INTERNAL ANALYSIS 1

Marketing Management
Internal/Company Analysis
Company: National Foods
Submitted by: Aimen Gardezi
Muhammad Faiq Imran
Rabeea Umair
Rameen Naved
Zahra Anis
Submitted to: Ma’am Shama Razi
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Table of Contents

Organization’s History......................................................................................................3

Product Offerings....................................................................................................................................3
Performance.............................................................................................................................................3
Current status...........................................................................................................................................3
SWOT Analysis..................................................................................................................3

Strengths..................................................................................................................................................3
Weaknesses.............................................................................................................................................3
Opportunities...........................................................................................................................................3
Threats.....................................................................................................................................................3
Strategic & Organizational Issues....................................................................................3

Why are these most critical issues...........................................................................................................3

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Organization’s History
Established in 1970, National Foods Limited is a multinational food corporation based in
Pakistan. It began as a spice business and is today Pakistan's largest manufacturer of food items.
National Foods DMCC, Hillwood Cheeses, National Foods Pakistan (UK) Limited, and
Breathaway Food Caterers (Pvt.) Limited are some of its subsidiaries. They developed into a top
producer of food in 13 categories, with 250 different items. To guarantee that their consumers
obtain the best products, they also hold ISO 9001, ISO 18001, ISO 22000, and HACCP
certifications along with SAP Business Technologies.
National Foods has changed our cooking and shopping experiences as well as our
attitudes on health, hygiene, food, waste, choice, and consumption as a result of shifting eating
patterns brought on by technology in the kitchen or globalization and migration.
Additionally, they dominate the ketchup sector, making it their best-selling brand overall.
Compared to other ketchup products, National Ketchup is richer and tastier since it contains the
goodness of fresh tomatoes. They provide "Tomato ketchup" and "Chili garlic sauce" as ketchup
products. According to a survey by the company, 70% of ketchup buyers preferred National Chili
Garlic Sauce. Both flavors of ketchup are made using high-quality ingredients that don't contain
any artificial flavors. Ketchup users can utilize the sauce in a variety of meals to expand their
palates.

Product Offerings
As the company with the largest market share in Pakistan's food industry, National Foods
offers a wide range of products, which enables it to continue operating even during economic
downturns. The following is a list of their goods and services:
• Made-Easy
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Made easy is National's customer-focused website, which enables customers to

view several recipes provided by National Foods for easy cooking.
• National Recipe Mix
1. Sabzi Recipe Mix
2. Korma Recipe Mix
3. Haleem Recipe Mix
4. Fish Recipe Mix
5. Tikka Boti Recipe mix
6. Karahi Gosht Recipe Mix
7. Riwayati Salan Recipe Mix
8. Achar Gost Recipe Mix
9. Sindhi Biryani Recipe Mix
10. Shami Kabab
11. Seekh Kabab Recipe Mix
12. Salan Masa[a Recipe Mix
13. Korma Recipe Mix
14. Quick Cook Haleem
15. Keema Recipe Mix
16. Pulao Recipe Mix
17. Paya Recipe Mix
18. Curry Powder Recipe Mix
19. Murgfui Recipe Mix
20. Meat Tenderizer
21. Kofta Recipe Mix
22. Haleem Recipe Mix
23. Delhi Nihari Recipe Mix
24. Daigi Danedar Haleem Recipe Mix
25. Chicken Jalfrezi Recipe Mix
26. Chicken Tandouri Recipe Mix
27. Chicken Tikka Recipe Mix
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28. Broast Recipe Mix

29. Bihari Kabab Recipe Mix
30. Chapli Kabab Recipe Mix
31. Curry Powder Recipe Mix
32. Biryani Recipe Mix
33. Curry Powder Recipe Mix

• Ingredients

1. Turmeric Powder
2. Chat Masala
3. Garam Masala
4. Chilli Powder
5. Ginger Powder
6. Coriander Powder
7. Cumin Seeds
8. Kasuri Methi
9. Black Pepper Powder
10. Garlic Powder

• National Ketchup

1. Tomato Ketchup
2. Chilli Garlic Sauce
3. Tomato Ketchup bottled

• National Salt

1. National Iodized Salt

2. National Refined Salt
3. National Himalaya pink Salt

• National Pickles
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1. Hyderabadi mixed pickle

