COMSATS INSTITUTE OF INFORMATION & TECHNOLOGY

PROJECT REPORT Topic: Marketing Strategy for Failed Product Youngs Food’s KETCHUP

Group Members: Tariq Yousuf Sana Munir Midhat Batool Atif Talal Lodhi Irfan Zafar Chishti

Submitted to: Ms Aziza Munir

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TABLE OF CONTENTS
COMPANY INFORMATION................................................ .............5
BOARD OF DIRECTORS ................................................. .........................5 COMPANY SECRETARY ................................................ ..........................5 AUDITORS ................................................................... ..............................5 REGISTRAR ........................................................................................ .......5 BANKERS.................................................................................. ...................5 AUDIT COMMITTEE ........................................................... .....................5 CHIEF FINANCIAL OFFICER ................................................. ................5 COMPANY MANAGEMENT ......................................... ...........................6

Vision and Mission statement............................................................ ..7
Vision Statement........................................................... ................................7 Mission Statement:.................................................................................... ....7

Company’s Product List........................................................ ..............8
Spreads....................................................................................................... ....8 Condiments............................................................................................ ........8 Spreads:............................................................................... ..........................8

Product Failure................................................ ..................................14 Failed Product of the Youngs Food Company.................................15
Current position of the company .................................... ..........................15 Introduction........................................................................................ .........15
Methods of Portfolio Planning...................................................................16 BCG Matrix of Young food.........................................................................18

Marketing Strategies:....................................................... ..........................19
Marketing Strategy Adopted by Youngs Food Company:..........................19 Growth Strategy:..........................................................................................20 Market penetration......................................................................................21 Market development....................................................................................21 Product development...................................................................................21 Diversification..............................................................................................22 Our Proposed Marketing Strategy:.............................................................23

COMPETITORS AND CONSUMER ANALYSIS:.........................24
COMPETITORS:........................................................... ............................24 Competitor’s Actions over New flavors:........................................... .........24 Competitors Actions over Advertisements: ............................. .................25 Competitor’s Actions over Use of New Technology:.................................25 Consumers............................................................................... ....................26
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Satisfaction................................................................... ...............................26 Attraction through Advertisements: .............................................. ...........26

Business Feasibility:................................................................ ...........28
Business Feasibility of applied marketing strategy:.................................29

Recommendation and Conclusion....................................................30

Corporate Philosophy
We believe that our organization is responsible to our Creator, our People and our Business Partners. We are dedicated to provide our customers with Halal and Healthy food products that are fresh and continually improving in Hygiene, Nutrition, Taste and Convenience. We pledge to contribute to the betterment of environment and culture in the communities where we produce and distribute our products. Beginning... Present... & Future Young's (Private) Limited formerly Young's Food Products was established in 1988. In the beginning we introduced Mayonnaise, Soy Sauce, Chilli Sauce and Vinegar. The first ever commercially produced and distributed Chicken Spread was launched in 1989. The Young's brand family continued to grow with the introduction of Sandwich Spread, Chocolate Spread and Natural Bee Honey. Young's brand has also proved its dynamism with the launch of Tomato Ketchup. We are thankful to the millions of consumers who have reposed their confidence in our products and continue to give us patronage since our beginning in 1988. Today we enjoy brand leadership and a strong distribution network across 125 towns in Pakistan. We also have presence in Bangladesh, Oceania, The GCC Region, Africa, Europe and North America. Plant Outline Young's (Private) Limited 3

Main Products : Mayonnaise. Chicken Spread. 4 . Chilli Sauce and Tomato Ketchup. Natural Honey. Sandwich Spread.000 square feet Number of Employees : 350 approx. Soy Sauce. Facilities available for the Private Labeling to customer specification.Location : Karachi Pakistan Covered Area Facilities : Over 100.

Claremont Road. Habib Bank Limited REGISTERED OFFICE 12/CL-6.COMPANY INFORMATION BOARD OF DIRECTORS Chairman Managing Director / Chief Executive Directors COMPANY SECRETARY AUDITORS REGISTRAR BANKERS Bank AI-Habib Limited United Bank Limited Citi Bank NA. Muslim Commercial Bank Limited. Civil AUDIT COMMITTEE Chairman Members CHIEF FINANCIAL OFFICER Director 5 .

