Acknowledgement We have the pearl of our eyes to admire blessing of the compassionate andomnipotent because the words arebound, knowledge is limited and time is shortto express His dignity. It is one of the infinite blessings of almighty ALLAH thatHe bestowed us with potential and ability to complete the present training andmake a material contribution towards the deep oceans of knowledge.First we avail this opportunity to bow our head before ALLAH almighty inhumility who given us the wisdom and perseverance for completing this piece ofreport.We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch.We feel highly privilege to ascribe the most and ever burning flame of mygratitude and deep scene of devotion to the Prof. Irfan Iqbal who taught us“business project” with heart and also gave a guideline to this report. JUNE 2009 Table of Contents Company Profile…………………………………………………………..7 Board of Directors……………………………………………………………….7 Audit Committee……………………………………………………………….7 Director & company Secretary……………………………………………….. 7 Auditors…………………………………………………………………………7 Chief Financial officer…………………………………………………………7 Legal Advisors…………………………………………………………………7 Brief History …………………………………………………………….8Vision & Mission Statement……………………………………………9Product Range……………………………………………………………10 Local Consumer Products…………………………………………………… Exports………………………………………………………………………… Process of making………………………………………………………. Fruit Juice - Production Process Flow………………………………………… Fruit juice production process ………………………………………………… Packing…………………………………………………………………………… Storage………………………………………………………………………….. Product Shelf life………………………………………………………………. RAWMATERIAL REQUIREMENT………………………………………………… Other Raw Material………………………………………………………. TECHNOLOGY AND PROCESSES………………………………………………. Indirect Competitors………………………………………………………… Shipping Units…………………………………………………………… . Nature of the product………………………………………………….... Competition of the Product ……………………………………………. The Target Market of the Product …………………………………….Machinery requirements………………………………………………… SECTOR & INDUSTRYANALYSIS……………………………………………… Sector Characteristics and overview…………………………………. Ingredients in Shezan Twist Juice (Product ………………………… Product Flavors Available……………………………………………. Marketing Mix………………………………………………………….. Product …………………………………………………………………… What Is "Product"? ……………………………………………………. Direct …………………………………………………………………………. .Market and Positioning Of the Product……………………………………….. Performance in the Market of the Product…………………………………… Pricing……………………………………………………………………….Placement ………………………………………………………………… The Channel of Distribution…………………………………………………. Current Price…………………………………………………………………… Price Control………………………………………………………………….. Pricing Strategy…………………………………………………………………. What Is "Price"?…………………………………………………………………. Distribution Strategy………………………………………………………… .. Factors Affecting the Price of Shezan Twist juice………………………… Differential Advantages the Company Have………………………. Pricing Objectives……………………………………………………………. .Distribution Areas…………………………………………………………… Place for storage……………………………………………………………… Demand increases…………………………………………………………… Logistics……………………………………………………………………….. The Company…………………………………………………………………… Suppliers…………………………………………………………………………. Internal environment……………………………………………………………. Promotion………………………………………………………………… Target Fragment…………………………………………………………………. Budget for Promotion…………………………………………………………. Customers………………………………………………………………………… Competitors………………………………………………………………………. Environmental Analysis………………………………………………………………. . squashes. The agriculture background of the Pakistani sponsors induced them toestablish this agro-based industry. In 1980-81 a separate unit was installed in Karachi which now catersfor Karachi. Shezan became pioneers in the field of converting fruits into pulps. and the advanced technology provided by the Americanpartners.A in1964 conceived Shezan International Limited as a jointventure. unmatched for their rich flavor and tasteThe Shahnawaz Group of Pakistan and Alliance Industrial DevelopmentCorporation of U. Over the centuries Pakistani experts have acquired and developed uniquestrains of exotic fruit varieties. Taking advantages of abundance of fruitsavailable in Pakistan. BCG Matrices……………………………………………………………….In 1971 the Shahnawaz Group purchased all the shares of Alliance IndustrialDevelopment Corporation with the permission of the Pakistan Government.Rec ommendations………………………………………………………… Brief History Shezan Company was incorporated on May 13. A new bottle filling plant was set up in1983 in Lahore unit increased the capacity five-fold. 1964 as a private limitedcompany. sharbats.SWOT ANALYSIS…………………………………………………………Conclusion…………………………………………………………………. Today Shezan is the largest food processing unit havingdeveloped and installed the capacity to meet the country’s and export needs.Internal environment…………………………………………………………….concentrates and juices. The Company has been steadily expanding its production capacity overthe years. jams pickles and preserves from fruits andvegetablesNature has blessed Pakistan with an ideal climate for a wide range of deliciousfruits. TheCompany has since shown sustained growth in both the domestic and exportsfields. Distributors……………………………………………………………………….S. Sindh and export demand. with the objectives as set out in the Memorandum of Association ingeneral and in particular to set up an industrial understanding for manufacture University Of Central Punjab PCITRAWALPINDI 7 of juices. An independent Tetra BrickPlant was commissioned in 1987 making us the leading manufactures withcomprehensive range of production in the fruit processing field in Pakistan . Shezan has an edgeover other with its own fruit farms.