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Marketing Management (Analysis of Major Juices in Pakistan)

MARKETING MANAGEMENT REPORT EXECUTIVE SUMMARY This project report covers the broad area of impacts of controllable and uncontrollable variables in remote environment for the company, like economic boom or slump, segmentation on the basis of cultural likings and disliking of the consumers along with the social set up and their purchase behavior. An important part of this project report comprises the market situation in which Haleeb is competing. Market acceptability of its products and the upcoming trends regarding to juices are discussed.

A detailed information about competitors like Nestle which is also the market leader and Shezan, and how they are affecting the company is also provided. An overview of distribution system and criteria of Haleeb in case of juices. A brief description of the company’s marketing, non marketing and management’s capability is given which tells us about the company’s internal strengths and weaknesses. Then comes the most important portion of the company’s operations, which is the strategic management of marketing mix I-e 4Ps. And Recommendations and strategies to make its product superior are discussed.

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INTRODUCTION AND HISTORY OF COMPANY History In the 1860s Henri Nestle, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother’s milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestle’s new formula saved the child’s life, and soon, FarineLactee Henri Nestle was being sold in much of Europe. 1905-1918 In 1905 Nestle merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain.

World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestle’s production had more than doubled. 1918 -1938 After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestle’s management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestle’s first expansion into new products, with chocolate the Company’s second most important activity 1938 -1944 Nestle felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939.

Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company’s newest product, Nescafe, which was a staple drink of the US military. Nestle’s production and sales rose in the wartime economy. 1944 -1975 The end of World War II was the beginning of a dynamic phase for Nestle. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse ; Blackwell followed in 1960, as did Findus (1963), Libby’s (1971) and Stouffer’s (1973). Diversification came with a shareholding in L’Oreal in 1974.

Nestle Today: Today, after 142 years it was first used, the nest continues to be the corporate Identity of Nestle as the worlds leading Food Company and remains the symbol of quality. Nestle, the symbol of quality and commitment in the field of food products. Nestle is the world No. 1 food company. It is the 5th largest company in the world according to its turnover. It is present on all five continents, has an annual turn-over of 70 billion Swiss francs, runs 522 factories in 81 countries, 200 operating. History of Nestle juices A well-known brand, FROST was introduced in 1986 and has the largest share of the countrywide market.

Positioned as a cold drink and alternate to cola drinks, its strength lies in the convenience attached to its usage. NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996, the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. Consumer response to these new flavors has been very upbeat and is expected to gain further. Now nestle company have launch following juice brand in Pakistan. Indulge in the pure pleasures of a healthy life!

Nestle brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment. NESTLE® Pure Orange Juice Oranges are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories, and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure NESTLE® Pure Orange Juice has no added sugar and is a good source of Vitamin C. Having Orange juice everyday is a great way of strengthening the body resistance against infections and diseases and maintaining a healthy lifestyle. NESTLE® Clear Apple Nectar

Apples have no fat and are cholesterol free. NESTLE® Clear Apple Nectar is made from the finest Apples and is 100% clear. As irresistible as sin itself – give in to the amber kick of NESTLE® Clear Apple Nectar. NESTLE® Red Grape Nectar Grapes also called the ‘queen of fruits’ are known for their great internal body cleansing properties. They are a good source of Vitamin C and Potassium that plays an important role in proper heart functioning by regulating blood pressure and heart beat. Relish the full-bodied, smooth flavor of NESTLE® Red Grapes Nectar and let your taste buds soak in the sensuous richness of Red Grapes.

NESTLE® Pineapple Nectar Pineapples are good source of Vitamin C, an antioxidant that helps fight against free radicals, one of the main reasons for aging. Made from premium pineapples, NESTLE® Pineapple Nectar brings you the exotic taste of pineapples with a refreshing tropical flavor and is a good source of Vitamin C. NESTLE® Mango Orange Sink into Fruity Refreshment Feel the burst of fruity fun and discover the flavors of NESTLE® Mango & NESTLE® Mango Orange fruit drink made with the juiciest, sweetest Mangos and racy, sharp Oranges to sass up your taste buds.

NESTLE® Chaunsa Nectar Nestle Chaunsa Nectar is prepared from the finest quality Chaunsa mangoes that are procured from the best fruit farms. The 100% rich mango nectar is nutritious, refreshing and wonderfully delicious. It helps to replenish the lost vigor during workouts and enhances your fitness by providing fortified energy endowed with dietary fiber, Vitamin A, C & E. NESTLE® Guava Nectar A chilled glass of pink Nestle Guava Nectar is not only great tasting but is also wholesome in antioxidants making it very nutritious.

