CONTENT

Introduction Limitation Literature review Research methodology Designing questionnaire Analysis current situation Target audience Marketing goals and plans Corporate analysis Advertising goals and plans The launch rationale and the launch plan Advertising budget Consumer sampling plan Develop and execute creative strategy Develop and execute media strategy Media schedule Media plan for the year Conclusion and recommendation Reference

INTRODUCTION
HISTORICAL BACKGROUND
Continental Biscuits Ltd. (CBL) is one of the largest biscuit manufacturing companies in Pakistan. Since 1986, CBL has been providing the finest biscuits to Pakistan consumers through a joint venture with the renowned French biscuits brand, LU. Besides delivering the finest quality biscuits, CBL has always been a responsible corporate citizen and involved in number of charitable initiatives.

Initially in Pakistan, biscuit baking was more conventional where the baker sifted dough with the basic ingredients and baked small portions of batter in an old-fashioned oven. Through the years, it has progressed towards modern automatic plants, efficient assembly lines and high quality attractive packaging. Continental Biscuits Limited (CBL) has been a significant part of this modernizing and upgrading process. With the latest in superior technology, an innovative range of quality products and an excellent distribution network, CBL reigns supreme in the biscuit industry.

At the heart of CBL's corporate philosophy is innovation of products, strategies and packaging. This passion with innovation has led CBL to introduce the finest brands from the Danone portfolio in Pakistan.

Pakistan's premium range of sandwich biscuits is known for its soft, creamy fillings..

One of the first brands to be launched by CBL, TUC stands as the number one cracker. Loved for its light and crispy texture.

The unique sweet and salty cracker.

Wah! Has an extremely unique and distinctive butter flavor which combined with its sugar glazing makes it irresistible to adults and children.

The only brown sugar biscuit in Pakistan, loved for its sweet taste and crunchy texture.

A wonderful aroma, unique design and great taste is what sets this brand apart from the rest.

The tasty milk biscuit with vitamins A, B and D, that promises health and strength for children.

An old favorite in a modern form Zeera Plus.

Peanut Plus is a peanut flavored biscuit with real peanuts visible on its surface.

The only hi-energy, power packed biscuit that brings together the goodness of milk and glucose along with the strength of calcium and wheat

OBJECTIVE
1. To Determine the impact of Brand Name on FMCG Product (Biscuit); 2. To study the effect of Brand Extension on FMCG product Sales especially biscuit; 3. To study the effect of Brand Extension on consumer buying behavior of FMCG Products;

4. To find the consumption pattern of the consumer after Brand Extension on a FMCG Product; 5. To determine the effect of advertisement on Brand Extension and consumer attention towards specific variety; 6. To study the effect of brand extension on the mother brand; 7. To identify the effects on Brand Extension on it Variety; 8. To study the Brand Extension on Brand Name of the same FMCG Product;

LIMITATIONS
1. Due to allocated time of a thesis researcher have to work within three months time. 2. Specific Area (North Nazmiabad) 3. Research outcomes will only indicate the effect of brand extensions in Rural Area of Pakistan

LITERATURE REVIEW
BRAND AND BRAND EXTENSION WHAT IS A BRAND?

Kotler and Armstrong, 2007; Jalees, 2008) has defined brand as a name, term, sign, symbol, design or a combination of these attributes used by the firms for identifying their products and to differentiate the competitors brands. Another important aspect of brand is that it helps consumers in identifying the manufacturers. According to (American Marketing Association, 2007; Jalees, 2008) a brand is: "A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition." (Kotler and Keller, 2006; Jalees, 2008) define a brand as a product or service that adds dimensions that differentiate it in some way from other products and services designed to satisfy the same need. The brand is seen in this context as an identifier.

(Ambler and Styles, 1996; Sayama, 2006) argue that a brand is more than just a product, and that it is a combination of all elements of the marketing mix. In line with (Amblers, 1992; Sayama, 2006) holistic view that defines a brand as the promise of the bundles of attributes that someone buys and that provides satisfaction; all elements of the brand

are taken into consideration; and these include the marketing mix and all the brands product lines.

(Kotler and Keller, 2006; Sayama, 2006) define a brand as a product or service that adds dimensions that differentiate it in some way from other products and services designed to satisfy the same need. The brand is seen in this context as an identifier. A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors (Bennett, 1995; Rubini, 2010).

COMPONENTS OF A BRAND Essentially a brand can convey up to six levels of meaning as per the study of The Indian Institute of Planning and Management, New Delhi (Leverage of Mother Brand and Brand Extension, 1995)

ATTRIBUTES: A brand first brings to mind certain attributes. Kelloggs suggest high quality, nutritional value, value for money etc. BENEFITS: A brand is more than a set of attributes since customers are not buying attributes. They are buying benefits. Attributes need to be translated into functional and / or emotional attributes. The attributes of nutritional value for Kelloggs translate into the functional benefit of a healthy meal. VALUES: The brand also says something about the producers values. Kelloggs stands for best quality concern for customers. CULTURE: The brand may represent a certain culture. Kelloggs stand for American culture, which is synonymous with organized, efficient and Personality: The brand can also project a certain culture Kelloggs Chocos brand relates to kids and suggests a fun loving personality.

User: The brand suggests the kind of consumer who uses the product Kelloggs is targeted towards growing children and young adults and essentially towards woman who buy the product.

