Strategic Marketing

& Planning

Pakistan Spice Industry

Country Spice Production (Billion)

Bangladesh India Malaysia Indonesia Pakistan

Usage of Spices in Pakistan

Total consumption of Spices in Pakistan Category wise consumption Total consumption of Desserts in Pakistan Category wise consumption

Market Size & Growth

Growth Past 4 Years
According to the product category
arket ! Product Seg"ent #$%% #$%% #$%# #$%&

Growth 'uture 4 Years

arket ! Product Seg"ent #$%4 #$%( #$%) #$%*

Strategic Marketing

& Planning

According to product category

arket ! Product Seg"ent ,ntro Seg"ent +ife Cycle Growth aturity -ecline

arket Seg"ent

Product +ife Cycle 'or each product in the category

Product +ife Cycle arket ! Product Seg"ent ,ntro Growth aturity -ecline

Strategic Marketing

& Planning

-istri.ution Structure
#$%4 /urno0er Share arket ! Product Seg"ent -istri.utor ! 1etail 80 "0 "0 $0 8& '& -istri.utor! 2holesaler !0 #0 !0 %0 & (& & (00 'ood Ser0ices! -istri.utor

'&

Analysis -istri.ution Structure

Strategic Marketing

& Planning
arket Share per Seg"ent

Co"panies 3 Co"petitors
Per product in each category
arket ! Product Seg"ent

arket Share 4uantity tons

arket Share 5alue 7$$$

arket Share 6 6

8estle 9utlet Co0erage and

arket 1each

Strategic Marketing

& Planning

Shan 9utlet Co0erage

9utlets
Total )utlets *estle )utlets )utlet Co+erage )utlets Contri,ution

/otal

Shan

9utlet Co0erage Bench"ark

Shan

arket 1each Bench"ark

8estle Area wise

arket Co0erage

The ta,le ,elow shows the of re+enue that is generated from different areas for all the diary products *estle has
Areas Spices
-arachi ./S/ South Costal Belt 0uetta 1ydera,ad Sukkar 2ahore ./S/Center Multan .aisala,ad 3u4rat Sahiwal Islama,ad ./S/*orth Islama,ad )utstation Peshawar )utstation Peshawar

Percentage Contri.ution -esserts

Strategic Marketing

& Planning

1A/,8G AGA,8S/ CUS/9 :1 BUY,8G C1,/:1,A

The ta,le ,elow suggests what is the weight age customer gi+es to each of the non priced attri,utes and how is *estle and 1alee, performing against them

4UA+,/Y 3 P1,C: 8on Price Attri.utes affecting Custo"er Choice Product=1elated (/ 0uality 5Thickness6 !/ Packaging 5Cap6 #/ Packaging 5Material 7sed6 %/ Price &/ Brand *ame Ser0ice= 1elated (/ Distri,ution !/ 8fter Sales Ser+ice 2:,G</AG: 6

8estl;

<alee.

Strategic Marketing

& Planning

>ey Process ,ndicators (, want to de0elop this for Shan)

Supply Chain
Plant 7tili9ation : This -PI tells how optimally plant is used Machine Downtime : This -PI indicates what is the a+erage down time of the machine per month/ 2iters Processed Per Day : Indicates how many liters of milk are processed per day/ Production Cost Per 2iter : This is +ery important -PI which indicates the cost of production per liter/
>P,s Plant Utili@ation achine -own /i"e ,ndustry Bench"arks '0 ! 1ours 2here Are 2e? (00 !/& 1rs ,"pro0e"ent Plan , Install new production plant They should ha+e separate machines for ;uices and Milk Processing so that down time is decreased/ Same as 8,o+e Installing new plants in Ta= .ree >ones would decrease cost of production/ ,"pro0e"ent Plan ,,

+iters Processed Per -ay Production Cost Per +iter

%&0<000 2iters !8

%&0<000 !8

Impro+e the milk collection system By installing new technology machine cost of production can go down ,y at least %0

