A

FIELD SURVEY REPORT

ON

CONSUMER BUYING BEHAVIOUR

FOR

MACARONIS

OF

BAKE PARLOR

SUBMITTED BY SUBMITTED TO

GROUP NUMBER 4 Mr Waqar Ahmed Awan

ARMY PUBLIC COLLEGE FOR MANAGEMENT SCIENCES

AFFILIATED TO NUML ISLAMABAD

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ACKNOWLEDGEMENT

A Field Survey Project Report is never successfully completed without the support

and assistance from appropriate persons. We express gratitude towards all those, who

have helped us to complete the project. We dedicate our work to disabled people who

always need our support.

We would like to thank our Professor Waqar Ahmad Awan who has afforded us the

opportunity and provided the guidance for every step. Following team members

participated in this survey:

a. Roll No 1600017 Naveed Haider Malik

b. Roll No 1600038 Zafar Masood

c. Roll No 1600011 Tanvir Ullah Qureshi

d. Roll No 1600054 Waseem Almas

e. Roll No 1600043 Usman Tariq

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EXECUTIVE SUMMARY

Field survey project has greater importance in business world. Surveys are useful

for getting a great deal of specific information. Surveys always contain questions,

interviews, and observations. Our study is about Consumer Buying Behaviour on buying

macaronis of Bake Parlor, a food product. We have resorted to observing intended

customers and noted their re-actions during buying. Our study group carried out research

in Rawalpindi zone only. We have focused on a particular segment of society with a view

to identify consumer perception, attention, information processing, understanding and

choice behaviour. The product packaging preferences of consumers, time spent and actual

choice of products in the retail stores. The product handling by store owners and usage in

consumers’ households. There are various brands of macaronis available in the market.

The market is having competitors and therefore, a consumer experience, variety of choices

to select a specific brand. It was difficult task to describe consumer buying behaviour about

macaronis because it is still considered to be an alien food and not consumed by the

Pakistani society normally, however, we have focused on specific areas where consumer

purchases this product and particularly macaronis of Bake Parlor brand.

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TABLE OF CONTENTS

SR NO. PARTICULARS PAGE NO

CHAPTER I

1. AIM AND OBJECTIVES OF STUDY 5

2.OVERVIEW OF BAKE PARLOR COMPANY, ITS BRAND

POSITIONING AND HISTORY6-11

3. COMPETITORS AND THEIR MALLAT SHARE 12-13

CHAPTER II

4. CONSUMER BUYING BEHAVIOUR 14

5. INTERNAL FACTORS 15-16

6. EXTERNAL FACTORS 17-18

7. DECISION MAKING PROCESS 19-22

CHAPTER III

8. LIST OF STORES AND SELECTION CRITERIA 23

9. CHARACTERISTICS OF A TYPICAL BUYER 23

10. OBSERVATIONS AND CONCLUSIONS 24-25

CHAPTER IV

11. ANALYSIS 26-28

CHAPTER V

12. RECOMMENDATIONS 29

13. CONCLUSION 30

CHAPTER I

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AIM AND OBJECTIVES

1. AIM. To study the buyer’s behavior to enable the marketer's to sell effectively the

Bake Parlor products.

2. OBJECTIVES

a. To identify segment of society who prefer to buy Italian Food products.

b. To identify the influence of different characteristics/features of macaronis on

consumers in different segments.(i.e) families, business persons, students

and children.

c. To find out why consumer prefer Bake Parlor macaronis, particular brand?

d. Which are the factors that influence and motivate to buy the preferred brand

food item?

e. To get a better understanding about Italian Food Market, its competitors and

their market share. Preference accorded to an item among the various kinds

of macaronis and to find out why a particular brand enjoys the status of

market Leadership.

f. Impact of decision making. To highlight the impact, advertisement on

consumers in different Age Groups, Income Groups and by professions.

g. To recommend a suitable design for an Effective Marketing Mix for its target

Customers.

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BAKE PARLOR INDUSTRY OVERVIEW

3. Bake parlor has developed a history of entrepreneurial excellence ever since its

inception in 1926 and now a days owns the largest flour mills in Karachi. Management

techniques, quality standard and passion for growth have propelled them to be at the top in

Pakistani food industry. A wide product diversification and market development strategies

have enabled the company to grow tenfold within a decade. Today they have product

portfolio includes flour; confectionary, vermicelli, a complete range of pasta items

(Macaroni, Spaghetti) and snacks etc. Company is owning all entities from flour mills to

trading companies. More than 500 employees constitute work force nationwide in plants

and corporate offices. A thriving culture of teamwork to accomplish specific tasks and co-

ordinate with other departments; this approach includes Cross-Functional Teams and

Permanent Teams. Company believes in employees as main differentiating factor,

effective application of the latest management and leadership techniques are essential for

creating value in the corporate environment. Bake parlor enjoys the privilege of being an

equal opportunity employer.

4. Market development and penetration are their key priorities. They believe that their

products portfolio demands a global audience; in this regard they have established an

Import-Export department to explore probable markets and develop positioning strategies.

