Marketing project on shakarganj Foods Limited

1. (Al-Fatiha-02) “Praise be to Allah, the Cherisher and Sustainer of the worlds”

2. ACKNOWLEDGEMENT We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge. First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report. 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 my gratitude and deep scene of devotion to the Prof. SajidaNisar who taught us “Principles of Marketing” with heart and also gave a guideline to this report. It would be an honor for us to thank respected NasirZuberi from sales department of Shakarganj Foods. We are immensely obliged to all our fellow students who guided us in making this report, without whose considerate attention and interest, it would be difficult for us to complete this report on time. Whatever we have learnt from them and this project report has put indelible impression on our mind. It is our conviction that this learning experience will always be a source of help in our practical life and professional career.

3. ABSTRACTPakistan is an agricultural country. According to Ministry of Food, Agriculture and livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry contributes 49% to the agriculture value and 11% to the GDP. Annual production of milk is 35.25 Billion liters in the country; But the Processed milk is only 4% of the total production.We are analyzing the marketing plan of Shakarganj which is a food and dairy products company. Our analysis of Shakarganj will include the current market situation and strategic analysis of the company. We will see the various strategies that can be used by them for improving their product. Shakarganj has been new to the dairy products market and is striving to compete with excellence in product safety, quality and value. Their aim is to provide customer with pure and hygienic dairy products on suitable prices make it as convenient as possible. According to their claim they provide the best quality dairy products throughout country. We will be mainly focusing on the Marketing Mix of Shakarganj Foods. Further we will explain the SWOT analysis and all other strategies used by them.

4. A Report By Madiha Amir (01)Haider Ali (02)Tariq Ashraf(03)Kashif Ali (06)AmmarYasir(08) AtikaMuryam(09)Iffat Zahra (10)HammadRasheed(11)Fahad Bin Abdul GhafoorWatto(28)RaheelaNaz(83) Submitted To Madam SajidaNisar

5. Company Profile

8. To create higher recall of our brand among consumers

9. To diversify into other categories of Packed Milk, in the beginning of 2008 they had 2 categories and now they have 4

10. To Increase in the availability percentage of our brand In the beginning of year 2008 we had 100 distributors and now we have 140 distributors

11. To increase the shop coverage over period of year 2009 by 20%

14. .They are increasing the shop coverage

15. They are improving the distribution channels

16. They are improving the product quality and its features

17. They are adding flavors to their main product (Good Milk)

18. They are introducing new products

19. They are entering new market segments

21. Psychographic segmentation

23. Demographic segmentation However all the companies in the milk sector are trying to change the image of processed milk as non-nutritionist milk. Therefore it can be said that Good Milk’s has been positioned as a brand for high income earners. Due to the income factor involved it can be said that Good Milk’s milk target a specific social class who are health conscious and concerned about their weight.

24. Psychographic Segmentation On the basis of psychographics, factors such as personality traits, lifestyles and values, the marketers at Good Milk’s have segmented the market more towards achievers who are goal-oriented and focused on their careers The ads for Good Milk’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more

25. Psychographic Segmentation Good Milk’s ads also target believers, traditional conservative people with concrete beliefs. The Good Milk’s products have targeted experiencers because the company has given them a new set of brand and so many will make their first purchase because they want to try something new.

27. In this case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well for any other use.

31. It is not easy for competitors to imitate

33. A reliable process

34. Close relationships with customers and suppliers.

37. Solid relations with their suppliers, distributors, partners and consumers

40. Solid relations with their suppliers, distributors, partners and consumers

46. If we concentrate on the definition of the product, and try to focus on its practical implementation on the organization concerned,

47. It exhibits an evident fact that it is involved in producing delicious entertainment incorporating chilled smooth cream with various flavors in several versions

49. cooperative staff, time and again and to build profitable, long-term, loyal and friendly relationships with their customers.

