2011 SHAN FOODS PICKELS Marketing Plan Adeel A. Siddiqui 11262 - - PDF document

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2011 SHAN FOODS PICKELS Marketing Plan Adeel A. Siddiqui 11262 - - PDF document

2011 SHAN FOODS PICKELS Marketing Plan Adeel A. Siddiqui 11262 Adnan Waqar 11828 Mansoor Ahmed Khan 12140 Tanveer Manzoor 12282 Zeeshan Memon 12045 Shan Foods Private Limited Plot D 29, Sector 23, Korangi Industrial Area, Karachi,


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SLIDE 1

Marketing Plan

2011

SHAN FOODS PICKELS

Adeel A. Siddiqui 11262 Adnan Waqar 11828 Mansoor Ahmed Khan 12140 Tanveer Manzoor 12282 Zeeshan Memon 12045

Shan Foods Private Limited Plot D – 29, Sector 23, Korangi Industrial Area, Karachi, Pakistan Tel: +92-21-5115262-68 Fax: +92-21-5053080

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CONTENTS

Executive Summary .....................................................................................................................1 Introduction ................................................................................................................................2 Situation Analysis ........................................................................................................................2 Market needs ..........................................................................................................................2 The market ..............................................................................................................................2 Market trend ...........................................................................................................................3 Market growth ......................................................................................................................3 Supply chain channels and logistics .........................................................................................4 The Company ..............................................................................................................................4 Company Profile ......................................................................................................................4 Background .............................................................................................................................5 Mission ....................................................................................................................................5 Fully Equipped, Modern Facilities ............................................................................................6 Final Route to Perfect Creation ................................................................................................6 Product Offering ......................................................................................................................6 Differentiation and Positioning ................................................................................................6 SWOT analysis .........................................................................................................................7 Strength ................................................................................................................................7 Weakness .............................................................................................................................7 Opportunities .......................................................................................................................8 Threats .................................................................................................................................8 Competition ............................................................................................................................8 Marketing Strategy .....................................................................................................................9 Value Proposition ..................................................................................................................10 Critical Issues .........................................................................................................................10 Financial Objectives ...............................................................................................................11 Marketing Objectives .............................................................................................................11 Target Market Strategy ..........................................................................................................11

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SLIDE 3

Messaging .............................................................................................................................12 Branding ................................................................................................................................12 Marketing Mix ...........................................................................................................................12 Product (Pickel) .....................................................................................................................12 Packaging ..............................................................................................................................13 Pricing ...................................................................................................................................14 Placement .............................................................................................................................14 Promotion .............................................................................................................................15 People ...................................................................................................................................16 Category Goals ......................................................................................................................16 Controls ....................................................................................................................................17 Implementation .....................................................................................................................17 Keys to Success ......................................................................................................................17 Market Research ...................................................................................................................18 Contingency Planning ............................................................................................................18

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Chapter: Executive Summary

1

EXECUTIVE SUMMARY

Shan Foods is a brand identified by its Quality and Taste that has been delighting the growing culinary needs of urban/rural population. The marketing mix includes the traditional, taste and quality products which are produces to meet specific needs of demographics, the pricing strategy, and promotions. The analysis of internal and external strength of the organisation, competitive environment enables the team to propose dynamic and constructive strategies for the successful compliance of company’s objectives and strategic mission. The marketing strategies are outlined to gain major market share across Pakistan with distinguished culinary

  • products. It focuses on the Organizational Objectives and Market Propositioning.

The forecasted growth in Pickles SBU is 67% during 2011. The accomplishment and success of Shan Foods Pickles will be measured with the capture of market share in terms of economic value and the increase in the brand value.

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SLIDE 5

Chapter: Introduction

2

INTRODUCTION

The adaptability of any new and innovative product is initially very slow and therefore conducting a descriptive study of the market is necessary before the launch of any such

  • product. Shan Foods is about to launch RTEM (Ready to eat meal), a new product range for

Pakistan, with different variants. It provides the convenience of cooked food product, packaged in retorted pouches, which can be heated directly through microwave and then served.

SITUATION ANALYSIS

MARKET NEEDS

Shan is serving their customers with progressive, healthy and tasty pickles and many other similar products considering the growing needs of both domestic and international market. Each and every item out of our product range has been made with great skill and hygienic standards so that everyone from youth to house wives can use and enjoy Shan’s unique taste. Major factors considered are

  • taste
  • aroma
  • hygiene
  • packaging quality and convenience

Customers usually have involvement for pickle’s taste, ingredients and hygiene. Their decisions are based on promotions or word of mouth this is because they are familiar with that particular product which in our case is Shan. Dissonance – Buying Behavior.

