Volka Market Segmentation (repaired).docx

Report on

Strategic Marketing

Visited Organization

Volka Foods International

Project Supervisor

Dr. Muhammad Rizwan

Authors Name Muqaddas Waseem (Leader)

41

Awais Akram

06

Ahsan Altaf

42

Muhammad Rehan Rafique

36

Class

MBA (Morning) 1st semester

Session

2019-2020

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Contents

Executive Summary............................................................................................................... 4 Introduction ........................................................................................................................... 5 Volka International ................................................................................................................. 5 Volka Pakistan........................................................................................................................ 6 History .................................................................................................................................. 7 Volka Food Situation............................................................................................................. 8 PHILOSOPHY OF FULFILLMENT.............................................................................................. 9 Volka Food Scope .................................................................................................................. 9 Volka food Context .............................................................................................................. 10 Volka Food Vision ............................................................................................................... 10 Volka Food Mission ............................................................................................................. 11 Volka Food Goals................................................................................................................. 12 Volka Food Goals................................................................................................................. 13 Official goals .................................................................................................................... 13 Operative goals .................................................................................................................... 13 Cores values and principles .................................................................................................. 13 Organogram of Volka Food ................................................................................................ 14 Volka Food Departments..................................................................................................... 15 Marketing Mix ..................................................................................................................... 16 Product: ................................................................................................................................ 17 Product line: ......................................................................................................................... 17 Cookania............................................................................................................................... 19 Distribution Channel ............................................................................................................ 22 Corporate social responsibility of Volka food; ................................................................... 25 Market Environment Analysis ............................................................................................ 25 Portfolio Analysis ................................................................................................................ 25 Star ………………………………………………………………………………………...26 Cash Cow ............................................................................................................................. 26 Question Mark ...................................................................................................................... 27 Dog……… ........................................................................................................................... 27 2|Page

Conclusion for BCG Matrix ................................................................................................. 27 SWOT Analysis in Volka food .................................................................................... 27 PESTEL ANALYSIS:- ................................................................................................ 29 Porters Five Forces ...................................................................................................... 35 Market Segmentation ................................................................................................ 37 Volka Food Strategy ..................................................................................................... 40 Market Success Story................................................................................................. 41 Evaluation .................................................................................................................. 42 Short analysis in terms of working environment ......................................................... 42 Recommendation of Volka food ……………………………………………………42 References……………………………………………………………..........………………..43

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Executive Summary This project was assigned to us by respected Sir Muhammad Rizwan related to strategic marketing. The project is on Fast Moving Consumer Goods. (FMCG) industry i.e. VOLKA FOODS INTERNATIONAL. This is comprehensive report on different departments of volka foods international especially it is concerned with the marketing department and it evaluates the firm on different analysis which help in determining company’s strategic positioning and how it is performing in the marketing relative to its competitors. As we all know the volka is a single member private company. Volka is mega structure of SM group, which has been successfully operating in the field of confectionary and bakery items from decade. Volka foods international have been exporting their products as well hence contributing to the economy of Pakistan as well. The company is chaired by Ch Zulfiqar Anjum and Ch Saim Zulfiqar is the CEO of company. The report is based on different contents like introduction and history of industry how it survives and growth in the market and also analyze the firm on different analysis like SWOT which includes the strengths, weaknesses opportunities in market to look for and the threats to be avoided. PESTEL analysis which includes 6 different factors that might affect the organization in its external environment. And Competitor Analysis with respect to the competitors. As far as the data is concerned, we have collected data from different primary and secondary resources. Primary data includes the employs of VOLKA Specially Mr. Muhammad Ishfaq (Business Development Manager) who help us regarding our report and arrange our visit and secondary is from their website and other internet sources relative to the content. The purpose of this report was to see how the knowledge is implemented in practical, to intensify the confidence, to acquire some knowledge about the organization and it working environment.

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Introduction

Volka International

Volka Food International is a modern, state of the art production facility of confectionery and bakery products. They are specialize in providing hygienic products in line with international production standards. Their commitment to quality of our products and hygiene is unparalleled and that is what makes them who they are. We have a wide portfolio of products that have been in the market for several years. These include different types of confectioneries like jellies, chocolates, bubble gums, toffees and our range biscuits and cookies as well that will keep you coming back for more! Our products have been widely exported to international markets since 2009 and we have been growing at an exponential rate ever since. Due to our state of the art facilities and quality product manufacturing, penetration in global markets has been seamless. This has enabled us to withstand the capacity for accommodating all sorts of demands and buyer needs such as: Customized packaging - Private labeling - Design and development of packaging material for overseas clients. - Bouquet of products enables clients to choose variety of categories. At Volka Food International (VFI), our vision is to see beyond the present. We know that creating the finest confectionery and bakery takes more than a simple ingredient. It is about the finest manufacturing practices and human resources, which ultimately push us to transform into an even more dynamic and progressive management structure of the highest standards. We strive to keep pushing the boundaries of innovation to bring you the very best. Volka International handles the overseas operations of Volka Food International, which is a leading exporter of flavorful food products to different countries in Central Asia, Middle East, Africa and Europe Volka International is always on the. Lookout for new markets for Volka’s high quality food, bakery and confectionary products. Currently, Volka International is focused on expanding its footprint in the Far East, American and Australian markets. Countries in Central Asia, Middle East, Africa and Europe. 5|Page

Volka Pakistan

Volka Pakistan is the domestic chapter of Volka Food International. We are dedicated to manufacture, market and distribute wholesome, hygienic and heavenly confectionary, bakery and pasta products, all over the country. Headquartered in Multan, Volka Food International has territorial workplaces in each significant city of Pakistan. We owe its prosperity to the team of professionals who are driving hard to make Volka Food International the best brand in the market.

