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Introduction

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English Biscuit Manufacturers (Private) Limited was established as a English Biscuit Manufacturers (Private) Limited was established as a joint venture company in 1965 with the name of PEEK FREANS joint venture company in 1965 with the name of PEEK FREANS PAKISTAN LIMITED. In 1966 the UK sponsor company was renamed as PAKISTAN LIMITED. In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited (ABIL), while the venture Associated Biscuits International Limited (ABIL), while the venture was renamed to English Biscuit Manufacturers (Private) Limited, was renamed to English Biscuit Manufacturers (Private) Limited, which stands to date. which stands to date.

EBM started manufacturing and marketing of world famous Peek EBM started manufacturing and marketing of world famous Peek Freans range in 1967 in order to provide Pakistani consumers with Freans range in 1967 in order to provide Pakistani consumers with good quality, nutritious and hygienically packed biscuits.good quality, nutritious and hygienically packed biscuits.

True to its corporate claim of 'The Legend Leads', EBM led the biscuit True to its corporate claim of 'The Legend Leads', EBM led the biscuit industry in Pakistan for over 30 years by its pioneer ship in providing industry in Pakistan for over 30 years by its pioneer ship in providing innovative and high quality biscuit tastes for every taste bud.innovative and high quality biscuit tastes for every taste bud.

EBM has been in the business of manufacturing and marketing EBM has been in the business of manufacturing and marketing branded biscuits in Pakistan for over 30 years. The brand name 'Peek branded biscuits in Pakistan for over 30 years. The brand name 'Peek Freans' is a household name, and people blindly believe in the quality Freans' is a household name, and people blindly believe in the quality of the products made under this brand.of the products made under this brand.

EBM is also the first Biscuit Company in Pakistan to have achieved EBM is also the first Biscuit Company in Pakistan to have achieved ISO - 9001 Certification in correspondence with its Institutional Slogan ISO - 9001 Certification in correspondence with its Institutional Slogan 'The Legend Leads'. The achievement also endorses company's firm 'The Legend Leads'. The achievement also endorses company's firm commitment to high standards of quality.commitment to high standards of quality.

IntroductionIntroduction

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Brand Range

Peek Freans

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Under the brand range Peek Freans Under the brand range Peek Freans the company today carries the the company today carries the largest variety of biscuit products largest variety of biscuit products including Marie, Gluco, Click, Sooper, including Marie, Gluco, Click, Sooper, Smile ,Tiffin, , Rio Strawberry Vanila, Smile ,Tiffin, , Rio Strawberry Vanila, Rio Choco Vanila, Rio Choclate, Rio Rio Choco Vanila, Rio Choclate, Rio Vanila, Party, Peanut Pik, Peanut Vanila, Party, Peanut Pik, Peanut Pista. And some new one in ques.Pista. And some new one in ques.

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History

The 80s, however, marked the entry of new arrivals in the biscuit industry, which also included international brands. The changing consumer preferences and wants provided the company to rethink its positioning in the market. The following brands entered in the Pakistani market:

Meiji Biscuits LU Biscuits Wolf Biscuits Swiss Biscuits Competition was brought to an equilibrium state

in the 90s with the establishment of Peek Freens and LU as the two main brands side by side.

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EBM is currently following the Production Concept of management, under which it produces products that are highly affordable and easily available in the market. In face of stiff competition, the company has undertaken a large-scale selling and promotion effort in order to increase its market share and create a stronger brand image. Therefore, it also follows the Selling Concept.

EBM has sponsored baby-contests and the Godzilla scheme in an attempt to attract more customers and to profitably reinforce its brands in the market.

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SWOT ANALYSIS

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Strengths A wide product line • The Pied Piper icon • 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 • Established brand equity

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Weaknesses

Vague impression in the minds of the consumers of the relationship of Pied Piper with EBM & Peek Freans both Inability to capitalize on individual brand advertising A wide product line which is cannibalizing the front runner brands Ineffective innovation in production

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Threats

Stiff competition from LU in terms of packaging, branding, and advertising

Changing consumer preferencesAvailability of foreign brands, like Oreo

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Opportunities

Converging the company’s distributorsAvailing more shelf space and enhancing

distribution coverageMore concentration on the “kids segment”

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MARKETING ENVIRONMENT

Macro Environment• Demographics• Economic• Natural• Technology• Political• Cultural

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Task Environment

• Markets• Customers• Competitors• Channels• Suppliers• Publics

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MACRO-ENVIRONMENT

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DEMOGRAPHICS

EBM describes biscuits as a food between meals and a favorite of snack for children. Changes in lifestyles and primarily the marketing and advertising efforts of the entire food industry have forced people to go for much healthier food. The various changes in the demographic features of Pakistan over the past few years have affected the production and distribution activities of EBM. At EBM, segmentation has also been done on the bases of demographics, with major focus on Income and Age segmentation.

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Migration of rural population to urban area

With a huge majority of the rural population migrating to the urban centers of the country for employment purposes, the major focus of the distribution of packaged foods is the urban population now, whereas previously biscuit companies such as Meiji and Montgomery were consumed to a great extent in the less developed areas of the country. However, the Kasur district in the province of Punjab is the biggest market for EBM brand Rio. But according to EBM, this is because the distributors are strong in Kasur due to which Rio has a 100% market share in the area.