Nestle Guava Nectar is rich in Vitamin A, Vitamin B, Vitamin C and Niacin and due to excessive fiber content it is an effective fat burner. NESTLE® Mango Feel the burst of fruity fun and discover Nestle Mango fruit drink made with the juiciest, sweetest mangos to sass up your taste buds. Market analysis Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of small units in the informal sector are working. The present installed capacity is estimated around 400,000 metric tons per annum with a demand for juices growing at a combined annual growth rate of 27%.

The fruit juice industry reported sales of 8. 526 billion Rupees in year 2008. * The outlook for the canned food industry – which can exploit rising demand for convenience and consumer fears over food origin and hygiene – and the soft drinks and beverages industry – which can capitalize on the asp rational demands of Pakistan’s young population – have both been moderately accelerated. Forecast canned food sales growth to 2012 now stands at 46. 7%, while soft drinks sales growth to 2012 is forecast to stand at 36. 4%. Both have contributed to a per capita food consumption growth forecast amendment to 15. %. It is also expected that the average consumption of the single person will be 85. 5 hundred litters per years in 2012. * 2500,000 liters juicesapprox drink by Pakistani people in a month. And per day there is 83330 liters approx juices drink by people. * The market of juices is growing because the consumption of juices increases every year and expected it increase continually due people change the life style and more health conscious. They prefer juices on other soft drink. * The market share of the nestle juices is 60%. Which mean 1500,000 litters in a month and 50,000 litters in a day. Nestle is name of pure life so quality is their guarantee. So if they lose their quality then they lose their sale because these don’t operate on the given image. And increase in rates of raw materials also influence the level of demand because due to increase in cost the sale price also increase and due to price war in a market of Pakistan demand level is effected. Or increase in tax there will be increased cost price which also effect in decreased in demand. Increase in inflation rate in Pakistan then this also effect in decrease in demand level. * The nestle juices are at growing stage of product life cycle. Competitor’s analysis

Competitor analysis in marketing and strategically management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment In order to evaluate the competitive position we have to take a look on the competitors of “Nestle juices” in JUICE CATEGORY. Competitors in market * Shezan Haleeb Swot analysis of nestle juices Strengths 1. Company Image Nestle company has a great image in the mind of people. Nestle company has worldwide reputation. 2. Quality Conscious Nestle produce a good quality products. It can not compromise on quality. 3. Well-developed strategy Nestle has recognizes there is a right time and place for their product; therefore, their strategy makes room for adjustments 4. Market Share Nestle juices has a highest market share i. e. 60% in juices market. 5. Good marketing skills and services Nestle is now a days working on this concept because they want to increase their market share.

They are providing quality products to the customers that include their services and products. 6. Brand strength – In Pakistan Nestle has some very strong brands like Nescafe, Maggie, Cerelac, nestle water and these brands are almost generic to their product categories. 7. Research ;Development Research and development department keeps Nestle in continuous knowledge about itself and competitors. it has a competitor advantage because many local juices have no research ; development department. 8. Product innovation – The Company has been continuously introducing new products, thus expanding its product offerings. . HR department Nestle company has a strong HR department. Weaknesses 1. Storage ability Nestle juices are not storable for long time. Opportunities 1. Support foreign investors Government support foreign investors to invest in Pakistan. 2. Scientifically gas This is great opportunity for nestle company. Because in coming future nestle take the benefits of uses the scientifically gas. 3. Changing Social Trend Consumers in urban areas drink functional drinks on a regular basis as they increasingly adopt Western lifestyles, especially the younger generation which is hugely influenced by the Western media.

Younger consumers tend to follow Western eating and drinking habits. There was an increase in demand for functional drinks over the review period. 4. Health conscious Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realizes that consumption of fruit/ juices is as essential as eating food. Fruit/ juices are doing very well in both urban and rural areas 5. Global hub Since manufacturing of some products is cheaper in Pakistan than in other South East Asian countries. . Market growth Juices market expands very fast . A new research proves that in future (2012) every person use 85. 5 liters juices per years. 7. limited options in real fruits juices Limited options in locally produced real fruitjuices. Threats 1. Government Regulation They face problem if government employ taxes on them which force them to raise the price of their product. 2. Increase in competition There is large competition in juices market 3. Entry barrier There are no many entry barriers so a large numbers of local juices enter in juices market 4. Labor coast

Increase labor cost 5. Inflation rate Increase inflation rate very fast . In 2008 expected inflation rate 23. 3%. Competitive Rivalry The big factor determining the strength of rivalry is how actively and aggressively are rivals employing the various weapons of competition in jockeying for a stronger market position and seeking bigger sales. In the market rival create a great threat. Many companies introduce juices in market and increase threat. Many local company enter in market, there is also great threat for establish company. Nestle juices also face lot of competitor rivalry.

