1.

INTRODUCTION:

i. HISTORICAL BACKGROUND

Haleeb Foods Pvt. Ltd. started its business in 1984 with the name Chaudhry Dairies Ltd.
The plant spreads over 37 acres of land which is situated at 62 kilometers from Lahore
District Court, with a capacity to process 80,000 liters of milk per day with a labor force
of 150 workers. The production process started in 1985 with UHT (Ultra High Treatment)
liquid milk such as an initial product which became very popular in no time. Haleeb’s
administrators claim that their plant adopted the latest technology for milk processing and
thus it had an edge over other around twenty plants in competition including Milkpak as
all other plants were based on obsolete European technology. The idea behind UHT
investment was to provide consumers with the best quality of packaged dairy and food
products that no other company can produce. About four years later, the company decided
to enter a joint venture with Friesl and Frisco Domo (FFD) of Netherlands and continued
the activity from November 1989 to December 1991. This joint venture did not last very
long because of the change in global strategy of FFD and was amicably dissolved. Haleeb
then went on its own till December 1998 till it signed a contract with Candia that is a
market leader in France. Under this agreement, the company launched Candia value
added liquid milk products all over the nation. The advantage of this agreement that
Haleeb took is that Haleeb now has access to the latest technique of production, technical
know-how, etc. The major aim was the quality production and that is why Haleeb
discarded some of its products with the likelihood of loss in quality. This made the
company gain many successes on different frontiers and, now it competes very well with
all other multinationals and has an edge over all national companies active in the dairy
industry in Pakistan. The important happenings are described below.

1984 Founded as Chaudhry Dairies Limited

1
1987 Started sale of packaged milk under “Haleeb” brand

1989 Established equity partnership with CC Friesland, Netherlands

1991 Discontinued the partnership with Friesland Frico Domo

1998 Entered in franchise agreement with Cedilac, France

2004 Changed corporate name to “Haleeb Foods”

2005 New production facility fully operational at RYK

ii. SITUATION ANALYSIS

These days, Haleeb Foods Pvt. Ltd. (Formerly CDL Foods Ltd.) is one of those few
leading national companies. It collects about six to eight hundred thousands liters of fresh
milk everyday from its large number of collection points Located all over Punjab, chills it
at the site and then processes it to manufacture different dairy products. The branded
products that Haleeb manufactures include standardized milks namely Haleeb, Candia,
Dairy Queen, etc. that are ultra heated. It also produces powdered milk namely N’rish.
Other than that it produces butter, cream, desi ghee which is animal fat obtained after
heating and removal of proteins from milk and lassi drink that is milk left after removal
of butter from yogurt. Apart from milk products, Haleeb also produces different kinds of
beverages such as fresh fruit juices under the brand name ‘Tropico’, in different flavors
such as ‘Mango’, ‘Orange’, ‘Apple’ and ‘Mango and Orange’. The company is not only
supplying its products nationwide but also currently exporting its products to
Afghanistan, Bangladesh, Europe, America, etc. It exports desi ghee to South Africa,
cream, milk and fruit juices to Tajikistan, fruit juices to UK, powdered milk and ghee to
Qatar. It is planning to export its products to Canada, Dubai, Uzbekistan etc.

2
The Executives of Haleeb Foods claim that the growth rate of Haleeb Foods Pvt. Ltd. is
the highest as compared to any other company in Pakistan (Khan, 2004). Its total sales
grew immensely in last few years. It has given jobs to around 2200 employees which
includes skilled, unskilled and temporaries. Its plant in Lahore runs on 3- shift basis daily
in which every shift lasts for 8 hours that means that the plant works 24 hours a day. As
the company is making products on large scale, it produces a lot of waste as well which is
being disposed off in an efficient way in order to keep the environment healthy and clean
as a respect for the National Environment Protection Laws.

The company is earning high profits and as a result it is sponsoring the welfare of
children as it runs about 600 schools in different parts of the country. Haleeb is also one
of the major tax payers of the country and it claims to be very honest in its tax
assessments and paying of tax amount set by the government. The major secret of success
of the company as HBL claims is the practice of honesty in every field and on all
frontiers that are expanding day by day. The company investors and management teams
have unanimously decided since the start that there will be no compromise on quality of
the products. That is why it subjects milk to strict tests on the basis of which there is a lot
of reduction in supply due to rejection which is approximately more then 100,000 liters
per day; a big loss daily. The company bears this loss daily instead of selling it in the
market because they do not want to compromise on quality.

The Company Administration has taken keen interest in refining the environment of its
establishments and it developed all of its sites at the highest aesthetic standards. It has a
very attractive office at 135-Ferozepur Road, Lahore and a beautiful food processing
plant with amazing landscapes 62 kilometers on Multan Road. The plant is not only a
production unit but also has a big warehouse, a mosque, a fair price shop and a guest
house. It has now commissioned a similar type of a plant with a huge capacity in Rahim-
Yar-Khan to serve areas down to Karachi.

3
iii. THE ORGANIZATIONAL SET UP OF HALEEB

The organizational setup was very interesting in which we observed that they had a
formal structure being followed for the information to go beyond. As at Haleeb Foods
they are using Umbrella branding strategy so they had managers brand wise. The senior
management for Haleeb UHT Milk included Mr. Iqbal Jutt as the Senior Brand Manager,
Mr. Hassan Wajahat Assistant Brand Manager, and Mr. Ahmer Shahzad. Their major
duties are the planning and image building efforts that they can do for their brand. The
training of the personnel is done in house at Haleeb institute of Leadership which is done
by the HR people and the people from related marketing departments. The functional
efficiency is monitored through the sales reports and different survey sessions that are
conducted by the company when they feel need of. The Interface efficiency was not that
good which in an interview with their employee we came to know that even the co-
ordination between Sales and Marketing team turned out to be a night mare at times.

HFL

QAD R&D

PRODUCTION MARKETING

MPD IMPORT & EXPORT

CUSTOMER COMPLAINTS FINANCE / ACCOUNTING

HUMAN RESOURCE ADMINISTRATION

TECHNICAL PERSONNEL DEPARTMENT

SUPPLY CHAIN SALES

4
 ORGANIZATIONAL CHART

The above diagram is of the organizational chart for Haleeb Foods Pvt. Ltd. Thee
structure is a flat and a functional structure.

Advantages of a Flat Structure:

• More greater communication between management and workers

• Better team spirit
• Less bureaucracy and easier decision making
• Fewer levels of management which includes benefits such as lower cost as
managers are generally paid more than workers.

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iv. LOCATION OF OFFICE

REGISTERED AND HEAD OFFICE

135- Ferozepur Road, Lahore- 54600

Phone- (042) 111 135 135

Fax- (042) 7589359 & 7590376

PLANT

62- Km, Lahore- Multan Road, Bhai Pheru

Phone- (042) 7511636

(04943) 510874 – 5

FAX- (04943) 510877

E-mail: info@haleebfoods.com
REGIONAL SALES OFFICES

Regional Office Peshawar

6-C Saddar Road

Near Jan’s Bakers

Peshawar Cantt.

Phone: (091) 279238

Fax: (091) 279563

6
Regional Office Rawalpindi

Flat No. 15/15, Aftab Plaza

Saidpur Road

Rawalpindi.

Phone: (051) 4426502

Fax: (051) 4426503

Regional Office Multan

20-A, Gulgasht Colony

Multan.

Phone: (061) 221266

Fax: (061) 530927

Regional Office Sukkur

A-39, Sindhi Society

Near Airport Road

Sukkur.

Phone: (071) 31061

Fax: (071) 30679

Regional Office Karachi

Wing Song Palace

Suite No. 203, 2nd Floor

Plot No. 16-17, Block 7 & 8, KCHS

Shahrah-e-Faisal, Karachi.

Phone & Fax: (021) 4315778

7
 Regional Office Lahore

135- Ferozepur Road

Lahore.

Phone: (042) 111 135 135

Fax: (042) 7590376

v. NATURE OF BUSINESS

The food industry plays a vital role in supplying of food necessities for the survival of
humanity all over the globe. That is basis of installation of plants and factories that
process and manufacture dairy raw materials such as milk for manufacturing a large
number of dairy products that are very popular and are in business since long. This
manufacturing process is very common in the whole world even in the developing
countries.

Pakistan, since its creation in 1947, was in dire need of different forms of products related
to the dairy farming and food industry. This demand paved the way for different
multinational and local companies to make investments in food and dairy sector. Nestle is
one of the important examples that set up a business related to food industry. Some local
companies such as Nurpur, etc, also joined the race to meet this rising demand. Later,
many companies came into this business because there was an increased demand in this
sector. Hence, companies with different product types were in competition. Thus, they
were in business and they diversified the spectrum of their products by inclusion of
different types of food brands. The examples are different fruit juices, cheese and butter
etc.

Haleeb joined the caravan little late in early 1980’s by the name Chaudhary Dairies Ltd.
(CDL) and developed at a very high growth rate. Its major flagship brand was the packed
‘Haleeb’ Milk. This brand had phenomenal sales and was very popular among the
consumers and thus, it forced the management to rename their company as Haleeb Foods

8
Ltd after 2000. The company continued processing of milk to produce a large number of
dairy products:

• Haleeb Milk.
• Candia
• Dairy Queen
• N’rish
• Butter
• Cream
• Desi Ghee
• Lassi drink

Like Nestle Pakistan Ltd, it supplemented its dairy range with the fruit products such as
different types of fruit juices, and also combined different fruit flavors with the dairy
products and came up with a number of significant products which come in the category
of flavored dairy products. The company continued to do a good job with an annual
growth rate around and above 25% per annum since last many years and thus is now
capable of competing with any other national or multinational company in Pakistan.

