Contents

Introduction ..........................................................................................................................................................4
EXPLANATION OF INNOVATION:............................................................................................................................ 5
MISSION STATEMENT: ........................................................................................................................................... 6
VISION: .................................................................................................................................................................. 6
GOAL: .................................................................................................................................................................... 6
NEED GAP ANALYSIS: ............................................................................................................................................. 7
FULFILLING THE NEED: ........................................................................................................................................... 7
CURRENT MARKET SITUATION:.............................................................................................................................. 8
MARKET TREND: .................................................................................................................................................... 9
MARKET REVIEW: .................................................................................................................................................. 9
MARKET SEGMENTATION: ................................................................................................................................... 10
GEOGRAPHIC: ..............................................................................................................................................................10
DEMOGRAPHIC: ...........................................................................................................................................................10
PSYCHOGRAPHIC: .........................................................................................................................................................10
BEHAVIORAL SEGMENTATION: ........................................................................................................................................11
USAGE RATE: ...............................................................................................................................................................11
TARGETING: ................................................................................................................................................................11
INCOME GROUPS: ........................................................................................................................................................11
YOUTH: ......................................................................................................................................................................11
TRAVELERS:.................................................................................................................................................................11
PRODUCT POSITION STRATEGY:........................................................................................................................... 12
BY ATTRIBUTE: .............................................................................................................................................................12
BY BENEFITS: ...............................................................................................................................................................12
BY USE OR APPLICATION: ...............................................................................................................................................12
BY USER: ....................................................................................................................................................................12
BY PRODUCT OR SERVICE CLASS: ......................................................................................................................................12
BY PRICE OR QUALITY: ...................................................................................................................................................13
BY VALUES:.................................................................................................................................................................13
PLACEMENT STRATEGY: ....................................................................................................................................... 14
BRAND NAME: ............................................................................................................................................................14
LOGO .........................................................................................................................................................................14
TRADEMARK:...............................................................................................................................................................14
PRODUCT REVIEW: .............................................................................................................................................. 15
COMPANY NAME: ........................................................................................................................................................15
PRODUCT NAME: .........................................................................................................................................................15

INTRODUCTION: ...........................................................................................................................................................15
INGREDIENTS: ..............................................................................................................................................................15
PRESERVATIVES:...........................................................................................................................................................15
QUANTITY PER BADGE:..................................................................................................................................................15
CORE BENEFITS: ...........................................................................................................................................................16
FEATURES: ..................................................................................................................................................................16
QUALITY LEVEL: ...........................................................................................................................................................16
DESIGN & PACKING: .....................................................................................................................................................17
TYPE OF THE PRODUCT: .................................................................................................................................................17
COMPETITOR ANALYSIS: ...................................................................................................................................... 18
INDIRECT COMPETITOR: .................................................................................................................................................18
SUBSTITUTE COMPETITORS: ...........................................................................................................................................18
INDUSTRY COMPETITION:...............................................................................................................................................18
COMPETITORS PROFILE: ...............................................................................................................................................19
DAWN BREAD: ............................................................................................................................................................19
Company Profile .........................................................................................................................................20
DISTRIBUTION REVIEW: ....................................................................................................................................... 22
DISTRIBUTION CHANNELS: ................................................................................................................................... 23
PRICING: .............................................................................................................................................................. 23
FACTORS TO BE CONSIDERED WHILE PRICING: .....................................................................................................................23
INTERNAL FACTORS: ............................................................................................................................................ 23
MARKETING OBJECTIVES: ..............................................................................................................................................23
MARKETING MIX STRATEGIES: ........................................................................................................................................23
COST: ........................................................................................................................................................................24
EXTERNAL FACTORS: ............................................................................................................................................ 24
NATURE OF MARKET & DEMAND: ....................................................................................................................................24
COMPETITIVE COSTS, PRICE & OFFERS: .............................................................................................................................24
OTHER ENVIRONMENTAL ELEMENTS: ................................................................................................................................24
PRICING STRATEGIES: .......................................................................................................................................... 24
MARKETING SKIMMING: ................................................................................................................................................24
COMPUTING PRICE METHOD: ..........................................................................................................................................25
COST-PLUS PRICING: .....................................................................................................................................................25
OUR PRICES SCHEDULE: .................................................................................................................................................25
PRICING OBJECTIVES: ........................................................................................................................................... 25
MARKET SHARE LEADERSHIP: ..........................................................................................................................................25
PRODUCT QUALITY LEADERSHIP: .....................................................................................................................................25
ADVERTISING AND SALES PROMOTION: .............................................................................................................. 26
ADVERTISING STRATEGY: ..................................................................................................................................... 26
1) ASSESSMENT ...........................................................................................................................................................26

