PRINCIPLE OF MARKETING

Report
GROUP MEMBERS:

Rizwan Khan Humayun Tahir Talha bin Tariq Zain Ali Chughtai

Submitted to: Mehreen Rehmani Lahore School of Economics

Table Of Contents

Serial No. 1 2 3 4 5 6 7 8 History Introduction Profile of Haleeb

Topics

Pages 3 3 4 5 6 9 10 11 12 13 13 14 14 15 15 16 16 18

Mission and Vision Statement Product Range Marketing strategy Marketing Mix Product: Milk Collection

Price Price strategy Price objective

10

Promotion Advertisement

11 12 13 14

Placement BCG Matrix SWOT Analysis Problems

History Of Haleeb
Chaudhry Dairies limited was incorporated in 1984 as a Public limited Company. The head office is situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km Lahore-Multan Road, Bhai Pharu. Commercial production started in 1986 & the company reached its breakeven in the year 1992. In the 1993 milk powder was introduced in the market in the bulk form.

Haleeb Foods is well known for it first mover initiatives in product & packaging innovations. The company believes in using leading edge processing & packaging technologies to meet consumers expectation of hygienic & high quality food products. Haleeb Foods employs the broadest range of packaging formats; Tetra Brick, Fino, Classic & Foods grade plastic bottles for the convenience of consumer. The company has one of the largest nationwide distribution networks with the help of 1100 distributors/ dealers delivering high quality products even in remote areas of Pakistan. Moreover, it has tapped opportunities in export markets including Korea, Hong Kong, Bangladesh, Afghanistan & the central Asian states.

INTRODUCTION - THE COMPANY

Haleeb Foods Limited is one of the fastest growing packaged food companies in Pakistan with an annual turn over rate of 7.2 Billion. It was incorporated on 9th April 1984, while its started its commercial production in July 1987. Within a short span of just 2 decades, the company is operating in 5 businesses segments; UHT milk, Cream, Juices, Powdered milk & Butter oil. Haleeb Foods has achieved undisputed leadership in the liquid packaged milk category with a market share of more then 56%. The company has a very

strong portfolio consisting of leading National / International Brands; Haleeb, Candia, Dairy Queen, Nrish, Skimz & Tropico.

PROFILE OF HALEEB

Plant Distance from Lahore Company Established Plant Installation Plant Trials Commercial Production Affiliation with CCF-Holland Power Plant Installation Breakeven Point Achieved TQM System Established Achieved #1 Position in UHT milk ISO-9002 Certification ISO-9001: 2000 Certification HACCP Bottling Plant Installation Total Land Plant Covered Area Colony Covered Area Admin Block Covered Area

62 KM 1984 1985 May, 1986 May 21, 1986 1989-91 1992 1994 1994 1996 1997 March 2003 June 2003

ISO-14001 (Certification Recommendation) August 2004 1998-99 81,000 Sqr.Mtr. 12,000 Sqr.Mtr. 19,600 Sqr.Mtr. 600 Sqr.Mtr

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"

COMPANY VALUES

Accountability Team Work Enterprise Empowerment

Trust

VISION STATEMENT

" Most innovative & fastest growing food company offering products enjoyed in every home every day".

TOTAL QUALITY - OUR CORE MISSION:

Providing nutritious and hygienically processed food products to our customers at

competitive prices. Enhancing our reputation for quality in all our operations. Promoting mutual trust with customers, suppliers, employees and shareholders. Providing a safe and healthy environment to our community.

PRODUCT RANGE

Haleeb Foods Limited is producing the quality products as per the standards of ISO & HACCP. Along with the quality products, Haleeb is also producing the wide range of the products including milk based products, juices, powder etc.

The products can be divided into following ways:

Types Of products Consumer products Industrial Products Exports

CONSUMER PRODUCTS:

Products, which are branded and are sold to the end consumer through a distribution chain in the packaged from as produced by the company. Consumer products are sold under following brand names:

1)

Haleeb (Umbrella brand):

i.Haleeb UHT Milk ii.Haleeb UHT Cream iii.Haleeb Yogurt iv.Dairy Queen v.Haleeb Gold vi.Haleeb Good Day Pure Juices (Mango, Orange, Apple, Mix, Pineapple, Red grape) vii.Nrish (Instant Full Cream Powder Milk) viii.Asli Desi Ghee ix.Haleeb Fun Day Juice Drinks x.Haleeb Laban (Saltish & sweetened) xi.Haleeb Tea Mix (Plain & Cardamom)

2)

Candia:

i.Candia Candy Up Flavored Milk (Brick) ii.Candia Bottles iii.Candia Liquid Skimz iv.Candia UHT Milk (Brick)

3)

Tropico:
i.Tropico Fruit Drink (Mango, Apple, Mix)

INDUSTRIAL PRODUCTS:
Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it is also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced in 1996. Both products are sold in 25 kg bags.

