Global Marketing Nirala Sweets

FDI and Marketing Plan of Nirala for Bahrain & USAGlobal Marketing

Prof. Imran Qureshi

Nadeem Muzaffar Muhammad Ali Abbas 2092-fms/bba/f07 2077-fms/bba/f07

Global Marketing Nirala Sweets

Acknowledgement

All praises and thanks for Almighty ALLAH

who is entire source of knowledge and

wisdom delivered to mankind.

After ALLAH all praises and thanks are

for his dearest prophet Hazrat Muhammad (S.A.W.W)

for source of knowledge and

guidance.

We also deem it my duty to acknowledge

the help we have received from many people

during this project. We wish to express

my sincere thanks to Prof. Imran Quraishi,

for his expert advice and encouragement,

in the preparation of this project.

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EXECUTIVE SUMMARY

This Project gives its reader a complete view of the Primary steps taken by Nirala Sweets in

making foreign direct investment in Bahrain & USA. The Company’s marketing plan has been

specially designed for entering two foreign markets assumed highly demanding and

profitable. The report firstly includes complete introduction of the Company, their

organizational set-up, whole range of their products and then the preliminary steps taken by

the Company before entering destination countries i.e. CSA and FSA.

Then comes the introduction of the destination countries, their economical condition and

demand lying within these rapidly growing markets with the global perspective of Pakistani

traditional sweets and their manufacturers.

Complete mode of entry as a foreign direct investor with marketing plan is given inside with

SWOT analysis of the Company at last.

We strongly hope that this small effort is going to be proved beneficial for food

manufacturers and typically traditional food manufacturers likely to enter foreign markets in

near future and a healthy source of information for readers.

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ContentsINTRODUCTION........................................................................................................................1

History.................................................................................................................................. 1

Vision.................................................................................................................................... 1

Core Values...........................................................................................................................1

Our team.............................................................................................................................. 1

Companies............................................................................................................................2

Anmol Company................................................................................................................2

N Design............................................................................................................................2

Nirala Canada Ltd..............................................................................................................3

Nirala Dairy (Pvt) Ltd.........................................................................................................3

Nirala (Pvt) Ltd..................................................................................................................3

Nirala (UK) Ltd...................................................................................................................3

Taj Trading LLC..................................................................................................................3

Mithai.......................................................................................................................................4

Regular Mithai......................................................................................................................4

Special Mithai....................................................................................................................... 4

Sugar-Free Mithai.................................................................................................................4

Cold Range............................................................................................................................... 5

Nirala Kheer..........................................................................................................................5

Nirala Firni............................................................................................................................ 5

Nirala Rusmalai.....................................................................................................................5

Nirala Rusgullay....................................................................................................................5

Nirala Kulfi............................................................................................................................ 5

Country Specific Advantage......................................................................................................6

Firm’s Specific Advantage of Nirala Sweets..............................................................................7

Global perspective for Pakistani Traditional sweets:................................................................8

Our destination countries.......................................................................................................10

BAHRAIN.................................................................................................................................10

Economy overview............................................................................................................. 10

Main data about Bahrain....................................................................................................11

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Bahrain as our potential market.........................................................................................12

Mode of entry into the Bahraini market.............................................................................14

Marketing plan for the Products of Nirala Sweets for Bahrain...............................................15

Purpose of the Marketing Plan...........................................................................................15

Contents of the marketing plan..........................................................................................15

Executive Summary:........................................................................................................16

Situation analysis:........................................................................................................... 16

Market Summary............................................................................................................ 16

Competitor Summary......................................................................................................17

Marketing process...........................................................................................................17

Understanding the customer needs and wants...........................................................17

Designing a customer driven marketing strategy (by Focus on target market)...........17

Value proposition: (“Made in Pakistan”).....................................................................17

Building profitable customer relationship (by giving them value)...............................17

Marketing Mix.................................................................................................................17

United States of America........................................................................................................19

Economy of USA................................................................................................................. 19

Main data about USA..........................................................................................................20

USA as our potential market:..............................................................................................21

Mode of entry into the US market......................................................................................22

Marketing plan for the Products of Nirala Sweets for USA:...................................................23

Purpose of the Marketing Plan...........................................................................................23

Contents of the marketing plan..........................................................................................24

Executive Summary.........................................................................................................24

Situation analysis............................................................................................................ 24

Market Summary............................................................................................................ 25

Competitor Summary......................................................................................................25

Marketing process:.........................................................................................................25

Understanding the customer needs and wants...........................................................25

Designing a customer driven marketing strategy (by Focus on target market)...........25

Value proposition: (“Made in Pakistan”).....................................................................25

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Building profitable customer relationship (by giving them value)...............................25

Marketing Mix.................................................................................................................26

SWOT analysis of the company..............................................................................................27

Strengths............................................................................................................................ 27

Weakness............................................................................................................................27

Opportunities......................................................................................................................27

Threats................................................................................................................................27

Forecasting.............................................................................................................................28

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INTRODUCTION

HistoryOver half a century ago, the foundation of Nirala was laid in Lahore, Pakistan, with the commitment to provide people with delectable quality delights. The great journey started when Taj Din migrated from Amritsar, India, to Lahore and started a small breakfast shop in the inner city of Lahore in 1948. The passion for quality, distinctiveness and hard work set by our founder is the spirit we seek as our guiding principle.

