www.VU39.com Executive Summary: Internship Organization: Haleeb Foods Ltd. Internship Duration: June 25, 2007 to August 13, 2007 Introduction: This report covers the activities and responsibilities that I performed during my internship at Haleeb Foods Limited. HFL is the National Company with a burning passion to take on the international market. In the clutter of multinational companies HFL has a distinguished place. The report starts with the introduction of the company, then the mission and the vision of the organization and its structure covering all the departments. HFL's products portfolio, SWOT Analysis, Pest Analysis and Porter Five Forces Model. Then the next part includes my duties and responsibilities and the assignments and projects they gave the problems and then me and limitations I have founded while doing the internship and then recommendations Internship Assignment: The assignment was to work with a professional organization to get professional experience of the office routines and the working of the organization at the initial level. Learning: I worked their as an intern for the 7 weeks in the marketing department. In the marketing department of HFL I learned a lot of things related to marketing and sales. My boss gave me many assignments, which were related to marketing and sales, and also many other things that will help me a lot when I will start my professional career. Contribution: My contributions in that department were valuable, because of my contributions I succeed in taking the load of work of my boss. Introduction of HFL: This report provides a cavernous insight of the departments and products of the company. www.VU39.com HFL is now one of the fastest growing packaged food companies in Pakistan with an annual turnover of Rs. 9.2 Billion (F2006). It is a private limited company. It started commercial production in July 1987. Due to consistently superior performance, it has achieved undisputed leadership in the liquid packaged milk category with a market share of over 52%. HFL has a very strong brand portfolio consisting of dairy as well as non- dairy products. Haleeb Foods has segmented its product portfolio in 3 leading brands including Haleeb, Candia and Tropico. Haleeb is the flagship brand of the company. Haleeb UHT Milk is available in 5 Sku’s of Tetrapak packaging. Due to its strong positioning of the thickest milk for best tea, it has the highest top of mind awareness and penetration in the dairy industry of Pakistan. In order to increase consumer and trade penetration of the brand, it is also available in Tetra Fino Packaging under the brand extension of Haleeb Dairy Queen. Haleeb has also progressively diversified from UHT Milk to other product categories as well. These product line extensions include Haleeb Butter, Haleeb Yogurt, Haleeb Cream, Haleeb Labban (Drinking Yogurt), Haleeb Asli Desi ghee (Butter Oil), Haleeb Funday Juice Drink, Haleeb Skimz (skimmed milk), Haleeb N'Rish Full Cream Milk Powder & Haleeb Good day Pure Juices. Haleeb Good day is the only range of 100% pure juices in the country with a variety of 6 pure juice flavors. Haleeb Foods, having a Franchise agreement with Cadillac France, launched Candia Double Sterilized Milk in bottle format in April 1999. Candia is also available in the Candia Classic variant which is positioned for Tea. Another recent initiative is Candia Candy Up, which is flavored milk for children. HFL has one of the largest nation-wide distribution networks delivering high quality products, even in the remote areas of Pakistan. With a network of +1100 distributors the company ensures that the product range is available in all the urban and semi urban areas of Pakistan. Furthermore, concerted efforts are being made to develop the rural market as well. HFL has an efficient and resourceful Export department, which has successfully tapped opportunities in foreign markets including Korea, Hong Kong, USA, UK, China, Afghanistan, Bangladesh and the Middle East. In order to provide best quality products to its consumers, HFL has a well- developed supply chain infrastructure. It has heavily invested in a vast network of company operated milk collection centers across the country. HFL has a strict and stringent quality policy regarding intake of raw milk. www.VU39.com It is the only company that conducts 21 rigorous quality tests to ensure that only fresh milk of the highest quality is accepted at the plant premises. These internationally recognized tests are used to check for: a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents. Further, 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 9001 – 2000 (better quality for greater customer satisfaction) • ISO 14001 (environment-friendly operations) HFL believes in using cutting edge processing and packaging technologies to meet consumer expectations of hygienic and high quality food products. It has more than 30 Tetra machines for its UHT milk brands and 5 UHT units with a capacity of producing more than 1 Million Liters of Milk everyday. Keeping in view the volume potential and increasing growth trend of the market, the company has recently inaugurated a second independent UHT plant at Rahim Yar Khan. Haleeb Foods has a highly professional management team with a progressive operating style. The management team comprises of highly seasoned professionals with diverse global experience of managing and developing brands. It can lay claim to be one of the very few Pakistani organizations, which are truly following the model adopted by globally successfully corporations, with clearly defined roles for shareholders and the management team. The company