CHAPTER-1

1.1 INTRODUCTION
Successful launching of a new product is always a challenge for
the marketing team. It a lot of working and efforts much long
prior actual launching. The marketing executive has to brain
storm alongwith his or her team, hold numerous presentations
and meetings to chalk down strategy. Subsequently, the well
thought out strategy is put into practical implementation.
Launching of a new product is the 2 nd most difficult task after
launching new company.

National Foods launched a new product few years ago with the
name Rivaaj Cooking Paste. Though, National Foods being a very
successful brand name in the field of spices was very confident of
success of its new product. It took all precautions and measures
and spent huge amount on advertisement as advised by the
marketing people. However, the product badly failed in the
market and could not earn profit and name.

National Foods has successfully established itself as multi-

national foods company with an independent subsidiary, National
Foods DMCC, in 2013, catering to the middle esteem market in
Dubai. This structure was further expanded with two more
subsidiaries in Canada, (National Epicure Limited) and United
Kingdom, (National Foods Pakistan UK Limited) catering to the
North American and European markets.

1.2 HISTORY OF NATIONAL FOODS

National Foods is a well-known name in market. It was founded in
1970 and started out as a Spice company. Three decades later it

1
diversified into a versatile food company with over 150 products
and above 100 SKUs (Stock Keeping Unit) for the domestic
market and over 100 different products for the international
markets. The evolution of National as a brand name itself is an
interesting story. The brand design was finalized to encompass
loyalty and to convey positioning of the brand. The rainbow is a
symbol of purity which also emphasizes quality. For the first
decade, the Company focused only on purity and quality. Mass
marketing methods were used to promote the brand. Profitable
selling and large volume achieved helped in transforming the
Company to a food company. While the brand position was
maintained as the leader, position as a leader became segmental
also.

In the following years, the need to reposition the brand was

realized. NF wanted to reposition the brand as a food brand
rather than a spice brand. At the same time NF also concentrated
on strategic and segmental marketing as we had already attained
large product mix. Mass marketing was replaced by segmental
marketing but strategic focus was maintained. Re-imaging the
Company became necessary for re-positioning of the brand.
Therefore, the new brand design and packaging was introduced.

As NFs' wish to take the brand beyond Pakistani market, the need
was felt to promote the brand as a concept rather than the
Company philosophy. The new brand was launched for the
mainstream multiples segment. However, the new brand was built
upon old guiding ethos. Now the brand is marketed as a food
experience. However, realizing the strength of product itself we
have also invested heavily in technology and packaging.

Competent human resources from within the company have

fuelled tremendous growth by excelling in functional

2
management. Even after three decades the company's focal
point still remains on Customer's needs through Product
development in line with the changing market trends. In this
innovative age of ever changing lifestyles, fuelled by the rampant
development of technology; consumers have been compelled
to change their eating habits. National Foods responds to this
challenge of developing innovative food products based on
convenience and fast preparation in line with modern lifestyles
and yet retains traditional values through its impressive collection
of food products.[1]

The brand delivers its ultimate promise by consistently

delivering value to its consumers.

National Foods enriches family relationships by bringing people

together for family traditions, feasts, and seasonal holidays and
of course - everyday life. We bring value to all our customers by
enriching their experience of using our products in ways that help
them become the center of attraction for their family that wins
praise every time.

White is the color of PURITY:

Purity is our first value. Purity of thought and of action. Purity is
an uncompromising standard. Purity is a way of life.

The color red in our logo stands for TRUST:

Trust placed in us by our customers, our trade partners, our
shareholders and our employees. A Trust that National Foods
Limited has upheld for the past 38 years.

3
 The color Orange in our logo represents our rich HERITAGE:
A proud heritage of striving for excellence handed down by our
founding generation to the present generation. A belief in our
Heritage is the strong foundation on which our business continues
to grow.

Purple, a color of life that for us means CONVENIENCE for

our customers:
All our products aim to enhance convenience for our customers
and our trade partners. Convenience is a NFL value.

Yellow signifies brightness, and for us brightness means

INNOVATION:
Innovation is a key NFL Value. Innovation drives our ability to
remain contemporary in response to our consumers needs.

1.3 COMPANY MISSION

1.3.1 To deliver consistent quality to our customers

using pure ingredients, authentic recipes and the best
available technology.

1.3.2 Dedicated to continuous improvement

through active alliances with international companies to
expand technological and product horizons.

1.3.3 To maintain close and direct contact with our

customers through consumer insights and dedicated
service.

1.3.4 To provide external and internal customer service

by excelling in functional management.

4
 1.3.5 To deliver annually a fair return to our valued
investors and shareholders in line with industry and
economy.[2]

1.4 VISION

1.4.1 To be an innovative, marketing and research

oriented company.

1.4.2 To be a leader and take advantage of our

leadership position in all categories of products.

1.4.3 To develop products in line with market

potential through the means of indigenous technology using
R&D.

1.4.4 Market our products globally.[2]

1.5 VISION 2020

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. [2]

1.6 COMPANY STRATEGIES

National Foods used following strategies for launching of Rivaaj

Pastes:

1.6.1 Raise consumer brand awareness,

excitement and involvement. National Foods adopted the
strategy of consumers awareness, excitement and
involvement to make its product successful

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 1.6.2 Promote special offers and incentives.
National Foods gave special offers to customers and
incentives to the retailers so that the product could hold feet
in the market and increase sale

1.6.3 Stimulate Product Sampling and Trials.

The company also adopted this strategy to study customer
need and response.

1.6.4 Demonstrate Product/ Service Benefits.

The company held numerous demonstrations for promotion
of its new product.

1.6.5 Generate in Store or Online Site Traffic.

National Foods generated in store traffic

1.6.6 Stimulate media interest and industry buzz.

Generally media is interested in business, no matter who is
paying them. In order to stimulate media interest, National
Foods purchased good amount of air time and space in print
media. [2]

1.7 CORE VALUES

1.7.1 Passion. We act with intense positive energy and
are not afraid to take risks. We challenge ourselves
continuously, were good at what we do, and we take pride
in who we are.

