Super

MARKETING RESEARCH

Frankies Chips

(Tripple-em)

Final Research Document

PRESENTED TO:

Ms Ayesha Raza

PRESENTED BY:

Ahmed Hassan Zaka

Asad Azeem Khan

Hassan Ali

Fatima Khudayar

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Seemal Zubair

Usman Akhter Awan

Table of Contents1. Company Overview.................................................................................................................................4

2. Super Crisp : A Success Story...................................................................................................................5

3. Pakistan & Snacks Industry......................................................................................................................6

3.1. Public Sector in Food Industry..........................................................................................................7

3.2. Local Competition Analysis...............................................................................................................7

4. Market Analysis.......................................................................................................................................9

5. Frankies Introduction.............................................................................................................................10

6. Market Segmentation............................................................................................................................10

6.1. Consumer Segment........................................................................................................................11

7. Target Marketing...................................................................................................................................12

8. Opportunity Analysis.............................................................................................................................13

9. Information Needs.................................................................................................................................14

10. Research Proposal...............................................................................................................................16

10.1. Purpose of the Proposed Research Project...................................................................................16

10.1.1. Problem Statement................................................................................................................16

10.1.2. Research Objectives...............................................................................................................16

10.1.3. Hypothesis.............................................................................................................................16

10.2. Type of Study................................................................................................................................17

10.2.1. Exploratory Research.............................................................................................................17

10.2.2. Descriptive Research..............................................................................................................19

10.3. Definition of Target Population....................................................................................................20

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10.4. Data Collection Method................................................................................................................21

10.4.1. Sampling Method..................................................................................................................21

10.4.2. Sample Size............................................................................................................................22

10.5. Specific Research Instruments......................................................................................................22

10.6. Potential Managerial Benefits of the Propose Study....................................................................23

10.7. Proposed Cost Structure of the Total Project...............................................................................23

11. Exploratory Research Implementation................................................................................................25

11.1. Experience Survey.........................................................................................................................25

11.1.1. Experience Survey of Assistant Brand Manager.....................................................................25

11.1.2. Experience Survey of Retailers...............................................................................................27

11.1.3. Findings from the Experience Surveys...................................................................................37

11.2. Focus group..................................................................................................................................38

11.2.1. Findings From the Focus Group.............................................................................................38

12. Questionnaire Design..........................................................................................................................40

12.1. Consumer Questionnaire..............................................................................................................40

12.2. Retailer Questionnaire..................................................................................................................43

12.3. Distributor Questionnaire.............................................................................................................46

13. Sampling Plan......................................................................................................................................48

13.1. Target Population.........................................................................................................................48

13.2. Data Collection Method................................................................................................................49

13.3. Sampling Frames...........................................................................................................................49

13.4. Sampling Method.........................................................................................................................49

13.5. Sample Size...................................................................................................................................49

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1. Company Overview

The firm we have chosen for the marketing research is Tripple Em. Tripple Em (Pvt.) Limited,

the pioneer company in manufacturing of premium quality crisps and snacks in Pakistan, was

established in 1982. Their instant success Super Crisp produced for the first time in Pakistan on

the most modern American technology was launched in 1986. Ever since its launch, the Super

Crisp has established new sales records and over wheeling consumer acceptance. Being the flag

carrier of a truly international quality of crisps ever produced in South Asia and Middle East, the

Super Crisp has opened un-conventional source of foreign exchange earnings for the country.

Starting with their prime product of potato chips, the company has progressively expanded its

product line to include Peanuts, Nimko Mix, a spicy Pakistani snack and other corn/potato

extruded products.

In South Asia and Middle East, Tripple Em ranked first and remained the only company

producing premium quality snack food items. Tripple Em is a recognized member & affiliated to

‘Potato Chips/Snack Food Association of America’ since past several years. The said Institute

holds authority for maintaining quality standards in chips/snack food production of its member

industries. The snacks made from handpicked, farm fresh raw material, sprinkled with world’s

best flavors and spices, processed under strict international hygienic conditions are meant to

satisfy the highest gourmet tastes. Oven freshness of the products is guaranteed by special

metalized film used for packing purposes.

The company offers a range of snack food items to include Potato Chips, Nimko Mix, Peanuts,

corn and potato based extruded products. Nation wide availability of the products is made

possible by a vast and effective distribution network.

Back in 1982, this business firm was created with the vision to cater to the culinary requirements

of the taste buds of the Pakistani nation and at the same time to uphold the qualifications,

preconditions and specifications set internationally by the ISO 9001. They commenced with the

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crunchy product of potato chips of high quality under the brand name of “Super Crisp”. No

doubt the name itself is self-explanatory.

2. Super Crisp : A Success Story

Super Crisp was introduced in 1986. Utilizing the latest technical know-how of U.S.A., a

landmark was created in the food market which till then, had not seen a ‘Light Meal’ or a ‘tit bit’

that could be labeled fresh hygienic, energizing and munchy. Within a short span, it created a

niche for itself, while at the same time the substandard products till then rampant in the food

market had to suffer a major set back. Ever since the consumers (by patronizing) gave a green

signal to the product, the company got the confidence to make headway by adding other products

of the same high standard to the initial one. This family went on growing and peanuts, nimko

mix (spicy Pakistan snack), Dal Moong (fried lentils) enhanced the product line. They become

well aware of the necessity to keep the requirements of the Sweet young Pakistani Kids so they

endeavored to manufacture some extruded products solely meant for the kids but never ever

forgot to maintain quality control, good taste, freshness and flavour in keeping with the tender

taste buds of the little ones. So, in 1992 Potato Stumps, Wheelo Pops, Catty Chins and some

other products were put forward in the market. One important thing, which the top management

visualized was the cost effectiveness for the products meant for kids (even those meant for the

adults are cost effective too).

