Strategic Marketing Haleeb Foods

Strategic Marketing Plan

For

The “HALEEB FOODS (JUICES)” January 1, 2004 to December 31, 2006

Prepared by: HORIZON Date: 2 P

ndP October, 2006

We at first bow my head before Allah Almighty who bestowed his countless blessings upon me, guided me towards the way of success, blessed me with courage of facing problems and obstacles; enable us to accomplish this project work.

All thanks to Allah Almighty, the most Beneficent and Gracious who enabled us to complete this project.

We found no words to say thanks to our families for their cooperation and support.

We wish to place our deep sense of thanks to SIR SOHAIL ISLAM who guided us to complete this project in its true sense. His valuable experience and knowledge of the field removed the difficult at all crucial junctures.

We are dedicating our project of “SAGA Sports” to our respected teacher Sir Sohail Islam for his effort to transfer the essence of his experience and knowledge to his students.

Executive summary

Haleeb Foods was established in 1983. Since then it has continued to provide quality products to its customers with products and packaging innovations. Haleeb is Pakistan’s number 1 and fastest growing food company. The company is trying their level best to differentiate themselves from other local companies and trying to win the competition in juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. This project report covers the broad area of impacts of controllable and uncontrollable variables in remote environment for the company, like economic boom or slump, segmentation on the basis of cultural likings and disliking of the consumers along with the social set up and their purchase behavior, food laws, taxation, import duties and the technological advancements. This report also provides the information how these variables pose threats and offer opportunities for the company and how the company should neutralize threats and exploits opportunities. An important part of this project report comprises the market situation in which Haleeb is competing. Market acceptability of its products and the upcoming trends regarding to juices and drinks are also discussed. A detailed information about competitors like Nestle which is also the market leader and Shezan, and how they are affecting the company is also provided. An overview of distribution system and criteria of Haleeb in case of juices. A brief description of the company’s marketing, non marketing and management’s capability is given which tells us about the company’s internal strengths and weaknesses. Then comes the most important portion of the company’s operations, which is the strategic management of marketing mix I-e 4Ps. A comprehensive detail is provided about the company’s strategies devised to maintain and develop the product line (juices), strategies to set and quote the prices, their distribution patterns and logistics. The image Haleeb wants to develop in the minds of their customer and the extent to which they are succeeded through their promotional campaigns is explained in this report.

The future expectation and objectives about the company’s financial position for next few years and the ratio analysis helps us to conduct the budgeting for the company. An additional portion of this report including the swot analysis, twos matrix, CPM, QSPM and others explain the strategic position of the company. Haleeb Foods has built yet another plant in Rahim Yar Khan whose purpose is to provide Haleeb’s quality products to maximum number of consumers. And a plan to extend their product line in case of juices and has an intention to introduce new flavors of pure juices, nectars and juice drinks.

Contents History 4Sporting goods 8

Situation analysis 9Main exports of firm 9Basic information 14 Nike sacks saga sports Nike to resume football production in Pakistan Technological forces Natural environment forces External environment – near environment 30 Market review Competitive review Distribution channels and buyers (intermediary customers) End user customers Supply Critical success factors 46 Summary of opportunities Summary of threats Situation analysis – Internal capabilities 50 Non-marketing capabilities Marketing capabilities – Management Marketing capabilities – Marketing strategies and performance Problems and opportunities statement 52

Marketing objectives and higher level marketing strategies 53

Marketing mix strategies 57

Analysis portion 75

Financial Analysis 84

Evaluation and control processes

Analysis Portion

27

Appendix 1: Worksheet for developing marketing objectives and higher-level marketing strategies

28

INTRODUCTION 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 THaleeb LabbanT, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt, TCandia Tea Max T, cardamom flavored tea whitener, TCandiaT milk, packed in distinctive food grade plastic bottle, and THaleeb Good DayT, 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 2005, its annual turnover is Rs. 7.2 billion.

TUInternational CertificationsUT

Haleeb Foods’ products are made with great care, and marked with our quality seal of recognition. We are the only dairy company in Pakistan that undertakes 21 rigorous quality control tests on every portion of the milk collected by our teams. These internationally recognized tests are used to check for: a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents. All processes, from preparation to quality assurance to packaging, are undertaken employing state-of-the-art technology and equipment. Therefore, we take great pride in the fact that Haleeb Foods is the only food company in Pakistan that has the following international certifications of quality and prestige:

• HACCP (in process controls for safer products)

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

SITUATION ANALYSIS Business definition and scope Mission statement(s) “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”

Product definition At the industry level (total of all product categories):

The product under consideration in this project report belongs to the beverage industry. And are the fruit juices.

At each product category level

Product category: I A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. Six premium juices

• Apple • Pineapple • Red grape • Mango • Orange and • Mixed fruit

Give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.

Product category II Delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Fun day juices will surely be an instant success with kids with their unique and amusing names,

• Aamonka (mango) and • Arrochee (peach and lychee).

They are packed in a 6-layered Tetra Pack Brick Aseptic packaging. Product Category III The premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavours:

• Apple • Mango, and • Mix fruit

These juice drinks are packed in a 6-layered Tetra Pack Brick Aseptic packaging.

Product categories targeted by our organisation and our products competing in those categories

Product category Competitors’ products Pure juices

Pure juices

Nectars

Nectars

Juice drinks

Juice drinks

Competitors and their products competing in these product categories: Competitors Competing products

Nestle

Pure juices ,nectars and juice drinks (other than red blood keno)

Shezan


The market – Customers (end users) – for the product categories targeted by our organisation

Charecteristics of the customers for the products of categories targeted by our organisation include:

Category I

Scope

Scope of their target market In this segment is not very broad, becase they are foccussing only elite class of the country, which are very fewer in number. But at the same time the current and projected sales are not very small. Because of theuse situation which explains that These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these

Income:

People having income 50,000 and above.

Age:

Youth an old age people are taken as the most important targets

Gender:

Females in emphasis, while males also are considered

Family-size All family sizes

Life-cycle stage That life cycle stage is given more importance which includes more young people

Geographic location A class superstores and grocery stores in the high traffic markets in posh areas of all the cities of distribution throughout the Pakistan.

Use situation These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and don’t include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices.

are highly energetic and hygienic and don’t include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices and brand loyality in this case may lead to strong purchases.

Category II

Scope

Scope of this market segment is satisfactory because they are targeting middle class of society which include relatively greater number of population as compared to that of upper class. They are expecting larger sales in this segment.

1. Income:

People having income Rs. 30,000-35,000 are included in this segment.

Age:

All age groups are considered such as: children, youth and old age.

1. Gender:

Both genders i-e male and female are included in its target consumers.

Family-size All family sizes

Life-cycle stage Every stage of the life-cycle is considered.

Geographic location High-class as well as middle super stores in high traffic markets of both posh areas as well as middle class towns and colonies of big cities throughout the Pakistan are targeted.

Life- style

These “Nectars” are offered to that class of society that are sophisticated, quality conscious but cannot afford as much high prices as of Good Day. Its hygienic packaging also attracts health conscious people.

Category III

Scope

Scope of this segment is very broad as they are focussing each and every person in middle and lower clas. The scope of this segment can be estimated from this calculation that Haeeb is selling 800,000 units of juice drink specific for this segment.

Income: People having low income level and the children who are not earning hand and are dependent on pocket money are included in this segment.

Age: School going children and college students are given high importance while people of all other age groups are considered as target groups.

1. Gender: Both genders i-e male and female are included in its target consumers

2. Geographic location: Through out the Pakistan in both privileged and un-privileged areas.

3. Use situation/occasion:

These are the simple drinks, which are used in school/college canteens, parks, small shops at roadsides, bus stops and on small and large general stores in streets etc.

SITUATION ANALYSIS Business definition and scope Mission statement(s)

“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”

Product definition

At the industry level (total of all product categories):

The product under consideration in this project report belongs to the beverage industry. And are the fruit juices.

At each product category level Product category: I A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. Six premium juices

• Apple • Pineapple • Red grape • Mango • Orange and • Mixed fruit

Give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging. Product category II Delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Fun day juices will surely be an instant success with kids with their unique and amusing names,

• Aamonka (mango) and • Arrochee (peach and lychee).

