Fruiticana Juice Internship Report

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
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 i

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 ii

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 iii

Contents
DEDECATION ..................................................................................................................................... i
PREFACE ............................................................................................................................................ii
ACKNOWLEDGEMENT ....................................................................................................................... iii
List of Chart and Table...................................................................................................................... vii
List of Abbreviation ......................................................................................................................... viii
Executive Summary........................................................................................................................... ix
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 iv

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 Strategies ......................................................................................................................... 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
5.6 Critical Analysis of Marketing Department ....................................................................................... 18
5.6.1 Market Analysis of last 04 Years ................................................................................................ 18
5.6.2 Product Failures ......................................................................................................................... 18
5.6.3 Competitive Analysis .................................................................................................................. 18
Chapter 06 ....................................................................................................................................... 20
INTERNSHIP PROGRAM .................................................................................................................... 20
Chapter 07 ....................................................................................................................................... 21
TRAINING PROGRAM ....................................................................................................................... 21
7.1 Project ............................................................................................................................................... 21
7.1.1 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
7.1.2 What we are doing good and what are area for improvement? ............................................... 25
7.1.3 How can we double increase our sales in next one year time? Give recommendations. ......... 26
Chapter 08 ....................................................................................................................................... 27
CRITICAL ANALYSIS .......................................................................................................................... 27
Chapter 09 ....................................................................................................................................... 29
SWOT ANALYSIS............................................................................................................................... 29
9.1 Strength............................................................................................................................................. 29
9.2 Weaknesses ...................................................................................................................................... 30
9.3 Opportunities .................................................................................................................................... 30
9.4 Threats .............................................................................................................................................. 31
Chapter 10 ....................................................................................................................................... 32
“K.I.U Skardu Campus” Page v

FINDINGS......................................................................................................................................... 32
Chapter 11 ....................................................................................................................................... 33
RECOMMENDATIONS ....................................................................................................................... 33
Chapter 12 ....................................................................................................................................... 34
CONCLUSION ................................................................................................................................... 34
Bibliography .................................................................................................................................... 35
“K.I.U Skardu Campus” Page vi

List of Chart and Table
Chart 1 Hierarchy Chart ......................................................................................................................... 5

Chart 2 Marketing Dept Hierarchy ................................................................................................... 10
Chart 3 Channel of Distribution ......................................................................................................... 17
Table 1 Competitive Analysis ............................................................................................................. 19
“K.I.U Skardu Campus” Page vii

List of Abbreviation
CEO Chief Executive Officer
R.S.M Regional Sales Manager
A.S.M Area Sales Manager
H.R Human Resource
“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 30 th
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 x

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
“K.I.U Skardu Campus” Page 1

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
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 Business General

Manager Dev Manager Manager Sales
& Marketing
H.R Director
Manager Procurement
Office
Assistant R.S.M R.S.M
Production Production
Manager Manager Pet
Carton Pack Bottle
A.S.M A.S.M
Factory Staff
A.S.M A.S.M A.S.M
Sales Teams of Different Region

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

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 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 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.

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”.

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 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 Strategies

The marketing strategies of Fruiticana Foods were 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

5.6 Critical Analysis of Marketing Department

5.6.1 Market Analysis of last 04 Years
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.
5.6.2 Product Failures

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.
5.6.3 Competitive Analysis

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 Best Better Best Excellent
Vital
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 06
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 07
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.
7.1 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;
7.1.1 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.
7.1.2 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.

7.1.3 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 08
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 09
SWOT ANALYSIS
9.1 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.

9.2 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.
9.3 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.

9.4 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.

Chapter 10
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 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 11
RECOMMENDATIONS
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 12
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.

.
Bibliography
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

Fruiticana Juice Internship Report

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Internship Report on

“Wazir Muhammad Anjum”

Department of Business Management

This Internship Report is submitted to the Department of Business

Mr. Ibrahim Hussain

“K.I.U Skardu Campus” Page i

My humble efforts during the internship

“K.I.U Skardu Campus” Page i

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

“K.I.U Skardu Campus” Page ii

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

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

I would also like to express enormous gratitude to my respectable

I also acknowledge the help and pleasant gathering of all my

(Wazir Muhammad Anjum)

“K.I.U Skardu Campus” Page iii

“K.I.U Skardu Campus” Page iv

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

“K.I.U Skardu Campus” Page v

“K.I.U Skardu Campus” Page vi

List of Chart and Table

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

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

“K.I.U Skardu Campus” Page vii

CEO Chief Executive Officer

R.S.M Regional Sales Manager

A.S.M Area Sales Manager

H.R Human Resource

“K.I.U Skardu Campus” Page viii

“K.I.U Skardu Campus” Page ix

The marketing strategy of Fruiticana Foods was developed to position its

“K.I.U Skardu Campus” Page x

1.1 Brief History

“K.I.U Skardu Campus” Page 1

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

“K.I.U Skardu Campus” Page 2

1.3 Organization’s Policies

1.4 Major Competitors

“K.I.U Skardu Campus” Page 3

“K.I.U Skardu Campus” Page 4

2.1 Organization Hierarchy Chart

Finance Business General

Sales Teams of Different Region

“K.I.U Skardu Campus” Page 5

2.2 Number of Employees

2.3 Main Offices

2.4 Introduction of all Departments

2.4.1 Finance Department

“K.I.U Skardu Campus” Page 6

transactions, financial records, cash receipts and payments, salaries

2.4.2 Human Resource Department

2.4.3 Business Development Department

“K.I.U Skardu Campus” Page 7

media, study of different business reports; identifying market trends, market

2.4.4 Procurement Department

2.4.5 Marketing and Sales Department

“K.I.U Skardu Campus” Page 8

The organization structure of Fruiticana foods is straight and simple.

“K.I.U Skardu Campus” Page 9

3.1 Department Hierarchy Chart

“K.I.U Skardu Campus” Page 10

3.2 No. Of Employees in the Department

“K.I.U Skardu Campus” Page 11