Table of contents:

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Acknowledgment
Executive summary
Introduction
History
Vision
Mission

ACKNOWLEDGEMENT:
We would like to pay our praises and humblest thanks to AL-MIGHTY ALLAH
the most Merciful and Beneficiate of all, who bestowed us with the ability to
complete this project.
We would like to express our gratitude to all those who helped us during the whole of our
project. We gratefully acknowledge the help of my supervisor, Madam Tanzeela who offered
us invaluable advice throughout the project. She has spent time and energy to aid in the
completion of this project and none of this would have been possible without her patient
instructions, insightful criticisms and expert guidance.
Finally, we pay regards of gratitude to our parents, as they and their prayers for our
success are always been a pillar of strength for us in our life.

EXECUTIVE SUMMARY:
Shezan international limited was incorporated at 1964 as pioneer juices in Pakistan having mission to produce the
largest food processing unit to meet the countrys local as well as export needs. Since then it has continued to
provide quality products to its customers with product and packaging innovations .This report covers broad areas
of marketing, finance, management and operations of Shezan international limited .An important part of this report
comprises of financial analysis of Shezan international limitedwith its two major competitors Nestle and Tops.
We also have analyzed the current business strategies of Shezan international and based on theresults
of financial ratios and other market and industry analysis, we have proposed some newstrategies.These new
strategies aim to build a better image for Shezan international.

An insight into Shezan:

Introduction;.
Shezan International Limited is a Private Limited Company, with the main objective to set up an industrial
undertaking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from fruits and vegetables.
Shezan International Limited was conceived as a joint venture by the Shah Nawaz Group of Pakistan
and Alliance Industrial Development Corporation of U.S.A. The agricultural background of the Pakistani
sponsor sinduced them to establish this agro-based industry. Taking advantage of abundance of fruits available in
Pakistan and the advanced technology provided by the American partners, Shezan became a pioneer in the field of
converting fruits into pulps, concentrates and juices. Today Shezan is the largest food processing unit having
developed and installed the capacity to meet the country's local as well as export needs.

Brief History
Shezan Company was incorporated on May 13, 1964 as a private limited company, with the objectives as set out
in the Memorandum of Association in general and in particular to set up an industrial understanding for
manufacture of juices, squashes, sherbets, jams pickles and preserves from fruits and vegetables. Nature has
blessed Pakistan with an ideal climate for a wide range of delicious fruits. Over the centuries Pakistani experts have
acquired and developed unique strains of exotic fruit varieties, unmatched for their rich flavor and taste Shezan
International Limited was conceived as a joint venture by the Shah Nawaz Group of Pakistan and Alliance
Industrial Development Corporation of U.S.A in1964. The agriculture background of the Pakistani sponsors
induced them to establish this agro-based industry. Taking advantages of abundance of fruits available in Pakistan,
and the advanced technology provided by the American partners, Shezan became pioneers in the field of
converting fruits into pulps, concentrates and juices. Today Shezan is the largest food processing unit having
developed and installed the capacity to meet the countrys and export needs. In 1971 the Shah
Nawaz Group purchased all the shares of Alliance Industrial Development Corporation with the permission
of the Pakistan Government. The Company has since shown sustained growth in both the domestic and exports
fields. The Company has been steadily expanding its production capacity over they ears. In1980-81 a separate unit
was installed in Karachi which now caters for Karachi, Sindhand export demand. A new bottle filling plant was set
up in1983 in Lahore unit increased the capacity five-fold. An independent Tetra Brick Plant was commissioned in
1987 making us the leading manufactures with comprehensive range of production in the fruit processing field in

Pakistan. Shezan remains amongst Pakistans largest food processing units, 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 198081, a separate unit was
installed in Karachi, which now caters for Karachi, Sindh and export demand. A bottle filling
plant was set in 1983 in Lahore, Punjab. An independent Tetra Brik plant was commissioned in
1987. In 1990, it was decided to install a juice factory at Hattar, Khyber Pakhtunkhwa,
Pakistan.Shezan International's head office is located in Lahore, Pakistan. In Canada, Target
Foods is the authorized distributor for all Shezan products and in England, Citi TRADERS UK
Ltd and IS TRADERS LTD are the authorized importer and distributors. They carry all the
import and distribution of juices, jams, pickles, chutneys, sauces, syrups and squashes.

