INTRODUCING BAIRAHA CREAMY CHICKEN

BAIRAHA FARMS PLC

KALPAVITHANAGE MANUSHI THILANGIKA KALPAGE

CARDIFF MET ID: 20151691
Executive summary
Bairaha is a leading brand in the poultry industry for over four decays. Bairaha Farms PLC has
majorly two types of consumers. Namely, boiler one day old chicks and chicken and processed
products. Bairaha Farms PLC has a very strong customer base in one day old chicks segment.
Therefore, Bairaha farms has to focus more on chicken and chicken meat base processed
products. Due to the increasing demand for chicken meat base products, Bairaha Farms PLC
has come up with various processed foods like sausages, meat balls, burger slices, sandwich
slices, marinated food, etc. Due to the busy lifestyles, people are looking for shortcuts to do
their day to day activities. As a result of that Bairaha Farms PLC has to develop new products
and update their existing products in order to satisfy the altering consumer needs.
Bairaha Farms PLC has a very strong customer base in both modern trade and general trade.
When analyzing the processed chicken product consumption, it was noted that most of the low
weight ranges are purchased by general trade customers and most of the middle weight ranges
are purchased by modern trade customer. Even though the consumption of the sandwich bread
in Sri Lanka is higher than the burger consumption, the company experienced a higher sales
volume in burger slices than sandwich slices. According to the livestock statistical bulletin, it
was realized that the demand for the processed products will increase in the future. Base on
those details marketing research was done and found some consumer unmet needs which can
be satisfied via a spreadable chicken product named as Creamy chicken. Creamy chicken will
set “Bairaha” apart from the competition and grow top-line, bottom-line, and market share in
the next two years due to its unique features. Customers could be able to have a nutritious
chicken spread to prepare their sandwiches, pasta and salads at an affordable price, due to this
new product development by Bairaha Farms PLC. Availability in both modern trade and
general trade, available in different weight ranges and price affordability will make “Bairaha
Creamy Chicken” as the most preferred brand of customers in the future and hence Bairaha
farms PLC could be able to achieve its marketing objectives via this new product development.

1|Page
Contents
Executive summary.................................................................................................................... 1
List of figures ............................................................................................................................. 3
List of tables ............................................................................................................................... 3
1. Current position of the brand .............................................................................................. 4
1.1 Introduction to brand ................................................................................................... 4
1.2 Market analysis ........................................................................................................... 5
1.3 Customer analysis ....................................................................................................... 6
1.4 Competitor analysis ..................................................................................................... 7
1.5 KPI review of Bairaha Farms PLC ............................................................................. 8
2. PESTLE analysis ................................................................................................................ 9
3. Porter’s five forces model................................................................................................. 11
4. SWOT analysis ................................................................................................................. 12
5. Opportunity for growth ..................................................................................................... 14
6. Need gap analysis ............................................................................................................. 15
7. Marketing objectives ........................................................................................................ 16
8. Marketing strategy ............................................................................................................ 16
8.1 Marketing strategy: segmenting and targeting .......................................................... 17
8.2 Positioning map ......................................................................................................... 18
8.3 Marketing strategy: Positioning ................................................................................ 18
8.3.1 Product ............................................................................................................... 18
8.3.2 Price ................................................................................................................... 19
8.3.3 Place ................................................................................................................... 19
8.3.4 Promotion........................................................................................................... 20
9 Execution Plan .................................................................................................................. 21
10 Marketing budget .......................................................................................................... 22
11 Forecasted financials ..................................................................................................... 23
11.1 Sales forecast ................................................................................................................ 23
11.1 Revenue forecast ....................................................................................................... 24
12 Conclusion .................................................................................................................... 25
References ................................................................................................................................ 26
Appendix 1: Questionnaire ...................................................................................................... 27
Appendix 2: Marketing survey ................................................................................................ 28

