Haleeb Foods

Marketing Strategy 1

Executive Summary

Pakistan is an agricultural country. According to Ministry of Food, Agriculture and livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry contributes 49% to the agriculture value and 11% to the GDP. Annual production of milk is 35.25 Billion liters in the country; But the Processed milk is only 4% of the total production.

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.

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.


Macro Environment

A PEST analysis is an analysis of the external macro-environment that affects HALEEB. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.

Such external factors usually are beyond the firm's control and sometimes present themselves as threats.

For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis.

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. We know that in economical analysis portion we discuss the regulation of exchange of materials, money, energy and information so Haleeb has got a huge impact of exchanging i.e. in trading within and outside the countries but first of all they are more focusing within Pakistan to create more value among the initial users of the product then outside Pakistan too, though they are focusing exports to these countries…

Exports to: Middle East, North Africa, Central Asia, Europe, USA and South Asia.


Social: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 also helped hospitals as well. Haleeb also do the societal marketing. When the 8th October earthquake hit Pakistan northern and Kashmir area haleeb contributed one rupee on every purchase of its product. It also provided free milk packets with the help of Pakistan army to the victims of that disaster.

Political:These are the forces that allocate power and provide constraining and protecting laws and regulations, so like everyone Haleeb focuses and follows every plan in the lights of laws so that they won’t be facing any kind of hurdle between their legal processes. Since they have created a huge name in all area’s that we have discussed and Political part is one of the most important. Government raised the duty on import of paper. Increased sales tax on flavored milk, No interference by the Government as far as standards of milk processing are concerned.

Technological : Latest machines Tubular indirect heat treatment system from foreign countries, we know that it’s the impact of forces that generate problem-solving inventions. So Haleeb has got the latest technology to compete in the corporate world. Because if they lack in technology they won’t be able to overcome other competitors, since its name is getting recognized day by day, so they don’t want to take any kind of risk in any area. 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.

Demographics:

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

The chart representing the demographics for Haleeb in Pakistan

AGE 6-11, 12-19, 20-40, and 40+GENDER MALE, FEMALEFAMILY SIZE 2-4, and 4+INCOME UNDER 7000, 8000-15000, 15000-30000 and a 30000+OCCUPATION managers and officials, sales, farmers, retired,

supervisors, students, homemakers,EDUCATION grade school or less, high school graduate,RELIGION Muslim, Christian, MinoritiesRACE AsianGENERATION baby boomer, generation X , generation YNATIONALITY Pakistani

Some Behavioral Points Are:

Occasions regular occasion, special occasionUser status non-user, potential user, first time user,

regular ausers Attitude toward product enthusiastic, positive, indifferent or negative


Psychographic points are:

CLASS working class, middle class, upper middle class, and lower uppers

Life Style achievers, strivers, survivorsPersonality compulsive, gregarious,

authoritarian, ambitious

Competition:

Haleeb must look at companies that satisfy the same customer.

There are two levels of competitors in external environment:

National Level

Regional Level

National Level:

Nestle is the major competitor of Haleeb on national level. Both the companies have a cutthroat competition with each other. There is competition due to coverage and their image in the mind of the people.

Regional Level:

There are many brands, which are competing Haleeb on regional level. These include shakarganj, Engro Foods, Nurpur.

Guwallas’s Milk:


One interesting thing to know is that CDL’s management still considers Guwalla as its biggest competitor and as out of total milk market only .21% is of branded milk; CDL’smanagement is focusing on those segments of the market, which are still using guwallas milk.

2. Internal Competitors:

The internal competitors of Haleeb Dairy Queen

Market Analysis

Market Definition:

The set of all actual and potential customers of particular product and service.

Market size:

Packaged milk consumption id 1.1 M Liters 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 legislation to restrict loose milk can enhance market growth tremendously.

Market segments: Market segments can be done by behavior of the consumer or according to product.