'inancials
?e+enue Per @mployee : This tells what is the contri,ution of each employee in re+enue generation of the company/ 3ross Profit Margin : Aery common financial -PI which indicates the companies gross profit margin/
>P,s @BIT8 ?e+enue Per @mployee ,ndustry Bench"arks 2here Are 2e? (<(8$<8&#<000 (<!%'<#(8 ,"pro0e"ent Plan , This can ,e greatly impro+ed ,y trainings and certifications/ ,"pro0e"ent Plan ,, Planning to install BBI Monitors this actually monitors the screen of the person and indicates his efficiency

3ross Profit

!<"%0<(8"<000

This can ,e

Strategic Marketing
Margin

& Planning
greatly impro+ed ,y decreasing cost of distri,ution and cost of production/

<u"an 1esource

anage"ent

Cost to 1ire : Indicates what is the cost of hiring each employee< here the cost of recruitment department is di+ided ,y num,er of hires in a year/ Turno+er ?ate : Bhat is the turn o+er rate of employees/ Salary Packages : 8re salary packages attracti+e/
>P,s Cost to 1ire ,ndustry Bench"arks 2here Are 2e? $0<000 ,"pro0e"ent Plan , They plan to ha+e contract with Borld Call and use there ,andwidth ser+ices for Aideo Conferencing rather then asking them to fly all the way to 2ahore They do ha+e the ,est retention rate in industry ,ut this can ,e further impro+ed ,y offering more incenti+es and pro+iding healthier en+ironment Share profits with key employees so that they are moti+ated in achie+ing organi9ational profits/ ,"pro0e"ent Plan ,,

Turno+er ?ate

(!

Salary Packages

@=cellent

Sales
8+erage Sales Per Salesman : Bhat is the a+erage sales per salesman< this tells how efficient the salesman are/

Strategic Marketing

& Planning

Percentage 3rowth @+ery Cear : Bhat is the growth rate of the companyD

>P,s 8+erage Sales Per Salesman

,ndustry Bench"arks They are the leaders

2here Are 2e? ?s (##<### Per Day

Percentage 3rowth @+ery Cear

!&

!#

,"pro0e"ent Plan , Though they are lading ,ut this can ,e greatly impro+ed if online order management system is placed then they would need less salesmen as compared to now/ Due to plant capacity ,eing used *estle is not a,le to catch up with industry ,enchmark so if new plant is installed *estle can also cross the Industry Standards

,"pro0e"ent Plan ,,

Market ?each

%!

&$

-istri.ution
@mpty ?unning : .or how much time the +ehicle was empty running Time 7tili9ation : .or how much time the +ehicle was utili9ed De+iations .rom Schedule : Bhat is the percentage de+iation from scheduled deli+ery/ 2iters Deli+ered Per Day : 1ow many liters were distri,uted in a day Distri,ution Cost Per 2iter : Bhat is the a+erage cost of distri,ution per liter
>P,s Spoiled Milk Distri,ution @mpty ?unning Time 7tili9ation De+iations from Schedule 2iters Deli+ered Per Day # ,ndustry Bench"arks 2here Are 2e? 0/' ,"pro0e"ent Plan , Impro+e packaging ,"pro0e"ent Plan ,, Impro+e distri,ution time/

Strategic Marketing
Distri,ution Cost Per 2iter Brand

& Planning

Brand 2oyalty : 1ow many customers are ,rand loyal with the productD Brand 8wareness : Indicates what is the ,rand awareness of the productD >P,s Brand 2oyalty ,ndustry Bench"arks %0 2here Are 2e? && ,"pro0e"ent Plan , Impro+e Euality standards and pro+ide healthier milk Increase marketing campaigns and get your product on the shelf/ ,"pro0e"ent Plan ,, Impro+e packaging to ,ring down wastage of milk 3et more aggressi+e in BT2 acti+ities/

Brand 8wareness

"&

'0

Strategic Marketing

& Planning

Category wise o.Aecti0es

Brand 9.Aecti0es
Shan Spice Aolume ?I3 Market Share @BIT8 7nprompted Brand 8wareness Shan -esserts Aolume @BIT8 ?I3

