A TA STE O F NAT URE

PAKISTAN’S MARKET POTENTIAL SNAPSHOT

MARKET OVERVIEW

THE PAKISTAN SAVORY SNACK MARKET IS FORECASTED

TO REACH USD 956.2 MILLION BY 2024 GROWING AT A
CAGR OF 9.34%DURING THE FORECAST PERIOD (2019 -
2024).
THE CONSUMERS IN THE COUNTRY CONSTANTLY SEEK
CONVENIENT SNACKING OPTIONS THAT ARE BEING
UPGRADED BY THE MAJOR MANUFACTURERS OPERATING
IN THE PAKISTAN SAVORY SNACK MARKET. THE CHANGE
IN CONSUMER’S PREFERENCE HAS SHOWN A GREATER
INCLINATION TOWARD SPICY FLAVORS OF SAVORY
SNACKS IN PAKISTAN.
KEY MARKET TRENDS
Demand For International Quality Crisps/Chips Is Growing
demand for international quality crisps/chips is growing in Pakistan, especially
among educated middle- and upper-income urban population, owing to increased
living standards, change in the consumer taste and preferences, and impact of
external media. Children, teenagers, and the young population are the targets for
savory snack manufacturers in Pakistan, due to the growing consumption of
crisps/chips among these age groups. Companies in the Pakistan savory snack
market are launching innovative crisps/chips products in different formats,
flavors, and packaging. For instance, Ismail Industries Limited launched a new
crisps/chips brand, Kurleez, toward the expansion in food products, and has
invested in the world’s best machinery to produce its products.
Karachi and Lahore are the major contributor majorly to the savory snack
Karachi is the largest and most populous metropolitan city in Pakistan and also the
capital of Sindhi province. The city has witnessed rapid growth over the past few
decades, with over 23 million people residing in the metropolitan area. The urban
population in Karachi division has increased by over 63%, since the previous
census conducted in the country 19 years ago. The consumers in Karachi are well
aware of the information available in product labelling. Thereby leading the
manufacturers in the market to make strategic efforts for simplifying their
ingredient list. Owing to the enhanced standard of living in the country, the
consumers in Karachi are in search of premium shopping experiences, which has
led to the opening of several modern retail formats in the city. For instance, in
November 2017, Spar International announced a partnership with Burque group,
and resulted in opening of the first retailer store in Karachi.
OPPORTUNITY
Pakistani Market exports & demands fruits in huge quantity, but there is no any firm is
present at here for the manufacturing of „Fruit Snacks”. We will provide to him
fruits in various tastes, like apple, banana, orange, etc in roasted, snakes & chips
form.
If we will proper launch this business, then we may be in condition to change the
market trends within the 5 to 7 years. If we will change the trend of the market
then we will consider as “Trend – Maker” for the Snacks Industry
BUSINESS
We “Be Crisp‟ will facilitate to people by fruit snakes in packets at the reasonable
prices and obtain sufficient value from them. Now, people enjoy their life with
potato chips, snakes, popcorns, chocolates, etc. but we will provide them a
concept of “Be Crisp” or “Fruit Snakes” which will be better for their health.
Our initial product will be “banana chips– A Taste of Nature” in the market to get an
overall response of people towards Fruit Snakes. There is no any direct competitor
is present in the market but a lot of indirect competitors are also present who are
the price makers & trend changers.
COMPETITIVE ADVANTAGE
There is huge gap is present in the market for the fruit snacks. We have no any direct
competitor at local & national competition till now. Our product will be unique in
the market; we will easily achieve economies of scale with the next 12 years who
provide us least cost with maximum profit. Following are our major indirect
competitors in the snacks industry but all of them producing vegetable snakes as:
 Lays
 Golden Chips
 Smiths
 Kolson
 Super Crisps
 Krincles
 Pringles
TARGET MARKET
our basic target market will be

1- Kids (school going)

2- Youngsters of colleges & universities

In our first attempt(launching), we will target the lower & middle class area of
Karachi within the 7 to 10 months.
PRODUCT FEASIBILITY & STRATEGY

Our product “Be Crisp”, the modified form of “Banana Chips” in the national market
of Snacks Industry will may change the trend of people from vegetable snacks
towards the fruit snacks.
In our initial launching, we are introducing two products of “Be Crisp” with different
tastes to understand the behavior of the market & customer towards the fruit
snacks as,

Be Crisp– Sal

Saltiest: The salty flavor of snacks especially for kids & health
conscious people who avoid from the high fats & sugar. The neutralized iodized
(0.025%) salt will be added in this product for the taste & ultimate flavor.
Be Crisp– Tangy Chees

