Haleeb Foods Ltd Report and Assignment

Introduction of the Company:

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.

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)

Vision, Mission, Values and Policies of Haleeb Foods Limited.

Vision Statement:

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

Mission Statement:

Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value.

Policies:

·         Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, 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.

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

 

Values:

·         Enterprise

·         Empowerment

·         Accountability

·         Trust

·         Teamwork 

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.

·         Collection of raw milk

·         Testing milk at the plant reception

·         Pasteurization

·         Standardization

·         Homogenization

·         Sterilization

·         Ultra Heat Treatment (UHT)

·         Packing

 

 

 

 

 

 

 

 

 

MARKETING MIX

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 co mpany to capture

huge market share.

PRODUCT:

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There are a lot of products which  are being manufactured by the Haleeb Foods but we  are

only considering two products;

A.

HALEEB MILK

The  first  product  is  a  diary  item.  The  product  was  first  designed  to capture  two  types  of

markets which are for drinking  and tea purpose. After few years the company  realized that

Haleeb Milk is getting famous for tea market so it·s better to launch a new brand for drinking

purpose.

B.    CANDIA MILK

After  realizing that they need  a  new brand to capture  market of milk  for drinking purpose.

Here they know that the Nestle Milk Pack is the market leader for that segment. They come

up  with  a new  concept of  milk  from  Europe·s  No.  1  brand.  People  have  the  image  o f  a

multi  national  company  products  are  always  good  and  hygienic.  These  products  are

available in the  following sizes;

1 Litre Pack

½ Litre Pack

¼ Litre Pack

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MACRO ECONOMIC ENVIRONMENT

A .

ECONOMY

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.

B.

TECHNOLOGY

Haleeb  Foods  employees  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  Temperature  is  a  technology  which

maintains the quality  of  their milk and at the same time provides thickness.

C.

DEMOGRAPHICS

Haleeb  Foods  target  market  includes  people  from  all  demographics  (age  wise,  gender

wise, income groups, social status  etc.)  For  example,  Haleeb  Milk  is for  tea purpose  so  we

can say it is designed for mature age  and it is  being purchase  by  the  same  age  level.  The

company  is always  targeting  females  as  it  is  very  clear  from  the  advertisements.  It is  also

important  to  identify  that only  those  people  who  are  curious  about  their  health  and  have

the  purchasing  power  will  buy Haleeb Milk.  But  on  the  other side  Candia  Milk  is  targeting

children  as they are  making  active part in the choice of milk.

D.    SOCIAL VALUES

Haleeb foods are well aware of their social responsibilities that mean they are getting the

advantage of being a local company and at the same time helping the environment. They

are also helping hospitals as well.

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COMPETITIVE ENVIRONMENT

A .  CUSTOMERS

Haleeb  Milk  has  there  major  and  large  customers  in  the  market,  they  can  be  further

categorized in  two  parts.  First  one  includes  hotels  and  offices  as  Haleeb  Milk  is  the  main

ingredient for  tea users. Second one include the general public as which is the main segment

for Haleeb Milk.

However,  these   three   customers  being  large   and   powerful   are   not   in  an   influential

and  bargaining  position  they  cannot  demand  discount  or  others  facilities  but  they  can

enforce the company to change their strategy.

B.  SUBST ITUTES

Haleeb  milk  does  not  have  a  substitute  as  such  but  other  packed  milk  company·s  are

considered to  be  their  substitute  because  they  are  also  providing  milk  and  it  can  be  used

in  tea  making although those company·s are not focusing on that segment.

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RIVA LS/COMPET ITORS

A .

DIRECT COMPETITORS

The   direct  competitor   of   Haleeb   milk   is   Nestle   Milk  Pack   and   both   of   them   are

targeting different  markets  but  they  are  considered  to  be  in  direct  competition.  Nestle

Milk  Pack  is targeting people to use Milk Pack  as for drinking purpose but Haleeb milk main

focus  is  for  tea  users  as  they  are  continued   to  target  them  but  Haleeb  Milk  some  times

focuses  on the  other markets such as for drinking purpose also.

Now  it·s  very  important  to  know  that  CDL  consider  Nestle  as  their  main  competitor

because they  are  providing  all  the  products  that  are  being  provided  by  the  competitors.

The  products include juices, yogurts, milk, and we can judge that they are competing on all

the dairy items.

B.

