You are on page 1of 35

A

FIELD SURVEY REPORT


ON
CONSUMER BUYING BEHAVIOUR
FOR
MACARONIS
OF
BAKE PARLOR

SUBMITTED BY SUBMITTED TO
GROUP NUMBER 4 Mr Waqar Ahmed Awan

ARMY PUBLIC COLLEGE FOR MANAGEMENT SCIENCES


AFFILIATED TO NUML ISLAMABAD

1
ACKNOWLEDGEMENT

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. Roll No 1600017 Naveed Haider Malik
b. Roll No 1600038 Zafar Masood
c. Roll No 1600011 Tanvir Ullah Qureshi
d. Roll No 1600054 Waseem Almas
e. Roll No 1600043 Usman Tariq

2
EXECUTIVE SUMMARY

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.

3
TABLE OF CONTENTS

SR NO. PARTICULARS PAGE NO

CHAPTER I

1. AIM AND OBJECTIVES OF STUDY 5


OVERVIEW OF BAKE PARLOR COMPANY, ITS BRAND
2. 6-11
POSITIONING AND HISTORY
3. COMPETITORS AND THEIR MALLAT SHARE 12-13

CHAPTER II

4. CONSUMER BUYING BEHAVIOUR 14

5. INTERNAL FACTORS 15-16

6. EXTERNAL FACTORS 17-18


7. DECISION MAKING PROCESS 19-22
CHAPTER III

8. LIST OF STORES AND SELECTION CRITERIA 23

9. CHARACTERISTICS OF A TYPICAL BUYER 23

10. OBSERVATIONS AND CONCLUSIONS 24-25

CHAPTER IV

11. ANALYSIS 26-28

CHAPTER V

12. RECOMMENDATIONS 29

13. CONCLUSION 30

CHAPTER I

4
AIM AND OBJECTIVES

1. AIM. To study the buyer’s behavior to enable the marketer's to sell effectively the
Bake Parlor products.
2. OBJECTIVES
a. To identify segment of society who prefer to buy Italian Food products.
b. To identify the influence of different characteristics/features of macaronis on
consumers in different segments.(i.e) families, business persons, students
and children.
c. To find out why consumer prefer Bake Parlor macaronis, particular brand?
d. Which are the factors that influence and motivate to buy the preferred brand
food item?
e. 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. To highlight the impact, advertisement on
consumers in different Age Groups, Income Groups and by professions.
g. To recommend a suitable design for an Effective Marketing Mix for its target
Customers.

5
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 co-
ordinate 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."

6
6. 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. Products
• Cholesterol Free Italian Macaroni
• Delicious fruity bun
• Spicy sauces and Ketchups
• Sumptuous Punjabi Vermicelli
• Fresh white flour for hot chappatis

8. 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.

7
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. (PRODUCT)

• Sold in the right place. (PLACE)

• At the right price. (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
• African Spice Macaroni
b. Delicious fruity bun
c. Spicy sauces and Ketchups
d. Punjabi Vermicelli
e. Fresh white flour for hot chappatis

11. 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

9
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. Competition Pricing. They have set a price which is competitive when


compared with competitors.
b. Product Line Pricing. Priced different products within the same product
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. Bundle Pricing. The company bundles a group of products at a reduced
price when providing family packs.
d. Value Pricing. They have also used value based pricing.
17. 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

10
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
convenient place i.e eye level is the buy level’. This type of distribution helps when
products are categorized as low involvement of the customer and where customer looks
for location convenience.

19. Promotion. Promotion includes all of the techniques that a company uses to
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 AAB TO SABB HI KHATE
HAIN campaign.

COMPETITORS

20. Kolson. It is based at Karachi. Pioneer food manufacturing and processing


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).

11
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.

12
40
35
30
BAKE PARLOR
25
KOLSON
20
GOLDEN
15
10 CRISPO
5 TASTE CUISINE
0

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

13
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 – sensing a stimuli (e.g. seeing an ad)


• Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)
• Awareness – assigning meaning to a stimuli (e.g., humorous ad for particular
product)
• Retention – 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

14
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
and interests we express. In simple terms, it is what we value out of life. Lifestyle is often
determined by how we spend our time and money.
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

15
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?).

16
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

18
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

19
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

20
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.

