Report on Strategic Marketing

Visited Organization Volka Foods International

Project Supervisor Dr. Muhammad Rizwan

Authors Name
Muqaddas Waseem (Leader) 41

Awais Akram 06

Ahsan Altaf 42

Muhammad Rehan Rafique 36

Class MBA (Morning) 1st semester

Session 2019-2020

1|Page
 Contents

Executive Summary............................................................................................................... 4
Introduction ........................................................................................................................... 5
Volka International ................................................................................................................. 5
Volka Pakistan........................................................................................................................ 6
History .................................................................................................................................. 7
Volka Food Situation............................................................................................................. 8
PHILOSOPHY OF FULFILLMENT.............................................................................................. 9
Volka Food Scope .................................................................................................................. 9
Volka food Context .............................................................................................................. 10
Volka Food Vision ............................................................................................................... 10
Volka Food Mission ............................................................................................................. 11
Volka Food Goals................................................................................................................. 12
Volka Food Goals................................................................................................................. 13
Official goals .................................................................................................................... 13
Operative goals .................................................................................................................... 13
Cores values and principles .................................................................................................. 13
Organogram of Volka Food ................................................................................................ 14
Volka Food Departments..................................................................................................... 15
Marketing Mix ..................................................................................................................... 16
Product: ................................................................................................................................ 17
Product line: ......................................................................................................................... 17
Cookania............................................................................................................................... 19
Distribution Channel ............................................................................................................ 22
Corporate social responsibility of Volka food; ................................................................... 25
Market Environment Analysis ............................................................................................ 25
Portfolio Analysis ................................................................................................................ 25
Star ………………………………………………………………………………………...26
Cash Cow ............................................................................................................................. 26
Question Mark ...................................................................................................................... 27
Dog……… ........................................................................................................................... 27

2|Page
 Conclusion for BCG Matrix ................................................................................................. 27
SWOT Analysis in Volka food .................................................................................... 27
PESTEL ANALYSIS:- ................................................................................................ 29
Porters Five Forces ...................................................................................................... 35
Market Segmentation ................................................................................................ 37
Volka Food Strategy ..................................................................................................... 40
Market Success Story................................................................................................. 41
Evaluation .................................................................................................................. 42
Short analysis in terms of working environment ......................................................... 42
Recommendation of Volka food ……………………………………………………42
References……………………………………………………………..........………………..43

3|Page
 Executive Summary

This project was assigned to us by respected Sir Muhammad Rizwan related to strategic
marketing. The project is on Fast Moving Consumer Goods. (FMCG) industry i.e. VOLKA
FOODS INTERNATIONAL. This is comprehensive report on different departments of volka
foods international especially it is concerned with the marketing department and it evaluates
the firm on different analysis which help in determining company’s strategic positioning and
how it is performing in the marketing relative to its competitors.

As we all know the volka is a single member private company. Volka is mega structure of SM
group, which has been successfully operating in the field of confectionary and bakery items
from decade. Volka foods international have been exporting their products as well hence
contributing to the economy of Pakistan as well. The company is chaired by Ch Zulfiqar Anjum
and Ch Saim Zulfiqar is the CEO of company.

The report is based on different contents like introduction and history of industry how it
survives and growth in the market and also analyze the firm on different analysis like SWOT
which includes the strengths, weaknesses opportunities in market to look for and the threats to
be avoided. PESTEL analysis which includes 6 different factors that might affect the
organization in its external environment. And Competitor Analysis with respect to the
competitors.

As far as the data is concerned, we have collected data from different primary and secondary
resources. Primary data includes the employs of VOLKA Specially Mr. Muhammad Ishfaq
(Business Development Manager) who help us regarding our report and arrange our visit and
secondary is from their website and other internet sources relative to the content. The purpose
of this report was to see how the knowledge is implemented in practical, to intensify the
confidence, to acquire some knowledge about the organization and it working environment.

4|Page
Introduction

Volka International

Volka Food International is a modern, state of the art production facility of confectionery and
bakery products. They are specialize in providing hygienic products in line with international
production standards. Their commitment to quality of our products and hygiene is unparalleled
and that is what makes them who they are.

We have a wide portfolio of products that have been in the market for several years. These
include different types of confectioneries like jellies, chocolates, bubble gums, toffees and our
range biscuits and cookies as well that will keep you coming back for more!

Our products have been widely exported to international markets since 2009 and we have been
growing at an exponential rate ever since. Due to our state of the art facilities and quality
product manufacturing, penetration in global markets has been seamless. This has enabled us
to withstand the capacity for accommodating all sorts of demands and buyer needs such as:

Customized packaging
- Private labeling
- Design and development of packaging material for overseas clients.
- Bouquet of products enables clients to choose variety of categories.

At Volka Food International (VFI), our vision is to see beyond the present. We know
that creating the finest confectionery and bakery takes more than a simple ingredient. It is about
the finest manufacturing practices and human resources, which ultimately push us to transform
into an even more dynamic and progressive management structure of the highest standards. We
strive to keep pushing the boundaries of innovation to bring you the very best.

Volka International handles the overseas operations of Volka Food International, which
is a leading exporter of flavorful food products to different countries in Central Asia, Middle
East, Africa and Europe Volka International is always on the. Lookout for new markets for
Volka’s high quality food, bakery and confectionary products. Currently, Volka International
is focused on expanding its footprint in the Far East, American and Australian markets.
Countries in Central Asia, Middle East, Africa and Europe.

5|Page
Volka Pakistan

Volka Pakistan is the domestic chapter of Volka Food International. We are dedicated
to manufacture, market and distribute wholesome, hygienic and heavenly confectionary,
bakery and pasta products, all over the country. Headquartered in Multan, Volka Food
International has territorial workplaces in each significant city of Pakistan. We owe its
prosperity to the team of professionals who are driving hard to make Volka Food International
the best brand in the market.

