MARKETING REPORT

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VISION STATEMENT

“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.”

(REFERENCE = NATIONAL FOODS WEBSITE)

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ADEEL HABIB BHATTI
USMAN AZIZ
KHAWAR AZIZ
WAQAS AHMED
RABIA MANZOOR
CLASS: MBA – 1(A)
SUBMITTED TO:
MS SALMA ATIF SHEIKH
DATE: 22-05-2012

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1: Background Page 5

2: Planning Strategy and Goals Page 6

2: Product Page 9

3: Swot Analysis Page 10

4: Product Mix Page 14

5: Brand Identify Page 17

6: Selection of Brand Page 23

7: Promotional Page 25

8: Distribution Page 27

9: Analysis and Critical Review Page 31

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COMPANY PROFILE

BACKGROUND

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, our 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and the notion of only women doing the housework – have become outdated, in this age of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.

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Today, National Foods provides a complete food experience to its customers

in 33 countries around the world. National Foods produces over 300 SKU's in 12 major
product categories including meal solutions, pickles, sauces, ketchup's, jams and desserts.

National Foods is reaching out to the voice of its customers by delving further
into the convenience food segment and adhering to their philosophy of offering superior taste
and quality.

PLANNING STRATEGY AND GOALS

In this era of fast paced life, execution of business decisions has significantly
been impacted through the use of technology. Planning, analysis and strategy developments
are now all dependent on the plethora of information available. Correct usage of this
information can impact and reward the outcome of business results in the shape of growth,
profits, market share and also the brand image and perception a company portrays in the one
large global market. Technology has indeed transformed how we think and perform our tasks.
Most of all it has unified markets into a global village promoting direct interactions with
customers and service providers. Indeed, business is being executed at the speed of thought.

Our journey to become a leader in the food business in Pakistan and a major
player in the international markets has not come about without the use of technology. In fact
our growth rate has been sustained through the continuous usage and up gradation of
technology when adapting to modern management practices. Our brand today is ranked at
number 2 position out of a total 3500 brands marketed and sold in Pakistan.

Our brand new website showcases all our categories and brands and in fact
offers you an opportunity to directly interact with us. Although we produce branded multi
category food items; the complex process of manufacturing, supply chain management,
quality assurance, research and development, market research and brand marketing practices
are heavily dependent on the extraction and usage of data to make decisions. Our choice of
using SAP applications towards enterprise management has helped us reap many awards of
excellence. Technology is embedded in how we do business.

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In the months to come, you will see our website develop and evolve further to
cater to all our business stakeholders. We will offer them a direct transactional nature of
relationship by linking our ERP SAP applications to help them make informed choices to
further our mutual business. The Internet in fact will become the nucleus or the hub around
which we shall be carrying out all our business.

The website will become the central hub offering stakeholders and consumers
company information and updated knowledge and news, it will provide a direct access to
employees to interact through a company intranet, it will become a portal for all our supply
chain customers to track their orders and finally a vantage point for all our customers
domestically and globally to order our products as an individual user or a business distributor
directly without any interaction from us.

CORE VALUES

PASSION

We act with intense positive energy and are not afraid to take risks. We
challenge ourselves continuously, we’re good at what we do, and we take pride in who we
are.

PEOPLE-CENTRIC

We put our people first. We treat them with respect and actively contribute
towards their development.

CUSTOMER FOCUS

We see the world through the eyes of our customers. We do everything

possible that makes them happy.

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LEADERSHIP

We are part of the solution, never the problem. We act like owners and have a
positive influence on others.

TEAMWORK

Our roles are defined, not our responsibilities. We believe in going the extra
mile to accomplish our goals. We coach and support each other to ensure everyone wins. We
have a “WE versus I” mindset.

ETHICS

We don’t run our business at the cost of human or ethical values.

EXCELLENCE IN EXECUTION

We say. We do. We deliver. We talk with our actions. We strive for nothing
but the best. Execution is the key to winning.

ACCOUNTABILITY

We see. We act. We take full responsibility for our actions and results. We
don’t blame others for our mistakes; we analyze them and correct them.

PRODUCT MARKETING STRATEGY:

Raise consumer brand awareness, excitement and involvement

Promote a special offer or incentive

Stimulate product sampling and trial

Demonstrate product/service benefits

Generate in-store or online site traffic

Stimulate media interest and industry buzz

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PRODUCT
Product is a term covering goods, services, places, persons and ideas.