VFI is a modern and state of art production of Confectionery & Bakery Products. Our Aim is to produce Hygienic products with international standards of productions. It’s our achievement that’s why we proudly claim that we are producing unmatched “Safe to Eat" products. The vision to see VFI as a professionally managed Human Resource company, production of confectionery & Bakery with best manufacturing practices, by transforming a National company into a very dynamic and progressive management structure on Multinational standards. Now with the aid of modern technology, we are using best and latest technology. No other manufacturer comes closer. The company's focal point will remain on Children’s needs through Innovative Hygienic Products. In the era, where only productions are important, we believe productions with best practices. This website brings value to all our giggled customers by giving them values through our “Safe to Eat" products, in a way that will become the centre of attraction for you and for your loving children that will win your hearts with your confidence on our products.

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History a. 2007 The foundation was laid and the construction started in September 2007. b. 2010 • September 2010: installation of a mega plant of gummies and other machinery of confectionary items. •

June 2010, commissioning of plant took place.

•

Products’ trials and packaging development happened between July and September

2010. •

Huge investments were made in putting up yet another factory along with the import

of a gummy plant WDS from Germany, wrapping

machines from Japan, other

equipment from Italy, China and professional expertise from abroad and within the country. c. 2011 Volka started its export to many Asian, Gulf and European countries in September seeing a huge turnover of $1.8 M/year. d. 2012 • The brand became a huge hit. Giggly products were present all over Pakistan. • Jelly, our flagship category took its lion's share with 40% of market share in Pakistan's confectionary market. • The brand now has 20-30% market share in overall confectionary market (as per sales figure). • Way back in 2010 the company started off with a strength of 200 Sales work force which has increased to more than 350, along with a sole distribution network e. 2013 VFI started its operations in the country with an initial strength of 600 employees. Currently we have 1500 to 2000 work force.

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The company at present has an outstanding category portfolio, i.e. jellies, bubble gum, chew toffee, candies, lollypop, chocolates etc.

Head office 3km Bahawalpur bypass road, Multan, Punjab, Pakistan, N-5 Landline: +92-61-6527661-2 Fax: +92-61-6527663 Email: [email protected]

Volka Food Situation An uncompromising passion for quality and innovation, a world-class production, marketing and distribution infrastructure is the strength that defines Volka Food. Volka Food International's strictly adhere to the high standards as symbolized by F.S.C. Food served to the public must meet the company's excellence standards or it will not be served at all; the service must be fast and courteous; and cleanliness from kitchen to utensils, must always be maintained. The main situations are defined as given below. 1) Competitive position 2) Competitiveness changes 3) Strategic context 4) Performance improvement system

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PHILOSOPHY OF FULFILLMENT At Volka Food International, we follow a very simple ideology: FULFILLMENT. We believe everything we produce must be a source of fulfillment for our end consumer who struggle for taste and quality, our association must be a wellspring of fulfillment for our merchants, wholesalers, sellers and affiliates who aim for development and growth and last but not the least every moment of the day must be a cradle of fulfillment for our team who wishes to achieve excellence and glory in careers.

Volka Food Scope Volka food may take many forms depending on the type of project being implemented and the nature of the organization. The scope statement details the project deliverables and describes the major objectives. The objectives should include measurable success criteria for the project. The scopes of Volka food are defined as given below.

Our Effectiveness Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. Product development is very crucial for any

Performance Excellence An uncompromising passion for quality and innovation, a world-class production, marketing and distribution infrastructure is the strength that defines Volka Food. Volka Food International's strictly adhere to the high standards as symbolized by F.S.C. Food served to the public must meet the company's excellence standards or it will not be served at all; the service must be fast and courteous; and cleanliness from kitchen to utensils, must always be maintained.

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Succession Planning Identification and development of potential successors for key position in an organization through a systematic evaluation process and training Unlike replacement planning (which grades an individual solely on the basis of his or her past performance) succession planning is largely predictive in judging an individual for a position he or she might never have been in.

Team Intervention The purpose of this team is to help employees. Members of the team that are struggling in some way. This usually refers to performance but can include emotional and behavior and social concern.

Volka food Context The Volka food context refers to the scope of an entity, such as 1. parent organization (organization owning one or more entities) 2. enterprise (an entire organization) 3. division or department (a sub-organization within the overall organization) 4. work unit (a sub-sub-organization) 5. Work role (one person’s job or part of a job).

Volka Food Vision Our vision is to create a wide and innovative range of the most endearing brands and to be the market leader in confectionery and bakery production category. It is in our genes to love & protect our children. It is for this reason parents are extremely conscious of what children eat & whether the ingredients are healthy or harmful. So, we insist on only the very best for our products and processes. Our modern, world-class laboratory is staffed with highly skilled and experienced technical professionals and modernized equipment for ingredients testing. We are determined to maintain the quality through our strong procedures and standers.

