Subject:

Business Research
Assignment:
Research project on
‘’National Foods Ltd.”
Submitted To:
Mam Mehreen
Submitted By:
Saba Ilyas (2079)
Maryum Saleel (2060)
Rida Zainab (2089)
Qudsia (2072)
Zara Ijaz (2097)
Section:
(B)
Dated:
2 April 2019
Profile report on: NATIONAL FOODS LIMITED

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Profile report on: NATIONAL FOODS LIMITED

1. EXECUTIVE SUMMARY:
National Foods Limited (NFL) began its journey in 1970 as a Spice company, with revolutionary
products that popularized the concept of having clean, healthy food. These products fall into the
categories of plain spices, salt, recipe masala, Chinese salt and vinegar, pickles, ketchups, jams
jellies, snacks, desserts and much more. At first, the report particularizes the Product portfolio of
the company in detail, evaluating each product and its further divisions. Further, the main focus
is kept on the product named “Rivaaj” by National Foods Limited in2009. Its marketing tactics
have been discussed in depth. The marketing mix i.e. Product, Price, Promotion and place have
been elaborated. The marketing mix of Rivaaj discusses about what the product is, e.g. Features,
quality, category etc. Pricing strategy adopted by NFL for this product has been defined. Best
serving promotional channels for Rivaaj have been defined along with various promotional
techniques. SWOT analysis of the company also defines its strengths, weakness, opportunities
and threats in the market. BCG matrix also distinguishes the category of Rivaaj in the market.

Food! What we eat defines our personality, shapes our way of living and chalks out our physical
appearances.
National Foods is one such company, dedicated to improving lives through providing healthy,
innovative foods items that excel in quality and provide value for money. With a range of over
110 products in 12 major categories, we are one of the largest food companies in the business.
This report has covered all the major areas where NATIONAL FOODS LIMITED has proved its
ground of competition & marketing.

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Profile report on: NATIONAL FOODS LIMITED

Table of Contents
Introduction:-..........................................................................................................................................5
History of National Foods:.......................................................................................................................6
Profile Business........................................................................................................................................7
Our Mission STATEMENT.........................................................................................................................8
Our Vision................................................................................................................................................8
CORE VALUES...........................................................................................................................................9
MULTI- CATEGORY FOODS.....................................................................................................................10
National Instant Noodles:......................................................................................................................12
Market Segmentation............................................................................................................................13
TARGET MARKET...................................................................................................................................14
Marketing Mix.......................................................................................................................................15
Organizational Structure........................................................................................................................15
Competitor Analysis...............................................................................................................................17
Porter's Five Forces Model....................................................................................................................17
CORPORATE LOGO.................................................................................................................................20
Brand Pillars..........................................................................................................................................20

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Profile report on: NATIONAL FOODS LIMITED

National Foods Limited

Company Description

Introduction:-
National Foods began its journey in 19 February1970 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.

The company was incorporated in Pakistan on 19 February 1970 as a private limited

company under the Companies Act, 1913 and subsequently converted into a public limited
company under the Companies Ordinance, 1984 by a special resolution passed in the
extraordinary general meeting held on March 30, 1988. The company is principally engaged
in the manufacture and sale of convenience-based food products. It is listed
on Karachi, Lahore and Islamabad Stock Exchanges. The registered office of the company is
situated at 12 / CL - 6, Claremont Road, Civil Lines, Karachi.

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Profile report on: NATIONAL FOODS LIMITED

History of National Foods:

National Foods was formed when the present management took over a small company called
"National Food Laboratories Limited", with the idea of introducing spices in branded, clean,
packaged form to the consumers. This was a revolution in the Pakistani market.

1970-1980

The Company began its life in a rented warehouse in Dinar Chambers with an initial sale of only
Rs 16,487 in its first year. In 1978 National foods limited purchased a new spice mill and
packaging plant as a step towards being a progressive company.

