FPCCI BEST EXPORT BRAND AWARD

Best export brand award given to the business person on the bases of Year of introduction of bran Brand description Brand scope Market target(national or international) Foreign collaboration Total export of this brand

FPCCI AWARD FOR LAST FIVE YEAR 2009-2013

Category Brand / company name and detail Export type/ volume

Best

export 1 MEHRAN SPICE & FOOD INDUSTRIES EXPORT OF SPICES & SPICE MIXES PLOT NO. 14 & 15, SECTOR -24 KORANGI INDUSTRIAL AREA KARACHI TEL: 021-35076841-50 FAX: 021-35034455 EML: info@mehrangroup.com 3,010,000,000 3 BILLION

award (2012-2013 2009-2010)

Best Brand

Export HAJI MUHAMMAD YOUNUS CHAIRMAN SUPER SUPER POWER (MOTORCYCLES, N.

POWER

J. (MOTORCYCLES, J. AUTO

Award(20112012)

AUTO INDUSTRIES (PRIVATE) LIMITED N.

AUTO RICKSHAWS & SPARE PARTS) PLOT INDUSTRIES # F120, HUB RIVER ROAD S.I.T.E. KARACHI TEL: 021-32564813-16 FAX: 021-32579843 EML:pervez.ismail@superpower.com.pk (PRIVATE) LIMITED AUTO &

RICKSHAWS SPARE PARTS)

Brand of the year

BEST EXPORTER TROPHY(2007-2008)

Shan foods SPICE & FOOD

28000000000
157,733 metric ton

M.M Rice Mills (Pvt) Ltd.

1-MEHRAN FOODS
OVERVIEW OF THE SPICE INDUSTRY OF PAKISTAN Food industry around the globe comprises a niche within itself, referred to as spices. According to the American Spice Trade Association, today spices have become known as any dried plant product used primarily for seasoning purposes. This all-inclusive definition seems to cover a wide range of plants like herbs, spice seeds and even dehydrated vegetables and spice blends. Putting spices in a Pakistani perspective, they also comprise the authentic recipe mixes used in traditional cuisine. The Pakistani spice industry can be divided into branded and unbranded industry. History Mehran Spice & Food Industries started its journey in 1975 and within a few years of its inception, the company grew to become one of the leading spice & food industries globally. As time passed, the product range at Mehran increased from spices by adding ready mix recipes, rice, pickles, chutneys and sweet items.Mehran is a world leader in quality rice, equipped with the most advanced rice plant from Germany. Mehran Spice & Food Industries is an ISO 9001 & HACCP certified leader in the quality food business. Our mission is to be a consumer oriented company with a keen insight of food products ensuring quality, consistency and an authentic taste, backed up with state of the art technology to obtain optimum results. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Mehran Spices & Food Industries.Mehran Spice and Food Industries have been honored with "The Best Export Performance Award" from FPCCI every year since 1984, besides other national and international awards. Mehran has also been awarded the "The Best Export Brand of the Year Award" from FPCCI for the year 2009-2010 & 2012-2013. Over the years, Mehran's production facilities have been set up locally and globally. Chronologically: 1975,Mehran Spice & Food IndustriesS.I.T.E Karachi-Pakistan 1988,Pure Food Ltd.Jebel Ali Free Zone-Dubai 2002,Thar Roller Flour Mill Naukot,Tharparkar District, Sindh-Pakistan 2003,Mehran Spice & Food IndustriesKorangi Industrial Area-Karachi-Pakistan

2007,Gul Mohammed Spice FactoryJeddah-Kingdom of Saudi ArabiaKeeping in view the global success of Mehran, the company aims to establish itself in Pakistan as well. The spice market in Pakistan is ever expanding and penetration into such a huge market is an arduous task. Nevertheless, Mehran was up to the challenge and established effective distribution networks

successfully all over Pakistan. Today by the Almighty's grace & support from our valuable customers, Mehran enjoys a leading position in the market place. "The world knows Mehran, now it's your turn."

Vision To become the best food products company locally & globally, that has and will continue to provide quality food products to its valuable consume. Mission To promote & maintain Mehran Spice & Food Industries as a quality food products company, that is welcomed into the hearts & minds of kitchens everywhere, locally and globally. Product profile

Pricing Policy
It is seen that on a general note, Mehran Foods offerings are based on parity pricing and are similar to those of its rival National Foods. According to sources, this similar pricing is not due to any price war

that exists between both companies but is because the raw materials of both are similar in nature for many offerings. If the cost of raw materials increases, both have to increase their prices and again their prices show similar trend after increase.