Vision Our vision is to make Nirala a global brand, a brand recognizable for its uniqueness and quality in ethnic food market all around the world. In this perspective we consider our self as an innovative and a pioneer company, continuously offering unique products and interesting service concepts that others haven’t even dreamt of.

Core ValuesThe core values of our organization which we consider the Spirit of Nirala have not changed over the past half century. Those values and traditions which have made the brand Nirala a market leader for the past 62 years are:

Continuous Improvement Innovation Integrity Team work and Social Responsibility

Our team Quality Assurance

Shop Operations

MIS

Value Added Services

Human Resource

Finance & Accounts

Global Marketing Nirala Sweets

Administration

Design

Production

Stores & Procurement

Companies

The business of Nirala Sweets, in just over half a century, has evolved into a Group of Companies, consisting of various business divisions. It is heartening to see that from a single, small mithai shop in old Lahore in 1948, the Company now owns 20 shops in 6 cities of Pakistan, besides 2 in the UAE. The Group consists of businesses like dairy processing and packaging, snacks, restaurants, software house and more recently, automobiles. The Nirala Group consists of ten companies operating in different market segments

Anmol CompanyAnmol Company holds the exclusive franchise rights in Pakistan for Nirala Sweets & food products. Anmol Company is responsible for manufacturing, distributing and selling Nirala Sweets, which is undoubtedly the leading brand in the Mithai market in Pakistan. There is a wide range of products that the company has to offer. The brand has been built to this level over a period stretching beyond half a century. At the moment the Company has 21 shops; 19 in 6 cities of Pakistan and 2 abroad, in the UAE.

N Design Nirala cares for nature and values art. The group contributes in designing elements by offering a wide range of designing services that include multimedia presentations, web sites, outdoor and press advertisements, modernistic décor for supermarkets and retail outlets and outputs for print media. These services are rendered to sister concerns and to other leading companies and multinationals operating in telecommunication, banking, oil and gas, and textile sectors etc.

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Global Marketing Nirala Sweets

Nirala Canada Ltd.The Company is being established to introduce Nirala Sweets and related products in the Canadian market. The core activity will include import of semi-finished products from Pakistan and to refine them at the semi kitchen established in Canada, before marketing the product at various stores. Semi kitchen will only be engaged in the refining of product or bringing them in marketable condition. Products will be marketed through a network of retail outlets around big business markets in Canada, like Toronto, Montreal, Ottawa, Vancouver and Calgary. The registered office of the company is located in Vancouver, British Columbia.

Nirala Dairy (Pvt) Ltd.An integrated milk & milk powder processing plant has been set up at Tandlianwala, near Faisalabad, under the name of Nirala Dairy (Private) Limited. Nirala Doodh, the UHT packaged milk of the Company was launched in June 2005 and is now the favourite brand in many households. This is due to the strict quality measures that the Company religiously adheres to. Nirala Desi Ghee (Butter Oil) was launched earlier and is leading the market in its category due to is superior quality and taste. Many more products in the dairy range are being developed and will be launched shortly.

Nirala (Pvt) Ltd.Nirala Private Limited is the custodian of the brand name Nirala. The brand is owned by this company and is a registered trade mark world over.

Nirala (UK) Ltd.For United Kingdom & European Union, Nirala UK Limited holds the exclusive franchise rights of the Nirala brand. Under the franchise, it can set up Nirala shops, manufacture, sell and market Nirala products in its domain. Although Nirala UK Limited is yet to open its first shop in the region, it is aspiring to capture the hearts of many sweets lovers in the region.

Taj Trading LLC

Formed in 1999, Taj Trading LLC, operates in UAE & Gulf region. The company deals in trading of various commodities as well as owns franchise rights for Nirala brand in the UAE region. To date, it has two branches, one in Dubai and one in Sharjah and now planning of venturing further into the Gulf region very soon.

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Global Marketing Nirala Sweets

MithaiIt all began in 1948 when the entrepreneurial Ustaad Taj Din migrated from Amritsar, India and started a breakfast joint in Mewa Mandi of Lahore. The uniqueness of the taste offered at the joint made it so popular that Taj Din soon decided to venture into Mithai as well, and opened a shop on Fleming Road in Lahore. The mithai tasted so different that he chose to call it Nirala … Today, over half a century after, the Nirala name has come a long way. Having won the trust and admiration of millions of customers across the nation, Nirala has also gone international with 2 shops in Dubai and Sharjah.