To accomplish this target, their installed production capacity and expected additional

increments, make it in an ideal position to develop foreign markets while maintaining top

quality service to local consumers. They have the vision that probability of a global food

crisis in the near future and being a responsible corporate citizen are developing effective

strategies to protect consumers and maintain service standards, provided that a stable

economic situation persists. Company has the membership of ISO 9001, Snacks Food

Association (SFA), accreditation from Food and Drug Authority (FDA) of USA and utilizing

these platforms to provide quality food at the same price levels.

5. Vision of Bake Parlor. "To attain sustainable competitive advantage at a global front

by associating 'Bake Parlor' with nutritious, scrumptious and diversified food product

range."

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6. Mission. Bake Parlor offers 'more for less' by providing a diversified product range

with premium quality and extra quantity at an affordable price. We consistently monitor our

ingredients mix by analyzing our consumers eating habits so as to provide food that is

easy to cook and fun to eat. We acknowledge the global food commodity needs and

consider it our responsibility to make the most out of limited resources. We decipher

opportunities and make the most out of them. Our operational efforts are subject to

continuous improvement and our success trickles down to our customers, employees,

business partners, community and environment that is how we aim to sustain it.

7. Products

Cholesterol Free Italian Macaroni

Delicious fruity bun

Spicy sauces and Ketchups

Sumptuous Punjabi Vermicelli

Fresh white flour for hot chappatis

8. Affiliations/Partners. Associated, affiliated and/or certified with the following

organizations:

Accreditation service for certifying bodies [(ASCB (E)] Europe

http://www.ascb.co.uk/

U.S Food and Drug Administration (FDA)

http://www.fda.gov/

Snack Food Association (SFA) Europe

http://www.sfa.org/

Trade Development Authority of Pakistan (TDAP)

http://www.epb.gov.pk/v1/,formerly Export Promotion Bureau of Pakistan

Karachi Chamber of Commerce and Industry (KCCI)

Korangi Association of Trade and Industry (KATI)

http://kati.com.pk/

All Pakistan Flour Mills Association (APFMA) Sind Chapter

Bread Manufacturers Association of Pakistan.

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SEGMENTATION, TARGETING AND BRAND POSITIONING AND HISTORY

9. Products of Bake Parlor enjoy considerable number of consumers in the entire

region and the stores visited by us. The customers of Italian foods have been found from

lower middle class to elite class. Brand loyalty was evident from the visibly abundant

stacks of the product and also due to its rich healthy ingredients. Macaronis of bake parlor

is amongst the fastest growing brands in the company’s portfolio and is likely to be the

market leader with almost a major share of the market. Marketing involves to identity the

needs / wants of the consumers and fulfill them accordingly. To satisfy its customers, a

business must create a successful mix of:

The right product or service. (PRODUCT)

Sold in the right place. (PLACE)

At the right price. (PRICE)

Using the most effective forms of promotion. (PROMOTION)

(4Ps of marketing)

10. Product Range

a. Cholesterol Free Italian Macaroni

Spaghetti Box

Fancy Spaghetti

Real Egg Noodles

Lasagna

Long Macaroni Box

Macaroni Box

Fancy Macaroni (Big Elbow)

Fancy Macaroni (Ring)

Fancy Macaroni (Screw) Small Elbow

Fancy Macaroni (Werm)

Fancy Macaroni (Shell)

Biryani Macaroni

Thai Green

African Spice Macaroni

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b. Delicious fruity bun

c. Spicy sauces and Ketchups

d. Punjabi Vermicelli

e. Fresh white flour for hot chappatis

11. Product Classification

a. On Basis of Durability. Macaronis are tangible in nature and nondurable.

They can be cooked and consumed over a short period of time. Macaronis

are consumed frequently hence are purchased frequently.

b. Usage: Consumer Products. Macaronis are used by consumer for

personal, family or household use and is bought with the intension of

satisfying personal needs. It can be further classified as a convening product

as they are bought with a minimum thought and effort.

12. Positioning. It is counted in the fast food segment and is positioned as a

nuturish food. All the brands of Bake Parlor are known for its rich ingredients which is

namely targeted for children and teenagers as a tasty / healthy food that can be consumed

as lunch/dinners etc. Hence it is promoted being a healthy food as it would give a person

the energy require to perform his routine duties and so is aptly named “ABB TU SUBB HI

KHATE HAIN ”.

13. Brand. Bake Parlor has used the brand extension technique by launching a

variety of its different brands under the same food product category to cater for different

buying patterns of the consumers.

14. Packaging. Bake Parlor’s company logo is written in maroon background with

wheat grains. Logo represents vitality and purity. It attributes help in promoting Bake

Parlor’s products. Similarly, all products are packed in coloured packaged both in paper

packet and pouch, which have different colors that has a window made in it which shows

the product. As a result, it differentiates from other similar products of the competitors.

