National Food

ACKNOWLEDGEMENTS:
Allah Almighty:
First of all I am thankful to God who gave me strength to work and due to His blessings finally I am able to complete this project on time. Praise to be ALLAH, Lord of the worlds, the beneficent, the merciful, Lord of the Day of Judgment, thee (alone) we worship, and hee (alone) we as! for help" #how us the straight path, the path of those whom thou hast fa$ored" %ot the path of those who earn thine wrath nor of those who go astray"&

Mr. Jahangir Sadiq:

' would li!e to than! my respected teacher for gi$ing me this opportunity to wor! for the %ational food pro(ect" 'n this pro(ect ' learned a great deal about the mar!eting concepts that ' ha$e been studying"

My Parents:
I am also very thankful to my parents who support me in every walk of life and always encourage me to work hard. No one can survive without the prayers of his\her mother. I am very thankful to my mother specially and I wish her a long life.

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National Food

About The National Foods:

National Foods is a well!known name in market. It was founded in "#$ and started out as a %pice company. & decades later it has diversified into a versatile Food 'ompany with over ($ and above products and $$ and above %)*s +%tock )eeping *nit, for the domestic market and over $$ different products for the international markets. -he vision to see National Foods as a professionally managed Human .esource company/ set more then # years ago/ was reali0ed by transforming a local company into a very dynamic and progressive management structure in line with industry practices. 'ompetent Human .esources from within the company have fuelled tremendous growth by e1celling in Functional 2anagement. 3ven after & decades the company4s 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 technology5 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 with modern lifestyles and yet retains traditional values through its impressive collection of food products. -he 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/ and seasonal holidays and of course ! everyday life. 6e bring value to all our customers by enriching their e1perience of using our products in ways that help them become the center of attraction for their family that wins praise every time.

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National Food

Com any Mission:

-o deliver consistent 8uality to our customers using pure ingredients/ authentic recipes and the best available technology 9edicated to continuous improvement through active alliances with international companies to e1pand technological and product hori0ons -o maintain close and direct contact with our customers through consumer insights and dedicated service -o provide e1ternal and internal customer service by e1celling in functional management -o promote professionalism at all levels through education/ training and development for all human resources -o deliver annually a fair return to our valued investors and shareholders in line with industry and economy

!ision Statement:
-o be an innovative/ marketing and research oriented company -o be a leader and take advantage of our leadership position in all categories of products -o develop products in line with market potential through the means of indigenous technology using .:9 2arket our products globally

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National Food -o target innovative segments of the food market -o become a global brand

"aunching A Ne# Product:

-hese are the 8uestions which one should ask him self while launching a new product. 6ho are our customers; 6hat benefits are we going to give to our customers; 6hat feelings do we want to evoke in our customers; 6hat action are we trying to generate from our customers; How are we different from our competitors;

)eeping in mind all these 8uestions/ 6e/ National foods has a .:9 team who work on all these issues and then bring a new trend in market. 6e always look for the customer<s benefits and 8uality products.

Product S eci$ication:
Home cooked meals are a daily tradition in =akistani homes. 2eals that calls for hours of preparation in chopping/ peeling and grinding. Frying onions and tomatoes. Now National has simplified this entire process into three simple steps with the introduction of a complete recipe coo%ing aste. >ust add meat/ cook and voila/ enjoy some of =akistan<s most delicious cuisine.

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National Food

Product &rand:
@s National food is a known name in market/ it has already different brands in market like >ams/ ketchup/ @char/ )heer mi1/ 'ustared powder/ etc. Now National food is introducing a new brand named 'i(aa). National food is introducing the si1 different .ivaaj pastes. &iryani Paste &ombay &iryani Paste *arahi Paste +uorma Paste Shahi Curry Paste Chic%en Jal$re,i Paste

Product mar%eting strategy:

.aise consumer brand awareness/ e1citement and involvement =romote a special offer or incentive %timulate product sampling and trial 9emonstrate productAservice benefits Generate in!store or online site traffic %timulate media interest and industry bu00

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National Food

Marketing mix
Four =s are the most important factors for any company in making the marketing plan. -o be specific/ these ? =s are , =roduct ! your product+s,and services 7, =rice ! what you4ll charge customers for products and services &, =lace +distribution, ! how you will bring your product+s, together with your customers ?, =romotion ! how you will promote or create awareness of your product in the marketplace

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National Food

Now we discuss each of these =s regarding National food. 3ach of ? =s has significant importance and each will be discussed separately.

