STRATEGIC MANAGEMNT

STRATEGIC ANALYSIS FOR NATIONAL FOODS LTD

Course Instructor

Sir Naveed Muhammad Khan

Group Members

1. M. Umar Khan 20221-32712

2. Ahmed Shabbir 20221-32351
3. Abdul Muizz Khan 20221-32073
4. Asad Ahmed Khan 20221-32356
5. Muhammad Shahroz Faisal 20232-33435

Submission Date
10th May 2025

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Table of Contents

1) Introduction to the company and its background ...................................................... 2

2) Products and services of the company .................................................................... 3
3) Analysis of the Vision and Mission statements ........................................................ 3
4) External Factor Evaluation (EFE) Matrix – National Foods ...................................... 6
5) CPM – Competitive Profile Matrix ............................................................................ 6
6) Industry Overview: Packaged Food & Spice Sector in Pakistan .............................. 7
7) Porter's Five Forces Analysis: Pakistani Packaged Food Industry ........................... 7
8) Internal Factor Evaluation Matrix:............................................................................. 8
9) Financial Ratios Comparison: .................................................................................. 9
10) SWOT Analysis: ................................................................................................. 12
11) SPACE MATRIX ................................................................................................. 14
12) BCG MATRIX ..................................................................................................... 15
13) Business Model Evaluation ................................................................................ 16
14) Blue Ocean Strategy .......................................................................................... 17
15) Strategic Recommendations............................................................................... 19
16) Conclusion .......................................................................................................... 20
References .................................................................................................................... 21

1) Introduction to the company and its background

National Foods is a globally recognized food manufacturing company committed to delivering
high-quality, nutritious, and wellness-oriented food products. With a strong emphasis on

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innovation and adherence to international standards, the company has established itself as a
trusted name in the food industry. While specific details about its founding year and
headquarters are not provided in the given context, National Foods operates with a clear focus
on enriching lives through its diverse portfolio of food solutions. The company’s dedication to
health, quality, and consumer satisfaction positions it as a leader in both local and international
markets.

2) Products and services of the company

National Foods offers a wide range of food products designed to meet the evolving needs of
consumers. Key offerings include:

• Packaged Food Products: This category includes sauces, spices, ready-to-cook meals, and
ready-to-eat options, catering to convenience without compromising on quality
• Nutritional and Wellness Foods: The company emphasizes fortified and health-conscious
products that align with global dietary guidelines, promoting overall well-being
• International Standard Compliant Foods: All products are manufactured under strict
quality control measures, ensuring compliance with international safety, hygiene, and
nutritional standards
• Joy-Driven Food Solutions: National Foods aims to enhance culinary experiences by
delivering products that bring happiness and satisfaction to consumers worldwide

The company’s product line reflects its mission to combine nutrition, taste, and convenience,
making it a preferred choice for health-conscious and time-strapped consumers alike

3) Analysis of the Vision and Mission statements

VISION STATEMENT EVALUATION

"Creating food that enriches the lives of people everywhere."

a) Clarity and Future Focus:

The vision is concise and clearly communicates the company’s long-term goal of impacting
lives globally through food

b) Inspiration:
By focusing on "enriching lives," the vision goes beyond mere food production, emphasizing
a deeper, purpose-driven approach

c) Global Reach:

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 The use of "everywhere" underscores the company’s ambition to have a worldwide
presence and influence

STRENGTHS:
• Motivational and aspirational, appealing to both consumers and employees
• Broad enough to allow for diversification while staying true to the core objective

AREAS FOR IMPROVEMENT:

• Could include a timeframe or specific milestones to make the vision more measurable

MISSION STATEMENT EVALUATION

"We will achieve our vision by designing and manufacturing food

and related products, conforming to international standards and
guidelines for nutrition, health, wellness and quality, bringing joy
and happiness to people everywhere."