Products:
Near the end of 2008, Shezan introduced an energy drink brand to Pakistan. This launch
coincided with concentrated efforts to gain larger market share in Karachi. Its induction in early
2009 was part of those efforts. Another effort was the 2008 event "Juice Day", arranged in PAF
Museum.

Controversy:
Shezan has been the frequent target of controversy due to the religious affiliation of its owners.
Several campaigns led by religious conservatives have in the past targeted Shezan, calling for its
boycott, and subsequent ban.
Amongst these groups are Khatme Nubuwwat, who have openly called for Muslims to boycott the
company and its beverages, declaring on its website and pamphlets:
"...The notorious Shezan drink factory is owned by Qadiyanies (derogatory term for Ahmadis).
Economically this factory is the backbone for the Qadiyanies. This company supplies the 'Petrol' for
the vehicle of false prophet hood...

Shezan products ban

In 2012, campaigns by traditionally conservative Islamic groups found a more liberal voice,
amongst these were lawyers from Lahore Bar Association (Asia's biggest bar
association)and Punjab University students, who also called a boycott to the Ahmadi-owned
company and a ban of its products on their premises. Following protests from students, there was
an unofficial ban placed on Shezan products at Punjab University. Soon thereafter, The Lahore
Bar Association also banned Shezan products from its premises and subordinate court

complexes, threatening tough actions against anyone found buying the drink. The move came as
100 lawyers unanimously voted for the ban on Shezan drinks and products.
In the same year, six shops owned by the company were destroyed, and a company worker hurt

Attacks
As a consequence of the numerous initiatives to boycott Shezan products in systematic AntiAhmadiyya campaigns, several attacks have been recorded against Shezan factories. In June
2010, unidentified assailants stormed a Shezan factory after which high-explosive bombs were
detonated that left four dead, and many injured that came weeks after an attack on
two Ahmadiyya mosques during Friday prayers left 94 Ahmadi worshipers dead and 120 injured.

Vision:
To be known as leader of quality products in the region. Dedication to quality is a way of life at
our company. In its activities the company will pursue goals aimed at the achievement of 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. To pay its role in the economic development of the country and to
enhance quality of life of its people The vision statement should be brief and simple enough to understand by
the stake holders. It should be specific and depict the clear picture of the company.

Mission statement
Our mission is to provide the highest quality fruit and vegetable related juices and products to retail and food
services customers. We will accomplish this by maintaining a tradition of pride in our products, growth through
innovation, integrity in the management of our business and commitment to team management
and quality improvement process.
The current mission statement of Shezan international is very market oriented where as in recent perspective the
use of customer oriented mission statements are better to understand by the customers as well as they are easy to
attach with them emotionally.

Values
Integrity & Ethics
Shezan has an open disclosure policy and transparent processes. All business activities transactions are carried out
honestly and with fairness; results are achieved through demonstration of honest and ethical behavior
People
Have passionate people with intelligent and firm approach towards business. To facilitate the people Shezan gives
them challenging opportunities, training, and fun loving environment ,necessary resources and facilities. Public
recognition of talent is a priority.
Innovation
Innovation is the way of life at EFL. It is valued, encouraged and rewarded in all aspects of operations.
Safety, Health & Environment
Shezan manages and utilizes resources and operations in such a way that the safety and health of their people and
neighbors.
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Product Mix
Shezan International offers variety of products. Shezan is one of the giant in the business and itsportfolio consist
several products. It majorly operates in the ,
o Pickles,
o Sauces,
o Salad dressing sector,
o Juices,
o Ketchups
o Jams
o Tea whitner
The company is involved in the processing, manufacturing ,trading and selling of these items.

Objectives:
Objectives are the steps which you take in practical to get or achieve short term as well as long term goals. The
objectives can be of three categories depending upon the time frame attached or associated with that goal, it may
be short range, medium or intermediate range and long range. As it has been so clear by the mission statement of
Shezan international that what are their major and prime objectives but let us list them here again to make it quite
clear, simple and easy to understand.
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To put its all efforts to become industry leader in the industry.