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Volka Food Mission

Our Mission is to provide the high quality products while analyzing strong procedures and strict standards. At VFI, we focus on providing the consistent quality to our customers and we have achieved high level success in maintaining the persistent quality and procedures. Consistent quality cannot be maintained without strong Quality Checks and modern Research and Development at all levels. At VFI, our world class laboratory experts in examining regular hygiene check for every lot and SKU. Our team of experts consists of highly trained professionals, technical staff and latest equipment’s like Moisture Analyzers, Ash Determination equipment, Spectrophotometer and purity confirmation equipments for ingredients used in our products. Research & Development at VFI strives to anticipate changing needs and tastes and meet them accordingly. We have an experienced Confectionery and Bakery research staff that put forth ideas that are evaluated, refined, and transformed into an unmatched product made with only the very best ingredients sourced from all around the world. We have a Mission of "creative work undertaken on a systematic basis in order to increase our products and customers". We are our own competitors and believe in striving to continuously improve our products with changing times and trends.

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Volka Food Goals  Innovation  Responsibility  Team work  Ethics  Excellence  Trust  Customer  Goals

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Volka Food Goals

There are many advantages to establishing organizational goals: They guide employee efforts, justify a company's activities and existence, define performance standards, provide constraints for pursuing unnecessary goals and function as behavioral incentives. There are two main goals of Volka food. Official goals

In Volka food the official goals is detail a company's aims as described in their public

statements, such as the corporate charter and annual reports. They help to build the organization's public image and reputation. Operative goals

In Volka food the operative goals are the actual, concrete steps a business intends to take to achieve its purpose. A company's operative goals often don't parallel its official goals; for example, while a nonprofit volunteer organization's main official goal may be community service, limited funding might mean that its operative goal of fund raising will take precedence.

Cores values and principles

Our

Principle

of

Quality

Assurance

is

the

“OPPORTUNITY

IS

A

RESPONSIBILITY”, we at VFI not only maintaining the top Quality but focusing on improving our procedures by following strict standards. We believe in the principle of continuous improvement hence our purpose is to create every product flawless. Our focus is to provide delicious and hygienic products to every customer. We have managed to produce high standards in maintaining quality and creating values. This consistency could not be achieved and maintained without strict Quality assessment and innovative R & D at all levels.

Our philosophy and principles of good quality product is: 13 | P a g e



100% fulfillment with Standards and Specifications.



100% Customer Satisfaction as per their requirements.



100 % Hygienic Food, Safe to Eat.



100% Environmental Friendly processes

Organogram of Volka Food A company's organogram or organizational chart typically illustrates relations between people within an organization. Such relations might include managers to sub-workers, directors to managing directors, chief executive officer to various departments, and so forth. When an organization chart grows too large it can be split into smaller charts for separate departments within the organization. The hierarchy of Volka Foods is as follow

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Volka Food Departments All Departments of Volka Food are defined as given below.

HR & Admin Department HR & Admin department take cares of the human resources and their benefits and provide facilities to our employees for smooth working. Our environment is about empowering individuals to be successful in achieving business objectives and their personal career objectives. We work on policies, procedures, processes and systems that attract new pool of talented human resource towards us and satisfy our existing employees to enhance their utmost efforts towards the continuous improvement.

Marketing Department This department of VFI engages with our customers closely to understand their needs and requirements to improve Brand Development. Brand development is about creating exciting visions for our brands and developing plans keeping in mind full marketing mix. It contains brand communication, innovation and channel specific prepositions.

Sales Department This department work as the front force of the company to directly provide the products and services at the doorsteps of the retail customers. Our Sales department consists of an energetic sales force nationwide with extremely target oriented and energetic mind set-to achieve the business objectives.

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Production Department The production department creates products with breakthrough technologies to give consumers a pleasurable experience. We always strive for producing safe to eat products under hygienically controlled environment through state-of-the-art plant. Our ultimate goal is to provide people best food to cater to their needs, wants, desires and taste.

I.T Department Our IT department facilitates employees with more effective working and closer teamwork in pursuit of competitive advantage. IT analysis and development manages resources in order to plan and carry out different projects according to the internal requirements. IT provides quick solutions to meet the international business standards and requirements with an excellent team working on the continuous improvement of organization

Marketing Mix A marketing mix is a term that created by the American Marketing Association back in the 1950s to explain how marketers make important decisions regarding how they execute a successful marketing plan. ‘‘The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.’’ A marketing mix is associated with the four Ps: 1. Price 2. Product 3. Promotion 16 | P a g e

4. Place

1. Product: Refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good. The marketer needs to consider the life cycle of the product and any challenges that may arise when the product is in the hands of the consumer. For example, the earliest version of the iPod had a battery life problem that was only noticeable after a certain amount of time, and Apple needed to be able to combat that problem. Volka foods products have been in business for several years, which includes Jellies, Bubble Gum, Candies and Biscuit

Product line: Volka Foods product lines are:  Confectionary  Bakery

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CONFECTI ONARY

Giggly Jellies Bubble gums Bunties

BAKERY Cookania

Cookies Biscuits

Candies Chew beans Lolly pop Waffer

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Cookania Cookania is Volka’s bakery side, they divide it into three categories:

Cream/Sandwich biscuits

Dream Cream

Plain Biscuits

Cookies

Lemon Flavor Sandwich

Milkabisk

Tea Time

Cake Rusk

Chocorama

Chocolate Sandwich

Khaas

Choco chip

Layers

Gold

Khaas khatai

2. Price Refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

When setting a price, a marketer needs to consider the customer's perceived value of the product, and consider the fact that price can dramatically change the marketing strategy. A low price ensures that more customers will buy the product, but the price also needs to recover any costs to make the product and ensuring the profit margin and survival of the business.

