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Minute Maid
Submitted to:
Sir Bilal Ilyas
Group members:
Hashir Khan 11589
Sehar Aslam 11581
Khadija Iqbal 11577
Sarfraz Khan 11575
Umer Asif 11529
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Minute Maid
Table of ContentsEXECUTIVE SUMMARY....................................................................................................................4
History Of Minute Maid.................................................................................................................6
Minute Maid in Pakistan.............................................................................................................6
COMPANY’S MISSION.......................................................................................................6
COMPANY’S VISION..........................................................................................................7
Our Values................................................................................................................................8
COMPANY’S VALUES........................................................................................................8
At Minute Maid we are committed to providing organic and hygienically processed food products to our customers.Papaya Pulp.........................................................................................8
Papaya Pulp....................................................................................................................................9
Description.................................................................................................................................9
Uses........................................................................................................................................9
SITUATIONAL ANALYSIS................................................................................................................10
MICRO ENVIRONMENT.......................................................................................................10
INTERMEDIARIES.................................................................................................................10
CUSTOMER...................................................................................................................................13
MACRO ENVIRONMENT................................................................................................................14
DEMOGRAPHICS...................................................................................................................14
ECONOMIC FACTORS...............................................................................................................14
POLITICAL FACTORS...........................................................................................................14
CULTURAL FACTORS..........................................................................................................15
TECHNOLOGICAL FACTORS..............................................................................................15
MARKET ANALYSIS........................................................................................................................16
MARKET SIZE........................................................................................................................16
MARKET GROWTH TREND............................................................................................................16
COMPETITORS ANALYSIS..............................................................................................................17
Strengths and Weakness analysis of competitors.......................................................................20
CORE COMPETENCIES OF KEY PLAYERS........................................................................................21
EVALUATING THE CUSTOMERS IN TERMS OF CORE NEEDS AND WANTS.....................................22
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Minute Maid
THE BUYING HABITS OF CUSTOMERS...........................................................................................22
Budgeting.....................................................................................................................................24
DIFFERENTIATION AND POSITIONING STRATEGY.........................................................................25
PROMOTION.................................................................................................................................28
PROMOTIONAL BUDGET...............................................................................................................29
SALES PROMOTION.......................................................................................................................29
Direct Marketing...........................................................................................................................30
POSITIONING................................................................................................................................31
TARGET CUSTOMER......................................................................................................................31
REGULAR USERS...........................................................................................................................31
Summary of Healing Properties of Papaya..................................................................................32
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Minute Maid
E
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Minute Maid
ECUTIVE SUMMARY
This report is based on Papaya Pulp Juice . Papaya Pulp is A Fast Moving Consumable
Good (FMCG) by Minute Maid. Minute Maid has a reputable history of making
famous and delicious products, which are admired by its ultimate customers and
consumers with the passage of time. Now Company has recently introduced its New
Product Papaya Pulp Juice. We made this report about this product in which different
marketing aspects are discussed.
The objective of this report is to sketch a plan for Papaya Pulp Juice so that it can achieve
it sales target. We have done a complete Market Analysis of this product keeping in view
the affects of Micro and the Macro Environmental factors that can help in the research
and development of Papaya Pulp Juice.
Buying Behavior of the customers is analyzed and a complete marketing goal is set for
the product.
Finally we have implied the Marketing Mix strategy to see whether makes Papaya Pulp is
a market leader or not.
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Minute Maid
History Of Minute Maid
In 1945, the National Research Corporation (NRC) of Boston, Massachusetts, developed
a method of concentrating orange juice into a powder using a high-vacuum evaporation
process previously developed for dehydrating medical products for use in the U.S. war
effort. The US Army had a need for 500,000 lb (227,000 kg) for the war, so NRC created
a new branch, the Florida Foods Corporation. Led by John M. Fox, the company won the
government contract for $750,000.The war ended and the contract was canceled before
the factory could be built, but with investment, the company moved forward with a
product.
