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Executive summary

Haleeb Foods was established in 1983. Since then it has continued to


provide quality products to its customers with products and packaging
innovations. Haleeb is Pakistan’s number 1 and fastest growing food
company. The company is trying their level best to differentiate
themselves from other local companies and trying to win the
competition in juice industry by adopting the modern trends and
technologies in both operational fields as well as in marketing of their
products.

This project report covers the broad area of impacts of


controllable and uncontrollable variables in remote environment for the
company, like economic boom or slump, segmentation on the basis of
cultural likings and disliking of the consumers along with the social set
up and their purchase behavior, food laws, taxation, import duties and
the technological advancements. This report also provides the
information how these variables pose threats and offer opportunities for
the company and how the company should neutralize threats and
exploits opportunities.

An important part of this project report comprises the market


situation in which Haleeb is competing. Market acceptability of its
products and the upcoming trends regarding to juices and drinks are
also discussed. A detailed information about competitors like Nestle
which is also the market leader and Shezan, and how they are affecting
the company is also provided. An overview of distribution system and
criteria of Haleeb in case of juices. A brief description of the company’s
marketing, non marketing and management’s capability is given which
tells us about the company’s internal strengths and weaknesses.
40

P
Paaggee
Then comes the most important portion of the company’s
operations, which is the strategic management of marketing mix I-e 4Ps.
A comprehensive detail is provided about the company’s strategies
devised to maintain and develop the product line (juices), strategies to
set and quote the prices, their distribution patterns and logistics. The
image Haleeb wants to develop in the minds of their customer and the
extent to which they are succeeded through their promotional
campaigns is explained in this report.

The future expectation and objectives about the company’s financial


position for next few years and the ratio analysis helps us to conduct the
budgeting for the company. An additional portion of this report
including the swot analysis, twos matrix, CPM, QSPM and others explain
the strategic position of the company.

Haleeb Foods has built yet another plant in Rahim Yar Khan whose
purpose is to provide Haleeb’s quality products to maximum number of
consumers. And a plan to extend their product line in case of juices and
has an intention to introduce new flavors of pure juices, nectars and
juice drinks.
Introduction of HFL:
HFL is now one of the fastest growing packaged food companies in
Pakistan with an annual turnover of Rs. 9.2 Billion (F2006). It is a
private limited company. It started commercial production in July 1987.
Due to consistently superior performance, it has achieved undisputed
leadership in the liquid packaged milk category with a market share of
over 52%. HFL has a very strong brand portfolio consisting of dairy as
well as non-dairy products.
Haleeb Foods has segmented its product portfolio in 3 leading brands
including Haleeb, Candia and Tropico. Haleeb is the flagship brand of
the company. Haleeb UHT Milk is available in 5 Sku’s of Tetrapak
packaging. Due to its strong positioning of the thickest milk for best tea,
it has the highest top of mind awareness and penetration in the dairy
industry of Pakistan. In order to increase consumer and trade
penetration of the brand, it is also available in Tetra Fino Packaging
under the brand extension of Haleeb Dairy Queen.
Haleeb has also progressively diversified from UHT Milk to other
product categories as well. These product line extensions include Haleeb
Butter, Haleeb Yogurt, Haleeb Cream, Haleeb Labban (Drinking
Yogurt), Haleeb Asli Desi ghee (Butter Oil), Haleeb Funday Juice Drink,
Haleeb Skimz (skimmed milk), Haleeb N'Rish Full Cream Milk Powder &
Haleeb Good day Pure Juices. Haleeb Good day is the only range of
100% pure juices in the country with a variety of 6 pure juice flavors.
Haleeb Foods, having a Franchise agreement with Cadillac France,
launched Candia Double Sterilized Milk in bottle format in April
1999. Candia is also available in the Candia Classic variant which is
positioned for Tea. Another recent initiative is Candia Candy Up,
which is flavored milk for children.
HFL has one of the largest nation-wide distribution networks
delivering high quality products, even in the remote areas of Pakistan.
With a network of + 1100 distributors the company ensures that the
product range is available in all the urban and semi urban areas of
Pakistan. Furthermore, concerted efforts are being made to develop
the rural market as well.
HFL has an efficient and resourceful Export department, which has
successfully tapped opportunities in foreign markets including
Korea, Hong Kong, USA, UK, China, Afghanistan, Bangladesh and
the Middle East.
In order to provide best quality products to its consumers, HFL has a
well-developed supply chain infrastructure. It has heavily invested in a
vast network of company operated milk collection centers across the
country. HFL has a strict and stringent quality policy regarding intake
of raw milk. It is the only company that conducts 21 rigorous quality
tests to ensure that only fresh milk of the highest quality is accepted at
the plant premises. These internationally recognized tests are used to
check for: a) adulteration, b) microbiological contamination and c)
adequacy of nutritional contents. Further, Haleeb Foods is the only
food company in Pakistan that has the following international
certifications of quality and prestige:
~ •HACCP (in process controls for safer products)

~•ISO 9001 – 2000 (better quality for greater customer satisfaction)

~•ISO 14001 (environment-friendly operations)

HFL believes in using cutting edge processing and packaging


technologies to meet consumer expectations of hygienic and high
quality food products. It has more than 30 Tetra machines for its UHT
milk brands and 5 UHT units with a capacity of producing more than 1
Million Liters of Milk everyday. Keeping in view the volume potential
and increasing growth trend of the market, the company has recently
inaugurated a second independent UHT plant at Rahim Yar Khan.
Haleeb Foods has a highly professional management team with a
progressive operating style. The management team comprises of
highly seasoned professionals with diverse global experience of
managing and developing brands. It can lay claim to be one of the
very few Pakistani organizations, which are truly following the model
adopted by globally successfully corporations, with clearly defined
roles for shareholders and the management team.
The company takes pride in being a model national organization
delivering international quality products and higher value for money to
its consumers. The management team at HFL strongly believes that
Pakistan offers enormous potential for food business due to a
large consumer base, high acceptance of packaged food, and a
growing urban middle class consumer segment.

