A CHANNEL MANAGEMENT BUSINESS CASE

GROUP MEMBERS
THE HARDWORKING AVENGERS

GROUP MEMBERS:
ABDUL SAMAD JAVED (20764)
ABDULLAH SHAHID (20632)
M.HASSAN BASIT (18530)
OSAMA RIAZ (20541)
SYEDA AMMARA HASHMI (19260)
ACKNOWLEDGEMENT
We would like to thank all those people who have helped and facilitated us with their great
knowledge and guidance in our Distribution and Channel Management project on Shan Foods.
What does not kill you makes you
• Sir Hussain Aftab Changi, facilitator for Distribution &Ager wohi karogay jo kerte rahay
stronger ho,To wohi hoga jo hota raha
Channel Management course at IoBM hai,Ager chahtay ho k woh na ho jo
• Mr. Qamar Bilal, ASM
Warr gaye!(FB Area) at Shan Foods hota raha hai,Mat karo woh tum jo
• Mr. Haris Shabbir Rana, KAE at Shan Foods kertay rahay ho.
• Mr. Usama Najeeb, KAE at Shan Foods
• Mr. Abdur Rehman, Head of Damage Stock at Shan Foods
• Mr. Shahzaib, TSO- GT (FB Area) at Shan Foods
• Mr. Ali, TSO- WS (FB Area) at Shan Foods
• Mr. Zaid Ahmed, Ex-TSO (SITE) at Shan Foods
OUR VISITS & MEET UPS
INTRODUCTION
• Shan Foods (Pvt.) Limited, started in 1981 in Karachi, is
a Pakistani producer of packaged spice mixes used
in Pakistani cuisine, Indian cuisine and other countries
of South Asia

• The company's products are available in 65 countries across 5

continents, and the popularity of such products is due to the
easy-to-cook require traditional meals

• Net worth of Shan Foods is PKR 13.5 Billion

SHAN FOODS’ VISION

Establish Shan Foods as the leading

culinary brand, offering authentic
traditional recipes & home food solutions,
with relentless focus on excellence in all
we do, ensuring a wholesome experience
for our consumers around the world
SHAN FOODS’ COMMERICAL BIG PICTURE
CORPORATE OBJECTIVES SALES OBJECTIVES
• To move from Branded House to House of • By 2020, Shan Foods has planned to double its
Brands business turnover (base year: 2016)

• Diversifying the risk of the portfolio (80%+ • Limiting Trade spend and offers (TOs) spending to a
business from spices category) minimum percentage of invoicing

• Expanding avenues of business and increase • Shan Foods has to ensure one of its critical KPI of On
its exports particularly in Africa, South Shelf Availability (OSA) to be maintained at 95%
America, UK, USA & Canada
• Shan Foods works on Zero Overdue Policy where it
ensures that the credit of distributor must be reimbursed
within the specified credit period
MUST HAVE SKUs LG OTC OUTLETS (80 SKUs)
MUST HAVE SKUs LG OTC 2 OUTLETS (70 SKUs)
MUST HAVE SKUs MT-LGs-SSS (98 SKUs)
SHAN FOODS’ SALES STRUCTURE
Execution Responsibility Strategic Responsibility
Head of
Sales

Sales Dept Trade Marketing Modern Trade or

Dept Key Account Dept.
GSM- GSM-
SOUTH NORTH HEAD HEAD
of TM OF MT
RSM-
KHI& RSM-
TCM TCM- TCM- KAM- KAM- KAM-
BALOC- SINDH NORTH CENTERAL SOUTH
SHOOP SPICES RECIPE
HISTAN

TME KAE KAE KAE

ASM
(4 IN KHI)

TSO-
TSO- GT TSO- LG TSO- WS
BIKER
JOB DESCRIPTION OF SALES FORCE
• Drives the best use of commercial resources within the sales organization. Customer/ Distributor Profitability
evolution, Rentals, Trade Spend
HOS • Custodian of all distributor & customer agreements, their timely renewal and their compliance and arranging
financial facilities required by distributors

• Implementation of organizational policies to ensure adherence to Operational, Legal and Financial requirements
laid down in regional and local laws, internal guidelines and SOPs
GSM • Ensures full alignment of the sales & distribution teams towards financial processes & to ensure accurate
allocation and monitoring of trade spend and Sales Force related Costs in respective region.

