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Shan Foods
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Introduction of Shan FoodsCame into existence in 1981Started exporting after a few yearsRepositioned as food brandDeals in
--recipe mixes, plain spices, dessert mixes, basmati rice, pickles and saltsPresence in 60 countries
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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.
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Shan foods’ Mission To continuously develop and produce
quality products that meet the customers and markets demands, compatible with applicable regulatory requirements.
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Pakistan Food IndustryPakistan is the world’s ninth largest market with an estimated 150 million consumers.
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Major Food Exports of Pakistan
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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)
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Major Industry PlayersShan foodsNational foodsOthersChef’s PrideMehran foodsAhmed foodsHabib foodsZaiqa FoodsKitchen Secrets
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Market share as competitor
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Region wise market share
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Market Segment Shan Products
Recipe Mix Biryani Masala, karhai Gosht Masala etcPlain Mix Lal Mirchi, Haldi Powder, etcSalt Shan NamakInstitution 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 19% 24% 28% 38%
Export 9% 10% 15% 25%
Growth Last 4 years
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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% 44% 49% 53%
Export 28% 33% 40% 50%
Growth Future 4 Years
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Products of Shan FoodsDelectable BiryaniVegetables Authentic CurriesStir Fries FoodsLavish Fried FoodSumptuous BBQYummy Chaat
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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
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Curry Spice MixesKofta 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
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Stir Fried Foods Kat-a-Kat Spice Mix Karahi/Fri Gosht Spice Mix Keema Spice Mix Liver Spice Mix
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Deep Fried FoodsChappli Kabab Spice Mix Chicken Broast Spice Mix Lahori Chargha Fish Spice Mix Fried Chops/Steaks Spice Mix Lahori Fish Shami Kabab
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BarbequeBihari Kabab Seekh Kabab Tikka Boti Chicken Tikka Tandoori Masala Tikka Seekh Kabab
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Shan PicklesMango PickleLemon PickleMixed PickleGarlic PickleChilli Pickle
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Vegetarian FoodsAchar Masala Daal Masala Spice Mix Pani Puri Chana Masala Spice Mix Pav Bhaji Vegetables Spice Mix Aaloo ki Bhujia Spice Mix
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Instant FoodsDahi Bara Mix Easy Cook Haleem Mix Pakora Mix Shahi Haleem Mix Khichra Mix
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Dessert MixesGajar Halwa Lauki Halwa Rasmalai Mix Gulab Jaman Sheer Khurma Mix Special Pista Kheer Mix
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Break FastHunter Beef Spice Mix Egg Spice Mix Paya Spice Mix Nihari Spice Mix Haleem Spice Mix
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SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats
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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.
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WeaknessesShan 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.
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OpportunitiesShan 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.
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ThreatsThe 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.
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Quality control since 1981Quality assurance system since 2000Food safety management system since of 2007Total quality management target if 2010Third party lab certification target of 2012ISO 22000, the ISO version of HACCP (Hazard Analysis And Critical Control Point)
What Shan foods has achieved and future targets
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Demographic Factors:-- Females 18+-- Middle lower class and aboveGeographic Factors:-- 500+ distributors all over Pakistan-- Regional preferences of different brands Behavioral factors-- True Pakistani taste-- Catering to changing lifestyles-- Purchase pattern varies according to seasons
Strategic & Marketing Analysis
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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
Analysis of the product portfolio
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Distribution plansPresence in 60 countriesFocus on International Modern trade and Local Modern TradeArea wise policy of distribution500 + distributors in pakistan aloneFocusing on retail, wholesale, hypermarkets and international chains.
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modern factory covering an estimated area of 100,000 sq. feet, equipped with lates in house lab facilitiesestimated investment of Rs.100 croresalmost 1000 employees working diligentlyRecipient of many national and international awardsMore than 50% growth rate with sales of Rs. 2 Billion
Success story in terms of figures
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Product Strategy-- Market Development Strategy
Product Line to new customers-- Product Development Strategy
Product Lines (Spices, Pickles, etc)Vegetable mixes for country like IndiaMeat Mixes for Pakistan
-- Penetration StrategiesCater the Untapped marketsGenuine flavors in spice mixesNiches like Diet conscious people
Strategies
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ConclusionShan 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.