Marketing Plan of NF_Final

7/30/2019 Marketing Plan of NF_Final

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GROUP MEMBERS:

Muhammad Yousuf Mehmood 2010-1-06-11880Salman Saleh 2010-3-11-10992

Muhammad Masood Riaz 2010-3-11-10996Muhammad Misbah-ul-Haq Siddiqui 2010-3-11-10979Hammad Malik 2010-1-03-11873


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CURRENT MARKET SITUATION


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MARKET DESCRIPTIONWants:

In our society most of the people like spicy foods because it is the part of our culture. In other countrieslike China, Japan, Korea commonly people dislike to eat spicy foods because of their culture.

Demands:Meals that call for hours of preparation in chopping, peeling and grinding, frying onions and tomatoes.National has simplified this entire process of cooking into simple steps.


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Macro Influence:Such as demographic, economic condition, culture, etc.

Micro Influence:It consist of suppliers, marketing intermediaries.

ENVIRONMENT FACTORS


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DemographicsEconomic conditionsCompetition

Social and cultural forcesPolitical and legal forcesTechnology

EXTERNAL MACRO ENVIRONMENT


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MarketThe company management is trying to expand its market by increasing its sales volume so, here wehave raw information related to sales is as under:Local sales: 106,304,014

Growth over last year: 24.68%Export sales: 101,177,657Growth over last year: 10.20%Corporate growth over last year: 20.12%

SuppliersNow a day NATIONAL FOODS is focusing on its company's suppliers and the company has a strongnetwork of suppliers in different regions. The details related to its product supply is as under:1. SINDH2. PUNJAB3. KHYBER PAKHTOONKHWA4. BALOCHISTAN

EXTERNAL MICRO ENVIRONMENT


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INTERNAL ENVIRONMENTHuman resourcesFinancial resourcesInformation resources

CustomersIntermediaries


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PRODUCT REVIEWProduct line

NF has a range of over 110 products in 12 major categories.

Plain spicesChilli, Coriander, Turmeric, Black Pepper, Cumin Seeds etc.

Chinese Salt And Vinegar Chinese Chilli Sauce, Chinese Salt, Chinese Soya Sauce, Malt Vinegar (Brown), etc.

PicklesCarrot Pickle, Mango, Pickle Vinegar, Pickle (Mix), Kasaundi Pickle, etc.

KetchupTomato and Chili.

Jams, Jellies And Marmalades Apple Jam, Apply Jelly, Strawberry Jam, Strawberry Jelly, etc. Snacks

Chat Masala Powder, Chatpata Pakora Mix, Dahi Bara Powder, etc. Desserts

Banana Custard Sauce, Vanila Custard, Strawberry Custard etc Recipe Masalas

Achar Gosht, Fish Masala, Bombay Biryani Masala, Qourma Masala, etc.


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Prices and Gross Margins of the Major Products In Product Line

Plain Spices Price (Rs) GrossMargin

Pickles Price (Rs) GrossMargin

Ketchups Price(Rs)

GrossMargin

Chili Powder 120 37 Mango Pickle 80 23 Chili Garlic 132 42

Garam Masala 28 9 Chili Pickle 85 24 Tomato 127 39

Ginger Powder 45

15 Lemon Pickle 85

24Hot & Spicy 132 40

Recipe Masala Price (Rs) GrossMargin

Jam & Jelly Price (Rs) GrossMargin

Deserts Price(Rs)

GrossMargin

Fish Masala 70 22 Apple Jam 92 28 Banana Custard 48 14

Bombay Biryani 37 13 Mango Jam 92 28 Mango Custard 48 13

Qourma Masala 70 20 Orange Jam 92 28 Kheer Mix 50 15


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2005 2006 2007 2008 2009 2010

1,533,879

1,847,700

2,391,058

3,061,746

3,758,706

4,095,624

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

National Foods Sales


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COMPETITORS ANALYSIS


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Pakistan is the worlds ninth largest marketwith an estimated 170million consumers .

The growth rate of retailoutlets is 15 % in the1990s, presentlyresting at 286,774 outlets .

PAKISTANS FOOD MARKET


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BIGGER THE MARKETBIGGER THE


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Spices/Ingredients

Jams/Ketchups

DesertsChineseand foodhealth

MAJOR SEGMENTS of COMPETITION


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Segments Competitors

Spices/ Ingredients/Snacks and RecipeMasalas

Shan foods,Mehran, Chef pride

Jams/ Ketchups Michelles, Ahmed, Shezan

Chinese and foodhealth

Shan foods

Desserts Rafhan, Laziza

COMPETING BRANDS


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Spices/ Ingredients/ Snacks andRecipe Masalas Market leader.Stiff competition.High brand loyalty .


