Professional Documents
Culture Documents
&
Syed Shaharyar Hussain Jaffari
Shahzad Mukhtar Deshmukh
Faiz Shamsi
1
Pricing Plan (Existing Products) with #1 competitor ...............................................................................................33
Channel Plan (Existing Product Plan).......................................................................................................................34
New Products ..............................................................................................................................................................35
French fries Masala .................................................................................................................................................36
Sarson Ka Saag & Tikka Karahi ................................................................................................................................36
Dilpasand Biryani ....................................................................................................................................................36
Product Plan (New Products) ..................................................................................................................................37
Pricing Plan (New Products) ....................................................................................................................................37
Channel Plan (New Products) ..................................................................................................................................38
Sample New Products Promotional Plan .....................................................................................................................39
Brand Positioning: ...................................................................................................................................................40
Brand Awareness: ...................................................................................................................................................40
Phasing: ...................................................................................................................................................................40
Advertising: .............................................................................................................................................................41
Outdoor Advertising (Out Of Home – OOH) : ......................................................................................................41
BTL Activities: ..........................................................................................................................................................41
Brand Activation .................................................................................................................................................41
Consumer Conversion Program ..........................................................................................................................41
Sponsorships: ..........................................................................................................................................................42
Public Relations: ......................................................................................................................................................42
Internet: ..................................................................................................................................................................42
Trade Promotion : ...................................................................................................................................................42
In-Store Branding ....................................................................................................................................................42
Gondola...............................................................................................................................................................43
Carts Advertising .................................................................................................................................................43
Aisle Advertising..................................................................................................................................................43
Off The Shelf Branding and Entrance Advertising ...............................................................................................44
Packaging: ...............................................................................................................................................................44
Budget .....................................................................................................................................................................45
Conclusion ...................................................................................................................................................................46
Bibliography .................................................................................................................................................................48
Annexure A – Questionnaire .......................................................................................................................................49
2
Research
RESEARCH
3
Exploratory Research
For the purpose of reaching to the right options with respect to the customers’ choices we conducted a
focus group research on 8 participants, 6 female and 2 male.
The responses helped us formulate the right choices to put the questions for the respondents of the
quantitative research.
This research was carried out through a questionnaire (Annexure A). Sample included 50 respondents:
45 female and 5 male
Quantitative Research
4
5
For the majority of the respondents convenience is the primary reason why they purchase a mixed
masala recipe. Also according to a Gallup research, an overwhelming number of Pakistanis cannot/do
not eat out frequently, therefore many of them prefer food that can be conveniently cooked; one way is
through mixed masala recipes.
The second most important reason highlighted by the respondents behind their choice to purchase
mixed Masala recipes is taste. Taste is a pre-requisite of a need for acceptability and recognition that a
typical house woman desires when she cooks food for her family.
40% responded that they want to try new recipes and out of them 26% were of the view that branded
Mix Masala recipes provide an important source of new recipes to the populace to experiment.
6
Business Scope
We want to:
Region
Concentrated in Pakistan having a large share in other regions of the world with a large
Pakistani an Indian Diaspora
Plan to expand the consumer market in Far east and Arabia
Where
Needs
Convenience
Budget constraints (as a substitute to eating out)
Focus on family's health, and hygiene & delight the family members
Hygiene constraints
Sense of belonging
Acceptability (by preparing good taste and high quality recipes)
Want to try new foods, Seek excitement in cooking
Added Value
Preserves taste and aroma of the spices at -170 C through cryogenic technology
Widest range of recipes available in the market
7
Business Environment
8
Market Structure
Convenience Seekers:
This segment caters to all those individuals who seek Convenience yet suffers from Budget & Hygiene
constraints as they cannot frequently eat out therefore for them ,cooking is essential
Recognition Seekers:
This segment caters to all those women who have a greater emphasis on driving Satisfaction, Sense of
belonging, Acceptability by preparing good taste and high quality recipes
Experimenters:
This segment represents individuals who prefer trying new foods, Seeking excitement in cooking, &
stimulation from life
The market works similar to a typical FMCG. The companies have their own distributors to cover High
Potential Outlets and use several other small, medium or large distributors to make the products
available throughout the length and breadth of urban Pakistan. Still 70% of the entire business travels
through the wholesalers. As the products have long life, therefore stockings are common.
