“Praise be to Allah, the Cherisher and Sustainer of the worlds”(Al-

Fatiha-02)

ACKNOWLEDGEMENT We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge.First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the Prof. Sajida Nisar who taught us “Principles of Marketing” with heart and also gave a guideline to this report. It would be an honor for us to thank respected Nasir Zuberi from sales department of Shakarganj Foods.We are immensely obliged to all our fellow students who guided us in making this report, without whose considerate attention and interest, it would be difficult for us to complete this report on time. Whatever we have learnt from them and this project report has put indelible impression on our mind. It is our conviction that this learning experience will always be a source of help in our practical life and professional career.

ABSTRACTPakistan is an agricultural country. According to Ministry of Food, Agriculture and livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry contributes 49% to the agriculture value and 11% to the GDP. Annual production of milk is 35.25 Billion liters in the country; But the Processed milk is only 4% of the total production. We are analyzing the marketing plan of Shakarganj which is a food and dairy products company. Our analysis of Shakarganj will include the current market situation and strategic analysis of the company. We will see the various strategies that can be used by them for improving their product. Shakarganj has been new to the dairy products market and is striving to compete with excellence in product safety, quality and value. Their aim is to provide customer with pure and hygienic dairy products on suitable prices make it as convenient as possible. According to their claim they provide the best quality dairy products throughout country. We will be mainly focusing on the Marketing Mix of Shakarganj Foods. Further we will explain the SWOT analysis and all other strategies used by them.

Madiha Amir       (01)Haider Ali             (02)Tariq Ashraf         (03)Kashif Ali              (06)Ammar Yasir        (08)

Atika Muryam                                    (09)Iffat Zahra                                           (10)Hammad Rasheed                             (11)Fahad Bin Abdul Ghafoor Watto    (28)Raheela Naz                                        (83)

A Report By

Submitted ToMadam Sajida Nisar

Company Profile

HEAD OFFICE10th Floor, 10-B, Block E-IIMain Boulevard, Gulberg IIILahore-54600, PakistanTelephone: 92-42-5783801-2,Fax: 92-42-5870357Email : infosfpl@shakarganj.com.pkWebsite: www.shakarganj.com.pk

JUICE DIVISIONFactory 15 km, Sargodha RoadNear Ahmad Nagar, Chiniot – PakistanTelephone: 92-47-6009135

DAIRY DIVISIONPlant 4 km Lahore RoadJaranwala – PakistanTelephone: 92-41-4007616Telefax: 92-41-4310869

Marketing Objectives of Shakarganj Good Milk

The marketing objectives of Shakarganj Good Milk are as follows: To gain 8% of Market Share in 2009 To create higher recall of our brand among consumers To diversify into other categories of Packed Milk, in the beginning of

2008 they had 2 categories and now they have 4 To Increase in the availability percentage of our brand In the

beginning of year 2008 we had 100 distributors and now we have 140 distributors

To increase the shop coverage over period of year 2009 by 20% To increase our milk processing capacity with the time

Marketing Strategy

According to the marketing goals of Shakarganj Good Milk,, actually they are in the growth stage and they are using the following strategies to gain market share:

They are improving the distribution strategy .They are increasing the shop coverage They are improving the distribution channels They are improving the product quality and its features They are adding flavors to their main product (Good Milk) They are introducing new products They are entering new market segments They are spending nearly same amount on promotions schemes

Market Segmentation

To occupy a clear distinctive & desirable place related to competing mineral water in the minds of the target customers Shakarganj segments its market on 3 bases:

Geographic segmentationPsychographic segmentationBehavioral Segmentation

Demographic segmentation

• Good Milk’s products are not bounded to any particular age, gender or lifecycle stage.

• The brand is meant for all the users in higher upper or middle class families.

• Even though the brand calls for a small percentage of an individual’s income but lower class wouldn’t want to buy the brand maybe because they are price sensitive.

Demographic segmentation

• However all the companies in the milk sector are trying to change the image of processed milk as non-nutritionist milk.

• Therefore it can be said that Good Milk’s has been positioned as a brand for high income earners.

• Due to the income factor involved it can be said that Good Milk’s milk target a specific social class who are health conscious and concerned about their weight.

Psychographic Segmentation

• On the basis of psychographics, factors such as personality traits, lifestyles and values, the marketers at Good Milk’s have segmented the market more towards achievers who are goal-oriented and focused on their careers

• The ads for Good Milk’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more

Psychographic Segmentation

• Good Milk’s ads also target believers, traditional conservative people with concrete beliefs.

• The Good Milk’s products have targeted experiencers because the company has given them a new set of brand and so many will make their first purchase because they want to try something new.

Behavioral Segmentation

Good Milk’s products have been segmented on the basis of benefits that consumers seek in the milk.

In this case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well for any other use.

The ads also show that consumers should increase their milk consumption for example with every tea they should use Good Milk’s, every morning they should drink Good Milk’s and everyday they should feed their pets with Good Milk’s milk.

Targeting

• According to the Brand manager of Shakarganj Good Milk their product (Good Milk) is for everyone and for every purpose.

“ We are targeting everyone who use our product either child, teenagers, young adult, elder, male or female, for every use like for tea, coffee, for cereals, as a plain milk, for shakes or for other milk

products”

Positioning

The positioning strategy of Shakarganj Good Milk according to their marketing plan are:

Convenient: The product is easy to use. They pack of Good Milk have a lid for the handiness to the customers. Available Everywhere: they are using the best distribution

strategy and the good milk is available everywhere.

Positioning

• Premium Positioning: The other strength is their premium positioning of Good Milk.

According to them they are positioning Good Milk in the best way and it is their strength. They are engaging in the kind of advertisement which make them to position themselves in a unique manner.

Core Competencies

Core competency is something that a firm can do well and that meets the following three conditions: It provides consumer benefits It is not easy for competitors to imitate It can be leveraged widely to many products and markets.

A core competency can take various forms including:

Technical/Subject matter know how, A reliable process Close relationships with customers and suppliers. Product development or culture, such as employee dedication.

Core Competencies

According to Brand Manager of Good Milk Mr. Sajid Sufi the core competencies of Shakarganj Good Milk are: Milk Collection System: the milk collection system of Good Milk is according to

them is the one core competency of SFPL. Good Packaging: the packaging is another core competency of SFPL as it is very

safe and reliable

Key Success Factors:According to the company the key success factors are

Slow & Steady Progress Solid relations with their suppliers, distributors, partners and consumers

Core Competencies

According to Brand Manager of Good Milk Mr. Sajid Sufi the core competencies of Shakarganj Good Milk are: Milk Collection System: the milk collection system of Good Milk is according to

them is the one core competency of SFPL. Good Packaging: the packaging is another core competency of SFPL as it is very

safe and reliable

Key Success Factors:According to the company the key success factors are

Slow & Steady Progress Solid relations with their suppliers, distributors, partners and consumers

SHAKARGANJ recognizes the importance of building profitable

and staunch relationship with its customers by offering such products that not only satisfy the customers but delight them.If we concentrate on the definition of the product, and try to focus on its practical implementation on the organization concerned,It exhibits an evident fact that it is involved in producing delicious entertainment incorporating chilled smooth cream with various flavors in several versions Side-by-side entertaining the consumers with frozen lollies thereby extinguishing their thirst under the warm blaze of the sun

PRODUCT

PROVISION OF EXPERIENCE

The SHAKARGANJ is serving the customers with a unique experience thereby convincing them to visit the same soothing atmosphere, comprising the calm climate, sedative surroundings

cooperative staff, time and again and to build profitable, long-term, loyal and friendly relationships with their customers.

Similarly, even in the absence of the direct link with the management of the company, the superb assortment of ice creams leave a long lasting effect on the minds of the customers

PRODUCT CLASSIFICATION

The marketing offer of SHAKARGANJ can be better categorized as a consumer product as the dairy food-item that is bought by the final consumers for their personal consumption.

If we go into further categorization of this product then it would be called as a convenient product as the customer usually buys it frequently, immediately and with less comparison as compared to the specialty products and shopping or unsought goods.