Excess milk fat is sold unprocessed to makers of butter, ice cream and sweeteners, or at request is turned into ghee.

EXPORTS:
CDL started exporting its products in 1999 and has done business with customers in Korea, Afghanistan and china, United Kingdom.

Objectives of the company:

To be an innovative marketing and research oriented company.

To develop product with market potential through means of indigenous technology and research and development. To target new emerging segments of milk market. To deliver consistent quality to our customers using pure ingredients and best available technology. Dedicate to continuous improvement through active alliance with other companies in technology and packaging department. To deliver a fair return to our valued investors and shareholders annually in line with industry norms and economic conditions.

Marketing Strategy
The strategic plan defines the companys overall mission and objectives. Consumers stand in centre. The goal is to create value for customers and build profitable customer relationships. Marketing strategy means the marketing logic by which the company hopes to create value for their customers and achieve profitable customer relationships. The company decides which customers it will serve which includes segmentation and targeting and how will it serve which includes differentiation and positioning. It identifies the total market, then divides it into smaller segments, selects the most profitable segment and focuses on serving and satisfying the customers in these segments. To find the best marketing strategy, the company engages in marketing analysis, planning, implementation and control. Through these activities, the company watches and adapts to the actors and forces in the marketing environment. The market consists of many types of customers, products, needs and wants. The marketer has to determine which segment offers the best opportunities. Consumers can be grouped and served in many ways based on geographic, demographic, psychographic and behavioral factors. The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate products or marketing programs. Haleeb is currently serving its product to mass market

that means that they have not segmented their market. They are serving their product to everyone. Milk is a product which generally does not need to be segmented because it is required in every household. So Haleeb is focusing on a big market which is not segmented so they can achieve higher profits. Its not only Haleeb which is targeting mass marketing but other competitor like Milk Pak and Olpers are also focusing on mass marketing. In case of Haleeb, their marketing strategy is to create market positioning which means arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target customers. They have positioned their product in minds of customers as a quality product; their milk comes straight from the farms. They have positioned their product as hygienic. They claim that their milk is pure from germs and is thick than other competing brands. They believe that their product has natural enrichments. The company is targeting females and people of mature age for Haleeb milk as they are mainly interested in the purchase of Haleeb milk but in case of Candia they are targeting children as they are providing freedom to them to make choices of their own.

Marketing Mix
Guided by marketing strategy, the company designs integrated marketing mix made up of factors under its control; product, price, place and promotion. Marketing mix is the set of controllable tactical marketing tools such as 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 product. Marketing mix include four Ps;

PRODUCT

PRICE

PLACEMENT
1-Product

PROMOTION

Product means the goods and services combination the company offers to its target market. Currently Haleeb is available in three sizes i.e. quarter, half and liter packs. The packaging is not so much attractive but it is easy to handle by the consumers. The packaging list all the ingredients used in the product which are in line with the legal requirements. Haleeb contain all the necessary vitamins and proteins required by a human body. It gives the body the strength it requires. The taste of the milk is so delicious that you wont drink it as milk but as a refreshing drink. In order to increase its sales Haleeb has to change its packaging. It should design a new colorful packaging so consumers can be attracted to its packaging. It is a common trend in manufacturing businesses to change the packaging of the product which gives it a new feel and it do affect the sales and the profitability of the company.

Consumers everywhere know that only Haleeb Milk makes the best tea ever because of its thickness. Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest standard with 3.5% fats and 8.9% solid non fa ts. It is Haleeb Foods premier brand, and the choice of quality-conscious consumers who only go for the best. Packed in easy to open, 6layered Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life. A system in which HFL purchases and preserves raw milk that meets its quality standards through their staff members are known as self-collection. It may include the following: I) Milk Collection Through Village Milk Collection Centre (VMCC) Village Milk Collection Centre (VMCC) is a place where the farmers of an area come and give milk and a person appointed by the company collects milk after testing it. At VMCC the agent keeps the record of all the farmers who supply milk at VMCC and takes samples from the milk. The samples are tested and receipt is given to the farmer and a copy is kept at the VMCC for record. Ii) Direct From Farmers (Df) The collection vehicle, when goes to an area for the milk collection, there are some farmers who dont supply milk at the VMCC. They are aware of the timings of the collection vehicle, so they supply milk directly to the people in the vehicle.

Iii) Progressive Farmers (Pf) Progressive farmers are those farmers those who deliver the milk in a large quantities and supple directly to the collection vehicle

2-Pricing
A products price is the major determinant of the market demand for it. Price effects the firm competitive position by net profits because it is the price that brings money into the organization. Many companies in this century are doing what is called Value Pricing. Value pricing is the price competition which aims to enhance the products quality. Value pricing can be achieved by placing a product with distinctive features priced above the market rate. Value pricing depends on the combination of all the elements of marketing mix in order to maximize benefits in relation to cost and price. On the other hand many firms are also focusing on low prices for its products because now days the competition has increased and grown. Globalization is also encouraging firms to decrease their prices in order to survive and make profits.

