January 02, 2014
Course Instructor, Ms. Ayesha Aman
Strategic Marketing Management
Dear Respected Ma’am,
We are submitting here, a report on “Strategic Marketing Management”.
All the information provided in this report is comprehensively discussed with a
satisfactory background of valid facts and figures.
In this report we discussed the entire strategic marketing management
concepts that we have learn in our class.
If there are any questions or queries you have about the material presented in
this report, I will be extremely glad to appear before you.
Furqan, salman, waqas & waqar
With the blessings of ALLAH the almighty, the report enclosed has reached its stage of final
completion. This report is a result of exhaustive and much enthusiastic work. We extend our
heartiest thanks to “Ma’am Ayesha Aman”, for conducting this course and making it
interesting and knowledgeable, without her efforts and co-operation the report could not have
been possible. We also thank for her confidence and trust she had on us, which cannot be
anyway under estimated.
We are also equally grateful to Our University for providing us the opportunities to pursue
We hope readers of this report can complement the depth of the study and efforts put into it.
8. Positioning & Product
9. Consumer Analysis
Nature of buying
10. SWOT Analysis
1. Our Own SWOT
2. Distribution channels
11. Contact Method
12. Marketing Channel
1. Geographic coverage
2. Distribution channel
3. Distribution Overview
13. Requirement and selection
14. Direct marketing
15. Research overview
The product we have chosen is Hilal “Cup Kake”. The vision of Hilal
becomes a development partner to their key customers. They create
integral solutions for various areas where they can identify the need of
good taste cake.
The company generates the profit by setting pricing strategy skimming to
generate the maximum profit from innovators in earlier adopters and grab
the market share.
“Cup Kake” has several powerful strengths on which to build, and one of it
is brand awareness and brand image in the market.
The major opportunities is changing life style of people that delivers a
number of valued benefits, eliminating the need for Customer to use this
product as it has good taste which is good for children.
They also face the threat of ever –higher Competition from their biggest
competitors, as well as downsizing pressure and chance of price war.
“Cup Kake” strengths, weakness, opportunities and threats has been
Hilal targets families of upper middle and higher classes, small and large
The companies analyze the market situation where DAWN is the major
The company establishes the market strategy choosing the target market
approximately 10 million people in number after carrying out a market
survey they found out that their existence a need of this “Cup Kake” , 60%
people were positively reply about the constant need for such product.
Pakistan is very potential market (basically we are targeting urban
population, the growth rate of urban population is 0.75%) so we can say
that the environment for this product is beneficial.
Hilal has a B2C distribution channel which includes the company itself, the
wholesalers and retailers.
It basically uses a pull strategy for Promotion of its brands, focuses more
on communication and is the only consumer goods company that gives the
lowest markups to retailers.
Company History and Background:
Hilal has been synonymous with excellent quality confectionery products for
the past fifty years. Over the last half century, the company has diversified its
product range, with a variety of popular new confectioneries for consumers all
over Pakistan to enjoy. Hilal Confectionery is a market pioneer and leader
with their classic range of candies and bubble gums - now newer, improved,
and innovative products like chocolates, wafers and powdered drinks have
also had a substantial impact on the marketplace. The extensive Hilal
portfolio includes, but is not limited to, such recognizable products such as
Amras Candy, Chooran Chatni, Khopra ,Pan Pasand and Ding Dong at one
end, to Milker Bar Bar, Line Up, and Sun Sip at the other end.
Hilal is an ever-advancing company, with its vision firmly entrenched in the
future. In line with this vision, the production units at Hyderabad were recently
shifted to the main city of Karachi. The company has been busy looking at
new ways in which to approach its market, and in line with such an innovative
approach, is now consolidating the launch of packaged cakes, produced on
the finest imported machinery. Taking into account Hilal’s stellar track record,
and appreciation from the customer base, Kake is destined to be another one
of Hilal’s Halo brands.
Hilal's latest product, 'Kake' is part of the company's new baking division,
which has enabled the company to gain market share within the snack food
Growing companies respond to changing market trend. This adaptation helps
them to secure good market share. Hilal with its associated concerns have
always been given importance to market changes and consumer preferences.
