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Haleeb Foods Limited
Pakistan is the world’s fifth largest dairy industry in the world and cheaper than many developed
countries in the world like Australia and America. So there is a tremendous amount of
opportunity for firms to excel in this industry. Chaudhry Dairies limited is one of those who
have entered the dairy industry of Pakistan and have posed serious threats to well established
firms like Nestle. Chaudhary limited was incorporated in 1984 as a Public limited Company. It
was established with the financial aid of PICIC (Pakistan Industrial Credit and Investment
Corporation) and ADBP (Agricultural Development Bank of Pakistan). The head office is
situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km Lahore-Multan
Road, Bhai Pheru. In keeping with the company's commitment towards product diversification
and to provide a wide range of quality food products to their valued customers, the name of
Chaudhry Dairies limited was changed to Haleeb Foods Limited with effect from February,
2004. Commercial production started in 1986 & the company reached its breakeven in the year
1992. Initially 150 people were employed at the plant. 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 MILK PAK 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 was providing consumer quality packaged food particularly dairy Foods
products. Haleeb Foods Limited (Formerly CDL Foods Limited) is one of the Pakistan based
company with a burning passion to take on the international market. In the clutter of
multinational the company has a distinguished and a prestigious place. The name of Haleeb
foods limited is synonymous with best quality foods products.
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Mission Statement of Haleeb Foods
“To build branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing share holder’s value”.
Vision Statement of Haleeb Foods
Most innovative and fast growing food company offering products enjoyed in “every home
every day”.
Values of the Company
Enterprise
Empowerment
Accountability
Trust
Teamwork
MILESTONES ACHIEVED BY HALEEB FOODS LIMITED (CDL)
HACCP (in process controls for safer products)
ISO 9002 (better quality for greater customer satisfaction)
ISO 14000 (environment-friendly operations)
TOTAL QUALITY MANAGEMENT (TQM)
Haleeb Foods limited has established TQM system in 1994. Today's business world is all about
TQM and HFL has done it 12 years before. The company follows the philosophy of “delighting
the customers ". The company treats them as partners and keep channel of communication open
with them. The company has succeeded in this by continuously improving the quality of its
products and by satisfying the needs of its customers. The company believes in creating and
sustaining an environment, which encourages learning and empowerment and these in turn help
strengthen the quality culture across the business. Haleeb Foods Limited has got the honor to
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launch sterilized milk for the first time in Pakistan. Also the credit for launching the milk in tetra
fine packaging, for the first time in Pakistan, goes to Haleeb Foods Limited.
CURRENT SITUATION
Haleeb Foods Functional Organization Structure
Haleeb is a public limited company managed by a board of directors who has vested (to have the
rights of ownership) the control of company operations to Managing Director (MD). Haleeb is
an organization run by a team of professionals headed by a team of professionals. It has 17
departments successfully running their operations. The Functional Organization Structure has
the following details:
Chairman / Board of Directors
Managing Director
Human Resources (HRD)
Accounts & Finance (A&F)
Marketing (MKT)
Sales (SAL)
Supply Chain (SC)
Operations (OPR)
Quality Assurance (QAD)
Research & Development (R&D)
Finance Department
Information System
Technical Department
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ORGANIZATION CULTURE
Organizational culture is an idea in the field of Organizational studies and management which
describes the psychology, attitudes, experiences, beliefs and values (personal and cultural
values) of an organization. Organizational culture of Haleeb Foods Limited includes structures,
policies and corporate culture.
Structure: Company has a centralized structure (Situation in which decision-making power is
at the top of an organization and there is little delegation of authority) all the decisions are made
by the board of directors, heads of marketing, finance and production departments.
Policies: Company adheres (to stick) to strict policies, which are all directed towards Dairy
product improvements and providing best nutritive value to its customers.
Culture: The way people talk, dress up and work determines the corporate culture of the
company. Haleeb Foods Limited has a competitive culture, where strong values such as team
work, empowerment and sharing of ideas are encouraged.
