English Biscuits Manufacturers

English Biscuits Manufacturers - REPORT FOR MARKETING MANAGEMENT

1. REPORT FOR MARKETING MANAGEMENT






INSTRUCTOR
MUKHTAR AHMED KHAN

COURSE
MARKETING MANAGEMENT

Participants
KAREN BRITTO
SEEMA BARKAT
VANNAH PEREIRA
SHABIHA FATIMA AHMED
ABDUL AZIZ AFZAL SIDDIQUI

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Table of Contents

EXECUTIVE SUMMARY & COMPANY’S DESCRIPTION .................................................................................. 3
VISION, MISSION, GOALS & ORGANIZATIONAL STRUCTURE ....................................................................... 4
CHAIN OF COMMAND .......................................................................................................................... 5, 6, 7
SEGMENTATION, HOW DO THEY SEGMENT? TARGET SEGMENTATION ..................................................... 8
BRAND-WISE TARGETING STRATEGIES ........................................................................................................ 9
BRAND POSITIONING & PRICING ............................................................................................................... 10
BRAND PERCEPTION ................................................................................................................................... 11
SWOT ANALYSIS ......................................................................................................................................... 12
COMPETITOR ANALYSIS ............................................................................................................................. 13
CONCLUSION .............................................................................................................................................. 14
RECOMMENDATION .................................................................................................................................. 15

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EXECUTIVE SUMMARY

This report presents the managerial concerns and procedures related to the activities of English Biscuit
Manufacturers (EBM). It has been prepared to explain and understand that how different departments of
the company are working under managerial activities. The ethical standards and rules set out by the
community and the company’s board. It also explains us that how the company’s higher-level
management supports and guides the company on the ethical issues and in planning, decision making,
controlling and leading.
The report explains us that EBM is a biscuit manufacturing company. The company is operating mainly
in Pakistan while also exporting too many other countries. The main office is in Pakistan, so the company
follows the Islamic rules and policies set in the Shariah Compliance Law. This tells us that the culture of
the company is ethical, and it cares for the environment as well as its customers. It tells us that the
company focuses on innovation and tries to introduce new ideas to the industry.
The company from the process of recruiting only makes efforts that people with unethical activities are
never recruited. The company also conducts training sessions for their employees so that the employee
can work well. The company also takes active part in the Corporate Social Responsibility, activities and is
trying to build a healthy relationship with employees.
Even though the we cannot become perfect, and the company, according to our analysis is doing good on
ethical grounds, but there has been listed some recommendations at the end of this report, which would
help in making the internal organization better, leading to better ethical, financial, economic results.
COMPANY’S DESCRIPTION
EBM found its roots in Peek Freans Pakistan Limited, established in Karachi. In 1966, Peek Freans
Pakistan Limited restyled itself as English Biscuit Manufacturers (Private) Limited. It was more than just
production of packaged biscuits; in 1967, EBM began a revolution of quality, nutrition and flavor! With
hard work, excellent services, honesty and strongly integrated business ethics, the imports business grew
consistently. Breaking new ground year after year, EBM pioneered branding and advertising on television
in Pakistan; EBM was also the first to sponsor TV shows. Peek Freans, and the iconic Pied Piper became
a household name with the ‘Listen to the Sound of the Day,’ TV commercial in 1970.
Following are the accomplishments of EBM:
1971: Queen of biscuits, Marie launched.
1973: Peak Freans became a partner in the Football World Cup on Munich.
1976: Launched Butter Puff.
1984: Launched Peanut Pik, Party, and Peanut Pista.
1987: Launched Gluco.
1990: Launched Chocolate chip cookies.
From 2002 till 2015, EBM launched products like Sooper, Rio, Farm House Cookies, Nan Khatai.
A technical breakthrough was made in 2012 when EBM commissioned an 80-meter-long production line;
the longest across Pakistan and Asia at the time.
In 2015 EBM went to the movies, developing and integrating content for Rio and Gluco in collaboration
with Pakistan’s first animated feature film, 3 Bahadur.

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VISION AND MISSION
EBM’s vision and values lie at the heart of everyone working there. They inspire and guide them to the
best possible course of action and, ultimately, the best outcomes. Simple yet powerful, EMB’s vision and
values strengthen the company and its practices. To be the leading food company, delighting and
nourishing their consumers with superior products and services; while leading sales, shares and profits,
thus allowing their people, community and stakeholders to succeed.
Mission is to strive for highly responsible management, highest standards of hygiene, protect and
preserve the environment.
GOALS
Every company has their strategic and financial goals. Similarly, EBM also has their goals.
1. Strategic Goals

▪ From the past 50 years in the area of baking by holding 51% market share.
▪ To compete with their competitor “Continental Biscuits”.
▪ Diversifying into cakes and other products.
▪ To strengthen their cake’s portfolio by launching new variants.
▪ Being Contiguous for different situations.

