Mitchell's Fruit Farms Limited

Mitchell's Fruit Farms Limited or Mitchell's is a Pakistani food

company. It is considered as one of the largest and oldest food
company that has started its operations in 1933 under the name
of Indian Mildura Fruit Farms Limited in the British Indian region
that has now been administered by Pakistan. It was founded by
Francis J. Mitchell. After the independence of Pakistan, its name
was changed to Mitchell's Fruit Farms Limited. It is head quartered
in Lahore, Pakistan while the farms and factory are situated at
Renala Khurd, in Okara District of Punjab, Pakistan.
Mitchells Fruit Farms Limited is a public company incorporated in
Pakistan and listed onLahore, Karachi and Islamabad Stock
Exchanges. Its primary objective is to manufacture and sell
various Farm and Confectionary products
Mitchells is playing a vital role in the Pakistans economy. For the
last two years, the company is receiving The Top 25 Companies
Award. Mitchells has been in the market long before
independence and still enjoys a good repute. This is the evidence
of the companys dedication, trust and commitment to provide
the best quality products in the market. Despite all the odds,
Mitchells is still the Market Leader in Squashes, Preserves,
Sauces and CountLines

Products
Mitchell's produces, squashes, preserved foods (Jams, jellies &
marmalades), fruit drinks, sauces, canned foods, pickles, sugar
confectionery, chocolate bars etc.

Institutional Clients

Mitchells has successfully catered to the demands of its

prestigious clients such as the Pakistan International Airlines (PIA),
leading five star hotels and clubs, Utility Stores Corporation,
Canteens, reputed restaurants in major cities.

DIRECTORS REVIEW
The directors are pleased to submit the un-audited financial
statements of the company for firstquarter ended December 31,
2011.
The results of quarter under review show that the company has
been able to continue growingsteadily. Due to continuing
operational efforts the overall business sustained its momentum.
The companys net sales recorded a growth of 55 % rising from
Rs. 330 million to Rs. 513 million.Exports increased by 33 %
showing a continuous positive trend.
Cost of sales of Rs. 393 million as compared to Rs. 255 million for
corresponding period last yearreflects a proportional increase of
54% in line with increase in net sales. Gross-profit increasedby 60
% from Rs. 75 million to Rs. 120 million. This performance was
helped by our continuousinvestments in marketing activities. The
profit from operations increased by 77 % and with asupport from
reduced financial charges, net profit increased by 121%.
The Board of Directors would like to express their gratitude to all
employees who have workedhard to achieve our common
objectives.

SWOT Analysis:
Strengths:
Mitchells has quite a lot of strengths. There are several products
that give this company a lot of encouragement to stay in the
market and have a competitive edge. The products that are the
strengths of the company are as follows:
1. Jams, jellies and marmalades.
2. Sauces
3. Pickles*
According to the sales manager of the company, all these
products are the main source of revenue and have a very large
margin of growth in future, if they are given some kind of
innovative sense through continuous research and development.
They are termed as the cash cow of the company.
1. Fully integrated operations. The latest technology used
in the factory is highly effective in the production of quality
products. Each item is produced on different machine line
from where it is produced into its final shape. And the latest

2.

3.

4.

5.

6.

packaging machines are also being used for the fast growing
demands.
Having own growing and processing facilities. They
have their own growing farms which is the key source of
supply of fresh and healthy fruits and vegetables with
excellent yield. They also own warehouses and cold storages
to keep the edibles in hygienic places; hence they do not
have to rent the storage facilities. Mitchells has always been
keeping itself abreast with the modern technology and
updating its machinery and equipment with the passage of
time.
Strong and Continuous Research & Development:
Mitchells has most modern laboratories research facilities
where they develop different products and upgrade the
quality of existing range continuous, which keeps their edge
in the market place.
A smooth distribution system with nationwide
coverage. They have distribution chains which are spread
all over the country to increase sales. And they are working
in good and effective way to meet the growing demand of
their products in the market.
Right products, quality and reliability. Mitchells is one
of the leading companies of Pakistan. To maintain its market
position, it maintains its standards according to the changing
environment so that it may be able to compete with the
rivals producing identical products.
Management is committed and confident. As far as the
management is concerned, it is committed to set its goals
and they are determined to achieve the goals they have
planned or designed to achieve. Not only setting goals and
their determination is helpful to them, they are confident in
themselves that they can achieve their targets and goals.

