Professional Documents
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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$ored" %ot the path of those who earn thine wrath nor of those who go astray"&
My Parents:
I am also very thankful to my parents who support me in every walk of life and always encourage me to work hard. No one can survive without the prayers of his\her mother. I am very thankful to my mother specially and I wish her a long life.
Rivaaj
National Food
Rivaaj
National Food
!ision Statement:
-o be an innovative/ marketing and research oriented company -o be a leader and take advantage of our leadership position in all categories of products -o develop products in line with market potential through the means of indigenous technology using .:9 2arket our products globally
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Rivaaj
National Food -o target innovative segments of the food market -o become a global brand
)eeping in mind all these 8uestions/ 6e/ National foods has a .:9 team who work on all these issues and then bring a new trend in market. 6e always look for the customer<s benefits and 8uality products.
Product S eci$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.
Rivaaj
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$re,i Paste
Rivaaj
National Food
Marketing mix
Four =s are the most important factors for any company in making the marketing plan. -o be specific/ these ? =s are , =roduct ! your product+s,and services 7, =rice ! what you4ll charge customers for products and services &, =lace +distribution, ! how you will bring your product+s, together with your customers ?, =romotion ! how you will promote or create awareness of your product in the marketplace
Rivaaj
National Food
Now we discuss each of these =s regarding National food. 3ach of ? =s has significant importance and each will be discussed separately.
Product:
=roduct is a term covering goods / services / places / persons and ideas .
Price:
)eeping in view the economic conditions of the country and the purchasing power of the people it won<t wise of to introduce a very e1pensive product specially when introducing a new product so our product<s price will be affordable for all the classes of people . from middle class to elite class .
+uality:
=rice and 8uality go side by side normally the thing that happens is that most of the low prices goods are poor in 8uality but as we are introducing a new product so our first main objective to pant our foot in the market so we won<t go for higher profit but we will go for better 8uality in low price.
Rivaaj
National Food
Classi$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 .
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
Rivaaj
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.
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Rivaaj
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.
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. $
Rivaaj
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.
Rivaaj
National Food
Con$irmation:
If we like the new product then we recommend others to buy it and this will result in more sales.
Rivaaj
National Food
Pricing:
-his is another very important aspect in marketing a product. Decause most of the people in our country adopt or buy any product because of its low price and high 8uality so our main objective is to make a low price and high 8uality product.
6ell the pricing objective of our company in the beginning would be to capture mass amount of market share because if we manage to do so then automatically with the passage of time we can become the market leaders and can ma1imi0e our profits.
-etermining demand:
-he determination of market demand is another very important factor in pricing/ the demand can be either elastic or inelastic . I think the demand our kind of products is elastic because there are a lot substitutes available in terms of other food mi1 of other company. %o if we introduce a high price product the greater chances are that our product won<t be very successful.
/stimating cost:
-his is the most important step in pricing/ and is a combination of fi1ed cost and variable cost. -otal cost Ifi1ed cost Jvariable cost &
Rivaaj
National Food
Fi0ed cost:
-his is the one time cost and will only be e1tended when we are to e1tend the business. It includes the cost of machinery/ land/ and setting up of infrastructure etcK
!ariable cost:
-his includes the cost on monthly and daily basis like raw material/ labor/ printing/ utility bills/ printing/ promotional budget etc K
Rivaaj
National Food
P"AC/:
9etermining the place is very important process because it is the distribution channel/ and the role of distribution channel is to take the product to its target market. 'ompany decides how/ when/ how much 8uantity and where to place the product so that it is easily accessible to the customers. Eur target is to sell our product in almost all the big cities of =akistan/ but we will take start from )arachi.
-istribution Channel
'ole o$ -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.
Rivaaj
National Food
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
Rivaaj
National Food
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.
Rivaaj
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.
Rivaaj
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. "
Rivaaj
National Food
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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Rivaaj
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
Rivaaj
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..
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Rivaaj
National Food
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&
Rivaaj
National Food 'ompany believes strongly on good relationship with its human resource.
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.
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Rivaaj
National Food
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.
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(
Rivaaj
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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Rivaaj