National University of Computer and Emerging Sciences

Course Name: Marketing Management

Instructor Name: Syed Zeeshan Haider
Section: BBA 2A

PROJECT: Rafhan [Custard]

Group Members
Muhammad 20F-0034
Asad Ur Rehman 20F-0033
Maheen Iqbal 20F-0023
Fatima Azeem 20F-0019
Table of Contents
PROJECT: Rafhan [Custard]..........................................................................................................................1
Acknowledgement.......................................................................................................................................5
1.1 HISTORY OF COMPANY................................................................................................................6
1.2 About the Product.......................................................................................................................7
1.3 Industrial Products.......................................................................................................................8
2. OBJECTIVES OF RAFHAN BESTFOODS..................................................................................................9
2.1 Vision...........................................................................................................................................9
2.2 Mission Statement.......................................................................................................................9
2.3 Core Values..................................................................................................................................9
3. Consumer Behavior.......................................................................................................................10
3.1 Cultural Factors..........................................................................................................................10
Culture...............................................................................................................................................10
Social Class.........................................................................................................................................10
3.2 Social Factors.............................................................................................................................10
Word of Mouth..................................................................................................................................10
Family................................................................................................................................................10
3.3 Survey........................................................................................................................................11
4. Defining Value...................................................................................................................................14
4.1 Segmentation............................................................................................................................14
Geographic segmentation.................................................................................................................14
Demographic Segmentation..............................................................................................................14
Psychographic Segmentation.............................................................................................................15
Behavioral Segmentation...................................................................................................................15
4.2 Market Targeting.......................................................................................................................16
Evaluating Market Segments.............................................................................................................16
Selecting Market Segments...............................................................................................................16
 Undifferentiated Marketing...............................................................................................................16
Recommendations.............................................................................................................................16
4.3 DIFFRENCIATION........................................................................................................................17
Product Line Differentiation..............................................................................................................17
People Differentiation.......................................................................................................................17
Channel Differentiation.....................................................................................................................17
Image Differentiation.........................................................................................................................17
SERVICE DIFFRENCIATION..................................................................................................................18
5. Market Positioning............................................................................................................................18
5.1 SELECTING AN OVERALL POSTIONING STARTEGY......................................................................18
MORE FOR THE SAME............................................................................................................................19
MORE FOR LESS.....................................................................................................................................19
6. CONCLUSION.....................................................................................................................................20
7. SWOT ANALYSIS.................................................................................................................................20
7.1 STRENGTH..................................................................................................................................20
7.2 WEAKNESS.................................................................................................................................20
7.3 OPPORTUNITY............................................................................................................................21
7.4 THREATS....................................................................................................................................21
8. PESTEL ANALYSIS...............................................................................................................................21
8.1 POLITICAL...................................................................................................................................21
8.2 ECONOMIC.................................................................................................................................21
8.3 SOCIAL.......................................................................................................................................22
8.4 TECHONLOGY.............................................................................................................................22
8.5 ENVOIRNMENTAL......................................................................................................................23
8.6 LEGAL.........................................................................................................................................23
9. 4 P’S...................................................................................................................................................24
9.1 Product......................................................................................................................................24
9.1.1 Major Brand strategy decisions.........................................................................................24
9.1.2 PLC Product is at maturity stage in its life cycle.................................................................24
9.1.3 Product Mix.......................................................................................................................25
9.1.3.1 Convenience Product.........................................................................................................25
9.1.3.2 Product quality...................................................................................................................25
 9.1.3.3 Feature...............................................................................................................................25
9.1.3.4 Packaging...........................................................................................................................25
9.1.3.5 Logo...................................................................................................................................26
9.1.3.6 Brand name.......................................................................................................................26
9.1.3.7 Line extension....................................................................................................................26
9.1.3.8 Brand equity......................................................................................................................26
9.1.3.9 Consistency:.......................................................................................................................26
9.2 Price...........................................................................................................................................26
9.2.1 Pricing Strategy..................................................................................................................26
9.2.2 Cost Strategy......................................................................................................................26
9.2.3 Product Mix Pricing Strategy..............................................................................................27
9.2.4 Market penetration pricing................................................................................................27
9.2.5 Discount and allowance.....................................................................................................27
9.2.6 Segmented pricing.............................................................................................................27
9.2.7 Geographical pricing..........................................................................................................27
9.3 Place..........................................................................................................................................27
9.3.1 Analysis of Distribution Channels.......................................................................................27
9.3.1.1 Intensive Distribution Network:.........................................................................................28
9.3.1.2 National Discount Chains...................................................................................................28
9.3.2 Distributors Network Add Value to the Channel................................................................28
9.3.3 Channel Level.....................................................................................................................28
9.3.4 Channel Conflicts...............................................................................................................28
9.3.5 Vertical Marketing System.................................................................................................28
Administered VMS.............................................................................................................................29
9.4 Promotion..................................................................................................................................29
9.4.1 Marketing communication mix:.............................................................................................30
9.4.1.1 Advertising.........................................................................................................................30
9.4.1.2 Sales promotion.................................................................................................................31
9.4.1.3 Personal selling..................................................................................................................31
9.4.1.4 Direct Marketing................................................................................................................32
Acknowledgement

