Marketing Management Project

[Type the document subtitle] | Shahzeem

MARKETING MANAGEMENT
PROJECT
Product: French Fries
Group Members:
Shazeem Jawed
Mahnoor Shahid
Hussain Abbas
Yousuf Hingoro
Abdur Rehman
Madiha Shoukat
Shahrbano Jafri
Amal Nasir
 Marketing Management Project

Acknowledgment
We, Shahzeem Jawed, Mahnoor Shahid, Hussain Abbas Yaqooti and Muhmmad Yousuf
Hingoro, Abdur Rehman, Amanl Nasir, Madiha Shaokat and Shaharbano Jafri take this
opportunity to express our profound our special thanks of gratitude to Ma’am Bushra, for her
exemplary guidance, monitoring and constant encouragement throughout the course and who
gave us this opportunity to do this project on, which also helped us doing research and we came
to know about so many things and we are very thankful to the teacher for this project which we
are about to embark for the finals as well

2|Page
 Marketing Management Project

Content

Executive Summary…...…………………………………………...... 01
Introduction………………………………………………………….. 01
Industry Analysis...………………………………………………….. 02
Market Description…...……………………………………………... 02
Market Segmentation……………………………………………....... 03
Target Market Strategy……………………………………………… 03
Market Needs…………….…………………………………..……... 03
Market Trends……………………………………………….………. 04
External Environment ……..………………………………………... 04
Product description……………..……………………………..…….. 05
Competitors…………..…………………………………………....... 06
Distribution………………………………………………………..… 06
SWOT Analysis…………………………………………...………… 07
Objectives………….……………………………………………...… 07
Positioning………... …………………………………………........... 07
Sales Strategy…………..……………………………………………. 08
Competitive edge………...………………………………………….. 08
Marketing Mix………………..……………………………………... 08
Market Organization………………………………………………… 09
Hierarchy……..……………………………………………………… 09
Financials……………………………………………………………. 10
Appendix…………………………………………………………….. 12

3|Page
 Marketing Management Project

Executive Summary
The French fry business is considered one of the most famous and common businesses in the
world and almost all fast food restaurants, fine dining restaurants, gourmet restaurants, and more
are offering French fries on their menu. And we have chosen French fries as our product and
Chicky Potato as our outlet for which we will present our marketing plan.

In today’s highly competitive environment, it is becoming increasingly difficult to differentiate

one fast-food outlets from the other, Karachi; a city state is now becoming the model metropolis
for Pakistan’s new economic boom. With many sectors in the country, fast-food sector is now
becoming one of the strongest sectors in urban regions

The main priority for Chicky Potato would be establish its current business and plan strategies to
expand its operations further in future

Chicky Potato will entice youngsters to bring their friends and family with their innovative
environment, French cut fries and selection of unique sauces

Introduction
Chicky Potato is a locally owned fast-food outlet that sells French fries as its main product,
located at main Seher Commercial, DHA phase 7, operating from 12pm to 12am, daily. Chicky
Potato was started by four friends who invested their own capital as their startup cost. Starting
Chicky Potato was the idea and vision of one of the four friends and the outlet had its opening
ceremony in July 2010. A partnership, Chicky Potato is a retail business; this outlet will offer
variety of choices to its customers. . It would provide online delivery services, where people can
order for themselves. Chicky Potato will make its best effort to create a unique place where
customers can socialize with their friends and family in a comfortable environment while
enjoyed the best food in town with different flavors along with sideline .The outlet will help its
customers in relieving their decision making for food through its convenient location, friendly
customer service and products of high quality

4|Page
 Marketing Management Project

Industry analysis
In Pakistan, consumer expenditures for fast food is growing year on year at a very fast rate due to
innovation and the presence of multinational chains such as McDonalds, KFC, Subway and
many more. These multinational chains have set high levels of revenue generation by using
market Led approach and by modifying in their menus. In Pakistan, multinational chains are
considerably more expensive because they are considered glamorous and are much more
hygienic and cleaner than local eateries, due to such aspect, there is a rapid increase in trend of
fast food restaurants outlets in recent years.

Nowadays, not just in Pakistan but all over the world, there are hectic jobs which people try to
cover on daily routine and tend not to go to places to eat instead they call in urgency for food.
Such scenarios also build the rate of growth of a product. In Pakistan, similar kind of situation
has been developed over the past years and people are trying to save their job time as much as
they can. Secondly n option has increased due to innovation of fast food in the category of
eatables and it has become a taste for the consumers of all ages due to separate types of meals
with different prices suitable for everyone

Market Description
Consumer expenditures for fast food in Pakistan have increased in the past few
years. The increasing number of new establishments such as fast food franchises,
fancy restaurants and gourmet bakeries around Pakistan has shown a significant
growth in this sector. Food spending is around 56% of total consumer expenditures
in Pakistan, and consumer spending on leisure and recreation made up of 13% of
total consumer spending.