INDIRECT COMPETITORS

That section  includes  all   those  brands  which  are  newly  entered  in  the   market.  They

are considered  as  indirect  competitors  because  of  the  following  reasons.  First  of  all  their

market share  is very low  as compared  to Milk Pack and Haleeb  Milk.  Secondly  they  are only

competing on the basis of milk which is targeting only one segment of the market.

C.

PRODUCT QUALITY

The  milk  quality is maintained  from  the  start of  the collection  of milk because it·s  a stage

where contamination can be started and reducing  the quality of the milk. The field lab test

includes the thickness test and the  amount of proteins. After that the  milk is maintained at

4  degree  Celsius and  so that no bacteria can enter in the milk.  The  milk collecting  tankers

are cleaned with steam and warm water.

In  Haleeb  Milk  factory  the  milk  under  goes  21  types  of  test  to  maintain  the  quality

standards as it·s the only dairy company of Pakistan who posses quality standards such as ISO

9001: 2000 and ISO 14001.

In  the  end  the  milk  is  packed  in  a  special  tetra  pack  packaging  which  maintains  the

quality  of milk till then its expiry date

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PACKA GING & LABELING

The  pack of  Haleeb Milk includes  Blue color which  represents the thickness of the milk and

at  the  same  time  they  mention  purity  and  thickness.  Their  packaging  is  very  consistent

with their overall idea or concept that they want to communicate to the consumer.

A .

PRICE

The  price  of  Haleeb  Milk  remains  consistent  over  a  period  of  time.  If  the  inflation  rate

remains in the single digit then the price of the product remains same over 2 to 3 years  but

if  the  inflation  rate  goes  in  double  digits  then  the  change  in  the  price  comes  within  a

year.  If  the  rate  of inflation is more than 20% then the change can take place with in 3 to 5

months.

The company always remains same with the price of Nestle Milk Pack as the change in price

can  cause  to  things  first  the  price  can  reduce  the  sales  of  Haleeb  Milk  and  secondly  they

can  give  a  perception  that  the  quality  of  the  product  is  reduced  in  case  of  reducing  the

price.

The  company  considered  retailers  as  their  partners  so they  share  a  justifiable  percentage

with them  as they are  the  only persons  that can force  the consumer to buy  Haleeb  Milk  as

compared  to  other  brands  but  the  strategy  is  not  effective  in  case  of  big  shopping  malls

Haleeb Milk Prices

B.

PLACE

Haleeb  milk  is  targeting  the  mass  market  that  means  they  have  to  work  hard  to  make  it

available at each outlet and to make sure that the product is  available with  out ease.  They

have  divided regions according to  consumption patterns.  The consumption is calculated on

the  basis  of  buying  behaviors of  all  packed  milk.  The  regions  like  Defense,  Model  Town,

Faisal  Town,  and Cantt.  They  are  trying  to  deliver  their  products  in  their  own  vans which

are considered  to be a better means of influencing the target market.

The  regions  where  buying  percentage  is  low,  they  provide  the  product  with  the  help  of  a

proper  distribution  network.  But  in  both  cases  they  make  sure  that  the  product  is

available and  it is provided on the standardized price.

The  distribution  network  includes  the  distributor  then  the  wholesaler  and  in  the  end

the retailer. Again benefits are provided on the achievement of the sales targets and timely

delivery  of  products.  In  some  cases  products  are  provided  to  big  retailers  by  the

distributor  itself but mostly it is being purchased by the retailer from the wholesaler.

C.    INCENTIVES T O RETAILERS

The  company  gives  discounts  only  to  their  premium  and  loyal  customers.  The  most

commonly used incentive is giving more milk  but at  the  end  of the  year  a proper appraisal

function takes place to appraise distributors and retailers.

D.    TARGET MARK ET

The  company  is  targeting  females  and  people  of  mature  age  for  Haleeb  milk  as  they  are

mainly interested  in  the  purchase of  Haleeb milk  but  in  case  of  Candia they  are  targeting

children  as they are providing freedom to them to make choices o f their own.

E.    PROMOTION

First  of  all  we  should  make  our  minds  clear  about  what  the  company  wants  to  do.  Their

image and the perception that they want to give to their target market. The product Haleeb

Milk is for tea drinkers and Candia for drinking purpose.

Both the  products  are  targeting  mass  market  that  means  they  should  adopt a  medium  that

can reach every individual. T.V  commercials  are  the  only  medium  which  can  contact  every

one  if their T.V is turned on.