52. PRODUCT QUALITY Product quality is one of the major positioning tools and it has a direct impact on the product performance; thus it is closely linked to customer value and satisfaction. Quality is actually the attribute that the company thinks to be the most important element that makes any company distinctive from others. And their quality checks are their core competency that they are using as a weapon against their competitors. SHAKARGANJ relies on Total Quality Management (Return on Quality). Their production department is constantly engaged in improving the quality of the product at each and every stage in the manufacturing process, i.e., the constant quality checks are maintained at each and every step in the production process.

55. PRODUCTS OF SHAKARGANJ Good Milk Shakarganj Food Products has developed an elaborate system of collecting milk directly from the farmers on a daily basis, ensuring freshness of the product. The fresh milk thus collected is processed using state of the art UHT (ultra high temperature) technology and aseptically packed in Tetra Pak filling machines. This process ensures zero microbial activation, while preserving maximum flavour, taste, and nutritional value without the use of any preservatives.

56. Good Milk Slim SLIM is Low-Fat High-Calcium milk. It contains less than 1% fat and has a higher portion of calcium compared to regular milk. Two to three glasses of SLIM help meet an adult's daily Calcium intake requirement. SLIM has been introduced keeping in mind the need for a nutritional product for adults. SLIM has high nutritional Value and is good in taste and after taste.

57. FlavouredMilk OOLALA FlavouredMilk OOLALA Kids - we all love them. We love them more as we see them grow. And who doesn't know that milk with all its natural goodness and essential nutrients plays a pivotal role in the child's physical and mental development. Without milk, a child's daily diet plan is incomplete. The tough part, however, is to make the kids drink milk, particularly the school going ones. Somehow they are always shying away. But now Shakarganj

58. Good Milk Cream Milk that is collected from the farmers is rich in fat (over 5%). However the processed and aseptically packed “good milk” is toned at 3.5% fat (internationally accepted standard of full cream milk). The extra cream from the milk is processed using state of the art UHT (ultra high temperature) technology and aseptically packed in Tetra Brik packages. The packed cream has a fat content of 40%. The rich cream, with a smooth texture, is ready for use in tea, coffee, and desserts. It is also used as an ingredient in many traditional recipes of cooking. It is available in packing of 200ml.

59. Pure Desi Ghee ShakarganjFood Products specialises in offering high quality “Pure Desi Ghee” (butter oil from buffalo milk) made from fresh cream. With food connoisseur in almost every other house and culinary heritage considered an important part of our culture, desi ghee with its typical rich aroma

60. Kinnow Crateoncent At Shakarganj, Kinnow concentrate is made from Kinnow Mandarin –a fruit known for its bright orange colour, high nutritional value and sweet tangy taste. Kinnow concentrate's production begins at the plant in the last days of December and ends by mid April. The product parameters are controlled and maintained according to the USDA Standard guidelines and following GMP rules as per ISO 9001:2000 Quality Management System and HACCP checklist.

61. NEW PRODUCT DEVELOPMENT By new product we mean original products, product improvements, product modifications and new brands that the firm develops through its own research and development efforts. Mainly, there are two broad ways of introducing a new product in the market or developing a new product. Through acquisition, the company buys the whole firm, a patent, or a license to produce someone else's product. The other is through, New product development in which a new product is developed in the company's own research and development department.

62. Future Products Various value added food products, including dairy and fruit products, are in different stages of development. New products are planned for launch, starting from 2008. Dairy Products

65. Pricing is the only element in the marketing mix that produces revenue; all other elements represents costs.

67. The pricing strategy for Shakarganj Good Milk is as such that it is differentiating its products from the rest of the competitors. Its prices are higher than the local brands and are less than the international brands. The price of Shakarganj products is competing with both the local market and international brands.

73. Prices of Shakarganj Flavored Milk

74. Prices of Shakarganj Flavored Milk

75. Prices of Shakarganj Nectar & Juices

77. PLACE “Placement includes the activities that make the product available to target customers.” Shakarganj Good Milk is trying to ensure its success by the heavy distribution of its products in the market. DISTRIBUTION NETWORK “The network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system.”

