Research report on K&N's
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The document is a project report submitted to the chairman of the commerce department at the University of Karachi analyzing K&N's, a frozen food company in Pakistan. It includes an acknowledgements section, executive summary, introduction, background on the company, description of the research process conducted by K&N's, data collection and analysis sections, conclusions and recommendations. The research aimed to understand reasons for decreasing sales and identified that high prices compared to competitors was a key factor affecting demand. It was recommended that K&N's work on their pricing strategy.
Research report on K&N's
- 2. Project Report on K&N‟s Submitted to Dr. Tahir Ali (Chairman, Department of Commerce) Submitted by Tazeen Azeem (M.Com, Final Year) University of Karachi March 7, 2014
- 3. Acknowledgement First of all I am grateful to the blessings of Almighty ALLAH who gave me ability to complete the project in an appropriate manner.I also gratefully acknowledge the immense help of our respected and extremely encouraging course Instructor, Dr. Tahir Ali, who remained crucial in the process of preparation of this report. I acknowledge his guidance, help and cooperation, without his cooperation this project work would not have been possible. He made my concepts clear about the project as well as about the course „‟Project Management‟‟. I also thank the K&N‟s management to provide me the data of interest. I also thank the appreciation and guidance of my parents who gave me encouragement whenever I faced any difficulty in the way of academic life and particularly for the accomplishment of this project.
- 4. Executive Summary K&N‟s is one of a kind in Pakistan and has come forward with a new perspective about frozen food in our society. K&N‟s has shown sensitivity to the Muslim requirements of halal food products and introduced its Del Line so that the people have no more doubts and are comfortable consuming the skinless sausages, cold cuts and smoked meat. The company implements the marketing strategy with immense skill and understanding about the Pakistani society and is therefore successful amongst the masses that it targets. The four P‟s of marketing are incorporated without a hitch and the products of Del Line are easy to use, reliable and easily available with great taste and reasonable prices. It has to be kept in mind that Del Line products are only aimed towards the social classes A+, A and B and so K&N‟s is successful and quite popular. Upon conducting a research it was identified that the brand name of K&N‟s has become so strong that advertising on TV is not only the reason for the purchase of the products. It is all dependent on the marketing strategies that were employed at the time when K&N‟s penetrated the consumer food items market.
- 5. Introduction In today‟s fast moving world the major issues related to society is the time. This is a factor which creates hurdles in decision making of consumers to adapt a product according to their needs. Another factor which contributes towards social setup for behaving in more specific purchases is the health of general public. According to a research conducted more people were found to be cautious about contents and taste of the products they consume. They prefer easy to use and quick to serve products in their meals. These product are mainly focusing on the working women and the hostilities. The hostilities require something that is ready to serve in minutes that is less time consuming but still full of taste and nutritious as they miss the taste of homemade food and the working women cannot get time to prepare meals, so these product provides them the solution to their problems. But increasing prices are reducing its demand and shifting consumers to other brand.
- 6. Company‟s background K&N‟s is the founding pillar and beacon for Pakistan poultry industry. Building on years of poultry expertise, and a commitment to food-safety, K&N‟s integrated all poultry production activities under one umbrella to ensure quality and food-safety by managing and controlling all stages of production. The year 1964, Pakistan a young independent nation forging ahead towards a dream: self sufficiency in food production. Malnutrition remained a major problem and one out of four children died attaining at the age of five. 80% of ailing children were affected with disease caused by protein, vitamin and mineral deficiency. Poultry production, the quickest and least expensive way of filling the protein gap was planned to overcome malnutrition. Backyard poultry farming had to graduate to a more professional level. January 1964, a young man, Khalil Sattar, still a college student, had the vision to foresee a need to establish a poultry farm. His interest led him to start a small broiler farm of 1,000 chicks. Little had he known this flock was to become the foundation stone of K&N‟s. This was the simple, inspired and nationalistic beginning of K&N‟s with a single-minded objective of providing better nutrition for Health and Happiness of the Nation.