THE MARKET

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SLIDE 6

Chapter: Situation Analysis

3

With its new range of pickles, Shan has mainly targeted the urban market of Pakistan and aims to penetrate globally where many Indians and other Asians brands of similar offering products are also in completion. Similarly many local, both branded and unbranded products are in competition.

Geographic Density Urban and Metropolitan cities Local Karachi, Lahore, Islamabad, Peshawar, Quetta International Dubai Demographics Gender Male, Female Age All Social class Middle and Upper Income More than Rs.10,000 Occupation Working Women, House wives, Professional, students Psychographic Personality Those interested in traditional food items in accordance with new modern packaging etc.

MARKET TREND

Although fast food and other untraditional food products are gaining popularity in Pakistan, yet local and traditional items are no way lagging behind in competition and people are still looking for different local food items. Shan’s Pickles provides a unique combination between tradition and modernization and hence serves the needs of urban population.

MARKET GROWTH

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Chapter: The Company

4

For the last three years there has been a growth rate of 2% with consumption increasing from 7700 tons to more than 8200 tons. There is also increasing trends in northern and central regions of the country were Shan’s market share has increased by 2%

SUPPLY CHAIN CHANNELS AND LOGISTICS

Following are the Improvement and targets required in the SCC&L at the Trade Level.

  • 50,000 outlets to be covered nation wide
  • Focus on timely and even distribution in higher contributing regions: Karachi & North
  • Ensure effective distribution all year round; not just in season

THE COMPANY

COMPANY PROFILE

Supplier Shan Foods Manufacturing Units and Wearhouses Karachi Central South North Others

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Chapter: The Company

5

Established in 1981 Shan Foods (Pvt) Ltd. Has prided itself in hiring the most talented and educated people of the country to achieve this. The Company is continuously emphasizing on Human Resource Development through various Performance Management systems Information Induction Schemes and Employee of the Quarter Achievement Award in addition to these is the Company enhanced and improved training Development plan. Thousands of individuals have benefited from these programs which are ran on a regular basis in the company With the competitive environment becoming more challenging for corporate survival it is absolutely essential to hire and retain positive people who contribute to the overall growth of the company country and the community at large area of 100,000 sq. ft. is equipped with latest in-house lab facilities, which scrupulously tests and analyzes each product right from the ingredient stage to finished form.

BACKGROUND

From 25 years ago Shan took an step in the field of spices it started from single room initially family and relatives know about it then some other strangers also comes towards its taste like they get orders from distant relatives, friends, acquaintances and even perfect strangers started to arrive. Their main focus to produce ingredients for local people who close to food taste and quality that’s why recipe mixes found their way in international market.

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.

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Chapter: The Company

6

FULLY EQUIPPED, MODERN FACILITIES

The Production department, well equipped with state-of-the-art machinery ensures manufacturing of top quality products.

FINAL ROUTE TO PERFECT CREATION

All their efforts are dedicated to ensure the consistency of wide range of their products with well equipped state-of-the-art production techniques at every stage so that they remain at the high eminence which Shan has been known to maintain. Overtime there production techniques have improved to keep up with the ever evolving market and to make sure that there customer’s satisfaction is always guaranteed.

PRODUCT OFFERING

It offers products in three SKUs

  • Jar
  • Bottle
  • Pouch

It has many variants

  • Mixed pickle
  • Mango
  • Lemon
  • Chili
  • Garlic
  • Hyderabadi

DIFFERENTIATION AND POSITIONING

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SLIDE 10

Chapter: The Company

7

Its basic differentiation is

  • Unique Taste
  • Best selected raw materials
  • High quality vegetable oil
  • New contemporary packaging

It position’s itself as Decision maker

  • Housewives
  • Young Girls/newly weds
  • Males

Consumers

  • Families including kids and other family members
  • Bachelors
  • Invitees of a gathering

SWOT ANALYSIS STRENGTH

  • New Round Bottles enhance visibility on the shelf
  • Improved product quality
  • Selection of best ingredients and raw materials; superior quality vegetable oil
  • New contemporary style packaging
  • Potential of growth & expansion in the category
  • No known No.2 brand in the pickle category after National; Shan pickles can attain

leadership position in a few years time with due support & focus given

  • Regular accompaniment with less spicy food (daal chawal, sabzi, halwa puri, kachori,

tehri, paratha, etc)

