Topic

The Marketing Plan of Khalis Chaki Atta

Group Members
Mubeen Ahmed (163-15-0013)

Mushtaque Hussain (163-15-0016)

Shahid Ali (163-15-0022)

Program:
BBA-Agribusiness 7th Semester

Subject:
Principles of Agricultural Marketing

Supervisors Name:
Sir, Muzamil Sattar

SUKKUR IBA UNIVERSITY

 Contents
1. Executive Summary
2. Our Vision Statement
3. Our Mission Statement
4. Current Marketing Situation
5. Product Review
6. Table 1.1 segment needs and corresponding features/benefits
7. Competitive Review
 Bhej pagara flour mill
 Crown flour mill
 Dastagir flour mill ranipur

8. Table 1.2 Sample of competitive products and pricing

9. Channels and logistics review
10. Table 1.3 Swot Analysis of Desi Chaki Mill
 Strengths
 Weaknesses
 Opportunities
 Threats

11. Our objectives

12. Marketing Strategy
 Positioning
 Product Strategy
 Pricing Strategy
 Distribution Strategy
 Marketing Communication Strategy
 Marketing Research

13. Action Programs

14. Budget
15. Controls

Executive Summary

Lunching a new quality product for any organization with its passage of time is a fundamental
technique for sustaining in this modern era. The core focus of desi chakki mill is all about the
customer wellbeing and their heathy nutrition. Keeping in view all this company is introducing a
quality product called Khaalis chakki atta which will not only enhance the customer lifetime health
but also remain them healthy. Demand of this desi atta has been increasing for many years. Similarly,
majority of people want to have this refine quality atta since they cannot compromise good quality
over vague quantity, so company’s main motive is to provide this atta in the whole district of
Khairpur.

Our Vision Statement

 To become the best supplier of pure flour over all in the country, and become the best brand
in the flour industry

Our Mission Statement

We are producing the pure flour to serve the community. Produce with a high quality and
gives more values to the consumers. We take care of our health through, providing the high
valuable product to our consumer. It is impossible to produce such a valuable product without
our hard worker employees.

Current marketing situation

Situations of markets are the only variables which make the company’s upcoming performance. here
the company desi chakki atta is targeting towards the citizen of Khairpur mirs an order to approach
them according to their needs and want for getting high market share in the field of flour mills.
As the world is involving in many health-related serious issue due to unhealthy food, poor quality
ingredient and improper nutrition available in the daily use product said flour. Market is providing un
healthy flour to the peoples of Khairpur and the citizens highly demanded for the chaki atta because of
the health issues are increasing after the eating local flour. Desi chaki mill consist of consumers and
whole sellers, retailers who prefer to use a khaalis chaki aata for great health benefits and live healthy
life. During the first-year specific segments being targeted include All peoples of Khairpur district
who lives in urban areas, Major retailers, wholesalers. Table 1.1 shows how desi chaki mill addresses
the needs of targeted consumers and business segments.

Product Review:
Our first product, the khaalis chaki aata, offers the following standards quality with ISO 9000
quality management system.
 Khaalis chaki aata has high gluten content and which has made from hard wheat.
 Khaalis chaki aata provides 408 calories per bowl, 16 grams of protein, 86 grams of
carbohydrates, 13 grams of fibre and 3 grams of fat.
 Khaalis chaki atta helps you prevent constipation.
 It helps you in lower blood cholesterol and helps you lose weight.
 Cheap source of iron, niacin, vitamin B6 and thiamine.
 It also provides a certain amount of calcium, several vitamins and minerals.

TABLE | 1.1 Segment Needs and Corresponding Features/Benefits

TAREGETED SEGMENTS CUSTOMER NEEED FEATURES/BENEFITS

 All the people of urban  Get the healthy flour  Easily accessible at their
areas (Most of the doorsteps
district Khairpur)
 Retailors  More the pure than  Available at many retailors
the traditional local shops where can be
(which bought from bought easily
the local shops
comes from the flour
industries)

 Wholesaler  To fulfil their basic  A very cheap source of

need iron, thiamin, niacin, and
vitamin B6.

 House hold  Strong muscles and  Also provide a certain

full of energy amount of calcium, several
vitamins and minerals like
selenium, manganese,
phosphorus, copper.

 Super stores  Provide protein in form of

gluten

 Agencies  Get in different size

packaging

Competitive review
In the growing world the population is increasing day by day and the demand of foods
increasing fast and some of the food producing companies increase their production without
checking health benefits and quality of their products. Apart from this there are some major
flour mills in our targeted region and those are our competitors are as under:
  Bhej Pagara Flour Mill Khairpur

In the flour market of Khairpur the bhej pagara flour mill contribute and deliver flour
to the wholesalers and retailers as well as to the restaurants of Khairpur. They produce
the 3 types of flour from hard wheat and pulses, (1) Special Flour, this type of flour is
full white in colour and more fibres in eating. (2) Soji Flour, soji is the coarse and
number 3rd is Maida. Their strategy is to target the major wholesaler shops as well as
the popular restaurants.