Thus it acts as a silent informer for the consumer and sellers. The variety of colors and

shapes of products attracts the attention of the consumer trickling down to help in

increasing the sales. All products / packaging style informs the consumer about the

contents / features of the product. The packaging is also done in such a way that it is

easier for wholesalers and retailers to handle the products. Varying packing also help in

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reducing price and also generate an impression on the consumers that they are getting

quantity at a reduced rate. These factors help in easy sale and marketing of the product.

15. Labeling. Labeling is the process of exhibiting important information on the

product’s package. All the Bake Parlor variants shows the ingredients of the product,

calories provide, the mating address for sending feedback / complaints if any. The

package also has an Eco mark on every packet that is manufactured.

16. Price. Pricing is one of the most important elements of the marketing mix, as it is

the only mix which generates a turnover for the company. The remaining 3P’s are the

variable cost for the company. It costs to produce and design a product. Price must

support these elements of the mix. Pricing a product too high / low could mean a loss of

sales for the company. Pricing should take into account the factors like fixed and variable

costs, competition, company objectives, proposed positioning strategies, target group and

willingness to pay. The pricing strategies are based much on what objectives the company

has set itself to achieve and Bake Parlor has adopted a number of pricing strategies:

a. Competition Pricing. They have set a price which is competitive when

compared with competitors.

b. Product Line Pricing. Priced different products within the same product

range at different price points. The better features / benefits given the greater

the consumer will pay. This form of price discrimination assists the company

in maximising turnover and profits.

c. Bundle Pricing. The company bundles a group of products at a reduced

price when providing family packs.

d. Value Pricing. They have also used value based pricing.

17. Bake Parlor is working a lot on fixing the price of its product range. It has provided

packing in various sizes and at various prices. Its macaronis ranges from Rs. 40/- to Rs.

60/-. Other products has a range from Rs. 5/- to Rs 65/-. Affordability is the key to success

and at the some time making it difficult for competitors to compete.

18. Place. Though prices vary widely from product to product, roughly a fifth of the

production cost of an item expended availability for the customers. The term 'place' deals

with various methods of transporting and storing goods and then making them available to

the customer. Getting the right product to the right place at the right time involves the

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distribution system. Distribution is the process of moving goods and services to the places

where they are needed. Channel Levels. The channel of distribution used by Bake Parlor

is intensive distribution. Products were available at all the stores we visited and a complete

range was found. Generally, stores have placed the products of Bake Parlor at a

convenient place i.e eye level is the buy level’. This type of distribution helps when

products are categorized as low involvement of the customer and where customer looks

for location convenience.

19. Promotion. Promotion includes all of the techniques that a company uses to

communicate with actual and potential buyers. An important avenue for communication is

advertising. Advertising communicates the desirability, emotional benefits and exclusive

features of the product. Bake Parlor is promoting its products through cooking shows and

by inviting Chef Mahboob in the TV shows. The ad campaign has been prepared by

Noman Habib. Costs are shared with retailers. The retailers sell more - the more Bake

Parlor is able to earn profit/sales. Company is striving for brand building through its

nationwide supply chain. Brand building is an integral part of Bake Parlor’s marketing

philosophy with continued promotions for its various brands creating loyal customers in the

process. So, they created the, MAZAY KE DEWANE HAIN AAB TO SABB HI KHATE

HAIN campaign.

COMPETITORS

20. Kolson. It is based at Karachi. Pioneer food manufacturing and processing

industries and Pasta production in Pakistan. It is offering greater choice of exclusive quality

products and high quality products with added nutritional value to its consumers. Various

brands appeal to an extraordinarily diverse array of consumers starting from youth to old

ages are in process of developing a taste for snacks. Company claims to be market leader

in Pasta products such as Spaghetti, Macaroni, Lasagne, Noodles and Vermicelli. Other

products of this company are Biscuits (Jam Hearts, Cream Hearts, Katch and Bravo, being

sandwich, crackers and traditional bakery biscuits).

21. Golden. Based at Karachi produces all range of Italian food products. This company

is also producing other products i.e. juices, chips etc.

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22. Taste Cuisine. They are new competitor as compared to others. They have

approached its customers by selecting a brand name which gives impression of complete

satisfaction. Company is expanding its sales effectively.

23. Crispo. Company is providing Italian pasta, with full range of pasta products for 40

years now. 'CRISPO PASTA', covers over 400 cities in Pakistan with a distribution network

that spans the whole country and beyond. Initially, the company focused on international

markets such as the Middle East, South-East Asia, Afghanistan and Bangladesh but when

exports began showing a steady increase, international demand gave rise to local

expansion. Following a subsequent boost in the local market, 'CRISPO PASTA' is geared

up for expansion in order to meet the growing demand for products at home as well.

Company is ensuring strict quality control with committed team management.

MARKET SHARE

24. For better comprehension of Bake Parlor, its marketing strategy, product quality,

positioning and placement, we present here a comparative analysis of its competitors. This

part of the report illustrates the market share of different companies in the pasta food

industry.

25. Market Share. The pasta food industry consists of only six major players. Out of

these companies Bake Parlor is the market leader with a share of about 37%. The market

share of all the companies in the sector due to new taste and different brands is difficult to

conclude because of tough competition among themselves, but clearly availability of Bake

Parlor across all the stores visited by us and being awarded satisfactory consumption level

by the shop owners stands tut clearly amongst its competitors.