DESIGN AND PHYSICAL CHARACTERISTICS:

We are introducing a radical design that hasn’t been introduced in the market
so far. It will be a multi shades rapper, which has

TARGET MARKETING

CONVENIENCE:
NFL product falls in the category of convenience goods, these includes the
goods for which the customer doesn’t have to put a lot efforts. Products like shaving creams,
toothpastes and food items fall in the category of convenience goods

PRODUCT DEVELOPMENT:
Product development procedure includes the logical sequence of one-time
activities. The activities include:

Idea generation
Screening of idea
Business analysis

IDEA GENERATION:
Idea should be innovative it should something which hasn’t been introduced
the market before, our idea of a complete recipe

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SCREENING OF IDEA:
Screening is done by management on the basis of experience .we have
experienced staff in this field, which will screen out the idea.

BUSINESS ANALYSIS:
The screened idea is then expanded in the form business proposal. In this step
we analyze whether we’ll be able to implement the idea or not. So in our products business
analysis we’ll keep in view product classification, product characteristics, market
segmentation. We’ll analyze our products markets on the basis of our target. We will
definitely target the elite class of the society first because of their buying practices and their
behavior. Our target market is mainly the ladies specially house wives.

SWOT ANALYSIS
SWOT analysis plays an important role to evaluate the performance of any
organization. This is most commonly followed set pattern to analyze the strength, weakness,
opportunities and threats. For any company strength and weakness are internal elements and
threats and opportunities always come from outside the organization. Now we perform a
detailed SWOT analysis considering the National foods.

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STRENGTHS

BROAD PRODUCT LINE:

National food has very broad product line that includes different types of
Masala powders, Kheer mix, Ketchup, Custard powder, Pastes, Achar and many more..

BROAD MARKET COVERAGE:

National food occupies 80% market share in powder mix market and one
very obvious reason for that is strong and very broad market coverage. According to Sales
and purchase Manager National food, they have excellent market coverage all over Pakistan
and citizens of each city have easy access to sales and display centers.

MANUFACTURING COMPETENCE:
National food has engineering and technical staff of the highest caliber that is
capable of manufacturing such products that differentiates National food products from its
competitors. National food posses specific manufacturing competence for example uses of
imported machinery and a high quality ingredients in manufacturing of powder mix that
maintain the quality of product.

GOOD MARKETING SKILLS:

National food’s efficient marketing team in Pakistan has over the years played
a crucialrole in developing public awareness. National food has its own in-house advertising
agency for promoting all National food’s products.

ENHANCED RESEARCH AND DEVELOPMENT:

National food emphasizes on Research and Development department to a
great deal. Chief executive of National food has hired a team of R & D himself and he makes
sure that ongoing improvements in the existing National food products range is a continuous
activity. Efficient R and D department is considered as a vital strength of company.

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BRAND NAME REPUTATION:

National food is among those few brand names that have earned a lot on the
basis of its brand reputation. However the fact is that company has seen tiring 34 years of
hard work to achieve this brand image. Brand name is a source of vital strength for the
company and is known all over the market place.

APPROPRIATE ORGANIZATIONAL STRUCTURE:

Organizational hierarchy at National food is very functional and appropriate.
Company top management consists of the Chief executive and Managing director. Then there
are middle managers of concerned departments like Marketing, Production, R&D and
Finance. Company believes strongly on good relationship with its human resource.

GOOD FINANCE MANAGEMENT:

Finance department of National food is efficiently working to allocate
resources to each of its business portfolio. Good finance management is yet strength of
company that is helping company out in assessing the exact financial situation.

WEAKNESS
Currently National food is operating with its full capabilities and Company’s
sales manager does not think that there is any internal weakness in the organization. Because
Company has a good repute in market and working with full concentration to improve its
image in the minds of people.

OPPORTUNITIES

EXPANDING INTO FOREIGN MARKETS:

The biggest opportunity for National food currently is exploiting new market
segments. After achieving good market coverage all over Pakistan, National food is now
trying to expand its business in Middle East and Central Asian states.

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EXPANSION OF CORE BUSINESS:

National food started as powder mix producers but soon after gaining rapid
market shares in powder mix, Company considered expansion of core business as a major
opportunity. Today Company has wide range of products that it has achieved by expanding
the core business.

