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FPCCI BEST EXPORT BRAND AWARD
Best export brand award given to the business person on the bases of
Year of introduction of bran
Brand description
Brand scope
Market target(national or international)
Foreign collaboration
Total export of this brand
FPCCI AWARD FOR LAST FIVE YEAR 2009-2013
Category Brand / company name and detail Export type/ volume
Best export
award (2012-2013
2009-2010)
1 MEHRAN SPICE & FOOD INDUSTRIES
EXPORT OF SPICES & SPICE MIXES
PLOT NO. 14 & 15, SECTOR -24
KORANGI INDUSTRIAL AREA
KARACHI
TEL: 021-35076841-50
FAX: 021-35034455
EML: [email protected]
3,010,000,0003 BILLION
Best Export
Brand
Award(2011-
2012)
HAJI MUHAMMAD YOUNUS CHAIRMAN
SUPER POWER (MOTORCYCLES, N. J.
AUTO INDUSTRIES (PRIVATE) LIMITED
AUTO RICKSHAWS & SPARE PARTS) PLOT
# F120, HUB RIVER ROAD S.I.T.E. KARACHI
TEL: 021-32564813-16
FAX: 021-32579843
SUPER POWER
(MOTORCYCLES,
N. J. AUTO
INDUSTRIES
(PRIVATE)
LIMITED AUTO
RICKSHAWS &
SPARE PARTS)
Brand of the year Shan foods SPICE & FOOD 28000000000
BEST EXPORTER TROPHY(2007-2008) M.M Rice Mills (Pvt) Ltd. 157,733 metric ton
1-MEHRAN FOODS
OVERVIEW OF THE SPICE INDUSTRY OF PAKISTAN
Food industry around the globe comprises a niche within itself, referred to as ‘spices’. According to the American Spice Trade Association, “today spices have become known as any dried plant product used primarily for seasoning purposes. This all-inclusive definition seems to cover a wide range of plants like herbs, spice seeds and even dehydrated vegetables and spice blends.”
Putting spices in a Pakistani perspective, they also comprise the authentic recipe mixes used in traditional cuisine. The Pakistani spice industry can be divided into branded and unbranded industry.
History
Mehran Spice & Food Industries started its journey in 1975 and within a few years of its inception, the company grew to become one of the leading spice & food industries globally. As time passed, the product range at Mehran increased from spices by adding ready mix recipes, rice, pickles, chutneys and sweet items.Mehran is a world leader in quality rice, equipped with the most advanced rice plant from Germany.
Mehran Spice & Food Industries is an ISO 9001 & HACCP certified leader in the quality food business. Our mission is to be a consumer oriented company with a keen insight of food products ensuring quality, consistency and an authentic taste, backed up with state of the art technology to obtain optimum results. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Mehran Spices & Food Industries.Mehran Spice and Food Industries have been honored with "The Best Export Performance Award" from FPCCI every year since 1984, besides other national and international awards. Mehran has also been awarded the "The Best Export Brand of the Year Award" from FPCCI for the year 2009-2010 & 2012-2013. Over the years, Mehran's production facilities have been set up locally and globally. Chronologically:
• 1975,Mehran Spice & Food IndustriesS.I.T.E Karachi-Pakistan
• 1988,Pure Food Ltd.Jebel Ali Free Zone-Dubai
• 2002,Thar Roller Flour Mill Naukot,Tharparkar District, Sindh-Pakistan
• 2003,Mehran Spice & Food IndustriesKorangi Industrial Area-Karachi-Pakistan
• 2007,Gul Mohammed Spice FactoryJeddah-Kingdom of Saudi ArabiaKeeping in view the global success of Mehran, the company aims to establish itself in Pakistan as well. The spice market in Pakistan is ever expanding and penetration into such a huge market is an arduous task. Nevertheless, Mehran was up to the challenge and established effective distribution networks successfully all over Pakistan. Today by the Almighty's grace & support from our valuable customers, Mehran enjoys a leading position in the market place.
"The world knows Mehran, now it's your turn."
Vision
To become the best food products company locally & globally, that has and will continue to provide quality food products to its valuable consume.
Mission
To promote & maintain Mehran Spice & Food Industries as a quality food products company, that is welcomed into the hearts & minds of kitchens everywhere, locally and globally.
Product profile
Pricing Policy
It is seen that on a general note, Mehran Foods’ offerings are based on parity pricing and are similar to
those of its rival National Foods. According to sources, this similar pricing is not due to any price war that
exists between both companies but is because the raw materials of both are similar in nature for many
offerings. If the cost of raw materials increases, both have to increase their prices and again their prices
show similar trend after increase.
