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Identifying the suitability and feasibility for Norfolk Ltd to enter

the Ready to eat market in Sri Lanka


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Content Page No

Task: The Research Proposal

1. Acknowledgements 3

2. Introduction to the Company: Norfolk (Pvt) Ltd 4-5

3. The Scope of The Study 6

4. Objectives of this research and Hypothesis Statement 7

5. Planned Areas of Assessment During the Study 8

6. The different methodologies that could be used 9-10
to address the research objective

7. Sampling Methods & Time Frame requirements 11

8. Analysis and Literature review 11-12

9. A Draft Questionnaire 14-18

10. Bibliography 19

11. Abbreviations Used On this Text 20


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I have taken efforts in preparing this Research Project Proposal. However, it would not have been
possible without the kind support and help of many individuals. I would like to extend my sincere
thanks to all of them.
I hereby would like to thank to my advisor/Lecturer, Mr. Tushanthan, for providing me with the
necessary guidance throughout the period in which I was involved in preparing this Research
Proposal, and hence I would like to thank him for all his useful advices and recommendations.
I am highly indebted to Norfolk (Pvt) Ltd or providing me with necessary information regarding the its
annual reports & also for their support in giving me a few insights about the industry.
Last but not least I wish to avail myself of this opportunity, I wish to express a sense of gratitude and
Respect for BCAS City Campus Administrative team for their manual support, strength, help and for
everything they provided me with while I was undertaking my research.


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Norfolk (Pvt) Ltd (A fully owned subsidiary of Expolanka Holdings PLC) or
shortened as NFL is a Privately owned Company with limited liability
incorporated and domiciled in Sri Lanka on the 20
day of September 1990.
Currently the ordinary shares of the company are under the control of Expolanka Holdings PLC which
is in return a listed conglomerate in the Colombo stock exchange (Sri Lanka). Known specially
throughout the Country as a leading poultry cum processed meat supplier, today NFL has been placed
as Sri Lankas youngest and most innovative and diversified poultry business enterprises.
NFL is committed to archive excellence in every spare of business activity it undertakes. Throughout
the years the firm has turned out to become an increasingly profitable, stable and growth oriented
model private sector entity.
Because of their commitment to archive and strive for excellence the entity has laid out three key
priorities which it up holds when dealing with all its stakeholders of the entity. They are,
Maintain the highest standards of ethics when dealing with all related parties.
Consolidate the Processed Meat production in the country with increased productivity
through value additions.
Be a pre-eminent supplier of quality animal products at affordable prices.
The Products and services of the company.
The principal line of business of NFL is centered around integrated poultry farming. The firms products
and services revolves around the integrated industry which consists activities such as , poultry
farming, poultry production, , processing and the marketing of its own branded Processed meat.

Norfolk Ltd. (2013). Norfolk Farms. Available:
review/performance_20123/index.htm [last accessed 03rd July 2014]

At present the company has just passed a significant year in the global business calendar. The
companys principle line of under taking is positioned in different geographical locations in the island,
where the risks and rewards attributed to each segment is different.
Production of its
own branded
chicken, 162.00,
Other chicken
45.00, 22%
production of its own
branded chicken
other chicken based
productions 2%
Production of its own branded chicken
Other Chicken based Production
Other Products

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Through the above pie chart, it is a clear fact that the entities main business undertaking is the
production and sale of its own branded chicken. The current production capacity of this segment
accounts to over 78% of the entire production of the company.
Because of the severe and adverse weather conditions, the company had to face a major setback in
the sector of production of day old chicks. However, the increased prices in the sector helped the
entity maintain its usual production capacity year after year.
Customer base
As a result of being the largest and state of the art producer of poultry products in the country, at
present the entities customers or clients can be categorized into three. The company has a steady
customer base which consists of whole sellers, retailers, and the end customer. The main reason for
having a good customer base is NFLs ability to retain its customers over the years.
The Companys position in the market
The NFL group has taken the no. 1 position as the largest broiler day old chicks provider in the
country. This admirable position has been archived through planned, organic growth. As a result of the
firms continuous commitment to research and improve in its field we see that at present NFL provides
research facilities to the entire research industry.
In terms of revenue its position in the market is as follows.

Norfolk Ltd. (2013). Norfolk Farms. Available:
review/performance_20123/index.htm [Last accessed 03rd July 2014.]

