MARKETING RESEARCH

Frankies Chips
(Tripple-em)

Final Research Document

PRESENTED TO: Ms Ayesha Raza

PRESENTED BY: Ahmed Hassan Zaka Asad Azeem Khan Hassan Ali Fatima Khudayar Seemal Zubair Usman Akhter Awan
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Table of Contents
MARKETING RESEARCH.............................................................................................. 1 (Tripple-em)................................................................................................................1 1. Company Overview................................................................................................4 2. Super Crisp : A Success Story.................................................................................5 3. Pakistan & Snacks Industry ...................................................................................6 3.1. Public Sector in Food Industry .........................................................................7 3.2. Local Competition Analysis...............................................................................7 4. Market Analysis ................................................................................................................................... 9 5. Frankies Introduction............................................................................................10 6. Market Segmentation...........................................................................................10 6.1. Consumer Segment........................................................................................11 7. Target Marketing..................................................................................................12 8. Opportunity Analysis............................................................................................13 9. Information Needs................................................................................................14 10. Research Proposal..............................................................................................15 10.1. Purpose of the Proposed Research Project...................................................15 10.1.1. Problem Statement ........................................................................................................................... 15 10.1.2. Research Objectives...............................................................................15 10.1.3. Hypothesis............................................................................................. 15 10.2. Type of Study...............................................................................................16 10.2.1. Exploratory Research.............................................................................16 10.2.2. Descriptive Research..............................................................................18 10.3. Definition of Target Population.....................................................................19 10.4. Data Collection Method................................................................................20 2|Page

10.4.1. Sampling Method...................................................................................20 10.4.2. Sample Size............................................................................................21 10.5. Specific Research Instruments ....................................................................21 10.6. Potential Managerial Benefits of the Propose Study.....................................22 10.7. Proposed Cost Structure of the Total Project ...............................................22 11. Exploratory Research Implementation...............................................................23 11.1. Experience Survey........................................................................................23 11.1.1. Experience Survey of Assistant Brand Manager.....................................24 11.1.2. Experience Survey of Retailers...............................................................26 11.1.3. Findings from the Experience Surveys...................................................41 11.2. Focus group..................................................................................................42 11.2.1. Findings From the Focus Group ........................................................................................................................... 42 12. Questionnaire Design.........................................................................................44 12.1. Consumer Questionnaire..............................................................................44 12.2. Retailer Questionnaire..................................................................................47 12.3. Distributor Questionnaire.............................................................................50 13. Sampling Plan.....................................................................................................52 13.1. Target Population.........................................................................................52 13.2. Data Collection Method................................................................................53 13.3. Sampling Frames..........................................................................................53 13.4. Sampling Method .............................................................................................................................. 53 13.5. Sample Size .................................................................................................54

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1. Company Overview
The firm we have chosen for the marketing research is Tripple Em. Tripple Em (Pvt.) Limited, the pioneer company in manufacturing of premium quality crisps and snacks in Pakistan, was established in 1982. Their instant success Super Crisp produced for the first time in Pakistan on the most modern American technology was launched in 1986. Ever since its launch, the Super Crisp has established new sales records and over wheeling consumer acceptance. Being the flag carrier of a truly international quality of crisps ever produced in South Asia and Middle East, the Super Crisp has opened un-conventional source of foreign exchange earnings for the country. Starting with their prime product of potato chips, the company has progressively expanded its product line to include Peanuts, Nimko Mix, a spicy Pakistani snack and other corn/potato extruded products. In South Asia and Middle East, Tripple Em ranked first and remained the only company producing premium quality snack food items. Tripple Em is a recognized member & affiliated to ‘Potato Chips/Snack Food Association of America’ since past several years. The said Institute holds authority for maintaining quality standards in chips/snack food production of its member industries. The snacks made from handpicked, farm fresh raw material, sprinkled with world’s best flavors and spices, processed under strict international hygienic conditions are meant to satisfy the highest gourmet tastes. Oven freshness of the products is guaranteed by special metalized film used for packing purposes. The company offers a range of snack food items to include Potato Chips, Nimko Mix, Peanuts, corn and potato based extruded products. Nation wide availability of the products is made possible by a vast and effective distribution network. Back in 1982, this business firm was created with the vision to cater to the culinary requirements of the taste buds of the Pakistani nation and at the same time to uphold the qualifications, preconditions and specifications set internationally by the ISO 9001. They commenced with the

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crunchy product of potato chips of high quality under the brand name of “Super Crisp”. No doubt the name itself is self-explanatory.

2. Super Crisp : A Success Story
Super Crisp was introduced in 1986. Utilizing the latest technical know-how of U.S.A., a landmark was created in the food market which till then, had not seen a ‘Light Meal’ or a ‘tit bit’ that could be labeled fresh hygienic, energizing and munchy. Within a short span, it created a niche for itself, while at the same time the substandard products till then rampant in the food market had to suffer a major set back. Ever since the consumers (by patronizing) gave a green signal to the product, the company got the confidence to make headway by adding other products of the same high standard to the initial one. This family went on growing and peanuts, nimko mix (spicy Pakistan snack), Dal Moong (fried lentils) enhanced the product line. They become well aware of the necessity to keep the requirements of the Sweet young Pakistani Kids so they endeavored to manufacture some extruded products solely meant for the kids but never ever forgot to maintain quality control, good taste, freshness and flavour in keeping with the tender taste buds of the little ones. So, in 1992 Potato Stumps, Wheelo Pops, Catty Chins and some other products were put forward in the market. One important thing, which the top management visualized was the cost effectiveness for the products meant for kids (even those meant for the adults are cost effective too). The products manufactured by Tripple Em gained instant popularity, without promoting it in the usual way that is currently in vogue in the food market. This reality itself speaks volumes that a good product is itself a self assured, a self-proclaimed thing that is readily beheld by the seeing eyes & the eating mouths. There vision is to provide fresh, healthy, crunchy, handsome and whole some meals in the form of snacks. They believe in being ethical in their all claims and dealings with the customers, dealers, and organizations. Tripple Em has a clear vision to reach its customers in every nook & corner of urban & rural areas of Pakistan to satisfy their appetite for tasty & nutritious snacks. They as a market leader
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The analysis is as follows: On the basis of data collected and present survey of the market. current total market is estimated at 2. Being in the Global business. 3. They are on the move with innovative ideas to shape the customer desires into products and this marathon will go on and on. The life style is improving and going to be changed and also because of satellite invasion the demand is bound to register a considerable boost. The demand of the present market is met by the mix of Branded and Unbranded Chips available in the Market. Children.are committed to strictly observe the food safety rules and produce highest quality snacks with the latest state of the art technology.000 Tons of Chips which is segregated as follows: 6|Page . Annual Growth Rate of Snacks Industry is estimated at the rate of 20 % to 30 % per annum. Big potential do exist for investment in this Industry in Pakistan as the Demand or Growth rate is very high. they have adequately equipped themselves with Quality Management Systems to cater the requirements of their domestic as well as foreign customers.. Pakistan is also in line with those Countries. teenagers and young people are the target market of the product and we have the experience that the eating habits of the Target Market is rapidly changing and they like to have Snacks all the time. There is 60% of the population which is Brand Loyal. However remaining 40% of the Un-branded Market can be attracted through heavy Advertisement Campaign. Further Potato and Corn Snacks are labeled as a meal replacement and being a light fast food is becoming popular. Pakistan & Snacks Industry Third World Countries are very habitual to adopt the Western Culture therefore.

