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CASE STUDY (AHMED FOOD INDUSTRIES)

CASE STUDY (AHMED FOOD INDUSTRIES)

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Published by kashanpirzada
CASE STUDY (AHMED FOOD INDUSTRIES)
CASE STUDY (AHMED FOOD INDUSTRIES)

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Published by: kashanpirzada on Jan 24, 2011
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05/06/2013

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CASE STUDY (
AHMED
 
FOOD
 
INDUSTRIES
)
One of the pioneers in food industry of Pakistan,
Ahmed
 
foods
started their business way back in the fifties on a small scale. They were manufacturers of traditional sweets(mithai). They owned a manufacturing unit in site industrial area and initially that wastheir selling out let as well. The owner 
Syed
 
Zamiruddin
 
Ahmed
, who hailed fromDelhi, realized that there was a big market for traditional
HALWA
, provided they were packed and presented nicely. He took the initiative and Ahmed foods marketed tin packed
HABSHI
 
HALWA
,
SOHAN
 
HALWA
&
KARACHI
 
HALWA
. The launching of tin packed sweets proved a great success and by the start of the 60’s Ahmed foods had become a fairly renowned name through out the country. Their only competitor in tin packed sweets was
FRESHWELL
 
SWEETS
.Zamiruddin Ahmed decided to diversify the product range. Ahmed foods introduced
AHMED
 
JAMS
,
JELLIES
&
MARMALAIDS
. There were already two wellestablished companies manufacturing the same range of products, one was
MITCHELLS
& the other 
SHEZAN
. The management of Ahmed Foods emphasized onquality and with in a short span of time they were serious competitors of Mitchells andShezan. Ahmed Foods further diversified their product range when they decided tocompete with the best selling local brand
ROOH
 
AFZA
by introducing
NAURUS
. Themarketing campaign of Ahmed Foods was really impressive; especially the
TV
advertisement of NAURUS (
bhool
 
Na
 
Jana
 
phir
 
papa
 
Naurus
 
le
 
key
 
ghar
 
ana
) wasvery popular. NAURUS was giving a tough time to ROOH AFZA. The success of  NAURUS was followed by
AHMED
 
MASALA
 
JAT
(RED CHILLIES, HALDIPOWDER ETC)By the end of the 70’s Ahmed Foods were not confined with in the local boundaries, theywere into the
MIDDLE
 
EAST
market as well as
ENGLAND
. One of their major competitors SHEZAN were passing through a lean phase in the local market due to anissue pertaining to religion but their export business was good.The year 
1970
witnessed the emergence of 
NATIONAL
 
FOODS
, owned by
WAQAR HASAN
a former 
TEST
 
CRICKETER 
. National Foods started out very systematicallyand they were destined to become market leaders in the years to come. However AhmedFoods despite increasing competition were still a force to reckon with. Their local businesses as well as exports were thriving.The slump in their business started when ZAMIRUDDIN AHMED passed away in
1988
.He was the master mind behind all their successes. Zamiruddin Ahmed had controlled theorganization in a very centralized manner. He was one and the only authority. From production & finance to selling & marketing his word was taken as
LAW
. Since AhmedFoods was a family concern, his sons (ZAFAR & ZIA) took charge of the organization.But they were far behind their father in business and administrative skills. Keeping asidethe ethical issue of right or wrong, Zamiruddin Ahmed had resisted the pressure of theworkers and never allowed a labor union in Ahmed Foods. But his sons couldn’t with
 
stand the pressure of the workers and succumbed to their demands. For the first timesince its inception a Labor Union was formed in Ahmed Foods in
1992
. From that pointonwards the management became weaker and employees gained power.To make the matters worse a cold war started between the two brothers. Both of them hada desire to gain complete command. They were not willing to share the power, bothwanted complete dominance over the other. Due to internal rifts business started toshrink. The differences among Zafar and Zia developed to an extent that ultimately they parted ways. Ahmed Food was split in two separate business units. Zafar took charge of Ahmed Foods inclusive of full product range except
NAURUS
which was taken over byZia.
AHMED
 
FOODS
today are merely a shadow of their glorious past. They have lost thefooting and the image that they had held over such a long period of time in the localmarket. Employees are unable to put in their best efforts because of lack of interest fromthe management. There are no proper marketing efforts. There are so many surplusemployees unwilling to work. Also there is lack of motivation among the workers sincethere is no visible career growth. The management could not retain people who wereexperts in food industry. The most competent people left Ahmed Foods and joined
National
 
Foods
&
Shan
 
Foods
. Last but not the least; Ahmed Foods forgot the basic principle that quality is the key to success. The quality, which was once their hallmark deteriorated and owing to that they lost their export business as well. Both
National
and
Shan
are excelling in export market. Another negative factor that went against them wasmiscommitments both with customers and employees.
NAURUS
 
FOODS
on the other hand have fared better despite initially having just one product (NAURUS SYRUP). When Naurus was separated from Ahmed they had just onecompetitor in red syrup and that was the very well known ROOH AFZA. But in 1995
QARSHI
 
DAWA
 
KHANA
launched their red syrup
JAM
-
E
-
SHIRIN
in the marketwith a bang. The taste & quality of JAM-E-SHIRIN was refreshing and they marketed itwith intensity. They had a very expensive
TV
advertisement featuring celebrities
NADEEM
&
ATIQA
 
ODHO
which was telecast daily just before the
KHABAR NAMA
for continuously 6 months (there were no private channels at that time). Their  promotional efforts made an impact and JAM-E-SHIRIN captured a significant marketshare. The current market share of the 3 competitors is as follows.1-
ROOH
 
AFZA
 
48
%2-
JAM
-
E
-
SHIRIN
 
35
%3-
NAURUS
 
17
% NAURUS FOODS realized that it won’t be possible to survive on the basis of just one product decided to diversify their product range. They have now introduced NAURUS
JAMS
,
JELLIES
, and
KETCHUPS
&
MASALA’S
. The competition is stiff but themanagement of NAURUS FOODS is determined to compete and excel. The staff at NAURUS is more satisfied and motivated as compared to AHMED FOODS.

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