INDUSTRY ANALYSIS: As many as 86 food manufacturing companies are on the list of Karachi Stock Exchange out of total 783 companies (end January 1997). The paid-up capital of food companies stood at Rs.7.519 billion as end December 1996. They include, some of the biggest groups in the market such as Bawany, Crescent, Habib, Fecto, Premier, Lakson, Burma Oil (producing vegetable oils) Brooke Bond, Clover Foods, Lever Brothers and National Foods. The food manufacturing firms have generally performed well on the stock exchange in 1994-95 with capitalisation registering an above average increase. Net profit as percentage of share holder's equity has averaged at about 22 per cent during 1990-93 for the sugar and allied group, and about 25 per cent for the vegetable oil groups. The net profit ratio for the tobacco subsector has been 30 per cent. This compares well with the overall net profit ratio for KSE companies during this period, and averages to about 19 per cent. Thus, there is a significant scope for investment expansion in the food manufacturing sectors. Domestic demand is buoyant and export prospects are bright-although they are yet to be adequately explored. Several major companies including well known multinationals have substantial investment commitments and there are also a large number of middle sized upward mobile domestic firms. Scope, thus exists both for the establishment of wholly owned subsidiaries. There is also a need for technology transfer agreements which can facilitate the access of Pakistani companies, to modern technology and know-how in the areas of processing, preservation and packaging of food manufactures. Several Pakistani firms have developed ambitious modernization programmes.
Savour foods Pakistan is one of the best food specialists in Pakistan. There specialty being Pulao kabab for which they became famous in a span of 10 short years. Like any other success stories this one has all the elements of hard work, success and consistency. The owner of Savour foods back in his day used to sell pulao rice on a cart on college road Rawalpindi, due to his hygienic food and no compromise on quality the demand for his product grew and with it his business. The ordeal continued with him hiring 2 people with 2 carts to meet the demands. After Success in Rawalpindi , Savour Foods came into limelight at Melody Food Park Islamabad also. Branch at Blue Area Islamabad has been inaugurated on 24th March, 2005 whereas branch at Pindi Cricket Stadium has been inaugurated on 14th August, 2005. The Basic Stimulant of Savour Foods' Popularity is the most effective system of Quality Control. Beef , Chicken, rice and spices are the basic ingredients of our products. We have our own Rice Reprocessing Plant at Kamoki to obtain good quality rice. Besides the use of latest technology in preparation of shami kabab, quality beef and veggies are selected at high standard. That is, freshness, fineness and cleanliness is always taken into consideration. We don't compromise on our principle that is why taste and quality of Savour Foods remain the same as it was on the very first day.
OUTLETS: Savour foods Pakistan has two major branches and two smaller out lets in the Twin-cities of Islamabad and Rawalpindi. • College road branch Rawalpindi • Melody food park outlet Islamabad • Blue Area branch Islamabad • Rawalpindi Cricket stadium branch Rawalpindi
Savour foods Pakistan have over 1500 currently working in the above mentioned branches and outlets. Savour foods have an old fashioned flat hierarchy. Its is a soul ownership, all branches and outlets has a manager which directly reports to the owner, there is no HR department and no marketing department whatsoever.
It is not even an organization and there are no clear goals of the business, when asked all they would tell you is that we are here to sell some good quality food and that is our goal. There are no immediate plans of expansion to other cities of Pakistan but there are long term plans to expand to Lahore and Saudi Arabia. Our team members had the chance to interview the branch manager at blue area branch in Islamabad and we did figure out most of the problems with the business. The most crucial of them all was that they do not have specialized departments like finance, HR and marketing. The business was following the old Munshee (accountant) fashion of business which made us believe that there practises are some what ancient and outdated. When asked why they would launch a comprehensive marketing campaign the reply was beyond comprehension “we don’t need to market more, because we cannot handle more customers then we already have”, savour has a seating capacity of around 800 in the blue area branch and roughly around 500 in the Rawalpindi branch. They rely on the word of mouth type of marketing which according to them is working just fine.
Now lets take a look at the interview we had with the manager of the blue area branch which will be followed by the different problems we figured out with the business.
