ACKNOWLEDGEMENT

We would like to extend our thanks to Ms. Shahnaz Meghani who conducted our Principles
of Marketing course for providing us the opportunity to practice, performing all that we had
studied during the semester. This has definitely been unique learning experience for us.
This course has helped a lot in accepting the theoretical concept and learning the practical
concept of Marketing. We are very thankful to her for her guidance and help which she has
extended throughout the course of the report. We are grateful to her for the valuable time
she had given us for this report in particular and for the overall learning of Marketing. We
are also indebted to Mr. Umar Sheikh, Marketing manager of Hilal Foods and Mr.Saad
Feroz, Brand Manger Hilal foods, who gave us their valuable time.

2|Page
 Letter of Transmittal

December 9, 2013

Ms. Shahnaz Meghani

Associate Professor,

Institute of Business Management,

Karachi.

Dear Ms. Shahnaz Meghani:

Our group is submitting the attached report entitled Marketing Plan of Hilal Special Kake for
your kind review and consideration.

This report presents a brief explanation of a Marketing Plan, overview of Hilal Foods,
Marketing Plan of Hilal Special Kake and recommendations to the concerned company’s
marketing practices.

We hope you find this report satisfactory. 

Sincerely yours students, 

Erum Saleem- MBA(16171)

Hina Urooj -MBA(15933)

Maha Gul-MBA(15550 )

Tajammul Siddiq -MBA( )

3|Page
 Table of Contents

Overview of the Company

Hilal’s Corporative objective............................................................................................................................... 5
Market Trend and Size of the market.................................................................................................................. 6
Entry of Hilal Special Kake................................................................................................................................... 7
Environmental Analysis....................................................................................................................................... 7
PEST Analysis (Macro Environment).................................................................................................................... 7
Micro Environment............................................................................................................................................. 8
COMPETITIVE ADVANTAGE................................................................................................................................. 9
BCG Matrix for Hilal Confectionery.................................................................................................................... 10
SWOT Analysis.................................................................................................................................................. 11
Research and Development............................................................................................................................... 12
Segment Profile................................................................................................................................................ 14
Targeting.......................................................................................................................................................... 14
Positioning........................................................................................................................................................ 14
Marketing Plan................................................................................................................................................. 16
Product............................................................................................................................................................. 16
Product Life Cycle.............................................................................................................................................. 17
Growth Strategies............................................................................................................................................. 18
Branding Strategies........................................................................................................................................... 19
Price................................................................................................................................................................. 20
Place................................................................................................................................................................. 21
Supply Chain..................................................................................................................................................... 22
Promotion........................................................................................................................................................ 23
Promotional Mix............................................................................................................................................... 23
Conclusion........................................................................................................................................................ 24
Recommendation.............................................................................................................................................. 24
References........................................................................................................................................................ 25

4|Page
Overview of the Company
Hilal Foods
Hilal is Pakistan’s No. 1 confectionery and cake manufacturers with its products exported to
over 20 countries around the world. They are dedicated to the art of producing fun,
innovative and delicious products for sweet lovers of all ages. Hilal’s products offer
tantalizing experiences that sparks the imagination in people who eat their candy. Of
course, this has been Hilal’s goal since their inception in 1957. Today, Hilal Candy continues
to make some of the best candy in Pakistan. Along with candies, they also help inspire kids
to be creative and dream up new worlds. Hilal products can be enjoyed by kids and adults
alike, and their products come in an array of flavors, shapes and sizes

Vision Statement of Hilal Foods

“To become a global food leader by spreading smiles through diversified hilal products”

Mission Statement of Hilal Foods

“As Pakistan’s leading Confectionery Company, our mission of giving you, “Reasons to
Smile” is to provide consumers with the best tasting, most delicious choices in a wide range
of confectionery and beverages for all occasions”-

Hilal’s Corporative objective

Hilal’s co-operative objectives is to expand its business in whole Pakistan and then to
capture a large International market. However they are still exporting few products through
distributors to different countries. They want that Hilal’s products can be enjoyed by kids
and adults alike. Hilal wants to give consumers a reason to smile.

5|Page
Market Trend and Size of the market
Hilal has one of the biggest market sizes among other confectionery makers in the country.
They are market leaders in an organized industry and comprises of more than 70% approx.
share of the market. The market for Confectionery in Pakistan increased between 2002-
2007, growing at an average annual rate of 7.3 %. This growing trend is giving opportunities
to Hilal to rise its baked product in the market.