9
Total Spices Total Spices = 65,000 tons
Unbranded 59,500 tons Branded 5,500 tons
10
Tons Total revenue
Branded and packed 3,850 7.7 billion
Semi/Un-branded Recipes 17,850 20.8 billion
Major Players
Shan
National
Mehran Foods
Minor Players
Habib Foods
Naseem Masala
Kitchen Secrets (Rivaayat)
Taseer
Nice Foods etc.
11
Market Growth Trends
• In 2008, a survey found that 44% of citizens
across 15 countries (including Pakistan) feel that
it is difficult to manage their daily obligations and
find time to relax
• Our culture & taste is still considered a pivotal part of our society.
• Attitude towards trial of new things rose from 10% to 15% in the last 10
12
SKU Growth Trends
The future of Recipe Mixes is in sachets and Double Packs (Economy packs) as impoverished
consumers are moving towards the more economical sachets and the SEC A consumers are now
moving towards Double Packs as they add more value to their buying
Single Packs-50gms are at Stagnancy. And they are expected to decline over the years
13
Product Lifecycle
The convenience trend symbolizes the increased time pressures, stresses and work-life balance
problems that consumers are increasingly experiencing.
Time scarcity, meal fragmentation, and the erosion of cooking skills are stimulating the demand for
more convenientfood options. Working longer hours and lack of cooking skills increase the
attractiveness of this segment
Basic cooking knowledge and skills have eroded from generation to generation. Today, consumers‟
choices are defined by the increased sophistication of convenience food options and a lifestyle
characterized by multiple time demands, including work
14
Basic cooking is perceived as difficult
Culinary skills are not being passed down from one generation to the next because young people are not
involved in the cooking process from an early age and do not have the opportunity to learn through
participation. As a result, some younger consumers view cooking skills as a status symbol.
(Datamonitor, December 2006)
15
Competition Segmentation
Experimenters have been influential behind the plethora of new products aimed at providing
variety and freshness to the portfolio. Examples include Arabic, Oriental, Punjabi, Kashmiri,
and even Karachi-based recipes
Most of these innovations have only been introduced by Shan and National. While other
brands have concentrated their focus on Recognition and Convenience seekers
Country’s youth population accounts for more than 60% of the total population. This segment
is to be tapped with more focus by introducing convenience-focused recipe mixes
Relate brand essence towards youth and exuberance and how much they value Shan as a
convenience provider in their quest for easy meal preparation
16
Distribution Shares and Competitor’s Positions
Shan’s lack of nationwide (excluding Karachi) presence leaves it with just 1/5th outlet coverage
Shelf Share of Shan as compared to National is better which is largely due to the developed
taste buds of consumers in Karachi
Lack of NWD spread leaves Shan’s vulnerable by concentrating its presence in Southern region
only
As compared to Shan, National Foods has better NWD coverage resulting in 24% of outlet
coverage
17
Key External Trends
• Consecutive floods of 2010, 2011 and 2012 have devastated $2.2 billion of crops and
damaged 700,000 acres of farmland
• FMCG Rural sales growth was "more than double" that of urban areas. This is due to the
fact that farmers’ income increased by PKR 342 billion due to higher world crop prices –
Wheat support price increased by 15% in 2012 alone
• Sunsilk shampoo, Pond’s moisturizers and Colgate toothpaste have boosted local units’
revenue by at least 15 percent
18
External Trends and Impact
More than 55% of Shan’s recipes sales consist of rice related dishes
19
Internal Analysis
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Strengths
• Uses the best Materials (imports black pepper from India, and Thailand)Ingredient spices
are hand picked by specially employed Hindu women at the plant
Uses cryogenic technology. Freeze the
• Employs cryogenic technology spices to -170⁰C and then grinds them
to preserve the aroma and taste
• Strong R&D: Innovation and product concept
• Has a very strong heritage and legacy behind the brand as it had a first mover advantage
in Southern Pakistan which has made Shan a popular name among the customers
resulting in a 70% market share in Karachi
Weaknesses
• Shan has a small presence in other food categories. Many loyal Shan customers purchase
National products in these categories
• Lack of Advertising