T.V  commercial  is  the  main  medium  that  is  most  actively  being  utilized  by  Milk  Pack  and

Haleeb  Milk.  The  second  medium  that  helps  both  of  them  is  through  Tetra  Pak

advertising  that  is highlighting the effects on doodh that is provided by the normal means.

After  advertising  the  second most  effective  method  is  sales  promotion.  For  this  Tetra  Pak

also give  sales  promotion  which  can  be  utilized  by  both  Milk  Pack  and  Haleeb  Milk.  The

company individually targets  females  as  they  are main focus  of  the  company  so every  time

the  theme focuses on some thing valuable for females.

Posters  and  billboards  are  also  affectively  used  for  the  promotion  purposes  but  they  are

not  focusing  on  it  as  heavily  as  they  are  focusing  on  advertising.  Billboards  are  purchased

for  some time period but after the  promotion  is  known  to everyone the  billboard were not

used anymore.

Posters are  pasted  at the small shops to enforce  the  impulse buying  and Haleeb  gives  a lot

of  weight-age  to  the  shelf  space  that  they  get.  But  this  strategy  is  used  in  big  shopping

malls only because nestle enforce the  retailers through other products so  that Haleeb can·t

enforce small retailer
CHAPTER # 2

SWOT Analysis

Strengths:

·         Haleeb Foods is the largest National Food Company.

·         Strong brand loyalty of customers of Haleeb company.

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

·         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

·         Less product awareness in customer mind.

·         Haleeb Company conducts less promotional activities.

·         Less display centers use for products in main shops of different cities.

·         Haleeb Foods Company has late recovery of claims.

·         Relatively a small and local company in comparison to its rivals.

·         Dependence on 3rd party for supply of milk.

·         No credit sales.

·         Low sales margins due to highly value added products.

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

·         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.

·         Inadequate marketing.

·         Low promotional activities.

·         Comparatively weak distribution system.

Opportunities

·         There are a lot of untapped markets in different areas of Pakistan.

·         Backward integration can use in juice products of Haleeb Company.

·         Haleeb Foods Company can become multinational and can target different market of different countries.

·         Pakistan is the seventh largest producer of milk in the world with annual output of over 22 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 overall milk 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.

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

·         Credit policy can be adopted to increase sales.

·         HFL can export to others countries.

·         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.

·         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.

·         New product advancement by different competitors.

·         Government policy changes and fluctuation in tax rates on food items.

·         Changes in Custom duties on plump.

·         Competition with Nestle, Engro Foods.

·         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.

Internal factors evaluation (IFE)

Haleeb Foods Company	Weight	Rating	Weighted
Internal Factors			Score
STRENGTHS
•     Largest National food company	0.05	4	0.2
•     Strong brand loyalty	0.10	4	0.4
•     Monopoly situation in pure juices	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 •     Product awareness in customer mind	0.05	3	0.15
•     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 milk according to the average of the industry

External factors evaluation (EFE)

Haleeb Foods Company External Factors	Weight	Rating	Weighted 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 •     High market competition	0.10	3	0.3
•     Strong competitor Nestle in juices	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 milk according to the average of the industry.

CPM (Competitive profile matrix)

                                        Nestle   Olpers          Haleeb

Critical Success	Weight	Rating	Score	Rating	Score	Rating	Score
Factor
Product quality	0.20	3	0.6	4	0.8	2	0.4
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 position	0.10	4	0.4	4	0.4	2	0.2
Customer loyalty	0.15	3	0.45	3	0.45	4	0.6
Market share	0.10	3	0.3	4	0.4	3	0.3
Total	1.00		3.05		3.75		2.85

·           

In the CPM the industry average take as 3.75, so the Olpers performing is the best as compared to their competitors in Milk category.

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

SALES FORECASTING Total population of Pakistan	= 162419946
Target people having age	5-above
People having age above 5	= 90 % of 162419946
	= 146177951.4
People who like other milk	= 75 % of 162419946
	= 109633463.6
People who willing to drink Haleeb	= 36544489
Price range	= 10 + 25 + 65
Average price	= Rs.45
Avg Quantity	= 2
Sales	= 33 * 2 * 36544489

                 = Rs.2411936274

Scope of this Research:

What were the reasons of failure of Haleeb Foods and how we re-launch the product in the existing or new market?

