MARKETING REPORT

BACKGROUND & INTRODUCTION:

The story began in 1955. Imtiaz Abbasi’s father opened a kiryanastore which was tucked away
in an obscure lane in Bahadurabad. In 1978, Imtiaz Abbasi made a trip to Singapore and he came
across the Al-Mustafa Store, which was one of the largest retail chains there; he was so
impressed with their business model that he decided to replicate it for Imtiaz. On his return, they
began adding more product categories to our existing assortment and due to the favorable
customer response, after a few years, they bought the adjoining shops to expand the set-up.

From a small kiryana store to Imtiaz superstores today

The one complaint that customers had was that Bahadurabad store was too congested. On
weekends, and in particular during the first 10 days of the month, the store would become
extremely crowded. The vision was that all new outlets should have a larger covered area so that
more products can be stocked in, while leaving enough room for people to move around
comfortably. What drove the creation of the department store format was the fact that customers
were on the lookout for one-stop shopping solutions. When Imtiaz first started, shopping for
groceries was about buying maheenay ka rashan – rice, flour, sugar, salt, cooking oil and spices.
Today, this kind of shopping is not considered a chore anymore; rather, it is seen as a fun, family
outing. The retail experience today is about convenience, variety, quality and affordability.

Since 1955, Imtiaz Super Market is providing its customers the unique shopping experience in
Karachi, one of the biggest metropolitan cities of Pakistan. Imtiaz is one of its kind modern retail
departmental store offering products for everyday use.
Imtiaz is currently operating with 10 outlets located in all major areas in Karachi, Gujranwala
and Faisalabad. It is the first ever retail-store located in the financially booming cities of Pakistan
where we are gradually increasing our presence, by the day.
Convenience, amazing product range, excellent customer service and unmatched affordability
are few of the features that make Imtiaz Super Market the leader in modern shopping in Pakistan
with the desire to exceed customer’s expectations.
Flexible timings allow customers to shop more conveniently in a safe and secure environment
unlike open markets; where the products like vegetables, fruits and meat are offered in an
unhygienic environment. The company has introduced a meat shop for seafood, poultry, mutton
& beef and a bakery. These facilities allow customers to find complete shopping solution under
one roof.
INDUSTRY: RETAIL

COMPANY NAME: IMTIAZ SUPER MARKET

TAG LINE: THE ULTIMATE SHOPPING EXPERIENCE

VISION:

"Our vision is to be recognized and respected as one of the premier supermarkets that is creating
a world where everybody can buy like rich people”

MISSION:
"In line with company's vision statement, we want customers for life. To earn customer's loyalty,
we must unlock the potential of customers buying power to improve their quality of life
 GOALS & OBJECTIVES

1. Provide customer an enriching environment of trust and co-operation.

2. Anticipate customer needs and act to create value in their eyes.
3. Create self-servicing environment; where customer can have separate product departments,
discounts and pricing.
4. Our employee’s management fit with our strategic management planning.
5. Employees flourish as company is flourishing.

6. Introduce our brand in international market

TARGET AUDIENCE:

The largest chunk of Imtiaz super market comes from the middle-income segment. However,
since Imtiaz maintains an economy pricing strategy, their products are affordable for everyone.
Discerning customers appreciate the breadth of quality brands they can choose from, while
others enjoy the shopping experience.

PRICING STRATEGY

Imtiaz is playing on cost effective strategy providing every product at the lowest possible price.

Due to our sales volumes, they are able to buy in bulk and this gives them a cost edge over
retailers with smaller set-ups who lack the cash flow to spend in lump sums on procurement.
Furthermore, because they have their own rice and flourmills, as well as an extensive in-house
spice grinding, cleaning and packaging facility, thry are able to provide these staple commodities
at substantially lower prices than the market average. Also, a principle that have been followed
throughout five-decade retail journey is to give back 30% of the profits that are earned to
customers in the form of discounts, giveaways and gifts. There have been times when prices
were not increased in line with market trends and their profit margins took a hit. However, in the
long run, this has given them an extremely loyal customer base.

PROMOTIONAL STRATEGY

Imtiaz Super Market Super Saving with Super Ramadhan Packages

Imtiaz Super Market, one of the Karachi’s Super Market trend setters announced the “Super
Saving with Super Ramadhan Packages”. Imtiaz Super Market recently opened its 4th Branch at
the confluence of KPT Interchange and Khayaban-e-Ittehad. Imtiaz Super Market vision of not
making his business big but to serve people; a vision of not making profits but helping people
save money; a vision to strive and conquer with love.

“Piling high and selling low”

That’s the strategy of Karachi’s Imtiaz Super Market, which, despite a slow expansion rate,
snatched a significant market share from the competition and impressed local investors.

The company that exclusively targets the middleclass is planning on expanding their own
supply chain as well as a nationwide expansion of their stores.