In the name of Allah, the foremost Gracious, the Ever Merciful. We initiate our

project by thanking the “Allah Al-mighty” who allows us to try that project in
the next phase of life. I feel the honour to present this report back to not
merely an educator but a mentor Mr Zeeshan Haider who inspired us together
with his innovative ideas and made us think during complete aspects.
Finally, we pay regards gratitude to our parents, as they and their prayers for
our success are always been a pillar of strength for us in our life.
 Rafhan Maize Products Co. Ltd
1. Introduction
Rafhan is a Pakistani food brand of Unilever and one of the biggest food brands in Pakistan.
The brand was started by the Pakistani Unilever for corn oil and desserts. It produces corn
oil, corn flour, custard, ice cream, jelly, and pudding. Rafhan brand was established by
Ingredion Incorporate (Formally Corn Products International USA) and was sold out in 1998
to Uniliver. Rafhan brand is also used by Rafhan Maize for the industrial selling.

1.1 HISTORY OF COMPANY

Rafhan Maize Products Co. Ltd. started its operations in 1952 as a pioneer maize processing
industry in Pakistan.
Hajji Muhammad Shafi (Late) was the founding father of the corporate. Hajji Muhammad
Shafi was an innovative person. He derived the corporate name (Rafhan) very tactfully from
his three sons.

 Muhammad Rafi
 Muhammad Hanif
 Muhammad Nisar

In 1952 the corporate was established on a small scale. At that point, it had been involved within
the manufacturing of corn products only. During their work, Mr. Shafi researched that the demand
for starch will increase in the future. Due to no rapid preparation of starch at that point so Mr. Hajji
Sharif decided to supply starch from corn. For this reason, he decided to import machinery from
abroad and decided to sell its 50% shares to any big company. So, an American firm called CPC
took 50% shares of Rafhan and in 1998 best foods took possession of the Rafhan thanks to which it
becomes Rafhan best foods. And in 2000 best is handy over to lever brothers. Thanks to which it
becomes Rafhan best food (Unilever Company).
In this way, the favored name of Rafhan is invented. Today name Rafhan is extremely popular
among people.
 1.2 About the Product

Rafhan may be a name that has gained popularity since 40 fine years of its existence and
individuals are loyal to the consumption of this particular brand only. It is the core reason
justifying its dominating market share in today’s time generating high sales revenue for
Unilever.
Unilever offers many various flavors (Vanilla, Strawberry, Banana, and Mango) of custard
so that there's more variety for the purchasers to settle on from. This satisfies the
‘variety-seeking buying behaviour’ where customers search for alternatives and more
alternatives to taste.
After thorough research via a survey, it had been concluded that Rafhan custard is more
popular and readily consumed as compared to other brands like National. The rationale
being that there are no changes within the quality and taste over the years, instead
more variety has been introduced to focus on all the segments. Through our survey, it had
been also assessed that rarely have the purchasers encounter a situation
when Rafhan custard wasn’t available within the market. This highlights Unilever’s sound
distribution. The retail price that has been quoted for Rafhan custard is economical for a
300 gm. pack for 40 servings is Rs. 85. This amount is affordable by most, of the
consumers, regardless of their income group/social class. The seven trusted brands in the
diverse product categories are as follows:

Rafhan: Custard, Jelly, Pudding, Ice-Cream Powder, Kheer Mix, Corn Flour, Glucose-D, Jams,
Corn, Canola and Sunflower Oils.

Knorr: Cubes, Yakhni, Soups, Noodles and Ketchup.

Energile: Flavored Drinks and Fiesta for Children.

Best foods: Mayonnaise and Sandwich Spreads.

Skippy: Ready-to-eat Jelly.

Glucose-D: Fortified glucose drinks

Cater Plan: Special range of products for hotels, restaurants, and caterers.
 1.3 Industrial Products
Textile, Paper, Corrugation, Confectionary, Pharmaceuticals, Chemicals, Baking, Beverages, Ice
cream, processed food, Tobacco, Foundry, Syrups & squashes, Poultry, cattle & fish feeds.
 2. OBJECTIVES OF RAFHAN BESTFOODS

Their objective is: customer satisfaction + people development + business practices + innovation and
learning = financial performance.

2.1Vision
 To be the premier provider of refined agricultural-based ingredients & products in the
region.

2.2Mission Statement
To grow business consistently through a positive relationship with customers to attain full
customer satisfaction and to bring continuous improvement by adopting those business
practices which add values to our customers, employees, and shareholders.