Promotion
The estimated marketing budget for Mehran is Rs.100 million for all their ATL and BTL activities in the year 2009. The company does most of its marketing on seasonal basis especially before and during Ramadan and near Eid. The breakdown for the budgeting is 80% for ATL activities and 20% for BTL activities. In the recent times Mehran has put more emphasis on its export and only comes up with new marketing campaign for new products. Distribution At Mehran Foods, special care is placed upon meeting market and customer demands in a fitting and timely manner. It is therefore, ensured by the Supply Chain team that goods or shipments reach their destinations well in time to match market trends and customer demands.

SEGMENTS All segments are very well addressed by Mehran foods. The diagram tells other than the export segment all other segments are handled through the channel of wholesalers and retailers. Mehran foods is dependent on distributor for all the segments except exports which suggest the importance of distributors for the company .

Market Segment

Mehran Products

Recipe Mix Straight Spices Rice Desserts

Biryani Masala, karhai Gosht Masala etc Lal Mirchi, Haldi Powder, etc Banspati seela,kernal Badam,firni,sheer khurma, etc

Pickles & Chutnies Institution Export

Carrot,mango,green chilli and e.t.c All The Products of Mehran All the Products of Mehran

MAJOR INDUSTRY PLAYERS Major players of packed spices in the industry are: Mehran Foods National foods

Other players in the industry are: Chefs Pride shan Foods Ahmed Foods Habib Foods Zaiqa Foods Kitchen Secrets

Where All across Pakistan / abroad (for export) What Needs Nutritional and pleasure requirements. Tastes of food Whose Needs All segments of consumers. Added Value Recipe of different dishes Widely available almost everywhere. Adapting and implementing latest technologies to offer a variety of food products while maintaining quality and safety standards at all times.

DRIVING FORCES The spice industry of Pakistan is a very difficult industry to compete in. The two main reasons of this difficulty are low price competition and involvement of many unbranded suppliers. Brands, whether branded by a food company, retailers brand or unbranded and open commodity merchants including indirect competitors in the business of providing ready to cook, ready to eat, canned/ processed food directly and indirectly compete against one another. Because the price sensitive buyers prefer to buy unbranded spices as they provide a local touch, it becomes difficult for major players of the industry who deal in branded spices, to attract more buyers. A major factor that creates competition in this industry is brand loyalty because certain taste attitudes can only be satisfied with certain brands. Apart from this, some of the major driving forces in the Pakistani spice industry are changes in societal concerns, lifestyles and attitudes, product innovation and changes in who buys the product and how they use it. KEY SUCCESS FACTORS An organizations key success factors (KSFs) can be related to any of the following six categories: technology, manufacturing, distribution, marketing, skills and organizational capability. Apart from these, there can also be other KSFs for a company. All the aforementioned factors apply to the spice industry and their individual importance can not be denied in making industry players successful over the long term.
GROWTH FUTURE 4 YEARS

The table below shows how Spice market would perform in next 4 years in each of the segment and also helps us in pointing the most attractive sector. This is very important exercising and helps people in identifying the segments they should look for and really aim on.

Market Segment Recipe Mix

2010 42%

2011 44%

2012 50%

2013 56%

rice Pickles & Chutnies Institution Export

48% 8% 39% 38%

51% 9% 44% 44%

53% 11% 49% 49%

55% 13% 53% 57%

Product Strategy: mehran in an entrepreneurial venture and it is following market development strategies, product development strategies and penetration strategies as it is expanding its product line to new customer base in various locations, setting up product lines such as spices, pickles, etc and sustaining its global position mainly through exports. Mehran has great range of vegetable mixes for country like India as the target market highly prefers vegetable. Similarly in Pakistan Mehran has wide range of meat mixes as people are meat lovers and highly prefer meat diet. Mehran is currently present in over 60 countries and is performing to maximum of its potential to become the global leader. Therefore, based on conceptual understanding form the Strategic Marketing Management course, it can be called a transnational. Mehran Foods has the competitive edge of technology and innovation. Company develops new methods and techniques to test its new products and generate trials in the market to measure the market response before they formally launch any product. So we can say that research is an integral part of the company and the new product is brought in keeping in view the customer preferences and needs. The spices mixes at Mehrans production plant are created with the exquisite and genuine flavors having the cultural and traditional touch. Mehran believes in the best as it never compromises on standards of finest quality and engraves the old age recipes into modern packaging keeping the freshness intact. The raw material is an initial and important part of whole product strategy. Mehran strongly holds the belief that excellent quality is majorly dependent on the first-class quality raw material processed with the help of state of the art technology. For this very reason the purchase department at Mehran Foods thoroughly selects the best quality spices from fields, local bazaars and international markets. Raw material is also procured from number of countries such as black pepper is imported from India, Africa, Thailand and various other countries. Mehran Foods pays special attention in obtaining raw material as different spices are imported from the places where those spices are grown best.

