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University Of Central Punjab

Business plan SHEZAN


Made by?
Muhammad Amjad Abbasi

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Acknowledgement

We have the pearl of our eyes to admire blessing of the compassionate and
omnipotent because the words are bound, knowledge is limited and time is short
to express His dignity. It is one of the infinite blessings of almighty ALLAH that
He bestowed us with potential and ability to complete the present training and
make a material contribution towards the deep oceans of knowledge.

First we avail this opportunity to bow our head before ALLAH almighty in
humility who given us the wisdom and perseverance for completing this piece of
report.

We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch.
We feel highly privilege to ascribe the most and ever burning flame of my
gratitude and deep scene of devotion to the Prof. Irfan Iqbal who taught us
“business project” with heart and also gave a guideline to this report.

JUNE 2009

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Table of Contents

Company Profile…………………………………………………………..7

 Board of Directors……………………………………………………………….7

 Audit Committee……………………………………………………………….7

 Director & company Secretary……………………………………………….. 7

 Auditors…………………………………………………………………………7

 Chief Financial officer…………………………………………………………7

 Legal Advisors…………………………………………………………………7

Brief History …………………………………………………………….8

Vision & Mission Statement……………………………………………9

Product Range……………………………………………………………10

 Local Consumer Products……………………………………………………

 Exports…………………………………………………………………………

Process of making……………………………………………………….

 Fruit Juice - Production Process Flow…………………………………………

 Fruit juice production process …………………………………………………

 Packing……………………………………………………………………………

 Storage…………………………………………………………………………..

 Product Shelf life……………………………………………………………….

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RAWMATERIAL REQUIREMENT…………………………………………………

 Other Raw Material……………………………………………………….

TECHNOLOGY AND PROCESSES……………………………………………….

 Machinery requirements…………………………………………………

SECTOR & INDUSTRYANALYSIS………………………………………………

 Sector Characteristics and overview………………………………….

Marketing Mix………………………………………………………….

 Product ……………………………………………………………………

 What Is "Product"? ……………………………………………………..

 Nature of the product…………………………………………………..

 Ingredients in Shezan Twist Juice (Product …………………………

 Product Flavors Available……………………………………………..

 The Target Market of the Product ……………………………………..

Competition of the Product …………………………………………….

 Direct ………………………………………………………………………….

 Indirect Competitors…………………………………………………………

 Shipping Units……………………………………………………………

 Market and Positioning Of the Product……………………………………….

 Performance in the Market of the Product……………………………………

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Pricing……………………………………………………………………….

 What Is "Price"?…………………………………………………………………..

 Pricing Strategy………………………………………………………………….

 Current Price……………………………………………………………………

 Price Control…………………………………………………………………..

 Pricing Objectives……………………………………………………………..

 Factors Affecting the Price of Shezan Twist juice…………………………

Differential Advantages the Company Have………………………..

Placement …………………………………………………………………

 The Channel of Distribution………………………………………………….

 Distribution Strategy…………………………………………………………

 Distribution Areas……………………………………………………………

 Place for storage………………………………………………………………

 Demand increases……………………………………………………………

 Logistics……………………………………………………………………….

Promotion…………………………………………………………………

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 Target Fragment………………………………………………………………….
 Budget for Promotion…………………………………………………………..

Environmental Analysis……………………………………………………………….
 The Company……………………………………………………………………

 Suppliers………………………………………………………………………….

 Customers…………………………………………………………………………

 Competitors……………………………………………………………………….

 Internal environment……………………………………………………………..

 Internal environment…………………………………………………………….

 Distributors……………………………………………………………………….

BCG Matrices……………………………………………………………….

SWOT ANALYSIS…………………………………………………………

Conclusion………………………………………………………………….

Recommendations…………………………………………………………

Company’s Profile

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Brief History
Shezan 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

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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

The Shahnawaz Group of Pakistan and Alliance Industrial Development


Corporation of U.S.A in1964 conceived Shezan International Limited as a joint
venture. 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 in
1983 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
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“To be known as leader of quality products in the region.

