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Proposed Research TopicTo find out the stagnant market share of our product and increasing market share of other brands.

PurposeThe purpose of this study is to find out the potential market of "Langnese" in Karachi.In this study we will try to find out the competitors of "Langnese", their competitive edge, market share and strengths in the market.

IntroductionThe Langnese honey brand was born in 1927 and was accompanied by the classic "fine selection". A short time later the brand was given its characterizing feature: the honey-combed shaped hexagonal glass jar with its gold-colored Langnese lettering and exquisite taste. In 1958, Langnese had a turnover of 6,500 tons of honey and 20 million DM a year. A "masterpiece of nature," Langnese honey is quite simply the perfect harmony between product and brand. Germany's best known and most popular honey, its is also a global brand and is now present in more than 50 countries. In 1997, Langnese launched the first ever honey dispenser known as "bee easy".To achieve the best honey from selected nectar and pollen areas, Langnese maintains connections to selected regions of origins and carefully checks quality assurance using the latest scientific techniques. Honey, a versatile food can be used in many forms. Langnese honey fit perfectly into our diet for use with Cereals, Milk shakes, Deserts, Salads or simply as a spread on bread and sweetener in your tea.The Langnese honey range includes our golden "Natural Bee Honey", the mild "Acacia: and tangy "Forest" and "Black Forest" honey, the "Royal Jelly" and our "Bee easy" honeys.

Slogan The brand that brands for natureHoney is one of the most natural organic foods in the world. And LANGNESE is the brand that leads the world with its divine taste and quality.

Specifications Langnese Honey contains only specially selected honey from the best honey-producing regions of the world All Langnese products undergo the most rigorous quality controls Langnese Honey contains only specially selected honey from the best honey-producing regions of the world In addition to our main laboratory, Langnese runs its own quality control laboratories in the honey-producing countries throughout the world. Meticulous quality control means in excess of 100,000 honey tests every year The Langnese brand has set the standard for purity and high quality since 1927! Langnese is proud to guarantee the strictest German purity standards History The history of the traditional company Langnese honey began at an early summer of 1925: the young Karl importer Rolf Seyferth bought at the Hamburg Exchange 5,000 kg California honey.Spontaneously - because the manager of the "German-Chinese egg products company" had been to do with honey or anything.But contrary to expectations - after initial setbacks - the business flourished and demand rose.From the impulsive start of the stock market developed after two years in a thriving honey trade.

The birth of the brandSlowly it was time for a brand name that customersshould whet your appetite.Therefore, Karl Rolf Seyferth 1927 advertisedin the "Hamburger Fremdenblatt" that he was looking for a shell company.

The export businessman Viktor Emil Henry (VEH) Lagnese was interested most.At that time a biscuit factory in Hamburg withgood reputations was running.He was known for high quality, greatcommitment and would fit so well Seyferths honey.He and Seyferth met in a hamburger gourmet restaurant.He clear that his name only in good hands,remember to put.After agreement the brand "Langnese Honey" was born.

A distinctive appearanceA branded product requires a suitable and especiallydistinctive appearance.Already in the 30swas Seyferth developed the typical HB's glass.Honey combed the 6-corner shape and the slantedLangnese logo in conjunction with the color gold, the HBs honey does stillan eye-catcher on the shelf.On the way to brand products1948, when everything was in ruins, the Marshall Plan broughtthe hamburgers a boatload of honey.Mr. Seyferthrecognized the opportunity and temporarily installed in the basement of a Hamburg company has a bottling plant.As of 1950, the systematic development work.From Langnese honey, a brand with consistenthigh quality and taste. Langnese acquired own apiaries in Guatemala, Salvador andMexico and established comprehensive quality control.Moreover Langnese led for months taste testsby food businesses with owners and customers.Thus arose eventually with hard work, skill and a keen sense ofthe optimal HB's recipe.Investments had paid off: In 1958 wasLangnese honey leader with 6,500 tons and aturnover of 20 million DM in 1965 the company moved to the smalltown Bargteheide, north of Hamburg.

Research Objective Repositioning of "Langnese" as a house hold brand. Study the current market position of "Langnese" with respect to competing brands. In the last few years we have noticed that many new brands (local and international) have been introduced in the market and captured a value able part of market share. To get understanding of consumer purchase decision. To increase market share of (Langnese) by suggesting various options related to sales promotion and advertising. Company should introduce innovative media vehicle, suggest branded honey which promote this brand as a daily household usage brand.

