KWANTLEN POLYTECHNIC UNIVERSITY
Individual Sales Report
Nanak Foods and MarketPlace IGA Account Plan
Prepared By: Amarvir Sohal, 100187645
MRKT 4160 – S50 Business Development
Instructor: Philip Ho
April 2nd, 2013
Account Plan
MarketPlace IGA
Prepared By: Amarvir Sohal
Prepared For: Gurpreet Arneja, Management Executive of Nanak Foods
April 2nd, 2013
1
Executive Summary
The account is MarketPlace IGA has 32 stores in British Columbia. The store carries a
meat, seafood, deli, bakery, produce, floral, and bistro departments. The vision is to
fulfill the needs of the community. IGA wants to be known as offering superior quality
products with exceptional service. Competitors for IGA would include Thrifty’s, Save on
Foods, Safeway and Superstore.
Nanak Foods is an Indian ethnic dairy and food product manufacturing company, which
is located in Surrey, British Columbia, Canada. The products are sold through various
distributors all over the world. The main distribution for Nanak Foods is in North
America. Main industry sectors focused in Nanak Foods are the wholesale, retail, and
food/beverage manufacturing markets.
Nanak Foods is priced fairly between its competitors with high quality products. Possible
top three competitors for Nanak Foods is Kraft Canada, Patak’s Original, and indirect
competitor being Indian restaurants.
After talking with Gurpreet Arneja, Management Executive of IGA, we have come up
with sales objectives and strategies targeted towards IGA, which will help us with
creating a long-term account with IGA.
After going through the analysis of both the IGA being a potential account and Nanak
Foods, the conclusion is that Nanak Foods should contact the headquarters of IGA (due
to MarketPlace IGA being a franchise). Nanak Foods has industry experience and other
key accounts with similar traits. As long as the sales strategy and objectives are followed,
Nanak Foods should be able to get the contract. I am assuming this due to past records
and accounts.
2
Table of Contents
EXECUTIVE SUMMARY
2
THE ACCOUNT: MARKETPLACE IGA
4
PROFILE:
MISSION AND VISION
STRATEGIC PLAN
BRAND POSITIONING
SWOT ANALYSIS
STRENGTHS:
WEAKNESSES:
OPPORTUNITIES:
THREATS:
ACCOUNT’S DECISION-MAKING PROCESS
PROCUREMENT POLICY:
STAKEHOLDERS
ACCOUNT’S FUTURE SALES OPPORTUNITIES
FUTURE NEEDS:
ACCOUNT POTENTIAL:
PAST SALES RECORDS:
4
4
4
5
5
5
6
6
6
7
7
8
8
8
8
9
THE COMPANY: BACKGROUND OF NANAK FOODS
9
SWOT ANALYSIS
STRENGTHS:
WEAKNESSES:
OPPORTUNITIES:
THREATS:
POSITIONING ANALYSIS ON THE COMPANY
COMPANY’S PRESENT MARKET POSITION:
COMPETITOR ANALYSIS (TOP 3 POTENTIAL COMPETITORS)
10
10
10
10
10
11
11
11
STRATEGIC ACCOUNT MANAGER’S PROPOSAL
12
SALES OBJECTIVES
SALES STRATEGY
SAMPLE OF FULL ORDER (ONLY INFORMATION PROVIDED)
12
12
14
CONCLUSION AND RECOMMENDATIONS
14
LEARNING EXPERIENCE
14
APPENDICES
16
APPENDIX 1: PRODUCT LINE
APPENDIX 2: EXPORT DISTRIBUTION
APPENDIX 3: INTERVIEW WITH DAVE KNIGHT, MANAGER FOR IGA PORT MOODY
APPENDIX 4: COMPETITOR ANALYSIS (TOP 3 POTENTIAL COMPETITORS) 1) KRAFT CANADA:
(KRAFT CANADA, N.D.)
16
17
19
20
3
The Account: MarketPlace IGA
Profile:
There are 32 stores in British Columbia alone. MarketPlace IGA stores carry with meat,
seafood, deli, bakery, produce, floral, and bistro departments. It offers beef and salmon
products, ready-to-eat items, salads, oven roasted deli meats and chickens, breads and
pastries, organic fruits and vegetables, and cut floral arrangements. The company is based
in Vancouver, Canada. MarketPlace IGA operates as a subsidiary of H.Y. Louie Co.
Limited.
Mission and Vision
“To fulfill the food needs of the communities we serve at a level that exceeds customer
expectations with quality products, competitive prices, outstanding service, and
impeccable cleanliness, while striving to always be the best employer possible.”(“Quality
Foods IGA,” n.d.)
Strategic Plan
IGA is making sure that they implement their strategic plan to all IGA stores so the same
protocols are followed especially with 6,200 stores in more than 40 countries worldwide
(“IGA Company Profile,” n.d.). According to Dave Knight, Manager of IGA Port
Moody, IGA’s current strategic plan is based on four sectors of activity in the meat, deli,
bakery and produce marketplace:
•
Deli: IGA’s deli department offers hot or cold goods suitable for a variety of
groups and customized to suit individual customer needs. Seasoned meats, fresh
4
sushi rolls, variety of cheeses, and fresh sandwiches offered each day with custom
packed salads (“IGA Deli,” n.d.).
•
Produce: To provide the customer with locally grown and fresh produce and
offering 75 fresh organically-farmed items in many of the IGA stores, and a total
of 1200 organic products (packaged) throughout the store (“IGA Produce,” n.d.).
•
Meat: IGA works with few Canadian suppliers to guarantee to receive high
quality meats. Offering AAA Canadian grain-fed beef from BC and Alberta’s
Northridge Farms (“IGA Meats,” n.d.)
•
Bakery: daily selection of breads, cookies, customized cakes, pies, specialty and
seasonal items. As many items are baked fresh in the bakery section everyday for
the fresh quality product delivery to customers (“IGA Bakery,” n.d.).
Brand Positioning
IGA’s brand positioning is high quality products with exceptional service. Offering
everything that the larger retailers have, however IGA has more convenience with staff
that is dedicated to helping customers (Knight, 2013).
SWOT Analysis
Strengths:

High quality products

Superior client service

High level of product knowledge

Weekly specials and promotions in flyers and online website
5

Serving British Columbia customers since 1955 with a positive reputation within
the lower mainland (“IGA About Us,” n.d.).
Weaknesses:

Priced higher than competitors such as Superstore, Save on Foods, Safeway, and
Thrifty’s.

IGA is normally a smaller store than competitors, which means that it will not
carry all goods that consumers look for. Variety may not be there when it comes
to some goods compared to competitors.
Opportunities:

Expanding into foreign markets, which they are currently doing such as
expanding to Australia (IGA- The future of independent retailing, n.d.).

Promote brand awareness to consumers to create larger market shares and
different segment.

Focus on Marketing through online communication channels

Community involvement through different events in local city hubs (Vancouver)
Threats:

Economic Recession will have an impact on IGA and customers will go to
supplementary competitors who are inferior competitors, however have lower
prices overall.
6
Account’s Decision-Making Process
Procurement Policy:
Ideal Supplier Profile: IGA will work with organizations that will be able to cater to all
IGA’s within a certain perimeter (i.e. British Columbia). Some of the current suppliers
that IGA deals with are H.Y. Louis, Sysco Canada, DairyLand and Dole Foods.
According to Dave Knight, return margins always depend on the size and quantity of the
product ordered. Values between IGA and suppliers must be the same to provide the
right type of product for the targeted consumer.
Procurement Criteria: There are two procurement criteria’s, which IGA focuses on with
products that sell in their stores.
Healthy Living: IGA is focusing on a section of the business, which aims at healthy
living. As consumer perceptions are continuously changing, the healthy living aspect is
growing in British Columbia especially. Consumers are more aware and cautious about
what goes into their bodies. IGA provides high quality products, which caters to
customers who want a healthy lifestyle.
Cultural Trends: Cultural trends are continuously changing. As Canada is a multicultural
country, trends and tastes are often brought in and focused upon. The Indian cuisine for
example is seen as a specialty product which consumers see as an exotic good. The same
can be said for sushi, which is very popular in the lower mainland.
IGA is mainly focused on the high quality of the product that is sold at each of its stores.
Suppliers need to make sure that proper procedures are taken to look after the goals of
IGA.
7
Stakeholders
Internal Stakeholders:
Targeted accounts are franchised retail grocery stores. Shares owned by about 35
distribution companies, including SUPERVALU and H.Y. Louis (“IGA Company
Profile,” n.d.).
External Stakeholders:

Customers

Suppliers

Charitable community partners

Government (municipal, provincial and federal)
Account’s Future Sales Opportunities
Future Needs:
The grocery retail industry, which IGA is currently in, is a very competitive market. IGA
needs to continue to keep up with cultural and lifestyle trends. Continued high quality
products and excellent customer satisfaction needs must be met to increase customer
loyalty and longevity.
Account Potential:
IGA has 6,200 stores in more than 40 countries worldwide (“IGA Company Profile,”
n.d.). This would be a major key account if a contract can be built around the two
parties. Nanak Foods already has experience with dealing overseas (see appendix 2:
Export Distribution).
8
Past Sales Records:
Only records found using secondary research consists of the total number IGA locations
in the City of Burnaby. Records show annual revenue of 5-10 million dollars in 2011.
The Company: Background of Nanak Foods
Nanak Foods is an Indian ethnic dairy and food product manufacturing company, which
is located in Surrey, British Columbia, Canada. The manufacturing company is fully
certified and a EU approved dairy facility that specializes in Indian based products which
includes Indian sweets, appetizers, and desserts (see appendix 1: Product Line).
The products are sold through various distributors all over the world. The main
distribution for Nanak Foods is in North America. Main industry sectors focused in
Nanak Foods are the wholesale, retail, and food/beverage manufacturing markets (see
appendix 2: Export Distribution) (Nanak Foods Company Info, n.d.).
Major clients that Nanak Foods currently distributes to are Costco, Walmart, Loblaws
(Real Canadian Superstore, Extra Foods and No Frills), Save on Foods, Safeway,
Thrifty’s, Restaurant Depot, and Fruticana (Nanak Foods Company Info, n.d.).
According to Gurpreet Arneja, Management Executive for Nanak Foods, the products are
distributed to over four thousand outlets.
9
SWOT Analysis
Strengths:

High level of product knowledge and experience in the industry

High quality of product control

Strong reputation within the industry

Experience in key account management

Large market share due to limited number of competitors

Wide product line (Nanak Foods Company Info, n.d.)
Weaknesses:

Brand awareness is not there. Consumers know about Indian cuisine but not
when it comes to the brand (“Research survey,” 2013).

Social networking platforms are not being used to match current technological
trends in the type of industry that Nanak Foods are in.
Opportunities:

Expanding overseas

Creating new key accounts

Expanding the product line

Enter different segments of the market
Threats:

Threat of competitors entering the niche market

Substitute products can rise in popularity
10

Economic recession will have a effect on the product

Rise of distribution and shipping costs

Low barrier to entry could increase competitors
Positioning Analysis on the Company
Company’s Present Market Position:
In comparison to its competitors in the retail industry, Nanak Foods has a fair price point
with a superior product. Nanak Foods also has the most brand awareness when it comes
to the branding logo and color scheme (“Research survey,” 2013). Nanak Foods is
positioning itself through different cultural segments. The first is targeted towards the
Indian community for special occasional use of the product. The second cultural segment
is towards the non-Indian community. Indian cuisine is seen as an exotic and “delicious”
product, which is eaten all year round. This positioning strategy aligns with IGA’s
positioning strategy. Both are about quality products catering to cultural trends.
Competitor Analysis (Top 3 Potential Competitors)
The three main competitors, which Nanak Foods will face against, will be Kraft Canada,
Patak’s Original, and local Indian restaurants (see appendix 4: competitor analysisstrengths and weaknesses). Nanak Foods does and will continue to have a strong
competitive presence when competing for the IGA account. The following is what gives
Nanak Foods the edge:

High Quality Product Line

Company Track Record and Current Key Account References
11

Culturally Trend Driven Product with High Demand.
Strategic Account Manager’s Proposal
Sales Objectives
After talking with Gurpreet Arneja, Management Executive of IGA, we have come up
with sales objectives targeted towards IGA, which will help us with creating a long-term
account with IGA.
a) To secure an order of 25% of the regular order for all five IGA locations within
the City of Vancouver in a time span of six to nine months (IGA in City of
Vancouver, n.d.).
b) Once IGA is satisfied with Nanak Foods products and service, Nanak Foods will
set a regular order for all 24 locations in the Lower Mainland in a 9-15 month
time span (IGA locations in the Lower Mainland, n.d.).
c) Overall goal is to create a long-term contract (create a key account) with IGA
after a 15-month trial with all locations in the Lower Mainland. Nanak Foods will
then settle on a three-year contract. Sales representatives will be taking monthly
orders with bi-weekly shipments being sent.
Sales Strategy
It is very important that a sales strategy be created specifically to meet the key account
needs of IGA. IGA locations in Vancouver are franchise operated. Nanak Foods will
contact headquarters, which is located in Chicago, Illinois, United States, in the next
three months.
12
According to Gurpreet Arneja, Management Executive of IGA, a “strategic sales
package” has already been put together. This package has all the sales history between
Nanak Foods and its larger clients. The reason is to show the track record and reputation
that they currently have within the industry. Gurpreet believes that “the focus is on
creating a long-term relationship with the company. This is not a one time sale
transaction”.
After the initial relationship has been established, Nanak Foods plans to set up sales
meetings with top management to secure a percentage of the regular order as a test trial.
Sample products, references from past clients and other information will be given to IGA
management. This time frame will be set for three to six month’s time.
The goal is to have 25 percent of the regular order from three to six months in the City of
Vancouver locations. Nine to fifteen months will be the first regular order for all
locations in the lower mainland.
After the fifteen months are up and IGA is satisfied with the products, Nanak Foods will
settle on a three-year contract. Contracts can be renewed, cancelled and or changed in
pricing/ delivery structure.
Strategy will contribute to the overall corporate strategy by offering high quality products
with a fair pricing strategy among competitors. The end user will be catered through
quality and cultural trends.
13
Sample of Full Order (only information provided)
Gurpreet Arneja was able to show a sample of one of their accounts. The following is an
order delivery for one Superstore location (7550 King George Hwy, Surrey):