Using the 9 Essential Components of a Mission Statement, detailed analysis is as follows:

a) Customers:
Implicitly mentioned ("people everywhere") but could specify target demographics (e.g.,
families, health-conscious individuals)

d) Products or Services:
Clearly outlined ("designing and manufacturing food and related products")

e) Markets:
Global focus ("everywhere") is evident, but regional specifics could enhance clarity

f) Technology:
Mentioned indirectly through "designing and manufacturing," but could elaborate on
innovative processes or R&D efforts

g) Concern for Survival, Growth, and Profits:

Implied through adherence to international standards, ensuring competitiveness and
sustainability

h) Philosophy (Values):
Strong emphasis on nutrition, health, wellness, quality, joy, and happiness

i) Self-Concept (Competitive Advantage):

Highlighted by compliance with international standards, positioning the company as a
leader in quality and safety

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j) Concern for Public Image:
Focus on joy and wellness enhances brand reputation and consumer trust

k) Concern for Employees:

Not explicitly mentioned; could include commitments to employee well-being or
development

STRENGTHS:
• Comprehensive coverage of key components, particularly in products, values, and markets
• Aligns well with the vision, providing a clear roadmap for achieving it

AREAS FOR IMPROVEMENT:

• Customer Focus (Target Market): The mission vaguely mentions “people everywhere,”
which lacks clarity on the specific customer segments the company serves. A strong mission
should directly acknowledge who the core customers are (e.g., families, health-conscious
individuals, global diaspora, etc.)
• Self-Concept (What Sets the Company Apart): The statement does not highlight what
differentiates National Foods from its competitors (e.g., quality leadership, heritage,
innovation, or halal-certified authenticity). A distinct self-concept helps communicate the
brand's unique identity and competitive edge
• Internal Stakeholders (Employees): There is no mention of employees or internal culture.
An effective mission should acknowledge the importance of the workforce as a core enabler
of strategy, innovation, and growth

RECOMMENDATIONS FOR NATIONAL FOODS:

Enhance Mission Statement by:

• Specify target customer groups (e.g., "health-conscious families")
• Include commitments to employee development and sustainability practices
• Add a sentence about innovation or technology in food production

Refine Vision Statement by:

• Consider adding a measurable goal (e.g., "by 2030")

Alignment with Strategic Goals:

• Ensure both vision and mission are reflected in corporate strategies, such as R&D
investments or community initiatives

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4) External Factor Evaluation (EFE) Matrix – National Foods

Opportunities Weight Rating Weighted Score

Growing demand for affordable packaged food amid
14.0% 4 0.56
economic hardship
Expansion of e-commerce and online grocery platforms 10.0% 3.5 0.35
Government incentives to boost food exports 10.0% 2 0.2
Youth-driven demand for convenient, ready-to-cook meals 12.0% 3.5 0.42
Growing international demand for ethnic/spicy food 7.0% 3 0.21
Rising adoption of digital payments in retail 7.0% 3 0.21
Threats Weight Rating Weighted Score
Competitive rivalry (Shan, Laziza, etc.) 10.0% 2 0.2
Changing customer preferences (health trends) 7.0% 1 0.07
Inflation and raw material cost fluctuations 7.0% 2 0.14
Government regulations and taxation policies 7.0% 2 0.14
Threat of substitutes and private labels 4.0% 2 0.08
Global economic volatility 5.0% 2 0.1
TOTAL 100.0% 2.68
Interpretation:
• A score of 2.68 reflects a moderate to above-average response to external opportunities
and threats
• National Foods is positioned well to leverage market trends but must keep an eye on rising
competition and costs

5) CPM – Competitive Profile Matrix

National Foods Shan Foods Habib Oil
Critical Success Factors Weight
Rating Score Rating Score Rating Score
Brand Reputation & Heritage 15% 4 0.6 4 0.6 3 0.45
Product Range & Innovation 12% 4 0.48 3 0.36 2 0.24
Distribution Network 10% 4 0.4 4 0.4 3 0.3
Marketing & Advertising 10% 3 0.3 4 0.4 2 0.2
Price Competitiveness 8% 3 0.24 3 0.24 4 0.32
Export Potential 8% 4 0.32 3 0.24 2 0.16
Product Quality 10% 4 0.4 4 0.4 3 0.3
Supply Chain Efficiency 7% 3 0.21 4 0.28 3 0.21
Packaging and Presentation 5% 3 0.15 4 0.2 3 0.15
Customer Loyalty 7% 4 0.28 3 0.21 2 0.14
Regulatory Compliance 4% 4 0.16 4 0.16 3 0.12
Technological Adoption 4% 3 0.12 3 0.12 2 0.08
TOTAL 100% 3.66 3.61 2.67

