(AL-KAHAF)
Asia Ghee Mill (Pvt) LTD
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Asia Ghee Mill (Pvt) LTD
Preface
This report has been written on the basis of practice and observation during
Six weeks internship at Asia Ghee Mill (Majeed Group of Company) Pvt Ltd. I
have made all the possible efforts to include all the possible information available
from various authenticated sources of the company. Such report serve as an
important tool to keep the information that is acquired during the training
period.
Such report is made with an objective to enhance the practical knowledge and to
develop professional approach as a student of M.com every activity performed in
the company that is related to marketing is tried to include in such report. In
order to demonstrate the result of our research which we conducted to check the
consumer and brand equity with respect to consumer and retailer point of view
are plotted on graphs and figures which give clear idea of the various brands and
the reputation of the company.
It is also beneficial for the new reader that he can understand the report in first
reading because simple wording is used in expressing the each and every aspects
of the report so that to avoid any ambiguity and misunderstanding. I have tried
my best to present such report in a comprehensive manner.
Javed Amin
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Asia Ghee Mill (Pvt) LTD
Acknowledgement
First of all a great thanks to Almighty Allah, Who enable me to complete this
task and then I am thankful to my respected teachers Especially our internship in
charge SIR Dr. Zahid for providing such a friendly environment and guideline
during our stay at the university not only for the academic affairs but all other
social and other future prospective by sharing their remarkable experience.
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Asia Ghee Mill (Pvt) LTD
Dedication
I dedicate this report to my
Parents
Who are the great blessings of Almighty Allah for me. Their Love and
Affection always helps me to strengthen my academic carrier. And they have
been the greatest source of encouragement and motivation throughout my life.
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Table of contents
Sr. No. Contents
1 Preface 3
2 Acknowledgement 4
3 Dedication 5
4 Table of contents 6
5 Executive Summary 7
6 Introduction of Ghee Industry 9
7 Introduction to Majeed Group of Companies 12
8 Introduction of Asia Ghee Mills (Pvt) Ltd. 15
9 Vision and Mission Statement 19
10 Goals and Objectives 20
11 Corporate Level Strategies 21
12 Business Level Strategies 23
13 Operational Level Strategies 23
14 Hierarchy of Asia City Sales 25
15 Analysis Structure of the organization 26
16 Working of various Divisions and Departments 29
17 Marketing Mix of Asia Cooking Oil and Ghee 36
18
19
20 SWOT analysis 80
21 Suggetions and Recommendations 83
22 Conclusion 85
23 Annexure 93
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Executive Summary
Internship is an important part in the study of professional education and it became
more important when we talk about M.com degree so that student can get some
practical experience and become more valuable in the market due to some practical
experience so we cannot ignore the importance of an internship.
During the month of June, I joined Asia Ghee Limited and I was sent to the sales &
Marketing Department of the company to work as an internee. The business of the
company is purely equity based and company has no liability to pay in the future
course of time. As Asia Ghee Limited is a manufacturing company & therefore, it
manufactures Cooking Oil and Ghee.
There are many departments working under the keen supervision of its owner
Mr. Masood Majeed like Sales & Marketing Department, Quality Control
Department, Account Department, and Human Resource Department besides
Technical Department. However, the department which is found to be working well
and far beyond as it is expected of its Sales & Marketing Department. The function of
this department is to streamline the way through which different product brands of
Asia make their way to the marketplace. The specialty of this department makes it
differentiated to the other departments in the sense that the employees over there often
work beyond the call of their duties. They know no pain, no relaxation & no tiredness,
but what actually they know is to make their company outperform its competitors.
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Various brands of Cooking Oil & Ghee offered to the customers, entails important
features like Vitamin A, D and K with their respective benefits. It is worth mentioning
here that all the products manufactured on the production plants do match all the
requirements and standards of ISO 9000 and 14000, which have been proved as a hall
mark for the company itself. Moreover, the marketing mix of Cooking Oil & Ghee is a
mix of uniqueness and distinctions. Marketing mix includes price, promotion and
placement after the product mentioned earlier. All these aspects of marketing mix are
given complete attention that makes them work properly and above the set standards.
The report also includes a comprehensive research made on the domestic users of
Cooking Oil and Ghee besides keeping in view the significant value of retailers of
Asia Cooking Oil and Ghee. Different sort of results have been acquired through
analysis which let you know what actually the customers and retailers think of
available product brands of Asia company. From those results, one can really get a lot
of knowledge regarding the gaps which does exist between the ultimate customers and
the company and keeping in view their significance, the company can absolutely
rectify the problematic situation through which the customers are suffering from.
