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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 blessingsfinally 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 Thee

(alone) we ask for help. Show us the straight path, the path of thosewhom thou hast favored. Not the path of those who earn thine wrathnor of those who go astray.

Mr. Jahangir Sadiq:

I would like to thank my respected teacher for giving me this opportunity to work forthe National food project. In this project I learned a great deal about the marketing

concepts that I have been studying.

My Parents:

I am also very thankful to my parents who support me in every walk of life and alwaysencourage 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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About The National Foods:

National Foods is a well-known name in market. It was founded in 1970 and started outas a Spice company. 3 decades later it has diversified into a versatile Food Company with

over 150 and above products and 100 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 then 7 years ago, was realized by transforming a local company into a

very dynamic and progressive management structure in line with industry practices.

Competent Human Resources from within the company have fuelled tremendous growthby 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 thechanging market trends.

In this innovative age of ever changing lifestyles, fuelled by the rampant development oftechnology; 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.

The brand delivers its ultimate promise by consistently delivering value to its consumers.National Foods enriches family relationships by bringing people together for familytraditions, feasts, and seasonal holidays and of course - everyday life.

We bring value to all our customers by enriching their experience of using our products inways that help them become the center of attraction for their family that wins praise

every time.

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Company Mission: To deliver consistent quality to our customers using pure ingredients,

authentic recipes and the best available technology

Dedicated to continuous improvement through active alliances withinternational 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 functionalmanagement

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 in

line with industry and economy

Vision Statement:

To be an innovative, marketing and research oriented company

To be a leader and take advantage of our leadership position in all categories of

products

To develop products in line with market potential through the means of

indigenous technology using R&D

Market our products globally

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To target innovative segments of the food market

To become a global brand

Launching A New Product:

These are the questions which one should ask him self while launching a new product.

Who are our customers?

What benefits are we going to give to our customers?

What feelings do we want to evoke in our customers?

What action are we trying to generate from our customers?

How are we different from our competitors?

Keeping in mind all these questions, We, National foods has a R&D team who work on

all these issues and then bring a new trend in market. We always look for the customersbenefits and quality products.

Product Specification:

Home cooked meals are a daily tradition in Pakistani homes. Meals that calls for hours of

preparation in chopping, peeling and grinding. Frying onions and tomatoes. Now Nationalhas simplified this entire process into three simple steps with the introduction of a

complete recipe cooking paste. Just add meat, cook and voila, enjoy some of Pakistans

most delicious cuisine.

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Product Brand:

As National food is a known name in market, it

has already different brands in market like Jams,

ketchup, Achar, Kheer mix, Custared powder, etc.Now National food is introducing a new brand

named Rivaaj.

National food is introducing the six different

Rivaaj pastes.

Biryani Paste

Bombay Biryani Paste

Karahi Paste

Quorma Paste

Shahi Curry Paste

Chicken Jalfrezi Paste

Product marketing strategy:

Raise consumer brand awareness, excitement and involvement

Promote a special offer or incentive

Stimulate product sampling and trial

Demonstrate product/service benefits

Generate in-store or online site traffic

Stimulate media interest and industry buzz

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Marketing mixFour Ps are the most important factors for any company in making the marketing plan. To

be specific, these 4 Ps are

1) Product - your product(s)and services

2) Price - what you'll charge customers for products and services3) Place (distribution) - how you will bring your product(s) together with your customers

4) Promotion - how you will promote or create awareness of your product in themarketplace

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Now we discuss each of these Ps regarding National food. Each of 4 Ps has significantimportance and each will be discussed separately.

Product:

Product is a term covering goods , services , places , persons and ideas .

Design and physical characteristics:

We are introducing a radical design that hasnt been introduced in the market sofar. It will be a multi shades rapper, which has cooking paste inside. Just add meat, cook

and voila, enjoy some of Pakistans most delicious cuisine.

