BILAL ALVI (7786)FAHAD MEHMOOD CHHOTANI (9278)HAMNA HUSAIN (9158)MEHREEN TANWEER (9079)SHIREEN R. HIRANI (13145)

Executive Summary This project is on Delve Desserts by Shan foods. During the course of this project we will discuss the strategic issues faced by Delve as well as the alternative strategies given by us to solve those problems.Key competitors of Delve are contemporary powdered desserts offered by Rafhan and National. Delve product line consists of custard, pudding and jelly The strategic issue to be dealt with is that despite being associated with Shan Foods, Delve failed to achieve the desired positioning resulting in low brand recognition and failed product launch We have provided detailed critics of why Delve failed which include wrong positioning, limited/exclusive distribution and low brand recognition because of insufficient promotion. The purpose of this report is to provide a strategic solution to make Delve successful

History of Shan Foods Shan Foods (Pvt) Ltd.is aPakistaniproducer of a brand ofspice mixesused inPakistani cuisine.

It began as acottage industryin 1981 bySikandar Sultan who is the CEO of the company.

In 2000 Shan fortified its sales with local penetration in the central and northern regions of Pakistan and officially launched in India in 2004.

After few years it started to explore international market and within a decade it started exporting to 25 countries, which also includes UK, USA, Europe and the Middle East.

Its success can be attributed to its ability to continually identify and respond to the changing consumer needs through Research and Development, stringent Quality Assurance standards and state-of-the-art manufacturing facility.

Shan Foods is a Shariah Compliant business where Shariah guides the business operations.

VISION & MISSIONA global food brand offering premium quality innovative products, which delight our consumers.

Shan, a responsible corporate citizen, adhering to its core values, trusted globally for providing great tasting consistent quality food products.

We are determined to reach every kitchen by diversifying into growing food categories through innovative, healthy & safe products for the ultimate delight of our consumers.

We will enhance shareholders value through sustainable growth, develop strategic relationship with our business partners and ensure safe work environment for our employees.

Delve Launched as premium quality dessert brand by Shan foods on 3rd august 2011 at Marriott hotel, Karachi.

It was another milestone, which includes variety of rich, creamy and flavoursome ranges of Custard, Jelly and one Pudding variant.

Reason: Provide contemporary dessert range as opposed to Pakistani traditional desserts and to diversify into non- masala categories as a true food company.

Delve was a success from the word go and is now available in 7,000 shops inKarachi.

Of Shans overall marketing budget, 20% is allocated on Delve brand.

Delve has currently market share of 10%

How was the idea conceived? Dessert Rs 1.25 billion desserts market.

Contemporary desserts accounted for Rs 800 million.

Rafhan is the clear leader in contemporary desserts but there is no one in the number two position. National Foods has been in the market for six or seven years but their market share is not huge and the gap between one and two is quite large.

Shan sensed this opportunity and wanted to occupy that spot by differentiating in the taste ofthis product and that of the market leader.

Shan was to evolve as a true global foods company. And Delve is just a step towards achieving this goal.

Product Market Structure

CATEGORY PROFILE

DELVE- PRODUCT LINE

Delve product line consists of custards, jellies and pudding.

The custard is available in SKUs of 300 grams and 100 grams. The five flavors offered are: Vanilla, strawberry, banana and mango.

Jelly is available in SKU of 80 grams only. The flavors include: Strawberry, banana, mango, jelly and pineapple.

Pudding comes in a pack of 80 grams and the only variant offered is Caramel.Category Profile (contd..)

Market share- 3%Market share- 10%Market share- 80%Category Profile (contd..)Market share- 7%The major players in industry are as follows:

Price Comparisons

Product offeringsSKUsDelvePrice Rs.Rafhan Price (Rs)NationalPrice (Rs)Custard300 gm656555100 gm353535

Jelly80 gm505050

Pudding80 gm5050-

The idea was to offer a range of rich, creamy and flavorsome dessert that is Simply Wow.

Target Market: Mothers and kids (aged between 7-14years old). Apart from that, custards and puddings are more commonly served in festive occasions.

Positioning: It is positioned as a premium brand.

Pricing: Competitor-based pricing (Rafhan).

Place: The distribution network for Delve includes International modern trade stores like Hyperstar and local modern trade stores like naheed, imtiaz etc.

THE 6 Ps Of Marketing

6 Ps (contd) Promotion: Delve was promoted through ATL activities (hoardings, TVCs, billboards) and BTL activities (taste trials at malls and stores).

Packaging: Delve package is ink blue in color. The company spent almost a year on the packaging to ensure that it was modern, up market and very international in look and feel. The result is dark blue boxes with the red and yellow Delve logo. These no doubt stand out on the shelf, but are also reminiscent of packagingused by Foster Clark for its dessert range

BRAND STATUSDELVE stands forQualityTaste ConvenienceTrust PerfectionAroma

MEASURES TAKEN BY COMPANY Shan foods is not actively addressing the current problem.

Sales force has pressurized the company to incorporate Shan logo on the packages since the response hasnt been satisfactory.

Export market also suggests that associating Shan with Delve could make a great impact on target markets purchase behavior.

Shan logo is expected to appear on the new packages.

Apart from this, no step is being taken to deal with the issue.

STRATEGIC ISSUEDespite being a high quality product Delve failed to achieve the desired positioning resulting in low brand recognition/awareness

PROPOSED STRATEGYBRANDING Revamping the brand By

Creating brand IdentityBrand awarenessBrand Building

BRAND IDENTITY

Since there is little brand recognition for Delve and majority of the target audience are not aware of the fact that Delve is a contemporary dessert range by Shan Foods

To give Delve a known identity it will be re-launched under the banner of Shan Foods in promotions and packaging, to communicate the message of great taste and quality product

At the end of every communication message Delve by Shan will be played to register the brand in the minds of the target audience

On the pack, Shan logo will be added to aid in public recognition. Shan Foods is a brand known for its taste and quality, when Delve is associated with Shan, people will perceive it to be of high quality as they have other Shan products in mind

BRAND BUILDINGBRAND AWARENESS

PROMOTION To create brand awareness and increase brand recall communication will take place through advertisements, making the product more appealing for the target market especially the influencers (children), and the trusted name of Shan will be associated with Delve to crate a quality image of the brand.

Billboards at heavy traffic and high visibility sites around the city to entice customers and create awareness about Delve by Shan

Communicate the brand through new media activities, Delve facebook page to create a buzz. This page will indulge and engage users through quick & easy dessert making recipes and tips.

Launch a Delve Dessert Book, Delve Dessert Treats, including all the desserts that can be made by Delves contemporary desserts range. It will consist of the innovative ways Delve can be used to make delightful and delicious desserts on different occasions conveniently

DELVE DESSERT TREATS

Sponsoring cooking shows and endorsements by experts, such as Zubaida Apa and Bushra Ansari, will create brand awareness and reinforce Delve in the minds of the target market

Enter into strategic allianceswithairlines and restaurantsto incorporate Delve Dessert mixes in theirdessertsuchastrifles, puddings etc. to increase the customer base

DISTRIBUTIONDelve will be available in all retail stores across the city, from big departmental stores to every store around the nook of the street.

No selective distribution positioning the brand as a product for all and not as a premium product available at limited stores

This will induce the devoted/loyal customers of Shan to try their desert range at affordable price

Position Shan Food as a Complete Food Company

Implying

Shan Foods offers not only one food brand but a Complete Food Solution ranging from Masalas to Desserts

DWELL INTO DELVE