COMPANY MANAGEMENT Chief Executive General Manager Corporate Finance General Manager Finance General Manager Trade Marketing Executive Manager Human Resource Executive Manager Inventory & Logistics Executive Manager Procurement Executive Manager Engineering & Development Manager Production & Process Development 6 .

to maintain close and direct contact with our customers through consumer insights and dedicated service. Mission Statement: To deliver consistent quality to our customers using pure ingredients. authentic recipes and the best available technology. to promote professionalism at all levels through education. 7 .Vision and Mission statement Vision Statement To be a leader and take advantage of our leadership position in all food product categories. and also. training and development of human resources.

great taste and quick serving all in one food item. The French brand represents a range of tantalizing and mouth watering spreads for everyone. burgers and sandwiches. 500 ml (16 oz). • Mayonnaise Young's French Mayonnaise is an ideal taste enhancing dressing for salads. energy of wholesome natural ingredients. 8 . 300 ml. Available in glass jar of 250 ml (8 oz). Also in stand up Pouch of 1 kg and 500 gms. 925 ml (32 oz).Company’s Product List The Companys Products are divided into two broad categories: • Spreads • Condiments Spreads: Young's (Private) Limited Spreads represent the fast-paced lifestyles that demand convenience of usage.

Available in 300 ml and 500 ml glass jar.• Honey: Young's Natural Honey is 100% pure natural honey. • Sandwich Spread: Young's French Sandwich Spread is prepared from high quality vegetables and Young's French Mayonnaise. 9 . Citrus. Sidr and Swat varieties packed in glass jar of 250 gms and 500 gms. collected through Australian honey bees fed on the nector of a variety of flowers. Available in Acacia.

Healthy Chicken that offers convenience and nutrition for quick preparation of highly delicious chicken sandwiches. 500 ml & 925 ml glass jar. Available in 250 ml. 10 . 300 ml.• Chicken Spread: Young's French Chicken Spread is a unique blend of delicious Young's French Mayonnaise and Halal.

mangoes and spices. Lemon and Chilli flavors. Oriental and Western dishes and also have all the time to relish the rich mouth-watering aroma. Mango. • Pickle: Young's Shangrila Pickle are prepared from superior quality vegetables. Garlic. 11 . preserved in Mustard oil and Vegetable oil. appetizing and enticing smooth texture and presentation in the comfort of their homes.Condiments: Condiments Products are for the food connoisseurs who demand a home cooked full range of traditional Chinese. Available in Mixed Vegetable. Our brand offers appetizing and convenient range of cooking supplements for food lovers.

• Tomato Ketchup: Young's Shangrila Tomato Ketchup provides an ideal relish for use with all types of foods especially fried and broasted foods. Available in 315 gms glass bottle. 100 gms sachet . 275 ml. chicken and fish. 10 gms portion pack. • Soy Sauce Young's Shangrila Soy Sauce is prepared by natural brewing of soybeans wheat and salt. Available in 120 ml. and 750 ml glass bottle. 12 . It serves as an ideal marinating and enhancing agent for meat. 500 gms (Stand up pouch) and 1kg (Stand up pouch) aluminum foil packs.

13 . Available in glass bottle of 120 ml. • White Vinegar: Young's Shangrila Synthetic White vinegar prepared according to wellestablished hygienic standards is consumed lesser in quantity to achieve the desired results as compared to other synthetic vinegars due to its premium quality. This Hot Sauce further enhances the taste and aroma of Bar-B-Que. Asian and Continental food. Mexican. 275 ml and 750 ml.• Chilli Sauce: Young's Shangrila Chilli Sauce (Hot Sauce) is Prepared from the pulp of finest hot chillies of the Pakistan Dandicut variety.

