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Project Report on

K&Ns

Submitted to
Dr. Tahir Ali
(Chairman, Department of Commerce)
Submitted by
Tazeen Azeem
(M.Com, Final Year)
University of Karachi
March 7, 2014

Acknowledgement
First of all I am grateful to the blessings of Almighty ALLAH who gave me ability to complete
the project in an appropriate manner.I also gratefully acknowledge the immense help of our
respected and extremely encouraging course Instructor, Dr. Tahir Ali, who remained crucial in
the process of preparation of this report. I acknowledge his guidance, help and cooperation,
without his cooperation this project work would not have been possible. He made my concepts
clear about the project as well as about the course Project Management. I also thank the
K&Ns management to provide me the data of interest. I also thank the appreciation and
guidance of my parents who gave me encouragement whenever I faced any difficulty in the way
of academic life and particularly for the accomplishment of this project.

Executive Summary
K&Ns is one of a kind in Pakistan and has come forward with a new perspective about frozen
food in our society. K&Ns has shown sensitivity to the Muslim requirements of halal food
products and introduced its Del Line so that the people have no more doubts and are comfortable
consuming the skinless sausages, cold cuts and smoked meat.
The company implements the marketing strategy with immense skill and understanding about the
Pakistani society and is therefore successful amongst the masses that it targets. The four Ps of
marketing are incorporated without a hitch and the products of Del Line are easy to use, reliable
and easily available with great taste and reasonable prices. It has to be kept in mind that Del Line
products are only aimed towards the social classes A+, A and B and so K&Ns is successful and
quite popular.
Upon conducting a research it was identified that the brand name of K&Ns has become so
strong that advertising on TV is not only the reason for the purchase of the products. It is all
dependent on the marketing strategies that were employed at the time when K&Ns penetrated
the consumer food items market.

Introduction
In todays fast moving world the major issues related to society is the time. This is a factor which
creates hurdles in decision making of consumers to adapt a product according to their needs.
Another factor which contributes towards social setup for behaving in more specific purchases is
the health of general public. According to a research conducted more people were found to be
cautious about contents and taste of the products they consume. They prefer easy to use and
quick to serve products in their meals.
These product are mainly focusing on the working women and the hostilities. The hostilities
require something that is ready to serve in minutes that is less time consuming but still full of
taste and nutritious as they miss the taste of homemade food and the working women cannot get
time to prepare meals, so these product provides them the solution to their problems. But
increasing prices are reducing its demand and shifting consumers to other brand.

Companys background
K&Ns is the founding pillar and beacon for Pakistan poultry industry. Building on years of
poultry expertise, and a commitment to food-safety, K&Ns integrated all poultry production
activities under one umbrella to ensure quality and food-safety by managing and controlling all
stages of production.
The year 1964, Pakistan a young independent nation forging ahead towards a dream: self
sufficiency in food production. Malnutrition remained a major problem and one out of four
children died attaining at the age of five. 80% of ailing children were affected with disease
caused by protein, vitamin and mineral deficiency. Poultry production, the quickest and least
expensive way of filling the protein gap was planned to overcome malnutrition. Backyard
poultry farming had to graduate to a more professional level.
January 1964, a young man, Khalil Sattar, still a college student, had the vision to foresee a need
to establish a poultry farm. His interest led him to start a small broiler farm of 1,000 chicks.
Little had he known this flock was to become the foundation stone of K&Ns.
This was the simple, inspired and nationalistic beginning of K&Ns with a single-minded
objective of providing better nutrition for Health and Happiness of the Nation.

Research Process By K&Ns


Research introduction
Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of man, culture and society, and the use of this stock
of knowledge to devise new applications.
However, the main reason for the research on K&Ns was to get the feedback from the targeted
customers about the specific issue mentioned below.

Problem statement
The problem which is faced by K&Ns currently is difficulty in capturing new target market and
diversification of consumers.

