A PROJECT ON

“ MARKETING MIX OF FORTUNE COOKIE (Biscuits)”

SUBMITTED BY:

VIVEK SHARMA

(MBA-GENERAL) (C)

Roll No-173

CERTIFICATE

I hereby declare that this work of “MARKETING MIX OF FORTUNE COOKIE ” is my own work and to the best of my knowledge. It contains no materials previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any degree or diploma at any other education institute, except where due acknowledgment, is made in the work.

SIGNATURE:DATE:

COMPANY PROFILE

The SALVEO FOODS Company Limited, in Latin known as HEALTH is one of the newest established commercial bakeries in the India. The company strives to achieve highest quality standards in its sphere of operation.

SALVEO FOODS started their business in 2009 from the major cities of New Delhi, Pune and Mumbai and fo r the past 4 years our company has been producing JAM’s:

KIWI PINEAPPLE MIXED FRUIT

Now it is coming up with its COOKIES known as FORTUNE COOKIE.

Within this short span of time we have gained a good word of mouth for our quality products which we have been producing according to the market likings. Now we are about to launch a new innovative, mouth watering, and new unique product in the market which is currently not available called : “FORTUNE COOKIE”

SALVEO FOODS Company Limited with an aim to provide quality biscuits (cookies) and to enlarge its business all over Eastern India . Its head-quarter is in pune.

MARKETINGMarketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others or otherwise it is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.

MARKETING STRATEGYMarketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts. It is the marketing approach to accomplish the bread objective of the marketing approach to accomplish the bread objective of the marketing plan.

The various process of marketing strategy is given below:

1. Selecting largest markets segmentation2. Positioning3. Product4. Price5. Place6. Promotion7. Research and development8. Marketing research

1) MARKET SEGMENTATION AND SELECTING TARGET MARKET :

It is an effort to increase a company's precision marketing. The starting point of any segmentation discussion is mass marketing. In mass marketing, the seller engaged in the mass production, mass distribution and mass promotion of one product for all buyers. Market segment consists of a large identifiable group within a market with similar wants, purchasing power geographical location, buying attitudes or buying habit. It is an approach midway between mass marketing and individual marketing. Through this the choice of distribution channels, and communication channels become much easier. The researchers try to form segments by looking at consumer characteristics; geographic, demographic, and psychographic. After segmenting the market then target market selected. 

2) POSITIONING: The positioning is a creative exercise done with an existing product. The

well known products generally hold a distinctive position in consumer's

minds. The positioning requires that every tangible aspect of  product, price, place and promotion must support the chosen positioning strategy. Company should develop a unique selling proposition (USP) for each brand and stick to it, PPL consistently promotes its DAP fertilizer by Higher yield at lower cost. As companies increase the number of claims for their brand, they risk disbelief and a loss of clear positioning. In general a company must avoid four major positioning errors. Those are under positioning over positioning, confused positioning and doubtful positioning.

3) PRODUCT:A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places, properties, organizations, information and ideas. The company gives more importance in quality, packaging, services etc. to satisfy the customers. The products has it's life cycle. The product strategies are modified in different stages of product life cycle.

4) PRICE:It is the most important aspect in company's point of view. Price of the product will be decided by the company according to the competitor's price.

5) PLACE:This plays a major role in the entire marketing system. the company emphasis on it's distribution network. Proper distribution network gives proper availability of the product.

6) PROMOTION:Promotion is the one of the major aspects in marketing strategies. By adopting various promotional activities the company create strong brand image. It also helps in increasing the brand awareness. It includes advertising, sales promotions and public relations etc.

7) RESEARCH AND DEVELOPMENT:After testing, the new product manager must develop a preliminary marketing strategy plan for introducing the new product in to the market. The plan consists of three parts. The first part describes the target market's size, structure and behavior. The second part outlines the planned price, distribution strategy and marketing budget for the first year. The third part of the development describes the long run sales and profit goals and marketing mix strategy over time.

8) MARKETING RESEARCH:Marketing research is the collection and interpretation of facts that help marketing management to get products more effectively into the hands of consumers, Marketing research encompasses all information pertinent to this task, all the appropriate technique.

