2. Shan Foods

3. Introduction of Shan Foods
Came into existence in 1981
Started exporting after a few years
Repositioned as food brand
Deals in
--recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts
Presence in 60 countries

4. Shan foods’ Vision
To be a global leader in food products and social responsible company that attains its quality standards so that Shan stands for tradition, trust and good taste.

5. Shan foods’ Mission
To continuously develop and produce quality products that meet the customers and markets demands, compatible with applicable regulatory requirements.

6. Pakistan Food Industry
Pakistan is the world’s ninth largest market with an estimated 150 million consumers.

7. Major Food Exports of Pakistan
S.No.
COMMODITIES
VALUE (US $ ) 1
Rice
1210.9 2
Fish and Fish Preparations
165.9 3
Fruits
127.3 4
Spices
21.5 5
Meat & Meat Preparations
41.2

8. Overview of Spice industry of Pakistan
7000 spices and salt grinding units
Tremendous growth in last decade
Factors behind increased demand
-- changing lifestyle
-- sub-continental style of cooking (good spices means good food)

9. Major Industry Players
Shan foods
National foods
Others
Chef’s Pride
Mehran foods
Ahmed foods
Habib foods
Zaiqa Foods
Kitchen Secrets

10. Market share as competitor

11. Region wise market share

12. Growth Last 4 years Market Segment Shan Products Recipe Mix
Biryani Masala, karhai Gosht Masala etc
Plain Mix
Lal Mirchi, Haldi Powder, etc
Salt
Shan Namak
Institution
All The Products of Shan
Export
All the Products of Shan
Market Segment
2006
2007
2008
2009
Recipe Mix
19%
29%
36%
42%
Plain Mix
22%
28%
33%
46%
Salt 3% 4% 5% 7%
Institution
24%
38%
Export 9%
10%
15%
25%

13. Growth Future 4 Years Market Segment 2010 2011 2012 2013 Recipe Mix
42%
44%
50%
56%
Plain Mix
48%
51%
53%
55%
Salt 8% 9%
11%
13%
Institution
39%
49%
Export
28%
33%
40%

14. Products of Shan Foods Delectable Biryani Vegetables Authentic Curries
Stir Fries Foods
Lavish Fried Food
Sumptuous BBQ
Yummy Chaat

15. Products of Shan Foods Biyani Mixes Biryani Masala Bombay Biryani
Fish Biryani
Karachi Beef Biryani
Malay Chicken Biryani
Memoni Mutton Biryani
Pullao Biryani
Punjabi Pullao
Sindhi Biryani

16. Curry Spice Mixes Kofta Spice Mix Meat Masala Spice Mix Chicken Masala
Roghan Josh
Achar Gosht
Korma Spice Mix
Muragh Chholay
Passanda Spice Mix
Stew/Dopiaza Spice Mix
Meat Vegetables

17. Stir Fried Foods Kat-a-Kat Spice Mix Karahi/Fri Gosht Spice Mix
Keema Spice Mix
Liver Spice Mix

18. Deep Fried Foods Chappli Kabab Spice Mix Chicken Broast Spice Mix
Lahori Chargha
Fish Spice Mix
Fried Chops/Steaks Spice Mix
Lahori Fish
Shami Kabab

19. Barbeque Bihari Kabab Seekh Kabab Tikka Boti Chicken Tikka
Tandoori Masala
Tikka Seekh Kabab

20. Shan Pickles Mango Pickle Lemon Pickle Mixed Pickle Garlic Pickle
Chilli Pickle

21. Vegetarian Foods Achar Masala Daal Masala Spice Mix Pani Puri
Chana Masala Spice Mix
Pav Bhaji
Vegetables Spice Mix
Aaloo ki Bhujia Spice Mix

22. Instant Foods Dahi Bara Mix Easy Cook Haleem Mix Pakora Mix
Shahi Haleem Mix
Khichra Mix 

23. Dessert Mixes Gajar Halwa Lauki Halwa Rasmalai Mix Gulab Jaman
Sheer Khurma Mix
Special Pista Kheer Mix

24. Break Fast Hunter Beef Spice Mix Egg Spice Mix Paya Spice Mix
Nihari Spice Mix
Haleem Spice Mix

25. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

26. Strengths
Shan food has a very strong heritage and legacy behind it which has given it a strong goodwill in households.
Shan foods enjoys an approximately 50% market share in the recipes mixes category.
Shan foods is a leading exporter of food items from Pakistan providing it an opportunity to tap the large global market which helps it to expand at a rapid pace.
Shan has a wide range of products and SKU’s available consolidating its presence in various niches and keeping its customers loyal to the brand.

27. Weaknesses
Shan is not present in Jams and marmalades, Ketchups categories like National foods thereby loosing an opportunity market. Many loyal Shan customers purchase National products in these categories which is causing loss of potential sales.
Shan has a low market share outside Karachi in the Punjab market where National enjoys market leadership. This is due to weak distribution of Shan products in Punjab market which is causing loss of potential sales.

28. Opportunities
Shan can vertically integrate to produce its own raw materials which will not only reduce costs but will also provide it more control over the quality of input.
Shan currently has a very low advertising spend in the FMCG industry. It can deploy brand activations and other innovative campaigns to switch customers from the loose/ unbranded segment to Shan products.
Shan can also horizontally expand its scope like national foods and enter the other related food categories where it can tap its loyal customers with minimal extra efforts.

29. 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 prevalence of counterfeit products is also threat to Shan causing loss in goodwill and potential sales.
The emergence of newer brand with deep pockets can also damage Shan’s market share due to heavy advertisement while keeping the product quality close to that of Shan.

30. What Shan foods has achieved and future targets
Quality control since 1981
Quality assurance system since 2000
Food safety management system since of 2007
Total quality management target if 2010
Third party lab certification target of 2012
ISO 22000, the ISO version of HACCP (Hazard Analysis And Critical Control Point)

31. Strategic & Marketing Analysis
Demographic Factors:
-- Females 18+
-- Middle lower class and above
Geographic Factors:
distributors all over Pakistan
-- Regional preferences of different brands
Behavioral factors
-- True Pakistani taste
-- Catering to changing lifestyles
-- Purchase pattern varies according to seasons

32. Analysis of the product portfolio
Products introduced only after testing
Portfolio comprises 6 broad categories like recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts.
Offering for Every occasion and every type of taste
Top of the mind and top if the heart brand for Recipe mixes spice Mix category

33. Distribution plans Presence in 60 countries
Focus on International Modern trade and Local Modern Trade
Area wise policy of distribution
500 + distributors in pakistan alone
Focusing on retail, wholesale, hypermarkets and international chains.

34. Success story in terms of figures
modern factory covering an estimated area of 100,000 sq. feet, equipped with lates in house lab facilities
estimated investment of Rs.100 crores
almost 1000 employees working diligently
Recipient of many national and international awards
More than 50% growth rate with sales of Rs. 2 Billion

35. Strategies Product Strategy -- Market Development Strategy
Product Line to new customers
-- Product Development Strategy
Product Lines (Spices, Pickles, etc)
Vegetable mixes for country like India
Meat Mixes for Pakistan
-- Penetration Strategies
Cater the Untapped markets
Genuine flavors in spice mixes
Niches like Diet conscious people

36. Conclusion
Shan Foods is a very progressive organization which understand the customer needs and wants.
And through quality, customer satisfaction and good marketing the company is able to establish a brand name.