History of Sugar

Introduction

Sugar is a class of edible crystalline substances including sucrose, lactose, and fructose. Common table sugar (sucrose) is made from sugar beets or sugar cane. Human taste buds interpret its flavor as sweet. Sugar as a basic food carbohydrate primarily comes from sugar cane and from sugar beet, but also appears in fruit, honey, sorghum, sugar maple (in maple syrup), and in many other sources. It forms the main ingredient in much candy. "Excessive" consumption of sugar has been associated with increased incidences of type 2 diabetes, of obesity and of tooth decay.

Origin and development of sugar through ages.

Originally, people chewed the cane raw to extract its sweetness. Indians discovered how to crystallize sugar during the Gupta dynasty, around 350 AD. John F. Robyt (1998) locates the two most probable origins of sugar cultivation as North East India or the South Pacific, which provide evidence of sugarcane cultivation as early as 10,000 BC and 6,000 BC respectively. Further archaeological evidence associates sugar with the Indus valley.

During the Muslim Agricultural Revolution, Arab entrepreneurs adopted the techniques of sugar production from India and then refined and transformed them into a large-scale industry. Arabs set up the first large scale sugar mills, refineries, factories and plantations.

The 1390s saw the development of a better press, which doubled the juice obtained from the cane. This permitted economic expansion of sugar plantations to Andalucia and to the Algarve. The 1420s saw sugar production extended to the Canary Islands, Madeira and the Azores.

The Portuguese took sugar to Brazil. Hans Staden, published in 1555, writes that by 1540 Santa Catarina Island had 800 sugar mills and that the north coast of Brazil, Demarara and Surinam had another 2000. Approximately 3000 small mills built before 1550 in the New World created an unprecedented demand for cast iron gears, levers, axles and other implements. Specialist trades in mold-making and iron-casting developed in Europe due to the expansion of sugar production. Sugar mill construction developed technological skills needed for a nascent industrial revolution in the early 17th century.

After 1625 the Dutch carried sugarcane from South America to the Caribbean islands — where it became grown from Barbados to the Virgin Islands. The years 1625 to 1750 saw sugar become worth its weight in gold. With the European colonization of the Americas, the Caribbean became the world's largest source of sugar. These islands could supply sugarcane using slave labor and produce sugar at prices vastly lower than those of cane sugar imported from the East.

During the eighteenth century, sugar became enormously popular and the sugar market went through a series of booms. As Europeans established sugar plantations on the larger Caribbean islands, prices fell, especially in Britain. By the eighteenth century all levels of society had become common consumers of the former luxury product. At first most sugar in Britain went into tea, but later confectionery and chocolates became extremely popular. Suppliers commonly sold sugar in solid cones and consumers required a sugar nip, a pliers-like tool, to break off pieces.

Beginning in the late 18th century, the production of sugar became increasingly mechanized. The steam engine first powered a sugar mill in Jamaica in 1768, and soon after, steam replaced direct firing as the source of process heat. Today, a large beet refinery producing around 1,500 tones of sugar a day needs a permanent workforce of about 150 for 24-hour production.

Table sugar (sucrose) comes from plant sources. Two important sugar crops predominate: sugarcane (Saccharum spp.) and sugar beets (Beta vulgaris), in which sugar can account for 12% to 20% of the plant's dry weight. Some minor commercial sugar crops include the date palm (Phoenix dactylifera), sorghum (Sorghum vulgare), and the sugar maple (Acer saccharum). In the financial year 2001/2002, worldwide production of sugar amounted to 134.1 million tones.

The first production of sugar from sugarcane took place in India. Alexander the Great's companions reported seeing "honey produced without the intervention of bees" and it remained exotic in Europe until the Arabs started cultivating it in Sicily and Spain. Only after the Crusades did it begin to rival honey as a sweetener in Europe. The Spanish began cultivating sugarcane in the West Indies in 1506 (and in Cuba in 1523). The Portuguese first cultivated sugarcane in Brazil in 1532.

Most cane sugar comes from countries with warm climates, such as Brazil, India, China, Thailand, Mexico and Australia, the top sugar-producing countries in the world. Brazil overshadows most countries, with roughly 30 million tonnes of cane sugar produced in 2006, while India produced 21 million, China 11 million, and Thailand and Mexico roughly 5 million each. Viewed by region, Asia predominates in cane sugar production, with large contributions from China, India and Thailand and other countries combining to account for 40% of global production in 2006. South America comes in second place with 32% of global production; Africa and Central America each produce 8% and Australia 5%. The United States, the Caribbean and Europe make up the remainder, with roughly 3% each.