1.7.2 People-Centric. We put our people first.

We treat them with respect actively contribute towards their
development.

1.7.3 Customer Focus. We see the world through the

eyes of our customers. We do everything possible to make
them happy.

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 1.7.4 Leadership. We are part of the solution, never
the problem. We act like owners and have a positive
influence on others.

1.7.5 Teamwork. Our roles are defined, not our

responsibilities. We believe in going the extra mile to
accomplish our goals. We coach and support each other to
ensure everyone wins. We have a WE versus I mindset.

1.7.6 Ethics. We dont run our business at the cost of

human or ethical values.

1.7.7 Excellence in Execution. We say. We do. We

deliver. We talk with our actions. We strive for nothing but
the best. Execution is the key to winning!

1.7.8 Accountability. We see. We act. We take full

responsibility of our actions and results. We dont blame
others for our mistakes; we analyze them and correct them.
[3]

1.8 GOALS AND OBJECTIVES

1.8.1 Key to Success. Differentiation means to differ
the products from those of sellers' competition by the seller or
manufacturer by adding more values to their product or
service. We differentiate our products on the base of
QUALITY and IMAGE.

1.8.2 Marketing Objectives. Our marketing objectives

after making the plan for Rivaaj paste are:
Continuously maintained high awareness all-round

Concentrated on advertising and distribution

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 Focused on increasing sales , and reduce our
expenses

Constantly stayed aware of our position and that of

competitors within the market.

1.8.3 Financial Objectives. The companys

objectives when managing capital are to safeguard the
companys ability to continue as a going concern in order to
provide returns for shareholders and benefit for other
stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
1.8.3.1 Financials.The financial overview of Rivaaj
paste related to marketing activities in which included sales
forecast, expense forecast etc is given in ensuing
paragraphs.

1.8.3.2 Break Even Analysis. The break-even indicates

that $70,000 will be required per quarterly revenue to reach
the break-even point. [3]

Break even analysis

monthly units break even --

Monthly sales break even 5348

1.9 PRODUCT OFFERING

As National foods is a known name in market, it has already
different brands in market like Jams, ketchup, Achar, Kheer mix,
Custard powder, etc. Now National foods is introducing a new
brand named Rivaaj.

National foods is introducing the six different types of Rivaaj

pastes:

8
 Rivaaj pastes.
Biryani Paste.
Bombay Biryani Paste.
Karahi Paste.
Quorma Paste.
Shahi Curry Paste.
Chicken Jalfrezi Paste.

1.10 SWOT ANALYSIS

SWOT analysis plays an important role to evaluate the

performance of any organization. This is most commonly
followed set pattern to analyze the strength, weakness,
opportunities and threats. For any company strength and
weakness are internal elements and threats and opportunities
always come from outside the organization. Now we perform a
detailed SWOT analysis considering the National foods .
1.10.1 Strengths.

1.10.1.1 Broad product line. National foods has

very broad product line that includes different
types of Masala powders, Kheer mix, Ketchup,
Custard powder, Pastes, Achar and many more..

1.10.1.2 Broad Market Coverage. National foods

occupies 80% market share in powder mix market and
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one very obvious reason for that is strong and very
broad market coverage. According to Sales and
purchase Manager National foods, they have excellent
market coverage all over Pakistan and citizens of each
city have easy access to sales and display centers.

1.10.1.3 Manufacturing Competence. National

foods has engineering and technical staff of the highest
caliber that is capable of manufacturing such
products that differentiates National foods
products from its competitors. National foods posses
specific manufacturing competence for example use of
imported machinery and a high quality ingredients in
manufacturing of powder mix that maintain the quality
of product.

1.10.1.4 Good Marketing Skills. National foods'

efficient marketing team in Pakistan has over the years
played a crucial role in developing public awareness.
National foods has its own in-house advertising agency
for promoting all National foods' products.

1.10.1.5 Enhanced Research and Development.

National foods emphasizes on Research and
Development department to a great deal. Chief
executive of National foods has hired a team of R & D
himself and he makes sure those ongoing
improvements in the existing National foods products
range is a continuous activity. Efficient R and D
department is considered as a vital strength of
company.

1.10.1.6 Brand Name Reputation. National foods

is among those few brand names that have earned a lot
on the basis of its brand reputation. However, the fact is
that company has seen tiring 34 years of hard work to
achieve this brand image. Brand name is a source of

10
 vital strength for the company and is known all over the
market place.

1.10.1.7 Appropriate Organizational Structure.

Organizational hierarchy at National foods is very
functional and appropriate. Company top management
consists of the Chief executive and Managing director.
Then there are middle managers of concerned
departments like Marketing, Production, R&D and
Finance. Company believes strongly on good
relationship with its human resource.

1.10.1.8 Good finance Management. Finance

department of National foods is efficiently working to
allocate resources to each of its business portfolio.
Good finance management is yet strength of company
that is helping company out in assessing the exact
financial situation.

1.10.2 Weakness. Currently National foods is operating

with its full capabilities and Companys sales manager
does not think that there is any internal weakness in the
organization. Because Company has a good repute in market
and working with full concentration to improve its image in
the minds of people.

1.10.2.1 Poor Internal control. NFL has poor

internal control and monitoring when performing audit.

1.10.2.2 Advertising Campaign. NFL does not have

a strong advertising campaign like Shans.

1.10.3 Opportunities.

1.10.3.1 Expanding into Foreign Markets. The

biggest opportunity for National foods currently is
exploiting new market segments. After achieving good
market coverage all over Pakistan, National foods is
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 now trying to expand its business in Middle East and
Central Asian states.

1.10.3.2 Expansion of Core Business. National

foods started as powder mix producers but soon after
gaining rapid market shares in powder mix, Company
considered expansion of core business as a major
opportunity. Today Company has wide range of
products that it has achieved by expanding the core
business.