Hilal has developed variety of products, which appeal to almost all market
segments with basic objective to capture the all-demographic segments. Hilal
got the title of market leader in local confectionary items.
To achieve customer satisfaction in response to changing market trends
To innovate within existing products and technologies according to
To maintain its high market share and market leadership
To be accessible to all segments in the market
To constantly maintain its high quality standards
Hilal Confectionery (Pvt) Ltd has always given priority to consumer
preferences in the market, appealing to different market segments inclusive of
all demographic segments. Given the company’s focus on high quality, food
safety, nutritional value, and consumer appeal, Hilal has achieved the title of
market leader in the Pakistani confectionery market
Hilal, along with its ancillary concerns, currently holds the title of market
leader in confectionery, and it envisions to not only maintain this position, but
also to replicate this success in new product categories also. Being number
one means having to anticipate the customers’ needs and desires. No one
does this well than Hilal.
Sister concerns of Hilal, involved in manufacturing of confectionery
and powdered drinks, place a great emphasis on quality control by
using modernized plants that are operated by qualified and trained
staff. Automization is encouraged, and progressive, custom software
has been introduced for nearly all the departments. Innovation
through latest technology utilization and optimum utilization of
qualified staff members is the basic tenet on which Hilal thrives.
Positioning involves what values offers to the segments and also designing
the product image that will occupy a distinctive place in the mind of the
consumer of the target market. Hilal Company has decided to create its own
unique image and then strong position in the consumer’s mind. Hilal
positioned its product in the mind of the consumer as:
Kids, students and youngsters (TARGET MARKET)
Cup “Kake” (brand name)
Providing taste with more exciting flavors(concept)
More flavors (differentiate)
“THE “CUPKAKE” THAT EATS LIKE A MEAL”
They are offering innovative features and flavors in the cupcakes. This brand
meets people’s expectation as having light treat in
evening. Hilal has placed the bill boards on roads,
bus stops, actively using of page on social websites
and playing attractive ads on TV channels.
Hilal offering the quality product to their customer with different benefits
in the cupcake and flavors to fulfill need and wants. Hilal believe that the
customer should come back not product. The company goal is that,
make the product free of defect that make customer reliable for the
product. That’s why Hilal made valuable product for customer point of
view to satisfy customer and build long term relationship.
They are offering unique cupcake by introducing more flavors and
different packaging which no one in our competitor is thinking. They
know their product form is unique and it will make their customer life
Their product, “Cup Kake” is made from high quality vegetable oils, so it
is important source of essential fats and vitamins A, calcium and iron.
Cupcake makes a big contribution to the healthy growth and
development of the whole family. It is a good source that is necessary
for healthy growth and development, both for children and adults.
Vitamin A helps maintain good vision.
Calcium maintains strong bones
Iron provides oxygen to all parts of the body
Did you know?
Hilal’s product helps you to live well and enjoy your life!
More than 90 percent of medical specialists dealing with children say
that children need nutrients in their diet for healthy growth and
Vitamin A, calcium and iron are building blocks for the body. Cupcake is
a good source of it.
Nearly nine out of every ten primary school teachers interviewed for a
recent study say that bad eating habits affects not only healthy growth
and development, but also performance at school.
Pricing is very difficult because the various companies have related product,
cost and face different degree of competition. Hilal wants to maximize the
market share by using skimming price.
Hilal is using target return pricing. First they will
make 60,000 units. The maximum cost of sixty
thousand units is 1200,000 (20each).
Through this strategy Hilal tends to generate maximum revenue from
the innovators and early adopters. This strategy, as we all know, is only
effective if Hilal is keep doing repositioning their product, in short we
mean to say our product is innovative.
They have many reasons to use skimming
price. They want to create superior
product’s image in the mind of customer.
If they use skimming price so competitors
will not enter with the same technology in
the market immediately. They have
maximum time to generate a profit from this
Price Adjustment strategies:
They are using two types of price
They are first one to introduce this concept.