The Tangy Cheese- flavors of snacks for young people especially for girls who demand
something chilly & cheesy in their food. Various kinds of masala‟s and
magnesium salts & chees will be added in this product for the taste.
FINANCIAL PROJECTIONS

According to the Snacks Industry, we are unable to demand a huge capital from the
market. But for the Initial launching of business, the total required capital of business
is Rs. 2 Millions. According to our analysis For the operations of firm, we will demand
Rs. 1Million as initial investment to startup the business and Rs. 1 Million in end of 3rd
Month.
For the return on investment, we plan a strategy as ROI Policy; we will provide maximum
return to our investor. We will distribute 3% to 14% return on the net profit to our
investors who will act as the owner of our business. We will distribute return on
investment in 1st year to the establishment of business. According to the ROI Policy, we
will divide “Net Profit” of the firm after taxation & other expenses among the whole
investors.
After the achievement of the breakeven within 1 year (12months), we will make huge profit
for our investors. The profit generation in this business is not difficult due to less cost
on all inputs of the production, especially raw material. We have 45% ratio of Gross
Profit on the sale of each unit with respect to their Sales Price.
We are introducing two packing for both flavors as,

 Mini – Pack = 30 Grams with Rs. 20/= for consumer

 Midi – Pack = 65 Grams with Rs. 35/= for consumer

MARKETING OBJECTIVES
MARKETING STRATEGIES

We are discussing four marketing strategies which will may valid for next 2 years of
the business life. All of these strategies are based on the time period to launching
the product in any city or part of the Pakistan.
Initial Launching Marketing Strategy
Phase Marketing Strategy
General Marketing Strategy
National Marketing Strategy (Appendix)
All of these strategies have following terms which are used by “Frito‟ Enterprisez” for
their marketing plans & promotions as:
Discount Package
Free Scheme
Extra – Benefits Allowance
Discount Package – under this sales promotional package, we are giving various
kinds of discounts to distributors, retailers & also consumers for attract their
attention towards us. The discount range in this package is 2% - 15% according to
time & situation.
Free Scheme – under this sales promotional package, we are giving free units (in
master packing) on the master packing sales of cartons in big quantity. This
scheme is valid only for distributors & retailers. The range of master packing is
varies from 1 carton – 7 cartons.
Extra – Benefits Allowance – under this promotional package, we are offering so
many kinds of
various things which will provide benefits to retailers & consumers not to distributors.
Following things are giving under this package as:
Product Display Stands
Publicity & Advertisement Material
Display Allowances
Extra – Discount to Anyone (0.5% - 3.0%)
INITIAL LAUNCHING MARKETING STRATEGY

When we launch our product into the market, then we will never target to the
distribution network of this specific area, we will directly target to retailers &
consumers who provide us value. This penetration strategy wills breakdown the
monopoly of distributor regarding our product. We will introduce our product at
initial level to colleges & universities of the specific area. The canteens of these
institutions will provide us demand in students & also in local market
UNDER THE DISCOUNT PACKAGE
we will provide 15% discount to our retailer or canteen owner on retail price (RP)
of each master packing for either (Mini- or Midi Pack). Under the Free Scheme, we
will offer him 2 Free Carton with 10 Mini – Pack Cartons & 1 Free Carton with 10
Midi – Pack Cartons. It is the fully choice of retailer or canteen owner either he
select Discount Package or Free Scheme but not both.
UNDER THE EXTRA – BENEFITS ALLOWANCE
we will provide him 1 stand on the net purchase of 3 cartons of anyone master
packing. If he wants to purchase more than 3 cartons, then we will provide him 2
stands on the net purchase of 5 cartons. At least one stands is compulsory for
each retailer or canteen owner. We will provide one banner to each retailer and
100 pamphlets without any kind of cost for their counter display on each delivery.
If we conduct any “Spot Activity” for consumers then we will provide him 40%
discount on the retail price. This spot activity must be sponsor by us, may on the
behalf of some retailer or any other entity. For the conduction of spot activity, our
Marketing Manager will manage whole campaign.
Note:
This strategy will be valid till after 30 days to the introduction of the product in the
market. After 30 days, we will move towards the next scheme
PROMOTIONAL STRATEGIES
FOR INITIAL PHASE
Most of the promotional strategies are discussed in the product feasibility & strategy
but for more common practice, we also discuss various modes of promotional
activities which choose by our firm for themselves under the limitations of their
budget.
We will start our various promotional activities since 10 days before to the initial
launching of our product in the specific area market. In our first 3 years, we will
use following promotional modes to convey our message towards the general
public as:
Pamphlets
Banners
Social Media Adds
 Mini Promotional events on public places & schools
 Free sampling desks
SOCIAL MEDIA MARKETING