mitchell's fruit farms pvt. ltd. virtual university of pakistan internship report

Mitchell’s Fruit Farms Limited

Name of Internee: Rashid MehmoodVU ID: mc080203478Session: Fall 2009Submission Date: 04th February, 2010.Mobile: 0333-8018756e-mail: [email protected]

Virtual University of Pakistan

mailto:[email protected]

DedicatedTo The Holy Prophet Hazrat Muhammad

(P.B.U.H.)

&

My Beloved Mother who encourages me

in the every walk of life.

Acknowledgements

First of all, I am thankful to almighty Allah who made me able to complete my internship and

internship report successfully.

I am also thankful to Mr. Asif Ali Sohna who helped me in getting this opportunity to have an

experience in a reputed organization and groom myself for the future professional

responsibilities.

I shall also like to wish to acknowledge and show my deep gratitude to my respective instructor

(mkti619) of Virtual University of Pakistan who guided me whenever I felt need of his guideline.

Executive summary

Mitchell’s Fruit Farms is the oldest company in the Pakistan and is listed in Lahore, Karachi, and

Islamabad Stock Exchanges. Company makes grocery and confectionary products and sells them

throughout the Pakistan. Company is running its operations usefully. Mitchell’s produces all the

products with fruits growing from its own gardens. Company is being operated by the board of

directors. It has a great competitive edge on its competitors due to its own growing fruit farms at

Renala Khurd. A head office of the company is set up in Lahore. To control the sales activities,

all the market of Pakistan has divided in three regions named Central, South, and North.

Company is working successfully and almost takes more market share as compare to its

competitors.

No. Title Page No.

1 Acknowledgements

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2 Executive Summary

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6

3 Brief History

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4 Organizational Structure

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12

5 Plan of Internship Program

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17

6 Training Program

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7 Structure of Marketing Department

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27

8 Function of Marketing Department

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28

9 Structure of Sales Department

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10 Function of Sales Department

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11 Customers Service Department 38

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12 Critical Analysis

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13 SWOT Analysis

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14 Conclusion

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15 Recommendations-------------------------------------------------

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16 References

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Introduction to Mitchell’s Fruit Farms Ltd INTRODUCTION

Mitchell's Fruit Farms Limited is a public company incorporated in Pakistan and listed on

Lahore, Karachi, and Islamabad Stock Exchanges. Mitchell's Fruit Farms Limited is the oldest

food company in Pakistan. It is principally engaged in the manufacture and sale of various farm

and confectionery products. Since starting its operations in 1933, the Company has gone from

strength to strength, and its wide variety of products has inundated breakfast tables with farm-

fresh consumables, straight from its orchards in Renala Khurd - products of a high standard,

enriching the lives of millions of people with all the goodness of nature for a healthy lifestyle.

Today the Mitchell’s family continues to grow, reaching more and more households worldwide

with an ever-increasing array of farm-fresh products ranging from thirst-quenching Squashes &

Syrups; fruity Jams, Jellies and Marmalade; rich Tomato Ketchup & savory Sauces; tasty

Pickles; refreshingly nutritious Canned Fruits & Vegetables; and a wholesome assortment of

Candies & Chocolate from its wide range of confectionery products.

HISTORY

Francis J. Mitchell arrived in Bombay from Scotland at the end of World War I. He had been

invited by his brother who was already established in North Western India as contractor to the

government for construction of the railway network. At that time, an opportunity came to his

way in the form of the emerging irrigation system being laid out in the canal colony districts of

West Punjab. He was successful in obtaining the lease of 720 acres of agricultural land in the

Montgomery (Later Sahiwal but now it is in Okara District premises) district. He initiated the

business of growing grapes for eventual sale as dried raisins and sent his younger son Richard to

Australia for training at Mildura which was well known as a center of specialization in the field

of horticulture.

The Company, with Francis Mitchell as its Governing Director and his two sons Leonard and

Richard as Directors, was incorporated in 1933 and given the name Indian Mildura Fruit Farms

Ltd. The North Western Railway had opened to traffic a few years before the acquisition of the

land by the Mitchell family. Francis Mitchell was asked by the railway authorities to propose a

name for the adjoining station. Hence the word "Kissan" which subsequently became a familiar

brand name.

As a sequel to Independence in 1947, Indian Mildura Fruit Farms Limited lost nearly 75% of its

Indian market. The company's name was changed to "Mitchell's Fruit Farms (Pvt.) Ltd." and the

brand name "MITCHELL'S" became the exclusive property of the Pakistani company. Likewise,

the Indian company acquired exclusive use of the "KISSAN" brand name. Francis Mitchell died

in 1933 and his elder son, Leonard, became Chairman. After his brother's tragic death in an air

accident, Richard took over the chairmanship in 1949 and continued in this capacity until his

death in 1987. The family sold its shares gradually, having inducted Pakistani shareholders in

1957, and retired to Eastbourne, U.K., in 1959. Richard's wife, Betty, retained her links with the

Company in the capacity of Director until 1991. She died in 1995.