Some carbonated company introduces juices in market, it also create threat for nestle juices. The main competitors of Nestle juices in the market Shezan, Haleeb. Marketing Segmentation We are going to segment juice market on the basis of need. There are following need which we came to know that people like to drink during the following stages: For Travelling and occasional Usually People like to drink during travelling. Because they have to carry single or small packing and juices are the best for that. Juice provide them suitable taste and flavour.

For domestic use Nestle distributes that volume of juice for large family use which may be used in any events and occasions like use with breakfast and dinner etc or serving the guests etc. Targeting 200mlFor Travelling and occasional 1000mlFor domestic use Nestle is first company who launch the these two packing in juices who provide the satisfaction more as compare to competitors but now competitors also move this segment and according to that we are going to launch segment of food energy drink. Product Brand strategy is at the heart of marketing strategy.

It is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customer mind. Nestle brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment Oranges are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories, and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure NESTLE® Pure Orange Juice has no added sugar and is a good source of Vitamin C.

Having Orange juice everyday is a great way of strengthening the body resistance against infections and diseases and maintaining a healthy lifestyle. Point of parity Different flavor Tetra packing Point of difference 100% pure juice Enhanced nutrition This is the point of differentiate that nestle always provide good and pure juices which is fit for human body Brand element Name Nestle juices is the brand name. Slogan ; logo Slogan is the short phrase that communicates descriptive or persuasive information about the brand. 100% pure is the slogan of Nestle juices.

The slogan shows that nestle pure juices have good quality and taste. Nestle juices slogan wants to create image of pure juice with good taste and quality in the mind of customer. Logo of Nestle juices in word marks with text it own name Nestle. Product strategy core benefit Core benefit means the services and benefits the customer is really buying. Our customer fulfills its need of thrust and refreshment by buying our nestle juice. Basic product It’s mean what specifically the actual product is. Our actual product is juice Excepted product

A set of attributes and conditions buyers normally expect when they purchase this product. Normally customers want to drink a juice with greater taste and flavor so nestle provide great and pure juices. Augmented product A product that include features that go beyond consumer expectations and differentiate the product from competitors. Our juice taste and flavor is according to the customer expectations because we provide 100% pure juice. We have no compromise with quality. We try to provide maximum quality and satisfaction to the customers.

Quality is our guarantee and we promised to the customers that we stop the product rather to low the quality of product. Potential product All possible augmentation and transformations the product or offering might undergo in the future. In future we will introduce new pulp juices in the market nearer future. We will launch special juices for sports men and professional working people. PRODUCT COMPARISON IN MARKET COMPANY| QUALITY| SERVICES| LOCTION| EXTRA| | OFPRODUCT| | | FACILITY| | | | | | Nestle | Better| Excellent| Excellent| Good| Haleeb| Normal| Normal| Normal| Normal|

Shezan| Good| Normal| Good| Average| PROMOTION Nestle company use different sources to communicate their target marketing. nestle company use those sources on that the more customer attract like TV, NEWSPAPERS, BILLBORD and when they lunch any secame in juices they use pamphlets to aware their customer. When launch the new juice or new sale promotion for the juice then they spread the awareness about their brand through following communication strategy. Communication objective Nestle company use different sources to attract their target customer.

The objective of nestle produce awareness in our customer about new products and also produce awareness to new customer about nestle juices. Nestle also tells their customer that nestle provide pure juices to their customers. Nestle also give the knowledge of nestle juices that they give you energy and good taste. Nestle also give message that nestle juices are good for your health. Communication strategy of competitor Nestle main competitor is shezanjuice. shezan also use the same communication strategy which adopted the nestle juices.

Shezan is also advertising through TV, new papers, billboard. Adds in TV channel Nestle juices give ads on different TV channel at different time . nestle management also keep in mind that their competitors use what channel and what time they give adds. Nestle management also keep in mind what type of customer they attract and what time they sit before TV. nestle juices different time on different channel to keep in mind the target customer TV watching time. nestle juices give ads on PTV home,GEO,ARY an PTV news. News papers Nestle company advetise their juices through news papers. arge numbers of custmers have reading habits of news papers, so nestle use the media of news papers to attract their customer. nestle management also keep in mind that their competitors use what type of news paper and what time they give their ads. so after all these analysis nestle select DAWN and NAWAE-WAQT. nestle give their ads on both news paper at the time of Sunday. Billboard Nestle juices attract their customer through billboard. Nestle company select the main city in country and those places where large numbers of customer easily attract. Nestle has a polices to use 500sqr fts in each region. PLACE