- 7. Research Process By K&N’s Research introduction Research comprises "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications.” However, the main reason for the research on K&N‟s was to get the feedback from the targeted customers about the specific issue mentioned below. Problem statement The problem which is faced by K&N‟s currently is difficulty in capturing new target market and diversification of consumers. Literature review “Although little research has been done on the influence of K&N‟s on the public perception of purchasing, researchers have investigated how products and their prices contribute to the general public‟s behavior. In general the public perception of products is strongly influenced by prices.” Hypothesis Sales is decreasing due to competitors‟ offerings at low price Dependent variable: sales Independent variables: low price by competitors Competitors 1) Simply Sufi (chicken products only) 2) Menu (chicken & sea food) 3) Mon Salwa (chicken & sea food) 4) PK (chicken,beef & mutton products)
- 8. Methodology Descriptive research Descriptive research is a type of research method that is used when one wants to get information on the current status of a person or an object. It is used to describe what is in existence in respect to conditions or variables that are found in a given situation. In the light of above instructions, it resulted that the people respond in a very positive way to the products of K&N‟s. There is a very high market potential for the products of K&N‟s. Through research it was found that pricing was an issue that needed to be considered. Sample plan The sample plan population was divided into mutually exclusive groups such as students, teachers, business oriented and job oriented people. It was convenience sample as well as divided mutually exclusive groups were approached as convenient. We distributed 500 questionnaires among different age groups or segments and 20 among the retailers (shopkeepers). Research instrument Questionnaire was used as the research instrument as they were the easiest way to gather required information. (See appendix for sample questionnaire) List of aspects high price consumer diversification competitors electricity problems
- 9. Data resources Primary data: 1) customers 2) retailers 3) Relationship Sales Managers (RSM) Secondary data: [email protected] [email protected] http://www.kandns.com
- 10. Data Analysis Frequency Distribution table (consumer questionnaire) Frequency Distribution table (retailer questionnaire) Q#. a b C d e Total 1 115 110 90 95 90 500 2 190 195 110 15 0 500 3 70 100 120 115 90 500 4 50 115 100 120 125 500 5 315 185 0 0 0 500 6 130 250 120 0 0 500 7 80 130 150 140 0 500 8 310 5 50 120 15 500 9 320 104 76 0 0 500 10 40 310 125 20 5 500 1620 1504 941 625 325 5000 Q#. a b C d e Total 1 0 4 5 2 9 20 2 0 0 10 7 3 20 3 0 8 6 5 1 20 4 1 3 9 7 0 20 5 0 2 3 4 11 20 6 3 15 2 0 0 20 7 0 1 2 6 12 20 8 14 6 0 0 0 20 9 13 6 1 0 0 20 10 2 16 2 0 0 20 33 61 40 31 27 200
- 11. Data analysis of consumer questionnaire On the bases of prevailing situations 500 questionnaires were filled from the consumers which very helpful for the verification of the hypothesis and the result is discussed below. Q2: The prices of K&N‟s are, a) Very high b) High c) Average d) Low e) Very low Explanation: According to the survey the prices of K&N‟s are very high and I need to b curtail. Q7. The top most competitor of K&N‟s is, a) Simply Sufi b) Menu c) PK d) Mon Salwa Explanation: Survey results that the K&N‟s is challenged by PK, therefore it should work more on its competitive advantage. Q10. K&N‟s should work more on their, a) Quality and taste b) Pricing strategy c) Line extension d) Packaging e) Availability Explanation: Prices should be curtail to compete in the market. The prices of K&N's are very high high average low very low Top most competitor of K&N's Simply Sufi Menu PK Mon Salwa K&N's should work more on their quality & taste pricing strategy line extention packaging
- 12. Data analysis of retailer questionnaire 20 questionnaires were filled by retailers to make the research more authentic. The result of few questions is shown and discussed below, Q1 The most selling frozen food products are of, a) Sufi b) Menu c) PK d) Mon Salwa e) K&N‟s Explanation: K&N’s is the most selling brand. Q6: The prices of K&N‟s as comparable to other competitors are, a) Very high b) High c) Average d) Low e) Very low Explanation: Due to high prices sales is a bit effected although the target market is highly potential. Q9: The demand for K&N’s may be effected by its, a) Competitors b) Prices c) Quality d) Availability e) Packaging Explanation: Demand is highly effected by the increasing number of competitors. The most selling frozen products are of, Simply Sufi Menu PK on Salwa K&N's The prices of K&N's comparable to competitors are, very high high average low The demand for K&N’s may be effected by its Competitors prices quality availability packaging
- 13. Q10. K&N‟s should work more on their, a) Quality and taste b) Pricing strategy c) Line extension d) Packaging e) Availability Eplanation: K&N’s should work o their pricing strategy as it is highly effecting to capture new market/prospects. K&N’s should work more on their, Quality and taste pricing strategy line extention packaging availability
- 14. Conclusion of the Research We have got a positive feedback and good response by our targeted market segments. As now a day‟s time is money even ladies are working in offices so they are in search of products that are a complete meals for their family and are time saving, with the increase in the business in the schedules of people the trend to ready to serve meals is also increasing so A product of K&N‟s has a scope in market as K&N‟s has the largest market share in ready to cook and ready to serve products. However, prices are effecting its sales.
- 15. Recommendation K&N‟s should work on their pricing strategy due to which the demand is highly effected and also follow the integrated growth by introducing Beef product line or other product lines to earn more profit and achieve its targeted sales.