Nirala Sweets is now all set to launch its operations in North America and UK soon. Today, Taj Din's family has evolved the business into an ever growing empire. Inducting experienced professionals in the team, Nirala has grown from a small Mithai vendor to 20 outlets in the country and 2 in the UAE. Nirala Sweets proudly offers more than a hundred varieties of Mithai to satisfy any taste. Our belief in 'nothing but the best' ensures that every experience with Nirala Sweets is as 'sweet and tasty' as ever and that quality is never compromised. Nirala Sweets is not just a name. It is a tradition, a trust and an integral part of your joyful memories.

Regular Mithai An irresistibly tempting range of over 140 types of mithai. From “moti choor” to “lal jaman” and “burfi” to “baloo shahi” you can be sure of unmatched taste and unquestionable superiority. Regular, for us means carefully selected, quality ingredients cooked to perfection.

Special Mithai A very exclusive range of mithai not found anywhere, but at our Nirala shops. Filled with ingredients such as purest DesiGhee, high quality dry fruits and carefully selected 'mewas' that add richness, temptations and flavour to these exclusive treats, which will compel you to savor this mouthwatering experience.

Sugar-Free Mithai In today’s age where health consciousness is on the rise and more and more people are becoming particular about their health, diet foods have also grown in popularity. With this in mind, Nirala Sweets has introduced the Sugar Free range, so that you can enjoy your favourite choice of Nirala Mithai, without having to worry about your weight. So go ahead and visit your nearest Nirala Sweets shop today and experience the sugar-free

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world in your favourite sweets shop!

Cold RangeThere's nothing like a bit of cool in your life, and Nirala gives you all the right reasons to indulge in this amazing range of desserts.

Nirala KheerA sweet pudding made of milk and rice. It is a very popular dessert for any occasion specially, the festive ones.

Nirala FirniNirala Firni is a light pudding made of milk and finely chopped rice.

Nirala RusmalaiMouth watering cheese dumplings in an aromatic syrup of pistachio, cardamom and milk.

Nirala RusgullayTenderly soft cheese balls dripping with thick, sweet syrup.

Nirala KulfiHave fun with Nirala's ultimate kool kulfi mania. Nirala Kulfi is available in five exciting flavours i.e., Classic (the traditional recipe), Vanilla, Chocolate, Pineapple and Orange. Experience the fun and excitement in every bite of chilled Nirala Kulfi, available at all the Nirala Sweets outlets round the year. Nirala Kulfi is a frozen dessert similar to ice cream. It is prepared from purest dairy products like condensed milk and khoya. So why not treat your friends to Nirala Kulfi today!.

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Global Marketing Nirala Sweets

Country Specific AdvantageThe country specific advantage for us in a traditional sweets manufacturing business as a Pakistani foreign direct investor is mainly the expertise and strong background in cattle-farming, sugar manufacturing, sweets manufacturing and technical development in past few years in traditional cooking methods in the form of most suitable human resource. Pakistan is a country with a vast agricultural land being the main source of revenue for its majority of population. Similarly cattle-farming also had a centuries old historical background and has taken the shape of an ever-growing, highly profitable profession throughout the country. Similarly, as a nation with centuries-old culture, traditions, norms and values traditional sweet manufacturers are also increasing in number day by day with innovative sweets and dishes with new flavors and recipes.

All three professions and the relevant industries are providing employment to millions of people in Pakistan and even outside Pakistan. These people have vast experience in their particular fields. So the country specific advantage in brief is the human resource specialized in traditional sweets manufacturing, dairy-farming (production of milk, ghee, khoya, cheese etc.), and other relevant fields and professions.

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Global Marketing Nirala Sweets

Firm’s Specific Advantage of Nirala SweetsAccording to the analysis of this particular company the FSA of Nirala is its expertise in unique taste and variety of products. Nirala is an experienced brand in Pakistan regarding sweets and it is experienced since 1947.

Nirala is a well known, highly reputed traditional sweets manufacturer in Pakistan. Nirala is famous in our country for its particular taste and of high quality this is the reason it is very successful in UAE.

Nirala doesn’t only concentrates on its taste but they have built a proper setup like an organization, it has highly quality food technicians, a new technology and Nirala doesn’t rely on its already launched tastes but they keep on innovating new products with distinguished tastes.

To capture the large market and for customers convenience Nirala has created online facility for ordering, they are targeting corporate events, family events and provided you with Eid and Christmas gifts. Nirala is considered as giant in production and customer never complaints about late delivery.

Incase of hiring any new employee it is properly trained until he develops abilities to cope up with the upcoming challenges.