Research Methodology:

The main concern in this section is to describe various stages through which the research procedure passed. All the researches whether in physical or social phenomena depend upon a special way of investigation and interpretation of data. In physical sciences generalization are drawn after experimentations but in social sciences experimentations are not infrequent use because of complex and changing nature of the social phenomena some of the traditional instruments together data are interview, case study and survey method. The present research involves an exclusive Survey at Urban and ruler areas of Karachi.

Population and Sample Size

The population for the subject study comprises of all genders and people living in different areas of Karachi. We have used random sampling technique and the sample size is 300.

Data Collection Method

Based on the study a questionnaire was developed. The respondents’ opinions were obtained to see that what are the needs or the expectation of people when they think of a tetra pack milk. Secondary data in this report has been collected from journals, articles. Primary data collection is mainly done through Questionnaires and interviews.

Instrument

The instrument used for collecting the data was questionnaire and unstructured interview reason for choosing questionnaire is to get accurate and unbiased data.

Limitation

The assumption regarding the willingness of the Peoples (Target Segment) is altogether different as per our perception. Theyshowed much resistance and inability to participate in the interviews.

Sample

In this research, the first stage that comes after selecting the topic is usually the selection of the sample.

The sample of the present is the Karachi Urban and ruler area. In this area we find all types of Consumer and Retailer who used or sells packed milk of fresh milk, another reason of selecting this universe is because of its new potential market for packed milk currently only 4% share of packed milk in total milk market.

Selection of Samples

When Universe is large it is difficult to interview every unit of the universe. In such situation it is better to draw e sample. Sample is any sub group of or sub aggregate drawn by some appropriate method from a population.

A qualitative research exercise like questionnaire survey requires very careful selection of the group participants, as the people who fill the questionnaire represent a very large population segment in term of their options, perceptions, attitudes, believes, ideas, likes
dislikes, etc. It is, therefore, essential that the group participants are recruited from amongst the population segment that they represent. To archive objective, we have tried to select most suitable segment of population that is prepared in the light of the selection criteria for the study .Each respondent fulfilling the selection criteria was invited formally to fulfill the questionnaire on the specified time  For this study we categories two types

·         Urban

·         Ruler

Sample  of 300  respondents (owner  of  Tea  stall,  hotels,  and teashops) at Multan Road both sides, Rewind Road has drawn by simple Random Sampling, and 50 key outlets of Lahore city for availability survey of packed milk.

Types of Respondent

·         Females (Customer or Consumer of milk)

·         Male (Owners of tea-stall, hotels, Outlets Manager or consumers  of milk)

Respondent Profile

According to our research objective design our respondent belong to SEC A, B & C

Tools of Data Collection

In the present study questionnaire is selected as a tool of data collection because of the compilation rate is 100% and also respondent are of different educational level. It is inappropriate to distribute questionnaire among the respondents because there is a
greater possibility of missing the respondent. So the researcher is asking questions written on questionnaire personally from the respondents.

CHAPTER # 3

Procedure

Product Concept

We use packaged milk for a better quality tea however it is expensive and restrict our frequent consumption. Now I find Haleeb ABC pouch milk that has same premium quality but offer great savings in my monthly budget. Now I can purchase packaged milk more often and with assurance of Haleeb quality products offering.

Market Size

Packaged milk consumption is 1.1 M Ltrs in Pakistan and that is only 4% of all milk produced in Pakistan. The packaged milk industry is growing at approximately 20% per annum. Various suggested legislations to restrict loose milk can enhance market growth tremendously.

Audience Segmentation

For Haleeb milk all audience is same because it is consumer product, consumer have a feeling and thing but it is low involvement product because its cost is to much high and a normal consumer of packed milk understand the its advantages o disadvantages and for Haleeb milk s target market that above mention almost same all over the country it will be communicate through it advertising strategy and media like Outdoor, TVC, Print media, direct marketing etc. These are some facts and figure that taken from Haleeb Foods Marketing team .it is recent data comparison and information of milk industry etc.

Market review

Situation Analysis

This section presents relevant background data on the market, product competition, distribution and macro environment.

 Market/Industry situation

Industry Structure

The industry structure packed milk in the category is oligopolistic where there are a few firms (Haleeb, Nestle, Engro, Good milk) producing essentially the same commodity.

 Entry-Exit barrier

The major entry barriers include high capital requirements; economies of scale; patents and licensing requirements; scarce locations; raw materials and distributors.

