Project on Marketing Plan of Mitchells

Table of contents
　

• Introduction

• History

• Company’s information

• Present performance of Mitchells

• Future prospects

• Objectives

• Mission & vision

• Situation analysis

• Market analysis

• Target market

• Segmentation

• Market needs

• Market trends

• Market growth

• SWOT analysis

• Competition analysis

• Market shares

• Product offerings
 • Marketing mix

• Positioning strategy

• Conclusion

INTRODUCTION
　

Mitchell's Fruit Farms Limited is the oldest and most trusted Food Company in
Pakistan. Since starting its operations in 1933, the Company has gone from
strength to strength, and its wide variety of products has inundated breakfast
tables with farm-fresh consumables, straight from its orchards in Renala Khurd -
products of a high standard, enriching the lives of millions of people with all the
goodness of nature for a healthy lifestyle.

Today the Mitchell’s family continues to grow, reaching more and more
households worldwide with an ever-increasing array of farm-fresh products
ranging from thirst-quenching Squashes & Syrups; fruity Jams, Jellies and
Marmalade; rich Tomato Ketchup & savory Sauces; tasty Pickles; refreshingly
nutritious Canned Fruits & Vegetables; and a wholesome assortment of
Candies & Chocolate from its wide range of confectionery products.

　
　

　
　

HISTORY
PHASE I: BEFORE INDEPENDENCE...
Francis J. Mitchell arrived in Bombay from Scotland at the end of World War I.
He had been invited by his brother who was already established in North
Western India as contractor to the government for construction of the railway
network in this part of the subcontinent. At that time, when Francis was already
an old man of over sixty years, an opportunity came his way in the form of the
emerging irrigation system being laid out in the canal colony districts of West
Punjab. He was successful in obtaining the lease of 720 acres of agricultural land
in the then Montgomery district. The area allotted to him extended for nearly
seven miles from Renala Khurd to Kissan, sandwiched between the arterial lower
Bari Doab Canal and the Lahore/Karachi railway.

He initiated the business of growing grapes for eventual sale as dried raisins and
sent his younger son Richard to Australia for training at Mildura which was well
known as a center of specialization in the field of horticulture. The

Company, with Francis Mitchell as its Governing Director and his two sons
Leonard and Richard as Directors, was incorporated in 1933 and given the name
Indian Mildura Fruit Farms Ltd. The North Western Railway had opened to traffic
a few years before the acquisition of the land by the Mitchell family. Francis
Mitchell was asked by the railway authorities to propose a name for the adjoining
station. Hence the word "Kissan" which subsequently became a familiar brand
name.

The trial planting of grapes, which began in 1921 and lasted until 1924,
unfortunately did not prove to be a success. The vines suffered serious damage
from pests during the rainy season, just when the grapes needed dry weather for
ripening. The entire plantation was replaced with citrus, which, fortunately,
proved to be profitable. The elder son, Leonard, was sent specially to South
Africa to look for good rootstock, which was the foundation of Valencia orange
trees these are well established on the farms today. With the outbreak of World
War II, demand for canned fruits and vegetables for the allied troops, stationed in
India, began to grow rapidly. To cost-effectively cater to this growing demand, a
factory was established in Bangalore, South India. A new joint-stock company by
the name of Kissan Products Ltd. was registered.

PHASE II: AFTER INDEPENDENCE

　

As a sequel to Independence in 1947, Indian Mildura Fruit Farms Limited lost

nearly 75% of its Indian market. The company's name was changed to "Mitchell's
Fruit Farms (Pvt.) Ltd." and the brand name "MITCHELL'S" became the exclusive
property of the Pakistani company. Likewise, the Indian company acquired
exclusive use of the "KISSAN" brand name. Francis Mitchell died in 1933 and his
elder son, Leonard, became Chairman. After his brother's tragic death in an air
accident, Richard took over the chairmanship in 1949 and continued in this
capacity until his death in 1987. The family sold its shares gradually, having
inducted Pakistani shareholders in 1957, and retired to Eastbourne, U.K., in
1959. Richard's wife, Betty, retained her links with the Company in the capacity
of Director until 1991. She died in 1995.