Promotion
The estimated marketing budget for Mehran is Rs.100 million for all their ATL and BTL activities in the
year 2009. The company does most of its marketing on seasonal basis especially before and during
Ramadan and near Eid. The breakdown for the budgeting is 80% for ATL activities and 20% for BTL
activities. In the recent times Mehran has put more emphasis on its export and only comes up with new
marketing campaign for new products.
Distribution
At Mehran Foods, special care is placed upon meeting market and customer demands in a fitting and
timely manner. It is therefore, ensured by the Supply Chain team that goods or shipments reach their
destinations well in time to match market trends and customer demands.
SEGMENTS
All segments are very well addressed by Mehran foods.
The diagram tells other than the export segment all other segments are handled through the channel of wholesalers and retailers.
Mehran foods is dependent on distributor for all the segments except exports which suggest the importance of distributors for the company .
Market Segment Mehran Products
Recipe Mix Biryani Masala, karhai Gosht Masala etc
Straight Spices Lal Mirchi, Haldi Powder, etc
Rice Banspati seela,kernal
Desserts Badam,firni,sheer khurma, etc
Pickles & Chutnies Carrot,mango,green chilli and e.t.c
Institution All The Products of Mehran
Export All the Products of Mehran
MAJOR INDUSTRY PLAYERS
Major players of packed spices in the industry are:
Mehran Foods
National foods
Other players in the industry are:
Chef’s Pride
shan Foods
Ahmed Foods
Habib Foods
Zaiqa Foods
Kitchen Secrets
Where
• All across Pakistan / abroad (for export)What Needs
• Nutritional and pleasure requirements.• Tastes of food
Whose Needs
• All segments of consumers.Added Value
• Recipe of different dishes• Widely available almost everywhere.• Adapting and implementing latest technologies to offer a variety of food products while
maintaining quality and safety standards at all times.
DRIVING FORCES
The spice industry of Pakistan is a very difficult industry to compete in. The two main reasons of
this difficulty are low price competition and involvement of many unbranded suppliers. Brands,
whether branded by a food company, retailer’s brand or unbranded and open commodity
merchants including indirect competitors in the business of providing ready to cook, ready to eat,
canned/ processed food directly and indirectly compete against one another. Because the price
sensitive buyers prefer to buy unbranded spices as they provide a local touch, it becomes difficult
for major players of the industry who deal in branded spices, to attract more buyers. A major
factor that creates competition in this industry is brand loyalty because certain taste attitudes can
only be satisfied with certain brands. Apart from this, some of the major driving forces in the
Pakistani spice industry are changes in societal concerns, lifestyles and attitudes, product
innovation and changes in who buys the product and how they use it.
KEY SUCCESS FACTORS
An organization’s key success factors (KSFs) can be related to any of the following six
categories: technology, manufacturing, distribution, marketing, skills and organizational
capability. Apart from these, there can also be other KSFs for a company. All the aforementioned
factors apply to the spice industry and their individual importance can not be denied in making
industry players successful over the long term.
GROWTH FUTURE 4 YEARS
The table below shows how Spice market would perform in next 4 years in each of the segment and also helps us in pointing the most attractive sector. This is very important exercising and helps people in identifying the segments they should look for and really aim on.
Market Segment 2010 2011 2012 2013
Recipe Mix 42% 44% 50% 56%
rice 48% 51% 53% 55%
Pickles & Chutnies 8% 9% 11% 13%
Institution 39% 44% 49% 53%
Export 38% 44% 49% 57%
Product Strategy:mehran in an entrepreneurial venture and it is following market development strategies,
product development strategies and penetration strategies as it is expanding its product line to new customer base in various locations, setting up product lines such as spices, pickles, etc and sustaining its global position mainly through exports. Mehran has great range of vegetable mixes for country like India as the target market highly prefers vegetable. Similarly in Pakistan Mehran has wide range of meat mixes as people are meat lovers and highly prefer meat diet. Mehran is currently present in over 60 countries and is performing to maximum of its potential to become the global leader. Therefore, based on conceptual understanding form the Strategic Marketing Management course, it can be called a ‘transnational’.
Mehran Foods has the competitive edge of technology and innovation. Company develops new methods and techniques to test its new products and generate trials in the market to measure the market response before they formally launch any product. So we can say that research is an integral part of the company and the new product is brought in keeping in view the customer preferences and needs.
