Sukkur Institute Of Business Administration University

Final Project Report on Deewan Sweets, Shikarpur, Sindh

Name CMS-ID

Team Members
 Jawaid Karim 163-15-0012

 Khair Muhammad 163-15-0025

 Muhammad Ali Khan 163-15-0015

 Ammar Ali 163-15-0005

Submitted To: Muhammad Muzamil Sattar

(Lecturer- Sukkur IBA University)

Principles of Agriculture Marketing

BBA (Agribusiness) VII

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 Table of Contents
Executive Summary…………………………………………………………03
Current Marketing Situation…………………………………………………03
1. Market Description……………………………………………………04
2. Product review…………………………………………………………04
3. Competitive review…………………………………………………….04
4. Channels & Logistics Review………………………………………….06
SWOT Analysis……………………………………………………………….06
1. Strengths………………………………………………………………..06
2. Weaknesses……………………………………………………………..07
3. Opportunities……………………………………………………………07
4. Threats…………………………………………………………………..08
Objectives……………………………………………………………………...09
1. First year objectives……………………………………………………..09
2. Second year objectives …………………………………………………09
Marketing Strategy…………………………………………………………….10
1. Positioning………………………………………………………………10
2. Product Strategy………………………………………………………...10
3. Pricing Strategy…………………………………………………………10
4. Promotional Strategy……………………………………………………11
5. Distribution Strategy……………………………………………………11
6. Marketing Environment…………………………………………………11
7. Marketing Research……………………………………………………..12
8. Marketing Organizational Structure…………………………………….12
Action Programmes……………………………………………………………12
Sales & Promotional Budget…………………………………………………...13
Controls………………………………………………………………………...13

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Executive Summary:
Deewan Sweets started its operations 25 years ago to serve the
customers in Shikarpur. It is very much reputable inside and outside the city for its products
consisting of falooda, sweets, white-rose and a seasonal product, Gajar Ka Halwa.
Customers prefer the products of DS over those of its competitors due to unique taste and
premium quality. Therefore, it is the market leader in terms of market share as far as falooda
and sweets are concerned. It has few popular competitors comprising Iqbal Sweets, Royal
Bakers, Sonehri Bakers and Shikarpur Bakers. Keeping in view its current position and
analysing market gap and demand, we have planned to produce a new product, Deewan
Custard, to serve our final consumers and few famous restaurants too based in Shikarpur. Since
we are using differentiation strategy to produce new product, we have decided to come up with
“skimming” pricing strategy. To promote our brand in the market, we are using combination
of promotional strategies include “public relations, social media marketing, sales promotions
and personal selling.” The basis on which it distinguishes its products from those of
competitors is inimitable taste. Taking into account this decisive differentiation factor along
with desirable quality, DS is following “More for More” positioning strategy.

Current Market Situation

Deewan Sweets, entered in the market 25 years ago by Deewan family having good traditional
experience in making tasty, qualitative sweets, carbonated drink & desserts. Because of their
unique (highly preferable) taste & hygiene quality, it has become a brand in the hearts of
costumers in Shikarpur Sindh. Some of their products are famous at province level which are
Qulfi faluda, Gulab Jaman & Sweets. It has been a norm from the years in our society to take
some sweets after every meal or if someone visits as a guest, we present famous sweets & Qulfi
Faluda in their hospitality. In order to increase the targeted audience, recently, DS has
introduced a new product which comes in desserts category and no one has yet introduced in
the market. Which is mainly made at our homes and it is Custard. There is good potential in
our market especially in Shikarpur side, people love to take custard not only in the festivals but
after every meal. So, after analysing the need of customers, they have decided to introduce
Custard in the market. Moreover, DS has competitive advantage in making desserts & sweets
from the years. People would love to take its new product Custard because of its highly
favourable past records. As awareness & education is spreading day by day, rivals of Deewan
Sweets have entered in the market with new technology & great incentives to grab the market
share through broadening the targeted segment. Iqbal Sweets, Royal Bakers, Shikarpur Sweets,
Sonehri Bakery have entered in the market having all products in sweets category with a lot of
other bakery products too.
Deewan Sweets has greater market share in sweets and desserts (their own manufactured—
Qulfi Faluda) because of highly preferable taste & qualitative products relative to its other
competitors which are discussed above.

