Principle of Marketing

In the Name of Allah

The Most Merciful the Most Beneficent

“Praise to thee! We do not know anything except what thou hast made known to us: indeed thou art the best knower,
wisest.”

(AI-QURAN 2:32)

SAYING OF HOLY PROPHET MUHAMMAD

(PEACE BE UPON HIM)

“Seek knowledge from the cradle to the grave.”

The Most Merciful the Most Beneficent

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PROJECT ON:
MARKETING
PLAN
T

PRESENTED By:

Atif Aziz MBP-7245

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Marketing Magicians
MEMBERS
Mazhar Saroya 32 (leader)

Ali Adnan 75

Ahsan Yaqub 26

Nabeel Shahzad 38
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Dedication:
We dedicate our whole efforts in
working this project to:

“Our loving and caring parents and teachers and to all

people who cannot afford to study and are living in
misery”
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Acknowledgement
As a matter of fact, people tend to forget those, who are behind their
achievements and have stood for them whenever they need assistance.

A proverb is:

“One can pay back the loan of gold but one dies forever in the debt to those
who are kind.”

• First of all I would like to thank Almighty Allah who gave us courage and
knowledge.

• Secondly, I am thankful to Mr. Nadeem Iqbal Raza and Adnan Razzak

who has provided me Expert advice at each and every step of developing
this project.

• Finally, thanks to my beloved parents who have always been there to

encourage me, pray for me and without them I could not be, what I am
today.
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MAYFAIR BRAND
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EXECUTIVE SUMMARY 7
INTRODUCTION---------------------------------------------------------------- 11
History 13
Chapter # 1
Current Marketing Situation:

• Product Data 14
• Data on Sale 14
• Marketing Environment Factors 15
• Market Customers 15
• Distributors 16
• Competitors 17

Chapter # 2
Opportunities & Issue Analysis:

• Strengths 18
• Weaknesses 19
• Opportunities 19
• Threats 19
• Issue 20

Chapter # 3
Objectives:

• Financial Objectives 21
• Marketing Objectives 21

Chapter # 4
Marketing Strategy:

• Segmentation & Targeting 22

• Positioning 23
• Pricing----------------------------------------------------------------- 25
• Distribution Channel---------------------------------------------- 27
• Sales Promotion and Advertising---------------------------------29
Chapter # 5:
Action Programs:
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● Action Plan------------------------------------------------------------30
● Strategies and Control----------------------------------------------31
● Thank You-------------------------------------------------------------33

Introduction

About the Company

Asian Food Industries Limited (AFI) is the manufacturer of ‘Mayfair’ Brand

confectionery products from Pakistan. The company has been marketing its premier quality sugar
confectionery products in the domestic and export market for more than thirty years. Setup in 1969,
AFI was located in Karachi, commercial hub & port city of Pakistan. With the diversification into
textile business, it was decided to consolidate Mayfair Group’s plant locations. The production
facility of AFI was relocated to Raiwind Industrial Area.

Our Team
Asian Food Industries takes pride in its professional team administering work with the
aid of the latest management and communication systems. The AFI team is 550 strong, highly
motivated and dynamic professionals. Asian Food Industries with a strong customer focus has
independent marketing teams for the domestic and international markets.

Specific Focus Product

Choc Day Chocolate coated Biscuit.

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Market Trend:

Nowadays in the market of biscuit & confectioneries there is no chocolate coated &
sandwich biscuit. Mayfair checked out the trend & tends to change it & Mayfair’s quite enough
succeed in changing the trend by introducing Choc Day ,a chocolate coated & sandwich, biscuit.

VISION

To be the best in our business and customer’s first choice

MISSION SATAEMENT

Asian Foods has been dedicated to its customers by providing confectionery

products, premium in quality, throughout their lives. AFI takes pride in each
child who has enjoyed Mayfair candies, grows up to retain Mayfair as the
choice for his family’s sweet temptations. As a company Asian Foods has a
simple but the most important mission:

“To make our customer’s happy”

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HISTORY

The company has been marketing its premier quality sugar confectionery products in the
domestic and export market for more than thirty years. Setup in 1969, AFI was located in Karachi,
commercial hub & port city of Pakistan.
Asian Food Industries takes pride in its professional team administering work with the aid of the latest
management and communication systems. The AFI team is 550 strong, highly motivated and dynamic
professionals.
AFI owner of Mayfair Brand has been marketing its products since 1969 in the international and
domestic market. The company pursuing an aggressive marketing strategy and adhering to trade mark
rules & regulations of its international markets, supplies under alternate trade marks in number of
countries. Starting with a modest plant base, but with steady growth and induction of new machines
and technology, Mayfair today has a leading share in the Pakistan’s domestic market of sugar
confectionery.

