SHAN FOODS PICKELS - · PDF file4/2/2013 · Marketing Plan 2011 SHAN FOODS...
Transcript of SHAN FOODS PICKELS - · PDF file4/2/2013 · Marketing Plan 2011 SHAN FOODS...
Mar
keti
ng P
lan
2011
SHAN
FO
OD
S PI
CKEL
S
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
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
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
Chap
ter:
Exec
utiv
e Su
mm
ary
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.
Chap
ter:
Intr
oduc
tion
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
Chap
ter:
Situ
atio
n An
alys
is
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
Chap
ter:
The
Com
pany
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
Chap
ter:
The
Com
pany
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.
Chap
ter:
The
Com
pany
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
Chap
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The
Com
pany
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
Chap
ter:
The
Com
pany
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
of 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
Chap
ter:
Mar
ketin
g St
rate
gy
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.
0
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%)
Chap
ter:
Mar
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g St
rate
gy
10
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
our 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.
Chap
ter:
Mar
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11
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
Chap
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Mar
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12
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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Mar
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13
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
Chap
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Mar
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14
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,
orangish/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 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 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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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
Chap
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16
Tactical for promoting 400 gm jar:
Tactical for promoting 400 gm jar & 200 gm pouch
of 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
Chap
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Cont
rols
17
• 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.
Chap
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Cont
rols
18
• 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.
o 76% Answers: “from Peers”
o 12% Answers: “TV Advertisement”
o 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:
o What suggestion do you have to improve the pickle?
o Why did you use this specific product?
o 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
Chap
ter:
Cont
rols
19
The following lists, in order of probability beginning with the highest potential for change that
will impact this marketing plan, the future of Shan.
10/4/2012
1
Agenda
INTRODUCTION
BRAND ASSESMENT2
1
MARKETING MIX
SWOT
MARKETING STRATEGY6
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 of 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 producequality products that meet the customersand markets demands, compatible with
Mission
“to be a dominant globalplayer in food productsand socially responsible
Vision
1 2
applicable regulatory requirements. To bea consumer oriented company with keeninsigne of food products ensuring qualitypanty consistency and authentic taste tooperate with state of the art technology toobtain optimum results and retain highestquality standard thrived efficient andmotivation human resource and inculcatein them a sense of participation andproved for personal goals anddevelopment.”
and socially responsiblecompany that attains itsquality standards so thatShan stands fortradition, trust and goodtaste.”
Always use aggressive strategicplanning.
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, ActLocally
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 DepartmentShan Revenue
In Pakistan aloneShan has 500distributors; fromKarachi to Skardu.The sales force ofSh li it
Distribution Network
The estimated marketing budget for Shan is Rs.100 million for all their ATL and BTL activities in th 2009
111
Modern Trade (LMT).
This department maintains direct relationships with variety of shops to meet their customized requirements
Shan supplies itsproducts to thesedistributors and somedirect distribution isalso done mainly inKarachi market.
the year 2009
2 The company does most of its marketing on seasonal basis especially before and during Ramadan and near Eid
2
10/4/2012
2
Karachi 23%
South 7%
Central
North 56%
Shan Pickle Regional Contribution in 2008-09
Karachi
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 VisionBrand 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 yearsgraduate
Shan Pickle Income
Class A/BYoung house
wife/mother
gUnique Taste Best selected raw materialsHigh quality vegetable oil
Brand Positioning
Point of Difference
Point of DifferenceTarget Market
Decision makerHousewivesY Gi l / l d
Business Definition
Enhances taste, adds flavor, enriches food experience making it “JustHigh quality vegetable oil
New contemporary packagingDifference
Business Definition
Target Market
Young Girls/newly wedsMales
ConsumersFamilies including kids and other
family membersBachelorsInvitees of a gathering
food experience, making it Just Perfect”
10/4/2012
3
Understanding Target Market
ShanPi kl
Young Girls
I like to have chat pataachaar with food to
Pathan Consumers
For me, every food is incomplete without pickles
ercial use
Picklesenhance its taste & flavor
Males
I only eat daalchawal, 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 khulaachaar
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 MarketFemales/males, 18-35 years age, belonging to SEC A-D
Females/males, 18-35 years age, belonging to SEC A-C
Point of DifferenceFirst 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
SWOTSWOT
Marketing MixCategory Goals
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 timAchieve 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)
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 useNew tray design New tray design
Launch 3 new variants (Kasaundi, Ginger & carrot pickles) in export
pchange (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 MarketsKey AccountsUtility StoresGeneral StoresBakeryKiryana Stores
Hyper MarketsKey AccountsUtility StoresGeneral StoresBakeryKiryana Stores
Hyper MarketsKey AccountsUtility StoresGeneral StoresBakeryKiryana stores
Horeca
Hyper Markets
At Trade Level At Consumer Level At Product level
Improve distribution
Availability at key/high volume outlets
Improve awareness levels of the brand
Generate trials that will help in converting
major differentiating sku’s that can become purchase drivers
packaging standardizedImprove shelf share
Improve shelf visibility
Effective use of Promotional material Point of Puchsae
p gconsumers 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
10/4/2012
5
At Trade level50,000 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 of Purchase
Options like shop branding, use of shelf talkers and other innovative materials/props should be explored in order to engage consumers
At Consumer levelMass media will be selected in improving awareness specially during season-Content branding will be preferred over 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 SKUTray 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%