2) ACTION ..................................................................................................................................................................26
DELIGHT ADVERTISING STRATEGIES ARE: ............................................................................................................ 26
A) POSITION THE PRODUCT: ...........................................................................................................................................26
B) INVESTING IN CREATING A STRONGER BRAND PERSONALITY: ..............................................................................................26
C) USING THE INTERNET / WEB SITE: ...............................................................................................................................26
UNDERSTANDING THE PSYCHO-DYNAMICS OF THE MARKET: .................................................................................................27
ABOVE THE LINE SALES PROMOTION: .................................................................................................................. 28
ADVERTISING OBJECTIVE: .................................................................................................................................... 28
CAMPAIGN THEME: ............................................................................................................................................. 28
REACH:................................................................................................................................................................. 28
FREQUENCY: ........................................................................................................................................................ 29
MEDIA VEHICLE:................................................................................................................................................... 29
DECIDING ON MEDIA TIME: ................................................................................................................................. 29
SLOGAN: .............................................................................................................................................................. 30
PROMOTIONAL MATERIALS: ................................................................................................................................ 30
POINT OF SALE (POS) TERMINALS: ..................................................................................................................................30
PARTICIPATION IN TRADE FAIRS AND EXHIBITIONS: .............................................................................................................30
BROACHERS AND LEAFLETS:............................................................................................................................................30
BANNER & HOARDINGS:................................................................................................................................................30
QUANTITATIVE SWOT MATRIX ANALYSIS: ........................................................................................................... 31
STRENGTHS: ................................................................................................................................................................31
WEAKNESSES: .............................................................................................................................................................31
OPPORTUNITIES: ..........................................................................................................................................................31
THREATS: ...................................................................................................................................................................31
RESOURCE ALLOCATION: ..................................................................................................................................... 32
TOTAL INVESTMENT:

8 MILLION .......................................................................................................32

FIXED COST: ......................................................................................................................................................... 32

MACHINERY
VEHICLES
FURNITURE & FIXTURE

2.6 MILLION .............................................................................................................32

1.0 MILLION .............................................................................................................32
0.4 MILLION ...........................................................................................................32

VARIABLE COST:................................................................................................................................................... 32
RAW MATERIAL
LABOUR + UTILITIES BILLS+RENT
ADVERTISING + MISC.

1.5 MILLION ............................................................................................................32

1.7 MILLION ...........................................................................................................32
0.8 MILLION ............................................................................................................32

DELIGHT & CO. ..................................................................................................................................................... 33

Introduction
The company Delight Bread is the first company concerning with the manufacturing of
the flavored bread. It is the company, which doesnt only deals with the different flavors
of bread but also the stander of the bread.
Delight Bread is a name that has come to signify quality and freshness in bread
products. Initially the enterprise, Delight Bread will operate a plant in Faisalabad. After
that when we capture the market in Faisalabad we will launch it throughout the
Country. The Bread distribution network comprises 8 vehicles that deliver Delight to
more than 200 retail outlets daily; customers are located in major metropolitan areas,
secondary metropolitan areas and rural areas. The fleet will run approximately 300KM
each day to deliver fresh bread. Lahore, Multan Karachi Islamabad will be our future
destinations to launch our product there.
For purpose of standardization, the company will bring itself in line with international
standards of production, technology, machinery and formulation. All the Delight Bread
plants boast of the latest machinery used in the bread-making process. They will be
managed by senior food technologists with decades of experience, while those manning
the machinery will be provided on the job training in congenial working conditions.
Taking a responsible place in society, the company is committed to the uplift and
development of the society as a whole, and participates in sports and social welfare
activities.
We are a full service providing Delight bread offering a wide variety of fresh breads,
which have unique flavors. We have that new world tastes and freshness that is all but
obsolete in today's society.
We hope to continue to develop and maintain this relation in the future.

Explanation of Innovation:
Our product is unique in sense that it provides
with unique flavored in bread first time in Pakistan. Currently Delight has three flavors
of breads:

Chocolate
Strawberry
Mango

It is also at the same time a product for the health conscious people as well.
The bread industry in Pakistan has seen many changes in the last twenty-five years. It
has emerged as a small-scale bakery processing industry to numerous industrial bread
making units all over Pakistan. The bread industry in Pakistan is flourishing very
quickly and bread products are gaining much popularity. Bread has been accepted as a
popular substitute of:
Rice
Naan
Paratha

Mission Statement:
To provide our customers with bread that actually looks

and tastes good.