Target Market:


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 too much high at a normal consumer of packaged milk understand its advantages or disadvantages and for Haleeb milk’s target market that above mentioned almost same all over the country . it will be communicate through its advertising strategy and media like outdoor, TVC, print media, direct marketing etc.These are some facts and figures that taken from Haleeb foods marketing team. It is recent data comparison and information of milk industry etc. the target market for Haleeb every consumer of the milk in the Urban centre and mass marketed in small towns and rural areas.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 of their own.

Positioning:

Haleeb foods have been positioning its products by its attribute and by usage or with respect to its application. Positioning is the place where haleeb has not been able to convey its message in an effective way.But Haleeb is not delivering message according to modern perspectives. As “SAB SE GARHA DOODH” is not complete and final thing that the customer have in mind. Today consumers need fitness more than that.`

Repositioning:

Haleeb has again build the relation with customer by new slogan “Ik garha rishta umar bhar k liye”.


Porter five forces Analysis


Industry analysis model:


Porter fives forces model is an excellent model to use to analyze a particular environment of an industry. So for example, if we were entering the branded Milk industry, we would use porter’s model to help us find out about:

1. Rivalry among existing firms

2. Bargaining power of suppliers

3. Bargaining power of buyers

4. Substitute Products

5. Threat of new entrants

The above five main factors are key factors that influence industry performance, hence it is common sense and practical to find out about these factors before you enter the industry


Forces Driving Industry Competition:

Rivalry among the existing firm

In case of Haleeb there is intense rivalry among the competing sellers due to the following factors in the field of branded milk industry there are a large number of existing competitors the strongest of all the porter analysis model its one of the most difficult process to get a true product image in the mind of the customers and how to position against competing brands, number of existing competitors the strongest of all the porter analysis model its one of the most

difficult process to get a true product image in the mind of the customers and how to position against competing brands.


Factors creating intense rivalry are as follows:

Diverse competitors:

Attempts by cross-border competitors to gain stronger footholds in each other’s domestic market boost the intensity of rivalry, especially when foreign rivals have lower costs or very attractive products. In case of Haleeb, so far Nestle is the only diversified rival, No doubt that competition between Nestle and CDL is quite intense. Both are engaged in consistent homework, just to break and attract each other customers toward themselves in the following scenario. Nestle has an image of multinational corporation in the minds of customers so but because of proper home work by CDL it has been successful in creating a segment for itself.

Customer’s switching cost:

The lower the cost of switching, the easier it is for rival sellers to raid one another’s customer. In case of Haleeb, customers’ switching cost is low due to availability of Milk Pak, olpers and other branded and non-branded milk. In other words consumers are more interested in getting packed milk. If the brand that they like to consume is not available at the spot, they would definitely ask for other rival brands all the existing companies are offering nearly the same products along with having same core level.

High exit barriers:

Huge investments of financial, human and marketing resources are required to enter in this business because of need for plants which can produce quality with consistency and need for procurement at high level. After obtaining such plants it takes years to recover the fixed costs and to breakeven so rivalry tends to be more vigorous when it costs more to get out of a business than to stay in and compete.


Since Haleeb is in the market for years, so it is not quite feasible for CDL to close its business and jump into any other business. Thus, rivalry is strong; as the firm has to stay and compete with existing rivals it will not only hamper the following brand but also creates an ill impact for the existing brands operating under the same umbrella of brands.

1. Threat of New Entrants :

New Entrants to market bring new production capacity. Milk yogurt and juices is the commodity that is required throughout the year. Moreover the industry is attractive, as it is growing quite rapidly, so there are threats of potential new entrants. But on the other side these threats are not intense due to high entry barriers and existing condition of the economy because only a minor error at any stage will make the product in the category of DOG at BCG matrix.

Capital Requirements (High Investment):

The larger the total rupees investment and other resources needed to enter the market successfully, the more limited the pool of potential entrants. Production of packed milk requires huge investment of financial, human, technical and marketing resources. At the moment, Haleeb has no threat of new entrants but in the future any foreign firm can be a threat in the current market scenario the following organization haven’t faced any major competitor having such a head on competition.