takes pride in being a model national organization delivering international quality products and higher value for money to its consumers. The management team at HFL strongly believes that Pakistan offers enormous potential for food business due to a large consumer base, high acceptance of packaged food, and a growing urban middle class consumer segment. www.VU39.com History: Haleeb Foods Ltd. was incorporated on July 1st, 1984 with a capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited. At that time it had the capacity of producing 80,000 / liters of milk per day having total area of 32 acres. Initially 150 people were employed at the plant. The production process started with UHT liquid milk. The liquid milk was the first product launched in the market, it started its operation in 1985 at that time 20 other dairy plants were also coming in, and all those including MILKPAK were using obsolete technology that was used in EUROPE. Haleeb Plant was the only plant based on the latest technology and the basic idea behind that were particularly dairy foods products. Haleeb is one brand that is toady known everywhere. From November 1989 till December 1991 Haleeb had a joint venture with fries land Frico Domo of Netherlands. This joint was amicably dissolved on account of FFD's change in management in their global strategy. Today as an ISO 9002 certified company, Haleeb is the dominant market leader of UHT milk in Pakistan by capturing 52 % share. Franchise agreement with Canada, a market leader in the liquid milk market in France, was assigned in December 1998. Under this arrangement, the company launched Candia range of value added liquid milk product and also have assess to latest production, technical and marketing know how. Initially company launched different products but some of them could not become successful. As the company's core concern is quality www.VU39.com eventually company abandoned products that were not according to the market needs. In 2002 the company contributed 54% to the country's packed milk market. Problem and Purpose:. This report seeks to look at the operations of Haleeb Foods Limited. What kind if products and services HFL is providing to the consumers, also about the environment in which it is operating. Sources and Methods: • The greater part of information presented in this report has been taken from published material of the company like its broachers and website. The information regarding HFL is taken from the senior managers and the supervisor under whom I am doing my internship. • I tried my level best to write updated and latest information and in the report. • Main Sources of information are: Mr. Rehan-ul-Haq (Marketing Manager) Mr.Jawad Saleem (Group Brand Manager) Mr. Muammar Khakwani (Assistant Brand Manager). Marketing Department of HFL www.haleebfoods.com Limitations: www.VU39.com The most important limitation in writing this report was the nature of the company. Haleeb Food Limited is a private limited doesn’t allow leaking any of its internal information, specially the information regarding the financial position of the company and the policies related to Human Resource Department. Scope: The scope of the report is to examine in detail the operation of HFL. The focus of this report is mainly on the marketing department of Haleeb Foods Limited. Organizational Structure of Haleeb Foods Limited: Managing Director Technical Operations R & D Quality Assurance Marketing www.VU39.com Sales Human Resource Finance Information System Supply Chain Food Services Maintenance Administration Production Quality sessions Quality Control Customer Care Brand Teams Sales Team H.R Functions www.VU39.com HIL Finance Accounting Projects NPD Milk Procurement Purchases / Imports Warehouse Chairman Export Hierarchy of Marketing Department: G.M Marketing GBM MM www.VU39.com NPD GBM GBM ABM ABM ABM BM CCR ABM ABM Vision, Mission, Values and Policies of Haleeb Foods Limited. Vision Statement: www.VU39.com Most Innovative and fastest growing food company offering products enjoyed in "every home every day" 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. Policies: a. Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, affordable, highly nutritional food products through environment friendly processes to our customers while maximizing stake holders' value. b. Meet the requirement of all relevant legislation and regulation related to consumer satisfaction & safety, environment and other applicable laws etc. c. To prevent pollution through controlling levels of harmful emission, effluents and other wastes. d. Contribute to safe and healthy environment for our country. e. Promote mutual trust with customers, suppliers, employees, shareholders and community. www.VU39.com f. Provide all the necessary resources for the continual improvement in quality, safety of our products, processes and environment. Values: • Enterprise • Empowerment • Accountability • Trust • Teamwork www.VU39.com Haleeb Foods product Portfolio: 1.1 Haleeb Milk in Tetra Pack: 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-fats. It is Haleeb Foods premier brand, and the choice of quality-conscious consumers who only go for the best. Packed in easy to open, 6- layered Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life. SKU's • 1500 ml: 8 Packs / carton • 1000 ml: 12 packs/carton • 500 ml: 12 packs/shrink-wrapped tray • 250 ml: 27 packs/shrink-wrapped tray www.VU39.com 1.2 Haleeb Reshmi Haleeb Reshmi pack is long life-packaged milk and offers consumers premium quality milk at an attractive price. Due to its multi-layered packaging material, Reshmi pack not only retains