Haleeb Milk Reseasrch and Project Report by umairsheikh2002

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									Research Project Organization: Haleeb Foods Ltd Brand: Haleeb Milk

Research project submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (Executive Program) By Kabir Hussain Imran Nawaz L1S05MBEX0018 L1S05MBEX0015

Faculty of Management Studies University of Central Punjab Lahore, Pakistan. Semester 2006
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Research Project Organization: Haleeb Foods Ltd Brand: Haleeb Milk

Research project submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION

By Kabir Hussain Imran Nawaz L1S05MBEX0018 L1S05MBEX0015

The Research Project of Kabir Hussain and Imran Nawaz is approved

Prof. Kashif Ud Din Khan Advisor Research Project Cell

Prof. Abdul Rauf Co-Assessor Research Project Cell
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Acknowledgement
In the name of Allah who is most merciful and beneficial We bow our head before “ALMIGHTY ALLAH” in gratitude, who blessed me with sound health, talented teachers, and sympathetic friends and sufficient opportunity to complete our esteemed research project report This piece of research is a team effort and we owes a debt of gratitude all those who helped in field data collection. We would like to take this opportunity to sincerely thank Ms. Hassan Wajhat (Brand Manager) and staff of Haleeb Foods Lahore for their sincere co-operation and time for conducting our survey. We also acknowledge the efforts of media advertising agency of Haleeb for providing us the information on general loopholes in operations and also sharing with us classified information. In the end we dedicate this report to our parents who have supported us throughout our EMBA program and sincere thanks are due to a number of people who contributed to the success of this work especially Prof. Kashif Ud Din & Prof. Abdul Rauf who has worked very hard on this project to make it a memorable experience for us.

Regards,

Kabir Hussain Imran Nawaz

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Abstract
Haleeb Foods Limited, the largest Dairy Processing unit in Pakistan, is the first dairy unit to acquire ISO 9002, HACCP and ISO 14000 certification. Haleeb Foods is committed to satisfy its consumers with wholesome and healthy food products of the highest international standards. 1984  1987  1989  1991  1998  2004  2005  After conducting the research our findings are that Haleeb Foods has to think about the following factors so they can target the particular selected market. High Price  Preservation problem  Awareness problem  Availability  Following are few recommendations: Haleeb Foods has to focus on this particular market  segment and do some steps to capture the market Commence production at new “RYK” Plant Changed corporate name to “Haleeb Foods” Entered in franchise agreement with Cedilac, France Discontinued the partnership with Friesland Frico Domo Established equity partnership with CC Friesland Started sale of packaged milk under “Haleeb” brand Founded as “Chaudhry Dairies”

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through new innovation and launch Haleeb milk in new cost effective packing instead of tetra pack. Advertising campaign should focus on awareness of  consumer towards quality. If it is possible provide chiller to shop owners so that it  helps them in preservation of Packed (Haleeb) milk. If its is possible make some model tea shop for Haleeb  milk and try to create awareness in rural areas through this strategy. Focus on direct marketing activities like free trial,  discount price.

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Table of Contents
INTRODUCTION OF HALEEB FOODS......................................................................9 MISSION ..........................................................................................................................9 VISION .............................................................................................................................9 VALUES ...........................................................................................................................9 HALEEB FOODS LIMITED- HISTORICAL PERSPECTIVES..............................10 OTHER PRODUCTS AND THEIR DATES OF LAUNCH ARE AS FOLLOWS: .............................11 EXECUTIVE SUMMARY ............................................................................................13 CONTRIBUTION TO OTHER SECTORS: .............................................................................15 THE ENVIRONMENT:......................................................................................................15 BACKGROUND:............................................................................................................16 OBJECTIVE:....................................................................................................................16 PRODUCT CONCEPT: ......................................................................................................16 MARKET SIZE: ...............................................................................................................16 MILK COLLECTION AREA .......................................................................................17 TABLE : HFL MILK COLLECTION AREA .........................................................................17 INTERNATIONAL QUALITY AND ENVIRONMENT CERTIFICATION ..........17 A. ISO 9001-2000 .........................................................................................................17 B. HACCP ....................................................................................................................17 C. QUALITY ASSURANCE...............................................................................................18 YEAR WISE MILK PRODUCTION IN PAKISTAN ................................................18 PROCESSOR CAPACITY OF VARIOUS MILK PROCESSING COMPANIES ..19 MARKET SHARES AND PRICES FOR MILK TYPES .............................................................19 TRADITIONAL MILK SUPPLY CHAIN ...................................................................20 EXISTING MILK SUPPLLY CHAIN .....................................................................................20 THE ORGANIZATIONAL SET UP OF HFL.............................................................21 MARKET REVIEW (CURRENT YEAR) ...................................................................22 HFL VS. INDUSTRY ........................................................................................................22 SKU Wise planned Growth @ 22% ..........................................................................22 INDUSTRY VS. HFL - ANALYSIS FOR JULY F 2006..............................................23 OVERALL MARKET SHARE ............................................................................................23 AUDIENCE SEGMENTATION ...................................................................................24

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MARKET REVIEW.......................................................................................................24 SITUATION ANALYSIS ....................................................................................................24 A) Market/Industry situation.....................................................................................24 B) Product Situation .................................................................................................26 ADVANTAGE ATTRIBUTES OF HALEEB MILK ..................................................27 COMPETITIVE SITUATION ......................................................................................28 1) IDENTIFYING COMPETITORS: .............................................................................28