78. DISTRIBUTION NETWORK STRATEGY Shakarganj Good Milk more prefers the Numerical Distribution Strategy rather then weighted Distribution Strategy. What they are doing is that if there are ten shops in a row they will distribute their product (Good Milk) in all the shops rather then distributing in, say five shops in bigger quantity.

81. At right time

83. Lahore

84. Islamabad

85. Faisalabad

88. Pan shops

89. Super store

90. Juice corners

91. Schools and colleges

92. Hospitals

93. Marriage halls

94. Zoo

95. Tombs

99. Market Channel Strategy Manufacturer Manufacturer Manufacturer Manufacturer Jobbers Wholesaler Wholesaler Retailers Retailers Retailers Consumers Consumers Consumers Consumers

105. Sales And Promotion Activities SFPL try to build strong brand equity through its promotion and sales activities. We at SFPL make sure that target consumer relates the ads with company products SFPL try to make the brand exciting for the target consumers. The entire production is effectively marketed in selected areas of the whole country. The company is developing business relationships with food processors in the other international markets as well.

106. Sales And Promotion Activities SFPL products have attained brand acceptance and recognition in the national markets through a well developed marketing strategy. SFPL has an extensive sales network promoting and selling products in all the regions of the country. The extensive distributors' network ensures presence of SFPL products at all relevant retail outlets. The sales network serves as an effective medium to penetrate in the market and get customer feedback. Marketing and sales teams consist of skilled staff with vast experience in the dairy and FMCG industries.

107. Sales And Promotion Activities Local Events and Activities: SFPL use anything from setting up a booth at a street fair to sponsoring a little league team to display its product or company name. Free Samples: the company look for key locations where its can target group can be found and give out free samples. If possible the company give free demonstrations of its service or product. Contests: SFPL finds a prize of interest to their target audience and hold a contest. Speaking Engagements: SFPL contact local schools, speakers groups, and associations and inquire about speaking engagements, such as lectures, seminars, or classes that they can teach.

108. Sales And Promotion Activities Fliers: SFPL is also exchanging fliers with other noncompetitive businesses who will display them at their location. Also find locations where they can post a flier or bulletin. Vehicles: SFPL as a promotion tool paint the name of their business on any trucks and buses they use and even put a sign on the company car or in the car window. Press: When launching a new product or activity it develop a list of local editors and producers and send press releases of important upcoming activities. Newsletters: Email newsletters or print newsletters are an effective and inexpensive means of promoting the business.SFPL is also engaged in these activities

109. Annual Sports Function Every year, annual sport day is held at the Shakarganj Mills Colony, Jhang in February. Different competitions are held in which students from all the schools of Jhang district participate. Prizes and certificates are distributed among winners at the end of the event. Contacts and Networking: Hand out your business cards to as many people as possible and network regularly to make new contacts. In Store or Online Values: Offer special discounts for second purchases or free downloads online. Attend Meetings of Professional Groups: The company also attend meetings of the Chamber of Commerce and other local groups where it can introduce yourself and its business to others. Directories: The company make sure to list the company in all appropriate free directories.

112. Employees

113. Suppliers

114. Distributors

117. Quality of labor

118. Labor strikes

120. Quality of material

123. ECONOMIC.

124. SOCIO-CULTURAL.

128. SWOT Analysis Introduction: An effective framework for visioning, developing and confirming your goals is through an old SWOT analysis – an acronym for Strengths, Weaknesses, Opportunities and Threats. It is always said that we need to concentrate on the right priorities to achieve success. SWOT analysis is a flexible concept that can be used in various scenarios from assessing projects or business ventures, making decisions, solving problems, evaluating candidates for a position to marketing strategy formulation.