the natural thickness of milk for a longer time, but also protects the milk from light, heat and bacteria. SKU's • 125 ml: 1.25 liters • 250ml: 5 liters • 1000ml: 6 liters 1.3 Haleeb Bottle: The good thing about the Haleeb Bottle is that it is made out of material that is 100 percent recyclable. Feel free to have your own pick according to your need. , Haleeb Milk is all about making your life simpler and easier. The Milk Bottle's convenient screw cap makes it easy to use in our day-to-day life. The aluminum that covers the mouth of the bottle ensures that the milk that reaches www.VU39.com you remain fresh. Approved by CCTPA the Haleeb Milk Bottle has multi protected layers that keep it safe from bacteria and sunlight. SKU's • 1000 ml / 8 pieces per cartoon • 250 ml / 24 pieces per cartoon 1.4 Dairy Queen: Dairy Queen is Haleeb another standardized and homogenized pure UHT Milk with 3.5% fat and 8.9% solid non fats. At an affordable price it has won the hearts of consumers everywhere. It is available in 6-layered Tetra Pak Fino Packaging, introduced for the first time in Pakistan and has 2 months shelf life. SKU's: • 250 ml: 24 pouches per carton • 500 ml: 16 pouches per carton • 1000 ml: 9 pouches per carton www.VU39.com 1.5 Haleeb Gold: The Thickest Milk with Extra Cream. This marvelous product provides all the benefits of the Thickest Milk along with the natural goodness of extra cream. Haleeb Gold with its extra rich creamy taste makes a perfect cup of Tea. It enhances your performance and helps to maintain a healthy, dynamic lifestyle. SKU's: • 1000 ml: 12 packs/carton • 500 ml: 12 packs/tray • 250 ml: 27 packs/tray www.VU39.com 1.6 Haleeb Tea max: In tune with the Haleeb Foods tradition of providing consumers high quality and value added products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is special milk that provides a rich taste in your beverage. It is also available in the unique and delicious cardamom flavor, packed in a 6-layered Tetra Pack Brick Aseptic packaging. SKU's: • 200 ml (plain) pack: 27 packs/carton • 200 ml (cardamom) pack: 27 packs/carton www.VU39.com 1.7 Haleeb Funday: 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). They are packed in a 6-layered Tetra Pack Brick Aseptic packaging. SKU's: • 200ml Pack: 36 Packs /Carton Shrink wrap units • 200ml Pack: 27 Packs/Carton 1.8 Haleeb Good Day: Haleeb Good Day offers consumers a range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavors 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. www.VU39.com SKU's: • 250 ml Pack: 27 Packs/Cartons • 1000 ml Pack: 12 Packs/Carton 1.9 Haleeb Cream: The premium cream processed hygienically from pure fresh milk, Haleeb Cream is luxuriously rich in its thickness and nutritional value. It promises the richest assortment of tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc. Packed in 6-layered Tetra Pack Brick Aseptic packaging. 6 months shelf life. SKU's: • 250 ml: 27 packs/shrink-wrapped tray • 65 ml mini pack: 24 packs/dispenser, 6 dispensers/carton www.VU39.com 1.10 Haleeb Cream with Honey: Haleeb Cream with Honey is an exclusive treat: delicious thick cream fortified with the goodness of pure honey, making a tempting spread on bread. Enjoy it anytime and exude energy and freshness whole day long. It is packed in a 6-layered Tetra Pak Brick Aseptic packaging. SKU's: • 65 ml mini pack: 24 packs/dispenser • 200 ml: 24 packs/tray 1.11 Haleeb Butter: Haleeb Butter is the best natural source of Vitamins A & D for everyone, and by far the ideal way of starting yet another busy www.VU39.com day. It is rich in its taste and revitalizes your energy for a long tiresome day. SKU's: • 20g pack: 300 packs/carton • 50g pack: 120 packs/carton • 100g pack: 60 packs/carton • 200g pack: 30 packs/carton • 1000g pack: 1 pack/carton 1.12 Haleeb Yogurt: Haleeb Yogurt meets the highest quality standards and gives consumer’s unmatched quality, freshness and taste with every spoonful. Offered in 450g, 200g, with freshness seal that keeps the product attributes fresh throughout its life. SKU's: • Plain Yogurt 450 gm: 12 Units/Tray • Plain Yogurt 200 gm: 24 Units/Tray. www.VU39.com • Zera Raita: 24 Units/Tray • Mint Raita: 24 Units/Tray 1.13 Haleeb Asli Desi Ghee: Haleeb Asli Desi Ghee is obtained from pure milk through the traditional procedure of heating butter slowly. Haleeb Asli Desi Ghee is free from all artificial ingredients; it has pure and natural taste and is nutritionally preserved. SKU's: • 0.5 kg pouch: 10 packs/carton • 1 kg pouch: 5 packs/carton • 1 kg tin: 6 tins/carton • 5 kg tin: 2 tins/carton • 16 kg tin: 1 tin/carton www.VU39.com 1.14 Haleeb Labban: Lassi is an age-old traditional beverage in the South Asian continent. Haleeb Labban aims to give its consumers the same satisfying traditional taste of thick Lassi, along with hygiene, convenience and accessibility. Haleeb Labban is the only ready to drink packaged Lassi available in Pakistan. It is available in salty and sweetened variants, packed in a 6-layered Tetra Pack Brick Aseptic packaging. SKU's • 250 ml pack: 27 packs/carton • 1000 ml pack: 12 packs/carton 1.15 Haleeb Skimz Powder: Skimz is a fat-free milk powder, naturally low in cholesterol; yet high in proteins and calcium. There are mainly two types of milk powders, full cream and skimmed. SKIMZ is a skimmed milk powder. Full cream powder contains 28% fat, whereas SKIMZ www.VU39.com contains less than 1% fat. Moreover, the protein and calcium content is higher in SKIMZ as compared to full cream milk powder. It is best suited for weight conscious people as well as those trying to maintain a low cholesterol level. SKU's: • 200 