Airport Campus

Student’s Name & SYED HASNAIN /

ID: 10561
Fundamentals of
Subject: Marketing Submission Day: Friday
Submission Date: 12thof June,
Instructor: Ather Qadeer 2020
Submission Time: 06.00 PM
Program: BBA (Before)
Section: Tuesday Max. marks: 40

Department of Business Administration

Final Exam (Take Home) – Spring 2020

Instructions:

1. Read and attempt all the questions carefully.

2. All questions carry Equal Marks.
3. Organize your work clearly, neatly, and legibly with page numbers in footer.
4. Write answer to each of the questions is mentioned with questions
5. You are not allowed to change the sequence of questions or any part.
6. This exam will test your ability to examine, explain, modify or develop concepts
discussed in class.
7. There are two case studies. Attempt all questions.
8. Exam answers will also be checked through Turnitin for originality.
9. Do not share your answer with any classmate or member. Otherwise, you will be
penalized by deduction in your marks.
10. The total marks for the final exam are 40 marks.
11. We have extended the duration of the exam to give you time to download the
paper, write your answers and upload them.
12. Each student has to submit complete question paper with answers on a Word
Document and submit the soft copy through VLE.
13. Your answer should be typed, double-spaced on standard-sized paper A4. (8.27″ x
11.69″) with 1″ Normal margins on all sides.
14. You should use a clear font that is highly readable; 12 pt. Times New Roman
font.

_________________
Instructor's Signature
CASE NO 1 (25 Marks)

AHMED FOODS –

Brief history -

One of the pioneers of food industry in Pakistan Ahmed foods started their business way
back in the 50’s on a small scale. They were manufacturers of traditional sweets (MITHAI).
They owned a manufacturing unit in the SITE area – Karachi and initially that was their
selling outlet as well. The owner Syed ZamiruddinAhmed who hailed from Delhi, realized
there was a good market for traditional sweets provided it was packed and presented
nicely. He took the initiative and Ahmed foods marketed tin packed HABSHI HALWA,
SOHAN HALWA & KARACHI HALWA along with other variety of traditional sub-continental
sweets. The launching of tin packed sweets proved a great success and by the start of the
60’s Ahmed foods had become a fairly renowned name throughout the country. The only
competitor they had in tin packed sweets was FRESHWELL SWEETS.

Encouraged by the initial success Ahmed foods decided to diversify the product range.
They introduced Ahmed JAMS, JELLIES, KETCHUP, and SQUASHES & ACHAR backed by
strong advertising on both print and electronic media. There were already two well
established companies (SHEZAN and MITCHELLS) who were manufacturing and marketing
almost the same range of products. The management of Ahmed foods emphasized on
quality and within a short span of time Ahmed foods had become a force to reckon with
and they were giving a very tough time to Shezan and Mitchells. Ahmed foods further
diversified their product range when they decided to compete with the bestselling local
brand ROOH AFZA in the red syrup category by introducing NAURUS. The marketing
campaign of Naurus was really impressive especially the TV commercial with a catchy
jingle (bhoolnajanaphir papa Naurus le kargharaana) which was very popular and on every
one’s lips. Naurus was making its presence felt in the market and was a close runner
challenging the dominance of ROOH AFZA.

By the end of the 70’s Ahmed foods were not only confined within the local boundaries,
they were into the Middle East as well as England. The marketing and promotional
strategies of Ahmed Foods were also impressive. The Jingle of AHMED MANGO CHUTNI
was repeatedly aired on Pakistan television networks and Radio Pakistan commercial
service. One of their major competitors Shezan were passing through a lean phase in the
consumer market due to an issue pertaining to religion but their export & institutional
business was good.

The emergence of National Foods –

The year 1970 witnessed the emergence of National foods owned by Mr. WAQAR HASAN,
who happens to be a former test cricketer of Pakistan in its pioneering years. National
foods started out very systematically and were destined to become the market leaders in
future. However Ahmed foods despite increasing competition were still a force to reckon
with. Their exports as well as local businesses were thriving.
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Beginning of the fall -

The slump in their business started when its founder Zamiruddin Ahmed passed away in
1988. He was the master mind behind all their successes. He had controlled the
organization in a very autocratic and centralized manner. He was one and the only
authority. From production and finance to selling and marketing his word was taken as
law. Since Ahmed was a family concern his sons (ZAFAR & ZIA) took charge of the
organization. But they were far behind their father in business acumen and administrative
skills. Zamiruddin Ahmed had resisted the pressure of the workers and never allowed a
labor union in Ahmed foods. But his sons couldn’t with stand the pressure of the workers
and succumbed to their demands. For the first time since its inception a labor union was
formed in Ahmed foods in the early 90’s. From that point onwards the management
became weaker and employees gained power.