Vision:
Our vision is to become Pakistan's favorite bread this is underpinned by our
dedication to continued improvement across all areas of the business.
We are committed to developing the bread market and working with our customers, that
is why we invest a lot of time and money to understand our consumers needs.

Goal:
Our goal is to ensure that important values such as quality, freshness, and service
are delivered to our consumers in the 21st Century. For us this isn't just a business. It's a
way of life.
The task ahead is to concentrate on making the cake bigger rather than fighting for a
bigger piece of the existing cake.

Need GAP analysis:

Consumers are increasingly concerned about their health and
are well aware of the relationship between nutritious food and optimal health. Various
concerns have caused consumers to monitor their dietary habits closely.
The growing media coverage on health, the rising incidence of health conditions
(obesity, diabetes and cardiac problems), concerns over physical appearance, changing
lifestyle and also soaring costs of healthcare have all contributed to the demand for
healthier bakery products. In addition, the aging baby boomer population has had a
specific effect in increasing the demand for healthy foods. Some popular trends in the
market are the introduction of low/light, functional, natural and organic products, as
described below.

Fulfilling the Need:

Every day, before the sun rises, we begin making our bread
from scratch. The dough is made with natural whole grains and unbleached flour, with
no preservatives. Most of the breads are leavened with a natural sourdough starter using
a long, slow fermentation time. Every loaf is formed by hand and left to rise
naturally. The breads are baked throughout the day, with patience and care, on
traditional stone hearth.
This is an Old World style of baking, perfected over centuries. It is a process that brings
the most flavors out of the bread creating chewy loaves with a crunchy, flavorful crust.
We bake dozen varieties each day, and all of our breads are low-fat or fat-free.

Current Market Situation:

The bread and bakery products market has
struggled with numerous challenges over many years. As a mature and saturated
market, it has had to rely on continual investment in new product development (NPD)
and marketing to ensure growth, while rising energy and raw material costs since the
middle of this decade have forced manufacturers and retailers to implement price
increases.
The higher unit cost of bread, rather than increases in volume consumption, has led to a
9% increase in household expenditure on bread and bakery products during 2009.

The traditional white bread sector was the largest in the total bread market until 2006,
when the growing focus on healthy eating, among other factors, led some consumers to
switch to other types of bread and bakery products. However, despite falling
consumption, rising prices have meant that total household expenditure on white bread
rose steeply in 2008, and also in 2009, when it regained its position as the largest sector
in terms of expenditure.
The brown and whole meal bread sector has experienced a strong revival since 2005
something which can be linked mainly to renewed interest in healthy eating. The sector
has retained a share of the total bread market of more than 18% since 2006.
The specialty breads sector has shown steady growth during the past 5 years. It overtook
white bread as the largest sector in 2006, and in 2009 had sales at a similar level to
white bread.
The bakery products sector has seen constant innovation by manufacturers, with new
products appearing on a regular basis. However, the sector has also suffered from the
effects of discounting, keeping value growth at a modest level.
The economic situation has continued to be a challenging one for bakery businesses,
especially those at the small- and medium-sized end of the spectrum. Larger companies
have continued to place a high emphasis on branding and marketing in an effort to
differentiate their products from those of their competitors.
Only 5 % population of Pakistan is using the packed bread so rest of the markets still to
be captured. Here people are wiling to pay extra amount for the differentiated product.

Market Trend:
Market is currently not using up to dated technology and generally
companies are interested making the beads that remain at low cost. There is great deal
of competition in the market in a congested area of the market. There is a huge market
available where one can hit the target market.
Currently, 5% of the total population of Pakistan consumes packaged bread. The major
factors for such a low percentage of people consuming bread are mostly economical and
cultural. Pakistani diet consists of many substitutes for bread, which are cheaper and
preferred over bread by a majority of the population. The political scenario as well as the
legal scenario is not posing any threat to the bread industry growth apart from the price
restrictions, which actually fixed.

Market Review:
Our Products demand consists of all type of humans (children,
teenagers, youngsters, oldy peoples), who want to have flavored bread and also want to
have different features.
First we launch Delight bread in Faisalabad city, we made a survey in whole Faisalabad
and demand of such type of product is too much high. After this we have a plan to
launch.
We assumed that our product will easily prevail in the whole of baking market. It is only
because our unique product covers all the customer needs. Our mission statement will
create complete and effective positioning.

