DUBAESHAM

Organic Spices

Managerial Policy by Mr. Kamil Shahbazkar

Term Report

AKRAMA TAUQEER MALIK

07597

Executive Summary:
“Pakistanis love spices and their healths too. The loose
spices are a big turn-off for the health and quality
conscious people of Pakistan. DUBAESHAM strives to
deliver the right product to the right consumer with the
right channel. The first online brand of Organic Spices in
Pakistan. We have reinvented the business model to
deliver the finest quality of spices to the finest people”
History

Spices and condiments have been of great importance for

the human beings. They have been used as medicines, food ingredients and
elements in religious ceremonies. Spices have been wide spread in Asia
and South America for ages. After the invention of dead voyage, spices
started to be traded through almost all parts of the worlds and have always
been important as trade goods.Spices can be one of the most significant
human discoveries. Not only it exalted the culinary sense of the human
race, it developed medicines and trade too. Dried plants all around the
world were treated as some sort of spice. Today there are millions of types
of spices world over. There has always been demand for spice all over
Indian sub continent, China and all around the world. Its uses are
endlessSpices were one of the major commodity traded between 800AD
and 1200AD globally and were bought by Arabian and other traders
visiting Indian and at those days Indian sub continent was one of the only
place growing spices which is now been grown by many countries of the
world. Spices were of great significance for British during their rule over
Indian sub continent and were exported to Britain and other parts of the
world.
Famous travellers like Marco Polo have described spices with
great enthusiasm. China, Europe, Mesopotamia, Egypt and Arabs. All
famous civilisations have had a role in discoveries and promotion of
spices. With the advent of the modern world, use of spices has been an
integral part of modern cuisines with chefs all over the world trying to
create new tastes with the great old spices.
Indian peninsula has always been home to a variety of
spices. Every part off the sun-continent boasts speciality spices. Indian and
Pakistani cuisines have always demanded a variety of flavours through
different spices.

Spice Commerce in Pakistan

Pakistan's spice category has enormous growth potential, but needs to
overcome various barriers to realise its promise.You need not have spent a
significant amount of time in a kitchen to know that the right blend of
spices is crucial to Pakistani cooking.
In fact, no dish, not even the humble daal, is complete without at least
featuring the basic triumvirate of coriander, red chilli and turmeric. This
dependence on spices to create the perfect karahi, nihari or
basic saalan has many implications, not least of which is the fact that
Pakistani cooking can be very intimidating for the uninitiated.
So, enter the spice masters; National Foods (established in 1970) and Shan
Foods (established in 1981), companies which have been making cooking
simpler by providing boxed recipe mixes that take away the confusion and
guesswork and facilitate both experienced and novice cooks in creating the
perfect dish every time. The variety of recipe mixes available from both
companies is enormous, ranging from biryanis, karahis, qormas and
barbecue marinades to recent features such as mixes for Arabian and
Chinese dishes. It’s very safe to say that National and Shan have
revolutionised the way Pakistanis – at home and abroad – cook their
meals.
According to Faisal Mubin Ganatra, COO, Shan Foods, the volume size of
the overall spices category is 60,000 tonnes, of which 25,000 tonnes is
branded. Although it is hard to translate this into rupee terms as prices
fluctuate a great deal, figures from SMEDA (Small and Medium
Enterprise) in 2010 suggest the value size to be about Rs 25 billion.
However, Adnan Malik, Chief Commercial Officer, National Foods,
believes the value size to range between Rs 35 and 40 billion.
The Data on Market Shares

Main players:
• National Foods(40%)
• Shan Foods(40%)
• Mehran Foods(8%)
• 5-6 smaller players
Types of Spices used:

Original Spices

• Red chillies
• Coriander
• Turmeric
• Cumin
•
Growing by 10% annually

Recipe Mixes

Such as:
• Nihari
• Biryani
• Chicken Tikka
•
Growing by 25% per annum
Facts about Pakistani Spice Industry
Let’s discuss a few things about the Pakistani Spice industry

• Plain vs Recipe Mix:

In the overall category (branded and unbranded spices), there are two
main divisions: plain spices such as red chillies, coriander, turmeric
and cumin, which account for 75 to 80%, and recipe mixes such
as qorma, biryani or chicken tikka masala, which make up the
remaining 20 to 25%.

