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

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National FOODS

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 Product

“ Rivaaj Cooking Pastes”

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 Table Of Contents:

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

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 Chapter#1
Executive Summary
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.

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 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.

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 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:

National FOODS 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

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 • 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

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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.

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 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

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 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

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introducing RIVAAJ PASTES while it is already the manufacturer of SALTS,

KETCHUPS, and RAAJ MASALA etc, which are already going well in the market.

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.

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Political and legal forces:
Every company’s conduct is influenced by political and legal process. Marketing
efforts are also affected by level of government spending, the money supply and tax
legislation. As our government is on a program of poverty elimination. In pursuing this
program government is spending more in rural areas so that there income should increase. This
is supporting our product as more people would be in a position to buy more goods with a
better quality. Marketers of NATIONAL FOODS are well of the laws of the country.

Technology:
The company is in consumer industry, where as other areas, it is facing some
revolution, driven by new technology. At the same time, globally connected economic are
creating new challenges and opportunities for its products.

External macro environment:

Three additional environment forces are external to an organization and affect its
marketing activities.

1.Market:
The company management is trying to expand its market by increasing its sales volume
so, here we have raw information related to sales is as under:
Local sales: 106,304,014
Growth over last year: 24.68%
Export sales: 101,177,657
Growth over last year: 10.20%
Corporate growth over last year: 20.12%

2.Suppliers:
Suppliers play a very important role in the promotion of any company. In addition
business cannot sell their product without suppliers.

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Now a day NATIONAL FOODS is focusing on its company’s suppliers and the company
has a strong network of suppliers in different regions. the details related to its product supply is
as under:

1. SINDH
2. PUNJAB (Faisalabad, Sargodha, Rawalpindi, Gujranwala)
3. NWFP
4. BALOCHISTAN

3.Sources:

Through internet www.nfoods.com

Manager (Amjad Niaz) Islamabad office.

INTRENAL ENVIROMENT

1.COMPANY IMAGE:
National FOODS Company is going very well in the market and its product like
salts, ketchups, jams, Chinese snacks are very famous in the people.

2.LOCATION
Its head office is situated in Karachi but its sub offices in different regions, Lahore,
Multan and Islamabad. Where they are continuously offering the services to their customers.

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Different locations of the offices:

1. Karachi (Head Office)

2. Multan
3. Lahore
4. Islamabad

3.Research and development:

NATIONAL FOODS develops products in line with market potential through the
means of indigenous technology using R&D. and is an innovative, marketing and research
oriented company.

4.Human resources:

Company trying to improve more and more its market plan. Company Promote
professionalism at all levels through education, training and development for all human
resources. For this purpose company appoints new and experience member in their different
management areas.

Production facilities:

National Foods company is provides many facilities to its labor and other staff. So
that the production facilities can be improved by increasing the wages of its labor, and put the
new & modern plant of manufacturing. In National Company wages of labor are very
reasonable.

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 Chapter#5
The consumer market

►Geographic distribution:

i.The rural population:

Rural populations in Pakistan still people are not aware from their time consumption.
Frequently rural women like to use natural product in their food. They also believe that the
natural goods just maintain their health.

ii.Urban population:
Urban population will be a market share of RIVAAJ PASTES. Because in
urban areas income level of people is higher than the people of rural areas. In urban area
people are adopting techniques that prevent wastage of time and so they would go for this
product in order to prevent their time.

►Demographics:

Age:
People belonging to age groups (above 15) will use the product RIVAAJ PASTES at
the cooking time like lunch or dinner. But mostly aged people (55 to above) avoid to use spicy
foods. Because usually aged people are suffer form heart diseases and spicy foods are not
better thing for such people.

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Family life cycle:

Bachelors, young married, full nest I (married couple with children) would be one of the major
users of this product. Because it is easy to use it during the cooking process and also less time
consuming

Education:
Educated people will use RIVAAJ PASTES more frequently and preferably because

educated people are always health conscious. So RIVAAJ PASTES would be a product in
which level of ingredients are parallel and less time consuming.