Hypothesis

If a product having high market growth /share then becomes stagnant or decline due to increase rate of new competing product.

RESEARCH METHODOLOGY

Langnese is a household food product. Personal survey is categorically the best fit. However, being more precise and absolute survey will be the best match for this particular brand. Langnese is a natural product, carefully harvested and bottled to preserve the quality to enjoy for all age groups. As the brand has an essence of domestic household consumption so other methods like telephone, mail and electronic surveys will not be viable and genuine.Methods are the ways that you adobe you approach your respondents. They are called method of data collection as well as method of administration.

To approach our target respondents and to record their responses we have used questioners as a tool of data collection. We have personally visited 50 different retail outlets in 07 measure areas of Karachi following are the areas, we have covered in this study.

1- Gulshan-e-Iqbal2- North Nazimabad3- Water Pump4- Federal B.Area5- Gulistan-e-Johar6- Gol Market7- Gulberg

Q: 1 What brands of honey are available at your store?

Brands AvailableNo. of Shops

Billy Bee29

Sue Bee34

Pak Honey37

Darba Diabetiker3

Salman's68

Golden Country2

Hamdard 26

Youngs 22

Langnese98

Others21

During this study we have personally visited fifty different outlets in seven different areas. We have used questionnaire to record the responses. The brands available are Billy Bee, Sue Bee, Pak Honey, Darba Diabetiker, Salman's, Golden Country, Hamdard, Youngs, Langnese and others. Q: 2 Average monthly sale of different brands?

Billy Bee

SalesNo.Of Shops

(0-9)17

(10-18)1

(19-30)1

(above 30)0

Total19

In order to get a closer insight of our and our competitor's performance we have recorded the average monthly sales of the above stated brands. In this part of study we find out that the average monthly sale of 19 stores lies between 0-09 bottles, while 1 store sells 10-18 bottles and 1 store sells 19-30 bottles every month.

Sue Bee

SalesNo. of Shops

(0-09)15

(10-18)1

(19-30)1

(above 30)0

Total17

Out of 50 retail outlets average monthly sale of 17 stores lies between 0-09 bottles, while10-18 and 19-30 bottles are sold on 1 stores every month.

Pak Honey

SalesNo.Of Shops

(0-09)8

(10-18)6

(19-30)3

(above 30)2

Total18

Average monthly sale of Salman's honey on 8 stores lies between 0-09 bottles, while 6 stores sell 10-18, 3 stores sell 19-30 and 2 stores sell more than 30 bottle every month.

Darba Diabetiker

SalesNo.Of Shops

(0-09)2

(10-18)0

(19-30)0

(above 30)0

Total2

Out of 50 retail out lets average monthly sale of only 2 stores lies between 0-09 bottles.

Salmans

SalesNo.Of Shops

(0-09)25

(10-18)7

(19-30)4

(above 30)2

Total38

Average monthly sale of Salman's honey on 25 stores lies between 0-09 bottles, while 7 stores sell 10-18, 4 stores sell 19-30 and 2 stores sell more than 30 bottles every month.Salman's is the closest competitor of Langnese.

Golden Country

SalesNo.Of Shops

(0-09)2

(10-18)0

(19-30)0

(above 30)0

Total2

Average monthly sale of Golden Country on 2 different stores lies between 0-09 bottles every month.

Hamdard

SalesNo.Of Shops

(0-09)11

(10-18)3

(19-30)2

(above 30)0

Total16

The average monthly sale of Hamdard on 11 different outlets lies between 0-09, while on 3 and 2 store's average monthly sale lie between 10-18 and 19-30 bottles.

Youngs

SalesNo.Of Shops

(0-09)9

(10-18)1

(19-30)1

(above 30)0

Total11

The average monthly sale of Youngs on 9 different outlets lie between 0-09, while the sale of 1 stores lie between 10-18, sale of 1 store lies between 19-30.

Langnese

SalesNo.Of Shops

(0-09)28

(10-18)10

(19-30)4

(above 30)6

Total48

Out of 50 retail out lets average monthly sale of 28 stores lies between 0-09 bottles, while 10, 4 and 6 stores average monthly sale is between 10-18, 19-30 and above 30 respectively.

Others

SalesNo.Of Shops

(0-09)5

(10-18)2

(19-30)2

(above 30)1

Total10

This table includes the data of all other brands, according to this table on 5 stores 0-09 bottles of few different brands sell monthly, while 10-18 bottles sell at 2 outlets, 19-30 bottles sell at 2 outlets and above 30 bottles are sell at only 1 outlet.

