nirala sweets final project report

[ ]NARALA SWEETS

A PROJECT OF ENTREPRENURE AND SMALL BUSINESS ON

“NIRALA SWEETS”

The Institute of Management Science, Lahore

[ ]NARALA SWEETS

PRESENTED TO:

SIR ABDUL QAYYUM QURESHI

PRESENTED BY:

Mr. Waleed Tayyab 111405

Mr. Muhammad Tayyab 103125

Mr. Muhammad Irfan 102507

Mr. Zohair Ahmad 091521

Mr. Ali Yazdani 113511


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ContentsACKNOWLEDGEMENT.......................................................................................5

PREFACE............................................................................................................5

Nirala Sweets.....................................................................................................6

History...............................................................................................................6

Vision.................................................................................................................6

Core Values.......................................................................................................7

Our team...........................................................................................................7

Nirala family......................................................................................................7

Business Portfolio..............................................................................................9

Companies.......................................................................................................10

Anmol Company...........................................................................................10

N Design.......................................................................................................10

N Restaurants...............................................................................................11

Nirala Canada Ltd.........................................................................................11

Nirala Dairy (Pvt) Ltd....................................................................................12

Nirala Snacks (Pvt) Ltd..................................................................................12

Nirala (Pvt) Ltd..............................................................................................13

Nirala (UK) Ltd..............................................................................................13

Strategic Structure..........................................................................................14

Structure of the Organization..........................................................................15

Managerial Hierarchy......................................................................................21

Hierarchy of Organization...............................................................................23

Motivation and Reward...................................................................................24

Departments...................................................................................................25

BCG Matrix......................................................................................................27


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4 Products of Organization..............................................................................29

FUTURE PLANS................................................................................................33

Five Forces.......................................................................................................33

Marketing Strategy..........................................................................................35

DESIGNINIG MARKETING STRATEGY...............................................................37

S.W.O.T Analysis..............................................................................................40

Strengths:.....................................................................................................40

Weaknesses:.................................................................................................40

Opportunities:..............................................................................................40

Threats:........................................................................................................41

Conclusion.......................................................................................................41

Recommendations..........................................................................................42

ACKNOWLEDGEMENTWe would like to pay our praises and humblest thanks to AL-MIGHTY


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ALLAH, the most Merciful and Beneficiate of all, who bestowed us with the

ability to complete this project. It gives us immense pleasure and honor to

extend our thanks to our kind & cooperative. ABDUL QAYYUM QURESHI

Faculty of Institute of Management Sciences, Lahore for his valuable advices

and suggestions throughout our semester, in order to perform well & up to

mark..

Finally, we pay regards of gratitude to our parents, as they and their prayers

for

Our success are always been a pillar of strength for us in our life.

PREFACEQuality without creativity is meaningless. As changes grow ever more

unpredictable creativity is rapidly becoming recognized a core management

skill.

Today’s business environment demands that manager’s posses a wide range of

knowledge skills and competencies, as well as sound understanding of

management process and function. Managers need to be able to make best use

of their time, talent and of other people to work with and through others to

achieve corporate objectives. They also need to demonstrate their ability not

merely to solve problems, but to transform them and design ways through

them.

This report concerns needs and changing needs and their satisfaction level,

which are the important function in every organization.


[ ]NARALA SWEETS

Nirala SweetsNirala Sweets has a complete range of over 150 delicacies to suit any taste. You can now choose from an assortment of delicious sweets ranging from traditional delights to novel and unique tastes. The essence of our products is inspired by 18th century royal banquets.Our saltish range is one of the best and one can have it with a cup of tea, coffee or a refreshing drink. An ideal snack prepared in natural oil to invigorate and provide you with utmost fulfillment. Our snacks range consists of Chips, Dal Masoor, Dal Safaid, Mongra, Namak Paray, Samosay (Potato and Chicken) and Sawaian.An integrated milk & milk powder processing plant has been set up at Tandlianwala, near Faisalabad, under the name of Nirala Dairy (PVT) Limited. Nirala Doodh, the UHT packaged milk of the Company was launched in June 2005 and is now the favourite brand in many households.Nirala offers sweet products in over 80 different types of packaging. Besides traditional paper and cardboard, we work with tin, wood, glass and handmade paper to give you the flexibility and choice in selecting the packaging that suits your mood, taste and theme.Send mithai to Pakistan from anywhere in the world!You can now send mithai, flowers & gifts to Pakistan from anywhere in the world. Whether you're in another city or in another part of the world, simply let us carry your emotions where you can't make it yourself! Click here to order mithai online.