Q: Sir, for how long have you been working in savour foods and what are your responsibilities? ANS: I have been working here for one and a half year now and my responsibilities include all the day to day operations of the branch like sales, service staff record keeping etc.
Q: Tell us how well do you think you are doing at the moment in terms of sales and profit? Ans: Quite well actually we have a houseful at this branch almost through out the day, the sales are high and with that off course our profits as well.
Q: What are the problems that you as an employee of savour see in your company? Ans: There are several problems with savour firstly we do not have specialized departments like HR and finance which does not let savour achieve what it’s truly capable of. There is no sense of expansion whatsoever right now amongst the owners, with that said with all these problems we are still satisfied with our performance currently.
Q: Sir, would you explain why savour would not undertake a comprehensive marketing campaign? Ans: well quite frankly we can’t handle mass marketing as we do not have the resources to handle the inflow of customers. We have a seating capacity of over 800 here in this branch which is hardly enough and our take away department is always congested too.
Q: how do u think the general public conceives your brand of food? Ans: we have always stressed on providing quality food to our customers and I think we have been quite successful in doing that and due to this reason I am sure we have gained the trust of our customers in a way that when you talk about savour you talk about quality.
Q: What segments are you targeting currently? Ans: we are targeting all the segments as all kind of people comes in here from the rich and poor as well.
Q: Does savour have any plans of expansion in the near future? Ans: Not in the near future, but we are working on a five year plan to expand to Lahore and probably Saudi Arabia.
Q: Have you ever thought about running a cause marketing campaign? Ans: we already do a lot of charity work but savour does not believe in commercializing it and earning profit out of charity. Q: Why is it that savour is still following the old methods of running a business and has not transformed in an organization yet? Ans: well that really would depend on the owners, but I personally think the reason for that is that we are confident that we are doing really well right now so we are reluctant to make any major changes.
Q: There have been incidents of employees misbehaviour with the customers, how far do you think you have solved the problem and what do you think is the reason? Ans: mostly such cases have been when customers deliberately would put a hair or something not hygienic in the plates after consuming 3 quarters of the plate and then would deny payment. We have been urging our waiters to report the matter directly to the higher management on the floor and not to take matters in their own hands.
Q: Sir how do you explain the inconsistency of tastes in different outlets? Ans: certainly we know there can be a minor difference in the taste, but that does not have to do any thing with the quality of our ingredients but the method of the chef as we have different traditions and methods at different places.
Q: Tell us about Savour Krispo and any other addition to your line of products? Ans: Krispo was an idea given to our owner by our chef in Pindi branch as this type of fried chicken was gaining popularity in the market so we decided to adapt to it as well. Currently we do not have any plans for new products.
The problems that we came across with savour are the following • No specialized departments • Reluctance in expansion • Hugely dependent on word of mouth • Old business practises • Lack of innovative techniques. • No marketing sense whatsoever • Segmentation is below standards • the branches are overloaded and inadequate in seating and parking • no training courses for the employees • environment needs to be improved • bathrooms are inadequate • Service is slow at peak hours. • no efforts for brand strengthening • default values still prevailing • no employee growth • no corporate office • no press releases
Above are some of the problems that we as business students understand that savour has, there may be many more as we go into more technical aspects of the business. We as business students have a few suggestions which will change things for savour dramatically and would transform their shop profit to huge organizational profits.
SUGGESTIONS: • Transforming of savour into an organization with board of governors and public stake holders. • Creation of specialized department to help streamline the operations • Construction or renting of new premises all around the country on immediate basis • Establishing a customer loyalty base • Designing new product lines • Establishing a corporate office
The interview was conducted from the branch manager of savour foods blue area branch. This is a combined effort by Omer Jan Durrani Amna Rashid Naeem Ashraff Raja Waqas Rehman Ullah Omar Afzal
INDUSTRY ANALYSIS:
ReplyDeleteAs many as 86 food manufacturing companies are on the list of Karachi Stock Exchange out of total 783 companies (end January 1997). The paid-up capital of food companies stood at Rs.7.519 billion as end December 1996. They include, some of the biggest groups in the market such as Bawany, Crescent, Habib, Fecto, Premier, Lakson, Burma Oil (producing vegetable oils) Brooke Bond, Clover Foods, Lever Brothers and National Foods. The food manufacturing firms have generally performed well on the stock exchange in 1994-95 with capitalisation registering an above average increase. Net profit as percentage of share holder's equity has averaged at about 22 per cent during 1990-93 for the sugar and allied group, and about 25 per cent for the vegetable oil groups. The net profit ratio for the tobacco subsector has been 30 per cent. This compares well with the overall net profit ratio for KSE companies during this period, and averages to about 19 per cent.
Thus, there is a significant scope for investment expansion in the food manufacturing sectors. Domestic demand is buoyant and export prospects are bright-although they are yet to be adequately explored. Several major companies including well known multinationals have substantial investment commitments and there are also a large number of middle sized upward mobile domestic firms. Scope, thus exists both for the establishment of wholly owned subsidiaries. There is also a need for technology transfer agreements which can facilitate the access of Pakistani companies, to modern technology and know-how in the areas of processing, preservation and packaging of food manufactures. Several Pakistani firms have developed ambitious modernization programmes.
SAVOUR FOODS:
ReplyDeleteBACKGROUND:
Savour foods Pakistan is one of the best food specialists in Pakistan. There specialty being Pulao kabab for which they became famous in a span of 10 short years. Like any other success stories this one has all the elements of hard work, success and consistency. The owner of Savour foods back in his day used to sell pulao rice on a cart on college road Rawalpindi, due to his hygienic food and no compromise on quality the demand for his product grew and with it his business. The ordeal continued with him hiring 2 people with 2 carts to meet the demands.
After Success in Rawalpindi , Savour Foods came into limelight at Melody Food Park Islamabad also. Branch at Blue Area Islamabad has been inaugurated on 24th March, 2005 whereas branch at Pindi Cricket Stadium has been inaugurated on 14th August, 2005.
The Basic Stimulant of Savour Foods' Popularity is the most effective system of Quality Control. Beef , Chicken, rice and spices are the basic ingredients of our products. We have our own Rice Reprocessing Plant at Kamoki to obtain good quality rice. Besides the use of latest technology in preparation of shami kabab, quality beef and veggies are selected at high standard. That is, freshness, fineness and cleanliness is always taken into consideration. We don't compromise on our principle that is why taste and quality of Savour Foods remain the same as it was on the very first day.
PRODUCTS:
ReplyDelete• Chicken pulao kabab single
• Chicken pulao kabab double
• Chicken pulao
• Steam roast
• Savour Krispo
• Burgers
• Ice cream
OUTLETS:
Savour foods Pakistan has two major branches and two smaller out lets in the Twin-cities of Islamabad and Rawalpindi.
• College road branch Rawalpindi
• Melody food park outlet Islamabad
• Blue Area branch Islamabad
• Rawalpindi Cricket stadium branch Rawalpindi
Hierarchy:
ReplyDeleteSavour foods Pakistan have over 1500 currently working in the above mentioned branches and outlets. Savour foods have an old fashioned flat hierarchy. Its is a soul ownership, all branches and outlets has a manager which directly reports to the owner, there is no HR department and no marketing department whatsoever.
It is not even an organization and there are no clear goals of the business, when asked all they would tell you is that we are here to sell some good quality food and that is our goal. There are no immediate plans of expansion to other cities of Pakistan but there are long term plans to expand to Lahore and Saudi Arabia.
Our team members had the chance to interview the branch manager at blue area branch in Islamabad and we did figure out most of the problems with the business. The most crucial of them all was that they do not have specialized departments like finance, HR and marketing. The business was following the old Munshee (accountant) fashion of business which made us believe that there practises are some what ancient and outdated. When asked why they would launch a comprehensive marketing campaign the reply was beyond comprehension “we don’t need to market more, because we cannot handle more customers then we already have”, savour has a seating capacity of around 800 in the blue area branch and roughly around 500 in the Rawalpindi branch. They rely on the word of mouth type of marketing which according to them is working just fine.
Now lets take a look at the interview we had with the manager of the blue area branch which will be followed by the different problems we figured out with the business.