  • Higher consumption (as regular food item) by pathans
  • Increases profitability margins
  • Stronger in export market

WEAKNESS

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Chapter: The Company

8

  • Issues at trade level
  • Negligible focus on ATL & BTL activities
  • Image distorted due to previous leakage problems in square bottles
  • Product darkness issues
  • Weaker distribution
  • Less focus on merchandising; product availability & visibility

OPPORTUNITIES

  • Institutional packaging
  • Focus towards launching new potential sku’s (half Kg jar, 10 kg bucket, stand alone

pouches)

  • Introducing new variants in export
  • Huge untapped market potential
  • There is scope to convert unbranded pickle market into branded by creating awareness
  • f using hygienic and packaged pickles
  • Can penetrate into rural by focusing pouches
  • Capture Competitions share by improving distribution, generating consumer trials &

aggressive promotion

  • Trend of making pickles at home has almost finished due to increasing working women

and cooking skills being not transferred from generation to generation anymore

THREATS

  • National as the biggest competitor with a huge market share
  • Huge unbranded pickle market (75%)
  • Increasing consumption of other accompaniments (ketchup, chutneys) with food at the

cost of pickles

  • Changing lifestyles; more incitement towards international food cuisines and thus

diverting away from traditional food like daal and sabzi

  • Increasing trends of sauces (white sauce, mustard sauce)

COMPETITION

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Chapter: Marketing Strategy

9

Shan has have completion from both branded and unbranded products in pickle’s category. Its main competitor and leader of branded market is National.

MARKETING STRATEGY

Shan Food strives to be the premier and delighted provider of Pickle experiences for the targeted market in the areas covered. The marketing strategy, efforts to successfully converse, the unique value and philosophy of the brand. This strategy redefines the focus from the "cost" problem to the benefits of exclusive products. The marketing strategy will carry on to recognize the requirements of the market and communicate with them in the most positive and effective manner possible. Current efforts continually endeavor to understand how Shan pickle can maintain the quality and integrity of the Brand within the finite financial resources. This challenge is ever-increasing. As costs carry on increasing in a number of areas, the expectations and demands of our customers do as

  • well. Shan is constantly working to improve the products through enhancements and changes in its

arrangement and implementation. Excellence in Quality and efficiency in taste are just two goals of these transformations.

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Others (32%) National (60%) Shan (8%)

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Chapter: Marketing Strategy

1

The growth stratagem is based on constant attention to the quality of the products in combination with identifying opportunities to develop the distribution wherever possible. Recent penetrations, in international areas such as Dubai, USA, UK, and far eastern countries, present complex challenges for the entire Shan business.

VALUE PROPOSITION

Shan does much more than simply provide apparel with quality and taste to the consumer, it provides the significant benefits of expressing, with distinguished taste, liberating eating, and empowering target market with the confidence to take challenges, that are associated with individuals’ involvement in house, hotel and professional places. These benefits value higher as the value we ask for the

  • brand. Shan pickle keeps itself amongst the high end brands with similar products, in the market,

keeping itself a bit different by its strategy. Primarily, the marketing strategy made and implemented in the past few years, have raised the brand value amongst the top brand. But now Shan needs to distinguish itself and exploit the uniqueness of the brand. The whole marketing mix of Shan Food is designed in away to set high quality and standards in the mind, customers are convinced that what they get is more then what they pay. The new endeavor should be to set an image in the minds of the customers about the importance of “Being Pakistani and Buying Pakistani” and that our brands can outshine internationals ones.

CRITICAL ISSUES

Our strengths are impressive. Our weaknesses are identified and have potential solutions. Shan Food could be described as in a "speculative" situation. We are presented with numerous opportunities and also have threats that present a level of risk. However, we have a chance to experience large returns on

  • ur efforts if we can continue to capture the entire market share of the targeted segment and are not

negatively impacted by the alternative products in our market. We are well positioned in the market. We have the ability to continue to offer the greatest value and we take advantage of our economies of scale.

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Chapter: Marketing Strategy

1 1

The critical issues include the following:

  • Cost of packaging material (especially plastic) is becoming expensive.
  • Competitor has a huge, state of the art production plant, equipped with modern technology and

use steam boilers instead of traditional cooking methodologies that brings efficiency, improves production quality, saves time and caters effectively to meet bulk orders.

  • Due to political instability & war against terrorism, the economic conditions of the country have

adversely deteriorated.

FINANCIAL OBJECTIVES

  • 1. Raise Contribution Margin to a minimum level of PKR 20,000,000 within the next fiscal year.
  • 2. Double the Brand Value within next two years.
  • 3. 15% increase in Production and reduce Direct Sales Costs.