2.3Core Values
1. Integrity
2. Excellence
3. Respect
4. Financial Success

3. Consumer Behavior
3.1 Cultural Factors

Culture

A cultural shift has taken place concerning the dessert. In Pakistan, with the
evolution of personal TV channels, there are many food-related channels. The
cooking shows have changed the way a standard housewife want to cook meals, make
dessert for her family. With this shift, housewives have now started making continental,
fusion recipes. Dessert has come an extended way, from having ‘kheer’ and ‘gajar ka halwa
people are more inclined to undertake out new desserts. Custard not only is employed in
traditional desserts also has usage in modern recipes. Rafhan Custard being the
market leader by an enormous difference takes its edge and provides the housewives with a
perfect sort of flavours to assist them to make the desserts of their choice.
Social Class

Irrespective of the Social Class custard is consumed and loved by all. The usage may vary from
class to class, but the product in itself is a must-have in every household belonging to any social
class. Rafhan Custard, taking this into account has packaged their product in a way that attracts
buyers belonging to any social class.

3.2 Social Factors

Word of Mouth

Being the oldest brand in Pakistan for custards, Rafhan has grown younger by the day
and has placed itself together of the foremost trusted brands of any household. Having been
around for 40 years, serving many generations of families, Rafhan’s popularity has
increased by word of mouth too. A satisfied consumer will tell  people in her own
community and help spread the word about the merchandise.

Family

Family members can strongly influence the buying behaviour of any person. Rafhan has served
generations for over 40 years, and the tradition has been transferred to the young by the wise
ones to use Rafhan Custard.
3.3 Survey

We surveyed to ask housewives about the dessert they like, the brand they prefer and buying
frequency.

Survey Questions Percentage %

Are you fond of desserts?          

  ●        Yes 94

  ●        No 6

What sort of dessert do you prefer to eat?

  ●        Ice-cream 31

  ●        Cake 25

  ●        Custard/Trifle 32

  ●        Halwa/sweetmeat 0

  ●        Chocolates 13

 Which name comes to your mind when you hear the word ‘custard’?

  ●        Rafhan 94

  ●        National 6

  ●        Any other: ____________ 0

How frequently do you purchase custard?

  ●        Weekly 0

  ●        Monthly 31

  ●        Occasionally 44
  ●        Once in a while 25

Which flavour of custard do you prefer to consume?

  ●        Vanilla 81

  ●        Banana 0

  ●        Strawberry 19

  ●        Chocolate 0

  ●        Pistachio 0

In your opinion, which of the following age group prefers consuming custard the most?

  ●        Kids 31

  ●        Teenagers 19

  ●        Adults 0

  ●        Senior citizens 13

  ●        No age limit 38

Did the ‘Rafhan custard you’ ad appeal to you, resulting in its purchase?

  ●        Yes 56

  ●        No 44

Do you purchase ‘Rafhan’ custard on impulse?

  ●        Yes 63

  ●        No 38

Given a choice, would you like to purchase any other custard brand other than ‘Rafhan’?

  ●        Yes 13

  ●        No 56
  ●        Unsure 31

 Do you want ‘Rafhan’ to introduce new flavours

  ●        Yes 44

  ●        No 56

How do you rate the price that is quoted for a standard pack of ‘Rafhan’ custard?

  ●        Premium-priced 19

  ●        Economical 81

  ●        Low 0

While purchasing ‘Rafhan’ custard, do you give precedence to its ingredients or nutritional facts

●        Yes 50

  ●        No 50

Which of the following mediums triggered your purchase of ‘Rafhan’ custard?

  ●        National television 50

  ●        Word-of-mouth 44

  ●        Print media 6

  ●        Billboards 0

  ●        Radio 0

Did you ever encounter a situation when ‘Rafhan’ custard was not available in the supermarket?

  ●        Yes 19

  ●        No 81

How would you classify your purchase of ‘Rafhan’ custard?

  ●        Preferential/Brand loyalty 56

   ●        Habitual 19

  ●        Lack of substitutes available 25

                   

4. Defining Value

4.1Segmentation

Geographic segmentation

World region or country:

Asia, Europe, Middle East, U.S

Country region:
East, West, North, South

City or Metro size:

Major cities, Mainstream cities

Density:
Urban, suburban, Exurban

Climate:
Northern, Southern

Demographic Segmentation
Age:
Under 6, 65+years
Gender:
Male, Female

Income:
Aspirers, Seekers, Strivers

Occupation:
Homemaker, Student, Manager, craftspeople, Professional and Technical

Education:
Literate, Illiterate

Nationality:
Asian, European, U.S, Canadian, Middle East

Psychographic Segmentation
Social Class:
Upper-Lower, Upper-Middle

Lifestyle:
Strivers

Personality:
Gregarious, Ambitious

Behavioural Segmentation
Occasion:
Regular, special Event, Holiday, Seasonal

Benefits:
Quality, Economy, Convenience
User status:
Ex-user, potential user, first time, regular user

User Rates:
Light user, medium user

Loyalty status:
Strong

Readiness stage:
Aware, interested, desirous

Attitude toward product:

Positive

4.2Market Targeting

Evaluating Market Segments

Rafhan Custard caters to young mothers aged 25-35 years, belonging to socio
economic class A-C, located anywhere in Pakistan. For evaluation, we will say that since
Rafhan Custard considers itself as a consumer product for everybody belonging to any
age group

Selecting Market Segments

The buying decision is formed by the housewives to bring home the healthiest and therefore
the best product for his or her family. Rafhan Custard primarily focuses on the housewives
buying their products. This statement that housewives are primarily the target  is additionally
highlighted altogether in their advertisements.