“To be known as leader of quality products in the region.” Product Range Shezan is producing a variety of quality products. We will accomplish this by maintaining atradition of pride in our products.these results will bederived from the dedicated efforts of each employee inconjunction with supportive participation from managementat all levels of the company .To pay its role in the economicdevelopment of the country and to enhance quality of life ofits people” Mission statement “Our mission is to provide the highest quality fruit andvegetable related juices and products to retail and foodservices customers. Currently Shezan is giving tough time toother fruit juice manufacturers due to its quality and huge export volume as wellas capturing local fruit juice market where it has competition with Nestle andHaleeb. growth through innovation. In itsactivities the company will pursue goals aimed at theachievement of profitable business . Shezan is largely consideredas market leader in fruit and vegetable processing industry. integrity in the management of our business andcommitment to team management and quality improvementprocess.Products can be divided into the following Local Consumer Products University Of Central Punjab PCITRAWALPINDI Types of Products Local Consumer ProductsExports 10 13-Ispaghol Exports .Dedication to quality is a way of life at our company. Initial preparatory processesfor all fruits will be similar. Fruit Juice . although differences in handling juice compositionarise in certain cases due to the nature of the fruit and percentage of pulpinvolved.Basically.Process of making Fruit juice production procedures involved in fruit juice manufacturing.Production Process Flow Production of fruit juices is a standardized process and type of technologydepends on type of fruits and scale of operations. as will be the last stages of juice/pasteurizationsection and packaging. preparation process of Twist juices involves the following steps:• Washing and cutting of fruits University Of Central Punjab PCITRAWALPINDI 14 • Boiling of fruit pulpI) Pulp Storage in TankII) Sugar Hopper • Pulp and ingredients mixing • Syrup Storage in Tank • Juice Preparation • Juice Storage Tank • Filling and Packaging . where it is heated to 90 o C to inactivate enzymesand living organism. any additives to the pulp are made atthis stage before it is pumped to syrup storage tanks.No. Packaging is done on imported machinery as it considered being highly sophisticated and hygienic Machinery Used -Fruit Juice Filling & Packaging Line S. Juice from the tank isready for packaging Packing The juice will be then packed in the quantities 250ml. before loading it into a juice storage tank. After pasteurization the juice passes through finalfiltration. Pulp is thenstored in the pulp storage tank. Pulp is then supplied to the mixing tank in thedesired quantity while in mixing tanks. Blended juice is thenpumped through pasteurizer.MachineCapacityLocal/Imported 1Tetra Pak –TBA 197500 packs of 250 ml/ hr Tetra Pak Storage .• Cooling and Storage University Of Central Punjab PCITRAWALPINDI 15 Fruit Juice Production Process After washing and cutting the fruit pulp is separated after that Pulp is shifted tothe boiler where it is cooked and shifted to the plate heat exchanger. fruit pulp is considered to be the principal component of the high quality fruit juice. therefore. however. following are the mainingredients which will be required for the juice production proposed for thisproduct. Fruit pulp could be purchased from open marketor directly from pulp producers. Prices for the fruit pulp have beencollected from the market and are given below: Other Raw Material The ratio and utilization of other raw material depends on what percentage ofpure juice the unit is going to produce. citric acid. sugar. Product Shelf life Twist Juice in 250ml serving packs have shelf life of less then 6 months. however. it would be safe to sign a contract ornegotiate with a pulp producer to insure the availability of pulp before thecommencement of production operations. RAWMATERIAL REQUIREMENT Raw material required for manufacturing fruit juice are fruit pulp.Products will be stored in cool dry store before distribution. preservatives and fruit flavors. this is not a good practice and therefore shouldbe avoided. however.food color. its continuous and within the required quantity availability willneed some advance planning. Although. juice manufacturersuse molasses to thicken the juice. Treated Water 75% Fruit Pulp 17% Sugar Citric Acid Fruit Flavor 8%-10% . All raw materials are easily available in the local market. yetdo not provide good quality and quantity of output. SECTOR & INDUSTRYANALYSIS S ECTOR C HARACTERISTICS AND O VERVIEW Agriculture sector highly depends on the weather circumstances. however. packaging and storage both local and importedmachinery can be used. Following machinery will be required for settingup a fruit juice plant: Fruit Juice Pre-Packaging Production Line Fruit Juice Filling & Packaging Line Fruit Juice Cooling and Refrigeration Machinery MACHINERY REQUIREMENT For the fruit juice production. for packaging it is proposed to use importedmachinery rather than local machinery which is although a low cost option. hence it could not be done by using localmachinery. Local packaging machinery reportedly give poorquality output especially for fruit juice packaging which is considered to behighly sophisticated and hygienic. God has giftedPakistan with several varieties of fruits and vegetables. Modern processing andpackaging techniques make seasonal fruits and . However. pulp processing and juice production could be done onlocally fabricated machinery.PreservativeMachinery required for the processing of fruit and juice packaging is availableboth local and imported. 