Acknowledgement

First we are thankful to almighty ALLAH who gave us the strength & ability to work on such

a project & gain tremendous knowledge. With all due respect we also would like to say

thanks our instructor Mr. Hassan Raza who have been a great influence on us throughout the

project & help us with all the problems we encounter. He taught us & been very polite &

helpful. It was indeed due to his effort we achieved success.

Executive Summary

Our project based on Marketing mix modeling on three different variants of

Sandwich offered by Bread & Beyond under the umbrella of DAWN

FOODS .We have introduced three variants of marketing mix & applied all

marketing strategies that should be considered before & after introducing the

product.

The main reason for selectingsandwich as product is to bring paradigm shift in

the market in order to earn more sales because we think company is losing its

sales due to various reasons i.e. lack of promotional activities, traditional

distribution mechanism and limited access of their products just to the upper

class and ignoring huge segment of middle class in Pakistan.

Through survey we have analyzed that nowadays people are living in a fast

moving life and rely so much on fast foods and ready made safe and healthy

foods and products as they are becoming more diet and health conscious, so

there is an opportunitylying in the value gaps left by bread and beyond in the

market that company can fulfill. With help of three variants we have worked on

in order not just be close to its upper class but also identifying and by

recognizing the current clout of middle and upper middle class So that their

marketing strategies are helpful and beneficial for boosting sales and ultimately

generating revenues for the company.

 

History:

The history book opened up in 1979 when the first ever Dawn bread came in to existence.

After successful opening of their plant in Karachi in 1981. Dawn bread is the name that has

come to signify quality and freshness in bread products.

Prior to the establishment of Dawn Bread, the largest producer of bread products was the

public sector. However, this sector could not cope with the demands of the consumer and this

when, perceiving a change in the eating habits of Pakistanis, Dawn Bread was envisioned.

For purpose of standardization, the company associated itself with FMBRA of United

Kingdom in 1990 to bring itself in line with international standards of production,

technology, machinery and formulation Now, all the Dawn Bread plants boast of the latest

machinery used in the bread-making process and same concept is being applied in the live

baking concept under the name of “bread and beyond”. They are managed by senior food

technologists with decades of experience, while those manning the machinery are provided

on the job training in congenial working conditions. Taking a responsible place in society, the

company is committed to the uplift and development of the society as a whole, and

participates in sports and social welfare activities

Now after successfully opening of their Bread & allied products plants all over the nation it

was time to move on.

They were the only suppliers of bakery products who were highly innovated in terms of

technology and current industry trends.

One of the most upcoming trends was frozen bakery products. This is where they got their

lead and planned to open the first ever live bakery in Pakistan. Upon that the roller coaster

ride automatically added on the height and the ride got more exiting. Now B&B has

successfully installed 10 sites in Lahore, Islamabad, Rawalpindi and Faisalabad with the plan

of opening 6 more by the mid of year 2010.

Bread and beyond Mission statement:

Bread & Beyond is committed in serving the customers the most possible freshly baked

assortment either from their live bake off or from the production facility located in every city

in Pakistan. Bread& Beyond is committed in providing the safest and healthy product and it

starts from auditing their raw material suppliers. They are committed in creating awareness

toward safe and healthy products with the correct certifications to back up their claim. Bread

& Beyond is committed in creating the new attitude and onsite production of their products.

Their efficient R&D is always on a look out on the newest trends in Bakery world and they

strive hard to deliver those international trends in Pakistan. They are struggling in updating

every grocery store in Pakistan to have a fresh live bakery of any size. The introduction of

frozen assortment helps the customer minimize their expenses on baking as they claim to be

everyone's baking partner.

The purpose: Create a safe and healthy awareness amongst bakery users.

The businessstrategy: Innovate newer products and introduce them in Pakistan

alongside they help in uplifting or create a new idea for any in-store live bakery.

The Values: Safe and healthy food is the only option they live by & their people are

their strength.

The objective:

Their ultimate aim is to retain the Company customers and create natural preference for their

products among our entire consumer based on value for money and most importantly quality

and taste.

Target market:

Bread and beyond target market is“upper class of Punjab i.e. A+ class”. The concept behind

the selection of elite class in Punjab was due to the high percentage of Punjabi population in

comparison to other provinces or ethnic groups of Pakistan. Bread and beyond launched its

live bakery concept in Punjab and its cities like Lahore, Islamabad, Rawalpindi and

Faisalabad. Because the major source of Dawn bread sales was getting generated from

Lahore population so launching live bakery concept in the form of bread and beyond was a

worthy deal.The population comprises several ethnic groups. As of 2009, the Punjabi

population dominates with 78.7 million followed by 27.2 million Pashtuns, 24.8 million

Sindhis, 14.8 million Seraikis, 13.3 million Muhajirs and 6.3 million Balochs. The remaining

11.1 million belong to various ethnic minorities.