Pricing Strategy
There are actually two main types of pricing strategies. 1. 2. Market Skimming Pricing Strategy Market Penetration Pricing Strategy

Selecting a high initial price for a new product is referred to as market skimming pricing. Whereas, selecting a relatively low price for a new product is termed as market penetration pricing strategy. Haleeb is using market penetration pricing strategy for their product since it is not performing well now days. It is seeing the worst phase of its life cycle. So in order to survive this phase Haleeb is focusing on penetration pricing. There is not a lot of difference in the prices of its competitors because Haleeb has to cover all of its expenses. In order to survive this period of product life cycle Haleeb can carry number of steps so its product can get back where it was previously. Haleeb can introduce Quantity Discount.

It is actually the deduction from sellers list price intended to encourage the customers to buy in larger amounts. This discount is based on the size of purchase either in rupees or in units.

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

3-Promotion
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Currently Haleeb is doing promotion equal to zero. They are not giving any advertisements. They are not doing other type of promotional activities like displaying their product in an attractive manner in big stores. While its competitors Milk Pak and Olpers are doing all kinds of promotional activities. Haleeb should concentrate more on promotion in order to increase its sales. They should do advertisements on electronic media like televisions. They can also give discount to their customers. TV Commercial: T.V commercial is the main medium that is most actively being utilized by Milk Pack and Haleeb Milk. The second medium that helps both of them is through Tetra Pak advertising that is highlighting the effects on doodh that is provided by the normal means.

Posters and billboards:

Posters and billboards are also affectively used for the promotion purposes but they are not focusing on it as heavily as they are focusing on advertising. Billboards are purchased for some time period but after the promotion is known to everyone the billboard were not used anymore.

Posters are pasted at the small shops to enforce the impulse buying and Haleeb gives a lot of weight-age to the shelf space that they get. But this strategy is used in big shopping malls only because nestle enforce the retailers through other products so that Haleeb cant enforce small retailers.

4-Placement

Place include activities that make the product available to target customers. Channel of distribution which Haleeb is following is Producer Distributors Retailers Consumers

This diagram shows that Haleeb is passing through producers to their distributors that will distribute Haleeb to different retailers and markets then the consumers will buy Haleeb from retailers. Haleeb is currently available in the market but it is not available in every store or shop. Haleeb cannot be easily found. The distribution is not good; it is a problem with their distribution. The product is not distributed everywhere. Haleeb has to improve its distribution channel so the consumers can buy it from everywhere.

BCG Matrix

Star is a product which has high market share and high market growth. Cow is a product which has low market growth but high market share. Haleeb food has no star and cash cow in their product range. Question mark is a product which has high market growth and low market share. Haleeb milk is question mark. They need to divest this product. Dog is a product which has low market share and low market growth. Haleeb yogurt is a dog because market for packed yogurt has low growth and Nestles yogurt is selling in the market.

SWOT Analysis:
Many organizations perform SWOT assessment in this activity a firm identifies and evaluates its most significant Strengths, Weakness, Opportunities and Threats. To fulfill

its mission an organization needs to capitalize on its key strengths overcome weakness avoid threats and take advantages of the opportunities.

Strength:
It includes Natural Enrichments which are healthy for human body. It is Hygienic which is good for human health. It is the thickest milk in the market which is also its unique selling point. It has good tetra pack packaging which sustains quality. Quality improvement Pioneer of flavoured milk

Weakness:
o o o o competitors. o competitors. Slow promotional activities, as compared to their The Distribution Channel of Haleeb is not good. Its product is not distributed everywhere. They are doing Less Promotions which is helping Haleeb to fall down. Communication gap. Weak distribution networks as compared to their

Opportunity:
The company can distribute Haleeb everywhere and in new markets like rural areas so it can increase its market share. Getting international contracts with England, Middle East,

and Holland, Afghanistan.

Threats:
There are large number of competitors present in the market like Milk Pak, Olpers, Nurpur, Good Milk and some imported brands. A large number of consumers are brand loyal to Milk Pak and Olpers so it is hard

to break brand loyalty. There is a fierce competition because the advertisement campaigns of different

competitors are very good. New entrants.

Problems
There are number of problems present for Haleeb. The most important problem for them is that their market share is decreasing fast. So ultimately their profits are also affected. The reason why Haleebs market share has decreased is because new competitors have entered into the market like Olpers, Nurpur and Good Milk. They have done extensive promotional activities and attracted consumers to buy their product. Haleebs distribution channels are also not good and their product is not delivered at every store and shop. They are not doing any promotional activity which is also affecting their sales. They are not able to design effective marketing strategies which have also played a role in the downfall of Haleeb in the market. The competition has grown bigger and tougher so it is very tough and difficult for Haleeb to survive in this cut throat competition.