K&N's
K&N's
K&N's
K&N’s
Introduction
History
K&N’s, a founding pillar and beacon for Pakistan’s Poultry Industry started in 1964 with a single
minded objective of providing better nutrition for health and happiness of the nation.
January 1964, a young man, Khalil Sattar, still a college student, had a vision to foresee a need to
establish a poultry farm. His interest led him to start a broiler farm of 1, 000 chicks.littlte had he
known this flock was to become the foundation stone of K&N’S. This was the simple, inspired
and nationalistic beginning of K&N's with a single minded objective of providing a better
nutrition for health and happiness of the nation.
Building on years of poultry expertise and commitment to food-safety, K&N’s integrated all
poultry production activities under one umbrella to bring you safe and healthy chicken by
managing and controlling all stages of production.
Today K&N’s has its own stores in more than 55 cities of Pakistan and it is enjoying a strong
brand name and has large market share. They are being known as one of the best and quality
brand for safe and healthy chicken and frozen foods.
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K&N’s
The increasing demand of our products all over the country explains the worth; our promises are
getting through our valuable customers. We prefer what our customer does as we value the
healthy needs and desires of the locals portraying them into what we at our best.
Creating ease for the local consumers keeping in view the dead busy lives and preparing ready to
cook food with a homemade taste, appreciated on hygienic basis.
Company Mission
Driven by its basic values in pursuit of perfection, K&N’s is committed to have superior
products and unmatched service through devoted people and consistent development.
Four basic objectives of absolute integrity, enthusiastic diligence, continuous improvement and
high quality maintenance are at the core of all operations which provide an impelling urge for
attaining perfection. Driven by its basic objectives in pursuit of perfection, K&N's is committed
to have superior product and unmatched service through devoted people and consistent
development.
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K&N’s
It hires the largest team of veterinarians, nutritionist and highly experienced technical
staff.
Seminars are organized in all major cities and rural poultry centers where local and
foreign experts are invited to address poultry farmers on latest poultry developments
Free of charge vaccination and Technical training programs for poultry farmers are
regularly organized and training is also imparted for carrying out cost feed formulations
are also provided to farmers.
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K&N’s
Retail Format
Legal / Operational Format
Production activities of K&N’s are layer and broiler breeding, hatching, feed milling, broiler
growing, poultry processing and production of ready-to-cook & fully cooked chicken products.
K&N’s manages its own product distribution (including Pakistan’s most extensive company
owned cold-chain distribution system) and a chain of chicken stores for its range of chicken
products.
K&N’s also operates a state-of-the-art poultry disease diagnostic & research laboratory and
provides extension service to Pakistan’s poultry industry.
Quality products
Advanced technology
Brand identity
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K&N’s
Market Share
Market share of K&N’s is almost 70% (on average) in ready to cook food category. At Hyper
Star almost 80% people buy K&N’s products. At CSD almost 60% people buy K&N’s products
and at Metro almost 75% people buy this brand. This is the highest market share and at this time
it is the leading brand in this category.
Target market
The company is targeting different age groups as well as different income groups. Their prices
are normal so even a middle class person can afford it. They are targeting elite upper middle and
middle class. On the age basis, they are targeting children as well as the young people.
K&n’s analyzed the data gathered through the survey reports and decided to go after the
concentrated marketing. They have decided hostilities students, job oriented men and women and
teenagers.
These are the segments that can be called the time savers and our product will make them have
meal without time consumption.
Competitive Advantage
1. Important: K&N’s deliver highly valued benefits to our target customers in our products.
2. Distinctive: K&N’s have no strong competitor and enjoy distinctiveness in the market.
4. Communicable: The consumers can feel the difference in our quality, taste, hygiene and
prices that are communicable.
5. Preemptive: Competitor needs a lot and lot of hard work to match our standard else it is not
possible.
7. Profitable: The difference is profitable both for the company and the customers.
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K&N’s
Competitors
Competitors of K&N’s are Menu and Mano salwa. Both of these brands couldn’t make its brand
image as strong as K&N’s has. Secondly they are not providing that level of customer
satisfaction that K&N’s is providing.
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In its quality assurance cell, the company maintains a check and balance on methods of sales
distribution, new business ideas and strategic options, such as entering a new market or
launching a new product in its product line, changing its suppliers and outsourcing its services.