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Asia Ghee Mill (Pvt) LTD
The country which was self-sufficient in edible Oil production (0.154 million
MT), till 1960, and paying not a single dollar against the import bill, is today
importing well over 1.160 million MT against an import bill of no less than Rs.33000
million per year, being the third largest edible Oil importing country of the world,
after China and the European Union. All these imports originated from Malaysia.
The structure of Ghee/Oil industry is just like all the other developing industries
of Pakistan. There are certain well-established companies working with good brand
names, serving the nation as a whole. Along with them there are certain units, which
are working in limited areas, meeting the requirements of these niche markets. Some
of the vegetable Ghee mills are working under the control of government and other are
held privately.
The raw material required for the production of Ghee/Oil is imported from
different countries and this is the biggest imported item in food category. The prices of
Ghee/Oil are very much influenced by the duties on these imports and the international
price fluctuations of these items.
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In early 1990’s there had been a serious crisis in the Ghee industry, and the
main reason for this was that production of Ghee was greater than the demand. In this
period due to the heavy losses on account of these units government privatize so many
Ghee producing units.
Vegetable Ghee is the commercial term for vegetable Oil hardened by the process of
hydrogenation. Cottonseed, soybean Oil, Sun Flower Oil, corn Oil, is being mainly
used in Pakistan for the manufacturing of Oil/Ghee. Pakistan is importing Palm Oil
and Soybean Oil from America, Indonesia and Malaysia. During 1999-2000 Pakistan
imports of soybean Oil and palm Oil has drastically decreased both in quantity and
value. Pakistan imported soybean Oil worth $75.8 million and Palm Oil $267.8
million in year 1999-2000.
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In Pakistan ghee industry is flourished over the years. Today there are many Locals
and National companies as well as international companies engage in the production
of ghee and oil working in Pakistan. Among multinational companies includes Lever
Brothers (Pvt.) Ltd. They manufacture DALDA and PLANTA cooking oil and ghee.
Some other companies are as follows.
1) Al Hilal Vegetable Ghee Mills engages in the production of Sultan Banaspati Ghee.
It is situated in Multan.
3) Wazeer Ali Industries Ltd. engages in the production of TalloBanaspati ghee and
cooking oil. It is situated in Hyderabad.
5) Refahan Maize Product Company involved in the production of Rafhan Corn Oil
and it is situated in Faislabad.
Apart from these combines there are many other firms manufacturing ghee as Nasir
ghee in Bahawalpur local area like Asia ghee
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Bismillah Cotton Industries started its operation of Cotton Ginning in 1973 at that time
Bahawalpur was very backward area and it was third unit in Bahawalpur history. This
unit was nationalized in 1976 and denationalized in 1977. Bismillah Cotton Industries
got the status of Private Limited Company in 1985.
In 1985 second unit was developed and it also was related to the cotton industries. Up
gradation and modernization is regular feature of Majeed Group. Today Bismillah
Cotton Industries serves as a center for Research and Development for modernization
of Cotton Ginning industry of Pakistan.
Bismillah Cotton Industries had been a part of United Nation / Food & Agriculture
Organization’s program for Standardization of Pakistan’s Raw Cotton for seven years.
Almost 40% of Cotton Classers now serving or have served Pakistan Cotton Standards
Institute got their training at Bismillah Cotton Industries.
Almost all the international delegations visiting Pakistan in relation to Cotton, visit
Bismillah Cotton Industries.
Chief Executive of Bismillah Cotton Industries has the honour to be part of Pakistan’s
delegations to study cotton ginning, classing, trading and ginning machinery
manufacturing at Egypt, USA, China, Australia, Turkey and Uzbekistan.
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It is also a great honor for Bismillah Cotton Industries that its Chief Executive
represented Pakistan in Cotton Experts Group Meeting of Islamic Cotton Producing
Countries, organized by Islamic Development Bank, at Jeddah.
Asia Flour Mills started its operation in 1981 and got the status of Private Limited
Company in 1985.
Asia Flour Mills is the largest provider of Quality Wheat Products in Bahawalpur.
Asia Flour Mill’s products are trusted for quality and quantity.
“Rohi Cotton Industries:It is a Private Limited Company started its cotton ginning
operations in 1991 at a remote area of Head Rajkan.
“Asia City Sales” is responsible for marketing and sales of Wheat Products of Asia
Flour Mills and Ghee, Cooking Oil and laundry soap of Asia Ghee Mills.
Asia City Sales cater the needs of about 1,400 retailers of Bahawalpur City.
Dynamic sales team of Asia City Sales has to be in regular contact with all the
retailers and wholesalers for sales orders, regular supplies and recoveries. Sales team
is assisted by Base Office, Store and Accounts staff.
