Internship Report on

FRUITICANA FOODS
Lahore, Pakistan

Wazir Muhammad Anjum

2012-KIUSKD-769

Management Science MBA (Marketing)

Session: 2012-2015

Department of Business Management

Karakoram International University, Skardu Campus
(www.kiu.edu.pk)

Internship Report on

FRUITICANA FOODS
Lahore, Pakistan.

This Internship Report is submitted to the Department of Business

Management in partial fulfillment of the requirement for the degree
of Masters in Business Administration (MBA Marketing).

September, 2015

Department of Business Management

Karakoram International University
Skardu Campus

Internship Report on

FRUITICANA FOODS
Lahore, Pakistan.

Supervisor

Mr. Ibrahim Hussain

Lecturer, K.I.U Skardu Campus
12th September, 2015

Internship Report

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DEDECATION

My humble efforts during the internship

and preparation of this report is dedicated
to my
Loving Parents
Without of their endless support and
sincere prayers this was not possible.

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PREFACE
Student life is a period of preparation for the upcoming future. In this
period one is expected to make all around developments of mental,
moral and physical. Life is a struggle and kind of battle. The internship
is to stuff the brain with all sorts of facts and formulation. Internship
program provides a golden opportunity to the students through
which they can expose themselves to the environment of practical
learning in organizations that enables them to develop and
enhance their capabilities and skills and help lot in the practical life
afterwards.
After ceaseless efforts, it is a matter of great satisfaction for me to
finally see my final internship report in my hands. This report is
collection of our observations, study and experience during our
internship period.

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ACKNOWLEDGEMENT
First of all I would like to thanks almighty ALLAH, whos blessings
helped me to get through this report safely, the one who was
always there when no one was!
Would that I have words to pay tribute to my loving parents and
teachers whose invaluable prays salutary admire and embodying
attitude kept my spirit alive to strive for knowledge and integrity
which enable me to reach milestone.
I would also like to express enormous gratitude to my respectable
teacher and supervisor Mr. Ibrahim Hussain for providing the
direction and supervision, all scope of this project and for helping
me in refining my efforts and ideas.
I also acknowledge the help and pleasant gathering of all my
cousins,

friends

and

fellows

which

really

helped

me

in

accomplishing my report.

(Wazir Muhammad Anjum)

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Contents
DEDECATION ..................................................................................................................................... i
PREFACE ............................................................................................................................................ii
ACKNOWLEDGEMENT ....................................................................................................................... iii
List of Figure, Chart and Table .......................................................................................................... vii
List of Acronym ................................................................................................................................ vii
Executive Summary......................................................................................................................... viii
Chapter 01 .........................................................................................................................................1
OVERVIEW OF THE ORGANIZATION ....................................................................................................1
1.1 Brief History ........................................................................................................................................ 1
1.2 Introduction ........................................................................................................................................ 1
1.3 Organizations Policies ........................................................................................................................ 3
1.4 Major Competitors .............................................................................................................................. 3
Chapter 02 .........................................................................................................................................5
ORGANIZATIONAL STRUCTURE ...........................................................................................................5
2.1 Organization Hierarchy Chart ............................................................................................................. 5
2.2 Number of Employees ........................................................................................................................ 6
2.3 Main Offices ........................................................................................................................................ 6
2.4 Introduction of all Departments ......................................................................................................... 6
2.4.1 Finance Department .................................................................................................................... 6
2.4.2 Human Resource Department ..................................................................................................... 7
2.4.3 Business Development Department ............................................................................................ 7
2.4.4 Procurement Department............................................................................................................ 8
2.4.5 Marketing and Sales Department ................................................................................................ 8
Chapter 03 ....................................................................................................................................... 10
STRUCTURE OF THE MARKETING DEPARTMENT ................................................................................ 10
3.1 Department Hierarchy Chart ............................................................................................................ 10
3.2 No. Of Employees in the Department ............................................................................................... 11
Chapter 04 ....................................................................................................................................... 12
MARKETING OPERATIONS ................................................................................................................ 12
4.1 Customer Demand ............................................................................................................................ 12

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4.2 Market Trends ................................................................................................................................... 13

4.3 Competition Movement ................................................................................................................... 13
4.4 Quality Assurance Process ................................................................................................................ 14
Chapter 05 ....................................................................................................................................... 15
FUNCTIONS OF THE MARKETING DEPARTMENT ................................................................................ 15
5.1 Marketing Strategy ........................................................................................................................... 15
5.2 Product strategy................................................................................................................................ 16
5.3 Pricing Strategy ................................................................................................................................. 16
5.4 Distribution Strategy ......................................................................................................................... 16
5.5 Channel of distribution of Fruiticana Foods...................................................................................... 17
Chapter 06 ....................................................................................................................................... 18
CRITICAL ANALYSIS .......................................................................................................................... 18
Chapter 07 ....................................................................................................................................... 20
INTERNSHIP PROGRAM .................................................................................................................... 20
Chapter 08 ....................................................................................................................................... 21
TRAINING PROGRAM ....................................................................................................................... 21
8.1 Project ............................................................................................................................................... 21
8.1.1 Where do Fruiticana stands today in market against competition? Detailed evaluation of
prices, quality, positioning and also give your valuable suggestions on these points. ...................... 22
8.1.2 What we are doing good and what are area for improvement? ............................................... 25
8.1.3 How can we double increase our sales in next one year time? Give recommendations. ......... 26
Chapter 09 ....................................................................................................................................... 27
CRITICAL ANALYSIS .......................................................................................................................... 27
Chapter 10 ....................................................................................................................................... 29
SWOT ANALYSIS............................................................................................................................... 29
10.1 Strength........................................................................................................................................... 29
10.2 Weaknesses .................................................................................................................................... 30
10.3 Opportunities .................................................................................................................................. 30
10.4 Threats ............................................................................................................................................ 31
Chapter 11 ....................................................................................................................................... 32
FINDINGS......................................................................................................................................... 32
Chapter 12 ....................................................................................................................................... 33

