Listen to the Sound of the Day

Yesterday, Today & Tomorrow

By
Naveed Ahmed Khawaja

Date: 19th November 2009

A Company with a Heart and Soul

Our Products
The History of EBM
• English Biscuit Manufacturers (Pvt) Ltd was established as a joint
venture company in 1965 with the name of PEEK FREANS
PAKISTAN LIMITED

• In 1966 the UK sponsor company was renamed as Associated

Biscuits International Limited (ABIL), while the venture was renamed
to English Biscuit Manufacturers (Pvt) Ltd, which stands to date

• EBM started manufacturing and marketing of world famous Peek

Freans range in 1967 in order to provide Pakistani consumers with
good quality, nutritious and hygienically packed biscuits

A Company with a Heart and Soul

The Industry Issues
• The Early Years - 70’s
– Economic Challenges
• Rupee de-valuation, Labor Unions unrest, Surging imported RM
prices, Market too small (branded biscuits)
• EBM making losses everyday
– Tethering on the brink of bankruptcy
– Incurring losses of Rs 5000/- per day

– Traditional & Old style Biscuit industry

• BP – Montgomery – Sunshine etc.
• Branded market small & stagnant
• No concept of “Strong Branding”, “Positioning”
• No Product innovation/ differentiation etc.

A Company with a Heart and Soul

Key Challenges
• Leadership Challenge
– Shake & revive the industry
– Bring Change through Competition
– Achieve Growth in branded biscuit industry

• Strategy & Branding

– Create need & niche
– Biscuits considered as a Luxury food item & not a necessity
– Introduce Branding & Positioning
– Bring Product & Packaging innovation
– Grow Vol. share to survive
– Invest in Technology & R&D

A Company with a Heart and Soul

The Strategy of 70’s
• Taking Competitive Edge
• Biscuits marketed as “food in between meals”
• Biscuits marketed under PF & EB umbrellas
• Through strong & modern “Branding”
• The Pied Piper concept launched
– The Sound of Yesterday, Today & Tomorrow
• The Legend Leads
• Gained Instant Popularity, Awareness, Relevance, Trial and
Loyalty
• A larger than life icon…

• But the Total Market did not grow!

• Competition did not compete

A Company with a Heart and Soul

The Strategy of 70’s contd...
• Grow the total Market
– Created Competition from within
– Launched another brand range “Happy”
– Created competition in branded biscuit ind.
– Overall Market grew by +30%
– Market growth attracted a mushrooming of entrants
• Union, Montgomery, AB Foods, etc

A Company with a Heart and Soul

The Strategy of 80’s
• The mid-Years - Era of Market Growth
– Grew market leadership through launch of new innovative
products
• Introduced Premium products i.e. Farm House Cookies (87-88)
• Introduced the EB Royal Range (88-89)

• Entry of Danone through CBL i.e. LU brand

• Competitive environment fuelled further market growth

A Company with a Heart and Soul

The Strategy of 90’s
• Intense competition & market growth
– EBM market share slipped
– Standing Still…. Was not an option
– A change was imminent
– With increasing input costs, increasing competition &
market share slip strategic business decisions had to
be taken
– EBM adopted a “high volume, low margin
strategy”

A Company with a Heart and Soul

The Strategy of 90’s contd…
• Price Increase Freeze in mid-90’s
– Objective
• Create barriers of entry for new entrants
• Make biscuits more affordable for consumers to aid conversion
from loose biscuits to packaged
• Allow economies of scale & capacity utilizations
– Outcome
• Market grew volumetrically
• Small players crashed out as their scale of operations could not
sustain the price freeze
• EBM focused on increasing internal efficiencies
– New plant expansions
– Balancing, Modernization & Replacement (BMR)

A Company with a Heart and Soul

 The Strategy of 2000 & Onwards
• Current Times – Era of EBM Growth
– Continue Price Freeze till 2007
– Continue High Volume, Low Margin Strategy
– Focus on Increasing Internal economies and efficiencies
– Cost reductions without impacting product quality
• Self-power generation
• Reduction of product wastages
• Increase in plant efficiencies (new plants)
• Focus on long-term contractual agreements for raw materials procurement
• Alternate sourcing of packaging material (imported vs. local)

• No compromise on the product quality via any cutting of corners

– Ensuring that the consumer is not cheated
– Trust and confidence is maintained

A Company with a Heart and Soul

The Strategy of 2000 & Onwards contd…
• Market Penetration Strategies

– Product Launches & Re-launches

– EBM’s true Marketing Success Stories
• Sooper Re-launch - leading the turnaround of business & growth
of overall biscuit market Sooper 1.avi Sooper 2.mpg
– Capitalizing on Market Leadership Position
• RIO Double Treat – product innovation (2 creams)
• Marvell – Product Innovation in Shape
• Party Re-launch
– Seeking new consumers through new consumption
occasions
• Sandwiches Re-launch – Over 40 years old brand
– Tapping up-country markets
• Peanut Pik & Pista Re-launch

A Company with a Heart and Soul

The Strategy of 2000 & Onwards contd…
• Focus on increasing Distribution Penetration into Rural
Markets
– Rural Development Programs
– Opening of New Towns & Direct Servicing

• Focus on Demand Generation

– Out-spending competition on media
– Trial generation & repeat purchase
• Consumer Promotions
• Brand Activations
– Heavy investment behind CSR initiatives to project positive
brand & company image

• Demand of Brands > Ability to Supply

– 5 Focus Brand Strategy
A Company with a Heart and Soul
How did we do that ?

