Contemporary Marketing Report: Pista House Haleem, Semester 1, 2019

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This comprehensive marketing report focuses on Pista House's Haleem product, a popular Indian dish, particularly during Ramadan. The report begins with an executive summary and background information on the product, followed by a detailed situation analysis, examining both macro-environmental factors (political, economic, socio-cultural, technological, and demographic) and micro-environmental factors (employees, competitors, suppliers, customers, and the public). A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report then delves into the target market and product positioning, followed by an in-depth analysis of the marketing mix (product, price, place, promotion, physical evidence, process, and people). Finally, the report provides recommendations for improving Pista House's marketing strategies and concludes with a list of references.
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Running head: CONTEMPORARY MARKETING 1
Contemporary marketing
Student
Date
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CONTEMPORARY MARKETING 2
Table of Contents
Background to the Product..........................................................................................................................4
Situation Analysis........................................................................................................................................4
Macro environmental factors...................................................................................................................4
Economic factors.................................................................................................................................5
Socio-cultural factors...........................................................................................................................5
Technological forces............................................................................................................................5
Demographic factors............................................................................................................................5
Micro-environmental factors...................................................................................................................5
Employees...........................................................................................................................................5
Competitors.........................................................................................................................................6
Suppliers and Distribution channels....................................................................................................6
Customers............................................................................................................................................6
Public and media:................................................................................................................................6
SWOT Analysis...........................................................................................................................................7
Target Market and Positioning....................................................................................................................9
Marketing Mix Analysis............................................................................................................................10
Product..................................................................................................................................................10
Price......................................................................................................................................................11
Place......................................................................................................................................................11
Promotion..............................................................................................................................................12
Physical Evidence..................................................................................................................................13
Process...................................................................................................................................................13
People....................................................................................................................................................13
Recommendations.....................................................................................................................................14
References.................................................................................................................................................15
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CONTEMPORARY MARKETING 3
Executive summary
Pista House Company is among the flourishing companies in India dealing in modern foodstuffs
such as Haleem, snacks, biscuits, and kebabs. Upon the introduction of Haleem in 2002, the
company has carried out some refinements making it the best especially among the Muslims
during the holy month of Ramadan. During this season, the demand for Haleem skyrockets and
sales go higher. Various internal and external factors are affecting the success of this product
either directly or indirectly. Economic forces, for instance, such as inflation, interest rates,
income levels, and in general, consumers’ purchasing power substantially affects its demand.
Pista House is implementing modernized approaches of marketing with an aim of widening their
market coverage. This include use of social media platforms such as Facebook, Twitter, and
Instagram which apart from helping them acquire bigger customer base, enable the company to
maintain loyalty of the existing consumers through constant online contact. However, despite the
significant level of success relished by Pista House, there is always room for improvement. Some
recommendations on how this company can enhance their operations particular market targeting
and pricing strategies have been provided.
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CONTEMPORARY MARKETING 4
Contemporary Marketing
Pista House Haleem
Background to the Product
This report will focus on Haleem product produced by Pista House Company. Other products
other than Haleem that this company deals in are Sweets and Choicest bakeries. Haleem is
among the India’s most famous Muslim dishes and as a result, this report will analyze Pista
House Haleem product in the Indian market. This product was introduced in 2002 by
Mohammed Abdul Majeed but over the time its recipe has been tinkered around making it
smoother and richer foodstuff (Mirza, 2018). In what has been deemed as a smart business move,
initiated ties with Gati (a courier company) to entirely distribute Pista House's Haleem during
Ramzan around India, South Africa, Canada, Europe, UAE, and Singapore.
Situation Analysis
Macro environmental factors
There are various macro environmental factors that are influencing the sale and marketability of
Haleem and other related products in the Indian’s foods and beverages industry. Pista House
Company has no control over these factors which include political, economic, socio-cultural,
technological, and demographic forces:
Political factors: Political trends in India have a substantial impact on food and beverages
industry operations. Various government initiatives on this industry such as labor law, tax policy,
and environmental laws influence operations of Pista House Company.
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CONTEMPORARY MARKETING 5
Economic factors: Various economic forces play a crucial role in shaping operations at the
foods industry since it depends on the buying power of consumers. Various forces such as
interest rates, unemployment, inflation, credit availability affect this power thus influencing sales
at Pista House Company.
Socio-cultural factors: Indian society composes of people with diverse cultural values,
behaviors, preferences, and perceptions all of which affect operations at the food and beverage
industry. People from some cultures are barred by their beliefs from consuming some foodstuffs
and so they cannot purchase them.
Technological forces: India is among the countries in the world experience drastic technological
innovations. These evolutions have contributed significantly to the way companies in the foods
and beverages industry do business. For example, due to the huge technological innovations in
Pista House, their main product, Haleem has been enhanced.