THE COLD WAR& THE SPLIT -

To make the matters worse a cold war started between the two brothers. Both of whom
wanted complete autonomy and dominance over the other. Due to internal rifts and lack
of marketing business began to shrink. Differences between the two brothers developed
to an extent that ultimately they parted ways. Zafar took charge of Ahmed foods inclusive
of full product range except NAURUS which was taken over by Zia.

AHMED FOODS today are a mere shadow of their glorious past. They have lost the footing
and the image they had held over such a long period in the local market. Employees are
unable to put in their best because of lack of interest from the management. There are so
many surplus employees unwilling and unable to work. Also there is lack of motivation
among the workers since there is no visible career growth. The employee turnover ratio
has become high and the highly skilled workers have left the organization and joined
SHAN, NATIONAL, SHANGRILLA and other companies. There are no proper marketing
efforts and majority in today’s generation have no brand recognition of Ahmed Foods. All
this has happened at a time when nearly all of their competitors are thriving not only
locally but many of them have expanded their businesses globally.

Lack of marketing & promotional efforts –

In terms of quality Ahmed Foods are still second to none but since they have not focused
on marketing their brand in the last 2 decades they have become a have been. Presently
Ahmed Foods availability is confined mainly within old main city area of SADDAR and its
suburbs. They also have a fair price shop in SITE area. Lack of marketing and management
blunders have forced them to lower their prices thus targeting the price conscious layer of
customers for their product range of SQUASHES, CHUTNI AND ACHAR etc. Ahmed Foods
are trying to revitalize a dying brand and negotiating with major super marts to give them
the shelf space.

NAURUS & JAM E SHIRIN -

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NAURUS FOODS have fared better as compared to Ahmed. To begin with they had only
one product (NAURUS RED SYRUP). When Naurus were separated from Ahmed Foods they
only had ROOHAFZA in competition. But in 1995 QARHI launched their red syrup JAM-E-
SHIRIN in the market with a bang. JAM-E-SHIRIN incurred heavily on promotion and their
TV commercial was aired at prime time slot of PTV 9 PM news daily as there were no
private TV channels till than in Pakistan. The JAM-E-SHIRIN ad featured the most
prominent celebrities of that era including Pakistan’s legendary film star NADEEM & TV
star ATIQA ODHO, and their promotional efforts paid off. Since then Jam-e Shirin has
captured a big slice of the market. NAURUS is not promoting their brand the way they used
to do in the good old days. NAURUS despite doing better than Ahmed do not enjoy the
same brand equity that RROH AFZA and JAM E SHIRIN are enjoying.

QUESTIONS FROM CASE STUDY

1- If you are assigned with the responsibilities of Ahmed Foods MARKETING

MANAGER highlight at least 3 steps that you would take from a marketing
perspective to bring Ahmed Foods back into reckoning. (Approx.600 words) 9
Marks

ANSWER 1

It is worth to say that the Ahmed Foods was one of the best food industry ways back in the

50’s. It was on its achievement stage but the unfortunately after the demise of the owner

Zamiruddin Ahmed it start to fall down. But nothing is ended, it can again get to the days of

it success.

If I’m assigned with the responsibilities of Ahmed Foods MARKETING MANAGER, I

will do my level best to bring it into the reckoning with the help of the marketing skills

which I have been provide via my marketing ideal professor AtherQadeer.

Firstly the most important part that I going to look for is the competitor Ahmed Foods

which are in vast number. As at the time of Zamiruddin Ahmed, when Ahmed foods was

launched there were no more than one competitor, as compare to today. So to overcome the

competitor new and unique strategy should be implementing.

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The most workable way to overcome the competitor is to identify and solve the pain points

of the customers. As compare to 50s many more desserts are being setup likewise the

chocolates and cakes, so to reckoning the company new product must be implement or can

remake the all product and sell it in unique way rather than Halwa. One unique strategy I

will mostly do is to collect list of chiefs and experts of cooking, and make it online for

every food lovers. As in this pandemic mostly people are at home along with their smart

phone so as the chiefs themselves. So it is the best way to grab them and telecast the food

making tutorial live in social media which are cooked by the use of Ahmed Foods Masala.

In this way the marketing plus promotion of Ahmed Foods will be done.

Secondly, I will go through the unique advertisement step, because it is the best way

according to this era by which people get aware of the product. I mostly try to cover the

social media.

The advertisement which I am going to use is quite unique relating to these days. As in this

pandemic every individual is wearing mask to be saved from corona virus, so the

advertisement strategy is that the food which is made via Ahmed Foods masala has so

strong smell that while wearing the mask one can blessed and can be attracted by the

aroma of the food.

