Shezan by Waseem Aslam

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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 thankHamood-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. Topics Page

1.0 Company Profile 3

2.0 Brief History 4

2.1 Vision & Mission Statement 5

2.2 Product Range 6

3.0 Marketing Mix 12

3.1 Product 12

3.2 Price 20

3.3 Placement 24

3.4 Promotion 27

4.0 Environmental Analysis 29

5.0 Swot Analysis (By Company) 30

6.0 Swot Analysis (Self) 32

7.0 Conclusion 34

8.0 Recommendations 35



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Companys Profile



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Brief History

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 vegetablesSNature 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 agro-

based 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 countrys

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.



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Product RangeShezan 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

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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



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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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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 itneeds from the target market."

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



Marketing Mix

Product Price Placement Promotion

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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

CNature 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 127 cal

Total Fat 0.0 gm

Proteins 0.15 gm

Total Carb 32.5 gm

Sodium 1.5 mg

Sugar 31 gm

Vitamin C 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 pulpI) 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

machineryas it considered being highly sophisticated and hygienic

Machinery Used -Fruit Juice Filling & Packaging Line

S.

No.Machine Capacity Local/Imported

1 Tetra Pak TBA 197500 packs of

250 ml/ hrTetra 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



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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/- whilethe 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 ofone 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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Retailers Margin 12-15%

Source Purchase Price Sale Price Profit

School, Colleges and Universities 12 15 3

Whole Seller 12 12.90 .90

Retailer 12.90 15 2.10

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 Price Of the Juice

Nestle Juice Rs. 18/-



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Shezan Twist Juice Rs. 15/-

Country juice Rs. 12/-

Tropico Juice 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



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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



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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 Distributors

Lahore 200

Karachi 200

Islamabad 100

Total 500

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



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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



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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 75%

B. Printed media 25%

Environmental Analysis

1) The Company:-



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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



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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



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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



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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.



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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 caf owners will promote Twist

compared to other juices.

Company Owned

Distribution House



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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/-

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Shezan by Waseem Aslam

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