Beet sugar comes from regions with cooler climates: northwest and eastern Europe, northern Japan, plus some areas in the United States (including California). In the northern hemisphere, the beet-growing season ends with the start of harvesting around September. Harvesting and processing continues until March in some cases. The availability of processing plant capacity, and the weather both influence the duration of harvesting and processing - the industry can lay up harvested beet until processed, but frost-damaged beet becomes effectively unprocessable.

The European Union (EU) has become the world's second-largest sugar exporter. The Common Agricultural Policy of the EU sets maximum quotas for members' production to match supply and demand, and a price. Europe exports excess production quota (approximately 5 million tonnes in 2003). Part of this, "quota" sugar, gets subsidized from industry levies, the remainder (approximately half) sells as "C quota" sugar at market prices without subsidy. These subsidies and a high import tariff make it difficult for other countries to export to the EU states, or to compete with the Europeans on world markets.

The United States sets high sugar prices to support its producers, with the effect that many former consumers of sugar have switched to corn syrup (beverage manufacturers) or moved out of the country (candy makers).

The cheap prices of glucose syrups produced from wheat and corn (maize) threaten the traditional sugar market. Used in combination with artificial sweeteners, they can allow drink manufacturers to produce very low-cost good

Sugar variants and international brands of sugar

So-called raw sugars comprise yellow to brown sugars made by clarifying the source syrup by boiling and drying with heat, until it becomes a crystalline solid, with minimal chemical processing. Raw beet sugars result from the processing of sugar beet juice, but only as intermediates en route to white sugar. Types of raw sugar include demerara, muscovado, and turbinado. Mauritius and Malawi export significant quantities of such specialty sugars. Manufacturers sometimes prepare raw sugar as loaves rather than as a crystalline powder, by pouring sugar and molasses together into molds and allowing the mixture to dry. This results in sugar-cakes or loaves, called jaggery or gur in India, pingbian tang in China, and panela, panocha, pile, piloncillo and pão-de-açúcar in various parts of Latin America. In South America, truly raw sugar, unheated and made from sugarcane grown on farms, does not have a large market-share.

Mill white sugar, also called plantation white, crystal sugar, or superior sugar, consists of raw sugar where the production process does not remove colored impurities, but rather bleaches them white by exposure to sulfur dioxide. Though the most common form of sugar in sugarcane-growing areas, this product does not store or ship well; after a few weeks, its impurities tend to promote discoloration and clumping.

Brown sugar is a sucrose sugar product with a distinctive brown color due to the presence of molasses. It is either an unrefined or partially refined soft sugar consisting of sugar crystals with some residual molasses content or produced by the addition of molasses to refined white sugar.

White refined sugar has become the most common form of sugar in North America as well as in Europe. Refined sugar can be made by dissolving raw sugar and purifying it with a phosphoric acid method similar to that used for Blanco directo, a carbonatation process involving calcium hydroxide and carbon dioxide, or by various filtration strategies. It is then further purified by filtration through a bed of activated carbon or bone char depending on where the processing takes place. Beet sugar refineries produce refined white sugar directly without an intermediate raw stage. White refined sugar is typically sold as granulated sugar, which has been dried to prevent clumping. Granulated sugar comes in various crystal sizes — for home and industrial use — depending on the application:

Coarse-grained sugars, such as sanding sugar (also called "pearl sugar", "decorating sugar", nibbed sugar or sugar nibs) adds "sparkle" and flavor for decorating to baked goods, candies, cookies/biscuits and other desserts. The sparkling effect occurs because the sugar forms large crystals which reflect light. Sanding sugar, a large-crystal sugar, serves for making edible decorations. It has larger granules that sparkle when sprinkled on baked goods and candies and will not dissolve when subjected to heat.

Normal granulated sugars for table use: typically they have a grain size about 0.5 mm across Finer grades result from selectively sieving the granulated sugar caster (or castor[19]) (0.35 mm), commonly used in baking superfine sugar, also called baker's sugar, berry sugar, or bar sugar — favored for sweetening drinks or for preparing meringue.

Powdered sugar, 10X sugar, confectioner's sugar (0.060 mm), or icing sugar (0.024 mm), produced by grinding sugar to a fine powder. The manufacturer may add a small amount of anticaking agent to prevent clumping — either cornstarch (1% to 3%) or tri-calcium phosphate.

