachi produces all range of Italian food products. This company is also producing other products i.e. juices, chips etc. 22. Taste Cuisine. They are new competitor as compared to others. They have
approached its customers by selecting a brand name which gives impression of complete satisfaction. Company is expanding its sales effectively. 23. Crispo. Company is providing Italian pasta, with full range of pasta products for 40
years now. 'CRISPO PASTA', covers over 400 cities in Pakistan with a distribution network that spans the whole country and beyond. Initially, the company focused on international markets such as the Middle East, South-East Asia, Afghanistan and Bangladesh but when exports began showing a steady increase, international demand gave rise to local expansion. Following a subsequent boost in the local market, 'CRISPO PASTA' is geared up for expansion in order to meet the growing demand for products at home as well. Company is ensuring strict quality control with committed team management. MARKET SHARE 24. For better comprehension of Bake Parlor, its marketing strategy, product quality, positioning and placement, we present here a comparative analysis of its competitors. This part of the report illustrates the market share of different companies in the pasta food industry. 25. Market Share. The pasta food industry consists of only six major players. Out of these companies Bake Parlor is the market leader with a share of about 37%. The market share of all the companies in the sector due to new taste and different brands is difficult to conclude because of tough competition among themselves, but clearly availability of Bake Parlor across all the stores visited by us and being awarded satisfactory consumption level by the shop owners stands tut clearly amongst its competitors.
40 35 30 25 20 15 10 5 0 BAKE PARLOR KOLSON GOLDEN CRISPO TASTE CUISINE
CHAPTER II INFLUENCES ON CONSUMER BUYING BEHAVIOUR
WHY CONSUMERS BUY 1. Consumer purchases in order to satisfy his needs. Some of these needs are basic and is urged by everyone (e.g., food, shelter). After needs, individual requires wants or desires. Countries where the standard of living is very high, a large portion of the population’s income is spent on wants and desires rather than on basic needs. However, while a consumer is referred to is the actual buyer. While purchasing in the consumer market is not as complex as many people are involved in a purchase decision. For example, in planning for a family function the mother may make all arrangements and co ordinations but others in the family may have input on their choices, taste and particular dishes etc. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. WHAT INFLUENCES PURCHASING 2. The decision-making process for consumers is a simple affair. There are many
factors that can affect this process as a person works through the purchase decision. The
number of potential influences on consumer behaviour is limitless. However, marketers understand the KEY influences and make efforts to satisfy the consumer. INTERNAL INFLUENCES Perceptual Filter 3. Perception is how one experiences the world and stored inside ones conscious or
subconscious. Oftenly, ones reactions are based on these experiences, a process of perceptual filter. To one it is reality, though it does not mean it is an accurate reflection on what is real. Thus, perception is the way is filter stimuli (e.g., someone talking, reading a newspaper story) and then make some sense out of it. Perception has several steps.
• Exposure • Attention
– sensing a stimuli (e.g. seeing an ad) – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad) – assigning meaning to a stimuli (e.g., humorous ad for particular
– adding the meaning to one’s internal makeup (i.e., product has fun ads)
How these steps are eventually carried out depends on a person’s approach to learning. By learning changes to previous experiences changes, which in turn may affect how they act. For instance, one person may be able to focus very strongly on a certain advertisement and be able to retain the information after being exposed only one time while another person may need to be exposed to the same advertisement many a times before he/she even recognizes what it is. Consumers are also more likely to retain information if a person has a strong interest in the stimuli. If a person is in need of new car they are more likely to pay attention to a new advertisement for a car while someone who does not need a car may need to see the advertisement many times before they recognize the brand of automobile. Knowledge 4. Knowledge is the sum of all information known by a person. It is the facts of the
world as he/she knows it and the depth of knowledge is a function of the breadth of worldly experiences and the strength of an individual’s long-term memory. Obviously what exists
as knowledge to an individual depends on how an individual’s perceptual filter makes sense of the information it is exposed to. Attitude 5. In simple terms attitude refers to what a person feels or believes about something.