Product Lines and Brand Portfolio

The Company has well known brand name with loyal followings in grocery products. The

company markets its product under the one brand name “Mitchell’s”; this branding strategy

further disseminates the company’s recognition among consumer and enables the company to

frequently introduce new products with little expenses on brand recognition. From the very

onset, Mitchell’s makes efforts to extend its products’ length & breadth by introducing new

varieties of food products used in breakfast, dinner and other servings. Recently, the company

launched three new variants of fruit juices and four new products in the confectionery category.

Cumulatively, the company offers 140 products in nine categories catering to the middle to upper

class. The product portfolio of the company ranges from fruit juices, squashes, tomato ketchup &

sauces, pickles, canned fruits & vegetables, jams & jellies, candies, toffees, chocolates and

drinking water. Surprisingly, despite the fact that the company offers 32 confectionery products

out of a total 140 products, confectionery product lines constitute 42% of the total gross sales

revenue on the back of higher turn-over than groceries items.

Strategies of Branding

Mitchell’s is using consumer and trade promotion but mainly focusing on trade promotions. In

Lahore, the retailer’s benefit is 12+1, it means Mitchell’s gives one free bottle to its retailer on

the purchase of 12 bottles but on the other side, in Karachi, the trade promotion policy is 24 + 3

i.e. on the purchase of 24 bottles Mitchell’s gives 3 bottles to its retailers. Their unique selling

proposition is quality. They never compromise on the quality. Even if they got any complain

then they immediately replace it.

Mitchell’s believes that success of the organization lies in the satisfaction of its customers.

Therefore Mitchell’s has always given first priority to its customer’s feed back and this they do

by the following ways:

Thorough questionnaire feed back forms

Thorough shop keepers

Through ISO procedures (CPA, Corrective and Preventive Actions)

The feedbacks and opinions of the customers are very useful for them and besides this; they

study the feedback and try to implement that accordingly.

List of Main Clients

Institutional Clients

Mitchell’s has successfully catered the demands of its prestigious clients such as the Pakistan

International Airlines (PIA), leading five star hotels and clubs, Utility Stores Corporation,

Canteen Stores Department, main stores and reputed restaurants in major cities.

Foreign Licensees

Mitchell’s was also given proprietary rights by L. Rose and Company Ltd. of England in 1946 to

become the sole manufacturer and distributor of their world famous Rose’s brand of Lime Juice

Cordial and Lime Marmalade in Pakistan and Afghanistan.

Main Competitors

Company: Shezan

Company: National

Company: Haleeb food limited Pakistan

Mitchell’s

Registered Office & Head office:

39-A, D-1, Gulberg III, Lahore, Pakistan

Phone: 042-35872392-96

Fax: 043-35872398

E-mail: [email protected]

Website: www.mitchells.com.pk

Factory & Farms:

Renala Khurad,

District Okara, Pakistan

Phone: 044-2622908, 2635907-8

Fax: 044-2621416


Regional Sales Office (North)

H. No. 22, Street 4, Main Park Road,

Gulshan-e-Al-Huda, Chatthah Bukhtawar, Islamabad

Phone: 051-2240020-21

Fax: 051-2240023


Regional Sales Office (Central)

14—Air Line Housing Society, Khayaban-e-Jinnah,

Near Shaukat Khanum Hospital, Lahore

Phone: 042-35181250

Fax: 042-35181240


Regional Sales Office (South)

Mehran VIP II, Ground Floor,

Plot 18/3, Dr. Dawood Pota Road, Karachi

Phone: 021-5212112, 5212712, and 5219675, Fax: 021-5673588






http://www.mitchells.com.pk/


9- Organizational Structure

COMPANY’S IFORMATION

Hierarchy of the Mitchell’s Fruit Farms Ltd

Legends:

No. Title Abbreviations

1 CFO Chief Financial Officer

2 SCM Supply Chain Manager

3 HRM Human Resources Manager

4 RDCM Research Development & Control Manager


5 NSM National Sales Manager

6 RSM (S) Regional Sales Manager (South)

7 RSM (N) Regional Sales Manager (North)

8 SM Systems Manager

9 GBM Group Brand Manager

10 BMKA Business Manager Key Accounts

11 AMPS Asstt. Manager Planning & Stores

12 AMTS Asstt. Manager Tech. Services

13 AM Accounts Manager

14 AM (QC) Assistant Manager (Quality Control)

15 PM Production Manager

16 ASM (S) Assistant Sales Manager (South)


17 AM (SC) Assistant Manager (Supply Chain)

18 AM (S) Assistant Manager (Systems)

19 AM (DP) Assistant Manager (Development & Projects)

20 AMIA Assistant Manager (Internal Audit)

21 ASM(C) Assistant Sales Manager (Central)

22 ABM (H) Assistant Brand Manager (Hamid)

23 ABM (W) Assistant Brand Manager (Wasil)

24 PE Production Executive

25 AM (F) Assistant Manager (Finance)

26 MTS (N/ C) Management Trainee Sales (North/ Central)

27 NE Network Executive

28 AM (HR) Asstt. Manager (Human Resources)

29 FCA Factory Cost Accountant


30 AE (N/S/C) Accounts Executive (North / South / Central)

31 ES Executive Secretary

32 MT (SC) Management Trainee (Supply Chain)

Employees:

Total number of permanent employees of Mitchell’s about 350 except of daily wages or seasonal

employees.

Hierarchy Details:

The board of governors governs Mitchell’s fruit farm governs the Mitchell’s. All the operational

responsibilities, decisions about operations, productions, employees etc are done by the CEO /

MD. CEO is fully responsible and authorized independently about the organization. Advisor

plays a role of a communicator between the CEO and the board of governors. Board of

governors takes decisions related to top-level matters like investment etc. under the CEO there

are different department. CEO controls these departments through their Heads namely called

HOD i.e. Head of Department.

Departments

Finance Department:

It is head by the CFO (Chief Financial Officer). All cash related matters are done through the

finance department. Through AM (Accounts Manager), AMF (Assistant Manager Finance), SM

(System Manager), and with their assistants and clerical staff, CFO runs the department and

make ensure the right and timely release of money. Finance Department plays a vital role in the

organizations to meat the goals of the organization.

Marketing Department

We know in marketing and sales department, extrovert people are required. Because

marketing personnel have to interact with their surroundings. Similarly the physical

characteristics also count most for these jobs. Marketing Department is head by the MM

(Marketing Manager). Through the middle, and lower level management, MM performs

his duty well. We also know that marketing is a backbone for an organization. In

marketing department, matters related to market, sales are decided. We also know that

marketing is a tough job. In business, knowledge is power. Marketing department is well

known of this statement and working properly. Marketing department controls the

activities of the regional sales offices of the country.

Supply Chain Management:

Supply chain department is responsible for the matters related to supply. It works in the factory.

The head of supply chain department, Supply Chain Manager, works through its subordinates.

Chain of Command:

At Mitchell’s, CEO is final authority. All HODs are interconnected with one another.

Communication in the organization is up-ward and downward. It ensures quality; satisfactions

among the employees at all level, timely gain of targets etc.

Span of Control:

In Mitchell’s, CEO handles all the matters related to the organizations. We can see it in the

hierarchy about it. CEO handles all the matters through the head of the departments. Heads of the

departments take instructions from the CEO and then go to their departments and take the work

from the department employees. There are many middle-level, and low-level managers in each

department. All the structured and unstructured problems are solved within the department.

Those problems which may cause in getting objectives, are informed upward i.e. low-level to

middle-level to HOD. HODs forward this to the CEO and take the instructions. In major issues

CEO calls the meeting of HODs, technical, and non-technical staff to resolve the problem.

Mitchell’s Fruit Farms Ltd.

Regional Sales Office (Central),

& Factory, Renala Khurd

My internship was at Regional Sales Office (Central), & at Factory. As I have mentioned in my

report that Mitchell’s has divided the whole Pakistan in three marketing regions named south,

north, and central. My internship was at HRD (Human Resource Department) and sales office

(Central) of the Mitchell’s at Renala Khurd. HR Department deals with the all the employees of

the company as they the customers and market of HR department. HR Department hire, recruits,

and trains the new employees and the existing with the passage of time. Sales department deals

with sales matter. It keeps an eye on the sales of all the marketing regions to meet the target set

by the top management. It ensures the timely supply of the products in all the regions according

to demand and also enforce the regions head i.e. Head of the Region to enhance the sales revenue

of some certain product if it is going to surplus.

Dates of Internship

Starting date of the internship at Mitchell’s: 02 November 2009

End date of the internship: 13 January 2010.

Absent: (For Midterm Exam, Fall 2009) 02 Dec. To 14 Dec. 2009

Names of the departments in which I got training and duration of my training:

Names of the Departments:

1. HRD

2. Sales Department

Duration:

1. HRD 02 Nov. 2009 To 01 Dec. 2009

2. Sales Department 15th Dec. 2009 To 02 January 2010

Training program

I worked in Human Resource Department of the Mitchell’s Fruit Farms Ltd.

