EXECUTIVE SUMMARY

SITUATIONAL ANALYSIS: FROZEN FOOD INDUSTRY ANALYSIS Pakistan is enjoying a consumer boom. Housewives are interested in ready made products because they do not want to cook. It takes a lot of time and effort to prepare shami kabas and they have to be made in minimum quantity at home. You cannot make six kebabs but you may need only six kebabs at serving. All these food are needed for entertaining guests at home, in line with the local culture. Pakistani consumers are moving towards convenience, availability, hygiene and cost reduction. It allows people to tailor their lifestyle according to availability of products. Frozen foods will be a big part of our diet in future. Pakistan has seen a tremendous growth in frozen food spearhead by the development of ice-cream segment. The frozen food ice-cream segments market size vastly expanded as a result of two entrants: Unilever (1998) and Engro Foods (2009). These new players increased the market of frozen food considerably. During this time many small unbranded firms entered the market. The items sold included samosa, rolls and hot dogs. With the changing lifestyle patterns of the educated class of Pakistanis and the arrival of international wholesale chains (Macro, Metro) and hypermarkets (hyperstar) the market for precooked and processed foods has expanded and has a potential to expand even more. According to data monitor, the market for frozen food non-icecream segment in Pakistan increased at 6.6% between 2004 and 2009. The frozen meat products category accounted for 75.8%. Growth in the segment is reflected in the marketing budgets of the branded read-to-cook. Ready-to-eat players who gave invested heavily in advertising, for instance Menus launch budget ion 2009 was Rs.20 million. Marketing Definition: The frozen food industry in Pakistan can be classified into four categories/ segments: 1. 2. 3. Milk/water based products Meat based products: raw/ processed/ cooked, value added, chicken/beef/mutton/fish Fruits and vegetable based products

4.

Wheat based products: parantha, samosa etc

K&N falls in the second category as it has raw chicken; cooked, semi-cooked, value added chicken products to offer.

K&N COMPANY SNAPSHOT During the period 1982 to 1995, Mr. Sattar owner of K&Ns Poultry Farms, pondered with the idea of setting up a processing unit to freeze chickens and make ready-to-eat and fully cooked chicken products several times but every time he backed down, as he felt that the market was not ready for prepared chicken cuts in chilled or frozen form. The reason for this, he felt was that most consumers wanted the chicken culled in front of them to make sure its halal. Consumers were not hygiene conscious and did not mind standing around in the middle of chicken muck, fluid and blood. There was also an issue of electrification of the country. In areas where electricity was available most people had a small fridge at best. Many could not afford the expensive local freezers. Prior to 1963 there was no poultry production on a commercial level. All chicken that was available was being grown by families and Desi poultry was being produced. Owner of K&N established a small broiler farm of 1000 chicks in 1964 and called it K&Ns poultry farm. With small beginnings he began his business selling chicken meat to hotels. By 1970 commercial production increased to 3099 tons chicken. From 1964 onwards K&N expanded its production activities a feed mill was set up to produce feed for the chicken. Consequently in 1999, K&N consisted of layer and broiler breeding, feed mill, poultry processing and production of ready to cook and fully cooked chicken products. K&N now sells its products not only through its own stores but also at regular grocery and modern retail stores. They provide door to door delivery of their products to retailers and free freezers to grocery stores. K&N has also invested heavily in advertising and have built primary demand for the product by positioning it as a safe and healthy chicken. All advertising is done in-house and they do not have an advertising agency to design the TVCs or print ads. The stores show videos of breeding, rearing and processing of chicken which has helped change the mindset of consumers. It currently holds the largest share of the branded packaged chicken meat market.