The products manufactured by Tripple Em gained instant popularity, without promoting it in the

usual way that is currently in vogue in the food market. This reality itself speaks volumes that a

good product is itself a self assured, a self-proclaimed thing that is readily beheld by the seeing

eyes & the eating mouths.

There vision is to provide fresh, healthy, crunchy, handsome and whole some meals in the form

of snacks. They believe in being ethical in their all claims and dealings with the customers,

dealers, and organizations.

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Tripple Em has a clear vision to reach its customers in every nook & corner of urban & rural

areas of Pakistan to satisfy their appetite for tasty & nutritious snacks. They as a market leader

are committed to strictly observe the food safety rules and produce highest quality snacks with

the latest state of the art technology. Being in the Global business, they have adequately

equipped themselves with Quality Management Systems to cater the requirements of their

domestic as well as foreign customers.

They are on the move with innovative ideas to shape the customer desires into products and this

marathon will go on and on..

3. Pakistan & Snacks Industry

Third World Countries are very habitual to adopt the Western Culture therefore; Pakistan is also

in line with those Countries. Big potential do exist for investment in this Industry in Pakistan as

the Demand or Growth rate is very high. Annual Growth Rate of Snacks Industry is estimated at

the rate of 20 % to 30 % per annum.

Children, teenagers and young people are the target market of the product and we have the

experience that the eating habits of the Target Market is rapidly changing and they like to have

Snacks all the time. Further Potato and Corn Snacks are labeled as a meal replacement and being

a light fast food is becoming popular.

The life style is improving and going to be changed and also because of satellite invasion the

demand is bound to register a considerable boost.

The demand of the present market is met by the mix of Branded and Unbranded Chips available

in the Market. There is 60% of the population which is Brand Loyal. However remaining 40% of

the Un-branded Market can be attracted through heavy Advertisement Campaign. The analysis is

as follows:

On the basis of data collected and present survey of the market, current total market is estimated

at 2,000 Tons of Chips which is segregated as follows:

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Segments Share % Quantity (Tons)

Branded 60 1,200

Unbranded 40 800

Total 100 2,000

3.1. Public Sector in Food Industry The share of Food Industry and Allied in Karachi Stock Exchange is approximately 15 %.

Having Capital investment of 7.05 Billion Rupees, the Share of Profit is about 19% which is

insignificant.

3.2. Local Competition AnalysisAs there are very few corn based chips already existing in Pakistan for example Kurkuree, I

believe that our company and the product will be competing with all potato chips manufacturing

companies.

Some of the Leading Potato Chips Companies in Pakistan are:

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COMPANY NAME BRAND NAME

Standard Foods (Pvt.) Limited Golden Chips

Tripple EM (Pvt.) Limited Super Crisps

Kohinoor Smith (Pvt.) Limited Smiths

Consolidate Kolson

Pepsi Co Lays

Presently, Triple Em which produces major share that is about 50 % and is a market leader.

Good potential exists for a new brand to compete and fetch a market share provided that:

Having good quality of product

Unique Packing

A market Network

Industry Understanding

Financial Soundness

Feed back of Information

Preferring the taste of the Market

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4. Market Analysis

Brands Market

Prices

Buying

Price for

Distributors

Margins

offered to

Retailers

Sourcing Market

Share

Segmentation

TM 10 9 10% Local 50% Age:5-20

Loyal, Middle &

upper middle class

Lays 10 8.9 12% Saudi

Arabia

15% Age : 5 – 25

Quality Oriented,

Middle and upper

middle, Heavy

users, Complaint

Golden

chips

5 4.35 13.5% Local 15% 5-20

Sec B & C,

Quantity oriented

Pringles 100 Rs85 15% Imported 5% 15-30

Extrovert ,Quality

oriented, upper class

Disel

Chips

10 6.66 33.5% Local 10% Benefits

oriented(quantity

lovers), SEC B,C

Kolson

Chips

10 8.5 15% 3% ----

Super Crisp

Super Crisp is the market leader with maximum market share of almost near 40%. Now they are

in big threat due to lays. The age segment for Super Crisp ranges from 5 – 20.

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Golden Chips

The sale price of golden chips is RS 5. They are targeting to SEC B & C.

Kolson Chips

Kolson successful products include Slanty. They have chips but they are not successful and

usually not regularly available.

Pringles

Pringles is imported from other countries by P&G. They are hygienic, best quality crisps and

they are quite expensive. Pringles are targeting to Sec A1 & SEC A2.

5. Frankies Introduction

Tripple-em introduced its new brand in the market in February-March 2007. The brand name

they chose for it is “Frankies”. Frankies is supposed to be parallel to Super Crisp. Tripple-em

wanted to achieve two goals from the launch of this new brand. Firstly, they wanted a new brand

in their product line on their Silver Jubilee. Secondly, they wanted to fill the gap in market price

structure. Tripple-em already had its products in prices of Rs.5, Rs. 10 and Rs. 20. They planned

to give a tough competition to its competitors who have introduced their products in Rs. 15

category.

Being the market leader, they introduced Frankies with different tastes in order to capture the

consumers with diverse tastes. They have tried to segment the market according to the social

economic classes. The segmentation and target market of the product is described below.

6. Market Segmentation

In the case of Frankies, the market has been divided into segments based on income as well as

the psychographics of the society. The market consists of people in different income brackets. In

Pakistan the income level of a person is the only determinant of the social class he belongs to.

The society is divided into different classes called the Socio Economic Classes (SEC). The SEC

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A is the elite class or the upper class of the society; SEC B is the middle class of the society;

whereas the SEC C is the lower class of the society. The income level or the social class of an

individual is a key variable in the determination of the demand for all the products in the market.

Figure: Market Segmentation

6.1. Consumer SegmentThe consumer segmentation for Frankies is as follows:

Geographic Launched in all main cities of Pakistan

Demographics

Age

Gender

Family Life-Cycle

5 – 25 as core target market

Male, Female.