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RECOMMENDATIONS ....................................................................................................................... 33
Chapter 13 ....................................................................................................................................... 34
CONCLUSION ................................................................................................................................... 34
References....................................................................................................................................... 35

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List of Figure, Chart and Table

Figure 1 Introduction .................................................................................................................................... 2
Figure 2 Finance Department ....................................................................................................................... 6
Figure 3 H.R Department .............................................................................................................................. 7
Figure 4 Business Development Dept ........................................................................................................... 7
Figure 5 Procurement Dept .......................................................................................................................... 8
Figure 6 Marketing & Sales Dept .................................................................................................................. 8
Figure 7 No. of Employees .......................................................................................................................... 11
Figure 8 Customer Demand ........................................................................................................................ 12
Figure 9 Market Trend ................................................................................................................................ 13
Figure 10 Competition Movement.............................................................................................................. 13
Figure 11 Strengths ..................................................................................................................................... 29
Figure 12 Weaknesses................................................................................................................................. 30
Figure 13 Opportunities .............................................................................................................................. 30
Figure 14 Threats ........................................................................................................................................ 31
Chart 1 Hierarchy Chart ................................................................................................................................ 5
Chart 2 Marketing Dept Hierarchy .............................................................................................................. 10
Chart 3 Channel of Distribution .................................................................................................................. 17
Table 1 Competitive Analysis ...................................................................................................................... 19

List of Acronym
CEO

Chief Executive Officer

R.S.M

Regional Sales Manager

A.S.M

Area Sales Manager

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Executive Summary
One of the most important aspects of having an internship is to get a clear
picture of how people really work with the fields that we study. Internship is all
about getting some practical knowledge, to complete and sometimes contrast
all of the theoretical comprehension that we have accumulated during our
years of studying. In my experience, an internship can give some very useful
experiences and work as a preparation for future professional life. I got place for
my internship at Fruiticana foods. My internship program was started from 30 th
March 2015 and ends on 31st May 2015. In these two months I was given
different tasks. I spent almost one month in Carton pack factory where I
supervise the production of Carton pack, Batch testing, Packing process,
Handling dispatches, Raw material demand process and Stock taking while the
rest of the days I spent in market from where I got information to complete my
task of Market research on current status and provide strategies for future
growth.
Fruiticana foods is a food and beverage company and has always been
dedicated to the health and interests of customers and to this end, keeps
introducing delicious and healthy food and beverage products. The products of
Fruiticana foods are Fruiticana juices, Fruiticana sachet pack and Fruiticana
pulp. Fruiticana Foods was established in 2009, having a small manufacturing
unit of pet bottle juices and Head Office in Lahore. The CEO and the owner of
this venture is Syed Montazer Mehdi. Fruiticana is available in Pet bottle (250, 500
and 1000 ml) and in Carton Pack (250 and 200 ml). Fruiticana is available in 10
different flavors. The flavors of Fruiticana juices are Orange, Apple, Red Grapes,
Lychee, Peach, Pineapple, Mango, Lemon, Pomegranate, and Guava. The
major competitors of Fruiticana are Fruitine, Maza, Vivo, Fresher, Shezan,
Country, Tops, Slice, and Fruita Vital. The customer demand for Fruiticana is
good enough. The organization some time fails to fulfill the demand on time

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because of the huge demand and low capacity of production. The trend of
using packaged fruit juices in Pakistan is getting famous day by day, because of
the change in life style, massive migration from rural to urban areas and
population growth etc.
The marketing strategy of Fruiticana Foods was developed to position its
products in the mind of customers by providing high quality products in
reasonable price and by distributing the product on a mass level to maximize its
profit. Fruiticana is offering good products in marginally low price as compare to
the competitors; therefore they are getting fame in market. Fruiticana is far
away from their competitors in promotional activities. They didnt promote their
products but because of their strong and active sales force they are successful
to grasp the attention of the customers which leads to increase in the sales
volume of the company. Distribution strategy is the key element of every
marketing strategy because it will helps the organization expand its reach and
grow sales. The distribution channel of Fruiticana foods is simple because they
sell their products to the registered distributors and the distributors are
responsible to sell them in market. Company gets free when the products sell to
the distributors.
The market analysis and the sales of last 04 years shows that there is a
continuous increase in sales and demand of the products, which shows that the
products are good and marketing strategy is leading the organization towards
right direction. People are unaware about the brand but still the sale of
company is satisfactory and this is because of the highly motivated sales team
which is working in market to enhance the revenue of the organization. If
Fruiticana foods adapt intensive strategies like market development and market
penetration they can easily capture a huge market share in no time.

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Chapter 01
OVERVIEW OF THE ORGANIZATION
1.1 Brief History
Fruiticana Foods is a private venture. It is a food and beverage company and
has always been dedicated to the health and interests of customers and to this
end, keeps introducing delicious and healthy food and beverage products. The
products of Fruiticana foods are Fruiticana juices, Fruiticana sachet pack and
Fruiticana pulp. Fruiticana Foods was established in 2009, having a small
manufacturing unit of pet bottle juices and Head Office in Lahore. The CEO and
the owner of this venture is Syed Montazer Mehdi. He did his MBA (Marketing) in
1993 and starts his professional life. After spending his 16 golden years in different
organizations at different designations he started his own business and named it
as Fruiticana Foods. Fruiticana Foods organizational culture is built on 5 main
pillars i.e. Innovation, Quality, Service, Trust and Humility. Since last 6 years they
are striving to uphold these organizational values. These values have been
detrimental in the quick and sustainable success of Fruiticana Foods core brand
FRUITICANA JUICES. Fruiticana is available in Pet bottle (250, 500 and 1000 ml)
and in Carton Pack (250 and 200 ml). Fruiticana is a brand which customer
intent to buy, due to its attractive outer packaging and unmatchable taste. The
value for money which this brand carries has helped it gain a vast popularity in a
very short span of time. Today FRUITICANA is considered to be a cherished
juice brand wherever it is present in the world. Along with having its presence in
150 cities of Pakistan, it is now available in 10 European countries. (Fruiticana
Foods, 2015)

