Shezan Report

INTERNATIONAL BUSINESS PROJECT REPORT SHEZAN INTERNATIONAL LIMITED

INTRODUCTIONCOMPANY: SHEZAN INTERNATIONAL LIMITEDPRODUCT: SHEZAN TOMATO KETCHUP

HISTORY: The company was incorporated in 1964 as a Private Limited Company, with the main objective to set up an industrial under taking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from fruits and vegetables. Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A. The agricultural background of the Pakistani sponsors induced them to establish this agro-based industry. Taking advantage of abundance of fruits available in Pakistan and the advanced technology provided by the American partners, Shezan became a pioneer 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 local as well as export needs. In 1971, Shahnawaz group purchased all the shares of Alliance Industrial Development Corporation. The company has since shown sustained growth in both domestic and export fields. In 1980-1981 a separate unit was installed in Karachi which now caters for Karachi, Sindh and export demand. A new bottle filling plant was set in 1983 in the Lahore unit, increasing the capacity fivefold. An independent Tetra Brick plant was commissioned in 1987 making the unit leading manufacturers with the comprehensive range of production in the fruit processing field in Pakistan.

In the year 1990 it was decided to install a juice factory at the Hattar industrial estate in North West Frontier Province of Pakistan. In order to take advantage of the government incentive new wholly owned subsidiary of Shezan International Limited was incorporated as Hattar Fruit Products Limited which was later merged into the parent company .Complete bottling plant locally manufactured along with four lines of Tetra Pak was installed, three are filling 250 ml juices and one line is for 1000 ml packs. In all respects the subsidiary is now a complete unit and is manufacturing the complete range of Shezan products except for pickles and canned products.

CORPORATE MANAGEMENT

Board of Directors:Mr. Muneer Nawaz Mr. Saifi Chaudhry Mrs. Majeeda BegumMr. Mahmood Nawaz

SHEZAN TOMATO KETCHUP


Mr. C. M. KhalidMr. M. NaeemMr. Muhammad KhalidMr. Muhammad Nawaz Tishna Mr. Muhammad Asif

Executive Director & Company Secretary:Mr. Muhammad Khalid

Chief Financial Officer:Mr. Faisal Ahmad Nisar, ACAAudit Committee:Mr. Muneer NawazMr. Muhammad KhalidMr. Muhammad AsifMr. Sajid Hussain Syed

Registered Office / Head Office:56 - Bund Road,Lahore-54500.

Factories:• 56 - Bund Road,Lahore-54500.

Auditors:Messrs. Ford Rhodes Sidat Hyder & CompanyChartered Accountants,Mall View Building,4 - Bank Square, Lahore.

Legal Advisors:Messrs. Cornelius, Lane & Mufti,Nawa-e-Waqt Building,Shahrah-e-Fatima Jinnah, Lahore.Messrs. Sukhera Law Associates,7-B, Turner Road, Lahore.

Bankers:United Bank Limited.Muslim Commercial Bank.National Bank of Pakistan.The Bank of Khyber.Citibank N.A.Bank AI-Habib.Habib Bank Limited.



M I S S I O NA statement of the organizations purposes is what it wants to accomplish in the larger environment.

1. Company Mission Statement:The mission is to be the largest food processing unit having developed and installed the capacity to meet the country's local as well as export needs.

2. Market Oriented Mission:They want to be the recognized industry leader in quality and services. Providing more than expected for their customers, employees and stakeholder. They will accomplish this by maintaining a tradition of pride in their products growth through innovation integrity in the management of their business and commitment to team management and quality improvement process.

3. Product Oriented Mission:The company’s mission is to provide the highest quality fruit and vegetable related juices and products to retail and food services customers.•Sweet and Sour•Fresh and Refreshing•Rich in vitamin

V I S I O NTo be known leader of quality products in the region.Dedication to quality is a way of life at our company, so much so that it goes for beyond rhetorical slogans. It is the objectives of Shezan International Limited to produce and provide products and services of the highest quality. In its activities the company will pursue goals aimed at the achievement of quality excellence and succeed as a 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. The company is aiming to pay its role in the economic development of the country and to enhance the living standard of the people.