PRODUCT ATTRIBUTES

• Marketers in all sorts of organizations need to concentrate profoundly on the attributes comprising product quality, components/ingredients, colors, sizes, branding, and packaging. All these product attributes are given an equal importance by the organization

• Let us now discuss that how SHAKARGANJ has managed to maintain the attributes of a huge assortment of their dairy product line in order to achieve a better distinction in the market through the uniqueness of its products.

• Product quality is one of the major positioning tools and it has a direct impact on the product performance; thus it is closely

linked to customer value and satisfaction.• Quality is actually the attribute that the company thinks to be the

most important element that makes any company distinctive from others. And their quality checks are their core competency that they are using as a weapon against their competitors. SHAKARGANJ relies on Total Quality Management (Return on Quality).

• Their production department is constantly engaged in improving the quality of the product at each and every stage in the manufacturing process, i.e., the constant quality checks are maintained at each and every step in the production process.

PRODUCT QUALITY

The term brand, with which as each one us would be familiar that, it is a name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Shakarganj has its unique brand name and a unique brand symbol of “COW” that makes it distinguishable from other brands within the same industry.

BRANDING

• Packaging involves designing and producing the container or wrapper for the product. And the designing comprises of the complete introduction of the company and the product by making it more attractive for the consumer.

• The company is quite conscious regarding the external outlook of the product and believes it to be one of the most important sources of attraction for the customers

    PACKAGING

Good Milk • Shakarganj Food Products has developed an

elaborate system of collecting milk directly from the farmers on a daily basis, ensuring freshness of the product. The fresh milk thus collected is processed using state of the art UHT (ultra high temperature) technology and aseptically packed in Tetra Pak filling machines. This process ensures zero microbial activation, while preserving maximum flavour, taste, and nutritional value without the use of any preservatives.

PRODUCTS OF SHAKARGANJ

Good Milk Slim

• SLIM is Low-Fat High-Calcium milk. It contains less than 1% fat and has a higher portion of calcium compared to regular milk. Two to three glasses of SLIM help meet an adult's daily Calcium intake requirement.

• SLIM has been introduced keeping in mind the need for a nutritional product for adults. SLIM has high nutritional Value and is good in taste and after taste.

Flavoured Milk OOLALA

Flavoured Milk OOLALA Kids - we all love them. We love them more as we see them grow. And who doesn't know that milk with all its natural goodness and essential nutrients plays a pivotal role in the child's physical and mental development. Without milk, a child's daily diet plan is incomplete. The tough part, however, is to make the kids drink milk, particularly the school going ones. Somehow they are always shying away. But now Shakarganj

Good Milk Cream

Milk that is collected from the farmers is rich in fat (over 5%). However the processed and aseptically packed “good milk” is toned at 3.5% fat (internationally accepted standard of full cream milk). The extra cream from the milk is processed using state of the art UHT (ultra high temperature) technology and aseptically packed in Tetra Brik packages. The packed cream has a fat content of 40%. The rich cream, with a smooth texture, is ready for use in tea, coffee, and desserts. It is also used as an ingredient in many traditional recipes of cooking. It is available in packing of 200ml.

Shakarganj Food Products specialises in offering high quality “Pure Desi Ghee” (butter oil from buffalo milk) made from fresh cream. With food connoisseur in almost every other house and culinary heritage considered an important part of our culture, desi ghee with its typical rich aroma

Pure Desi Ghee

Kinnow Crateoncent

At Shakarganj, Kinnow concentrate is made from Kinnow Mandarin –a fruit known for its bright orange colour, high nutritional value and sweet tangy taste. Kinnow concentrate's production begins at the plant in the last days of December and ends by mid April. The product parameters are controlled and maintained according to the USDA Standard guidelines and following GMP rules as per ISO 9001:2000 Quality Management System and HACCP checklist.

NEW PRODUCT DEVELOPMENT

• By new product we mean original products, product improvements, product modifications and new brands that the firm develops through its own research and development efforts. Mainly, there are two broad ways of introducing a new product in the market or developing a new product.

• Through acquisition, the company buys the whole firm, a patent, or a license to produce someone else's product. The other is through,

• New product development in which a new product is developed in the company's own research and development department.