Nestle Company establishes the distribution channels in each famous city of Pakistan like Islamabad, Karachi, Lahore, Gujranwala, Faisalabad etc. They also acquired the suitable distributors in each city. They hire maximum two or three distributors in a city due to prevent from their own competition. The provide the margin to the retailers is equal to the interest of band like 7% to 8%. They also pay to use the shelf to store the nestle juices to the retailer for sale to the final consumers. Manufacture Where houses Distributor Retailer Whole seller Customer Nestle juices uses different channel to distribute their product.

First of all the finishing goods stored in the ware houses and the next step products sending you the distributor and distributor distribute throw different channel to whole seller to realtor and the end to purchasing customer. Nestle distribute their product regularly to distributions because their customers satisfy nestle services. Nestle company distribution channel urban areas and rural areas, in rural areas the wholesaler distributes the Nestle juices to the retailers store, and the rural areas the distributor have a responsibilities to distributes the product to all the realtors stores.

Nestle company target market in Pakistan all the big and important cities Price Strategy Nestle juice are available six flavored and two size in the market. One is 200ml and second is 1000ml. The packing of 200ml target of individual customer and 100ml packing target the whole family. 100% clear juices, the prices on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Pricing objective Maximum profit margin Nestle juices is a big price objective that they provided high quality and positing and we taken premium price to our customer other than our competitors.

Nestle juices contain maximum profit margin other than their competitors. Quality leadership Nestle juices is a main objective that its responsibility to provided best quality who they promised to their customers and they fulfill their promised. In the recent research nestle juices is market lender in the soft drink market. Long relationships with customer. Nestle juices provided superior value to their customer who they promised throwing advertising. So the customer are loyal the nestle brand. Price Structure (Consumer price) 200ml 25Rs. 000 ml 105Rs. (Mango and orange mix flavored) 1000ml 120Rs. (Pineapple and red grapes) As they are market followers, they respond to the price strategy of market leader (Nestle) in following manner: Hold current price; Has competitor continue to monitor Cut prices competitor’s price. Yes Will lower price Negatively affect our Market share ; profits?

Reduce price Yes Raise perceived Can/should effective No quality Action be taken? Improve quality And increase price Launch low-price “Fighting brand” Price Demand curve Demand have a impact on a company objectives because price are inversely to demeaned, if price is high so demand is low of the product .

Nestle company always aware of the price sensitivity of the customer so it known about purchasing power of the customer. Nestle juices demand curve is elastic because lower price and higher quality produces high revenue. Going rate pricing Nestle company selecting a price method of going rate price. Because their pricing near the competitor pricing. Shazan juices price is same of our nestle juices . nestle juices has a market leader in beverage industry. Final price

Nestle set the final pricing related to their market competitors so nestle price do not have impact on the company policy ,and other marketing activities. Marketing Analysis Of Shezan Twist juice Brief History S hezan Company was incorporated on May 13, 1964 as a private limited company, with the objectives as set out in the Memorandum of Association in general and in particular to set up an industrial understanding for manufacture of juices, squashes, sharbats, jams pickles and preserves from fruits and vegetables Nature has blessed Pakistan with an ideal climate for a wide range of delicious fruits.

Over the centuries Pakistani experts have acquired and developed unique strains of exotic fruit varieties, unmatched for their rich flavor and taste Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U. S. A in1964. The agriculture background of the Pakistani sponsors induced them to establish this agro-based industry. Taking advantages of abundance of fruits available in Pakistan, and the advanced technology provided by the American partners, Shezan became pioneers in the field of converting fruits into pulps, concentrates and juices.

Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country’s and export needs. In 1971 the Shahnawaz Group purchased all the shares of Alliance Industrial Development Corporation with the permission of the Pakistan Government. The Company has since shown sustained growth in both the domestic and exports fields. The Company has been steadily expanding its production capacity over the years. In 1980-81 a separate unit was installed in Karachi which now caters for Karachi, Sindh and export demand. A new bottle filling plant was set up in1983 in Lahore unit increased the capacity five-fold.

An independent Tetra Brick Plant was commissioned in 1987 making us the leading manufactures with comprehensive range of production in the fruit processing field in Pakistan. Vision statement “To be known as leader of quality products in the region. Dedication to quality is a way of life at our company. In its activities the company will pursue goals aimed at the achievement of profitable business . these results will be derived from the dedicated efforts of each employee in conjunction with supportive participation from management at all levels of the company .