BRAND NAME:

The very first important feature for a brand is the brand name. (Kotler, 2009; Rubini, 2010) detected that there are six main criteria to follow for choosing a brand name; a brand name has to be:

Memorable: the name has to be short, easy to pronounce and spell. Think Lotto, for example, that is much more memorable an easy pronounce than Booji, or Feiyue. The name of the brand has to be easy to recognized and recall in any situation and language. Meaningful: Nike in Greek means victory, a very strong and meaningful name for a leader company in sport industry (Parker Jones, 2006; Rubini, 2010). Likeable: it relates to the aesthetics of the name, how it looks and how it sounds. Transferable: it refers to the peculiarity of the name to well represent new products or to introduce them to new markets. Puma, for example, is a name so universal and catchy that can serve for multipurpose branding. Adaptable: whereas Nike has created a brand-in-brand by to

introducing the line AJ (Air Jordan), Adidas subdivided its brand in three product-lines, leaving the same brand name for all of them, but adding

the product-line name as a suffix. The original logo was then used only for the product-line Adidas Originals, but for the other two, Adidas Performance and Adidas Style, they have created new logos exploiting the concept of the three stripes, Adidas characteristic feature. Moreover, products from diverse product-lines are wrapped in different layout colors packaging. BRAND LOGO: It was 1971 when for $35 Carolyn Davidson designed one of the most successful logos of all time for the once-so-called Blue Ribbon Sports Inc. (Logo Blog 2010). The logo was inspired by the wings of the statue of the Nike, the Greek Goddess of Victory. Then in 1995 the logo was registered as trademark and it has contributed to worldwide success of the company.

As the brand name, the brand logo plays a crucial role in a company success as it is the visual representation of the corporate identity (De Pelsmacker et al.. 2001; Rubini, 2010). A logo must be distinctive and unique. (Williams, 2005; Rubini, 2010)tells us that there are several rules to

follow during the design of a logo; five are the most important:

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Company reflection: a logo should reflect the company business, not be inspired or even similar to the one of its competitors. Simplicity: an efficient logo is simple; it is important to avoid logos with many details. Black and white: a company logo should work also in black and white and it has to be recognizable because the shape and not the colors. A logo that cannot be distinguished whereas painted with different tones is a failure. Resizing: a logo is efficient when it is understandable when resized or inverted. A company should be able to resize its logo, for example in order to print it on business cards, and still the logo must be clear. Also, a logo must be recognizable if its shape is mirrored. Balance: with balance is meant the process to design a logo

where everything works in harmony and there is not a single aspect of the logo (i.e. border line, font size, colors, and so on) that suffocates the others

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RESEARCH METHODOLOGY
PROBLEM: Any inconsistent attribute information about a new brand extension results in a modification of the corresponding belief about the corporate brand. With expansion strategies there is often a risk for negative outcome and brand extension is not an exception. The greatest risk with brand extension is cannibalism of sales and deterioration of the corporate brand. Further they mean that it will have greater probability to increase these risks when extensions are inconsistent with the brand 12

image or that fail with regard to consumer expectations. After the Brand Extension customer forget the mother brand and even in some cases they dont recognize the brand name. There are some problems in taste and packaging of some newly extended brands. LU in Pakistan has a good market value but still people dont know about its new products and their taste.

METHODOLOGY: The Purpose of research is Descriptive in nature; the type of investigation is Causal. The Researcher Interference is moderate for this study. The study setting is NonContrived and the researcher performed Field experiment. The Unit of Analysis is Group. For this research Time Horizon is Cross-Sectional. METHODOLOGY: Population: All consumers of LU Continental Biscuits especially Bekri biscuits for last two years or more having age between 20 to 40 years. Sampling: Simple Random Sampling is used to get responses from the LU Continental Biscuits especially consumers of Bekri Biscuits.

QUESTIONNAIRE
Thank you for your cooperation to complete the questionnaire. The information you provide me will be confidential and will not be used for any other purpose. Instructions: Please read each item and CIRCLE the number that most accurately reflects your opinion Gender Age 13

 Male Female 21 30 31 40 Qualification Graduation MS/Phil Income 10,000 20,000

41 50 50 and Above

Post Graduation Doctoral

21,000 30,000

31,000 40,000 41,000 & Above Area of residence? DHA P.E.C.H.S Clifton Saddar Gulshan-e-Iqbal

North Nazimabad Profession Marketing Engineering Others Banking Doctor Teacher

Brand knowledge: 1- Are you familiar with Brand Name LU (Bakery) Biscuits? Yes / No Yes /

2. Did you know what are the products of the LU (Bakery) Biscuits taste like? No

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3. Can you recognize LU(Bakery) Biscuits brand among other competitive brands? Yes / No 4. Is corporate LU brand is appealing to you? Yes / No Yes /

5. Is the products of the company with brand extension do satisfy your need? No

6. Is brand extension like any other extension in the industry satisfy your need? Yes / No Brand Extension effects: (5-Strongly agreed Disagreed 1-Strongly Disagreed) 1- Do you agree that extensions of LU Bakery have no difference with the existing one? 5 4 3 2 1 2- Did you agree that the Extension of Bakery Biscuits sabotage the Lu Bakery Biscuits? 5 4 3 2 1 3- Are you agree that Extension of Brand make our choice easy? 5 4 3 2 1 4- Agreed 3-Netiher agreed nor disagreed 2-

ANALYSING CURRENT SITUATION

THE MARKET & INDUSTRY
Bakeri biscuits exist in one of the largest segment of the biscuit category in Pakistan. It is what is known as a soft egg biscuit. The only viable contender in this market segment is 15

EBMs Sooper and perhaps to a lesser degree the rusks available at local bakeries. Therefore with only two major player in this particular segment, the court is wide open for one to take over the market share of the other and even to new competitors to come in or existing companies to establish the base for other soft/bakeri like biscuits. The biscuit industry is characterized by a 8% annual growth rate. The barriers to entry and exit are limited, and while peoples preference for packaged food increasing growth and profitability potential is seemingly high.

THE COMPETITOR(S)
As mentioned previously the only viable competitor(s) in this particular segment are sooper and the open rusks available at bakeries. Sooper exists as English Biscuit Manufacturers star product currently and accounts for about 60% of their total revenue. EBM had the distinct advantage of creating and moving fast into the newly created soft biscuit market with the launch of Sooper. Apart from that an intensive and high impact promotional campaign managed to capture Top of the Mind recall from customers and subsequently a large portion of the market share and this was all before bakeri was launched in 2005. Asides from Sooper other biscuits available in the market do prove to be an indirect form of competition because they do not belong to the soft biscuit category, but are nevertheless biscuits.

