Marketing report – One Potato Two Potato

3rd January, 2009

Letter of Acknowledgment

It has been a pleasure to be Ms. Maliha Murtuza’s students. We would like to thank her for
giving us the chance to apply the theories of Principles of Marketing in the real world.

Her lectures have been very interesting. We are extremely grateful to her and appreciate her
efforts for providing us full support, encouragement and valuable guidance.

We would also like to thank Mr. Abrar, Karachi Operations manager, of One Potato Two Potato
who provided us with the relevant information about the organization.

Sincere regards

Jawwad Akhtar 7934

Junaid Javed 8064
Faizan Baig 7941
Yasir Azeem 8229
Mohammad Hassan 7612
Faraz Ali 7614

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 Marketing report – One Potato Two Potato

Letter of Transmittal

3rd January, 2009

Ms. Maliha Murtuza

Member of Marketing Dept. and B.S.C

IoBM
Korangi Creek, Karachi-75190

Dear Ms. Maliha Murtuza

We are pleased to submit our report made on one potato two potato. We have visited the
company and observed the marketing environment. We have focused our attention on the
following variables to come to an understanding of the consumer behavior.

We appreciate you for giving us in depth knowledge and information regarding organizational
behavior.

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 Marketing report – One Potato Two Potato

TABLE OF CONTENTS

INTRODUCTION.................................................................................................................................................. 4

Positioning statement:...........................................................................................................................................5
Mission statement:................................................................................................................................................5
Goal:.......................................................................................................................................................................5
Vision:....................................................................................................................................................................5
Objective:...............................................................................................................................................................6
Policies:..................................................................................................................................................................6

ORGANIZATIONAL STRUCTURE:........................................................................................................................... 6

SWOT ANALYSIS.................................................................................................................................................. 8

SEGMENTATION TABLE....................................................................................................................................... 9

THE MARKETING ENVIRONMENT...................................................................................................................... 10

Micro-environment:.............................................................................................................................................10
Macro-environment:............................................................................................................................................11

BCG MATRIX..................................................................................................................................................... 12

MARKETING MIX – ONE POTATO TWO POTATO................................................................................................. 13

Product:................................................................................................................................................................13
Pricing:.................................................................................................................................................................13
Promotion:...........................................................................................................................................................15
Placement:...........................................................................................................................................................15

BRANDING........................................................................................................................................................ 16

PACKAGING:.........................................................................................................................................................16
LABELING:............................................................................................................................................................16
POSITIONING:......................................................................................................................................................17
DEVELOPMENT:...................................................................................................................................................18

CONCLUSION.................................................................................................................................................... 19

RECOMMENDATIONS..........................................................................................................................................19

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 Marketing report – One Potato Two Potato

Introduction

One potato two potato is a local chain of fast food working in Pakistan for past 10 years. In a
little time it has earned a good market .it is popular because of its excellent fries and burgers.
It’s been working as a take away restaurant and it hasn’t introduced dine-in facilities yet.

The corporation started out as a one small take-away restaurant in 1998 at Karachi. In the same
year it opened a new outlet at Lahore but now it has 13 take way restaurants located in
Karachi, Islamabad and Lahore. People from all ages are aware of its taste and quality.

The best part of one potato two potatoes is it has small counters placed at different shopping
malls and supermarkets which make it successful in acquiring equitable customers. Whenever
hunger for French fries is there one potato two potatoes is the first name that comes in
consumer’s mind which includes urban areas of Pakistan. Though it has a limited variety of fast
food but still it has long term plans which include dine-in facilities more out lets and a wide
variety of food.

Their outstanding brand recognition, experience management, high quality food, site
development expertise, advance operational systems ensure a position that enables them to
capitalize on urban opportunities. They plan to expand their leadership position through great
tasting food, superior service, everyday value and convenience.

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 Marketing report – One Potato Two Potato

Positioning statement:
“We fry first class only”

Mission statement:
We serve people with good quality food, fast and at low cost:-

One potato two potato’s vision is to dominate the Pakistan’s food service industry .dominance
means setting the performance standard for customer’s satisfaction and increase market share
and profitability through successfully implementing our convenience, value and executive
strategies.

Goal:
One potato two potato’s goal is to become Pakistan’s best and quick service restaurant
experience. Their core focus is on customer’s satisfaction, high quality, hygienic food, and well
trained staff.

Vision:
One potato two potato is highly successful in capturing the taste buds of Pakistani people and is
looking forward to do the same with the global market. They are also planning to open their
outlets in UAE and KSA in recent future.

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 Marketing report – One Potato Two Potato

Objective:
 To cement the company pre-eminent position in the eyes and taste buds of the
customer
 Maintaining its present customers and making new one by providing high quality and
taste
 Being the customers’ first choice.

Policies:
 Cheapest by offering lowest prices
 Easiest by providing top service in the most convenient place to shop
 Hottest by focusing on the trendiest new gimmicks
 Biggest by offering the widest variety of products

Organizational structure:

One potato two potato has horizontal hierarchal structure it has a limited number of loyal
employees called as “team members” .it has got following departments,

 Marketing department
 Human resource department
 Operational department
 Quality, service and value department

Marketing department handles that what next scheme or deals are to be used. They
plan out what promotional tools are to be used in the upcoming days.

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 Marketing report – One Potato Two Potato

Human resource department handles the customer looking after the customers’ needs.
Listening to the customer wants and demands, customer satisfaction and customer
value.

Operational department looks after the operations being done in the outlets, technical
departments, etc

Quality, service and value department design programs to constantly improve the
quality, service of the food.

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SWOT ANALYSIS

SWOT analysis is basically a study to find out a company’s strengths, weaknesses, opportunities
and threats. SWOT analysis tells the company about their strong points and gives them an
opportunity to work on their weaknesses. The SWOT analysis for ‘OPTP’ is as below:

 STRENGTHS:

The biggest strength of ‘OPTP’ is its committed workforce and emotional attachment
with the brand and company. The company has a loyal and committed workforce that’s basic
goal is to deliver a premium quality product. They don’t allow outsiders in their processing
premises as they fear leaking out their secret recipe.

 WEAKNESS:

The biggest weakness of ‘OPTP’ is their lack of vision to grow and expand. Had OPTP
wanted to grow, they would have really succeeded due to their increasing demand in Karachi,
Lahore, Islamabad and other cities of Pakistan where ‘OPTP’ is not available. Hence if ‘OPTP’
wanted to grow, it could have grown in terms of size as well as introduce different variant of
fries, burgers and hotdogs.

 OPPORTUNITIES:

Due to a considerable demand of their fries in the areas where it is not available, the
biggest opportunity is to grasp the high market share and make it proficient enough to enter
the star cell of BCG Matrix.

 THREATS:

One of the biggest threats for ‘OPTP’ is that of fake brands that are copying the product.
The brand is considered to be one of its kinds but still is unable to grasp a higher market share.

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 Marketing report – One Potato Two Potato

They fear that if any competitor will enter the market they will lose the existing market shares
too.

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 Marketing report – One Potato Two Potato

Segmentation Table
Geographic
Country Pakistan
City Karachi, Lahore and Islamabad
Density Urban
Metro Size 172.8 Million
Demographic
Age All age groups – Anyone who loves fast food.
Gender Both
Family 1 – 2, 3 – 4, 5+
Income 30,000 Above
Occupation Any
Religion Any
Race Asian
Nationality Pakistani
Psychographics
Social Class Middle, Upper Class
Life Style Achievers, Strivers
Personality Compulsive, Gregarious, Authoritarian, Ambitious
Behavioral
Occasions Regular, Special occasions
User Status Nonuser, Ex-User, Potential User, Regular User
User Rate Light user, Medium user, Heavy user
Loyalty Status None, Medium
Attitude Positive

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 Marketing report – One Potato Two Potato

The Marketing Environment

Micro-environment:

1. Suppliers

OPTP’s basic needs for their daily operations are

 Potatoes for fries

The potatoes are imported by OPTP through a well known supplier “ The potato
Factory international”.

 Bun breads for burgers

Bread and other such baked products are purchased “DAWN BREAD”.

 Vegetables for burgers

Purchased from local vendors.

 Mayonnaise, ketchup and other sauces

Purchased locally.

2. Branches

OPTP have branches in three major cites of Pakistan (Karachi, Lahore, Islamabad)
strategically located at prime spots for entertainment. Moreover they have small
vending outlets at various shopping malls and departmental stores, OPTP also
provides on the spot catering for occasions such as parties, melas etc.

3. Intermediaries

a. Physical Distribution Firms: OPTP does not cater home deliveries. All business is
done via their outlets.

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 Marketing report – One Potato Two Potato

b. Marketing Service Agencies: Most of the marketing operations are handled

internally.

4. Competitors

Competitors are,
a. KFC
b. McDonalds
c. And other major and minor fast food outlets.

5. Consumers

Consumers comprise of people of any age but majority are teenagers and
younger population.

Macro-environment:

1. Technological Forces

OPTP uses conventional cooking and frying equipment. No innovation in

this particular area as the demand at current level is sufficed.

2. Cultural Forces
The current culture of Pakistan’s metropolitans is shifting towards the
trend of eating out and the society is rapidly adjusting to this change.

3. Economic Forces

During the recently ended economical boom many of such businesses

thrived and much growth was seen, but currently prevailing situation has shown
a great decline in responses.

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BCG Matrix

On the BCG matrix the OPTP is classified as a Question mark (?) due to high market
growth and low market share.

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 Marketing report – One Potato Two Potato

Marketing Mix – One Potato Two Potato

Product:
OPTP offers basic fast food products like fries, burgers, hotdogs and sandwiches. But
there are what OPTP is known for. OPTP specializes in fries and has unique varieties ranging
from typical plain fries to much elaborate Garlic Mayo fries and specialty Bar B.Q fries.

