Project Report on

K&N's a Pakistani multinational poultry and frozen food company 

SR. NO STUDENT NAME REGISTRATION NO.

1. Hunain Sohail Sheikh F2019274011

2. Gohar Ghaffar F2019274004
3. Muhammad Ibrar Butt F2019274005
4. Ahsan Ahmed Ejaz F2019274016

Submitted To : Mr. Imran Sadiq

Subject : STATEGIC MARKETING MANAGEMENT

University of Management and Technology, Lahore

 TABLE OF CONTENTS

Acknowledgement........................................................3
K & N's..........................................................................4
Introduction..................................................................4
Porter Five Forces........................................................5
MARKETING 5C ANALYSIS...................................6
SWOT ANALYSIS......................................................9
BLUE OCEAN STATEGY OF K & N'S.................10
ERRC AND VALUE INOVATION.............................
 Acknowledgement

In the name of Allah, the most Gracious and most merciful. In cerebration of my

duty, I had to head the helpfulness and guidance of several reputable persons, who

deserve my deepest gratitude. As the conclusion of this determination gave me

often pleasure, I would such like to impart my gratitude to Sir Imran Sadiq, Series

Instructor, and University of Management & Technology. I would also like to

alter my gratitude to all those who individual flat and indirectly guided me in

penning this designation.

Introduction
Totally organized poultry try was made in 1964, usually known as K&N's (Khalil and Nushuba),
presently run by Adil k Sattar.

January 1964, a youngster Khalil Sattar, Has a Vision of Foresee a need to build up a poultry
ranch? His advantage drove him to begin a grill homestead of 1000 chicks. Little had he realized
this rush was to turn into the establishment stone of K&N'S. This was the straightforward,
enlivened the nationalistic start of K&N's with a determined target of giving a superior
nourishment to wellbeing and satisfaction of the country.

K&N's simply focus on "Protected and Healthy Chicken". They have their very own stores in.
They additionally bolster their chicken stores even they were demonstrated expensive at the
outset since this thought offers Opportunity to profoundly comprehend the buyer conduct and to
enter in the market.

K&N's is the establishing column and reference point for Pakistan poultry industry-began in
1964 with a determined goal of giving better nourishment to well-being and satisfaction of the
Nation. Expanding on long periods of poultry aptitude, and a pledge to nourishment - security,
K&N's incorporated all poultry creation exercises under one umbrella to guarantee quality and
sanitation by overseeing and controlling all phases of generation.

K&N's appears to be quick to develop in remote markets as exceptionally fascinating details of

developing interest of Halal nourishment in US, UK and France for this reason Pakistan
government is additionally appears to be steady to assist them with becoming outside the nation.
Porter Five Forces

Rivalry among Existing Competitors:

One of the primary competitor exist is wet market, brands like Sufi, Dawn and Menu also
compete with K&N’s. Effective promotion campaigns by menu foods and number of retail stores
of Menu located in Pakistan causes rivalry between the two brands. Mon Salwa collaboration
with Masala TV and Food fusion also creates huge competition for K&N’s.

Threat of New Market Entrants:

Every year companies attempt to enter chicken and value-added chicken products market. New
companies like Sabroso, Big Bird and Mon Salwa are threat to K&N’s .So the threat is high for
new entrants.

Threat of Substitutes:
There has always been threat to poultry by fish, vegetables, beef and mutton. Other brands have
started to offer ready to made vegetables, fries and other products which can sway the customers
away from only eating frozen chicken products. Menu offers sea food like finger fish and fish
biscuits and also vegetable products like potato cutlet, potato samosas, vegetable samosas etc.

Beef, vegetables and fish is a substitute to poultry. Frozen beef products, frozen vegetables and
frozen fish is a huge substitute to the value-added chicken market. Brands like Mon Salwa,
Dawn and Menu have a huge line product line. Mon Salwa also offers fries and aaloo tikki.
Bargaining Power of Suppliers:
There is no as such power of suppliers to bargain because K&N’s produces its own chicken and
they are following the backward integration.

