K&N’s

Chicken Spreads

Submitted by:

Ahsan Adil (9168)Mariam Zehra (8083)

Abdul Basit Sivany (7973)Ahsan Ali (10041)

Adeena Zahid (9108)

To: Mr. Samin Ahmad Date: 4th December 2011

EXECUTIVE SUMMARY

K&N’s started with providing processed chicken to people and then moved into ready to cook and cooked chicken products category.

The report is about the extension of K&N’s into chicken spreads. We aim to provide people with chicken spreads that are going to be different from those available in the market.

The report illustrates how we will launch K&N’s chicken spreads.

Company ForewordThe foundation stone of K & N’s was a small broiler farm with 1000 chicks. Khalil Sattar, the founder of K & N’s had little known that it will become so immense one day.

It started with a single-minded objective of providing better nutrition for Health and Happiness of the Nation. From livestock to the delivery of products to the consumers, there is an integrated process to ensure quality and safety at K & N’s. Their total quality management adds value to their brand name. Day by day, the need for convenience in cooking is increasing and so is the market size of ready to cook and cooked products. K & N’s is catering to this growing need very well. The distinguishing thing about them is their mass availability. They have their own outlets all over the country. Moreover they are selling through super markets and other retail stores. In addition to this, their chicken is also delivered to food-safety conscious institutions such as international restaurant chains, hotels etc. Their outlets are located in densely populated, traffic areas with retail stores around where K & N’s chicken is available. K & N’s keeps on coming with incremental innovations in its ready to cook and cooked products category. The competition in the category is rising but K & N’s stands as number one giving tough competition to other players in the industry. It is the market leader in the processed chicken and ready to cook and cooked chicken products. K & N’s chicken has been awarded for their quality repeatedly. Recently they got “Brands Icon of the year” award. They spend heavily on their marketing activities and it is referred to as “Pakistan’s favorite chicken”. They have also expanded their operations internationally where they are doing reasonably well. Being the pioneers of their category and improving continuously in providing value added products, K & N’s has a very strong presence in the market. So it’s a brand growing bigger each day!

K&N’s Mission “PROVIDING NUTRITIONOUS

PRODUCTS FOR THE HEALTH AND HAPPINESS OF THE

NATION”

K&N’s Vision “TO MAINTAIN LEADERSHIP IN

PROCESSED CHICKEN AND CHICKEN PRODUCTS IN PAKISTAN AND GROW

GLOBALLY”

Category Profile•The need for convenience is increasing day by day and life is getting busier in urban centers.

•Chicken spreads are used as a breakfast and snacking item in cities.

•Some local and international players exist in the spreads category.

•French and English are the major players.

•If K&N’s enter the chicken spread category, there are high chances of success mainly because of its established name in chicken products.

•Moreover innovation can also be brought in this category as spreads available are almost the same with little taste differentiation. A lot of substitutes are also available for the chicken spreads.

BRAND SCOPE PYRAMID

MasalasReady to cook, cooked chicken products and

chicken spreads etc

K&N’s chickenCORE

EXTENSION

STRETCH

OUT OF SCOPE Juices

K&N’S POSITIONING

ROOT STRENGTH: K&N’s is pioneer in processed chicken and frozen chicken products in Pakistan.

COMPETITIVE ENVIRONMENT: K & N’s competitive environment includes all the chicken suppliers when it comes to their processed chicken in different cuts. Considering their ready to cook and cooked products, players like MENU , Super Fresh, Mon Salwa etc care their direct competitors. Industry is growing and the competition is increasing with more players entering the market. For chicken spreads, young’s and french chicken spreads etc are direct competitors where as snacking items and breakfast items form the indirect competitive market.

THE TARGET: They target socio economic class A and B. People with hygiene and convenience as concerns for what they eat form K & N’s target market. Working women are also a primary focus due to the convenience and time-saving factor. They target people aged between 8-50 .They also target kids as they can affect the buying decision of their parents.