So they used psychological pricing strategy and set the price of product
high to make them belief that the quality of our product and service is
The second price adjustment strategy they are using is discount pricing.
They give discounts to their customers if they purchase their given
Promotion through product placement:
They will be looking forward to promote their product through
product placement strategy as now a day’s Pakistani dramas are
very popular so we’ll be targeting that.
1. Gain market growth each quarter.
2. Continue to increase market penetration by 1.5% per quarter.
3. Increase brand awareness of our product
Cupcake contains essential oils, which are important for the growth and
development of children. Why do we call these essential fats? Since our body
cannot produce itself. We must get them through diet. Like vitamins. They are
found in oily fish, nuts and avocados. By using of cupcakes is an easy and
tasty way to get them inside. As part of a balanced diet and healthy lifestyle,
using cupcakes plays an important contribution to the amount of essential fats
needed for the growth and development of children.
Cupcake is a good source of vitamins A, Calcium and Iron. Vitamin A
contributes to the maintenance of normal vision. Calcium and Iron contributes
to the maintenance of normal bones and teeth.
Cupcake is a delicious and healthy choice for you and your family!
Advertising is one of the best ways to communicate your message to
thousand of target customer buyers at a time. But it is very expensive tool to
communicate your message. Although we will use this tool in the beginning
but we will put large amount of our budget
on this type of communication mode.
In their ads their objective is to expose
their message to maximum people at the
right time and place. How it can be
possible? It can be possible by
researching our target customers
activities, at what media source they use,
where they spend their most of the time etc. their ads will not only get
attention of customers but it will be easy for them to understand our message.
In their ads we will motivate customers to buy our product. We will make sure
that they buy the right product. In short AIDA strategy will be followed in their
They will use Informational appeal or rational appeal. They want their
customers to know about product attributes or features of our existing
product. It is just point of difference which makes this product unique. They
want to highlight these differences as much as possible.
Sales Force Requirements, Techniques, and Management
Especially when targeting general public, so they are also going to prepare
their sales team to give awareness and convince people to buy our product.
The usage of bakery product in Pakistan is very high and Pakistan is one of
the potential markets and expected to earn revenue $334 million.
Hilal is a well-known company its market size is very big as Pakistan’s market
is very huge so they have got their product recognition and product
In environment we talk about internal and external departments, Internal are
controllable departments and external are uncontrollable departments.
There is no direct competitor exist for Hilal kake to compete it because its one
of the innovative product and give them competitive edge.
In Direct Competitor and market share
Following is Hilal’s In-Direct Competitor:
DAWN CUP CAKE
In-direct Competitor strength and weakness
Strong Market Position
Prominent Brand Name Recognition
Launched several differentiated products
Huge range of product
Positioning & Product
Divide the market into different group of buyers who share similar sets of
needs and wants.
It calls for division of market into different geographical units such as
countries, cities, regions, divisions etc.
World region Asia
Hilal is using demographic segmentation on the basis of Occupation and
education because our target markets are kids and light meal lovers.
Age 05 – 30
Gender Kids male and female
Hilal is using psychographic segmentation on the basis of social class and
Social Class Lower, Middle class to higher class
Life Style Believers, achievers, fulfilled, new
Social trend Health conscious
Hilal is using Behavioral segmentation on their basis of benefits, user status
Benefits Quality, Features and brand status
User Status First time User to loyal user
User State Exist
Attitude towards Brand Exist
Occasions/ functions Daily - evenings
APPROACH USE FOR TARGET MARKETING:
Tailor their offers and program to meet the need and wants of specific
individuals and local customer group. Hilal is using micro marketing approach
to target its customers.
Hilal has divided its target market into two categories primary consumer
Market and primary business market as they are as follows.
Kids enjoy their evening with Hilal “CupKaKe”. As our product is the main
source of essential vitamins and good fats which is fundamental for the kids
which help them in growing healthy kid.
Youngsters and students:
Our other target market will be youngsters and students who are taste lovers
because they are also the major stakeholders in general public. They also
enjoy being kid in their elder age as they missed their childhood very much.
