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Shezan Report by prittynazo

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this is a marketing report on shezan company in Pakistan

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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 Ms. Beenish who taught us “Marketing” with heart and also gave a
guideline to this report.




                                                                                      i
DEDICATION

We will dedicate our project to Almighty Allah who teaches us and enables us to stand
where we are. We would also like to dedicate it to our parents whose calm partnership
and prays encourage us to do what ever we determine.




                                                                                    ii
Table of Contents
    Serial No.                      Topics     Page

1                Company Profile                3

2                Brief History                  4

       2.1       Vision & Mission Statement     5

       2.2       Product Range                  6

3                Marketing Mix                  12

       3.1                          Product     12

       3.2                         Price        20

       3.3                         Placement    24

       3.4                         Promotion    27

4                Environmental Analysis         29

5                Swot Analysis (By Company)     30

6                Swot Analysis (Self)           32

7                Conclusion                     34

8                Recommendations                35




                                                      iii
Company’s Profile




                    iv
Brief History


S
         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 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

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 country’s
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


                                                                                          v
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”




                                                                             vi
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.”




                                                                             vii
We have an open disclosure policy and transparent processes. All our business activities / transactions, are carried
out honestly and with fairness.




Have passionate people with intelligent and firm approach towards business. To facilitate these people we give
them challenging opportunities, training, fun loving environment, necessary resources and facilities. We publicly
recognize our talent.




Innovation is the way of life at EFL. It is valued, encouraged and rewarded in all aspects of our operations.




We stand committed to sustainable business growth and ensure 100% compliance of CSR by ensuring the safety
of our people, assets and the community in which we operate. EFL takes significant strides in poverty alleviation -
both rural and urban, environmental safety and build up of farming expertise.




Consumer is the reason for our existence as a business.


SAFETY, HEALTH & ENVIRONMENT
We will manage and utilize resources and operations in such a way that the safety and health of our people, our
neighbors. Our customers and our visitors is ensured.




ETHICS AND INTEGRITY
We do care how results are achieved and will demonstrate honest and ethical behavior in all our activities




 LEADERSHIP                                                                                                  viii
 We have leaders of high integrity. energy and enthusiasm who have the necessary managerial, professional
 and people skills to inspire a group or an organization to set high goals and achieve them willingly
Organization Chart




                     ix
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




                                   Types of Products



    Local Consumer Products                                    Exports




Local Consumer Products

Following are the major products that Shezan is producing currently:

   1- All Pure




                                                                                        x
2- Juice Bottles




   3- Regular Juices




   4- Twist




    5-Syrups           8- Sauces




                                   xi
   6 -NR-Bottles   9- Jams




7-Vinegar          10- Quench




   11- Squashes




                                xii
12- Mango Nectar




13-Pickles




13- Ispaghol




                   xiii
Marketing Analysis Of

  Shezan Twist juice

      Product




                        xiv
                             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."




                                          Marketing Mix


            Product                  Price                Placement              Promotion




                                                                                         xv
4 P’S OF MARKETING MIX




                         xvi
             Product means the combinations of goods and services
             that company offers to the target market

 PRODUCT




             Price is the amount of money that customers are willing
             to pay to obtain the product.
   PRICE




             Place is the company’s activities that makes the product
   PLACE     available to target customers.




             Promotion is the activities that communicate merits of
             the product and persuade target customers to buy it.

 PROMOTION




Product
                                                                        xvii
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



              C
                         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

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.




                                                                                           xviii
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



                                                                         xix
Process of making

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 pulp

                      I) Pulp Storage in Tank

                      II) Sugar Hopper

                Pulp and ingredients mixing

                Syrup Storage in Tank

                Juice Preparation

                Juice Storage Tank

                Filling and Packaging

                                                                                          xx
Cooling and Storage




                      xxi
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
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
machinery as it considered being highly sophisticated and hygienic

                  Machinery Used -Fruit Juice Filling & Packaging Line

          S.
                Machine                        Capacity            Local/Imported
          No.


                                               7500 packs of
          1     Tetra Pak –TBA 19                                  Tetra Pak
                                               250 ml/ hr




                                                                                          xxii
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

   •   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




                                                                                  xxiii
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




                                                                                   xxiv
Indirect Competitors




                                           +

        All other international brands. They Comprise 2% of total market




Shipping Units

                                               36 Packs per carton
               250 ml
                                               (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%



                                                                            xxv
       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.

                                                                                      xxvi
Overall Distributor or Whole Seller Margin                         07-10%



Retailer’s 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




                                                                                          xxvii
                     Price Table with the Pure Competitor

       Name of the Company                   Price Of the Juice

Nestle Juice                                      Rs. 20/-

Shezan Twist Juice                                Rs. 15/-

Country juice                                     Rs. 12/-

Tropico Juice                                     Rs. 12/-




                                                                  xxviii
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

       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




                                                                                         xxix
Placement
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                                             Zonal offices

       Local seller                                       Company

       Whole seller                                       Fair Price Shop



                                                                                           xxx
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




                                                                                    31
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




                                                                                         32
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

                                                                                         33
       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%




                                                                                        34
                   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

BCG Matrices



                                                                                      35
      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

      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

                                                                                        36
     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


SWOT ANALYSIS (ACCORDING TO THE GROUP)
Strengths
     The Name of the company Shezan

     One of the oldest company in private sector

     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

                                                     37
     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

     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




                                                                         38
                                  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.




                                                                                     39
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 café owners will promote Twist
  compared to other juices.



                                                                             Schools
Company Owned
                                                                             Colleges
Distribution House
                                                                          Universities



  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/-



                                                                                           40
  Prepared By:

nicegirl_laj@hotmail.com

wardahkafeel@gmail.com




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