Q: 4 what trade promotion scheme you are getting from distributors?

No. Of Shops

Quantity discount 26

cash incentives5

free coupons 0

Nothing19

Total50

As a trade promotion scheme 26 outlets in 7 major areas are getting quantity discounts from the distributors, while 5 are getting cash incentives and 19 are getting nothing as a trade promotion scheme. One more thing that we came across during this study is that all these schemes are offered to the big retailers only and there is no such offer for medium and small retailers.

Q: 5 Like to give front-end shelf space to "Honey"?

No.Of Shops

Yes50

No0

Total50

Out of 50 different outlets we have found that all the available honey brands were very well placed at the front-end shelf space.

Q: 6 Do company share retail promotion cost?

No. Of Shops

Yes0

No50

Total50

The retail promotion cost is shared by none of the honey brands available in the market.

Q: 7 Out of 10 customers, how many inquire "Langnese"?

Customer InquireNo.Of Shops

26

35

416

522

616

711

89

96

103

N/A6

We visited a total of 50 shops. The general outcome of our research after evaluating the customer preferences towards different brands of honey was undoubtedly, in favor of Langnese. Approximately 64% of the total market for honey is dominated by Langnese. The remaining 34% is distributed among other competitors.

Q-8. Competitively Priced?(Langnese)

No.Of Shops

Yes18

No28

N/A4

Total50

Out of 50 outlets, 36% responded favorably towards the product price being competitive, while 56% opposed this view. Some stores did not cooperate and therefore have not been included in the given percentages.

Q: 9 Satisfaction with distribution company?

(A)

Regularity in supply

Yes46

No2

N/A1

The response as far as the efficiency in distribution is concerned, stated 92% positive and 4% negative. The remaining 2% chose not to cooperate. Quantity per demand

Yes 48

No2

(B)

A smashing 96% of the respondents are more than satisfied as far as the quantity per demand goes. However the 4% of the respondents who reacted negatively when asked, complained that quantity supplied by the distributors, given their limited funds was unsuitable for their business. (C)Incentives

Yes10

No40

According to respondents, the majority consensus disagreed with the fact that the distributor provided any incentives (80%). However at the same time the same population also could not deny the fact that they were more than satisfied with the distributor's regularity and efficiency.(D)Response to complaints

Yes39

No11

78% of the respondents agreed with the fact that the distributors responded promptly whenever they had any complaints. 22% however feel neglect from the distributors' response to their complaints. Q: 10 Satisfaction with Brand Management Team?

Regularity

Yes 14

No36

In contrast to other favorable results for Langnese, the response for distributor's regularity in supply was generally negative, in the fact that 72% of the population voted against the regularity factor while a mere 28% were in favor of the notion.

Attitude

Yes23

No27

Out of 50 respondents 23 were comfortable with the attitude of the brand management team while 27 respondents do not have any good experience with them.

Response to compliance

Yes22

No28

22 of the total respondents are satisfied with the responses they get in respect of their complains, while 28 respondents do not support this idea.

Q: 11 What do you suggest to encourage sales of "Langenese"?

Availability5

Advertising46

Consumer Schemes35

Reduce Price44

Improve Quality4

Increase Profit Margin5

Out of total 50 respondents 5 respondents suggest to improve availability, 46 respondents suggest company should launch effective advertising campaigns, 35 suggest company should launch attractive consumer schemes, 44 suggest company should reduce its price in order to cope with the tough competition. 4 respondents suggest that company should improve the quality of their product while 5 respondents suggest increasing their profit margin.

QUESTIONNAIRE FOR RETAILER

Title ____________________________________________________________Avenue ____________________________________________________________ __________________________________________________________Speak to ___________________________________________________________

Q1: How many types of honey available at your store? Langnese

Al-Shifa

American Green

Salmans

Pak Honey

Youngs Honey

Billy Bee

Hamdard Golden Country

Sue Bee

Premium Honey

Darba Diabetiker

Natural Bee

French

Others

Q2: How many consumers of honey do you have? (weekly/monthly/yearly)1 1516 3031 4546 6061 7576 90

