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Haleeb Marketing Management

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									ACKNOWLEDGEMENT
All praises to Almighty Allah who is “THE CREATOR” of whole of the universe and admires to our Holy Prophet Muhammad (Peace Be Upon Him) who taught us every thing of this life and the life thereafter. Now it is our responsibility to convey the “WORDING OF SUCCESS” to whole of the Ummah. As it was indicated in the last Address of our Holy Prophet (Peace Be Upon Him). And the graves of “FELLOW BEINGS” are the proof of the completion of this responsibility. And we are also thankful to our respected teacher Mr. Zubair Ahmad Mirza. He gave us the complete knowledge of the subject. The knowledge he gave us and the whole class would be helpful through out our practical life.

CONTENTS

EXECUTIVE SUMMERY
WE HAVE CHOSEN THE PRODUCT HALEEB MILK BY CHAUDARY DARIES LIMITED (CDL). IN REGARDING THIS REPORT, WE MADE A COMPREHENSIVE RESEARCH REGARDING HALEEB MILK. THROUGH OUR RESEARCH WE HAVE CONCLUDED THE BCG METRIX, ANSOFF MATRIX, PRICES, AND PROFIT MARIGNS OF RETAILERS,WHOLE SELLERS AND DISTRIBUTORS ,COMPETITION ENVIRONMENT, BASED ON OUR REALISTIC ASSUMPTIONS.

QUALITY OUR 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

MARKET SHARE
The total share in the market of packed milk is 21%. Out of these 21% the shares of HALEEB, MILKPAK and OTHERS are as follows: HALEEB MILKPAK OTHERS 42% 44% 14%

COMPETITION
Haleeb faces different competitors at different level, which are as follow:

HALEEB’S MARKETING COMPETITORS
EXTERNAL COMPETITORS
MilkPak is the major competitor of Haleeb. Both the companies have a cutthroat competition with each other. Even though MilkPak was originally positioned for drinking purpose but now it has also started positioning for tea which is a strange move and a definite gamble because the difference between the market shares of Haleeb and MilkPak was not much when MilkPak had been positioned for drinking. It is very difficult to understand that why NESTLE has tried to temper the MilkPak’s initial positioning.

HALLAH.
Hallah is providing pasteurized milk without tetra packing. In this way they have avoided the high packaging costs of tetra Pak and still they are providing quality milk, which is better than Guwallas’ milk quality. Customers can have Hallah’s pasteurized milk at a price, which is half of Haleeb’s price. Hallah’s management has started opening its outlets, which are growing quite rapidly. Interesting thing about these shops is that a company does not pay neither for the shop nor for the chiller but anyone who is interested in having a Hallah’s agency arranges for the shop himself and also pays for the chiller. As Hallah is providing pasteurized milk at a very low price than Haleeb so in the next three years it might be a direct threat to Haleeb. After MilkPak and Hallah there is no third company, which can be compared to Haleeb.

GUWALLAS’S MILK.
One interesting thing to know is that CDL’s management still considers Guwalla as its biggest competitor and as out of total milk market only .21% is of branded milk, CDLs’ management is focusing on those segments of the market which are still using

INTERNAL COMPETITORS
The internal competitors of Haleeb are Dairy Queen and Candia.

DETAILS
Access to distribution channel: Milk is the commodity that requires intensive care. Handling of milk on its way till end-user requires great care. Distribution of Packed milk is a challenging job and distributors are reluctant to take distribution of those brands, which lack buyer recognition. A network of retail dealers may have to setup from scratch. So CDL enjoys its strong hold on the distribution network of Haleeb, as access to an effective distribution channel is a barrier for new entrants.

Brand preference: Once the brand image is formed, than it is difficult for any other firm to introduce new brand into the market so unless and until it has low price and superior quality. As in packed milk only few quality brands are available (Haleeb, Candia and MilkPak), so people will prefer these brands on the other newly introduced brands.

Government regulatory policies: It is a Barrier entry b/c different licenses and permits are required from those registered companies which want to deal in eatables and especially on national level.