Between 1197 and 2011, K&Ns has become a household name because of the read-to-cook products, which are particularly popular among children, and housewives whio want to prepare quik meals for their children or for hospitality purposes. Mr. Sattar feels that the demand for value-added is directly linked to household income.
Products: Processed chicken/ raw meat Premium Designer cuts Boneless meat RTE Chapli kabab Tender pops Haray bharay nuggets Shami kabab Hot tenders Nuggets Crouquettes Burger Patties ChickenTempura Kofta Combo wings Fun nuggets Fully cooked Seekh kabab Kafta kababs Chunks Deli line Skinless Sausages Breakfast sausage Cocktail Sausages Frankfurter sausages Hot franks Jumbo Frank sausages Cold cuts Bologna Slices Mortadella Slices Pastrami slices Pepperoni slices Smoked meats Smoked Breast fillet stripes

DELI LINE We will be discussing Deli Line of K&N only as it has been launched recently and is still struggling to capture the market. This line has failed to appeal to the Pakistani market for a number of reasons. In order to launch Deli Line as breakfast a whole mindset change is required. Its category needs to be promoted and opinion leaders need to be convinced that its healthy. PRODUCT PERSONALITY

SITUATIONAL ANALYSIS

SWOT STRENGTH: 1. Saves Time: - K&N Deli line is easy-to-make-dishes/recipes and hence, saves time. Supports active lifestyle. - Deli line is fully cooked

2.

Healthy: - A healthy option compared to traditional breakfast of oil-drenched-paratha n egg - Calorie count is available on each box which is again an advantage for people who lead health-conscious active lifestyle.

3.

Introduction of Hot Franks with green chillies makes the consumers feel included in K&Ns marketing strategy. The products are being made keeping the consumers preference in mind. Green chillies are added to minimize the bland taste. - Strong supply chain through its distribution channels. - High Quality: Feed mills that enable K&N to make their own chicken feed which ensures the food is of highest quality.

4. Hygiene: - Chicken is culled in clean hygienic areas and is frozen immediately thus protecting it from bacteria

WEAKNESSES:
1.

It appeals taste bud of a very small segment in Pakistan. The segment which has exposure to the global food trends and is acclimatized with various tastes. Basically, masses find K&N bland. sausages.

2. Pakistani consumer cannot relate to the product names e.g. bologna, Frankfurter

3.

It caters to a niche in terms of pricing i.e. not everybody can afford K&Ns products.

4. K&Ns Deli line was introduced in 2010 but it is still in its introductory stage which is

worrisome.
5. Brand awareness is quite less. it is related to product category awareness; marketing

efforts by K&Ns hasnt been able to persuade consumers or induced trial.

6. The current communication strategy focuses on routine ko de protein which

completely ignores the primary advantage of deli-line which is quick & healthy food.

OPPORTUNITIES:
1.

The need gap exists: Family structure is increasingly shifting from joint to nuclear. And double-income households are increasing. These households tend to be health-conscious and can afford the deli line products. In all, modern families are looking for a healthy and efficient alternative to breakfast.

2.

No direct competitors in market: They dont have many direct competitors as far as Deli line is concerned. There are few unbranded sausages available in retail outlets but they dont have the advantage of having big marketing departments i.e. they cant communicate their message to consumers.

THREATS: 1. Product category awareness is needed: K&Ns is trying to shift the paradigm from traditional breakfast to the protein-rich Deli line. Breaking the engraved tradition of anda-paratha, bread and butter is near to impossible. 2. Diseases spread amongst broiler chickens. 3. Consumers consider frozen/packaged food unhealthy. Although K&Ns tagline is safe and healthy chicken; they havent yet been able to change the mindset of consumers. 4. Political instability and electricity issues in Pakistan

COMPETITIVE ENVIRONMENT ANALYSIS DIRECT COMPETITORS

1) Traditional breakfast

Major competition for Deli Line is home cooked traditional food as it is a part of our culture. Breaking that tradition and moving towards Deli Line which is an unconventional option of breakfast is a difficult task. Traditional breakfast includes: - Bread, butter, jam - Egg, paratha - Halwa poori

2) Unbranded Sausages, cold cuts and smoked meat Branded competition of Deli Line does not exist, several small entrants are making sausages, cold cuts and smoked meat but they are reltively unknown. Deli Line enjoys the backing of a strong well established brand name, however up till now it has not been able to bank on it. 3) Breakfast cafes - Espresso - Chatkharey - Dunkin Donuts
INDIRECT COMPETITORS

PK meat by PK foods PK meat is the only strong competitor making sausages. Its two variants are available in the market. However these sausages are not positioned as breakfast food.

MARKET SHARE

The size of the current chicken based, ready to eat/ ready to fry market for all brands is about Rs300 million.