Market Segmentation:
Market Segmentation is an effort to increase a
companys precision marketing. A market consists of a large identifiable group within a
market with similar wants, purchasing power, geographical location, buying attitude, or
buying habits. We have done the segmentation on the basis of the following variables:

Geographic:
In this segmentation we will divide Faisalabad in different segments
according to areas, states, regions and markets. E.g. D-ground, medina town, Peoples
colony and samanabad. With this segmentation we can easily understand the need,
wants and demand of the people of the city.

Demographic:
In demographic segmentation we will divide people according to Age,
Income, Social Class, Occupation and their life cycle.
Gender: flavored bread can be use by males and females as well
Income: Flavored is basically for middle upper class people and it will be easily
Affordable for all type of these people.
Age: Flavored bread will be useful at every stage of life. Young generations and
older ones can also use this delicious bread.

Psychographic:
To analyze the psyche of the people of Faisalabad we divide them in
social class, life style and personality. According to the social class the available types in
fsd are as fellows:
Class of class
Upper class
Upper middle class
Middle class
Lower middle class
Lower class
For making the best market structure we set a reasonable price which suits all types of
social classes in Faisalabad.

10

Behavioral segmentation:
Behavioral segmentation divides buyers into groups
based on their knowledge, attitude, uses or responses to products. We also believe like
many marketers that behavior variables are the best starting point for building the best
market segmentation. In Faisalabad we see the behaviors of people with the help of the
questionnaire. After filling it we easily determine the values like occasions, benefits, user
status, user rates, loyalty and attitude towards the product.

Usage rate:
Flavored bread is particularly use by young generations who are very fond
of flavors like generation X they love chocolates and different flavors products. Usage
rate will be high because of these young generations.

Targeting:
After segmenting the market we are targeting the following segments:

Income Groups:
We will be targeting all income groups who should afford
easily. Flavored bread, being an established brand with mass appeal and cost effective
pricing, it will not discriminate between income groups.

Youth:
A huge potential market for this bread it lies with youth whom we will be
Specifically targeting road shows to be held as part of the Add Color campaign.

Travelers:
It is also available in mini-size factor, so it will be highly convenient to carry
along during large journeys or trips. This is why it will be targeted at travelers as well.

11

Product position Strategy:

Positioning is what the customer believes about
your products value, features, and benefits; it is a comparison to the other available
alternatives offered by the competition. These beliefs tend to based on customer
experiences and evidence, rather than awareness created by advertising or promotion.
Marketers manage product positioning by focusing their marketing activities on a
positioning strategy. Pricing, promotion, channels of distribution, and advertising all are
geared to maximize the chosen positioning strategy.
Basic strategies for product positioning that we have used:

By attribute:
We will position our product on the basis of attributes and features of
our product. Through our positioning we will try to set and fix the feature of Delight
Bread in the minds of our customers. In positioning we will focus more on the features
and attribute of our products.

By benefits:
We will also focus on the benefits if the products when we will position
our product through positioning we will tell our customer how many benefits they can
gat from our product. Our product has main benefit that it is a multi purpose product
which we will target in positioning of our product.

By use or application:
The different tastes from the ordinary bread. Use it with
butter or eat the simple loaf.

By user:
Every one who wants to have a different taste may have it.

By product or service class:

Delight bread will competes as an alternative to the
ordinary breads. It is positioned as a lower cost and healthier alternative to the ordinary
bread, while it provides better taste and healthy ingredients.

12

By price or quality:
Delight wants you to believe that their flavor bread is of the
highest quality Positioning is what the customer believes and not what the provider
wants them to believe. Positioning can change due the counter measures taken at the
competition. Managing your product positioning requires that you know your customer
and that you understand your competition; generally, this is the job of market research
not just what the entrepreneur thinks is true.

By Values:
We will also position our product on the basis of customer values. Like
this, if you want to look healthy then use Delight bread.

13

Placement Strategy:
Brand Name
Trademark
Logo

Brand Name:
Delight Bread a name that has come to signify quality and freshness
in bread products. The purpose of the research is to analyze the current state on the
baked goods market. The main tendencies and forecast the possible market
growth. Prior to the establishment of flavored Bread, will become largest producer
of bread products is the public sector.

Logo

Trademark:
We have registered our brand in ACCP office with registration number 7535359.
Now we have legalized it. We have registered our company by the name of
DELIGHT & Co.

14

Product Review:
Company Name:
Delight & Co.

Product Name:
Delight Bread

Introduction:
The company Delight Bread is the first company concerning with the
manufacturing of the flavored bread. It is the company, which doesnt only deals with
the different flavors of bread but also the stander of bread.