Retailers also sell sugar cubes or lumps for convenient consumption of a standardized amount. Suppliers of sugar cubes make them by mixing sugar crystals with sugar syrup. Jakub Kryštof Rad invented sugar cubes in 1841.

International Scenario

The world sugar is facing heavy surplus for the second consecutive year in 2007-08. The latest forecast of the world sugar suggests production at 163-173 million tones consumption at 157-160 million tones with the surplus forecast for the over 10 million tones.

World production and consumption 2006-07 crop year was the year of recovery from long consecutive deficit to a surplus year, estimated up to 3 Million tones that ended with an average of 10 Mn tones. The world market remained under bearish pressure due to the sizeable surplus. High production expectations for year 2007-08 has further put the international market prices under pressure and is likely to continue for the year.

The sugar glut in India is the main cause of the depressed sugar prices in the world. The production 2007-08 in India is likely to overtake Brazil as world top sugar producer. International sugar organization forecasted India’s production as 33.0 million tones raw value against Brazil’s 29.20 million tones, both struggling hard to get rid of the surplus to the international market.

Thus the distinctive excess in the global production over consumption and the high export availability is expected to have direct impact on the sugar economy. Consumption and the stock ratio is to grow considerably. Its affects on the domestic process would be significant and particularly in the case of the good harvest expected.

Figure 1.1

Sugar Industry of Pakistan

Overview of the industry

Pakistan is the 13th largest sugar producing country of the world and is fairly self-sufficient in fulfilling its yearly sugar demand. There are total 77 sugar mills (41 in Punjab, 29 in sindh, 7 in NWFP) in Pakistan and major source of sugar production is through crushing sugarcane, however minimal portion of total sugar production is through processing beet. As per statistics of year 2006-07 total production of sugar in Pakistan was approx 3.52 million tones against total consumption of 3.95 million tones and the per capita consumption remained 25kg. Sugar mills in Pakistan utilizes approx 73% of the total sugarcane production to produce sugar, molasses and ethanol alcohol etc, however 7-8 thousand tones of GUR and other sweeteners are also produced by other than sugar mills. Recovery rate from sugarcane crushing and sugar production in 2006-07 was 8.96%.

Due to heavy government intervention over price fixation Sugar has never been a profitable product and the main source of profiteering for the sugar mills comes from selling byproduct likes molasses, ethanol in and outside Pakistan. Sugar price increase in the last 15year as compare to other essential commodities remained lowest as shown in tab 1.2.

Tab 1.2

Yeas Wheat-Flour

Veg Ghee Sugar Gur Fresh milk Rice

1990-91 3.6 19 11.26 8.24 7.71 6.101991-92 4.2 20.53 11.62 8.67 8.82 6.971992-93 4.44 20.08 12.29 10.03 9.90 8.061993-94 4.93 29.09 12.91 10.49 11.07 8.771994-95 5.78 30.99 13.74 11.07 12.17 9.091995-96 5.90 39.38 16.76 14.54 14.54 13.671996-97 7.32 42.76 21.26 18.67 15.12 12.851997-98 8.64 45.68 19.54 18.94 16.27 13.401998-99 8.35 54.00 19.09 17.19 17.71 14.501999-00 8.92 49.14 20.11 19.81 17.91 15.712000-01 9.80 44.82 27.11 26.31 18.23 15.352001-02 9.76 49.20 22.87 23.12 17.92 15.492002-03 10.14 55.25 20.77 20.45 18.35 18.072003-04 11.53 59.23 18.99 19.85 18.99 19.002004-05 13.32 59.98 22.73 22.65 20.91 20.082005-06 13.11 58.89 30.26 35.00 23.63 20.142006-07 13.59 68.06 32.40 40.35 26.36 21.94% Age 271.31 258.18 187.74 389.68 241.76 259.67

Role of TCP and Government Policies.

TCP plays a role of an interventionist to regulate and monitor the prices of sugar in the domestic market. TCP maintains a strategic butter stock of 400000 tones of sugar to guard against possible shortfall of supply in the market and untoward price escalation. Due to heavy regulatory pressure the prices of sugar in year 2006-07 remained consistent Rs.30.00 through out.