M A I N P R O D U C T S The company started its business mainly from the juices as pioneer in juices in Pakistan, with the passage of time by the increasing demand of its products; it introduces various types of food products and sustained their standards accordingly. Shezan is mainly manufacturing and dealing following line of products.•Chutnies•Cooked Food•Fresh Fruits Juices•Jams, Jellies, Marmalades•Pickles in Oil and Vinegar•Tomato Ketchup and Sauces



•Vinegars•N.R. Bottles 240ml•Twist Juices 250ml•Tetra Juice 250ml•All Pure 1000ml•Squashes 735ml

S W O T A N A L Y S I S : An overall evaluation of the company’s strength (S), weaknesses (W),opportunities (O) and threats (T) is called SWOT analysis. The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. The following is SWOT analysis of our company.

S T R E N G T H S :Strengths refer to those activities that a company performs better than its competitors. Strength basically means “the core competency of the company.”The following points are our company’s strength:•Owners who are passionate about their work, they emphasizes internal growth meaning they wants to achieve higher volumes by renovating existing products, and innovating new products.•We have a great research and development team.•Our product is of best quality. This is pure and natural product.•We offer different sizes ranging from a single small pack to family size packages.•Trendy packing Convenient placed factory•Qualified sales staff •Strong financial backup•Good distribution network •Effective advertisement campaign.

W E A K N E S S E S S :Weaknesses are the activities that the firm does not do well or the resources it needs but does not possess. It also includes the factors that cause losses, hardships, disputes and complaints for a business. The following are our company’s weaknesses:•Due to high rate of taxes our prices are relatively higherTax evaders sell products on much less prices and resellers blackmail for better profit margins•Low promotional budgets•There is lack of campaign regarding the nutritional benefits of our product.•There is no proper setup of creating awareness among the people regarding the products.

O P P O R T U N I T I E S :



These are the directions that the business could profitably take in future because of its strengths or because of the elimination of its weaknesses. The following are opportunities for our company.•Our company has an opportunity of being even a larger market leader in Pakistan since our other juices are very much popular among almost every age group and with the launch of Twist juices we hope to cover a large group of teenagers.•Expansion of distribution network •Diversification of products•Addition of new veritiesModifications according to present requirements.

T H R E A T S :A threat to a business arises from the activities of competitors and from failing to avail opportunities because of so many reasons like political instability and economic and financial crises etc. The following are the threats that our company is facing.•Discounts offered by competitors•Low quality food products on cheap prices•Less awareness of health among people•World Trade Organization (WTO)•Intense competition in juice market in Pakistan•Nestle Brand•Nutritional facts of the products with consumer.



TOMATO KETCHUP



SHEZAN TOMATO KETCHUPShezan Tomato Ketchup is made from only the ripest, red tomatoes. Shezan Tomato Ketchup is a must with every meal.

MARKETING PLAN The set of controllable tactical marketing tools, product, price, place and promotion that the firm blends to produce the response it wants in the target market. Our company's marketing mix is comprised of the following approach to pricing, distribution, advertising and promotion, and customer service.

P R O D U C T S T R A T E G YProduct is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a want. The product on which we are focusing for marketing mix analysis is Shezan Tomato Ketchup.There is 60% natural pulp of tomato and only 40% acids are used in the manufacturing of Shezan Tomato Ketchup while regular Ketchups are composed of only 15% tomato pulp and 85% acids. Shezan Tomato Ketchup is the product that is introduced in slim glass bottle and in pouch packaging .

P R I C I N G S T R A T E G Y Price is the amount of money charged for a product or the sum of the values that consumers exchange for the benefits of having or using the product. Product bundle pricing can also prove to be effective Product bundle pricing is combining several products and offering the bundle at a reduced price. As we are offering Shezan Tomato Ketchup in slim and stylish packaging with very reasonable and affordable price for every one as compared to our competitors so it is becoming very popular among peoples. The features and nutritional factors are very conducive to health of human body with such reasonable prices. By similar qualities lowering the prices we are trying to get edge over our main competitor Nestle.