the Share of Profit is about 19% which is insignificant. 3.200 800 2. Local Competition Analysis As there are very few corn based chips already existing in Pakistan for example Kurkuree. Some of the Leading Potato Chips Companies in Pakistan are: COMPANY NAME Standard Foods (Pvt.2.) Limited BRAND NAME Golden Chips 7|Page . I believe that our company and the product will be competing with all potato chips manufacturing companies. Public Sector in Food Industry The share of Food Industry and Allied in Karachi Stock Exchange is approximately 15 %. Having Capital investment of 7.05 Billion Rupees.1.000 3.Segments Branded Unbranded Total Share % 60 40 100 Quantity (Tons) 1.

Tripple EM (Pvt. Good potential exists for a new brand to compete and fetch a market share provided that: • • • • • • • Having good quality of product Unique Packing A market Network Industry Understanding Financial Soundness Feed back of Information Preferring the taste of the Market 8|Page . Triple Em which produces major share that is about 50 % and is a market leader.) Limited Kohinoor Smith (Pvt.) Limited Consolidate Pepsi Co Super Crisps Smiths Kolson Lays Presently.

Market Analysis Brands Market Prices TM 10 Buying Price for Margins offered to Local Sourcing Market Share 50% Age:5-20 Loyal.35 13.66 33. Quantity oriented 15-30 Extrovert . Golden Chips The sale price of golden chips is RS 5. Middle & Lays 10 8. SEC B.Quality Disel Chips Kolson Chips 10 8.4.5 15% 3% 10 6.9 12% Saudi Arabia 15% upper middle class Age : 5 – 25 Quality Oriented. Now they are in big threat due to lays. Complaint 5-20 Sec B & C. upper class Benefits oriented(quantity lovers). They are targeting to SEC B & C.5% Local 10% oriented. Middle and upper middle.C ---Segmentation Distributors Retailers 9 10% Super Crisp Super Crisp is the market leader with maximum market share of almost near 40%. Heavy Golden chips Pringles 100 Rs85 15% Imported 5% 5 4. The age segment for Super Crisp ranges from 5 – 20.5% Local 15% users. 9|Page .

10 | P a g e . In Pakistan the income level of a person is the only determinant of the social class he belongs to. Secondly. 5. Pringles are targeting to Sec A1 & SEC A2. The market consists of people in different income brackets. Tripple-em wanted to achieve two goals from the launch of this new brand. Firstly. 15 category. Market Segmentation In the case of Frankies.5. 20. Frankies Introduction Tripple-em introduced its new brand in the market in February-March 2007. 6. The society is divided into different classes called the Socio Economic Classes (SEC). Frankies is supposed to be parallel to Super Crisp. the market has been divided into segments based on income as well as the psychographics of the society. They are hygienic. Rs. they wanted a new brand in their product line on their Silver Jubilee. they introduced Frankies with different tastes in order to capture the consumers with diverse tastes. The segmentation and target market of the product is described below. The SEC A is the elite class or the upper class of the society.Kolson Chips Kolson successful products include Slanty. whereas the SEC C is the lower class of the society. They have chips but they are not successful and usually not regularly available. Pringles Pringles is imported from other countries by P&G. 10 and Rs. The brand name they chose for it is “Frankies”. they wanted to fill the gap in market price structure. They have tried to segment the market according to the social economic classes. SEC B is the middle class of the society. Being the market leader. They planned to give a tough competition to its competitors who have introduced their products in Rs. The income level or the social class of an individual is a key variable in the determination of the demand for all the products in the market. best quality crisps and they are quite expensive. Tripple-em already had its products in prices of Rs.

Young. New couples. Consumer Segment The consumer segmentation for Frankies is as follows: Geographic Demographics Age Gender Family Life-Cycle Income Occupation Education 5 – 25 as core target market Male. Prep – Masters Launched in all main cities of Pakistan 11 | P a g e . Female.C s mr on u e S CA E S CB E S CC E Figure: Market Segmentation 6.1. Pak Rs. Children. 25000 College and School going students. Single.

Medium and heavy users. Target Marketing Targeting a market is a critical factor in the marketing strategy of a company. It consists of the people who are blessed with every luxury money can buy. Socio Economic Class A The SEC A is the upper class of the society. They have a lot of money and need to spend it at everything that satisfies them. TM has identified this market segment as its prime target consumers. Instant gratification. Tripple-em 7. Upper class. Assistant Brand Manager. Middle Upper. Socio Economic Class B 12 | P a g e . present user. 15 and Rs. Sporty Extrovert.Psychographics Social Class Life-Style Personality Behavioral Benefits More material. Social. Frankies chips are targeted towards the market gap that is the higher price market. Currently there are no manufacturers producing Rs. informed. Therefore we will evaluate each segment to judge the correct target market for Frankies. Middle. None. 25 packs. Food Lover . Complaint Source: Mr. Unaware. Awais Malik. medium and strong as well. Good taste User Rates Loyalty Status Readiness Stage. Light. The target market should be in accordance with the company’s goals and objectives. Therefore this segment of the market was untapped and TM had decided to cater to the higher end customers.

