Strategic Management

Final Submission Report

On
TOPIC
Prepair by:
Muhammad Irfan 8741

Submitted to:
Sir Muhammad Irfan

Date: 16-Dec-2018

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 Table of Contents

Company Description ...................................................................................................................... 5

Mission/Vision ................................................................................................................................. 6
Code of conduct ............................................................................................................................... 6
Goals and objective .......................................................................................................................... 6
Situation Analyses ........................................................................................................................... 7
SWOT Analysis ............................................................................................................................... 8
Marketing Strategy........................................................................................................................... 9
Target Market & Segmentation ....................................................................................................... 9
Product Mix ................................................................................................................................... 10
Product Life Cycle ......................................................................................................................... 12
Competitor Analysis ...................................................................................................................... 13
K&N's Supply chain Strategy ........................................................................................................ 13
CSR, CSV and Sustainability Report............................................................................................. 15
Certification ................................................................................................................................... 16

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 Acknowledgement

First of all, we would like to thank Almighty Allah for blessing us with the courage, strength, and
ability with which we was able to complete this report successfully.

Furthermore, we would like to extend our special thanks and appreciation to our course instructor,
Mr. TAHA BIN HASAN for his constant guidance and encouragement throughout the semester,
and for making this report and incredible learning experience.

We have benefited a great deal while searching for the material and making the report and hope
that people will also benefit from it.

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 EXECUTIVE SUMMARY
The Idea behind the compilation of this report is to focus on the introduction a brand of FROZEN
FOODS in Karachi and international for the first time with the name K&N’s since there is no other
K&N’s brand in the market. K&N’s tries to cater all those people who are health conscious and
wants to enjoy this traditional and Fresh quality of Food products which gives the assurance of
having Fresh and Healthy Chicken, Beef and Fish K&N’s Products.strategy involves providing
for its customers with the best possible experience of having a fresh and range of food that they
never experience before, and to create fruitful relationships with them by delivering the products
at the supreme quality as per our promise, this will be accomplished by providing our customers
with the best and the most fresh possible Frozen.As discussed earlier our target market will be the
health conscious and opinion leading people of our society hence our competition will be with all
those places where other Meat sellers are available like the Local shops for meat and with some
brands like Dawn Foods etc. We are the first one to offer Premium Chicken and Beef shanks with
the good quality Fresh and Processed which differentiates it fromothers Frozen Foods seller and
manufacturer in the market.

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COMPANY DESCRIPTION
INTRODUCTION HISTORY: The year 1964, Pakistan was a young independent nation forging
ahead towards a dream, selfsufficiency in food production. Malnutrition remained a major problem
and one out of fourchildren died before attaining the age of five. 80% of the ailing children were
affected withdiseases caused by protein, vitamins and minerals deficiency. Poultry production, the
quickestand least expensive way of filling the protein gap was planned to overcome
malnutrition.Backyard poultry farming has to graduate to a more professional level.In January
1964, a young man, Khalil Sattar, still a college student, had a vision to foresee a needto establish
a poultry farm. His interest led him to start a broiler farm of 1, 000 chicks. Little hadhe known this
flock was to become the foundation stone of K& N’s? This was the simple,inspired and
nationalistic beginning of K&Ns with a single minded objective of providing abetter nutrition for
health and happiness of the nation.