Mayfair is currently the market leader in Deposited Candy category with the brand of “Mayfair
Creamers” in the domestic market. The company has achieved significant success in marketing its
candies & toffees in more than 20 countries of the globe. The company strives to continually develop
new products for differing taste preferences in diverse markets.

In 1979 Mayfair became the first company to introduce bubble gum to the Pakistani market.

Asian Food Industries is always planning for future challenges.

Mayfair recently introduced CHOC DAY (a chocolate coated biscuit) on 1st January 2006. This
product is launched in market with no advertisement but May fair advertised it by going door to door
and publicity in schools.
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CURRENT MARKETING SITUATION:

MARKET SHARE:

Mayfair has captured 18% share of confectionery

market.

PRODUCT DATA:
The chocolate-coated biscuit choc day is just one month old, as it was introduced in January
2006. It is the 1st ever biscuit in the market that is chocolate coated & sandwiched. Mayfair use plant
(for the production of this product & all others) that was exported from Germany two years ago. The
plant was carrying modern technology.

DATA ON SALE
As the choc day was launched in January so there is no much data about sales of choc day. But we
have only one-month sale data.
Firstly May fair produced 800 ctn of choc day. After its production it was in the market & customer
like it so May fair has resale order.
Total sale in January 1,946 ctn which cross the forecasting sale of January & got
15% extra from the forecasting sale.
The demand of choc day gradually increases. More & more customer gets attracted towards it
because the taste of biscuit is very good & it is chocolate coated & sandwich.

MARKET CUSTOMERS
The users of choc day are from 4 – 15; also Mayfair targeted middle class &
upper middle class. The customers are much satisfies with chocday. They enjoy its taste as well as the
chocolate that cover the whole biscuit. All these factors are due to the repetitive orders from customer
to retailer or wholesaler & from retailer to distributor to manufacturer (Mayfair).

MARKETING ENVIRONMENT FACTORS

The forces outside marketing that affect marketing management ability to develop and
maintain successful relationships with these target customers. There are two types of marketing
environments that may affect any company’s operation, Microenvironment and Macro environment.

Demographic Factors
Demography is the study of people so Mayfair has considered the following demographic factors
before entering in the Pakistani market.
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Population
Due to 14 crore population of Pakistani Mayfair has found that this market has very
growth potential in it due to this they jumped in this market.

Consumer Market
Recently surveys showed the people of Pakistan are looking for quality house
hold electronics product which will compete Japanese products in quality but have a
affordable able price also.

Climate
The climate of Pakistan is in favor of Mayfair because the Pakistani climate has the
perfect combination of all the four seasons due to which Mayfair has the option to facilitate the people
with its all range of products.

Cultural Factors
Every group and society has its own culture. Cultural factors affect Mayfair’s
purchasing massively. Different communities and group of people have reshaped Pakistan’s culture.
In recent years the wedding seasons especially has become important part of our culture in which
sales of Mayfair products go very high. Mayfair products are purchased for the purpose of “Beead”.

Personal Factors
Buyer’s decision is also influenced by personal characteristics such as buyer’s age and life
cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that people taste
and way of living changes with passage of time.

DISTRIBUTORS
May fair’s distribution network is one of the strongest distribution network in PAKISTAN. The
Pakistani market is largely trade driven with more than 60% of the sales coming from the 400
wholesale markets spread all across Pakistan. This trend is now giving way to more
sophisticated distribution mechanisms. Mayfair has a distribution network of 375 distributors
covering the length & breadth of the country. But Mayfair create new distribution network for
biscuit market & a small network is developed round about 50 distributors & 100 wholesalers.
Asian Food Industries takes pride in its professional team administering work with the aid of the
latest management and communication systems. In all the sales & distribution network is
energised by a team of 100 sales executives.

COMPETITORS:
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Pakistan's premium range of sandwich biscuits is known for

its soft, creamy fillings. Consumers can select from a variety of flavors: Chocolate,
Coconut, Strawberry, Banana, Vanilla, Pineapple and now Power Milk.

