Peek Freans

Farmhouse Cookies
Module 1
Profile of the market area and justification of target market
of choice for the biscuit brand, Farmhouse Cookies by
Peek Freans, a part of English Biscuit Manufacturers (Pvt.)
Ltd
Submitted By:
Ammar Hameed
Muqtadir S. Kazi
Zain Malik
Zohaib H. Shah
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Table of Contents
Market Area Profile: Lahore ...............................................................................................................1
Segmentation ....................................................................................................................................1
Age: ........................................................................................................................................................... 1
Income: ..................................................................................................................................................... 2
User type: .................................................................................................................................................. 2
Competitive Structure ........................................................................................................................3
Leader: ...................................................................................................................................................... 3
Challenger: ................................................................................................................................................ 3
Followers: .................................................................................................................................................. 4
Niche: ........................................................................................................................................................ 4
Recent Trends & Market Opportunities ..............................................................................................4
Economic Trends ....................................................................................................................................... 4
Demographic Trends ................................................................................................................................. 5
Psychographic Trends ............................................................................................................................... 5
Target Market ....................................................................................................................................6
Background of the Problem ..............................................................................................................8
Problem Statement ...........................................................................................................................8
Research Objectives ..........................................................................................................................8
Hypothesis ........................................................................................................................................9
Research Plan ................................................................................................................................. 10
Methodology ........................................................................................................................................... 10
Sample Size............................................................................................................................................. 10
Scales ...................................................................................................................................................... 11
Controlled Settings.................................................................................................................................. 11
Tools for Data Interpretation .................................................................................................................. 11
Research Findings .......................................................................................................................... 12
Focus Group Findings ............................................................................................................................. 12
Questionnaire Findings ........................................................................................................................... 14
Consumer Profile based on Questionnaire Findings: .......................................................................... 14
Consumer Purchase Decision Process ............................................................................................. 14
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Relevant Needs ....................................................................................................................................... 15

Informational Search Process.................................................................................................................. 15
Alternative Evaluation & Purchase Decision.......................................................................................... 16
Social Influences & Reference Groups ............................................................................................ 17
Regression Results .......................................................................................................................... 18
Product Concept & Branding ......................................................................................................... 19
Product Strategy ............................................................................................................................. 20
Pricing Strategy .............................................................................................................................. 21
Promotional Mix ............................................................................................................................. 22
TV advertisement .................................................................................................................................... 22
Print advertisement ................................................................................................................................. 22
Outdoor advertisement ............................................................................................................................ 23
Channels of distribution ................................................................................................................. 24
Appendix ........................................................................................................................................ 25
Exhibit 1: New Farmhouse Logo and & Tag Line .................................................................................. 25
Exhibit 2: Print Advertisement (Pre Re-launch) ..................................................................................... 25
Exhibit 3: Print Advertisement (Post Re-launch) ................................................................................... 26
Exhibit 4: Storyboard for TV Advertisement (1) .................................................................................... 27
Exhibit 4: Storyboard for TV Advertisement (2) .................................................................................... 28
Exhibit 5: Current Distribution Channel ................................................................................................. 28
References....................................................................................................................................... 29
Appendix ......................................................................................................................................... 31
Questionnaire Results: ............................................................................................................................ 31
Focus Group Discussion Guideline .......................................................................................................... 37

Market Area Profile: Lahore

Lahore is the second largest city in the country with a total area of 1,772 square kilometers and a
population of over 10 million and due to population growth and urbanization, has been
increasing annually at a rate of 4.1 %.
The citys economic strength is its large urban population and advanced infrastructure. Lahore
hosts a multitude of commercial businesses all across the city with tourists flocking to the city
from all over the country. The city has also seen an increase in income over the last few years,
resulting in greater spending.
With population trends on the increasing side and the per capita income rising, the country
provides a great consumer market for all kinds of goods, including the biscuit industry.

Segmentation
Segmentation is conducted to divide one large market into groups of people with similar
characteristics; these are known as customer segments. For the biscuit industry, four bases of
segmentation are considered useful from among the ones existing in the current market, listed
below:

Age:
1. Below 15: This segment forms 35.4% of the population and is an active existing market
for the biscuit industry with a lot of potential to grow.

2. 15-65: This segment consists of 60.4 % of the population and as such is the largest
segment in the area. This segment is potentially the most profitable due to its sheer size
as well as the fact that it is expected to grow.
3. Above 65: Only 4% of the population and generally not thought of as a viable market for
the business industry, both due to size and general lack of affinity for biscuits.

