Beruflich Dokumente
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Section B
Assignment No: 1
Table 1
Revenue:
The business portrayed encouraging results with handsome growth in profitability and 4.81% growth in net sales. The revenue is Rs
7.5 billion in (2017-18), Before tax profit was Rs 489.23 million. Company has paid Rs. 1.712 billion to the government on account of
different levies, including sales tax and income tax reflecting the participation in the national economy.
Sugar is one of the main ingredient of finished products and whole production scheduling revolves around the availability of high
quality sugar. purchase agreement has been signed between the Company and Shahtaj for a period from June 14, 2018 to September
30, 2018 for supply of 4,000 Metric Ton sugar at a total price of Rs. 184 million (excluding sales tax). Per Kg price is Rs. 46.20/-
excluding sales tax and Rs. 51/- including sales tax. Total price has been paid in advance and delivery terms is as and when required.
Number of Customers:
Shezan's target market is based on teenagers, students of school colleges and universities. Shezan is also offering products like sauces,
pickles, chutney, vinegar and other kind of house hold product. Through these products they are targeting whole families. They are not
relying on small group of people for their brand. The number of costumer of their brand is 90-110 million people in Pakistan. 80/20
rule is not applying in their case because their products are effectively distributed in all across Pakistan and different areas have
different sales volume. They don’t have B2B client as well that’s why they get sales from all across Pakistan. Sales can varied from
metropolitan cities to small cities.
Geographic breakdown:
Shezan breakdown their sales in to two geographic categories.
1) Domestic
In Pakistan they have 3 major Sole Distributor. Lahore, Karachi and Islamabad. Under Lahore there are 200 distributors, under
Islamabad they have 100 distributor and under Karachi sole they have approximately 200 distributors. Lahore is covering all the
Punjab demographically, Karachi is covering all over the Sindh province and Islamabad sole is covering product distribution and sales
of Azad Kashmir and Gilgit Baltistan.
2) International
Internationally they are not getting enough sales as they are getting domestically. But their presence in international market is gaining
attention due to increase in the revenue from international clients.The company exports its food products to more than 40 different
countries.They have direct distributors in United Kingdom, America, Africa and Canada.Although the Company is known for its
mango juices, but is also a major producer and exporter of pickles, jams and ketchup, the firm has been relentlessly expanding both
into local and in international markets ever since.
But their major chunk of sales is from large cities of Pakistan.Karachi is leading in sales all across Pakistan. This city is generating 20
to 25% of sales for Shezan and it is the highest sales for any territory.
Revenue by month:
Total revenue is divided by the Number of the month to get the monthly revenue.75,00,000,000/12= 625,000,000. Shezan is getting
35-42% of revenue from their juices(All Pure, Twist, Country etc). Sales of juices have trends, it is directly related to the warm and
cold weather. In summer the sales of juices increases and in winter sales get decreased. Month from march to September are the
highest sales month for their juices.
Table 2
Pakistan 98,101,000
Australia 1,484,000
Europe 11,839,000
South Asia 1,075,000
Africa 27,616,000
North America 5,880,000
Market Share:
BCG Matrix
Low
growth
STAR
All Pure lies in this star quadrant because it has both the high market share and business growth as compared to rest of the products of
Shezan juices. All Pure is the best shining product of Shezan which can enhance the profitability of the company.
QUESTION MARK
The second quadrant is known as the question mark. Shezan twist and sauces lies in this category as they both have very low market
share but they have high business growth rate. To bring these two categories in the star portion the company needs a lot of effort to
better position these products as compared to the competitors
CASH COWS
The third quadrant is of Cash cow. Shezan regular juice lies in this quadrant and is categorized as cash cow because of high market
share and low business growth rate. Shezan regular juice can be milked and its profits can be reinvested in other products. Shezan
regular juice is a source of stability for the company as its profits can help the company to maintain its operations and high market
share.