Kolson has the distinction of being among the oldest food

manufacturing & proceesing industries in Pakistam. Eversince it’s
inception in 1942, Kolsons product have always been synonymous
with innovative food products. The company gives greater choice to
its customers and it has a belief that customer is always on the top.

EBM enjoys the distinction of being the first food company in

Pakistan to promote biscuits as “food between Meals”. As a
socially conscious company, EBM consistently supports various
humanitarian causes in the areas of education, sports, healthcare
and help for the less privileged. EBM is the country’s leading
biscuits manufacturerwith an annual production capacity of 50,000
metric tons and sales turnover of Rs. 4 billion.
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COMPETITOR’S MARKETING STRATEGIES

EBM and KOLSON have following marketing strategies to compete with

Mayfair:

• Charge the preferences of the customer through massive promotion.

• Improve the distribution channels.
• Give credit to the customers.
• Improving the quality of the product and offer advanced features.
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OPPORTUNITIES AND ISSUE ANALYSIS

SWOT ANALYSIS
Strengths:
• New technology plant
• Quality product
• No compromise on quality
• Medical insurance of employees
• Company image (5th position in PAKISTAN)
• Imported ingredients
• Packaging from packages
• 1st ever chocolate coated biscuit

Weaknesses
• Lack of regional offices in other cities of PAKISTAN
• New in biscuit industry
• Chocolate melting in summer
• Small distribution network in biscuit industry
• Costly product (choc day)
• Seasonal product
• Yet not able to complete the demand of customers in biscuit market

Opportunities
• Set a separate plant for biscuits manufacturing
• Increase distribution network
• Pursue of newer technologies and techniques
• Choc-day junior (only sandwich)
• Smart 2 (for children)

Threats
• Political instability/economic as well
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• No political affiliation
• Lack of production
• Lack of distribution
• New entrants from the existing competitors.
• Costly product
• Only use in summers

ISSUE ANALYSIS:

After analyzing the strengths and weaknesses of Mayfair, following are the
main issues that Mayfair must address:
• Choc day junior
• Effective competition
• Own Distribution Channel

Choc Day Junior

In summer we introduce Choc Day Junior in place of Choc Day. Because
in summer chocolate does not keep its condition as good as in winter and we will introduce
smart 2 chocolate for children only because we will target them.

Effective competition
People have strong image regarding Mayfair, so it would not be
difficult for it to compete here. Mayfair products are already available and it has a good potential of
being a market leader being second yet share-wise in the market. So Mayfair can compete here
effectively.

Own Distribution Channel

Mayfair has already strong distribution channel for its
confectioneries product. For enhancing more & more customers & market share Mayfair own
distribution channel in terms of setting new distribution channel for bakers as well as increase the
older one.
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OBJECTIVES

Financial Objectives:
• Earn an annual rate of return on investment of 10 percent after the taxes over the next
one year.
• Produce net profit of RS 8 million next year.
• Increase sales and service center for the convenience of the customer.

• Achieve 1st six month total sales revenue of Rs80 million, based on an average price of
Rs60 per box.

Marketing Objectives

• Improve product quality.

• To achieve the sale target of 25,000 units in first six months.
• In next six months increase market share to 15%.
• Generate 40 % brand awareness within the consumer target market
in first six months & 60 % brand awareness within the customer target market by the end
of next six months.
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 Principle of Marketing

MARKETING STRATEGY:

SEGMENTATION AND TARGETING:

Dividing a market in to distinct groups with distinct

needs, characteristics or behavior who might require separate products or
marketing mixes. In evaluating different marketing segments, a firm must
look at three different factors:
• Segment Size.
• Segment Growth.
• Segment Structural attractiveness and company objectives and resources.

Mayfair’s Segmentation Strategy

Mayfair serves its products using mass marketing technique, which obviously falls
in undifferentiated marketing, and undifferentiated marketing means no segmentation, but
there are minor factors on which we can say that the mayfair segments its products and then
targets the customers somehow. These factors are as follows.

Geographic Segmentation
Internationally
Mayfair segments its products country wise and region wise, here the most important thing
is the quality and features of the products, it varies according to the income level of the
people in that country.

Locally
In Pakistan the Mayfair segments more in urban and suburban areas as compare to rural.
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Demographic Segmentation
Age
Mayfair Pakistan they have segmented mainly on the BABY BOOMERS born
between
(1946 to 1964) and GENERATION X born between (1965 to 1977).

Income:
Mayfair segments different income levels by quality and features.

