ANALYIZATION OF 4PCS/7PCS OF MARKETING IN LOCAL MARKET A
CASE STUDY OF SHAN MASALA AND DAWLANCE
Submitted to:KARACHI UNIVERSITY BUSINESS SCHOOL
PREPARED BY:
ANAS HABIBULLAH
ENROLMENT NO:
------------------GR#
SEAT NO:-
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LETTER OF TRANSMITTAL:January --,2019
To,
The Chairman
Karachi University Business School
Subject: Submission of speech communication report on 4pcs/7pcs of shan foods and dawlance
Respected Sir,
This is to inform you that I have completed the report on ANALYZATION OF 4PS/7PCSNOF SHAN FOOD
AND DAWLANCE .A brief history of the shan and dawlance is initially outlined with the analysis and
other market findings are mentioned. The report has been prepared for the completion of the course
titled BA (BS) 432, Speech Communication; the main purpose of this speech is to present our conceptual
understanding of the course.
Yours Sincerely
ANUS HABIBULLAH
BS-IV
SEAT # ---------AL-HAMD COLLEGE OF PROFESSIONAL EDUCATION.
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ACKNOWLEDGEMENT
It has been an honor for me to prepare the report on analyzation of 4ps/7pcs of shan food and
dawlance. Which was assigned by Karachi university business school with the help of “ sir Essa ”
and imrana bano .our speech communication, course coordinator ,without their rich guidance
such a report would not have been an easy task to achieve. I would certainly like to offer our
special thanks to the number especially at all the institutions we visited provided us with
valuable information.
I would again like to take this opportunity and express our acknowledgement distinctly to the
teacher for directing us about the technical aspects of the report.
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EXECUTIVE SUMMARY:Shan foods(pvt.) limited is a Pakistani producer of packages
spices mixis used in Pakistani cuisine, indian cuisine and other
countries of south asia.
Shan food industries was founded as cottage industry in 1981
in Karachi shan exporters (10 to 50) countries making it
pakistan’s largest exporter of packaged spices, food and rice
mixes.
Shan food innovates with delicious of the sub-continent to
give you bite of happiness everyday.
As the pioneer in spices mixes we ensure that our product are
not just convenient and easy to prepare but also deliver on
the havor, traditional taste and aroma that their consumer
love and cherish.
Establish shan as the leading culinary brand offering authentic
traditional recipes and home food solutions with relentless
focus on excellence inall we do, ensuring a wholesome
experiences for our consumer around the world.
Shan foods is a power full global brand that has presense in 65
countries across 5 countries.
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TABLE OF CONTENTS
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TOPIC:Pick any product / services available in the local
market and analyze its marketing mix 4pcs/ 7 pcs
Topic #1 =SHAN
Topic #2 =DAWLANCE
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Introduction:
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 60 countries. Today Shan has its consumers in every single
part of the country and with Pakistani people largely fond of eating it further adds to their
success story.
In this report we will largely focus on the 'Packaged spices' of Shan Foods, something that later
went on to become the starting point of Shan Foods as a proper company.
To continuously develop and produce quality products that meet the customers and markets
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 standard thrived efficient and motivation human resource and
inculcate in them a sense of participation and proved for personal goals and development.
When Mr. Sikandar Sultan, the owner of Shan Foods started off the operations, there was not
any other company that produced spices. As a result of this the company did not face any
competition and even to date they enjoy benefits of being the first movers in the industry.
Sultan's strategy was simply to produce and distribute because of lack of competition and
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demand for the product back then as the culture that prevailed in the country was more of the
fact that spices were prepared within households.
Marketing Mix:
Price:
Price is important in this industry as companies with un established brands are competing on
prices and are attracting substantial portion of market. Further more competition between
Shan Foods and National Foods is very intense and they offer products at comparable prices.
