Segmentation of Shangrila

Marketing Management (MKT 302-A)

Date: December 5, 2018

Submitted To: Dr. Amber Raza

Group Members:

Areeba Sohail (21388)

Muhammad Hammad (22207)

Muzzammil Naeem (22306)

Shayma Mokarram (20984)

Umair Sikander (18974)

CONTENT
PAGE NO

INTRODUCTION………………………………………………………3

VISION AND MISSION………………………………………………..5

PRODUCT PORTFOLIO……………………………………………….6

4P’s OF MARKETING…………………………………………………7

COMPETITORS ………………………………………………………..8

SEGMENTATION……………………………………………………...9

TARGETING ………………………………………………………...…9

POSITIONING …………………………………………………………9

CONSUMER ANALYSIS ……………………………………………10

UNIQUE SELLING
PROPOSITION………………………………….10

BRAND MANTRA……………………………………………………11

BRAND POSITIONING BULL’s EYE…………………………….…11

TRANSCRIPT…………………………………………………………12
Introduction

The Company

When it all began about 23 years ago, nobody could have even dreamt that such a small company
would one day become a leading national food brand.

Innovation for Good

SHANGRILA took over the challenges in domestic markets by setting up a diminutive

manufacturing unit in Karachi in 1988 for its seasonings; soy & chilli sauces. Later in the late
90s, the range was supplemented by Tomato Ketchup drawing a huge success due to its quality,
taste and innovative packaging; initially with the 100g sachet which was a one of its kind pack
during that era and later the Stand Alone Aluminum Foil Pack with a nozzle & a screw cap. The
100g pack managed to wedge through consumers in developing the ketchup market among the
masses, while 1Kg SAP catered to economy. Early in 2000s, SHANGRILA enhanced its
portfolio with Pickles-in-oil in Stand Alone Pouches for the first time in the history of
commercially produced pickles, and this resulted in a steep vertical ascent in the brand’s growth
in the following years.

Continuous product and packaging innovations, besides advancement of the supply chain
process, removal of bottlenecks, and modernization of manufacturing facility with European
technology cruised SHANGRILA ahead of the competition. SHANGRILA has been persistently
taking on the tough situation in the industry, and has managed to create depth, as well as width
for itself, moving at a pace faster than its rivals.

With a phenomenal multifold-fold rise, SHANGRILA (Private) Limited has become a brilliant
success story stretched not only throughout the country, but internationally as well, managing 4
product categories; ketchup, sauces, seasonings, pickles-in-oil under the brand name of
SHANGRILA and another brand FRUITI-O drinks.

Internationally Accredited

To increase the acceptability of SHANGRILA products locally and globally, the company has
taken the lead in implementing the industry’s best manufacturing practices and obtaining
internationally acclaimed certifications. SHANGRILA was among the first few in the food
industry to obtain the ISO 9001-2008 Quality Management System & ISO 22000-2005 Food
Safety Management System certifications along with HALAL certification from SANAH the
South African National Halal Authority. It is also a member of the Association for Dressings &
Sauces, USA. Apart from certifications and accreditations, SHANGRILA has consecutively won
Brands of the Year Award, Consumer Choice Award and Global Food Safety Award over the
years.

Global Footprints

SHANGRILA has a strong distribution network in all major towns with more than a hundred
distributors nationwide. SHANGRILA has also made inroads in numerous countries across the
globe, including markets like USA, Canada, UK, EU, Middle East and Africa.

Prospering Like Never Before

With SHANGRILA spreading wings all over the globe, acquiring key markets & strategically
developing new products, there was a corporate need felt to identify with a wider scope .The
company started working on new food related projects & products. All this has led to strategic
realignment of resources & focus giving birth to a new brand FRUITI-O drinks.

Tradition to look beyond

Reaching new heights and breaking newer grounds is something that’s regarded as the motto of
work at SHANGRILA. Today, fully geared with an undying passion for success, SHANGRILA
is fueled by the dynamic drive that has shaped its yesterday, fascinated its today and tomorrow.

