FINAL REPORT PRINCIPLES OF MARKETING DAWN BREAD

GROUP MEMBERS: SAFURA ALI (7626) AALIYA KHATOON (8158) MEHSUM MANSOOR (9321) AHMER HAMMAD ANAM FAKHAR UD DIN (9014) QURAT UL AIN PARACHA (9210)

SUBMITTED TO: MS. MALIHA MURTAZA KHAN

DATE: 13TH May, 2009 1

TABLE OF CONTENT

INTRODUCTION (PLAGIARIZED)............................................................................................................4 DAWNS PROFILE.........................................................................................................................................4 SWOT ANALYSIS..........................................................................................................................................7 STRENGTHS:....................................................................................................................................................7 WEAKNESSES:.................................................................................................................................................7 OPPURTUNITIES:............................................................................................................................................7 THREATS:..........................................................................................................................................................8 MARKET SEGMENTATION........................................................................................................................9 GEOGRAPHIC...........................................................................................................................................................9 DEMOGRAPHIC.........................................................................................................................................................9 PSYCHOGRAPHIC......................................................................................................................................................9 BEHAVIORAL..........................................................................................................................................................10 MARKETING MIX FOR DAWN FORTIFIED BREAD...........................................................................13 PRODUCT......................................................................................................................................................13 VARIETY:........................................................................................................................................................13 BREADS............................................................................................................................................................14 BUNS..................................................................................................................................................................14 SWEETS.............................................................................................................................................................14 FROZEN.............................................................................................................................................................14 OTHERS.............................................................................................................................................................15 QUALITY:........................................................................................................................................................15 DESIGN:............................................................................................................................................................15 FEATURES:......................................................................................................................................................16 BRAND NAME:...............................................................................................................................................16 PACKAGING:..................................................................................................................................................17 SERVICES:.......................................................................................................................................................17 SIZE:..................................................................................................................................................................17 THE COMPANYS CURRENT BUSINESS PORTFOLIO........................................................................17 BCG MATRIX...................................................................................................................................................17 ANSOFFS PRODUCT/MARKET EXPANSION GRID:................................................................................18 PRODUCT LIFE CYCLE:..............................................................................................................................19 LEVELS OF PRODUCT:................................................................................................................................20

PLACE ...........................................................................................................................................................23 PROMOTION ...............................................................................................................................................25 FLAWS IN MARKET MIX..........................................................................................................................27 PRODUCT...............................................................................................................................................................27 PROMOTION...........................................................................................................................................................28 RECOMMENDATIONS...............................................................................................................................28

INTRODUCTION (PLAGIARIZED) Dawn Bread with a vision to exceed the expectations of consumers with great taste products that delivers convenience, quality, safety and value is undoubtedly the market leader in fresh baked bakery products. Dawn Bread has created the distinctive competence in a market where so many other brands are also available to cater the requirements of consumers. It has introduced the concept of quality in the generic fresh bakery products industry. DAWNS PROFILE Dawn Bread a name that has come to signify quality and freshness is a product of Golden Harvest Food (PVT) LTD. A success story that was written by a family that is committed to honest to goodness enterprise and concerned with the prosperity of the country. 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 the country, a fact that speaks volumes about the credibility of the company and its products.

Prior to the establishment of Dawn Bread, the largest producer of bread products was the public sector. However, this sector could not cope with the demands of the consumer and this when, perceiving a change in the eating habits of Pakistanis, Dawn Bread was envisioned.

Beginning with the plant in Karachi, commissioned in October 1981, Dawn Bread built-up a reputation for freshness, quality and taste. Creating awareness plus a demand for bread products, the second plant was commissioned in Islamabad in January 1985. Nothing succeeds like success, so next came the plant in Hyderabad in January 1987, a year that was to also witness the establishment of another plant at Lahore, in November 1987. In 1989 we established the plant at Multan. After consolidating this 4

expansion, the sixth plant was commissioned at Faisalabad in February 1992. Now our customers can find Dawns quality and freshness from the southern tip of Pakistan to the Northern city of Peshawar.

