ASSIGNMENT NO 1

NAME- Myra Mumtaz.

REG NO- 63800.
COURSE- Strategic Management.
FACULTY NAME- Dr. Sajjad Nawaz Khan.

BCG MATRIX ANALYSIS FO FAUJI FOODS

LIMITED.
Assignment no 1 10th December 2023

Table of Contents

1. Executive Summary Page no 3

2. Product Analysis Page no 4
3. BCG Matrix Page no 5
4. Analysis & Recommendation Page no 6
5. Appendices Page no 7

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Assignment no 1 10th December 2023

1. EXECUTIVE SUMMARY:

Fauji foods is a private sector company which is producing products of different food items. The
main brand of fauji foods is Nurpur. The products selected for analyzing are Nurpur Milk, jams,
Flavoured milk and Butter. The other product chose is MUST fruit drink. Nurpur Milk and jams
are the star product of company, which are the best opportunity for long run sales and they should
be improved with backward forward integration and market penetration. Nurpur flavoured milk is
the question mark and the company should strengthen the product by market development. Nurpur
Butter the best-selling and MUST fruit drink is a cash cow product and the company should work
on related diversification for both products and retrenchment for fruit drinks to improve sales.

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Assignment no 1 10th December 2023

2. PRODUCT ANALYSIS:

The first company in Pakistan to use a spray dryer for the processing of milk powder is Fauji Foods
Limited (formerly Noon Pakistan Limited), which operates in the private sector. Currently, the
company's main business is the production and retailing of different dairy products and juices
under the Nurpur brand.
The selected products to analyze of company are:
1. Nurpur Milk: The main competitor of Nurpur Milk is Olpers of Engro. The market growth
is to be 19% in coming years. Nurpur Milk has 6% of share in total sales of Fauji foods in
year 2022.
2. Nurpur Jams: The total sales of Nurpur Jams only include 0.04% of the total sales in 2022.
The market growth of Jams is 4.25% in coming years. The main competitors is National
foods.
3. Nurpur Flavoured Milk: This is a new product of Fauji foods recently introduced and has
not gain a lot of market while market growth rate is said to be 6.51% in coming years. The
sales share is only 0.03% of total sales of fauji foods. The main competitors are Engro and
nestle.
4. Nurpur Butter: The best-selling of the fauji foods with huge share of sales 60% in year
2022. The competitors are lurpak and nestle. The market growth is of 3% annually.
5. MUST fruit drink: This is also a new product of Fauji foods. The product has only 0.06%
sales share in total sales of company. The market growth of fruit drinks is same as butter
of 3% annually. The competitors is nestle.

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Assignment no 1 10th December 2023

3. BCG MATRIX:

Relative Market Share Position

High 1.0 Low 0.0

High 0.20
Stars
Question Marks

1. Milk
3. Flavour Milk
2. Jams

Cash Cows Dogs

4. Butter s
5. Fruit drink

Low -0.20

Top Firm in Industry Relative

Your Firm's
Industry Sales Market
Division Division
Division Growth Share
Revenues
Revenues Rate Position

1. Milk $4,734,002 $4,734,002 0.20 1.00

2. Jams $20,454 $23,562 0.20 0.87
3. Flavour Milk $11,741 $60,595 0.06 0.19
4. Butter $20,301,578 $20,301,578 -0.08 1.00
5. Fruit drink $347,182 $486,739 -0.10 0.71

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Assignment no 1 10th December 2023

4. ANALYSIS & RECOMMENDATION:

Fauji foods has introduced the brand nurpur which is growing slowly in the market. The sales of
year 2022 and 2021 are discussed of fauji foods. The first product is Nurpur milk which is already
a market top in the milk as people are fond of Nurpur taste of milk and the trust on Fauji foods.
Olpers has a very strong marketing which makes it challenging for nurpur. The firm’s revenue for
nurpur milk is $4,734,002 and is the top firm as well in this division. The industry growth rate is
0.20 and relative market share is 1.00.
Second product is Nurpur Jams which have the firm’s division revenue of $20,454, while national
jams are the top firm revenues in this division with $23,562. The industry growth rate is 0.20 and
relative market share is 0.87. Third product is Nurpur Flavoured milk which is new and has not
gained much share in the total sales of company, it has a firm divison revenue of $11,741. The top
firm in this division is Engro with their flavoured milks with sales of $60,595. The industry sales
growth is 0.06 and relative market share is 0.19.
Fourth product is Butter which is the best-selling product of company and has the highest sales
share of fauji foods. The nurpur butter is favorite among buyers. The sales share is $20,301,578
which is also the highest in industry division revenue and has industry growth of -.08 with relative
market share of 1.00. The last fifth product is MUST Fruit drinks which are also new products of
the company and firms division revenue of $347,182. The top firm in this division is nestle fruit
drinks with sales of $ 486,739. The industry sales growth rate is -0.10 and relative market share is
0.71.
Nurpur Milk and jams are the Star products of company, they are the best long run opportunity for
Fauji foods, and they should focus on the backward and forward integration for these products also
market penetration is going to help the sales of these products to grow. Nurpur flavoured milk are
the question marks of company they can have a good market if the product is strengthened by
market development, the product should be introduced in new markets geographically. While
Nurpur Butter and MUST fruit drinks are cash cows, for nurpur butter the company should work
on related diversification introducing unsalted, salted and different related type of butter products
in market. MUST fruit drinks should have related diversification and retrenchment will work for
the improvement of sales of the product.

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Assignment no 1 10th December 2023

5. APPENDICES: