Description
In this report, Marketing activities of Hilal Kake, a product of house of Hilal are presented after a detailed research and survey.
ACKNOWLEDGEMENT
We would like to extend our thanks to Ms. Shahnaz Meghani who
conducted our Principles of Marketing course for providing us the
opportunity to practice, performing all that we had studied during the
semester. This has definitely been unique learning experience for us. This
course has helped a lot in accepting the theoretical concept and learning
the practical concept of Marketing. We are very thankful to her for her
guidance and help which she has extended throughout the course of the
report. We are grateful to her for the valuable time she had given us for
this report in particular and for the overall learning of Marketing. We are
also indebted to Mr. Umar Sheikh, Marketing manager of Hilal Foods and
Mr.Saad Feroz, Brand Manger Hilal foods, who gave us their valuable time.
2 | Page
Letter of Transmittal
December 9, 2013
Ms. Shahnaz Meghani
Associate Professor,
Institute of Business Management,
Karachi.
Dear Ms. Shahnaz Meghani:
Our group is submitting the attached report entitled Marketing Plan of
Hilal Special Kake for your kind review and consideration.
This report presents a brief explanation of a Marketing Plan, overview of
Hilal Foods, Marketing Plan of Hilal Special Kake and recommendations to
the concerned company’s marketing practices.
We hope you find this report satisfactory.
Sincerely yours students,
Erum Saleem- MBA(16171)
Hina Urooj -MBA(15933)
Maha Gul-MBA(15550 )
Tajammul Siddiq -MBA( )
Table of Contents
3 | Page
Overview of the Company
Hilal’s Corporative objective...............................................................................5
Market Trend and Size of the market..................................................................6
Entry of Hilal Special Kake.................................................................................7
Environmental Analysis......................................................................................7
PEST Analysis (Macro Environment)....................................................................7
Micro Environment............................................................................................. 8
COMPETITIVE ADVANTAGE..................................................................................9
BCG Matrix for Hilal Confectionery....................................................................10
SWOT Analysis................................................................................................. 11
Research and Development..............................................................................12
Segment Profile............................................................................................... 14
Targeting......................................................................................................... 14
Positioning...................................................................................................... 14
Marketing Plan................................................................................................ 16
Product........................................................................................................... 16
Product Life Cycle............................................................................................ 17
Growth Strategies............................................................................................ 18
Branding Strategies.........................................................................................19
Price............................................................................................................... 20
Place............................................................................................................... 21
Supply Chain................................................................................................... 22
Promotion....................................................................................................... 23
Promotional Mix............................................................................................... 23
Conclusion....................................................................................................... 24
Recommendation............................................................................................. 24
References...................................................................................................... 25
Overview of the Company
4 | Page
Hilal Foods
Hilal is Pakistan’s No. 1 confectionery and cake manufacturers with its
products exported to over 20 countries around the world. They are
dedicated to the art of producing fun, innovative and delicious products
for sweet lovers of all ages. Hilal’s products offer tantalizing experiences
that sparks the imagination in people who eat their candy. Of course, this
has been Hilal’s goal since their inception in 1957. Today, Hilal Candy
continues to make some of the best candy in Pakistan. Along with
candies, they also help inspire kids to be creative and dream up new
worlds. Hilal products can be enjoyed by kids and adults alike, and their
products come in an array of flavors, shapes and sizes
Vision Statement of Hilal Foods
“To become a global food leader by spreading smiles through diversified
hilal products”
Mission Statement of Hilal Foods
“As Pakistan’s leading Confectionery Company, our mission of giving you,
“Reasons to Smile” is to provide consumers with the best tasting, most
delicious choices in a wide range of confectionery and beverages for all
occasions”-
Hilal’s Corporative objective
Hilal’s co-operative objectives is to expand its business in whole Pakistan
and then to capture a large International market. However they are still
exporting few products through distributors to different countries. They
want that Hilal’s products can be enjoyed by kids and adults alike. Hilal
wants to give consumers a reason to smile.
5 | Page
Market Trend and Size of the market
Hilal has one of the biggest market sizes among other confectionery
makers in the country. They are market leaders in an organized industry
and comprises of more than 70% approx. share of the market. The market
for Confectionery in Pakistan increased between 2002-2007, growing at
an average annual rate of 7.3 %. This growing trend is giving
opportunities to Hilal to rise its baked product in the market.
Hilal Product Mix
Candi
es
Chew Wafer
Toffee
s
s
-Rum
-Short
Khoop Pum
Cut
ra
Roll
Aamr
us
-Pan
Pasan
d
-Rum
Pum
Fruity
Roll
Chocol
ate
Choco
4
-Bar
Bar
-Chick
Chick
Powde
red
Drinks
Sunsip
Lemo
pani
Sunsip
Thand
a
Orang
e
Chora
n
Chatn
i
Hajmo
ola
Super
sour
6 | Page
Jellie
s
Cake Chewi
Pan
s
ng
Masala
Gum
’s
-Ding -Tulsi
Pizza Spec Dong
ial
-Jum Kake Raseel
Jum
Fresh i
-Cup Up
supari
Kake
Kach
-Froot
a
Up
Aam Kake
Zoom
Berr
y
Bites
Chilla
x
-Egg
-Fish
Gumb
y
Mirc
h
Masa
la
Amro
od
Peac
h
-Milk
Fils
Funn
uy
Teet
h
-Minta
Energi
c
Mixe
d
Fruit
Entry of Hilal Special Kake
Hilal has been working as the leading of Pakistan since 1957. It had been
offering candies, chocolates, bubble gums, chewing gums, jellies, wafers,
Chocolates, powdered drinks and Pan Masala’s. In 2010, Ulker a Turkish
confectionary launched Peki cakes. Hilal found the gap between demand
and supply of cakes in this particular category, and entered into the
market in 2010 with Hilal Special Kakes.