 Crown Flour Mill

Crown flour mill is producing the chaki atta and they produce 15000 ton flour every
month, their flour mills in several countries as well as in Pakistan they produce chakki
atta and supply it in whole country, Crown flour mills also deliver their chakki atta
through online website named daraz.com in Pakistan.

 Dastagir Flour Mill Ranipur

The major advantage of this flour mill has the prime location and it located at
National highway Ranipur and they target the all major towns and tehsils of Khairpur
district as well as they provide their products to local bakeries and wholesalers also
they majorly target the restaurants those who are located along with the National
Highway. They also produce the three types of flour but in large amount because of
their demand is very high in Khairpur district.

TABLE | 1.2 Sample of competitive products and pricing

Competitor Product weight Size of Bag Price

1. Bhej pagara flour  Special Flour 40 kg. /20 kg. Full size/medium Rs 1600 /800
mill
 Medium 40 kg. /20 kg. Full size/ medium Rs 1400 /700
quality flour
2. Crown flour mill  Crown chakki 5 kg. Small Rs 340
atta
10 kg. Medium Rs 650

20 kg. Full Rs 1200

3. Dastagir flour  Special Flour 40 kg. /20 kg. Full size/medium Rs 1650 /850
mill
 Medium 40 kg. /20 kg. Full size/ medium Rs 1450 /750
quality flour

Channels and logistics review

Desi chaki mill product will be distributed through a network of retailers, super stores,
wholesalers and top agencies of grocery market in Khairpur district. We contacted and
made them our partner.

 Local retailer stores, our target is to all local stores will carry our product in
stores and in catalogues as well.

 Super Stores, Desi chaki mill product will also be in the shelves of super
stores in Khairpur city specially here we easily target the elite class of
Khairpur.

 Wholesale stores, we target the main wholesale stores of Khairpur district and
we also give the benefits to our wholesalers like discount and gifts.

 Major Agencies, agencies purchase the flour in bulk quantities and distribute
to wholesaler, retailer, Bakeries, restaurants, so we make a deal with agencies
and gives them target of sales our new product khalis chaki atta, then we
reward them if they complete our target.

TABLE | 1.3 SOWT Analysis of Desi Chaki Mill Company

Strengths Weaknesses
  First mover who provide a pure  Lack of awareness about the benefits
cakki atta in bulk amount. of such pure flour and unaware of
that brand.

 Produces the pure flour without any

extraction.

 Same price as that of local.

 Different size in packaging.

 Healthy and better in taste.

 Unique packaging.
Opportunities Threats

 Increase the demand in future.  High competition may other service.

 after awareness of pure flour.  provider entered in production.

 Increase the branches to cover the  Current existence of other flour mills
more areas of urban. who provide the low-quality flour.

 Target the whole country.  Already the huge competitors are

existing in this field.

Strengths
1. As according to the current situation of the market, that there is no such a
mill/company that provide the pure flour. Here it’s our first move to that way a good
strength in competitive market.
2. Quality wise our product is the best. Because in this we do not use any other
component than wheat. It means me produce a pure and a best flour by the quality
wise.
3. The price of product should be less or equal to the that of local market with high
benefits.
4. We use the different size bags for packaging that everyone can buy easily according to
their need. Because as we are targeting urban areas most of them are low number in
family size.
5. As we mentioned that it’s a pure flour, it means it must contain proteins and minerals
which are beneficial for our health. Better in taste and very healthful.
6. Unique packaging in sense of that our packaging would be secure and stronger than
other competitors. Because most of packaging is very poor and the risk of impurities
mixed with that flour like dust.
Weaknesses
 1. There is no or less awareness of benefits of pure flour that would be our big issue, but
we overcome that by doing the seminars at universities and other places through the
doctors. As our targeted community is very conscious at doctor’s advice and
educational institutes, words of mouth by sanding our employees and customers as
well.
Opportunities
1. After the awareness of benefits of pure wheat flour there would be increased in
demand of pure flour and many chances of all shift to the pure flour.
2. By increasing the demand of pure flour, we will increase the no of flour mills in
different areas and cover the most district of Sindh (urban)
3. After the covering the province, we quickly take step to the other provinces of
Pakistan. again, targeting the big cities and urban areas through the promotion.
Threats
1. The other competitors may enter in this business because they can easily enter in this
business because there are many atta chaki already exist who provide the service of
flouring. They can easily enter in this business just to take one step more.
2. Currently there are many flour mills who provide less quality flour and have a high
impact over the customers
3. Other competitors are increasing in numbers they must influence the demand of pure
flour by producing low quality flour.

Our Objectives
We have set the objectives about sales and increasing the distribution of our product to
nearest cities for the first year and second year of the market entry.

Our First-year objectives

During the Desi chaki mill first year on the Khairpur market, we set the target for total
unit sales of 5,000.