Demographic factors: Demography is the study of human population in terms of statistics such
as age, occupation, sex, density, size, location, and race. The demographic factors are key to the
success of Pista House and the Haleem since they dramatically affect their marketing plans.
Micro-environmental factors
Apart from the macro environmental factors, there other forces, micro environmental factors that
affects the operations of Pista House Company from within. Some of them include: Employees,
competitors, Suppliers and distribution channels, customers, public and media.
Employees: Employees are one of microeconomic forces influencing the performance of
companies in the India’s food and beverage. Pista House has excellent HR policies and a team of
exceptionally qualified employees who have contributed to its success.
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CONTEMPORARY MARKETING 6
Competitors: Competition is rampant in the foods and beverage industry. Pista House, for
example, is operating at a very stiff competition from companies such as Silver Hill Foods,
Maison Berger, Spectrum Brands, Framebunker, and Kempinski Hotels among others
(Yousufain Pista House, 2019). These companies have really lowered the marketability and
market share of Haleem product.
Suppliers and Distribution channels: Distribution chain management and the management of
supply channels is a pertinent focus in Pista Home. This company has devised proper supply and
distribution channel in order to reduce costs, enhance operational efficiency and improve returns
from the Haleem product ( Franchise India Holdings Ltd, 2014).
Customers: Revenue and profits from the sale of various products have grown since Pista Home
knows its customer. This corporation uses various approaches to get on board as many customers
as possible owing to the impact they have on it.
Public and media: The
public image of Pista Home Company plays a vital role in its fortune. This is the reason the
management is investing substantially in social and environmental concerns in search of good
social image. It strives to have a positive image both in media and public.
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CONTEMPORARY MARKETING 7
SWOT Analysis
Strengths Weaknesses
Pista Home Company has a
relatively long brand history. It
was established in 1995 but
most of the competitors were
introduced later.
Well-known in Michigan,
Indiana and Wisconsin areas,
and USA thus it has wide
market coverage.
It offers a variety of foodstuffs
such Haleem, Biryani, Biscuits,
Cakes, Kebabs, Snacks, and
Indian.
There is customization of
products to suit customers’
needs and wants.
Good reputation in all the
Offer their products at little more
expensive prices than their competitors
Unsatisfying online marketing activities
The company has little exposure in the
global market
Inadequate production volumes for the
Indian market
Limited budget for marketing and
advertising
Difficulty in reducing production
expenditures
Shortage of manufacturing tools in India.
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CONTEMPORARY MARKETING 8
markets it operates
Improved business
environment.
Opportunity Threat
The mobile and the Internet
facilitate online orders
New available techniques of
improving productivity
New customers and markets for
their new products especially
Haleem
Positive growth of Indian
economy
Stiff competition from other food dealing
companies
Many substitutes for the main products
Health issues emanating from some goods
The product name (Haleem) not so viral
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CONTEMPORARY MARKETING 9
Target Market and Positioning
Target market in this context refers to a group of prospective consumers whom Pista House
Company sells its products particularly Haleem (Camilleri, 2018). The target market for Haleem
product is every Muslim during the holy month of Ramzan. During this time, Haleem becomes
exceedingly popular that not even world-famous delicacies come close it in terms of sales and
demand. Haleem is available in hotels throughout the year targeting people of all ages; children,
young people, and the aged. However, during the month of Ramadan, its demand skyrockets
(Think Change India, 2017). This phenomena implies that Muslims celebrating the Ramzan is a
subset of the total targeted market for Haleem because, during this time other people who are
non-Muslims consume this product though at lower quantities comparatively. Normally, a target
market exhibits similar characteristics such as lifestyle, location, income or gender but this one
of Haleem share similar religious believes. Muslims during the holy month of Ramadan are more
likely to buy Pista House’s market offerings and hence they constitute the most profitable
segment for this business to service.
Product positioning is a vital building block of Pista House Company’s marketing strategy.
Product positioning is the process marketers in this corporation are using to figure out how to
best communicate products' attributes to their targeted consumers based on special tastes and
preferences, needs, competitive pressures, available communication channels and vigilantly
created core messages (Kardes, Cronley, & Cline, 2011). Pista House has demonstrated through
their positioning statement the goal of becoming the best Company in Indian that offers the most
outstanding and excellent collection of Choicest bakeries, Sweets and Haleem (Pista House
Company, 2019). This announcement positions them as company that is reliable and permanent.