“Power of Vision”
 Vision
• To be recognized as a LEADING and
PROGRESSIVELY FORWARD looking FOOD
COMPANY, providing the best quality products to
everyone in Pakistan

• To be an INSTITUTION financially healthy,

promoting universal human values and growing as
a useful, purposeful corporate citizen

A Company with a Heart and Soul

Corporate Objective
• Transform EBM into a living institution with a
body, mind & soul which is recognized as a good
corporate citizen due to its core values as Open
minded, transparent, & responsibly delivering
consumer satisfaction with a sprit to excel.

A Company with a Heart and Soul

Core Values
• Follows the Highest Ethical Values & Professionalism

• Believes Product Quality is next to religion

• Pursues International Safe Food Standards & Hygiene to

promote National Health since its very inception

• Environmentally sensitive & responsible

• Attains Technological Advancement in both human resources,

plant & machinery

A Company with a Heart and Soul

Our Philosophy
• Food is “Rizk”

• “Hygiene” a part of a bigger concept of Pakeezgi

• What is the concept of PAKEEZGI for us at EBM?

 Innate realization that the Food we offer, MUST be of the

highest Quality
 Hygiene at the work-place
 In our THOUGHTS & ACTIONS
 In having a SENSE of RESPONSIBILITY and the HEART to
do what’s right

A Company with a Heart and Soul

Sense of Responsibility
Towards Consumers
– Ensuring Quality & Affordability
• No compromise on product quality
• Focus on improving internal efficiencies & economies of scale

– Offering the best Quality & Taste

• Adherence to International Quality Standards
• First Biscuit company in Pakistan to attain HACCP & ISO 9001-
2000 Certifications
• State of the art manufacturing processes with investment of over
Rs 2 billion

A Company with a Heart and Soul

Sense of Responsibility
Towards the Nation
– Company contributes over Rs 850 million to the National
Exchequer in the form of Taxes & Duties
• Clubbed in the elite group of highest tax-payers

– Provides Employment (direct & indirect) to over 2000 ppl approx

– Company ethos of a Caring Corporate Citizen

• As a Responsibility
• As an Obligation of Good Governance

A Company with a Heart and Soul

Sense of Responsibility
Towards the Nation

We make the world around us better.

A Company with a Heart and Soul
Sense of Responsibility
Towards the Nation
– Sensitivity to the Environment
• Proactive Environmental
practices
• Water Treatment Plant
• Separate Area for Solid Waste
Management
• ISO 14001 Certification
• Only Biscuit company to have
received the Environment
Excellence Award for 5
consecutive years

A Company with a Heart and Soul

Caring Corporate Citizen
• Primary focus of Corporate Social Responsibility
(CSR) initiatives on 3 key areas:

• Health HEALTH
• Education
• Sports
EBM

EDUCATION SPORTS

A Company with a Heart and Soul

Sense of Responsibility
Towards the Nation

A Company with a Heart and Soul

Where are We?

“LAST SEVEN YEAR

HIGHLIGHTS”

01-02 TO 08-09
 Sales Volume – Master Cartons +17%

-2%

31%
6511223
5,900,000
31% 5,577,5825,587,576

5,400,000

4,900,000
48%
4,244,828
4,400,000

3,900,000

3,400,000 3,065,518
81%
2,900,000
11%
2,400,000 2,074,804

1,900,000

1,400,000 1,028,5781,144,607

900,000
'01 - 02 '02 - 03 '03 - 04 '04 - 05 '05 - 06 '06-07 '07-08 '08-09
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
5

A Company with a Heart and Soul

A Company with a Heart and Soul
A Company with a Heart and Soul
Recognized as

A Company with a Heart and Soul

A Company with a Heart and Soul
The Mantra
• Leadership
– Power of Vision (No Dreams – No Gains)
– Magic of a Rallying Call
– Directing Peoples Power, Energy, Exuberance & Passion
– Make the Change happen

• Branding
– Learn to reject, Research & Explore, Spend time

• Technology
– Invest ahead of time, Be the 1st to introduce, Take risk

• Customer Care
– Suit your business to customers needs, otherwise
– Customers will suit themselves

• Work Environment
– Open, Challenging, Competing, Empowering, Team working & Fun working

The Harder You Work…The Luckier You Get!!

The Future
• God has been kind to us
• Our Consumers have been kind to us
• We have lived up to their trust and confidence in our
company and brands through our Marketing initiatives
• Aggressive marketing plans for the future
• We have glorious past…an enviable present and God-
willing, a prosperous future ahead of us where the
Sound of Peek Freans will continue to keep resounding
in your hearts

A Company with a Heart and Soul

THANK YOU

A Company with a Heart and Soul