Identifying Key Competitors

Pakistan having a huge population represents a huge market for fast moving consumer goods (FMCG) and other sort of processed food. As per the demand, this market is world 6th largest when we compare it with other world markets globally and is mostly driven by the middle and upper class of the population here. Now as the shift from rural to urban is taking place the demand is also increasing at an alarming rate creating more customer base and creating further opportunities for the companies in this specific market, as they can utilize their strengths to capture these opportunities. http://consumerpak.blogspot.com/

Now as we selected Engro Foods, we are now going to have a look at its strengths and then its key competitors in the market which as per our analysis are Nestle, Unilever and National Foods. We ae going to go through each one of these competitors and establish their strengths they have acquired over the past few years.

Engro Foods LTD

As already being discussed about the company itself, we wont go into the detail introduction but rather switch to its key beneficial factors which it has developed over time and use those key strengths to analyze and compare it with its competitors afterwards

Strengths

It possesses a strong public relation with the farmers It has gathered positive response from its customers over the past years. Carries out a strong research on the market trends. It owns a third generation plant. Has a strong brand name. It along with MCB has offered farmers with certain loan programs for financial support. In order to control loose milk segment, it has set up its own branches like Mabrook milk in Karachi. One of its major revenue product, Olpers milk is branded as all uses products capturing a vast market segment.

http://www.engrofoods.com/

Analysis of the Key Competitors in Pakistan

Nestle PakistanNestle is the one of the world's leading nutritional and health company today based on its resources. Its model is based on strong captivating brands, itsglobalpresence,innovation, environmental friendly products making a social impact and hardworking passionate people.

It is a key competitor because of the following key points and factors:Parental BackingBeing the worlds largest processed food and beverage company and with a presence in almost every country, Nestle Pakistan gets a huge backing from its parent company because it can access its large portfolio of products and services gaining insights and establishing its competitive intelligence.

ImageIt has a great image developed over the past few years based on its globalized presence which is greatly beneficial in handling bad situations and get through them which it has done due to its strong image.Quality ProductsIts products have a quality promise with them ensuring that they are consistent and hygienic. This helps them establish customer loyalty and deliver their promise in turn enhancing their image. It has no compromise for quality and uses its state of the art technology to deliver consistent brand promise.Well-developed StrategyNestle has recognizes there is a right time and place for their product; therefore,theirstrategy makesroomforadjustments and is tailored to meet the needs and demand as per the market trends. Nestle hascapturedmany markets with great sweep because of the developed strategy.Market ShareNestle juices have a highest market share almost in every strategic business units line, such as in Nestle pure life. High market share always depicts the quality of the firm & its strong management decisions. It also depicts that company ensures its highest quality assurance checks to make its products stand out and be as per the promise. It has been greatly working on its marketing to increase its market share by creating more awareness in the minds of people.Brand StrengthIt has developed very strong generic brands like Nescafe, Maggie, Nestle water and these brands are by far generic to their respective productcategories and are a means of establishing strong customer base as whenabrandbecomesgenericthenitdevelops a perception and a feelofstrength in the minds of its customers. E.g. Google, Apple etc.Research & Development TeamIts R&D dept.provides an in-depth knowledge and understanding which helps incontinuous knowledgeaboutitselfandcompetitors.Its competitive advantage can be seen as in the form of its R&D because many of its competitors dont have a R&D dept. Innovation is also at the heart of Nestle Pakistan. It has been continuously introducing new products and expanding its currentproductofferings. With theextra ordinarytechnology adoption Nestle Pakistan is able to deliver innovative products.Human Resource DepartmentNestle Pakistan has a strong HR department which depicts Nestles strong committed management of the company and its employee oriented nature as well. Its management is key success factor of the company which by its virtue is willing to devote themselves towards the betterment of the company and the society as a whole.

http://pestleanalysis.com/swot-analysis-nestle/http://www.nestle.pk/http://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/3227-nestle-ltd.html