Year 1999 1997 2009

Company K&N Mon Salwa Seasons Foods

Brand Name and Market Share Nationally 75% 5% 10%

Geographic coverage National Regional Regional

2011 2011 1989

Dawn Foods PK Foods Icepac Ltd Others

5% 1% 4% 5%

Regional Regional Regional Local

Deli Lines market share is almost non-existent and therefore we need to revitalize the ad. \
MARKET GAP:

None of the frozen food companies is offering Deli line i.e. fully cooked products like bologna, cold meat or sausages. Consumers who are ready to accept this modern concept of breakfast has a need to fulfill. So, K&Ns Deli line can fulfill this need without any direct competition. Acceptance of Deli Line (sausages, salami etc) amongst the masses

BUYER ANALYSIS

BRAND LOYALTY (K&NS DELI LINE)

K&Ns enjoys a strong customer base and consumers have high brand loyalty for K&Ns product but Deli line has very low brand awareness and hence, quite low brand loyalty. Consumers prefer egg and paratha (traditional breakfast) over sausages, cold cuts and smoked meat. We need to induce trial to reach their taste buds. trial can only take place if consumer is confident about WHAT theyll do with the product once they buy it. Consumers, in most cases arent even aware of these products and its usage. the opinion leader for food-related purchases in a household is the mother. A Pakistani mother (even the one who can afford the product) needs to be educated about Deli line and its usage. She doesnt care if sausages are skinned or not because she isnt aware of its advantage and not many will log onto the website to get to know it. The perception that frozen food is not healthy has to be broken. Deli line is to be promoted as a healthy and easy-to-serve food.
EXISTING MARKET OF D ELI LINE Demographics

K&Ns Deli line demographics are youngsters, families and housewives. Buyers age range from 20+ and above. Socio economic class they belong to A+ to B+. Psychographics The consumer insights are that working people skip breakfast because they are on time crunch. Traditional breakfast more filling and frozen food is not filling enough. Deli lines current TVCs focus on Active lifestyle and protein intake. Its trying to capture minds, rather stomachs of active people.

Consumer profile Mr and Mrs Emmad: who exercise, work, look after their children and then take time out for themselves.

CRITICAL ANALYSIS OF PREVIOUS TVC

The TVC is highlighting a family who is living a safe and active lifestyle. A mother is shown during morning time and the daily routine of this family is shown. Both the kids are active and wining their respective sports games. Grandfather is healthy going for walk in the morning. Husband is also very active and enthusiastic about kids wining the games. The lady of the house is shown at the end making healthy breakfast from K & Ns deli line product. Big idea: Active and healthy lifestyle Campaign Idea: A family living a healthy active life as they use K& Ns deli line products and its fulfilling the requirements of a healthy daily ingredients intake Primary Target Audience: Families and housewifes belonging to SEC A+, A, A- and B+ Consumer Insight:

Packaged food is not considered healthy Deli line is considered bland Sausages and cold cuts are considered snacks rather than breakfast items Traditional breakfast considered to be more filling

Secondary Males (bachelors) Young working women females Single parents

Brand Personality Deli line is safe, active, hygienic, and health conscious Brand Positioning Deli line positioning is done on the basis of a brand that gives proper protein intake and helps in living an active lifestyle Rational Appeal

K& Ns Brand Name Logo Deli line products shown in the ad which are ready to eat and less time consuming

Emotional Appeal Deli line Tvc is focusing on the love and togetherness of family and the bond which they share with each other. The happy and joyous expression on the faces of parents when their kids win the games and the feeling of healthy lifestyle is being portrayed to the target audience. Creative Strategy: Slice of life strategy is used in this TVC of deli line. Target audience could very well relate to the chunk of life shown in the ad. Opinions-Suggestions

Tvc has very well portrayed the concept of healthy active lifestyle Deli line products shown in the ad look very tempting and playing on the sensory creative strategy Tvc didnt focus on the comparison between traditional and deli line breakfast No clear cut message on usage of deli line product for breakfast in comparison to the oily traditional breakfast

OUR PROPOSAL

PRIMARY AIM KEY OBJECTIVES:

1. Product category awareness: At the moment packaged / frozen food market for breakfast doesnt exist. Also nontraditional food like sausages, cold cuts is not accepted by the masses as breakfast items. Most consider it a snack. People are not aware of avalability of sausages, cold cuts, and frozen meat.

