Introduction: Historical Background

1.

INTRODUCTION: i.

HISTORICAL BACKGROUND

Haleeb Foods Pvt. Ltd. started its business in 1984 with the name Chaudhry Dairies Ltd. The plant spreads over 37 acres of land which is situated at 62 kilometers from Lahore District Court, with a capacity to process 80,000 liters of milk per day with a labor force of 150 workers. The production process started in 1985 with UHT (Ultra High Treatment) liquid milk such as an initial product which became very popular in no time. Haleeb’s administrators claim that their plant adopted the latest technology for milk processing and thus it had an edge over other around twenty plants in competition including Milkpak as all other plants were based on obsolete European technology. The idea behind UHT investment was to provide consumers with the best quality of packaged dairy and food products that no other company can produce. About four years later, the company decided to enter a joint venture with Friesl and Frisco Domo (FFD) of Netherlands and continued the activity from November 1989 to December 1991. This joint venture did not last very long because of the change in global strategy of FFD and was amicably dissolved. Haleeb then went on its own till December 1998 till it signed a contract with Candia that is a market leader in France. Under this agreement, the company launched Candia value added liquid milk products all over the nation. The advantage of this agreement that Haleeb took is that Haleeb now has access to the latest technique of production, technical know-how, etc. The major aim was the quality production and that is why Haleeb discarded some of its products with the likelihood of loss in quality. This made the company gain many successes on different frontiers and, now it competes very well with all other multinationals and has an edge over all national companies active in the dairy industry in Pakistan. The important happenings are described below.

1984

Founded as Chaudhry Dairies Limited

1

1987

Started sale of packaged milk under “Haleeb” brand

1989

Established equity partnership with CC Friesland, Netherlands

1991

Discontinued the partnership with Friesland Frico Domo

1998

Entered in franchise agreement with Cedilac, France

2004

Changed corporate name to “Haleeb Foods”

2005

New production facility fully operational at RYK

ii.

SITUATION ANALYSIS

These days, Haleeb Foods Pvt. Ltd. (Formerly CDL Foods Ltd.) is one of those few leading national companies. It collects about six to eight hundred thousands liters of fresh milk everyday from its large number of collection points Located all over Punjab, chills it at the site and then processes it to manufacture different dairy products. The branded products that Haleeb manufactures include standardized milks namely Haleeb, Candia, Dairy Queen, etc. that are ultra heated. It also produces powdered milk namely N’rish. Other than that it produces butter, cream, desi ghee which is animal fat obtained after heating and removal of proteins from milk and lassi drink that is milk left after removal of butter from yogurt. Apart from milk products, Haleeb also produces different kinds of beverages such as fresh fruit juices under the brand name ‘Tropico’, in different flavors such as ‘Mango’, ‘Orange’, ‘Apple’ and ‘Mango and Orange’. The company is not only supplying its products nationwide but also currently exporting its products to Afghanistan, Bangladesh, Europe, America, etc. It exports desi ghee to South Africa, cream, milk and fruit juices to Tajikistan, fruit juices to UK, powdered milk and ghee to Qatar. It is planning to export its products to Canada, Dubai, Uzbekistan etc.

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The Executives of Haleeb Foods claim that the growth rate of Haleeb Foods Pvt. Ltd. is the highest as compared to any other company in Pakistan (Khan, 2004). Its total sales grew immensely in last few years. It has given jobs to around 2200 employees which includes skilled, unskilled and temporaries. Its plant in Lahore runs on 3- shift basis daily in which every shift lasts for 8 hours that means that the plant works 24 hours a day. As the company is making products on large scale, it produces a lot of waste as well which is being disposed off in an efficient way in order to keep the environment healthy and clean as a respect for the National Environment Protection Laws. The company is earning high profits and as a result it is sponsoring the welfare of children as it runs about 600 schools in different parts of the country. Haleeb is also one of the major tax payers of the country and it claims to be very honest in its tax assessments and paying of tax amount set by the government. The major secret of success of the company as HBL claims is the practice of honesty in every field and on all frontiers that are expanding day by day. The company investors and management teams have unanimously decided since the start that there will be no compromise on quality of the products. That is why it subjects milk to strict tests on the basis of which there is a lot of reduction in supply due to rejection which is approximately more then 100,000 liters per day; a big loss daily. The company bears this loss daily instead of selling it in the market because they do not want to compromise on quality. The Company Administration has taken keen interest in refining the environment of its establishments and it developed all of its sites at the highest aesthetic standards. It has a very attractive office at 135-Ferozepur Road, Lahore and a beautiful food processing plant with amazing landscapes 62 kilometers on Multan Road. The plant is not only a production unit but also has a big warehouse, a mosque, a fair price shop and a guest house. It has now commissioned a similar type of a plant with a huge capacity in RahimYar-Khan to serve areas down to Karachi.

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iii.

THE ORGANIZATIONAL SET UP OF HALEEB

The organizational setup was very interesting in which we observed that they had a formal structure being followed for the information to go beyond. As at Haleeb Foods they are using Umbrella branding strategy so they had managers brand wise. The senior management for Haleeb UHT Milk included Mr. Iqbal Jutt as the Senior Brand Manager, Mr. Hassan Wajahat Assistant Brand Manager, and Mr. Ahmer Shahzad. Their major duties are the planning and image building efforts that they can do for their brand. The training of the personnel is done in house at Haleeb institute of Leadership which is done by the HR people and the people from related marketing departments. The functional efficiency is monitored through the sales reports and different survey sessions that are conducted by the company when they feel need of. The Interface efficiency was not that good which in an interview with their employee we came to know that even the coordination between Sales and Marketing team turned out to be a night mare at times.

HFL QAD

R&D

PRODUCTION

MARKETING

MPD

IMPORT & EXPORT

CUSTOMER COMPLAINTS

FINANCE / ACCOUNTING

HUMAN RESOURCE

ADMINISTRATION

TECHNICAL

PERSONNEL DEPARTMENT

SUPPLY CHAIN

SALES

4

ORGANIZATIONAL CHART

The above diagram is of the organizational chart for Haleeb Foods Pvt. Ltd. Thee structure is a flat and a functional structure.

Advantages of a Flat Structure: •

More greater communication between management and workers

•

Better team spirit

•

Less bureaucracy and easier decision making

•

Fewer levels of management which includes benefits such as lower cost as managers are generally paid more than workers.

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iv. LOCATION OF OFFICE REGISTERED AND HEAD OFFICE 135- Ferozepur Road, Lahore- 54600 Phone- (042) 111 135 135 Fax- (042) 7589359 & 7590376 PLANT 62- Km, Lahore- Multan Road, Bhai Pheru Phone- (042) 7511636 (04943) 510874 – 5 FAX- (04943) 510877 E-mail:

[email protected]

REGIONAL SALES OFFICES Regional Office Peshawar 6-C Saddar Road Near Jan’s Bakers Peshawar Cantt. Phone: (091) 279238 Fax: (091) 279563

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Regional Office Rawalpindi Flat No. 15/15, Aftab Plaza Saidpur Road Rawalpindi. Phone: (051) 4426502 Fax: (051) 4426503 Regional Office Multan 20-A, Gulgasht Colony Multan. Phone: (061) 221266 Fax: (061) 530927 Regional Office Sukkur A-39, Sindhi Society Near Airport Road Sukkur. Phone: (071) 31061 Fax: (071) 30679 Regional Office Karachi Wing Song Palace Suite No. 203, 2nd Floor Plot No. 16-17, Block 7 & 8, KCHS Shahrah-e-Faisal, Karachi. Phone & Fax: (021) 4315778

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Regional Office Lahore 135- Ferozepur Road Lahore. Phone: (042) 111 135 135 Fax: (042) 7590376

v. NATURE OF BUSINESS The food industry plays a vital role in supplying of food necessities for the survival of humanity all over the globe. That is basis of installation of plants and factories that process and manufacture dairy raw materials such as milk for manufacturing a large number of dairy products that are very popular and are in business since long. This manufacturing process is very common in the whole world even in the developing countries. Pakistan, since its creation in 1947, was in dire need of different forms of products related to the dairy farming and food industry. This demand paved the way for different multinational and local companies to make investments in food and dairy sector. Nestle is one of the important examples that set up a business related to food industry. Some local companies such as Nurpur, etc, also joined the race to meet this rising demand. Later, many companies came into this business because there was an increased demand in this sector. Hence, companies with different product types were in competition. Thus, they were in business and they diversified the spectrum of their products by inclusion of different types of food brands. The examples are different fruit juices, cheese and butter etc. Haleeb joined the caravan little late in early 1980’s by the name Chaudhary Dairies Ltd. (CDL) and developed at a very high growth rate. Its major flagship brand was the packed ‘Haleeb’ Milk. This brand had phenomenal sales and was very popular among the consumers and thus, it forced the management to rename their company as Haleeb Foods

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Ltd after 2000. The company continued processing of milk to produce a large number of dairy products: •

Haleeb Milk.