Marketing Plan Of Hilal Special Kake
Environmental Analysis
PEST Analysis (Macro Environment)
? ? ? Political & Legal Environment
Tax rates and tax structure are being set by government. Electricity
prices, fuel and petrol prices are also set by a government. It has a
direct impact on Hilal’s Profit margins. Increase in the tax rates,
7 | Page
duties or electricity and petrol prices increases the cost of
production. Adjusting price of Hilal Special Kake is not possible for
company; it is difficult to take out one additional rupee after 10 for a
10 rupee product, so it has to sacrifice the profit margins.
? ? ? Economic Environment
When poverty gets higher, these sorts of industries grow. In case of
high inflation value of money goes down. It makes more costly to
import manufacturing machineries and raw materials.
? ? ? Socio-Cultural Environment
In Pakistani culture social gatherings are more often. Most of the
Middle class families take tea in the evening. In social gatherings, at
tea time and to serve guests Hilal kake can be a better option.
? ? ? Technological Environment
In today’s highly competitive environment it has become essential
to equip with technological advancement and automation. Hilal
Kake has the state of art to get difficult compositions. To keep items
fresh and safe from fungus for 6 months Hilal foods use latest
technology. Hazard Analysis is also done at Hilal foods for safety
precautions.
Micro Environment
? ? ? Market Analysis
Hilal has a mass market and capturing a large share in Layer Cake
market.
? ? ? Company
Company itself is the part of Micro environment. A Hilal food is the
oldest confectionary in Pakistan. It is well known organization in
Pakistan. There is a strong integration among departments of Hilal
foods.
? ??? Suppliers
Hilal believes in maintaining strong relationship with suppliers.
? ? ? Intermediaries
Hilal Marketing Team is young and energetic and believes in making
partnership for creating, communicating and delivering value to the
8 | Page
final consumers. It has good relations with its media partners,
finance division and other distributors.
? ? ? Competitors
Hilal Special Kake has strong competition with Peki by Ulker. Peki is
the first mover in this category. Other competitors include Euro Cake
and bakery baked cakes. Hilal Special Kake is also facing internal
competition with Hilal Cup kake.
? ? ? Customers
Consumers are the most important part of any organization’s micro
environment. Hilal Kake chosen a mass market, it is essential to
provide quality, availability, variety and taste to the customers.
? ? ? Purchase Motivation
KAKE is a ready to eat snack, so purchase decision of the consumer
might not be as long as it could be in general means. Consumer will
show variety seeking buying behavior in this sort of product. Buying
nature will be frequent, less expensive, low involvement and quick
decision.
COMPETITIVE ADVANTAGE
Hilal’s Kake is produced for middle class because normally lower class in
Pakistan goes for product which is locally produced by bakers with no
good or attractive packing. They also have cheaper prices.
There are several reasons why Hilal is better than other competitor:
Brand name: Hilal Kake is known everywhere because of Hilal’s strong
market position.
Price: they are offering Kake in Rs 5 and Rs10 but its competitors are
offering cake in Rs 10. So for the consumer Rs 5 is very much affordable.
Variety of Flavors: They introduce new flavors day by day. They
introduced unique flavor which is not available in any other soft cake
company. Flavors like blueberry, khopra etc.
Softness: Hilal Kake is much softer than any other soft cake in the
market. Most people like it test and buy it.
Packaging: The packaging of Hilal Kake is most attractive. People can
find out it among many different cakes.
9 | Page
Competitive Advantage: Although above discussed points are
contributing to Hilal Kake’s strong position, but wide distribution of Hilal
kake is the competitive advantage of the brand.
BCG (Growth-Share) Matrix
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a
company’s position in terms of its product range. It helps a company think
about its products and services and make decisions about which it should
keep, which it should let go and which it should invest in further.
BCG Matrix for Hilal Kake
10 | P a g e
In BCG matrix, KAKE will be placed as Question Mark; Cake market is
relatively growing but market share of Hilal special kake. They want to
come up with strategies to get market from RS.5 Layer cake to Hilal
Special cake “KAKE”.
HILAL Special Cake
“KAKE”
Dingdong
Khopra
Candy
Sunsip
Tulsi
Fresh up
Roller Wafer
Gummies
SWOT Analysis
Strengths:
Weakness:
? They are Market Leader &
exporter of confectionery
products.
? Reactive strategies to market.
? They are catering to multiple
segments with different
brands.
? Weak Positioning (Reason to
smile)
? Strong Internal Competition
? Power brands have strong
emotional connections with
consumers.
? Reactive Advertisement
? Intensive Promotion
? Lack of Innovation
? Hazard Analysis & IDO
certified.
11 | P a g e
? Wide Distribution
? Product Development
Threats:
Opportunities:
? Confectionery market is quite
PRICE Sensitive as mainly
they cater to the kids.
? Increased competition,
specifically from the small
producers of low quality
confectionery products in the
unorganized sectors who do
not pay their taxes and
illegally operates their
businesses.