2. Financial Goal

▪ To be the 50-billion-rupee company in future.
ORGANIZATIONAL STRUCTURE
EBM is decentralized organization where limits of authority have been assigned to respective department.
Every department is autonomous to take decision regarding their department so that could lead to achieve
organizational objective. EBM is decentralized organization in which most decisions are made by mid-
level or lower-level managers, rather than being made centrally by the head of the company. It's the
opposite of a centralized organization, in which all decisions are made at the top.
At EMB, Employees are empowered by having more autonomy to make their own decisions, giving them
a sense of importance and making them feel as if they have more input in the direction of the organization.
It also allows them to make better use of the knowledge and experience they have gained and implement
some of their own ideas. Empowered employees can cut the "red tape" of an organization by taking the
initiative to get the job done with a minimum of managerial approvals.
Therefore, EBM has 2,500 employees in the various departments such as Human Resource, Finance,
Information Technology, Procurement, Administration, Marketing, Customer Service and Supply Chain.

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CHAIN OF COMMAND


Dr. Zeelaf Munir – Managing Director & CEO


Saadia Naveed- Deputy Managing Director


Abdul Ghaffar Katiya- Research and Development

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Zahid Iqbal- Sales, Trade Marketing and Export

Ayesha Janjua – Head of Marketing

Noman. A Lutfi- Group GM Integrated Supply Chain

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Abdul Wahid- Director Finance

Ashar Zahid- Head of Information Technology

Col. Usman Bhatti- Administration

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SEGMENTATION
EBM segmented their products and verity of brands which cater almost all the market segments they
consist of;
1. Sooper
2. Rio
3. Glucose
4. Nan Khatai
5. Butter puff
6. Sandwich
7. Chocolicious
8. Click
9. Saltish
10. Farmhouse cookies

HOW DO THEY SEGMENT?
EBM segments its products in many ways. Their portfolio is divided into seven sub-segments these
include; plain, sweet, cream, energy, crackers, value-added, zeera and premium. Each brand is placed in
its respective category based on the product type. Each type of biscuit is segmented according to their
class and taste.
• Sooper and Marie is part of the plain-sweet segment.
• RIO and Sandwiches in the cream.
• Gluco and whole wheat slices in the energy.
• Butterpuff and Saltish in crackers.
• Peanut Pik, Peanut Pista and Party in the value-added range.
• Click is in the zeera segment.
• Farmhouse cookies is placed in the premium segment.
TARGET SEGMENTATION
All consumers enjoy biscuits as a favorite snack irrespective of their age, gender, SEC strata etc., however
their preferences on brands differ. Young individuals would have a strong preference of sweet biscuits
like Rio. Individual in their mid-40 would prefer a biscuit that is more savory such as Saltish. Based on
the preferences of each group, EBM has a wide portfolio of 14 brands each designed to cater the unique
taste palettes of individuals from different groups. Each brand thus has a unique personality and image,
which the TG can easily associate with.
BRAND-WISE TARGETING STRATEGIES
Evaluate potential and commercial attractiveness of each segments.

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1. Plain Sweets
It consists of 2 brands of biscuits. Sooper cookies and Marie.
They basically target youth and adults. They Generates 50% of the firm’s revenue. Rewarded as Best-
selling biscuit since 2007. More than 20 million Sooper cookies are consumed every day. Sooper Hai
Zindagi is its slogan. One of the problems with Sooper is that with its wide scope it is very difficult to
hone on a specific target group and this makes the creative brief very hard. You must cater to rural,
regional, urban and so on, and the second you try to please everyone, you cannot do justice to the brand.
MARIE the queen of biscuits. Delighting its customers since 1968.
2. Cream
It consists of 2 brands of biscuits. Rio and Sandwich biscuit.
RIO is the largest selling sandwich biscuit in Pakistan. The brand is popular among children. Sandwiches
Lemon sandwich was launched in 1973 since then it has become an integral part of peak Freans.
3. Premium
It consists of 3 brands of biscuits. Farm house, Gluco and Whole Wheat Slice.
Farm house biscuits are targeting to differentiated marketing. Main targets based on demographics
(Income and life-cycle stage). It is targeted to consumers who have daily income more than Rs1000.
Gluco is part of EBM’s portfolio for more than 40 years. Mainly targeted to kids of age between 8 to 12.
It is positioned as energy rich biscuit.
Whole Wheat Slices are with their high fiber content, help to keep you active and healthy throughout the
day. These light, crunchy biscuits are not just a great-tasting snack, they also provide amazing health
benefits; Whole Wheat Slices help reduce cholesterol, control weight and regulate the digestive system.
4. Nan-Khatai
English Biscuit Manufactures (EBM) and Continental Biscuits Limited (CBL) have ventured into a niche
market segment. Re-branding traditional recipes. It is positioned as, “warm afternoons of your childhood”.
5. Chocolate
Chocolicious. It targets the consumers group of kids and teens.
6. Crackers
It includes three brands. Butter puff, Saltish and Click.
Butterpuff attracts a mature and modern customer. Whereas Saltish remains Peak Freans classic since
1972. Click launched in 1984, it is the first biscuit by Peak Freans with a touch of Cumming seed in it.