For purpose of standardization, the company associated itself with FMBRA of United Kingdom in 1990 to bring itself in line with international standards of production, technology, machinery and formulation. 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.

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.) !!!!PLAGIARIZM ENDS!!!!

The DAWN Bread is very famous in Pakistan and it is the market leader in Pakistan for bakery products. It has launched many schemes with McDonalds and KFC. DAWN bread provides bun for the burgers to McDonalds, KFC, and MouriPan. Now DAWN Bread has spread to Lahore, Sukhur, Multan and Islamabad. It has two production units in Lahore and one production unit also in Dubai, from the above production units dawn bread covers, wide area of the Pakistan. Dawn Bread has lunched many products with McDonalds and KFC. There used to be a coupon in the bread if you take it to the McDonalds they used to give a burger free. There were many other schemes with the McDonalds that DAWN Bread has launched with them. As DAWN Breads supplies buns for burger to the McDonalds. McDonald has prepared a special recipe for buns. They have asked them to prepare the buns of the provided recipe. 5

According to Brands Awards survey, results indicate that in its category Dawn Bread was ranked highest on the attribute of Quality whereas Familiarity was confirmed to be second most appreciated feature. One can notice so many other brands with high claims in the same market but because of its perceived nutritive quality image it is the most acceptable brand in bread business. Bread is every household requirement with some what inelastic demand therefore; Affordability was not a matter of concern felt by the surveyors Availability needs improvement according to the results.

SWOT ANALYSIS STRENGTHS: Dawn Bread is among the leading brands in Bread Industry due to their quality and wide range of products It is the market leader holding about 35% of market share, catering to more than 10000 retail outlets across Pakistan According to the Brands Awards survey it is one of the most recognize product in Bread Industry

WEAKNESSES: Although it has the biggest distribution unit for any product in Pakistan, but it still ranked low in the Brands Award survey. They should try to make their product more affordable so as to cater to the masses and the reach the lower class markets OPPURTUNITIES: They should try to open more distribution channels to increase their availability in the market There is a growing demand of new bakery products and Dawn Bread should look forward to capture those opportunities to lessen the competition and maintain their spot as the market leaders in the Industry They have a huge foreign market as more and more Pakistanis are moving towards the different parts of the and their products can give them a taste of home awy from home

THREATS: One of the threats to Dawn Bread is the increasing prices of flour their primary raw material which has greatly hampered the affordability of their product With growing number of people entering this business, the competition in the industry is getting tougher and Dawn Bread should look to increase their availability and quality in order to retain the top spot in the Industry

Market Segmentation Geographic Country Country Region City or metro size Density Climate Pakistan. Karachi, Hyderabad, Multan, Lahore, Islamabad & Rawalpindi. 1,000,000-4,000,000; 4,000,000+ Urban, suburban. Southern.

Demographic Age Gender Family-size Family life-cycle 6-11, 12-19, 20-34, 35-49, 50-64, 65+ Male, Female. 1-2, 3-4, 5+ Young, single; young, married, no children; married with children; older, married with children; older, married, under18; Income Occupation Religion Race Nationality other. 15000+ Professionals; managers, officials and proprietors; students; home-makers. Any. Asian. Pakistani.

Psychographic Social class Life-style Middle class, upper middles, lower uppers, upper uppers. Achievers, strivers.

Personality

Gregarious, ambitious, fast-pacers.

Behavioral Occasions Benefits User-status User -rates Loyalty Status Readiness Stage Attitude towards product Regular occasion. Quality, service, convenience, availability. Regular user. Medium user, heavy user Strong Informed, interested, desirous, intending to buy. Enthusiastic, positive.

Dawn bread segments its market psychographic ally, Social class: Dawn Bread targets consumers from the middle class, upper middle, lower upper and upper uppers, which starts from people having a pay-scale of 15,000+, since a medium size dawn bread cost Rs.30, which roughly estimates to Rs.900 a month. Another reason of desegmenting working class is that they dont consider bread as an adequate breakfast course in comparison to Roti. Lifestyle: Achievers and strivers; people with high resources and having a reputable and stable social position in their lives. Strivers refer to people who are still striving for both ends to meet i.e. middle class.