• The Key Players:

Despite the fact that plain spices account for the lion’s share of the
category, it is the recipe mixes that rake in the revenues. Shan Foods,
which has a strong reputation in both local and international markets, has
an eight percent market share in plain spices and a 41% market share in
recipe mixes. National Foods, which enjoys a better standing in Pakistan
(although it does export to international markets), is the market leader with
a 10 to 12% share in plain spices and a 49% share in recipe mixes. The
only other player worthy of mention as an important (albeit smaller)
contender in the spice category is Mehran Foods.
Established in 1975, Mehran Spice and Food Industries operated solely in
the Middle East market, especially Saudi Arabia, until 2011 when the
company decided to enter the local market. Since then it has managed to
gain shelf space as well as recall with consumers (not an easy feat
considering the competition). According to Sajjad Qaisar, Head of
Marketing and Sales, Mehran now has an eight to nine percent market
share in recipe mixes, although Ganatra puts Mehran’s market share
significantly lower at 1.5 to two percent.
Other players include Chef’s Pride and Laziza, both of which are only
found sporadically on supermarket shelves in major cities. Another
company worth mentioning is Habib Oil Mills (HOM) which launched a
range of MSG-free recipe mixes in 2010 and last year added a range of
plain spices to their product line-up. Although HOM has not yet made any
waves in this category, it could become an important player in the future
considering the company’s reputation and the size of its distribution
network. There are also plenty of smaller regional players.

• Pakistan is world’s 9th largest food market.

• Almost 50% expenditure is on food related materials.

• Almost 7000 spice units in Pakistan.

• Tremendous growth in Spice sector. 15 % as compared to 2016.

• Almost $76m imports.

• Distribution and production efficiency determines the profit margins.

Analytical Data
PESTEL
Here is the PESTEL Analysis for the Pakistani Industry:

• Political:
1. Less significance given to spice crops
2. More concerned about development of crops like wheat, rice
3. Government not able to implement policies because of too little
attention and hence there are no check and balances on the loose
spices market

• Economic:
1. Pakistan economy growing at a steady rate so middle class growing
rapidly
2. Uneducated suppliers of raw material create quality and preservation
issues in loose spices

• Social:
3. Many cook according to their own taste, don’t prefer ready made
recipe mixes
4. Consumers not brand loyal when it comes to plain spices, purchase
from any brand or any loose spice stores
5. Consumers more brand loyal when it comes to recipe mixes so spice
brands focus marketing efforts on recipe mixes

• Technological:
6. Machine set up relatively cheap
7. Need newer technology for packing and sealing products to prevent
counterfeiting
• Environmental and legal:
• People in the Central and Northern parts of the country prefer less spicy
food
• People in the Southern part of the country prefer more spicy food
• No hygiene standards
• No check on the spices sold by loose spices retailers
• Counterfeit spices sold in some areas

SWOT:
• Strengths:
1. Strong Distributions
2. USP
3. Availability

• Weaknesses:
1. Spice is a commodity
2. Undeveloped sector

• Opportunity:
1. Blue Ocean.
2. Trend of Organic
3. New Market

• Threat:
1. Well established competitors
2. Unaware consumers
Competitive Analysis:
Following is our competitive analysis:

Pakistani region can be divided into two main parts, South and north.

Main Player in South:

SHAN FOODS has a large share in South Country.