CONSUMER PREFERENCE : BAKERI VS SOOPER

Since both brands are relatively homogenous and undifferentiated their exits only slight variances in consumer preferences on the basis of product attributes. A sample of 100 people was taken with 50 males and 50 females and the following results were obtained.

BASE :100 PPL ATTRIBUTES

BAKERI

SOOPER

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1 2 3 4 5 6 7 8 9
10

Thickness Color Size Aroma Sweetness Freshness Crispness Flavor Taste

After taste

51% 54% 56% 49% 40% 55% 55% 50% 48%

45%

49% 46% 44% 51% 60% 45% 45% 50% 52%

55%

Therefore on the basis of this, Bakeris strengths and weaknesses relative to sooper were identified as:

STRENGTHS Color Crispness Flavor Freshness

WEAKNESSES Aroma Sweetness Taste After-taste

A similar gender based analysis was also conducted with the following results:

Base: 100 50

Gender Male

Bakeri 57%

Sooper 43%

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50

Female

49%

51%

STRATEGIC ISSUES AND CAMPAIGN OBJECTIVE

While during its initial launch bakeri was able to generate sufficient levels of demand and had top of the mind recall (thanks to the celebrity endorsed Ali Zafar and Eman Ali ad), its sales have gradually declined over the period as have its promotional campaigns. Sooper is gaining market share from all biscuit categories and currently its ads featuring Fawad Ahmed has a higher mind recall among consumers than Bakeris last ad which was cricket inspired and had stars such as Humayun Saeed, Aminah Haq and Adnan Siddiqi. Therefore the campaign objective is to re-launch Bakeri with a totally new promotional concept and targeting a newer and much wider audience. The ultimate objective is to bring the ex-users and new user on board and establish the base for the launch of other, soft/bakeri like biscuits. The campaign development objective is to make a product better than or similar to sooper with the final product beating sooper an all attributes at 95% confidence interval. Product differentiation will be maintained.

TARGET AUDIENCE
The old ad campaign which aired two ads basically depicted bakeri as an irresistible combination of natural goodness and freshness it was presented creatively and forcefully in the first ad, but failed to make a desired impact in the second. Bakeri made the mistake of narrowly defining its target market in the ad. The promotional campaign targeted young

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families, couples, and while that latently does permeate to young adults, it needs to be bought forth in the campaign, the bakeri brand is synonymous with Youth Independence Upbeat attitude Natural - no pretences The few promotional campaign will target primarily Young adults Families Adults Working Individuals While the secondary targets would be Older people Children Again it must be mentioned that Bakeri will cater primarily to the urban market with focus being on middle, upper middle and upper classes of the country

MARKETING GOALS AND PLANS

Successful adverting begins with a set of clear objectives which are statements of desired future conditions. Markting objectives define targets for marketing performance usually in terms of sales coupled with a financial measure such as profitability. The marketing

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objectives are supported by a set of lower level objectives each representing a category in the marketing mix.

THE MARKETING OBJECTIVE

The marketing objective aims to increase sales revenue by 5% from the current Rs.895m to Rs.940m by December 2007. this would be done by setting and meeting relevant targets in the marketing mix.

THE MARKETING STRATEGY

Bakeris marketing strategy would position the product on the basis of two approaches Positioning by product difference Positioning by users and usage Positioning by Product Difference The product is different from its main competitor sooper on the basis of its natural ingredients. Ads and promotional campaigns will highlight the natural goodness of the product ( because it is made with real milk wheat ans eggs) and also mentin that it is just as good as the egg biscuits available at the local bakeries- even better because it is much more hygienically prepared and packed and is therefore abetter option. Positioning by Users and Usage The new campaign wants to position the product as an integral part of everyday life-of getting together,socializing, having fun entertaining etc.bakeri is a biscuit that can be enjoyed by all people of all ages and is a part of the good times you have in your life.

THE ACTION PLAN

The marketing objectives and strategies will be achieved through a series of marketing mix decisions. Prices will be maintained at Rs.20 for the family pack, Rs. 10 for the half pack and Rs.3 for the ticky pack as these prices are reflective of production costs with a

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minimal profit margin. Furthermore price promotion packs will be introduced in the last quarter of 2007 with prices at Rs.7, Rs.8 and Rs.2 for the family pack, half pack and ticky pack respectively. Maximum availability of the product will be ensured in major urban centres i.e Karachi, Hyderabad, Lahore and Islamabad.. this would be done by roping in more distributors i.e increasing their numbers from 11 to 16. City Karachi Hyderabad Lahore islamabad Total Distributors 8 2 3 3 16

Wholesalers and retailers would be encouraged to stock and promote products n exchange for discount allowances, display allowances or additional merchandise.

CORPORATE ANALYSIS
While most companies struggle to survive during the ongoing recession, there are some that have prospered despite adverse economic conditions. Continental Biscuits is one such business which has continued on its growth trajectory even over the past couple of years which have proven to be a test for many. We do ultra well during recessionary periods because of the simple fact that we deliver value for money, asserts the companys Director Commercial Hamid Ali Khan, in an exclusive interview with BR Research. When a tricky pack of biscuits costs less and is 21

more nutritious than a naan, what else would you expect? he questions rhetorically. Besides, Khan points out, We have a population of 180 million people and growing; they have to eat. Continental Biscuits and English Biscuits Manufacturers are the two largest biscuit manufacturers in the country. According to industry sources, together, the two companies make up almost four-fifths of the sales of the organised sector in this field. However, a majority of the overall demand for biscuits is still fulfilled by smaller players and bakeries. Hamid Ali Khan estimates that the organised businesses are only about 30 percent of the entire market for biscuits in Pakistan; the rest is all being catered by bakeries and smaller manufacturers. Talking Numbers But Khan points out that consumption patterns are shifting in favour of packaged goods. Consumers perceive that everything packaged is pure. They identify packaged goods with health, purity and freshness, he explains. Rising health consciousness has helped the company grow leaps and bounds in recent times with a thrust of sales from rural areas. About three or four years back, only about 30 percent of our sales were coming from rural areas while the rest came from urban areas, says Khan adding that This proportion is shifting quickly and in the future sales will skew to a point where a majority of the sales come from rural areas. Due to this phenomenon the company has witnessed sales growth of about 18 percent per year and currently has a sales turnover of about Rs8 billion while its sales volume stands around 49,000 tons. The companys plant is situated in Sukkur and employs about 400 workers there. Khan explains that This location is equidistant from markets in Sindh and Punjab, facilitating timely delivery of products to consumers. The industrys average expenditure on advertising is about 12 percent of turnover, which is also what we follow, he sums up. Passion For Biscuits Hamid Ali Khan dispels the notion that the supply chain network of a company is the most important aspect for maintaining its market share. While he acknowledges the need for an