21
CHAPTER III

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 MARKET/STORE LOCATION

1. METRO ISLAMABAD
2. STOP SHOP ASKARI 14
3. SHAH TAJ NEW LALAZAR
4. RAFIQ LALKURTI
5. ORO MART ADIALA
6. CSD LALKURTI
7. CITI SUPER SADAR
8. ROHAIL SATELLITE TOWN
9. SUPER STORE CHAKLALA III
10. RISING SUN WESTRIDGE
11. FINE STORE MUREE ROAD
12. QUALITY SUPER STORE ADIALA
13. AYAN BAKERS ADIALA
14. SAFEWAY SHAMSABAD
15. MART GULRAIZ TOWN

22
2. 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.

23
d. 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.

3. 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.

24
h. 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.

i. 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.

j. The consumers are exposed to the product innovation and accordingly their
interest in the product has increased because of high quality and attractive
packaging.

k. A 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.

25
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. Competition. Low differentiation among competing brands.

3. OPPORTUNITIES. With their expansion plan and capacity. Company can enter
into product mix, which can save them from the declining phase.

26
4. THREATS

27
a. Already built in market for wide range of Italian food products and also other
products made of wheat.
b. People always resist buying new product and new brand.
c. Competitor’s offensive strategy especially Crispo can give them tough time.
d. 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.
e. 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. Bake Parlor is being preferred by its target market due to its prime quality and
purity.
b. Most of the consumers perceived the products of Bake Parlor as of high
quality product; therefore they were found not to waste time on selection or
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 Variety of macaronis in shape and taste is making the real difference over the
competitors.
e. Sale period /time has been varying but interestingly mostly linked with the food
timings.

28
f. 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.  

7. 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

29
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.

30
CONCLUSION

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.

31
ANX 'A'

TABLES

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 AVAILABILITY PRICE PROMOTION


BAKE PARLOR ALL OVER COMPATIBLE GOOD
GOLDEN ALL OVER COMPATIBLE SATISFACTORY
CRISPO OCCASIONALLY LESS PRICES SATISFACTORY
KOLSON LESS AVAILABLE COMPATIBLE NO AD
TASTE CUISINE LESS AVAILABLE COMPATIBLE NO AD

Table 2 Comparative scenario

No Company Market Share


.
1 BAKE PARLOR 37
2 GOLDEN 10
3 CRISPO 23
4 KOLSON 10
5 10
TASTE CUISINE
100%
Table 3 Estimated Market Share .

32
ANX 'B'

QUEST IONAIRE
1. How product of Bake Parlor is stacked in the store?
2. How do customer approaches the Bake Parlor? Is customer is well aware of product
location and store environment?
3. What amount of time is available to the customer and what is desire to buy this
particular product?
4. Do customer compare the product price, brand and compare it with other similar
products?
5. How does the behaviour of store keeper/salesmen and environment effect the
buying process?
6. Do serious buyers of a grocery product have different economic characteristics than
casual buyers?
7. Who buys the macaronis and why? Describe characteristics of the buyer.
8. Are customers who exhibit a high degree of brand loyalty in a product category
different than those exhibiting less loyalty?
9. In what way are the characteristics of customers who tend to purchase a product at
a low cost per unit different from those who pay higher prices?
10. The consumers are exposed to the product innovation or consumers are not
interested in the product.
11. How does a consumer perceives about product ?
12. What is the previous experience with the product, and how does information about
the product acquired from others, and what is the level of exposure to mass media?
13. How consumer motivation and decision strategies differ between products that differ
in their level of importance or interest that they entail for the consumer.
14. How the products of Bake Parlor is best positioned.
15. Is consumer a price sensitive and behave differently from others.
16. A price sensitive segment should consistently prefer the low price item rather than
randomly switching between high and low priced brands.
17. To what extent explain store knowledge, perceived time available, and in-store
browsing the impulse buying behavior?

33
Bibliography

• 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
EDITION)
• WWW.WIKIPEDIA.COM
• WWW.SNIPURL.COM
• WWW.PAKISTANMBA.COM
• WWW.TOCDOC.COM
• WWW.IBSCDC.ORG
• PRINCIPLE OF MARKETING,11E, BY PHILPH KOTLER

34
35