Income:
Modern, high & middle income group would be the main users of the RIVAAJ
PASTES. Because the prices of RIVAAJ PASTES are very reasonable and affordable,
so middle income group could also easily purchase it locally and it is easily available at all
utility shops.

Race:
This product Rivaaj pastes cannot implement in this point.

Consumer buying decision process

Need:
With the product reference the need of the RIVAAJ is its special taste and parallel
ingredient level. It is need of usually working ladies who have not enough time to consume in
making launch and dinner. So according to the RIVAAJ mostly household ladies would

always prefer to buy the RIVAAJ PASTES.

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Evaluation of alternatives:
The main alternatives of RIVAAJ by NATIONAL FOODS are SHAN and
AHAMED Food.
Decision:
As consumer will decide to go on the shop, utility store and buy the RIVAAJ
PASTES. He will pay at a time to the shopkeeper by cash.
Post purchase:
After purchase if a consumer is not satisfied with the quality of RIVAAJ PASTES
then the company will collect the returned items by the customers and gives the warranty of
money back.

Social forces:
In urban culture of Pakistan the product RIVAAJ PASTES is very powerful in
effect. Mostly people (females group) prefer to use RIVAAJ PASTES during the cooking.

Because it is easy to use, In rural culture RIVAAJ is not in use. Reason is that the people
who are living in rural areas prefer to use natural shaped products.
Sub culture:
RIVAAJ PASTES are use in cooking process by those people who want to
distinguish them selves from the rest of income groups.

►Situational influences
Situational influences a Reference group:

The product RIVAAJ PASTES would be used by those who are considered as
average income group. In case of ladies the reference group can be her friend, mother or may
be neighbors. Because who can be as reference group in the influencing to use RIVAAJ
PASTE for cooking.

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►Physiological factors

Motivation:
A need that is sufficiently pressing to direct the person to seek satisfaction of the
need. So RIVAAJ PASTES will motivate its consumer through advertising, money back
guarantee, attractive packing, standard quality and affordable prices.

Perception:

Perception is the process of selecting, organizing and interpreting information inputs

to produce meaning. With the reference to RIVAAJ PASTES produced by NATIONAL

FOODS there is no difference temporary force associated with the immediate purchase
environment that effect behavior.

The time dimension:

RIVAAJ PASTE consumes less time in cooking and easy to use.

The surrounding:
The product RIVAAJ PASTES can be used in every season. But during
winter and mostly in MAH-E-RAMAZAN the uses of this product would become more
and more. Because of working ladies they always try to spend their less time on preparing
SEHRI and AFTARI.

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 Chapter#6
Marketing segmentation, targeting, and
positioning

MARKET SEGMENTATION
RIVAAJ PASTES are not made for the specific people or income class or not for
particular group. But according to the customer needs and markets segments RIVAAJ

PASTES are manufacture for all income and age groups.

POSITIONING OF RIVAAJ PASTES

In order to position a product in a market there are certain steps to be performed which
are discussed as below:

EVALUATION OF THE PRODUCT:

The first step necessary to be kept in mind is the evaluation of the product, which is
done by considering the following points:

1. INNOVATIVE:
“RIVAAJ PSATE” is an innovative product and people are always ready
to accept new and novel ideas. It is innovative in the sense that no such paste has ever
been manufactured that saves time and effort.

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2. DURABLE:
The product has a lifespan of maximum one and half year, and it is mentioned
on the packet

3. REASONABLE PRICE:
The price of each packet is Rs.22/- that is reasonable and affordable.

4. IMPRESSIVE PACKING:
The packing of the product is attractive and colorful. These pastes are available
in pouch shape packing & these are not harmful to human health. Packing will be in
various sizes e.g. Family size, Individual etc. It would be also in primary (Foil paper) as
well in secondary (in carton) to avoid from germs.

5. EASY USAGE:
Meals that call for hours of preparation in chopping, peeling and grinding,
Frying onions and tomatoes. RIVAAJ 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.

6. PRODUCT FEEDBACK:

We take pride in our product range at National Foods, so if there is anything

you wish to share with our team, let us know through this section.

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 7. COMPLAINTS:

We value our customers and consumers insights into our products, recipes and
general company profile. Let us know what bothers you or what negative experiences
you may have gone through by commenting through our complaint center.