Dog
The Fourth quadrant is called as Dog. Shezan syrups and Jams lie in this category as they have very low market share and a low
business growth rate. The best strategy for Shezan juice syrups is to liquidate them so that other Shezan brands don't suffer from these
syrups and for the Shezan jams the company needs a lot of effort to lift this category so that these jams can be compared with the
quality of national and salman‟s jam.
Market Size:
Market size for shezan is very big. Because in Pakistan they are targeting the whole nation, every age group and demography as well.
For international market pickles and sauces of Shezan getting the highest growth rate. International market growth rate is now higher
than the domestic growth. In past years it grows with the growth rate of 29.47% annually .
Future trends:
In future there is great potential for Shezan in both (International and Domestic) markets. They have to go with technological
advancement and brand promotion. Advancement in technology will help the company to increase its production and to decrease the
cost. Decrease in the cost will lead to more profitability. They also go with related and un related diversification. In related
diversification they have to introduce water, milk, energy drinks and malt. In unrelated diversification they must go with other
businesses like, clothing, and sports. I think that garments and sports related Pakistani items are already in the list of maximum
exporting products of Pakistan. They already have strong presence in 40+ countries in all over the world they can utilize their channel
better for making sales of these products.
1)Political Factor
If government imposes heavy taxes on the industry then it badly effects the industry growth. Currently juice industry has 17 % sales
tax on it.
Labor laws
Labor laws also effect the industry and organization keep on revising the law related to labor force e.g. Laws related to child labor
and the increase he minimum of an employee salaries to Rs. 15000 such laws directly affect the industry.
Political issues
In Pakistan government faces a lot of difficulties from terrorism. Like foe instance the clashes with Supreme Court and other political
issue like corruption and Swiss bankaccounts. Problem of electricity shortage caused the mismanagement and negligence of
government. These all activities badly affect in the growth of industry.
2)Environmental
These laws also affect the industry in such a way that the industry must treat their wasted water and must not pollute the environment
through smoke. So it is compulsion for all industries to follow the laws.
3)Economic Factors
Inflation rate
The inflation rate is about 6%. So if there is increase in inflation rate than there is also increase in price of juices.
4)Social factors
The important social factors are as follows.
Health consciousness
As the awareness in people is rising they are become more conscious about their health.
Demographic trends
Pakistan population growth rate is 1.589% and population is 184,404,791. Birth rate is: 25.3 births/1000 population.
Death rate is: 7.06 deaths/1000 population.Such rate is good in future sales because birth rate increase.
Lifestyle Changes
Day by day people lifestyle is changing so it is very important to stay updates with those changes and take the advantage to attain and
retain the customers. Consumers adopt the trends of changing environment because of modernity as well as globalization.
5)Technology Factors
Lastly the technology also plays an important role in the product. Its factors are as follows.
New products
Business are focusing on concentric and conglomerate diversification because in present era its not possible for any organization to
exist in market for long run by providing just a single product. Organizations have to be diversifying to according to change demands
of the customers and trends.
Product Innovation
Because of globalization innovation become more necessary for the organization, people are becoming aware about the changes being
take place around them and in order to response them organization have to focus on product innovation by introducing new flavors or
change s in packaging etc.
Productivity improvement
Automation and new technology does not matter a lot but it does contribute towards the productivity and improvement. It reduces
labor cost and increase production level.
References
https://www.scribd.com/doc/96503188/Shezan-Strategic-Analysis-Planning
http://shezan.pk/blogs/
https://www.scribd.com/doc/215293027/IMC-shezan
https://fp.brecorder.com/2016/02/2016022419525/
file:///D:/L1F14BBAM0034/7th%20semsester/Consumer%20behavior/Shezan-Annual-Report-2018.pdf
https://www.scribd.com/document/24347939/Shezan-by-Waseem-Aslam
https://fp.brecorder.com/2016/02/2016022419525/https://profit.pakistantoday.com.pk/2018/09/10/that-
unmistakable-shezan-touch/