　
　
　
　

COMPANY’S INFORMATION
SALES
The national market, particularly in the major cities was saturated with the
imported foodstuff. Although foreign fruit preserves, sauces and drinks were
visible on the shelves of the largest stores these were not as abundant as
imported confectionery, especially various brands of chocolate. It would appear
that much of this merchandise continues to be brought into the country through
unofficial channels without payment of imported duties. Despite these unhelpful
conditions Mitchell’s were able to achieve a significant increase of over 10% in
the sales of confectionery and succeeded at the same time in recording a
marginal growth in our traditional groceries business.

CAPITAL EXPENDITURE
In the beginning they have invested around Rs.29.76 million in putting up modern
automated facility in the form of building and machinery. An independent feeder
of supply of electric power directly form the WAPDA grid station together with a
new standby generator were commissioned in January 2002.at a cost of Rs.14,
535,652.this should result in considerable savings in power bills. Internal cash
generation and bank borrowing have met the capital expenditure bill in full.

HUMAN RESOURCE
Human Resource has also the pivotal importance for the company. Management
and employee skills are constantly being updated through training courses and
study tours both at home and abroad. Currently Mitchell’s is operating with 32
executive staff members along with a big sales and labor force

RESEARCH AND DEVELOPMENT

The success of Mitchell's products, and the taste that has been winning
consumers' hearts for generations, is the result of the Company's ongoing
investment in and emphasis on quality control, reinforced by research and
development (R & D). Both sections closely coordinate with the Marketing and
Exports Office in Lahore where product concepts are initiated and passed on to
the R & D section for formulation. Once the R&D section has prepared samples
of new products, the Marketing Division carefully carries out product evaluation.

QUALITY CONTROL & TRAINING

Along with R & D, the Quality Control section ensures that all our products live up
to the consumers' high expectations. From selection of the finest fruits, to
processing and packaging, quality control plays a key role in keeping a vigilant
and unrelenting eye on every step of the process. The Quality Control staff, with
a main up-to-date laboratory, two line-control labs for the Groceries and Sugar
Confectionery divisions, and an incubation lab, ensures that there is no
deficiency in quality standards during production.
As the Company considers its employees its most important asset, management
skills are being constantly updated by sending executives on training courses
and study tours, both at home and abroad.

QUALITY POLICY
Mitchell's Fruit Farms Limited, is committed to produce best quality products
meeting our customers' requirements at competitive prices, strengthening our
position as a quality managed company. To meet this obligation, the company
will continue:

1. Updating of employee skills by training

2. Acquisition of new technology

3. Re-evaluation of its quality control and quality assurance system

Management.

EXPORTS AND IMPORTS

EXPORTS
At present, MITCHELL'S products are being exported to several parts of the
world, including UK, USA, and the Middle East. In future the Company is
planning to make MITCHELL'S a brand name familiar with households in every
part of the world.

IMPORTS
There are certain Mitchell’s products that are being imported. For example, we
import pineapple from Singapore. Only fruit is imported, the rest of the process is
done in our farms.

Some of the fruit is imported in the form of pulp such as mango. We do grow
mangoes in our farms but due to the increasing demand of mango items we have
to import some of the quantity from other countries to meet the demand. Sugar is
also imported.

　
　
　
　
　
　
　

PRESENT PERFORMANCE OF
MITCHELLS
The Company passed a major milestone when it went public in 1993, receiving a
record subscription for its shares floated on the market. The year 1998, the 65th
for Mitchell’s, brought another major distinction for the Company; the ISO 9001
accreditation, making it the first food company in Pakistan to achieve the honor.

Today in Pakistan, Mitchell's is the only major company with fully integrated
operations having its own growing and processing facilities at one location.
Modern high-volume industrial equipment, professional management and a
trained workforce ensure that Mitchell's maintains its lead. Fully computerized
and inter-linked regional sales offices manage burgeoning countrywide sales,
with those in major cities, Karachi, Lahore, Rawalpindi and Islamabad. All the
offices are on the Internet/e-mail network ensuring uninterrupted flow of data.
Highly qualified executives using modern management tools from the Head
Office in Lahore handle commercial, financial and accounting functions.

A smooth distribution system with nationwide coverage and consistency of

quality have kept the most prestigious national institutions loyal to Mitchell's’
growing product range. These include Pakistan International Airlines (PIA),
leading five star hotels and clubs, Utility Stores Corporation, Canteen Stores
Department, chains of main stores and established restaurants in major cities.

　
　
　
　
　
　

FUTURE PROSPECTS
We believe that given the vast agricultural potential of Pakistan, there are bright
prospects for the food processing industry, which can helpmeet the nutritional
needs of the growing urban population within the country as well as provide a
surplus for export. The pre-requisite for such a development is a healthier and
expanding economy. We are confident that our company is well placed to derive
full benefit for the opportunities as they arise.

