case study on K&N

INTRODUCTION 

The year 1964; Pakistan a young independent nation forging ahead towards a dream; self

sufficiency in food production. Malnutrition remained a major problem and one out of

four children died before attaining the age of five. 80% of the ailing children were

affected with diseases caused by protein, vitamins and minerals deficiency. Poultry

production, the quickest and least expensive way of filling the protein gap was planned to

overcome malnutrition. Backyard poultry farming has to graduate to a more professional

level.

January 1964, a young man, Khalil Sattar, still a collage student, had a vision to foresee a

need to establish a poultry farm. his interest led him to start a broiler farm of 1, 000

chicks.littlte had he known this flock was to become the foundation stone of K& N'S .

This was the simple, inspired and nationalistic beginning of K&N's with a single minded

objective of providing a better nutrition for health and happiness of the nation.

COMPANY’S BACKGROUND

K&N’s is the founding pillar and beacon for Pakistan poultry industry- started in 1964

with a single 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 all poultry production activities under one umbrella to ensure quality

and food-safety by managing and controlling all stages of production.

COMPANY’S MISSION STATEMENT

Our mission based on four basic values of Absolute Integrity, Enthusiastic Diligence,

Continuous Improvement and High Quality are at the core of all operations which

provide an impelling urge for attaining perfection.

PRODUCT ORIENTED MISSION

K&N’s has a strict plan to follow in terms of target orientation. Each of product is based

on the rule that it should be healthy to eat and according to the taste of consumers. In this

regard no compromise is solicited on hygiene and quality. Making K&N’s the leading

producer and a company with huge demand for its products is the aim of K&N’s.

CURRENT MARKET SITUATION

From very past the tradition of having heavy breakfasts along with spices and flavors

including chicken have been the delight of Pakistani Cuisine. Majority of the local

consumers prefers chicken to meat and desi food over fast food in Pakistan . Paratthas are

a most famous item in the desi cuisine of the country with a trend based on centuries.

Our product  would be a perfect one enjoying highly profitable sales and customer

relationships as it would be providing the very desi look and an absolute desi taste

desired by the local consumers. In this regard, we can say that Jhatpat would not face any

difficulty in order to convince the local consumers hence the probability for increasing

sales margin is expected.

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 overall standard, quality and brand equity while growing in competition to other

production units in Pakistan.

In its quality assurance cell, the company maintains a check and balance on methods of

sales distribution, new business ideas and strategic options, such as entering a new

market or launching 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.

STRENGTHS

      Along with the developed brand identity and trust reposed by customers,

K&N’s has established its name in international market as well.

      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.

      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

OPPERTUNITIES

      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.

      The comparison of the prices of chicken parathas produced at “tandoors” cannot

be done if hygiene is kept in view.

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.

      In case of  the introduction of firms producing frozen chicken paratha might

be a threat which could be considered well before the start of production.

STRATEGIC PLANNING

There are four steps which basically form the plan for our company which could derive

results in form of long term company survival. These for steps are

Planning Marketing Strategies

Designing the business portfolio 

Setting company goals & objectives

Defining the company mission

               STEP 1                 STEP 2                 STEP 3                   STEP 4

In these steps we aim to provide with the basics for functioning throughout the companies

production process. The long-term missions are to be achieved through setting short-term

objectives. The products are characterized and allotted weights according to demand and

necessity basis, which eventually forms the business portfolio.

COMPANY MISSION

Driven by its basic values in pursuit of perfection, K&N’s is committed to have superior

products and unmatched service through devoted people and consistent development.

PRODUCT ORIENTED MISSION

Creating ease for the local consumers keeping in view the dead busy lives and preparing

ready to cook food with a home made taste, appreciated on hygienic basis.

MARKET ORIENTED MISSION

Providing the best hygiene and nutrition for the health and happiness of the nation being

our very first promised makes us remain stick to our commitment to the customers rather

look for what one may call better for one’s self.

The increasing demand of our products all over the country explains the worth; our

promises are getting through our valuable customers. We prefer what our customer does

as we value the healthy needs and desires of the locals portraying them into what we at

our best.