129. SWOT Analysis

130. Strengths Of Shakarganj These are the internal attributes that add value and give SHAKARGANJ a competitive edge over others . So, take an objective look at:• What do SHAKARGANJ do well?• What is SHAKARGANJ USP (unique selling points) ?• What advantages SHAKARGANJ have over others?• What relevant resources SHAKARGANJ have access to?

131. Strengths Of Shakarganj PR with farmers SHAKARGANJ has been interacting with the farmers for fertilizers and has gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company Positive response from customers In first year, SFPL crossed 1.4 billion sales figure which shows customers’ satisfaction upon SFPL’s products. Its taste, quality proposition and world-class quality proposition system.

132. Strengths Of Shakarganj Strong consumer & product research Good Milk’s done a strong consumer & product research before and after launching the product. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry. Latest Plant SFPL has the Latest UHT milk plant. SFPL plant is the plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene.

133. Strengths Of Shakarganj Parent Support – SHAKARGANJ India has a strong support from its parent company, which is the world’s largest processed food and beverage company, which is producing sugar for more than a decade.The company has access to the parent’s hugely successful folio of products and brands. Product Innovation The company has been continuously introducing new products for its customers on a frequent basis . Marketing and sales teams consist of skilled staff with vast experience in the dairy and FMCG industries.

134. Weaknesses Of Shakarganj Low Budget The weaknesses of Shakarganj Good Milk according to their market plan are:Budget: the one weakness is their low budget then their competitors. Low Quality Milk SFPL is not having its own dairy farms; it largely collects loose milk from farmers & gwalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices.

135. Weaknesses Of Shakarganj Reputation, Presence And Reach Our company has less market presence or reputation as compare to that of our competitors like nestle Gaps In Capabilities We have a small staff with a shallow skills base in many areas .We are vulnerable to vital staff being sick, leaving, etc. Supply Chain - The company has a complex supply chain management and the main issue for shakarganj is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel

136. Weaknesses Of Shakarganj Packaging SFPL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Good Milk’s for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs. Milk Collection & Distribution Costs SFPL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk processing facility is situated at Jaranwala, near Faisalabad. It increases the milk collection & distribution costs; and also increases the chances of milk getting spoiled because of increased traveling time.

137. Opportunities Of Shakarganj Large Potential Market According to their market research, 80% of the total market is using Gwala Milk which is more beneficial according to them. Shakarganj Good Milk have a large potential market which is the opportunity to grown their business. Increased funding by Government Government has decided to increase farmers’ funding. This is an opportunity for SHAKARGANJ foods because previously due to weather conditions and other reasons there was lots of wastage of milk but now that can be reduced as farmers will be better able to store milk for longer time periods

139. Threats Of Shakarganj Threats are external obstacles in your path that are largely beyond your control. They are characterised by unfavourable trends like: downsizing, obsolescence, price wars, competitors with superior skills/products, shifts in consumer tastes changing technology.

145. Where do we want to be?“ The goal of gap analysis is to identify the gap between the optimized

146. Gap Analysis Of Shakarganj Management of Shakarganj Foods product Ltd conducted the GAP Analysis regarding Good Milk (2008) which came up with a very positive result. According to them their actual performance is better then their expected performance and they got 20% more then their goals.

148. Marketing Financials Marketing financials is a very confidential thing which can not be known by the people outside the organizations and it is the responsibility of the employees takes care of this information.We have been given a rough idea about the marketing financials of Shakarganj Good Milk. The marketing financials of Shakarganj Good Milk is about Rs 100 million.

152. KhalisDesi Ghee (generic name)

153. kinno Concentrate (generic name)

154. Mango Puree (generic name)

155. Oolala (brand name, however, Line Extended) If they had launched these brands with specific brand name, they would have worked out a good strategy.

159. It should emphasize more on the commercial ads as the advertisement has a direct affect on consumers buying patterns.

160. This is to be sure that good milk is not playing a short term business; therefore, the management should be well focused in handling the product.