In 2007, Standard Chartered Bank analysts and State Bank governor Dr. Ishrat Husain

estimated there were 30 to 35 million Pakistanis earning an average of $10,000 a year. Since,

we are living in Lahore and most number of outlets is also in Lahore so the target market

estimates and market segmentation is also done for Lahore.

Our target market includes:

• Male 25%

• Female 55%

• Adults 15 %

• Kids 5 % ( influencing their mothers to buy them mostly)

Potential market:

Bread and beyond current target and available market is the upper class segment as we

mentioned above but as we can see the current trends of the middle class segment here is a

quiet revolution and a clout which is rising.The study, conducted by the Pakistan Institute of

Development Economics (PIDE), finds that the size of the middle class in the country is 61

million people.Understandably the middle class is found to be more of an urban phenomenon

with its size being much larger in urban areas at both national and provincial levels.

Looking at provincial differences in the size of the middle class, Punjab has 37 per cent

middle class followed by Sindh 36 per cent, Khyber-Pakhtunkhwa 32 per cent and

Balochistan 29 per cent.

Interesting trends, however, are observed in rural and urban areas. Among urban areas, Sindh

has the largest proportion of the middle class at 56 per cent followed by Punjab 55 per cent,

Balochistan 50 per cent and Khyber-Pakhtunkhwa 49 per cent.

Punjab’s rural areas have the largest middle class at 24 per cent followed by Khyber-

Pakhtunkhwa 22 per cent, Sindh and Balochistan 17 per cent each.Pakistan has a bigger share

in middle class than all other countries including India.

Market segmentation:

Market segmentation of bread and beyond is done on the basis of four market demographics

which include geographic segmentation, demographic segmentation, psychographic

segmentation and behavioral segmentation.As, we mentioned above that the target segment

of bread and beyond is upperclass of Lahore. The concept of bread and beyond was targeting

the upper class because upper class has 60 -65 % of total money of the country, so catering

this niche yet profitable segment was the target of bread and beyond.

Let’s define the above mentioned four market segmentationcriteria’s for bread and beyond:

1. Geographic segmentation:

Bread and beyond geographic segmentation is currently in Punjab province. And within

Punjab cities include Lahore, Islamabad, Rawalpindi and Faisalabad.

Lahore segmentation:

Bread and beyond outlets are segmented in geographic locations and areas that contains

more of people that belongs to upper class. Its outlets are located in following areas:

• HKB Departmental Store Y Block Market, DHA, Lahore

• Europa Store H Block Market, DHA, Lahore

• Gymkhana Shoppe The Mall, Lahore

• Swera Departmental Store Main Boulevard, Opposite Main Market, Shadman,

Lahore.

• Upcoming outlets:

• PACE Shopping center Main Boulevard Gulberg Lahore.

• PACE Shopping center New Building, Model Town Link Road, Lahore

• Swera II Departmental Store Punjab Society near Wapda Town, Lahore.

• Gas station segmentation is also there and selection of TOTAL petrol and CNG

pump was done after a survey that resulted inthat mostly upper class fulfills their

petrol and CNG requirements from TOTAL pump. And TOTAL pump has also

very sophisticated tuck shop. Keeping the perishable nature of bakery items bread

and beyond has just introduced its sandwiches range of BBQ sandwich, chicken

tikkasandwich, chicken sandwich, chicken bran bread sandwich, and club

sandwich along with few quantity of their cookies and muffins estimated

according to the daily demand of customers.

2. Demographic segmentation:

Variables defined for bread and beyond demographic segmentation are given as follows:

Gender: includes both male and female and kids.

Age: kids (5 to 14), male (20 to 65), female (20 to 55).

Income (1 lac plus).

Size of household(2 to 5) people including kids.

Education:for male and female is graduate and masters, for teenagers it is O’ level

and A- level mostly.

Occupation: business class, professional occupations.

Location:currently in DHA, cantonment, shadman. Upcoming in model

town,Gulberg and wapda town.

GDP:123 billion belongs to upper class.

Annual growth rate of Lahore population:3.32%

3. Psychographic segmentation:

Lifestyle: bread and beyond focused also on the life style patterns of its target market

i.e. upper class on the basis of how they spend their time, energy and money. E.g.

Time i.e. what activities they indulge in their leisure time. Bread and beyond

consumers have usually lavish life style. They are health conscious and fitness holic

people. They have joined gym and attend social parties etc.

Brand personality of bread and beyond consumers is:Sophistication(upper class and

charming), competent and innovators (reliable, intelligent and successful),and

achievers.

4. Behavioral segmentation:

Bread and beyond consumersusually play decision roles that have very strong

influencing power. They are usually initiator and influencer as they belong to upper

class i.e. niche of bread and beyond.

As the consumers of bread and beyond are upper class category people they have very

fast moving life style too so they prefer ready made products more so they usually

buy bread and beyond products when they usually go for work, getting lunch for their

kids while dropping them to school in the morning, or while driving back to home

while picking kids from school or coming from their work, and they also buy during

their snack products for evening tea and also for guests serving.

These consumers are road warriorsi.e. they can pay premium for quality and

products that match with their life style taste preferences.