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Jams & KetchupsLags behind Mitchells .

A need to target young urban populationwith strong promotional campaign.

Desertsand

Salts


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DISTRIBUTION CHANNELS

Region Name Market Share

Sindh 45%

Punjab 45%

KP and Balochistan 10%

Strong distribution structure required inSindh region


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THREATS & OPPURTUNITIES


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SWOT Analysis

Strengths Weaknesses

Oppurtunities Threats

SWOT


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NFL has Over 110 products. NFL has 165 and above SKUs (Stock Keeping Unit) for the

domestic market. NFL has over 100 different products for the international

markets. NFL has been serving since 1970 with huge distribution

channels. NFL has a Corporate Gross Sales Growth of over 25%. NFL is recognized as being one of the 10 best Human

Resource Managed companies in Pakistan. NFL got Rs. 3 Billion plus turnover including USD 4.64 million

of export. NFL is the clear leader of products in the Canadian market.


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Strengths Weight Rating Weighted Score

NFL has Over 110 products 0.1 4 0.4

NFL has 165 and above SKUs (Stock KeepingUnit) for the domestic market

0.09 3 0.27

NFL has over 100 different products for theinternational markets

0.06 4 0.24

NFL has been serving since 1970 with huge

distribution channels 0.2 4 0.8

NFL has a Corporate Gross Sales Growth of over 25%

0.1 3 0.3

NFL is recognized as being one of the 10 bestHuman Resource Managed companies inPakistan

0.1 3 0.3

NFL got Rs. 3 Billion plus turnover includingUSD 4.64 million of export

0.2 3 0.6

NFL is the clear leader of products in theCanadian market

0.15 3 0.45

TOTAL 1 3.36


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Weaknesses

NFL has poor internal control and monitoring whenperforming audit.

NFL does not have a strong advertising campaign likeMitchells.


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Weaknesses Weight Rating Weighted Score

NFL has poor internalcontrol and monitoringwhen performing audit

0.45 3 1.35

NFL does not have astrong advertisingcampaign like Mitchells

0.55 3 1.65

TOTAL 1 3


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Growing export of spices from Pakistan.

Growing demand for ready made mixed herbs,spices & sauces.

New markets being developed for enhancinghorizontal penetration in various segments.

Launch of NFL products in India through anauthorized distributor.


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Opportunities Weight Rating Weighted Score

Growing export of spicesfrom Pakistan

0.25 3 0.75

Growing demand for readymade mixed herbs, spices& sauces

0.3 4 1.2

New markets beingdeveloped for enhancingHorizontal penetration invarious segments

0.2 3 0.6

Launch of NFL products in

India through anauthorized distributor

0.25 3 0.75

TOTAL 1 3.3


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Political unrest in the country isskyrocketing costs (inflation).

Tax policies are fluctuating.


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Threats Weight Rating Weighted Score

Political unrest in thecountry is skyrocketingcosts (inflation)

0.55 3 1.65

Tax policies arefluctuating

0.45 3 1.35

TOTAL 1 3


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MARKETING OBJECTIVES


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CORPORATEOBJECTIVES


Developing newproducts

Improvingmarket share

Diversification

Improvingprofitability

Increasing brandawareness

Re-launch of

product

Understandingcustomers needs

The organisationsoverall goals



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MARKETING OBJECTIVE STATEMENT

To be a Rs. 50 billion food company by

the year 2020 in the convenience food

segment by launching products and

services in the domestic and

international markets that enhance

lifestyle and create value for our

customers through management

excellence at all levels.


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MARKETING STRATEGIES, ACTION PLANS &RECOMMENDATIONS


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MARKET SEGMENTATION

Geographic Demographic

Psychographic Bahavioral

SEGMENTATION


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Geographic World region Over 35 countries\5 continents

Countries specificregions

All (East, West, North, South)

Density Urban

Climate Any


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DemographicGender Female (majority)

Age Above 23 Years - CookingWomen

Family size Any

Income group Seekers, Strivers, GlobalIndians


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Psychographic

Social Class Middles, Upper Middles,Lower Uppers, Uppers Uppers

Lifestyles Achievers, Strivers


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Behavioral Occasions Regular, special occasion, holiday,

seasonalBenefit sought Convenience, Fast Preparation,

Traditional vales attached

Loyalty status High

Readiness stage Aware, Informed, interested,

desirousAttitude towardsproduct

Positive


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MARKET TARGETING

1 Segment sizeand growth

2 Segmentstructuralattractiveness

3 CompanyObjectives


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EMS Evaluating Market Segments

SMS Selecting Market Segments

UM Undifferentiated Marketing

MP Market Positioning

MARKET TARGETING


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MARKET POSITIONING

Hamary Khaaney hamary tehwaar! (Our food our culture!)