COMPANY 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 to food-safety, K&N’s integrated all poultry production activities under one

umbrella to ensure quality and food-safety managing and controlling all stages of

production.

Four basic objectives of absolute integrity, enthusiastic diligence, continuous

improvement and high quality maintenance are at the core of all operations which

provide an impelling urge for attaining perfection. Driven by its basic objectives in

pursuit of perfection, K&N's is committed to have superior product and unmatched

service through devoted people and consistent development.

BUSINESS PORTFOLIO

The K&N’s business includes the  chicken products as follows:

      Whole chicken:

      Whole chicken roaster {skin-on, suitable for roasting}

      Whole chicken w/o giblets {skin-less, without neck and giblets}

      Designer cuts:

      Karahi cut {skin-less whole chicken cut into 15-17 pcs. Suitable for

making Chicken karahi and other curries}

      Boti cut { combination of skinless drumsticks and breast pcs}

      Qorma cut { skin-less whole chicken cut into 15 pcs. Ideal for making

qorma and other everyday curries.}

      Boneless meat:

      Breast fillet {skinless boneless breast fillets}

      Boneless handi {breast fillets cut into small cubes}

      Qeema {mixed chicken meat}

      Qeema extra lean {extra lean mixed chicken meat}

      Easy cook {ready to cook}:

      Nuggets

      Chappli kabab

      Burger patties

      Chicken tempura

      Kofta

      Combo wings

      Croquettes

      Haray bharay nuggets

      Hot tenders

      Fun nuggets

      Fully cooked:

      Seekh kabab

      Chunks:

      Chicken tikka chunks

      Green chilli chunks

PRODUCT LIFE CYCLE

Product development:

K&N’s has developed a new pro product that is  “jhatpat chicken paratha” keeping in

view, its objective of providing better health and nutrition for the nation. The paratha is a

much known eatable item in Pakistan that would now be available in a very new ready to

cook, chicken form. The company is ready to put its cost for the product.

Introduction:

K&N’s  being launched for the very first time in Pakistan will firstly be introduced in the

federal capital { Islamabad } and provincial capitals { Lahore , Karachi , Peshawar and

Quetta } in all the outlets.

Growth:

While keeping in view the response of the customers, the would be further introduced

nationwide and its presence in every outlet would be assured so that there is no complaint

regarding the availability of the very new product. Certain advertisements have been

prepared in order to catch the customer’s eye.

Maturity:

With the passage of time when our product reaches its maximum growth point and the

sales slowdown so we are going to apply different strategies like reducing prices,

introducing new ingredients or items in the same etc.

The following graph shows various combinations of products in different phases of

different products.

TimeJhatpat Chicken ParathaFun Nuggets Burger patties, whole chicken roasterSeekh Kebab, Karahi cutWhole Chicken Roaster

BCG MATRIX

High

LowHigh

RELATIVE MARKET SHARE

This famous approach introduced by the Boston Consulting Group helps us position the

different products of our business into four different strategic business units that let us

know the position, strength, and market hold and consumer response to our products.

MARKETING STRATEGY

K&N’s is using the marketing concept as its current marketing technique stating that “the

organization should be aware of the needs and wants of the target markets and should be

delivering the desired satisfaction better then the competitors do in order to achieve the

organizational goals.”

We have a plan of using the marketing strategies that have been discussed below:

Product concept:

This concept says that “consumer will favor products that offer the most quality

performance and features and that the organization should therefore devote its energy to

making continuous product improvements.”

K&N’s from the very beginning has focused on providing better nutrition for the health

and happiness of the nation and we will be keeping the words as they were before.

Quality is our very first priority that will make us build strong and profitable customer

relationships. We will be managing and controlling all stages of production of the

“jhatpat chicken paratha” as done for the rest of K&N’s products in order to ensure 100%

safe and healthy production of our product.

Selling concept:

This concept states that “consumers will not buy enough of the firm’s products unless it

undertakes a large scale selling and promoting effort.”

We are launching an unsought consumer product as none of our competitors or the rest

has launched a product similar to ours.