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CHAPTER II

INFLUENCES ON CONSUMER BUYING BEHAVIOUR

WHY CONSUMERS BUY

1. Consumer purchases in order to satisfy his needs. Some of these needs are basic and

is urged by everyone (e.g., food, shelter). After needs, individual requires wants or desires.

Countries where the standard of living is very high, a large portion of the population’s

income is spent on wants and desires rather than on basic needs. However, while a

consumer is referred to is the actual buyer. While purchasing in the consumer market is

not as complex as many people are involved in a purchase decision. For example, in

planning for a family function the mother may make all arrangements and co ordinations

but others in the family may have input on their choices, taste and particular dishes etc.

Similarly, a father may purchase snacks at the grocery store but his young child may be

the one who selected it from the store shelf. So understanding consumer purchase

behavior involves not only understanding how decisions are made but also understanding

the dynamics that influence purchases.

WHAT INFLUENCES PURCHASING

2. The decision-making process for consumers is a simple affair. There are many

factors that can affect this process as a person works through the purchase decision. The

number of potential influences on consumer behaviour is limitless. However, marketers

understand the KEY influences and make efforts to satisfy the consumer.

INTERNAL INFLUENCES

Perceptual Filter

3. Perception is how one experiences the world and stored inside ones conscious or

subconscious. Oftenly, ones reactions are based on these experiences, a process of

perceptual filter. To one it is reality, though it does not mean it is an accurate reflection on

what is real. Thus, perception is the way is filter stimuli (e.g., someone talking, reading a

newspaper story) and then make some sense out of it. Perception has several steps.

Exposure – sensing a stimuli (e.g. seeing an ad)

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Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)

Awareness – assigning meaning to a stimuli (e.g., humorous ad for particular

product)

Retention – adding the meaning to one’s internal makeup (i.e., product has fun ads)

How these steps are eventually carried out depends on a person’s approach to learning.

By learning changes to previous experiences changes, which in turn may affect how they

act. For instance, one person may be able to focus very strongly on a certain

advertisement and be able to retain the information after being exposed only one time

while another person may need to be exposed to the same advertisement many a times

before he/she even recognizes what it is. Consumers are also more likely to retain

information if a person has a strong interest in the stimuli. If a person is in need of new car

they are more likely to pay attention to a new advertisement for a car while someone who

does not need a car may need to see the advertisement many times before they recognize

the brand of automobile.

Knowledge

4. Knowledge is the sum of all information known by a person. It is the facts of the

world as he/she knows it and the depth of knowledge is a function of the breadth of worldly

experiences and the strength of an individual’s long-term memory. Obviously what exists

as knowledge to an individual depends on how an individual’s perceptual filter makes

sense of the information it is exposed to.

Attitude

5. In simple terms attitude refers to what a person feels or believes about something.

Additionally, attitude may be reflected in how an individual acts based on his or her beliefs.

Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative

attitude toward a particular issue it will take considerable effort to change what they believe

to be true.

Personality

6. An individual’s personality relates to perceived personal characteristics that are

consistently exhibited, especially when one acts in the presence of others. In most, but not

in all, cases the behaviours one projects in a situation is similar to the behaviours a person

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exhibits in another situation. In this way personality is the sum of sensory experiences

others get from experiencing a person (i.e., how one talks, reacts). While one’s personality

is often interpreted by those we interact with, the person has their own vision of their

personality, called Self Concept, which may or may not be the same has how others view

us.

Lifestyle

7. This influencing factor relates to the way we live through the activities we engage in

and interests we express. In simple terms, it is what we value out of life. Lifestyle is often

determined by how we spend our time and money.

Products and services are purchased to support consumers’ lifestyles.

Roles

8. Roles represent the position we feel we should hold or others feel we should hold

when dealing in a group environment. These positions carry certain responsibilities yet it is

important to understand that some of these responsibilities may, in fact, be perceived and

not spelled out or even accepted by others. In support of their roles, consumers will make

product choices that may vary depending on which role they are assuming. As illustration,

a person who is responsible for selecting snack food for an office party his boss will attend

may choose higher quality products than he would choose when selecting snacks for his

family.

Motivation

9. Motivation relates to our desire to achieve a certain outcome. Many internal factors

can affect a customer’s desire to achieve a certain outcome but there are others also. For

instance, when it comes to making purchase decisions customers’ motivation could be

affected by such issues as financial position (e.g., Can I afford the purchase?), time

constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I

getting my money’s worth?), and perceived risk (e.g., What happens if I make a bad

decision?).

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EXTERNAL INFLUENCES

Culture

10. Consumer purchasing decisions are often affected by factors that are outside of their

control but have direct or indirect impact on how we live and what we consume. Culture

represents the behavior, beliefs and, in many cases, the way we act learned by interacting

or observing other members of society. In this way much of what we do is shared behavior,

passed along from one member of society to another. Yet culture is a broad concept that,

while of interest to marketers, is not nearly as important as understanding what occurs

within smaller groups or Sub-Cultures to which we may also belong. Sub-cultures also

have shared values but this occurs within smaller groups. For instance, sub-cultures exist

where groups share similar values in terms of ethnicity, religious beliefs, geographic

location, special interests and many others.

