National Foods Limited
CHAPTER # 1 RIZWAN KHALID (2K20/MBA(H)/61)
1. Elaborate how your selected firms are market oriented?
The National Foods:
Nati onal Foods is a well-known name in market. It was founded in 1970 and started out
as a Spice company and now is a major food products company in Pakistan. 3 decades later it has
diversified into a versatile Food Company with o v e r 1 5 0 a n d a b o v e p r o d u c t s a n d 1 0 0 a n d
a b o v e S K U s ( S t o c k K e e p i n g U n i t ) f o r t h e domestic market and over 100 different products
for the international markets.
Discovering the Symphony of Flavors
National Foods began its journey in 1970 as a Spice company with a revolutionary product that
popularized the concept of having clean, healthy food. National foods’ initiatives since then is to make
hygienic food, reduce time spent in the kitchens, foster health and contribute towards a positive and a
more rewarding lifestyle.
T h e v i s i o n t o s e e N a ti o n a l F o o d s a s a p r o f e s s i o n a l l y m a n a g e d H u m a n R
e s o u r c e company, set more then 7 years ago, was realized by transforming a local company into a
very dynamic and progressive management structure in line with industry practices. Competent Human
Resources from within the company have fuelled tremendous growth by excelling in Functional
Management. Even after 3 decades the company's focal point s ti l l r e m a i n s o n Customer's
needs through Product e n v e l o p m e n t i n l i n e w i t h t h e changing market trends. In this
innovative age of ever changing lifestyles, fuelled by the rampant development of t e c h n o l o g y ;
c o n s u m e r s h a v e b e e n c o m p e l l e d t o c h a n g e t h e i r e a ti n g h a b i t s .
N a ti o n a l F o o d s r e s p o n d s t o t h i s c h a l l e n g e o f d e v e l o p i n g i n n o v a ti v e f o o d p r o d u
c t s b a s e d o n convenience and fast preparation in line with modern lifestyles and yet retains
traditional values through its impressive collection of food products. The brand delivers its ultimate
promise by consistently delivering value to its consumers. Nati onal Foods enriches family
relati onships 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 att racti on for their family that
wins praise every time.
OUR BRANDS
Complete Kitchen Solution
In a history that now spans over four decades, National Foods success is attributed to its ability to
respond to changing needs of the consumers, the technological advancements and its innovative
product development. With its wide array of brands, National Food’s focus on innovation has altered the
kitchen habits of millions of consumers who now have the advantage of preparing healthy and delicious
food with a lot of convenience
2. Describe the characteristics of your selected firm.
1. Community Vision – markets thrive when they are at the centre of their community. Links
with local charities, communal stalls to sell allotment grown produce and supporting local start-
up businesses are all examples in action
2. Location – keep it central, busy and convenient
3. Good Facilities – hygiene facilities for traders, and goods availability for visitors
4. Stallholder fit – the brand ambassadors for the market! They should be passionate
advocates for what they sell
5. Product offer – getting the mix right to attract regular shoppers and passing visitors on a day
out
6. Good value – not just about price but includes the overall experience and product quality
7. Entertainment & Marketing – tell the public about your market and then encourage
8. Local authority support – engage in dialogue from the outset
9. Economic feasibility – markets typically take 3 years to become profitable
10. Strong management structure – define roles and responsibilities and get others involved
3. What the corporate Characteristics of your firm?
1. Very high assets and turnover
To become a multinational corporation, the business must be large and must own a huge amount of
assets, both physical and financial. The company’s targets are high, and they are able to generate
substantial profits.
2. Network of branches
Multinational companies maintain production and marketing operations in different countries. In each
country, the business may oversee multiple offices that function through several branches and
subsidiaries
3. Control
In relation to the previous point, the management of offices in other countries is controlled by one head
office located in the home country. Therefore, the source of command is found in the home country.
4. Continued growth
Multinational corporations keep growing. Even as they operate in other countries, they strive to grow
their economic size by constantly upgrading and by conducting merge and acquisition
5. Sophisticated technology
When a company goes global, they need to make sure that their investment will grow substantially. In
order to achieve substantial growth, they need to make use of capital-intensive technology, especially in
their production and marketing activities.
6. Right skills
Multinational companies aim to employ only the best managers, those who are capable of handling
large amounts of funds, using advanced technology, managing workers, and running a huge business
entity.
7. Forceful marketing and advertising
One of the most effective survival strategies of multinational corporations is spending a great deal of
money on marketing and advertising. This is how they are able to sell every product or brand they make.
8. Good quality products
Because they use capital-intensive technology, they are able to produce top-of-the-line products.
4. What modern challenges are facing by your selected firm?
he 'Plastic ban' ...
The rise of health-consciousness among consumers. ...
The rising concerns about product traceability. ...
The ascent of meat-free & veganism trend. ...
The optimum level of stringency in the regulatory landscape. ...
The increasing complications of inventory management. ...
The pervasive presence of eCommerce.
CHAPTER # 2
1: What are the product/ services of your firm?