VFI is a modern and state of art production of Confectionery & Bakery Products. Our
Aim is to produce Hygienic products with international standards of productions. It’s our
achievement that’s why we proudly claim that we are producing unmatched “Safe to Eat"
products.

The vision to see VFI as a professionally managed Human Resource company,

production of confectionery & Bakery with best manufacturing practices, by transforming a
National company into a very dynamic and progressive management structure on Multinational
standards. Now with the aid of modern technology, we are using best and latest technology.

No other manufacturer comes closer. The company's focal point will remain on
Children’s needs through Innovative Hygienic Products. In the era, where only productions are
important, we believe productions with best practices.

This website brings value to all our giggled customers by giving them values through
our “Safe to Eat" products, in a way that will become the centre of attraction for you and for
your loving children that will win your hearts with your confidence on our products.

6|Page
History

a. 2007

The foundation was laid and the construction started in September 2007.

b. 2010

• September 2010: installation of a mega plant of gummies and other machinery of

confectionary items.
• June 2010, commissioning of plant took place.
• Products’ trials and packaging development happened between July and September
2010.
• Huge investments were made in putting up yet another factory along with the import
of a gummy plant WDS from Germany, wrapping machines from Japan, other
equipment from Italy, China and professional expertise from abroad and within the
country.

c. 2011

Volka started its export to many Asian, Gulf and European countries in September seeing a
huge turnover of $1.8 M/year.

d. 2012

• The brand became a huge hit. Giggly products were present all over Pakistan.
• Jelly, our flagship category took its lion's share with 40% of market share in Pakistan's
confectionary market.
• The brand now has 20-30% market share in overall confectionary market (as per sales
figure).
• Way back in 2010 the company started off with a strength of 200 Sales work force which
has increased to more than 350, along with a sole distribution network

e. 2013

VFI started its operations in the country with an initial strength of 600 employees. Currently
we have 1500 to 2000 work force.

7|Page
The company at present has an outstanding category portfolio, i.e. jellies, bubble gum, chew
toffee, candies, lollypop, chocolates etc.

Head office

3km Bahawalpur bypass road, Multan, Punjab, Pakistan, N-5

Landline:

+92-61-6527661-2

Fax:

+92-61-6527663

Email:

info@volkafood.com

Volka Food Situation

An uncompromising passion for quality and innovation, a world-class production,
marketing and distribution infrastructure is the strength that defines Volka Food.

Volka Food International's strictly adhere to the high standards as symbolized by F.S.C.
Food served to the public must meet the company's excellence standards or it will not be served
at all; the service must be fast and courteous; and cleanliness from kitchen to utensils, must
always be maintained.

The main situations are defined as given below.

1) Competitive position
2) Competitiveness changes
3) Strategic context
4) Performance improvement system

8|Page
PHILOSOPHY OF FULFILLMENT

At Volka Food International, we follow a very simple ideology: FULFILLMENT. We

believe everything we produce must be a source of fulfillment for our end consumer who
struggle for taste and quality, our association must be a wellspring of fulfillment for our
merchants, wholesalers, sellers and affiliates who aim for development and growth and last but
not the least every moment of the day must be a cradle of fulfillment for our team who wishes
to achieve excellence and glory in careers.

Volka Food Scope

Volka food may take many forms depending on the type of project being implemented
and the nature of the organization. The scope statement details the project deliverables and
describes the major objectives. The objectives should include measurable success criteria for
the project.

The scopes of Volka food are defined as given below.

Our Effectiveness

Organizational effectiveness is the concept of how effective an organization is in

achieving the outcomes the organization intends to produce. Product development is very
crucial for any

Performance Excellence

An uncompromising passion for quality and innovation, a world-class production,

marketing and distribution infrastructure is the strength that defines Volka Food.

Volka Food International's strictly adhere to the high standards as symbolized by F.S.C.
Food served to the public must meet the company's excellence standards or it will not be served
at all; the service must be fast and courteous; and cleanliness from kitchen to utensils, must
always be maintained.

9|Page
Succession Planning

Identification and development of potential successors for key position in an

organization through a systematic evaluation process and training

Unlike replacement planning (which grades an individual solely on the basis of his or
her past performance) succession planning is largely predictive in judging an individual for a
position he or she might never have been in.

Team Intervention

The purpose of this team is to help employees. Members of the team that are struggling
in some way. This usually refers to performance but can include emotional and behavior and
social concern.

Volka food Context

The Volka food context refers to the scope of an entity, such as

1. parent organization (organization owning one or more entities)

2. enterprise (an entire organization)
3. division or department (a sub-organization within the overall organization)
4. work unit (a sub-sub-organization)
5. Work role (one person’s job or part of a job).

Volka Food Vision

Our vision is to create a wide and innovative range of the most endearing brands and to
be the market leader in confectionery and bakery production category. It is in our genes to love
& protect our children.

It is for this reason parents are extremely conscious of what children eat & whether the
ingredients are healthy or harmful. So, we insist on only the very best for our products and
processes.

Our modern, world-class laboratory is staffed with highly skilled and experienced
technical professionals and modernized equipment for ingredients testing. We are determined
to maintain the quality through our strong procedures and standers.

10 | P a g e
Volka Food Mission

Our Mission is to provide the high quality products while analyzing strong procedures
and strict standards. At VFI, we focus on providing the consistent quality to our customers and
we have achieved high level success in maintaining the persistent quality and procedures.
Consistent quality cannot be maintained without strong Quality Checks and modern Research
and Development at all levels.

At VFI, our world class laboratory experts in examining regular hygiene check for
every lot and SKU. Our team of experts consists of highly trained professionals, technical staff
and latest equipment’s like Moisture Analyzers, Ash Determination equipment,
Spectrophotometer and purity confirmation equipments for ingredients used in our products.

