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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 Mitchells family continues to grow, reaching more and more households worldwide with an ever-increasing array of farm-fresh products ranging from thirstquenching 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

COMPANYS 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 Mitchells 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 Mitchells is operating with 32 executive staff members along with a big sales and labour 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 linecontrol 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: Updating of employee skills by training Acquisition of new technology 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 Mitchells 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 Mitchells, brought another major distinction for the Company; the ISO 9001 accreditation, making it the first food company in Pakistan to achieve the honour.

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.

MITCHELLS 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, Mitchells also promise convenience & variety at affordable prices.

VISION AND MISSION STATEMENT

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. 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. 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.

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.

To be a company that endeavours to set the highest standards in corporate ethics in serving society.

SWOT analysis of Mitchells

Strengths: Fully integrated operations Having its own growing and processing facilities Modern high-volume industrial equipment Professional management and a trained workforce A smooth distribution system with nationwide coverage Right products, quality and reliability.

Weaknesses: Customer lists not tested Some gaps in range for certain sectors Customer service staff needs training More budget needed for Human Resource Development

Opportunities: Mitchells can continue its dominance as the innovator Can maintain its position as market leader Can also continue to be a trend setter International and domestic market expansion Introducing new verities of food products Local competitors have poor products

Threats: Political instability International Financial crises Challenge of work force diversity Changing technology and concept Legislation could impact Retention of key staff critical Possible negative publicity Market demand very seasonal

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 countrys 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 Mitchells 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 Mitchells imply different strategy in terms of Karachi. The reason of this limited demand according to the market analysis is because that you cannot relate squashes with different occasions for example the way red syrup Jam-i-Sheer in 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 up to 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 target market at the time of launch was up to 60 years of age and the core target was 1530 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.

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 Mitchells 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. 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

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 flavors. Diet Mixed Fruit Squash, and Diet Orange Squash

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:
Mitchells 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 Mitchells 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 endeavor 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.

Competitor analysis:
The competition is very fierce among the competitors so Mitchells 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

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 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 Mitchells 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: Shezans 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.

. SHEZANS COMPETITIVE STRATEGY: Initially launched only three flavours of squashes which were ( mango, orange and lemon). But in current market it has 6 flavours (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.

MITCHELLS 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 flavours that promise to liven up your day. Mitchells 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 Mitchells continues its dominance as the innovator, market leader and trend setter.

In 1998 Mitchells 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 Mitchells is trying to retain the market share and its loyal customers. Mitchells introduced squashes pet bottles with the quantity 1.5 litre and 810 ml Mitchells squashes are available in seven flavours (orange, mango, mix fruit, pineapple, guava, lemon and lemon barley) Mitchell's Diet Squashes are available in eight flavours. Mitchells squashes contain extensive fruit content which is the major differentiation factor. In year 2001 and 2002 they run a biggest campaign for squashes. Mitchells 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 dont want to waste their money on squash ads.

Last year Mitchells launched DIET squashes, for NICHE MARKET. POS material of advertisement has only been used to promote it. Mitchells 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

Mitchells is using consumer and trade promotion. But mainly focusing on trade promotions. . In Lahore the retailer benefit is 12+1, it means Mitchells 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 Mitchells give 3 bottles to its retailers.

Their unique selling proposition is quality .They never compromise on the quality. Even if they got any complain then they immediately replace it. Michelles believes that success of the organization lies in the satisfaction of its customers. Therefore Mitchells has always given first priority to its customers 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.

Suggestions:
As according to what we observed from the Mitchells Strategies we have found that Mitchells is sometimes proactive and some time it adopts reactive approach. Mitchells should introduce more products in squash like refreshing drinks. Mitchells should do more advertisement to attract more customers. They should go for further diversification because they are backward integrated so they should go for forward integration. They should go for freeze and ready to cook food products because Mitchells has well reputation in the mind of customers and people will like Mitchells products. Mitchells needs to be much conscious and careful about its sales and about the customer level satisfaction and they tried to maintain a same graph of satisfaction level and give customer a quality, fresh farm products direct from their own farms. Mitchells needs to be more 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.

Mitchells management main focus is on the strategies at SBU level that considering that three forces: Customer Competition Corporation

And in addition Mitchells management keep eye on internal and external factors that plays an important role in developing a strategy. Mitchells must have the external information pertains to social, economic, political and technological trends and product/market environment. The information is analyzed to identify the SBUs strengths and weaknesses, which together with competition and customer define the objective of SBU.

About the Corporate Appraisal Mitchells needs to keep a closer interact with all the groups of corporate publics having a stake in the organization. In this context Mitchells 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.

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.