Young, Single, Children, New couples.

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Income

Occupation

Education

Pak Rs. 25000

College and School going students.

Prep – Masters

Psychographics

Social Class

Life-Style

Personality

Middle, Middle Upper, Upper class.

Social, Food Lover , Sporty

Extrovert, Complaint

Behavioral

Benefits

User Rates

Loyalty Status

Readiness Stage.

More material, Instant gratification, Good

taste

Light, Medium and heavy users.

None, medium and strong as well.

Unaware, informed, present user.

Source: Mr. Awais Malik, Assistant Brand Manager, Tripple-em

7. Target Marketing

Targeting a market is a critical factor in the marketing strategy of a company. The target market

should be in accordance with the company’s goals and objectives. Therefore we will evaluate

each segment to judge the correct target market for Frankies.

Socio Economic Class A

The SEC A is the upper class of the society. It consists of the people who are blessed with every

luxury money can buy. They have a lot of money and need to spend it at everything that satisfies

them. TM has identified this market segment as its prime target consumers. Frankies chips are

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targeted towards the market gap that is the higher price market. Currently there are no

manufacturers producing Rs. 15 and Rs. 25 packs. Therefore this segment of the market was

untapped and TM had decided to cater to the higher end customers.

Socio Economic Class B

This is the middle class of the society. The people in this class are the largest part of the society.

These people are the largest consumers as they provide the largest volume for the company.

Frankies are also targeted towards these customers as they have the economic power to move

towards a higher priced product. This class of the society is very attractive as it promises to bring

high volume to the business and can prove to be the most profitable segment of the market.

Socio Economic Class C

This is the lower class of the society. It contains people who are financially not that well off and

are struggling to make ends meet. This part of the society is not a consumer of higher priced

snack foods. Those people who do, consume these products, are very price conscious. Therefore

this segment of the society does not form the target market for the product.

After an analysis, we conclude that target market of Frankies chips is the A+, A and B segments

of the society.

8. Opportunity Analysis

After having a meeting with Mr. Awais Malik, assistant brand manager of Tripple-Em we were

able to identify the following problems:

1. Tripple-Em categorizes its target market into five categories. For Frankies the market has

been divided into segments based on income and psychographics. There are five

categories namely A+, A, B, C and D (A+ being the richest class). For Frankies they have

only targeted A+, A and B class. The problem that they are facing is they have not

distributed their product in low line areas categorized as C and D even though the

demand does exist in those areas. So company is facing a distribution problem.

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2. Another problem faced by Tripple-Em is the shortage of space in the departmental stores

to keep separate racks for displaying their product. For that reason they are keeping

brands of different companies in one rack resulting in loss of identity for a particular

brand.

3. Another major problem faced by Tripple-Em is the lack of interest shown by retailers

and the distributors in reselling and distributing their stock.

4. Advertising by multinational companies is a recently faced serious problem for Tripple-

Em. As Tripple-Em has always been a market leader in Pakistan’s snack industry with no

major competitors as such, so they never needed to emphasize on advertising in the past.

But due to heavy budget advertising from their multinational competitors like Lays, the

company is now exposed to serious threat that might result in a decline in sales.

9. Information Needs

Keeping the above mentioned problem faced by Triple-em in gaining a desired and significant

market share for their newly launched product, Frankies, we need to collect the following

information that would facilitate our research processes. They include:

The reasons behind retailer’s reluctance to buy Frankies.

To find our reasons for retailers preference for other competitor brands.

The reasons behind distributor’s reluctance to stock Frankies.

To find our reasons for distributer’s preference for other competitor brands.

To see if Frankies is geographically well distributed.

To find out the general image of Frankies among the general public.

To see if consumer demand for Frankies really exists in the market.

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To see the impact of the multinational competitor’s on Tripple-em’s sales.

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10. Research Proposal

10.1. Purpose of the Proposed Research Project

10.1.1. Problem Statement

The problem of this study is to determine the factors affecting the sales/demand of distributors

and retailers of Frankies products.

10.1.2. Research Objectivesa. To find whether higher margins to retailers affect their choice of brand.

b. To find whether expiry retake and damage retake effect the choice of brand for

retailers.

c. To find whether incorrect placement takes place and whether it affects the company’s

image.

d. To find whether the entry of multinationals affected the operations of the company.

e. To find whether the credit policy affect distributor sales.

f. To find whether the positioning according to the geographical locations, the most

favorable way of positioning the product.

g. To find whether there is enough demand for the Frankies products in the market.

10.1.3. HypothesisThe following are the hypotheses that are to be tested in the study.

a. No significant difference exists between brands with higher margins and brands with

lower margins, with regards to retailer demand.

b. No significant difference exists between brands with expiry/damage retake and

brands with no expiry/damage retake, with regards to retailer demand.

c. No significant difference exists between brands with correct placement and brands

with incorrect placement, with regards to company image.

d. No relationship exists between brands with retailer-friendly credit policy and their

corresponding retailer demand/distributor sales.

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e. Product demand depends on general income level of a geographical location.

f. No significant relationship exists between the consumer and placement of brand with

regard to customer’s choice/ selection of brand.

g. No relationship exists between consumer‘s demand and income level.

h. There is no relationship between the consumer’s demand and advertisement by

competitors.

10.2. Type of StudyThe type of research design that has been chosen for the above mentioned problem statements

are the exploratory research design and descriptive research design.

10.2.1. Exploratory ResearchExploratory research focuses on collecting either secondary or primary data and using an

unstructured format or informal procedures to interpret them. It is often used to classify the

problems or opportunities and it is not intended to provide conclusive information from which a

particular course of action can be determined.