Income:
1. Below Rs.10, 000: Constitutes 55% of the population and as such may be profitable due
to its size for cheap biscuit products.
2. 10,000 to 25,000: Forming 34% of the population, this segment utilizes biscuits mostly
as treats and as a dessert and is an emerging market as other substitute products prices
rise.
3. Above 25,000: Only 11% of the population but still extremely viable due to the fact that
this segment consumes biscuits for all occasions.

User type:
1. Dessert: Although a small segment, this is termed as an emerging market due to the fact
that overall inflation has resulted in people looking to biscuits as cheaper dessert
alternatives.
2. Anytime Snack: The largest segment in terms of size, with the greatest potential for
profit as this use suggests an overall greater frequency of consumption.
3. With Tea: Relatively large in size, this too is a potentially profitable market as tea
consumption is frequent and biscuit consumption becomes dependent.

4. Energy Source: Consists of users that consume biscuits for energy, this is a small
segment which may be profitable if considered as a niche market.
5. As Treats (for guests): Medium in size, this is an emerging market for the industry due
to reasons already posted stated within the dessert segment.

Competitive Structure
The Pakistani biscuit industry consists of twelve manufacturers, five of which are considered
major players in terms of market share. These are: English Biscuit Manufacturers (26,7%),
Continental Biscuits (23.6%), Ismail Industries (14,7%), KS Sulemanji Esmailji & Sons (11%)
and Coronet Foods (9.8%). EBM and continental biscuits dominate the industry as they account
for half of the market share combined and although numerous other small competitors exist, they
have failed to make a considerable impact.

Leader:
EBM is the market leader and has been in business since 1967. It is the leader as it offers the
widest variety of products which are known for their quality and taste. These include brands such
as Peanut Pista and Sooper, Cornonet Foods is also an EBM subsidiary which primarily
makes Rio and Butter Puff. EBM is at an advantage due to the fact that its large operations
result in economies of scale and has a wide distribution network however it is difficult for them
to respond to changing consumer demands quickly.

Challenger:
Continental Biscuits fall within this category and have been in operation since 1985. They have
gained a lot of market share from the leader and continue to try and be innovative in their

approach. They too benefit from economies of scale and a vast distribution network; however it
is relatively easier for them to change to consumer demands.

Followers:
Ismail Industries and KS Sulemanji Esmailji & Sons fall within this category. These companies
have introduced products on the basis of success of leaders product. Their products are an
imitation of the leading brand is sold for a lower price so that they can attract price sensitive
customers. Their main advantage is that there is little need for research. The disadvantages
include: weak distribution network, small market, low awareness among consumers, low quality.

Niche:
Farmhouse cookies by EBM fall within this category. Although produced by EB, these cater to
a specific small segment of the market, namely those looking for high quality products,
regardless of price. Their advantages include the fact that they provide a need which others do
not and as such can charge higher prices. However the consumer might not prefer such a
differentiated product or competition may increase, resulting in reduction in profits from an
already small segment.

Recent Trends & Market Opportunities

Economic Trends
Pakistans economy has shown resilience to shocks which include domestic factors such as the
energy crisis and high levels of inflation. According to Pakistan Biscuit & Confectionery
Manufacturers Association, even in recession, the industry has grown at an average annual rate
of 7%, between 2002 and 2009. Inflation and insufficient supply of raw materials, particularly
sugar, contributed to the unit price increases seen during the first half of 2010.
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The biscuit industry remains largely unaffected as money spent on biscuits forms a very small
part of their income. Those that have been affected have increased purchase of biscuits which as
stated are sometimes used as a cheaper alternative to more expensive desserts. This represents an
opportunity for Rio to increase the overall size of the market.

Demographic Trends
The various changes in the demographics of Pakistan over the past few years have affected the
production and distribution patterns within the biscuit industry. The population growth rate is
1.57% and the rate of urban population is 36% which has a positive impact on the market for
biscuits. The increase in population and urbanization help to increase overall market size, leading
to a potentially larger market to serve for biscuits while changes in education level provide an
opportunity to market their product to the affluent college going population.

Psychographic Trends
Changes in lifestyle, western influence and a change in the marketing activities of the food
industry are the major changes that have affected the markets psychographics. Major lifestyle
changes include a greater awareness of healthier food and the need to actively seek out a
healthier living. This, coupled with an increasingly western influence represents a profitable
opportunity for higher end biscuit brands to focus on its current health benefits, make the product
healthier.