Undifferentiated Marketing

Since Rafhan Custard may be a product for all. It’s marketed with a standard need instead of

a differentiated one. The common need of their target market is to possess dessert and
that is what Rafhan Custard provides.

Recommendations
Rafhan must also consider individuals living alone as their target market too. Since
Rafhan Custard is a simple to form dessert, individuals living independently can
easily make it. A distinct segment marketing campaign to draw in such users are often run.
The viability of this segment is that, with these telecommunication companies, MNCs, Oil
& Gas companies coming in Pakistan we see tons of kids moving far away from
their home towns to figure and sleep in other cities which may be a thriving segment to
target.
Rafhan should also target senior citizens; they ought to follow a distinct segment marketing
strategy. Rafhan can penetrate the market by projecting itself as a healthy and suitable brand
for the elderly.

4.3 DIFFERENTIATION
Rafhan differentiated from its competitor on many levels that provide superior value to target
customer.
  Product Line Differentiation
 People Differentiation
 Channel Differentiation
 Image Differentiation

Product Line Differentiation

Rafhan Custard has brought a lot of flavours for target customers. It satisfies the sweet tooth of
our customers of every age and every class. It contains various minerals and most important they
use pure dairy products and natural food colour. Moreover, they are gluten-free which is why it
is not fermented easily and for people who are allergic to gluten then Rafhan custard is best for
these people.

People Differentiation
Rafhan has an enormous number of workers that are profoundly educated and trained. In,
Pakistan and America generally workers are chemical and substance engineers. They are
exceptionally taught, astute, and experienced individual. They are maintaining this business
effectively for quite a while.

Channel Differentiation

Rafhan reaches their Custard item to the client through their master market salesperson and
transportation. So that their item is much accessible to their particular clients.

Image Differentiation
Rafhan logo is entirely unexpected from its competitors that are significantly acknowledged by
its clients. Thus, clients effectively distinguish them in the market which is another powerful
benefit for Rafhan Custards

SERVICE DIFFRENCIATION
Another benefit for this Rafhan Custard is better assistance for its clients from its competitors.
They give 24 hours hotline administration. Excellent checking is keeping up for its clients. Its
Marketing division and public relation are working together for discovering client’s new interest
and reaction toward their item
 5. Market Positioning

5.1SELECTING AN OVERALL POSITIONING STRATEGY

The full positioning of a brand is called brand value positioning. All the benefits upon
which the brand is differentiated and positioning. The value proposition table shows the
product positioning of Rafhan custard is shown given below

PRICE

MORE THE SAME LESS

LESS

MORE FOR MORE MORE FOR THE SAME MORE FOR LESS
THE SAME
BENEFIT

SAME FOR LESS

MORE

LESS FOR MUCH LESS

MORE FOR THE SAME

Rafhan custard has the best quality than National custards and Shan custards while the price of
Rafhan custard is comparatively the same as national and Shan custards. 200gm custard of
Rafhan is 83 rupees and national and Shan custard price is same as Rafhan custard round about
82 rupees. While it provides more minerals and gluten-free custard. While Rafhan custard is
present everywhere means that Rafhan has done intensive marketing distribution of Rafhan
custards. So Rafhan gives more quality and advantage than competitors at the same price.

MORE FOR LESS

Rafhan custard has provided a lot of benefit for low cost than the international competitors.
Rafhan is one of the best organizations that provide such rich flavours of custard and it uses all-
natural product whether it is dairy or essence or colour. Moreover, it not uses any of the material
that is allergic to anyone. In Pakistan, it is one of the products in the custard product line that is
available in every nook and coon of Pakistan. Besides all of these advantages, Rafhan custard
offers less cost than competitors they charge approximately 360-560 rupees for 200gm custard
whereas Rafhan custard offer 83 rupees for 200gm.

6. CONCLUSION

The appearance of purchaser food items has acquired a massive change in the field in the
consumer food habit. Rafhan has done well to upgrade its customer’s faithfulness working as a
market challenger in its industry. Their items and quality rely upon their experience and
effectiveness. Rafhan accepts the quality that prompts great business and a great turn of events. It
has segmented the market based on certain clustered preference deploying a multi-stage
segmentation approach to meet the individual’s needs of consumers. Offering new item would
likewise close its current items holes generally guaranteeing fulfilment and reliability. In our
report, we address the Marketing Strategies through segmentation, target marketing and
positioning of Rafhan Pakistan.
7. SWOT ANALYSIS

7.1 STRENGTH

 Rafhan Custard has the best quality so it has no competitors in this field.
 Rafhan Custards always get positive remarks from the target market because the qualities
they offer are far better than their competitors.