1980-1990

In 1981, the company launched its Salt Products which proved out to be a successful and
lucrative venture for the company. In 1986, the new factory complex was constructed. In 1988,
National Foods became the certified vendor of McCormick, USA, as part of their Supplier
Certification Program. The certification was awarded on the basis of excellent production and
quality credentials. In the same year, National Foods, then a Private Limited company was
converted into a Public Limited concern.

Guided by its founding principles of quality and purity (which remain intact), National Foods
enjoyed success in its pioneer venture, which permitted steady expansion into other categories.

1990-2000

1991 experienced diversification in the company's products portfolio with the launch of the
pickle range. In 1992, as an effort towards contribution for social welfare and responsibility, it
joined hands with UNICEF, in order to propagate the use of iodized salt, to fight diseases like
goiters. In 1997, National Foods ventured forth with its wet range and Ketchups and Jams were
launched in the market. The ISO certification achieved in 1998 further assisted our pursuit of
excellence.

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Profile report on: NATIONAL FOODS LIMITED

In 2000, mainstream products were launched in Australia to offer ethnic food to non-Asian
consumers.

2000 to till now

2002 has been a crucial year as it has witnessed three major capital investments, namely the
launch of Bin Qasim Industrial Unit, deployment of a New Sauce Plant and ERP (Enterprise
Resource Planning) Software implementation.
It has been 30 years since National Foods was formed. Today, it is well established, in fact a
household name. Its products are sold not only domestically, but also in far-flung corners of the
globe.

Profile Business
NFL has successfully established itself as a multinational food company with an independent
subsidiary, National Foods DMCC in Dubai, in 2013, catering to the Middle Eastern market.
This structure was further expanded with 2 more subsidiaries in Canada, (National Epicure Inc.)
and United Kingdom, (National Foods Pakistan UK Limited) catering to the North American and
European markets respectively.

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Profile report on: NATIONAL FOODS LIMITED

During 2017, National Epicure Inc. acquired 60% interest in A-1 Bags and Supplies Inc., a
company based in Ontario, Canada, engaged in distribution of restaurant, industrial, & retail
supplies. Today, National Foods provides a complete food experience to its customers in 33
countries around the world. National Foods produces over 300 SKU's in 12 major product
categories including meal solutions, pickles, sauces, ketchup's, jams and desserts. National Foods
is reaching out to the voice of its customers by delving further into the convenience food
segment and adhering to their philosophy of offering superior taste and quality.

Our Mission Statement

 To deliver consistent quality to our customers using pure ingredients, authentic recipes and
the best available technology.
 Dedicated to continuous improvement through active alliances with international companies
by expanding technological and product horizons.
 To maintain close and direct contact with our customers through consumer insights and
dedicated service.
 To provide external and internal customer service by excelling in functional management.
 To promote professionalism at all levels through education, training and development of
human resources.
 To deliver a fair return to our valued investors and shareholders, annually, in line with
industry norms and economic conditions.
.

Our Vision
 To   be   an    INNOVATIVE, MARKETING and RESEARCH oriented company.
 To be a leader and take advantage of our leadership position in all product categories.
 To develop products with market potential through the means of indigenous technology and
Research & Development.
 To market our products globally.
 To target new, emerging segments of the food market.
 To become a global brand.

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Profile report on: NATIONAL FOODS LIMITED

 Mission 20/20

To be a Rs.50 billion company 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 level.

CORE VALUES
1. PASSION

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

2. PEOPLE-CENTRIC

We put our people first. We treat them with respect and actively contribute towards their
development.

3. CUSTOMER FOCUS

We see the world through the eyes of our customers. We do everything possible that makes them
happy.

4. LEADERSHIP

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

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.

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Profile report on: NATIONAL FOODS LIMITED

6. ETHICS

We don’t run our business at the cost of human or ethical values.

7. ACCOUNTABILITY

We see. We act. We take full responsibility for our actions and results. We don’t blame others
for our mistakes; we analyze them and correct them.