Their user statusis: heavy users.

Their usage rateis: heavy to large.

Their loyalty statusis: hard core sometimes but mostly split loyals. I.e. loyal to two

or three at same time. Where ever they get good quality products/ services they will

go for it.

Their attitude is mostly positive and enthusiastic.

Positioning:

Under the parent name of DAWN which define quality, freshness and reliability. Bread

and beyond is positioned and aims to position itself in the market i.e. in the minds of

consumers as a safe, healthy and naturally fresh source of bakery products under the

concept of live bakery.

Competitors:

Direct competitors:

• Jalal sons (they are also giving live bakery concept).

• Kitchen cuisine

In Direct competitors:

• Gourmet bakers.

• Shezan.

• Café masooms.

Green marketing by bread and beyond:

Bread and beyond ideology is based on freshness, safe and healthy bakery products so

bread and beyond also uses such material that is fresh and depicts greenness of its bakery

products. Live bakery concept shows how much level of freshness is there and by not

using any outdated or expired material in their products. They aren’t using plastic

shopping plastic shopping bags. But if we see the green marketing strategy matrix then

they are lying in the lean green matrix because they he aren’t very high on the green

marketing and they also hesitate to show much.

Product line:

1. Bread

White, Bran

Plain, Pita

Whole Meal

Multi Herb

Oregano

Oatmeal

Sundried Tomato,

Ciabata,

Foccacia

Herb

Walnut

Multigrain

Mini Baguette

Corn

Onion

Sandwich

2. Baguettes

Plain

Bran

garlic

3. Bread rolls

Bran

Plain

kalongi,

Poppy seed).

4. sandwiches

B.Q Sandwich

Tikka Sandwich ,

Chicken Salad,

Chicken TikkaSandwich,

Chicken BBQ Sandwich,

Roasted Chicken Sandwich ,

Chicken Salsa Sandwich ,

Chicken Salad in Croissant ,

Croissant Sandwich chicken

Grill Chicken in Bran Bread ,

Grill Chicken ,

Bran Classic ,

Classic Sandwich ,

Club Sandwich ,

Grill Chicken in White Bread,

Mustard Olive Chicken, Mushroom Chicken Sandwich).

5. cookies

Chocolate Chip

White Chocolate Chip

Double Chocolate Chip

Assorted Biscuit

Oatmeal Raisin

Multi Cereal Dates

Almond.

6. Pastries

Pineapple

Apple

Blueberry

Chocolate Pillows

Strawberry

Apricot

Custard Cream

Custard Cream Chocolate

7. muffins

Plain

Apple

Cinnamon

BananaNuts

Chocolate Chip

Blueberry Explosion

Bran

Pineapple Coconut

8. Pound cakes and cakes

Old Fashion Butter

Choco Vanilla Lemon

Butter

9. Pizza

Tikka

Ala Fungi

Romana Pizza Margaretta

Mini Pizza Chicken Tikka

Chicken Tikka

Mini Pizza Chicken

Fajita,Chicken

Mini Pizza Chicken Tandoori

Mini Chicken Pizza

10. Croissant

Chocolate

MiniChocolate

Plain Butter

Plain

Mini Plain

Coffee

Cheese

Almond

11. Patties

Chicken Sausage Puff,

Mushroom AlferadoPuff,

ChickenKhara Masala Puff

Chicken Kabab

Chicken White Sauce

Chicken Green Masala Puff

Vegetable Curry Pattie

Chicken Shaslik Puff

Tuna Puff

Chicken Tandoori Puff

Chicken Pahota PuffChickenTikka Puff

12. burgers

Chicken Chilli Garlic Burger

Hot Dog Chicken Burger

Hot Dog Beef Burger

Chicken Shawarma,

Chicken Roll

Vegetable Roll

Chicken Sausage Roll

Chicken Kabab Roll

Chicken Sausage Toast

Chicken Kabab Toast

13. Brownie

Plain

Triple Chocolate

Triple Decker

Walnut

Hazelnut

Almond

Chocolate Fudge

Vanilla Fudge

14. Burger buns

• Plain

15. Tart

• Plain lemon

• Red berry cheese

16. Rusk

• plain

17. Soup stick

• Plain soup stick

18. Frozen

19. Miscellaneous

Available products on outlets:

Bread and beyond offers more than 19 varieties of bakery items but in their live bakery

outlets exclusive for bread and beyond bakery products doesn’t have all the products

available in their outlets, i.e. every product has only few most demanded product varieties

available. The products that are available are given has follows:

Product Product variety

• Bread • White

• Bran

• Plain

• Pita

• Whole Meal

• Oregano

• Oatmeal

• Herb

• Walnut

• Multigrain

• MiniBaguette

• Onion

• Sandwich

• Baguettes • Plain

• Bran

• Bread rolls • Bran

• plain

• kalongi

• Sandwiches • B.Q Sandwich

• Chicken Salad

• Chicken Tikka Sandwich

• Roasted Chicken Sandwich

• Chicken Salsa Sandwich

• Grill Chicken in Bran Bread

• Bran Classic

• Classic Sandwich

• Club Sandwich

• Grill Chicken in White Bread.