Unilever Pakistan Foods LTDUnilever Pakistan Foods Limited develops and offer consumer and commercial based food products globally. Its product lines include noodles, soups, meal makers, sauces, and ketchups. It also produces and sells instant energy sports drinks, health drinks and desserts. Its Brand names include Rafhan, Knorr, Glaxose-D and food solutions. The company changes its name from Rafhan Best Foods to Unilever Foods in 2007. A list of its food and beverages products are as under:-Walls Ice Cream(Magnum Classic, Peddle Pop, Cornetto).-Brooke Bond-Lipton-Blue Band-Rafhan-Knorr

http://www.unilever.pk/aboutus/introductiontounilever/UPLfoofs/

StrengthsIt is a competitor based on its following strength factors Unilever Giant: It is a part of Unilever which is a global giant and one of the oldest MNC. So it enjoys a brand backing and immense reputation benefits. Management: It has a management which is experience and established well over the past few years enabling it to develop learning curves which help Unilever in overcoming bad situations here in Pakistan whether internal or external. UPL has potent managerial experience that goes back to 1958.

Image: Unilever numerous brands image are very much into the minds of people and its customers due to their appeal and age factor which helps in creating more awareness among its audience and it uses it to its benefit during its marketing. Quality Assurance: It follows strict mechanisms for ensuring quality so that the value products offer are in accordance to the quality promised by the company. The quality of UPL products is very superior with highest international standards and is made to remain consistent throughout. Promotion: Its strong marketing and advertising is also beneficial in establishing density of its campaign to its target market which is its one big advantage. Diverse Portfolio: Its competitiveness is based upon its strong portfolio segmentation which comes with wide range of products within every category it offers, e.g. Lipton, Supreme etc. which makes it further more competitive and tough to compete, giving it a sustainability in the market. Innovativeness: Innovation is also a key essential ingredient in its success as it delivers top products both internally in Pakistan and externally worldwide.http://www.unileverfoodsolutions.pk/who-we-are/newshttp://sadiqsomayari.wordpress.com/2014/12/17/unilever-pakistan-versus-engro-food-swot-analytical-comparison/

National Foods PakistanNational Foods came into existence in the year 1970 as a privately owned firm and then was gradually transformed into a public limited company. At present, National Foods is one of the big players in the food industry of Pakistan having a vast variety of above 110 products which are further categorized into 13 major categories owing to their type. It is meant for delivering convenience based food products to its consumers. http://www.nfoods.com/