Additionally, attitude may be reflected in how an individual acts based on his or her beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative attitude toward a particular issue it will take considerable effort to change what they believe to be true. Personality 6. An individual’s personality relates to perceived personal characteristics that are
consistently exhibited, especially when one acts in the presence of others. In most, but not in all, cases the behaviours one projects in a situation is similar to the behaviours a person exhibits in another situation. In this way personality is the sum of sensory experiences others get from experiencing a person (i.e., how one talks, reacts). While one’s personality is often interpreted by those we interact with, the person has their own vision of their personality, called Self Concept, which may or may not be the same has how others view us. Lifestyle 7. This influencing factor relates to the way we live through the activities we engage in by how we spend our time and money.
and interests we express. In simple terms, it is what we value out of life. Lifestyle is often determined Products and services are purchased to support consumers’ lifestyles. Roles 8. Roles represent the position we feel we should hold or others feel we should hold
when dealing in a group environment. These positions carry certain responsibilities yet it is important to understand that some of these responsibilities may, in fact, be perceived and not spelled out or even accepted by others. In support of their roles, consumers will make product choices that may vary depending on which role they are assuming. As illustration, a person who is responsible for selecting snack food for an office party his boss will attend
may choose higher quality products than he would choose when selecting snacks for his family. Motivation 9. Motivation relates to our desire to achieve a certain outcome. Many internal factors
can affect a customer’s desire to achieve a certain outcome but there are others also. For instance, when it comes to making purchase decisions customers’ motivation could be affected by such issues as financial position (e.g., Can I afford the purchase?), time constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my money’s worth?), and perceived risk (e.g., What happens if I make a bad decision?).
EXTERNAL INFLUENCES Culture 10. Consumer purchasing decisions are often affected by factors that are outside of their
control but have direct or indirect impact on how we live and what we consume. Culture represents the behavior, beliefs and, in many cases, the way we act learned by interacting or observing other members of society. In this way much of what we do is shared behavior, passed along from one member of society to another. Yet culture is a broad concept that, while of interest to marketers, is not nearly as important as understanding what occurs within smaller groups or Sub-Cultures to which we may also belong. Sub-cultures also have shared values but this occurs within smaller groups. For instance, sub-cultures exist where groups share similar values in terms of ethnicity, religious beliefs, geographic location, special interests and many others. Group Membership 11. In addition to cultural influences, consumers belong to many other groups with
which they share certain characteristics and it may influence their purchase decisions. Often these groups contain Opinion Leaders or others who have major influence on what the customer purchases. Some of the basic groups we may belong to include: a. Social Class – represents the social standing one has within a society based on such factors such as income level, education, occupation etc. b. Family – one’s family situation can have a strong effect on how purchase decisions are made. c. Reference groups – most consumers simultaneously belong to many other groups with which they are associated or, in some cases, feel the need to disassociate. Purchase Situation 12. A purchase decision can be strongly affected by the situation in which people may
find themselves. In general, a situation is the circumstances a person faces when making a purchase decision, such as the nature of their physical environment, their emotional 17
state, or time constraints. Not all situations are controllable, in such a case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitor’s product. TYPES OF CONSUMER PURCHASE DECISIONS 13. Consumers are faced with purchase decisions nearly every day. But not all decisions are alike. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. In general, consumers face four types of purchase decisions: a. Minor New Purchase These purchases represent something new to a
consumer but in the customer’s mind it is not a very important purchase in terms of need, money or other reasons (e.g., status within a group). b. Minor Re-Purchase These are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). c. Major New Purchase These purchases are the most difficult of all the
purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience of making these decisions. The consumer lacks confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.. d. Major Re-Purchase These purchase decisions are also important to the
consumer but he feels confident in making these decisions because of previous experience of purchasing the similar products. For marketers it is important to understand how consumers treat the purchase decisions. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both
situations at the same time; for some, the product is new, while other customers see the purchase as routine. The implication of buying behaviour for marketers is that different buying situations require different marketing efforts. 14. How Consumers Buy. This process is presented in a sequence of 5 steps as shown below.