Ingredients:
Flour
Water
Salt
Yeast
Sugar
Cooking Oil
Emprovel
Flavor

Preservatives:
Calcium propionate
Calcium acetate

Quantity per Badge:

Flour
Sugar
Cooking Oil
Yeast
Emprovel
Calcium propionate
Calcium acetate
Water
Flavor

130 kg
6 kg
2 kg
2 kg
240 gm
250 gm
100 gm
62 liters
as per requirement

15

Core benefits:
Core benefits of our product are as follows:

Flavor
Strong bones
8 hours energy
Vitamin A & D
Quite notorious

Features:

Delight bread has different flavors

Make the bones strong
Repair the dead tissues of the body
Source of creating blood
Enriched with vitamin A & D
Glow the body & skin
Reduce fat & Carbohydrates

Quality Level:
We made the best quality product. Because it is a new product and
also for getting more and more response, to gain the best level of goodwill in Faisalabad
and also in Pakistan.
It is a unique and value able product for all kind of people living in Faisalabad. The
standard of Delight Bread is quite match with high level of breads.

16

Design & Packing:

The color of our bread is the same as the flavor we used in
making the bread and we provide the bread in a very attractive packing, just look like it.

Type of the product:

Basically Delight Bread is a convenient good. Less buying
effort is required to purchase this product. It is our daily routine product which will be
available at general stores, Departmental stores, Edible market stores and Super
markets.

17

Competitor analysis:
Competitor analysis in marketing and strategic
management is an assessment of the strengths and weaknesses of current and potential
competitors. This analysis provides both an offensive and defensive strategic context
through which to identify opportunities and threats. Competitor profiling combines all
of the relevant sources of competitor analysis into one framework in the support of
efficient and effective strategy formulation, implementation, monitoring and
adjustment.

Indirect competitor:
Indirect competitors of Flavored Bread are:

Different cakes
Biscuits
Cookies
Pastries

Substitute Competitors:
A substitute competitor is any competitor that fills the
same buyer need you fill but fills it in a different way. The substitute competitor of
Flavored Bread is:
Dawn Bread
Wonder Bread
Cakes and Bakes
Different Bakery Breads
Vita Bread

Industry Competition:
In industry there is not only one firm or company who
manufacture the breads. It means there is no monopoly but perfect competition, means
many companies are working against each other.
Now if we see the competitors of bread then we see the name Dawn because it is the
largest company in the country.
Instead of this there are many other companies who facilitate the people with the same
product. E.g. Wonder Bread, Vita, and many other bakeries that makes the Breads.
It means we have to face lots of problems and hurdles at the time of launching the
Delight Bread. There is much competition and we also be with them after launching our
product. So, we must be very careful.

18

Competitors Profile:
Dawn Bread:
Dawn Bread a name that has come to signify quality and freshness in
bread products. The enterprise, which made a humble beginning in late 1981, has,
within a decade, grown to capture 35% of the consolidated market share of all bread
products in Pakistan, a fact that speaks volumes about the credibility of the Company
and its products.
Today, Dawn Bread operates six plants throughout Pakistan. The Bakery's distribution
network comprises more than 500 company owned vehicles that deliver baked products
to more than 20, 000 retail outlets daily, making it one of the largest distribution
networks for any product in the country customers are located in major metropolitan
areas, secondary metropolitan areas and rural areas. The fleet runs approximately 4,
000 KM (2, 500 Miles) each day to deliver fresh bread.
Dawn Bread's management team recognized early on that to be a contender in the
baking industry the company would need to comply with international processing
standards. In 1990, the company developed a relationship with Campden & Chorlywood
Food research Association, Gloucestershire, UK. The association worked with Dawn
Bread to bring it in line with globally accepted production, technology, machinery and
formulation standards the hard work and dedication paid off in 2000 when the
company received its ISO 9001: 1994 certificate. The company also associated itself with
FMBRA of United Kingdom.
Now all the Dawn Bread plants boast of the latest machinery used in the bread making
process. They are managed by senior Food Technologists with decades of experience,
while those manning the machinery are provided on the job training in congenial
working conditions.

19

Dawn Bread is the official supplier of McDonald's hamburger buns throughout Pakistan.
The Company also supplies buns to KFS Stores: Dixy Chicken restaurants, a U. K. based
chain; Subway and other multinational companies in Pakistan. In addition to food
products, Dawn Group of Companies established a yeast plant in collaboration with a
Australian company "Burn Philips"
Realizing the potential in export markets and the need to bring native bread products
closer to its target markets Dawn Bread commissioned its frozen food operations in
2002. To bring the real taste and aroma of the native products, Dawn Bread developed a
manufacturing process utilizing state of the art Swiss bakery machinery combining it
with locally developed equipment. This unique combination resulted in products which
are closer to the actual taste and form that we make at home. Our Products have
received World wide appreciation in all the export markets we are exporting to. The
current export markets include: USA, Canada, UK, Norway, Netherlands, Germany,
Switzerland, Japan, U. A. E. South Africa & Saudi Arabia.