To pay its role in the economic development of the country and to enhance quality of life of its people” Organization Chart Product Range Shezan is producing a variety of quality products. Shezan is largely considered as second market leader in fruit and vegetable processing industry. Shezan has an edge over other with its own fruit farms. Currently Shezan is giving tough time to other fruit juice manufacturers due to its quality and huge export volume as well as capturing local fruit juice market where it has competition with Nestle and Haleeb. Local Consumer Products

Following are the major products that Shezan is producing currently: 1- All Pure 2- Juice Bottles 3- Regular Juices 4- Twist 5-Syrups 8- Sauces 6 -NR-Bottles 9- Jams 7-Vinegar 10- Quench 11- Squashes 12- Mango Nectar 13-Pickles 13- Ispaghol Marketing Mix “Marketing Mix is the set of controllable tactical marketing tools that are product, price, placement and promotion.

The firm blends these tools to produce the response it needs from the target market. ” 4 P’S OF MARKETING MIX Product What Is “Product”? “Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need is a product. It includes physical objects, services, persons, places, organizations and ideas. ” Shezan Twist C omprising of a blend of different fruit juices, shezan`s Twist juices open the door to a whole new world of possibilities. Available in easy to drink slim packing twist juices are a must have in every household Nature of the product

Everyone has their own ideas about replacing essential body fluids, vitamins and minerals – whether it’s after exercise or just a tiring day at the office. Fruit juice is still one of the best ways to replenish the body’s essential nutrients and it’s a natural source of energy. Common people especially young generation is inclined to have ready to consume drinks; in addition hotels, hospitals are also expanding day by day where juices could be marketed successfully. Ingredients in Shezan Twist Juice (Product) Energy127 cal Total Fat0. 0 gm

Proteins 0. 15 gm Total Carb32. 5 gm Sodium1. 5 mg Sugar31 gm Vitamin C5. 7 mg Percent daily values are based on 2000 calorie diet Storage Products will be stored in cool dry store before distribution. Product Shelf life Twist Juice in 250ml serving packs have shelf life of less then 6 months. Packaging Material Used * Health and safety are directly linked with the packing material used and people are much concerned about it. * That is the primary reason why ‘tetra pack’ packaging has been used by Shezan in twist rather than other packaging materials i. . Tin pack, aluminum laminate pouch pack, and plastic bottles. Product Flavors Available 1-Apple 2- Raspberry, 3- Pineapple, 4-Fruit punch, 5-Mango Strawberry, 6-Mango The Target Market of the Product The target market of Shezan twist juice includes teenagers. Basically they are targeting the students of schools, Colleges and Universities. Competition of the Product The key competitors of the product are 1. Nestle 2. HaleebTropico. Market and Positioning Of the Product The market is highly saturated in the drink, which are ready to use.

Performance in the Market of the Product ————————————————- BrandMarket Share Nestle juice45% Country juice5% Tropico Juice 18% Shezan Twist juice35% Pricing What Is “Price”? Price is the value placed on goods and services. Price is the amount of money and /or goods needed to acquire some combination of another and its accompanying services. Pricing Strategy Shezan when introduced twist juice in the market set the price at Rs. 12/- while the competitive price was Rs. 0/-. This above average price was due the better quality product and a new Juice brand by a well knows Juice Company and Industry giant. Current Price * The current price of one 250ml pack of Twist is Rs. 20/- Available Size of Shezan Twist Juice * The Shezan Twist juice is available in only one size of 250 ml Price Control There are no price controls and this has happened after the introduction of local government system under the devolution plan. Companies are given free hand in charging enormously high prices for processed food items.

They use little quantity of Fruit pulp in making the juice and charge very high price. Pricing Objectives The objectives of Festival Juices for pricing Juice Products are as follows: 1. To achieve a target return. 2. To maximize profit. 3. Stabilize prices to meet competition. 4. Market share Leadership 5. Product Quality Leadership Price Table with the Pure Competitor Name of the Company| Price Of the Juice| Nestle Juice| Rs. 20/-| Shezan Twist Juice| Rs. 20/-| Country juice| Rs. 12/-| Tropico Juice| Rs. 12/-| Factors Affecting the Price of Shezan Twist juice

The following are the some factors that are affecting the price of Shezan twist juice. * They are using the expensive technology * The transportation , roads are not in a good condition * The un stable politicians, which have positive and negative effect on the price * The labor cost is low in Pakistan as compare to the others * The advertisement is increasing the cost price of it but this is necessary * Due to increase in taxes the price of them is also increased * They are using tetra packing which increase their cost.

