Report on Fruiticana Foods and Beverage Company

Internship Report on

“FRUITICANA FOODS”

Lahore, Pakistan

“Wazir Muhammad Anjum” 2012-KIUSKD-769

Management Science MBA (Marketing)

Session: 2012-2015

Department of Business Management

Karakoram International University, Skardu Campus

(www.kiu.edu.pk)



Lahore, Pakistan.

This Internship Report is submitted to the Department of Business

Management in partial fulfillment of the requirement for the degree

of Masters in Business Administration (MBA Marketing).

September, 2015

Department of Business Management

Karakoram International University

Skardu Campus



Lahore, Pakistan.

Supervisor

Mr. Ibrahim Hussain

Lecturer, K.I.U Skardu Campus

12th September, 2015

“K.I.U Skardu Campus” Page i

Internship Report 2015

“K.I.U Skardu Campus” Page i


DEDECATION

My humble efforts during the internship

and preparation of this report is dedicated

to my

“Loving Parents”

Without of their endless support and

sincere prayers this was not possible.

“K.I.U Skardu Campus” Page ii


PREFACE

Student life is a period of preparation for the upcoming future. In this

period one is expected to make all around developments of mental,

moral and physical. Life is a struggle and kind of battle. The internship

is to stuff the brain with all sorts of facts and formulation. Internship

program provides a golden opportunity to the students through

which they can expose themselves to the environment of practical

learning in organizations that enables them to develop and

enhance their capabilities and skills and help lot in the practical life

afterwards.

After ceaseless efforts, it is a matter of great satisfaction for me to

finally see my final internship report in my hands. This report is

collection of our observations, study and experience during our

internship period.

“K.I.U Skardu Campus” Page iii


ACKNOWLEDGEMENT

First of all I would like to thanks almighty ALLAH, who’s blessings

helped me to get through this report safely, the one who was

always there when no one was!

Would that I have words to pay tribute to my loving parents and

teachers whose invaluable prays salutary admire and embodying

attitude kept my spirit alive to strive for knowledge and integrity

which enable me to reach milestone.

I would also like to express enormous gratitude to my respectable

teacher and supervisor “Mr. Ibrahim Hussain” for providing the

direction and supervision, all scope of this project and for helping

me in refining my efforts and ideas.

I also acknowledge the help and pleasant gathering of all my

cousins, friends and fellows which really helped me in

accomplishing my report.

(Wazir Muhammad Anjum)

“K.I.U Skardu Campus” Page iv


Contents

DEDECATION ..................................................................................................................................... i

PREFACE ............................................................................................................................................ ii

ACKNOWLEDGEMENT ....................................................................................................................... iii

List of Figure, Chart and Table .......................................................................................................... vii

List of Acronym ................................................................................................................................ vii

Executive Summary ......................................................................................................................... viii

Chapter 01 .........................................................................................................................................1

OVERVIEW OF THE ORGANIZATION ....................................................................................................1

1.1 Brief History ........................................................................................................................................ 1

1.2 Introduction ........................................................................................................................................ 1

1.3 Organization’s Policies ........................................................................................................................ 3

1.4 Major Competitors .............................................................................................................................. 3

Chapter 02 .........................................................................................................................................5

ORGANIZATIONAL STRUCTURE ...........................................................................................................5

2.1 Organization Hierarchy Chart ............................................................................................................. 5

2.2 Number of Employees ........................................................................................................................ 6

2.3 Main Offices ........................................................................................................................................ 6

2.4 Introduction of all Departments ......................................................................................................... 6

2.4.1 Finance Department .................................................................................................................... 6

2.4.2 Human Resource Department ..................................................................................................... 7

2.4.3 Business Development Department ............................................................................................ 7

2.4.4 Procurement Department............................................................................................................ 8

2.4.5 Marketing and Sales Department ................................................................................................ 8

Chapter 03 ....................................................................................................................................... 10

STRUCTURE OF THE MARKETING DEPARTMENT ................................................................................ 10

3.1 Department Hierarchy Chart ............................................................................................................ 10

3.2 No. Of Employees in the Department ............................................................................................... 11

Chapter 04 ....................................................................................................................................... 12

MARKETING OPERATIONS ................................................................................................................ 12

4.1 Customer Demand ............................................................................................................................ 12

“K.I.U Skardu Campus” Page v


4.2 Market Trends ................................................................................................................................... 13

4.3 Competition Movement ................................................................................................................... 13

4.4 Quality Assurance Process ................................................................................................................ 14

Chapter 05 ....................................................................................................................................... 15

FUNCTIONS OF THE MARKETING DEPARTMENT ................................................................................ 15

5.1 Marketing Strategy ........................................................................................................................... 15

5.2 Product strategy ................................................................................................................................ 16

5.3 Pricing Strategy ................................................................................................................................. 16

5.4 Distribution Strategy ......................................................................................................................... 16

5.5 Channel of distribution of Fruiticana Foods...................................................................................... 17

Chapter 06 ....................................................................................................................................... 18

CRITICAL ANALYSIS .......................................................................................................................... 18

Chapter 07 ....................................................................................................................................... 20

INTERNSHIP PROGRAM .................................................................................................................... 20

Chapter 08 ....................................................................................................................................... 21

TRAINING PROGRAM ....................................................................................................................... 21

8.1 Project ............................................................................................................................................... 21

8.1.1 Where do Fruiticana stands today in market against competition? Detailed evaluation of

prices, quality, positioning and also give your valuable suggestions on these points. ...................... 22

8.1.2 What we are doing good and what are area for improvement? ............................................... 25

8.1.3 How can we double increase our sales in next one year time? Give recommendations. ......... 26

Chapter 09 ....................................................................................................................................... 27

CRITICAL ANALYSIS .......................................................................................................................... 27

Chapter 10 ....................................................................................................................................... 29

SWOT ANALYSIS ............................................................................................................................... 29

10.1 Strength........................................................................................................................................... 29

10.2 Weaknesses .................................................................................................................................... 30