•

Candia

•

Dairy Queen

•

N’rish

•

Butter

•

Cream

•

Desi Ghee

•

Lassi drink

Like Nestle Pakistan Ltd, it supplemented its dairy range with the fruit products such as different types of fruit juices, and also combined different fruit flavors with the dairy products and came up with a number of significant products which come in the category of flavored dairy products. The company continued to do a good job with an annual growth rate around and above 25% per annum since last many years and thus is now capable of competing with any other national or multinational company in Pakistan. Building an excellent reputation over the years, Haleeb Foods continues to be at the forefront of product and packaging innovation. By the grace of God, it has achieved market leadership in several food categories with a very strong portfolio, consisting of leading national and international brands – Haleeb, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good Day. Apart from its extensive nationwide distribution networks, Haleeb Foods is also serving several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Haleeb Foods has also introduced a number of unique products previously unknown to the Pakistani market, like Haleeb Labban, delicious traditional lassi (buttermilk)

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prepared with pure thick milk and yogurt, Candia Tea Max, cardamom flavored tea whitener, Candia milk, packed in distinctive food grade plastic bottle, and Haleeb Good Day, 100% pure and natural fruit juice, free of added sugar, artificial flavors and preservatives. All this and more makes Haleeb Foods Pakistan’s number 1 and fastest growing packaged Food Company. As of fiscal 2006, its annual turnover is Rs. 9 Billion.

vi. TYPE OF OWNERSHIP Haleeb is a Private limited company. The private company, as the object of these rules, has the internal characteristics of a partnership and the external characteristics of a corporate body. In addition, shareholders are financially and personally deeply involved in the private company and have no easy exit. These characteristics should be determinative for a private company statute.

vii. NUMBER OF EMPLOYEES Haleeb have more than 3000 employees.

viii. KEY PLAYERS BOARD OF DIRECTORS Ilyas M. Chaudry Suleman Daud Mian Mohammad Amjad Saqib Ali

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Mohammad Imran Amjad Mrs. Nasrin Ilyas Sh.Mohamed Rasheed Mohamed Ishaque Khan COMPANY SECRETARY Salman Z. Siddiqi AUDITORS Hameed Chaudri & Company Chartered Accountants LEGAL ADVISORS Mian Iqbal Hussain Kalanuri

2. MISSION/ VISION/GOALS/ OBJECTIVES MISSION STATEMENT Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value

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VISION STATEMENT Most Innovative and fastest growing food company offering products enjoyed in "every home every day"

COMPANY OBJECTIVES

“To built maximum market share by providing convenience to the consumers in the form of products and make sure that the product is available easily and everywhere”

VALUES Enterprise, Empowerment, Accountability, Trust, Teamwork

3. STRATEGIC EXTERNAL AUDIT i. STEEPLE Analysis No organization exists in a vacuum; the environment within which the firm has to operate will affect the way that strategy is both planned and carried out and changes in the environment is also the most likely reason for making changes in the strategy. Changes in the environment are also the most likely cause of failure of strategic plans. The most carefully calculated strategy would be able to drive the market in the favor of the organization and will maneuver the external environment in the best possible way. Haleeb Foods like all the organizations they also have to face such kind of environment which is very dynamic. Being in the market as a challenger they have to face all the external factors and have to cope up with them accordingly 12

S - Social Factors Haleeb Milk has helped to bring about a change in life style of the Pakistani People by introducing UHT Milk, as the literacy rate is improving and it is resulting in a better awareness of the Haleeb UHT treated milk and is helping them improve their sales and Milk with its basic benefits has helped improve the image and more usage has been seen in the past years. Special awareness Campaigns can also be launched and can help portray a better image of the product in front of the customers. The attitudes of the people are also changing with the passage of time so as a result the usage of open gawala milk is changing and people are opting out the usage of standardized packed milk

T - Technological Factor The type of the technology available within the industry states the competitive environment because creative use of new technology is what often gives firm there competitive advantage. This environment does not change that much quickly but the changes that come are strong enough that can change the way the industry is currently running. Haleeb production process uses UHT (Ultra High Treatment) technology. Haleeb’s administrators claim that their plant adopted the latest technology for milk processing and thus it had an edge over other around twenty plants in competition including Milkpak as all other plants were based on obsolete European technology. The idea behind UHT investment was to provide consumers with the best quality of packaged dairy and food products that no other company can produce.

E - Economical Factor Haleeb Foods is strongly affected by both the Economic and the Demographic environment around and have to keep on taking different steps to respond accordingly. There

is no sales tax on the milk. Hence it is a real plus point. Material supply and

shortages are faced by the company for both Packaging and for the product it, as milk’s 13

production is seasonal and keeps fluctuating and adequate steps are required to be taken in order to keep it working smoothly. Haleeb also don’t charge interest on its products which also makes a huge difference economically.

E - Environmental Factor As, the environment always effect the way strategies are being carried out and implemented. Haleeb Foods like all the organizations they also have to face such kind of environment which is very dynamic. Being in the market as a challenger they have to face all the external factors and have to cope up with them accordingly. Haleeb have the strategies to positively engage the staff in work and boost up their moral. Haleeb have a friendly environmental culture within the organization to make their employees comfortable and to deal with the external problems. There are few seasons in which the availability of milk reduces that effect the production of milk and left Haleeb with fluctuated sales.

P - Political Factor Haleeb foods also abide by the rules formed by the Government and set their strategies that are according to the laws and legislations of the Government they are working under. Haleeb had the monopolistic control over the market when they started selling the Haleeb Milk in the form of Tetra Pack (brick pack), that was for the first time that milk came in that form soon followed by the Nestlé’s Milk Pak which as a multinational rocked the UHT Milk industry of Pakistan. They are not actually bound under any sort of trade agreements. As far as the employment laws are concerned Haleeb foods abides to laws set by the government for trade policies, government policies and completes its responsibilities in a better manner.

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L - Legal Factor Haleeb foods always stand by the rules and legal conditions imposed by the Government and set their strategies that are according to the employment laws and legislations of the Government they are working under. Haleeb always keep its department updated about what is happening in the sector or milk industry, and that will help them to make their strategies accordingly. Haleeb have the legal laws like, Minimum wage, working time, Food stuffs, Haleeb don’t believe in Under 18 working, Occupational/ industrial Training, Environmental regulations, Consumer protection Industry-specific regulations etc.

E - Ethical Factor Haleeb is well renowned company operating in the milk industry since long. And the reason for this is importantly their ethical values. They don’t sale on credit or on interest because they consider it unethical and not according to the law of our religion.

ii.

PORTERS FIVE FORCES MODEL 15

1. THREAT OF NEW ENTRANTS: The average entrepreneur can't come along and start a large food company. The threat of new entrants lies within the food industry itself. Some companies have carved out niche areas in which they underwrite dairy supply. These food companies are fearful of being squeezed out by the big players. Another threat for many food companies is other food services companies entering the market.

• Capital requirements Competing in a new industry requires resources to invest. Production of packed products requires huge investment of financial, human, technical, and marketing resources. At the moment Haleeb have some threats like from new entrant’s olpers milk product of Angro foods.

• Economy of scale 16

Economy of scale determines entry because they force potential competitors either to enter on a large scale bases (a costly and perhaps risky move) or to accept a cost disadvantage. Moreover, new entrants in the pasteurized milk business may encounter scale related barriers not just in the production, but in the advertising marketing, distribution, financing, and raw milk purchasing as well, haleeb achieved its breakeven in 1993.

2. BARGAINING POWER OF SUPPLIERS: The suppliers of food might not pose a big threat, because of the reasons;

• Number of suppliers Raw milk is standard commodity and is available in the open market from a large number of milkmen. If anyone refuses to sell its product then company can buy it from others who are already willing to sell to company.

• Importance of volume to supplier Suppliers also have less leverage to bargain over price because the company is purchasing the large volume of their milk and suppliers don’t have much option to sell milk to others.

3. BARGAINING POWER OF BUYERS:

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The individual doesn't pose much of a threat to the food industry. Large clients have a lot more bargaining power with food companies. Large corporate clients like airlines and retailers pay millions of dollars a year. There are large numbers of distributors, who are buying and distributing the product, so their bargaining power is low and company have leverage to dictate implement its terms and conditions to distributors.

• Backward integration Another reason of low bargaining power is that no buyer/distributor has the resources to start involve in backward integration.

4. AVAILABILITY OF SUBSTITUTES: This one is pretty straight forward, for there are plenty of substitutes in the food industry. Most large food companies offer similar suites of services. Companies focusing on niche areas usually have a competitive advantage, but this advantage depends entirely on the size of the niche and on whether there are any barriers preventing other firms from entering.

5. COMPETITIVE RIVALRY: The food industry is becoming highly competitive. The difference between one Food Company and another is usually not that great. As a result, food industry has become more like a commodity - an area in which the food company with the low cost structure, greater efficiency and better customer service will beat out competitors. Food companies also use higher investment returns and a variety of food investment products to try to lure in customers. In the long run, we're likely to see more consolidation in the food industry.

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Larger companies prefer to take over or merge with other companies rather than spend the money to market and advertise to people. Not only local but attempts by cross border competitors or companies to gain stronger foot hold in each others domestic market boosts the intensity of rivalry, especially when the foreign rivals have lower cost or very attractive products. In case of haleeb so far nestle is the only diverse rival and another player that has just joined the UHT Milk sector is Olpers, no doubt the competition between nestle and haleeb is quite intense both are engaged in consistent homework just to break and attract the customer towards each other but Engro is adding to the competition between the sector.

iii.

BCG Matrix

BOSTON CONSULTING GOUP MATRIX

G R O W T H H R R A T E

H H I G H

L L O O W W

STARS

QUESTION MARK

Dairy

Desserts

CASH COW

DOG

Bev erages

Chilled Dairy

HIGH HIGH

LOW LOW

RELATIVE MARKET SHARE

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The above figure shows the BCG matrix. It is the simplest way to show a company’s portfolio of investment. The different product lines of the company are plotted on the matrix according to the growth rate of the industry and its relative market share.

