Executive summary

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

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

This project report covers the broad area of impacts of

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

An important part of this project report comprises the market

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

1
 Then comes the most important portion of the company’s
operations, which is the strategic management of marketing mix I-e 4Ps.
A comprehensive detail is provided about the company’s strategies
devised to maintain and develop the product line (juices), strategies to
set and quote the prices, their distribution patterns and logistics. The
image Haleeb wants to develop in the minds of their customer and the
extent to which they are succeeded through their promotional
campaigns is explained in this report.

The future expectation and objectives about the company’s financial

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

Haleeb Foods has built yet another plant in Rahim Yar Khan whose
purpose is to provide Haleeb’s quality products to maximum number of
consumers. And a plan to extend their product line in case of juices and
has an intention to introduce new flavors of pure juices, nectars and juice
drinks.

2
Introduction of HFL:

HFL is now one of the fastest growing packaged food companies in

Pakistan with an annual turnover of Rs. 9.2 Billion (F2006). It is a
private limited company. It started commercial production in July 1987.
Due to consistently superior performance, it has achieved undisputed
leadership in the liquid packaged milk category with a market share of
over 52%. HFL has a very strong brand portfolio consisting of dairy as
well as non-dairy products.

Haleeb Foods has segmented its product portfolio in 3 leading brands

including Haleeb, Candia and Tropico. Haleeb is the flagship brand of
the company. Haleeb UHT Milk is available in 5 Sku’s of Tetrapak
packaging. Due to its strong positioning of the thickest milk for best tea,
it has the highest top of mind awareness and penetration in the dairy
industry of Pakistan. In order to increase consumer and trade
penetration of the brand, it is also available in Tetra Fino Packaging
under the brand extension of Haleeb Dairy Queen.

Haleeb has also progressively diversified from UHT Milk to other

product categories as well. These product line extensions include
Haleeb Butter, Haleeb Yogurt, Haleeb Cream, Haleeb Labban (Drinking
Yogurt), Haleeb Asli Desi ghee (Butter Oil), Haleeb Funday Juice Drink,
Haleeb Skimz (skimmed milk), Haleeb N'Rish Full Cream Milk Powder
& Haleeb Good day Pure Juices. Haleeb Good day is the only range of
100% pure juices in the country with a variety of 6 pure juice flavors.

Haleeb Foods, having a Franchise agreement with Cadillac France,

launched Candia Double Sterilized Milk in bottle format in April
1999. Candia is also available in the Candia Classic variant which is
positioned for Tea. Another recent initiative is Candia Candy Up,
which is flavored milk for children.

HFL has one of the largest nation-wide distribution networks

delivering high quality products, even in the remote areas of
Pakistan. With a network of +1100 distributors the company ensures
that the product range is available in all the urban and semi urban

3
areas of Pakistan. Furthermore, concerted efforts are being made to
develop the rural market as well.

HFL has an efficient and resourceful Export department, which has

successfully tapped opportunities in foreign markets including
Korea, Hong Kong, USA, UK, China, Afghanistan, Bangladesh and
the Middle East.

In order to provide best quality products to its consumers, HFL has a

well-developed supply chain infrastructure. It has heavily invested in
a vast network of company operated milk collection centers across
the country. HFL has a strict and stringent quality policy regarding
intake of raw milk. It is the only company that conducts 21 rigorous
quality tests to ensure that only fresh milk of the highest quality is
accepted at the plant premises. These internationally recognized tests
are used to check for: a) adulteration, b) microbiological
contamination and c) adequacy of nutritional contents. Further,
Haleeb Foods is the only food company in Pakistan that has the
following international certifications of quality and prestige:

 HACCP (in process controls for safer products)

 ISO 9001 – 2000 (better quality for greater customer

satisfaction)

 ISO 14001 (environment-friendly operations)

HFL believes in using cutting edge processing and packaging

technologies to meet consumer expectations of hygienic and high
quality food products. It has more than 30 Tetra machines for its
UHT milk brands and 5 UHT units with a capacity of producing more
than 1 Million Liters of Milk everyday. Keeping in view the volume
potential and increasing growth trend of the market, the company
has recently inaugurated a second independent UHT plant at Rahim
Yar Khan.