2|Page
List of figures
Figure 1: Processed chicken product ranges of "Bairaha" ......................................................... 4
Figure 2: Meat production in Sri Lanka (Year: 2017) ............................................................... 5
Figure 3: Processed chicken product consumption in Sri Lanka (Year 2017) .......................... 5
Figure 4: Weight analysis of processed chicken of "Bairaha"(Year: 2017/18) ......................... 6
Figure 5: Chicken sausage purchasing behavior of "Bairaha" (Year: 2017/18) ........................ 6
Figure 6: PESTLE factors ........................................................................................................ 10
Figure 7: Porter’s five forces model ........................................................................................ 11
Figure 8: SWOT analysis ......................................................................................................... 12
Figure 9: Preference to creamy chicken according to the marketing research ........................ 15
Figure 10: Chicken meat base product consumption according to the marketing research..... 15
Figure 11: Marketing objectives .............................................................................................. 16
Figure 12: Ansoff Matrix ......................................................................................................... 16
Figure 13: Position map ........................................................................................................... 18
Figure 14: Creamy chicken 250g packet ................................................................................. 23
Figure 15: Forecasted financial of Bairaha Farms PLC........................................................... 24
Figure 16: Customer interviewed at Cargills Food City Wadduwa ......................................... 28
Figure 17: Customer interviewed at Keells Super Kalutara .................................................... 28
Figure 18: Customer interviwed at Arpico Supercentre Kalutara North ................................. 28

List of tables
Table 1: Competitor analysis of "Bairaha" ................................................................................ 7
Table 2: KPI review of Bairaha Farms PLC .............................................................................. 8
Table 3: Chicken meat consumption of Sri Lanka................................................................... 14
Table 4: Chicken meat base product consumption growth in Sri Lanka ................................. 14
Table 5: Chicken meat base product consumption forecast..................................................... 14
Table 6: Segmenting and targeting the market ........................................................................ 17
Table 7: Weight analysis of the Creamy chicken .................................................................... 18
Table 8: Price analysis of the Creamy chicken ........................................................................ 19
Table 9: Trade analysis of Creamy chicken ............................................................................. 19
Table 10: Marketing budget of Bairaha Farms PLC for the FY2019/20 and FY2020/21 ....... 22
Table 11: Sales forecast of Creamy chicken ............................................................................ 23
Table 12: Revenue forecast of Bairaha Farms PLC................................................................. 24

3|Page
1. Current position of the brand
1.1 Introduction to brand
“Bairaha” is a well-known brand for chicken processing in Sri Lanka for over four decades.
Bairaha Farms PLC is always looking for consumer insights and try to develop new products
and upgrade their existing products to meet their consumers’ unmet needs. Recently introduced
marinated products are the best examples which proves that Bairaha Farms PLC is highly
concentrated on their consumer unmet needs (Bairaha.com, 2019).

Figure 1: Processed chicken product ranges of "Bairaha"

4|Page
1.2 Market analysis
According to the Livestock Statistical Bulletin 2017, chicken consumption (200,980 MT) was
83.6% of the total meat consumption, which means that most of the Sri Lankans consumes
chicken than other meats. Because, religious and associated cultural beliefs have a strong
impact on the type of meat consume by Sri Lankans (Silva, et al., 2010).

Meat Production in Sri Lanka

0.72%
12.39%
3.28%

83.60%

Chicken Pork Beef Mutton

Figure 2: Meat production in Sri Lanka (Year: 2017)

According to the Livestock Statistical Bulletin 2017, chicken meat based value added
production of the year 2017 was 14,970.07 MT, which is 7.44 % of the total chicken meat
production. The contribution from each value added product was as follows.

Chicken meat based value added production

22.09%

11.50%
66.41%

Chicken sausages Chicken meat balls other further processed chicken

Figure 3: Processed chicken product consumption in Sri Lanka (Year 2017)

Chicken sausage is the most consumed chicken meat based value added production in Sri
Lanka. Time taken for cooking and the ability to eat with both rice and bread can be considered
as the reasons for this.

5|Page
1.3 Customer analysis
The company has two types of customers.
1. Boiler one day old chicks
2. Chicken and packaged products
The company has a very strong customer base in boiler one day old chicks. Therefore, the
company has to focus more on chicken and packaged products. According to marketing
department’s statistical data, buying behavior of “Bairaha” processed chicken in Sri Lanka
during 2017-2018 financial year was as follows.

Weight analysis of processed chicken

Marinates Burger slices
5% 6%
Catering sausages
Sandwich slices
1% Catering sausages
Chicken saudages 58%
Meat balls
11%
Bockwoust and cheese
and onion sausages Bockwoust and
Meat balls cheese and onion
sausages
2%
Sandwich slices
Chicken saudages
17%

Figure 4: Weight analysis of processed chicken of "Bairaha"(Year: 2017/18)

According to the above analysis, it can conclude that the consumer has a higher preference to
buy sausages and meat balls than other processed foods. Also, it can be seen that consumer
preference for burger slices is higher than the sandwich slices.