Q3: Which brand of honey frequently sale? Langnese

Al-Shifa

American Green

Salmans

Pak Honey

Youngs Honey

Billy Bee

Hamdard Golden Country

Sue Bee

Premium Honey

Darba Diabetiker

Natural Bee

French

Others

Q4: Average monthly sale of different brands? Langnese ____________________

Al-Shifa _____________________

American Green ______________

Salmans ____________________

Pak Honey ___________________

Youngs Honey _______________

Billy Bee_____________________

Hamdard ____________________

Golden Country ______________

Sue Bee _____________________

Premium Honey ______________

Darba Diabetiker _____________

Natural Bee _________________

French ______________________

Others ______________________

Q5: What trade promotion scheme you are getting from distributors?a) Quantity Discountb) Cash Incentivesc) Free Couponsd) Nothing

Q6: Like to give front end shelf space to Honey? Yes NoQ7: Do company share retail promotion cost? Yes No

Q8: Competitively priced Langnese Yes No N/A

Q9: Satisfaction with distribution companies?a) Regularity in Supply Yes No N/Ab) Quantity Per Demand Yes No c) Incentives Yes Nod) Response To Complaint Yes No

Q11: Satisfaction with Brand Management Team?a) Regularity Yes Nob) Attitude Yes Noc) Response To Compliance Yes NoQ12: What do you suggest to encourage sales of Langnese?a) Availability

b) Advertising

c) Consumer Scheme

d) Reduce Price

e) Improve Quality

f) Increase Profit Margin

Q13: Which top three brands of honey most frequently sale at your store? Langnese

Al-Shifa

American Green

Salmans

Pak Honey

Youngs Honey

Billy Bee

Hamdard Golden Country

Sue Bee

Premium Honey

Darba Diabetiker

Natural Bee

French

Others

Q14: Is there more price difference between brands? Yes No

Q15: Why consumers prefer to take brand?______________________________________________________________ ______________________________________________________________

Q16: What factors increase the quality of honey to purchase?a) Quality

b) Price

c) Quantity

d) Packaging

e) Availability

f) Others

QUESTIONNAIRE FOR CONSUMER

Age[18 25] [26 - 35] [36 - 45] [46 - 60] [Age above 60]Gender Male Female Qualification _______________________________________________________

Question 1: What kind of honey do you buy? Langnese

Al-Shifa

American Green

Salmans

Pak Honey

Youngs Honey

Billy Bee

Hamdard Golden Country

Sue Bee

Premium Honey

Darba Diabetiker

Natural Bee

French

Others

Question 2: What are your criteria when purchasing honey?a) Quality

b) Price

c) Flavor

d) The name of producer

e) Origin

f) Type of honey

g) Size/Packaging

Question 3: How often do you buy honey?a) Weekly

b) Monthly

c) Occasionally

d) Never

Question 4: Is the Pakistani origin of honey important for you? Yes No

Question 5: Where do you buy honey?a) Special honey shop

b) Super market

c) Hypermarket

d) Producer

e) Others

Question 6: What is your opinion about the price of honey available in shops?a) Generally cheap

b) Generally acceptable

c) Generally expensive

d) Low quality is expectable

e) Low quality is expensive also

f) I dont know

Question 7: What factors could increase the quantity of honey to be purchased?a) Emphasizing the healthy lifestyle

b) Price discount

c) Improving the assortment of product

d) Improving the number of new products

e) Improving the availability in shop

f) Improving the quality of packaging

EVALUATION & FINDINGSMain findings are as follows: There are several types of honey available in Pakistan, but people dont know too much about them, they consume and purchase only a few of them. Mainly the so-called traditional honey are purchased. Analyzing the variables we didnt find significant differences in the different groups; most important criteria when purchasing honey are quality, price, type of honey and quality of packaging. Most of consumers purchase honey only a few times per year, or monthly and mainly in Superstores or directly from the producer. Emphasizing the healthy lifestyle and Price discount factors could mostly motivate people to buy more honey.

CONCLUSIONDuring this study we come to know that there is a stagnant market of honey users in our country, honey is commonly used as a medicine and many new brands have been introduced in last few years. Langnese still have the highest market share and highest brand image in the minds of customers. The closest competitor of Langnese is Salman's and therefore provides the main threat to the market share of Langnese. Recommendation

1- We should reposition our product as a daily household usage brand. 2- We should adopt sales-push strategy to regain the market share by offering new consumer schemes and increase retailer's profit margin.3- Launch new advertising campaign focusing on the new usage of product such as honey should use in daily breakfast.4- New and aggressive consumer schemes should be launched to increase market share.

REFERENCES

INTERNEThttp://www.langnese-honig.de/en/our-company/81.html