"Savour Foods"Friday, 30 November 2012

 The Project:

We have been assigned to:Choose the product and then we have to analyze the segmentation of the chosen product. We have to give a detailed profile of the target marketing of the product. After that, we have to analyze that the segmentation of the product is appropriate or not.Giving the opinion of two users of the selected product or service and also giving self-opinion.About the Project:In this project we have chosen “Savour Foods” to analyze the segmentation of their products. For this purpose, we have visited the “Savour Foods” to observe the environment and targeted audience. We also got the opinion of their customers who were there to dine inn. This market research of “Savour Foods” has helped us to understand the segmentation of their products regarding the customers.

The Product/ Services:                                                                                 

“Savour Foods” is one of the famous eating places of Rawalpindi and Islamabad. Most of the population of twin cities is aware of “Savour Foods”. It is located in populated area of Rawalpindi and Islamabad.Owner:Mohammad Naeem ButtOwner’s Profile:Mohammad Naeem Butt is a Business Icon of the business community of Islamabad and Rawalpindi.  He is also involved in social activities. He started selling pulao at cart at Gordon College Road Rawalpindi in early 80’s. This was the time when Rawalpindi was developing as Business Hub and demand of ready to eat quality food was emerging in population. Mohammad Naeem Butt realized the need of the emerging customers at large. He started planning to develop the Dining place which may fulfill the increasing demand of the customers. For this, he started to pool sources to establish a proper dining place for his customers. The market research was made by

him based on his personal experience and result was positive with respect to future growth of his business.

History:Mohammad Naeem Butt as an owner of “Savour Foods” established a proper dining place with sufficient sitting place at the location of Gordon college road in 1988. This was the first branch of the owner bearing a proper selling name. The facility of “take away” was also given in packing.

  Established 2nd branch of “Savour Foods” in Melody Food Park on 7th august 2001 to meet the demand of the customers of Islamabad.

  On 24th March 2005, a new branch of “Savour Foods” was opened at Blue Area to meet the demand of officials of private offices located in Islamabad. Students were also targeted by them.Flourished 4th branch at Rawalpindi Cricket Stadium Food market on 14th august 2005. It was the first branch where a fast food sister brand was introduced with the name of “Savour Krispo”.Nature of Business:“Savour Food” is providing Pakistani as well as fast food. The Pakistani food includes Pulao kabab and Chicken roast while fast food includes Burgers and fries. Ice cream is also sold at savour Foods branches.

Moto:To provide quality and clean Pakistani food specially and fast food generally at reasonable prices.Mission Statement:“To be leader in Quality food at most reasonable prices and preferred choice of enthusiastic manpower”.

Main Product:“Savour Food” provides wide range of 'Pakistani foods’ nutritious and hygienic products at affordable rate. The basic stimulant of “Savour Foods” is the most effective system of quality control. Beef, Chicken, Rice, Veggies and Spices are the basic ingredients of our products. Freshness, fineness and cleanliness are always taken into consideration. We will don’t compromise on our principles of providing good food.

The service is relaxed, very friendly and correct. We will hire the best people available, training, motivating and encourage them, and thereby retaining the friendliest most efficient staff possible. Our management team is comprised of individuals whose backgrounds consist of experience in food, restaurant and hotel, catering, management, finance, marketing, art and motion pictures.The main product of savour Foods is Pulao Kabab. This is the oldest product of the Savour foods.

Maps:

Islamabad Branch (Blue Area):Rawalpindi Gordan College Road:

Chicken Pulao (Single)                                   Chicken Pulao (Single Choice)Chicken Pulao (Single without Kabab)

Chicken Pulao (Single Lunch Box)Chicken Pulao (Special)Chicken Pulao (Special Choice)Chicken Pulao (Special without Kabab)Chicken Pulao (Special Lunch Box)Pulao KababPulao

  

Other Products:Other products of Savour Foods are:

  Savour Krispo Burgers  French fries  Chicken Roast  Savour Hot Shots  Kheer  Zarda  Ice cream

                                          

                                    : Since with the addition of the Rice Processing plant of ”Savour Foods”. They are therefore very uncompromising on the issue of quality.  