Now we perform an analysis of its key factors and strengths which enable it to be direct competitor to Engro Foods LTD:Key Factors and StrengthsScope of the ProductsIt has a wide and big product line which extends to 5 major categories depending on the type of products. The major categories are listed below: Desserts Ketchups Custards Pickles MasalasOwing to this diverse range of products it is able to cater to various untapped segments as well in Pakistan which gives it a competitive edge.Broad Market CoverageIt carries this 80% market share in powder mix category just because of its coverage and distribution. It has a strong broad market coverage through its distributive penetration that it has developed. As mentioned from an internal source that National Foods has a distribution network that extends across Pakistan ensuring timely and easy access points to the consumer fulfilling the product availability factor in a very convenient manner best possible.Product Development EfficiencyA vastly competent staff from engineering discipline and from the technical perspective is deployed which works at its maximum potential, that delivers innovation in practice producing superior products than the competitors creating a differentiation between National Foods and its competitors. To maintain the product quality, it has efficient manufacturing mechanisms which are its competence that enable it to deliver consistent quality throughout the product lifetime. The mechanisms are supported by the use of imported manufacturing equipment and environmental friendly quality ingredients mix in the product development ensuring high standards of manufacturing and quality control in its products. E.g. powder mix etc.Thought-out Marketing It has its own advertising agency that promotes its products which is a big plus that helps its marketing team to create awareness for its products across Pakistan which the team has successfully done over the past years and this has played to increasing its sales and awareness across the country.Research OrientationNational Foods considers this food market to be constantly evolving thats why it has a research oriented culture considering its effectiveness in creating innovation and high quality products. The importance of research and innovation can be seen in the company as the Chief Executive himself governs a team under his supervision making sure that the innovation and creativity in the products is a never ending process and to ensure that continuous improvements take place as a result of feedback gathered after a product is launched in the market.Brand Name It has taken 34 years of hard fought effort for National Foods to create such a strong brand name which is now one of those brands that are capitalizing on this aspect of established brand names in this particular sector. This factor helps National Foods in establishing credibility among the minds of consumers for its newly launched products and to earn sustainability for its products grasping a quick mind share among its target audience as compared to its competitors.OrganizationalStructureThe company has both employee and customer oriented culture. The levels in hierarchy are functioning well and are properly managed because of its well sought out co-ordination with the culture and functions ensuring a stable organizational design. Roles are clear and there is no conflict in reporting to the superiors as Chief Executive is at the top level of hierarchy. Reporting to the CEO is the Managing Director of the company who falls in the second tier followed by the functional managers of the different departments such as Marketing, Finance etc. The company has a strong concern about its human resource as it understands that a competent human resource is an asset for long term benefits to the organization.Finance ManagementResource allocation is very crucial in the success of any company and National Foods has a competitive and capable finance department which after a thorough analysis allocates resources and funds to the companys business divisions ensuring a proper tracking and accountability. Good and timely financial management is another strength of company that helps in sorting out its current financial position and then to establish its future goals based on its finances.http://pdf.marketpublishers.com/bac_swot/national_foods_swot_analysis_bac.pdfhttp://www.wikiwealth.com/swot-analysis:national-foods-pakistan-ltdhttp://www.studymode.com/course-notes/National-Food-1712739.html

Analysis of the UAE marketThe dairy and beverages market is maturing in UAE as it is one of the upward economies considering the region it falls in. UAE also enjoys a fast growing income which is supported by a valued economy. The sector under consideration is forecasted to grow at a rate of 3.1% in this decade indicating a huge opportunity for companies to tap this market in a more compact fashion. Preference for the dairy products has also increased due to high disposable cash that the population carries which has forced the market to adopt innovation and bring out new improved products. If we consider the different category wise share of value, we will find that there exists a value share among the categories characterized by milk obtaining 41% share and cheese with 29% share. Yogurt is that category which is considered to be maturing and increasing in this decade. Milk, Yoghurt and Laban are the largest segments in the dairy market so they are mostly produced locally and the focus is on these three segments. Imports for these products are minimal and are not much relied upon as obvious by 24% imports of Milk followed by 13 % Yoghurt import and Laban constitutes for 11% import whereas in case of exports we see a healthy percentage of these components being exported. Ghee, butter and other canned milk are not produced in large amounts. http://www.marketresearch.com/MarketLine-v3883/Dairy-United-Arab-Emirates-8645813/http://www.bordbia.ie/industry/manufacturers/insight/alerts/Pages/GrowthpotentialofUAEdairymarkethighlighted.aspx?year=2013&wk=45Major shareholders in the dairy and beverages category are as under:

Manufacturer% Share

Al Ain Dairy 33%

Al Marai28%

Marmum Dairy 26%

Source: IMES Estimates

ENGRO FOODS Key Competitors in UAEAl Ain DairyIt is the largest producer of dairy products in United Arab Emirates with a market share of around 33%. It started its operations in 1981 and with the passage of time has grown sufficiently and its growth can be seen as having three cattle farms now having more than 3000 animals and a camel farm as well which has more than 200 camels.http://www.alaindairy.com/EN/Pages/default.aspx

Strengths

Products RangeAl Ain Dairy has a wide range of dairy products and beverages which are classified under the following categories: Fruit yoghurts Coffee drinks Drinking yoghurt Crme caramel Custards Fruit desserts Besides that, milk is being delivered in many flavors such as strawberry, chocolate, vanilla and banana. Fresh juices are also being produced in many flavors that are concentrated from fresh juices. The company also supplies fresh fruit juice in six flavors produced from fresh juice concentrate. As the demand for camel milk increased over the past years, the company has also inducted in its portfolio camel dairy products in order to compete in a well-mannered fashion.

