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MARKETING STRATEGY

KURLEEZ
by

komal shakil

on 15 December 2013

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Transcript of MARKETING STRATEGY

KURLEEZ- MARKETING PRESENTATION
SWOT ANALYSIS
AND
OBJECTIVES AND ISSUES

MARKETING STRATEGY
POSITIONING
SALES STRATEGY
SALES DEPARTMENT
PRICING STRATEGY
DISTRIBUTION STRATEGY
MARKETING PROMOTION
POSITIONING
For Positioning, they use the caption “Its sassy and tempting flavors will always leave you hungry for more” and “Ridges have never been so good.”
The caption line varies from flavor to flavor but the main caption line is the same on every flavor.

TAG LINE
“Kurleez ka flavor hai sab sai aala!”
The company uses the Parent brand name i.e. Snackcity followed by the brand of potato chips i.e. Kurleez.
This is evolutionary positioning. They have been using this tag line since the product’s inception. The tag line denotes that the flavors of Kurleez are the best among the competitors
BRAND LOGO
There are two logos on the packet.
One is the logo of Snackcity which is in blue and yellow color.
The logo of kurleez is in large font stretching on the whole packet in yellow color with indigo background.
PRICING STRATEGY
Pricing strategy practiced for kurleez is value based pricing.

VALUE BASED PRICING
Which sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices
DISTRIBUTION STRATEGY
Distribution strategy used by the company is push strategy.
PUSH STRATEGY
Retailer and distributors are given discounts so that they would buy more and sell more.

you are not asking customers to buy but retailer to sell.
PROMOTION STRATEGY
Promotion strategies include
1. BTL- below the line
2. Print
3. OOH- out of home
4. Ground Activation activities
5. POSM – Stands, Mobile, Gandola, Buntings, posters
6. tv
Snackcity does BTL activities in schools and colleges across the country. They use branding activity and activation activity.
BTL
POINTS OF SALES MARKETING POSM
Snackcity uses stands, gondola, buntings, and posters at the retail shops. This strategy has been very useful for the company.

Kurleez uses Out of House Billboards (OOH) frequently which are located on busy roads of main cities. Following billboard has been seen a lot this year:

OUT OF HOUSE- OOH
PRINT AND RADIO
Kurleez has been targeting its market through its TV commercials. Since its inception, it has played commercials depicting variety of flavors. The brand ambassadors used in the commercials are Vj Saira and Wasim Akram.
TV COMMERCIAL
The budget of Advertisements and promotions is fixed to a certain percentage of profit. Following are the budget for the 3 years:
• 2010-2011: 60 million
• 2011-2012: 80 million
• 2012-2013: 95 million

ADVERTISING BUDGET
PRODUCT DECISION
The strategy they use towards their retailers is push strategy. They give trade offers to the retailers to make the purchasing of the product worthwhile.

1. One of their most popular trade offers is ´baara pai aik´ (1 on 12) offer. In this case, if the retailer buys 12 packets together, he gets the 13th packet for free. This gives an incentive to earn more profit.

2• They give their snackcity chips stand to the retailers for Rs. 7000

3• They also purchase shelve space in supermarkets such as Naheed and Imtiaz etc. The price of a supermarket to shelf each SKU is Rs. 25000 while the price of Naheed to shelf each SKU is Rs. 70000.


STRATEGY TOWARDS RETAILER
1.BRAND LOGO
2.BRAND NAME
3.BRAND PACKAGING
Snackcity uses traditional Laminated Packaging Material to pack kurleez. This material is used to pack chips across the world and keeps the chips air tight, keeps the cost of packing low as well.
BRAND PACKAGING
o 17 grams
o 27 grams
o 48 grams
o 86 grams
VARIETY
SIZE
Also, there is a vignette effect on the packaging which makes the packet glow and seems very attractive and easily noticeable among the other chips brand on the shelves.
BRAND NAME
Kurleez uses print media in many newspapers such as Dawn, Jang etc. However this mean of promotion has not been that effective and is now avoided
Kurleez jingle has been played frequently on radio especially between cricket matches
MARKET RESEARCH
BUDGET
PRODUCT DECISION
MARKET RESEARCH
The R&D department of Ismail Industries is very proactive. However, the research conducted by the department is not on which customer segment to target but rather on what type of taste and preferences does the consumer want with the product.
SALES STRATEGY
The company has three brands related to confectionery items, biscuits and other snacks. Following are their brands:

CandyLand
Bisconni
SnackCity

Food Brands of Ismail Industries
The total consumption of potato chips is approximately 5000 tons out of which the share of branded chips is approximately 3000 tons and 2000 tons of unbranded chips.
POTATO CHIPS INDUSTRY
OF PAKISTAN

Snack city entered the market with its debut product, Kurleez, a new range of ridged potato chips available in five flavors. These flavors are Special Salted, Spicy Mint, Mirch Masala, Barbeque Blast and Catchy Ketchup.

In 2010, Snack city changed the packing of Kurleez and made it more attractive in order to capture the segmented markets.
Introduction to Kurleez
INTRODUCTION TO KURLEEZ
Snack city entered the market with its debut product, Kurleez, a new range of ridged potato chips available in five flavors. These flavors are Special Salted, Spicy Mint, Mirch Masala, Barbeque Blast and Catchy Ketchup.

In 2010, Snack city changed the packing of Kurleez and made it more attractive in order to capture the segmented markets.
1.Special Salt: Those who prefer the traditional taste of chips with traditional salt seasoning.

2.Mirch Masala: Those who prefer spice with whatever they eat.