Believe it or not, sugar industry in Pakistan operates without any definite policy framework. The industry, which is the second largest after textile industry and has a direct bearing on life of millions of farm workers and rural population, is at the mercy of those who hardly understand industry mechanics. They (the decision makers) are very sensitive to any increase in sugar price but are least bothered about spending millions of dollars on ill-timed import of sugar. Another lobby wishes to protect sugarcane growers by simply increasing its (sugarcane) support price but resist any increase in sale price of finished product. It seems disgusting if one compares the increase in flour and sugar price during last five years. The hike in support price of wheat has translated into a huge increase in retail price of flour — the basic food item for millions of people. Whereas, efforts were made to resist increase in sugar price despite the fact that the component of sugar in total house expenditure is very small — rather insignificant. Therefore, there should not be this over-sensitivity towards sugar price.

Challenges for the Sugar Industry in Pakistan

The result of lack of policy framework has been responsible for financial turmoil and economic distress for sugar industry during the past twenty years in succession. The millers faced problems whether there was a shortfall in sugarcane supply or surplus production of sugar. The dilemma of sugar industry is a very high component of raw material (sugarcane) cost. In addition to this, other costs, i.e. taxes, operating expenses, depreciation and financial cost do not allow any scope for economies of scale. Low level of capacity utilization (around 45%) and cost/price disequilibrium in domestic and export markets are other impediments.

Sugar being one of essential commodity has always been prone to regulatory pressures in price fixation, thereby had become a nonprofit able product for the sugar mills. The only window of opportunity that can convert sugar into a profitable product is through marketing sugar under a brand making sugar more hygienic, convenient, and status symbol for the customers.

Non branded sugar dominates the sugar market in Pakistan; however there are few international/local brands available offering different sugar variants like brown sugar, sugar cubs, and sugar sashay for coffee/tea. Brand sugar in Pakistan holds 10% market share of the total sugar market, but the existing brands have failed to achieve the desired positioning where they could justify valid reasons for the customers to buy branded sugar. The real challenge for the sugar industry in Pakistan is to create brand awareness of branded sugar and the additional values associated with it once offered in packed form.

Marketing Plan

Executive summary

Current Marketing Situation

AlAbbas sugar mills limited is well known company in sugar industry of Pakistan, Core business of the company is to market non branded sugar in domestic market exporting ethanol and production of fiber boards using byproduct of sugarcane. Company is looking to explore the under developed market of branded sugar in Pakistan by launching branded sugar with an adequate product line. Company is viewing the partial success of pioneer brands (SUGREETA,SUKRAAL) by Dewan and Shakar Gunj sugar mills as an opportunity by repositioning of branded sugar in the market. The estimated size of branded sugar in Pakistan is approx 0.395 Million tones, with 50% expected growth rate within 4years. To gain market share in this growth friendly environment AlAbass sugar must reposition branded sugar and must carefully target specific market segment.

Market Description

AlAbass sugar market consists of consumers and business users who are hygiene and status conscious. These quality conscious customers need premier quality of sugar in a convenient packaging exactly customized according to their eventual needs. Specific segment being targeted during the first year include Status conscious Housewives, High profile corporate office cafeterias, five star hotels/restaurants, and special events like marriages ceremonies etc. Table 1.2 shows how AlAbass sugar addresses the needs of targeted consumer and business segments.

Purchasers of AlAbass sugar can choose from three sugar variants based on different usages of sugar. Status conscious housewives can choose easily castor sugar for baking, Presentable brown & white sugar sashays for special events, and hygienically packed granule sugar cubes for general consumption. The pioneers of branded sugar in Pakistan so for couldn’t generate perception of hygiene, convenience and lifestyle associated with their brands.

Tab 1.2

Targeted Segment Customer needs Corresponding feature/benefit

Status conscious housewives

Life Style

Hygiene

Convenient packaging

Well refined white/brown sugar available in stylish sashays designed for special events like tea parties etc,

Special Leak proof Polythene packaging ensures hygiene.

Sugar variants available in cubes, sashays and castor sugar offers convenience.

Status conscious Brand equity

High Profile Corporate office cafeterias

Style

Quality

Sugar sashays are specifically designed for coffee/sugar.

Premier quality sugar available in sophisticated packaging.

Five Star Hotels/Restaurants Value addition

Quality

Strong Brand image will add value to the products/services

Premier quality sugar available in sophisticated packaging

Product Review

Our product AlAbbas Sugar available in three sugar variants offers following unique features:-

Exclusive Product customization; sashays for special events, Castor sugar for baking and granule sugar cubes for general consumption.

Highly sophisticated leak proof polythene packaging which ensures hygiene. Primer refined sugar which ensures quality.