10.3 Opportunities .................................................................................................................................. 30

10.4 Threats ............................................................................................................................................ 31

Chapter 11 ....................................................................................................................................... 32

FINDINGS ......................................................................................................................................... 32

Chapter 12 ....................................................................................................................................... 33

“K.I.U Skardu Campus” Page vi


RECOMMENDATIONS ....................................................................................................................... 33

Chapter 13 ....................................................................................................................................... 34

CONCLUSION ................................................................................................................................... 34

References ....................................................................................................................................... 35

“K.I.U Skardu Campus” Page vii


List of Figure, Chart and Table

Figure 1 Introduction .................................................................................................................................... 2

Figure 2 Finance Department ....................................................................................................................... 6

Figure 3 H.R Department .............................................................................................................................. 7

Figure 4 Business Development Dept ........................................................................................................... 7

Figure 5 Procurement Dept .......................................................................................................................... 8

Figure 6 Marketing & Sales Dept .................................................................................................................. 8

Figure 7 No. of Employees .......................................................................................................................... 11

Figure 8 Customer Demand ........................................................................................................................ 12

Figure 9 Market Trend ................................................................................................................................ 13

Figure 10 Competition Movement.............................................................................................................. 13

Figure 11 Strengths ..................................................................................................................................... 29

Figure 12 Weaknesses................................................................................................................................. 30

Figure 13 Opportunities .............................................................................................................................. 30

Figure 14 Threats ........................................................................................................................................ 31

Chart 1 Hierarchy Chart ................................................................................................................................ 5

Chart 2 Marketing Dept Hierarchy .............................................................................................................. 10

Chart 3 Channel of Distribution .................................................................................................................. 17

Table 1 Competitive Analysis ...................................................................................................................... 19

List of Acronym

CEO Chief Executive Officer

R.S.M Regional Sales Manager

A.S.M Area Sales Manager

“K.I.U Skardu Campus” Page viii


Executive Summary

One of the most important aspects of having an internship is to get a clear

picture of how people really work with the fields that we study. Internship is all

about getting some practical knowledge, to complete and sometimes contrast

all of the theoretical comprehension that we have accumulated during our

years of studying. In my experience, an internship can give some very useful

experiences and work as a preparation for future professional life. I got place for

my internship at Fruiticana foods. My internship program was started from 30th

March 2015 and ends on 31st May 2015. In these two months I was given

different tasks. I spent almost one month in Carton pack factory where I

supervise the production of Carton pack, Batch testing, Packing process,

Handling dispatches, Raw material demand process and Stock taking while the

rest of the days I spent in market from where I got information to complete my

task of “Market research on current status and provide strategies for future

growth”.

Fruiticana foods is a food and beverage company and has always been

dedicated to the health and interests of customers and to this end, keeps

introducing delicious and healthy food and beverage products. The products of

Fruiticana foods are Fruiticana juices, Fruiticana sachet pack and Fruiticana

pulp. Fruiticana Foods was established in 2009, having a small manufacturing

unit of pet bottle juices and Head Office in Lahore. The CEO and the owner of

this venture is Syed Montazer Mehdi. Fruiticana is available in Pet bottle (250, 500

and 1000 ml) and in Carton Pack (250 and 200 ml). Fruiticana is available in 10

different flavors. The flavors of Fruiticana juices are Orange, Apple, Red Grapes,

Lychee, Peach, Pineapple, Mango, Lemon, Pomegranate, and Guava. The

major competitors of Fruiticana are Fruitine, Maza, Vivo, Fresher, Shezan,

Country, Tops, Slice, and Fruita Vital. The customer demand for Fruiticana is

good enough. The organization some time fails to fulfill the demand on time

“K.I.U Skardu Campus” Page ix


because of the huge demand and low capacity of production. The trend of

using packaged fruit juices in Pakistan is getting famous day by day, because of

the change in life style, massive migration from rural to urban areas and

population growth etc.

The marketing strategy of Fruiticana Foods was developed to position its

products in the mind of customers by providing high quality products in

reasonable price and by distributing the product on a mass level to maximize its

profit. Fruiticana is offering good products in marginally low price as compare to

the competitors; therefore they are getting fame in market. Fruiticana is far

away from their competitors in promotional activities. They didn’t promote their

products but because of their strong and active sales force they are successful

to grasp the attention of the customers which leads to increase in the sales

volume of the company. Distribution strategy is the key element of every

marketing strategy because it will helps the organization expand its reach and

grow sales. The distribution channel of Fruiticana foods is simple because they

sell their products to the registered distributors and the distributors are

responsible to sell them in market. Company gets free when the products sell to

the distributors.

The market analysis and the sales of last 04 years shows that there is a

continuous increase in sales and demand of the products, which shows that the

products are good and marketing strategy is leading the organization towards

right direction. People are unaware about the brand but still the sale of

company is satisfactory and this is because of the highly motivated sales team

which is working in market to enhance the revenue of the organization. If

Fruiticana foods adapt intensive strategies like market development and market

penetration they can easily capture a huge market share in no time.

“K.I.U Skardu Campus” Page 1


Chapter 01

OVERVIEW OF THE ORGANIZATION

1.1 Brief History

Fruiticana Foods is a private venture. It is a food and beverage company and

has always been dedicated to the health and interests of customers and to this

end, keeps introducing delicious and healthy food and beverage products. The

products of Fruiticana foods are Fruiticana juices, Fruiticana sachet pack and

Fruiticana pulp. Fruiticana Foods was established in 2009, having a small

manufacturing unit of pet bottle juices and Head Office in Lahore. The CEO and

the owner of this venture is Syed Montazer Mehdi. He did his MBA (Marketing) in

1993 and starts his professional life. After spending his 16 golden years in different

organizations at different designations he started his own business and named it

as Fruiticana Foods. Fruiticana Foods organizational culture is built on 5 main

pillars i.e. Innovation, Quality, Service, Trust and Humility. Since last 6 years they

are striving to uphold these organizational values. These values have been

detrimental in the quick and sustainable success of Fruiticana Food’s core brand

“FRUITICANA JUICES”. Fruiticana is available in Pet bottle (250, 500 and 1000 ml)

and in Carton Pack (250 and 200 ml). Fruiticana is a brand which customer

intent to buy, due to its attractive outer packaging and unmatchable taste. The

value for money which this brand carries has helped it gain a vast popularity in a

very short span of time. Today “FRUITICANA” is considered to be a cherished

juice brand wherever it is present in the world. Along with having its presence in