7.2 WEAKNESS

 The packaging criteria of Rafhan custard is not up to the mark they save packaging cost
because it is harmful during export
 The production level of Rafhan custard is up to mark, as the demand is very high in the
market, so Rafhan custard doesn't satisfy the need of customers

7.3 OPPORTUNITY

 Custard range of Rafhan is good in quality so it should do brand extension

 Rafhan custard should segment their market toward the Middle East

7.4 THREATS

 Rafhan custard target globally so it is facing strong competition with Asian countries due to low
cost and high quality
 The main raw material for the production of the Rafhan product line is corn so whenever corn
production hit a natural crisis so the product may be affected
 8. PESTEL ANALYSIS

8.1 POLITICAL
Rafhan has made extra exports to increase export volumes by enhancing its presence in the
global markets to earn valuable foreign exchange. Due to the uncertainty of government policies
and increasing prices of taxes Rafhan is suffering from higher import duties. The Middle Eastern
market continued to remain the major buyer of our products due to geographical proximity and
traditional business relations. There is a big potential and growing demand in these markets
particularly in the food business which your Company plans to exploit further

8.2 ECONOMIC
At the point when you work globally then the economy has a significant part that could impact
your productive business. The worldwide economy straightforwardly affects global
organizations. At the point when economy changes then deals and benefit diminishes. As Asia is
the driving wellspring of income of Rafhan Maize, so Rafhan is very solid in such a manner. On
the off chance that you need to be steady and don't have any desire to impact by monetary factors
then you ought to have security in key business sectors and your business has enormous broaden.
Rafhan has prevailing to support its business income yet in addition accomplished development
of 2% in income, regardless of pandemic and intense financial condition. Expanded deals by 2%
were chiefly owing to increment in deals cost. The gross benefit additionally developed by 9%
and after-charge overall gain by 12%. Return on value was 37.78% and the organization kept a
decent harmony between profit payout and maintenance of benefit for speculation to improve
business capacity. Rafhan Maize Co. can expect business development in devolving Countries
like Pakistan, as these nations fill as far as shopper merchandise market size and worth.

8.3 SOCIAL
Social elements enormously affect global business. As society and social components are firmly
related to worldwide business. So, as we probably are aware culture and society fluctuates from
the area. As Rafhan is a worldwide brand, so it is significantly affected by friendly factors.
Social variables straightforwardly affect buying force of the client and which item is popular. As
we probably are aware each area has an alternate taste and needs so Rafhan is one of the brands
that address the issues of the multitude of clients of the district by giving a wide scope of the
item. Rafhan likewise produces its commercial and showcasing procedures as per the distinctive
area. It assists Rafhan with driving deals and benefit. Rafhan can develop through items that
straightforwardly address purchasers' expanding interest in refreshing items. Moreover, rising
tree hugger practices present a chance for the organization to draw in more customers by
improving its ecological effect
 8.4TECHNOLOGY

The company has embarked upon joining the ERP revolution by implementing SAP. This
implantation of Information Technology in the business process would provide a cutting edge in
competitiveness. The diversity in the product range is the hallmark of its long-term business
strategy. The company business is segmented into Industrial Food, Animal Nutrition and Health
ingredients.

The company has prioritized the implementation of information technology (IT). This has
enabled it to establish the communication link between its Rakh Canal and Cornwall Plants and
the regional sales office at Karachi.

The company is also in the process of implementing SAP business software which is the World
renowned ERP (Enterprise Resource Planning) solution being used by most of the top Fortune
Companies.

The main objective of SAP implementation is to further strengthen the effectiveness of

management over the company operation and to support the future strategic business growth of
the company. The company looks forward to WTO as an opportunity and challenge to business.

8.5 ENVIRONMENTAL

Rafhan recognizes that our strength lies in the strength of our customers and is committed to
providing them with quality and services which exceed their expectations. Rafhan is constantly
striving to achieve excellence in its Quality Assurance and Environmental Management Systems
as defined under laws. Furthermore, under Corn Products International and Company policy,
Rafhan is adopting possible measures for the protection of surroundings by constantly
monitoring emissions and other discharges from manufacturing facilities. The Company has
already implemented ISO-9001:2000 standards at all departments and facilities. Quality circles
are formed to highlight issues, study them and come up with workable solutions to continuously
improve the operations in the Company. Rafhan Implementation of Occupational Health, Safety
& Series (OHSAS) are in progress. Implementation of all these standards set by the Internal
Organization for Standardization will further boost their Company's.
 8.6 LEGAL

This factor includes more specific laws such as discrimination laws, antitrust laws, employment
laws, consumer protection laws, patent laws, and health and safety laws. Rafhan Company needs
to know what is and what is not legal to trade successfully and ethically. If Rafhan Company
trades globally this becomes especially tricky because each country has its own set of rules and
regulations. So Rafhan Company must be aware of any potential changes that can impact
business in the future. To Rafhan company must have a legal advisor or attorney to help with this
kind of thing.