Product repeat purchase. If there is an opportunity for this type of product. Better understanding of market segmentation. A number of excuses are believed to be true. 14 . it will typically require: • • • Better understanding of why customers are not buying. The economy is down. Product design and implementation. Product cross selling. Product distribution. The fundamental problem here is that the product concept was probably wrong. External events. the product failures results due to following basic causes: • • • • • • • • • • Product concept.Product Failure Roughly speaking. Potential Solution There are few solutions for this type of product if the product has been built without market research to figure out what causes people to write checks quickly. the attractiveness of the market was misjudged. Product servicing. No or poor competitive analysis was performed. Sales cycles are longer than we thought they would be. People are not buying. Product competitive positioning. this is a product that has had no success in obtaining any or paying customers. The product normally faces numerous larger and more established competitors. Product value proposition Product messaging. Generally. Better understanding of what value is for each segment.

and Develop growth strategies for adding new products and businesses to the portfolio. and the companys competitors are offering many new varieties like hot chili. The company must: • • Analyze its current business portfolio and decide which businesses should receive more or less investment. According to our perception. As Tomato Ketchup is coming only in one variety. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities. In this report. the reason of failure is due to the lack of variety in the brand. chili garlic.Failed Product of the Youngs Food Company The failed product of Youngs Food Company is Tomato Ketchup. we are going to describe their failed marketing strategy and then we are going to make our marketing strategy which is helpful for the company. whilst at the same time deciding when products and businesses should no longer be retained. 15 . Introduction The business portfolio is the collection of businesses and products that make up the company. that is plain ketchup. Current position of the company We are going to determine the current position of the company by using the BCG Matrix.

Eventually their growth will slow and.Methods of Portfolio Planning The two best-known portfolio planning methods are from the Boston Consulting Group (the subject of this revision note) and by General Electric/Shell. a product line or even individual brands . will become cash cows. four types of SBU can be distinguished: • Stars . Often they need heavy investment to sustain their growth.this provides a measure of market attractiveness By dividing the matrix into four areas. The Boston Consulting Group Box ("BCG Box") Using the BCG Box (an example is illustrated above) a company classifies all its SBU's according to two dimensions: On the horizontal axis: relative market share this serves as a measure of SBU strength in the market On the vertical axis: market growth rate . In each method.it all depends on how the company is organized. 16 . An SBU can be a company division. assuming they maintain their relative market share. the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses.Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition.

• Cash Cows . Build Share: here the company can invest to increase market share (for example turning a "question mark" into a star) 2. but may require substantial investment in order to grow market share at the expense of more powerful competitors. Divest: the company can divest the SBU by phasing it out or selling it .Cash cows are low-growth businesses or products with a relatively high market share.in order to use the resources elsewhere (e.g. These are mature.which ones should they invest in? Which ones should they allow to fail or shrink? Dogs . • • Using the BCG Box to determine strategy Once a company has classified its SBU's. a large dog and two. worth investing in. low-growth markets. 17 .Unsurprisingly. it must decide what to do with them. the company has one large cash cow (the size of the circle is proportional to the SBU's sales).so that they continue to generate the strong cash flows that the company needs for its Stars.Question marks are businesses or products with low market share but which operate in higher growth markets. 4. Question marks . Hold: here the company invests just enough to keep the SBU in its present position 3. Harvest: here the company reduces the amount of investment in order to maximize the short-term cash flows and profits from the SBU. Management have to think hard about "question marks" . Conventional strategic thinking suggests there are four possible strategies for each SBU: 1. smaller stars and question marks. if ever. investing in the more promising "question marks"). This suggests that they have potential. They need to be managed for continued profit . but they are rarely. Dogs may generate enough cash to break-even. In the diagram above. successful businesses with relatively little need for investment. the term "dogs" refers to businesses or products that have low relative share in unattractive. This may have the effect of turning Stars into Cash Cows.

18 .BCG Matrix of Young food The current position of the young food company lies in the star because there is healthy competition due to this reason market growth rate is high and market share is also high.

Marketing Strategies: The Company adopts various marketing strategies in an order to maintain a good position in the market. is a Growth Strategy. Tomato Ketchup. The general features of Growth Strategy are described below: 19 . These strategies are: • BCG Matrix • Growth Strategy • GE Matrix • Harvesting • Divestiture • Focus Strategy • Cost Leadership • Differentiation Marketing Strategy Adopted by Youngs Food Company: The marketing strategy applied by the Youngs Food Company for their product.