Building an excellent reputation over the years, Haleeb Foods continues to be at the
forefront of product and packaging innovation. By the grace of God, it has achieved
market leadership in several food categories with a very strong portfolio, consisting of
leading national and international brands – Haleeb, Candia, Dairy Queen, Tea Max,
Skimz, Tropico and Good Day. Apart from its extensive nationwide distribution
networks, Haleeb Foods is also serving several export markets including South Korea,
Bangladesh, Afghanistan and the Central Asian states.

Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s
novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA).
Haleeb Foods has also introduced a number of unique products previously unknown to
the Pakistani market, like Haleeb Labban, delicious traditional lassi (buttermilk)

9
 prepared with pure thick milk and yogurt, Candia Tea Max, cardamom flavored tea
whitener, Candia milk, packed in distinctive food grade plastic bottle, and Haleeb Good
Day, 100% pure and natural fruit juice, free of added sugar, artificial flavors and
preservatives.

All this and more makes Haleeb Foods Pakistan’s number 1 and fastest growing
packaged Food Company. As of fiscal 2006, its annual turnover is Rs. 9 Billion.

vi. TYPE OF OWNERSHIP

Haleeb is a Private limited company. The private company, as the object of these rules,
has the internal characteristics of a partnership and the external characteristics of a
corporate body. In addition, shareholders are financially and personally deeply involved
in the private company and have no easy exit. These characteristics should be
determinative for a private company statute.

vii. NUMBER OF EMPLOYEES

Haleeb have more than 3000 employees.

viii. KEY PLAYERS

BOARD OF DIRECTORS

Ilyas M. Chaudry

Suleman Daud

Mian Mohammad Amjad

Saqib Ali

10
Mohammad Imran Amjad

Mrs. Nasrin Ilyas

Sh.Mohamed Rasheed

Mohamed Ishaque Khan

COMPANY SECRETARY

Salman Z. Siddiqi

AUDITORS

Hameed Chaudri & Company

Chartered Accountants

LEGAL ADVISORS

Mian Iqbal Hussain Kalanuri

2. MISSION/ VISION/GOALS/ OBJECTIVES

MISSION STATEMENT

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

11
 VISION STATEMENT

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

COMPANY OBJECTIVES

“To built maximum market share by providing convenience to the consumers in the form
of products and make sure that the product is available easily and everywhere”

VALUES

Enterprise, Empowerment, Accountability, Trust, Teamwork

3. STRATEGIC EXTERNAL AUDIT

i. STEEPLE Analysis

No organization exists in a vacuum; the environment within which the firm has to operate
will affect the way that strategy is both planned and carried out and changes in the
environment is also the most likely reason for making changes in the strategy. Changes in
the environment are also the most likely cause of failure of strategic plans. The most
carefully calculated strategy would be able to drive the market in the favor of the
organization and will maneuver the external environment in the best possible way. Haleeb
Foods like all the organizations they also have to face such kind of environment which is
very dynamic. Being in the market as a challenger they have to face all the external
factors and have to cope up with them accordingly

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S - Social Factors

Haleeb Milk has helped to bring about a change in life style of the Pakistani People by
introducing UHT Milk, as the literacy rate is improving and it is resulting in a better
awareness of the Haleeb UHT treated milk and is helping them improve their sales and
Milk with its basic benefits has helped improve the image and more usage has been seen
in the past years. Special awareness Campaigns can also be launched and can help
portray a better image of the product in front of the customers. The attitudes of the people
are also changing with the passage of time so as a result the usage of open gawala milk is
changing and people are opting out the usage of standardized packed milk

T - Technological Factor
The type of the technology available within the industry states the competitive
environment because creative use of new technology is what often gives firm there
competitive advantage. This environment does not change that much quickly but the
changes that come are strong enough that can change the way the industry is currently
running. Haleeb production process uses UHT (Ultra High Treatment) technology.
Haleeb’s administrators claim that their plant adopted the latest technology for milk
processing and thus it had an edge over other around twenty plants in competition
including Milkpak as all other plants were based on obsolete European technology. The
idea behind UHT investment was to provide consumers with the best quality of packaged
dairy and food products that no other company can produce.

E - Economical Factor

Haleeb Foods is strongly affected by both the Economic and the Demographic
environment around and have to keep on taking different steps to respond accordingly.
There is no sales tax on the milk. Hence it is a real plus point. Material supply and
shortages are faced by the company for both Packaging and for the product it, as milk’s

13
production is seasonal and keeps fluctuating and adequate steps are required to be taken
in order to keep it working smoothly. Haleeb also don’t charge interest on its products
which also makes a huge difference economically.

E - Environmental Factor

As, the environment always effect the way strategies are being carried out and
implemented. Haleeb Foods like all the organizations they also have to face such kind of
environment which is very dynamic. Being in the market as a challenger they have to
face all the external factors and have to cope up with them accordingly. Haleeb have the
strategies to positively engage the staff in work and boost up their moral. Haleeb have a
friendly environmental culture within the organization to make their employees
comfortable and to deal with the external problems. There are few seasons in which the
availability of milk reduces that effect the production of milk and left Haleeb with
fluctuated sales.

P - Political Factor

Haleeb foods also abide by the rules formed by the Government and set their strategies
that are according to the laws and legislations of the Government they are working under.
Haleeb had the monopolistic control over the market when they started selling the Haleeb
Milk in the form of Tetra Pack (brick pack), that was for the first time that milk came in
that form soon followed by the Nestlé’s Milk Pak which as a multinational rocked the
UHT Milk industry of Pakistan. They are not actually bound under any sort of trade
agreements. As far as the employment laws are concerned Haleeb foods abides to laws
set by the government for trade policies, government policies and completes its
responsibilities in a better manner.

14
L - Legal Factor

Haleeb foods always stand by the rules and legal conditions imposed by the Government
and set their strategies that are according to the employment laws and legislations of the
Government they are working under. Haleeb always keep its department updated about
what is happening in the sector or milk industry, and that will help them to make their
strategies accordingly. Haleeb have the legal laws like, Minimum wage, working time,
Food stuffs, Haleeb don’t believe in Under 18 working, Occupational/ industrial Training,
Environmental regulations, Consumer protection Industry-specific regulations etc.

E - Ethical Factor

Haleeb is well renowned company operating in the milk industry since long. And the
reason for this is importantly their ethical values. They don’t sale on credit or on interest
because they consider it unethical and not according to the law of our religion.

ii. PORTERS FIVE FORCES MODEL

15
 1. THREAT OF NEW ENTRANTS:

The average entrepreneur can't come along and start a large food company. The threat of
new entrants lies within the food industry itself. Some companies have carved out niche
areas in which they underwrite dairy supply. These food companies are fearful of being
squeezed out by the big players. Another threat for many food companies is other food
services companies entering the market.

• Capital requirements

Competing in a new industry requires resources to invest. Production of packed products

requires huge investment of financial, human, technical, and marketing resources. At the
moment Haleeb have some threats like from new entrant’s olpers milk product of Angro
foods.

• Economy of scale

16
Economy of scale determines entry because they force potential competitors either to
enter on a large scale bases (a costly and perhaps risky move) or to accept a cost
disadvantage. Moreover, new entrants in the pasteurized milk business may encounter
scale related barriers not just in the production, but in the advertising marketing,
distribution, financing, and raw milk purchasing as well, haleeb achieved its breakeven in
1993.

2. BARGAINING POWER OF SUPPLIERS:

The suppliers of food might not pose a big threat, because of the reasons;

• 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 company.

• 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 suppliers don’t have much option to sell
milk to others.

3. BARGAINING POWER OF BUYERS:

17
The individual doesn't pose much of a threat to the food industry. Large clients have a lot
more bargaining power with food companies. Large corporate clients like airlines and
retailers pay millions of dollars a year. There are large numbers of distributors, who are
buying and distributing the product, so their bargaining power is low and company have
leverage to dictate implement its terms and conditions to distributors.

• Backward integration

Another reason of low bargaining power is that no buyer/distributor has the resources to
start involve in backward integration.

4. AVAILABILITY OF SUBSTITUTES:

This one is pretty straight forward, for there are plenty of substitutes in the food industry.
Most large food companies offer similar suites of services. Companies focusing on niche
areas usually have a competitive advantage, but this advantage depends entirely on the
size of the niche and on whether there are any barriers preventing other firms from
entering.

5. COMPETITIVE RIVALRY:

The food industry is becoming highly competitive. The difference between one Food
Company and another is usually not that great. As a result, food industry has become
more like a commodity - an area in which the food company with the low cost structure,
greater efficiency and better customer service will beat out competitors. Food companies
also use higher investment returns and a variety of food investment products to try to lure
in customers. In the long run, we're likely to see more consolidation in the food industry.

18
Larger companies prefer to take over or merge with other companies rather than spend
the money to market and advertise to people.

Not only local but attempts by cross border competitors or companies to gain stronger
foot hold in each others domestic market boosts the intensity of rivalry, especially when
the foreign rivals have lower cost or very attractive products. In case of haleeb so far
nestle is the only diverse rival and another player that has just joined the UHT Milk
sector is Olpers, no doubt the competition between nestle and haleeb is quite intense both
are engaged in consistent homework just to break and attract the customer towards each
other but Engro is adding to the competition between the sector.

iii. BCG Matrix

BOSTON CONSULTING GOUP MATRIX

STARS QUESTION MARK

H
H
I
G
G
H
R
O Dairy Desserts
W
T
H
H
R
R L
L CASH COW DOG
A O
O
T W
W
E
Bev erages Chilled Dairy

HIGH
HIGH LOW
LOW

RELATIVE MARKET SHARE

19
The above figure shows the BCG matrix. It is the simplest way to show a company’s
portfolio of investment. The different product lines of the company are plotted on the
matrix according to the growth rate of the industry and its relative market share.