Strengths
K&N’s is recognized as a brand name
Along with the developed brand identity and trust reposed by customers, K&N’s has
established its name in international market as well.
The company is now a producer of its own unique type which produces various
categories of products segmented for different chunks of population while remaining in
lowest costs.
This is driven by a factor of self production plants which are self sufficient to produce
ingredients and helping materials by themselves for K&N’s finished products.
Another factor is the strong supply chain through its distribution channels. These factors
are the basic strengths of K&N’s product inherited from the company setup.
The unique taste and first time introduction in the markets have a vast scope in the
product line of its nature.
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K&N’s
Halal food
Weaknesses
Though no company is perfect in business activity performances yet pricing strategies
have been the pinching element in company’s market positioning.
Though the products are cost effective as we take quality under consideration yet most of
the products are targeted for the upper class of society. We can use appropriate and
differentiated pricing strategy to avoid this weakness.
Opportunities
As K&N’s majorly operates in Pakistan, a country where distribution of products is
limited to specific areas within an urban sector hence grooming their product of under
such circumstances has always been an opportunity for K&N’s.
By improving their Distribution channels as well as pricing strategies can give a robust
increase in brand equity and can promote their product demand overall in the market.
The company will extend their business in all over the world through exporting
their products
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K&N’s
The country also get benefit in economic power through trade of foodstuffs
Threats
Threats are always there in poultry oriented firms so K&N’s keeps an eye on new competitors in
dealing with different products related to chicken and poultry.
At present the only threat is the diseases spread amongst broiler chickens which can be
prevented by establishing medic control at breeding premises of company.
In case of the introduction of firms producing frozen chicken paratha might be a threat
which could be considered well before the start of production.
There is a big threat from competitors like Menu, Man-o-Salva, Dawn food etc
Diseases in the poultry like bird flu, Influenza, Hydro pericardium syndrome etc.
Rising rates of poultry related things such as; day old chicks, feed etc.
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K&N’s
Retail Strategy
Products
K&N’s markets layer and broiler hatching-eggs, layer and broiler day-old chicks, poultry feed,
processed chicken, and ready-to-cook & fully cooked chicken products.
Detail of Products
Whole Chicken
Designer Cuts
Karahi Cut {skin-less whole chicken cut into 15-17 pcs. Suitable for making
Chicken Karahi and other curries}
Qorma Cut {skin-less whole chicken cut into 15 pcs. Ideal for making
Qorma and other everyday curries.}
Boneless Meat
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Nuggets
KARHAI (WORK): Preheat oil ton frying temperature (180’c). Deep fry frozen
nuggets for 3 minutes, or until golden brown.
OVEN: Preheat oven to 230’c. Bake frozen nuggets on a baking sheet (turning
halfway through baking) for 5 minutes, or until golden brown.
Shami Kabab
KARHAI (WORK): Preheat oil to frying temperature (170’c). Deep fry froze
Shami Kabab, turning only once, for 2.5 minutes or until brown.
Chappli Kabab
FRYING PAN: Preheat a lightly oiled pan. Fry froze Chappli Kabab over
medium heat, turning until cooked.
OVEN: Preheat oven to 230’c. Bake froze Chappli Kabab on a baking sheet
(turning halfway through baking) for 6 minutes, or until golden brown.
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K&N’s
OVEN: Preheat oven to 230’c. Bake froze Haray Bharay nuggets on a baking
sheet (turning halfway through baking) for 5 minutes, or until golden brown,
adjust heating time accordingly
Burger Patties
OVEN: Preheat oven to 230’c. Bake frozen burger patties on a baking sheet
(turning halfway through baking) for 7 minutes, or until golden brown.
FRYING PAN: Preheat a lightly oiled pan. Fry frozen burger patties over medium
heat, turning until golden brown.
Chicken Tempura
Kofta
Combo Wings
Croquette
Hot Tenders
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K&N’s
KARHAI (WORK): Preheat oil to frying temperature (170’c). Deep fry froze got
tenders for 2 minutes 30 seconds to 2 minutes 45 second or until golden brown.
OVEN: Preheat oven to 210’c. Bake froze hot tenders on a baking sheet for 6
minutes, or until golden brown.