Rather than selling powder to the public market, the company decided to create frozen
orange juice concentrate, using a process that eliminated 80 percent of the water in
orange juice. A Boston marketing firm came up with the name Minute Maid, implying
the juice was quick and easy to prepare
The first shipment took place in April 1946. The same month, the company was renamed
Minute Maid in Pakistan
Minute Maid entered the Pakistani market in 2008. Here they have used the same
advertising concept as they have used in India i.e. "where is the pulp?" as both countries
market are similar to each other
COMPANY’S MISSIONOur mission declares our purpose as a company. It serves as the standard against which
we weigh our actions and decisions. It is the foundation of our Manifesto.
To refresh the world in body, mind and spirit.
To inspire moments of optimism through our brands and our actions.
To create value and make a difference everywhere we engage
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Minute Maid
COMPANY’S VISIONOur vision guides every aspect of our business by describing what we need to accomplish
in order to continue achieving sustainable growth.
•People:
Being a great place to work where people are inspired to be the best they can be.
•Portfolio:
Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
•Partners:
Nurturing a winning network of customers and suppliers, together we create mutual,
enduring value.
•Planet:
Being a responsible citizen that makes a difference by helping build and support
sustainable communities.
•Profit:
Maximizing long-term return to shareowners while being mindful of our overall
responsibilities.
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Minute Maid
Our ValuesOur values serve as a compass for our actions and describe how we behave in the world.
•Leadership:
The courage to shape a better future
•Collaboration:
Leverage collective genius
•Integrity:
Be real
•Accountability:
If it is to be, it's up to me
•Passion:
Committed in heart and min
COMPANY’S VALUES
Enterprise
Empowerment
Accountability
Trust
Teamwork
At Minute Maid we are committed to providing organic and hygienically processed food products to our customers.
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Minute Maid
PAPAYA PULP
Our farm will yield Organic Papaya from June- September. and weight of each fruit
varies from 1.25 Kg. - 1.5 Kg.
DESCRIPTIONDeliciously sweet with musky undertones and a soft, butter-like consistency, it is no
wonder the papaya was reputably called the "fruit of the angels" by Christopher
Columbus. Once considered quite exotic, they can now be found in markets throughout
the year. Although there is a slight seasonal peak in early summer and fall, papaya trees
produce fruit year round.
USESPapaya has many uses, including as food, as cooking aid, in medicine. The stem and the
bark are also used in rope production. The ripe fruit is usually eaten raw, without skin or
seeds. The unripe green fruit of papaya can be eaten cooked, usually in curries, salads and
stews. It has a relatively high amount of pectin, which can be used to make jellies.
Green papaya fruit and the tree's latex are both rich in an enzyme called papain, a
protease which is useful in tenderizing meat and other proteins. Its ability to break down
tough meat fibers was used for thousands of years by indigenous Americans. It is
included as a component in powdered meat tenderizers.
Papaya is marketed in tablet form to remedy digestive problems. Papain is also applied
topically (in countries where it grows) for the treatment of cuts, rashes, stings and burns.
Papain ointment is commonly made from fermented papaya flesh, and is applied as a gel-
like paste. Harrison Ford was treated for a ruptured disc incurred during filming of
Indiana Jones and the Temple of Doom by papain injections.
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Minute Maid
SITUATIONAL ANALYSIS
MICRO ENVIRONMENT
INTERMEDIARIES
Minute Maid follows two ways of collecting raw fruits. They are direct collection and
indirect collection.
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Minute Maid
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Collection Mechanism
Direct Collection Indirect Collection
* IntermediariesProvide Raw Material
* Minute maid Outlets* 8 Regions
* 100 Plus outlets in each region
Minute Maid
Intermediaries supply 30% of fresh fruits out of the total production. The company is
planning to eliminate this source of getting fruits due to three reasons.
1: Quality is not consistent at times.
2: Availability is not ensured to its fullest extent.
3: As fresh fruits are the key ingredients for making of Papaya Pulp, the company is
trying to adopt uniform channel of direct collection.
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Minute Maid
CUSTOMER
Minute maid has targeted the high-income class in urban areas. The company has
targeted the people who are aware of UHT and are quality oriented. People who give
preference to organic, hygiene and purity go for Minute maid . Minute maid has
targeted ladies whose incomes are high and who care about the quality of the product and
that are why the company has targeted the urban areas and not rural because that way the
company wouldn’t have been able to achieve it’s goal.