1.10.3.3 Entering Related Business. Entering

those new businesses that are related to current
business is a high potential opportunity. For
example company has entered the related
businesses like Kheer mix, Ketchup, Custard powder,
Pastes, Achar and many other things.

1.10.4 Threats.

1.10.4.1 New Entrants. The biggest threat

for the Company has been the entry of new
competitors in the market, which has made National
foods management think that they will have to adjust
the pricing or to provide some handsome incentives
to customers in competition with other brands in
market because Company does not want to lose its
market share.

1.10.4.2 No Barriers on Entry . Government

has not fixed any hard rules upon the entrants in this
industry. Any group of companies that is financially
strong can enter this industry without facing any
strict barriers. This is another threat for National foods
that more and more entrants are coming in this
industry and the profit margin shrinking gradually.

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 1.10.4.3 New Form of Industry Competition.
In Pakistan, some other companies like Star has
started competing National foods with its Custard
powder and Achar. It has formed a new form of industry
competition. Star is producing its products at a cheaper
price and price war is already on.

1.10.4.4 Government Legislation. The

production department of National foods uses
special machinery that has to be imported from
abroad. Government has fixed a quota system that
company cannot import it more than a specific ratio.
This quota system is creating a threat for company and
soon company needs to find an alternative.

CHAPTER - 2
ANALYZING THE ENVIRONMENT
2.1 EXTERNAL ENVIRONMENTS
PESTLE (POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL, LEGAL
AND ENVIRONMENTAL) is best suited acronym for external
environment.

13
2.1.1 Political. Government has not fixed any hard
rules upon the entrants in this industry. Any group of
companies that is financially strong can enter this
industry without facing any strict barriers. This is another
threat for National foods that more and more entrants are
coming in this industry and the profit margin shrinking
gradually.

2.1.2 Economical.
2.1.2.1 Income. High as well as middle income
group would be the main users of the Rivaaj pastes. As
prices of Rivaaj pastes are affordable, so middle income
group would also be able to easily purchase from the
local utility shops.

2.1.2.2 Reasonable price. The price of each packet

is Pak Rupees 22 that is reasonable and
affordable.

2.1.3 Social. We won't have to fight against the

social or cultural norms of the society because there is no
opposition to the Rivaaj paste, everyone uses different
masala mix in his house. Our geography, norms, values,
climate, traditions etc. does not pose any opposition to this.

2.1.4 Technological. National foods has engineering and

technical staff of the highest caliber that is capable of
manufacturing such products that differentiates
National foods products from its competitors. National
foods posses specific manufacturing competence for
example use of imported machinery and a high quality
ingredients in manufacturing of powder mix that maintain
the quality of product.

2.1.5 Legal. The production department of

National foods uses special machinery that has to be

14
 imported from abroad. Government has fixed a quota
system that company cannot import it more than a specific
ratio. This quota system is creating a threat for company
and soon company needs to find an alternative.

2.1.6 Environmental.

2.1.6.1 Market Needs. With the product

reference the need of the Rivaaj is its special taste and
balanced ingredients level. It is need of usually working
ladies who do not have enough time for making lunch
and dinner. So according to Rivaaj mostly house hold
ladies would always prefer to by the Rivaaj pastes.

2.1.6.2 Market Trend. Home cooked meals are

a tradition in Pakistan. Meals that call for hours of
preparation in chopping, peeling and grinding. Frying
onions and tomatoes. Now National has simplified this
entire process into three simple steps with the
introduction of a complete recipe cooking paste. Just
add meat, cook and voila, enjoy some of Pakistans
most delicious cuisine.

2.2 INTERNAL ENVIRONMENTS

2.2.1 Human Resources. Human resources include

the social capital that we hire for our company, the
employee that we hire are skilled and experienced because
we are launching a new product so we need to have
experienced staff which can help us in achieving our
objectives in less time. National foods has its proper R & D
team who works only on the product development and to
maintain the quality as well.

2.2.2 Financial Resources. Arrangements of finance is a

core issue, and for that we won't rely totally on private

15
capital because a large amount of money will be required so
we will take loan as well.

2.2.3 Information Resources. Information about

the market when introducing a new product plays a very
vital role in the success or failure of a product. Right kind of
knowledge and information about the market leads to
success, information can be in terms of competitors, and the
people of our target market. The best information source
will be through communication with the normal people that
kind of paste does they like and our target market mainly
are ladies so definitely they would go for something
attractive.

2.2.4 Customers. All the companies have to keep updated

study of their customers and in case of National Foods the
company has always maintained excellent customer
retention. Value of customers for National Foods can be
understood by the factors that National Foods spends a lot of
efforts (financial and human resource) on customer
research.

2.2.5 Intermediaries. Marketing intermediaries help

the company to promote, sell and distribute its goods to the
end users. Intermediaries include resellers, distribution firms
and marketing agencies. All over Pakistan National Foods
has strong dealers network that are working constantly to
provide national food products as well as taking care of after
sale services.

16
 CHAPTER -3

MARKET SEGMENTATION, TARGETING

AND POSITONING

3.1 MARKET SEGMENTATION

Dividing a market into distinct groups of buyers who have distinct
needs, characteristics, or behavior and who might require
separate products or marketing programs.

17
3.1.1 Geographic Segmentation.

3.1.1.1 The rural population. Most of population

in Pakistan is still not aware of value of their time.
Frequently rural women use natural products in there
foods. They also believe that just natural ingredients
are good to maintain their health

3.1.1.2 The urban population. Urban

population will make a good market share of Rivaaj
paste because in urban areas income level of people is
higher than people of rural areas. In urban areas people
generally adopt techniques and means that prevent
wastage of time. Therefore, they are expected to go for
this product in order to save their time.

3.1.2 Demographic Segmentation.

3.1.2.1 Age. People belonging to age groups above

15 wh0 use the product Rivaaj pastes at the time of
cooking lunch or dinner and also focusing above 55
years aged people. We offer less spicy Rivaaj paste for
above 55 years aged people.