Role of price Price is the amount a customer pays for a product .Only “p” which generates revenue for the firm. Price of cookania products is decided by VFI by considering a number of factors including market share, competition, material cost, product identity and customer perceived 19 | P a g e

value. They are selling their products with low profit margins. They are aiming to provide qualitative and innovative products with suitable price that will cover their fix and variable cost with some profit to their consumer having market penetration strategy in order to capture large market share in Pakistani market where they are at 4th number r. Minor fluctuation in the price can lead towards sales performance. a. Price discounts Marginal Retail price to final consumer is same all over the Pakistan but the type of discount is different to the distributor, wholesaler and retailer. According to the price policy of VFI, discount to distributor is 11% on their investment out of which distributor is bound to give 7% to wholesaler and 4-5% to the retailer. b. Schemes VFI has 1 ticky pack free scheme on SKUs of different products. Recently, 24+1 scheme on Pikanut and coupon scheme (i.e. wholesalers and retailers are given targets to be included in scheme) and the participants can win a tour to Dubai via lucky draw.

Pricing strategy of Cookania Cookania products all over Pakistan are available in: 

Rupees 5 (ticky pack)



Rupees 10 (mini snack pack)



Rupees 15 (snack pack)



Rupees 30 (family pack)

According to Philip Kotler, prices that end with 0 and 5 are also popular and are thought to be easier for consumers to process and retrieve from memory.

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Prices of products VFI is selling cookania products to wholesalers and retailers on credit basis and recovery is made in portions.

Product Name

Product Type

Flavor

Price (MRP)

Tea Time

Cookie

Vanilla and Lemon

5, 10, 15, 30

Pikanut

Cookie

Peanut

5, 10, 15, 30

Chocorama

Cookie

Chocolate

Chip 5, 10, 15, 30

Vanilla Khass Khatai

Cookie

Almonds

& 5, 10

Cardamom Cocodelite

Cookie

Real Coconut

5, 10, 15, 30

Choco Chip

Cookie

Chocolate Chips

5, 10, 15, 30

Cake Rusk

Cookie

-

5, 10, 20, 50

Raisano

Biscuit

Nuts & Raisin

5, 10, 15, 30

Gold

Biscuit

Milk & Butter

5, 10, 15, 30

Zeeraray

Biscuit

Zeera

5, 10, 15, 30

Dream Cream

Sandwich Biscuit

Chocolate Vanilla 5, 10 and

Strawberry

Vanilla Mini Me

One Bite Biscuit

Strawberry

5

Milkabisk

Biscuit

Milk

5, 10, 15, 30

Khaas

Biscuit

Milk & Wheat

5, 10, 15, 30

3. Place Refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'.

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Like it sounds, place means the actual distribution center, or where a product is sold to the customer. For Cookania, VFI is making primary and secondary sale on its own behalf via 1500 sole distributors with their own sales force team including SMs, SOs, ASMs, DSMs, merchandisers and order bookers. The distributor’s role is just to provide support to sales force by providing them vehicles on their distribution in their respective area of distribution. VFI is also exporting their products to Asian, Gulf and European countries including USA, Canada, Russia, Sweden, UK, Portugal, West Africa, South Africa, South Korea, Afghanistan, Turkey, Iraq, Lebanon, Jordon, Kuwait, Saudia, UAE, Yemen, Oman, Ethiopia, Somalia Uganda, Kenya, Burundi, Tanzania, Marutias, Australia and New Zealand.

Distribution Channel

Manufacturer

Distributor

Wholesaler and Retailers

Distribution Strategy Intensive Distribution strategy is adopted by VFI for cookania as it falls in FMCGs category Steps of Calls 1) PJP 2) Shopkeepers Engagement 3) Store and Stock Check 4) Sales Call 5) Finalize Call 6) Merchandizing 7) End and Evaluation

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Follow up of all tasks

Basic Capability Model SMs Evening meetings with SO's

SOs

Objective settings for next day working

Task

Tools

• Morning and Evening meetings • Stock Management • Coverage • Range Selling • Merchendizing

• Booking Sheets • Stock Register • Tracking Sheet of Effective Coverage • Brand Tracking Sheet • Pictures of all visited shop

KPIs for sales Staff 

SKU per bill should be 5



Minimum 75 to 80 shops visit daily



Minimum 60 productive shops in a day



Drop size should not be less than 700

4. Promotion This refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes. Promotion involves advertising, sales promotion, and public relations. TV commercials, Internet ads, print media and billboards (even ads features on the top of taxi cabs) fall under the umbrella of advertising. Public relations covers the distribution of press releases to the media while trade fairs fall in the sales promotion category. 23 | P a g e



Advertisements Advertisement by cookania is done in different ways like: billboard, visuals on

roadside, pamphlets & by creating catchy and memorable slogans “fun kop hula do, dubki teatime ki, hum sabka teatime etc. 

Electronic media Cookania is using electronic media very wisely and wide to promote its products. For

example, they have targeted the audience by purchasing some of exclusive rights on provisional & regional channels like waseeb TV, Khyber TV etc. their latest add of TEATIME is one of the expensive add made by volka foods international, it has been shooted in Europe and theme song is sung by Mikka Singh and they had introduced my themes in this add. 

Social media Cookania is actively taking part in social media promotion for its products through its

website, Facebook page and twitter account as well. 

Sponsorships Cookania is providing sponsorships to universities colleges and event organizers on a

very large scale. They were the 2nd biggest sponsor of Pakistan Super league after HBL, according to marketing manager of volka foods” we have spent Millions of Dollars on PSL.” 