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7. Value Added Products
It has three brands. Peanut Pik, Peanut Pista and Party.
Peanut Pik main aim was to penetrate in market. Firstly, consumed by toddlers and children and after that
adults also start consuming it. Peanut Pista is the combination of delectable peanuts and Pistachios is
being loved by the consumers since 1983. Party product is delivering the delicious dried fruit in a biscuit
since 1989.
BRAND POSITIONING
Brand Positioning is an act of designing a company’s offering and image to occupy a distinctive place in
the minds of the targeted customers. It communicates similarities and differences between their brand and
its competitors. Similarly, EBM Offers the largest variety in tastes and textures. EBM promise
wholesomeness and unique taste. its competitors incudes Coronet Foods (Private) Ltd, Continental
Biscuits (LU), Montgomery Biscuits, Silver lake and Mehta Industry (Krunchi). It has attributes that
distinguish EBM brands from its competitors.
Potential points of difference (POD) of EBM are following:
a) EBM biscuits meets international standards of quality and hygiene.
b) EBM is the only biscuit company in Pakistan to have achieved recognized international
certifications pertaining to quality control, environmental management system and human
resources management such as ISO 9001:2000, ISO 14001:2004, ISO 22000 certifications and
IIP (Investors in People) Recognition.
c) Peek Freans pied piper logo continues to be the trademark of the company.
d) Variety of options in taste and texture.
e) Peek Freans brand has recently been given the recognition of the internationally acclaimed Super
brands status.
f) EBM is also the only food company to have been awarded the Environmental Excellence Award
for the last six successive years since 2004.
g) EBM also has the distinction of being the only biscuit company in Pakistan to have received the
ISO 27001:2005 certification pertaining to Information Security Management Systems.
h) The EBM Centre of Excellence was established at a cost exceeding Rs 20 million, to make
available an international level research and development facility for students of food technology,
nutrition, bio-chemistry and other related scientific disciplines
i) The EBM Centre of Excellence is the only one of its kind in the country that not only helps in
developing human resources in Pakistan but takes the lead in ground-breaking researches
pertaining to food grains.
PRICING
Price is the amount of money charged for a product or service, or the sum of the values that consumers
exchange for the benefits of having or using the product or service. Also, at EBM the price does play vital
part in the product mix it offers its Consumers. This is because of the high competition EBM is facing
with LU that is called competitive Price Strategy. Competitive pricing is a pricing strategy in which the

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competitors’ prices are taken into consideration when setting a price of same or similar products. The
focus is on competition-driven prices rather than production costs and overheads. Competitors’ behaviors
play a critical role in determining prices. With a competitive pricing strategy, we can identify the best
prices that are logically within the market context in which we can operate and improve our profit
margins. Therefore, EBM decides the right price for the right product, in turn maximize its profits. Going
over the various brands EBM offers, we see that different brands have different objectives according to
which they are being priced.

EBM had adopted the market penetration strategy. Market penetration pricing is a pricing strategy that
sets a low initial price for a product. The goal is to quickly attract new customers based on the low cost.
The strategy is most effective for increasing market share and sales volume while discouraging
competition. We can further divide the pricing into four major and basic categories by Price as follows:
i. Family Pack Rs. 35.00 to 40.00
ii. Half Roll Rs. 17.00 to 20.00
iii. Snack Price Rs. 10.00
iv. Ticky Packs Rs. 5.00
BRAND PERCEPTION
A brand is just a perception, and perceptions attune to reality. Brands may create trends or emulate them.
Yet, as the cycle of life goes, it is extremely important for brands to match the pace of change otherwise
they get left behind. For EBM, the brands are EBM and the Pied Piper logo. This is the image the
Company wants to build in the minds of the consumers. EBM desires to maintain consumer loyalty and
these brands are adding value to EBM’s products by making the Company’s product line a member of a
family under these brands.