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Interpretation:
• National Foods and Shan Foods are close competitors, with National slightly ahead due to
broader innovation, export activity, and customer loyalty
• Habib Oil (in the spice/foods segment) trails due to limited product diversity and lower
investment in innovation and advertising

6) Industry Overview: Packaged Food & Spice Sector in Pakistan

The packaged food and spice industry in Pakistan is a significant segment of the Fast-Moving
Consumer Goods (FMCG) sector, catering to both domestic and international markets. The
industry is characterized by a mix of branded and unbranded players, with branded products
gradually gaining more consumer trust due to quality assurance and convenience.

KEY PLAYERS AND MARKET SHARES

• Overall Spice Market

Around 80% is unbranded loose spices — these are sold by weight in local shops without
packaging, often cheaper and unregulated.
Around 20% is the branded segment — which includes both plain branded spices and recipe
mixes.

• Branded Segment
National Foods Limited: A leading player with a 49% share in recipe mixes and 10-12% in
plain spices, making it the market leader in the branded spice segment.
Shan Foods: Holds a 41% share in recipe mixes and 8% in plain spices, positioning it as a
strong competitor in the branded spice market.
Mehran Foods, Ahmed Foods, and Habib Oil Mills: These companies have notable presences
but hold smaller market shares compared to National and Shan.

The spice industry in Pakistan has been experiencing robust growth, with an annual growth rate
exceeding 50%. However, it's important to note that 80% of the market is still dominated by
unbranded loose spices, indicating significant potential for branded products to capture more
market share.

7) Porter's Five Forces Analysis: Pakistani Packaged Food Industry

I) Competitive Rivalry – High

o The market is intensely competitive, with major players like National Foods and Shan
Foods vying for dominance.
o The presence of numerous regional and unbranded competitors intensifies the
competition.

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 o Brand loyalty and product differentiation are crucial for maintaining market position.

II) Threat of New Entrants – Moderate

o While the FMCG sector has relatively low entry barriers, establishing brand recognition
and distribution networks requires significant investment.
o New entrants may find it challenging to compete with established brands on quality and
trust.

III) Bargaining Power of Suppliers – Moderate

o Suppliers of raw materials like spices and packaging materials have moderate power due
to the availability of multiple sourcing options.
o However, fluctuations in raw material prices can impact production costs.

IV) Bargaining Power of Buyers – High

o Consumers have access to a wide range of products and brands, increasing their
bargaining power.
o Price sensitivity and brand switching are common, compelling companies to maintain
competitive pricing and quality.

V) Threat of Substitutes – High

o The availability of unbranded loose spices, homemade mixes, and alternative seasoning
products poses a significant threat.
o Consumer preference for traditional cooking methods can also impact the demand for
packaged products.

The Pakistani packaged food and spice industry is dynamic and competitive, with National
Foods leading in market share and revenue. The industry offers substantial growth
opportunities, especially in converting consumers from unbranded to branded products.
However, companies must navigate challenges such as intense competition, price
sensitivity, and the threat of substitutes. Strategic focus on quality, innovation, and
customer engagement will be key to sustaining and enhancing market position.

8) Internal Factor Evaluation Matrix:

Weighted
Strengths Weight Rating
Score
Strong brand presence in the food industry 0.10 4 0.40
Export sales growth (↑ 36.3%) 0.08 4 0.32
Significant cost optimization in logistics 0.07 3 0.21
EBITDA margin growth to 11.1% from 6.6% 0.10 4 0.40
Solid improvement in working capital 0.06 3 0.18

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 Improved automation in operations 0.05 3 0.15
Increased digital presence & e-commerce expansion 0.05 3 0.15
Expansion in international markets (KSA, UAE, UK) 0.06 3 0.18
TOTAL 0.60 1.99
Weighted
Weaknesses Weight Rating
Score
Net profit decline of 42% YoY 0.10 1 0.10
Rupee devaluation impact on imports 0.08 2 0.16
High finance costs due to interest rates 0.07 2 0.14
Vulnerability to raw material price volatility 0.06 2 0.12
Over-reliance on local market (limited diversification) 0.05 2 0.10
Complex regulatory and tax environment 0.04 2 0.08
TOTAL 0.40 0.70

Total Weighted Score: 2.69 / 4.00

This score indicates a moderately strong internal position, though the company must address
profitability and cost management challenges.