Haleeb Foods has a highly professional management team with a

progressive operating style. The management team comprises of
highly seasoned professionals with diverse global experience of

4
managing and developing brands. It can lay claim to be one of the
very few Pakistani organizations, which are truly following the model
adopted by globally successfully corporations, with clearly defined
roles for shareholders and the management team.

The company takes pride in being a model national organization

delivering international quality products and higher value for money
to its consumers. The management team at HFL strongly believes
that Pakistan offers enormous potential for food business due to a
large consumer base, high acceptance of packaged food, and a
growing urban middle class consumer segment.

5
 History:

Haleeb Foods Ltd. was incorporated on July 1st, 1984 with

a capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was
renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited.
At that time it had the capacity of producing 80,000 / liters of milk per day having
total area of 32 acres. Initially 150 people were employed at the plant. The production
process started with UHT liquid milk. The liquid milk was the first product launched
in the market, it started its operation in 1985 at that time 20 other dairy plants were
also coming in, and all those including MILKPAK were using obsolete technology
that was used in EUROPE. Haleeb Plant was the only plant based on the latest
technology and the basic idea behind that were particularly dairy foods products.
Haleeb is one brand that is toady known everywhere.

From November 1989 till December 1991 Haleeb had a joint venture with fries land
Frico Domo of Netherlands. This joint was amicably dissolved on account of FFD's
change in management in their global strategy. Today as an ISO 9002 certified
company, Haleeb is the dominant market leader of UHT milk in Pakistan by
capturing 52 % share.

Franchise agreement with Canada, a market leader in the liquid milk market in
France, was assigned in December 1998. Under this arrangement, the company
launched Candia range of value added liquid milk product and also have assess to
latest production, technical and marketing know how. Initially company
launched different products but some of them could not become
successful. As the company's core concern is quality eventually company
abandoned products that were not according to the market needs. In
2002 the company contributed 54% to the country's packed milk market.

6
Haleeb Foods was established in 1986 as a private limited company and its first
product was Haleeb milk. Since then, it has continued to provide quality
products to its consumers with product and packaging innovations. Other
products and their dates of launch are as follows

7
Year of Launch of the Products:

1997 Haleeb Asli Desi Ghee

1998 Haleeb Cream, Candia Skimz Milk Powder

1999 Candia Milk, Candia Skimz Liquid Milk

2000 Tropico Juice Drink, Haleeb Dairy Queen

2001 Haleeb N'rish Instant Full Cream Milk Powder

Haleeb N'rish Fortified Instant Full Cream Milk

2002
Powder

Candia Tea Max Dairy Whitener, Haleeb Butter,

2003
Haleeb Plain Yogurt, Haleeb Lassi Drink

Haleeb Good Day Pure Juice, Haleeb Fun Day Juice

2004
Drink, Candia Candy'Up Flavoured Milk

Haleeb Cream With Honey, Haleeb Tea Max with

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

Haleeb Reshmi Pack, Candia Classic, Skimz Pouch,

2006
Tropico Nectar

2007 Haleeb Cheddar Cheese

8
Information about Haleeb Foods

Legal Representative/Business Owner:

 Mr. Suleman Daud

Board of Directors:

 Mr. Ilyas Chaudhry

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

Chairman:
Mr. Ilyas Chaudhry

Managing Director:
Mr. Israr Ahmed

9
 Auditors:
Hameed Chaudhry and company

(Chaudhry Accountants)

Legal Advisor:
Hassan and Hassan Advocates

Marketing Research:
Aftab Associates

Advertising Agency:
Paragon Evernew Concepts

Trade & Market:

Main Markets: Pakistan, North America, South America,

Western Europe, Eastern Europe, Eastern
Asia, Southeast Asia, Mid East, Africa,
Oceania

10
Work Force:
It has a team of 3000 exceptional individuals to support its
operations, out of which

 900 are permanent employees

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

Market Share:

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

Area:

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

Distribution Channels:

11
 Haleeb foods is not directly selling the products. It has distribution
channels. Firstly Haleeb foods supply their products to their distribution
channels and then products delivered to the customers.

Position of Haleeb foods:

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

also operates as a franchise of Candia Cedilac of France.