21
Opportunities
• Food habits are rapidly changing. People now want faster and easier ways of cooking
• Food is still the largest expense item of a middle class income – 43% and is likely to remain that
way for the coming decades
• Rural markets, that are fast growing have not even begun to be served yet
• Rural markets present a lucrative target audience, if only they can be tapped
Threats
• The emergence of newer brands with deep pockets can also damage Shan’s market share due to
heavy advertisement while keeping the product quality close to that of Shan
• Increasing substitutes: The number of substitutes is increasing in the form of ready made foods
22
Confrontation Matrices
Penetrate into new international territories & launching Shan as global food brand
Make inroads into bottom of the pyramid & rural markets through lower priced SKUs or flanker brands
Use robust R&D to come up with innovative recipes that provide comparatively cheaper meal solution
to counter increasing inflationary pressures
Strengthen the distribution channel to get access into rural areas. FMCG products are gaining
ground in rural areas. Customers are gradually shifting towards branded products. *
Built an organizational culture that is conducive for learning, growth & employee development
to train and motivate the workforce to penetrate into the rural countryside. Unilever sends its
own salespeople to places and far & wide in rural Pakistan
23
Any threat of new entrants is mitigated by Shan’s heritage & Brand Loyalty
Fast evaporating middle class in Pakistan would attract and develop non recipe segments.
Shan, with its diverse food production capabilities, has dealt with this threat quite
effectively (SKUs in Rs. 20 Packet)
Shan’s lack of advertising makes it vulnerable against up and coming brands which try to
penetrate the market through heavy promotions
The company must spread its business, total volume, across Pakistan especially in the rural
areas
24
Consumer Needs & Preferences
Unbranded recipes fare well only along the availability and Price axes
National Foods and Shan remain quite close in almost every attribute according to the
customers, but Shan fares slightly well than National in two most important attributes – Taste
and Quality
Shan, through its cryogenic freezing process, differentiates itself from other competitors in
terms of quality and taste.According to our research customers cannot compromise on ‘Price’
and as well as on ‘taste’. To fare well the companies usually come up with price cuts and
discounts on festive occasions
Besides them ‘quality’ and ‘availability’ are the other two most important attributes
25
National Foods has been able to cut back price by 20% during seasons, which boost its
sales occasionally
One of the areas for improvement for Shan would be to increase its reach to the
consumer by going beyond the 20% of the outlets that it presently covers in the total
universe
Shan, through its cryogenic freezing process, differentiates itself from other competitors
in terms of taste and quality
26
Customers’ Buying Criteria
27
Key Issues
Product Homogeneity
Conservative culture plays an important part in many employees leaving the organization
annually
Branding efforts in Punjab need to be addressed with more efforts in terms of money, time and
energy
28
Marketing Plan
29
Purpose
Introducing new users for the products
Continuous innovation of new variants
Strengthening presence in rural and sub-urban markets
Strategic Intent
Making Shan the preferred choice in the whole of Pakistan, through need based
products, sustaining leadership in the entire market while increasing penetration in rural areas
to gain higher market share by making Shan available and creating awareness, and attaining
cost effectiveness
Competitive Innovation
30
Support strategic intent through increased attention to the process of formulating customer
centric products for Pakistan’s rural areas. As Shan is perfectly aware of the importance of first
mover advantage. Continuous R&D to meet up the increasing market requirements
Innovate products that not only taste good but are also priced low
Introduce products for the rural market and making them widely available
Penetrate deeper in to the consumer segments that Shan exists in
Create awareness through rigorous marketing by remaining Shariah compliant
Improve marketing efforts in Punjab
Vision
“To be a dominant global player in food products and socially responsible company that attains its
quality standards so that Shan stands for tradition, trust and good taste.”