Economies of scale:

Scale economies deter entry because they force potential competitors either to enter on a large-scale basis (a costly and perhaps risky move) or to accept a cost disadvantage (and lower profitability). Without achieving the economy of scale it is difficult to compete in the market. More over new entrants in the pasteurized milk business may encounter scale-related barriers not just in the production, but in advertising, marketing, distribution, financing, and raw milk purchasing as well. Haleeb industry achieved its breakeven in 1993.


Cost disadvantages independent of size:

Existing firms may have cost advantages not available to potentials entrants. In the industry of packed milk, these advantages include access to good supply sources and the benefits of learning and experience curves etc. Since Haleeb is in the market, for the last more than 15years so it will also give an edge to the Haleeb in terms of availability of huge experience in terms of technical experts and technical experience.

Access to distribution channels:

Product like milk and yogurt is the commodity that requires intensive care. Handling of milk on its way till end-user requires great care. Distribution of Packed milk is a challenging job and distributors are reluctant to take distribution of those brands, which lack buyer recognition. A network of retail dealers may have to setup from scratch. So CDL enjoys its strong hold on the distribution network of Haleeb, as access to an effective distribution channel is a barrier for new entrants because a carefully knitted channel strategy will not only an edge but also preserves the freshness of perishable items.

Product Differentiation (Logic for Brand Preference):

Once the brand image is formed, than it is difficult for any other firm to introduce new brand into the market so unless and until it has low price and superior quality. As in packed milk only few quality brands are available (Haleeb, Milk Pak, Olpers and Good milk) so people will prefer these brands on the other newly introduced brands in all the scenarios following existing brands have a strong brand recall in the minds of customers like Haleeb have “the thickest milk”.

Government policies:

It is a Barrier to entry from different licensed and registered companies which are already dealing in drinking purpose products and especially on national level in terms of environmental friendly packing along with the recyclable form of material used.


2. Substitute Products:

If we consider Haleeb’s positioning as powdered milk is in the major threat. Even though currently powdered milk has been positioned for people from higher socio economic groups

But in the future some low priced brand for powdered milk can be a definite threat but when the scenario of ultra high temperature comes than people will only prefer to packed and branded milk.

3. Bargaining Power of Suppliers :

Number of suppliers:

Raw milk is standard commodity and is available in the open market from a large number of milkmen. If anyone refuses to sell its product, then company can buy it from others who are already willing to sell to the company so the bargaining power of suppliers is not a major issue in the following case if any organization nominates any farmer for providing raw material then it will give some incentive too to its regular buyers like CDL have a number of suppliers providing raw milk.

Importance of volume to supplier:

Suppliers also have less leverage to bargain over price because the company is purchasing the large volume of their milk and the suppliers don’t have much option either to avoid such kind of discrepancies. The organization limits a price floor if the persons are interested then they should also on role.


3. Bargaining Power of Buyers:

Number of buyers:

As there is large number of distributors, who are buying and distributing the product, so their bargaining power is low and company has leverage to implement its terms and conditions on distributors.

From domestic customers point of view the prices and quality along with specifications is defined in the meeting held under the tetra pack association with is lead by the major giants of the following industry, sometimes as public message mutually beneficial advertisement campaigns are run by all the existing competitors which are on role of all Pakistan Tetra Pack Association.

Competition and Market share:

Competitors:

Haleeb foods competitors are Nestle ShakarGanj Food mills Engro Foods Shezan Gourmet

The direct competitor of Haleeb milk is Nestle Milk Pak and both of them are targeting different markets but they are considered to be in direct competition. Nestle Milk Pak is targeting people to use Milk Pak as for drinking purpose but Haleeb milk main focus is for tea users as they are continued to target them but Haleeb Milk sometimes focuses on the other markets such as for drinking purpose also.


Indirect competitor:

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 Pak and Haleeb Milk. Secondly they are only competing on the basis of milk which is targeting only one segment of the market.

