FINAL REPORT

PRINCIPLES OF MARKETING

DAWN BREAD

GROUP MEMBERS:SAFURA ALI (7626)AALIYA KHATOON (8158)MEHSUM MANSOOR (9321) AHMER HAMMADANAM FAKHAR UD DIN (9014)QURAT UL AIN PARACHA (9210)

SUBMITTED TO:

MS. MALIHA MURTAZA KHAN

DATE: 13TH May, 2009

1

TABLE OF CONTENT

INTRODUCTION (PLAGIARIZED) 4

DAWN’S PROFILE 4

SWOT ANALYSIS 7

STRENGTHS: 7WEAKNESSES: 7OPPURTUNITIES: 7THREATS: 8

MARKET SEGMENTATION 9

GEOGRAPHIC 9DEMOGRAPHIC 9PSYCHOGRAPHIC 10BEHAVIORAL 10

MARKETING MIX FOR DAWN FORTIFIED BREAD 13

PRODUCT 13

VARIETY: 13BREADS 14BUNS 14SWEETS 14FROZEN 14OTHERS 14QUALITY: 15DESIGN: 15FEATURES: 15BRAND NAME: 16PACKAGING: 17SERVICES: 17SIZE: 18THE COMPANY’S CURRENT BUSINESS PORTFOLIO 18BCG MATRIX 18ANSOFF’S PRODUCT/MARKET EXPANSION GRID: 20PRODUCT LIFE CYCLE: 21LEVELS OF PRODUCT: 22

2

PRICE 24

PLACE 25

PROMOTION 28

COMPETITORS ANALYSIS:- 30

FLAWS IN MARKET MIX 31

PRODUCT 31PROMOTION 32

RECOMMENDATIONS 32

3

INTRODUCTION (PLAGIARIZED)

Dawn Bread with a vision to exceed the expectations of consumers with great taste products that

delivers convenience, quality, safety and value – is undoubtedly the market leader in fresh baked

bakery products. Dawn Bread has created the distinctive competence in a market where so many

other brands are also available to cater the requirements of consumers. It has introduced the concept

of quality in the generic fresh bakery products industry.

DAWN’S PROFILE

Dawn Bread a name that has come to signify quality and freshness is a product of Golden Harvest

Food (PVT) LTD. A success story that was written by a family that is committed to honest to

goodness enterprise and concerned with the prosperity of the country. The enterprise, which made a

humble beginning in late 1981, has, within a decade, grown to capture 35% of the consolidated

market share of all bread products in the country, a fact that speaks volumes about the credibility of

the company and its 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.

Beginning with the plant in Karachi, commissioned in October 1981, Dawn Bread built-up a

reputation for freshness, quality and taste. Creating awareness plus a demand for bread products, the

second plant was commissioned in Islamabad in January 1985. Nothing succeeds like success, so

next came the plant in Hyderabad in January 1987, a year that was to also witness the establishment

of another plant at Lahore, in November 1987. In 1989 we established the plant at Multan. After

4

consolidating this expansion, the sixth plant was commissioned at Faisalabad in February 1992. Now

our customers can find Dawn’s quality and freshness from the southern tip of Pakistan to the

Northern city of Peshawar.

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. 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.)

!!!!PLAGIARIZM ENDS!!!!

The DAWN Bread is very famous in Pakistan and it is the market leader in Pakistan for bakery

products. It has launched many schemes with McDonalds and KFC. DAWN bread provides bun for

the burgers to McDonalds, KFC, and MouriPan. Now DAWN Bread has spread to Lahore, Sukhur,

Multan and Islamabad. It has two production units in Lahore and one production unit also in Dubai,

from the above production units dawn bread covers, wide area of the Pakistan. Dawn Bread has

lunched many products with McDonalds and KFC. There used to be a coupon in the bread if you

take it to the McDonalds they used to give a burger free. There were many other schemes with the

McDonalds that DAWN Bread has launched with them. As DAWN Breads supplies buns for burger

5

to the McDonalds. McDonald has prepared a special recipe for buns. They have asked them to

prepare the buns of the provided recipe.