A much broader appeal exists for weekend slots because those are the days when most of our
core target market enjoys out going activities

Eating out still remains as Pakistanis common habit of life. They do not perceive fast food as a
luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the
environment of the western-style fast food outlets

5|Page
 Marketing Management Project

Market Segmentation
Chicky Potato focus on its segmentation strategy based on the following

 Geographic segmentation: Chicky Potato operates in main Seher Commercial, DHA

phase 7, the outlet operates in a busy street in a commercial area near residential area
with easy access and high exposure to potential customers.

 Demographic segmentation:
o Age – Youngsters, single currently enrolled in college and high school
o Family unit - Appeal to families with children
o Gender we will target both sexes, with a slight skew for males due to their
lower attention to dietary concerns.
o Income- we will appeal to the medium income individuals and to all in the
lower medium income bracket.

Target Market Strategy

Chicky Potato intends to target and cater to the bulk of teenagers and youngsters who live close
by. We have chosen this group for several important reasons. It is our goal to be “the
extraordinary fast food place” and we believe that the age group from 15 to 25 is the primary age
where brand building efforts could take place. They are on limited or fixed incomes and seek a
value/price relationship that will not stretch their budgets.

Our secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user
group. They are more flexible in budgets and seek more than a value/price relationship.

Market needs
Fast food is one of the fastest growing sectors and the market size of french-fries has also
increased. As the population is continuously increasing in numbers, the sales and needs of
French fries is also increasing. People enjoy eating French fries at any time of the day. Crunchy
fried foods are universally appealing and French fries are a very common food around the world
and they can go with any type of meal. The acessessibility and affordable price insist the
6|Page
 Marketing Management Project

consumer to crave the product. Therefore it was a mission of Chicky Potato to cater the needs of
such consumers .Following needs were analyzed for french-fry market

 Want for variety and flavor in food, preferably something fried.

 Looks for speed of service.
 Want for entertaining and fun experience
 Clean, friendly and attractive environment.
 Adaptation of a global lifestyle.
 Good seating experience
 People from various ethnic backgrounds prefer different lifestyles

Market Trends
In the past, Pakistani’s preferred Western chain restaurants. This was the time when KFC,
MCDONALDS and PIZZA HUT were dominating most of the chains. But the trend seems to
have shifted in the last decade with the success of the locally grown brands.

The Pakistani economy is becoming increasingly service oriented. The food service industries,
offering the highest level of convenience have been rewarded with the strong sales growth. In the
face of rising population, fast-food outlets strive to find the ways to make their product even
more accessible

Many more table service restaurants, which traditionally focus on full- service in house dining,
are now capturing part of the market by offering take out and possible experimenting home
delivery. The value of customer time as well as the demand for consistent, high quality food
products today will continue to shape up the fast food industry. Fast food, once considered a
novelty, has become an increasingly significant part of the young generation’s diet

External Environment
The main factor which effect business is the degree of competition as how other businesses
compete with the product that other business makes

Firstly social factor will affect Chicky potato like changes in attitude towards health. Now a
day’s people are very much health conscious and they will more prefer to cook fries at home
rather than buy from outside

Secondly legal factor for example working hours as in our field of food working hours or peak
hours start at late night or in the night which can also have an effect
7|Page
 Marketing Management Project

Thirdly the political factor as if our outlet is in a food street and government builds several
building or projects in that area could affect our business

Markets are changing all the time. The main reason is as new competitor enters in the market
will divide our market and we have to rapidly come up with new changes to compete in the
market. Another reason can be shopping malls where mostly people go and spend their time in
their food courts. A few large rival firms can also affect for example Mc Donald’s KFC etc they
are one of the big brands

Another major strategy which our competitors can do would be cut prices, improve quality,
promotions which will soon react to increase in competition

Product Description
Chicky Potato primarily sells fries as it main product and would soon be offering unique dipping
sauces. Chicky Potato’s lunch strategy is dual purposed. First, the outlet would feature fresh fries
to fill consumers’ craving for fast food as most ideas of lunch is a quick bite not a heavy meal.