SUCCESS STORY OF MEHRAN FOODS IN TERMS OF FIGURES During a time when it was very difficult to get a talented and educated pool to work for a national company, Mehran Foods prided itself in hiring the most talented people from the country. As the competitive environment becomes more competitive with each passing day, hiring and retention of positive people is critical, who contribute to the overall growth of the company, country and the community at large. Mehran Foods continuously emphasizes the need of able human resource development through various Performance Management Systems, Internship Induction Schemes and Employee of the Quarter Achievement Award. In addition to these, there is a Training and Development plan run on a regular basis at Mehran, benefiting the workforce. (Mehran Foods, 2008) Mehrans modern factory covering an estimated area of 100,000 sq. feet is also equipped with latest in house lab facilities, which scrupulously tests and analyses each product right from ingredient stage to finished form. At Mehran, immaculate quality is a passion and buyers satisfaction is the abiding commitment.1 An estimated investment of Rs.100 crores has been done in this facility. Today, this organization has almost 1000 employees who work diligently day in day out to make sure that the companys vision and mission are achieved and it is more successful than ever before. Over the years, success of Mehran can be explained by the awards and certifications it is been the recipient of like Export Performance Award 2003-2004 from KCCI, FPCCI Export Spices Mixes Trophy Winner etc. Currently, Mehran claims to earn annual sales worth Rs.2 billion with an annual growth rate of more than 50%. Internationally, a test market has been established in Dubai, after looking at its ethnic population of 1.4 million. Also, Mehran is the first Pakistani company to formally enter the Indian market and introduce its range in a more competitive market than Pakistans.

M.M Rice Mills (Pvt) Ltd.

Starting as a small rice exporter in 2002, today we are regarded as Pakistan's leading exporter of Pakistani Long Grain White Rice. With the Grace of God, and our hard work, dedication and commitment we have earned the trust of our clients in providing excelling quality services. Our clients are very dear to us, and therefore we go the extra mile, to achieve complete client satisfaction. Our efficient, responsive and professional team work round the clock to ensure that the quality of the orders are up to the mark, and are delivered on time; whether in bulk or in containers. We strictly enforce stringent qualitative and quantitative measures to ensure our commitment to our client is fulfilled. Today, M.M. Commodities and M.M. Rice Mill (PVT) LTD. collectively operate 3 Rice Mills, and Warehouses along with Weigh Bridges (Specifications listed below), where rice is milled, packaged in polypropylene bags and delivered according our client's requirements. Location Milling Capacity 10 M.T./HR Storage Capacity Covered (Metric Tons) Area(SQFT) 13,000 50,000 Weigh Bridge No

Rice Mill Main Port Qasim Road, 1 Western Zone Rice Mill Main Port Qasim Road, Western Zone (Adjacent to 2 Main Port Qasim Gate) Rice Mill Port Qasim, Eastern Zone 3

15 M.T./HR

40,000

145,000

Yes

20 M.T./HR

30,000

120,000

Yes

*M.T. /HR Metric Tons per hour

Our Export Performance Fiscal Year 2009 2010 2011 Quantity Exported in Metric Tons 125,025 276,176 157,733

Our Associations and Affiliations

1. 2. 3. 4. Rice Export Association of Pakistan (REAP) Wheat Traders Association of Pakistan (WTAP) Grain & Feed Trade Association (GAFTA) London Federation of Pakistan Chambers of Commerce Industry (FPCCI)

Our Notable buyers

1. 2. 3. 4. 5. Louis Dreyfus of Geneva ADM Rice INC of USA Ameropa Phonex Commodities of Thailand Olam International of Singapore

6.