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Minute Maid
MACRO ENVIRONMENT
DEMOGRAPHICS
Demography is the study of human population in terms of size, density, location, age,
gender, race, occupation and other statistics. Pakistan has population more than 14.50
cores out of which 49% are male and 51% are females. 55% of the population involves in
agriculture. The literacy rate in very low i.e. 39% and population rate is 2.3% annually.
Most of the population lives in rural areas but migration rate is high. The per capital
income is $480 per person annually. That is the main reason why packed juices
contribute to only 3.5 % of total production. The awareness in people is lesser and per
capital income is lower. Hence it is in favor of Minute maid if literacy rate is increased
as well as per capital income so that people feel the importance of fresh pulps juice for
themselves.
ECONOMIC FACTORS
Economic environment includes factors that affect Minute maid’s consumer purchasing
power and spending pattern. The country major economic sectors are underdeveloped.
The common man works hard to meet his basic needs. Thus a large part of the income is
spent on basic needs
POLITICAL FACTORS
Government is facilitating Juice industry. There is no sales tax on the Juice. Hence it is a
real plus point. If the government applies sales tax, then it can adversely affect Minute
maid. As it is already a high priced product, the sales tax will make it more costly. Hence
changing government policies and recoveries in taxes are always a political threat for
Minute maid.
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Minute Maid
CULTURAL FACTORS
As the major percentage of population in Pakistan is not literate, hence the awareness
level is too low. They don’t have idea of cleanliness from biological aspects. There are
many-packed juices such as Nestle, Country and Shezan, which are good in quality too.
TECHNOLOGICAL FACTORS
Currently Minute maid is using UHT technology and further an indirect heating and
cooling effect which is most modern and latest technology not being used by any
company. The real technological challenge for Minute maid is to reduce the cost of
packaging i.e. 25% of its total cost. So any company comes up with a better technical
solution of packaging, then suddenly it can penetrate in the market by lowering the price.
So a continuous RND is required.
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Minute Maid
MARKET ANALYSIS
MARKET SIZE
The total market size is approximately 6 Million Liters annually and in terms of money it
is 360 Million Rupees.
70% share is approximately of 250 ml of the over all market which makes 4.2 Million
Litters.
Shezan Juice 50% 2.1 million
Nestlé’s Share 30% 1.26 million
Others 20% 0.84 million
MARKET GROWTH TREND
Market is increasing at the rate of approximately 26%.
The Major factors which can influence the level of demand of product are Seasons,
Changing Trends, and Diet Consciousness.
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Minute Maid
PEST Analysis
Political analysis
Controlled democracy
Stability in Government
Accountability in all departments
Front role in war against terrorism
Better image in world
Reformation regarding all important fields
All these changes have taken place in last 7 years and it has made Pakistan entirely a
changed country.
Economic analysis
Before year 1999, economy of Pakistan was at worst. Forex was very low and it has to
borrow even to repay loans. Debts were $38 bn. Economics indicators were showing
negative signs. But then change in Government brought many changes. Some positive
points are as under.
Increase in GDP 6% per annum
Increase in per capita income as 8%
Increase in exports up to 12.5 bn dollars
Forex reserve up to 13 bn dollars
Privatization
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Minute Maid
Boom in stock market
IT sector development
Repayment of expensive commercial loans and refuse to borrow more from IMF
More than 1 bn dollars investment per year
Situational analysis
Pakistani market has shown good movement towards all types of positive indicators.
Now interest rates are low, saving schemes are giving less profits, consumers banking is
at peaking, new jobs are being created by Government as well as foreign investment.
Income of people is increasing more trends towards FMCG. All these situations are
calling for new and new opportunities and investors.