History:
Haleeb Foods Ltd. was incorporated on July 1st,
1984 with a
capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was

renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited.

At that time it had the capacity of producing 80,000 / liters of milk per day having

total area of 32 acres. Initially 150 people were employed at the plant. The production

process started with UHT liquid milk. The liquid milk was the first product launched

in the market, it started its operation in 1985 at that time 20 other dairy plants were

also coming in, and all those including MILKPAK were using obsolete technology

that was used in EUROPE. Haleeb Plant was the only plant based on the latest

technology and the basic idea behind that were particularly dairy foods products.

Haleeb is one brand that is toady known everywhere.

From November 1989 till December 1991 Haleeb had a joint venture with fries

land Frico Domo of Netherlands. This joint was amicably dissolved on account

of FFD's change in
management in their global strategy. Today as an ISO 9002 certified company, Haleeb is the

dominant market leader of UHT milk in Pakistan by capturing 52 % share.

Franchise agreement with Canada, a market leader in the liquid milk market in France, was

assigned in December 1998. Under this arrangement, the company launched Candia range

of value added liquid milk product and also have assess to latest production, technical

and marketing know how. Initially company launched different products but some

of them could not become successful. As the company's core concern is quality

eventually company abandoned products that were not according to the market

needs. In 2002 the company contributed 54% to the country 's packed milk market.

Haleeb Foods was established in 1986 as a private limited company and its first
product was Haleeb milk. Since then, it has continued to provide quality
products to its consumers with product and packaging innovations. Other
products and their dates of launch are as follows
Ye ar of L au nc h of the Pro du c ts:

1997 Haleeb Asli Desi Ghee


1998 Haleeb Cream, Candia Skimz Milk Powder
1999 Candia Milk, Candia Skimz Liquid Milk
2000 Tropico Juice Drink, Haleeb Dairy Queen

2001 Haleeb N'rish Instant Full Cream Milk Powder


Haleeb N'rish Fortified Instant Full Cream Milk
2002 Powder

Candia Tea Max Dairy Whitener, Haleeb Butter,


2003 Haleeb Plain Yogurt, Haleeb Lassi Drink

Haleeb Good Day Pure Juice, Haleeb Fun Day Juice


2004 Drink, Candia Candy'Up Flavoured Milk

Haleeb Cream With Honey, Haleeb Tea Max with


2005 Cardamom, Haleeb Labban, Haleeb Good Day(Mix
Fruit, Red Grapes, Mango Pineapple)

Haleeb Reshmi Pack , Candia Classic , Skimz Pouch ,


2006 Tropico Nectar

2007 Haleeb Cheddar Cheese


Information about Haleeb Foods

Legal Representative/Business Owner:

~ Mr. Suleman Daud

Board of Directors:

Mr. Ilyas Chaudhry


Mr.Israr Ahmed
Mian Zahid Saeed
Mian Muhammad Amjad
~ Sheikh Muhammad Rasheed
Major General (Retd.) Shafiq Ahmad
Mrs .Nasreen Ilyas
Mrs. Zarina Saeed
Mr. Muhammad Ishtiaq Khan

Chairman:

Mr. Ilyas Chaudhry

Managing Director:
Mr. Israr Ahmed
Auditors:
Hameed Chaudhry and company

(Chaudhry Accountants)

Legal Advisor:
Hassan and Hassan Advocates

Marketing Research:
Aftab Associates

Advertising Agency:
Paragon Evernew Concepts

Trade & Market:

Main Markets: Pakistan, North America, South America,


Western Europe, Eastern Europe, Eastern
Asia, Southeast Asia, Mid East, Africa,
Oceania
Work Force:
It has a team of 3000 exceptional individuals to support its
operations, out of which

~ 900 are permanent employees ~


600 are on contract and
~ 1500 are of 3rd party

Market Share:

Haleeb foods is Serving 70% of the nation of Pakistan.

Area:

The total premises area of Haleeb foods Rahim Yar Khan Factory is
about 72 acres. Plant & offices are situated at 20 acres. The remaining 52
acres are vacant and for expentation purpose.

Distribution Channels:

Haleeb foods is not directly selling the products. It has distribution


channels. Firstly Haleeb foods supply their products to
their distribution channels and then products delivered to the
customers.

Position of Haleeb foods:

Haleeb foods, the largest dairy company in Pakistan. The company


also operates as a franchise of Candia Cedilac of France.
Competitors:
Haleeb foods competitors are:
Location
Nestleof Offices & Factory:

Good Milk
Head Office:
Olpers Shehzan
135 ferozpur road Lahore 5460 Pakistan
Phone +92 42 111 135 135

Fax +92 42 759 0376

Regional Offices:
Lahore,
Rawalpindi,
Karachi,
Peshawar,
Quetta,
Rahim Yar Khan, Dubai.