Industry life cycle growth

The market share for Haleeb is expected to increase by 15% in the expected year. Therefore, Haleeb milk can be classified in the growth stage.

Target Market

The biggest market for Haleeb milk is urban areas of all cities  Haleeb  milk  is  a  mass-market  product  that  is  targeted towards Haleeb milk is generally use for tea by household male or females  of all ages.

Brand Loyalty

Create Brand Loyalty and Awareness. This will be done through   promotional   activities   such   as   College   Activation, Restaurant Activation, Posters, and other forms of Branding.

Availability

Haleeb milk is available in four sizes i.e. 250 ml, 500 ml,1 litre and 1.5 litre. It is easily recognizable due to its blue color and Haleeb Logo.

Price

The prices of the four different size packs are as follows:

                                                 

·         250 ml-Rs.25

·         500 ml -Rs.45

·         1 Litre- Rs.80

Place

The   biggest   market   for   Haleeb   milk   is   Lahore,   Karachi, Rawalpindi, Islamabad, Gujranwala, Faisalabad, NWFP, Sialkot, Multan, and Rahimyarkhan and all small cities of Pakistan They have a wide distribution network as compared to Nestle and Olpers.

Advantage Attributes Of Haleeb Milk

Attribute of Haleeb Milk has an advantage

·         Good taste

·         Available

·         Better advertised

The USP currently being used by Haleeb is The Thickest milk.

Competitive Situation

In this section we focus on the competitor analysis.

Identifying Competitors:

The first step in competitor analysis is to identify competitors, which can be further classified in the following types

Brand Competition

The brand competition for Haleeb milk includes all those milk which are in direct competition with Haleeb

·         Nestle

·         Olperís

·         Good Milk

Generic Competition

Every firm is competing for the same rupee. This will include the ntire milk category such as tea, coffee, etc.

Market Competition

In addition to looking at companies making the same product, we looked at companies that satisfied the same customer need.

Advertising Objectives for the Haleeb

The Advertising Objectives of Haleeb Milk is to highlight their key attributes such as consumer awareness regarding the brand, attitude and preferences of the end consumer. They will try to retain their existing consumer besides generating new potential consumers for maximizing the profitability and visibility of product.

Haleeb Milk advertising objectives are  

·         Specific

·         Realistic

·         Measurable.

Create  Brand  Loyalty  and  Awareness.  This  will  be  done  through promotional activities such as College Activation, Restaurant Activation, Posters, and other forms of Branding.

Advertising Strategy for Haleeb Milk

Advertising Strategy of Haleeb milk is to select the right media channel and media vehicle to reach the target market and try to enhance brand awareness and focus on the positing of brand in consumer mind also increase market share through cost effective method the elements of the Creative  mix,  Target  Audience,  Product  Positioning,  Communication Media, and Advertising Message. In short our strategy tells us how to get there, and achieve the media objective of this campaign.

Key Points

·         Defend milk market- leader position in Pakistan.

·         Threat from competitor ís brands and new launching brands. Selection of Target market in Pakistan.

·         Product positioning and market-leadership.

·         60% success criteria of this campaign

·         Vision and mission of product analysis

·         Assessment of ever changing Economic, Cultural, International and public scenarios on the performance of Haleeb products

Availability Survey of Packed Milk

Availability Survey of Packed Milk on Outlets of Karachi

Olpers                   35%

Good Milk            20%

Milk Pack             45%

Graphical Representation:

Gender

The population for the subject study comprises of all genders Male and female in our survey there were 27% female and 73% male respondendents.

Age

The responses were collected mostly from the people of the age under 18-25 which was 60% also 20% were of the age between 26-35

Question # 01: What comes to your mind with the word MILK?

By looking through the above tables we can easily conclude that according to the data collected through survey it is observed that 48% people thinks of Olpers if given the choice, 32% goes for Milk pack. Only 12% people responded that they think of Haleeb and only 8% think of Goodmilk.

Question # 02: If you prefer liquid milk, do you prefer packaged liquid milk or un-packaged liquid milk?

By looking through the above tables we conclude that mostly people preferred packed milk. According to the data collected 67% people prefer packaged milk and 33% people prefer unpackaged milk.

Question # 03: Do you prefer low fat or normal milk?

Through survey result we conclude that 63% people prefer low fat milk and 37% like to have normal milk. This shows that now a day’s mostly people are health conscious and they like to have milk that has very low fat.