MARKETING OBJECTIVES

The objective is to provide quality and tasty products with this valuable experience of exclusiveness, liberty and inner freedom to the target market. The pickle product of Shan Food is unique and requires stimulated exploitations.

  • 1. We need to expand and penetrate into the market in major cities of Pakistan.
  • 2. We need to establish the brand as trend setters.
  • 3. We need to position the brand in the customer mind as the exclusive, and the only brand.
  • 4. We need to understand the changing preferences and tastes of the market.

TARGET MARKET STRATEGY

Females, house wife, youth are the major consumers of pickle Product, therefore, the target market for Shan Food continues to be with them, who are involved in educational, social and startup professional activates and located in rural and major Metro – Cities. To increase the share Target Market

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Chapter: Marketing Mix

1 2

Shan Food need to focus on their needs and the positioning they have for the brand. Shan Food is at the growth stage with pickle product; therefore it requires a huge promotion, to get lime light. This promotion will not be persuasive at all. On the other hand it will exploit the brands exclusiveness.

MESSAGING

The core message of Shan Food is one of value: Shan Food design philosophy is to empower the customer with a quality statement to delighted and tasty.

BRANDING

The Shan Food brand communicates the complete taste of pickle, building up an outstanding standardized statement. The brand embodies the values that we believe and focuses on bringing out the Inner freedom and self confidence in the customer. There are six broad categories of varieties Shan deals in including recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts. In pickle Shan has broad category in which mango, lemon, mix, carrot pickles packages are included.

MARKETING MIX

Shan Foods has premium quality in food and its derived products especially in market of spices. Shan food is one of the leading food industries in Pakistan. Shan foods have developed a complete distinctive name of food industry in Brand Marketing.

PRODUCT (PICKEL)

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Chapter: Marketing Mix

1 3

The products of Shan foods itself are the key component to our marketing mix. Our product should be our best advertisement. Our different products in foods like wide range of spices, sauces, pickles etc should be competent in this food industry. The products (Pickle) are defined with their specifications in the given chart:

1 kg Jar Glass Bottle Pouch 400gm jar 10 kg Bucket

New Standardized Labels New tray design New Standardized Labels New tray design Launch 3 new variants (Kasaundi, Ginger & carrot pickles) in export Pouch material change Carton & separators material change (durable & strong) New Creative Design Introduce ½ kg pouch Launch of New SKU for mixed pickle New standardized labels New Tray design Mixed pickle for commercial use

PACKAGING

Shan food has mainly focus on packaging. They introduced different packaging style in this

  • product. Their Specifications are as under:

Jar Bottle Pouch 400 gm Jar 10 kg Bucket

Primary packaging: Primary packaging: Primary packaging: Primary Packaging: Red color bucket with lid & steel

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Chapter: Marketing Mix

1 4

Plastic Jar, yellow cap, inside poly & neck sleeve Tertiary packaging: 3 ply corrugated, E-type fluting, 6 units in each tray, shrink wrap Round Glass Bottle, Golden cap & neck sleeve Tertiary Packaging: 3 ply corrugated, E-type fluting, 12 units in each tray, shrink wrap Plastic stand alone pouch Tertiary Packaging: 3 ply Master Carton, Honey comb (separators), 36 units in each tray Plastic jar, yellow cap, inside poly & neck sleeve Tertiary Packaging: 3 ply corrugated tray, E-type fluting, 12 units in each tray, shrink wrap handle,

  • rangish/yellow

color screen printing, inside poly, hole punched on both sides and sealing through cable ties

PRICING

Pricing Strategy for Shan food is very similar to national foods because there is the only one food industry that is national foods has the largest market share in this sector and it is the actual competitor of Shan foods. So they develop their prices for pickles very similar to Shan foods the given table shows the prices of pickles of Shan foods in comparison of national foods:

Shan Foods (Pickles) National Foods (Pickles) SKU D.P (Exclusive

  • f GST & SED)

T.P New R.P R.P

Bottle 330 g 43.8461 57.9323 70 70 Garlic Bottle 330 g 63.9801 84.5346 95 85 Jar 1 Kg 114.4908 151.2725 180 184 Pouch 200 g 20.2367 26.7380 30 30 Jar 400 g 80 85 Bucket 10 kg 689.73 863.64 950

PLACEMENT

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Chapter: Marketing Mix

1 5

Product Placement is one of the advertising way of placing product at different stores and its availability is also mandatory, Shan pickles are given in the chart that where these are available:

Jar Bottle Pouch 400gm Jar 10 kg Bucket

Hyper Markets Key Accounts Utility stores General Stores Bakery Kiryana Stores Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana Stores Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana Stores Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana stores Hyper Markets Horeca

PROMOTION

Shan foods have adopted BTL as well as ATL activities for promotion purpose to their pickle

  • products. The given chart defines clearly the activities as:

ATL Activities BTL Activities

New thematic campaign: Develop thematic campaign for increasing Shan pickle category awareness, highlighting the entire range and product usage

At Consumer level:

For Bottle,1 kg & 400gms Jars :

  • To create trial generation through product

demonstration in hotels/restaurants

  • Content Branding in cooking shows
  • Developing information leaflet

(mentioning entire range, available SKU’s and usage of pickles with different food

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Chapter: Marketing Mix

1 6

Tactical for promoting 400 gm jar: Tactical for promoting 400 gm jar & 200 gm pouch

  • f mixed pickle, creating awareness of this SKU

and to generate trials Different Mediums of Advertising: TV channels (entertainment, infotainment, regional, news channels) & cable Radio Spots Print Ad (Urdu and English newspaper, magazines) POS Material items)

  • To be sold at discounted rates at weekly

Bachat Bazar

  • Participation in exhibitions & events for

product display and generating sales

  • In-store trials through Category Captains

for conversion At trade level: For Bottles:

  • Improved focus on merchandising
  • Product to be made available with

complete range

  • Branding at outlets

For Jars:

  • All 3 variants to be made available in 1 Kg

Jar

  • On average 5 units of 400 gm mixed pickle

jar to be made available at each outlet For Pouches:

  • On average, 6 units of 200 gm pouch to be

made available at each outlet

PEOPLE

Sales team is divided into two parts:

  • One team dedicated for recipes
  • Second team is dedicated to other Shan food Portfolios

These Sales teams are being trained in their respective field to enhance their marketing skills and to attain the companies’ goal as well.

CATEGORY GOALS

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Chapter: Controls

1 7

  • Revamp Packaging layout and format
  • Extend category by launching new variants (export only) and SKU’s that can turn out to

be potential (400g jar, ½ kg stand alone pouches & 10 kg bucket)

  • Achieve at least 25% market share in the category in the local market in 2 years time

Focus more on SKU’s that gives incremental sales volume (buckets) and SKU’s that contribute to the major chunk of the category (Jars/ Pouch packs)

CONTROLS

The purpose of the Shan marketing plan is to serve as a guide to the staff, the Board of Directors, and the volunteers to continue to improve the organization and its ability to provide quality food items to customers. We must take action to accomplish our goals. Failing to implement even one of the programs could be devastating to our success.

IMPLEMENTATION

Shan marketing team will conduct weekly Milestones Meetings with the Stakeholders, to review current milestone status, funding status, and status of the actual programs. For Shan, it's critical that there is consistent focuses on implementation in order to not only maintain strong programs, but to maintain strong relationships with customers.

KEYS TO SUCCESS

  • Expand into new areas within Pakistan, by new varients and launching campaigns.
  • Leverage the growth offered by the increasing brand awareness.
  • Identify additional Market segment to support future growth and offer wider range of

Pickles.

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Chapter: Controls

1 8

  • Continue to develop.

MARKET RESEARCH

An effective Market Research can be developed by gathering Data of various customers and

  • retailers. Research method, which will be adopted to gain customers life time value. Whereas

previous researches were conducted by following methods.

  • Initial Question Results -- The staff notes customer responses to the "How did you hear

about us?" question.

  • 76% Answers: “from Peers”
  • 12% Answers: “TV Advertisement”
  • 12% Answers: “Various Events”

We attempt to correlate that with our advertising and promotional activities and referral- generation programs.

  • Suggestion box -- The suggestion box is another method to gain additional information

from customers. Some of the most productive questions are:

  • What suggestion do you have to improve the pickle?
  • Why did you use this specific product?
  • What other products would you like to have available from Shan?
  • Competitive Buying -- We continually buy other food Products of competitive brands.

This is to gain Customers Insight. We visit each store in our market at least once each quarter for competitive information, we visit stores in the Karachi and Lahore markets for merchandising and buying insight.

CONTINGENCY PLANNING

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Chapter: Controls

1 9

The following lists, in order of probability beginning with the highest potential for change that will impact this marketing plan, the future of Shan.

