MARKETING PLAN OF EBM

HISTORY:

English Biscuit Manufacturers (Private) Limited was established as a joint

venture company in 1965 with the name of Peek Freans Pakistan Limited. In
1966, the UK sponsor company was renamed Associated Biscuits International
Limited (ABIL), while the venture was renamed English Biscuit Manufacturers
(Private) Limited (EBM), which stands to date.

EBM started manufacturing and marketing the world famous Peek Freans range
in 1967 in order to provide Pakistani consumers with nutritious and hygienically
packed biscuits of the highest quality.

True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industry
in Pakistan for over 40 years by playing a pioneering role in providing innovative
and high quality biscuits for every taste bud.

EBM’s trademark, Pied Piper, made its mark three and a half decades ago, but
continues to remain in the hearts, minds, and souls of the people through the
variety and excellent quality of biscuits manufactured under its umbrella. EBM
enjoys the distinction of being the first food company in Pakistan to promote
biscuits as 'food between meals'

EBM has been in the business of manufacturing and marketing branded biscuits
in Pakistan for over 40 years. The brand name 'Peek Freans' is a household
name, and people trust and believe in the quality of the products produced under
this brand. EBM is also the first biscuit company in Pakistan to have achieved
ISO - 9001 Certification in correspondence with its institutional slogan 'The
Legend Leads'. The achievement also endorses the company's firm commitment
to high standards of quality.

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 MARKETING PLAN OF EBM

EXECUTIVE SUMMARY

The reason why i chose EBML is that the biscuit industry in Pakistan is currently
experiencing high competition between the two major players, that is EBML and
LU.EBML had been and is a major player in the biscuit industry. Infect it had
been the market leader until the arrival of Continental Biscuit Limited (CBL), the
makers of LU Biscuits. To regain its lost market leadership EBML has been
forced to reconsider and re plan its marketing strategies and reposition itself in
the biscuit industry.
This has given us the opportunity to analyze a company, which is actively and
strongly challenging its competitor for its lost share. It has also given us a
valuable chance to apply the concepts, which i have learnt in our Principles of
Marketing course. I have used this opportunity to put forth our own views and
analyses of EBML's environment, strategies, organization, systems, productivity
and functions. Finally i have given our recommendations and opinions which i
have come up with after making our analysis.

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What Do I Aim To Present?

My main focus in this report is the Marketing Audit of EBML. Through this, i aim
to identify the compatibility of the company's basic marketing strategies to its
resources, structure of the company and ultimately the biscuit industry, its
strengths and sicknesses, the effectiveness of the company's control system and
finally how they have actually gone about implementing their strategies.

In this process i have began by analyzing EBML’s micro and macro environment.
This is then followed by an audit of EBML’s Marketing Strategy, the Marketing
Organization and the Marketing System. I will then focus on the productivity and
finally conclude by analyzing the marketing functions such as products, price,
distribution, promotion and sales force.
Following the audit i will focus on our analysis and in turn will present our
recommendations for EBML. Also included will be other alternatives and
contingency plans.
Application of Concepts and Strategies
By observing and analyzing EBML’s environment, strategies, organization,
functions and control systems, i have tried to apply the various concepts and
strategies taught to us in our course. These concepts have helped us in
understanding the various strategies and functions being performed in EBML.

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I have in this respect started by applying the following marketing concepts and
terms:

• Product Mix.
Recommendations

In this respect i have tried to give our recommendations which i thought

the company should consider. This is obviously been based n our
analysis and findings. In addition to that our recommendations have
been based on the way i have approached company cases in our
course. These recommendations are given within the audit itself and
relate to the concepts that i have identified relevant to EBML’s case.

Problem Statement1

EBML, currently a market challenger in the biscuit industry, is engaged in

differentiation and value-pricing strategies. Hoover, the wide product line of the
company constituting various products in the decline stage is cannibalizing the
front runner brands like Rio, Marie, and Gluco. Moreover, stiff competition from
LU and changing consumer preferences are the main hurdles in EBML’s efforts
to regain its lost market leadership position in the industry, capitalize on its Pied
Piper icon and increase market share of its profitable front runner brands.

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Vision

• To provide high quality value-added food to contemporary and future

generations
•
• To constantly endeavor for the acquisition of knowledge and excellence in
developing human skills, product innovations and state-of-the-art
technologies
•
• To be a good corporate citizen by giving back to the community and
improving the lives of the underprivileged
•
• To dispense equitably, fairly, and with compassion, the fruits of success
among our “partners in business”
•
• To become a partner with the Government in sharing the responsibility of
economic and social uplift and development of Pakistan

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Values

• I believe that no individual is bigger than the institution

•
• I believe in integrity, transparency and commitment as our cultural ethos
•
• I continually adhere to the highest standards of hygiene and ecology
•
• I believe in governance in human face
•
• I protect and promote the cause of the environment
•
• I emphasize on employee lifer
•
• I believe in leading and innovating in all aspects of business

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Corporate Social Responsibility

Page intro goes here

Since gaining independence, Pakistan has been very fortunate to have socially
conscious entrepreneurs in its midst. A large, diverse number of individuals and
groups have placed the interest of the nation and its people above their own, and
in doing so, have earned the respect and reputation that their companies carry
today.

