term report on one potato two potato

Marketing report – One Potato Two Potato

3rd January, 2009

Letter of Acknowledgment

It has been a pleasure to be Ms. Maliha Murtuza’s students. We would like to thank her for

giving us the chance to apply the theories of Principles of Marketing in the real world.

Her lectures have been very interesting. We are extremely grateful to her and appreciate her

efforts for providing us full support, encouragement and valuable guidance.

We would also like to thank Mr. Abrar, Karachi Operations manager, of One Potato Two Potato

who provided us with the relevant information about the organization.

Sincere regards

Jawwad Akhtar 7934Junaid Javed 8064

Faizan Baig 7941Yasir Azeem 8229

Mohammad Hassan 7612Faraz Ali 7614

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Letter of Transmittal

3rd January, 2009

Ms. Maliha Murtuza

Member of Marketing Dept. and B.S.C

IoBM

Korangi Creek, Karachi-75190

Dear Ms. Maliha Murtuza

We are pleased to submit our report made on one potato two potato. We have visited the

company and observed the marketing environment. We have focused our attention on the

following variables to come to an understanding of the consumer behavior.

We appreciate you for giving us in depth knowledge and information regarding organizational

behavior.

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TABLE OF CONTENTS

INTRODUCTION.................................................................................................................................................. 4

Positioning statement:........................................................................................................................................5Mission statement:..............................................................................................................................................5Goal:....................................................................................................................................................................5Vision:..................................................................................................................................................................5Objective:............................................................................................................................................................6Policies:...............................................................................................................................................................6

ORGANIZATIONAL STRUCTURE:........................................................................................................................... 6

SWOT ANALYSIS.................................................................................................................................................. 8

SEGMENTATION TABLE....................................................................................................................................... 9

THE MARKETING ENVIRONMENT...................................................................................................................... 10

Micro-environment:...........................................................................................................................................10Macro-environment:.........................................................................................................................................11

BCG MATRIX..................................................................................................................................................... 12

MARKETING MIX – ONE POTATO TWO POTATO.................................................................................................13

Product:.............................................................................................................................................................13Pricing:..............................................................................................................................................................13Promotion:........................................................................................................................................................15Placement:........................................................................................................................................................15

BRANDING........................................................................................................................................................ 16

PACKAGING:......................................................................................................................................................16LABELING:..........................................................................................................................................................16POSITIONING:....................................................................................................................................................17DEVELOPMENT:.................................................................................................................................................18

CONCLUSION.................................................................................................................................................... 19

RECOMMENDATIONS........................................................................................................................................19

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Introduction

One potato two potato is a local chain of fast food working in Pakistan for past 10 years. In a

little time it has earned a good market .it is popular because of its excellent fries and burgers.

It’s been working as a take away restaurant and it hasn’t introduced dine-in facilities yet.

The corporation started out as a one small take-away restaurant in 1998 at Karachi. In the same

year it opened a new outlet at Lahore but now it has 13 take way restaurants located in

Karachi, Islamabad and Lahore. People from all ages are aware of its taste and quality.

The best part of one potato two potatoes is it has small counters placed at different shopping

malls and supermarkets which make it successful in acquiring equitable customers. Whenever

hunger for French fries is there one potato two potatoes is the first name that comes in

consumer’s mind which includes urban areas of Pakistan. Though it has a limited variety of fast

food but still it has long term plans which include dine-in facilities more out lets and a wide

variety of food.

Their outstanding brand recognition, experience management, high quality food, site

development expertise, advance operational systems ensure a position that enables them to

capitalize on urban opportunities. They plan to expand their leadership position through great

tasting food, superior service, everyday value and convenience.

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Positioning statement:

“We fry first class only”

Mission statement:

We serve people with good quality food, fast and at low cost:-

One potato two potato’s vision is to dominate the Pakistan’s food service industry .dominance

means setting the performance standard for customer’s satisfaction and increase market share

and profitability through successfully implementing our convenience, value and executive

strategies.

Goal:

One potato two potato’s goal is to become Pakistan’s best and quick service restaurant

experience. Their core focus is on customer’s satisfaction, high quality, hygienic food, and well

trained staff.

Vision:

One potato two potato is highly successful in capturing the taste buds of Pakistani people and is

looking forward to do the same with the global market. They are also planning to open their

outlets in UAE and KSA in recent future.

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Objective:

To cement the company pre-eminent position in the eyes and taste buds of the

customer

Maintaining its present customers and making new one by providing high quality and

taste

Being the customers’ first choice.