K & N’s BACKGROUND K&N’s is the founding pillar and beacon for Pakistan poultry industry-
started in 1964 with asingle minded objective of providing better nutrition for health and happiness
of the nation.Building on years of poultry expertise, and a commitment to food-safety, K&N’s
integrated allpoultry production activities under one umbrella to ensure quality and food-safety by
managingand controlling all stages of productionIt is a marvelous food industry located at
Raiwind. It deals with poultry processing. K & N´sPoultry processing is integrated business
containing essential components like breeder farms,hatchery, and broiler growing farms, feed mill
and poultry processing plant. K & N’s is mainsupplier of eggs in Pakistan and is the biggest poultry
industry in Pakistan. Formerly K &N’sfood was M.ARTAL Poultry Int’l Private Limited.
M.ARTAL was Belgium base. It was registered in Holland. M.ARTAL Poultry processing plant
started work on August, 03, 1998.M.ARTAL launched their business projects in south Asia by the
name of M.ARTAL in Pakistan were Harry’s bread, Aiwa mineralwater, KFC restaurants and
poultry processing. Poultry processing was integrated business. Butunfortunately their projects in
Pakistan were failed. So first they sold Harry’s bread, then KFC,then Aiwa mineral water to Nestle
and at last poultry processing project to K & N’s foods onJanuary 2002. Now K &N’s foods poultry
processing business is flourishing day by day.Today with our undeterred commitment to food-
safety, customers repose confidence in us toprovide them safe and healthy chicken. Their trust in
K&Ns and endorsement as Pakistansfavorite Chicken honored us.

MISSION STATEMENT

Driven by its basic values in pursuit of perfection, K&N’s is committed to have superiorproducts
and unmatched service through devoted people and consistent development.

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MARKET ORIENTED MISSION
Providing the best hygiene and nutrition for the health and happiness of the nation being our
veryfirst promised makes us remain stick to our commitment to the customers rather look for
whatone may call better for one’s self. The increasing demand of our products all over the
countryexplains the worth; our promises are getting through our valuable customers.

K & N’s GOALS AND OBJECTIVES

K&Ns has set a single minded objective for providing better health and nutrition for the nation.In
order to achieve this objective K&N’ Built on years of poultry expertise, and a commitment tofood-
safety, K&N’s integrated all poultry production activities under one umbrella to ensurequality and
food-safety managing and controlling all stages of production.Four basic objectives of absolute
integrity, enthusiastic diligence, continuous improvement andhigh quality maintenance are at the
core of all operations which provide an impelling urge forattaining perfection. Driven by its basic
objectives in pursuit of perfection, K&Ns is committedto have superior product and unmatched
service through devoted people and consistentdevelopment

Code of Business Conduct:

Since the Company was founded, K&N’s business practices have been governed by integrity,
honesty, fair dealing and full compliance with all applicable laws. K&N’s employees worldwide
have upheld and lived this commitment in their every day responsibilities ever since, and K&N’s’s
reputation remains one of the Company’s most important assets today.
The K&N’s Corporate Business Principles prescribe certain values and principles which K&N’s
has committed to worldwide. This Code of Business Conduct specifies and helps the continued
implementation of the Corporate Business Principles by establishing certain nonnegotiable
minimum standards of behaviour in key areas.
The nature of the Code is not meant to cover all possible situations that may occur. It is designed
to provide a frame of reference against which to measure any activities.

• Complience with law.

• Conflicts of interest.
• Families and relatives.
• Corporate opportunity.
• Insider trading.
• Antitrust and fair dealing.
• Confidential information.
• Asset fraud protection.
• Gist meal and entertainment.
• Discrimination and harassment.
• Reporting illegal conduct

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SITUATION ANALYSIS

INDUSTRIAL ANALYSIS:

The Frozen Foods market in Pakistan enjoyed dynamic growth over the review period in both
volume and current value terms. Pakistan is one of the largest meat producer country and due to
the demography of Pakistan people love to eat the meat. Frozen meat become part of the culture
in Pakistan and multinational companies have maintained their standards over the years to provide
consumers with high quality Frozen Food Product, to insure this there is several inspection and
regulating company to insure thje quality and quantity for standardizes the product SGS inspection
plays a vital role to increase the buyer satisfaction on Pakistani products as the customers have
trust on SGS. Off-trade sales are higher than those of the on-trade but both achieved strong growth
over the review period. Frozen Foods Productsis non - seasonal categories in the market and their
sales peak in all seasons of Pakistan but it touch the peak in the month of Ramazan where all
people like to use these kind of product to save there time in Prays. Both K&N’Sand MEATONE
Frozen Meat in Pakistan which are highly regarded by consumers.
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of Frozen
Foods products.
The Government of Pakistan has reduced excise taxes to encourage Meat manufacturers and there
is no duty for Exporters that attract more people to invest in this business. The Government also
reduced other applicable taxes to promise more profit not only for Frozen Meat manufacturers
already in the market but also to attract potential Frozen Meat manufacturers to invest in Pakistan.

