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Contents
ABOUT THE COMPANY ....................................................................................................................2 COMPANYS VISION AND MISSION STATEMENT ........................................................................4 THE SALES PLANNING PROCESS ................................................................................................. 14 THE INTERVIEW.............................................................................................................................. 17 SUMMARY ....................................................................................................................................... 26

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ABOUT THE COMPANY

 National Foods Pakistan Limited (NFL), founded in 1970, is today Pakistans leading multi-category Food Company with over 250 different products in 12 categories. It is the only food company in Pakistan to have ISO 9001 and HACCP certifications along with SAP business technology to drive the Companys strong commitment to quality and management excellence. NFL is an international brand sold in over 35 countries. It started out as a Spice company. 3 decades later it has diversified into a versatile Food Company with over 110 products and 165 and above SKUs (Stock Keeping Unit) for the domestic market and over 100 different products for the international markets.

The vision to see National Foods as a professionally managed Human Resource company, set more than 7 years ago, was realized by transforming a local company into a very dynamic and progressive management structure in line with industry practices. The company has more than 1500 employees and operates 6 manufacturing units and 4 warehouses across Pakistan. The product line has now grown to over 300 SKUs in 12 different categories. These are distributed by over 350 distributors in Pakistan and to over 30 distributors across countries worldwide. Competent Human Resources from within the company have fuelled tremendous growth by excelling in Functional Management. Even after 3 decades the company's focal point still remains on Customer's needs through Product development in line with the changing market trends. In this innovative age of ever changing lifestyles, fuelled by the rampant development of technology; consumers have been compelled to change their eating habits. National Foods responds to this challenge of developing innovative food products based on convenience and fast preparation in line 2

with modern lifestyles and yet retains traditional values through its impressive collection of food products. The brand delivers its ultimate promise by consistently delivering value to its consumers. National Foods enriches family relationships by bringing people together for family traditions, feasts, seasonal holidays and of course - everyday life.

COMPANY S VISION AND MISSION STATEMENT

To be a 50 billion food company by the year 2020 in the convenience food segment by launching products and services in the domestic and international

markets that enhance lifestyle and create value for our customers through management excellence at all levels.

Core Values
Passion: the company acts with intense positive energy and is not afraid to take risks. It challenges itself continuously and has pride for what it does.

People-centric: the company puts its people first. Treat them with respect and actively contribute towards their development.

Customer Focus: the company sees the world through the eyes of its customers. It does everything possible to make them happy.

Leadership: the company and its people believe that they are a part of the solution never the problem. They act like owners and a positive influence on others.

Teamwork: their roles are defined, not their responsibilities. They believe in going the extra mile to accomplish their goals. They coach and support each other ensuring everyone wins. The company has a WE versus I mindset.

Ethics: they dont run their business at the cost of human and ethical values. Excellence in execution: We say. We do. We deliver. The people of the company talk with their actions. They strive for nothing but the best. Execution is the key to winning!

Accountability: We see. We act. The people of the company take full responsibility for their actions and results. They dont blame others for their mistakes; they analyze them and correct them.

Brand Pillars
White is the colour of PURITY: purity is their first value, Purity of thought and action, Purity as an uncompromising standard and as a way of life.

The colour red in their logo stands for TRUST: trust placed in them by their customers, trade partners, shareholders and employees; a trust that National Foods Limited has upheld for the past 37 years.

The colour orange in their logo represents their rich HERITAGE: a proud heritage of striving for excellence handed down by their founding generation to the present generation. A belief in their heritage is the strong foundation on which their business continues to grow.

Purple, a colour of life that for them means CONVENIENCE for their customers: convenience is a NFL value. All their products aim to enhance convenience for their customers and their trade partners.

Yellow signifies brightness & for them brightness means INNOVATION: innovation is a key NFL value. Innovation drives their ability to remain contemporary in response to their consumer needs.