Soeximex

Our Export Varieties

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. PAKISTAN WHITE RICE IRRI-6, 5% SILKY POLISED PAKISTAN WHITE RICE IRRI-6, 5% BROKEN DOUBLE POLISHED PAKISTAN WHITE RICE IRRI-6, 15% BROKEN REGULAR PAKISTAN WHITE RICE IRRI-6, 25% BROKEN REGULAR PAKISTAN WHITE RICE IRRI-6, 100% BROKEN SORTEXED PAKISTAN WHITE RICE IRRI-6, 100% BROKEN NON SORTEXED PAKISTAN PARBOILED RICE IRRI-6, 5% BROKEN SILKY POLISHED PAKISTAN PARBOILED RICE IRRI-6, 100% BROKEN SORTEXED PAKISTAN PARBOILED RICE IRRI-6, 15% BROKEN SORTEXED PAKISTAN PARBOILED RICE 5% BROKEN SUPER FINE

Our Achievements RICE EXPORTERS ASSOCIATION OF PAKISTAN (REAP) TROPHY, AWARDED TO M.M. COMMODITIES FOR HIGHEST EXPORT OF NON-BASMATI RICE 2010-2011 BY THE HON. GOVERNOR PUNJAB, SARDAR MUHAMMAD LATIF KHAN KHOSA

RICE EXPORTERS ASSOCIATION OF PAKISTAN (REAP) TROPHY, AWARDED TO M.M. COMMODITIES FOR HIGHEST EXPORT OF NON-BASMATI RICE 2008-2009 BY THE HON. FEDERAL COMMERECE MINISTER MAKHDOOM MUHAMMAD AMIN FAHIM

THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR EXPORTING LONG GRAIN RICE WORTH RS. 5,112,904,000 (5.1 BILLION) ON THE OCCASION OF 31 ST FPCCI EXPORT AWARDS 20062007

BEST LADY EXPORTER TROPHY 2006-2007, AWARDED BY THE FPCCI TO M.M. COMMODITIES EXPORTER OF LONG GRAIN WHITE RICE

THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR EXPORTING LONG GRAIN RICE WORTH RS.4,406,440,000 ON THE OCCASION OF 30TH FPCCI EXPORT AWARDS 2005-2006

THE CEYLON NATIONAL CHAMBER OF INDUSTRIES ACHIEVER OF INDUSTRIAL EXCELLENCE AWARDS 2006, PRESENTED THE GOLD AWARD TO M.M. COMMODITIES PAKISTAN IN THE SAARC COUNTRY NOMINATED CATEGORY

BEST LADY EXPORTER TROPHY 2005-2006, AWARDED BY THE FPCCI TO M.M. COMMODITIES EXPORTER OF RICE THE FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE AND INDUSTRY PRESENTS THE BEST LADY EXPORTER AWARD CERTIFICATE TO M.M. COMMODITIES FOR BEST LADY EXPORTER IN RICE FOR THE YEAR 2004-2005

SHAN FOODS
ORGANIZATIONAL HISTORY Shan Foods came into existence in 1981 when it began operations from a single room. Shan Masala as it was back then, launched full range of spices to cater to local public, due to its popularity. Shan started exporting after a few years due to increased international popularity. But after sometime, the need to reposition the brand was felt. It needed to be repositioned as a food brand rather than a spice brand. Re-imaging the organization became necessary for repositioning of the brand; it was a job well done and led to continued success of Shan on national and international fronts. Now, Shan Foods is well known as a brand of easy to cook mixes for Pakistani food. The name of Shan Foods has become synonymous with highest quality and exquisite taste. It continues to carry on, the tradition of authentic cuisine to farthest parts of the world. There are six broad categories of varieties Shan deals in including recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts. Today, Shan Foods has presence in 60 countries. The brand is exported to UK, USA, and Middle East and now to Far East regions as well. COMPANY MISSION AND VISION Shan Foods mission explains its success, To continuously develop and produce quality products that meet the customers and markets demands, compatible with applicable regulatory requirements. To be a consumer oriented company with keen insigne of food products ensuring quality panty consistency and authentic taste to operate with state of the art technology to obtain optimum results and retain highest quality standard thrived efficient and motivation human resource and inculcate in them a sense of participation and proved for personal goals and development. (Shan Foods, 2008) Shan Foods vision is to be a dominant global player in food products and socially responsible company that attains its quality standards so that Shan stands for tradition, trust and good taste.or international. Along with these core values, it intends preserving and upholding other values like purity, authenticity and consistency; which it credits for the phenomenal growth it has seen over the past decade. The company intends to grow on the back of cutting edge technology, with the proven best practice of CPI (Continuous Process Improvement), and it realizes that a major portion of its past success and the future drive towards its development and the achievement of its goals will be hinged on the motivation level, the training, and ultimately the efficiency of its human resource. EXTERNAL ANALYSIS