Hilal Product Mix

Candies Chew Wafers Chocolat Powdere Jellies Cakes Chewin Pan
Toffees e d Drinks g Gum Masala’s
- -Rum -Short -Choco4 -Sunsip -Pizza - -Ding -Tulsi
Khoopra Pum Cut Lemo Specia Dong
Roll -Bar Bar pani -Jum l Kake -Raseeli
-Aamrus Jum -Fresh supari
-Rum -Chick -Sunsip -Cup Up
-Pan Pum Chick Thanda -Kacha Kake
Pasand Fruity Orange Aam -Froot
Roll -Kake Up
-Choran -Berry
Chatni Bites -Zoom

- -Egg -Chillax
Hajmool
a -Fish -Gumby

-Super -Mirch
sour Masala

- -Peach
Amrood
Funnu
-Milk y
Fils Teeth

-Minta -Mixed
Fruit
-Energic

6|Page
Entry of Hilal Special Kake

Hilal has been working as the leading of Pakistan since 1957. It had been offering candies,
chocolates, bubble gums, chewing gums, jellies, wafers, Chocolates, powdered drinks and
Pan Masala’s. In 2010, Ulker a Turkish confectionary launched Peki cakes. Hilal found the
gap between demand and supply of cakes in this particular category, and entered into the
market in 2010 with Hilal Special Kakes.

Marketing Plan Of Hilal Special Kake

Environmental Analysis

PEST Analysis (Macro Environment)

 Political & Legal Environment
Tax rates and tax structure are being set by government. Electricity prices, fuel and
petrol prices are also set by a government. It has a direct impact on Hilal’s Profit
margins. Increase in the tax rates, duties or electricity and petrol prices increases the
cost of production. Adjusting price of Hilal Special Kake is not possible for company;
it is difficult to take out one additional rupee after 10 for a 10 rupee product, so it
has to sacrifice the profit margins.
 Economic Environment
When poverty gets higher, these sorts of industries grow. In case of high inflation
value of money goes down. It makes more costly to import manufacturing
machineries and raw materials.
 Socio-Cultural Environment
In Pakistani culture social gatherings are more often. Most of the Middle class
families take tea in the evening. In social gatherings, at tea time and to serve guests
Hilal kake can be a better option.

7|Page
  Technological Environment
In today’s highly competitive environment it has become essential to equip with
technological advancement and automation. Hilal Kake has the state of art to get
difficult compositions. To keep items fresh and safe from fungus for 6 months Hilal
foods use latest technology. Hazard Analysis is also done at Hilal foods for safety
precautions.

Micro Environment
 Market Analysis
Hilal has a mass market and capturing a large share in Layer Cake market.
 Company
Company itself is the part of Micro environment. A Hilal food is the oldest
confectionary in Pakistan. It is well known organization in Pakistan. There is a strong
integration among departments of Hilal foods.
 Suppliers
Hilal believes in maintaining strong relationship with suppliers.
 Intermediaries
Hilal Marketing Team is young and energetic and believes in making partnership for
creating, communicating and delivering value to the final consumers. It has good
relations with its media partners, finance division and other distributors.
 Competitors
Hilal Special Kake has strong competition with Peki by Ulker. Peki is the first mover in
this category. Other competitors include Euro Cake and bakery baked cakes. Hilal
Special Kake is also facing internal competition with Hilal Cup kake.
 Customers
Consumers are the most important part of any organization’s micro environment.
Hilal Kake chosen a mass market, it is essential to provide quality, availability, variety
and taste to the customers.
 Purchase Motivation
KAKE is a ready to eat snack, so purchase decision of the consumer might not be as
long as it could be in general means. Consumer will show variety seeking buying
behavior in this sort of product. Buying nature will be frequent, less expensive, low
involvement and quick decision.

8|Page
COMPETITIVE ADVANTAGE
Hilal’s Kake is produced for middle class because normally lower class in Pakistan goes for
product which is locally produced by bakers with no good or attractive packing. They also
have cheaper prices.

There are several reasons why Hilal is better than other competitor:

Brand name: Hilal Kake is known everywhere because of Hilal’s strong market position.

Price: they are offering Kake in Rs 5 and Rs10 but its competitors are offering cake in Rs 10.
So for the consumer Rs 5 is very much affordable.

