BENAZIR BHUTTO SHAHEED UNIVERSITY

GROUP MEMBERS
USAMA SAIF (B191136)
SYED HANNAN ABBAS (B191125)
WAQAS NAREJO (B191140)
MAJID ALI (B191065)
SAJID ALI (B191107)
M.AFZAL(B191077)

BBA (Morning), 10th Batch, 8th Semester

REPORT
MEZAN OIL
SUBJECT
RETAIL MARKETING
SUBMITTED TO
DR. MASOOD HASSAN

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{This Page is Left Intentionally Blank}

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 ACKNOWLELDGEMENT

All the praise to the Almighty ALLAH who is the most beneficent and merciful by his grace and help we
found the right company for the completion of Retail marketing project report and we would also like to
express our greatest regards and gratitude to our course instructor sir masood hassan for his guidance and
constant support throughout the process without whom we would not be able to complete this project
report on time and we are also thankful to him for assigning us this project that really helped us gain real-
life experience that will be beneficial for us in future.

And special thanks to the Assistant Brand Manager Mr Habib uz Zaman, General Manager Marketing Mr
Alamgir Janjua and Export Manager Mr Arshad Qadeer of Mezan Oil for giving us time and cooperation
which made it possible for us to complete our assignment and I would also like to appreciate the efforts of
the group members that contributed to completion of this assignment.

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TABLE OF CONTNETS :

INTRODUCTION.........................................................................................................................1
INDUSTRIAL BACKGROUND..................................................................................................1
PORTER FIVE FORCES……………………………………………………………………...2
THREAT OF NEW ENTRANTS..………………………………………………………….…..2
BARGAINING POWER OF SUPPLIERS..................................................................................2
BARGAINING POWER OF CUSTOMERS..............................................................................2
THREAT OF SUBSTITUTES...................................................................................................2
COMPETITIVE RIVALRY.......................................................................................................3
SWOT ANALYSIS.......................................................................................................................4
STRENGTH...................................................................................................................................4
WEAKNESS..................................................................................................................................4
OPPORTUNITY............................................................................................................................4
THREAT..........................................................................................................................................4
PESTLE ANALYSES...................................................................................................................5
POLITICAL FACTOR...................................................................................................................5
ECONOMICAL..............................................................................................................................5
SOCIAL..........................................................................................................................................5
TECHNOLOGICAL......................................................................................................................6
LEGAL............................................................................................................................................6
ENVIRONMENTAL................................................................................................................... 6
POLITICAL FACTOR.................................................................................................................7
CONCLUSION............................................................................................................................7

References......................................................................................................................................8

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ABOUT THE COMPANY
Mezan was founded in 1951-1952 under the corporate name "Paracha Textile Mills Limited." The Governor
General of Pakistan, His Excellency Khawaja Nazimuddin, lay the foundation stone.
The present management took over the company in 1983, and the Board of Directors kept on the same aim
of providing excellent edible oil in a relatively young expanding industry in Pakistan.
The Ghee Unit Batch refinery was founded and began producing various brands of Ghee and Cooking Oil,
such as Mezan Canola Oil, Mezan Cooking Oil, Mezan Sunflower Oil, Mezan Banaspati, Olivola, Dil Dil
Banaspati and Cooking Oil, Paracha Banaspati and Cooking Oil, Awaz Banaspati and Cooking Oil, and
Mezan Perfect Fry, among others.
Mezan has gained popularity in Pakistan over the last several years owing to its diverse product offering,
continual innovation, very appealing package forms, affordable prices for all consumer segments, and
memorable advertising.
The "Mezan" brand was nationally introduced in 2008 with the category's most memorable media
advertising campaign, "HAR CHEEZ MEZAN MEIN ACHI LAGTI HAI!"

INDUSTRY ANALYSIS
In the Five Forces Model, Porter explains that in any industry there are five forces that influence what
happens within the industry:
Five forces that shape the competition
1. Threat of new entrants
2. Threat of substitutes
3. Bargaining power of customers
4. Bargaining power of suppliers
5. Competitive rivalry

1. Threat of New Entrants

The oil sector is organized in an oligopolistic manner. As a result, the market is dominated by a few
significant businesses. Companies entering the cooking oil market are adopting various innovations such as
developing cooking oil that are healthy and nutritious. They can easily create hurdles for new enterprises
since they have been in operation for a longer length of time.
Mezan oil company need to analyze their threat of new entrants because if their competitor entering in their
market without any government barrier, It is very risky for Mezan because of new entrants Mezan may lost
his customers but if in market of oil there is some Government barriers so any new entrants cannot easily
enter in oil market.