History

Over half a century ago, the foundation of Nirala was laid in Lahore, Pakistan, with the commitment to provide people with delectable quality delights. The great journey started when Taj Din migrated from Amritsar, India, to Lahore and started a small breakfast shop in the inner city of Lahore in 1948. The passion for quality, distinctiveness and hard work set by our founder is the spirit we seek as our guiding principle.

Vision

Our vision is to make Nirala a global brand, a brand recognizable for its uniqueness and quality in ethnic food market all around the world. In this perspective we consider our self as an innovative and a pioneer company, continuously offering unique products and interesting service concepts that others haven’t even dreamt of.


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Core Values

The core values of our organization which we consider the Spirit of Nirala have not changed over the past half century. Those values and traditions which have made the brand Nirala a market leader for the past 65 years are:

Continuous Improvement Innovation Integrity Team work and Social Responsibility

Our team

Quality Assurance

Shop Operations

MIS

Value Added Services

Human Resource

Finance & Accounts

Administration

Design

Production

Stores & Procurement

Nirala family


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Over 50 years ago Taj Din, our founder introduced the best mithai the city of Lahore

has ever known. Today, Taj Din's family strives to bring you the best of those age-old recipes.

Taj Din:

Taj Din founded this business more than half a century ago. It was his vision and entrepreneurial spirit that made Nirala a strong brand name in the Mithai business. His special emphasis on 'nothing but the best' ensured that the customer always found the same superior quality whenever he experienced any product of Nirala Sweets.

Farooq Ahmad:

Taj Din's son Farooq Ahmad, the Chairman of the Group, has been gifted with his father's vision and entrepreneurial spirit in his blood. It was he who took the shop out from the congested Fleming Road in the old city of Lahore and relocated to the more central and accessible area of Jail Road. He also paid special emphasis on shop environment and packaging design, besides of course the product quality.

Faisal Farooq

Farooq Ahmad's eldest son, Faisal Farooq was made CEO of the business by his father in 1997, at the young age of just 23 years, when Farooq Ahmad fell unwell and could not devote full time and attention to the business. Faisal courageously took about the challenge of growing the family business. With a dynamic approach and an MBA,


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Faisal kept adding more and more shops across the country and today has added new businesses to the establishment including a large milk processing and packaging plant and snacks plant, besides VCS (software house).

Ahmer Farooq

Farooq Ahmad's younger son, Ahmer Farooq is a creative individual with an MBA and education in creative design from the UK. Besides heading the creative and communication side of the Group, Ahmer is actively involved in the Companies' day-to-day decision making.

Omar Farooq and Fahad Farooq

Farooq Ahmad's youngest sons, Omar and Fahad are twins and have completed their education. They have now joined Nirala, so they can add value to the business.

Business PortfolioThe business of Nirala Sweets, in just over half a century, has evolved into a Group of

Companies, consisting of various business divisions. It is heartening to see that from a single, small mithai shop in old Lahore in 1948, the Company now owns 20 shops in 6 cities of Pakistan, besides 2 in the UAE. The Group consists of businesses like dairy processing and packaging, snacks, restaurants, software house and more recently, automobiles.

Anmol Company N Design Nirala Canada Ltd. Nirala Dairy (Pvt) Ltd. Nirala (Pvt) Ltd. Nirala (UK) Ltd.


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Taj Trading LLC

The Nirala Group consists of ten companies operating in different market segments

Companies

Anmol Company

Anmol Company holds the exclusive franchise rights in Pakistan for Nirala Sweets &food products. Anmol Company is responsible for manufacturing, distributing and selling Nirala Sweets, which is undoubtedly the leading brand in the Mithai market in Pakistan. There is a wide range of products that the company has to offer. The brand has been built to this level over a period stretching beyond half a century. At the moment the Company has 39 shops; 37 in 9 cities of Pakistan and 2 abroad, in the UAE.

N Design


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Nirala cares for nature and values art. The group contributes in designing elements by offering a wide range of designing services that include multimedia presentations, web sites, outdoor and press advertisements, modernistic décor for supermarkets and retail outlets and outputs for print media. These services are rendered to sister concerns and to other leading companies and multinationals operating in telecommunication, banking, oil and gas, and textile sectors etc.

N Restaurants

N Restaurant is another entity of the Nirala Group of Companies. When Taj Din established a sought after breakfast joint in the busy Mewa Mandi of Lahore way back in1948, few would have imagined that more than 50 years later, his grandson will establish a classy restaurant in the busy and most posh locality of Lahore city, Defense Y Block. Ironically, the restaurant, by the name of Café Gowalmandi, is most famous today for the traditional breakfast served on weekends and all gazetted holidays. Having opened itsfirst branch in September 2004, a second branch was added, in the busy St. Mary’s Park(Alfalah Mini Golf) in the latter part of 2005.

Nirala Canada Ltd.