Literature review
Although little research has been done on the influence of K&Ns on the public perception of
purchasing, researchers have investigated how products and their prices contribute to the general
publics behavior. In general the public perception of products is strongly influenced by prices.

Hypothesis
Sales is decreasing due to competitors offerings at low price

Dependent variable:
sales
Independent variables:
low price by competitors

Competitors
1) Simply Sufi (chicken products only)
2) Menu (chicken & sea food)
3) Mon Salwa (chicken & sea food)
4) PK (chicken,beef & mutton products)

Methodology
Descriptive research
Descriptive research is a type of research method that is used when one wants to get information
on the current status of a person or an object. It is used to describe what is in existence in respect
to conditions or variables that are found in a given situation.
In the light of above instructions, it resulted that the people respond in a very positive way to the
products of K&Ns. There is a very high market potential for the products of K&Ns. Through
research it was found that pricing was an issue that needed to be considered.

Sample plan
The sample plan population was divided into mutually exclusive groups such as students,
teachers, business oriented and job oriented people. It was convenience sample as well as
divided mutually
exclusive groups were approached as convenient. We distributed 500
questionnaires among different age groups or segments and 20 among the retailers
(shopkeepers).

Research instrument
Questionnaire was used as the research instrument as they were the easiest way to gather
required information. (See appendix for sample questionnaire)
List of aspects
high price
consumer diversification
competitors
electricity problems

Data resources
Primary data:
1) customers
2) retailers
3) Relationship Sales Managers (RSM)
Secondary data:
contact@KandNs.com
domestic.sales@KandNs.com
http://www.kandns.com

Data Analysis
Frequency Distribution table (consumer questionnaire)
Q#.
1
2
3
4
5
6
7
8
9
10

a
115
190
70
50
315
130
80
310
320
40
1620

b
110
195
100
115
185
250
130
5
104
310
1504

C
90
110
120
100
0
120
150
50
76
125
941

d
95
15
115
120
0
0
140
120
0
20
625

e
90
0
90
125
0
0
0
15
0
5
325

Total
500
500
500
500
500
500
500
500
500
500
5000

d
2
7
5
7
4
0
6
0
0
0
31

e
9
3
1
0
11
0
12
0
0
0
27

Total
20
20
20
20
20
20
20
20
20
20
200

Frequency Distribution table (retailer questionnaire)


Q#.
1
2
3
4
5
6
7
8
9
10

a
0
0
0
1
0
3
0
14
13
2
33

b
4
0
8
3
2
15
1
6
6
16
61

C
5
10
6
9
3
2
2
0
1
2
40

Data analysis of consumer questionnaire


On the bases of prevailing situations 500 questionnaires were filled from the consumers which
very helpful for the verification of the hypothesis and the result is discussed below.

The prices of K&N's


are
very high
high
average

low
very low

Top most competitor


of K&N's
Simply Sufi
Menu
PK
Mon Salwa

K&N's should work


more on their
quality & taste
pricing
strategy
line extention
packaging

Q2: The prices of K&Ns are,


a)
b)
c)
d)
e)

Very high
High
Average
Low
Very low

Explanation: According to the survey the prices of


K&Ns are very high and I need to b curtail.

Q7. The top most competitor of K&Ns is,


a)
b)
c)
d)

Simply Sufi
Menu
PK
Mon Salwa

Explanation: Survey results that the K&Ns is


challenged by PK, therefore it should work more
on its competitive advantage.

Q10. K&Ns should work more on their,


a)
b)
c)
d)
e)

Quality and taste


Pricing strategy
Line extension
Packaging
Availability

Explanation: Prices should be curtail to compete


in the market.

Data analysis of retailer questionnaire


20 questionnaires were filled by retailers to make the research more authentic. The
result of few questions is shown and discussed below,

The most selling frozen


products are of,
Simply Sufi
Menu
PK
on Salwa

Q1 The most selling frozen food products are of,

a)
b)
c)
d)
e)

Sufi
Menu
PK
Mon Salwa
K&Ns

Explanation: K&Ns is the most selling brand.

