3/29/2023 PRODUCT: SPICES

BRAND: SHAN FOODS

GROUP: 09
OVAIS HASHAM (18678)
SHAHID ALI (19096)
M. BILAL (19052)

COURSE: FUNDAMENTALS OF
MARKETING
INSTRUCTOR: M. FAISAL
PROGRAM: MBA (R) / EVENING
 QUESTION NO 01:
JUSTIFICATION OF PRODUCT SELECTION:
ABSTRACT
Spice industry in Pakistan is an
agricultural commodity based, high
demand, and growth-oriented sector.
The sector has been split into packed
cum branded and unpacked cum
unbranded spices. The packed spices
generally tend to be wholesome and
processed in standardized fashion. On
the other hand, the unpacked/open/loose
spices generally tend to be
unwholesome, sub-standardized, and
adulterated that cause serious ailments
and health hazards.
This probe ascertains that how a
conventional agricultural commodity-
based industry can be turned into a
branded industry? It examines industry
profile, its branding moves, and the role
of public and private sectors in branding
and regulating such trade. This is a
qualitative inquiry that rests on selected
literature review and focus groups from
consumers, field experts, and merchants for rich insights of the realm. The results
indicate that the spice industry in Pakistan is a fast growing billion rupees industry. It
 is dominated by the unpacked/loose and
unbranded spice sector that enjoys almost 58%
market share and the branded spice sector has
42% share. There is a dearth of awareness
about detrimental effects of adulterated or sub-
standard spices inflation and affordability by
poor masses, and loopholes in the regulatory
system cum criminal negligence by food
inspection teams and relevant authorities.
However, the branded spice sector is playing a
positive role in supplying the hygienic and
high quality packed spices plus recipe mixes to
the market and consumers. Eventually, a
proposal has been lodged for branding
The spice industry and protecting it from
culprit producers and looter merchants.

INTRODUCTION
'Spice industry in Pakistan is a high demand
and growth oriented billion rupees industry.
It is an agricultural commodity-based
industry. The market size of the industry
stands Rs. 40 billion per annum (Andrew,
2015). Over the period of time, the branded
players emerged including National Foods,
Shan Foods, Ahmed Foods, Mehran Foods,
and some others. The branded sector offers
high quality, standardized, and packaged
products to the market, developed through
homogeneous recipes, stern quality control
parameters, and international.

RESULTS AND DISCUSSION

Conceptual framework
An integrated conceptual framework illustrated in Figure 1 contains utmost essential
constructs involved in the overall domestic spice industry. They consist of: spice
industry Pakistan comprising branded sector and unbranded sector, hazardous effects
of adulteration in unpacked spices, public-private sectors ‟ initiatives for quality
measure, and branding of spice industry Pakistan. These are further expounded in the
following literature.
 Figure 1. Conceptual framework on branding of spice industry in Pakistan

SPICE INDUSTRY IN PAKISTAN

Spice industry in Pakistan is one of the
major sub-sectors of the food sector. Its
market demand, size, consumption, and
growth patterns portray a splendid picture.
The industry records an amazing growth
rate of fifty percent, whereas the Spice
Industry Pakistan Hazardous Effects of
Adulteration in Unpacked Spices Branding
of Spice Industry in Pakistan Public-
Private Sectors‟ Initiatives for Quality
Measures Branded Sector Unbranded
market leaders like National Foods
Limited and Shan Foods (Private) Limited
also thrived at the same rate of the industry
(Meghani et al., 2008). Spices are basically food additives and are prepared or
processed from dehydrated vegetables and plants. Conventionally, the populace of
South Asian countries is fond of spicy foods as they make the cooked food incredibly
tasty. Traditionally, women used to process or grind spices at home. Spices have
medicinal properties and health benefits too, provided they are taken in reasonable
quantities (CNN, 2006). The domestic industry of spices contains branded and
unbranded segments. Surprisingly, the branded spice segment possesses only twenty
percent market share, in which National Foods and Shan Foods dominate and they
both enjoy forty percent market share each.

Pakistan is the world’s ninth largest market with an estimated 170 Million consumers.
Experts believes that the food Retail Market in Pakistan is in the throes of landmark
changes, with the total number of Retail outlets Expected to have Grown by 15% in
the 1990s Presently Resting at 286,774 outlets. Sharing of food in Household budget is
48.3% in Pakistan.
As indicated in Figure below, it is apparent that 48.3% of the Monthly Expenditure is
on Food, Beverages, and Tobacco followed by rent. This clearly depicts the
consumption pattern of an Average person living in a developing countries Like
Pakistan.