Company Profile
Basic Information
Company Name:

Golden Harvest Foods

Business Type:

Manufacturer

Product/Service
(We Sell):

Frozen Dough Products such as Paratha, Ready to Eat Meals,

Tandoori Items

Product/Service
(We Buy):

BOPP Film With out Corona Treatments, Margarine,

Packaging Materials

Address:

Korangi Industrial Area

Brands:

Dawn / Mezban

Number of Employees:

Above 1000 People

Company Website URL:

http:/www.Dawn Bread.com.pk

20

Ownership & Capital

Year Established:

1981

Registered Capital:

US$50 Million - US$100 Million

Ownership Type:

LLC (Ltd Liability Corp)

Trade & Market

Main Markets:

North America
South America
Eastern Europe
Southeast Asia
Mid East
Eastern Asia
Western Europe

Main Customers:

Frozen Food Chain Companies & Super Markets

Total Annual Sales

Volume:

US$1 Million - US$2.5 Million

Export Percentage:

21% - 30%

Total Annual Purchase

Volume:

Below US$1 Million

Factory Information
Factory Size:

30,000-50,000 square meters

Factory Location:

Korangi Industrial Area, Karachi Pakistan

QA/QC:

In House

No. of Production Lines:

Above 10

No. of R&D Staff:

11 - 20 People

No. of QC Staff:

5 - 10 People

Management
Certification:

HACCP ISO 9001:2000 Others

21

Distribution Review:
Distribution means to distribute the product through
different channels. Extension is the nature of every business for extending a business we
use some channels to distribute the Delight Bread. Mostly this cycle is used for the
distribution of the product. Mostly companies change their strategies day by day due to
development of distribution channels. These days all the well dressed organization
adopted the distribution channels.

Manufacturer

consumer

Distribution
review

Distributer

wholesaler
& Retail

In conclusion to this for a successful business we determine some standers to make a

very right decision. Not all but some of them are as follows:
How for the customers are?
The type of product being transported
Lead time required
Cost associated with transport

22

Distribution Channels:
We have to select the most suitable distribution channel
which will be completely helpful for us against our competitors. As we already discussed
that first we launch our product in Faisalabad after that we will be in other cities of
Pakistan our distribution channels in Faisalabad are the Bakeries, Supper stores,
Departmental stores, Marts and edible market stores. We will distribute our product to
these channels through our vans. We mainly focus on the retailers & Bakeries because
they are the only source which delivers our product to the final consumer.

Pricing:
Price is the amount of money which will charge from our customers in
exchange. Price is not just the number or tag on the product. But it is the most important thing.

Factors to be considered while pricing:

During setting the price we will consider these factors:
Internal Factors
External Factors

Internal Factors:
First we will consider the following internal factors while pricing:
Marketing Objectives
Marketing Mix Strategies
Cost

Marketing Objectives:
We will set a price to our product in accordance with the marketing objectives we have
i.e.
Survival
Profit maximization
Market share leadership
Product quality leadership

Marketing Mix Strategies:

We will carefully coordinate our price with other
marketing mix elements. We will use target costing to support product positing
strategies based on price.

23

Cost:
While setting the price we will keep in mind the cost relating to our product i.e.
variable cost, fixed cost and total cost.

External Factors:
While setting the price we will also consider some of important
external factors such as,
Nature of market & demand
Competitive costs, price & offers
Other environmental elements

Nature of market & demand:

Before we setting the price we will access the
nature of the market and demand. We will analyze that which type of market is existing,
rather there is pure competition, Monopolistic, Oligopolistic, or pure Monopoly in the
market. After analyzing these factors we will set the price.

Competitive costs, price & offers:

We will access the cost per unit, prices and
offers of our competitors. We will analyze the marketing strategies adopted by our
competitors. We also consider per unit cost of them & prices they offer to the market,
also consider the offers they giving to the customers.

Other environmental elements:

Before setting the price we will also analyze
the economic condition of Pakistan. Also consider the inflation rate in Pakistan. We will
also access the market conditions and Govt. restrictions regarding price.