Technological analysis
Pakistan is considered as developing country. Although it is nuclear power yet it lacks
behind in other technologies. Now it has made good progress in digital revolution but still
it has to import heavy machinery from developed countries
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Minute Maid
SWOT
Strengths
Increased demand in pure juices
Presence of enough market to be profitable
Media coverage
Accessibility of markets
Small no of nectar and pure juices producers
Awareness in consumers
Majority of family styles in population
Less no of tastes in market
Weaknesses
High cost of production
Low transportation infrastructure
Separated market
Opportunities
New tastes can be introduced
More segments can be targeted
Trends in fresh juices
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Minute Maid
Threats
Trends of juices
Form competition
Foreign companies coming in Pakistan
COMPETITORS ANALYSIS
The key players of the Juice Industry are:
Nestle
Shezan
Tops
Country
Maza
Rani
Fresher
Strengths and Weakness analysis of competitors
Strengths
Brand awareness
Only brands since many decades
Strong brands
Excellent advertising campaigns
Good distribution channels
Good management
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Minute Maid
Weakness
No. 2 quality in market
Hatred against Western brand
Western taste
No participation in social development
Limited range of tastes
Rani Juice
Rani Juice is under Blue Berry its main market is in Arab but we can find its product all
over world , if we talk about Rani Juice in Pakistan we have limited market due to much
reason . Rani can give us tough time because their concept of juice is same as Minute
Maid (pulpy) but there are way behind from Minute Maid for number of reason but we
have still keep in mind that if Rani Juice will come up with new marketing strategies ,
although it will make year’s to come at Minute Maid position , Rani Juice have strong
market in Arab countries, in Arab countries Minute Main need years to conquer their
market
Fresher Juice
”Juice Nahi, Fruit Hai Yeh” it’s the tag line of Fresher juice . Fresher did great in market , they started their product from Rs.35(500ml) now we can see Fresher is at Rs 50 and few flavor of Rs70 , their Juice quality is best but they don’t offer pulpy of fruits in their juice and this is only edge for Minute Maid .
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Minute Maid
CORE COMPETENCIES OF KEY PLAYERS
Customers want juices but now the trends are changing towards pure pulp juices. So the
analysis shows that there are different kinds of customers in terms of juices. Some people
want quality juices without any brand name and some people want only Nestle. People
are also price conscious. But sometimes availability is also a factor. So conclusion says
that there are several competencies of the key players:
Price
Quality
Availability
Brand Name
Strong Promotion
EVALUATING THE CUSTOMERS IN TERMS OF CORE NEEDS AND WANTS
Customers need juices and wants are now converting towards pure pulp juices and Nestle
has played a vital role in creating awareness about health consciousness.
THE BUYING HABITS OF CUSTOMERS
Buying habits of customers were ordinary before the entrance of Nestle in pure juices,
because customers were not into imported brands before Nestlé’s nectar. Nestle is one of
the very famous multinational organization of the world. It deals with food products
ranging from juices to liquids and dry milk. The organization is running with an excellent
system namely “Nestle Quality System”. Creative advertisement of Nestlé’s nectar has
created an awful awareness in the minds of the customers. The result of this awareness is
that customers are now more inclined towards pure juices because of their health
sensitivity. That is why Minute maid wants to introduce pure juice in the 250 ml pack
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Minute Maid
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Nestle
30 % Market Share
Rural Area as target market
High in price
Papaya Pulp
5% Market Share
Rural Area as target market
Less sugar
Shezan Juice
50 % Market Share
Urban & Rural Area as target market
Remaining:
15% Market Share Includes Tops,
Country etc. Varies in quality
Minute Maid
Budgeting
As we know there are different techniques used for budgeting. Minute maid uses top
down technique i.e. top management decide how much budget to allocate for each
product.
Although there is no hard and fast rule for budgeting in Minute maid yet there are
certain criteria for allocation of budget. As a guideline Minute maid allows 2.5 to 4
percent of its gross sales to be spent in marketing activities expenses. For instance look at
the table given below
Account Heads Amount in Pak Rupees
Papaya sales Share (approximately 50% of total
sales)
3.2 billion
Papaya sale’s Marketing Budget (2.5%) 80 million
We find from this table the amount of Rs.80 million as marketing budget for the brand of
Minute maid. This amount is further subdivided into “above the line” & “below the line”
marketing activities.
In ATL activities TV, Outdoor and Print media are included. On the other hand, in BTL
segment there are different activities like sponsoring different concerts, parks etc. and
material for point of purchase.
The problem with this approach is that when sales of a particular brand are declining then
marketing budget for that brand also declines. When a brand needs the money for
advertisement then it does not have it because of its poor outcomes. Management looses
the interest in that brand and it is stuck in a vicious circle.