Future Products

• Various value added food products, including dairy and fruit products, are in different stages of development. New products are planned for launch, starting from 2008.

• Dairy Products

PRICE

“Price is the amount of money charged for a product or service.”

It can also be define as:

The sum of values that consumers exchange for the benefit of having or using the product or service.

Pricing is the only element in the marketing mix that produces revenue; all other elements represents costs.

Price is also one of the most flexible element of the marketing mix unlike product features and channels commitments, price can be changed quickly.

Pricing Strategy

According the marketing plan of Shakarganj Good Milk, they are using Premium Pricing Strategy the reason behind the premium pricing is that they are producing Premium quality product and they are doing premium positioning of their product.

The pricing strategy for Shakarganj Good Milk is as such that it is differentiating its products from the rest of the competitors. Its prices are higher than the local brands and are less than the international brands. The price of Shakarganj products is competing with both the local market and international brands.

Pricing strategy requires continuous monitoring because of changing external conditions, the actions of competitors and the opportunities to gain a competitive edge through pricing action.

Pricing Strategy

• Shakarganj Good Milk uses two types of pricing strategies for pricing their products:

1. cost-plus pricing

2. value pricing

cost-plus pricing:

Cost-plus pricing Is used when a standard markup is added to the cost of the product.

Shakarganj Good Milk uses this strategy while Launching its new Products.

They do so as to check their demand in the local markets before starting their production.

Pricing Strategy

Firstly, they analyze the total cost that is incurred in the process of production of new product(s), company's marketing and selling expenses and company's margin (the margin is kept to the minimum in this case).

Secondly, if the product succeeds then they start manufacturing it at large scale. But, if unfortunately, that product(s) does not get the expected acceptance by customers, then they stop the production of such product(s)

ADVANTAGES OF COST-PLUS PRICING

The main advantages of Cost-plus pricing are:

They are more certain about costs than about

demand.

They do not have to make frequent adjustments

as demand changes.

Pricing Strategy

value based pricing:

This strategy is about charging just the right combination of quality and good service at a fair price.

Shakarganj Good Milk uses this strategy For its well established Products

This strategy helps Shakarganj Generate its revenue from its existing Products

Prices of Shakarganj Milk Products

ProductPack Size

Packs per Carton

Price to Retailer

per Carton

Price to Consumer

Per Carton Per Pack

Good Milk 1 Liter 12 611 648 54

Good Milk 500 ml 12 340 360 30

Good Milk 250 ml 27 382 432 16

Good Milk Balai

200 ml 24 844 912 38

Prices of Shakarganj Flavored Milk

ProductPack Size

Packs per Carton

Price to Retailer

per Carton

Price to ConsumerUn chilled

Per Carton Per Pack

Oolala! chocolate

200 ml 12 169 192 16

Oolala! banana

200 ml 12 169 192 16

Oolala! strawberry

200 ml 12 169 192 16

Oolala! mango

200 ml 12 169 192 16

Prices of Shakarganj Flavored Milk

ProductPack Size

Packs per Carton

Price to Retailer

per Carton

Price to ConsumerUn chilled

Per Carton Per Pack

Slim 1 Liter 12 679 720 60

Desi Ghee 1 kg 6 1515 1650 275

Prices of Shakarganj Nectar & Juices

Product Pack SizePacks per

Carton

Price to Retailer

per Carton

Price to ConsumerUn chilled

Per Carton Per Pack

Anytime Juice

1000 ml 12 920 1020 85

Anytime Juice

200 ml 12 425 468 19.5

Anytime Nectar

1000 ml 12 920 1020 85

Anytime Nectar

200 ml 12 425 468 19.5

PLACE

“Placement includes the activities that make the product available to target customers.”

Shakarganj Good Milk is trying to ensure its success by the heavy distribution of its products in the market.

DISTRIBUTION NETWORK

“The network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system.”

DISTRIBUTION NETWORK STRATEGY

Shakarganj Good Milk more prefers the Numerical Distribution Strategy rather then weighted Distribution Strategy. What they are doing is that if there are ten shops in a row they will distribute their product (Good Milk) in all the shops rather then distributing in, say five shops in bigger quantity.