250-300 cases per week

Each case has three packages, which each weigh 12 pounds. Each case is 16kg.

Each package has three different three different products.

Arneja says that they focus on a low mark up and a higher quantity delivered.
Conclusion and Recommendations
After going through the analysis of both the IGA being a potential account and Nanak
Foods, I have concluded that it is feasible to go ahead and contact the headquarters of
IGA. Nanak Foods has industry experience and other key accounts with similar traits.
Nanak Foods will be able to deliver the quality and quantity asked by IGA. As long as
the sales strategy and objectives are followed, Nanak Foods should be able to get the
contract. I am assuming this due to past records and accounts.
Learning Experience
After going through this account plan, dealing with a business and a key account, I now
have a better understanding of the business development process when taking the steps to
acquire and create a key account and key account plan. Developing a key account plan
takes a lot of time and research. All information gathered could make a significant
difference in understanding what kind of account/ party you are dealing with. A strategic
account manager has to fully understand the industry and market trends. He/she has to
14
know how the business works, inside and out. The individual needs to have a great grasp
of knowledge of their product line along with being able to demonstrate the benefits to
the targeted key account. Networking and relationship management is the key to
acquiring a key account and keeping it. Finally the sales strategy has to be implemented.
The “game plan” has to be set and great patience is needed between both the company
and the account.
15
Appendices
Appendix 1: Product Line
APPETIZERS

Paneer pakoras

Tandoori paneer poppers

Battered breaded jalapeno peppers

Aloo Tikki
DESSERTS

Rasmalai (pista)

Kesar rasmalai

Kheer

Gajar halwa

Kulfi
INDIAN SWEETS

Kaju katli

Kaju roll

Chocolate burfi

Peda

Dhoda

Pista burfi

Anjeer Burfi

Pinni
16
NO SUGAR ADDED (SUGAR FREE) PRODUCTS

Rasmalai

Pista burfi

Peda

Kheer

Gajar halwa
Appendix 2: Export Distribution
• Australia
• Germany
• Japan
• Kuwait
• Mauritius
• New Zealand
• Qatar
• Singapore
• South Africa
• United Arab Emirates
• United Kingdom
• United States
• Alaska
• California
• Colorado
17
• Connecticut
• Delaware
• Florida
• Georgia
• Illinois
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Hampshire
• New Jersey
• New York
• North Carolina
• Oregon
• Pennsylvania
• Texas
• Washington
18
Appendix 3: Interview with Dave Knight, Manager for IGA Port Moody
(Knight, 2013)
1) How long have you been a manager for at IGA?
a. “I’ve been a manger for IGA for six years now.”
2) What do you believe the brand positioning is for IGA? How does IGA differ
from its competition?
a. “IGA’s brand positioning is providing high quality products with
exceptional service. We offer everything that the larger retailers have,
however IGA has more convenience with staff that are dedicated in
helping customers.”
3) What is the Company’s SWOT analysis? Strengths, Weaknesses, Opportunities,
and Threats?
a. “Strength would be that strategically positioned within communities and
cities that are mostly residential. Fresh quality products such as the deli
and bakery section. Weaknesses are that we are slightly higher priced
than some larger competitors. Threat is that with the economy dropping,
more people want a bargain when it comes to food and drinks. That is
where places like Walmart and Extra Foods would have an advantage.
Finally a opportunity is to expand into more cities and be more community
involved. Currently the upper management in the IGA headquarters is
focusing their efforts in Australia. That is definitely a good opportunity
when it comes to expansion.
19
4) Who are some of your suppliers? How do you deal with them? Order
placements? Return Margins?
a. “Some of our suppliers are mainly wholesalers and manufacturers such as
H.Y. Louis, Sysco Canada, DairyLand Dole Foods, and many more. We
have a weekly delivery schedule with some of the suppliers. Also reps
from different companies that we work with come in for a monthly check
in. Anything that does not sell or expires is returned to the company.
Things such as dairy and produce usually sell quickly. Some of our
canned food products, which have a long shelf life, may not sell or expire
after some time. Those products are then returned or exchanged.”
5) What are the future needs of IGA?
a. “Well IGA (this location specifically) needs to continue doing what they
are good at, such as high level of customer service, high quality products,
and convenience to the customers that come in and also live around this
location. The future needs are catering to the right demographic and
constantly making sure that we have the goods that are in demand.”
Appendix 4: Competitor Analysis (Top 3 Potential Competitors)
1) Kraft Canada: (Kraft Canada, n.d.)
Strengths:

High level of product knowledge and experience within the retail industry

Key Accounts are well established with a long track record for business success

Kraft products are already on shelves of almost every retail grocery chain,
including IGA.
20
Weaknesses:

Due to Kraft Canada having such a wide and long product line of products, such
as Kraft Dinner to Peanut Butter to Oreo Cookies, they will not be able to
specialize on the quality and niche aspect of the Indian cuisine. The “exotic”
cultural taste will not be the same when you have a Kraft label on the product.
2) Patak’s Original (Patak’s Original, n.d.)
Strengths:

High level of product knowledge and experience within the retail industry

Similar product line when compared to Nanak Foods

Superior social media presence (facebook/patak, 2013)
Weaknesses:

Nanak Foods has more key accounts and a larger market share (Arneja, 2013).
3) Local Indian Restaurants
Strengths:

Fresh ready made goods served to consumers

Real “Indian” experience with a restaurant environment
Weaknesses:

Pricing would be much higher than any other competitor due to being restaurant
industry

Can not be a every day consumable good (price and industry)

Would vary from city to city experience. Nanak Foods products would be sitting
on every large retail grocery outlet.
21
Work Cited
Arneja, G. (2013). Interview with Gurpreet Arneja, Management Executive.
IGA About Us. (n.d.). Retrieved from http://www.igastoresbc.com/about-us/default.aspx
IGA Bakery. (n.d.). Retrieved from http://www.igastoresbc.com/departments/bakery.aspx
IGA Company Profile. (n.d.). Retrieved from http://www.hoovers.com/companyinformation/cs/company-profile.IGA_Inc.637435eb2db0ac7a.html
IGA Deli. (n.d.). Retrieved from http://www.igastoresbc.com/departments/deli.aspx
IGA in City of Vancouver. (n.d.). Retrieved from
https://maps.google.ca/maps?hl=en&q=iga+in+burnaby&ie=UTF-8
IGA locations in the Lower Mainland. (n.d.). Retrieved from
https://maps.google.ca/maps?hl=en&q=iga+in+burnaby&ie=UTF-8
IGA Meats. (n.d.). Retrieved from http://www.igastoresbc.com/departments/meat.aspx
IGA Produce. (n.d.). Retrieved from
http://www.igastoresbc.com/departments/produce.aspx
IGA- The future of independent retailing. (n.d.). Retrieved from
http://www.iga.net.au/igafresh/site_files/s1001/files/Content%20Managers/IGA0
302_Brochure_SP1.pdf
Knight, D. (2013, 03). Interview with Dave Knight, Manager of IGA Port Moody.
Kraft Canada. (n.d.). Retrieved from
http://www.kraftcanada.com/en/recipes/internationalcuisine/Indian/Indian.aspx?cm_mmc=srch-_-Google-_-Kraft-Cooking-IndianEN-_-indian-food-recipes
22
Nanak Foods Company Info. (n.d.). Retrieved from
http://www.ic.gc.ca/app/ccc/srch/nvgt.do?lang=eng&prtl=1&sbPrtl=&estblmntNo
=234567087855&profile=cmpltPrfl&profileId=501&app=sold
Patak’s Original. (n.d.). Retrieved from http://www.pataks.ca/home.php
Quality Foods IGA. (n.d.). Retrieved April 2, 2013, from http://wikimapia.org/350628
Research survey. (2013).
23