An overview of the CSR of the company.
At present the companys operational facility-farms, factories and hatchery-are configured to function
with as little environmental impact as possible. In particular, NFL has taken appropriate measures to
minimize environmental pollution from waste disposal. The chicken-processing factory, for example, is
equipped with a modern Aqua water-treatment plant.
One of the most spoken CSR activities of the firm is the sponsorships which it provides to research
programs at several Sri Lankan universities and the Industrial Training Authority (NAITA), as a result
of the companys interest in eco friendly packaging, This proved the companys commitment to
adhere and cherish towards being more quality conscious of its products packagings, the innovative
packaging approach which it took is said to have helped the company strengthen its brand name
Year 2012 Year 2013
REVENUE ( Rs. Mn) 1,839,779 REVENUE ( Rs. Mn ) 2,064,259


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Should Norfolk (Pvt) Ltd enter the ready to eat product segment?
An idea to Work on a Research about ready to eat food industry and customer attitudes towards them
resulted from my previous experiences with a fast food market in reading about the Sri Lankan
Consumers user behavior and the magnificent Performance of Sri Lankan Poultry Companies. The Sri
Lankan Poultry market was exclusively occupied by independent raw meat suppliers for many years.
The Situation was changed in 2009 by an entrance of a Former Poultry manufacturer venturing into
the fast food industries chain by introducing a ready to eat meat product to the market. I realized that
there can be an establishment potential for another competitor in a field of fast food or processed food.
Thus, this thesis which is focused on Norfolk Ltd aims to investigate the possibility of an establishment
of a new product to the ready to eat segment in Sri Lanka by an existing poultry company.

As mentioned above in the present context of the poultry industry in Sri Lanka, more and more
females are assigning themselves into the working Population of the country. Today ready to eat
products are also called as fast-food and they come in innovative flavors, pocket-sized, and with an
affordable cost structure. For over the years, the poultry manufacturers are continuously improving
and innovating new ways in which the people described as easing there day to day chores. And today,
different brand of poultry products are emerging and competing in the field of ready to eat product
segment with innovative taste offerings.
The Sri Lankan poultry industry is already dominated by major local poultry suppliers within the context
of the local market. Based on the financial data provided in the Statement: Introduction to the
Company, Norfolk being one of the leading companies of Poultry Product suppliers in the country, has
enabled its self to penetrate deeply into the domestic market and thus it is enjoying domestic financial
success since (2009). The success that the company gained is not possible without the aid of different
product launching strategies. But in the present context in terms of innovative products & growth
Norfolk Ltd is enjoying less success among the masses of Sri Lanka
Therefore, the main focus of the research study is to focus on as to whether the firm should articulate
a new strategy in order to enter the ready to eat product segment which is dominated by its rival
Bairaha Farms PLC.
The current poultry industry in Sri Lanka is prone to stiff and tough competition. And as peoples lives
are changing due to change in lifestyle there is a need in companies to shift its traditional business
approach and focus on a broader context in order to sustain its self among its rivals. Hence this

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research will be performed in order to assess as to whether Norforlk Ltd should enter the ready to eat
product segment by way of a new product.
Future more the study will provide light to the company as to what consumers are looking for in a new
product and what needs to be addressed if they want to leap into the ready to eat food segment of Sri
The primary research done to assess the consumer behavior towards NF ltd Products was done on a
very small scale and limited to a sample size of just 20. Sri Lanka a diverse nation with gradations in
culture and habits may have an impact on the consumer behavior for NF Ltds products. Thus, the
research may also be conducted across different age limits of people, profession and income levels.