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10/4/2012 1

Agenda

INTRODUCTION BRAND ASSESMENT 2 1 MARKETING MIX SWOT MARKETING STRATEGY 6 5 3
  • Shan foods came into existence in 1981.
  • Start the operation from a single room.

HISTORY

  • masala was backed by the whole range of spices.
  • Re-Position the BRAND from masala to whole range
  • f Spices.
  • Got the international popularity in around more then 60

countries.

  • six broad categories including recipe mixes, plain

spices, dessert mixes, basmati rice, pickles and salts.

Mission & Vision Statement

“To continuously develop and produce quality products that meet the customers and markets demands, compatible with

Mission

“to be a dominant global player in food products and socially responsible

Vision

1 2 applicable regulatory requirements. To be a consumer oriented company with keen insigne of food products ensuring quality panty consistency and authentic taste to
  • perate with state of the art technology to
  • btain optimum results and retain highest
quality standard thrived efficient and motivation human resource and inculcate in them a sense
  • f
participation and proved for personal goals and development.”

and socially responsible company that attains its quality standards so that Shan stands for tradition, trust and good taste.”

Always use aggressive strategic planning. Strategy perspective Target Customer

Shan Foods always have aggressive strategy to sell as much as they can by setting price parity with the cost and keeping market price in mind High volume is

1

Shan is capturing middle class who can’t afford restaurant or

Shan Foods is present in 6 broad food categories which are as follows:

  • Recipe Mix
Shan is Thinking Globally, Act Locally 3 Shan has SIX broad categories Product Mix

price in mind. High volume is always the key strategy.

2

who can t afford restaurant or prefer to eat home

  • Recipe Mix
  • Plain Spices
  • Dessert Mixes
  • Basmati Rice
  • Pickles
  • Salts

Credits To Shan Food

tShan has a separate Sales department focusing on International Modern Trade (IMT) and Local M d T d (LMT)

Sales Department Shan Revenue

In Pakistan alone Shan has 500 distributors; from Karachi to Skardu. The sales force
  • f
Sh li it Distribution Network The estimated marketing budget for Shan is Rs.100 million for all their ATL and BTL activities in th 2009 1 1 1 Modern Trade (LMT). This department maintains direct relationships with variety of shops to meet their customized requirements Shan supplies its products to these distributors and some direct distribution is also done mainly in Karachi market. the year 2009 2 The company does most of its marketing on seasonal basis especially before and during Ramadan and near Eid 2
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SLIDE 24

10/4/2012 2

Karachi 23% South 7% Central North 56%

Shan Pickle Regional Contribution in 2008-09

Karach i South Central

Karachi 21% South 5% Central North 58%

Shan Pickle Regional Contribution in 2009-10

Karachi South Central

Region wise Growth Analysis for the period 2008-2010

40% 50% 60% Karachi & South Regions have lost 2% share each; whereas Central & North Regions have gained 2% share each, over the period of 2 years from 2008‐2010

Central 14%

North

16% 58%

North 0% 10% 20% 30%

Karachi South Central North

2008‐09 2009‐10 years from 2008 2010

Brand Assessment

Brand Vision

Brand Association

Tantalizing taste Availability of exciting variants Pouch for generating trials of glass bottles

Major accompaniment with non‐meat food items Adds flavor to less spicy food and enhance taste Good for digestion of food

Happiness Self satisfaction

Brand Persona

Female

Age 18‐30 years

graduate

Shan Pickle Income Class A/B

Young house wife/mother g

Unique Taste Best selected raw materials High quality vegetable oil

Brand Positioning

Point of Difference

Point of Difference

Target Market

Decision maker Housewives Y Gi l / l d

Business Definition

Enhances taste, adds flavor, enriches food experience making it “Just High quality vegetable oil New contemporary packaging

Difference Business Definition

Target Market

Young Girls/newly weds Males Consumers Families including kids and other family members Bachelors Invitees of a gathering food experience, making it Just Perfect”
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SLIDE 25

10/4/2012 3

Understanding Target Market

Shan Pi kl

Young Girls

I like to have chat pata achaar with food to

Pathan Consumers

For me, every food is incomplete without pickles

ercial use Pickles

enhance its taste & flavor

Males

I only eat daal chawal, sabzi, and other plain food just with pickles to add flavor in my meal

House wives

I like to consume pickles since it has been a tradition to use it with less spicy food and my family loves to have it at meal time

Wholesellers

Perfect replacement of unbranded pickles ; it is comparatively hygienic in comparison to khula achaar