They are packed in a 6-layered Tetra Pack Brick Aseptic packaging.

Product Category III The premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavours:

• Apple • Mango, and • Mix fruit

These juice drinks are packed in a 6-layered Tetra Pack Brick Aseptic packaging.

Product categories targeted by our organisation and our products competing in those categories

Product category Competitors’ products Pure juices

Pure juices

Nectars

Nectars

Juice drinks

Juice drinks

Competitors and their products competing in these product categories: Competitors Competing products

Nestle


Shezan


The market – Customers (end users) – for the product categories targeted by our organisation

Charecteristics of the customers for the products of categories targeted by our organisation include:

External environment – remote environment Economic forces

Scenario UInflation & Interest Rate:

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

inflation rate then increase in prices of HALEEB JUICES but if in

Pakistan economy deflation when no decrease or effect on prices of

HALEEB JUICES. About interest rate HALEED FOODS has own

equity so no pay any interest.

Personal Saving Rate:

Personal saving rate of HALEEB is 5%

Disposable & Discretionary Income:

Disposable & Discretionary Income of HALEEB is 95%.

Business Saving Rate:

Business Saving Rate of HALEEB is 10%.

Energy Availability & Cost:

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

Budget Deficit OR Surplus:

There is no deficit but 8% surplus of HALEEB.

Rate of risk:

For HALEEB FOODS Rate of risk is 5%.

Overall HALEEB FOODS business cycle:

BUSINES LIFE CYCLE

Introduction Growth Maturity Decline

Time

Sale

s

Implications

Opportunities Rating Threats Rating High market size Low tax rate Economic development

5 2 3

New rivals Strong competition Increasing rate of inflation.

5 3 4

P

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

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

P

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

Sociocultural forces

Scenario Workforce diversity:

In HALEEB FOODS Exists work force diversity.

Women in the workforce:

Just 15 female works but 400 male work in HALLEB office.

Environmental concerns:

About the environmental concerns of HALLEB is good health.

Work life quality:

Quality of work life is very safer & environment friendly

Lifestyle changes:

They consider quality life changes and take advantages of

accordingly so that customer can convinced as well as it plays a vital

role to attain & retain the customer.

Consumer activism:

Consumer adopts the trend of changing environment because of

modern facility as well as globalization they are aware about each

and every thing happening all around them.

Concerns about environment:

“HALEEB FOODS” do concern for environment they provide

environment friendly situation for employee as well as to customer

for the well being of country.

Implications Opportunities Rating Threats Rating

• Good quality

products • Living standard of

people is becoming good

• Increasing workforce

4 3 5

• High prices • Low awareness of

product • Trend of using

imported juices. • Low promotional

activities • Less display.

3 3 3 5 3

Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1). The probability of occurrence ranges from ‘high probability of occurrence’ (5) to ‘not likely to occur in this time horizon’ (1). For

example a rating of 5–3 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.

Political or legal forces

Scenario Taxation Laws

Juices have no tax except sales tax. But the product having more tax

is butter and cream. Labour Laws

Labour is being privileged here having all the laws.

Laws on hiring & promotions Hiring & promotion is followed by law. People with better

capabilities are privileged because they deserve it, for the betterment

of the organization. As well as a well educated & skilled

experienced person is a precious asset for the company suit should

be hired on better term & conditions and be promoted on the basis of

it capabilities.

Environmental protection Laws

They do concern for environment and contribute more and more for

the betterment of environment.

Foreign trade Regulations Foreign trade regulation does not effect the over all policy and the

working of the “HALEEB FOOD” because they do operate

nationally not internationally.

Attitudes towards foreign companies

They have no any agreement with any foreign company but if any

company will offer the business to them related / unrelated they

would think about it according to terms and conditions.

Stability of Government It does not affect the “HALEEB FIIDS”. Because government does not offer any subsidy to them. About importing the martial have no restriction imposed by government. Government does concern for the documentation bout the registration of the company. Afterwards just sales tax is paid to it. Government stability have effect in “HALEEB FOODS”


• No restriction imposed

by government

4

• Government

encourages new players

• High tax rate • Changes in Custom

duties on plump.

3 3 5

Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1). The probability of occurrence ranges from ‘high probability of occurrence’ (5) to ‘not likely to occur in this time horizon’ (1). For example a rating of 5–3 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.

Technological forces Scenario

New Products HALEEB FOODS s focusing concentric and conglomerate

diversification because in present era it is not possible for any

organization to exist in market for long run by providing just one

product. So HALEEB FOODS is diversifying according to changing

demand of customers and trends. I concentric diversification

HALEEB FOODS cheese .

Product innovation Product innovation is becoming more necessary for the organization

because of globalization people are becoming aware about the

changes being taken place around them so in order totakal the

situation HALEEB FOODS is focusing on product innovation by

introducing juices and with the passage of time HALEEB FOODS

will introduce new flavors in juices. There fore HALEEB FOODS in

future introduce guava and apricot flavors in GODD DAY juices.

Productivity improvement through automation Automation don’t matter a lot but to some extent it contribute

towards productivity and improvement. Imported pulp is filled in

machines for processing after the final form of juice it is packed in

250 and 1 liter packing.

Total spending on R&D Spending on R&D is long term investment for any organization.

HALEEB FOODS has R&D department head of R&D department is

Mr Arshad Bhati. HALEEB FOODS total spending on R&D 70

millions.

New communication technology All the modern as well as traditional ways of communication are

being adopted by HALEEB FOODS including own emails, letters,

faxes and monthly visit in different offices of HALEEB FOODS for

better communication among supplier, distributor and customers.

HALEEB FOODS has also established own web site which can be

visited any one for most recent news innovation and activities being

taken in the organization.

Current job vacancies are also available HALEEB FOODS web site.


• Technological

advancement in HALEEB’s operations as for as local operation are concerned

•

4

• Technological

advancement of “Nestle” as they are market leader & doing juice manufacturing on automated machines.

• High cost to pay for advanced machinery.

• Processing of pulp is very costly.

5 5 4


Natural environment forces Scenario Major Natural raw material

Major Natural raw materials of HALEEB FOODS are different pulp

of fruits such as mango, apple, pineapple, red grapes, orange from

Germany and France. This raw material is process in HALEEB

FOODS Bhai pharo plant not in Rahim Yar Khan plant.

The natural environment not suitable for them as for as juices are

concerns. If we talk about dairy products. The natural environment is

suitable. HALEEB FOODS is having control over the quality of dairy

products because they have to check the quality in dairy forms.

External Environment – Near Environment Market review Description Monopolistic competition prevails in market.

The juice market is fragmented. Their are competitor local as well as

international who have make competition tough.

“HALEEB FOODS” deals all the segments including demographic,

psychographic as well as behavioral.

All Juices including “GOOD DAY,TROPICO” are available all over

the Pakistan.

The product benefit to customer is its fat free for diet conscious

People.

They do in contact with customer and they are diversifying according

the requirements of customers.


♦ The concentric diversification in different juices products.

♦ There are a lot of

untapped markets in different areas of Pakistan.

4

3

3

♦ Competition with

NESTLE

♦ New entrant

♦ Diversification of

existing companies

♦ Imported tin juices are great threat for

5

3

3

4

♦ “HALEEB

FOODS” can be

market leader by

introducing new

flavors in juices

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

4

good day.


Competitive review Evaluating that how organization is competing in the market place

to take advantage of opportunities & over coming the threats in

order to take competitive advantage over the rivals.

In order to evaluate the competitive position we have to take a look

on the competitors of “HALEEB FOODS” in JUICE

CATEGORY.

Key Competitors

1. Nestle

2. Maza

3. Shezan

4. Country

5. Nurpur

6. Malee

Nestle and Shezan are the main competitor of “HALEEB

FOODS” offering pure juices. But the others are not offering the

pure juices.

Competitors including Maza Country & Nurpur are competitor in

nectar.