Product:
=roduct is a term covering goods / services / places / persons and ideas .

-esign and hysical characteristics:

6e are introducing a radical design that hasn<t been introduced in the market so far. It will be a multi shades rapper/ which has coo%ing aste inside. >ust add meat/ cook and voila/ enjoy some of =akistan<s most delicious cuisine.

Price:
)eeping in view the economic conditions of the country and the purchasing power of the people it won<t wise of to introduce a very e1pensive product specially when introducing a new product so our product<s price will be affordable for all the classes of people . from middle class to elite class .

+uality:
=rice and 8uality go side by side normally the thing that happens is that most of the low prices goods are poor in 8uality but as we are introducing a new product so our first main objective to pant our foot in the market so we won<t go for higher profit but we will go for better 8uality in low price.

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Classi$ication o$ roduct :
@s we all know that there are two types of products C , 'onsumer goods 7, Dusiness goods Eur product will fall in the category of consumer goods .

Classi$ication o$ consumer goods:

'onsumer goods can be divided into following categoriesC , 'onvenience goods 7, %hopping goods &, %pecialty goods ?, *nsought goods

Con(enience:
Eur product falls in the category of convenience goods/ these includes the goods for which the customer doesn<t have to put a lot efforts. =roducts like shaving creams/ toothpastes and food items fall in the category of convenience goods

Product de(elo ment:

=roduct development procedure includes the logical se8uence of one!time activities. -he activities includeC

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National Food Idea generation %creening of idea Dusiness analysis =rototype development 2arket testing 'ommerciali0ation

.dea generation:
Idea should be innovative it should something which hasn<t been introduced the market before/ our idea of a complete recipe coo%ing aste is a radical idea/ although there are powders available in market but our trend of cooking paste is a new trend/ now no need to make paste of powder/ just open the packet and use it.

Screening o$ idea:
%creening is done by management on the basis of e1perience .we have e1perienced staff in this field/ which will screen out the idea.

&usiness analysis:
-he screened idea is then e1panded in the form business proposal. In this step we analy0e whether we<ll be able to implement the idea or not. %o in our products business analysis we<ll keep in view product classification/ product characteristics/ market segmentation. 6e<ll analy0e our products markets on the basis of our target. 6e will definitely target the elite class of the society first because of their buying practices and their behavior. Eur target market is mainly the ladies specially house wives.

Prototy e de(elo ment:

=rototyping is developing of a product as a sample. If the business analysis comes out to be successful then we make a sample or prototype.

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National Food

Mar%et testing:
-his is the most important stage for the product development. @fter making the prototype/ we start to market the sample on test basis. 6e can market it on big stores with something for free so that the customer can get used to it. Er we can market our samples through our own stalls in big stores. Dy doing this we can gather the response of the customers. If the test doesn<t come out to be successful we can go back the problem area that is on any previous step that we have performed before this.

Commerciali,ation:
Ne1t comes the launch stage of the product/ and this is done after receiving the good response. If the response is successful we<ll go for full scale production. -here<s no concept of half scale production when it comes to market the product.

Product ado tion:

=roduct adoption phase includes the following stepsC @wareness Interest 3valuation -rial @doption 'onfirmation

A#areness :
For a product to be successful we should generate awareness amongst the people. -he awareness can be before the/ launch of the product or may be after. $

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National Food @nd the best way to generate the awareness is through proper marketing and advertisement.