g: 12 skillets/shrink-wrapped tray • 500 g: 12 skillets/carton 1.16 HFL also produces bulk dairy products. Bulk Products Available: • Instant Full Cream milk powder (IFCMP) • Full Cream Milk Powder • Skimmed Milk Powder • Instant Skimmed Milk Powder (ISMP) • Cream • Ghee • Butter www.VU39.com 2.0 Products under the Umbrella of Candia: 2.1 Candia Milk: Candia is Europe's Number One selling milk. Haleeb Foods Limited and Candia of France have joined hands to bring you the highest quality milk. Candia is pasteurized, homogenized, standardized, double sterilized milk. This not only ensures the highest quality, but also the best taste ever. For the first time in Pakistan, Haleeb Foods Limited has introduced milk packed in food grade plastic bottles. These bottles are manufactured from imported materials at Haleeb Foods latest plant and guarantee longer shelf life, highest quality and storage with ease of use. SKU's: • 250 ml Bottle: 12 bottles/carton • 1000 ml Bottle: 12 bottles/carton www.VU39.com 2.2 Candia Classic: Classic times ask for Classic tea, a product by Europe’s No.1 brand Candia. Its richness and taste is bound to add more life to your cup, and it is an ideal choice for real tea drinkers. SKU's • 1000 ml: 12 bottles per case • 500 ml: 12 bottles per case 2.3 Candia, Candy Up: With the backup of Candia, Candy Up has been launched especially for flavored milk drinkers, in chocolate & strawberry flavors to the sheer delight of children. The fact that it comes in a bottle makes up for convenient usage as well. SKU's: • 500 ml: 12 bottles per carton www.VU39.com 2.4 Candia Skimz: Candia Skimz is the only completely fat-free milk with the richness of pure milk. Minus fats, it is an ideal choice for weight- watchers and heart patients. It is also high in calcium content, which prevents osteoporosis. Packed in a 6-layered Tetra Pack Brick Aseptic packaging, it comes with a 3 months shelf life. SKU's: • 250 ml: 27 packs/shrink-wrapped tray 3.0 Products under the Umbrella of Tropico: 3.1 Tropico Juice Drink; www.VU39.com 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, packed in a 6-layered Tetra Pack Brick Aseptic packaging. SKU's: • 1000ml Pack: 12 Packs/Carton • 250 ml pack: 36 packs/carton • 250ml Pack: 27 Packs/Cartons 3.2 Tropico Nectar: Juices play an important role in the functioning of our body, have many benefits associated with them, and help you achieve the desired healthy way of life. Tropico nectar is another product from the house of Haleeb Foods Limited, which is 100% pure nectar, available in four sumptuous flavors including Red Blood Orange & Kinoo, Mango, Apple and Kinoo. Haleeb Tropico is also the only brand that is offering Red Blood Orange & Kinoo Juice - that is so deliciously different that you will want to have it in your house, all year long! www.VU39.com SKU's: • 250ml: 27 Packs/Carton • 1 Ltr: 12 Packs/Carton Year of Launch of the Products: 1986 Haleeb Milk 1997 Haleeb Asli Desi Ghee Haleeb Cream, Candia Skimz Milk Powder 1998 Candia Milk, Candia Skimz Liquid Milk 1999 Tropico Juice Drink, Haleeb Dairy Queen 2000 Haleeb N'Rish Instant Full Cream Milk Powder 2001 Haleeb N'Rish Fortified Instant Full Cream Milk Powder 2002 www.VU39.com Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain 2003 Yogurt, Haleeb Lassi Drink Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink, Candia 2004 Candy' Up Flavored Milk Haleeb Cream With Honey, Haleeb Tea Max with Cardamom, Haleeb Labban, Haleeb Good Day(Mix Fruit, Red Grapes, Mango 2005 Pineapple) Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Nectar 2006 SWOT Analysis: STRENGTHS: • No 1 dairy company. • Growing Sales and profits. • Major shareholder in the food industry of Pakistan. • Efficient Distribution networks through out the country. • Quality Products. www.VU39.com • Environment Friendly. • Socially Responsible Company. • Haleeb Food's products enjoy strong brand image and market pull. • Innovative and constantly growing product line. • Sales force is the major resource strength in terms of physical resources of the company. • Marketing strategies established by the company are innovative and lure customers. • Financial, marketing and sales strategies are formulated by gauging the customer demands. • Periodic research carried out to judge market trends. • Highly sophisticated plant and equipment. • Qualified work force. • Focus on research and development. • First and the only dairy company in Pakistan to get ISO 9002 certification. www.VU39.com WEAKNESSES: • Relatively a small and local company in comparison to its rivals. • Dependence on 3rd party for supply of milk. • No credit sales. • Low sales margins due to highly value added products. • They cannot launch many of its expensive international brands due to the lower income groups. • Selective investment due to uncertain economic and political conditions. • Feasibility of new products needs to be analyzed, e.g. Candia Drinking Yogurt was launched some years back but it failed because no customer demand exist it. • The packing line installed for N'Rish has a higher capacity than the actual demand of the product, resulting in higher overhead costs for the product. • Inadequate marketing. • Low promotional activities. • Comparatively weak distribution system. www.VU39.com OPPORTUNITIES: • Pakistan is the seventh largest producer of milk in the world with annual output of over 22 billion liters. • There are substantial growth opportunities considering the average yield of Pakistani animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and USA. There are nearly 20 million milk producing animals in the country, mostly in Punjab (80%). • The overall milk market in Pakistan is 20 billion liters, out of which processed milk contributes only 3 million liters. Haleeb Foods along with other processed milk business contribute only 2% to this large market. • Haleeb Foods' has expanded its product range by launching milk in Tetra Fino Packaging. • Credit policy can be adopted to increase sales. • HFL can export to others countries. • CDL has been changed to HFL, so this change in name can help them to attract foreign customers. • HFL can go for related diversifications by producing pure juices and flavored yogurt. www.VU39.com • HFL can go for joint venture with other companies to attract the market share. • Entering in to the market of baby cereals, which will help them in increasing their revenue. • Launching cheese would also beneficial for them to create the brand awareness. THREATS: • Competition with Nestle, Engro Foods. • Effect of Seasonal ties upon sales. • Dependency on contractors for supply of milk. • Price fluctuations due to rupee devaluation as raw material are imported. • The uncertainty of economic conditions poses a great threat. • The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. • Price sensitive people. • Milk man (Gawalas) providing non branded milk in homes. Pest Analysis: www.VU39.com POLITICAL CONDITIONS: The political conditions are not very stable in the country, but this does not directly influence the trends and spending patterns of the customers. There are no restrictions or barriers on the growth of this industry. So the political conditions are favorable fir this market because food and dairy chain products are consumer goods and they have to purchase it in any condition. ECONOMICAL CONDITIONS: The economical conditions are not very favorable and the economy is facing problems, but it is nit directly influencing buying power of consumers. If the country is out of its current problems, it will further boost up growth of this industry, as people will feel more secure economically and it will further increase the attractiveness of the market. SOCIAL CONDITIONS: The social patterns are changing in the country, as the world is becoming a global village, and mutually share and accept patterns. People are becoming more attractive towards the branded products. It is becoming fashion and young generations as well as the children are getting more attracted towards this industry. People are moving towards branded food / dairy products due to hygienic reason. TECHNOLOGICAL CONDITIONS: www.VU39.com High technology is the basic requirement of dairy and food industry. The companies that are using latest technology have some cost benefits over the companies, which are not using high technology. The key to survival for companies in this industry is using high technology for quality and cost purposes. LIFE CYCLE (HALEEB FOODS Ltd.) Management of HFL claims that its products are still in the growth stage. Even though the products have been in the market for more than decade and it is considerably a long time period for any FMCG to compete its growth stage. Porter Five Forces Model www.VU39.com THREAT OF NEW ENTRANTS (LOW). • Strong customer loyalty. • Large capital is required. • Government regulatory policies. • High marketing expenditure. • Brand Preference. BARGAINING POWER OF SUPPLIERS (LOW). • High number of suppliers. • Importance of volume to suppliers. BARGAINING POWER OF BUYERS (HIGH). • Switching costs is low • Brand loyalty is high. • Switching options are more. INTRA INDUSTRY RIVALRY (HIGH). • Diverse Competitors like Nestle, Engro Foods, Noon Group, Shezan etc... • Industry growth is high www.VU39.com • Difficult to take competitive advantage. • Brand differentiation. • Exit barriers are high. • Economies of scale. THREAT OF SUBSTITUTES (HIGH). • Loose products in the market are the major substitutes. THREAT OF NEW ENTRANTS LOW (+) Intra Industry Rivalry BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES www.VU39.com BARGAINING POWER OF SUPPLIERS HIGH (-) LOW (+) HIGH (-) HIGH (-) www.VU39.com Internship Assignments and Duties: The duration of my internship was from June 25, 2007 to August 13, 2007. In that time period I had worked in marketing department of Haleeb Foods Limited. I was assigned different duties and assignments, the detail these duties and assignments are given below. Marketing Department Internship Program For 7 weeks www.VU39.com Marketing Practice Orientation Activity Details Time Duration New Product NDP Brief,” out of box” ideas for new 1day Development product with rationale How to write a good research from given Research Brief Writing 2 days objectives How to write a good creative brief from Creative brief writing 2 days given objectives Projects Marketing research CLT or consumer survey 2.5 weeks (including project (consumer) for any HFL product. To preparation of www.VU39.com compile presentation or questionnaire, field comprehensive report. work, data tables & result Market Orientation As per objective given At least 2 weeks (Retail) by brand team. Report. My Product review, understanding of HFL positioning, 2 days brands. recommendation A compilation of the Intern’s experience at Final internship report 3 days for final report. HFL including all projects reports, www.VU39.com 1. Research through survey on Imported juices in Pakistan LAHORE REGION Objective: The objective of this research is to get the information about the imported juices available in the market & study their different attributes like brand name flavors, serving size, price & categories. Area Covered: The stores spread over different areas of city like Johar town, Faisal town, Town ship, Model town, Garden town, Wahdat road, Gulberg, Defence, Shadman, Mall road and Cantonment. Sample Size: Twenty-six departmental stores were selected for this research. Target Market: Most of areas belong to upper & upper middle class. Category of Juices: The imported juices belong to three categories namely: 1. Pure juice in which there is no sugar, preservatives & artificial color added. It is 100% juice. 