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The Company is being established to introduce Nirala Sweets and related products in the Canadian market. The core activity will include import of semi-finished products from Pakistan and to refine them at the semi kitchen established in Canada, before marketing the product at various stores. Semi kitchen will only be engaged in the refining of product or bringing them in marketable condition. Products will be marketed through a networkof retail outlets around big business markets in Canada, like Toronto, Montreal, Ottawa, Vancouver and Calgary. The registered office of the company is located in Vancouver, British Columbia.

Nirala Dairy (Pvt) Ltd.

An integrated milk & milk powder processing plant has been set up at Tandlianwala, near Faisalabad, under the name of Nirala Dairy (Private) Limited. Nirala Doodh, the UHT packaged milk of the Company was launched in June 2005 and is now the favouritebrand in many households. This is due to the strict quality measures that the Company religiously adheres to. Nirala Desi Ghee (Butter Oil) was launched earlier and is leading the market in its category due to is superior quality and taste. Many more products in the dairy range are being developed and will be launched shortly.

Nirala Snacks (Pvt) Ltd.


[ ]NARALA SWEETS

Nirala Snacks Pvt Ltd Our saltish range is one of the best and can be had with a cup of tea, coffee or a refreshing drink. An ideal snack prepared in natural oil to invigorate you and provide utmost fulfillment, our snacks range consists of Chips, Dal Masoor, Dal Safaid, Mongra, Namak Paray, Samosay (Potato and Chicken) and Sawaian, and are available across Pakistan from Nirala outlets as well as leading retail stores and supermarkets.

Nirala (Pvt) Ltd.

Nirala Private Limited is the custodian of the brand name Nirala. The brand is owned by this company and is a registered trade mark world over.

Nirala (UK) Ltd.


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For United Kingdom & European Union, Nirala UK Limited holds the exclusive franchise rights of the Nirala brand. Under the franchise, it can set up Nirala shops, manufacture, sell and market Nirala products in its domain. Although Nirala UKLimitedis yet to open its first shop in the region, it is aspiring to capture the hearts of many sweets lovers in the region.

Strategic Structure

9 All Nrala strategies are made by keeping in mind the mission statement of the organization, which clearly reflects the company’s objectives and goals.

9 After deciding their task/objectives, they start analyzing the outside environment to analyze weather their strategies are applicable or not.

9 If it is applicable then they start evaluating about opportunities and threats that they could face.

9 After analyzing internal factors, management starts working on allocating, analyzing organization resources.

9 When they allocate resources, they start finding specific areas where they look and point out their strengths.

9 Then they summarized all the internal and extrernal data and decide how to execute their strategies.

9 After having all the planning and collection of required data they start the execution of their plans and every single employee try its best to make it successful.

9 And at the end the management starts evaluating the results either they are satisfactory or not.


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Structure of the Organization

A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization's resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job titles, lines of authority, and relationships between departments.

The informal organization is the network, unrelated to the firm's formal authority structure, of social interactions among its employees. It is the personal and social relationships that arise spontaneously as people associate with one another in the work environment. The supervisor must realize that the informal organization affects the formal organization. The informal organizations can pressure group members to conform to the expectations of the informal group that conflict with those of the formal organization. This can result in the generation of false information or rumors and resistance to change desired by management. The supervisor should recognize the existence of information groups, identify the roles member play within these groups, and use knowledge of the groups to work effectively with them. The informal organization can make the formal organization more effective by providing support to management, stability to the environment, and useful communication channels.

Even though the differences among organizations are enormous, there are many similarities that enable them to be classified. One widely used classification is the twofold system (mechanistic versus organic forms of organizational structure) developed by Tom Burns and G. M. Stalker in their study of electronics firms in the United Kingdom. (See Burns, Tom and G. M. Stalker, Management of Innovation, London: Tavistock Publications, 1961, p. 19.)

The mechanistic structure is the traditional or classical design, common in many medium- and large-size organizations. Mechanistic organizations are somewhat rigid in that they consist of very clearly delineated jobs, have a well-defined hierarchical structure, and rely heavily on the formal chain of command for control. Bureaucratic organizations, with their emphasis on formalization, are the primary form of mechanistic structures. According to Max Weber, bureaucracy is a form of organization characterized by a rational, goal-directed hierarchy, impersonal decision making, formal controls, and subdivision into managerial positions and specialization of labor. Bureaucratic organizations are tall consisting of hierarchies with many levels of management. In a tall


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structure, people become relatively confined to their own area of specialization.