The research identified three main objectives that were expected to be achieved at the end of the
First is to identify the business strategy of the Norfolk Company in the Local or Domestic market.
Second objective is related to the first which regards on whether the company should enter the Ready
to eat Product segment through an innovative product in line with the application of its identified
business strategies in the Poultry industry.
The third is to serve as a valuable context in the literature of the Poultry Industry.
Growth and performance of poultry companies in Sri Lanka may change the lives of people
Growth and performance of poultry companies in Sri Lanka may not change the lives of
Based on the growth witnessed in poultry companies in Sri Lanka this research will predominantly
focus on the above two statements as to whether the changing lives of people are related to the
growth and performance of poultry companies in Sri Lanka, then examining whether Norfolk Foods
(Pvt) Ltd should enter the ready to eat food segment with a unique product will reveal correlations in
the growth patterns in the poultry industry to the changing lives of people in the environment in which
NF Ltd operates
With regard to the above Hypothesis statement we could re-iterate the point that the dependent
variable in this statement is the changing lives of people and the independent variable in this
statement is performance of poultry companies in Sri Lanka


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The study provided certain question in the aim of achieving the adequate answers. The questions
presents the valuable pieces of information in creating a successful business and sustaining its
1. What are the common challenges or constraints that are available in the Poultry industry?

2. What are the strategies applied by Norfolk Ltd to prevent or lessen the impact of those
3. What is the current situation of Norfolk after the realization of the challenges?

4. Examine the general attitude which the potential customer has towards the entities product.

5. Asses how the entities current Products differs from its competitor and potential new ways of
improving it.

6. Based on the outcome of the research to Provide an outline plan to the company in the
launching a new product.

Assessing the attitudes of the current users towards Norfolks Products.
7. How often do you Buy Norfolk Products?
8. What do you think about the Companies Products?
9. Do you feel safe using ready to eat or processed products??
10. Do you think its convenient to use Norfolk Products rather than Cooking at home??

Current User navigation of the firms existing Products.
11 What are the most popular Products of Norfolk Ltd?
12 What do you think about the Norfolk Ltds Current Product offerings?
A comparison of the entities Products with its competitor bairaha farms
13 When compared with BF PLC what do you think about Norfolks Products?
14 Do you think that the competitor is offering a more and Enriched range of Products than
Norfolk Ltd?
15 When web sites are compared as a whole what do you think about the perception of on line/
internet banking


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Enhance features which could be bought into Norfolks Present offerings
16 What are the best features you think is used by best practice Poultry Companies?
17 Do you feel that the Firm should give an equal opportunity to all Poultry user segments in
society by launching innovative products which in return could be used based on their
individual requirements? Eg. House wives, Working Mothers, Teenagers
18 Do you feel that a new array of Products should be introduced by the firm in order for
consumer convenience?

The methodology used by the study is based on a email survey which would be carried out by the firm.
Through this method, the researchers can examine the different strategies they applied in different
situation and the success of those strategies as well as the weaknesses of those strategies. Also, the
email survey will allow the researchers to provide conclusion on what are the best applied strategy that
will be suitable to the business if it to launch an innovative product into the domestic market.

Quantitative Research.
Quantitative research can be defined as,
Research that is undertaken using a structured research approach with a sample of the population to
produce quantifiable insights into behaviors, motivations, and attitudes
LEVITT, R. et al. (1999) The reorganized Research Methodologies. 6th ed. Cheltenham: Stanley
Quantitative research is also known as the currency of research. Because this gives entities details
about opinion polls, about who prefers the entities products and offerings. For the purpose of
quantitative research Norfolk Ltd can use a large number of there day to day walk-in customers or it
would be carried out on the people who like the firms Facebook Social-Media Page or its twitter
Followers. And under this method they could measure the attitudes of each and every customer about
the entities products and Offerings. Using quantitative research as a starter will help Norfolk Ltd
identify their customers well and their User behavior well.
Quantitative Research Objectives.
1. How many customers have seen the Firms Products Current Product Offerings?
2. Quantify about how many individuals are aware about Norfolks Products.
3. Who do customers see as Norfolks main or Regional competitor?
4. How reputable is Norfolks competitors Product Offerings.


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Methodology in detail
On-line Mail survey
In this method there is no interviewer, this is the main difference between the methodologies which
was used above. In an on-line mail survey it puts a great level of importance on constructing an
accurate and proper questionnaire.
This is because in the present we see that as peoples life styles are continuously changing there is a
great importance in making a particular thing attractive in order to garner his or her attention. And the
next important thing is what kind of offerings will accompany it.
But this is method is considered to be a practical method because it helps an entity to reach a wider
amount of people in all geographical areas in the country. It also helps an entity to reach people in
rural as well as urban at the same cost.
Under this method a questioner will be e-mailed to selected members of the data base of Norfolks
Walk-in Customers or Twitter Followers. The particular mail survey will be done all on selected
members around the country. So for this e-mail survey a special recognition code will be used in order
to identify the responded.
Under this method individuals will be split into groups. Out of this group 120 individuals will be selected
for the survey. and each group will consist of as depicted below then the group will be categorized into
4 main groups as below.
Group 1 Group 2 Group 3 Group 4
5 5 5 5
(Table 01 Respondents framework)
This survey will include,
1. Males and females. (18-30)
2. People representing all kinds of professions.
This survey will be a personalized one and the draft survey form will be sent via email to a chosen
individual along an innovative cookery recipe which would be enclosed in pdf format and a 5%
discount voucher for any products that are sold at Norfolk Outlets.