Target Marketing:
This is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
After evaluating different segments, the company must now decide which and how many
segments it will target, because buyers have unique needs and wants, a seller could
potentially view each buyer as a separate target market. Ideally, then, a seller might design
a separate marketing program for each buyer. There are three types of market segments.

 Undifferentiated marketing. (Mass Marketing)

 Differentiated marketing. (Segmented Marketing)
 Concentrated marketing. (Segmented Marketing, small segment)

POSITIONING

In positioning you depict an image of your product in the consumers mind as compared
to you competitor’s product. We want customers and potential customers to view us as the
most comprehensive and most authoritative source of Chocolate. As a secondary positioning
theme, we also want people to view us as a convenient and seasonably cost effective source
of the special chocolate. We have to position on the features, taste and lower level, middle-
level and higher-level.

Mayfair will position its product on basis of quality and reliability. As Mayfair has
strong brand image so it is difficult for it to position and market its product but it has dealt
with this matter quite nicely be maintaining quality ad having lower prices as compared to
the rest of the branded market.
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• Mayfair has positioned itself on the basis of Quality and Price. However as
Rio and Prince are close competitors of Mayfair, therefore they are always
under consideration with respect to positioning.
• Position of Mayfair as a company providing quality biscuits, confectioneries &
sweets in reasonable price is influencing the current and prospective
customers to buy Mayfair product; moreover Mayfair has already been
satisfying need of people with quality products.
• Mayfair is using new technologies in the confectioneries, Sweets & biscuits
and is selling these products on reasonable prices. They are not charging very
high from the customers. Incase of high technology cost involved Mayfair does
not rise its selling prices rather it reduces its profit margins.
• Mayfair’s competitors are RIO and PRINCE. Mayfair has a strong image in
the competitor’s eyes; therefore the competitors have to make their marketing
plan accordingly to cater more buyers for their products. This is all because
Mayfair has a particular position in the market and in the eyes of its
customers.

Competitive Advantage

The key to winning and keeping customers is to understand their needs and buying processes
better than competitors do and to deliver more value. Positioning begin with actually
differentiating the company market offer so that it will give consumers more value than
competitors offers do. A company or market offer can be differentiated along the lines of
product, services, channels, people or image.

AFI’S Mayfair will enjoy following

competitive advantages

1. Chocolate coated & sandwich biscuit

2. Very good taste according to the customer demand
3. Image
4. Financial health
5. Socially responsible firm
6. Vast experience of research and development
7. Strong logistics and efficient sales force management

Product Management:

Mayfair’s product line comprises of

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• Two way stretch (both up-ward & down-ward stretch)

• Confectioneries & sweets
• Non-sandwich Biscuit
• Chocolate Confectionery
• Boxed Chocolates
• Blocks and Moulded Chocolate
• Bite-Size Chocolate Items
• Other Chocolate Confectionery
• Sugar Confectionery
• Fruit Sweets

PRICING STRATEGIES

NEW PRODUCT PRICING STRATEGIES

Pricing strategies usually change as the product passes through its life cycle. Companies
bringing out a new product face the challenge of setting the prices for the first time.

Market Penetration Pricing

Mayfair when started its operation in Pakistan their pricing strategy was market penetration
pricing.
Penetration pricing is setting a low price for a new product in order to attract a large
number of buyers and a large market share.
The chosen pricing strategy for Choc Day is High value strategy, As Choc Day’s
cost is medium but quality is high.

The pricing for choc day is according as:

The total cost & retail price is listed below:

Packaging Per Pack Per Box Per Carton

Product Chocolate enrobed Chocolate enrobed Chocolate enrobed cream

cream sandwich biscuit cream sandwich sandwich biscuit
biscuit
Choc day sandwich Choc day sandwich Choc day sandwich
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Unit WT. (without 25gms 25gms 25gms

wrapper)
No. of PCs 1 pc 12 pcs 36boxes
GRAMAGE PER 25gms 25gms 25gms
UNIT
RETAIL PRICE Rs. 5/- Rs. /- Rs. 2,160/-

EX FACTORY RATE 3.53 42.4 1,526.53

ADD 17.07% S.TAX 0.6 7.24 260.58
.
PRICE WITH S.TAX 4.13 49.64 1,787.11
DISTRIBUTOR
MARGIN 11% 0.5 6.14 220.88

TRADE PRICE 4.65 55.78 2,007.99

RETAIL MARGIN 0.35 4.22 152.01
RETAIL PRICE 5 60 2,160.00

Channel level
We are using indirect channel of distribution because we are offering consumer to buy from
our regional distribution centre or you can buy it from selected supper store and we are also
offering home delivery services.