Technology:  Since 2002 with the introduction of mechanized rice plant system and rice combine harvesters; today they have latest rice milling and processing facilities based upon technology. They give importance to the state of the art

technology to retain a lofty production level their rice mill is set up with the latest technology. They have very competitive engineers and technology system for the up gradation of plant. This system and the dedicated team of quality control managers work hard to bring the supreme quality rice to “Savour Foods”.

Field of concentration:“Savour Foods” is concentrating on their main product Pulao Kabab. For this purpose they have purchased their own Rice processing plant near kamoki in Gujranwala.  They also have installed a latest plant for making shami Kababs. These plants are maintained properly under the supervision of very competitive engineers.

Benefits of their heavy investment in adoption of technology:Since 2002 with the adoption of technology in the form of Rice processing plant they have increased their output and it has helped them to minimize the cost of production by controlling wastage. Shami kabab making plant helped them to make tasty shami kababs with the same and great taste with the crispy touch. It is also saving time and helping to manage the high demands of the customers Dish washer is saving time and it also maintains the International hygienic standards.

  Methods adopted by foreign companies in term of hygienic environment are set as benchmark.

Services:  Premier dining experience in elegant setting around.  High standard friendly environment.  Delivery on demand at large scale.  Packing according to convenience.  Special orders are hosted prestigiously.  Food arrangements on the seminars and other official meetings.

Facilities and rewards given to employees:Following facilities and rewards are given by the Savour Foods to their employees.

  Free Medical services:  Free Medical services are provided to all the employes whether they are on duty or not.

  Provident fund is maintained for permanent employees: Those employees who are permanent on the pay roll of Savour Foods will get the facility of Provident fund at the time of retirement.

  Accommodation to the lower staff is provided: Lower staff of far areas those family is not settled in Rawalpindi and Islamabad can also get the accommodation facilities provided by the company.

  Transportation to the lower staff those use accommodation of company is also provided:  Transportation is also provided to those workers who use the company’s accommodation.

  Minimum salary of the employee is 10,000:  It is positive thing that the low level staff like waiters, sweepers and helpers get minimum salary of 10,000.Competitors:Competitors are those entrepreneurs who are also engaged in the same nature of business.Competitors in Rice:

  Rice Hut  Student biryani  Saeen Jee murg pulao  Baoo Jee murg pulao  Kamran pulao kabab  Royal Pulao kabab  Nazir Foods  Other small restaurants

        Competitors in fast food:     

  Macdonals  Rahat bakers  KFC  Hardees  Munchees snack bar  Sogo grill  Danty fast food  Nando’s  Other small food corners.

        Competitors in ice cream: Rahat bakers Chaman ice cream Yummy 36 Other small ice cream points

Some people often talks that “Savour foods” had opened their 4 th branch in 2005 and it had been a long time they have not opened their new branch in Rawalpindi or Islamabad so what is the reason behind this?. They have a sufficient investment and there is a need and demand of new branches in Islamabad and Rawalpindi then why they are not opening a new branch? Is there any threat or hesitation which is restricting them to open a new branch?The answer is that they are going to start a mega project.But the questions are that, When and where?

Future Plans of Savour Foods.”Savour foods” is going to start a mega project in the capital city of Punjab which is “LAHORE”. The project is going to be started just after Eid-ul-Adha(Expected) and

working on this project is in progress. They are expecting that the Lahore is a highly populated city and people of Lahore also admire the taste and quality services of “Savour Foods” in some forums so that “Savour Foods” will capture the customers easily.

What is Marketing?“Marketing is the social process by which individuals and organizations obtain what they need and want through creating and exchanging values with others”.

Marketing Strategy:       Marketing strategy includes,

  How to divide-up markets into meaning full customers (Segmentation).  Choose which customer groups to be served (Targeting).  Create market offering that best serve targeted customers (Differentiation).  Positioning the offer the minds of customer (Positioning).

