Kolson REPORT

7/23/2019 Kolson REPORT

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TABLE OF CONTENTS PAGE NUMBER

1. Letter of Transmittal..2

2. LETTERS OF ACKNOWLEGMENT3

3. KOLSON HISTORY AND BACKGROUND44. ORGANIZATION STRUCTURE..6

5. MISSION STATEMENT7

6. COMPANY OBJECTIVES.7

7. PRODUCT LINE AND CATEGORIES.8

8. Total Organized Biscuits Industry..9

9. MARKETING SEGMENTAION10

*TARGET MARKETING..11

* POSITIONING..11* BRAND POSITIONING.11

* BRAND PERSONALITY11

* MARKET SIZE.11

10. MARKET SHARE1211. MARKETING MIX..13

12. PRODUCTS..15

13. CRITICAL ANALYSIS..21

14. MARKETING STRATEGY..23

15. MARKETING OBJECTIVES..24

16. RECOMMENDATION25


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letter of Transmittal

To:

From:

Date:

INFORMATIVE REPORT ON KOLSON(BISCUITS)'

We were authorized to submit an informative report on one of the

Pioneer food manufacturing and processing industries in Pakistan

'Kolson' on June 24th 2008. We here by submit the report.

We carried out preliminary research by interviewing Mr.Miraj

Hussain ABM of Kolson's biscuits cookies and cereals products

and some research was carried out through questionnaires. This

research gave us an over view of Kolson's organizational culture,

level of market penetration, its responsibilities, commitments and

its position among competitors.

We enjoyed working on this report as a team. It gave us an

exposure to the market and the organization.

Thanking you.

Sincerely,

Members of Group # 2


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LETTERS OF ACKNOWLEGMENTFIRST OF ALL WE WOULD LIKE TO ACKNOWLEDGE THE SERVICES AND

FACILITATION OF MR.MIRAJ HUSSAIN, BRAND MANAGER KOLSON

COOKIES, CEREALS AND BISCUITS AT FED GLOBE INTERNATIONAL. WE

HAD INTERVIEWED HIM FORM THE SAKE OF THE PROJECT AND IT WAS

REALLY NICE OF HIM TO TAKE OUT TIME FOR US FROM HIS BUSY

SCHEDULE. HE BRIEFED US UPON DIFFERENT MARKETING STRATEGIES

KOLSON IS PURSUING WITH REGARDS TO ITS PRODUCTS, AND ALSO

ABOUT KOLSON'S FUTURE PALNS.

WE ALSO THANK OUR COURSE INSTRUCTOR, MS FARAH SAJID FOR HER

GUIDANCE AND INSTRUCTION WHICH ACTUALLY MADE THIS REPORT

POSSIBLE. WITHOUT HER HELP, WE WOULD NOT HAVE BEEN ABLE TO

COMPLETE THIS ACADEMIC WORK.


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KOLSON HISTORY AND BACKGROUND

Ever since its inception in 1942, as on today, Kolson enjoys the

distinction of being one of the Pioneer food manufacturing andprocessing industries in Pakistan. The name of Kolson is

synonymous with dynamic an innovative food products.

The Philosophy of the company is based on self-commitments to

offer consumers greater choice of exclusive quality products. In

doing so, the company has, in true since, evolved its own

marketing style to establish a more effective relationship with

consumers.

Being a food manufacturing the Kolson understands the

responsibility to provide consumer high quality products and

selection of best ingredients that add to the nutritional value of our

product.

Kolson brands appeal to an extraordinarily diverse array ofconsumer. The consumer segment starts from as young as one year

old who starts developing a taste for snacks and goes all the way

up to older age people who consume pasta and breakfast cereals as

part of their healthy diet. In consumer promotions, designed to

enhance the Kolson image, they therefore, try to satisfy the

growing needs of all our target segments.

Kolson is proud to be the pioneer in Pasta production in Pakistan.

More the 50 years back nobody could think of Pasta as forming a

food habit being an absolutely new food concept for populace of

Pakistan. At present company is market leader in Pasta products

such as Spaghetti, macaroni, Lasagne, Noodles and Vermicelli.