Product Line
Chinese Sauces become more and more popular as Chinese food makes the journey from select restaurants to households. With just the right taste and aroma, Chinese Sauces give Chinese food that authentic touch and add a unique flavor to Pakistani dishes as well. They are like one of the biggest Chinese secrets made public without the slightest bit of espionage

Chinese Chilli Sauce Chinese Salt Chinese Soya Sauce Malt Vinegar (Brown)

Red Hot Sauce Sauces-Tri-Pack (Malt) Sauces-Tri-Pack (White) Synthetic Vinegar (White)

All sweet things are irresistible and so are National Foods Desserts. For some, Pakistani desserts are a must after every meal, for others any time is dessert time. Some do it for the aftertaste, others have regular dessert cravings. But almost always, it gets you into the best of moods. In Pakistan, it is synonymous with good news and happiness. Three products in the range make National Foods Desserts three times as sweet.

Banana Custard Kheer Mix Kheer Pistachio Mango Custard

Strawberry Custard Vanilla Custard Vermicellies

The weight watchers who have a sweet tooth and who just cant say no to dessert or those who simply enjoy something sweet after a hearty meal need not fight the temptation any longer. National Health Foods bring the same sweet taste to you but sugar free. Their ranges of Health Foods are just right, even for diabetics. National Health Foods bring you the best of both worlds.

Diet Custard Vanilla Diet Jelly Banana Diet Jelly Strawberry

Diet Kheer

Made from real fruit pulp and juice, National Jams and Jellies offer you a taste of some of Pakistans most popular fruits. With a wide range of flavours, National Foods brings you the varied tastes of a range of tropical fruits, including Mango, Pineapple and even Kino, a variety of orange only found in the subcontinent. So sweeten up your mornings and tea times with National Jams.

Apple Jam Apply Jelly Black Current Jam Cherry Jelly Fruit Cocktail Jam Guava Jam Kino Jam

Kino Jelly Mango Jam Mixed Fruit Jam Orange Marmalade Pineapple Jelly Strawberry Jam Strawberry Jelly

Made from the finest tomatoes, National Ketchups and sauces cater to every taste. From the hot and tangy to the sweet, National Foods offers ketchup for every dish and occasion. Use them as dips for your munchies, dressing for your salads, accompaniments for the main course or even as marinades for your recipes. National Foods sauces can do it all.

Pakistani food without pickles is like a portrait without colour. A mix of mustard oil, mixed spices, salt, citric acid and various vegetables and fruits, Pickles are used as a side relish, taste enhancer and even as a good source of digestion. Known for their uniquely sharp and tangy flavour, national foods pickles add that special something to food, making all the difference.

Carrot Pickle Hyderabadi Mix Pickle Imli Pickle Kasaundi Pickle Mango Pickles Mix Pickles

Pickle Chilli Pickle Garlic Pickle Lemon Vinegar Pickle (Mango) Vinegar Pickle (Mix)

Raj Masala brings you the joy and ease of North Indian cooking.

Traditionally, North Indian curries are creamier and less chilli hot than other Indian curries and even Thai food. Over 20 different spices are used to create flavour and aroma. Yoghurt, cream or coconut milk are used for the texture and to take the heat out of some dishes.

Raj Masala is a fresh and authentic range consisting of five different pastes and sauces for preparing Rogan Josh, Kashmiri Korma, Balti Curry, Tikka Curry, Mango Curry and Butter Chicken, a perfect blend of the traditional taste of most popular North Indian curries with the ease of modern cooking. Pappadoms are served either broken up or sprinkled on top of curries or as appetizers. 10

All Raj Masala products have been created to conveniently provide a complete meal solution for up to four people; whether it's a quick meal for the family, guests invited to dinner, or a new slant on your backyard barbeque with your favorite drink.

A Raj Masala cookbook has been written for you to quickly and easily create meat curries, healthy vegetarian meals, Asian-style Balti dishes and of course, Tandoori barbecues. It's easy, economical and certainly a new way to eat your meat and veggies

National foods ingredients are meticulously selected and blended to guarantee the right combination and perfect taste.

National Foods uses modern technological processes to obtain thorough mixing, and hence the particular flavor that is our specialty.

National recipes are based on the most popular and traditional ethnic dishes the subcontinent has to offer. They provide their consumers with recipes that are easy and convenient to use. And, they taste great!