9. Four P’S

9.1 Product
Rafhan, with a history of around 5 decades of providing quality and delicious desserts to
consumers became the market leader within the packaged desserts category in 2010.
The flavours available of the merchandise are vanilla, strawberry, strawberry, mango, and
banana in SKU’s of 21 grams, 47 grams, 120 grams, and 300 grams. An SKU net weighed
300 grams. The custard powder is convenient to cook  and may be enjoyed on its own but
also with plain cakes, jellies, and fruits. It’s a product that's found in every household.
Rafhan custard powder is packed during a plastic pouch packing which may be easily
opened and poured into a jar for reuse. The pack clearly labels the ingredients and
nutritional facts of the merchandise. The manufacturing and expiry dates are
mentioned alongside the retail price of the merchandise. The recipe for creating custard is
clearly stated on the rear of the pack. It’s often augmented with recipes to form delicious and
yummy desserts with custard

9.1.1 Major Brand strategy decisions

Rafhan may be a brand that nearly most is conversant in. Its brand equity is high and has
gained customer loyalty over the years which its competitors are still working upon in
their line of desserts. The brand’s image is reliable and trustworthy among  the
purchasers has developed a robust emotional bonding with them. Its presence through
generations during a household adds value to the customer perception. Rafhan is
strengthening this image through building this bond that their products are here for long  and
can stay here for long as a neighbourhood of the customer’s household.
 9.1.2 PLC Product is at maturity stage in its life cycle
Rafhan desserts are in Pakistan for 50 years now and are consumer’s favourite since the
start due to no solid competition. The merchandise has grown enormously in terms of sales
however Rafhan Best foods and Unilever didn’t put up much of a show in evolving  the
merchandise in terms of arising with new flavours or sorts of desserts. Hence the desserts
are during a mature stage and are the consumer’s favourite from only a few options
available within the local market.

9.1.3 Product Mix

Rafhan Product Mix

Thickeners Rafhan
Desserts
Cooking Oil

 Custard (4 Variants)
 Corn Flour  Rafhan Corn
 Jelly (5 variants)
Cooking Oil
 Ice Cream Mix
 Pudding Mix  Olive Oil

9.1.3.1 Convenience Product

Rafhan custard is one of the products that customers buy frequently, immediately and with
minimal comparison and buying efforts marketer’s place Rafhan custard in many locations to
make them readily available when customers need or want them.
 9.1.3.2 Product quality
The quality of Rafhan custard is beyond the thinking that bears on its ability to satisfy stated or
implied customers need. So total quality management keep working on Rafhan custard to
improve more quality than it is now. As far as performance quality is concerned Rafhan custard
blow the mind of people due to its rich creamy taste.

9.1.3.3 Feature
Rafhan was the one in Pakistan who introduced custard with diversification. It is one of the best
custard production company. It is one of those that offer custard to one who is allergic to gluten
and Rafhan custard is gluten-free that is why its expiry date is long-lasting because protein is
completely demolished in it.

9.1.3.4 Packaging
Rafhan Packaging is attractive and it protects the food in that. The Packaging is made of
cardboard so it is environmental free. The product details are described in a very charismatic way
that gives all the information to consumers that they want to know. Rafhan uses bright colours
like vanilla custard they use the light yellow colour that describe the colour of custard after
making.

9.1.3.5 Logo
The logo of Rafhan is simple and eye-catching it adds personality to the brand. Rafhan logo has a
brand-customer connection. Rafhan logo is legal

9.1.3.6 Brand name

Rafhan brand name is very easy and easily recognizable and remembers

Rafhan brand name is quite different from other brands and it is easily extendable and it
translates in every language.

9.1.3.7 Line extension

Rafhan custard has done its line extension to a broad range of flavours to satisfy consumers need
and build strong customer relationships.

9.1.3.8 Brand equity

One of the main reasons for the strong brand equity of Rafhan is that it is always able to satisfy
its consumers and work hard to achieve customer satisfaction.
Its brand performance is remarkable because of brand strategy which shared values and
innovative ideas in the business with the help of corporate brand.
 9.1.3.9 Consistency:
Rafhan’s product mix is sort of consistent as all of the brands are of an equivalent
category i.e. foods and may be kept within the same warehouse and within the same
conditions. All of them are often distributed by single transportation mean and can also be
promoted to an equivalent audience.

