Shama company

Preface
This assignment is on Marketing Mix of Shama Associated Industries Limited
and focused on its Marketing strategies.
We have tried our best to make this assignment as much reliable and valid as
possible. This assignment is conclusion of great effort.
We have worked hard with devotion an order to present a high caliber assignment.

Many of our friends helped us in collecting information also in preparation of

assignment. Our best teacher Sir. Abdul Haseeb, who is having honor of
specialization in marketing and Consumer Behaviour, provided us very precious
knowledge about market research and marketing strategies.

We hope that this is a high caliber authentic work. We also hope that this is a
simple, updated and purely focused on marketing strategies of Shama Associated
Industries Limited. We have tried our best to fulfill all ethical requirements an
order to present an unbiased assignment.

We are extremely thankful of all our friends and officials of Associated Industries
Limited who provide us very sourceful information related to their marketing
strategies. Particularly Mr. Bashir (sales and marketing manager). He made us able
of doing such a high level work in a very short time.

We hope that every one can get benefit of the report specially organizations who
are in search of customer satisfaction.
We welcome the suggestions for the improvement of the assignment. Thanks to all
the readers.

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Table of Contents

1 Topics………………………………………………………………... Page#

2 Introduction…………………………………………………………. 03

3 Product Mix…………………………………………………………. 04

4 Branding Decision…………………………………………………... 05

5 Price Quality Decision……………………………………………… 05

6 Pricing………………………………………………………………... 05

7 Consumer Distribution Channel…………………………………… 06

8 Marketing Strategy…………………………………………………. 08

9 General Publicity……………………………………………………. 08

10 Findings………………………………………………………………. 10

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INTRODUCTION

Associated Industries was established in 1961 in government sector. It was very

profitable but due to privatization process it was also privatized in 1992.
It was sold to Shaikh Amjad Rashid on 16 Carore.
Shaikh Amjad is the Chairman of (IMGC) International Multi Group of Companies. In
which 21 companies are working on one combine forum. Also he is the Chairman of All
Pakistan Ghee Manufacturer Association.
Associated Industries Limited is situated in Industrial Area Aman Ghar Nowshera. It is
also famous for Shama Associated Industries limited.It is because of its well known
brands Shama Ghee and Shama Cooking Oil.
Its major productions are ghee, oil and soap. It offers different varieties in these products.

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 Product-Mix Width and Product-line Length for Associated

Industries Limited Products.

Shama Ghee Cooking Oil Shama Soap

1. Pouches 1. 1 litter • Carbon Soap
• ¼ kg 2. 2 litter • Silicate Soap
• ½ kg 3. 4 ½ litter • Powder Soap
• 1 kg • Guarder Soap
2. Small Pack • D. Bar Soap
• 2½
kg
• 5 kg
3. Buckets
• 2 ½ kg
• 5 kg
4. Bulk Pack
• 10 kg
• 16 kg
5. Bulk
Buckets
• 10 kg
• 16 kg

The product mix shows that the main focus or the core prouct is Shama Ghee.
This brand has a lot of varieties. They also offer different varieties in cooking oil
also in soap but they are not with competition with Shama Ghee.the most
convenient item is Pouches, which is the most selling brand in terms of
number of items.

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Branding Decisions:

(1) Brand Sponsor Decision: Manufacturer Brand.

(2) Brand Name Decision: Blanket Family Name.

(3) Branding Strategy Decision: Line Extension.

(4) Brand Repositioning: No Repositioning.

Price Quality Strategies:

Quality/Price
Quality/Price High Medium Low
High Premium Value (High Value) Super Value
Medium Overcharging Medium Value Good Value
Low Rip-Off False Economy Economy Value

They keep the High Value Strategy which means that they offer high quality with
medium price.

Pricing:

(1)Pricing Objectives:
They are market leaders in NWFP. They are enjoying
maximum market shares. Their main strategy is Market Penetration means they
keep affordable prices and keep good quality standards.
(2) Demand:
Their current demand is almost 5000 tones per month which covers
the local and out country demand. The demand from Afghanistan is much higher
than predictions but they are bond to Pakistan Export Promotion Bureau policy.
(3) Total Cost:
This aspect is not mentioned. It is kept secret due to some reasons
but they charge on bases of market demand so they normally get very high profit
than their cost.
(4) Competitor Prices, Cost, and offerings:

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They are market leaders so they are

enjoying independent policies in NWFP. They are not worried about competitors.
(5) Pricing Method:
They look to market trends, for example the price of 16kg bulk
pack was Rs.1484 before the political crises of Jan 27. But soon after the sad
demise of Benazir Bhotu the prices rises to Rs.1585 and they are expected to raise
more in coming few days.
F.C + V.C + Market Trend and Situation

(6) Final Price:

They usually sell it to their distributors and these distributors
further sell it to retailers and these retailers.