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Global Marketing Nirala Sweets

Global perspective for Pakistani Traditional sweets:Traditional sweets (known as mithai, meetha, boondi etc.) of the Indo-Pakistan Subcontinent are famous all around the world for their unique taste and highly energetic and pure ingredients including milk, khoya (densed milk in dough form), sugar, coconut and dry or roasted nuts. The main reason behind this popularity lies within the migration and settlement of Indian, Pakistani and Bangladeshi citizens throughout the world and especially in Europe, Saudi Arabia, Middle-East, USA and Canada, Australia and Scandinavia. Unskilled, skilled and highly skilled human resource from this blessed part of world used to move towards other parts of the world in search of healthy and wealthy lifestyle and temporary or permanent settlement since centuries. Especially after late eighteenth century uptill now thousands of people go to foreign countries every year for different purposes and the most common among them are family tours, employment, education, medical treatment, businesses and to meet their members of family living in those countries. Many people travel across their homelands and foreign countries at regular basis. Heavy migration has been witnessed to Canada and America, UK and Australia by Indian and Pakistani citizens at different times and in case of different events e.g. in 1800’s 10 lac farmers were taken only from the province of Punjab to develop farms on the barren lands of Canada, after independence in 1947 Kashmiri’s moved to England in thousands of number, similarly after 1984 Sikh massacre in India Sikhs mostly from Punjab and in small numbers from other parts of India migrated and permanently settled in Europe, Canada and USA.

In this period of approximately two and a half centuries people migrated to foreign countries on Farmer Visas, Work Permits, Student Visas, Family Migration Visas, Political Asylums, fiancé Visas, and various offerings to highly skilled doctors, engineers, lawyers, businessmen, and experts or highly qualified professionals from different fields of life.

Today we can easily witness such areas in European countries, USA and Canada etc. where Indian, Pakistani and Bangladeshis are living in small majorities and mostly in mixed settlements and colonies attached to mostly every art of earning a living.

In the case of migration of sub-continent people in Middle-East and Arab countries we can just go a little back in the history to see when does it started. According to our learning, after the second world war Arab countries started their journey towards development and modernization. In late 1960’s and 70’s huge projects of infrastructure development, oil drilling and refining were started and other linked industries started to work. Today we see industrialization and modernization at its peak in most of the Arab countries mainly due to Natural Resources. This rapid industrialization and development opened the doors of career making rather life making opportunities for all sorts of human resource around the world and especially to the unskilled, skilled and highly skilled people of sub-continent so people with or without their families moved in millions of number to UAE, Qatar, Oman, Saudi Arabia, Bahrain and Iraq. In these 3-4 decades generations of Indian and Pakistani people

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are grown in these countries and this is the reason that according to the census of Pakistan conducted in 1998, approximately 10 percent of the total population of Pakistan is temporarily or permanently living outside the country mainly due to employment and education.

The people of sub-continent although living in foreign countries for decades have great love and respect for their people and culture. Even they have a separate cultural identity at any place or country they live around the world. This identity lies not only inside them but in their costumes, foods, rituals and norms of hospitality and lavish spending. Most of the Indian, Pakistani and Bangali’s live in their cultural and ethnic ways of living and enjoy their ethnic and traditional foods daily, at weekends and particularly at their religious, social, family and corporate events.

Among the list of traditional foods, sweets are of a particular and special importance. But this is a very common observation that they are very difficult to be cooked and processed at home. Even in Pakistan people go to sweet houses and shops to buy various kinds of them.

Now the people of Sub-Continent living in foreign countries want to enjoy their traditional sweets at their door steps but processed and prepared in hygienic conditions according to the high standards of their choice. Their want is a Pakistani/Indian sweet manufacturer offering their traditional sweets with a reliable and reputed brand image, international standard, pure but refined ingredients and easily approachable.

In a comparison, Indian sweet houses are much more in number than Pakistani sweet houses in USA, Canada, UK, UAE and other countries where their target market is available. So, patriotic and religious Pakistani’s often find it quite difficult to enjoy freshly-cooked Pakistani traditional sweets prepared by their Muslim brothers and from which they can smell the sweetness of their motherland. Sometimes it becomes impossible and they have to compromise on their patriotic feelings and religious devotion. At such times they miss Pakistani fresh traditional sweets because these can’t be kept for many days or preserved in case of import.

The perspective for Pakistani traditional sweets is very broad in all countries where Pakistanis are in a good number including USA and Bahrain and several other countries already mentioned above.

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Our destination countriesBAHRAINBahrain officially Kingdom of, is a small island country in the Persian Gulf ruled by the Al Khalifa royal family. While Bahrain is an archipelago of thirty-three islands, the largest (Bahrain Island) is 55 km (34 mi) long by 18 km (11 mi) wide. Saudi Arabia lies to the west and is connected to Bahrain via the King Fahd Causeway, which was officially opened on 25 November 1986. Qatar is to the southeast across the Gulf of Bahrain.

The planned Qatar Bahrain Causeway will link Bahrain and Qatar as the longest fixed link in the world. Bahrain is also known for its oil and pearls. The country is also the home of many popular structures such as the Bahrain World Trade Center and the Bahrain Financial Harbour, and also the home of many skyscrapers, including the proposed 1,022 m (3,353 ft) high super tall Murjan Tower.

Economy overviewIn Bahrain, petroleum production and processing account for about 60% of export receipts, 60% of government revenues, and 30% of GDP. Economic conditions have fluctuated with the changing fortunes of oil since 1985, for example, during and following the Gulf War of 1990-91. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Persian Gulf. A large share of exports consists of petroleum products made from imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of both oil and underground water resources are major long-term economic problems.