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 Market Description
Deewan Sweets comes in consumer markets & targets all the ages of people including Baby
Boomers, Generation X and Millennial having more than or equal to 15000 income per month.
Deewan Sweets covers the whole Shikarpur city including surrounded villages. They also
provide occasional products as well. Like in winter, they serve the products by introducing
Gajar ka Halwa to grab the market share.
Consumers want qualitative sweets & desserts with highly preferable taste. Considering all
these needs which are also discussed in Table No. 01, Deewan Sweets meets their all needs.
DS has great packaging (parcel) system. More than half of the revenue comes from parcel sales.
They also serve their products on tables. They have a small separated portion for families too.
So, they serve on the spot at the table & also pack if customer wants.

Targeted Segment Customer Need Corresponding Features/Benefits

Sweets & Desserts lovers  Reasonable prices All the consumers are provided
(Consumer market)  Tasty products hygiene quality products in
 Fresh products relatively cheap prices to the

 Hygiene quality quality.

 Well packaging of Availability in peak season.

products.
 High utility

Product Review
Custard—A custard contains rich ingredients which are highly required by our body for good
health such as eggs, yolk, milk, sugar, salt & various flavors with wee amount of thickening
starch as well. We will be offering 2-3 flavors in Custard. The advantages of our product
Custard in apple flavor are followings;
 It is healthy for our skin and hairs.
 It prevents various diseases like Asthama & heart attacks.
 It helps in digestion & also controls blood pressure
 Reduces cholesterol

Competitive Review: There are few numbers of competitors emerged in the market around 3-
5 years ago. But DS is in the hearts of consumers when it comes to buy sweets & desserts items.
So, in order to sustain in the market, they (competitors) have applied various strategies which
are discussed below.

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  Iqbal Sweets (IS): IS also provides sweets items. In addition, they also sell dairy
products like Milk bottle (Doodh ki bottle). They also have 3 tables in their store. They
have competitive edge in Nimkos & Samosas. These both products are famous among
the consumers & more than half of the revenue generates from these two products. They
are having relatively low share in sweets category in the market as compare to Deewan
Sweets. They have low cost strategy. Their prices are relatively low to Deween sweets
in the similar products.

 Soneri Bakers: Basically it is a small bakery which provides Bakery Bread and Eggs,
Chocolates & sweets, Canned Food, Nuts, Dry Fruits., Snacks/chips & Biscuits, Jams
jelly, Cheese & Desserts & all other products which comes in a bakery. Their audience
is different from what Deewan sweets is targeting but in sweets category, they are
competing Deewan Sweets. Their targeted segment is broader than DS, they are
applying differentiation strategy.

 Royal Bakers: They also provide the same bakery items as Soneri provides. They
charge relatively low prices as Soneri charges in the products which they manufacture
in their own manufacturing plant. In sweets category, Royal also Competes with
Deewan Sweets. They also charge little bit less price than DS charges. They also follow
low cost strategy.

 Shikarpur Bakers: They provide wide range of bakery, sweets, drinks, grocery
products. Their competitive edge is in Samosa, Chicken Roll, and Pates etc. People are
fond of taking these products from this enterprise. Their sales is normal in other
products.

Competitor Model Features

Iqbal sweets Sweets items, Nimko, Samosa, They provide all described
Milk Rose (dodh ki bottle) products in low cost compare to
market.

Soneri Bakers Sweets & bakery corner They provide all sweets & bakery
items including carbonated
drinks, juices & some grocery
items too.
They follow differentiation
strategy.

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Royal Bakers Sweets & bakery corner. They provide wide range of
sweets, carbonated drinks, juices,
grocery, and bakery items.
They follow focus strategy.

Shikarpur Bakers Sweets, bakery & Samosas, Rolls They provide wide range of
etc. grocery, sweets, drinks, juices,
and samosas etc.
They follow low cost strategy.

Channels & Logistic Review:

DS has their own manufacturing plant for producing all types of desserts, sweets and
carbonated drink. They purchase all the ingredients to be used in producing their product form
Deewan Wholesale store situated at Bhittai Bazar Shikarpur. From where they purchase all
their ingredients (inputs) in bulk amount & then process them in order to produce their end
products. Basically, the wholesale store from DS purchases the input also belong to same
(Deewan) community & both are relatives. So, they are getting quality products in the least
possible cost. As such they haven’t face any problem yet.

SWOT Analysis:
1. Strength:
 Unique & desirable taste, hygiene quality & reasonable price: It is obvious,
everyone has to fulfill their basic necessities. Everyone consumes something to remove
their hunger but people make choices on which food to consume on the basis of various
factors which of them are; desirable taste, reasonable prices, quality. And Deewan
Sweets provides all these characteristics to grab the attention of consumers.

