SHEZAN INTERNATIONAL COMPANY LIMITED

A Project on

FRUIT JUICES
Of

Shezan
International Ltd.

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 SHEZAN INTERNATIONAL COMPANY LIMITED

Companies producing same line of

product

i) Shezan International Ltd.

ii) Nestle ® Company Ltd.

iii) Murree Brewery Company

Ltd.

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 SHEZAN INTERNATIONAL COMPANY LIMITED

Nestle Company Ltd.

Nestlé Consumer Services
308 Upper Malls
P. O. Box 874
Lahore, Pakistan
Phone: (042) 111-Nestle (637853)

Shezan International Company Ltd.

Contact: 56- Bund Road
Lahore-54500
Ph: (042) 7466900-04
Fx: (042) 7466899 & 7466895
E-Mail: Shezan@brain.net.pk

Murree Brewery Company Ltd.

National Park Road, Rawalpindi, Pakistan
Tel :( +92) 051-5567041-7, Fax: (+92) 051-5584420
E-mails: murbr@isb.paknet.com.pk , admin@murreebrewery.com
Tops Foods & Beverages
National Park Road, Rawalpindi, Pakistan
Tel :( +92) 051-5567041-7, Fax :( +92) 051-5565461
E-mails: tops@comsats.net.pk
Factory: Plot#14/1, Phase III, Industrial Estate, Hattar, N.W.F.P. Pakistan.
Tel:(+92) 0995-617013,617493, 617494

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A summary of profiles and History of these

companies
NESTLE® COMPANY LIMITED
Who is Nestle® Company Ltd.?
The company dates to 1867, when two separate Swiss enterprises were founded that would
later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers
from Lee County, IL in the United States, established the Anglo-Swiss Condensed Milk
Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby food
and soon began marketing it. In the succeeding decades both enterprises aggressively
expanded their businesses throughout Europe and the United States. (Henri Nestlé retired in
1875, but the company, under new ownership, retained his name as Farine Lactée Henri
Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the
following year the Nestlé company added condensed milk, so that the firms became direct
and fierce rivals.

Nestle® in Pakistan
Nestlé has been serving Pakistani consumers since 1988, when our parent company, the
Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.
Today we are fully integrated in Pakistani life, and are recognised as producers of safe, nutritious
and tasty food, and leaders in developing and uplifting the communities in which we operate.
We at Nestlé Pakistan ensure that our products are made available to consumers wherever in the
country they might be. Convenience is at the heart of the Nestlé philosophy, and our aim is to
bring products to people's doorsteps.
What Nestle ® can do for you
Ever since Nestlé was established, we have been committed to nurturing people worldwide.
Today, as the world's leading Food and Beverages Company, and leaders in health and wellness,
they try to cater to all their family's nutritional needs, no matter where in the world you live.
The story begins in 1867, when Henri Nestlé developed a baby formula that saved a child's life
and marked the beginning of Nestlé's decades-old commitment to nutrition.
In the 140 years since then, they have expanded around the world and developed a range of
products designed to suit every taste, need and cultural preference. Their distinctive seal is
recognized everywhere as a guarantee of quality and healthfulness.
Nutrition, quality and convenience remain the keystones of our products and even as we confront
the new century's challenges, we feel it is our duty to adapt to the changing needs of our
consumers.
The responsibility does not simply lie in perfecting the products we develop at our R&D centers
spanning four continents, but the role our products play in making lives well - both for our
consumers and for communities in the countries we serve.
Thus, along with old favorites such as KITKAT chocolates and NESCAFÉ, the world's most popular
coffee, Nestle® keeps introducing new, exciting options worldwide.
Understanding that people in every country have different tastes and needs, Nestle® has
developed a range of food and lifestyle products. In India consumers enjoy healthy and
convenient MAGGI Noodles Atta Noodles, in Pakistan you can find NESTLÉ Raita and in China,
flavored water is strengthened with Prebio1; dietary fibre and traditional Chinese ingredients such
as Aloe Vera and Chrysanthemum.
Our popularity has come not just from acquisition and corporate expansion, but also from a care

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for the ever-evolving needs of customers at every point in their lives.

MURREE BREWERY COMPANY

LIMITED
Who are they?
Murree Brewery is the maker of Pakistan's premier beer brand, Murree Beer. Its products
are only legally available in Pakistan owing to a prohibition on the exportation of alcohol
from Pakistan. The brewery has two manufacturing units located in Rawalpindi and Hattar
(NWFP).