MARKETING PROCESS OF THE COMPANY

MARKETING ORGANIZATION DEPARTMENT STRUCTURE

COMPETITOR ANALYSIS

As we belong to a biscuit market there are many competitors in the market. Each with a unique set of qualities and promotional strategies. The main competitors in the market are:-

1. Parle G

Parle has been one of the leading biscuit brands in India for the last 8 decades. Parle-G is reputed to enjoy the most sales among all biscuit brands in the world. Its biscuits offer a fantastic combination of quality, taste, and nutrition. Parle biscuits are available even in faraway villages.

2. Britannia

Based in Bangalore Britannia Industries Ltd is reputed as being one of the top biscuit brands in India. The company was established way back in 1892 and till today has managed to maintain a distinctive position in the Indian biscuit industry specially with its most popular brand called Tiger.

3. Priya Gold

Priya Gold is a part of Surya Foods & Agro Ltd that was established during November 1992. Its commercial operations, which included selling and making biscuits under the brand name Priya Gold started during October 1993.

4. Anmol

Anmol Biscuits is especially popular in eastern and northern India. It has a couple of top class production units at Noida and Dankuni in West Bengal.

5. Cremica

CREMICA is one of the most prominent biscuit brands in northern India. Its products are primarily available in four categories – crackers, cookies, cream biscuits, and glucose biscuits. The company is setting up a new plant in Himachal Pradesh, which is expected to have a capacity of 5 thousand tons on a monthly basis. This will be a fully automated plant and is supposed to be one of the very best in its kind in the country.

6. Sunfeast

Sunfeast is the biscuit brand of ITC and was initiated during July 2003. To start with the brand dealt with glucose, Marie, and cream biscuits.

The Product Life CycleA new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:

      

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:

Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained.

Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs.

Distribution is selective until consumers show acceptance of the product.

Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

Growth Stage

In the growth stage, the firm seeks to build brand preference and increase market share.

Product quality is maintained and additional features and support services may be added.

Pricing is maintained as the firm enjoys increasing demand with little competition.

Distribution channels are added as demand increases and customers accept the product.

Promotion is aimed at a broader audience.

Maturity Stage

At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

Product features may be enhanced to differentiate the product from that of competitors.

Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be

offered to encourage preference over competing products. Promotion emphasizes product differentiation.

Decline Stage

As sales decline, the firm has several options:

Maintain the product, possibly rejuvenating it by adding new features and finding new uses.

Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment.

Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

MARKETING MIX

1. Product:

This is the “product” that will fulfill the needs of your potential customers and needs to be defined really well in terms of the core attributes and also in terms of extended attributes. If your product design is faulty, in terms of fulfilling the expectations of your customers in terms of core and extended attributes, every marketing strategy will fail. The attributes of the product, the attributes offered by competing products and substitutes, are important in estimating the competitive scenario for the strategy formulation, especially when the attributes in question are intangible.

2. Price: has a lot of impact on the service buyer’s satisfaction level. Often, paying a higher price for information services makes a customer more satisfied. It is important to note that information services being all the more intangible, price is often considered a proxy for quality and vice-versa, and quality is a key determinant of acceptance of any information service. The bundling strategy undertaken during pricing for the attributes plays a key role in the consumption decision making process.

3. Place: often offers a relatively lower value (utility) to the customer of information services. However, for consulting services, consultants may need to provide physical evidence, by visiting the consumer’s “place”.

4. Promotion: plays a key role in the perception the possible target audience may have about your service. There has to be a fit between the promotion and the positioning. Promotion leads to service (brand) recognition and further establishes a proxy to evaluate quality of services based by potential customers. Where exactly you are promoting your offering creates a major impact on the brand and quality perception of the offering.

5. People: are crucial in service delivery when the offering is intangible. Since the actual service provider is often not visible, creating artifacts through photos of the experts creates the element

of trust. Consumers prefer to see a “human face” in the email contact details rather than a blank space or an emoticon.

6. Processes: are important to deliver a quality service. Information services being intangible, processes become all the more crucial to ensure standards are met with. Process mapping ensures that your service is perceived as being dependable by your target segment. It is of utmost importance, how fast the consumer’s issues get redressed, which directly impacts the customer’s satisfaction with the service and impacts the “Customer’s Network Value”. Not only attending a concern is important, but how quickly, effectively and efficiently is the consumer’s concerns are getting addressed and closed, plays a major role in the management of the relationship.

