Management

1. PRESENTEDTO:

2. :
 Nirala Sweets (Uniqueness) was started by Mr.
Taj Din in 1948.
 Location: Flemming Road, Lahore.
 Speciality: Halwa Puri and Mithai.
 Secret Recipe: Best Quality Ingredients
 Official supplier of sweetmeat at sate dinners at
Governor House from 1964.
 Didn’t choose to expand much at that time.

3. FAROOQ AHMED’S ERA:
 In 1980 Mr. Farooq Ahmed, Taj Din’s Son became the Chairman of the
Nirala Group
 Not Well-Educated but Experienced & Knowledgeable
 Taj Din’s family was dissatisfied due to:
(i) Limited Market Shares
(ii) Taj Din’s family was rich and they want to do more.

4. FAROOQ AHMED ERA:
 Opening of New Branches of Nirala
First sweet shop was opened in the area of new Lahore (Jail road).
 Fancy and Gift Packing
Introduced Fancy and Gift Packing for sweets very first time in Pakistan.
 Free Medicine for Customers & Employees
He provides free medicine to his workers and customers to heal their burned
injuries.

5. ABOUT NIRALA:
 Nirala Sweets was a confectionery chain
based in Lahore, Pakistan.
 The company used to sell traditional Mithai
and its own branded snacks, dairy products
and beverages.
 The brand had over 22 outlets in Pakistan
and 2 in UAE.

6. VISION:
 Global Brand:
The vision was to make Nirala a global brand
 Unique Product:
Nirala continuously offered unique products and
interesting service concepts that others have not dreamt
of.

7. CORE VALUES:
 The core values and traditions of Nirala which have made
the brand Nirala a market leader for the past 60 years are:
 Continuous Improvements
 Innovations
 Integrity
 Team work and Social Responsibility

8. FAISAL FAROOQ ERA
 Faisal Farooq was the son of Farooq Ahmad and grandson of Mr. Taj
Din. He was a well-educated young man and completed his MBA
degree from United Kingdom (UK).
 In 1994, he came in his family business at a very early age of 22 years.
 Faisal made many substantial decisions to expand his family business.
 He positioned Nirala as a modern and sophisticated sweetmeat
supplier.

9. INITIATIVES TAKEN BY FAISAL FAROOQ
 Establishment of Research and Development Department
(R&D)
 First of all, he established R&D department by hiring competent
professionals.
 After a few months, when this department gave its initial report,
he took big steps to expand the business on the basis of that
report.

10. OPENING OF NEW BRANCHES OF NIRALA SWEETS
 He opened new branches in all major cities of
Pakistan like Lahore, Islamabad, Rawalpindi,
Karachi, Sialkot and Peshawar.
 He also inaugurated Nirala’s outlets in Dubai and
Sharjah (UAE) because of high demand of its
products.

11. MARKETING STRATEGIES
Faisal applied 7P’s of marketing mix to raise the standard of Mithai
business. Those 7P’s are explained as under:
 PRODUCT
Faisal did product and packaging research. The size of the product
was reduced from 40 to 20g.
He introduced FIRNI and KHEER in cups for the first time.

12. MARKETING STRATEGIES
 PRICE
Faisal introduced customized packages for all occasions on 300%
premium price. Yet customers liked them by using “word of mouth”
approach.
 PHYSICAL EVIDENCE
For the first time, interior designers were hired for outlets’
makeover. Salespersons were trained. Their uniform was changed
to give a more decent and neat look.

13. MARKETING STRATEGIES
 PEOPLE
Market research carried out by Faisal, confirmed the target age group
to be 35-40 years of age.
The youngsters were seemed to have moved on to more western
sophisticated confectionary items, like cakes and chocolates.
 PROMOTION
Nirala used ‘word of mouth’ approach to launch customized products.
They also introduced online order placement service.
They didn’t go with TV ads due to low marketing budget.

14. MARKETING STRATEGIES
 PROCESS
Many efforts went into designing and reshaping the traditional mithai shops and
products into latest and up-to-date sweet outlets and products that match the
expectations of the modern customers.
 PLACE
After all this success, Faisal focused on expansion.
By 2008, Nirala had 34 highly successful outlets in 9 cities of Pakistan and 2 in the
Middle East. All this hard-work made the sales grow more than 10 times in the last
eight years.

15. ACCORDING TO BOSTON CONSULTING GROUP
APPROACH
Growth share matrix defines us SBU strategic business units.
 STAR
Nirala sweets and its dairy products were well-known and running products.
They gave Nirala highly profit.
 QUESTION MARK
Nirala snacks had highly growth rate but less market share.

16.  DOG
Nirala restaurants were in this category because they were not popular
among the public.
 CASH COW
Nirala sweets had low growth and high market share.

17. REWARDS FOR EMPLOYEES
 On the marriage of any employee of Nirala, 10kg sweets was given
as a gift to them.
 On Eid, 1 kg sweets was given to each employee.
 In Ramadan Aftaar party was used to arranged.

18. EFFECTS ON ORGANIZATION
Motivation and rewards had good effects on organization such as:
 Improved moral of employees
 Greater efficiency in processes
 More profitable

21. S.W.O.T ANALYSIS
Strength
 Strong Brand Name
 Its brand is widely acceptable as a symbol of quality.
 Independent decision making

22. Weaknesses
 Heavily financed by financial institutions.
 Cannot take small orders with reference to home delivery.
 They have not promoted their restaurants
Opportunities
 Being one of the best Mithai manufactures in Asia, the company
great opportunity in the export market in Middle East, like Canada,
UK and USA.
 NIRALA went into diversification by establishing restaurants, café,
dairy business, snacks, etc.
Threats
 Primary Competitors was sweet business like Gourmet bakers, Fazal
Sweets, and secondary Shereen Mahal in addition of their growing
branches.
 Products of other bakeries and Mithai Shops were cheap.

23. CONCLUSION
 NIRALA claimed that "we don't compromise on quality", and it was
also proved to be right, that is why it was growing day by day.
 Nirala Sweet was an excellent sweet mart with a large variety of
sweets.
 They opened new branches internationally which no other sweet
mart was providing.

24. THE DOWNFALL OF THE EMPIRE
 The story of Nirala Sweets is akin to a Shakespearean tragedy of
sorts - where fame, money and success simply disappeared
overnight
 The downfall of the empire began with a bank loan taken to set
up a dairy factory.
 Faisal Farooq mortgaged all his property, worth billions of rupees
at the time, like a good idea at the time, ended in disaster.

25. WRONG DECISIONS
 A big initiative at the wrong time triggered the downfall of the confectionery
chain.
 In different phases, the company borrowed more than Rs1.5 billion at high-
interest rates from the Bank of Punjab when the dairy business was on the
decline.
 Nirala could not pay back the borrowed money and the interest kept piling
on.
 At this time, the death of a young boy in a road accident added to Faisal
Farooq’s troubles.

26. MAJOR SETBACK
 Faisal Farooq broke up with his Uncles.
 Nervous shareholders sold off their stakes
 Under the new, young leadership, Nirala thrived.
 The failure of the mega dairy project was a blow for Nirala.

27. END OF THE GREAT EMPIRE
 The year 2014 was virtually the end of the great empire, and the
factory on Waris Road was sealed for not paying outstanding taxes.
 Faisal Farooq’s name was put on the exit control list (ECL).
 The man who used to keep the company of the country’s top political
and business elite became an absconder.
 The entire family stood divided due to the stubbornness of Faisal
Farooq.