Market Structure Spice Industry of Pakistan The diagram below tells the Market structure of the Spices in Pakistan, spice industry includes:
Salts Exports Plain Spices Recipe Mixes Biryani Mixes National Foods Products Red Chilli Powder Khushbudaar Lehsan Shan Foods Products Zaiqedaar Adrak Khatta Khatai Qasuri Methi Karara Zeera Taiz Laal Mirch Taaza Dhaniya Zaafrani Garam Masala. Teekhi Kaali Mirch Retailer Khaalis Haldee LOOSE Spices Stir Fried Foods Curry Spice Mixes Deep Fried Foods Barbeque Vegetarian Foods Instant Foods Breakfast Nationl salt Shan Salt Loose Salt Loose Shan Institution National

Loose soices

Wholesaler

Distributor

Manufacturer

Key Analysis

1. All segments are very well addressed by Shan foods.

2. The diagram tells other than the export segment all other segments are handled through the channel of wholesalers and retailers.

3. Shan foods is dependent on distributor for all the segments except exports which suggest the importance of distributors for the company .

Market Segment

Shan Products

Recipe Mix Plain Mix Salt Institution Export

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 Recipe Mix Plain Mix Market Salt Institution Export

2006 19% 22% 3% 19% 9%

2007 29% 28% 4% 24% 10%

2008 36% 33% 5% 28% 15%

2009 42% 46% 7% 38% 25%

Share in Volume (Rs.in billion) Market Segment Branded Unbranded 2007 3 8 2008 4.25 10 2009 6 12 2010 8 15

All the segments of the spice industry have shown good growth in past 4 years.

The Recipe mix segment has shown good growth because of changing life styles of people as they prefer easiness in cooking.

Salt segment is also having a good growth despite having less proportion as compared to other segments

The export market showed a phenomenal growth in throughout last four years.

Market Segment Recipe Mix Plain Mix Salt Institution Export

2010 42% 48% 8% 39% 28%

2011 44% 51% 9% 44% 33%

2012 50% 53% 11% 49% 40%

2013 56% 55% 13% 53% 50%

As the food industry is having a tremendous growth there is possibility that new players will come and existing players will also intensify their efforts to meet the demands, The spice consumption is dependent on food consumption and wet know that people consume about 50% of their income on food so his sector will have a good opportunity. Exports segment specially have a great potential and its size can be increased by having more efforts to export spices and meet the international demand

MARKET SEGMENT

Segment Life Cycle Market / Product Segment Intro Growth Maturity Decline

Recipe Mix Plain Mix Salt Institution Export

Shan Foods can easily pin point which segments to attack. The spice sector is expected to have tremendous growth for future years. Two key segments are falling in growth stage which means even now lot of investment can be made to take the upcoming market of these segments.

The Salt and Institutions are yet on its introductory stage, though Shan foods have started catering to these markets but still lot more efforts are required as figure shows this segment is expected to have lot of growth.

Even after so many years the segment like recipe mix spices is at its growth stage because THERE IS NO as such strong substitute for this segment

SHANS PORTFOLIO LIFE CYCLE Shans Portfolio life Cycle Market / Product Segment Intro Growth Maturity Decline

Recipe Mix Plain Mix Salt Institution Export

Shan foods is in growth stage in three segments i.e Recipe Mix, Institution and Exports which suggest the growth possibilities for shan and giving an edge to Shan by earning more share than its competitors.

The industry is in introductory stage in Export segment while as we know shan has international presence and it is in growth phase so shan can further expand its presence and can make good return by focusing on exports. Companies & Competitors Market Share of Branded Spices

Company

Market Share 2006 2007 1.68 1.5 0.63 0.21 2008 2.352 2.5 0.882 0.294 2009 3.3 3.2 1.2348 0.4116 % Growth 40% 40% 15% 5%

Shan National Chefs other

1.2 1.2 0.45 0.15

The table describes the market share possessed by Shan Foods and its competitors. Shan Foods and National Foods are almost occupying the similar share in Volumes as well as in % but the growth of Shan Foods is Showing the steady increase while the National foods is Showing fluctuations in its market growth.

