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K&N’s Case study
Marketing Strategies

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Presented to: Dr. Javed Iqbal
Presented by: Sana Gulshan (MBA-12-04)
DEPARTMENT OF BUSINESS ADMINISTRATION
BAHAUDDIN ZAKARIYA UNIVERSITY
SUB CAMPUS SAHIWAL

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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. 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. This was planned in 1964 when 80% of the ailing
children were suffering from the diseases caused by protein, vitamins and minerals deficiency.
K&Ns was established to overcome this malnutrition by a college student Khalil Sattar who had
a vision to foresee a need to establish a poultry farm. The Company was the first to establish an
integrated broiler production and processing operation in Pakistan. Currently K&N’s has six
broiler growing facilities, each with a capacity for 250,000 to 300,000 birds. K&N’s uses best-in-
class equipment supplied by world-leading equipment manufacturers from Europe and USA.
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
Macro almost 75% people buy this brand.
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 food. 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.

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Products Table:
Haray Bharay Nuggets
K&N's
Price $ 3.96
Price Rs 396
Kofta K&N's
Price $ 3.96
Price Rs 396
Seekh Kabab K&N's
Price $ 3.96
Price Rs 396
Tender Pops K&N's
Price $ 3.91
Price Rs 391
Fun Nuggets K&N's
Price $ 3.59
Price Rs 359
Chicken Tempura K&N's
Price $ 3.96
Price Rs 396
Croquettes K&N's
Price $ 3.96
Price Rs 396
Chapli Kabab K&N's
Price $ 3.59
Price Rs 359
Burger Patties K&N's
Price $ 3.5
Price Rs 350
Marketing Strategies:
K&N’s is one of a kind in Pakistan and has come forward with a new perspective about frozen
food in our society. The company implements the marketing strategy with immense skill and
understanding about the Pakistani society and is therefore successful amongst the masses that
it targets. Upon conducting a research it was identified that the brand name of K&N’s has
become so strong that advertising on TV is not only the reason for the purchase of the
products. It is all dependent on the marketing strategies that were employed at the time when
K&N’s penetrated the consumer food items market.
Impulse purchase strategy:
K&N’S has created an image in customers mind like they just go to the K&N’S retail store and
can’t resist themselves without doing impulse purchases because of attractive store layouts
,well organized stores and catalogs & websites.

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Distribution:
After the product development of K&N’s it is distributed into the market for the satisfaction
and attraction of our consumers. K&N’s manages its own product distribution and a chain of
chicken stores for its range of chicken products.
Distribution Channel of K&N’s:
K&N’s sell directly to retailers, sell through distributors which sell a broad range of products to
many retailers, sell through captive distributors which sell a broad range of products to one
chain of retailers and sell through distributors, which sell to our targeted customers.
Diagram:

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K&N’s retailing:
Retailing is the last stage in the channel of distribution. K&N’s have its own retailing stores in 24
Cities of Pakistan. Total number of Stores is 84.
K&N’s Retail Functions:
 The manufacturers of K&N’s sell their inventory and items to retailers every area of
Karachi than the consumers easily choose from variety of products and purchase in
limited or in bulk form.
 K&N’s chicken products are available at K&N’s Chicken Stores and leading retailers and
also delivered to quality and food-safety conscious institutions such as hotels,
restaurants, airlines, clubs and international restaurant chains.
 Retailers also contact with customers who have K&N’s way to club membership cards
according to their purchases.
 Retailers contact manufacturers about the availability of K&N’s products to maintain the
brand name and make it easy for customers to get their desired products.
 K&N’s retailers look after customer complaints and delivery delays by informing
manufacturers.
Promotion:
Quantity discount by offering “buy one get one free” offers and launched their product in
almost all the parts of the country with almost the same prices. In time pricing it lower its prices
according to different seasons and reduce prices in Ramadan season, as its demand is more in
that season. Promotional pricing strategy involves temporary lowering of the prices of the
product below the cost to increase the short run sales. In Freight absorption strategy it do not
add freight charges to its product price in order to keep its product price lower, as its focus is to
capture more customers.
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.
Promotion Strategies:
K&N’s use different promotional tools such as advertisements, sale promotions, public
relations, personal selling and direct marketing.

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Advertisements:
K&N’s use informative and persuasive advertising to introduce a new product and maintain
competition in the market.
For example when K&Ns launches Deli Line, advertising strategy was to target households and
broadcast a family oriented advertisement. Our purpose was to realize that K&N’s is regarded
as the breakfast needed for “Active Start of the Day”. The products of Deli Line are easy to use,
reliable and easily available with great taste and reasonable prices. K&N’s has shown sensitivity
to the Muslim requirements of halal food products and introduced its Deli Line so that the
people have no more doubts and are comfortable consuming the skinless sausages, cold cuts
and smoked meat.
When K&Ns launches fun nuggets, it targets children and advertises about animal shaped
nuggets, providing free "D Land" mugs as a reward for the children.
K&N presents its new chicken stock with its intricate flavors through the 'Safe and healthy
stock' campaign.
Expansion triggered by Bird Flu:
The expansion had been triggered by high prices following the drastic drop in production in
2004/05 when Pakistan suffered badly from bird flu. In 2007 Pakistan was one of the top 10
poultry producers in the world with over eight million broiler parent stock producing more than
800 million birds a year. With over production in 2007/8 and a reported bird flu case in a
remote area, poultry prices crashed once again. Add to this a 68 per cent increase in feed cost
and heavy losses were made with a 40 per cent reduction in production in 2008/09.
Cobb Agreement:
In 2008 K&N’s reached an agreement to become a Cobb grandparent franchise producing
Cobb 500 parent stock for their own breeding program and supplying other breeding
companies to help rebuild the industry. The Cobb 500 broilers are grown to 36 days, averaging
1.87kg with a 1.75 to 1.85 feed conversion ratio.
K&N’s Foods the leading broiler producer in Pakistan has initiated a processing enterprise in
New York State. The company has purchased and renovated a Birds Eye plant and it is expected
that 200 new jobs will be created.In 2011/12 K&N’s expects to produce 80 million layer and
broiler chicks.In 2012 Pakistan imported 8 million worth of live poultry, mostly grandparent
stock. The United States provided more than 3 million of these imports with the balance
coming from France 2 million and UK with 1 million.

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Intriguing Questions:
 What do you think which strategies help K&N’s to achieve competitive advantage?
 “Birds flu triggers the expansion of K&N’s”. Comment on this statement.
 How K&N’s make it advertising effect to target customer?