Mission
“To continuously develop and produce quality products that meet the customers and markets demands,
compatible with applicable regulatory requirements. To be a consumer oriented company with keen
insigne of food products ensuring quality panty consistency and authentic taste to operate with state of
the art technology to obtain optimum results and retain highest quality standard thrived efficient and
motivation human resource and inculcate in them a sense of participation and proved for personal goals
and development.”
31
Objectives
32
Product Plan (Existing Products)
33
Channel Plan (Existing Product Plan)
34
New Products
35
French fries Masala
Pakistanis are food lovers and prefer newer tastes and have varied preferences. To cater to the
growing demand of innovators, Shan should come up with a product that can make the lives of
its customers easier, tastier and fresher. For these needs a new French Fries Masala, should be
launched. There is a growing number of French Fries vendors all over Pakistan’s urban areas. On
the other hand mothers are becoming more hygiene conscious day by day. If the mothers can
provide crispy and tasty French fries at home then the need for the vendors won’t exist. This
can be done by providing them with fries that offer various tastes such as BBQ fires, Tikka fries,
Biryani Fries, Achar Fries, Bihari BBQ Fries etc. This would cater to the need of hygiene, taste &
recognition and innovation alike.
Dilpasand Biryani
A typical Biryani made from Shan’s recipe costs around PKR 470/=, with the cost of Shan’s single
pack being only PKR 50/=. If Shan can somehow manage to reduce the price of the overall made
product than it can fare well in the slowing economy. One way is by eliminating the largest cost
element i.e. Chicken. Dilpasand Biryani will taste just like a Chicken Biryani with a dedicated
chicken flavor. Dilpasand Biryani would provide same or in-fact better taste but would not
require chicken, which will reduce cost by around 70%. The promotion would be targeted at
lower SECs especially in sub-urban areas with a jingle – “Main bhi Khaoon Biryani”
Shan 50
Chicken 350
Oil 30
Onion 5
Youghurt 25
Tomato& Potato 10
Salt 0.25
TOTAL 470
36
Product Plan (New Products)
37
Channel Plan (New Products)
38
Sample New Products Promotional Plan
39
Brand Positioning:
“Crispy Flavored Fries Masala”
“Inspired by craving for enriching taste buds, Shan offers a wide range of highly nutritious,
Crunchy, Spicy, Smoky French fries seasoning for a lavish Cuisine adding an Eastern touch”
Brand Awareness:
Since, this would be a new product offering by Shan, therefore, it needs to be communicated to
the target audience at large for positioning “Shan Crispy Flavored Fries Masala” into
consumers’ minds with its wide range including:
Phasing:
- Plan has been divided in four phases:
• Phase I : Till June 2013
• Phase II: Till December 2014
• Phase III : Till June 2014
• Phase IV : Till December 2015
40
Advertising:
One TV ad would be on aired for “Shan Crispy Flavored Fries Masala” to generate top of the
mind recall for the brand on Channels like “GEO Entertainment”, “ARY Digital”, “Express
Entertainment”, “HUM TV”, “TV One”, “Cartoon Network”, “Nikelodean”, “WikKID”, “Pogo”,
“Disney Channel”, “Masala Channel”, “ARY Zauq”, “Zaiqa” etc
Another, to be a Print ad for “Shan Crispy Flavored Fries Masala” to make the target market
aware about product offerings and how it is better than traditional home cooked fries in
magazines like “Young World”, “Home Express”, “Masala Food Magazine” etc
BTL Activities:
Brand Activation
Door to door knocks where consumers are given fliers
Fliers to have the difference between traditional fries and “Shan Crispy Flavored Fries Masala”
Consumers to be handed over a coupon to try out “Shan Crispy Flavored Fries Masala” for free
Discussion on the fries consumption in general and on “Shan Crispy Flavored Fries Masala”
