Selling and Sales Management

Section B

Group (8)
Assignment No: 2

Due date: 14-01-2019

Hareem Nadeem L1S15BBAM0070 (GROUP LEADER)

Maira Irfan L1F15BBAM0109

Muhammad Baig L1F15BBAM0396

Waleed Bin Arif L1F15BBAM0106

Malik Muhammad Yousaf Akram L1F15BBAM0078

Asad Arif L1F14BBAM0034

 Submitted To: Sir Khurram Hamid

Company Name: Shezan International Limited.

History
Initiated in Pakistan in 1964, Shezan International Limited (KSE: SHEZ) was at the start a joint venture between Shahnawaz Group and the
Alliance Development Corporation of USA. Involved in the manufacturing, and selling of juices, pickles, jams and ketchup, the firm has been
relentlessly expanding both into local and in international markets ever since. Subsequently purchasing all shares of the company in 1971,
Shahnawaz Group made it a public limited company and was registered on the Karachi and Lahore stock exchanges. The establishment has been
gradually expanding its production capacity over the years. In 1980-81, a separate unit was installed in Karachi, which now caters for Karachi,
Sindh and export demand. A new bottle filling plant was also set up in 1983 in the Lahore unit, growing the capacity five folds. An independent
tetra brick plant was specially made in 1987 making the unit leading manufacturers with a complete range of production in the fruit processing
field in Pakistan. Shezan has a juice factory in Hatter, Khyber- Pakhtunkhwa and a bottle filling plant in Lahore, which has increased its
productivity significantly. The firm's head office is in Lahore and has distribution offices in the United Kingdom and Canada. Shezan International
offers variety of products. Shezan is one of the giant in the business and its portfolio consist several products. It majorly operates in the Juices,
Pickles, Sauces, Salad dressing sector, Ketchups and Jams. The company is involved in the processing, manufacturing, trading and selling of these
items.

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.

Unit Sales by product type:

Juice brands like "All Pure" and "Twist" drinks grew by 26.49 percent during the year 2017-18.Shezan "All Pure" juice is highest selling product
of Shezan. Pakistani's drink approximately 4500,000 liters juices per month and per day it becomes 150,000 liters. The market of juices is growing
as because the consumption of juices is growing every year and expected to increase continually due to people’s changing lifestyle and more health
consciousness, they prefer juice, especially natural juice on other soft drinks. "All Pure" has a lot of opportunity to grow. When All Pure was
introduce in the market it was follow up by a ineffective promotional campaign. The major opportunity for Shezan All Pure would be through
brand awareness and secondly communicate the benefit of the product to the consumer.

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.

Area Market Share

Lahore (Punjab) 43%
Karachi (Sindh) 18%
Islamabad (Fata, Kpk, GB, AJK) 28%
Other 11%

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.

New business revenue:

Recently they launch several products "Shezan Sarsoon ka Saag", "Sweet Corn", "Garden Pees", "Peach Halves", "Ispaghol" and "Fruit Salad".
This product is to entertain a small target market. But it can increase along with time and also the demand is increasing more efficiently in
international market as well. The proportion of new business is contributing 5-7% in total sales. It may increase in future. They also doing business
under the name of "Shezan Bakers and Confectionary". This business is growing rapidly now they have 25+ outlets of Shezan Bakery.

Renewal and existing business:

Retention rate for Shezan as over all brand is much higher. Because they want to retain their market share and revenue. They were doing well in
past year 2000-2010, due to some religious allegations on shezan they lost their most market share. They continuously trying retention strategies to
retain their customers and market share as well. Now 2014 to onwards they are succeeding and increasing their market share rapidly with the
growth rate of 14 to 15% annually.

Customer groups by industries:

Demographically if we categorize the customers on the bases of percentages, then we get to know that the kids aging up to 14 years constitute the
proportion of 36.7%, teens comprising the proportion of 59.1% and adults comprising the proportion of 4.1%.Now if we discuss the customers on
a large scale, then we can also calculate the customers in terms of the countries as well. The list and the amount of products within the countries
are defined below.
 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

High market share Low market share

Stars Question mark

High
growth
 Cash cows Dog

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.

Factors which influence the growth or decline in the industry:

Factors that can influence the product growth or the decline can be analyzed through the “PEST Analysis”
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.

Economic growth rate:

The rate of company economic growth is 5.3%.

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.