• Develops and executes business plans to deliver volume and profit goals
RSM • Coordinates with trade marketing to seek insights on category development in region
• Measuring productivity and operating efficiencies on monthly basis

• Coverage expansion as per aligned fiscal objective. Providing guidance to TSO, setting sales target and
ASM conducting regular business reviews to evaluate performance
• Collecting customer feedback and market research and present to RSM/GSM at aligned frequency

• Implementation of annual operating plan which KPIs are visitations of daily planned shops, ensuring range
TSO availability in market and utilization of promotional budget by distributor and DSR
• Capability development and market training with regular follow-up with DSF
JOB DESCRIPTION OF TM
• Lead, develop and accelerate Shopper focus, POP development,
turning Shopper Insight into actionable in-store solutions, within
HEAD OF TM and across categories
• Define priority channels, and create tailored Category Channel
Plans for each Category

• Responsible for implementing the discipline of marketing at point

of purchase/trade level for forecast the assigned
TCM category/categories
• Integrating brand goals with sales goals by planning strategic
activities that give input into commercial

• Manages customer interactions with product at point of purchases

TME by implementing different trade tools such as Gondolas & FSUs
and enhancing shopper experience through shopper marketing
JOB DESCRIPTION OF MT
• Responsible to manage customer relationship, distribution and
HEAD OF MT turnover management in Local and International Key Accounts
throughout country

• Job holder is responsible to ensure planning and execution of

customer (Key Accounts) plans in line with company and channel
objectives
KAM • Responsible to manage customer relationship, distribution and
turnover management in Local and International Key Accounts in
the assigned region

• Follow channel strategic direction and agree business plans with

Key Account customers including effective and efficient route
KAE planning
• Obtaining in store space allocation at best possible rate, as part of
Trade Activities implementation
SALES AND MARKETING INTERFACE
TEAMWORK
Sales and Marketing departments work together to achieve their monthly
and yearly targets and work on mutual goals i.e. understanding shopper’s
needs and solving shopper’s problems. Both the teams at SHAN
FOODS meet formally in a monthly meeting as well as communicate
with each other over Whatsapp company groups.

Both teams share their views and work over following topics:

• MARKET COMPETITIVE INFORMATION

• CONSUMER OFF TAKE

• CONSUMER PROMOTIONS

• TRADE MARKETING PLAN

DISTRIBUTOR’S STRUCTURE ORGANOGRAM
Chaw
la
Grou
p/
NPD
Business Development • May be overlooking multiple businesses for BURQUE
Head

National Business Line Manager • Solely looking after Shan Foods

Regional Business Line Manager • Two RBLM, one for North and one for South Region

• Sits distribution wise.

Area Sales Manager • In case of Karachi: 1 ASM Korangi, 1 ASM FB Area,
1 ASM SITE, & 1 ASM in Malir
• Category-wise FSEs: 4 FSEs under 1 ASM: 1 for
GT, 1 for WS, 1 for LG. & 1 for Biker
• Morning/Evening meeting is headed over by
Field Sales Executive
Principal’s TSO. Distributor’s FSE & OB
participate and share their input in it
• Deliveryman reports to order booker
Order Booker/Distributor’s Sales Rep • Driver and loader report to Deliveryman
INDUSTRY AND CATEGORY BREAKDOWN
FMCG

Foods & Home Personal

Beverage Care Care

Beverages Foods

Processed Staple

Seeds and
Lentils Vegetable Fruit Grains
Herbs

Preservative Coloring Flavoring

Recipe
Sub-
Unbranded Branded Branded

Package Spice
Loose
CATEGORY POWER DRIVER
• SPEED TO SERVE: Quick, tasty & convenient solution

• HEALTHY & HYGIENIC: No use of chemicals and prepared in certified environment

• AFFORDABLE: Availability in 3 SKUs (Sachet, SP, DP)

• PREFERENCE FOR DESI FOODS: Spices exports increased by 11.77%

BELLY OF THE MARKET (IN VALUE)
TOTAL SIZE OF MARKERT: 230 BILLION TOTAL SIZE OF BRANDED MARKET: 30 BILLION

SPICES INDUSTRY OVERVIEW (PKR) BRANDED SPICES INDUSTRY OVERVIEW (PKR)

30 Billion, 13% 4 Billion, 13%

Shan Foods
9 Billion, 30%
3 Billion, 10% National Foods
Mehran Foods
Branded
Others
Unbranded

200 Billion, 87% 14 Billion, 47%

BELLY OF THE MARKET (KARACHI IN VALUE)
TOTAL SIZE OF KARACHI MARKET: 4 BILLION

MARKET SHARE OF RECIPE IN KARACHI

Shan Foods National Foods Others

0.1 Billion, 2%
0.4 Billion, 10%

3.5 Billion, 88%

GROWTH TRENDS

REASONS FOR GROWTH: FY Jul- GOLY (in

GROWTH TRENDS Jun Value)
18.00

NET WORTH (PKR BILLION)