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Personality: Gregarious, ambitious; people fond of social company, aim-oriented, fast -pacers, who dont have much time to do proper breakfasts( bread is a handy meal) and adaptors, who adapt the day-to-day trends .

And Behaviorally as, Occasions: Regular; for daily consumption. Benefits: Quality remains always the symbol of dawn-items, be it fresh and hot dawn bread or crispy rusks. Service is another benefit, at the back of pack it has got an access number to talk to dawn customer representatives. Convenience in terms of ready to eat meal and an easyopening pack. Dawn bread is the most available bread, regardless the law and order situations in the city or any other reason, which makes the brand highly available. User-status: Dawn bread targets regular users. Who daily consume the bread, for which its ideal target market is a family of 2-3 children and parents, i.e. 5 family members. A small family might buy the bread once in 3 days. User-rates: medium users refer to people consuming dawn once in a day, mostly at mornings, while heavy users are people who are consuming it for more than one time a day, for e.g. a kid having a slice at breakfast and taking dawn bread sandwich for recess. Loyalty Status: strong; Dawn bread have got a strong brand loyalty, people go and ask Dawn bread to the retailer. But the status cant be rated as absolute since people might take any other brand if dawn is not available, because of the nature of item as frequently consumed edible.

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Readiness stage: People are using any other brand or any other substitute of bread, and are dissatisfied from it, come under the segment of informed and interested, while people who are desirous and intending to buy are those who count for most of the revenue generation.

Attitude towards Product: Dawn bread is serving its customers for more than 2 decades, and is known for its reliable quality and availability, and regarded as a pioneer in its line, therefore people have got an enthusiastic attitude towards the product. And the brand has become their preference.

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MARKETING MIX FOR DAWN FORTIFIED BREAD

PRODUCT Variety Quality Design Features Brand Name Packaging Services

PLACE Channels Coverage Assortments Locations Inventory Transportation Logistics

Target Customers Intended Positioning

PRICE List Price Discounts Allowance Payment Periods Credit Terms

PROMOTION Advertising Personal Selling Sales Promotion Public Relations

PRODUCT

VARIETY: They are operating a number of bread and bun products. They categorize their products in the following manner: 13

BREADS BUNS Hot dog buns Fruity buns Burger buns Multi grains Bran bread Milky bread Plain white bread Fortified breads

SWEETS Strawberry and vanilla cakes Short cake Pineapple cake Mango cake Cup cakes

FROZEN Dawn frozen paratha

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OTHERS Dawn Rusk

QUALITY:

Dawn bread is manufactured under strict environmental and hygiene conditions. All their plants are regularly sterilized and washed. Their quality standards are ISO-9000 certified. Staff is forced to remain neat and clean. The ingredients used are of extreme high quality. They have 8 food technologists which keep a check on the quality of ingredients and make sure that quality standards are met.

DESIGN:

The design of dawn bread is squared shape slices of dawn bread loaf.

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FEATURES: The major feature and area of concern is freshness and taste of dawn bread. Freshly baked and wholesome, this bread contributes to the recommended daily intake of essential nutrients that form a major component of a healthy and balanced diet. Made from the finest ingredients.

INGREDIENTS Flour, Sugar, Salt, Vegetable, Oil, Bread Emulsifiers, Yeast, Vitamins and Preservatives.

BRAND NAME: The brand name is

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PACKAGING: Dawn fortified bread is packed in a orange color packing. They have a rising sun printed on their pack which represents dawn-early morning.