Chicken sausage purchasing behavior

100.00%

50.00%

0.00%
70g 80g 150g 300g 500g
General trade consumption percentage Modern trade consumption percentage

Figure 5: Chicken sausage purchasing behavior of "Bairaha" (Year: 2017/18)

According to the above graph, it can conclude that most of the middle weight ranges of
sausages were purchased by modern trade customers and most of the lower weight ranges of
sausages were purchased by general trade customers. Also, it was noticed that, higher weight
range (1kg) is purchased by food service sectors (e.g. restaurants, bakeries, hotels etc.) and for
special occasions at households.

6|Page
1.4 Competitor analysis
The company considers Crysbro, Prima, Maxies and Nelna brands as its key competitors in
chicken and packaged product segment.

Category

Availability  Keells  Keells  Keells  Retail  Arpico

or Super Super Super sellers Super
Distribution  Arpico  Arpico  Arpico center
Super Super Super  Lanka
center center center Sathosa
 Laugfs  Laugfs  Laugfs  Retail
Super Super Super sellers
market market market
 Cargills  Cargills  Cargills
Foodcity Foodcity Foodcity
 Lanka  Lanka  Lanka
Sathosa Sathosa Sathosa
 Retail  Retail  Retail
sellers sellers sellers
Product  Whole  Whole  Whole  Whole  Whole
range chicken chicken chicken chicken chicken
 Chicken  Chicken  Chicken  Chicken  Chicken
parts parts parts parts parts
 Processed  Processed  Processe  Processed
chicken chicken d chicken chicken
Market 25% 18% 21% 8% 6.5%
share
MRP price
of 1kg of
whole
chicken
(LKR)
skinless 540.00 530.00 540.00 520.00 560.00
Skin on 445.00 445.00 445.00 425.00 420.00

Table 1: Competitor analysis of "Bairaha"

7|Page
1.5 KPI review of Bairaha Farms PLC
According to the annual reports, KPI of the Bairaha Farms PLC was as follows.
Year ended at
2016/2017 2017/2018 2018/2019(Expected)
March 31st
Revenue(LKR) 3,025,521,000.00 2,995,778,458.00 3,035,445,000.00
Revenue growth
-0.98% 1.32%
%
Profit before tax
(including other
operating 767,896,000.00 353,183,000.00 378,433,000.00
income and
expenses)(LKR)
Profit before tax
-54.01% 7.15%
growth %
Table 2: KPI review of Bairaha Farms PLC

In 2017, the company experienced a 0.98% decrease in revenue and 54.01% decrease in
profit before TAX. According to annual reports, decreased prices and decreased volume in
one day old chicks, chicken meat and process chicken products are the main reasons for
Revenue drop. Also the company experienced a higher operating income due to increase in
dividend income from subsidiaries and the gain on disposal of its stake on Hill Country Farms
Ltd in the year 2016/2017. This is the main reason for decrement in profit before tax in the
FY2017/2018. Management expected a 1.32% sales revenue growth and 7.15% profit before
tax growth in 2018/2019. Because they have focused more on sales and also they have put
their maximum effort to bring down the administrative, distribution and selling cost
during this year.

8|Page
2. PESTLE analysis
“PESTEL analysis is used to determine to what extent macro environmental conditions are
appropriate to realize the goals and targets of company” (Yüksel, 2012)

Political factors
 Even though the company produces essential food, it is highly taxed by the government
compared to fisheries and other livestock industries. Since the chicken meat price is
low compared to all other live stocks, this government taxation behavior adversely
affects the profitability of the company.
 The Government procedure towards “SENA” caterpillars’ attack in maize production
is the most recent political factor which affects the poultry industry adversely. Because
government doesn’t take necessary steps immediately to curb the menace.
 Not only that, but also the government’s inability to provide import permits for essential
raw materials on time has adversely affected the poultry industry, the increased raw
material cost has a direct impact on the company profitability.
Economic factors
 Increasing export expenditure is an adverse economic factor for the poultry industry.
Because the profit margin of the company reduces due high export cost.
 Depreciation of rupee value impacts all industries in Sri Lanka. As the Dollar rate of
Sri Lanka increase rapidly, the company has to spend more Sri Lankan Rupees
compared previous year for purchasing the same amount of raw materials. The
company has to bear the loss due to the depreciation of Rupee value as it can’t increase
the products’ price rapidly.
 As a result of increased per capita income, purchasing power of the consumers’ will
increase. This economic factor affects company favorably, because demand for the
products will increase due to the higher purchasing power and hence revenue of the
company will increase.
Social factors
 Sri Lankan population growth is a favorable social factor for the company, because the
opportunity for growth will increase as the population increase.
 Increasing the annual urbanization rate is a favorable factor for the company. Because
this will reduce the distribution and selling expenditures, as the most of the dealer
networks of Bairaha Farms PLC are spread in urban areas.
 Religious concerns affect favorable to the company. Most of the Buddhists and Hindus
resist to eat beef and most of the Muslims resist to eat pork, therefore the impact of
religion to eat chicken is relatively low when compared to other meat types.
 Busy lifestyles are a favorable social factor to the company because the demand for
marinated and processed food increase, as customers have very limited time for their
meal preparation.