Location of Factory:
There are two plants of Haleeb foods

i. 62-km Multan road Lahore, Near Bhai Pheru


ii.22-km kLP road R.Y.Khan

International Certification:

Haleeb Foods is the only food company in Pakistan that has the
following international certifications of quality and prestige:
HACCP (in process controls for safer products)

ISO 9002 (better quality for greater customer satisfaction)

ISO 14000 (environment-friendly operations)

Haleeb’s Policy:

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.

Meet the requirement of all relevant legislation and regulation related


to consumer satisfaction & safety, environment and other applicable
laws etc

To prevent pollution through controlling levels of harmful emission,


effluents and other wastes.

Contribute to safe and healthy environment for our country.

Promote mutual trust with customers, suppliers, employees,


shareholders and community.
Ø Provide all the necessary resources for the continual improvement in
quality, safety of our products, processes and environment.

Organ gram of Human Resource Department


G F i n c
Manger )

nzeela Rafiq
hj
(Asif Habib)

BRAND PORTFOLIO OF HALEEB FOODS LTD


A Haleeb food is a customer oriented organization so it is
manufacturing the products for every kind of consumers. Haleeb foods
have a very rich brand portfolio with national and international brands.
In order to provide their customers the wide range of products Haleeb
Foods Ltd. is using every kind of management strategies like it was
having a merger and franchise with two foreign companies.

One of the core competencies of Haleeb foods is their variety of


products that they are using branding strategies in order to compete
with rivals of dairy products, multi branding, brand extension and line
extension. The wide range of products of Haleeb foods is the major
contribution towards the success of the company.
Haleeb UHT Milk

Good Day Fruit Juice Tropico Juice Drinks


Dairy Queen UHT
mil k
Skimz Milk
Manufacturing process at Haleeb Foods

Haleeb milk is not actually made but it is processed milk. We


collect raw milk from approved dairy farms and process it ensuring the
highest standards. Some people think that perhaps Haleeb milk is made
from chemicals or synthetically but this is not true.

Following steps are including in the process of Haleeb Milk.

1.Collection of raw milk


2.Testing milk at the plant reception
3.Pasteurization
4.Standardization
5.Homogenization
6.Sterilization
7.Ultra Heat Treatment (UHT)
8.Packing
PROPOSED VISION STATEMENT

It is our vision to be the best and leading provider of food


products in Pakistan and among the top ten food companies
in the world, by continually challenging present conventions
and always staying a step ahead of the competition.

PROPOSED MISSION STATEMENT

It is our mission to be the number one food company in


Pakistan by providing our customers with the highest
product quality in terms of taste, experience, and
satisfaction. We will ensure this through an unwavering
dedication to the continuous development of our products
and processes ensuring that we remain best in class. We will
strive to hire the most competent and dedicated employees
whose work ethic will set the standard in the industry. We
will be paymasters, as we strongly believe that human
resource is the only asset that truly appreciates over time.
We will also be a responsible social corporate citizen, and
strive to enhance the quality of life in the markets we serve.
External environment – remote
environment

Economic forces

Scenario

UInflation & Interest Rate:

Now in Pakistan inflation rate is almost 9% so if increase in inflation


rate then increase in prices of HALEEB JUICES but if in Pakistan
economy deflation when no decrease or effect on prices of HALEEB
JUICES. About interest rate HALEED FOODS has own equity so no
pay any interest.

Personal Saving Rate:

Personal saving rate of HALEEB is 5%

Disposable & Discretionary Income:

Disposable & Discretionary Income of HALEEB is 95%.


Business Saving Rate:

Business Saving Rate of HALEEB is 10%.

Energy Availability & Cost:

Energy is easily available and cost on energy for HALEEB Rs.50m.


Budget Deficit OR Surplus:

There is no deficit but 8% surplus of HALEEB.

Rate of risk:

For HALEEB FOODS Rate of risk is 5%.


Overall HALEEB FOODS business cycle :

BUSINES LIFE CYCLE


Implications

Opportunitie Rati Threats Rati


High 5 ng New rivals 5ng
Low tax rate 2 Strong competition 3
Economic development 3 Increasing rate of 4

Rating: 5-point scale degree of significance and for likelihood of


occurrence: ‘extremely significant’ (5), ‘quite to highly significant’
(4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very
significant’ (1).Probability of occurrence: Ranging from ‘high
probability of occurrence’ (5) to ‘not likely to occur in this time
horizon’ (1). For example a rating of 5–3 represents an

# extremely significant opportunity or threat that has a reasonable


P likelihood of occurrence.
Porter’s five Model

1) Threats of new entrants:

There are following barriers of entry for new entrant foe juices in
market.

·Accesses to distribution channels are very high form


all companies exist in market.

·High capital requirement for new company to enter


in market due to high competition

· Product differentiation is good feature from all


companies which is also a barrier for new comers.

2) Bargaining Power of supplier:

Suppliers of the raw material of juices specially of Plump of


fruits are powerful in following points:

They are dominated because they are few numbers.


Their product is very important input of Haleeb juices.
Supplier product has high switching cost for Haleeb
Food Company.
Supplier of Haleeb juices plump has no substitude

3) Bargaining Power of buyer:

There are in following point Haleeb food company is


strong
Haleeb present the threat to supplier of backward integration.
Haleeb food purchase plump of different juices from different
companies so Haleeb purchases are more as compare to one

supplier.