9.2 Price
Rafhan Custard is the market leader by a huge difference. Their products are economically
affordable; they have 4 SKUs of their product the product is bought by customers belonging to
any social class A-C.

9.2.1 Pricing Strategy

Rafhan had done cost-based pricing they set the price o the cost of goods being sold. A fixed
profit figure is added to the cost of an item

9.2.2 Cost Strategy

In cost, Rafhan adds a fixed premium to the cost of producing the product. E.g. If the cost of
producing a unit is Rs.30 then Rafhan adds an Rs.10 premium on top of it and sell the product
for Rs.40. This Rs.10 amount is the perceived value of the product by the customers. Rafhan
only increases its price if there is an increase in the Raw Materials Price. E.g. If the cost gets
increased due to expensive raw materials from Rs.30 to Rs.35, Rafhan will still add the same
premium of Rs.10 as the perceived value hasn’t changed. Hence the product will be sold for Rs.
45.

9.2.3 Product Mix Pricing Strategy

The product mix pricing strategy of Rafhan is Product Line Pricing. The product line pricing
states the products are all consistent; Rafhan follows the same pricing strategy for all their
products. The price increase in Rafhan custard will be done alongside jelly and ice cream mix as
well.

9.2.4 Market penetration pricing

Rafhan has done market penetration which means to low tier price and Rafhan attract a large
number of buyers and gain a competitive advantage on your competitors.

9.2.5 Discount and allowance

Rafhan has given a functional discount to a member who does marketing function for another
member of the channel of distribution. Rafhan also give promotional allowance to one who helps
them in promoting their product
 9.2.6 Segmented pricing
Rafhan has also done Segmented pricing in under product form pricing and location-based
pricing

That the price will be according to product and according to geographic location means that price
very from region to region

9.2.7 Geographical pricing

Rafhan has done Geographical pricing because as it is a multinational company so it sets price
according to the economic conditions of that region

9.3 Place
Place involves making a product available to the ultimate consumer with the assistance of
suppliers and resellers. This supply chain consists of upstream and downstream partners
including suppliers, intermediaries. This process of creating the products available from the
manufacturer to the ultimate consumer requires the corporate to manage its Value Delivery
Network, which may be a network made from the supplier, distributor and ultimately
customers who partner with one another to enhance the whole system.

9.3.1 Analysis of Distribution Channels

Rafhan adopts two types of distribution methods:

9.3.1.1 Intensive Distribution Network:

Rafhan distributes through their designated distributors, who are restricted  to work
in their assigned territories. They need the responsibility to form sure that the merchandise
is available in the least shops. This network spans to all or any of Pakistan encompassing
rural and urban regions.

9.3.1.2 National Discount Chains

They are also supplying Rafhan products to large chain stores directly to cater to their large
quantity requirements like MAKRO and METRO.
 9.3.2 Distributors Network Add Value to the Channel
The distributor’s expertise, specialization and scale of operation help Rafhan to
distribute their products available throughout the region instead of using their own
distribution facilities. Distributors affect the economy of efforts, by reducing  the amount
of contacts, explained with the figure

Customers

Distributor
Unilever Customers
1

Customers
Number of contacts

M+C=1+3=4

M = Manufacturer, C = Customers and D = Distributors

9.3.3 Channel Level

Rafhan uses indirect marketing channels (more than one distributor to distribute its
products). The channel isn't complex because the flow of products, ownership, payment and
therefore the information is merely from the distributor’s network.

9.3.4 Channel Conflicts

As Rafhan is selling at lower prices to chain stores that wish to MAKRO directly,
horizontal
conflict occurs between distributors and chain stores because they sell at lower
prices,
enabling retailers to get from these chain stores.

9.3.5 Vertical Marketing System

Rafhan acts as a unified system; it's the facility to dictate prices, conditions to be a
distributor by meeting the terms and conditions of the corporate because the order
processing is done by paying advance cash deposits within the company account to
receive the products.
Administered VMS
As Rafhan has the Administered VMS it enables them to hunt shelf space and sets their
own prices with the rise of staple prices, they're the trendsetters.

Marketing Logistics
Rafhan goods are physically distributed exceptionally well because the distributors' network
is required to form sure that Rafhan custard is out there in every retail outlet, it gains a
competitive advantage by providing the merchandise to each customer who asks for Rafhan
custard enabling tremendous visibility of the merchandise .

Warehousing
Rafhan has their warehouses where they keep their finished goods and handover them to
their distributor's Transportation.

Rafhan Custard Powder

Their transportation channel supplies the finished products to the distributors and to
MAKRO, METRO and Hyper store .
Recommendations
• Rafhan can increase its distribution by increasing the number of distributors throughout the
region because the distribution network is going to be wider.
• As Rafhan relay on the distributors for distribution, they ought to have taken steps to
survey that its product is out there at every retail outlet .

