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CONTENTS

• Summary.
• Mission & Vision Statement.
• Introduction & History:
• Product Introduction.
• History of PepsiCo.
• History of Frito-Lay.
• Introduction of Kurkure in Pakistan.
• Product Assessment:
• Quality, Style & Design.
• Flavors.
• Ingredients.
• Usage.
• Pricing.
• Packaging.
• Branding.
• Labeling.
• Product Lifecycle.
• Consumer Assessment:
• Marketing Segmentation.
• Marketing Mix.
• Cultural & Social Factors.
• Economic, Political & Technological Factors.
• Competitors Analysis:
• Major Competitor.
• Direct Competitor.
• Indirect Competitor.
• Marketing Objectives.
• Marketing Environment.
• Marketing Strategy.
• SWOT
• Evaluation, Monitoring and Control.
“Summary”
This is the detailed report about PepsiCo product Kurkure.
It covers the detailed product introduction with respect to the four Ps of the
marketing, brief history of the company, marketing environment of the
company in Pakistan, product & consumer assessment that affect the
workings of the company. It also includes the detailed competitor’s analysis.
This report also covers the marketing objectives, marketing strategies such as
target market, pricing and product strategies & SWOT analysis.
At the end we gave some recommendations which may be useful in the
growth and progress of the company. We have tried our best to cover all the
topics of report and provide maximum information about the product.
“Mission Statement”
• To be a result oriented and profitable Company by consistently improving market
share, quality, diversity, availability, presentation, reliability and customer
acceptance.

• To ensure cost consciousness in decision making and operations without


compromising the commitment to quality.

• To set up highly ethical business standards and be a good corporate citizen,


contributing towards the development of the national economy and assisting
charitable causes.

• To adopt appropriate safety rules and environment friendly policies.

“Vision Statement”
• To be a market leader providing quality extruded snack products.

• To strive for excellence and global recognition by continuous improvement,


innovation, dedication and growth.
“Product
Introduction”
Named after the Hindi word for "crunchy", Kurkure is a Cheeto-like snack made and
marketed by Frito Lay's. It is one of the most popular snack food products in Pakistan
today. Kurkure comes in 3 different flavors. Snacks are of two types extruded & potato
chips, Kurkure is the extruded snack item. Introduced in Pakistan by PepsiCo
International on 1st September, 2006. Initially made in China under ‘Saudi Snack Food’
but now from 14th august, 2006 it is produced by PepsiCo International at plot no.413
Sunder Estate Rewind Road Lahore.

History of PepsiCo
Caleb Bradham, a New Bern, North Carolina pharmacist, renames "Brad's Drink," a
carbonated soft drink, created to serve his drugstore's fountain customers. The new name,
Pepsi-Cola, is first used on August 28, 1898. In keeping with its origin as a pharmacist's
concoction, Bradham's advertising praises his drink as “Exhilarating, invigorating, aids
digestion.” 1902--The instant popularity of this new drink leads Bradham to devote all of
his energy to developing Pepsi-Cola into a full-fledged business. He applies for a
trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola
Company. In 1965 company begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge,
forming PepsiCo, Inc.
History of Frito-Lays
Frito-Lay is an American and international company that markets corn chips, potato
chips, and other snack foods. Its headquarters is based on Legacy Drive in Plano, Texas,
USA (a suburb of Dallas). Frito-Lay was the result of the merger of the Fritos Company
and Atlanta-based H.W. Lay & Company in 1961. In 1965, a merger of Frito-Lay, Inc.
and the Pepsi-Cola Company resulted in the formation of PepsiCo, Inc. Currently,
PepsiCo retains ownership of the Frito-Lay Company, Tropicana Products, The Quaker
Oats Company, and The Smith's Snack food Company, Gatorade, and various other
ventures. Kurkure also comes in the ownership of Frito-Lays.

Introduction of Kurkure in
Pakistan
Although Kurkure is the product of Frito-Lays but it was introduced in Pakistan. It was
initially made in China under ‘Saudi Snack Food’ but now from 14th august, 2006 it is
produced by Pepsi. Kurkure capture a huge market in a very limited time due to its mouth
watering taste and aggressive marketing.
“Product
Assessment”
Kurkure lies in the extruded item which comes under FMCG Products (fast moving consumer goods).
Like every other multinational company, before introducing the ‘Kurkure Company conduct different
surveys to get consumer interest about features, design and quality level. Kurkure is the convenience
good at the consumer level so they are not offering any after sale service, user manual but they are
offering benefits to the retailers in the form of more profit.
Kurkure is unique in Quality, Flavor, taste and quantity. It’s totally fulfilling the need of the people.
Kurkure is the consumer product because it basically use at the consumer end, consumer buy or
purchase for their personal use or consumption. In the case of Kurkure the consumer buying behavior is
frequent purchase as Kurkure is easily available at a very low price at almost every general or retail
stores in the country.