Target Market
As with any successful business, a target market should be created towards which the brand must
focus its efforts on in order to remain competitive and maximize its potential. This target market
is chosen based on a number of factors, the most important of which is the idea that the product
should satisfy a particular need for a particular audience. The key is to identify which segments
are particularly served by the usage of cookies. Thus we create a consumer profile based on our
previously identified segments:
In terms of age, the 15-64 segment is further divided, specifically targeting young adults and as
such the 18-29 segment is selected. The reason is that these are generally spendthrifts and form a
large part of the overall population.
In the income bracket range, we choose the least populous segment (above 25,000) because of
the fact that they consume more biscuits than any of the other segments and as such, due to their
higher incomes can be charged a higher price resulting in overall greater profit even if sales
volume would be lower in comparison to the below 10,000 category.
Research shows that the urban population consumes are ones that generally consume biscuits and
with over 35% of the population, they are large enough for our market.
In terms of usage type, it is best to target those that consume biscuits as an anytime snack
because such usage results in the most frequent amount of monthly purchase, as well as the fact
that it is the largest among its segments.

One should also define the type of young adults that are targeted in terms of offices, universities,
household types, etc. The age segment, along with the income bracket, largely consists of three
types of adults, those who attend universities, those who stay at home and those who are office
going. Out of these three, it is deemed best to target the university going types as these generally
spend more on FMCGs; however the office going types would be considered as the secondary
market.
Thus we come to our target market which consists of university going, urban young adults
between 18 and 29 who consume biscuits as an anytime snack, with an income of over
Rs.25,000.

Background of the Problem

Consumers today, in urban areas, are clamoring for a high quality, high taste biscuit line that aims to
target the higher end consumers. However this need has largely gone unsatisfied by local manufacturers
and as such a product which caters to this portion of the market can become quite successful.
Farmhouse cookies have been on the market for a significant period of time but have yet to create a
major splash in the biscuit industry. It is thought that the major reason for this is that the current
positioning is faulty and as such does not cater to any market at all.
This idea serves as the major research problem which we further dissect.

Problem Statement
The major problem stems from the background provided above; as stated Farmhouse cookies are not
positioned in a manner as to be perceived by any particular segment as ideal. Thus they have failed to
garner a high market share. This is the major problem and as such keeping in mind the fact that the higher
end consumers are not catered to; the problem statement becomes: To re-position Farmhouse cookies
in such a way as to appeal to the higher end consumers.

Research Objectives

To comprehend changing consumer attitudes and preferences for biscuits.

To assess the perception of Peek Freans Farmhouse Cookies and important factors which
induce customers to select these cookies

To analyze the factors which influence consumers choice for different biscuits

To investigate the impact of emerging competitors and their offerings on Farmhouse biscuits
sale

To gauge consumer awareness and usage behavior regarding different types of biscuits
offered by Peak Freans.
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Hypothesis
H0: Perception of brand image has an insignificant impact on the target audiences
preferences
H1: Perception of brand image has a significant impact on the target audiences
preferences

Research Plan
Methodology
There are a number of different methods of collecting primary data you need to assess. For
conducting primary research, we will be using both qualitative and quantitative research .For
qualitative research we will be conducting two focus groups. Focus groups are interviews in
which the researchers bring together a group of people who do not necessarily know each other
but who share a characteristic that is relevant to the question to be answered. Each focus group
would consist of 8 members, with a moderator. One focus group would consist of university
students and the other would consist of office going people. Moderators guide has been attached
in the appendix, which would be used as a guideline for conducting focus group. For quantitative
research, survey would be done by using questionnaires which would be floated between
university students which would consist of close ended questions. Surveys ask a common set of
questions of everyone who responds, typically offering multiple choice answers or rating scales.

Sample Size
The sample size for conducting the survey would be 40 university students which would be
selected using convenience sampling technique. Convenience sampling is the most common of
all sampling techniques; it is a non probability sampling technique in which subjects are selected
because of their convenient accessibility and proximity to the researcher.

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Scales
Multiple choice answers and likert scale would be used for making questions in the
questionnaire. This scale would be used because it requires the individuals to make a decision on
their level of agreement, generally on a five-point scale (i.e. Strongly Agree, Agree, Neutral,
Disagree, and Strongly Disagree) with a statement. The number beside each response becomes
the value for that response and the total score is obtained by adding the values for each response,
Controlled Settings
In controlled settings, one or two variables are manipulated whereas the rest of the variables and
external factors are kept constant. For our research no controlled settings would be used.
Tools for Data Interpretation
Analyzing survey data is an important step in the survey process , therefore it is important to
select the proper statistical tool to make useful interpretation of our data For coding, interpreting
and analyzing the data obtained from questionnaires, Stat graphics would be used, which is a
statistics package that performs and explains basic and advanced statistical functions. Descriptive
statistics and regression analysis would be used for analyzing the data and to prove hypothesis
right or wrong.

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Research Findings
This report (module 3) would focus on the research findings from the focus group as well as the
questionnaire survey; these results have been analyzed and have been listed individually below
along with a combined analysis in terms of how they affect the Consumer Purchase Decision
Process.