Pricing strategies:
We will adopt the following pricing strategies to set the price of our product:

Marketing Skimming:
Delight is using Price skimming strategy. It is a pricing
strategy in which a marketer sets a relatively high price for a product or service at first,
and then lowers the price over time. It is a sequential version of price discrimination and
yield management. It allows the firm to recover its sunk costs quickly before
competition steps in and lowers the market price.

24

Computing price method:

Cost-plus pricing:
Cost-plus pricing is a pricing method used by Delight. It is used
primarily because it is easy to calculate and requires little information. There are several
varieties, but the common thread in all of them is that one first calculates the cost of the
product, and then includes an additional amount to represent profit.
The method determines the price of a product or service that uses direct costs, indirect
costs, and fixed costs whether related to the production and sale of the product or
service or not. These costs are converted to per unit costs for the product and then a
predetermined percentage of these costs are added to provide a profit margin.

Our prices schedule:

Product

Quantity in pieces

Price in Rs.

Delight Bread

8 piece

Rs. 22

Delight Bread

14 piece

Rs. 35

Delight Bread

18 piece

Rs. 55

Pricing Objectives:
There are many general pricing objectives which include
survival, current profit maximization, market share leadership, product quality
leadership and relationship building. But above all most important objectives are:

Market share leadership:

Within the price we want to capture great market share.
The price of our product is very reasonable and not too much expensive; people of
middle class can easily afford it. We set that such a normal price so that we can capture
the market share.

Product Quality Leadership:

We believe in quality. We will offer a high quality
product in this reasonable price. We cant compromise with quality. We are offering a
quality based product. So that we are able to get the quality product leadership.

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Advertising and Sales Promotion:

Advertising strategy:
There are two major parts to an advertising strategy.

1) Assessment
What's going on in the market, whats the history, the current situation?
What are the major trends in the market?
What's the future looking like? (With the product. With consumer
attitudes.)

2) Action
What should your customer do about the most significant opportunities or
Problems presented by the situation?
What should to do with the brand?
With direct marketing.
With the way the company is positioned.
A SWOT analysis helps in figure out the "What's going on" part. And figure it out
quickly.

Delight Advertising Strategies are:

A) Position the product:
"Because we are worth it."

B) Investing in creating a stronger brand personality:

It will base on an upscale, character that people will aspire to associate with.

C) Using the Internet / Web site:

Currently Delight dont have any Web site but it will have an internet asses and web site
in future to target and sell younger buyers, new buyers, before they have established a
product.

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You can also see that the ad strategy deals with the big strategic issues:
Branding,
Positioning,
Media.
Delight is a new in the world of breads because it is just not that ordinary bread which
has that old milky or simple bread taste. It is different from the traditional breads
because it has a flavor.
We have just launched Delight in Faisalabad and we want it to be in every house, every
restaurant, where there is its need. And it does so with simple action statements
describing what you intend to accomplish.

Understanding the Psycho-Dynamics of the market:

Whats going on
inside the brains of buyers, of perspective customers? It
includes, but is not limited to, Consumer Involvement Theory (CIT).
How the consumer relates to the purchase:
Rational to emotional. High to low involvement. People probably buy the same brand
of breads with a mindless motion at the market. Because it is priced.
But besides Consumer Involvement Theory (CIT), there are likely other issues,
Perhaps more important issues, such as why people buy the other brand bread:
People may think that the ordinary bread is of higher quality or more good in
taste or more healthier products.
Or perhaps it's not so much what people think about competitors, but what they
think about our customer: "I don't know if it will be available in the market easily."
Psycho-Dynamics is everything. Its all that stuff rattling around between the ears of
likely customers. The thoughts, feelings and ever-changing prejudices that influence
purchase decisions. That's the Psycho-Dynamics of the market. And it is always
changing. Knowing exactly what you want the advertising to accomplish.

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Above the line sales promotion:

Delight is using above the line (ATL)
sales promotion currently, that is Delight will advertise through media such as;
TV
Radio
Newspaper
Magazines
Broachers
Banners
To promote the brand, Major uses include television, radio, and newspaper advertising
and banners ads on different squares (chocks) in the city. This type of communication is
conventional in nature and is considered impersonal to customers.

Advertising objective:
Delight has clear and specific aim of an advertising or commercial, such as
To earn profits
To compare,
To gain attention,
To inform,
To persuade, or
To remind our customers about our product.

Campaign theme:
The Currently campaign themes of Delight is developed with
the intention of being used for a substantial period of 3 months but it might be short
lived or extended due to factors such as being ineffective or market conditions.

Reach:
60% of the television viewers, 70% of radio users and 90%of news paper
readers should be exposed to the ads or commercials which are on media and media
schedule within a period of 3 months in the big cities of Pakistan such as;
Karachi,
Lahore,
Islamabad,
Peshawar.