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Kolson also has a leading edge in manufacturing breakfast cereals

that are innovative and extremely popular among the consumers of

all ages.

As company hierarchy enters to the third generation, it befittingly

coincides with yet another stunning product, an innovative range of

high-class Biscuits. Jam Hearts, Cream Hearts, Katch and Bravo,

being sandwich, crackers and traditional bakery biscuits

respectively which are already fetching consumers' recognition and

appreciation because of its unique and smacking flavor and texture.

The whole range of Kolson products is made by using latest

German, Dutch, Swiss and Italian etc latest technology and process

to back prime raw materials. The raw materials are procured from

the leading available sources in Germany, Denmark, Belgium and

Nederland etc. The high quality Pakistani wheat products, procured

from select bunch of millers, are pivotal in determining the final

outcome of high quality products.

As the global economy is taking a different turn in its outlook an

demand, Pakistan can not afford to lag. Kolson is prepared to

accept the challenge to be always one step ahead of changes in

offing. This is our simple pr5omise to our die-hard and prospective

consumers in Pakistan.


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ORGANIZATION STRUCTURE

MARKETING DEPARTMENT STRUCTURE:

General Head Marketing

Brand Manager

Mr.Zeeshan

ChipsBrand Manager

Mr.Hatim

Slanty,PastaBrand ManagerMr.Saqibuddin

Biscuits,cookies,

cerealsABM

ABM ABMMiraj

Hussain

7-Boaes of Directors

8- GMS4- GAS

RSMASMTSOSOSRDR


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MISSION STATEMENT

To provide a one shop to promote socially responsible life style

products while growing the global market with the conscious.

COMPANY OBJECTIVES

The fundamental objective of Kolson is maximum growth in the

food industry.

A recent example of the achievement of such an objective was to

extend their brand into a completely different category in late 2004

when they diversified their food line by entering the biscuit

market.

The long term objective pursued by the company is to be on a

constant lookout for new competitors and to make efforts to nip

them in the bud, so that in the long run they do not pose as a threat

to Kolsons market share.


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PRODUCT LINE AND CATEGORIES

- SLANTY - TWITCH- TWINKLE Cheese balls - SMART CHIP- CRINKLE PATATO - FRIEND CHIP- PATATO CHIPS - SNACKER- LONDON STICKS- CHATA PATA RINGS

- KATCH- BRAVO- JAM HEARTS (Vanilla)- JAM HEARTS (Chocolate)- CREAM HEARTS- CREAM HEARTS (Chocolate and Vanilla)

- CHOCO WHEELZ- FROOT WHEELS- COCOA BEANS- HONEY RICE CRISPIES

- MACARONI- LASAGNE- NOODLES- SPAGHETTE

- VERMICELLI

OBJECTIVES - VERMICELLI

- VERMICELLI
http://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.htmlhttp://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.htmlhttp://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.htmlhttp://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.htmlhttp://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.htmlhttp://www.kolson.biz/products/pasta.htmlhttp://www.kolson.biz/products/cereals.htmlhttp://www.kolson.biz/products/snacks.html


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Assumptions:

1. The major growth in the industry will be brought by organized players.2. Economical & Political conditions will remain stable.3. Country will maintain the present & healthy growth rate.4. Kolson will also increase its efforts for further penetration but the focus

will be more on the trade push.

KOLSON-FG

A Fabled success story of cooperation & trust.

Kolson-FG Joint operations is a unique example of CUSTOMER-VALUE CHAINintegration which provides for a win-win solution to all the stake holders.

Fed globe provides all the promised services & enjoys the position of a strategypartner for Kolson in Pakistan.

Total Organized Biscuits Industry

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MARKETING SEGMENTAION

Kolson segmented the market according to Demographic, Geographic, Psychographic

and Behavioral.

DEMOGRAPHIC

In demographic marketing segmentation of the Kolson divide market age wise, genderwise, according to family size, family life cycle, income, generation.