 Highly committed & motivated staff: It is employees that makes a company

successful. Employees are the representative of the company. Consumers get informed
through employees. DS has highly committed & motivated staff. Some of the
salesperson are serving from more than 15 years. DS take care of its employees by
giving them good salary & other incentives. They realize them that they are owner of
the business. DS has implemented relationship-oriented culture. Experienced
salesperson pack/serve the order in minutes & never realize others & themselves that
they are just employees. Apart from unique taste, employees are the second reason for
their success.

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  Location: It is located at Lakhigate (center of the city), where four roads are linked that
leads to various cities/villages. There is also a bus stand, whenever someone is going
from or coming to Shikarpur, they buy some sweets for their beloved ones. Apart from
bus stand, the market starts from there. Regular traffic has been seen over there. In
addition, instead of being a busy place DS has great parking area as well.

 High Brand Image: Consistently serving the same quality made it brand in the eyes of
consumers. People buy its products without thinking too much, because unreplaceable
nature of its products.

2. Weaknesses:
 Reluctant to change: 25 years have been past, but still they are serving that same
narrowed segmented people. The building, infrastructure is same. The same transaction
system (way). All the things are running in a traditional way. It is one of the weaknesses
of Deewan Sweets.
 No online business: Nowadays, business are transferring to e-commerce. They are
doing online business. People prefer to buy their products at their doorstep. They want
to just order online & get wherever they want. Deewan Sweets has no any online
presence.
 Weak services in peak seasons: At the time of festivals, consumers demand increases
too much & at the shop a huge crowd stands for purchasing. As they have limited
salesperson, so, in order to get a product, they need to wait for 15-20 minutes for their
turn.

3. Opportunities;
 Expansion into Bakery products: Because of its all strengths discussed above,
consumers are loyal to Deewan sweets & they completely trust about their products in
terms of quality and price. DS has great advantage to expand its business by introducing
bakery products such as cakes, biscuits etc. They have good opportunity to expand its
market by broadening their targeted segment through introducing bakery products.
 High ratio of loyal consumers: DS has great market share in the Shikarpur Sweets &
its surrounded villages because there is no complete substitute of the sweets & desserts
(Qulfi Faluda) in terms of taste & quality. So, this is great opportunity for the business
to expand it more by increasing their product line.
 Trend of taking sweets is increasing: Nowadays, it has become a tradition to take
sweets after every meal. Whenever someone goes to their relatives or friends they also
take some sweets with themselves. At the time of evening, people take dessert ( Qulfi
Faluda) while hanging out with their friends or with their families. So, this is one of the
favorable things for Deewan Sweets.

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 4. Threats:
 Suppliers have got the power to change the input prices: There is great coordination
of supplier with Deewan Sweets, it is one of the reasons behind its success. Currently,
DS is dependent on the supplier, because if they get quality product then they can
maintain their quality otherwise they could be in great trouble. So, in order to run the
business smoothly, the supplier should be well coordinated. If there is a change in input
prices it is lucid that the end price will also be changed & it will affect the consumers’
behavior as well.
 Entry is easy: The entry is easy in the market. This type of business doesn’t require
too much investment just needed skills to make quality & tasty products.
 Competition increases: As the technology is increasing on exponential rates,
education is also spreading, in the market the competition is on increasing efficiency
(reducing cost). It is invisible but great threat to Deewan sweets. According to our
analysis, three new competitors has been entered in the market with new products &
services.

Strengths
 Unique & desirable taste.
 Hygiene quality.
 Highly committed & motivated staff
 Location
 High brand Image
 Unreplaceable products & having high
demand
 Reasonable Price
Opportunities
 Can expand into Bakery products too.
 High ratio of loyal consumers
 Trend of taking sweets & desserts is
increasing day by day
 As tourism is increasing, Shikarpur city
is famous for Qulfi faluda, Sweets &
Pickle & tourists love to take famous
Shikarpur’s product.
Weaknesses
 Reluctant to change. Serving the same
segmented area since 25 years.
 No online business
 Week services in peak season—
Festival, season etc.
Threats
 Suppliers have got the power of
increase the prices of products at any
time
 The entrance in this market is very
much easy
 Increase in market competition

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Objectives & Issues
Setting objectives is one of the crucial steps to success. There are immense benefits of setting
objectives which we have to achieve throughout the passage of time, it helps the management
to know where a business lies.
1st year objective:
Quantity Retail Price
200ml cup Rs; 60
400ml cup Rs: 110
800ml cup Rs: 200