- 17. K&N’s Annual Report Company’s history K&N’s, a founding pillar and beacon for Pakistan‟s Poultry Industry started in 1964 with a single minded objective of providing better nutrition for health and happiness of the nation. Building on years of poultry expertise and commitment to food-safety, K&N‟s integrated all poultry production activities under one umbrella to bring yousafe and healthy chicken by managing and controlling all stages of production. Products K&N‟s markets layer and broiler hatching-eggs, layer and broiler, day-old chicks, poultry feed, processed chicken and ready-to-cook & fully cookedfood. I selected only the ready to cook category of K&N‟s which include Nuggets, Croquettes, Chicken Tempura, Burger Patties, Kofta, Combo wings, Fun nuggets, Hot Tenders, Chapli Kabab, Harey Bharey Nuggets and Tender Pops. Distribution Products are stored at -21ºC to maintain freshness. Packed products are moved into K&N‟s sanitized refrigerated trucks for distribution to ensure uncompromising quality control. K&N‟s chicken products are available at K&N‟s Chicken Stores and leading retailers and also delivered to quality and food-safety conscious institutions such as hotels, restaurants, airlines, clubs and international restaurant chains. Market share Market share of K&N‟s is almost 70% (on average) in ready to cook food category. At Hyper Star almost 80% people buy K&N‟s products. At CSD almost 60% people buy K&N‟s products and at Macro almost 75% people buy this brand. This is the highest market share and at this time it is the leading brand in this category. Where the brand stands? The brand is growing rapidly day by day due to the customer satisfaction and the product is according to the customer‟s requirement as well as they are targeting different segments of the markets like children and the vegetarians. Positive points of its product From the customer view point K&N‟s is providing healthy food. It is easy to cook especially it facilitates the working women because they don‟t have much time to make all those things in
- 18. home. They are targeting the children as well through fun nuggets so women are using for their children lunch. This brand provides the hygienic food to its customer that build trust in the customer. Moreover the taste of K&N‟s food is superior then others. These attributes are increasing its‟ market share and this brand is growing. Competitors Competitors of K&N‟s are Menu and Mano salwa. Both of these brands couldn‟t make its brand image as strong as K&N‟s has. Secondly they are not providing that level of customer satisfaction that K&N‟s is providing. Target market The company is targeting different age groups as well as different income groups. Their prices are normal so even a middle class person can afford it. They are targeting elite upper middle and middle class. On the age basis, they are targeting children as well as the young people. Conclusion K&N‟s is a largest selling brand in ready to cook food category. They are focusing more and more on the fully cooked products for the ease of customers with the special focus on the hygiene factor. It is the brand that provide value product to its customer. There market starts with the customers and end with the customer. This is the main reason for their market share and market growth.
- 20. Questionnaire(consumer) We are the students of M.Com Department of Commerce University of Karachi. We are conducting research on the K&N’s If you kindly fill out this questionnaire. The information provided by you will be used for academic purpose only. Thank You. Name: _____________________ Designation: _________________ Organization:________________ Q1: The products of K&N‟s are, a) Excellent b) Satisfactory c) Average d) Unsatisfactory e) Poor Q2: The prices of K&N‟s are, f) Very high g) High h) Average i) Low j) Very low Q3: The most purchased products of K&N‟s are, a) K&N's Processed Chicken b) Ready-to- Cook Products c) Fully Cooked Products d) K&N's Deline Products e) STOK Q4: Discounts offered by K&N‟s are, a) Very high b) high c) Average d) Low e) Very low
- 21. Q5: The description on packaging is, a) Sufficient b) Average c) Unsufficient Q6: K&N‟s products are mostly used in, a) Breakfast b) Lunch c) Dinner Q7: The top most competitor of K&N‟s is, e) Simply Sufi f) Menu g) PK h) Mon Salwa Q8: Most advertisement is done by, f) K&N‟s g) Simply Sufi h) Menu i) PK j) Mon Salwa Q9: The availabilty of K&N‟s products is, a) Easy b) Average c) Difficult Q10: K&N‟s should work more on their, f) Quality and taste g) Pricing strategy h) Line extension i) Packaging j) Availability
- 22. Questionnaire (retailer) We are the students of M.Com Department of Commerce University of Karachi. We are conducting research on the K&N’s If you kindly fill out this questionnaire. The information provided by you will be used for academic purpose only. Thank You. Name: _____________________ Designation: _________________ Organization:________________ Q1: The most selling frozen food products are of, k) Sufi l) Menu m) PK n) Mon Salwa o) K&N‟s Q2: K&N‟s is sold because of its, f) Price g) Quantity h) Quality & taste i) Availability j) Packaging Q3: The most sold products of K&N‟s are, f) K&N's Processed Chicken g) Ready-to- Cook Products h) Fully Cooked Products i) K&N's Deline Products j) STOK Q4: The top most competitor of K&N‟s is, i) Sufi j) Menu k) PK l) Mon Salwa
- 23. Q5: The most in-store promotional activity is done by, a) Sufi b) Menu c) PK d) Mon Salwa e) K&N‟s Q6: The prices of K&N‟s as comparable to other competitors are, k) Very high l) High m) Average n) Low o) Very low Q7: Discounts offered by K&N‟s is, f) Very good g) good h) Average i) Low j) Very low Q8: Distribution channel of K&N‟s is, a) Efficient b) Average c) Inefficient Q9: The demand for K&N‟s may be effected by its, f) Competitors g) Prices h) Quality i) Availability j) Packaging Q10: K&N‟s should work more on their, k) Quality and taste l) Pricing strategy m) Line extension n) Packaging o) Availability