? Turkish and other Iranian
products especially in KAKE
category are biggest threats
for the HILAL “KAKE” market
? As dollar prices are
increasing, there is significant
potential in exporting more
products.
? Growing population in
Pakistan is expanding the
market size continuously.
? They can appeal to health
conscious segment of the
consumers by launching some
sugar free candy or other
confectionery items.
Research and Development
12 | P a g e
Marketing Research: Whenever a company tends to launch a new product
or service in the market or it wants to find out new opportunities it
conducts a market research. It is important because it helps marketers
know their customers and it tells them that how the needs and wants of
the customers are changing now days. Without having all these insights a
company won’t e able to offer people with something of value and won’t
be able to serve them better than competitors and would fail to retain and
keep them.
Hilal now tends to focus on research and development which it was
lacking until recently as they did not have a marketing department. The
marketing department was introduced only couple of years back and it
emphasizes on taking customer insights and is very much interested in
knowing what their customers would really want to have.
The research conducted at Hilal is on both qualitative and quantitative
manners. Besides, Blind Testing is also preferred.
Research Methodologies used by Hilal
Confectionary is a highly competitive industry in Pakistan. Continuous
research is exceedingly essential. Hilal Foods conducts various research
programs using primary and secondary sources to get qualitative and
quantitative results.
Secondary Data Collection
Hilal foods gather data from its sales department, creative department
and retailers to get insight of market trends and new product
development.
13 | P a g e
Primary Data Collection
Central Location Testing
A Central Location Test (CLT) is a face-to-face survey method where
respondents are invited, with or without prior notice, to some convenient
place (ranging from a public meeting place to a research field facility.
This type of testing is usually used for research into new or modified
products, though it also finds successful application in testing advertising
or packaging materials. Hilal Special Kake is modified form of Hilal Kake.
Hilal foods also did central location testing for its Special Kake.
Blind Testing
Hilal Foods does blind test market research. It is done by asking
consumers to compare the tastes of different brands, usually competitor’s
brands, the identities of the products are concealed, or otherwise
consumers will generally tend to prefer the brand they are familiar with.
Hilal Foods use blind testing to get significant insights on how a brand can
improve its taste.
Screening Questionnaires
Screening process builds the foundation for reliable and valid data
collection. Hilal Foods use screening questionnaire method to get
customer attitude towards brands, frequency of purchase, competitive
analysis etc. This research is carried out by research agencies.
14 | P a g e
15 | P a g e
Segment Profile
Targeting
Targeting is to select segment which company can best cater to
respective needs and wants of the consumers. Hilal KAKE targeted not
only any single segment but the mixture of some variables of geographic,
demographics, psychographic and behavioral segmentations.
Positioning
Hilal is dynamic changing company and always looks to opportunity to
build a strong emotional attachment with consumers through their
products. Hilal is a big company in a market and recently they are
16 | P a g e
planning to expand their warehouse networks. They have strong brand
image in consumer minds.
Slogan: REASONS TO SMILE
Marketing Plan of Hilal Special
Kake
Product
Hilal Special KAKE is the product of baked product line of the Hilal
Confectionery. It is a Fresh, high quality, nutritious layer cakes. It is
available in many different flavors such as Chocolate, Coffee, Chocolate
Chip, and Strawberry, Blueberry, Khopra and others.
Creating Value
Hilal Special Cake is creating value for
customers by meeting their needs and
wants particularly it is beneficial for
mothers who give this cake to their kids in
lunch. Secondly, in Pakistani society we are
usually habitual of eating some baked items
at tea time. So in this way Hilal “KAKE” is
providing a core benefit of ready to eat healthy cake
in different flavors.
Product Life Cycle
PLC consists of the stages that a product goes through by the course of its
lifetime/existence in the market, in terms of its sales and profits. It has 5
stages:
Product Development:
17 | P a g e
The point where there are no sales as the product is still in the production
and development stage and only investments costs are there.
Introduction:
When the new product is launched in the market and made available for
purchase. As it’s only the initial stage so it takes time for sales to happen
and generate profits. The costs are still high due to distribution and
promotion expenses involved.
Growth:
When the product finally gets to be accepted by the customers and
purchases begin. Here the sales go up quickly as more and more tend to
buy the product. Here competitors would also enter the market.
Maturity:
The stage where the products sales has gone slow and by that time the
product has become so strong that it gives a tough competition to the
competitors and at the end only well-established competitors remain.
Decline:
The stage where the product ceases to exists and its sales start to go
down drastically because it was able to keep up well with the competitors
and wasn’t able to come up with effective competitive strategies.
Hilal Special Kake’s PLC
Regarding PLC, the brand Hilal is in maturity stage, as it has been in the
market since a very long time and it possesses recognition in the minds of
the people, and people tend to associate themselves with Hilal.
18 | P a g e
The product form, i.e. layered cakes is in the introductory stage, as it
hasn’t been long since they were introduced, so there is a lot room for
innovation and differentiation and much could be done so as to make it
the preferred choice of the customers.
The product category is lies in the maturity stage, as there a lot of
varieties of cakes available in the market and in different forms. Namely,
Cup cakes, Sponge cakes, Swiss rolls etc.
Growth Strategy
Market Penetration
A strategy for company growth by increasing sales of current products to
current market segments without changing the product. Hilal have used
this growth strategy to increase their sales. As far as their Kake is
concern, they introduced different flavors like Blueberry, chocolate,
khopra and many other flavors to increase their sales.
