Shan Foods

Date of Submission: 30th. September.2019

Submitted by: Haris Ahmad Khan

Muhammad Hadi Javed

Salman Akbar
About Shan Foods

Shan Foods started off from a single room in 1981 and today it stands as the major

exporter of premium quality packaged spices, recipe mixes, rice, pickles and desserts with

products adding taste and flavors to meals across 65 countries.

Shan Food Industries is a Private Limited Company that was established in 1981 by

Sikander Sultan. Since 1981, it has been providing products of exceptional quality and even after

so many years it is mainly recognized due to its spice, it has created so much brand loyalty

within the market of Pakistan that whenever the word spices are used people start referring

towards Shan Food Industries. The story of Shan Food Industries not only ends in Pakistan but

you may even hear their name across the boundaries. People living outside Pakistan know Shan

Foods Industries due to their spices but in Pakistan the story is bit different. It is recognized not

only due to spices but also due to other offerings which it is has been offering.

Shan Food Industries is a brand that is exporting its products outside the country and it

is helping Pakistan’s Economy. Shan Food Industries offers a numerous number of products to

the market around the world it offers 70 different types of spices and 70 types of mixed and

ready recipes. They work tirelessly to bring the best food solutions to their valued consumers –

looking internally and externally for new ideas, trends and improvements to deliver a superior

product experience.
 4 Ps

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.

1. Product:

2. Price:

3. Place:

4. Promotion:
 Segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or

segments, based on different characteristics. Pepsi has segmented its products on the basis of

demographic, geographic, behavioral and psychographic. Pepsi has divided its target market in such a

way that Pepsi’s products are attractive to every age group and is available near them. Tropicana is a

product of Pepsi, which targets the people that are more tilted towards consciousness of their health,

whereas, Pepsi Bold is for the youth. Moreover to attract the consumers from all generations, Pepsi

cola came up with the marketing of their vintage cans. This helped Pepsi create awareness among the

people that they are offered with a product that they used to consume previously.

Targeting and Positioning

Pepsi Co targets customer segments in general by focusing on common characteristics of

positioning of brands within Pepsi Co portfolio. There are some differences among the brands within

Pepsi Co portfolio in terms of their nutritional value, pricing, packaging etc. and these differences

impact the positioning of each brand of Pepsi Co. Pepsi’s goal is to attract a certain set of customers

to buy the product by associating itself with young people who are energetic, fun loving and daring.

SWOT Analysis

Strengths:
 1. Customer Loyalty: Pepsi co has an extremely loyal customer base because its soft drinks

category has an iconic taste and that is the reason that their consumers don’t switch to the rivals.

2. Supply Chain: Pepsi Co has the most efficient supply chain networks in the world, making its

products availability throughout the globe. They also have a very efficient working logistics

department associated with it.

3. Clear Target Audience: Pepsi has always targeted its audience- the young crowd. It always

targets the age bracket of 16-24 through its Ads and in common the youngsters are shown

as smarter than young ones. They have conveyed the message that Pepsi is the in thing.

4. Tie Ups: They have tie-ups with sports events and music concerts which keeps them in the lime

light and thereby increasing the brand recall. They have sponsorships to major sports teams

thereby standing with what the brand is known for, youth and energy.

Weaknesses:

1. Unhealthy products: Most of the Pepsi products are perceived as unhealthy.

2. Product Dependence: Pepsi are only present in the food and beverage industry, which may lead to

narrow market in the longer run. Pepsi need to diversify their products to become the global

leaders.

3. Brand Ambassador: Wrong remarks or bad performance by fake celebrities may damage the

brand image as they are face of the organization. Over-dependence on celebrities for endorsement

is a huge risk.

Opportunities:

1. Healthy products: Pepsi should work on improving the health effects of their products and create

customer awareness. Diet pepsi is the positive move towards that direction.
 2. CSR: Pepsi can hold more CSR activities to reverse the negative remarks that damage the brand

image of the organization and benefit the local people.

3. R&D: Pepsi Co came out with healthier options by making 7UP the substitute of sugar called

Stevia. This can be a positive impact on the brand image of Pepsi. Pepsi should focus more on the

research of diet drinks category.

Threats:

1. Competitors: PepsiCo’s major competitors are Coca-Cola, Kraft foods, Nestle, Dr Peppers

Snapple Group and Mondelez.

2. Health Factor: The unhealthy factor associated with its products can take a toll on the

health conscious customers and might lose them. This can be clearly seen by the fall of

soft drinks sale.

3. Economic Downfall: With the recent situation of the economy Pepsi might see a setback in the

economy. Recession and inflation may also have an impact on the sales of the products.

BCG matrix:

Star Product: Pepsi’s star product is Pepsi cola, Tropicana and Aquafina; these products have generated

the most revenue for Pepsi in the recent years; this product is also categorized as FMCG for Pepsi. The

Pepsi customers and even other brand’s consumers buy Pepsi on daily basis.

Question Mark: PepsiCo. Has been targeting the sugar free market audience for a long time period but

its market share has not been much of a satisfaction for the company. The Diet Pepsi for example, it is
bought by the people in routine but it has not become the market leader in that category and has not

captured the market share which it was supposed to be.

Cash Cow: This includes low growth and high market share. Frito Lays is the biggest cash cow for

Pepsi.

Dog: It has extremely low market share and market growth. Pepsi real sugar is the dog product for Pepsi

Co because Pepsi could not do good marketing for this product and was unable to attract the targeted

audience.

Expansion Strategies

Pepsi Co has added several health friendly and nutritional products to attract new customers. It has

expanded its zero calorie beverages as well as Aquafina and juices along with new flavors. Pepsi Co.’s

product zero sugar has continued to gain popularity throughout the world. Pepsi also introduced a product

by the name of three minutos which is a cheap whole grain port based product which delivers daily

nutrition to the consumers. Pepsi has been and is still the market leader in the food and beverages

industry because it has kept its prices low as compared to its competitor, it has maintained quality check

and relationships with customers has helped them to expand into new and maintain its existing markets.

Marketing Environment

Socio Cultural Factors: The health issues brought by the drinking soft drinks are one of the issues of

socio cultural factor. More and more diseases are caused by unhealthy food, such as, obesity and heart

diseases, so more people are oriented towards their health. By introducing sugar free Pepsi, Pepsi Co

attracted more customers who were concerned about their health.

Technological Factors: Due to the introduction of new technology, Pepsi Co can fill 1200 bottles per

minute, which is much faster than the old one that could only fill 800 bottles per minute.

Political Factor: In United States, government set up maximum standard of 5 PPB level of benzene for

all drinking products. In 2007, food and drugs administration of United States examined the products of

Pepsi and found that products contain more than 5 PPB level of benzene. Pepsi had to remove their

products from stores and offered refunds to the customers.