Federal Urdu University Presentation for Shan Food from BBA Department.
Course Marketing Management by Mubashir Ahmed BBA student in 4th semester.
Topic cover:
Introduction
Products
7P's of marketing
Marketing Management Task
SWOT Analysis
Ansoff Matrix
BCG Matrix
Conclusion
Hope this PPT helps you.
Thank you
3. 3 3
COMPANY INTRODUCTION
Shan Foods began as a cottage industry in 1981 by Sikandar Sultan, the
managing director. A few years later it started exporting to Europe,
United Kingdom, United States, and the Middle East Within a decade.
Shan was exporting to 25 countries. In 2000, Shan increased its
penetration in the central and northern regions of Pakistan and
officially launched in India in 2004 Shan exports to 65 countries making
it Pakistan's largest exporter of packaged spice, food, and nice mixes.
The company also sponsors cooking competitions
"The biggest success is that you have
contentment. Hopelessness is not
allowed in our religion. You should be
persistent. If you are constantly working
towards some goal, divine help is also
there for you. If you don't have a goal
unfortunately things would go bad for
you." Sikandar Sultan
Founder and Chairman of
Shan Foods Private Limited.
5. 5 5
7P’s OF MARKETING
PRODUCT
Shan can be broadly categorized into 6 categories, with
multiple subcategories. The different product offerings of
Shan Foods are:
• Recipe Mix
Biryani Mixes, Stir Fried Foods, Curry Spice Mixes, Deep
Fried Foods, Barbeque, Vegetarian Foods, Instant Foods, and
Breakfast.
• Plain Spices
Khushbudaar Lehsan, Zaiqedaar Adrak, KhattaKhatai, Qasuri
Methi, Karara Zeera, Taiz Laal Mirch, TaazaDhaniya, Zaafrani
Garam Masala, Teekhi Kaali Mirch, Khaalis Haldee.
• Dessert Mixes
• Pickles
• Salts
PRICE
The pricing of all Shan offerings varies and depends on each
Stock Keeping Unit (SKU). However, the price ranges for five
(out of six) categories of Shan product offerings are as follows:
• Recipe Mix: The Recipe mixes range from Rs.80 to 95.
• Plain Spices: The Plain spices range from Rs.40 to Rs.50.
• Dessert Mixes: Desserts are all priced at Rs.65.
• Pickles: Pickle pricing is Rs.235 for 1000 grams.
• Salts: Iodized salt is priced at Rs.60 (800 grams)
PLACE
Supply Chain team that shipment of goods must reach their
destinations well in time to match market trends and customer
demands. Shan has a separate Sales department focusing on
International Modern Trade (IMT) Modern.
The distribution channels of Shan Foods include:
• Retail
• Wholesale
• Hyper Markets
• International Chains
Shan is the largest exporter of premium quality packaged spices,
spice mixes, food mixes, and rice mixes to USA, Canada, UK,
Germany, Holland, Malaysia, Middle east, South Asia, Japan,
Singapore, Australia, and many other countries of the world. It
also exports its products to the Far East, Bhutan, Japan, Malaysia,
Singapore, and Thailand etc. Now also China.
PROMOTION
The company’s marketing strategy is customer oriented i.e. Shan
foods want to promote its products in Chinese Muslims regions.
These days Shan Foods is celebrating the Pak-China friendship
through a new TV ad that has become popular all over the world.
6. 6 6
MARKETING MANAGEMENT TASKS
Shan foods target online market of China
Shan foods recent target is to introduce its products in Chinese Muslim Areas, like;
Xinjiang, Ningxia Hui, Gansu, Yunnan, Beijing, Shanghai.
Shan Foods develops products that are according to the needs and wants of Chinese customers no matter if they are
stay-at-home or working, single or married ones, Seafood lover and Spices lover, and Muslim Restaurants in China.
Challengers
The big challenges of Shan foods are,
1. Spicy Szechwan Five Spice Seasoning,
2. Frontier Five Spice Powder,
3. CNsnack Sichuan Flavor Hot-pot Seasoning Hot Pot Soup
4. Bear coming
5. NOH Foods of Hawaii
Point of Difference Shan foods, no doubts provide high Quality products as well as rich in taste and provide colorful
products with great aroma in low price.
• Demographic
Factor
• Geographic Factor
• Behavior Factor
Segmentation
• Chinese Market
• Product
• Price
• Distribution
• Promotion
Targeting
Positioning
Marketing
Mix
Fig No.1 Process of STP
Methodology
Different marketing strategies were analyzed in this case study to check the
effectiveness of Shan foods entry in Chinese e-commerce market. The significant
marketing mix elements as well as STP (Segmentation, targeting, positioning) aspects
were analyzed in Chinese market. Moreover, SWOT analysis was applied to check Shan
Foods Strengths, weakness, opportunities and threats in Chinese e-commerce market.
Factors affecting consumer behavior of China
Segmentation, targeting and positioning (STP) process was applied to check the Chinese
market behavior because this process is the foundation of marketing strategy. The steps
of STP process as follow to meet the stage of marketing mix show‘s in figure1.
7. 7 7
SWOT ANALYSIS
S W
O T
STRENGTHS
Company has a very strong heritage and legacy behind it which
gives it strong goodwill in households. Shan foods enjoy an
approximately 50% market share in the recipes mixes category
and are a leading exporter of food items from Pakistan,
providing an opportunity to tap the large global market. It will
help it to expand its market share at a rapid pace. As of now it
has been launched in China and targeted the Chinese Muslim
community through online sites. Shan has a wide range of
products and SKUs available consolidating its presence in
various niches and keeping its customers loyal to the brand.