ENTERING RELATED BUSINESS:

Entering those new businesses that are related to current business is a high
potential opportunity. For example company has entered the related businesses like Kheer
mix, Ketchup, Custard powder, Pastes, Achar and many other things.

THREATS

NEW ENTRANTS:
The biggest threat for the Company has been the entry of new competitors in
the market has made National food management think that they will have to adjust the pricing
or to provide some handsome incentives to customers in competition with other brands in
market because Company does not want to lose its market share.

NO BARRIERS ON ENTRY:
Government has not fixed any hard rules upon the entrants in this industry.
Any group of companies that is financially strong can enter this industry without facing any
strict barriers. This is another threat for National food that more and more entrants coming in
this industry and the profit margin shrinking gradually.

NEW FORM OF INDUSTRY COMPETITION:

In Pakistan, some other companies like Star has started competing National
food with its Custard powder and Achar. It has formed a new form of industry competition.
Star is producing its products at a cheaper price and price war is already on.

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GOVERNMENT LEGISLATION:
The production department of National
food uses special machinery that has to be imported
from abroad. Government has fixed a quota system that
company cannot import. It more than a specific ratio. This
quota system is creating a threat for company and soon
company needs to find an alternative.

PRODUCT MIX

PLAIN SPICE
SALT
RECIPE MASALA
CHINESE SALT AND VINEGAR
PICKLES
KETCHUP
JAM JELLIES AND MARMALADES
SNACKS
DESSERTS
READY TO EAT
RICE
POWER DRINK

FURTHER DIVISION OF THE PRODUCTS:

SNACKS
CHAAT MASALA
DHAI BHALA
PAKORA
FRUIT CHAAT MASALA
CHUTNI
CHINESE

CHINESE SALT

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SOYA SAUCE
VINEGAR WHITE
CHILLI SAUCE

AVAILABLE IN TWO SIZES, SMALL AND LARGE

SALT

TABLE SALT
IODISED SALT

AVAILABLE IN POUCHES

POWER DRINK (KNOWN BY THE

NAME OF FRUITILY)

ORANGE
MANGO
LEMON
MIXED FRUIT

AVAILABLE IN MINI
SASHA`S, BOTTLES
AND PACKETS

DESSERTS

VANILLA
STRAWBERRY
BANNANA
MANGO

AVAILABLE IN TWO SIZES,

SMALL AND LARGE

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RICE

SUPER KERRENEL BANASPATI

LONG GRAIN BANASPATI

AVAILABLE IN DIFFERENT GRAM POUCHES

KETCHUP

TOMATO KETCHUP
CHILLI GARLIC SAUCE
HOT AND SPICY SAUCE

AVALABLE IN POUCHES,SQUEEZ
BOTTLES AND GLASS BOTTLES IN
SMALL AND LARGE SIZES.

JAMS

APPLE
MANGO
MIXED FRUIT
STRAWBERRY
BLACKCURRENT

AVAILABLE IN A STANDARD BOTTLE SIZE

PICKLES

MIXED
MANGO
GARLIC
KASUNDI
LASOORA
CHILLI
HYDERABADI MIX
KARELA
MIX VINEGAR

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MANGO VINEGAR

AVAILABLE IN POUCHES

READY TO EAT (KNOWN BY RONAQ)

CHICKEN QORMA
CHICKEN KARAHI
CHICKEN BARYANI
CHICKEN WHITE KARHAI
CHICKEN GINGER
CHICKEN HALEEM
CHICKEN ACHARI
CHICKEN NIHARI

AVAILABLE IN PACKETS OF TWO DIFFERENT SIZES, SMALL AND LARGE.

PLAIN SPICE

GARAM MASALA POWDER

CURRY MASALA POWDER

AVAILABLE IN PACKETS OF TWO DIFFERENT SIZES, SMALL AND LARGE.

BRAND IDENTIFY

BRAND 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

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our soul. We’re still caring, optimistic, and reliable and now we’re livelier than ever before!

CORPORATE 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.

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BRAND COLOURS

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CULTURE

NFL talk about their values consistently at all levels and use the HAMSAB
platform to build and sustain a healthy positive vibe across the organization. With the
growing passage of time, they reinforce their core values through communicating them down
to every level in the organization.

They remind their people of the principles they stand for and how to create
business opportunities within the boundaries of integrity and fairness. This is how they create
lasting change and develop a mindset of a truly accountable workforce.