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At first a draft of the survey will be handed over to the research team. Subsequently these survey
mails will be sent to the customers/chosen individuals of Norfolk Ltd. This survey is said to accompany
an innovative cookery recipe which would be enclosed in pdf format and a 5% discount voucher for
any products that are sold at Norfolk Outlets.
These respondents will be told to e-mail the completed survey inside 7 working days. It is expected
that there could be a responded rate of above this shows us that out of the 20 selected
individuals at least 15/17 individuals would respond to the above cause.
Reporting the relevant findings
No matter what the quality is of a said research undertaken, much is depended on the way the findings
of the result are communicated to the relevant audience. Each research undertaken by is considered
to be different in the approaches we adopt.
Norfolk Ltds research findings will be communicated to the marketing team by the last week of
November. As a review of this report a 45 minute presentation will be done by our research team .in
this oral presentation important aspect noted in the research with regard to where Norfolk needs
improvement will be notified to them.
After this process on the 3
week of September a final draft of the research findings, tabulated results
with inclusive of an electronic copy will be forwarded to commercial bank. In case the bank requires
any additional information they will be notified to contact the head of our research firm.
Our research team is told to meet with strict deadlines. As a result of it since the commencement of
the research the team and its head meet on every other day of the week. And on each session the
team meets up it does a review on the work carried out.

Norfolk Ltd applied their creation of the business strategy that is composed of four essential parts. The
company is very focus on the revenue stimulation and cost reduction within the Sri Lankan domestic
market. The companys focus is applied in delivering the strong growth within Sri Lanka which is an
emerging market. The third part of their strategy is to continue their efforts in innovation and delivering
the needs of the customers in terms of being a total solution provider by way of supplying quality
eatables. Norfolk also actively manages their present portfolio to maximize the returns on investment.


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The Poultry industry is usually composed of technological advances, including the development of the
Pre Cooked Products and new services and created a dramatic impact in the economy. The
competition in the Poultry industry gains the advantage in the scale and scope in the market entry. The
rapid growth of the competition is unpredictable due to the continuous development of food
technologies and changes. The business activity in the Poultry industry is also plagued by different
uncertainties and too much uncertainty and lack of international coordination can decrease the
confidence of business leaders and not beneficial in the atmosphere of the company.
In a research by Berger, S, (2001), Packaged food industry in the poultry sector has been lately
drawing criticism from Industry pundits and experts, for it has shelved its status of being a recession
proof Industry. It was only a few months back when the same pundits were going gung-ho about the
opportunities lying galore ahead of players in this Industry. It almost seemed packaged food had
evolved over the years from its status from are psychological need in Maslows hierarchy to aesthetic
needs of health and well being. The only chant heard around was about the forces of consumerism,
globalization and rising income levels in third world countries, which would be upholding the future of
this Industry high. However, it didnt take long for this recent recession to shed those claims and reject
those Profound theories.
Convenience is accompanied by attractive taste of the products for relatively low costs. In an in-depth
research conducted by Gore, A. (2000), Convenience of prepared food is crucial for customer today
thus these foods offer the ability to be quickly prepared food, which can be taken home or even taken
straight to ones home or locality without a need to go into the premises and sit and eat. Why
processed Foods Are So Successful) People want quick and convenient meals; they do not want to
spend a lot of time preparing meals, traveling to pick up meals, or waiting for meals in restaurants
because today as peoples lives get busier by the day they tend to come to a conclusion that Time =
In a book titled by De Silva, H., Samaranayake, M., and Kumar, P., (2012), While the Poultry industry
is large in terms of size, it is still at a nascent stage in terms of development. Out of Sri Lankas total
agriculture and food produce, only 2 per cent is processed. The highest share of the Sri Lankan
processed food is claimed by the Dairy sector, where 37 per cent of the total produce is processed, of
which 15 per cent is processed by the organized sector. As at present the organized processed meat
food manufacturing sector is relatively small, with only 3 players, who are not fully fledged in terms of
Poultry production but fledged in terms of meat processing units and numerous dairy processing units
at state and district levels.
Therefore Norfolk identifies the evolving challenges in the macro-economic environment. Within that
environment, there is a competitive pressure that continues to be strong and contribute to the price
stabilization. Also, the consumers have an increasing choice of Poultry product providers because of
the close competition and new entrants. In addition, the Poultry product providers are also regulated
that contributes to the lower chances of price under cutting within the domestic market. Through the