4)Threats of substitude products:

There is only one threat for juices of Haleeb in substitude


products that is cold drinks in form of Pepsi and coca cola
Pest Analysis:

P O L I T I C A L C O N D I T I O N S : The political conditions are not very stable in the country,

but this does not directly influence the trends and spending patterns of the customers. There are

no restrictions or barriers on the growth of this industry. So the political conditions are

favorable fir this market because food and dairy chain products are consumer goods and they

have to purchase it in any condition.

ECONOMICAL CONDITIONS:

The economical conditions are not very favorable and the economy is facing problems, but it
is nit directly influencing buying power of consumers. If the country is out of its current
problems, it will further boost up growth of this industry, as people will feel more secure
economically and it will further increase the attractiveness of the market.

SOCIAL CONDITIONS:

The social patterns are changing in the country, as the world is becoming a global village, and mutually
share and accept patterns. People are becoming more attractive towards the branded

products. It is becoming fashion and young generations as well as the children are getting more
attracted towards this industry. People are moving towards branded food / dairy products due to

hygienic reason.

TECHNOLOGICAL CONDITIONS:

High technology is the basic requirement of dairy and food industry. The companies that
are using latest technology have some cost benefits over the companies, which are not
using high technology. The key to survival for companies in this industry is using high
technology for quality and cost purposes.

SWOT Analysis
Strengths:

Haleeb Foods is the largest National Food Company.

Strong brand loyalty of customers of Haleeb company.

Haleeb Company has monopoly situation in different flavors of pure


juices.
Haleeb foods have best distribution channel in all over the Pakistan.

Haleeb offer high quality products especially pure juices in market.


Management team of Haleeb Company is very strong and educated.

Haleeb foods have strong positioning in customer mind.


No 1 dairy company

Efficient Distribution networks through out the country

~ Haleeb Food's products enjoy strong brand image and market pull.

Innovative and constantly growing product line.

~ Sales force is the major resource strength in terms of physical resources of the
company.

~ Marketing strategies established by the company are innovative and lure customers.
Financial, marketing and sales strategies are formulated by gauging the customer
demands.
~ Periodic research carried out to judge market

trends. Highly sophisticated plant and equipment.

~

~ Qualified work force.

~ Focus on research and development.


~ First and the only dairy company in Pakistan to get ISO 9002 certification.

Weakness:

L
Less product awareness in customer mind.
Packaging of juices product is not good, and not so much attractive.
P
Haleeb company has very high prices in pure juices like apple, pineapple,
mix fruit, red grapes mango flavor.
m
Haleeb Company conducts less promotional activities for its juice
p
products.
Less display centers use for juices products in main shops of different
c
cities.
Haleeb Foods Company has late recovery of claims.
H
R
Relatively a small and local company in comparison to its rivals.

~D
Dependence on 3rd party for supply of milk.

N
No credit sales.

~L
Low sales margins due to highly value added products.

They cannot launch many of its expensive international brands due to the lower
iincome groups.

S
Selective investment due to uncertain economic and political conditions.

~ Feasibility of new products needs to be analyzed, e.g. Candia Drinking Yogurt


was launched some years back but it failed because no customer demand exist it.
w

The packing line installed for N'Rish has a higher capacity than the actual demand
o
of the product, resulting in higher overhead costs for the product.

~I
Inadequate marketing.

~L
Low promotional activities.

Comparatively weak distribution system.


Opportunities:

T
There are a lot of untapped markets in different areas of Pakistan.
The concentric diversification in different juices products.
T
Backward integration can use in juice products of Haleeb Company.
B
Haleeb Foods Company can become multinational and can target
different market of different countries.
d
Pakistan is the seventh largest producer of milk in the world with annual output of over 22
b
billion liters.

There are substantial growth opportunities considering the average yield of Pakistani
animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in
Europe and USA. There are nearly 20 million milk producing animals in the country,
mostly in Punjab (80%).

•The overallmilk market in Pakistan is 20 billion liters, out of which processed milk •
contributes only 3 million liters. Haleeb Foods along with other processed milk
business contribute only 2% to this large market.
b

Haleeb Foods' has expanded its product range by launching milk in Tetra Fino
P
Packaging.

Credit policy can be adopted to increase sales.


C

HFL can export to others countries.


H

CDL has been changed to HFL, so this change in name can help them to attract foreign
c
customers.

HFL can go for related diversifications by producing pure juices and flavored yogurt.

HFL can go for joint venture with other companies to attract the market share.
H

Entering in to the market of baby cereals, which will help them in increasing their
revenue.
• ~ Launching cheese would also beneficial for them to create the brand awareness.

Threats:

There is strong competition in food products market.


Different strategies adopted by competitors Nestle in juices
products
New product advancement by different competitors.
Government policy changes and fluctuation in tax rates on food
items.
Imported tin juices are great threat for good day.
Changes in Custom duties on plump.
Competition with Nestle, Engro Foods.

Effect of Seasonal ties upon sales.

Dependency on contractors for supply of milk.

Price fluctuations due to rupee devaluation as raw material are imported.

The uncertainty of economic conditions poses a great threat.

The present economic crisis in the world, led to the withdrawal of foreign
management from the company and the investment has come to a halt.

Price sensitive people.