Sales promotions Volka is very much involved in the marketing of its star product “TEATIME” by giving

sales promotion to the retailers and wholesalers in form of 24+1 , 120 ka 100 me and incentives to the star retailer or wholesaler. 

Free sampling In near future, volka is going to offer free sampling promotion strategy in order to

promote its star product “TEATIME” by placing its stalls in shopping malls, schools, colleges, roadsides, door to door visit and in universities as well. 

Public relation Volka has good public relation in context of its sales and marketing which is helping

volka to make it product available at every shop in the town possible and is one of the less expensive strategy of promotion. 

Celebrity endorsement Volka has tried to catch up the customer by the way of celebrity endorsement in its

advertisements. For example, Shahid Afridi and Darren Sammy in boom boom, Aizza khan in teatime, Hamza Ali Abbasi and Soha Ali in cake Rusk. 24 | P a g e

Corporate social responsibility of Volka food; Corporate social responsibility (CSR, also called corporate sustainability, sustainable business, corporate conscience, corporate citizenship, conscious capitalism, or responsible business) is a type of international private business self-regulation While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategythat time has passed as various international laws have been developed and various organizations have used their authority to push it beyond individual or even industry-wide initiatives. While it has been considered a form of corporate self-regulation At Volka, we believe in conducting our business with the strongest code of ethics, while also ensuring we play our part in contributing towards the welfare of our employees and the community as a whole. We are proud to be involved in the following initiatives. The targets cover the following areas: 

Flood victims accommodation and relief support.



Earth Quake victims’ accommodation and relief support.



Joint ventures with other companies in providing the food in shape of high energy Biscuit.



Regular meals to employees 3 times a day. (Breakfast, lunch & Dinner).



Dispensary with Doctor for the employee and their families (Health and Safety).



Regular donation on Monthly basis to orphans & widows in SOS village.



Regular Donations to different NGO'S.



Regular Donations for the local health-care programs.



Regular Donations of equipment to a local school system.



Donation / Road Making for the Proper Movement of Local Area People and their Vehicles, Near the Factory.

Market Environment Analysis 1. Portfolio Analysis The BCG matrix is one of the best method for a business portfolio analysis and can help Volka foods in implementing the right investment actions.

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According to Boston Consulting group Matrix Volka foods are as follows:

Star In BCG matrix, Volka foods place two of their products “Tea time biscuit and lolly pop (licks sour). These products have a comparatively high market share in growing industry. The market share is increasing for both. According to marketing manager of volka foods “we do see a lot of potential in

these two products, though our company and products are comparatively new in the market”. Cash Cow In BCG matrix, Volka foods Confectionary item “BOOM BOOM” Bubble gum is the cash cow for company. It has a large market share but without growth, and generates a fair amount of sale in the local market. Ding Dong bubble gum was at top in the market before Boom Boom bubble gum. Boom Boom bubble gum can milk the cow with strategic placement in the market.

STAR

 Tea Time

Question Mark

 Chocolate

 Lolly Pop

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Question Mark

Cash Cow

Dog

Volka foods introduced silk Chocolate, Chocolate does have low market share but the potential is quite high against the competitor “jubilee chocolate”. They have strong market share as compared to volka foods.

 Boom Boom

They are at growing stage of life cycle. The company is in decision process either to re-launch chocolate with some innovation, liquidate or promote to star. Volka foods still have a long way to succeed in chocolate Industry/Department

Dog Volka foods debuted jelly with low market share and low growth. Jelly has not gained its reputation in the market because of poor taste. The outlook is mostly dull and the target market did not accept the product. Revenue gained by jelly is questionable for volka.

Conclusion for BCG Matrix Star Strategy: Volka foods should consider investing more in Tea Time and Lolly pop for boosting the profits in future growth, and to earn more profit and market share.

Cash cow Strategy: Volka foods can use the profits to finance new growth and products in more industries like to buy competitors share or link with established brand.

Question mark Strategy: Volka foods should invest heavily on chocolate to push them to star status, and avoid becoming a dog.

2. SWOT Analysis in Volka food

SWOT analysis is an analytical tool used for the identification and categorization of internal and external factors. Strengths and weaknesses in SWOT analysis are termed as internal factors while opportunities and threats are termed as external factors. SWOT analysis can be conducted for a situation, an organization, a project, a new venture, a country, a nation and even individuals. SWOT analysis definition can help organizations in their strategic planning process, and in matching their capabilities and resources to the competitive environment in which it carries out its operations. 27 | P a g e

SWOT analysis is a dynamic part of an organization’s business and management development process. It entails the collection of information pertaining to external and internal factors which may have an impact on the organization’s evolution.

Strengths Strengths refer to the internal characteristics which may be deemed favorable for the organization. Our strength is our Trademark, Product and etc. Positioning Beyond Target Market 

A wide product line



Outstanding portfolio(plain biscuits, sandwich biscuits, cookies)



Value Pricing



Technological Advancement



Product Quality and strong Distribution Network



Easy Availability



Proper Utilization of Resources



Easily Affordable

Weaknesses Weaknesses refer to the internal characteristics which may be deemed unfavorable for the organization. Our weaknesses are our competitor. 

Lesser International exposer



Vague impression in customers mind



Lack of Trust



Loyalty

Opportunities Opportunities are external characteristics which the organization may use to its advantage. Our opportunity is use the update innovation 28 | P a g e

Upgraded Technology 

Add more flavor



New emerging Segments



Changing preferences of buyers



Varying consumption patterns of consumers



Enhancing distribution coverage

Threats Threats are external characteristics which may be potential sources of failure to the organization. Our threat is security reason big fall the product and etc. 

