Answer to Question #146544 in Marketing for Ali

Question #146544
Being a marketer, you have been assigned with a product launch of a Chocolate milk. Knowing the current situation of Pakistan, you have to analyze and explain,
1
Expert's answer
2020-11-26T07:14:29-0500

The current Pakistan business environment is favored by the Pakistani government approach which favors business activities by encouraging more foreign direct investment (FDI). There a about 5 to 6 main chocolate products and confectionary companies in Pakistan as well as other small suppliers (Companylist, 2020). The chocolate market has been on the growth trajectory owing to the rise in the middle- and upper-income people in Pakistan. As a result, there is more chocolate and chocolate products consumption which may be a good indicator for chocolate milk products.

On the other hand, Pakistan has been faced with numerous operational challenges in relation to the firms in Pakistan. The existence of poor level of infrastructure, energy shortages, poor tax structures, inadequate labor capacity and questionable security structures has been a major setback for most firms (Euromonitor, 2020). These aspects may very well affect any business and the related product to be launched in Pakistan. The low levels of investment in research and development, low patent grants may also discourage any related investments in Pakistan.

A look at the overall chocolate market in Pakistan shows that imported chocolate products are preferred to locally produced chocolate. The import tariffs range from 30% to 45% which are moderate. The traditional target market is the youth and adult consumers who constitute the current largest chocolate market in Pakistan (Dewan, 2017). There currently is a large number of small chocolate retailers in Pakistan pointing to the high number of small-scale consumers of chocolate.

In relation to the Pakistani market in general, there is a reasonably good chance for a successful product launch of chocolate milk. This aspect shall be to a large degree dependent on the target market and increasing disposable income for this consumer segment. The business in question however has to differentiate its chocolate milk products to attract consumer appeal and beat the current competition.


References

Companylist, 2020. Chocolate companies in Pakistan. [Online]

Available at: https://companylist.org/Pakistan/Food_Beverage/Chocolate/

[Accessed November 2020].

Dewan, S., 2017. An Overview of Pakistan Chocolate & Confectionery Market (Branded Segment). [Online]

Available at: https://saifdewan.wordpress.com/2017/03/12/198/

[Accessed November 2020].

Euromonitor, 2020. Business Environment: Pakistan. [Online]

Available at: https://www.euromonitor.com/business-environment-pakistan/report

[Accessed November 2020].


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