7. Physical evidence: majorly affects the customer’s satisfaction but in case of information services, it plays a dicey role. Since information services are intangible, customers depend on other cues to judge the quality of the offering. Factors such as accreditation, stamps, and seals create trust in the minds of the consumer.

MARKETING STRATEGY Marketing is not geometry or a fixed system of concept. Rather marketing is one of the dynamic fields within the management arena. The market face continually a new challenge everyday and companies must respond to it positively. Therefore it is not surprising that new market idea keep surfacing to meet new market place challenges. The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through market strategy. Following strategies adopted by the organization.

  A strong quality of the product and customer satisfaction:

Customers always believe in good quality product. In my project, I found that in percentage term more people is quality conscious and not price conscious. Customer satisfaction is very important part of the organization that at any cost they have to fulfill.

  A growing relationship with customer and customer retention:

Nowadays a good relation with customer is very important for organization. Sale is totally depending on the relation with the customers. Customer's retention is also a major aspect for growing business. It means keep the old customer and try to make new customer.

Focus on competitors activity: Every organization should be careful about it's competitors step, because they can disturb the growing sales process of the organization.

  A growing emphasis on global thinking and local marketing

planning:Companies are increasing by pursuing market beyond their borders. When they enter other countries they must follow the tradition of that country and also they make plan for local market that which type of product has more demand and how can it run in the market.

  Promotional Strategy:

Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. So on the basis of marketing strategy of organization runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization.

COMPARISON WITH COMPETITORS

Generally all organizations have competitors in the market. A particular organization always comprises with other same business and according to market share we clarify the brand of product is giving more challenge to my product.

I found many products, which can be compared with FORTUNE COOKIE. As a conclusion I found that particularly in my provided area FORTUNE COOKIE is really doing well and its performance is on surprising level. Their FORTUNE COOKIE got good repo position and main competitor is BRITANNIA with the second position.

Except these two branches so many brand is as a competitor of FORTUNE COOKIE and they are covering some parts of markets.

These brands are:PARLE-G, BRITANNIA, SUNFEAST & PRIYAGOLD.

FORTUNE COOKIE is basically providing good quality biscuits but Britannia is not only providing good quality but also providing small chocolate with small pack of biscuits. Parle-G has good taste for especially for children.

CORRELATING ALL THE P’s WITH THE PRODUCT

1. PRODUCT:-The product is launched to cover a large mass of population in India. It comes in two variants:

100gm pack 220gm pack

The packaging is done in a “c” shape package.The cookie inside it also the same shape.First ever in its kind.Two flavours : chocolate & strawberry.

2. PRICE:- The pricing of the product is basically done on three basis

Quality Based – When the pricing is done according to the quality offered with the product i.e higher the price charged for high quality product and lower the price charged for low quality product.

Cost Based – When pricing is done according to the price incurred in manufacturing the product i.e the total cost incurred on raw material, advertising, packaging, promotion etc. is all summed up and finally the price of the product is decided.

Competition Based – When pricing is done according to the price of competitors price prevailing in the market.

The product will be one of the best quality product that will be available in the market. The Pricing is done as follows:-

The small 100gm packet is of 12 RS.

The other one of 220gm packet is of 25 RS.

3. PROMOTION:- The Promotion of the product is decided to be done through following ways –

• TV Advertisements• Advertisement campaigns in East India & some parts of north

India• Free sample distributions in Delhi NCR• Newspaper Advertisements• Social Media (Facebook)

4. PLACE:-The demographic region selected or targeted is Eastern India, Delhi and NCR region for sale of the product as there is more demand for cookies in these areas.

5. PACKAGING :Packaging plays an important role as a medium in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups.Attractive packaging attracts customers.

BRAND AMBASSADOR OF THE COMPANY

Being the future of the bollywood , Ranveer singh will be the ambassador.He is just like fortune cookie crispy and chocolatey.

DISTRIBUTION CHANNEL

In Biscuit Industry, where flow of goods, matters a lot, it is must to consider the following points very carefully:

  Selection of channels for distribution

Warehousing and Transport

Operational Research

Logistic Mix