Bureaucracies are driven by a top-down or command and control approach in which managers provide considerable direction and have considerable control over others. Other features of the bureaucratic organization include functional division of labor and work specialization.On the other hand, the organic structure is more flexible, more adaptable to a participative form of management, and less concerned with a clearly defined structure. The organic organization is open to the environment in order to capitalize upon new opportunities.Organic organizations have a flat structure with only one or two levels of management. Flat organizations emphasize a decentralized approach to management that encourage high employee involvement in decisions. The purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. The supervisor tends to have a more personal relationship with his or her employees.


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Diagram: 1

GM OPERATIONS

DGM OPERATIONS

QualityControl

Supply(Func.Sit)

Semi kitchenKarachi & Dubai

SweetsProduction

FinishedGoods Store

PackingDepartment


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Diagram: 2

GM Shop Operations

Operation Manager PakistanOperation Manager UAE Operation Manager UK

Lahore Dubai

Karachi DubaiSemi

Islamabad&

RawalpindiSharjah

Sialkot

Peshawar


D

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Diagram: 3

GM Marketing

Customized CreativeNew Product Shops Web

Packaging Line Marketing MarketingDevelopment

PRODUCT

SERVICE

PACKAGING


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Managerial Hierarchy

TopManagers

MiddleManagers

FirstLine Managers

Operatives


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Levels of Management

Top Managers:

Managers at or near the top level of management who are responsible for making the organization-wide decisions and establishing the goals and plans that affect the entire organization.

Middle Managers:

Managers between the first line level and the top level of the organization who manage the work of first line managers. They are bound to take orders from the top management and bound to implement them on lower level of managerial hierarchy.

First line Mangers:

They are at the third level of managerial Hierarchy. Managers at the lowest levels of the organization who manage the work of non managerial employees who are directly involved with the production or creation of the Organizations products. In other words they are also known as supervisors.

Operatives:

They are at lowest level of managerial Hierarchy. They are the workers who are assigned a specific task or a job to be done. They do not supervise any one and they obey the above managerial Hierarchy.


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Hierarchy of Organization

CEO MR.

Faisal Farooq

GM GM GM GM Finance Corporate

Operation Shop.0peration Marketing Administration Manager Affairs

Mr. Sohail Rana Mr. Omer Mr.Saad Zahoor Mr. Shahbaz Mr. Azam Mr. Hafiz Ishaq


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Motivation and Reward

Special Discount Given To Employees:

On the marriage of any employee of Nirala, a gift of 10 kg sweets are given

On EID 1kg sweet is given as free to each employee

In RAMADAN, employee s is given free if tar party.

Company beliefs according to team work:

Team work, mutual trust and respect leads to personal growth and dynamic improvements in organizational team work.

Team work shifts the culture of organization into a more productive atmosphere.

They strongly believe on friendly environment.

Effects of team work on company:

Less duplication of work and rework.

Improved morale

Greater efficiencies in processes.

Less office miscommunication.

Greater profitability.


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Departments

Like any professional organization, the working at Nirala also follows a well planned

organogram. The Nirala Group comprises of the following departments:

Administration

Efficient management of all administrative affairs of Nirala Group of Companies is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.

Finance & AccountsThe Finance and Accounting departments at Nirala are responsible for the total financial management of the different businesses of the Group. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited.

Human ResourceThe Human Resource department at Nirala spearheads the recruitment process to ensure that the finest human resource is taken on board at Nirala. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Nirala.

MarketingConsisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made


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based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at Nirala. Milk ProcurementAs more than 90% of our food products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our customers. Ensuring regular collection of fresh and pure milk right from the farmer to the factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers. MISThe MIS department at Nirala ensures that all automation is running error-free at all times. Regularly modifying and updating the Company's accounting software is also the MIS team's responsibility. ProductionModern technology is part and parcel of Production at Nirala. More than 20% of Mithai production at Nirala Sweets is carried out at automated plants, either imported from abroad or custom-made in the country. Fresh and crisp snacks products of Nirala Snacks (Pvt.) Ltd., are prepared and packaged on modern machines as well. As far as Nirala Dairy (Pvt.) Ltd., is concerned, the state-of-the-art plant set up at Tandlianwala near Faisalabad, has a processing capacity of more than 300,000 litres of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards. Quality AssuranceQuality Assurance is strictly followed in all companies of Nirala Group. Be it Nirala Sweets, Nirala Dairy or Nirala Snacks, qualified food technologists at this department ensures that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise. Retail StoreWhereas Shop Operations is the sales force of Nirala Sweets, the Retail Sales are responsible for the sale of all products of Nirala Dairy and Nirala Snacks at all leading retail outlets in the cities and towns where Nirala has entered. At the moment, Nirala Dairy and Nirala Snacks products are sold at more than 30000 retail shops across more than 50 cities of Pakistan. Shop OperationsAll operations of Nirala's 22 company managed outlets are run by the shop operations department. This department, in simpler terms, is the sales force of the business. It includes professionally trained front-line salesmen at the shops, experienced floor managers, area managers, headed by a General Manager. Identifying strategically new locations and opening new shops is also done by this team.


