Principles of Marketing

Project:

Introduction of a New Product.

Submitted to:
Mr. Faheem Athar Haqqani.
Submitted By:
Waqas Anwar.
(MBA-08-014)

Saif-ur-Rehman
(MBA-08-035)

Tayyba Safeer.
(MBA-08-013)

Arooj Nasir.
(MBA-08-036)

Zilli Huma.
(MBA-08-041)

Department of Business Administration

University of Sargodha

1
National FOODS

2
 •
•
•_______

R ivaaj Cooking Pastes"

"

3
 fffi_ffi,_-_._._/0_
•
Chapter # 1
Executive Summary

Chapter # 2
Introduction

Chapter # 3
Exchange Process
Need, Want & Demand

Chapter # 4
Environmental Scanning/Monitoring
External Macro Environment
External Micro Environment
Internal Environment

Chapter # 5
The Consumer Market
Consumer Buying Decision Process
Physiological Factors

Chapter # 6
Market Segmentation
Positioning
Marketing Mix

4
 •
Chapter#1
•
12___34_5_66_7 •

The project is a basic requirement of MBA, a training programme, for thorough understanding
and implementation of different Marketing Strategies & concepts.
Under consideration project is all about National FOODS, Launching a new product under the
name of Rivaaj Cooking Pastes. A dynamic company focuses on customer's needs & wants.
This Project includes analysis of all marketing strategies used in launching a new product. It
includes Introduction, History, Exchange process, Environmental Scanning, Internal &
External Environmental factors, The Consumer Market, Market Segmentation, Targeting &
Positioning, and much more.
No vital factor has left un-touched. All the relevant details in this regard has been collected by
Primary & Secondary resources and these are enclosed in the project. We have used all our
resources and knowledge regarding to this project for its successful completion.
All the processes involved in for the Introduction of a new product including,
Exchange Process, Exchange Process, Need, Want & Demand, Environmental
Scanning/Monitoring, External Macro Environment, External Micro Environment, Internal
Environment, The Consumer Market, Marketing Mix, Physiological Factors, Market
Segmentation, Positioning, Consumer Buying Decision Process are elaborated upto our
knowledge.
We hope to get good market share of our Product Rivaaj Cooking Pastes and hoping to satisfy
needs and wants of our customers and will fulfill their expectations.

5
 Chapter#2
Introduction;

National Foods was founded in 1970 and started out as a Spice company. 3 decades later it
has diversified into a versatile Food Company with over 110 products and 165 and above
SKUs (Stock Keeping Unit) for the domestic market and over 100 different products for the
international markets.

The vision to see National Foods as a professionally managed Human Resource company,

set more then 8 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 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.
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, seasonal holidays and of course - everyday life.

6
 Chapter#3
Exchange process:

Exchange is an act of obtaining a desired object from someone by offering something in return.
Normally we think of money as the medium of exchange. We give up money to get the goods
and services we want.
Five conditions must be satisfied for any kind of exchange to take place:

•_______ fffi Customers

Need/want
Value
Communication
Voluntarily
Object

Marketer: NATIONAL FOODS playing role as marketer

•
Markets: customer or consumer is our markets
•

Values:
•
National food profit, customer satisfaction

7
 Communication:
•
Strong marketing plan and advertising by electronic media PTV, GEO, ATV;
newspapers JANG, EXPRESS; pamphlets etc.

Concept of Need wants and demand

Need:

The most basic concept underling marketing is that of human needs. Human needs are states of

felt deprivation. In the case of RIVAAJ PASTES, which is the product launched by us,

relates to the hunger of human beings. The need for hunger is included in the basic elements
which are essential to maintain good taste. A psychologist Abraham Maslow formulated a
hierarchy of needs in which He identified and placed needs according to other level of
importance. Our product falls under the basic needs/physiological needs. The need of food
comes along with the mankind. This is genetic need of human. Normally in Pakistan every
person likes to eat spices.

Maslow's Hierarchy of Needs

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

8
Wants:
Wants are the forms that human beings take as they are shaped by culture and
individual personality. In our society most of the people like spicy foods because it is the part
of our culture. In other countries like China, Japan, Korea commonly people dislike to eat
spicy foods because of their culture. Generally they don't use spices.

Demand:
Human wants that are backed by buying power. Our product RIVAAJ PASTE is
launched to meet the basic requirements of maintaining the taste. Elaborate, home cooked
meals are a daily tradition in Pakistani homes. Meals that call for hours of preparation in
chopping, peeling and grinding, frying onions and tomatoes. National has simplified this entire
process into three simple steps with the introduction of a complete recipe cooking paste,

RIVAAJ. Just add meat, cook and voila, enjoy some of Pakistan's most delicious cuisine. A
Rivaaj paste is mostly suitable in urban areas. Because in urban area people are adopting
techniques that prevent wastage of time and so they would go for this product in order to
prevent time with sustaining taste.

9
 Chapter #4
Environmental scanning/monitoring:

Is the process of:

Gathering information regarding a company's external environment
Analyzing it
Forecasting the impact of whatever trend the analysis suggests

1. Macro influence: (so called because they affect all firm) such as demographic
economic condition, culture, and laws.

2. Micro influence: (so called because they affect a particular firm) consist of suppliers,
marketing intermediaries. Micro influences, although external, are closely related to a
specific company.

External macro environment

The following external forces have considerable influence on any organization's marketing
opportunities and activities. Therefore they are micro environmental forces.
Demographic
Economic condition
Competition
Social and cultural forces
Political and legal forces
Technology

10
 Competition

Social and
Technology cultural forces

Company
marketing
program

Demo Political and

graphics legal forces

Economic
Condition

Demographic:
Is the characteristic of population, including such factors as size, distribution,
and growth. Because the people constitute markets, demographic are special interest to
marketing. In our culture mostly cooking is done by females. Category of females who
commonly give their job about cooking in houses. So our targets are females in the age group
of 15 to 40 who are involved in cooking activities.

Economic condition:
Market requires buying power as well as people. Who have the
purchasing power and willingness to use the purchasing power to satisfy their demand. The
economic environment is a significant force that affects the marketing activities of just about
any organization.
As economic conditions of our country are in use of proper terminology which is favorable for
the firms to earn profits, increase sales volume and capture the market with more income to

spend. NATIONAL FOODS is also working in this direction. This is the reason that it is

11
Competition:
A company's competitive environment obviously is a major influence on its marketing
programs. Firms generally face brand competition and substitute products. Skillful marketing

executives monitor all aspects of competitors. Our brand RIVAAJ PASTES faces

competition. The product RIVAAJ PASTE can overcome the competition by better

advertising and making good image of their product in the mind of customer/consumer.
Improving and maintaining the quality of the product can only do this.
Social and cultural forces:
The social and cultural forces are made up of institution and other forces
that effect a society's basic values, perception, preference and behaviors. People grow up in a

particular society that shapes their basic belief and values. NATIONAL FOODS are more

than a food company. Its products are not just edibles; they are part of the daily lives of
millions of people around the globe. NATIONAL FOODS's success is based on high

standards of performance. So in our society mostly cooking activities are done by females. So
first of all we have to keep in the mind the women comfort and their attitude toward our
product. We should also keep in mind the feelings of women about our product. We target
them as the buyer of our product. We should make the product which is less time consuming.
So that they can perform the other duties and make the cooking process more convenient and
easy for them.
12