About Murree Brewery Company Limited and

History
The Murree Brewery Company Ltd. was established in 1860 to meet the beer requirements
of British personnel at Ghora Gali near the resort place of Murree.In the 1880s the company
established a further brewery in Rawalpindi and a distillery in Quetta.Due to scarcity of
water in Murree in the 1920s, brewing was mostly transferred to Rawalpindi but malting
continued at Ghora Gali until the 1940s, when this property was sold. This brewery, built in
the Gothic style of architecture, was burnt during the partition riots of 1947/48, while the
brewery in Quetta was destroyed in the 1935 Balochistan earthquake.In the 1960s oak casks
were imported from North America, Australia and Spain and the underground cellars now
hold over half a million litres of Malt Whisky for varying periods of maturation up to 12 years.
Murree brewery produces a generally excellent world class Single malt whisky.New beer
canning and modern bottle filling facility were installed in the 1990s, imported from
Germany

How they are expanding and growing?

In 1977 the Murree Brewery suffered a significant setback when Zulfiqar Ali Bhutto imposed
a total prohibition in Pakistan, to appease Islamic elements of the electorate. Subsequently
the government of General Zia-ul-Haq ammended this law, requiring anyone wishing to
consume alcohol to present credentials demonstrating that they were non-Muslim. The small
Christian, Hindu and Parsi communities were not large enough to support the enterprise,
and production had to be scaled back.
However, gradual relaxation of the prohibition laws has allowed Murree to introduce
variations of Murree beer, vodka, gin and whisky. Today, all Murree products are readily
available in legal liquor shops that operate openly in Karachi in places like Zamzama and
Defence. It is also available in the interior of Sindh. Although the consumption of alcohol in
public is still nominally banned, it is becoming increasingly available in clubs and high-class
restaurants. Murree Beer was initially being produced in Austria for European markets and
was available in various Pakistani and Indian restaurants, an enterprise which has since
ceased since 2004.
The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares
were traded on the Calcutta Stock Exchange as early as 1902, and is now the oldest
continuing industrial enterprise of Pakistan and among the top 25 performing public
companies by the Karachi Stock Exchange.

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Murree's biggest competitor is the Quetta Distillery, and its products have to increasingly vie
with smuggled brands from the West and India.

SHEZAN COMPANY LIMITED

About Shezan and History of Shezan
The Shezan International Limited was incorporated on May 30, 1964 as a Private Limited
Company. Shezan International Limited was conceived as a joint venture by the Shahnawaz
Group, Pakistan and Alliance Industrial Development Corporation, U.S.A. in 1964. Shezan is
the largest food processing unit having developed and installed the capacity to meet the
country's local as well as export needs. In 1971, Shahnawaz group purchased all the shares
of Alliance Industrial Development Corporation with the permission of the Government of
Pakistan. In 1980-81 a separate unit was installed in Karachi which now caters for Karachi,
Sind and export demand. A bottle filling plant was set in 1983 in Lahore, Punjab. An
independent Tetra Brik plant was commissioned in 1987.In the year 1990 it was decided to
install a juice factory at the Hattar in North West Frontier Province of Pakistan. Shezan
International's Head Office Located in Lahore, Pakistan. In Canada, Target Foods is the
authorized distributor for all Shezan Products. They carry all the export quality Juices, Jams,
Pickles, Chutneys, Sauces, Syrups and Squashes.
Group of Shahnawaz: Shahnawaz Group is currently holding business of following
companies;
1- Shahnawaz Limited (established in 1946)
2- Shahtaj Sugar Mills (1965)
3- Shahtaj Textile Limited (1990)
4- Hattar Fruit Products Limited (1990 - wholly owned subsidiary of Shezan International
Limited),
5- Shezan Services (Pvt) Limited (1980)
6- Shezan (Pvt) Limited (1950)
7- Guardian Leasing Modaraba (1994)
8- Shahnawaz Textiles Ltd. (1992)

Vision and Mission Statements of Shezan

Vision:
“To be known leader of quality products in the region.”
Dedication to quality is a way of life at our company, so much so that it goes for beyond
rhetorical slogans. It is the objectives of Shezan International Limited to produce and provide
products and services of the highest quality. In its activities the company will pursue goals
aimed at the achievement of quality excellence and succeed as a profitable business. These
results will be derived from the dedicated efforts of each employee in conjunction with
supportive participation from management at all levels of the company. The company is
aiming to pay its role in the economic development of the country and to enhance the living
standard of the people.
Mission:
The mission is “to be the largest food processing unit having developed and
installed the capacity to meet the country's local as well as export needs”