Fun Nuggets
Fully Cooked
Seekh Kabab
This is a fully cooked product; simply heat and serve. Avoid refreezing thawed or
heated product
MICROWAVE OVEN
FRYING PAN
Chunks
K&N’s chunks are fully cooked, great tasting, wholesome and convenient. Enjoy
them on their own or use cold or hot in salads, as topping for pizzas before
baking, in sandwich or white rice and pastas. You can also be imaginative and
create something new.
TO SERVE HOT:
Microwave oven
Oven
Frying pan
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K&N’s
Deli Line
Level of Product
Core Benefit: providing the good taste.
Actual Product: K&N’s product includes all ingredients in packaging according to the
core benefit.
Augmented Product: K&N’s product may provide some benefits which are related to
their product.
Pricing
K&N’s is only serving nationwide so they set prices of their products nationally. They cut price
of the product. If sales will not increase accordingly, they reduce price in order to increase sales
and to capture market shares. They focus to more customers.
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K&N’s
Placement
Products are stored at -21ºC to maintain freshness. Packed products
are moved into K&N’s sanitized refrigerated trucks for distribution
to ensure uncompromising quality control.
and leading retailers and also delivered to quality and food-safety conscious institutions such as
hotels, restaurants, airlines, clubs and international
restaurant chains.
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K&N’s
The distribution channel of K&N’s product is indirect marketing channel because this channel
contains one or more intermediary levels. All products are available at departmental stores like
Al- Fatah, Rahat, and HKB etc. K&N’s Chicken Stores are at prominent locations.
Promotion
Advertisements
Sales Promotions
Personal Selling
Public Relations
Direct Marketing
Print Media
Electronic Media
Physical Evidence
Store layout
The product quality is K&N’s key concern to ensure customer satisfaction so they take full
prevention in every step of poultry process. There are complete instructions which are given to
their employees, a roadmap to manage the quality standards. The most important factor of setting
up a retail store is location. If your store location is not good you will face several day to day
problems. Therefore while going for store location, K&N’s think about technical, commercial,
social and political aspects also.
1. Exterior
The front of the store is decorated with some flex boards located outside the store. There is some
signage along the road which gives direction toward the store from 200 to 300 meters. Lights are
used to make the exposure of the store name and logo on top of the front store. As, the retail
outlets are located at the prominent locations so it attracts a flow of customers. And there are no
parking problems. Stores are large enough to easily manage large number of customers at a time.
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K&N’s
2. Interior
The products are placed in the refrigerators at below 21o C to ensure freshness. The counter is at
the left side of the entrance. The color combination is of light colors and same colors are used for
the tiles on the floor. The employees are properly dressed with K&N’s uniform and well trained
to provide evidence of quality standards. The shipment/transportation is efficient enough to
cover the on time inventory.
People
People mean the internal customers to handle all the activities within and outside of the store.
The staff or employees have the direct impact on customer mind because they are dealing with
the customer. If employees have efficient and managed communication skills then they will built
long relation with the customers.
1. Staff capability
The employees who are working in K&N’s chicken stores are well trained and have the
capability to handle the stock from purchasing to distribution activities. K&N’s establish a
proper training program to orient the employees about the quality standards concern by their
customers.
2. Efficiency
All the employees are well aware of company’s mission statement and always stick on the road
map to acquire the objectives. The training program makes them able to achieve the highest
quality. There is a proper check and balance system for them which overcome the deficiencies to
perform well and give proper feedback.
Process
Poultry Breeding
K&N’s maintains layer and broiler parent stock populations in different regions
of Pakistan. Layer parent stock farms are located in the south and broiler parents
are bred in the colder mountainous northern region. Both types of parents are
housed at isolated breeder farms.
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K&N’s
To ensure strict bio-security, all breeder farms work on the important principle of all-in-all-out to
avoid multiple ages at any breeder farm. Breeding stock is housed in environment-controlled
houses equipped with most modern ventilation, cooling and heating equipment. Some of the
world’s best performances have been achieved at K&N’s.
Strict bio-security measures are taken at all farms to reduce the risk of disease transmission
through mechanically and physically transferred disease causative agents. Careful attention is
paid to bird health, vaccination, weighment and selection to maintain healthy and uniform
breeding flocks.
Hatching-eggs are cooled down inside air conditioned, humidified egg-rooms, packed and
dispatched in sanitized and environment-controlled vehicles to company owned hatcheries
located throughout Pakistan.