Human Resource Department of Mitchell’s Fruit Farms Ltd.

Culture (Internal Environment) of Human Resource Department

Internal environment of an organization plays an important role toward the success or failure of the

organization. Internal culture of Mitchell’s Fruit Farms’ Human Resource department is very friendly

and cooperative. It is a common thing that employees face a lot of problems about their job, task

assign to them, or their domestic matters. During the job, conflict can arise between the parties or

workers. In hour of needs it is necessary to ask their top management for their permission in some

matter or advise to solve a problem. At Mitchell’s Fruit Farms’ Human Resource Department, all

employees of the company are free to coordinate with Assistant manager Human Resource. They can

discuss any mater related to their job and environment of the organization with the assistant manager

without any hesitation and fear.

Customers and Markets

It is known to all of us that Human Resource department deals with people i.e. employees of a

company. And it is people who run a company. Being a department, all employees of the

company are the customers and market of the Human Resource department. Human Resource

department recruit and select those people who are best for the task for which they are being

appointed. They select only those people who can give benefit to the organization. After

selection the people for the jobs, Human Resource trains and develops the employees to achieve

the goals and objectives of the company. It also provides a platform to all employees to discuss

and resolve their problems.

ORGANOGRAM

(HUMAN RESOURCES DEPARTMENT)

JOB ANALYSIS

Process of determining and reporting pertinent

information relating to the nature of a specific job OR

Process of analyzing tasks, duties and responsibilities

related to a specific job

BASIC TERMINOLOGY

H.R ASST.(2NOS)

SecuritySupdt.

Hygiene supervisor

Kissan staff clubC.Marke1Cook 1

Misc. PeonWasherToiler

Security guardsPerm. = 16Tem. = 26

Hygiene workersPerm. = 09C.W = 08J.C = 11

HRM

Time keeper (2NOS)

MICROMOTION:

Simplest unit of work; involve very elementary movement, such as reaching, grasping,

positioning or releasing an object.

ELEMENT:

An aggregation of two or more micro motion; usually thought of as a complete entity, such as

picking up or transporting an object.

TASK:

Consist of one or two element; one of the distinct activity that constitute logical and necessary

steps in the performance of work by an employee. A task is performed whenever human effort,

physical or mental, is expected for a specific purpose.

DUTIES:

One or more tasks performed in carrying out job responsibilities

RESPONSIBILITIES:

Obligation to perform certain tasks and assumes certain duties

POSITION:

Collection of tasks and responsibilities constituting the total work assignment of a single

employee

JOB:

Group of position that are identical with respect to their major or significant tasks and

responsibilities and sufficiently alike to justify their being covered by a single analysis. One or

many persons may be employed in the same job.

MICROMOTION

ELEMENT

TASKS

DUTIES

POSITION

JOBS

OCCUPATION

RESPONSIBILITIES

Product of Job Analysis

Job analysis involves not only analyzing job content but also reporting the result of the analysis.

These results are normally presented in the form of JOB DESCRIPTION and a JOB

SPECIFICATION .

JOB DESCRIPTION

Written synopsis of the nature and requirement of the job

JOB SPECIFICATION

Description of competencies, educational and experience qualifications the incumbent must

process to perform the job.

Job Analysis Methods

Several methods are available for conducting a job analysis. Studies shows that no one method is

best for all situations but rather depends on the specific use of job analysis information.

Some important methods are discussed below.

1. Observation:

Observation is a method of analyzing job that a relatively simple and straightforward. It can be

use independently or in conjunction with other methods of job analysis.

With observation, the person makes the analysis observe the individual or an individual

performing the job and takes pertinent notes describing the work. This information includes such

things as what was done, how it was done, how long it took, what the job environment was like

and what equipment was used.

2. INTERVIEW:

The interview method requires that the persons conducting the job analysis meet with and

interview the jobholder. Usually the interview is held at the job site. Interviews can be either

STRUCTURED or UNSTRUCTURED.

STRUCTURED INTERVIEW:

A structured interview follows a pre-designed format.

UNSTRUCTURED INTERVIEW:

Unstructured interviews have no definite check list or preplanned format; the format develop as

the interview unfold.

DRAWBACK:

The major drawback to the interview method is that is can be extremely time consuming because

of time required to schedule, get to, and actually conduct the interview. This problem is naturally

compounded when several people are interviewed for the same job.

3. QUESTIONNAIRES:

job analysis questionnaire have both objective and open-end questions. The questionnaire

method can obtain information a large number of employees in a relatively short time period.

Hence, questionnaires are used when a large input is needed and time and cost are limiting

factors.