As per the market share HFL is the second largest company operating in Pakistan in the dairy food sector. It lies in the maturity stage of the product lifecycle. It has the largest production of not only dairy products but also fruits and agricultural products in the country. It has a well equipped production plant delivering quality products to its consumers. As far as the BCG matrix is concerned Haleeb is a Star as it has a high market share and the Industry growth is high as there is a lot of opportunity in this sector and a lot of companies are coming in the dairy industry.

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SWOT Analysis

iv.

Strengths 1) Haleeb has a strong brand image, as it is in the market from such a long period of time (1986). 2) A company with growing sales and profits over the years 3) Major share holder in the food industry of Pakistan 4) A vast distribution network for Urban as well as Rural areas that make sure that the product is easily available everywhere. 5) The nature of the products is good, i.e. Quality products, standardized and the thickest milk in the market. 6) Haleeb has a high capacity to produce 80,000 liters of milk per day. 7) Haleeb Foods has an innovative and a constantly growing product line. 8) Haleeb Foods is a Customer Oriented and social responsible Company. 9) Haleeb have Qualified Work force. 10) Their focus on Research and Development in packaging solutions and periodic research to judge market trend gives them an edge. 11) First dairy company in Pakistan to get ISO 9002 certification 12) Haleeb have a business without interest. 13) Haleeb is not selling its products only in Pakistan but they are exporting their products to other countries like America, East Asia, Afghanistan, Bangladesh and Europe.

Weaknesses: 1) Haleeb Foods is comparatively a local company in comparison to its rivals like Nestle. So, Competing with such giants is a bit difficult. 2) Haleeb have a centralized decision making system.

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3) Low or almost no sales on credit, where as all the other companies in this sector do this. 4) As UHT treated milk is a highly value added product so the costs also increase accordingly, so the overall costs are high. As a result the overall price also increases. 5) Uncertain economic and political conditions of the country effects them as the product is sensitive. 6) The demand of the market is less then the actual capacity of the production plant which is also a reason for high prices of the end product. 7) Haleeb foods has comparatively striker terms and conditions. 8) Haleeb was out of the promotional scene from 5-6 months when Olpers was launched.

Opportunities: 1) Pakistan is the fifth largest milk producing country of the world, where the raw

material is easily available and in abundance so they can increase their production and sales also by promoting their product in a better way. 2) The general public is currently using the open gawala milk and only 9% is using the UHT milk so still there is a lot of market available for the company to capitalize. 3) Haleeb can go for related diversification by providing flavored yogurt, ice cream

and milk products like kheer and firni. 4) Haleeb still have an opportunity to explore more countries for export their

products. 5) Haleeb bottle another opportunity for them to capitalize. 6) Credit policy can be adopted to increase sales of the products. 7) Haleeb Foods can go for joint venture with other companies to attract the market share. 8) A trusted name in products for all age consumers can also go for baby cereals as a number of people are still brand loyal to them.

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Threats: 1) Competition with Nestle, Engro Foods and the new entrants. 2) Effect of the changing in seasons affects the level of production and consumptions. 3) Haleeb is currently facing are increase in Sales Tax. 4) Dependency on contractors for the supply of milk. 5) The economic condition keeps on changing rapidly, which result in rupee devaluation and as the raw materials for packaging are imported which can result in the end product price fluctuations. 6) Price sensitive people. 7) Milkman providing open milk and even delivering it to the door step. 8) The target market is still small in numbers where as a number of companies have recently joined the dairy sector in the past 3 years.

SWOT Analysis of Dairy Industry Strength •

Endowed with the very good breed of buffalos and cows

•

Highest per capita consumption of milk in Asia

•

Regular culling of less productive/unproductive animals

•

A high ratio of agricultural land to agricultural ratio

•

An emergence of commercial dairy farms on a large scale

Weaknesses •

Small and scattered animal holding

•

Prevalence of traditional raw milk marketing system

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•

Poor quality of milk; lack of remunerative producer price for milk

•

Milk processing predominantly dependant on obsolete UHT technology

•

Mushrooming growth of cattle colonies in suburban areas; High cost of milk

•

Production; a long chain of middle men

•

Inadequate infrastructure and institutional facilities and support

•

Low utilization of installed capacity of dairy plants

•

Poor quality of animal health care and breeding services; lack of professional management

Opportunities •

Huge unsatisfied demand of milk and milk products.

•

Substantial scope for increasing milk production through improvement in the marketing system by ensuring a year round remunerative price to milk producers

•

Increase consumer awareness of healthy eating

Threats •

Unregulated imports of dairy products at cheap prices

•

Inadequate public and private investment in modernization of the sector

•

Vested interests in perpetuating the dependence on imports of dairy commodities

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SWOT Matrix Strengths • • • •

SUPER SWOT

•

• • • • •

• • •

Haleeb has a strong brand image, as it is in the market from such a long period of time (1986). A company with growing sales and profits over the years Major share holder in the food industry of Pakistan like Nestle etc. A vast distribution network for Urban as well as Rural areas that make sure that the product is easily available everywhere. The nature of the products is good, i.e. Quality products, standardized and the thickest milk in the market. Haleeb has a high capacity to produce 80,000 liters of milk per day. Haleeb Foods has an innovative and a constantly growing product line. Haleeb Foods is a Customer Oriented and social responsible Company. Haleeb have Qualified Work force. Their focus on Research and Development in packaging solutions and periodic research to judge market trend gives them an edge. First dairy company in Pakistan to get ISO 9002 certification Haleeb have a business without interest. Haleeb is not selling its products only in Pakistan but they are exporting their products to other countries like America, East Asia, Afghanistan, Bangladesh and Europe.

Weaknesses •

• • •

• •

•

• •

Haleeb Foods is comparatively a local company in comparison to its rivals like Nestle. So, Competing with such giants is a bit difficult. Haleeb have a centralized decision making system. Low or almost no sales on credit, where as all the other companies in this sector do this. As UHT treated milk is a highly value added product so the costs also increase accordingly, so the overall costs are high. As a result the overall price also increases. The income level of the people is not that high or the favorable income level group is still small. Uncertain economic and political conditions of the country effects them as the product is sensitive. The demand of the market is less then the actual capacity of the production plant which is also a reason for high prices of the end product. Haleeb foods has comparatively striker terms and conditions. Haleeb was out of the promotional scene from 5-6 months when Olpers was launched.

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Opportunities

SO

WO

Huge unsatisfied demand of milk and milk products.

Increase production of quality milk to cater the unsatisfied demand.

As per the increase demand of the milk they should start doing sales on credit.

Substantial scope for increasing milk production through improvement in the marketing system by ensuring a year round remunerative price to milk producers

Through effective marketing strategies increase the awareness of the benefits of UHT milk

Increase consumer healthy eating

awareness

They should go in the product line of powdered milk.

of They should start the range of powdered milk for infants and children below 12.

They should make a strong distribution system to cater to avail the full benefit of the growing market. They should adopt affective marketing strategies for the promotion of their product.

They should increase their exports. They should cater the wide range of unsatisfied demand by improving their distribution networks

Threats Unregulated imports products at cheap prices.

of

dairy

Inadequate public and private investment in modernization of the sector. Vested interests in perpetuating the dependence on imports of dairy commodities

ST

WT

Invest more on the dairy product line as there is still a large chunk of the market which require modernization

The co-ordination between different departments of HFL should be improved it will lessen the bureaucratic cost and increase the efficiency of the company.

Introduce new technology for quality assurance and better productivity. Increase the Plant Capacity

Haleeb has to change its perception of milk for tea only, as it is not taken as a milk for general consumption, so it looses a large chunk of consumers in the packaged milk market

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INTERNAL FACTOR ANALYSIS Key Strategic Factors

Weight

Rating

Weighted Score

4 3 3 4 3 4 3 3 3 4 3 4

0.32 0.09 0.15 0.32 0.21 0.32 0.12 0.06 0.03 0.2 0.06 0.24

0.05 0.09 0.06 0.05

1 2 2 2

0.05 0.18 0.12 0.1

0.03

1

0.03

0.05

2

0.1

0.03

1

0.03

0.05 1

2

0.1 2.83

STRENGTHS Brand Image Growing Sales Market Share Distribution Channel Product Quality Capacity Innovation Customer Oriented Qualified Work force R&D Business without Interest Exporting

0.08 0.03 0.05 0.08 0.07 0.08 0.04 0.02 0.01 0.05 0.02 0.06

WEAKNESSES Local Company Centralized Decisions No Sales on Credit High Price Uncertain Economic & Political Conditions Market Demand Striker Terms And Conditions Promotion Total

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EXTERNAL FACTOR ANALYSIS Key Strategic Factors

Weight

Rating

Weighted Score

OPPORTUNITIES Raw Material Availability Market Capitalization Diversification Exports Haleeb Bottle Credit Policy Joint Ventures

0.1

4

0.4

0.08 0.07 0.07 0.04 0.06 0.06

3 2 3 1 2 3

0.24 0.14 0.21 0.04 0.12 0.18

New Entrants Changing Season Sales Tax Suppliers Economic Conditions Price Sensitive People Gawala Milk Small Target Market Total

0.08 0.05 0.06 0.07 0.05 0.06 0.1 0.05 1

3 2 3 3 2 2 4 2

0.24 0.1 0.18 0.21 0.1 0.12 0.4 0.1 2.78

THREATS

v.

