National Food Marketing Report Essay

Pakistan is known for spice in the world, as it has brought several sub continental taste from India after independence. National Foods is the leading sub continental recipe masala company of Pakistan with distinct market share as compare to the competitors. 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 were, to make food that is hygienic, reduce time spent in the kitchen by women, foster health and contribute towards personal attractiveness, so that people who use our products would be able to experience a more rewarding life-style. This was long before the phrase ‘Corporate Mission’ had even been invented. However, founder’s philosophy remains unchanged over time. Even if their language – and the notion of only women doing the housework – have become outdated, in this age of rapidly changing lifestyles, fuelled by the rampant development of technology; consumers are compelled to alter their eating habits. National Foods responds to this challenge of developing innovative food products based on convenience and quick preparation in line with modern lifestyles and yet retains traditional values through its diverse collection of food products. In a history that now crosses three decades, National Foods’ success has been influenced by the major events of the day – economic boom, depression, wars, changing consumer lifestyles and technological advancements. 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. COMPANY PHILOSOPHY National Foods must focus on customer’s needs and serve them with quality products at affordable prices at their doorsteps. Our products must be pure and conform to international standards. Our research must continuously produce new adventurous products scientifically tested, hygienically produced in safe and attractive packaging. We must create environment in our offices and factories where talents are groomed and have opportunity to advance in their careers. We must prove to be recognized as good corporate citizens, support good causes-charity and bear fair share of taxes. Reserves must be built, new factories created, sound profits made and fair dividend paid to our stock holders through building a reliable brand. National Foods Ltd. must get itself recognized as leader in Pakistan and abroad. With the help of almighty God, the company can achieve its targets in years to come. VISION STATEMENT The vision of National Foods Ltd. is â€Å"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. † BUSINESS PRACTICES NFL believes in conducting its operations with strong ethical and moral standards. NFLs statement of code of conduct & business practices aims to provide guidance on carrying out its business related decisions and activities. We wish to achieve excellence in all spheres of our operations for which code of conduct form the basis. Any party entering any form of contract with NFL is bound to comply with the given guidelines. NFLs statement of code of conduct & business practices has the following seven guidelines: 1. Unfair Means: Any use of bribery, kickbacks or any form of payment in cash/kind to obtain business related or otherwise gainful benefit for the company is strictly prohibited. Excessive business gifts and entertainment also hold the same meaning and NFL does not approve of such payments. 2. Respect and Integrity: NFL believes in giving respect to individuals. We aim to operate in a manner that discourages discrimination, harassment and/or influence. Discrimination refers to favoritism based on a particular aspect of an individual personality. 3. Conflict of Interest: NFL prohibits actions that are in conflict with the company business interests. This may include but is not limited to providing assistance to the competition or holding ownership interests in a customer, supplier, distributor or competitor and making personal gains at company expense. 4. Confidentiality: NFL believes in confidentiality of information related to company business activities. The company expects employees not to disclose or divulge by any means the confidential and commercially sensitive information except to the authoritative personnel requiring it. 5. Statutory Compliance: NFL believes in providing total support and cooperation to all the governmental and regulatory bodies irrespective of the extent of prevalent enforcement. 6. Financial Integrity: NFL believes in complete compliance with the accepted accounting rules and procedures. This includes but is not limited to Transparency: NFL discourages any illegal activity for the purpose of any benefit to the company or others. All information supplied to the stake holders and/or auditors must be authentic & transparent and Disclosure: All transactions must be fully disclosed and must be for the purpose stated for. 7. Health, Safety and Community Responsibility: NFL is fully committed to safety, health and responsibility towards environment and community. All activities of NFL must portray responsibility towards the community and nation as a whole. NFL seeks to employ procedures that are safe, healthy and environment friendly. SITUATIONAL ANALYSIS This year brought a series of challenges and transformation for the Sales Team. As the magnitude of the socio-political upheavals increased in the country, the Sales Team was not only determined