Any move to change prices is aggressively answered
Shan Foods offers its products at different prices and different quantities. Pricing policy of Shan
largely depends on Stock Keeping Unit (SKUs). Currently, the price of 50grams of packaged spice
is around Rs.45-50 whereas the 100grams one is available at Rs.80-90
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Promotion:
When we talk about the promotion of the product particularly in terms of fierce advertising and
marketing, the product being a necessity product, suits the needs of the consumers, therefore
the company do not have to advertise a lot. Most of the advertising that is done is seasonal in
nature with promotion campaigns and advertising in Ramzan season in particular. Since the
product belongs to the food business, major target audience is the women. Promotion that is
done by the company is essentially customer centric that gives it an edge over its competitors
such as through the cooking shows, "Shireen Anwar Shan k Sath" cooking show on Masala TV. A
prominent example in this regard is the ad campaign that Shan started where recipe of
different Pakistani dishes were told to the consumers in an advertisement of about a minute or
so. Through such an ad not only did they cater to the needs of the customers, told them about
new innovations that they had brought about but at the same time they also conveyed their
message that their recipes are ready to cook ones thus making them quite handy for the
consumers and giving them an edge over their competitors. However, with changing cultural
trends in the country, with the concept of nuclear families becoming increasingly popular in the
country and with improved literacy rates, the company is now focused on to create an
awareness among the consumers of how important packaged spices are. They are committed
to increase the demand for their product not only on the basis of quality but also to convey the
message to the people that their product is healthy and safe. As a result of this, consumers
might avoid using unbranded or spices produced by other brands.
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Place:
Distribution of the product forms the basis of success of a product because better the
distribution channel of the product, easily it is available to the customers, thus greater is the
success of the company. As a result of this, Shan Foods pay great attention to address the issue
of timely shipments and availability of their products. It is imperative to keep in mind that the
company is also an exporter therefore the Supply Chain team needs to be geared up
throughout the year. In Pakistan alone Shan has 500 distributors; from Karachi to Skardu. The
sales force of Shan supplies its products to these distributors and some direct distribution is
also done mainly in Karachi market.
The distribution channels of Shan Foods include:
Retail, Wholesale, Hyper Markets (e.g. Metro), International Chains (e.g. Wal-Mart)
Shan has its International Markets in USA, Canada, UK, Germany, Holland, Malaysia, Middle
East, South Asia, Japan, Singapore, Australia and many others.
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Product:
As far as the positioning of the product is concerned Shan aims to provide consumers with
solution of having a tasty meal in no time with homemade recipes and packaged spices that are
readily available in the market, safe and healthy and gives value to the customers. This can
further be highlighted with Shan's position statement, "To the confident and convenience
seeking woman of today, our wide range of Shan spice mixes offer premium quality products,
made with the finest ingredients like no other."
Marketing Environment within which the product operates is largely a competitive one. There
are various companies that operate within the industry and in addition to these companies
there are unbranded and unpackaged spices available as well that further increases the
competition. An interesting fact is that loose spices approximately hold 60% of the market
share. With a strong distribution network that exists in the country, the product has a strong
demand in both the rural and urban parts of the country. However, with economic disparity
that prevails within the country consumption of packaged spices is mostly in the urban areas of
the country. In rural areas there still exists a perception where people use homemade spices as
they believe that gives the correct flavor to their food.
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Competition:
As already mentioned above the industry within which the company operates is a competitive
one, there are various competitors that Shan Foods face;
National Foods, Chef's Pride, Mehran Foods, And Many more
Among the above mentioned companies Shan faces stiff competition from National Foods. A
major reason behind this is that Shan has a spicier touch which makes it popular in the
southern part of the country. However, National being the market leader (as shown in the table
below) is popular in the upper parts of the country because people there have a higher
preference for slightly mild food. Also, National Foods has a better distribution network that
further adds to Shan's worries.
Since, National Foods is the main competitor of Shan in terms of market share nationally when
we talk about packaged spices, therefore the company keeps a close eye on the competitor so
that they do not get driven out of the market. Like Shan, National foods also have different
kinds of spices that are available in packaged form. As the product is one that is used on daily
basis therefore, more than the offerings that the companies tend to offer it's the buying
preference that actually determines the success of the two companies. In terms of pricing both
the products are approximately same but National holds an edge when we talk about the
efficient delivery (i.e. better availability of the product) as well as caters to large market share.
Another factor that contributes to National's success over Shan is the fact that Punjab is the
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most populous province of the country and the people there are fond of eating. Now since it is
the largest market with mild preference for spice, it makes it easier for National to have its
success story in that part of the country. Females aging from 18 to 45 years compose the main
target market of Shan Foods. This is because of the reason that in this part of the world, women
are mostly related to the food and cooking. Hence, Shan Foods develops products that are
according the needs and wants. However, lately with the concept of Nuclear families becoming
increasingly popular, the company caters to the needs of males as well making sure that their
product is convenient to use and satisfies their needs too.
