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Final Report on Pepsico and Kurkure


TABLE OF CONTENTS

Executive Summary.

Mission & Vision Statement.

Introduction & History.

Product Introduction.

History of PepsiCo.

History of Frito-Lay.

Introduction of Kurkure in Pakistan.

Product Evaluation.

Quality, Style & Design.

Flavors

Ingredients

Usage

Pricing.

Packaging.

Branding.

Labeling

Product Lifecycle

Consumer Evaluation.

Marketing Segmentation.

Market Mix.

Cultural & Social Factors.

Economic, Political & Technological Factors.

Competitors Analyses.

Major Competitor.

Direct Competitor.

Indirect Competitor.

Marketing Objectives.

Marketing Environment.

Marketing Strategy.

SWOT

Evaluation, Monitoring and Control.

 

  

“Executive Summary”

 

 

This is the detailed report about PepsiCo product Kurkure.

It covers the detailed product introduction with respect to the four Ps of the marketing, brief history of the company, marketing environment of the company in Pakistan, product & consumer evaluation that affect the workings of the company. It also includes the detailed competitor’s analysis.

This report also covers the marketing objectives, marketing strategies such as target market, pricing and product strategies & SWOT analysis.

At the end we gave some recommendations which may be useful in the growth and progress of the company. We have tried our best to cover all the topics of report and provide maximum information about the organization.

 

 

 

Mission Statement

 

· To be a result oriented and profitable Company by consistently improving market share, quality, diversity, availability, presentation, reliability and customer acceptance.

· To ensure cost consciousness in decision making and operations without compromising the commitment to quality.

· To set up highly ethical business standards and be a good corporate citizen, contributing towards the development of the national economy and assisting charitable causes.

· To adopt appropriate safety rules and environment friendly policies.

 

 

 

 

 

 

Vision Statement

 

· To be a market leader providing quality extruded snack products.

· To strive for excellence and global recognition by continuous improvement, innovation, dedication and growth.

 

 

Product Introduction

 

Named after the Hindi word for "crunchy", Kurkure is a Cheeto-like snack made and marketed by Frito Lay's. It is one of the most popular snack food products in Pakistan today. Kurkure comes in 3 different flavors. Snacks are of two types extruded & potato chips, Kurkure is the extruded snack item. Introduced in Pakistan by PepsiCo International on 1st September, 2006. Initially made in China under ‘Saudi Snack Food’ but now from 14th august, 2006 it is produced by PepsiCo International at plot no.413 Sunder Estate Rewind Road Lahore.

 

History of PepsiCo.

 

Caleb Bradham, a New Bern, North Carolina pharmacist, renames "Brad's Drink," a carbonated soft drink, created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is first used on August 28, 1898. In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as “Exhilarating, invigorating, aids digestion.” 1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. In 1965 company begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.

 

 

 

History of Frito-Lays

Frito-Lay is an American and international company that markets corn chips, potato chips, and other snack foods. Its headquarters is based on Legacy Drive in Plano, Texas, USA (a suburb of Dallas). Frito-Lay was the result of the merger of the Fritos Company and Atlanta-based H.W. Lay & Company in 1961. In 1965, a merger of Frito-Lay, Inc. and the Pepsi-Cola Company resulted in the formation of PepsiCo, Inc. Currently, PepsiCo retains ownership of the Frito-Lay Company, Tropicana Products, The Quaker Oats Company, and The Smith's Snack food Company, Gatorade, and various other ventures. Kurkure also comes in the ownership of Frito-Lays.

 

Introduction of Kurkure in Pakistan.

Although Kurkure is the product of Frito-Lays but it was introduced in Pakistan by PepsiCo on 1st September, 2006. It was initially made in China under ‘Saudi Snack Food’ but now from 14th august, 2006 it is produced by PepsiCo at plot no.413 Sunder Estate Rewind Road Lahore. Kurkure capture a huge market in a very limited time due to its mouth watering taste and aggressive marketing.