150 cities of Pakistan, it is now available in 10 European countries. (Fruiticana

Foods, 2015)

1.2 Introduction

“FRUITICANA” is a brand name of Fruiticana Foods. Fruiticana starts its journey

with only two flavors in pet bottle and with a small team and nowadays there



are 10 flavors of Fruiticana juice. In the very next year it got a great response

from local market because of the great quality and reasonable price. They

introduced these flavors due to consumer variations not only in taste, rather also

in the lifestyle, the flavors of Fruiticana juices are:

Orange

Apple

Red Grapes

Lychee

Peach

Pineapple

Mango

Lemon

Pomegranate, and

Guava

Figure 1 Introduction

Fruiticana Foods is headed by a team of seasoned professionals from all walks of

business like Finance, Manufacturing, Sales & Marketing, Human Resource and



Product Development. Since its commencement, Fruiticana Foods success has

been associated with product improvement, innovation and consumer

oriented. They have penetrated in the local Juice market and have extended

their arms in the export markets significantly. Company’s priority is to bring the

best and most relevant products to people, whoever they are, whatever their

wants, throughout their lives, therefore Fruiticana is growing day by day and

they are continuously working to maintain its position in the market.

1.3 Organization’s Policies The basic policy of the organization is to provide quality products and do not

compromise on quality of the product. Other policies of Fruiticana Foods are:

Procurement policy

Recruitment and selection policy

Equal opportunity policy

Capability and performance policy

Performance appraisal procedure and policy

Claiming expenses policy

Quality control, and

Dignity at work like Harassment and Bullying policy.

All the employees are strictly following the organization’s policies. The CEO and

Managing Director Sales and Marketing ensure the implementation of the

policies and takes quick action where needed.

1.4 Major Competitors Juice and beverages industry is extremely competitive. The companies have to

compete against local, regional and global manufactures on various factors

including quality, price, variety, availability and distribution. The major

competitors of Fruiticana are:

Fruitine

Maza



Vivo

Fresher

Shezan

Country

Tops

Slice, and

Fruita Vital

Some of these juices are very good in quality and some are famous in market

because of their reasonable price. The distributions of some brands are

awesome and some brands have a range of variety. Fruiticana is a quality

brand having a large variety of flavors in competitive price; its distribution is also

good but still needs to improve its reach to the untapped areas. Competitors

are spending a handsome amount of sales on their promotional activities while

Fruiticana is not doing anything for promotion, neither a single advertisement is

on aired till yet and nor a single advertisement published in any newspaper or

magazine. Just a single poster cannot aware and stimulate people. People are

unaware about the brand but still the sale of company is satisfactory and this is

because of the highly motivated sales team which is working in market to

enhance the revenue of the organization.



Chapter 02

ORGANIZATIONAL STRUCTURE

2.1 Organization Hierarchy Chart Chart 1 Hierarchy Chart

C.E.O

Finance

Manager

H.R

Manager

Business

Dev Manager

Production

Manager

Carton Pack

Production

Manager Pet

Bottle

Director

Procurement

General

Manager Sales

& Marketing

R.S.M R.S.M

A.S.M A.S.M

A.S.M A.S.M

A.S.M

Sales Teams of Different Region

Factory Staff

Office

Assistant

C.E.O



2.2 Number of Employees

There are 60 employees working in Fruiticana Foods other than factory staff. In

both production units there are numbers of employees working on daily wages

that’s why they are not included in Fruiticana Foods permanent employees.

Organization strongly follows the government policies for the betterment of the

employees and workers.

2.3 Main Offices

Fruiticana Foods has two main offices, first one is the head office located at

Multan Road Lahore and the other one is regional office located at G-8 Markaz

Islamabad. There are two production units and two sub offices in both factories.

2.4 Introduction of all Departments

There are five main departments and employees are divided in these five

heads, which are, Finance department, Human resource department, Business

development department, Procurement department and Marketing and Sales

department. Every department works in their premises and takes minor decisions

according to their own jurisdictions. Every head of department is directly

reported to the CEO.

2.4.1 Finance Department

Finance is the back bone of any

organization. Finance Manager handles the

finance department. Apart from basic

record keeping he is responsible to provide

information to assisting the managers to take

strategic decisions, further more he is solely

responsible for all day to day accounting

transactions, financial records, cash receipts and payments, salaries

Figure 2 Finance Department



disbursement, raw material purchases and imports and deals with all the

financial documents during export. He also manages the organizations cash

flow and ensures the availability of funds to meet the daily payments. This

department also works with the managers in preparation of organizational

budget and forecast, and to report about the outcomes throughout the year.

2.4.2 Human Resource Department

Human resource is the king of all resources,

because it utilizes all other resources of the

organization. It is one of the most valuable

resources of every organization. The efficient

human resource department will surely

provide the organization with the capability

and structure to meet with the organization’s

goals and objectives by managing its human

resource. Human resource manager is responsible for selection and recruitment

of right person for the right job at right time. He ensures the timely availability

and also checks their attendance etc. Human resource department also

responsible for the position arrangement, grading and performance appraisal

review at the end of every fiscal year. Office assistant and HR manager at the

end of the month compile all attendances and salary deductions where

needed and forward to finance manager and finance manager disburse the

said amount to their respective accounts.