　
　

MITCHELL’S OBJECTIVES
Mitchell's objective is to provide its customer with healthy, innovative and best
quality food that will tempt their appetite at all times. Above all, Mitchell’s also
promise convenience & variety at affordable prices.

VISION AND MISSION STATEMENT

1. To be a leader in the markets we serve by providing quality products
and efficient services to our consumers while learning from their feedback
to set even higher standards for our products.

2. To be a company that continuously enhances its superior technological

competence to provide innovative solutions and superior products as per
requirement of the market place.

3. To be a company that attracts and retains outstanding people by

creating a culture that fosters openness and innovation, promotes
individual growth, and rewards initiative and performance.

4. To be a company which combines its people, technology, management

systems, and market opportunities to achieve profitable growth while
providing fair returns to its investors.
 5. To be a company that endeavors to set the highest standards in
corporate ethics in serving society.

　
　
　
　
　
　

SITUATIONAL ANALYSIS
MITCHELL’S
Mitchell’s launched its squashes in the year 1941. Mitchell’s was
the sole player in the field of

squashes at that time. They were the first movers in rich fruit citrus.
They identified the need of,

make to drink product. After the proper customer need analysis

consistent screening and

evaluation by the Mitchell’s research and development department

a totally new product

(squashes) was designed in the form of rich fresh fruit citrus .It was
a break through innovation

They availed the opportunity and gained the first mover advantage.
So they get hold of major

market share , and with the passage of time they captured the
market knowledge and

rare resources
 • Mitchell’s got competitive advantage because they had the first mover
advantage

• Fully integrated operations. Specially farm fresh fruits with having their
own growing and processing facilities

• Mitchell’s had professional management and the trained workforce

• Mr. Richard got training from Australia Mildura at the initial stage

• A smooth distribution system with nationwide coverage

• Right products, quality and reliability.

• Management was committed and confident

• Mitchell’s was the pioneer in the field of squashes, they gained massive
market share and achieved the positive word of mouth regarding there
products as they are made of fresh farm fruits.

Target Market:
The target market at the time of launch was up to 60 years of age and the core
target was 15-30 years of age.

Segmentation:
They segmented their product on the socio economic classes focusing on- A, B+
and B.

Marketing Strategy:
As they had the first mover advantage they utilized it fully and initially promoted
squashes by newspapers, posters radio channels. But they mainly invested there
resources in building there corporate image .

　
　

MAJOR COMPETITOR
SHEZAN:
The company was incorporated in 1964 as a Private Limited Company, with the
main objective to set up an industrial undertaking for manufacturing of juices,
squashes, sherbets, jams, pickles and preserves from fruits and vegetables.
Shezan International Limited was conceived as a joint venture by the Shahnawaz
Group of Pakistan and Alliance Industrial Development Corporation of U.S.A.
The agricultural background of the Pakistani sponsors induced them to establish
this agro-based industry. Today Shezan is the largest food processing unit
having developed and installed the capacity to meet the country's local as well as
export needs.

While introducing a me too product, squashes the major threat was

to compete

Mitchells, who already got the major market share by capturing rare
resources and

already gained knowledge of key factors and issues of the market.

It was very costly for

Shezan to overtake Mitchells.There was a high risk involved in

competing with Mitchells
 fruit Farm Company. Shezan had the advantage to follow the
already set product

standards of Mitchell’s regarding research and development.

Shezan had the line of

action to grab market share by offering high quality and better taste
followed by product

variety by analyzing the Mitchells squashes.

Target Market:
Shezan’s target market is up to 60 years of age and their core target market is
15-30 years of age.

Segmentation:
They segmented their product on the socio economic classes focusing on A, B+
and B.

Marketing Strategy:
Launched squashes in 1968-1969. at that time they promote it by newspapers,
posters radio. On radio there was a show with the name "HIT BREAK" the host
name was HAMAD. They used market skimming strategy by offering low prices
to capture the market share.

SHEZAN’S COMPETITIVE STRATEGY

• Initially launched only three flavors of squashes which were

( mango, orange and lemon). But in current market it has 6 flavors

(orange, mango, mix fruit, lemon and lemon barley, pomegranate)

• Shezan was available in 735 ml. glass bottle but now its available in pet
bottle of

830 ml
 • Complete backward integration in case of this company since it is the
only company that has its own sugar mill as well in the name of Shahtaj
Sugar Mills, Mandi-bahauddin.