Food Industry around the Globe comprises a niche within it self-Referred as “spices”.
According to the American Spice Trade association “Today spices have become
known as any dried Plant product used primarily for seasoning purposes. This all
inclusive definitions seems to cover a wide range of plants like herbs, spice seeds, and
even dehydrated vegetables and spice blends.
Putting spices in Pakistani
Perspective, they also
compromise the Authentic Recipe
Mixes used in Traditional cuisine.
The Pakistani spice industry can
be divided in to branded and
unbranded industry SMEDA
found out that there are about
7000 spices and salt Grinding
units operation in Pakistan. 60%
of which are Rural based. But
with the Emergence of Modern
Industrial units, the share of these
rural based units in decreasing
spices from a substantial Portion
of Pakistan’s business in terms of
Import and Export.
Since the last decade, there has
been Tremendous Growth in the
Spices industry of Pakistan. In the
Recent Past, Many New
companies have been setup due to
high Growth Prospectus in the
industry. To be at per with local and
International demands, these
companies have come up with secure
packaging and branded packs with
technological changes having Quite an
Impact However Growth in this
industry Revolves around quality,
Promotion and distribution network.
There are Many Factors behind
Increase demand of Spices in Pakistan
a Major factor is the changing
Lifestyles of People who now prefer
ready to use Ingredients over
Traditional home made spices Also
spices have always been in demand due to the sub-continental style of cooking where
Quality spices are termed synonyms with good food.
The Spice industry of Pakistan is a very
difficult industry to compete in. The two
main reasons of this difficulty are low
price competition and Involvement of
Many unbranded suppliers. Brands,
whether branded by a food company,
retailers brand or unbranded and open
commodity merchants including indirect
competitors in the business of providing
ready to cook, Ready to eat, canned /
processed food directly and indirectly
compete against on another.
A Major Factor that creates competition
in this industry is brand Loyalty because
certain taste attitudes can only be
satisfied with certain brands. Apart from
this, some of the Major driving forces in
the Pakistani spice industry are changes
in societal concerns, Lifestyles, and
attitudes, product innovations, and
changes in who buys the product and how they use it. The Right Proposition of Spices
on the basis of Quantity that will be cooked makes the Shan spices different from
competition they have the best Technology available to increase the Probability of
freshness of spices for the longer time period. This actually helped them to maintain
the taste in their Recipes.
 QUESTION NO 02:
JUSTIFICATION OF SHAN FOODS:
Shan Foods came in to Existence in 1981 when it began operations from a single room.
Shan Masala as it was back then launched full range of spices to cater to Local Public.
Shan started Exporting after a few days due to Increased International Popularity.
Shan food is well known as a brand of easy to cook mixes for Pakistani food. The
Name of Shan foods has become synonyms with highest Quality and Exquisite Taste.
It continues to carry on, the tradition of authentic cuisine to farthest parts of the world.
There are six broad categories of Varieties Shan deals in including Recipe mixes.
Plain spices, desert mixes, pickles, basmati rice, salts. Today Shan food has presence
in 60 countries. The brand is exported to UK, USA, and Middle East and now to Far
East region as well.
Shan food sells over 70 different types of
spices and also sells over 70 different types
of mixed and ready recipes in 9 different
heads. Shan has won many awards for
providing superior Quality products to its
consumers globally
On May 24th 2010 Shan foods won one of
the most significant awards in the culinary
Industry the Superior Taste award given by
the International Taste and Quality Institute.
Shan believe they have a Unique and
Comprehensive brand portfolio which has
become an important face of their consumer’s daily lives.
In Pakistan it was not until the 1970s that wholesaler and retailers in Local Bazaars
Entered the Market until companies such as Shan Foods, National Foods and other
small Merchants. The Market Mainly selling Spices. Today Packaged (or branded)
spices account of the 40% of the fragrance market. While bulk spices account for 60%
of the fragrance market. Over the year the industry local and International demand has
grown. With the Emergence of National foods Established in 1970 shan foods
launched in 1981 not only did they simplify cooking for consumers but also reformed
and modified the way Pakistani prepare meals.
Shan foods industries these 34 years have achieved Many Awards which have
increased their brands Reputation, this will all due to the quality taste which they have
provided and are still providing within Pakistan and outside Pakistan
Some of the Major Achievements of Shan foods Industries are:
 2003-2004: Export Performance
Award KCCI
 2003-2004: Best Export Performance
Award FPCCI
 2004-2005: Best Merit performance
Award FPCCI
 2004-2005: best export Performance
Award FPCCI
 2005-2006: best Export Performance
Award FPCCI
 2008-2009: best Export Performance
Award FPCCI
 2010-2011: The superior Taste Award
Shan foods mission explains its success, ―To continuously build up and produce
quality products that meet the customers and market demands. Shan Food‘s vision
is ―To be a dominant global player in food products and do socially accountable
business practices that attains its quality averages so that Shan stands for tradition,
trust and good taste.
As we all known that food is not the Entertainment that can be delayed for some time
it is the necessity of every individual. When it comes to Masala product so, it become
the sole of any vegetables because without this taste would not satisfy the need of any
human. Although there are Multiple factors of success in food industry but few are
mentioned below.
 Quality
 Food Innovation
 Packaging
 Price structure
 Cost control
 Advertising
 People and
Resource.
 QUESTION NO 03:
Marketing Mix of the brand:
Marketing elements are necessary for
brand awareness that is essential for
brand equity. Brand equity
demonstrates that recurrent price
promotions, such as price transactions,
are related to low brand equity, whereas
high publicity spending, high price,
good store image, and high distribution
strength are related to marketing mix.