Network StrengthThe company enjoys its own retail stores which are named as FARM FRESH. All the best quality dairy products catering to all ranges have been made available in these stores and there is no compromise on quality and all products are fresh and fit for health. The company also has its own fleet of vehicles having cooling mechanism inside them making sure that all the products stay fresh and are quality oriented while they are transferred to the retailers. The temperature factor is taken care of in the best possible manner possible during these transportation phases and all products are made available when required. Besides that, its salesman also monitor the cold storage temperature that retailers have when they sell products ensuring that there is no ambiguity what so ever in the freshness and quality assurance procedures.Technological AdvancementsTechnological advancements are seen to be the key factor in this region considering the climatic constraints so for this purpose AL AIN Dairy has a quality mechanism in place at its farm houses and the manufacturing plants. Recently it purchased and established new technologies namely Food Lab System Somatic Cell Counter The voluntary testing equipmentThese technologies are to ensure that the quality criteria is fulfilled and international standards are met as many of its products are exported as well so for that matter the company has made every step to ensure that quality remains consistent throughout according to ISO certifications. Somatic Cell Counter is a testing device that is used to test the raw milk, somatic cells are white blood cells that are secreted by a cow and indicate whether the raw milk is acceptable for refining or not. In this way, state of the art mechanisms ensure a tough quality standard in place. The company has also made working environments in such a way that the processing facilities deliver the best ever products. An example is of a High Efficiency Particulate Air Filter (HEPA) which filters the working environments air ensuring a healthy processing site.

Certifications and AssetsAs mentioned earlier about the different technological advancements in place, the company due to the efficient use of those technologies was able to gain HACCP certifications in 2009 which is ISO 22000-2005 certified meaning thereby that company was issued a license to export the products to international markets as well as to supply in UAE. The company being one of the leaders in the dairy market and dairy products has its own cows and procedures to increase and enhance the milk production and has taken steps to minimize the import of cows making the importance of local breed more critical and considering it as an asset for superior milk production than its competitors.http://www.studymode.com/subjects/swot-analysis-for-al-ain-dairy-page1.htmlhttp://www.rak-realestate.de/rak_pic/d03/d03i/Food%20Sector%20Report-12-1-0=10.pdf

MARMUM Dairy Dubai Investments Industries acquired Marmum Dairy Farms in 1996 partially but at present they have 100% stake at Marmum Dairy Farms which is now a subsidiary of Dubai Investments Industries. It has an annual production of around 20 million liters and is the first of its kind to gain the HACCP certification in UAE. It also has this honor of being the largest dairy production facility in UAE. It specializes in producing dairy products such as milk, creams, yoghurt and also is delivering its production in non-dairy products such as juices etc. so we can say that it has a very much diversified portfolio and is doing well to maintain and prosper its current position.http://www.marmum.ae/

StrengthsCustomer OrientationThe company enjoys a positive word of mouth from its consumers due to the fact that it is regarded as a customer centric company which puts customer first. It has a great reputation as it has a policy coupled with helping the nation at various times and is dedicated to play its part in maintain the food standards. So in this way it has created a customer and environmental friendly image that is related to social responsiveness. Maintain a quality standard has led to the great unparalleled customer experience which the company enjoys and capitalizes upon. The products are made according to the needs of the customer and the taste is kept to the customer satisfaction level using its expertise and different quality mechanisms. Due to which it has a customer loyalty which comes in the form of repeat purchases. The quality of its products is only matched by Al Ain dairy and there is a competition between the two on the quality and consistency grounds.Production EfficienciesIt has its wholly owned cows which are nurtured in such a way that they produce maximum milk. It has a capacity of producing more than 20 million liters of milk annually which signifies its procedures and mechanisms due to which it is at 3rd position in this industry with bright prospects for the future. It manages to produce such a large amount of milk just because of the fact that its cows are of high quality and require less maintenance. In this way, maximum milk production is ensured at such a low cost and the revenue generated is re-invested and the whole profit is maximized. In this way, the capital is generated for future investments. The cows are bred locally and are environment habituated which means that they are resilient to the changing conditions and thus provide a greater lactating span then the normal cows, which is an indicator of greater milk production in contrast to its competition.