INTERVIEW:
ReplyDeleteQ: Sir, for how long have you been working in savour foods and what are your responsibilities?
ANS: I have been working here for one and a half year now and my responsibilities include all the day to day operations of the branch like sales, service staff record keeping etc.
Q: Tell us how well do you think you are doing at the moment in terms of sales and profit?
Ans: Quite well actually we have a houseful at this branch almost through out the day, the sales are high and with that off course our profits as well.
Q: What are the problems that you as an employee of savour see in your company?
Ans: There are several problems with savour firstly we do not have specialized departments like HR and finance which does not let savour achieve what it’s truly capable of. There is no sense of expansion whatsoever right now amongst the owners, with that said with all these problems we are still satisfied with our performance currently.
Q: Sir, would you explain why savour would not undertake a comprehensive marketing campaign?
Ans: well quite frankly we can’t handle mass marketing as we do not have the resources to handle the inflow of customers. We have a seating capacity of over 800 here in this branch which is hardly enough and our take away department is always congested too.
Q: how do u think the general public conceives your brand of food?
Ans: we have always stressed on providing quality food to our customers and I think we have been quite successful in doing that and due to this reason I am sure we have gained the trust of our customers in a way that when you talk about savour you talk about quality.
Q: What segments are you targeting currently?
Ans: we are targeting all the segments as all kind of people comes in here from the rich and poor as well.
Q: Does savour have any plans of expansion in the near future?
Ans: Not in the near future, but we are working on a five year plan to expand to Lahore and probably Saudi Arabia.
Q: Have you ever thought about running a cause marketing campaign?
Ans: we already do a lot of charity work but savour does not believe in commercializing it and earning profit out of charity.
Q: Why is it that savour is still following the old methods of running a business and has not transformed in an organization yet?
Ans: well that really would depend on the owners, but I personally think the reason for that is that we are confident that we are doing really well right now so we are reluctant to make any major changes.
Q: There have been incidents of employees misbehaviour with the customers, how far do you think you have solved the problem and what do you think is the reason?
Ans: mostly such cases have been when customers deliberately would put a hair or something not hygienic in the plates after consuming 3 quarters of the plate and then would deny payment. We have been urging our waiters to report the matter directly to the higher management on the floor and not to take matters in their own hands.
Q: Sir how do you explain the inconsistency of tastes in different outlets?
Ans: certainly we know there can be a minor difference in the taste, but that does not have to do any thing with the quality of our ingredients but the method of the chef as we have different traditions and methods at different places.
Q: Tell us about Savour Krispo and any other addition to your line of products?
Ans: Krispo was an idea given to our owner by our chef in Pindi branch as this type of fried chicken was gaining popularity in the market so we decided to adapt to it as well. Currently we do not have any plans for new products.
THANK YOU.
PROBLEMS:
ReplyDeleteThe problems that we came across with savour are the following
• No specialized departments
• Reluctance in expansion
• Hugely dependent on word of mouth
• Old business practises
• Lack of innovative techniques.
• No marketing sense whatsoever
• Segmentation is below standards
• the branches are overloaded and inadequate in seating and parking
• no training courses for the employees
• environment needs to be improved
• bathrooms are inadequate
• Service is slow at peak hours.
• no efforts for brand strengthening
• default values still prevailing
• no employee growth
• no corporate office
• no press releases
Above are some of the problems that we as business students understand that savour has, there may be many more as we go into more technical aspects of the business. We as business students have a few suggestions which will change things for savour dramatically and would transform their shop profit to huge organizational profits.
SUGGESTIONS:
• Transforming of savour into an organization with board of governors and public stake holders.
• Creation of specialized department to help streamline the operations
• Construction or renting of new premises all around the country on immediate basis
• Establishing a customer loyalty base
• Designing new product lines
• Establishing a corporate office
The interview was conducted from the branch manager of savour foods blue area branch.
ReplyDeleteThis is a combined effort by
Omer Jan Durrani
Amna Rashid
Naeem Ashraff
Raja Waqas
Rehman Ullah
Omar Afzal
This comment has been removed by the author.
ReplyDelete