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Competitors:
Haleeb foods competitors are:

Nestle

Good Milk

Olpers

Shehzan

Location of Offices & Factory:

Head Office:
135 ferozpur road Lahore 5460 Pakistan
Phone +92 42 111 135 135

Fax +92 42 759 0376

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

13
 Location of Factory:
There are two plants of Haleeb foods

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

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

International Certification:

Haleeb Foods is the only food company in Pakistan that has the
following international certifications of quality and prestige:

 HACCP (in process controls for safer products)

 ISO 9002 (better quality for greater customer satisfaction)
 ISO 14000 (environment-friendly operations)

Haleeb’s Policy:

 Build branded food business to improve quality of life by offering

tasty, sage, hygienically processed, and affordable, highly nutritional
food products through environment friendly processes to our
customers while maximizing stake holders' value.
 Meet the requirement of all relevant legislation and regulation related
to consumer satisfaction & safety, environment and other applicable
laws etc
 To prevent pollution through controlling levels of harmful emission,
effluents and other wastes.
 Contribute to safe and healthy environment for our country.

14
 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.

15
Organ gram of Human Resource Department

Head of Dept.

GM Finance
sheikh Shahid Mohsin)

HR Manager

(Main umer Saleem

AM ER Personnal Assistant Manager AM ER Personnal HRD Manager

Rahim Yar Khan Head Office Bhai Pheru (Omer Hassan Janjua)

16
BRAND PORTFOLIO OF HALEEB FOODS LTD

A Haleeb food is a customer oriented organization so it is

manufacturing the products for every kind of consumers. Haleeb foods
have a very rich brand portfolio with national and international brands.
In order to provide their customers the wide range of products Haleeb
Foods Ltd. is using every kind of management strategies like it was
having a merger and franchise with two foreign companies.
One of the core competencies of Haleeb foods is their variety of
products that they are using branding strategies in order to compete with
rivals of dairy products, multi branding, brand extension and line
extension. The wide range of products of Haleeb foods is the major
contribution towards the success of the company.

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Haleeb UHT Milk

18
Good Day Fruit Juice Tropico Juice Drinks

Dairy Queen UHT milk

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Haleeb Gold milk

Skimz Milk

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Manufacturing process at Haleeb Foods

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

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

Following steps are including in the process of Haleeb Milk.

1. Collection of raw milk

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

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22
 Vision
“Most innovative and fastest growing food
company offering products enjoyed “every
home every day”

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24
25
PROPOSED VISION STATEMENT

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

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

PROPOSED MISSION STATEMENT

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

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

26
External environment – remote

environment

Economic forces

Scenario

UInflation & Interest Rate:

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

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

Personal Saving Rate:

Personal saving rate of HALEEB is 5%

Disposable & Discretionary Income:

27
 Disposable & Discretionary Income of HALEEB is 95%.

Business Saving Rate:

Business Saving Rate of HALEEB is 10%.

Energy Availability & Cost:

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

Budget Deficit OR Surplus:

There is no deficit but 8% surplus of HALEEB.

Rate of risk:

For HALEEB FOODS Rate of risk is 5%.

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Overall HALEEB FOODS business cycle:

BUSINES LIFE CYCLE

29
Implications

Opportunitie Rati Threats Rati

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

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

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

likelihood of occurrence.

30
Porter’s five Model

1) Threats of new entrants:

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

� ·Accesses to distribution channels are very high form all

companies exist in market.

� ·High capital requirement for new company to enter in

market due to high competition

� · Product differentiation is good feature from all

companies which is also a barrier for new comers.

2) Bargaining Power of supplier:

Suppliers of the raw material of juices specially of Plump of

fruits are powerful in following points:

 They are dominated because they are few numbers.

 Their product is very important input of Haleeb juices.

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 Supplier product has high switching cost for Haleeb
Food Company.
 Supplier of Haleeb juices plump has no substitude

3) Bargaining Power of buyer:

There are in following point Haleeb food company is

strong

� Haleeb present the threat to supplier of backward integration.

� Haleeb food purchase plump of different juices from different
companies so Haleeb purchases are more as compare to one

supplier.