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, because they take advantage from Haleeb’s strategies rather than using their own strategies. The relative market share of Haleeb in juices is 18.3%, Maza is 4.17%, Shezan 12.5% and the local competitors are having relatively larger share than the other competitors which is 50%.

The total share in the market of packed milk is 21%. Out of these 21% the shares of HALEEB, MILKPAK and OTHERS are as follows:

Haleeb : 42%

Milkpak : 44%

Others : 14%


COMPETITOR’S STRENGTHS AND WEAKNESSES

STRENGTHS

1) Nestle is the biggest competitor of Haleeb. Nestle is an international company recognized all over the world.2) It has more financial resources then Haleeb. Its quality is also internationally recognized.3) It has large product mix.

WEAKNESSES

1) Large number of product outside the Pakistan.2) Discrimination approach towards their own products.3) Focus on specify products.

Market Trends:A market trend is a tendency of a financial market to move in a particular direction over time.

some people are health conscious and some diet conscious. The people who are health conscious may prefer Haleeb, but who prefer diet may not prefer Haleeb products. The reason is clear by Haleeb slogan that “sab se garha doodh”.

Consumer Analysis

Nature of the Buying Decision:

High involvement Low Involvement

Brand significant difference

Complex buying behavior

Variety seeking b.b

Few difference Dissonance reducing b.b

Habitual b.b


Participants:

User Influencer Decider Controller

Demographics:

AGE 6-11, 12-19, 20-40, and 40+GENDER MALE, FEMALEFAMILY SIZE 2-4, and 4+INCOME UNDER 7000, 8000-15000, 15000-30000, 30000+OCCUPATION managers and officials, sales, farmers, retired,

supervisors, students, homemakers,EDUCATION grade school or less, high school graduate,RELIGION hindu, Muslim, Christian RACE Asian, black, whiteGENERATION baby boomer, generation X , generation YNATIONALITY Asian, African, American

Psychographics:

SOCIAL CLASS working class, middle class, upper middle class, and lower uppers

Life Style achievers, strivers, survivorsPersonality compulsive, gregarious, authoritarian,

ambitious


Buyer Motivation and Expectation:

Buyer motivation and expectation comes through firms advertising. Buyer motivation takes into account by the price of the product, product image and the medium used for presenting the product.Haleeb catches its consumers through formal AIDA plan.

1. Attention2. Interest3. Desire4. Action

Loyalty Segments Haleeb customers are loyal with haleeb products. It is not

necessary for haleeb to make segments. At nearly every age haleeb products used. Even in every city and village where they have distribution channel their products used.

Internal Atmosphere

Company Resources:

Financial

Personal Saving RatePersonal saving rate of HALEEB is 5%

Disposable & Discretionary IncomeDisposable & Discretionary Income of HALEEB is 95%.

Business Saving RateBusiness Saving Rate of HALEEB is 10%.


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

Budget Deficit OR SurplusThere is no deficit but 8% surplus of HALEEB.

Rate of risk

For HALEEB FOODS Rate of risk is 5%.

People:

Legal Representative/Business Owner:

Mr. Suleman Daud

Board of Directors:

Mr.IlyasChaudhry

Mr.IsrarAhmed

MianZahidSaeed

Mian Muhammad Amjad

Sheikh Muhammad Rasheed

Major General (Retd.) Shafiq Ahmad

Mrs.Nasreen Ilyas

Mrs. Zarina Saeed

Mr. Muhammad Ishtiaq Khan

ChairmanMarketing Strategy 22

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, EasternAsia, Southeast Asia, Middle East, Africa, Oceania

Work Force

It has a team of 3000 exceptional individuals to support its operations, out of which1 . 900 are permanent employees2 . 600 are on contract and3 . 1500 are of 3rd party


Time:

Haleeb food limited always responsible for their products availability in the market. Haleeb foods have control over their quality of dairy products because they have to check the quality in dairy form.