Achar Gosht (Pouch) Achar Gosht Masala Behari Kabab Masala Biryani Masala Bombay Biryani Masala Broast Mix Masala Chapli Kabab Masala Chicken Jalfrezy Masala

Murghi Masala Murghi Masala (Pouch) Nihari Masala Nihari Masala (Pouch) Paya Masala Qeema Masala Quick Cook Haleem Mix Quorma Masala 11

Fish Masala Haleem Masala Haleem Mix Danedar Kaleji Masala Karahi Gosht (Pouch) Karahi Gosht Masala Kofta Masala Lite & Crispy Masala

Quorma Masala (Pouch) Sabzi / Bhujia Masala Shahi Dal Masala Shami Kabab Masala Sindhi Biryani Masala Tandoori Masala Tikka Masala Yakhni Pulao Masala

Elaborate, home cooked meals are a daily tradition in Pakistani homes. Meals that call for hours of preparation in chopping, peeling and grinding, Frying onions and tomatoes has been simplified by the introduction of a complete recipe cooking paste, Rivaaj. Just add meat, cook and voila, enjoy some of Pakistans most delicious cuisine.

Biryani Paste Bombay Biryani Paste Chicken Jalfrezi Paste

Karahi Paste Quorma Paste Shahi Curry Paste

National uses the most modern refining techniques, which involve cleaning, washing and centrifuging. Carefully chosen raw material, at the initial stage, ensures maximum purity of the salt. Special processing enables the free flow of National Foods salt. National Foods is the pioneering manufacturer of iodized salt in Pakistan. Due to their competitive positioning, iodized salt is now synonymous with National Foods in Pakistan.

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Whenever you feel like treating your taste buds to something snappy, try out the National Foods Snacks Range. Whenever, wherever, snacks just add flavor to the whole experience. Bringing together a variety of Pakistani street food delights that take you back to the time you had them off the cart, National Foods Snacks are pure temptation - the fun side of food. With a range of five products, National Foods Snacks are simply irresistible.

Chat Masala Powder Chatpata Pakora Mix Dahi Bara Powder

Fruit Chat Masala National Chutni Powder

Spices and ingredients form the basic essentials of any Pakistani dish. To understand how to use them, when to use them and in what quantities, is considered an art that can only be understood with experience. The colour, the aroma and the taste ... Everything that is so important for a dish to turn out perfect is controlled by the correct and timely usage of spices and ingredients. National Foods Spices & Ingredients are like little spells that come together to work magic.

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THE SALES PLANNING PROCESS

ANALYSIS

CONTROL

OBJECTIVES

IMPLEMENTATION

STRATGIES

TACTICS

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Financial strategy is the most important and integral part of any firm, it determines how a firm earns profit and how it makes the investments. This is a very confidential part of any firms management strategy.

National Foods finance department has a key financial strategy to maintain a solid financial base that enables it to strike a balance between enhancement of short term profitability and forward looking investment for long-term, stable growth. With a view to future growth, finance department implements large amount of its profit in R&D. at the same time it maintains positive free cash flow in automotive operations. Their management policies give priority to cash flows to enable them to respond quickly to changes in the operating environment and to steadily increase corporate value for the shareholders.

The firm starts with their planning process 3 months before the start of their fiscal year. When planning they keep into consideration the requirement of different departments in the firm as well as the political and economic condition of the country. When they are done with the planning for one a fiscal year each department is required to execute the plan. For example the marketing department and particularly the brand manager would then come up with marketing plans where the talk about the brand plans, the competition they facing, the segment of the market they are targeting and those that they plan to target and they also plan about the prices by taking into account the pricing strategies of the firm. They also have sub objectives which act as a means of achieving objectives for example if the objective is to achieve certain market share then the sub objective would be to diversify their product range. They mainly follow the cascading effect and their object can conflict. If they want to achieve profitability then they would have to increase price but then the consumers wont be able to buy the product if the fall beyond their range.

Their top management decides the organizational plans; they then set the financial goals and sales growth which is conveyed to subordinates. They follow a mixture of group and top managers decide on organizational objectives and both of them take part in it but the ultimate objectives are set by the high level management. when formulating organization objectives they take into account the market standing of the firm, competition, productivity their resources the political environment as well as the history of the firm itself. The brand plans talk about all these plans and identify them. They usually 15

develop a mixture of long term or short term immediate objectives. This firm has a long term objective of earning fifty billion profits by the year 2020 and a short term objective of achieving profitability. To ensure the quality of objectives they develop brand plans and organize them and the effort put in executing the plans matters which ensures quality objectives. the decision making process involves all level management but when talking about the middle level management the brand manager takes the decision for the how the plan should work, the advertising and justifying their argument and if they are able to convince the boss then their decision is implemented.. The tools they use for decision making depend on different situations the firm is facing.