4)Threats of substitude products:

There is only one threat for juices of Haleeb in substitude

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

32
Pest Analysis:

POLITICAL CONDITIONS: The political conditions are not very stable in

the country, but this does not directly influence the trends and spending patterns of
the customers. There are no restrictions or barriers on the growth of this industry. So
the political conditions are favorable fir this market because food and dairy chain
products are consumer goods and they have to purchase it in any condition.

ECONOMICAL CONDITIONS:

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

SOCIAL CONDITIONS:

The social patterns are changing in the country, as the world is becoming a global village,
and mutually share and accept patterns. People are becoming more attractive towards the
branded products. It is becoming fashion and young generations as well as the children are
getting more attracted towards this industry. People are moving towards branded food /
dairy products due to hygienic reason.

TECHNOLOGICAL CONDITIONS:

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

33
SWOT Analysis

Strengths:

 Haleeb Foods is the largest National Food Company.

 Strong brand loyalty of customers of Haleeb company.

 Haleeb Company has monopoly situation in different flavors of pure

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

 Haleeb offer high quality products especially pure juices in market.

 Management team of Haleeb Company is very strong and educated.

 Haleeb foods have strong positioning in customer mind.

 No 1 dairy company
 Efficient Distribution networks through out the country
 Haleeb Food's products enjoy strong brand image and market pull.
 Innovative and constantly growing product line.
 Sales force is the major resource strength in terms of physical resources of
the company.
 Marketing strategies established by the company are innovative and lure
customers.
 Financial, marketing and sales strategies are formulated by gauging the
customer demands.

34
 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.

 Packaging of juices product is not good, and not so much attractive.
 Haleeb company has very high prices in pure juices like apple, pineapple,
mix fruit, red grapes mango flavor.
 Haleeb Company conducts less promotional activities for its juice
products.
 Less display centers use for juices 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.

35
 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.

Opportunities:

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

 The concentric diversification in different juices products.
 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.

36
 CDL has been changed to HFL, so this change in name can help them to
attract foreign customers.
 HFL can go for related diversifications by producing pure juices and flavored
yogurt.
 HFL can go for joint venture with other companies to attract the market
share.
 Entering in to the market of baby cereals, which will help them in increasing
their revenue.
 Launching cheese would also beneficial for them to create the brand awareness.

Threats:

 There is strong competition in food products market.

 Different strategies adopted by competitors Nestle in juices
products
 New product advancement by different competitors.
 Government policy changes and fluctuation in tax rates on
food items.
 Imported tin juices are great threat for good day.
 Changes in Custom duties on plump.
 Competition with Nestle, Engro Foods.
 Effect of Seasonal ties upon sales.
 Dependency on contractors for supply of milk.
 Price fluctuations due to rupee devaluation as raw material are
imported.
 The uncertainty of economic conditions poses a great threat.

37
 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.

38
Summary of Opportunities:

Significance of
opportunity High Low

High •

o Concentric

Probability diversification
Of
Occurrence
• Backward
integration o To become

Low
Untapped multinational
market

• Demand of
juices

39
 Untapped market and Demand of juices are the high opportunity for Haleeb
and probability of occurrence is also very high so Haleeb juices sales can increases if
it target the all market and demand is increase in market day by day and Haleeb
also increase the demand and awareness of juices in market by best advertisement.

Concentric diversification is not the high opportunity but probability and

occurrence is high because the Haleeb can increase sale by little change in the flavor
of juices.

40
 Backward integration is the high opportunity foe Haleeb but probability of
occurrence is low because it very difficult foe Haleeb to make its juices plump itself
because Haleeb import the high quality of plump from different countries which it
can’t prepare due to lack of technology.

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

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

Summary of threats:

Significance of threat
High Low

Strong market
High
Competition
• Low Switching
Nestle strong Cost
globally
Probability •
Of Fluctuations in
tax rate
Occurrence
• Imported Tin Custom duties on
juices o
import of plump
Low
•

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

40
There is not any huge difference in prices of different juices of the company so
customer can any time select juice of different company which is threat for Haleeb
Food Company.

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

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

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

42
Situation analysis – Internal capabilities

Non marketing capabilities

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

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

REVIEW:

Many of the non marketing capabilities are strengths of the Haleeb

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

IMPLICATIONS

Strengths Rating Weakness Rating

Financial Position 4 HRM 3
R&D 3 Competitive
position 2
Interfunctional 3
5 in juices
Coordination
3

Management

Production
capability

43
Note Rating is based on a 5-point scale degree of significance and for
likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly
significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very
significant’ (1).

The probability of occurrence ranges from ‘high probability of

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

Marketing capabilities – Management

(Marketing organization, market intelligence, market planning and

market control process)

REVIEW

Marketing department of the Haleeb food Company specially in

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

44
IMPLICATIONS

Strengths Rating Weakness Rating

Market intelligence 4 Market control 3
Market organization 3 Promotional
process 3
campaigns
Organization 3
Market planning
positioning 4 in juices

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

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

The probability of occurrence ranges from ‘high probability of

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

45
 Internal factors evaluation (IFE)

Haleeb Foods Weight Rating Weighted

Company
Internal Factors Score
STRENGTHS

• Largest National food 0.05 4 0.2

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

Total weighted Score 1.00 3.15

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

46
 External factors evaluation (EFE)

Haleeb Foods Company Weighted

Weight Rating
External Factors Score

OPPORTUNITIES
• Untapped market 0.20 4 0.8
• Diversification in products 0.10 3 0.3
• Backward integration 0.15 3 0.45
• International markets 0.05 2 0.1
THREATS 0.10 3 0.3

• High market
Strong competition
competitor Nestle in 0.15 4 0.6
•juices
Products advancement 0.05 3 0.15
• Fluctuation in tax rates 0.05 2 0.1
• Imported juices 0.05 2 0.1
• Custom duties on plump 0.10 2 0.2
TOTAL 1.00 3.1

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

47
 CPM (Competitive profile matrix)

Haleeb Nestle Shahzan

Critical Weight RatingScore Rating Score Rating Score

Success
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 0.10 4 0.4 4 0.4 2 0.2
Customer
position 0.15 3 0.45 3 0.45 4 0.6
Market share
loyalty 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 3.50, so the Nestle performing
is the best as compared to their competitors in juices.

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

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

48
SOWT MATRIX OF HALEEB FOOD

47
 STRENTHS(S)

48
  Haleeb offer high quality WEAKNESS(W)
products especially pure juices in
market.  Packaging of juices
 Haleeb Foods is the largest product is not good, and
National Food Company. not so much attractive.
 Management team of Haleeb  Haleeb company has very
Company is very strong and high prices in pure juices.
educated.  Less promotional
 Haleeb foods have strong activities for its juice
positioning in customer mind. products.
 Haleeb foods have best  Less display centers use for
distribution channel in all over juices products in main
the Pakistan. shops of different cities.
 Less product awareness in
customer mind.

OPPERTUNITIES(O)
SO strategies. WO strategies.
 There are a lot of untapped
markets in different areas of  Extensive marketing
Pakistan.
 The concentric diversification in  Market development campaign.
different juices products. (S1,O1)
 Backward integration can use in (W1,O1)
juice products  Product development
 It can become multinational and
can target different market of (S4,O5)
different countries.
 Usage rate of juices is
increasing

THREATS(T)

 There is strong
competition in food
products market. ST strategies. WT strategies.
 Different strategies
adopted by competitors  Positioning as quality  Increase budget on
Nestle in juices products product among packaging &
 New product consumer.(S1,T1) promotional activities
advancement by different
 Acquiring the local (W1,T1)
competitors.
competitors(S5,T3)

48
 Quantitative Strategic

Planning Matrix
(QSPM)

Haleeb Food Company Weight ProductMarket

Factor analysis AS development
TAS development
AS TAS
USTRENGTHU
• Largest National Food 0.05 4 0.20 4 0.20
• Strong brandCompany
loyalty 0.10 4 0.40 3 0.30
• Monopoly situation in 0.15 2 0.30 3 0.45
juices
pure 0.05 4 0.20 2 0.10