We will be serving Custard at our restaurant and also to other restaurants as well.
Our estimated 1st year revenue from our store will be rupees 586’800, which we calculated in
described in the following table,
Cup Size Quantity per month Quantity per year Revenue from each
product line
200 ml 8*30=240 240*12= 2880 2880*60= 172’800
400 ml 5*30= 150 150*12= 1800 1800*110= 198’000
800 ml 3*30= 90 90*12= 1080 1080*200= 216’000
Total 480 5760 586’800

We plan to make available our product on 3 restaurants, which will be Qundan Restaurant, A.R
restaurant and Zaiqa. Our estimated revenue from these three restaurants will be rupees
1374’000*3= 4122’000. We have estimated through following table.
Revenue calculation from each restaurant is following:
Cup size Quantity per year Revenue from each
product line
200 ml 6000 330’000
400 ml 3600 360’000
800 ml 3600 684’000
Total 13200 1374’000

2nd year Objective:

We will double our store’s sales & will serve our product in 5 restaurants. We will be launching
e-commerce through which we can get orders from the consumers online & serve the products
at doorsteps of the consumers.

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Market Strategy:
Deewan Sweets is highly reputed because of its Unique Taste that it provides through
highly valued products. Therefore, it positions itself as follows; “A taste you desire every
day, everywhere”. Dewaan ‘s target market is classified into customer and business markets.
The scope of distribution of the product, Custard, that we are going to launch is limited to
Shikarpur city. As far as our targeted customer market is concerned, it includes middle class
section of the society, regardless of religion, gender, age, profession except people who are
prohibited to consume sweet products. As far as our business market is concerned, we have
decided to offer our product to restaurants located in the city. They are AR Foods, Zaiqa
Restaurant, Kundan Restaurant.

1. Positioning:
As mentioned above, Deewan Sweets positioning of all the products it serves is based
on taste that makes it distinguished from its competitors and continues to help it to attain largest
market share in the sweets and falooda market in the city. Since the company follows
differentiation strategy to produce custard, it uses “More for More” positioning strategy. The
reason to apply this strategy is that custard is convenient product. We know if a customer
purchases this type of product, it costs least proportion of his disposable income than other
types of products.

2. Product Strategy:
Deewan differentiates its products from those of its competitors on the basis of
inimitable customer-oriented taste. As a company, Deewan Sweets enjoys growth stage
because its current products, falooda and sweets, has helped to keep on still grasping largest
market shares in both markets. Keeping into view present position the company holds, it seems
its new product, custard, won’t take much time to catch the attention of customers. In order to
make it most attractive and consuming brand, we have planned to go with public relations
approach. Basically, we are going to build stalls at few places where large number of public
is likely to gather. What we have planned to do is that we will offer custard to public there free.
The process and criteria to get the product free, we will organise some games/competitions
there and winner will get the custard.

3. Pricing Strategy:
As mentioned above, Deewan is applying differentiation strategy that requires good
quality inputs particularly raw material and employee to produce the new product.
Furthermore, custard is a new product that is not still served in the market. Therefore, we are
using skimming pricing strategy. The reason to apply this strategy is product’s unique taste
that will keep it distinguished from that of competitors if they launch it after finding out its
demand.

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 4. Promotional/Communications Strategy:
We have comprehensively briefed above about what combination of promotional
strategies we have chosen and how we are going to apply them to promote our newly developed
product custard among our target segments. They include public relations, social media
marketing and sales promotions. Apart from them, another communication strategy we have
planned to take advantage of is “personal selling”. Since we have announced different prizes
for top three waiters so, this sense of competition will drive them to aware the customers, who
physically visit our shop, of new product and encourage them to purchase it. As far as our
business market is concerned, we are using “Push Strategy”. We are offering the product in
three different quantities; 200ml, 400ml and 800ml. For the 200ml pack, profit margin for the
restaurants is Rs:5 per pack and for the rest, margin is Rs:10 per pack.

5. Distribution Strategy:
The current products, falooda and sweets, Deewan Sweets offers are just limited to
customer market comprising final consumers who make purchases from the shop. As far as
new product, Deewan Custard, is concerned, we have added few famous restaurants based in
Shikarpur city along with final consumers to extend our distribution. The reason behind
expanding our customer base is these restaurants attract a large number of customers
particularly on national, cultural and religious occasions. Customers hardly find a place to sit
and order food because sitting area is already crowded on Eid-ul-Fitr and Eid-ul-Azha. After
having food, customers order tea and/or dessert.