Bargaining Power of Buyers:

It will be relatively higher as increasing competition, low switching costs means they buyers
have more options available at handsome prices, so they might easily switch to other brands.
K&N’s exports poultry to countries like UAE. The buyers of K&N’s have bargaining power
because companies like Mon Salwa exports to 9 different countries. So, these buyers can easily
switch brands like Mon Salwa and Menu if they offer better price.

MARKETING 5C ANALYSIS

Company:
K&Ns is a leader in the industry of frozen foods and meat (both chicken and mutton) as
well. The company features are listed below:
1- leader in frozen foods and meat,
2- diversified products that cover a wide range of products,
3- industry standard production and preservation standards,
4- a well established supply-chain with great potential for further growth.

Collaborators:
K&Ns is a company that is competing in an industry with different aspects that need to be
in place for delivering value to customers. For this sole purpose they need collaborators
that are used in different aspects to bring forth the final product.
1- packaging of meat and frozen foods is done by collaborating with companies working
in the packaging industry.
2- the delivery of products to different outlets needs a sustainable supply chain that can
work efficiently to meet targets as planned.
3- purchasing of preservation machines, refrigerators and cooling areas is accessible
through collaboration with a third party.

Customers:
The range of customers that K&Ns needs to satisfy is diversified which is an advantage
for the company as well. K&Ns covers the needs of the complete middle class and upper
class as well because the products are spread across a wide range demographically,
geologically. Only the lower class is the sector that K&Ns does not need to target as the
lower class can't or won't afford the additional cost the comes with the services provided
by K&Ns.

Competitors:
K&Ns covers a wide range of products which is why it has competitors looking to target
a specific product.
K&Ns has a number of competitors like Sufi, Dawn, and Menu that also provide frozen
products.
Similarly when it comes to meat, K&Ns has a major competition when it comes to the
local meat industry that has spread with great acceptance among the mases. Big Bird is a
company that competes with K&Ns in the meat industry.
 Context : (PESTAL)

Political :
 Future political conflicts can affect the international trade agreement to different
countries which K&N’s exports.
 Unstable political conditions like strikes affects the business of the country which leads
to the reduction in sales.

Economic:
 Chicken prices were going up and down which was very common in Pakistan.
 Volatile demand for chicken
 Uncertain regulatory tax environment in Pakistan
 The general trade agreement between Pakistan and Malaysia in 2009 increased the
number of imports of finished poultry products
 Challenging trade environment has a major impact on consumer demand

Social:
 Due to religious issues people were not sure about the transparency in Halal standard
quality of the poultry industry.
  Consumers were purchasing chicken from wet market.

Technological:
 K&N’s were using their own refrigerated trucks that transfer their products all over the
country to the retail stores.
 K&N’s used their modern poultry houses with automated feeding, advanced temperature,
watering system and ventilation control system to grow their chickens

Environmental:
 Environmental challenges like serious diseases such as bird flu and salmonella in broilers
are very common.
 Poor quality standards of chicken in Pakistan

Legal:
 The export of Pakistani chicken was banned by OIE (World Organization for Animal
Health) because of the concern for diseases like bird flu. In 2008 the ban was lifted but
Pakistan faced problems in reactivating the poultry export.

SWOT Analysis of K&N’s

Strengths Weaknesses
 Market leader  Premium prices, as prices are usually
higher than others
 Established international brand  Unavailability in Rural areas due to
recognition refrigeration and cold supply chain
issues.
 Supplier to many food outlets ( Nando,  Lack of awareness in consumers
KFC, etc. )
 Self-production plants, Automated  Increased customer dissatisfaction due to
operations small shop keepers filling refrigerators that
are provided by K&Ns with other products

 Halal food  Retailer franchises setting up their own

discount pricing strategy on K&Ns products
 Reliable delivery of safe and healthy
chicken
  One of the country’s largest producers
of broiler-chick

Opportunities Threats
 Ready to eat products  Increasing competition by Menu,
Dawn, Sufi, and Big Bird.
 International operations  Increase inflation
 Demand for convenience products is  Rising poultry rates, pricing of
growing machinery and equipment’s
 Occasional demands, influx of branded  Imported chicken
food outlets
 The upper and upper middle class is  Electricity issues
also growing 10% of the population
 Poor quality and health standards by  The wet market is still a major threat
wet market due major chunk of sales.
 Disease outbreaks ( Bird flu, etc.)