Variety of Flavors: They introduce new flavors day by day. They introduced unique flavor
which is not available in any other soft cake company. Flavors like blueberry, khopra etc.

Softness: Hilal Kake is much softer than any other soft cake in the market. Most people like
it test and buy it.

Packaging: The packaging of Hilal Kake is most attractive. People can find out it among
many different cakes.

Competitive Advantage: Although above discussed points are contributing to Hilal Kake’s
strong position, but wide distribution of Hilal kake is the competitive advantage of the
brand.

9|Page
BCG (Growth-Share) Matrix
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company’s position in
terms of its product range. It helps a company think about its products and services and
make decisions about which it should keep, which it should let go and which it should invest
in further.

BCG Matrix for Hilal Kake

In BCG matrix, KAKE will be placed as Question Mark; Cake market is relatively growing but
market share of Hilal special kake. They want to come up with strategies to get market from
RS.5 Layer cake to Hilal Special cake “KAKE”.

HILAL Special Cake

Dingdong “KAKE”
Khopra Candy

Sunsip
Tulsi Fresh up
Roller Wafer
Gummies

10 | P a g e
SWOT Analysis
 Increased competition, specifically
from the small producers of low
quality confectionery products in the
unorganized sectors who do not pay
their taxes and illegally operates their
businesses.
 Turkish and other Iranian products
especially in KAKE category are
biggest threats for the HILAL “KAKE”
market
 Growing population in Pakistan is
expanding the market size
continuously.
 They can appeal to health conscious
segment of the consumers by
launching some sugar free candy or
other confectionery items.

11 | P a g e
Research and Development

Marketing Research: Whenever a company tends to launch a new product or service in the
market or it wants to find out new opportunities it conducts a market research. It is
important because it helps marketers know their customers and it tells them that how the
needs and wants of the customers are changing now days. Without having all these insights
a company won’t e able to offer people with something of value and won’t be able to serve
them better than competitors and would fail to retain and keep them.

Hilal now tends to focus on research and development which it was lacking until recently as
they did not have a marketing department. The marketing department was introduced only
couple of years back and it emphasizes on taking customer insights and is very much
interested in knowing what their customers would really want to have.

The research conducted at Hilal is on both qualitative and quantitative manners. Besides,
Blind Testing is also preferred.

Research Methodologies used by Hilal

Confectionary is a highly competitive industry in Pakistan. Continuous research is
exceedingly essential. Hilal Foods conducts various research programs using primary and
secondary sources to get qualitative and quantitative results.

Secondary Data Collection

Hilal foods gather data from its sales department, creative department and retailers to get
insight of market trends and new product development.

12 | P a g e
Primary Data Collection
Central Location Testing

A Central Location Test (CLT) is a face-to-face survey method where respondents are
invited, with or without prior notice, to some convenient place (ranging from a public
meeting place to a research field facility.

This type of testing is usually used for research into new or modified products, though it
also finds successful application in testing advertising or packaging materials. Hilal Special
Kake is modified form of Hilal Kake. Hilal foods also did central location testing for its
Special Kake.

Blind Testing

Hilal Foods does blind test market research. It is done by asking consumers to compare the
tastes of different brands, usually competitor’s brands, the identities of the products are
concealed, or otherwise consumers will generally tend to prefer the brand they are familiar
with. Hilal Foods use blind testing to get significant insights on how a brand can improve its
taste.

Screening Questionnaires

Screening process builds the foundation for reliable and valid data collection. Hilal Foods
use screening questionnaire method to get customer attitude towards brands, frequency of
purchase, competitive analysis etc. This research is carried out by research agencies.

13 | P a g e
14 | P a g e
G
U
m
2
P
A
p
V
B
T
S
F
R
M
)(5
f0
k
W
w
v
L
h
fi
b
ti
y
lo
&
n
rtc
g
a
s
iu
d
e
Segment Profile

Targeting
Targeting is to select segment which company can best cater to respective needs and wants
of the consumers. Hilal KAKE targeted not only any single segment but the mixture of some
variables of geographic, demographics, psychographic and behavioral segmentations.

15 | P a g e
Positioning
Hilal is dynamic changing company and always looks to opportunity to build a strong
emotional attachment with consumers through their products. Hilal is a big company in a
market and recently they are planning to expand their warehouse networks. They have
strong brand image in consumer minds.