Group Membership

11. In addition to cultural influences, consumers belong to many other groups with

which they share certain characteristics and it may influence their purchase decisions.

Often these groups contain Opinion Leaders or others who have major influence on what

the customer purchases. Some of the basic groups we may belong to include:

a. Social Class – represents the social standing one has within a society based

on such factors such as income level, education, occupation etc.

b. Family – one’s family situation can have a strong effect on how purchase

decisions are made.

c. Reference groups – most consumers simultaneously belong to many other

groups with which they are associated or, in some cases, feel the need to

disassociate.

Purchase Situation

12. A purchase decision can be strongly affected by the situation in which people may

find themselves. In general, a situation is the circumstances a person faces when making

a purchase decision, such as the nature of their physical environment, their emotional

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state, or time constraints. Not all situations are controllable, in such a case a consumer

may not follow their normal process for making a purchase decision. For instance, if a

person needs a product quickly and a store does not carry the brand they normally

purchase, the customer may choose a competitor’s product.

TYPES OF CONSUMER PURCHASE DECISIONS

13. Consumers are faced with purchase decisions nearly every day. But not all decisions

are alike. Some decisions are more complex than others and thus require more effort by

the consumer. Other decisions are fairly routine and require little effort. In general,

consumers face four types of purchase decisions:

a. Minor New Purchase These purchases represent something new to a

consumer but in the customer’s mind it is not a very important purchase in

terms of need, money or other reasons (e.g., status within a group).

b. Minor Re-Purchase These are the most routine of all purchases and often

the consumer returns to purchase the same product without giving much

thought to other product options (i.e., consumer is brand loyalty).

c. Major New Purchase These purchases are the most difficult of all the

purchases because the product being purchased is important to the

consumer but the consumer has little or no previous experience of making

these decisions. The consumer lacks confidence in making this type of

decision often (but not always) requires the consumer to engage in an

extensive decision-making process..

d. Major Re-Purchase These purchase decisions are also important to the

consumer but he feels confident in making these decisions because of

previous experience of purchasing the similar products.

For marketers it is important to understand how consumers treat the purchase decisions. If

a company is targeting customers who feel a purchase decision is difficult (i.e., Major New

Purchase), their marketing strategy may vary greatly from a company targeting customers

who view the purchase decision as routine. In fact, the same company may face both

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situations at the same time; for some, the product is new, while other customers see the

purchase as routine. The implication of buying behaviour for marketers is that different

buying situations require different marketing efforts.

14. How Consumers Buy. This process is presented in a sequence of 5 steps as shown

below.

However, whether a consumer will actually carryout each step depends on the type of

purchase decision that is faced. For instance, for minor re-purchases the consumer may

be quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same

product) and little effort is involved in making a purchase decision. In cases of routine,

brand loyal purchases consumers may skip several steps in the purchasing process since

they know exactly what they want allowing the consumer to move quickly through the

steps. But for more complex decisions, such as Major New Purchases, the purchasing

process can extend for days, weeks, months or longer. So in presenting these steps

marketers should realize that, depending on the circumstances surrounding the purchase,

the importance of each step may vary.

Purchase Decision Steps

15. Need/Want/Desire is Recognized. In the first step the consumer has determined

that for some reason he/she is not satisfied (i.e., consumer’s perceived actual condition)

and wants to improve his/her situation (i.e., consumer’s perceived desired condition). For

instance, internal triggers, such as hunger or thirst, may tell the consumer that food or

drink is needed. External factors can also trigger consumer’s needs. Marketers are

particularly good at this through advertising; in-store displays and even the intentional use

of scent (e.g., perfume counters). At this stage the decision-making process may stall if the

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consumer is not motivated to continue (see Motivation above). However, if the consumer

does have the internal drive to satisfy the need they will continue to the next step.

16. Search for Information. Assuming consumers are motivated to satisfy his or her

need, they will next undertake a search for information on possible solutions. The sources

used to acquire this information may be as simple as remembering information from past

experience (i.e., memory) or the consumer may expend considerable effort to locate

information from outside sources (e.g., Internet search, talk with others, etc.). How much

effort the consumer directs toward searching depends on such factors as: the importance

of satisfying the need, familiarity with available solutions, and the amount of time available

to search. To appeal to consumers who are at the search stage, marketers should make

efforts to ensure consumers can locate information related to their product. For example,

for marketers whose customers rely on the Internet for information gathering, attaining high

rankings in search engines has become a critical marketing objective.

17. Evaluate Options. Consumers’ search efforts may result in a set of options from

which a choice can be made. It should be noted that there may be two levels to this stage.