Research & Development at VFI strives to anticipate changing needs and tastes and
meet them accordingly. We have an experienced Confectionery and Bakery research staff that
put forth ideas that are evaluated, refined, and transformed into an unmatched product made
with only the very best ingredients sourced from all around the world.

We have a Mission of "creative work undertaken on a systematic basis in order to

increase our products and customers". We are our own competitors and believe in striving to
continuously improve our products with changing times and trends.

11 | P a g e
Volka Food Goals

 Innovation
 Responsibility
 Team work
 Ethics
 Excellence
 Trust
 Customer
 Goals

12 | P a g e
Volka Food Goals

There are many advantages to establishing organizational goals: They guide employee
efforts, justify a company's activities and existence, define performance standards, provide
constraints for pursuing unnecessary goals and function as behavioral incentives.

There are two main goals of Volka food.

Official goals

In Volka food the official goals is detail a company's aims as described in their public
statements, such as the corporate charter and annual reports. They help to build the
organization's public image and reputation.

Operative goals

In Volka food the operative goals are the actual, concrete steps a business intends to
take to achieve its purpose. A company's operative goals often don't parallel its official goals;
for example, while a nonprofit volunteer organization's main official goal may be community
service, limited funding might mean that its operative goal of fund raising will take precedence.

Cores values and principles

Our Principle of Quality Assurance is the “OPPORTUNITY IS A

RESPONSIBILITY”, we at VFI not only maintaining the top Quality but focusing on
improving our procedures by following strict standards. We believe in the principle of
continuous improvement hence our purpose is to create every product flawless.

Our focus is to provide delicious and hygienic products to every customer. We have
managed to produce high standards in maintaining quality and creating values. This
consistency could not be achieved and maintained without strict Quality assessment and
innovative R & D at all levels.

Our philosophy and principles of good quality product is:

13 | P a g e
  100% fulfillment with Standards and Specifications.
 100% Customer Satisfaction as per their requirements.
 100 % Hygienic Food, Safe to Eat.
 100% Environmental Friendly processes

Organogram of Volka Food

A company's organogram or organizational chart typically illustrates relations between

people within an organization. Such relations might include managers to sub-workers, directors
to managing directors, chief executive officer to various departments, and so forth. When an
organization chart grows too large it can be split into smaller charts for separate departments
within the organization. The hierarchy of Volka Foods is as follow

14 | P a g e
 Volka Food Departments

All Departments of Volka Food are defined as given below.

HR & Admin Department

HR & Admin department take cares of the human resources and their benefits and
provide facilities to our employees for smooth working.

Our environment is about empowering individuals to be successful in achieving

business objectives and their personal career objectives.

We work on policies, procedures, processes and systems that attract new pool of
talented human resource towards us and satisfy our existing employees to enhance their utmost
efforts towards the continuous improvement.

Marketing Department

This department of VFI engages with our customers closely to understand their needs
and requirements to improve Brand Development.

Brand development is about creating exciting visions for our brands and developing
plans keeping in mind full marketing mix. It contains brand communication, innovation and
channel specific prepositions.

Sales Department

This department work as the front force of the company to directly provide the products
and services at the doorsteps of the retail customers.

Our Sales department consists of an energetic sales force nationwide with extremely
target oriented and energetic mind set-to achieve the business objectives.

15 | P a g e
Production Department

The production department creates products with breakthrough technologies to give

consumers a pleasurable experience.

We always strive for producing safe to eat products under hygienically controlled
environment through state-of-the-art plant.

Our ultimate goal is to provide people best food to cater to their needs, wants, desires
and taste.

I.T Department

Our IT department facilitates employees with more effective working and closer
teamwork in pursuit of competitive advantage.

IT analysis and development manages resources in order to plan and carry out different
projects according to the internal requirements.

IT provides quick solutions to meet the international business standards and

requirements with an excellent team working on the continuous improvement of organization

Marketing Mix
A marketing mix is a term that created by the American Marketing Association back
in the 1950s to explain how marketers make important decisions regarding how they execute
a successful marketing plan.

‘‘The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market.’’

A marketing mix is associated with the four Ps:

1. Price
2. Product
3. Promotion

16 | P a g e
 4. Place

1. Product:

Refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't
do any good.

The marketer needs to consider the life cycle of the product and any challenges that
may arise when the product is in the hands of the consumer. For example, the earliest version
of the iPod had a battery life problem that was only noticeable after a certain amount of time,
and Apple needed to be able to combat that problem.

Volka foods products have been in business for several years, which includes Jellies,
Bubble Gum, Candies and Biscuit

Product line:
Volka Foods product lines are:

 Confectionary
 Bakery

17 | P a g e
CONFECTI
BAKERY
ONARY Giggly
Cookania
Jellies
Cookies
Bubble gums
Biscuits
Bunties

Candies
Chew beans
Lolly pop
Waffer

18 | P a g e
Cookania
Cookania is Volka’s bakery side, they divide it into three categories:

Cream/Sandwich
Plain Biscuits Cookies
biscuits

Dream Cream
Milkabisk Tea Time
Lemon Flavor
Cake Rusk Chocorama
Sandwich

Chocolate Sandwich Khaas Choco chip

Layers Gold Khaas khatai

2. Price

Refers to the value that is put for a product. It depends on costs of production, segment targeted,
ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can
be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used
a demarcation, to differentiate and enhance the image of a product.

When setting a price, a marketer needs to consider the customer's perceived value
of the product, and consider the fact that price can dramatically change the marketing
strategy. A low price ensures that more customers will buy the product, but the price
also needs to recover any costs to make the product and ensuring the profit margin and
survival of the business.