Slogan: REASONS TO SMILE

Marketing Plan of Hilal Special Kake

Product
Hilal Special KAKE is the product of baked product line of the Hilal Confectionery. It is a
Fresh, high quality, nutritious layer cakes. It is available in many different flavors such as
Chocolate, Coffee, Chocolate Chip, and Strawberry, Blueberry, Khopra and others.

Creating Value
Hilal Special Cake is creating value for customers
by meeting their needs and wants particularly it is
beneficial for mothers who give this cake to their
kids in lunch. Secondly, in Pakistani society we are
usually habitual of eating some baked items at tea
time. So in this way Hilal “KAKE” is providing a core
benefit of ready to eat healthy cake in different
flavors.

Product Life Cycle

PLC consists of the stages that a product goes through by the course of its
lifetime/existence in the market, in terms of its sales and profits. It has 5 stages:

Product Development:

16 | P a g e
 The point where there are no sales as the product is still in the production and
development stage and only investments costs are there.

Introduction:
When the new product is launched in the market and made available for purchase. As it’s
only the initial stage so it takes time for sales to happen and generate profits. The costs are
still high due to distribution and promotion expenses involved.

Growth:
When the product finally gets to be accepted by the customers and purchases begin. Here
the sales go up quickly as more and more tend to buy the product. Here competitors would
also enter the market.

Maturity:
The stage where the products sales has gone slow and by that time the product has
become so strong that it gives a tough competition to the competitors and at the end only
well-established competitors remain.

Decline:
The stage where the product ceases to exists and its sales start to go down drastically
because it was able to keep up well with the competitors and wasn’t able to come up with
effective competitive strategies.

Hilal Special Kake’s PLC

Regarding PLC, the brand Hilal is in maturity stage, as it has been in the market since a very
long time and it possesses recognition in the minds of the people, and people tend to
associate themselves with Hilal.

17 | P a g e
The product form, i.e. layered cakes is in the introductory stage, as it hasn’t been long since
they were introduced, so there is a lot room for innovation and differentiation and much
could be done so as to make it the preferred choice of the customers.

The product category is lies in the maturity stage, as there a lot of varieties of cakes
available in the market and in different forms. Namely, Cup cakes, Sponge cakes, Swiss rolls
etc.

Growth Strategy
Market Penetration

A strategy for company growth by increasing sales of current products to current market
segments without changing the product. Hilal have used this growth strategy to increase
their sales. As far as their Kake is concern, they introduced different flavors like Blueberry,
chocolate, khopra and many other flavors to increase their sales.

Branding Strategies

18 | P a g e
Branding decisions are one of the most crucial decisions that a marketer has to make.
People tend to associate themselves with brands. It’s like an asset to the company.
Branding decision choices that a company might make are:

Line Extension:

When a company already has a certain line of product and it comes with different forms,
sizes, or colors under the same product category.

Brand Extension:

When name of an existing brand is used for a new product category it is called Brand
Extension.

Multi-branding:

When the product category remains the same but there are different brands under that
category. This is done so as to cater to different sub-segments under one big segment.

In case of Hilal Kake, they have followed Line Extension. They already had a product line by
the name of Hilal Kake, after which they came up with Hilal Special Kake, thus coming up
with a new product form in the existing product line. They did so because Hilal is very well
known among the customers and accepting a product from them was easier and more
likely. And it proved fruitful for them as well as customers accepted the product widely
even though at the initial stage of the launch.

19 | P a g e
Price
Pricing Objectives
Market for Hilal KAKE is quite price sensitive market. If price of the product goes so low it
will certainly results in higher disloyalty from consumers. Hilal’s pricing objective is to
become market leader by selling in volume as well as providing the best quality layer cakes.
They usually follow pricing of the competitors.

Pricing Strategy
Pricing strategies keep on changing through a products life cycle. There are certain types of
pricing strategies that a company can choose from:

Market skimming: Where the product is one of its kind and is in the introductory stage,
its priced higher so as to gain as much market share as possible. Because later on as
competitors come in it lowers down its price.

Market Penetration: The price is comparatively lower than the competitor because the
company wants to penetrate in the market and attract more and more buyers .

Product Line pricing: Different products in a line are priced different according to the
differences in the products in that line.

Value Based Pricing: The price is set according to the value the product is providing and
the company believes that the price they are setting justifies the value they are offering.