Competitor Analysis

Market players/competition

Major Competitor of Shezan is Gourmet Foods. Their head quarter is situated in Lahore. They have 150+ outlets in Punjab. They are
the largest food chain in Pakistan. Gourmet Foods Company is the strong retailer of Pakistan. Gourmet produces and sells all kind of
breads, buns, rusks, cookies, biscuits, cakes, pastries, pizzas, patties, meat rolls, vegetable rolls, sandwiches, nimko and doughnuts
etc. In sweets, (traditional milk based Indian sweet products) they deal in all sorts of traditional products like burfi, chum chum, gulab
jaman, rassgulla, patisa, jalebee, amrati, ladoo and rass malai etc. They also produce Ice Cream and provide packed milk with the
name of Gourmet, under the dairy products. In beverages they are offering cold drinks and water. They are growing with the rate of
25% annually.
 Market Share of Gourmet Foods:

BCG Matrix

High market share Low market share

Stars Question mark

High
growth
 Cash cows Dog

Low
growth

Market share comparison

Product line of Shezan and Gourmet are different from each other but they have some same products as well. Due to these same
products they are competing in the same market. Shezan don’t have overall advantage on Gourmet. Because they have presence in all
over Pakistan and they also have a strong distribution channel but Gourmet is focusing on selling their product through their own
channels including bakery, restaurant etc. Their distribution is not effective as Shezan's distribution. Gourmet is operating their
bakeries only in Punjab and Islamabad. They are restricted to a specific area.

Estimated Market Share

Products Shezan Gourmet Others
Juices 28% 10% 62%
Bakery products 20% 52% 28%
Jam & Katchup 15% 8% 77%
(Average) Total Share 21.33% 23.33 55.33%

These figures are showing that gourmet have larger market share than Shezan.

Competitive advantage of current players

If you look at Gourmet Foods, it is a clear market leader but still Gourmet has many competitors. Shezan is one of the msin
competitor of Gourmet. Gourmet also have well established brand name and image. It is fully equipped with latest technology and
manufacturing plants, but it is only targeting few segments of the market. It is not upgrading itself that is why in the race of capturing
market it is staying behind the market leader. Some of the advantages are discussed below:

 Gourmet is its own supplier.

 Gourmet is leading the costs by cutting the prices in accordance with other industries.
 Gourmet has a strong approach to customers.

SWOT ANALYSIS Of Shezan:

Strengths:

• Conveniently placed factory

• Pure and natural products
• Qualified sales staff
• Strong financial backup
• Good distribution net work
• Effective advertisement campaign

• Weakness:

• Due to high rate of taxes our process are higher

• Tax evaders sell product on much less prices and retailers blackmail for better profitmargins.

Opportunities:

• Expansion of distribution net work

• Diversification of product
• Addition of new varieties
• Modification according to present requirement
Threats:

• Religious Threat
• Discount offered by competitors
• Low quality food products on cheap prices
 • WTO
• Less awareness of health
• Nutritional facts of products with consumer

Statement of overall competitive position

Shezan has a weak positioning in the mind of customers because of many issues like they do not provide their products well and sell
them personal. Due to this product cannot reach to customer as they expected. Their public relations are weak due to less focus on
advertisement. The only positioning in the mind of consumers about this brand is that its juices are good and the company lack with
the technologic advancement so it is perceived to be a backward company.

The juices are of good quality and tastes good especially in summers. Shezan has developed its image in the mind of consumers
regarding its Mango juice only and if one ever thinks of best mango juice in summer Shezan is the only brand that hits the local
consumers mind.
Sales goals revenue

Revenue goals

Increase the sales volume by 10% in the country during the next four months. This can be achieved by focusing on the sales target
objective.

Name Amount (Rupees) Amount in words (Rupees)

Current revenue 7,500,000,000 7.5 billion
Monthly revenue 625,000,000 62.5 crore
Forecasted revenue (10% increased) 8,250,000,000 8.25 billion
Monthly revenue (10% increased) 687,500,000 68.75 crore

Revenue by product type

We will assume it from the market share and growth through BCG matrix analysis for future. Such as, shezan earn high profit from
star products comparatively other quadrants, and however our goal is increase it by 10% in next four months.
 BCG Matrix

High market share Low market share

Stars Question mark

High
growth

Cash cows Dog

Low
growth
Revenue share by major products of Shezan:

Products Revenue Amount Monthly Increase in

Share% revenue Monthly Revenue
by 10%
Juice(All Pure, Twist, and Mango) 43 3,225,000,000 268,750,000 295,625,000
Sauce 9 675,000,000 56,250,000 61,875,000
Vinegar 7 525,000,000 43,750,000 48,125,000
Squash & Syrups 8 600,000,000 50,000,000 55,000,000
Jams and jellies 12 900,000,000 75,000,000 82,500,000
Bakery Items 21 1,575,000,000 131,250,000 144,375,000

Revenue by customer type

Revenue is usually divided into two categories, B2B and B2C. Shezan is totally dealing in B2C category. Because all the
products they manufacture is for their consumer not for any business or any organization. Their 100% of revenue is
generated by B2C sales. Although there are covering vast target market. Their target market is young people with the age
of 12-22, and families (all ages and demography) are included.
Existing clients

Their existing client are individuals (Young generation) and families, with in the country and outside the country.

Clients No. of Share of Revenue by Monthly Increase in

clients revenue clients revenue monthly
revenue by 10%
Domestic 98,101,000 67% 5,025,000,000 418,750,000 460,625,000
International 47,894,000 33% 2,475,000,000 206,250,000 226,875,000
Total 145,995,000 100% 7,500,000,000 625,000,000 687,500,000

New business

There is a big opportunity for Shezan they can avail this opportunity by introducing several products.

Shezan Cola

Although there is a huge competition in the beverage industry. Their main competitor Gourmet is also in this business. That’s why
they have to introduce cold drink under the name of Shezan to compete with their main competitor.
Shezan Water

Everyone knows that clean and drinkable water is decreasing day by day. People are getting more health conscious. They want
filtered and clean water to drink and most people trust on brands like Nestle and Gourmet. Their main competitor Gourmet have high
growth rate for this product. They can easily sell their product through their bakery outlets as gourmet is selling. This product can
generate handsome amount of revenue for Shezan.

Shezan Milk

There is opportunity for Shezan. Shezan can introduce their tetra pack milk. This product is also for their existing target market. Their
competitors are generating revenue from tetra pack milk. Now they are going to increase grip on this product, they are applying
backward integration strategies to get control over its suppliers by developing their own farms for milk.

New Business Expected Expected Expected

share in revenue monthly
revenue % annually revenue
Shezan Cola 4 300,000,000 25,000,000
Shezan Water 3 225,000,000 18,750,000
Shezan Milk Pack 2 150,000,000 12,500,000
Total 9 675,000,000 56,250,000

This table is showing the result that new business of these three products can increase the revenue of the company by 9% annually.
This business will add approximately 675 Million Rupees in revenue (Annually) and 56.26 Million Rupees in revenue (Monthly).
These figures are showing that there is a huge opportunity for Shezan in new business.
Sales Goals

In sales goals we have to increase our sales by 10 % in next 4 months. Firstly the current market share is given below. Than the sales
goals are briefly describe in unit sales by products and number of new customer that we are going to make.

Current Market share

Market Share
Shezan

21.33 Gourmet

55.33 23.33 Others

 Market Share of 21.33% 7,500,000,000
Shezan
Gourmet 23.33% 8,203,234,880
Others 55.33% 19,454,992,960
Overall (industry) 100% 35,158,222,784
Total

These figure are showing the current market share position in the industry. Shezan have 21.33% market share at that time. We will try
to enhance the sales from 7500000000 rupees to 8250000000 rupees, that will increase the market share for Shezan from 21.33% to
25.67%. The up dated overall market share is displayed in the next diagram. Our aim is to get at least 25.67% of the market share by
spending the budget of 8 crore rupees. 25.67% of market share is very necessary to to increase our sales by 10%.

Sales

Shezan
25.58
Gourmet
51.9
23.33 Others

This is market share goal for shezan.

Unit sales by product type

Juices are the main products of Shezan. All juices including All pure, Twist and Mango juice have the 43% share of the total revenue
of Shezan. These juices are generating the sales of around 3.2 billion rupees from their juices. These products have different
packaging sizes as well as their quantity. We are focusing to increase the sales of juices by 10% in upcoming four months. There is
very clear chance to increase their sales by performing several activities. Unit sales of each juice is given below.