This class of the society is very attractive as it promises to bring high volume to the business and can prove to be the most profitable segment of the market. The problem that they are facing is they have not distributed their product in low line areas categorized as C and D even though the demand does exist in those areas. A and B class.This is the middle class of the society. are very price conscious. Awais Malik. 8. A and B segments of the society. Another problem faced by Tripple-Em is the shortage of space in the departmental stores to keep separate racks for displaying their product. After an analysis. consume these products. These people are the largest consumers as they provide the largest volume for the company. Tripple-Em categorizes its target market into five categories. For Frankies they have only targeted A+. 2. C and D (A+ being the richest class). For Frankies the market has been divided into segments based on income and psychographics. For that reason they are keeping brands of different companies in one rack resulting in loss of identity for a particular brand. 13 | P a g e . we conclude that target market of Frankies chips is the A+. Socio Economic Class C This is the lower class of the society. The people in this class are the largest part of the society. assistant brand manager of Tripple-Em we were able to identify the following problems: 1. B. There are five categories namely A+. It contains people who are financially not that well off and are struggling to make ends meet. Opportunity Analysis After having a meeting with Mr. Frankies are also targeted towards these customers as they have the economic power to move towards a higher priced product. Those people who do. This part of the society is not a consumer of higher priced snack foods. So company is facing a distribution problem. A. Therefore this segment of the society does not form the target market for the product.

• • • • • • • • 14 | P a g e . Another major problem faced by Tripple-Em is the lack of interest shown by retailers and the distributors in reselling and distributing their stock.3. To find out the general image of Frankies among the general public. To see if consumer demand for Frankies really exists in the market. To find out the effects of marketing mix variables on the public demand. They include: • The reasons behind retailer’s reluctance to buy Frankies. 4. 9. Information Needs Keeping the above mentioned problem faced by Triple-em in gaining a desired and significant market share for their newly launched product. The reasons behind distributor’s reluctance to stock Frankies. But due to heavy budget advertising from their multinational competitors like Lays. To find our reasons for retailers preference for other competitor brands. so they never needed to emphasize on advertising in the past. Frankies. Advertising by multinational companies is a recently faced serious problem for Tripple- Em. the company is now exposed to serious threat that might result in a decline in sales. As Tripple-Em has always been a market leader in Pakistan’s snack industry with no major competitors as such. To see if Frankies is geographically well distributed. we need to collect the following information that would facilitate our research processes. To see the impact of the multinational competitor’s on Tripple-em’s sales. To find our reasons for distributer’s preference for other competitor brands.

To find whether higher margins to retailers affect their choice of brand. To find whether there is enough demand for the Frankies products in the market. Hypothesis The following are the hypotheses that are to be tested in the study. Purpose of the Proposed Research Project 10. 10. Problem Statement The problem of this study is to determine the factors affecting the sales/demand of distributors and retailers of Frankies products.2.3. with regards to retailer demand. Research Proposal 10. a. b. 10.1. d. No significant difference exists between brands with expiry/damage retake and brands with no expiry/damage retake.10. To find whether expiry retake and damage retake effect the choice of brand for retailers.1. b. To find whether incorrect placement takes place and whether it affects the company’s image. 15 | P a g e . f. the most favorable way of positioning the product. g. with regards to retailer demand.1. No significant difference exists between brands with higher margins and brands with lower margins.1. To find whether the credit policy affect distributor sales. e. To find whether the positioning according to the geographical locations.1. To find whether the entry of multinationals affected the operations of the company. c. Research Objectives a.

d. g. No significant relationship exists between the consumer and placement of brand with regard to customer’s choice/ selection of brand. 10. Exploratory Research Exploratory research focuses on collecting either secondary or primary data and using an unstructured format or informal procedures to interpret them. No relationship exists between brands with retailer-friendly credit policy and their corresponding retailer demand/distributor sales. There is no relationship between the consumer’s demand and advertisement by competitors. No significant difference exists between brands with correct placement and brands with incorrect placement.1. Descriptive research uses a set of scientific methods and procedures to collect raw data and create data structures that describe the existing characteristics of the defined target population or market structure. h.c. Type of Study The type of research design that has been chosen for the above mentioned problem statements are the exploratory research design and descriptive research design. Product demand depends on general income level of a geographical location. therefore it is better for the research to be conducted according to the 16 | P a g e .2. 10. As the problem is unclear and we don’t have much insight into the problem. The data and information generated through descriptive designs can provide decision makers with evidence that can lead to a course of action. e. The main reason for choosing exploratory research design is that it helps in breaking a broad and vague problem into precise sub problems. It is often used to classify the problems or opportunities and it is not intended to provide conclusive information from which a particular course of action can be determined.2. f. No relationship exists between consumer‘s demand and income level. with regards to company image.