MULTI- CATEGORY FOODS

National Foods offers an exciting range of products in a variety of categories including Recipe
Masalas, Spices, Pickles, Desserts, Chutneys & Sauces, Rice, and Ready to Eat Meals, Snacks
and many more. The extended range allows customers to experience the complete Pakistani
cuisine in its finest form. Easy to prepare recipes; ensure convenient solutions to preparing
delicious meals every day.

Product Brand:-
As National food is a known name in market, it has already different brands in market like
Jams,Ketchup, Achar, Kheer mix, Custard powder, etc. Now National food is introducing a
new brand named Rivaaj.

 National food is introducing the six different

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

New PRODUCTS

DIET JAMS: Apple Jam & Orange Marmalade

With the trend of healthy eating emerging and more customers
Looking for lower calorie products, we captured this

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Profile report on: NATIONAL FOODS LIMITED

As an opportunity, and introduced two new variants

In the new Diet jams range to satisfy consumer
needs and to increase market share in the Jams category.

CHATPATTI BOMBAY BIRYANI

The market for recipe mixes continue to grow exponentially

And to give further variety to our customers and increase
Market share, a new addition in Biryani range with a
Different profile was introduced in Karachi.

LAUNCH OF 3 NEW PICKLES

New product development is a core function of IRD

Department and to enhance our business, three new exciting
Variants namely: Kasundi Pickle, Karela Pickle and
Spicy Mixed Pickle was introduced in the local market.
Keeping “Customer First” in mind, these new variants
Were launched in two different SKUs giving more variety to consumers to choose from. Along
with a superior taste, aroma and quality, Karela pickle also offers nutritional and health benefits
for the diabetic patients.

Line Extensions:
PLAIN SPICES & RECIPES LUPs:

To increase penetration of plain spices and recipe mixes in rural and semi-urban areas, low unit
price SKUs were launched leading to incremental sales and enhanced customer acquisition.
Variants are as follows:

Plain Spices

Red Chilli Powder

Coriander Powder

Turmeric Powder

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Profile report on: NATIONAL FOODS LIMITED

Recipe Mixes

Biryani Masala

Bombay Biryani

Quorma Masala

Achar Gosht Masala

Murghi Masala

Karahi Gosht Masala

Curry Masala

National Ketchup & sauces

National Instant Noodles:

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Profile report on: NATIONAL FOODS LIMITED

National Foods Limited is launching its new category of product which is ‘’National Instant
Noodles’’ considering the market needs, target market and as well as its Competitors like Knoor
Noodles, Maggi Noodles, Shan Shoopy Noodle’s etc. We‘ll bring our product with a unique
delicious taste to make our loyal customer with a target of building new unique taste among all
competitors. The National food has a R&D team who works on all these issues and then brings a
new trend in market. We always look for the customer’s Benefits and Quality products.

Market Segmentation
Dividing a market into smaller groups of buyer’s distinct needs characteristics or behaviors that
might require separate products or marketing mix. Following are the major basis of segmentation
of national foods Pakistan.

Segmentation Variables Data

Geographic Segmentation:-
World region  Asia

Country Pakistan

Cities  All major cities of Pakistan

Density Urban-Rural

Climate  Hot & dry

Demographic Segmentation:-
Age 18-60

Gender  Male, Female

Family size  1-2, 3-4, 5 above

Family life cycle  Married & Unmarried

Occupation  White collar & service workers

Religion All

Race Asian
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Profile report on: NATIONAL FOODS LIMITED

Nationality Pakistani

Behavioral Segmentation:-
Occasion  Any occasion

Benefits  Quality, taste, flavor and brand status

Loyalty Status  Significantly high

Attitude towards brand  Positive & enthusiastic

Psychographic Segmentation:-
Social class  lower to elite class

Life style  achievers, strivers, survivors

Personality  compulsive gregarious authoritarian ambitious

TARGET MARKET
National foods target:

Age:

 We target women of 16-45 age groups of middle and high class for our product. Women are the
target market as they are the decision maker in the home. They take all decisions regarding
cooking as they better know which food items are best for cooking. This is because of the reason
that in this part of the world, women are mostly related to the food and cooking. Hence, National
Foods develops products that are according the needs and wants.

