Shezan Report

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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.

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DEDICATION

We will dedicate our project to Almighty Allah who teaches us and enables us to standwhere 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.

Table of Contents

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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

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Company’s 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 vegetablesS 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 Groupof 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

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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

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“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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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 & ENVIRONMENTWe 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

Organization Chart

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LEADERSHIPWe 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



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

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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

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Types of Products

Local Consumer Products Exports



4- Twist

5-Syrups 8- Sauces

6 -NR-Bottles 9- Jams

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7-Vinegar 10- Quench

11-Squashes

12- Mango Nectar

13-Pickles

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13-Ispaghol

Marketing Analysis Of

Shezan Twist juice

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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."

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4 P’S OF MARKETING MIX

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Marketing Mix

Product Price Placement Promotion



Product

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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 available to target customers.PLACE

Promotion is the activities that communicate

merits of the product and persuade target

customers to buy it.ROMOTIO

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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

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

C 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.

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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

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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

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• 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

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.

No.Machine Capacity Local/Imported

1 Tetra Pak –TBA 197500 packs of

250 ml/ hr Tetra Pak

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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

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The Target Market of the Product

The target market of Shezan twist juice includes teenagers. Basically they aretargeting the students of schools, Colleges and Universities.

Competition of the Product

Direct

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Indirect Competitors

+

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

Shipping Units

250 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%

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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.

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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

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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/-

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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

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• They have their own plant of tetra packing

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 • Local seller

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• Whole seller

• Zonal offices

• Company

• Fair Price Shop

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

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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

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• 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

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• 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

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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:-

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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

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

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• 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

• Modification according to present requirement

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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

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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

• 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

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• The Currency Value of the Pakistan is low

• This product is seasonal

• They are paying high taxes in exporting

• Discount offered by the competitors

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

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• 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.

Recommendations

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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.

Company Owned

Distribution House

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/-

Prepared By:

[email protected]

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Schools

Colleges

Universities

mailto:[email protected]




[email protected]

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Documents

Shezan Report