As per the market share HFL is the second largest company operating in Pakistan in the
dairy food sector. It lies in the maturity stage of the product lifecycle. It has the largest
production of not only dairy products but also fruits and agricultural products in the
country. It has a well equipped production plant delivering quality products to its
consumers. As far as the BCG matrix is concerned Haleeb is a Star as it has a high market
share and the Industry growth is high as there is a lot of opportunity in this sector and a
lot of companies are coming in the dairy industry.

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iv. SWOT Analysis

Strengths

1) Haleeb has a strong brand image, as it is in the market from such a long period of
time (1986).
2) A company with growing sales and profits over the years
3) Major share holder in the food industry of Pakistan
4) A vast distribution network for Urban as well as Rural areas that make sure that
the product is easily available everywhere.
5) The nature of the products is good, i.e. Quality products, standardized and the
thickest milk in the market.
6) Haleeb has a high capacity to produce 80,000 liters of milk per day.
7) Haleeb Foods has an innovative and a constantly growing product line.
8) Haleeb Foods is a Customer Oriented and social responsible Company.
9) Haleeb have Qualified Work force.
10) Their focus on Research and Development in packaging solutions and periodic
research to judge market trend gives them an edge.
11) First dairy company in Pakistan to get ISO 9002 certification
12) Haleeb have a business without interest.
13) Haleeb is not selling its products only in Pakistan but they are exporting their
products to other countries like America, East Asia, Afghanistan, Bangladesh and
Europe.

Weaknesses:

1) Haleeb Foods is comparatively a local company in comparison to its rivals like

Nestle. So, Competing with such giants is a bit difficult.
2) Haleeb have a centralized decision making system.

21
3) Low or almost no sales on credit, where as all the other companies in this sector
do this.
4) As UHT treated milk is a highly value added product so the costs also increase
accordingly, so the overall costs are high. As a result the overall price also
increases.
5) Uncertain economic and political conditions of the country effects them as the
product is sensitive.
6) The demand of the market is less then the actual capacity of the production plant
which is also a reason for high prices of the end product.
7) Haleeb foods has comparatively striker terms and conditions.
8) Haleeb was out of the promotional scene from 5-6 months when Olpers was
launched.

Opportunities:
1) Pakistan is the fifth largest milk producing country of the world, where the raw
material is easily available and in abundance so they can increase their production
and sales also by promoting their product in a better way.
2) The general public is currently using the open gawala milk and only 9% is using
the UHT milk so still there is a lot of market available for the company to
capitalize.
3) Haleeb can go for related diversification by providing flavored yogurt, ice cream
and milk products like kheer and firni.
4) Haleeb still have an opportunity to explore more countries for export their
products.
5) Haleeb bottle another opportunity for them to capitalize.
6) Credit policy can be adopted to increase sales of the products.
7) Haleeb Foods can go for joint venture with other companies to attract the market
share.
8) A trusted name in products for all age consumers can also go for baby cereals as a
number of people are still brand loyal to them.

22
Threats:

1) Competition with Nestle, Engro Foods and the new entrants.

2) Effect of the changing in seasons affects the level of production and
consumptions.
3) Haleeb is currently facing are increase in Sales Tax.
4) Dependency on contractors for the supply of milk.
5) The economic condition keeps on changing rapidly, which result in rupee
devaluation and as the raw materials for packaging are imported which can result
in the end product price fluctuations.
6) Price sensitive people.
7) Milkman providing open milk and even delivering it to the door step.
8) The target market is still small in numbers where as a number of companies have
recently joined the dairy sector in the past 3 years.

SWOT Analysis of Dairy Industry

Strength
• Endowed with the very good breed of buffalos and cows
• Highest per capita consumption of milk in Asia
• Regular culling of less productive/unproductive animals
• A high ratio of agricultural land to agricultural ratio
• An emergence of commercial dairy farms on a large scale

Weaknesses
• Small and scattered animal holding
• Prevalence of traditional raw milk marketing system

23
 • Poor quality of milk; lack of remunerative producer price for milk
• Milk processing predominantly dependant on obsolete UHT technology
• Mushrooming growth of cattle colonies in suburban areas; High cost of milk
• Production; a long chain of middle men
• Inadequate infrastructure and institutional facilities and support
• Low utilization of installed capacity of dairy plants
• Poor quality of animal health care and breeding services; lack of professional
management

Opportunities

• Huge unsatisfied demand of milk and milk products.

• Substantial scope for increasing milk production through improvement in the
marketing system by ensuring a year round remunerative price to milk producers
• Increase consumer awareness of healthy eating

Threats
• Unregulated imports of dairy products at cheap prices
• Inadequate public and private investment in modernization of the sector
• Vested interests in perpetuating the dependence on imports of dairy commodities

24
SWOT Matrix
Strengths
• Haleeb has a strong brand image,
as it is in the market from such a
long period of time (1986).
• A company with growing sales
and profits over the years
• Major share holder in the food
industry of Pakistan like Nestle
etc.
• A vast distribution network for
Urban as well as Rural areas that
make sure that the product is
SUPER SWOT easily available everywhere.
• The nature of the products is
good, i.e. Quality products,
standardized and the thickest
milk in the market.
• Haleeb has a high capacity to
produce 80,000 liters of milk per
day.
• Haleeb Foods has an innovative
and a constantly growing product
line.
• Haleeb Foods is a Customer
Oriented and social responsible
Company.
• Haleeb have Qualified Work
force.
• Their focus on Research and
Development in packaging
solutions and periodic research to
judge market trend gives them an
edge.
• First dairy company in Pakistan
to get ISO 9002 certification
• Haleeb have a business without
interest.
• Haleeb is not selling its products
only in Pakistan but they are
exporting their products to other
countries like America, East Asia,
Afghanistan, Bangladesh and
Europe.
Weaknesses
• Haleeb Foods is comparatively
a local company in comparison
to its rivals like Nestle. So,
Competing with such giants is a
bit difficult.
• Haleeb have a centralized
decision making system.
• Low or almost no sales on
credit, where as all the other
companies in this sector do this.
• As UHT treated milk is a highly
value added product so the costs
also increase accordingly, so the
overall costs are high. As a result
the overall price also increases.
• The income level of the people
is not that high or the favorable
income level group is still small.
• Uncertain economic and
political conditions of the
country effects them as the
product is sensitive.
• The demand of the market is less
then the actual capacity of the
production plant which is also a
reason for high prices of the end
product.
• Haleeb foods has comparatively
striker terms and conditions.
• Haleeb was out of the
promotional scene from 5-6
months when Olpers was
launched.
25
Opportunities SO
Huge unsatisfied demand of milk and Increase production of quality milk to
milk products. cater the unsatisfied demand.
Substantial scope for increasing milk Through effective marketing
production through improvement in strategies increase the awareness of
the marketing system by ensuring a the benefits of UHT milk
year round remunerative price to milk
producers They should go in the product line of
powdered milk.
Increase consumer awareness of
healthy eating They should start the range of
powdered milk for infants and
children below 12.
They should increase their exports.
They should cater the wide range of
unsatisfied demand by improving
their distribution networks
Threats ST
Unregulated imports of dairy Invest more on the dairy product line
products at cheap prices. as there is still a large chunk of the
market which require modernization
Inadequate public and private
investment in modernization of the Introduce new technology for quality
sector. assurance and better productivity.
Vested interests in perpetuating the Increase the Plant Capacity
dependence on imports of dairy
commodities
WO
As per the increase demand of the
milk they should start doing sales on
credit.
They should make a strong
distribution system to cater to avail
the full benefit of the growing
market.
They should adopt affective
marketing strategies for the
promotion of their product.
WT
The co-ordination between different
departments of HFL should be
improved it will lessen the
bureaucratic cost and increase the
efficiency of the company.
Haleeb has to change its perception
of milk for tea only, as it is not taken
as a milk for general consumption, so
it looses a large chunk of consumers
in the packaged milk market
26
 INTERNAL FACTOR ANALYSIS
Key Strategic Factors Weight Rating Weighted Score
STRENGTHS
Brand Image 0.08 4 0.32
Growing Sales 0.03 3 0.09
Market Share 0.05 3 0.15
Distribution Channel 0.08 4 0.32
Product Quality 0.07 3 0.21
Capacity 0.08 4 0.32
Innovation 0.04 3 0.12
Customer Oriented 0.02 3 0.06
Qualified Work force 0.01 3 0.03
R&D 0.05 4 0.2
Business without Interest 0.02 3 0.06
Exporting 0.06 4 0.24
WEAKNESSES
Local Company 0.05 1 0.05
Centralized Decisions 0.09 2 0.18
No Sales on Credit 0.06 2 0.12
High Price 0.05 2 0.1
Uncertain Economic &
0.03 1 0.03
Political Conditions
Market Demand 0.05 2 0.1
Striker Terms And
0.03 1 0.03
Conditions
Promotion 0.05 2 0.1
Total 1 2.83

27
 EXTERNAL FACTOR ANALYSIS
Key Strategic Factors Weight Rating Weighted Score
OPPORTUNITIES
Raw Material
0.1 4 0.4
Availability
Market Capitalization 0.08 3 0.24
Diversification 0.07 2 0.14
Exports 0.07 3 0.21
Haleeb Bottle 0.04 1 0.04
Credit Policy 0.06 2 0.12
Joint Ventures 0.06 3 0.18
THREATS
New Entrants 0.08 3 0.24
Changing Season 0.05 2 0.1
Sales Tax 0.06 3 0.18
Suppliers 0.07 3 0.21
Economic Conditions 0.05 2 0.1
Price Sensitive People 0.06 2 0.12
Gawala Milk 0.1 4 0.4
Small Target Market 0.05 2 0.1
Total 1 2.78

v. Competitive Profile Matrix (CPM)

28
 HALEEB NESTLE OLPERS
Critical Success Factors Weight Rating Score Rating Score Rating Score

1 Research & Development 0.08 4 0.32 3 0.24 3 0.24

2 Advertisement 0.09 3 0.27 4 0.36 3 0.24

3 Financial Position 0.09 3 0.27 3 0.27 3 0.27

4 Market Share 0.07 3 0.21 4 0.28 2 0.14

5 Product Quality 0.08 3 0.24 3 0.24 3 0.24

6 Price Competitiveness 0.11 2 0.22 3 0.33 3 0.33

7 Management 0.10 3 0.30 4 0.40 3 0.30

8 Global Expansion 0.08 3 0.24 4 0.32 3 0.24

9 Customer service 0.06 2 0.12 3 0.18 3 0.18

10 Sales And Distribution

Network 0.09 3 0.27 4 0.36 3 0.27

11 Production Capacity 0.07 4 0.28 3 0.21 2 0.14

12 Alliances 0.08 3 0.24 4 0.32 3 0.24
Total
1.0 2.98 3.51 2.76

REASONS

The IFE matrix for HFL is given above. Note that the strength for the company is
Research and Development, Pakistan based and having a highest production capacity so
got 4 rating. The major weaknesses are Price competitiveness customer service and
planning for the future state of the HFL. The total weighted score of 2.98 indicates this
large milk Production Company is above average in its overall internal strength. But it’s

29
very close to average limit as well. So it really needs to improve its weaknesses and build
its strength.