to face all the adversities, in the face of the law and order situation, but also introduce valuable changes which would be favorable for the overall growth and development of the company. In spite of the prevailing conditions of strikes, shutter downs and political turmoil, the Sales Team delivered its targets. In certain key categories like recipe and salt, we even over delivered. These categories have a significant impact in volume growth and bottom line as well. The Channel Specific approach implemented is beginning to yield results, where the Sales Team capitalized on the market sales potential in areas of Public Account, Local Modern Trade, International Modern Trade, Food Service Division, Special Category and General Trade. Sales growth in Public Accounts (USC-CSD) has more than doubled this year. In Special Category Management (SCM), sales of salt was at an all time high. The 2013 environment was once again challenging on account of deteriorating law and order situation, high inflation, counterfeits and energy shortages. However, in the wake of such challenges, we delivered 20% sales growth (Volume 15%) with an improvement in trading operating margin and EPS growth thereby demonstrating the value of strong alignment of our people behind our strategic priority to become Rs. 50bn business by 2020. Strong presence in international markets is at the core of our vision statement and in line with our aspiration we established a subsidiary in Dubai NFL – DMCC to strengthen our export operations and plan to set up more subsidiaries in Europe and North America soon. The sustained business growth that we have evidenced in National Foods as well as strategic alignment provides framework for accelerated innovation, increased engagement with consumers and enhanced operational and financial capabilities. This will enable us to remain fit to win in more intense environment in future. Pakistan is the part of sub-continent, which is known for the high spicy foods and National Foods is the leading recipe masala of the country. But National Foods faced tough competition from the founder of the recipe masalas in the country that is Shan Foods’ Recipe Masalas. National Foods has different food categories and in each category they faced different competitors. National Foods started their operations with Jam, Jelly, Marmalades and Pickles and became a major competitor to Michelle’s and Ahmed Foods. National Foods are perceived as Pioneer in Ketchups and Sauces by competing with Shezan and now Shangrilla too. Following is the SWOT Analysis and Matrix as per National Food’s Strategy Formulation: Strengths: Cultural Image Developer Largest Food Exporter High Advertising Budget International Recognition. Weakness: High Pricing Strategy Limited Products Conventional Packing Stuck with Tradition Opportunities: High Food Entertainment Fond to International Tastes Multi-Cultural Lifestyle Technological Communication SO Strategy National Foods should introduced International Recipes WO Strategy Associate National Food’s Brands with Interactive Social Media Threats: Increasing Dine-in Hangout Low Priced Masala Brands Ready-to-Eat Food Availability Chef’s TV Demonstrations ST Strategy Sponsored the Cookery Shows on Leading Food TV Channels in Pakistan WT Strategy. Cobranding the National Foods with Leading Fast Food Chains for building association Proposed and Designed by Afnan Khan OLD VERSUS NEW BRAND LOGO OLD LOGO 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. NEW LOGO At NFL, freshness is what keeps us going. We keep life updated with new recipes, new products, and now we’ve got ourselves a Transformed logo. As with everything we do, we took a careful look at what we had, kept the best of the past, and introduced elements that were exciting, appealing, and yet always true to our soul. We’re still caring, optimistic, and reliable and now we’re livelier than ever before! MARKETING MIX Product Categories National Foods Limited has Fourteen Product Categories: 1. Chinese 2. Desserts 3. Health foods 4. Jams 5. Ketchups 6. Pickles 7. Raj masala National Food’s Recipe Masalas are the high revenue generated product, competing with Shan Foods shoulder by shoulder. National Foods launched Rivaaj Pastes in last decade and received acclaimed response from the market by having a competitive advantage in product line. National Foods’ Chinese Recipes are pressured by the Knorr’s Chinese Recipes and failed to receive estimated targets. National Foods’ Ketchups are the followers in the market despite of being founder in the ketchup industry because of Shangrilla’s Chinese flavored ketchups. National Foods’ another product category of Pickles are the second most sales generated product and successfully beating the competing brands of Ahmed Foods and Shangrilla. National Foods launched Fruitily instant drinks around four years back but failed to receive the customer’s response because of mismanaged distribution and high advertising of competing brand of Tang Fruit Juices. Product Growth as per National Foods Annual Report 2013: Recipe Mix: National Recipes sales grew by 25. 