Price:

Keeping in view the economic conditions of the country and the purchasingpower of the people it wont wise of to introduce a very expensive product specially

when introducing a new product so our products price will be affordable for all theclasses of people . from middle class to elite class .

Quality:

Price and quality go side by side normally the thing that happens is that most of

the low prices goods are poor in quality but as we are introducing a new product so our

first main objective to pant our foot in the market so we wont go for higher profit but wewill go for better quality in low price.

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Classification of product :

As we all know that there are two types of products :

1) Consumer goods

2) Business goods

Our product will fall in the category ofconsumer goods .

Classification of consumer goods:

Consumer goods can be divided into following categories:

1) Convenience goods

2) Shopping goods

3) Specialty goods

4) Unsought goods

Convenience:

Our product falls in the category of convenience goods, these includes the

goods for which the customer doesnt have to put a lot efforts.

Products like shaving creams, toothpastes and food items fall in the category ofconvenience goods

Product development:

Product development procedure includes the logical sequence of

one-time activities.

The activities include:

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Idea generation

Screening of idea Business analysis

Prototype development

Market testing

Commercialization

Idea generation:

Idea should be innovative it should something which hasnt been

introduced the market before, our idea of a complete recipe cooking paste is a radical

idea, although there are powders available in market but our trend of cooking paste is anew trend, now no need to make paste of powder, just open the packet and use it.

Screening of idea:

Screening is done by management on the basis of experience .we haveexperienced staff in this field, which will screen out the idea.

Business analysis:

The screened idea is then expanded in the form business proposal. Inthis step we analyze whether well be able to implement the idea or not.So in our products business analysis well keep in view product classification, product

characteristics, market segmentation.

Well analyze our products markets on the basis of our target. We will definitely target theelite class of the society first because of their buying practices and their behavior.

Our target market is mainly the ladies specially house wives.

Prototype development:

Prototyping 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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Market testing:

This is the most important stage for the product development. After

making the prototype, we start to market the sample on test basis. We can market it on big

stores with something for free so that the customer can get used to it. Or we can marketour samples through our own stalls in big stores.

By doing this we can gather the response of the customers.

If the test doesnt come out to be successful we can go back the problem area that is onany previous step that we have performed before this.

Commercialization:

Next comes the launch stage of the product, and this is done after

receiving the good response. If the response is successful well go for full scaleproduction. Theres no concept of half scale production when it comes to market the

product.

Product adoption:

Product adoption phase includes the following steps:

Awareness

Interest

Evaluation

Trial

Adoption

Confirmation

Awareness :

For a product to be successful we should generate awareness amongst thepeople. The awareness can be before the, launch of the product or may be after.

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And the best way to generate the awareness is through proper marketing and

advertisement.

Interest:

As 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. We can hire people tostand on our stalls who will promote the product with proper advertisement.

Evaluation:

Next phase in product adoption is the evaluation; the prospects that showed

interest in our product will now judge our product on the basis of price, quality andadvantages as well. This the phase in which the prospects compare different products as

we have produced a quality product with low price so our product will definitely have an

edge over the other products available in market.

Trial:

If the prospects evaluation comes out to be positive then comes the trial phase in

which he buys the new product on trial basis. This is where the success story of any new

product starts, that is if he was to buy 4 food powders for the whole month then he wouldtry our new paste for the delicious food as well.

Adoption:

Next 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 productand check if the sales are increasing then it means that the product is being adopted by

the customers.

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Confirmation:

If we like the new product then we recommend others to buy it and this

will result in more sales.

Adoption categories:

1) Early adopters2) Late adopters

Early adopters:

They include innovators and early adopters; innovators are the groups ofpeople who are the first ones to adopt any new product or style. Although 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. Both of the last two groups in this category belong to more or less themiddle class society of our country and this is a huge group to target.

The center of our target will be the innovators because they are from elite class of the

society, which are not afraid to experiment, and if we managed to home them, we caneasily capture the other groups as well.