Overview of Marketing Strategies of “Savour Foods”: Segmentation:

           “Savour Food” has divided the market according to the need and demand of their value able customers. For this, they have made different deals at different prices that the individual customer and customers in groups can order according to their demand and need of products.

                   “Savour Foods” has targeted the middle class and upper middle class customers in Rawalpindi and Islamabad. Especially they have targeted the working class of the private sector, students, small and medium entrepreneurs and the other organizations.

Differentiation:                   ”Savour foods” has differentiated the market by providing good services as well as quality Pakistani food specially pulao kabab.

Positioning:                   “Savour Foods” hold positive and good position in the minds of its user. People think that it is providing good service in food items. It has captured a main market in its specialty. It is something thing in which a particular brand make strategies to set the image of brand in the thoughts of people by adopting different ways which includes Promotion, price, distribution, packaging and competition. It is also considered as an aggregate perception of the brand according to Targeted Market.  Some Analyst says that Positioning is necessary for a brand to survive in the competition.

             

How Savour Foods is utilizing the art of Positioning.Savour Foods is utilizing this art very effectively and efficiently. It has created an image  in the minds of its customers  that if someone talks about the quantitative and qualitative food in less price he or she will definitely think about the “Savour Foods” because it has targeted the customers in that way. Their packaging is really convenient and attractive so that people holds a differentiated and positive image of “Savour Foods”.

SWOT Analysis :The term SWOT stands for:StrengthsWeaknessOpportunitiesThreats

             Purpose of SWOT analysis:The purpose of SWOT analysis is to determine the Strengths, Weaknesses, Opportunities and Threats in Concerned business. It helps to keep the business on track and profitable and also helps to achieve the desired goals of any organization. It also help to develop strategy and will reflect the reality if an organization analyze on the basis of facts and figures.

SWOT Analysis of Savour Foods:SWOT analysis of “Savour Foods” is concluded under following grounds.Strengths:

  Delicious products.Products of savour foods are very delicious. They give the traditional taste of Pakistani food and taste in fast food is also maintained very well according to their western recipes.

  Good quality food.Savour foods is providing a good quality food. Their products are made and served according to hygienic standards.

  Quick delivery of take away.Savor foods is providing food with in no time. Products are packed according to the need of customers and order is fulfilled within minutes even customer orders 100 packets. Other eating places do not give this time saving convenience to their customers.

  Sufficient quantity.Quantity of the packed as well as served material is sufficient.

  Packing according to customer’s need and convenience.

“Savour foods” is providing food according to the need and demands of their customer. They have categorize the packages that suits customers according to their desires and purchasing power.

  Shami kabab processing machine.Shami kabab processing plant is also strength of the savour foods. It helps to meet the demands at large by saving the time and maintaining the same taste among all the production.

  Availability of Fast food with Pakistani food.Savour foods is the place which is providing quick Pakistani as well as fast food. A person in a group or family who likes fast food can order fast food according to the desire.

  A strong brand nameWith the passage of time, savour foods have become a strong brand name.  It has an influence on the minds of the people of the Islamabad and Rawalpindi.

  Suitable locations.“Savour foods” has set up their branches on the locations which are suitable to attract customers. These branches are situated at dense areas and lots of organizations are situated near the branches.

  Goodwill.Savour foods have established goodwill effectively.

  Knowledge about customers.Savour foods have privilege that it has researched the needs of their customers. It is aware of their demands and needs so that it is providing food according to the situation. Sometimes owner personally visits the different branches and get the reviews from the customers.

  Hygienic.Savour food is providing hygienic food according to the International Standards.

  Management.Management of “Savour Foods” is very efficient and they control the entire process very effectively.      Weaknesses:

  Delays in the filling of dine inn orders during Rush hours.During the rush hours, customers of savour foods have to wait for their order.

  Unavailability of place for large groups during rush hours.When people visit the “Savour Foods” in a large groups they have to face the problem of sitting together.

  Limited to certain areas of Rawalpindi and Islamabad.It is limited to the certain areas of Rawalpindi and Islamabad. The people who are brand loyal or admire the taste of “Savour Foods” has to travel a lot which is time consuming as well as inconvenient.