4. CORE COMPETENCIES & KEY SUCCESS FACTORS:

There are several core competencies of Haleeb, given below;

• Haleeb foods Pvt. Ltd has been able to build a good brand name in a number of
years. There are several consumers who are loyal to the brand and do not shift to
other brands. Building a good brand name is not easy. It takes years to build a
brand image by providing the best quality to its consumers which Haleeb Foods
have done. They have consistently delivered which provides a competitive
advantage to the company of having a good name in the market.

• Haleeb Foods Pvt. Ltd. Is only the recognizable food company which is doing
business without interest, which means that they do not take loan or take
advantage of the interest income which they can easily do? If they want loan and
they cannot find anyway out they go for Islamic Financing like mudarba and
musharka. It is their strength as majority of the people in Pakistan are Muslims
and Muslims are advised to remain away from interest income.

• Haleeb has one of the most modern plants which has the latest technology and has
a high production capacity. They produce 80,000 liters of milk in a day which is
not a small amount of milk. They have an advantage of higher production as
people are demanding more and more packed milk so they can meet the
increasing demand easily.

• Haleeb is not selling its products only in Pakistan but they are exporting their
products to other countries like America, East Asia, Afghanistan, Bangladesh and
Europe. Exporting has opened up new markets for them and it is a source of

30
 revenue generation for such a company. It is difficult to grow tremendously only
in Pakistan because of the number of players in the industry but exporting does
not limits their sales spectrum but also give them a potential to enter many other
emerging markets.

• Haleeb has one of the most extensive distribution networks across the nation. It
has one of the best distributions if we compare it with other major players like
nestle and all because Haleeb has over 600 distributors across Pakistan which
enables them to deliver their products into far of small towns as well as villages. It
is their major strength which is driving their revenues very quickly.

• Different ISO certifications about the quality control and environmental

management that Haleeb holds. These certificates prove that Haleeb has been
taking keen interest in keeping its environment clean and healthy and in
producing quality products.

KEY SUCCESS FACTORS:

• Research & Development
• Financial Position
• Market Share
• Product Quality
• Price Competitiveness
• Management
• Global Expansion
• Customer service
• Network Sales And Distribution
• Production Capacity
• Alliances

31
5. strategies under taken at :

Strategies undertaken at:

1. Corporate level
2. Business unit level
3. Functional or departmental level

Corporate Level:

The corporate level is more concerned with the big picture than other levels of
management. It decides the overall strategy of the organization, works closely with the
various stakeholders, relates to banks and stock, raises capital, makes major acquisitions,
divestitures, joint ventures, licenses, etc, deals with the media, provides internal auditors
and deals with the external auditors, provides training programs and makes major human
resource decisions such as the compensation of senior executives.

At Haleeb Foods they are using Umbrella branding strategy so they had managers brand
wise. The senior management for Haleeb UHT Milk included Mr. Iqbal Jutt as the Senior
Brand Manager, Mr. Hassan Wajahat Assistant Brand Manager, and Mr. Ahmer Shahzad.
Their major duties are the planning and image building efforts that they can do for their
brand. The training of the personnel is done in house at Haleeb institute of Leadership
which is done by the HR people and the people from related departments.

Business Unit Level:

A strategic business unit may be any profit center that can be planned independently from
the other business units of one’s corporation. At the business unit level, the strategic

32
issues are about both practical coordination of operating units and about developing and
sustaining a competitive advantage for the products and services that are produced.

It is the entity that concentrates on a specific business. They do not need to develop plans
for areas outside of their own specific missions. Typically, the business level is concerned
with the total of applicable individual functions that make the business operate. It is at
this level that identifying the right individual products and the right market niches is most
critical.

In Haleeb there are countless departments and SBU’s and they have their own hierarchy.
Like business unit for milk and bottle water is separate, ice-cream, yogurts have also
separate SBU’s. So they gave idea for developing a product, do segmentation and define
the target market.

Functional Level:

As we are living in the dynamic world and in this rapidly changing environment,
customer taste is also, so right decision at the right time is always needed in order to
perform effectively and keep organization top of their desire. Output of one department
will be the input of other, so every department should timely in order to keep the
costumer long with their company offering otherwise the costumer will switch or move to
competitor products.
The functional efficiency is monitored through the sales reports and different survey
sessions that are conducted by the company when they feel need of.

• Quality Assurance Department

Quality assurance department play a very important role in any production concern
organization because organization are depended on them, no other department can do
anything if the product is not made according to customer demand or the standards which
the organization maintain.

33
 • Research And Development

Research and development also play a very major role in an organization. This
department is directed by the marketing department which gives directions for
conducting tests if any product is having some problem pointed out by the customers.

• Production Department

Production is the functional area responsible for tuning inputs into outputs through a
series of production processes, and the production manager is responsible for making
sure that raw material are provided and made into finished goods effectively.

• Marketing Department

Marketing department of any production concern works like the heart of human body.
The marketing department is the unit of organization, traditionally charged with carrying
out specific tasks that are deemed to be “marketing” (such as advertising, market
research).

6. MANAGEMENT STRATEGIES

Marketing Strategy

Haleeb has been working since 1984 and in the number of years haleeb has shifted its
strategy a number of times. Haleeb’s best days were when haleeb was focusing on their

34
premier product which was Haleeb milk. They used to keep a focus on this product and
very well marketing research was done and a strategy was formulated which worked out
very well for Haleeb. This strategy was to focus on their premier brand while introduction
of new products was also being done. Haleeb gained a market share of 46% by using this
strategy.

Current Strategy:

According to porter’s generic strategy Haleeb is following product development and

related diversification strategy. The companies following differentiation strategy try to
achieve class leadership by providing unique characteristics to the product/service. In
other words the aim is to create a highly differentiated product and marketing programme
like design or brand image, customer service or dealer network. If a firm has strengths in
R&D, design, Quality control and marketing, this could be one of the strategic approach
routes.

Haleeb is doing the same it is continuously doing product development. Just recently
haleeb launched a new product line which is of deserts and haleeb started of their
business with dairy but then later on it introduced beverages as well so Haleeb is
following the differentiating strategy.

i. Human Resource Department

The ultimate success of a company lies in HR. to cater the issue of HR; HFL has a very
extensive HR department which dictated HR policies, having a well documented
pertinent material.

Human Resource Management at Haleeb strives to achieve organizational goals and goals
of the employees through effective personnel programs, policies and procedures.

This department is mainly responsible for:

35
Recruitment and Selection of Employees

• Available position is advertised in newspaper

• Department Coordinator receives C.V. and other documentation.
• Short listed candidates interviewed by department manager.
• Final candidates interviewed by a panel of:
 HR Director
 Two Relevant Managers

Formulating Training and Development Programs

• Most training is on the job training

• Every department has its own training program.
• Workshops
• Step by step job instruction training.

Job Description

• The nature of their work and their working hours.

• Salaries

Conducting Performance Appraisal

They have claimed that in this Performa, the target achieving tendency of the employee
and his/her behavioral traits such as follows are measured:

36
 o Communication skills o Leadership qualities
o Work organization o Development orientation

o Result orientation o Strategic vision

o Team player o Business knowledge
o Self-confidence o Critical reasoning

Besides that there are some grey areas which need to be under consideration like there is
a lack of co-ordination with other departments for recruitment schedule. HR is not
playing a substantial role in motivating their employees. Although they had claimed that,
they are having a strong motivational system but they are some what lacking in giving the
sense of achievement to their employees

ii. Administration

Haleeb has a very extensive admin department. The responsibility of this department is to
take care of myriad issues ranging from buying new vehicles plus to arrange some sport
events for their employees. All purchases except for raw materials are done by the admin
like disbursement of stationery and office equipment. For the purchases of the new item
the concerned people has to approve CAPEX from the Admin

37
iii. Quality Assurance

Quality assurance department also has a very vital role in an organization. Quality
assurance department is involved in developing systems to ensure products or services
are designed and produced to meet or exceed customer requirements. These systems are
often developed by using a cross-functional approach. Many organizations are dependant
on this department.

Quality is synonymous with Haleeb. Haleeb has a separate department for QA and they
are following strict control policies. Every product made by Haleeb guarantees the use of
quality materials and processing. This is all due to the strict Quality Control standards,
observed at every stage of the production, from raw materials to dispatch Department.
The Research Development and Control Department makes stringent requirements on
quality control, which help in working consistently towards attaining better results for
customers. The incoming raw materials and end products leaving the factory are
constantly checked to make sure the items produced meet the expected standards. To
ensure constant quality and improvement this department managed by qualified
scientists.

For instance as the milk comes in HFL production plant, their first job is to take sample
of the raw milk and check the suitability of milk either the milk is able to proceed further
or not. If the sample passes, they start measuring those standards they are following till
the end they again test the products for the suitability to shipment

Quality Policy:

We are committed to

1. 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.