Sever competition from EMB in terms of packaging, branding and advertising



Availability of various foreign and local brands



Entrance of competitors

3. PESTEL ANALYSIS:Pestel analysis is a tool to understand the environment in which business operates, & the opportunities & threats that lie within it. By understanding the environment in which it operates, it can take advantage of the opportunities & minimizing the threats. Specifically PESTEL analysis is useful tool for understanding risks associated with markets growth or decline, & directing business to grow. Numerous factors determine and affect the environment of an Volka food which should be identified, understood and analyzed by the company so it can achieve optimum performance. If you want to know what PEST analysis is and how it can be used to gain an insight into the environment of your organization, you need to understand what these factors represent and how they are interdependent. P – Political factors

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E – Economic factors S – Socio-cultural factors T – Technological factors E – Environment factors L – Legal factors A PESTEL analysis is a measurement tool, looking at all the external factors of the organization. It is often used within a strategic SWOT analysis (strength, weaknesses, opportunities & threats analysis). PESTEL ANALYSIS ON VOLKA FOODS:POLITICAL FACTORSPolitical stability: Political stability is one of the important most factor which influence the growth of business directly. If Political stability is higher, then it leads to perfection in business & on the other hand if there is instability the business will have to suffer. Now the business of volka foods international is growing as the political scenario of Pakistan is stable. Taxation policy: Tax policy of government will affect the price of inputs & it ultimately affect the prices of final products & it will directly affect the sale of product. Current scenario has increased the prices of inputs because of govt. policies but still the overall impact has not yet increased the prices of final product. Government intervenes: This indicates that at what level the government intervenes in the economy. If the government intervene is more sometimes it helps the organization at large extent. Subsidies : The subsidies which are provided by government to different organization at different level also help it to grow at faster rate & helps the organization in reducing the finance which is to be funded from outside & it directly reduces interest amount paid in favour of fund raised from outside. Trading policies: This indicates the policies related to import & export of goods and services from different nations. If the policies are favorable more goods & services will be imported & exported, & on the other hand if policies are unfavorable it will restricts the import 30 | P a g e

& export. Favorable policies has helped the volka foods international to make its products available to international market. Hence making a positive change in country’s economy. Labor law: Labor law also affect the organization, for example- child labor, a child below 14 year of age cannot work. In factory or any hazardous place. Labor laws of Pakistan are being accomplished at volka. ECONOMIC FACTORS Interest rates: Interest rate directly affect the cost of capital, if the interest rate is higher the cost of capital will increase & if it is lower than cost of capital will be lower. This directly affect the profit of the organization &its growth. Interest rates in recent past have increased the cost of capital. Tax charges: If the tax charged by the government is lower then it will reduce the product price & if it is higher than it will increase the prices of the products. Volka foods international comply with the tax regulations as govt. is encouraging tax payers for payment of tax so it has brought positive change in organization. Overall tax charges on organization have not changed. Exchange rates: This shows that what is the exchange rate or foreign currency rate. If exchange rate is higher more amount is paid on import of goods & if it lowers less amount is to be paid & on the other hand if it is higher the amount received will be more & if it is lower the amount received will be low. Exchange rate in recent times has increased so the prices of imported ingredients have increased increasing the overall prices of inputs. National income: National income is important factor as if affect the growth of the organization. If per capita income is more the amount spend will be more & if it will be lower the amount spent will be less. Unfortunately, the per capita income of Pakistan is not that much as it should have been so the overall spending pattern is low. Keeping in mind the economic factors volka foods is trying to make products according to peoples spending pattern. Economic growth: Economic growth is important factor in the development of the organization. If economy grows at a higher speed it will directly affect the growth of the organization. Currently the economy of Pakistan is not at peak but still because of CPEC and other investments there are speculations that the overall economy of the country will be better hence helping the businesses to grow.

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Inflation rate: Inflation means the rise in the value of all the product in the economy, if inflation rate is higher the cost of products will be higher & if inflation rate is lower the cost of product will be lower. This directly affect the growth of the organization. Growth of organization have been affected because of inflation rate in the last some months. It has affected the overall purchasing pattern of people hence affecting the organization as well. SOCIO – CULTURAL FACTORS Demographics: Demographics is the study of human population in the economy. It helps the organization to divide the markets in different segments to target a large of customers. For Example- according to race, age, gender, family, religion, & sex. The demographics show that most of the population of Pakistan is young. Distribution of income: This shows that how income is distributed in the economy. It directly affect the purchasing power of the buyers. And ultimately leads to increase or decrease in the consumption level of the products. Income distribution in Pakistan is uneven that’s why the purchasing power differ among individuals. Consumerism: This indicates that a large number of options are available while purchasing of goods to consumers, so the choice becomes easy & quality products can be choose by consumers. So while purchasing a consumer have different choices to select product according to his needs. As far as the products of volka are concerned, a lot of options are available to consumers for confectionary or bakery items, hence making it easy for customers to choose the best among them. Education levels: Education is one of the most important factor which influence the buying power of consumer, while selecting a particular good a consumer should know all it’s features so it can differentiate them with another products. Law affect social behavior: Different laws are made by the government to safe guard the rights of consumers. For example- Consumer protection act, this law indicates that a consumer can file a case against a seller if he finds that he is cheated. Consumer protection courts are working in Pakistan helping the consumers as well as the organization to address the concerns of consumers. TECHNOLOGICAL FACTORS