9) Financial Ratios Comparison:

Metric FY24 FY23 FY22
Gross Profit Ratio 27.30% 28.30% 28.50%
Net Profit Margin 3.20% 5.90% 6.00%
Return on Equity 16.10% 28.40% 28.50%
Earning Per Share 8.20% 13.60% 10.40%
Debt to Equity Ratio 44.10% 42.90% 39.40%
EBITDA Margin 9.90% 11.00% 11.50%
Annual Sales Growth 34.30% 41.30% 31.60%

RATIO ANALYSIS:

I) Gross Profit Ratio

Year Ratio
2024 27.30%
2023 28.30%
2022 28.50%

Trend: Gradual decline over the three years.

Comments:
The gross profit ratio has dropped by 1.2 percentage points over the three years, reflecting

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increased cost of goods sold (COGS), possibly due to rising raw material prices, import costs, or
currency depreciation. Despite strong sales growth, the company faces margin pressures at the
production level, signaling the need for better procurement efficiency or pricing strategies.

II) Net Profit Margin

Year Ratio
2024 3.20%
2023 5.90%
2022 6.00%

Trend: Significant drop from 6.00% to 3.20%.

Comments:
A steep decline in net profit margin indicates increased operating or finance costs, or a reduction
in other income. The disproportionate fall compared to gross profit suggests that non-
operational costs (e.g., interest, taxes, admin expenses) have eroded bottom-line profitability.
Strategic cost control is needed to protect net income.

III) Return on Equity (ROE)

Year ROE
2024 16.10%
2023 28.40%
2022 28.50%

Trend: Sharp drop in 2024 after two strong years.

Comments:
The fall in ROE signals a reduced ability to generate profits from shareholders’ equity. This may
result from lower net income or a rise in equity base without corresponding returns. The drop is
concerning and reflects declining overall efficiency in capital utilization.

IV) Earnings Per Share (EPS)

Year EPS (Rs.)

2024 8.20
2023 13.60
2022 10.40

Trend: EPS dropped significantly in 2024 after peaking in 2023.

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Comments:
The decline mirrors the trend in net profits. Lower EPS could disappoint investors and signals
weakened profitability. It is important to monitor how the firm plans to rebound through
strategic initiatives or cost efficiencies.

V) Debt to Equity Ratio

Year Ratio
2024 44.10%
2023 42.90%
2022 39.40%

Trend: Slight increase in leverage over three years.

Comments:
The increasing debt-to-equity ratio shows that the company is relying more on debt financing.
While not alarming, continued rise could increase financial risk, especially with rising interest
rates or currency depreciation. Management should ensure the debt is being used productively.

VI) EBITDA Margin

Year Margin
2024 9.90%
2023 11.00%
2022 11.50%

Trend: Gradual decline over three years.

Comments:
Declining EBITDA margin indicates pressure on core operating profitability. It reflects that
growth in operating expenses is outpacing revenue increases. To reverse this, the company needs
better cost optimization, productivity gains, or pricing strategies.

VII) Annual Sales Growth

Year Growth
2024 34.30%
2023 41.30%
2022 31.60%

Trend: Exceptionally strong but slightly tapering growth.

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 Comments:
Sales growth has remained robust, demonstrating strong demand and effective distribution
strategies. However, without a matching improvement in profitability, this could indicate that
growth is volume-driven but not margin-accretive. Focus should now shift from top-line to
bottom-line growth.

SUMMARY OF FINANCIAL RATIOS COMPARISON:

Aspect Performance Comments

Revenue Growth Strong Needs to be translated into stronger net profits.
Profit Margins Declining Indicates cost pressure and reduced operational efficiency.
Return on Equity Declining Lower profitability and possibly increasing equity base.
Manageable but needs monitoring to avoid increased
Leverage Rising
financial risk.
EBITDA Margin Falling Suggests operational inefficiencies or lack of pricing power.
EPS Volatile Earnings weakness may affect investor sentiment.