Nestle

It is a multinational company operating in broad range of products

but from the juices point of view “HALEEB FOODS” consider it

the competitor. Nestle has strong financial backup its requirements

to retailer, distributor are most sophisticated as compared to

“HALEEB FOODS”.

“Nestlé” is a Swiss-German word which means “Little Nest”

which is its trademark. Nestle is the worlds’ number one food

company.5th largest company of the world according to its

turnover.2 million 20 thousand people employed from all over the

world. Present in 80 countries of the globe having 500 factories.

Over 700 products renovated or innovated in the past five years,

with wellness in mind.

As the business of juices is profitable many new competitors are

entering in the market. Some existing companies are also going to

diversify and introduce the juice category as “Nurpur”has

introduced itself with dairy products but diversified to nactor.

“HALEEB FOODS” pursue the strategies of the competitor so it is

market follower not market leader.

Nestle is Pioneer in the Tetrapak premium nectar and drinks range

it has launched Nestle juices, nectars & drinks 1999.

• Heavy trial generation activities at launch

• No trial generation activities in recent years

• Low media presence print, electronic

• Heavy outdoor presence

• Strong focus on brand visibility in-store

• Focus on corporate branding at alternative channels &

institutional sales

• Focus on product & packaging innovation

– launch new variants each year

– launch portion pack

– launch portion pack in novel packaging type

– launch 1 Ltr TBA with recap/pull tab feature

Shezan • Strong local name in the juice and drinks range

– Launched Shezan Orange

– Launched Twist (nectars) 2003

• Aggressive marketing campaign print, electronic

– Shezan All Pure 2004

• No trial generation activities

• No consumer reward/loyalty CPs

• Available packaging options

– Shezan All Pure 1 Ltr TBA

– Nectars

• Twist

• Shezan nectars 1 Ltr TBA

IMPLICATIONS

Opportunities Rating Threats Rating

• People are

becoming

quality

conscious.

• Usage rate of

juices is

increasing

• “HALEEB

FOODS” can be

market leader by

making good .

• Focus on

untapped market.

4

3

3

4

• Competition with

NESTLE

• New product

advancement by

different

competitors.

• Different

strategies adopted

by competitors

Nestle in juices

products

• Competitor in

nectar have more

customer loyalty.

5

3

4

4


Distribution channels and buyers (intermediary customers) Description “HALEEB FOODS” Have distribution channels in all over the Pakistan

excluding some none developed areas. The “Nectar” juices are

available every where. But due to high price it’s juices in purity

available on superstore where upper class people shop.

For the concise detail of distributors a form is attached as appendix at

the end but the thing which was note able that “HALEEB FOODS” do

not ask for qualification of the distributor but their main concern is the

financial background and how much experience they have. A part from

these requirements they do ask infrastructure of distribution centre,

warehouse etc.

They have set performance appraisal system for its distributors. For the

sale of specific target set by “HALEEB FOODS” distributor would get

cash bonus as well as good performance certificate. It motivates

distributor to do more & more for the sale as well as well being of the

company which is ultimately his own well being.


By increasing

bonus on target

sales can

increase in

sales

By extending

their

distribution to

non developer

& distant areas

as niche

marketing

Developing

distribution

channel to

untapped areas.

Motivate

distributor to

work hard for

better results.

3

4

4

4

Strong distribution

channel of

competitor can

attract the present

distributor.

Distributor does not

follow the rules of

the company it can

be disaster for the

company.

Competitor can hire

the distributor on

better terms.

Distributor can

demand more

commission.

5

3

4

5


End-user customers Description They have segmented the market & through distributor they provide

juices to end users or intermediary. ”HALEEB FOODS” attain & retain

customers through all promotional strategies like

adds,billboards,broche,special packages on different events like

Ramadan Jashne Azadi etc. A part from all these efforts its slogan”

PURITY” is enough to attain & retain the customers.

End user mostly consume “nectar” because 70 pc people live in villages

they cannot afford costly juices & the main revenue of “HALEEB

FOODS” is generated from pure juices. So in order to remain

competitive they offer “nectar” but in order to generate revenue they

offer “Good Day”. So end user belongs to upper class as well as to low

income group & children.


♦ Product

development

on the basis of

loyal customer

♦ Health & diet

conscious

4

4

♦ End user can

shift to “Nestle”

or other

competitor.

♦ Competitor can

use “market

5

4

culture

♦ Economic

development in

Pakistan

♦ Least

competitors in

purity

3

4

penetration”

strategies to

attain its end

users.

♦ Good

promotional

tools can

convince end

user to shift to

other

competitor.

♦ Their can be

innovation

which totally

substitute the

product.

4

4


Suppliers

Description The “pulp” is most costly & basic raw material for juice. Pineapple &

red Grapes are costly. As for as supplier of “Pulp” is concern their main

supplier are in “Germany, Switzerland and some European countries”.

They can arrange pulp from Pakistan but its processing is very costly

here and sophisticated machines are not available here so they import

it.

”HALEEB FOODS” does not purchase “pulp” from Pakistan because

variety is not available here as well as its so costly & less quality.

“HALEEB FOODS” have costly supplies but in near future they are

going to introduce “Apricot & Guava but it does not think about

backward diversification because it is not just focusing on juices but

trying to diversify in other areas (“Cheese”).It also has not enough

finances to do so.

New supplier not entering in the industry so that their bargaining power

of supplier is high but bargaining power of “Haleeb Foods” is low.

Implications

Opportunities Rating Threats Rating

♦ They can

establish long

term relation

with supplier

♦ On the basis of

goods term

they can bound

then to provide

their supplies

only to them

♦ If supplier are

not reliable

they can find

out new one.

♦ They can

import modern

machinery

from abroad

instead of raw

material.

4

4

3

2

♦ Supplier can

refuse to provide

raw material to

it if made long

term contract to

competitor

♦ Supplier can

raise the prices

of raw material

♦ Custom duty on

imported

products can

high

♦ Government

may ban the raw

material

4

4

4

3


Critical success factors (CSFs) There are a lot of factors exist in the success of a company that may be the core competences of that particular company. Haleeb is the one of the best national company, which is deal in milk products and juices. There are following of the critical success factors of the Haleeb Company: Product Quality: Haleeb juices are offer in market with high quality in both pure and nectar varities. Good Day offer in pure juices, Funday and Tropico in nectar juices. Prices Competition: In cutthroat competition Haleeb offer best suitable prices, which its all type of customers can purchase. Good Day available in market with high quality with high price where as the other juices available with normal quality and reasonable prices. Financial position: Haleeb has very strong position in all financial matters due to which it is adopt diversification strategies and try to bring innovation in all products to attract the new customers and retain the existing customers. Distribution Channels: The Strong distribution channels is the one of the best core competency of the Haleeb Company.Haleeb juices available in all areas of the Pakistan and try to deliver all products according to requirements of all areas. Management: Haleeb Food Company has very educated and experienced management people who are know about their fields very well. They are

cooperative and discuss each and every thing with each other so the cross sectional discussion is very common in Haleeb food Company. Summary of Opportunities: Significance of opportunity High Low High Probability Of Occurrence Low Untapped market and Demand of juices are the high opportunity for Haleeb and probability of occurrence is also very high so Haleeb juices sales can increases if it target the all market and demand is increase in market day by day and Haleeb also increase the demand and awareness of juices in market by best advertisement. Concentric diversification is not the high opportunity but probability and occurrence is high because the Haleeb can increase sale by little change in the flavor of juices.

• Untapped market • Demand of juices

o Concentric diversification

• Backward integration

o To become multinational

Backward integration is the high opportunity foe Haleeb but probability of occurrence is low because it very difficult foe Haleeb to make its juices plump itself because Haleeb import the high quality of plump from different countries which it can’t prepare due to lack of technology. To become multinational is very difficult because Nestle is the biggest competitor of Haleeb and Nestle is already a multinational company. In Pakistan Haleeb face competition only due to nestle so it is very difficult for Haleeb to compete the Nestle at international level. Summary of threats: Significance of threat High Low High Probability Of Occurrence Low Haleeb face strong competition in market of juices, for Good day nestle juices are big threat and for other all juices like funday and tropico shahzan, Maza and country juices are big threat. Nestle is the big and strong competitor because Nestle is an international company and people mostly know about international company due to good quality.