TARGET MARKET (MARKET SEGMENTATION)
CDL has divided the market on the basis of usage. Different segments who use milk for different purposes i.e. for tea, for drinking, for dishes etc. out of all these segments Haleeb serves to those people who use milk for making tea. This segment is largest if you segment the market on the basis of usage. Serving a definite segment gives many advantages to Haleeb. First of all recourses can be directed towards promoting the product to a definite portion of the population. Secondly, in our opinion it is quite easy to generate brand loyalty when you give the impression to the people that you are catering to their particular need. Another favor that Haleeb has gained from this segmentation is that tea is becoming a need rather than just a want of the people of our country so when Haleeb is being promoted especially for tea making purpose, than it gives an impression to the people that use of Haleeb is a better way of serving a need. One thing that is good about tea is that it is not a seasonal drink and people drink tea 12 months an year. So automatically Haleeb’s demand is not seasonal. The main target of HALEEB are A and B class and they are struggling for C class.

POSITIONING
Haleeb positions itself on the basis of thickness. CDL has created an image in the customers’ mind that as it is thicker than any other branded milk so it makes more cups of tea. The strategy of positioning has played the major role in the success of Haleeb. Haleeb was not positioned this way right from the day one. The company was started in 1986 and in 1993 they came into the media and they started positioning themselves on the basis of thickness in 1995. The affect of this positioning started appearing in 1996 and in 1996 onwards Haleeb became the market leader. When we analyze Haleeb’s promotional efforts than we come to realize that these efforts are very focused and organized and CDL is quite clear that the advertising will mainly be used to position the product.

ADVANTAGES OF THIS POSITION:
As Haleeb positions itself on the basis of thickness and this thickness mainly helps in making more tea than any other branded or non-branded milk so when ever the customers think of making tea then in their perception Haleeb is the ideal milk for this purpose. Tea is one of the most popular drinks of the region. It is not only a drinkable but also a stress reliever so the increasing stress in the society (which is due to number of factors like high inflation rate, unemployment rate, etc) the consumption of tea is likely to grow in Pakistan and which would automatically give boost to Haleeb’s sale.

BRAND NAME
Haleeb, which is the Arabic name of Milk. It is also the name of CDL’s cream.

BRAND SIGN:
Daisy Flower

PACKAGING:
Totally hygienic packing means, Aseptic packing which protects the milk from Bacteria, light and extreme temperatures and provides a longer shelf life for its ultimate consumers and customers.

ANSOFF MATRIX
The Ansoff matrix defines Haleeb at market penetration stage. Haleeb already has a nationwide distribution and it is in the market since 1984 and now the company’s management is trying to make its distribution more intensive. Usually in market penetration the companies try to reduce the prices in order to extend their market shares but CDL’s management is not trying to do that (reason has been explained in the pricing section). They are trying to penetrate by making Haleeb’s availability more effective and efficient.

HALEEB AT BCG MATRIX
The CDL’s management believes that at the BCG matrix, Haleeb falls at STARS. High growth, high-share products, and high cash flows characterize products of this category. Haleeb has got 42% share in the market and the industry is growing at a 15% annual rate and the cash flows are certainly high.

PRICE LIST WITH THE MARGIN OF 5 RETAILERS
RETAILER 1 Brand Quantity (liter) Haleeb ¼ ½ 1 Price (Rs.) 9 16 30 Margin for Retailers .50ps(paisa) 0.65 1.5

RETAILER 2 Brand Quantity (liter) Haleeb ¼ ½ 1 Price (Rs.) 9 16 30 Margin for Retailers .50ps(paisa) 0.65 1.5

RETAILER 3 Brand Quantity (liter) Haleeb ¼ ½ 1 Price (Rs.) 9 16 30 Margin for Retailers .50ps(paisa) 0.65 1.5

RETAILER 4 Quantity Brand Haleeb (liter) ¼ ½ 1 Price (Rs.) 9 16 30 Margin for Retailers .50ps(paisa) 0.65 1.5

RETAILER 5 Brand Quantity (liter) Haleeb ¼ ½ 1 Price (Rs.) 9 16 30 Margin for Retailers .50ps (paisa) 0.65 1.5

So we conclude that after this survey that there is no difference in profit margin of retailers in different area.

Retailer 1. Belongs to Class A (Defense, , Cannt ) Retailer 2. Belongs to Class B (Garden Town, Model Town) Retailer 3. Belongs to Class B (Johar Town, Faisal Town) Retailer 4. Belongs to Class C (Faisal Town, Allama Iqbal Town ) Retailer 5. Belongs to Class D ( Town Ship, Bhati, Lohari….)

SUPPLY CHAIN OF HALEEB MILK IN PAKISTAN
Haleeb’s distribution network comprises of following channels:

Whole seller & Retailers

Consumer

NOTE:
OVERALL DISTRIBUTOR OR WHOLE SELLER MARGIN RETAILOR’S MARGIN 3% 3.5%


								
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