Skills:

High quality workforce in Haleeb food limited working their level’s best to deliver superior value to their customers in order to build the profitable relationship with the customer.

OBJECTIVES

Mission Statement and Vision Statement

MISSION STATEMENT:

“It is our mission to be the number one food company inPakistan by providing our customers with the highestproduct quality in terms of taste, experience, andsatisfaction”.

VISION STATEMENT


“It is our vision to be the best and leading provider of foodproducts in Pakistan and among the top ten food companiesin the world, by continually challenging present conventionsand always staying a step ahead of the competition”.

Corporate Objectives

Objectives set out what the business is trying to achieve.

Haleeb’s Objectives can be set at two levels

These are objectives that concern the Haleeb’s business as a whole

Corporate objectives include:

• Haleeb aim for a return on investment of at least 15%• Haleeb aim to achieve an operating profit of over £10 million on sales of at a least £100 million• Haleeb aim to increase earnings per share by at least 10% every year for the a foreseeable future

Financial Objectives:

• Haleeb aim to build customer database of at least 250,000 households a within the next 12 months• Haleeb aim to achieve a market share of 10%• Haleeb aim to achieve 75% customer awareness of our brand in our target markets

Marketing Objectives:Marketing Strategy 25

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 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.

Long Term Objectives:

Long-term objectives are results that an organization seeks over a multiyear period. Common categories for Haleeb’s long-term objectives include profitability, employee development, productivity, technology development, employee relations, competitive position and public and social responsibility. A long-term objective should be acceptable to key stakeholders, it should be flexible and appropriate for the planning horizon, it should be measurable and achievable, and if it is achievable it should be challenging enough to be motivating, and it should be suitable to the current position of the organization and suitable in the context of the organization's mission. Finally, a well-stated and meaningful long-term objective should be understandable to all organization stakeholders.


http://www.google.com.pk/imgres?imgurl=http://www.bscdesigner.com/wp-content/uploads/2010/05/financial-perspective.png&imgrefurl=http://www.bscdesigner.com/balanced-scorecard-the-four-perspectives-financial-perspective.htm&usg=__W1x9oN-cByVyC7QjblJVDn13oGI=&h=379&w=540&sz=77&hl=en&start=47&zoom=1&tbnid=RKxJDWms5-iC5M:&tbnh=154&tbnw=220&prev=/images?q=financial+objective+of+a+business&um=1&hl=en&sa=N&biw=1362&bih=497&tbs=isch:1&um=1&itbs=1&iact=hc&vpx=306&vpy=214&dur=7260&hovh=188&hovw=268&tx=175&ty=113&ei=zVrxTIabK4XuuAP0qqmKDg&oei=mVrxTPOoC5SuvgOYmfWdCg&esq=4&page=4&ndsp=12&ved=1t:429,r:1,s:47



Short Term Objectives:

Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.

Short-term objectives of Haleeb Foods are generally related to the financial year, in a time frame from now to the end of the year (i.e. up to a year away). An example might be to raise turnover by 8% and profit by 9% by the end of the financial year.

Corporate culture Haleeb pvt limited has more greater communication between management and workers. They have better team spirit. Haleeb experience less bureaucracy and easier decision making. Fewer levels of management which includes benefits such as lower cost as manager are generally paid more than workers.

SUMMARY OF SITUATION ANALYSIS

SWOT Analysis

STREGNTHS


• No 1 dairy company.

• Growing Sales and profits.

• Major shareholder in the food industry of Pakistan.

• Efficient Distribution networks throughout the country.

• Quality Products.

• Environment Friendly.

• Socially Responsible Company.

• 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.

WEAKNESSES

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.

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

• Inadequate marketing.

• Low promotional activities.

• Comparatively weak distribution system.

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 company to capture huge market share.

Product:

There are a lot of products which are being manufactured by the Haleeb Foods but we are only considering two products;

1) 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.


2) 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 of a multinational company products are always good and hygienic.