• Cookies • Chocolate Chip

• Assorted Biscuit

• Oatmeal Raisin

• • Almond.

• Pastries •

• Apple

• Strawberry

• • Custard Cream

• Muffins • Plain

• Cinnamon

• Chocolate Chip

• Bran

• Pound cakes /

cakes

• Old Fashion Butter

• • Choco Vanilla Lemon

• Pizza •

• Mini Pizza Chicken Tikka

• Chicken Tikka

• Fajita,Chicken

• Mini Pizza Chicken Tandoori

• • Mini Chicken Pizza

• Croissants • Chocolate

• Mini Chocolate

• Plain Butter

• Plain

• • Almond

• Patties • Chicken Sausage Puff,

• • Mushroom Alferado Puff

• Burgers • Chicken Chilli Garlic Burger

• Hot Dog Chicken Burger

• Hot Dog Beef Burger

• Chicken Shawarma,

• Chicken Roll

• • Vegetable Roll

• Brownie • Plain

• Walnut

• Almond

• • Chocolate Fudge

• Burger buns • Plain

• Tarts • Plain lemon

• Red berry cheese

• Frozen • Micelle nous

• Soup stick • Plain soup stick

• Rusk • Plain

Frequently purchased products by consumer:

Price range of sandwiches:

RS. 65 TO RS. 135

Most purchased sandwiches and their price:

Chicken tikka – RS.135

Chicken fajita- RS.135

Plain chicken salad sandwich-RS.65

Club sandwich – RS. 115

Shelf life:

• Expiry date is there for sandwiches which is a week.

Distribution:

Distribution strategy:

Exclusive distribution strategy is used where selective retailer like al-fatah, HKB,

swerastore, Europa store, gymkhana shoppe mall of Lahore, and TOTAL pump have

bread and beyond products.

Exclusive bread and beyond outlets that are located in main market, DHA and model

town.

Incentive plan for suppliers include discount offers.

FIFO (first in first out)method is there.

Distributor’s incentive is based on defined monetary value on regional and local level.

Promotion:

Newspaper insert in daily times newspaper.

Ad in Sunday daily times

Facebook fan page (contests are there to promote their products and involve

consumers and engage them either in conversation or contest, content marketing plays

very important role for bread and beyond Facebook fan page).

Hoarding.

Public relation events are there while inauguration of theirnew outlets or any new

product range which involves media, daily times coverage.

Advertisement is mostly done whole year but in few months they are advertised regularly

four weeks in a month they advertise in interval i.e. if they are advertising in January all

month then next month they will advertise once only and so on for whole year. Excluding

muharam month they don’t advertise in this month.

Promotion expenses:

For Sunday daily time the cost of each ad is Rs. 25,000, and Rs. 3000 for the design

they get from their ad designers which they outsource from outside agency which

makes e. Size of ad in Sunday daily times covers the whole page of A4 size. Expense

of ad around RS.28, 000i.e. For11 inch length and 7 inch width. Daily time’s policy is

that you have to pay for whole page and not certain space on it.

For certain space they advertise in newspaper i.e. daily times in form of newspaper

inserts. That costs them Rs.15, 000 for 5 inch length and 6.5 inch width.

Total budget for bread and beyond social media promotional activities is RS.100, 000.

They invest maximum in social media. I.e. Facebook.

Social responsibility by bread and beyond:

• They are involved in social responsibility by giving funds to different dumb and deaf

institutes.

Sales Data of sandwiches:

Bread & BeyondData of Sales

                           

Description

Avg Daily Sales

Montly Sales

Quarterly Sale

Annual SaleOutlet 1

Outlet 2

Outlet 3

Total Unit

Sales on Own

Outlets

Retail Points

Total No. of Retail Points

Total Daily Sales

on Retail

Outlets

Total Unit Sales

PriceSale

Amount

Simple Club Sandwich

2 3 3 8 2 35 70 78 60 4680 140,400 561,600 2,246,400

Chicken Tikka 10 8 11 29 5 30 150 179 130 23270 698,100 2,792,400 11,169,600

Chicken Fajita 11 9 12 32 3 30 90 122 135 16470 494,100 1,976,400 7,905,600

Others 3 2 2 7 2 25 50 57 145 8265 247,950 991,800 3,967,200

Total 26 22 28 76 12 120 360 436 470 52685 1,580,550 6,322,200 25,288,800

                                                                                 

Demand estimation for bread and beyondsandwiches :

Bread & BeyondEstimating Demand for Sandwiches

                                                  

CityPopulation (Millions)

Urban Population of Lahore

Target Class

%age of

Class

Total Population

in Class

%age of sandwich users in Upper class

Consumer of

Sandwich in Class

Weekly Consum

ption Rate

Forcasted Demand Weekly

Monthly Quarterly Yearly

Lahore 10,720,000 8,683,20

0 Upper 2% 173,664 77% 1,337 3

4,012

16,047 48,140 192,559

      Middle 28% 2,431,296 31% 7,415 2 14,83

1 59,324 177,971

711,883

      Total       8,753   18,843

75,370 226,111 904,442

                                                    Market Share of B&B 70%                                           

 Demand for B&B Sandwiches

633,109                  

                         

Marketing mix model:

First of all, let’s give a little reminder on what paradigm shift is and how and why it’s

interlinked with the variations that will in result bring paradigm shift in the product itself.