Majeed Group: As security is an essential part of the business and most companies do
contacts with some private companies for such purposes but Majeed group of
companies does not depend on security companies for security requirements. Majeed
Group has its own Security Department headed by an Ex-Army officer and consists on
Ex-Army men. Security department is responsible for proper security of all the
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premises of Group Member Companies, security of cash transfers and staff of cash
department. Training, refresher courses for security staff, exercises, periodical fire test
and test of ammunition are carried out on regular basis.
Mr. Chuadry Abdul Majeed is the chairman of Asia group of industries, who is one of
the best businessmen in Bahawalpur region.
MAJOR BUSINESSES
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Asia Ghee Mill (Pvt) LTD
Cooking Oil
Ghee.
The plants which have been installed for the manufacturing purposes are
imported from:
United Kingdom.
There are some other products also manufactured on this production plant unit such as
Soap, packing of Tins, etc. The production plants installed there have the capacity of
150 Tons per day. Almost currently plants utilize only 70% of the total capacity.
Moreover, the plants utilize 90% of the total capacity in the winter season.
The employees working merely in Asia Ghee mills are 100 in number holding
different posts and positions in the hierarchy of the company. Apart from these
workers there is some outsourcing of the labor as well for loading and unloading
purposes. The employees in Asia Ghee Ltd. are considered to be the best at their work.
Asia Ghee Mills has various departments like Sales & Marketing Department,
Accounts Department, Production Department, Technical Department, Commercial
Department besides security and quality department which would be discussed in
detail latterly.
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Asia Ghee Mill (Pvt) LTD
Asia Ghee Mills has achieved the mark of excellence and honor in the Bahawalpur
regions as its operations are right according to ISO 9000 & 14000. Whatsoever is
manufactured on the operating plants, nothing is thrown outside of the plant in form of
the wastes. That seems to be a purely environment friendly organization.
Asia Ghee Mill is situated 15km away from Bahawalpur at Karachi Road. This Ghee
and Oil manufacturing unit was established in 1994 and start production in 9 th June
1997.
a. Production Area
Non-production area consists of offices, parking facility, and a big lawn. In non-
production area they have their own nursery. Asia Ghee Mill has a very attractive
outlook because they have wide variety of plants and flowers in the lawn and nursery.
The office interior of Asia Ghee Mill is very good because the offices are fully air-
conditioned and heaters are also available in cold weather.
Asia Ghee Mill is not incorporated in Stock Exchange. Asia Ghee Mill has a capacity
of 150 tons per day but currently they are using 50% of their total capacity.
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PRODUCTS OF ASIA:
Asia Ghee Mill is manufacturing both Ghee and Oil. The brand names of the product
are given in the table along with their respective weights and prices.
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Laundry Soap
CO2
Asia Ghee Mill has sold the laundry soap under the brand name of “Asia Laundry
Soap” where as they dispose of the carbon dioxide into the air.
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Vision:
“Mr. Majeed is very social person and has an industrial mind, who always think
about the development of people of the country specially living in Bahawalpur
through the creation of employment and meeting their basic necessities of clothes
and foods (Flour, Ghee & Oil).”
“Superior quality products at affordable price for our customers, is our commitment.”
Proposed mission:
Asia Ghee Mill doesn’t have any written mission statement but through our discussion
we came at, and the mission of the Asia Ghee Mill should be:
“We care the health of our customers by providing them, wherever they live, the
superlative purity and best quality oil & ghee at comparable prices and continually
improve our products to meet their needs which help us to maximize the wealth of
owners who in turn, create more employment opportunities and provide maximum
benefits to employees”.
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Asia Ghee Mill (Pvt) LTD
The distinctive objectives of Asia Ghee Mill (pvt) Limited are categorically mentioned
as under:-
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Asia Ghee Mill (Pvt) LTD
CONCENTRIC DIVERSIFICATION
Asia Ghee Mills involved in concentric diversification because Asia Ghee Mills has
two by products, laundry soap and CO2 gas. Asia Ghee Mills has developed a setup to
sold laundry soap under brand name of “Asia Laundry Soap” so Asia Ghee Mills is
adding new but related products in to the market. Instead of selling laundry soap as a
raw soap to any other soap manufacturer, they themselves start cutting and packaging
of the soap and sold in the market as their own new products under their own brand
name. Then we said it concentric diversification because they manufacture the soap
from the byproducts they receive.
All the industrial units and business projects of Majeed Group were established
without any loan or bank borrowing. Group had been availing the bank finances for
operations of business till few years back when there was a change in financial policy
of the group. Now a day’s all of our Industrial and Business units are free from any
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bank loan and as policy matter Majeed Group is not involved in SOOD or RIBAH.