Keeping in mind these stakeholders are also our potential consumers as they
will buy our product for themselves and for their younger family member or
Nature of the Buying Decision:
Nature of the buying decision is not so fluent in market because of less
awareness of this “Cup Kake” . Hilal had newly launch this product that’s why
its not getting brand recognition from their consumers but those who are
using it are highly appreciating Hilal “CupKaKe” because of its taste and high
availibility. But still the consumers always look at the disadvantages of the
product after purchasing it. Since no other product is offering essential
elements as Hilal “CupKaKe” do.
It’s not necessary that the buyer is the actual user of the product. Sometimes
the buyer buys it for the consumption of the user who is dependent on the
buyer. Buyers and users are equal participants of the product. Decision to buy
is not only made by the buyer, that decision can be influenced by the user.
Pakistan is the country where usage of sweet is increasing day by day. The
demographics include ages, location, gender, race, occupation, income etc.
The potential market of “CupKaKe” is kids and Cake lovers. Aged 5 to 30 and
minimum income should be 10000 and above, it targets kids, male and
female both especially to Cake lovers.
“CupKaKe” is designed for lower middle class, middle class, lower upper
class and higher class. The product is used by the people who have
experiencing, thinking nature and lifestyle. Whereas people having gregarious
and ambitious personality.
Company wants to build brand equity about the product that is a “full of
essential nutrients” and all these vital nutrients will help in growing great
and healthy kids. As this new and young generation which is our hope and
source of strong Pakistan, so we should make our children strong by this
According to BCG analysis our product is a Question mark (?). As Hilal has
introduced their Cakes in earlier time but soon they came to know that their
market is going towards decline because their Cakes were not getting
recognition and they were facing loss so they stopped the production of cakes
but now again they have started launching Cakes with innovative and creative
The overall evaluation of a company’s strengths, weaknesses, opportunities
and threats is called SWOT analysis. It is a way of monitoring the external and
internal marketing environment.
Hilal has Strong company image so ”Cup Kake” has an advantage in this
1. Hilal has got Strong brand portfolio
2. Quantity & variety is also one of the attractive aspect of Hilal so in the
case of ”CUP KAKE” , this aspect comes into existence.
3. “Cup Kake” posses’ delicious & attractive Taste.
4. Solid base of the company
5. Innovative aspects, which is again fulfilled by repositioning of ”CUP
6. Help people getting more out of life
1. High prices of products
2. Substitutes products (muffins)
3. Policy of spending for the social responsibility
4. Reduced spending for research & development
1. Changing life style of people
2. New markets
3. Increase the volume of production
4. Low income consumers
5. Help in improving people diet & daily lives
1. Competitors (Dawn Cupcakes)
2. Political effects
3. Legislative effect
4. Environmental effect
5. Obstacle faced Change in life style of people
6. Chance for price war
7. Increase in production &labor cost
Our Own “SWOT” with Respect To Promotion,
Product, Price, Placement and Brand.
High demand for fresh cakes during Ramadan, Eid and winter seasons.
Cupkake consumption is low but on a regular basis and the longer
shelf-life of the product allows for an extensive distribution strategy,
unlike fresh cakes.
CupKake allows some room for product differentiation from competitors
on quality, size and taste.
CupKake has packaged cake production facilities.
CupKake production is on a small-scale basis with very limited
production which makes it profit shrink.
Heavy dependence on imports of raw materials means supplies are
subject to Pakistan’s imports policies and production costs are subject
to price fluctuations that Hilal cannot control, because it adds some
ingredients which are imported from other countries like artificial saint
CapKake is at its initial level of introduction and has been bought not as
up to the marks so less consumption leaves machinery operating below
capacity for part of it optimum production this is one of the weakness for
CapKake as well.
Improvement of households’ economic situation should foster an
increased consumption of both CupKake.
Regular demand for CupKake exists. Increasing the basis of packaged
cake consumers will develop a new market. New marketing ideas can
be tested in a still immature market.
Current packaged imports frequently of poor quality or past expiration
date; susceptible to import substitution CupKake can grab their part of
share as well.
While a decrease or stability in the price of flour is an opportunity.
