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.

 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

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 Sale Amount Monthly Increase in

Share% Sale Monthly Sale 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 Sale by clients Monthly Increase in

clients Sale Sale monthly Sale 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.
Refference:

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

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