• •Strong
Product positioning
distribution 0.10 4 0.40 3 0.30
•channel
High quality products 0.10 4 0.40 4 0.40
• Strong management 0.05 3 0.15 4 0.20
WEAKNESS
team 0.05 3 0.15 2 0.10
• mind
Product awareness in 0.10 - - - -
customer
• Not good
Higher packaging
prices in pure 0.05 2 0.10 2 0.10
•juices
Low promotion 0.10 4 0.40 4 0.40
•activities
Less display centers 0.05 3 0.15 2 0.10
• Late recovery of 0.05 - - - -
claims
OPPORTUNITIES
0.20 2 0.40 4 0.80
• Untapped market
• Diversification in 0.10 - - - -
•products
Backward integration 0.15 3 0.45 4 0.60
• International markets 0.05 1 0.05 4 0.20
THREATS
0.10 3 0.30 3 0.30
• High market
•competition
Strong competitor 0.15 4 0.60 4 0.60
Nestle in
• Products 0.05 3 0.15 4 0.20
•advancement
Fluctuation in tax
juices 0.05 - - - -
•rates
Imported juices 0.05 4 0.20 3 0.15
• Custom duties on 0.10 - - - -
plump
Total 5 5.5

49
According to this result Haleeb Food Company goes for Market
development in different remote areas of Pakistan, because many markets
in Pakistan are untapped if Haleeb target all these market it can increase
its sales and can gain a lot of profits.

53
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55
56
57
58
59
60
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

61
FINANCIAL ANALYSIS

200 200
Sales Growth % 19.26
7 26.
8
57
Gross Profit Margin % 15.39 14.6
5
Operating Profit Ratio % 7.69 7.0
3
Profit Before Tax % 6.86 6.41
Profit After Tax % 4.88 3.9
2
Pretax Profit Growth % 27.70 23.
00
Net Profit Growth % 48.44 21.3
5
*Current Ratio 1.07 0.9
0
Fixed Assets Tunover Times 6.61 6.41
32.6 30.
Return On Equity %
1 82
Return On Total Assets % 15.7 14.
3 03

* while calculating Net Working Capital and Current Ratio , Current

portion of liabilities against assets subject to finance lease is not
accounted for.

62
Segment Financial and Market

Attractiveness

Segment
Estimated

(Rs million) GOOD DAY TROPICO FUNDAY

Sales 1 2 5 3

Variable costs 2 5 8 6

Contribution margin 3 10 7

Market share3 18 22 11

Total segment sales 2% 5% 1%

63
Segmentposition:

Business strength High Medium Low

Attractiveness Medium Medium Mediu
m

64
SALES FORECASTING
= 162419946
Total population of Pakistan
Target people having age 5-above
People having age above 5 = 90 % of 162419946
= 146177951.4
People who like other juices = 75 % of 162419946

and drinks = 109633463.6

People who willing to drink
= 36544489
Haleeb juices
Price range = 10 + 25 + 65
Average price = Rs.33
Avg Quantity =2
Sales = 33 * 2 * 36544489
= Rs.2411936274

PROJECTED INCOME STATEMENT

Rs
Sales = 2411936274
Cost of goods sold = 2098360250
Gross profit = 313576024
Administration Expenses = (34691250)
Distribution cost = (81477000)
Operating profit = 197407774
Other income = 2591400
Profit before interest

64
and taxes = 199999174

Tax = 49145950
Net profit = 1508532
24

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

So in order to remain competitive at market place

they have to focus extensive marketing campaigns so
that they can capture potential customer. In order to
attain and retain the existing customer they have to
offer discounts , occasional offers etc.

64
Page 67
A. ACTIVITIES TO BE IMPLEMENTED

 Sales representatives target all the untapped markets and

niches, by using current products.
 Revenue objectivity should be given high attention , and it
should increase by 45% every year (for the next 3 years.)

 Product line should be extended by adding new flavors of

juices.
 Related and unrelated diversification in the form of eatables
, made up of fruit extracts and food pulp.
 Role of R&D should be increased to help
a) target markets most effectively

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

 More budget and resources should be allocated to

advertisement and sales promotion.

B. HOW IMPLEMENTATION TO BE DONE

Develop desirable skills in the employees who are assigned the

basics of target implemented these skills may include.

 The ability of sales force, personnel in finance department

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

Page 68
 C. RESPONSIBILITIES FOR IMPLEMENTATION

 Create the effectiveness of the personnel to focus on

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

1. Organizational Design
Organizational design should consist of multifunctional teams,
including at least 1 member of each department to solve the problem
or to achieve the targets.