SALES ANALYSIS:
The development and introduction of a new product is an inherently risky venture. In an effort to
reduce the risks associated with new products, the forecasting of half year sales has become an
established practice within the marketing research industry. Forecasting sales of new products is
fraught with risks, and estimates can often be off the mark.

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SWOT ANALYSIS OF K& N’s
In order to gather useful information about its position in the market and commercial
viability,K&N’s use SWOT analysis to determine various factors which may improvise the
overallstandard, quality and brand equity while growing in competition to other production units
inPakistan.In its quality assurance cell, the company maintains a check and balance on methods of
salesdistribution, new business ideas and strategic options, such as entering a new market
orlaunching a new product in its product line, changing its suppliers and outsourcing its services.A
few points necessary to be included in this section are given in coming sections.

STRENGTH:

• The company is now a producer of its own unique type which produces various categories
of products segmented for different chunks of population while remaining in lowest costs.

• Along with the developed brand identity and trust reposed by customers, K&N’s has
established its name in international market as well.
• This is driven by a factor of self production plants which are self sufficient to produce
ingredients and helping materials by themselves for K&N’s finished products.
• Another factor is the strong supply chain through its distribution channels. These factors
are the basic strengths of our product inherited from the company setup.
• The unique taste and first time introduction in the markets have a vast scope in the product
line of its nature.

WEAKNESS:
• Though no company is a perfect in business activity performances yet pricing strategies
have been the pinching element in company’s market positioning.
• Though the products are cost effective as we take quality under consideration yet most of
the products are targeted for the upper class of society. We can use appropriate and
differentiated pricing strategy to avoid this weakness of.

OPPORTUNITIES
• As K&N’s majorly operates in Pakistan, a country where distribution of products is limited
to specific areas within an urban sector hence grooming their product of under such
circumstances has always been an opportunity for K&N’s.
• By improving their Distribution channels as well as pricing strategies for , can give a
robust increase in brand equity and can promote their product demand overall in the
market.

THREATS
• Threats are always there in poultry oriented firms so K&N’s keeps an eye on new
competitors in dealing with different products related to chicken and poultry.
• At present the only threat is the diseases spread amongst broiler chickens which can be
prevented by establishing medic control at breeding premises of company

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MARKETING OBJECTIVE
Our marketing objectives are to increase product awareness among the target audience.
Inform target audience about features and benefits of our product and its competitive advantage.
Increase the volume of sales up to the maximum level as much as possible during the current year.

K & N’s MARKETING STRATEGY

K&N’s is using the marketing concept as its current marketing technique stating that
“theorganization should be aware of the needs and wants of the target markets and should
bedelivering the desired satisfaction better then the competitors do in order to achieve
theorganizational goals.

Product Concept
This concept says that “consumer will favor products that offer the most quality performance
andfeatures and that the organization should therefore devote its energy to making
continuousproduct improvements.”K&N’s from the very beginning has focused on providing
better nutrition for the health andhappiness of the nation and we will be keeping the words as they
were before. Quality is ourvery first priority that will make us build strong and profitable customer
relationships.
TARGET MARKET AND SEGMENTATION
MARKET SEGMENTATION :
Following variables are going to be looked into to develop a marketing strategy.

Demographic:
Age: Above 5 years
Gender: Male & Female
Income: 50,000/-
Occupation: Any

Psychographic:
Social class: Upper class and Middle class
Any lifestyles and personality.

Geographical:
City: Urban Areas
For Exporting:
China, Thailand, Vietnam, UAE, Europe etc.
Behavioral:
It is how people perceive a specific product, in short psychological analysis of a product.
K&N’s is recognized as a quality frozen foods and therefore people eat it without any hesitation.