First year sales revenues are projected to be Rs.6Bn based on sales of 0.1 Million tones of sugar at whole sale prices as under:-

1. Castor Sugar 1 kg Pack Rs.60/-2. Castor Sugar 5 kg Pack Rs.250/-3. Brown/While sugar sashay pack 500g Rs.40/-4. Brown/While sugar sashay jumbo pack 2000g Rs.145/-5. Granule sugar cubes Pack 500g Rs.35/-6. Granule sugar cubes Pack 1000g Rs.70/-

Competitive Review

Existing market for branded sugar revolves around two local brands (SUKRAAL & SUGREETA) and few international brands. International brands due to high profit margins can afford to stay in Pakistan market with low sales volume, whereas due to ineffective brand positioning survival of local brands in the domestic market is becoming a challenge. Key competitors are as under and product pricing is shown in table 1.4:-

1. Silver Spoon. It is a UK based international brand with sufficient sugar variants including sugar cubes, sashays of white & brown sugar, castor sugar and glucose free sweeteners. The brand is being marketed in all Metros of Pakistan and is available at all super stores but the brand awareness is restricted to limited masses.

2. ZAID. It is a Gulf based international brand with a product line limited to Sugar cubes only. The brand is however available at all super stores of the Metros of Pakistan with the brand awareness restricted to limited masses.

3. Mother choice. A local brand by Roosmor Pvt Limited only marketing castor sugar and availability of the product is restricted to Karachi only capturing a niche.

4. SUKRAAL It is a local brand by Shakar-Gujh sugar mills with sufficient sugar variants including sugar cubes and sashays of white & brown sugar.. The brand is being marketed in all Metros of Pakistan and is available at all super stores with fair brand awareness among the targeted masses. This brand captures the maximum market share of the branded sugar.

5. SUGAREETA. It is a local brand by Dewan sugar mills product line restricted to granule sugar offered in a simple polythene packet. The brand is being marketed in all Metros of Pakistan and is available at all super stores with fair brand awareness among the targeted masses. This brand captures the second largest market share of the branded sugar.

Table 1.4

Key Competitors and their Product pricing.

Brand Company Variants PriceSilver Spoon England Sugar Cubes 500g pack Rs.145

Brown Sugar Sashay 500g pack Rs.155White Sugar Sashay 500g pack Rs.100

ZAID Farooque Group KSA Sugar cubes 500g pack Rs.75Mother care Roosmor Pakistan Castor Sugar packet 300g Rs.48SUKRAAL Shakar-Gujh sugar mills Brown Sugar Sashay 500g pack Rs.50

Sugar cubes 500g pack Rs.45SUGAREETA Dewan Sugar Mills White granule Sugar 1 kg Rs.36

Distribution Review

Alabbas Sugar products will be distributed through a network of super store and non super store retailers, five star hotel/restaurants in the Metros cities of Pakistan. Among the most important channel partner being contracted are:-

1. Super Stores. Agha’s, EBCO, DMart, Macros are few Superstores who will keep our products.

2. Haji Ghani & Co. The largest whole seller of sugar in Pakistan will ensure delivery of our product to all non super stores in metro cities.

3. Five Star Hotels/Restaurants and Airblue. JS Hotels, Café Barbara and Airblue due to their strategic alliance will consume our products on special discount rates.

SWOT Analysis

Alabbas sugar has several powerful strengths like in-house production of raw sugar on which to build, but our major weakness is lack of brand awareness and image. The major opportunity is growing demand for branded sugar and benefit associated with hygienically and conveniently packed sugar. We also face the threat of expected competition and downward pressure on pricing by the regulatory and government interventions.

Strengths

Alabbas sugar can build on three important strengths:-

Hygiene. Alabbas sugar offers sugar in a highly sophisticated polythene packaging, ensuring delivery of premium quality sugar to the consumers free of environmental impurities.

Convenience Alabbas sugar offers a wide range of sugar variants exactly designed to address the different usage of sugar by different consumers, occasions and baking activities.

Status symbol Hygiene, convenience, quality sugar and high price associated with the additional values will create status difference.

In-house Production. Alabbas has total capacity of producing ton of sugar per year, so we will be self-sufficient in producing sugar.

Weaknesses.

Alabbas sugar has learnt from the success and failures of the existing competitors, nonetheless we have two main weaknesses.

Lack of brand awareness. As a start up Alabbas sugar has not yet established a brand or image in the marketplace, whereas SUGREETA and SUKRAAL have fair satisfactory brand recognition. This is the area which we will address with media campaign and trade promotions.

Poor brand positioning. Poor brand positioning by the pioneers has tarnish the image of branded sugar. To nullify this staining effect massive advertising will required which may reduce profit margins.

