Introduction to the Project Shan single pack

SKU (Repositioning)
Currently, there are more than 20 million people living in Pakistan, out of which majority
belongs to low income groups. Therefore, consumers generally are in search of better value
propositions and always want to opt for discounts and saving offers.
In order to cater to this segment, Shan foods launched (when) 25 gm SKU of their masala brand
which became an instant hit with the masses. The SKU, which is priced at Rs. 20 has grown
phenomenally at an unparalleled growth rate of almost 50% year on year. This clearly helped
Shan to penetrate into the mass consumer segment but the growth also brought along several
issues in its wake.

Problem Identification-What went wrong?

After the launch of Sachet SKU, the company realized that cannibalization was taking place. The
single pack SKU offering 50 gms at a price of Rs. 50 which has been the flagship mainstay for
Shan foods since the early 1980s has seen a steady decline in sales growth year on year. AC
Nielsen industry reports has cited the growth of single pack SKU at a bear 6% while the sachet
SKU has seen an unprecedented growth of 36%.
Despite the sales volume increase company has not witnessed an increase in profitability due to
lower margins on sachet pack as compared to single pack SKU.

Project Vision
To bring consumers back to the single pack SKU and increase the frequency of single pack
consumption on a weekly basis.

Faculty Advisor for the Project

We will be advised by Prof. Hanif Ajari throughout the Project.

Project Objectives
1. To determine reasons for the major shift from single pack to Sachet.

o Find out the perception consumers hold towards Single Pack and Sachet pack
SKU.
o In-depth study of the present usage of single pack SKU across SEC A1, SEC A,
and SEC B household.
o Improved Convenience of Sachet over single pack.
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2. To determine industry dynamics of the recipe category with a focus on single pack
players.
o Conducting of a retail study
3. To determine and design a new marketing strategy to lure consumers back to the single
pack SKU and increase its usage and frequency.
o How can Shan single pack SKU proposition be changed to reposition it as a High
Value Investment.
o Build a communication strategy to rekindle the way consumers perceive usage of
single pack recipe mixes.
4. Design of final strategy to revitalize the single pack SKU
o Develop a comprehensive retail/channel management strategy to complement the
new competitive strategy
o To bring a turnout in the bottom-line of single pack SKU

Scope
The company has factories in Karachi and Lahore. We have planned to carry out our research in
the major cities, Karachi, Islamabad, and Lahore.
Based on our secondary research, we may focus on those areas where brand Mehran has not
penetrated that well. Revo will have a high chance of acceptance and a successful entry in these
areas.

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Research Methodology

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Alternatives
The above research will help us find out different alternatives that could be chosen by the
company for its brand Revo.

Budget for the Project

The expenses incurred during our research will include:
o Traveling expenditure
o Arrangements of focus groups and interviews
o Stationery expenditure

Risks and Constraints of our Research

Listed below are potential risks and constraints faced by our project:

Time horizon and the risk of overrunning it

Changing global economic conditions, which might affect our analyses of Revos pricing
strategies
Political instability, which would hinder our schedules of Market research
Sampling errors
Limited budget and the risk of overrunning it
Threat from competitors (especially Suzuki Motors)
Privacy / Confidentiality issues

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