Placement The distribution network includes the distributor then the wholesaler and in the end the retailer. Again benefits are provided on the achievement of the sales targets and timely delivery of products. In some cases products are provided to big retailers by the distributor itself but mostly it is being purchased by the retailer from the wholesaler. The Channel of Distribution:- * * Market * Local seller * Whole seller * Zonal offices * Company. Distribution Strategy

Through the heavy advertisement the distribution can be affected because the distribution mainly depends upon the demand. In the Shezan twist they are using the above channel fro distribution the product * Some of people who wants to purchases very heavy amount of the twist juice , they come to the company directly and buy which is required * The whole seller are purchasing them for the resale able purpose but less then the first once * They have Zonal offices in different areas such as Rawalpindi, Lahore, Multane. . c to make it easy to sell. Demand increases They always have the backup store juice to fulfill this demand Logistics * To deliver the right quality and quantity of the twist juice, they are working on the daily bases * They have large number of trucks to achieve all the things according to their product * For distribution they are always have the future planning Promotion Shezan is using following mediums for promotion of twist * Billboards * Television * Radio * Newspapers * Broachers * Internet

They are doing these things according to the plans, for example * They now wants to advertise the product more through media by using the famous people * For the promotion of the product they are giving the free product in the start of the season * Large discount for the people who purchase the Shezan twist juice directly from the company and in large amount * Giving free samples to the people who visit the company * They are also arranging some charity shows in Karachi * They have given a very large amount to the people who suffers form the earthquake in Pakistan * Stale operations are functioning in which they are giving the free testing samples * There are spending a lot of money in the preparation of mosques * There are giving free Translated Quran, which are in more than 150 languages * They are also working in a Islamic Jameet named Ahmediya Target Fragment

The target fragment for the product is the people using juices instead of the soft drink like Coke and Pepsi . SWOT ANALYSIS (ACCORDING TO THE COMPANY) Strengths * Conveniently placed factory * Pure and natural products * Qualified sales staff * Strong financial backup * Good distribution net work * Effective advertisement campaign Weakness * Due to high rate of taxes our process are higher * Tax evaders sell product on much less prices and retailers blackmail for better profit margins Opportunities * Expansion of distribution net work * Diversification of product * Addition of new varieties * Modification according to present requirement Threats * Discount offered by competitors Low quality food products on cheap prices * WTO * Less awareness of health * Nutritional facts of products with consumer SWOT ANALYSIS (ACCORDING TO OUR GROUP) Strengths * The Name of the company Shezan * One of the oldest company in private sector * Using foreign technology * The honest and determined employees * A global business * ISO certificated * They are using near to pure Ingredients * No complains on the quality Weaknesses * Internal environment is not so good * Advertisement is weak * Distributors are not impressive * The sales manager have no much experience in this field * Product is promoting mainly in teenagers Opportunities They can introduce the Shezan twist in unready form * By increasing the advertisement, possibly the sales will increase * They can introduce this in 1 Liter packing * More and new flavor can be introduced * They can introduce these twist juices in powder form Threats * High taxes on them * They cant export without the permission of the Government * The Currency Value of the Pakistan is low * This product is seasonal * They are paying high taxes in exporting * Discount offered by the competitors (Tropico) INTRODUCTION Building an excellent reputation over the years, Haleeb Foods continues to be at the forefront of product and packaging innovation.

By the grace of God, it has achieved market leadership in several food categories with a very strong portfolio, consisting of leading national and international brands –Haleeb Butter , yogurt, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good Day. Apart from its extensive nationwide distribution networks, Haleeb Foods is also serving several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Haleeb Foods has also introduced a number of unique roducts previously unknown to the Pakistani market, like THaleeb LabbanT, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt, TCandia Tea MaxT, cardamom flavored tea whitener, TCandiaTmilk, packed in distinctive food grade plastic bottle, and THaleeb Good DayT, 100% pure and natural fruit juice, free of added sugar, artificial flavors and preservatives. All this and more makes Haleeb Foods Pakistan’s number 1 and fastest growing packaged food company. As of fiscal 2009 its annual turnover is Rs. 7. 2 billion. TUInternationalCertificationsUT Haleeb Foods’ products are made with great care, and marked with our quality seal of recognition.