• Strong market Competition • Nestle strong globally

• Low Switching Cost • Fluctuations in tax rate

• Imported Tin juices

o Custom duties on import of plump

There is not any huge difference in prices of different juices of the company so customer can any time select juice of different company which is threat for Haleeb Food Company. The government of Pakistan changes the policies of tax on different commodities, so fluctuation in tax rate cause increases in prices of the juices. Imported tin juices are great threat for Haleeb juices especially for Good day because Haleeb offer good day in market with high quality and tin juices also focus on quality so there are competitor for each other. Haleeb import plump of all juices from different countries Germany and France, Haleeb paid high custom duties on plump, so increase in custom duty can increase the cost of juices due to which prices of all juices increase which is not good for the company.

Situation analysis – Internal capabilities Non marketing capabilities (Financial position, management and leadership, HRM, R&D, operations-production capabilities and supply, interfuntional coordination and responsiveness and competitive position) REVIEW: Many of the non marketing capabilities are strengths of the Haleeb food company due to which they are very successful at national level in many products especially in milk and its related products. R&D of Haleeb is very aggressive due to which new flavors of juices comes one after an other. Financial position is very strong all on all equity .The HRM is not working up to the mark. The interfunctional coordination is very strong and the management team is very cooperative. IMPLICATIONS Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1). The probability of occurrence ranges from ‘high probability of occurrence’ (5) to ‘not likely to occur in this time horizon’ (1). For example a rating of 5–3 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.

Strengths Rating Weakness Rating Financial Position 4 HRM 3 R&D 3 Interfunctional Competitive position Coordination 3 in juices 2 Management 5 Production capability 3

Marketing capabilities – Management (Marketing organization, market intelligence, market planning and market control process) REVIEW Marketing department of the Haleeb food Company specially in juices is sufficient but not up to the requirement because for juices advertisement and promotional campaigns are conduct in different areas of Pakistan but in not all areas of Pakistan but marketing organization of Haleeb food is working well and market intelligence and marketing planning is very strong aspect of management of marketing. IMPLICATIONS Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1). The probability of occurrence ranges from ‘high probability of occurrence’ (5) to ‘not likely to occur in this time horizon’ (1). For example a rating of 5–3 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.

Strengths Rating Weakness RatingMarket intelligence 4 Market control process 3 Market organization 3 Promotional campaigns 3 in juices Organization positioning 3 Market planning 4

Problem and opportunities statement: 1. The business unit’s capabilities in relation to critical success factors CSF Our capabilities

• Product Quality : Production capability and TQM • Management : Qualified and experienced work force • Loyalty to organization : Internal organization culture very strong • Financial stability : Smooth cash flow based on equity

financing

2. Opportunities for the business unit to exploit with existing capabilities

Target untapped market with strong distribution Satisfied demand by increasing production. Introducing the flavors of juices with the help of R&D and utilizing production capacity

3. Opportunities for the business unit to exploit with improved

capabilities

Backward integration can be successfully achieved by improving technology and financial condition.

By improving in all fields Haleeb can become the market leader in all products.

Increasing sales by improving marketing campaigns 4. Threats which are addressed.

Strong market competition ,Haleeb facing, in pure juices due to Nestle and nectars juices due to local companies like Shahzan,Maza and country.

MARKETING OBJECTIVES AND HIGHER-LEVEL MARKETING STRATEGIES Marketing objectives Year 1 Year 2 Year 3

Revenue Objectives

45% of sale 45% of sale (every year increment)

45% of sale (every year increment)

Gross profit margin

8-10 %

8-10 %

8-10%

Segment 1

Segment 2

Segment 3

Existing products in existing markets (Market penetration) Existing products in new markets (Market development) New products in existing markets (NPD) New products in new market segments (Related diversification)

Good day (pure) ______________ Remote areas in each province. ______________ Red blood Keno, Guava, lechee flavors ______________ Red blood Keno, Guava, lechee flavors ______________

Fun day (Nectar) ______________ Remote areas in each province. ______________ Guava and lechee flavors ______________ leeche ______________

Tropico (drink) ______________ Remote areas in each province. ______________ leeche ______________ leeche ______________

Product-market strategies

Rationale: The rationale behind this document is to determine a clear direction for company and to define clear future objectives for the company. So as to device policies and to methods to achieve these objectives. These projections will also help the company to prepare budgets and allocation of resources to specific objectives.

Market segment 1 Market segment 2 Market segment 3

Segment description Young diet conscious ladies and old age health conscious people having income above 50,000 per month. The posh areas of each city of distribution are targeted.

Segment description All age people having good taste for quality products. Middle class having 20,000 to 30,000 income per month. All medium(middle class) and large markets are targeted.

Segment description Lower middle class people, school/college canteens, park and other public places are targeted in each city of distribution.

Products/brands serving this segment Pure juices of apple, orange, pineapple, mango, red grapes.

Products/brands serving this segment Nectars (40% pulp) of apple, mango, orange and mix fruit.

Products/brands serving this segment Regular drinks in the flavors of apple, mango, orange and mix fruit.

Product/Brand positioning These juices are positioned among its users are as: “ Pure, healthy, hygienic and energizing juices for health conscious people".

Brand positioning Good quality and good taste juices for all occasions.

Brand positioning Fruity flavored drinks readily available everywhere.

Product strategy Class “A” juices available in both regular 250 ml pack individual pack as well as family pack1000 ml Pack in hygienic six layered tetra pack packaging with brand name as well as company logo printed on it. Available in apple, orange, pineapple, mango, red grape flavors.

Product strategy Good taste and good quality nectars available in 200ml pack, packed in 6 layered tetra pack hygienic packaging with brand name as well as company logo printed on it . Available in apple, mango, orange and mix fruit flavors

Product strategy Regular sized drinks available in 250 ml individual packing and 1000ml family pack. Enclosed in 6 layered tetra pack hygienic packaging with brand name as well as company logo printed on it . Available in apple, mango and mix fruit flavors.

Pricing strategy High prices are set for these juices. Market skimming strategies are followed and prices are almost equal to market leader Nestle.

Pricing strategy High prices are set for these juices. Market skimming strategies are followed and prices are almost equal to market leader Nestle.

Pricing strategy Low prices are set for these juices . Market penetration Strategies are set for the pricing of these juices.

Distribution strategy Distributed to high-class super stores in posh areas of each city. Placed on prominent places on the shelves of the store.

Distribution strategy Distributed to high-class super stores in posh areas of each city. Placed on prominent places on the shelves of the store.

Distribution strategy Distributed to each and every possible market throughout the country.

IMC strategy* T.V adds, signboards, holdings, personal selling, sales promotion, in-store activities.

IMC strategy* T.V adds, signboards, holdings, personal selling, sales promotion, in-store activities.

IMC strategy* Advertisement on television.

Marketing mix strategies for segment Segment description

Segment : I

Category: A+

1. Income:

People having income 50,000 and above are included in the target market.

2. Age:

Youth an old age people are taken as the most important targets in case of Good Day pure juices.

3. Gender:

Females in emphasis, while males also are considered as a part of target market.

4. Family size:

All family sizes either small or large, either single or married all are included in its target segment.

5. Life-cycle stage:

That life cycle stage is given more importance which includes more young people either males or females.

6. Geographic Location:

A class superstores and grocery stores in the high traffic markets in posh areas of all the cities of distribution throughout the Pakistan.

7. Life Style:

Good Day pure juices are highly meant for sophisticated, diet and weight conscious, health conscious, smart and self-conscious people who give a great importance to hygienic food.


These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and don’t include sugar and artificial flavors so patients of different diseases including diabetes may also use these juices.

9. Prior experience:

It is an important variable as far as any eatable product is concerned. Because if any customer who has already tested theses juices and has gained its nutritional benefits and had enjoyed its good taste odor then he/she will surely be attracted towards its reuse.

10. Purchase behavior:

In the case of Good Day juices the size of purchase is not very small because they are the part of breakfast which is taken daily and are used after exercise so are the part of routine and the brand loyal customers will purchase it on consistent basis.