Weaknesses:

1. Customer service staff needs training. The factory staff

has slowed down over a period of time; therefore they need to
be continuously trained through refresher courses, training
sessions and equipped with modern techniques to become
more efficient and professionally dedicated for meeting
challenging demand of production. Therefore a lot emphasis
has to be done on Human Resource Development.
2. More
Budgets
needed
for
Human
Resource
Development. For meeting high demand of human Recourses
development in all the segments including sales and marketing
special budgetary allocations are required to be made in order
to increase sales nationwide. But for the time being the
company has not allocated enough budget in this sector of
growth.
3. Competitors Activities not tested. Due to increase in the
segment new players are fast entering in the market including
influx of imported products. It has been observed that
Mitchells has not kept itself abreast with the demand and
supply of the market place. Therefore they need to do market
study more often to keep a check on the competitors.

Opportunities

1. Mitchells can continue its dominance as the innovator.

The management staff is highly qualified. The famous company
of Pakistan (Mitchells) still has the opportunities and guts to
achieve the same lions share as it once had in the previous
times in the market.
2. Can maintain its position as market leader. Mitchells can
again maintain its position as the market leader because its
still not too late for Mitchells to defeat its rivals due to brand
loyalty of its consumers.
3. Can also continue to be a trend setter. This company can
continue to be the trend setter of the market by keeping an eye

on the changing product priorities of the consumers in the

market.
4. International and domestic market expansion. Mitchells
is still in the position to carry on with the international and
domestic market expansion. The main hindrance for Mitchells
is that it has to face the social, cultural and other changes
almost on daily basis being faced by the country or otherwise
Mitchells cannot become a giant in the market place.
5. Introducing new verities of food products. Another way
for Mitchells to regain its market is by introducing such verities
to the consumer market as never before and according to the
needs of consumers, along with product innovation.
6. End-users response to new ideas. This must be kept in
mind before innovating the products that the consumers may
dislike or even reject any product due to its taste thats
innovation did not meet their requirements.
7. Can surprise competitors. If Mitchells shows its full
potential to achieve its target market, then it may overcome
all the fears of being beaten up by its competitors.

Threats
1. Political instability. Due to the daily changing political
environment, Mitchells has to face losses in millions and even
the company is threatened to close its operations.
2. International Financial crises. Another threat faced by
Mitchells in slow down of growth in the international market
due to economical crisis like is being faced by many leading
multinational companies in the international market. It is as
bad as vipers venom for the firms in the market today.
3. Challenge of work force diversity. The work force accepts
every challenge that comes there way. They can diversify by
this challenge and shift their jobs.

4. Changing technology and concept. Mitchells should take

certain immediate steps so as to survive in the rapidly
changing technology and concept in the market place.
5. Retention of key staff critical. The usefulness of the key
staff is very Important for them to keep. They are like an asset
to the company. And many others may offer higher salaries in
order to make them leave their old job.
6. Possible negative publicity. Rumors of quality issues may
be there in the public and the company may suffer by losing
consumers to buy their products. In order to do so they need to
clear the minds of those customers which have been subjected
to these rumors.
7. Market demand very seasonal. The products demand in the
market depends on seasons. Consumers prefer to purchase the
relative products in their relative seasons and therefore the
sales of the other products drop due to this reason. There is
nothing much they can do about it.

OUR PRODUCT EMPHISIS (PICKLES)

About Pickle :
Knowing consumers eating habits we can guarantee that no meal
is complete without Mitchell's Pickles. Special reference is made
to Hyderabadi Pickles, which are a delicate assortment of fruits
and vegetables matured through natural processes, and carefully
selected spices, made in a truly traditional way and carrying an
authentic homemade flavor. New, mouth watering recipes are
constantly being formulated to complement the existing range.

Target Market:
The target market at the time of launch of these pickles was
up to 60 years of age and the core target was 15-30 years of
age. Today this Pickles is equally popular among all the
section of society and there is no age limit. Hence its
popularity is judged by its consumers, which is continuously
growing.
Segmentation:
They segmented their product on the socio economic classes
focusing on- A, B+ and B.

Marketing Strategy:
As they had the first mover advantage they utilized it fully
and initially promoted squashes by newspapers, posters
radio channels. But they mainly invested their resources in
building their corporate image. They were successful
towards introducing new way and methods of marketing and
creating new trends of advertisements.

Declining Product:
The weakness, as per the sales representative of Mitchell's
Fruit Farms Limited the sales of pickles are decreasing
rapidly and they need to innovate this product in order to
keep it in the market. But the problem arises in innovation
that this product cannot be innovated like others, for
example all flavors have been introduced and none is left
which will suit the title of being a pickle. Although the flavors
can be improved. Its sale is low and its competitor in market
are so many for example Ahmed Foods, National Foods, Shan
foods etc. They are trying their level best to keep the
interest of the consumers alive in the market for their
pickles.

How to enhance sale of pickles:

We can increase the sale of Pickles by change the taste
according to present time likes and have to be better than all
our competitors in market. In addition to the change or

alteration in the taste, we need to change the packaging

which could attract the consumers of other similar product to
switch to Mitchells Pickles.
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