We will be conducting an experience survey with anyone who has association with the retailing and distribution of Frankies. Through Exploratory research we will be able to ascertain these hypotheses and further discover more of them as we interview and question different retailers and distributors. We derived the hypothesis listed earlier. H. focus groups and analysis of selected cases. Frankies. Focus groups are currently one of the most frequently used techniques in marketing research since they have proved to be productive for generating hypothesis. 17 | P a g e .exploratory research design first. Mr. information helpful in structuring consumer questionnaire and securing impressions on the product under discussion. Brand Manager.M Avais Malik. Experience survey is an attempt to tap the knowledge and experience of those familiar with the general subject being investigated. Triple-Em. In our case this would include the retailers and distributors itself since they have both experience and knowledge of the market. The problem will be divided into specific hypothesis. Then each hypothesis will be tested in the descriptive research phase to find out the precise problem and hence the solution to the problem. We will also looking at the demand side of Frankies by the end consumers to get insight into the real factors involved. Asst. Literature searched depends on the problem being addressed. During these discussion sessions he shared the possible causes for the problem under concern. Through exploratory studies we will identify the possible reasons for low sales/demand of Frankies by retailers and distributors. experience search. Exploratory studies include literature search. Literature search is one of the quickest and cheaper ways to discover hypotheses. gave us a brief introduction of the company and the background behind the launch of Frankies. Unfortunately in our case literature search is not possible because we do not have access to any published material or the company’s internal records.

what. Our descriptive studies would help Tripple-Em to draw inferences about their customers. Special care would be taken of selecting respondents in such a way that each group is relatively homogeneous.2. target markets.2. 10. Longitudinal studies involve panels of fix sample of elements which are measured repeatedly whereas the cross sectional study being the most common and most familiar method involves a 18 | P a g e . Now the company is worried and wants to know if it is the consumer’s side which is facing a decreased demand or there is a problem at the distributor/retailer end which has made them reluctant to re-order Frankies. Descriptive research would help us find the actual cause for this slow down in Frankies demand. We will select a moderator who is intimately familiar with the purpose and objectives of the research. This would minimize both conflicts among group members on issues not relevant to the study objectives and differences and preferences. He or she would possess good interpersonal communication skills. Our exploratory research is followed by a descriptive research because descriptive research designs are appropriate when the research objectives include determination of the degree to which marketing variables are related to actual market phenomenon. The basic division of descriptive study is between longitudinal and cross sectional design. either it’s the retailer/distributors or the customers. competitors. retailers and the distributors. Descriptive research would best suite the problem in hand because initially we need to identify that that actually is the reason for the low demand of the product (less than expected). when and where questions concerning different components of a market structure. We would look for answers to the how. Although there is not a decline in the sales but at the same time demand is not meeting the expected figures. Descriptive Research Descriptive research uses a set of scientific methods and procedures to collect raw data and create data structures that describe the existing characteristics of a defined target population or market structure.We will conduct 2-3 consumer focus groups consisting of 8-12 members. environmental factors. who. Analysis of Selected Cases are not executable in our case due to certain limitations of timings and resources.

First. Upper class social class are fun loving and sporty. For the purpose of our research we choose to stick to the cross sectional study. Cross sectional study involves counting the simultaneous occurrence of variables of interest. The core target consumers of Frankies are both male and female and mainly belong to the age segment of 5 to 25. as contrasted to the longitudinal study.sample of elements from the population of interest.3. provide a movie of the situation and the changes that are occurring. This hypothesis could be examined under cross sectional study. usually with a probability sampling plan. customers. Second. It has two distinguishing features. which provides a series of pictures that. to be determined. which are measured once only. when pieced together. The “large” number of cases usually resulting from a sample survey will also allow us for cross-classification of the variables. The probability sampling plan allows the sampling error associated with the statistics generated from the sample. Definition of Target Population The study is related to the consumers. the sample of element is typically selected to be representative of some known universe. 19 | P a g e . They belong to the Middle. but used to describe the universe. Middle Upper. Therefore. Measurement would be taken from a representative sample of the population with respect to the customers demand and their income level. For example consider the following hypothesis: There is no relationship between the customer demand for Frankies and income level. That is one reason that the technique is often called a sample survey. a great deal of emphasis is placed on selecting sample members. In cross tabulation we would count the number of cases that fell in each of the following cases: • • • • High customer demand for Frankies and high income level High customer demand for Frankies and low income level Low customer demand for Frankies and high income level Low customer demand for Frankies and low income level 10. the retailers and the distributors. it provides a snapshot of the variables of interest at a single point in time.

This will be a non-probability sample.4. The retailers will be selected from the different regions of Lahore. The retailers will be studied in order to test our hypothesis regarding the problems with retailers. The distributors are small in number and hard to contact. We have selected four key areas for research in Lahore namely Gulberg. Sampling Method Different sampling methods will be used for the different target populations. Defense. or there is not enough customer pull present for the product. The distributors will be contacted by the management’s referral. Data Collection Method The data relating to the consumers and the retailers will be collected through self-administered surveys. are directly concerned with the retailers and their demand for the product. The reason for choosing different methods is that the populations are different in nature. The retailers on the other hand are larger in number therefore the chosen sample will have respondents from different geographical areas of Lahore. Model Town and Johar Town. The 20 | P a g e . therefore a snowball sample will be used to select the distributors in the desired areas. are related to the distributors. This will help us in proving whether the distributors and retailers are not ordering the Frankies products due to the problems previously listed. 10. as claimed by the management. The distributors will be selected from Gulberg. credit policy and the distribution of product.4. We will randomly select the retailers in these areas and conduct our study through questionnaires. The regions will include Gulberg.1. Defense. The data relating to the distributors will be collected through personal interviews. Model Town and Johar Town. The hypothesis regarding the placement of product. The hypothesis regarding the margins.These consumers will be studied to determine whether the demand for the product actually exists in the market. Model Town and Johar Town. margins. 10. Some of the problems relating to the retailers are common with distributors. The distributors are also included in the study as they are an important part of the supply chain. expiry/damage retake and credit policy. expiry/damage retake. Defense. It will include different questionnaires for consumers and retailers.

we will select 50 retailers for the study. The questionnaire will be designed in accordance with the hypothesis. 10. Specific Research Instruments The data from the retailers and consumers will be collected through a questionnaire. so that we get an un-biased result. 21 | P a g e .questionnaires will be specifically designed for the retailers in order to get the desired information. Moreover. The questionnaire will help us in determining the outcome of the hypothesis. We will study 4 distributors. The consumers are the largest of the target populations. The sample will be selected from different retail outlets as well as other places. and it too will be specifically designed for the consumers.4. We will select around 10-12 retailers from each area under consideration. We feel that it is a considerable sized sample taking into accounts the time and resources for the project.5. The reason for selecting a small sample is that the target population is small in size and a single distributor is responsible for the distribution of a large area.2. We will select around 500 consumers for the purpose of study. in terms of size. 10. Moreover the interviews with the management and distributors will also help us in gaining insight into the problem at hand. Therefore a small number of distributors will be representative of the target population. A questionnaire will be used to gather the required information. These sample sizes have been discussed and been approved by our client. Sample Size The sample size that will be used will be dependent of the target population. This sample size will be representative of the retailer target population and it will provide us with comprehensive insight into our study. As they are present everywhere therefore a simple random sample will be used to select the sample.