DISTRIBUTION NETWORK STRATEGY

The conditions, which are described by Shakarganj foods to their distributors, are as follows:

CONTACT:

Finding and communicating with perspective buyers.

MATCHING:

Shaping and fitting the offer to the buyers’ needs, including activities such as manufacturing, grading, assembling, and packaging.

INFORMATION:

Gathering and distributing marketing research & intelligence information about actors & forces in the marketing environment needed for planning and aiding exchange.

NEGOTIATION:

Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.

DISTRIBUTION CHANNEL

“A set of interdependent organizations involved in the process of making a product or service for use or consumption by the consumer or business user.”

Market channel consists of all people and organizations, which are involved, in the physical distribution of goods. Selection of proper channel is an important aspect because if the channel is managed efficiently, company can save high costs and thus generate higher profits. The cooperation of channel members is also vitally important. Distribution makes the product available but this availability must assure that the product must be :

At right place

At right time

In right condition

DISTRIBUTION CHANNEL

• MAJOR ZONES OF DISTRIBUTION CHANNELS Karachi Lahore Islamabad Faisalabad Peshawar

DISTRIBUTION CHANNEL

DISTRIBUTOR IN KARACHI

There are six channels in Karachi zone

DISTRIBUTOR IN LAHORE

There are five distributors in Lahore zone.

DISTRIBUTOR IN ISLAMABAD

There are two in Islamabad.

DISTRIBUTOR IN FAISALABAD

There are four in Faisalabad zone.

DISTRIBUTOR IN PESHAWAR

There are three in this zone

DISTRIBUTION CHANNEL

FORM OF RETAIL OUTLETS

General store Pan shops Super store Juice corners Schools and colleges Hospitals Marriage halls Zoo Tombs Bakers and sweets

DISTRIBUTION CHANNEL

WHOLESALE SELLING

Intermediaries of SFPL add value by performing the following functions:

• Financing

• Risk bearing

• Marketing information

• Management services and advice 

Market Channel Strategy

The marketing channel strategy of shakarganj Food Products Limited is to use all the channel level like:

Zero Level Channel

Shakarganj is selling their product (Good Milk) directly to the final customers as they are engage in TV selling, Internet selling and company owned stores (Fair Price Shops)

One Level Channel

A one channel contains one selling intermediary such as retailers, and Shakarganj is using this strategy.

Market Channel Strategy

Two Level Channel

Two level channels contain two selling intermediaries and these are retailers and wholesaler, and SFPL is using this strategy

Three Level Channel

Three level channels contain three selling intermediaries and these are retailers, wholesaler and jobbers, and SFPL is using this strategy.

Market Channel Strategy

Manufacturer

Retailers Retailers

Wholesaler

Retailers

Wholesaler

Jobbers

Manufacturer Manufacturer Manufacturer

Consumers Consumers Consumers Consumers

The Promotion Mix

Let us look at the individual components of the promotions mix of SFPL. Remember all of the elements are 'integrated' to form a specific communications campaign.

Personal Selling.SFPL’s basic focus is on personal Selling .Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the SFPL. They are well trained in the approaches and techniques of personal selling.

The Promotion Mix Sales Promotion.

Sales promotion tend to be thought of as being all promotions apart from advertising, personal selling, and public relations e.g. SFPL’s introductory offers (such as free samples, introductory less prices), and so on.

Public Relations (PR).Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' .It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities

The Promotion Mix

Fairs and Festivals.Such approaches are very good for making new contacts and renewing old ones.SFPL products sell much at such events. The purpose is to increase awareness and to encourage trial.

The Promotion Mix Advertising

Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free), magazines and journals, television ,cinema, outdoor advertising (such as posters, bus sides).almost all of these medias are used by the SFPL.

SponsorshipSponsorship is where an organization pays to be associated with a particular event, cause or image. Shakarganj Sponsored TCF Schools and has adopted 31 local schools, held Nutritional Program for Students and Sponsored TCF Schools During 2007, it also funded special incentives for schoolchildren and teachers

which include scholarships and awards for high- achievers.