9.4 Promotion
The need for a firm to promote arises when it has to create awareness of its product or product
line amongst the audience. This is not restricted to the introductory stage of the product lifecycle
where the firm has to develop its identity, but can also be used in the decline stage where the
firm believes that it needs to remind the customers of the product. Promotion is essential at all
stages as long as the product exists in the market. It leads to higher purchasing power and brings
in favourable sales revenues. However, its efficiency depends on the perfect blend of promotion
mix whereby, a firm uses different tools such as; advertising, public relations, sales promotion
and personal selling to build strong customer relationship.

Rafhan has strong goodwill in the market today which is reflected by the decades of success that
it has been enjoying. Currently, Rafhan custard is in its maturity stage where promotion does not
necessarily play an important role in soaring demand as most of the population is aware of the
product. However, to stay abreast with the recent competitors that have entered the market such
as National Foods, Rafhan needs to continue promoting its custard powder aggressively.

Promotion is done based on personal and non-personal mediums. The tools used by Rafhan
custard comprises the following

9.4.1 Marketing communication mix:

9.4.1.1 Advertising
This is classified as ‘above the line.’ The core reason why any firm would commonly opt for
advertising is sole because it can reach masses at a low cost per exposure. People spread across
rural and urban areas viewed the ad of Rafhan custard and it instantly sent a message that this
product is available in the market. Anything that is visual leaves a long-lasting impression on
one’s mind. Rafhan has been successful in making its broadcast ads quite vibrant and full of
music, and it has indeed paid off via brand loyalty. By far, Rafhan is dominating the industry
and generating high-profit margins. Of course, the more one uses visuals, colours and sounds, the
more the overall cost of advertising shall rise. However, Rafhan can afford to incur these costs
after its concrete standing in the market. The negotiation which is where you are persuading the
consumers to buy your product involves rational or emotional appeal. Rafhan is using emotional
appeal as its ad depicts special occasions such as; birthday parties, Eid, get-togethers where
people are sharing their happiness by eating custard. APNA channel is usually seen promoting
the product. This spreads a message of solidarity and people are inevitably going to associate
happy occasions with Rafhan custard.

Audio advertising has also been used as the jingle that says ‘Rafhan custard yo’ is very pleasant
to the ear and if one hears it numerous times then there are likely to purchase. With every launch,
they changed the lyrics of the jingle and this highlights their uniqueness. The ad also gives a
detail of the various uses of custard and this has enhanced its usage rate such as; custard can be
mixed with fruits, topped on a cake, blended in milk or eaten with jelly. A few years ago, Rafhan
used newspapers and magazines as a means of spreading awareness; however, these have fallen
short with the inculcation of broadcast ads which is quicker and more effective in conveying
messages across the region.

9.4.1.2 Sales promotion

This is classified as ‘below the line.’ Initially, Rafhan was slightly apprehensive about the launch
of enhanced/new custard powder flavours. It wasn’t sure whether they will be accepted by the
customers or not. Under such circumstances, it used the strategy of offering free samples to
people by placing kiosks near popular supermarkets. This personal communication was an
effective way of letting people taste the new flavours before making the actual purchase. The
authentic feedback of the users was also evaluated for further improvement. Besides this,
previously Rafhan custard was offering free jelly sachets along with the package to promote its
demand. Another scheme that was introduced was the lucky draw contest called ‘birthday
bonanza’ where customers were rewarded through balloting after the submission of two empty
wrappers.

Upon winning, Rafhan celebrated the birthday of the winners and it was later aired on television
on different channels. This created excitement amongst the customers and triggered a purchase.
It has been proven that such schemes truly work as it plays the role of an attraction-grabber.

 Print Media: Rafhan ads are seen everywhere in various newspapers and magazines
around the world.
 Point of Purchase Advertising: Posters and stickers can be seen displayed in various
stores.
 Television Commercials: This is the most common platform that they use, these ads are
better able to reach the maximum number of the target audience, more so than the other
mediums of advertising.
 Outdoor Advertising: This includes posting ads on billboards and hoardings. Rafhan
makes sure that their ads can be seen everywhere you go.

9.4.1.3 Personal selling

Since Rafhan is a worldwide company, they have representatives around the world. These
representatives reach the customers and create awareness among them about a new product or
service and sell the products to the customers. These representatives build relationships with the
customer and promote the product to different customers within the regions they work.

There are more marketing communication strategies that the company uses. A company must
have a few of them up to its sleeve. Rafhan is a good example of a company that chooses the
proper marketing communications. The company has successfully implemented all its
communication strategies. This has helped the company in gaining customers and also
maintaining a good rapport with the potential customers.

9.4.1.4 Direct Marketing

Direct marketing can be used in many ways, just like advertising. It does help when the company has
partnerships with various event planner, catering, restaurants, and multinational organizations. Also,
when a customer orders a custard, the only brand the restaurant offers is made by the company itself. This
forces people to buy Rafhan custard brand only. By doing so, the company forces out other competition.
Lastly, the company sponsors various sporting events around the world.