To make our valuable consumers aware of our newly launched product we have decided

to use this concept. We will create awareness among our customers on a large scale

utilizing all he best promotional means available. Television and radio ads are at the first

priority, billboards at the best locations or different areas, newspaper ads and door to door

awareness programs are at the second. Other than these promotional strategies we will

ensure the availability of our product in access at all K&N’s outlets and the departmental

stores and bakeries.

MARKETING PROCESS

It is the process of analyzing marketing opportunities, selecting target markets,

developing the marketing mix and managing the marketing effort. The marketing process

comprises of three stages given as follows:

      Market segmentation

      Target marketing

      Positioning

MARKET SEGMENTATION

Market Segmentation is the process that companies use to divide large heterogeneous

markets into small markets based on distinct needs, characteristics or behaviors who

might require separate products or marketing mix. From the four very basis of

segmentation i.e. Geography, demography, psychographic and behavioral we divided the

market into two of them given as follows:

      Demographic:

Dividing the market into groups based on demographic variables such as age, gender,

family size, incomes, family lifecycles, religions, race, occupation, generation etc.

We while dividing the market segments demographically considered the following

variables as the basis:

        Gender (male or female)

        Family size (in order to get an idea regarding pieces per pack)

        Occupation (as our main focus is those related to tough jobs or studies or

don’t have much time for cooking or most probably the break fasts)

      Psychographic:

Dividing the market segments into groups based on social class, lifestyle or

personality characteristics.

While dividing the market segments psycho-graphically we used the following:

        Doctors

        Engineers

        Business class

        Govt officials

        Bankers

        Students etc

      Both the psychographic and demographic market segments can be accessed.

      Serving these segments can result highly profitable

      Can be attracted through easily designing of effective programs to serve

them.

MARKET TARGETTING

Every organization selects a set of buyers based on same needs and characteristics in

order to serve them. This is called market targeting. Two important steps regarding

market targeting are:

     Evaluating market segments

The factors, basing on which we evaluated the target market segments are discussed

below briefly:

        Segment size and growth:

In this section we made an analyzed check of the probability of the current segment sales

and that expected for our product and whether we are able to generate the desired

profitability.

        Segment structural attractiveness:

This is an important section where we had a sharp search over the market to find out if

there was any substitute product, the buying power of suppliers and buyers, and if there

was any competitor of ours with the chances of market diversion but we found none.

        Company’s objective and resources:

In this section we implemented a check over the relation between the company’s

objective and the customers and we found an absolute positive relation between both. We

also analyzed the resources of the company with which company is highly able to serve

its customers.

     Selecting target market segments

The target market comprises of a set of buyers having common needs and sharing

common characteristics selected by a company to serve.

Undifferentiated (mass) Marketing: it is a market coverage strategy in which a

firm decides to ignore market segment differences and go after the whole market

with one offer.

Differentiated (segmented) Marketing: it is a market coverage strategy in which a

firm decides to target several market segments and designs separate offers for

each.

Concentrated (niche) marketing: it is a market coverage in which a firm goes after

a large share of one or a few segments or niches.

Micro Marketing: the practice of tailoring products and marketing programs to the

needs and wants of the specific individuals and local customer groups. It is of two

types

Local Marketing: tailoring brands and promotions to the needs and wants of local

customer groups-cities neighborhoods and even specific stores.

Individual marketing: tailoring products and marketing programs to the needs and

preferences of individual customer’s also known as one-to-one marketing

CHOOSING A TARGET MARKET STRATEGY

We analyzed the data gathered through the survey reports and decided to go after the

concentrated marketing. We have decided hostilities students, job oriented men and

women and teenagers. These are the segments that can be called the time savers and our

product will make them have a refreshing breakfast without time consumption.

PRODUCT POSITIONING

It is the evaluation of a company’s product’s position that what place it occupies in the

market and how customers differentiate it from other products.

Choosing positioning strategy

To position the product different companies use different positioning strategies.

      Competitive Advantages

Product Differentiation:

We offer a pack of four. Each separately wrapped in butter paper, combined packed in

sealed plastic bags that are safe for health, and then finally packed in the box.