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As a result, the danger of new local entrants would not be a major source of concern. However, given the
amount of oil imported, this aspect is crucial. Because, in order to function efficiently, the oil sector will
need to focus on reducing the amount of edible oil imported.

2. Threats of Substitutes
When it comes to edible oil substitutes, the three most common materials are desi ghee, banaspati ghee, and vegetable
oil. To understand how they work, we look at their consumption patterns. Geographies are the two distinguishing
variables; urban and rural. The consumption trend in Pakistan is as follows.

Desi Ghee 0.04

Veg. Ghee 0.64
Cooking Oil 0.09

3. Bargaining power of customers

Buyer bargaining power poses a significant challenge to the oil business. Because there are other rival
brands on the market. It is vital for any organization to satisfy its clients in terms of pricing and quality.
Otherwise, buyers will move to different brands or types of edible oils.

4. Bargaining Power of Suppliers

The cooking oil processors are dependent on major raw materials - oilseeds (soybean, sunflower, rapeseed,
safflower. The bargaining power of suppliers (in this sector oil producers) is quite weak. This is due to the
small size of the companies, which leads to the existence of a large number of them, with high production
costs and low competitiveness. The lack of cooperation between them negatively affects their bargaining
power against the major distribution chains.
Mezan has also a very wide channel of distribution which also makes it dominant on their substitute. Their
products are available all across Pakistan. In terms of distribution, company covering wide market
simultaneously 20 cities of Pakistan.

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 5. Competitive rivalry
There are many oil companies running in Pakistan, top of oil brands are following
1. Mezan
2. Habib
3. Sufi
4. Eva
5. Soya Supreme
6. Kisan
7. Seasons Canola
8. Tullo
9. Kashmir
10. CanOlive

These companies are threats for Mezan and have a very huge market in Pakistan.
Mezan has competing the top oil brands across Pakistan due to its wide variety of products, constant
innovation, highly attractive packaging formats, suitable prices for every consumer segment and memorable
advertising.

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DISTRIBUTION MAP:

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 SWOT ANALYSIS

Strengths
Malaysia,
Brand
Quality
Pricing
Product
Low
Huge Indonesia
Distribution
Gap
Dil
Global
Oil
International
Dil,
Prices
in
Capacity
Demand
Equity
Market
supply
Awaz
Range
Changes
Channel
TradeBan
chain
of on
60,Oil
(unbranded
Banaspati
Production
barriers oil)
to 70 % unbranded oil market gap Independent Distribution Channel
import
Paracha in the market
Premium
2Brand
High
Cater
Very
nd
brand
quality
costly
all
image,
type
in
oil,Pakistan
&
low
of
Trust
flexible
SKU’s
price,
withpricing
High
canola
quality
+ olive
oil product

Weaknesses

Opportunities

Threats

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PESTLE ANALYSIS
The PESTLE analysis is quite useful to assess the external effects on the oil industry which control the
dynamics shaping the enduring viability of the industry. PESTLE relates to Political, Economic, Social,
Technological, Legal, and Environmental aspects.

1. Political
If Mezan wishes to serve in a nation in Europe. Mezan must pay attention to these political factors, such as
taxation, import-export excise duties, government approval to enter the target market, and the introduction
of new products approved by the appropriate regulatory bodies. (Minahil Naeem Usman Akhtar Ahmad
Ajmal Saad Salman Ahmad M. Sami Ashraf, 2021)

2. Economic
Mezan created various economic plans for various target groups. When formulating economic policies in
accordance with the rate of inflation and the purchasing power of the various segments, the product's price
is an important choice to be made. (Minahil Naeem Usman Akhtar Ahmad Ajmal Saad Salman Ahmad M.
Sami Ashraf, 2021)