• Shezan has the most developed distribution channels network and

therefore it has an advantage of reaching maximum customers throughout
Pakistan with the help of small retailers as well as larger retailers

• Shezan owns 60% of shelf space in all of the almost 16,000 outlets of
Utility Stores

• Shezan is involved in advertisements and low cost promotional

campaigns which makes it a very generic brand name in the mind of
consumers when they are out shopping for squashes.

• Shezan is the largest food processing unit having developed and

installed the capacity to meet the country's local as well as export needs.

• Shezan has the highest production capacity as compared to its

competitors.

　
　
MITCHELL’S CURRENT STRATEGY

• Mitchell's refreshing Squashes are made from the Farm Fresh Fruits in
a hygienic environment keeping in view the health of their valued
customers.

• Mitchell's procure raw material from fresh and sun ripened fruits
especially grown on their orchards in Renala, they offer a range of
energizing natural fruit flavors that promise to liven up your day.

• Mitchell’s is the only major food company in Pakistan today with fully
integrated operations having its own growing and processing facilities at
one location.
• Modern high-volume industrial equipment, professional management
and a trained workforce all combine to ensure that Mitchell’s continues its
dominance as the innovator, market leader and trend setter.

• In 1998 Mitchell’s became the first food company in Pakistan to achieve

ISO 9001 accreditation, thus becoming more competitive on the
international stage also.

• Squashes has now stagnate growth and product itself is at maturity

stage so Mitchell’s is trying to retain the market share and its loyal
customers.

• Mitchell’s introduced squashes pet bottles with the quantity 1.5 liter and
810 ml

• Mitchell’s squashes are available in seven flavors (orange, mango, mix

fruit, pineapple, guava, lemon and lemon barley)

• Mitchell's Diet Squashes are available in eight flavors.

• Mitchell’s squashes contain extensive fruit content which is the major

differentiation factor.

• In year 2001 and 2002 they run a biggest campaign for squashes.
Mitchell’s used more than 200 hoardings displayed all over the Pakistan

• As squashes has stagnate growth and product itself is at maturity stage

the company is focusing upon building its corporate image rather than
investing solely on squashes advertisements. So they don’t want to waste
their money on squash ads.

• Last year Mitchell’s launched DIET squashes, for NICHE MARKET.

POS material of advertisement has only been used to promote it.

• Mitchell’s Diet Squashes contain No Sugar and have 90% less calories
than Regular Squash

• Mitchell's Diet Squashes are available in two flavors.

Diet Mixed Fruit Squash, and

Diet Orange Squash

• Mitchell’s is using consumer and trade promotion. But mainly focusing

on trade promotions. . In Lahore the retailer benefit is 12+1, it means
 Mitchell’s give one free bottle to its retailer on the purchase of 12 bottles
but on the other side in Karachi the trade promotion policy is 24 + 3 i.e. on
the purchase of 24 bottles Mitchell’s give 3 bottles to its retailers. Thus
Mitchell’s make the use

• Their unique selling proposition is quality .They never compromise on

the quality. Even if they got any complain then they immediately replace it.

• Mitchelle’s believes that success of the organization lies in the

satisfaction of its customers. Therefore Mitchell’s has always given first
priority to its customer’s feed back and this they do by the following ways

• Thorough questionnaire feed back forms

• Thorough shop keepers

• Through ISO procedures (CPA, Corrective and Preventive

Actions)

The feedbacks and opinions of the customers are very useful for them and
besides

this they study the feedback and try to implement that accordingly.

　
　
　
　

MARKET ANALYSIS
The market for Squashes in Pakistan is mainly influenced by branded
competitors in this specific product category. These competitors have firm
distribution channels..
As a majority of the country’s population is in lower-lower to lower-middle class,
this is the reason that people are more price conscious and secondly the also
look for the convenience of products due to this reason there is a demand shift
observed in the squash industry. The demand of Squashes is now limited only for
few months in major areas of country. The Business of Squashes in Lahore is at
its peak between May and November So Mitchell’s play a different strategy as far
as region Lahore is concerned but on the other side business in Karachi remains
stale and on the same level of graph thorough out the whole year thus Mitchell’s
imply different strategy in terms of Karachi. The reason of this limited demand
according to the market analysis is because that you cannot relate squshes with
different occasions for example the way red syrup Jam-i-Sheerin and Rooh Afzah
are relating themselves to Ramadan and Muharam, another big reason of the
limited demand of the Squashes is because of its usage which is limited upto a
thirst quenching drink but red syrup can be utilized in many ways apart from
drinking such as toping, used in milk etc

　
　
　

　
　
　
　
Target market
The targeting decision determines which customer group the organization will
serve. Selecting good market targets is one of the management most demanded
challenges.