The company’s inner spirit is one of motivator; participative culture and constant strive for
inspiring targets and new initiatives to broad – base our products’ portfolio. This ambitious spirit
is reflected in the aggressive, non-compromising growth the brand has achieved nationwide.
Targeting high growth in terms of revenues over the years in the domestic market, there has been
a quantum increase in both distribution and sales.

Passion towards Corporate Brand Building

SHANGRILA is the leader in producing nutritious, innovative, halal and tayyab food products
within its categories, and since long, it enjoys nationally acknowledged patronage.
SHANGRILA, as a brand, appreciates every honor it receives, and works hard to ensure that its
award-winning standards remain high, but there’s nothing quite like being recognized as a good,
fair place to work at. As a company it treats its employees and community with the respect and
gratitude they deserve.
Mission and Vision
At Shangrila, we believe that our organization is accountable to our Creator, people and business
partners; and pledge to contribute to the betterment of environment and culture where we produce
and distribute our products.

We, as a food and beverage company serve customers and consumers across the globe; to provide great
tasting, Halal, Hygienic (Tayyab), Nutritious and convenient food, produced with international quality
standards, with continuous research and development, at great value for money.

We strive to become a Sharia Compliant, innovative, technologically advanced and the most preferred
brand in the product categories we decide to enter in; while leading the way for a healthier society.
Product Portfolio

Tomato Ketchup:

Tomato Ketchup

Hot & Spicy Ketchup

Sauces:

Garlic Chilli Sauce

Imli Ginger Sauce

Bar.B.Q Sauce

Green Chilli Sauce

Seasonings:

Soy Sauce

Hot Sauce

Synthetic Vinegar

Worcestershire Sauce

Pickles in Oil:

Mixed Pickle

Hyderabadi Pickle

Mango Pickle

Mixed Pickle Paste

Drinks:

Fruiti-O Juices
Marketing Mix
PRODUCT

 Shangrila Tomato Ketchup is a distinctive blend of ripe tomatoes and natural spices with
relishing taste. Our specialized processing ensures that the original taste, nutrients and aroma of
tomatoes and spices are fully preserved. Shangrila Tomato Ketchup is an ideal table-top
condiment that makes all varieties of food and snacks tastier and delicious, particularly fried and
broasted items.
 Spice up your life with an array of Shangrila Sauces, just what every snack needs! Prepared from
selected and fresh tomatoes, chilies, garlic, tamarind and ginger under strict hygienic conditions,
Shangrila sauces heighten the taste of your cuisines. So add some extra zest to your everyday
meals with Shangrila Garlic Chilli Sauce, Imli Ginger Sauce, BBQ Sauce, Green Chilli Sauce and
Hot & Spicy Ketchup!
 From your kitchen to the dining table, Shangrila’s all-purpose seasonings can be used to make
ordinary dishes taste great. Prepared with fine, pure and extraordinary ingredients, Shangrila
Seasonings bring flavor to foods you love. Whether it is our Hot, Soy or Worcestershire Sauce,
Shangrila Seasonings can be used to enhance meat, fish and poultry dishes, as well as snacks,
soups, sauces and gravies. Our Synthetic Vinegar is an effective marinating agent too besides an
excellent disinfecting and de-greasing agent for cooking utensils!
 Shangrila Pickle is made of superior quality vegetable oil, selected mangoes, vegetables and
spices. Shangrila Pickles have won the hearts of consumers due to its stability and consistence in
taste, aroma and freshness for a longer time period. Shangrila pickles are preferred for
enhancing the taste of food.
 Fuiti-O Juices.

PLACE

Local food restaurants such as 14th street Pizza, Broadway pizza, Burgers and Sandwiches etc.
are used to deliver the products promised by Shangrila foods. Not only these, but the local
markets (shops and marts) also get it delivered in bulks.

PROMOTION

Following are the previously used promotion marketing campaigns used by Shangrila Pvt. Ltd:

 In-house Media Studio

 Dawn Lifestyle Campaigns

  Kids Exhibition

 Gulfood in Dubai UAE

 Hoardings/ Billboards/ Gantry

 Mobile Branding

PRICING

The pricing of Shangrila varies from product to product, time to time. With the rising
competition and Shangrila receiving the upper hand, it some gets to lead the prices.