2. Nectar in which there is 30-50 % fruit pulp. 3. Still drink containing 10% pulp & remaining part include sugar, preservatives & artificial colors. www.VU39.com MAJOR FINDINGS: After going through data the major findings of this study is as follow: • Availability of Malee juices is 98%. • Availability of Lacnor is 60%. • Malee juices mostly available in 1-liter tetra pack but on some stores also offered in tin pack 240 ml. • Consumer generally buy traditional flavors like apple, orange, mango & pine apple but now in last few years the trend is also towards new flavors like lychee, black current, berry & fruit cocktail etc. (reference Victoria store). • Big stores in city like Alfateh, HKB consumer mostly buy Dew land, Safa, Caesar. • Price variation is also there like: a) Malee ranges between Rs 125-130. b) For Caesar it ranges from Rs 88 to 90. c) Dew land ranges between Rs 88-100. d) Lacnor ranges between Rs 125-130. www.VU39.com LAHORE DEPATMENTAL STORES ISLAMABAD/RAWALPINDI REGION Area Covered: The stores spread over different areas of twin cities. In Islamabad the locations were Sectors G-6, F-6 (Super Market), F-7 (Jinnah Super), F-8, F- 10, and G-10 and in Rawalpindi areas were Sadder, Chakklala scheme 3. Sample Size: Thirty departmental stores were selected for this research. Target Market: www.VU39.com Most of areas belong to upper & upper middle class. Category of Juices: The imported juices belong to three categories namely: • Pure juice in which there is no sugar, preservatives & artificial color added. It is 100% juice. • Nectar in which there is 30-50 % fruit pulp. • Still drink containing 10% pulp & remaining part include sugar, preservatives & artificial colors. MAJOR FINDINGS: After going through data the major findings of this study is as follow: • Availability of Malee is 73%. • Availability of Safa is 70%. • Availability of Lacnor 60%. • Consumer generally buy traditional flavors like apple, orange, mango & pine apple but now in last few years the trend is also towards new flavors like lychee, black current, berry & fruit cocktail etc. • People in two cities mostly like pure juices & nectars. • In Islamabad people also consume Dew land, Almarai & Ceasar. • Price variation is also there like: a) Malee ranges between Rs 120-130. www.VU39.com b) For Safa ranges from Rs85 –100. c) Dew land ranges between Rs 88-100. d) Lacnor ranges between Rs 75-95. e) Ceasar ranges between Rs 85-100. ISLAMABAD/RAWALPINDI DEPATMENTAL STORES 2. Marketing practice Orientation: During my stay at Haleeb Foods Limited my supervisor gave me different office assignments involving marketing practice orientation like 1. New Product Development brief. www.VU39.com 2. Research brief writing. 3. Creative brief writing. 4. Brand identity model. The details and format of which are attached in the following pages. New Product Development Brief EPD (Existing Product NPD (New Product Development) Development) c) Formulation Analysis or a) New Formulation [ ] Improvement [ ] b) New Primary Packaging [ ] d) New SKU or variant [ ] e) New Secondary Packaging [ ] f) Squeeze (Cost Savings) [ ] g) Pack Design Changes [ ] h) Retail [ ] Bulk [ ] Others: Project title CARBONATED DRINK Project No: Date: June 19, 2007 www.VU39.com Timeline: Immediate [ ] Longer Term [ ] Priority: HIGH [ ] MEDIUM [ ] LOW [ ] To be completed in full and in duplicate by the assigned brand team. A) PART Attach additional info if applicable. B) Agreement is to be acquired from the I: assigned NPD Team. C) Forward to GMM and MD for approval. BACKGROUND & OBJECTIVES: As HFL has history of being innovative & pioneer in dairy product its time to enter new arena like carbonated drink & cash in Haleeb good image to give customer satisfaction. To enhance strategic business units, there is large consumer base. Last but not the least high acceptance of packaged food in urban based areas. MARKET ASSESSMENT & COMPETITION: General: Pepsi & Coca cola are two main competitors, while Pepsi is market leader. Consumer trend is to have drink for refreshment & also use with food items. Very popular among youth. People develop a psyche that guest should be served with soft drinks. the substitute products are juices, squashes etc. market volume size is 100 million. End Consumer Price & Taste/Packaging profile for competitive/ substitute product: 11 Rs for 250 ml, 40 Rs for 1.5 lits www.VU39.com Taste/Packaging profile for competitive product: Pepsi a bit sweeter & less carbonated gas. Coke has strong taste a bit harder. Packaging profile for Pepsi Coke is same like both comes in 250ml.500ml& 1.5 liters bottle. TARGET GROUP & REQUIRED PRODUCT PROFILE: Target Group: Youth (15-25yrs) because they are more receptive to change. Key Consumer Benefits: Comes in different flavors (strawberry, orange, lemon), low calories. Required Product Profile: Same as current MARKET RESEARCH PLANS: Type of Research: Quantitative research www.VU39.com Quantity required: different schools & colleges (let say 5000 consumers) Date by which prototypes required for consumer testing: 1 Sept, 2007 TARGET LAUNCH DATE: 1 Nov ,2007 COST PARAMETERS GUIDELINES: For 250 ml Rs 10. For 500 ml Rs 18. VOLUME ESTIMATES: Volume and Value Estimates (for 