specifically to be initiated by the host
Taste trial of “Shan Crispy Flavored Fries Masala” to be done here. Free packets of “Shan
Crispy Flavored Fries Masala” to be given to all the attendees coming in facilitate conversion
Same activity will also be carried out in shopping malls and Key Accounts like “Hyperstar”,
“Makro”, “Naheed”, “Imtiaz” & “Agha’s Super Mart”
41
Sponsorships:
• Sponsor “EidMillan parties” and “Iftaar parties” at Schools
• Sponsor “Summer & Winter Carnivals” at Colleges & Universities
Public Relations:
• Morning shows’ TV hosts talking about “Shan Crispy Flavored Fries Masala” and
persuading housewives & women in particular to cook them for their children for a
healthy meal on TV channels like Masala TV - “Masala Mornings”, ARY Zauq -
“Lively Weekends” , ARY Digital – “UthoJago Pakistan” etc
• Through SMS buzz
Internet:
• Ads will be placed on Facebook
• A Face Book Fan page for “Shan Crispy Flavored Fries Masala” will be created
• Shan Foods Website will be updated
Trade Promotion :
100gm of “Shan Crispy Flavored Fries Masala” packet to be bundled with the Combo deal of 5
Packets of (100gm each) “Shan Food Recipes”
In-Store Branding
We will use various forms of Visual Merchandising to make the presence of “Shan Crispy
Flavored Fries” more prominent in the market. We need to create an awareness about the
benefits of the “Shan Crispy Flavored Fries Masala”, and the best place to gain immediate
response from consumers is the Point-of-Purchase or Point-of-Sale. Thus we will be placing a
diverse range of displays and demos in the retail outlets which will emphasize on the launch
theme as follow:
• Gondola
• Carts Advertising
• Aisle Advertising
• Off The Shelf Branding
• Entrance Advertising
42
Gondola
• The gondola is correctly considered the most desired and
sought after display and sales space, due to its strategic
location in the sales outlet.
Carts Advertising
Advertising in constant motion – accompanies the customer
from the moment s/he enters the retail space and
throughout the entire process
Aisle Advertising
The aisle space of a category is a strategic advertising
location that gathers around it non-stop consumer traffic
43
Off The Shelf Branding and Entrance Advertising
We will develop a retail visibility language that will also
support sales points off the shelf. The visibility stands are
modular stands that enable a combination of exposure
and display of promotions and/or products at a second
sales location, such as: promotion stands, cashier line and
enveloped stands
The visibility stands also turn the second sales location into
a first class accomplishment: the display is organized,
respectable and eye-catching
Packaging:
o Shan Foods signature Red & yellow color to be retained as it a heritage associated to it
o The packaging to remain the same initially but can made more graphically appealing at
a later stage
o We propose that the packaging be slightly modified with adding a Zipper to the “Shan
Crispy Flavored Fries Masala” packet for using it later on once the packet has been
opened
o There will be two sizes of “Shan Crispy Flavored Fries Masala” packets that will be
available in the market as mentioned below:
o - 5o gm (2.5 Kg of Fries)
100 gm (5 kg of Fries)
44
Budget
45
Conclusion
46
47
Bibliography
http://articles.economictimes.indiatimes.com/2011-10-12/news/30270834_1_carol-bartz-alibaba-
yahoo-shares
http://www.riazhaq.com/2011/01/pakistans-rural-economy-showing.html
Bloomberg
^ http://www.thefrontierpost.com/article/195521/
Review of Pakistani customers food habits for the last 30 years 2005
48
Annexure A – Questionnaire
This survey should only take about 5 minutes of your time. Your answers will be completely anonymous
Any questions marked with an asterisk (*) require an answer in order to progress through the survey
49
Q7.) Why do you purchase this brand?
a) Taste
b) Price
c) Availability
d) Diverse Range
a) Yes
b) No
50