Targets of our new product: Our targets for our new product are women, children and
youngsters. National instant noodles are easy to cook and get ready in 5 minutes and are best in
small appetite. We are going to introduce a unique taste & flavors in our noodles so that we can
attract a pool of people toward our product.

Income Level:

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Profile report on: NATIONAL FOODS LIMITED

On the basis of income level those are targeted for our products which have high level and
middle level of income as the prices for our product is much reasonable and affordable that
anyone can easily buy the product.

Tastes Preference:

On the basis of taste preference people who like spicy and chilled foods are the main target as
people of Bhutan love tasty and spicy foods.

Marketing Mix
PRODUCT:

 Design and physical characteristics

 Price
 Quality
 Classification

PRICE:

 Pricing objective
 Determining demand
 Competitor’s price
 Pricing method

PROMOTION:

 Push strategy
 Pull strategy
 Promotional campaign
 Sales promotion (Telemarketing, newspapers, etc.)

Advertising Campaign:
o “Humaray Khanay Humara Pyaar” for National Spices
o Wedding song by Musarrat Nazir named “Chitta Kukarh Baneyre Te”
o “National Ketchup Zaroori”

PLACE:

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Profile report on: NATIONAL FOODS LIMITED

 Distribution chain used in Karachi: Producer –Wholesaler- Retailers- End user

 Distribution chain used outside Karachi: Producer –Agents- Wholesaler- Retailers- End
user.
 All Areas on all over Pakistan & abroad as well.

Organizational Structure

2. Industrial Analysis:-

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Profile report on: NATIONAL FOODS LIMITED

SWOT Analysis of National Food Ltd.

Strengths:
 Broad product line
 Brand market
 Manufacturing competences
 Good market skills
 Enhanced research and development
 Appropriate organize structure
 Good finance management
 Innovations
 Advance technology

Weakness:
Currently NFL is operating with is full capabilities and the company’s sale manager does not
think that there is any internal weakness in the organization.

Opportunities:
 Expanding into foreign business
 Expansion of core business
 Entering related business

Threats:
 New entrants
 Existing Brands like Shan, Dewan foods, Knoor, maggi etc.

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Profile report on: NATIONAL FOODS LIMITED

 No barriers on entry
 New cheaper substitute in the company
 Fixed quota system on the company’s imports
 Natural disaster
 External changes (govt, policies, taxes, steel, and prices etc.)

Competitor Analysis
 Identifying the organization’s competitors
 Determining competitor’s goals and objectives
 Identifying competitors’ strategies and tactics
 Assessment of competitors’ strengths and weaknesses
 Estimating competitors’ reactivity/hostility
 Determine which competitors to attack the biggest competitor of National foods are
Shaan foods. Every year, NAF spends large amounts of capital in researches to analyze
its competitor’s strengths and weaknesses.

Porter's Five Forces Model

Porter's Five Forces is a business analysis model that helps to explain why different industries
are able to sustain different levels of profitability. The model was published in Michael E.
Porter's book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in
1980. The model is widely used to analyze the industry structure of a company as well as its
corporate strategy.  The forces are frequently used to measure competition intensity,
attractiveness and profitability of an industry or market. These forces are:

1. Competition in the industry;

2. Potential of new entrants into the industry;

3. Power of suppliers;

4. Power of customers;

5. Threat of substitute products.

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Profile report on: NATIONAL FOODS LIMITED

1. Competition in the Industry

The importance of this force is the number of competitors and their ability to threaten a
company. The larger the number of competitors, along with the number of equivalent products
and services they offer, the lesser the power of a company. Suppliers and buyers seek out a
company's competition if they are unable to receive a suitable deal. When competitive rivalry is
low, a company has greater power to do what it wants to do to achieve higher sales and profits.