Service Differentiation:

Our product will be accessible and will be available at every outlet of K&N’s.

Channel differentiation:

In Pakistan K&N’s is operating in more than 35 cities. There is very diversity in its

distribution. We take the example of Islamabad city .In Islamabad there are many stores

as well as retailers in every sector, and only in I-8 there is one K&N’s store and 17

retailer’s shops.

People differentiation:

Technology is highly involved in the production so we will hire trained staff, those who

knows how to operate the machines. We also hire qualified staff in order to guarantee

healthy relationship between customers and retailers.

Image differentiation:

Since our product comes under K&N’s brand name hence a good image will be casted

over the consumers. Also K&N’s is a symbol of quality; hence will automatically be

recognized as a quality product.

Product Chain

K&NS are enjoying there own product chain. They have there own breading and poultry

forms, from where they get there raw material for their product.

      Choosing the right competitive advantage

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

else it is not possible.

Affordable: buyer can afford to pay for the difference.

Profitable: the difference is profitable both for the company and the customers.

            Selecting an overall positioning strategy

Our overall positioning strategy will be focused on More for Less winning value

proposition i.e.   will offer more quality at less price range and we will focus on the needs

and wants of  target customers in order to give high customer value and satisfaction.

POSITIONING STATEMENT

To target the teenagers, working women, hostilities and bachelors, we offer  , a ready to

eat hot and spicy paratha, with high quality, affordability and accessibility.

Marketing Information System:

People, equipment and procedures to gather, sort analyze evaluate and distribute needed,

timely and accurate information to the marketing decision makers.

MARKETTING RESEARCH PROCESS

1.     DEFINING THE PROBLEM AND THE RESEARCH

OBJECTIVES:

PROBLEM STATEMENT

The main reason for the research was to get the feedback from the targeted customers

about introducing the new product of K&N’s  if the customers were ready to buy the

product and if there were any suggestions from the customers about the quality of K&N’s

chicken.

Exploratory research:

In exploratory research we gathered information from the people that whether they liked

the idea of K&N’s introducing  and if they want any type of changes in the product like

people gave the feedback that they would like to buy  in cheese flavor as well. Initially

the company believed that as chicken paratha is a very traditional type of ready to serve

food according to the taste of Pakistani people so this will earn a lot of revenue for the

company

Descriptive Research:

People respond in a very positive way to the products of K&N’s. Their is a very high

market potential for the products of K&N’s. through research it was found that pricing

was an issue that needed to be considered

Causal Research:

We did research and collected primary data from people to find out that what the things

that can affect the sales of . There are various factors involved that the target customers

were looking for like the type of packaging, pricing

2.     DEVELOPING THE RESEARCH PLAN:

Our research plan was based only on the information collected from the

questionnaires and the general observation on the peoples taste requirements

SAMPLE PLAN

The sample plan used was cluster sample the total population was divided into mutually

exclusive groups such as students, teachers, business oriented and job oriented people. It

was convenience sample as well as the divided mutually exclusive groups were

approached as convenient.

We distributed 50 questionnaires among different age groups or segments

20 among the students

10 among the teachers

14 among the job oriented people and

6 among the business class

DATA SOURCE

The data was collected from the people directly i.e. it was primary data .the data was

collected from students, teachers, Business class and job oriented people.

Primary Data Collection:

As the company was introducing a new product so the data was to be collected from the

people directly. Asking about the feedback from the people related to the new introducing

this includes  

Contact Method:

Personal interviewing was used as the contact method as it has excellent flexibility and

excellent quantity of data can be collected through personal interviewing and as the cost

factor involved was very less and the data can be collected very accurately.

Research Instrument

Questionnaire was used as the research instrument as they are very flexible. You can

mold your questionnaire as you want and in any way to gather your required information.

Research Approaches

The research approaches we used to evaluate our products were the observation research

and the survey research .we didn’t use experimental research. But in the beginning we

will distribute a small amount of the and then do research on the peoples behavior

experimentally by observing the peoples behavior after using the product. And then

further decide about the distribution of the product or if any changes required and then

we will increase production.