Sales And Promotion Activities

• SFPL try to build strong brand equity through its promotion and sales activities.

• We at SFPL make sure that target consumer relates the ads with company products

• SFPL try to make the brand exciting for the target consumers.• The entire production is effectively marketed in selected areas of the

whole country. • The company is developing business relationships with food

processors in the other international markets as well.

Sales And Promotion Activities

• SFPL products have attained brand acceptance and recognition in the national markets through a well developed marketing strategy.

• SFPL has an extensive sales network promoting and selling products in all the regions of the country.

• The extensive distributors' network ensures presence of SFPL products at all relevant retail outlets.

• The sales network serves as an effective medium to penetrate in the market and get customer feedback.

• Marketing and sales teams consist of skilled staff with vast experience in the dairy and FMCG industries.

Sales And Promotion Activities

• Local Events and Activities: SFPL use anything from setting up a booth at a street fair to sponsoring a little league team to display its product or company name.

• Free Samples: the company look for key locations where its can target group can be found and give out free samples. If possible the company give free demonstrations of its service or product.

• Contests: SFPL finds a prize of interest to their target audience and hold a contest.

• Speaking Engagements: SFPL contact local schools, speakers groups, and associations and inquire about speaking engagements, such as lectures, seminars, or classes that they can teach.

Sales And Promotion Activities

• Fliers: SFPL is also exchanging fliers with other noncompetitive businesses who will display them at their location. Also find locations where they can post a flier or bulletin.

• Vehicles: SFPL as a promotion tool paint the name of their business on any trucks and buses they use and even put a sign on the company car or in the car window.

• Press: When launching a new product or activity it develop a list of local editors and producers and send press releases of important upcoming activities.

• Newsletters: Email newsletters or print newsletters are an effective and inexpensive means of promoting the business.SFPL is also engaged in these activities

• Annual Sports Function Every year, annual sport day is held at the Shakarganj Mills Colony, Jhang in February. Different competitions are held in which students from all the schools of Jhang district participate. Prizes and certificates are distributed among winners at the end of the event.

• Contacts and Networking: Hand out your business cards to as many people as possible and network regularly to make new contacts.

• In Store or Online Values: Offer special discounts for second purchases or free downloads online.

• Attend Meetings of Professional Groups: The company also attend meetings of the Chamber of Commerce and other local groups where it can introduce yourself and its business to others.

• Directories: The company make sure to list the company in all appropriate free directories.

Environmental Analysis

Beyond creating short-term transactions, marketers need to build long-

term, profitable relationships with valued customers, distributors, dealers and suppliers. A company should build strong economic and social connections by promising and consistently delivering high-quality products, goods services and fair prices.CDL has built a unique asset called Marketing network. It consists of the company and all its supporting stakeholders with whom it has built mutually profitable business relationships. These are as follows:

Customers Employees Suppliers Distributors Retailers etc.

Environmental Analysis

Customers:      Customers are the key to success of any company so the company is

involve in making good customer relationshipEmployees In shakarganj Internal environment ensures that employees are on

side with the goals of an organization.They have direct impact on product quality, dependability and overall productivity.

Environmental Analysis

Suppliers Suppliers provide the resources like labor and material resources

to produce goods and services. They add to customer overall value delivery system.Labor supplies include handling of:

Quantity of labor Quality of labor Labor strikes Labor relations Material supplies deals with the: Quantity of material Quality of material Price of material

Environmental Analysis

Marketing Intermediaries: • It includes the firms that help the company to promote, sell and

distribute its goods to final buyers.• The physical distribution firms determine the ways to store and

ship goods to reach their destination.• Marketing service agencies including marketing research firms, advertising agencies and media firms are also hired to target and promote product to right market.

Environmental Analysis

In today’s competitive world, competition is not between the companies but rather between whole networks, with the prize going to the company that has built the better network. In the environmental analysis of shakarganj, four factors have been evaluated.

POLITICAL. ECONOMIC. SOCIO-CULTURAL. TECHNOLOGICAL.

Environmental Analysis

Political. The rules of government of Pakistan do affect the company but not

the brands. The company policies are affected but the products still cover the markets. The change in the government also doesn’t effect their production.