WEAKNESSES
Shan has newly entered the Chinese market. Although the
Chinese market by self a huge and strong market therefore
it‘s very difficult for Shan foods to compete with the famous
brand of China. For capturing some position in the Chinese
market, the company needs time and determination.
OPPORTUNITIES
Company can vertically integrate to produce its own raw
materials which will not only reduce costs but will also
provide it with more control over the quality of input. Shan
currently has a huge advertising expenditure in the FMCG
industry due to a special ad on Pak-China friendship. It needs
to arrange brand activations and other innovative campaigns
in China to switch customers from the non-branded segment
to Shan products and has an opportunity to expand its
products in China‘s market.
THREATS
The biggest threat to Shan is the high inflation in Pakistan
coupled by a global recession which is putting pressure on the
profits and sales. The commonness of counterfeit products is
also threat to Shan causing loss in good will and potential
sales.
So, it‘s difficult to Shan to get any Status there and also
change the taste of Chinese foods.
8. 8 8
ANSOFF MATRIX
Market Penetration
Market penetration means expansion of the market. This
strategy involves extending those current products that are
existing in the current market. According to this strategy, its
main purpose is to attract customers through promotions and
discounts to increase its sales volume. Shaan Foods and
National are the biggest competitors of each other from the
very begging of time they both offer mostly similar products in
the market. Some notable Current products of Shaan foods
are commended below that are leading in the current
market.
1. Bar-B-Q range
2. Biryani Masala Range
3. Pickles
Product Development
In the product development approach, the Product is new but
the market is already present, before launching a product
marketers do healthy research to understand the needs and
demand of their customer and after that process the
development of a product starts which satisfy and fulfill the
needs of consumers. Shan launched its Product "SHOOP
NOODLES" In 2013 it not only become famous in its target
market which is kids but also in Youngers because of its eye-
catching tagline "Mita do Bhook" and its easy-to-make process.
They offer a variety of flavors and the most demanded flavors
are "Bar-B-Q" and "Chatpata". The product is tasty as well as
healthy too.
Market Development
In the market development approach, the product is existing but
the market is new, this occurs when marketers identify the need
of their product in the new market whether the product is
demanding or declining. They choose this strategy when the
Organization is in the expansion process of its products. Shaan
Recipes Mixes and Plain Spices are those products that are
existing but the market is new. They launched it in the USA,
Canada, and other countries on international levels because of
the high demand for it. Pakistanis living out their want the same
aroma quality and taste of their foods which they easily avail in
Pakistan.
Diversification
In the diversification approach, the product is new as well as the
market. The company goes for this approach when its Market
penetration approach is declining or in the fall stage. The
company also launches a new product in a new market to attract
and gain more customers and become a player in it. Shaan is
about to launch its Ready to Eat line in which they are Offering
food that is already cooked all you have to do is just heat it up in
this line it Includes (Chicken Tikka, Chicken Kabab, Malai Boti,
Gola Kabab, Chicken Boti etc.).
9. 9 9
BCG MATRIX
Low
High
MARKET
GROWTH
RATE
Low
High
RELATIVE MARKET
Dogs
Those products which have low market share and low
market growth. The company should liquidate the
product after some time if they are not giving any kind of
profit or market share. the product which Shan Offers and
it Fall in Dog Quadrant are:
1. Meat Tenderizer
2. Chapli Kabab
3. Shami Kabab
4. Pakora/ Bhaji Mix
5. Hunter beef
Question Marks
Those products which have High growth market but low
market share. These products require enough amount of
Investment to push them in Star category. Products
include in Question Mark category have chances that they
might fall in Dog category. Shan Foods products which fall
in Question Mark are:
1. Vegetarian Range
2. Oriental Range
3. Fried Range
Cow
In this quadrant the product High market
share and low growth market. These
products have high profits but the
Investments are low. In Cow quadrant the
products are well established. Shan Foods
which are part of Cow Quadrant are:
1. Curry range
2. Haleem Range
Star
Star include those products which have High
market share and High market growth. They
are the main player in Business also operate
larger amount of cash.
1. Shan Bar-B-Q range.
2. Shan Biryani Masala range.
These two products of Shan hold High market
share and High market growth.
10. 10 10
CONCLUSION
Recommendations
Although, Shan foods have an effective marketing program to compete in the global market. But still, there are many initiatives
that the company has to adopt. The company has to introduce some famous celebrities to increase the purchase intentions of
the Chinese citizens. Moreover, Shan foods should use internal branding and brand credibility to increase the customer loyalty.
Communicating shopping values can also be effective to increase the sales volume. Company should also adopt innovative
strategies to reduce consumer confusion between domestic and international brands.
Conclusion
Spice industry all over the world can be referred to as a subset of food industry. Spices contribute a considerable share in
Pakistan‘s imports and exports. Within this industry 40% market share is with non-branded loose spices and the rest with
branded packed spices. Shan foods is the leading manufacturer of branded packed spices and holds 50% of the share in 2017
while 45% is occupied by other manufacturer such as National foods, Mehran spices, Habib spices etc. we can conclude that
Shan Foods have got all the factors that are necessary for growth and prosperity and the company is heading on a smooth
journey towards the achievement of its mission and vision. It will get success as well they got from foreign countries as will get
from China already.