This is itself a tuff task of fund management for our management team.
BACKWARD INTEGRATION
Asia Ghee Mills involved in backward integration because they receive the cottonseed
oil from their own cotton factories. Although these three cotton factories provide only
10% of its total requirement but this will increase the bargaining power of the Asia
Ghee Mills if it has to negotiate upon the prices of oil purchasing from other factories.
OUTSOURCING
PROFIT MAXIMIZATION
To achieve maximum level of profits and benefits being the private limited company.
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DIFFERENTIATION STRATEGY
PRODUCT DEVELOPMENT.
Currently Asia Ghee Mills is following the product development strategy, because the
Asia Ghee Mills is continuously improving the quality of the ghee/oil for the
consumers. Asia Ghee Mills has a good image in the Bahawalpur, and they try to
develop the same good image in all over the country, so that’s why they are improving
their products through TQM. Production of fortified flour from wheat taken from
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different regions of Punjab in order to fulfill the deficiencies of iron in the human
body.
On time delivers
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Asia Ghee Mill (Pvt) LTD
Director
Marketing &
HR
Sales manager
Sales men
Helper to store
clerk
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Asia Ghee Mill (Pvt) LTD
1. Chairman
2. Vice Chairman / CEO.
3. Senior Executive Director.
4. Executive Director.
5. Director Taxation.
6. Director Marketing & HR.
2. Vice Chairman Mr. Masood Majeed being Chief Executive is responsible for
development of business strategies and planning for new projects and business, up-
gradation of existing projects with consultation from members of board of directors.
He is responsible for fund management, relations with banks, financial institutions and
Insurance companies. He is responsible to guide the members of board of directors in
discharging their responsibilities, to guide and check the performance of Team of
Managers and approve their rewards. He approves the hiring and firing of the senior
staff. He is responsible for overall supervision of Asia Ghee Mills and Bismillah
Cotton Industries. He is responsible for marketing and sale of cotton.
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He is responsible for all legal matters and relations with Bar Associations. He is also
responsible for, purchase of Transport Vehicles, procurement of special items such as
machinery, electrical and electronic items and costly equipments from out of city and
out of country.
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5. Director Taxation is responsible for, handling of all tax related matters such
as Income tax, Sales Tax, Filling of all tax returns and to supervise all legal
matters relating to tax. He is also responsible for relations with Chartered
Accountants, Auditors and Tax Bar Associations.
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Structure
Production
Manager
Tin shop
supervisor Production
Boiler Engineer Electric supervisor
supervisor
Helper Helper
Boiler engineer
Information of ghee and oil process raw material such as oil like palm oil,
canola etc is boiling at specific temperature. It is his duty to control this process.
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Production Supervisor
Production
supervisor
Gas plant
refinery filling ammonia
Assistant Assistant
operator operator
helper helper
GM Technical is assisted by
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Structure
Quality control
manager
Shift chemist
Lab attendant
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3. Commercial Department:-
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4. Accounts Department:-
Manager
account
clerk clerk
Supervise data entry of all the Vouchers in computer daily. Maintain the hard
copies of computerized Books of Accounts and Financial Accounts.
Guide and supervise the performance of the staff of accounts department
Supervise generation of the computerized Gate Passes, Delivery Notes and
Invoices of the customers for delivery of products in the light of delivery order
from the Commercial Department.
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Industry analysis:
Currently cooling oil and ghee industry is not in growth stage because it is necessary
thing for our society but due to inflation it is not consuming so much. Poor people
have cut down the usage of the cooking oil and ghee. Especially in bakery, sweet, fast-
food and other food related all are I recession and they are also heavy user of the
cooking oil and ghee. There are also increasing competition in the market due to
increasing number of the competitors, due to all this the industry now has become very
competitive and every competitors has some market share. They are trying to hold this
market share rather focusing on market development. Now industry is bringing some
changing and a lot competition coming on quality and health rather just focusing on
price factors because number of purchaser who wanted to have cholesterol free and
best for the health products are demanding.
Sales are decrease for the same period of time due to PEST factors. There is now sale
cycle city is prevailing in the industry at that moment due to high taxes, high interest
rate and economic crises over all the industry cooking oil and ghee at declining stage
if we see it as necessary good.
Sales seasonality:
Sales seasonality also counts in this industry. In the winter season the production and
consumption of cooking oil and ghee increase and in summer it decrease. Especially
consumption of the food related all the industries increases. So the cooking oil and
ghee is essential for them. On the hand consumption of these industries in the summer
decrease and it affect the sale of cooking oil and ghee.
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1. Product
2. Price
3. Promotion
4. Placement/Distribution
Now let’s take a look how the marketing mix of Asia Cooking Oil and Ghee functions.