However, whether a consumer will actually carryout each step depends on the type of purchase decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort is involved in making a purchase decision. In cases of routine, brand loyal purchases consumers may skip several steps in the purchasing process since they know exactly what they want allowing the consumer to move quickly through the steps. But for more complex decisions, such as Major New Purchases, the purchasing process can extend for days, weeks, months or longer. So in presenting these steps marketers should realize that, depending on the circumstances surrounding the purchase, the importance of each step may vary. Purchase Decision Steps 15. Need/Want/Desire is Recognized. In the first step the consumer has determined
that for some reason he/she is not satisfied (i.e., consumer’s perceived actual condition) and wants to improve his/her situation (i.e., consumer’s perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumer’s needs. Marketers are particularly good at this through advertising; in-store displays and even the intentional use of scent (e.g., perfume counters). At this stage the decision-making process may stall if the
consumer is not motivated to continue (see Motivation above). However, if the consumer does have the internal drive to satisfy the need they will continue to the next step. 16. Search for Information. Assuming consumers are motivated to satisfy his or her
need, they will next undertake a search for information on possible solutions. The sources used to acquire this information may be as simple as remembering information from past experience (i.e., memory) or the consumer may expend considerable effort to locate information from outside sources (e.g., Internet search, talk with others, etc.). How much effort the consumer directs toward searching depends on such factors as: the importance of satisfying the need, familiarity with available solutions, and the amount of time available to search. To appeal to consumers who are at the search stage, marketers should make efforts to ensure consumers can locate information related to their product. For example, for marketers whose customers rely on the Internet for information gathering, attaining high rankings in search engines has become a critical marketing objective. 17. Evaluate Options. Consumers’ search efforts may result in a set of options from
which a choice can be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of possible solutions to their needs (i.e., product types) while at level two the consumer may be evaluating particular products (i.e., brands) within each solution. For example, a consumer who needs to replace a television has multiple solutions to choose from such as plasma, LCD and CRT televisions. Within each solution type will be multiple brands from which to choose. Marketers need to understand how consumers evaluate product options and why some products are included while others are not. Most importantly, marketers must determine which criteria consumers are using in their selection of possible options and how each criterion is evaluated. Returning to the television example, marketing tactics will be most effective when the marketer can tailor their efforts by knowing what benefits are most important to consumers when selecting options (e.g., picture quality, brand name, screen size, etc.) and then determine the order of importance of each benefit. 18. Purchase. In many cases the solution chosen by the consumer is the same as the
product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The "intended" purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the
point-of-purchase (e.g., store salesperson mentions a competitor’s offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumer’s reference group take a negative view of the purchase (e.g., friend is critical of purchase). Marketers whose product is most desirable to the consumer must make sure that the transaction goes smoothly. For example, Internet retailers have worked hard to prevent consumers from abandoning online purchase (i.e., online shopping carts) by streamlining the checkout process. For marketers whose product is not the consumer’s selected product, last chance marketing efforts may be worth exploring, such as offering incentives to store personnel to "talk up" their product at the checkout line. 19. After-Purchase Evaluation. Once the consumer has made the purchase they are
faced with an evaluation of the decision. If the product performs below the consumer’s expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme may result in the consumer returning the product while in less extreme situations the consumer will retain the purchased item but may take a negative view of the product. Such evaluations are more likely to occur in cases of expensive or highly important purchases. To help ease the concerns consumers have with their purchase evaluation, marketers need to be receptive and even encourage consumer contact. Customer service centers and follow-up market research are useful tools in helping to address purchasers’ concerns.
1. SELECTION OF STORES. In order to find the answers to questionnaire for
selected areas which are densely populated and having a blend of people from all income levels, education, age and families can be found.
S NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
MARKET/STORE METRO STOP SHOP SHAH TAJ RAFIQ ORO MART CSD CITI SUPER ROHAIL SUPER STORE RISING SUN FINE STORE QUALITY SUPER STORE AYAN BAKERS SAFEWAY MART ISLAMABAD ASKARI 14 NEW LALAZAR LALKURTI ADIALA LALKURTI SADAR
SATELLITE TOWN CHAKLALA III WESTRIDGE MUREE ROAD ADIALA ADIALA SHAMSABAD GULRAIZ TOWN
CHARACTERISTICS OF A TYPICAL BUYER. During our survey we came across
many types of buyers. Buyers who were having typical buying behaviour as they are aware of their purchasing power and needs. Therefore, these buyers consumed less time in deciding their real requirements. However, few have shown interest in buying by going around and reviewing /comparing various similar products. A handful number of buyers were found looking for nutrientional values and price negotiation etc. a. Habitual Buyers. Most of the buyers of this type were women. These
buyers were not involved in price negotiations and decision making to finalize their intended buying. They were from middle income group and were mostly house wives with little or less education. Probable reason for selection of macaronis from Bake Parlor seems to be satisfying their children’s needs/appetite. Reason of awareness seems to be influence by TV promotional cooking programme and the packaging. While price or comparison with similar products were not done by this group. b. Variety Seekers. A number of families we observed were not very sure at the time of buying macaronis. Most tended to buy Maggi noodles instead of buying macaronis of Bake Parlor. However, a large number of buyers were found switching over to new tastes or found pressurized to buy the macaronis either due to their involvement in watching TV promotional cooking show or compelled to do so for their children. A large variety within Bake Parlor macaronis also left some buyers to make up their mind to which taste/variety they needed. c. Impulsive Buying . During the course of survey a large number of middle and few from low middle class were found doing impulse buying. Macaronis may not be a taste / lovely food item in these families but by merely finding it attractive or due to their perception we saw that they did impulse buying.
Brand Loyal Buyers. Bake Parlor is getting popular day by day which is evident from the response from retailers. It has been only possible because of repeated sales and ensuring quality by the company.
OBSERVATIONS AND CONCLUSIONS. Basing on the field survey we may
summarize conclusions as follows:a. Promotion of Bake Parlor is effective but not regular. An innovative promotion addressing/influencing for urban society and a separate campaign for rural areas is a missing link. b. Products of Bake Parlor are stacked approriately in all the stores less local shops of Mohallah. Most retailers placed at eye level which also is the buy level. c. Customer were well aware of product location / store environment and easily approached the Bake Parlor products. d. Generally it was observed that customers had plenty of time available and their desire to buy this particular product was evident because of time spent on that particular shelf. e. Few educated and concious customers were found comparing the product price, brand with other similar products stacked at the same shelf. f. Behaviour of store keeper/salesmen and environment also effects the buying process. However in this case shop keepers or salesmen were not found keen in assisting the customers to reach to their final decisions in making the purchases of this particular brand. g. Serious buyers of grocery products have different economic characteristics than casual buyers or impulsive buyers.
Customers of middle class perhaps buy the macaronis to secure their children or present it during lunch/dinners.These buyers are concious of health/ diet as well.
No as the loyal to Bake Parlor is growing but their appearance or income level has been found common to others who exhibit low degree of brand loyalty.
The consumers are exposed to the product innovation and accordingly their interest in the product has increased because of high quality and attractive packaging.
consumer perceives about product as a high quality, pure and full of
energy and feels satisfied.. His/her previous experience of the product has an important role in building his/her perception . l. Information about the product has not been transpired effectively because the exposure to mass media campaign in not so regular and also not addressing to all segments. However in this case, mere positioning in the store has brought knowledge of this product to most of the customers. m. A price sensitive segment consistently prefer the low price item rather than randomly switching between high and low priced brands. Since all the similar brands were available at compatible prices, therefore switching to other products is easy. However those customers who consider satisfaction because of quality will do repeated purchases and in this case, those who are quality conscious are becoming brand loyals. n. Generally regular customers are visiting to the selected stores and customers have fair knowledge about location of the products and they have sufficient time available for in-store browsing.