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Store & ProcurementThe Stores & Procurement department working under Nirala Sweets is responsible primarily for procurement of all raw and packaging material and keeping its record for Nirala Sweets and Café Gowalmandi. Supply & DistributionThis department falls under Nirala Sweets and ensures timely and effective distribution of the products to the chain of Nirala Sweets stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.

BCG Matrix

1. Stars (=high growth, high market share)

Nirala UHT and SWEETS are the most well known and running products of Nirala Private Limited in the market. They give the best production and they have the most sales over the other products

2. Question Marks (= high growth, low market share)

Nirala SWEETS and Nirala SNACKS are in the category of question marks becausethey have low market share but have high growth specially (sweets). After the production and sale of UHT sweets and snacks give the advantage to the Nirala Private Limited.


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3. Cash Cows (=low growth, high market share)

Nirala BEVERAGES are in the category of cash cows. They have less production and fewer sales in the market because the competitors of Nirala BEVERAGES are more and it is not well known in the market.

4. Dogs (=low growth, low market share)

Nirala RESTAURANTS are in the category of dogs. They are not much published and are not well known among public because people prefer the well known RESTAURANTS but Nirala is working hard on their RESTAURANTS.


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4 Products of OrganizationThere are a lot of products of Nirala private limited but we are only describing four of them:

1. Mithai

2. Snacks

3. Dairy

4. Beverages


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Mithai

It all began in 1948 when the entrepreneurial Ustaad Taj Din migrated from Amritsar, India and started a breakfast joint in Mewa Mandi of Lahore. The uniqueness of the taste offered at the joint made it so popular that Taj Din soon decided to venture into Mithai as well, and opened a shop on Fleming Road in Lahore. The mithai tasted so different that he chose to call it Nirala … Today, over half a century after; the Nirala name has come a long way. Having won the trust and admiration of millions of customers across the nation, Nirala has also gone international with 2 shops in Dubai and Sharjah.

Nirala Sweets is now all set to launch its operations in North America and UK soon. Today, Taj Din's family has evolved the business into an ever growing empire. Inducting experienced professionals in the team, Nirala has grown from a small Mithai vendor to37 outlets in the country and 2 in the UAE. Nirala Sweets proudly offers more than a hundred varieties of Mithai to satisfy any taste. Our belief in 'nothing but the best' ensures that every experience with Nirala Sweets is as 'sweet and tasty' as ever and that quality is never compromised. Nirala Sweets is not just a name. It is a tradition, a trust and an integral part of your joyful memories.

• Regular Mithai• Special Mithai• Sugar-free Mithai• Cold Range• Complete Range


[SUPPLY CHAIN MANAGEMENT ]ORIENT CRM PROJECT REPORT

Snacks

Our saltish range is one of the best and can be had with a cup of tea, coffee or a refreshing drink. An ideal snack prepared in natural oil to invigorate you and provide utmost fulfillment, our snacks range consists of Chips, Dal Masoor, Dal Safaid, Mongra, Namek Paray, Samosay (Potato and Chicken) and Sawaian, and are available across Pakistan from Nirala outlets as well as leading retail stores and supermarkets.

• Nirala Snipz• Nirala Snipz Torpedoz• Nirala Khata’ees• Nirala Pheonian• Nirala Samosa

Dairy

An integrated milk & milk powder processing plant has been set up at Tandlianwala, near Faisalabad, under the name of Nirala Dairy (Private) Limited. Nirala Doodh, the UHT packaged milk of the Company was launched in June 2005 and is now the favourite brand in many households. This is due to the strict quality measures that the Company religiously adheres to. Nirala Desi Ghee (Butter Oil) was launched earlier and is leading the market in its category due to is superior quality and taste. Many more products in the dairy range are being

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developed and will be launched shortly.

• Nirala Doodh• Nirala Cream• Desi Ghee

Beverages

At Nirala, we believe in consistent expansion of our product range as per the expectations of the modern consumer.Our beverages line is yet another addition to the wide range of products relished by ourprestigious consumers.

Rabri Mi l k :

Traditional, cool and refreshing Lahori milk drink has been developed by Nirala Sweets to provide our valued consumers with yet another product they can savor. Enjoy the chilled, energetic and nourishing Rabri milk available at all Nirala Sweets outlets throughout the year. With low fats and a smooth-as-silk texture, our Rabri Milk is lighter on the stomach and is the ideal drink to refresh you on hot and humid afternoons.