3.1.2.2 Family life cycle. Bachelors, young

married and married couples with children would be
one of the major users of this product. Because it is
easy to use it during the cooking process and also less
time consuming

3.1.2.3 Education. Educated people will use Rivaaj

pastes more frequently and preferably because
educated people are always health conscious. So Rivaaj
pastes would be a product in which level of ingredients
are balanced and less time consuming. Though,
uneducated people dont know about Rivaaj pastes but
we are also focusing on the uneducated people
18
 because there is high number of people uneducated in
Pakistan.

3.1.2.4 Income. High as well as middle income

group would be the main users of the Rivaaj pastes. As
prices of Rivaaj pastes are affordable, so middle income
group would also be able to easily purchase from the
local utility shops

3.2 TARGET MARKET

The target market for the product is males, females, restaurant

and hostel living individuals (colleges and universities) of using
this product because people are adopting techniques that prevent
wastage of time so they would go for this product in order to get
rid of long procedure chopping, peeling and grinding, frying
onions and tomatoes etc.

3.3 POSITIONING OF RIVAAJ PASTES

In order to position a product in a market there are certain steps

to be performed which are discussed as below:

3.3.1 Evaluation of the product. The first step

necessary to be kept in mind is the evaluation of the
product, which is done by considering following points:

3.3.2 Innovative. Rivaaj pastes is an innovative

product and people are always ready to except new
and Nobel ideas. It is innovative in the sense that no
such paste has ever been manufactured that saves
time and efforts and there is no paste in the market for
customers against Rivaaj.

3.3.3 Durable.The product has a lifespan of

maximum 2 year, and it is mentioned on the packet.

19
3.3.4 Reasonable price. The price of each packet
is Pak Rupees 22 that is reasonable and affordable.

3.3.5 Impressive packaging. The packaging

of the product is attractive and colorful. These pastes
are available in pouch shape packaging and these are
not harmful to human health. Packaging will be in
various sizes e.g. family size, individual, etc, it would be
also in primary (foil paper) as well in secondary (in
carton) to avoid from germs.

3.3.6 Easy usage. Meals that call for hours of

preparation in chopping, peeling and grinding, frying
onions and tomatoes, Rivaaj has simplified this entire
process into three simple steps with the introduction of
the complete recipe cooking paste , Rivaaj. Just add
meat, cook and voila, enjoy some of Pakistan most
delicious cuisine.

3.3.7 Product feedback. We take pride in

our product marketing plan of Rivaaj, so if there is
anything you wish to share with us, lets know through
this section

3.3.8 Selection Of Brand Name. The brand name

selected for the product is Rivaaj that means custom.
It is feasible because later on in the future when more
product lines will be added it will be convenient enough
to use this name with every product. The brand name
has the following features:
It is easy to pronounce

20
 It is easy to remember
It is relevant to the products the company is
producing
It is not complicated or suspicious
Many other products can be added to this
product line as the name covers range of
products

3.3.9 Selection of Slogan (TAG LINE). During

the selection of the slogan for the product many
different and interesting slogan were made, but the
slogan considered best for this product was KAL BE
YAHI HO JAYE..! in order to encourage people to try a
packet.

3.3.10 Test Marketing. In order to see the response

of people we have conducted the test marketing
strategy by hosting and advertisement in which one of
our co-members took opinions, suggestion and advices
from different individuals, which prove very helpful for
our research.

3.3.11 Monitoring of Positioning. In order to

position the product monitoring of position is the last
but most vital step and should be taken into serious
consideration. There are many ways to monitor the
positioning some of which are discus below:

3.3.11.1 Total Quality Management. The first

way to monitor the positioning of a product is
through Total Quality Management, which involves
the free hand over the employees that is the
employees are encouraged to give there
suggestion, opinion and ideas regarding the
quality and enhancement of a product. Through
this activity innovation takes place.

21
3.3.11.2 Expertise Opinion. During the
positioning our expertise assisted us by giving
there expert opinion, through this we learned how
to further improve the quality, packaging and
branding of our product and to overcome any sort
of shortcomings of our product

3.3.11.3 Questionnaire. We distributed

certain questionnaire to people in order to find
out what their preferences were and in order to
forecast the success of our product
3.3.11.4 Positioning With Respect To Price
and Quality. When we speak in terms of
positioning then one very important thing, which is
to be kept in mind, is the price and quality. The
price and quality should be such that once the
products step outside the factory it is accepted by
people and every individual is eager and capable
to try it. In case of RIVAAJ pastes assurance of
quality will be projected through advertising and
market penetration strategy will be emphasized to
enter into the market whereby we said initially
lower price for the product and create demand and
value for the customers in the market and profit
earning will be through large sale volume
3.3.11.5 Positioning With Respect To
Competitors. The major competitors of RIVAAJ
PASTES by National Foods are Shan & Ahmed
Foods. But we cannot call it competition because
none of these companies have ever introduced
such PASTE so the competition seems to be not
so strong. FMCGS play a stiff competition in the
22
 market and to get a break through this
competition. FMCGS are organization kept on
innovating/introducing new variety of things in the
market, currently for our product there is no
competitor in the market. This is one of the reason
we have introduced Rivaaj Pastes at affordable
price in the market other competitors may not be
able to introduce such product at this price or at
this value.

CHAPTER-4
MARKETING MIX
4.1 FOUR Ps

Four Ps are the most important factors for any company in

making the marketing plan. To be specific, these 4 Ps are:

Product - your product(s) and services

Price - what you'll charge customers for products and
services
Place (distribution) - how you will bring your product(s)
together with your customers
Promotion - how you will promote or create awareness of
your product in the Market place

23
Now we discuss each of these Ps regarding National foods. Each
of 4 Ps has significant importance and each will be discussed
separately.