Late adopters:

Although they comprise of the 50 % of the total adopters but there

response towards the adoption is extremely slow. They include the common man of oursociety who doesnt have enough money to experiment. And it also includes the group of

people called laggards. They are the last ones to adopt any new product; the reason may

be due to their brand loyalty. So in the beginning they may not be in our target group butwith continued advertising and marketing campaigns we can make them adopt our

product too.

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Pricing:This is another very important aspect in marketing a product. Because most of the people

in our country adopt or buy any product because of its low price and high quality so our

main objective is to make a low price and high quality product.

Selecting the pricing objective:

Every firm has its own pricing objective it may either may

to.

Survive in the market

To maximize their profits

Market share maximization

Market leadership

Well the pricing objective of our company in the beginning would be to capture massamount 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 maximize our profits.

Determining demand:

The determination of market demand is another very importantfactor 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 mix of other company. So if we introduce a high priceproduct the greater chances are that our product wont be very successful.

Estimating cost:

This is the most important step in pricing, and is a combination of fixed

cost and variable cost.

Total cost =fixed cost +variable cost

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Fixed cost:

This is the one time cost and will only be extended when we are to extendthe business. It includes the cost of machinery, land, and setting up of infrastructure etc

Variable cost:

This includes the cost on monthly and daily basis like raw material, labor,

printing, utility bills, printing, promotional budget etc

Analyzing the competitors price:

Another important phase in pricing of the product is to

determine the competitors price we can set the price either close to competitor, higherthan the competitor or lower than the competitor.

As our main objective is to introduce a quality product with lower price so we can set the

price close to our biggest competitor that will be the market leader.

Selecting the pricing method:

Pricing can be of two types.

1) Cost oriented pricing

2) Retrograde pricing

We will go for retrograde pricing because there are a lot of alternatives available and

competitors are also there in the market. We have to establish our selves in the market so

it will be better to set the market price and then analyze it whether it is suitable or not

after taking out the profit margin.

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PLACE:

Determining 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. Company

decides how, when, how much quantity and where to place the product so that it is easilyaccessible to the customers.

Our target is to sell our product in almost all the big cities of Pakistan, but we will take

start from Karachi.

Distribution Channel

Role of Distribution Channel:

Middleman is of lot of concern for the distribution of our product. Middle man

involvement is necessary for our product because our product is not that kind of in which

we direct contact with end user, so thats why we need the role of middle man whichspecifies the role of our distribution channel.

Type of Distribution Channel:

Our product is a consumer good. So our distribution chain is:

Producer Wholesaler Retailers End user/Consumer

This distribution chain will be for Karachi. In Karachi those wholesalers will be selected

who deal with the major markets and big stores of all the parts of Karachi.

Producer Agents Wholesaler Retailers Consumer

This distribution chain will be used out side Karachi for different other cities. From

where agents will be used to distribute our product in different other cities.

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Intensity of Distribution Channel:

We can say that intensity of our distribution channel will be selective, so that we can

spread our product throughout Karachi. Because our goal is to capture the maximumshare of market.

PROMOTION:

Promotion is to inform, persuade and remind a market of a product an organization is

selling in a hope to influence customer feelings and buying behavior.By 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:

Both pull strategy and push strategy will be executed 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:

Through advertisement on different Medias and promotional campaigns we will make an

image in the minds of end user about our product. Because we are launching a new

product in the market and there are number of competitors in the market, so emphasis is

to capture the maximum market share. We will concentrate on our pull strategy so that wecan make leader in the market of this kind of product.

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Promotional Campaign:

A survey conducted by National food advertising agency owned by company itself showsthat correct media selection has helped company achieving communication goal. As a

combination of different types of media used (TV, Radio, Newspaper) by national food,

50-70 % people are accessed out of whole population of Pakistan.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:

Advertisement will be done in such a way that people will be waiting anxiously for ourproduct. We will start giving a surprise to people that something useful for them is

coming to serve them. We will adopt this way because our product is going to be

launched for the first time in the market.We will also use billboards to promote our product.