INSIGHTS: Women did not like cleaning chicken as it was a hassle for them. Moreover, time is an asset and life is getting busier. Numbers of working women are also increasing. There was a need for chicken products that were free from the hassle of washing, cleaning, cooking and saves time. Insight related to chicken spreads is that in chicken spreads, people seek for more chicken and less mayonnaise .

•

BENEFITS: -Affordable quality products that are widely available -Clean and safe -Time saving -Tastes perfect -Quick way to satisfy hunger at odd times and serve guests. - More chicken and less mayonnaise in chicken spreads

VALUES, BELIEFS AND PERSONALITY: Their values include wholesome goodness and delivering what they promise, that is safe and healthy chicken. They aim for providing quality with continuous improvement. K & N’s personality can be defined as sophisticated, caring and well-organized>

REASONS TO BELIEF:Their immaculate spotless outlets , consistent quality in products , hygienic packaging are the reasons to believe in the brand!

DISCRIMINATOR: K & N’s products are hygienic and safe with mass availability. Regular customers also get membership to K & N’s Way club. ESSENCE:Safe and healthy chicken that brings home happiness.

COMPETITOR ANALYSIS

DIRECT COMPETITION

•There are chicken spreads of different companies available in the market that form our direct competitive market.

•French and young’s chicken spreads are quite establishes as they have been in the market for many years.

•Sundip and dawn chicken spreads are new in the market and don’t have high awareness. But dawn has a very strong brand name so they are trying to use it as a leverage and enter new adjacent categories.• • Some more imported chicken spread brands also exists but they have a very limited availability . They are found in big super markets in the metropolitan cities and are high priced.

•Detailed analysis has been provided about the major direct competitors.

Young’s…adds tastes to life!

COMPETITOR PRODUCT SUMMARY

Young’s Young's Chicken Spread:Young's French Chicken Spread is a unique blend of high quality Young's Mayonnaise and Halal, Healthy Chicken Chunks that is full of Nutrition and Energy. Be it for Office, School or Picnic.... You can enjoy the yummy taste of chicken spread sandwiches as a full meal. Just spread over a slice of bread, chapatti or bun and savor the taste.

Available Packs:925ml, 500ml, 300ml Glass Bottles 500ml and 200ml in Aluminum Pouch Packs and 30ml sachet

Young’s…adds tastes to life! (Cont.)

STRENGTHS:• The Company have a first mover advantage in the spread

category as French Young’s Chicken Spread; the first ever commercially produced in 1989.

• Young’s enjoys tremendous Brand Leadership in Mayonnaise and Spreads category through out Pakistan with presence in various global markets.

WEAKNESSES:• Young’s needs to make use of ‘Brand Extensions’ in order to

grow. It has restricted itself in the Mayonnaise and Spreads Category only.

ENGLISH-har ghar ki lazzat

COMPETITORS PRODUCT SUMMARY

ENGLISH English Chicken Spread:a thick, creamy texture blended in oil & eggs with shredded chicken. For a unique & appetizing taste use English chicken spread.

Available Packs:275 gm and 600gm

ENGLISH-har ghar ki lazzat (Cont.)

STRENGTHS:

• Brand has a high awareness.

WEAKNESSES:

• Due to availability (distribution issues), the brand suffers.

DAWN-Spread the happiness

COMPETITORS PRODUCT SUMMARY

Dawn Dawn Mayo Chicken Spread:Dawn Mayo Chicken is a unique blend of chicken chunks and mayonnaise. It’s a perfect spread that adds extra delight to your breakfast and snacks with its nutritious qualities. Experience the new Mayo Chicken flavor, which creates an irresistible temptation in every bite.

Available Packs:480ml300ml Squeezable Bottle 900ml in Aluminum Pouch Packs

DAWN-Spread the happiness (Cont.)

STRENGTHS:

• The brand ‘Dawn’ has established its name in the minds of the consumers through Dawn Bread(started in 1981). Over the years, it has won consumers; credibility and is associated with ‘quality’ and ‘freshness’.

WEAKNESSES:

• Efforts have been very low in communicating ‘line extensions’.