9|Page
Technological factors
 Increasing social media usage has favorably affected the company. Due to this
promotion cost of the company will reduce. Therefore, the cost of marketing will reduce
and hence the profit will increase.
 The computer literacy increment and mobile penetration rate increment are favorable
factors for the company, because modern trade online shopping will increase as the
computer literacy and mobile penetration increases.
Legal factors
 Standards and requirement for supply food and beverages to local and export market
has adversely affected the Barihara Farms PLC, because the time taken for obtaining
these standards is typically high. Therefore, the company will experience a delay in
their proposed progress due to these effects.
Environmental factors
 “Sena” caterpillar attack to maize production is the most recent environmental factor
which adversely affect the company. Because, due to Maize scarcity in Sri Lanka, the
company has to import maize to poultry feed. Due to the government barriers, the
company couldn’t be able to receive maize on time and hence will experience a delay
in supplying products to the market.
 Avian influence adversely affects the company, because consumers will refuse to eat
chicken when avian influence spread over the country. As a result of this, company
experience a decrease in sales and also the company will lose money due to the
increased number of chicks’ deaths per a day.
 Natural disasters like flood and drought adversely affect the company, because this will
affect the life expectancy of chicks.

Figure 6: PESTLE factors

10 | P a g e
3. Porter’s five forces model
In order to analyze the influence of the competitive market forces, Porter’s five forces model
can be used. The bargaining power of buyers, bargaining power of suppliers, the threat of new
entrants, threat of substitutes and rivalry among competitors are the five market forces which
create marketing issues in the company (Oliveira, et al., 2015)
Bargaining power of buyers
 Due to the high number of competitors in the industry, buyers have a high bargaining
power, and they are more likely to make purchasing decision based on price.
Bargaining power of suppliers
 Due to the limitations on importing maize, industry has to purchase maize from local
suppliers even importing price is lower than the local price. Therefore, local suppliers
of maize have a higher bargaining power which will affect the company profit
adversely.
Threat of new entrants
 Due to the limited capital requirement for entering the industry, most of the new
entrants come into the industry. Due low entry and exit barriers, new entrants to the
industry increased. Therefore, competition on pricing will arise when new entrants sell
product at a lower price in order to penetrate the market.
Threat of new substitutes
 Since the prices of soya meat and canned salmon is low compared to the chicken
prices, buyers will move to purchase these substitutes instead of chicken
Rivalry among competitors
 Competitors in the industry are extremely high, this will affect the profitability, sales
and market share of the company

Figure 7: Porter’s five forces model

11 | P a g e
4. SWOT analysis

Figure 8: SWOT analysis

SWOT analysis consists of 4 groups of factors which affects the activities of the company.
Strengths
 Brand reputation of the company
The company has a very strong brand reputation and “Bairaha” brand is recognized as
a most valuable Sri Lankan brand of the year 2018.
 Highly skilled staff
Managers and employees of the company have a great experience and knowledge
regarding the poultry industry
 Strong dealer network
By using the modern trade as well as general trade, company distributes its chicken
and processed products island wide. Keells Super, Arpico Supercenter, Cargills Food
city, Laugfs Supermarket are the strongest authorized retailers of “Bairaha” products
in the modern trade.
 Local and international standards compatibility
“Bairaha” has acquired ISO, SLAB, HALAL, HACCP, GMP and MGMT
accreditations to prove super quality of their products.
 Modern infrastructure and facilities
Due to the modern technologies used by the company, productivity of the company
has increased compared to traditional technologies.