Dedication to quality is a way of life at our company. In its

activities the company will pursue goals aimed at the

achievement of profitable business .these results will be

derived from the dedicated efforts of each employee in

conjunction with supportive participation from management

at all levels of the company .To pay its role in the economic

development of the country and to enhance quality of life of

its people”

Mission statement
“Our mission is to provide the highest quality fruit and

vegetable related juices and products to retail and food

services customers. We will accomplish this by maintaining a

tradition of pride in our products, growth through

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innovation, integrity in the management of our business and

commitment to team management and quality improvement

process.”

Product Range
Shezan is producing a variety of quality products. Shezan is largely considered
as market leader in fruit and vegetable processing industry. Shezan has an edge
over other with its own fruit farms. Currently Shezan is giving tough time to
other fruit juice manufacturers due to its quality and huge export volume as well
as capturing local fruit juice market where it has competition with Nestle and
Haleeb.

Products can be divided into the following

Types of Products

Local Consumer Products Exports

Local Consumer Products


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Following are the major products that Shezan is producing currently:

1- All Pure

2- Juice Bottles

3- Regular Juices

4- Twist

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5-Syrups 8- Sauces

6 -NR-Bottles 9- Jams

7-Vinegar 10- Quench

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11- Squashes

12- Mango Nectar

13-Pickles

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13- Ispaghol

Exports

Process of making

Fruit juice production procedures involved in fruit juice manufacturing.

Fruit Juice - Production Process Flow

Production of fruit juices is a standardized process and type of technology


depends on type of fruits and scale of operations. Initial preparatory processes
for all fruits will be similar, as will be the last stages of juice/pasteurization
section and packaging, although differences in handling juice composition
arise in certain cases due to the nature of the fruit and percentage of pulp
involved.

Basically, preparation process of Twist juices involves the following steps:-

• Washing and cutting of fruits

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• Boiling of fruit pulp


I) Pulp Storage in Tank

II) Sugar Hopper

• Pulp and ingredients mixing


• Syrup Storage in Tank
• Juice Preparation
• Juice Storage Tank
• Filling and Packaging
• Cooling and Storage

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Fruit Juice Production Process

After washing and cutting the fruit pulp is separated after that Pulp is shifted to
the boiler where it is cooked and shifted to the plate heat exchanger. Pulp is then
stored in the pulp storage tank. Pulp is then supplied to the mixing tank in the
desired quantity while in mixing tanks; any additives to the pulp are made at
this stage before it is pumped to syrup storage tanks. Blended juice is then
pumped through pasteurizer; where it is heated to 90oC to inactivate enzymes
and living organism. After pasteurization the juice passes through final
filtration, before loading it into a juice storage tank. Juice from the tank is
ready for packaging

Packing

The juice will be then packed in the quantities 250ml. Packaging is done on
imported machinery as it considered being highly sophisticated and hygienic

Machinery Used -Fruit Juice Filling & Packaging Line

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S.
Machine Capacity Local/Imported
No.

7500 packs of
1 Tetra Pak –TBA 19 Tetra Pak
250 ml/ hr

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.

RAWMATERIAL REQUIREMENT

Raw material required for manufacturing fruit juice are fruit pulp, citric acid,
food color, sugar, preservatives and fruit flavors. Although, juice manufacturers
use molasses to thicken the juice, this is not a good practice and therefore should
be avoided. All raw materials are easily available in the local market, however,
fruit pulp is considered to be the principal component of the high quality fruit
juice, therefore, its continuous and within the required quantity availability will
need some advance planning. Fruit pulp could be purchased from open market
or directly from pulp producers, however, it would be safe to sign a contract or
negotiate with a pulp producer to insure the availability of pulp before the
commencement of production operations. Prices for the fruit pulp have been
collected from the market and are given below:

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Other Raw Material


The ratio and utilization of other raw material depends on what percentage of
pure juice the unit is going to produce; however, following are the main
ingredients which will be required for the juice production proposed for this
product.
 Treated Water 75%
 Fruit Pulp 17%
 Sugar
 Citric Acid Fruit Flavor 8%-10%
 Preservative

Machinery required for the processing of fruit and juice packaging is available
both local and imported. Local packaging machinery reportedly give poor
quality output especially for fruit juice packaging which is considered to be
highly sophisticated and hygienic; hence it could not be done by using local
machinery. However, pulp processing and juice production could be done on
locally fabricated machinery. Following machinery will be required for setting
up a fruit juice plant:

 Fruit Juice Pre-Packaging Production Line


 Fruit Juice Filling & Packaging Line
 Fruit Juice Cooling and Refrigeration Machinery

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MACHINERY REQUIREMENT
For the fruit juice production, packaging and storage both local and imported
machinery can be used, however, for packaging it is proposed to use imported
machinery rather than local machinery which is although a low cost option, yet
do not provide good quality and quantity of output.

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SECTOR & INDUSTRYANALYSIS


SECTOR CHARACTERISTICS AND OVERVIEW
Agriculture sector highly depends on the weather circumstances. God has gifted
Pakistan with several varieties of fruits and vegetables. Modern processing and
packaging techniques make seasonal fruits and vegetables available all year
round to almost all parts of the globe. Tropical fruit like mangoes can be enjoyed

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in temperate countries. Today, the world horticulture industry is a $77 billion


market comprising of the following sub sectors.

 Vegetables; fresh or preserved


 Fruits and nuts; fresh or preserved (excluding oil nuts)
 Fruit and vegetable juices (unfermented).
 Spices
 Bulbs, tubers, rhizomes of flowerings
 Cut flowers and foliage

Provincial fresh fruits production share is provided below:

Province % Share

 Punjab 59.6
 Sindh 8.6
 NWFP 6.2
 Balochistan 25.6

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Marketing Analysis Of

Shezan Twist juice

Product

Marketing Mix

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"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."

Marketing Mix

Product Price Placement Promotion

PRODUCT
What Is "Product"?

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"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

Comprising 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)

Energy 127 cal

Total Fat 0.0 gm

Proteins 0.15 gm

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Total Carb 32.5 gm

Sodium 1.5 mg

Sugar 31 gm

Vitamin C 5.7 mg

Percent daily values are based on 2000 calorie diet

Product Flavors Available

1-Apple

2- Raspberry,

3- Pineapple,

4-Fruit punch,

5-Mango Strawberry,

6-Mango

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The Target Market of the Product

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

Competition of the Product

Direct

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Indirect Competitors

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

Shipping Units

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36 Packs per carton


250 ml
(6*6 Wrapped Packing)

Market and Positioning Of the Product

The market is highly saturated in the drink, which are ready to use

Performance in the Market of the Product

Brand Market Share

Nestle juice 45%

Country juice 5%

Tropico Juice 18%

Shezan Twist juice 35%

International 02%

Pricing
What Is "Price"?

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Price is the value placed on goods and services. Price is the amount of
money and /or goods needed to acquire some combination of another and
its accompanying services.

Pricing Strategy
Shezan when introduced twist juice in the market set the price at Rs.
12/- while the competitive price was Rs. 10/-. This above average price was due
the better quality product and a new Juice brand by a well knows Juice Company
and Industry giant.

Current Price

 The current price of one 250ml pack of Twist is Rs.15/-

 When we purchase 3dozen of 250ml of Twist than the price of this is


Rs.468/-

Available Size of Shezan Twist Juice

The Shezan Twist juice is available in only one size of 250 ml

Price Control

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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.