Descriptive research uses a set of scientific methods and procedures to collect raw data and

create data structures that describe the existing characteristics of the defined target population or

market structure. The data and information generated through descriptive designs can provide

decision makers with evidence that can lead to a course of action.

The main reason for choosing exploratory research design is that it helps in breaking a broad and

vague problem into precise sub problems. As the problem is unclear and we don’t have much

insight into the problem, therefore it is better for the research to be conducted according to the

exploratory research design first. The problem will be divided into specific hypothesis. Then

each hypothesis will be tested in the descriptive research phase to find out the precise problem

and hence the solution to the problem.

Through exploratory studies we will identify the possible reasons for low sales/demand of

Frankies by retailers and distributors. We will also looking at the demand side of Frankies by the

end consumers to get insight into the real factors involved.

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Mr. H.M Avais Malik, Asst. Brand Manager, Frankies, Triple-Em, gave us a brief introduction

of the company and the background behind the launch of Frankies. During these discussion

sessions he shared the possible causes for the problem under concern. We derived the hypothesis

listed earlier.

Through Exploratory research we will be able to ascertain these hypotheses and further discover

more of them as we interview and question different retailers and distributors.

Exploratory studies include literature search, experience search, focus groups and analysis of

selected cases. Literature search is one of the quickest and cheaper ways to discover

hypotheses. Literature searched depends on the problem being addressed. Unfortunately in our

case literature search is not possible because we do not have access to any published material or

the company’s internal records.

Experience survey is an attempt to tap the knowledge and experience of those familiar with the

general subject being investigated. We will be conducting an experience survey with anyone who

has association with the retailing and distribution of Frankies. In our case this would include the

retailers and distributors itself since they have both experience and knowledge of the market.

Focus groups are currently one of the most frequently used techniques in marketing research

since they have proved to be productive for generating hypothesis, information helpful in

structuring consumer questionnaire and securing impressions on the product under discussion.

We will conduct 2-3 consumer focus groups consisting of 8-12 members. Special care would be

taken of selecting respondents in such a way that each group is relatively homogeneous. This

would minimize both conflicts among group members on issues not relevant to the study

objectives and differences and preferences. We will select a moderator who is intimately familiar

with the purpose and objectives of the research. He or she would possess good interpersonal

communication skills.

Analysis of Selected Cases are not executable in our case due to certain limitations of timings

and resources.

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10.2.2. Descriptive ResearchDescriptive research uses a set of scientific methods and procedures to collect raw data and

create data structures that describe the existing characteristics of a defined target population or

market structure. Our exploratory research is followed by a descriptive research because

descriptive research designs are appropriate when the research objectives include determination

of the degree to which marketing variables are related to actual market phenomenon. We would

look for answers to the how, who, what, when and where questions concerning different

components of a market structure.

Our descriptive studies would help Tripple-Em to draw inferences about their customers,

competitors, target markets, environmental factors, retailers and the distributors. Descriptive

research would best suite the problem in hand because initially we need to identify that that

actually is the reason for the low demand of the product (less than expected), either it’s the

retailer/distributors or the customers. Although there is not a decline in the sales but at the same

time demand is not meeting the expected figures. Now the company is worried and wants to

know if it is the consumer’s side which is facing a decreased demand or there is a problem at the

distributor/retailer end which has made them reluctant to re-order Frankies. Descriptive research

would help us find the actual cause for this slow down in Frankies demand.

The basic division of descriptive study is between longitudinal and cross sectional design.

Longitudinal studies involve panels of fix sample of elements which are measured repeatedly

whereas the cross sectional study being the most common and most familiar method involves a

sample of elements from the population of interest, which are measured once only. For the

purpose of our research we choose to stick to the cross sectional study. It has two distinguishing

features. First, it provides a snapshot of the variables of interest at a single point in time, as

contrasted to the longitudinal study, which provides a series of pictures that, when pieced

together, provide a movie of the situation and the changes that are occurring. Second, the sample

of element is typically selected to be representative of some known universe. Therefore, a great

deal of emphasis is placed on selecting sample members, usually with a probability sampling

plan. That is one reason that the technique is often called a sample survey. The probability

sampling plan allows the sampling error associated with the statistics generated from the sample,

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but used to describe the universe, to be determined. The “large” number of cases usually

resulting from a sample survey will also allow us for cross-classification of the variables.

Cross sectional study involves counting the simultaneous occurrence of variables of interest. For

example consider the following hypothesis:

There is no relationship between the customer demand for Frankies and income level.

This hypothesis could be examined under cross sectional study. Measurement would be taken

from a representative sample of the population with respect to the customers demand and their

income level. In cross tabulation we would count the number of cases that fell in each of the

following cases:

High customer demand for Frankies and high income level

High customer demand for Frankies and low income level

Low customer demand for Frankies and high income level

Low customer demand for Frankies and low income level

10.3. Definition of Target PopulationThe study is related to the consumers, customers, the retailers and the distributors. The core

target consumers of Frankies are both male and female and mainly belong to the age segment of

5 to 25. They belong to the Middle, Middle Upper, Upper class social class are fun loving and

sporty.

These consumers will be studied to determine whether the demand for the product actually exists

in the market, as claimed by the management. This will help us in proving whether the

distributors and retailers are not ordering the Frankies products due to the problems previously

listed, or there is not enough customer pull present for the product.

The retailers will be studied in order to test our hypothesis regarding the problems with retailers.

The hypothesis regarding the placement of product; margins; expiry/damage retake and credit

policy; are directly concerned with the retailers and their demand for the product. The retailers

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will be selected from the different regions of Lahore. The regions will include Gulberg, Defense,

Model Town and Johar Town.

The distributors are also included in the study as they are an important part of the supply chain.

Some of the problems relating to the retailers are common with distributors. The hypothesis

regarding the margins; expiry/damage retake; credit policy and the distribution of product; are

related to the distributors. The distributors will be selected from Gulberg, Defense, Model Town

and Johar Town.