Competitive Profile Matrix (CPM)

28

HALEEB

NESTLE

OLPERS

Critical Success Factors

Weight

Rating Score

Rating

Score

Rating

Score

1

Research & Development

0.08

4

0.32

3

0.24

3

0.24

2

Advertisement

0.09

3

0.27

4

0.36

3

0.24

3

Financial Position

0.09

3

0.27

3

0.27

3

0.27

4

Market Share

0.07

3

0.21

4

0.28

2

0.14

5

Product Quality

0.08

3

0.24

3

0.24

3

0.24

6

Price Competitiveness

0.11

2

0.22

3

0.33

3

0.33

7

Management

0.10

3

0.30

4

0.40

3

0.30

8

Global Expansion

0.08

3

0.24

4

0.32

3

0.24

9

Customer service

0.06

2

0.12

3

0.18

3

0.18

10

Sales And Distribution Network

0.09

3

0.27

4

0.36

3

0.27

11

Production Capacity

0.07

4

0.28

3

0.21

2

0.14

12

Alliances Total

0.08

3

0.24

4

0.32

3

0.24

1.0

2.98

3.51

2.76

REASONS The IFE matrix for HFL is given above. Note that the strength for the company is Research and Development, Pakistan based and having a highest production capacity so got 4 rating. The major weaknesses are Price competitiveness customer service and planning for the future state of the HFL. The total weighted score of 2.98 indicates this large milk Production Company is above average in its overall internal strength. But it’s

29

very close to average limit as well. So it really needs to improve its weaknesses and build its strength.

4. CORE COMPETENCIES & KEY SUCCESS FACTORS: There are several core competencies of Haleeb, given below; •

Haleeb foods Pvt. Ltd has been able to build a good brand name in a number of years. There are several consumers who are loyal to the brand and do not shift to other brands. Building a good brand name is not easy. It takes years to build a brand image by providing the best quality to its consumers which Haleeb Foods have done. They have consistently delivered which provides a competitive advantage to the company of having a good name in the market.

•

Haleeb Foods Pvt. Ltd. Is only the recognizable food company which is doing business without interest, which means that they do not take loan or take advantage of the interest income which they can easily do? If they want loan and they cannot find anyway out they go for Islamic Financing like mudarba and musharka. It is their strength as majority of the people in Pakistan are Muslims and Muslims are advised to remain away from interest income.

•

Haleeb has one of the most modern plants which has the latest technology and has a high production capacity. They produce 80,000 liters of milk in a day which is not a small amount of milk. They have an advantage of higher production as people are demanding more and more packed milk so they can meet the increasing demand easily.

•

Haleeb is not selling its products only in Pakistan but they are exporting their products to other countries like America, East Asia, Afghanistan, Bangladesh and Europe. Exporting has opened up new markets for them and it is a source of

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revenue generation for such a company. It is difficult to grow tremendously only in Pakistan because of the number of players in the industry but exporting does not limits their sales spectrum but also give them a potential to enter many other emerging markets. •

Haleeb has one of the most extensive distribution networks across the nation. It has one of the best distributions if we compare it with other major players like nestle and all because Haleeb has over 600 distributors across Pakistan which enables them to deliver their products into far of small towns as well as villages. It is their major strength which is driving their revenues very quickly.

•

Different ISO certifications about the quality control and environmental management that Haleeb holds. These certificates prove that Haleeb has been taking keen interest in keeping its environment clean and healthy and in producing quality products.

KEY SUCCESS FACTORS: •

Research & Development

•

Financial Position

•

Market Share

•

Product Quality

•

Price Competitiveness

•

Management

•

Global Expansion

•

Customer service

•

Network Sales And Distribution

•

Production Capacity

•

Alliances

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5. strategies under taken at : Strategies undertaken at: 1. Corporate level 2. Business unit level 3. Functional or departmental level

Corporate Level: The corporate level is more concerned with the big picture than other levels of management. It decides the overall strategy of the organization, works closely with the various stakeholders, relates to banks and stock, raises capital, makes major acquisitions, divestitures, joint ventures, licenses, etc, deals with the media, provides internal auditors and deals with the external auditors, provides training programs and makes major human resource decisions such as the compensation of senior executives. At Haleeb Foods they are using Umbrella branding strategy so they had managers brand wise. The senior management for Haleeb UHT Milk included Mr. Iqbal Jutt as the Senior Brand Manager, Mr. Hassan Wajahat Assistant Brand Manager, and Mr. Ahmer Shahzad. Their major duties are the planning and image building efforts that they can do for their brand. The training of the personnel is done in house at Haleeb institute of Leadership which is done by the HR people and the people from related departments.

Business Unit Level: A strategic business unit may be any profit center that can be planned independently from the other business units of one’s corporation. At the business unit level, the strategic

32

issues are about both practical coordination of operating units and about developing and sustaining a competitive advantage for the products and services that are produced. It is the entity that concentrates on a specific business. They do not need to develop plans for areas outside of their own specific missions. Typically, the business level is concerned with the total of applicable individual functions that make the business operate. It is at this level that identifying the right individual products and the right market niches is most critical. In Haleeb there are countless departments and SBU’s and they have their own hierarchy. Like business unit for milk and bottle water is separate, ice-cream, yogurts have also separate SBU’s. So they gave idea for developing a product, do segmentation and define the target market.

Functional Level: As we are living in the dynamic world and in this rapidly changing environment, customer taste is also, so right decision at the right time is always needed in order to perform effectively and keep organization top of their desire. Output of one department will be the input of other, so every department should timely in order to keep the costumer long with their company offering otherwise the costumer will switch or move to competitor products. The functional efficiency is monitored through the sales reports and different survey sessions that are conducted by the company when they feel need of.

• Quality Assurance Department Quality assurance department play a very important role in any production concern organization because organization are depended on them, no other department can do anything if the product is not made according to customer demand or the standards which the organization maintain.

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•

Research And Development

Research and development also play a very major role in an organization. This department is directed by the marketing department which gives directions for conducting tests if any product is having some problem pointed out by the customers.

•

Production Department

Production is the functional area responsible for tuning inputs into outputs through a series of production processes, and the production manager is responsible for making sure that raw material are provided and made into finished goods effectively.

•

Marketing Department

Marketing department of any production concern works like the heart of human body. The marketing department is the unit of organization, traditionally charged with carrying out specific tasks that are deemed to be “marketing” (such as advertising, market research).

6. MANAGEMENT STRATEGIES

Marketing Strategy Haleeb has been working since 1984 and in the number of years haleeb has shifted its strategy a number of times. Haleeb’s best days were when haleeb was focusing on their

34

premier product which was Haleeb milk. They used to keep a focus on this product and very well marketing research was done and a strategy was formulated which worked out very well for Haleeb. This strategy was to focus on their premier brand while introduction of new products was also being done. Haleeb gained a market share of 46% by using this strategy.

Current Strategy: According to porter’s generic strategy Haleeb is following product development and related diversification strategy. The companies following differentiation strategy try to achieve class leadership by providing unique characteristics to the product/service. In other words the aim is to create a highly differentiated product and marketing programme like design or brand image, customer service or dealer network. If a firm has strengths in R&D, design, Quality control and marketing, this could be one of the strategic approach routes. Haleeb is doing the same it is continuously doing product development. Just recently haleeb launched a new product line which is of deserts and haleeb started of their business with dairy but then later on it introduced beverages as well so Haleeb is following the differentiating strategy.

i.

Human Resource Department

The ultimate success of a company lies in HR. to cater the issue of HR; HFL has a very extensive HR department which dictated HR policies, having a well documented pertinent material. Human Resource Management at Haleeb strives to achieve organizational goals and goals of the employees through effective personnel programs, policies and procedures. This department is mainly responsible for: 35

Recruitment and Selection of Employees •

Available position is advertised in newspaper

•

Department Coordinator receives C.V. and other documentation.

•

Short listed candidates interviewed by department manager.

•

Final candidates interviewed by a panel of: 

HR Director



Two Relevant Managers

Formulating Training and Development Programs •

Most training is on the job training

•

Every department has its own training program.

•

Workshops

•

Step by step job instruction training.

Job Description •

The nature of their work and their working hours.

•

Salaries

Conducting Performance Appraisal They have claimed that in this Performa, the target achieving tendency of the employee and his/her behavioral traits such as follows are measured:

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o Communication skills

o Leadership qualities

o Work organization

o Development orientation

o Result orientation o Team player o Self-confidence

o Strategic vision o Business knowledge o Critical reasoning

Besides that there are some grey areas which need to be under consideration like there is a lack of co-ordination with other departments for recruitment schedule. HR is not playing a substantial role in motivating their employees. Although they had claimed that, they are having a strong motivational system but they are some what lacking in giving the sense of achievement to their employees

ii.

Administration

Haleeb has a very extensive admin department. The responsibility of this department is to take care of myriad issues ranging from buying new vehicles plus to arrange some sport events for their employees. All purchases except for raw materials are done by the admin like disbursement of stationery and office equipment. For the purchases of the new item the concerned people has to approve CAPEX from the Admin

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iii.

Quality Assurance

Quality assurance department also has a very vital role in an organization. Quality assurance department is involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed by using a cross-functional approach. Many organizations are dependant on this department. Quality is synonymous with Haleeb. Haleeb has a separate department for QA and they are following strict control policies. Every product made by Haleeb guarantees the use of quality materials and processing. This is all due to the strict Quality Control standards, observed at every stage of the production, from raw materials to dispatch Department. The Research Development and Control Department makes stringent requirements on quality control, which help in working consistently towards attaining better results for customers. The incoming raw materials and end products leaving the factory are constantly checked to make sure the items produced meet the expected standards. To ensure constant quality and improvement this department managed by qualified scientists. For instance as the milk comes in HFL production plant, their first job is to take sample of the raw milk and check the suitability of milk either the milk is able to proceed further or not. If the sample passes, they start measuring those standards they are following till the end they again test the products for the suitability to shipment

Quality Policy: We are committed to 1. Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, and affordable, highly nutritional food products through environment friendly processes to our customers while maximizing stake holders' value.