• In 2016 Shan Foods change 16.80 15-16 -
16.00
their Sales Head, and his target
was to double the company in 14.00 13.50 16-17 29%
net worth in next 3 years 12.00
11.14
10.00 17-18 30%
• There were a lot of firing and 8.00
8.57

a new team was developed, 18-19 21%

6.00 6.64
which was solely focused on
4.00 19-20 25% est.
the mission of making Shan
Foods double in next 3 years 2.00
0.00 CAGR
15-16 16-17 17-18 18-19 19-20
26.12%
SHAN FOODS PRODUCT PORTFOLIO

RECIPE PLAIN SPICES SALT PASTE ACCOMPANIMENTS

MIXES (CHAAT MASALA)

ACCOMPANIMENTS DESSERTS INSTANT MAA DIPITT

(PICKLE) NOODLES
SHAN FOODS RECIPE MIXES

CURRY RICE STIR FRIED BBQ

VEGETARIAN MEAT FISH HALEEM

TENDERIZER
VALUE WISE CATEGORY SHARE

WHOLESALE
GENERAL TRADE 5%
3%
5% 10%
7% Sachet: 35% Sachet: 30%
30%
SP: 15% SP: 25%
35% DP: 10% 10% DP: 20%
15% Shoop: 10% Shoop: 10%
MAA: 15% Salt: 10%
PS & CM: 7% Plain Spices: 5%
Salt: 5%
Other: 3% 20%
10%

15% 25%
10%
PS: Plain Spices SP: Single Pack
CM: Chat Masala DP: Double Pack
VALUE WISE CATEGORY SHARE (SPICES)

GENERAL TRADE WHOLESALE

6%
6%

16%
Sachet: 55% Sachet: 37.5%
SP: 23% 38%
SP: 25%
DP: 16% 31%
DP: 31.25%
PS: 6% PS: 6.25%
55%

23%

SP: Single Pack DP: Double Pack 25% SP: Single Pack
PS: Plain Spices DP: Double Pack
CATEGORY SHARE MODERN TRADE (IN VALUE)
1% 5%
Single Pack 22%
5%
2% Double Pack 22%
2% 22%
Salt 12.88%
1%
3% Pickel 6.34%
Plain Spices 12.17%
6%
Shoop 5.94%
Vermicelli 2.93%
Meat Tenderizer 0.66%

12% Chaat Masala 2.11%

22% Chuttni 1.93%

Paste 4.90%

6% Dessert Mixes 0.56%

Instant Food 5.26
13%
CATEGORY SHARE MODERN TRADE (IN VALUE)
VALUE WISE CATEGORY SHARE (SPICES MT)
CATEGORY SHARE MODERN TRADE (IN VALUE)
22%

39%
Single Pack 39%
Double Pack 39%
Plain Spices 12.17%

39%
AVG. MONTHLY SALES OF SHAN FOODS’ RECIPE IN KARACHI
KA/MT GT/LG TOTAL
Shan Foods’ (CARTONS) (CARTONS)
CARTONS
MONTHLY
Recipe deals in
multiple SKUs and Single Pack
6,500
SP 13,000 19,500

varieties.
As per the Double Pack
14,000
DP 7,000 21,000
Manager, Shan
Foods recipe sales Sachet
33,000
33,000
doubles in season
such as Eid-ul-Fitr, VALUE IN RUPEES
Eid-ul-Adha and SP 19,500*5446.08= 106.2 Million

Ramazan. DP 21,000*5084.64= 106.7 Million

SACHET 33,000*4236.28= 139.7 Million

SHAN FOODS RECIPE MIX PRICE STRUCTURE
TERTIARY
 PRIMARY SALES SECONDARY SALES
SALES

IP per IP per Dist. Dist. TP per TP per Trade Trade MRP per MRP/
MRP/
W in Carton Carton incl. Margin/ Margin/ Carton Carton Margin/ Margin/ Carton Carton
SKU Configuration piece
gm. excl. GST 13% GST Carton Carton excl. GST incl. 17% Carton Carton excl. GST incl. 17%
PKR
PKR PKR PKR % PKR GST PKR PKR % PKR GST PKR