The firm favors group decision making. The strategic plan is to diversify products and reach 50 billion by 2020 and their tactical plans include market leader and producing good quality products. The firm basically uses the SWOT analysis and also uses BCG matrix and market segmentation for strategy formulation but they use other tools depending on the circumstances they face. When it comes to duration of the plan they use standing and single use plans. plans do fail in this firm because of the dynamic market and economic downturn in the country and an example is the firm not being able to reach target market share but plans are made to minimize risk and continuous monitoring and research reports ensure that the risk of plans failing are minimized. The firm changes plans according to circumstances. The planning tools they use come both from scheduling and forecasting and using GANTT charts are common in the firm.

In their view, sacrificing long-term growth to boost short-term profits is not an appropriate financial strategy for the manufacturing industry. They believe the sector should create markets based on new technologies. National foods basic approach to business rest on the conviction that the best way to achieve sustained growth of shareholder value is to heighten its profitability in conjunction with adequate provision of funds to fulfill such social responsibilities as environmental investment, returning benefit to local communities and employee welfare.

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THE INTERVIEW
Question: What is the mission of National Foods? To deliver consistent quality to our customers using pure ingredients, authentic recipes and the best available technology Dedicated to continuous improvement through active alliances with international companies to expand technological and product horizons To maintain close and direct contact with our customers through consumer insights and dedicated service To provide external and internal customer service by excelling in functional management To promote professionalism at all levels through education, training and development for all human resources To deliver annually a fair return to our valued investors and shareholders inline with industry and economy

Question: In order to see the willingness to buy do you test market your products? Yes of course. We first try to record the reaction of our existing customers by giving them free trial of our products. If we get a positive response, only then we mass market our product.

Question: Do you follow a standard procedure of sales forecasting? Yes. We have a separate department which forecast the sales revenue in accordance with the financial data for the next year.

Question: Are qualitative factors more important than quantitative factors when forecasting sales? Both are equally important. Its like tea without sugar for me. Objective task method is widely used in our company when forecasting sales but first we rely on the figures to give us a clear picture of our sales potential.

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Question: Who is responsible for sales forecasting? All the mangers in our sales and marketing department are responsible. We often use our sales personnel to know about the consumer reaction patterns and the future market trends.

Question: How do you evaluate your sales forecast? We usually compare it with the total forecasted sales. And I am glad to tell you that our sales forecast are mostly accurate and differences only occur do you the uncontrollable factors in the environment.

Question: When gathering information, do you use primary sources or secondary sources?

Primary research is the key to our market research as we specifically gather information about our existing and potential customers. Our whole sales team efficiently gathers date by coordinating their efforts through all levels. From the highest to the lowest level.

Question: Do you incorporate advanced techniques like MIS in your research?

Yes, MashAllah se we have a separate MIS department which performs its tasks very effectively.

Question: How many years do you take in to account when analyzing the past data?

Two to three years. Due to the rapidly changing environment we do not really rely on the previous years data.

Question: How has the market in general evolved during this time span?

During the past three years, there haven't been major significant changes in the market. However, a few social changes have enabled National Foods to come up with a variety of new products. Each product has been customized to adapt to the change in consumer taste.

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Question: How did you perform against the competitors?

Our company has a variety of SBUs (strategic business units). Therefore, it faces different competitors in different product lines. National Masala has been the market leader for almost 5 years but other products like Custard and Chili garlic are facing a tough competition in the competitive market.

Question: How have specific products, territories and accounts developed in terms of sales profitability?

National foods already has different brands in the market like Jams, ketchup, Achar, Kheer mix, Custard powder, etc. Recently, we launched a new brand named Rivaaj, It has increased our sales by 40% and profits by 20%.

Question: What about your market share?

Our main focus has always been on high profitability which further leads to a high market share. I am proud to be associated with National Foods which successfully occupies 80% market share in powder mix market.