2. To replace Deli Line with traditional breakfast: Breakfast in Pakistan consists of traditional items like parantha with fried egg, malai, halwa puri, lassi, nihaari, paaye. These traditions go back to even before partition are not easy to part with. Most mothers take pride in making these.

3. To position it as healthy nutritious food: The perception of frozen food is that its unhealthy and contains preservatives. We need to position it as healthy food as compared to traditonal food which is oily and fattening. Deli Line is light on weight and is full of proteins. 4. To highlight its convenience and low preparation time: Traditional breakfast takes time to make and requires a lot of time. Many families are dual income and have busy lifestyles and thus do not have the time to indulge in this exercise. Deli line on the other hand is easy to make and saves up on time. 5. To induce trials: The campaign should induce trials amongst the target market to increase its level of acceptance and awareness. Secondary Objectives:

To increase purchase of Deli Line by 20% in one year.

6. ENTER THE WEEKLY GROCERY LIST OF OUR TARGETED HOUSEHOLDS.

PROPOSED BUDGET

Print media T.V. Radio OOH Advertising Internet

TOTAL BUDGET: REASONS: 1.

10% 50% 15% 20% 5%

We have a slightly larger budget for print media because our product is on introductory stage and we need to provide users with information: recipes, usage, product names. Bologna and Mortadella are so difficult to pronounce and remember for an average Pakistani that we need to provide them in print. Then they can refer back to it when needed. A TVC on the other hand cannot be paused. Television amounts for the largest percentage because its a most effective medium. Deli lines beautiful products would have a sensory appeal on TV. Also, weve proposed placement in various cooking shows and drama serials. Our target audience includes youth (20-35) and theyre mostly on internet so we have that in our media mix too but since, its inexpensive, it has a small share of total

2.

3.

BULLS EYE

Market Size:
In terms of population our market size includes people living in urban areas. This constitutes 36% (in 2008) of the total population of Pakistan.

PRIMARY TA FOR THIS CAMPAIGN

Gender: Females Age: 20 50 Social Class: SEC A+ to BProfessions: students, business women, employees, house wives and mother-in-laws Reason for choosing this market: They have the greatest buying power compared to SEC C and D. Female between the ages of 20-40 is enthusiastic and is ready to try out new products. Females understand the importance of tradition and heritage as well. They are the best individuals who are capable of bringing about change together with carrying forward their heritage. Hence, they are not repelled to the idea of Deli line. They do grocery shopping and even if they dont they have a say in the decision making process. Young girls above twenty can easily influence the minds of their mothers. According to a survey mothers said they include their daughters in the decision-making process. So it is their mind set which we need to change. Our chosen target market is a trend-setter and people in SEC C and D are followers. On the cost of sounding impolite, Pakistanis are basically wannabees and this trait of Pakistanis are going to be advantageous for us. We only need to design a plan to creating brand awareness and create brand image in our target market, the rest will simply follow when we provide them our brand through distribution and effective pricing strategy. People belonging to SEC A+ to B are usually aware of the importance of breakfast. They realize its importance and have a need; we just need to provide them a way to satisfy it.

Demographics

Age: 20-30 Gender: Female SEC: A + to B Psychological:

Key problems: The market for sausages, cold cuts does not exist at the moment. It is not considered breakfast. The category awareness of these as breakfast is close to non-existent. Opinion leaders believe it is the ultimate nutrition for their family and this is ingrained in our culture. The market for traditional food is very strong. Specific habits: The target market is old enough to make decisions. They are educated and can influence choice of their parents. Due to their work/ studies they are unable to have proper breakfast. Many are healthy conscious and want to avoid oily fattening food. They like hanging out with friends and influence each others opinions.
SECONDRY TA Male Population below 20 and more than 40 Restaurants

MESSAGE STRATEGY PROPOSITION:

USP: To provide nutritious, non-traditional food for the health conscious which is light on weight and light on time. Rational positioning:

Packaging Product usage Use of color Red Logo Tag Line - Deli Line: Making traditions Website

Emotional positioning Relationships with friends and family, changing dynamics of family, daughters say in choice of food. FINALIZED MESSAGE:

K&Ns Deli lineMAKING TRADITIONS

Tagline: MAKING TRADITIONS!
Reason: The whole campaign will focus on making new traditions for breakfast. We need to break through the deeply engraved tradition of Pakistani breakfast (egg, bread, paratha, halwapuri) and introduce them to the efficient and healthy world of Deli Line.
CREATIVE STRATEGY THE EQUITIES

Platform: Mother-Daughter relationship and bonding amongst friends. Peer pressure plays a large role on consumers buying behaviour; once a close friend recommends a product/brand it automatically enters your life style. Also well use the influence young girls have on their mothers as far as household decisions are concerned. These are the two insights that will act as a platform for our message. Physical Elements

Deli line is protein-rich vacuum packaging makes the product bacteria-free. Packets are easy to store, use and re-use. K&Ns distribution is effective.

Emotional Elements:

leverage K&Ns (parent brands) brand equity to the Deli line pull the heartstrings of opinion leader (mothers) via their daughters Emphasis on value of time in the lifestyle of Deli Lines consumer.

Creative strategy:
1. slice-of-life 2. problem-solving

Brand positioning: Association of consumers with K&Ns: 1. Its healthy because it breeds and feeds its own chicken. 2. Its convenient 3. The taste appeals Asian taste buds as far as their products like Seekh kebab and chicken Tikka chunks are considered. Associations we want to create: 1. Deli line is as healthy and convenient as rest of K&Ns products. 2. A breakfast should be simple, healthy; there is no need for oily eggs sprinkled with heavy dose of pepper and salt. 3. Breakfast should be Easy-to-make since everyone is in a hurry to reach their jobs, school or university. And Deli line gives exactly that. 4. On-the-go breakfast is more convenient for people with active lifestyle. 5. So make new traditions in breakfast. Media monitoring: PK meat is the only brand offering sausages but their media presence is always based on their chicken products and not sausages. Also they arent placing their sausages in breakfast category so Deli line doesnt need to compete with it.

MEDIA STRATEGY

ATL:

Terrestrial: TVCs wont be on-aired on PTV or ATV because their target audience doesnt match our target audience. Reach is high, slots are quite expensive but the message will go to waste and not hit bulls-eye. Cable: For mothers: Hum TV, ARY Digital, Zauq, Zaiqa, Geo

For youth: HBO, Style 360 Radio Radioactive 96 FM City FM 89 Apna Karachi 107 (since it targets Pakistans metropolis) Radio One FM91 Print Dailies: Dawn, Express Tribune, Daily Times, The News Weeklies: Images, Tribune Magazine, Sunday Mag Monthlies: Libaas, Humsay

MEDIA VEHICLES

MEDIA Tv

Vehicle Style 360 ARY Digital HUM TV Ary Zauq Hbo Masala Tv Business Plus DAWN

Placement Fashion Shows

TIMING Primetime

Drama Hours

Prime Time

Front page Front & back page Front page and back page alternatively Front page

News papers Express Tribune Magazines Libaas

Week days and Sundays (Images) Week days & Sundays Its a weekly youth magazine Monthly

Radio

FM 91

Mon-Thurs (5:00pm-8:00pm)

FM 96

Half Hourly Time Check

Mon-Thurs (10:00pm-1:00am) Mon(8pm-9pm)

FM 89

FM 107

K &Ns Deli Line Sponsored Show Main roads, Foot paths, Building roofs, universities, shopping malls, restaurants

Sun-Fri (10:00-11:00 pm) 3- 6 months

Billboards

Internet

Shahra-e-faisal, Hyderi market, Sea View, Defence, Clifton, Gulshan chowrangee Famous Cafs Facebook

On the profiles of youngsters

There would be ad for FB and a constant group A facebook game Of K&Ns Deli Line

TV shows: 1. Food diaries on Masala TV (8:00-9:00): its a cooking show focusing on western cuisine. Its TA matches with our TA. Problem: at this time a large portion of TA is watching their favorite drama as well (since theyve become seven days a week) 2. Dramas on-aired on Geo Entertainment and HUM TV from 8:00-9:00 3. Working women: Tammy Haq show on business plus