Overall Distributor or Whole Seller Margin 07-10%

Retailer’s Margin 12-15%

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Purchase
Source Sale Price Profit
Price

School, Colleges and


12 15 3
Universities

Whole Seller 12 12.90 .90

Retailer 12.90 15 2.10

Pricing Objectives

The objectives of Festival Juices for pricing Juice Products are as follows:

1. To achieve a target return.

2. To maximize profit.

3. Stabilize prices to meet competition.

4. Market share Leadership

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5. Product Quality Leadership

Price Table with the Pure Competitor

Name of the Company Price Of the Juice


Nestle Juice Rs. 18/-
Shezan Twist Juice Rs. 15/-
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

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 The labor cost is low in Pakistan as compare to the others

 The advertisement is increasing the cost price of it but this is necessary

 Due to increase in taxes the price of them is also increased

 They are using tetra packing which increase their cost

Differential Advantages the Company Have

 The name of the Company

 Very Large capital in whole company

 The good reputation in the market

 The combination of Flavors

 Foreign technology , they are using

 One of the oldest company in private sector

 They have their own plant of tetra packing

PLACEMENT
The distribution network includes the distributor then the wholesaler and in the
end the retailer. Again benefits are provided on the achievement of the sales
targets and timely delivery of products. In some cases products are provided to

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big retailers by the distributor itself but mostly it is being purchased by the
retailer from the wholesaler.

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

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 Some of people who wants to purchases very heavy amount of the


twist juice , they come to the company directly and buy which is
required
 The whole seller are purchasing them for the resale able purpose but
less then the first once
 They have Zonal offices in different areas such as Rawalpindi, Lahore,
Multan e.t.c to make it easy to sell

Distribution Areas

They are distributing in major cities such as:-

City Name Distributors

 Lahore 200

 Karachi 200

 Islamabad 100

Total 500

Place for storage:-

They have the stores to store the juice packets before the juice goes for

distribution

Demand increases

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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

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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

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 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

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Target Fragment

The target fragment for the product s the people using juices
instead of the soft drink like Coke and Pepsi

Budget for Promotion

A. Electric Media 75%

B. Printed media 25%

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Environmental Analysis
1) The Company:-
The people in the company they are not working as a team

2) Suppliers:-
Efficiency of the suppliers in the company is nice but required more
improvement

3) Customers:-
The target market of the product is the teenagers mainly

4) Competitors:-
Nestle is the pure competitors of the Shezan twist juice

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5) Internal environment:-
The internal environment is good but requires more changes

6) Technological :-
They are using the foreign technology which is their plus point

7) Marketing:-
Need to spend money field in marketing field

8) Distributors:-
The distributors are in the Islamabad, Lahore, Karachi but they are
not handling the areas perfectly

BCG Matrices
Shezan twist juice is the star product in the season and when the season is
of this becomes the Cash cow product/

SWOT ANALYSIS (ACCORDING TO THE


COMPANY)

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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

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 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 THE


GROUP)

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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

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 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

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 Discount offered by the competitors

Conclusion

According to our group mates after visiting the company and taking information

from the market we have concluded that:-

 They are going good but have to improve internal environment

 They have to improve their distributor sector.

 They have to make new strategy for the competitors like Nestle

 They have large capital , so they have to spend more money in the

advertising field

 They have to introduce New flavor In the market

 They can introduced these twist juices in 1 Liter packing

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 They can introduce these juices also in powder form.

Recommendations

As we have mentioned that Shezan needs to improve its distribution


strategy. Shezan is targeting youngsters as a potential and big market for its
twist juice so if company supply directly to the schools, colleges and
universities it removes intermediaries and due to high profit ratio café
owners will promote Twist compared to other juices.

Schools
Company Owned
Colleges
Distribution House
Universities

Another important recommendation we want to give is this that Shezan


need to come up with a different kind of packing. Juice packing with straw

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is not convenient for consumer as sometimes juice fell when we insert straw
and sometimes some juice still remain in the pack that cannot come up with
the straw. To resolve this issue Shezan must introduce packing with cap on
it in spite of using straw. Quantity should be increased to 300ml and price
should be Rs. 20/-

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