12 month period- including launch volume): 1.6 million (10 million of 250 ml & 0.6 million of 500 ml www.VU39.com Test-Market Launch volume required: 60000 of 250 ml & 45000 of 500ml Packaging: -- 250 ml & 500 ml plastic bottle, transparent, label color brown shade, bottle cap brown for cola drink & for fruits flavors like apple, strawberry, lemon color of label & cap varies Strawberry pink color Lemon green color Apple yellow color To be completed by the GM-Operations and discussed and agreed to by groups PART II: directly involved including QAD, Purchase, etc. www.VU39.com TECHNICAL FEASIBILITY: (including comments on any CAPEX required, available literature, guidelines, samples, know-how) LIMITATIONS: preservatives permitted, low calories TIMELINES: four month for research time Project start: 25 June 2007 Project ends: 25 Sept, 2007 NPD TEAM AGREEMENT: Name Signatures Date In Date Out Marketing: ABM MM R&D: AKB QA: AQ Production: AH AD SCC: MSB Finance: SMS www.VU39.com Sales: RHU Marketing: LAC MD C.c.: Assigned Brand Team, Assigned NPD Team, General Manager Marketing, Managing Director Note: In case of denial, this document is to be filed with the GM-Marketing. MARKET RESEARCH BRIEF CATEGORY BRAND PRODUCT DATE DAIRY: UHT treated Haleeb Flavoured milk July 26, ‘07 CONTEXT We intent to launch a new product in a market i.e. flavoured milk. For this purpose we want to have a fair idea about consumer perception about the tetra pack flavoured milk & most importantly the target consumers. OBJECTIVES MARKETING RESEARCH What business decision Primary Information need Other useful information are we trying to make? Our motive is to diversify our Brand We need the following product line from UHT perception www.VU39.com treated milk to flavoured milk information: based on so that give full value of packaging. Flavoured milk money to consumers .to build consumption Inputs on strong brand image in minds habits like where, various of consumers. Thus we want when, how much, attributes. to obtain consumer insights how many times, to help in determine launch Registration who, what. of flavoured milk, right target of brand name. market& positioning. Consumer perception towards flavoured milk like positive & negative thing about product. Their liking of different flavours. Satisfaction level w.r.t. Current variant of flavoured milk in market. Kinds of flavours children most like. Their feeling about current brands available in the market. www.VU39.com METHODOLOGY TARGET MARKET TIMING BUDGET Housewives:A,B urban income groups(KHI.LHR) age 25—35 yrs, children: school going Current user of COUNTRY, Top lines July 10, ‘07 PAKCOLA,IMPORTED BRANDS etc Report July 20,’07 Moderate consumer atleast 2-3 times a week as well as high consumption of product 5-6 times a week. Performance Standards The minimum performance standard for acceptance Not applicable DETAIL OF INFORMATION SOUGHT Not applicable Not applicable www.VU39.com SIGNATURES For Haleeb Foods Limited For Market Research Agency HALEEB ENERGY DRINK Launch Advertising Brief BACKGROUND: Consumers purchase energy drink mainly for themselves. They belong to A & B SEC. Energy drink has been recognized by athletes, sportsperson, busy professionals, active students & long distance drivers all over the world. With the increase in literacy rate & exposure to electronic media there is big market for energy drinks. Also government intensions to improve the infrastructure of sports in country & emphasis on fitness of players an effective energy drink is the order of day & also in coming age. Haleeb energy drink will be launch in December 2007. With the campaign focusing on “performance enhancer”. So far the competitors in this business comprises RED BULL, RED OX & other imported brands like ENERGRADE etc. www.VU39.com MARKET OBJECTIVES: 1. Achieve brand awareness level to 20% among target consumer by April 2008. 2. Achieve market share of 15% by April 2008. 3. Establish clear brand differentiation versus leading competitive brands. REQUIREMENTS: 1. Brand slogan for use in advertising campaign (based on BIM). 2. TV concept (please see execution guide lines). 3. Out door designs. (60” x 20”). 4. Print Ads (Urdu & English). 5. POP Poster design Shelf talker Mobile design Leaflets. EXECUTIONAL GUIDELINES: 1. For TV we would like to focus on 20-30 sec shot spots, involving on sports celebrity endorsement,. Like tennis star ESAM-UL-HAQ. www.VU39.com 2. We would prefer concept that celebrity playing his respective field or doing some adventurous stuff like mountaineering, but it is not mandatory. 3. Consumption shots must be a par of the execution. 4. Brand identity model BIM should be followed religiously. 5. 35 mm format. KEY TIMELINES: ACTIVITY RESP. TARGET DATE 1 Brief to agency HFL 2 Acceptance of brief by agency RED 3 Campaign presented by agency RED 4 Adjustments RED & HFL 5 Final campaign RED 6 TVC shoot RED & HFL www.VU39.com 7 Rough cut of TVC RED 8 Final artwork for campaign RED 9 Final cut of TVC RED 10 Launch campaign RED & HFL SIGNATORIES: For Haleeb Foods For Advertising agency Name ________________ Name ________________ Brand as Product Brand as Org. Brand as Person Brand as Symbol HALEEB ENERGY DRINK - Brand Identity Model - DESIRED BRAND ESSENCE www.VU39.com HALEEB ENERGY DRINK acts as Performance Enhancer & Bolster consumer mentally & physically. s - Different packaging - Umbrella of Haleeb. - Strong. - Vibrant. - Zealous. - Influential. - Hard core. - Innovative. - Vitalize body & mind. - Performance enhancer. - Sizzling taste. - Gives instant energy. CORE IDENTITY Vitalize body & mind. Performance Enhancer. www.VU39.com Instant