PLAN: Cookies, Bravo, Kids Mobile, Movements.

12 to 40 years.

Male and Female

Young, Adults and Teens

Cream: Jam Hearts, Cream Hearts.

1 to 28 years

Kids and Teens and some times old People

Cracker: Katch18 to 35 years male and female both, young and adults.

GEOGRAPHIC

Kolson sell its biscuit nationally and Internationally.

PSYCHOGRAPHIC

Kolson offer its Biscuit to lower class and to middle class, working class.

BEHAVIOURAL

Kolson biscuits are in regular consuming product thats why Kolson make it available

every where as buyers buy Kolson biscuits easily and it gives good quality in biscuit at

affordable price.


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TARGET MARKETINGKolson target to all age of people.

POSITIONING

Kolson positioned its biscuits as a full of energy, young adults, remetiz,

delicious and innovative family and Party biscuits.

BRAND POSITIONING

Bravo when we hear the name of Bravo it indicated the full of energy anddaring biscuits.

Jam Heart indicates the biscuits for Lovers and Teen agers.

Mobile name of biscuits indicates is a kid's biscuit.

BRAND PERSONALITYKolson has a strong brand personality that's why it supports the othercategories brand.

MARKET SIZE

Kolson biscuits are sold in all over the Pakistan nationally and now a Kolson

biscuit enters in International market like USA, Canada.


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MARKETING MIX

PRICE: (All Products have Same price)

Ticky Pack: PKR 4.00

Half Roll: PKR 12.00

Family Pack: PKR 22.00

PRICING APPROACHES

Kolson use competition base prices approaches for set its price strategy.Kolson sets its prices strategies available in the market.

PLACE

Kolson considers its distribution network to be one of its key strengthsbecause it is highly effective at supplying the various Kolson products at the

retail outlets. They have outsourced their marketing and distributionoperations to Fed Globe International.

Kolson biscuits can be found at nearly all retail outlets throughout Pakistan.

They have a distribution network in all the major cities in Pakistan.

Kolson is targeted at late teens and the youth. This is also evident from their

advertisements and television commercials. Kolson biscuits see itselfcompeting mainly with its closest rival Bakery and the market leader

Sooper. It also sees the non branded egg and milk cookies as threats to itsmarket share.

CHANNELS OF DISTRIBUTION

General Stores, Wholesale market departmental and super stores, i.e.

increased efforts to penetrate the market.


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PROMOTIONAL ACTIVITIES

The company is aware and does quarterly analyses about who purchases

what products of Kolson. The company evaluates the trends in the markets;

where there are heavy sales and where there are no or negligible sales. Oncethey have analyzed their strong and weak sales areas they decide which

promotional tools to apply.

The promotional tools that are used by Kolson are

BTL Activities Third Party Contracts (Mostly Pegasus) Trade Gatherings Road Shows Club Dinners Conducted in Presence of concerned Sales Officer

ATL Activities Advertising Agency is Brand Partnership Media, Billboard Campaign Print Campaign Etc

Media advertisements and billboards

Kolson markets its products through heavy advertisements. Most of the

television advertisements focus on its snacks and biscuits. Many billboards

across the city display Kolson products. The advertisements target all agegroups and income levels.

Trade push

When trade push is employed a good display position is sought after at

outlets. If there is money to be invested the common rule of eye level is buylevel is employed.

jo cheez dikhti hai woh bikti hai!


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PRODUCTS

Name: Katch

Category: Cracker

Packaging: Ticky Pack (4per pack) & Half Roll & Family Pack

1 Box: 115gms (4.06 oz)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, and Oil, Invert Syrup maltExtract, Skin Milk Powder, Yeast, Salt Raising Agents, Natural Enzyme,Emulsifying Agents.