Competition
Shangrila has been persistently taking on the tough situation in the industry, and has managed to
create depth, as well as width for itself, moving at a good pace if not faster than
rivals/competitors.

With a phenomenal multifold-fold rise, Shangrila (Pvt.) Limited has become Shangrila Ketchup
without being endorsed by any celebrity or person, because this brand represents an Islamic
brand that values the norms and cultures of Pakistan.

Following are the competitors of Shangrila Pvt. Ltd:

 National Foods

 Knorr Pakistan

 Mitchell’s Fruit Farms

 Ahmed Foods

 Shan Foods

 Heinz

Shangrila overcomes this competition by focusing on the strengths and weakness of the
competitors and dealing with efficiently.
Segmentation
Segmentation means to divide the marketplace into parts, or segments, which are definable,
accessible, actionable, and profitable and have a growth potential. The main segmentation
variables for consumer markets are: Geographic (region, city, rural and semi-urban areas),
Demographic (age, family size, gender, income, occupation, education, and socio-economic
classification), Psychographic (lifestyle, personality) and Behavioral (occasions, benefits, user
status, usage rate, loyalty status, attitude toward product)

Geographical Segmentation: The company has differentiated its product lines based on
different regions in Pakistan targeting every province and in rare cases, individual cities because
the packaging, design and even taste of their products vary according to different regions.
Furthermore, Shangrila is Pakistan’s first halal certified company and exports its products to
places like USA, Canada, UK, EU, Middle East and Africa to cater to Pakistani and Muslim
people living abroad who want their food to be halal and taste a certain way.

Demographic Segmentation: Shangrila focuses on the different age groups who consume their
products for e.g. sweet ketchup for children and spicy ketchup for adults. They have different
product sizes to cater to families of all sizes. Their products are affordable for the value they
provide. They have segmented the market in socio-economic classes and targeting A B and C
economic classes.

Psychographic Segmentation: Shangrila likes to focus on CSR, education and health sector.
They have sponsored Dawn’s Spelling Bee events since a few years as well as the Pakistan
Scrabble association; they have also collaborated with the Indus Hospital, The Intellect School
from time to time for good causes. This shows us that Shangrila wants to be recognized as a
socially responsible company who cares about the prevailing issues in Pakistan and thus wants to
connect with customers who share the same values and perceptions. Moreover, they are
religiously inclined; they focus a lot on their products being halal and are proud to be Shariah
compliant. Shangrila does not sponsor entertainment sector (events and shows) since it goes
against its values.

Behavioral Segmentation: Shangrila has a range of flavors in each category to provide a wider
range of choice for different people with different tastes and preferences.

They avoid making TV commercials and the usage of radio in terms of marketing (unlike most
brands) instead they make use of the social networking websites i.e., Facebook, Instagram,
Twitter etc. Shangrila participates in food festivals to further expand their name and usage.
Advertisements are played on screens (on roads) and in buses, that’s how they cover the mass
market to create awareness about their products, by using these stations instead of TV
commercials. They give consumers a real life brand experience by providing sample products
whenever a new product is launched.

Targeting
Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments consisting of the customers whose needs and
desires most closely match your product or service. Shangrila focuses on mass marketing when it
comes to customers all around Pakistan.

1) Children aged 6 to 13 are targeted in their line of ketchups; the packaging, design and taste are
according to the needs of these age groups

2) Adults aged above 22 are targeted through their line of achaar; taste preferences of the
customers are kept on a continuous study.

3) The product varies in taste and packaging in different provinces all around Pakistan.

Positioning
Positioning is the act of designing a company’s offering and image to occupy a distinctive place
in the minds of the customer. Shangrila as a brand has evolved through time and has developed a
relationship with its customers as the brand ranked in terms of reliability, quality, health, halal,
hygiene and nutrition. Also, consumer feel only proud if a brand delivers what it promises and
Shangrila feels proud as being to deliver so far what Shangrila stands for. Shangrila focus on
different target groups based on different categories. Difference comes with the difference in
category. Consumers are aware that Shangrila is good national brand which comes under the top
three in the industry.
CONSUMER ANALYSIS

Strengths

Strength of any company is the core competency that differentiates it from its competitors.
Shangrila's strength lies in their production empire which has imported plants and factories; the
unique pouch Shangrila uses for its ketchup is a product of their plant which was established in
Lahore in 2012.