“We should have at least eight stores in Karachi alone,” IMTIAZ SUPER STORE’s 56-year-
old owner, Imtiaz Hussain said. Admitting the company remained slow in terms of opening
more stores, Hussain said they want to open at least three more stores in Karachi during next
five years.

Pakistan’s retail sector has become more vibrant recently, thanks to the growing middle class
one-third of the country’s population and the entry of international players into the Pakistani
market, such as France’s Carrefour and Germany’s Metro Cash and Carry.

Imtiaz super market too, is preparing for what is turning out to be a corporate war in the retail
business the company wants to re-introduce local and imported goods at large scale, according
to Hussain.
The company is renovating its Bahadurabad store and also looking to buy more space around
that building. After meeting Karachi target, Imtiaz will go to Hyderabad, Faisalabad, Lahore
and Rawalpindi Yet first it must overcome some logistical problems. Many of its branches do
not have separate parking or offer fresh grocery (fruits and vegetables).

LOCAL BRANDS THAT IMTIAZ OFFER:

1. Dawn foods
2. Lux
3. Colgate
4. Shan
5. National
6. Cottage food
7. Mehran
8. Hankies
9. Good milk

IMPORTANT BRANDS THAT IMTIAZ OFFER:

1. Fa
2. Himalaya herbals
3. Rimmel
4. Nivea
5. American garden
6. Bvlgari
7. Dove
8. Puck
9. Vaseline

Market situation Analysis:

Imtiaz Super Market (IMTIAZ SUPER STORE), the Karachi-based chain of grocery stores has
opened its first outlet in Gujranwala on 25th September; sources with direct knowledge of the
development confirmed this to Profit.

Located at King’s Mall, Wapda Town Chowk, Bypass Road, Gujranwala is first outlet in the
Punjab and part of the company’s nation-wide expansion plan: the local retail giant, who has
already conquered Karachi’s retail market, is now looking to tap into what forms the Country’s
Largest Province Based on Population.

According To The Sales Data Compiled By Large Consumer Goods Companies, Such As
Unilever, P&G, Nestle and Engro Foods, Imtiaz super store Has About 20% Share in Every
Category of Fast Moving Consumer Goods (Fmcgs) In Karachi.

Being a private company, IMTIAZ SUPER STORE doesn’t disclose financial details but market
sources say it is Karachi’s largest grocery chain based on volumes and accounts for one-fifth of
the city’s retail segment.

According to the sales data compiled by large consumer goods companies, such as Unilever,
P&G, Nestle and Engro Foods, IMTIAZ SUPER STORE has about 20% share in every category
of Fast Moving Consumer Goods (FMCGs) in Karachi, an official said on the condition he
would not be quoted.

Industry experts say on a per-square-foot basis — a popular benchmark to measure retail

business’s financial strength — IMTIAZ SUPER STORE makes more money than any other
supermarket in the country. After the opening of its Gulshan e Iqbal branch, the company’s
earnings are estimated at more than Rs400, 000 per square foot.

Starting as a small grocery store years ago, this local chain of supermarkets has been thriving on
the back of a retail boom, using a simple strategy: ‘piling high and selling low’.

Pakistan’s retail sector has been going through a boom because of increased spending by a
growing middle class, which is about one-third of its population (200 million). The country’s
retail market has more than doubled during the last decade. Planet Retail, a global retail-
forecasting firm, estimates the size of Pakistan’s retail market at $152 billion, up 253 percent
from $43 billion, a 2006 estimate by Small and Medium Enterprises Development Authority.

During the last decade, international players, such as Metro Cash and Carry, a German wholesale
giant and Hyper star, a subsidiary of UAE’s Majid Al Futtaim Group and retail franchise of
France’s Carrefour also entered the market.

However, the strong presence of international competition was hardly any deterrence to the
growth of this local brand. IMTIAZ SUPER STORE presently employs more than 3,000 people
and serves 70,000 customers a day at its five branches in Karachi – the brand’s strength can be
judged from the fact that it has 700,000 home delivery customers.

IMTIAZ SUPER STORE’s success over the years has made it a good case study for business
school students aspiring to enter the retail sector and also brought it on investors’ radar.

“IMTIAZ SUPER STORE is out to kill the competition,” an official said referring to its business
strategy. They simply unleash the supply chain and play around their strong buying margin, he
said. Explaining the official said IMTIAZ SUPER STORE buys merchandise at 2% to 3% lower
margin and even sells it at 5% to 7% lower margin compared to other retailers, giving it an
aggregate advantage of up to 10% which is tough to compete.

“I call it wholesale within retail,” Hussain says of his strategy but refrains from sharing specific
details, which are his business secret. He doesn’t even disclose the mode of financing for the
company’s expansion. However, market sources say it resorts to inventory financing and gets
private investors to fund its expansion.

With IMTIAZ SUPER STORE entering the Punjab, where purchasing power is higher compared
to other provinces, the retail sector is likely to see more competition, say market sources who
believe the local retail giant can become Pakistan’s Wal-Mart if it continues to receive the
response it did so far.