EBM is one of the leading firms of the country, not only in terms of profitability
and growth, but also in the area of social services. EBM’s corporate social
responsibility umbrella has benefited several sectors including environment,
education, health and sports.

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Environment

Environmental protection, safety and security have always been the top priority at
EBM. EBM performs its business activities with utmost respect and care for the
environment through proactive environmental management.

Waste Water Treatment Plant

EBM has set up a waste water treat while the company is committed to delivering
high quality products; it also recognizes the importance of being a responsible
corporate citizen. emend plant and the company is using treated water for
gardening purposes and to irrigate the newly landscaped recreation area and
park for children.

Solid Waste Management Area

The company has built a separate area for solid waste so that it does not harm
the environment. Mostly waste is disposed of in a manner that is not harmful to
anyone.

Development Plan
The company has constructed a lush green area for families, including children’s
play area, three waterfalls and gazebos, at an expenditure of Rs. 6 Million.

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Education

EBM strongly believes in education, especially for females and adults and has
sponsored several programmers such as the Garage School, Clifton Karachi, the
CHAEF (Children Health and Education Foundation) School and the Shaheen
KG School in Kala Shah Kaku, Lahore. The company has also initiated an in-
house literacy programmed for its employees by the name of Ujala. Regular
donations and fundraising activities have also become part of day to day
business at EBM, as part of the company’s social responsibility initiatives.

Health

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In the field of healthcare, EBM’s support over the years has been extended to
Shaukat Khanum Trust, Sahara for Life Trust, Edhi Foundation, Fatimid, Marie
Adelaide Leprosy Centre, Alamgeer welfare Trust, The Helpline Trust /
Consumer Protection Council and the Children’s Health and Education
Foundation, to name just some of the beneficiaries. Other initiatives have
included the operation of the Children’s Nutritional Program.

Sports

EBM firmly believes that a healthy mind works in tandem with a healthy body and
has backed the sports initiatives of individuals and national teams, since the
company’s inception. EBM was also the first corporate entity to have sponsored
cricket, hockey, tennis and golf in the early years of PTV, when sponsorships ire
considered a taboo in the marketing circles of Pakistan. Through its sponsorship
support, EBM made it possible for millions to watch major international sporting
events through the first-ever live telecast, via satellite, of Mohammad Ali’s boxing
bouts (1974), the telecast of the Football World Cup (1973) and the finals of the
All England Lawn Tennis Championships, direct from Wimbledon.

Extending support in sports to the less privileged, the company has also
sponsored the Blind Cricket Tournament 2004 and the Asian Olympics for
Special People in Lahore.

As the legend leads, EBM’s endeavors serve the crucial purpose of creating an
awakening and getting others to start thinking about socially responsible
behavior. This is only possible if more and more companies, and not just the
large ones, come forward to do their bit. The corporate sector must take a long-
term view on this matter as a prosperous community can only benefit the
corporate sector in return.

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Certifications

EBM is the only Company in the industry to have achieved recognized

international certifications including ISO 9001:2008, ISO 14001:2004, ISO
22000:2005, ISO 27001:2005 and Halaal Certification.

Details of the certifications, and recognition given below:

ISO (International Organization for Standardization)

ISO is a global network that identifies what International Standards are required
by business, government and society, develops them in partnership with the
sectors that will put them to use, adopts them by transparent procedures based
on national input and delivers them to be implemented worldwide. ISO – a
nongovernmental organization – is a federation of the national standards bodies
of 157 countries, one per country, from all regions of the world including
developed, developing and transitional economies with a central Secretariat in
Geneva, Switzerland, that coordinates the system. PSQCA (Pakistan Standard of
Quality Control Authority) represents Pakistan as the national standard body.

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ISO 9001:2008

ISO 9001:2008 is a Quality Management System that focuses on controlling and

monitoring quality factors. This international standard promotes the adoption of a
process approach when developing, implementing and improving the
effectiveness of a quality management system, to enhance customer satisfaction
by meeting customer requirements..

The ISO 9000 is primarily concerned with "quality management". This means
what the organization does to fulfill:

- The customer's quality requirements, and

- applicable regulatory requirements, while aiming to
- enhance customer satisfaction, and
- achieve continual improvement of its performance in pursuit of these objectives

ISO 9001 applies to all types of organizations. It doesn’t matter what size they
are or what they do. It can help both product and service oriented organization
achieve standards of quality that are recognized & respected throughout the
world.

