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K&N’s: Health & Happiness for Pakistan

Case Study Analysis


Group Members:
Nashra Kashif BBA 152013
Marium Iftikhar BBA 152037
Maryam Aamir BBA 152027
Sonia Malik BBA 152021
Ahmed Azam BBA-152048
Hassan Shakeel BBA-152026

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Table of Contents
SYNOPSIS OF THE K&N’S: ...................................................................................................................... 1
INTRODUCTION BACKGROUND: .......................................................................................................... 2
BACKGROUND: ......................................................................................................................................... 2
ONE MAJOR PROBLEM: ........................................................................................................................... 2
Minor Problems ............................................................................................................................................ 3
Mission Statement Evaluation Matrix........................................................................................................... 5
CURRENT MISSION: ............................................................................................................................. 5
NEW MISSION: ....................................................................................................................................... 5
NEW VISION: .......................................................................................................................................... 5
OBJECTIVES ........................................................................................................................................... 6
STRAGTEGIES ........................................................................................................................................ 6
PESTEL Analysis ......................................................................................................................................... 8
Porter’s 5 force model ................................................................................................................................. 10
Identify the organization’s external opportunities and threats. ................................................................... 12
Construct an External Factor Evaluation (EFE) Matrix. ............................................................................. 13
EFE MATRIX ......................................................................................................................................... 13
Identify the organization’s internal strengths and weaknesses. .................................................................. 14
Construct an Internal Factor Evaluation (IFE) Matrix. ............................................................................... 15
IFE MATRIX .......................................................................................................................................... 15
Construct a Competitive Profile Matrix (CPM). ......................................................................................... 16
Boston Consulting Group (BCG) Matrix .................................................................................................... 17
Internal-External (IE) Matrix, ..................................................................................................................... 19
Grand Strategy Matrix ................................................................................................................................ 20
Quantitative Strategic Planning Matrix (QSPM) as appropriate. ................................................................ 22
Recommend specific strategies. ................................................................................................................. 23

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SYNOPSIS OF THE K&N’S:
Totally organized poultry try was made in 1964, usually known as K&N's (Khalil and Nushuba),
presently run by Adil k Sattar. They had foreseen $250million deals for 2011 even with horrendous
money related state in Pakistan. Presently at present they are proceeding searching for more open
doors in Arab Nations and different nations. Other than they have likewise perceived the
requirement for Halal Food in nations like USA and UK, the spots where a significant populace of
Muslims need halal meat. The association is totally vertically joined. Coordination’s were likewise
being claimed by organization somewhat, to be more cost capable. Case explains how capably
they made sense of holes in the market and how to fill those holes concurring the client wellbeing
needs. They presented wide scope of new items which were either not accessible in Pakistani
Market, for example, pieces, croquettes and burger patties or which were difficult to make at home
like tikka, barbecue Seek kabab. They were additionally blamed for not utilizing Halal courses in
the preparing of their nourishment, so K&N's discharged a narrative, on how the handling was
being done in Islamic manner, on their site which cleared this issue also. K&N's has compelling
new item improvement methodology which joins 4 stages. These four stages increment the
achievement probability of new item. K&N's simply focus on "Protected and Healthy Chicken".
They have their very own stores in. They additionally bolster their chicken stores even they were
demonstrated expensive at the outset since this thought offers Opportunity to profoundly
comprehend the buyer conduct and to enter in the market. They have additionally presented "THE
K&N's route club" to quicken their infiltration and urging their current clients to turn their most
faithful client.
K&N's appears to be quick to develop in remote markets as exceptionally fascinating details of
developing interest of Halal nourishment in US, UK and France for this reason Pakistan
government is additionally appears to be steady to assist them with becoming outside the nation.

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INTRODUCTION BACKGROUND:
The year 1964. Pakistan A youthful free country continuing onward Towards the fantasy.
Independence in nourishment generation. Lack of healthy sustenance stayed a significant issue and
one out of four youngsters passed on Before achieving the age of five. 80% of the sickly kids were
affected with malady brought about by protein. Nutrients and minerals Deficiency. Poultry
generation. The snappiest and most economical method for filling the protein hole was intended
to defeat unhealthiness patio poultry cultivating needs to graduate to a progressively proficient
level.
January 1964, a youngster Khalil Sattar, still a collection understudy. Has a Vision of Foresee a
need to build up a poultry ranch? His advantage drove him to begin a grill homestead of 1000
chicks. Little had he realized this rush was to turn into the establishment stone of K&N'S. This
was the straightforward, enlivened the nationalistic start of K&N's with a determined target of
giving a superior nourishment to wellbeing and satisfaction of the country.