The Growth Matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. These are described below: 20 .Growth Strategy: The Growth matrix is a tool that helps businesses decide their product and market growth strategy. The output from the market matrix is a series of suggested growth strategies that set the direction for the business strategy.

There are many possible ways of approaching this strategy. Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. It is unlikely. including: • New geographical markets. for example exporting the product to a new country • New product dimensions or packaging: for example • New distribution channels • Different pricing policies to attract different customers or create new market segments Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. sales promotion and perhaps more resources dedicated to personal selling • Secure dominance of growth markets • Restructure a mature market by driving out competitors. advertising. Market penetration seeks to achieve four main objectives: • Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies. that this strategy will require much investment in new market research. It is likely to have good information on competitors and on customer needs. supported by a pricing strategy designed to make the market unattractive for competitors • Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing strategy is very much about “business as usual”. therefore. This strategy may require the development of new competencies and 21 . The business is focusing on markets and products it knows well. this would require a much more aggressive promotional campaign.

The company has applied the marketing strategy to maintain or increase the market share of Tomato Ketchup.requires the business to develop modified products which can appeal to existing markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. and sales promotion. it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risk. For a business to adopt a diversification strategy. They applied various competitive pricing strategies. Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. the Young’s Food Company has applied the Market Penetration Strategy. therefore. advertising. 22 . Under Growth Strategy.

bread spread and its categories. they can improve the sales promotion of the product. the categories of ketchup which are being launched as a new flavor in this product.Our Proposed Marketing Strategy: We propose that if the Company applies Product Development Strategy. but up to and estimate with having many consumers they are able to cover their cost. This can be done by launching new flavors in the product brand. in which existing product is being developed and launched in its already catered market. The Company should introduce flavors. like Tomato Ketchup Chili Garlic Sauce Chili Ginger Sauce Imlay Sauce Mexican Salsa Mango Chutney Cooking Paste 23 . The ketchup or sauce of their company got failed due to fewer flavors in this category. company can also be successful in retaining number of consumers in this section too. It requires a lot of cost for the launch of new flavors. By product development strategy. so this product can also take place in consumers sense of taste. As the company is having a huge sum of regular consumers in the category of Mayonnaise.

COMPETITORS AND CONSUMER ANALYSIS: COMPETITORS: After launching the new flavors in the existing brand product. so they are always looking for the new product. So competitors are being analyzed after the change in the product of one company. The responses and actions of competitors can be described by the factors below: Competitor’s Actions over New flavors: After launching the new flavors. competitors become dreadful about the new entry of product in market. 24 . which includes the total set of actions and responses taken by all firms competing within a market. Every consumer wants a change in their taste. the competitor’s behavior is very important. This means competitors have the idea that their consumers get diversified toward that particular product. They develop the feeling of consciousness that they might lose their customers. Competitor’s dynamics are taken in consideration.

as it is having a threat to lose consumers. Ketchup. consumers get tempted to buy that product. it is extremely difficult for any other product. still those consumers might take a trial of new product just because of being attracted by the advertisement. Young’s foods have also used a new technology for performing a product development in already existing product i. But after watching an attractive advertisement. Competitor could also seek for a development in its product by using a new technology. Even if there are regular consumers of young’s foods competitors. to take over that number one position in consumer’s mind.Competitors Actions over Advertisements: Once consumers have in their mind that a product is number one. 25 . Competitor’s Actions over Use of New Technology: As the technology is in advancement mode and many new products got success because of the use of new technology.e. At the use of new technology competitor again becomes dreadful. and tries to retain its consumers by various means. even if superior.

“a satisfied consumer is the best marketer”. Satisfaction After the fulfillment of their requirements they move to the stage of satisfaction. Attraction through Advertisements: Consumers’ behavior also changed when they get attracted towards the advertisement of any new product. This kind of behavior 26 . They are keen to know about the product and when the product is entering in the market they buy the product immediately. By having the variety of products and their substitutes the consumers has more choice to buy the products according to their income level as well as tastes. After the development of this product many flavors have been develop in the market.So the new flavor of young’s Food fulfills their requirements. Whenever the new product is developed with various changes the consumer’s attention diversified towards that product. The people of these classes are having different tastes . because they always wanted a change in their tastes.Consumers As the young’s Food Company targeted the middle and upper class. As it is said by Scholar. The purchasing power of this particular class is good enough to afford such add-ons with meals that are Ketchup.