At level one the consumer may create a set of possible solutions to their needs (i.e.,

product types) while at level two the consumer may be evaluating particular products (i.e.,

brands) within each solution. For example, a consumer who needs to replace a television

has multiple solutions to choose from such as plasma, LCD and CRT televisions. Within

each solution type will be multiple brands from which to choose. Marketers need to

understand how consumers evaluate product options and why some products are included

while others are not. Most importantly, marketers must determine which criteria consumers

are using in their selection of possible options and how each criterion is evaluated.

Returning to the television example, marketing tactics will be most effective when the

marketer can tailor their efforts by knowing what benefits are most important to consumers

when selecting options (e.g., picture quality, brand name, screen size, etc.) and then

determine the order of importance of each benefit.

18. Purchase. In many cases the solution chosen by the consumer is the same as the

product whose evaluation is the highest. However, this may change when it is actually time

to make the purchase. The "intended" purchase may be altered at the time of purchase for

many reasons such as: the product is out-of-stock, a competitor offers an incentive at the

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point-of-purchase (e.g., store salesperson mentions a competitor’s offer), the customer

lacks the necessary funds (e.g., credit card not working), or members of the consumer’s

reference group take a negative view of the purchase (e.g., friend is critical of purchase).

Marketers whose product is most desirable to the consumer must make sure that the

transaction goes smoothly. For example, Internet retailers have worked hard to prevent

consumers from abandoning online purchase (i.e., online shopping carts) by streamlining

the checkout process. For marketers whose product is not the consumer’s selected

product, last chance marketing efforts may be worth exploring, such as offering incentives

to store personnel to "talk up" their product at the checkout line.

19. After-Purchase Evaluation. Once the consumer has made the purchase they are

faced with an evaluation of the decision. If the product performs below the consumer’s

expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme

may result in the consumer returning the product while in less extreme situations the

consumer will retain the purchased item but may take a negative view of the product. Such

evaluations are more likely to occur in cases of expensive or highly important purchases.

To help ease the concerns consumers have with their purchase evaluation, marketers

need to be receptive and even encourage consumer contact. Customer service centers

and follow-up market research are useful tools in helping to address purchasers’ concerns.

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CHAPTER III

1. SELECTION OF STORES. In order to find the answers to questionnaire for

selected areas which are densely populated and having a blend of people from all income

levels, education, age and families can be found.

S NO MARKET/STORE LOCATION

1. METRO ISLAMABAD

2. STOP SHOP ASKARI 14

3. SHAH TAJ NEW LALAZAR

4. RAFIQ LALKURTI

5. ORO MART ADIALA

6. CSD LALKURTI

7. CITI SUPER SADAR

8. ROHAIL SATELLITE TOWN

9. SUPER STORE CHAKLALA III

10. RISING SUN WESTRIDGE

11. FINE STORE MUREE ROAD

12. QUALITY SUPER STORE ADIALA

13. AYAN BAKERS ADIALA

14. SAFEWAY SHAMSABAD

15. MART GULRAIZ TOWN

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2. CHARACTERISTICS OF A TYPICAL BUYER. During our survey we came across

many types of buyers. Buyers who were having typical buying behaviour as they are aware

of their purchasing power and needs. Therefore, these buyers consumed less time in

deciding their real requirements. However, few have shown interest in buying by going

around and reviewing /comparing various similar products. A handful number of buyers

were found looking for nutrientional values and price negotiation etc.

a. Habitual Buyers. Most of the buyers of this type were women. These

buyers were not involved in price negotiations and decision making to finalize

their intended buying. They were from middle income group and were mostly

house wives with little or less education. Probable reason for selection of

macaronis from Bake Parlor seems to be satisfying their children’s

needs/appetite. Reason of awareness seems to be influence by TV

promotional cooking programme and the packaging. While price or

comparison with similar products were not done by this group.

b. Variety Seekers. A number of families we observed were not very sure at

the time of buying macaronis. Most tended to buy Maggi noodles instead of

buying macaronis of Bake Parlor. However, a large number of buyers were

found switching over to new tastes or found pressurized to buy the

macaronis either due to their involvement in watching TV promotional

cooking show or compelled to do so for their children. A large variety within

Bake Parlor macaronis also left some buyers to make up their mind to which

taste/variety they needed.

c. Impulsive Buying . During the course of survey a large number of middle

and few from low middle class were found doing impulse buying. Macaronis

may not be a taste / lovely food item in these families but by merely finding it

attractive or due to their perception we saw that they did impulse buying.

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d. Brand Loyal Buyers. Bake Parlor is getting popular day by day which is

evident from the response from retailers. It has been only possible because

of repeated sales and ensuring quality by the company.