.nterest:
@s it happens not all the people of the target market will get interested so we have to develop the interest amongst the people/ and this will again be done through proper marketing/ as our target market is ladies/ so we would market our product by giving the proper incentive because the house wives are attract by incentives. 6e can hire people to stand on our stalls who will promote the product with proper advertisement.

/(aluation:
Ne1t phase in product adoption is the evaluation5 the prospects that showed interest in our product will now judge our product on the basis of price/ 8uality and advantages as well. -his the phase in which the prospects compare different products as we have produced a 8uality product with low price so our product will definitely have an edge over the other products available in market.

Trial:
If the prospect<s evaluation comes out to be positive then comes the trial phase in which he buys the new product on trial basis. -his is where the success story of any new product starts/ that is if he was to buy ? food powders for the whole month then he would try our new paste for the delicious food as well.

Ado tion:
Ne1t is the adoption phase and this is more of the monitoring phase on the part of the company because they keep the track of the customers that have bought the product and check if the sales are increasing then it means that the product is being adopted by the customers.

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National Food

Con$irmation:
If we like the new product then we recommend others to buy it and this will result in more sales.

Ado tion categories:

, 3arly adopters 7, Gate adopters

/arly ado ters:

-hey include innovators and early adopters5 innovators are the groups of people who are the first ones to adopt any new product or style. @lthough they are very less in percentage but they hold the key to products success because they lay the basis for the rest of the people falling in this category/ which are the early adopters/ and early majority people. Doth of the last two groups in this category belong to more or less the middle class society of our country and this is a huge group to target. -he center of our target will be the innovators because they are from elite class of the society/ which are not afraid to e1periment/ and if we managed to home them/ we can easily capture the other groups as well.

"ate ado ters:

@lthough they comprise of the ($ H of the total adopters but there response towards the adoption is e1tremely slow. -hey include the common man of our society who doesn<t have enough money to e1periment. @nd it also includes the group of people called laggards. -hey are the last ones to adopt any new product5 the reason may be due to their brand loyalty. %o in the beginning they may not be in our target group but with continued advertising and marketing campaigns we can make them adopt our product too.

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National Food

Pricing:
-his is another very important aspect in marketing a product. Decause most of the people in our country adopt or buy any product because of its low price and high 8uality so our main objective is to make a low price and high 8uality product.

Selecting the ricing ob)ecti(e:

3very firm has it<s own pricing objective it may either may to. %urvive in the market -o ma1imi0e their profits 2arket share ma1imi0ation 2arket leadership

6ell the pricing objective of our company in the beginning would be to capture mass amount of market share because if we manage to do so then automatically with the passage of time we can become the market leaders and can ma1imi0e our profits.

-etermining demand:
-he determination of market demand is another very important factor in pricing/ the demand can be either elastic or inelastic . I think the demand our kind of products is elastic because there are a lot substitutes available in terms of other food mi1 of other company. %o if we introduce a high price product the greater chances are that our product won<t be very successful.

/stimating cost:
-his is the most important step in pricing/ and is a combination of fi1ed cost and variable cost. -otal cost Ifi1ed cost Jvariable cost &

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National Food

Fi0ed cost:
-his is the one time cost and will only be e1tended when we are to e1tend the business. It includes the cost of machinery/ land/ and setting up of infrastructure etcK

!ariable cost:
-his includes the cost on monthly and daily basis like raw material/ labor/ printing/ utility bills/ printing/ promotional budget etc K

Analy,ing the com etitors rice:

@nother important phase in pricing of the product is to determine the competitors price we can set the price either close to competitor/ higher than the competitor or lower than the competitor. @s our main objective is to introduce a 8uality product with lower price so we can set the price close to our biggest competitor that will be the market leader.

Selecting the ricing method:

=ricing can be of two types. , 'ost oriented pricing 7, .etrograde pricing 6e will go for retrograde pricing because there are a lot of alternatives available and competitors are also there in the market. 6e have to establish our selves in the market so it will be better to set the market price and then analy0e it whether it is suitable or not after taking out the profit margin.