Second, Chicky potato would keep the price point at lunch as fair as possible to keep the outlets
in competition with other fast food outlets and execute the concept so that “word of mouth” will
be our main marketing force. The company would be seeing the following products

Flavors Small (rs) Medium (rs) Large (rs)

Plain fries 50 60 70
Masala fries 50 60 70
Garlic mayo fries 80 90 100
Chatni fries 60 70 80
Chicken powder fries 60 70 80
Wedges 50 60 70

In addition the outlet would sell the following sauces and dips that can be served with
sandwiches, nuggets and wings

Sauce (Rs) Sauce (Rs)

Pesto Mayo 50 Thai Chili Ketchup 50
Garlic Dip 50 Creamy Wasabi Mayo 50
Teriyaki Sauce 50 Roasted Pepper Mayo 50
Lava Cheese 50 Black Pepper Sauce 50
Curry Ketchup 50 Jalapeno Ketchup 50
Barbecue Sauce 50 Hot Chili Sauce 50

8|Page
 Marketing Management Project

Competitors
The direct competitors of Chicky Potato are:

 Red apple: They mainly targets customers through their deals.

 Hot and Spicy: they target their customers with new flavors.
 A-1 Fast food: they target their customers through prices.

Along with other small fast food shops working in Karachi. Since they are also on a growth
stage, they are their direct competitors.

Other Fast food restaurants in Karachi such as

 Burger King: it is working in around 15,243 different places in the world.

 McDonalds: it is working in 36,615 different areas
 KFC: which is locates in 19,952 areas
 Fat Burger: located in 150+ areas

And other outlets like OPTP are Chicky Potato’s indirect competitors since they are working on
bigger scale. Chicky Potato is getting more customers by offering good quality food for low
price, it imposes price affordable for the customers and other side products are also available
based on the clients’ budget line. Chicky Potato’s fry’s price is low as comparatively to its
competitors

Distribution
Chicky Potato has a great distribution network. It gets it ingredients by a particular supplier,
which are fresh and clean and provides its own excellent delivery services in nearby area for a
minimum order of 500rs it also provides take away and dine in services for its customer. The
outlet accepts orders through calls and emails on facebook page and delivers it less than 40 to 50
minutes

SWOT Analysis
9|Page
 Marketing Management Project

Strength Weakness
Own business Health conscious people
Low prices No variety
Strong location No marketing or promotion
Permanent Outlet
Wide Variety
Opportunities Threats
Vast market to expand business Increased societal focus on health
New products development, new flavors Intense competition
Targeting new customers New entrants

Objectives
Following would be the strategies of Chicky Potato

• Introduce our products to the clients through different ways of marketing

• Develop marketing strategy to build brand image
• To establish ourselves as a successful local fast food outlet and gain market share in
Pakistan’s fast food industry
• To expand into a number of outlets around the other neighboring cities of Pakistan
• Achieve a revenue of 2 million in one year

Positioning
Chicky Potato would be positioned as a franchise outlet that would be specialized in
providing its customers a fresh alternative to typical fried fast food products with
the convenience of fast food with rapid response time. Chicky Potato would be
positioned between traditional fast-food restaurants and sit down restaurants.
According to research data, customers within this market segment are more attuned
to the health benefits of their eating habits, and are willing to pay more for a better
fast food choice when compared to the general population. The unique selling point
of chiky potato would be it different and wide rant of products and sauces for which
it would have a very different market position.

Sales strategies

10 | P a g e
 Marketing Management Project

Sale strategy is a comprehensive plan to get customers to purchase your product. A sales strategy
focuses on making sales

Convenience is a major selling point for fast food chains. People choose from the menu, servers
immediately place them on a tray, and off the customer goes
Chicky Potato has to prove its worth to customers in order to earn their respect and interest.
Orders would be done online and on calls. The delivery would be free and on time. Chicky
Potato also plans to offer a drive thru services when it expand its operations in the future

Competitive Edge
 Our unique dipping sauces blend local taste and international into one fusion recipe for
the signature sauce.
 Enthusiastic and friendly staff.
 Supporting merchandise item that support company’s brand building.
 Our fries are made of 100% fresh potatoes, unlike the frozen fries used by competitors.
 Innovative packaging will position us at the same level with foreign fast food franchises.

Marketing Mix
A good marketing Mix strategy would be drawn from market research and focus on the mix in
order to achieve the maximum profit and sustain the business. A big part of fast food success is
marketing strategy. Marketing of Chicky Potato can be done through variety of methods.