Quality
As far as the quality is concerned, company is producing a high quality product at a very low price.
Customer in this region consider low price but still want for high quality. Kurkure is positioning itself on
the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is
offering “fast-mirchi” product to the customers.

Style & Design


Style and design matter a lot on the outcome and response of the product. ‘Kurkure’ as the product
(inside the pack and out side wrapper) has much attractive and catchy colors style and design which
attracts the customers alot.

Flavors
Initially Kurkure was introduced in the market with only 2 flavors but later on company added 1 more
flavor in the family of Kurkure. All flavors of the Kurkure are mouth watering and tempting. The real
taste is in the crispness of the product, consumer can use Kurkure as plain or with different styles &
recipes. Kurkure has adding more and more flavors to attract the consumers and retaining same taste.

Kurkure’s Flavor.
1. Masala Magic
2. Red chilli Jhatka
3. Podeena Masti

Ingredients
While concerning the ingredients, it contains major mixture of Rice Meal, Edible Oil, Corn Meal, Gram
Meal, Salt, Spices and Condiments and converted them to snack like eating crisp sticks that has never
introduced before.

Usage
Kurkure is also positioning itself on the basis of its usage. Its promotional campaigns urge consumers to
use it on.

Daily basis:
• At lunch
• Dinner
• Anytime, anywhere

Servings:
• With Chaat
• With tea
• With Raita
• With drinks

Occasions:
• Parties and celebrations

Pricing
Kurkure is standing in market as a low price chilli snacks. It is affordable by the consumers of every
income level and price deliver value to customer.
Price Range:
• Small Rs 5/-
• Medium Rs 10/-
• Large Rs 20/-

Packaging
Kurkure is available in the market in 3 different packing. Kurkure comes in the air tight packing &
packing material of Kurkure is of high quality so that product will remain fresh and its taste keeps secure
up to more than four months. Kurkure has 3 different flavors in the market so the each flavor has its own
unique packaging color combination according to its taste. Basic color combinations are in green and red
colors which all are eye catching.
Kurkure is available to the consumer only in primary packing. No secondary packing is using. However
they are delivered in container packing from production plant to shopkeepers or retailers, which carries
48 packs.
Kurkure is available in three different sizes
• 19 gm
• 38 gm
• 75 gm

Branding
Kurkure lies in the manufacture brand because they are producing their product by its own. ‘Kurkure’ is
an international brand of PepsiCo Int. and they are controlling the production itself in India. When they
came Pakistan, although in Pakistan Riaz bottlers are the dealer of Pepsi but for ‘Kurkure’ company
itself made a plant and produce them by their own to serve their customers. With the time being this
brand is so familiar so its capture the mind of every person as a unique, quality, and tasty extruded with
Kurkure’s Brand.
Labeling
Labeling is the significant part of the product although there is less space available for that but it
contains many information regarding the product. On the pack of ‘Kurkure’ following information are
available. Nutrition facts & ingredients details are available on the back side of the “Kurkure” in all 3
types of that such product available in the market for health conscious people. On the front of every
Kurkure’s pack it is clearly indicates that it’s a Hilal Food.

NUTRITIONAL INFORMATION NUTRITIONAL INFORMATION NUTRITIONAL INFORMATION


Red Chilli Jhatka Amount per serve (10g) Kurkure Masala Magic Amount per serve (10g) Kurkure Podeena Masti Amount per serve (10g)

Energy KJ 108.4 Energy KJ 108 Energy KJ 240


Kcal 60 Kcal 60 Kcal 60
Protein g 1.3 Protein g 1.3 Protein g 0.7
Carbohydrates g 9 Carbohydrates g 10.0 Carbohydrates g 5.5
of which sugar g 0.3 of which sugar g 0.4 of which sugar g 0.2
Fat g 7.1 Fat g 6.9 Fat g 4.0
of which saturated g 3.3 of which saturated g 3.1 of which saturated g 1.7
Fiber g 0.2 Fiber g 0.2 Fiber g 0.1
Sodium g 0.2 Sodium g 0.2 Sodium g 0.1

Product Life Cycle


Kurkure is launched only few months (1st September 2006) back in Pakistan and growing day by day.
Currently Kurkure lies in the Growth stage where the profit ratio is not very high but the growth rate is
very high but by the time pass consumer may be become exhaust from this product, which is a natural
phenomenon, and the product will at stake on the point of maturity. By introducing new tastes, flavors
and retaining the quality standards, it will snatch consumers of other brands and pull them towards itself
by leaving other competitors far behind and get advantage over them.
“Consumer
Assessment”
Marketing Segmentation
1. Geographic Segment:
Concerning geographical factor, Kurkure is trying to expand its wings to cover towns, villages,
cities; making it available to everybody. The product Kurkure is specially designed for the Gulf
& South Asian region specially India & Pakistan considering the taste & style of the traditional
foods & flavors.