1.2 Introduction
FRUITICANA is a brand name of Fruiticana Foods. Fruiticana starts its journey
with only two flavors in pet bottle and with a small team and nowadays there
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are 10 flavors of Fruiticana juice. In the very next year it got a great response
from local market because of the great quality and reasonable price. They
introduced these flavors due to consumer variations not only in taste, rather also
in the lifestyle, the flavors of Fruiticana juices are:

Orange

Apple

Red Grapes

Lychee

Peach

Pineapple

Mango

Lemon

Pomegranate, and

Guava
Figure 1 Introduction

Fruiticana Foods is headed by a team of seasoned professionals from all walks of

business like Finance, Manufacturing, Sales & Marketing, Human Resource and
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Product Development. Since its commencement, Fruiticana Foods success has

been associated with product improvement, innovation and consumer
oriented. They have penetrated in the local Juice market and have extended
their arms in the export markets significantly. Companys priority is to bring the
best and most relevant products to people, whoever they are, whatever their
wants, throughout their lives, therefore Fruiticana is growing day by day and
they are continuously working to maintain its position in the market.

1.3 Organizations Policies

The basic policy of the organization is to provide quality products and do not
compromise on quality of the product. Other policies of Fruiticana Foods are:

Procurement policy

Recruitment and selection policy

Equal opportunity policy

Capability and performance policy

Performance appraisal procedure and policy

Claiming expenses policy

Quality control, and

Dignity at work like Harassment and Bullying policy.

All the employees are strictly following the organizations policies. The CEO and
Managing Director Sales and Marketing ensure the implementation of the
policies and takes quick action where needed.

1.4 Major Competitors

Juice and beverages industry is extremely competitive. The companies have to
compete against local, regional and global manufactures on various factors
including quality, price, variety, availability and distribution. The major
competitors of Fruiticana are:

Fruitine

Maza

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Vivo

Fresher

Shezan

Country

Tops

Slice, and

Fruita Vital

2015

Some of these juices are very good in quality and some are famous in market
because of their reasonable price. The distributions of some brands are
awesome and some brands have a range of variety. Fruiticana is a quality
brand having a large variety of flavors in competitive price; its distribution is also
good but still needs to improve its reach to the untapped areas. Competitors
are spending a handsome amount of sales on their promotional activities while
Fruiticana is not doing anything for promotion, neither a single advertisement is
on aired till yet and nor a single advertisement published in any newspaper or
magazine. Just a single poster cannot aware and stimulate people. People are
unaware about the brand but still the sale of company is satisfactory and this is
because of the highly motivated sales team which is working in market to
enhance the revenue of the organization.

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Chapter 02
ORGANIZATIONAL STRUCTURE
2.1 Organization Hierarchy Chart
Chart 1 Hierarchy Chart

C.E.O

Finance
Manager

Business
Dev Manager
H.R
Manager

General
Manager Sales
& Marketing

Director
Procurement

Office
Assistant

R.S.M
Production
Manager
Carton Pack

Factory Staff

Production
Manager Pet
Bottle

A.S.M

A.S.M

R.S.M

A.S.M

A.S.M

A.S.M

Sales Teams of Different Region

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2.2 Number of Employees

There are 60 employees working in Fruiticana Foods other than factory staff. In
both production units there are numbers of employees working on daily wages
thats why they are not included in Fruiticana Foods permanent employees.
Organization strongly follows the government policies for the betterment of the
employees and workers.

2.3 Main Offices

Fruiticana Foods has two main offices, first one is the head office located at
Multan Road Lahore and the other one is regional office located at G-8 Markaz
Islamabad. There are two production units and two sub offices in both factories.

2.4 Introduction of all Departments

There are five main departments and employees are divided in these five
heads, which are, Finance department, Human resource department, Business
development department, Procurement department and Marketing and Sales
department. Every department works in their premises and takes minor decisions
according to their own jurisdictions. Every head of department is directly
reported to the CEO.

2.4.1 Finance Department

Finance

is

the

back

Figure 2 Finance Department

bone

of

any

organization. Finance Manager handles the

finance

department.

Apart

from

basic

record keeping he is responsible to provide

information to assisting the managers to take
strategic decisions, further more he is solely
responsible for all day to day accounting
transactions,

financial

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records,

cash

receipts

and

payments,

salaries

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disbursement, raw material purchases and imports and deals with all the
financial documents during export. He also manages the organizations cash
flow and ensures the availability of funds to meet the daily payments. This
department also works with the managers in preparation of organizational
budget and forecast, and to report about the outcomes throughout the year.

2.4.2 Human Resource Department

Figure 3 H.R Department

Human resource is the king of all resources,

because it utilizes all other resources of the
organization. It is one of the most valuable
resources of every organization. The efficient
human

resource

department

will

surely

provide the organization with the capability

and structure to meet with the organizations
goals and objectives by managing its human
resource. Human resource manager is responsible for selection and recruitment
of right person for the right job at right time. He ensures the timely availability
and also checks their attendance etc. Human resource department also
responsible for the position arrangement, grading and performance appraisal
review at the end of every fiscal year. Office assistant and HR manager at the
end of the month compile all attendances and salary deductions where
needed and forward to finance manager and finance manager disburse the
said amount to their respective accounts.

2.4.3 Business Development Department

Business

Development

Managers

Figure 4 Business Development Dept

key

responsibility is based on research by utilizing

media, study of different business reports;
identifying market trends, market potentiality

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and new opportunities. He is responsible for making new business relationship

with prospects and also retains the existing customers. Business development
manager prepares policies to develop the business by increasing exports to new
countries. Both production managers are responsible to provide business
development manager details about the production so that he takes orders
from international market.