1. Product
Asia Ghee Ltd. is selling two important products i.e. Cooking Oil and Ghee. The
company is making products right according to the demand of the customers and
also make value additions in a sequence in order to remain on top of the list in the
market competition.
It has been a hall mark for the company that the products which are being
manufactured on the operating plants are according to ISO 9000 & ISO 14000
mentioned standards. For this reason also, Asia is outperforming its various
competitors.
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Asia has a range of products available into the markets. These are highlighted as
under:-
Cooking Oil:
Ghee:
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The products of Asia Ghee Limited entails following important features and benefits:-
Features
It is worth mentioning here that Asia Cooking Oil and Ghee contains Vitamin A, D &
K in its various products. Moreover, the specialty of Ghee is considerably important,
Ghee products are manufactured on 37 Degree Celsius which helps a person to digest
easily and which keeps the person away from various chronic heart diseases.
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Benefits
Now the features of Cooking Oil and Ghee give the person many benefits in different
ways as follows:-
Act as anti-oxidant, helping to protect our cells against cancer and other disease
Vitamin A improves our vision and prevents night blindness
This vitamin promotes formation of strong bones
Vitamin A guards us against bacterial, viral, parasitic infections
Guards us against heart disease, stroke and lowers blood cholesterol level
It can improve skin condition like acne or psoriasis
A well-known wrinkle eliminator, vitamin A reduces fine lines in the skin and
helps fade age spots.
Vitamin A supplements may help kids who have respiratory problem
The supplement is also believed to help people suffering from glaucoma and
measles.
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Brand equity
Asia has strong brand equity in the Bahawalpur city; According to our research it is
founded that more than 50% cooking oil and ghee users are the loyal customers of
Asia Cooking Oil and Ghee. This is just due to the brand name which Asia company
has created so far in the market.
Packing
Although Asia using many packing in order to satisfy the needs and wants of the
different segments and it has successful achieve tier objectives in term of packing. But
still according to our research is founded that Asia should to change packing and
information on it, in order to it becomes more attractive and satisfactory for the
customers.
2. Pricing
Asia has the competitive pricing objectives and providing maximum and better quality
against its major competitors. In the southern Punjab market all the local brands have
similar almost similar prices and through price signaling they change the price, if one
competitor increase or decrease its other also do the same.
The main reason behind Asia is doing so because there is no significant difference in
the product brands of Asia Cooking Oil and Ghee and the products brands of its
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competitors. So it becomes easier for the customers not to give extra price for having
very little difference in the product.
Pricing strategy
Asia is using “Product Line pricing strategy” for its products, which means that one
products line pricing for example, the product line of 16 Kg Ghee Tin, differentiates
the prices of the product line of 5 Kg Ghee Tin packs. This strategy is the most
frequent used strategy for many FMCG’s (Fast moving Consumer Goods) products.
The objective of this pricing is to set prices in different way to different segments
which have already been made by the company keeping in view the characteristics of
its ultimate customers. For instance, Asia has made a segment of poor customers
which mostly rely on ¼, ½ & 1 Kg Ghee packs, so keeping in view the attributes of
this class of customers.
Asia has also made another segment of its customer on the basis of income level, for
instance the segment of customer belonging to middle class and monthly income
people. The customers of this segment do buy 5 kg, 10 Kg, 12 Kg &16 Kg Ghee packs
and Tins and in return Asia provides discounts to the customers of this segment on
buying these brands in bulk.
2. Promotion
One very important finding through our retailers and shopkeeper’s research, retailers
and shopkeepers said that if Asia will promote its brand more then it will become for it
to increase its sale.
The promotional campaigns from the side of Asia Ghee Ltd is a mixture of two
components i.e. above the line promotional activities which includes placing ads on
billboards in different phases of the Bahawalpur city with the combination of wall
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chalking and below the line activities which include sponsorships of Cricket
tournaments, flower exhibitions beside the cooking shows held in different time
periods in a year. Under the umbrella of below the line promotional activities Asia
Cooking Oil and Ghee is working on two aspects side by side i.e. Publicity and public
relations.
Publicity
Asia is now facing both positive as well as negative publicity. In positive they have
strong brand recognition in the customers and they ask other people for the high
quality of Asia and convince them to purchase this brand. Also due interest free and
religious organization factor as well as political background of the family by doing a
lot of social welfare schemes also increasing its positive publicity.
In the negative publicity factors come through its competitors. Especially they create
negative word of mouth against quality and work force in order to damage its brand
name and increase their sale by decreasing the sale of Asia.
Public Relations
One of the most important reasons of the success of the Asia is its long term public
relation with all its stake holders and it is also big reason of good brand name of Asia.