The strategies that we would implement are

• Price Strategy
The outlest will impose prices affordable for the customers and other arrangements are also
available that are based on the clients budget line. We base our arrangements and prices to the
customer’s capacity to buy. We will sell in 3 different sizes small, medium and large
• Promotion Strategy
Our goal is to gain enough visibility to expand our shop to other locations. We also plan to
promote the shop through commercials, social media and Pamphlets

• Product differentiation

11 | P a g e
 Marketing Management Project

Unique sauces’segment has not been explored in Pakistan yet and it is our unique product
which has not been introduced by other competitors
• Place strategy
Our store will operate in a busy street in a commercial area near residential area with easy
access and high exposure to potential customers

Marketing Organization
As it’s a small business there are four partners as well as friends who owned Chicky Potato and
some of their employees

Chicky potato is based on partnership. There would be a team of 10 member including 4 CEO’s
along with a manager who will directly report to CEO’s and under manager there are low level
employees including 2 chefs, an accountant and a front line person who will head the delivery
boys as well as the counter. The marketing and the sales department would be headed by the
owners

In future when they will expand their outlets in different areas then there would be managers of
every areas of city where out outlets will be and the owners will also be divided to head different
outlets

Hierarchy
4 CEO's

manager

2 chef accounts front line

2 delivery boys

12 | P a g e
 Marketing Management Project

Financials
Revenue of product per month

Flavors (small) Cost Quantity (m) Sales

Plain fries 50 300 15000
Masala fries 50 350 17500
Garlic mayo fries 80 400 32000
Chatni fries 60 350 21000
Chicken powder fries 60 200 12000
Wedges 50 200 10000

Flavors (medium) Cost Quantity (m) Sales

Plain fries 60 200 12000
Masala fries 60 250 15000
Garlic mayo fries 90 300 27000
Chatni fries 70 300 21000
Chicken powder fries 70 180 12600
Wedges 60 100 6000

Flavors (large) Cost Quantity (m) Sales

Plain fries 70 200 14000
Masala fries 70 300 21000
Garlic mayo fries 100 200 20000
Chatni fries 80 150 12000
Chicken powder fries 80 150 12000
Wedges 70 100 7000

Sauce (Rs) Quantity (m) Sales

Pesto Mayo 50 400 20000
Garlic Dip 50 350 17500
Teriyaki Sauce 50 240 12000
Lava Cheese 50 620 31000
Curry Ketchup 50 450 22500
Barbecue Sauce 50 360 18000
Thai Chili Ketchup 50 540 27000
Creamy Wasabi Mayo 50 500 25000
Roasted Pepper Mayo 50 420 21000
Black Pepper Sauce 50 650 32500
Jalapeno Ketchup 50 440 22000
Hot Chili Sauce 50 400 20000

13 | P a g e
 Marketing Management Project

Expected Sales:

Products (Rs) Monthly (Rs) Annually

Small fries 107,500 1,290,000
Medium fries 93,600 1,123,200
Large fries 86,000 1,032,000
Dips and Sauces 268,500 3,222,000
Total Sales 555,600 6,667,200
less: Tax 17% (1,133,424)
Total After Tax 5,533,776

Estimated Salaries:

Staff Monthly Salary Annual Salary

Chef 18,000 216,000
Chef 18,000 216,000
Manager 20,000 240,000
Front Line Manager 18,000 216,000
Accountant 19,000 228,000
Delivery Boy 12,000 144,000
Delivery Boy 12,000 144,000
Total Salaries 117,000 1,404,000

Estimated Expenses:

Expenses Monthly Annually

Rent 80000 960,000
Salaries 117000 1,404,000
Transportation 20000 240,000
Electricity bill 7000 84,000
Internet bill 2000 24,000
Phone bill 2000 24,000
Advertisement 10000 120,000
Others 7000 84,000
Total expenses 245000 2,940,000

Estimated Profit Forecast:

Particular Monthly Annually

Revenue 5556000 5533776
Less: Expenses 245000 2940000
Total Profit 5311000 2593776

Appendix
14 | P a g e
 Marketing Management Project

Logo:

“You Can’t Beat Chicky At Potatoes”

Questionnaire
15 | P a g e
 Marketing Management Project

1. I am
Male Female

2. My age group is:

Under 10 11-20 21-35 36-45 46-above

3. I enjoy the following types of French fries:

Greasy crispy thick curly any way at all

4. I enjoy French fries from the following restaurants:

Mc Donald’s KFC Chicky fries Mr. Burger

5. I am concerned about Trans fats in my French fries.

Yes, I sure am
I don’t know what fats are
I only want great tasting French fries

6. I prefer: (select all that apply)

Frozen French fries cooked at home
Restaurant prepared and eaten there
Restaurant create and bought at home

7. I eat French fries because:

They are good source of energy
High in carbs
Taste great

8. What about the prices of French fries at restaurants:

I don’t care much
I only care for quality and taste
I buy less when the price goes up

16 | P a g e