2.4.4 Procurement Department

Figure 5 Procurement Dept

Director procurement is responsible for

purchases of raw materials for production
from the right place at right time and on
right price. After purchase the timely
delivery to the concern department is
also his duty. Production managers send
the list of raw materials needed to director procurement and the director
procurement made purchases against the orders. He ensures the best quality
raw material and also keeps in mind the price of raw materials so that they can
control over the cost of the products.

2.4.5 Marketing and Sales Department

Figure 6 Marketing & Sales Dept

Managing director sales and marketing is

doing

lots

of

tasks;

he

handles

all

marketing activities including production,

pricing, promotion and placement. He is
the

front

face

of

organization.

The

managing director sales and marketing is

responsible to identify the need, want and
demand of the customer and to identify
the market trend and the current market position of the organization. He takes a

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deep look on the competitors and takes timely decision to compete in the
market. The Managing director sales and marketing communicates with all
members of the organization to find out the best way to achieve organizations
goals and objectives. He also handles the Research and Development
department and continuously working to bring innovative products in market.
After CEO, Managing Director sales and marketing is the key person in the
organization. He takes timely decisions where needed.
The organization structure of Fruiticana foods is straight and simple. Everyone is
cleared about his jurisdictions, duties and responsibilities. Decision makings are
made in democratic way and top level management appreciate everyone on
providing their ideas during decision making.

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Chapter 03
STRUCTURE OF THE MARKETING DEPARTMENT
3.1 Department Hierarchy Chart
Chart 2 Marketing Dept Hierarchy

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3.2 No. Of Employees in the Department

Figure 7 No. of Employees

As we know that marketing and sales

department is the revenue generation
department, so companies give special
emphasis on this department. If marketing
and sales department works correctly than
the organization will surely earn profit and
achieves its goals and objectives. There are
52 employees working under the Managing
Director Sales and Marketing. They are categorized in different heads. The goal
of every head is same, to generate sales and increase the profit of the
organization. There are 02 Regional Manager, 05 Area Manager, 40 Sales
Officers and 05 Sales men. Regional managers are responsible to enhance sales
in their region in coordination with area managers. Regional managers directly
report to the Managing director Sales and Marketing. Every area manager
reports to regional manager while sales officers and sales men are responsible to
report their area managers.

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Chapter 04
MARKETING OPERATIONS
4.1 Customer Demand

Figure 8 Customer Demand

The customer demand for Fruiticana is good

enough. The organization some time fails to
fulfill the demand on time because of the
huge

demand

and

low

capacity

of

production. The response from domestic and

international market is good for Fruiticana. As
Fruiticana is involve in Business to Business
transactions, so the main customers of Fruiticana are the whole sellers and
distributors, but the main focus is on the end consumers. Every organization
develops products for the end users so they research on end users taste,
choice, trend, and their purchase behavior. Demand for Fruiticana is high
because they continuously working on consumers response and their behavior.
Customer demand for Fruiticana is increasing day by day. The annual sale of
Fruiticana in 2013 was Rs. 598,538,000 which increases in 2014 up to Rs.
910,796,000, which shows a rapid increase of 35% in customers demand. CEO
and other staffs are optimistic about 2015 sale as well. CEO said that, Although
the demand in month of March was not as high as it was in 2014 but the sale of
April and May was too high, so we are optimistic regarding our sale and hope
for the best.

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4.2 Market Trends

Figure 9 Market Trend

The trend of using packaged fruit juices in Pakistan

is getting famous day by day, because of the
change in life style, massive migration from rural to
urban areas and population growth etc. Before
few

year

people

were

fresh juices prepared

at

used
home

to
but

consume
as

we

mentioned earlier that because of change in life

style

they

started

to

move

towards

packaged juice. The other reasons of growing market trend are; opening of new
hotels, restaurants and hospitals, where these juices are marketed successfully,
further more the rapid growth in fruit market is because of the removal of
custom and excise duty on fruit juices which also increased their export. The
export of fruit juices increased from 24.41 tons worth Rs. 15.58 billion in the era of
2009-10 to 50.45 million tons worth Rs. 3.65 billion in the period of 2011-12 and it
continues increasing with every passing day. (Aaj News, 2013)

4.3 Competition Movement

Figure 10 Competition Movement

The major competitors of Fruiticana

are Fruitine, Maza, Vivo, Fresher,
Shezan, Country, Tops, Slice, and
Fruita Vital. Some of these juices are
very good in quality and some are
famous in market because of their
reasonable price. There is an intense
competition among all but Nestle
and Shezan are the market leaders
in Pakistan, both of them captured a

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huge share of local market. The companies have to compete against global,
regional and local manufactures on various factors including price, quality,
variety, availability and distribution. Mostly people attract on these two elements
price and quality, and if the company focuses on both dimensions than people
will surely attract towards them. There is an intense competition in promotion as
well but in promotion Fruiticana is far away from its competitors, because the
competitors are spending a handsome amount of their sales on promotion while
Fruiticana is not doing any promotion and this is the reason because of which
people are unaware about the brand, its high quality and price etc. Other
companies are competing with each other in promotion, and at the end
promotion is the main element which aware customers and prospects and
stimulates them to purchase their products. Fruiticana needs to move with its
competitors and should spend some amount in promotion sector.

4.4 Quality Assurance Process

Fruiticana gives emphasis on its quality and dont compromise on it. There is
Quality assurance checkup after every purchase of raw material, during
manufacturing and after production batch testing, if they found any error and
quality issue than they return the raw materials immediately, and if they found
any quality issue after production then immediate dispose of the whole batch,
so that only best quality products are marketed in the market. This emphasis on
quality includes them in the top raked juices in the market.