10.4. Data Collection MethodThe data relating to the consumers and the retailers will be collected through self-administered

surveys. It will include different questionnaires for consumers and retailers.

The data relating to the distributors will be collected through personal interviews. The

distributors will be contacted by the management’s referral.

10.4.1. Sampling MethodDifferent sampling methods will be used for the different target populations. The reason for

choosing different methods is that the populations are different in nature. The distributors are

small in number and hard to contact, therefore a snowball sample will be used to select the

distributors in the desired areas. This will be a non-probability sample.

The retailers on the other hand are larger in number therefore the chosen sample will have

respondents from different geographical areas of Lahore. We have selected four key areas for

research in Lahore namely Gulberg, Defense, Model Town and Johar Town. We will randomly

select the retailers in these areas and conduct our study through questionnaires. The

questionnaires will be specifically designed for the retailers in order to get the desired

information.

The consumers are the largest of the target populations, in terms of size. As they are present

everywhere therefore a simple random sample will be used to select the sample. The sample will

be selected from different retail outlets as well as other places, so that we get an un-biased result.

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A questionnaire will be used to gather the required information, and it too will be specifically

designed for the consumers.

10.4.2. Sample SizeThe sample size that will be used will be dependent of the target population. These sample sizes

have been discussed and been approved by our client.

We will study 4 distributors. The reason for selecting a small sample is that the target population

is small in size and a single distributor is responsible for the distribution of a large area.

Therefore a small number of distributors will be representative of the target population.

Moreover, we will select 50 retailers for the study. We will select around 10-12 retailers from

each area under consideration. This sample size will be representative of the retailer target

population and it will provide us with comprehensive insight into our study.

We will select around 500 consumers for the purpose of study. We feel that it is a considerable

sized sample taking into accounts the time and resources for the project.

10.5. Specific Research Instruments The data from the retailers and consumers will be collected through a questionnaire. The

questionnaire will be designed in accordance with the hypothesis. The questionnaire will help us

in determining the outcome of the hypothesis. Moreover the interviews with the management and

distributors will also help us in gaining insight into the problem at hand.

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The following are the scale measurements that will be used for the analysis of the variables.

Hypothesis Source

Scale of

measurement

Measure of

averages

Variable 1 Variable 2 w.r.t

Brands with high margin Brands with low margin

Retailer

demand Retailer Ordinal Mean

Brands with expiry retake

Brands without expiry

retake

Retailer

demand Retailer Ordinal Mean

Brands with correct

replacement

Brands with incorrect

replacement

Company

image Retailer Nominal Mode

Retailer-friendly credit

policy Retailer demand

Retailer /

Distributor Nominal Mode

Product demand Income level Retailer Interval Mean

Consumer Placement of brand

Selection of

brand Consumer Nominal Mode

Consumer Income level Demand Consumer Interval Mean

Consumer

Advertisement by

competitors Demand Consumer Ordinal Mean

10.6. Potential Managerial Benefits of the Propose StudyThe study will help the management in understanding the different problems faced by the

retailers and distributors. They will get to know the source of the problems, i.e. who is

responsible for generating those problems. This information will help them with formulation of a

strategy that can solve the issues with their retailers and distributors and they will be able to

satisfy them in a better manner or, on the other hand, try to satisfy their customers in order to

increase market share. The resolution of problem issues will lead to an increased interest in the

purchase of Frankies products and hence a larger sales volume and market share.

10.7. Proposed Cost Structure of the Total ProjectThe following is the proposed cost structure of the project:

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Proposed Survey Size

500 consumers,

4 Distributors,

50 Retailers

Time Duration Available: From 7th September 2007 to 5th December 2007

NO: DESCRIPTION TOTAL

1*

Survey expense for 500 consumers

within Lahore (expected time: 1 week) Rs: 3,000.00

2*

Visit to four distributors for

interviewing(expected time: 2 days) Rs: 500/day Rs: 1,000.00

3*

Survey Expense for 50 Retailers

(expected time: 1 week) Rs: 2,000.00

4* 6 visits to Tripple-Em Rs: 250 Rs: 1,500.00

5 Paper Cost Approx: 250 papers Rs: 2 Rs: 500.00

6 Stationery cost Rs: 1,000.00

7 Entertainment Expense Rs: 5,000.00

8 Total Cost Rs: 14,000.00

Note * these costs covers fuel cost and all survey materials used for surveys

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11. Exploratory Research Implementation

11.1. Experience SurveyWe used the experience survey to get an insight into the problem. We have a vague problem and

we needed to break it down so that we can research it thoroughly. For this reason we interviewed

the assistant brand manager of Triple-em and some retailers to gain an insight into the major

problems being faced by the retailers and distributors. We also conducted a focus group of 10

people to get to know whether the customers are aware of the brand.

11.1.1. Experience Survey of Assistant Brand ManagerWe interviewed the assistant brand manager of Tripple-em, Mr. Awais Malik. We interviewed

him due to two reasons. Firstly he gave us the insight to the management’s viewpoint of the

problems and secondly as he is in direct interaction with the retailers and distributors therefore

he was in the position to give us some insight into their problems as well.

1. What in your opinion is the market response of Frankies chips?

Frankies has had a successful launch and is liked by the customers very much. Despite of

this fact, the sales are not as we had hoped them to be.

2. What do you think is the main reason for slow sales?

I think the main reason for the slow sales is the retailers and distributors. They are not

demanding the product as they should.

3. Why do you think this is?

In my opinion there are a lot of factors that can affect their demand. It can be higher

margins by competitors or other issues caused by distributors.

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4. What are those issues specifically?

Well for starters, some distributors do not offer credit or expiry retake to retailers, so

they are put off by the idea of keeping a brand, especially if it’s new because the market

response is not predictable.