According to Brands Awards survey, results indicate that in its category Dawn Bread was ranked

highest on the attribute of Quality whereas Familiarity was confirmed to be second most appreciated

feature. One can notice so many other brands with high claims in the same market but because of its

perceived nutritive quality image it is the most acceptable brand in bread business. Bread is every

household requirement with some what inelastic demand therefore; Affordability was not a matter of

concern felt by the surveyors Availability needs improvement according to the results.

6

SWOT ANALYSIS

STRENGTHS:

Dawn Bread is among the leading brands in Bread Industry due to their quality and wide

range of products

It is the market leader holding about 35% of market share, catering to more than 10000 retail

outlets across Pakistan

According to the Brands Awards survey it is one of the most recognize product in Bread

Industry

WEAKNESSES:

Although it has the biggest distribution unit for any product in Pakistan, but it still ranked

low in the Brands Award survey.

They should try to make their product more affordable so as to cater to the masses and the

reach the lower class markets

OPPURTUNITIES:

They should try to open more distribution channels to increase their availability in the market

There is a growing demand of new bakery products and Dawn Bread should look forward to

capture those opportunities to lessen the competition and maintain their spot as the market

leaders in the Industry

They have a huge foreign market as more and more Pakistanis are moving towards the

different parts of the and their products can give them a taste of home awy from home

7

THREATS:

One of the threats to Dawn Bread is the increasing prices of flour their primary raw material

which has greatly hampered the affordability of their product

With growing number of people entering this business, the competition in the industry is

getting tougher and Dawn Bread should look to increase their availability and quality in order

to retain the top spot in the Industry

8

Market Segmentation

Geographic

Country Pakistan.

Country Region Karachi, Hyderabad, Multan, Lahore, Islamabad & Rawalpindi.

City or metro size 1,000,000-4,000,000; 4,000,000+

Density Urban, suburban.

Climate Southern.

Demographic

Age 6-11, 12-19, 20-34, 35-49, 50-64, 65+

Gender Male, Female.

Family-size 1-2, 3-4, 5+

Family life-cycle Young, single; young, married, no children; married with

children; older, married with children; older, married,

under18; other.

Income 15000+

Occupation Professionals; managers, officials and proprietors; students;

home-makers.

Religion Any.

Race Asian.

Nationality Pakistani.

9

Psychographic

Social class Middle class, upper middles, lower uppers, upper

uppers.

Life-style Achievers, strivers.

Personality Gregarious, ambitious, fast-pacers.

Behavioral

Occasions Regular occasion.

Benefits Quality, service, convenience, availability.

User-status Regular user.

User -rates Medium user, heavy user

Loyalty Status Strong

Readiness Stage Informed, interested, desirous, intending to

buy.

Attitude towards product Enthusiastic, positive.

Dawn bread segments its market psychographic ally,

10

Social class: Dawn Bread targets consumers from the middle class, upper middle, lower

upper and upper uppers, which starts from people having a pay-scale of 15,000+, since a

medium size dawn bread cost Rs.30, which roughly estimates to Rs.900 a month. Another

reason of de-segmenting working class is that they don’t consider bread as an adequate

breakfast course in comparison to ‘Roti’.

Lifestyle: Achievers and strivers; people with high resources and having a reputable and

stable social position in their lives. Strivers refer to people who are still striving for both ends

to meet i.e. middle class.

Personality: Gregarious, ambitious; people fond of social company, aim-oriented, fast -

pacers, who don’t have much time to do proper breakfasts( bread is a handy meal) and

adaptors, who adapt the day-to-day trends .

And Behaviorally as,

Occasions: Regular; for daily consumption.

Benefits: Quality remains always the symbol of dawn-items, be it fresh and hot dawn bread

or crispy rusks. Service is another benefit, at the back of pack it has got an access number to

talk to dawn customer representatives. Convenience in terms of ready to eat meal and an

easy-opening pack. Dawn bread is the most available bread, regardless the law and order

situations in the city or any other reason, which makes the brand highly available.