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National Food

P"AC/:
9etermining the place is very important process because it is the distribution channel/ and the role of distribution channel is to take the product to its target market. 'ompany decides how/ when/ how much 8uantity and where to place the product so that it is easily accessible to the customers. Eur target is to sell our product in almost all the big cities of =akistan/ but we will take start from )arachi.

-istribution Channel
'ole o$ -istribution Channel:
2iddleman is of lot of concern for the distribution of our product. 2iddle man involvement is necessary for our product because our product is not that kind of in which we direct contact with end user/ so that<s why we need the role of middle man which specifies the role of our distribution channel.

Ty e o$ -istribution Channel:
Eur product is a consumer good. %o our distribution chain isC =roducer 6holesaler .etailers 3nd userA'onsumer

-his distribution chain will be for )arachi. In )arachi those wholesalers will be selected who deal with the major markets and big stores of all the parts of )arachi.

=roducer

@gents

6holesaler

.etailers

'onsumer

-his distribution chain will be used out side )arachi for different other cities. From where agents will be used to distribute our product in different other cities.

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National Food

.ntensity o$ -istribution Channel:

6e can say that intensity of our distribution channel will be selective/ so that we can spread our product throughout )arachi. Decause our goal is to capture the ma1imum share of market.

P'1M1T.1N:
=romotion is to inform/ persuade and remind a market of a product an organi0ation is selling in a hope to influence customer feelings and buying behavior. Dy adopting the promotional method we want to inform the market about our new product/ with the hope that it will influence the customer feelings and buying behavior.

Promotional Strategy:
Doth pull strategy and push strategy will be e1ecuted to make a good image in the minds of consumers and to promote the sale.

Push Strategy:
For an effective push strategy wholesalers and retailers will be advised to increase the sale of our product. For this purpose we will offer them different incentives and good profit margins so that they convince their customers to buy our products.

Pull Strategy:
-hrough advertisement on different 2edias and promotional campaigns we will make an image in the minds of end user about our product. Decause we are launching a new product in the market and there are number of competitors in the market/ so emphasis is to capture the ma1imum market share. 6e will concentrate on our pull strategy so that we can make leader in the market of this kind of product. B

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Promotional Cam aign:

@ survey conducted by National food advertising agency owned by company itself shows that correct media selection has helped company achieving communication goal. @s a combination of different types of media used +-L/ .adio/ Newspaper, by national food/ ($!#$ H people are accessed out of whole population of =akistan. National food spends lots of efforts on promotion of its products as management thinks it is the essence of marketing that you communicate effectively with your target customers. Following campaigns will be used for the promotion of our product.

Sales Promotion:
@dvertisement will be done in such a way that people will be waiting an1iously for our product. 6e will start giving a surprise to people that something useful for them is coming to serve them. 6e will adopt this way because our product is going to be launched for the first time in the market. 6e will also use billboards to promote our product.

Ne#s a ers:
6e know that newspaper is very effective and ine1pensive media to convey the message to target market. Newspapers will be e1tensively used to promote our product. General awareness and advantages of our products will be given to the prospect users.

Seminars:
-o start with an effective sales promotion some introductory seminars will be conducted. In which all the wholesalers will be invited from different parts of 'ity and 'ountry. -hey will be introduced with our product and sales and promotional plans. 6e will brief them about the incentives we are going to offer them. 6e will convince them about the strength of our product.

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National Food

Tele(ision 2telemar%eting3:
6e know that -L is very effective media now days. 6e can convey our message to all the prospects very effectively. 9ifferent ads and commercials will be run at different times preferably during family programs +dramas,. -o use -L intensively is our long term strategy/ which will last the image of our product in the minds of customers for a long span of time.

Public relation and Publicity:

9octors will be invited in the -L advertisement. -hey will discuss about our product because this product related to food so this could convince to the health conscious people. -hrough 9octors we will generate the idea about our product that how much it is necessary in our daily life. -hrough this we will establish an effective link between our product and user. Eur relation campaign will also target different cooking schools to generate awareness about the use of our product. 6e will try to make ladies our advocates. National food also arranges different types of funfairs/ cat #al%s/ coo%ing com etition/ %ids sho#/ singing com etition etcK to promote its products and invoke the interest among people.