2. Demographic Segment:
Concerning demographical environment, Kurkure will focus on several variables such as age,
gender and income level.
Age: Kurkure will focus heavily on children and young people.
Gender: Kurkure is a generalized product for any sex, male or female.
Income level: Kurkure pack is easily affordable and company is trying to give more for less
making it best value of money.

3. Psychographic Segment:
Considering psychographic factors, Kurkure will heavily focus on customer’s life style, tastes,
and personal values that best match with the product usage and distinctive from competitors.
Making an image of style, standardized taste and variety of flavors, Kurkure impacts positively
on individual customer satisfaction.

Marketing Mix
1. Product
Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When
considering the unique tastes, Kurkure is offering “fast-mirchi” product to the customers
2. Price
Price also plays a vital role in the buying decision of any product because the price of a product
will create a perception about the quality of the product. Kurkure is standing in market as a low
price chilli snacks.

3. Promotion
Kurkure is making big investments in promotional campaigns, using top models & celebrities
from the media. Company is touching customers through:
• TV advertisements
• Posters
• Retailer promotions

4. Distribution
Placement of a product is also very important while buying the product like Kurkure. Since the
right product at the right place is the real effectiveness of the company as well as product.

Cultural Factors
As Pakistan is the agriculture based country, 70% of our population is connected directly or indirectly
with the agriculture sector. Rice, Corn, Gram & Spices are the main & basic ingredients of our food. In
fact Kurkure is such type of item which is specially designed for this region but it does not have any
threat from the subculture of this region. Market in this region and its culture is extremely favorable for
such type of snacks, which come in the head of extruded item, and people buy snacks frequently in this
region.
By understanding the culture company is advertising their product for all age groups because their
product is for everybody’s use. This understanding is also very important for their purchasing patterns
and use. The company is mainly concentrating on upper & middle class.
Social Factors
The target market of Kurkure is generalized including children, young and old people. In precise target
market, Kurkure is focusing heavily in children and young segment. Kurkure is such kind of product
which is easily affordable for every class of the market either quality conscious or price conscious,
excluding lower lowers and upper lowers. The main focus of the company is the middle class along with
a bit of elite class and also working class. Middle class is the best responding class for Kurkure.

Economic Factors
The price of the small Kurkure pack is Just Rs.5/-, so it is affordable to every class of the country
although those are not who are below working class (labors).

Political Factors
Kurkure is a legally registered company and applying labor laws and market laws of Pakistan. But it is
known to them that Government interaction got much importance in every business and if there are
some restrictions on them then it may be a hurdle in their way to success. That’s why some harsh
Government rules may influence a wrong impact on company’s goals and achievements in future.

Technological Factors
Kurkure being the product of PepsiCo International and having a good repute in international market are
already using modern technology to enhance the production and the quality.
“Competitor
Analysis”
Drinks

Crackers Candy Bars

Lollipops Cocktail
Pringels Nimko
Lays Slanty
Jelly
Beans

Kurkure
Biscuits
Mr. Chips Veezo Kurleez
Product Form
Competition:
Salty Sticks
Canteens Hotels

Popcorn
Product Category Competition:
Doughnuts Crispy foods

Generic Competition:
Snacks

Budget Competition:
other foods and fun
Major Competitor
In direct competition, Veezo is a major competitor for Kurkure, because of;
1. Ingredients, taste and style
2. Hitting directly the segment of Kurkure
3. Capturing a good segment of market
4. Taste and flavors

The company is launched with a different image performing as a snack food. Comparatively it is
facing lesser competition in the market. Its has been launched with its strong promotional
campaigns. It has a different kind of target market.
The company doesn’t have a strong brand image in the local market as comparatively the other
competitors have like Kolson (Slanty) and Cheetos. There quality is not as better as other
competitors of them like Kurkure are providing.