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Global Marketing Nirala Sweets

Main data about Bahrain

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Global Marketing Nirala Sweets

Bahrain as our potential marketBahrain is among one of the richest countries of the world, population comprises of 738,004, and Bahrain has the per capita income of $37,200. Economy of the country is very stable and there is just 15% unemployment rate that is decreasing continuously due to the large investment by the foreign companies. There are lots of reasons that gives the answers regarding choosing this country, such as Bahrain is becoming a business hub like U.A.E in Middle East, the Government is giving more leverages to the investors to invest the other reasons are as follows

No Tax for companies or individuals Custom duties are low Corporate friendly policies Investor friendly legal system Simplified Business procedures Upcoming Banking and financial hub Tremendous scope for growth and open market for opportunities People are friendly and culture is conducive for business growth Good infrastructure and government has also started initiatives to make it better There is lot of freedom in Bahrain Major port hub in the Middle East Easy access to all Middle east markets There is good law and order in the land Flourishing entertainment and tourism industry Good social life and variety of food Introducing Corporate governance

As I have stayed in Bahrain for a long time, people of Bahrain don’t like chilli products they prefer the sweet things and they have number of sweet dishes that represents there culture. There are thousands of immigrants from Pakistan, India and Bangladesh that will provide us edge to create a reputed brand and huge profit in Bahrain. And these people are of culturally same origin. The population Pakistanis living in Bahrain are 60,000 and Indians are 150000 and they are living there for decades and Bahrainis are well aware of sub-continent culture through these people. The competition in Bahrain in terms of traditional sweets is not tough because there are no Pakistani or Indian sweet giants sitting in Bahrain, just few small shops with limited variety is available there. Initially our target area in Bahrain would be the capital Manama, the place where the large South Asian origin people live.

The electricity charges are very due to the petroleum resources in the country, there are no taxes for investing in Bahrain that would cut our huge expense and make more opportunities to earn huge profit.

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The Government has revised there FDI policies which results in the boom of FDI the following graph depicts the true face of FDI

FDI since 2005 has increased at tremendous speed.

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Mode of entry into the Bahraini marketAfter analyzing all the factors and identifying the potential in the Bahraini market Nirala would be doing FDI in Bahrain, opening its franchise in the capital. Bahrain economy is considered as developing, per capita income is good and the most important point is that the individuals or an organization who invests in Bahrain don’t have to pay the taxes.

The prices of the commodities that are used in making the sweets are very cheap because the economy of Bahrain is very stable and inflation rate is very low. Nirala will be taking its technology and skilled human resources and will hire human resource from the destination country to manufacture its products.

Nirala will not be involving any third party in its business in terms of sales, it will be doing the sales itself so the profit should not be shared. Nirala would be operating separately in the market and its core objective would be to meet the demands, taking the orders directly and providing the customers with product.

As milk is considered as the core product for manufacturing it would deal with the Nestle that has well reputed name in the global market to get the milk on time. Desi ghee would be imported from Pakistan through Nirala’s. For importing from Pakistan a Pakistani shipping country would be hired.

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Marketing plan for the Products of Nirala Sweets for Bahrain

Purpose of the Marketing PlanThe purpose of any marketing plan is to provide direction and focus for the brand, products and company. With a detail plan, any business will be better prepared to launch a new product or build sales for existing products.

Nirala have based all of its marketing strategies and plans on the research and analysis of Bahraini market. This research included the current trends, culture, economic status, age, income, climate, Bahraini food industry and its influence on consumer behavior and last but not the least the perception of Bahraini consumers about the sweets and other products offered by Nirala sweets.

As Nirala is already working globally like UAE where it is doing FDI and some other countries where Nirala is exporting semi cooked products such as UK, Canada etc

This diversified experience of foreign markets gave Nirala some valuable insight for devising its future strategies for the target market in Bahrain and it will help in achieving its strategic objects in future.

So focus of Bahrain is to adapt all marketing campaigns according the market trends and customer preferences. “Because they believe that customer is the partner”.

After the complete analysis of these basic and important relevant factors, Nirala came up with its Marketing plan for its high quality products.

Contents of the marketing plan1. Executive Summary2. Situation analysis3. Market Summary4. Competitors5. Marketing process6. Marketing mix7. SWOT analysis8. Forecasting

The marketing plan shows how the company will penetrate into the market and maintain profitable customer relationship. In the process, however, it also shapes a number of internal and external relationships.

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Executive Summary:The very first step in formulating the marketing plan for Nirala is to give Executive summary.

Executive summary is for the senior managers who must review and approve the marketing plan. Nirala is planning to launch its sweets and dairy related products in Bahraini market.

Nirala can compete in that market because of the fact that its products are high quality, elegant, and up to the standards of its customers around the globe. The purpose of targeting Bahraini market was to take advantage of the developing market and to expand the business function of Nirala to the other end of the world, as well as to enhance the brand name of Nirala.