#$%4
(&&<000 tons !% &# & F$ $0 (0<000 tons !% !&

#$#$
&&0<000 tons &" (0 '0 &0<000 tons #0 #0

Strategic Marketing

& Planning

arket Seg"entation and Product Positioning (want to de0elop this for Shan)
Growth Seg"ent Si@e in /ons !$8<'!0 !#&<#0& -rinking !!<%(0 ((<!0& !!<%(0 (0<$%%<"&0 !0 :Bpected Product :Bisting Milkpak 71T 1alee, Candia Dairy 0ueen )thers 3awala Profit Contri.ution in 1SC &#"8%0000 %"0$(0000 #'!("&00 !&!((!&0 #'!("&00 #"!&$$!&000 *ew Aariant< 3et more share from 3awalaGs< Increase @BIT *esPure

9.Aecti0es

8ew Product

%#<%'" !$<0'8 ((#<0'! /ea 2hitening ! Crea"ing (#0<%'( #%<"'8 ("<#'' 8<$'' #%<"'8 !$<0'8 8<!$%<%#0 !%

@+eryday Powder @+eryday 71T Milkpak 71T 1alee, Tea Ma= Comel Candia Dairy 0ueen )thers 3awala

("#'88000 $&!%&000 !!$(8%000 !$0'8!000 $'&'$000 &!('"000 (&!!#!&0 "8!'&&00 %&$"(&00 !8'!&&0&000 3et More Share from 3awala< Increase Target Market of @+eryday *one

(8<#$0 #$<"!0 -eserts !"<&%0 &0<%'0 %<&'0 %<%&!<#00 ,nfant 8utrition 8<!08 #(<&'0 Corporate !%<#00 !'<($0 !<#%%<'&0 <ealth Conscious $%<(!& (#<&00 !& !0 !% !0

@+eryday 71T Milkpak 71T Milkpak Cream 1alee, Comel 3awala *ido @+eryday Powder Milkpak 1alee, 3awala *es+itta Skim9

"#%%0000 "#%%0000 8!$!0000 (00'80000 (#""0000 ("80'!00000 %'!%8000 (!$#$0000 %8$00000 &8#!0000 '#"'800000 !!%%#"&00 ##"&0000 Create More awareness and increase market share Increase sales ,y !& Increase client ,ase/ ?educe cost ,y cutting down on packaging/ )pen processed milk and powder/ / More S-7Gs Sustain current performance and try to increase the market share/

*one

Strategic Marketing
'la0ored :Bports !!<000 *o 2imits % H

& Planning
Imported Smuggling $$000000 Aaries from country to country Tap this market with new products Tap this market with *estle @=isting Products *estle .la+ored Milk

8ll *estle Brands

Strategic Marketing

& Planning

Co"panies Positioning Against Co"petition (want to de0elop this for Shan)

The ta,le ,elow is a competitor profile of two dairy giants in Pakistan Dairy Industry/ Para"eters Product 2ife Cycle Company Si9e Distri,ution 8estle 3rowth <alee. 3rowth

?s &<8#!/000<000 ?s #<888<000<000 &$ Milk Pak 71T Milk Pak Cream @+eryday 71T @+eryday Powder *ido *es+ittan Drinking < Tea Bhitening< 1ealth Conscious< Deserts @=cellent "" 7tili9ed 5%&0<000 2iters Per Day6 8"0 1igh 1igh @=perienced &' 1alee, 71T Dairy 0ueen Candia Tea Ma= Skim9 Drinking < Tea Bhitening< 1ealth Conscious< Deserts 8+erage '0 7tili9ed 5#00<000 2iters Per Day6 %&0 Mediocre Mediocre @=perienced

Product Portfolio

Customer Base Marketing )perations Production Capacity 1uman ?esource Deployment .inancial Capa,ilities Brand )wnership ManagerGs Capa,ilities

Strategic Marketing

& Planning

Product D 8ew Product Plan

Current Scenario
Product arket Seg"ent Drinking Tea Bhitening I Creaming Deserts Corporate Tea Bhitening I Creaming Corporate Tea Bhitening I Creaming Deserts Positioning 2hen 2ho :Bpected 1esults