BACKGROUND:
K&N's is the establishing column and reference point for Pakistan poultry industry-began in 1964
with a determined goal of giving better nourishment to wellbeing and satisfaction of the Nation.
Expanding on long periods of poultry aptitude, and a pledge to nourishment - security, K&N's
incorporated all poultry creation exercises under one umbrella to guarantee quality and sanitation
by overseeing and controlling all phases of generation.

ONE MAJOR PROBLEM:


The major problem of K&Ns - the founding pillar for Pakistan's Poultry Industry is whether a brand
like it should enter the international market of countries like United States United Kingdom and
France. The multinational brand has to have appropriate marketing skills and capitals to expand the
poultry operations outside the boundaries. K&Ns is concerned about whether it will be impractical to
be planning about such a project given the international challenges and political instability faced by
Pakistan since 2011.

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The leading retailer from Spain, El Corte Ingles who visited K&Ns Lahore, investigated and reported
to have found the brand working excellently as compared to any Western company operating in the
Poultry Industry throughout the markets. Although he was confident about the company’s
successfulness in foreign markets.

Minor Problems
On the contrary the minor problems that K&Ns deal with are of different scales. So, on a very basic
level it was obvious in the society that vast shifts were taking place and major changes were observed.
Women were going from being Housemakers to being working women, with lesser time for the home
and cooking. Which eventually meant more buying of ready-to-make items and easy to go with
products. Thus K&Ns had immense space to invest and make their place in the growing phase of the
market. However, the brand found wet-market chicken sellers coming in the way of their growth. So,
to make the chicken industry potentially grow with them was a challenge while trying to increase
their market share against wet-market chicken.

On the other hand, as soon as the OIE ban was lifted K&Ns had begun its trade with UAE and
neighboring countries. However, the threat of these country’s developing own local poultry industry
surrounded the brand. Additionally, Pakistan’s fluctuating inflation (chicken process) and labor
inefficiency despite of being cheap labor brings the danger of quality variations, along with the issue
of electricity unexpected shortfalls’ and increasing diseases of birds. It has become necessary to
manage quality control for chicken breeding to avoid diseases and to provide them with best feed.

Furthermore, K&Ns was liable to increase customer awareness regarding safe chicken and not drive
them away for chicken consumption. Because of the general concept built with local people hat
chicken will only be halal if slaughtered rightly in front of them thus customers had to be made aware
of how a factory-made chicken could be halal as well. Also, K&Ns mentioned the problem of its
products not being on display within the freezer, but the fridge being filled with various other
products. So, they planned to open their retail store which was so difficult to operate due to the lack
of proper retail trained workers.

Lastly, the entry of Carrefour in the retail shop market caused K&Ns and Carrefour to become indirect
competitors. Whereas, the direct competitors included Menu, Mon Salwa and Dawn. Challenges of
the brand trying to sustain their sales in Karachi while challenging trading environment. Which means

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that they did not had the proper retail environment in the early stages having space issues and power
cuts impacting refrigeration.

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Mission Statement Evaluation Matrix

CURRENT MISSION:
‘‘To provide better nutrition for health and happiness of the nation’’.

I II III IV V VI VII VIII IX Total


out
of 9
Customers Product Market Technological Concern for Philosophy Self- Concern Employees
and Survival, Concept for
Services Growth and Public
Profitability Image
 ✓    ✓ ✓   3
K&Ns

NEW MISSION:
Our mission is to be the global leader in this highly competitive world by providing healthy and
nutritious chicken by using innovative technology and rapid improvements in our products and to
give value to our customers, stakeholders and employees and also gratifying our environmental
responsibilities.

NEW VISION:
Providing Halal and Quality chicken for Health and Happiness of customers

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OBJECTIVES
• To become brand and market trailblazer
• To work with Honesty and maintain performance
• To be Persistent and Passionate about their aim to deliver safe chicken
• Aspire to being enhancements
• Expand the product line/variety

STRAGTEGIES
K&Ns is a multinational company who has made production and distribution of healthy chicken and
chicken products available to all. Safe from diseases and unhealthiness. Not putting the entire chicken meat
industry at stake, they have safely portrayed themselves as the safest and healthiest chicken products sellers.
The have used different strategies to get to this point.

They are the only ones that are fully integrated backwards generating funds for themselves, investing in
producing and growing of their own boilers. This helps them reduce their overhead expenses, and becoming
a price leader. In a situation where they were in the aspiration to grow them effectively used their managerial
skills, unique competitive advantages and policies to grab and exploit international opportunities.