Mitchell’s basically design the strategy to target the Social economic class of A &
B+ grade. But then by the time every class becomes part of their market. There
primary focus was A & B+ rank but now they target overall market and go for
mass market. The reason is from the age group of (3-80) years old people use it
as a refreshing and energetic drink.
Target approach is being used by the Mitchell’s in case of Squashes product
variety. Here the segments are not clearly defined but extensive target.

　
　
　
　
　
　
　

Target Market
Demographics: up to 80 years as target market while core target
market includes ages between 15 – 30. Age: 10 and above

　
Family life cycle: Young, Children, Old people.
Psychographics: Middle, Middle Upper, Lower, Lower Upper, Upper
class.

Benefits: Quality, Rich in taste.

　

　
　
Segmentation
The concept of “one-size-fit-all mass market” is no longer relevant. Companies
have to define that which segment they are about to target. Few years back,
squashes segmentation was on the basis of behioral, life style and usage rate
was high but now the potential is not in the market. Even consumption pattern
has been decreased due to the entrance of other substitute products.

　
　
　
　
Market needs
Talking about the need of market there is a need of those products which are
comparatively cheap as well as give ease to consumer. In today’s world
everyone is in hurry and customer want quick drink and quick food just to save
their time. Considering Mitchell’s squashes need was there few years back when
powdered drink and juices and energy drinks were not introduced to the market.
So mitchells took the first mover advantage to introduce it though they conducted
a research to create a need and capture a major market share at that time.

1. Quality craftsmanship
Mitchell’s never compromise on its quality of fruit. Their squashes have extensive
fruit content. There quality remains consistent all the time.

2. innovations
As Mitchell’s company felt that customer are now very health continuous so they
introduce DIET SQUASHES last year with the slogan “lose weight not taste”. But
they have introduced it for the niche segments only. They even didn’t use
promotion activities for these innovations.
 3. customer services
As each and every company are trying to have good relationship with the
customer. So in this regard if they got any complains related to their products
they replace it without wasting the time of customer.

CUSTOMER SATISFACTION MEASUREMENT:

The success of the organization lies in the satisfaction of its customers.

Therefore Mitchell’s has always given first priority to its customer’s feed back and
this they do by the following ways

• Thorough questionnaire feed back forms

• Thorough shop keepers

• Through ISO procedures (CPA, Corrective and Preventive

Actions)

The feedbacks and opinions of the customers are very useful for them and
besides this they study the feedback and try to implement that accordingly.

Market trends
Trends are changing rapidly, so nobody knows the customer who will buy our
product today will buy it tomorrow as well as or not. At this time quashes are in
‘MATURITY” stage. The reason is because it takes relatively more time in getting
ready instead of other new drinks. So there is still not any hope to create a new
market in this industry. The only strategy Mitchell’s is using just to retain their
existing customer and not looking for new customers. Its basically depend that
customer is loyal to the product or not. The customers who are heavy users of
squashes might not be shift to other substitute because they are loyal to it.

Market growth
Now there is no more growth in squashes industry due to consumer preferences
and other factor is customer are very price conscious now. They want to have
instant drinks to save their time but at cheap rates. So market has been shifted
due to other drinks like powdered drink, instant drink, juices and red syrup. So
now squashes are lying in CASHCOW because it gives money but not further
growth. As Mitchell’s is the pioneer and still leader in the market so contain major
share of market so far.