The Biscuit industry is divided into different product categories and varieties that are catered to suit
different consumers with different taste. New product varieties were introduced such as, in 2002, Sooper
became the number one selling biscuit across Pakistan and EBM has not looked back since then. In
2013, sales for Sooper alone crossed the Rs.10 billion revenue. Communication campaigns such as,
“Maama Sooper” and “Sab sey aagay sab sey ooper Peek Freans Sooper” have received accolades from
marketers and consumers alike. In 2004, there was a growth in soft and sweet plain biscuits segment
which was primarily dominated by Sooper and Bakeri.

Different product categories cater to different types of consumers. Adults prefer salty biscuits whereas the
children prefer cream filling and glucose biscuit.

The Peek Freans Pied Piper today is the most popular icon in the industry leading biscuit lovers to
experience one superb product after another. The brand signifies "trust, confidence and wholesomeness"
for consumers. Peek Freans biscuits are known throughout Pakistan and abroad for their excellent quality
and taste.

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SWOT
SWOT is abbreviation of Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses
are internal to the company. These are such things which can be controlled by EBM to some extent and
can change to a certain extent as well. Before positioning the product in the market. It is important for
EBM to make swot analysis. This is will help Marketer to identify the threats that exist in the market and
will also help determine opportunities which will bring growth, stability in the market along with
sustainability to some level. It is essential for the marketers to analyze simple but useful framework for
determining EBM's competitors. It helps to focus on strengths, minimize threats, and take the greatest
possible advantage of opportunities available.
Threats
▪ The entry and exit barrier both are high in EBM as if they planned to leave the market, their
assets will be hardly converted in the form of liquid cash which could be problematic for EBM.
▪ Local bakery biscuits which are locally manufactured are being sold in many different areas and
since they are economical, people prefer to buy those biscuits, such as domestic area bakeries are
competitors of EBM.
▪ Bargaining Power of Customer is having significant importance as there are many competitors
exist in the market. Consumer can easily switch to other biscuits if by the time they find it even
little expensive.
Opportunities
▪ Enhancing the distribution coverage can bring more opportunities in the markets in terms of
contacts.
▪ EBM reflects an image of family brand. Customers like to buy it on different family occasions as
well as whenever they shop keeping their family’s needs in mind.
▪ EBM has huge opportunity if they want to concentrate more in the kids brand. Since it is already
famous among kids, therefore introducing any new brand would not be so problematic for EBM.
Strengths
▪ EBM has a strong wide range of product line.
▪ EBM has a very wider distribution network in urban as well as rural areas which results in good
marketing network.
▪ EBM believes in Continuous Development Process, so they keep bringing innovation in their
products.
Weaknesses
▪ Less promotional activities and giving advertisement for the products which can bring a huge
profit such as Peanut Pick.
▪ Entire products of EBM do carry a sort of similarity among products. They have not introduced a
big change in the product line in terms of innovation.

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▪ Appropriate training of staff is required, and some advanced technology could result better
performance over the period.
COMPETITOR ANALYSIS
Although EBM has a major market share but still there are number of small competitors which still exist
in the market and compete with English Biscuit Manufacturers such as Ismail Industries which work
under the name of Biscony and Candyland and continental biscuits which work under the name of LU
biscuits which offers 5-6 different biscuits in the market.
These competitors are competing with EBM on customized packaging and on competitive pricing. There
is not much difference in their prices, which is an alarming condition for EBM. Other competitors’
biscuits such as Rio also gains a good market share. Other small biscuit company also trying to capture
the market share by introducing new and innovative products. If we investigate current market situation
competitors of EBM are not currently able to beat the market but they are consistently trying to replicate
and replacing the EBM brand by identifying the taste of the people specially of kids. Such as strong
Market competitors trying to compete EBM by replacing its brand by their brand such as Sooper biscuit
has been replaced by "Bakery" with three additional and one sub brands. Which means they are not just
trying to demolish their market positioning but also offering variety in a product which add value into
their product.