User-status: Dawn bread targets regular users. Who daily consume the bread, for which its

ideal target market is a family of 2-3 children and parents, i.e. 5 family members. A small

family might buy the bread once in 3 days.

11

User-rates: medium users refer to people consuming dawn once in a day, mostly at mornings,

while heavy users are people who are consuming it for more than one time a day, for e.g. a

kid having a slice at breakfast and taking dawn bread sandwich for recess.

Loyalty Status: strong; Dawn bread have got a strong brand loyalty, people go and ask Dawn

bread to the retailer. But the status can’t be rated as absolute since people might take any

other brand if dawn is not available, because of the nature of item as frequently consumed

edible.

Readiness stage: People are using any other brand or any other substitute of bread, and are

dissatisfied from it, come under the segment of informed and interested, while people who

are desirous and intending to buy are those who count for most of the revenue generation.

Attitude towards Product: Dawn bread is serving its customers for more than 2 decades, and

is known for its reliable quality and availability, and regarded as a pioneer in its line,

therefore people have got an enthusiastic attitude towards the product. And the brand has

become their preference.

12

MARKETING MIX FOR DAWN FORTIFIED BREAD

PRODUCT

VARIETY:

They are operating a number of bread and bun products. They categorize their products in the

following manner:

PLACEChannelsCoverage

AssortmentsLocationsInventory

TransportationLogistics

PROMOTION

AdvertisingPersonal SellingSales PromotionPublic Relations

PRICEList PriceDiscountsAllowancePayment Periods

Credit Terms

PRODUCTVarietyQualityDesign

FeaturesBrand NamePackagingServices

Target Customers

Intended Positioning

13

BREADS

Multi grains

Bran bread

Milky bread

Plain white bread

Fortified breads

BUNS

Hot dog buns

Fruity buns

Burger buns

SWEETS

Strawberry and vanilla cakes

Short cake

Pineapple cake

Mango cake

Cup cakes

FROZEN

Dawn frozen paratha

OTHERS

Dawn Rusk

14

QUALITY:

Dawn bread is manufactured under strict environmental and hygiene conditions. All their plants are

regularly sterilized and washed. Their quality standards are ISO-9000 certified. Staff is forced to

remain neat and clean. The ingredients used are of extreme high quality. They have 8 food

technologists which keep a check on the quality of ingredients and make sure that quality standards

are met.

DESIGN:

The design of dawn bread is squared shape slices of dawn bread loaf.

FEATURES:

The major feature and area of concern is freshness and taste of dawn bread. Freshly baked and

wholesome, this bread contributes to the recommended daily intake of essential nutrients that form a

major component of a healthy and balanced diet. Made from the finest ingredients.

15

INGREDIENTS  

Flour, Sugar, Salt,

Vegetable, Oil, Bread

Emulsifiers, Yeast,

Vitamins and

Preservatives.

BRAND NAME:

The brand name is

PACKAGING:

Dawn fortified bread is packed in a orange color packing. They have a rising sun printed on their

pack which represents dawn-early morning.

16

SERVICES:

They have their contact numbers printed on their packaging for customer’s feedback and any further

complaints.

SIZE:

Dawn fortified bread is available in 3 different sizes.

Small, medium, large

THE COMPANY’S CURRENT BUSINESS PORTFOLIO

BCG MATRIX

Market Share

High Low

High

Market growth

Low

17

STARQUESTION MARK

DOG

DAWN FORTIFIED BREAD

Cash Cow

DAWN FORTIFIED BREAD AS CASH COW:

Dawn bread marks its fortified bread as cash cow in BCG MATRIX.

They have 35 competitors in bread market and currently in spite of 35 competitors in market their

market share is 35%. They have a huge share in bread industry. If we take the example of Pepsi in

beverage industry, they have a huge market share but if we ask the general public what is your

favorite drink 50% would have said Pepsi but other 50% have some other choices as their drinks.

But in case of Dawn bread major population would just say Dawn bread.