THE SELECTION OF SPECIFIC BRAND

NATIONAL KETCHUP

The national ketchup is providing:-

TOMATO KETCHUP
CHILLI GARLIC SAUCE
HOT AND SPICY SAUCE

KETCHUP BRAND ANALYSIS:

Ketchup brands vie for supremacy in a very tough battlefield. Ketchup is also
more severely judged than other kinds of food, because while it is exceedingly popular
among adults, by far the largest consumers of ketchup are children – and children are very
hard to please.

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We’re proud to say that National Foods Limited has succeeded in meeting
Pakistani children’s high ketchup standards year after year. Delivering the perfect balance of
tart and sweet, National Tomato Ketchup stood 1st at the Brand Elections 2010, leaving other
competitors far behind by tremendous margins.

PRICING ANALYSIS

This is another very important aspect in marketing a product. Because most of

the people in our country adopt or buy any product because of its low price and high quality
so our main objective is to make a low price and high quality product.

SELECTING THE PRICING OBJECTIVE:

EVERY FIRM HAS ITS OWN PRICING OBJECTIVE IT MAY EITHER MAY
TOO.

SURVIVE IN THE MARKET

TO MAXIMIZE THEIR PROFITS
MARKET SHARE MAXIMIZATION
MARKET LEADERSHIP

Well the pricing objective of NFL is to capture mass amount of market share
because if they manage to do so then automatically with the passage of time they can become
the market leaders and can maximize their profits.

DETERMINING DEMAND:
The determination of market demand is another very important factor in
pricing, the demand can be either elastic or inelastic .I think the demand of their kind of
products is elastic because there are a lot substitutes available in terms of other food mix of
other company. So if NFL introduces a high price product the greater chances are that our
product won’t be very successful.

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ESTIMATING COST:
This is the most important step in pricing, and is a combination of fixed cost
and variable cost.

Total cost =fixed cost +variable cost

AUDIENCE VIEWS:
The pricing of national ketchup brand is nominal in customers view, the
pouch pack is convenient to use and cheap in price.

PROMOTION

Promotion is to inform, persuade and remind a market of a product an

organization is selling in a hope to influence customer feelings and buying behavior. By
adopting the promotional method NFL want to inform the market about our new product,
with the hope that it will influence the customer feelings and buying behavior.

PROMOTIONAL ANALYSIS:
Both pull strategy and push strategy is executed to make a good image in the
minds of consumers and to promote the sale.

PUSH STRATEGY:
For an effective push strategy wholesalers and retailers are advised to increase
the sale of NFL product. For this purpose NFL offer them different incentives and good profit
margins so that they convince their customers to buy our products.

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PULL STRATEGY:
Through advertisement on different Medias and promotional campaigns NFL
make animate in the minds of end user about our product. Because launching a new product
in the market and there are number of competitors in the market, so emphasis is to capture the
maximum market share. to concentrate on NFL`s pull strategy so that they can make leader in
the market of this kind of product.

PROMOTIONAL CAMPAIGN:
A survey conducted by National food advertising agency owned by company
itself shows that correct media selection has helped company achieving communication goal.
As a combination of different types of media used (TV, Radio, and Newspaper) by national
food, 50-70 % people are accessed out of whole population of Pakistan. National food spends
lots of efforts on promotion of its products as management thinks itis the essence of
marketing that you communicate effectively with your target customers.

Following campaigns are used for the promotion of our product.

SALES PROMOTION:
Advertisement is done in such a way that people are waiting anxiously for
NFL`s product. NFL starts by giving a surprise to people that something useful for them is
coming to serve them. they adopt this way because their product is going to be launched for
the first time in the market. So they also use billboards to promote our product.

NEWSPAPERS:
NFL knows that newspaper is very effective and inexpensive media to convey
the message to target market. Newspapers is extensively used to promote NFL`s product.
General awareness and advantages of NFL`s products is given to the prospect users.

SEMINARS:
To start with an effective sales promotion some introductory seminars are
conducted. In which all the wholesalers are invited from different parts of City and Country.

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They are introduced with their product and sales and promotional plans. NFL
briefs them about the incentives they are going to offer them. they convince them about the
strength of their product.

TELEVISION (TELEMARKETING):
They know that TV is very effective media now days. NFL can convey their
message to all the prospects very effectively. Different ads and commercials run at different
times preferably during family programs (dramas). To use TV intensively is long term
strategy, which will last the image of their product in the minds of customers for a long span
of time.