Observation Research:

It was observed that the Pakistani people preferred spicy and traditional food they

responded in a very positively to the previous K&N’s product such as the seikh kabab

and the chapel kabab. It was observed that introducing  in Pakistan would generate high

sales.

Survey Research:

A survey research was conducted about the about their attitude, preferences and the

buying behavior. A survey among the students, businessman and job oriented people

related to the pricing, packaging, quality, experiences

3. Implementing the Research Plan:

After defining the problems and developing a research plan we implement the research

plan and our research and development department will we handling the affairs and

interpreter the findings.

4. CONCLUSION OF THE RESEARCH:

We have got a positive feed back and good response by our targeted market segments and

now we are ready to launch our new product i.e.   (The K&N’s Jhatpat Chicken

Paratha).We made a comparison of  with the paratha if offered by Rahat Bakers the

customers are keen to buy and about the packaging mostly people were willing to buy

pack of six . People liked a combination of spicy and cheesy flavors .Most of the people

was willing to buy  with a packaging in butter paper and boxes. As now a day’s time is

money even ladies are working in offices so they are in

search of products that are a complete meals for their family and are time saving, with the

increase in the business in the schedules of people the trend to ready to serve meals is

also increasing so  A product of K&N’s has a scope in market as K&N’s has the largest

market share in ready to cook and ready to serve products. A very positive behavior of

the target customers was observed.

PRICING, PROMOTION AND DISTRIBUTION

STRATEGIES

PRICING STRATEGIES

As we know that there are two types of new product pricing strategies

        Market skimming pricing

        Market penetration pricing

For our product  we have selected the market penetration pricing strategy. We apply this

strategy to keep our product prices lower so that by doing this we attract a large numbers

of buyers and also to gain large market shares.

The reason for not using market skimming strategy is that as our product is an eatable

product and there no sense of keeping high prices for an eatable product, because as we

know that skimming strategies are for luxury products. 

PRICE ADJUSTMENT STRATEGIES

After penetrating into the market, we will adopt adjustment strategies in order to increase

our sales and attract more customers. Basically these adjustment strategies are according

to the taste, culture and the changing situation of the market. Following are the price

adjustment strategies.

         Discount and Allowance pricing.

         Segmented pricing.

         Psychological pricing.

         Promotional pricing.

         Geographical pricing.

         International pricing.

DISCOUNT AND ALLOWANCE PRICING

We will apply this strategy by giving quantity discount to our customers.

Quantity Discount:

We will give quantity discount by offering “buy one get one free” offers.

 We will also give discount to those customers who will buy  in bulk or in large quantity.

Segmented pricing:

We launched our product in almost all the parts of the country with almost the same

prices. We segmented our product price in the following ways.

 Time pricing strategy:

In time pricing we will lower our prices according to different seasons. We will reduce

prices in Ramadan season, as its demand is more in that season.

Promotional pricing:

This strategy involves temporary lowering of the prices of the product below the cost to

increase the short run sales. We apply this strategy when any one of our competitor lower

its product price in order to grab market shares. To compete with them we also lower our

product price so that we can retain our market shares.

Geographic pricing:

In Geographic pricing we adopt freight absorption strategy.

Freight absorption strategy:

We do not add freight charges to our product price in order to keep our product price

lower, as our focus is to capture more customers.

International pricing:

As K&N’s is not yet internationally recognized so we do not set international prices for .

K&N’s is only serving nation wide so we set prices of our product nationally.

PRICE CHANGES:

Some time companies have to initiate price change after developing pricing strategies

because of different reasons. Price change could be a price cut or price increase.

Initiating a Price Cut:

 We already set a low price for our product but we cut price of our product if our sales

will not increase accordingly, in that situation we will cut the price in order to increase

sales and to capture market shares.

Initiating a Price increase:

Once our product achieved a position in a market and we set a good image in the

consumers mind and we have a large number of potential buyers then we might increase

our product price. But our aim is to give good quality product in an affordable price.

 We can also initiate our product price when our product demand increases and we can

not supply according to the demand but INSHALLAH this situation will never come

because K&N’s has its own poultry and breeding farms. 