Focus Group Findings

Two focus groups were conducted; each consisting of eight people. One consisted of university
students and the other one of working professionals. These focus groups were recorded and the
video recordings were used to extract a number of common themes that emerged from the two
focus groups.
[Focus groups were conducted in Urdu, with quotes being transliterated into English for this report]

Generally cookies are perceived as a healthy snack for almost everyone. In our society, we have
a culture of drinking tea whenever possible and mostly the tea is complimented by either biscuits
or cookies. Sooper are the widely popular biscuits along with Bakery, Prince and Candy.
However many people (mainly university students) prefer cookies to biscuits as cookies are more
western and to some extend is associated with status symbol. Imported cookies are preferred as
there arent many choices of loyally made cookie in Pakistan. All the people said that whenever
they hear about Peek Freans, the first thing that comes to their mind is the pied piper. As stated
pied piper has been in my mind since the childhood.
When the respondents were asked about the brand personality of Farm House cookies, one stated
for me Farm House cookies are fresh whereas another respondent said that Farm House
cookies are healthy. During the discussion, another respondent added bakery has a soft image
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whereas Sooper has more of a friendly image. Prince was considered an old brand that needed
to be re built its position. According to almost everyone, Farm House cookies needed serious
advertising campaigns to make people aware of the brand. People hardly remembered any of
their advertisements.
However as there are lack of options for locally manufactured cookies, people still consume it
but arent brand loyal. Farmhouse cookies are good bad but pale in comparison to imported ones.
They prefer to buy imported cookies instead, but on occasional bases as they are too expensive
for regular use. Thus there is a high demand for quality cookies even if with a higher price than
before (lower price compared to the imported ones). Quality is the single most important factor
when deciding upon cookies, price being second. When discussing about different flavor fo the
cookies, one said out of all the Farm House Cookies chocolate chip is the best and this was
agreed by the rest as well. Generally people were satisfied with the packaging design but a few
said that it could have been more innovative by adding more colors to it.
It was suggested that Farm House Cookies should also be available in mini packs. Furthermore
Farm House Cookies are considered to be a product with a low price but unfortunately with a
low quality as well. Farm House Cookies made its price affordable by decreasing the quality
of the product and that is not acceptableI am ready to pay more for its price if they promise to
make it a quality product...
When people were asked about the mode of media they prefer, almost all replied Television with
in a second. University student were mainly focused towards entertainment channels whereas the
working professionals watched news channels most of the time. Many people suggested

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associating some sports celebrity with cookies advertisement focusing on health whereas others
wanted to endorse it with a TV celebrity.

Questionnaire Findings
The questionnaire was distributed among 40 university students and the data collected was
analyzed to come up with a consumer profile and to identify the consumer decision process for
biscuits in our target segment.
[Please note that the results of each individual question have also been attached in the appendix]

Consumer Profile based on Questionnaire Findings:

Our typical consumer, based on the findings of the questionnaire is a male who lies in the age
bracket of 20-29 with a household income of Rs. 40,000 or above. He consumes biscuits daily
during tea breaks or as a snack. Hes extremely meticulous, he thinks twice before buying
anything. He would switch to another brand of biscuits only if it has an out of the world taste.
His eating habits are such that he eats whenever he feels hungry. His needs are such that he
wants the product to be of a great taste, fresh and easily available in the market. He gets attracted
to biscuit ads in which taste is described and he would try new brands by unknown player
because it might have a great taste. He usually buys biscuits from general stores, prefers
chocolate chip cookies with Oreos being his favorite brand.

Consumer Purchase Decision Process

The first step towards understanding the target markets needs involves understanding their
needs in terms of biscuits and which aspects of these needs are unfulfilled. Once this has been
established, the relevant needs can be established.

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Relevant Needs
Our primary research has shown that our target market prefers biscuits which are high in quality
and as such are willing to pay a higher price for what they perceive as high quality. This then
results in a need recognition process among the target market consumers. The need recognition
starts when the individual identifies that he or she wants high quality biscuits, regardless or price.

Informational Search Process

Once need recognition occurs within the individual, the potential consumer carries out an
informational search process, which is conducted in two ways:
Internal Search

The internal search process involves the individual analyzing the product and brand through
ones own internal cognitive forces. This is done based upon four aspects: existing knowledge,
confidence in that knowledge, the ability to retrieve stored knowledge and satisfaction with prior
purchases. If the individual is satisfied on all four counts, he or she proceeds with the decision to
buy biscuits, else an external search is carried out.
External Search

This involves collecting information from the environment in terms of advertisements, the
internet, friends and family. They use these four areas to gather information to help with decision
making. It should be noted that this may occur when one wants to make a purchase decision (prepurchase search) or for information gathering (ongoing search) for later use. These are also the
basic purposes why consumers may carry out external search.