To keep their boilers safe from bird diseases K&Ns has devoted a lot of their attention and money in the
boiler raising equipment and procedures. They developed modern designed based poultry houses with
implanted automatic systems for ventilation, feeding, watering and maintaining temperatures. Also, the
chickens are kept far from the area their parents live on. Apart from that the brand has also financed and
developed a self-producing system of food preparing, which prepares boilers’ feed and a research
center/laboratory that is responsible for feed’s and chicken tests, in order to avoid the infections.

Not just this the have developed different operational strategies to sustain healthy chickens for the
accomplishment of their mission of the business. The chickens are kept in trucks while being transported
that have embedded temperature controlling systems built in that are supported by either running of engine
or being charged by plugging in. The boilers are slaughtered strictly as per Sharia law to not loose customer
attention.

Their strategy to attract customers to buy their chicken is products with value addition and innovation. To
make sure this happens they first introduced creative and convenient chicken items like croquettes. After
which they worked on edibles such as seekh kebabs that are not easy to make at home and people usually

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eat them from different food chains. K&Ns made it easy for women to cook difficult foods like these for
festivals. And finally, they tried to familiarize their product more in the households of locals.

Locals always have this fear of the chicken not been halal slaughtered in factories and K&Ns fought this
misconception by including proper chicken slaughtering videos and certifications on their website as well
as on the TV in their retail stores. Moreover, to promote the product line and corporate mission statement
to the customers the brand has penetrated the market aggressively by opening a retail store. To manage the
store successfully, the owner decided to locate stored near the consumer markets and residence. As another
strategy to maintain operations and finished goods defect free, the company decided to give freezers to the
store customers of their, which will in return provide them with better insights of customer behavior to help
with better marketing strategy development.

The stress varied in sizes and platform levels but had powerful insides and outsides, with testing and product
usage demo facility. Additionally, to overcome the absence of trained workers for the store. K&Ns
developed a magnificent Human Resource strategy according to which they established job description and
job specification handbooks that helped them train the staff exclusively. Also, the stores had camera
surveillance regulated by the Lahore head branch and the owner directly with look into matters of customer
dissatisfaction.

Furthermore, to retain its existing customers and grow a strong customer base the brand announced the
Loyalty package. Where points were allotted for purchases and discounts were given. This turned into
victory and cultivated in favor of for the brand.

Finally, for Finance strategies, company reinvested share of its turnover in advertising overheads. It
capitalized the branding on Television, print and outdoor media. However, their target market is middle
class people. They have retained customers 40% from Pakistan and 20% from International Domestic
markets. 20% comes from non-franchise and rest is derived from its own retail stores.

Lastly, the company has also provided temperature-controlled trucks for transportation all over the country
to fight electricity shortages. They worked with a company to build long hours working freezer that would
keep things frosted even after hours of no electricity. And later placed those freezers in their customer
stores.

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PESTEL Analysis

Political:
• Future political conflicts can affect the international trade agreement to different countries
which K&N’s exports.
• Unstable political conditions like strikes influence the business of the country which leads
to sales reduction.

Economic:
• Chicken price fluctuations were very common in the year 2011.
• Volatile demand for chicken
• Uncertain regulatory tax environment in Pakistan
• The general trade agreement between Pakistan and Malaysia in 2009 increased the number
of imports of finished poultry products
• Challenging trade environment has a major impact on consumer demand

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Social:
• Due to religious issues people had doubts about the transparency in Halal standard of the
poultry industry and they were not sure about the birds being zabiha or non-zabiha.
• Consumers tend to purchase chicken from wet market

Technological:
• K&N’s have their own refrigerated trucks that deliver their products all over the country
to the retail stores.
• K&N’s used their modern poultry houses with automated feeding, advanced temperature,
watering system and ventilation control system to grow their chickens

Environmental:
• Environmental challenges like serious diseases such as bird flu and salmonella in broilers
are very common.
• Poor quality standards of chicken in Pakistan

Legal:
• The export of Pakistani chicken was banned by OIE (World Organization for Animal
Health) because of the concern for diseases like bird flu. In 2008 the ban was lifted but
Pakistan faced problems in reactivating the poultry export.