Question: How do you analyze your competitors future actions?

We are operating in this industry since 1970. Hence, we are aware of the different reaction patterns of our competitors. If a competitor reduces its price by 5rupees, it wont affect the sales of our National Recipes. However, when introducing new products like National Rice (Guard) and kheer, we failed to correctly analyze the competitor action and therefore faced major losses in both the product lines.

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Question: What can be learnt from the past?

When entering in to new markets, for instance rice. National foods should emphasize on Research and Development to a great deal in order to make continuous improvements and minimizing the risk of failure.

Question: How do Macro Environment factors affect Sales Organization and Market potential?

The demographic profile of our existing and potential customers majorly consist of single, married working females, age 18 to 30. In Pakistan, with the increase in career opportunities for women the demand for our National recipes has increased greatly.

The economic conditions do not have much impact on the sales of our products. As we deal in products which are less costly and can be bought on affordable prices.

Our recipes are in accordance with social and cultural norms of the society. The GDP is showing a declining trend from the past three years as it fell from 7.1 to 1.23%. Inflation is also at its peak, in these tough times National Recipes have successfully managed to retain its profits by selling manufacturing its products cost effectively.

Question: What are your Strength, weaknesses, opportunities and threats (SWOT)?

Strengths: National Foods has a very broad product line that includes different types of Masala powders, kheer mix, ketchup, custard powder, pastas, achars and many more. It is dealing with more than 380 distributors which is its biggest strength as none of our competitors have such a vast distribution channel. It also has 500 people working as the field force and all of them are employed by National Foods. National food possesses specific manufacturing competence for example use of imported machinery and high quality ingredients in manufacturing of powder mix that maintain the quality of product. 20

Weaknesses: Our major weakness is the declining gross profits due to the increase in operating expenses. We have not been able to increase our gross profits since the past 3 years.

Threats: Political instability and competitors in the market. Especially our unpopular products like Custard and Kheer are facing intense competition from the new competitors entering in the market. Also, the law and order situation

Opportunities: Straight forward, the birth rate of Pakistan at the moment is an opportunity for us. Apart from this, the increase in literacy rate is also an opportunity for mass marketed foods. GDP can also prove to be an opportunity- but in countries unlike Pakistan. Coming back to literacy rate, how does that affect us? Well young lady it has a major affect on the consumption of our Masalay. Women like you, women of today, are now career oriented. More focused towards their aim. As a result, they need to balance their time. Women no longer have the time or energy to create fresh Masalay. Let me give you an example, my sister in law is a masters in English Literature from Karachi University. She can't even cook a decent fried egg. National Foods is capitalizing on that aspect, such women will use our Masala packets because they are convenient and easy to use.

Question: What are your major sales objectives?

Our sales objectives are very simple: Retaining leadership and earning profit. I can brag a lot about customer orientation and customer value. Believe me, everyone does but the truth remains, shareholders need profits. Leadership is a tricky business. To retain your leadership requires major sales efforts. The leader can charge a premium whenever they like. Hence, our main objectives revolve around keeping our shareholders happy.

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Question: But what about key account management? Don't you manage your key accounts in a way which generates customer loyalty?

Answer: Well, this concept of key accounts has basically evolved since Olpers came into being. We offer big retail discounts to major retail stores. In addition to the discounts, we give them commissions. These discounts and commissions are not for the common man. We maintain separate accounts for Aghas, Mottaz, Imtiaz, Ghaffars and all these retail stores. Imtiaz has been apportioned Rs.16 lakh from National. In addition to these, we have adapted to these new trends of International Modern Trade (IMT). Makro, Metro and the hyper marts are examples of such IMTs. So now what happens is, we have separated an input/output system for all these. The decision of shelves, the placement, the share we get (primary and secondary) are taken in accordance with the IMTs. Also, we provide a higher sales personnel for MTS and big units. For instance, wherever there are higher sales, follow up is more. Increased sales visits and sales calls are examples of follow ups.

Question: How do you coordinate your sales objectives with the sales personnel and the other departments?