Occasion:
Regular Occasion, Special Occasion, Holidays and Seasonal Occasions.

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PRODUCT MIX:

Marketing decisions generally fall into the following controllable categories:

Product
Price
Place (distribution)
Promotion

Product:
Anything that can be offered to a market for attention, acquisition, use or consumption that
mightsatisfy a want or need. K&N’s products are below:
1. Frozen Processed chicken
2. Ready to coocked chicken

Price:
K&N’s is serving nation and international target market so set prices of their product with respect
to both markets.

Pricing Strategy:
K&N’s uses Market "Penetration"Price strategy for low initial price in order to penetrate the
market.

Reduce price in order to increase sales and to capture market share.

Focus on more customers.
Cut the price if sales will not increase accordingly.
Low prices must keep competition out of the market.

Place:
The distribution channel of K&N’s product is indirect marketing channel because this channel
contains one more intermediary level.Easily accessibility to product.Indirect marketing channel.
All products are available at departmental and super markets like NAHEED Super Market,
AGHAS, IMTIAZ etc
Place Strategy:
We use Exclusive place strategy as we have the Nesh target market.

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Promotion:
Advertisement:
K&N’s advertise through private TV channels at the Prime Time.
The product Slogan is “ Taste and Healthy Chicken ” is the frequently announce on TVC and
Billboards in order to remembrance of the product.

Print Media:
Two most common Print media are News Papers and Magazines

News Papers:
When deciding upon a newspaper in which to advertise, there are three physical criteria to
consider:
DISTRIBUTION, SIZE and AUDIENCE

Magazines:
Audiences can be reached by placing ads in magazines which have all defined geographic,
demographic, or lifestyle focus.

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PRODUCT LIFE CYCLE OF K&N’s
The Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four
stages in the life of the product. These four stages are the Introduction stage, the Growth stage, the
Maturity stage and the Decline stage. The following graph illustrates the four stages of the PLC:
There is no set time period for the PLC and the length of each stage may vary. One product’s entire
life cycle could be over in a few months. Another product could last for years. Also, the
Introduction stage may last much longer than the Growth stage and vice versa.

Introduction stage of K & N’s:

In the Introduction stage, K&N’s is launched and initially promote. Efforts are made for creating
its awareness in the market, inducing trial of the product. The costs is high, sales volume is low.

Growth stage of K & N’s:

In the growth stage K&N’s will experience rapid increase in sales volume and its competition
began to increase. People got more awareness about XPF and the increase in the competition leads
it to decrease prices.

Maturity stage of K & N’s:

When K&N’s will in the Maturity stage. The marginal costs of it will low in this stage, sales
volume will at the peak and most of the market will covered. There will be increase in competitors
which will enter in the market. K&N’s differentiation and features diversification will emphasize
to maintain and increase market share.

Decline Stage Of K & N’s:

This is the stage in which sales of the product begin to fall. Either everyone that wants to has
bought the product or new, more innovative products have been created that replaces that product.
The only way to increase sales during this period is to cut the cost of the product.

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K & N’S COMPETITIVE STRATEGY
K & N’s competitive strategy has following core elements which are kept in mind whiledeveloping
competitive strategy.
Important
We deliver highly valued benefits to our target customers in our products.
Distinctive:
We have no strong competitor and enjoy distinctiveness in the market.

Superior:
We are providing pure hygienic food in at comparable prices.
Communicable
The consumers can feel the difference in our quality, taste, hygiene and prices that are
communicable.

Preemptive:
Competitor needs a lot and lot of hard work to match our standard
Affordable:
Buyer can afford to pay for the difference
Profitable:
The difference is profitable both for the company and the customers.

Direct Competitors:

Direct competitors are those which offer same products and services with similar features and
deals and target to same target market as your business do. Customers often compare prices and
deals from these competitors. Direct competitors are:

MEAT ONE, DAWN FOODS

Indirect Competitors:
In direct competitors offer the similar products and services only in small number of areas, but
their target market may be anyhow clashes with your target market. such as the local market
shops of meat.