For the purpose of bringing a paradigm shift i.e. a fresh air or a new change into the

existing situation or strategy of the product on the basis of 4P’s of marketing, it’s very

important to understand that paradigm shift focus will be on one of the P’s of the

marketing mix but eventually the other P’s will automatically change to a paradigm shift

too because when we want to being paradigm shift we have to cross evaluation also to

see whether the other department that of the company and the experts in those department

dealing with price, promoting, placement and product itself are agreed to the paradigm

shift in the product on the basis of constraints like cost, time and the resource .

From the bread and beyond company we have selected the product which is sandwich, so

the paradigms shifts will be brought within sandwiches in the form of three different

variants. Let’s give an overview of the three variants:

1. First variant of bread and beyond sandwich :

Our first paradigm shift will take place in the form of a variant of sandwich. According to this

variant we will be offering the variation in the product itself on the basis of its shape, size,

and packaging. Three different sizes of meals will be offered along with associated products

(juice, milo, tea, coffee, beverages, energy drink as well), linked to this meal that would be

available in three different sizes, i.e. small, medium and large. Along with this meal variation

we will also bring a special variation in the size, shape and packaging of sandwiches for kids,

i.e. Sandwiches will be shaped in form of kids most wanted and favorite cartoon characters.

Let’s now see its marketing mix model:

1. Product (sandwich):

As we have above mentioned that the product will be sandwich and the variations we will

bring would be in packaging, size, shape, and colorand images. These would change

according to occasion wise e.g. package and color and images on it would be different for

eid,Christmas, New Year etc.

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There would be three different sizes i.e. small, medium and large. The sandwich we will use

for this variant of three different sizes initially we would offer inmost purchased and

sandwiches by the consumers which are chicken tikka, chicken fajita, club sandwich, bran

chicken sandwich and simple chicken salad sandwich which are bought 80% more in

comparison to other available sandwiches. These meals would be then served like a combo

combined with two associated product.

• The associated products for sweet category will also include the most

purchased and bought sweet items , which are pastries, brownies, muffin ,

cookies and pound cakes. These are also bought more than 70 % in

comparison to other sweet category products of bread and beyond. The reason

behind going for associated products is because bread and beyond wanted to

create a brand portfolio i.e. combination of two or more products together in

order to meet the multiple segment of different age group and different taste

preferences. In order to attract our target segment so they don’t switch to other

brands for more variety combined under one combo or meal package. By this

we will be able to gain product differentiation because as such above

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mentioned earlier competitorsaren’t offering meal packages.so bread and

beyond will fill the value gap.

• Beverages category would include: nestle juices, milo, instant tea,coffee, and

energy drink that will be red bull.

• These packages would also be available for birthday’s party, business

conferences, seminars, engagement party and many more occasions.

These meals will also be given the choice of customization i.e. they can tell what sandwich

they want in the combo along with what sweet product they want i.e. pastry or cookie or

muffin and what beverage they want e.g. tea , coffee , juice etc.

Packaging will be doneaccording to size. I.e. small,

medium and large

Target market for this combo meal:

• Male

• Female

• Adults

• Working class

• Professionals

• Teenagers

• College going students

• School going students

• House wives (who mostly have to deal with breakfast purpose i.e. what they give to

their kids for school, and these meals can be used for tea time and snack time

purpose).

27

For kids:

The variations in the size,shape, packaging and color combination would be very different

and interesting keeping the age and interests of young little kids. Wewill give them meals

I.e. combo just like we will be giving to above mentioned target segment for those

combos. But the difference would be in the shape that would be mostly in different

cartoon characters.

The package would also be based on different cartoon characters that most famous in

young girls and boys.

This will include initially:

• Benten

• Angry birds

• Superman

• Barbie.

The sandwiches available for kids would be:

• simple chicken salad

• sandwich and chicken tikka and

• Chickenfajita, keeping the spice level low according to kids taste buds.

Product level: the customer value hierarchy:

28

With this variant bread and beyond can reach to the level of augmented product and hence

meet the value gap and give value to the end consumers. Before this variant bread and

beyond is limited to the level of expected. This variant will help them attain more sales, more

satisfied customers.

Price:

Bread and beyond pricing strategy is cost plus profit pricing strategy. Cost plus 20% profit.

So, for meal combo package in 3 different sizes price would be as follows:

Small meal, Combo 1:

• Chicken tikka= rs. 105

• Nestle juice/milo/tea = rs. 25

• Plain Muffin/ pastry/cookie/pound cake = rs.45.