To keep focused and determined to provide best quality fruits and vegetables product
To be committed to provide excellent and quality juices and nectars to their consumers
To keep an eye on the fruitful investments and opportunities in new projects
To achieve better production facilities
To manage the operations of the company in effective and efficient way
To cope up with the technological advancement and keeping up to date

Industry Structure
The beverage industry of Pakistan has seen many rise and fall but one can say with full assurance that it has
growing with the years. The industry consists of the product categories such as soft drinks, juices, syrups, milk and
squashes, although Shezan international doesnt have all these mentioned categories yet it falls under the
beverage industry. According to the Stats there are currently 170 units operating and both upstream and
downstream industries have on rise and are growing significantly. There is very high profit margin in the industry
and has witnessed a significant increase over the years. The growth of this sector has been hit badly with the
decrease in purchasing power of the consumers. Inflation and conditions of Pakistan has caused the growth a bit

slow. Poverty has been increasing in Pakistan and thus the purchasing power is decreasing with the years.

The competition has also increased in few years due to easy import of the products. Research has also shown us
that the term of health consciousness is widening its arms veryrapidly and just because of this consumer prefers to
have low calorie and diet juices or squashes rather than the regular ones. Future growth of this sector and industry
is more likely to rise on a slower pace because of the intense competition between the local and imported products.
The more innovative products will come up in the market making consumers to think twice to purchase a product.
Distribution of the products is more likely to increase up to the far rural areas with time and this factor is very
important in the growth of this industry. It is more logical to think in a way that people will get aware and aware
about the products and thus the increase in sales and revenues will occur which in turn will make this industry
grow.
The overall industry attractiveness and industry structure is better illustrated by Porters five
forces model,

The juice industry is attractive for new market entrants. The reason being that due to high demand it is easy to
achieve economies of scale. The government policies are also favourable for the industry and the exit barriers are
not too high as well.
The buyer strength in the industry is however is high. Many substitutes are available and thes witching costs are
low. The same is for supply side which is good for producers as it means less bargaining power of suppliers.
Supplier switching costs are low and firms can and do forward integration. As far as substitutes are concerned,
there are number of substitutes available. These juices are really close substitute offering the same benefit. The
competing brands also have a similar product identity or perception. The industry is growing as new entrants are
continuously coming.
This has increased the competition to a great deal.

Competitive strategy:
Shezan has the highest production capacity as compared to its competitors. Shezan is very strong name and can
afford to have super production facilities .Shezan international is using cost leadership strategy in which all of the
efforts are made to minimize the costs and to provide the masses with your low cost product. Shezan with this
strategy is quite successful in the market and is able to cope up with the competition quite effectively and
efficiently. On the other hand Nestle uses the differentiation strategy. It attacks the market with differentiated
products but on high price thus providing room for Shezan to sustain in the market with targeting low income
segment massively.The strategy of Shezan gives advantage as there are number of suppliers in the market that
supply material to the industry. But Shezan gets its raw material from its on farms to get the advantage over its
competitors and to reduce the suppliers bargaining power (Backward integration). Shezan provides the same
product as its competitors are providing, as bargaining power of buyer is low and many.

Sangam tea whitener:

At December 25,2012 Shezan launched its tea whitener brand Sangam at a ceremony in
Lahore. Shezan commonly known as a renowned company for manufacturing of a wide range of
food products like jams, jellies, juices, syrups, pickles, ketchups etc. has first time entered the
competition in tea whitener marketing mostly across Punjab and Khayber Pakhtoonkhwa
provinces.
This arrival in the dairy industry will further strengthen Shezans sales volume besides giving its
customers another option of a quality consumer product.

Buyer Analysis
Tea is the most popular drink in Pakistan and holds significance in local culture. It is one of the
most consumed beverages in Pakistan. Pakistan is among the largest importers of tea in the
world. Tea is usually consumed at breakfast, during lunch breaks at the workplace, and in the
evening at home. Although green tea is becoming increasingly popular, tea with milk is still the
most popular form of consumption of tea in Pakistan. People use different type of milks in their
tea. Unbranded milk from milk shops, Tetra Pak all purpose milk are the major milks used in
making tea. In Pakistan social classes A+ and A, milk powder was used in the milk. This enabled
convenience in us ageand there is no storage hassles. Similarly, workplace where tea
consumption is high used powder milk where convenient of usage is required. Milk powder used
was Millac (an all purpose milk powder) and Nido (a milk powder designed for children). At that
time, this was a huge market Niche which was being catered by products not made for this Niche
Niche and currently
market with SEC class A+, Aand B.Engro entered into this market and targeted lower middle
class and lower class through its milk whitener Sangam to replace all purpose milk used
specially in rural areas of Pakistan. Now Engro has launched Sangam milk powder tea whitener
to cater need of middle and upper lower class and work place tea industry.