Hilal CupKake may have the flavor of Raspberry & Blueberry as well
like blueberry muffins.
If Pakistan has to import more it could results heavy dependence on
imported flour and sugar means that tariffs or exchange rate fluctuations
can increase the costs of raw materials and will directly hit the cost of
CupKake has extensive competition from imported cakes as well mainly
which come from Iran in a bulk and which are distributed through an
efficient marketing chain and are price competitive as well.
Web pages on social websites Questionnaire:
Hilal is not actively using web pages on social websites questionnaire for
cupcakes as our contact method. This is the best way to reach the people.
They are not much expensive, simple and easily answerable and there is the
interaction with the party and chances of getting feedbacks.
Strategy based on market dominance
In this context Hilal classified their product “CupKaKe” based on their market
share or dominance of an industry. Typically there are four types of market
In cupcake situation we can conclude that Hilal is market challenger who
challenges its competitor through implicating different approaches as it is
thinking of customers’ problem solution. Since cupcake is user friendly due to
its features and delicious because of its ingredients, this product will not have
problem in grabbing new customer’s attention and retaining them.
Porter generic strategy
In this strategy, Hilal is on the dimension of strategy strength which refers to
sustainable competitive advantages. Since cupcake is following product
differentiation strategy which distinguished it from its competitor, but Hilal in
this strategy is also focusing on narrow competitive scope.
There are various channels of marketing which can be used to deliver the
product from the producer to consumer. In case of our product, the indirect
channels are more convenient. In case our product demand increases with
the time we can go for intermediaries’ options as that increment might create
difficulty for us to distribute the product efficiently.
Hilal is repositioning its product only in Karachi, Lahore and Islamabad
therefore our geographic coverage is limited to only three cities of Pakistan.
Hilal has a B2C distribution channel which includes the company will deal with
the wholesalers, retailers, and the customers. It basically uses a pull strategy
for the promotion of its brands, focuses more on communication and is the
only consumer goods company that gives the lowest markups to retailers.
They are using their general distributors. There are two channels are used.
Essence of distribution lies in building a full proof value chain network that
delivers the product from where it is manufactured to the final consumers.
Some companies like to distribute their products through different wholesalers
and retailers. But Hilal will start delivering its product with it’s their general
distributors or the same distributors which deliver their whole range of
1. Prospecting. Sales representatives must find out new customers
2. Communicating. Sales representatives must have complete
knowledge about company and its product. It will help them while
3. Selling. Sales representatives must be able to close sales as soon as
possible after approaching them, presenting and after answering
4. Servicing. Various services are provided by Sales representatives to
the customers like consulting, technical assistance and so on. They
must be able to provide these services.
5. Information Gathering. Our objective is that sales representatives
must conduct market research and intelligence work.
6. Allocating. Sales representatives are able to arrange substitute
product for loyal customers when there is shortage in the Company.
Sales Force Strategy
There are lots of customers who want to buy our product from our sales
team. Our sales team will be located strategically so they reach the right
customer at the right time.
Sales force structure
We will follow market structure in which sales representatives will be trained
according to market so they will be able to push a product efficiently across
the given market.
Sales force size
The size of the sales force is dependent on the market size and number of
customers. By using formula we found that we need to have 100 sales
Finally compensation which is the most motivation factor for any employee.
We have basic pay plus commission based system. If they sell more they will
get more pay.
Now it is very important to manage sales force team. These steps are
required to manage sales force teams.
Recruiting and Selecting
Recruiting and Selecting
Recruiting and selecting the right people is very important. Our goal is to find
the people who have risk taking skills, a powerful sense of mission, a
problem-solving bent, care for the customer, and careful planning.
After selecting like-minded sales people we have training session for our
sales representatives. We tell them about company and products.
When our sales represents are ready to go in the field we give them direction.
We give our support where they want. We pay close attention on their
Sales representatives need to be motivated. They are given difficult task but
attainable. To attain those individual goals we motivate them in different
ways. Compensation is the major source. Appreciation and recognition also
help them to motivate.