Direct Competitor
Kolson Slanty is the direct competitor of the Kurkure, who still holds the largest share of the market.
Company is producing wavier natural extruded item and per package price is same as Kurkure is
producing. Kolson (Slanty) already existed in market before the arrival of Kurkure and its integrity with
the local market is older than Kurkure. Kolson (Slanty) is very much aggressive in her promotional
campaigns and have targeted youth and Teenagers.
They don’t have their stands yet therefore it’s hard for them to create a shelf space. There quality is not
as better as other competitors of them like Kurkure are providing. The quantity of Kolson (Slanty) is
less than the quantity of Kurkure at same price.

Indirect Competitors
Pringles in this category are the indirect competitors of Kurkure. The target market of Pringles that is
Super Elite is loyal to them. The packing of the Pringles is prepared of Aluminum foil which attracts the
health conscious people. The placement of each piece of chips in the packet is arranged in a manner and
same in their size which also catches the attention of customers.
The have target just the Super Elite Class neglecting the other social classes of the market. The prices
are that much high that its not being paid by habitual or variety seeking customers.
“Marketing
Objectives”
• To be a market leader providing quality extruded snack products.
• To strive for excellence and global recognition by continuous improvement, innovation,
dedication and growth.
• Customer attraction towards the product is very important and without this phenomena company
can’t fulfil its targets.
• Strong distribution channel is the foremost element and is required more when the need
increases, so the company should also focus on them and will give them certain benefits as well
as the retailers.
• Company should reduce the cost of production to increase the turnover.

“Marketing
Environment”

Microenvironment
The Company
• Research & development
Company has established their own plant at plot no 413, Sunder industrial Estate, Raiwind Road,
Lahore. Its working and efficiency is under consideration. Experts are there to watch out and examined
the machinery as well as production unit. They are also ensuring that its production is fulfilling the
requirements in due time. Experts make it sure that they are producing Quality products. (Maintaining
their quality standards)

• Production
Company was importing Kurkure from China and Lays chips from “Saudi Arab” through its supplier
“Saudi Snack Food” Company has started its production at its New Plant at Raiwind road Lahore on
14th August 2006. That improves the performance of the company. The time period of importing the
product is eliminated. Raw material can be available in local market, so it would reduce the budget for
raw material. The time span right from the production to distribution will squeeze and efficiency will be
enhanced.

Suppliers
Company was importing Kurkure from China from 1st June 2005 and Lays chips from “Saudi Arab”
through its supplier “Saudi Snack Food” and has a strong bond with them but now Kurkure is produced
in Pakistan.

Distributors
Kurkure has one major distributor in Pakistan.

• Shahbaz brothers
Shahbaz brothers having maximum of their targets and maximum margins which is 14 % are their major
distributors they are covering area of Gulberg, Defence, Cant, Sadar, Taj Bagh, Taj Pura and Jalo etc.
Order placement to Main Depot which is situated at Gulberg II, Pepsi office is weekly based and within
48 hours supplies arrives from Main Depot to Distributors Depot from where they distribute them to
different retailers. Distributors are covering 35 to 40 shops daily to fulfill their target in the end of the
month period. For distribution available vehicles are vans, Suzuki and Shahzors (only for Shahbaz
Brothers).

Customers
The strategic focus of a business or a marketing plan of “KURKURE” Company is that they are
targeting Youth, Girls and housewives (opinion leaders).
The company needs to study five types of customers like consumers, business, resellers, International
and government. But in the case of KURKURE only consumers are exist.

Public
All the public groups has an impact on KURKURE, banks from they have obtained loan, advertising
agencies from whom they have run their advertising campaigns, govt. will also because they have an
opportunity to collect tax and employees also because they have to earn from this.

Macro Environment
Demographic
“KURKURE” are not specifically concerned with any religion, race, occupation, family life cycle or sex
and has a target market in every societal group. Main concerned segment is girls, housewives and youth.
Who have experienced high product consumption level? But they are also targeting families, as they
understand this influence factor in this region.

Economic
All income groups are favorable for the business of “KURKURE” although those are not who are
working class (labors).

Increased government
intervention (political)
“KURKURE” is a legally registered company and applying labor laws and market laws of Pakistan. But
it is known to them that Government interaction got much importance in every business and if there are
some restrictions on them then it may be a hurdle in their way to success. That’s why some harsh
Government rules may influence a wrong impact on company’s goals and achievements in future.
Natural
“KURKURE” as an extruded item, made of vegetables, although these are natural resources but still
there are not harmful to the nature. And there is rare chance of shortage of raw material in this case.

Cultural
“KURKURE” is not as such a product which can be affected by the culture and tradition (primary &
secondary) changes. Infect, it is based upon the culture of South Asia (Sub-continent) and Pakistan

Technological
“KURKURE” being the product of PEPSI International and having a good repute in international market
are already using modern technology to enhance the production and the quality.