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Porter’s 5 force model

Rivalry among Existing Competitors:


One of the biggest competitions that K&N’s face is the wet market. Brands like Mon Salwa, Dawn
and Menu also aggressively compete with K&N’s. Successful promotion campaigns by menu
foods and number of retail stores of Menu located in Pakistan causes rivalry between the two
brands. Mon Salwa collaboration with Masala TV and Food fusion also creates huge competition
for K&N’s.

Threat of New Market Entrants:


Every year companies attempt to enter chicken and value-added chicken products market. New
companies like Sobramesa are threat to K&N’s.

Threat of Substitutes:
Beef, vegetables and fish is a substitute to poultry. Frozen beef products, frozen vegetables and
frozen fish is a huge substitute to the value-added chicken market. Brands like Mon Salwa, Dawn

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and Menu have a huge line product line. Menu offers sea food like finger fish and fish biscuits and
also vegetable products like potato cutlet, potato samosas, vegetable samosas etc. Mon Salwa also
offers fries and aaloo tikki

Bargaining Power of Suppliers:


There is no as such power of suppliers to bargain because K&N’s produces its own chicken.

Bargaining Power of Buyers:


K&N’s exports poultry to countries like UAE. The buyers of K&N’s have bargaining power
because companies like Mon Salwa exports to 9 different countries. So, these buyers can easily
switch brands like Mon Salwa and Menu if they offer better price.

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Identify the organization’s external opportunities and threats.
Opportunities
• The Number of working women is increasing Pakistan
• Demand for convenience products is growing
• Muslims of UK, US and France who are in minority and have higher purchasing power
than the Asians Muslims, face problems finding Halal chicken and chicken products
• A significant part of the food service sector is the wedding catering business which has
been growing efficiently
• The upper and upper middle class is also growing 10% of the population
• Adjacent countries like Saudi Arabia, Oman and Kuwait have a huge market for poultry
products so they are large importers

Threats
• The wet market is still a major threat to K&N’s because of the high number of sales
• Competition from imported chicken is a treat to the industry as the government has allowed
foreign retailers a 100% ownership
• High Inflation is leading to high increased COGS
• Decline in number of exports due to governments investing for the production of poultry
in their own domestic industries
• Power outrage in country
• Challenging trade environment has a major impact on consumer demand

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Construct an External Factor Evaluation (EFE) Matrix.

EFE MATRIX
Opportunities Weight Rating Weighted
Average Score
The number of working women is increasing in Pakistan 0.06 2 0.12
Demand for convenience products is growing 0.08 3 0.24
Muslims of UK, US and France who are in minority and have 0.10 4 0.4
higher purchasing power than the Asians Muslims, face problems
finding Halal chicken and chicken products
A significant part of the food service sector is the wedding 0.08 3 0.24
catering business which has been growing efficiently
The upper and upper middle class is also growing 10% of the 0.08 1 0.08
population
Adjacent countries like Saudi Arabia, Oman and Kuwait have a 0.10 3 0.3
huge market for poultry products so they are large importers.
Threats
The wet market is still a major threat to K&N’s because of the 0.09 4 0.36
high number of sales
Competition from imported chicken is a treat to the industry as 0.08 3 0.24
the government has allowed foreign retailers a 100% ownership
High Inflation is leading to high increased COGS 0.08 3 0.24

Decline in number of exports due to governments investing for 0.08 2 0.16


the production of poultry in their own domestic industries
Power outrage in country 0.09 3 0.27

Challenging trade environment has a major impact on consumer 0.08 2 0.16


demand
Total 1 1 2.81

The score for EFE Matrix is 2.81 (above average) which shows that company is capitalizing on its
opportunities and are trying to minimize the threats.

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Identify the organization’s internal strengths and weaknesses.
Strengths
• Market leader for processed chicken products
• Strong brand reputation for product quality and food safety
• Reliable delivery of safe and healthy chicken
• Strong brand recognition by consumers
• Halal food items
• Brand loyalty
• Distinctive edge from producing and delivering restaurant needed products like KFC and
Nando’s
• Use of refrigerated trucks owned by the brand
• One of the country’s largest producers of broiler-chick

Weaknesses
• Premium prices. Prices of K&Ns products are 8% higher than the products of its
competitors.
• Retailer franchises setting up their own discount pricing strategy on K&Ns products
causing a disruption in the brand’s policy of maintaining same price across the region
• Non availability of chilled meat facility
• Increased customer dissatisfaction due to small shop keepers filling refrigerators that are
provided by K&Ns with other products

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Construct an Internal Factor Evaluation (IFE) Matrix.
IFE MATRIX