2. Incentives
Various rewards may help achieve successful implementation.
For Example in case of Haleeb juices, bonuses or commission should
be given to members of sales force/personal selling teams who sales
more units of juice packets.

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

D. TIME AND LOCATION OF IMPLEMENTATION

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

Page 69
Page 70
They get comprehensive information from all the departments
carefully and its analysis is conducted with great care . The results are
analyzed with great emphasis on the company’s behalf. If there
appears any deficit then revise their strategies implement them and
then get the results and if there are no loopholes found they continue
to implement that strategy for the specified period of time. This
evaluation conduct twice a year.

Page 71
 Strategic Marketing Evaluatio and
Control

Conduct strategic marketing audit

Select performance

criteria, measures, and metrics

Obtain and

analyze information

A s s e s s p e r f orm and
take necessary a c t i o n

Page 72
Page 73
CURRENT COMPETITIVE POSITION

Haleeb competitive position is quite superior to other competitors.

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

WHAT SHOULD COMPETITIVE POSITION BE IN 3 YEARS

TIME?

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

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

WHAT ARE THE STRATEGIC IMPLICATIONS – IN TERMS

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

o Haleeb should introduce more innovative products in the market

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

o Whenever Bata open its new distribution centre Servis take

advantage from its strategies and open a store in front of their
store, Haleeb should take steps to overcome this threat.
o Bata should gain the sustainable competitive advantage.
Page 74
 o Most of Bata’s wholesales were in the northern areas, when earth
quake came it suddenly fall down. Bata should wind up wholesale
from northern areas and should shift it towards the cities of
Rawalpindi, Lahore and Hyderabad because more footwear units
are located in these cities.

ESTIMATED REVENUE FROM EXISTING PRODUCTS IN

EXISTING MARKETS (MARKET PENETRATION)

Market size (Value):

Current size: $ 16 million

Year 1 Year 2 Year 3

Market projections
$ 18000000 $21000000 $23000
000

Current market
share:

Projected market share Year 1 Year 2 Year 3

(Via new strategies)

65% 69% 73%
Estimated value of
existing Year
Year 1 Year 2 3
Products in existing
markets: 150100.7$ 153102.7$ 156164.75$
(Market projection x

Market share)

Page 75
ESTIMATED POTENTIAL REVENUE FROM EXISTING
PRODUCTS IN NEW MARKETS (MARKET DEVELOPMENT)*

Year 1 Year 2 Year 3

2311550$ 2357782$ 23194937$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS

IN EXISTING MARKETS (NEW PRODUCT DEVELOPMENT)*

Year 1 Year 2 Year 3

480322$ 489929$ 499727$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS

IN NEW MARKET SEGMENTS (RELATED DIVERSIFICATION) *

Year 1 Year 2 Year 3

60040$ 61241$ 62466$

Page 76
Conclusion

Haleeb Foods is well establish company which is competing with

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

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

Page 77
businesses, innovation in branding and aggressive marketing strategy can
bring long term profitability.

As a whole HFL is a good organization to work in but there are certain departments that
need improvements. It is surviving in the FMCG’s sector with some strengths and
weaknesses. I am of the view that if the management of HFL wants to show the same
results in the future that it should have to take some decisions before time, because in the
21st century only those organizations can survive who are utilizing all their resources
efficiently and effectively.

Page 78
Recommendations:

Haleeb Foods Limited should also allocate a healthy budget for the
advertising of its products.

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

the company.

The co-operation among the different departments of HFL should also

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

The activities like customer satisfaction day should be performed on

regular basis so the company should know about the feedback of the
customers regarding the products and image of the company.

The shopkeeper complains that HFL don’t provide replacement to the

expired products so they should provide proper replacements to the
shopkeepers to enhance the image of the company.

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

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

 They should try to maintain high quality which they are already producing.
Page 79
 They should use Automated Storage and Retrieval System to minimize the storage
cost.

 They should implement on Computer Integrated Manufacturing to be the ware

housing and shipping department computed aided.

 They should use vision system in inspection.

 Accommodation should be provided to the employees.

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