Products/brands servicing this segment

Products offered in this segment include : Product name: “Good Day” A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. For consumption absolutely anywhere and anytime, Good Days six premium juices (apple, pineapple, red grape, mango, orange, and mixed fruit) give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging. They are offer in tow sizes:

• 250 ml Pack: 27 Packs/Cartons • 1000 ml Pack: 12 Packs/Carton

Product/brand positioning These juices are positioned among its users are as: “ Pure, healthy, hygienic and energizing juices for health conscious people".

Proposed marketing mix strategies Marketing Mix The marketing mix is the set of controllable tactical marketing tools, product, price place and promotion that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. The 4 P’s of marketing mix are:

• Product • Price • Place • Promotion

Product Price Variety List

price Quality

Discounts Feature Payment

period Brand name Packaging Targeted Customers Intended positioning Promotion

Place Advertising

Channel Personal selling

Coverage Sales promotion

Locations Public relations

Inventory Transportations

Marketing mix strategies means the ways to strategically handle the important issues like product or product line management, devising pricing strategies, successful distribution of the products at their destination locations and the way to communicate with people to create awareness in them about the products that makes them ready to purchase the products. PRODUCT

Product means the goods and services combination the company offer to the targeted market and customers. Products include physical objects, services, events, persons, places, organization, ideas, or mixes of these entities.

Product/brand positioning It is positioned among its customers as nutritious, energizing and tasteful drink. That is specially made for smart, healthy and energetic people.

Proposed marketing mix strategies

Product Strategies Product strategies are designed in a sequential manner as : Product attributes Branding Packaging Labeling Product support services ( in case of services) Product attributes

a) Ingredients:

In case of all pure juices the ingredients contain 100% pure pulp of that fruit Other ingredients include: Sodium 0 0% Carbohydrate 33gm 11% Protein 1 gm 2% Vitamin C 24mg/100ml 100% The above pattern is followed in case of all pure juices with slight variation.

b) Quality:

Major feature is the quality. According to HALEEB quality is that:

“Our customers comeback and not the product”. Its other features include:

• Rich color • Fresh taste and smell. • Long expiry date.

c) Branding:

The name of Haleeb and its insignia (-------) are printed on its pack. Besides this the pictures of the specific fruit in attractive color are also printed on its pack.

d) Packaging:

A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container.

e) Labeling:

Other labeling printed on the pack includes ingredients, expiry date, price and batch number.

Pricing strategies In case of good day juices, the prices are quoted on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Psychological pricing For Good day juices the psychological pricing is also used, i-e high prices are quoted , which reflect product positioning, as “ high price for high quality”. Price Structure: (consumer price)

250ml 15 Rs. 1000 ml 56 Rs. (mango and orange) 1000ml 75 Rs. (Pinapple and red grapes) As they are market followers, they respond to the price strategy of market leader (Nestle) in following manner: Hold current price; Has competitor continue to monitor cut prices competitor’s price. Yes Will lower price Negatively affect our Market share & profits? Reduce price Yes Raise perceived Can/should effective No quality Action be taken? Improve quality And increase price Launch low-price “Fighting brand” Place/Distribution Strategies

• This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributor’s storage place which should be neat, clean and up to the mark, his motor vehicle etc.

• Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered.

• Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers.

• Good day juices are distributed to all the “A” class superstores of high traffic markets of posh areas. For example in case of Lahore the areas of high availability are Model Town, Liberty, Anarkali, Pace, etc.

Multi Channel Distribution System They use a multi channel distribution system, which means that “A distribution system in which a single firm sets up two or more marketing channels to reach one or more customers. It works in following manner: Telephone, Internet Customer segment 1 Retailer Customer segment 2 Producer Distributors Dealers Customer segment 1 Sales force Customer segment 2 Above figure explains that the company may sell its products directly to customer segment 1 and at the same time they can also reach this segment through retailers and whole sellers. While the company may reach the segment 2 directly through their sales force via personal selling. And at the same time they can reach this segment through a complex system of distributors and dealers. Promotional Strategies

Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Good day juices following promotional strategies are used:

1. Advertisement

Television adds are used. In addition to this adds on newspapers and magazines are also published. Other advertisement tools include holdings and sign boards.

2. Personal selling

When HALEEB introduces any new flavor of Good day, the highly emphasize personal selling as it develops a interaction between user, product and company representative. The sales force records the reaction of the consumers towards the product that further helps the company to estimate and foresee the acceptability of product among the customers.

3. Sales Promotion through in-store activities

The introduction of a new product is also facilitated through in-store activities which means that company representatives are present in the store and they interact with each customer entering in the store they offer them to taste the free samples of the product and also offer some discounts and free samples.

4. Sales promotion for retailers, whole sellers and distributors. While introducing new flavors of Good Day juices, special discounts and free samples are offered to distributors based on the quantity of bulk purchase.

Segment description (Segment II) Category: B+

1. Income:

People having income Rs. 25,000-30,000 per month are included in this segment. 2. Age:

All age groups are considered such as: children, youth and old age. 3. Gender:

Both genders i-e male and female are included in its target consumers. 4. Family size:

Each family size is considered. 5. Family Life-cycle stage:

Every stage of the life-cycle is considered. 6. Geographic location:

High-class as well as middle super stores in high traffic markets of both posh areas as well as middle class towns and colonies of big cities throughout the Pakistan are targeted.

7. Life style: These “Nectars” are offered to that class of society that are sophisticated, quality conscious but cannot afford as much high prices as of Good Day. Its hygienic packaging also attracts health conscious people.

8. Use situation/occasion: These juices are not specially meant for special occasions like breakfast etc but people may use them as a part of their meal. Fun Day Nectars represent good quality and good taste drinks for any occasion.

9. Prior experience: Previous usage of these drinks will motivate its consumer for repurchase due to its quality and taste.

10. Purchase behavior: As far as the sale frequency of these juices is concerned, it lies in moderate range. Because it is not occasion specific, People may or may not use it on consistent basis. Here most important matter is the brand loyalty. Its frequent use is expected mostly from the brand loyal people.

Products/brands servicing this segment Products offered to this segment are: Product Name: “Fun Day”

Nectars in following flavors: Haleeb Funday is a delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Funday juices will surely be an instant success with kids with their unique and amusing names, Aamonka (mango) and Arrochee (peach and lychee). Size: Fun day is offered in tow different sizes :

• 200ml Pack: 36 Packs /Carton Shrink wrap units • 200ml Pack: 27 Packs/Carton

Product/brand positioning It is positioned among its consumers as a “good in taste drink”.

Proposed marketing mix strategies Product Strategies Product strategies are designed in a sequential manner as : Product attributes Branding Packaging Labeling Product support services ( in case of services) Product attributes

a. Ingredients:

In case of nectars 40% pulp of any specified fruit is added in case of each fruit, While other 60% are the artificial flavors. Fruit pulp, sugar, citric acid, Permitted food stabilizer (E-466), Preservatives: (E- 211), Color: (E-110).

b. Quality:

It is also good in quality because the pulp portion as well as the artificial flavor portion both are high quality, harmless and good in taste and smell.

c. Its other features like Good Day, include:

• Rich color • Fresh taste and smell. • Long expiry date.

d. Branding:


e. Packaging A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container.

f. Labeling


Pricing strategies In case of good day juices, the prices are quoted on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Its prices are set following the prices of the competitor’s prices for same product. This is due to the reason that HALEEB claims that the quality of their product is similar to that of market leader which is Nestle. Consumer price: 200 ml: 10 Rs. Tropico 200ml : 10 Place/Distribution Strategies

• This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributor’s storage place which should be neat, clean

and up to the mark, his motor vehicle etc. • Proper planning by following demand and supply rule carries out

distribution. Also the distribution strategy of the competitors is considered.

• Inventory level of juices in the godowns of the distributors is always

kept more than demand so as to fulfill the demand of potential customers.

• Fun day juices are distributed to all the high class as well as middle

class superstores of high traffic markets in all the areas of distribution throughout the country. For example in case of Lahore the areas of high availability are Allama Iqbal town, etc.