5. How have you distributed the product?

We have positioned the product as a high end consumer product. That is why we have

kept the price a little high. Moreover we wanted to capture the high end market segment

therefore we have distributed the product only to the high line areas.

6. Do you think that this may be causing some problems?

To some extent, yes. There are areas where the demand exists but the product is not

available so it affects our sales. Moreover our brand is not correctly placed on the

retailer’s shelves. This also is a factor affecting the brand’s image.

7. What is the promotional strategy followed by Frankies?

We are not promoting the product that extensively. The main reason is that the name of

Tripple-Em is a promotion in itself. We don’t need to do extensive promotion of the

brand.

8. Don’t you think that the multinationals that have come in the market will affect your

customer base?

Yes they are giving our brand a tough time. But considering the marketing budget they

have, I think we are doing fine. These brands have an international presence so the

customers are attracted to them more easily.

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11.1.2. Experience Survey of RetailersWe conducted an experience survey of five retailers in order to confirm the problems that were

mentioned by the brand manager.

Name of the Store: Ghafoor General Store

Name of the Owner: Mohd Latif

Telephone # : 6681555

Location : Rahat Complex, Lahore Cantt.

1. What is the margin structure offered to you?

Margins offered are almost the same for all the brands of snacks which include triple-

Em, lays, golden chips etc. Where the difference comes is the promotion strategies e.g

Lays are offering 1 liter Pepsi bottle free of cost with one carton of Lays. This is quiet an

attractive offer for us (retailers) to prefer Lays over any other brand of snacks.

2. How important are margins for the sales?

Margins are not too much of an importance because we generally prefer to have all

snack varieties at our store. Therefore, because of an additional promotional offer,

although we do prefer to have greater stocks of Lays, but we cannot afford to have only

Lays because it can limit the snack variety available at our store.

3. What are the implications of higher margins by other manufacturers?

As already discussed, the margins barely vary between different companies.

4. Is expiry retake and damage retake offered to you?

Yes, Triple-Em guarantees all kinds of expiry and damage retake.

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5. What are the problems relating to expiry retake?

No problems as such.

6. How does expiry retake and damage retake effect your demand?

It doesn’t effect the demand.

7. What is the credit policy offered to you?

It depends on the track record; if our previous track record with the distributer is trust

worthy, then they do offer us a relaxed credit policy.

8. Does a friendly policy positively affect your demand?

Obviously yes, a healthy relationship between me and my distributer does have a positive

impact on our transaction frequency.

9. Do you think that there is enough demand in the market for Frankies?

Not as that of lays, most people are generally unaware of the name Frankies.

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Name of the Store: Stop And Shop

Name of the Owner: Shahid


Location : PAF Complex, Gulberg.


Same as offered to by others. It is around 2 rupees per pack.


We prefer to stock those brands which save us the most, so it is important in a way.


We try to sell those products more.


Yes, it is offered by TM.


No problems regarding this issue.


Not at all.

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We prefer on spot payment mainly.


Yes, at times we can issue them post dated cheques. It does help for the business’s

liquidity.


Lays on the top, Supercrisp on number two.

10. If not then what do you think are the reasons and if it is then why do you think that the

company is not happy with the sales?

I think there is not enough awareness about the brand.

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Name of the Store: Cash and carry

Name of the Owner: Munawar


Location : PAF Complex, Gulberg.


Same as offered by others in the market.


We like to buy products with high margins.


We also require variety as well regardless of margins.


Yes it is offered by almost all the manufacturers.


No problems are currently faced by us.


We currently are not faced by us so I cannot comment on it, but it is obvious that if it is

not offered to us then we will certainly think about it a couple of times.

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We have the option of late payment. We give post dated cheques to our distributors.


Yes it definitely does.


Lays is on top, but Frankies demand is very slow.



People are not aware of Frankies.

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Name of the Store: Fresh Inn

Name of the Owner: Irfan

Location: Barkat Market, Garden Town


It is around 2 rupees. It is about the same as other brands.


Yes it is important. We do consider product margins when ordering the product.


It is not of much importance as we also have to think about product variety in our store.


Yes it is offered by almost all the manufacturers.


No problems are currently faced by us regarding the expiry retake as the time of the

product life is long enough, and the product is mostly sold out before expiry.


It does make a difference as we have to put customers first.

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We don’t take products on credit, so it is irrelevant.


Yes it should effect the retailers which require retailers.


The demand is very slow, we have problems selling the chips so we don’t order Frankies

that regularly.



People are not aware of Frankies, there is not much demand.

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Name of the Store: Quick Check

Name of the Interviewee: Asim

Location: Barkat Market, Garden Town


It is around 2 to 2.5 rupees. It is about the same as other brands.


Yes it is important. We try to sell those brands which offer more margins. We place them

at attractive places and recommend those products to customers.


It is certainly important. We buy a higher quantity of those products. Take an example of

lays, they promote by giving a bottle along with a box of chips, so it is attractive for us.


Yes it is offered by all the manufacturers.


No problems are currently faced by us regarding the expiry retake. The distributors take

the products very happily.


It makes the difference when we select the brand. If some brand does not offer us this

then we will not take that product any more.

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We don’t take products on credit. We order around Rs.3000 of chips and we pay them

cash.


It is irrelevant.


The demand is very slow. You can see that we have other products stacked in frankies

display as the demand is not very good.



There is not enough promotion of the brand.

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11.1.3. Findings from the Experience SurveysAfter interviewing 13 retailers we found that only five retailers have Frankies chips. Out of the

rest only 2 knew about it and the rest have no idea what Frankies is, despite the fact that they had

Super crisp. We also found that the main problem with Frankies is that the customer demand is

low. Although there are some problems with the distribution channels, but the customer factor is

a major influence in the demand of the retailers. Therefore now we are making the customers, a

major part of our study.