Role of price

Price is the amount a customer pays for a product .Only “p” which generates revenue
for the firm. Price of cookania products is decided by VFI by considering a number of factors
including market share, competition, material cost, product identity and customer perceived

19 | P a g e
value. They are selling their products with low profit margins. They are aiming to provide
qualitative and innovative products with suitable price that will cover their fix and variable cost
with some profit to their consumer having market penetration strategy in order to capture large
market share in Pakistani market where they are at 4th number r. Minor fluctuation in the price
can lead towards sales performance.

a. Price discounts

Marginal Retail price to final consumer is same all over the Pakistan but the type of
discount is different to the distributor, wholesaler and retailer. According to the price policy of
VFI, discount to distributor is 11% on their investment out of which distributor is bound to
give 7% to wholesaler and 4-5% to the retailer.

b. Schemes

VFI has 1 ticky pack free scheme on SKUs of different products. Recently, 24+1
scheme on Pikanut and coupon scheme (i.e. wholesalers and retailers are given targets to be
included in scheme) and the participants can win a tour to Dubai via lucky draw.

Pricing strategy of Cookania

Cookania products all over Pakistan are available in:

 Rupees 5 (ticky pack)

 Rupees 10 (mini snack pack)
 Rupees 15 (snack pack)
 Rupees 30 (family pack)

According to Philip Kotler, prices that end with 0 and 5 are also popular and are thought to be
easier for consumers to process and retrieve from memory.

20 | P a g e
Prices of products

VFI is selling cookania products to wholesalers and retailers on credit basis and recovery is
made in portions.

Product Name Product Type Flavor Price (MRP)

Tea Time Cookie Vanilla and Lemon 5, 10, 15, 30
Pikanut Cookie Peanut 5, 10, 15, 30
Chocorama Cookie Chocolate Chip 5, 10, 15, 30
Vanilla
Khass Khatai Cookie Almonds & 5, 10
Cardamom
Cocodelite Cookie Real Coconut 5, 10, 15, 30
Choco Chip Cookie Chocolate Chips 5, 10, 15, 30
Cake Rusk Cookie - 5, 10, 20, 50
Raisano Biscuit Nuts & Raisin 5, 10, 15, 30
Gold Biscuit Milk & Butter 5, 10, 15, 30
Zeeraray Biscuit Zeera 5, 10, 15, 30
Dream Cream Sandwich Biscuit Chocolate Vanilla 5, 10
and Strawberry
Vanilla
Mini Me One Bite Biscuit Strawberry 5
Milkabisk Biscuit Milk 5, 10, 15, 30
Khaas Biscuit Milk & Wheat 5, 10, 15, 30

3. Place

Refers to the point of sale. In every industry, catching the eye of the consumer and making it
easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a
premium for the right location. In fact, the mantra of a successful retail business is 'location, location,
location'.

21 | P a g e
 Like it sounds, place means the actual distribution center, or where a product is
sold to the customer.

For Cookania, VFI is making primary and secondary sale on its own behalf via 1500
sole distributors with their own sales force team including SMs, SOs, ASMs, DSMs,
merchandisers and order bookers. The distributor’s role is just to provide support to sales force
by providing them vehicles on their distribution in their respective area of distribution. VFI is
also exporting their products to Asian, Gulf and European countries including USA, Canada,
Russia, Sweden, UK, Portugal, West Africa, South Africa, South Korea, Afghanistan, Turkey,
Iraq, Lebanon, Jordon, Kuwait, Saudia, UAE, Yemen, Oman, Ethiopia, Somalia Uganda,
Kenya, Burundi, Tanzania, Marutias, Australia and New Zealand.

Distribution Channel

Manufacturer Distributor Wholesaler and Retailers

Distribution Strategy

Intensive Distribution strategy is adopted by VFI for cookania as it falls in FMCGs category

Steps of Calls

1) PJP
2) Shopkeepers Engagement
3) Store and Stock Check
4) Sales Call
5) Finalize Call
6) Merchandizing
7) End and Evaluation

22 | P a g e
 Follow up
Basic Capability Model of all tasks

SMs
Evening
meetings
with SO's
SOs
Objective
settings for next
day working

Task Tools

• Morning and Evening • Booking Sheets

meetings • Stock Register
• Stock Management • Tracking Sheet of
• Coverage Effective Coverage
• Range Selling • Brand Tracking Sheet
• Merchendizing • Pictures of all visited
shop

KPIs for sales Staff

 SKU per bill should be 5

 Minimum 75 to 80 shops visit daily
 Minimum 60 productive shops in a day
 Drop size should not be less than 700

4. Promotion

This refers to all the activities undertaken to make the product or service known to the
user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

Promotion involves advertising, sales promotion, and public relations. TV

commercials, Internet ads, print media and billboards (even ads features on the top of taxi cabs)
fall under the umbrella of advertising. Public relations covers the distribution of press releases
to the media while trade fairs fall in the sales promotion category.

23 | P a g e
 Advertisements
Advertisement by cookania is done in different ways like: billboard, visuals on
roadside, pamphlets & by creating catchy and memorable slogans “fun kop hula do, dubki
teatime ki, hum sabka teatime etc.
 Electronic media
Cookania is using electronic media very wisely and wide to promote its products. For
example, they have targeted the audience by purchasing some of exclusive rights on provisional
& regional channels like waseeb TV, Khyber TV etc. their latest add of TEATIME is one of
the expensive add made by volka foods international, it has been shooted in Europe and theme
song is sung by Mikka Singh and they had introduced my themes in this add.
 Social media
Cookania is actively taking part in social media promotion for its products through its
website, Facebook page and twitter account as well.
 Sponsorships
Cookania is providing sponsorships to universities colleges and event organizers on a
very large scale. They were the 2nd biggest sponsor of Pakistan Super league after HBL,
according to marketing manager of volka foods” we have spent Millions of Dollars on PSL.”
 Sales promotions
Volka is very much involved in the marketing of its star product “TEATIME” by giving
sales promotion to the retailers and wholesalers in form of 24+1 , 120 ka 100 me and incentives
to the star retailer or wholesaler.
 Free sampling
In near future, volka is going to offer free sampling promotion strategy in order to
promote its star product “TEATIME” by placing its stalls in shopping malls, schools, colleges,
roadsides, door to door visit and in universities as well.
 Public relation
Volka has good public relation in context of its sales and marketing which is helping
volka to make it product available at every shop in the town possible and is one of the less
expensive strategy of promotion.
 Celebrity endorsement
Volka has tried to catch up the customer by the way of celebrity endorsement in its
advertisements. For example, Shahid Afridi and Darren Sammy in boom boom, Aizza khan in
teatime, Hamza Ali Abbasi and Soha Ali in cake Rusk.