2. Mixed pickle
3. Crushed pickle
4. Mango pickle

• Mayonnaise

1. National Garlic mayo

2. National Classic mayo

• Snacks

1. XOXO Mirchi Punch

2. KRUNCH Lemon Chilli
3. HOOPS Sriracha Mirchi Maza

4. KRUNCH Achari Chakar

5. KRUNCH Red Chilli

6. XOXO Ketchup Surf

7. YOLO Sizzling Chicken

8. HOOPS BBQ Drama

9. XOXO Say Cheese

10. YOLO Salt Mania

11. YOLO Chilli Fiesta

• Desserts
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1. Firni Mix
2. Pistachio Kheer Mix
3. KheerMix

• Jam and Jellies

1. Strawberry Jam
2. Diet Orange Marmalade Jam
3. Apple Jam
4. Marmalade Orange
5. Diet Apple
6. Mixed Fruit Jams
7. Pineapple Jam
8. Mango Jam
9. Marmelenda Orange
10. Strawberry Jam
11. Mango Jam
12. Apple Jam
13. Pineapple Jam
14. Mixed Fruit Jam
15. Apple Jelly
16. Mixed Fruit Jam
17. Mango Jam
18. Apple Jam
19. Apple Jelly
20. Pineapple Jam

• Custards

1. Banana Custards
2. Vanilla Custards
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3. Mango Custards
4. Strawberry Custards

• Chutneys

1. Coriander Chutney
2. Plum Chutney
3. Mango Chuttni
4. fresh mint-chutney
5. Tamarind Chutney

• Sauces

1. Red Chilli Sauce

2. Green Chilli Sauce
3. Imli Sauce
4. Imli Sauce
5. Chilli Sauce
6. Soy Sauce
7. White Vinegar
8. Ginger Paste
9. Ginger Garlic Paste
10. Garlic Paste

• Seaso:nings

1. National Chat Masala

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Performance
Over the years, the business has consistently expanded. However, because the company is
in the FMCG sector, it is challenging to boost selling prices; as a result, revenues increased only
somewhat. The economic and business environment caused National Foods to see its lowest
growth in 2019, nonetheless, following the election of the new government. Domestic
consumption fell and production costs rose as a result of rising inflation rates and falling
disposable incomes. However, the business did well in 2020 as domestic sales grew as a result of
brand loyalty and promotions, while exports were competitive globally as a result of currency
devaluation.
Rising competition
With a global presence in roughly 40 countries, National Foods Limited has established
itself as the holder of the market-leader position in 6 categories. The brand's ketchup, which
comprises National Tomato Ketchup and National Chilli Garlic Ketchup, is believed to be worth
Rs. 7 billion and has the greatest market share in Pakistan.
Although there are many more ketchup brands in Pakistan, Shangrila and Knorr ketchups
are the most popular ones after National Ketchup. National Foods Limited was able to establish
its place in the market by providing high-quality goods at competitive costs, engaging in ongoing
research and innovation, and concentrating on developing, delivering, and articulating
exceptional customer value. However, as was previously indicated, numerous firms have over
the years entered the Pakistani market. As a result, there is now more competition; in particular,
Shangrila Foods, which has stepped up to offer incentives and discounts, is posing a serious
threat to the corporation. Additionally, as all ketchup brands primarily emphasize product
functionality, National Foods must stand out from its rivals in order to preserve its market
position.
Consumer Insights
Mothers between the ages of 20 and 35 make up the majority of the National Ketchup
audience, and children, who account for 50% of consumption, have an impact on their choice.
Three factors—the growing trend of ketchup-eating snacks, fussy eating in children, and moms'
hectic schedules—are driving higher demand for ketchup.
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Mothers are reported to be frugal, time-constrained, and their dependence on online

media for decision-making has grown, according to studies. They commonly rely on video
entertainment to keep their kids occupied because they are juggling other obligations and lack
the time to watch over them all the time. They also want to make snacks and meals enticing for
their young finicky eaters.
National Ketchup Factory
The company worked to improve the brand's reputation through its digitally managed
branded content campaign, National Foods Factory, even though National Foods ketchup already
has the largest market share in Pakistan. By creating distinct differentiation on its product,
ketchup, the company was able to successfully maintain its market-leader position. For the
program's primary target audience—children—learning was supposed to be fun and engaging.
The programme was hosted by kids for kids with the goal of promoting learning while having
fun—exactly how National Foods ketchup makes eating food enjoyable. The show was promoted
on numerous platforms to increase awareness, and the episodes were posted on YouTube because
parents make up the majority of its audience.