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2. Meet the requirement of all relevant legislation and regulation related to consumer satisfaction & safety, environment and other applicable laws etc. 3. To prevent pollution through controlling levels of harmful emission, effluents and other wastes. 4. Contribute to safe and healthy environment for our country. 5. Promote mutual trust with customers, suppliers, employees, shareholders and community. 6. Provide all the necessary resources for the continual improvement in quality, safety of our products, processes and environment

iv. Marketing Department We are living in an age of Marketing. Marketing Department is of paramount importance, because it plays a link between the consumer and the manufacturer. The function of the Marketing Department is to ensure that consumers receive what they need. If marketing department works effectively and efficiently, the whole organization is on a smooth run. It also plays a key role in the operations of the organization. Haleeb has a vibrant marketing department too. This department is responsible to take charge by reviewing the sales report and if any deal is going on regarding packaging, distribution or any other concern, it contacts with the representative persons. Current market demand is estimated through the distributors. They also carry out market surveys for new as well as existing products.

v. Finance Finance is also an important issue. Haleeb also has a well equipped finance department with the resource but at times there are issues with delay in work from their side main problem which we have observed is in the costing of some new items.

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vi. Decision Making System Haleeb is using Centralized Decision making system. Although they have claimed that they empower their employees to become more participative and more committed towards their organizational goals. But in reality it’s a nightmare.

vii. Motivation and Incentive Techniques Haleeb claims that they are using the best practices to motivate their employees like recognizing the efforts of employees, giving them rewards and incentive, occasional bonuses, giving commission on achieving targets etc. But in reality they are some what lacking in that.

7. MARKET ANALYSIS The market coverage strategy that Haleeb has opted is Product Specialization and the competitive positioning strategy that they have adopted is product development .They are now the market challengers and using frontal attack strategy. According to the current situation what they currently do is that they opt for Market Penetration. The main things that can be done here are: •

Maintain or increase the market share of current products

•

Secure dominance of growth markets

•

Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors

•

Increase usage by existing customers

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1. SEGMENTATION The Segmentation technique that Haleeb foods have adopted is very simple and straight. They have just divided the market into segments which are class wise i.e. A, B, C, D. The Haleeb brick Pack is targeted for class A and B, where as for the classes B and C they have made their product Haleeb Dairy Queen, where as for B, C, D they have designed Haleeb Reshami pack that is produced or packed only in the their Raheem Yar Khan plant and is targeted for the mentioned above segment.

2. TARGETING The targeting strategy that Haleeb Foods use for the Haleeb brick pack is Undifferentiated for all the market that is they have a same marketing mix for the complete market and they take the whole market that includes all the people with different usage of the product. In such a targeting decision a basic product would be offered to the whole market that includes almost all age groups and different life styles.

3. 4 P’s AUDIT PRODUCT ANALYSIS i. Variety Haleeb as a whole has a large variety of dairy products that they produce in house and they keep on going for related diversification whenever they get a chance of doing so. At Haleeb they have a big variety of milk which comes in brick pack, fino packaging and at the same time their recently introduced Haleeb Reshami pack, all are the different variety of ways in which they present their product.

41

ii. Design Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aseptic (TBA) which is very safe if we analyze it from health point of view. The color of the packaging is Blue with a traditional white flower on it, which has become the symbol or icon of the firm.

iii. Features Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest standard. The features of the product are vast in such a way, that the products usage is positive in many ways as it’s a must for someone who is looking for a healthy life style plus its also got a good place in the religion that milk is preferred on many other things, other than that the UHT treated milk is valued among the public as they are getting more awareness day by day to how to adopt a healthy life styles and in such a way the product features are more and more for the customer.

iv. Brand Name The brand name Haleeb itself has become a trusted name, as they have been in market from many years and they have been striking the consumer mind from 21 years that is quite a long period of time if we compare it to the industry total time period. Haleeb Foods was established in 1986 and its first product was Haleeb milk. Since then, it has continued to provide quality products to its consumers with product and packaging innovations.

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v. Packaging Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Packed in easy to open, 6-layered Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life. It is Haleeb Foods premier brand, and the choice of quality-conscious consumers who only go for the best.

vi. Packing Details: 1000 ml: 12 packs/carton 500 ml: 12 Pack/shrink-wrapped tray 250 ml: 27 Pack/shrink-wrapped tray

PRICE The current pricing method being used at Haleeb Foods for Haleeb Brick Pack is GoingRate Pricing in which a company sets prices based on what the competitors are charging. According to the person we met at Haleeb Foods they said, “Haleeb Foods and Nestle Milk Pack sit together and come up with the final retail price that they will charge”. Rest of the companies then start charging according to that price.

i. List Price This is the price that is charged by the retailer to the end consumer for the product and this is the same all over the market that is, it is same in all provinces and other geographical locations.

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ii. Discounts Discounts are usually related to the distributors and the retailers which are confidential and vary. Discounts can be given to retailers as well but that would be same for all. Different discounts can be given to the wholesalers and distributors on the factors like how much quantity they pick from the company and the same goes for the retailers. Other than that it is also depends on different factors like payment terms, that is credit or cash and how quickly do they pay off if they are doing so on credit basis like the rates would be different if the days of credit taken are longer. Seasonal discounts are also given like in winters the supply from the milk farms is high and the company also has to get rid off the production as well so they are a bit relaxed with the term and conditions.

iii. Payment Period and Credit Terms Haleeb Foods does not offer its products on credit terms; they do it mostly on cash but in only some cases if they do it, they merely do for a maximum two or three day credit only. This is also an important factor on which they seriously need to think on as their competitors are doing this quiet frequently.

PLACE i. Channels It is the mechanism through which goods are moved from the manufacturer to the user. At Haleeb foods it is very simple, the finished products move from them to the wholesalers and they make sure that they deliver it to each and every retailer.

44

ii. Coverage With their large number of distributors they make sure that the product is available almost everywhere and to make sure about such issues they have divided areas among distributors who are responsible for the product availability and on time delivery.

iii. Locations Haleeb brick pack is a frequently used item and can be termed as a product that fulfills the basic needs of the consumers, so it is made sure that it is available at almost every grocery store and convenience stores and as Haleeb is such a brand that is in the market from many years the retailers also are happy to keep it.

iv. Transportation The products are delivered through the distributor vans in case of Haleeb brick pack.

PROMOTION Haleeb Foods have been using both the Push and Pull Strategy in order to do the promotion of their product. The budget that they have recently allocated is all you-canafford budgets. After staying quiet static over the last semi-year or so in terms of its promotional activities Haleeb Foods came up with some extremely heavy advertising campaign through its TVCs and other Print media tools starring some industries most expensive models and some exquisite and eye catching sets which really attracted the consumers attention. The campaign through the print media was also exclusive and was very heavy and could be seen at every single retail outlet in Lahore which is their most valuable market area wise that they are catering to. Their advertising campaign was not only targeted for the consumers but that campaign was also especially designed for the 45

retailers as well in which they were not only given certain posters to place on their shops and walls outside their shops but other than that the retailers were given different hand outs in which the company, Haleeb Foods asked the retailers to give assured attention to their product and also explained about the heavy advertisement campaign that they had launched for their product. In that hand out they had asked the retailers to give some special shelf space to their product as a certain pull would be created after all that campaigns on TV and through the print media. Other then this all the staff which goes into the market is an ambassador of the company and portrays the image of the product and Haleeb foods also realizes this fact and plays special attention on such small aspects and has been taking steps to keep on monitoring the performance of such employees and has certain instructions that are to be followed by the distributors while they do their work. In their current marketing campaigns they have been extremely focused about clearly getting their message that is Garha Doodh i.e. Haleeb is the thickest milk as compared to other milk, as they are required to portray their product as Unique from the other ones in such a market. As they have a leader like Nestle Milk Pak to challenge so it becomes more difficult and challenging for them to challenge such a giant in this ever dynamic environment. In addition to this as their product which is of daily usage and involves low Buyer involvement they strictly need to keep on focusing intensely on this part of the marketing mix which from the last couple of weeks they have been trying to do so. During the Eid days they had shown immense TVC’s of Haleeb and that seemed to be a re-launch of their product i.e. Haleeb Brick Pack. The methods of promotion used by Haleeb Foods for the Haleeb brick Pack in their recent advertising campaigns are as follows: Affiliate Program, Banner Advertising, Billboards, Flyers, Magazines, Radio, Sponsorship of Related Events, Television Commercials etc.

4. Market Share Haleeb has a 28% of the total market share. They are the market challengers. The market leader is of Nestlé’s with 36% of market share.

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5. USP’s The key to effective selling in this situation is what advertising and marketing professionals call a "unique selling proposition" (USP). Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully. Pinpointing your USP requires some hard soul-searching and creativity. One way to start is to analyze how other company’s use their USP’s to their advantage. This requires careful analysis of other companies' ads and marketing messages. Haleeb have certain USP’s.

1. They have thickest milk available in the market. And it is milk best use for making tea and coffee. According to their slogans:

“Chai banae khoob Haleeb--- Sub se garha doodh Haleeb” 2. They have recently launched “Creamy Custard”, it is a unique concept introduce by Haleeb and according to their slogan”

“Haleeb Custard----It’s Creamy!!” 3. The premium cream processed hygienically from pure fresh milk, Extra cream is added in Haleeb Cream to make its taste luxuriously rich and have extra nutritional value.