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Frequency:
The frequency in the beginning will be high. It will keep high for some months for the
period after the soft launch and later it can be decrease. There will be changes in the
frequency with the time and market conditions.

Media Vehicle:
The print and electronic medium employed in an advertising campaign used by
Dellight is as follow.
ELECTRONIC MEDIA

PRINT MEDIA

Tv
Ptv

Radio
Fm 101

News paper
The news

Magazines
Young world

billboard
M-tax chock

Geo tv

Fm 103

Jang

D-ground

A tv

Fm 90

Dawn

Sunday
magazine
Akhbar-e-jahan

Ary

Fm 89

Express

Family magazine

Harriyaan wala
chock
General Bus
stand chock
Millat chock
Madina town

Deciding on Media time:

We will advertise Delight Bread on TV 4 times in a day and almost for a week in first 2
and half months, and the add will go air in the prime time broadcasting like Drama
hours, it will also be advertise daily in the mid of the KHABARNAMA.

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Slogan:
Discover a Healthier Slice Of Life!

Push strategy:
A push strategy is used by delight because it is a new product which is unknown to the
consumer. As there is no consumer demand in the product launch, the product and the
information are "pushed" to the consumer by distribution and promotion.

Promotional Materials:
Some of the promotional materials are as follow:

Point of sale (POS) Terminals:

Delight has place different check out counters in
big general stores like AL-FATEH, Pace and HKB. Plus they have placed very different
and unique and stylish type of racks to the shops, which are very attractive and heart
appealing.

Participation in Trade Fairs and Exhibitions:

Delight has stalls in the
different Exhibitions held in different schools, universities and cities. Where they sell
and tell the consumers about the product that is the flavor bread. Also in those stalls
they are using the flavored bread making different types of sandwiches to tell the users
about the utility and benefits of Delight Bread.

Broachers and Leaflets:

Delight has very attractive and appealing broachers
which Delight have distributed with the news papers and they have also placed it on the
cash counters in different stores. Plus, Delight is now having a man standing on the
entrance of big shopping malls in the city.

Banner & Hoardings:

Delight has placed banners on different squares in the city
and they have the hoarding placed on the malls and stalls in the exhibitions.

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Quantitative SWOT matrix analysis:

Strengths:
Our ability to produce options keeps more consumer interest and needs met.
Our new production technology will enable us to mass produce products more
efficiently and quickly than other old companies.
Our new taste will attract many such type of consumers who are taste changer
New product innovation in local area. So it will attract the people of local area.
No specific Competitor
reasonable prices, our Bread will easily affordable for lower income group also.

Weaknesses:
No brand recognition our name in baking industry is new so most of people are
not familiar with delight Bread.
No separate outlet as we have not enough finance to construct our separate
outlet.
No customer orientation in local areas, as we newly introduce in Faisalabad so
customer are oriented in the brand.
The more flavor we create the production cost will increase.
At starting we will not have as such trained staff that has such market experience.

Opportunities:
This product is introducing in Faisalabad for the very first time so there is no
specific competitor, so the number of customers with us will be more than any
other competitor in flavored bread baking industry.
Our new taste will attract much, such type of consumers who are taste changer.
Our new production technology will enable us to mass produce products more
efficiently and quickly than other old companies.
Our ability to produce options keeps more consumer interest and needs met.

Threats:
New product may people dont accept it.
There are large companies who have brand loyal customers providing the market
with not exactly similar but milky and other breads.
Switching brand loyal consumers to a smaller and newer company.
There is open market everywhere means any new company or existing ones can
start the same production that may have more experience or more qualified staff.
Imitation by existing bakeries, May try to copy it.

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Resource Allocation:
Total Investment:

8 million

Fixed Cost:
Machinery

2.6 million

Vehicles

1.0 million

Furniture & fixture

0.4 million

Variable Cost:
Raw material

1.5 million

Labour + utilities bills+Rent

1.7 million

Advertising + Misc.

0.8 million

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Delight & co.

Expected Income statement
As on 31st March
Particulars

Rs.

Sales expected

4095000

Less:
Sales discount & allowances

370500

Net Sales

3724500

Less:
Cost of goods sold

2695000

Gross Profit

1029500

Tax @ 16 %

164720

Net income

864780

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References:

Sir Farooq Jamal

Philip kotler
Journal of Marketing
Journal of Advertisement
Survey from different people
Websites:
www.besto@oveninadia.com
www.smeda.com
www.scribd.com

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