SUNDIP-Naturally betterCOMPETITORS PRODUCT SUMMARY

SUNDiP SUNDiP Chicken Spread:For any perfect sandwich or salads we have ready sandwich spreads like “Chicken Spread” which makes meal time fun. Instant sandwiches for school lunch, unannounced guests, or whenever you feel like having a snack! For those whose life is on a “fast track”

Available Packs:300ml Glass Bottle

SUNDIP-Naturally better (Cont.)

STRENGTHS:

• The SUNDiP brand has positioned itself as a brand for one who enjoys good food; the “Naturally Better” choice than any other brand available in the market.

• Low priced compared to competition

WEAKNESSES:• Low quality compared to competitors• Brand has a weak image in the eyes of the consumers

COMPETITOR’S PRICINGSKU size Price

Young’s English Dawn SUNDiP

275gm - Rs130 - -

600gm - Rs242 - -

200ml Rs105 - - -

300ml Rs150 - Rs190 Rs114

480ml Rs230 - Rs300

500ml (in pouch) Rs234 - - -

925ml Rs415 - Rs520 -

COMPETITIVE POSITIONING MAP

PRICE

QUALITY

Dawn

EnglishYoung’s

SUNDiP

K&N’s We want to position K&N’s chicken spreads here as they are going to be high on quality which will justify a price higher than competition.

INDIRECT COMPETITION

We consider all the breakfast and snacking items our competition.

Cereals , frozen parathas , butter , jams etc or any thing people can have in breakfast instead of chicken spread with bread, paratha , bun or even plain roti is our competition.

Moreover sandwiches with chicken spread on it is also a common snack item in evenings and tea breaks. People often consume it along with tea. So all the items that people can consume as a quick snack instead of spreads can be regarded as an indirect competition as well for example biscuits, chips etc

Children can take spread sandwiches to school which makes all the things which can be taken to school for breaks our competition.

MARKET RESEARCH

Q.1. What comes to your mind from ‘K&N’s’?

• Chicken• Safe & Healthy chicken• Ready to eat meals• Nuggets• Kafta Kabab• Hot Tenders• Quality food• Red colour

A random sample of 600 people were selected outside K&N’s outlets and super markets where K&N’s is available in 5 different locations. The sample included housewives, working women, men and teenagers.

Convenience Safe and healthy Quality0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

30%

40%

30%

Q.2. Why do you use K&N’s products?

60%

40%

Q.3. Do you use chicken spreads?

YesNo

English French Dawn SunDip Chicken Spread

Make my own spread

Others0%5%

10%15%20%25%30%35%

30% 30%

10% 10% 10% 10%

Q.4. If yes, which of the following brands do you use?

30%

40%

10%

20%

Q.5. How frequently do you buy chicken spreads?

WeeklyMonthlyRarelyNever

Breakfast With tea As a Snack As a meal Others0%5%

10%15%20%25%30%35%40%45%

20% 20%

40%

15%5%

Q.6. When do you use chicken spreads?

30%

70%

Q.7. Are you satisfied with the existing chicken spreads in the market?

Yes No

less chicken content

lack of variety in flavours

Taste is not good

All of the above

Others0%5%

10%15%20%25%30%35%40%45% 40%

30%

10% 10% 10%

Q.8. If no, Why are you not satisfied with the current chicken spreads?

Q.10. Which variants of K&N’s chicken spreads would you like to use?

Chicken Tikka Spread

Kafta Kabab Spread

Sausage Spread

Hot Tender Spread

Others0%

10%20%30%40%50%60%70%80%90%

100%

35%20%

20%

20%

5%

95%

5%Q.9. Would you be willing to buy K&N’s chicken spread?

YesNo

30%

70%

Q.12. Where do you want K&N’s chicken spreads to be available at?

K&N's outlet only

K&N's outlet and all grocery stores as well

27%

50%

23%

300 and 600 mg

250 and 500 mg

400 and 800 mg

Q.11 Which SKU’s would you like to buy?