Branding Strategies
Branding decisions are one of the most crucial decisions that a marketer
has to make. People tend to associate themselves with brands. It’s like an
19 | P a g e
asset to the company. Branding decision choices that a company might
make are:
Line Extension:
When a company already has a certain line of product and it comes with
different forms, sizes, or colors under the same product category.
Brand Extension:
When name of an existing brand is used for a new product category it is
called Brand Extension.
Multi-branding:
When the product category remains the same but there are different
brands under that category. This is done so as to cater to different subsegments under one big segment.
In case of Hilal Kake, they have followed Line Extension. They already
had a product line by the name of Hilal Kake, after which they came up
with Hilal Special Kake, thus coming up with a new product form in the
existing product line. They did so because Hilal is very well known among
the customers and accepting a product from them was easier and more
likely. And it proved fruitful for them as well as customers accepted the
product widely even though at the initial stage of the launch.
20 | P a g e
Price
Pricing Objectives
Market for Hilal KAKE is quite price sensitive market. If price of the
product goes so low it will certainly results in higher disloyalty from
consumers. Hilal’s pricing objective is to become market leader by selling
in volume as well as providing the best quality layer cakes. They usually
follow pricing of the competitors.
Pricing Strategy
Pricing strategies keep on changing through a products life cycle. There
are certain types of pricing strategies that a company can choose from:
Market skimming: Where the product is one of its kind and is in the
introductory stage, its priced higher so as to gain as much market share
as possible. Because later on as competitors come in it lowers down its
price.
Market Penetration: The price is comparatively lower than the
competitor because the company wants to penetrate in the market and
attract more and more buyers .
Product Line pricing: Different products in a line are priced different
according to the differences in the products in that line.
Value Based Pricing: The price is set according to the value the
product is providing and the company believes that the price they are
setting justifies the value they are offering.
Superb Pricing: When the price of the product remains the same but
something more is offered.
Hilal followed value based pricing, as in Rs.10 they are giving a bigger
size, more flavors, and improved quality all in one, something which was
not done by their competitors and which proved to be an addition to
competitive advantage of Hilal.
21 | P a g e
Place (Distribution)
Distribution refers to the steps taken to move and store goods from the
supplier stage to a customer stage in supply chain. Distribution itself is
the most significant part and driver of the overall profitability of the
company because it influences the cost of supply chain and also the
customer experience. It also creates time and place utility. They transfer
or depot all stock from their factories to distributors and then from
distributors, their goods transfer to wholesalers and then to retailers and
then directly deliver to customers. Hilal have a direct contact with
retailers like super stores, so they directly transfer their goods to super
stores as well.
As far as distribution is concern, Hilal uses intensive distribution (stocking
the product in many outlets as possible); to make sure that it is available
in every outlet. Their products are easily available allover Pakistan at
every road corner store as well as at all big stores. It is available in all
provinces in urban, suburban and rural areas but in rural areas, their
distribution is limited.
Hilal manages relationship with their suppliers, distributors and resellers
by offering incentives against which they are expected to achieve certain
sales target.
22 | P a g e
SUPPLY CHAIN STRUCTURE OF HILAL
CONFECTIONARY
L
W
W
P
C
A
O
A
G
R
R
I
E
E
S
H
H
T
O
O
I
U
U
C
S
S
S
E
E
23 | P a g e
Promotion
Promotional Goals
There are three basic goals of promotion
Awareness: Where the company is tells or informs their customers
about their offering and the benefits it brings along.
Persuade: When marketers are tend to convince their target market to
go and make the actual purchase.
Remind: When the company is only reminding its customers that we are
still there and we still exist. It’s just to tell them that we haven’t gone
anywhere.
The promotional goal was to inform customers about the launch of Hilal
Special Kake, its new and unique flavors and to inform them that they
have come up with something which is meant for the whole of the family
and everyone can equally enjoy it.
24 | P a g e
Promotional Mix
Promotional mix consists of all the promotional tools a company might
use so to communicate their target market about their offering. They
include electronic media, print media, social media, direct marketing,
personal selling, public relations etc.
They had promoted their product through TVCs, printed ads, bill boards as
well as through social media as well. The reason being the product is
meant for the whole of the family and it was targeted for the mass
market, so it was promoted using various channels so that the message
reaches in wider terms. Hial is using social media effectively to enrich its
promotional mix.
Advertising Theme
It was a reactive strategy that was followed by Hilal in response to Peki by
Ulker.
Conclusion
The marketing plan is a cycle that begins and ends
with evaluation. The final stage in the marketing plan is to
measure the outcomes of the marketing activities against the
original objectives and targets. To bring the range of Hilal kakes to
market, Hilal Foods has put together an effective marketing mix,
but there are some shortcomings related to promotional
strategies. Hilal has the capability to response competitor’s
product launch due to high standing of market share. Growth of
Confectionary industry is a good sign for Hial Foods.
Recommendations
25 | P a g e
? Hilal should take proactive stances rather applying reactive
strategies.
? Continuous environmental analysis must be followed.
? Hilal must clearly identify its target market to make specific
marketing programs.
? Improvement of Promotional and advertising theme is
required.
? A fresh and healthy image should be used to promote Hilal
Special Kakes in the media. Kids at school lunch time, family
parties and Tea time fun would me more attractive and
useful.