Promotional Strategies Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Good day juices following promotional strategies are used: 1. Advertisement

Television adds are used. In addition to this adds on newspapers and magazines are also published. Other advertisement tools include holdings and sign boards.

4. Personal selling

To launch any new flavor of Fun Day personal selling is considered only at few places. 3. Sales Promotion through in-store activities

In case of Fun Day sales promotion through in-store activity is not conducted.

4. Discounts for whole sellers and free samples for distributors

Another way of sales promotion adopted to introduce new flavors is to give discounts to retailers and to give free samples to distributors. Incase of retailers discounts are based upon frequent and bulk purchases.

Segment description (Segment III) Category: B

4. Income: People having low income level and the children who are not earning hand and are dependent on pocket money are included in this segment.

5. Age: School going children and college students are given high importance while people of all other age groups are considered as target groups.

6. Gender:

Both genders i-e male and female are included in its target

consumers.. 7. Geographic location:

Through out the Pakistan in both privileged and un-privileged areas.


These are the simple drinks, which are used in school/college canteens, parks, small shops at roadsides, bus stops and on small and large general stores in streets etc. Frequency of purchase It is most frequently purchased drink among all other HALEEB juices. About 800.000 units are sold daily. All

other segmentation variables like family size, family life cycle stage, life style etc are not considered in this segment.

Products/brands servicing this segment Products offered to this segment are: Product name: “Tropico” With the quality assurance of Haleeb Foods, Tropico is the premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavors: apple, mango, and mix fruit Size:

• 1000ml Pack: 12 Packs/Carton • 250 ml pack: 36 packs/carton • 250ml Pack: 27 Packs/Cartons

Product/brand positioning It is positioned among its consumers as “readily available drink”. Proposed marketing mix strategies Product Strategies Product strategies are designed in a sequential manner as : Product attributes Branding Packaging

Labeling Product support services Product attributes Ingredients: Fruit pulp, sugar, citric acid, Permitted food stabilizer (E-466), Preservatives: (E- 211), Color: (E-110).

a. Quality: The artificial flavors used in these drinks are of good quality.

b. Branding:


c. Packaging

A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container.

d. Labeling


Pricing strategies “Bottom” or “Lowest prices” are set for these drinks, And penetration strategies are implemented in this segment.

Price structure Consumer price ; 200 ml :8 Rs. Place/Distribution Strategies

• This product is distributed through authorized distributors, who are

selected on a tough criteria, i-e qualification, previous experience of the same field, distributor’s storage place which should be neat, clean and up to the mark, his motor vehicle etc.

• Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered.

• Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers.

• Tropico drink is distributed to all possible location throughout the country.

Promotional Strategies Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Tropico drinks following promotional strategies are used: 1. Advertisement In case of Tropico drinks only television adds and the adds on newspapers and magazines are used as promotional tool.

SWOT Analysis Strengths: • Haleeb Foods is the largest National Food Company. • Strong brand loyalty of customers of Haleeb company. • Haleeb Company has monopoly situation in different flavors of pure

juices. • Haleeb foods have best distribution channel in all over the Pakistan. • Haleeb offer high quality products especially pure juices in market. • Management team of Haleeb Company is very strong and educated. • Haleeb foods have strong positioning in customer mind. Weakness: • Less product awareness in customer mind. • Packaging of juices product is not good, and not so much attractive. • Haleeb company has very high prices in pure juices like apple, pineapple,

mix fruit, red grapes mango flavor. • Haleeb Company conducts less promotional activities for its juice

products. • Less display centers use for juices products in main shops of different

cities. • Haleeb Foods Company has late recovery of claims. Opportunities: • There are a lot of untapped markets in different areas of Pakistan. • The concentric diversification in different juices products. • Backward integration can use in juice products of Haleeb Company. • Haleeb Foods Company can become multinational and can target

different market of different countries.

Threats: • There is strong competition in food products market. • Different strategies adopted by competitors Nestle in juices products • New product advancement by different competitors. • Government policy changes and fluctuation in tax rates on food items. • Imported tin juices are great threat for good day. • Changes in Custom duties on plump. Internal factors evaluation (IFE)

Haleeb Foods Company Weight Rating Weighted Internal Factors Score

STRENGTHS • Largest National food company 0.05 4 0.2 • Strong brand loyalty 0.10 4 0.4 • Monopoly situation in pure juices 0.15 3 0.45 • Product positioning 0.05 2 0.1 • Strong distribution channel 0.10 4 0.4 • High quality products 0.10 3 0.3 • Strong management team 0.05 3 0.15

WEAKNESS • Product awareness in customer mind 0.05 3 0.15 • Not good packaging 0.10 2 0.2 • Higher prices in pure juices 0.05 3 0.15 • Low promotion activities 0.10 4 0.4 • Less display centers 0.05 3 0.15 • Late recovery of claims 0.05 2 0.1 Total weighted Score 1.00 3.15

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

External factors evaluation (EFE)

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

Haleeb Foods Company Weight Rating Weighted External Factors Score

OPPORTUNITIES • Untapped market 0.20 4 0.8 • Diversification in products 0.10 3 0.3 • Backward integration 0.15 3 0.45 • International markets 0.05 2 0.1 THREATS • High market competition 0.10 3 0.3 • Strong competitor Nestle in juices 0.15 4 0.6 • Products advancement 0.05 3 0.15 • Fluctuation in tax rates 0.05 2 0.1 • Imported juices 0.05 2 0.1 • Custom duties on plump 0.10 2 0.2

TOTAL 1.00 3.1

CPM (Competitive profile matrix)

Haleeb Nestle Shahzan

In the CPM the industry average take as 3.50, so the Nestle performing is the best as compared to their competitors in juices. Haleeb lunched its juices two years ago but their performance is good and it is in second number in field of juices due to their pure and nectar juices with high quality and reasonable prices. Shahzan only deal in nectar juices and target the lower income group of people and it all sale is due to customer loyalty.

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

STRENTHS(S)

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

• Haleeb Foods is the largest National Food Company.

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

• Haleeb foods have strong positioning in customer mind.

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

WEAKNESS(W)

• Packaging of juices product is not good, and not so much attractive.

• Haleeb company has very high prices in pure juices.

• Less promotional activities for its juice products.

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

• Less product awareness in customer mind.

OPPERTUNITIES(O)

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

• The concentric diversification in different juices products.

• Backward integration can use in juice products

• It can become multinational and can target different market of different countries.

• Usage rate of juices is

increasing

SO strategies.

• Market development

(S1,O1)

• Product development

(S4,O5)

WO strategies.

• Extensive marketing

campaign.

(W1,O1)

THREATS(T)

• There is strong competition in food products market.

• Different strategies adopted by competitors Nestle in juices products

• New product advancement by different competitors.

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

• Imported tin juices are great threat for good day.

ST strategies.

• Positioning as quality

product among

consumer.(S1,T1)

• Acquiring the local

competitors(S5,T3)

WT strategies.