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National Food

External environments
-emogra hics:
@s we all know that the si0e of population and the growth rate in our country is very healthy so it means we won<t have future threats regarding the less growth rate/ because if the growth rate of the country is low the company may have problems is selling their product in future. @ge distribution won<t be a problem as well because our main target market is ladies and we all know that there<s no shortage of young aged ladies in our country/ house hold si0e may cause a bit of concern to our product because the lesser the house hold pattern the higher would be the sales.

/conomic conditions:
3conomic conditions won<t have a great deal of effect on our product because we are only dealing a small product which is of daily use/ the only things that will effect our product economically would be the price and government ta1es. Decause as we all know our per capita income is very low so introducing a very costly product won<t be successful in order to gain a bigger market share. =lus the greater the government ta1es the lesser would be the profit margin.

Com etition:
'ompetitors are always the biggest threat to any product this threat could be in terms of brand competition/ substitutes/ image competition and rival companies. @lthough the product/ which we are introducing/ is new in it<s kind although there are a lot of food powders that are for food but this will be uni8ue in it<s kind because it is a new trend in paste form. 6e are increasing the product line of an organi0ation so definitely our company already possesses an image in the market. @lthough there are a lot of substitute brands that have powders in the market and would give us tough time but the competition will be only in terms of powder mi1 and not the other features. "

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National Food

Social and cultural $orces:

6e won<t have to fight against the social or cultural norms of the society because there<s no opposition to the rivaaj paste/ everyone uses different masala mi1 in his house. Eur geography/ norms/ values/ climate/ traditions etc K does not posses any opposition to this .

Political and legal $orces:

=olitical and legal forces will affect our product. For instance if the government is business oriented then definitely they would promote the business/ the government would give more incentives to business companies in order to boost the economy. -he incentives could be the in the form of less wealth ta1es etcK

Technology:
-echnology plays a very vital role in the product success .use of technology helps in attracting people and making a better 8uality product. 6e will definitely use the latest technology/ and in our product the use to technology will be in making product design and logo. In the beginning we hire some company to print our logo and design. Dut later on we can develop our own printing section.

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National Food

Internal environments
4uman resources:
Human resources include the social capital that we hire for our company/ the employee that we hire are skilled and e1perienced because we are launching a new product so we need to have e1perienced staff which can help us in achieving our objectives in less time. National food has its proper .:9 team who works only on the product development and to maintain the 8uality as well.

Financial resources:
@rrangement of finance is a core issue/ and for that we won<t rely totally on private capital because a large amount of money will be re8uired so we will take loan as well.

.n$ormation resources:
Information about the market when introducing a new product plays a very vital role in the success or failure of the product. .ight kind of knowledge and information about the market leads to success/ information can be in terms of competitors/ and the people of our target market. -he best information source will be through communication with the normal people that kind of paste does they like and as our target market mainly are ladies so definitely they would go for something attractive.

Customers:
@ll the companies have to keep updated study of their customers and in case of National food the company has always maintained e1cellent customer retention. Lalue of customers for National food can be understood by the factors that National food spends lot of efforts +financial and human resource, on customer research. 7

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National Food

.ntermediaries:
2arketing intermediaries help the company to promote/ sell and distribute its goods to the end users. Intermediaries include resellers/ distribution firms and marketing agencies. @ll over =akistan National food has strong dealers network that are working constantly to provide National food products as well as taking care of after sales services.

S51T Analysis:
%6E- analysis plays an important role to evaluate the performance of any organi0ation. -his is most commonly followed set pattern to analy0e the strength/ weakness/ opportunities and threats. For any company strength and weakness are internal elements and threats and opportunities always come from outside the organi0ation. Now we perform a detailed %6E- analysis considering the National foods.