38
 2. Meet the requirement of all relevant legislation and regulation related to consumer
satisfaction & safety, environment and other applicable laws etc.
3. To prevent pollution through controlling levels of harmful emission, effluents and
other wastes.
4. Contribute to safe and healthy environment for our country.
5. Promote mutual trust with customers, suppliers, employees, shareholders and
community.
6. Provide all the necessary resources for the continual improvement in quality,
safety of our products, processes and environment

iv. Marketing Department

We are living in an age of Marketing. Marketing Department is of paramount importance,

because it plays a link between the consumer and the manufacturer. The function of the
Marketing Department is to ensure that consumers receive what they need. If marketing
department works effectively and efficiently, the whole organization is on a smooth run.
It also plays a key role in the operations of the organization. Haleeb has a vibrant
marketing department too. This department is responsible to take charge by reviewing the
sales report and if any deal is going on regarding packaging, distribution or any other
concern, it contacts with the representative persons. Current market demand is estimated
through the distributors. They also carry out market surveys for new as well as existing
products.

v. Finance

Finance is also an important issue. Haleeb also has a well equipped finance department
with the resource but at times there are issues with delay in work from their side main
problem which we have observed is in the costing of some new items.

39
vi. Decision Making System

Haleeb is using Centralized Decision making system. Although they have claimed that
they empower their employees to become more participative and more committed
towards their organizational goals. But in reality it’s a nightmare.

vii. Motivation and Incentive Techniques

Haleeb claims that they are using the best practices to motivate their employees like
recognizing the efforts of employees, giving them rewards and incentive, occasional
bonuses, giving commission on achieving targets etc. But in reality they are some what
lacking in that.

7. MARKET ANALYSIS

The market coverage strategy that Haleeb has opted is Product Specialization and the
competitive positioning strategy that they have adopted is product development .They are
now the market challengers and using frontal attack strategy.

According to the current situation what they currently do is that they opt for Market
Penetration. The main things that can be done here are:

• Maintain or increase the market share of current products

• Secure dominance of growth markets
• Restructure a mature market by driving out competitors; this would require a
much more aggressive promotional campaign, supported by a pricing strategy
designed to make the market unattractive for competitors
• Increase usage by existing customers

40
1. SEGMENTATION

The Segmentation technique that Haleeb foods have adopted is very simple and straight.
They have just divided the market into segments which are class wise i.e. A, B, C, D.
The Haleeb brick Pack is targeted for class A and B, where as for the classes B and C
they have made their product Haleeb Dairy Queen, where as for B, C, D they have
designed Haleeb Reshami pack that is produced or packed only in the their Raheem Yar
Khan plant and is targeted for the mentioned above segment.

2. TARGETING

The targeting strategy that Haleeb Foods use for the Haleeb brick pack is
Undifferentiated for all the market that is they have a same marketing mix for the
complete market and they take the whole market that includes all the people with
different usage of the product. In such a targeting decision a basic product would be
offered to the whole market that includes almost all age groups and different life styles.

3. 4 P’s AUDIT

PRODUCT ANALYSIS

i. Variety

Haleeb as a whole has a large variety of dairy products that they produce in house and
they keep on going for related diversification whenever they get a chance of doing so. At
Haleeb they have a big variety of milk which comes in brick pack, fino packaging and at
the same time their recently introduced Haleeb Reshami pack, all are the different variety
of ways in which they present their product.

41
ii. Design

Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s
novel packaging formats, Tetra Brick Aseptic (TBA) which is very safe if we analyze it
from health point of view. The color of the packaging is Blue with a traditional white
flower on it, which has become the symbol or icon of the firm.

iii. Features

Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest
standard. The features of the product are vast in such a way, that the products usage is
positive in many ways as it’s a must for someone who is looking for a healthy life style
plus its also got a good place in the religion that milk is preferred on many other things,
other than that the UHT treated milk is valued among the public as they are getting more
awareness day by day to how to adopt a healthy life styles and in such a way the product
features are more and more for the customer.

iv. Brand Name

The brand name Haleeb 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 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 consumers with product and packaging
innovations.

42
v. Packaging

Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s
novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA).
Packed in easy to open, 6-layered Tetra Pak Brick Aseptic packaging, it comes with a 3
months shelf life. It is Haleeb Foods premier brand, and the choice of quality-conscious
consumers who only go for the best.

vi. Packing Details:

1000 ml: 12 packs/carton

500 ml: 12 Pack/shrink-wrapped tray
250 ml: 27 Pack/shrink-wrapped tray

PRICE

The current pricing method being used at Haleeb Foods for Haleeb Brick Pack is Going-
Rate Pricing in which a company sets prices based on what the competitors are charging.
According to the person we met at Haleeb Foods they said, “Haleeb Foods and Nestle
Milk Pack sit together and come up with the final retail price that they will charge”. Rest
of the companies then start charging according to that price.

i. List Price

This is the price that is charged by the retailer to the end consumer for the product and
this is the same all over the market that is, it is same in all provinces and other
geographical locations.

43
ii. Discounts

Discounts are usually related to the distributors and the retailers which are confidential
and vary. Discounts can be given to retailers as well but that would be same for all.
Different discounts can be given to the wholesalers and distributors on the factors like
how much quantity they pick from the company and the same goes for the retailers. Other
than that it is also depends on different factors like payment terms, that is credit or cash
and how quickly do they pay off if they are doing so on credit basis 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 farms is high and the company also has to get rid off the
production as well so they are a bit relaxed with the term and conditions.

iii. Payment Period and Credit Terms

Haleeb Foods does not offer its products on credit terms; they do it mostly on cash but in
only some cases if they do it, they merely do for a maximum two or three day credit only.
This is also an important factor on which they seriously need to think on as their
competitors are doing this quiet frequently.

PLACE

i. Channels

It is the mechanism through which goods are moved from the manufacturer to the user. At
Haleeb foods it is very simple, the finished products move from them to the wholesalers
and they make sure that they deliver it to each and every retailer.

44
ii. Coverage

With their large number of distributors they make sure that the product is available almost
everywhere and to make sure about such issues they have divided areas among
distributors who are responsible for the product availability and on time delivery.

iii. Locations

Haleeb brick pack is a frequently used item and can be termed as a product that fulfills
the basic needs of the consumers, so it is made sure that it is available at almost every
grocery store and convenience stores and as Haleeb is such a brand that is in the market
from many years the retailers also are happy to keep it.

iv. Transportation
The products are delivered through the distributor vans in case of Haleeb brick pack.

PROMOTION

Haleeb Foods have been using both the Push and Pull Strategy in order to do the
promotion of their product. 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 TVCs 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 single retail outlet in Lahore which is their most
valuable market area wise that they are catering to. Their advertising campaign was not
only targeted for the consumers but that campaign was also especially designed for the

45
retailers as well 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 given different hand
outs in which the company, Haleeb Foods asked 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 retailers to give some
special shelf space to their product as a certain pull would be created after all that
campaigns on TV and through the print media. Other then this all the staff which goes
into the market is an ambassador of the company and portrays the image of the product
and Haleeb foods also realizes this fact and plays special attention on such small aspects
and has been taking steps to keep on monitoring the performance of such employees and
has certain instructions that are to be followed by the distributors while they do their
work. In their current marketing campaigns they have been extremely focused about
clearly getting their message that is Garha Doodh i.e. Haleeb is the thickest milk as
compared to other milk, as they are required to portray their product as Unique from the
other ones in such a market. As they have a leader like Nestle Milk Pak to challenge so it
becomes more difficult and challenging for them to challenge such a giant in this ever
dynamic environment. In addition to this as their product which is of daily usage and
involves low Buyer involvement they strictly need to keep on focusing intensely on this
part of the marketing mix which from the last couple of weeks they have been trying to
do so. During the Eid days they had shown immense TVC’s of Haleeb and that seemed to
be a re-launch of their product i.e. Haleeb Brick Pack. The methods of promotion used by
Haleeb Foods for the Haleeb brick Pack in their recent advertising campaigns are as
follows:

Affiliate Program, Banner Advertising, Billboards, Flyers, Magazines, Radio,

Sponsorship of Related Events, Television Commercials etc.

4. Market Share

Haleeb has a 28% of the total market share. They are the market challengers. The market
leader is of Nestlé’s with 36% of market share.

46
5. USP’s

The key to effective selling in this situation is what advertising and marketing
professionals call a "unique selling proposition" (USP). Unless you can pinpoint what
makes your business unique in a world of homogeneous competitors, you cannot target
your sales efforts successfully.

Pinpointing your USP requires some hard soul-searching and creativity. One way to start
is to analyze how other company’s use their USP’s to their advantage. This requires
careful analysis of other companies' ads and marketing messages.

Haleeb have certain USP’s.

1. They have thickest milk available in the market. And it is milk best use for
making tea and coffee.
According to their slogans:
“Chai banae khoob Haleeb--- Sub se garha doodh Haleeb”

2. They have recently launched “Creamy Custard”, it is a unique concept introduce

by Haleeb and according to their slogan”
“Haleeb Custard----It’s Creamy!!”

3. The premium cream processed hygienically from pure fresh milk, Extra cream is
added in Haleeb Cream to make its taste luxuriously rich and have extra
nutritional value.

47
6. COMPETITIVE ANALYSIS

• Nestle Pakistan

The strategic priorities of Nestle Pakistan are claimed to be focused on delivering

shareholder value through the achievement of sustainable, capital efficient and profitable
long-term growth. Improvements in profitability would be achieved with due respect to
quality and safety standards at all times.

In line with the above objective, Nestle Pakistan aims at growing into a number one food
company in Pakistan in the shortest possible time with the unique ability to meet the
needs of consumers of every age group - from infancy to old age, for nutrition and
pleasure, through development of a large variety of food categories of products with
highest quality.