• Increase budget on

packaging &

promotional activities

(W1,T1)

Quantitative Strategic Planning Matrix

(QSPM)

Haleeb Food Company Weight Product development Market development Factor analysis AS TAS AS TAS USTRENGTH U • Largest National Food Company 0.05 4 0.20 4 0.20 • Strong brand loyalty 0.10 4 0.40 3 0.30 • Monopoly situation in pure 0.15 2 0.30 3 0.45

juices • Product positioning 0.05 4 0.20 2 0.10 • Strong distribution channel 0.10 4 0.40 3 0.30 • High quality products 0.10 4 0.40 4 0.40 • Strong management team 0.05 3 0.15 4 0.20 WEAKNESS • Product awareness in customer 0.05 3 0.15 2 0.10

mind • Not good packaging 0.10 - - - - • Higher prices in pure juices 0.05 2 0.10 2 0.10 • Low promotion activities 0.10 4 0.40 4 0.40 • Less display centers 0.05 3 0.15 2 0.10 • Late recovery of claims 0.05 - - - -

OPPORTUNITIES • Untapped market 0.20 2 0.40 4 0.80 • Diversification in products 0.10 - - - - • Backward integration 0.15 3 0.45 4 0.60 • International markets 0.05 1 0.05 4 0.20

THREATS • High market competition 0.10 3 0.30 3 0.30 • Strong competitor Nestle in

juices 0.15 4 0.60 4 0.60 • Products advancement 0.05 3 0.15 4 0.20 • Fluctuation in tax rates 0.05 - - - - • Imported juices 0.05 4 0.20 3 0.15 • Custom duties on plump 0.10 - - - - Total 5 5.5

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

FINANCIAL HIGHLIGHTS (RS,000) Trading Results

2005 2004

Sales-net Gross Profit Operating Profit Profit Before Tax Profit After Tax

7,086,175 1,090,860 544,711 486,114 345,697

5,941,780 870,368 417,773 380,673 232,888

Balance Sheet

Shareholders’ Funds Reserves Operating Fixed Assets Net Working Capital Current Assets

1,060,133 275,000

1,071,235 46,189 711,306

755,620 275,000 926,645 (59,748) 561,179

FINANCIAL ANALYSIS

2005 2004

Sales Growth % 19.26 26.57 Gross Profit Margin % 15.39 14.65 Operating Profit Ratio % 7.69 7.03 Profit Before Tax % 6.86 6.41 Profit After Tax % 4.88 3.92 Pretax Profit Growth % 27.70 23.00 Net Profit Growth % 48.44 21.35 *Current Ratio 1.07 0.90 Fixed Assets Tunover Times 6.61 6.41 Return On Equity % 32.61 30.82 Return On Total Assets % 15.73 14.03 * while calculating Net Working Capital and Current Ratio , Current portion of liabilities against assets subject to finance lease is not accounted for.

Product Life Cycle


Time

Sale

s

GOOD DAYFUN DAYTROPICO

BRAND POSITIONING MAP

LowQuality

HighQuality

Expensive

Inexpensive

TROPICOFUN DAY

GOOD DAY

GII

GIIGIII

GI

BCG MATRIX OF HALLEB

20

0.00

-20

0.00.501.00

TROPICO

GOOD DAY FUN DAY

IE MATRIX OF HALEEB

TOTALEFE

WEIGHTEDSCORES

TOTAL IFE WEIGHTED SCORES

4.0

2.0

3.0

3.0 2.0 1.0

1.0

Strong3.0 to 4.0

Weak1.0 to 1.99

Average2.0 to 2.99

Low1.0 to 1.99

Medium2.0 to 2.99

High3.0 to 4.0

HALEEB

Strong Competitive

Position

WeakCompetitive

Position

Rapid Market Growth

Low Market Growth

Quadrant 1Quadrant 2

Quadrant 3 Quadrant 4

•Market development

•Product development

GRAND STRATEGY MATRIX OF HALEEB

RATINGSINDUSTRY STRENGTH

Total

RATINGSFINANCIAL STRENGTH

Total

Working capitalCash flowsLiquidityRisk involve in businessReturn on investment

5.03.04.02.04.0

18 .0

Financial stabilityCapacity utilizationResources utilizationEase of entry into marketGrowth potential

3.05.05.03.05.0

21.0

SPACE MATRIX OF HALEEB

RATINGSENVIRONMENTAL STABILITY

RATINSCOMPETITIVE ADVANTAGE

Rate of inflation Technological changesDemand variabilityCompetitive pressureBarriers to entry into market

-3.0-5.0-5.0-3.0-5.0-21.0Total

Product life cycleMarket shareProduct qualityTechnological know howControl over supplier & distributorTotal

-2.0-3.0-1.0-2.0-1.0

-9.0

ES Average is = -14.0 / 5 = -2.8 FS Average is = 18.0 / 5 = 3.6 CA Average is= -9.0 /5 = -1.8IS Average is = 21.0 / 5 = 4.2

• Directional X-axis: 4.20 + (-1.8) = 2.4• Directional Y-axis : 3.6 + (-2.8) = 0.8

CONCLUSION

80

FS+6

+1

+5+4+3

+2

-6-5

-4

-3-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

ES

CA IS

Conservative Aggressive

Defensive Competitive

(2.4, 0.8)

Aggressive

SPACE MATRIX

Buyers’ Perceptions of Value

PerceivedValue

Perceived Price

Superior Value Zone

Inferior Value Zone

Good day

Fun dayTropico

MARKET SIZE ESTIMATION

UnrealizedPotential

CompanySales

Forecast

IndustrySales

Forecast

Market PotentialEstimate

Product-Market Forecast Relationships(area denotes sales in $’s)

0100200300400500600700800900

Sales (in 1000sof units)

2001 2002 2003 2004 2005 2006 2007 2008

MarketPotential

Sales Forecast

Company XYZSales Forecast

Product-Market Forecast Relationships for Industrial Painting Units

40

35

30

25

20

15

10 60 70 80 90 100 110

Sales

$ m

illio

ns

Number of salespeople

Sellingexpense

Gross profitcontribution

Current level

Maximum profitcontribution level

Sales Force Size

Segment Attractiveness and Internal Compatibility

Internal Compatibility

Market SegmentAttractiveness

High Low

High

Low

Attractive segmentsthat match with

companycapabilities

Attractive segmentsbut with poor match

with companycapabilities

Unattractive segmentsthat do not match withcompany capabilities

Unattractive segmentsbut with match to

companycapabilities

GOOD DAY

TROPICOFUN DAY

Segment Financial and Market Attractiveness

Estimated(Rs million)

Segment

GOOD DAY TROPICO FUNDAY Sales1 2 5 3

Variable costs 2 5 8 6

Contribution margin 3 10 7

Market share 3 18 22 11

Total segment sales 2% 5% 1%

Segment position :

Business strength High Medium Low

Attractiveness Medium Medium Medium

1. For a 2 year period.2. Percent of total sales in the segme..3. Based upon a five-year projection.

BUSINES LIFE CYCLE


Time

Sale

s

Porter’s five Model

1) Threats of new entrants: There are following barriers of entry for new entrant foe juices in market.

· Accesses to distribution channels are vary high form all companies exist in market.

· High capital requirement for new company to enter in market due to high competition

· Product differentiation is good feature from all companies which is also a barrier for new comers.

2) Bargaining Power of supplier: Suppliers of the raw material of juices specially of Plump of fruits are powerful in following points: · They are dominated because they are few numbers. · Their product is very important input of Haleeb juices.

· Supplier product has high switching cost for Haleeb Food Company. · Supplier of Haleeb juices plump has no substitude 3) Bargaining Power of buyer: There are in following point Haleeb food company is strong

Haleeb present the threat to supplier of backward integration. Haleeb food purchase plump of different juices from different

companies so Haleeb purchases are more as compare to one supplier.

4)Threats of substitude products: There is only one threat for juices of Haleeb in substitude products that is cold drinks in form of Pepsi and coca cola

Framework for Market Sensing of HALEEB juices

Probability of the Event Occurring

Effect of theEvent on theCompany*

High Low

Utopia

Medium

1

2

3

4

5

6

7

1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal

Field ofDreams

Things towatch

Danger FutureRisks

GOOD DAY

Market Targeting Impact Positioning Impact

Impacts of Changes in Business Strategy Restructuring on Targeting and Positioning Strategies on HALEEB Juices

Changes in Business Strategy

Rapid Growth/ Retrenchment

Market scope may not change although targets may be increased or reduced.

Substantial changes in resource allocation, (e.g. advertising expenditures

Changing the Product Mix No change is necessary unless increase in product scope creates opportunities in new segments.

Changes in product strategy, methods of distribution, and promotional strategies may be necessary.

Changing the Market Scope

Targeting is likely to change to include new targets.

Positioning strategy must be developed for each new target.

Repositioning Should not have a major effect on targeting strategy.

Product, distribution, price, and promotion strategies may be affected.

Value Chain Integration Should have no effect on targeting strategy.

Primary impact on channel, pricing and promotion strategies.

Diversification Targeting strategies must be selected in new business areas.

Positioning strategies must be developed (or acquired for the new business areas.

Strategic Alliance Targeting strategy may be affected based on the nature and scope of the alliance.