SITUATIONAL ANALYSIS
HALEEB FOODS LIMITED is one of those few leading national companies. It collects about
eight hundred thousand liters of fresh milk everyday from its large number of collection points
located all over Punjab, chills it at the site and processes to manufacture different products .
PRODUCT RANGE
Haleeb Foods Limited is producing the quality products as per the standards of ISO & HACCP.
Along with the quality products, Haleeb is also producing the wide range of the products
including milk based products, juices, powder etc. The products can be divided into following
ways
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CONSUMER PRODUCTS
Products, which are branded and are sold to the end consumer through a distribution chain in the
packaged from as produced by the company. Consumer products are sold under following brand
names
1) Dairy Products
i. Daizy Butter
ii. Nutrious Thick Milk
iii. Daizy Yogurt
iv. Liquid Tea Whitener
v. Powder Tea Whitener
vi. Daizy Cheese
vii. Asli Desi Ghee
2) UHT MILK
i. Haleeb Nutrious Thick Milk
ii. Dairy Queen
iii. Candy Up Flavored Milk
iv. Skimz Liquid Milk
v. Skimz Powder Milk
3) Tropico:
i. Tropico Nectar
ii. Good Day 100% Pure
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INDUSTRIAL PRODUCTS
Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it is also
sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced in 1996. Both
products are sold in 25 kg bags. Excess milk fat is sold unprocessed to makers of butter, ice
cream and sweeteners, or at request is turned into ghee.
EXPORTS
CDL started exporting its products in 1999 and has done business with customers in Korea,
Afghanistan and china, United Kingdom. The company is not only supplying products nation
wide but also currently exporting its products to Afghanistan, Bangladesh, Europe and America.
It exports Desi Ghee to South Africa cream, milk and fruit juices Uk. Powdered milk and ghee
to Qatar. It is also planning to export its products to Canada, Dubai and Uzbekistan.
The Executives of Haleeb Foods claims that growth rate of Haleeb Foods PVT Limited is
highest as compared to any other company in Pakistan. Its total sales grew immensely in last few
years. It has given jobs to 2200 employees which includes skilled unskilled and temporaries. Its
plants in Lahore 3-shift basis daily in which every shift lasts for eight hours that means the plant
works 24 hours a day. As the company is making products on large scale, it produces a lot of
waste as well which is being disposed in an efficient way in order to keep the environment
health and clean as respect for the national Protection Laws. The company is earning high
profits and as a result it is sponsoring the welfare of the children as it runs about 600 schools in
different parts of the company. It is one of the major tax payers as it claims to be very honest in
tax assessments and paying of tax amounts set by the Government. The major secret of the
success of the company is the practice of the Honesty in every field and on all frontiers that are
expanding day by day. The company investor and management teams have unanimously decided
since the start that there will be no compromise on quality of products. That is why it subjects
milk to strict tests on the basis of which there is a lot of reduction in supply due to rejection
which is approximately more than 100,000 liters per day, a very big loss daily. The company
bears this loss daily instead of selling in the market because they don’t want to compromise on
quality. The company administration has taken keen interests in refining the environment of its
establishments and developed all of its sites at the highest aesthetic standards. It has a very
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attractive office at 135-Ferozpur Road Lahore and a beautiful food processing plant with
amazing landscape 62 kilometers on Multan road. The plant is not only a production but also has
a big warehouse, a mosque, a fair price shop and a guest house. It has commissioned a similar
type of plant with a huge capacity in Rahim –Yaar- Khan.
Marketing Mix of Haleeb Foods
The marketing mix covers all the aspects which play an important role in the physical
appearance, affordability and the way a product is placed in front of the consumer. It helps in
building an image which would in the end help the company to capture huge market share.
Product
Product line is decided through consumer demand to get positive results. Haleeb Foods have
adopted a customer driven approach and regularly conducts environment analysis to check
consumer lifestyles, competitor’s products and advancements in technology. The Research and
Development Department conducts opportunity analysis; checks gap in market segment and
generates an idea.