? Introducing new variant “Sugar free soft cakes” which offer
product development and market development as well,
would also help Hilal Foods to hold leading position.
? Telling customers about new uses of product such as using
with deserts and custards will increase frequency of use or
usage.
References
Books:
? Principle of marketing by Philip Kotler
? Principles of Marketing by Evans Berman
Websites
1.http://www.hilalcandy.com/
2.https://www.facebook.com/Hilal.Confectionery.Pvt.Ltd
26 | P a g e
3.http://www.valuebasedmanagement.net/methods_bcgmatrix.
html
27 | P a g e
doc_169257632.docx
In this report, Marketing activities of Hilal Kake, a product of house of Hilal are presented after a detailed research and survey.
ACKNOWLEDGEMENT
We would like to extend our thanks to Ms. Shahnaz Meghani who
conducted our Principles of Marketing course for providing us the
opportunity to practice, performing all that we had studied during the
semester. This has definitely been unique learning experience for us. This
course has helped a lot in accepting the theoretical concept and learning
the practical concept of Marketing. We are very thankful to her for her
guidance and help which she has extended throughout the course of the
report. We are grateful to her for the valuable time she had given us for
this report in particular and for the overall learning of Marketing. We are
also indebted to Mr. Umar Sheikh, Marketing manager of Hilal Foods and
Mr.Saad Feroz, Brand Manger Hilal foods, who gave us their valuable time.
2 | Page
Letter of Transmittal
December 9, 2013
Ms. Shahnaz Meghani
Associate Professor,
Institute of Business Management,
Karachi.
Dear Ms. Shahnaz Meghani:
Our group is submitting the attached report entitled Marketing Plan of
Hilal Special Kake for your kind review and consideration.
This report presents a brief explanation of a Marketing Plan, overview of
Hilal Foods, Marketing Plan of Hilal Special Kake and recommendations to
the concerned company’s marketing practices.
We hope you find this report satisfactory.
Sincerely yours students,
Erum Saleem- MBA(16171)
Hina Urooj -MBA(15933)
Maha Gul-MBA(15550 )
Tajammul Siddiq -MBA( )
Table of Contents
3 | Page
Overview of the Company
Hilal’s Corporative objective...............................................................................5
Market Trend and Size of the market..................................................................6
Entry of Hilal Special Kake.................................................................................7
Environmental Analysis......................................................................................7
PEST Analysis (Macro Environment)....................................................................7
Micro Environment............................................................................................. 8
COMPETITIVE ADVANTAGE..................................................................................9
BCG Matrix for Hilal Confectionery....................................................................10
SWOT Analysis................................................................................................. 11
Research and Development..............................................................................12
Segment Profile............................................................................................... 14
Targeting......................................................................................................... 14
Positioning...................................................................................................... 14
Marketing Plan................................................................................................ 16
Product........................................................................................................... 16
Product Life Cycle............................................................................................ 17
Growth Strategies............................................................................................ 18
Branding Strategies.........................................................................................19
Price............................................................................................................... 20
Place............................................................................................................... 21
Supply Chain................................................................................................... 22
Promotion....................................................................................................... 23
Promotional Mix............................................................................................... 23
Conclusion....................................................................................................... 24
Recommendation............................................................................................. 24
References...................................................................................................... 25
Overview of the Company
4 | Page
Hilal Foods
Hilal is Pakistan’s No. 1 confectionery and cake manufacturers with its
products exported to over 20 countries around the world. They are
dedicated to the art of producing fun, innovative and delicious products
for sweet lovers of all ages. Hilal’s products offer tantalizing experiences
that sparks the imagination in people who eat their candy. Of course, this
has been Hilal’s goal since their inception in 1957. Today, Hilal Candy
continues to make some of the best candy in Pakistan. Along with
candies, they also help inspire kids to be creative and dream up new
worlds. Hilal products can be enjoyed by kids and adults alike, and their
products come in an array of flavors, shapes and sizes
Vision Statement of Hilal Foods
“To become a global food leader by spreading smiles through diversified
hilal products”
Mission Statement of Hilal Foods
“As Pakistan’s leading Confectionery Company, our mission of giving you,
“Reasons to Smile” is to provide consumers with the best tasting, most
delicious choices in a wide range of confectionery and beverages for all
occasions”-
Hilal’s Corporative objective
Hilal’s co-operative objectives is to expand its business in whole Pakistan
and then to capture a large International market. However they are still
exporting few products through distributors to different countries. They
want that Hilal’s products can be enjoyed by kids and adults alike. Hilal
wants to give consumers a reason to smile.
5 | Page
Market Trend and Size of the market
Hilal has one of the biggest market sizes among other confectionery
makers in the country. They are market leaders in an organized industry
and comprises of more than 70% approx. share of the market. The market
for Confectionery in Pakistan increased between 2002-2007, growing at
an average annual rate of 7.3 %. This growing trend is giving
opportunities to Hilal to rise its baked product in the market.
Hilal Product Mix
Candi
es
Chew Wafer
Toffee
s
s
-Rum
-Short
Khoop Pum
Cut
ra
Roll
Aamr
us
-Pan
Pasan
d
-Rum
Pum
Fruity
Roll
Chocol
ate
Choco
4
-Bar
Bar
-Chick
Chick
Powde
red
Drinks
Sunsip
Lemo
pani
Sunsip
Thand
a
Orang
e
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Entry of Hilal Special Kake
Hilal has been working as the leading of Pakistan since 1957. It had been
offering candies, chocolates, bubble gums, chewing gums, jellies, wafers,
Chocolates, powdered drinks and Pan Masala’s. In 2010, Ulker a Turkish
confectionary launched Peki cakes. Hilal found the gap between demand
and supply of cakes in this particular category, and entered into the
market in 2010 with Hilal Special Kakes.