3. OBSERVATIONS AND CONCLUSIONS. Basing on the field survey we may

summarize conclusions as follows:-

a. Promotion of Bake Parlor is effective but not regular. An innovative promotion

addressing/influencing for urban society and a separate campaign for rural

areas is a missing link.

b. Products of Bake Parlor are stacked approriately in all the stores less local

shops of Mohallah. Most retailers placed at eye level which also is the buy

level.

c. Customer were well aware of product location / store environment and easily

approached the Bake Parlor products.

d. Generally it was observed that customers had plenty of time available and

their desire to buy this particular product was evident because of time spent

on that particular shelf.

e. Few educated and concious customers were found comparing the product

price, brand with other similar products stacked at the same shelf.

f. Behaviour of store keeper/salesmen and environment also effects the buying

process. However in this case shop keepers or salesmen were not found

keen in assisting the customers to reach to their final decisions in making the

purchases of this particular brand.

g. Serious buyers of grocery products have different economic characteristics

than casual buyers or impulsive buyers.

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h. Customers of middle class perhaps buy the macaronis to secure their

children or present it during lunch/dinners.These buyers are concious of

health/ diet as well.

i. No as the loyal to Bake Parlor is growing but their appearance or income

level has been found common to others who exhibit low degree of brand

loyalty.

j. The consumers are exposed to the product innovation and accordingly their

interest in the product has increased because of high quality and attractive

packaging.

k. A consumer perceives about product as a high quality, pure and full of

energy and feels satisfied.. His/her previous experience of the product has

an important role in building his/her perception .

l. Information about the product has not been transpired effectively because

the exposure to mass media campaign in not so regular and also not

addressing to all segments. However in this case, mere positioning in the

store has brought knowledge of this product to most of the customers.

m. A price sensitive segment consistently prefer the low price item rather than

randomly switching between high and low priced brands. Since all the similar

brands were available at compatible prices, therefore switching to other

products is easy. However those customers who consider satisfaction

because of quality will do repeated purchases and in this case, those who

are quality conscious are becoming brand loyals.

n. Generally regular customers are visiting to the selected stores and

customers have fair knowledge about location of the products and they have

sufficient time available for in-store browsing.

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CHAPTER IV

ANALYSIS

SWOT ANALYSIS (ISSUES AND OPPORTUNITIES)

1. STRENGTHS

a. Italian Foods. Bake Parlor are the market leaders of Italian food products,

which has been launched by Kolson for quite a long time and for the first time

in Pakistan.

b. Price. Company has introduced their products on a competitive price strategy.

The product is at the growth stage and possesses a huge potential.

c. Strong distribution channels . They have timely and effective distribution

network.

d. Market Leader. Bake Parlor has a market share of 37% in the market. The

product is well accepted and consequently has a tremendous take off.

e. Strong consumer perception. More and more people are now shifting to

eat pasta and macaronis.

2. WEAKNESSES

a. Promotion. Huge capital investment will be required for aggressive

promotion.

b. Competition. Low differentiation among competing brands.

3. OPPORTUNITIES. With their expansion plan and capacity. Company can enter

into product mix, which can save them from the declining phase.

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4. THREATS

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a. Already built in market for wide range of Italian food products and also other

products made of wheat.

b. People always resist buying new product and new brand.

c. Competitor’s offensive strategy especially Crispo can give them tough time.

d. Law and order situations, shortage of energy, rivalry between political groups

at Karachi can affect smooth running of business as its plant/unit is located at

Karachi.

e. Positioning product name in consumers’ mind across urban and rural areas

amongst all income groups and demographic cultures would be expensive

through promotion. This will be a major challenge to widen their profitability

MARKET RESEARCH

5. . After conducting the research, we learnt that there is a potential market for these

products as people who are quality conscious, desires to experience new tastes / cuisines,

wants to do instant cooking and lowering their dependence on bread due to health

consciousness are the target consumers which are still untapped. Apparently basic reason

is that financial outlays all competitors are not sound. Promotional ad of all competitors

including Bake Parlor are not repeated / appear on print and visual media.

6. Consumer Analysis.

a. Bake Parlor is being preferred by its target market due to its prime quality and

purity.

b. Most of the consumers perceived the products of Bake Parlor as of high

quality product; therefore they were found not to waste time on selection or

bother about the price tag.

c. Though during our survey we have experienced that store keepers have

placed the similar products within same shelf and prices had only fractional

difference.

d Variety of macaronis in shape and taste is making the real difference over the

competitors.

e. Sale period /time has been varying but interestingly mostly linked with the food

timings.

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f. Most consumers were from low and middle income level group. As far as their

education level is concerned most of them had been apparently educated.

Some had been involved critically and found reading contents etc to see the

benefits/recipe. 　

7. Marketing Mix 　 　

a. Product. All products of Bake Parlor is the largest selling brand in Rawalpindi

zon. The brand commands consumer trust as the best quality of Italian food is

available in the market.

b. Product Features. All product offered by the company had good nutritional

value and represent purity from its logo and information displayed on the

packaging.

c. Customer Benefits. Company offers a value to its consumer through its

quality and purity. This quality and purity is hall amrk of all its products.

d. Packaging. Complete range of Bake Parlor are available in the attractive

packs of in box packing and sachet packing. The brand strength of Bake Parlor

is based on flavors.

e. Price. The price competition is being faced with the others competitors .

Retail, trade prices and the discounts offered are uniform and same all over

the Pakistan

.