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3. Social
The world over, including Pakistan, dietary preferences are evolving quickly. People are increasingly
choosing to replace unsaturated fats in their meals with low cholesterol and low-fat edible oils. The main
causes of the rise in oil consumption are an increase in per capita income and the addition of health
awareness. Despite being an agricultural nation, Pakistan's agricultural system is ineffective and inefficient,
making it difficult for the country's citizens to meet their domestic needs for edible oil (National
Management Consultant, 2006). Consumer purchase decisions are influenced by a variety of external
factors, including culture, subculture, social class, reference groups, family decisions, and specific
situational determinants. People have changed their consumption patterns and become more conscious of
their diets as a result of urbanisation, higher levels of education, and increased income. (Zaryab Ali, Manan
Aslam, Shafqat Rasool, 2013)

4. Technological

5. All over the world including

Pakistan, dietary habits are changing
rapidly. People are becoming very
6. conscious to consume low
cholesterol and low fat edible oils
rather than unsaturated fats in their
meals. An
7. increase in per capita income along
with addition of health awareness is
main source of contribution to increased
8. usage of oil. Although Pakistan is an
agricultural country there is ineffective
and inefficient agri-system to fulfill

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 9. domestic requirements of edible oil
of the country inhabitants (National
Management Consultant, 2006).
10. Various external factors (such as
culture, sub-culture, social class,
reference groups, family decisions and
certain
11. situational determinants) influence
consumer’s purchase decisions. Due
to urbanization and higher level of
12. education and income, people have
become more conscious about their diet
and shift their consumption pattern
13. to healthier oils particularly in urban
areas while in rural areas; awareness
level is not much evident (Morelli
Using cutting-edge scientific techniques, olives is on the cutting edge of technological innovation. In order
to consistently guarantee the highest quality production outcomes, research and development are carried out
in collaboration with organisations, who used to make olive oil have a lower carbon footprint than many
other crops because they use extensive sustainability models and use very little water. Established olive
trees can live for hundreds of years or longer and can thrive in poor soils where many other plants cannot.
(RDN, 2019)

5. Legal
This also includes provisions on the traceability of food: the ability to track food products through the stages
of production.

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  Know and keep track of your buyers and suppliers,
 be aware of the products used during production
 and label finished goods for traceability in the event of a food safety issue.

By putting food management principles into practise, defining critical control points is a crucial part of
reducing the risks to food safety. The application of government controls to food products is a further crucial
factor. Products that are deemed unsafe will not be accepted. (Govt, 2018)

6. Environmental
 Effects of Cooking Oils on the Environment
 It covers animals and plants, reducing their oxygen levels. The plant and animals could suffocate and
perish if this occurs.
 It releases an offensive odour into the environment.
 It might contain harmful substances for the environment.
 They may also slow down plant and animal reproduction.

Political Economic
  Political Stability    Interest rate
   Competition    Exchange rate
   Taxation policy    Recession
   Proper permission    Inflation Rate
   Taxes Policy

Social Culture Technological

   Population growth    Impact of internet
   Age profile    Impact of technology transfer
   Health    Engine efficiency
   Life style    Communication
   Education level

Environmental Legal

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    Weather    Health and safety
   Earthquake    Competition law
   Local issue    Employment law
   Global warming    Proper permission
   Applicable rights

CONCLUSION
Pakistan The growth of Pakistan's oil industries is crucial for the country's economy since they give farmers
a place to sell their crops and consumers a source of food. These sectors have shown significant increase in
terms of both volume and processing power throughout time. These sectors urgently need to be strengthened
since it is widely believed that agricultural development today cannot occur without the value addition of
agricultural products. The involvement of agro-industries is crucial in achieving this. Argo-industries in
Pakistan are struggling with several issues that limit their ability to expand. To meet these problems, the
public and private sectors must each devote enough attention to overcome these challenges.

References
Govt. (2018). CBI. Edible oil laws, 1.

Minahil Naeem Usman Akhtar Ahmad Ajmal Saad Salman Ahmad M. Sami Ashraf. (2021). DALDA. scribd, 1.

NOBBS, J. (2021). The Environmental Impact of Vegetable Oils. JEFF NOBBS .com, 2.

Porter, M. (1998). Porter's Five Forces. 50MINUTES.COM.

RDN, D. F. (2019). The Cutting Edge Science and Technology of Food Oil Production. preparedfoods, 12.

Zaryab Ali, Manan Aslam, Shafqat Rasool. (2013). Factors Affecting Consumption of Edible Oil in Pakistan.
Researchgate, 1.

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