Nestle Pakistan envisions that the company should develop an extremely motivated and
professionally trained work force, which would drive growth through innovation and
renovation. Special training programs have been designed for employees at each level to
keep up with and develop this vision.

The study concludes that Nestle has a significantly high growth rate (36%) and has grown
and developed at a high pace in short span of time. On the other hand Haleeb has a
market share of 28%. The major contributor toward this growth and development are
human resource, marketing and sales departments. The major contributor is its
appropriate strategy particularly its relationship with the social and environmental
sectors. Perhaps this is the reason that it in spite of being a multi-national has been well
accepted in Pakistani culture. There are ample chances of its survival in future.

• Keeping new players such as Olpers, and the old one’s like Haleeb, Nestle focused
more on advertising.

48
 • Nestle have been experiencing a constant increase in cost with raw material
contributing the larger part of this increase. Haleeb having their own suppliers so the
raw material cost is bit low.

• Nestle maintained its value of gross profit margin around or above 30% to ensure
that it has a strong control over its costs, and the efficiency of production. But on the
other hand, Haleeb faced a bit of down fall when Olpers introduced their campaign.

7. POSITIONING

Haleeb foods have been positioning its product 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 as their slogans have tend to show the target
public is bored of their slogans, according to their slogans “Chai banae khoob Haleeb”

They have portrayed their product with a limited usage i.e. it is only good for making tea,
where as it could have been positioned as for drinking purpose as well and other then that
it could also have been positioned for usage in the Kitchen i.e. for cooking and for
making sweet dishes as well. Positioning is the only way through which a company can
increase the functionality of its product and can portray it as a more useful product. In
their recent campaign their tag line was:

“Aik Garha rishta umer bher k liye”, which did not sound that much touchy to us.

49
8. FINANCIAL RATIO ANALYSIS

1) Liquidity Ratios

LIQUIDITY RATIOS

/Current Assets
= Current Ratio Current Liabilities

= Quick Ratio /Current Assets—Inventory

Current Liabilities

YEAR CURRENT
QUICK RATIO
RATIO
0.88
2006 0.45

2007 0.94 0.46

Remarks:

50
 • This ratio indicates to what extent cash on hand and disposable assets are enough
to pay off short term liabilities. A current ratio of assets to liabilities of 2:1 is
usually considered to be acceptable. Acceptable current ratios vary from industry
to industry. If a company's current assets are in this range, then it is generally
considered to have good short-term financial strength.
• If current liabilities exceed current assets (the current ratio is below 1), then the
company may have problems meeting its short-term obligations. If the current
ratio is too high, then the company may not be efficiently using its current assets.
• In the case of Haleeb’s current ratio has increase from year 2006 to 2007 which
indicates that it has improved to pay short term obligations as compared to the last
year.

2) Leverage Ratios

LEVERAGE RATIOS
/Total Debt
Debt to total asset Ratio
Total Assets
. / Total Debt
Debt to Equity Ratio
Total Stockholder’s Equity
Long-Term Debt/ . Total
Long-Term Debt to equity Ratio
stockholder’s Equity

Long-Term
Debt to Total Debt to Equity
Debt to Equity
Year Asset Ratio Ratio
Ratio

2006 0.80 4.1 2.04

2007 0.74 2.85 1.40

Remarks:

51
 • The Debt to Asset Ratio takes into account all debts of all maturities to all
creditors. A value of less than 1 in this ratio means that the company could not
cover all of its debt by selling all of its assets. HALEEB’S assets are mainly
financed by outsiders or debts. This ratio measures the percentage of total funds
provided by creditors versus by owner.
• Look for a debt to equity ratio in the range of 1:1 to 4:1. Debt-Equity ratio
indicates that capital structure of HALEEB is mainly based on debt financing.
• This ratio for HALEEB is showing that out of total funds available for long term,
major portion is equity. As compared to the last year the company’s position is
improved as they have made more investments.

3. Activity Ratios

ACTIVITY RATIOS

Sales
Inventory Turnover Inventory of finished goods
Sales
Fixed Asset Turnover Fixed Assets
Sales
Total Asset Turnover Total Assets
Annual credit Sales
Account Receivables Turnover Accounts Receivables
Account Receivable
Average collection Period Total credit sales/365 Days

Account
Inventory Fixed Asset Total Asset
Receivables
Year Turnover Turnover Turnover
Turnover

2006 9.8 2.65 1.70 6.3

2007 9.9 2.76 1.78 7.5

Remarks:

52
It shows that in how many days company sold the entire inventory. The higher the ratio
the more is inventory being managed efficiently. Because inventories are the least liquid
form of asset, a high ratio is generally positive. This ratio measures how productively the
firm is managing its fixed assets to generate sales.

For every Dollar in Assets how much sale we have generated. Higher the ratio greater
will be the resource utilizations. It indicates that how effectively HALEEB is utilizing its
resources. This gives indication of how fast we can sell product. So we will see how fast
we collect on those sales. HALEEB’S receivable turnover is improving. Therefore on
average HALEEB collection period is decreasing, so its recovery performance is
improving day by day.

4) Profitability Ratios

PROFITABILITY RATIOS

Gross Profit Margin Revenue-cost of sales/revenue

/Net Income
(Return on Assets (ROA
Total Assets
. /Net Income
Return on Stockholder’s Equity
Total Stockholder’s Equity
/Net Income
Number Of Shares Of Common Stock
Earning per shares
Outstanding
/Market price per share
Price earning Ratio
Earning per shares

Gross Return on Return on Earning

Year Profit Assets Stockholder’s per
Margin ((ROA Equity shares

2006 28% 10% 53% 30.06

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 2007 28% 11% 44% 39.81

Remarks:

• This ratio indicates the amount of income that the company earns on each RS of
sales. The gross profit margin is related to the net profit margin, which assesses
the profitability of an organization after including fixed costsThe trend in this
ratio from month to month can show how well the company is managing their
operating or overhead costs. The margin has not changed in the current year
which shows that the company’s operations are stable. This shows the amount
available to stockholders or owner of the company, so higher the ratio there will
be higher earning and dividend for stockholders.
• ROA measures profit per rupees of assets. We can compare this rate to the interest
rate that the company pays to borrow funds. If the return on assets is above the
borrowing rate, the company is profitable.
• ROE measures profit per rupees of equity. This ratio indicates what return the
company is generating on the dollars invested by its owners. High values for this
ratio indicate that the company is less likely to require debt or additional equity
investments. HALEEB’s return on equity is declining.
• This ratio shows the amount of earning per share and a company with earning per
share. This ratio indicates that the company with high earning per share will be in
a position to declare the high dividend. This ratio has improved this year.

8. OTHER STRATEGIES

i. R&D

To keep up with new demands Haleeb has a Research & Development Department. This
Department is considered as one of the most important department. The Research &

54
Development Department works in close collaboration with the Production Department.
It helps the Production Department to maintain a standard of the products being
produced. All the new materials are tested according to the certain specifications. It also
has a lot of interaction with the Marketing Department, because marketing department is
responsible to inform them, regarding the sale of particular product either it is good or
not. Hence that department is responsible for conducting research and go for certain tests
in order to sort out that particular issue. In addition to that they also provide support to
the production department by coming up with new ways of improving quality and also
increase the efficiency.

ii. Procurement

Procurement is basically the acquisiton of goods or services at the best possible total cost
of ownership, in the right quantity and quality, at the right time, in the right place, and
from the right source for the direct benefit or use of corporations, or individuals.

Haleeb also has a very strong procurement system. Haleeb also having their own farms,
the main function of this department at haleeb is to procure the acquired goods and
services. Procurement activities at haleeb are split into two distinct categories.

• direct, production-related procurement

• Indirect production-related procurement.

Direct Production-Related Procurement

The main responsibilty of this department is to encompass all items that are part of
finished products, such as raw material, components and parts. Direct procurement,
which is the focus in supply chain management, directly affects the production process of
manufacturing firms. Under the supply chain all the products after packaging are trasnfer
to the ware house from there they are loaded to the vehicle and transported to the desired
destiny.

55
 • Stock report generated on a daily basis
• Then order sheets are made according to the stock report
• After doing that they made arrangements to load that particular order
• In the end the order is dispatched and the whole process is completed.

Indirect Procurement Activities Concern

Haleeb also doing indirect procurement activities.In contrast with direct procurement,
indirect procurement activities concern “operating resources” that a company purchases
to enable its operations. It comprises a wide variety of goods and services, from
standardised low value items like office supplies and machine lubricants to complex and
costly products and services like heavy equipment.

iii. Production Department

Planning and Production are the most important department. Production department is
responsible for turning input into output through a series of production process. It also
controls all the operations under the factory. The production department looks after all the
production functions and checks out that the production is going on according to the
given schedule. They are also responsible for any delay in production process. Plus the
production manager is responsible for making sure that raw material are available and
then turned out into finished goods efficiently. The role of the manager is to make sure
that the work is carried out smoothly.

The first shift in charge take his control and then he review the ongoing production, how
much it done and how much it needed in order to meet the order, so they keep the process
going on till the order gets completed. They continually communicate with the employees
of other departments like for quality assurance section regarding the goods which are

56
produced are meeting up the quality assurance standard or not otherwise they opt for
certain test.

And if they get any order from the representative production manager from other
department the employees of the production department go for to check the availability of
the raw material which they need in order to fulfill the order and then they proceed the
order to subordinate after the order get done. They handle the stock to ware house and get
a slip in return as a proof and then dispatch.

10.CONTROL PROCEDURES

1. Marketing Control:

There is no planning without control. Marketing control is the process of monitoring the
proposed plans as they proceed and adjusting where necessary. If an objective states
where you want to be and the plan sets out a road map to your destination, then control
tells you if you are on the right route or if you have arrived at your destination.