SERVICES: They have their contact numbers printed feedback and any further complaints. SIZE: Dawn fortified bread is available in 3 different sizes. Small, medium, large THE COMPANYS CURRENT BUSINESS PORTFOLIO BCG MATRIX Market Share High Low on their packaging for customers

High

STAR

QUESTION MARK

Market growth

DAWN FORTIFIED BREAD 17 Cash Cow DOG

Low

DAWN FORTIFIED BREAD AS CASH COW:

Dawn bread marks its fortified bread as cash cow in BCG MATRIX. They have 35 competitors in bread market and currently in spite of 35 competitors in market their market share is 35%. They have a huge share in bread industry. If we take the example of Pepsi in beverage industry, they have a huge market share but if we ask the general public what is your favorite drink 50% would have said Pepsi but other 50% have some other choices as their drinks. But in case of Dawn bread major population would just say Dawn bread. As far has market growth rate is concerned, bread industry does not have a high growth rate. And even if there is some growth so it is not that investment oriented.

ANSOFFS PRODUCT/MARKET EXPANSION GRID:

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EXPLAINATION: They see their dawn fortified bread as the product development strategy because they havent changed their market segmentation before launching dawn fortified bread. fortified bread. PRODUCT LIFE CYCLE: They changed their product to

Right now dawn bread is facing its maturity stage where they have a huge amount of sales and profits. Its almost about 3 decades from which dawn bread is advertising, selling and promoting their product. When we think of dawn bread, quality, freshness and availability comes in our mind. It has positioned so well the product in the minds of the customer that people demand dawn bread from retailers. Now they dont need to push their product to the customer, the demand and sales are already very high.

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LEVELS OF PRODUCT:

CORE BENEFIT: The core benefit of dawn fortified bread is that its an edible. It is used for eating purpose. It serves the purpose of an eating item in breakfast or as a snack in evening.

ACTUAL PRODUCT: Actual product includes its quality standards, design, features, brand name, and packaging. These are already explained in the beginning of product mix.

AUGMENTED PRODUCT: Following information make the product augmented:

We appreciate your feedback. For comments or queries, please contact: Golden Harvest Foods (pvt) ltd. 33, sector 24, korangi Industrial area, Karachi UAN: 111-111-999 20

Email: info@dawnbread.com Website: www.dawnbread.com

A unit of Dawn group of companies

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Price Before we evaluate the price of fortified dawn bread, we will have to understand what is price. Price is the amount of money charged for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product or service.

An effective price requires covering up the cost of the product and giving substantial profits to the producer. Besides these things, it plays an important role in creating value for the customers, as it is one of the major elements of the marketing mix.

Among several general pricing approaches, Dawn Fortified bread has not relied on cost-based and competition-based pricing approaches instead it has set its price according to the value-based pricing; this is when the prices are set according to the buyers perceptions of value rather than on the sellers cost.

The consumer price of medium size dawn bread is Rs.28, whereas the consumer price of the large dawn bread is Rs.50. Dawn Bread does come in small size, which is for Rs.10 but it is only distributed and sold in limited geographical areas, where there is demand for a small size.

The prices which dawn bread is charging are same or higher then the prices of the competitors but not lower than them because dawn bread has the highest market share of 35% as compared to bake parlor, wonder bread or harrys. Dawn bread is also sold at value-based pricing because of the brand name and market positioning that it has achieved over the years in the bakery items market. Consumers are ready to pay high prices for the brand name and quality of dawn bread. 22

Since dawn bread is not a new product in the market, it does not rely on market skimming and market penetration pricing strategies. Dawn bread uses product line pricing, which is one of the product mix pricing strategies. In product line pricing strategy, dawn bread sets the price steps between various product lines based on cost differences between the products, customer evaluation of different features, and competitors pricing. Different products in the product line of dawn bread including milk bread, brown bread and fortified bread.

In short, Dawn bread is the pioneer leading competitor who can easily afford to charge value-based pricing as its loyal customers will by dawn bread in any case.

Place Place is the third most important element of the marketing mix. Dawn bread has put extensive efforts in making the decisions regarding the channel, distribution, location, inventory, transportation and logistics of their product.

Channel is a layer of intermediaries that perform some work in bringing the product and its ownership closer to the final buyer. Dawn bread has used the channel from the producer to the retailer and then to the final consumer, that is, dawn bread being the consumer sells the product to the retailers who in return sell the product to the final buyer.