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6. COMPETITIVE ANALYSIS • Nestle Pakistan The strategic priorities of Nestle Pakistan are claimed to be focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long-term growth. Improvements in profitability would be achieved with due respect to quality and safety standards at all times. In line with the above objective, Nestle Pakistan aims at growing into a number one food company in Pakistan in the shortest possible time with the unique ability to meet the needs of consumers of every age group - from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of products with highest quality. Nestle Pakistan envisions that the company should develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. Special training programs have been designed for employees at each level to keep up with and develop this vision. The study concludes that Nestle has a significantly high growth rate (36%) and has grown and developed at a high pace in short span of time. On the other hand Haleeb has a market share of 28%. The major contributor toward this growth and development are human resource, marketing and sales departments. The major contributor is its appropriate strategy particularly its relationship with the social and environmental sectors. Perhaps this is the reason that it in spite of being a multi-national has been well accepted in Pakistani culture. There are ample chances of its survival in future. • Keeping new players such as Olpers, and the old one’s like Haleeb, Nestle focused more on advertising.

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• Nestle have been experiencing a constant increase in cost with raw material contributing the larger part of this increase. Haleeb having their own suppliers so the raw material cost is bit low. • Nestle maintained its value of gross profit margin around or above 30% to ensure that it has a strong control over its costs, and the efficiency of production. But on the other hand, Haleeb faced a bit of down fall when Olpers introduced their campaign.

7. POSITIONING Haleeb foods have been positioning its product by its attribute and by usage or with respect to its application. Positioning is the place where Haleeb has not been able to convey its message in an effective way as their slogans have tend to show the target public is bored of their slogans, according to their slogans “Chai banae khoob Haleeb” They have portrayed their product with a limited usage i.e. it is only good for making tea, where as it could have been positioned as for drinking purpose as well and other then that it could also have been positioned for usage in the Kitchen i.e. for cooking and for making sweet dishes as well. Positioning is the only way through which a company can increase the functionality of its product and can portray it as a more useful product. In their recent campaign their tag line was: “Aik Garha rishta umer bher k liye”, which did not sound that much touchy to us.

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8. FINANCIAL RATIO ANALYSIS

1) Liquidity Ratios LIQUIDITY RATIOS /Current Assets Current Liabilities

= Current Ratio = Quick Ratio

YEAR 2006

2007

/Current Assets—Inventory Current Liabilities

CURRENT RATIO 0.88

0.94

QUICK RATIO 0.45

0.46

Remarks:

50

•

This ratio indicates to what extent cash on hand and disposable assets are enough to pay off short term liabilities. A current ratio of assets to liabilities of 2:1 is usually considered to be acceptable. Acceptable current ratios vary from industry to industry. If a company's current assets are in this range, then it is generally considered to have good short-term financial strength.

•

If current liabilities exceed current assets (the current ratio is below 1), then the company may have problems meeting its short-term obligations. If the current ratio is too high, then the company may not be efficiently using its current assets.

•

In the case of Haleeb’s current ratio has increase from year 2006 to 2007 which indicates that it has improved to pay short term obligations as compared to the last year.

2)

Leverage Ratios LEVERAGE RATIOS Debt to total asset Ratio Debt to Equity Ratio Long-Term Debt to equity Ratio

/Total Debt Total Assets . / Total Debt Total Stockholder’s Equity Long-Term Debt/ . Total stockholder’s Equity

Year

Debt to Total Asset Ratio

Debt to Equity Ratio

Long-Term Debt to Equity Ratio

2006

0.80

4.1

2.04

2007

0.74

2.85

1.40

Remarks:

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•

The Debt to Asset Ratio takes into account all debts of all maturities to all creditors. A value of less than 1 in this ratio means that the company could not cover all of its debt by selling all of its assets. HALEEB’S assets are mainly financed by outsiders or debts. This ratio measures the percentage of total funds provided by creditors versus by owner.

•

Look for a debt to equity ratio in the range of 1:1 to 4:1. Debt-Equity ratio indicates that capital structure of HALEEB is mainly based on debt financing.

•

This ratio for HALEEB is showing that out of total funds available for long term, major portion is equity. As compared to the last year the company’s position is improved as they have made more investments.

3. Activity Ratios ACTIVITY RATIOS Sales Inventory of finished goods Sales Fixed Assets Sales Total Assets Annual credit Sales Accounts Receivables Account Receivable Total credit sales/365 Days

Inventory Turnover Fixed Asset Turnover Total Asset Turnover Account Receivables Turnover Average collection Period

Year

Inventory Turnover

Fixed Asset Turnover

Total Asset Turnover

Account Receivables Turnover

2006

9.8

2.65

1.70

6.3

2007

9.9

2.76

1.78

7.5

Remarks:

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It shows that in how many days company sold the entire inventory. The higher the ratio the more is inventory being managed efficiently. Because inventories are the least liquid form of asset, a high ratio is generally positive. This ratio measures how productively the firm is managing its fixed assets to generate sales. For every Dollar in Assets how much sale we have generated. Higher the ratio greater will be the resource utilizations. It indicates that how effectively HALEEB is utilizing its resources. This gives indication of how fast we can sell product. So we will see how fast we collect on those sales. HALEEB’S receivable turnover is improving. Therefore on average HALEEB collection period is decreasing, so its recovery performance is improving day by day.

4)

Profitability Ratios PROFITABILITY RATIOS Gross Profit Margin

Revenue-cost of sales/revenue /Net Income Total Assets . /Net Income Total Stockholder’s Equity /Net Income Number Of Shares Of Common Stock Outstanding /Market price per share Earning per shares

(Return on Assets (ROA Return on Stockholder’s Equity Earning per shares Price earning Ratio

Year

Gross Profit Margin

Return on Assets ((ROA

Return on Stockholder’s Equity

Earning per shares

2006

28%

10%

53%

30.06

53

2007

28%

11%

44%

39.81

Remarks: •

This ratio indicates the amount of income that the company earns on each RS of sales. The gross profit margin is related to the net profit margin, which assesses the profitability of an organization after including fixed costsThe trend in this ratio from month to month can show how well the company is managing their operating or overhead costs. The margin has not changed in the current year which shows that the company’s operations are stable. This shows the amount available to stockholders or owner of the company, so higher the ratio there will be higher earning and dividend for stockholders.

•

ROA measures profit per rupees of assets. We can compare this rate to the interest rate that the company pays to borrow funds. If the return on assets is above the borrowing rate, the company is profitable.

•

ROE measures profit per rupees of equity. This ratio indicates what return the company is generating on the dollars invested by its owners. High values for this ratio indicate that the company is less likely to require debt or additional equity investments. HALEEB’s return on equity is declining.

•

This ratio shows the amount of earning per share and a company with earning per share. This ratio indicates that the company with high earning per share will be in a position to declare the high dividend. This ratio has improved this year.

8. OTHER STRATEGIES i.

R&D

To keep up with new demands Haleeb has a Research & Development Department. This Department is considered as one of the most important department. The Research &

54

Development Department works in close collaboration with the Production Department. It helps the Production Department to maintain a standard of the products being produced. All the new materials are tested according to the certain specifications. It also has a lot of interaction with the Marketing Department, because marketing department is responsible to inform them, regarding the sale of particular product either it is good or not. Hence that department is responsible for conducting research and go for certain tests in order to sort out that particular issue. In addition to that they also provide support to the production department by coming up with new ways of improving quality and also increase the efficiency.

ii.

Procurement

Procurement is basically the acquisiton of goods or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place, and from the right source for the direct benefit or use of corporations, or individuals. Haleeb also has a very strong procurement system. Haleeb also having their own farms, the main function of this department at haleeb is to procure the acquired goods and services. Procurement activities at haleeb are split into two distinct categories. •

direct, production-related procurement

•

Indirect production-related procurement.

Direct Production-Related Procurement The main responsibilty of this department is to encompass all items that are part of finished products, such as raw material, components and parts. Direct procurement, which is the focus in supply chain management, directly affects the production process of manufacturing firms. Under the supply chain all the products after packaging are trasnfer to the ware house from there they are loaded to the vehicle and transported to the desired destiny.

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•

Stock report generated on a daily basis

•

Then order sheets are made according to the stock report

•

After doing that they made arrangements to load that particular order

•

In the end the order is dispatched and the whole process is completed.

Indirect Procurement Activities Concern Haleeb also doing indirect procurement activities.In contrast with direct procurement, indirect procurement activities concern “operating resources” that a company purchases to enable its operations. It comprises a wide variety of goods and services, from standardised low value items like office supplies and machine lubricants to complex and costly products and services like heavy equipment.

iii.

Production Department

Planning and Production are the most important department. Production department is responsible for turning input into output through a series of production process. It also controls all the operations under the factory. The production department looks after all the production functions and checks out that the production is going on according to the given schedule. They are also responsible for any delay in production process. Plus the production manager is responsible for making sure that raw material are available and then turned out into finished goods efficiently. The role of the manager is to make sure that the work is carried out smoothly. The first shift in charge take his control and then he review the ongoing production, how much it done and how much it needed in order to meet the order, so they keep the process going on till the order gets completed. They continually communicate with the employees of other departments like for quality assurance section regarding the goods which are

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produced are meeting up the quality assurance standard or not otherwise they opt for certain test. And if they get any order from the representative production manager from other department the employees of the production department go for to check the availability of the raw material which they need in order to fulfill the order and then they proceed the order to subordinate after the order get done. They handle the stock to ware house and get a slip in return as a proof and then dispatch.