Bouncer:

Nirala’s juice by the name of Bouncer is an exciting treat, yet nourishing and naturally fruitful. It is becoming fairly popular especially amongst kids because of its refreshing & energizing flavor. It is packed in a 6-layered Tetra Pack brick aseptic packaging.

Nirala Pani:

Living up to our legacy of invincible quality, we bring for you Nirala Pani, to refresh you anytime, any where.

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FUTURE PLANS

• To promote Nirala diaries by offering its customers finest quality ofUHT milk

• To use the recognition to improve its operations.

• The company plans to expand nationality with a wider presence in Pakistan as well as to expand its organizations in the Europe and United States.

• They have planned to promote different products of nirala by offering free gifts to its customers with some products

Five Forces

Four forces -- bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitute products -- combined with other variables to influence a fifth force, the level of competition in an industry. Each of these forces has several determinants:

The threat of entry:

™ Economies of scale e.g. the benefits associated with bulk purchasing.™ The high or low cost of entry e.g. how much wills it cost for the latest

technology?™ Ease of access to distribution channels e.g. Do our competitors have the

distribution channels sewn up?™ Cost advantages not related to the size of the company e.g. personal contacts or

knowledge that larger companies do not own or learning curve effects.™ Will competitors retaliate?™ Government action e.g. will new laws be introduced that will weaken our

competitive position?™ How important is differentiation? e.g. The Champagne brand cannot be copied.

This desensitizes the influence of the environment.

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The power of buyers:

™ This is high where there a few, large players in a market e.g. the large grocery chains.

™ If there are a large number of undifferentiated, small suppliers e.g. small farmingbusinesses supplying the large grocery chains?

™ The cost of switching between suppliers is low e.g. from one fleet supplier oftrucks to another.

The power of suppliers:

™ The power of suppliers tends to be a reversal of the power of buyers.™ Where the switching costs are high e.g. switching from one software supplier to

another.™ Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.™ There is a possibility of the supplier integrating forward e.g. Brewers buying bars.™ Customers are fragmented (not in clusters) so that they have little bargaining

power e.g. Gas/Petrol stations in remote places.

The threat of substitutes:

™ Where there is product-for-product substitution e.g. email for fax where there is substitution of need e.g. better toothpaste reduces the need for dentists.

™ Where there is generic substitution (competing for the currency in your pocket)e.g. Video suppliers compete with travel companies.

™ We could always do without e.g. cigarettes.

Competitive Rivalry

™ This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram.

™ Number of competitors™ Rate of industry growth™ Intermittent industry overcapacity™ Exit barriers™ Diversity of competitors™ Informational complexity and asymmetry™ Brand equity™ Fixed cost allocation per value added™ Level of advertising expense

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Marketing Strategy

Industry analysis

Sweets (mithai) is in our culture for centuries. It is our cultural heritage; people of our region

have different taste in sweets as compared to west. The western people eat chocolate as

sweets but in our region sweets are mithai. So in every town every city of Pakistan these

sweets shops are seen. Lahore and the people of Lahore are known for their tastes and eating

habits so there are many small scale sweet shops in almost every area. Nirala has also started

as a small shop in Lahore but with changing market conditions with increase in purchasing

power of customer and their every day changing taste buds nirala has also improved.

Although the tastes of customers in many other dishes are changing people now a days are

eating fast foods and liking Chinese and western dishes rather than our typical eastern or

Pakistani dishes, like we have seen many western dishes in our wedding occasions which

shows the changing consumer needs. But this trend is not in sweets industry the habit of

eating sweets is very much in like centuries before. It is the most essential component of

wedding no wedding, no ceremony or other occasion of celebration is complete with out

sweets. with the ever increasing purchasing power people are purchasing sweets in bulk form.

Although the industry of sweets is century old but it is not fading with the time it is getting

rich day by day.

Strategic Situation Analysis

Now a daysNirala is known as the most well known brand n sweets industry catering the

higher end of the market continuously improving and expanding. If we talk specifically about

the sweets market we find that Nirala is facing competition from two sides those who

specifically produce deals in sweets and those who produce sweets in addition to other main

products.

• The most direct competitors are no where near to Nirala. Nirala’s revenue is much ahead

than others their branch network is also large expanding every day from cities of Pakistan to

other countries in middle east and now to Europe. Therefore Nirala is only Pakistan sweet

company which is also in west, as they are opening new shops in U K and Canada very soon.