Weaknesses

Weakness is its non-usage of media marketing which is only limited to social media because of
their Shariah compliance policy in the company. However, their vision as a Shariah compliance
company does give them an edge in Pakistan.

Opportunity

Like any other company that is well established in the market, Shangrila always has many
opportunities coming its way. The company is focusing on breaking in the market of frozen food
items. Other than that, Shangrila also identifies them to be a big business in the field internet
selling in the future, which too, is an opportunity Shangrila considers to be potentiated.

Threats

Like any other business Shangrila considers its competitors its threats along with the fact that the
market is rapidly changing; there's a lot of competition in the market and every business brings
something new which is why it becomes to be updated with the market.

Unique Selling Proposition

In a competitive food market like Pakistan one should differentiate its product to get a desire
market share. Every product has a different USP. Shangrila’s USP is its “Taste”. Shangrila
Tomato ketchup is blend of high tomato pulp and natural spices which brings the right taste and
aroma. Shangrila Tomato Ketchup is an ideal table-top condiment that makes all varieties of
food and snacks tastier and delicious, particularly fried and roasted items. Shangrila follows a
strict procedure for making product, they have hygienic and high-tech plants which produce and
maintain the high quality of the product .With minimal human interaction, both ketchup and
juices are produced and packed using state-of-the-art technology.

Brand Mantra
Shangrila has a rich set of association with consumers, based on its innovative products and
flavors. Shangrila adopted brand mantra of “Halal, Tayyab and Nutritious Condiments” to guide
the organizational efforts. Shangrila avoid making TV commercials and the usage of radio in
terms of marketing and avoid sponsoring entertainment programs such as musical concerts etc.-
following Sharia. Shangrila has designed its brand mantra to capture the brand’s point of
difference that is their USP.

Brand Positioning Bull’s Eye

Transcript

Introduction

In 1988 Shangrila came into being, under the name ‘Young Shangrila’, now, both the companies,
‘Young Foods’ and ‘Shangrila foods’ are running separate businesses with different category
products. Initially it started as a family business. It has been 10 years since the separation and the
startup of Shangrila foods. Shangrila is basically a Ketchup company, they’re the pioneers of
pouch ketchups, initially they used to sell ketchups in bottles, but it’s been a while since they
introduced these new pouches, it’s the first company to use the stand alone policy (SAP), since it
was the first company to have introduced ‘pouches’ in Pakistan. Other than ketchup they’ve also
introduced Garlic sauce, imli sauce, and barbecue sauce, hot and spicy ketchup. Another
category includes seasonings used in cooking Chinese and continental food such as; soya sauce,
hot (chilli) sauce, vinegar. The next category includes; pickles, pickle paste (which resulted
excellently in the market) and also juices in every flavor which goes by the name ‘Fruiti-O’,
which is still being established in the local market.

Shangrila is Pakistan’s first halal certified company. Shangrila exports its products to Canada,
Australia, USA, etc. The progression of the company is very good, following the Sharia style.

How does Shangrila identify and cater the needs of their customers?

Shangrila Foods has a vast quantity of products. Each product is introduced as soon as the need
is identified. The market requirement and consumer need is identified and then worked upon. For
example when Shangrila ketchup was introduced, ketchup was already being imported in
Pakistan, produced by branded companies, but it settled and worked well in the market because it
had some sweet taste added to it which was liked by the children and so the demand for it
increased. A few years ago ‘hot and spicy’ flavored ketchup was introduced by Shangrila foods,
because it was felt that the customers required a new flavor. Similarly, before introducing the
pickle paste it was noticed that the junk in normal ‘Achars’ was annoying for the customers, so
when Shangrila introduced their pickle paste, they removed the junk, so a new problem was
identified, and a new solution was proposed. Similarly, new juice flavors are being introduced in
accordance with the demand of the customers.