Question # 04: You prefer packaged milk for

Through survey result we conclude that 73% people prefer packaged milk for drinking tea and 27% use it for drinking milk. This shows that mostly packaged milk is used to drink tea.

Question # 05:  Which brand do you prefer?

According to the data collected through survey it is observed that 52% people first preference is Olpers, 32% goes for Milk pack. On the other side only 14% people like to have Haleeb and only 2% goes of Goodmilk. This clearly shows that the main market leader right now is Olpers.

Question # 06: Which packaging feature attracts you most?

Survey shows that 74% people are attracted with the Brand name and only 26% thinks of design while purchasing so it is the brand that is more important to people than the design or any other things.

Question # 07: In your opinion which color should be used for packaged milk? And why?

Question # 08: Which brands packaging attracts you the most? Why?

Survey results shows that mostly people like the packaging of Haleeb almost 45% reason was that the blue color shows purity and its attractive to eyes. Then the second most popular band that attracts people is Olpers almost 25% reason mostly people are fond of their packaging color which is simple and informative. Then the third brand is Milk pack and Good milk  14% reason is that it shows originality. The last brand is Nurpur which is not liked by many people only lower class people like to have Nurpur.

Question # 09: In your opinion which brand makes the best tea?

Survey result shows that 49% people believes that Haleeb makes the best tea, then 27% believe that Olpers is best choice for tea, 21% thinks that Milk pack is the best to make tea and only 3% people were in favor of Good milk.

Question # 10: Please Select the Brand in each Attributes according to your perception.

CHAPTER # 4

Findings 

·         We have conducted survey from fifty different types of respondent who are owner /worker of tea stall, Hotel. Tea shop or consumer about packed milk.

·         Most of Respondent having issues of price ,quality ,and
handling

·         All these hotels or tea stall daily consumption of about 20 liters per day

·         All this particular market is very potential for enhancing brand positing and market share as well

·         Haleeb have to focus on this particular market and develop it launch some new brand in cost effective packing and capture the potential market.

ADVERTISEMENT ISSUES OF HALEEB MILK

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 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 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.

CHAPTER # 5

 Conclusions and recommendations 

Survey Questionnaire 

ADVERTISING STRA TEGY

The  strategy  is  very  simple, they know that we have a perception that the milk  is  of  good

quality when it is thick. If  we are  talking about tea  users then it  becomes obvious that the

milk  should be  thicker  because  only  then  it  can  make  more  cups  of  tea.  So  their  slogan

always focuses  on thickness and purity

The  decision  to  choo se  the  right  advertising  media  is  very  important  and  it  becomes

more important to identify that at what time the people watch TV and specially their target

market I-e females.

Sadia Imam  is  used  as their brand ambassador. They have  also used other celebrities which

are Sajid Hasan and other famous celebrities.

Through  research we would come  to  know  that females  watch  TV  after  10  am to  11.30 am

and again they watch TV at night at 7pm to 11 pm. The most wanted channels are Star Plus

and Geo News  and  Private  Movie  channels  that are  running  on  cable.  The  company should

advertise on these timings and try to advertise on cable as well.

.  PERSONAL SELLING

Direct  marketing  is  also  used  but  in  a  little  bit  different  manner.  They  are  using  direct

marketing  at  retailers  and  training  them  as  well.  Whenever  they  come  with  a  new

promotion  teams  are  created which helps in  communicating with end  user  and try to solve

their ambiguity.

SALES  PROMOTION

The  second  most  utilized  tool  of  IMC  is  sales  promotion.  They  are  using  it  effectively  and

give things that  are  valuable  for  females.  Tetra  Pak  is  also  helping  them  by  launching

different  schemes  after  a regular  interval  of  times.  The  company  has  used  gold  jewelry

and  arranges functions for females.

.     PUBLICITY

The  company  is  not  able  to  gain  publicity  from  the  consumers.  The  biggest  strength  of

the company is causing problems. Consumers perceive that they are using  powdered milk in

order to make their milk thicker. Which refrain them to give them to their children?

The  company  sho uld  take  more  part  in  the  events  that  are  necessary  building  process  of

a  strong  country  and  try  to  play  a  role  in  the  building  process.  This  would  change  their

image  and they  can  gain publicity  and consumer  would also buy  more  of their  products  to help the cause

 

 

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