Situation analysis:Situation analysis focuses on the market definition and the current capabilities of the company to serve them. It also tells that why it was imperative for the company to move to the destination country and expand its business and sales function.

After Bahraini borders were opened, foreign investors quickly started to fill the market with their products as you can see from the 2006 the FDI is at its peak and Bahrain is becoming the next business hub of the Middle East.

The food sector is booming in Bahrain and Bahraini consumers are becoming more health conscious and desperately in need to taste new food products etc. The main reason behind Nirala’s ambition to reach Bahraini market is to serve the market needs. In Bahrain demand is from both the natives and foreigners’ large numbers of Asians are living there.

And this situation compelled Nirala to come up with a strong proposition about the uniqueness and elegance of Pakistani made sweets and venture into the Bahraini market to capture the market and become the market leader.

Market SummaryMarket summary include size, needs, growth and trends of the market. When it comes to Bahraini market, then one thing is evident that Bahraini market is developing with the passage of time. Positive changes in Bahraini economics, stabilization of the domestic market in general and increased living standards in particular, have enabled Bahrainis to spend more money on food items.

Bahraini market of apparel is considered as one of the most attractive today, showing a dynamics of 7% of annual growth and its percentage is increasing each year because the Government has relaxed FDI policies that are creating a fierce competition in the market every company has to lower its product price to match the competitor. But Nirala have planned to tackle this issue with providing high quality products with the label “made in Pakistan” and to charge the customer a reasonable price for it. The consumers in Bahrain

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are distributed with age 0-14 years: 25.9% and 15-64 years: 70.1% who are our target market.

Competitor SummaryAs South Asians are living in Bahrain for decades so already there are some small sweet shops such as Indians, Bangladeshis and Pakistanis. But there investment is not too large and have limited number of variety. The competition in traditional sweets is not too fierce.

Some of the competitors that are operating there are Pakistan sweet house, Bombay sweet corner etc, but their marketing campaigns are at low stages. Our years of experience in Pakistan and skilled human resource can compete the existing competitors in no time.

Marketing processThe marketing process of Nirala product line will include the following:

Understanding the customer needs and wants

Designing a customer driven marketing strategy (by Focus on target market)

Value proposition: (“Made in Pakistan”)

Building profitable customer relationship (by giving them value) Capturing value from customers: (through Feedback)

Marketing Mix

Marketing mix is with the sole object of how Nirala is going to serve the customers profitably it and include the follow:

ProductNirala sweets make huge variety of sweets, cold range, dairy products that are of high quality. Nirala sweets include product line of high quality, unique. It produces Regular Mithai that has an irresistibly tempting range of over 140 types of mithai. From “moti choor” to “lal jaman” and “burfi” to “baloo shahi”. Special Mthai that filled with ingredients such as purest DesiGhee, high quality dry fruits and carefully selected 'mewas' that add richness and Sugar Free Mithai. Cold range includes Nirala Kheer, Nirala Firni, Nirala Rusmalai, Nirala Kulfi, Nirala Rusgullay.

PricePricing is a very challenging issue for the Nirala in Bahraini defragmented market. Because of the reason that most of the sweet brands that are offering their products are focusing their strategies on the low price.

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The competitors that are operating there are offering sweets at low price but not of high quality products. Initially we will keep the prices according to our competitors but with passage of time when the company will be successful in creating the goodwill and cater the market share, the company will increase the prices.

PlaceAll the products will be sold to customers from the selected outlets of Nirala in the city centres. Initially Nirala is focusing this strategy in the one urban cities of Bahrain that is Manama.With the advancement of business function Nirala has plans for expanding it to the other cities like Riffah and Muharraq.

PromotionAs the Nirala brand name is widely trusted and respected in Pakistani market the Nirala will adopt the Pull strategy to promote its products and attract the attention of the masses by highlighting the point of difference of Nirala products and brand name. For this purpose Nirala will use every kind of medium available to propagate its brand name and enhance its image in the minds of consumers.

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United States of AmericaThe United States of America (also referred to as the United States, the U.S., the USA, or America) is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent, with Canada to the east and Russia to the west across the Bering Strait. The state of Hawaii is an archipelago in the mid-Pacific. The country also possesses several territories in the Caribbean and Pacific.

At 3.79 million square miles (9.83 million km2) and with over 310 million people, the United States is the third or fourth largest country by total area, and the third largest both by land area and population. It is one of the world's most ethnically diverse and multicultural nations, the product of large-scale immigration from many countries. The U.S. economy is the world's largest national economy, with an estimated 2009 GDP of $14.3 trillion (a quarter of nominal global GDP and a fifth of global GDP at purchasing power parity).

Economy of USAThe economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be $14.3 trillion in 2009, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. economy also maintains a very high level of output per capita. In 2009, it was estimated to have a per capita GDP (PPP) of $46,381, the 6th highest in the world.