Shan Outlet Coverage and Market Reach

Shan Outlet Coverage

Outlets

Total

Total Outlets Shan Outlets

407 360

3020 2765

30205 23995

147344 22880

180976 50000

Outlet Coverage Outlets Contribution

89% 0.22%

92% 1.67%

80% 16.70%

16% 81.40%

28%

Shan outlets coverage in A, B and C class outlets is excellent, where they really need to work hard are the D class outlet where there outlet coverage is less than 20%. These are basically the rural areas where people do not really know about branded items they just rely on loose spices.

Shan Market Reach

2004 Market Reach

Retail Volume Sales

Shan Foods Industry

3.3 billion 8 billion

Outlet Coverage Shan Benchmark Shan

Market Reach Benchmark

28%

47%

42%

56%

Product/ Marketing Plan Market segmentation and Product positioning objectives

Market Segment Size Growth Products Existing Biryani masala, BBQ, Qorma Recipe Mix Masala etc
2.Capture Market share from branded and un branded industry Tez lal Mirch, Kaali Mirch, Increase usage small towns All varieties in Sachet packing Continental Recipe 1.Include more varieties in portfolio Italian recipe Chinese recipe Fish recipe

Profitability

Objectives

New Product plan

Plain Mix Rs.25 billion industry 40%

etc

10-15%
Shan Namak

and suburbs Increase awareness among people

Salt

ALL Products Institution

Intensify personal selling efforts

Export

All Products

New markets

Product / Marketing Plan

Pricing Product
Recipe Mix Ranges from Rs.30 to 40 Plain Depends on SKUs Like 50 grams red chili powder is available at a price of Rs.20 and150 grams at Rs.115 Pricing charged by competitors depends upon SKUs and it uses Parity Pricing Pricing charged by Shan depends upon SKUs and it uses Parity Pricing

Competitor Bench Mark

Price Positioning

Salt

Iodized salt is priced at Rs.17 (800 grams) and plain salt at Rs.15 (800 grams)

Distribution
Channel Market This
This Year Distributor / Retail Distributor/ Wholesaler Institutional Sales Export 60% 2010

Company
This Year 65% 2010

60%

60%

20%

15%

15%

10%

12% 8%

15% 10%

5%

10%

15%

20%

Action Plan What How

By effectively managing Distributor / Retail distribution network and giving trade incentives Cutting some proportion of Distributor/ Wholesaler wholesaler and diverting that proportion to other channels By making more Institutional Sales efforts in building good clients to generate more Marketing and sales Department 2010 Marketing and sales Department By 2010

Who
Marketing and Sales Department

When
By start of 2010

institutional sales Taping new Export markets & increasing sales in existing countries Marketing and sales Department 2010

IMC Plan

Shan Foods would follow an integrated marketing communication plan, which would include the different set of activities. Each activity would revolve around the products positioning statement.

The estimated marketing budget for Shan is Rs.100 million for all their ATL and BTL activities in the year 2009. The company does most of its marketing on seasonal basis especially before and during Ramadan and near Eid. The breakdown for the budgeting is 80% for ATL activities and 20% for BTL activities. In the recent times Shan has put more emphasis on its export and only comes up with new marketing campaign for new products.

Shan does not advertise as a ritual and can be termed as quite conservative when it comes to using mass media fro promoting itself. It does not believe in advertising rigorously. The advertising is done seasonally only; however it does conduct certain promotional campaigns and activities. Almost all of Shans promotions are addressed towards women. The advertisements of Shans offerings focus entirely in the females of the family. The marketing strategy is very customer oriented i.e. Shan emphasizes on marketing its products keeping in mind its customers thus having a customer centric view. Such a marketing strategy allows it to leverage on the goodwill already in the market.

It has started to reach out to a wider audience keeping in mind the changing lifestyle to nuclear families and convenience seekers. Shan has recently realized that a potential part of the population i.e. the teenagers are the ones that will become tomorrows decision makers. Thus, it aims at informing, reminding and persuading teenagers through innovative campaigns with proper information regarding the superior quality of Shan products. This way, Shan will be their most preferred choice when they become the decision makers in the kitchen.