Newspapers:

We know that newspaper is very effective and inexpensive media to convey the message

to target market. Newspapers will be extensively used to promote our product. General

awareness and advantages of our products will be given to the prospect users.

Seminars:

To start with an effective sales promotion some introductory seminars will be conducted.

In which all the wholesalers will be invited from different parts of City and Country.They will be introduced with our product and sales and promotional plans. We will brief

them about the incentives we are going to offer them. We will convince them about the

strength of our product.

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Television (telemarketing):

We know that TV is very effective media now days. We can convey our message to all

the prospects very effectively. Different ads and commercials will be run at different

times preferably during family programs (dramas). To use TV intensively is our long term

strategy, which will last the image of our product in the minds of customers for a longspan of time.

Public relation and Publicity:

Doctors will be invited in the TV advertisement. They will discuss about our productbecause this product related to food so this could convince to the health conscious people.

Through Doctors we will generate the idea about our product that how much it is

necessary in our daily life. Through this we will establish an effective link between ourproduct and user.

Our relation campaign will also target different cooking schools to generate awareness

about the use of our product. We will try to make ladies our advocates.

National food also arranges different types of funfairs, cat walks, cooking competition,

kids show, singing competition etc to promote its products and invoke the interestamong people.

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External environmentsDemographics:

As we all know that the size of population and the growth rate in our

country is very healthy so it means we wont have future threats regarding the less growthrate, because if the growth rate of the country is low the company may have problems is

selling their product in future. Age distribution wont be a problem as well because our

main target market is ladies and we all know that theres no shortage of young aged ladiesin our country, house hold size may cause a bit of concern to our product because the

lesser the house hold pattern the higher would be the sales.

Economic conditions:

Economic conditions wont 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 taxes.Because as we all know our per capita income is very low so introducing a very costly

product wont be successful in order to gain a bigger market share. Plus the greater the

government taxes the lesser would be the profit margin.

Competition:

Competitors are always the biggest threat to any product this threat could

be in terms of brand competition, substitutes, image competition and rival companies.

Although the product, which we are introducing, is new in its kind although there are alot of food powders that are for food but this will be unique in its kind because it is a

new trend in paste form. We are increasing the product line of an organization so

definitely our company already possesses an image in the market. Although there are a lot

of substitute brands that have powders in the market and would give us tough time but thecompetition will be only in terms of powder mix and not the other features.

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Social and cultural forces:

We wont have to fight against the social or cultural norms of

the society because theres no opposition to the rivaaj paste, everyone uses different

masala mix in his house. Our geography, norms, values, climate, traditions etc does

not posses any opposition to this .

Political and legal forces:

Political and legal forces will affect our product. For instance if

the government is business oriented then definitely they would promote the business, thegovernment would give more incentives to business companies in order to boost the

economy. The incentives could be the in the form of less wealth taxes etc

Technology:

Technology plays a very vital role in the product success .use of technology

helps in attracting people and making a better quality product.We will definitely use the latest technology, and in our product the use to technology willbe in making product design and logo. In the beginning we hire some company to print

our logo and design. But later on we can develop our own printing section.

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Internal environments

Human resources:

Human resources include the social capital that we hire for ourcompany, the employee that we hire are skilled and experienced because we are

launching a new product so we need to have experienced staff which can help us in

achieving our objectives in less time. National food has its proper R&D team who worksonly on the product development and to maintain the quality as well.

Financial resources:

Arrangement of finance is a core issue, and for that we wont rely

totally on private capital because a large amount of money will be required so we will

take loan as well.

Information resources:

Information about the market when introducing a new product

plays a very vital role in the success or failure of the product. Right kind of knowledgeand information about the market leads to success, information can be in terms ofcompetitors, and the people of our target market.

The 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 theywould go for something attractive.

Customers:

All the companies have to keep updated study of their customers and in case of National

food the company has always maintained excellent customer retention. Value of

customers for National food can be understood by the factors that National food spendslot of efforts (financial and human resource) on customer research.