Potential Managerial Benefits of the Propose Study The study will help the management in understanding the different problems faced by the retailers and distributors. Proposed Cost Structure of the Total Project The following is the proposed cost structure of the project: Proposed Survey Size 22 | P a g e . They will get to know the source of the problems. 10.6.t Retailer demand Retailer demand Company image Retailer Retailer Retailer Retailer / Distributor Retailer Ordinal Ordinal Nominal Nominal Interval Mean Mean Mode Mode Mean Source measurement Measure of averages 10.e. on the other hand. try to satisfy their customers in order to increase market share. This information will help them with formulation of a strategy that can solve the issues with their retailers and distributors and they will be able to satisfy them in a better manner or.The following are the scale measurements that will be used for the analysis of the variables. i. The resolution of problem issues will lead to an increased interest in the purchase of Frankies products and hence a larger sales volume and market share.r. Scale of Hypothesis Variable 1 Brands with high margin Brands with expiry retake Brands with correct replacement Retailer-friendly credit policy Product demand Consumer Consumer Consumer Variable 2 Brands with low margin Brands without expiry retake Brands with incorrect replacement Retailer demand Income level Selection of Placement of brand Income level Advertisement by competitors brand Demand Demand Consumer Consumer Consumer Nominal Interval Ordinal Mode Mean Mean w. who is responsible for generating those problems.7.

000.00 Rs: 500/day Rs: 1.1. Exploratory Research Implementation 11.000.000.500. We have a vague problem and we needed to break it down so that we can research it thoroughly.00 Rs: 1. For this reason we interviewed the assistant brand manager of Triple-em and some retailers to gain an insight into the major 23 | P a g e . 4 Distributors. 50 Retailers Time Duration Available: From 7th September 2007 to 5th December 2007 NO: DESCRIPTION Survey expense for 500 consumers 1* within Lahore (expected time: 1 week) Visit to four distributors for 2* interviewing(expected time: 2 days) Survey Expense for 50 Retailers 3* 4* 5 6 7 8 (expected time: 1 week) 6 visits to Tripple-Em Paper Cost Approx: 250 papers Stationery cost Entertainment Expense Total Cost Rs: 250 Rs: 2 Rs: 2.000.00 Rs: 500.000.• • • 500 consumers. Experience Survey We used the experience survey to get an insight into the problem.00 Rs: 5.00 Rs: 14.00 Rs: 1.000.00 TOTAL Note * these costs covers fuel cost and all survey materials used for surveys 11.00 Rs: 3.

We also conducted a focus group of 10 people to get to know whether the customers are aware of the brand. 3. the sales are not as we had hoped them to be.problems being faced by the retailers and distributors. What in your opinion is the market response of Frankies chips? Frankies has had a successful launch and is liked by the customers very much. Despite of this fact. Experience Survey of Assistant Brand Manager We interviewed the assistant brand manager of Tripple-em. 1. 11. 2. We interviewed him due to two reasons. Mr. Why do you think this is? In my opinion there are a lot of factors that can affect their demand.1. Firstly he gave us the insight to the management’s viewpoint of the problems and secondly as he is in direct interaction with the retailers and distributors therefore he was in the position to give us some insight into their problems as well. Awais Malik. They are not demanding the product as they should. What do you think is the main reason for slow sales? I think the main reason for the slow sales is the retailers and distributors.1. It can be higher margins by competitors or other issues caused by distributors. 24 | P a g e .

What is the promotional strategy followed by Frankies? We are not promoting the product that extensively. 6. We don’t need to do extensive promotion of the brand.4. 8. These brands have an international presence so the customers are attracted to them more easily. But considering the marketing budget they have. What are those issues specifically? Well for starters. especially if it’s new because the market response is not predictable. Moreover we wanted to capture the high end market segment therefore we have distributed the product only to the high line areas. How have you distributed the product? We have positioned the product as a high end consumer product. The main reason is that the name of Tripple-Em is a promotion in itself. Moreover our brand is not correctly placed on the retailer’s shelves. 25 | P a g e . some distributors do not offer credit or expiry retake to retailers. Do you think that this may be causing some problems? To some extent. There are areas where the demand exists but the product is not available so it affects our sales. so they are put off by the idea of keeping a brand. That is why we have kept the price a little high. Don’t you think that the multinationals that have come in the market will affect your customer base? Yes they are giving our brand a tough time. 5. 7. I think we are doing fine. yes. This also is a factor affecting the brand’s image.

This is quiet an attractive offer for us (retailers) to prefer Lays over any other brand of snacks. Lahore Cantt.1. 26 | P a g e . but we cannot afford to have only Lays because it can limit the snack variety available at our store. Where the difference comes is the promotion strategies e. How important are margins for the sales? Margins are not too much of an importance because we generally prefer to have all snack varieties at our store. Name of the Store: Ghafoor General Store Name of the Owner: Mohd Latif Telephone # : 6681555 Location : Rahat Complex. the margins barely vary between different companies. lays. Experience Survey of Retailers We conducted an experience survey of five retailers in order to confirm the problems that were mentioned by the brand manager. 3. 2.2. golden chips etc.g Lays are offering 1 liter Pepsi bottle free of cost with one carton of Lays. What is the margin structure offered to you? Margins offered are almost the same for all the brands of snacks which include tripleEm. although we do prefer to have greater stocks of Lays. 1.11. What are the implications of higher margins by other manufacturers? As already discussed. Therefore. because of an additional promotional offer.