Marketing Plan Of Hilal Special Kake
Environmental Analysis
PEST Analysis (Macro Environment)
? ? ? Political & Legal Environment
Tax rates and tax structure are being set by government. Electricity
prices, fuel and petrol prices are also set by a government. It has a
direct impact on Hilal’s Profit margins. Increase in the tax rates,
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duties or electricity and petrol prices increases the cost of
production. Adjusting price of Hilal Special Kake is not possible for
company; it is difficult to take out one additional rupee after 10 for a
10 rupee product, so it has to sacrifice the profit margins.
? ? ? Economic Environment
When poverty gets higher, these sorts of industries grow. In case of
high inflation value of money goes down. It makes more costly to
import manufacturing machineries and raw materials.
? ? ? Socio-Cultural Environment
In Pakistani culture social gatherings are more often. Most of the
Middle class families take tea in the evening. In social gatherings, at
tea time and to serve guests Hilal kake can be a better option.
? ? ? Technological Environment
In today’s highly competitive environment it has become essential
to equip with technological advancement and automation. Hilal
Kake has the state of art to get difficult compositions. To keep items
fresh and safe from fungus for 6 months Hilal foods use latest
technology. Hazard Analysis is also done at Hilal foods for safety
precautions.
Micro Environment
? ? ? Market Analysis
Hilal has a mass market and capturing a large share in Layer Cake
market.
? ? ? Company
Company itself is the part of Micro environment. A Hilal food is the
oldest confectionary in Pakistan. It is well known organization in
Pakistan. There is a strong integration among departments of Hilal
foods.
? ??? Suppliers
Hilal believes in maintaining strong relationship with suppliers.
? ? ? Intermediaries
Hilal Marketing Team is young and energetic and believes in making
partnership for creating, communicating and delivering value to the
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final consumers. It has good relations with its media partners,
finance division and other distributors.
? ? ? Competitors
Hilal Special Kake has strong competition with Peki by Ulker. Peki is
the first mover in this category. Other competitors include Euro Cake
and bakery baked cakes. Hilal Special Kake is also facing internal
competition with Hilal Cup kake.
? ? ? Customers
Consumers are the most important part of any organization’s micro
environment. Hilal Kake chosen a mass market, it is essential to
provide quality, availability, variety and taste to the customers.
? ? ? Purchase Motivation
KAKE is a ready to eat snack, so purchase decision of the consumer
might not be as long as it could be in general means. Consumer will
show variety seeking buying behavior in this sort of product. Buying
nature will be frequent, less expensive, low involvement and quick
decision.
COMPETITIVE ADVANTAGE
Hilal’s Kake is produced for middle class because normally lower class in
Pakistan goes for product which is locally produced by bakers with no
good or attractive packing. They also have cheaper prices.
There are several reasons why Hilal is better than other competitor:
Brand name: Hilal Kake is known everywhere because of Hilal’s strong
market position.
Price: they are offering Kake in Rs 5 and Rs10 but its competitors are
offering cake in Rs 10. So for the consumer Rs 5 is very much affordable.
Variety of Flavors: They introduce new flavors day by day. They
introduced unique flavor which is not available in any other soft cake
company. Flavors like blueberry, khopra etc.
Softness: Hilal Kake is much softer than any other soft cake in the
market. Most people like it test and buy it.
Packaging: The packaging of Hilal Kake is most attractive. People can
find out it among many different cakes.
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Competitive Advantage: Although above discussed points are
contributing to Hilal Kake’s strong position, but wide distribution of Hilal
kake is the competitive advantage of the brand.
BCG (Growth-Share) Matrix
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a
company’s position in terms of its product range. It helps a company think
about its products and services and make decisions about which it should
keep, which it should let go and which it should invest in further.
BCG Matrix for Hilal Kake
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In BCG matrix, KAKE will be placed as Question Mark; Cake market is
relatively growing but market share of Hilal special kake. They want to
come up with strategies to get market from RS.5 Layer cake to Hilal
Special cake “KAKE”.
HILAL Special Cake
“KAKE”
Dingdong
Khopra
Candy
Sunsip
Tulsi
Fresh up
Roller Wafer
Gummies
SWOT Analysis
Strengths:
Weakness:
? They are Market Leader &
exporter of confectionery
products.
? Reactive strategies to market.
? They are catering to multiple
segments with different
brands.
? Weak Positioning (Reason to
smile)
? Strong Internal Competition
? Power brands have strong
emotional connections with
consumers.
? Reactive Advertisement
? Intensive Promotion
? Lack of Innovation
? Hazard Analysis & IDO
certified.
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? Wide Distribution
? Product Development
Threats:
Opportunities:
? Confectionery market is quite
PRICE Sensitive as mainly
they cater to the kids.
? Increased competition,
specifically from the small
producers of low quality
confectionery products in the
unorganized sectors who do
not pay their taxes and
illegally operates their
businesses.
? Turkish and other Iranian
products especially in KAKE
category are biggest threats
for the HILAL “KAKE” market
? As dollar prices are
increasing, there is significant
potential in exporting more
products.