Milk man (Gawalas) providing non branded milk in homes.


Summary of
Opportunities:

S
i
g
n
i
f
i
c
a
n
c
e

o
f

o
p
p
o
r
t
u
n
i
t
y

H
i
g
h

L
o
w
• Untapped
market
o Concentric

diversification

t y O f O c c u• Backward
rre nce
integration o To become
multinational

Untapped market and


Demand of juices are the
high opportunity for Haleeb
and probability of
occurrence is also very high
so Haleeb juices sales can
increases if it target the all
market and demand is
increase in market day by
day and Haleeb
also increase the demand and awareness of juices in market by best
advertisement.

Concentric diversification is not the high opportunity but probability and


occurrence is high because the Haleeb can increase sale by little change in the flavor
of juices.
Backward integration is the high opportunity foe Haleeb but probability of
occurrence is low because it very difficult foe Haleeb to make its juices plump itself
because Haleeb import the high quality of plump from different countries which it
can’t prepare due to lack of technology.

To become multinational is very difficult because Nestle is the biggest competitor


of Haleeb and Nestle is already a multinational company. In Pakistan Haleeb face
competition only due to nestle so it is very difficult for Haleeb to compete the Nestle
at international level.

Summary of threats:

Significance of threat
High Low

• Strong market
Competition
• • Low Switching
Cost

t y O f O c c u •rImported
r e n c e Tin
juices Custom duties on
o
import of plump

Haleeb face strong competition in market of juices, for Good day nestle juices are big
threat and for other all juices like funday and tropico shahzan, Maza and
country juices are big threat. Nestle is the big and strong competitor because Nestle is
an international company and people mostly know about international company due
to good quality.

There is not any huge difference in prices of different juices of the company so
customer can any time select juice of different company which is threat for Haleeb
Food Company.

The government of Pakistan changes the policies of tax on different commodities,

Imported tin juices are great threat for Haleeb juices especially for Good day because
Haleeb offer good day in market with high quality and tin juices also focus on quality
so there are competitor for each other.

Haleeb import plump of all juices from different countries Germany and France,
Haleeb paid high custom duties on plump, so increase in custom duty can increase
the cost of juices due to which prices of all juices increase which is not good for the
company.

40
Situation analysis – Internal capabilities

Non marketing capabilities

(Financial position, management and leadership, HRM, R&D,


operations-production capabilities and supply, interfuntional
coordination and responsiveness and competitive position)

REVIEW:

Many of the non marketing capabilities are strengths of the Haleeb


food company due to which they are very successful at national level in
many products especially in milk and its related products. R&D of Haleeb
is very aggressive due to which new flavors of juices comes one after an
other. Financial position is very strong all on all equity .The HRM is not
working up to the mark. The interfunctional coordination is very strong
and the management team is very cooperative.

IMPLICATIONS

Strengths Rating Weakness Rating


Financial Position 4 HRM 3
R&D 3
Competitive
2
Interfunctional 3 position
53

Management
Production
capability

Note Rating is based on a 5-point scale degree of significance and for


likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly
significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very
significant’ (1).

The probability of occurrence ranges from ‘high probability of


occurrence’ (5) to ‘not likely to occur in this time horizon’ (1). For
example a rating of 5–3 represents an extremely significant opportunity
or threat that has a reasonable likelihood of occurrence.

Marketing capabilities – Management

(Marketing organization, market intelligence, market planning and


market control process)

REVIEW

Marketing department of the Haleeb food Company specially in


juices is sufficient but not up to the requirement because for juices
advertisement and promotional campaigns are conduct in different areas
of Pakistan but in not all areas of Pakistan but marketing organization of
Haleeb food is working well and market intelligence and marketing
planning is very strong aspect of management of marketing.
IMPLICATIONS

Strengths Rating Weakness Rating


Market intelligence 4 Market control 3
Market organization 3 Pmotional 3
process
Organization 3 campaigns
Market planning 4
positioning

Note Rating is based


on a 5-point scale
degree of significance
and for likelihood of
occurrence: ‘extremely
significant’ (5), ‘quite
to highly significant’
(4), ‘significant’ (3),
‘reasonably significant’
(2) and ‘not very
significant’ (1).
The probability of
occurrence ranges
from ‘high
probability of
occurrence’ (5) to
‘not likely to occur
in this time
horizon’ (1). For
example a rating of 5–3 represents an extremely significant opportunity
or threat that has a reasonable likelihood of occurrence.

Internal factors evaluation (IFE)

Haleeb Foods
Company Weight Rating Weighted
Internal Factors Score
STRENGTHS

• Largest National food 0.05 4 0.2


• Strong brand loyalty 0.10 4 0.4
• Monopoly situation in pure 0.15 3 0.45
• Product positioning 0.05 2 0.1
• Strong distribution channel 0.10 4 0.4
• High quality products 0.10 3 0.3
• Strong management team 0.05 3 0.15
WEAKNESS
0.05 3 0.15
• Product awareness in
• Not good packaging 0.10 2 0.2
• Higher prices in pure juices 0.05 3 0.15
• Low promotion activities 0.10 4 0.4
• Less display centers 0.05 3 0.15
• Late recovery of claims 0.05 2 0.1

Total weighted Score 1.00 3.15

The industry average is 3.5 so the IFES of the Haleeb Food company
is not good in juices according to the average of the industry

External factors evaluation (EFE)