Operating relationships and assignment or responsibilities must be established.

Market Targeting Alternatives

SelectiveTargeting

ExtensiveTargeting

Segments Clearly Defined

Differentiated But SegmentsNot Clearly Defined

TargetSelected

Niche

TargetMultipleSegments

ProductVariety

ProductSpecialization

Trade Budget For 2006 (RS,000) Product Name JUL- DEC JAN - JUN JUL- JUN Good day pure juices sales 35,908 54,214 90,122 Trade 1,400 1,600 3,000 % age 3.90% 2.95% 3.33% Product Name JUL- DEC JAN - JUN JUL- JUN Funday sales 5,203 9,455 14,658 Trade 300 500 800 % age 5.77% 5.29% 5.46% Product Name JUL- DEC JAN - JUN JUL- JUN Tropico sales 52,792 61,975 114,767 Trade 5,700 6,510 12,210 % age 10.80% 10.50% 10.64% PROMOTIONAL BUDGET Product Name TV.Advertisment Trade incentive BTL(holdings) Promotions Good Day 20 million 5 million 5 million 6 million Tropico 0 8 million 3 million 8 million Fun Day 0 2 million 1 million 2 million

SALES FORECASTING Total population of Pakistan = 162419946 Target people having age 5-above People having age above 5 = 90 % of 162419946 = 146177951.4 People who like other juices and drinks = 75 % of 162419946 = 109633463.6 People who willing to drink Haleeb juices = 36544489 Price range = 10 + 25 + 65 Average price = Rs.33 Avg Quantity = 2 Sales = 33 * 2 * 36544489 = Rs.2411936274 PROJECTED INCOME STATEMENT Rs Sales = 2411936274 Cost of goods sold = 2098360250 Gross profit = 313576024 Administration Expenses = (34691250) Distribution cost = (81477000) Operating profit = 197407774 Other income = 2591400 Profit before interest and taxes = 199999174

Tax = 49145950 Net profit = 150853224 From all the above data we find out that there is a lot of demand for Haleeb juices but they are spending low as per requirement . As far as promotional activities are concerned they have introduced many product as concentric and conglomerate diversification but when we talk about Haleeb to a common person he knows that they are offereing just milk at market place , he does not know that they have introduced other products like juices , ghee, rita , powder milk etc. So in order to remain competitive at market place they have to focus extensive marketing campaigns so that they can capture potential customer. In order to attain and retain the existing customer they have to offer discounts , occasional offers etc.

A. ACTIVITIES TO BE IMPLEMENTED

• Sales representatives target all the untapped markets and niches, by using current products. • Revenue objectivity should be given high attention , and it should

increase by 45% every year (for the next 3 years.)

Activities

to be implemented

How implementatio

n

Responsibility for

implementatio

Time and location of

implementation

• Product line should be extended by adding new flavors of juices. • Related and unrelated diversification in the form of eatables ,

made up of fruit extracts and food pulp. • Role of R&D should be increased to help

a) target markets most effectively b) to get knowledge about consumer’s table and preferences.

• More budget and resources should be allocated to advertisement and sales promotion.

B. HOW IMPLEMENTATION TO BE DONE

Develop desirable skills in the employees who are assigned the basics of target implemented these skills may include. • The ability of sales force, personnel in finance department ,expert

in R&D etc , should first understand , the nature of the tasks or task’s importance fot the company.

• To increase the ability to put right people on right jobs .i.e the person of finance dept. should not be given the tasks of R&D , which is highly sensitive and innovational field.

• C. RESPONSIBILITIES FOR IMPLEMENTATION

• Create the effectiveness of the personnel to focus on critical

aspects of their job. Other remedies to enhance implementation includes

1. Organizational Design Organizational design should consist of multifunctional teams, including at least 1 member of each department to solve the problem or to achieve the targets. 2. Incentives Various rewards may help achieve successful implementation. For Example in case of Haleeb juices, bonuses or commission should be given to members of sales force/personal selling teams who sales more units of juice packets. 3. Communication

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

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

For evaluation and control HALEEB conducts a comprehensive audit of all the depts. By comparing the current results to that of company objectives

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

15-17

Strategic Marketing Evaluationand Control

Conduct strategicmarketing audit

Select performancecriteria, measures, and metrics

Obtain andanalyze information

Assess performanceand take necessaryaction

APPENDIX 1:

WORKSHEET FOR DEVELOPING MARKETING OBJECTIVES AND HIGHER-LEVEL MARKETING STRATEGIES: STRATEGIC GAP ANALYSIS:

AT END OF PLANNING PERIODS

Year 1 Year 2 Year 3 Corporate revenue objectives 3002014$ 3062054$ 3123295$ Projected revenue from current strategies: 85594$ 87306$ 89052$ Revenue Gap: 2916420$ 2974748$ 3034243$ COMPETITIVE POSITION MARKETING OBJECTIVES

PRODUCT LIFE CYCLE:

Products have reached the growth stage.

Maturity stage

As Haleeb products have reached the

growth stage it has to work even harder to maintain its present position in the market. They must focus on customers demands that:

o What actually customers want? o How customers would be satisfied?

Haleeb is now thrilling towards

the maturity stage and when it would reach at the maturity stage there is a need to become more customer centered and move towards innovations so that it don’t plunge in the decline

category.

BUSINESS LIFE CYCLE:

GROWTH Haleeb Foods is presently on the growth in the business life cycle. Now it should focus on the more customer centred approach and should introduce more innovative and up-to-date products so that it could retain more and more customers.

Haleeb’s retail division is on star and it needs more investment to maintain the present position in the market.

SUMMARY OF CURRENT COMPETITIVE POSITION:

DESCRIBE OUR CURRENT COMPETITIVE POSITION

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

59%

40%

18.30%4.17%

12.50%

50%

0%

10%

20%

30%

40%

50%

60%

WHAT SHOULD OUR COMPETITIVE POSITION BE IN 3 YEARS TIME? In the next three years Haleeb competitive position should be stronger, company seems to have more quality features and better products. There will be more improvement in current products but company is also willing to enter in some new projects. They should go for more innovations and fashionable products must be introduced in ladies.They must increase their relative market share with aggressive sales and promotion. More advertising campaigns should be made to augment it in the coming three years.

WHAT ARE THE STRATEGIC IMPLICATIONS – IN TERMS OF OUR EXISTING AND POTENTIAL NEW PRODUCTS AND MARKETS? THAT IS, HOW WILL WE GROW THE BUSINESS?

o Haleeb should introduce more innovative products in the market to increase its demand. Those innovations must be according to the customer’s demands and their preferences.

o Whenever Bata open its new distribution centre Servis take advantage from its strategies and open a store in front of their store, Haleeb should take steps to overcome this threat.

o Bata should gain the sustainable competitive advantage.

o Most of Bata’s wholesales were in the northern areas, when earth quake came it suddenly fall down. Bata should wind up wholesale from northern areas and should shift it towards the cities of Rawalpindi, Lahore and Hyderabad because more footwear units are located in these cities.

ESTIMATED REVENUE FROM EXISTING PRODUCTS IN EXISTING MARKETS (MARKET PENETRATION)

Market size (Value): Current size: $ 16 million Market projections Year 1 Year 2 Year 3 $ 18000000 $21000000 $23000000 Current market share: Projected market share Year 1 Year 2 Year 3 (Via new strategies) 65% 69% 73% Estimated value of existing Products in existing markets: (Market projection x Market share) Year 1 Year 2 Year 3

150100.7$ 153102.7$ 156164.75$

ESTIMATED POTENTIAL REVENUE FROM EXISTING PRODUCTS IN NEW MARKETS (MARKET DEVELOPMENT)* Year 1 Year 2 Year 3

2311550$ 2357782$ 23194937$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS IN EXISTING MARKETS (NEW PRODUCT DEVELOPMENT)*

Year 1 Year 2 Year 3

480322$ 489929$ 499727$

ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS IN NEW MARKET SEGMENTS (RELATED DIVERSIFICATION)* Year 1 Year 2 Year 3 60040$ 61241$ 62466$

Documents

Strategic Marketing Haleeb Foods