Marketing information Systems are used at Haleeb Foods in the form of a separate
department that works with the name of IS dept. They are responsible to generate reports
for any department if required. Marketing planning system was not working efficiently as
according to the distributors they were at times not able to get their demanded products in
the specifications that they wanted to have for example quarter pack is in high demand in
summers. Etc. Marketing Control System is monitored by the brand manager and they
continuously keep a check and balance of their results and their desired status. NPD at
Haleeb Foods is done by a separate individual who is in touch with all the related brand
managers and keep on giving ideas and then select the one that can be implemented.

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 2. Production Control:

Production control usually involves a specialized staff to manage batch scheduling. This
work might involve daily and weekly backups running at particular points within a
complex sequence of application suites.

Production control is not that much effective at Haleeb Foods as they have a large
portfolio of products which makes it more difficult to distribute the scarce resources
among all brands. They are not doing proper analysis as some of their products is not that
much successful in local market and still they are continuing them. But on the other hand,
they are exporting them out side, so they are earning more revenues.

3. Quality Control:

The Haleeb Foods Limited (HFL) is taking care of quality of production by using
acceptance sampling procedures.

Company officials reported that they were very strict about the quality and employed
state of the art technology to ensure quality of the milk procured from various channels.
Also, told that quality and regular supply were the sole criterion for selecting suppliers.
VMCC agents ensured quality on the behalf of company and again the milk procured by
each VMCC had to pass quality checks at PHE.

To check the validity of sampling plan adopted by HFL, 30 sampling plans are compared
with respect to AQL, AOQL, ATI and LTPD. The results and conclusions show that
quality is always towards an improvement trend. The technology is no more the
superiority as it is accessible to every one. Investigation and reduction in variations is a
key to process improvement. For HFL a single sampling plan with N=2700, n=30 and
c=1 is suggested, for better quality products.

4. HR Control:

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All organizations are made up of people, so organizations always work in benefit of their
employees to have better profitability and results.

The training of the personnel is done in house at Haleeb institute of Leadership which is
done by the HR people and the people from related departments.. In Haleeb, HR control
also works for the retrieval of the key employee’s data and their maintenance.

5. Finance Control:

Haleeb is using financial control to create the value for the share holder by allocating the
resources. As they keep it confidential, they didn’t disclose their financial terms and
procedures.

11.PROBLEM SECTION

Any strategic activity must address two basic issues that are selecting a competitive
strategy and then putting it into practice. Implementation and control address the second
issue i.e. putting the selected strategy into practice. Managers can never underestimate
the importance of the complexities associated with this phase.

Two factors determine the success of a strategy: the strategy itself and an
organization’s ability to implement it. The implementation phase badly needs the support,
devotion and concentration of human resource and this is the key thing that makes the
difference at most of the times. Planning is the easy part of the work but the main thing is
implementation for it needs the hands on knowledge and the experience that will make
sure that the work is taken the way it was intended to be. Without implementation, the
plan remains only as some ideas on a piece of paper.

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There are Some Problems Haleeb is facing according to them and according to our
analysis:

• Centralized Decision Making System

• No Any Aggressive Steps To Counter Competition
• Packaging Problem
• Taste Problem
• No Proper Portfolio Managements
• Weak Promotional and Advertising Campaigns; especially when Olpers launched.
• No Proper Strategy Formulation And Lack Of Strategy Implementation Plan
• No Sales On Credit
• Biased view of consumers due to Haleeb’s thickness.
• Market is not properly segmented
• More focusing on exports, although there is a large opportunity in local market.
• Countless Departments and all have separate departments

12. STRATEGIC RECOMMENDATIONS

As the product is in the maturity stage according to the products life cycle where the
company and the product are well-known and well-established, hence the company
should in order to maintain and add to its market share keep on coming up with
incremental changes in the product and keep on coming up with some promotional
activities that would remind the consumer of the presence of their product.

Capitalize From More Major Markets:

Haleeb Foods Ltd has still got a large market to capitalize as their sales are larger from
Lahore then Karachi which is a far bigger market as compared to Lahore, so they should

60
take steps in improving their market share as well. Karachi market is dominated by
Olpers as they have a plant there and they can do distribution there in a better way and
they have also opened one plant in Punjab as well now which could mean that they can
dominate here as well.

Segmentation:
Segmentation can be done by behavior of the consumer or according to the usage of the
product.

Promotion:

i. Frequent and timely Advertisements: FMCG low involvement

According to the audit that we conducted we came to know that Haleeb had not been
doing advertisement in the recent times and for that reason they were sort of losing their
position in the mind of the consumers that they had previously, so as a result they should
come up with some frequent advertisement campaigns as they are selling a FMCG which
has a low involvement of the consumer so the advertisement and promotion that are used
keep on clicking the consumer’s mind and remind them that are brand is there in the
market. The promotional campaign that Haleeb is currently doing is very attractive and is
also extensive, targeting all the main areas of the Lahore city.

ii. Awareness Campaigns:

As Haleeb Foods has been serving its customers from 21 years and were the pioneers of
the UHT Milk concept in Pakistan and an ISO certified company as well, So they have
got a very strong character in the development of the country as they had been providing
job opportunities to the public and an annual turnover of over 9 billion makes them a big
contributor to the dairy sector of Pakistan, so as a result they should come up with some
campaigns that would help promote them as a brand that is not only to make money but
also good for healthier life style of the general public. In this regard what we

61
recommended is that the company should start some activities like Awareness Campaigns
for the general public, in such a way they would be able to help the consumers in
different ways and also will be able to win some space in the mind of the consumers.
Awareness campaigns recommended by us are of two categories, one for the general
public and one for the country as a whole. The former one would be a good idea to do as
the current government would also help them in this regard as they also want to portray a
softer image of Pakistan and increase the traveling of people to those areas as well and as
a result this would lead to more business in those areas and improving the economy as
whole. The campaigns are as follows:

• Why Haleeb is the thickest, Campaign

• Health and Nutrition Awareness, Campaign
• Northern Areas Awareness, Campaign

iii. Cross-Merchandise Promotion:

This is another thing that we recommended for the company in order to increase the
benefits of the product and to help promote the different ways in which the product can
be used. For this we recommended that the company can promote the product with cross-
merchandise for example, promotion with cereals brand like Kellogg’s, Haleeb can give
its quarter pack free with one big pack of Kellogg’s and can also promote in future in its
advertisements the culture if having Cereals with Milk which will highly be appreciated
in their target segment. Cross Promotion will also help them establish strategic
partnerships with such companies and will help them learn many different things from
such companies that are operating globally as well.

Relationship Marketing Approach:

Haleeb Foods maintaining a 21 year old relation with its customers by providing healthy
and nutritious products has won a strong share in customer’s heart and mind. They should
do more in this regard and try to adopt a Relationship marketing approach.

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Different steps that they can do in this regard are as follows:

• Develop a communication Plan

• Coordinate communications
• Send newsletters
• Send success stories,
• Copies of letters of praise from clientele,
• News of staff awards.
• Breakfast or dinner forums (PR activities)
• Seek advice year-round from elected officials

Personal Selling:

Haleeb Foods can come up with more activities that would involve personal selling
activities that can take place at Sunday Bazaars where the company can set up its stalls
for selling not only Haleeb Milk but other products that are a part of its portfolio like
Haleeb Good Day, Haleeb Cream, Haleeb Asli ghee etc.

Improve the Physical Evidence: Shelf Or Racks

Recommendations were given by us to improve the physical evidence or the shelf

spacing of the product at different levels. This program was designed at two levels and
would be implemented by the sales force of the company and would be monitored by the
marketing team as well. The two levels at which this campaign is designed are as follows:

• Small grocery stores.

• Departmental Stores.

Incentives for Retailers:

Haleeb foods can come up with some special Incentives for a retailer that is they can
facilitate the retailer by giving them refrigerators for keeping their products. As Haleeb

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foods has a portfolio of products which are all from the dairy sector and are required by
the retailer in order to keep the products chilled. This will improve the placement of the
product and will also work as a source of promotion of the brand Haleeb as well in a
better way.

Portfolio Management:

There is no proper portfolio management at Haleeb Foods Ltd as they have now a
number of products in which they are operating. There are still a large number of
products that they have not advertised yet and hardly anyone is aware that they are
launched or available in the market. So they should analyze this aspect as well and divest
the dogs according to the BCG Matrix, for the question marks to perform in a better way.

Reduction of Countless Departments:

Too much departmentalization results in the in-effective communication between them,

so either they should opt for better communication measures or should lessen down the
departments or organize meetings that would reduce the gap.

People:

Another recommendation is about the people who are associated with the distribution of
the product. It is recommended by us that a company’s employee should accompany the
distributor not only for order taking but should also go with the distributors when the
products are delivered to them in order to make sure about that the work is done the way
it was intended to be.

Proper Corporate Environment:

The final decision making is with the CEO of the organization, who has the right to Vito
any issue at any time; this leaves a demoralizing and a de-motivating effect on the people
working under them. Once this happened when they had designed a proper campaign and

64
it was just refused by the CEO Ch Illyas, because it had some glamour issues etc. so they
should be a little co operative and a bit more strategic in their approach.

Proper Supply Chain:

Haleeb Foods has an economic source of power over its distributors and suppliers as it is
a bigger firm as compared with its other channel members. There are minimal or no
chances of backward integration by them so the company has a stronger bargaining
power over them.

Sales on Credit:

Another major problem that we came across during our audit was that Haleeb was not
doing any credit sale with the distributors which are frequently being done by its
competitors. As in the past few years many companies have entered the dairy sector
(UHT MILK) like Olpers, Good Milk, Nirala etc so such companies have come up with
lenient terms and conditions for both the distributors and the retailers as well. So in such
circumstances Haleeb should also give some facilities to its distributors in the form of
sales on credit and a result the distributors would be doing the same for the retailers and
accordingly the retailers would be happy to keep Haleeb’s products and this will improve
Haleeb’s overall image and availability in the market.