Comme

House Hold use

National Shan Market Share 65% 7-8% Regional Strength Nationwide Karachi & North Regional Weakness Not as such Punjab & rest upcountry Target Market Females/males, 18-35 years age, belonging to SEC A-D Females/males, 18-35 years age, belonging to SEC A-C Point of Difference First mover advantage, unique taste, new packaging Challenger brand, unique taste, improved & contemporary packaging, strong in exports SKU Strength Pouch & bottle bottle Variants Strength Mixed & Mango Mixed Variants Range Bigger range Shorter Range Technological Edge State of the art production plant for pickles; steam boilers Traditional cooking methodologies Product Development Efficiencies Average Average

SWOT SWOT

Marketing Mix

Category Goals

Revamp Packaging layout and format Extend category by launching new variants (export only) and sku’s that can turn

  • ut to be potential (400g jar, ½ kg stand alone pouches & 10 kg bucket)

Achieve at least 25% market share in the category in the local market in 2 years tim Achieve at least 25% market share in the category in the local market in 2 years tim Focus more on skus that give incremental sales volume (buckets) and skus that contribute to the major chunk of the category (Jars/ Pouch packs)

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SLIDE 26

10/4/2012 4

Product 1 kg jar Glass bottle Pouch 400 gm jar 10 Kg Bucket

New standardized Labels New Standardized Labels  Pouch material change  Carton & separators material Launch of New Sku for mixed pickle M ixed pickle for commercial use New tray design New tray design  Launch 3 new variants (Kasaundi, Ginger & carrot pickles) in export p change (durable & strong)  New Creative Design  Introduce ½ kg pouch New standardized labels New Tray design commercial use

Packaging

Jar

 Primary Packaging: Plastic Jar, yellow cap, inside poly & neck sleeve

Bottle

 Primary Packaging: Round Glass Bottle, Golden cap & neck sleeve

Pouch

 Primary packaging: Plastic stand alone pouch  Tertiary Packaging:

400 gm Jar

 Primary Packaging: Plastic jar, yellow cap, inside poly & neck sleeve  Tertiary Packaging: 3 ply corrugated, E-type fluting, 6 units in each tray, shrink wrap sleeve  Tertiary Packaging: 3 ply corrugated, E-type fluting, 12 units in each tray, shrink wrap  Tertiary Packaging: 3 ply Master Carton, Honey comb (separators), 36 units in each tray sleeve  Tertiary Packaging: 3 ply corrugated tray, E-type fluting, 12 units in each tray, shrink wrap

10 kg Bucket

 Red color bucket with lid & steel handle, orangish/yellow color screen printing, inside poly, hole punched on both sides and sealing through cable ties Shan National SKU D.P (Exclusive of GST & SED) T.P New R.P R.P Bottle 330 g 43.8461 57.9323 70 70 Garlic Bottle 330 g 63.9801 84.5346 95 85

Price Structure

Jar 1 Kg 114.4908 151.2725 180 184 Pouch 200 g 20.2367 26.7380 30 30 Jar 400 g 80 85 Bucket 10 kg 689.73 863.64 950

Placement

Jar Ensure Availability in 50,000 outlets  H M k t Bottle Ensure Availability in 50,000 outlets Pouch Ensure Availability in 30,000 outlets  400 gm jar  Ensure Availability at 30,000 outlets 10 Kg Bucket

 Ensure Availability

at wholesale outlets  H  Hyper Markets  Key Accounts  Utility stores  General Stores  Bakery  Kiryana Stores  Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana Stores Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana Stores  Hyper Markets Key Accounts Utility Stores General Stores Bakery Kiryana stores  Horeca Hyper Markets

At Trade Level At Consumer Level At Product level

Improve distribution Availability at key/high volume outlets Improve awareness levels

  • f the brand

Generate trials that will help in converting major differentiating sku’s that can become purchase drivers packaging standardized Improve shelf share Improve shelf visibility Effective use of Promotional material Point of Puchsae p g consumers from current brand to Shan pickles Improve penetration by promoting smaller sku’s packaging standardized in local as well as export market cut down cost of packaging material

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At Trade level

50,000 outlets to be covered nation wide  Focus on timely and even distribution in higher contributing regions: Karachi & North  Ensure effective distribution all year round; not just in season

Ensure availability at key/high volume outlets Improve distribution  Apply 80: 20 rule; 20% of high volume outlets

contribute 80% of the sales

 Instead of keeping only one kind of sku; ensure Improve shelf share Improve shelf visibility

p g y ; availability of entire rangest 25 variants should be present at the shelf Shelf hiring should be done in order to get better shelf visibility and space Merchandiser should be hired for shelf management Trade display competition can be held