DRAWBACK:

A major disadvantage is the possibility that either the respondent or job analyst will misinterpret

the information. Also, questionnaire can be time-consuming and expensive to develop.

FUNCTIONAL JOB ANALYSIS:

Functional job analysis is a job analysis method developed by the employment and training

administration of department of labor. FJA uses standardized statements and terminology to

describe the content of jobs.

Potential Problems With Job Analysis

In analyzing jobs, certain problems can occur.

1) Top management support is missing:

Top management should at least make it clear to all employees that their full and honest

participation is extremely important to the process. Unfortunately the message is often not

communicated.

2) Only a single means and source to gather data:

There are many methods to gather data but some time when job analyzed through one method

only then accurate information can’t be collected.

3) The job holder and the supervisor do not participate in the design of job analysis

procedure

Too many analyses are planned and implemented by one person who assumes exclusive

responsibility for the project. The jobholder and his or her supervisor should be involved in the

planning of the project.

4) No training or motivation exist for jobholders

Job incumbents are potentially a great source of information about the job. Unfortunately, they

are seldom trained or prepared to generate quality data for a job analysis.

5) Employees are not allowed sufficient time to complete the analysis:

Usually a job analysis is conducted as though it was a crash program, and employee is not given

sufficient time to do a thorough job analysis.

6) Activity may be distorted:

Without proper training and preparation, employees may submit distorted data, either

intentionally or not.

7) Participant fails to critique the job:

Many job analyses do not go beyond the initial phase of reporting what the jobholder currently

does. These data are extremely valuable, but the analysis should not stop here. The job should be

critique to determine whether it is being done correctly or improvement can be made.

Description of the project assigned

In human resource department, I was given a task of writing a report on the role of Human

Resource Department. I wrote a detailed and brief report on the role of Human Resource

Department and presented it to the Assistant Manager, Human Resource Manager of Mitchell’s

Fruit Farms Limited. The summary of the report is as under:

HUMAN RESOURCE DEPARTMENT;

As I have mentioned above about the task assigned to me at Mitchell’s, I

reported to HRM at the given date Mr. Naveed Ahmad Sheikh. In this report I

gave general introduction about Mitchell’s. The different activities which I

observed during my internship are being done by HR is as follow

RECRUITING AND SELECTION

TRAINING AND DEVELOPMENT

PERFORMANCE APPRAISAL

RECRUITING AND SELECTION

First and foremost important function of the HR is Recruiting and Selection.

Whenever any position becomes vacant or some new staff is required in the

organization, Human Resource Department is informed by the department heads.

Then, Human Resource Department advertises it in different print media to

invite a sufficient pool of candidates. After this, test and interview are

conducted by HRM with immediate manager. HRM interviews short listed

candidates and they are evaluated against some specific parameters. And the

candidate is chosen which gets the high marks.

TRAINING AND DEVELOPMENT :

Recent researches in the field of human resource have been proved that training

and development plays a vital role in the progress of the any organization and

investment in this returns back. HRD of the Mitchell’s also understand the

importance of the training and development. Different departments send their

workers name which needs trainings. Then according to that HRD devise a plan

to deliver trainings. Trainers from others organizations are also invited to impart

trainings. During my internship, 5-S training is imparted to different

department’s workers

PERFORMANCE APPRAISAL:

Performance appraisal is being done on yearly basis against some specific parameters for

workers and executives separately. According to this performance appraisal, salary increments

and perks are rewarded to employees. In performance appraisal, behaviors, task outcomes,

improvements potential and training needed is checked. Purpose of the performance appraisal is

carried out to cover the deficiencies.

Structure of the Marketing Department:

Department Hierarchy:

Number of Employees Working In the Marketing Department:

Permanent numbers of employees in the sales department are about 122

National Sales Manager(NSM)

Regional Sales Manager (RSM)






Assistant Sales Manager (ASM) Regional Sales

Office (South)

Assistant Sales Manager(ASM) Regional Sales

Office (Central)

Assistant Sales Manager (ASM) Regional Sales

Office (North)

Lower Level management & Other

Staff


Staff


Staff

Functions of the Marketing department

Segmentation

Mitchell’s segments its products on the socio economic classes focusing on- A, B+ and B.

Target Marketing Strategy

Target market is the set of people whom company target to sell there product. Mitchell’s target

children, house wives, and families and try to develop there promotional campaign according to

this. As they had the first mover advantage they utilized it fully and initially promoted its

products through newspapers, posters radio channels. But they mainly invested there resources in

building there corporate image.

Marketing Mix

“Marketing mix is defined as the set of controllable tactical marketing tools that the firm blends

to produce the response it wants in the target market.”