Sachet 30g 288 4,236 4,787 105 2.50% 4,892 5,724 426 8.72% 6,151 7,197 25
Single
65g 144 5,446 6,154 136 2.50% 6,290 7,359 638 10.15% 7,998 9,357 65
Pack
Double
120g 72 5,084 5,745 127 2.50% 5,872 6,871 512 8.73% 7,383 8,639 120
Pack

• 13% tax on invoice price

• 17% tax on trade price
• 17% tax on retail price
COMPETITOR’S MARGINS
TERTIARY
 PRIMARY SALES SECONDARY SALES
SALES

IP per MRP/
IP per Dist. TP per TP per Trade MRP per
Carton Dist. Trade Carton MRP/
W in Carton Margin/ Carton Carton Margin/ Carton
SKU Configuration excl. Margin/ Margin/ incl. 17% piece
gm. incl. 13% Carton excl. GST incl. 17% Carton excl. GST
GST Carton % Carton % GST PKR
GST PKR PKR PKR GST PKR PKR PKR
PKR PKR

Sachet 30g 288 4,271 4,826 85 2% 4,911 5,746 392 8% 6,139 7,183 25
Single
65g 144 5,484 6,198 109 2% 6,307 7,380 567 9% 7,947 9,298 65
Pack
Double
120g 72 5,041 5,696 100 2% 5,797 6,783 579 10% 7,363 8,614 120
Pack

• 13% tax on invoice price

• 17% tax on trade price
• 17% tax on retail price
COMPETITOR’S MARGINS

  PRIMARY SALES SECONDARY SALES TERTIARY SALES

MRP per
IP per Dist. TP per TP per Trade Trade MRP/
IP per Dist. Carton MRP/
W in Carton Margin/ Carton Carton Margin/ Margin/ Carton
SKU Configuration Carton excl. Margin/ excl. piece
gm. incl. 13% Carton excl. GST incl. 17% Carton Carton incl. 17%
GST PKR Carton % GST PKR
GST PKR PKR PKR GST PKR PKR % GST PKR
PKR

Single
50g 144 5,460 6,170 177 3.25% 6,348 7,427 571 9% 7,998 9,358 65
Pack
Double
100g 72 5,041 5,697 164 3.25% 5,861 6,857 527 9% 7,384 8,640 120
Pack

• 13% tax on invoice price

• 17% tax on trade price
• 17% tax on retail price
COMPETITOR’S MARGINS

TERTIARY
 PRIMARY SALES SECONDARY SALES
SALES

IP per Dist. TP per Trade Trade MRP per MRP/

IP per Dist. TP per MRP/
W in Carton Margin/ Carton Margin/ Margin/ Carton Carton
SKU Configuration Carton excl. Margin/ Carton excl. piece
gm. incl. 13% Carton incl. 17% Carton Carton excl. GST incl. 17%
GST PKR Carton % GST PKR PKR
GST PKR PKR GST PKR PKR % PKR GST PKR

Single
65g 72 2,131 2,408 53 2.50% 2,461 2,880 196 8% 3,076 3,600 50
Pack
Double
100g 72 3,805 4,299 95 2.50% 4,395 5,142 395 9% 5,537 6,479 90
Pack

• 13% tax on invoice price

• 17% tax on trade price
• 17% tax on retail price
CLASSIFICATION OF CHANNEL ARCHITECTURE
Shan Foods Channel
Architecture

General Trade Wholesale HORECA/OOH Biker

Modern Trade/Key National chains
(27,000 SHOPS) (450 SHOPS) Channel
Accounts
(38 SHOPS)
Large
Groceries Jodia Bazar Restaurants CSD/Utility Manghopir
Imtiaz
Superstore Small Bolton
Groceries Market Kati Pahari
Naheed
Superstore Kiryana Shahab uddin
(Mkt.) Banaras

Chase
Landhi 6
(Market)

Carrefour
CHANNEL WISE BUSINESS CONTRIBUTION
Pakistani market is generating business of PKR 11 Billion for Shan Foods out of which 70% is generated by
Recipe Mix (PKR 7.7B) whereas, around 84% (PKR 9.24B) is generated by the spices (Recipe Mix + Plain
Spices)
Value Share in
VALUE SALES Sales
OOH 2% NC 4%
General Trade PKR 1.87 Billion
GT WS Wholesale PKR 2.30 Billion
GT 24%
Large Grocery PKR 1.53 Billion
KA/MT 20%
LG KA/MT
Key Accounts PKR 1.53 Billion

OOH NC Out Of Home PKR 0.11 Billion

National Chains PKR 0.36 Billion

LG 20%
Total PKR 7.70 Billion
WS 30%
CHANNEL WISE UNIVERSE CONTRIBUTION

GT Universe 52,000 shops

Shan Foods Coverage
27,000 shops
Indirect Distribution
14,720 shops
Direct
Distribution
12,280 shops