(EBM initially acquired ISO 9001:2000 in 1999 and converted to ISO

9001:2008 in 2009 through URS).

ISO 14001:2004

The ISO 14001 is primarily concerned with "environmental management". This

means what the organization does to:

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 MARKETING PLAN OF EBM

- Minimize harmful effects on the environment caused by its activities, and

- To achieve continual improvement of its environmental performance.

The ISO 14000 environmental management standards exist to help organizations

minimize how their operations negatively affect the environment. The major
objective of the ISO 14000 series of norms is "to promote more effective and
efficient environmental management in organizations and to provide useful and
usable tools - ones that are cost effective, system-based, and flexible and reflect
the best organizations and the best organizational practices available for
gathering, interpreting and communicating environmentally relevant information

(EBM acquired this certification in 2005 through URS).

ISO 22000:2005

The ISO 22000 international standard specifies the requirements for a food
safety management system that involves the following elements.

- Interactive communication
- system management
- prerequisite programs
- HACCP principles

ISO 22000 can be applied independently of other management system standards

or integrated with existing management system requirements.

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ISO 22000 integrates the principles of the Hazard Analysis and Critical Control
Point (HACCP) system and application steps developed by the Codex Aliment
Arius Commission. By means of auditable requirements, it combines the HACCP
plan with prerequisite programmes. ISO 22000 requires that all hazards that may
be reasonably expected to occur in the food chain, including hazards that may be
associated with the type of process and facilities used, are identified and
assessed. Thus it provides the means to determine and document why certain
identified hazards need to be controlled by a particular organization and why
others need not

(EBM converted from HACCP to ISO 22000:2005 in 2008 through URS).

ISO 27001:2005

ISO 27001 formally specifies a management system that is intended to bring

information security under explicit management control. Being a formal
specification means that it mandates specific requirements. ISO 27001 requires
that management: - Systematically examine the organization's information
security risks, taking account of the threats, vulnerabilities and impacts; - Design
and implement a coherent and comprehensive suite of information security
controls and/or other forms of risk treatment (such as risk avoidance or risk
transfer) to address those risks that are deemed unacceptable; and - Adopt an
overarching management process to ensure that the information security controls
continue to meet the organization's information security needs on an ongoing
basis The ISO 27001 certificate does not necessarily mean the remainder of the
organization, outside the scoped area, has an adequate approach to information
security management.

(EBM acquired this certification for its Information Systems department in

2007 through URS, and is planning to expand it throughout the
organization in upcoming years).

Halaal Certification:

Halaal refers to things or actions permitted by Shariah law without punishment

imposed on the doer. It is usually used to describe something that a Muslim is
permitted to engage in, e.g. eat, drink or use. Halaal Certification is recognition

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that the products are permissible under Islamic law. These products are thus
edible, drinkable or usable by Muslims. For the consumer, the benefits of halaal
certification are clear i.e. knowing a product is halaal-certified means he or she
does not have to bother checking all the ingredients. The consumer can
purchase the product with the assurance it does not contain anything that is
haram or doubtful.

(EBM acquired Halaal certification in 2009 through IFANCA).

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SWOT ANALYSIS
SWOT Analysis3
Strengths

• A wide product line

• The Pied Piper icon

• A strong distribution network

• Innovation in terms of new ingredients

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• Value pricing

• A ill implemented offensive strategy

• Competitive advantage in terms of

more varieties of biscuits

• Established brand equity

WEAKNESSES
• Vague impression in the minds of the consumers of the relationship of Pied
Piper with EBM & Peek Freans both

• Inability to capitalize on individual

Brand advertising

• A wide product line which is

Cannibalizing the front runner brands

• Ineffective innovation in production

Threats

• Stiff competition from LU in terms of

Packaging, branding, and advertising

• Changing consumer preferences

• Availability of foreign brands, like

Oreo

OPORTUNITIES

• Converging the company’s distributors

• Availing more shelf space and

Enhancing distribution coverage
• More concentration on the “kids segment

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PRODUCT
BRANDS:

Under the brand range, Peek Freans, the company today carries the largest
variety of biscuit products including Marie, Gluco, Click, Sooper, Rio Strawberry
Vanila, Rio Choco Vanila, Rio Chocolate, Rio Vanila, Party, Peanut Pik, and
Peanut Pista.