The marketing mix is also known as the ‘Four Ps’: Product, Price, Place and Promotion.

Product

“Product is anything that can be offered to a market for attention, acquisition, use, or

consumption and that might satisfy a want or a need.”

Quality Standard:

Keeping in view there customer health Mitchell’s has a special quality control department which

is also working to enhance and maintain the quality of its products. Different quality tests are

taken while producing all products to assure the quality. Complete hygiene environment is create

within manufacturing area of Mitchell’s which makes its products completely safe and healthy

product.

PRODUCT IMAGE:

Mitchell’s is enjoying more then 38 percent market share against its competitor which tells the

story of Mitchell’s products image in market.

Price:

Price is the value that customers give up or exchange to obtain a desired product.

This is the most important factor considered while talking about the marketing mix. How

Mitchell’s price there products this is as follow:

Pricing strategy:

When company starts producing its product they use penetrating strategy keeping in view the

competition. This is because to attain most market share. Now company is still following same

strategy to retain market share.

Pricing product:

Right price to product is very difficult. Price plays very important role in the sale of any product.

So this is one of the major issues. Mitchell’s are following quality based pricing out of survival,

profit maximizing, and market share leader pricing. This is because Mitchell’s is market leader

now and they are now just focusing only on the quality of the products so they price according to

the quality of the product.

Geographical price adjustment:

Price of the Mitchell’s remains the same within the Pakistan. There is not price adjustment

within Pakistan.

Competitor pricing:

Usually price is based on the quality of the product but it may vary in some case like if

competitor reduce the price there is the policy of the Mitchell’s that the also reduce the price to

stay in competition. Other wise price is only quality based.

Factor consideration while setting prices:

There are some factors keep under consideration while setting the price of the product some

them are:

1. Consumer buying power.

2. Cost of the product

3. Pricing strategy

4. Advertisement cost.

There are some of the factors which are considered while setting the price of Mitchell’s.

Advertisement cost is one which is not often considered because advertisement varied on

different stages. So this is one which is least considered.

Distribution channels:

“A set of interdependent organizations (intermediaries) involved in the process of making a

product or service available for use or consumption by the consumer or business user.”

About the Mitchell’s they are also using different distribution strategies to make there products

available to every consumer. The information about Mitchell’s distribution strategy and channel

are as fellows:

Product type:

Product type means that company rate there product on the bases of final consumer. There are

different types of product which are as fellows:

1. Confectionary products

2. Grocery product

These are two types of the products. According to company they place their products as

convenience product this is one which easily available with low cost and customer need not to go

different stores to only for the better product.

Nature of distribution:

There are two distribution channels which are:

1. Direct channel.

2. Indirect channel.

Mitchell’s is involved in indirect distribution channel. They are following this method:

Production Intermediaries retailers Final consumer

This is the distribution channels Mitchell’s is using to make there product available to every one.

Distribution policy:

There are also three types of distribution policies which are as fellows:

1. Intensive.

2. Selective.

3. Exclusive.

Intensive distribution means place product to every store and try to address each and every

consumer. Selective means few well known general stores or departmental store are used to

appeal people to there product.

Mitchell’s is using intensive distribution along with selective distribution. It is because they are

try to appeal as many people as possible and through this technique they are being able to

address the most number of people.

Modes for distribution:

There are number of distribution mode like use tracks, rails, air planes, and pipes. But the

company is not involved in any of these. Company is only responsible to send the product to

intermediaries which are then take products to retailer. Company is just do only that they paint

the transmission mode like trucks which the theme of the company which show the product on

the trucks. Modes are also set keeping in keep these things which are fellows:

1. speed

2. Dependability

3. Availability

4. Costs

5. other

Promotion:

Promotion is to promote product through advertisement and some other factors. It not only

included advertisement but also setting target market studying there requirements and develop

product accordingly. What are the promotional activity using by Mitchell’s and how they use

them are as fellow:

Promotional strategy:

In the beginning the company is use push strategy to increase sales by setting low price try to

penetrate but by the time begin the strategy is changed to pull. It is because company now is

being able to attain the greater percentage of sales and now they are just considering to only

retaining this position now.

Promotional Activities:

To promote the sale of the Mitchell’s company is involve in number of activities which are using

ads on TVs placing bill boards and with arrange some sort of concerts and public related

activities like health related programs.

Modes for Advertisement:

Company uses different modes of advertisement to make there message to reach to every one.

Advertisement modes include TV channels, news papers, bill boards, health and safety programs

and by publishing different health and safety related magazines. All these are use to make sure

that they can address all the people they are targeting to. TV channels include all the local most

famous and often watched channels and same is the case of the news papers. Company called

these advertisement modes above the line and below the line. Above the line include TV

channels, cable networks, and exhibition. And below the line contain health and safety programs

and all that magazines.