Economic. Shakarganj is playing good role in the economic growth of Pakistan. They receive a revenue without much expenditure on this product, which results in a high rate profits

Environmental Analysis

Socio-cultural. People mostly prefer fresh Juices and rely less on packed juices.

Packed juices are changing trends very efficiently and effectively because shakarganj juices are one of the kinds of Juice, which is extracted from fresh fruits directly from the farms.

Technological. They receive machinery and packaging provided by Tetra Pack. Since the company has not only to compete its competitors like Nestle but it also has to fulfill the customer’s requirements therefore the use of latest technology is a must for them.

SWOT Analysis

Introduction:• An effective framework for visioning, developing and confirming your

goals is through an old SWOT analysis – an acronym for Strengths, Weaknesses, Opportunities and Threats.

• It is always said that we need to concentrate on the right priorities to achieve success.

• SWOT analysis is a flexible concept that can be used in various scenarios from assessing projects or business ventures, making decisions, solving problems, evaluating candidates for a position to marketing strategy formulation.

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Strengths Of Shakarganj

These are the internal attributes that add value and give SHAKARGANJ a competitive edge over others . So, take an objective look at:

• What do SHAKARGANJ do well?

• What is SHAKARGANJ USP (unique selling points) ?

• What advantages SHAKARGANJ have over others?

• What relevant resources SHAKARGANJ have access to?

Strengths Of Shakarganj

• PR with farmers SHAKARGANJ has been interacting with the farmers for fertilizers

and has gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company

• Positive response from customers In first year, SFPL crossed 1.4 billion sales figure which shows

customers’ satisfaction upon SFPL’s products. Its taste, quality proposition and world-class quality proposition system.

Strengths Of Shakarganj

• Strong consumer & product research Good Milk’s done a strong consumer & product research before

and after launching the product. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry.

• Latest Plant SFPL has the Latest UHT milk plant. SFPL plant is the plant in

Pakistan that uses Bactofuge technology to virtually eliminate

bacteria and ensure premium quality and hygiene.

Strengths Of Shakarganj

• Parent Support – SHAKARGANJ India has a strong support from its parent company,

which is the world’s largest processed food and beverage company, which is producing sugar for more than a decade.The company has access to the parent’s hugely successful folio of products and brands.

• Product Innovation The company has been continuously introducing new products for its customers on a frequent basis. Marketing and sales teams consist of skilled staff with vast experience in the dairy and FMCG industries.

Weaknesses Of Shakarganj

Low Budget

The weaknesses of Shakarganj Good Milk according to their market plan are:Budget: the one weakness is their low budget then their competitors.

Low Quality Milk      SFPL is not having its own dairy farms; it largely collects loose milk from

farmers & gwalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices.

Weaknesses Of Shakarganj

Reputation, Presence And Reach• Our company has less market presence or reputation as compare to

that of our competitors like nestleGaps In Capabilities• We have a small staff with a shallow skills base in many areas .We are

vulnerable to vital staff being sick, leaving, etc. Supply Chain - The company has a complex supply chain management and the main

issue for shakarganj is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel

Weaknesses Of Shakarganj

    Packaging

SFPL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Good Milk’s for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs.

Milk Collection & Distribution Costs

SFPL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk processing facility is situated at Jaranwala, near Faisalabad. It increases the milk collection & distribution costs; and also increases the chances of milk getting spoiled because of

increased traveling time.

Opportunities Of Shakarganj

Large Potential Market According to their market research, 80% of the total market is using

Gwala Milk which is more beneficial according to them. Shakarganj Good Milk have a large potential market which is the opportunity to grown their business.

Increased funding by Government Government has decided to increase farmers’ funding. This is an opportunity for SHAKARGANJ foods because previously due to weather conditions and other reasons there was lots of wastage of milk but now that can be reduced as farmers will be better able to store milk for longer time periods

Opportunities Of Shakarganj

Increased consumption of PLM

Competition may create opportunities for the company because each competitor in the milk industry wants to increase penetration of processed liquid milk.This will ensure the increase in the consumption of processed milk instead of lose milk and so will in turn lead to increase in sales for the company.