Products Size Packing Annual Monthly 10% Increase

Juices (43%) Size Sales Sales Monthly

All Pure 250ml 36 units per 800,000 66,666 76.665

crate crates/packs crates/packs crates/packs
1 Litter 24 units per 290,909 24,242 27.877
ctn crates/packs crates/packs crates/packs
Twist 250 ml 60units per 533,333 44,444 51,110
crate crates/packs crates/packs crates/packs
Mango bottle 300 ml 24 units per 2,187,500 182,291 209,634
crate crates/packs crates/packs crates/packs
500ml 12 units per 1,222,220 101,851 117,128
pack crates/packs crates/packs crates/packs

After juices we calculate the remaining main products unit sales by each product of Shezan.

Products other (57%) Size Packing Size Sales Monthly 10% Increase
Monthly
Jams 400 gram 12 jar per pack 39,352 packs 43,287 packs

1 1itter 6 jar per pack 6,944 packs 7,638 packs

Vinegar 500 ml, 24 bottles per pack 382,812 packs 421,093 packs
1 Litter 12 16,406 packs 18,046 packs
ketchup 200 gram 36 packets per pack 4,218 packs 4,639 packs

400 gram 24 packets per pack 5,357 packs 5,892 packs

1 kg 12 packets per pack 13,392 packs 14,731 packs

5 kg 4 bottle per pack 2,412 packs 2,653 packs

Squash & Syrups I litter 12 bottles per pack 27,777 packs 30,554 packs
Number of new customers

The number of costumer of their brand is 9.8 crore people in Pakistan. We have to increase the number of customer to approximately
12 crore to get 10% additional sales.
 Custmers
14

12

10

Custmers
6

0
Existing New

Overall Business Positioning Plan

New business acquisition strategies

An acquisition is where one company takes control of another by purchasing its assets or the majority of its shares. Shezan is going to
launch or acquire several new businesses. They are targeting the people who live in urban areas, who are more health conscious. They
are monitoring the current demand and supplies of fast moving consumer goods.

"They want to cover all major categories that are covered by their major competitors. Their major new businesses are tetra pack
milkand mineral water and these products will consumed by their existing target market"

This will be a good advantage for Shezan that means they don’t need to do extra struggle for their upcoming products. But they have
to enhance their existing promotional activities.

New business acquisition tactics

People from urban areas are the main target market of Shezan. Which consist of urban or metropolitan cities Lahore, Islamabad
Karachi etc. Now a days it is very difficult to attract your target audience. We will use several tactics to increase our brand reach.

Latest technology

In manufacturing business cost is very important factor. Sometimes cost of the product can decide the future of the product.
Technology is helping to increase the capacity and lowering the cost for the product. In any new business shezan must bring latest
machinery and system for improvement and to survive in intense competition.

School and college campaign

Shezan is already targeting the young people, if they cover school and colleges by sponsoring annual events and other events. This
tactics can enhance the brand awareness in student as well.

Free Sampling

Through free sampling Shezan can introduce their products. If they want to add some new flavors they can introduce their product to
the target audience by free sampling. It makes them their customer. These type of activities can generate the good will for the
company.

Existing business growth strategies

"Existing growth of the business will achieved by re launch of the brand"

They must go with the change of their logo and color scheme. Shezan have the same logo since theyenter in the market in 1964. They
have to re launch their brand because of some basic reasons. Few years back they face a huge religious controversy. Due to these
things they lose their major chunk of market share. Now they are getting better, but they really need some boost in their sales of
existing products.
Existing business growth tactics

New Logo

Shezan have to introduce their new logo for their brand. They must come up with the involvement of youngsters. They can assign this
task to young people or students who make logo and bring creativity through their ideas for the advertisement campaign as well. By
giving reward to the best logo designer they can attract handsome amount of youngsters.

Market penetration

This strategy is used for selling existing products to existing market. By using this strategy the firm wants to sell their product
aggressively and to get more market share as well. In this industry their competitors have the largest market share as compare to
them. Shezan have 21.33%, gourmet have 23.33 and other companies have 55% of the market share. For example shezan have to
focus on their distributors and retailers to push their product to increase their sales. Usuall companies set targets for retailers and
distributors and when the complete their target they get incentive from the company.

Product development

Which involves creating new products in order to get more business from their existing customer. Shezan have to introduce new
flavors and sizes of juices, sauce and other products to entertain their existing customer.

Related/Un related diversification

By using these strategy they have to introduce new related products and unrelated products. For example they launch energy drinks or
new juices. They are doing related diversification. If they start making t shirt and clothes they are doing un related diversification, just
like gourmet. Gourmet is doing un related diversification, they are developing new products by making furniture. They also start their
news channel.