8. HELP LINE:

Who said cooking was easy? If you're stuck or need guidance for improvement
in your daily chores, write to us through our Help Line.

SELECTION OF BRAND NAME:

The brand name selected for the product is RIVAAJ that means “custom”. And it is
feasible because later on in the future when more product lines will be added it will be
convenient enough to use this name with every product. The brand name has the following
features:

It is easy to pronounce.

It is easy to remember.

It is relevant to the products the company is producing.

It is not complicated or suspicious.

Many other products can be added to this product line as the name covers range of
products.

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SELECTION OF SLOGAN:

During the selection of a slogan for the product many different and interesting slogans were

made. But the slogan considered best for this product was KAL BHE YEHI HO
JAY! In order to encourage people to try a packet.

TARGET MARKET:

The target market for the product is not confined. Both males and females are capable of using
this product. Because people are adopting techniques that prevent wastage of time and so they
would go for this product in order to get rid of long procedure that is chopping, peeling and
grinding, Frying onions and tomatoes etc.

MARKETING MIX:
Marketing mix involves four points:

1. PRODUCT:
The product “RIVAAJ PASTE” is very unique product and has never
been introduced before. The purpose of the product is very attractive and different so in
the beginning it will capture a share of market.

2. PRICE:
The price of each packet is Rs.22/-. The reason behind such a low price is to
allow consumers to try it just once. And once they use the product they will feel the
convenience and then be forced to use it again and again.

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 3. Distribution:
The channel of distribution selected for this product is

Producer Distributors Retailer Consumer

This channel of distribution is selected on the basis of the company’s sales. And
this channel of distribution is considered best for this product. However there maybe
some changes in the future depending on how successful the product is and how mush
increase is there in its demand.

4. PROMOTION:
NATIONAL FOODS has pride in connecting with consumers by
bringing special offers, programs and entertainment. They promote their product by
strong marketing plan and advertising like electronic media, newspapers, pamphlets act.

TEST MARKETING:

In order to see the response of people our company has conducted the test marketing
strategy by hosting an advertisement in which one of our co-members took opinions,
suggestions and advices from different individuals, which proved very helpful for our research.

MONITORING OF POSITIONING:

In order to position the product the monitoring of positioning is the last but most vital
step and should be taken into serious consideration. There are many ways to monitor the
positioning some of which are discussed below.

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 1. Total Quality Management:
The first way to monitor the positioning of a product is through total quality
management, which involves the free hand over the employees that is the employees are
encouraged to give their suggestions, opinions and ideas regarding the quality and
enhancements of a product. Through this activity innovations take place.

2. Expertise Opinion:
During the positioning our expertise assisted us by giving their expert opinions.
Through this we learnt how to further improve the quality, packaging and branding of our
product and to overcome any sort of shortcomings of our product.

3. Questioners:
We distributed certain questionnaires from people in order to find out what their
preferences were and in order to forecast the success of our product.

POSITIONING WITH RESPECT TO PRICE AND QUALITY:

When we speak in terms of positioning then one very important thing, which is to
be kept in mind, is the price and quality. The price and quality should be such that once the
product steps outside the factory it is accepted by people and every individual is eager and
capable to try it. In case of “RIVAAJ PASTE” assurance of quality will be projected
through advertising and market penetration strategy will be emphasized to enter into the
market whereby we set initially lower price for the product and create demand in the
market and profit earning will be through large sales volume.

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POSITIONING WITH RESPECT TO COMPETITORS:

The major competitors of RIVAAJ PASTE by National foods are SHAN &

AHMAD FOODS. But we cannot call it competition because none of these companies have
ever introduced such PASTE so the competition seems to be not so strong. FAST

MOVING CONSUMER GOODS (FMCGS) plays a stiff competition in the market and
to get a break through this competition. FMCGS organizations are kept on innovating/
introducing new/ variety of things in the market, currently for our product there is no
competitor in the market. This is one of the reason that we have introduced “RIVAAJ

PASTES” at affordable price in the market other competitors may not be able to introduce
such product at this price.

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