Asia gives very importance top public relation. As far as the public relations activities
are concerned, they invite common people to visit their production plant units which
give awareness to the people and which finally creates positive word of mouth for the
company. Moreover, they raise funds in form of charity for the poor people by using
their company names. This charity money is collected either through conducting
different sports events or by some other means.
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Though Asia Cooking Oil and Ghee is a local brand of Southern Punjab, still it does
not promote their products’ features and benefits as they should be. The responsibility
of lack of promotion goes on to the management of Asia Ghee Limited. Unless or until
they don’t come up with better promotional campaigns throughout the city, it would
be difficult enough for the company itself to educate its customers well about the
features and benefits of Asia Cooking Oil and Ghee product brands.
Billboards
Wall chalking
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4. Distribution
The distribution of Asia Cooking Oil and Ghee is made through two distribution
channels
In Bahawalpur city Asia Ghee Limited Asia ghee mills limited has its distribution
channels. Through its sale workforce Asia create sale like they send the sales people
at shop and gets order from them and they make sure on time delivery by developing
long term relationship with them.
They are making fruitful use of direct selling with the help of their motivated
and diligent workforce, for instance direct selling made in Ramzan Bazars.
Second source of the distribution of Asia is that they make contract with the
distributors in order to sell their product, in this way Asia give profit margin. They
consider as main source for the Asia products availability to the retailers. There are 41
distributors of the Asia ghee mills limited. Distributors do the following thing s for
the Asia ghee mills limited.
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They try to build long term relationship between the company, retailers and
the final customers.
They provide optimum value addition to the retailers and the final customers.
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INTERNAL ANALYSIS
STRENGTHS
The Company has most recently introduced its own solvent Plant
Excellent advertising and promotional activities which attract consumers
Adequate financial resources based only on equity
Well co ordination between departments
Having durability and brand name and loyalty of customers
Having wide spread and good distribution channel
Internal supply system.
The time period for Account Receivables is very low which provides the
company with the opportunity to keep the cash in hand.
The customers of Asia are seemed to be loyal to its various product brands.
Asia has got built strong brand recognition in the market against its competitors.
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The value addition concept is followed at all levels of the organization which is
Weakness
The productivity of Asia despite all efforts remains the same or sometimes low.
Company can also outsource the working of R & D from other companies
which can create a differential advantage for its products.
Making contracts with utility stores can also be considered as an opportunity for
the company.
External analysis
THREATS
There are also electricity problems during the production of Cooking Oil and
Ghee.
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Opportunities
Labor outsourcing
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They do not compensate the retailers of rural areas with the same way as in
urban areas due to high competition if they do not change their strategy it will
create problem for them
Top management should give autonomy and the flexibility to every manager to
make decisions according to the situation at any time in the absence of top
management.
The company should make it possible to deliver the goods to the buyers at the
agreed time.
They do not offer credit sales even to key customers due to which there is
chance to lose key customers so they should do relaxation in sales.
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Conclusion:
Internship is a first step in practical life related to our conventional studies which we
are receiving at the door step of university. It accounts a lot of importance in our life
because during the studies the vision of our minds is not as that much broad & clear as
it get developed right after taking the first step into the practical life .
Asia Ghee Mills (pvt) Limited is a private local Mill in Bahawalpur and it can be said
as one of the flourishing strategic business unit of Majeed Group of Industries. Asia
Ghee Mills Limited was established in 1997 under the company ordinance 1984. The
owner of Asia Mills Limited is Ch. Abdul Majeed. The company is located on Ahmed
Pur Road having territory radius of almost 100 Kilometer. Asia Ghee Limited is
considered to be a wholly manufacturing company working in the southern Punjab. Its
main two manufactured products are Cooking Oil and Ghee which is manufactured on
the Uk based production plant whose total capacity amount to be 150 Ton per day.
However, the plant usually utilizes at this time at full capacity of its total capacity.
There are also so many other products which are made besides the manufacturing of
Cooking Oil and Ghee like Soap, etc. while it also creates CO2 gas in their production
plant..
The company has many departments being supervised by different people like
production department, commercial department, technical department, accounts
department, etc. They department are also interlinked with each other because each
work will start with the end of other department. These responsible for creating the
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goodwill for the company as a whole. These departments are assigned their respective
responsibilities and duties.