Historically, the U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. It has been the world's largest national economy since 1944 and remains the world's largest manufacturer, representing 19% of the world's manufacturing output. In 2009, consumer spending, coupled with government health care spending constituted 70% of the American economy. About 30% of the entire world's millionaire population reside in the United States (in 2009). Furthermore, 40% of the world's billionaires are American. The US is also home to the world's largest stock exchange, the New York Stock Exchange. It also boasts the world's largest gold reserves and the world's largest gold depository, the New York Federal Reserve Bank. The United States is also home to 139 of the world's 500 largest companies, which is almost twice that of any other country. A large contributor to the country's success has also been a very strong and stable currency. The US dollar holds about 60% of world reserves, as compared to its top competitor, the euro, which controls about 24%.

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Global Marketing Nirala Sweets

Main data about USA

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Global Marketing Nirala Sweets

USA as our potential market:USA is among the highly developed and richest countries of the world, it comprises a population of 310,232,863 with a per capita income of $46,442. The unemployment rate is 9.8% that is mainly due to the recession. The reason for choosing this country is the ranked 5th in doing business, it is highly developed and mode of entry is easy in USA.

The US has a diverse society and comprises of millions of South Asians. The Americans foods are very diverse in nature, chocolates in America generates a huge revenue each year that shows they like sweet taste products this is the logic full reason that our product would be successful there. In initial stage we will invest in New York where the state corporate income tax rate is 7.1%. New York is a highly populated place where 315,000 people from the Indian subcontinent lives, which includes the countries of India (236,117), Pakistan (39,002), Bangladesh (34,332), and Sri Lanka (5,010). South Asians constitute 3.8% of New York City's population. Indian and Pakistani foods are very famous in America that has huge potential and are generating huge revenues.

Although the sweet giants are sitting in the rest of the states but the New York data doesn’t shows the well known name of traditional sweet shop, it doesn’t mean that there is not competition there but few shops with limited variety, that can provide edge to Nirala for flourishing. As it is considered as one of the giant in Pakistani sweets.

The dairy products that are used in making the sweets are very cheap because agricultural products are not much expensive as the government gives subsidies to farmers.

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Global Marketing Nirala Sweets

Mode of entry into the US marketAfter analyzing all the factors and identifying the potential in the US market Nirala would be doing FDI in US, opening its franchise in the New York. US economy is considered as developed, per capita income is good and the most important point is that the individuals or an organization who invests in US gets uncountable facilities and the investor has to pay 7% tax.

The prices of the commodities that are used in making the sweets are very cheap because the economy of US is very stable and inflation rate is -0.3 which means commodities pricing are lowering. Nirala will be taking its technology and skilled human resources and will hire human resource from the destination country to manufacture its products.

Nirala will not be involving any third party in its business in terms of sales, it will be doing the sales itself so the profit should not be shared. Nirala would be operating separately in the market and its core objective would be to meet the demands, taking the orders directly and providing the customers with product.

As milk is considered as the core product for manufacturing it would deal with the Nestle that has well reputed name in the global market to get the milk on time. As the agriculture in US is considered as strong part of its economy and the agricultural goods are very cheap because the Government gives the farmers heavy subsidies. The goods that are used in making the sweets would be purchased from the local suppliers which in result will minimize our manufacturing cost.

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Global Marketing Nirala Sweets

Marketing plan for the Products of Nirala Sweets for USA:

Purpose of the Marketing PlanThe purpose of any marketing plan is to provide direction and focus for the brand, products and company. With a detail plan, any business will be better prepared to launch a new product or build sales for existing products.

Nirala have based all of its marketing strategies and plans on the research and analysis of US market. This research included the current trends, culture, economic status, age, income, climate, US food industry and its influence on consumer behavior and last but not the least the perception of US consumers about the sweets and other products offered by Nirala sweets.

As Nirala is already working globally like UAE where it is doing FDI and some other countries where Nirala is exporting semi cooked products such as UK, Canada etc

This diversified experience of foreign markets gave Nirala some valuable insight for devising its future strategies for the target market in US and it will help in achieving its strategic objects in future.

So focus of Nirala is to adapt all marketing campaigns according the market trends and customer preferences. “Because they believe that customer is the partner”.

After the complete analysis of these basic and important relevant factors, Nirala came up with its Marketing plan for its high quality products.

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Global Marketing Nirala Sweets

Contents of the marketing plan1. Executive Summary2. Situation analysis3. Market Summary4. Competitors5. Marketing process6. Marketing mix7. SWOT analysis8. Forecasting

The marketing plan shows how the company will penetrate into the market and maintain profitable customer relationship. In the process, however, it also shapes a number of internal and external relationships.

Executive SummaryThe very first step in formulating the marketing plan for Nirala is to give Executive summary.

Executive summary is for the senior managers who must review and approve the marketing plan. Nirala is planning to launch its sweets and dairy related products in US market.

Nirala can compete in that market because of the fact that its products are high quality, unique, and up to the standards of its customers around the globe. The purpose of targeting US market was to take advantage of the developed market and to expand the business function of Nirala to the other end of the world, as well as to enhance the brand name of Nirala.