CHAPTER IV ANALYSIS
SWOT ANALYSIS (ISSUES AND OPPORTUNITIES) 1. STRENGTHS a. Italian Foods. Bake Parlor are the market leaders of Italian food products, which has been launched by Kolson for quite a long time and for the first time in Pakistan. b. Price. Company has introduced their products on a competitive price strategy. The product is at the growth stage and possesses a huge potential. c. Strong distribution channels . They have timely and effective distribution network. d. Market Leader. Bake Parlor has a market share of 37% in the market. The product is well accepted and consequently has a tremendous take off. e. Strong consumer perception. More and more people are now shifting to eat pasta and macaronis. 2. WEAKNESSES a. Promotion. Huge capital investment will be required for aggressive promotion. b. 3. Competition. Low differentiation among competing brands. With their expansion plan and capacity. Company can enter
into product mix, which can save them from the declining phase.
a. b. c. d.
Already built in market for wide range of Italian food products and also other products made of wheat. People always resist buying new product and new brand. Competitor’s offensive strategy especially Crispo can give them tough time. Law and order situations, shortage of energy, rivalry between political groups at Karachi can affect smooth running of business as its plant/unit is located at Karachi.
Positioning product name in consumers’ mind across urban and rural areas amongst all income groups and demographic cultures would be expensive through promotion. This will be a major challenge to widen their profitability
MARKET RESEARCH 5. . After conducting the research, we learnt that there is a potential market for these products as people who are quality conscious, desires to experience new tastes / cuisines, wants to do instant cooking and lowering their dependence on bread due to health consciousness are the target consumers which are still untapped. Apparently basic reason is that financial outlays all competitors are not sound. Promotional ad of all competitors including Bake Parlor are not repeated / appear on print and visual media. 6. Consumer Analysis. a. b. Bake Parlor is being preferred by its target market due to its prime quality and purity. Most of the consumers perceived the products of Bake Parlor bother about the price tag. c. Though during our survey we have experienced that store keepers have placed the similar products within same shelf and prices had only fractional difference. d e. Variety of macaronis in shape and taste is making the real difference over the competitors. Sale period /time has been varying but interestingly mostly linked with the food timings. as of high quality product; therefore they were found not to waste time on selection or
Most consumers were from low and middle income level group. As far as their education level is concerned most of them had been apparently educated. Some had been involved critically and found reading contents etc to see the benefits/recipe.
Marketing Mix a. Product. All products of Bake Parlor is the largest selling brand in Rawalpindi zon. The brand commands consumer trust as the best quality of Italian food is available in the market. b. Product Features. All product offered by the company had good nutritional value and represent purity from its logo and information displayed on the packaging. c. Customer Benefits. Company offers a value to its consumer through its quality and purity. This quality and purity is hall amrk of all its products. d. Packaging. Complete range of Bake Parlor are available in the attractive packs of in box packing and sachet packing. The brand strength of Bake Parlor is based on flavors. e. Price. The price competition is being faced with the others competitors .
Retail, trade prices and the discounts offered are uniform and same all over the Pakistan
CHAPTER V RECOMMENDATIONS
In this chapter the team would suggest some recommendations to company to adopt more successful operation . a. In order to have competitive prices company should bring the prices of products to the acceptance level of all income level. To retain its end consumers company must cut short the cash discounts of its distributors/retailers and compensate its end consumers b. Since a huge portion of the population live in rural areas, therefore this market may also be tapped. Generally alein foods and tastes are not accepted in the country rural side but company should expand their target market also towards the rural people. They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness . c. Because Bake Palor has variety of macaronis types to be cooked with or without mixing with other ingradients. Company can increase their sales to bring ready to cook macaronis also. d. Children have a huge say in shopping so they should also promote the product to children like maggi noodles etc. e. Company needs to bring more attention towards promotion through media and holding awareness campaigning, inducing public about the advatanges of eating nutritinal foods and also focus on savings they will have in terms of money and efforts.