? Growing population in
Pakistan is expanding the
market size continuously.
? They can appeal to health
conscious segment of the
consumers by launching some
sugar free candy or other
confectionery items.
Research and Development
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Marketing Research: Whenever a company tends to launch a new product
or service in the market or it wants to find out new opportunities it
conducts a market research. It is important because it helps marketers
know their customers and it tells them that how the needs and wants of
the customers are changing now days. Without having all these insights a
company won’t e able to offer people with something of value and won’t
be able to serve them better than competitors and would fail to retain and
keep them.
Hilal now tends to focus on research and development which it was
lacking until recently as they did not have a marketing department. The
marketing department was introduced only couple of years back and it
emphasizes on taking customer insights and is very much interested in
knowing what their customers would really want to have.
The research conducted at Hilal is on both qualitative and quantitative
manners. Besides, Blind Testing is also preferred.
Research Methodologies used by Hilal
Confectionary is a highly competitive industry in Pakistan. Continuous
research is exceedingly essential. Hilal Foods conducts various research
programs using primary and secondary sources to get qualitative and
quantitative results.
Secondary Data Collection
Hilal foods gather data from its sales department, creative department
and retailers to get insight of market trends and new product
development.
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Primary Data Collection
Central Location Testing
A Central Location Test (CLT) is a face-to-face survey method where
respondents are invited, with or without prior notice, to some convenient
place (ranging from a public meeting place to a research field facility.
This type of testing is usually used for research into new or modified
products, though it also finds successful application in testing advertising
or packaging materials. Hilal Special Kake is modified form of Hilal Kake.
Hilal foods also did central location testing for its Special Kake.
Blind Testing
Hilal Foods does blind test market research. It is done by asking
consumers to compare the tastes of different brands, usually competitor’s
brands, the identities of the products are concealed, or otherwise
consumers will generally tend to prefer the brand they are familiar with.
Hilal Foods use blind testing to get significant insights on how a brand can
improve its taste.
Screening Questionnaires
Screening process builds the foundation for reliable and valid data
collection. Hilal Foods use screening questionnaire method to get
customer attitude towards brands, frequency of purchase, competitive
analysis etc. This research is carried out by research agencies.
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Segment Profile
Targeting
Targeting is to select segment which company can best cater to
respective needs and wants of the consumers. Hilal KAKE targeted not
only any single segment but the mixture of some variables of geographic,
demographics, psychographic and behavioral segmentations.
Positioning
Hilal is dynamic changing company and always looks to opportunity to
build a strong emotional attachment with consumers through their
products. Hilal is a big company in a market and recently they are
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planning to expand their warehouse networks. They have strong brand
image in consumer minds.
Slogan: REASONS TO SMILE
Marketing Plan of Hilal Special
Kake
Product
Hilal Special KAKE is the product of baked product line of the Hilal
Confectionery. It is a Fresh, high quality, nutritious layer cakes. It is
available in many different flavors such as Chocolate, Coffee, Chocolate
Chip, and Strawberry, Blueberry, Khopra and others.
Creating Value
Hilal Special Cake is creating value for
customers by meeting their needs and
wants particularly it is beneficial for
mothers who give this cake to their kids in
lunch. Secondly, in Pakistani society we are
usually habitual of eating some baked items
at tea time. So in this way Hilal “KAKE” is
providing a core benefit of ready to eat healthy cake
in different flavors.
Product Life Cycle
PLC consists of the stages that a product goes through by the course of its
lifetime/existence in the market, in terms of its sales and profits. It has 5
stages:
Product Development:
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The point where there are no sales as the product is still in the production
and development stage and only investments costs are there.
Introduction:
When the new product is launched in the market and made available for
purchase. As it’s only the initial stage so it takes time for sales to happen
and generate profits. The costs are still high due to distribution and
promotion expenses involved.
Growth:
When the product finally gets to be accepted by the customers and
purchases begin. Here the sales go up quickly as more and more tend to
buy the product. Here competitors would also enter the market.
Maturity:
The stage where the products sales has gone slow and by that time the
product has become so strong that it gives a tough competition to the
competitors and at the end only well-established competitors remain.
Decline:
The stage where the product ceases to exists and its sales start to go
down drastically because it was able to keep up well with the competitors
and wasn’t able to come up with effective competitive strategies.
Hilal Special Kake’s PLC
Regarding PLC, the brand Hilal is in maturity stage, as it has been in the
market since a very long time and it possesses recognition in the minds of
the people, and people tend to associate themselves with Hilal.
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The product form, i.e. layered cakes is in the introductory stage, as it
hasn’t been long since they were introduced, so there is a lot room for
innovation and differentiation and much could be done so as to make it
the preferred choice of the customers.
The product category is lies in the maturity stage, as there a lot of
varieties of cakes available in the market and in different forms. Namely,
Cup cakes, Sponge cakes, Swiss rolls etc.
Growth Strategy
Market Penetration
A strategy for company growth by increasing sales of current products to
current market segments without changing the product. Hilal have used
this growth strategy to increase their sales. As far as their Kake is
concern, they introduced different flavors like Blueberry, chocolate,
khopra and many other flavors to increase their sales.
Branding Strategies
Branding decisions are one of the most crucial decisions that a marketer
has to make. People tend to associate themselves with brands. It’s like an
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asset to the company. Branding decision choices that a company might
make are:
Line Extension:
When a company already has a certain line of product and it comes with
different forms, sizes, or colors under the same product category.
