Shan Foods

Introduction of Shan Foods

Came into existence in 1981
Started exporting after a few years
Repositioned as food brand
Deals in
--recipe mixes, plain spices,
dessert mixes, basmati rice, pickles
and salts
Presence in 60 countries

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.

Shan foods Mission

To continuously develop and produce
quality products that meet the
customers and markets demands,
compatible with applicable regulatory
requirements.

Pakistan Food Industry

Pakistan is the worlds ninth largest market with an
estimated 150 million consumers.

Major Food Exports of Pakistan

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)

Major Industry Players

Shan foods
National foods

Others
Chefs Pride
Mehran foods
Ahmed foods
Habib foods
Zaiqa Foods
Kitchen Secrets

Market share as competitor

Region wise market share

Growth Last 4 years

Market Segment
Recipe Mix
Plain Mix
Salt
Institution
Export

Shan Products
Biryani Masala, karhai Gosht Masala etc
Lal Mirchi, Haldi Powder, etc
Shan Namak
All The Products of Shan
All the Products of Shan

Market Segment

2006

2007

2008

2009

Recipe Mix

19%
22%

29%
28%

36%
33%

42%
46%

Salt

3%

4%

5%

7%

Institution

19%

24%

28%

38%

Export

9%

10%

15%

25%

Plain Mix

Growth Future 4 Years

Market Segment

2010

2011

2012

2013

Recipe Mix

42%
48%

44%
51%

50%
53%

56%
55%

Salt

8%

9%

11%

13%

Institution

39%

44%

49%

53%

Export

28%

33%

40%

50%

Plain Mix

Products of Shan Foods

Delectable Biryani
Vegetables
Authentic Curries
Stir Fries Foods
Lavish Fried Food
Sumptuous BBQ
Yummy Chaat

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

Curry Spice Mixes

Kofta 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

Stir Fried Foods

Kat-a-Kat Spice Mix

Karahi/Fri Gosht Spice Mix
Keema Spice Mix
Liver Spice Mix

Deep Fried Foods

Chappli Kabab Spice Mix
Chicken Broast Spice Mix
Lahori Chargha
Fish Spice Mix
Fried Chops/Steaks Spice Mix
Lahori Fish
Shami Kabab

Barbeque
Bihari Kabab
Seekh Kabab
Tikka Boti
Chicken Tikka
Tandoori Masala
Tikka Seekh Kabab

Shan Pickles
Mango Pickle
Lemon Pickle
Mixed Pickle
Garlic Pickle
Chilli Pickle

Vegetarian Foods
Achar Masala
Daal Masala Spice Mix
Pani Puri
Chana Masala Spice Mix
Pav Bhaji
Vegetables Spice Mix
Aaloo ki Bhujia Spice Mix

Instant Foods
Dahi Bara Mix
Easy Cook Haleem Mix
Pakora Mix
Shahi Haleem Mix
Khichra Mix

Dessert Mixes
Gajar Halwa
Lauki Halwa
Rasmalai Mix
Gulab Jaman
Sheer Khurma Mix
Special Pista Kheer Mix

Break Fast
Hunter Beef Spice Mix
Egg Spice Mix
Paya Spice Mix
Nihari Spice Mix
Haleem Spice Mix

SWOT Analysis
Strengths

Weaknesses
Opportunities
Threats

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 SKUs available
consolidating its presence in various niches and keeping its
customers loyal to the brand.

Weaknesses
Shan 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.

Opportunities
Shan 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.

Threats
The 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 Shans market share
due to heavy advertisement while keeping the
product quality close to that of Shan.

What Shan foods has

achieved and future targets
Quality control since 1981
Quality assurance system since 2000
Food safety management system since of
2007
Total quality management target if 2010
Third party lab certification target of 2012
ISO 22000, the ISO version of HACCP
(Hazard Analysis And Critical Control Point)

Strategic & Marketing Analysis

Demographic Factors:
-- Females 18+
-- Middle lower class and above
Geographic 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

Analysis of the product

portfolio
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

Distribution plans
Presence in 60 countries
Focus on International Modern trade and
Local Modern Trade
Area wise policy of distribution
500 + distributors in pakistan alone
Focusing on retail, wholesale, hypermarkets
and international chains.

Success story in terms of figures

modern factory covering an estimated area
of 100,000 sq. feet, equipped with lates in
house lab facilities
estimated investment of Rs.100 crores
almost 1000 employees working diligently
Recipient of many national and
international awards
More than 50% growth rate with sales of
Rs. 2 Billion

Strategies
Product Strategy
-- Market Development Strategy
Product Line to new customers
-- Product Development Strategy
Product Lines (Spices, Pickles, etc)
Vegetable mixes for country like India
Meat Mixes for Pakistan
-- Penetration Strategies
Cater the Untapped markets
Genuine flavors in spice mixes
Niches like Diet conscious people

Conclusion
Shan 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.