 

Product Evaluation

Kurkure lies in the extruded item which comes under FMCG Products (fast moving consumer goods). Like every other multinational company, before introducing the ‘Kurkure Company conduct different surveys to get consumer interest about features, design and quality level. Kurkure is the convenience good at the consumer level so they are not offering any after sale service, user manual but they are offering benefits to the retailers in the form of more profit.

Kurkure is unique in Quality, Flavor, taste and quantity. It’s totally fulfilling the need of the people. Kurkure is the consumer product because it basically use at the consumer end, consumer buy or purchase for their personal use or consumption. In the case of Kurkure the consumer buying behavior is frequent purchase as Kurkure is easily available at a very low price at almost every general or retail stores in the country.

Quality

As far as the quality is concerned, company is producing a high quality product at a very low price. Customer in this region consider low price but still want for high quality. Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is offering “fast-mirchi” product to the customers.

 

Style & Design

Style and design matter a lot on the outcome and response of the product. ‘Kurkure’ as the product (inside the pack and out side wrapper) has much attractive and catchy colors style and design which attracts the customers a lot.

Flavors

Initially Kurkure was introduced in the market with only 2 flavors but later on company add 1 more flavor in the family of Kurkure. All flavors of the Kurkure are mouth watering and tempting. The real taste is in the crispness of the product, consumer can use Kurkure as plain or with different styles & recipes. Kurkure has adding more and more flavors to attract the consumers and retaining same taste.

 

 

 

Kurkure’s Flavor.

1. Masala Magic

2. Red chilli Jhatka

3. Podeena Masti

Ingredients

While concerning the ingredients, it contains major mixture of Rice Meal, Edible Oil, Corn Meal, Gram Meal, Salt, Spices and Condiments and converted them to snack like eating crisp sticks that has never introduced before.

Usage

Kurkure is also positioning itself on the basis of its usage. Its promotional campaigns urge consumers to use it on.

Daily basis:

· At lunch

· Dinner

· Anytime, anywhere

Servings:

· With Chaat

· With tea

· With Raita

· With drinks

Occasions:

· Parties and celebrations

Pricing

Kurkure is standing in market as a low price chilli snacks. It is affordable by the consumers of every income level from very low level to high level and price is delivering value to customer.

Price Range:

· Small Rs 5/-

· Medium Rs 10/-

· Large Rs 20/-

 

Packaging

Kurkure is available in the market in 3 different packing. Kurkure comes in the air tight packing & packing material of Kurkure is of high quality so that product will remain fresh and its taste keeps secure up to more than four months. Kurkure has 3 different flavors in the market so the each flavor has its own unique packaging color combination according to its taste. Basic color combinations are in green and red colors which all are eye catching.

Kurkure is available to the consumer only in primary packing. No secondary packing is using. However they are delivered in container packing from production plant to shopkeepers or retailers, which carries 48 packs.

Kurkure is available in three different sizes

· 19 gm

· 38 gm

· 75 gm

Branding

The brand name came from India from Hindi word for "crunchy", Kurkure is a Cheeto-like snack made and marketed by Frito Lay's. Kurkure lies in the manufacture brand because they are producing their product by its own. ‘Kurkure’ is an international brand of PepsiCo Int. and they are controlling the production itself in India. When they came Pakistan, although in Pakistan Riaz bottlers are the dealer of Pepsi but for ‘Kurkure’ company itself made a plant and produce them by their own to serve their customers. With the time being this brand is so familiar so its capture the mind of every person as a unique, quality, and tasty extruded with Kurkure’s Brand.

 

Labeling

Labeling is the significant part of the product although there is less space available for that but it contains many information regarding the product. On the pack of ‘Kurkure’ following information are available. Nutrition facts & ingredients details are available on the back side of the “Kurkure” in all 3 types of that such product available in the market for health conscious people. On the front of every

Kurkure’s pack it is clearly indicates that it’s a Hilal Food.