2.4.3 Business Development Department

Business Development Manager’s key

responsibility is based on research by utilizing

media, study of different business reports;

identifying market trends, market potentiality

Figure 3 H.R Department

Figure 4 Business Development Dept



and new opportunities. He is responsible for making new business relationship

with prospects and also retains the existing customers. Business development

manager prepares policies to develop the business by increasing exports to new

countries. Both production managers are responsible to provide business

development manager details about the production so that he takes orders

from international market.

2.4.4 Procurement Department

Director procurement is responsible for

purchases of raw materials for production

from the right place at right time and on

right price. After purchase the timely

delivery to the concern department is

also his duty. Production managers send

the list of raw materials needed to director procurement and the director

procurement made purchases against the orders. He ensures the best quality

raw material and also keeps in mind the price of raw materials so that they can

control over the cost of the products.

2.4.5 Marketing and Sales Department

Managing director sales and marketing is

doing lots of tasks; he handles all

marketing activities including production,

pricing, promotion and placement. He is

the front face of organization. The

managing director sales and marketing is

responsible to identify the need, want and

demand of the customer and to identify

the market trend and the current market position of the organization. He takes a

Figure 5 Procurement Dept

Figure 6 Marketing & Sales Dept



deep look on the competitors and takes timely decision to compete in the

market. The Managing director sales and marketing communicates with all

members of the organization to find out the best way to achieve organization’s

goals and objectives. He also handles the Research and Development

department and continuously working to bring innovative products in market.

After CEO, Managing Director sales and marketing is the key person in the

organization. He takes timely decisions where needed.

The organization structure of Fruiticana foods is straight and simple. Everyone is

cleared about his jurisdictions, duties and responsibilities. Decision makings are

made in democratic way and top level management appreciate everyone on

providing their ideas during decision making.



Chapter 03

STRUCTURE OF THE MARKETING DEPARTMENT

3.1 Department Hierarchy Chart Chart 2 Marketing Dept Hierarchy



3.2 No. Of Employees in the Department

As we know that marketing and sales

department is the revenue generation

department, so companies give special

emphasis on this department. If marketing

and sales department works correctly than

the organization will surely earn profit and

achieves its goals and objectives. There are

52 employees working under the Managing

Director Sales and Marketing. They are categorized in different heads. The goal

of every head is same, to generate sales and increase the profit of the

organization. There are 02 Regional Manager, 05 Area Manager, 40 Sales

Officers and 05 Sales men. Regional managers are responsible to enhance sales

in their region in coordination with area managers. Regional managers directly

report to the Managing director Sales and Marketing. Every area manager

reports to regional manager while sales officers and sales men are responsible to

report their area managers.

Figure 7 No. of Employees



Chapter 04

MARKETING OPERATIONS

4.1 Customer Demand

The customer demand for Fruiticana is good

enough. The organization some time fails to

fulfill the demand on time because of the

huge demand and low capacity of

production. The response from domestic and

international market is good for Fruiticana. As

Fruiticana is involve in Business to Business

transactions, so the main customers of Fruiticana are the whole sellers and

distributors, but the main focus is on the end consumers. Every organization

develops products for the end users so they research on end users’ taste,

choice, trend, and their purchase behavior. Demand for Fruiticana is high

because they continuously working on consumers’ response and their behavior.

Customer demand for Fruiticana is increasing day by day. The annual sale of

Fruiticana in 2013 was Rs. 598,538,000 which increases in 2014 up to Rs.

910,796,000, which shows a rapid increase of 35% in customers’ demand. CEO

and other staffs are optimistic about 2015 sale as well. CEO said that, “Although

the demand in month of March was not as high as it was in 2014 but the sale of

April and May was too high, so we are optimistic regarding our sale and hope

for the best”.

Figure 8 Customer Demand



4.2 Market Trends

The trend of using packaged fruit juices in Pakistan

is getting famous day by day, because of the

change in life style, massive migration from rural to

urban areas and population growth etc. Before

few year people were used to consume

fresh juices prepared at home but as we

mentioned earlier that because of change in life

style they started to move towards

packaged juice. The other reasons of growing market trend are; opening of new

hotels, restaurants and hospitals, where these juices are marketed successfully,

further more the rapid growth in fruit market is because of the removal of

custom and excise duty on fruit juices which also increased their export. The

export of fruit juices increased from 24.41 tons worth Rs. 15.58 billion in the era of

2009-10 to 50.45 million tons worth Rs. 3.65 billion in the period of 2011-12 and it

continues increasing with every passing day. (Aaj News, 2013)

4.3 Competition Movement

The major competitors of Fruiticana

are Fruitine, Maza, Vivo, Fresher,

Shezan, Country, Tops, Slice, and

Fruita Vital. Some of these juices are

very good in quality and some are

famous in market because of their

reasonable price. There is an intense

competition among all but Nestle

and Shezan are the market leaders

in Pakistan, both of them captured a

Figure 9 Market Trend

Figure 10 Competition Movement



huge share of local market. The companies have to compete against global,

regional and local manufactures on various factors including price, quality,

variety, availability and distribution. Mostly people attract on these two elements

price and quality, and if the company focuses on both dimensions than people

will surely attract towards them. There is an intense competition in promotion as

well but in promotion Fruiticana is far away from its competitors, because the

competitors are spending a handsome amount of their sales on promotion while

Fruiticana is not doing any promotion and this is the reason because of which

people are unaware about the brand, its high quality and price etc. Other

companies are competing with each other in promotion, and at the end

promotion is the main element which aware customers and prospects and

stimulates them to purchase their products. Fruiticana needs to move with its

competitors and should spend some amount in promotion sector.

4.4 Quality Assurance Process

Fruiticana gives emphasis on its quality and don’t compromise on it. There is

Quality assurance checkup after every purchase of raw material, during

manufacturing and after production batch testing, if they found any error and

quality issue than they return the raw materials immediately, and if they found

any quality issue after production then immediate dispose of the whole batch,

so that only best quality products are marketed in the market. This emphasis on

quality includes them in the top raked juices in the market.