P L A C E M E N T S T R A T E G YWhen we talk about this component of the marketing mix we are referring to the way the product is made available to the final consumer after it is produced. It consists of the network made up of the company, suppliers, distributors and ultimately customers. Our customers can get our products from:•Front Line Shelves in Shops (by offering more marginal benefits to the shopkeepers).•In all large Super Stores & Shopping Malls of the city.•In all areas of the cities.•In the cafes of different educational institutions both at lower and higher levels.



P R O M O T I O N S T R A T E G YAfter carefully studying the different aspects of market in Pakistan what we have found out is that promotion is very important towards success. In promotion we basically have advertising in our minds which is any paid form of non personal presentation and promotion of ideas or goods by an identified sponsor. Through advertisement we want to make the public aware that this product is available in the market at this price. Now we would like to persuade the public into buying our product. We would persuade them that our product has better features and they should buy this. We would want to keep reminding the public that our product is available in the market and they should buy it as it offers them greater utility. This is done so that the customer keeps the product in his mind and knows where it is available.

-METHODS USED FOR PROMOTION:

ELETRONIC MEDIA:Electronic media has the greatest degree of influence for customers. It has good mass market coverage while it combines sight, sound and motion appealing to the senses. We will give ads and these will be shown in all cities where television is available. This will enable the firm to create awareness of “Shezan Tomato Ketchup” and also promote it in the eyes of the customer.

PRINT MEDIA:Print media is an important source with flexibility, timeliness, good local market coverage, broad acceptability and high believability. Posters at the point of sales can increase impulse purchase. We will place banner sat various busy locations of the cities People who have come to the shop have no intention to buy that good but the poster there is so attractive that it induces the customer into buying that product. And besides these we will distribute our ketchup free at Some Places like(Educational Institutions, Markets & Shopping Malls) and setup stalls in various Fun-Fairs for the Marketing of “Shezan Tomato Ketchup”.

MARKETING ANALYSIS As marketing is defined as the identifying the needs, wants and demands of the customers and delivering the customer value and customer satisfaction, it has a great impact on the success of any business. As far as our company’s marketing analysis is concerned regarding Shezan Tomato Ketchup the company is delivering what the customers exactly want from it. The company’s strategic planning is exactly in accordance with the mission and goal of the company. The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies. The company’s strategic objectives are as follows:•Maintain positive, steady growth each quarter.•Experience a growth in new customers who are turned into long-term customers.•Realize an increase in occupancy each subsequent year.



CUSTOMER DRIVEN MARKETING STRATEGYCustomer driven marketing strategy refers the strategy focusing the customer values and customer satisfaction. Company’s main purpose is to deliver the maximum benefit to its customers in minimum cost. In this regard company carries out following steps for its product and for its customers.•Market Segmentation•Market Targeting•Market Positioning

COMPETITIVE ANALYSIS In this analysis the company see that how can they take edge over their competitors. As far as the competitors of Shezan are concerned there are many competitors of Shezan in Food Items and in Regular juices. But as we are offering Shezan Tomato Ketchup the Nestle juices are only competitors.

HOW WE ARE GETTING EDGE OVER OUR COMPETITOR?Our company is getting edge over its competitors by following these tact and steps; then• Shezan Tomato Ketchup is offered at lower prices as compared to our competitor.•The company has edge over its competitors of launching it s product in the market first.•The retailer earns more profit by selling our product analyze.• Shezan Tomato Ketchup comprises of 60% original pulp of Tomato as copared to others (which is manufactured with artificial flavors).