When we talk about the two companies Internationally, Shan is the largest exporter of
packaged spices. This is because of the fact that they were the first ones to enter the market
and together with this because internationally there does not exist a specific market rather they
are activating consumer needs that might exist with Pakistanis and Indians living abroad, the
concept of mild taste (National) being preferred over slightly spicier (Shan) does not exist there.
As a result of this with the first ones to break through Shan has successfully established a
market for itself and a taste that consumers now prefer.
Usage in Pakistan:
Despite Pakistani people being fond of food still there are varying consumer preferences that is
seen across the country. While in the Southern part spicier food is preferred, preference is
given to slightly mild one in the upper parts. Apart from taste preferences there are cultural
factors as well that have played an important role in the success or failure of different products
that belong to the very industry. In the country's rural areas homemade spices and recipes are
still given preference over the packaged ones. Not only is the economic factor is kept into
consideration but at the same time people in the rural parts of the country believe that spices
that they make on their own gives the right flavor to their food. As food is the very first in the
Maslow's hierarchy therefore the fulfillment of it is very important. Hence, people do not want
to change their preferences and are largely loyal to whatever brand or unpackaged spices that
they have been using for years. However, with better literacy rates in the country in recent
times and because of increasing tradition of nuclear families in the country, consumers have
started switching towards packaged spices such as that of Shan's. Reasons behind such a shift
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are more attention being paid to health and safety and another reason is that of lack of time.
Hence it may be termed as the change in perception that has evolved over the years in the
society, which has ensured that the packaged spices business flourishes and consequently Shan
packaged spices have been able to capture a healthy market share. Also, when we talk about
'opinion leader', film star Shan was in one of the ads of Shan. Now since people look up to him
and Shan belongs to the film industry, one that requires a person to look good and stay healthy
people started preferring Shan packaged spices. With packaged spices available it makes it
easier for the consumers to cook food and is more convenient. This can further be highlighted
with AC Nielsen's survey in 2005 where usage of packaged spices in rural areas is 60% whereas
the percentage has risen to 85% in urban.
Product Placement:
The consumption of “Shan Foods” spices is mostly in the urban areas of the country. In rural
areas there still exists a perception where people use homemade spices as they believe that
gives the correct flavor to their food.
Females aging from 18 to 45 years compose the main target market of Shan Foods. This is
because of the reason that in our part of the world, women are mostly related to the food and
cooking. Hence, Shan Foods develops products that are according the eeds and wants of these
women no matter if they are stay-at-home or working, single or married ones.
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Executive summary:Dawlance is a Pakistani manufacturer of a major home
appliances based in Karachi founded in 1980. Its was acquired by
Jstanbul based Arcelik in 2016.
Dawlances has three factories two sites in Karachi and one in
Hyderabad ,with a total of 4000 employees .its manufacture’s
washing machine, freezer, split, air conditionor.
In order to provide quick and timely delivery of their dealer they
have got big warehouses located in almost all big cities and towns.
They believe that timely of their products to the dealer, is one of
an important element in the success in Pakistan.
Dawlance is the largest company in Pakistan engaged in
appliances business .The company has identified some new
markets in asia and south asia.
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e
Introduction:
Dawlance is one of the largest companies in Pakistan engaged in appliance business. It started
its business with refrigerator manufacturing in 1980. Now it is a well-known and famous name
in home appliance industry with a vast range including refrigerators, deep freezers, washing
machines, small appliances, air conditioners, televisions etc. Dawlance has a prominent and
significant market share in Pakistan because it provides its consumers the benefits of modern
lifestyle and world-class innovative products, unmatched
nationwide customer support, a vast dealer network and after- sales-services throughout the
country. The other key players in the Pakistan industry besides Dawlance are LG, Haier, Waves,
PEL and Orient.
Specific to refrigerators, Dawlance has a variety of series of stylish and innovative technology
based refrigerators. They include Reflection series, H-Zone series, Designer series, Monogram
series, Aero Design series, and Horizontal series.