Important Research Findings

We got a positive response about launching K&N’s chicken spreads from the sample we choose. Key findings include :• People think of chicken as soon as K&N’s brand name is taken and they find K&N’s products safe

and healthy and convenient to use.• Chicken spreads are used by 60% of the people as other products are also available which can be

used instead of chicken spreads.• Young’s french and english are the most preferred brands in the spread category so they are

going be our major competitors and most of the people buy them on monthly basis.• Chicken spreads are most preferred as snacks• Majority of the people are not satisfied with the chicken spreads available in the market because

they don’t have enough chicken and not many flavors are available. People think chicken spreads have little differentiation. So we need to focus on innovation.

• People would like to have K&N’s products like tikka chunks, sausages , hot tenders in spreads. 250 mg and 500mg SKU’s are most preferred.

• Customers would want K&N’s spread to be available at super markets as well along with K&N’s outlets.

• OUR R&D DEPARTMENT HAS ALSO SUGGESTED THAT PACKAGING SHOULD BE IN PLASTIC JARS AND NOT POUCHES BECAUSE OUR PRODUCT HAS MORE CHICKEN AND ITS NOT LIQUIDY IN TEXTURE. GLASS BOTTLES HAVE A RISK OF BREAKING SO PLASTIC JARS WILL STAY BEST AND DISTINGUISHED.

K&N’S CHICKEN SPREADS- MARKETING MIX

Product• CATEGORY : chicken spreads (K&N’s ready –to-spread category)• BRAND : K&N’s • INGREDIENTS: minced K&N’s famous products like sausages, tikka chunks, kafta kabab and

hot tenders. Additionally mayonnaise, salt, pepper , cayenne , garlic, onion powder , mixed celery, low sodium soy sauce and dried tarragon.

• KEY ATTRIBUTES: spread with more chicken• FLAVORS : 1. sausage spread2. Tikka chunks spread3. Kafta kabab spread4. Hot tenders spreadLater we plan to launch low fat chicken spread variant etc as well.• SKU’S : 250 MG and 500 MG• SHELF LIFE : 6 months• K&N’s chicken spreads will have real chunks of K&N’s most famous products. Its texture will

not be fluid as it has more chicken.• K&N’s chicken spreads are different and tastier than the market• They can be used with bread, roti, parathas buns etc

DIFFERENCE BETWEEN K&N’S CHICKEN SPREAD AND OTHER SPREADS

K&N’S OTHERS

Price• 250 gm SKU : PKR 200• 500 gm SKU : PKR 380

• K&N ‘s has already established plants where just little addition needs to be done to produce chicken spreads and package them. So our costs are not very high but we want to make decent profits to invest behind the brand.

• We have kept our prices slightly above the competition which will be justified by our quality.

• The pricing of our product can be referred to as honor fair pricing – that is we are pricing our new product keeping in mind that our quality is better, our service at stores is good and our brand has a good imagery.

• We plan to raise the prices of our spreads in July 2012(that is when we will revise the prices of all our products . We do it every year when the annual budget comes)

Packaging• Packaging will be done in the same color theme as K&N’s other products that is

white and red.

• As our R&D department has suggested , the packaging will be done in plastic jars for convenience . The jars could also be used for storage purposes later.

• Reason for using plastic jars and not pouches is that our product is non-runny . Pouches would not have been appropriate. Moreover glass bottles have a risk of breaking so plastic jars are the best for our packaging.

• Jars will have K&N’s written on it and flavor will also be clearly stated

• Jars are going to be air tight which will make the product remain fresh and tasty for longer.

• SKU’s available will be 250 gm and 500 gm packs for now. We can later introduce more SKU’s according to research findings and demand.

Sample of how our packaging is going to be is given in following slides

250g500g

Chicken Sausage Spread

250g500g

Kafta Kabab Spread

250g 500g

Chicken Tikka Chunk Spread

250g500g

Hot Tender Spread

Place • COVERAGE: K&N’s chicken spreads will be available in all the K&N’s flagship

stores. They are also going to be made available in the super markets of the big cities.

• From the place of production, spreads will be delivered to flagship stores and super markets in K&N’s own vans.