The spices mixes at Mehran’s production plant are created with the exquisite and genuine flavors having the cultural and traditional touch. Mehran believes in the best as it never compromises on standards of finest quality and engraves the old age recipes into modern packaging keeping the freshness intact.
The raw material is an initial and important part of whole product strategy. Mehran strongly holds the belief that excellent quality is majorly dependent on the first-class quality raw material processed with the help of state of the art technology. For this very reason the purchase department at Mehran Foods thoroughly selects the best quality spices from fields, local bazaars and international markets. Raw material is also procured from number of countries such as black pepper is imported from India, Africa, Thailand and various other countries. Mehran Foods pays special attention in obtaining raw material as different spices are imported from the places where those spices are grown best.
SUCCESS STORY OF MEHRAN FOODS IN TERMS OF FIGURES
During a time when it was very difficult to get a talented and educated pool to work for a national
company, Mehran Foods prided itself in hiring the most talented people from the country. As the
competitive environment becomes more competitive with each passing day, hiring and retention of
positive people is critical, who contribute to the overall growth of the company, country and the
community at large. Mehran Foods continuously emphasizes the need of able human resource
development through various Performance Management Systems, Internship Induction Schemes and
Employee of the Quarter Achievement Award. In addition to these, there is a Training and Development
plan run on a regular basis at Mehran, benefiting the workforce. (Mehran Foods, 2008)
“Mehran’s modern factory covering an estimated area of 100,000 sq. feet is also equipped with latest
in house lab facilities, which scrupulously tests and analyses each product right from ingredient stage
to finished form. At Mehran, immaculate quality is a passion and buyers’ satisfaction is the abiding
commitment.”1 An estimated investment of Rs.100 crores has been done in this facility.
Today, this organization has almost 1000 employees who work diligently day in day out to make sure
that the company’s vision and mission are achieved and it is more successful than ever before. Over
the years, success of Mehran can be explained by the awards and certifications it is been the recipient
of like Export Performance Award 2003-2004 from KCCI, FPCCI Export Spices Mixes Trophy Winner etc.
Currently, Mehran claims to earn annual sales worth Rs.2 billion with an annual growth rate of more
than 50%. Internationally, a test market has been established in Dubai, after looking at its ethnic
population of 1.4 million. Also, Mehran is the first Pakistani company to formally enter the Indian
market and introduce its range in a more competitive market than Pakistan’s.
M.M Rice Mills (Pvt) Ltd.Starting as a small rice exporter in 2002, today we are regarded as Pakistan's leading exporter of Pakistani Long Grain White Rice. With the Grace of God, and our hard work, dedication and commitment we have earned the trust of our clients in providing excelling quality services. Our clients are very dear to us, and therefore we go the extra mile, to achieve complete client satisfaction. Our efficient, responsive and professional team work round the clock to ensure that the quality of the orders are up to the mark, and are delivered on time; whether in bulk or in containers. We strictly enforce stringent qualitative and quantitative measures to ensure our commitment to our client is fulfilled.
1
Today, M.M. Commodities and M.M. Rice Mill (PVT) LTD. collectively operate 3 Rice Mills, and Warehouses along with Weigh Bridges (Specifications listed below), where rice is milled, packaged in polypropylene bags and delivered according our client's requirements.