 

 

NUTRITIONAL INFORMATION

Red Chilli Jhatka Amount per serve (10g)

Energy

KJ

108.4

 

Kcal

60

Protein

g

1.3

Carbohydrates

g

9

of which sugar

g

0.3

Fat

g

7.1

of which saturated

g

3.3

Fiber

g

0.2

Sodium

g

0.2

NUTRITIONAL INFORMATION

Kurkure Masala Magic Amount per serve (10g)

Energy

KJ

108

 

Kcal

60

Protein

g

1.3

Carbohydrates

g

10.0

of which sugar

g

0.4

Fat

g

6.9

of which saturated

g

3.1

Fiber

g

0.2

Sodium

g

0.2

NUTRITIONAL INFORMATION

Kurkure Podeena Masti Amount per serve (10g)

Energy

KJ

240

 

Kcal

60

Protein

g

0.7

Carbohydrates

g

5.5

of which sugar

g

0.2

Fat

g

4.0

of which saturated

g

1.7

Fiber

g

0.1

Sodium

g

0.1

 

Product Life Cycle.

Kurkure is launched only few months (1st September 2006) back in Pakistan and growing day by day. Currently Kurkure lies in the Growth stage where the profit ratio is not very high but the growth rate is very high but by the time pass consumer may be become exhaust from this product, which is a natural phenomenon, and the product will at stake on the point of maturity. By introducing new tastes, flavors and retaining the quality standards, it will snatch consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them.

 

Consumer Evaluation

Marketing Segmentation

1. Geographic Segment:

Concerning geographical factor, Kurkure is trying to expand its wings to cover towns, villages, cities; making it available to everybody. The product Kurkure is specially designed for the Gulf & South Asian region specially India & Pakistan considering the taste & style of the traditional foods & flavors.

2. Demographic Segment:

Concerning demographical environment, Kurkure will focus on several variables such as age, gender and income level.

Age: Kurkure will focus heavily on children and young people.

Gender: Kurkure is a generalized product for any sex, male or female.

Income level: Kurkure pack is easily affordable and company is trying to give more for less making it best value of money.

3. Psychographic Segment:

Considering psychographic factors, Kurkure will heavily focus on customer’s life style, tastes, and personal values that best math with the product usage and distinctive from competitors. Making an image of style, standardized taste and variety of flavors, Kurkure will impact positively on individual customer satisfaction.

 

Marketing Mix

1. Product

Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is offering “fast-mirchi” product to the customers

 

2. Price

Price also plays a vital role in the buying decision of any product because the price of a product will create a perception about the quality of the product. Kurkure is standing in market as a low price chilli snacks. It is affordable and price is delivering value to customer

 

3. Promotion

Kurkure is making big investments in promotional campaigns, using top models & celebrities from the media. Company is touching customers through:

· TV advertisements

· Posters

· Retailer promotions

4. Distribution

Placement of a product is also very important while buying the product like Kurkure. Since the right product at the right place is the real effectiveness of the company as well as product.

 

 

Cultural Factors

As Pakistan is the agriculture based country, 70% of our population is connected directly or indirectly with the agriculture sector. Rice, Corn, Gram & Spices are the main & basic ingredients of our food. In fact Kurkure is such type of item which is specially designed for this region but it does not have any threat from the subculture of this region. Market in this region and its culture is extremely favorable for such type of snacks, which come in the head of extruded item, and people buy snacks frequently in this region.

By understanding the culture company is advertising their product for all age groups because their product is for everybody’s use. This understanding is also very important for their purchasing patterns and use. The company is mainly concentrating on upper & middle class.

 

 

Social Factors

The target market of Kurkure is generalized including children, young and old people. In precise target market, Kurkure is focusing heavily in children and young segment. Kurkure is such kind of product which is easily affordable for every class of the market either quality conscious or price conscious, excluding lower lowers and upper lowers. The main focus of the company is the middle class along with a bit of elite class and also working class. Middle class is the best responding class for Kurkure.