Structure of Sales Department

Department Hierarchy:

Number of Employees Working In the Sales Department:

Permanent employees working in sales department about 187

Sales operations:

Mitchell’s is working properly in its sales operation around the Pakistan. All the sales of the

Pakistan are handled by the national sales manager (NSM) from the head office. Mitchell’s has 3

major sales offices in the different regions i.e. south, north, and central. Sales offices work

according to sales strategy made by the head office. Regional Offices under the supervision of

National sales office, continually work on its sales strategy, its design, planning and execution to

get the desire results. Mitchell’s offers some time different packages for the customers to

enhance the sales of its products. Some time these offers may differ from region to region on the

basis of sales. National sales office measurement the results of sales data sent by the regional

Sales Department (Head Office)NSM

(National Sales Manager)


RSM(Regional Sales Manager)

Regional Sales Office (North)RSM

(Regional Sales Manager)

Regional Sales Office (South)RSM

(Regional Sales Manager)


ASM(Assistant Sales Manager)

Regional Sales Office (North)ASM

(Assistant Sales Manager)

Regional Sales Office (South)ASM

(Assistant Sales Manager)


Low-Level MangersOther Staff





offices and decide the compensations, or quota for different regions to encourage the customers

to purchase more Mitchell’s products. Sales department ensures the availability of the products

in target market. Some time sales department give some special targets to the regional sales

offices to enhance the sales and gives reward to those who meet the challenges. Mitchell’s is

working well on its sales operations under considering the demographic situation of different

regions. Mitchell’s also offers sales programs to make better its sales operations.

Functions of the Sales Department

Sales Methodology:

Mitchell’s uses simple price for its all products. Mitchell’s charges those prices which are

challenging for its competitors. But in price matter, Mitchell’s do not compromise on the quality

of the products to compete its competitors. There is only one price around the country for every

customer without discrimination of area whatever it is rural, urban, or the remotest area of the

country.

Type of Selling:

Mitchell’s sells its products to its final customers through its intermediaries. There is no direct,

door to door, or personal selling in Mitchell’s. All the sales are done through its sales

distributors. At some other level like famous hotels, restaurants, club, Mitchell’s sells its

products directly.

Sales Returns Procedures:

Mitchell’s take back it’s those products which proved bad, un-hygiene etc. through its

intermediaries. Mitchell’s takes responsibility if any of the products found bad.

Customer Services Department:

Mitchell’s continue keeps in touch with customers. It is in touch through media i.e. print and

electronic. We know that Mitchell’s sells its products through its distributions channels and there

is no direct selling in Mitchell’s. This relation is based upon the feed back comes through its

distributions channel.

Techniques of retaining customers:

Mitchell’s keeps in touch with its customers. It tries to retain its customers. Different

promotional activities are performed to retain the customers. Samuel Butler says that "Any

fool can paint a picture but it takes a wise man to be able to sell it." There are three

different techniques are being used by the Mitchell’s.

Effective Communications:

Developing effective and consistent two-way communication skills is the first component in

establishing and maintaining a selling edge and developing long-term customer relationships. It

is accomplished through practice and constant exchange of thoughts, feelings, and reactions with

those customers, clients or prospects that have a distinct need and ability to acquire the products

or services that you provide. Mitchell’s is acting upon well in this and getting its targets in the

competitive market of business.

Achievement Drive:

Mitchell’s management knows that a right attitude, a strong overpowering will to succeed is the

second key to achieving consistent sales. Studies show that top sales people from every field of

endeavor have more desire to achieve than the vast majority of their peers. They also gain

personal satisfaction in helping other people make sound buying decisions. This gives them the

energy, stamina, enthusiasm, and compelling motivation to attain the edge that produces higher

rates of sales and high quality customer service levels.

To successfully sell the products, Mitchell’s has developed a strong desire to succeed.

Daily Planning and Personal Management:

“The mere possession of selling techniques does little to insure success. It is the person's attitude

and work habits that are important.” (Dr. Richard H. Buskirk).

The third concept to be mastered, if you are to achieve success in selling, lies in your ability to

schedule your time wisely and work effectively during the periods you allocate to your sales

promotional activities. Mitchell’s is successful is successfully taking measurement of its sales on

the daily basis. It takes report from its regional offices on the daily basis and evaluates the

performance of the regions and its sales.

Ways of handling different kinds of customers:

Every organization has difficult customers or customers that we perceive to

be difficult. Every organization wishes to turn these difficult customers into

potentially good customers instead of turning them away. Mitchell’s as we

know that is an indirect selling company. Mostly problems related to

customers are come from the shop keepers or wholesalers. Mitchell’s

handle these problems through using following techniques:

Remained calm and professional:

The team of Mitchell’s who handles problems face to the customers remain

calm and professional while talking to the customer regardless of their

behavior.