Haleeb Foods Company Weighted
Weight Rating
External Factors Score

OPPORTUNITIES
• Untapped market 0.20 4 0.8
• Diversification in products 0.10 3 0.3
• Backward integration 0.15 3 0.45
• International markets 0.05 2 0.1
THREATS 0.10 3 0.3
• Strong competitor Nestle in 0.15 4 0.6
• Products advancement 0.05 3 0.15
• Fluctuation in tax rates 0.05 2 0.1
• Imported juices 0.05 2 0.1
• Custom duties on plump 0.10 2 0.2
TOTAL 1.00 3.1

The industry average is 3.5 so the EFES of the Haleeb Food company is
not good in juices according to the average of the industry.
CPM (Competitive profile matrix)

Haleeb Nestle Shahzan

Critical Weight Rating Rating Score Rating Score


Sucess Score
Factor
Product 3 0.6 4 0.8 2 0.4
quality0.20
Prices 0.10 4 0.4 3 0.3 3 0.3
Advertisement 0.20 3 0.6 4 0.8 3 0.6
Positioning 0.15 2 0.3 4 0.6 3 0.45
Financial 0.10 4 0.4 4 0.4 2 0.2
Customer 0.15 3 0.45 3 0.45 4 0.6
poition 0.10 3 0.3 4 0.4 3 0.3
Market share
Total 1.00 3.05 3.75 2.85

In the CPM the industry average take as 3.50, so the Nestle performing is
the best as compared to their competitors in juices.

Haleeb lunched its juices two years ago but their performance is good
and it is in second number in field of juices due to their pure and nectar
juices with high quality and reasonable prices.

Shahzan only deal in nectar juices and target the lower income group of
people and it all sale is due to customer loyalty.
SOWT MATRIX OF HALEEB F

47
ST strategies. WT strategies.

E E Increase budget on packaging & promotional activities (W 1 ,


STRENTHS(S) product is not good, and
not so much attractive.
Haleeb offer high quality products especially pure Haleeb company has very
juices in market. high prices in pure juices.
Haleeb Foods is the largest National Food Company. Less promotional
Management team of Haleeb Company is very strong activities for its juice
and educated. products.
Haleeb foods have strong positioning in customer Less display centers use
mind. Haleeb foods have best for juices products in main
distribution channel in all over the Pakistan. shops of different cities.
Less product awareness in
customer mind.
SO strategies.
WEAKNESS(W)
WO strategies.
Packaging of juices

Extensive marketing
OPPERTUNITIES(O)
There are a lot of untapped Pakistan.
The concentric diversification
in different juices products.
Backward integration can use campaign.
in juice products markets in different areas of
It can become multinational and can target different market of different countries.
Usage rate of juices is
increasing E E Market

development (S1,O1)
E E Product

THREATS(T)
- Positioning as quality product among consumer.(S1,T1)
There isEstrongE competition
Acquiring the in food products
local competitors(S5,T3) market.
Different strategiesadopted by competitors
Nestle in juices products
• New product advancement by different
competitors.
Quantitative Strategic

Planning Matrix
(QSPM)

Haleeb Food Company Weight ProductMarket


Factor analysis development develop TAS
USTRENGTHU AS TAS ment AS
• Largest National 0.05 4 0.20 4 0.20
• Strong brand lyalty 0.10 4 0.40 3 0.30
Company 0.15 2 0.30 3 0.45
• Monopoly
juices situation in 0.05 4 0.20 2 0.10
• Strong distribution 0.10 4 0.40 3 0.30
• High quality products 0.10 4 0.40 4 0.40
• Strong management 0.05 3 0.15 4 0.20
team WEAKNESS 0.05 3 0.15 2 0.10
0.10 - - - -
mind
• Higher prices in pure 0.05 2 0.10 2 0.10
• Low promotion 0.10 4 0.40 4 0.40
• Less display centers 0.05 3 0.15 2 0.10
• Late recovery of 0.05 - - - -
claims
OPPORTUNITIES 0.20 2 0.40 4 0.80
• Untapped market
• Diversification in 0.10 - - - -
• Backward integration 0.15 3 0.45 4 0.60
• International markets 0.05 1 0.05 4 0.20
THREATS
0.10 3 0.30 3 0.30
• High market
• Strong competitor 0.15 4 0.60 4 0.60
Nestle in
• Products 0.05 3 0.15 4 0.20
• Fluctuation in tax 0.05 - - - -
• Imported juices 0.05 4 0.20 3 0.15
• Custom duties on 0.10 - - - -
plump
According to this result Haleeb Food Company goes for Market
development in different remote areas of Pakistan, because many markets
in Pakistan are untapped if Haleeb target all these market it can increase
its sales and can gain a lot of profits.
59
61
FINANCIAL HIGHLIGHTS (RS,000)
2007 2008
Trading Results
Sales-net 7,086,175 5,941,780
Gross Profit 1,090,860 870,368
Operating Profit 544,711 417,773
Profit Before Tax 486,114 380,673
Profit After Tax 345,697 232,888

Balance Sheet

Shareholders’ Funds 1,060,133 755,620


Reserves 275,000 275,000
Operating Fixed Assets 1,071,235 926,645
Net Working Capital 46,189 (59,748)
Current Assets 711,306 561,179
FINANCIAL ANALYSIS

200 200
Sales Growth % 19.26 26.
7 8
57
Gross Profit Margin % 15.39 14.6
5
Operating Profit Ratio % 7.69 7.0
3
Profit Before Tax % 6.86 6.41
Profit After Tax % 4.88 3.9
2
Pretax Profit Growth % 27.70 23.
00
Net Profit Growth % 48.44 21.3
5
*Current Ratio 1.07 0.9
0
Fixed Assets Tunover Times 6.61 6.41
32.6 30.
Return On Equity %
1 82
Return On Total Assets % 15.7 14.