Chapter 05

FUNCTIONS OF THE MARKETING DEPARTMENT

5.1 Marketing Strategy

The marketing strategy of Fruiticana Foods was developed to position its

products in the mind of customers by providing high quality products in

reasonable price and by distributing the product on a mass level to maximize its

profit. After segmentation on geographical and demographical basis, Fruiticana

is currently targeting all age of customers of Punjab, Khyber-Pakhtunkhwa and

Gilgit-Baltistan. They are offering a good product in marginally low price as

compare to the competitors; therefore they are getting fame in market.

Fruiticana is far away from their competitors in promotional activities. They didn’t

promote their products but because of their strong and active sales force they

are successful to grasp the attention of the customers which leads to increase in

the sales volume of the company. Distribution strategy is the key element of

every marketing strategy because it will helps the organization expand its reach

and grow sales. Distribution channel also helps in communication from

organization to end user and from end user to organization. Organization can

get information about the changing behavior of the consumer; their taste and

willingness; by utilizing all these information company takes decisions regarding

product quality, features and price etc. The distribution channel of Fruiticana

foods is simple because they sell their products to the registered distributor and

the distributors are responsible to sell them in market. Company gets free when

the products sell to the distributors. There are seven distributors in Lahore and

every distributor has given targets which they have to meet by utilizing their sales

force. Distributor can earn more profit by selling more products of Fruiticana so

they work hard to earn maximum profit. Fruiticana also give incentives on target

completion which motivates the distributors to work efficiently.



5.2 Product strategy

Product strategy consists of product planning, development and management.

The management worked hard to develop quality product, they have their

special formula because of which they are succeed to introduce tasty and

healthy juice. Currently Fruiticana is selling 10 flavors of fruit juice, which shows

the management’s commitment with the customers. They have introduced

these flavors according to the demand and changing taste of the customers.

High quality assurance is their priority and for that they purchase high quality raw

material and quality control through lab testing before and after production. To

facilitate customers Fruiticana produce products in different sizes like in Pet

bottle there are 03 sizes available in market they are; 250 ml, 500 ml and 1000 ml

while in Carton pack juice there are 02 sizes available in market they are 200 ml

and 250 ml.

5.3 Pricing Strategy

Pricing strategy plays very important role to acquire market share where giant

competitors are already working and moving ahead. Price of the product is one

of the main elements of marketing mix. Companies often compete in the

market on prices of their products. Fruiticana is currently using the cost base

strategy, and they are charging a very nominal additional amount on their cost.

Fruiticana believes that the moderate price for a good quality product helps

them to attract more customer, as many of our customers are price conscious.

They are working to reduce their variable cost, so that they can earn more profit

without raising the price of product.

5.4 Distribution Strategy

To assure the availability of the product in market Fruiticana established an

effective channel of distribution. The distribution channel of Fruiticana foods is

simple because they sell their products to the registered distributors and the



distributors are responsible to sell them in market. Company gets free when the

products sell to the distributors. These distributors purchase Fruiticana juice in bulk

amount and then sell them in the market by utilizing their sales force. There are

seven distributors in Lahore and every distributor has given targets which they

have to meet by utilizing their sales force. Every distributor has 4 to 5 sales officers

which visits the markets on daily basis and meets with the retailers. The sales

representatives are hired by the distributor itself but two of them are paid by the

organization and rest of the sales representatives are paid by the distributors

themselves. Distributor and sales representatives get incentives on target

completion. We can say that Fruiticana is entering in the market with traditional

channel of distribution. The distribution channel starts from the company and

ends on final consumers. The distribution channel plays the role of bridge

between consumer and organization, they can get information about the

consumers taste, want, behavior, market trend and consumers complains about

different products, so making a good relationship with distributors and retailers

are always in benefit of the organization. It will help to reduce research cost as

well.

5.5 Channel of distribution of Fruiticana Foods Chart 3 Channel of Distribution

Producer

Distributor/Whole seller

Retailer

Consumer



Chapter 06

CRITICAL ANALYSIS

The market analysis and the sales of last 04 years shows that there is a

continuous increase in sales and demand of the products, which shows that the

products are good and marketing strategy is leading the organization towards

right direction. The beverage industry is growing year by year, which is an

opportunity for the organization. The market trend is changing from home made

juices towards packaged juices, and the total sales volume of packaged juices

in both domestic and international market is increasing. In last 04 years they are

succeed to capture new domestic and international market as well.

In August 2012 Fruiticana Foods faced a problem in its Mango (250 ml) carton

pack juice, which were used too blown after few days of distribution but the

quick response from the marketing heads solve that issue, the issue was raised

because of the little change in previous formula. Fruiticana officials disposed all

the defected batches efficiently and delivered new products to the market. In

May 2014, Fruiticana Foods were reported from 3 distributors of Lahore that the

color of Guava (250 ml) pet bottle juices change after few days of delivery.

Fruiticana officials along with the lab team reached those areas where the

problem was raised. They have found that the problem was only in the same

batch products and after a thorough study they concluded it that, juices need

at least 72 hours to set well, those products were delivered immediately after its

production that is why they had to face that issue, later on all the distributors

were delivered new products.

The major competitors of Fruiticana are Fruitine, Maza, Vivo, Shezan, Fresher,

Country, Tops, Slice and Fruita Vital. Some of these juices are very good in

quality and some are famous in market because of their reasonable price.

Fruiticana is competing with them in both quality and price, so need to maintain



its quality and sustain its price so that they captured a huge market share and a

strong position against its competitors. Fruiticana foods is going to construct two

new factories in Lahore so that they can increase their production level and

capture more domestic and international market share.

Table 1 Competitive Analysis

Brand Name Quality Reach Distribution Promotion

Nestle’ Fruita

Vital

Best Better Best Excellent

Shezan Better Best Good Best

Fruiticana Best Good Best Fair

Fruitine Good Better Good Good

Tops Good Better Better Good

Vivo Good Good Better Better

Fresher Good Good Fair Better

Slice Best Better Better Best

Maza Better Good Better Better

Country Good Fair Good Good

Fair , Good , Better , Best , Excellent



Chapter 07

INTERNSHIP PROGRAM

My internship program was started from 30th March 2015 and ends on 31st May

2015. In these two months I was given different tasks. I spent almost one month in

Carton pack factory where I supervise the production of Carton pack, Batch

testing, Packing process, Handling dispatches, Raw material demand process

and Stock taking while the rest of the days I spent in market from where I got

information to complete my task of “Market research on current status and

provide strategies for future growth”.