Product:
Shan offer the variety of Product they target most
of the customer with their provided items such as
basic spices, recipes masala, pickles etc., they
have the wide product line which satisfy the
needs of the customers. Shan foods has won the
hearts of customers domestically and
internationally through their variety of products,
through their use of v-tech technology their
masalas can be used after months of opening.
Shan company sell is higher in the International
market as compare to the other masalas company.
Pricing:
The Price of food depends on each Inventory
Management unit (SKU) and changes with it.
The Pricing strategy is the same as that of its
competitor, National foods because it is the only
industry that has the largest market share in this
industry.
 Promotion:
Shan foods conducts most of its
marketing activities during the seasonal
Period, especially the During the
Ramadan and Eid. Shan foods conducts
advertising and Publicity very carefully
they do not advertise for Religious
activities. They only promote and
advertise seasonally. However they
carry out activities to promote the
product. Promotions are aimed at
women they pay attention to women in
the family. Shan also looks at the ever-
challenging Life style and Looks at a
wider audience. Shan realize that young
people will be the decision makers of tomorrow. Therefore they focus on promoting
and promoting young people about the excellent quality of their products through
sports and advertising.
In this way when Shan foods becomes a kitchen decision making they will become the
first choice. Shan foods online (ATL) business includes Radio, print (Magazines and
newspapers) and TV Commercial
 Place:
The Main Goal of Shan food is to meet
the needs of the Market and customers
on time. The supply chain department
ensures that the Goods arrive at the
destination in time. Shan ensures that its
original products enter the market. And
has a business specialized in Modern
International Trade (IMT) and Modern
Local Trade (MIT). The service directly
contacts the store to meet the
Requirements. This helps them maintain
close and direct relationships with high
sales outlets which is essential to
increase the profits and market share.
The Food family food sales team is
supervised by the regional sales manager and the regional sales manager Mountain
foods provides all possible support to distributors to raise awareness of their product
quality product are allocated based on Geographic segmentation, shan foods has 500
distributors in Pakistan. From Karachi to skardu.
The distributions channels of food family include:
 Retails
 Wholesale
 Hyper Markets \
 QUESTION NO 04:
Target Message of the Spices of Shan Foods:
“To continuously develop and Produce Quality products that meets the customers and
market 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 standards thrived efficient and
Motivation human resource and Incubate in them a sense of participation and proved
for personal Goals and development.

To be a Dominant Global player in food products and socially responsible company

that attains its Quality standards so that the Shan stands for Tradition trust and Good
Taste.
Females, house wife, youth are the major
consumers of 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.
The Aim or Goal of an Organization is to satisfy their customers from their products
as much as they can Shan foods main concern is to maintain the taste of their products.
Shan Foods are very Much effective and efficient in
Marketing Campaign although there two advertisements
make a Quit stir after its release they have done a campaign
“OOH Campaign” at S.M.C.H.S Karachi where they have a
huge pot and showing it as pot of haleem.

Their Eid campaign in 2023 TVC which is incredibly and

emotionally writing and showcase the feeling of those who
spend their eids far from their homeland & loved ones.