12 | P a g e
Weaknesses
 Awareness on marinated foods among customers is low
The customers’ awareness of the marinated foods in the markets is low. Because the
company has done most of the promotional campaigns through internet to promote
this product. Not only that, but also the pausing of “Bairaha Rasa Recipe” TV program
has impacted on customer awareness adversely.
 Slow progress in implementing new initiatives
Nearly 50% of the total employees have worked more than 5 years in the Bairaha
Farms PLC. Therefore, implementing new initiatives is challengeable. Because old
employees resist to adopt new initiatives and change their traditional flow.
 Slow progress towards the green concept
The company has a less concern about the environmental impact of their polythene
consumption for packaging. This will adversely affect company sustainable
development.
Opportunities
 Increasing per capita income in Sri Lanka
 Increasing population growth in Sri Lanka
 Busy lifestyles provides opportunity to expand the product portfolio of precooked food
 Increasing urbanization percentage in Sri Lanka
 Less religious concern on chicken than other meats
 Social media usage increment
 Utilization rate of mobile phones and computers increment
 Current modern trade purchasing trend
Threats
 Higher taxation on chicken meat than other livestock
 Limitations in importing necessary raw materials like maize
 “Sena” caterpillar attack to maize production in Sri Lanka
 Avian Influence effect on production
 Natural disasters like droughts and flood
 Depreciation of rupee value and high inflation rate
 Intense competition in the industry
According to the SWOT analysis, it can conclude that external environment contains many
threats and opportunities for the implementation of the strategic plan of the company and also
the company has to provide necessary solutions to their weakness.

13 | P a g e
5. Opportunity for growth
According to Livestock Statistical Bulletin, Chicken consumption of Sri Lanka during the last
five years was as follows.

Year 2013 2014 2015 2016 2017

Chicken meat
144.54 150.32 164.45 182.69 200.98
consumption('000MT)
Chicken meat consumption
4.00% 9.40% 11.09% 10.01%
growth
Table 3: Chicken meat consumption of Sri Lanka
According to above analysis, it can conclude that chicken meat consumption of Sri Lanka is
increasing continuously.

Year 2015 2016 2017

Chicken meat
164.45 182.69 200.98
consumption('000MT)
Chicken meat consumption
9.40% 11.09% 10.01%
growth%
Total chicken meat base products
11,825.03 12605.51 14970.07
consumption(MT)
Total chicken meat base products
6.60% 18.76%
consumption growth%
Table 4: Chicken meat base product consumption growth in Sri Lanka
According to the above analysis, it can conclude that chicken meat base product consumption
in Sri Lanka is increasing rapidly. Because even though the chicken meat consumption, year-
on-year growth in 2017 is less than 2016, chicken meat base production, year-on-year growth
in 2017 has tripled with respect to the year 2016. The main reason for this can be considered
as the busy lifestyles of people. It can be expect an average of 10% year-on-year growth in
chicken meat base production during next two years.

Year 2019 2020

Total expected chicken meat base
16467.08 18113.78
product consumption(MT)
Table 5: Chicken meat base product consumption forecast

Therefore, the company has the opportunity to cater this processed chicken requirement
of customers in next two financial years.

14 | P a g e
 6. Need gap analysis
Even though the consumption of sandwich bread in Sri Lanka is higher than the burger
consumption, the company experienced a higher sale in burger slices when compared to
sandwich slices. Also on the other hand company has the opportunity for growth in chicken
meat base products in the coming years. Therefore, a marketing research was done based on
these two factors.
Through the marketing research, it was identified that the customers have a need for something
spreadable in order to make their sandwiches other than slices. Because during the research
most of the mothers mentioned that their children are used to eat the chicken slice only and
throw bread slices when they prepare sandwiches using chicken slices. Most of them are
looking for something nutritious at an affordable price, because the existing price of 150g
sandwich slices packet is 220.00 LKR and have 10 slices which is capable of preparing 10
sandwiches. Also, it was noted that there is a requirement for creamy chicken for preparing
pasta, salads etc. in the market.

Chicken meat based prodcut Preference to consume creamy

consumption chicken instead of chicken slices
16.67% 24.77%

83.33% 75.23%

Consume chicken meat and processed Prefer to consume creamy chicken

chicken products instead ofchicken slices only
Consume chicken meat only Prefer to consume chicken slices only

Figure 10: Chicken meat base product Figure 9: Preference to creamy chicken
consumption according to the marketing according to the marketing research
research

15 | P a g e
7. Marketing objectives
Consumer decision behavior has been recognized as an important consideration in marketing
objectives (Carpenter & and Nakamoto, 1996). Based on customer unmet need gaps and
opportunities for growth marketing objectives was developed.