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Chapter 05
FUNCTIONS OF THE MARKETING DEPARTMENT
5.1 Marketing Strategy
The marketing strategy of Fruiticana Foods was developed to position its
products in the mind of customers by providing high quality products in
reasonable price and by distributing the product on a mass level to maximize its
profit. After segmentation on geographical and demographical basis, Fruiticana
is currently targeting all age of customers of Punjab, Khyber-Pakhtunkhwa and
Gilgit-Baltistan. They are offering a good product in marginally low price as
compare to the competitors; therefore they are getting fame in market.
Fruiticana is far away from their competitors in promotional activities. They didnt
promote their products but because of their strong and active sales force they
are successful to grasp the attention of the customers which leads to increase in
the sales volume of the company. Distribution strategy is the key element of
every marketing strategy because it will helps the organization expand its reach
and grow sales. Distribution channel also helps in communication from
organization to end user and from end user to organization. Organization can
get information about the changing behavior of the consumer; their taste and
willingness; by utilizing all these information company takes decisions regarding
product quality, features and price etc. The distribution channel of Fruiticana
foods is simple because they sell their products to the registered distributor and
the distributors are responsible to sell them in market. Company gets free when
the products sell to the distributors. There are seven distributors in Lahore and
every distributor has given targets which they have to meet by utilizing their sales
force. Distributor can earn more profit by selling more products of Fruiticana so
they work hard to earn maximum profit. Fruiticana also give incentives on target
completion which motivates the distributors to work efficiently.

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5.2 Product strategy

Product strategy consists of product planning, development and management.
The management worked hard to develop quality product, they have their
special formula because of which they are succeed to introduce tasty and
healthy juice. Currently Fruiticana is selling 10 flavors of fruit juice, which shows
the managements commitment with the customers. They have introduced
these flavors according to the demand and changing taste of the customers.
High quality assurance is their priority and for that they purchase high quality raw
material and quality control through lab testing before and after production. To
facilitate customers Fruiticana produce products in different sizes like in Pet
bottle there are 03 sizes available in market they are; 250 ml, 500 ml and 1000 ml
while in Carton pack juice there are 02 sizes available in market they are 200 ml
and 250 ml.

5.3 Pricing Strategy

Pricing strategy plays very important role to acquire market share where giant
competitors are already working and moving ahead. Price of the product is one
of the main elements of marketing mix. Companies often compete in the
market on prices of their products. Fruiticana is currently using the cost base
strategy, and they are charging a very nominal additional amount on their cost.
Fruiticana believes that the moderate price for a good quality product helps
them to attract more customer, as many of our customers are price conscious.
They are working to reduce their variable cost, so that they can earn more profit
without raising the price of product.

5.4 Distribution Strategy

To assure the availability of the product in market Fruiticana established an
effective channel of distribution. The distribution channel of Fruiticana foods is
simple because they sell their products to the registered distributors and the

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distributors are responsible to sell them in market. Company gets free when the
products sell to the distributors. These distributors purchase Fruiticana juice in bulk
amount and then sell them in the market by utilizing their sales force. There are
seven distributors in Lahore and every distributor has given targets which they
have to meet by utilizing their sales force. Every distributor has 4 to 5 sales officers
which visits the markets on daily basis and meets with the retailers. The sales
representatives are hired by the distributor itself but two of them are paid by the
organization and rest of the sales representatives are paid by the distributors
themselves. Distributor and sales representatives get incentives on target
completion. We can say that Fruiticana is entering in the market with traditional
channel of distribution. The distribution channel starts from the company and
ends on final consumers. The distribution channel plays the role of bridge
between consumer and organization, they can get information about the
consumers taste, want, behavior, market trend and consumers complains about
different products, so making a good relationship with distributors and retailers
are always in benefit of the organization. It will help to reduce research cost as
well.

5.5 Channel of distribution of Fruiticana Foods

Chart 3 Channel of Distribution

Producer
Distributor/Whole seller

Retailer

Consumer
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Chapter 06
CRITICAL ANALYSIS
The market analysis and the sales of last 04 years shows that there is a
continuous increase in sales and demand of the products, which shows that the
products are good and marketing strategy is leading the organization towards
right direction. The beverage industry is growing year by year, which is an
opportunity for the organization. The market trend is changing from home made
juices towards packaged juices, and the total sales volume of packaged juices
in both domestic and international market is increasing. In last 04 years they are
succeed to capture new domestic and international market as well.
In August 2012 Fruiticana Foods faced a problem in its Mango (250 ml) carton
pack juice, which were used too blown after few days of distribution but the
quick response from the marketing heads solve that issue, the issue was raised
because of the little change in previous formula. Fruiticana officials disposed all
the defected batches efficiently and delivered new products to the market. In
May 2014, Fruiticana Foods were reported from 3 distributors of Lahore that the
color of Guava (250 ml) pet bottle juices change after few days of delivery.
Fruiticana officials along with the lab team reached those areas where the
problem was raised. They have found that the problem was only in the same
batch products and after a thorough study they concluded it that, juices need
at least 72 hours to set well, those products were delivered immediately after its
production that is why they had to face that issue, later on all the distributors
were delivered new products.
The major competitors of Fruiticana are Fruitine, Maza, Vivo, Shezan, Fresher,
Country, Tops, Slice and Fruita Vital. Some of these juices are very good in
quality and some are famous in market because of their reasonable price.
Fruiticana is competing with them in both quality and price, so need to maintain
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its quality and sustain its price so that they captured a huge market share and a
strong position against its competitors. Fruiticana foods is going to construct two
new factories in Lahore so that they can increase their production level and
capture more domestic and international market share.
Table 1 Competitive Analysis