2% further establishing its market leadership. Gross margin improved, thereby further strengthening the financial health of this important category. The National Recipe Princess contest was conducted in fifty colleges across six cities in Pakistan targeting college going female students. The Karachi Special launch was a laser focused activity to cater to Karachi by launching the recipe mixes keeping in mind the Karachi taste palette. Ketchup: The Sauces Category recorded star performance of 39. 6% growth underpinned by highly successful consumer offering of Ketchup and Chat Masala Combo Pack during peak seasonal period of Ramazan. Gross margin also improved significantly in this category. In addition to well-planned and tightly orchestrated advertising and promotional campaign, penetration, availability and visibility provided the brand fuel for growth to register impressive growth. Fruitily: Despite strong competitive environment in this category, Fruitily recorded 5. 6% growth, gained market share with noticeable improvement in Gross margin. As this is new addition to National Foods portfolio, we will continue to invest in this category to accelerate growth for the future. Salt: Sales grew by 26. 5% with Gross margin improving significantly thereby delivering healthy bottom line. This category has significant potential on health platform as it serves the human body’s requirement for Iodine. Pickles: The category grew by 18%, despite stiff competition. However, Gross margin was diluted on account of higher material cost as we did not pass on inflationary pressure to consumers. The manufacturing process has been redesigned to fully exploit the potential of automation and further upgrade the safety standards. Pricing Strategy National Foods launched their brands with penetrating marketing strategies especially for Masala Recipes, Pickles, Jams but found to be involved in skimming strategy for their brand Rivaaj. National Foods’ Masala Recipes are following the same pricing of Shan Recipes Masalas, but after the recent launching of Mehran Recipe Masalas and Nice Recipe Masalas at high priced strategy, National Foods are counted as on the skimming pricing. As National Foods are following the international quality standards with high marketing budgeting, they compel to be on their well settled prices instead of getting down, but to tackle the competition raised by Mehran Recipe Masalas and Nice Recipe Masalas, National Foods introduced Sachet at half price. Distributional Sales Force The National Foods sales team has also made a significant development toward rural penetration and coverage through a dedicated Rural Development Force (RDF). RDF has extended its operations up to 370 uncovered rural settlements and expanded its distribution to more than 4,000 outlets. To improve our distribution operations in Balochistan, they have appointed Muller and Phipps (M&P), which is expected to enhance our sales performance in this geography. They have also taken initiatives to deploy IT solutions to maximize the benefit of information management in sales. A new software was implemented across Pakistan with key distributors to capture information on real time basis that will assist NFL to take quick action, provide analysis and assist in decision making. Promotional Activities National Foods is pioneer in developing state of the art promotional ideas in the food industry of Pakistan. Due to extra ordinary creative marketing and advertising campaigns, National Foods is perceived on the priority level as compare to their direct competitor i. e. Shan Foods in recipe masalas. Following are the leading marketing and advertising campaign: Rang Bharti Jao National Recipes celebrated its vivid persona with a two minute TVC, bursting with colors, emotions and sensorial shots of rich home-cooked food. In the background, the majestic voice of Tina Sani singing â€Å"Rang Bharti Jao† added to the surreal delicacy of the video. The â€Å"Rang Bharti Jao† campaign was a great success, as it won over the hearts of consumers due to its emotional appeal, and impressed the jury at the PAS awards. The amazing response led to National Recipe acquiring the Best Campaign Award in the Culinary Category. Karachi Special Launch After National Recipe’s great success, the Marketing Team was set out to cater to Karachi by launching recipe mixes especially made keeping in mind Karachi taste palettes. These recipe mixes have five different variants that are fierier and more flavourful to accommodate and satisfy the bold taste buds of Karachiites. Campaigning for these special recipe mixes was also in full throttle; with a TVC, hoardings and a massive BTL campaign, where the NFL float would go to different apartments and cook for the people there (trial activity). Moreover, Chef Saadat in support of National Foods would go to the float and cook for consumers all across Karachi. All this information was shared on our Facebook page for added hype. The Karachi Special Launch was a great stepping-stone for the brand’s aspirations of having long-term National Recipe loyalists in Karachi. National Ketchup Campaign National Ketchup experienced a huge boost in sales due to creative campaigns that coined the product as 100% tomatoes, making it synonymous with â€Å"real tomatoes†. Consumers highly appreciated the pre-emptive organic link to freshness and made the campaign, which ran on ATL and POS, very effective. The campaign also supported Ramadan season, which provided added exposure. National Recipe Princess