4.1.1 Product. Product is a term covering goods,

services, places, persons and ideas. Our product is Rivaaj
pastes. We are introducing a radical design that hasnt
been introduced in the market so far. It will be a multi
shades rapper, which has cooking paste inside. Just
add meat, cook and voila, enjoy some of Pakistans most
delicious cuisine.

4.1.2 Price.
Keeping in view the economic conditions of the country and
the purchasing Power of the people it wont wise of to
introduce a very expensive product specially When
introducing a product in a market so our products price will
be affordable for all the Classes of people from lower, middle
and upper class.

4.1.2.1 Quality. Price and quality go side by side

normally the thing that happens is that most of the low
prices goods are poor in quality but as we are
introducing a valuable product, our first main objective

24
 to pant our foot in the market is not to go for higher
profit but we will go for better quality in low price.

4.1.2.2 Pricing. This is another very important

aspect in marketing a product. Because most of the
people in our country adopt or buy any product
because of its low price and high quality so our main
objective is to make a low price and high quality
product.

4.1.2.2.1 Selecting the Pricing

Objective. Every firm has its own pricing
objective it may either or may too:
Survive in the market
To maximize their profits
Market share maximization
Market leadership

But our main selecting price objectives are

market leadership and maximize our market
share.

4.1.3 Place. Determining the place is very important

process because it is the distribution channel, and the role of
distribution channel is to take the product to its target
market. Company decides how, when, how much quantity
and where to place the product so that it is easily accessible
to the customers. Our target is to sell our product in almost
all the big cities of Pakistan, but we will take start from
Karachi. Now we are focusing to sell our product in rural
areas.

4.1.4 Promotion. Promotion is to inform, persuade and

remind a market of a product that an organization is selling
in a hope to influence customer feelings and buying
behavior. By adopting the promotional method we want to

25
inform the market about our product, with the hope that it
will influence the customer feelings and buying behavior.

4.1.4.1 Promotional Strategy. Both pull

strategy and push strategy will be executed to make a
good image in the minds of consumers and to promote
the sale.

4.1.4.1.1 Push Strategy. For an effective

push strategy wholesalers and retailers will be
advised to increase the sale of our product. For
this purpose we will offer them different incentives
and good profit margins so that they convince
their customers to buy our products.

4.1.4.1.2 Pull Strategy. Through

advertisement on different Medias and
promotional campaigns we will make an image in
the minds of end user about our product. Because
we are launching a new product in the market and
there are number of competitors in the market, so
emphasis is to capture the maximum market
share. We will concentrate on our pull strategy so
that we can become leader in the market of this
kind of product.

4.1.4.2 Promotional Campaign. A survey conducted

by us advertising agency owned by company itself
shows that correct media selection has helped
company achieving communication goal. As a
combination of different types of media used (TV,
Radio, and Newspaper) by national foods, 50-70 %
people are accessed out of whole population of
Pakistan. We spends lots of efforts on promotion of its
products as management thinks it is the essence of
marketing that you communicate effectively with your
target customers. Following campaigns will be used for
the promotion of our product:
26
4.1.4.2.1 Sales Promotion. Advertisement will
be done in such a way that people will be waiting
anxiously for our product. We will start giving a
surprise to people that something useful for them
is coming to serve them. We will also use
billboards to promote our product.

4.1.4.2.2 Newspapers. We know that newspaper

is very effective and inexpensive media to convey
the message to target market. Newspapers will be
extensively used to promote our product. General
awareness and advantages of our products will be
communicated to the prospect users by publishing
recipes in the newspaper with the use of that
paste.

4.1.4.2.3 Seminars. To start with an effective

promotion some introductory seminars will be
conducted. In which all the wholesalers will be
invited from different parts of City and Country.
They will be introduced with our product and
promotional plans. We will brief them about the
incentives we are going to offer them. We will
convince them about the strength of our product.

4.1.4.2.4 Television (Telemarketing).We know

that TV is very effective media now a days. We
can convey our message to all the prospects very
effectively. Different ads and commercials will be
run at different times preferably during family
programs (dramas). To use TV intensively is our
long term strategy, which will last the image of our
product in the minds of customers for a long span
of time.

4.1.4.2.5 Public relation and Publicity.

Doctors will be invited in the TV advertisement.
27
 They will discuss about our product because this
product is related to food so this could convince to
the health conscious people. Through Doctors we
will generate the idea about our product that how
much it is necessary in our daily life. Through this
we will establish an effective link between our
product and user. Our relation campaign will also
target different cooking schools to generate
awareness about the use of our product. We will
try to make ladies our advocates.

National Foods also arranges different types of

funfairs, cat walks, cooking competitions,
kids shows, singing competitions etc to
promote its products and invoke the interest
among people.[3]

4.2 MARKET GROWTH

The company management is trying to expand its market by

increasing its sales volume so, here we have raw information
related to sales is as under:

Local sales 106304014

Growth over last year 24.68%

Export sales 101177657

Growth over last year 10.20%

Corporate growth 20.12%

(over last year)

28
 CHAPTER-5

COMPETITOR ANALYSIS
5.1 COMPETITION

Competitors are always the biggest threat to any product this

threat could be in terms of brand competition, substitutes, image
competition and rival companies. The product which we are
introducing is new in its kind, though there are a lot of food
powders that are for food but this will be unique in its kind
because it is a new trend in paste form. We are increasing the

29
product line of an organization so definitely our company already
possesses an image in the market. Although, there are a lot of
substitute brands that may give us tough time but the
competition will be only in terms of powder mix and not the other
features. The big competitors of Rivaaj are:
Shan
Mehran
Ahmad

We have chosen Ahmed Foods as competitor of National Foods.