Shan another 2017 TVC which records 3.3 Million views

in 03 days in this they are showing the bound of love from
across the borders how you can express it with food. This
Campaign is for those who are the forgeries in Pakistan.
The estimated marketing Budget for Shan is
100 million for all their ATL and BTL
activities in the year 2009. The company does
most of its marketing on seasonal basis
especially before and during Ramadan and
near Eid. The Breakdown for the Budgeting is
80% for ATL activities and 20% for BTL
activities. In the recent times Shan has put
more emphasis on its export and only comes
up with new marketing campaign for
new product
The advertisement of Shan offerings focus entirely in the females of the female. The
Marketing strategy is very customers oriented i.e. Shan Emphasizes on marketing its
products keeping in mind its customers thus having a customer centric view.

QUESTION NO 05:

Major Players of Packed spices in the Industry are:

 Shan foods.
 National Foods.
 Chef’s pride.
 Mehran foods.
 Ahmed foods.
 Habib foods.
 Ziaqa foods.
 kitchen streets.
There are Many Major contributors in the Fragrance industry to stay competitive
however Shan foods biggest competitor. Shan foods market share in formula mixtures
in 41% and its market share in simple spices is 8% while National foods market share
in formula mixture is 49% and its market share in spices is 10% to 12%. Other
competitors are Mehran foods, Zaiqa foods, kitchens chef, Habib foods Ahmed foods.
Brands Market Share
Shan Foods 40%
National foods 40%
Chef’s Pride 15%
Other 05%

As Shan foods leading the market with its products there are Numbers of Competitors
that Shan face. Lays the stiff competition that Shan face is with National foods
Limited because they have better distribution
work which put Shan in worries.
Somehow each classification has an immediate
Impact on the brand position however media
plays a vital role in it Shan Published their
advertisement through stories of People such as
(Housewife’s, Pilot, and comedian) who lives far
from their homeland. Which shows the brand
accessibility & popularity they also advertise
their brand by outdoor branding at S.M.C.H.S in
Karachi with the name of “OHH CAMPAIGN”
CONCLUSION
Finally, based on the research objectives
and subsequent research questions strived
to ascertain about learning various aspects,
facts and figures regarding industry size,
demand, growth, and nitty-gritty of spice
industry in Pakistan, it was discovered
through literature that the size of the
domestic spice industry appears to be
60,000 tons worth Rs.35-40 billion per
annum. The market for plain spice and
recipe mixes is marking amazing annual
growth by 10 percent and 20 to 25 percent
respectively. The industry is dominated
by the unpacked/loose and unbranded
spice sector that enjoys almost 58 percent
market share and the branded spice sector
has 42 percent share. Due to poverty,
inflation, and decreasing incomes, a vast
portion of the population (pertaining
middle and lower classes) remain indifferent with the quality consciousness and
wholesomeness of spices. Regarding the enquiry about the key players operative in the
domestic spice industry and their campaigns toward branding of their products, the
two major rivals exist including National
Foods (dominating the market with 49
percent market share in recipe mix) and
Shan Foods (that enjoys 41 percent share
in the same category), small players in the
branded spice sector enjoy 10 percent
share, and numerous small unbranded cum
unpacked spice processors and merchants
also exist. The same is illustrated in Table
1 and Figure 2 given beneath about the
spice industry highlights. The players in
the unbranded and especially un-organized
spice sector often seem to be engaged in
adulteration moves by adding inferior
ingredients into spices such as, talcum
powder, saw dust, brick powder, sand, dirt,
etc. and resulting damages to human health
including stomach ache, gastroenteritis,
diarrhea, rash, nausea, mental retardation,
cancer, etc. National and Shan apply
the contemporary tools of branding
containing advertising and integrated
marketing communication (IMC) to
create awareness in the general public
and persuade them to buy the branded
spices with the standard quality. A
conventional agricultural commodity-
based industry can be branded to
nourish consumption of hygienic
spices through creating primary
demand for branded spices among
masses. Similar campaigns are run
domestically by tetra pack milk
industry and Islamic banking industry
to thrive the aggregate demand of their
products.The role that the public and
private sector entities including food,
health, and law enforcement
authorities undertake to raise
awareness about the detrimental side
effects of unpacked cum adulterated
spices to human health include
imposing forfeit on such culprits and
seizure of their stock, but there appear loopholes on the part of food inspection teams
and authorities. The media especially, some TV channels have also been exposing
them. The regulatory measures required to take stiff actions against the fowl players
consist of first warning them and then, seizure of their stock, sealing their facilities,
and apprehending them for years.
SUGGESTIONS
Keeping in view the demand value, market size, consumption, and enormous growth
of the spice sector in Pakistan and the detrimental effects of adulterated cum sub-
standard spices sold through loose or unpacked way, the industry needs to be regulated
and branded.
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