Figure 11: Marketing objectives

8. Marketing strategy
Marketing strategy is the way how the organization going to achieve its marketing objectives.
In order to achieve the above mentioned objectives, it is needed to identify the opportunity for
growth. Ansoff Matrix can be applied to identify the market or product growth in the
organization. (Vrontis, et al., 2006)

Figure 12: Ansoff Matrix

According to the Ansoff Matrix, product development is a process of producing a new product
to the existing market. According to the market survey, there are some consumer unmet needs
which can be satisfied via a new product development. Therefore, it is recommended to develop
a new product in order to achieve above mentioned objectives. Because most successful NPD
depends on a deep understanding of consumer needs (Hoyer, et al., 2010)

16 | P a g e
8.1 Marketing strategy: segmenting and targeting
Market segmentation is a procedure which subdivides consumer population into relatively
homogeneous groups according to their purchasing behavior (Kamakura & Russell, 1989)
After segmenting the market, the company has to make the decision on which and how many
segments it will target. In other words’ company has to identify the customers who share
common needs or characteristics that the company decides to serve (Kotler, 2009)

Table 6: Segmenting and targeting the market

17 | P a g e
8.2 Positioning map

Figure 13: Position map

Since the products ranges of Bairaha are narrow compared to Prima, company has to
develop new products to satisfy consumer unmet needs to position it as top brand in the
market.
8.3 Marketing strategy: Positioning
To position a product in the market, 4 Ps should take into account. When trying to optimize the
performance of a product, it is needed to employ the 4 Ps-Product, Price, Place and Promotion.
(Jager, 2007)
8.3.1 Product
During the marketing research, it was identified that the consumer has the need to have spread
like thing to make their sandwiches instead of chicken slices. Also, it was noted that customers
are willing to have something nutritious to prepare salads and pasta quickly. The value
proposition is the set of benefits or values, product promises to deliver its customer to satisfy
their needs (Armstrong, et al., 2015). Therefore, it is needed to develop a new product which
is capable to satisfy this unmet need of customers. The expected new product has following
unique value proposition.
Unique value proposition: Nutritious creamy chicken to prepare sandwiches, salads and
pasta quickly.
Since this product target the Upper middle class, middle class and lower middle class customers
with busy lifestyles. It is needed to provide this unique value proposition in different weights.

Table 7: Weight analysis of the Creamy chicken

18 | P a g e
8.3.2 Price
Since the price should be affordable to all targeted segments, the expected price for different
weight ranges will be as follows.

Table 8: Price analysis of the Creamy chicken

Proposed pricing strategy is a psychological pricing strategy which inspires the customers to
purchase it. Also, this pricing strategy is affordable to the target segments. This pricing strategy
is comparatively low when compared to Tuna spread prices available in the market. Also, there
is no huge difference between margarine prices in the market and proposed creamy chicken.
Therefore, this pricing strategy will be attractive because of its nutritious valve when compared
to margarine.
8.3.3 Place
The place is a major concern in the proposed marketing strategy. To satisfy the unmet needs
through this unique value proposition in different segments, the company has to use different
distribution channels and dealer networks. Expected trades for the new product distribution
will be as follows.

Table 9: Trade analysis of Creamy chicken

According to the current sausage purchasing behavior of Bairaha, most of the lower weight
range sales are recorded in general trade and middle weight range sales are recorded in modern
trade. Based on that, trade decision has been made for the proposed new product.