5.2 PROFILE OF AHMED FOODS

Ahmed Foods has always been a family affair, an enchanted

blend between what is been manufactured and the people
who chooses it; a history made of belief, diligence and
passion that touches millions of hearts. The motivation is
purely driven from the enthusiasm for tasty well-balanced
cooking that each day feeds its desire to provide unique
products which meets consumers changing needs. And with
the passion it has for pleasure, well-being and joy of good
eating, it has now transformed itself into a household brand.
With a name that speaks for itself, Ahmed Foods entail a
huge variety of own labeled products such as jams, jellies,
marmalade, pickles, spices, pastes of spices, canned
mughalai recipes, syrups, chutneys, ketchup, murrabbas,
jelly crystals, custards, kheer mix, vermicelli, etc. It has 16
process completed by skilled sizeable work force which aim
to provide quality assured and nutritious food products to its
valued consumers. And by virtue of these practices, Ahmed
Foods is now celebrated as a trustworthy and caring food
brand, serving millions of consumers in Pakistan, Middle East,
Europe, Kingdom of Saudi Arabia (KSA), Australia, Canada
and United States of America.[4]

30
5.3 HISTORY OF AHMED FOODS

Ahmed Foods was established in 1952, by late Al-Haj Shaikh

Zameeruddin Ahmed, with a vision to spread the sweetness
of love and to create a place where everyone can enjoy a
healthy life. Ahmed Foods relishes the distinction of being the
first food company from the Asian Sub-Continent to introduce
packing methodology and is amongst the innovators who
brought shrink packing, twist off packing, caning, bar coding
and multilingual labeling systems to the Pakistani food
industry. It also stimulated the use of Halal ingredients in the
food-making process, for instance by manufacturing crystal
jelly without gelatin, which signifies Ahmed Foods approach
toward product standardization and to manufacture products
as per the needs of the local consumers. Manufacturing of
products remains the most significant phase for Ahmed
Foods which is conducted under the supervision of
experienced and proficient staff.[4]

5.4 VISION

To facilitate people live healthier, by bringing well-being and

the pleasure of eating into their daily lives.[4]

5.4 MISSION
Since the formation, Ahmed Foods believe that food is a pleasant
and joyful experience, and is a form of sharing, caring and loving.
And in order to make this experience worthwhile:

Ahmed foods strives to offer delightful and healthier food

products to its customers.

31
 Ahmed foods believe in nutritional model locates
simultaneously superior-quality ingredients and simple
recipes developing unique five-sense experience.

Ahmed Foods intend to set up global standards for functional

foods with high added-value, which carry enhanced nutrition
and healthiness for consumers; and awards supremacy in
chosen food products and countries with lofty qrowth for the
company. [4]

5.6 STRATEGIES

Ahmed Foods like to concentrate on single range of product

with intensive strategy, there is no aggressive strategy to
penetrate National market and other products. Still there is
risk involved for Ahmed to stay within the same arena. As
compared to National Foods, Ahmed has limited resources to
grow as being a privately held company.

5.7 GOALS AND OBJECTIVES

Ahmed Foods is devoted to the highest values of corporate and

social responsibility from right through its beginning. It is loyal to
ethical business, activities, practices, sincerity, fair dealing and
full obedience with all laws affecting its business. Added values to
shareholders, customers and to the community in which all social
responsibilities required are embraced by Ahmed Foods.

5.7.1 People Improvement. Every human being has its

own value. Therefore, Ahmed Foods places significance on
development, security, individual dignity, patience and
clearness. Amongst us, strong associations and a sense of
humor will flourish.

32
 5.7.2 Quality is Fundamental. Ahmed Foods has been
fulfilling its own demand by providing best quality to its'
consumers. It will always certify best quality in every
product which is always been at the heart of its business
strategy.

5.7.3 Determined for Innovation. Innovation is one of

Ahmed Foods vital strength for its sustained growth.
Ahmed Foods welcomes employees, consumers and its
stakeholders for suggestions to bring innovation in its
processes and products

5.7.4 Passion. Ahmed Foods is all about improving

peoples lives, which ignites a passion for; improved
consumer satisfaction; achieving goals; and for making
contribution towards society; in everything it does.

5.8 SWOT ANALYSYIS

5.8.1 Strengths .

5.8.1.1 Ahmed food has a very strong heritage

and legacy behind it which has given it a strong
goodwill in households.

5.8.1.2 Ahmed foods enjoys an approximately

50% market share in the recipes mixes category.

5.8.1.3 Ahmed foods is a leading exporter of

food items from Pakistan providing it an
opportunity to tap the large global market which helps
it to expand at a rapid pace.

33
 5.8.1.4 Ahmed has a wide range of products and
SKUs available consolidating its presence in various
niches and keeping its customers loyal to the brand.

5.8.2 Weaknesses.

5.8.2.1 Ahmed is not present in all categories of

spices like National foods thereby loosing an
opportunity market. Many loyal Ahmed
customers purchase National products in these
categories which is causing loss of potential sales.

5.8.2.2 Ahmed has a low market share outside

Karachi in the Punjab market where National enjoys
market leadership. This is due to weak
distribution of Ahmed products in Punjab market
which is causing loss of potential sales.

5.8.2.3 Inadequate and insufficient advertisement of

its products is another weakness which is not there in
case of its competitors.

5.8.3 Opportunities.

5.8.3.1 Ahmed can vertically integrate to produce its

own raw materials which will not only reduce costs but
will also provide it more control over the quality of
input.

5.8.3.2 Ahmed currently has a very low

advertising spend in the FMCG industry. It can
deploy brand activations and other innovative
campaigns to switch customers from the loose/
unbranded segment to Ahmed products.

5.8.3.3 Ahmed can also horizontally expand its scope

like national foods and enter the other related food
34
 categories where it can tap its loyal customers with
minimal extra efforts.

5.8.4 Threats.

5.8.4.1 The biggest threat to Ahmed is the high

inflation in Pakistan coupled by a global recession
which is putting pressure on the profits and sales.

5.8.4.2 The prevalence of counterfeit products is

also threat to Ahmed causing loss in goodwill and
potential sales.

5.8.4.3 The emergence of newer brand with deep

pockets can also damage Ahmeds market share
due to heavy advertisement while keeping the
product quality close to that of Ahmed.