24 | P a g e
 Corporate social responsibility of Volka food;
Corporate social responsibility (CSR, also called corporate sustainability, sustainable business,
corporate conscience, corporate citizenship, conscious capitalism, or responsible business) is a
type of international private business self-regulation While once it was possible to describe
CSR as an internal organizational policy or a corporate ethic strategythat time has passed as
various international laws have been developed and various organizations have used their
authority to push it beyond individual or even industry-wide initiatives. While it has been
considered a form of corporate self-regulation

At Volka, we believe in conducting our business with the strongest code of ethics, while also
ensuring we play our part in contributing towards the welfare of our employees and the
community as a whole. We are proud to be involved in the following initiatives.

The targets cover the following areas:

 Flood victims accommodation and relief support.

 Earth Quake victims’ accommodation and relief support.
 Joint ventures with other companies in providing the food in shape of high energy
Biscuit.
 Regular meals to employees 3 times a day. (Breakfast, lunch & Dinner).
 Dispensary with Doctor for the employee and their families (Health and Safety).
 Regular donation on Monthly basis to orphans & widows in SOS village.
 Regular Donations to different NGO'S.
 Regular Donations for the local health-care programs.
 Regular Donations of equipment to a local school system.
 Donation / Road Making for the Proper Movement of Local Area People and their
Vehicles, Near the Factory.

Market Environment Analysis

1. Portfolio Analysis

The BCG matrix is one of the best method for a business portfolio analysis and can help
Volka foods in implementing the right investment actions.

25 | P a g e
According to Boston Consulting group Matrix Volka foods are as follows:

Star
In BCG matrix, Volka foods place two of their products “Tea time biscuit and lolly pop (licks
sour). These products have a comparatively high market share in growing industry. The market share is
increasing for both. According to marketing manager of volka foods “we do see a lot of potential in
these two products, though our company and products are comparatively new in the market”.

Cash Cow
In BCG matrix, Volka foods Confectionary item “BOOM BOOM” Bubble gum is the cash cow
for company. It has a large market share but without growth, and generates a fair amount of sale in the
local market. Ding Dong bubble gum was at top in the market before Boom Boom bubble gum. Boom
Boom bubble gum can milk the cow with strategic placement in the market.

STAR Question Mark

 Tea Time  Chocolate

 Lolly Pop

26 | P a g e
Question Mark Cash Cow Dog
Volka foods introduced silk Chocolate, Chocolate
does have low market share but the potential is quite
high against the competitor “jubilee chocolate”. They
have strong market share as compared to volka foods.  Boom Boom
They are at growing stage of life cycle. The company is in decision process either to re-launch chocolate
with some innovation, liquidate or promote to star. Volka foods still have a long way to succeed in
chocolate Industry/Department

Dog
Volka foods debuted jelly with low market share and low growth. Jelly has not gained its reputation in
the market because of poor taste. The outlook is mostly dull and the target market did not accept the
product. Revenue gained by jelly is questionable for volka.

Conclusion for BCG Matrix

Star Strategy: Volka foods should consider investing more in Tea Time and Lolly pop for boosting
the profits in future growth, and to earn more profit and market share.

Cash cow Strategy: Volka foods can use the profits to finance new growth and products in more
industries like to buy competitors share or link with established brand.

Question mark Strategy: Volka foods should invest heavily on chocolate to push them to star status,
and avoid becoming a dog.

2. SWOT Analysis in Volka food

SWOT analysis is an analytical tool used for the identification and categorization of
internal and external factors. Strengths and weaknesses in SWOT analysis are termed as
internal factors while opportunities and threats are termed as external factors.

SWOT analysis can be conducted for a situation, an organization, a project, a new

venture, a country, a nation and even individuals.

SWOT analysis definition can help organizations in their strategic planning process,
and in matching their capabilities and resources to the competitive environment in which it
carries out its operations.

27 | P a g e
 SWOT analysis is a dynamic part of an organization’s business and management
development process. It entails the collection of information pertaining to external and internal
factors which may have an impact on the organization’s evolution.

Strengths

Strengths refer to the internal characteristics which may be deemed favorable for the
organization. Our strength is our Trademark, Product and etc.

Positioning Beyond Target Market

 A wide product line

 Outstanding portfolio(plain biscuits, sandwich biscuits, cookies)
 Value Pricing
 Technological Advancement
 Product Quality and strong Distribution Network
 Easy Availability
 Proper Utilization of Resources
 Easily Affordable

Weaknesses

Weaknesses refer to the internal characteristics which may be deemed unfavorable for the
organization. Our weaknesses are our competitor.

 Lesser International exposer

 Vague impression in customers mind
 Lack of Trust
 Loyalty

Opportunities

Opportunities are external characteristics which the organization may use to its advantage. Our
opportunity is use the update innovation

28 | P a g e
Upgraded Technology

 Add more flavor

 New emerging Segments
 Changing preferences of buyers
 Varying consumption patterns of consumers
 Enhancing distribution coverage

Threats

Threats are external characteristics which may be potential sources of failure to the
organization. Our threat is security reason big fall the product and etc.