6 NWFP 6. tubers. Spices Bulbs.vegetables available all yearround to almost all parts of the globe.2 . Vegetables.6 Sindh 8. fresh or preserved Fruits and nuts. the world horticulture industry is a $77 billionmarket comprising of the following sub sectors. fresh or preserved (excluding oil nuts) Fruit and vegetable juices (unfermented). Today. rhizomes of flowerings Cut flowers and foliage Provincial fresh fruits production share is provided below: Province % Share Punjab 59. Tropical fruit like mangoes can be enjoyed in temperate countries. Ingredients in Shezan Twist Juice (Product ) Energy127 calTotal Fat0. price.15 gm . vitamins andminerals . Fruit juice isstill one of the best ways to replenish the body's essential nutrients and it's anatural source of energy. places. It includes physicalobjects. Common people especially young generation isinclined to have ready to consume drinks.Balochistan 25. in addition hotels.0 gmProteins 0.6 "Marketing Mix is the set of controllable tactical marketing tools that areproduct. shezan`sTwist juices open the door to a whole new world ofpossibilities. acquisition. Available in easy to drink slim packingtwist juices are a must have in every household Nature of the product Everyone has their own ideas about replacing essential body fluids. persons. hospitals arealso expanding day by day where juices could be marketed successfully." PRODUCT What Is "Product"? University Of Central Punjab PCITRAWALPINDI Marketing Mix ProductPricePlacementPromotion 23\ "Anything that can be offered to a market for attention. organizations and ideas. use orconsumption that might satisfy a want or a need is a product. services.whether it's after exercise or just a tiring day at the office." Shezan Twist Comprising of a blend of different fruit juices. The firm blends these tools to producethe response it needs from the target market. placement and promotion. Raspberry. Competition of the Product .5-Mango Strawberry.Total Carb 32.5 gmSodium1.Pineapple.3.7 mg Percent daily values are based on 2000 calorie diet Product Flavors Available 1-Apple2. Colleges and Universities.6-Mango The Target Market of the Product The target market of Shezan twist juice includes teenagers. Basically theyare targeting the students of schools.4-Fruit punch.5 mg Sugar31 gmVitamin C5. 250 ml . 36 Packs per carton(6*6 Wrapped Packing) Market and Positioning Of the Product The market is highly saturated in the drink.12/. 15/- When we purchase 3dozen of 250ml .while the competitive price was Rs. which are ready to use Performance in the Market of the Product BrandMarket Share Nestle juice45%Country juice5%Tropico Juice 18%Shezan Twist juice35%International 02% Pricing What Is "Price"? Price is the value placed on goods and services. Pricing Strategy Shezan when introduced twist juice in the market set the price at Rs. Price is the amount ofmoney and /or goods needed to acquire some combination of another andits accompanying services. Current Price The current price of one 250ml pack of Twist is Rs. 10/-. This above average price was duethe better quality product and a new Juice brand by a well knows Juice Companyand Industry giant. They uselittle quantity of Fruit pulp in making the juice and charge very high price.90 15 2. Companies are given freehand in charging enormously high prices for processed food items.3.4.Product Quality Leadership Price Table with the Pure CompetitorName of the CompanyPrice Of the Juice .2.90 .To achieve a target return. Overall Distributor or Whole Seller Margin 07-10%Retailer’s Margin 12-15% SourcePurchasePriceSale PriceProfitSchool.468/Available Size of Shezan Twist Juice The Shezan Twist juice is available in only one size of 250 ml Price Control There are no price controls and this has happened after the introduction oflocal government system under the devolution plan.To maximize profit.90 Retailer 12.of Twist than the price of this is Rs.Market share Leadership 5. Colleges andUniversities 12 15 3 Whole Seller 12 12.10 Pricing Objectives The objectives of Festival Juices for pricing Juice Products are as follows:1.Stabilize prices to meet competition. roads are not in a good condition The un stable politicians.Nestle Juice Rs. 12/Tropico Juice Rs. which have positive and negative effect on theprice The labor cost is low in Pakistan as compare to the others The advertisement is increasing the cost price of it but this is necessary Due to increase in taxes the price of them is also increased . 18/Shezan Twist Juice Rs. They are using the expensive technology The transportation . 12/Factors Affecting the Price of Shezan Twist juice The following are the some factors that are affecting the price of Shezantwist juice. 