CHAPTER-6
REASONS FOR FAILURE
6.1 VISIT TO NATIONAL FOODS
6.1.1 Visit Of Paste Plant. National Foods
performs following processes in Pastes' plant:

6.1.1.1 Bottle Washing (With bleach water and

plain water)

6.1.1.2 Boiler (Supply steam from soft water

have feed water tank)

6.1.1.3 Cold Mixer (To mix cold ingredients)

35
 6.1.1.4 Three (3) Cooking Vessels

6.1.1.5 (JAMS/JELLIES)(INTERMEDIATE)(HOT &

SPICY)

6.1.1.6 Filling Machine

6.1.1.7 Capping

6.1.1.8 Sealing

6.1.1.9 Labeling

6.1.1.10 Packing

6.1.2 An Interview With National Foods

Marketing Team. Marketing team of National
Foods was interviewed w.r.t reasons for failure of their
Rivaaj Paste. Salient of the discussion is given in the
form of Q & A as follows:

Question-1: What was the rationale to launch

Rivaaj Paste, when we know in our society people
like to use fresh ingredients for cooking?

Answer: It's true that most of people like to use fresh

ingredients while cooking but there is a large segment
of the society with working women and many people
living in hostels as well. Our target was that group of
society.

Question: As working class of women was your

target for Rivaaj Paste, why more efforts were
made on advertising the product in rural areas?

36
 Answer: Yes, for urban areas only print and selected
electronic media was used, whereas all sorts of
advertising efforts were in rural areas with speculation
that urban population is generally more educated and
has better access to these information media. However,
the strategy did not pay the perceived dividends.

Question: Don't you think that short expiry life of

Rivaaj paste after opening was one of the
reasons for its failure?
Answer: It's important to note that ingredients used in
the Rivaaj paste are pure; no preservatives, therefore,
its life after opening is comparatively short which might
have had effect on its market share.

Question: what is your opinion about price of the

paste?

Answer: The launching price of the paste was PKR 22

only, which was inevitable to earn target profit.
However, lower price could have been an option to
avoid altogether failure of the product.

Question: In your opinion what were the reasons

for failure of the product?

Answer: Well, the biggest reason for not achieving the

desired results was 'marketing failure', in that National
Foods spent huge amount on advertisement in rural
area and did not concentrate on urban population.
Contributing factors which came into light as feedback
include price, expiry life, taste and packaging etc. [5]

6.2 FEEDBACK OF NATIONAL FOODS RETAILERS

Visits were paid to different markets to have feedback of National

Foods retailers. Each retailer had almost same experience.

37
Bottom line was packaging of the paste was not attractive and
the price was also on higher side. Therefore, any customer hardly
returned to buy the paste again. Instead they preferred to buy
the other spices and ingredients to prepare cooking pastes at
home. [6]

6.3 CUSTOMER FEEDBACK

A number National Foods customers, who also used Rivaaj Paste,

were visited and interviewed. Consumers were of the view that
taste of the foods cooked with Rivaaj paste was not as good as
was with homemade paste using fresh ingredients. Moreover, the
paste was good for one time use, its aroma would change if left
open for some time. The effect of aroma change would occur in
very less time if was left outside the freezer. Furthermore, though
use of Rivaaj paste saved time but it was more economical and
cost effective to prepare cooking pate at home with fresh
ingredients. [7]

6.4 FINDINGS & ANALYSIS

Keeping in view interview with marketing team of National Foods,

feedback of retailers and the consumers, following are considered
reasons for failure of Rivaaj paste:

6.4.1 Poor Target Marketing; National Foods

targeted mainly house wives in rural areas.

6.4.2 Wrong Advertisement Strategy; National Foods

spent huge amount on advertisement just in rural areas,
resultantly, adding into financial coast

6.4.3 Taste; Taste of food cooked using Rivaaj paste was

not as good as with homemade paste with fresh ingredients.

38
 6.4.4 Short Expiry Life; Rivaaj paste had a short life
after opening, particularly without refrigerating. This aspect
becomes more important when target market was rural
areas where very few people can afford refrigerator.

6.4.5 Poor Packaging; Packaging of Rivaaj paste was

not attractive and eye catching.

6.4.6 Inappropriate Price; The launching price of Rivaaj

paste was considered high as it was felt more
economical by the consumers to prepare cooking paste at
home with fresh ingredients.

CHAPTER-7
OUR STRATEGIES

7.1 TARGET MARKETING

Our main target is working women class and hostel living

individuals. However, house wives in other segments of

39
society will also be targeted. Therefore, we will concentrate
more on promotion and advertisement in urban area.

7.2 ADVERTISEMENT STRATEGY

We will mostly use modern and cost effective means i.e., through
social web sites and print media for advertisement.

7.3 TASTE

Customers' complain regarding taste of food cooked with Rivaaj

paste will be addressed through adding new spices and
ingredient.

7.4 IMPROVED EXPIRY LIFE

Expiry life of the paste after opening will be improved through

use of health-friendly preservatives. The paste such prepared
will be useable for a week time after opening. In order to
maintain quality of the paste, it will be better to store the same
in its own or plastic jar.

7.5 PACKAGING

Previously Rivaaj paste was wrapped in a sachet. In order to

make it more attractive, hygienic and convenient in use, we
will pack our paste in a jar.

7.6 ECONOMICAL PRICE

Price of Rivaaj paste upon re-launching will set as Rs 35 which is

much economical with compare to other spices of National
Food. We are cognizant that this launching price will generate
low profit but our 1st and foremost objective is to hold grounds
in the market because we are re-launching an already failed
product.

40
7.7 MARKETING MIX STRATEGIES

Four Ps are the most important factors for any company in

making the marketing plan. To be specific, these 4 Ps ar:

a. Product - your product(s) and services

b. Price - what you'll charge customers for products and

services

c. Place (distribution) - how you will bring your

product(s) together with your customers

d. Promotion - how you will promote or create awareness

of your product in the Market place

Now we discuss each of these Ps with regard to Rivaaj Paste.