Recommendations:
• Cost Optimization: Tighten operational and administrative expenses to stabilize margins.
• Margin Management: Focus on profitable product lines, reprice low-margin items.
• Debt Management: Ensure that borrowed funds are generating returns above cost of
capital.
• Shareholder Value: Improve ROE and EPS to restore investor confidence.
• Strategy Shift: Move from volume-driven growth to margin-enhancing growth.

10) SWOT Analysis:

STRENGTH WEAKNESS
1. Strong Brand Recognition:
NFL is a well-established brand in Pakistan
and internationally.
1. Dependence on Imported Raw Materials:
2. Diverse Product Portfolio:
High reliance on imports like tomatoes and
NFL has expanded from spices to multiple
plums affecting margins.
food categories like pickles, ketchup, and
2. High Debt Servicing: Rising interest rates
desserts.
increased the finance cost burden
3. Strategic Retail Partnerships:
significantly.
Walmart collaboration enhances U.S. market
3. Cost Pressures: Higher raw material and
access
distribution costs impacted the bottom line.
4. Innovative marketing:
Successful digital campaigns like (“Nayi Soch
Ke Naye Zaiqe”, “Zaika Jahan, National
Wahan" etc.)

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 OPPORTUNITIES THREATS
1. E-commerce Growth: Increasing online 1. Economic Instability: Inflation, currency
grocery shopping offers a channel for direct- devaluation, and economic slowdowns in
to-consumer strategies. Pakistan could hurt consumer spending.
2. Expansion in Other Prodcuts: 2. Competitive Pressure: Increasing
Expansion in Other Product Categories competition from local and multinational
(Frozen Ready-to-Eat Meals, Frozen Breakfast FMCG players.
items, etc.) 3. Regulatory and Trade Barriers:
3. Penetrate Foodservice: Compliance challenges in foreign markets
Supply spices, condiments, and bulk food
solutions to hotels, restaurants, airlines, and
cafeterias.

SO STRATEGIES ST STRATEGIES

1. Use strong brand to maintain consumer

1. Leverage strong brand to drive e-commerce
loyalty during economic instability. (S1,T1)
direct-to-consumer expansion. (S1,O1)
2. Use innovative marketing to fight competitive
2. Expand diverse product range into frozen
pressure (S4,T2)
foods (S2,O2)
3. Use retail partnerships to overcome
3. Utilize Walmart partnership to penetrate
regulatory/trade barriers. (S3,T3)
foodservice. (S3,O3)

SW STRATEGIES WT STRATEGIES

1. Develop local sourcing to reduce import risk

1. Reduce import reliance by supplying to local
and manage trade barriers. (W1,T3)
foodservice. (W1,O3)
2. Diversify raw material sources to reduce
2. Fight cost pressures by launching high-margin
import dependence and beat competitive
frozen products. (W3,O2)
pressure. (W1,T2)
3. Use e-commerce and social media to reduce
3. Implement cost-saving initiatives to survive
distribution costs. (W2,O1)
economic downturns. (W3.T1)

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11) SPACE MATRIX

FINANCIAL STRENGTH ENVIRONMENT STABILITY

Return on Investment (ROI) 5 Rate of Inflation -4
Leverage 3 Technological Changes -3
Liquidity 3 Competitive Pressure -4
Cash Flow 2 Price Elasticity of Demand -5
Working Capital 3 Barriers to entry into market -3

Average 3.2 Average -3.8

COMPETITIVE ADVANTAGE INDUSTRY STRENGTH

Market Share -2 Growth Potential 5
Product Quality -3 Financial Stability 5
Customer Loyalty -3 Ease of Entry into Market 4
Control over suppliers and Distributors -2 Profit Potential 4
Resource Utilization 5
Average -2.5 Average 4.6

y-axis = - ES + ( + FS) = -3.8 + (3.2) = -0.6

x-axis = - CA + ( +IS) = -2.5 + ( +4.6) = 2.1

SPACE MATRIX DIAGRAM

F
S
Conservative Aggressive

C IS
A

Defensive

Competitive
E
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S
RECOMMENDED STRATEGIES IN COMPETITIVE QUADRANT

• Market Penetration: Sell more existing products to current markets

• Product Development: Launch new or improved products.
• Market Development: Enter new regions, cities, or countries.
• Horizontal Integration: Acquire or partner with competitors.