Awareness Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.

Threats Of Shakarganj

Threats are external obstacles in your path that are largely beyond your control.

They are characterised by unfavourable trends like:• downsizing, • obsolescence, • price wars, • competitors with superior skills/products,• shifts in consumer tastes • changing technology.

Threats Of Shakarganj

Competitors Competition may pose a threat because the company will have to

maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitors. For Good Milk’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality.

Threats Of Shakarganj

New Technologies, Services, Ideas The developments in technology change this market beyond the

ability to adapt and this will be a biggest threat for this company in this age of competition

On-line Services A developing market like Internet should be used by the company to

provide more facilities to consumers but the company is currently not making use of on-line facilities

Changing Consumer Trends Trend of increased consumer spends on consumer durables

resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the FMCG sector has been lackluster, despite the economy growing at a decent pace. Although, off late the situation has been improving, the dependence on monsoon is very high.

Threats Of Shakarganj

Organized Gwala companies Organized Gwala companies: there are some organized Gwala

Companies which deliver the milk which have low shelf life and people perceive the milk of low shelf life as a fresh product.

Perceptions and Price Differentials Consumers’ perceptions and price differentials can cause a threat

for the company. It is important that Good Milk’s comes up to the expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications

GAP Analysis

In business and economics, gap analysis is a business resource assessment tool enabling a company to compare its actual performance with its potential performance. At its core are two questions: Where are we? Where do we want to be?“

The goal of gap analysis is to identify the gap between the optimized

Gap Analysis Of Shakarganj

Management of Shakarganj Foods product Ltd conducted the GAP Analysis regarding Good Milk (2008) which came up with a very positive result.

According to them their actual performance is better then their expected performance and they got 20% more then their goals.

Marketing Financials

Marketing financials is a very confidential thing which can not be known by the people outside the organizations and it is the responsibility of the employees takes care of this information.We have been given a rough idea about the marketing financials of Shakarganj Good Milk. The marketing financials of Shakarganj Good Milk is about Rs 100 million.

Problem Analysis

The problem analysis according to the Company:The problems that are being face by the company are discussed above in the section of SWOT Analysis (Threats & Weaknesses)

The problem analysis according to our Group: Good milk lacks a powerful brand name. Good milk is good as a milk choice but its name is not good. For

all stakeholders it’s sure, that good milk will not play in short innings. The brand name endorses the product and boosts its life over a long period. However, good milk came up with a low naming that can not hook customer mind for long

Problem Analysis

Good milk is making big, big, big mistakes in two ways, one is, as you might suspect, Brand Extension and the other is Generic Names (not brand names) Good milk is a weak generic name. Here’re Good milk’s brands, going no where:

Cream (generic name) Khalis Desi Ghee (generic name) kinno Concentrate (generic name) Mango Puree (generic name) Oolala (brand name, however, Line Extended) If they had launched these brands with specific brand name, they

would have worked out a good strategy.

Problem Analysis

Television Advertisement “Roz roz good milk piya kero” the TV ad does not clearly target to

drink SHAKARGANJ GOOD MILK. In analyzing the competitive market it’s not worthy to promote an ad with a jingle speaking of good milk only. The ad stresses on taking milk in any form to boost energy. Again the generic name affects the promotion.

Societal Responsibility Keeping the view of societal marketing, the good milk ads do not clarify the benefits of drinking Shakarganj good milk or making a habit of drinking milk is good.

Problem Analysis

Taste Perception.

      Another problem faced by good milk is its taste perception. The taste is bit sweater and its quality feels lighter. The after taste of milk is not pleasing. The other brands milk packs have a similar taste. The perception of Shakarganj perceives it sweeter in taste

Rectification:

The problems regarding good milk could be rectified if they build a stronger product image.

It should emphasize more on the commercial ads as the advertisement has a direct affect on consumers buying patterns.

This is to be sure that good milk is not playing a short term business; therefore, the management should be well focused in handling the product.

An effective sales distribution analysis should be drawn and prime focus must be the ultimate consumer, so that to proof good milk really GOOD