Superb Pricing: When the price of the product remains the same but something more is
offered.

Hilal followed value based pricing, as in Rs.10 they are giving a bigger size, more flavors,
and improved quality all in one, something which was not done by their competitors and
which proved to be an addition to competitive advantage of Hilal.

20 | P a g e
Place (Distribution)

Distribution refers to the steps taken to move and store goods from the supplier stage to a
customer stage in supply chain. Distribution itself is the most significant part and driver of
the overall profitability of the company because it influences the cost of supply chain and
also the customer experience. It also creates time and place utility. They transfer or depot
all stock from their factories to distributors and then from distributors, their goods transfer
to wholesalers and then to retailers and then directly deliver to customers. Hilal have a
direct contact with retailers like super stores, so they directly transfer their goods to super
stores as well.

As far as distribution is concern, Hilal uses intensive distribution (stocking the product in
many outlets as possible); to make sure that it is available in every outlet. Their products
are easily available allover Pakistan at every road corner store as well as at all big stores. It
is available in all provinces in urban, suburban and rural areas but in rural areas, their
distribution is limited.

Hilal manages relationship with their suppliers, distributors and resellers by offering
incentives against which they are expected to achieve certain sales target.

21 | P a g e
k
c
P
m
w
G
IfL
g
H
A
W
d
h
n
F
M
O
T
S
U
C
u
b
D
o
p
x
E
ilrs
ta
e
R
N
SUPPLY CHAIN STRUCTURE OF HILAL CONFECTIONARY

CPWAREHO
USTOMERS
ROCUREMENT
LWOGISTICS
AREHOU
Raw material
Distributors
Inbound
USE
SE
Packaging
Retailers
Transferring of
Technical items
Finished goods
Exports
Rawgoods
material
22 | P a g e
Promotion

Promotional Goals
There are three basic goals of promotion

Awareness: Where the company is tells or informs their customers about their offering
and the benefits it brings along.

Persuade: When marketers are tend to convince their target market to go and make the
actual purchase.

Remind: When the company is only reminding its customers that we are still there and we
still exist. It’s just to tell them that we haven’t gone anywhere.

The promotional goal was to inform customers about the launch of Hilal Special Kake, its
new and unique flavors and to inform them that they have come up with something which
is meant for the whole of the family and everyone can equally enjoy it.

Promotional Mix
Promotional mix consists of all the promotional tools a company might use so to
communicate their target market about their offering. They include electronic media, print
media, social media, direct marketing, personal selling, public relations etc.

They had promoted their product through TVCs, printed ads, bill boards as well as through
social media as well. The reason being the product is meant for the whole of the family and
it was targeted for the mass market, so it was promoted using various channels so that the
message reaches in wider terms. Hial is using social media effectively to enrich its
promotional mix.

Advertising Theme

It was a reactive strategy that was followed by Hilal in response to Peki by Ulker.

23 | P a g e
Conclusion
The marketing plan is a cycle that begins and ends with evaluation. The final stage
in the marketing plan is to measure the outcomes of the marketing activities
against the original objectives and targets. To bring the range of Hilal kakes to
market, Hilal Foods has put together an effective marketing mix, but there are
some shortcomings related to promotional strategies. Hilal has the capability to
response competitor’s product launch due to high standing of market share.
Growth of Confectionary industry is a good sign for Hial Foods.

Recommendations
 Hilal should take proactive stances rather applying reactive strategies.

 Continuous environmental analysis must be followed.

 Hilal must clearly identify its target market to make specific marketing
programs.
 Improvement of Promotional and advertising theme is required.

 A fresh and healthy image should be used to promote Hilal Special Kakes in

the media. Kids at school lunch time, family parties and Tea time fun would
me more attractive and useful.

 Introducing new variant “Sugar free soft cakes” which offer product
development and market development as well, would also help Hilal Foods
to hold leading position.

 Telling customers about new uses of product such as using with deserts and
custards will increase frequency of use or usage.

24 | P a g e
References
Books:
 Principle of marketing by Philip Kotler
 Principles of Marketing by Evans Berman

Websites
1. http://www.hilalcandy.com/
2. https://www.facebook.com/Hilal.Confectionery.Pvt.Ltd
3. http://www.valuebasedmanagement.net/methods_bcgmatrix.html

25 | P a g e