Statement of overall competitive strategy

They are competing in the industry which have intense competition. Companies are using three major competitive strategies. Cost
leadership, differentiation and focus. Shezan have mix range of products. These products are facing competition in the market.

Cost leadership
The product range of juices are facing tough competition because of nestle and other major competitors. Shezan mango juice have
high market share just because of its price. Mango juice is the low cost product of shezan and this product is leading in the market
from a long time.

Differentiation

Shezan is making many products for the sake of differentiation with their competitors. They are making syrups and vinegar and their
competitors are not making these type of product. That’s why they are doing something different to compete in the market.

Focus

This strategy is also used by shezan because they are making several products for a small group of target maket. Shezan Sarsoon ka
saag and Shezan Salad are the dog products of the company. These product have low market share and growth rate.

Pricing strategies

There are several strategies that a firm follow to compete in the market. The best strategy that we suggest for shezan is cost based
pricing strategy.
Cost based pricing strategy

In cost base strategy a firm firstly examine its cost and add a specific percentage of profit that they want to earn minimum. This type
of strategy is very good for FMCG. In this industry usually different brands are using this strategy. Shezan is making these type of
products as well. If they go with other strategies like value based and comparative, these strategies can bring difficulties for shezan.
Cost based pricing strategy will give tough time to competitors. The main purpose of this strategy is to get more market share and
when they get desired market share they can change their pricing strategy as per situation.

Sales activity plan

Milestones

MONTH WEEK ACTIVITY

New logo activity,
Retailers & distributors meeting, sales team
February 1st week of February meeting, Push strategy.
 Schools campaign, door to door activity, Social
3rd week of February Activity,Allocation of targets to retailers and
distributors,

March 1st and 2nd week of March Digital, Social Activity, sales team meeting
Trade show

Last Week of March Free sampling,door to door campaign

April 1st and 2nd week of April Digital advertisement for brand awareness
Trade show

May 1st week of May Price distribution ceremony for the target achievers
sales man, distributors and retailers

ACTIVITY BUDGET
New logo design activity Rs. 1500,000
Retailer and distributors meeting 3500,000×2 = Rs.7,000,000

TV campaign for brand awareness ARY Digital Rs. 8,000,000 (4 Months)

and promotion Geo News Rs.9,000,000 (4 Months)

School, college campaignand Rs.1.25 Crore

Promotional advertisement

Free Sampling Rs.3,500,000

Incentive on target achievement 1.10 Crore

Trade show 500,000

Sales staff hiring Rs.1,000,000

Training of sales personals Rs.500,000

Sales team incentive Rs.8,000,000

Digital advertisement Rs. 2,000,000

Additional sales team for several Rs.7,500,000

activities
Total Rs.72,000,000
Total budget allocated for this sales plan is 8 Crore Rupees but we save 10% of the budget as per instruction and we are spending 7.2
Crore to increase sales by 10% in four month.

TRADE SHOWS

A trade fair (trade show, trade exhibition, or expo) is an exhibition organized so that companies in a specific industry can showcase
and demonstrate their latest products and services, meet with industry partners and customers, study activities of rivals, and examine
recent market trends and opportunities. There are 28 trade fair in Pakistan in 2019.

Shows Time (When) Objectives

Food 14. March 2019 Food Technology Asia is an international exhibition and conference for
Technology food and an annual meeting place for representatives of food business,
Asia Karachi experts and analysts around the region. Key international and regional
suppliers will be displaying their latest products and services. It is
 Pakistan’s longest-running and largest food show where products are
presented with the machines.
Food + 25. April 2019 Food + Technology Pakistan to be held in Lahore is an international
Technology trade show and conference showcasing the latest innovations of the
Pakistan food packaging and processing industry. Professionals from all over the
Lahore world will present a wide range of specialised products to a qualified
audience taking the opportunity to open up new fields of business. The
event is communication and information platform for all businessmen
involved in the food and beverage sector. Visitors attending the
conference can get valuable insight into the industry by attending
technical seminars and demonstrations.
Key sales event