12) BCG MATRIX

Quadrant Meaning
Stars High Growth + High Market Share
Cash Cows $ Low Growth + High Market Share
Question Marks? High Growth + Low Market Share
Dogs Low Growth + Low Market Share

PRODUCT CATEGORIES OF NATIONAL FOODS LIMITED

Market
Product Category Market Share Notes
Growth
Spices and Recipe
High Growth High Market Share Core business, leading brand
Mixes
Pickles, Chutneys, Moderate Strong position but less fast
High Market Share
Pastes Growth growth
Snacks (Like Nimco, Competing against strong
High Growth Low Market Share
Chips) local brands
Jams, Sauces, Ketchup Moderate Moderate Market Competition with Mitchell’s,
Growth Share Shezan
Frozen Food (Ready- Big opportunity area but still
High Growth Low Market Share
to-cook Meals) small
Dessert Mixes Moderate Market
Low Growth Not expanding much
(Custards, Jellies) Share
BCG MATRIX FOR NATIONAL FOODS LIMITED
Category Placement Reason
Spices & Recipe
Star High Growth + High Market Share
Mixes
Pickles, Chutneys,
Cash Cow Low to Moderate Growth + High Market Share
Pastes
Snacks Question Mark High Growth + Low Market Share
Jams, Sauces, Moderate Growth but strong competitors, lower
Dog
Ketchup Market Share
Frozen Food Question Mark High Growth + Low Market Share
Dessert Mixes Dog Low Growth + Moderate Market Share

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13) Business Model Evaluation
National Foods Limited (NFL) operates with a robust, value-driven business model that
integrates product innovation, efficient distribution, and a culturally resonant brand identity.
This model enables the company to effectively address the needs of diverse customer segments
across domestic and international markets while maintaining operational and financial
sustainability. The business model is mapped across the following key elements:

I) Value Proposition:
NFL delivers traditional and authentic Pakistani flavors in a convenient and hygienic
packaged form. The brand emphasizes quality, trust, and consistency, which are core
decision factors in the food and culinary segment. By combining modern technology with
traditional recipes, NFL creates a unique value proposition that appeals to both heritage-
seeking consumers and contemporary households.

II) Customer Segments

The company serves a wide variety of customer groups:
o Urban middle- and upper-class households in Pakistan
o Pakistani expatriates in North America, the Middle East, and the United Kingdom
o The hospitality industry, including hotels, restaurants, and caterers (HORECA)
o Price-sensitive rural consumers through economy packs and sachets
o Young professionals and students who demand convenience-based products

III) Channels
NFL uses a multichannel approach:
o General trade and traditional retail (kirana stores)
o Modern trade channels (supermarkets such as Imtiaz, Metro, Carrefour)
o E-commerce platforms including Daraz, Pandamart, and its own direct-to-consumer
platform
o Export partnerships and distributors for global markets, including listings in Walmart
(North America)

IV) Customer Relationships

NFL invests in maintaining brand loyalty through:
o On-pack promotions and seasonal offers
o Cooking guides, YouTube tutorials, and recipe contests
o Influencer marketing and social media engagement
o Customer service via call centers and social media chatbots

V) Revenue Streams
o Retail sales from domestic markets
o Export sales and foreign currency earnings
o Institutional sales to restaurants and catering services
o Online sales through digital platforms and bulk e-commerce orders

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VI) Key Activities
o Research and development for new products and formulations
o Quality control and compliance with global food safety standards
o Branding, marketing, and sales campaigns
o Supply chain and logistics optimization
o Export regulatory alignment and certification processes

VII) KEY RESOURCES

o Brand equity and consumer trust built over decades
o Manufacturing plants in Karachi and Nooriabad
o Distribution and warehousing networks across Pakistan
o Proprietary spice blends and culinary expertise
o A skilled team in food science, supply chain, and marketing

KEY PARTNERSHIPS
o Retail and distribution partners across Pakistan and overseas
o Raw material suppliers and local farmers
o Packaging solution providers
o Digital partners for e-commerce and marketing
o Regulatory and certification bodies

COST STRUCTURE
o Raw materials including local and imported spices
o Packaging and transportation costs
o Salaries and employee benefits
o Marketing and promotional expenses
o Export logistics and duties

Conclusively, National Foods Limited’s business model enables sustainable growth by

harmonizing consumer expectations with operational excellence and global reach.