19 | P a g e
8.3.4 Promotion
In order to get the company’s new marketing message across the target market, it is necessary
to use proper promotional strategy for each market segment. Since the customer awareness
on existing marinated products are also low, the company has to focus more on promoting
this Creamy chicken product to the market in order to achieve the expected objective.
Above the line advertising
Television and radio: An attractive advertisement which inspires the customers to purchase
the creamy chicken is required. The advertisement should impress the customers that, this
product will make their lives easier while delivering a nutritious and delicious value to them.
The advertisement should be in all languages.
Newspaper: An attractive advertisement can be displayed in the women’s newspapers and
newspapers and magazines related to the food sector in Sri Lanka. In order to create the urgency
of purchasing this product, the advertisement should contain the benefits that the customer gain
compared to other alternatives.
Below the line advertising
Outdoor advertisements: Bill boards and banners can be displayed in urban and rural areas in
order to make customer awareness regarding the new product.
Sponsorships: Company can sponsor several events held in the country and can provide
sandwiches, salads or pasta prepared using creamy chicken to the participants in these events.
The company has the opportunity to provide sample tests to participants in school events, sports
events and special youth events in Sri Lanka.
Food festivals: In annual food festivals, company can give a higher priority to this new creamy
chicken product.
Direct marketing: Company can increase product awareness via Facebook, Twitter, Instagram,
LinkedIn and pamphlets. Not only that, company can use their website to introduce new recipes
using new creamy chicken product.

20 | P a g e
 9 Execution Plan

Activity FY 2019/2020 FY 2020/2021

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
Conduct
trainings for
the sales force
and marketing
department
regarding new
product and
how to promote
it
New product
development
Final approval
and product
launch
Television and
radio
advertising
Newspaper and
magazine
advertisements
BTL marketing
Online
advertising
Marketing
research to
check product
awareness and
customer
feedbacks

21 | P a g e
10 Marketing budget

Table 10: Marketing budget of Bairaha Farms PLC for the FY2019/20 and FY2020/21

 Both ATL and BTL marketing expenses will increase in the next two years because of
the need to increase customer awareness
 It is suggested to spend less with the social media in the second year compared to first
year because of the initiation cost incurred in the first year. Also, it is suggested to spend
the same amount for updating web sites with the newest recipes in both years
 Market research cost for the second year will be high because of the need to identify
the consumer purchasing behavior in advance.

22 | P a g e
11 Forecasted financials
11.1 Sales forecast

Table 11: Sales forecast of Creamy chicken

 Since the new product is expected to launch in the 2nd quarter of the year and people
awareness at the beginning is low, it is expected a higher sales increment in the
FY2020/21 due to the increased product awareness of customers in the second year.

Figure 14: Creamy chicken 250g packet

23 | P a g e
11.1 Revenue forecast
Y0 Y1 Y2
FY2018/19(LKR) FY2019/20(LKR) FY2020/21(LKR)
Revenue 3,035,445,000.00 3,209,445,000.00 3,440,445,000.00
(2,749,837,045.00 (2,905,937,000.00
Less cost of sales (2,610,819,600.00) ) )
Gross Profit 424,625,400.00 459,607,955.00 534,508,000.00
Overheads
Selling and distribution
expenses (140,157,890.00) (148,779,750.00) (166,478,625.00)
Marketing expenses (23,987,900.00) (30,640,000.00) (33,950,000.00)
Admin expenses (169,870,500.00) (185,540,800.00) (217,082,735.00)
EBIT(excluding other
operating income and
expenses) 90,609,110.00 94,647,405.00 116,996,640.00

Revenue growth(KPI) 5.73% 7.20%

Gross profit growth 8.24% 16.30%
EBIT(KPI) 4.46% 23.61%
Table 12: Revenue forecast of Bairaha Farms PLC

Forecasted financials
4,000,000,000.00
3,500,000,000.00
3,000,000,000.00
2,500,000,000.00
2,000,000,000.00
1,500,000,000.00
1,000,000,000.00
500,000,000.00
0.00
FY2018/19 FY2019/20 FY2020/21

Revenue Gross Profit EBIT(excluding other operating income and expenses)

Figure 15: Forecasted financial of Bairaha Farms PLC

 Selling and distribution expenses will increase in the coming years (19% increase in
FY2020/21compared to base year) due to the extra transportation and selling cost of the
new product.
 Marketing expenses will increase in the coming years ( 40% increase in FY2020/21
compared to base year ), because the value proposition of the new product needed to
communicate properly with the customers
 Admin expenses will increase in the coming years (27% increase in FY2020/21
compared to base year) due to the salaries of sales representatives and training cost for
new product promotions

24 | P a g e
12 Conclusion
In order to take the advantage of increasing processed chicken product consumption in Sri
Lanka, the company has to come up with an innovative idea which satisfy the consumer unmet
needs. Since the competition in the market is very high, the value proposition of the company
should be unique and should be able to satisfy consumer essential needs. Creamy chicken will
set “Bairaha” apart from the competition and grow top-line, bottom-line, and market share in
the next two years due to its unique features. Creamy chicken will help the customers to prepare
sandwiches, pasta and salad easily while delivering a high nutritious value. The availability of
a wide range of weights will be an advantage for the company to catch the customers from
lower class to upper middle class. Each and every customer in the target segments could be
able to purchase it due to the price affordability. Availability in the both modern trade and
general trade will favorable for customers to save their purchasing time. Attractive
advertisements will create a pull market for Creamy chicken and will increase market share of
the company within next two years.