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effective supply infrastructure as well as distribution system, Khan insists that the key to maintaining the edge over competition lies in keeping up quality standards. We were the first to use coated film, biaxial-orientated film. We go into transmission ratios of water and oxygen, highlights Khan stressing that the company has set high standards of quality for itself, which are only imitated by the larger competitors while smaller players often resort to the use of sub-standard ingredients and packaging. Food is a living, breathing organism and manufacturers must have intimate knowledge of the technical dynamics involved. You have to know heat application, the behaviour of packaging and you have to buy the best. Laying stress on the companys quality standards, he highlights, We submerge the packaged biscuits under water as one way of testing the durability and effectiveness of the packaging. Going Global Continental Biscuits was a joint venture between Hasan Ali Khan and French-based Generale Biscuit; however the latters 49.5 percent stake in the company was eventually sold to Kraft Foods. While the company has shown impressive growth in local markets since its inception, exports have also surged during the past five years. Currently, Continental Biscuits is the countrys largest exporter of biscuits, selling its products in more than 20 countries in the Middle East and Africa. Khan asserts that the company has gained invaluable experience and knowledge from these markets because there they compete with all the international brands. But the most lucrative growth prospects in international markets are in Afghanistan, according to Khan. He adds that the western neighbour also presents an avenue for exports to Central Asian republics a market that Continental Biscuits has leaped into in the hopes of mushrooming revenues. Going Public And Growing The family of Hasan Ali Khan, the founder of the company, have remained the majority stakeholders in the company since its creation. Most family-owned companies shy away

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from listing at stock exchanges due to higher disclosure requirements, stringent conditions for seeking liabilities and loss of management control. However Hamid Ali Khan asserts There can be no better force for demanding efficiency than shareholders. He reveals that Continental Biscuits plans to list at the local stock exchanges within the next two years. Kraft Foods, also owns 40 percent of EBM, but Hamid Ali Khan is adamant that there is no way that Continental Biscuits would merge with EBM. While he concedes that the phenomenal growth in the industry has allowed all players in the industry to grow; Khan insists that competition between large manufacturers is tough. There is very much a fight, he says, adding that Everyone knows everyone elses numbers and there is competition in the trade and people switching between companies. Beyond Profits Continental Biscuits was the first company to employ females in Sukkur and is the largest employer of women in Sukkur. The company is also on the board of IBA-Sukkur and maintains seats there for female students. In terms of sustainable projects we have set up the first kidney dialysis centre in Upper Sindh so that people do not have to travel all the way to Karachi for treatment. We have set up schools in the Nara deserts as well as set up tube wells there, narrated Khan. He also revealed that the company contributed $400,000 for flood relief and fed about 5000 people a day in the aftermath of last years floods. An avid conservationist himself, Hamid Ali Khan has worked on out-of-the-box solutions for limiting the wastage of water and energy. He proudly explains how his factory utilises heat from electricity generators to produce 600 tons of air conditioning. Khan is currently working on ways to produce electricity from renewable sources such as wind and solar power, through low-cost solutions. The Bottom Line Hamid Ali Khan contends that his company has not raised prices by more than 5 percent over the past three years, despite spiralling input costs. Four years back, I was buying flour at about Rs11 per kilogram which is now at Rs31 per kilogram. Sugar prices have also gone up by about as much over the same period.

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While he is irked by increases in the prices of sugar and wheat flour, Hamid Ali Khan says that the biggest irritant has been the rocketing price of fat. Fat used to cost about Rs50 per kilogram but now its at Rs140 per kilogram, he says. One of the ways that local manufacturers have coped is by reducing the proportion of fat in their products. Pakistani biscuits have become the healthiest biscuits in the world because they have virtually no fat! quipped Khan.

ADVERTISING GOALS AND PLANS

Advertising plan presents an analysis of the advertising situation along with a reiteration of the previously established marketing objective and marketing strategy. It is an integral component of overall marketing plan. It estimates the objectives and strategy specific to advertising, along with details about message, media plans, sales promotion, advertising budget

THE ADVERTSING OBJECTIVE

To bring ex-users and new users on board Establish the base for the launch of other soft/bakery like biscuits To redefine the target audiernce To develop new associations with the product To capture maximum share of mind and recall from the target customers

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THE LAUNCH RATIONALE AND THE LAUNCH PLAN

Bakery biscuits are the largest segment in the biscuit category of Pakistan. There is a large variety of bakery biscuits but one characteristic that is common to all is that they are Soft. Sooper is similar to the Egg biscuit & Cake Rusk available at most bakeries. CBL needs to cash in on this segment because of lack of competion. It is in an extremely good position to become the market leader. Sooper has created this new category and owns it. Sooper has the highest TOM( top of mind recall)

THE LAUNCH PLAN

Nov 6, 06 Nov 14, 06 Nov 14, 06 Nov 17-26, 06 Nov 30, 06 Nov 30, 06 Dec 15, 06 Production begins Primary sales to top 16 distributors Secondary sales Launch meetings with DSRs POS display campaign Media Break Consumer Sampling 26

THE ADVERTISING BUDGET

COMPUTATION FOR ADVERTISING BUDGET
The budget is set by the percentage of sales method. CBL sets its advertising budget at 10% of forecasted sales. Current sales revenue Forecasted sales revenue 10% of forecasted sales 895238100 940000000 94000000 (ADV Budget)