objective Date
Retailer & Main purpose of this event is to gather all main distributors and 1st meet up on 2nd
distributor main retailers. They are the most important source of generating and week of February
meeting pushing the sales. In this event Shezan guide them and gave them and second after 3
direction about their upcoming sales plan. They also tell them their months to
targets and benefits when they achieve their target. Main purpose is appreciate their
to motivate their dealers to increase the sales for shezan. efforts by incentive.
Sales staff In this meeting shezan involve their sales teams of all regions. The 1st week of
meeting purpose of this meeting is to guide and gave direction to sales staff February and last
about the goals of the organization and their importance to achieve week of May.
goals. In this event sales manager also gave targets to each sales
employee. And motivate them by announcement of heavy incentive
 for them if they achieve their targets.
School & The main objective of this campaign is advertise their brand in to This activity take
college youngsters. Through this activity teams will go to schools and place in February,
campaign colleges and conduct games, give free sampling of their products on March, April and
participation in games. May
Free This event is to generate good will for the brand. Good will can lead From March to
sampling to increase their sales as well. In this activity team will go to May
schools, colleges, welfare organizations, trust and public places as
well.
Monthly The purpose of this meeting is to keep an eye on the performance of Last week of
meeting sales teams of different regions. We want everyone is participating February, March,
as per their target. April, and May

Key sales activities

Lahore

 Free sampling of juices in major government and private schools and colleges. 1 million
 Transit branding promotion : Lahore buses 6000 a month 40 buses = 2.4 lac and for 4 months0.96million
 Billboards cost is 2 lack a month 2 sites = 4 lac for 4 months =1.6 million
 1 million for print media.
 Hire sales staff for Lahore campaign.
 Locations for advertisement: local transport company, packages mall, DHA liberty, canal road thoker, fortress , mall road and
jail road.

Islamabad

 Transit branding : Islamabad buses 8000 a month 20 buses = 1.60 lac and for 4 months = 6.40 lac
 Billboards cost is 2 lack a month 2 sites = 4 lac for 4 months =1.6 million
 Hire sales staff for Islamabad campaign.
 Free sampling of juices in major government and private schools and colleges. 0.25 million
 1 million for print media
 Locations: centaurus mall, 7 th avenue junctions , 9 th avenue bridge , F10 , F11.

Karachi

 Transit branding : Karachi buses 4000 a month 60 buses = 2.4 lac and for 4 months= 9.6 lac
 Billboards cost is 3 lack a month 2 sites = 6 lac for 2 months =1.2 million
 Free sampling of juices in major government and private schools and colleges. 1 million
 Hire sales staff for Karachi campaign.
 1 million for print media
Locations : airport road, tariq road, Muhammad ali road, shah Faisal road, sadder, Karachiexpo.

Territory Total Month Month Month Month

1 2 3 4

Lahore 4.5 million 1.25 million 1.25 million 1.25 million 1.25 million

Islamabad 3.5 million 0.85 million 0.85 million 0.85 million 0.85 million

Karachi 4.2 million 1.05 million 1.05 million 1.05 million 1.05 million
 Total 1.2 Crore

Shezan is doing all these activities to enhance their sales in major cities. The main reason for doing activities in metropolitan cities is
that these cities have the largest portion of population. And their main target market is based on the people who live in these cities.

Resourcing and staffing

Staff requirements

Shezan have to hire sales staff for their different campaigns. They need sales staff for free sampling, for colleges and schools. They
also need extra sales people for sales in existing territories.

We can use the breakdown method because in this process this is suitable like as in 2017 the forecasted sale of shehzanwas 8.25
billion and the average sales per salesperson sales was 10 lac then it mean 8250 salesperson will required for this. Breakdown
method= Forecasted sales/ average sales per sales man= required sales person

=8250000000/1000000= 8250 sales people

They currently have 7500+ employees. They have to increase the number of sales people by hiring 750 employee.

They also need extra staff for campaigns

Number of people for each team= 5

Total required teams= 15

Total regions= 3 (Lahore, Karachi and Islamabad)

Teams for each region= 5

Number of total employees required= 75 + 750 =825

Competencies

First of all, there should be professional networking with wholesaler,retailers and distributers because professional networking is a
great way to acquire new business leads. Using the contacts, you make when you meet people can open doors for business
opportunities. It’s also helpful for the problem solving because when we have a good relationship with the customers then we know
directly problems of our products and then we fix the problems. And the second is our convincing power should be an aggressive
sales person because an aggressive sales style requires you to be focused and interested in your potential buyer. Qualities in
aggressive salespeople require they demonstrate a sense of trustworthiness and compassion. Showing respect will garner respect in
return. If your customer feels you are interested in him as a person, he'll be receptive to your message. If, on the other hand, the
customer senses that you are indifferent or lack interest in him, you risk aggravating him. The sales experience may be far more
difficult than it need be.Geographic based Structure will help in improvement of sales force.