We are the only dairy company in Pakistan that undertakes 21 rigorous quality control tests on every portion of the milk collected by our teams. These internationally recognized tests are used to check for: a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents. All processes, from preparation to quality assurance to packaging, are undertaken employing state-of-the-art technology and equipment. Therefore, we take great pride in the fact that Haleeb Foods is the only food company in Pakistan that has the following international certifications of quality and prestige: • HACCP (in process controls for safer products) ISO 9002 (better quality for greater customer satisfaction) • ISO 14000 (environment-friendly operations) Product categories targeted byHaleeb and products competing in those categories Product category Competitors’ products Pure juices Pure juices Nectars Nectars Juice drinks Juice drinks Competitors and their products competing in these product categories: Competitors Competing products Nestle Pure juices ,nectars and juice drinks. Shezan Pure juices ,nectars and juice drinks. SITUATION ANALYSIS Business definition and scope Mission statement(s) Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders’ value. There are three categories Product category: I A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. Six premium juices • Apple • Pineapple • Red grape • Mango • Orange and • Mixed fruit Give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging. Product category II Delicious juice drink especially for kids, enriched with calcium, and vitamins A, C ; D.

An exciting treat, packed with health and a great taste, Fun day juices will surely be an instant success with kids with their unique and amusing names, • Aamonka (mango) and • Arrochee (peach and lychee). They are packed in a 6-layered Tetra Pack Brick Aseptic packaging. Product Category III The premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavours: • Apple • Mango, and • Mix fruit These juice drinks are packed in a 6-layered Tetra Pack Brick Aseptic packaging. The market – Customers (end users) – for the product categories Targeted Category I Scope Scope of their target market In this segment is not very broad, becase they are foccussing only elite class of the country, which are very fewer in number.

But at the same time the current and projected sales are not very small. Because of theuse situation which explains that These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and don’t include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices and brand loyality in this case may lead to strong purchases. Income: People having income 50,000 and above. Age: Youth an old age people are taken as the most important targets Gender: Females in emphasis, while males also are considered

Family-size All family sizes Life-cycle stage That life cycle stage is given more importance which includes more young people Geographic location A class superstores and grocery stores in the high traffic markets in posh areas of all the cities of distribution throughout the Pakistan. Use situation These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and don’t include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices. Category II Scope

Scope of this market segment is satisfactory because they are targeting middle class of society which include relatively greater number of population as compared to that of upper class. They are expecting larger sales in this segment. Income: People having income Rs. 30,000-35,000 are included in this segment. Age: All age groups are considered such as: children, youth and old age. Gender: Both genders i-e male and female are included in its target consumers. Family-size All family sizes Life-cycle stage Every stage of the life-cycle is considered. Geographic location High-class as well as middle super stores in high traffic markets of both posh areas as well as iddle class towns and colonies of big cities throughout the Pakistan are targeted. Life- style These “Nectars” are offered to that class of society that are sophisticated, quality conscious but cannot afford as much high prices as of Good Day. Its hygienic packaging also attracts health conscious people. Category III This category belongs to Haleeb juices ‘Tropico’. The emphasis of the rest of the report will be on these juices. Scope Scope of this segment is very broad as they are focusing each and every person in middle and lower class. The scope of this segment can be estimated from this calculation that Haleeb is selling 800,000 units of juice drink specific for this segment.

Income: People having low income level and the children who are not earning hand and are dependent on pocket money are included in this segment. Age: School going children and college students are given high importance while people of all other age groups are considered as target groups. 1. Gender: Both genders i-e male and female are included in its target consumers 2. Geographic location: Through out the Pakistan in both privileged and un-privileged areas. 3. Occasion Use : These are the simple drinks, which are used in school/college canteens, parks, small shops at roadsides, bus stops and on small and large general stores in streets etc. Marketing capabilities

Marketing department of the Haleeb food Company specially in juices is sufficient but not up to the requirement because for juices advertisement and promotional campaigns are conduct in different areas of Pakistan but in not all areas of Pakistan but marketing organization of Haleeb food is working well and market intelligence and marketing planning is very strong aspect of management of marketing. Marketing Mix The marketing mix is the set of controllable tactical marketing tools, product, price place and promotion that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. The 4 P’s of marketing mix are: • Product • Price • Place • Promotion Product: “Tropico”

With the quality assurance of Haleeb Foods, Tropico is the premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavors: apple, mango, and mix fruit Size: • 1000ml Pack: 12 Packs/Carton • 250 ml pack: 36 packs/carton • 250ml Pack: 27 Packs/Cartons Product/brand positioning It is positioned among its consumers as “readily available drink”. Product Strategies Product strategies are designed in a sequential manner as : Product attributes Branding Packaging Labeling Product support services Product attributes Ingredients: Fruit pulp, sugar, citric acid, Permitted food stabilizer (E-466), Preservatives: (E- 211), Color: (E-110). a. Quality:

The artificial flavors used in these drinks are of good quality. b. Branding: The name of Haleeb and its insignia (——-) are printed on its pack. Besides this the pictures of the specific fruit in attractive color are also printed on its pack. c. Packaging A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container. d. Labeling Other labeling printed on the pack includes ingredients, expiry date, price and batch number. Pricing strategies “Bottom” or “Lowest prices” are set for these drinks, And penetration strategies are implemented in this segment. Price structure Consumer price ; 200 ml :12 Rs. Place/Distribution Strategies This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributor’s storage place which should be neat, clean and up to the mark, his motor vehicle etc. • Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered. • Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers. • Tropico drink is distributed to all possible location throughout the country. Promotional Strategies

Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Tropico drinks following promotional strategies are used: 1. Advertisement In case of Tropico drinks only television adds and the adds on newspapers and magazines are used as promotional tool. SWOT ANALYSIS Strengths: • Haleeb Foods is the largest National Food Company. • Strong brand loyalty of customers of Haleebcompany. • Haleeb Company has monopoly situation in different flavors of pure juices. • Haleeb foods have best distribution channel in all over the Pakistan. • Haleeb offer high quality products especially pure juices in market. Management team of Haleeb Company is very strong and educated. • Haleeb foods have strong positioning in customer mind. Weakness: • Less product awareness in customer mind. • Packaging of juices product is not good, and not so much attractive. • Haleeb company has very high prices in pure juices like apple, pineapple, mix fruit, red grapes mango flavor. • Haleeb Company conducts less promotional activities for its juice products. • Less display centers use for juices products in main shops of different cities. • Haleeb Foods Company has late recovery of claims. Oppurtunities: * High market size * Low tax rate * Economic development * Good qualityproducts Living standard ofpeople is becominggood * Increasing workforce * Technological advancement in HALEEB’s operations as for as local operation are concerned. * There are a lot of untapped markets in different areas of Pakistan. Threats: * New rivals. * Strong competition. * Increasing rate of inflation. * High prices. * Low awareness of product. * Trend of using imported juices. * Low promotional activities. * Technological advancement of “Nestle” as they are market leader ; doing juice manufacturing onautomated machines. * High cost to pay foradvanced machinery. * Processing of pulp is very costly. * Competitor in nectar have more customer loyalty. Competitive review

Evaluating that how organization is competing in the market place to take advantage of opportunities ;over coming the threats in order to take competitive advantage over the rivals. In order to evaluate the competitive position we have to take a look on the competitors of “HALEEB FOODS” in JUICE CATEGORY. Key Competitors 1. Nestle It is a multinational company operating in broad range of products but from the juices point of view “HALEEB FOODS” consider it the competitor. Nestle has strong financial backup its requirements to retailer, distributor are most sophisticated as compared to “HALEEB FOODS”. As the business of juices is profitable many new competitors are entering in the market.

Some existing companies are also going to diversify and introduce the juice category as “Nurpur”has introduced itself with dairy products but diversified to nactor. “HALEEB FOODS” pursue the strategies of the competitor so it is market follower not market leader. 2. Shezan RECOMMENDATIONS for Haleeb * The concentric diversification in different juices products. * There are a lot of untapped markets in different areas of Pakistan. * “HALEEB FOODS” can be market leader by introducing new flavors in juices. * Haleeb FoodsCompany canBecomemultinational andcan targetdifferent market of differentcountries. * Motivate distributor to work hard for better results. * By increasing bonus on target sales can increase in sales. People are becoming quality conscious and the market trend is changing they need to change the packaging of the juice because its previous look was not so good and depicted a bad image. * Their can be Innovation which totally substitute the product. As we have mentioned that Haleeb needs to improve its distribution strategy. Haleeb is targeting youngsters as a potential and big market for its twist juice so if company supply directly to the schools, colleges and universities it removes intermediaries and due to high profit ratio cafe owners will promote Twist compared to other juices. Schools Colleges Universities Company Owned Distribution House Another important recommendation we want to give is this that Haleeb need to come up with a different kind of packing.

Juice packing with straw is not convenient for consumer as sometimes juice fell when we insert straw and sometimes some juice still remain in the pack that cannot come up with the straw. To resolve this issue Shezan must introduce packing with cap on it in spite of using straw. Quantity should be increased to 300ml and price should be Rs. 25/- “HALEEB FOODS” pursue the strategies of the competitor so it is market follower not market leader. References As the data for Pakistan beverage market and especially the juice market is skater on the cyber space so here are some links from which data about the particular market obtained. www. cia. gov www. nestle. com. pk www. haleebfoods. com/ www. shezan. com/ M Usman (Distributor)


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