Strengths Weight Rating Score


Market leader for processed chicken products 0.10 4 0.4
Strong brand reputation for product quality and food safety 0.08 4 0.32
Reliable delivery of safe and healthy chicken 0.08 3 0.24
Strong brand recognition by consumers 0.07 3 0.21
Halal food items 0.08 4 0.32

Brand loyalty 0.07 4 0.28


Distinctive edge by producing and delivering restaurant needed products 0.06 3 0.18
like KFC and Nando’s
Use of refrigerated trucks owned by the brand 0.08 4 0.32
One of the country’s largest producers of broiler-chick 0.09 3 0.27

Weaknesses
Premium prices. Prices of K&Ns products are 8% higher than its 0.07 2 0.14
competitors
Retailer franchises setting up their own discount pricing strategy on 0.08 1 0.08
K&Ns products causing a disruption in the brand’s policy of maintaining
same price across the region
Non availability of chilled meat facility 0.08 2 0.16
Increased customer dissatisfaction due to small shop keepers filling 0.06 1 0.06
refrigerators that are provided by K&Ns with other products

Total 1 2.98

The score of IFE Matrix is above average which shows that the company is performing well but it needs to
overcome their weaknesses as well in order to perform better.

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Construct a Competitive Profile Matrix (CPM).

Critical Success Factors K&N’S Mon Salwa Menu Dawn Foods


Weight Rating score Rating Score Rating Score Rating Score
Brand Image or
reputation 0.17 4 0.68 3 0.51 3 0.51 2 0.34

Product range
0.12 3 0.48 2 0.24 4 0.48 2 0.24
Retention of
Customers 0.08 4 0.32 1 0.08 3 0.24 2 0.16
Online Presence
0.12 4 0.48 1 0.12 4 0.48 3 0.36
Successful
Promotions 0.07 3 0.21 1 0.07 4 0.28 3 0.21
Effective distribution
channels 0.11 4 0.44 2 0.22 4 0.44 3 0.33
Market share
0.06 4 0.24 2 0.12 3 0.18 3 0.18
Global expansion
0.05 3 0.15 3 0.15 3 0.15 2 0.1
Quality of the
products 0.11 4 0.44 4 0.44 3 0.33 3 0.33
Financial position
0.11 3 0.33 2 0.22 3 0.33 3 0.33

TOTAL 1 3.77 2.17 3.42 2.58

According to the competitive profile matrix K&N’s performance is much better than its competitors. They
got a total score of 3.77 and they are giving value to their customers and are offering products according to
their preferences, way better than their competitors which include; (MENU, DAWN foods, and MON
SALWA). However, they are in a good competitive but there is still room for improvement.

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Boston Consulting Group (BCG) Matrix
BCG Matrix

Medium
High Low
.50
1.0 0.0

Market growth
High

+10
Market Share

0.7

Low

-10

Market Share = 0.7 (70%)

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By the above analysis it was portrayed that K&N’s position is in Quadrant II (Stars) and reveals
that the organization can use opportunities for profitability and growth.

To grow further and grasp the opportunity for profitability the strategic choice the company can
use is intensive strategies which comprises of market penetration, product development, market
development or backward, forward or horizontal integration.

The best option to choose within the intensive strategies could be product development, the
company is already been successful in its price, promotion and backward, forward integration.

The company can use product development strategy by the development of Masala’s Packets. The
K&N’s has been known for its taste in their different products they offer such as Shami Kabab,
Seekh Kabab, Mughlai Tikka, Combo wings and many others. They segment the working women
who don’t have much time for cooking, but what about those women who prefer the taste of like
K&N’s but like to make it fresh or cook it themselves with the same taste of K&N’s? Offering
such Masala’s Packet like of Tender chicken, Chapli kabab and others could enlightened the
customers of K&N’s such as house wife who wished to win the heart of families by cooking
themselves. Since K&N’s have good brand equity and is the market leader for its taste and its
safety in their products, extending to this segment would enable their customers to purchase their
products.

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Internal-External (IE) Matrix,

IE MATRIX
IFE TOTAL WEIGHTED SCORES

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99


3.0 2.0 1.0

4.0
High
3.0

EFE TOTAL WEIGHTAGE SCORES


to
4.0 I II III
3.0

Mediu
m
2.0
to
2.99 IV VI
V
2.0

Low
1.0
to
1.99
1.0 VII VIII IX

IFE= 2.98
EFE= 2.81

The position of K&N’s in IE matrix is in Quadrant V, which means to hold and maintain for that it could
use the product development strategy to bring the new product in the same market to increase the growth
and profitability of the organization.