K&N's

Q6: The prices of K&Ns as comparable to other

The prices of K&N's


comparable to
competitors are,
very high
high
average
low

The demand for K&Ns


may be effected by its
Competitors
prices
quality
availability
packaging

competitors are,
a)
b)
c)
d)
e)

Very high
High
Average
Low
Very low

Explanation: Due to high prices sales is a bit effected


although the target market is highly potential.

Q9: The demand for K&Ns may be effected by its,


a) Competitors
b) Prices
c) Quality
d) Availability
e) Packaging
Explanation: Demand is highly effected by the
increasing number of competitors.

K&Ns should work more


on their,
Quality and taste
pricing strategy
line extention
packaging
availability

Q10. K&Ns should work more on their,

a)
b)
c)
d)
e)

Quality and taste


Pricing strategy
Line extension
Packaging
Availability

Eplanation: K&Ns should work o their pricing


strategy as it is highly effecting to capture new
market/prospects.

Conclusion of the Research


We have got a positive feedback and good response by our targeted market segments. As now a
days time is money even ladies are working in offices so they are in search of products that are a
complete meals for their family and are time saving, with the increase in the business in the
schedules of people the trend to ready to serve meals is also increasing so A product of
K&Ns has a scope in market as K&Ns has the largest market share in ready to cook and ready
to serve products. However, prices are effecting its sales.

Recommendation
K&Ns should work on their pricing strategy due to which the demand is highly effected and
also follow the integrated growth by introducing Beef product line or other product lines to earn
more profit and achieve its targeted sales.

Appendix
A
Secondary data

K&Ns Annual Report


Companys history
K&Ns, a founding pillar and beacon for Pakistans Poultry Industry started in 1964 with a
single minded objective of providing better nutrition for health and happiness of the nation.
Building on years of poultry expertise and commitment to food-safety, K&Ns integrated all
poultry production activities under one umbrella to bring yousafe and healthy chicken by
managing and controlling all stages of production.
Products
K&Ns markets layer and broiler hatching-eggs, layer and broiler, day-old chicks, poultry feed,
processed chicken and ready-to-cook & fully cookedfood.
I selected only the ready to cook category of K&Ns which include Nuggets, Croquettes,
Chicken Tempura, Burger Patties, Kofta, Combo wings, Fun nuggets, Hot Tenders, Chapli
Kabab, Harey Bharey Nuggets and Tender Pops.
Distribution
Products are stored at -21C to maintain freshness. Packed products are moved into K&Ns
sanitized refrigerated trucks for distribution to ensure uncompromising quality control.
K&Ns chicken products are available at K&Ns Chicken Stores and leading retailers and also
delivered to quality and food-safety conscious institutions such as hotels, restaurants, airlines,
clubs and international restaurant chains.
Market share
Market share of K&Ns is almost 70% (on average) in ready to cook food category. At Hyper
Star almost 80% people buy K&Ns products. At CSD almost 60% people buy K&Ns products
and at Macro almost 75% people buy this brand. This is the highest market share and at this time
it is the leading brand in this category.
Where the brand stands?
The brand is growing rapidly day by day due to the customer satisfaction and the product is
according to the customers requirement as well as they are targeting different segments of the
markets like children and the vegetarians.
Positive points of its product
From the customer view point K&Ns is providing healthy food. It is easy to cook especially it
facilitates the working women because they dont have much time to make all those things in

home. They are targeting the children as well through fun nuggets so women are using for their
children lunch. This brand provides the hygienic food to its customer that build trust in the
customer. Moreover the taste of K&Ns food is superior then others. These attributes are
increasing its market share and this brand is growing.
Competitors
Competitors of K&Ns are Menu and Mano salwa. Both of these brands couldnt make its brand
image as strong as K&Ns has. Secondly they are not providing that level of customer
satisfaction that K&Ns is providing.
Target market
The company is targeting different age groups as well as different income groups. Their prices
are normal so even a middle class person can afford it. They are targeting elite upper middle and
middle class. On the age basis, they are targeting children as well as the young people.
Conclusion
K&Ns is a largest selling brand in ready to cook food category. They are focusing more and
more on the fully cooked products for the ease of customers with the special focus on the
hygiene factor. It is the brand that provide value product to its customer. There market starts with
the customers and end with the customer. This is the main reason for their market share and
market growth.