Production of Asia Cooking Oil and Ghee is performed according to the international
quality standards like ISO 9000 and ISO 14000 which is a feature for the company
itself. However, the company has not registered itself on ISO standards due to some
technical difficulties in the documentation process but still the company aspires to get
itself registered to these standards. In view of these standards, whatsoever is
manufactured, its wastes are not thrown outside the boundary of the production plants
like into canals and rivers flow in the region of Bahawalpur. Apart from that aspect,
the production of both Cooking Oil and Ghee is performed including no human
interaction. Each and every product is manufactured by the machines installed in the
production plant human interaction is only with the machines which are working
automatically and on the quality control and also see the working of the machine and
if there is any fault to remove it also will be handled by the human interaction.
Asia Ghee is targeting the customers on the base of segment on income level. Keeping
in view the characteristics of the customers with the same segment, products are
designed & provided to the customers through whole seller and retailers. It has a wide
range of product available into the market like in the product line of Ghee there are
different sku’s are available like ½ Kg, 2.5 Kg, 5 Kg, 12 Kg & 16 Kg Ghee Tins
according to the needs and wants of the customers. Low quantity ghee is designed for
the low income class people and brands with large quantity are made for the rich
gentry who consumers Ghee more frequently than those who do not. Same is the case
in Cooking Oil different sizes are available keeping view the Cooking Oil and Ghee
like Vitamin A, Vitamin D and Vitamin K provides lot of benefits to the customers.
Like Vitamin A improves ones vision and saves the person from night blindness, it
promotes formation of strong bones; it saves us from bacteria, viral and heart diseases
as well at the same time. In the same manner, Vitamin D helps in the process of
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calcification and characteristics of the ultimate customers like they are manufacturing
1 Liter, 2 Liters and so on, in form of Tins, pouches and boxes.
Vitamin K used in it specialty of Asia Cooking Oil and Ghee is that the features of
Vitamin K helps to remove the diseases of newly born children. These are the benefits
which the customer of Asia Cooking Oil and Ghee may get while using it in its
edibles.
Production department is responsible for the designing of the packing of Cooking oil
and Ghee. This saves their lot of additional cost which they would be giving to outside
companies. Moreover, during the manufacturing of packing the quality and durability
of packing is consistently observed and followed. According to the research, majority
of the customers living in Bahawalpur and its outskirts are not yet so much satisfied
with the packing according to them there is improvement necessary for it.
ASIA GHEE MILL (PVT) LTD. The summary of the survey shows that 67.2 %
shopkeepers are satisfied with the profit margin and the remaining 32.8 % are not
satisfied by the profit margin of the products.
63.9 % shopkeepers are satisfied with the discount on product and the remaining 36.1%
are not satisfied. So we conclude that mostly people are satisfied with the discount on
the products.
90.6 % shopkeepers are satisfied with the behavior of the workers of the company but
remaining 9.4% are not satisfied. So the survey summary shows that a large amount of
the shopkeepers are satisfied with the behavior of the workers of the company and a
little bit people are not satisfied.
85.0% shopkeepers are satisfied with the price of the Company’s products but
remaining 15.0% are not satisfied. So the survey analysis shows that a large amount of
the shopkeepers are satisfied with the prices of the products of company and a little bit
people are not satisfied.
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94.4% shopkeepers are fully satisfied with the quality of the Company’s products but
remaining 5.6% are not satisfied. So we can say on the basis of our survey that the
shopkeepers are fully satisfied with the quality of the products of company and a little
bit people are not satisfied.
81.7 % shopkeepers are fully aware with buying behavior and the remaining 18.3% are
not fully satisfied. So we can say on the basis of our survey that mostly shopkeepers
are fully aware with the customer buying behavior.
87.8% shopkeepers are fully satisfied with the packing of the products and the
remaining 12.2% are not fully satisfied. So we can say on the basis of our survey that
mostly shopkeepers are fully satisfied with the packing of the products.
91.7% shopkeepers are fully satisfied that products are good for health and the
remaining 8.3% shopkeepers are not satisfied. So we can say on the basis of our survey
that mostly shopkeepers are fully satisfied that products are good for health.
98.9% shopkeepers are fully satisfied size of the products and the remaining 1.1%
shopkeepers are not satisfied. So we can say on the basis of our survey that mostly
shopkeepers are fully satisfied with the size of the products.
68.3% shopkeepers are agreed that new technology improve the standard and quality
of the products and remaining 31.7% people are not satisfied.
79.4 % shopkeepers give view that Asia should give some creativity activities
organize seminars to the customers and retailers that have directly impact on the sales
but 20.6 % are not agree on that veiws
87.8% shopkeepers said that they received the products in time and the remaining
12.2% are not satisfied with the delivery of the products.
84.4% shopkeepers said that the customers decide to make regular use of products
and the remaining 15.6% are not satisfied with this option.
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81.7% shopkeepers said that the customers are purchasing the products frequently and
the remaining 18.3% are not fully agreed with this statement.