BCG MATRIX

　
　
　
　
SWOT analysis of Mitchell’s
Strengths Weaknesses
• Fully integrated
operations
• Customer lists not
tested
• Having its own growing
• Some gaps in range for
 and processing facilities

• Modern high-volume
industrial equipment
certain sectors
• Professional
management and a • Customer service staff
trained workforce needs training

• A smooth distribution • More budget needed for

system with nationwide Human Resource
coverage Development

• Right products, quality 　

and reliability.
　
• Management is
committed and confident

Opportunities Threats
• Mitchell’s can continue • Political instability
its dominance as the
innovator • International Financial
crises
• Can maintain its
position as market leader • Challenge of work force
diversity
• Can also continue to be
a trend setter • Changing technology
and concept
• International and
domestic market • Legislation could impact
expansion
• Retention of key staff
• Introducing new verities critical
of food products
• Possible negative
• Local competitors have publicity
poor products
 • End-users respond to
new ideas

• Can surprise
• Market demand very
seasonal
competitors
　
　

　
SWOT analysis of squashes
　
Strength: power of quality which remain consistent.

Weakness: price and cost of ingredients used in squashes.

Opportunity: can define more segments like introduce squashes in small

bottles so reach customer buying power.

Threat: all the substitute drinks.

Picture of squashes:

　
　
　
　
　
　
　
　
　
　
　
　
　
　
Competition analysis
The competition is very fierce among the competitors so Mitchell’s always get the
first mover advantage and still the leader of market. It has major share in the
market.

Direct competitors: Shezan squashes

Indirect competitor: red syrup, instant drinks

　
　
　
　
Market shares
Mitchells 40%

Shezan 38%

Kinza 11%

Others 11%

　
Positioning strategy
We provide high price, high quality premium product. Our market share in only
Lahore is 30% for squashes. More than 50% of the area of the shelves in the
stores is covered from Mitchell’s squashes.

Position:
We focus on positioning because it is important for developing the image that our
product projects in relation to our competitors’ products (shezan).

 Positioning in relation to a competitor:

We place our products directly against the competitors’ products.

this strategy is suitable for us because we have a solid differential
advantage against our competitor

 Positioning in relation to a product class or attribute:

We sell our product with the slogan

“We provide farm fresh quality drink”

 And consider it to be our competitive edge against our competitors
and for the same reason we focus on this attribute claiming that
since we have our own farms we provide you with the squashes
made of fresh fruit.

Positioning by price and quality:

We consider our squashes to be a premium product. That is high

quality, high price. All our customers buy them due to brand loyalty.
They know that they are getting something that is worth what they
are paying.

　
　
　
　
Marketing mix
Product Strategy:
It is a consumer product. Initially it was a convenience product but due to the
massive demand shift observed in the market the customers are more eager to
buy ready to drink products.

Sugar Confectionary
Product Mix:
• Squashes & Syrups

• Jams, Jellies and Marmalade

• Tomato Ketchup

• Sauces

• Pickles

• Canned Fruits

• Candies & Chocolate

Depth Of Squashes:
Guava Squash

Mango Squash

Orange Squash

Pineapple Squash

Mixed Fruit Squash

Lemon Squash

Width of Product:
NEW LAUNCHES:

Mitchell's Diet Squashes

Mitchell's refreshing Diet Squashes are made from the Farm Fresh Fruits in a
hygienic environment keeping in view the health of our valued customers. Our
Diet Squashes contain No Sugar and have 90% less calories than Regular
Squash.

Mitchell's Diet Squashes are available in two flavours.

• Diet Mixed Fruit Squash, and

• Diet Orange Squash

　
 Product life cycle:
　

Pricing Strategy:
Mitchells pricing goal is to increase sales volume and maintain or increase the
market share. In order to seek higher sales volume we often apply discounting
techniques or other aggressive pricing strategies.

Mitchells had charged premium price due to there brand image in the market for
a long time. But, due to shift in demand it has become almost to its competitors.

They cannot afford to fall below certain level of prices as they have to maintain
certain profit level. At this point they are facing tough competition because one
glass of squash costs 7.5 Rs on the other hand the price of powdered drink is 5
Rs per glass.

Cost of 810 ml of bottle of Squash for retailer (including tax) = 71\ bottle

Cost of 810 ml of bottle of squash for consumer (including tax) = 82\ bottle

Profit margin = 11\ bottle.

Cost of 1.5 liter of bottle of squash for retailer (including tax) = 227.5\ bottle

Cost of 1.5 liter of bottle of squash for consumer(including tax) = 244\

bottle

Profit margin = 16.5\ bottle

Distribution Strategy
Mitchell’s adopted the channel-Structure Strategy for distribution. They believe
that product should be distributed directly from manufacturer to customer or
indirectly through one or more intermediaries. They sell their products sometimes
directly and sometimes they sell their products through retailers. Like in Lahore
they need to sell their products between the months of March till November
where as on the other side in Karachi the demand of the Squashes remain the
same throughout the year since there need to have other distribution channels as
compare to Lahore. Although Mitchell’s make use of the direct distribution
strategy and indirect distribution strategy and hence that is why the eye level is
always filled with the products of Squashes, which leads to a good result of
increase in sales.