　

　

　

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CHAPTER V

RECOMMENDATIONS

In this chapter the team would suggest some recommendations to company to adopt more

successful operation .

a. In order to have competitive prices company should bring the prices of products to

the acceptance level of all income level. To retain its end consumers company must cut

short the cash discounts of its distributors/retailers and compensate its end consumers

b. Since a huge portion of the population live in rural areas, therefore this market may also

be tapped. Generally alein foods and tastes are not accepted in the country rural side

but company should expand their target market also towards the rural people. They

should also conduct different promotional activities in rural fairs and socially

responsible promotional activities to attract rural consumers and social awareness .

c. Because Bake Palor has variety of macaronis types to be cooked with or without

mixing with other ingradients. Company can increase their sales to bring ready to cook

macaronis also.

d. Children have a huge say in shopping so they should also promote the product to

children like maggi noodles etc.

e. Company needs to bring more attention towards promotion through media and holding

awareness campaigning, inducing public about the advatanges of eating nutritinal

foods and also focus on savings they will have in terms of money and efforts.

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CONCLUSION

The Italian food industry of Pakistan consists of a few producers in the industry. The

demand for this product is very much vulnerable in terms of pricing. Bake Parlor is

providing range of macaronis at a price which is affordable to most of the people in the

country. Macaronis are an uprising product in the country as a greater portion of the

population, both male and female, are now getting more health conscious. As a national

company Bake Parlor have done a comprehensive promotional activities since this kind of

food is not a generally eaten /taste amongst masses, has been able to penetrate the

market. Different tastes, different sizes and packaging, international standard and high

quality design, products has been highly acceptable amongst the buyers. It has attracted

the buyers and is amking the differrence. Company’s distribution process is highly efficient.

Its promotional activities, like the cooking show on TV has been a milestone in attracting a

huge number of customers.

Our study has brought forward interesting results about consumer behaviour .

Generally , a good promotional ad, rightly placing of a product and attractive price can

influence the buying behaviour, offcourse, internal factors have greater role in the decision

making process.

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ANX 'A'

TABLES

Socio Economic ClustersA B C D E

Income High Income Upper Middle Level Income

Mid Level Income

Lower Middle Income

Low Income

Education High Level of Education

Educated Slightly Less than Cluster A

Educated Slightly Less than Cluster B

Educated Slightly Less than Cluster C

Very Low Level of Literacy

Table 1 Socio Economic Cluster Segmentation

Table 2 Comparative scenario

No.

Company Market Share

1 BAKE PARLOR 3710231010100%

2 GOLDEN3 CRISPO4 KOLSON5 TASTE CUISINE

Table 3 Estimated Market Share .

Brand AVAILABILITY PRICE PROMOTIONBAKE PARLOR ALL OVER COMPATIBLE GOOD

GOLDEN ALL OVER COMPATIBLE SATISFACTORYCRISPO OCCASIONALLY LESS PRICES SATISFACTORYKOLSON LESS AVAILABLE COMPATIBLE NO AD

TASTE CUISINE LESS AVAILABLE COMPATIBLE NO AD

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ANX 'B'

QUEST IONAIRE

1. How product of Bake Parlor is stacked in the store?

2. How do customer approaches the Bake Parlor? Is customer is well aware of product

location and store environment?

3. What amount of time is available to the customer and what is desire to buy this

particular product?

4. Do customer compare the product price, brand and compare it with other similar

products?

5. How does the behaviour of store keeper/salesmen and environment effect the

buying process?

6. Do serious buyers of a grocery product have different economic characteristics than

casual buyers?

7. Who buys the macaronis and why? Describe characteristics of the buyer.

8. Are customers who exhibit a high degree of brand loyalty in a product category

different than those exhibiting less loyalty?

9. In what way are the characteristics of customers who tend to purchase a product at

a low cost per unit different from those who pay higher prices?

10. The consumers are exposed to the product innovation or consumers are not

interested in the product.

11. How does a consumer perceives about product ?

12. What is the previous experience with the product, and how does information about

the product acquired from others, and what is the level of exposure to mass media?

13. How consumer motivation and decision strategies differ between products that differ

in their level of importance or interest that they entail for the consumer.

14. How the products of Bake Parlor is best positioned.

15. Is consumer a price sensitive and behave differently from others.

16. A price sensitive segment should consistently prefer the low price item rather than

randomly switching between high and low priced brands.

17. To what extent explain store knowledge, perceived time available, and in-store

browsing the impulse buying behavior?

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Bibliography

WWW. CRISPO.PK.COM

WWW.GOLDENFOODS.PK.COM

WWW.KOLSON.PK.COM

WWW.PRIMEIRGROUPSMS..PK.COM (BAKE PARLOR)

“CONSUMER BEHAVIOR”, BY HAWKINS, BEST, CONEY, MCGRAW HILL, (7TH

EDITION)

WWW.WIKIPEDIA.COM

WWW.SNIPURL.COM

WWW.PAKISTANMBA.COM

WWW.TOCDOC.COM

WWW.IBSCDC.ORG

PRINCIPLE OF MARKETING,11E, BY PHILPH KOTLER

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