“Marketing
Strategy”
Market Orientation
Becoming market oriented, Kurkure will focus on snacks’ customers. Keeping in mind
about the preferences and needs of customers regarding tastes and flavors, it will occupy a huge number
of customers.

Gaining Competitive Edge


By introducing new tastes, flavors and retaining the quality standards, it will snatch
consumers of other brands and pull them towards itself by leaving other competitors far behind and get
advantage over them.

Trade Promotions
By delivering valued trade promotions to wholesalers and retailers, company will capture
this huge segment. This will allow Kurkure to stay in market effectively and people will order more
quantity due to its increased demand by customers.

Target Market
The target market of Kurkure is generalized including children, young and old people. In precise target
market, Kurkure is focusing heavily in children and young segment. Kurkure is not concerned with any
religion, race, occupation, family life cycle or gender and has a target market in every social class. Main
concerned segment is youth who have experienced high product consumption level. But they are also
targeting families, as they understand this influence factor in this region.

Pricing
The company is following the Cost-Based Pricing. But a company cannot follow a single strategy
straightly. Kurkure is standing in market as a low price chilli snacks. It is affordable and price is
delivering value to customer. Kurkure is offering three different prices for different packaging.
• Small Rs 5/-
• Medium Rs 10/-
• Large Rs 20/-

“SWOT Analysis”
Strengths
• People from almost every income level are consuming Kurkure.
• Brand conscious people like it most.
• Being the part of the PepsiCo international company having the huge investment.
• Attracting huge number of consumers by advertising campaigns through electronic & print
media to aware the customer towards Kurkure.
• People are comfortable with the Price of Kurkure.
• Company is emphasizing on its distribution and placement strategies.
• Kurkure has a strong brand image at their back like Lay’s and also PepsiCo International.
• Kurkure is such kind of product which is free from any kind of age or gender restriction.
• It is also useful for health conscious people because it is made of grains (wheat, rice and many
others).
• Kurkure is such type of snacks which is always ready to consume.

Weaknesses
• Facing the enormous competitors in the market.
• Indirect competitors are investing heavily in branding.
• Although they are trying to make their efforts best to make their supply excellent but still they
are not reached to the rural areas of Pakistan.
• Some areas like Highways (especially on Motorway) and many others exist in Pakistan where
still Kurkure can not manage to fulfill their requirements and where the products of competitors
are available.
• Elite class of your society are not consuming too much as compared to the middle and others
due to the price as we can say the status problem
• At that time Kurkure only offering three flavors while others are offering more than that.
• Kurkure are not providing any extra facility or benefit to the customer.

Opportunities
• Supply of this product in the remote areas of Pakistan.
• Improvement in its Quality as there is always room for the improvements in anything.
• Addition of new local flavors helps a lot to sustain in the market.
• Sponsoring major events and festivals for huge awareness campaigns.
• Try to make supply in all the areas where the other competitors are existing already.
• Design such strategies and advance planning to become the market leader in the smallest span of
time.
• Introduce the family and economy pack to serve the large families which also cost you cheaper
and ultimately will accepted by the consumer.
• Try to serve the elite class according to their status and requirement.
• Make advertisement in sub urban and rural areas and give incentives to the shop personals so that
also motivate towards it.
• Kurkure has an opportunity to introduce a less spicy or light flavor to increase their consumer
ship and target market.
Threats
• Competitors like Kolson and Triple M are the biggest threats to our product.
• Indirect competitors are also contributing in the same way.
• Biscuits and Nimko hold major share of Market.
• New entrants can also the threat for the Kurkure and may create hurdles in the growth.
• Small companies that are not a problem at that time may become the main competitors or threats
to Kurkure
• On arrival of Kurkure Kolson introduced a new flavor in their brand Slanty which may divert the
attention of consumer towards them from Kurkure.
• There are many substitutions in the case of snacks which is the great threat for Kurkure.
• People usually like variety in flavors which is the up coming threat to the Kurkure because they
have only three flavors.
• Govt. policies may affect the growth of the Kurkure

“Recommendations
& Suggestions”
Here are some recommendations & suggestions which may open the new horizons of the growth and
progress of the company.

• The company can occupy a huge number of customers by keeping in mind about the preferences
and needs of customers regarding tastes and flavors,
• By introducing new tastes, flavors and retaining the quality standards can attract consumers of
other brands and pull them towards itself by leaving other competitors far behind and get
advantage over them.
• By delivering valued trade promotions to wholesalers and retailers, company can capture this
huge segment. This will allow Kurkure to stay in market effectively and people will order more
quantity due to its increased demand by customers
• The company should try to expand its wings to cover towns, villages, cities; making it available
to everybody.

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