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In terms of biscuits, the results show that consumers are reliant upon the perceptions that they
have of the brand and act upon those when purchasing biscuits. Customers in general seem to be
aware of the positioning of different brands and as such act accordingly when purchasing
biscuits. Most rely upon an external search process for high quality biscuits.

Alternative Evaluation & Purchase Decision

Once a need has been recognized and the information search is carried out, the consumer starts to form
consideration sets of the products that can satisfy his hunger. The consideration set will include all sorts
of snacks like chips and biscuits. Selection and narrowing down of all these alternatives is based on
consumer perception.
The perceptual interpretation that consumers go through is based on stereotypes, physical appearance,
descriptive terms, first impressions and halo effect. These perceptions can be result of some
advertisement, past experience or social influence. The consumer then narrows his options and decides
on having a biscuit. Now the consumers consideration set will become more specific and would contain
only the brands of biscuits. This set will include farm house cookies, bisconni chocolate chip cookies, M
& S cookies, Bakeri, Oreo etc.
After going through first three steps, consumer has to make a purchase decision. Purchase decision is
greatly influenced by consumers attitudes and beliefs. Our target market currently looks towards
imported biscuits to satisfy their needs and as such the purchase decision generally involves imported
products (because theyre perceived to be of higher quality).
After he has consumed the cookies, the consumer has reached the post purchase behavior stage. This
stage will measure the value of the product to consumer.

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Social Influences & Reference Groups

A number of social influences have been identified for our target market; these include family,
friends and celebrities.
It is seen that in terms of cookies, friends have the greatest social influence upon each other that
in turn are affected by celebrity endorsements and past experiences. Families serve as the
secondary reference group that affect biscuit purchase decisions for the majority of our target
market.
What these social influences help to accomplish is the perception in the minds of the consumers
with relation to the perceived quality and value derived from the product, in this case, Farmhouse
cookies.

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Regression Results
The hypothesis, which stated that the brand image plays a significant role in forming consumer
perception in terms of brand preferences, has been tested using a regression equation.
It has been stated that in order to understand how brand image affects consumer preferences, five
variables are looked at and how they affect perception of brand image for the consumers.
These five variables become the independent variables while brand image becomes the
dependent variable. The independent variables are: product, price, promotion, place and taste.
The regression equation:
Brand image = 0.541632 - 0.0683817*channel distribution + 0.19053*packaging +
0.319941*price + 0.104919*taste + 0.331868*advertisement
ANOVA Table statistics:
R2= 90%
P Value: 0.0013
As can be seen, since the P value is less than 0.01, we state that we do not reject H0 and brand
image plays a significant role in changing consumer perceptions.
In terms of individual variables, it can be seen that apart from channel distribution, all affect
brand image positively while channel distribution affects it negatively. How these results are
used to change band image is explained in each individual section in this report.

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Product Concept & Branding

The product concept consists of characteristics of the product that showcase the qualities,
performance and features. The product concept is based on the wants of the target market. When
designing the product concept, every detail is tailored to satisfy the needs and wants of the
products target audience.
As stated in our earlier research, the target market has specific needs that can be catered by
Farmhouse Cookies. The characteristics of the target audience suggest that these consumers are
willing to pay a higher price as long as the quality is considered to be very high. Currently these
consumers prefer imported cookies such as Oreos (as found out in our research). Based on the
factors listed, Farmhouse Cookies would be repositioned in the market with a new brand image.
The new brand image would convey the idea of quality and luxury and these cookies would be
positioned as the absolute best in the market. In order to completely recreate a new brand image,
a new logo and a new tagline has been created to convey our new message.
The new tagline would be: Simplicity. Elegance. Luxury. This would help keep the message
sophisticated yet straightforward, conveying the notion that Farmhouse Cookies are a high
quality brand.
The new logo would consist of tri color waved stripes with the top one colored blue and would
curve upwards, the middle one colored black and pointing straight, while the tird one would be
colored purple and curving downwards. The three stripes would represent the three types of
cookies that come under the Farmhouse umbrella (butter, chocolate chip and coconut) while the
colors would represent the tag line message, where blue would be for simplicity, black for
elegance and purple to convey luxury. The idea behind this new image is that these new
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personality characteristics will help the audience of our target market to associate themselves
with the brand.
In order to make this repositioning successful, the marketing mix of the product will also be
completely overhauled. New promotional strategies will be formed emphasising more on
television ads as it is the most liked media choice of our target audience. Pricing will be revised,
making it a higher price niche product and more effective distribution channels will be
established.