15/Country juice Rs. they are using One of the oldest company in private sector They have their own plant of tetra packing PLACEMENT The distribution network includes the distributor then the wholesaler and in theend the retailer. Again benefits are provided on the achievement of the salestargets and timely delivery of products.They are using tetra packing which increase their cost Differential Advantages the Company Have The name of the Company Very Large capital in whole company The good reputation in the market The combination of Flavors Foreign technology . In some cases products are provided to big retailers by the distributor itself but mostly it is being purchased by theretailer from the wholesaler. In theShezan twist they are using the above channel fro distribution the product . Distribution Strategy Through the heavy advertisement the distribution can beaffected because the distribution mainly depends upon the demand. Lahore.c to make it easy to sell Distribution Areas They are distributing in major cities such as:City Name Distributors Lahore 200 Karachi 200 Islamabad 100 Total 500 Place for storage:They have the stores to store the juice packets before the juice goes fordistribution Demand increases They always have the backup store juice to fulfill this demand Logistics .Multan e.Some of people who wants to purchases very heavy amount of thetwist juice . they come to the company directly and buy which isrequired The whole seller are purchasing them for the resale able purpose butless then the first once They have Zonal offices in different areas such as Rawalpindi.t. they areworking on the daily bases They have large number of trucks to achieve all the things according totheir product For distribution they are always have the future planning Promotion Shezan is using following mediums for promotion of twist Billboards Television Radio Newspapers Broachers Internet They are doing these things according to the plans. for example .To deliver the right quality and quantity of the twist juice. They now wants to advertise the product more through media by usingthe famous people For the promotion of the product they are giving the free product in thestart of the season Large discount for the people who purchase the Shezan twist juicedirectly from the company and in large amount Giving free samples to the people who visit the company They are also arranging some charity shows in Karachi They have given a very large amount to the people who suffers form theearthquake in Pakistan Stale operations are functioning in which they are giving the free testingsamples There are spending a lot of money in the preparation of mosques There are giving free Translated Quran. which are in more than 150languages They are also working in a Islamic Jameet named Ahmediya Target Fragment The target fragment for the product s the people using juicesinstead of the soft drink like Coke and Pepsi Budget for Promotion . Karachi but they arenot handling the areas perfectly BCG Matrices Shezan twist juice is the star product in the season and when the season isof this becomes the Cash cow product/ SWOT ANALYSIS (ACCORDING TO THECOMPANY) .A.Electric Media 75%B. Lahore.Printed media25% Environmental Analysis 1)The Company:The people in the company they are not working as a team 2)Suppliers:Efficiency of the suppliers in the company is nice but required moreimprovement 3)Customers:The target market of the product is the teenagers mainly 4)Competitors:Nestle is the pure competitors of the Shezan twist juice 5)Internal environment:The internal environment is good but requires more changes 6)Technological :They are using the foreign technology which is their plus point 7)Marketing:Need to spend money field in marketing field 8)Distributors:The distributors are in the Islamabad. Strengths Conveniently placed factory Pure and natural products Qualified sales staff Strong financial backup Good distribution net work Effective advertisement campaign Weakness Due to high rate of taxes our process are higher Tax evaders sell product on much less prices and retailers blackmail forbetter profit margins Opportunities Expansion of distribution net work . Diversification of product Addition of new varieties Modification according to present requirement Threats Discount offered by competitors Low quality food products on cheap prices WTO Less awareness of health Nutritional facts of products with consumer SWOT ANALYSIS (ACCORDING TO THEGROUP) Discount offered by the competitors Conclusion According to our group mates after visiting the company and taking informationfrom the market we have concluded that:- . They are going good but have to improve internal environment They have to improve their distributor sector. Shezan is targeting youngsters as a potential and big market for itstwist juice so if company supply directly to the schools. Company OwnedDistribution House Another important recommendation we want to give is this that Shezanneed to come up with a different kind of packing. Quantity should be increased to 300ml and priceshould be Rs. 20/- . so they have to spend more money in theadvertising field They have to introduce New flavor In the market They can introduced these twist juices in 1 Liter packing They can introduce these juices also in powder form. They have to make new strategy for the competitors like Nestle They have large capital . colleges anduniversities it removes intermediaries and due to high profit ratio caféowners will promote Twist compared to other juices. To resolve this issue Shezan must introduce packing with cap onit in spite of using straw. Recommendations As we have mentioned that Shezan needs to improve its distributionstrategy. Juice packing with straw s not convenient for consumer as sometimes juice fell when we insert strawand sometimes some juice still remain in the pack that cannot come up withthe straw.