PUBLIC RELATION AND PUBLICITY:

Doctors are invited in the TV advertisement. They will discuss about NFL`s
product because this product related to food so this could convince to the health conscious
people. Through Doctors. NFL generates the idea about the product that how much it is
necessary in people’s daily life. Through this NFL will establish an effective link between
their product and user. Their relation campaign also targets different cooking schools to
generate awareness about the use of our product. NFL tries to make ladies their advocates.
National food also arranges different types of funfairs, Cat walks, Cooking competition, Kids
show, singing competition etc… to promote its products and invoke the interest among
people.

DISTRIBUTION

DISTRIBUTION CHANNEL

ROLE OF DISTRIBUTION CHANNEL:

Middleman is of lot of concern for the distribution of our product. Middle
man involvement is necessary for our product because our product is not that kind of in
which we direct contact with end user, so that’s why we need the role of middle man which
specifies the role of our distribution channel.

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TYPE OF DISTRIBUTION CHANNEL:

Our product is a consumer good. So our distribution chain is:

WHOLESALE
PRODUCER RETAILERS CONSUMER
R

This distribution chain is for Karachi. In Karachi those wholesalers are

selected who deal with the major markets and big stores of all the parts of Karachi.

WHOLESALER
PRODUCER AGENTS RETAILERS CONSUMER

This distribution chain are used out side Karachi for different other cities.
From where agents are used to distribute our product in different other cities.

INTENSITY OF DISTRIBUTION CHANNEL:

NFL say that intensity of our distribution channel will be selective, so that we
can spread their product throughout PAKISTAN. Because their goal is to capture the
maximum share of market.

DISTRIBUTORS OF ISLAMABAD:
Capital distributors of Islamabad for NATIONAL tomato ketchup are situated
in Tarlai, and they are responsible for the distribution in Islamabad and as well as in
Rawalpindi.

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PICTURE GALLERY

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ANALYSIS AND CRITICAL REVIEW:

National Foods started manufacturing and marketing of packaged spices at a

time when everyone was using the stock lots available at retail stores. Our philosophy was,
and still, based on:

1) Purity, quality and innovation,

2) Customer satisfaction and

3) Value for money.

The mission and objectives are:

1) To be positioned as food company,

2) Consistent quality and pure ingredients,

3) Authentic recipes and

4) Attain and maintain leadership in all categories of products being manufactured.

Competitors are always the biggest threat to any product this threat could be in
terms of brand competition, substitutes, image competition and rival companies. Although the
product, which we are introducing, is new in its kind although there are a lot of food powders
that are for food but this will be unique in its kind because it is anew trend in paste form. We
are increasing the product line of an organization so definitely our company already
possesses an image in the market. Although there are a lot of substitute brands that have
powders in the market and would give us tough time but the competition will be only in terms
of powder mix and not the other features.

National Foods is also carrying out competitor's analysis and in order to be

competitive and win the competitive value equation National Foods is focusing on tight
control of capital spending, improved inventory control, and lower product and
manufacturing costs through standardized manufacturing platforms etc. Its main competitors
are SHAN industries and Mitchell’s.

The advantage that national food carries from the review of the audiences is
that the recipes of national food is less spicy then SHAN, so most of the cutovers prefer NFL

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recipes, as far as regarding ketchup, the NFL has captured the youngsters market by taste of
their

tomato ketchup. The NFL introduced the concept of eating ketchup with spoon, because of its
taste.

COOKING PASTE:
Is a radical idea, although there are powders available in market but our trend
of cooking paste is a new trend, now no need to make paste of powder, just open the packet
and use it?

National foods limited has a wide range of product line and still counting, the
brand name is well established and known so whenever they launch a new product, they do
not face difficulties in bringing people to awareness for their new product. The prices are
nominal in customer’s point of view, they are satisfied with it. The company has a very
strong promotion strategy, they use almost every known way for the promotion of their
product. Also their distribution network is very strong and well assembled.

Another interesting fact about the NATIONAL FOOD LIMTED is their name,
the word national is used by another renowned company, which is a Japanese and is known
for their electronic appliances, many people confuses the national food company with
national, for regarding them as one. But it is not; in fact it gives the national food advantage
as the national is well known for its trademark name.

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