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Shezan

Shezan

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Acknowledgement
We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge. First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the Prof. Shahzad Alam who taught us “Fundamentals of Marketing” with heart and also gave a guideline to this report. It would be an honor for us to thank Hamood-Ur-Rehman Shakir from marketing department of Shezan.

JUNE 2008

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Table of Contents
Serial No.
1.0 2.0 2.1 2.2 3.0 3.1 3.2 3.3 3.4 4.0 5.0 6.0 7.0 8.0 Marketing Mix Product Price Placement Promotion Environmental Analysis Swot Analysis (By Company) Swot Analysis (Self) Conclusion Recommendations Company Profile Brief History Vision & Mission Statement Product Range

Topics

Page
3 4 5 6 12 12 20 24 27 29 30 32 34 35

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Company’s Profile

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Brief History

S

hezan Company was incorporated on May 13, 1964 as a private limited company, with the objectives as set out in the Memorandum of Association in general and in particular to set up an industrial understanding for manufacture of

juices, squashes, sharbats, jams pickles and preserves from fruits and vegetables Nature has blessed Pakistan with an ideal climate for a wide range of delicious fruits. Over the centuries Pakistani experts have acquired and developed unique strains of exotic fruit varieties, unmatched for their rich flavor and taste Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A in1964. The agriculture background of the Pakistani sponsors induced them to establish this agrobased industry. Taking advantages of abundance of fruits available in Pakistan, and the advanced technology provided by the American partners, Shezan became pioneers in the field of converting fruits into pulps, concentrates and juices. Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country’s and export needs. In 1971 the Shahnawaz Group purchased all the shares of Alliance Industrial Development Corporation with the permission of the Pakistan Government. The Company has since shown sustained growth in both the domestic and exports fields. The Company has been steadily expanding its production capacity over the years. In 1980-81 a separate unit was installed in Karachi which now caters for Karachi, Sindh and export demand. A new bottle filling plant was set up in1983 in Lahore unit increased the capacity five-fold. An independent Tetra Brick Plant was commissioned in 1987 making us the leading manufactures with comprehensive range of production in the fruit processing field in Pakistan

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Vision statement
“To be known as leader of quality products in the region. Dedication to quality is a way of life at our company. In its activities the company will pursue goals aimed at the achievement of profitable business .these results will be derived from the dedicated efforts of each employee in conjunction with supportive participation from management at all levels of the company .To pay its role in the economic development of the country and to enhance quality of life of its people”

Mission statement
“Our mission is to provide the highest quality fruit and vegetable related juices and products to retail and food services customers. We will accomplish this by maintaining a tradition of pride in our products, growth through innovation, integrity in the management of our business and commitment to team management and quality improvement process.”

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Product Range
Shezan is producing a variety of quality products. Shezan is largely considered as market leader in fruit and vegetable processing industry. Shezan has an edge over other with its own fruit farms. Currently Shezan is giving tough time to other fruit juice manufacturers due to its quality and huge export volume as well as capturing local fruit juice market where it has competition with Nestle and Haleeb. Products can be divided into the following

Types of Products

Local Consumer Products

Exports

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Local Consumer Products
Following are the major products that Shezan is producing currently: 1- All Pure

2- Juice Bottles

3- Regular Juices

4- Twist

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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5-Syrups

8- Sauces

6 -NR-Bottles

9- Jams

7-Vinegar

10- Quench

11- Squashes

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12- Mango Nectar

13-Pickles

13- Ispaghol

Exports
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University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Marketing Analysis Of Shezan Twist juice Product

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Marketing Mix
"Marketing Mix is the set of controllable tactical marketing tools that are product, price, placement and promotion. The firm blends these tools to produce the response it needs from the target market."

Marketing Mix
Product Price Placement Promotion

Product
What Is "Product"?
"Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need is a product. It includes physical objects, services, persons, places, organizations and ideas."

Shezan Twist

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C

omprising of a blend of different fruit juices, shezan`s Twist juices open the door to a whole new world of possibilities. Available in easy to drink

slim packing twist juices are a must have in every household

Nature of the product
Everyone has their own ideas about replacing essential body fluids, vitamins and minerals - whether it's after exercise or just a tiring day at the office. Fruit juice is still one of the best ways to replenish the body's essential nutrients and it's a natural source of energy. Common people especially young generation is inclined to have ready to consume drinks; in addition hotels, hospitals are also expanding day by day where juices could be marketed successfully.

Ingredients in Shezan Twist Juice (Product)
Energy Total Fat Proteins Total Carb Sodium Sugar Vitamin C 127 cal 0.0 gm 0.15 gm 32.5 gm 1.5 mg 31 gm 5.7 mg

Percent daily values are based on 2000 calorie diet

Process of making
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Fruit juice production procedures involved in fruit juice manufacturing.