Nutrition Chart (Per 100gms)

Energy 2030KJ

Protein 9.5 gmFat Total 32.1 gm

Carbohydrates:

Total 71.1

Sugar 10.0

Cholesterol 4.2 mgDietary Fiber 1.1 gm

Sodium 271 mg


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Name: Bravo

Category: Egg & Milk Biscuits

Packaging: Ticky Pack (4per pack) & Half Roll Packaging:

1 Box: 24gms x 24 pkt (0.85 oz x 24)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, Skim Milk Powder, Fresh

Eggs, Cocoa Powder, Salt Emulsifying Agent, Artificial Food Colour &Flavours.


Energy 2133KJ

Protein 7.5 gm

Fat Total 27.5 gm

Carbohydrates:

Total 72.9 gm

Sugar 25.8 gm

Cholesterol 17.2 mg

Dietary Fiber 0.180 gm

Sodium 271 mg


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Name: Jam Hearts (Vanilla Cream with Jam Topping)

Category: Cream Biscuit


1 Box: 115gms (4.06 oz)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, Invert Syrup, Skim Milk

Powder, Salt Maize Starch, Raising Agents, Emulsifying Agent, ArtificialFood color and Flavors, Strawberry jam.


Energy 1563KJ

Protein 6.3gm

Fat Total 15.6 gm

Carbohydrates:

Total 63.0gm

Sugar 31.1 gm

Cholesterol 9.1 mg


Sodium 481 mg


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Name: Jam Hearts (Chocolate cream with jam Topping)



1 Box: 115gms (4.06 oz)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, Invert Syrup, Skim Milk

Powder, Salt Maize Starch, Raising Agents, Emulsifying Agent, Artificial

Food color and Flavors, Strawberry jam.Nutrition Chart (Per 100gms)

Energy 1563KJ

Protein 6.3gm

Fat Total 15.6 gm

Carbohydrates:

Total 63.0gm

Sugar 31.1 gm

Cholesterol 9.1 mg


Sodium 481 mg


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Name: Cream Hearts (Sandwich Biscuit with Chocolate & Vanilla)



1 Box: 115gms (4.06 oz)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, Cocoa Powder, Invert

Syrup, Glucose Syrup, Honey, Skim Milk Powder, Salt Maize Starch,Raising Agents, Emulsifying Agent, Artificial Food color and Flavors.


Energy 2119KJ

Protein 7.0gm

Fat Total 21.5 gm

Carbohydrates:

Total 67.4gm

Sugar 35.2 gm

Cholesterol 9.2 mg


Sodium 519 mg


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Name: Cream Hearts (Double Cream)



1 Box: 115gms (4.06 oz)

Ingredients:- Wheat Flour, Sugar, Vegetable Fat, Cocoa Powder, Invert

Syrup, Glucose Syrup, Honey, Skim Milk Powder, Salt Maize Starch,Raising Agents, Emulsifying Agent, Artificial Food color and Flavors.


Energy 2119KJ

Protein 7.0gm

Fat Total 21.5 gm

Carbohydrates:

Total 67.4gm

Sugar 35.2 gm

Cholesterol 9.2 mg


Sodium 519 mg


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CRITICAL ANALYSIS

SWOT ANALYSIS

STRENGTH

The competitive edge identified for Kolson is their product innovation. Their

idea of innovation is reflected in their creation of unique products. Bravo is

unique in that it has a thin chocolate layer that runs in the middle and theshape is also a bit different from any other egg and milk biscuit in the

market.

Another strength identified is the supply and distribution channel. They areable to achieve a strong distributor network because their well establishedproducts like Slanty and Spaghetti also utilize the very same networks.

Kolson also has regional warehouses in the major cities like Karachi,Lahore, Quetta and Peshawar.

WEAKNESS

One weak area that we can identify is their lack of expertise and experience

in the biscuit market. Other key players in the biscuit market such as LU andPeek Freans have years of experience in the field of confectionaries and

have created a brand image. Customers do not necessarily think of biscuitswhen they hear of Kolson. Another reason for this is the success of Slanty

which has created a strong association of chips manufacturer with Kolson.

OPPORTUNITY

According to market growth research conducted by Kolson the biscuit

industry is expected to grow b 50% in the next five years. This growth canbe attributed to opening u of new markets, especially in the rural areas where

branded biscuits are struggling save for Tiger. The way Tiger biscuitsachieve this is by including more biscuits per pack then its rivals.