Location Milling Capacity
Storage Capacity(Metric Tons)
Covered Area(SQFT)
Weigh Bridge
Rice Mill 1
Main Port Qasim Road, Western Zone
10 M.T./HR 13,000 50,000 No
Rice Mill 2
Main Port Qasim Road,Western Zone (Adjacent to Main Port Qasim Gate)
15 M.T./HR 40,000 145,000 Yes
Rice Mill 3
Port Qasim, Eastern Zone 20 M.T./HR 30,000 120,000 Yes
*M.T. /HR – Metric Tons per hour
Our Export Performance
Fiscal Year Quantity Exported in Metric Tons
2009 125,025
2010 276,176
2011 157,733
Our Associations and Affiliations
1. Rice Export Association of Pakistan (REAP)2. Wheat Traders Association of Pakistan (WTAP)3. Grain & Feed Trade Association (GAFTA) London4. Federation of Pakistan Chambers of Commerce Industry (FPCCI)
Our Notable buyers
1. Louis Dreyfus of Geneva2. ADM – Rice INC of USA3. Ameropa4. Phonex Commodities of Thailand5. Olam International of Singapore6. Soeximex
Our Export Varieties
1. PAKISTAN WHITE RICE IRRI-6, 5% SILKY POLISED2. PAKISTAN WHITE RICE IRRI-6, 5% BROKEN DOUBLE POLISHED3. PAKISTAN WHITE RICE IRRI-6, 15% BROKEN REGULAR4. PAKISTAN WHITE RICE IRRI-6, 25% BROKEN REGULAR5. PAKISTAN WHITE RICE IRRI-6, 100% BROKEN SORTEXED6. PAKISTAN WHITE RICE IRRI-6, 100% BROKEN NON SORTEXED
7. PAKISTAN PARBOILED RICE IRRI-6, 5% BROKEN SILKY POLISHED8. PAKISTAN PARBOILED RICE IRRI-6, 100% BROKEN SORTEXED9. PAKISTAN PARBOILED RICE IRRI-6, 15% BROKEN SORTEXED10. PAKISTAN PARBOILED RICE 5% BROKEN SUPER FINE
Our Achievements
RICE EXPORTERS ASSOCIATION OF PAKISTAN (REAP) TROPHY, AWARDED TO M.M. COMMODITIES FOR HIGHEST EXPORT OF NON-BASMATI RICE 2010-2011 BY THE HON. GOVERNOR PUNJAB, SARDAR MUHAMMAD LATIF KHAN KHOSA
RICE EXPORTERS ASSOCIATION OF PAKISTAN (REAP) TROPHY, AWARDED TO M.M. COMMODITIES FOR HIGHEST EXPORT OF NON-BASMATI RICE 2008-2009 BY THE HON. FEDERAL COMMERECE MINISTER MAKHDOOM MUHAMMAD AMIN FAHIM
THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR EXPORTING LONG GRAIN RICE WORTH RS. 5,112,904,000 (5.1 BILLION) ON THE OCCASION OF 31ST FPCCI EXPORT AWARDS 2006-2007
BEST LADY EXPORTER TROPHY 2006-2007, AWARDED BY THE FPCCI TO M.M. COMMODITIES – EXPORTER OF LONG GRAIN WHITE RICE
THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR EXPORTING LONG GRAIN RICE WORTH RS.4,406,440,000 ON THE OCCASION OF 30TH FPCCI EXPORT AWARDS 2005-2006
THE CEYLON NATIONAL CHAMBER OF INDUSTRIES ACHIEVER OF INDUSTRIAL EXCELLENCE AWARDS 2006, PRESENTED THE GOLD AWARD TO M.M. COMMODITIES PAKISTAN IN THE SAARC COUNTRY NOMINATED CATEGORY
BEST LADY EXPORTER TROPHY 2005-2006, AWARDED BY THE FPCCI TO M.M. COMMODITIES – EXPORTER OF RICE
THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR BEST LADY EXPORTER IN RICE FOR THE YEAR 2004-2005
SHAN FOODS
ORGANIZATIONAL HISTORY
Shan Foods came into existence in 1981 when it began operations from a single room. Shan Masala as it was back then, launched full range of spices to cater to local public, due to its
popularity. Shan started exporting after a few years due to increased international popularity. But after sometime, the need to reposition the brand was felt. It needed to be repositioned as a food brand rather than a spice brand. Re-imaging the organization became necessary for re-positioning of the brand; it was a job well done and led to continued success of Shan on national and international fronts. Now, Shan Foods is well known as a brand of easy to cook mixes for Pakistani food. The name of Shan Foods has become synonymous with highest quality and exquisite taste. It continues to carry on, the tradition of authentic cuisine to farthest parts of the world. There are six broad categories of varieties Shan deals in including recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts.
Today, Shan Foods has presence in 60 countries. The brand is exported to UK, USA, and Middle East and now to Far East regions as well.
COMPANY MISSION AND VISION
Shan Foods’ mission explains its success, “To continuously develop and produce quality products that meet the customers and markets demands, compatible with applicable regulatory requirements. To be a consumer oriented company with keen insigne of food products ensuring quality panty consistency and authentic taste to operate with state of the art technology to obtain optimum results and retain highest quality standard thrived efficient and motivation human resource and inculcate in them a sense of participation and proved for personal goals and development.” (Shan Foods, 2008)
Shan Food’s vision is “to be a dominant global player in food products and socially responsible company that attains its quality standards so that Shan stands for tradition, trust and good taste.”or international. Along with these core values, it intends preserving and upholding other values like purity, authenticity and consistency; which it credits for the phenomenal growth it has seen over the past decade. The company intends to grow on the back of cutting edge technology, with the proven best practice of CPI (Continuous Process Improvement), and it realizes that a major portion of its past success and the future drive towards its development and the achievement of its goals will be hinged on the motivation level, the training, and ultimately the efficiency of its human resource.
