Business Analysis Final Project

8/13/2019 Business Analysis Final Project

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1)ACKNOWLEDGEMENTAcknowledgement will always be to Allah, the creator and most merciful and gracious, andwithout gracious of Almighty Allah the completion of this task has never been more than a

dream.

We are heartily thankful to our teacher, Mr.Ahmad Haseeb Hassan, whose encouragement,guidance and support from the initial to the final level enabled us to develop an understanding of

the project.

Lastly, we offer our regards and blessings to all of those who supported us in any respect during

the completion of the project.


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2)Executive summaryThis project is related with the product of Nurpur. The project starts with the market

analyses that comprise both the internal and external environment. This portion is

followed by consumer analyses that include market segmentation, target market, needs

evaluation.

2.1) PROJECT DESCRIPTION:We were given an appointment on our request by the Mr. Imran Shaukat . With the reference letter of

university.

We conducted a interview with Mr. Rizwan Khalid marketing Manager of Nurpur. During our visit toNurpur we studied its marketing plan, its strategies and many more.


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NURPUR

Nurpur, being the Market Leader in several dairy products, has earned a name for itself due to

consistently high quality standards. The Nurpur brand means the finest, high quality products.

Nurpur will continue to meet the consumer and customer expectations by consistently providing

products that meet the highest standards, the Nurpur standard. For Nurpur, anything else is

unacceptable.

3) Strategies plan3.1) Vision

Our vision at Nurpur is to be a transformative force in our community and world at large and to

serve as a model of a sustainable business alternative that nurtures social and economic well-being in an environmentally sensitive manner.

3.2) Mission

Nurpur is committed to supplying the consumer and our customers with the finest, high-quality

products and to leading the industry in healthy and nutritious products.

Nurpur supports these goals with a corporate philosophy of adhering to the highest ethical

conduct in all its business dealings, treatment of its employees, and social and environmental

policies.

3.3) Core Values or GoalsCustomers are at the forefront of everything we do.

Ideas are constantly challenged to develop next generation solutions.

Business is conducted openly and fairly but we compete fiercely.

Team-work is encouraged with individual flair for the best results.

Tough goals are set and we enjoy the challenge of beating them.

EnvironmentWe value preservation of the environment and sustainable organic

agriculture.

CommunityWe value mutually supportive relationships among members of our local

and global communities.


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3.4) Core competency

Oldest company of milk in Pakistan operating since Last 40 years.

Key success factors

Product Quality

Financial Position

Research & Development

Production Capacity


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Porters five Model

Porter five forces analysis is a framework for industry analysis and business strategy

development formed byMichael E. Porter ofHarvard Business School in 1979. It draws uponindustrial organization (IO) economics to derive five forces that determine the competitive

intensity and therefore the attractiveness of amarket.Attractiveness in this context refers to the

overall industry profitability.

Threat of new entrants
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Profitable markets that yield high returns may appeal to new companies. This ends in numerous

new entrants, that eventually will decrease profitability for many firms in the market. Unless of

course the entry of latest firms could be blocked by incumbents, the actual irregular profit price

will trend in the direction of zero (perfect competition).New entry can boost the threat of

competition. Nurpur is not a big organization so, it has a threat of new competitor . There is

certainly some barrier to stop the newest entrance

Accesses to distributionuse of a highly effective distribution channel is often a barrier for

brand new entrants. Effective distribution channel strategy will not only a good edge but in

addition preserves the freshness associated with perishable products. E.g Milk

High capital requirement(High Investment) for new companies to enter in the market due

to high competition

Product differentiationis a good feature from all companies which is also a barrier for new

comers.Once the brand image is formed, than it is difficult for any other firm tointroduce new brand into the market so unless and until it has low price and superior

quality.

Government policies: It is a Barrier to entry from different licensed and registered

companies which are already dealing in drinking purpose products and especially on national

level in terms of environmentally friendly packing along with the recyclable form of material

used.

Bargaining power of customers (buyers)

The bargaining power of customers is also described as the market of outputs: the ability of

customers to put thefirm under pressure, which also affects the customers' sensitivity to pricechanges. e.g. firm can implement loyalty program to reduce the buyer power.

Bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw

materials, components, labor, and services (such as expertise) to thefirm can be a source of
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power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm,

or, e.g., charge excessively high prices for unique resources.

E.g. if you are making biscuits and there is only one person who sells flour, you have no

alternative but to buy it from them

Intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is the major determinant of the

competitiveness of the industry.In case of Nurpur there is intense rivalry among the competing

sellers due to the following factors in the field of branded milk industry there are a large number

of existing competitors the strongest of all the porter analysis model its one of the most difficult

process to get a true product image in the mind of the customers and how to position against

competing brands, number of existing competitors.

Factors creating intense rivalry are as follows:Diverse competitors:

Attempts by cross-border competitors to gain stronger footholds in each others domestic

market boost the intensity of rivalry, especially when foreign rivals have lower costs or

very attractive products.

Customers switching cost:

The lower the cost of switching, the easier it is for rival sellers to raid one anoth ers

customer. In case of Nurpur, customers switching cost is low due to availability of Nestle

Milk Pack, olpers and other branded and non-branded milk. In other words consumers are

more interested in getting packed milk. If the brand that they like to consume is not

available at the spot, they would definitely ask for other rival brands all the existing

companies are offering nearly the same products along with having same core level.

High exit barriers:

Huge investments of financial, human and marketing resources are required to enter in this

business because of need for plants which can produce quality with consistency and need

for procurement at high level. After obtaining such plants it takes years to recover the fixed

costs and to breakeven so Competition tends to be more strong when it costs more to get

out of a business than to stay in and compete.

Business Analysis Final Project

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