Buyer’s Reaction to Price Changes:

 Changing in price has a great effect on the consumers mind. They think that there should

be some problem with the product so the company is decreasing its product price or the

customers may interpret it as the company is closing its business and they will not offer

this product in future. On the other hand price increase also affects the buyers in a way

that they think that this product is unobtainable unless they buy it soon. They also think

that the company is greedy and they are charging more prices for their product.

Competitor’s Reaction to Price Changes:

We should be aggressive while changing our product price and we have to change our

product price according to the competitor’s product price. So we should also keep our

competitors into consideration before lowering or increasing our product prices.

Responding to Price Change:

If our competitors Changes the prices it affects our sales. So we should analyze the

change and react to it accordingly. Like if they low their price it will decrease our sales so

we should adopt strategies to increase it by lowering our price, giving discounts or

improving quality of our product.

Promotion Strategies:

Promotion is the activity in which the company has a chance to interact with its

customers. To Promote we use different promotional tools. These tools include

advertisements, sale promotions, public relations, personal selling and direct marketing.

Advertisements:

We will use informative advertising because it is mostly used when introducing a new

product. The objective of it is to build primary demand. We will use the persuasive

advertising when we have a competition in the market.

Sales Promotions:

In sales promotions we will use different discount strategies, giving short term incentives

in order to increase our sales. We also introduce sponsorships and discount coupons.

Personal Selling:

We will also promote our product through personal selling. Personal selling is more

effective then any other promotion strategy. Through personal communication it is easy

to persuade someone to buy your product, because in personal selling there is a direct

contact with the buyers.

Public Relations:

To increase our sales we will also ties good public relations. We develop our public

relation by doing the work of social responsibility, like wishing happy Eid or wishing any

other special event to our customers.

Through Public relations it also creates a good word of mouth for our product which is

the most efficient way of promoting a product.

Direct Marketing:

In direct marketing we will target our customers through internet, telephone, print media

and electronic media (television and radio).

Print Media:

 We will promote our product through print media by advertising our product in

newspapers and in different magazines. We will adopt this type of advertising when we

want to introduce some new discount packages or sales offers. Other then advertising in

newspapers and in magazines we will also advertise our product on bill boards and

banners.

Electronic Media:

To promote our product through electronic media we will advertise our product on

different television channels and on radio stations. To make our product information

more convenient and easy we will provide our website and  24 hours toll free numbers,

through which our customers can contact us and also give feedback about the product.

Other then the print and electronic media the cheapest way to promote our product is

through short messaging service. We have a contract with different cellular companies

that they will send our promotional messages to their special numbers. 

Promotion Budget:

To allocate budget for our promotion strategies we will use objective and task method.

According to this method first we define our promotion objectives, that why are we

promoting our product? After that we determine different tasks to accomplish those

objectives and at the end we estimate the cost utilize in performing these tasks.

DISTRIBUTION OF OUR PRODUCT

After the development of our product our product should be distributed into the market

for the satisfaction and attraction of our consumers. Our product plays a vital role in the

availability of our services to attract the customers.

How to Distribute our Product to Retailers

        Sell Directly to Retailers

        Sell through distributors, which sell a broad range of products to many retailers         Sell through captive distributors, which sell a broad range of products to one chain of retailers.        Sell through distributors, which sell to your targeted customers.

Distribution Channel of our Product

The distribution channel of our product is indirect marketing channel because this

channel contains one or more intermediary levels.

Pricing of our Product

The price of our product is at low of cost and easily affordable as compared to our

competitors, so that our product will remain more attractive in the eyes of people and this

may help to increase our customers.

Cost of Development of our Product

The price of our product is based on cost of all ingredient used because of its low price

our product is very popular among customers.

Product

Our product offers consumptions, attention to satisfy desire or need in the market

Level of Product   

        Core Benefit: providing the good taste.

        Actual Product: our product includes all ingredients in packaging

according to the core benefit.

        Augmented Product: our product may provide some benefits which are

related to our product.