 Sever competition from EMB in terms of packaging, branding and advertising

 Availability of various foreign and local brands
 Entrance of competitors

3. PESTEL ANALYSIS:-

Pestel analysis is a tool to understand the environment in which business operates, &
the opportunities & threats that lie within it. By understanding the environment in which it
operates, it can take advantage of the opportunities & minimizing the threats. Specifically
PESTEL analysis is useful tool for understanding risks associated with markets growth or
decline, & directing business to grow.

Numerous factors determine and affect the environment of an Volka food which should
be identified, understood and analyzed by the company so it can achieve optimum performance.

If you want to know what PEST analysis is and how it can be used to gain an insight
into the environment of your organization, you need to understand what these factors represent
and how they are interdependent.

P – Political factors

29 | P a g e
E – Economic factors

S – Socio-cultural factors

T – Technological factors

E – Environment factors

L – Legal factors

A PESTEL analysis is a measurement tool, looking at all the external factors of the
organization. It is often used within a strategic SWOT analysis (strength, weaknesses,
opportunities & threats analysis).

PESTEL ANALYSIS ON VOLKA FOODS:-

POLITICAL FACTORS-

Political stability: Political stability is one of the important most factor which influence
the growth of business directly. If Political stability is higher, then it leads to perfection in
business & on the other hand if there is instability the business will have to suffer. Now the
business of volka foods international is growing as the political scenario of Pakistan is stable.

Taxation policy: Tax policy of government will affect the price of inputs & it ultimately
affect the prices of final products & it will directly affect the sale of product. Current scenario
has increased the prices of inputs because of govt. policies but still the overall impact has not
yet increased the prices of final product.

Government intervenes: This indicates that at what level the government intervenes in
the economy. If the government intervene is more sometimes it helps the organization at large
extent.

Subsidies : The subsidies which are provided by government to different organization

at different level also help it to grow at faster rate & helps the organization in reducing the
finance which is to be funded from outside & it directly reduces interest amount paid in favour
of fund raised from outside.

Trading policies: This indicates the policies related to import & export of goods and
services from different nations. If the policies are favorable more goods & services will be
imported & exported, & on the other hand if policies are unfavorable it will restricts the import

30 | P a g e
& export. Favorable policies has helped the volka foods international to make its products
available to international market. Hence making a positive change in country’s economy.

Labor law: Labor law also affect the organization, for example- child labor, a child
below 14 year of age cannot work. In factory or any hazardous place. Labor laws of Pakistan
are being accomplished at volka.

ECONOMIC FACTORS

Interest rates: Interest rate directly affect the cost of capital, if the interest rate is higher
the cost of capital will increase & if it is lower than cost of capital will be lower. This directly
affect the profit of the organization &its growth. Interest rates in recent past have increased the
cost of capital.

Tax charges: If the tax charged by the government is lower then it will reduce the
product price & if it is higher than it will increase the prices of the products. Volka foods
international comply with the tax regulations as govt. is encouraging tax payers for payment of
tax so it has brought positive change in organization. Overall tax charges on organization have
not changed.

Exchange rates: This shows that what is the exchange rate or foreign currency rate. If
exchange rate is higher more amount is paid on import of goods & if it lowers less amount is
to be paid & on the other hand if it is higher the amount received will be more & if it is lower
the amount received will be low. Exchange rate in recent times has increased so the prices of
imported ingredients have increased increasing the overall prices of inputs.

National income: National income is important factor as if affect the growth of the
organization. If per capita income is more the amount spend will be more & if it will be lower
the amount spent will be less. Unfortunately, the per capita income of Pakistan is not that much
as it should have been so the overall spending pattern is low. Keeping in mind the economic
factors volka foods is trying to make products according to peoples spending pattern.

Economic growth: Economic growth is important factor in the development of the

organization. If economy grows at a higher speed it will directly affect the growth of the
organization. Currently the economy of Pakistan is not at peak but still because of CPEC and
other investments there are speculations that the overall economy of the country will be better
hence helping the businesses to grow.

31 | P a g e
 Inflation rate: Inflation means the rise in the value of all the product in the economy, if
inflation rate is higher the cost of products will be higher & if inflation rate is lower the cost of
product will be lower. This directly affect the growth of the organization. Growth of
organization have been affected because of inflation rate in the last some months. It has affected
the overall purchasing pattern of people hence affecting the organization as well.

SOCIO – CULTURAL FACTORS

Demographics: Demographics is the study of human population in the economy. It

helps the organization to divide the markets in different segments to target a large of customers.
For Example- according to race, age, gender, family, religion, & sex. The demographics show
that most of the population of Pakistan is young.

Distribution of income: This shows that how income is distributed in the economy. It
directly affect the purchasing power of the buyers. And ultimately leads to increase or decrease
in the consumption level of the products. Income distribution in Pakistan is uneven that’s why
the purchasing power differ among individuals.

Consumerism: This indicates that a large number of options are available while
purchasing of goods to consumers, so the choice becomes easy & quality products can be
choose by consumers. So while purchasing a consumer have different choices to select product
according to his needs. As far as the products of volka are concerned, a lot of options are
available to consumers for confectionary or bakery items, hence making it easy for customers
to choose the best among them.

Education levels: Education is one of the most important factor which influence the
buying power of consumer, while selecting a particular good a consumer should know all it’s
features so it can differentiate them with another products.

Law affect social behavior: Different laws are made by the government to safe guard
the rights of consumers. For example- Consumer protection act, this law indicates that a
consumer can file a case against a seller if he finds that he is cheated. Consumer protection
courts are working in Pakistan helping the consumers as well as the organization to address the
concerns of consumers.

TECHNOLOGICAL FACTORS

32 | P a g e
 Advancement in technology: New technology helps in economizing the scale of
production, this means that new technology helps in increasing the level of production, &
reducing the costs of inputs, & maximizing the level of profits. volka is trying to use technology
to make better products and to make its products available to everyone.

Discoveries &innovation: Advancement in technology will leads to discoveries &

innovations & further improvements in technology so as to improve perfections in the
production process.