Hundreds of college students were given a chance once again by National Foods to showcase their culinary skills. The National Recipe Princess contest was conducted in fifty colleges across six cities in Pakistan, with the aim of searching talented young girls who have a flair for cooking to compete for the title of Recipe Princess. This activation was highly successful as electronic media and digital media (Facebook page) gave it a huge boost. College students could keep track of the competition through photos, maps of the contest route, and group discussions and comments, resulting in colossal exposure of over a million views of the competition nationwide. Celebrity guest judges were also invited to the competitions for added hype and brand publicity creating the ideal recipe for success! National Pickles Campaign The attempt to reinvent the brand image of National Pickles proved to be a great success. The aim was to reposition it as a happening brand with an added zing, along with highlighting the pure, delicious and rich ingredients that make National Pickles the best. From the hummable tune to mouth-watering food shots and sensational ingredient shots, the campaign spoke to audiences of all ages, and increased the number of National Pickles fans in no time. National Ka Pakistan Pakistan’s culinary diversity and vivid culture are its joy and pride. National Foods sent out television’s renowned Chef Saadat on an exciting journey to discover the culinary gems hidden in the country’s nooks and crannies. Being the first ever attempt by a food company to create exciting episodic content that reflects the rich fusion of tradition and taste, this series was an attempt to showcase a safer and softer image of Pakistan along with highlighting Pakistan’s unparalleled love for food. The episodes were aired on 9 channels and were heavily supported by digital media as well. The show attained top ten ratings on news and entertainment channels, making it incredibly popular. National Ka Pakistan also bagged the prestigious Passion for Pakistan Award in the PAS awards 2012, triggering overwhelming success. Taste Of Pakistan National launched ‘Taste of Pakistan’, a unique cookbook that captured Chef Saadat’s journey from ‘National ka Pakistan’, and also celebrated Pakistan’s wonderful cuisine with 50 mouth-watering recipes from all across Pakistan. The response to this book was extremely positive because of the fact that the informative cookbook was not only a source for scrumptious recipes, but also a travel log, which helped consumers discover different regions of Pakistan and their delectable cuisines. Facebook Page Support By creating a presence on Facebook through the brand page, National Foods was able to interact with consumers on a much more consumer-friendly forum. It encouraged engagement as National Foods fans could now be updated about all the latest launches, BTL, contests, recipes, amongst other activities. Likes skyrocketed from a mere 15,000 to 60,000 within only eight months which resulted in an increase in the National Foods fan following, while setting sails to rising success for the brand. One-Minute Recipes In the fast-paced world of today’s times, people are always looking for quick solutions to everything. Taking the growing digital users as a base, National Foods launched the first ever one-minute video recipe cards in Pakistan. These one-minute videos were the quickest way to view a recipe with ease, and therefore, they gained a great deal of popularity, especially among the younger audience. The videos are now available on Google Play for Android cell-phone users too. To date, these videos have been viewed more than 55,000 times and the application software has been downloaded more than 6,000 times, thereby demonstrating its success. NATIONAL FOODS AS LEADING EXPORTER BThe wide range of National Foods products enjoys unparalleled acclaim across the world as we believe in providing nothing but the best. National Foods products are famous globally for their freshness, taste, hygiene and value for money. Providing you the exotic taste of Pakistan, National Foods products are distributed in over 35 countries in 5 continents, through our strategic partners. And with our continuous success, we are rapidly making inroads into new markets worldwide. NATIONAL FOODS IN COMMUNITY Commitment to CSR has been a part of the NFL strategy since its inception. Different initiatives reflecting our values are undertaken to give back to the society that has supported our business throughout the years. At NFL, we believe that CSR starts with providing the highest quality of products and services at the least cost and with the least environmental impact. From this foundation, our CSR aspirations continue to grow, incorporating processes and activities that aim to strengthen society and ensure sustainable social delivery. Sustainability underlines the foundation for NFL’s business endeavors, where we especially engage in strategic social investments, working to empower and uplift communities. The CSR Mission of National Foods is â€Å"Our CSR commitments must reflect all facets of our corporate personality – NFL as a manufacturer, an employer, a consumer in itself and as an industry leader. We uphold these commitments through our values, policies and our practices. †