62.2% shopkeepers said that the products of ASIA GHEE MILL (PVT) LTD are of
international standard and the remaining 37.8% are not agreed with this statement that
the products are of international standard.
90% shopkeepers Said that ASIA should use the cooking shows in televisions as the
tool for advertisement that have a positive impact on the sales and the customer
relationships and dealings and 10% are not agreed.
In this report the marketing mix would let you know how the efforts are being put
forth in regard of marketing aspects. It is certainly known that marketing mix
comprise of product, price, place and promotion. The products of Asia Cooking Oil
and Ghee have already been discussed. So as far the other aspects are concerned, these
aspects do possess considerable important of the management. Pricing of Asia
Cooking Oil and Ghee brands is competitive pricing and premium pricing. That means
as the competitor sets the prices of its products so would be the prices of products of
Asia Company. This concept is usually known as price signaling which dictates a
company to follow the pattern of prices of its competitors. So it means that the signal
of changing price will also directly affect the strategy of other firm.
Promotion is doing them by two ways the first is above the line promotional activities
and the other is below the line promotional activities. Above the line promotional
activates entail advertising on Bill boards, wall chalking, etc. while in below the line
promotional activities, the company conducts so many social activities like sometimes
it sponsors Cricket match tournaments, cooking shows, flower exhibitions. The basic
purpose of such kind of promotional activities is to make its customers fully aware of
their products and the company in some way.
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The distribution is also important like other elements of marketing mix. Asia
Company has an effective and efficient distribution network channels and a proper
team of sale people. There are 41 distributor of Asia Company. Moreover, the sales
team has divided the Bahawalpur region into 8 circles and thus it becomes very easy
for the company to access the demands of the customers and equally facilitating the
retailers with supplies of.
Cooking Oil and Ghee and asking their problem if they are facing in any way. There
are also responsible to handle various complaints that arise from the side of the
customers. However the results of the research that has been conduct on the domestic
users of Cooking Oil and Ghee, it is found the propensity of making complaint is
considerably low. The only complaint which comes to into the notice of retailers and
finally to the sales people is of packing. Sometime the packing gets leak and creates
problem for the customers.
Employees at Asia are taken as valuable assets for the company. The management
seems to be very considerate on the issues related to the employees better and
development in every aspect. There are total 100 employees working in Asia Cooking
Oil and Ghee holding different positions & responsibilities. Moreover, the company
takes the stance for its employees and tries to facilitate their families also so that when
they come to work they feel free from all problems and difficulties and could show the
best result in the organization.
A comprehensive research has been conducted over the domestic customers of Asia
Cooking Oil and Ghee so that we may get to know what actually the customer thinks
of the company, its products and its operation in the market. Many of the results have
been taken which over all concludes that mostly people use Asia Cooking brands in
their edibles as well as for their domestic usages.
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For the strategic point of view mothers are known as the decider in the purchase of
Cooking Oil and Ghee. All that is needed to put consistent focus on the mothers
among the family members. It is estimated that Dalda Cooking Oil is the serious
challenge for the company as it also acquire those features which are acquired by the
product brands of Asia Company besides maintaining high quality standards. Though
Asia is the market leader in the competitive position prevailing in the marketplace yet
it should try to capture as much market share as it is possible for them. For this reason,
the perceptions of the mothers are needed to change so that the negative perception
that is developed in the minds that Asia is a local brand and it does not according to
the health standards, can be altered. In this regard, the company should invite the
general public particularly the mother on their production plants where products are
manufactured, so that they may see the process of making Cooking Oil and Ghee
themselves and may also know that being the local brand, the brands of Asia are not
low in quality, tastes and designs as compare to the superior brands like Dalda, Eva,
Sultan, Etc.
Retailers are unhappy with the Asia Ghee because they are doing credit based business
that creates a problem for the retailer in order to make purchases with the Asia Ghee
Mill (pvt) Limited. The management is also right on their part, as the company is
wholly equity based and it has nothing to pay in term of liability to anyone. However,
it is also need that the company should take the risk and allow the retailers who tries to
sale a lot of quantity of Asia Cooking Oil and Ghee, to make purchase on credits. This
might also increase the sales of their brands and this may also reduce the market share
of its competitors in a way that the retailers are also considered to be creating positive
word of mouth for the companies’ products. They may also convince the customer to
buy the product of Asia instead of buying other brands of Cooking Oil and Ghee. If
they take another measure as well with this move, that may also give them lot of
benefits. The company should also expand the time period in which the retailers have
to make the cash payments to the company for the products they have already taken on
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credit. The relaxation on payments would help the retailer in different ways and this
would finally help itself to capture a large number of market shares.
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