  Lack of relation building with customers.Although it has knowledge about the customers but still Savour foods do not concentrate on relation building with customers.

  Conflict with Capital Development Authority.

Savour Foods blue area branch have some conflicts with Capital Development Authority. Parking area and the place where generator is installed are not proper and CDA do not allows it because it is not legal.  Opportunities:

  A sizeable population is living at distant places from Savour Foods’ current branches and customers have to rush towards it by consuming so much of time. So, they can open new branches in other areas of Rawalpindi and Islamabad to meet the requirements of demand of the consumers by providing convenience to them.

  People of other cities like Lahore, Faisalabad and Karachi also admire the taste and quality of Savour foods when they visit Islamabad and Rawalpindi. So, they can open branches in highly dense above mentioned cities as the growth rate of their brand is seems to be very high.

  It has an opportunity of introducing other product in rice category to meet the demand of vegetarians. For this, they can introduce “Chinese Rice”.

Threats:  Increasing inflation rate.

With the increasing inflation rate, purchasing power of the customers is falling down             which may affect the sales of Savour Foods.

  Increased Sales Tax.Due to increase in tax rates, organizations have to increase their prices to get the profit. With the increase in prices customers diverts and this may also apply in case of savour foods.

  High transportation cost.Petrol prices are increasing day by day. Due to increase in the prices, transportation cost also increases which affect each and every product directly.

  Economic backwardness.Pakistan is a developing country. Economy of Pakistan is not so much good so that there is uncertainty about the future of business.

  Law and order situation.Law and order situation directly affect the whole economy of the particular area. If law and order situations are not so good there is chance of less growth of business activities on case of savour foods.

  Conflict with Capital Development  Authority.Capital Development Authority is the authority which deals with the development affairs of the Capital city Islamabad.Blue area branch of Savour foods is facing conflict of Parking Area and Generator installed area with CDA.

  Changing attitude of customers.Changing attitude of customers directly affect the sales of the product. If attitude and behavior of the customers gets changed towards savour foods, it will tend to decrease in sales.Criteria of Segmentation:

  Possibility of measure  Large enough to earn profit  Stability  Internally homogeneous  Externally heterogeneous

  Responds constantly to a given market stimulusBasis of Segmenting consumer market:

  Geographic segmentation  Demographic segmentation  Psychographic segmentation  Behavioral segmentation

Level of marketing Segmentation: Mass marketing Segment marketing Niche marketing Micro marketing  Local marketing  Individual marketing

Segmentation of “Savour Foods” according to criteria:Segmentation is according to criteria because it is possible to measure, enough to earn profit, stable and have potential customers. Segmentation is necessary for every organization to get more profit. Due to segmentation any organization can easily launch new product in market. In this way organization can get more goodwill too. “Savour Food” is one of the Best success stories in segmentation because they have adopted the best strategies for the segmentation of their products to target their market.Segmentation of “Savour Foods”:Geographic Segmentation:              “Savour Foods” is only located in the twin cities of Rawalpindi and Islamabad. They                               have targeted those areas which are really established. These areas are business hubs and Food streets.

  Blue Area Islamabad  Melody Food Park  Rawalpindi Cricket Stadium  Gordon College Road World Region Or country: It is located in the Rawalpindi and Islamabad (Pakistan) Density: Urban areas are targeted by the Savour foods. City or metro size: Population of Islamabad is 1.2 million (Wikipedia) that is why it

is Mainstream City. Population of Rawalpindi is over 5 million (Wikipedia) that is why it is Major City.

 Climate: Climate of this region is Subtropical. The mean temperature of this area remains 10-50 degree centigrade in 8 months of the year.

       Demographic Segmentation:                Dividing the market into groups based on variables such as age, gender, family life

                cycle, income, occupation, education, religion, race, generation, and nationality.

 Age: Main focus of “Savour Foods” is customers of age group 16-35 and above but their products are also consume able for the children of age of 4 years and above.                                        

 Gender: They target both Male and Female as their customers.