English Biscuit Manufacturers (Pvt) Ltd., or (EBM), is the country's leading

manufacturer of biscuits and cookies since 1967, with an annual sales volume
and production capacity of more than 90,000 tons and a turnover of more than
Rs. 12 billion. EBM is the only Company in the industry to have achieved
recognized international certifications pertaining to quality control, environmental
management system and human resources management, including ISO
9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People)
Recognition. EBM is also the only food company to have been awarded
Environmental Excellence Award for seven successive years 2004, 2005, 2006,
2007, 2008, 2009 & 2010.

As a socially conscious company, EBM consistently supports various

humanitarian causes in the areas of education, sports, healthcare and help for
the less privileged

The EBM Quality Commitment

The Management of English Biscuits Manufacturer's (Pvt) Limited affirms that
every product carrying the icon of the Pied Piper has all the Quality attributes that
will fully satisfy consumer / customer's expectations. I believe that our people and
our products embody our corporate slogan "The legend Leads" in terms of quality
standards, in terms of innovative capabilities, in terms of human skills.

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EBM Quality Management System binds the management and employees of the
company to follow core policies:

• I will critically examine and continuously review all aspects of operations,

from procurement to be distribution of finished products, to identify any
shortcomings or space for cost - effective improvement and will undertake
appropriate quality – enhancement measure.

• I will identify and, where possible, anticipate changes in consumer tastes

and preferences through Market Research, on the one hand, while
Technical Research and Development on the other, in other to retain
leading edge in product and process development.

• I will endeavor to recognize and establish Beat Practice criteria for all
aspects of the company's activities, including the maintenance of
environmental protections and safety standards.

• I will undertake continuous appraisal, feedback and training of our

personnel at every level to ensure optimum levels of productivity, creativity
and job satisfaction.

• The Management believes that every member of the organization at every

level shares and fully affirms the Company's Quality Commitment.

MARKET SHARE

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55%

20% KOLSON

16% LU

9% BISCONI

PRODUCTION FUNCTIONS
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 MARKETING PLAN OF EBM

MATERIAL RECEIVING

• Supply Chain contact approved suppliers and purchase raw

material from them

• Supplies come through trucks. In case of some materials,

material is not off-loaded without testing.

• Sampling and testing is carried out by QA personnel. Composite

sample is collected to get good results.

• After approval, incoming material is stored in raw material store

and packaging material store, whereas sensitive items such as
butter, color, flavors are stored in cold rooms.

In rest of the cases, Quality assurance performs testing after

material is stored in relevant stores and then accepts/rejects the
material.

PRODUCTION PROCESS

• Information for daily production plan is supplied by marketing

and sales department on the basis of customer demand. Keeping
in view these factors, production plan is made.

PRODUCTION STEP 1: MIXING

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There are six different mixing areas.

For a specific product, ingredients are weighed (according to pre-
defined recipe) in weighing area

Mixing is carried out in either vertical or horizontal mixer,

depending upon the nature of the product

PRODUCTION STEP 2: CUTTING

After mixing, dough is transferred from hopper to cutting line

There are total 6 lines, which are reserved for different products.

Dough passes through the conveyer belt and is shaped according

to product

PRODUCTION STEP 3: BAKING

Unbaked biscuits enter the oven, conveyer belt is constantly

moving at a slow pace

Different types of heating devices are present in oven which

provides different temperature

Approximately 6 minutes are passed in oven during which

different temperatures treatment are given to biscuits starting
form lower to higher temperature

Conveyer belt then moves to Buffer Zone.

COOLING (BUFFER ZONE)

After high temperature treatment baked, biscuits are not very

stable and texture is not fully developed, that’s why they are
passed through Buffer Zone for cooling

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It is merely an area consisting of relatively low temperature.

Conveyer belt containing biscuits passes through this area to
cool down the biscuits

PRODUCTION STEP 4: PACKAGING

After cooling, workers pick the biscuits for conveyer belt and
place them in different gauges set according to Ticky Pack (TP),
Snack Pack (SP), Half Roll (HR) or Family Pack (FP)

Biscuits are automatically packed in final packaging material

(inner sealing) incase of TP, SN, HR, and then are finally packed
in master cartons

FP is packed in 3 different packaging material; inner sealing,

outer sealing and then finally master carton

Master cartons are sealed and are transferred to finished goods

Store

DISPATCH

Products are stored in finished goods store according to date are

dispatched on FIFO (First in First Out) basis

QA performs final checking of finished products, after which

product is dispatched through trucks to different distributors

Distributors further distribute the product to retailers

EXPORT

Peak Freans products are also exported to different countries of

the world including USA, UK, and Canada etc.

Export order is raised from sales and marketing department.

Export order contains the name, type, quantity, packing

Specifications of the product

Supply chain and production is enquired whether they can

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Produce the required amount of product in limited time.

After their approval, product is manufactured according to

specifications defined in export order

Product is packed in containers which are shipped to the

destination

After custom’s clearance, containers are delivered to address

mentioned on the export order

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