10.CONTROL PROCEDURES

1. Marketing Control: There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination. Marketing information Systems are used at Haleeb Foods in the form of a separate department that works with the name of IS dept. They are responsible to generate reports for any department if required. Marketing planning system was not working efficiently as according to the distributors they were at times not able to get their demanded products in the specifications that they wanted to have for example quarter pack is in high demand in summers. Etc. Marketing Control System is monitored by the brand manager and they continuously keep a check and balance of their results and their desired status. NPD at Haleeb Foods is done by a separate individual who is in touch with all the related brand managers and keep on giving ideas and then select the one that can be implemented.

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2. Production Control: Production control usually involves a specialized staff to manage batch scheduling. This work might involve daily and weekly backups running at particular points within a complex sequence of application suites. Production control is not that much effective at Haleeb Foods as they have a large portfolio of products which makes it more difficult to distribute the scarce resources among all brands. They are not doing proper analysis as some of their products is not that much successful in local market and still they are continuing them. But on the other hand, they are exporting them out side, so they are earning more revenues.

3.

Quality Control:

The Haleeb Foods Limited (HFL) is taking care of quality of production by using acceptance sampling procedures. Company officials reported that they were very strict about the quality and employed state of the art technology to ensure quality of the milk procured from various channels. Also, told that quality and regular supply were the sole criterion for selecting suppliers. VMCC agents ensured quality on the behalf of company and again the milk procured by each VMCC had to pass quality checks at PHE. To check the validity of sampling plan adopted by HFL, 30 sampling plans are compared with respect to AQL, AOQL, ATI and LTPD. The results and conclusions show that quality is always towards an improvement trend. The technology is no more the superiority as it is accessible to every one. Investigation and reduction in variations is a key to process improvement. For HFL a single sampling plan with N=2700, n=30 and c=1 is suggested, for better quality products.

4. HR Control: 58

All organizations are made up of people, so organizations always work in benefit of their employees to have better profitability and results. The training of the personnel is done in house at Haleeb institute of Leadership which is done by the HR people and the people from related departments.. In Haleeb, HR control also works for the retrieval of the key employee’s data and their maintenance.

5. Finance Control: Haleeb is using financial control to create the value for the share holder by allocating the resources. As they keep it confidential, they didn’t disclose their financial terms and procedures.

11.PROBLEM SECTION Any strategic activity must address two basic issues that are selecting a competitive strategy and then putting it into practice. Implementation and control address the second issue i.e. putting the selected strategy into practice. Managers can never underestimate the importance of the complexities associated with this phase. Two factors determine the success of a strategy: the strategy itself and an organization’s ability to implement it. The implementation phase badly needs the support, devotion and concentration of human resource and this is the key thing that makes the difference at most of the times. Planning is the easy part of the work but the main thing is implementation for it needs the hands on knowledge and the experience that will make sure that the work is taken the way it was intended to be. Without implementation, the plan remains only as some ideas on a piece of paper.

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There are Some Problems Haleeb is facing according to them and according to our analysis: •

Centralized Decision Making System

•

No Any Aggressive Steps To Counter Competition

•

Packaging Problem

•

Taste Problem

•

No Proper Portfolio Managements

•

Weak Promotional and Advertising Campaigns; especially when Olpers launched.

•

No Proper Strategy Formulation And Lack Of Strategy Implementation Plan

•

No Sales On Credit

•

Biased view of consumers due to Haleeb’s thickness.

•

Market is not properly segmented

•

More focusing on exports, although there is a large opportunity in local market.

•

Countless Departments and all have separate departments

12. STRATEGIC RECOMMENDATIONS

As the product is in the maturity stage according to the products life cycle where the company and the product are well-known and well-established, hence the company should in order to maintain and add to its market share keep on coming up with incremental changes in the product and keep on coming up with some promotional activities that would remind the consumer of the presence of their product.

Capitalize From More Major Markets: Haleeb Foods Ltd has still got a large market to capitalize as their sales are larger from Lahore then Karachi which is a far bigger market as compared to Lahore, so they should

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take steps in improving their market share as well. Karachi market is dominated by Olpers as they have a plant there and they can do distribution there in a better way and they have also opened one plant in Punjab as well now which could mean that they can dominate here as well.

Segmentation: Segmentation can be done by behavior of the consumer or according to the usage of the product.

Promotion: i.

Frequent and timely Advertisements: FMCG low involvement

According to the audit that we conducted we came to know that Haleeb had not been doing advertisement in the recent times and for that reason they were sort of losing their position in the mind of the consumers that they had previously, so as a result they should come up with some frequent advertisement campaigns as they are selling a FMCG which has a low involvement of the consumer so the advertisement and promotion that are used keep on clicking the consumer’s mind and remind them that are brand is there in the market. The promotional campaign that Haleeb is currently doing is very attractive and is also extensive, targeting all the main areas of the Lahore city.

ii.

Awareness Campaigns:

As Haleeb Foods has been serving its customers from 21 years and were the pioneers of the UHT Milk concept in Pakistan and an ISO certified company as well, So they have got a very strong character in the development of the country as they had been providing job opportunities to the public and an annual turnover of over 9 billion makes them a big contributor to the dairy sector of Pakistan, so as a result they should come up with some campaigns that would help promote them as a brand that is not only to make money but also good for healthier life style of the general public. In this regard what we 61

recommended is that the company should start some activities like Awareness Campaigns for the general public, in such a way they would be able to help the consumers in different ways and also will be able to win some space in the mind of the consumers. Awareness campaigns recommended by us are of two categories, one for the general public and one for the country as a whole. The former one would be a good idea to do as the current government would also help them in this regard as they also want to portray a softer image of Pakistan and increase the traveling of people to those areas as well and as a result this would lead to more business in those areas and improving the economy as whole. The campaigns are as follows:

iii.

•

Why Haleeb is the thickest, Campaign

•

Health and Nutrition Awareness, Campaign

•

Northern Areas Awareness, Campaign

Cross-Merchandise Promotion:

This is another thing that we recommended for the company in order to increase the benefits of the product and to help promote the different ways in which the product can be used. For this we recommended that the company can promote the product with crossmerchandise for example, promotion with cereals brand like Kellogg’s, Haleeb can give its quarter pack free with one big pack of Kellogg’s and can also promote in future in its advertisements the culture if having Cereals with Milk which will highly be appreciated in their target segment. Cross Promotion will also help them establish strategic partnerships with such companies and will help them learn many different things from such companies that are operating globally as well.

Relationship Marketing Approach: Haleeb Foods maintaining a 21 year old relation with its customers by providing healthy and nutritious products has won a strong share in customer’s heart and mind. They should do more in this regard and try to adopt a Relationship marketing approach.

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Different steps that they can do in this regard are as follows: •

Develop a communication Plan

•

Coordinate communications

•

Send newsletters

•

Send success stories,

•

Copies of letters of praise from clientele,

•

News of staff awards.

•

Breakfast or dinner forums (PR activities)

•

Seek advice year-round from elected officials

Personal Selling: Haleeb Foods can come up with more activities that would involve personal selling activities that can take place at Sunday Bazaars where the company can set up its stalls for selling not only Haleeb Milk but other products that are a part of its portfolio like Haleeb Good Day, Haleeb Cream, Haleeb Asli ghee etc.

Improve the Physical Evidence: Shelf Or Racks Recommendations were given by us to improve the physical evidence or the shelf spacing of the product at different levels. This program was designed at two levels and would be implemented by the sales force of the company and would be monitored by the marketing team as well. The two levels at which this campaign is designed are as follows: •

Small grocery stores.

•

Departmental Stores.

Incentives for Retailers: Haleeb foods can come up with some special Incentives for a retailer that is they can facilitate the retailer by giving them refrigerators for keeping their products. As Haleeb 63

foods has a portfolio of products which are all from the dairy sector and are required by the retailer in order to keep the products chilled. This will improve the placement of the product and will also work as a source of promotion of the brand Haleeb as well in a better way.

Portfolio Management: There is no proper portfolio management at Haleeb Foods Ltd as they have now a number of products in which they are operating. There are still a large number of products that they have not advertised yet and hardly anyone is aware that they are launched or available in the market. So they should analyze this aspect as well and divest the dogs according to the BCG Matrix, for the question marks to perform in a better way.

Reduction of Countless Departments: Too much departmentalization results in the in-effective communication between them, so either they should opt for better communication measures or should lessen down the departments or organize meetings that would reduce the gap.

People: Another recommendation is about the people who are associated with the distribution of the product. It is recommended by us that a company’s employee should accompany the distributor not only for order taking but should also go with the distributors when the products are delivered to them in order to make sure about that the work is done the way it was intended to be.

Proper Corporate Environment: The final decision making is with the CEO of the organization, who has the right to Vito any issue at any time; this leaves a demoralizing and a de-motivating effect on the people working under them. Once this happened when they had designed a proper campaign and

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it was just refused by the CEO Ch Illyas, because it had some glamour issues etc. so they should be a little co operative and a bit more strategic in their approach.

Proper Supply Chain: Haleeb Foods has an economic source of power over its distributors and suppliers as it is a bigger firm as compared with its other channel members. There are minimal or no chances of backward integration by them so the company has a stronger bargaining power over them.

Sales on Credit: Another major problem that we came across during our audit was that Haleeb was not doing any credit sale with the distributors which are frequently being done by its competitors. As in the past few years many companies have entered the dairy sector (UHT MILK) like Olpers, Good Milk, Nirala etc so such companies have come up with lenient terms and conditions for both the distributors and the retailers as well. So in such circumstances Haleeb should also give some facilities to its distributors in the form of sales on credit and a result the distributors would be doing the same for the retailers and accordingly the retailers would be happy to keep Haleeb’s products and this will improve Haleeb’s overall image and availability in the market.

Return Policy: There are return policies at Haleeb Foods which are clearly defined but the problem that we found from the distributor side was that they were very slow to give the replacement of the expired products. According to them this process pinches them a lot because its wastes their time and blocks their investments as well.