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11.2. Focus groupFor the purpose of generating more possible hypothesis for the concerned research, we

conducted a focus group of around 9-10 individuals to talk about Triple-em’s Frankies. These

members included college going students, both male and female picked up randomly from

Lahore School of Economics. They lied more or less in age bracket 18-25. These were primarily

the consumers of Snacks. Our major goal was to focus on the four P’s of the marketing mix to

find out in detail what the audience thought about each one of them when it comes to Frankies.

11.2.1. Findings From the Focus Group

Product

From among the members of the focus group, only 50% were aware of Frankies, only 20% had

ever tasted Frankies and none of them was a die heart fan of Frankies. Most of them thought that

they eat Frankies primarily because they don’t have a lot of snack options in Pakistan. So

whenever a new snack product is launched, you tend to give it a try basically due to the limited

nature of other options available. Moreover some respondents were just not satisfied with the

flavor options currently being offered by Frankies. They believed that the flavor ‘Sour cream and

Onion’ tasted nothing like sour cream or vinegar. Moreover, some were of the view that these

flavors seemed to be a typical copy of the flavors offered by Lays.

Although none of the respondents showed a strong dislike for Frankies, but the general

impression was they weren’t too happy with the snack. Some compared Frankies to Lays as

being somewhat soggy and not very fresh and crispy like Lays was.

Another factor which the annoyed the diet conscious respondents was that the nutritious value

per serving is nowhere mentioned on the Frankies packet. Some even looked displeased with the

appearance of the packaging; they were of the view that it could have been made far more

attractive.

The respondents felt that the brand name is not a determinant of the demand of the products,

particularly in the snack food industry. So they wouldn’t buy Frankies merely because it’s a

product of Triple-Em, the renowned producers of Super Crisp.

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Price

All the respondents of the focus were more or less indifferent to the price of Frankies, because

the believed that the slightly higher price (Rs.15 as compared to other Rs.10 snacks) of Frankies

was compensated by the additional chips quantity in a packet. Moreover, they were of a stern

belief that when it come to snacks, what matters the most is its unique taste and not the price

itself (but obviously this statement can vary when asked from the lower income groups; which

would be more authentically verified in descriptive research).

Place

Most of the respondents believed that Frankies were not as easily available at the retail stores as

were other snacks. Some even said that it wasn’t the shortage of supply that causes this

unavailability, but it was primarily because of the unawareness of Frankies among the retailers.

So the respondent were of the opinion that it is impossible to expect from the customers to know

about Frankies when even most of the retailers consider the Frankies an alien name in the snack

industry.

Promotion

It was surprising to know that of all the members of the focus group, only 50% had ever heard

about the name Frankies. This triggered the uproar that good promotion was an essential

ingredient to guarantee the success of a product. Most of the respondents barely remembered any

billboards, TV commercials or any other form of advertisement done by triple-Em to promote

Frankies.

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12. Questionnaire Design

12.1. Consumer QuestionnaireRef No:……

1. What is your gender? Male Female

2. What is your age?

10 - 15 16 – 20 21 - 25 26 - 30 31 - 35 36 – Above

3. What is your occupation?

Student Professional Businessman Other

4. Are you a frequent purchaser/consumer of snacks? Yes No

If No then proceed to Q No. 16.

5. Which brand of chips first comes in your mind?

Super Crisp Lays Frankies Golden Chips Other, Specify_______________________

6. Indicate your degree of familiarity with the following brands?

Never Heard of Heard of But Never Tried

Tried Eat/Buy Regularly

Super Crisp

Lays

Frankies

Golden Chips

7. Who do you purchase the snack for?

Yourself Your Children Friends Family Others

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8. Rank the following brands in order of Preference from 1 to 4, (1 being the most preferred and 4 being the least preferred).

Super Crisp ____ Lays ____ Frankies ____ Golden Chips ____ Not Tried Any of the Above

9. Where do you normally purchase snacks from?

Department Store General Store Road Side Khokha Cafeteria Other, Please Specify______________________

10. Rank the following factors affecting your choice of chips according to their importance. (Tick one option for each factor).

Extremely Important Important Neutral

Not Particularly Important

Not At All Important

Brand NameChoice of FlavorsNutritional ValueTasteFreshnessPackagingPriceNaturalnessAvailabilityAdvertisement

11. Have you ever tried Frankies? Yes No

If No then proceed to Q No. 16.

12. How did you come to know about Frankies? (Tick All that Apply)

Radio Television Billboards Personal Recommendation Retail Store

Other Source__________________________________________

13. When was the last time you heard or saw an advertisement of Frankies?

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Within the last month 1-6 months More than 6 months Never

14. How often do you purchase/eat Frankies chips?

At least once a day Once every 3 days Once every week Once a month Only bought them once Never

15. How do you rank the following characteristics of Frankies Chips? (Tick one option for each factor).

Extremely Satisfied

Satisfied Neither Satisfied Nor Dissatisfied

Dissatisfied Extremely Dissatisfied

Price

Quality

Taste

Quantity in a Pack

Flavors

Availability

Packaging

Nutritional Value

Brand Name

Problems Regarding Frankies

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Additional Comments/Suggestions

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

16. What is your approximate monthly household income level? Rupees

10,000 or less 11,000 to 20,000 21,000 to 30,000 31,000 to 50,000 51,000 to 80,000 81,000 or more Prefer not to answer

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12.2. Retailer QuestionnaireRef No:……..

1. Rank the following factors affecting the choice of chips you stock according to their importance. Tick one option for each factor.

