GROUP MEMBERS:

Muhammad Yousuf Mehmood Salman Saleh Muhammad Masood Riaz Muhammad Misbah-ul-Haq Siddiqui Hammad Malik 2010-1-06-11880 2010-3-11-10992 2010-3-11-10996 2010-3-11-10979 2010-1-03-11873

CURRENT MARKET SITUATION

MARKET DESCRIPTION
Wants:
In our society most of the people like spicy foods because it is the part of our culture. In other countries like China, Japan, Korea commonly people dislike to eat spicy foods because of their culture.

Demands:
Meals that call for hours of preparation in chopping, peeling and grinding, frying onions and tomatoes. National has simplified this entire process of cooking into simple steps.

ENVIRONMENT FACTORS
Macro Influence:
Such as demographic, economic condition, culture, etc.

Micro Influence:
It consist of suppliers, marketing intermediaries.

EXTERNAL MACRO ENVIRONMENT

Demographics Economic conditions Competition Social and cultural forces Political and legal forces Technology

EXTERNAL MICRO ENVIRONMENT

Market
The company management is trying to expand its market by increasing its sales volume so, here we have raw information related to sales is as under: Local sales: 106,304,014 Growth over last year: 24.68% Export sales: 101,177,657 Growth over last year: 10.20% Corporate growth over last year: 20.12%

Suppliers
Now a day NATIONAL FOODS is focusing on its company's suppliers and the company has a strong network of suppliers in different regions. The details related to its product supply is as under: 1. SINDH 2. PUNJAB 3. KHYBER PAKHTOONKHWA 4. BALOCHISTAN

INTERNAL ENVIRONMENT
Human resources Financial resources Information resources Customers Intermediaries

PRODUCT REVIEW
Product line
NF has a range of over 110 products in 12 major categories. Plain spices Chilli, Coriander, Turmeric, Black Pepper, Cumin Seeds etc. Chinese Salt And Vinegar Chinese Chilli Sauce, Chinese Salt, Chinese Soya Sauce, Malt Vinegar (Brown), etc. Pickles Carrot Pickle, Mango, Pickle Vinegar, Pickle (Mix), Kasaundi Pickle, etc. Ketchup Tomato and Chili. Jams, Jellies And Marmalades Apple Jam, Apply Jelly, Strawberry Jam, Strawberry Jelly, etc. Snacks Chat Masala Powder, Chatpata Pakora Mix, Dahi Bara Powder, etc. Desserts Banana Custard Sauce, Vanila Custard, Strawberry Custard etc Recipe Masalas Achar Gosht, Fish Masala, Bombay Biryani Masala, Qourma Masala, etc.

Prices and Gross Margins of the Major Products In Product Line

Gross Margin Gross Margin Price (Rs) 132 127 132 Gross Margin

Plain Spices Chili Powder Garam Masala Ginger Powder

Price (Rs) 120 28 45

Pickles Mango Pickle Chili Pickle Lemon Pickle

Price (Rs) 80 85 85

Ketchups Chili Garlic Tomato Hot & Spicy

37 9 15

23 24 24

42 39 40

Recipe Masala Fish Masala Bombay Biryani Qourma Masala

Price (Rs) 70 37 70

Gross Margin

Jam & Jelly Apple Jam Mango Jam Orange Jam

Price (Rs) 92 92 92

Gross Margin

Deserts Banana Custard Mango Custard Kheer Mix

22 13 20

28 28 28

Price (Rs) 48 48 50

Gross Margin

14 13 15

National Foods Sales

4,500,000 4,000,000 3,758,706 3,500,000 3,000,000 2,500,000 2,000,000 1,847,700 1,500,000 1,000,000 500,000 0 2005 2006 2007 2008 2009 2010 1,533,879 3,061,746 4,095,624

2,391,058

COMPETITORS ANALYSIS

PAKISTANS FOOD MARKET

Pakistan is the worlds ninth largest market with an estimated 170 million consumers.
The growth rate of retail outlets is 15 %in the

1990s, presently resting at 286,774 outlets.

BIGGER THE MARKET BIGGER THE

MAJOR SEGMENTS of COMPETITION

Spices/ Ingredients

Jams/ Ketchups

Deserts

Chinese and food health

COMPETING BRANDS
Segments
Spices/ Ingredients/ Snacks and Recipe Masalas Jams/ Ketchups

Competitors
Shan foods, Mehran, Chef pride Michelles, Ahmed, Shezan Shan foods

Chinese and food health Desserts

Rafhan, Laziza

Spices/ Ingredients/ Snacks and Recipe Masalas

Market leader. Stiff competition. High brand loyalty.

