PRINCIPLES

OF
MARKETING
PRESENTATION TOPIC:
RAFHAN CUSTARD
 About the Company
Rafhan Best foods Limited; an affiliate of Bestfoods, USA
was acquired by Lever Brothers and renamed as Unilever
Pakistan Foods Ltd. (UPFL) in 2007.
Unilever is the leading consumer products company in
Pakistan. A multinational deep rooted nationwide and a
portfolio encompassing a wide product line of fast moving
consumer goods.
 About the Product
Rafhan is a name that has gained popularity since 40 five
years of its existence and individuals have been 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 different flavours (Vanilla,
Strawberry, Banana , Mango) of custard so that there is
more variety for the customers to choose from. This
satisfies the ‘variety-seeking buying behaviour’ where
Rafhan Custard Powder customers look for alternatives and more
alternatives to taste.
 Why there is only Rafhan
products?
After a thorough research , it was concluded
that Rafhan custard is more popular and readily consumed as
compared to other brand such as National. The reason being
that there have been no changes in the quality and taste
over the years, instead more variety has been introduced in
an attempt to target all the segments. Through our search,
it was also assessed that rarely have the customers come
across a situation when Rafhan custard wasn’t available in
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. 54. This
amount is affordable by most, of the consumers, irrespective
of their income group/social class..
The quality that Rafhan powder offers hold precedence over
other brands starting from its nutritious ingredients to its proper
packaging, thus indicating that for them each step manufacturing
has to add value to the final product. Indeed retaining the existing
customers and attracting new ones is a tedious task and
something that takes time to achieve. Thus we need to assess the
point that creates value from the angle of the customer.
 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.
 Pricing Strategy
Rafhan prices its product mainly based on customer perceptions.
Customers perceive Rafhan as a quality product and Rafhan also
tries to deliver the perceived quality doesn’t do any compromises
on it. With this said, we can say Rafhan follows Value-Based
Pricing strategy.
 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 a 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.
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.
 PLACE
• Place involves making a product available to the final
• consumer with the help of suppliers and resellers.
• This process of making the goods available from the
manufacturer to the final consumer requires the company to
manage its Value Delivery NetworK.
• This supply chain consist of upstream and downstream partners including
suppliers.
 Analysis of Distribution
Channels
Rafhan adapts two types of distribution methods:
 Intensive Distribution Network
Rafhan distributes through their designated distributors,
who are restricted to operate in their assigned territories.
They have the responsibility to make sure that the product
is available at all retail outlets. This network spans to
all of Pakistan encompassing rural and urban regions.
 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.
 Customer

Distributor
Unilever
1 Customer

Customer
Rafhan acts as a unified system; it has the power to dictate
prices, conditions to be a distributor by meeting terms and
conditions of the company, as the order processing is done by
paying advance cash deposits in the company account to
receive the goods.
 Marketing Logistics
Rafhan goods are physically distributed exceptionally well
as the distributors network are required to make sure that
Rafhan custard is available in every retail outlet, it gains
competitive advantage by providing the product to every
customer who asks for Rafhan custard enabling tremendous visibility of
the product.
Warehousing
Rafhan has their own warehouses where they keep their
finished goods and handover it to their distributors.
Transportation
Their transportation channel supplies the finished products
to the distributers and to MAKRO, METRO and Hyperstar.
 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.
Rafhan has a strong goodwill in the market today which
is
reflected by the decades of success that it has been
enjoying.
Promotion is done on the basis of personal and non-
personal
mediums. The tools used by Rafhan custard comprises
of the
following:
 Marketing
communication mix:
 Advertising
Rafhan Custard Powder
This is classified as ‘above the line.’ The core reason of
why any firm would commonly opt for advertising is solely
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 their broadcast ads quite vibrant
and full of music, and it has indeed paid off via brand
loyalty.
“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.
 ITS SERVING!
Rafhan custard can be served at different festivals that are
Rafhan Custard Powder associated to our culture, such as Basant. This
can also be created if Rafhan alters the image of its product by offering
uniqueness.
Ads that are specifically targeting the rural people should
be made. This will create a segment which will ultimately
yield profits in the long-run. Here Rafhan would need to
redesign their ads in such a way that people living in the
rural areas can easily relate to it and take it as a dessert
that can be consumed at all occasions. The promotional
strategies will alter a bit as opposed to the modern
approach.
 LINKS….
o References:
https://dokumen.tips/documents/rafhan-custard-powderfinal-1.
html?page=5
o https://www.slideshare.net/hirabukhari33/marketing-assignme
nt-15469924
THANK YOU!
ANY QUESTIONS?