Hatching
K&N’s operates several strategically located hatcheries covering all day-old
chick markets to ensure delivery of high quality layer and broiler day-old chicks
to commercial farmers throughout Pakistan.
All hatcheries are equipped with most modern cooling, heating and humidification systems to
provide a uniform and consistent hatchery environment independent of varying outdoor weather
conditions.
Incubators from world-renowned manufacturers are installed at all hatcheries and their
performance data is recorded and monitored by a computerized incubation monitoring system.
Upon arrival from breeder farms, hatching-eggs are candled at all hatcheries to remove eggs,
which may have cracked during transit. Sanitation and hygiene is enhanced by mechanically
transferring eggs from one type of tray onto another until chicks are harvested from hatchers.
Maximum care is exercised while handling, reconstituting and administering vaccines using
proper techniques and modern equipment. To ensure chicks get off to the healthiest start and stay
protected from viral diseases, they receive inject able and spray vaccinations at the hatchery.
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K&N’s
Broiler Growing
In addition to supplying day-old chicks to farmers, K&N’s is also engaged in
broiler growing at company owned farms to produce broilers for our poultry
processing plant.
Under the watchful eye of our own poultry nutrition, health and housing specialists, they grow-
up in large, clean and airy houses equipped with state-of-the-art heating, cooling and ventilation
equipment.
The chickens freely strut around, breathe fresh air, eat at will and drink fresh, cool and pure
water. We really mean pure water as our chickens do not drink water from troughs, which can
lead to water contamination. They take sips from “nipple drinkers” which allow chickens to peck
individual water jets, which release one sip of water at a time to avoid water contamination.
Feed Milling
To ensure consistent performance with high standards, our chickens really live on
a healthy and well balanced diet. It is based on: natural grain products such as
corn, corn gluten, rice and wheat; oil seed meals such as soybean, canola and
sunflower supplemented with multi-vitamins and minerals.
Feed is always tested by our quality assurance lab to ensure it is wholesome because K&N’s
does not compromise on quality. Feed is also supplied to our day-old chick customers and
growers for realizing the profit potential of K&N’s quality day-old chicks.
Poultry Processing
At K&N’s state-of-the-art poultry processing plant, only healthy chickens are
used to produce high quality, safe and healthy chicken products. Chickens are
Halal slaughtered by hand (Islamic Zabeeha) strictly according to The Shariah.
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After Halal slaughter, chickens are processed in the most hygienic and automated manner.
During processing, the birds are washed inside out and our veterinarians constantly examine the
birds to confirm they are wholesome. Cleaning is constant and each evening the entire operation
is completely washed and sanitized. Only after very thorough inspection, the plant begins
operation each day.
All chickens pass through veterinary inspection to confirm they are wholesome. To keep a
continuous check on quality, hygiene and food-safety, random samples are collected from the
processing line for lab testing.
Some chickens are prepared to ship whole; others are packed as bone-in cuts or boneless
products. Products for quality and food-safety conscious institutions - such as hotels, restaurants,
airlines, clubs and international restaurant chains - are cut according to their specific
requirements and packed in bulk packaging. Products for retail are packed in K&N's branded
packaging and individually weighed, adding another step to K&N’s quality control.
Products are then blast frozen at a very low temperature of –28ºC to ensure product freshness,
taste and food-safety.
K&N’s world-class value-added chicken products are individually quick frozen using Individual
Quick Freezing (IQF) Technology.
Conclusion
In today’s fast moving world, the major issue related to society is the TIME. More people were
found to be careful about contents and taste of products they consume. They prefer easy to use
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K&N’s
and quick to serve products in their meals. The products are mainly focusing on the working
women and the hostilities
K&N’s is a largest selling brand in ready to cook food category. They are focusing more and
more on the fully cooked products for the ease of customers with the special focus on the
hygiene factor. It is the brand that provide value product to its customer. There market starts with
the customers and end with the customer. This is the main reason for their market share and
market growth.
Recommendations
1. They may set their prices at low cost to increase their profit.
2. They also need to express awareness of their food in backyard areas of the
country.
3. They may hit the middle class and may get more consumers.
4. The company may get more market shares through market condition.
References
1. http://www.kandns.com/html
2. http://www.answers.com/topic/marketing-strategy
3. http://en.wikipedia.org/wiki/Marketing_strategy
4. http://en.wikipedia.org/wiki/Strategy
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