Policies:

Cheapest by offering lowest prices

Easiest by providing top service in the most convenient place to shop

Hottest by focusing on the trendiest new gimmicks

Biggest by offering the widest variety of products

Organizational structure:

One potato two potato has horizontal hierarchal structure it has a limited number of loyal

employees called as “team members” .it has got following departments,

Marketing department

Human resource department

Operational department

Quality, service and value department

Marketing department handles that what next scheme or deals are to be used. They

plan out what promotional tools are to be used in the upcoming days.

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Human resource department handles the customer looking after the customers’ needs.

Listening to the customer wants and demands, customer satisfaction and customer

value.

Operational department looks after the operations being done in the outlets, technical

departments, etc

Quality, service and value department design programs to constantly improve the

quality, service of the food.

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SWOT ANALYSIS

SWOT analysis is basically a study to find out a company’s strengths, weaknesses, opportunities

and threats. SWOT analysis tells the company about their strong points and gives them an

opportunity to work on their weaknesses. The SWOT analysis for ‘OPTP’ is as below:

STRENGTHS:

The biggest strength of ‘OPTP’ is its committed workforce and emotional attachment

with the brand and company. The company has a loyal and committed workforce that’s basic

goal is to deliver a premium quality product. They don’t allow outsiders in their processing

premises as they fear leaking out their secret recipe.

WEAKNESS:

The biggest weakness of ‘OPTP’ is their lack of vision to grow and expand. Had OPTP

wanted to grow, they would have really succeeded due to their increasing demand in Karachi,

Lahore, Islamabad and other cities of Pakistan where ‘OPTP’ is not available. Hence if ‘OPTP’

wanted to grow, it could have grown in terms of size as well as introduce different variant of

fries, burgers and hotdogs.

OPPORTUNITIES:

Due to a considerable demand of their fries in the areas where it is not available, the

biggest opportunity is to grasp the high market share and make it proficient enough to enter

the star cell of BCG Matrix.

THREATS:

One of the biggest threats for ‘OPTP’ is that of fake brands that are copying the product. The brand is considered to be one of its kinds but still is unable to grasp a higher market share.

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They fear that if any competitor will enter the market they will lose the existing market shares too.

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Segmentation Table

GeographicCountry Pakistan

City Karachi, Lahore and IslamabadDensity Urban

Metro Size 172.8 MillionDemographic

Age All age groups – Anyone who loves fast food.Gender BothFamily 1 – 2, 3 – 4, 5+Income 30,000 Above

Occupation AnyReligion Any

Race AsianNationality Pakistani

PsychographicsSocial Class Middle, Upper Class

Life Style Achievers, StriversPersonality Compulsive, Gregarious, Authoritarian, Ambitious

BehavioralOccasions Regular, Special occasions

User Status Nonuser, Ex-User, Potential User, Regular UserUser Rate Light user, Medium user, Heavy user

Loyalty Status None, MediumAttitude Positive

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The Marketing Environment

Micro-environment:

1. Suppliers

OPTP’s basic needs for their daily operations are Potatoes for fries

The potatoes are imported by OPTP through a well known supplier “ The potato Factory international”.

Bun breads for burgers

Bread and other such baked products are purchased “DAWN BREAD”.

Vegetables for burgers

Purchased from local vendors.

Mayonnaise, ketchup and other sauces

Purchased locally.

2. Branches

OPTP have branches in three major cites of Pakistan (Karachi, Lahore, Islamabad) strategically located at prime spots for entertainment. Moreover they have small vending outlets at various shopping malls and departmental stores, OPTP also provides on the spot catering for occasions such as parties, melas etc.

3. Intermediaries a. Physical Distribution Firms: OPTP does not cater home deliveries. All business is done via their outlets.

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b. Marketing Service Agencies: Most of the marketing operations are handled internally.

4. Competitors

Competitors are,a. KFCb. McDonaldsc. And other major and minor fast food outlets.

5. Consumers

Consumers comprise of people of any age but majority are teenagers and younger population.

Macro-environment:

1. Technological Forces

OPTP uses conventional cooking and frying equipment. No innovation in this particular area as the demand at current level is sufficed.

2. Cultural Forces

The current culture of Pakistan’s metropolitans is shifting towards the trend of eating out and the society is rapidly adjusting to this change.

3. Economic Forces

During the recently ended economical boom many of such businesses thrived and much growth was seen, but currently prevailing situation has shown a great decline in responses.

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BCG Matrix

On the BCG matrix the OPTP is classified as a Question mark (?) due to high market growth and low market share.

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Marketing Mix – One Potato Two Potato

Product:

OPTP offers basic fast food products like fries, burgers, hotdogs and sandwiches. But there are what OPTP is known for. OPTP specializes in fries and has unique varieties ranging from typical plain fries to much elaborate Garlic Mayo fries and specialty Bar B.Q fries.