29

Total175 + 40 is the profit.

Price =rs.215

In case of beverage as red bull ( rs. 65) price would be = rs.235

In case of simple coffee ( rs. 35) it will be = rs. 225

*Different coffee flavors price will vary accordingly.

Medium meal, Combo 2:

• Chicken tikka = rs. 125

• Nestle juice/milo/tea = rs. 25

• Plain Muffin/ pastry/cookie/pound cake = rs.45.

Total 195 + 40 is the profit.

Price = rs.235

In case of beverage as red bull (rs. 65) price would be = rs.275

In case of simple coffee (rs. 35) it will be = rs. 245

*Different coffee flavors price will vary accordingly.

Large meal, Combo 3:

• Chicken tikka = rs. 135

• Nestle juice/milo/tea = rs. 25

• Plain Muffin/ pastry/cookie/pound cake = rs.45.

Total 205 + 40 is the profit.

Price = rs.245

30

In case of beverage as red bull (rs. 65) price would be = rs.285

In case of simple coffee (rs. 35) it will be = rs. 255

*Different coffee flavors price will vary accordingly.

Placement:

As the variant we have mentioned above will be different for kids and different for other

target market defined above i.e. male, female, working class etc. so the distribution

techniques and strategies would different too.

For target segment other than kids distribution would be like this:

Distribution for kids:

Online distribution for both target segments:

• Through website they can select the meal packages and also other products other than

combo meals package anorder online and delivery would be free only for the area in

which the outlet exists. These areas include DHA, Model town, and main market.

31

• Using the social media toolkit which includes Facebook, twitter, where they are

connected to the fan pages and they have made a special option for placing orders by

connection directly from their Facebook and twitter profiles to their website where

consumers can order and they will be giving option of paying through credit card or

direct payment, order is selected and delivered within 45 minutes.

• Call on their numbers and get the order delivered.

Promotion:

• Social media (Facebook)

• Hangers placed on the electric polls on the small green belt within the middle of the

road. These bannerswill be used in DHA Y block market road, main market round

because these are the most populous areas where maximum number of upper class

visits for their shopping purposes, these banners will be used 1 km before that

reaches the traffic signal poll of above defined areas. Each banner would be of 30 inch

width and 40 inch length and as we are using two areasinitially and for each area 1 km

and in 1 km 10 hangers will be used and for 2 area’s we need 20 bannerthat will cost

Rs. 2000 Per banner. Total cost becomes Rs.40, 000. Butbread and beyond will

outsource same agency it uses for its ad design in Sunday daily times.

And RS. 8,000 for each area that makes rs.16, 000. Total cost Rs.46, 000.

• Retail store (al- fatah, HKb, floor posters ads). The space taken on the floor would

be90*135 cm. that will cost Rs.8, 000 for each floor ad. Total is Rs.16, 000.Agency

would remain same for this as well.

• Live models (letting consumers taste and know their live feedback). Stalls will be own

property of bread and beyond.

• Cricket ground advertisement whenever some tournament will take place in Lahore

and on both local and international level,for qaddafi stadium the cost of board will be

Rs. 2500 and for local ground opposite qaddafi stadium is Rs. 1500 perboard.

• Morning shows i.e.promoting. Breadand beyond sandwiches and meal packages and

kids packages , uthojago Pakistan on geo TV, the sandwiches , muffins, cookies,

pastries and pound cakes will be introduced which will cost on per unit cost of each

item introduced or used in it plus the fee of TVchannelpromoting bread and beyond.

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Cost will get to Rs. 50,000 for 1 day including the products that are used, banners for

promotions.

• Cinema curtain flowing with bread and beyond sandwiches and meal and kids

packages promotion only in DHA cinema that will cost around Rs.1000 per frequency

and frequency would be according to shows in 1 day in that cinema which is 3 shows

in 1 day means 3 exposure and 3 frequencies. This makes total cost of Rs. 3000.

• Local buses advertisement i.e. posters on buses that routes to model town only will

cost Rs. 4500 for only 90*135cm space on the bus initially only 1 bus will be used .

• Mobile instant messages containing new offers to existing consumers.

• Physical marketing i.e. Parks bench shaped into a sandwich and Hyper star, metro ,

makro elevators with bread and beyond ads will be used in DHA y block park. Only

two benches that are located in the most populous side of the track of the park will be

shaped according to bread and beyond logo that costs Rs. 5000.

• Putting website on notepads, pens, newsletters, bumper stickers, coffee cups being

used in bread and beyond outlets and retailers and total cng pump and distributing

them to target segment of consumers. That will be bread and beyond own property.

Total budget for promotion for this variant isRS. 127,000.

2. Second variant of bread and beyond sandwich:

Our second paradigm shift will take place in the form of a variant of distribution.