* while calculating Net Working Capital and Current Ratio , Current


portion of liabilities against assets subject to finance lease is not
accounted for.
Segm ent Financial and Market

Attractiveness

Estimated

(Rsmilion) GOODDAY TROPICOFUNDAY


Sales 1 2 5 3

Variable costs 2 8 6
5

Contribution margin 3 10 7

Market share3 18 22 11

Total segment sales 2% 5% 1%


Segment position:

Business strength High Medium Low

Attractiveness Medium Medium Mediu


m
=
CASTING
162419946
on of Pakistan Target people having=age
age above 5 5-above
90 % of 162419946
=
ke other juices 146177951.4

= 75 % of 162419946 = 109633463.6
lling to drink
= 36544489
Price range
= 10 price
Average + 25 Avg
+ 65Quantity
= Rs.33
=2
= 33 * 2 * 36544489 = Rs.2411936274

PROJECTED INCOME STATEMENT

Sales
CostofgoodssoldRs Gross profit
= Administration
2411936274 = 2098360250 = 313576024
Expenses
Distribution=
cost(34691250)
Operating profit
Other income = (81477000) = 197407774
Profit before = 2591400
interest
and taxes = 199999174

Tax______ Net = 49145950 =

From all the above data we find out that there is a lot
of demand for Haleeb juices but they are spending
low as per requirement . As far as promotional
activities are concerned they have introduced many
product as concentric and conglomerate
diversification but when we talk about Haleeb to a
common person he knows that they are offereing just
milk at market place , he does not know that they
have introduced other products like juices , ghee, rita ,
powder milk etc.

So in order to remain competitive at market place


they have to focus extensive marketing campaigns so
that they can capture potential customer. In order to
attain and retain the existing customer they have to
offer discounts , occasional offers etc.
Page
69
A. ACTIVITIES
TO BE
I
IMPLEMENTED

Sales
representatives
target all the
untapped
markets and
niches, by using
current
p
products.
Revenue
objectivity
should be
given high
attention ,
and it
should
increase
by 45%
every year
(for the
next 3
y
years.)

Product line
should be
extended by
adding new
flavors
uices. of j
Page
Related and
unrelated
diversificati
on in the
form of
eatables ,
made up of
fruit
extracts and
ffood pulp.
Role of R&D
should be
increased to
help
a) target markets
most effectively

b) to get
knowledge
about
consumer’s
table and
p
preferences.

M
or
e
b
u
d
g
et
a
n
d
re
so
ur
ce
s
s
h
o
Page
ul
d
b
e
al
lo
ca
te
d
to
a
d
ve
rt
is
e
m
e
nt
a
n
d
sa
le
s

pr
o
m
ot
io
n.

B. HOW
IMPLEMENTATI
ON TO BE DONE

Develop
desirable
skills in the
employees
who are
assigned the
basics of
target
Page
implemented
these skills
may include.

The ability of
sales force,
personnel in
finance
department
,expert in
R&D etc ,
should first
understand ,
the nature of
the tasks or
task’s
importance
fot the
company.
To increase
the ability to
put right
people on
right jobs .i.e
the person of
finance dept.
should not be
given the
tasks of
R&D , which
is highly
sensitive and
innovational
field.

Page

C.RESPONSIBILITIES FOR IMPLEMENTATION

• Create the effectiveness of the personnel to focus on


critical aspects of their job.
Other remedies to enhance implementation includes

1. Organizational Design Organizational design should consist


of multifunctional teams,
including at least 1 member of each department to solve the problem
or to achieve the targets.

2. Incentives Various rewards may help achieve successful


implementation.
For Example in case of Haleeb juices, bonuses or commission should
be given to members of sales force/personal selling teams who sales
more units of juice packets.

3. Communication Rapid and accurate movement of


information should be
confirmed .To do so efficient and effective feed back systems should
be introduced. For example in case of Haleeb the smooth flow of
information should be confirmed from a single member of sales
force / distributors up to the brand manager and vice versa.

D.TIME AND LOCATION OF IMPLEMENTATION Proper


time period should be given for the start and end of the task and
each personnel related to that specific job should be given complete
information about the geographic area of his/her sales and the
volume to be sold in case o personal selling and sale promotion.(the
balanced score board technique may be adopted)

Page
Page
72
They get comprehensive information from all the departments
carefully and its analysis is conducted with great care . The results are
analyzed with great emphasis on the company’s behalf. If there
appears any deficit then revise their strategies implement them and
then get the results and if there are no loopholes found they continue
to implement that strategy for the specified period of time. This
evaluation conduct twice a year.