DIRECT DISTRIBUTION= 45.48%

INDIRECT DISTRIBUTION= 54.52%
CHANNEL WISE UNIVERSE CONTRIBUTION
 Shan Foods is
available at every
wholesale market in 450
Karachi WS accounts
Universe in total

All Covered

KA 38
Universe accounts
 Karachi’s MT/KA in total
contributes 55% of the
overall sales of entire
channel
SALES TARGET SETTING & MONITORING

SALES TARGET MONITORING

• NPD have ORACLE that is
• Sales targets are set by top
used by OBs as well. Real-time
down approach
sales data can be accessed
• Learning, feedbacks, & through it
market insights go bottom
• Shan Foods have SSS
up in order to ensure that
(Secondary Sales Solution)
realistic and achievable
(DBMS) that is used to monitor
targets are set
sales data. Everyday sales in it
are updated by midnight
DISTRIBUTOR’S BUSINESS CONTRIBUTION
 Shan Foods now holds a sole distributor for all its distribution across
the Country

 Burque Corporation, a PKR 47 Billion company, does 80% of

distribution for Shan Foods in Pakistan

 The businesses from Local Distributors were taken back and was given
to Burque in order to streamline the business processes and make
distribution hassle-free

 The shipment goes to 4 different locations (Malir, Korangi, FB Area,

and SITE)

 SDs are used in most of the cases where NPD has no distribution
DISTRIBUTOR MANAGEMENT PROCESS

RBLM NBLM
Order FSE ASM
(Headcount (Headcount
Booker/ (Headcount of (Headcount
of 3-5 of 2 RBLMs)
Salesman 4-8 DSRs) of 2-4 FSEs)
ASMs) Managed by
reports to Managed by Managed by
FSE principal’s Managed by principal’s
principal’s
(supervisor) TSOs principal’s Head of Sales
ASM
RSM
DISTRIBUTORS ROI
 As Shan Foods has a Mega Distributor (NPD) therefore, ROI is calculated at National Level
by Head of Sales

 It is the responsibility of ASM to ensure 2% ROI for his respective branch of NPD

 FB Area Distribution Fleet Size: GT: 10 Ravi, LG: 6 Ravi, WS: 2 Shahzore, Bikes: 7

 To ensure 2% distributor’s ROI, Shan Foods is subsidizing the cost by:

50% share in
van hiring cost 100% monthly
50% share in
(no fuel & target incentives
fixed salaries
maintenance is of DSRs
of DSRs
subsidized)
ROI CALCULATION

NPD- BURQUE
KORANGI DISTRIBUTOR
Earnings = PKR 13.2 million Earnings = PKR 27.5 million
Expenses = PKR 12.9 million Expenses = PKR 26.875 million
Investment = PKR 12 million Investment = PKR 25 million
   
ROI (General Trade): ROI (Modern Trade):
(13.2-12.9)/12= 2.5%/month (27.5-26.875)/25= 2.5%/month
Yearly ROI= 30% Yearly ROI= 30%
RURAL/PERIPHERAL MARKETING STRATEGY
• Shan Foods has developed a
• Principal • Distributor • Sub- bikers channel. They operate
in outskirts where vans cannot
distributor be operated

• NPD hire Sub-distributors

SDs in areas
where NPD with consent of Principal’s
Shan Foods Burque/NPD ASM to supply rural areas and
does not
operate peripheries where it does not
operate
AMR & REPLACEMENT POLICY
Shan Foods use AMR policy instead of FMR because it is risky to use
FMR in food due to health reasons, which could lead to legal actions.
Lifted stock is replaced by the running SKUs.

AMR APPLICABLE AMR NOT APPLICABLE

• Infested • Mouse Cut
• Leakage • Burned
• Expired • Box D-shaping, Broken Bottle
• Quality Issues • Oil & Ghee Spillage
(Lumping, etc)
VISIT TO DAMAGED STOCK UNIT
CREDIT MANAGEMENT

LARGE
WHOLE MODERN
GROCERIE
SALE TRADE
S
6-8 DAYS 20-25 DAYS
6-8 DAYS
FIGHTING AGAINST TRANSSHIPMENT
CAUSE:
Targets are not achieved

COMPANY’S POLICY:
Zero tolerance against Transshipment

PAST TRACK RECORD:

Distributors were fired when they found guilty of Transshipment

IDENTIFICATION TECHNIQUE:
• Inter Distribution (outside City): If Punjabi Biryani sales immediately shoots up in Southern region
then RSM should realize that territory violations are underway as Bombay Biryani is sold in South
• Inter Distribution (within City): Check distributor’s stamp on the carton to identify from which
distribution the goods are transshipped
• Intra Distribution: Check the bills of the trade in order to identify the Order Booker

REMEDY: Targets should be set by keeping the territory demographics and consumption patterns in mind.
TRANSSHIPMENT (OUTSIDE CITY)
TRANSSHIPMENT (WITHIN CITY)
F.B AREA DISTRIBUTION KORANGI
DISTRIBUTION
FIGHTING AGAINST PRICE UNDERCUTTING
By Law, Shan Foods can’t say anything to the trade if they are selling the products below Trade Price

CAUSE:
• Target achievement of distributor before deadline
• Quick liquidation of stock from distribution’s floor
• Target achievement of OB before deadline
• WS pass through some percentage of the margin to customer in order to increase its sales
• MT pass through some percentage of the TOs and rentals to customer in order to increase its sales

COMPANY’S POLICY:
Strict compliance action is taken against those who create imbalance in the market

PAST TRACK RECORD:

Less lucrative TOs were given in future
Distributors were fired when found doing price undercutting

REMEDY: Shan Foods has TSOs to supervise the DSRs and OBs and to teach them how to make effective sales
call rather than investing up your salary’s part in market to achieve the targets.
FIGHTING AGAINST STOCK INFILTRATION
CAUSE:
When the market demand is greater than Shan Foods’ production capacity or distributor’s supply

COMPANY’S POLICY:
As Shan Foods products demand are season based therefore, it monitors closely the consumption patterns of each
category in every season. The Company ensures that the trade demand is fulfilled timely and they don’t have to go
to WS to buy the products that are short on retail.

PAST TRACK RECORD:

Never happened. We know that in Eid-ul-Adha, BBQ recipe mix, meat tenderizers and plain spices will be high on
demand therefore, our production department works accordingly.
MODES OF TRANSPORTATION

Volume Load

Value Load
Bike Shahzore
Suzuki Pickup
Equipped with running SKUs Avg. 35 to 40 cartons Avg. 85 cartons
RS. 5,000 to 10,000 (For Biker RS. 1-1.5 lacs (For GT) RS. 3-3.5 lacs (For LG & GT)
 
Channel)
Fleet Size of FB
Area Distribution:
GT: 10 Ravi
LG: 6 Ravi
WS: 2 Shahzore
 
 
40 ft. Container
Mazda 20 ft. Container
Avg. 1,400 cartons
Avg. 300 cartons Rs. 3 M (For Primary
Avg. 700 cartons
RS. 4-6 lacs (For WS) Shipment)
GEOGRAPHICAL COVERAGE (KARACHI)
• Shah Faisal Colony, • Saeedabad,
Korangi, Khokhrapar, Bhains • Shan Foods is moving towards
Landhi, Defence, Peeri, Model Colony, Mega Distribution Model
Clifton, Malir, Gulshan- e- through which Burque/NPD
Mehmoodabad Hadeed will handle Shan’s distribution
in areas where it operates
Malir (New
Korangi branch of • NPD has opened a new branch
NPD) in Malir to cater Shan Foods
coverage expansion
• Gulistan-e-Jouhar, Gulshan, • Orangi, FC Area,
Waterpump, Aisha Manzil,
Liaquatabad (A & B), North Baldia, Manghopir, • Biggest branch (Area wise):
Nazimabad, and till Nazimabad SITE area, HUB, FB Area Branch
No.4, Gulshan-e-Maymaar, Northern Bypass,
Highway, Dumba Goat, New
Karachi, North Karachi, West Whart, Kharadar,
Bufferzone, Sohrab Goath, Meethadar, Garden, • Biggest branch (Value &
SMCHS, Bahadurabad, Tariq Nazimabad No.7, etc. Volume Turnover wise): SITE
Road, Sharfabad, Bahria Town,
Saadi Town Branch

FB Area SITE
CHANNEL DEVELOPMENT & MAPPING
In KA/MT, Karachi contribution is more than 55% of the total business generated from
KA/MT (i.e. PKR 0.85 Billion) and the remaining 45% is spread over other cities
particularly Lahore & Islamabad.