Pricing:

OPTP prices its products at affordable levels and fall in relatively moderate priced products. Even though they are not charging low compared to market to fall in market penetration strategy, they call it so because they consider the foreign fast food chain as their competitor ignoring the competition from locals.

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Promotion:

But when we talk about OPTP, there hasn’t been any sort of advertising or promotional

campaign from the company’s side. We talked to several people and all of them were aware of

this brand, yet none could recall watching a OPTP commercial, seeing a OPTP billboard but

some remember receiving a OPTP flyer long time back.

Placement:

OPTP have branches in three major cites of Pakistan (Karachi, Lahore, Islamabad) strategically located at prime spots for entertainment. Moreover they have small vending outlets at various shopping malls and departmental stores, OPTP also provides on the spot catering for occasions such as parties, melas etc.

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BRANDING

“A name, term, sign, symbol or design, or a combination of these intended to identify

the products and services of a seller or a group of sellers and to differentiate them from those

of the competitors.”

Today, consumers view brand names as an important part of the product. Branding adds

value to a product. Branding has become really common these days. And almost everything

available is branded. Branding has many advantages; it helps consumers identify the products

from which they might be benefited. When a person buys a branded item he would be aware of

the benefits, quality and features associated with it.

PACKAGING:

“The activities of designing and producing the container or wrapper of the product”

Since OPTP is a fast food product, it is mostly consumed within an hour of its

manufacture, for this reason the OPTP does not concentrate on intensive packaging. The OPTP

packaging includes simple small paper envelope for fries and a cardboard box for burgers. All

the packaging bears the OPTP brand logo.

LABELING:

Labeling of products is very essential. Labeling performs multiple functions. It identifies

the product. It might also describe many things about the product- like who made it, where and

when it was made, its contents etc. it can also help in the products promotion.

OPTP does not concentrate on packaging therefore labeling of OPTP has been ignored until

now.

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POSITIONING:

“Arranging for a product to occupy a clear, distinctive and desirable position relative to

competing products in the minds of the target consumers.”

Positioning the brand actually refers to successfully placing the product in the minds of

the customers. Commonly, positioning is done by aggressive advertising and promotion of the

product. Companies also use the “brand recall” strategy. In this, a company uses different ways

to remind he customers about their product over and over again. This again is done through

repetitive television commercials, billboards, posters, flyers and various marketing offers.

But when we talk about OPTP, there hasn’t been any sort of advertising or promotional

campaign from the company’s side. We talked to several people and all of them were aware of

this brand, yet none could recall watching a OPTP commercial, seeing a OPTP billboard but

some remember receiving a OPTP flyer long time back.

So, how has OPTP positioned itself in the market?

Even though OPTP does not advertise its product, it still occupies a distinct position in

the market. OPTP has focused on the fundamentals; it identified the needs of the consumers

when it was launched, and is still satisfying their wants. OPTP emerged as a product to satisfy

the potato fry craze (known as “French Fries”) of the Pakistani people. It was a very innovative

product and was not segmented. It targeted everyone- all age groups, genders, social classes

and groups.

OPTP has a unique set of loyal customers and they have been consuming it from day

one. However OPTP is struggling to capture further market.

Thus it is deduced that OPTP does need a stronger positioning strategy to grow further.

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DEVELOPMENT:

OPTP was launched as an innovator in “eating out” when it was initially launched in

1998. At that time there was no concept of “eating out” or “fast food” among the common

people. Since the product was new in the market, OPTP had a few large competitors, which

were expensive and out of reach for many. OPTP’s aim was to provide a high quality product at

an affordable, yet profitable price. Due to its fine quality and innovation, the product was very

successful. Hence began the product’s brand development. A brand is an identity, and it

strengthens as the product becomes more popular and its consumption increases. Over the

years, OPTP has never compromised on the quality of their product. They took all possible steps

to restore the taste when they received some negative customer feedback. OPTP has now been

serving us since 10 years and their top-most priority is still the provision of superior value. OPTP

has developed its brand in 10 years, but it is still struggling for its market share against a

number of world leaders in this industry.

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CONCLUSION

After completing our research we came to the conclusion that most of the people are satisfied with the current variety, quality and hygiene. Hence OPTP has been successful in making its place in consumers mind within a short period.

Given below are the recommendations for the organization to enhance their customer equity and acquiring a bigger market share.

RECOMMENDATIONS

Prices should be reduced More marketing should be done Packaging should be changed Burgers should be improved Proper dining facility should be available More outlets More flavors of fries should be introduced Home delivery system Introduce more items

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term report on one potato two potato

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