This shows the immediate competitors and Nirala position which are no where near. Because

Nirala has proper setup in the form of fully developed company with departments which

control the different activities from procurement to manufacturing till final selling to

customer like any other multinational organization. They are fully equipped with latest

technologies and manufacturing plants, but their competitors are only targeting small segment

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of the market they are not been upgrading themselves that is why in the race of capturing

market they are staying behind the market leader Nirala

• Nirala has big threats in Pakistan from Gourmet and Shezan bakers in sweets as these are

the only few stores who are catering the same market as Nirala is doing. They also have well

established brand name and image. The quality of their products is also not less than Nirala.

their branches are also not less than Nirala especially Gourmet which is doing business

expansion at fast pace. The organizational structure of Gourmet is well established and their

brand image and perception is also strong so Gourmet can be the biggest threat for Nirala.

Market Vision, Structure and Analysis

Sweets industry in Pakistan is growing. Mithai is used in Pakistan on weddings, celebrations

and other happy occasions. There are many sweets shops in Lahore only. Nirala is in this

industry for many decades they been serving this industry effectively.

Segmenting Market

There prices of Nirala products are higher as compared to their main competitors and

secondly they shops and stores are mainly located costly areas of cities. Keeping these factors

in view we can say that there target market is upper middle to upper class.

Continuous Learning about The Market

Nirala is different from others because they have been continuously upgrading themselves

over the years. They started their business from the inner city congested locality as traditional

sweet shop mostly found in cities doing small scale business and selling only mithai related

products or dairy products.

But Nirala has learned a lot from the changing tastes of their customers and their preferences.

They changed their stores outlook made them more modern and updated and introduced more

updated functions in stores operation. They have been successfully able to shift their small

scale business to a company level business. Their initial area of business was their hometown

Lahore, but they successfully expanded their business to other big cities of Pakistan.

Secondly they continuously keep working on their products and for over the years been able

to launch different successful products in market. Their major focus is on quality of their

products so to maintain strict laws of quality they have separate quality control department.

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The other example of their continuous learning about the market is their successful launch of

snacks product category and their dairy products. They launched Nirala milk in the market a

few years back although their milk was not the big success as it has to compete industry

giants like nestle, haleeb etc. but their snacks category is successful and been able to capture

a large portion of the market. These snacks are not only available at Nirala stores but at some

other stores also.

DESIGNINIG MARKETING STRATEGY

MARKET TARGETING AND STRATEGIC POSITIONING

If we analyse the nirala target market we came to know that its target market is mainly the

middle, upper middle and the upper class. We come to know about this when we analyze its

sweets prices which are much higher then its main competitors, the quality and the variety is

much richer than the others. Secondly major nirala stores are located at the costly areas of

cities. They store environment and the level of cleanliness and the behavior of their staff is

not less than any international product shops. The other most important point is their

corporate clients which include companies big and multinational companies and some big

banks also. Nirala sweets provide these big companies sweets on their functions and also

their desired packing. These companies order nirala for the sweets and snacks and nirala earn

a large portion of their revenue from these corporate clients .

BRAND IMAGE

So by analyzing all these unique features of nirala business the immediate positioning of

nirala came to mind is that

• It is sweet store which gives complete range of sweets,

• Employees in a uniform neat and clean.

• Nirala sweets are high quality sweets and full of freshness and taste.

• Their packaging styles are highly personalized according to the choice of customer and

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related to the event. Price vise their positioning as already said is higher price targeting higher

class of SEC.

MARKETING RELATIONSHIP STRATEGY

Nirala is practicing the marketing communication tools in the form of hoardings, leaflets,

banners, magazines, newspapers and on public transport. In addition to it they also having

promotional activities which are discounts on the bulk purchase, wedding offers, free

sampling on the launch of new product.

Although all these tools are very good and efficient and nirala been able to raise their sales

over the years. But in spite of all these they haven’t been able to develop TV advertisement

campaign. This is seen in the case of nirala milk as it is not been successful enough in the

market as nirala didn’t have any advertisement in TV for nirala milk.

Target Market Analysis

Demographics:

Mithai is a product well-known among all age group people.

People of all:

Age

Gender

Generation

Family Size

People belong from all ages generally love sweets and our core products so there is no

exception likewise teenagers like it whereas old people don’t like it, but in one sense Nirala is

targeting more towards people belong from age group approx 10 to 50 years i.e. including

teenagers, youngsters, mature people however age group exceeding 50 years i.e. old usually

suffer from different sugar prohibit diseases. So this sector is a low consumer of their

traditional product.

Gender is not an issue at all. Both genders came in the sphere of Nirala’s target.

New generation is more concern about new taste and looks, Nirala seems quite conscious

about this factor. It is continuously modifying its products according to the changing needs of

the new generation i.e. virtual placement in order to facilitate the customers worldwide.

Being a server of eastern society like Pakistan where family size is usually large which means

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strong concern about events and occasions. Nirala as one of the largest sweet dealers was

always be there to facilitate them i.e. whether it’s a joyful moment like marriges or a moment

of sorrow.