EXTERNAL ANALYSIS
Market Structure Spice Industry of Pakistan The diagram below tells the Market structure of the Spices in Pakistan, spice industry includes:
Plain Spices
Red Chilli Powder
Khushbudaar Lehsan
Zaiqedaar Adrak
Khatta Khatai
Recipe Mixes
Biryani Mixes
Stir Fried Foods
Curry Spice Mixes
Deep Fried Foods
Barbeque
Salts
Nationl salt
Shan Salt
Loose Salt
Exports
National Foods Products
Shan Foods Products
Institution
National
Shan
Loose
Key Analysis
1. All segments are very well addressed by Shan foods.
Plain Spices
Red Chilli Powder
Khushbudaar Lehsan
Zaiqedaar Adrak
Khatta Khatai
Recipe Mixes
Biryani Mixes
Stir Fried Foods
Curry Spice Mixes
Deep Fried Foods
Barbeque
Exports
National Foods Products
Shan Foods Products
Retailer
Wholesaler
Distributor
Manufacturer
2. The diagram tells other than the export segment all other segments are handled through the channel of wholesalers and retailers.
3. Shan foods is dependent on distributor for all the segments except exports which suggest the importance of distributors for the company .
Market Segment Shan Products
Recipe Mix Biryani Masala, karhai Gosht Masala etc
Plain Mix Lal Mirchi, Haldi Powder, etc
Salt Shan NamakInstitution All The Products of Shan
Export All the Products of Shan
Market
Share in Volume (Rs.in billion)
All the segments of the spice industry have shown good growth in past 4 years.
The Recipe mix segment has shown good growth because of changing life styles of people as they prefer easiness in cooking.
Salt segment is also having a good growth despite having less proportion as compared to other segments
The export market showed a phenomenal growth in throughout last four years.
Market Segment 2006 2007 2008 2009
Recipe Mix 19% 29% 36% 42%
Plain Mix 22% 28% 33% 46%
Salt 3% 4% 5% 7%
Institution 19% 24% 28% 38%
Export 9% 10% 15% 25%
Market Segment 2007 2008 2009 2010
Branded 3 4.25 6 8
Unbranded 8 10 12 15
As the food industry is having a tremendous growth there is possibility that new players will
come and existing players will also intensify their efforts to meet the demands,
The spice consumption is dependent on food consumption and wet know that people consume
about 50% of their income on food so his sector will have a good opportunity.
Exports segment specially have a great potential and its size can be increased by having more
efforts to export spices and meet the international demand
MARKET SEGMENT
Segment Life Cycle
Market / Product Segment Intro Growth Maturity Decline
Recipe Mix
Plain Mix
Salt
Institution
Export
Market Segment 2010 2011 2012 2013
Recipe Mix 42% 44% 50% 56%
Plain Mix 48% 51% 53% 55%
Salt 8% 9% 11% 13%
Institution 39% 44% 49% 53%
Export 28% 33% 40% 50%
Shan Foods can easily pin point which segments to attack. The spice sector is expected to have tremendous growth for future years. Two key segments are falling in growth stage which means even now lot of investment can be made to take the upcoming market of these segments.
The Salt and Institutions are yet on its introductory stage, though Shan foods have started catering to these markets but still lot more efforts are required as figure shows this segment is expected to have lot of growth.
Even after so many years the segment like recipe mix spices is at its growth stage because THERE IS NO
as such strong substitute for this segment
SHAN’S PORTFOLIO LIFE CYCLE
Shan’s Portfolio life Cycle
Market / Product Segment Intro Growth Maturity Decline
Recipe Mix
Plain Mix
Salt
Institution
Export
Shan foods is in growth stage in three segments i.e Recipe Mix, Institution and Exports which suggest the growth possibilities for shan and giving an edge to Shan by earning more share than its competitors.
The industry is in introductory stage in Export segment while as we know shan has international presence and it is in growth phase so shan can further expand its presence and can make good return by focusing on exports.
Companies & Competitors Market Share of Branded Spices
Company Market Share
2006 2007 2008 2009 % Growth
Shan 1.2 1.68 2.352 3.3 40%
National 1.2 1.5 2.5 3.2 40%
Chef’s 0.45 0.63 0.882 1.2348 15%
other 0.15 0.21 0.294 0.4116 5%
The table describes the market share possessed by Shan Foods and its competitors. Shan Foods and National Foods are almost occupying the similar share in Volumes as well as in % but the growth of Shan Foods is Showing the steady increase while the National foods is Showing fluctuations in its market growth.