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Distribution Channels of
Shezan

Shezan distributes its products through two channels scheme

(1)National
(2)International

National:
Shezan has divided the country into three regions from distribution point of view. These
regions are
i) Punjab (This area is covered by the Shezan factory located in Lahore)
ii) NWFP & Azad Jammu Kashmir (This area is covered by the Shezan factory located
in Hattar)
iii) Sindh and Balochistan (This area is covered by Shezan factory in Karachi)
Company’s distribution channel at national level operates as follows
1- Manufacturer-------- Retailer-------End Users

The areas nearby the factory of Shezan are covered by Shezan’s own
logistics. Shezan directly approaches to the retailers and then goods are
delivered to end users. Shezan has good transportation system for it’s
delivery process. It has more than 300 small and big vehicles for product
delivery process.

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 SHEZAN INTERNATIONAL COMPANY LIMITED

2- Manufacturer ------ Distributor-- Retailer--End User

Shezan has distributors for it’s regional districts. These distributors supply products to all
villages, town and cities lying under those districts.
Retailers revive end products from distributors and then sell it to end users/consumers.
About 300 distributors of Shezan are in Pakistan.

International:
Shezan has approach to many countries of world. It supplies to UK. and other eurpean
countries.
Shezan has only one distributor in each international country. And those distributors are
responsible for the delivery and managing inventories abroad.

Shezan uses same channels of

distribution for its all products.

Marketing problems of Shezan during

last three years
Although Shezan is running its business successfully and it’s earning a reasonable amounts
of profits but as every company they also face some problems in their business. Shezan has
been manufacturer of Juices and Squashes for almost last 50 years or so in Pakistan and it
has a strong hold over the market. Shezan faces some problems in its business area which
are following

According to Intermediaries
i) Less margin on sale
ii) Tough credit policies

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iii) Delivery complexion

iv) Less awareness of customers for new precuts launching

According to Marketing Personnel

i) Religious problem (Qadiani Issue)
ii) Black mailing of distribution
iii) Low pricing of its followers (like TOPS Juices; product by Murree Brewery)
iv) Uncertain condition
v) Strong competitors like Nestle®
vi) Low entry barriers in juices sector
vii) Less Advertisement

Causes of problems faced by Shezan International

According to Marketing personnel:

Shezan being a big manufacture in Pakistan in fruit juices sector is facing some problems.
The main problem about the legality of Shezan is that it is owned by Qadianis and Muslims
are to be prohibited from them. So they face this problem as people say that they are
Qadianis and don’t buy their products. Other major issue in the problems is the less entry
barriers which means that a person with some capital may start it’s own business in fruit
juices industry. There are hundredths of local manufacturers working and producing juices at
low rate. So many entrants cause problems for them.

According to Intermediaries:

Intermediaries are somewhere unhappy with the policies of Shezan as they say that they
have less margins on each sales and the company adopts the tough policy for credit terms.
The delivery times and process of clearance is somehow a bit difficult. So they feel some
problems and unhappy with the policies of Shezan International Company Ltd.

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PRODUCTS ADDED AND DELETED DURING

LAST COUPLE OF YEARS
Shezan has been increasing its number of products on regular basis and it
has also deleted some of it’s products which where not generating
reasonable revenue. Some of the products are listed below

Products added by Shezan during last 3 years

i) Shezan Twist series of Juices

ii) Shezan All pure
iii) Shezan Mango Nectar
iv) Readymade meals
v) Ispaghol
vi) Quenches of different flavors
vii) Chatnis of two flavors

Deleted products during last 3 years

i) Apple Splash
ii) Disposable bottles of juices

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Marketing Strategies of Shezan

International to attract customers and
Creation of Demand
The marketing and promotional activities of fruit juice and related commodity groups are
crucial in increasing the demand for fruit juices. These activities include, but are not limited
to, promotion, advertising, new product development, and packaging innovations. Shezan
adopts their strategies in accordance with specified consumer wants and needs. They also
create product image and influence consumer purchases. Often, consumer demands for
processed food like juices are difficult to categorize. Consumers tend to purchase products
and services that cover a broad spectrum of price and value combinations. Servicing the
educated, nutritionally aware consumer who dwells in the localities i.e. E-8, F -8 Sectors of
Islamabad, Blue Area etc. and same type of Consumer category in Lahore and other metro
cities is a complex role which marketers strive to master. In these types of areas people use
to have a pure fruit juice at least once a day, with an imported or prime local fruit juice.
Similarly this market could be catered through intensive marketing and promotion campaign
on television or other sophisticated media. New product developments in conjunction with
technological advancements have improved the marketing of fruit juices like many other
food items. Relatively recent innovations appearing on supermarket shelves are single
serving aseptically packaged fruit juices, fruit roll-ups and fruit juice blends. Marketing
infrastructure, which includes refrigerated transportation facilities and the composition of
retail and wholesale markets, is correlated to the consumer demand for high quality
produce. Equipment that transports from the field to the supermarket, field wrapping
machines, improved cooling techniques, and temperature controlled distribution centers
have been developed to ensure the delivery of quality produce to retail outlets.