Brand Name

Quality

Reach

Distribution

Promotion

Best

Better

Best

Excellent

Better

Best

Good

Best

Best

Good

Best

Fair

Fruitine

Good

Better

Good

Good

Tops

Good

Better

Better

Good

Vivo

Good

Good

Better

Better

Fresher

Good

Good

Fair

Better

Slice

Best

Better

Better

Best

Maza

Better

Good

Better

Better

Country

Good

Fair

Good

Good

Nestle

Fruita

Vital
Shezan
Fruiticana

Fair

, Good

, Better

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, Best

, Excellent

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Chapter 07
INTERNSHIP PROGRAM
My internship program was started from 30th March 2015 and ends on 31st May
2015. In these two months I was given different tasks. I spent almost one month in
Carton pack factory where I supervise the production of Carton pack, Batch
testing, Packing process, Handling dispatches, Raw material demand process
and Stock taking while the rest of the days I spent in market from where I got
information to complete my task of Market research on current status and
provide strategies for future growth.
The carton pack factory is not owned by Fruiticana foods they are producing
juices in this factory by purchasing production hours from the factory owner. This
factory is owned by Amrus Foods. In this Factory 15 different companies
produce their products. Every company has their offices in the premises of the
factory. 50 workers worked in this factory in two shifts on daily wages and the
wages are paid them by factory owners while the producing companies paid
the factory owners on hourly basis. There is a proper system of stock taking and
factory provides space for the companies to store their finished goods until they
have dispatched. The owner of the factory provides the companies proper
place to stock their goods as well as their raw materials. The factory is equipped
with modern technology and the factory owners take good care of cleanliness
of the factory. At the end of every day factory owners check their record and
tally them with the stock which makes the producing companys feeling secure.
The factory follows the rules and laws given by government of Pakistan like the
minimum wage rate, no underage worker, and proper system for female
workers etc.

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Chapter 08
TRAINING PROGRAM
As my specialization is in Marketing so my concern department was marketing. I
worked with production and marketing team. Company provides training to
every new hired employee by their seniors and experienced members. As job
training is very important for productivity and motivation. Training programs
expand the knowledge of employees regarding his job. Trained employees are
able to better perform their jobs. The Fruiticana Foods is concern about training.
I saw that the new sales officers are attached with the experienced employees
for two weeks; during these two weeks they get a detail orientation about the
organization, their products, hierarchy, co-workers and also observe how to deal
with the retailers and how to convince new retailers etc. After these two weeks
of training they start their work and visit the markets individually.

8.1 Project
I was thinking that my internship will be based on observational knowledge and
learning, while the reality was extremely changed. They started my internship
with orientation sessions, and every department provided me ample information
about their works, roles and responsibilities. After the detailed orientation of the
departments they attached me with the production manager of carton pack
juices Mr. Ahsan Jamal. He takes an orientation session and introduced me to his
workers and office staff. He told me visit the factory daily. He shows me the
production process of juices and told me everything about the production,
before and after production testing, raw materials used, formula of the product,
dispatching process, import documents and the process of raw material imports
etc. After spending few days as observer in factory he told me to handle the
production just to test my knowledge about the production and raw materials
usage. I took that challenge and produced 5 batches of juice, I also did the

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before and after production batch test and the results were accurate. After that
day he gave me charge to handle all the matters of production. After spending
one month in production factory the CEO gave me a project consists of three
questions, questions were;

8.1.1

Where

do

Fruiticana

stands

today

in

market

against

competition? Detailed evaluation of prices, quality, positioning and

also give your valuable suggestions on these points.
Fruiticana Juice is the core brand of Fruiticana Foods. To know the current status
of Fruiticana in market I conducted market research in which I met with
distributors, retailers, sales team and end consumers of Fruiticana as well as the
general public. Research was mainly based on observation, in which I tried to
observe the consumer behavior and purchase pattern of consumer. I also took
informal interviews from the distributors and retailers, and conduct group
discussions with sales team to know about the problems they are facing in
market.
The task given to me by the officials of Fruiticana Foods was to find out the
current position of Fruiticana in the competitive market where numbers of
beverage companies are there and trying to capture maximum market share.
The core benefit of Fruiticana and other beverages are to satisfy the need of
thirst and provide refreshment especially in hot summer season. The culture plays
a major role in making consumer want because of culture, geographic area
and demographic factors, the want of people are different like some consumers
prefer water and soft drinks to satisfy their needs of thirst and some others prefer
juices. The category which prefers juices can also be divided into more sections
according to their purchasing power. In market I had to see both price wise
competitor and quality wise, because Fruiticana is a good quality product in
reasonable price.
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If we take a look of companys revenue than it is clear that the organization is

growing year by year and its sale is increasing both domestically and
internationally but the market share is still very low, because the beverage
industry is a big industry and to capture a reasonable market share Fruiticana
Foods needs time and struggle.
Fruiticana is in between introduction and growth stage where it is trying to
capture as much market share as they can. They are spreading their business all
over the Pakistan by utilizing their strong sales team. The sales team of Fruiticana
is strong enough to maximize the market share. As I mentioned earlier that
Fruiticana is a high quality juice and in quality it is competing Nestle and Shezan
juices. In many stores the retailers said that they have switched from Nestle and
Shezan to Fruiticana because it is as good as Nestle & Shezan and people can
enjoy good juice in reasonable price. Price of this product is average like not too
much low and not too much high. There is space for the company that they can
increase the price but for that they need to make a good image in consumers
mind, need to increase the brand knowledge and awareness, they need to
focus on promotional activities so that consumer can easily recognize the brand
and the demand of Fruiticana increase from the current level. Fruiticana is not
working on positioning, what I take positioning is, to increase the value of brand
in the mind of consumers, for that purpose organization need to focus on
marketing mix and the most important element of marketing mix which is
promotion.
I observe that behavior of consumer against Fruiticana is impulse buying
behavior, which means they are not too much aware about the product but
purchasing it because of its availability to satisfy their need. Only one poster
cannot motivate people towards the product, if you really want that people
know your product, purchase it and become a loyal customer than you should

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do work on positioning strategies. The strategies of positioning are, Product