According to this variant we will be offering the variation through a distribution

channel of mobile van named “eat fresh”. Eat fresh Van will provide our most

purchased product to the university/college students of A+ with in the

university/college premises. Here we can also provide our customers with our first

variant of combo meal packages including sandwich of their choice, a sweet baked

item and a coffee or tea. The colleges/university might include Aitcheson College, FC

College, Kinnaird College, Lums, NCA FAST NU and GCU. Eat Fresh sales

comprise the process of selling the goods from distributor to customers through van.

This mode of distribution will makes our product within the range of our selective

target A+ customer as it eliminates all the distribution layers between the producer

and the buyer.

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Description Cost

Vans Rs 600,000-700,000 per van

Glass Refrigerator with capacity of 50 cakes of 1pound Rs. 270,000-300,000

Fuel Charges Diesel: 107 per litre

Petrol: 103.36 per litre

Monthly Service Providing Staff 10,000 per person

Product Mix:

Our product mix would consist of our most purchased products like pound cakes,

pastries, pizzas, patties, rolls, brownies and cookies. Here we will offer the medium

sized combo packages instead of offering large sized combo packages at relatively

lower price than the large size. The size of the above stated individual items would

also be relatively smaller than the normal large sized items at a lower price range.

This would give our customers a perception of lower price as our customers in this

case are students who are somewhat price sensitive and also this strategy would give

them a room and craving to buy more due to its size. The Eat Fresh Vans would also

have the glass refrigerators for maintaining the freshness of the bakery items offered.

Price:

The pricing mix for this variant will change as we are following the direct Sales

distribution model which increases the availability factor to the customer and would

also address the freshness and hygienic factor ultimately increase the customer

reference pricing for the products. So would charge a higher price to the medium

sized meals as compared retailers. Here all the costs from the Van services will be

covered by the profit margins of reference pricing.

Pricing mix of items in B&B Bakery Pricing Mix of items using Eat Fresh Vans

• Medium Chicken tikka Rs. 125 Medium Chicken Rs. 135

• Medium Plain Muffin/ pastry/cookie/pound cake Rs.40 Medium Plain

Muffin/ pastry/cookie/pound cake Rs. 45

• Coffee/ Tea Rs. 30 Coffee /Tea Rs. 35

Total 200

Total 215

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Distribution:

The distribution technique used in this variant of Eat Fresh Vans is called direct sales

distribution model according to which all the intermediaries in the conventional distribution

of the consumer goods are eliminated giving an extra control to the company over the

product. But it is the most costly one because it requires large number of direct distribution

tools like vans. Since our vans can be used as both the distributional tool as well as a

promotional tool so we would have a margin to save our costs on these lines. Using this type

of distribution we are basically exclusively targeting our selective customer i-e the A+ and

upper middle class within the described boundaries of universities and college. we have used

Eat Fresh Vans as our distributional tools because:

• Gets target customer’s attention.

• Helps the customer to see the value of the product or service.

• Makes the customer feel comfortable that the seller can be trusted and the product is

easily available.

• Ensures that the customer has a way to receive the goods or services.

Fig: Conventional Distribution Channels

Fig: Direct Sales Distribution Model

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Promotion:

The promotional tool in this case would be the Van itself as it would only be in the college

premises continuously roaming around at specific hours. The Eat Fresh Vans would be

decorated with the bran brown color of bread and beyond emblem with the pictures of

pastries, sandwiches and cakes on it. Here positive word of mouth would also come into play

as it is a unique, fresh and easily available service so the demand of customers would

increase drastically as compared to the competitors. Putting website on notepads, pens,

newsletters, bumper stickers, coffee cups being used in the Eat Fresh Vans and distributing

them to target segment of consumers. Mobile instant messages containing new offers to

existing consumers can also be used here.

3. Third variant of bread and beyond sandwich :

Our second paradigm shift will take place by keeping our focus on promotion. According to

detail analysis we came to know that brand awareness of Bread & Beyond is not sufficient in

target market. Plenty of our target market is still unaware about our brand especially upper

middle class due to lack of promotional activities. Currently company is only using one of the

variables from promotional mix i.e. advertising and in Advertising they are currently using

only news paper insert and an ad in Sunday magazine of Daily times. They have also created

a facebook page for promotion with the help of creating a small contest in which users are

asked to attract their friends towards the page and like it. However I think so they are lacking

behind in their promotional activities from their customers.

Let’s now see its marketing mix model:

2. Product (sandwich):

Our product is fresh and hygienic sandwich for the

people who usually want to eat fresh and healthy diet.

Our product has 400 to 600 calories as it is available in

17 different varieties. The detail of each product mix is

given below: -

Size: The product is available in standard size i.e.

Medium or we can say half bread size.

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Shape: The product is available in only one shape which we can usually see for sandwiches

i.e. Triangle shape.

Product Variety: The product is proposed in 17 different delicious varieties but currently it

is offered in 7 different verities anging from simple club sandwiches to chicken tikka,

chicken fajita, chicken BBQ sandwich, chicken salad, roasted chicken, and chicken salsa

Packaging: The packaging for product contains a thin paper on which logo of Bread &

Beyond is printed and a white color strap is rolled around the package.