Main Player in North:

NATIONAL FOODS has a large share in North Country.
 Competitive Profile Matrix (CPM):

Loose SAM Shan National

Spices Foods Foods Foods
Critical Success Weig Ratin Scor Rati Scor Rati Scor Rati Scor
Factors ht g e ng e ng e ng e

Price 0.2 5 1 4 0.8 3 0.6 3 0.6

Competitiveness

Geographical 0.1 3 0.3 3 0.3 4 0.4 5 0.5

Coverage
Hygiene 0.15 2 0.3 5 0.75 4 0.6 4 0.6

Consistency 0.2 2 0.4 5 1 4 0.8 4 0.8

Packaging 0.05 1 0.1 3 0.15 4 0.2 4 0.2

Product Quality 0.15 2 0.3 5 0.75 5 0.75 5 0.75

Customer 0.15 3 0.45 4 0.6 5 0.75 5 0.75

Loyalty
Total 1 2.85 4.35 4.4 4.5
NEED GAP:
• Substandard Spices in loose
• In Branded, a lot of additives.
• The classic taste of Spices in gone
• Hygiene problem in many of the products.
• Branded products don’t have an emotional bond.
• High trend of Organic food Ingredients.
• New generation is more focused on health.
• Organic Spices are either rare or fake in the market.

Bridging the Gap:

• Organic Spices straight from the natural source.
• Spices are packed in sealed containers, ensuring proper hygiene.
• Protection from Germs and Bacteria
• Single source, that ensures there’s no variation in taste.
• Through Extensive marketing, Dubaesham will work towards creating
an emotional bond with Spices.
• This will ensure higher brand loyalty
Introducing, for the first time in Pakistan!

DUBAESHAM
Organic Spices
DUBAESHAM
Organic Spices

• Mission:
“To achieve our vision by incorporating the highest
quality standard and an efficient distribution
channel without transferring the burden of costs on
consumers.”

• Vision:
“To deliver the best quality of organic spices!”
Sample Packaging:
What do we sell?
Highest quality of plain organic spices like:
• Turmeric
• Red chilli
• Dry Coriander
• Cumin seeds
• Nutmeg
• Cardamom
• Basil leaves

How do we sell it?

• Spices are bought from our select farmers across Pakistan.
• The imported spices are checked for quality and freshness.
• Our great distribution system helps us reach out to the the best people
through the best channels in record less time.
• The spices are then packaged and transferred to our inventory store.
• Then they are shifted to stores or to your house.

SKUs:
• 100mg
• 250mg
Target Market:
• SEC A, B1.
• Metropolitans of Pakistan via stores.
• Across Pakistan via online shopping.
• Males and Females.
• Aged 25-45
Reinventing the business model:
We have focused on the supply chain to reinvent the business model:

Old Supply chain:

This is the general supply chain in the descending:
1. Farmer
2. Processor
3. Wholesaler
4. Retailer
5. Local Grocery stores
6. Consumer

We have worked to cover the gap between the consumer and the producer
to ensure quality and freshness:

New Supply Chain:

This the new Supply chain in the descending order:
1. Farmer
2. DUBAESHAM
3. Online and select stores
4. End consumers
Marketing:
Since the organic spices are a relatively new concept and the market is not
yet ready for it.
We will have to work on to factors;

1. Awareness of Brand Category

2. Awareness of Brand

We will use the following mediums to reach this goal:

1. And integrated Marketing communication with TV ads will be our

preference in a few years.
2. Omni Channel Brand Management.
3. Digital Marketing
4. Product activation
5. Brand endorsement via chefs and health experts.
6. Food competitions.
7. Food galas.
8. Blogging.
9. Brand ambassadors
10. Digital infomercials
KEY SUCCESS Factors:

Dubaesham can be a success with the right moves. Here are a few Factors
that we are focusing on:

1. Select stores will be able to gain extra margins by the sale of

Dubaesham.
2. Online sale.
3. Only branded in the Organic Online Industry.
4. Efficient marketing strategy
5. Efficient Supply Chain.
KEY FINANCIALS:
KEY FINANCIALS
Administrative Costs
THANK YOU.
DUBAESHAM wishes you a spicy future
ahead!