Answer: Yes this is a very big problem. Here, the finance department tries to keep lower costs of production. The production is concerned with employee welfare. We are the sales department, our main concern is to generate sales and attain profitability. But one thing which is good here at National Foods is that the director controls everything himself so the coordination is very smooth. For instance, if this was peak time for a product for which I had anticipated an amount of sales, and I was sitting in my office at 12 am, there is no doubt I would be screaming at the logistics department. But if the director is handling the coordination with the logistics, it is a given that I wont be yelling at my director. The sales operation manager creates a buying based on anticipated forecasts. The HOD's get together before the end of the month to discuss anticipated budgets for their departments. They discuss which products are profitable, how the buying will be achieved, how customers can be attracted, how sales volume or political instability might thrash the situation, the disturbance by the vendors.. all the issues are discussed beforehand. Else, what will happen is at the time of execution when shortfalls or delays occur, everyone would be placing allegation on the other. 22

Question: How do you implement your sales objectives?

Answer: I am happy to announce to you, that by the grace of Allah, last year we had toped our budget by 2.2%. Our implementation is effective because the maximum forecast variations we have are of 810%. We implement our objectives by first clearly communicating them to the sales personnel so they know what they are striving for. Regular meetings are held for this purpose. We also provide training every year to refresh the main concepts instilled in our personnel.

Question: What are your core strategies?

Answer: Our strategies include objective action plans to hold our current market position. Basically, we strive for low cost strategies. Our products are designed for the entire market. Some of them are targeted towards one specific group more than the other, but they are used by the entire market: men, women, children, seniors. Hence, to be cost effective we adopt an overall cost leadership. We strive to find out any possible way with which we can cut our cost of production. All our tactical plans or objectives are based on this strategy.

Question: Which tactics do you use? Push tactics or pull tactics?

Answer: Okay thats a close question young lady. I would want to maneuver but I'm fasting and I would hate to lie. To be very frank, we use the push tactics. It may be embarrassing for companies to admit it, but truth remains, in Pakistan most companies use push tactics. Honestly, marketing remains on its bench but lets say for instance that out marketing budget is Rs.100, there are 10 people who are present to share the profits with us. We focus on below the line activities. We set up displays to push the products to the shops and retail stores. It should seem like the shop is ornamented with our products. Let me tell you about the failure of many firms in Pakistan for e.g. The United Colors of Benetton. It used to rely on stock management. It failed to understand the psyche of Pakistan. Here in Pakistan, the customers prefer to shop from loaded stores. Stores which have abundant inventory of products. This represents variety for them. Here most of the customers are those who are influenced by the buying decisions of others. This is known as 'word of mouth'. What we aim to do is basically 23

decorate the shops with our products. Why? Just to confuse you in your decisions. So basically, we want to push or somewhat throw our product towards the retailer. As I mentioned earlier, we are persistent in fact diligent in our key account management efforts. However, recently our pull strategy has gotten stronger with better recruitment practices. This gentleman who just passed by was the marketing manager at Philips in the United States and is now working with us. Many other such experts have joined the organization and they've been generating many innovative and positive ideas for marketing. Hence, in recent times our marketing has gotten stronger too with Rs.2 crores budgeted for copies and print media advertisements along with TV commercials.

Question: How do you communicate your tactical actions with your regional sales managers?

Answer: We have elaborated the categories of our profitability and then communicated them to the regional sales managers'. For instance, we have three different flavors in ketchup: regular ketchup, chili garlic and hot and spicy. The lowest sales are for hot and spicy. The highest sales returns are also for that. And it generates the lowest profits. So we have set a mix, established a ratio. Wherever we see performance like this, we retreat our products. We are looking for the competitor to steal our market share. So these strategies are communicated to the regional or zonal sales manager. In turn he stops to push that product to the retailers. So it's a whole cycle which starts with a shift in the strategy.

Question: How do you implement your sales plan? In National foods good communication with the sales force acts as a key factor to implement the sales plan successfully. For that matter sales operation manager arranges a meeting where senior sales manager addresses the sales force and makes them aware of the sales objectives, strategies and tactics to be used for the implementation of the sales plan for the forthcoming period.

Question: Is it implemented at all levels? Level of coordination among all the departments is very strong in National foods. All the managers sit together, discuss and respect each others views and try to create a bind that would give profitable results in future. 24

Question: What training do you provide for implementation? Sales people are trained to manage their time and respond to challenges competently. They are provided with continuous support, advice, information and guidance that helps them to carry out their tasks effectively and efficiently.