As every one wants a change. The Company is retaining more consumers by providing added benefits. they get attracted and tries the new product.commonly find in numbers of consumers. in result of Young’s foods. company has established new market in new consumers. This has comforted the consumers and with added benefits or low prices. As these consumers are the main market of the company through which they have to earn their revenues. And company is retaining more consumers by providing added benefits. complete all the cost and budget. Consumers mostly show very positive behavior toward the launch of product or development of the new product. This is the reason hat they have launched new flavors. The regular consumers are the retained consumer. 27 . but after new flavors of ketchup in market. consumers have shown very positive response. so that consumers are buying the flavor of their taste. it might not satisfy them but still they wanted to have new things in their life. consumer always gets tempted towards showing a positive response. so company provides their best to the customers.

analyzing and evaluating information with the purpose of answering the question: "Should I go into this business?" Answering this question involves a preliminary assessment of both personal and project considerations. rather than on convincing investors and other partners to extend their support. The feasibility study should evaluate and analyze the following areas: • • • • • • • • Company Overview Product/Service Description Industry and Marketplace Analysis Marketing Strategy Distribution and Sales Strategy Operations Plan Development Plan Financial Estimates 28 . extraordinarily well documented.Business Feasibility: A feasibility study involves gathering. The feasibility study is a very important one. It is your first reality check. A feasibility plan should at least touch on many issues included in the final business plan. Since this is the case the study should be very carefully thought through. A feasibility study help entrepreneurs and their supporters judge and evaluate whether an idea is credible. A feasibility study helps you determine if your business idea should be implemented. The good news is that the stronger the feasibility study the easier it is to develop your business plan and the more likely it is that your business will succeed. Thus. Preparing a feasibility study requires a tremendous amount of research and thinking which often leads to significant changes in the original idea. The process of preparing a feasibility plan is a evaluation process of what could go wrong and what needs to go right for an enterprise to start and grow. and clearly written. but for the feasibility study the focus is on getting the information and analysis right and evaluating its coherence and the business idea feasibility. clarity and evidence are more important for the feasibility plan than convincing presentation.

To do this.000 2001 (Rs) 32.000 2002 (Rs) 28.000 2.000 2. we believe that there would be an increase in the net profit of the company’s product by 50%.000 20.000 20.000 After the implication of our proposed strategy.000 5. we must first look for the profit margins of the company in the previous years Table showing the Sales and Profit Margin of Youngs Food Tomato Ketchup (2000-2002) Sales Cost of sales Gross profit Taxation Net Profit 2000 (Rs) 30.000 7.000 10. 29 .Business Feasibility of applied marketing strategy: We are going to analyze the feasibility of our proposed strategy by considering the sales.000 2. expenses and profit margins of the product.000 25.000 4.500 3.000 8.

the company can also make advertisements in newspapers. They can afford the TV advertisements. They should adopt non printed media campaign strategy. the company must follow the following steps: • • • The company must introduce new flavors of Tomato Ketchup in the market by adopting the product development strategy. magazines. billboards They can also give free sampling of their products. like. • • • In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service in a way that will outsell the competition is critical. some are more important than others.Recommendation and Conclusion We recommend that in an order to create the demand of the consumer and boost up the sales. Of those many factors. The product should be readily available to the customers and for that it should be displayed in those shelves which are at eyelevel The company should increase their promotional campaigns by adopting both printed and non printed media strategies. It is of little value to have a strategy if you lack either the resources or the expertise to implement it. banners. fliers. However. giving discounts or through bundling etc. However. In the process of creating a marketing strategy you must consider many factors. because the company’s other products are going well in the market. in concert with defining the marketing strategy you must also have a well defined methodology for the day to day process of implementing it. it is not reasonable to identify 'every' important factor at a generic level. brushier. so that people can get to know about their products. Because each strategy must address some unique considerations. 30 . many are common to all marketing strategies. They can give incentives to the consumers. display cards. In printed media.

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