Price
Haleeb Foods are priced keeping in view the buying power of middle-income and high-income
social classes. The cost includes the cost of manufacturing, labor, raw materials etc. Being a
multinational brand, the pricing objective of Haleeb Foods is mainly to increase sales as it has
already penetrated the market. Their prices are not affected by price changes by competitors, and
they don’t engage in price wars. Competition is met through innovation. The prices of Haleeb
Foods change as the product size is changed of the Product Life Cycle. And Because of the
contract between the seller companies, they offer same price. They use pricing strategy on cost
base method, to make there prices of different products. The retail prices are different according
to there size and brand. However prices have been standardized throughout Pakistan and there is
no differentiation based on geographical areas. There is no change in prices according to season.
It remains the same. Wholesale price is cheaper than the retail price because in wholesale the
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selling is in bulk. There is no discount and early cash payment policy in Haleeb foods. They
adopt same strategy in international marketing as in local marketing. But the prices are
according to the international currency.
Promotion
Good Promotion always plays an important role in the success of any product. A good product
can fail if it is not properly promoted. Haleeb Foods is taking big steps to promote it’s product
by maintaining good relationship with the community of Pakistan. Like other companies Haleeb
is using different modes of media for advertising just like Newspapers, Telivision, Radio,
Magazines, Newsletters, Internet, Brouchers etc.
Place
Place include three major areas that are Industrial, Shopping, Residential area. It is difficult for
people to go to factory to get Haleeb’s products. Its products are available in shopping areas and
residential areas. They distribute there products nationally and internationally through out the
world. Haleeb Foods are distributed using an indirect channel, that is, dealers. They follow
pushing strategy. In which firms in a distribution channel cooperate in marketing a product. It
includes suppliers and retailers. Retailers take order from retail stores on daily basis and provide
products according to order. There are two departments
Raw material department
Finished goods department
From the finished goods department the product goes to the warehouses.
Haleeb Foods Company has four types of dealers
Normal Dealers: Deals in Haleeb milk along with the other brands of company.
Exclusive Dealers: Deal in Haleeb milk only
Mega Dealers: Same as normal dealers but are offered extra trade discount due to
high sales potential.
Corporate Dealers: Handle institutional sales
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COMPETITIVE ANALYSIS OF HALEEB FOODS
SWOT ANALYSIS OF DAIRY INDUSTRY IN PAKISTAN
STRENGTHS
Endowed with the very good breed of buffaloes
Highest per capita consumption of milk in association
Regular culling of less productive animals
A high ratio of agricultural land to cultural ratio
An emergence of commercial dairy farms on a large scale
WEAKNESSES
Small and scattered animal holding
Prevalence of traditional raw milk marketing system
Poor quality of milk
Milk processing predominantly dependent on obsolete UHT technology
Lack of access to well trained support service staff.
OPPORTUNITIES
Huge unsatisfied demand of milk and milk products
Increase consumer awareness of healthy eating
THREATS
Inadequate public and private investment in modernization of sector
Vested interests in perpetuating the dependence of imports in dairy products
Unregulated imports of dairy products at cheap prices
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PEST ANALYSIS OF HALEEB FOODS
It is very important that an organization considers its environment before beginning the
proceedings. In fact, environmental analysis should be continuous and feed all aspects of
planning.
POLITICAL CONDITIONS
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 for this
market because food and dairy products are consumer goods and they have to purchase it
in any condition.
ECONOMICAL CONDITIONS
The fluctuations in Pakistan economy also effect Haleeb’s market position. Because of
high inflation and low purchasing power Haleeb is unable to capture many potential
customers of the large Pakistani population who have to struggle hard to make their
living possible rather than to afford the luxury of drinking packed milk as often as they
would like to.
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. Haleeb Foods Limited employs the latest machinery in
production in its plants and computerized systems for quality checks and control as well
as production. In milk industry the most latest technology is in operation in Pakistan
hence no competitor poses a threat to Haleeb on basis of technology. Their Ultra High
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Temperature is a technology which maintains the quality of their milk and at the same
time provides thickness.
SWOT ANALYSIS OF HALEEB FOODS
STRENGTHS
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
WEAKNESSES
Low promotional activities
Comparatively weak distribution system
OPPORTUNITIES
Haleeb Foods Limited can export food items especially Juices to Middle East
CDL Foods limited has been changed to Haleeb Foods Limited, so this change in name
can help them to attract foreign customers.