Company and Competitors Market Volumes in Rs billions

Company Name
National Foods Shan Foods Chef pride

2006
1.2 1.2 0.45

2007
1.5 1.68 0.63

2008
2.5 2.352 0.882

2009
3.2 3.2 1.2348

Others

0.15

0.21

0.294

0.4116

Jams & Ketchups

Lags behind Mitchells. A need to target young urban population with strong promotional campaign.

Deserts and Salts

DISTRIBUTION CHANNELS

Region Name Sindh

Market Share 45%

Punjab
KP and Balochistan

45%
10%

Strong distribution structure required in Sindh region

THREATS & OPPURTUNITIES

SWOT Analysis

Strengths

Weaknesses

SWOT

Oppurtunities

Threats

 NFL has Over 110 products. NFL has 165 and above SKUs (Stock Keeping Unit) for the domestic market. NFL has over 100 different products for the international markets. NFL has been serving since 1970 with huge distribution channels. NFL has a Corporate Gross Sales Growth of over 25%. NFL is recognized as being one of the 10 best Human Resource Managed companies in Pakistan. NFL got Rs. 3 Billion plus turnover including USD 4.64 million of export. NFL is the clear leader of products in the Canadian market.

Strengths
NFL has Over 110 products NFL has 165 and above SKUs (Stock Keeping Unit) for the domestic market

Weight
0.1 0.09

Rating
4 3

Weighted Score
0.4 0.27

NFL has over 100 different products for the international markets

0.06

0.24

NFL has been serving since 1970 with huge distribution channels

0.2

0.8

NFL has a Corporate Gross Sales Growth of over 25% NFL is recognized as being one of the 10 best Human Resource Managed companies in Pakistan

0.1

0.3

0.1

0.3

NFL got Rs. 3 Billion plus turnover including USD 4.64 million of export

0.2

0.6

NFL is the clear leader of products in the Canadian market

0.15

0.45

TOTAL

3.36

Weaknesses

NFL has poor internal control and monitoring when performing audit. NFL does not have a strong advertising campaign like Mitchells.

Weaknesses
NFL has poor internal control and monitoring when performing audit NFL does not have a strong advertising campaign like Mitchells TOTAL

Weight
0.45

Rating
3

Weighted Score
1.35

0.55

1.65

 Growing export of spices from Pakistan.

Growing demand for ready made mixed herbs, spices & sauces. New markets being developed for enhancing horizontal penetration in various segments. Launch of NFL products in India through an authorized distributor.

Opportunities
Growing export of spices from Pakistan Growing demand for ready made mixed herbs, spices & sauces New markets being developed for enhancing Horizontal penetration in various segments Launch of NFL products in India through an authorized distributor TOTAL

Weight
0.25 0.3

Rating
3 4

Weighted Score
0.75 1.2

0.2

0.6

0.25

0.75

3.3

 Political unrest in the country is skyrocketing costs (inflation). Tax policies are fluctuating.

Threats
Political unrest in the country is skyrocketing costs (inflation) Tax policies are fluctuating TOTAL

Weight
0.55

Rating
3

Weighted Score
1.65

0.45 1

1.35 3

MARKETING OBJECTIVES

MARKETING OBJECTIVES
Understanding customers needs

Developing new products

Increasing brand awareness

CORPORATE OBJECTIVES
The organisations overall goals

MARKETING OBJECTIVES

Improving profitability

Improving market share

Diversification
Re-launch of product

MARKETING OBJECTIVE STATEMENT

To be a Rs. 50 billion food company by

the year 2020 in the convenience food segment by launching products and services in the domestic and

international
lifestyle and

markets
create through

that
value

enhance
for our

customers

management

excellence at all levels.

MARKETING STRATEGIES, ACTION PLANS & RECOMMENDATIONS

MARKET SEGMENTATION

Geographic

Demographic

SEGMENTATION

Psychographic

Bahavioral

Geographic
World region Countries specific regions Density Climate Over 35 countries\5 continents All (East, West, North, South) Urban Any

Demographic
Gender Age Female (majority) Above 23 Years - Cooking Women

Family size
Income group

Any
Seekers, Indians Strivers, Global

Psychographic
Social Class Lifestyles Middles, Upper Middles, Lower Uppers, Uppers Uppers Achievers, Strivers

Behavioral
Occasions Benefit sought Loyalty status Readiness stage Regular, special occasion, holiday, seasonal Convenience, Fast Preparation, Traditional vales attached High Aware, Informed, interested, desirous Positive

Attitude towards product

MARKET TARGETING

1 Segment size and growth

2 Segment structural attractiveness

3 Company Objectives

MARKET TARGETING
EMS
SMS UM MP

Evaluating Market Segments

Selecting Market Segments Undifferentiated Marketing

Market Positioning

MARKET POSITIONING
Hamary Khaaney hamary tehwaar! (Our food our culture!)