 For our new product: We have many competitors in industry like Shan, Dewan foods,
& many others for our existing products & brands. But for our new product our
competitors will be Knoor, Maggi, Shan shoopy Noodles etc.

1. Potential of New Entrants into an Industry

A company's power is also affected by the force of new entrants into its market. The less time
and money it costs for a competitor to enter a company's market and be an effective competitor,
the more a company's position may be significantly weakened.

 For our new product: Although it is like a threat for us as a new entry of any company
into the market but as a unique brand name we have already generated our Goodwill in
the market but we have to work on our R&D to make the strategies like this that no one
can snatch our position or tastes easily.

2. Power of Suppliers
This force addresses how easily suppliers can drive up the price of goods and services. It is
affected by the number of suppliers of key aspects of a good or service, how unique these aspects
are, and how much it would cost a company to switch from one supplier to another. The fewer
the number of suppliers, and the more a company depends upon a supplier, the more power a
supplier holds.

 For our new product: National itself makes a team of its suppliers on good
remuneration so that the suppliers could not affect the prices of our products.

3. Power of Customers
This specifically deals with the ability customers have to drive prices down. It is affected by how
many buyers or customers a company has, how significant each customer is, and how much it
would cost a customer to switch from one company to another. The smaller and more powerful
a client base, the more power it holds.

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Profile report on: NATIONAL FOODS LIMITED

 For our new product: As National Foods Ltd. Has a unique name and good will in the
market & people are also attached with the other products of National so it will be easy
for us to introduce a new product on a cheaper price with a unique taste & flavors than
our competitors . So that’s how we will try to grab customers for our new National
Instant Noodles.
Threat of Substitutes
Competitor substitutes that can be used in place of a company's products or services pose a
threat. For example, if customers rely on a company to provide a tool or service that can be
substituted with another tool or service or by performing the task manually, and if this
substitution is fairly easy and of low cost, a company's power can be weakened.

 For our new product: National has made a strategy to provide its new product which is
National Instant Noodles on the cheaper price than its competitors with a different tasty
and unique flavors. So that’s how National can overcome its threats by proper working
on its R&D.

 Market Leaders: The market leaders of our new product which is ‘’National Instant
Noodles’’ is Shan shoopy noodles, Knoor, Maggi are the existing leaders of this product.
And we are introducing ourselves as a new leader of this product in the market.
 Chances For Success: As we look forward towards the chances of success is that we
have already a good brand image on which people trust on our products & our quality as
well as our taste so if we are going to introduce a new product people will surely taste it
or like it and can shift our product into success.
 New Market Segment: we are going to explore the demographic, Geographic,
psychographic and Behavioral segment of Pakistan and as well as abroad for our new
product.

CORPORATE LOGO

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Profile report on: NATIONAL FOODS LIMITED

For over 40 years, we’ve been known as the one brand women all over Pakistan count on, but
just like people grow and change, we’re growing too. And now it’s time for a change.

Every year we’re growing bigger, brighter, more global, and our NFL spirit of adventure –
which has been the energy behind every new and innovative product – is now the encouragement
behind our new logo. The new Pakistani homemaker is feisty and vibrant and our new image is
helping her feel just as we have generations of food lovers feel – completely at home.

B P rand illars

White is the colour of ‘’PURITY’’

Purity is our first value. Purity of thought and of action.

Purity as an uncompromising standard.
Purity as a way of life.

The colour 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 37 years.

The colour 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.

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Profile report on: NATIONAL FOODS LIMITED

A belief in our Heritage is the strong foundation on which our business continues to grow.

Purple, a colour 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 & for us brightness means ‘’INNOVATION’’

Innovation is a key NFL Value.

Innovation drives our ability to remain contemporary in response to our consumers needs.

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