Blue Ocean Strategy of K & N’s

There could be many strategies but two of them are Blue Ocean and Red ocean strategy. A red
ocean strategy involves around an existing competing market, here one could face intense
competition and aggressive rivalry. The key is to beat the competition and exploit the existing
demand. We can be more at ease by offering differentiation against competition firm or adopting
low cost strategy (cost leadership).

The blue ocean strategy refers to strategy based on creating demand that is not currently in
existence, rather than fighting over it with other companies. It is exclusively about creating new
demand turn non customers to customers, and align the whole system of firm in pursuit of low
cost or differentiation.
The current industry of frozen meat and food in Pakistan lies in Red ocean due to aggressive
competition, various key players along with market pioneers are fighting for the market share in
current market that is finding it hard to create new demand and turn the non-users of frozen
product to add them in their priority lists. Brands are introducing new products. This is resulting
in the competition, price war and reducing the margins to operate. Urban consumers of Pakistan
have shown greater interest in products offering greater convenience against higher prices. Thus,
the growing preference for convenience over the price is a major driving factor for the growth of
frozen foods in Pakistan.

Reach Beyond Existing Demand

Tier 1: “Soon to be” customers who are edge of the market waiting to jump ship.
Tier 2: “Refusing” non-customers who are consciously choose against your market.

Tier 3: “Un-explored” non-customers who are in market distant from yours.

 First Tier :
They are soon-to-be customers, who have sound knowledge about product offerings,
follow your market. Brands are positioning their frozen ready meal products with claims,
such as halal-certified. It is an exciting factor due to more nutrition benefits they are
likely to switch to the market.
K&N has invested heavily on its innovative poultry plants, using the best technically
equipped machines, spending 1 – 2% of their income on advertising, developing
operating manuals to educate local shop owners about handling of frozen products, along
with present changing market trends of people focusing on better quality value due to
heavy influx of digitalization that has provided awareness. The composition of customers
is changing, now we have more women who are working in society that adds frozen easy
to cook food into their priority list due to time management issues.
Sooner or later, customers will attract towards the glittering market of frozen world.

 Second Tier :
That market is where the majority of market share lies; it is called wet chicken market of
Pakistan. People that cannot afford or have misconceptions about halal implications, or
unimpressed by market offerings are part of second tier.
K&N has certaing premium price parameters where they never compromise as they
promise to provide healthy nourished products, but the factor of pricing is major problem
since the competition is tough and stiff, key competitors are already offering products
relatively cheaper rates, so the whole market that doesn’t follow the frozen food cuts
from the potential customers. It is certainly huge untapped market due to refusal of
customers to have a grasp of frozen food.

 Third Tier :
The process of economic empowerment has given rise to an affluent middle class,
particularly in the metropolitan areas of Pakistan, such as Karachi, Lahore, Faisalabad,
Islamabad, and Rawalpindi. The convenience factor associated with freezing is poised to
create significant impact spanning different sectors of processed foods and agricultural
commodities in Pakistan. The rest of Pakistan seems to be cut off, the rural market of
Pakistan is unexplored is terms of this industry, which is biggest downfall for the overall
industry.
 If that market is slowly touched with product education, low cost strategies, free
samplings and effective distribution. It is a whole lot of ocean that could be swum by the
industry players.
Eliminate Raise
 Retail selling to small stores  Product range
 weight

Reduce Create
 Reduce cost  Fresh frozen vegetable
 Fresh live meat

ERRC GRID

Eliminate:
The company may stop selling their products to small retail stores because they misuse the
freezer provided by the company by filling with other products.

Raise:
The company may raise the product range and weight of their offerings in order to add value to
their products.

Reduce:
The company is offering high quality products in premium prices so the cost must be reduced in
order to capture the middle class and lower middle class because the competition is quite high.

Create:
The company can come up with an idea of offering frozen ready made vegetables so it will
capture those people who do not want spend more time in cooking vegetables. They can also
offer fresh live meat facility which will help them to compete with wet market.