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Minute Maid
DIFFERENTIATION AND POSITIONING STRATEGY
MARKETING STRATEGIES
Marketing strategy is one of the most important applications of consumer research is to
improve, marketing strategies. Minute maid is using different marketing strategy to
improve its customer values that drive from the products.
DIFFERENTIATION & POSITIONING STRATEGY
They have a change in product market a focus on innovation and change and a flexible
organizational structure headed by younger managers. They are using differentiation
strategy such a strategy emphasize a product that is perceived as unique in the industry
provide distinct advantage or is otherwise set a part from competitors and brand become
their strength.
Minute maid is positioning their product Papaya Pulp in terms of 100% pure and
natural juice, and differentiating Papaya Pulp in terms of Halal, and the other
difference is that there is no sugar and no preservations in the juice.
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Minute Maid
PRICING STRATEGY
Pricing Objective
Every marketing task including pricing should be directed towards a goal, Management
should decide on its pricing objective before determining the price itself. The pricing
objectives are as follows:
* Profit oriented:
- To achieve a target return
- To maximize profit
* Sales oriented
- To increase sale volume
- To maintain or increase market share
* Status quo-oriented
- To stabilize prices
- To meet competition
The main objective of every private organization is to achieve profit. Therefore, the
company is mainly "profit oriented" but currently it is also striving to achieve better
market share as compared to its competitor "Nestle'". Therefore, one can say that
company is both profit and sales oriented.
PRICE DETERMINATION
The major factor involved in determining the price by the company is the channel of
distribution. Main portion of the price received from the consumer is because of the cost
on distribution. Due to this factor the company has different prices in north & south
zones. Moreover, fluctuations in Government policies, increasing tax impositions and
rising fuel prices also cause fluctuation in prices of the product countrywide.
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Minute Maid
DISCOUNT AND ALLOWANCES
The company uses both quantity discounts and trade discounts to attract more
wholesalers and retailers. The one who is ready to stock more of the product inventory is
given more quantity and trade discounts.
Cash discounts are generally directed towards final consumer. For example, reductions in
price like Rs.1.00 off on 1 liter on Rs.0.50 off on 1 liter packs generally to encourage
more sales to attract new consumers. The company also offers schemes like giving a ½
liter of Minute maid with 1 liter of Orange Pulp Juice pack or to shopkeepers like
buying 20 packs of Papaya Pulp and getting one free.
GEOGRAPHIC PRICING STRATEGY
The company relates on geographic pricing strategy because of the high transportation
cost it has to face. The price is 50 paisa higher on each pack of Minute maid Papaya
Pulp in both "NWFP" and "Baluchistan" as compared to "Punjab" because of the high
cost of transportation and distribution.
MARKET SKIMMING PRICING
The company is currently relying on market skimming pricing e.g. Lower price as
compared to its competitors by claiming that Papaya Pulp is a Juice with no color, no
preservatives and no added sugar as compared to others. This strategy also works well to
attract those classes that relate lower prices with higher quality. Thus, in somewhat
manner the company has tried to become distinctive.
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Minute Maid
Comparison with The Competitors Pricing Strategy.
BRANDS SIZE PRICE
Papaya Pulp 1Ltr Rs. 65
500ml Rs. 20
Nestle 1 Ltr Rs. 60
250ml Rs. 15
Shezan 1 Ltr Rs. 28
250ml Rs. 8
4 P’s
Price
In start we have to look over price that it should be profitable on the same time we have to keep very low price because its new flavor
Product
As our product is new we should promote Papaya health benefits
Place
For promotion we will use College’s , Universities and Shopping Malls , it would be best place to promote and over there we will do free sampling
PROMOTION
PROMOTIONAL PROGRAMS
The company develops its promotional program mainly with the objective to influence
the attitude of consumers by creating greater awareness and promoting greater sales. The
company has adopted a very sensible, effective and efficient promotional strategy. It has
used different type of advertisements as titled below:
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Minute Maid
PROMOTIONAL METHODS
The company mainly uses the following two promotional methods:
* TV commercials
* Print ads in popular magazines and newspapers.
* Outdoors advertisement likes billboards, banners, and neon signs.
* Point of sale advertisement in shops, departmental stores and other customers
buying places.
* Sales promotion.