Opportunities.

Alabbas sugar can take advantage of three major market opportunities.

Increase demand for branded sugar. The market for branded sugar is projected to grow faster than the market of non branded open sugar. More prospects are seeing utilizing hygienically packed sugar exactly design according to diverse needs, which may become a status symbol for the targeted market. Appropriate positioning may influence other segments of the market to use the product being a status symbol.

Level of competition. Barely competitive market with only two major competitors creates low competition thereby provides excellent room for innovation, product promotion taking market share.

New Concept. Branded sugar is new concept in Pakistan if promoted and marketed well can fetch great profit margin for AlAbbas sugar mills.

Threats.

We may face three major threats at introductory phase of the AlAbbas sugar.

Downward Pressure on Sugar Pricing by Regulatory authorizes. Although there is no as such a price restriction on branded sugar items, however regulatory pressure by government against price escalation of non branded open sugar may influence sales of our product.

Expected competition. Keeping in view the product life cycle branded sugar in Pakistan is new concept and level of competition is very low, however in future the expected growth may invite tough competition. We must have contingency plans to keep the sales growing by adding new features, targeting additional segments and adjustments in prices.

Objectives and issues. We have set aggressive but achievable objectives for the first and second years of the market entry.

First year Objectives

During the AlAbbas sugar’s initial year on the market, we are aiming for a 10 percent share of Pakistan branded sugar market through gross sales of 100 Millions.

Second year Objectives

Our second year objectives are to achieve a 15 percent of share based on Rs.150 Millions and to achieve break-even early in this period.

Issues

One major issue is our ability to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, health consciousness and values of status symbol. We must measure awareness and response so we can adjust our marketing efforts if necessary.

Marketing Strategy

AlAbbas sugar’s marketing strategy is based on a positioning of product differentiation. Our primary consumer target Upper income housewives who need premium quality of sugar in a convenient sashay and jar packaging and its usage can become status symbol.

Our secondary consumer target is upper income working singles, students living in hostels who need instant solutions for tea/coffee making.

Our primary business target is Five star hotels/restaurant and High profile Corporate office cafeterias in Metro cities of Pakistan that want to entertain their value guests with superior quality eatables. Alabbas Sugar will fulfill this requirement by providing Hygiene and convenience with unique style.

Positioning

Using product differentiation, we are positioning the AlAbbas sugar as premium quality sugar available in hygienic packing with wide range of sugar variants. The marketing strategy will focus on blended sugar in hygienic packing as main feature differentiating AlAbbas Sugar.

Product Strategy

AlAbbas sugar including all the features described in the earlier product review section, will be in three variants (1) White/Brown Sugar sashays pack (2) Castor sugar in Jar (3) Granule sugar cubes pack. Building the AlAbbas brand is integral part of our product strategy. The brand, ingredients and logo will be displayed product and its packaging, and reinforced by its prominence in the introductory market campaign.

Pricing Strategy

AlAbbas sugar will be offer in three sugar varients with under mentioned prices.

Product s Wholesale price Retail Pricce

1. Castor Sugar 1 kg Pack Rs.60/- Rs.70/-2. Castor Sugar 5 kg Pack Rs.250/- Rs.300/-3. Brown/While sugar sashay pack 500g Rs.40/- Rs.50/-4. Brown/While sugar sashay jumbo pack 2000g Rs.145/- Rs.200/-5. Granule sugar cubes Pack 500g Rs.50/- Rs.60/-6. Granule sugar cubes Pack 1000g Rs.80/- Rs.100

These prices reflect a strategy of (1) attracting desirable channel partners and (2) taking market share from SUKRAAL & SUGREETA.

Distribution Strategy

Our channel strategy is to use selective distribution to have AlAbbass Sugar to sold through well-known stores in Metro cities of Pakistan. During the first year, we will add channel partners until we have coverage in superstores. We will also arrange special trade terms for retailers that place volume order.

Marketing Communication Strategy

By integrating all the messages in all media, we will reinforce the brand name and the main points of product differentiation, especially our exclusive hygienic sugar in convenient packaging concept. Research about media consumption pattern will help our adverting agency chose appropriate media and timing to reach prospects before and during product introduction. Thereafter, advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also coordinate public relations efforts to build the AlAbaas brand and support the differentiation message. To attract market attention and encourage purchasing, we will articulate hygienic sugar concept in the minds of targeted market. To attract, retain and motivate channels partners for push strategy, we will use trade sales promotions and personal selling to channel partners.