Pricing:
OPTP prices its products at affordable levels and fall in relatively moderate priced
products. Even though they are not charging low compared to market to fall in market
penetration strategy, they call it so because they consider the foreign fast food chain as their
competitor ignoring the competition from locals.

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 Marketing report – One Potato Two Potato

Promotion:
But when we talk about OPTP, there hasn’t been any sort of advertising or promotional
campaign from the company’s side. We talked to several people and all of them were aware of
this brand, yet none could recall watching a OPTP commercial, seeing a OPTP billboard but
some remember receiving a OPTP flyer long time back.

Placement:
OPTP have branches in three major cites of Pakistan (Karachi, Lahore, Islamabad)
strategically located at prime spots for entertainment. Moreover they have small vending
outlets at various shopping malls and departmental stores, OPTP also provides on the spot
catering for occasions such as parties, melas etc.

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 Marketing report – One Potato Two Potato

BRANDING

“A name, term, sign, symbol or design, or a combination of these intended to identify

the products and services of a seller or a group of sellers and to differentiate them from those
of the competitors.”

Today, consumers view brand names as an important part of the product. Branding adds
value to a product. Branding has become really common these days. And almost everything
available is branded. Branding has many advantages; it helps consumers identify the products
from which they might be benefited. When a person buys a branded item he would be aware of
the benefits, quality and features associated with it.

PACKAGING:
“The activities of designing and producing the container or wrapper of the product”

Since OPTP is a fast food product, it is mostly consumed within an hour of its
manufacture, for this reason the OPTP does not concentrate on intensive packaging. The OPTP
packaging includes simple small paper envelope for fries and a cardboard box for burgers. All
the packaging bears the OPTP brand logo.

LABELING:
Labeling of products is very essential. Labeling performs multiple functions. It identifies
the product. It might also describe many things about the product- like who made it, where and
when it was made, its contents etc. it can also help in the products promotion.

OPTP does not concentrate on packaging therefore labeling of OPTP has been ignored until
now.

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 Marketing report – One Potato Two Potato

POSITIONING:
“Arranging for a product to occupy a clear, distinctive and desirable position relative to
competing products in the minds of the target consumers.”

Positioning the brand actually refers to successfully placing the product in the minds of
the customers. Commonly, positioning is done by aggressive advertising and promotion of the
product. Companies also use the “brand recall” strategy. In this, a company uses different ways
to remind he customers about their product over and over again. This again is done through
repetitive television commercials, billboards, posters, flyers and various marketing offers.

But when we talk about OPTP, there hasn’t been any sort of advertising or promotional
campaign from the company’s side. We talked to several people and all of them were aware of
this brand, yet none could recall watching a OPTP commercial, seeing a OPTP billboard but
some remember receiving a OPTP flyer long time back.

So, how has OPTP positioned itself in the market?

Even though OPTP does not advertise its product, it still occupies a distinct position in
the market. OPTP has focused on the fundamentals; it identified the needs of the consumers
when it was launched, and is still satisfying their wants. OPTP emerged as a product to satisfy
the potato fry craze (known as “French Fries”) of the Pakistani people. It was a very innovative
product and was not segmented. It targeted everyone- all age groups, genders, social classes
and groups.

OPTP has a unique set of loyal customers and they have been consuming it from day
one. However OPTP is struggling to capture further market.

Thus it is deduced that OPTP does need a stronger positioning strategy to grow further.

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DEVELOPMENT:
OPTP was launched as an innovator in “eating out” when it was initially launched in
1998. At that time there was no concept of “eating out” or “fast food” among the common
people. Since the product was new in the market, OPTP had a few large competitors, which
were expensive and out of reach for many. OPTP’s aim was to provide a high quality product at
an affordable, yet profitable price. Due to its fine quality and innovation, the product was very
successful. Hence began the product’s brand development. A brand is an identity, and it
strengthens as the product becomes more popular and its consumption increases. Over the
years, OPTP has never compromised on the quality of their product. They took all possible steps
to restore the taste when they received some negative customer feedback. OPTP has now been
serving us since 10 years and their top-most priority is still the provision of superior value. OPTP
has developed its brand in 10 years, but it is still struggling for its market share against a
number of world leaders in this industry.

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CONCLUSION

After completing our research we came to the conclusion that most of the people are
satisfied with the current variety, quality and hygiene. Hence OPTP has been successful in
making its place in consumers mind within a short period.

Given below are the recommendations for the organization to enhance their customer
equity and acquiring a bigger market share.

RECOMMENDATIONS

 Prices should be reduced

 More marketing should be done
 Packaging should be changed
 Burgers should be improved
 Proper dining facility should be available
 More outlets
 More flavors of fries should be introduced
 Home delivery system
 Introduce more items

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