Be friendly:

Although this will probably be the toughest thing to do while attending some rude customers,

Mitchell’s staff remains calm and friendly.

Complainers:

These are probably the most common type of ‘challenging’ customers. Mitchell’s tries its best to

solve the complaints of the complainers. Regardless of whether the complaint is valid or not,

Mitchell’s maintain an attitude of service.

Critical Analysis:

If we look at the mission statement of the Mitchell’s, we will find that Mitchell’s enters in the

market with the aim of to serve quality product to the customer, attracting and retaining

outstanding people, with promise to enhance its services to the customers. To be a company

which combines its people, technology, management systems, and market opportunities to

achieve profitable growth while providing fair returns to its investors. As far as I learned

Mitchell’s is working and striving for getting upon its mission and vision statement. It is also

known to us that Mitchell’s is getting the biggest market share in Pakistan. But there is a need of

more concentration on the task due to competitors. If we look at the media i.e. print or electronic,

we will find a lack of advertisement as compare to other competitors of same products which

Mitchell’s produce. There is a lack of other publicity of Mitchell’s products. Mostly people

thinks that Mitchell’s only produce Toffees. It is wrong. This perception is due to failure of

advertisement. There is weak system of supply in the market I felt in Mitchell’s. The distributors

of different districts / areas are working in the country. But, if we visit the remote areas, we will

find the unavailability of Mitchell’s products. It is due to weakness of supply chain management.

SWOT

SWOT Analysis Of Mitchell’s Strengths

Fully integrated operations Having its own growing and

processing facilities Modern high-volume industrial

equipment Professional management and a

trained workforce A smooth distribution system with

nationwide coverage Right products, quality and

reliability. Management is committed and

confident

Weakness

Customer lists not tested Some gaps in range for certain sectors Customer service staff needs training More budget needed for Human

Resource Development

Opportunities Mitchell’s can continue its dominance

as the innovator Can maintain its position as market

leader Can also continue to be a trend setter International and domestic market

expansion Introducing new verities of food

products Local competitors have poor products End-users respond to new ideas Can surprise competitors

Threats Political instability International Financial crises Challenge of work force diversity Changing technology and concept Legislation could impact Retention of key staff critical Possible negative publicity Market demand very seasonal

CONCLUSION

During my internship at Mitchell’s, I have found that Mitchell’s is sometimes proactive and

some time it adopts reactive approach. Mitchell’s is very much conscious and careful about its

sales and about the customer level satisfaction and tries to maintain a same graph of satisfaction

level and gives customer a quality, fresh farm products direct from their own farms. Mitchell’s is

very much concerned about its SWOT analysis and keeping a closer eye on every action it can

take for the better of its products. Mitchell’s management deals with developing a marketing mix

to serve a designated market. Their main focus is on the strategies at SBU level where Mitchell’s

make their strategies considering three forces:

Customer

Competition

Corporation

Mitchell’s is concerned about the external information pertains social, economic, political and

technological trends and product/market environment. Mitchell’s is also very concerned about

the Corporate Appraisal and for this they keep a closer interact with all the groups of corporate

publics having a stake in the organization. In this context Mitchell’s is very much concerned

about the Financial Position of the company and evaluate this factor very closely for the further

decision making of their products.

Recommendations for Improvement:

Mitchell’s is taking compositing edge in the market due to its own growing farms. Although

Mitchell’s is working well in the market and has proved itself a leader in the food industry, but

there is need of more concentration to make it better than present. There is weakness in the

supply chain system of the Mitchell’s. Management should take fully keep an eye on the supply

of the products in the whole country without discrimination of the rural, urban, or remotest area

of the country. There is also another problem with Mitchell’s and that is its weak advertisement

campaigns in the media i.e. electronic or print. A strong campaign can leads Mitchell’s on more

height in the market as compare to its competitors. We know that Mitchell’s has a competitive

edge on its competitors due to its own growing fresh fruits. Due to this edge, Mitchell’s should

try to enhance its market share through changing or concentrating on its sales methodologies,

price, supply chain, strategies. It should also keep an eye on its competitors. In business, we

know that knowledge is power. Mitchell’s should not loose its power.

References:

Mitchell’s website (www.mitchells.com.pk)

Company’s annual report 2009

HRM Department

Sales Department

Talk with AM HR, and different People during internship.

Internet to define and understand different terms

In structure mkti619@VU

http://www.mitchells.com.pk/

mitchell's fruit farms pvt. ltd. virtual university of pakistan internship report

Documents