Company considers following points for creating their marketing strategies

a. What do we really know about their needs, preferences, behavior and their life
styles?
b. What can we offer them... at a price... that other companies do not?
c. How do we perform in comparison to our competitors?
d. How are we currently performing for our customers?
e. Where are the gaps, the weak points, the fudges, and the point of excellence... the
USPs (Unique Selling points)?
f. How are we different?
g. Why are we different?
h. How can we better delight?
i. How do we change?
j. What do we change?
k. How clever are we with our market intelligence?
l. How well is our market research working?

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Strategies for launching the product by

Shezan
Goals and Objectives
• Creating awareness about the product of the company to atleast 40% of the target
market within the first three months of launch of product. The objective will be
achieved through promotional strategies, marketing promotions developed in the
possible manner.
• Capturing 40-50% of target market during 1st year.
• Launching the product in summers

IMPACT OF THESE STRATEGIS ON SALES AND

PROFITABLILITY

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Shezan applies good strategies for launching its products and attracting the consumers. It
also affects significantly on sales of its juices and revenue generated from juices
department. This can be seen in following figure that how sales has changed from last 3 or 4
years.

We can see a impact on sales and profitability of Shezan due to above marketing strategies
and policies as shown in following diagram

As we can see from the previous page graph that sales of the company has increase from
2004-2008 rapidly but last year in the patch of 2008-2009 sales has been decreased. There
may be a reason of current economic condition lying in Pakistan. Otherwise the company
has been able to implement its strategies effectively as the sales are indicators of perfect
implementation.

CONCLUSION:

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After doing marketing and competitor analysis we have concluded that the company is
doing pretty much good but not to the extent that is required from it. Being the pioneer in
the juices in Pakistan it must have become market leader now. But because of certain
reasons it is lacking behind in this department.
There is no doubt that there come many diversifications and verities in the products of
Shezan but there is still a more to do. The company must do diversification in its juices and
make it sure that it is following the required and up to mark placement and promotion
strategies.

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RECOMMENDATIONS AND SUGGESTIONS:

i. The first problem is faced by Shezan from its intermediaries and
distributors are that they have tight term policies and they have fewer
margins on sales. According to our conclusion and suggestions Shezan
must follow a discount policy for the credit terms. They should
encourage the investors and distributors who are ready to take their
products for end users and start a discount policy on credits like n/30
policy.

ii. They should adopt monitoring policy to overcome the problem of

delivery complexion as many of the distributors and intermediaries
have problem that their delivery system isn’t quiet efficient. They must
hire professionals for this purpose to enable the timely delivery of their
products to distributors.

iii. A problem concerning marketing area is that Shezan is not much

intended to market its new products before launching. Shezan must
take into count that without creating awareness about product, they
can’t sell their product at high volume.

iv. As far as religious problem of Shezan Company is considered they

should start a campaign like lays started to show Junaid Jamshed in
their advertisement to make a sense in people that they can use lay as
it’s not Haram. So they can show some of the Islamic scholars in their
advertisement to make a sense in people’s mind that using product
produced by Shezan isn’t prohibited in Islam.

v. There are many producers of fruit juices who are selling juices at lower
price than Shezan. Shezan must reconsider its pricing policy to force to
push back these low budgeting producers. Shezan can lower its price
by reducing its production cost.

vi. Shezan is not currently running any type of promotional strategy.

Shezan must open it’s outlets at different easy accessible place within
the cities and in the areas where information doesn’t reach easily and
medium of communication is very complex.

vii.Being a leader Nestle® always tries to keep its market share up to the
Shezan’s share. Shezan must try to enhance its market share by
specific challenging strategies.

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viii.Being market challenger Shezan should chose specific attack strategy

that gives buyers more choice to choose among variety of products.

ix. Shezan should enhance its advertisement channels as they are

currently advertising through TV Channels and often they advertise
their products on Radio or Newspapers. Shezan must increase the
advertising channels to make it sure that their product is known by
each and every individual in country.

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