Shan Outlet Coverage and Market Reach
Shan Outlet Coverage
Outlets A B C D Total
Total Outlets 407 3020 30205 147344 180976
Shan Outlets 360 2765 23995 22880 50000
Outlet Coverage 89% 92% 80% 16% 28%
Outlets Contribution 0.22% 1.67% 16.70% 81.40%
Shan outlets coverage in A, B and C class outlets is excellent, where they really need to work hard are the D class outlet where there outlet coverage is less than 20%. These are basically the rural areas where people do not really know about branded items they just rely on loose spices.
Shan Market Reach
Outlet Coverage Market Reach
Shan Benchmark Shan Benchmark
28% 47% 42% 56%
2004 Market ReachRetail Volume Sales
Shan Foods 3.3 billion
Industry 8 billion
Product/ Marketing Plan
Market segmentation and Product positioning objectives
Market Segment Size Growth Products
Existing
Profitability Objectives New Product
plan
Recipe Mix
Rs.25 billion
industry 40%
Biryani
masala,
BBQ,
Qorma
Masala etc
10-15%
1.Include
more varieties
in portfolio
2.Capture
Market share
from branded
and un
branded
industry
Fish recipe
Italian recipe
Chinese recipe
Continental Recipe
Plain Mix
Tez lal Mirch,
Kaali Mirch,
etc Increase usage
small towns
and suburbs
All varieties in
Sachet packing
Salt
Shan Namak Increase
awareness
among people
Institution
ALL Products Intensify
personal
selling efforts
Export All Products New markets
Product / Marketing Plan
Pricing
Product Competitor Bench Mark Price Positioning
Recipe Mix
Ranges from Rs.30 to 40
Pricing charged by competitors
depends upon SKUs and it uses
Parity Pricing
Pricing charged by Shan depends
upon SKUs and it uses Parity
Pricing
Plain
Depends on SKUs
Like 50 grams red chili powder is
available at a price of Rs.20
and150 grams at Rs.115
Salt
Iodized salt is priced at Rs.17
(800 grams) and plain salt at
Rs.15 (800 grams)
Distribution
Channel Market This Company
This Year
2010 This Year
2010
Distributor / Retail
60% 60%65% 60%
Distributor/ Wholesaler
20% 15%15% 10%
Institutional Sales
12% 15%5% 10%
Export 8% 10% 15% 20%
Action Plan
What How Who When
Distributor / Retail
By effectively
managing
distribution
network and giving
trade incentives
Marketing and
Sales Department
By start of 2010
Distributor/ Wholesaler
Cutting some
proportion of
wholesaler and
diverting that
proportion to
other channels
Marketing and
sales DepartmentBy 2010
Institutional Sales
By making more
efforts in building
good clients to
generate more
Marketing and
sales Department
2010
institutional sales
Export
Taping new
markets &
increasing sales in
existing countries
Marketing and
sales Department
2010
IMC Plan
Shan Foods would follow an integrated marketing communication plan, which would include the different set of activities. Each activity would revolve around the products positioning statement.
The estimated marketing budget for Shan is Rs.100 million for all their ATL and BTL activities in the year
2009. The company does most of its marketing on seasonal basis especially before and during Ramadan
and near Eid. The breakdown for the budgeting is 80% for ATL activities and 20% for BTL activities. In the
recent times Shan has put more emphasis on its export and only comes up with new marketing
campaign for new products.
Shan does not advertise as a ritual and can be termed as quite conservative when it comes to using mass
media fro promoting itself. It does not believe in advertising rigorously. The advertising is done
seasonally only; however it does conduct certain promotional campaigns and activities. Almost all of
Shan’s promotions are addressed towards women. The advertisements of Shan’s offerings focus entirely
in the females of the family. The marketing strategy is very customer oriented i.e. Shan emphasizes on
marketing its products keeping in mind its customers thus having a customer centric view. Such a
marketing strategy allows it to leverage on the goodwill already in the market.
It has started to reach out to a wider audience keeping in mind the changing lifestyle to nuclear families
and convenience seekers. Shan has recently realized that a potential part of the population i.e. the
teenagers are the ones that will become tomorrow’s decision makers. Thus, it aims at informing,
reminding and persuading teenagers through innovative campaigns with proper information regarding
the superior quality of Shan products. This way, Shan will be their most preferred choice when they
become the decision makers in the kitchen.