Total no. of KA/MT in Karachi = 38 outlets

Total no. of KA/MT in Lahore & Islamabad = 40 outlets

LARGE
GROCERY • Minimum
• High footfall
Value/Outlet
• Generate
(2k-10k)
high • Value/Outlet • Category
monthly (10k-20k) handler
sales • Frequent • In PJP
orders Route
• 1-2 Gondola
KA/MT
• Populated GT
Area
PJP DEVELOPMENT PROCESS
PJP of Shan Foods is developed Channel and
Based on Geographical area wise
Geographical Channel Based
Coverage After morning meetings, TSO assigns targets to
Order Bookers

Shan Foods is working on increasing their

Past Record of coverage which has also increased their route
Target Based
an Order Booker size
Each shop in the particular’s day PJP must be
covered on time

Current & New

Customer Wise
PJP & ROUTE FREQUENCY
TIME SPENT ON BEAT SIZE FREQUENCY
CHANNEL
TRADE OF PJP OF VISIT
GT 5 to 15 mins 40 shops Once in a week

LG 20 to 30 mins 25 shops Twice in a week

Twice in a week (In case of

WS 30 to 45 mins 10 to 12 shops Jodia Bazar order booker daily
visit it)

KA/MT 50 to 70 mins 6 accounts Once in a week

ROUTE TO MARKET
PJP (NPD- KORANGI BRANCH)
WAREHOUSE & STOCK MANAGEMENT
STOCK COVER DAYS: 7 DAYS
STOCK PILING SOP
Stacking Height is written on each carton of every product & SKU.

Sachet
• 10 cartons

Single Pack
• 8 cartons

Double Pack
• 6 cartons
PRIMARY SALES ORDERING PROCESS
Stock placed at distribution
Company’s stock DC is
and a suggested order is DC is received by logistics
generated and the stock not
proposed against that (Agility) and they prepare
available goes to pending
stock (by Distribution stock van
stock
ASM/Shan Foods ASM)

Distribution generates Warehouse incharge receives

Order is forwarded to invoice against that order the order and crosscheque the
Burque distribution head (money deducts from their order placed VS received
office and verified with account) and receives by (everything is tallied such as
stock report supply chain to process the stock, DC Number, expiry
order etc)

Order approves by Burque Shan Foods coordinator Stock offloads and Incharge
headoffice and is sent to adds it in SAP to punch it puts distribution’s stamp
Shan Foods regional head then the order comes to on DC and driver takes that
office distribution again DC with him
SHAN FOODS’ PRE-SELLING MODEL
Order booking Order delivery
Order booker starts their journey on Stock is loaded as per load sheet
assigned PJPs requirement

Delivery man visits customers for

Visits customers
stock delivery.

Instrument is collected against the

Generates orders
bill

Orders are punched through mobile Delivery man returns to warehouse

application to submit the instruments.

Generates load sheet

SHAN FOODS’ SPOT-SELLING MODEL
Shan’s Spot selling Model
Order
booker/
salesman
goes on
Shan Foods uses Spot route
Selling Methods for Bikes are used for spot
“Maa” spices and selling that operate in Order booker/
sachet packs of Shan outskirts area salesman goes Asks for stock
Foods recipe mix back to requirement
warehouse for and delivers
cash stock
submission

Cash is Bill is issued

collected on against the
the spot order
CLAIMS & SETTELMENTS
TRADE OFFERS
RENT
Discounts
Acquisition of
desired touch points

Fixing percentage of
shelf share

DAMAGES
SETTLEMENT
Claims in cases of
quality issues and High liquidating SKUs of
expired stock Korma, Bombay Biryani
and Karahi are used for
claim settlement

www.presentationgo.com
CLAIMS & SETTELMENTS
PROPORTION OF CLAIMS
Sales & SETTELMENTS

5%

20%

Trade Offers
Rent
Damages

75%
SHIPMENT AT NPD- FB AREA BRANCH
SALES INCENTIVE STRUCTURE


OB’s Basic Salary: PKR 18,000
VALUE & VOLUME
Value & Volume achievement

Value target 100%: RS 2,000
INDIVIDUAL BRAND TARGET
Achievement of individual’s value targets of
Shoop, Dipitt, Recipe Mix 
Brand target 100%: RS 1,500

QUALITY OF SALES
Sales of 25% or less in last week of month

100% target : RS 1,500

PRODUCTIVITY
You have to made a certain number of
bills/orders per month 
Productivity target 80%: RS 1,500
ERP INTEGRATION WITH BUSINESS

08 09
Delivery plan is made
After generation of through delivery
06 bill the delivery
order DO is locked
order & delivery vans
leaves as per the
04 Syncing of data
that is shared with delivery plan
Shop wise order from HHD to
warehouses
are generated in ERP system
application