These products are available in the following sizes; 1 Liter Pack ½ Liter Pack ¼ Liter Pack

Standard size i.e.; ¼ Liter pack is most popular. It is the most profitable package of Haleeb Foods. It was introduced because consumers prefer Haleeb Milk for tea and through research the company comes to know that consumers are demanding small


packs. 250 ml pack is Haleeb Foods star product. Because it has high market share and still market has great potential to grow in future. It is also a convenience product. People plan little to buy it. So it is an impulse product. Haleeb Foods is doing wide spread distribution on convenient location. Haleeb is promoting 1 Litre more, to increase its sales as Candia is failed to capture the desired market and they want Haleeb Milk to capture that market. In product "life cycle" 250 ml and 500 ml packs are still on the growth stage and they have the potential to grow more for about next 10 to 20 years but still to avoid any problems they come up with Haleeb Chota that makes tea only for two Persons.

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 remain 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 1.5 litre Rs. 95 1 litre Rs. 70 500 ml Rs. 38 250 ml Rs. 20

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 without 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, 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.

Promotion:

Haleeb foods have been using both the Push and Pull strategy in order to do the promotion of their products. The budget that they have recently allocated is all you- can- afford budgets. After staying quiet static over the last semi- year or so in terms of its promotional activities Haleeb Foods came up with some extremely heavy advertising campaign through its TVC’s and other print media tools starring some industries most expensive models and some exquisite and eye catching sets which really attracted the consumers attention. The campaign through the print media was also exclusive and was very heavy and could be seen at every signal retail outlet in Lahore which is their most valuable market area wise that they are catering to. Their advertising campaign was only targeted for the consumers but they campaign also especially designed for the retailers in which they were not only given certain posters to place on their shops and walls outside their shops but other than that the retailers were different hand outs in which company, haleeb foods ask the retailers to give assured attention to their product and also explained about the heavy advertisement campaign that they had launched for their product. In that hand out they had asked the retailer to give some special shelf space to their product as a certain pull would be created after all that campaign on TV and through the print media.

Marketing Strategy-----------Current and Proposed


Product

Product Mix: It has three different categories of products which are as follows:a) Dairy Productsb) Juicesc) UHT Milk

1)Dairy products:

Asli Desi Ghee

Haleeb Asli Desi Ghee is obtained from pure milk through the traditional procedure of heating butter slowly. Haleeb Asli Desi Ghee is free from all artificial ingredients; it has pure and natural taste and is nutritionally preserved. It comes with 1 year shelf life.

Haleeb Butter

Daizy Butter is the best natural source of Vitamins A & D for everyone, and by far the ideal way of starting yet another busy day. It is rich in its taste and revitalizes your energy for a long tiresome day.

Haleeb Cream

The premium cream processed hygienically from pure fresh milk, Haleeb Cream is luxuriously rich in its thickness and nutritional value. It promises the richest assortment of tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc. Packed in 6-layered Tetra Pack Brick Aseptic packaging and has a shelf life of 6 months.

Haleeb YogurtMarketing Strategy 34

Daizy Plain Yogurt meets the highest quality standards and gives consumers unmatched quality, freshness and taste with every spoonful. Offered in 450g, 200g and 900g packing, with a freshness seal that keeps the product attributes fresh throughout its life.

Haleeb Tea Max

In tune with the Haleeb Foods tradition of providing consumers high quality and value added products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is special milk that provides a rich taste in your beverage. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging and has a shelf life of 3 months.

Haleeb Cheddar Cheese:

Haleeb Foods makes a new addition, Haleeb Cheddar Cheese, to its healthy and wholesome product range. Discover great taste, premium quality and the power of Vital 3 in every recipe made with Haleeb Cheddar Cheese. Vital 3 is the right combination of calcium, protein and vitamins in Haleeb Cheddar Cheese, which acts as a source to enhance the brainpower, especially for growing children. Haleeb Cheddar Cheese is specially made with Halal ingredients at the state-of-the-art dairy plant conforming to international quality standards. And for the first time in Pakistan, it is also offered in a customized 2 slices pack. The product is sealed and packed in air-tight packaging, which keeps the product fresh and tasty.