Competitive forces: Advancement in technology will also leads to competition in the

markets, more quality products will be provided to consumers to cover a large number of
market.

Automation: Change in technology will leads to automation, this means that with new
technology labor required is less as machines are automatic. All the works are done
automatically by the machines as earlier it is labor oriented. Now all the work is machine
oriented.

Research &development: This department plays a vital role in the development of the
organization. As this department always do research that what are the demand of the markets
& how to make advancements so the organization can survive in the competitive world.

ENVIRONMENTAL FACTORS

Ecological: The ecological and environment aspects such as weather, climate, &
climate changes, which may especially affect industry such as tourism, farming, & insurance.
But the overall impact of ecological factors is low because of its location and better storage
systems.

Environmental issues: Global warming is one of the major issue now-a-days as external
factor is becoming a significant issue for firms to consider. Many remedies have been taken to
reduce Global warming. Volka foods have been playing its role by producing trees and plants
to reduce global warming.

Environmental regulations: Various regulations have been declared by government to

safe guard the environment. For example- no company should through its waste in rivers and
volka comply with those regulations.

33 | P a g e
LEGAL FACTORS

Employment law: Employment law provides equal opportunities to every citizen to

work & earn his livelihood. It provides equal opportunities to every citizen. Employment and
labours laws are observed at volka.

Consumer protection: This law helps to protect the rights of consumers & he can file a
case against seller if he fined that he is cheated.

Industry-specific regulations: These laws are related to industry for example- no industry
can establish in between cities i.e. it should be outside the cities. And the location of volka says
it that it follows industry specific regulations.

4. Competitor Analysis

Competitor analysis in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors. This analysis provides both an
offensive and defensive strategic context to identify opportunities and threats. Profiling
combines all of the relevant sources of competitor analysis into one framework in the support
of efficient and effective strategy formulation, implementation, monitoring and adjustment.

Competitor analysis is an essential component of corporate strategy. It is argued that

most firms do not conduct this type of analysis systematically enough. Instead, many
enterprises operate on what is called "informal impressions, conjectures, and intuition gained
through the tidbits of information about competitors every manager continually receives." As
a result, traditional environmental scanning places many firms at risk of dangerous competitive
blindspots due to a lack of robust competitor analysis.

Competitor of cookania (Tea Time) is Sooper. Sooper was launched in 1996. Sooper is
a market leader having highest market share. Sooper is having Competitive prices and
customized packaging, Targeting General public in all over the Pakistan. Cookania make
analysis of sooper and its tea time product by its strategies, targeting and visiting stores etc.

Same like Giggly (Boom Boom) is competitor of Hilal Foods (Ding Dong).Ding Dong
is the market leader of bubble gum market having competitive prices and customized
advertisement related to the boom boom and both have same target market. But they have used
different marketing strategy to address the audience. The effectiveness of the message in the

34 | P a g e
advertisement depends on how well it has delivered the concerns of customers. Hence the
competition between them is of healthy nature.

5. Porters Five Forces

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape
every industry, and helps determine an industry's weaknesses and strengths. Frequently used
to identify an industry's structure to determine corporate strategy, Porter's model can be applied
to any segment of the economy to search for profitability and attractiveness.

The model is named after Michael E. Porter.

Threat of New Entrants/Potential Competitors:

A company's power is also affected by the force of new entrants into its market. The
less time and money it costs for a competitor to enter a company's market and be an effective
competitor, the more a company's position may be significantly weakened. An industry with
strong barriers to entry is an attractive feature for companies that would prefer to operate in a
space with fewer competitors.

35 | P a g e
 Entry barriers are relatively low for the industry: there is no consumer switching cost and
zero capital requirement. There is an increasing amount of new brands appearing in the
market with similar prices than volka products
 Volka is seen not only as a food but also as a brand. It has held a very significant market
share and loyal customers are not very likely to try a new brand.

Threat of Substitute Products:

Competitor substitutes that can be used in place of a company's products or services
pose a threat. For example, if customers rely on a company to provide a tool or service that can
be substituted with another tool or service or by performing the task manually, and if this
substitution is fairly easy and of low cost, a company's power can be weakened.

There are many kinds of Biscuits, cookies products in the market. Cookania does really
have an entirely unique flavor. People can tell the difference between cookania and others.

The Bargaining Power of Buyers:

This specifically deals with the ability customers have to drive prices down. It is
affected by how many buyers or customers a company has, how significant each customer is,
and how much it would cost a customer to switch from one company to another. The smaller
and more powerful a client base, the more power it holds.

 The individual buyer no pressure on its product

 Large retailers, have bargaining power because of the large order quantity, but the
bargaining power is lessened because of the end consumer brand loyalty.

The Bargaining Power of Suppliers:

This force addresses how easily suppliers can drive up the price of goods and services.
It is affected by the number of suppliers of key aspects of a good or service, how unique these
aspects are, and how much it would cost a company to switch from one supplier to another.
The fewer the number of suppliers, and the more a company depends upon a supplier, the more
power a supplier holds.

 The main ingredients for Cookania include carbonated wheat, salt, sugar, etc. The suppliers
are not concentrated or differentiated.

36 | P a g e
Rivalry among Existing Firms:
The importance of this force is the number of competitors and their ability to threaten
a company. The larger the number of competitors, along with the number of equivalent
products and services they offer, the lesser the power of a company. Suppliers and buyers seek
out a company's competition if they are unable to receive a suitable deal. When competitive
rivalry is low, a company has greater power to do what it wants to do to achieve higher sales
and profits.

 Currently, the main competitor is Sooper which also has a wide range of food products
under its brand. Both cookania and Sooper are the predominant healthy food
and committed heavily to sponsoring outdoor events and activities.
 There are other biscuits brands in the market that become popular, like Oreo, Zera plus
because of their unique flavors. These other brands have failed to reach the success that
Sooper or cookania have enjoyed.