02 10
Selection of shops,
05 Stock
Stock report
report is
is
SKUs and insertion
of quantity
03 Submission of
07
Automatic
finalized
finalized after
delivery
after
Closing with
Automatic delivery process
process
hand held device generation of
generation of with
with inclusion
inclusion ofof
a signature bill
bill through
in Shan foods to through
ERP
RTG
RTG ifif any
any
ERP
KPO

01
OB use android
phones to take 12 11
orders Text files of bills are
Files comprise of codes of generated a day
shops, SKUs and time, are before & shared to
uploaded to DBMS SHAN’s KPO by
knows as SSS (Secondary
Sales Solutions)
BURQUE’s KPO
SALES TRAINING & DEVELOPMENT
In-house Sales Trainer: Mr. Atif Murtaza

• Training of TSOs on
Excellence in Market
Execution

• Training of Merchandisers
(Third Party: Resource Link)
IN STORE MERCHANDIZING (MT)
SHELF IN SHELVES (PRIMARY
CATEGORY)
IN STORE MERCHANDIZING
PODIUM CATEGORY PLACEMENT AT
MT
(Secondary
OBJECTIVE: Touch Point
Generate Visibility & Quickat MT)
Stock Liquidation
IN STORE MERCHANDIZING
PODIUM CATEGORY PLACEMENT AT MT
OBJECTIVE: Generate visibility and increase shelf share

FSU IN CATEGORY PLACEMENT

IN STORE MERCHANDIZING (WS & GT)
SACHETS DISPLAY ON HOT ROD & CARTON DISPLAY IN WS SHELF STOCKING IN GT
OBJECTIVE: To increase visibility and it empowers sales team
MERCHANDIZING IN LG
SIGNAGE FASCIA FOR LG
OBJECTIVE: Visibility
PLANOGRAM
PLANOGRAM
CUSTOMER DEVELOPMENT PROCESS
Shopper Experience Consumer Insights on
Enhancement Recipe Mix
•Shan Foods is primarily focusing •Consumer’s association of branded
on display drives, maintaining spices with hygiene and quality
shelf share and unique product is one big advantage for
merchandising using modern trade Shan Foods
tools to enhance shopper’s
experience •Consumers prefer convenience and
trust branded spices in the case of
•Customer development recipe mixes
techniques being fully utilized in
northern region while the goal of •They believe in the perfect blend of
southern region is shifted towards recipes as per the regional tastes
retaining customers and to give
maximum customer satisfaction
OBPPC

BRAND A S S O C I AT I O N OCCASION

Family dinner/ Bonding

over food / family meal-
time/
OBPPC (PACKAGE ROLE)
ROLE ENTRY FREQUENCY UPSIZE UPSCALE
TRANSACTION AMOUNT AMOUNT
TRIAL GENERATION
PACK’S To attract and Economical
Frequent consumption One time buying
OBJECTIVE persuade new benefits and save
on the bundle
customers to use the
brand

Trial and Interval buying/ Big pack for increased Bundle buying
SHOPPER’S testing family size consumption for later use
OBJECTIVE
Volume Big Saving with
CORE Entry price Bigger size and same quality
point
DIFFERENTIATE package

60 grams 60 Grams x 4
30 Grams 60+60 Grams
RS. 225
EXAMPLE RS. 25 RS. 65 RS. 120
RS 0.94/grams
Re. RS. RS 1/grams
0.83/grams 1.08/grams
OBPPC (UNIQUE SHOPPER NEED)
Case: 2 Married women buying recipe mix for dinner time
Occasion: Dinner at home
Channel: Mini Mart

Objective: Cooking dinner Objective: Cooking

for in laws party dinner for husband

Package: Double Pack Package: Single Pack

Bombay Biryani Bombay Biryani

• 15 years to marriage
• Newly wed daughter in law
• Takes care of household
• Takes care of her husband
• Worries about people’s
• Likes cooking
health and taste
OBPPC (TVC DISSECTION)
DISSECTION
BBQ plan baney tou Dewar kay saarey
dost yahin atay hain, koi kahey aesa BBQ
kahin Chakha nahi tou dusra kahey aesay
masalay ka jawab nahi. Shan Tikka
masalay sey sab ki zaeqaydaar
farmayeshen poori hoti hain, tou dosti ka
maza chakhtay hain. Shan, Khushian
Chakh Lou
OCCASION: Friends & Family Fiesta

BRAND: Shan Recipe Mix

PRICE: Rs.120

PACK: BBQ Double pack

CHANNEL: MT
THANK YOU