2) Juices

Haleeb Good Day

Haleeb Good Day offers consumers a range of 100% pure juices, without any added sugar, flavors or preservatives. For consumption absolutely anywhere and anytime, Good Day's four premium juices (apple, red grape, orange, and fruit cocktail) give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Slim Pack Brick Aseptic packaging with easy opening.

Haleeb Tropico Nectar


Juices play an important role in the functioning of our body, have many benefits associated with them, and help you achieve the desired healthy way of life. Tropico nectar is another product from the house of Haleeb Foods Limited, which is 100% pure nectar, available in three sumptuous flavors including Orange & Mango & Apple.

3) UHT Milk

Haleeb Milk

Consumers everywhere know that only Haleeb Milk makes the best tea ever because of its thickness. Haleeb is pasteurized, homogenized, and standardized pure UHT milk o f the highest standard with 3.5% fats and 8.9% solid non fats. It is Haleeb Foods premier brand, and the choice of quality-conscious consumers who only go for the best. Packed in easy to open, 6-layered Tetra Pak Slim Brick Aseptic packaging, it comes with a 3 months shelf life.

Haleeb Dairy Queen UHT Milk

Dairy Queen is standardized and homogenized pure UHT Milk with 3.5% fat and 8.9% solid non fats. At an affordable price it has won the hearts of consumers everywhere. It is available in 6-layered Tetra Pak Fino Packaging, introduced for the first time in Pakistan and has 3 months shelf life.

Candia Candy Up

With the backup of Candia, Candy Up has been launched especially for flavored milk drinkers, in chocolate & strawberry flavors to the sheer delight of children. The fact that it comes in a bottle makes up for convenient usage as well.

Haleeb Skimz Liquid

Skimz is the only completely fat-free milk with the richness of pure milk. Minus fats, it is an ideal choice for weight-watchers and heart patients. It is also high in calcium


content, which prevents osteoporosis. Packed in a 6-layered Tetra Pack Brick Aseptic packaging, it comes with a 3 months shelf life.

Haleeb Skimz Powder

Skimz offers consumers a high quality 0% fat and hi calcium milk that helps them gets a perfect slim/trim physique. This product is for the consumers who are quality and health conscious individuals who ensure that they consume everything which is right to the best of their knowledge

Brand sign

Daisy Flower

Brand Name

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

Brand Image


Once the brand image is formed, than it is difficult for any other firm to introduced new brand into the market so unless and until it has low price and superior quality. As in packed milk few quality brands are available (Haleeb, Candia and Milk Pack), so people will prefer these brands on the other newly introduced brands.

Brand Equity

Is the positive differential effect that knowing the brand name has on customer response to the product or service.

Product Portfolio Analysis:

The HFL’S management believe that at the BCG matrix, Haleeb falls at the Star. High growth, high share products , and high cash flows characterized products of this category. Haleeb has got 42% share in the market the industry is growing at 15% annual rate and the cash flows are certainly high.

BCG Matrix Of Haleeb:


High

Market

Growth

Rate

Low

High Low

Relative Market Share

The Product market/ expansion gridAnsof Model


Star (Dairy Products) Question Mark ?

Cash Cow (Good Day) Dog

Existing Product New Products

Existing Markets

NewMarkets


Market PenetrationProduct

Development

Market Development Diversification

Product Life Cycle

a) Price: Haleeb milk 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.


a. Pricing Objective:

The objectives of Haleeb foods for pricing Haleeb milk are as follows:1. To achieve a target return.2. To maximize profit.3. Stabilize prices to meet competition.4. Market share Leadership 5. Product Quality Leadership

Pricing Method

The principal of the Ruskin Brown Associates, used a series of demonstrations and case studies during his discussions and communicated to participants effective methods to apply the most profitable pricing strategies for their organizations’ products and services. Some of these techniques included:

Understanding and applying Value Based Pricing Preventing and fighting a price war Knowing the differentials for pricing new products in new & established

markets

b. Pricing Strategy:

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 milk 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.