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Grand Strategy Matrix
Rapid Market Growth

Quadrant 2 Quadrant 1

Weak Strong
competitive competitive
position position

Quadrant 3 Quadrant 4

Slow Market Growth

As K&Ns falls in the first quadrant because of its fast market growth and strong competitive
position so, they should opt for the strategies that can make their position stronger and firmer in
this field and give them more competitive edge over their competitors. The strategies they can go
for are market penetration strategies, integrated strategies, and product development strategies.

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Strategies:
• They can go for horizontal integration by acquiring other company so they can become
market leading by reducing competition.
• They can also go for related diversification by adding new product-line as they already are
in strong market position.
• They should penetrate through the market by using innovative advertising strategies.
• They should go for new product development by using innovative technology to help them
increase their market share by making customers go for their products rather than going for
the competitor’s product.
• They should be opportunist and should research for entering in a new market as there is
opportunity for them to enter in US and UK market as there are Muslim minority living
there.

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Quantitative Strategic Planning Matrix (QSPM) as appropriate.

Market Market
QUANTITATIVE STRATEGIC PLANNING MATRIX Penetration Development
Key Factors Weight AS TAS AS TAS

Opportunities
1 The number of working women is increasing in Pakistan 0.06 - -
2 Demand for convenience products is growing 0.08 3 0.24 4 0.32
3 Muslims of UK, US and France who are in minority and have higher purchasing power than the
0.1 4 0.4 3 0.3
Asians Muslims, face problems finding Halal chicken and chicken products
4 A significant part of the food service sector is the wedding catering business which has been 0.08 2 0.16 1 0.08
growing efficiently
5 The upper and upper middle class is also growing 10% of the population 0.08 2 0.16 3 0.24
6 Adjacent countries like Saudi Arabia, Oman and Kuwait have a huge market for poultry 0.1 4 0.4 3 0.3
products so they are large importers.
Threats
1 The wet market is still a major threat to k&N’s because of the high number of sales 0.09 4 0.36 3 0.27
2 Competition from imported chicken is a treat to the industry as the government has allowed
0.08 4 0.32 2 0.16
foreign retailers a 100% ownership
3 High Inflation is leading to high increased COGS 0.08 3 0.24 2 0.16
4 Decline in number of exports due to governments investing for the production of poultry in
0.08 3 0.24 1 0.08
their own domestic industries
5 Power outrage in country 0.09 - -
6 Challenging trade environment has a major impact on consumer demand 0.08 4 0.32 2 0.16
Strengths
1 Market leader for processed chicken products 0.1 - -
2 Strong brand reputation for product quality and food safety 0.08 - -
3 Reliable delivery of safe and healthy chicken 0.08 1 0.08 2 0.16
4 Strong brand recognition by consumers 0.07 1 0.07 3 0.21
5 Halal food items 0.08 2 0.16 4 0.32
6 Brand loyalty 0.07 2 0.14 3 0.21
7 Distinctive edge from producing and delivering restaurant needed products like KFC
0.06 3 0.18 2 0.12
and Nando’s
8 Use of refrigerated trucks owned by the brand 0.08 1 0.08 2 0.16
9 One of the country’s largest producers of broiler-chick 0.09 2 0.18 3 0.27
Weaknesses
1 Premium prices. Prices of K&Ns products are 8% higher than the products of its
0.07 4 0.28 3 0.21
competitors.
2 Retailer franchises setting up their own discount pricing strategy on K&Ns products
0.08 2 0.16 3 0.24
causing a disruption in the brand’s policy of maintaining same price across the region
3 Non availability of chilled meat facility 0.08 - -
4 Increased customer dissatisfaction due to small shop keepers filling refrigerators that
0.06 4 0.24 3 0.18
are provided by K&Ns with other products
Total 1 4.41 4.15

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Recommend specific strategies.

• They should properly research the trends and consumers preferences while entering a new
market and then take their decision.
• They should go for the market penetration techniques when entering UK and USA market
because they would be new in that market.
• They should hire expert employees to operate the highly tech machinery so there is no
inconvenience in the process part.
• They should carefully check the health of chicks for any diseases so this should not create
any disruption in their business.
• They should add new product line as they are market leader so they can take the risks and
can go for aggressive marketing.
• They should focus on customer preferences very sharply as their preferences change day
by day so they should value their customers by adapting to their preferences.
• They should go for horizontal integration and go for acquisition as they are in a strong
position so they should go for bold steps to remain at the top.
• They should franchise their name as they are in a strong position so they should enter in
the foreign market.

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