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CONCLUSION
After studying report, we conclude that EBM found its roots in Peek Freans Pakistan Limited, established
in Karachi. In 1966, Peek Freans Pakistan Limited restyled itself as English Biscuit Manufacturers
(Private) Limited. EBM’s products line includes Marie, Butter Puff, Peanut Pik, Party, Peanut Pista,
Gluco, Chocolate chip cookies, Sooper, Rio, Farm House Cookies and Nan Khatai.
Organizational structure assists to know about organizational decisions and philosophy. Decentralized
organizational structure is followed at EBM. They believe that empowered employees are having more
autonomy to make their own decisions, giving them a sense of importance and making them feel as if
they have more input in the direction of the organization. EBM deals with 2,500 employees in the
multiple departments. For instance, Human Resource, Finance, Information Technology, Procurement,
Administration, Marketing, Customer Service and Supply Chain.
Segmentation is vital part of business that associated with huge consumers. EBM segments its products in
many ways. Their portfolio is divided into seven sub-segments these include; plain, sweet, cream, energy,
crackers, value-added, zeera and premium. Each brand is placed in its respective category based on the
product type. Their product types include Plain Sweets, Cream, Premium, Nan-Khatai, Chocolates,
Crackers.
Brand positioning defines Company’s image in market amongst customers. EMB communicates
similarities and differences between their brand and its competitors. Similarly, EBM Offers the largest
variety in tastes and textures. EBM promise wholesomeness and unique taste. its competitors incudes
Coronet Foods (Private) Ltd, Continental Biscuits (LU), Montgomery Biscuits, Silver lake and Mehta
Industry (Krunchi). EBM has achieved various international certificates of hygiene manufacturing process
and recognition of ISO certified as well.
The only thing that intake money into Company is revenue. Revenue could maximize by setting effective
price strategies. EBM is facing high competition with LU so EBM must be careful while setting product
price that is called competitive Price Strategy. Competitive pricing is a pricing strategy in which the
competitors’ prices are taken into consideration when setting a price of same or similar products.
SWOT analysis is big tool of Company to identify its potential properties and various possessed values
need be updated and rectified. It will help EBM to identify threats that exist in the market and will also
help to determine opportunities which will bring growth, stability in the EBM along with sustainability to
some level. It is essential for the marketers to analyze simple but useful framework for determining
EBM's competitors. Threats and opportunities consist of biscuits which are locally manufactured are
being sold in many different areas and opportunity is in enhancing the distribution coverage. It can bring
more business grow in the market due to having huge contacts.
Notwithstanding that EBM possesses a major market share but still there are few competitors that still
exist in the market and compete with English Biscuit Manufacturers such as Ismail Industries which work
under the name of Biscony and Candyland and continental biscuits which work under the name of LU
biscuits which offers 5-6 different biscuits in the market.

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RECOMMENDATION
Existence of deficiency does not mean that entity is incompetent, but it requires some time to get
perfection. Recommendation can reduce deficiencies and enhance competency. The recommendations
section of any report is important because it calls people to action based on the evidence that has been
gathered and analyzed in the report. It needs to be actionable, specific and make sense as a solution to the
problems detailed in the report. While reviewing EBM’s policies and strategies, we found few concerns
that required to be presented as suggestion.
a) Biscuits which are locally manufactured are being sold in both privilege and less privileged areas
as they are economical, people prefer to buy those biscuits, such as domestic area bakeries are
competitors of EBM. We would like to recommend EBM not to increase price because it’ll lead
to lose market share and consumer loyalty as well.

b) As they have large inter-connected network of distributors, so they can easily capture the market
share in rural area. We can gain more revenue by creating additional customers in less privileged
area and competitor’s strategies are not indicating that they are working on the same context.

c) There is less advertisement in social, print and electronic media of EBM’s product. Although,
EBM has an adequate brand perception but to keep stable and remain constant in the leading
position a brand needs to be marketed and advertised more.

d) As EBM is multinational manufacturer of biscuits, so they need to deal with multiple segments
such as different countries, religion, nations and cultures etc. For India, they need to manufacture
biscuits without egg because there are millions of people who are vegetarian and don’t eat eggs,
so they like to eat without egg with almond milk. This product should be in the unique packaging
indicating features of product so that it could be differentiated from competitors in India.

e) Biscuits that are being manufactured for western countries, it requires to modify packaging.
Western people don’t like plastic wrapper that covered biscuits because they have economy
friendly environment. We suggest EBM to change their packaging in red ribbon box packaging
although it is not suitable for domestic purpose due to competitive price strategy but in Western
countries it is feasible to make biscuits in more attractive packaging.