• Separate racks will be placed in K&N’s stores for placing the chicken spreads whereas we will ensure a prominent shelf space among the competitors in the super markets.

• It will also be made available in Macro , Hyperstar etc

• Inventory will flow in according to demand from different stores.

• Businesses with whom we have strategic alliances will be given discounts.

Proposition

• THE SPREAD WITH MORE CHICKEN is going to be the main proposition as we want to highlight that our product has more chicken than all other brands in the market. We want it to be synonymous with “the spread with more chicken”

• The K&N’s over all positioning as a brand , that is “safe and healthy chicken ” will also be carried further.

• The spreads and other K&N’s products are positioned to be “for health and happiness”

Promotions• Firstly we will aim at making the target market aware that K&N’s chicken

spreads are now available and the new product’s identity should match the brand identity.

• The K&N’s chicken spreads will be advertised on tv, radio, billboards, print ads, K&N’s website, facebook etc.

• The ad for chicken spreads will be the first thing visible of K&N’s website till 1 month of the launch.

• Product placement will also be shown in cooking shows .

• Ads will promote the times when chicken spreads can be used for example breakfast , snack time and we will also promote the fact that our spreads have more chicken.

• There will be representatives at flagship stores who will inform and recommend K&N’s chicken spreads to people and make people taste them.

K&N’S CHICKEN SPREADS-SWOT ANALYSIS

SWOT ANALYSISSTRENGTHS:-under the umbrella of K&N’s which an established name in chicken products.-K&N’s own stores present in many cities from where sales are going to be very easy.-- state of the art production plants owned by K&N’s which will make production of spreads naturally good.-- no distribution issues due to K&N’s already established distribution network.--K&N’s products known for hygiene taste and safety

WEAKNESSES:-High transportation costs

OPPURTUNITIES:- We can explore the opportunity of providing people will spread with more chicken as this is a gap in the market

THREATS:-already established category and 2 major players are operating in it- young’s and english.- If threat of bird-flu arrives again, sales will go down as they go down for all chicken products.

COMMUNICATION PLAN

Budget Allocation• K&N Chicken spreads are a new product therefore, it needs a large

advertising budget to build awareness and gain customer trial.

• The budget needs to be allocated to different media, TV being allocated the largest percentage because of its large reach and effectiveness and it also reduces the cost per impression.

42%

11%21%

26%

TV Radio Print OOH

• Since K&N’s is extending the brand, its very important to carry the identity of the brand that is safe and healthy chicken – and – for health and happiness through effective communication.

• Our communication plan include the following things:TVC : TVC aired at drama and some news channels. It will highlight that our spreads

have more of chicken and we are bringing to the people K&N’s famous products in spreads now.

Proposed channels for running the ads are GEO NEWS, ARY NEWS, GEO DRAMA, ARY DRAMA, HUM TV, TV ONE , MASALA, ZAUQ and ZAIQA.

ads will run for 3 weeks, 3 times a day then for 2 more weeks, 2 times a day.

BILLBORADS : Billboards will be placed at prime locations to create awareness and to retain the

existing customers of K&Ns as billboards will be a brand recall. Billboards will be placed for four weeks initially.

PRINT ADS : Print ads will be placed in news papers like dawn and jung. Ads will also be placed in

magazines like women’s magazine, home express etc.

RADIO: Ads will also run on radio with a simple and clear message . We will play ads on famous radio

channels with high traffic like Fm 96 , Fm 101, Fm 103 and Fm 89.

INTERNET: exposure will be given to K&N’s chicken spreads on the K&N’s website . A facebook fan page

will also be created. Furthermore , we plan to do the following things:• Chicken Spread sandwiches will be given to people for tasting by placing Kiosks in different

exhibitions, malls and universities and also at our flagship stores.

• Distribution of 250mg bottles as a complimentary gift to K&N’s loyalty card holders, to encourage trial by loyal customers of K&N’s.

• Competitions enabling people to make different variety of foods with K&N’s chicken spread shall be conducted, presenting cash prizes to the winners.