SWOT analysis:
Strengths:

1) Imtiaz has the basic strength of low prices with high quality.
2) Serving the customers with the wide variety of products
3) Having the strong retailing business background
4) Best location for such kind of big store and also covering many areas.
5) Efficiently using the place and excellent layout
6) Friendly and co-operative staff
7) Computerized data base system which helps both customer and Imtiaz.
8) Providing discount card
9) Available all sorts of goods

Weakness:

1. Lack of support from government

2. Only one branch in city Multan
3. Absence of electric equipment

Opportunities:

1. Faster market growth then before

2. Local event
3. Provide a bonus
4. Provided discount card
5. Variety of products

Threats:
1. Changes in government policies
2. New competitors
3. Changing market taste
 4. Social trends

Competitive situation:

In comparison to other famous stores like Hyper star Imtiaz firstly had different target market
as it particularly targets middle class population however its target market is seems to be
undergoing a spectral shift. They believe that choosing locality like korangi area is mainly due
to people from defense and Clifton.

Hyper star – a hypermarket located in the heart of the upscale Dolmen City Mall in Clifton –
has already established itself as the go-to location for grocery shopping in the region since its
launch. The IMTIAZ SUPER STORE team now hopes to give it a run for its money.

Imtiaz is part of this competitive market, and every retailer is our competitor, responding to a
question explicitly asking him if IMTIAZ SUPER STORE wants to divert hyper star’s traffic.

COMPETITORS

Chase up (the biggest competitor):

Chase Up was founded in 1984 as a family owned business initially selling quality readymade
garment at affordable prices. The company was considered as pioneers of introducing the
concept of modern departmental store retailing in Karachi. Chase Up has always focused on
maximizing customer convenience; by providing a wide range of quality goods and services
under one roof at the prices that majority of customers can afford to pay. Since then the business
has continued to grow and the business model has evolved during the years up to the point
where the company now falls under the category of quality discounting in the retail sector.
Presently, the company is operating 6 stores in Karachi or 1 store in Multan and 1 store in
Faisalabad, selling a wide variety of clothing, footwear, Groceries, house wares, ladies fabrics
and health and beauty products to name a few. Chase Up plans to open more stores in Karachi
and throughout the country in order to touch more and more customers every day with its even
expanding range of quality foods at highly affordable prices.

Naheed Super Store

Naheed Supermarket was formed in the 1970's as a small grocer's outlet in Bahadurabad by a
man named Abrar. Slowly and gradually the store gained goodwill and it became popular
amongst the residents in the Bahadurabad area.

Soon after, the shop became congested and it was inconvenient for the customers to shop freely
due to limited shopping space. The management was of the view that they were in danger of
losing customers due to the congestion in the stores in peak shopping periods.

Abrar and his son decided to open a new and larger outlet at Siraj ud Daula Road which would
make shopping convenient and satisfactory. They decided to open the outlet near Bahadurabad
because the owners did not want to lose their existing customer base. The store was converted
into a super market as they opened an outlet with 3 floors, reasonable parking space and
shopping area. The ground floor displays groceries and cereals. The second floor displays
electronic items and cosmetics whereas the third floor displays baby products and different
branded products.

Hyperstar

Founded in 1992, Majid Al Futtaim is the leading shopping mall, communities, retail and leisure
pioneer across the Middle East, Africa and Asia.

A remarkable business success story, Majid Al Futtaim started from one man’s vision to
transform the face of shopping, entertainment and leisure to ‘create great moments for everyone,
every day’. It has since grown into one of the United Arab Emirates’ most respected and
successful businesses spanning 15 international markets, employing more than 40,000 people,
and obtaining the highest credit rating (BBB) among privately-held corporates in the region.

Majid Al Futtaim owns and operates 21 shopping malls, 12 hotels and three mixed-use
communities, with further developments underway in the region. The shopping malls portfolio
includes Mall of the Emirates, City Centre malls, My City Centre neighbourhood centres, and
four community malls which are in joint venture with the Government of Sharjah. The Company
holds exclusive rights to the Carrefour franchise in 38 markets across Middle East, Africa and
Asia, and operates a portfolio of more than 210 outlets in 15 countries.

PROBLEMS FACED BY IMTIAZ:

 Stock outs of highly demand products.

 Difficulties in navigating products in store.
 Long waiting lines.
 Search for parking spot and transportation of heavy purchases to vehicles.
 Lack of walking space.

TECHNOLOGY:

Imtiaz Super Market enhanced computerized technology in the retail industry with installations of
very sophisticated equipment’s like Product Scanners, Computerized Receipt Printers, Credit Card
Machines, Retail Selling Software and implementing of proper Inventory. A call center has been
established which is operated by employees from 10 am to 10 pm. The citizens of Karachi are
enjoying this service and order their groceries and other necessities for free home delivery on a
phone call, email and fax.