ALLOCATION OF ADVERTISING BUDGET

Initial promotion(nov 2006) Jan-june (2007) July- december(2007) Total

32,000,000 20,000,000 42,000,000 94,000,000

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50000000 40000000 30000000 20000000 10000000 0 Initial promotion(nov 2006) Jan-june (2007) July- december(2007)

BUDGET FOR RELAUNCH/INITIAL PROMOTION

Activity ATL Creative/Production TV airtime Radio print media Outdoor Hoarding Total - ATL BTL Caps for DSRs (1300 @ Rs20) 20 1,300 T-Shirts for DSRs (1300 @ Rs45) 45 1,300 Sales Cards 5 1,000 Receipt pads 3 40,000 Paper Bags 5 2,000 Uniform : Apron & B. Cap 300 80 Gifts: Wrist Watches 150 200 Calculators + Diary 150 175 26,250 30,000 24,000 10,000 120,000 5,000 58,500 Cost / unit Quantity Cost 2,000,000 12,385,250 5,297,000 8,713,000 1,000,000 29,395,250

26,000

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Refill Pen 5 250 POS: Posters 3 100,000 Pull stickers 1 30,000 Banners 150 2,000 Shelf Strips 2 125,000 Consumer Sampling Total BTL Total Adv Budget

1,250

300,000 30,000 300,000 250,000 870,000 2,051,000 31,446,250

CONSUMER SAMPLING PLAN

The sampling plan for Karachi has been finalized and will commence from 15th December 2006. The objective of this campaign is to: Generate trial Reach maximum number of potential customers Capture share of heart and share of mind To carry out sampling activity in Karachi we hired a BTL agency named Blue Communications. A total of 290,000 samples will be distributed using 12 different channels. There will be about 80 samplers involved each of which will be wearing a uniform. A ticky pack consisting of 2 biscuits will be distributed.

SAMPLE PLAN
Region No of samples Karachi 219200 No of teams 4 teams of 16 individuals each Areas targeted Offices, bus stops, mosques, markets, Sunday bazaars, parks, colleges, signals, food streets, beaches, restaurants

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STRATEGY FOR VENUE SELECTION

Following broad parameters were used to select the site for sampling, To cover all income groups of Karachi. To cover Karachi Geographically. To have quantity as well as quality of Contact.

HITS PER CHANNEL IN KARACHI

Channels No. of Days Total Hits Hits Per Day Time Per Day Hits Per Minute

Mosques Sunday Bazars Markets Restaurants Beaches Food streets Bus Stops Colleges Parks Institutions

2 2 12 2 2 2 12 12 2 12

12000 10000 84000 6000 4000 4000 30000 8400 8000 9600

6000 5000 7000 3000 2000 2000 2500 700 4000 800

80 180 270 120 90 90 120 60 300 180

75 28 26 25 22 22 21 12 13 5

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Signals Offices

12 12

28800 14400

2400 1200

240 90

10 13

VENUES TARGETED (KARACHI)

Mosques: Madni Masjid Azizabad Farooq azam Masjid North Nazimabad. Sunday Bazars Gulshan. Defense. Shopping Centres/Markets Water Pump. Clifton Markets. Tibet Center. Sadar. Karimabad. Dhoraji. Aisha Manzil. Hasan Square. Nursery. Bohri Bazar. Faizane Madina Banuria Town Baitul Mukaram Sultan Masjid

Car Dealers. Gulf. Jama Cloth. Cantt. Zamzama. Electronic Market. Hyderi Market. Tariq Road. KDA.

Restaurants Javed Nehari. Noorani. Lasani. Kbyees.

Usmania. Boondo Khan Sindhi Muslim. Student Biryania

Food Streets Boat Basin.

Khadda Market.

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Five Star.

Platinum. St, Patriks. St. Joseph. Premier Nipa. Sir Syed. Saudia Girls. SM Law College.

Colleges Khatoon-e-Pakistan. PECHS Girls College. APWA-Nazimabad. SMC. Dow Medical College. Abdullah College.

Bus Stops Chamber of Commerce. Light House. Abdullah Haroon Road. Boltan Market. Shaheen Complex. Civic Centre. Shahrae Faisal. Khalid Bin Waleed Nagan Chorangi. Jail Chorangi.

Malir Halt. Nettijetti Bridge. Parks Alladin. Sindbad. Hill Park. Safari Park. Nisar Shaheed. Fun Land. Quaid-e-Azam. Indus Valley. BCS Fast. Baharia Management School. Baharia College. Water Pump. Hydri Qaumabad. Sindhi Muslim. Nursery. 32

Institutions IBA. CBM. SZABIST. PAF.

Signals Defence More. Plaza. Board Office. Jail Road. Garibabad.

Five Star. Nipa. Landhi. Gulshan Chorangi.

Azizabad. Tipu Sultan. Karimabad.

Offices Tower to Stock Exchange. Stock Exchange to Police head Quarter. Habib Bank Plaza. PIDC. Jung Press. Sidco center.

Awami Markarz. Shahrae Faisal(Citi Bank) Sindh Secretariat. Civic Center. Falak naz Center- Air port. Statelife Zainab.

CONSUMER SAMPLING COST BREAK-UP

Cost of Samples (219,200 x 2) Agency Fee Total Cost of Samples 438,400 431,600 870,000

ON GROUND SUPPORT
Posters, banners, and shelf strips, Free sampling for trade Free sampling for consumers

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DEVELOP AND EXECUTE CREATIVE STRATEGY

THE NEW AD CONCEPT
Bakeri entered the new market segment with a fresh ad concept. Owing its initial success to the creatively thought out at starring bankable stars like Ali Zafar and Eman Ali, Bakeri had top of the mind recall amongst its consumers. The concept catered to the target segment innate desire to see a romantic happy buoyant couple. The humorous element of how bakeri was a test of love was also a plus point. However when the initial hype receded, so did the sales level. Another ad with the same theme i.e. showing a happy couple was then launched earlier this year. This ad too starred celebrities(Aminah Haq, Humayun Saeed, and Adnan Siddiqi). It showed how the couple were enjoying their time together watching the cricket match and how bakeri added to their joy. However, this ad failed to generate the desired response. The new task at hand for people at bakeri is to obtain a greater share of heart and mind and put a stop to soopers expanding market. The new revised ad concept does away with casting celebrities and showing happily married couples and takes on more generalized and therefore universally appealing approach. The new ad concept basically aims to get the target audience to forge associations with the product on a more personal level. The new concept has one theme; how bakeri is a source of joy, happiness, entertainment, bonding, and love for its consumers in their daily lives. The new tag line is sweet moments in a packet One central theme; 4 ads