3.Catchy Ketchup: Those who prefer sweetening and ketchup to go with, especially kids.

4.Sour Cream and Onion: Those who prefer strong and lasting taste.

5.Salt & Pepper: Those who prefer blend of traditional and spice.
FLAVORS OF KURLEEZ
The target market of Kurleez is kids and teenagers. However, chips are that kind of product which cannot be resisted and is loved by people of all age. Kurleez has different flavors that can be targeted towards the following:

TARGET MARKET
The market segmentation has been done on the following basis:
SEGMENTATION
In demographic, they have segmented the market according to the age of the consumers. The customers of Kurleez are from the age of 7 to 18 years. However,
the product is seen being used by people of more age as chips is a product that cannot be resisted.

Kurleez has been segmented in the following economic classification:
1.SEC A: This is the upper class in which product like Pringles are serving the market.
However, Snackcity believes that Kurleez is catering to this market too.
The jumbo pack of kurleez was specially launched for this type of economic classification.

2.SEC B: This class is a major contender of Kurleez.
Different Packing ranging from Rs. 5 till Rs. 40 all are segmented towards this market.

3.SEC C: This class of market is catered by unbranded chips.
However, Kurleez has a Rs. 5 packing which is a bargain for quality against unbranded chips.
SOCIO ECONOMIC CLASSIFICATION(SEC):
Another way of segmenting the market is by cities. Snackcity has divided it into 5 zones that are Karachi, Lahore, Islamabad, Rawalpindi, and Faisalabad.These zones also cover the surrounding areas of the cities as well. Snackcity may not be able to reach rural areas but sub-urban areas are in reach and fall into the respective cities.

GEOGRAPHIC
COMPETITIVE REVIEW
Following are competitors of kurleez
DISTRIBUTION REVIEW
1.8 to 10 distributors in Karachi (area wise)

2.350 to 400 distributors of SnackCity

Ismail Industries Ltd

Jellies- Candies- Lollipops- Chocolates- Toffees-
Chew toffees-Marshmallows

CANDY LAND
BISCONNI
SNACKCITY
Kurleez- Chillz-Nimco- Peanuts

Biscuits and cookies

STRENGTH:
Experience
Brand promotion
Range
Taste
WEAKNESS:
Availability of Raw material and season
Quality
Brand Loyalty
Distribution

OPPORTUNITIES:
Changing life styles
Emerging Pakistan
Brand awareness
Availability in smaller towns
THREATS:
Government legislation
Energy Constraint
Easy to enter market

SWOT ANALYSIS
ISSUES
DISTRIBUTION:
Their product is not distributed in many small towns and cities as there are no distributors who supply into those cities and towns. Many people in those small towns are not aware of this product.

OBJECTIVES AND ISSUES
FOLLOWING ARE THE COMPANY'S OBJECTIVES AND ISSUES
ESTABLISH FLAVORS
Out of four flavors only two flavors hit success.Which are catchy Ketchup and mirch masala. The other three flavors salt & black pepper, salty, sour cream & onion do not have much sale.
AVAILABILITY OF RAW MATERIAL
Availability of raw material and season is one the issue faced too. As potatoes are a seasonal vegetable and due to this their supply chain depends irregular in monsoon.
OBJECTIVES
PLAIN CHIPS:
The main objective of kurleez is to provide high quality potato crisps in affordable range all over Pakistan. The achieved a great success in crinkle chips. Now their recent objective is to launch plain chips. Lays is the main competitor of kurleez and they are famous because of their plain chips.

They are focusing to establish jumbo packs and party packs more as they are recommended for parties and family events and have more demand then the regular packet of chips.

JUMBO & PARTY PACKS:
Their sales are dependent on two flavors which are Catchy Ketchup & Mirch Masala. Their aim is to bring the three flavors Salty, salt & black pepper and Sour onion n cream into the market and establish sales for it. Kurleez is available in most of the cities all over Pakistan but it is not available in few smaller towns. Their one of the target is the availability of kurleez in every small town, cities etc and stores like metro, makro, imtiaz etc.

FLAVORS & DISTRIBUTION
Suppose the target set by Director of sales is to sell 12 lacs carton of Kurleez this year. The GM Sales will identify and distribute the targets accordingly between the area sales managers. Each ASM is given a different sales target depending on the sales density of his area.
SALES STRATEGY
DS
GMS
NSM
NSM
NSM
ASM
SO
OB
SALES DEPARTMENT
CANDYLAND
BISCONNI
SNACKCITY
Firstly, as lays is the market leader of the potato chips industry, Snackcity must maintain its standing with its flagship product i.e. Kurleez.
Secondly, Lays and kurleez maybe competitors of each other but they may not be an alternative product to each other. Lays makes plain chips while kurleez makes crinkle chips. Lays has started marketing its “Lays Wavy” which is a crinkle chip product. It is high time for Snackcity to relaunch its rusting product called “Crunch” against the plain chips of lays.
Summary of Deployment and Action Plan
MISSION STATEMENT
VISION STATEMENT
“We aim to offer high quality products to our consumers by remaining the most technologically advanced company in our field. We strive to be brand leaders in all the categories that we compete in. We wish to have a substantial presence outside of Pakistan, through export and local manufacturing.”
“We strive to deliver to our consumers' consistent quality of products which maximize our values and customers satisfaction. We are extensively catering to the domestic markets and strengthening our roots in international ones.

We realize our responsibility
towards society and contribute to our environment as good corporate citizen.”

Demographic
Full transcript