EXPORT TO INDIAThe country that I choose for the export of Shezan Tomato Ketchup is INDIA because of the following PEST analysis:

PEST ANALYSIS OF INDIAPOLITICAL ANALYSIS:India is the world's most populous democracy. India is a federation with a parliamentary system governed under the Constitution of India, which serves as the country's supreme legal document. It is a constitutional republic and representative democracy, in which "majority rule is tempered by minority rights protected by law". Federalism in India defines the power distribution between the federal government and the states. The government abides by constitutional checks and balances. The Constitution of India, which came into effect on 26 January 1950, states in its preamble that India is a sovereign, socialist, secular, democratic republic. India's form of government, traditionally described as "quasi-federal" with a strong centre and weak states, has grown increasingly federal since the late 1990s as a result of political, economic, and social changes.


http://en.wikipedia.org/wiki/Republic

http://en.wikipedia.org/wiki/Liberal_democracy

http://en.wikipedia.org/wiki/Secularism

http://en.wikipedia.org/wiki/Socialism

http://en.wikipedia.org/wiki/Sovereignty

http://en.wikipedia.org/wiki/Preamble_to_the_Constitution_of_India

http://en.wikipedia.org/wiki/Separation_of_powers

http://en.wikipedia.org/wiki/States_and_territories_of_India

http://en.wikipedia.org/wiki/Federalism#India

http://en.wikipedia.org/wiki/Federalism#India

http://en.wikipedia.org/wiki/Law_of_India

http://en.wikipedia.org/wiki/Minority_rights

http://en.wikipedia.org/wiki/Majority_rule

http://en.wikipedia.org/wiki/Representative_democracy

http://en.wikipedia.org/wiki/Constitutional_republic

http://en.wikipedia.org/wiki/Constitution_of_India

http://en.wikipedia.org/wiki/Parliamentary_system

http://en.wikipedia.org/wiki/Parliamentary_system

http://en.wikipedia.org/wiki/Federation


ECONOMIC ANALYSIS:According to the International Monetary Fund, as of 2011, the Indian economy is nominally worth US$1.843 trillion; it is the tenth-largest economy by market exchange rates, and is, at US$4.469 trillion, the third-largest by purchasing power parity, or PPP. With its average annual GDP growth rate of 5.8% over the past two decades, and reaching 10.4% during 2010, India is one of the world's fastest-growing economies. However, the country ranks 138th in the world in nominal GDP per capita and 129th in GDP per capita at PPP. Until 1991, all Indian governments followed protectionist policies that were influenced by socialist economics. Widespread state intervention and regulation largely walled the economy off from the outside world. An acute balance of payments crisis in 1991 forced the nation to liberalize its economy; since then it has slowly moved towards a free-market system by emphasizing both foreign trade and direct investment inflows. India's recent economic model is largely capitalist. The 467-million worker Indian labor force is the world's second-largest.

SOCIAL ANALYSIS:Traditional Indian society is defined by relatively strict social hierarchy. The Indian caste system embodies much of the social stratification and many of the social restrictions found in the Indian subcontinent. Social classes are defined by thousands of endogamous hereditary groups, often termed as jātis, or "castes".

TECHNOLOGICAL ANALYSIS:The rush of technology and the commercialization of agriculture in the second half of the 19th century was marked by economic setbacks—many small farmers became dependent on the whims of far-away markets. There was an increase in the number of large-scale famines, and, despite the risks of infrastructure development borne by Indian taxpayers, little industrial employment was generated for Indians. There were also salutary effects: commercial cropping, especially in the newly canalled Punjab, led to increased food production for internal consumption. India's sustained democratic freedoms are unique among the world's new nations; however, in spite of its recent economic successes, freedom from want for its disadvantaged population remains a goal yet to be achieved.


http://en.wikipedia.org/wiki/Famine_in_India

http://en.wikipedia.org/wiki/J%C4%81ti

http://en.wikipedia.org/wiki/Caste_system_in_India

http://en.wikipedia.org/wiki/Caste_system_in_India

http://en.wikipedia.org/wiki/List_of_countries_by_labour_force

http://en.wikipedia.org/wiki/Labour_in_India

http://en.wikipedia.org/wiki/Economic_liberalisation_in_India

http://en.wikipedia.org/wiki/1991_India_economic_crisis

http://en.wikipedia.org/wiki/Licence_Raj

http://en.wikipedia.org/wiki/Protectionism

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)

http://en.wikipedia.org/wiki/Purchasing_power_parity


FINANCIAL PLANShezan Tomato Ketchup is available in five different packaging and sizes which are mention below:

1. One carton of 4.4kg can contains 4 cans.

4.4kg Rs.400x4= Rs.1600/carton.