Channel Behavior Conflict

The conflict of channel behavior of our product is vertical conflict. Because in this

conflict; conflict lies between different levels of the same product, is even more common

Marketing System

Our product may consist of vertical marketing system (VMS) because it is such type of

distribution channel in which producers, wholesalers, retailers act as

.

unified system. So that one channel member owns the others, has contracts with them, or

has so much power that they all cooperate.

Type of VMS

Our product lies in the administered VMS in the vertical marketing system because this

type of VMS coordinates successive stages of production and distribution, not through

common ownership or contractual ties, but through the size and power of the parties.     

 INTEGRATED MARKET COMMUNICATION Communication Process:

Sender: K&N’s

Encoder: The advertising agency and the Creative department

Message: that now ready t cook proper meal is available for the hostilities and the

working women

Channel of message: through broachers, TV advertisements, newspaper

Decoding: this is done by the consumers, customers

Receiver: the targeted customers are the receivers.

Response: if our product satisfies the needs and wants of our customer then in response

they will approach towards our product

Feedback: as a feedback the customer can go to any outlet of K&N’s .they can even mail

there feedback to the customer relation manager through our website

DEVELOPING EFFECTIVE COMMUNICATION

1. Identifying the target Audience:

K&N’s has targeted mainly the hostilities and the working women who do not find time

to cook food sometimes so they can avail the facilities of a wide range of products

provided by K&N’s and they can remain free of tension when they don’t have time and

they have to serve a complete diet to their children that is safe and healthy as well

2. Determining the communication Objectives:

We go through the six buyer-readiness stages

K&N’s objective is to give knowledge about their new product the as the consumers are

already aware of the brand K&N’s giving them knowledge that how their needs and out

products qualities are connected so that this is a part of their liking how our product is

differentiating in the market by providing 100% safe chicken items why to prefer K&N’s

and then comes the conviction that K&N’s is the fastest growing chicken product dealers

in Pakistan so they have come up with a new tasty and healthy product  and then

motivating them to the extent of purchasing the product.

3. Designing a message:

Using the AIDA formula we have designed our message that converts the desires of the

people for the product into the actions of purchasing it

Message Content

We will be using the rational appeal for producing the desire to purchase the . Their is

the personal interest of our targeted customers in purchasing ready to cook food that has

both safety and health

4. Message Structure:

One sided Argument:

 We will use one sided argument by mentioning the strength of the  as it is ready in

minutes and tastes like homemade and when you have nothing on your mind to cook you

can go for K&N’s near your door steps.

Order of Argument:

We are going to mention the most important part first the give the extra information in

the middle and then end with attracting the customers that our product is what you need

5. Choosing the media:

Non-personal communication channels:

We will be selecting non-personal means of promotion and communication .we will use

media like the newspapers, cooking magazines, radio, and billboards. This will exclude

the risks that can be caused by personal selling i.e. the image of the company can be

affected if a bad word of mouth is spread.

6. Selecting the message source:

We will use any female celebrity that will demonstrate that in her busy routine she gives

time to her family as well and when she has to serve food within no time she prefers

K&N’s because she has trust on the quality of products of K&N’s

7. Collecting Feedback:

We will use personal selling strategies form collecting the feedback about the promotion

of the product like Word of mouth and by conducting surveys  .

Pull Strategy:

We are using the pull promotion strategy by reading the minds of the customers and

providing them with their needs so that the customer itself goes for buying our product

and at least trying it for once, afterwards the taste and quality of K&N’s will make the

buyer purchase the product again and again.

CONTROL AND SUGGESTIONS

In today’s fast moving the major issues related to society is the TIME. This is a

factor which creates hurdles in decision making of consumers to adapt a product

according to their needs. Another factor which contributes towards social setup for

behaving in more specific purchases is the health of general public.

According to a survey conducted by our group more people were found to be

cautious about contents and taste of products they consume. They prefer easy to

use and quick to serve products in their meals.

 Our product is mainly focusing on the working women and the hostilities. The

hostilities require something that is ready to serve in minutes that is less time

consuming but still full of taste and nutritious as they miss the taste of home made

food and the working women cannot get time to prepare meals like chicken

paratha that is very time consuming if completely prepared at home .so our

product provides them the solution t their problems