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expected challenges, Norfolk Ltd increased their approach on the value enhancement and cost
Problems/issues which might be encountered while collecting
data and analyzing it in conducting my Research.

1. Difficulties in collecting competitors details
All the competitors of NF Ltd in the poultry industry do not allow any other third party to access their
data due to high security reasons. So getting accurate figures by way of secondary data is of great
difficulty to NF Ltd in order to plan and focus my research.
For Eg: Nelna Chicken even though an average competitor has a developed a high level data
protection security systems into the organization in order to ensure the confidentiality of their
companys information.
Nelna Farms. (2013). Nelna Farms. Available:
_index.htm Last accessed 15th July 2014.

2. Lack of benchmarking Capabilities.
Since the firm is launching a similar product to the fast food industry the firm does not have an array of
similar competitor in which it could benchmark its products and conduct research into.
3. Validity limitation:
During the response there may be high interference from friends and relatives of the respondent. This
to some extent may cause the response to their opinion instead of the respondents opinion. Thus
there is a compromise in the validity of the response. Even though this error is not quantifiable still this
will have somewhat effect on the overall validity of the final research outcome.
Within the context of the Poultry market the technology is continuously growing and inseparable. With
that factor, all of the technological advancement will contribute and create an enormous impact in
innovation and changes in the way in which people perceive ready to eat food. If the company will
base their performance growth, they will surely recognize the impact of the technology which suggests
that there is a need for transformation. Usually, the basic defense mechanisms of the businesses
plays between the two factors, one is to assume the changes and the other is to ride in the current
changes. And Norfolk strategically chose the second option. The company values the importance of
not being the first provider of products in the market but to be the most innovative product provider in
the market, because in the present business context being second and observant in the race where
the competition is extremely high is a positive sign for its future operations.

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This questionnaire which was formed upon the bases of the research objectives. It is written in
The English language, so that respondents from all walks of life could understand its content easily
and respond to them accordingly.
The questionnaire has total number of 20 questions and its completing takes 5-10 minutes.
The following types of questions are used in the below listed questionnaire:
Multiple choices: 11
Scaled questions: 2
Dichotomous (Yes/no): 4
Contingency (filter) questions: 3


Name of Respondent:

Occupation: ..


1. Monthly Income:
a. Less than 10,000
b. 10,000-20,000
c. 20,000-40,000
d. 40,000-80,000

2. Gender:
a. Male
b. Female


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3. Have you ever heard of The Company Norfolk (Pvt) Ltd?
a. Yes
b. No
4. If answered Yes for the above question: then tell us how did you get to know about
our products:
a. Word of Mouth
b. TV Commercial
c. Newspaper and magazine
d. Other
5. You pick up Norfolk Products when
a. You are doing your monthly shopping.
b. You buy it specially whenever the need arises
6. Would you want to repeat your buying?
a. Yes
b. No
c. Cant Say
7. Do you find it fully safe for your children, if yes why? If No why?
a. Yes
b. No
8. If you are not cooking at home what do you prefer?
a. Going To Restaurant.
b. Buying Ready to Eat Food
c. Ordering from a restaurant
d. Others
9. How many times you go for foods not made at home?
a. Once in a week
b. One to three times a week
c. More than three times a week
d. Not at all.