Through:
Celebrating Vitality Celebrating Love Celebrating Friendship Celebrating Family

BRAND PROMISE

BRAND POSITIONING
Brand position in customer mind

- Quality, Hygiene and Purity

RECOMMENDAITONS FOR DIFFERENTIATION Desi Recipe Individuals Living

Sugar free (Diet desserts)

Service differentiation People differentiation

MARKETING STRATEGY/MIX

Product Price Place Promotion

PRODUCTS
Classification of Product National Foods products fall in the category of consumer goods. Product Portfolio: Range of over 110 products in 12 major Product Lines. Market Leaders in: Recipe Masalas Salt Pickles Vinegar & Chinese Salt

 Market Opportunities Need to extent their Dessert & Snacks product-lines as currently this market segment is a Question Mark segment. Look for expanding the Product Portfolio by exploring market segments like: Packed Instant Juices Ready-to-cook Foods

Introduction of Bulk Masala Packs for whole-sellers, restaurant users as SHAN did in mid 2010 & was successful.

PROMOTION
To inform the market about their products Competitive positioning in the mind of consumers
Promotional Strategies:

PUSH Strategy Wholesalers and retailers will be advised to increase sale By offering different incentives, good profit margins, Credit benefits etc PULL Strategy Through advertisement on different mediums PROMOTIONAL CAMPAIGN through telemarketing, promotional sales, public seminars.

 Other Cheaper but effective ways: Use of Newspapers, magazines for promoting their products more aggressively. Use of Online Marketing via social sites, public forum etc. Free Sampling to final consumers.

PLACE
Inventory of both raw material to end-products
Market Coverage Products for masses Exporting to more than 35 countries Outlets Super markets, small to medium General stores, & Bachat bazaars.

Channels of supplies Market penetration rely on third party distributors.

SUPPLY CHAIN MODEL

Distribution chain is for Karachi.
PRODUCER WHOLESELLER RETAILER CONSUMER

Distribution outside Karachi.

PRODUCER AGENT WHOLESELLER RETAILER CONSUMER

PRICE
Selecting the pricing objectives Survive in the market
To maximize their profits Market share maximization Market leadership Demand for National Food products is Elastic Analyzing the Competitors Price

COMPETITIVE PRICING MODEL:

BUDGET
Marketing Plan considers use of private capital & use other sources like TFCs, stock markets, bank financing. The Forecasting Budget reflects:

Projected Profit-andLoss Statement

Expected Sales

Expected Average Unit Price

Expected Cost of Production

Expected Cost of Distribution

Expected Cost of Marketing

Budget provides basis, after managements approval, for materials buying, production scheduling, personnel planning, and marketing operations.

 Financials the Focal Point at National Foods

 Competitive Profile Matrix (CPM)

CPM analysis helps marketers at National Foods in how much budgetary resource should be used for each critical success factors to compete with rivals specially SHAN & Michells

National Foods
Critical Weightage Success Factors Advertisin 0.05 g Product 0.20 Quality Financial 0.15 Position Market 0.05 Share Customer 0.10 Loyalty Price 0.10 Competiti veness Global 0.20 Expansion Sales 0.05 Distributio n Managem 0.10 ent Total Rating

SHAN
Rating

Mitchells
Rating

Score

Score

Score

3 4 3 3

0.15 0.80 0.45 0.15

2 3 3 2

0.10 0.60 0.45 0.10

3 4 4 3

0.15 0.80 0.60 0.15

3
4

0.30
0.40

3
3

0.30
0.30

3
3

0.30
0.30

3 3

0.60 0.15

2 2

0.40 0.10

4 3

0.80 0.15

0.40 3.40

0.30 2.65

0.40 3.65

MARKETING CONTROLS
The steps:
SETTING MARKETING GOALS

MEASURING PERFORMANCE

EVALUATES DIFFERENCES BETWEEN EXPECTED & ACTUAL PERFORMANCE

MANAGEMENT TAKES CORRECTIVE ACTION

 Review Mechanism based on periodic measures like

Revenue Expenses Customer satisfaction New product developments

Strategic Controls
Managements keeps check on strategic planning with Organizational goals achievements.

Marketing Audit
to assess marketing environment, marketing strategy, marketing organization, marketing systems, marketing mix, and marketing productivity & profitability.