Haleeb Foods Limited can go for related diversification by producing pure juices and
flavored yoghurt.
Haleeb Foods Limited can go for joint venture with other companies to attract the market
share.
THREATS
Strong competitors i.e. Nestle, Engro Foods
Price sensitive people
Milk men (Gawalas) providing non branded milk in homes
COMPETTIVE ANALYSIS OF HALEEB FOODS
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Haleeb Foods competitors in the dairy industry are mainly Nestle and Engro Foods. Nestle a
Switzerland based company has been serving Pakistani consumer since 1988 when it first
acquired the shares in Milk Pak. Nestle with is offering the following products in dairy line
Milkpak, Nesvita, Nido, Nestlac, Everyday, Nestle Dahi, Nestle Fruit Yogurt, Nestle Raita and
Milk Pak Cream. From the product line it is clear that why Nestle is the market leader grabbing
44% of the market share. The major contributors of Nestle success are HR, Marketing and Sales
Department. The major contributor is its appropriate strategy particularly its relationship with
the social and environmental sectors. Perhaps this is the reason that in spite of being a
multinational has been well accepted in Pakistan. There are ample chances for its survival in the
future. Engro foods established in 2004 are nicely on its way to grab a handsome portion of
market share. Engro is all about people who are a part of them their culture is dynamic and
energetic with emphasis on core values and loyalty of employees. It has got 10% of the market
share in dairy industry of Pakistan. Top Quality brands like Olpers, Olwell, Tarang, Omore and
Owsum have been successfully launched under the helm of company’s dairy products. Haleeb
Foods have grabbed 38% of the market share with annual turnover of 10 billion annually and it
has posed serious threats to the Nestle Dairy product line. The remaining share of the market has
been with the small competitors and Gawallas providing non branded milk in the dairy industry
of Pakistan.
Why Nestle Dairy Products are Market Leaders?
Keeping new players like Olpers and old ones like Haleeb Nestle emphasized
more on advertising
Nestle have been experiencing a constant increase in cost with raw materials
contributing the larger part of its incease. Haleeb having their own suppliers so
the raw material cost is bit too low.
Nestle maintained its value of gross profit nearly or above 30% to ensure that it
has strong control over its costs and efficiency of production. But on the other
hand Haleeb faced a bit of downfall when OLPERS introduced their campaigns.
BCG Matrix
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Haleeb milk is categorized as a star in the Haleeb Foods Limited product line as it brings the
most in terms of revenues to Haleeb Foods Limited. It has been most productive for Haleeb
Foods Limited since their operations.Haleeb Milk has grabed more than 54% of the market
share. But they must invest more in it to make it more profitable as tough competitors like
OLPERS and Milk Pak are still in competition and trying to grab a handsome portion. Skimmz
Powder Milk and Daizy Yogurt are having proved to be dogs in product line of Haleeb Foods.
Nestle Dahi and Nestle Fruit Yogurt is nicely dominating Daizy Yogurt and Skimmz Powder
Milk hasn’t met the destination where Haleeb Foods Limited would have hoped in Pakistan.