As far has market growth rate is concerned, bread industry does not have a high growth rate. And

even if there is some growth so it is not that investment oriented.

ANSOFF’S PRODUCT/MARKET EXPANSION GRID:

EXPLAINATION:

They see their dawn fortified bread as the product development strategy because they haven’t

changed their market segmentation before launching dawn fortified bread. They changed their

product to fortified bread.

18

PRODUCT LIFE CYCLE:

Right now dawn bread is facing its maturity stage where they have a huge amount of sales and

profits. It’s almost about 3 decades from which dawn bread is advertising, selling and promoting

their product. When we think of dawn bread, quality, freshness and availability comes in our mind. It

has positioned so well the product in the minds of the customer that people demand dawn bread from

retailers. Now they don’t need to push their product to the customer, the demand and sales are

already very high.

LEVELS OF PRODUCT:

19

CORE BENEFIT:

The core benefit of dawn fortified bread is that it’s an edible. It is used for eating purpose. It serves

the purpose of an eating item in breakfast or as a snack in evening.

ACTUAL PRODUCT:

Actual product includes its quality standards, design, features, brand name, and packaging. These are

already explained in the beginning of product mix.

AUGMENTED PRODUCT:

Following information make the product augmented:

“We appreciate your feedback. For comments or queries, please contact:

Golden Harvest Foods (pvt) ltd.

33, sector 24, korangi

Industrial area, Karachi

UAN: 111-111-999

Email: info@dawnbread.com

Website: www.dawnbread.com

A unit of

Dawn group of companies

20

Price

Before we evaluate the price of fortified dawn bread, we will have to understand what is price.

Price is the amount of money charged for a product or service or the sum of the values that

consumers exchange for the benefits of having or using the product or service.

An effective price requires covering up the cost of the product and giving substantial profits to the

producer. Besides these things, it plays an important role in creating value for the customers, as it is

one of the major elements of the marketing mix.

Among several general pricing approaches, Dawn Fortified bread has not relied on cost-based and

competition-based pricing approaches instead it has set its price according to the value-based

pricing; this is when the prices are set according to the buyers’ perceptions of value rather than on

the seller’s cost.

The consumer price of medium size dawn bread is Rs.28, whereas the consumer price of the large

dawn bread is Rs.50. Dawn Bread does come in small size, which is for Rs.10 but it is only

distributed and sold in limited geographical areas, where there is demand for a small size.

The prices which dawn bread is charging are same or higher then the prices of the competitors but

not lower than them because dawn bread has the highest market share of 35% as compared to bake

parlor, wonder bread or harry’s. Dawn bread is also sold at value-based pricing because of the brand

name and market positioning that it has achieved over the years in the bakery items market.

Consumers are ready to pay high prices for the brand name and quality of dawn bread.

21

Since dawn bread is not a new product in the market, it does not rely on market skimming and

market penetration pricing strategies. Dawn bread uses product line pricing, which is one of the

product mix pricing strategies. In product line pricing strategy, dawn bread sets the price steps

between various product lines based on cost differences between the products, customer evaluation

of different features, and competitors pricing.

Different products in the product line of dawn bread including milk bread, brown bread and fortified

bread.

In short, Dawn bread is the pioneer leading competitor who can easily afford to charge value-based

pricing as its loyal customers will by dawn bread in any case.

Place

Place is the third most important element of the marketing mix. Dawn bread has put extensive efforts

in making the decisions regarding the channel, distribution, location, inventory, transportation and

logistics of their product.

Channel is a layer of intermediaries that perform some work in bringing the product and its

ownership closer to the final buyer. Dawn bread has used the channel from the producer to the

retailer and then to the final consumer, that is, dawn bread being the consumer sells the product to

the retailers who in return sell the product to the final buyer.