How does Shangrila deal with the competitive market? To outstand competition?
Shangrila Foods uses integrated marketing communication. They avoid making TV commercials
and the usage of radio in terms of marketing instead they make great use of the social networking
websites i.e., Facebook, Instagram, twitter etc. And they also participate in food festivals to
further expand their name and usage. They avoid sponsoring musical events. Advertisements
played on screens (on roads) and in buses, that’s how they cover the mass market, by using these
stations instead of TV commercials. They give consumers a real life brand experience by
providing sample products whenever a new product is launched.

How is the competition in the market?

The competition is too much, especially in ketchup. They have an efficient plant for ketchup
making, which continuously produces ketchup without any interruptions. Mostly focus on
competing with well-built big brands and not on with small brands. The competition is mostly
with national brands.

What is the main focus of Shangrila in relevance with the customers? Target markets?

It may be seen in the advertisements that the focus in Ketchup ads is on housewives and kids and
similarly for juices it’s mostly college students and kids, gymnasts. Each product has a different
target market.

What are Shangrila’s top most segmentation techniques?

Each product in every category is segmented differently. If we talk about Ketchup, it is a product
for masses, mass marketing is followed. On a national level mass is being covered, for example
pickle paste is consumed more in KPK than in any other province and similarly juices are
consumed more in cities with hot weather, ketchup is consumed largely in Central Punjab,
Karachi etc.

What are the points of difference?

Every Product has a different USP. For example our ketchup is made of high pulp content as
compared to the market and our soya sauce goes through a strict process of brewing and
fermentation which brings out the best taste and the right aroma. We follow a strict procedure for
making our products which is not the case with other products available in the market. Moreover
every brand’s taste and quality differs.

How do you communicate the process with your customers?

Our product quality speaks for itself.

Is Shangrila consumer centric?

Absolutely! We have Halal, high quality products. The same products with lower quality are
available in the market at half prices but we do not compromise on quality provided to our
customers.

What are the points of parity?

It’s not something fixed, it can be present in many areas such as taste, processes, packaging, and
production and promotions since the product category is same. Every good brand uses paid
promotions, promotional offers. Good brands use high quality ingredients and technology and so
do we.

What is your core competency?

Hygienic and hi-tech plants produce high quality products.

How are Shangrila’s products positioned in the market and minds of the consumers?

Mass market. We focus on different target groups based on different categories. Difference
comes with the difference in category; some brands excel in a certain category while others excel
in another category. People are aware that we are good local brand who come under the top three
in the industry. We don’t say that we’re the number one but the same time we’re definitely not
behind.

Are your customers loyal to your brand?

People have different perceptions and priorities, some are price conscious and some prefer
quality over price. Our ‘Seasoning’ category is the most popular one and we definitely have loyal
customers for this category.

Shopping trends have considerably changed in the last decade. Children are more involved in
shopping than they used to be and Shangrila is very popular among the younger generation since
the taste appeals to them.

Loyalty is present and it helps us to grow. Moreover, we accept complaints and appreciate
feedback from our customers in order to keep them happy.

What are the intangible associations (value, personality or character) that help to establish
tone for the brand?

Brand itself is intangible. Oure marketing team is very active in campaigning and designing BTL
activities. The most important thing is that our message has a lasting impact.

Moreover, Shangrila likes to focus on CSR, education and health sector. We have sponsored
Dawn’s Spelling Bee events since a few years as well as the Pakistan Scrabble association; we
also collaborate with the Indus Hospital, The Intellect School from time to time for a good cause.
Does Shangrila focus on market research?

Shangrila has very strong market intelligence, we keep a check on the strategies of our
competitors and so do they. We also tend to do market research before launching a new product
which is extremely crucial for the product’s success.

What is the main strategy which made Shangrila a brand from a product?

There is not any one strategy but a combination of strategies over time. We have customer driver
approach which tries to cater to the changing needs of the people which is how this company has
been made profitable, our employees are driven by profits to work towards the betterment of the
company.

Shangrila is now a 3 billion plus company, which was not the case 6 or 7 years ago when
Shangrila used to a smaller. We started in 1988 with just one category which is seasoning now
we have considerably expanded in respect to our product range and profitability.