7.7.1 Product. Product is a term covering goods,

services, places, persons and ideas. Our product is Rivaaj
pastes. We are introducing a jar that will contain the cooking
paste. The jar will have wrapping of multi shade paper.

7.7.2 Price. This is another very important aspect in

marketing a product. Because most of the people in our
country adopt or buy any product because of its low price
and high quality so our main objective is to make a low

41
price and high quality product. Our products price will be
affordable for all the Classes of people from lower, middle
and upper class.

7.7.2.1 Selecting the Pricing Objective. Every

firm has its own pricing objective it may either or may
too:
a. Survive in the market
b. To maximize their profits

c. Market share maximization

d. Market leadership

But our main selecting price objectives are market

leadership and maximize our market share.

7.7.2.2 Quality. Price and quality go side by side

normally the thing that happens is that most of the low
price items are low quality but as we are re-launching
our product, our main objective would be to hold
ground in the market and not to go for higher profit but
we will go for better quality in low price to regain trust
of the customers.

7.2.3 Place. In order to take our product i.e., Rivaaj

paste to its target market, we must determine a suitable
place. We have to decide how, when, how much quantity
and where to place the product so that it is easily accessible
to the customers. Our target is to sell our product in almost
all medium to big cities of Pakistan, starting from Lahore. We
will also make the pastes in rural areas as well.

7.7.4 Promotion. Promotion is to inform, persuade

and remind a market of a product that an organization is
selling in a hope to influence customer feelings and buying
behavior. By adopting the promotional method we want to

42
inform the market about our product, with the hope that it
will influence the customer feelings and buying behavior.

7.7.4.1 Promotional Strategy. Both pull and

push strategies will be executed to make a good image
in the minds of consumers and to promote the sale of
the cooking paste.

7.7.4.1.1 Push Strategy. For an

effective push strategy wholesalers and retailers
will be offered good incentives and margins so
that they convince their customers to buy our
products.

7.7.4.1.2 Pull Strategy.Through advertisement

on different Medias and promotional campaigns
we will make an image in the minds of end user
about our product. Because we are re-launching a
product in the market and there are number of
competitors in the market, so emphasis is to
capture the maximum market share.

7.7.4.2 Promotional Campaign. We will launch

promotional campaign through all sorts of electronics
as well as print media. Our aim would be to reach to
more than 50% of the population of Pakistan. Following
campaigns will be used for the promotion of our
product being re-launched:

7.7.4.2.1 Sales Promotion. Advertisement will

be done in such a way that people will be waiting
anxiously for our product. We will start giving a
surprise to people that something useful for them
is coming to serve them. We will also use
billboards to promote our product.

7.7.4.2.2 Newspapers. Newspaper is an

effective and inexpensive media to convey the
43
message to target market. Newspapers will be
extensively used to promote our product. General
awareness and advantages of our products will be
communicated to the prospect users by publishing
recipes in the newspaper with the use of that
paste.

7.7.4.2.3 Seminars. To start with an effective

promotion some introductory seminars will be
conducted. In which all the wholesalers will be
invited from different parts of City and Country.
The attendees will be convinced that Rivaaj paste
being re-launched is not the same which failed and
the key improvements/ changes will be
highlighted.

7.7.4.2.4 Television (Telemarketing). TV is very

effective media for communicating our message to
the masses. Different advertisements and
commercials will be run during peak hours and
family programs (dramas).

7.7.4.2.5 Public Relation and Publicity. We

will promote our re-launched Rivaaj paste through
live interviews with doctors and working class
ladies. This way both health conscious and busy
people will get the intended message. Through
this we will establish an effective link between our
product and user. Our relation campaign will also
target different cooking schools to generate
awareness about the use of our product.

44
 CHAPTER-8

CONCLUSION & RECOMMENDATIONS

8.1 CONCLUSION
There are always reasons behind every occurrence, nothing
happens just like that. There are always flaws and shortcomings
which cause failure. Likewise, failure of Rivaaj paste also had a
story. There were a number of reasons and factors which
National Foods failed to control and resultantly their product
which they expected to be top of the line badly failed. National
Foods did not target the right segment of market; concentrated
on house wives in rural areas rather than working class women in
urban areas. Packaging of Rivaaj paste was not attractive and
convenient to use. Useful life of the paste after opening was very
short and was good for one time use only. Taste was not so
appealing that people would ignore some other factor for sake of.

45
The company did not consider using lesser price to attract
customers. In nut shell, it was gross failure of company's
marketing as a whole. Because, its marketing team could not
read the need and requirement well. Resultantly, failed to focus
on the right segment of society. Spent huge amount on
advertisement without considering cheaper ways of marketing
and evenly distributing its efforts on various target segments of
the society. Subsequently, failed to get timely feedback from
retailers and customers, and take appropriate measures to avoid
collapse of the brand.

8.2 RECOMMENDATIONS

In order to re-launch Rivaaj paste, we have to cater for all those

factors which National Foods failed to take into consideration. It
is recommended that:

Target working women class and hostel living

individuals; mostly in urban areas

Marketing efforts be rationally used for all target

segments of the market

Use economical means of marketing to avoid financial

burden on the company finance

Use jar instead of wrapper for convenient use and

attractiveness of packing

Life of the paste after opening should be compatible

with other tinned foods i.e., 4 to 6 days

46
 Change recipe to enhance good taste of the food
cooked using Rivaaj pastes

REFERENCES

1. https://www.scribd.com/doc/19449268/National-Foods

2. nfoods.com/wp/wp.../2015/09/annual-report-2014-15-
national-foods.pd.. .

3. www.Pakistan.com/national+foods

4. www.ahmedfood.com.pk/

5. Interview - National Foods Marketing Team

6. Interview - National Foods Retilers

7. Interview - Rivaaj paste Consumers

47