Question: How do you evaluate the sales plan? In National foods evaluation of the sales plan is done on quarterly basis. It is carried out by comparing the planned results with the actual outcome. Generally the forecasted error is more or less 10% which is almost ignorable.

Question: What corrective actions do you take? During the past few years not much deviation has been observed in actual results when compared with the forecasted ones. However, in national foods push tactics were used at greater extent but over the last few years pull tactics have also been strengthened to diminish the minor forecasted error. Effective daily reporting system is also practiced in the company.

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SUMMARY
National Foods has a separate Sales Department which deals with almost 400 distributors. Thus, it follows a systematic approach for sales forecasting. As sales forecasting is the starting point for assumptions used in various planning activities. National Foods successfully coordinates with the other functional departments like Human Resource and Finance when making its sales forecasts. On the basis of the forecast, they estimate the market and sales potential of their different Strategic Business Units (SBUs).According to the sales manager, National Masalas are the cash cows ( the most revenue generating products) among the other product lines. National Foods incorporates advanced MIS techniques in the information gathering process in order to estimate its sales potential in the market. Due to the political instability the GDP has shown a decreasing trend in Pakistan, therefore the industry sales have been affected due to the decrease in the national income. Yet, National Foods manages to achieve its estimated sales revenue because of its affordable prices.

A proper analysis of the past 3 years is done which includes competitor actions, firms market share, SWOT analysis, development of different products and territories, the macro environment factors and most importantly what have they learnt from their past mistakes. National Foods has been established since 40 years, hence, it has a vast experience in the competitive market. They successfully anticipate the competitors future actions and do not face price wars as such. They have 80% of the market share and estimate a large sales potential especially for National Masalas. Macro environmental factors, for example demographic trends have increased the demand of National Recipes as its demographic profile is showing an positive trend which mainly comprises of working women. National Foods keep a regular check on its product life cycle and give emphasis on the products which have reached the Growth and Maturity stage like National Masalas. They keep on introducing new recipes in order to survive in the competitive market. They also focus on the changing consumer patterns and their tastes. They review their competitive advertising media frequently in order to attract more people towards their products.

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National Foods sales objectives are retaining leadership in the areas where they serve as leaders, attaining leadership where they have star products and earnings profits which indicate higher share holder equity with an increased dividend yield.

National has a customized key account management system whereby it incentivizes its key account by offering big retailer discount, maintaining separate key account profiles and allocating a higher percentage of sales personnel to key accounts. Additionally, the input/output system for IMTs is managed separately and they are included in decision making of the firm. National Foods sales objectives are specifically and clearly communicated to its sales personnel in order to ensure that the focus of the company is not deviated.

Coordination of sales objectives is a difficult task underlying any company. However, National has taken steps to ensure that the coordination is as smooth and as effective as possible. The director manages the coordination which in turn ensures employee support. Also, for effective direct communication, the HODs conduct a meeting before each month to discuss budgeting, allocation of resources, provision of personnel, implementation of plans etc. Any errors the departments anticipate are brought up at this stage which reduces future allegation and blame placement.

National Foods follows a low cost strategy whereby the firm strives to lower its cost of production which leads to lower market price and a therefore a higher market share.

National Foods adopts push tactics. The product is PUSHED towards the retailer. It aims at ornamenting the retail stores with its products in accordance with the Pakistan consumer psyche. The Pakistani market prefers to purchase a product from stores which seem abundant in product variety. However, recently it has also focused on attaining prospective customers by creating a PULL. Advertising through electronic and print media has been adopted.

In National foods, with the intention of implementing the sales plan sales meeting is setup where the plan is disclosed to all the staff. Then everyone is taken into confidence and subsequently the plan is communicated to the sales force. Sales people are then informed about the goals, strategies and tactics to be used. For that matter the sales people are constantly motivated and instructed so that they are able 27

to achieve the tasks proficiently, skillfully and expertly. The sales plan is evaluated by comparing the forecasted with the actual results. Over the past few years the forecasted error has been 10% showing how efficiently the plan is usually build up. To overcome the error timely corrective actions are taken in order to achieve the desired profits.

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