2. Analytical Report on Nathu Sweet
MOTTO:
Treating every individual customer as a very special and meeting their requirements to
the best possible satisfaction is the motto of this generation. We will carry forward the
goodwill of NATHUS, QUALITY & TASTE further following the footsteps of our elders
and constantly improvising the service, quality and taste of our products.
PRODUCT RANGE:
It’s a matter of pride that we produce more than 500 items everyday under one roof
ranging from traditional Indian Sweets (Mithai) to the latest fast food like Pizzas,
Burgers, and Sandwiches etc. We are ready to service our guest’s daily from 8.30 hours
and take pleasure in serving till 22.30 hours every day, 7 days a week.
OVERVIEW OF NATHU SWEETS:
The research provided us with many option as to how “The Nathu sweets” can
overcome the cost they are fueling into the process and yet the result are not satisfying.
System needs to undergo changes so as to improve efficiency and check the flow of
resource in the right direction. Mr. Gupta has taken essential steps by introducing
technology and using methods of motivation to overcome this period of recession and
businesses down turn.
ORGANIZATION CONDITION OR BACKGROUND:
Nathu sweets have its place amongst famous sweet shop one may come across in
Delhi. It has 13 branches which offer varieties of sweets and other preparations. It
started from a small shop at Bengali market and over decades runs through chain of
such shops. Nathu sweets are well known for sweets maintaining quality which always
being updated as per consumers taste. It has employees who are with this chain shop
for years and pouring their skills in improving quality.
But now Nathu sweets is facing the downturn effect with the world as the price of the
raw material has increased many turn, which has raise the cost so keeping the price of
sweet low has become a difficult task. Moreover the last year statements show that the
organization has seen negative sign on the profit margin that are going down. So to
3. overcome this they have appointed ABC business consultant to verify the functionality
and provide us with the solution for profit realization.
Objective:
To analyze the Nathu sweets present working environment and processes and provide
them with best optimum possible methods to increase profits.
Problem:
To check the cost and to bring necessary changes in the working process with
economies of scale.
Alternatives:
1. They can bring changes in processes of production by just in time methods of
production so that the waste could be minimized.
2. Expansion could be postponed as it may require capital at initial stage
3. One more method is to increase the working hour of employees so that some of
the labor could be expelled.
4. They can use technological gadgets like grinder, mixer, dough maker, ovens and
deep fridge at all our outlets.
5. They can also freeze all new appointments and rather provide management
training, employ idea into business by brain storming with managers.
6. They can also give bulk orders as per the requirement to their vendors for the
purchase of raw as to avail discounts.
7. Give stress on home deliveries, outdoor door catering, franchise and birthday
clubs.
8. Try to explore foreign market
Evaluation of alternatives:
1. Customer satisfaction, so as to regain profitability
2. Maintain market position.
3. Retaining enough funds for smooth functioning of the business.
4. Adding significant value to customers without compromising on quality.
4. 5. Stress on their core competencies (quality).
6. Efficient Business plans of action for future growth.
7. Target high value customers.
RECCOMMENDATIONS:
1 .Discountscan be given on selected items in the festive season as per the demand
observed in past.
2. Identify their permanent customers and avail them special opportunities.
3. Special marketing techniques to target new customers during festive season.
4. Give some benefits to their employees so as to motivate them.
5. Maintain the quality in spite of the cost cutting methods adopted in the organization
6. Reducing wastages to improve effectiveness.
7. Getting feedback from the customers and implement their ideas on new products.
8. Strictly follow FIFO method in the time of recession
9. Innovative branding and packaging for their products can be a effective means.
10 Improving distribution channel and supply chain can prove to be worthwhile.
11 Ideas of offering stickers or tattoos with the pack could also be useful, especially for
attracting children
5. SWOT ANALYSIS FOR NATHU SWEETS:
STRENGTHS AS BRAND:
First Mover Advantage
Product Quality & Hygiene
Value for Money Products
Rich Cultural Heritage – Exchange of Gifts
Strong Distribution Network
For all Age Groups
Various Awards of Recognition
CHALLENGES & OPPORTUNITIES
Road Ahead –
– Aggressive competition
– Changing customer habits (Western Influx)
– Innovative products and retail forms(Food Malls)
– Addressing other segments with an inclination to fast food – such as
children, teenagers and college goers.
– Venture into other product categories, new snacks with different variants
and flavours backed by sound market research.
– Company diversifies and tap other regions
6. Taste VS Health –
– Offer low calorie traditional snacks
– Brand equity: lower the prices
Product variants and lack of small packs: Cannot experiment
Use the franchising route to capitalise on brand equity
Exemplars and Established Brand Credibility : Leverage on the international
quality awards
WEAKNESSES
• Consumer proximity to retail outlet.
• Sale pushing of other brands
• Schemes given to retailer are not enough.
• Less profit of margin of nathu product from other brand.
• Less advertisement.
CONCLUSION
Nathu sweets being the popular sweetmeat shop in Delhi has beaten the
economic downturn by focussing on ways to cut costs without comprising on
quality so they introduce new work culture in the shop with the cooperation from
all the employees for better and efficient functioning of the firm.
• There is high awareness level for different nathu products amongst the retailers.
• Nathu has been famous for many of its products.(chole bhature)
• From the data it’s quite clear that while promoting any brand the foremost
considerations are good demand & margins followed by regular supply and next
comes brand names.
• Brand awareness for nathu product is very high.