The carton pack factory is not owned by Fruiticana foods they are producing

juices in this factory by purchasing production hours from the factory owner. This

factory is owned by Amrus Foods. In this Factory 15 different companies

produce their products. Every company has their offices in the premises of the

factory. 50 workers worked in this factory in two shifts on daily wages and the

wages are paid them by factory owners while the producing companies paid

the factory owners on hourly basis. There is a proper system of stock taking and

factory provides space for the companies to store their finished goods until they

have dispatched. The owner of the factory provides the companies proper

place to stock their goods as well as their raw materials. The factory is equipped

with modern technology and the factory owners take good care of cleanliness

of the factory. At the end of every day factory owners check their record and

tally them with the stock which makes the producing company’s feeling secure.

The factory follows the rules and laws given by government of Pakistan like the

minimum wage rate, no underage worker, and proper system for female

workers etc.



Chapter 08

TRAINING PROGRAM

As my specialization is in Marketing so my concern department was marketing. I

worked with production and marketing team. Company provides training to

every new hired employee by their seniors and experienced members. As job

training is very important for productivity and motivation. Training programs

expand the knowledge of employees regarding his job. Trained employees are

able to better perform their jobs. The Fruiticana Foods is concern about training.

I saw that the new sales officers are attached with the experienced employees

for two weeks; during these two weeks they get a detail orientation about the

organization, their products, hierarchy, co-workers and also observe how to deal

with the retailers and how to convince new retailers etc. After these two weeks

of training they start their work and visit the markets individually.

8.1 Project

I was thinking that my internship will be based on observational knowledge and

learning, while the reality was extremely changed. They started my internship

with orientation sessions, and every department provided me ample information

about their works, roles and responsibilities. After the detailed orientation of the

departments they attached me with the production manager of carton pack

juices Mr. Ahsan Jamal. He takes an orientation session and introduced me to his

workers and office staff. He told me visit the factory daily. He shows me the

production process of juices and told me everything about the production,

before and after production testing, raw materials used, formula of the product,

dispatching process, import documents and the process of raw material imports

etc. After spending few days as observer in factory he told me to handle the

production just to test my knowledge about the production and raw materials

usage. I took that challenge and produced 5 batches of juice, I also did the



before and after production batch test and the results were accurate. After that

day he gave me charge to handle all the matters of production. After spending

one month in production factory the CEO gave me a project consists of three

questions, questions were;

8.1.1 Where do Fruiticana stands today in market against

competition? Detailed evaluation of prices, quality, positioning and

also give your valuable suggestions on these points.

Fruiticana Juice is the core brand of Fruiticana Foods. To know the current status

of Fruiticana in market I conducted market research in which I met with

distributors, retailers, sales team and end consumers of Fruiticana as well as the

general public. Research was mainly based on observation, in which I tried to

observe the consumer behavior and purchase pattern of consumer. I also took

informal interviews from the distributors and retailers, and conduct group

discussions with sales team to know about the problems they are facing in

market.

The task given to me by the officials of Fruiticana Foods was to find out the

current position of Fruiticana in the competitive market where numbers of

beverage companies are there and trying to capture maximum market share.

The core benefit of Fruiticana and other beverages are to satisfy the need of

thirst and provide refreshment especially in hot summer season. The culture plays

a major role in making consumer want because of culture, geographic area

and demographic factors, the want of people are different like some consumers

prefer water and soft drinks to satisfy their needs of thirst and some others prefer

juices. The category which prefers juices can also be divided into more sections

according to their purchasing power. In market I had to see both price wise

competitor and quality wise, because Fruiticana is a good quality product in

reasonable price.



If we take a look of company’s revenue than it is clear that the organization is

growing year by year and its sale is increasing both domestically and

internationally but the market share is still very low, because the beverage

industry is a big industry and to capture a reasonable market share Fruiticana

Foods needs time and struggle.

Fruiticana is in between introduction and growth stage where it is trying to

capture as much market share as they can. They are spreading their business all

over the Pakistan by utilizing their strong sales team. The sales team of Fruiticana

is strong enough to maximize the market share. As I mentioned earlier that

Fruiticana is a high quality juice and in quality it is competing Nestle and Shezan

juices. In many stores the retailers said that they have switched from Nestle and

Shezan to Fruiticana because it is as good as Nestle & Shezan and people can

enjoy good juice in reasonable price. Price of this product is average like not too

much low and not too much high. There is space for the company that they can

increase the price but for that they need to make a good image in consumers

mind, need to increase the brand knowledge and awareness, they need to

focus on promotional activities so that consumer can easily recognize the brand

and the demand of Fruiticana increase from the current level. Fruiticana is not

working on positioning, what I take positioning is, to increase the value of brand

in the mind of consumers, for that purpose organization need to focus on

marketing mix and the most important element of marketing mix which is

promotion.

I observe that behavior of consumer against Fruiticana is impulse buying

behavior, which means they are not too much aware about the product but

purchasing it because of its availability to satisfy their need. Only one poster

cannot motivate people towards the product, if you really want that people

know your product, purchase it and become a loyal customer than you should



do work on positioning strategies. The strategies of positioning are, Product

Strategy, Pricing Strategy, Promotion Strategy and Placement Strategy.

Product Strategy: Fruiticana need to work on it because product is the core

thing. Fruiticana is already good in quality, they need to maintain it and ensure

its timely availability in the market also continuous effort on innovation in

products like introduce new flavors, different size of product etc. There is also

need to focus on production capacity because the product must be produced

enough to fulfill the demand of market, and if any problem arise in the product

timely action should be taken by the organization to increase its goodwill in the

market. There must be a proper system of quality control which ensures the

quality.