Demographics:
Sangam powder tea whitener is not bounded to any particular age, gender, or lifecycle stage. It is
intended for all middle and upper lower class. As women of house are usually involved in
purchase decisions for groceries so women can be the main target of this product. It is targeting
the different SEC class as oppose to Sangam liquid tea whitener. Sangam strategy is to penetrate
the masses through low cost and differentiation via taste. Like its liquid counterpart, Sangam
powder is targeting health conscious
people who are concerned about the hygiene of unbranded milk. Convenience is the factor
targeted by Sangam milk powder.

Psychographics:
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Tea whitener is still in the introductory stage in Pakistan. Although Nestle came up with
than ten years ago but due to its high end perception masses in middle and
lower classes were still not aware of its exact usage .As the tea whitener milk powder industry is
in the awareness stage, the main motivator for consumers will be their perception about the
product class as a whole and the brand as well as the rational appeal describing the exact usage
of the brand.

Competitive Advantage
Sangam claims to be the best milk for making tea, as it is the thickest milk. Sangam has its
own plants and dairy farms so it is incurring low cost.

Situation Analysis
The situation of the market in terms of Sangam Milk is this that there are some
opportunities in the market for the product as well as some threats is there. There are
strengths and weaknesses of the companies.

SWOT Analysis
Strengths:
The strengths are:
1-The Thickest Milk
2-Taste
3-Nutritious
4-Hygienic
5-Packaging

Weaknesses:
The weaknesses are:
1-Focus Shifted from Main Product to other products
2-Lack of Research & Development

Opportunities:
The Opportunities are:
1-Target market has big profit margins
2-Bright scope of dairy products
3-Target Market can be located with cost effective media.

Threats:
Major Threats are:
1-Big Competitors
2-Inefficient Labour
3-Animal Diseases
4-Availability of Natural Milk
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COMPETITORS
Olpers
Olpers has done very good advertisements in the past andin especially in the month of Ramadan.
Olpers has been saying SUBAH BAKHAIR ZINDAGI

Good Milk
Good milk has created its goodwill in the past few months.Its Slogan is ROZ ROZ Goodmilk
Piya Karo
Nestle Milkpak
Milkpak has been advertising in the market as KHALISHI SAB KUCH HAI

Customer Analysis

Brand conscious and someone who wants hygienic packed milk.

A customer who wants very tasty tea.
Brand Loyal Customers.
Customer Characteristics

Customer Characteristic
The customer may be a housewife as when they convince the housewife they win, because
usually a woman in Pakistan makes tea for everyone in the house and tea is a group activity.

Marketing & Product Focus

The product will serve the need of the long awaited hygienic milk which will make tasteful tea.
Current Market Goals
Possible New Products in the Future There is a need of new juices and some other dairy products
like lassi, yogurt, raita etc. As we have the plants and resources that we can produce food
specially diary products so we can excel in food and dairy products.

Possible New Markets in the Future

To capture new markets in Pakistan as Packaged milk is used only in bigger cities and fast life
styles like Lahore, Karachi and Islamabad. So there is a margin in the small cities for
improvement. To go global and capture new markets in the world.

Segmentation
In the initial stage we are going to segmentthe market, by segmenting Lahore, Karachi,
Islamabad, and big cities but as Sangam Milk is the convenience good so it will be distributed
heavily.

1-Product Strategy
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Packaging:
Sangam Milk is packed in the tetra pack in 6layers of packaging.
Quality:
The quality of our product is very good. The milk is pasteurized at 78oC killing 98%
germs/bacteria. The milk after pasteurization is then standardized as prescribed by the Pakistan
Pure Food Laws at 35% Fats and 8.9% SNF (solid non fats).
Only for Sangam these standards are superseded to make it a premium quality product. The milk
is the Homogenized. Homogenized milk is then passed through the UHT (Ultra Heat Treatment)
process before it is packed using advance Tetra Brick technology.

2-Price Strategy
The Price of the product is set according to the competitors. The cost is tried to make less and less and the price is
set at the market penetration strategy.

3-Place Strategy
Distribution of milk is set as it is a convenience good so it is provided at maximum stores but it is distributed in
the targeted market. In the future we try to develop our distribution network.

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