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Ad 1; group of young adults/teenagers hanging out, having fun having bakeri. Snacking on it, fighting over it, having fun with it by eating it in different ways. Ad 2; Bakeri at home. How it is served to guests, how families use it during tea, how it is a snack. Family sitting together enjoying Bakeri. Ad 3; How bakeri is convenient and healthy (because of its natural ingredients). Usually people in the office do not have time to have a proper lunch. One person opens a Bakeri packet, its shared promotes comadiere Ad 4; Collage of visuals from 3 ads above.

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DEVELOP AND EXECUTE MEDIA STRATEGY

Media strategy aims to describe the course of action you plan to follow to achieve your media objective. For Bakeri it is imperative to develop a new media strategy that is effective enough to target a higher share of heart and mind as its competitor Sooper. The media strategy involves 3 steps: Determining geographic scope Scheduling the message Selecting the media

DETERMINING THE GEOGRAPHIC SCOPE

Since Bakeri is a product that targets primarily the urban audience, advertising will be undertaken in cities namely Karachi, Hyderabad, Islamabad/Rawalpindi and Lahore.

SCHEDULING THE MESSAGE

The new ad concept will be first aired during the period of November. 4 advertisements based on one theme will be aired/printed periodically. The flighting method of continuity scheduling will be used. Flighting involves an intermittent frequency schedule when your advertising runs and gaps when it doesnt. With Bakeri, the flighting method would serve two purposes. Scheduling the message during peak buying periods which in this case would be Eid and during winter when tea consumption increases and biscuits become complementary goods to tea. This is important because biscuits are generally purchased all year round and also because Bakeri has a very close competition in Sooper and must thus defined its existing market share and aim to capture the market from its competitor.

SELECTING THE MESSAGE

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For Bakeri, all major media forms will be utilized. Television Radio Print Outdoor Hoarding

NOVEMBRE MEDIA SCHEDULE

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Advertising will be carried out as specified above for the first 15 days of the month. The Print Media Dawn Images (Sunday) The News Instep (Sunday) Jang Total Television (Prime Time Slot (Per hour) Frequency 4 4 3 ARY (8 pm 12 am) COST ADV/DAY last 15 days frequency will be reduced by half. First 15 days = 301,000 x 15 = 4,515,000 Last 15 days = 2,257,500 6,772,500 = cost of prime time for a month Duration 4 = 15 sec 4 = 30 sec 4 = 15 sec 4 = 30 sec 2 = 15 sec 6 = 30 sec Location 2nd page Front page 2nd page Front page Front page Size (27X4) page (27X4) page (27X4) page (27X4) page (27X4) page Frequency 1 day/week for 2 weeks For 4 weeks 1 day/week for 2 weeks For 4 weeks 1 day/week for 4 weeks Cost 259,000 459,000 326,500 526,500 900,000 Total cost 513,000 1,83,5000 653,000 2,105,000 3,600,000 8705000

Cost/Ad
17500 x 4 35000 x 4 13125 x 4 26250 x 4 8750 x 2 17500 x 6

Total Cost 21000 157500 122500 301000

PTV (8 PM 10 PM) GEO (8 pm 10 pm)

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Regular Transmission PTV (4 PM to 7 PM) GEO (8 AM to 6 PM) Hum TV (8 PM to 11 PM) Indus TV (6 PM to 10 PM) The Musik (5 PM to 8 PM) Cost adv/day

Frequency 2 2 2 1 2

Duration 15 seconds 15 seconds 15 seconds 30 seconds 15 seconds

Cost/Ad
13,750 8,750 5,000 10,000 4,500

Total cost 82,500 70,000 30,000 40,000 27,000 243,500

First 15 days = 243,000 x 15 = 3,742,500 Last 15 days = 124,750 x 15 = 1,871,250 5,613,750 = cost of regular transmission for the month

TV expense for the whole month = 12,385,250

RADIO 39

First two weeks :heavy rotation on FM 89, 96, 100 Last two weeks: heavy rotation on FM 91, 106.2, 107 First 15 days Duration Frequency

Cost

Total Cost 33,700 7,500

FM 89 (Ad clip) (6Pm to 12 15 sec Am) FM 96 (Ad clip) (11 am to 2 pm)

Weekly show (sponsor for a month) FM 100 (Adv clip) (whole day) 15 sec

2/hr 1/hr

3225 2500

15 seconds 15 sec

375,000 45,000 20,000 105200

Half hour time checks (6 PM to 11 PM)

First 15 days Last 15 days frequency reduced by half Weekday show sponsor

105200 x 15 = 1,578,000 789,000 375,000 2,472,000

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Last 15 days

Duration

Frequency

Cost

Total Cost 15,000 20,000

FM 91 (Ad clip) (8Am to 2 Pm) FM 106.2 (Ad clip) (3 Pm to 8 Pm)

FM 107 (Ad clip) (6 Pm to 10 Pm)

15 sec 15 sec

1/hr 1/hr

2500 3500

15 sec

2/hr

2500

10,000 45,000

Last 15 days

Duration

Frequency

Cost

Total Cost 20,000 425,000

FM 91 (Ad clip) (6Pm to 10 15 sec Am) One day transmission sponsor FM 106.2 (Ad clip) (8 Pm to 10 Pm)
FM 107 (Ad clip) (8 Pm to 10 Pm) 15 sec

2/hr

2500

15 sec

2/hr

3500

42,000

2/hr

2500

10,000 25,000 97,000

Hour time checks (3 PM to 7 PM)