* Buses (New Khan and Daewoo) Printed posters
PROMOTIONAL BUDGET
The promotional budget is formed on the basis of percentage of sales. Normally 2-3% of
sales are reserved for promotional activities.
ADVERTISING
Currently, the company is relying on advertising on nominal basis. The media used is
mainly TV and billboards while the other Medias used vary in cases. As compared to its
competitor Nestle and others its advertising level is presently very high.
For the evaluation of advertising effort currently no specific scientific methods is used.
But the company is considering maintaining such a technique to improve its future
promotional activities. But right now due to shortage of funds it is not feasible.
For advertising purposes the company hires top leading and attractive looking models
that present it in an attractive manner explaining all the qualities hidden in the product "
Minute maid ".
SALES PROMOTION
Sale promotion is mainly directed towards wholesalers / retailers by providing quantity
and trade discounts and to some extent towards the final consumer by providing cash
discount
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Minute Maid
Direct Marketing
For a large company, it is difficult to do one-to-one marketing or direct marketing. They
use communication process for direct marketing.
Process Of Communication
Identifying Target Audience
Minute maid has identifies its target audience. These are the health conscious people.
They target them by research, and as a result, in their advertising they directly show that
their product that is Papaya Juice is good for their health.
Determining the response sought
It includes the buyer readiness process that has further steps. Minute maid has created
an “awareness” about Papaya juice to the general people that its good for their health due
to its quality, packaging, and freshness.
Delivery of message.
Basically, delivery of message is that how you convince the consumer. Minute maid
convinces the general people by showing the various features of its products. Minute
maid always shows its strong points in the advertisements that are mostly shown on T.V,
on hoarding etc.
Selection of media
Minute maid use non-personal media for the promotion of Papaya Juice but sometimes
they also use personal media by personally visiting their customers. Minute maid also
uses celebrities including models for promotion. The strategy of promotion through
celebrities is used in all over the world including Pakistan.
Collection of feedback.
Minute maid also likes to know the feedback of users. People can write to them and also
they can give any suggestion about the brands of Minute maid Foods.
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Minute Maid
POSITIONING
In positioning the product in the market the company considers "purity" and "Price" as
the two main attributes of the product. Currently the company is in the category of high
priced and high purity about equal to its greatest competitor Nestle Juice.
Another major challenge facing the company is to introduce urban consumers to the idea
of packed Juices. Consumers are concerned that sterilized products contained
preservatives or were somehow not genuine because, unlike fresh juices, Minute maid
brand contained no preservatives. In one early promotional campaign, households were
given two samples of Minute maid, one for immediate consumption and the other to be
consumed four days later, the goal was to demonstrate that while the juice remained
packaged it did not require refrigeration. Minute maid was positioned as a pure product,
processed in a scientific, hygienic way, and consistent in quality throughout the year. It
means that even if it is preserved for long period it still remains pure and fresh.
TARGET CUSTOMER
Target customer of Minute maid is present in middle, lower middle and upper class. Size
of the target market is too much to get more market share and the target customer is
residing in urban and rural areas. They can be accessible and available to the company
providing juices through the effective and efficient distribution network and awareness
by promotion. Using all the means available in the country from print media to visual
one.
REGULAR USERS
All age factors fall in the target market of Minute maid that belong to the middle and
upper income class. Both males and females married or single, with no specific
occupation are the occupants of Minute maid.
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Minute Maid
SUMMARY OF HEALING PROPERTIES OF PAPAYA
Increases quality of proteins in whole organism.
Revitalize the human body and maintain energy and vitality.
Encourages the renewal of muscle tissue.
Supports cardiovascular system.
Boosts up the immune system.
Helps with the digestive system, by breaking down the proteins and supporting
production of digestive enzymes.
Papaya can be use also externally as a treatment for skin wounds that don’t heal
quickly, for this you can use papaya peel or ointments made out of papaya.
Prevents the cataract formation.
Due to high vitamin A, it lowers the risk of emphysema in smokers and passive
smokers.
Alleviates inflammation.
Helps with the nausea and constipation.
Can benefit people suffering colon cancer and other forms of cancers and aliments
of cardiovascular and gastrointestinal systems.
Limitations
Due to limited time and knowledge limited research was done.
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