Market Segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share traits such as similar interests,
needs, or locations.

Market segmentation reduces the risk of an unsuccessful or ineffective marketing campaign.

When marketers divide a market based on key characteristics and personalize their strategies
based on that information, there is a much higher chance of success than if they were to create
a generic campaign and try to implement it across all segments.

Marketers can also us segmentation to prioritize their target audiences. If segmentation shows
that some consumers would be more likely to buy a product than others, marketers can better
allocate their attention and resources.

Today, marketers are trying to identify markets they can serve best, as one company cannot
cope with the needs of the whole market with one product.

37 | P a g e
Cookania has segmented the market on the basis of:

a. Main Segment:

Quality Conscious Children and adults

b. Geographic:

Region: All over Pakistan

Density: Urban, Sub-Urban, and Rural.

c. Demographic:

Total population of Pakistan (General Public).

Age: 5-12, 12-30, if extended then 12-50.
Gender: Male and Female (Both)

d. Behavioral:

Benefits: Quality, service speed, convenience, economy.

User-status: Regular users
Usage rate: Heavy users
Readiness to buy: When informed, interested, intended to buy.
Attribute toward product: Positive
Loyalty Status: Medium as well as strong.

e. Psychographic:

Social Class: All classes (Upper uppers, Upper lowers, Working class, Middle class, Upper
middle, lower uppers, and Lower lowers).

Market Targeting:

38 | P a g e
A target market is a group of consumers or organizations most likely to buy a company’s
products or services. Because those buyers are likely to want or need a company’s offerings, it
makes the most sense for the company to focus its marketing efforts on reaching them.
Marketing to these buyers is the most effective and efficient approach. The alternative -
marketing to everyone - is inefficient and expensive.

In Market Targeting, it decides which market segments to enter in, while doing that, it must
look at three factors:

1. Segment size and growth

2. Segment structural attractiveness

3. Company’s Objectives.

After evaluating the three factors, the firm selects the segments to cater. Cookania has targeted
its segment on the basis of:
 Age5-12(Cream/Sandwich biscuits)
 Age 12-30(Plain Biscuits & Cookies), if extended then it will be 15-50 years.
Social Class: They have targeted all the social classes.

Recommendations:

 It must have to focus on the needs of children

 It has to introduce the peanuts in Khaaskhatai.
 It should have to change the thinking of the people in plain biscuits

39 | P a g e
  The new ingredients must be added like as, vitamins, flavored creams.
 It should have to target on the basis of mass markets.

Volka Food Strategy

Volka Food International is a new mega-addition to S.M Group of Industries, an

organization that has been operating successfully in the field of confectionery and bakery
products for the past 20 years.

The foundations of our business are based on ethical and moral principles that have
helped us tremendously in molding our dreams into reality, and in earning respect of the
industry.

Our aim is to meet our strategic targets that will help us become a leader in the bakery
and confectionery market, and ensure that every consumer is fully satisfied with our products.

We are proud to have multitalented, skilled professionals on our team. Highly talented
in all areas, this expert manpower has been the guiding force behind our safe and high standards
of production.

We believe in our employees and honor the devotion and sincerity they show towards
the company. We know that with the support of our team we will expand into new ventures
that will lead to progress and prosperity of not only the organization, but of the country as well.

Our strategic points are defined as given below.

 Review the vision, mission, charter, purpose, values, and historical evolution for the
organizational context.
 Identify the internal and external customers, vendors, competitors, and the trends
affecting the operation of the organizational context.
 Speak with the highest level of people within the organizational context to obtain their
perspectives, opinions, values, and needs.

40 | P a g e
 Market Success Story

Based on the legacy of excellence in confectionary, bakery and pasta, Volka Food
International is delivering healthy and appetizing food products globally. Our dedication to
succeed compels us to understand the taste preference of our customers and select the finest
recipes and ingredients to create the magic of our mouth-watering food products. Produced on
world’s best and modern technological facilities, our products are so rich in taste and quality
that it wins hearts and minds around the whole world.

We believe good teamwork comes from effective communication practices and is a

reflection of high morale and engaged employees. We show pride in our brands and promote
an optimistic environment for our team. We are driven to raise the bar on quality at every stage
of production, not only for ourselves but the food industry at large. We are committed to serve
the communities and cultures we operate in by introducing the latest technology and eco-
friendly policies to build a safer and greener tomorrow.

We have enabled Volka Food International to incorporate social and environmental

value, into the core strategy and operations. This had improved our management of business
risks and opportunities whilst enhancing long-term social and environmental sustainability.
The essential plan to incorporate the sustainability aspect into business management should be
grounded in the ethical belief of give and take to maintain a successful company in the long-
term

41 | P a g e
 Evaluation

The basic evaluation of Volka food is defined as given below.

Short analysis in terms of working environment

Volka Food International offers exciting and challenging opportunities for qualified and
exceptional crew members to further their food-service careers with excellent benefits and
exceptional advancement. We care about our employees and provide them with a relaxed and
enriching working environment.

We believe in hiring people who have talent, skills, creativity, innovation, ambition,
enthusiasm and positive thinking for continuous growth.

Recommendation of Volka food

 To reach the peak of achievement the company would have to stress on the growth of
the product Volka should also look like into other countries Asia pacific in order to
market its product globally. Another strategic plan would be a joint venture.
 The shopkeeper complain that the Volka don’t provide replacement to the expired
product so that they should provide proper replacement to the shopkeeper to enhance
the image of the company.

42 | P a g e
References:

Mr. Ishfaq (Business development Manager) VOLKA FOOD INTENATIONAL.

03017590773

https://www.volkafood.com/

https://www.scribd.com/document/326102470/Volka-food

https://www.linkedin.com/company/volka-food-international/

43 | P a g e