 Family Size: They deal with individual and as well as families having size of 2 and more.

 Income: Main targeted audience of the “Savour Foods” are the who have income level of Rs.15,000 to Rs.60,000.

 Occupation:Savour foods targets the following customers.

  Officials of private sector  Organizations  Small and middle scale  Proprietors/Institutions  Students Religion: As it is Halal Food for all, so there is no concern with religion. People of

every religion are warmly welcomed in Savour foods. Nationality: As it is only situated in twin cities of Pakistan so Pakistani nationals visits

at large and foreigners at very exceptional case.

      Psychographic Segmentation:          Psychographic segmentation divides buyers into different groups based on social                                                      class,  life-style, Or personality characteristics. People in the same demographic           group can have very different in psychographic makeups.

 Social Class: Customers of “Savour Foods” are middle class, Working class, and upper middle class. High class also visits Savour foods sometimes.

 Life-style: People who like pulao, Fast Food and ice-cream are regular customers of the Savour foods. These people look for convenience and comfort.

Behavior Segmentation:        Behavior segmentation divides buyers into groups based on their knowledge,          Attitudes, uses, or responses to a product. Many marketers believes that behavior         Variables are the starting point for building market segments.

 Occasion: people use to dine inn and take away from savour foods on regular occasions as well as special occasions like Iftar parties, Lunch and Dinner parties, and other special occasions like independence day, Eids etc.

 Benefits: “Savour Foods” is providing qualitative and quantitative food with reasonable price. They are providing their food in very less time.

 User status: User of “Savour Foods” includes potential users’ first time users and regular users.

 Loyalty status: Most of the users are loyal with “Savour Foods ”but some are not loyal they only visits savour foods without consent.

 Readiness status: Most of the consumers are aware of quality and quantity of the food given to them with other information.

 Attitude towards Products/Services: Attitude of people toward “Savour Foods” is enthusiastic and positive in most of the cases, but some people also have negative opinion about their services.Target Marketing:Marketing segments reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best. We now look at how companies evaluate and select target segments.

Evaluating market segments: In evaluating different market segments a company observes three main factors:

segment size and growth, segment structural attractiveness, and company objectives and resources.

 Savour foods segment the products according to their size of product, availability of resources and keep in mind the objectives of company. The main segmented products of savour foods are pulao kabab, chicken roost and ice cream. It segmented pulao into ten different products according to size, cost effectiveness, growth and attractiveness. In chicken roost they segment into three products and in ice cream they introduce many flavors and taste. In fast food they give different varieties of burger.

Select target market segments:

 Evaluating different segments, company then decide which and how many segments will target. To achieve this target company chose a large set of buyers or concentrate on small set of buyers. It can be an undifferentiated or differentiated market.

 Savour foods use differentiated marketing strategy. They segmented their pulao into ten different products. In segmentation they focus on size and conveniences like chicken pulao (single) and chicken pulao (single choice) they charge different prices. In chicken pulao (without kabab)   and chicken pulao(lunch box) they segmented using size and packing so it will be convenient for the customers. In ice cream they use different flavor and sizes. 

While analyzing the savour foods with respect to marketing, three (3) basic questions comes in mind that.

 What level of Marketing Savour Foods has adopted? What does that level really means? How to justify the level?

What level of Marketing  Savour Foods has adopted?It is a Core issue that what type of marketing strategy Savour food has adopted which lead it to be the one of the Success stories of the Business world. After analyzing the marketing strategies and levels of Savour foods someone can say that savour food is doing a “Niche Marketing”

What is Niche marketing?“Niche marketing” is the subset of the market of the focused product. It describes the special features of the concerned product to attract the specific and targeted

customers with its price, quality, quantity demographic needs and the of the customers.

How “Savour foods” is doing a “Niche Marketing”?We can say that savour Foods is doing a “Niche Marketing” because their focused product is Pulao Kabab. They do not focus on the charging more and more. They always try to get the “middle Class” customer’s intention by offering the cheap prices with sufficient quantity and good quality.

