Acknowledgement

PAGE 24

University Of Agriculture

Marketing plan SHEZAN

Amna Saeed2010-ag-927

Brief HistoryShezan Company was incorporated on May 13, 1964 as a private limited company, with the objectives as set out in the Memorandum of Association in general and in particular to set up an industrial understanding for manufacture of juices, squashes, sharbats, jams pickles and preserves from fruits and vegetables

Nature has blessed Pakistan with an ideal climate for a wide range of delicious fruits. Over the centuries Pakistani experts have acquired and developed unique strains of exotic fruit varieties, unmatched for their rich flavor and taste

The Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A in1964 conceived Shezan International Limited as a joint venture. 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 in 1983 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 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.Product Range

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

Products can be divided into the following

Local Consumer ProductsFollowing are the major products that Shezan is producing currently:

1- All Pure2- Juice Bottles3- Regular Juice4- Twist 5-Syrups

6- Sauces 7 -NR-Bottles 8- Jams

9-Vinegar 10-Quench11-SquashesSECTOR & INDUSTRYANALYSISSECTOR CHARACTERISTICS AND OVERVIEWAgriculture sector highly depends on the weather circumstances. God has gifted Pakistan with several varieties of fruits and vegetables. Modern processing and packaging techniques make seasonal fruits and vegetables available all year round to almost all parts of the globe. Tropical fruit like mangoes can be enjoyed in temperate countries. Today, the world horticulture industry is a $77 billion market comprising of the following sub sectors.

Vegetables; fresh or preserved

Fruits and nuts; fresh or preserved (excluding oil nuts)

Fruit and vegetable juices (unfermented).

Spices

Bulbs, tubers, rhizomes of flowerings

Cut flowers and foliageProvincial fresh fruits production share is provided below:Province % Share Punjab 59.6

Sindh 8.6

NWFP 6.2

Balochistan 25.6

Marketing Analysis Of

Shezan Twist juice

Product

Marketing Mix

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

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

Comprising of a blend of different fruit juices, shezan`s Twist juices open the door to a whole new world of possibilities. Available in easy to drink slim packing twist juices are a must have in every household

Nature of the product

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

Ingredients in Shezan Twist Juice (Product)

Energy

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 dietProduct 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.

Competition of the Product

Direct

Indirect Competitors

+

All other international brands. They Comprise 2% of total marketShipping Units250 ml36 Packs per carton

(6*6 Wrapped Packing)

Market and Positioning Of the Product

The market is highly saturated in the drink, which are ready to use

Performance in the Market of the Product

Brand

Market Share

Nestle juice

45%

Country juice

5%

Tropico Juice 18%

Shezan Twist juice

35% International 02%

Pricing

What Is "Price"?

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

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

Current Price The current price of one 250ml pack of Twist is Rs.15/-

When we purchase 3dozen of 250ml of Twist than the price of this is Rs.468/-

Available Size of Shezan Twist Juice

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

Price Control

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

Overall Distributor or Whole Seller Margin 07-10%Retailers Margin 12-15%

SourcePurchase PriceSale PriceProfit

School, Colleges and Universities 12153

Whole Seller1212.90.90

Retailer12.90152.10

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

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 costDifferential Advantages the Company Have 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 packingPLACEMENT

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.

Distribution Strategy

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

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

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

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:-

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:-

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

SWOT ANALYSIS Strengths

Conveniently placed factory

Pure and natural products

Qualified sales staff

Strong financial backup

Good distribution net work

Effective advertisement campaignWeakness

Due to high rate of taxes our process are higher

Tax evaders sell product on much less prices and retailers blackmail for better profit marginsOpportunities Expansion of distribution net work Diversification of product Addition of new varieties Modification according to present requirementThreats

Discount offered by competitors

Low quality food products on cheap prices

WTO

Less awareness of health

Nutritional facts of products with consumer

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.

Exports

Local Consumer Products

Types of Products

Promotion

Placement

Price

Product

Marketing Mix