Fruit Juice - Production Process Flow
Production of fruit juices is a standardized process and type of technology depends on type of fruits and scale of operations. Initial preparatory processes for all fruits will be similar, as will be the last stages of juice/pasteurization section and packaging, although differences in handling juice composition arise in certain cases due to the nature of the fruit and percentage of pulp involved. Basically, preparation process of Twist juices involves the following steps:• • Washing and cutting of fruits Boiling of fruit pulp I) Pulp Storage in Tank II) Sugar Hopper • • • • •

Pulp and ingredients mixing Syrup Storage in Tank Juice Preparation Juice Storage Tank Filling and Packaging Cooling and Storage

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Fruit Juice Production Process After washing and cutting the fruit pulp is separated after that Pulp is shifted to the boiler where it is cooked and shifted to the plate heat exchanger. Pulp is then stored in the pulp
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storage tank. Pulp is then supplied to the mixing tank in the desired quantity while in mixing tanks; any additives to the pulp are made at this stage before it is pumped to syrup storage tanks. Blended juice is then pumped through pasteurizer; where it is heated to 90oC to inactivate enzymes and living organism. After pasteurization the juice passes through final filtration, before loading it into a juice storage tank. Juice from the tank is ready for packaging

Packing The juice will be then packed in the quantities 250ml. Packaging is done on imported machinery as it considered being highly sophisticated and hygienic Machinery Used -Fruit Juice Filling & Packaging Line S. No. Machine Capacity Local/Imported

1

Tetra Pak –TBA 19

7500 packs of 250 ml/ hr

Tetra Pak

Storage Products will be stored in cool dry store before distribution.

Product Shelf life Twist Juice in 250ml serving packs have shelf life of less then 6 months.

Packaging Material Used

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• •

Health and safety are directly linked with the packing material used and people are much concerned about it. That is the primary reason why ‘tetra pack’ packaging has been used by Shezan in twist rather than other packaging materials i.e. Tin pack, aluminum laminate pouch pack, and plastic bottles.

Product Flavors Available
1-Apple 2- Raspberry, 3- Pineapple, 4-Fruit punch, 5-Mango Strawberry, 6-Mango

The Target Market of the Product
The target market of Shezan twist juice includes teenagers. Basically they are targeting the students of schools, Colleges and Universities.
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Competition of the Product
Direct

Indirect Competitors

+

All other international brands. They Comprise 2% of total market

Shipping Units

250 ml

36 Packs per carton

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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(6*6 Wrapped Packing)

Market and Positioning Of the Product
The market is highly saturated in the drink, which are ready to use

Performance in the Market of the Product
Brand Nestle juice Country juice Tropico Juice Shezan Twist juice International Market Share 45% 5% 18% 35% 02%

Pricing
What Is "Price"?

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Price is the value placed on goods and services. Price is the amount of money and /or goods needed to acquire some combination of another and its accompanying services.

Pricing Strategy
Shezan when introduced twist juice in the market set the price at Rs. 12/- while the competitive price was Rs. 10/-. This above average price was due the better quality product and a new Juice brand by a well knows Juice Company and Industry giant.

Current Price
 The current price of one 250ml pack of Twist is Rs.15/ When we purchase 3dozen of 250ml of Twist than the price of this is

Rs.468/-

Available Size of Shezan Twist Juice
The Shezan Twist juice is available in only one size of 250 ml

Price Control
There are no price controls and this has happened after the introduction of local government system under the devolution plan. Companies are given free hand in charging enormously high prices for processed food items. They use little quantity of Fruit pulp in making the juice and charge very high price.

Overall Distributor or Whole Seller Margin

07-10%

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Retailer’s Margin

12-15%

Source School, Colleges and Universities Whole Seller Retailer

Purchase Price 12 12 12.90 15

Sale Price 3 .90 2.10

Profit

12.90 15

Pricing Objectives
The objectives of Festival Juices for pricing Juice Products are as follows: 1. To achieve a target return. 2. To maximize profit. 3. Stabilize prices to meet competition. 4. Market share Leadership 5. Product Quality Leadership

Price Table with the Pure Competitor Name of the Company
Nestle Juice

Price Of the Juice Rs. 18/-

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Shezan Twist Juice Country juice Tropico Juice

Rs. 15/Rs. 12/Rs. 12/-

Factors Affecting the Price of Shezan Twist juice
The following are the some factors that are affecting the price of Shezan twist juice.  They are using the expensive technology  The transportation , roads are not in a good condition  The un stable politicians, which have positive and negative effect on the price  The labor cost is low in Pakistan as compare to the others  The advertisement is increasing the cost price of it but this is necessary  Due to increase in taxes the price of them is also increased  They are using tetra packing which increase their cost

Differential Advantages the Company Have

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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 The name of the Company  Very Large capital in whole company  The good reputation in the market  The combination of Flavors  Foreign technology , they are using  One of the oldest company in private sector  They have their own plant of tetra packing

Placement
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The distribution network includes the distributor then the wholesaler and in the end the retailer. Again benefits are provided on the achievement of the sales targets and timely delivery of products. In some cases products are provided to big retailers by the distributor itself but mostly it is being purchased by the retailer from the wholesaler.