2. One carton of 1kg pouch contains 12 pouches.

1kg Rs.130x12= Rs.1560/carton.

3. One carton of 830gm bottle contains 12 bottles.

830gm Rs.125x12= Rs.1500/carton.

4. One carton of 500gm pouch contains 24 pouches.


5. One carton of 305gm bottle contains 12 bottles.


FINANCIAL PLAN OF 2012No. Size 1 carton price Cartons export sales

1. 4.4kg 1600 8000 12800000

2. 1kg 1560 8000 12480000

3. 830gm 1500 8000 12000000

4. 500gm 2160 5000 10800000

5. 305gm 840 8000 6720000

Total sales= 54800000



Shezan International LTD.

Income Statement

For the Year Ended December 31, 2012

Sales………………………………………………………………………………………….. 54800000

Cost of Goods sold:

Composition:

Ripe tomatoes……………………………….7124000

Sugar…………………………………………….3288000

Salt………………………………………………..1644000

Spices…………………………………………….4384000

Preservative(Sodium Benzoate)…….1644000

Food color(E-110 & E-123)……………1096000

Less: COGS…………………………………………………………………………………(19180000)

Gross Profit……………………………………………………………………….……….35620000

Expenses:

Administrative Expenses:

Salaries…………………………………….…..3288000

Other Expenses……………………………..2740000

Electricity………………………………………2192000

Marketing Expenses:

Advertising Expense………………………5480000

Promotional Expense……………………..3836000

Incentives……………………………………….2192000



Salaries and Expense of sales force.....4932000

Discount ………………………………………..5480000

Less: Total Expenses………………………………………………………………….(30140000)

Earning before income tax………………………………………………………….5480000

Less: taxes………………………………………………………………………………….(3836000)

Net profit……………………………………………………………………………………1644000


1. 4.4kg 1600 7000 11200000

2. 1kg 1560 6000 9360000

3. 830gm 1500 6000 9000000

4. 500gm 2160 4500 9720000

5. 305gm 840 7500 6300000





Income Statement


Sales………………………………………………………………………………………….. 45580000

Cost of Goods sold:

Composition:

Ripe tomatoes……………………………….5925400

Sugar…………………………………………….2734800

Salt………………………………………………..1367400

Spices…………………………………………….3646400


Food color(E-110 & E-123)……………911600

Less: COGS…………………………………………………………………………………(15953000)

Gross Profit……………………………………………………………………….……….29627000

Expenses:


Salaries…………………………………….…..2734800

Other Expenses……………………………..2279000

Electricity………………………………………1823200

Marketing Expenses:



Incentives……………………………………….1823200



Salaries and Expense of sales force.....412200

Discount ………………………………………..4558000



Less: taxes………………………………………………………………………………….(5013800)

Net profit……………………………………………………………………………………3234200


1. 4.4kg 1600 5000 8000000

2. 1kg 1560 8000 12480000

3. 830gm 1500 8000 12000000

4. 500gm 2160 3000 6480000

5. 305gm 840 9500 7980000





Income Statement


Sales…………………………………………………………………………………………..46940000

Cost of Goods sold:

Composition:

Ripe tomatoes……………………………….6102200

Sugar……………………………………………2816400

Salt………………………………………………..1408200

Spices…………………………………………….3755200


Food color(E-110 & E-123)……………938800

Less: COGS…………………………………………………………………………………(1642900)

Gross Profit……………………………………………………………………….………. 30511000

Expenses:


Salaries…………………………………….…..2816400

Other Expenses…………………………….2347000

Electricity………………………………………1877600

Marketing Expenses:



Incentives……………………………………….1877600



Salaries and Expense of sales force....4224600

Discount ………………………………………..7041000



Less: taxes………………………………………………………………………………….(7979800)

Net profit……………………………………………………………………………………(5632800)


Shezan Report

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