Does a friendly policy positively affect your demand? 27 | P a g e . What is the credit policy offered to you? It depends on the track record. Triple-Em guarantees all kinds of expiry and damage retake. What are the problems relating to expiry retake? No problems as such. 6.4. then they do offer us a relaxed credit policy. 5. 7. Is expiry retake and damage retake offered to you? Yes. if our previous track record with the distributer is trust worthy. How does expiry retake and damage retake effect your demand? It doesn’t effect the demand. 8.

most people are generally unaware of the name Frankies.Obviously yes. a healthy relationship between me and my distributer does have a positive impact on our transaction frequency. Do you think that there is enough demand in the market for Frankies? Not as that of lays. 28 | P a g e . 9.

so it is important in a way. 2. Gulberg. How important are margins for the sales? We prefer to stock those brands which save us the most.Name of the Store: Stop And Shop Name of the Owner: Shahid Telephone # : 6674593 Location : PAF Complex. What are the implications of higher margins by other manufacturers? We try to sell those products more. 4. It is around 2 rupees per pack. What are the problems relating to expiry retake? 29 | P a g e . 1. it is offered by TM. What is the margin structure offered to you? Same as offered to by others. Is expiry retake and damage retake offered to you? Yes. 3. 5.

It does help for the business’s liquidity. How does expiry retake and damage retake effect your demand? Not at all. Does a friendly policy positively affect your demand? Yes. 9. 8. 7.No problems regarding this issue. 30 | P a g e . Supercrisp on number two. 6. What is the credit policy offered to you? We prefer on spot payment mainly. at times we can issue them post dated cheques. Do you think that there is enough demand in the market for Frankies? Lays on the top.

31 | P a g e .10. If not then what do you think are the reasons and if it is then why do you think that the company is not happy with the sales? I think there is not enough awareness about the brand.

Is expiry retake and damage retake offered to you? Yes it is offered by almost all the manufacturers. How important are margins for the sales? We like to buy products with high margins.Name of the Store: Cash and carry Name of the Owner: Munawar Telephone # : 6651153 Location : PAF Complex. Gulberg. What are the implications of higher margins by other manufacturers? We also require variety as well regardless of margins. 3. What is the margin structure offered to you? Same as offered by others in the market. 4. What are the problems relating to expiry retake? 32 | P a g e . 2. 1. 5.

If not then what do you think are the reasons and if it is then why do you think that the company is not happy with the sales? 33 | P a g e . 10. Do you think that there is enough demand in the market for Frankies? Lays is on top. but it is obvious that if it is not offered to us then we will certainly think about it a couple of times. 6. Does a friendly policy positively affect your demand? Yes it definitely does. What is the credit policy offered to you? We have the option of late payment. We give post dated cheques to our distributors. How does expiry retake and damage retake effect your demand? We currently are not faced by us so I cannot comment on it.No problems are currently faced by us. but Frankies demand is very slow. 7. 8. 9.

People are not aware of Frankies. 34 | P a g e .

Is expiry retake and damage retake offered to you? Yes it is offered by almost all the manufacturers. It is about the same as other brands. What are the problems relating to expiry retake? 35 | P a g e . We do consider product margins when ordering the product. 2. 4. Garden Town 1. What is the margin structure offered to you? It is around 2 rupees. How important are margins for the sales? Yes it is important. 5.Name of the Store: Fresh Inn Name of the Owner: Irfan Location: Barkat Market. 3. What are the implications of higher margins by other manufacturers? It is not of much importance as we also have to think about product variety in our store.

we have problems selling the chips so we don’t order Frankies that regularly. Does a friendly policy positively affect your demand? Yes it should effect the retailers which require retailers. How does expiry retake and damage retake effect your demand? It does make a difference as we have to put customers first. If not then what do you think are the reasons and if it is then why do you think that the company is not happy with the sales? 36 | P a g e . and the product is mostly sold out before expiry. What is the credit policy offered to you? We don’t take products on credit.No problems are currently faced by us regarding the expiry retake as the time of the product life is long enough. 10. 6. 7. 8. Do you think that there is enough demand in the market for Frankies? The demand is very slow. 9. so it is irrelevant.

there is not much demand.People are not aware of Frankies. 37 | P a g e .

4. 3. Take an example of lays. Is expiry retake and damage retake offered to you? Yes it is offered by all the manufacturers.5 rupees. What is the margin structure offered to you? It is around 2 to 2. Garden Town 1. We place them at attractive places and recommend those products to customers. We buy a higher quantity of those products. It is about the same as other brands.Name of the Store: Quick Check Name of the Interviewee: Asim Location: Barkat Market. What are the implications of higher margins by other manufacturers? It is certainly important. What are the problems relating to expiry retake? 38 | P a g e . they promote by giving a bottle along with a box of chips. 2. 5. so it is attractive for us. How important are margins for the sales? Yes it is important. We try to sell those brands which offer more margins.

We order around Rs. The distributors take the products very happily. 9.3000 of chips and we pay them cash. 6. If some brand does not offer us this then we will not take that product any more. 7. 10. Do you think that there is enough demand in the market for Frankies? The demand is very slow. How does expiry retake and damage retake effect your demand? It makes the difference when we select the brand. What is the credit policy offered to you? We don’t take products on credit. If not then what do you think are the reasons and if it is then why do you think that the company is not happy with the sales? 39 | P a g e . Does a friendly policy positively affect your demand? It is irrelevant. 8.No problems are currently faced by us regarding the expiry retake. You can see that we have other products stacked in frankies display as the demand is not very good.

There is not enough promotion of the brand. 40 | P a g e .