Sales Analysis should be done:

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A recommendation from us is about the Information systems that they are having at Haleeb Foods. According to our recommendation they should monitor Sales trends from the reports generated by these information systems. According to the distributors, days do come in the year when the quarter pack is high in demand as compared to all other packaging sizes, so in order to be ready to fill up this gap in the market; they should monitor the trends and be pro-active rather than being re-active.

Not Good Relations with The Distributors: Distributors are the eyes and ears of such organization as Haleeb, as they themselves are not in touch with the retailers and the end consumer so the feedback can come from them and this a must ingredient of successful and corrective action. So Haleeb should re think on its policy with its relations with the distributors.

Decorated Vans: Neat and clean decorated vans should be used for the delivery of the products; such an action will work as moving advertisement of the company and will help in brand awareness as well. Such an action is currently being done by Dawn and it leaves a very good impact on the consumers with such high quality flexible printing with attractive pictures for the brand promotion.

Other Recommendations: •

Haleeb food Ltd. should allocate a healthy budget for advertising its products, if really wants to compete at par with its direct competitors.

•

HR department of HFL should introduce HRIS to increase the efficiency of the company; they also need to co-ordinate more effectively with other departments for the purpose of better recruitment.

•

The co-ordination between different departments of HFL should be improved it will lessen the bureaucratic cost and increase the efficiency of the company.

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•

The activities like customer satisfaction day should be performed on regular basis so the company should know the feedback and satisfaction level of customers regarding the product and the image of the company.

•

The shopkeeper complains that HFL is not providing replacement for the expired products, HFL should provide proper replacement to the shopkeeper to enhance the image of the company, and create better working relations with such an important stakeholders.

•

Haleeb has shifted to branding concept but it really has not adopted it fully, for smoother working of the different brands, the sales teams should merged with respective brand management.

•

There is no check on the performance of the distributor, and this has led to huge problems in the delivery of many products in some areas of the city.

•

Haleeb is not concentrating on the country wise basis; its major focus is only at Lahore and adjacent areas.

•

Haleeb has to change its perception of milk for tea only, as it is not taken as milk for general consumption, so it looses a large chunk of consumers in the packaged milk market.

•

Haleeb has launched too many products; it really needs product analysis and cut down its product line, only leaving the profitable brands or the brands with some good potential in the future.

•

Promotional mix at HFL is not well integrated, they are not able to communicate the strength and benefits of their products to the customer, and they need to come up with more innovative and communicative promotional mix.

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13.MARKETING ANALYSIS AND RELAUNCH OF HALEEBLABBAN

Packaged Lassi

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(Launched in 2004) Failed to achieve desired objectives

PROBLEMS IDENTIFIED The problem of this study is to identify the reasons which led to the failure of Haleeb Labban and to design a marketing plan that should be adopted for its re-launch to make it a success in the market. •

No direct competition; a niche segment

•

Indirect competition comes from packaged beverages

•

Consumer values, perceptions and preferences towards this product are very favorable.

•

People becoming skeptical about consumption of carbonated drinks and packaged juices.

•

Store was not currently carrying Labban.

•

Blamed lack of availability of Labban to the lack of awareness about the product

•

Company policy itself to produce very little quantity hindered the growth

•

Less Preferred to consume fresh fruit juices/Carbonated drinks in summers to quench thirst. 69

•

People are ready to buy packaged lassi if it offers the same quality and freshness as does the home-made lassi.

•

Most of the members were aware of Haleeb Labban but they did not know the meanings of the word “Labban”.

•

Could not associate the green color of the packaging with lassi; it should be whitish and illustrations should be very tempting and refreshing

•

Most of the participants had not seen any of the billboards or advertisements

•

People felt that the product is not easily available also no free samples distributed to induce trial

•

Housewives preferred lassi in bottle because of ease in carrying while students liked it in Tetra packaging

COMPETITOR REVIEW •

Packaged lassi has no direct form of competition

•

There is no direct competition for packaged lassi; this is a niche segment in packaged dairy products and has not yet been penetrated.

•

However indirect competition comes from all kinds of drinks

•

Packaged juices ( Rs 15/ 250 ml)

•

Carbonated soft drinks (Rs 12/250 ml)

•

Fresh fruit juices/milk drinks (Rs 40-70/250 ml)

•

Home made traditional drinks (closest competitor!)

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Perceptual Map for Lassi High Nourishment

Lassi Shakes Packaged Juices

Fresh Fruit Drink

Less cooling effect

High cooling effect

Carbonated Soft Drinks Low Nourishment

Perceptual Map for Competing Home-made Drinks Home made shakes

Low Consumption / day

Socially desirable Drink

Fresh Juices

Doodh Soda

High consumption/day

Sutoo Kangi

Lassi Family Drink

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SWOT ANALYSIS STRENGTHS •

Labban brand appeal is high

•

(stems from brand umbrella of Haleeb)

•

Ranks high on hygiene

•

Pricing is very appropriate (as perceived by consumers)

WEAKNESSES •

Lack of availability at retail outlets

•

Lack of consumer awareness

•

Inadequate promotion campaigns

•

Poor on attributes of freshness, thickness and creaminess

•

In appropriate packaging color scheme

OPPORTUNITIES •

Lassi as a product category is well established

•

Lassi is liked for its taste, coolness and nourishment.

•

No established brand

•

The customers can mainly distinguish between Home-Made and Out of Home made Lassi

•

Lassi is considered a cultural drink.

•

Consumer is willing to pay more for value addition.

THREATS •

Lassi is perceived to have a sleep inducing effect

•

Lassi is not served to guests in modern households.

•

It is considered a cultural drink and doesn’t go with modern lifestyle

•

Competition from packaged juices & carbonated drinks

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•

Packaged Lassi would face mindset barriers specially on Taste, froth and thickness

TARGET MARKET Adult females and males (25-45 years): •

These adult females and males belong to the income group of SEC A & SEC B.

•

The adult females are mostly housewives, health and hygiene conscious and are expected to shop for monthly groceries themselves

Teenagers and College-goers: •

This segment also belongs to the income group of SEC A & SEC B and lives in different parts of Punjab.

•

These young people consume packaged or loose lassi during the summers.

RE-LAUNCH OF LABBAN POSITIONING •

To break the mind-set barriers of the consumers regarding the concept of packaged lassi

•

To position Labban in a manner that it is regarded as a product with the highest nourishment and cooling effect without any side affects.

•

To position Labban as a perfect substitute for fresh fruit juices and carbonated drinks

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PRODUCT • Change the packaging colour from bright green to a soothing creamy yellow • To achieve cost-effective printing on packaging • To increase the thickness/creaminess content of Labban by 10% • To improve the smell and colour of Labban to resemble home-made lassi • To introduce two variants in Labban–sweet and salty

DISTRIBUTION DISTRIBUTION OBJECTIVES (for the year 2012) •

To re-launch Labban in the cities of Lahore, Rawalpindi, Islamabad, Faisalabad and Gujrawala

•

Achieve trade penetration in 1500 outlets nation-wide by the year end 2009.

•

Increase focus on semi-urban areas

•

Increase retailer margins from 10% to 20% as par industry norm

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•

To achieve shelf-space of 5% (of packaged beverages) at eye-level in major retail outlets.

•

To convince retailers to place Labban in refrigerators (as par demand)

PRICE PRICE OBJECTIVES (for the year 2012) To maintain the price of Labban’s 250 ml pack at Rs 12 and its 1000 ml (1 Litre) pack at Rs 32 PRICING STRATEGY The strategy of maintaining the current price structure is followed as findings of the focus groups and consumer survey clearly indicate that it is very correctly priced i.e. neither under-priced nor over-priced.

BRANDING OBJECTIVES •

Pioneer the concept of Packaged Lassi by leveraging Haleeb brand Equity.

•

To play the role of aggressively developing and growing the Packaged Lassi market through consistent consumer, brand and trade activation.

•

To increase customer identification of Haleeb Labban

•

To induce customer loyalty and repeat purchase

•

Haleeb Labban Brand Personality can be described as Fun Loving, Trustworthy, & Friendly

SLOGAN The slogan that we have proposed for Haleeb Labban is “Must Maza Lassi say Milay”

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PROMOTION PROMOTION OBJECTIVES (for the year 2012) •

The promotional theme should carry a functional appeal that highlights the point of difference of high nourishment and cooling affect without any side effects.

•

Hygiene factor should be stressed to gain competitive advantage over loose ‘bazari’lassi.

•

Instore displays and sales promotions to retailers should be increased by 20%

•

Increase the number of print advertisements by 30% (billboards,banners,posters)

PROMOTION STRATGIES •

The communication would be based on Product Route i.e. highlighting the key features of the product:

•

Thickness, Frothiness, Creaminess

•

Two variants – Sweet and salty

•

Made from 100% natural milk and cream

•

Paint the towns with Haleeb Labban colors to create festivity and impact in the market.

•

Shop signage, shops banners, streamers, posters

•

Print and outdoor campaign highlighting functional/emotional benefits

•

Store intercepts, mobile vans carrying labban advertisements

•

Branded Kiosk – Labban corners

•

Stalls at selected shopping malls

•

Road side selling should be carried out in Lahore and Islamabad.

•

Selling at public places like parks and markets can be carried out.

Labban Breakfast Festival:

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Arrangement of a breakfast for families with Labban, Good day and halwa puri in a major park such as Polo Ground

CHANGING THE COLOR SCHEME

PROPOSED AD CAMPAIGN (Teaser)

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STREET BANNER

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