First 15 days Last 15 days Whole day sponsorship

45,000 x 15 = 675,000 97,000 x 15 = 1,445,000 425,000 2,555,000

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Radio expense for the whole month = 5,297,000 YEARLY MEDIA PLAN

MEDIA PLAN FOR THE YEAR

Jan Print Media (1/4th page) Daily dawn images(froont) The news instep (front) daily jang Television Ptv Geo TV HUM TV ARY] Indus TV The Musik Radio 15 secs Ad clips FM 89 FM 91 FM 96 FM 100 FM 106.2 FM 107 whole day transaction sponsor FM 96 FM 100 FM 107 Time checks FM 91 FM 96 FM 100 FM 107 58 45 40 55 45 56 55 40 42 40 35 25 25 30 35 25 _ 10 _ 15 10 15 15 15 _ 10 10 15 _ 25 20 _ 25 20 20 25 25 30 30 35 45 48 40 50 50 56 55 50 90 40 30 35 48 55 48 20 25 30 25 40 42 15 30 25 30 35 30 20 15 20 15 20 15 10 10 15 8 8 _ _ 5 5 _ 5 _ _ _ 3 5 _ _ 5 5 _ 5 _ _ _ 5 _ 10 15 _ 25 30 20 20 20 45 45 40 35 40 35 60 20 30 30 45 40 25 10 9 10 20 10 25 15 15 10 15 15 30 10 10 10 10 15 _ 5 3 10 3 4 _ 3 3 _ 10 9 5 _ _ _ 2 2 _ _ _ _ _ _ _ _ _ 5 12 5 _ _ 4 3 _ 3 _ 15 10 10 15 20 20 20 12 10 15 15 30 25 15 12 25 15 20 4 20 4 18 20 4 20 4 10 25 4 20 4 15 _ _ 10 2 10 _ _ 5 2 7 _ 3 5 1 5 _ 3 _ _ 1 5 _ 1 2 2 _ _ _ 2 2 25 2 15 4 4 20 4 15 4 15 20 4 10 4 15 Feb Mar Apr May June July Aug Sep Oct Nov Dec

1 1 1 _

1 _ 1

2 1

_ 1 1

_ _ _ _ _

_ _ _

_ _ 1

_ _ _

1 1 1

_ 1 _ _ _

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The media plan chart as you can see is merely an implementation of the points mentioned previously. Advertising is specially heavy during the first quarter of the year because three peak periods to include; Eid, Winter, and Product re-introduction with a new theme. A slack period ensures from June to September, here advertising is just enough to keep on reminding the consumers that the product is there. Advertising again picks up in OctoberDecember with Ramazan, Eid, and Winter. That is also the period when the company plans to introduce promotional packs

CONCLUSION AND RECOMMENDATION

CONCLUSION: After complete analysis and evaluation it has been observed that age and brand familiarity is related to each other. As the consumer gaining experience day by day he/she easily familiar with the brand and always ask on repeatedly basis. But young one always wanted to explore new product/brand to increase their own experience. But adults or aged consumers prefer to use the same brand again and again. Old persons never tried to explore new ideas no matter how improve or beneficial to them. After the analysis and evaluation it has been observed that qualification and brand familiarity has no association. As a consumer there is no effect of individual qualification. There is a possibility that high qualified persons can be unaware of the brand. It depends upon their association of the brand. So company should be clear that their target audience in not only educated or higher educated people. After complete analysis and evaluation it has been observed that age and brand taste is related to each other. As the consumer gaining experience day by day he/she easily use the brand and always ask on repeatedly basis. But young one always 43

wanted to explore new product/brand to increase their own experience. But adults or aged consumers prefer to use the same brand again and again. Old persons never tried to explore new ideas no matter how improve or beneficial to them. Research about the association of gender and brand taste gave a very interesting results that there is no association between gender and brand taste liking. It means it is now clear that that one taste can favorite among the two genders as well. No need to increase the brand portfolio for separate gender a separate product. Narrow down to one particular brand and improve its taste and packaging which can attract more customers. Income is one the major factor of consumers spending but our research gave tremendous results about the income that it has no role in the general knowledge about the competitive products in the market. Just needs satisfaction is primary objective they dont care about the other brand in the market. Here as Brand Manager one should focus on the product specification that their product should be distinguished among the other brands in the shelf of any wholesale market. After the complete analysis and evaluation it has been observed that qualification has no role in the competitors knowhow in the consumers. Research gave us the statistics that qualification is one of the factors of general knowledge but it has no role in the choice of consumer at the time of shopping. As for the LU it is good that their brand Bakeri has no specific target segment with respect to their education. Barkeri should focus on its segment with improvement in quality as taste. Area of residence is very important for the segmentation of target market. Research analysis and evaluation tells that there is no role of area of residence in the general knowledge of other available brands in the market. Like posh area people may be unaware of the Bakeri product and on other hand people downtown area know well about the Bakeri and other available brands.

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Analysis and evaluation of the research has been observed that age and brand attraction are not related to each other. As the consumer gaining experience day by day he/she dont want to make experience with product they are using for long time. But teen always wanted to explore new product/brand to increase their experience. Research denies the relationship of gender and brand attraction; means there is no specific product that we can say a separate for male consumer or there is no specific change in linking in brand choice among ladies. Barki Biscuits thats why has good line of taste for each segment of market, choice of taste made consumers life easy. According to research in confectionarys market profession has no association with the brand attraction. Researcher evaluate that there is no specific brand for the doctors or for the teacher. Teacher can like Plain Bakeri while the Doctor can like Coconut or can be vice versa. Brands are not limited to profession but profession has choice to choose any of their favorite brands. After the analysis and evaluation researcher come to conclusion that the variables like area of residence and product availability has no association between them. Area of residence can increase the sale as there is some strong area of residence where rate of buying is very higher as compare to other area of same city. For example in Karachi city there are area where sale at wholesale market vary from one to other as we can see in Imtiaz super market at Bahadarabad and in the EBCO super market at the Forum (Clifton). After the complete analysis and evaluation it has been observed that product availability and profession of consumer has very strong relationship. That indicates that consumer who is a Banker need product at their tea time as they have very limited time for the break so they dont wait. Similarly is a case of teacher who has very minutes in the recession time so product availability is very important otherwise theses professional people will choose another available product for their need.