Pista House’s products despite their high quality, they are offered at very affordable prices which
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CONTEMPORARY MARKETING 10
most of the targeted customers can manage Customers who buy Haleem from Pista House feel
comfortable knowing they will always be able to get these foodstuffs, and they will get the value
of their money and remaining loyal to the firm. The positioning statement of Pista House can be
illustrated using this positioning map:
+High (price)
Haleem, Biryani, Kebabs
Low quality High quality
Snacks, Indian
Sweets, Biscuits
-Low price
Marketing Mix Analysis
The marketing mix refers to a set of tactics, or actions, that Pista House is using to promote its
Haleem product in the Indian market (Martin, 2014). The 7Ps make up a typical marketing mix
Price, Product, Promotion, Place, Physical Evidence, Process, and People:
Product: Product refers to the item actually being sold and in this case the item being sold by
Pista Home is Haleem. This product delivers a minimum level of performance and fits the task
consumers except to get when purchasing it. In Hyderabad (the capital of southern India's
Telangana state), Haleem is the best Muslim dishes. Due to its top-notch quality Pista House’s
Haleem has been popularized as the best Ramzan dish. Haleem is designed by mixing dals
( toor,chana, and urad), minced meat, spices, dry fruits, finely-pounded wheat, and plenty of
ghee. It is then cooked for 12 hours in cauldron (degh) using firewood, stirred non-stop using
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CONTEMPORARY MARKETING 11
ghotni (wooden mallet) until it becomes greatly nutritious porridge, sludgy and thick (Mirza,
2018). Some of its features include diversity since cooks may add different ingredients after
preparing it to appear different, and has different tastes (can be bitter, spicy, sweet) though
mostly the cooks try to balance them. Haleem is packed differently but mainly in small
containers weighing 300 grams. These containers are tight and vastly hygienic. On the lid of this
small container and on its sideways, it is labelled "Hyderabad Haleem." Pista House uses basic
techniques in branding their product such as using their tagline, consistency, great logos, and
being true to their brand (Jayaraman, 2012). Haleem just like any other product has followed the
normal product life cycle of introduction, growth, maturity, and decline and currently it is at the
maturity stage. Pista House also produces another assortment of products such as Biryani,
biscuits, cakes, kebabs, Indian, and snacks.
Price: The 300 gm of the Pista House Haleem goes for Rs160. This priced rose in 2017 from Rs
150 due what the management at Pista House termed as a result of increase in price of the
product’s ingredients. In 2017, the wholesale price of mutton shot up from Rs 340 per kilogram
to Rs 380. Prices of other vital ingredients such as cardamom, cumin, clove, and cinnamon
registered around 25% price increase (Shafeeq, 2017). So the company was impelled to raise the
price of their product thus applying the Cost plus pricing strategies. Pista House adds together
direct labor, direct material cost, and overhead costs together to arrive at the cost incurred in
prepared a unit of Haleem and then on top of that cost, they add a mark up in order to derive the
price of the product (Burton & Holden, 2013). This pricing strategy is quite simple, justifiable
and assures the company of contract profits. However, it ignores competition thus affecting the
market impact of Pista House since the competitors are charging substantially different prices.
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CONTEMPORARY MARKETING 12
Place: Express Distribution and Supply Chain major Gati Limited has initiated a contract with
GI licensed Haleem specialist Pista House to avail Hyderabad Haleem in various cities across
India (PR Newswire Association, 2018). Gati Ltd is the first firm to come up with this offering
and has continued its service of distributing this foodstuff for more ten years now. Haleem is
prepared till early in the morning and once it is packed in the aforementioned air tight and
greatly hygienic containers and airlifted for distribution from Pista House, Haleem is delivered to
different cities across India. The packaging done by Pista House set off by Gati's same day
distribution, ensures that Haleem product remains fresh with its taste undamaged till it is eaten in
the night. So in short, Pista House reaches the customer direct and this kind of distribution
channel is referred to as direct distribution. This direct-to-customer approach gives this company
more control over the entire process (Wisner, Leong, & Tan, 2014).
Promotion: The primary goal of various promotional strategies applied by Pista House
Company are meant to create public awareness of the Haleem product, to influence them to
consume it, and to initiate long term relations which will make them purchase it continuously
(Hanafizadeh & Behboudi, 2012). Just like most of the modern businesses, Pista House is
promoting their Haleem online in various social media platforms such as Facebook, Twitter,
Instagram, and YouTube. Through these platforms, Pista House is able to increase online sales,
increase brand awareness, generate new leads, strengthen customer support, and drive website
traffic. They also advertise their products using other channels such as TV and newspapers. This
enables Pista House to reach larger audiences and they normally air the adverts during the holy
month of Ramadan when the demand for their product is extremely high. By use of TV to
promote Haleem, Pista House gets a chance to reach customers when they are very attentive and
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