Geographic:

Nirala is targeting mostly the urban areas all over Pakistan

Lahore

Karachi

Islamabad

Rawalpindi

Faisalabad

Sialkot

Kasur

Multan

Gujranwala

Nirala is expanding its network globally

Dubai

Sharjah

UK (opening soon)

Canada (opening soon)

Psychographic:Marriges, cultural occasions and personal events are the events from which no social class

can be excluded. However being a sole marketer of high quality which ultimately leads to

higher price, Nirala’s focus is more towards society’s middle and upper class.

Media Graphics

Hoardings

Banners

Leaflets

Magazines

Newspaper

Advertisement on public transport

Competitor Analysis

Competitors:

Direct competitors of Nirala Sweets include:

Rafique Sweets

Fazal Sweets

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S.W.O.T Analysis

Strengths:

• Strong Brand Name.• Due to mass production the cost is reduced and it helps maintain the financials on

smooth flow.• Company has their own setup/ it is the family business resulting into independent

decision making.• It enjoys approximately 30% market share, which is greater than any other

company in this business.• It has ISO 9001 quality assurance certificates in sweets lines or divisions.• Its brand is widely acceptable as a symbol of quality.• Company owned delivery vans for special occasions.

Weaknesses:

• Cannot take small orders with reference to home delivery.• NDPL (Nirala Diary Pvt Ltd.) & NSPL (Nirala Snacks Pvt Ltd.) still don’t have

dedicated structure of management.• Heavily financed by financial institutions.• Lack of inter-departmental coordinations.• The employee rewards/promotion process is inadequate.• The selling price is out of the reach of consumers from low income group where

the sweet consumption is relatively higher.• No retention policy for the outstanding performers.

• They have not promoted their Restaurant even people are not aware; where the restaurant is located and to whom (Nirala) it belongs.

Opportunities:

• Being one of the best mathai manufactures in Asia, the company has great opportunity in the export market in Middle East, Canada, UK and USA.

• NIRALA being the leader is far ahead from the competitors, there is no rival

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company with in the country that can match the market share and production capacity. By increasing the number of production facilities the sales volumes can be enhanced.

• NIRALA is going into diversification by establishing restaurants, café, diary business, snacks, etc which will improve their business turnover and profitability.

Threats:

• Primary Competitors in sweet business like Gourmet bakers, Fazal Sweets, and secondary Shereen Mahal in addition of their growing branches.

• Products of other bakeries and Methai Shops are cheap.• Taxation in advertisement is increasing the marketing cost hence, reducing the

profits.• Strong and established competition in Milk industry like CDL Foods and Nestle.• In snacks they would be facing antagonism by companies like Tripple Emm and

Saigol Foods Ltd.

Conclusion Research is the key device to sort out that what problems an organization is facing

in the existing market situations and to suggest the solution to these problems this

research is conducted about the management structure of Nirala (pvt) Ltd, one of the

most progressing company in Pakistan, which has experienced tremendous growth

over the period of past ten years.

Nirala is a distinguished brand in Pakistan. NIRALA claims that “we don’t

compromise on quality”, and it is proved to be right, that is why it is growing day

by day.

Nirala Sweet is an excellent sweet mart with the a large variety of sweets.

Running in an advance and computerized database management system which makes

it easier for them to manage the entire operations of the company.

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They are opening new branches internationally which no other sweet mart is

providing which helps them in reaching to those Pakistani’s who live out of country

and want to enjoy Nirala.

Nirala is market leader and they have no GAP relevant to their customer needs since

they are catering to the needs of the customer and by getting regular feedback they are

trying to eradicate their weak areas.

They are fulfilling their promises regarding their claims which they are giving to their

customers and when they fulfilling it that means that they are satisfying their

customers.

Recommendations They should review the costs of their products since they are targeting the higher class

and upper middle class so that’s why the rates are high as compared to their

competitors which makes it difficult for the people with medium income and low

income. If they review their costs and cut down a little bit on their prices then they

can cover a much more number of customers and their sales will increase.

By adopting reduce price strategy they can make more and permanent customers. Not

only more customers will come there will be increase in the number of loyal

customers as well.

They have to acquire new technology for production if they don’t move towards

acquiring new technology then they wont be able to meet the needs of customers.

Sales promotions like prizes, lucky draw schemes should be introduced to attract

more customers and involve kids and children to increase sales.

Enter in the bakery products is a very good option for nirala since they are doing

good and by entering into baker would increase their range and it would give a

broader view of the company to the consumer.

Must capture some special events like local sports series, convocations & charities

shows by sponsoring these shows as would give a good image about the company to

the consumer.

Reference:41


Narala Sweete official websitewww.narala.comwww.slideshare.comwww.google.comwww.down.com

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