As they have firm distribution network they follow the path

Producer----- Wholesaler ---- Retailer ---- Consumer

They also distribute directly to some retailers for example they supply directly to
the Airlines and Hotels like PIA and Pearl Continental.

Advertising and Promotion Strategy

As we have discussed earlier that the product is at maturity level. That means
that it has large number of loyal customers that are using the product. On the
other hand the potential of over all market of squashes will not grow because of
demand shift toward more convenient products. So at this point the company is
not investing on advertising of squashes even when the launched the diet squash
it was not followed by advertising campaign. Although it was for niche market
they advertised only at the point of purchase. There focus is on building the
corporate image of the company and to retain the potential customers.

Advertisement Analysis:
Target market:

In this particular add, the company has targeted a child of 6 years of age ranging
to 65 years old grandfather. As there are number of products shown in this ad
which are directed toward different age groups.

Core message of ad:

The core message of the ad is that the company wants to develop its corporate
image. They are celebrating there 75 years of farm freshness. That means that
this company is serving the customers from the last 75 years and they have been
consistent upon there quality and providing the customers fresh products which
is actually there USP. The first line of the ad “Bachpan ki kuch yadein hain”. We
remember our childhood when we grow up. So Mitchells is associated with the
child hood memories as it is a brand which is used by generation to generation.
There is an affiliation associated with it for years and the reason for this
relationship between the company and the customers is the fresh raw material
used for the products.

Functional attributes of the ad:

Different products of the Mitchells are shown at different occasions. So Mitchells

is trying to fit themselves as a family product. It is trying to relate itself with the
happy moments of the family.

　
　
　
Sales Promotions:
Incentives:
They use push strategy in the peak season as offer incentive to the retailers.
They offer 1 free bottle on the sale of 12 bottles and 3 free bottles on the sale of
24 bottles.

Public Relations
Mitchell's has joined hands with the village communities as well as the British
Council, the Department for International Development (UK) and Voluntary
Service Overseas (UK) in an effort to promote education in rural areas. Twenty-
five girls' schools have been set up in the Okara district in an endeavour to boost
the levels of female literacy. Also a Teachers Training Institute has been set up
to provide quality teaching staff to the local schools

Anjuman Khuddam-e-Rasool Allah:

Anjuman Khuddam-e-Rasool Allah is a community based Non Governmental

Organisation (NGO), established in 1976 in Shergarh, at the heart of District
Okara. AKRA has a reputation in the surrounding area for providing high quality
education to boys and girls from Nursery to Matric. The Anjuman is also well
known for its free dispensary, and its role as a social welfare organization in and
around Shergarh.

In this manner Mitchells is developing public relations and offering a social

service to the people of rural areas.

　
　
Conclusion
As according to what we observed from the Mitchell’s Strategies we have found
that Mitchell’s is sometimes proactive and some time it adopts reactive approach.
Mitchell’s is very much conscious and careful about its sales and about the
customer level satisfaction and since 1933 they tried to maintain a same graph of
satisfaction level and give customer a quality, fresh farm products direct from
their own farms. Mitchell’s is very much concerned about its SWOT analysis and
keeping a closer eye on every action it can take for the better of its products.

Every SBU has its own strategies to make and to implement and here at SBU
level business strategy focus more narrowly on their own products. The MD plays
an important and central role for the strategic planning to be more effective not
just as a MD but also as a strategic thinker and corporate culture leader.
Mitchell’s management deals with developing a marketing mix to serve a
designated market. Their main focus is on the strategies at SBU level where
Mitchell’s make their strategies considering three forces:

Customer

Competition

Corporation

And in addition to this internal and external factors also play an important role to
develop strategy.

Mitchell’s is concerned about the external information pertains o social,

economic, political and technological trends and product/market environment.
The information is analyzed to identify the SBU’s strengths and weaknesses,
which together with competition and customer define the objective of SBU.

Mitchell’s is also very concerned about the Corporate Appraisal and for this they
keep a closer interact with all the groups of corporate publics having a stake in
the organization. In this context Mitchell’s is very much concerned about the
Financial Position of the company. And they evaluate this factor very closely for
the further decision making of their products.