The Channel of Distribution: Market  Local seller  Whole seller  Zonal offices  Company  Fair Price Shop

Distribution Strategy

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Through the heavy advertisement the distribution can be affected because the distribution mainly depends upon the demand. In the Shezan twist they are using the above channel fro distribution the product  Some of people who wants to purchases very heavy amount of the twist juice , they come to the company directly and buy which is required  The whole seller are purchasing them for the resale able purpose but less then the first once  They have Zonal offices in different areas such as Rawalpindi, Lahore, Multan e.t.c to make it easy to sell

Distribution Areas
They are distributing in major cities such as:City Name
 Lahore  Karachi  Islamabad

Distributors 200 200 100 500

Total

Place for storage:They have the stores to store the juice packets before the juice goes for distribution

Demand increases
They always have the backup store juice to fulfill this demand

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Logistics
 To deliver the right quality and quantity of the twist juice, they are working on the daily bases  They have large number of trucks to achieve all the things according to their product  For distribution they are always have the future planning

Promotion
Shezan is using following mediums for promotion of twist
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 Billboards  Television  Radio  Newspapers  Broachers  Internet

They are doing these things according to the plans, for example  They now wants to advertise the product more through media by using the famous people  For the promotion of the product they are giving the free product in the start of the season  Large discount for the people who purchase the Shezan twist juice directly from the company and in large amount  Giving free samples to the people who visit the company  They are also arranging some charity shows in Karachi  They have given a very large amount to the people who suffers form the earthquake in Pakistan  Stale operations are functioning in which they are giving the free testing samples

 There are spending a lot of money in the preparation of mosques

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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 There are giving free Translated Quran, which are in more than 150 languages  They are also working in a Islamic Jameet named Ahmediya

Target Fragment
The target fragment for the product s the people using juices instead of the soft drink like Coke and Pepsi

Budget for Promotion
A. Electric Media B. Printed media 75% 25%

Environmental Analysis
1) The Company:University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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The people in the company they are not working as a team

2) Suppliers:Efficiency of the suppliers in the company is nice but required more improvement

3) Customers:The target market of the product is the teenagers mainly

4) Competitors:Nestle is the pure competitors of the Shezan twist juice

5) Internal environment:The internal environment is good but requires more changes

6) Technological :They are using the foreign technology which is their plus point

7) Marketing:Need to spend money field in marketing field

8) Distributors:-

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The distributors are in the Islamabad, Lahore, Karachi but they are not handling the areas perfectly

BCG Matrices
Shezan twist juice is the star product in the season and when the season is of this becomes the Cash cow product/

SWOT ANALYSIS (ACCORDING TO THE COMPANY)
Strengths
 Conveniently placed factory

 Pure and natural products  Qualified sales staff  Strong financial backup  Good distribution net work
 Effective advertisement campaign

Weakness
 Due to high rate of taxes our process are higher
University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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 Tax evaders sell product on much less prices and retailers blackmail for better profit margins

Opportunities
 Expansion of distribution net work  Diversification of product  Addition of new varieties  Modification according to present requirement

Threats
 Discount offered by competitors  Low quality food products on cheap prices  WTO  Less awareness of health  Nutritional facts of products with consumer

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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SWOT ANALYSIS (ACCORDING TO THE GROUP)
Strengths
 The Name of the company Shezan  One of the oldest company in private sector

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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 Using foreign technology  The honest and determined employees  A global business  ISO certificated  They are using near to pure Ingredients  No complains on the quality

Weaknesses
 Internal environment is not so good  Advertisement is weak  Distributors are not impressive  The sales manager have no much experience in this field  Product is promoting mainly in teenagers

Opportunities
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 They can introduce the Shezan twist in unready form  By increasing the advertisement, possibly the sales will increase  They can introduce this in 1 Liter packing  More and new flavor can be introduced  They can introduce these twist juices in powder form

Threats

High taxes on them

 They cant export without the permission of the Government  The Currency Value of the Pakistan is low  This product is seasonal  They are paying high taxes in exporting  Discount offered by the competitors

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Conclusion
According to our group mates after visiting the company and taking information from the market we have concluded that: They are going good but have to improve internal environment
 They have to improve their distributor sector.

 They have to make new strategy for the competitors like Nestle  They have large capital , so they have to spend more money in the advertising field  They have to introduce New flavor In the market  They can introduced these twist juices in 1 Liter packing
 They can introduce these juices also in powder form.

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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Recommendations
As we have mentioned that Shezan needs to improve its distribution strategy. Shezan is targeting youngsters as a potential and big market for its twist juice so if company supply directly to the schools, colleges and universities it removes intermediaries and due to high profit ratio café owners will promote Twist compared to other juices.

Company Owned Distribution House

Schools Colleges Universities

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Another important recommendation we want to give is this that Shezan need to come up with a different kind of packing. Juice packing with straw is not convenient for consumer as sometimes juice fell when we insert straw and sometimes some juice still remain in the pack that cannot come up with the straw. To resolve this issue Shezan must introduce packing with cap on it in spite of using straw. Quantity should be increased to 300ml and price should be Rs. 20/-

University Of Central Punjab PCBA/PICS 31-Main Gulberg, Lahore

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