Effective use of Promotional material as a reminder at Point

  • f Purchase

Options like shop branding, use of shelf talkers and other innovative materials/props should be explored in order to engage consumers

At Consumer level

 Mass media will be selected in improving awareness specially during season-Content branding will be preferred

  • ver RODP

Cable will be a preferred medium compared to satellite channels Radio & print will also be considered E-marketing (urban market) will be chosen for specific message to target audience (SMS, direct mail shots)

Improve Consumer awareness Improve penetration through smaller skus

Hoarding will be rented in major cities

Generate trials

Trials will be conducted among current category users through various activities like Home gatherings, cooking shows etc. Consumer offer can be designed to generate trials DDS , shop promoters etc

At Product level

Green range will be introduced (Chicken Hara Masala, Biryani Hara Masala, Fish Hara Masala, Harey Bharey Kabab, Tikka Hara Masala) Snack/fast food range will be launched (Nugget mix, Tempora mix, Burger Patty Mix, Croquettes mix, Broast mix etc) Create at least 2 major differentiating ranges that can become purchase drivers Packaging needs to be redesigned in a way that it should be acceptable both in local as well as export market (At least USA & UK) Work on dispenser -instead of corrugated it would be cardboard box Come up with a packaging that can be fit for local as well as export market Try to cut down cost of packaging material

S.No Pickle SKU Tray Size Jul-10 Aug-10 Sep-10 QTR 1 Oct-10 Nov-10 Dec-10 QTR 2 Jan-11 Feb-11 Mar-11 QTR 3 Apr-11 May-11 Jun-11 QTR 4 Total Vol-Kg 1 Mix Pickle 320 12 6,825 2,925 2,340 12,090 1,560 1,560 1,560 4,680 1,755 1,755 2,925 6,435 5,850 4,875 3,315 14,040 37,245 147490.2 2 Mango Pickle 320 12 875 375 300 1,550 200 200 200 600 225 225 375 825 750 625 425 1,800 4,775 18909 3 Hyderabadi Pickle 320 12 525 225 180 930 120 120 120 360 135 135 225 495 450 375 255 1,080 2,865 11345.4 4 Lemon Pickle 320 12 175 75 60 310 40 40 40 120 45 45 75 165 150 125 85 360 955 3781.8 5 Chilli Pickle 310 12 175 75 60 310 40 40 40 120 45 45 75 165 150 125 85 360 955 3781.8 6 Garlic Pickle 320 12 175 75 60 310 40 40 40 120 45 45 75 165 150 125 85 360 955 3781.8 Glass Bottle-Total (25%) 8,750 3,750 3,000 15,500 2,000 2,000 2,000 6,000 2,250 2,250 3,750 8,250 7,500 6,250 4,250 18,000 47,750 189090 7 Mix Pickle 1000 6 16,363 7,013 5,610 28,985 3,740 3,740 3,740 11,220 4,208 4,208 7,013 15,428 14,025 11,688 7,948 33,660 89,293 535755 8 Mango Pickle 1000 6 1,925 825 660 3,410 440 440 440 1,320 495 495 825 1,815 1,650 1,375 935 3,960 10,505 63030 9 Hyderabadi Pickle 1000 6 963 413 330 1,705 220 220 220 660 248 248 413 908 825 688 468 1,980 5,253 31515 Jar 1 Kg-Total (55%) 19,250 8,250 6,600 34,100 4,400 4,400 4,400 13,200 4,950 4,950 8,250 18,150 16,500 13,750 9,350 39,600 105,050 630300 10 Pickle Pouch (8%) 200 36 2,800 1,200 960 4,960 640 640 640 1,920 720 720 1,200 2,640 2,400 2,000 1,360 5,760 15,280 110016 11 Mixed Pickle (5%) 400 12 1,750 750 600 3,100 400 400 400 1,200 450 450 750 1,650 1,500 1,250 850 3,600 9,550 45840 12 Mixed Pickle Bucket (7%) 10000 1 2,450 1,050 840 4,340 560 560 560 1,680 630 630 1,050 2,310 2,100 1,750 1,190 5,040 13,370 133700 Total Pickle Category (100%) 35,000 15,000 12,000 62,000 8,000 8,000 8,000 24,000 9,000 9,000 15,000 33,000 30,000 25,000 17,000 72,000 191,000 1108946 OLY Growth 6% 82% 50% 26% 413% 387% 596% 451% 208% 170% 92% 135% 141% 101% 26% 92% 57%