The Italian food industry of Pakistan consists of a few producers in the industry. The demand for this product is very much vulnerable in terms of pricing. Bake Parlor is providing range of macaronis at a price which is affordable to most of the people in the country. Macaronis are an uprising product in the country as a greater portion of the population, both male and female, are now getting more health conscious. As a national company Bake Parlor have done a comprehensive promotional activities since this kind of food is not a generally eaten /taste amongst masses, has been able to penetrate the market. Different tastes, different sizes and packaging, international standard and high quality design, products has been highly acceptable amongst the buyers. It has attracted the buyers and is amking the differrence. Company’s distribution process is highly efficient. Its promotional activities, like the cooking show on TV has been a milestone in attracting a huge number of customers. Our study has brought forward interesting results about consumer behaviour . Generally , a good promotional ad, rightly placing of a product and attractive price can influence the buying behaviour, offcourse, internal factors have greater role in the decision making process.
Socio Economic Clusters A B C D E Income High Income Upper Mid Level Lower Middle Low Middle Level Income Income Income Income Education High Level of Educated Educated Educated Very Low Education Slightly Less Slightly Slightly Less Level of than Cluster Less than than Cluster Literacy A Cluster B C Table 1 Socio Economic Cluster Segmentation
Brand BAKE PARLOR GOLDEN CRISPO KOLSON TASTE CUISINE
AVAILABILITY ALL OVER ALL OVER OCCASIONALLY LESS AVAILABLE LESS AVAILABLE
PRICE COMPATIBLE COMPATIBLE LESS PRICES COMPATIBLE COMPATIBLE
PROMOTION GOOD SATISFACTORY SATISFACTORY NO AD NO AD
Table 2 Comparative scenario
No . 1 2 3 4 5 Company Market Share 37 10 23 10 10 100%
BAKE PARLOR GOLDEN CRISPO KOLSON TASTE CUISINE
Table 3 Estimated Market Share .
QUEST IONAIRE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. How product of Bake Parlor is stacked in the store? How do customer approaches the Bake Parlor? Is customer is well aware of product What amount of time is available to the customer and what is desire to buy this Do customer compare the product price, brand and compare it with other similar How does the behaviour of store keeper/salesmen and environment effect the Do serious buyers of a grocery product have different economic characteristics than Who buys the macaronis and why? Describe characteristics of the buyer. Are customers who exhibit a high degree of brand loyalty in a product category In what way are the characteristics of customers who tend to purchase a product at The consumers are exposed to the product innovation or consumers How does a consumer perceives about product ? What is the previous experience with the product, and how does information about How consumer motivation and decision strategies differ between products that differ How the products of Bake Parlor is best positioned. Is consumer a price sensitive and behave differently from others. A price sensitive segment should consistently prefer the low price item rather than To what extent explain store knowledge, perceived time available, and in-store are not
location and store environment? particular product? products? buying process? casual buyers?
different than those exhibiting less loyalty? a low cost per unit different from those who pay higher prices? interested in the product.
the product acquired from others, and what is the level of exposure to mass media? in their level of importance or interest that they entail for the consumer.
randomly switching between high and low priced brands. browsing the impulse buying behavior?
• • • • •
WWW. CRISPO.PK.COM WWW.GOLDENFOODS.PK.COM WWW.KOLSON.PK.COM WWW.PRIMEIRGROUPSMS..PK.COM (BAKE PARLOR) “CONSUMER BEHAVIOR”, BY HAWKINS, BEST, CONEY, MCGRAW HILL, (7TH WWW.WIKIPEDIA.COM WWW.SNIPURL.COM WWW.PAKISTANMBA.COM WWW.TOCDOC.COM WWW.IBSCDC.ORG PRINCIPLE OF MARKETING,11E, BY PHILPH KOTLER
• • • • • •