Strategy, Pricing Strategy, Promotion Strategy and Placement Strategy.
Product Strategy: Fruiticana need to work on it because product is the core
thing. Fruiticana is already good in quality, they need to maintain it and ensure
its timely availability in the market also continuous effort on innovation in
products like introduce new flavors, different size of product etc. There is also
need to focus on production capacity because the product must be produced
enough to fulfill the demand of market, and if any problem arise in the product
timely action should be taken by the organization to increase its goodwill in the
market. There must be a proper system of quality control which ensures the
quality.
Pricing Strategy: Fruiticana is currently following the cost based pricing where
they charge a nominal amount after fulfilling their cost. The extra amount
charged by them is lower than competitors products. Fruiticana is working on
reducing their cost so that they can gain much profit. I think they should
continue the same because lots of customers are price conscious and they
prefer to buy such things which are good in quality and available in reasonable
price.
Promotion Strategy: Fruiticana is not doing anything on promotion. There is only
one type of poster and I saw that posters are also missing from points and shops
where the product is available. The negative impact of zero promotion is that,
people are unaware about Fruiticana and many of the buyers buy Fruiticana
because of availability and suggestion of the retailer. If the organization want to
maintain a good image in consumers mind and to increase its sales volume than
they should promote their product and the best medium is T.V because T.V ads
are consists of both audio and video, which can attract more consumers and
the impact of Television ads are greater than other electronic mediums. Prime
time ads are costly but most effective one.
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Placement Strategy: Placement strategy is also very important in positioning

strategy because the organization has to decide that through which channel
they are going to deliver their valuable goods in the market. The distribution
channel of Fruiticana foods is simple because they sell their products to the
distributors. There are seven distributors in Lahore and every distributor has given
targets which they have to meet by utilizing their sales force. Every distributor has
4 to 5 sales officers which visits the markets on daily basis and meets with the
retailers. The sales representatives are hired by the distributor itself but two of
them are paid by the organization and rest of the sales representatives are paid
by the distributors themselves. Distributor and sales representatives get incentives
on target completion. To maintain good relationship with these distributors
organization should conduct monthly meetings with them and also give them
some extra incentives in shape of lucky draw of most productive distributors etc
which will create a competition among them and ultimately the sale of
organization increase.

8.1.2 What we are doing good and what are area for improvement?
Fruiticana is good in quality and its price is also good enough. Fruiticana is a
quality brand in reasonable price and follows the cost leadership strategy which
leads them towards success. They need to increase its production volume and
also work on its marketing strategy especially on promotion and spreading
awareness among general public the information about its brand. They need to
work on making good relationship with their distributors and retailers. They need
to understand the retailer power and give them value so that they will fairly
display Fruiticana brand.

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8.1.3 How can we double increase our sales in next one year time?
Give recommendations.

First of all Fruiticana needs to increase its production capacity and volume
because I observed that many of the orders remain pending for many
days because of empty stock. This will affect the companys goodwill.

Secondly Fruiticana is not doing anything in promotion side, they need to

think and make some good promotion campaigns. They need to
advertise their products so that people get aware about the product and
its price.

They should work on gaining and retaining relationship with their

distributors and retailers.

They need to induct some new sale points from where people can
purchase Fruiticana juices.

Fruiticana officials need to target some new areas because two provinces
of Pakistan is still untapped by Fruiticana.

They should adapt intensive strategies which are Market Penetration and
Market Development. Via Market Penetration they can increase market
share in current market through greater marketing efforts and with the
help of Market Development strategy they can target new geographic
areas which are not targeted yet.

Fruiticana can also use integration strategy by which they can gain
ownership or increased control over distributors and retailers.

By working on these points I am sure that Fruiticana can easily double increase
their sales in just one year time period.

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Chapter 09
CRITICAL ANALYSIS
On the period of internship I observed Job Descriptions and found that the
responsibilities of the employees were Multi-tasking. The environment of the
workplace is entirely different from the concepts which I studied in books. So I
found that to survive in the cut-throat competitive era we need to develop
multi-tasking skills along with dynamic personality and strong communication
skills. I spent one month in production factory, I saw that the production
capacity of Fruiticana is not enough because they are producing the products
in a factory by purchasing production hours by the owner of the factory. Mostly
big companies have their own production units but Fruiticana has only a pet
bottle production unit and dont has carton pack production unit, which affects
the cost and also sales of the company because of low production. I saw that
many orders remain pending because of empty stock. Fruiticana needs to take
serious action regarding production capacity of the product, because the
demand is increasing day by day and to meet the market needs they should
increase their production volume.
In theory I read that the production manager handles the production of the
product while in the carton pack factory the production manager was assigned
my jobs like he has to produce the product, test the product in lab, handles the
important financial matters, deals with the bank while importing the raw
material, look after the dispatch process and stock taking. I saw that he used to
come in office at 9 am while his off timing was not 5 pm rather he used to sit for
long and often for whole night. This timing issue is not good for the organization;
they should hire assistant production manager to divide the burden of
production manager so that production manager can give complete focus on
quality of the products.

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Promotion is very important element of marketing mix and there was too much
emphasize on promotion in books but in Fruiticana I saw that they are not doing
anything for promotion like advertisement, signboard, pamphlet, flyer and sales
promotion activities. They are just using their sales force and they are working in
market to make sale of Fruiticana to different retailers in the market. The result of
no promotion is that, customers are unaware about Fruiticana, although the sale
is increasing but the product knowledge in consumers is too much
disappointing.
Mostly big organizations use integration strategy to maximize the profit and to
run the flow of distribution smoothly. Companies maintain good relationship with
distributors and retailers, which helps them to remain up to date with the market
trend and consumers behavior, because the actors of distribution channel plays
a major role in flow of information from consumer to organization. Fruiticana is
not doing so much to maintain good relationship with its distributors and retailers.
I think by keeping in view the importance of retailers power, Fruiticana should
not only maintain a good relation with distributors but also make a relationship
with its retailers, so that they give proper space for Fruiticana products in their
shelves and also refer the products to the customers.

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Chapter 10
SWOT ANALYSIS
10.1 Strength

Figure 11 Strengths

Quality

Company uses the best quality raw material to

develop best quality product, so the quality of the
product is the strength of the company.

Responsiveness

The proactive responsiveness of the business can

have a major impact on companys decision.

