K&N’S BEEF BRAND Following a success in the poultry industry since 1964, K&N’s now takes its first step for a journey to reach to the highest degree of success in the beef industry. Avant Garde Consultants have scanned the industry, the company, target market, segmentation and positioning, followed by a detailed marketing mix; including a journey to the brand and a detailed promotional plan along with the budget to draw a feasibility phase 2 report.
PEST ANALYSIS
Political Factors: Pakistan possesses a herd of about 26 million cattle, 28 million buffaloes, 26 million sheep, 62 million goats and 700,000 camels. Livestock is the main supplier of basic raw materials to Pakistan’s food processing industry. In spite of the big potential of large livestock population, meat industry in Pakistan has not been able to make its mark. The government of Pakistan is trying to promote the “Pink Revolution” which aims at increasing domestic production of meat. The following are the list of measures undertaken:
- The government of Pakistan has recently announced a “Livestock Development Policy” which addresses legal framework and development strategies and action plans for farmers using livestock. The policy aims to bring about a radical change in the current livestock production system. This policy aims at encouraging establishment of slaughter houses in the private and public sector.
- Two private sector led companies namely “Livestock and Dairy Development Board” and “Pakistan Dairy Development Company” have been established to increase the pace of development on livestock sector.
- Import of livestock machinery/equipment not manufactured locally is allowed duty free.
- Establishment of slaughter houses and temporary quarantine stations is encouraged in private sector.
- To provide access to credit to small holders, micro credit schemes have been initiated through commercial banks.
Economic Factors: In Pakistan, meat industry plays a vital role in the economy of the country by contributing to food supplies, improving nutritional requirements . The meat demand for Pakistan Domestic market is growing at a rate of 2. 73% for Beef, 2. 90 % for mutton and 6. 10 % for poultry. Given the economic statistics, Pakistan is looking for ways to enter the export marketplace, especially in the Halal marketplace to countries in the Middle East. Livestock population is increasing with a positive annual growth.
The average growth rate of cattle is 2. 4%, buffalo 3. 7%, sheep, 0. 9%, goats 3. 9%. Per capita availability of meat is 20kg per annum. Also, meat prices are expected to rise due to expected supply shortages resulting from the recent flooding. The inflation rate of Pakistan is 13. 4%. With an increase in the recent petroleum prices, the cost of production of the businesses would increase, thereby decreasing the profit margins of the businesses and resulting in further increase in prices. These increased prices are a concern for meat farmers as a large number of farms are being closed rendering hundreds of workers jobless.
Social Factors: According to the present trend and increasing local demand, it is expected in that demand for livestock products will increase at higher rates induced by various factors. The growth in population will bring direct increase in demand for livestock products. Animal based products are required for fulfilling protein and calcium requirements of the population on health grounds.
Third in Pakistan the income elasticity of demand for meat has been greater than unit, implying that with rise per capita income, more than proportionate expansion in demand for animal based products is expected * Changes in consumption patterns induced by rural-urban migration and general development, For instance modernization of cities, introduction of concept of food streets in Islamabad, Lahore and Karachi, increase in number of hotels and restaurants in urban centre sec will also be expected to generate additional demand for animal based products. It is predicted that the demand and supply gap by 2020 of beef will be 2. 31 million tones wile of mutton will be 1. 47 million tons.
Technological Factors: Opportunity for Pakistan to develop its international meat market exists. Pakistan will need to develop separate strategies for its bovine and sheep/goat meat exports. Livestock are currently slaughtered in recognized/unrecognized slaughterhouses and on private premises. They are subject to limited official control by municipality staff.
Lack of suitable slaughtering facilities and unsatisfactory techniques cause considerable losses in meat as well as invaluable by-products like blood, offal’s, hides and skins. Animals are slaughtered in places polluted in blood, intestinal contents and dirty effluents and are not well protected against insects and germs. Meat loses its keeping quality and can become source of bacterial infection and food poisoning. In addition, by-products are not properly handled and instead of being assets are considered a source of annoyance.