6. Marketing Environment:
There are two types of marketing environment; one is microenvironment and other is
macro environment. As far as microenvironment is concerned, it includes the actors that play
vital role for Deewan Sweets to achieve its goals. Some of the popular actors are employees,
suppliers and customers.
As far as employees of Deewan are concerned, it is its employees whom customer value
and satisfaction depends on. The owners don’t produce the tasty product themselves but
employees are actual providers of taste that is company’s competitive edge over its
competitors. Therefore, it is important to develop good relationship with them to keep on
maintaining largest market share.
Suppliers also play a significant role in helping the company to deliver superior
customer value. As far as customers are concerned, company achieves its financial objectives
through them. Therefore, it should listen to their issues and address them in a way that doesn’t
create negative image of the company in their minds.
Macro environment includes non-controllable factors that influences company’s
organisational decisions and strategies. Political, economic, technological and cultural factors
are part of it. Company should keep itself informed of changes in these factors via different
sources such as; electronic media, social media etc. and act proactively to protect itself from
possible threats.

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 7. Market Research:
Generally, marketing research is conducted to find out target segment(s) needs to
deliver expected customer value and their satisfaction from current product any organisation.
Therefore, in order to understand customer needs and demand of target customer segments of
new product, we are going to distribute customer needs assessment forms, among customers
who visit and purchase current products from shop, that contains questions about how much
they are agreed to and satisfied with proposed benefits and price of new product, and
performance of current products and customers’ satisfaction level from them.

8. Organisational Structure:

Owner

Manufacturers Waiters Salesmen

Note: Deewan sweets operations are just limited to Shikarpur city. Because of Small
organisation, the owner performs multiple roles. He actually keeps the whole financial record
of organisation, manages employee-related issues and deals with suppliers.

Action Programs:
We have heard of a famous proverb; “First impression is your last one”. We think our
organisational activities and strategies in the earlier months of next year, 2019 have a decisive
impact on organisational ability to meet its goals. Our first 2-month and rest of the year plan is
as follows:
January 2019: We will launch our new product in mid-January 2019 in the market. 2 days
before it is commercialised, few stalls will be built at large public gathering areas like Lakhidar,
Ghantaghar where we will organise games/competitions/activities. General knowledge
questions will be asked from audience and one who answers right will be given a pack of
custard as winning prize. Other activities include singing, mimicry of famous celebrities etc.

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February 2019: Nowadays, use of social media is increasing and becoming popular around
the world. Keeping in view this shift, we have a plan to launch social media pages at Facebook
and WhatsApp named as “Deewan Sweets Official”. We will ask our customers to like and
join these pages where we will send them product-related information and social and rational
messages via videos to keep regular contact with them.
Rest of the Year: Our target customer scope covers almost all customer segments, regardless
of their religion, age, gender, profession etc. Various national, cultural and religious festivals
are celebrated. Demand of our product is likely to surge on these occasions. To attract large
number of buyers, 10% discount will be offered to final customers, and restaurants and bakery
stores using “Sales Promotion” strategy.

Sales & Promotional Budget:

We have categorised our target markets into two types; one is customer market. As
mentioned above, our annual projected sales from customer market is Rs: 586000 and as far as
business market is concerned, our first year revenue is Rs: 4122000. We have decided to
allocate a portion of total annual sales for promotional expenses. We have applied three
different elements of promotional mix at different times. The expenses we incurred on each of
them are as follows:
Type of Promotional Strategy Expenses
Public Relations 50000
Social Media Marketing 36000
Sales Promotions 110000
Total 196000

Note: Our projected sales from customer market during various national, cultural and religious
occasions is Rs:100000 and business market generates revenue of Rs: 1 million. On total sales
of 1.1 million, company has decided to offer 10% discount that is equivalent to Rs:110000 that
is allocated for sales promotions.

Controls:
The ultimate objective of developing and launching a product is to generate as much as
revenue by developing and maintaining “long-term profitable customer relationship”.
Deewan Sweets believe if they fail to satisfy a customer, they will not just lose a value of a
single item/purchase. Instead, they will lose all the value of various purchases a customer will
make throughout his life and/or till the company stops offering the product because it is no
longer desirable in the market. The way we have decided to tackle our target customers’ issues
is we will distribute “customer feedback forms” on quarterly basis among our regular
customers and all the restaurants we are serving to collect their feedback about product’s
performance and suggestions for improvement to better satisfy them by delivering their
desirable value. Furthermore, Deewan Sweets firmly believes its employees play critical role
in making it market leader in terms of having largest market shares in falooda and sweets
markets. The company does its level best to keep its employees motivated and retained by
giving them appropriate and compensation at the committed and right time. Besides, it will
give a prize of Rs:5000, Rs:3500 and Rs:2000 to the top three waiters on semi-annually basis.

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