Through:

Celebrating Vitality

Celebrating Love

Celebrating Friendship

Celebrating Family


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BRAND PROMISE


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BRAND POSITIONING

- Quality, Hygiene and Purity

Brand position in customer mind


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RECOMMENDAITONS FOR DIFFERENTIATION

Desi Recipe

Individuals Living

Sugar free (Diet desserts)

Service differentiation

People differentiation


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MARKETING STRATEGY/MIX

ProductPrice

PlacePromotion


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PRODUCTSClassification of Product

National Foods products fall in the category of consumer goods.

Product Portfolio:

Range of over 110 products in 12 major Product Lines.

Market Leaders in: Recipe Masalas Salt Pickles Vinegar & Chinese Salt


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Market Opportunities

Need to extent their Dessert & Snacks product-lines as currentlythis market segment is a Question Mark segment .Look for expanding the Product Portfolio by exploring marketsegments like:

Packed Instant Juices Ready-to-cook Foods

Introduction of Bulk Masala Packs for whole-sellers, restaurantusers as SHAN did in mid 2010 & was successful.


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PROMOTION

To inform the market about their productsCompetitive positioning in the mind of consumers

Promotional Strategies:PUSH Strategy

Wholesalers and retailers will be advised to increase sale By offering different incentives, good profit margins, Credit

benefits etcPULL Strategy

Through advertisement on different mediums PROMOTIONAL CAMPAIGN through telemarketing, promotional

sales, public seminars.


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Other Cheaper but effective ways:

Use of Newspapers, magazines for promoting their products moreaggressively.

Use of Online Marketing via social sites, public forum etc.

Free Sampling to final consumers.


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PLACE

Inventory of both raw material to end-products

Market CoverageProducts for massesExporting to more than 35 countries

Outlets Super markets , small to medium General stores , & Bachat bazaars.

Channels of suppliesMarket penetration rely on third party distributors.


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SUPPLY CHAIN MODEL

Distribution chain is for Karachi.

Distribution outside Karachi.

PRODUCER WHOLESELLER RETAILER CONSUMER

PRODUCER AGENT WHOLESELLER RETAILER CONSUMER


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PRICE

Selecting the pricing objectivesSurvive in the market

To maximize their profits

Market share maximization

Market leadershipDemand for National Food products is Elastic

Analyzing the Competitors Price


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COMPETITIVE PRICING MODEL:


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BUDGET

Marketing Plan considers use of private capital & use other sources likeTFCs, stock markets, bank financing.

The Forecasting Budget reflects:

Budget provides basis, after managements approval, for materials buying, production scheduling, personnel planning, and marketing operations.

ProjectedProfit-and-

LossStatement

ExpectedSales

Expected AverageUnit Price

ExpectedCost of

Production

ExpectedCost of

Distribution

ExpectedCost of

Marketing


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Financials the Focal Point at National Foods


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Competitive Profile Matrix (CPM)

CPM analysis helps marketers at National Foods inhow much budgetary resource should be used for eachcritical success factors to compete with rivals speciallySHAN & Michells

N ti l F d SHAN Mit h ll


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CriticalSuccessFactors

Weightage Rating Score Rating Score Rating Score

Advertising

0.05 3 0.15 2 0.10 3 0.15

ProductQuality

0.20 4 0.80 3 0.60 4 0.80

FinancialPosition

0.15 3 0.45 3 0.45 4 0.60

MarketShare 0.05

3

0.15

2

0.10

3

0.15

CustomerLoyalty

0.10 3 0.30 3 0.30 3 0.30

PriceCompetitiveness

0.10 4 0.40 3 0.30 3 0.30

GlobalExpansion

0.20 3 0.60 2 0.40 4 0.80

SalesDistribution

0.05 3 0.15 2 0.10 3 0.15

Management

0.10 4 0.40 3 0.30 4 0.40

Total 3.40 2.65 3.65

National Foods SHAN Mitchell s


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SETTING MARKETING GOALS

MEASURING PERFORMANCE

EVALUATES DIFFERENCES BETWEEN EXPECTED & ACTUALPERFORMANCE

MANAGEMENT TAKES CORRECTIVE ACTION

MARKETING CONTROLSThe steps:


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Review Mechanism based on periodic measures likeRevenueExpensesCustomer satisfactionNew product developments

Strategic ControlsManagements keeps check on strategic planning withOrganizational goals achievements.

Marketing Auditto assess marketing environment, marketing strategy, marketingorganization, marketing systems, marketing mix, and marketingproductivity & profitability.


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Marketing Plan of NF_Final

Documents

Transcript of Marketing Plan of NF_Final