14) Blue Ocean Strategy

NATIONAL KITCHEN CLUB: A PERSONALIZED CULINARY LIFESTYLE PLATFORM
National Foods Limited can unlock new demand and break free from intense price-based
competition by formulating a Blue Ocean Strategy that creates an uncontested market space.
Based on the Blue Ocean tools taught in the course—namely the Strategy Canvas, the Four
Action Framework, and the Six Principles—this strategy proposes a shift from competing in the
traditional spice and recipe mix segment to offering a differentiated and holistic cooking
lifestyle experience under a new initiative: the National Kitchen Club (NKC).
I) Strategic Goal
To transition from a conventional packaged food company into a digital-first culinary

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 lifestyle brand that delivers experiential, tech-integrated, and culturally resonant value to
both existing and non-customers.

II) Four Action Framework (ERRC Grid)

Action Description
Passive, generic recipe marketing; reliance solely on price
Eliminate
promotions; limited consumer engagement touchpoints.
Dependence on third-party retail distribution; complexity in product
Reduce
packaging and ingredient lists.
Brand visibility as a culinary educator; personalization in product
Raise
offerings; trust and hygiene in meal preparation experiences.
National Kitchen Club – an interactive, digital and physical platform
Create offering subscription-based chef kits, regional cooking experiences,
and a digital cooking assistant app.

III) Strategic Canvas

The proposed value curve of National Kitchen Club would deviate from existing food
companies by:
• Increasing buyer utility through curated regional chef kits and mobile-based meal
planning tools.
• Reducing the complexity of at-home desi cooking with pre-portioned kits and on-
demand cooking support.
• Creating new dimensions of culinary experience via storytelling, personalization, and
direct engagement with home chefs and influencers.
• Offering integrated services such as skill-based online classes, nutritional planning, and
cultural discovery, none of which are part of the conventional FMCG experience.

IV) Target Non-Customers

1. First Tier – Existing customers of National Foods who find traditional recipes too
complex or time-consuming and may shift to restaurants or meal delivery apps.
2. Second Tier – Non-users who opt out of using spice mixes due to unfamiliarity, health
concerns, or a preference for pre-cooked meals.
3. Third Tier – Young professionals, expats, or students abroad who lack confidence in
cooking traditional meals and currently rely on fast food or Western kits.

V) Strategic Sequence
1. Buyer Utility – High (adds convenience, personalization, trust, and inspiration to
everyday cooking).
2. Price – Moderately premium but accessible through subscription pricing and tiered chef
kits.
3. Cost – Manageable through existing sourcing, packaging, and manufacturing
capabilities.

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 4. Adoption – Minimal hurdles; requires consumer education and digital awareness
campaigns.

VI) Execution Built into Strategy

• Engage stakeholders through pilot testing of Chef Boxes in urban centers and among
influencer communities.
• Implement fair process: involve employees, sales teams, and supply chain partners in
the design and delivery of the new platform.
• Build trust and commitment via internal recognition programs, innovation contests, and
public campaigns highlighting consumer transformation stories.

VII) Strategic Outcome

The National Kitchen Club creates a new value curve for National Foods by blending
emotional connection, digital convenience, and cultural relevance. It eliminates the
industry’s overemphasis on retail-based competition and replaces it with a model rooted in
experiential engagement and culinary empowerment.

15) Strategic Recommendations

Based on the comprehensive analysis conducted throughout this report, the following strategic
recommendations are proposed:

VIII) Launch of Ready-to-Eat and Frozen Food Lines

NFL should diversify into the ready-to-eat (RTE) and frozen food segments with products
such as frozen parathas, kababs, and microwaveable biryanis. These products align with
urban consumption trends and add convenience for working professionals and nuclear
families.