Strong Management

Fruiticana has a strong management team, who are able to avail

opportunities.

Cost

The low cost will help the organization to charge low price as well as to gain
more profit.

Price

Competitive and marginally low price of the product is also the strength of
Fruiticana.

Honest and Determined Employees

Fruiticana has honest and determined employees, which are working

continuously to achieve the organizations goals and objectives.

Qualified and Dedicated Sales staff

The Sales staff of the company is qualified, dedicated and trained. They
have experience in the field of marketing.

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Figure 12 Weaknesses

10.2 Weaknesses

Production Capacity

Main weakness of the company is production

capacity. Fruiticana cannot fulfill the demand of
many customers especially in hot summer season
when the demand of product is high.

Product Reach

Fruiticana did not cover all the four provinces of Pakistan till now. It is only
distributing in two provinces Punjab and Khyber Pakhtunkhwa.

Public Awareness

Because of its poor promotion strategy people are unaware about the
product and this is weakness of company.

Figure 13 Opportunities

10.3 Opportunities

Market Trend

The changing market trend from home made fruit

juices to packaged fruit juices is the opportunity
for the organization.

Increase distribution network

Fruiticana has a chance to increase its distribution

network in other cities of Pakistan, which are not targeted yet.

Promotion

Advertisement and promotion can also increase the sales and awareness of
Fruiticana brand in general public.

Population

The increase in population is also an opportunity for Fruiticana.

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10.4 Threats

Figure 14 Threats

Intense competition

Intense competition in juice and beverage

industry is a major threat, because if any of the
competitors offers a good package than a
large number of customer can divert towards
them.

Technological advancement

Technology is getting advance day by day, so this a threat for Fruiticana that
if any of the competitors or new entrant going to use the new technology
than it will surely reduce the cost and also increase the production of the
competitor.

Political instability

The political instability in parent country (Pakistan) can also affect the
business of Fruiticana.

Inflation

Inflation and instability of the Pakistan economy can affect the purchasing
power of the large number of consumers.

Government policies

If the government change its policy regarding juices and beverage industry
and impose taxes than the product cost will increase which tends to increase
in the price of the product.

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Chapter 11
FINDINGS
After spending two months in Fruiticana foods I found some issues in the
companys operation and marketing strategy. If they work to solve these issues
than they will surely get success to increase their sales and profit margin also
market share.

Production Capacity
Production capacity of Fruiticana is low; I observed that many of the
orders remain pending for many days because of empty stock.

Product Awareness
Fruiticana is not doing anything in promotion side, which is why the
product knowledge among public is almost nil.

Relationship
Fruiticana is not taking any prominent steps to maintain good relationship
with its distributors and retailers.

Sales Points
There are only three sales points in Lahore which is very low as compare to
the competitors.

Availability
Product is not available in whole Pakistan.

Strategies
Fruiticana is not using appropriate strategies for growth and market share.

Aware about competitors

Fruiticana is not taking the competitors moves and strategies in to
consideration; in fact in many things company is unaware about its
competitors.

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Chapter 12
RECOMMENDATIONS

Production Capacity
Fruiticana should increase its production capacity of both pet bottle and
carton pack juices.

Product Awareness
They need to think and make some good promotion campaigns. They
need to advertise their products so that people get aware about the
product and its price.

Relationship
Fruiticana foods should work to develop a good relationship with its
distributors, for that purpose they can arrange a monthly or yearly grand
meeting with its distributors.

Sales Points
Fruiticana should induct new sales points in big cities from where
consumers can easily get the products.

Availability
The two main provinces of Pakistan are still not targeted; Fruiticana should
target those areas as well after increasing the production level.

Strategies
Fruiticana foods should adapt intensive strategies which are Market
Penetration and Market Development. Via Market Penetration they can
increase market share in current market through greater marketing efforts
and with the help of Market Development strategy they can target new
geographic areas which are not targeted yet.

Aware about competitors

Fruiticana should also have, keep a hawk eye on their competitors and
their brands, consumers, prices, quality and their marketing or supply way.

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Chapter 13
CONCLUSION
Fruiticana Foods is a private venture. It is a food and beverage company and
has always been dedicated to the health and interests of customers and to this
end, keeps introducing delicious and healthy food and beverage products.
FRUITICANA is a brand name of Fruiticana Foods. Fruiticana starts its journey
with only two flavors in pet bottle and with a small team and nowadays there
are 10 flavors of Fruiticana juice. They introduced these flavors due to consumer
variations not only in taste, rather also in the lifestyle. Juices are available in Pet
bottle (250, 500 and 1000 ml) and in Carton Pack (250 and 200 ml). Fruiticana is
a quality brand having a large variety of flavors in competitive price; its
distribution is also good but still needs to improve its reach to the untapped
areas. Competitors are spending a handsome amount of sales on their
promotional activities while Fruiticana is not doing anything for promotion,
neither a single advertisement is on aired till yet and nor a single advertisement
published in any newspaper or magazine. Just a single poster cannot aware
and stimulate people. People are unaware about the brand but still the sale of
company is satisfactory and this is because of the highly motivated sales team
which is working in market to enhance the revenue of the organization.
Fruiticana is using good quality raw material to develop best quality product. Its
management team is so strong and they are working to reduce the cost of the
product to maintain the price of the product at same level for a long time so
that they get success to retain its customers. The changing market trend from
home made fruit juices to packaged fruit juices is the opportunity for the
organization but the inflation and instability of the Pakistan economy can affect
the purchasing power of the large number of consumers. If Fruiticana foods
adapt intensive strategies like market development and market penetration
they can easily capture a huge market share in no time.

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.

References
Aaj News. (2013, September 10). Retrieved July 03, 2015, from News Channel:
www.aaj.tv
Fruiticana Foods. (2015, February 10). Retrieved May 25, 2015, from Fruiticana Orchard:
http://www.fruiticana.com.pk/
Unpublished documents and reports of Fruiticana foods

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