Technology and SystemsNew technology expands the efficiencies and develops new markets by providing new and better prospects for the business the company operates in. It is therefore crucial for a particular business to stay updated with what is going on at present with the trends in technologies. Recently, the company bought 175-200 heifers from Australia, enabling the company to further increase its herd strength to around 3500. This new import would not only increase the milk production but also assist in ensuring a good quality milk as compared to the competitors as the new purchase is of top quality.Considering the quality control system, the company has devised a system which uses advanced engineering tools allowing it to meet the latest technological needs and requirements for the dairy production market. The tools are concerned with the handling of the standardized functions in an efficient manner making sure that the finished product meets the quality mark as promised. The tools deal with all the steps starting from the initial production to the intermediate stage leading to the finished product. The new tools not only enable the quality standards but also assist the company to bring about its strategy in coherence with its production.

Social ResponsibilityThe company has had a history of being a socially responsible organization. It has shown goodwill gestures in the past when it supported the Ministry of Social Affairs and played its part in helping the disabled people. Another instance is when it backed the UAE census board towards the implementation of the Te-dad logo which benefited in creating a caring sort of image for the company and since then it has been doing various social activities presenting a caring image. Another example is of the 2009 Be My Friend campaign in which it joined hands with ministry helping the disabled children to be inducted into the mainstream schools giving them a sense of belonging and an inclusion to the world at large. So by and large company enjoys an image a socially responsible organization and its consumers have a positive mindset about the company.

http://www.arabianbusiness.com/dubai-s-marmum-dairy-farm-eyes-big-rise-in-juice-exports-559158.html#.VMSdO_6UeW4http://uae.superbrandsmena.com/pdf/pdffile1394026753.pdf

Al Marai Al Marai is a well-established company operating in not only UAE but also in the entire Middle East region. It is renowned for its quality and has developed a name in the different households of the region. The company enjoys a powerful technical expertise driven by innovation and is famous for its customer service as well. The success of the company is centered in its commitment to quality and consistency throughout its entire set of operations which has led to its rapid growth in the region since its inception in 1977. It specializes in the manufacturing and selling of high quality dairy food products ranging from dairy to beverages to other dairy food products. It serves around 45000 customers in the Middle East region which also includes UAE. It was a private company till 2005 but then it moved to a publicly owned company and currently it has over 70,000 shareholders. After converting to a public listed company it further expanded its product range to bakery products as well improving its distribution and inculcating innovation in its norms. http://www.ukessays.com/essays/commerce/overview-of-the-company-almarai-business-essay.php

StrengthsProduct Width and Range The company has the wide range of products which are listed in the following categories.Juices: Taste and Health are the balance indicators in its juices which are made out of best fruits and are available in various flavors. The juices are as per the customer requirements and research.Snacks: The Company also delivers snacks which are tastier and the product itself is a simple one giving a good sweet taste. Yoghurts and Desserts: Quality is the main aspect of yoghurt and desserts and the health stake is never compromised upon. The products are pure and rich in calcium and there is no preservatives being added in the desserts which are 100 % pure.Culinary Products: Almarai also provides the best cheeses and an array of creams keeping in mind the mothers routine so as to provide an easy way to work in the kitchen. Dairy Liquids: Milk based dairy products are also being manufactured and are a crucial part of the entire portfolio and play their role in generating revenue.Kids Products: These products are for kids and are meant for fun times. It also includes a brunch which is healthy and delicious for kids.