 

Economic Factors

The price of the small Kurkure pack is Just Rs.5/-, so it is affordable to every class of the country although those are not who are below working class (labors).

 

Political Factors

Kurkure is a legally registered company and applying labor laws and market laws of Pakistan. But it is known to them that Government interaction got much importance in every business and if there are some restrictions on them then it may be a hurdle in their way to success. That’s why some harsh Government rules may influence a wrong impact on company’s goals and achievements in future.

 

Technological Factors

 

Kurkure being the product of PepsiCo International and having a good repute in international market are already using modern technology to enhance the production and the quality.

 

 

Competitor Analysis

Mr. Chips

Kurkure
Veezo

Kurleez

Pringels

Popcorn

Biscuits

Jelly Beans

Crackers

Candy Bars

Doughnuts

Canteens

Hotels

Drinks

Product Category Competition:
Crispy foods

Generic Competition:
Snacks

Budget Competition:
other foods and fun

Product Form
Competition:
Salty Sticks

Lays

Slanty

Lollipops

Cocktail

Nimko

 

 

· Direct Competitor.

In direct competition, Veezo is a major competitor for Kurkure, because of;

1. Ingredients, taste and style

2. Hitting directly the segment of Kurkure

3. Capturing a good segment of market

4. Taste and flavors

Strengths

1. The company is launched with a different image performing as a snack food. Comparatively it is facing lesser competition in the market.

2. Its has been launched with its strong promotional campaigns

3. It has a different kind of target market as mention in the slogan “VEEZO LEEJIYA KUCH ALAG MAZA KEJIYA”

 

Weaknesses

1. The company doesn’t have a strong brand image in the local market as comparatively the other competitors have like Kolson (Slanty) and Cheetos.

2. There quality is not as better as other competitors of them like KURKURE are providing.

 

 

· Primary Competitor.

Kurkure’s primary competitors are Kolson Slanty who still holds the largest share of the market.

Strengths

1. Company is producing wavier natural extruded item and per package price is same as “KURKURE” is producing.

2. Kolson (Slanty) already existed in market before the arrival of “KURKURE” and its integrity with the local market is older than “KURKURE”.

3. Kolson (Slanty) is very much aggressive in her promotional campaigns and have targeted youth and Teenagers.

4. They have a very attractive slogan “Friendship Karo Gay” which attracts the youth and Teenagers.

Weaknesses

1. They don’t have their stands yet therefore it’s hard for them to create a shelf space.

2. There quality is not as better as other competitors of them like “KURKURE” are providing.

3. The quantity of Kolson (Slanty) is less than the quantity of “KURKURE” at same price.

 

· Secondary Competitors

There is a list of secondary competitors for company’s products such as:

1. Rings.

2. Twister

3. Potato sticks

Strengths

1. ‘Triple M’ is a company having strong brand image, positive perception and strong placement in the market.

2. It existed in local market for a long duration and had a very much recognized brand.

3. It is working for several years; the company has understood the geographical segmentation of the market so it is providing the supply for the demand on exact time and exact place.

Weaknesses

1. New rivals has been become a hurdle in their way. The new brand like “KURKURE” is influencing the customers with its strong international brand name.

2. ‘Triple’ M is not providing super value to the customers.

3. The packaging is not meeting the international standards

4. There is no variety of flavors in their product.

 

 

· Indirect Competitors

Kolson (Potato Sticks, Biscuits and Nimko), Triple M (Super Crisp, Dino Munches etc.), Pringels and other eatables in this category are the indirect competitors of “KURKURE”.

 

Pringels

 

Strengths

1. The target market of Pringles that is Super Elite is loyal to them.

2. The packing of the Pringles is prepared of Aluminum foil which attracts the health conscious people.

3. The placement of each piece of chips in the packet is arranged in a manner and same in their size which also catches the attention of customers.

Weaknesses

1. The have target just the Super Elite Class neglecting the other social classes of the market.

2. The prices are that much high that its not being paid by habitual or variety seeking customers.

 


   
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