Strengths:
&road roduct line:
National food has very broad product line that includes different types of 2asala powders/ )heer mi1/ )etchup/ 'ustared powder/ =astes/ @char and many more..

&road Mar%et Co(erage:

National food occupies F$H market share in powder mi1 market and one very obvious reason for that is strong and very broad market coverage. @ccording to %ales and purchase 2anager National food/ they have e1cellent market coverage all over =akistan and citi0ens of each city have easy access to sales and display centers.

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Manu$acturing Com etence:

National food has engineering and technical staff of the highest caliber that is capable of manufacturing such products that differentiates National food products from its competitors. National food posses specific manufacturing competence for e1ample use of imported machinery and a high 8uality ingredients in manufacturing of powder mi1 that maintain the 8uality of product.

6ood Mar%eting S%ills:

National food<s efficient marketing team in =akistan has over the years played a crucial role in developing public awareness. National food has its own in!house advertising agency for promoting all National food<s products.

/nhanced 'esearch and -e(elo ment:

National food emphasi0es on .esearch and 9evelopment department to a great deal. 'hief e1ecutive of National food has hired a team of . : 9 himself and he makes sure that on going improvements in the e1isting National food products range is a continuous activity. 3fficient . and 9 department is considered as a vital strength of company.

&rand Name 'e utation:

National food is among those few brand names that have earned a lot on the basis of its brand reputation. However the fact is that company has seen tiring &? years of hard work to achieve this brand image. Drand name is a source of vital strength for the company and is known all over the market place.

ro riate 1rgani,ational Structure:

Ergani0ational hierarchy at National food is very functional and appropriate. 'ompany top management consists of the 'hief e1ecutive and 2anaging director. -hen there are middle managers of concerned departments like 2arketing/ =roduction/ .:9 and Finance. 7&

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National Food 'ompany believes strongly on good relationship with its human resource.

6ood $inance Management:

Finance department of National food is efficiently working to allocate resources to each of its business portfolio. Good finance management is yet another strength of company that is helping company out in assessing the e1act financial situation.

5ea%ness:
'urrently National food is operating with its full capabilities and 'ompany<s sales manager does not think that there is any internal weakness in the organi0ation. Decause 'ompany has a good repute in market and working with full concentration to improve its image in the minds of people.

ortunities:
/0 anding into $oreign mar%ets:

-he biggest opportunity for National food currently is e1ploiting new market segments. @fter achieving good market coverage all over =akistan/ National food is now trying to e1pand its business in 2iddle 3ast and 'entral @sian states.

/0 ansion o$ core business:

National food started as powder mi1 producers but soon after gaining rapid market shares in powder mi1/ 'ompany considered e1pansion of core business as a major opportunity. -oday 'ompany has wide range of products that it has achieved by e1panding the core business.

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National Food

/ntering 'elated &usiness

3ntering those new businesses that are related to current business is a high potential opportunity. For e1ample company has entered the related businesses like )heer mi1/ )etchup/ 'ustared powder/ =astes/ @char and many other things.

Threats:
Ne# /ntrants:
-he biggest threat for the 'ompany has been the entry of new competitors in the market has made National food management think that they will have to adjust the pricing or to provide some handsome incentives to customers in competition with other brands in market because 'ompany does not want to lose its market share.

No barriers on /ntry:
Government has not fi1ed any hard rules upon the entrants in this industry. @ny group of companies that is financially strong can enter this industry without facing any strict barriers. -his is another threat for National food that more and more entrants coming in this industry and the profit margin shrinking gradually.

Ne# $orm o$ .ndustry com etition:

In =akistan/ some other companies like %tar has started competing National food with its 'ustared powder and @char. It has formed a new form of industry competition. %tar is producing its products at a cheaper price and price war is already on.

6o(ernment "egislation:
-he production department of National food uses special machinery that has to be imported from abroad. Government has fi1ed a 8uota system that company cannot import 7(

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National Food it more than a specific ratio. -his 8uota system is creating a threat for company and soon company needs to find an alternative.

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