Return Policy:

There are return policies at Haleeb Foods which are clearly defined but the problem that
we found from the distributor side was that they were very slow to give the replacement
of the expired products. According to them this process pinches them a lot because its
wastes their time and blocks their investments as well.

Sales Analysis should be done:

65
A recommendation from us is about the Information systems that they are having at
Haleeb Foods. According to our recommendation they should monitor Sales trends from
the reports generated by these information systems. According to the distributors, days do
come in the year when the quarter pack is high in demand as compared to all other
packaging sizes, so in order to be ready to fill up this gap in the market; they should
monitor the trends and be pro-active rather than being re-active.

Not Good Relations with The Distributors:

Distributors are the eyes and ears of such organization as Haleeb, as they themselves are
not in touch with the retailers and the end consumer so the feedback can come from them
and this a must ingredient of successful and corrective action. So Haleeb should re think
on its policy with its relations with the distributors.

Decorated Vans:

Neat and clean decorated vans should be used for the delivery of the products; such an
action will work as moving advertisement of the company and will help in brand
awareness as well. Such an action is currently being done by Dawn and it leaves a very
good impact on the consumers with such high quality flexible printing with attractive
pictures for the brand promotion.

Other Recommendations:
• Haleeb food Ltd. should allocate a healthy budget for advertising its products, if
really wants to compete at par with its direct competitors.
• HR department of HFL should introduce HRIS to increase the efficiency of the
company; they also need to co-ordinate more effectively with other departments
for the purpose of better recruitment.
• The co-ordination between different departments of HFL should be improved it
will lessen the bureaucratic cost and increase the efficiency of the company.

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• The activities like customer satisfaction day should be performed on regular basis
so the company should know the feedback and satisfaction level of customers
regarding the product and the image of the company.
• The shopkeeper complains that HFL is not providing replacement for the expired
products, HFL should provide proper replacement to the shopkeeper to enhance
the image of the company, and create better working relations with such an
important stakeholders.
• Haleeb has shifted to branding concept but it really has not adopted it fully, for
smoother working of the different brands, the sales teams should merged with
respective brand management.
• There is no check on the performance of the distributor, and this has led to huge
problems in the delivery of many products in some areas of the city.
• Haleeb is not concentrating on the country wise basis; its major focus is only at
Lahore and adjacent areas.
• Haleeb has to change its perception of milk for tea only, as it is not taken as milk
for general consumption, so it looses a large chunk of consumers in the packaged
milk market.
• Haleeb has launched too many products; it really needs product analysis and cut
down its product line, only leaving the profitable brands or the brands with some
good potential in the future.
• Promotional mix at HFL is not well integrated, they are not able to communicate
the strength and benefits of their products to the customer, and they need to come
up with more innovative and communicative promotional mix.

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13.MARKETING ANALYSIS AND RELAUNCH OF
HALEEBLABBAN

Packaged Lassi

68
 (Launched in 2004)

Failed to achieve desired objectives

PROBLEMS IDENTIFIED

The problem of this study is to identify the reasons which led to the failure of Haleeb
Labban and to design a marketing plan that should be adopted for its re-launch to make it
a success in the market.

• No direct competition; a niche segment

• Indirect competition comes from packaged beverages
• Consumer values, perceptions and preferences towards this product are very
favorable.
• People becoming skeptical about consumption of carbonated drinks and packaged
juices.
• Store was not currently carrying Labban.
• Blamed lack of availability of Labban to the lack of awareness about the product
• Company policy itself to produce very little quantity hindered the growth
• Less Preferred to consume fresh fruit juices/Carbonated drinks in summers to
quench thirst.

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 • People are ready to buy packaged lassi if it offers the same quality and freshness
as does the home-made lassi.
• Most of the members were aware of Haleeb Labban but they did not know the
meanings of the word “Labban”.
• Could not associate the green color of the packaging with lassi; it should be
whitish and illustrations should be very tempting and refreshing
• Most of the participants had not seen any of the billboards or advertisements
• People felt that the product is not easily available also no free samples distributed
to induce trial
• Housewives preferred lassi in bottle because of ease in carrying while students
liked it in Tetra packaging

COMPETITOR REVIEW
• Packaged lassi has no direct form of competition
• There is no direct competition for packaged lassi; this is a niche segment in
packaged dairy products and has not yet been penetrated.
• However indirect competition comes from all kinds of drinks
• Packaged juices ( Rs 15/ 250 ml)
• Carbonated soft drinks (Rs 12/250 ml)
• Fresh fruit juices/milk drinks (Rs 40-70/250 ml)
• Home made traditional drinks (closest competitor!)

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 Perceptual Map for Lassi
High Nourishment
Lassi
Shakes

Packaged Fresh Fruit Drink

Juices

Less cooling effect High cooling effect

Carbonated
Soft Drinks

Low Nourishment

Perceptual Map for Competing

Home-made Drinks
Socially desirable
Drink
Home
made Fresh
shakes Juices

Low Consumption / High

day consumption/day
Doodh Soda
Sutoo

Kangi Lassi

Family Drink

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 SWOT ANALYSIS

STRENGTHS
• Labban brand appeal is high
• (stems from brand umbrella of Haleeb)
• Ranks high on hygiene
• Pricing is very appropriate (as perceived by consumers)

WEAKNESSES
• Lack of availability at retail outlets
• Lack of consumer awareness
• Inadequate promotion campaigns
• Poor on attributes of freshness, thickness and creaminess
• In appropriate packaging color scheme

OPPORTUNITIES
• Lassi as a product category is well established
• Lassi is liked for its taste, coolness and nourishment.
• No established brand
• The customers can mainly distinguish between Home-Made and Out of Home
made Lassi
• Lassi is considered a cultural drink.
• Consumer is willing to pay more for value addition.

THREATS
• Lassi is perceived to have a sleep inducing effect
• Lassi is not served to guests in modern households.
• It is considered a cultural drink and doesn’t go with modern lifestyle
• Competition from packaged juices & carbonated drinks

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 • Packaged Lassi would face mindset barriers specially on Taste, froth and
thickness

TARGET MARKET
Adult females and males (25-45 years):
• These adult females and males belong to the income group of SEC A & SEC B.
• The adult females are mostly housewives, health and hygiene conscious and are
expected to shop for monthly groceries themselves

Teenagers and College-goers:

• This segment also belongs to the income group of SEC A & SEC B and lives in
different parts of Punjab.
• These young people consume packaged or loose lassi during the summers.

RE-LAUNCH OF LABBAN
POSITIONING
• To break the mind-set barriers of the consumers regarding the concept of
packaged lassi
• To position Labban in a manner that it is regarded as a product with the highest
nourishment and cooling effect without any side affects.
• To position Labban as a perfect substitute for fresh fruit juices and carbonated
drinks

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PRODUCT

• Change the packaging colour from bright green to a soothing creamy yellow

• To achieve cost-effective printing on packaging

• To increase the thickness/creaminess content of Labban by 10%

• To improve the smell and colour of Labban to resemble home-made lassi

• To introduce two variants in Labban–sweet and salty

DISTRIBUTION

DISTRIBUTION OBJECTIVES (for the year 2012)

• To re-launch Labban in the cities of Lahore, Rawalpindi, Islamabad, Faisalabad
and Gujrawala
• Achieve trade penetration in 1500 outlets nation-wide by the year end 2009.
• Increase focus on semi-urban areas
• Increase retailer margins from 10% to 20% as par industry norm

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 • To achieve shelf-space of 5% (of packaged beverages) at eye-level in major retail
outlets.
• To convince retailers to place Labban in refrigerators (as par demand)

PRICE

PRICE OBJECTIVES (for the year 2012)

To maintain the price of Labban’s 250 ml pack at Rs 12 and its 1000 ml (1 Litre) pack at
Rs 32

PRICING STRATEGY

The strategy of maintaining the current price structure is followed as findings of the focus
groups and consumer survey clearly indicate that it is very correctly priced i.e. neither
under-priced nor over-priced.

BRANDING OBJECTIVES

• Pioneer the concept of Packaged Lassi by leveraging Haleeb brand Equity.

• To play the role of aggressively developing and growing the Packaged Lassi
market through consistent consumer, brand and trade activation.
• To increase customer identification of Haleeb Labban
• To induce customer loyalty and repeat purchase
• Haleeb Labban Brand Personality can be described as Fun Loving, Trustworthy,
& Friendly

SLOGAN
The slogan that we have proposed for Haleeb Labban is
“Must Maza Lassi say Milay”

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PROMOTION

PROMOTION OBJECTIVES (for the year 2012)

• The promotional theme should carry a functional appeal that highlights the point
of difference of high nourishment and cooling affect without any side effects.
• Hygiene factor should be stressed to gain competitive advantage over loose
‘bazari’lassi.
• Instore displays and sales promotions to retailers should be increased by 20%
• Increase the number of print advertisements by 30% (billboards,banners,posters)

PROMOTION STRATGIES

• The communication would be based on Product Route i.e. highlighting the key
features of the product:
• Thickness, Frothiness, Creaminess
• Two variants – Sweet and salty
• Made from 100% natural milk and cream
• Paint the towns with Haleeb Labban colors to create festivity and impact in the
market.
• Shop signage, shops banners, streamers, posters
• Print and outdoor campaign highlighting functional/emotional benefits
• Store intercepts, mobile vans carrying labban advertisements
• Branded Kiosk – Labban corners
• Stalls at selected shopping malls
• Road side selling should be carried out in Lahore and Islamabad.
• Selling at public places like parks and markets can be carried out.

Labban Breakfast Festival:

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Arrangement of a breakfast for families with Labban, Good day and halwa puri in a
major park such as Polo Ground

CHANGING THE COLOR SCHEME

PROPOSED AD CAMPAIGN (Teaser)

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STREET BANNER

78
79