ADVERTISEMENT ISSUES OF HALEEB FOODS LIMITED
With the arrival of ENGRO FOODS in dairy industry of Pakistan, it has caused serious concerns
to Haleeb Foods with respect to competition in markets of Pakistan. Haleeb Milk which is
ranked as a STAR in the product line of Haleeb Foods has been seriously challenged by the
aggressive advertisement campaigns of OlPERS. Haleeb Milk sales have been seriously
threatened in one of the huge cities of Pakistan like Karachi by Olpers. In fact, sales of Haleeb
Milk are more in Lahore than Karachi, which shows the nature of threats that have been posed
by Olpers to seasoned players like Haleeb Milk in dairy industry. As discussed earlier, when
Olpers was launched they aggressively advertised themselves. Generally, women select the
brand of milk that suits their children or for the regular use in homes of Pakistan. It is the nature
of women that they are attracted towards something more quickly than men. That is where
OLPERS outsmarted the seasoned competitors by advertising aggressively between 3.00 PM to
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5.00 PM and from 8.00 PM to 9.00 PM, as this is the time when most women switch to
television and that is the time when Olpers imposed itself in the mind of Pakistani women who
generally make decisions which brand of milk to use or not. This is where Haleeb Foods is
perhaps lagging behind other dairy industry competitors. It has been proved through research
that Olpers have advertised itself 60% more than Haleeb milk. Good Promotion always plays an
important role in the success of any product. A good product can fail if it is not properly
promoted. There are serious concerns about the advertisement of Haleeb Milk for me. They have
really limited the use of their product through their own advertisement by saying “CHAYE
BANAYE KHOOB HALEEB”. There are serious concerns for me they are themselves saying
that their milk is only tea purpose through this campaign, so what about drinking HALEEB
MILK. Is it harmful to drink HALEEB Milk? If we closely look at the ads of Olpers or even
Milk Pak they show various uses of their milk in one add. In, Olpers latest advertisement we see
that they have shown an old man and a child drinking the milk. It shows that their milk is suited
for old people as well as young generation of Pakistan. They obviously show that it is good for
making tea but also show its usefulness in making sweet dishes through their advertisement. For
me ENGRO FOODS has beautifully read the lifestyle of large population of Pakistan. They have
shown five or six uses of their milk in one advertisement. Would you like to buy a product that
has one use or six uses? So, where is Haleeb FOODS thinking tank? They have themselves
limited the use of their product. That is one of the flaws in HALEEB FOODS advertising.
Another thing as far as their advertisement is that for at least past five or six years they were
having “SADIA IMAM” in their advertisement except their last last advertisement. Whereas,
ENGRO FOODS has come up with most attractive and gorgeous models of Pakistan in their
advertisements. In the recent advertisement of HALEEB FOODS they have come up with old
ZEBA BAKHTIAR and SHAAN. People are more attracted towards fresh gorgeous faces rather
than old beautiful faces. So, selection of somebody who is representing your brand is also very
important. We also see in the advertisement of our neighbor country that Katrina Kaif is the
brand ambassador of most famous brands of India (16 to be precise). It is not that she is most
beautiful but because she is most liked, famous and most demanded at present times. So, you
need somebody who is most popular, liked and most demanded at present time to make your
advertisement most attractive. That is also a field where OLPERS has outsmarted Haleeb Milk
to grab a good potion of market share in the recent years. Frequent and timely advertisement is
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something that is concern to entire HALEEB FOODS LTD not only to their milk. There is no
proper portfolio management of Haleeb Foods as they have a number of products in which they
are operating. There are still a large number of products that have not advertised yet and hardly
anyone is aware that they are launched or available in the market. People don’t know about the
most of the products of HALEEB FOODS LIMITED like DAIZY CHEEZ, DAIZY YOGURT,
SKIMMZ POWDER MILK and SKIMMZ liquid milk. So how can you succeed if people don’t
know that your products are available in the market? There is no awareness campaigns by
HALEEB FOODS as they are pioneers of UHT Milk concept, ISO certified company, 10
billions of annual turnover and serving since 26 years. There is no cross merchandise
promotion(Retail selling technique in which purchase of one item allows
an automatic discount on a different but related product) as far as HALEEB FOODS is
concerned. Firms like nestle has nicely adopted this strategy. HALLEB FOODS LIMITED
hasn’t also done a lot to improve relationship marketing approach. So, proper marketing of the
product line of HALEEB FOODS LIMITED is the need of the hour to stay up with the
competition. HALEEB FOODS really need to change itself because those who don’t change
with the passage of time have fates like SHAMANO CYCLES. You can’t succeed in the
prevailing ruthless competition without staying ahead of competition.
OTHER CHALLENGES FACED BY HALEEB FOODS LIMITED
Centralized decision making
No proper strategy formulation and lack of strategy implementation plan
No sales on credit
Baised view of consumer due to haleebs thickness
More focusing on exports as there is large opportunity in local market
Conutless departments and all have separate departments.