And the third but not the least strategy which I use to thrive the Ahmed Foods back into

reckoning. That is the use of emotions as every day number of people are not getting their

rights and justice and also not getting a platform where they can share their story not only

the people who are not getting justice but also the people who are doing so much but are

anware to people so, Under my management I going to launch a platform likewise the

TEDTALK, where people from different places come and share their story. In this way

Ahmed Foods will get the promotion in large scale. The promotion of Ahmed Foods works

like the Red carpet of the TEDTALK. As when ever people talk about the TEDTALK the

Red carpet probably comes to our mind, likewise when ever people talk about the Ahmed
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Foods platform of storytelling, people will start thinking about Ahmed Foods which is the

best brand recalling strategy.

2- If Ahmed Foods and Naurus merge once again into a single unit do you think they
would be able to regain their lost grip in the market? What are the advantages
from marketing point of view in case of a merger? Are there any dis-advantages of
a merger? Write down your answer from both perspectives. (Approx.500 words) 8
Marks

ANSWER 2.

In my opinion it is best to be merging again, as a merger occurs when two company join as

one. The new firm will have a better and increased market share, which helps the firm gain

economies of scale and become more profitable. The merger will also decrease competition

and could show the way to higher prices for consumers. As by the merging together they

will once again be under the same vision and mission. Or it would not take time to

understand each other as one because previously they were the one, and was doing well. So

once again be merge will be beneficial or both of them. By merging many advantages take

birth likely that they can do greater investment without any fear because by merging to one

firm they will have more profit which can be used to finance risky investment. And getting

failure will not cause that depression as a merger, creating a bigger firm, gives more scope

to tolerate failure, encouraging more innovation. If Ahmed Foods and Naurus merge once

again into a single unit they have many opportunity, it will also enhance the customers,

which causes less competitor. The one of the benefit that Ahmed Foods and Naurus will get

is the innovations, as innovative Product development is expensive and risky, so on

merging to getter they will face less depression on lost but many innvotion will be the

concluding point. And last but not the least is that the pressure of taxes, one of the benefits

of the merger is the tax gains and revenue enhancement through market share. Joint

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companies generally expect more value from separate firms after merger. Merging two

companies also as the cons side too. Likewise Ahmed Foods and Naurus will also going to

face. The enlarged market share can lead to monopoly power and elevate prices for

consumers which are a great disadvantage for them. The consumer perceptions also very

when merging occur, as they need to think about how consumers view the two brand and

whether or not they view them in a well-matched way.

3- Recommend a new product to Ahmed foods that you think would give them a
competitive edge in the market. Justify your recommendation with solid reasoning
and arguments. (Approx.500 words) 8 Marks

ANSWER 4.

When it comes to recommending many product comes to mind, but recommendation to the

company or the brand like Ahmed foods bring curiosity to think about it. So keeping the

vision which is to strong foundations of boosting healthiness, fitness and enchanting flavors.

My recommendation to Ahmed foods is that to launch the Ahmed foods Cooking Oil which

is the best matched to the vision of Ahmed Foods which the owner of Ahmed Foods

Zamiruddin Ahmed dreamed about. As we know that cooking oil is the mostly used product

in daily life. And luckily Pakistan is the fourth largest edible oil importing country. It shows

that how the use of cooking oil is being on daily bases. Ahmed foods cooking oil will be on

its peak, as Ahmed foods from its initial as did the level best to promote and gave and

satisfactory relief to their customers. When in this lockdown people do buy the edible oil

rather than the other products that Ahmed foods sell. The most solid point of recommending

for the edible oil is that, Pakistan is the country were people are food lover they love the

food so much that they don’t care about their health. Most of items are full of fats, which

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means that how the use of edible oil on its peak. If we have a look on the top most

recommended food items we will get to know that most of them are the items which are

used via edible oil. And in Pakistan after every day there is occasions celebration, and

where there is celebration there come the oily foods likely Biryani, Korma, Karahi, and

many more oily product. So the edible oil use is on its peak. That’s why my

recommendation Ahmed food is launch the edible oil product. Specially in month of

Ramadan the use of edible oil get to its peak, as mostly the items are made via the cooking

oil likely the pakoras, samosas and many more oil full item. And the best use of it is for the

breakfast by Paratha. As we Pakistani do not likely have breads in breakfast, but yes the

Paratha is necessary except it the breakfast is not complete. And last but not the least the use

of cooking oil for making of Biryani and Karahi which is the first choice of mostly every

Pakistani. So keeping all these scenarios, I will highly recommend the edible cooking oil to

be new product to Ahmed foods products list.