IX) Digital and E-commerce Transformation

Develop an integrated digital commerce platform offering direct-to-consumer delivery,
loyalty programs, personalized bundles, and subscription models. Leveraging q-commerce
channels (Pandamart, Airlift) can increase availability and convenience in urban markets.

X) Rural Penetration via Economy Packs

Introduce smaller and affordable SKUs of high-demand products to target rural and low-
income households. Expand rural distribution networks and leverage mobile carts and
micro-retailers for last-mile access.

XI) Brand-Led ESG and Sustainability Initiatives

Invest in biodegradable packaging and promote “Farm to Flavor” transparency through QR-
coded traceability systems. National Foods should position itself as a leader in
environmentally sustainable packaged food products.

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XII) Establishment of Culinary Innovation Hub
Create an in-house innovation center to experiment with new flavor profiles, health-
oriented products, and fusion cuisine. Encourage internal talent through innovation
challenges, and pilot new concepts with selected consumer panels.

16) Conclusion
National Foods Limited (NFL) operates in a fast-evolving and highly competitive fast-moving
consumer goods (FMCG) landscape, both locally and internationally. The company’s long-
standing presence in the food processing sector, coupled with a growing need for innovation,
convenience, digital integration, and sustainability, presents both significant opportunities
and complex challenges. In this context, strategic management plays a pivotal role in ensuring
the company’s long-term viability and market leadership.

Through a detailed application of strategic management frameworks—including SWOT analysis,

Internal and External Factor Evaluation (IFE/EFE) Matrices, Competitive Profile Matrix (CPM),
SPACE Matrix, and BCG Matrix—this report has systematically identified National Foods
Limited’s internal competencies, market positioning, and external threats and opportunities.
The analysis reveals that while the company possesses considerable strengths in brand equity,
product variety, and operational scale, it must urgently address rising competition, changing
consumer preferences, and increasing pressure to adopt environmentally and digitally
sustainable business practices.

The proposed business model enhancement and the development of a Blue Ocean Strategy,
particularly through the conceptualization of the “National Kitchen Club,” represent a shift
from a traditional product-centric organization to a digitally enabled culinary lifestyle brand.
This strategic transformation positions National Foods to deliver personalized value, strengthen
emotional and experiential engagement with consumers, and open new revenue streams—
particularly among tech-savvy, urban, and international audiences. The Chef Box subscription
model, culinary pop-up events, and digital meal-planning tools offer a differentiated customer
experience that is currently unmet in the Pakistani packaged food sector.

Strategic recommendations outlined in this report—such as diversification into the frozen and
ready-to-eat food categories, deepened rural market penetration through economy packs,
development of a robust e-commerce infrastructure, environmentally sustainable packaging
innovations, and investment in an internal culinary innovation hub—are rooted in analytical
insight and practical feasibility. These initiatives are not only aligned with the company’s vision
for future growth but also directly respond to the challenges and opportunities identified in
the external environment.

In conclusion, if these strategies are effectively implemented, National Foods Limited is well-
positioned to consolidate its leadership in the domestic market while expanding its footprint
in regional and international markets. The company has the potential to transform from a

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legacy spice and recipe mix brand into a forward-thinking, globally relevant food solutions
provider. Ultimately, strategic execution grounded in innovation, digitalization, customer-
centricity, and sustainability will be the key to ensuring the company’s continued relevance
and success in the years to come.

References
• National Foods Limited Annual Reports (2022–2024) – www.nfoods.com
• Pakistan Bureau of Statistics (PBS) – Food Industry Insights
• State Bank of Pakistan – Economic and Inflationary Trends
• Michael Porter’s Five Forces Framework – Harvard Business Review
• Strategic Management Textbook – Fred R. David (15th Edition)
• Nielsen Market Research Reports – FMCG in Pakistan
• Euromonitor International – Packaged Food Industry Outlook (2023)
• McKinsey & Co. – Emerging Markets Strategy Reports
• Interviews with mid-level managers (Sales and Marketing) at National Foods, April 2025
• Harvard Business School Case Studies – Blue Ocean Strategy (Kim & Mauborgne)

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