Product Strategy
Farm House Cookies, as the name suggests, are manufactured using the best quality of materials and this
fact needs to be highlighted in order to improve the perception of the consumers that these biscuits are of
high quality. Moreover, the irresistible freshness of the biscuits should also be given due attention. This
overall product strategy would be applied to the three different types of cookies that fall under the
Farmhouse Cookies umbrella; these are: Chocolate Chip Cookies, Butter Cookies and Coconut Cookies.
It is the packaging that plays a key role in presenting the brand values of the product and for a luxury
brand, which differentiates itself on quality and image, the importance of the packaging is intensified.
Luxury brands rely on packaging to cultivate an image of high quality, elegance and sophistication for
their products. Amongst many different packaging types used in the luxury world, steel is gaining more
and more ground because of the unique benefits it can offer, including advanced shaping performance and
a multitude of decorative finishes, embossing and de-bossing.
Farm House Cookies should be packaged in a steel/tin box with special decorative finish, which
demonstrates value through sophisticated printing and luxury shaping, the name embossed

Color is the best way to reflect and enhance a unified image and branding of a product, as it is such a
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visual medium. The packaging colors should relate to the logo and reflect the image being sent to the
market place to attract buyers.
Farm House Cookies should be packaged in silver as silver packaging implies elegance and sophistication
and silver combines well with most other colors; dark blue decoration will suggest a conservative and
trustworthy product and would be best suited for coconut cookies, purple decoration will suggest
luxuriousness and would be best suited for chocolate chip cookies, black decoration will suggest simple
sophistication and would be best for butter cookies.

Pricing Strategy
There are lots of factors that need be to taken into account when pricing a product and after
thoroughly going through those factors, one need to select the pricing strategy most suitable for
the product and the market conditions. The company needs to set pricing objective, determine
demand, estimate costs, analyze competitors costs and pricing, select a pricing method and then
come up with a final price.
In an environment with multiple competitors, it is important to look at the products value in the
eyes of the customer, its perceived value, and what is deemed to be a fair price for such a
product. The competition and their prices also have to be kept in mind and how one wants to
position the product in terms of the competition.
Keeping in mind these factors, premium pricing strategy will be used which involves setting the
price of the product higher than similar products. The reason for selecting this pricing strategy is
that currently consumers perceive Farmhouse cookies as of low quality. This perceived quality
can be defined as the consumers judgment about the products superiority. High price of
Farmhouse cookies would change the perception of the consumers and would signal the
consumers that the product is high in quality. The reason for doing this is that generally people
equate high prices with high quality therefore it would be easy to change consumers perception
by artificially increasing the price of Farmhouse cookies. The benefits of using premium pricing
strategy are that it could easily cover high costs of the new packaging. Premium pricing would

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also result in high profit margins. Thus Farmhouse Cookies will be highly priced compared to
other local cookies as we promise Simplicity. Elegance. Luxury.

Promotional Mix
The promotional or communications mix consists of various forms of advertisements that range
from direct selling to indirect selling, mass communication to public relations. The idea is to
create objectives for major promotional channels and then come up with effective ways to
achieve those objectives through advertisement.

TV advertisement
Farmhouse Cookies would be promoted heavily both pre re-launch and post re-launch. The idea
of pre re-launch would be to create awareness which would be mainly through TV
advertisements on music and entertainment channels since the adult urban target markets prefer
watching these stations. The basic idea of Tv ad is to show people that Farmhouse cookies are
cookies from heaven. The purpose is to show consumers that Farmhouse cookies has an out of
the world taste, the awareness campaign would extend itself to SMS marketing as well,
spreading knowledge about the product via SMS.

Print advertisement
The idea of creating a specific image, especially that of simplicity, elegance and luxury would be
created near pre re-launch and post re-launch via print ads which would also be available online
on Face book. In addition, Farmhouse Cookies would have its own website on which both print
and video ads would be shown and latest promotions would be displayed. Print ads would be
using the tag line Simplicity. Elegance. Luxury campaign, promoting the product as of high
quality, mainly targeted at the younger audience. The basic idea of using this tag line is to
convey to the consumers that our cookies are so good that we dont need gimmicks to sell them
because the quality of cookies is enough reason for you to purchase them.
Just before launch, the product would be handed out at select stores in major cities as a free
sample so that people get accustomed to the taste and style of the product.