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Intermediaries:Marketing intermediaries help the company to promote, sell and distribute its goods to

the end users. Intermediaries include resellers, distribution firms and marketing agencies.

All over Pakistan National food has strong dealers network that are working constantly toprovide National food products as well as taking care of after sales services.

SWOT Analysis:

SWOT analysis plays an important role to evaluate the performance of any organization.This is most commonly followed set pattern to analyze the strength, weakness,

opportunities and threats. For any company strength and weakness are internal elementsand threats and opportunities always come from outside the organization.

Now we perform a detailed SWOT analysis considering the National foods.

Strengths:

Broad product line:

National food has very broad product line that includes different types of Masala

powders, Kheer mix, Ketchup, Custared powder, Pastes, Achar and many more..

Broad Market Coverage:

National food occupies 80% market share in powder mix market and one very obvious

reason for that is strong and very broad market coverage. According to Sales and

purchase Manager National food, they have excellent market coverage all over Pakistan

and citizens of each city have easy access to sales and display centers.

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Manufacturing Competence:

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 example use of

imported machinery and a high quality ingredients in manufacturing of powder mix thatmaintain the quality of product.

Good Marketing Skills:

National foods efficient marketing team in Pakistan 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 foods products.

Enhanced Research and Development:

National food emphasizes on Research and Development department to a great deal.

Chief executive of National food has hired a team of R & D himself and he makes sure

that on going improvements in the existing National food products range is a continuous

activity. Efficient R and D department is considered as a vital strength of company.

Brand Name Reputation:

National food is among those few brand names that have earned a lot on the basis of itsbrand reputation. However the fact is that company has seen tiring 34 years of hard work

to achieve this brand image. Brand name is a source of vital strength for the company and

is known all over the market place.

Appropriate Organizational Structure:

Organizational hierarchy at National food is very functional and appropriate. Company

top management consists of the Chief executive and Managing director. Then there are

middle managers of concerned departments like Marketing, Production, R&D andFinance.

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Company believes strongly on good relationship with its human resource.

Good finance Management:

Finance department of National food is efficiently working to allocate resources to eachof its business portfolio. Good finance management is yet another strength of company

that is helping company out in assessing the exact financial situation.

Weakness:

Currently National food is operating with its full capabilities and Companys sales

manager does not think that there is any internal weakness in the organization. Because

Company has a good repute in market and working with full concentration to improve itsimage in the minds of people.

Opportunities:

Expanding into foreign markets:

The biggest opportunity for National food currently is exploiting new market segments.After achieving good market coverage all over Pakistan, National food is now trying to

expand its business in Middle East and Central Asian states.

Expansion of core business:

National food started as powder mix producers but soon after gaining rapid market shares

in powder mix, Company considered expansion of core business as a major opportunity.Today Company has wide range of products that it has achieved by expanding the core

business.

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Entering Related Business

Entering those new businesses that are related to current business is a high potential

opportunity. For example company has entered the related businesses like Kheer mix,Ketchup, Custared powder, Pastes, Achar and many other things.

Threats:

New Entrants:

The biggest threat for the Company has been the entry of new competitors in themarket 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 Company does not want to lose its market share.

No barriers on Entry:

Government has not fixed any hard rules upon the entrants in this industry. Any group ofcompanies that is financially strong can enter this industry without facing any strict

barriers. This is another threat for National food that more and more entrants coming in

this industry and the profit margin shrinking gradually.

New form of Industry competition:

In Pakistan, some other companies like Star has started competing National food with its

Custared powder and Achar. It has formed a new form of industry competition. Star isproducing its products at a cheaper price and price war is already on.

Government Legislation:

The production department of National food uses special machinery that has to beimported from abroad. Government has fixed a quota system that company cannot import

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it more than a specific ratio. This quota system is creating a threat for company and sooncompany needs to find an alternative.

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