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Advancement in technology: New technology helps in economizing the scale of production, this means that new technology helps in increasing the level of production, & reducing the costs of inputs, & maximizing the level of profits. volka is trying to use technology to make better products and to make its products available to everyone. Discoveries &innovation: Advancement in technology will leads to discoveries & innovations & further improvements in technology so as to improve perfections in the production process. Competitive forces: Advancement in technology will also leads to competition in the markets, more quality products will be provided to consumers to cover a large number of market. Automation: Change in technology will leads to automation, this means that with new technology labor required is less as machines are automatic. All the works are done automatically by the machines as earlier it is labor oriented. Now all the work is machine oriented. Research &development: This department plays a vital role in the development of the organization. As this department always do research that what are the demand of the markets & how to make advancements so the organization can survive in the competitive world. ENVIRONMENTAL FACTORS Ecological: The ecological and environment aspects such as weather, climate, & climate changes, which may especially affect industry such as tourism, farming, & insurance. But the overall impact of ecological factors is low because of its location and better storage systems. Environmental issues: Global warming is one of the major issue now-a-days as external factor is becoming a significant issue for firms to consider. Many remedies have been taken to reduce Global warming. Volka foods have been playing its role by producing trees and plants to reduce global warming. Environmental regulations: Various regulations have been declared by government to safe guard the environment. For example- no company should through its waste in rivers and volka comply with those regulations.

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LEGAL FACTORS Employment law: Employment law provides equal opportunities to every citizen to work & earn his livelihood. It provides equal opportunities to every citizen. Employment and labours laws are observed at volka. Consumer protection: This law helps to protect the rights of consumers & he can file a case against seller if he fined that he is cheated. Industry-specific regulations: These laws are related to industry for example- no industry can establish in between cities i.e. it should be outside the cities. And the location of volka says it that it follows industry specific regulations.

4. Competitor Analysis Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Profiling combines all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. Competitor analysis is an essential component of corporate strategy. It is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called "informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager continually receives." As a result, traditional environmental scanning places many firms at risk of dangerous competitive blindspots due to a lack of robust competitor analysis. Competitor of cookania (Tea Time) is Sooper. Sooper was launched in 1996. Sooper is a market leader having highest market share. Sooper is having Competitive prices and customized packaging, Targeting General public in all over the Pakistan. Cookania make analysis of sooper and its tea time product by its strategies, targeting and visiting stores etc. Same like Giggly (Boom Boom) is competitor of Hilal Foods (Ding Dong).Ding Dong is the market leader of bubble gum market having competitive prices and customized advertisement related to the boom boom and both have same target market. But they have used different marketing strategy to address the audience. The effectiveness of the message in the

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advertisement depends on how well it has delivered the concerns of customers. Hence the competition between them is of healthy nature.

5. Porters Five Forces

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. Frequently used to identify an industry's structure to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness. The model is named after Michael E. Porter.

Threat of New Entrants/Potential Competitors:

A company's power is also affected by the force of new entrants into its market. The less time and money it costs for a competitor to enter a company's market and be an effective competitor, the more a company's position may be significantly weakened. An industry with strong barriers to entry is an attractive feature for companies that would prefer to operate in a space with fewer competitors.

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

Entry barriers are relatively low for the industry: there is no consumer switching cost and zero capital requirement. There is an increasing amount of new brands appearing in the market with similar prices than volka products



Volka is seen not only as a food but also as a brand. It has held a very significant market share and loyal customers are not very likely to try a new brand.

Threat of Substitute Products: Competitor substitutes that can be used in place of a company's products or services pose a threat. For example, if customers rely on a company to provide a tool or service that can be substituted with another tool or service or by performing the task manually, and if this substitution is fairly easy and of low cost, a company's power can be weakened. There are many kinds of Biscuits, cookies products in the market. Cookania does really have an entirely unique flavor. People can tell the difference between cookania and others. The Bargaining Power of Buyers:

This specifically deals with the ability customers have to drive prices down. It is affected by how many buyers or customers a company has, how significant each customer is, and how much it would cost a customer to switch from one company to another. The smaller and more powerful a client base, the more power it holds. 

The individual buyer no pressure on its product



Large retailers, have bargaining power because of the large order quantity, but the bargaining power is lessened because of the end consumer brand loyalty.

The Bargaining Power of Suppliers: This force addresses how easily suppliers can drive up the price of goods and services. It is affected by the number of suppliers of key aspects of a good or service, how unique these aspects are, and how much it would cost a company to switch from one supplier to another. The fewer the number of suppliers, and the more a company depends upon a supplier, the more power a supplier holds. 

The main ingredients for Cookania include carbonated wheat, salt, sugar, etc. The suppliers are not concentrated or differentiated. 36 | P a g e

Rivalry among Existing Firms: The importance of this force is the number of competitors and their ability to threaten a company. The larger the number of competitors, along with the number of equivalent products and services they offer, the lesser the power of a company. Suppliers and buyers seek out a company's competition if they are unable to receive a suitable deal. When competitive rivalry is low, a company has greater power to do what it wants to do to achieve higher sales and profits. 

Currently, the main competitor is Sooper which also has a wide range of food products under its brand. Both cookania and Sooper are the predominant healthy food and committed heavily to sponsoring outdoor events and activities.



There are other biscuits brands in the market that become popular, like Oreo, Zera plus because of their unique flavors. These other brands have failed to reach the success that Sooper or cookania have enjoyed.