Current status
The company's sales climbed by 125% as a result of this initiative, and between 2020 and
2021, its market share increased by 3.4%. Additionally, the company's overall brand image,
brand loyalty, and brand recognition all improved. The company saw growth in its YouTube
community of 58%, interaction rate of 51%, which is higher than the industry average, and rate
of engagement on Facebook of 57%. Overall, it can be argued that National Foods was able to
establish a brand experience that enhanced its relationship with its consumers and therefore
achieve both financial and marketing success.

SWOT Analysis
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Strengths
Credibility:
In Pakistan, National Foods has a respectable reputation. They have a solid brand name
recognition in addition to having top-notch manufacturing and marketing facilities. Furthermore,
National Foods holds 49.2% of the market share in the category of ketchup, according to the
Pakistani Competition Commission.
Product Line:
With a product line that includes ketchup, spices (Masala), custards, and other items,
National Foods has one of the broadest product portfolios. This gives them an advantage over
rivals that focus on a select group of clients and limit the number of products they offer.
Good financial management:
National Foods is one of the businesses whose net income has never experienced a loss.
Even during Covid-19, their profits initially decreased, but they were still able to maintain a
profit margin of 29% in 2020 and 28% in 2021. In 2020, the National Ketchup Factory
programme contributed to a 125% rise in sales. They have an advantage over their rivals thanks
to the efficient administration of their funds, which they may use to fund future business
expansion and development initiatives.

Weaknesses
According to the report, the most of National Pakistan's manufacturing facilities are
functioning at full capacity, which suggests that the business will not be able to keep up with the
rising demand for their products. As they expand into foreign markets and demand better
facilities and more resources to meet demand from both current and new markets, this would
have a deeper influence on them in the years to come.

Opportunities
National Pakistan has effectively seized the Pakistani food business, particularly the
ketchup sector. The company has the opportunity to investigate new markets, such as those in
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Europe and the Middle East. They already have some of their items in these areas, but they can
add more in accordance with local demand and make money from those markets by doing so.

Threats
Because there are no entry barriers in this industry, new competitors are constantly
entering the market, posing a challenge to National Foods. Given the generally cheap cost of
production involved with the food industry, it is relatively simpler to enter. Additionally, the cost
of the fuel machinery that the company imports for its manufacturing would rise as a result of
higher import taxes, raising their production costs and temporarily reducing their earnings.

Strategic & Organizational Issues

Capacity management
National foods don’t use the just in time capacity management, and because most of the
inventory is perishable it leads to overcapacity, and wastage. They fail to have a proper capacity
management unit, as the raw inventory has a storage cost. Because Nationals suppliers are an
array of farmers from various areas they can use just in time as they don’t have a single supplier.
Inventory management
National Pakistan does not have the updated ERP (enterprise resource planning) it
manages the company data regarding products from supply chain to manufacturing and
distribution, the track is kept and updated at every unit and RFID (radio frequency identification)
it uses the electro-magnetic field to read the tags on the production units. Like this, products are
tracked by electronic batch numbers. They are hence unable to keep track of their manufactured
products.
Female Workforce Participation
By analyzing the annual report of National Foods, we found that the ratio of female
employees was quite less than that of male employees which means the company is losing a lot
of talent.
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Why are these most critical issues

If National foods don’t keep a track of their inventory this will increase overhead cost in
the form of storage cost and inventory wastage because National foods inventory consists of
perishable items. Storage cost will increase because the inventory will start piling up and they
will need to expand the capacity which in turn will increase cost. Moreover, as the products of
national foods are perishable so they require extra care as they expire quickly if not handled
properly, so chances of wastage are high if all inventory is not sold within certain time period.
Lastly, the ratio of female workforce is low. When the ratio of female workforce is quite lower
than male employees there is a possibility of discrimination in the working environment which
will result in lower productivity by female employees and they might end up leaving the job
which in turn will result in higher cost as new employees will be hired in place of them.