Consumer Distribution Channel:

Distribution Channel is the most important task for every company. They create
the image of your products also they present your product to the final consumer.
Every company wants to establish an efficient and effective distribution channel.
Following is the distribution channel of Associate Industries Limited.

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Manufacturer

Distributor

Whole Seller

Retailer

Consumer

They sell their product to Distributor and give target to him. He is responsible for
achieving the target. They give incentives on achievement of the target. The
Distributors further sell the product to Whole Sellers. Then the Whole Sellers
further sell it to Retailers. These retailers then sell this product to consumers.

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Marketing Strategy:
Ever company or organization has some vision through which the organization
sees itself in some future time. This can be a desire of each organization. This is
the future plan and it should be very clear and SMART (Specific, Measurable,
Achievable, Realistic and Time Framed). The more it is SMART the more it is
better. This is made by top management, who always fight in the market for the
survival of the organization. They made different strategies to achieve their vision.
Marketing is the most important one among these strategies. In to day’s
competitive market every organization needs a good marketing strategy. Marketers
use different tools for marketing.

Following are Marketing Tools which Associated Industries Limited uses:

(1) ATL (above the line):

They use different advertising and promotions on T.V
and Cable.
(2) BTL (below the line):
They uses Posters, Boarding, Banners, Stringers,
Hangers, Voblers, Wall Clocks, Key Chains, Diaries, Calendars, Pump flits,
Broshers, and Stickers.

Advertising Objectives:
• Sale up to Dec, 2007 was 1500 ----- 2000 tones/month (only
exports) and was 3000 ------ 3500 tones/month in local
market. While up to the end Dec, 2008 they want to increase
the sale from
3500 (local market sale) to 5000 tones/month. While 2500
tones/month export to Afghanistan but it will depend upon the
government export policy.
• To make Shama as a National Brand in all over the Pakistan.
To popularize and aware the public through effective and
efficient marketing strategy.

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Budgeting:

Associated Industries spare 2 ½ karore annually for Shama Brand

promotion. 1 karore/annum can also be approved from head office Karachi if they
need for promotion purposes only.

1) For Distributors:
2 rupees/kg is given to the distributors when they
achieve the target. These are the incentives only if any distributor
fails to achieve the target then these incentives are not given.
They also have some trade schemes for example 16 kg bulk pack is
given to the distributor on 1500 if its market price is 1610. They offer
different types of trade schemes time to time to keep the distributor
motivated.

2) For Consumers:
They also offer different types of schemes for
attracting consumers.
Product + add product
For example Shama Ghee + Jame Shereen
Shama Ghee + Pepsi
Shama Ghee + Tapal Tea etc.

General publicity:

They use two types of tools for general publicity.

(1) Items: Different types of items are used for general
publicity for example writing pad, key chain, walk clock,
wrest watch, cups, pens, wallets etc.
(2) Activities:
• Sponsorship:
They sponsor different types of events for example all
Pakistan swimming competition Peshawar, cricket and
foot ball tournament D.I Khan, hockey tournament in
Kohat, all Pakistan gulf competition Nowshera etc.
• Kiost Activities:
Stalls are hired in bazaars like Itwar Bazar in HayatAbad.
Wall clock, cooking spoons, cup etc are given on purchase
of small packs of Shama Ghee in these stalls.

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• Special Events Activities:

Special events like free pakowra stall in populated bazaars
during Ramazan. These stalls are publicitized in conjusted
bazars.
• Shama Ghee Display Competition:
In this competition retailers are informed about the
defined time of compettion i.e one month. In which the
retailers keep Shama Bulk Packs in front of his shop. The
RSMs (regional sales managers) visit to these retailers and
give prizes to winner.
• Shama Cooking Competition:
They go to female schools, colledges and universities and
motivate the student to cook different types of dishes.
These students are provided the necessary ingredients for
cooking including Shama Ghee. Then prizes to good
cooker is given.

• Give aways :
When some special personality visits to Associate
Industries he is given Shama Ghee as a gift or other items
as a gift. Similarly when Associated Industries Officials
visit to some special personality they take Shama Ghee as
a gift.

There are many more such kinds of activities which are used for publicity.

Findings:
Associated Industries Limited has a very good image in the NWFP market. They
are market leader in this area also they export their products to Afghanistan. They
are using different types of marketing tools. They are quite successful in achieving
their targets just because efficient and effective marketing strategies.

In spite of all these their promotion on T.V is not very good. There message and
appealing factor is seen weak. So they need to focus on this as soon as possible.
Their vision is also quite impressive if they succeed to achieve their brand will be
a national brand.

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