Kolson can penetrate into these rural areas and possibly lower down its

prices or include more biscuits in the same pack. They would also need to


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adjust their biscuit's taste and price for the rural markets possible by

introducing a variant of the same biscuit in a different packaging.

Kolson can also take the opportunity of promoting its biscuits as a better and

healthy alternative to other snack foods. Their biscuits contain nutritious likemilk and egg and so Kolson can promote that as well.

THREATS

Three main threats have been identified. The first and most pertinent threat

is the fast growing and highly competitive local industry. The mail players

are Peek Freans, LU, Bisconi, and the unbranded industry. Although the

unbranded industry is not so much successful in the metropolitan areas, it

has managed to give the branded products a very tough time in the smallervillages.

Second area Kolson must be careful about is the emerging threat form

International businesses that are establishing snack operations in Pakistan.

So far a significant competitor in the egg and milk market has not risen fromthe Multi National Corporations but it is just a matter of time that they start

looking in this lucrative segment which is about grow even more.

The last threat that can be identified is related to the overall biscuit industry.It results from the fast growing snack food industry (other then biscuit)

which is trying to fight for the customer money. A person, when he will

have a choice, may spend the money upon chips or nimco rather thenspending on biscuits.


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MARKETING STRATEGY

TARGET MARKETINGEvery member of a family, i.e. mass marketing

POSITIONING

Kolson needs to be positioned as a delicious and innovative 'family' biscuit.The concept of family is absent from Bravo advertisements, unlike its other

competitors, LU, ABM.

PRICE

The current pricing strategy of Kolson's biscuits is competition based. It is

fair enough, because a higher price may take away its urgent market shareand a lower price would make the customers think that it is a cheap product.

DISTRIBUTION OUTLET

General stores, wholesale markets, departmental and super stores, i.e.

increased efforts to penetrate the market.

ADVERTISING

Developing a new advertising campaign that supports the positioning

strategy. Kolson should emphasize on the concept of 'family product' in their

TV commercials;

Moreover, they should highlight the innovative shape and multi-color

elements through their advertising channels.

Increase the advertising budget by 12%. Presently, Kolson is spending only10 to 12% on Bravo. This is a fairly low percentage of expenditure.


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SALES PROMOTIONS

Kolson should come up with new variants in the Biscuits brand. The newvariants may be new flavor some colors. This may attract the target market

and promote the sales.

Kolson should also add a "Family Size" packet of its all biscuits to its

product line. As the family size packet is cheaper to purchase (in per biscuitterns), customers would be attracted to buy them.

MARKET RESEARCHConduct through market research to understand the consumer-choices andbehaviors. Try to figure out what where Kolson lags, as compare to its

competitor, LU, ABM.

Kolson should ask the customers about what changes and additions in terms

of taste, size, packaging, etc, would the customers like to see in its biscuits.

MARKETING OBJECTIVES

To increase Kolson's market share to 11% of the entire Biscuit industry in the future.


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RECOMMENDATION

1. Kolson has not been so active in terms organizing or sponsoring

social events. We think that it should take a step forward by

sponsoring events like sports, concerts, and academic events. The

reason we chose academic events is Kolson currently positions

Bravo as product for teens and youth, which is quite evident from

its TV commercials. In order to reinforce positioning, it should

sponsor academic events organized by college and universitystudents, who in turn are its target market.

2. Furthermore the Kolson should also actively involve themselves

through all the channels where it could connect to families. Since

Bravo in broad sense will be targeted to the whole families and

Kolson is a family brand with products for every member of the

family.

3. Another program we would like to initiate is that Kolson can

initiate a marketing campaign in rural areas. We know that the

rural area market has a lot of potential and some local unbranded

companies are operating very successfully there. None of the

branded company has really tapped that market segment, and

Kolson can be the first one to do so. This would give then a

competitive edge over other players in the market, and also ensure

a rise in sales.

Documents

Kolson REPORT