Price:

The pricing strategy of Bready and beyond is simple cost plus profit. The target profit for

each product is 20%. Hence the price formula for each product is

Price = cost +20% profit

Price of each category of sandwich is given below

Simple club sandwich Rs. 65/-

Chicken tikka Rs. 135/-

Chicken fajita Rs. 140/-

Chicken BBQ sandwich Rs. 135/-

Chicken salad Rs. 95/-

Roasted chicken 155/-

Chicken salsa 165/-

Placement:

Distribution is the most important part of the marketing plan for the food items. The

production facilities are in company own factory. While it has its own 3 outlet in high class

areas of Lahore i.e. Model Tow, Main market and DHA phase IV. Bread & Beyond uses its

own vehicles to carry out products from factory to the company own outlets.

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Company is also distributing its product to retailer. The company is currently working with

more than 500 big and small level retailers.

The diagrammatic view of distribution of the product is like this.

The big retailers of the company includes

HKB

Al-Fatah

Sawera

Srmad Store

Retail Contracts

In order to smooth functioning of business with retailers company has signed legal contract

with all of its retailers which include clears term regarding the delivery timing of the

products, trade prices of the products, expiry back of the products, penalty in case of back out

before expiry of contract and incentive given to the retailer.

Retailers Incentive and Payment Plan

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The incentive given to the retailers is the margin from the retail price and trader price. The

margin is 10% for all small retailers however big retailers like HKB, Al-fatah, Sawera put the

prices of the products according to their plan with the consent of the company. The payment

to retailers is made on monthly basis.

Promotion:

Promotion has been defined as the coordination of all seller initiated efforts to set up channels

of information and persuasion in order to sell goods and services or promote an idea. Because

our focus of bringing paradigm shift is on promotion so we have designed our promotional

campaign very carefully. I have selected following promotional tool to design my

promotional campaign

Advertising

Public Relations

Sales Promotion

Advertising

Advertising is the best-known and most widely discussed form of promotion, probably

because of its pervasiveness.

For advertising I m going to used following medium

Newspaper

Local Cable TV ads

Hangers

Skins

Newspaper

For news paper advertising I have selected Daily Jang, Daily Times on fortnightly basis. The

add will be focusing on fresh and hygienic aspects of the sandwich.

The detail is given as under: -

Sr. No.

Name of Newspaper

No. of ads Size of Advertiseme

Rate of

Amount Charged

39

s /month nt

front Page ad/day Monthly

1Dawn 2

Quarter Page (Front Page)

14,040 28,080

2 Daily Jang 2 7 cm x 1 col 3500 7000/-

Total= 35080/-

Local Cable Tv ad

Name of

Cable TV

Timing Days to run Frequency Total Cost in campaign

World Call

8:00 Pm to 11: 00 PM

15After every 15

Min80,000/-

Wateen 8:00 Pm to 11: 00 PM

15After every 20

min50,000/-

Prime 8:00 Pm to 11: 00 PM

15After every 15

min65,000/-

TOTAL 195,000/-

Hangers

Hangers will be placed on pools on the road for the distance of 50 meter. The size of the

hanger will be 5’x3’. For placing hangers on the roads in Model Town, Main market and

DHA we will first take permission from Director Public Relation of these areas mentioning

the duration and areas where we will place our hangers. The cost of each hanger Rs. 2000/-.

We will be required 20 hangers to cover 1 km of distance. So the total cost for hangers will

be 40,000/-. While for placing hangers we will have to pay Director public relation 20,000/-

for grant of permission as fee for each three areas.

Skins

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Skins containing the message of hygienic and fresh products will be placed in retail shops.

The skin will contain the message of fresh and healthy diet and the calories for sandwiches

will be mentioned on it. Initially we have planned to place the skins for 15 big retailers. The

cost for each skin will be Rs 4000/- which will include the cost of the stand. So the total cost

for skins will be Rs.60,000/-

Public Relation

A public relation is defined as “the management function which evaluates public attitudes,

identifies the policies and procedures of an individual or organization with the public interest,

and executes a program of action to earn public understanding and acceptance.”

For this promotional mix I have selected special publication of Bread & Beyond which

contains the healthy diet plan for the customers. It also contains the information about the

products of bread and beyond and calories will be mentioned for each of the product.

Sales Promotion

The next variable in the promotional mix is sales promotion, which is generally defined as

those marketing activities that provide extra value or incentives to the sales force, the

distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is

generally broken into two major categories: consumer-oriented and trade-oriented activities

and I have included both of them for boosting the sales of sandwiches

Consumer-Oriented Sales Promotion

This is the sales promotion activity for consumer of the product. In this activity Cold drink

like Coca Cola is integrated with the product if consumer will make 3 purchases or more they

will be offered disposable Coca Cola (220 ml) for each three units of the product.

Trade-Oriented Sales Promotion

This is the promotional activity for medium and small level retailers. They will be given sales

targets on monthly basis and if a retailer will be able to meet its target they will be offered

10% discount for next supply of sandwiches which will be added in their profits.

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