Evaluation comes at last. We evaluate the result. It is difference what was set
and what has been achieved. After evaluating we have clear picture about
every employee. It helps us to pay special attention to that sales
representative who is not effective.
Contests: It is included in our action plan; we will add customer sales
promotion such as contest in which customers post videos on our website,
showing how they tell recipes in which “CupKaKe” is used in a creative and
School: Sales promotion will also be taking place in famous schools of
Karachi, Lahore and Islamabad in order to familiar the brand with the kids
which will influence their parents to buy this product.
Trade shows, exhibits: There are hundreds of trade shows; exhibits etc. are
held at expo Karachi. We are looking forward to take part in FMCG products
exhibits. These kinds of trade shows help to attract more customers.
Publicity / Public Relations: Public relation plays a very important role in
today’s marketing world by keeping it in mind we decided to pay special
attention on this channel. It is does not only help you to make strong relation
but alternately you communicate your product message.
Company magazine: In today’s world technology has changed everything.
New or updated products are being launched by different companies
frequently. People have limited information. In this regard it is very important
to update them about new product and their features in an interesting way.
Company magazine can play an important part. In our company magazine we
will not only emphasis on our product but we will include different and easy
To reach customers without using any channel is named as direct marketing.
It does not only help you to reduce you marketing cost but it also helps you to
make good relation with your customers. We will use following tools as a
Shopping: Shopping trend has been changed. People like to go for
shopping with whole families it’s now become a good outing. This way they
spend and enjoy their time with their families. We going to make our products
available at every groceries shops and big retails shops.
Social Websites: By making pages on the social websites is the
cheapest and easiest way to communicate your message. In this regard we
are focusing on collecting potential costumers email ids, this way we can get
customer’s feedback. They are our target customers and by knowing their
feedback we can also improve our product and help it growing.
Websites: Company website is a great source of marketing. Customers
are come to know about product features available on the websites.
After carrying out a market research we have found out that there exist a
need of more flavors of “CupKaKe” and packaging of the cupcake should be
changed. By this we would be able to increase the market share and increase
the consumer size. There is a competitor but it doesn’t think of introducing the
more flavors in cupcakes and improve packaging. Through market research
Hilal have found out that 90% of our target market has replied positively about
a constant NEED for such kind of a product.
Primary Data Source:
Hilal is using primary data source to collect the data. Because it introduced an
innovative product and its main function is to satisfy consumer needs by their
taste. Research has been carried out before in this regard that’s why Hilal is
using primary data source.
Hilal is using survey research to collect the data. Because surveys are the
best for descriptive research. By using survey research we want to learn
about people knowledge, belief, attitude, preference about the product.
The research instrument Unilever chooses to collect the primary data is
questionnaires. Because of its flexibility, it is the most common
instrument which is used to collect the primary data.
1) How did you come to know about Hilal – “Cup Kake” ?
a- Through stores (3/20=15% people goes for option A)
b- Through websites (0% people goes for option B)
c- Through friends (3/20=15% people goes for option C)
d- Through advertisement (14/20=70% people goes for option D)
2) What motivates you to buy this product?
a- Taste (8/20=40% people goes for option A)
b- Name (3/20=15% people goes for option B)
c- Price (4/20=20% people goes for option C)
d- Quality (5/20=25% people goes for option D)
3) What comes in your mind when you hear the name of Hilal - “Cup Kake”
4) What attributes differentiate “Cup Kake” from other cupcakes?
a- Taste (8/20=40% people goes for option A)
b- Quality (9/20=45% people goes for option B)
c- Availability (3/20=15% people goes for option C)
5) Have you ever experience any issue with Hilal – “Cup Kake”
a- Yes (If yes, then what) ________________ (0% no one goes for
No (100%people goes for option)
1. Sampling Units:
Hilal is surveying the kids, students and youth for their “CupKaKe”.
2. Sample Size:
Large sample size gives more reliable result but it is not very easy to
take everyone’s input so Hilal has selected kids, students and youth
belongs to different income level. Sample size was 20.
3. Sampling Procedure:
Hilal is using simple random sampling procedure to collect the
information because in simple random sampling every member of the
population has an equal chance to selection.