Elements Of Price

c. Discounts and Allowances:

Discounts are usually related to the distributors and retailers which are confidential and vary. Discount can be given to retailers as well but that would be same for all. Different discounts can be given to wholesalers and distributers on the factors like how much quantity they pick from the company and the same goes for the retailers. Other than that is also depends on different factors like payment terms, that is credit or cash and how


price

list price

discounts

payment period

allowances

credit terms

quickly do they pay off if they are doing so on credit base like the rates would be different if the days of credit taken are longer. Seasonal discounts are also given like in winters the supply from the milk farm is high and the company also has to get rid off to production as well so they are a bit relaxed with the term and conditions.

ADVERTISING

The objectives of the advertisements are very clear, they just want to target individuals who want to use packed milk for tea purpose but here there is a problem. They are always confusing the consumer that what is a product. If it is for tea then they should come up with only tea. They have committed such types of mistakes in the past.In order to solve a problem they should come up with a new brand name, they come up with Candia but they are not able to communicate the right message that means they were focusing on children rather than focusing drinking purpose.

Advertising Budget:

First of all a good advertising campaign designs for new promotion and related advertisement depends upon the per unit sale of that product. Candia Milk advertisements are no longer running on T.V because it was not able to reach its sale targets.

Advertising Strategy:

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 choose 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.

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.

Direct Marketing- 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.

Others:

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 should 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.

Place


Placement strategies: Haleeb foods use more than one strategies for placing its

products. They use stands in retail shops. They also provide freezers to shop Marts. This also help them to maintain its image in the consumer mind. This also helps the shopkeepers to keep Haleeb products.

BUDGETS AND CONTROLS:

RECOMMENDATIONS

Haleeb Foods Limited (Formerly HFL Foods Limited) is advertising its products through the ATL (Above the Line Activities) it should also give emphasis to advertise its products through the BTL (Below the Line Activities).

Human Resource Department of Haleeb Foods Limited should introduce HRIS (Human Resource Information System) to increase the efficiency of the Department.

The co-operation among the different departments of Haleeb Foods Limited should Improve their communication network. 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 that the company can show its loyalty. So that the company could have the feedback of the customers regarding the products and image of the company.

Haleeb Foods Limited has introduced Haleeb Good Day 100% pure Juice in 1 liter packing they should also introduce the Haleeb Good Day 100% Pure Juice in 250 ml packing to increase the market share.

The shopkeepers complains that Haleeb Foods Limited do not provide replacement to the expired products so they should provide proper replacements to the shopkeepers to enhance the company image.


Haleeb Foods Limited should improve its distribution system especially retailers are not happy with the distribution of Haleeb Milk.

References:

After having studied and analyzed the marketing mix , SWOT analysis , PEST

analysis , BCG matrix of Haleeb milk, it has been observed that secondary

associations are the great forces for any BRAND and they should manage it properly

for their brand. A strategy, which could be work, is that they should link more with

taste in order to register in the mind of consumer. The ad should be of better at least

it should be creative so that their unique and secondary association should be

emphasizes more. The slogan of HALEEB should be change and some other slogan

should be there in which the unique association is more emphasize. HALEEB should

make stronger, favorable, unique associations. In fact their existing association

THICKNESS and PURITY is not that much strong as it should be in the mind of the

respondent. Company should develop point of difference strongly than point of

parity. This will help them in positioning.

Promotion:


Promotion is mainly conducted through IMC because it provides a complete blend of all the resources that are needed by the company to enforce its sales and at the same time to portray a desirable image as thought in the company meetings.


Date post:	26-Nov-2014
Category:	Documents
Upload:	mukarram-shahzad
View:	672 times
Download:	9 times

Haleeb Foods

Documents