22

When it comes to distribution, dawn bread has focused its placing efforts in intensive distribution,

which involves setting the product in as many outlets as possible. Dawn has made sure that its bread

it easily available at all retail shops, supermarkets, grocery stores, milk shops etc. They have adopted

intensive distribution because bread is convenience product that is bought frequently and used in

daily routine in break fast and for other purposes. Therefore, it is essential for dawn bread to supply

fresh bread to all its retail outlets on a daily basis so that consumers are not disappointed and to stop

consumers from buying any other bread brand incase dawn bread is not available.

In inventory management, dawn bread does not have to face problems of managing too much or

too little stock. Since, bread is a product that is perishable so it has to be produced and supplied fresh

on a daily routine. It puts an end to the question of keeping stock because stocking bread would

make it stale and the quality will fall as well as the reputation and brand name of dawn bread.

Then, comes the transportation decision, which is also of extreme importance as it affects the

pricing of products, delivery performance, and condition of the goods when they arrive at the

destination. These factors have to be dealt with very carefully because they can seriously affect the

customer satisfaction of dawn bread and dawn bread cannot afford to lose its market share at the

hands of other competitors. Therefore, dawn makes sure that all of bakery items, that is, dawn

fortified bread, dawn frozen parathas, dawn nans, dawn cupcakes, dawn rusks and dawn milk bread

all are supplied to the retailers in trucks and carriers that have cooling and refrigeration systems

which protect the perishable quality of dawn products.

23

Promotion

Promotion mix is the specific mix of advertising, personal selling, direct marketing, public relations

and sales promotion.

For advertising, dawn bread uses remainder advertisements in order to remind its consumers about

its existence that it is still available in the market. Persuasive and informative advertising would not

be appropriate for dawn bread.

The message execution style that dawn bread uses usually uses is lifestyle because in its

advertisement it shows how dawn bread fits in the breakfast and family lifestyle as the advert shows

breakfast lifestyle of a happy family.

The advertising appeal on which dawn bread focuses its efforts is emotional appeal because dawn

bread tries to attract its consumers by emotionally creating a bond with them. Dawn bread does

advertising on the personal level as they have racks and stands in all their retail outlets.

Dawn bread does not advertise itself on a very extensive scale like its competitors like bake parlor

but even then, it has been successful in taking over the highest market share of 35%. This is because

dawn bread, the brand name it self has gained so much awareness that it is the first preference of the

consumers.

But however, Dawn bread has already positioned itself in the minds of the consumers in such a way,

that whenever the word bread comes to our mind, we immediately think of dawn bread. This product

24

awareness and positioning has also been created in the minds of the consumers because dawn bread

is there in the market from a very long time.

In their promotion mix, dawn bread has not used personal selling and direct marketing promotional

strategies. However, they have focused on the sales promotion largely. They have focused on sales

promotion in the form of coupons and premiums, which are the goods, offered either free or at a low

cost as an incentive to buy a product. For example, recently there was an offer by dawn bread, in

which it offered free blue band margarine through coupons. By collecting a certain number of

coupons, we could take them to the retailers of dawn bread and get a free blue band margarine in

return.

Competitors Analysis:-

The major competitors of DAWN bread in the market are

Bake Parlour

Wonder Bread

Un-branded (Local Bakery Breads)

Others ( Prime, Vita, Harry, etc)

The largest share in the market is of DAWN bread. The second largest is won by Bake Parlour.

Wonder bread and the local bakery breads have almost the name share where as the other breads

have very low shares.

25

DAWN Bread = 40%

Bake Parlour = 34%

Wonder Bread = 15%

Un-branded = 9%

Others = 2%

Flaws in Market Mix

Product

Packaging

The packaging of DAWN bread needs to be changed according to many

consumers. It needs to be changed because for the past many years it’s been the same and

now it should be changed for some change.

26

Promotion

Advertising

The Advertising campaign for DAWN Bread should be done in order for new

customers to know about DAWN Bread. At the present moment there are no visible advertisements

for DAWN Bread.

RECOMMENDATIONS

• Encourage new customers.

• Advertisements should be made a regular part of marketing strategies. They can do

advertisements by sponsoring any cooking show, posters of dawn bread on vehicles,

television advertisements.

27