Market Segmentation Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. Market segmentation reduces the risk of an unsuccessful or ineffective marketing campaign. When marketers divide a market based on key characteristics and personalize their strategies based on that information, there is a much higher chance of success than if they were to create a generic campaign and try to implement it across all segments. Marketers can also us segmentation to prioritize their target audiences. If segmentation shows that some consumers would be more likely to buy a product than others, marketers can better allocate their attention and resources. Today, marketers are trying to identify markets they can serve best, as one company cannot cope with the needs of the whole market with one product. 37 | P a g e

Cookania has segmented the market on the basis of: a. Main Segment: Quality Conscious Children and adults b. Geographic: Region: All over Pakistan Density: Urban, Sub-Urban, and Rural. c. Demographic: Total population of Pakistan (General Public). Age: 5-12, 12-30, if extended then 12-50. Gender: Male and Female (Both) d. Behavioral: Benefits: Quality, service speed, convenience, economy. User-status: Regular users Usage rate: Heavy users Readiness to buy: When informed, interested, intended to buy. Attribute toward product: Positive Loyalty Status: Medium as well as strong. e. Psychographic: Social Class: All classes (Upper uppers, Upper lowers, Working class, Middle class, Upper middle, lower uppers, and Lower lowers).

Market Targeting: 38 | P a g e

A target market is a group of consumers or organizations most likely to buy a company’s products or services. Because those buyers are likely to want or need a company’s offerings, it makes the most sense for the company to focus its marketing efforts on reaching them. Marketing to these buyers is the most effective and efficient approach. The alternative marketing to everyone - is inefficient and expensive. In Market Targeting, it decides which market segments to enter in, while doing that, it must look at three factors: 1. Segment size and growth 2. Segment structural attractiveness 3. Company’s Objectives.

After evaluating the three factors, the firm selects the segments to cater. Cookania has targeted its segment on the basis of: 

Age5-12(Cream/Sandwich biscuits)

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Age 12-30(Plain Biscuits & Cookies), if extended then it will be 15-50 years.

Social Class: They have targeted all the social classes.

Recommendations: 

It must have to focus on the needs of children

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It has to introduce the peanuts in Khaaskhatai.

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It should have to change the thinking of the people in plain biscuits 39 | P a g e

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The new ingredients must be added like as, vitamins, flavored creams.

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It should have to target on the basis of mass markets.

Volka Food Strategy

Volka Food International is a new mega-addition to S.M Group of Industries, an organization that has been operating successfully in the field of confectionery and bakery products for the past 20 years. The foundations of our business are based on ethical and moral principles that have helped us tremendously in molding our dreams into reality, and in earning respect of the industry. Our aim is to meet our strategic targets that will help us become a leader in the bakery and confectionery market, and ensure that every consumer is fully satisfied with our products. We are proud to have multitalented, skilled professionals on our team. Highly talented in all areas, this expert manpower has been the guiding force behind our safe and high standards of production. We believe in our employees and honor the devotion and sincerity they show towards the company. We know that with the support of our team we will expand into new ventures that will lead to progress and prosperity of not only the organization, but of the country as well. Our strategic points are defined as given below. 

Review the vision, mission, charter, purpose, values, and historical evolution for the organizational context.

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Identify the internal and external customers, vendors, competitors, and the trends affecting the operation of the organizational context.

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Speak with the highest level of people within the organizational context to obtain their perspectives, opinions, values, and needs.

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Market Success Story Based on the legacy of excellence in confectionary, bakery and pasta, Volka Food International is delivering healthy and appetizing food products globally. Our dedication to succeed compels us to understand the taste preference of our customers and select the finest recipes and ingredients to create the magic of our mouth-watering food products. Produced on world’s best and modern technological facilities, our products are so rich in taste and quality that it wins hearts and minds around the whole world. We believe good teamwork comes from effective communication practices and is a reflection of high morale and engaged employees. We show pride in our brands and promote an optimistic environment for our team. We are driven to raise the bar on quality at every stage of production, not only for ourselves but the food industry at large. We are committed to serve the communities and cultures we operate in by introducing the latest technology and ecofriendly policies to build a safer and greener tomorrow. We have enabled Volka Food International to incorporate social and environmental value, into the core strategy and operations. This had improved our management of business risks and opportunities whilst enhancing long-term social and environmental sustainability. The essential plan to incorporate the sustainability aspect into business management should be grounded in the ethical belief of give and take to maintain a successful company in the longterm

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Evaluation The basic evaluation of Volka food is defined as given below.

Short analysis in terms of working environment

Volka Food International offers exciting and challenging opportunities for qualified and exceptional crew members to further their food-service careers with excellent benefits and exceptional advancement. We care about our employees and provide them with a relaxed and enriching working environment. We believe in hiring people who have talent, skills, creativity, innovation, ambition, enthusiasm and positive thinking for continuous growth.

Recommendation of Volka food  To reach the peak of achievement the company would have to stress on the growth of the product Volka should also look like into other countries Asia pacific in order to market its product globally. Another strategic plan would be a joint venture.  The shopkeeper complain that the Volka don’t provide replacement to the expired product so that they should provide proper replacement to the shopkeeper to enhance the image of the company.

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References: Mr. Ishfaq (Business development Manager) VOLKA FOOD INTENATIONAL. 03017590773 https://www.volkafood.com/ https://www.vbook.pub.com/document/326102470/Volka-food https://www.linkedin.com/company/volka-food-international/

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