Pricing Strategy: Fruiticana is currently following the cost based pricing where

they charge a nominal amount after fulfilling their cost. The extra amount

charged by them is lower than competitors’ products. Fruiticana is working on

reducing their cost so that they can gain much profit. I think they should

continue the same because lots of customers are price conscious and they

prefer to buy such things which are good in quality and available in reasonable

price.

Promotion Strategy: Fruiticana is not doing anything on promotion. There is only

one type of poster and I saw that posters are also missing from points and shops

where the product is available. The negative impact of zero promotion is that,

people are unaware about Fruiticana and many of the buyers buy Fruiticana

because of availability and suggestion of the retailer. If the organization want to

maintain a good image in consumers mind and to increase its sales volume than

they should promote their product and the best medium is T.V because T.V ads

are consists of both audio and video, which can attract more consumers and

the impact of Television ads are greater than other electronic mediums. Prime

time ads are costly but most effective one.



Placement Strategy: Placement strategy is also very important in positioning

strategy because the organization has to decide that through which channel

they are going to deliver their valuable goods in the market. The distribution

channel of Fruiticana foods is simple because they sell their products to the

distributors. There are seven distributors in Lahore and every distributor has given

targets which they have to meet by utilizing their sales force. Every distributor has

4 to 5 sales officers which visits the markets on daily basis and meets with the

retailers. The sales representatives are hired by the distributor itself but two of

them are paid by the organization and rest of the sales representatives are paid

by the distributors themselves. Distributor and sales representatives get incentives

on target completion. To maintain good relationship with these distributors

organization should conduct monthly meetings with them and also give them

some extra incentives in shape of lucky draw of most productive distributors etc

which will create a competition among them and ultimately the sale of

organization increase.

8.1.2 What we are doing good and what are area for improvement?

Fruiticana is good in quality and its price is also good enough. Fruiticana is a

quality brand in reasonable price and follows the cost leadership strategy which

leads them towards success. They need to increase its production volume and

also work on its marketing strategy especially on promotion and spreading

awareness among general public the information about its brand. They need to

work on making good relationship with their distributors and retailers. They need

to understand the retailer power and give them value so that they will fairly

display Fruiticana brand.



8.1.3 How can we double increase our sales in next one year time?

Give recommendations.

First of all Fruiticana needs to increase its production capacity and volume

because I observed that many of the orders remain pending for many

days because of empty stock. This will affect the company’s goodwill.

Secondly Fruiticana is not doing anything in promotion side, they need to

think and make some good promotion campaigns. They need to

advertise their products so that people get aware about the product and

its price.

They should work on gaining and retaining relationship with their

distributors and retailers.

They need to induct some new sale points from where people can

purchase Fruiticana juices.

Fruiticana officials need to target some new areas because two provinces

of Pakistan is still untapped by Fruiticana.

They should adapt intensive strategies which are Market Penetration and

Market Development. Via Market Penetration they can increase market

share in current market through greater marketing efforts and with the

help of Market Development strategy they can target new geographic

areas which are not targeted yet.

Fruiticana can also use integration strategy by which they can gain

ownership or increased control over distributors and retailers.

By working on these points I am sure that Fruiticana can easily double increase

their sales in just one year time period.



Chapter 09

CRITICAL ANALYSIS

On the period of internship I observed Job Descriptions and found that the

responsibilities of the employees were Multi-tasking. The environment of the

workplace is entirely different from the concepts which I studied in books. So I

found that to survive in the cut-throat competitive era we need to develop

multi-tasking skills along with dynamic personality and strong communication

skills. I spent one month in production factory, I saw that the production

capacity of Fruiticana is not enough because they are producing the products

in a factory by purchasing production hours by the owner of the factory. Mostly

big companies have their own production units but Fruiticana has only a pet

bottle production unit and don’t has carton pack production unit, which affects

the cost and also sales of the company because of low production. I saw that

many orders remain pending because of empty stock. Fruiticana needs to take

serious action regarding production capacity of the product, because the

demand is increasing day by day and to meet the market needs they should

increase their production volume.

In theory I read that the production manager handles the production of the

product while in the carton pack factory the production manager was assigned

my jobs like he has to produce the product, test the product in lab, handles the

important financial matters, deals with the bank while importing the raw

material, look after the dispatch process and stock taking. I saw that he used to

come in office at 9 am while his off timing was not 5 pm rather he used to sit for

long and often for whole night. This timing issue is not good for the organization;

they should hire assistant production manager to divide the burden of

production manager so that production manager can give complete focus on

quality of the products.



Promotion is very important element of marketing mix and there was too much

emphasize on promotion in books but in Fruiticana I saw that they are not doing

anything for promotion like advertisement, signboard, pamphlet, flyer and sales

promotion activities. They are just using their sales force and they are working in

market to make sale of Fruiticana to different retailers in the market. The result of

no promotion is that, customers are unaware about Fruiticana, although the sale

is increasing but the product knowledge in consumers is too much

disappointing.

Mostly big organizations use integration strategy to maximize the profit and to

run the flow of distribution smoothly. Companies maintain good relationship with

distributors and retailers, which helps them to remain up to date with the market

trend and consumers behavior, because the actors of distribution channel plays

a major role in flow of information from consumer to organization. Fruiticana is

not doing so much to maintain good relationship with its distributors and retailers.

I think by keeping in view the importance of retailers’ power, Fruiticana should

not only maintain a good relation with distributors but also make a relationship

with its retailers, so that they give proper space for Fruiticana products in their

shelves and also refer the products to the customers.



Chapter 10

SWOT ANALYSIS

10.1 Strength Quality

Company uses the best quality raw material to

develop best quality product, so the quality of the

product is the strength of the company.

Responsiveness

The proactive responsiveness of the business can

have a major impact on company’s decision.

Strong Management

Fruiticana has a strong management team, who are able to avail

opportunities.