Although there are some problems with the distribution channels. We also found that the main problem with Frankies is that the customer demand is low.11. but the customer factor is a major influence in the demand of the retailers. 41 | P a g e . Therefore now we are making the customers.3. Out of the rest only 2 knew about it and the rest have no idea what Frankies is.1. a major part of our study. Findings from the Experience Surveys After interviewing 13 retailers we found that only five retailers have Frankies chips. despite the fact that they had Super crisp.

only 50% were aware of Frankies. we conducted a focus group of around 9-10 individuals to talk about Triple-em’s Frankies. they were of the view that it could have been made far more attractive. Another factor which the annoyed the diet conscious respondents was that the nutritious value per serving is nowhere mentioned on the Frankies packet. Our major goal was to focus on the four P’s of the marketing mix to find out in detail what the audience thought about each one of them when it comes to Frankies.11. They lied more or less in age bracket 18-25. These were primarily the consumers of Snacks. Although none of the respondents showed a strong dislike for Frankies. So whenever a new snack product is launched. Moreover. These members included college going students. only 20% had ever tasted Frankies and none of them was a die heart fan of Frankies. Some even looked displeased with the appearance of the packaging. So they wouldn’t buy Frankies merely because it’s a product of Triple-Em. 42 | P a g e . particularly in the snack food industry. Focus group For the purpose of generating more possible hypothesis for the concerned research. They believed that the flavor ‘Sour cream and Onion’ tasted nothing like sour cream or vinegar. Some compared Frankies to Lays as being somewhat soggy and not very fresh and crispy like Lays was.2. both male and female picked up randomly from Lahore School of Economics. some were of the view that these flavors seemed to be a typical copy of the flavors offered by Lays. The respondents felt that the brand name is not a determinant of the demand of the products.1. Findings From the Focus Group Product From among the members of the focus group.2. but the general impression was they weren’t too happy with the snack. the renowned producers of Super Crisp. Moreover some respondents were just not satisfied with the flavor options currently being offered by Frankies. Most of them thought that they eat Frankies primarily because they don’t have a lot of snack options in Pakistan. you tend to give it a try basically due to the limited nature of other options available. 11.

Price All the respondents of the focus were more or less indifferent to the price of Frankies. So the respondent were of the opinion that it is impossible to expect from the customers to know about Frankies when even most of the retailers consider the Frankies an alien name in the snack industry. which would be more authentically verified in descriptive research). Promotion It was surprising to know that of all the members of the focus group.15 as compared to other Rs. Place Most of the respondents believed that Frankies were not as easily available at the retail stores as were other snacks. This triggered the uproar that good promotion was an essential ingredient to guarantee the success of a product. only 50% had ever heard about the name Frankies. 43 | P a g e . what matters the most is its unique taste and not the price itself (but obviously this statement can vary when asked from the lower income groups.10 snacks) of Frankies was compensated by the additional chips quantity in a packet. TV commercials or any other form of advertisement done by triple-Em to promote Frankies. Moreover. Most of the respondents barely remembered any billboards. but it was primarily because of the unawareness of Frankies among the retailers. because the believed that the slightly higher price (Rs. they were of a stern belief that when it come to snacks. Some even said that it wasn’t the shortage of supply that causes this unavailability.

5. Specify_______________________ 6.30  31 .15  16 – 20 21 . Are you a frequent purchaser/consumer of snacks? If No then proceed to Q No. Which brand of chips first comes in your mind?      Super Crisp Lays Frankies Golden Chips Other. 16.1.35  36 – Above 3.25 26 . What is your gender? 2. Questionnaire Design 12. Who do you purchase the snack for?   Yourself Family  Your Children  Others  Friends 44 | P a g e . Consumer Questionnaire Ref No:…… 1. What is your occupation?     Student Professional Businessman Other  Yes  No 4.12. Indicate your degree of familiarity with the following brands? Never Heard of Heard of But Never Tried Tried Eat/Buy Regularly Super Crisp Lays Frankies Golden Chips 7. What is your age?    Male  Female 10 .

8. Please Specify______________________ 10. Where do you normally purchase snacks from?      Department Store General Store Road Side Khokha Cafeteria Other. Extremely Important Important Neutral Not Particularly Important Not At All Important Brand Name Choice of Flavors Nutritional Value Taste Freshness Packaging Price Naturalness Availability Advertisement 11. Have you ever tried Frankies? If No then proceed to Q No. 16. (1 being the most preferred and 4 being the least preferred). Rank the following brands in order of Preference from 1 to 4. Rank the following factors affecting your choice of chips according to their importance. How did you come to know about Frankies? (Tick All that Apply)  Radio  Television  Personal Recommendation  Billboards  Retail Store  Yes  No  Other Source__________________________________________ 13. 12. When was the last time you heard or saw an advertisement of Frankies?  Within the last month 45 | P a g e . (Tick one option for each factor).      Super Crisp ____ Lays ____ Frankies ____ Golden Chips ____ Not Tried Any of the Above 9.

   1-6 months More than 6 months Never 14. Extremely Satisfied Price Quality Taste Quantity in a Pack Flavors Availability Packaging Nutritional Value Brand Name Satisfied Neither Satisfied Nor Dissatisfied Dissatisfied Extremely Dissatisfied Problems Regarding Frankies ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………… Additional Comments/Suggestions ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 16.000 or more Prefer not to answer 46 | P a g e .000 or less 11. What is your approximate monthly household income level? Rupees        10.000 21.000 to 80.000 51. How do you rank the following characteristics of Frankies Chips? (Tick one option for each factor).000 to 20.000 to 30. How often do you purchase/eat Frankies chips?       At least once a day Once every 3 days Once every week Once a month Only bought them once Never 15.000 31.000 81.000 to 50.

2. Extremely Important Brand Name Margin Expiry Retake Credit Policy Demand of Brand Promotions Distributor Important Neutral Not Particularly Important Not At All Important 2. Which of the following brands do you keep in your store? (Tick all that apply)     Super Crisp Lays Frankies Golden Chips 3.. 1. Specify Brand:____________________________________ 4. Retailer Questionnaire Ref No:……. Which of the following has the best Margins? (Rank from 1 to 5. Specify Brand:____________________________________ 5. Tick one option for each factor. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. Which of the following sells the most? 47 | P a g e . Which of the following has the best Brand Name? (Rank from 1 to 5. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____.12. Rank the following factors affecting the choice of chips you stock according to their importance.