Milkpak 71T

-halis he su, kuch hai

@+ery Day powder

@+ery Day 71T

1ar achi chee9 mehangi nahin hoti

Milkpak Cream

Deserts

Sa, say 3aarhe Cream .or 3rowing 1ealthy Children< Complete *otional .ormula 1igh Calcium 2ow .at Milk

*ido

Infant *utrition

*es+itta

1ealth Conscious

Strategic Marketing

& Planning

'uture Plan
Product arket Seg"ent Drinking Tea Bhitening I Creaming Deserts Corporate Export Tea Bhitening I Creaming Corporate @=ports Positionin g PakistanGs *oH( Dairy Milk Brand 2hen 2ho Senior Manageme nt :Bpected 1esults Position in eyes of consumer as the *o/ ( Dairy Brand 8chie+e Sales and Brand ),4ecti+es for *e=t ! Cears 8chie+e Sales and Brand ),4ecti+es for *e=t ! Cears To position themsel+es as the only speciali9ed cream for deserts To continue to cater this market single handedly To increase its market and create health awareness To tap this new market segment and ,e the first fla+ored local milk

Milkpak 71T

@nd of !00&

@+ery Day powder

Tea was ne+er so irresisti,le

Mid of !00$

Senior Manageme nt

@+ery Day 71T

Tea Bhitening I Creaming

Tea was ne+er so irresisti,le

Mid of !00$

Senior Manageme nt

Milkpak Cream

Deserts

8ap kee yadon ko aur meetha ,anaye *ID) 3eneration F 1ealthier 3eneration The key to healthy 2ife

@nd of !00&

Brand Manager

*ido

Infant *utrition

@nd of !00$

Senior Manageme nt

*es+itta

1ealth Conscious

Mid of !00$

Senior Manageme nt

*estle .la+ored Milk

.la+ored Milk

2ife is Colourful

Mid of !00$

*ew Business 7nit

*esPure

Drinking< Tea Bhitening

@n4oy the real pleasure of drinking 3aarha doodh

@nd of !00&

*ew Business 7nit

To increase market share ,y adding +ariant

Strategic Marketing
Action Planning

& Planning

2hat
Production Increase Production -istri.ution Come up with new distri,utions channels 2ower Distri,ution Cost

<ow
By setting up a new plant

2ho

2hen

*estle

@nd of !00&

internet< home deli+ery Building Mini *DCGs in ma4or cities to stop product shortages/

*estle

@nd of !00$

*estle

@nd of !00&

8ew Product D 1epositioning Come up with *ew Product for *estle .la+ored .la+ored Milk Milk Segment Come up with *ew Product for 3arha Doodh Segment ?eposition *estle Milk Pak ?eposition @+eryday ?eposition Milkpak Cream ?eposition *ido

*estle Dairy

Mid of !00$

*espure

*estle Dairy

@nd of !00&

PakistanGs *oH( Dairy Milk Brand Tea was ne+er so irresisti,le 8ap -ee Cadon -oi aur meetha ,anaye *ID) 3eneration F 1ealthier 3eneration The key to healthy 2ife

*estle Dairy

@nd of !00&

*estle Dairy *estle Dairy

Mid of !00$ @nd of !00&

*estle D8iry

@nd of !00$

?eposition *es+itta

*estle Dairy

Mid of !00$

Production D ilk Collection 2ower Production Buy raw milk from Cost India if relationships impro+e Milk Collection Impro+ement 1a+e ,udgets for ,etter ,reading and feeding of cows to increase

*estle

8s soon as relationships impro+e

*estle

By @nd of !00&

Strategic Marketing

& Planning

producti+ity/

Product -e0elop"ent *estle a J 2iter packs disposa,le drink would ha+e straws attached< so one could drink milk on the go/ Packaging Impro+ement Packaging of current *estle products would ,e re+itali9ed/ Caps would ,e added to 71T packages which would decrease milk wastages

*estle

By @nd 0f !00$

*estle

By @nd of !00&