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Outdoor advertisement
Post re-launch, billboards and posters would run both print campaigns and television
advertisements would change to reinforce the message earlier displayed. Television ads would
come in short bursts of two weeks after which there would be no advertisement of a week and
this cycle would continue for three months.
With the help of electronic media, advertisement boards, banners, advertising on newspapers,
pamphlets, brochures and by stall activity of marketing department; taste of the consumers is
developed and awareness is brought among people about living an elegant life with a healthy
lifestyle.

Pre re-launch Brand

exposure

20%

Post re-launch Brand

exposure

Tv

15%

Tv

Print
Print
55%
25%

30%

Outdoor

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55%

Outdoor

Channels of distribution
A selective channel distribution strategy will be used as these are high quality cookies and as
such would be available only at supermarkets and hyper markets to help with the perception that
these are high quality cookies and as such arent available at small stores.
The current distribution channel has too many intermediaries and thus isnt efficient; the
following distribution channel is proposed: Manufacturing plant -> Company Ware House ->
Regional Ware House ->Distributor -> Retailer
All cookies manufactured at the plant will be shifted to the company warehouse for storage
purposes. Once stock is accumulated it will be shifted to the regional warehouses according to
the demand for further distribution to local distributors and then to the selected retailers.
The five-step easy distribution will help in the following ways:

Centralized approach, which will enhance efficiency

Less cost will be incurred in transporting the cookies since selective distribution would
require lesser number of distribution channels

Record maintenance at fewer areas allowing easy reconciliation

Optimal number of employees engaged to do the task The Right Way

Availability at selected retailers will improve perception about the quality of the cookies.

More cookies at a particular location will increase bulk sales

24

Appendix
Exhibit 1: New Farmhouse Logo and & Tag Line

Exhibit 2: Print Advertisement (Pre Re-launch)

25

Exhibit 3: Print Advertisement (Post Re-launch)

26

Exhibit 4: Storyboard for TV Advertisement (1)

27

Exhibit 4: Storyboard for TV Advertisement (2)

Exhibit 5: Current Distribution Channel

28

Exhibit 6: ANOVA Table

References
Ahmed Lodhi (2010), Biscuits in Pakistan. Euromonitor International.

29

Jawad Afridi (2010) Prince by LU . Continental Biscuits Ltd.

Ahsan Butt (2008), Who Counts as Middle Class. Asian Correspondent.
Miguel Loureiro (2005), Developing Pakistan: The Good, Bad & Ugly. Daily Times
Population Census Organization (2011). Government of Pakistan.

30

Appendix
Questionnaire Results:
The results of each question are displayed below, with an overall result analysis from the
questionnaire listed after the individual findings of the questions.
1. What is your age?

Below 20

18%

20-24

43%

25-29

28%

Above 29

11%

Most of the respondents belonged form the age bracket of 20 to 24 while another major chunk
was from the 25-29 age bracket.

2. What is your current monthly household income?

Below 20,000

2%

20,000 39,000

8%

40,00049,000

27%

Above 49.000

63%

A considerable amount of respondents had a current monthly household income of over 49,000
with the 40-29,000 making up another considerable chunk.

3. Do you consume biscuits?

Yes

95%

No

5%

An overwhelming majority consume biscuits.

4. If No, please specify a reason

31

You dont like biscuits

48%

You prefer other snacks

35%

You think its not healthy

5%

You think its costly.

12%

The major reason provided by the respondents of not consuming biscuits was that they did not
like biscuits in the first place.
5. How often do you purchase biscuits?

Daily

39%

Once in 2-3 days

23%

Once a week

20%

Once a month

18%

A large number of people purchase biscuits on daily basis while the other half bought them on
weekly or monthly basis.

6. When do you generally consume biscuits?

Breakfast

8%

Tea Break/Snacks

34%

In between meals

18%

Whenever Hungry

14%

While studying/working

19%

While traveling

7%

A major chunk of respondent consumes biscuits during their tea breaks or as a snack while some
also took them between meals or when studying.

7. How would you describe your spending habits?

32

governed

by 32%

Varies, Depends on the product

27%

Extremely meticulous, I think twice 41%

Generally

erratic,

impulsive likings

before I buy everything

Most of the respondents are extremely meticulous and think twice before buying everything.
8. How would you describe your eating habits?

I stick to a set number of meals and 41%

the corresponding mealtimes

I eat whenever I'm hungry

59%

The eating habits of respondents are almost equally divided between the options of eating
whenever they feel hungry and sticking to a set number of meals
9. If you would change your existing biscuit brand, on what reason would that change be
based most?

Value for money

19%

Brand Image

26%

Out-of-the-world taste

43%

Healthier choice

12%

The major reason provided by the respondents for changing their existing brand is the out of
world taste.