Appendix
B
Sample Questionnaires

Questionnaire(consumer)
We are the students of M.Com Department of Commerce University of Karachi. We are
conducting research on the K&Ns
If you kindly fill out this questionnaire. The information provided by you will be used for
academic purpose only.
Thank You.
Name: _____________________
Designation: _________________
Organization:________________

Q1: The products of K&Ns are,


a)
b)
c)
d)
e)

Excellent
Satisfactory
Average
Unsatisfactory
Poor

Q2: The prices of K&Ns are,


f)
g)
h)
i)
j)

Very high
High
Average
Low
Very low

Q3: The most purchased products of K&Ns are,


a)
b)
c)
d)
e)

K&N's Processed Chicken


Ready-to- Cook Products
Fully Cooked Products
K&N's Deline Products
STOK

Q4: Discounts offered by K&Ns are,


a)
b)
c)
d)
e)

Very high
high
Average
Low
Very low

Q5: The description on packaging is,


a) Sufficient
b) Average
c) Unsufficient
Q6: K&Ns products are mostly used in,
a) Breakfast
b) Lunch
c) Dinner
Q7: The top most competitor of K&Ns is,
e)
f)
g)
h)

Simply Sufi
Menu
PK
Mon Salwa

Q8: Most advertisement is done by,


f)
g)
h)
i)
j)

K&Ns
Simply Sufi
Menu
PK
Mon Salwa

Q9: The availabilty of K&Ns products is,


a) Easy
b) Average
c) Difficult
Q10: K&Ns should work more on their,
f)
g)
h)
i)
j)

Quality and taste


Pricing strategy
Line extension
Packaging
Availability

Questionnaire (retailer)
We are the students of M.Com Department of Commerce University of Karachi. We are
conducting research on the K&Ns
If you kindly fill out this questionnaire. The information provided by you will be used for
academic purpose only.
Thank You.
Name: _____________________
Designation: _________________
Organization:________________

Q1: The most selling frozen food products are of,


k)
l)
m)
n)
o)

Sufi
Menu
PK
Mon Salwa
K&Ns

Q2: K&Ns is sold because of its,


f)
g)
h)
i)
j)

Price
Quantity
Quality & taste
Availability
Packaging

Q3: The most sold products of K&Ns are,


f)
g)
h)
i)
j)

K&N's Processed Chicken


Ready-to- Cook Products
Fully Cooked Products
K&N's Deline Products
STOK

Q4: The top most competitor of K&Ns is,


i)
j)
k)
l)

Sufi
Menu
PK
Mon Salwa

Q5: The most in-store promotional activity is done by,


a)
b)
c)
d)
e)

Sufi
Menu
PK
Mon Salwa
K&Ns

Q6: The prices of K&Ns as comparable to other competitors are,


k)
l)
m)
n)
o)

Very high
High
Average
Low
Very low

Q7: Discounts offered by K&Ns is,


f)
g)
h)
i)
j)

Very good
good
Average
Low
Very low

Q8: Distribution channel of K&Ns is,


a) Efficient
b) Average
c) Inefficient
Q9: The demand for K&Ns may be effected by its,
f)
g)
h)
i)
j)

Competitors
Prices
Quality
Availability
Packaging

Q10: K&Ns should work more on their,


k)
l)
m)
n)
o)

Quality and taste


Pricing strategy
Line extension
Packaging
Availability

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