Situation analysisSituation analysis focuses on the market definition and the current capabilities of the company to serve them. It also tells that why it was imperative for the company to move to the destination country and expand its business and sales function.

US is among the highly developed nations and its borders for investment are open for the investors, lots of lots of Indians and Pakistani based food companies are operating there.

The food sector is booming in US and US consumers are more health conscious and desperately in need to taste new food products etc. The main reason behind Nirala’s ambition to reach US market is to serve the consumer needs that include Americans as well as foreigners. In US demand is from both the Americans and foreigners’ large numbers of South Asians are living there. Alone in New York the population approximates 315,000 from the Indian subcontinent.

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Global Marketing Nirala Sweets

And this situation compelled Nirala to come up with a strong proposition about the uniqueness and elegance of Pakistani made sweets and venture into the US market to capture the market and become the market leader.

Market SummaryMarket summary include size, needs, growth and trends of the market. When it comes to US market, then one thing is evident that US food market is highly developed. The US society is the heterogeneous society where people form all origins live from decades. The per capita income is very high. Although the economic recession affected the American economy at a large stage but with time its economy is moving towards recovery.

The GDP of America is very good that is increasing every year by 3%. The inflation rate in America is -0.3% that means the economy is becoming stable which will result in the strong purchasing power. Age structure is like 0-14 years: 20.2% and 15-64 years: 67%, this shows that our product will have huge potential in the American markets.

As we are launching our business in NewYork we can face the fierce competition regarding traditional sweets from the Indian and Pakistani sweet shops that are already working there.

Competitor SummaryAs South Asians are living in US for decades so already there are some small and large sweet shops such as Indians, Bangladeshis and Pakistanis. The competition in traditional sweets is fierce in New York.

Some of the competitors that are operating there are Rajbhog Sweets, Sukhadia's Sweets , Maharaja Sweets & Snacks, Shaheen Sweets & Cuisine. As Nirala has years of experinnce in Pakistan and is well reputed here this thing will provide us because our Pakistanis living America can result in our high sales due to good word of mouth.

Our years of experience in Pakistan and skilled human resource can compete the existing competitors in no time.

Marketing process:The marketing process of Nirala product line will include the following:

Understanding the customer needs and wants

Designing a customer driven marketing strategy (by Focus on target market)

Value proposition: (“Made in Pakistan”)

Building profitable customer relationship (by giving them value) Capturing value from customers: (through Feedback)

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Global Marketing Nirala Sweets

Marketing MixMarketing mix is with the sole object of how Nirala is going to serve the customers profitably it and include the follow:

ProductNirala sweets make huge variety of sweets, cold range, dairy products that are of high quality. Nirala sweets include product line of high quality, unique. It produces Regular Mithai that has an irresistibly tempting range of over 140 types of mithai. From “moti choor” to “lal jaman” and “burfi” to “baloo shahi”. Special Mthai that filled with ingredients such as purest DesiGhee, high quality dry fruits and carefully selected 'mewas' that add richness and Sugar Free Mithai. Cold range includes Nirala Kheer, Nirala Firni, Nirala Rusmalai, Nirala Kulfi, Nirala Rusgullay.

PricePricing is a very challenging issue for the Nirala in US defragmented market. Because of the reason that most of the sweet brands that are offering their products are focusing their strategies on the low price.

To capture the sweets market of the New York, Nirala has to lower its prices by maintaining its quality then its competitors. This strategy will be helpful in switching the customers to their brand. After the passage of time when the company will be successful in creating the goodwill and cater the market share, the company will increase the prices.

PlaceAll the products will be sold to customers from the selected outlets of Nirala in the city centres. Initially Nirala is focusing this strategy in the one urban state of US that is New York. With the advancement of business function Nirala has plans for expanding it to the other states like California.

Promotion As the Nirala brand name is widely trusted and respected in Pakistani market the Nirala will adopt the Pull strategy to promote its products and attract the attention of the masses by highlighting the point of difference of Nirala products and brand name. For this purpose Nirala will use every kind of medium available to propagate its brand name and enhance its image in the minds of consumers.

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Global Marketing Nirala Sweets

SWOT analysis of the company

Strengths Nirala has an innovative technology Wide range to variety with different and unique tastes Considered as a sweet giant in Pakistan Nirala has proper organizational setup with research facilities Skilled sales staff Skilled technical staff

Weakness Identifying the eligible human resource in destination countries Huge investment required due to depreciation in PKR against USD and BHD Currency conversion can effect the marketing campaign budget Location can have negative effect on sales

Opportunities Opportunity to build brand image better. Little number of competitors with limited variety Huge market to capture People have good purchasing power Ease for doing FDI in the country

Threats Entrance of new competitors Government might increase the tax rate Cultural clash can decrease the sales

ForecastingThere were different methods available to the Nirala for forecasting market share and profitability. We choose judgmental method to forecast first year profitability of Nirala business.

In judgmental method there are number of techniques

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Global Marketing Nirala Sweets

Jury technique Expert pooling Delphi technique

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