Product Positioning and StrategyAlmarai is successful in product positioning and strategy because it has a unique and novel infrastructure which includes the different entities such as farms, operations and a system ensuring the availability of products termed as a go to market system. Product differentiation is also at the heart of the company as in 2007 it launched its fresh juices to complement its other dairy products in the market and also added bakery products to its portfolio in the expansion phase. It has a differentiation strategy in the sense that it offers flavored milk which is UHT treated and targeted at kids which falls in the kids product category and this particular category then gives a chance to further launch new and innovative products targeted at kids giving a differentiation benefit to the company. So in a way the products are positioned in a way that they occupy a mind share of the target and fall in their evoked set which is the plus point that the company enjoys with investment in its marketing.Competitive Price DeterminationAnother strength of the company is its pricing as it is surrounded by competition so it ensures that its products are priced in such a way that they over power their competitors and consumer end up buying them. Price decision is taken on the basis of competitive price making i.e. what the competitor is offering. For example, all branded products are priced between 2 to 4 dirhams so owing to this criteria a pack of juice having a weightage of 300 ml is priced at 2 dirhams instead of 2.5 which is the competitive offering, thereby giving the company a price differentiation as well. The customer is given an image of low cost quality products which seem affordable to the customer.Advertising and PromotionsFor the marketing and awareness of the products, various mediums are used which are as under: Newspapers Radio Network Campaign Discounts TVCs Billboards and Holdings Social MediaThe above mentioned mediums are used to spread awareness among the target audience and to interact with them. Taste is being emphasized and the discount coupons are also marketed bringing an inflow of customers to purchase the product. Products are also offered on promotional discount basis giving a signal of goodwill to gesture to the consumers hence increasing the profit margin due to repeat purchases as it does in case of its juices by offering them on a discount basis frequently and using the above mentioned mediums effectively gaining a competitive edge in the region. TVCs are also designed in such a way to attract majority of the target audience and in case of kids the ads are quite attractive and the kids feel resonating with the ad in turn initiating a purchase momentum among its target audience. Billboards are also used to spread knowledge and informative marketing is done through these billboards at various locations. So the company uses marketing to its advantage reaping revenues through increased purchases.Distribution NetworkThe company has a distribution network that spreads to more than 42000 shops within the Middle East daily. It enjoys a huge fleet of transport network which delivers the products from different intermediate locations to the final point of purchase location. The intermediate locations include the processing plants, the dairy farms and the manufacturing sites. The transport mechanism is such that ensures the packaging of the product remain intact and the freshness stays as per the standard temperatures prescribed by the international standards. The whole process is developed and implemented in a way to ensure product safety and long lasting. The products are delivered to the markets and grocery stores. The company then gains the upcoming demands from the supermarkets and capitalizes on increasing demands.

Technological InnovationAlmarai has the second largest central processing plant and also acquires a cheese plant as well. It has invested heavily in the advancement of its technological equipments which are installed at various production facilities. It also includes an advance planning and forecasting system which manages the production and demand supply mechanism giving a leverage to the company. A system for recruitment is also there which ensures that the right person gets selected for the right job.In short following are the key factors that make Almarai a key competitor to Engro Foods: It is a market leader if we consider the entire gulf market and not only UAE and its fresh products are available throughout the region.

It has tight cost controls mechanisms in place and ensures a minimum waste level percentage as compared to its competitors increasing its efficiency in the whole production process. It also enjoys a state of the art quality process system in place which is supported by:

- Integrated supply chain and replenishment system. - Marketing and Promotional expertise coupled with sales benefits. - Efficient distributive network which is further scalable. - Updated technological improvements throughout its lifecycle. The companys expansion in the form of acquisitions and mergers.

http://www.termpaperwarehouse.com/essay-on/Almarai-Swot-Analysis/66608http://www.ukessays.com/essays/commerce/overview-of-the-company-almarai-business-essay.phphttp://www.kippreport.com/fcs/almarai-vs-al-rawabi/