RADIO

Placement: When the TVC is launched; all the above mentioned morning drive-time shows can be sponsored one by one for one week. RJs will talk of breakfast; encourage users to go on website and check recipes out and highlight the importance of breakfast. This way we will constantly bombard the same message in consumers mind for one month. BTL

1. Kiosks at supermarkets like Aghas, Hyperstar and Naheed Super store. Also at airports for early morning flights.

2. Event based: Calendar: Hostel-time(Attacking university-goers): August: students are leaving for their hostels and university at this time. They either eat food or rely on frozen-food (fully cooked), especially for breakfast, because students dont have much time in morning. Also, microwaves are usually present in hostels so heating Frankfurter sausages for two minutes isnt an issue.

Promotion at this time will also hit the other general university students as they also face same dilemma day-in and day-out.

Non-calendar:

Break-fest

OOH:

Conventional: Billboards Pillar wrappings Sign-posts in KDA-I, Defence and Clifton Transit:

Entry/Exit point- Ads/stalls at Airports Moving vehicle-Daewoo buses running from Lahore to other northern areas (it has students from LUMS, Punjab University, Kinnaird, King Edward Medical college)

Creative considerations: Direct competitors: Indirect Competitors

Timeline: one month on radio Mandatory: Logo, K&Ns and Deli line brand name, Mentioning of Halal and frozen food

BRAINSTORMING NEGATIVES OF THE PRODUCT CATEGORY Frozen food isnt healthy Culture of making fresh food

POSITIVES OF THE PRODUCT CATEGORY Quick to make Convenient Healthy because it locks the nutrition value

NEGATIVES OF TRADITIONAL FOOD Oily Takes time to make Youth doesnt like its taste Fattening

DELI LINE POSITIVES Quick to make Healthier A lot of variety available, can be made in a number of ways Easier to make directions need to be made Taste consistent

DELI LINE NEGATIVES Negative perception of frozen food Traditional breakfast is ingrained in our culture

Awareness of product category doesnt exist. Even health-conscious, busy people go for bread, jam and butter to make breakfast light and fast.

IMC PLAN BIG IDEA:

Healthy breakfast for achievers.

CAMPAIGN IDEA:

Breaking old traditions and making new ones: The objective is to counter the negative notions consumers have regarding product category. first, we need to create product category awareness. secondly, encourage consumers to try product. thirdly, exhibit various usages of product. all these objectives will be achieved in a six month/year long campaign. Later on (once we reach growth), we can move onto widening the target audience from youth to older generation and males.
CHOSEN TARGET AUDIENCE FROM CREATIVE BRIEF:

Primary TA: Age: 20 to 30 SEC: A + to BGender: Female SECONDRY TA

Male Population below 20 and more than 40. Restaurants

ADVERTISING: ATL:

1. Teaser regarding breakfast: What did you have for breakfast? 2. TVC countering negatives of brand and product category will run. BTL:

Purpose: enabling potential consumers to experience the brand and make Deli line talk of town.
1. Stalls in large supermarkets: K&Ns workers would make recipes, using deli line, and

serve them to consumers. this will serve to purposes: induce trial and demonstrate product usage. then they will share their experience with friends and family. THIS will result in creating buzz word and Deli line hopefully would become talk-of-town.

2. serving breakfast(in traditional dishes/silver-colored-thaals) at breakfast-time from

door to door in areas where our target audience resides. This will also serve the purpose of conveying message: Deli line is not breaking traditions but making new ones.

SALES PROMOTION:

1. Kiosks: An area designed as kitchen counter with characters of our TVC sitting there

and making breakfast (acting). They will help the adopter choose products and explain them how to use it. (will this come under direct selling?) help them in making new traditions.

2. Free recipe books: the idea of Deli line is fairly novel in our society; large percentage

of our target audience wouldnt be aware of its usage and wont even accept it publicly. Hence, use recipe books to counter their fears.

BRAND PUBLICITY:

Publish an article in different magazines, asking sports/television celebrities about their breakfast habits. They are role models for many and if even fifty percent of them use products that Deli line is providing then our purpose will be served. One can imagine a crash landing of young girls at K&Ns outlet on Monday, if Fawad Khan, in Sunday Tribune Magazine, reveals he eats a Bologna sandwich for breakfast.