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10. Are Norfolk foods easily available in your locality, if yes where?
a. Yes
b. No
11. You Consume Fast-Food or Ready to eat Food Because?
Dont agree
at all
Dont agree very
Tend to agree Agree fully
Its convenient
and fast

It doesnt cost

You like it
Its easy to find,
its everywhere

The servings are
larger and

12. When you see junk food advertized, what do you feel?
a. You choose this product rather than another
b. You want to eat it even if youre not hungry
c. You want to taste it
d. You dont feel any of these effects
13. In your opinion, which of the following factors can cause health problems?
a. Frequent consumption of fast food & pre-cooked meals
b. Lack of physical activity
c. You dont know
14. In your opinion Fast-food or Pre-Cooked Food Manufacturers
Dont agree
at all

Dont agree
very much
Tend to
Especially want to please young People
Are concerned about the health of young

Are concerned about the well-being of
young people (e.g., energy, happiness, etc.)

Want to make a lot of money, regardless of
the means used in processing food

Add ingredients without really being
concerned about the health effects


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15. In your opinion, what are the effects of Pre-Cooked or Fast Food? (eg. Sausages, Chicken
Drumlets, Sandwich Slices )?
a. Gives Good energy & Provides Vital Nutriments
b. Increases fat & causes health issues
c. Increases fatigue after a certain period of time
16. In your opinion, what activities could Increase the consumption of healthy Certified Pre-
Cooked food by young people?
a. Show all the ingredients in these food products more clearly
b. Make attractive packaging for healthy foods
c. Increase variety & offer better food products
17. Do you intend to change your consumption of Fast Food in the next few months?
a. Yes, you would like to eat less often
b. Yes, you would like to eat in smaller quantities
c. No, you are happy with your consumption
d. You do not eat junk food
e. You havent thought about it
18. For each of the following statements, write the answer that you agree with

You are interested in knowing
more about the new Products
launched by Poultry
Companies in the area of

Do you speak about Healthy
fast food and its availability
with your family or in
Facebook exchanges with
your friends?

You would like to propose
activities which would lead to
the creation of better healthy
food (e.g., create an ad, write
an article, take on a challenge
or something else)


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19. What would encourage you to purchase ready to Eat or Pre-Cooked products?
You can tick more than one box
a. Celebrity endorsements
b. Free Samples
c. In-store Advertising
d. Cash back or bundle offers
20. What do you prefer mostly in a pre cooked product?
a. The food is tasty and flavorful
b. The quality of food should be excellent
c. The offerings has to have a good variety of items


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Berger, S., (2001), How We Compete, What Companies around the World are doing to make it in
todays global economy, Doubleday, New York.
Czinkota, M., Ronkainen, I., and Moffett, M. (2002), Fundamentals of International Business, Wessex,
LEVITT, R. et al. (1999) The reorganized Research Methodologies. 6th ed. Cheltenham: Stanley
De Burca, S., Fletcher, R., and Brown, L., (2001), Domestic Marketing: An Expert Ideology, FT
Prentice Hall, Harlow.
Doole, I., and Lowe, R., (2003), New Product Marketing strategy; analysis, development and
implementation, 5th Edn., Cengage, London.
De Silva, H., Samaranayake, M., and Kumar, P., (2012), Sri Lankan Economics: An SME perspective,
FT Colombo University Press, Colombo.
Gore, A. (2000). Foreword. In B. Katz (Ed.), Reflections on Food and Its Developments (pp. ix-x).
Washington, DC: Brookings Institution Press.
Luo, J. (Ed.). (2005). Food today: An encyclopedia of life in the present century (Vols. 1-2). Westport,
CT: Greenwood Press.
Leong, F. T. L. (Ed.). (2008). Encyclopedia of Domestic Food and Human Hygiene (Vols. 1-4).
Thousand Oaks, CA: Sage.
Nelna Farms. (2013). Nelna Farms. Available:
_index.htm Last accessed 15th July 2014.

Norfolk Ltd. (2013). Norfolk Farms. Available:
review/performance_20123/index.htm Last accessed 03rd July 2014.

Norfolk Ltd. (2013). Norfolk Farms. Available: review/performance_20123/index.htm
Last accessed 03rd July 2014.
Your Dictionary online. (2014), s.v. Processed Food Products Available: [accessed July 22, 2014])


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NF LTD Norfolk Limited
PLC Public Limited Company
NAITA National Industrial Training Authority
CSR Corporate Social Responsibility
CSE Colombo Stock Exchange