Second-year objectives
In the second-year we sale our product not only in Khairpur but as well as in sukkur city,
and we are aiming for unit sales volume will be 20,000.
Marketing Strategy:
Desi chaki mill marketing strategy is based on a positioning of product differentiation.
Our primary consumer target is lower, middle to upper class households who need to desi
and healthy flour for the better health of their families. In the city peoples mostly belongs
to the villages and they know the value of Chaki flour, so they also need the desi flour for
good meal. Our secondary consumer target is local and popular bakeries as well as small
and large restaurants, they also want the chaki flour for good quality of their products and
for customer satisfaction.
Positioning
So, we are using product differentiation and we are positioning the Desi chaki mill as the
most convenient, value added khalis chaki atta for every size of families and for every
class of families and it is ISO certified product as well as doctors recommended to their
patients to use chaki atta and all capabilities differentiating the khalis chaki atta, so these
all things give us a competitive advantage.
Product Strategy
The Khalis chaki atta including all the qualities and features described earlier in product
review section. Khalis chaki atta will be sold with a 100% pure wheat flour crushed in
stone chaki. We will plan to stretch the product line upward and downward side with
another new product in second year for lower class and upper class households with new
qualities. The packaging of khalis chaki atta is different from others we give the flour in
cloth bags that are internally covered with silicon coating that will protect the flour from
bacteria attacks.
Pricing Strategy
The khalis chaki atta will be packed in 3 different sizes (40 k.g), (20 k.g) and (5 k.g) the
product will be introducing at retailer price 40 k.g (Rs 1600/ bag), 20 k.g (Rs 800/ bag)
and 5 k.g (Rs 250/ bag). The wholesale rate is 1550/ 40 k.g bag, this pricing strategy
attracting the consumers as well as wholesalers because of we give the more benefits at
same competitor price.
Distribution Strategy
The strategy about channels is to use selective distributors, distributing Desi chaki mill
product to well-known and popular retail & wholesale stores. In the first year we will
afford the transport costs of our product until we have coverage in all sukkur, and it will
give the more benefits to wholesaler. Gives more support to our channels Desi chaki mill
will provide detailed specification, demonstration products.
Marketing communication strategy
Our communication strategy is, first off all we provide the information about our
company and product through print media and Khairpur city cable network. We will also
make the promotion of our product through doctors, ask them for recommended our
 product and tells the benefits of khalis chaki atta to the locals. To attract, motivate and
retain our retailer and wholesaler for push strategy. We will give them promotions when
they complete their selling targets and we will personal selling our product. Until the Desi
chaki atta brand has established our communication strategy will support purchases
through channel partners.
Marketing Research
Research is most important factor for knowing about the post purchase behaviour of
consumers for new product, so we will do the research at small scale just taking the
feedback and market surveys, it will help us to knowing about what the behaviour and
attitude of consumers towards our product is.

Action programs
We will start our business in April because as there is the harvesting of new wheat and it
would be a less in price. Here some action plans are given by monthly as follows. We write
down the action of first three months
April; We will buy the machine (Chaki) and electric motor for operating activities and a
building at rent. Along that we will also buy the other necessary equipment and tools. We will
buy wheat in bulk amount during this month because at the harvesting time it is sold out at
very low price. We give order to the bag manufacturing company with our logo and brand
name to immediately start the business in well manner. At the end of this month we will start
the operation of flouring the wheat slightly.
May; In this month we do the promotion of our product and sell some amount of flour to the
all wholesaler and retailors nearby. And continue our process we will produce only at about
20 mun per day as it is perishable in nature and try to all sell out.
June; in this month we continue the same activities with more efforts and a high promotion.
We may go to the universities of district Khairpur with a specialist or doctor for promotion
about our product launching. Maybe we conduct seminars there for promotion. And the
remaining activities are same as usual.

Budget
Our first-year sale will be Rs 80 lac by selling the 5000 units (in man =40 kg) of flour at the
price of 1600 per unit. Our cost will be at about 65 lacs. Most of our cost is buying the wheat
as more we buy more we will pay. At about the 15 lacs will be our profit and it will be
increased after one year. This business relates to the concept of more selling as more we sell
more will be profit. In first year we must buy a machine (small chaki) and an electric motor
for operating which comes under the cost and labour, electric cost, wheat cost and other
miscellaneous costs are included in the given cost. We assumed the all costs and still we are
earning a profit. As it is not up to mark due to fixed cost and the low sell as that of first year
and influence of competitors. But we can increase our sell and profit in coming years through
the promotion and reliable service to the consumer.

Controls
We will get the feedback from our customers and analysis what they want. Take a high care
of service and give them priority in our company and a value up to their satisfaction. It will
help us in problem solving and what issues occurred in that process. We should take most
control on the operating activities because if there is problem in sense that there is a damaged
flour filled in bag, it will cost a lot as a brand image. So hence we control the operating
activities to enhance our quality and service to the consumers. We create a better environment
for our employees that they feel comfortable at work and concentrate on the productivity.