48 | P a g e . Specify Brand:____________________________________ 8. Which of the following has the best Placement in your store? (Rank from 1 to 5. Which of the following brands provides Expiry Retake? (Tick all that Apply)      Super Crisp Lays Frankies Golden Chips Other. Specify Brand:____________________________________ 7. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. Please specify any problems relating to the distributors of Frankies chips. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. Which of the following has the most attractive Promotions? (Rank from 1 to 5. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. Which of the following brands provides a Credit Policy? (Tick all that Apply)      Super Crisp Lays Frankies Golden Chips Other. Specify Brand:____________________________________ 9. Specify Brand:____________________________________ 10.(Rank from 1 to 5. Specify Brand:____________________________________ 6.

_____________________________________________________________________________________ _____________________________________________________________________________________ _______________________________________________________________ 49 | P a g e ._____________________________________________________________________________________ _____________________________________________________________________________________ _______________________________________________________________ 11. Please specify any problems relating to Triple-Em.

Specify Brand:____________________________________ 4.12. Extremely Important Important Neutral Not Particularly Important Not At All Important Brand Name Margin Expiry Retake Credit Policy Demand of Brand Promotions Manufacturer 2. Which of the following has the best Margins? (Rank from 1 to 5. Distributor Questionnaire Ref No:……. Rank the following factors affecting the choice of chips you distribute according to their importance. Tick one option for each factor.3. 1.. Specify Brand:____________________________________ 3. Which of the following has the best Brand Name? (Rank from 1 to 5. Which of the following sells the most? (Rank from 1 to 5. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. Which of the following has the most attractive Promotions? 50 | P a g e . Specify Brand:____________________________________ 5. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____.

Do you offer Expiry Retake to Retailers? 8. Please specify any problems relating to Triple-Em. Specify Brand:____________________________________  Yes  Yes  No  No 6. 1 being the best and 5 being the worst)      Super Crisp Lays Frankies Golden Chips Other ____ ____ ____ ____ ____. _____________________________________________________________________________________ _____________________________________________________________________________________ _______________________________________________________________ 51 | P a g e .(Rank from 1 to 5. Do you offer a Credit Policy to Retailers? 7.. Please specify any problems relating to the Retailers of Frankies Chips. _____________________________________________________________________________________ _____________________________________________________________________________________ _______________________________________________________________ 9.

The target population includes school going children who form a large portion of the potato chips demand. which are directly concerned with the retailers and their demand for the product. Furthermore.1. expiry/damage retake and credit policy. The elder population is also being included in the study as they are involved in purchase decisions and also influence the attitudes and behaviors of young school going consumers. Sampling Plan 13. As the objective of the study is to find out the demand of Frankies chips. Inclusion of retailers in the study allows us to get insight regarding the placement of product. therefore all the consumers and customers of potato chips are included in the target population so that we can get an objective view of the situation. margins. The guardians of these children are also part of the target population as they are the customers of potato chips. Retailer Both large scale and small scale retailers who sell snacks are included in the target population. 52 | P a g e . college and university going students of ages 15-25 are included in the target population because they are the target customers of Frankies. This includes all the General and Departmental stores having aisle of snacks. The retailers were selected from the different regions so that we could get a representative sample for our study. as well as factors influencing the demand of potato chips. Inclusion of the target population is vital for the study as it will provide an insight into the marketing strategy of Frankies. Target Population Consumer The target population for the survey is the consumers and customers of potato chips. The target population comes under the age bracket of 10 years to 50 years.13.

Sampling Frames The sampling frames of distributors were taken from Tripple-em and the sampling frames of retailers were taken from the distributors. 13. Sampling Method Consumer The sampling method used for consumers will be judgment sampling.3.4. 13. The data relating to the distributors was collected through interviews both personal and telephonic. It included different questionnaires for consumers and retailers. the list of retailers was to be obtained through distributors and was to be classified into clusters according to geographical locations.2. Retailer The sampling method to be used for retailers was cluster sampling which is one of the probability sampling methods. This method divides the sampling units into mutually exclusive and collectively exhaustive subpopulations. Data Collection Method The data relating to the consumers and the retailers was collected through self-administered surveys. called clusters. The sampling frames include names and locations of all the distributors and retailers so that we can easily contact them when we collect data for our study.Distributor The target population for the survey is all the existing distributors of Triple-em products. Each cluster would be representative of the heterogeneity of the target retailer population. This will allow us to understand their problems. In our study. But due to the non availability of information from the distributors. The reason why it is difficult to use any probability sampling method is we do not have any information about the size of the population. distribution channels being used and their demand for Frankies. The distributors were contacted by the management’s referral. 13. we were not able 53 | P a g e . So we will be trying to use our own judgment to involve the most suitable snack consumers in our survey.

The reason for selecting a smaller sample of distributors. Model Town and Defence etc. Distributor The distributors were selected through a convenience sample. Garden Town. Most of the respondents would be chosen from the school/college going segment since that is the target market for 54 | P a g e . we have selected 50 retailers for the study. therefore the distributors were contacted through the management so that there is a level of trust between us. The reason behind this is that if we choose a larger sample size for larger population. We conducted the sample as a non probability sample and did the sampling on Judgement. the consumers. Sample Size The sample sizes that we will choose for all the three populations. We feel that it is a considerable sized sample taking into accounts the time and resources for the project. as discussed above is that the target population is small in size since a single distributor is responsible for the distribution of Frankies to a large area to large number of retailers. but it would also reduce the sampling error significantly. The areas as discussed earlier. We were able to gather information from 43 retailers.5. 13. include Faisal town. We selected 10-12 retailers from each area under consideration. Therefore a small number of distributors will be representative of the target population. We have studied 8 distributors. retailers and distributors would be in accordance to the corresponding population sizes. As there are a limited number of distributors and we have to select only those distributors who are catering to our target retailers. Moreover. Gulberg. We went to different markets of Lahore and surveyed different retailers. We selected 400 consumers for the purpose of study.to conduct the cluster sampling. larger sample size to be representative of larger population and smaller size to be representative of smaller population. That is. Moreover. it would not just be more representative of the total population. therefore we selected only those distributors who are conveniently available for questioning. due to the confidentiality some distributors were not willing to give information regarding their problems with Tripple-Em.

55 | P a g e .Frankies. Due to some refusals and low quality of data we were only able to collect information from 292 respondents.

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