Incentives or reward
Company should be giving the reward to the sales persons if they achieve the target and make the new customer for the company. For
this purpose we allocate maximum amount as we can. We know in this sector this incentive for sales people means a lot. They can try
harder to achieve their target.

Grip should be good on knowledge of previous record that is helpful for forecasting

Itprovides the guide line to the company because in which we see our strength and weaknesses.

Other resource requirements

Training

We allocate handsome amount for training of the current sales force and newly hired sales people.

Claiming Credit

Claiming credit is also a well known activity that is done by the sales people. This issue is also address in the training session of
employees.

Align sales training with business strategy, goals, and needs.

Literature We will focus

on ethical issues also and control it.
Stealing

Usually stealing is everywhere in Pakistan. Sales people steal order from other territories to cover their targets. We should address
this issue by providing clear territory and clear limits for each sales people.

Bribery

Help through sales sophisticated automated system

• Compliance Investigation and punishment system.

• Grievance and arbitration system.

• Mediator or counselor system.

• Employ-board system.

Different type of goals and quotas

Goals are based on measure of performance that occur over time.

Input base goals

These goals are very helpful for the company because they relate to the observable selling efforts a sale person must make. In
which we see the number of sales and also the presentation that sales person makes during his time. It’s helpful for the company to
see the performance, and customer relationship management (CRM) will also helpful for that.
Output base goal

These goals are the selling result a representative is expected to achieve for example how much number of orders sale person
receive and the revenue, sales volume and the profit that he made during his sales.

Briefing and communicating

Briefing is an in informational or instructional meeting. It will be occurred when we assign a new policies, objectives, strategies or
assignments of our product like as we set a meeting when we make a strategy for sales. Firstly we divide the target into four months,
and one month into four weeks, and one week target into working days of each week. Area sales manager is covering 6 to 8
distributors and many retailers, and sales mangers of different zones are covering large territories. They all are responsible for the
sales of shezan. We will communicate the plan to sales manager and sales manager to zone manager and zone manager to area sales
manager and area sale manager to his team and distributors and retailers. In the first week of our plan we will conduct a meeting of all
sales head of Shezan. In this meeting we communicate our goals for the next four month and try to motivate them by announcing
huge benefit and incentive for them. We also conduct meeting on the end of every month to check the performance of sales people.

Monitoring

We give the target to our sales person for selling the products and give them the specific time and then we can easily check the sales
value of each sale person. Monitoring should be done by the head of every sales person and these heads are responsible for the
achievement of target. These heads are required to pass the information about performance and target achievement to their ASM,
TSM and ZSM's. Monitoring is also a important and main thing to do. We allocate the budget of 80 lac rupees for the incentive of
sales people. We will follow the several things to monitor sales person's performance:

Number of sales account is dealing by a sales person

Number of interaction of customer on daily basis/weekly basis

Amount of sales is generated by the each sales person

How much they achieve the target of sales.

Feedback

Pipeline analysis is the best for checking the performance because it shows how well a sales person is maintaining a stream of
customers at different stages in the sales process. There are many more mechanism to check the progress of sales people.
We do also use the comment card for our feedback in which user of our product will comment and tell us about our weaknesses and
strengths.

Customer Satisfaction Ratings

Satisfied customers are returning customers. They suggests having sales reps conduct a quick survey of customers. Ask about
satisfaction with previously purchased product or service. Ask if they are interested in learning about your new offers. Ask if they
would recommend your company’s products or services. This data is easy to collect and analyze, and it forces the sales team to focus
on the customer relationship. This could help the company to assess the progress of their training and development of employees
skills.

The sales cycle

Track how long it takes an individual rep to resolve a single deal. They advises that this time frame can serve as an indicator of the
market and consumer demand. If there is an improvement in the sales cycle this could be an indicator of increased demand or latent
demand. This is also a good mechanism for assessing the progress.
Refference:

https://www.slideshare.net/SyedZamuradSherazi/gourmet-company-presentation

https://www.scribd.com/doc/63107917/Shezan-vs-Gourmet

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/
https://www.yesware.com/blog/5-metrics-other-than-sales-to-measure-your-sales-teams-progress/