Indirect channel level

Innovators (Mayfair) is following the indirect channel of distribution

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Manufacturing plant Regional distribution center Consumers

Regional
Manufacturing plant Super store Consumer
distribution center

Regional distribution
Manufacturing Sales rep Consumer
center

Distribution Channel
We are using both conventional as well as vertical marketing system but our main
four is on vertical marketing system.

VMS (vertical marketing system):

Mayfair (confectioneries)
plant

Mayfair (confectioneries)
regional distribution

Consumer

Conventional
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Mayfair (confectioneries)
plant

Mayfair (confectioneries) Super store

regional distributor vesicular

Consumer

In VMS we are following corporate VMS own distribution center. In we talk about Lahore,
we divide Lahore in four regions and we have four distribution centers in each part. Our
main branch is in Lahore & one branch office is in Karachi.
SALES FORCE & SERVICE:

Mayfair has a plan to hire sales force according to the requirement. It has
planned to provide quick services, to its customers so it has its Sales Offices in major cities
of the country including Lahore, Karachi, Rawalpindi, Gujrawanla, Sargodha, Faisalabad
and Multan.

SALES PROMOTION

Mayfair has a plan to concentrate in sales promotion by extending the prize competition to
the customer and by having proper display centers.

ADVERTISING

The field of advertisement is one area where Mayfair has always emphasized.

Advertisement Objective
Type of advertising with respect to product life cycle that Mayfair adopts is
reminder type. The reason behind this fact is that Mayfair products are in growth part of
product life cycle so for such a product companies mostly go for reminder type of
advertisement so that they can penetrate more and more and same is the case with Mayfair.
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Setting of advertising budget

Mayfair sets its advertisement budget on the basis of competitor based budgeting.
Major competitor of Mayfair is EBM and KOLSON and as Mayfair realizes that EBM &
KOLSON have increased their advertising budget, straight away Mayfair management plans
to do the same so that they can compete in advertising department as well.

Advertisement Media
Mayfair Company advertises its products mainly through electronic media that
includes Television. Moreover leading newspapers of Pakistan are also targeted by Mayfair
for advertising .They are using Billboards for their advertisement.

RESEARCH & DEVELOPMENT (R & D):

Mayfair spends lot of money to convert the customer’s needs and wants into the product.
Mayfair has the plan to increase its research and development budget by 10% to come up
with the customer’s needs and wants.
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ACTION PROGRAMS:

ACTION PLAN:

Activities Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Launch CHOC-
DAY
Promotion
Sales Offices
Sponsor Sports

STRATEGIES

• Mayfair’s planning is to launch CHOC DAY by January.

• Mayfair has positioned its biscuits as quality products for everyone for
enhancing their sales as compared to its competitors.
• Mayfair will use standardized & very good quality ingredients. Those
ingredients will be taken from other countries & as well as locally for
enhancing customer’s satisfaction.
• As chocolate melts in summer, so Mayfair will launch “CHOC DAY
JUNIOR”, a sandwich biscuit not chocolate coated, in the last middle of April.
• Mayfair will introduce new flavors like Vanilla, Strawberry and Banana
Pineapple, Power Milk in CHOC DAY & CHOC DAY JUNIOR for capturing
more & more market.
• Mayfair will introduce new packing style that will turn the attention of
customers towards it.
• Mayfair will extend its product line through introducing non-sandwich
biscuit only for children in June.
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• Mayfair already has very strong distribution network in confectioneries;

Mayfair will introduce a new distribution channel for bakers to facilitate
more customers.
• Mayfair will sponsor sports activities.

CONTROLS

Monitors Sales:

Mayfair has developed an automated system through which it monitors monthly yearly and
daily basis sallies through the country. This system is completely decentralized. Through this
system it can evaluate its progress and demand of its product.

Problem Evaluation

Higher Management reviews the results of each department and identifies the department
that is not attaining their goals. Higher management then establishes the performance
review committee that explores the problem regarding attainment of those goals. These
problems are solved along with the head of the department. This department adopts the
strategies according to the recommendations of the committee.

Reporting System:

An automated system, which Mayfair uses automatically, generates the daily, monthly and
yearly reports.
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