CASE NO 2 (15 marks)

DOUBLE EDGE

After three years of research and development Paramount Health and Beauty
Company is preparing to launch a new advanced energy drink called THE DOUBLE
EDGE. The innovative new drink is a wonderful blend of unique taste and vibrant
energy.

After initial success in Europe and Middle East the management of Paramount Health
and Beauty Company has decided to introduce Double Edge in Pakistan market where

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 the company has a moderate presence in the market of skin care products. Jackson
Randall, the product manager for Double Edge, struggles how best to position and
promote the brand for launch in Pakistan. One strategy is to release Double Edge as a
“NICHE” product with price skimming targeting the high end market of trendy
individuals looking for exclusive energy/refreshing drinks. Another strategy is to
release the product into highly competitive mainstream energy drinks market where
the product can be positioned as the best energy drink available in market.

Randall is facing internal resistance to the mainstream strategy from the Zonal sales
manager MR. BAIG who warns Randall of strong retaliation from STING the market
leader in case a mainstream positioning strategy is followed. Mr. BAIG has also
recommended a comprehensive advertising research before finalizing the TV and print
advertising promotion strategies.

QUESTIONS FROM THE SCENARIO –

1- Which positioning strategy (Niche or Mainstream) would you recommend for

Double Edge? Give sound arguments to support your answer. (Approx.200 words) 3
Marks

ANSWER 1.

The strategy of Niche for Double Edge I would recommend, as Double Edge is the

energy which taste is awesome and will be loved by the customers. The reason of

going with Niche strategy positioning is due to that, Niche strategy will focus on

parts of the market with little or no competition which will help the Double Edge to

thrive it marketing slowly and after that it will go for the brand side. In Niche

marketing we have more chances to understand the customers this help us to

innovate the Double Edge according to the costumer desire likely the product

Double Edge with the amazing energizing taste will cover the small area of the

customers mostly the youth side and will be aware about that what actually our

customer desire is about the product. After that Double Edge energy drink will cover

the huge area. Niche strategy also increases the visibility too. So that is why in

conclusion the strategy of Niche for Double Edge is best positioning strategy

accordingly to my recommendation.

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 2- Keeping in mind the positioning strategy you have recommended for Double Edge
what type of distribution plan will you justify (Intensive or Selective or Exclusive)?
Why? (Approx.200 words) 3 Marks

ANSWER 2:

I will go with Selective strategy. As for the Niche positioning strategy we cover the

selective area and selective customers. As by Selective distribution it will easy to

understand how distributors handle their products and customers. By the help of Selective

distribution it will be able to enhance good market coverage. The other reason for going

with the selective distribution is to understand the customer very well, as selective

distribution is better knowledge of which customers are and therefore increase

effectiveness. Having smaller number distributors may also mean that you can create better

communication and put up more productive working interaction. Market exposure

advantages may also be enjoyed when comparing to exclusive arrangements. So that’s why

going with Selective distribution will best fit for the Double Edge.

3- Create a TAG LINE for DOUBLE EDGE. 3 Marks

“FEEL the WATT”

4- Create a demographic profile of target market of Double Edge. (Approx.200 words)

3 Marks.

ANSWER 4.

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The market is divided into groups on the basis of variables such as age, gender, income

level, Density, Occupation and ethnicity.

The demographic segmentation of Double Edge is as follow:

 Age: 14 – 45

 Gender: Males/Females & others too.

 Income level: Average, above average and one with high earners.

 Occupation: Students, employees, professionals, Explorer.

 Density: Rural & Urban.

 Ethnicity: As Race and ethnicity are sensitive categories. So Double Edge will be

provided for every individual of any race.

5- Develop an integrated marketing communication plan for Double Edge that would
complement each other and develop brand equity. (Approx.200 words) 3 Marks

ANSWER 5:

Integrated marketing communication plan for Double Edge, will be interesting part for the

marketing and promotion of it. As integrated marketing communication are mostly use to

promote product via advertising their campaign on TV, magazine, online and radio, and

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mostly use tool which is social media. As Double Edge mostly be targeting youth as it is

sign of energy. Double Edge will cover the advertising side.

In these days everyone is active on social media rather than the TV, so we will mostly cover

the social sites.

We will use the use human psychology and make advertisement on it. One advertisement

idea to promote the Double Edge in Pakistan is to do something that will compel the people

to be together. As this plan will work, we will hire an expert and make him to act like he is

attempting suicide from a building and we will spread the rumor of his suicide attempt, by

which many media and people with their Smartphone will gather there and defiantly will

make video of him. After noticing the vast number of crowd the expert will then announce

the advertisement of Double Edge and reveal that he is here to advertise the Double Edge

energy drink , which will be spreaded all over the social media and I’m very well familiar

with the mind set of Pakistani crowd that they going to call it genius marketing strategy.

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