Extremely Important

Important Neutral Not Particularly Important


Brand Name

Margin

Expiry Retake

Credit Policy

Demand of Brand

Promotions

Distributor

2. Which of the following brands do you keep in your store? (Tick all that apply)

Super Crisp Lays Frankies Golden Chips

3. Which of the following has the best Brand Name?

(Rank from 1 to 5, 1 being the best and 5 being the worst)

Super Crisp ____ Lays ____ Frankies ____ Golden Chips ____ Other ____, Specify Brand:____________________________________

4. Which of the following has the best Margins?



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5. Which of the following sells the most?



6. Which of the following has the most attractive Promotions?



7. Which of the following brands provides Expiry Retake? (Tick all that Apply)

Super Crisp Lays Frankies Golden Chips Other, Specify Brand:____________________________________

8. Which of the following brands provides a Credit Policy? (Tick all that Apply)

Super Crisp Lays Frankies Golden Chips Other, Specify Brand:____________________________________

9. Which of the following has the best Placement in your store?



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10. Please specify any problems relating to the distributors of Frankies chips.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

11. Please specify any problems relating to Triple-Em.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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12.3. Distributor QuestionnaireRef No:……..

1. Rank the following factors affecting the choice of chips you distribute according to their importance. Tick one option for each factor.

Extremely Important

Important Neutral Not Particularly Important


Brand NameMarginExpiry RetakeCredit PolicyDemand of BrandPromotionsManufacturer

2. Which of the following has the best Brand Name?



3. Which of the following has the best Margins?



4. Which of the following sells the most?



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5. Which of the following has the most attractive Promotions?



6. Do you offer a Credit Policy to Retailers? Yes No

7. Do you offer Expiry Retake to Retailers? Yes No

8. Please specify any problems relating to the Retailers of Frankies Chips.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9.. Please specify any problems relating to Triple-Em.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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13. Sampling Plan

13.1. Target Population

Consumer

The target population for the survey is the consumers and customers of potato chips. The target

population comes under the age bracket of 10 years to 50 years. As the objective of the study is

to find out the demand of Frankies chips, as well as factors influencing the demand of potato

chips; therefore all the consumers and customers of potato chips are included in the target

population so that we can get an objective view of the situation.

The target population includes school going children who form a large portion of the potato

chips demand. The guardians of these children are also part of the target population as they are

the customers of potato chips.

Furthermore, college and university going students of ages 15-25 are included in the target

population because they are the target customers of Frankies. Inclusion of the target population is

vital for the study as it will provide an insight into the marketing strategy of Frankies.

The elder population is also being included in the study as they are involved in purchase

decisions and also influence the attitudes and behaviors of young school going consumers.

Retailer

Both large scale and small scale retailers who sell snacks are included in the target population.

This includes all the General and Departmental stores having aisle of snacks. Inclusion of

retailers in the study allows us to get insight regarding the placement of product; margins;

expiry/damage retake and credit policy; which are directly concerned with the retailers and their

demand for the product. The retailers were selected from the different regions so that we could

get a representative sample for our study.

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Distributor

The target population for the survey is all the existing distributors of Triple-em products. This

will allow us to understand their problems, distribution channels being used and their demand for

Frankies.

13.2. Data Collection MethodThe data relating to the consumers and the retailers was collected through self-administered

surveys. It included different questionnaires for consumers and retailers.

The data relating to the distributors was collected through interviews both personal and

telephonic. The distributors were contacted by the management’s referral.

13.3. Sampling FramesThe sampling frames of distributors were taken from Tripple-em and the sampling frames of

retailers were taken from the distributors. The sampling frames include names and locations of

all the distributors and retailers so that we can easily contact them when we collect data for our

study.

13.4. Sampling Method

Consumer

The sampling method used for consumers will be judgment sampling. The reason why it is

difficult to use any probability sampling method is we do not have any information about the size

of the population. So we will be trying to use our own judgment to involve the most suitable

snack consumers in our survey.

Retailer

The sampling method to be used for retailers was cluster sampling which is one of the

probability sampling methods. This method divides the sampling units into mutually exclusive

and collectively exhaustive subpopulations, called clusters. Each cluster would be representative

of the heterogeneity of the target retailer population. In our study, the list of retailers was to be

obtained through distributors and was to be classified into clusters according to geographical

locations. But due to the non availability of information from the distributors, we were not able

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to conduct the cluster sampling. We conducted the sample as a non probability sample and did

the sampling on Judgement. We went to different markets of Lahore and surveyed different

retailers. We were able to gather information from 43 retailers.

Distributor

The distributors were selected through a convenience sample. As there are a limited number of

distributors and we have to select only those distributors who are catering to our target retailers,

therefore we selected only those distributors who are conveniently available for questioning.

Moreover, due to the confidentiality some distributors were not willing to give information

regarding their problems with Tripple-Em, therefore the distributors were contacted through the

management so that there is a level of trust between us.

13.5. Sample Size The sample sizes that we will choose for all the three populations; the consumers, retailers and

distributors would be in accordance to the corresponding population sizes. That is, larger sample

size to be representative of larger population and smaller size to be representative of smaller

population. The reason behind this is that if we choose a larger sample size for larger population,

it would not just be more representative of the total population, but it would also reduce the

sampling error significantly.

We have studied 8 distributors. The reason for selecting a smaller sample of distributors, as

discussed above is that the target population is small in size since a single distributor is

responsible for the distribution of Frankies to a large area to large number of retailers. Therefore

a small number of distributors will be representative of the target population.

Moreover, we have selected 50 retailers for the study. We selected 10-12 retailers from each area

under consideration. The areas as discussed earlier, include Faisal town, Gulberg, Garden Town,

Model Town and Defence etc.

We selected 400 consumers for the purpose of study. We feel that it is a considerable sized

sample taking into accounts the time and resources for the project. Most of the respondents

would be chosen from the school/college going segment since that is the target market for

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Frankies. Due to some refusals and low quality of data we were only able to collect information

from 292 respondents.

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Documents

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