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K & N’S SUPPLY CHAIN STRATEGY
Product flow involves the movement of goods from a supplier to a customer, as well as
anycustomer returns or service needs, information flow involves getting orders. Supply
chainmanagement flows can be divided into three main flows
• K & N’s ultimate goal of effective supply chain management system is to reduce inventory
(with the assumption that products are available when needed)
• K & N’s supply chain management involves coordinating and integrating these flows both
within and among companies. Supply chain management (SCM) of K & N’s is the
oversight of materials, information, and finances as they move in a process from supplier
to manufacturer to wholesaler to retailer to consumer & updating delivering status, the
financial flow consists of credit terms, payment schedules, and consignment and title
ownership arrangements

Backward Integeration:
Backward integration is a form of vertical integration that involves the purchase of, or merger with,
suppliers up the supply chain. Companies pursue backward integration when it is expected to result
in improved efficiency and cost savings. For example, this type of integration might cut
transportation costs, improve profit margins and make the firm more competitive.

Forward Integeration:
Forward integration is a business strategy that involves a form of vertical integration whereby
business activities are expanded to include control of the direct distribution or supply of a
company's products. This type of vertical integration is conducted by a company moving down
the supply chain. A good example of forward integration is when a farmer sells his crops at a local
grocery store rather than to a distribution center that controls grocery store placement.

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Sustainability Report
• Research and Developemnt
• Sourcing of raw material
• Manufacturing
• Packing
• Distribution
• Consumer communication
• Human resource
• Enviroment protection

CSR Report
The company CEO says “We believe we can make an important contribution to society, by going
a step beyond cooperate social responsibility to create value through our core business both for
our stakeholders and society. We priortizer are of nutrition, water and rural development to create
share value”

The investment of K&N’s must be good for the countries where they operate, as well as good for
the company.Therefore, while corporate social responsibility and sustainability presents a set of
useful priciples and practices.

CSV Report
It begins with the understanding that for K&N’s business to prosper over the long term, the
communities that the company serve must also prosper
It explains how business can create competitive advantage, which in turn will deliver returns of
shareholders, through actions that sustainability address a social or environmental challenges.
K&N’s is positioned to CSV in three areas:
• Nutrition: the most important factor that the company have to provide good nutritions to
the animals mainly the birds. Own processing for the bird nutrition to avoid any un
necessary illness.
• Water: Agricultural employee, visiting farmers , to discuss farming methods that avoid
polluting ground water
• Rural area development: giving opportunity to inhance the living of the people lives in
rural area by developed the business oprtunities there.

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 Cerification

Halal
Chickens are Halal slaughtered by hand according to slaughter rules of The Shariah. Authentic
institutions have granted Halal certification to K&N's.

FSSC 22000:2013
Food-safety management system at K&N's is FSSC 22000:2013 certified. This international
standard ensures greater consistency and traceability of products, through continuous
improvement of processes, testing compliance through internal audits and management reviews,
assuring products consistently meet customer requirements of quality, food-safety and legality.

HACCP
K&N's further ensures food-safety by implementing the HACCP* (international food-safety)
System to produce its chicken and chicken products.

* HACCP (Hazard Analysis & Critical Control Points)— pronounced ‘hassap’— is an

international food-safety system for preventing microbiological, chemical and physical
contamination along the food supply chain.

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ISO 9001:2015
Quality management system at K&N's is ISO 9001:2015 certified. Through this internationally
recognized quality management system, K&N's is able to control and monitor quality specific
factors, which ensure consistency in its products and services while assuring customer satisfaction.

USDA
K&N's Foods USA, LLC, manufacturing facility, along with manufacturing practices, have been
investigated and found to be in accordance with the United States Department of Agriculture
(USDA) regulations. The manufacturing plant and products of K&N's Foods USA, LLC, are
USDA certified.
_________________________________THANK YOU_________________________________

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