Brand Extension:
When name of an existing brand is used for a new product category it is
called Brand Extension.
Multi-branding:
When the product category remains the same but there are different
brands under that category. This is done so as to cater to different subsegments under one big segment.
In case of Hilal Kake, they have followed Line Extension. They already
had a product line by the name of Hilal Kake, after which they came up
with Hilal Special Kake, thus coming up with a new product form in the
existing product line. They did so because Hilal is very well known among
the customers and accepting a product from them was easier and more
likely. And it proved fruitful for them as well as customers accepted the
product widely even though at the initial stage of the launch.
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Price
Pricing Objectives
Market for Hilal KAKE is quite price sensitive market. If price of the
product goes so low it will certainly results in higher disloyalty from
consumers. Hilal’s pricing objective is to become market leader by selling
in volume as well as providing the best quality layer cakes. They usually
follow pricing of the competitors.
Pricing Strategy
Pricing strategies keep on changing through a products life cycle. There
are certain types of pricing strategies that a company can choose from:
Market skimming: Where the product is one of its kind and is in the
introductory stage, its priced higher so as to gain as much market share
as possible. Because later on as competitors come in it lowers down its
price.
Market Penetration: The price is comparatively lower than the
competitor because the company wants to penetrate in the market and
attract more and more buyers .
Product Line pricing: Different products in a line are priced different
according to the differences in the products in that line.
Value Based Pricing: The price is set according to the value the
product is providing and the company believes that the price they are
setting justifies the value they are offering.
Superb Pricing: When the price of the product remains the same but
something more is offered.
Hilal followed value based pricing, as in Rs.10 they are giving a bigger
size, more flavors, and improved quality all in one, something which was
not done by their competitors and which proved to be an addition to
competitive advantage of Hilal.
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Place (Distribution)
Distribution refers to the steps taken to move and store goods from the
supplier stage to a customer stage in supply chain. Distribution itself is
the most significant part and driver of the overall profitability of the
company because it influences the cost of supply chain and also the
customer experience. It also creates time and place utility. They transfer
or depot all stock from their factories to distributors and then from
distributors, their goods transfer to wholesalers and then to retailers and
then directly deliver to customers. Hilal have a direct contact with
retailers like super stores, so they directly transfer their goods to super
stores as well.
As far as distribution is concern, Hilal uses intensive distribution (stocking
the product in many outlets as possible); to make sure that it is available
in every outlet. Their products are easily available allover Pakistan at
every road corner store as well as at all big stores. It is available in all
provinces in urban, suburban and rural areas but in rural areas, their
distribution is limited.
Hilal manages relationship with their suppliers, distributors and resellers
by offering incentives against which they are expected to achieve certain
sales target.
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SUPPLY CHAIN STRUCTURE OF HILAL
CONFECTIONARY
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Promotion
Promotional Goals
There are three basic goals of promotion
Awareness: Where the company is tells or informs their customers
about their offering and the benefits it brings along.
Persuade: When marketers are tend to convince their target market to
go and make the actual purchase.
Remind: When the company is only reminding its customers that we are
still there and we still exist. It’s just to tell them that we haven’t gone
anywhere.
The promotional goal was to inform customers about the launch of Hilal
Special Kake, its new and unique flavors and to inform them that they
have come up with something which is meant for the whole of the family
and everyone can equally enjoy it.
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Promotional Mix
Promotional mix consists of all the promotional tools a company might
use so to communicate their target market about their offering. They
include electronic media, print media, social media, direct marketing,
personal selling, public relations etc.
They had promoted their product through TVCs, printed ads, bill boards as
well as through social media as well. The reason being the product is
meant for the whole of the family and it was targeted for the mass
market, so it was promoted using various channels so that the message
reaches in wider terms. Hial is using social media effectively to enrich its
promotional mix.
Advertising Theme
It was a reactive strategy that was followed by Hilal in response to Peki by
Ulker.
Conclusion
The marketing plan is a cycle that begins and ends
with evaluation. The final stage in the marketing plan is to
measure the outcomes of the marketing activities against the
original objectives and targets. To bring the range of Hilal kakes to
market, Hilal Foods has put together an effective marketing mix,
but there are some shortcomings related to promotional
strategies. Hilal has the capability to response competitor’s
product launch due to high standing of market share. Growth of
Confectionary industry is a good sign for Hial Foods.
Recommendations
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? Hilal should take proactive stances rather applying reactive
strategies.
? Continuous environmental analysis must be followed.
? Hilal must clearly identify its target market to make specific
marketing programs.
? Improvement of Promotional and advertising theme is
required.
? A fresh and healthy image should be used to promote Hilal
Special Kakes in the media. Kids at school lunch time, family
parties and Tea time fun would me more attractive and
useful.
? Introducing new variant “Sugar free soft cakes” which offer
product development and market development as well,
would also help Hilal Foods to hold leading position.
? Telling customers about new uses of product such as using
with deserts and custards will increase frequency of use or
usage.
References
Books:
? Principle of marketing by Philip Kotler
? Principles of Marketing by Evans Berman
Websites
1.http://www.hilalcandy.com/
2.https://www.facebook.com/Hilal.Confectionery.Pvt.Ltd
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3.http://www.valuebasedmanagement.net/methods_bcgmatrix.
html
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doc_169257632.docx