SNACKS
CHAT MASALA
DHAI BHALA
PAKORA
FRUIT CHAAT MASALA
CHUTNI
CHINESE
CHINESE SALT
SOYA SAUCE
VINEGAR WHITE
CHILLI SAUCE
SALT
TABLE SALT
IODISED SALT
POWER DRINK (KNOWN BY THE NAME OF FRUITILY)
ORANGE
MANGO
LEMON
MIXED FRUIT
DESSERTS
VANILLA
STRAWBERRY
BANNANA
MANGO
RICE
BOMBAY BIRYANI
SUPER KERRENEL BANASPATI
LONG GRAIN BANASPATI
KETCHUP
TOMATO KETCHUP
CHILLI GARLIC SAUCE
HOT AND SPICY SAUCE
JAMS
APPLE
MANGO
MIXED FRUIT
STRAWBERRY
BLACKCURRENT
PICKLES
MIXED
MANGO
GARLIC
KASUNDI
CHILLI
HYDERABADI MIX
KARELA
MIX VINEGAR
MANGO VINEGAR
READY TO EAT (KNOWN BY RONAQ)
CHICKEN QORMA
CHICKEN BARYANI
CHICKEN WHITE KARHAI
CHICKEN KARHAI
CHICKEN HALEEM
CHICKEN ACHARI
CHICKEN NIHARI
QEEMA
ACHAR GOSHT
BBQ
CHICKEN TIKKA
CHICKEN SEEKH KABAB
BIHARI KABAB
TIKKA BOTI
CHICKEN TANDORI KABAB
CHICKEN RESHMI KABAB
MALAI TIKKA
PLAIN SPICE
GARAM MASALA POWDER
CURRY MASALA POWDER
CORIANDER POWDER
GARLIC POWDER
CHILLI POWDER
BLACK PEPPER
KASURI METHI
GINGER POWDER
Customer service strategies of National Foods
Make great service a priority
Store collective wisdom
Empower your staff
Know your Customers
2: Write detail of three market characteristics of your firm?
(1). Functions or uses of the product.
The Function of Food
stay alive, be active, move and work;
build new cells and tissues for growth;
stay healthy and heal themselves;
prevent and fight infections.
For Example Functional foods may include: Conventional foods such as
grains, fruits, vegetables and nuts. Modified foods such as yogurt, cereals and orange juice
Consider eating more of these nutrient-dense, functional foods.
Cold-Water Fish — Sardines and Salmon
Nuts
Whole Grains — Barley.
Beans. ...
Berries.
(2) The enabling technology of the product.
Modern technology such as chemical fertilisers, pesticides, herbicides, modern agricultural
machinery, artificial selection... have been used to increase food production. Development
and use of chemical fertilisers on farm land à boots levels of nutrients in the soil, increasing crop
yields
(3) Customer segments in the product market.
3: Who are the key competitors of your firm?
Major competitors of National foods are Shan Foods.
The biggest competitor of National foods is Shan foods. Every year NAF spends large amounts
of capital is researches to analyze its competitor’s strengths and weaknesses.
MITCHELL’S F OODS
SHEZAN FOODS
MEHRAN FOODS
GK MASALA FOODS
PURO FOODS
HABIB FOODS
MILAN FOODS
RONAQ FOODS
AHMED FOODS
SALMAN FOODS
CHEF’S PRIDE FOODS
ZAIQA FOODS
SELANI FOODS
4: Present the SWOT ANALYSIS of your firm and close competitors
NATIONAL SWOT ANALYSIS
STRENGTHS
BROAD PRODUCT LINE.
BROAD MARKET COVERAGE.
MANUFACTURING COMPETENCE.
GOOD MARKETING SKILLS.
ENHANCED RESEARCH AND DEVELOPMENT.
1. APPROPRIATE ORGANIZATIONAL STRUCTURE.
2. GOOD FINANCE MANAGEMENT.
WEAKNESSES
Currently National food is operating with its full capabilities and Companies 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.
Ronaq product failed in the market and we have to divest it.
OPPORTUNITIES
We are moving towards mayonnaise and noodles.
OPPORTUNITIES EXPANDING INTO FOREIGN MARKETS.
EXPANSION OF CORE BUSINESS.
THREATS
THREATS NEW ENTRANTS.
NO BARRIERS ON ENTRY.
NEW FORM OF INDUSTRY COMPETITION.
Shan is a toughest competitor, it has 78% market share. Shan has an annual sale of 12000 tons
whereas National Foods has only 7000 tons sale.
SHAN SWOT ANALYSIS
STRENGTHS
Shan food has a very strong heritage and legacy behind it which has given it a strong
goodwill in households.
Sham foods enjoy an approximately 50% market share in the recipes mixes category.
Shan food is a leading exporter of foods items from Pakistan providing it an opportunity
to tap the large global market which helps it to expand at a rapid pace.
Shan has a wide range of products and SKU’s available consolidating its presence in
various niches and keeping its customers loyal to the brand.
WEAKNESSES
Shan is not present in jams and marmalades, ketchups categories like National foods
thereby loosing an opportunity market. Many loyal Shan customers purchase National
products in these categories which is causing loss of potential sales.
Shan has a low market share outside Karachi in the Punjab market where National
enjoys market leadership. This is due to weak distribution of Shan products in Punjab
market which is causing loss of potential sales.
OPPORTUNITIES
Shan 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.
Shan 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 Shan products.
Shan can also horizontally expand its scope like national foods and enter the other
related foods categories where it can tap its loyal customers with minimal extra efforts.
THREATS
The biggest threat to Shan is the high inflation in Pakistan coupled by a global recession
which is putting pressure on the profits and sales.
The prevalence of counterfeit products is also threats to Shan causing loss in goodwill
and potential sales.
The emergence of newer brand with deep pockets can also damage Shan’s market share
due to heavy advertisement while keeping the product quality close to that of Shan.