25 | P a g e
References
Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction.
Carpenter, G.S. and Nakamoto, K., 1996. Impact of consumer preference formation on
marketing objectives and competitive second mover strategies. Journal of Consumer
Psychology, 5(4), pp.325-358.
Hoyer, W.D., Chandy, R., Dorotic, M., Krafft, M. and Singh, S.S., 2010. Consumer cocreation
in new product development. Journal of service research, 13(3), pp.283-296.
Jager, W., 2007. The four P's in social simulation, a perspective on how marketing could benefit
from the use of social simulation. Journal of Business Research, 60(8), pp.868-875.
Kamakura, W.A. and Russell, G.J., 1989. A probabilistic choice model for market
segmentation and elasticity structure. Journal of marketing research, 26(4), pp.379-390.
Kotler, P., 2009. Marketing management: A south Asian perspective. Pearson Education India.
de Oliveira, C.A., Pivoto, D., Spanhol, C.P. and Dalla Corte, V.F., 2015. Developments and
competitiveness of Mozambican chicken meat industry. Revista de Administração IMED, 5(2),
pp.205-216.
De Silva, P.H.G.J., Atapattu, N.S.B.M. and Sandika, A.L., 2010. A study of the socio-cultural
parameters associated with meat purchasing and consumption pattern: a case of Southern
Province, Sri Lanka. Journal of Agricultural Sciences, 5(2), pp.71-79.
Vrontis, D., Kogetsidis, H. and Stavrou, A., 2006. Strategic marketing planning for a supplier
of liquid food packaging products in Cyprus. Journal of business & industrial marketing, 21(4),
pp.250-261.
Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis.
International Journal of Business and Management, 7(24), p.52. (Yüksel, 2012).
Maxies.lk. (2019). Maxies | Chicken Sri Lanka |Golden Yolk Eggs|Chicken
Portions|Freshest|Finest Chicken|Best Chicken Sri Lanka. [online] Available at:
http://www.maxies.lk/ [Accessed 4 Feb. 2019].
Bairaha Farms PLC, (2018). Annual Report, 2017/18. [online] Available at:
https://cdn.cse.lk/cmt/upload_report_file/452_1533294453846.pdf [Accessed 3 Feb. 2019].
Daph.gov.lk. (2019). DAPH Publications. [online] Available at:
http://www.daph.gov.lk/web/index.php
Statistics.gov.lk. (2019). Income and Expenditure. [online] Available at:
http://www.statistics.gov.lk/page.asp?page=Income%20and%20Expenditure [Accessed 3 Feb.
2019].
Bairaha.com. (2019). Bairaha Farms PLC. [online] Available at: http://www.bairaha.com/
[Accessed 1 Feb. 2019].

26 | P a g e
Appendix 1: Questionnaire
Marketing Questionnaire
1. Name :
2. Age:
3. Income
4. Gender : Male/Female
5. Customer category:
 Modern trade
 General trade
 Food services
6. Do you purchase processed chicken products? (Ex: meat balls, sausages, etc.)?
 Yes
 No
7. If yes why?
 Low cost
 Time effectiveness
 Easiness of preparing
 other
8. What is the most preferred processed chicken brand of you?
 Bairaha
 Maxies
 Prima
 Nelna
 Other
9. Do you prefer to buy chicken sandwich slices?
 Yes
 No
10. If no what is the reason?
 Price
 Limited no: of slices
 Other
11. Do you prefer to buy a creamy chicken instead of slices to make your sandwiches or
to apply as a mixture to make your salads and pasta
 Yes
 No
12. If yes what are the things do you consider when purchasing it?
 Price
 Weight
 Ingredients
 Other

27 | P a g e
Appendix 2: Marketing survey

Figure 16: Customer interviewed at Cargills Food City Wadduwa

Figure 17: Customer interviewed at Keells Super Kalutara

Figure 18: Customer interviewed at Arpico Supercentre Kalutara North

28 | P a g e