Cost

The low cost will help the organization to charge low price as well as to gain

more profit.

Price

Competitive and marginally low price of the product is also the strength of

Fruiticana.

Honest and Determined Employees

Fruiticana has honest and determined employees, which are working

continuously to achieve the organization’s goals and objectives.

Qualified and Dedicated Sales staff

The Sales staff of the company is qualified, dedicated and trained. They

have experience in the field of marketing.

Figure 11 Strengths



10.2 Weaknesses

Production Capacity

Main weakness of the company is production

capacity. Fruiticana cannot fulfill the demand of

many customers especially in hot summer season

when the demand of product is high.

Product Reach

Fruiticana did not cover all the four provinces of Pakistan till now. It is only

distributing in two provinces Punjab and Khyber Pakhtunkhwa.

Public Awareness

Because of its poor promotion strategy people are unaware about the

product and this is weakness of company.

10.3 Opportunities Market Trend

The changing market trend from home made fruit

juices to packaged fruit juices is the opportunity

for the organization.

Increase distribution network

Fruiticana has a chance to increase its distribution

network in other cities of Pakistan, which are not targeted yet.

Promotion

Advertisement and promotion can also increase the sales and awareness of

Fruiticana brand in general public.

Population

The increase in population is also an opportunity for Fruiticana.

Figure 12 Weaknesses

Figure 13 Opportunities



10.4 Threats

Intense competition

Intense competition in juice and beverage

industry is a major threat, because if any of the

competitors offers a good package than a

large number of customer can divert towards

them.

Technological advancement

Technology is getting advance day by day, so this a threat for Fruiticana that

if any of the competitors or new entrant going to use the new technology

than it will surely reduce the cost and also increase the production of the

competitor.

Political instability

The political instability in parent country (Pakistan) can also affect the

business of Fruiticana.

Inflation

Inflation and instability of the Pakistan economy can affect the purchasing

power of the large number of consumers.

Government policies

If the government change its policy regarding juices and beverage industry

and impose taxes than the product cost will increase which tends to increase

in the price of the product.

Figure 14 Threats



Chapter 11

FINDINGS

After spending two months in Fruiticana foods I found some issues in the

company’s operation and marketing strategy. If they work to solve these issues

than they will surely get success to increase their sales and profit margin also

market share.

Production Capacity

Production capacity of Fruiticana is low; I observed that many of the

orders remain pending for many days because of empty stock.

Product Awareness

Fruiticana is not doing anything in promotion side, which is why the

product knowledge among public is almost nil.

Relationship

Fruiticana is not taking any prominent steps to maintain good relationship

with its distributors and retailers.

Sales Points

There are only three sales points in Lahore which is very low as compare to

the competitors.

Availability

Product is not available in whole Pakistan.

Strategies

Fruiticana is not using appropriate strategies for growth and market share.

Aware about competitors

Fruiticana is not taking the competitors moves and strategies in to

consideration; in fact in many things company is unaware about its

competitors.



Chapter 12

RECOMMENDATIONS

Production Capacity

Fruiticana should increase its production capacity of both pet bottle and

carton pack juices.

Product Awareness

They need to think and make some good promotion campaigns. They

need to advertise their products so that people get aware about the

product and its price.

Relationship

Fruiticana foods should work to develop a good relationship with its

distributors, for that purpose they can arrange a monthly or yearly grand

meeting with its distributors.

Sales Points

Fruiticana should induct new sales points in big cities from where

consumers can easily get the products.

Availability

The two main provinces of Pakistan are still not targeted; Fruiticana should

target those areas as well after increasing the production level.

Strategies

Fruiticana foods should adapt intensive strategies which are Market

Penetration and Market Development. Via Market Penetration they can

increase market share in current market through greater marketing efforts

and with the help of Market Development strategy they can target new

geographic areas which are not targeted yet.

Aware about competitors

Fruiticana should also have, keep a hawk eye on their competitors and

their brands, consumers, prices, quality and their marketing or supply way.



Chapter 13

CONCLUSION

Fruiticana Foods is a private venture. It is a food and beverage company and

has always been dedicated to the health and interests of customers and to this

end, keeps introducing delicious and healthy food and beverage products.

“FRUITICANA” is a brand name of Fruiticana Foods. Fruiticana starts its journey

with only two flavors in pet bottle and with a small team and nowadays there

are 10 flavors of Fruiticana juice. They introduced these flavors due to consumer

variations not only in taste, rather also in the lifestyle. Juices are available in Pet

bottle (250, 500 and 1000 ml) and in Carton Pack (250 and 200 ml). Fruiticana is

a quality brand having a large variety of flavors in competitive price; its

distribution is also good but still needs to improve its reach to the untapped

areas. Competitors are spending a handsome amount of sales on their

promotional activities while Fruiticana is not doing anything for promotion,

neither a single advertisement is on aired till yet and nor a single advertisement

published in any newspaper or magazine. Just a single poster cannot aware

and stimulate people. People are unaware about the brand but still the sale of

company is satisfactory and this is because of the highly motivated sales team

which is working in market to enhance the revenue of the organization.

Fruiticana is using good quality raw material to develop best quality product. Its

management team is so strong and they are working to reduce the cost of the

product to maintain the price of the product at same level for a long time so

that they get success to retain its customers. The changing market trend from

home made fruit juices to packaged fruit juices is the opportunity for the

organization but the inflation and instability of the Pakistan economy can affect

the purchasing power of the large number of consumers. If Fruiticana foods

adapt intensive strategies like market development and market penetration

they can easily capture a huge market share in no time.



.

References

Aaj News. (2013, September 10). Retrieved July 03, 2015, from News Channel:

www.aaj.tv

Fruiticana Foods. (2015, February 10). Retrieved May 25, 2015, from Fruiticana Orchard:

http://www.fruiticana.com.pk/

Unpublished documents and reports of Fruiticana foods

Report on Fruiticana Foods and Beverage Company

Documents

Transcript of Report on Fruiticana Foods and Beverage Company