The purpose of this assignment is to find out the factors which help Dawlance to retain its
customers for a long time and creating customer life time value
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Marketing Mix:
Product:
The object of Dawlance is to provide refrigerator to all people who fall in lower middle, middle,
and upper middle class in this country such that most of the families should have refrigerators
in their home because they enhance better quality of life. Dawlance has got products, which
are as per international standards and carry all the basic features, which need in any such type
of appliances.
Dawlance believe that whatever they provide to their customers should be durable and
reliable. All the products, which Dawlance market, are durable enough and customer can keep
on using them for quite many years without any problem. It provides its refrigerators, 3 years
compressor guarantee and 1 year chest freezer, and free service in spare parts under normal
use.
prices and are attracting substantial portion of market. Further more competition between
Shan Foods and National Foods is very intense and they offer products at comparable prices.
Any move to change prices is aggressively answered
Shan Foods offers its products at different prices and different quantities. Pricing policy of Shan
largely depends on Stock Keeping Unit (SKUs). Currently, the price of 50grams of packaged spice
is around Rs.45-50 whereas the 100grams one is available at Rs.80-90
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Price:
Dawlance has got around 52 models in their refrigerator product line. From the price list and
discussion had with their management, it appears that they have position their product pricing
in such a way that their main focus is middle and upper middle class. However, they have some
selected range for upper class as well. Product-wise price list enclosed in appendix for
reference.
Dawlance has got a policy that their all product price should be the same in all cities and town
in Pakistan market. Dawlance bear freight cost and make their product available to their dealers
irrespective of where they are located. For this, they give uniform margin to their dealers
irrespective of whether he is big or small.
Dawlance consider pricing as one of an important element of marketing mix. It believes that
their retail prices should be uniform all over the country irrespective of whether customers buy
from Peshawar or Karachi. In order to maintain a uniform price all over the country, Dawlance
bear transportation charges and make the product available at cost price at dealer premises.
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Promotion:
Dawlance promotion budget is around 1.75% of their turnover. 40% spending of their budget is
Print Media, 20% goes on TV, 20% on Out door activity and balance 20% on Sales Promotion
activity. They believe that print media and out door activity help them to reach to their target
customer. Due to satellite transmission and having multi-channels, it does not pay one unless
you have very huge budget to spend on this media. On promotion, their spending is more on
consumer incentive schemes. Since it pay them and there is direct relationship between sales
and consumer. Further, it gives customer a direct benefit in shape of price reduction.
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Place:
Dawlance has got around 800 dealers all over the country. Dawlance ensures that its
refrigerators are available almost in all appliances markets of Pakistan. They have got 80%
penetration in dealer sector. One can get very easily their product in any city or small town of
Pakistan.
Dawlance has got various types of dealers according to their potential. Around 25% of dealers
are "A-class" dealers who sell over 1000 units and above per year. "B-class" dealers are those
dealers who sell from 400 units up to 999 units per year. They are around 50% in total dealer
and the rest are in best 25% of "C-class" dealers sell from 200 up to 399 units per year.
In order to provide quick and timely delivery to their dealers: they have got big warehouses
located in almost all big cities and towns. Whenever they get order from the dealer they try to
provide supplies to their dealer from closest warehouse. In case stock is not available in the
warehouse then it is delivered directly from Hyderabad Factory. The maximum delivery time
incase stock is delivered from Hyderabad Factory is four (4) days. However if supply is given
from closest warehouse then hardly it takes 2-3 hours time. They believe that, timely delivery
of their product to the dealer, is one of an important element in their success in Pakistan.
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Competition:
•
Orient
•
PEL
•
Haier
•
Sony
•
Panasonic
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GLOBAL PLACES WHERE THE BUSINESS EXIST
It is exporting products to various
Libya, Nigeria, Sudan, Kuwait, Iran and Iraq.
countries
like
UAE,
Saudi
Arabia,
Qatar
PAKISTANI MARKET:
Dawlance is the largest company in Pakistan engaged in appliance business. Present Market
Share of Dawlance product is: refrigerators 65%, Washing Machines 35%, Microwave
Oven 40%, Chest Freezers45%, and Air Conditioners 15%. Its refrigerators are available almost
in all appliances markets of Pakistan .They have got 80% penetration in dealer sector . One can
get very easily their products in any city or small town of Pakistan.
NEW MARKER OPPORTUNITY:
The company has identified some new markets in Africa and South America which have
similarities to Pakistani markets.
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BIBLIOGRAPHY:
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