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Evaluation and analysis of two key variables age and product availability has strong relationship between each others. Different age people show their association with the product specially the old age people need the right product at the right time. Same outcome are from the teens that their associations analysis show very strong relation with the availability of product. Both old age and teen are the more than 60 percent of the consumers of any FMCG product. Manufacturers should keep in mind the product availability is very important for their sale. Consumer buying behavior and the age of customer has very strong association between each others. Complete analysis and evaluation has been observed that age of customer has direct effect on the purchasing behavior of customer. Loyalty is associated with the maturity of customers; mature customers are more loyal as compare to teen agers. Teens are excited and eager to explore new variety and taste at every time of shopping. The result of analysis of gender and consumer buying behavior are very interesting that there is no association between these two variables at all. There is no specific consumer behavior for the ladies or for the gents. Their choice can be same and on same hand their choice can vary from each others. Most important is note down the need of gender not the buying behavior. Researcher comes to conclusion after the complete analysis and evaluation that there is no association between area of residence and consumer buying behavior with respect of any particular flavor of the product. There is no such need of flavor or preference from different areas consumers; they generally prefer the product with respect to their need or on the family demand. Research showed that age and consumer buying behavior with respect to taste has no association with each other. Similar types of conclusions are given in the age and taste because there is a segment of society that has maturity of age they dont

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prefer to try new taste every day. They are loyal customers of any particular product, than teen agers who love to try new taste every time. Analysis and evaluation of gender and consumer buying behavior with respect to taste are observed that they are not associated with each others. Male or female dont have a specific choice during the purchasing time. If they choose any taste to LU (Bakeri) that is because of their need. One key reason of research conduct was to check the influence of age on the buying decision; although consumer buy product either for his/ her personal use or for their family members. Analysis and evaluation of research are that age has no relationship with the buying decision. Buying can from the any age segment; no one can restrict their buying to any age factors. As income play vital role in purchasing power of customer but according to analysis and evaluation of research it has no relationship with buying decision of LU (Bakeri) product. It is not necessary that manager can eat Bakeri (Coconut), even though office clerk can purchase for personal use or for the family usage. So income is not the factor of buying decision. After the complete analysis and evaluation of research it has been observed that there is no relationship between the area of residence of consumers and their buying decision. Buying decision is totally dependent on the choice of customer, his/ her loyalty and their need. Area has no role in the choice of particular product of LU Biscuits. To check the consumption pattern of consumer it important to check first the most influencing factor in consumption and research analysis told that gender is one factor that strong relationship with buying decision in the consumption of consumer. Female sometimes play more important role in the purchase of family grocery items on monthly basis. In some societies male play more roles in the daily consumption.

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So gender is one factor that has influence in the consumption pattern of consumers decision making. Researcher one motive was to check the effects of brand extension on the mother brand that either it sabotages the reputation of parent brand or it enhances the sale of company. Research analysis and evaluation are conducted at significance level of 95% and 99% that brand extension of LU has enhanced the sale and increase the customers by giving them more varieties of taste and innovative packaging. Finally it was important to check the consumer is either happy and satisfied with brand extension of LU (Bakeri) biscuits or the evaluation of research are very satisfactory that consumers are happy and satisfied with the brand extension process. Consumer is happy that LU makes their choice easy with giving them variety of Biscuits with different taste. RECOMMENDATIONS: As age is one of the common factors for consumer to develop brand familiarity. So, the manufacturer should always consider developing brand extension as per different age of consumers. Whenever a manufacturer introduce brand extension of their brand so it is important to provide awareness among the old consumers to use the same. At the time of any change in the product, manufacturer should consider each and every aspect before launch the same in the marketing for the old consumers. As we know that qualification play a very common role in information search, but in the matter of choice of any biscuit from the market doesnt depend upon their education. It depends upon their taste and other factors which play major role in the brand familiarity. Manufacturer of Bakeri should be clear after this reach that their target market is not only highly educated person, that can be someone who is not graduate and can be school going teen or old person.

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As age is one of the common factors for consumer to develop brand taste. So, the manufacturer should always consider developing brand extension as per different age of consumers. Whenever a manufacturer introduce brand extension of their brand so it is important to provide awareness among the old consumers to use the same. At the time of any change in the product, manufacturer should consider each and every aspect before launch the same in the marketing for the old consumers. There is a perception that ladies and gents liking are not same, but research results tell us that there is no association between gender and their taste. Taste of gents and ladies can one common favorite taste. Brand Manager should be clearly focus on the improvement of taste, packaging and improve their brand awareness to increase their loyal customers satisfaction level. As income is one of the major factors of consumers spending but it is not necessary that well earning persons has more knowhow about the available brands in the market. Here we get the message that Bakeri Brand a new dimension for the consumer for the consumer. Right advertisement and good positioning of the Bakeri will more increase the sale and bring more revenue for the LU. As qualification is one factor in maturity of consumer and play a major role in their selection. Research proves that qualification has no association between the competitors knowhow; Means it is not necessary that educated people has the awareness of the available brands in the same category. Continental Biscuit Company can improve their packaging, taste and the marketing campaign to create a good knowledge about the product. Area of residence has major effect on the sale of product. Research analysis and evaluation make it very clear that area has no role on the awareness of any brand; it is marketing campaign and proper advertisement which create the awareness about Page 144 of 170

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any brand. LU should focus on the densely populated area and make awareness campaign among those areas rather than to focus on posh area of the city. When marketer evaluate the segmentation for them age of consumer is very important to know their right target. But research clearly mentioned that that brand attraction has no effect on age. Experience people dont like to change their taste on daily basis; while on other hand teens can be attracted with new style of packaging and taste. Before the Brand extension in FMCG product marketer must do comprehensive research on the different age liking and disliking about the new upcoming product.

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