33

10. Rate the following attributes in biscuits

Most
Important

Important

Neutral

Not

so Not

important

important

Taste

58%

36%

6%

Brand

28%

41%

16%

10%

5%

Price

38%

21%

18%

16%

7%

Packaging

22%

38%

13%

20%

7%

Advertisements

31%

27%

21%

16%

5%

Variety

13%

18%

43%

18%

8%

Availability

57%

29%

14%

Different Sizes/Packages

29%

31%

16%

10%

14%

Freshness

83%

13%

4%

Health Quotient

12%

19%

39%

22%

8%

11. Would you try a new brand brought out by an unknown player?

Yes, It could have a really great 70%

taste 70%

Maybe only if the packaging is very 20%

attractive 20%

Absolutely No 10%

10%

A major chunk of respondents said that yes they would try, while some also said that they would
try only if the packaging is very attractive and some said that they would not try the new brand.
12. What attracts you most to a new untried brand of biscuits?

Advertisements

10%

Attractive Packaging

15%

Taste described

60%

Cheaper Price

15%

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A large number of people said that they are attracted to new untried brands because of the taste
which is described while others said that they are attracted because of price, packaging or
advertisements.

13. Rank the following types of biscuits on how much you like them

total
Butter

65%

Chocolate chips

15%

Cream

10%

With nuts

10%

Salt

5%

Respondents were asked to rank the above mentioned brands of cookies from 1 to 5 in the order
of their preference. To calculate the aggregate ranking, points/weights =were assigned and total
rankings were calculated. The aggregate ranking shows that 65% of the respondents preferred
butter cookies,15% chocolate chips, 10% cream and nuts and 4% preferred salty cookies.
14. Where do you generally buy biscuits?

Local shop

5%

General stores

60%

Super markets

30%

Wholesale Markets

5%

Most of the respondents generally buy biscuits from general stores, a big chunk of respondents
buy from super markets and others buy biscuits from local shops or wholesale market

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15. According to you, which is the most effective media for advertising a biscuit brand?

Newspapers

5%

Television

50%

Magazines

30%

Hoardings

15%

A large number of respondents say that television and magazines are the most effective media
for advertising whereas the rest say that newspapers and hoardings are also effective.

16. Rank the following biscuits as per your preference

Total
Oreo cookies

35%

Bakery butter cookies

20%

M & S cookies

15%

Chips Ahoy

15%

Farmhouse cookies

10%

Other

5%

17. Does brand image play an important role when choosing biscuits?
Total
Strongly Agree

35%

Agree

20%

Neutral

15%

Disagree

15%

Strongly Disagree

10%

36

Respondents were asked to rank the above mentioned brands of cookies from 1 to 5 in the order
of their preference. To calculate the aggregate ranking, points were assigned and total rankings
were calculated. The aggregate ranking shows that 30% of the respondents liked Oreo cookies,
20% preferred bakery butter cookies, 15 M & S cookies, 15% Chip Ahoy cookies, 10%
Farmhouse cookies and 5% other cookies.

Focus Group Discussion Guideline

INTRODUCTION/ WARM UP (5 Minutes)

Introduce yourself

Highlight the purpose of focus group

Introduction of respondents

Ask about their hobbies

Try to be friendly and build rapport

Rules of Focus Group

LIST OF PREFERENCES (5 Minutes)

Perception about biscuits

Ask respondents regarding different brands of biscuits

Ask them to list them as per preferences

Basis choosing one biscuit over another

WORD ASSOCIATION TEST (5 Minutes)

Ask them to tell about first word comes to their mind when they hear about different
brands of biscuits

37

PERSONFICATION TEST (5 Minutes)

Screen the list to two or three brand which should have Farm house cookies and ask
respondents to associate a personality trait with Farm house cookies and competitors
Brand.

PERCEPTION OF FARM HOUSE COOKIES (5 MINUTES)

Perception about Farm house cookies

When do they like to eat Farm house cookies

How they perceive Farm house cookies when they see advertisements

Ask them about taste of Farm house cookies

Quality of Farm house cookies

Flavors of Farm house cookies

PACKAGING (10 Minutes)

Ask them about packing of Farm house cookies

Ask them about color of packaging

Is the packaging convenient?

What do they suggest regarding any change in packaging and color

PRICE SENSITIVITY (10 Minutes)

What do they think about price of Farm house cookies?

Is it fair or over priced or under priced?

Will they pay more for improved Farm house cookies?

38

MEDIA HABITS (10 Minutes)

Sources of Information

Which mode of media they prefer like TV, Radio and news paper

Favorite TV Channels

Favorite magazine

Favorite celebrity

Area and location, where they travel

Suggestions to improve marketing of Farm house cookies

CLOSING (5 Minutes)

Summarize

Feedback

Closing remarks

Gifts

39