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
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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
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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
University Of Central Punjab PCBA/PICS
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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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