Page
Strategic
Marketing
Evaluatio
and
Control

Conduct
strategic
marketing audit

Sele
ct
perf
orm
anc
e
cri
ter
ia,
me
as
ur
es,

Page
an
d
me
tri
cs

Obtai
n and

analyz
e
inform
ation

A
s s e ss p e r f o r m
an d t a k e
necessary
action

Page
Page
75
Page 7 6
CURRENT COMPETITIVE POSITION

Haleeb competitive position is quite superior to other competitors.


haleeb is having the major threat of local brands because they are
prospering day by day in the market is the major competitor in the
market for Bata because they took advantage from Haleeb’s strategies
rather than using their own strategies. The relative market share of
Haleeb is 18.3%, MAZA is4.17%, Shezan 12.5% and the local
competitors are having relatively larger share than the other
competitors which is 50%.

WHAT SHOULD COMPETITIVE POSITION BE IN 3 YEARS


TIME?

In the next three years Haleeb competitive position should be stronger,


company seems to have more quality features and better products.
There will be more improvement in current products but company is
also willing to enter in some new projects. They should go for more
innovations and fashionable products must be introduced in
ladies.They must increase their relative market share with aggressive
sales and promotion. More advertising campaigns should be made to
augment it in the coming three years.

WHAT ARE THE STRATEGIC IMPLICATIONS – IN TERMS


OF OUR EXISTING AND POTENTIAL NEW PRODUCTS AND
MARKETS? THAT IS, HOW WILL WE GROW THE
BUSINESS?

; Haleeb should introduce more innovative products in the market to


increase its demand. Those innovations must be according to the
customer’s demands and their preferences.

; Whenever Bata open its new distribution centre Servis take


advantage from its strategies and open a store in front of their
store, Haleeb should take steps to overcome this threat.

Page
; Bata should gain the sustainable competitive advantage.

; Most of Bata’s wholesales were in the northern areas, when earth


quake came it suddenly fall down. Bata should wind up wholesale
from northern areas and should shift it towards the cities of
Rawalpindi, Lahore and Hyderabad because more footwear units
are located in these cities.

ESTIMATED REVENUE FROM EXISTING PRODUCTS IN


EXISTING MARKETS (MARKET PENETRATION)

Market size (Value):


Current size: $ 16 million

Market projections Year 1 Year 2 Year 3


$ 18000000 $21000000 $23000
000

Current market
share:

Projected market share Year 1 Year 2 Year 3


(Via new strategies)
65% 69% 73%
Estimated value of
existing Year
Year 1 Year 2 3
Products in existing
150100.7$ 153102.7$ 156164.75$

Page
ESTIMATED POTENTIAL REVENUE FROM EXISTING
PRODUCTS IN NEW MARKETS (MARKET DEVELOPMENT)*

Year 1 Year 2 Year 3

2311550$ 2357782$ 23194937$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS


IN EXISTING MARKETS (NEW PRODUCT DEVELOPMENT)*

Year 1 Year 2 Year 3

480322$ 489929$ 499727$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS


IN NEW MARKET SEGMENTS (RELATED DIVERSIFICATION)
*

Year 1 Year 2 Year 3

60040$ 61241$ 62466$

Page 79
Conclusion

Haleeb Foods is well establish company which is competing with


multinational companies and has 70% market share in dairy industries
which makes it market leader. The Haleeb Foods are trying their best to
properly perform their operations. They are following international
standards like ISO standerds and are using different tools to continuously
improve their operations. They are introduced new technology in their
production process first time in Pakistan. They are providing quality
products. There human recourse policies are also good. The locations which
they have selected for their operations are beneficial for the collection of
milk and distribution. There layout helps to facilitate their employees, flow
of information and operations. But there are some short falls which they
must overcome.

The HFL Company has a very rich history and spread over the world, the
study in this report specially the particular SPACE matrix tells us that HLF
Company should pursue an aggressive strategy. HLF Company has a strong
competitive position in the market with rapid growth. It needs to use its
internal strengths to develop a market penetration and market
development strategy. This includes focus on Water and Juices products,
and catering to health consciousness of people through introduction of
different coke flavor and maintaining basic coke flavor. Further company
should integrate with other companies, acquisition of potential competitor

Page
80
businesses, innovation in branding and aggressive marketing strategy can
bring long term profitability.

As a whole HFL is a good organization to work in but there are certain departments that need

improvements. It is surviving in the FMCG’s sector with some strengths and weaknesses. I am of the

view that if the management of HFL wants to show the same results in the future that it should have to

take some decisions before time, because in the 21st century only those organizations can survive who

are utilizing all their resources efficiently and effectively.

Recommendations: Page
81
Haleeb Foods Limited should also allocate a healthy budget for the advertising of

its products.

•HR Department of HFL should introduce HRIS to increase the efficiency of the

company.

•The co-operation among the different departments of HFL should also improve it

will lessen the bureaucratic cost and increase the efficiency of the company.

The activities like customer satisfaction day should be performed on regular basis so

the company should know about the feedback of the customers regarding the

products and image of the company.

The shopkeeper complains that HFL don’t provide replacement to

the expired products so they should provide proper replacements to

the shopkeepers to enhance the image of the company.

Haleeb Foods Limited should improve its distribution

system specially the retailers are not happy with distribution

of Haleeb Milk.

They should use latest technology for quality maintenance because even now they
are using manual based inspection.

They should try to maintain high quality which they are already producing.

They should use Automated Storage and Retrieval System to minimize the storage
cost.

They should implement on Computer Integrated Manufacturing to be the ware


housing and shipping department computed aided.

They should use vision system in inspection.

Accommodation should be provided to the employees.

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82
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83