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Age composition

According to the Economic Survey of Pakistan (1997-98 issue), the population of Pakistan stood at 139.024 million on Jan 1, 1998. Demographic trends in Pakistan are basically a function of the age composition. The high

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Cont…..

expectancy as well as mortality rates in the country have slowed down the economic progress to a great extent. Since the major target of the biscuit industry, as regards to the age composition is concerned, is the segment of the population under the age of 15 years and some in the 15 to 54 years age bracket, therefore the prospects seem bright for the biscuit manufacturers.

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mission statement

• What is our business?

• What is the product that we offer?• Who are our customers?• Who are our main competitors?• What do we aim to achieve?

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EBM is in the packaged foods business EBM offers food in between meals, that is

biscuits, thus fulfilling esteem as well social needs

Our main customers include retail stores, which in turn sell to consumers

EBM’s main competition is from CBL, the manufacturers of LU, Dane Foods and Meiji

To regain EBM’s lost market leadership position in the biscuit industry. We aim to deliver superior value to our customers through quality emphasis

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Trends in Household Income distribution in Pakistan

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As seen from the table above, the middle income group has gradually increased over the years. This has the indications that people now spend more on consumer goods, food being the most important one, and obviously biscuits since biscuits are the main snack between meals.

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Market Positioning (Kotler)

The main task for EBM regarding market positioning is to position its products in such away that it is able to create more consumer involvement in EBM products and to counteract LU’s strategies in this regard. The company can adopt any of the following positioning strategies:• On Product Attributes: The quality Of EBM’s products, 30 years of experience in the industry.

Benefits: hygiene and nourishment Classes of users: Rio for kids, Whole Wheat for health

conscious consumers. Against LU: We are dedicated to providing you with more

value at a standard price.

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CONCLUSION

Focus on profitable brands. Divest brands that are low market share holders and loss

makers. Promote promising brands as long as they do not

cannibalize the existing fron runners. Concentrate more on Value Based Pricing Strategy. Converge the existing multi based distributors into large

based high coverage channels. .

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Investing for a Brighter FutureBuilding a Healthier FutureLearning for a Better FutureCaring for a Greener FutureContributing towards a Fairer FutureLooking Forward to a Brighter FutureGRI References

EBM’s Dedication to Quality

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Recommendations:

For positioning, we recommend the following strategies:

EBML needs to focus more on the consumer segment of children. It requires a careful study of the perception of the kids regarding the different biscuit brands. The company is missing on an important segment and needs development in this area. As suggested before, the company can reposition its brands and redesign the products in the way that kids are attracted towards these brands due to their unique shapes (cartoon characters etc.)

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Investing in the Fitnessof the Nation

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Investing in the Fitnessof the Nation

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Cont…

Capitalizing on its Pied Piper icon and utilizing it as a symbol of an entire family of brands rather than simply a company identification.

More innovation in terms of packaging, the company should move away from the typical white packaging and bring out more colorful versions of the packages.

Should emphasize on its various taste elements in the different brands. For example, zeera in Click, peanuts in Peanut Pik and chocolate chips in Smile.

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Investing in the Fitnessof the Nation

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Need/Want Analysis

For every business, it is necessary to identify the needs and wants of the consumers that the products fulfill. Accordingly, the products should be produced to satisfy these consumer needs to the greatest extent.

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Biscuits would satisfy a person’s social needs.

Consumers would search for a brand of biscuits that would give them the most value, quality, features and satisfaction for their money.

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The reason why people have accepted biscuits in their lifestyles is because of the growing concern for healthier food. In search of healthier foods, people prefer packaged food and biscuit manufacturers provide them that.

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Special Offers for the Consumers

Adopting the strategy of “Market Penetration”, EBM has introduced special offers in the biscuit market with its product line. In this respect,

The company offers special prizes inside the packs.

Coupons for prizes inside the packs. These prizes can be redeemed at the specified retail outlets.

• The consumers have to buy any EBM/Peek Freans Biscuit special promotion packs to see what they have won.

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Characteristics Affecting Consumer Behavior in the Biscuit Market

Social class of the consumer Members of a social class share similar beliefs,

interests, values and behaviors. The social class of a consumer greatly influences his or her buying behavior as well as brand preferences.

Family: Family members can exert influence on each other in terms of buying decisions. In case

of biscuits, brands that are generally liked by all members of the family are purchased. For instance, it is generally observed that on an average, all family members go for Prince by LU, Rio and Marie by EBM.

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COMPETITORS The major competitors of English biscuits are LU, Dane

foods, Meiji but the number one competitor is LU, which has a significant share of the market in terms of sales volume. LU basically has five to six brands which it markets vigorously in comparison to English Biscuits Manufacturers which has about 53 brands under EB and about 44 brands under Coronet Foods Private Ltd. (CFL).

The reason that LU is the market leader is because of their ability to study the trends in the market better and then adapt to them and thus capture a higher market share.

EBM has been in the market for thirty years and were the first to start the cream biscuits but did not promote them much, in comes LU they make a better cream biscuit promote well enough and they become the market leaders.

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Brief Profiles of the Main Competitors

EBML’s main competitors in the biscuit industry are CBL and Dane Foods.

Continental Biscuits Limited (CBL) • Prince • Milco LU • Tuc • Candi • Gala • 50-50

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Thank you