• Displayed and used in cooking shows, featuring cooking experts making new dishes with K&N’s chicken spreads.

• A website directed towards the K&N’s Club members.• Features of the website:

– Chicken Spread recipes– K&N’s Chicken World Games– Upcoming events– Video/ commercial updates

• Telephone calls to leading, well known bakeries and sandwich makers asking them to use K&N’s spread product in making sandwiches, explaining its use and benefits for enhancing their services to customers.

• Sponsoring different cooking shows, and cooking competitions at girls colleges.

• Going to selected schools for making students taste K&N’s spread and encourage them to take K&N’s products regularly to school.

All of this will not only promote K&N’s new chicken spreads but it will also make the brand equity stronger!

TRADE MARKETING PLAN

• We will give retailers a margin of 4% which is more than the competition.

• TRADE SWEETENERS that are gifts etc given to retailers when the product is delivered for sales for the first time will also be given.

• Trade discount of 2% will be given if the retailer wishes to pay as soon as he receives the supply.

• If a retailer will buy more than 5 cartons, they will be given 5 jars of chicken spreads for free.

• Places where we need a very prominent shelf space for example huge super markets like Agha’s etc, margin for the retailer would be 5%. Additional margin will be given to ensure that they place our product rightly.

METRICS

Customer Metrics• We want our brand to be on the top of the customer’s minds

by capturing 25% of market share in 1 year cashing K&N’s brand name and associations with safety, hygiene and quality.

• Top of mind awareness : 40% (established K&N’s brand name will benefit us)

• We need to keep our customers satisfied and we are aiming for ZERO complaints from our customers. If any complaints about the product are received, we will look into it immediately.

Distribution & Sales targetsFirst year goals:• Primary Sales: 200,000 kg• Secondary Sales: 300,000 kg

• Value: Rs 200 million

• Distribution (initial stage) at K&Ns franchises at all urban cities (Karachi, Lahore, Islamabad, Faisalabad) and selected sub urban cities (Multan, Hyderabad, etc) after that we will expand our distribution to super markets etc.

Pricing metricsAs we know;• 250 gm SKU : PKR 200/-• 500 gm SKU : PKR 380/-

Our strategy will be to initially launch K&Ns spread in our own outlets & selected stores which will reduce our costs on trade margins.

• K&Ns is charging a premium price as compared to Youngs & English, hence it will benefit the Company’s competitive edge .

• Our price is considered using Above Competitor’s price method, since our brand image is already strong

• We will raise prices by 2012, cashing on our Brand reputation and product quality.• Methods of reducing cost further would also be considered after 6 months of

launch.

Promotion Metrics

• Promotion budget; Rs. 50 million

• This amount will be generated by premium prices charged through our premium chicken products.

• Effectiveness of the promotion will be reflected by top of the mind awareness and sales/market share.

ACTION PLAN

+

Jobs To Be Done Measurable Objectives

Distribution:Flagship Stores Launched and available by 1st Jan 2012

Leading Supermarkets Available by 15th Jan 2012

Big Cities Available in all supermarkets by 30th Jan 2012

Small Cities Available in flagship stores for first 2 months

Low fat chicken Spread Available at all flagship stores and leading supermarkets after 1 year

Promotions:

Budget Allocated Rs. 50 million total to be spent on all promotions

Website First thing visible for the 1st month on K&Ns website as an interstitial

Flagship Stores Inform and recommend chicken spreads to consumers for 2 months

Advertisements Create and launch ads in 1 month

TVC Run 3 times a day for 3 weeks then 2 times a day for next 2 weeks

Billboards Placed for 4 weeks initially

Goals:Market Share Capture 25% market share by using K&Ns brand name by 31st Dec 2012

Top of the mind awareness To be 40% by Dec 31 2012

Conclusion

We find our product innovative and we expect it to fill the gap in the market. We hope to capture the desired market share and make our launch of chicken spreads a success story. Moreover we do not want to stop here, K&N’s will keep on broadening its scope and move into adjacent categories and then further stretch its boundaries.

THANKYOU