energy provider. BRAND POSITIONING STATEMENT To SEC A & B urban-based household including sports lovers, busy professional who want instant energy after daily hectic activities. CORE TARGET CONSUMER SEC A & B household in urban areas requires performance enhancer agent. They are brand conscious & want to excel in every walk of life. BRAND CAPSULE A panther on a pack. 3. Store Intercept Monitoring Survey: The objective of this survey is to monitor the in store activities, relating re launch of Good Day Juices. The survey comprises for one week and the major responsibilities assigned to me were as follow: • Monitor & observe in store activities of promoters & make sure they performed their duties well. • Check the availability of stock. www.VU39.com • Incase of shortage communicate it to sales department for necessary action. • Also monitor floats activity of Good Day juices and at the end of day report to my supervisor. 4. Survey on Outcome of Good Day Campaign on Sales: The objective of survey was to examine effect of Good day Juices campaign on sales. By getting information from shopkeepers regarding sales before & after campaign (June – July) and obtained valuable suggestion from them one gets a fair estimate about success of promotion activities. Area Covered: • Total of 49 shops were visited in the areas of Muslim town, Allama Iqbal town, Model town, Faisal town, Johar town, Cantonment, Defence, Cavalry, Shadman, Main Boulevard Gulberg, Garden town, & Liberty market. Main Findings: State of Sale Positive 51 % No real change 30.61 % Negative 8% www.VU39.com Comments: Following are comments & suggestions given by shopkeepers. Some shopkeepers said that after store activity has completed customers don’t pick product themselves as during activity promoters persuade customers to buy good day juices. Some shopkeepers annoyed by the shortage of supply. Many said that demand and awareness is gradually developing for the brand. In HKB liberty market old packaging of good day was displayed. In Haidery store & Shezan bakers’ demand of 250ml pack is higher than 1-liter pack. Most of shopkeepers support good day campaign & they want more events like this in future. www.VU39.com Some of shopkeepers want more skins for advertisement as Nestle & other competitor brands offer them skins in great quantity. According to shopkeepers people don’t buy Good -Day because it is expensive. EFFECT OF GOOD-DAY CAMPAIGN ON SALES 6. Market Orientation: During my internship period at Haleeb Foods, for practical experience my boss assigned me to do market survey. To know about the perception of Haleeb Foods Brand in their mind & to check the availability of product over there. Daily I used to visit numerous shops, to find out whether shop keeper facing any problems with the distribution & about the off take of the cheese & yogurt. The area of Lahore which I had visited include Muslim town, Garden town, Iqbal town, Model town, Johar town, Faisal town, Gulberg, Defence , Shadman etc. These areas have A+, A, B+ stores in which Haleeb Products & other competitor’s products were available. The time duration of market visits was 2- 3 weeks. After the survey I prepared report & gave it to my boss I also got chance to visit Islamabad/Rawalpindi to check the availability of Candia flavored milk & Good day juices. www.VU39.com Problems & Limitations: • No separate computer was available for internee so it took more time for data entries and wait for the computer to be free. Also getting the data transferred from one computer to another was a big problem that arose almost daily. • The vendors and suppliers also give problem it was difficult to get work done from them. They always come up with reasons of not delivering the required material and I had to give them consistent follow up calls to remind them delivering the required material on the proper time. • The advertising agencies also give problem and it was also difficult to get the designs from the Advertising agencies on the deadlines. • No internet facility for the internee. Conclusion: This internship proved to be very helpful for me. I got a lot of knowledge and also the practical aspect of life. It was my first experience, which was obviously very tough, but it will be very beneficial for in my coming future. www.VU39.com As a whole HFL is a good organization to work in but there are certain departments that need improvements. It is surviving in the FMCG’s sector with some strengths and weaknesses. I am of the view that if the management of HFL wants to show the same results in the future that it should have to take some decisions before time, because in the 21st century only those organizations can survive who are utilizing all their resources efficiently and effectively. Recommendations: • Haleeb Foods Limited should also allocate a healthy budget for the advertising of its products. • HR Department of HFL should introduce HRIS to increase the efficiency of the company. • The co-operation among the different departments of HFL should also improve it will lessen the bureaucratic cost and increase the efficiency of the company. • The activities like customer satisfaction day should be performed on regular basis so the company should know about the feedback of the customers regarding the products and image of the company. • The shopkeeper complains that HFL don’t provide replacement to the expired products so they should provide proper replacements to the shopkeepers to enhance the image of the company. www.VU39.com • Haleeb Foods Limited should improve its distribution system specially the retailers are not happy with distribution of Haleeb Milk.