Listen to the Sound of the DayYesterday, Today & Tomorrow

By

Zain Ul Abideen

MBA Class of 2012

A Company with a Heart and Soul

• To be recognized as a LEADING and PROGRESSIVELY FORWARD looking FOOD COMPANY, providing the best quality products to everyone in Pakistan

• To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen

Vision

A Company with a Heart and Soul

Core Values

• Follows the Highest Ethical Values & Professionalism

• Believes Product Quality is next to religion

• Pursues International Safe Food Standards & Hygiene to promote National Health since its very inception

• Environmentally sensitive & responsible

• Attains Technological Advancement in both human resources, plant & machinery

A Company with a Heart and Soul

PEEK FREANS PRICINGfamily pack half pack half roll pouch pack snack pack ticky pack

Rs. Rs. Rs. Rs. Rs. Rs.

Peek Freans Sooper

Sooper 30 15 10 5

Elaichi Sooper 30 15 10 5

Peek Freans Gluco 35 20 15 10 5

Peek Freans RIO

Chocolate 35 15 9 5

Vanilla 35 15 9 5

Strawberry Vanilla 35 15 9 5

Chocolate Vanilla 35 15 9 5

Peek Freans Peanut Pik 35 15

Peek Freans Peanut Pista 35 15

Peek Freans Party 35 15 10

Peek Freans Click 35 20 15 10 5

Peek Freans Marie 35 15

Peek Freans Whole Wheat Slices 35

Peek Freans Butter Puff 35 17 5

Peek Freans Saltish 35 17

Peek Freans Farm House Cookies

Chocolate Chip 80 50

Short Bread 80 50

Coconut Crunch 80 50

Peek Freans Original Sandwich biscuits

Lemon Flavor 17 9 5

Chocolate Flavor 17 9 5

17 9 5

PEEK FREANS PRICING

• EBML bases its price on the Cost Structure, Competitors’ prices and the Value given to a brand by the consumers

• Peak Freans Above pricing are on basis of Demographic segments. Peek Freans also provide bulk Discounting on Stores Like Metro, Departmental, and Hyper-star.

• There are gift vouchers within the biscuits packs, some of them are cash prizes, Children stuff and Family pack discount.

Placement

• EBML uses Indirect Marketing Channels, that is it has intermediaries (distributors) between the company itself and the retailers who in turn provide their products to the final consumers.

• The main task for EBM regarding market positioning is to position its products in such a way that it is able to create more consumer involvement in EBM products and to respond LU’s strategies in this regard.

PROMOTIONS

• It is a combination of its advertising, sales promotion activities, publicity campaigns and personal selling tactics.

• Three approaches they use are:– Informative Promotion– Persuasive Promotion– Comparison Promotion

Promotions• Informative Promotion

– Recently EBML has decided to concentrate on its leading products. In addition to this all new products EBML launches have to be presented to the public highlighting its features, its taste etc.

• Persuasive Promotion

– Various promotional activities conducted by EBML are centered towards persuasion. Considering the tough competition it faces from LU, EBML has to convince people into switching to or building preference for its brands.

• Comparison Promotion

– Once again, in the wake of competition EBML has to directly or indirectly position its products against other products in the market. In EBML’s case, comparison promotion is extremely important because every new or existing product of EBML, which is competing against LU’s product, has to be given an edge, a comparison, and a foothold.

Competitor

Competition

The major competitor of English biscuits is• “CONTINENTAL BISCUITS” (LU), which has a significant share of the market in terms of sales volume.

– LU basically has five to six brands which it markets in comparison to English Biscuits Manufacturers.

• Prince Milco LU• Tuc Candi• Gala 50-50

Competitive Advantage

• wide product line with Pied Piper Branding support

• A strong distribution network

• Innovation in terms of new ingredients

• Value pricing

• A well implemented offensive strategy

• Competitive advantage in terms of more varieties of biscuits

• Well Established brand equity

BCG Matrix

Product Line STBU Market Growth Rate % Relative Market Share %

Peek Freans Sooper Cash Cow 27 76

Peek Freans Gluco Cash Cow 29 71

Peek Freans RIO Question Mark 35 55

Peek Freans Peanut Pik Star 59 75

Peek Freans Peanut Pista Star 52 71

Peek Freans Party Question Mark 18 79

Peek Freans Click Question Mark 31 59

Peek Freans Marie Dog 2 42

Peek Freans Whole Wheat Slices Star 56 83

Peek Freans Butter Puff Cash Cow 31 70

Peek Freans Saltish Dog 5 32

Peek Freans Farm House Cookies Star 64 81

Peek Freans Original Sandwich biscuits Question Mark 22 71

• Current Times – Era of EBM Growth– Continue Price Freeze till 2007– Continue High Volume, Low Margin Strategy– Focus on Increasing Internal economies and efficiencies– Cost reductions without impacting product quality

• Self-power generation• Reduction of product wastages• Increase in plant efficiencies (new plants)• Focus on long-term contractual agreements for raw materials procurement• Alternate sourcing of packaging material (imported vs. local)

• No compromise on the product quality via any cutting of corners– Ensuring that the consumer is not cheated– Trust and confidence is maintained

Strategy since 2000 & Onwards

A Company with a Heart and Soul

• Focus on increasing Distribution Penetration into Rural Markets– Rural Development Programs– Opening of New Towns & Direct Servicing

• Focus on Demand Generation– Out-spending competition on media– Trial generation & repeat purchase

• Consumer Promotions• Brand Activations

– Heavy investment behind CSR initiatives to project positive brand & company image

• Demand of Brands > Ability to Supply– 5 Focus Brand Strategy

The Strategy of 2000 & Onwards contd…

A Company with a Heart and Soul

A Company with a Heart and Soul

THANK YOU