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When it comes to distribution, dawn bread has focused its placing efforts in intensive distribution, which involves setting the product in as many outlets as possible. Dawn has made sure that its bread it easily available at all retail shops, supermarkets, grocery stores, milk shops etc. They have adopted intensive distribution because bread is convenience product that is bought frequently and used in daily routine in break fast and for other purposes. Therefore, it is essential for dawn bread to supply fresh bread to all its retail outlets on a daily basis so that consumers are not disappointed and to stop consumers from buying any other bread brand incase dawn bread is not available.

In inventory management, dawn bread does not have to face problems of managing too much or too little stock. Since, bread is a product that is perishable so it has to be produced and supplied fresh on a daily routine. It puts an end to the question of keeping stock because stocking bread would make it stale and the quality will fall as well as the reputation and brand name of dawn bread.

Then, comes the transportation decision, which is also of extreme importance as it affects the pricing of products, delivery performance, and condition of the goods when they arrive at the destination. These factors have to be dealt with very carefully because they can seriously affect the customer satisfaction of dawn bread and dawn bread cannot afford to lose its market share at the hands of other competitors. Therefore, dawn makes sure that all of bakery items, that is, dawn fortified bread, dawn frozen parathas, dawn nans, dawn cupcakes, dawn rusks and dawn milk bread all are supplied to the retailers in trucks and carriers that have cooling and refrigeration systems which protect the perishable quality of dawn products.

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Promotion Promotion mix is the specific mix of advertising, personal selling, direct marketing, public relations and sales promotion.

For advertising, dawn bread uses remainder advertisements in order to remind its consumers about its existence that it is still available in the market. Persuasive and informative advertising would not be appropriate for dawn bread.

The message execution style that dawn bread uses usually uses is lifestyle because in its advertisement it shows how dawn bread fits in the breakfast and family lifestyle as the advert shows breakfast lifestyle of a happy family.

The advertising appeal on which dawn bread focuses its efforts is emotional appeal because dawn bread tries to attract its consumers by emotionally creating a bond with them. Dawn bread does advertising on the personal level as they have racks and stands in all their retail outlets.

Dawn bread does not advertise itself on a very extensive scale like its competitors like bake parlor but even then, it has been successful in taking over the highest market share of 35%. This is because dawn bread, the brand name it self has gained so much awareness that it is the first preference of the consumers.

But however, Dawn bread has already positioned itself in the minds of the consumers in such a way, that whenever the word bread comes to our mind, we immediately think of dawn bread. This product 25

awareness and positioning has also been created in the minds of the consumers because dawn bread is there in the market from a very long time.

In their promotion mix, dawn bread has not used personal selling and direct marketing promotional strategies. However, they have focused on the sales promotion largely. They have focused on sales promotion in the form of coupons and premiums, which are the goods, offered either free or at a low cost as an incentive to buy a product. For example, recently there was an offer by dawn bread, in which it offered free blue band margarine through coupons. By collecting a certain number of coupons, we could take them to the retailers of dawn bread and get a free blue band margarine in return.

Competitors Analysis:-

The major competitors of DAWN bread in the market are Bake Parlour Wonder Bread Un-branded (Local Bakery Breads) Others ( Prime, Vita, Harry, etc)

The largest share in the market is of DAWN bread. The second largest is won by Bake Parlour. Wonder bread and the local bakery breads have almost the name share where as the other breads have very low shares. 26

DAWN Bread = 40% Bake Parlour = 34% Wonder Bread = 15% Un-branded = 9% Others = 2%

Flaws in Market Mix Product

Packaging

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The packaging of DAWN bread needs to be changed according to many consumers. It needs to be changed because for the past many years its been the same and now it should be changed for some change. Promotion Advertising The Advertising campaign for DAWN Bread should be done in order for new customers to know about DAWN Bread. At the present moment there are no visible advertisements for DAWN Bread. RECOMMENDATIONS

Encourage new customers. Advertisements should be made a regular part of marketing strategies. They can do advertisements by sponsoring any cooking show, posters of dawn bread on vehicles, television advertisements.

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