BCG Matrix:

BCG Stands for:Boston Consulting GroupBoston Consulting Group was the group of different marketing and managing analysts who gave this analytical matrix to understand the Position of the products of entrepreneur to decide about the future of the products that which product should be continued for the future placement in the market and which should not be continued.

BCG Matrix is composed according to following criteria. Market share. Expected future growth.

                    Market share is measured on x-axis.                       Expected Future growth is measured on y-axis.

Terminologies used in BCG Matrix.Following terminologies are used in BCG matrix.

Cash Cows: The product whose market share is high and future expected growth is less comes under the category of Cash Cows. These products are to be sold until they do not become outdated.Stars: The product which comes in the category of high Expected growth rate but do not covers the major portion of market share is called as Stars. Entrepreneur should invest the amount derived from Cash Cows in Stars.Question Marks: The product which have high expected growth rate but very low market share comes under the category of Question Marks. These products are to be devised further.Dogs: dogs carries the products whose market share and expected growth both are very low. These products should be kicked out from market.

BCG Matrix(products according to categories) of Savour foods:Pulao KababFollowing is the product which can be associated to the category of CASH COWS.                                              

ZardaFollowing products may fall in the category of STARS.                                              

Chicken Roast                                         In the category of QUESTION MARKS given product falls.New family deals of fast food.It is positive point for Savour Foods that no product falls under category of DOGS.

Customers’ opinion:Ist customer:One of the customers of “Savour Foods “said to us about Savour Foods that he is a  regular customer of Savour  foods.  He is the employee of the famous private school of Rawalpindi. He said us that he like Savour’s pulao very much,  because it is cheap and the quantity of Pulao is enough to eat and  after eating it the element of hunger do not remain longer and the taste is very awful. He also said  about the quick service of Savour foods. He comes to savour foods regularly, because it is near to his office. He also said us about the fine quality of the rice used in savour’s pulao.On the Question of comparison of the services of Savour Foods in last 5 years he reported that he has felt that Quick service of Savour Foods has been vanishing day by day and the taste too but still it is convenient for me  and i used to visit regularly.He Suggest that  Savour Foods should not diversify their main business of Pulao Kabab by providing fast food because due to lack of concentration on main product they are loosing its worth.

                                                                                Khurram Naeem Siddique                                                Teacher at Asif Public School System                                                                Rawalpindi.                                                2nd Customer:Although I do not like the taste of Pulao available at savour Foods outlets   but it is convenient and near to my office so I visits Savour Foods off and on. Sometimes with my will and sometimes forcefully by my colleagues. People came to Savour Foods because it has a good Brand name in the food  market aand most of the people of Islamabad and Rawalpindi are aware of its name, Location and other Services.   He also said the Savour Foods has droped its taste, quality and quick service from 2 years. At the beginning, the taste and service was awesome since he has been a regular customer but as the time is passing their taste and services level is falling down.He suggest that Savour Foods should try to recover its taste and sevices and it is possible if they apply the TQM(Total Quality Management).                                                                                                Faisal Saleem                                                          Government Employee                                                          Our Opinion as a Conclusion:Since we are also a regular user of the Savour Foods and we have visited Saver Foods Several times we have an opinion about Savour Foods but, our these visits of Savour Foods which were made with the intention of Critical Analysis gave us the exposure of the Segmentation, positioning and Target Marketing more broadly. After having a detailed overview and knowledge about the Savour Foods with respect to the marketing we have concluded that Yes Segmentation of the Savour Foods is proper and according to the market to whom they are addressing. They have created a strong positioning of their brand among their customers. Most of their customers are those who demands such a huge chunk of pulao to eat at reasonable prices with a convenience. And yes, they are providing these expected services of their customers at large scale.   They are also providing a good dining experience is other food providers do not provide at this price. We are satisfied with the Marketing Strategies of the Savour Foods which are discussed in detailed in above. But still there is a chance of adoption of more better Marketing policies in which they can improve their market share by providing a little bit better services and maintaining their quality and taste of Pulao Kabab even it is prepared on very large scale.