MARKET COMPETITION:.........................................................................................28 OBJECTIVE OF STUDY ..............................................................................................29 ENHANCEMENT OF BRAND POSITIONING ........................................................................29 ANALYSIS ......................................................................................................................29 A) POSITIONING ANALYSIS............................................................................................29 1) Identify relevant set of competitive products: ...............................................30 2) Identify the determinant attributes:...............................................................30 3) Analyze the product’s current position and determine consumers preferred position. ....................................................................................................................31 B) SELECT MARKET-POSITIONING STRATEGIES..............................................................31 MACRO ENVIRONMENT SITUATION....................................................................32 METHODOLOGY: ........................................................................................................33 LIMITATION:..................................................................................................................33 UNIVERSE:.....................................................................................................................33 SELECTION OF SAMPLES: .......................................................................................34 TYPES OF RESPONDENT .................................................................................................34 RESPONDENT PROFILE ...................................................................................................35 METHOD OF RESEARCH ..........................................................................................35 SURVEY METHOD ..........................................................................................................36 TOOLS OF DATA COLLECTION .......................................................................................37 CONSTRUCTION OF QUESTIONNAIRE ................................................................37 PRESETTING ...................................................................................................................37 DATA COLLECTION........................................................................................................37 DATA COLLECTION VENUE ...........................................................................................38 QUANTIFICATION OF THE DATA .....................................................................................38 Deliverables..............................................................................................................38 Time Frame...............................................................................................................38 Cost...........................................................................................................................38 POSITING STATEMENT OF HALEEB MILK.........................................................39 UNTAPPED OPPORTUNITIES...................................................................................40 TARGET MARKET ......................................................................................................40 Research Project 7

ISSUE ANALYSIS:......................................................................................................41 SWOT ANALYSIS OF HALEEB MILK .....................................................................41 STRENGTHS AND WEAKNESSES ANALYSIS: .................................................................41 Strengths ...................................................................................................................42 Weaknesses ...............................................................................................................42 Opportunities:...........................................................................................................42 Threats:.....................................................................................................................43 MARKETING OBJECTIVES: .....................................................................................43 MARKETING DEPARTMENT’S SWOT ...................................................................44 STRENGTHS ...............................................................................................................44 WEAKNESSES ............................................................................................................44 OPPORTUNITIES .......................................................................................................44 THREATS ....................................................................................................................44 ADVERTISING OBJECTIVES FOR THE HALEEB................................................45 ADVERTISING STRATEGY FOR HALEEB MILK ................................................................46 FINDINGS OF MARKET VISIT OF AVAILABILITY SURVEY OF LAHORE RETAIL OUTLETS 47 AVAILABILITY SURVEY OF PACKED MILK .....................................................................48 FINDINGS OF QUESTIONNAIRE SURVEY ............................................................49 GRAPHICALLY REPRESENTATION OF SURVEY: .............................................50 HISTOGRAM:..................................................................................................................50 BAR CHART: ..................................................................................................................50 RECOMMENDATIONS................................................................................................51 BIBILIOGRPHY ............................................................................................................52 APPENDICES .................................................................................................................53 SECTION: 1..................................................................................................................53 QUESTIONNAIRE FOR HALEEB MILK SURVEY ................................................55 SECTION: 2 ....................................................................................................................60 RETAILER SURVEY ........................................................................................................60

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Introduction of Haleeb Foods

Haleeb Foods was established in 1986 and its first product was Haleeb milk. Since then, it has continued to provide quality products to its consumers with product and packaging innovations.

Mission

“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”

Vision
“Most Innovative and fastest growing food company offering products enjoyed in "every home every day”

Values
Enterprise


Empowerment


Accountability


Trust


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Haleeb Foods Limited- Historical Perspectives
Haleeb Foods Ltd. (HFL) continues to be at the forefront of product and packaging innovation. It has achieved market

leadership in several food categories with a very strong portfolio, consisting of leading national and international brands. It has also introduced a number of unique products, like Haleeb milk, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt. All this, makes HFL a number one and fastest growing packed Food Company. As reported by the company, its annual turnover was Rs. 7.2 billion during 2005. Initially, the name of HFL was Chaudhry Dairies Limited (CDL). During 1980s, when various dairy industries took a boost in Pakistan, CDL came to into existence in 1984 as a small production unit. The milk processing plant was installed at Bhai Pheru, District Kasur in 1985. It started its trials and the commercial production started on May 21, 1986. Haleeb Foods has segmented its product portfolio in three leading brands including Haleeb, Candia and Tropico. Haleeb has

progressively diversified from UHT milk to other product categories as well. These product line extensions include Haleeb Butter, Haleeb Yoghurt, Haleeb Cream, Haleeb Labban (Drinking Yoghurt), Haleeb Asli Desi Ghee (Butter Oil), Haleeb Funday Juice Drink, Haleeb Skimz (Skimmed Milk), Haleeb N’rish Full Cream Powder Milk and Haleeb Good Day Pure Juices. Haleeb Foods is having a franchise agreement with Cedillac France, and launched Candia Double Sterilized Milk in bottle
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format in April 1999. Candia is also available in Candia Classic variant which is positioned for tea. Another recent initiative is Candia Candy Up, which is flavoured milk for children. It also got affiliation with CCF, Holland during 1989-90 for the production of low fat milk product. The affiliation ended in 1991. During the year 1994, the name of the company was changed as Haleeb Foods Limited. Haleeb Foods 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 product range is available in all the urban and semi urban areas of Pakistan.

Other products and their dates of launch are as follows:
1997 1998 1999 2000 2001 2002 2003 Haleeb Asli Desi Ghee Haleeb Cream, Candia Skimz Milk Powder Candia Milk, Candia Skimz Liquid Milk Tropico Juice Drink, Haleeb Dairy Queen Haleeb N'rish Instant Full Cream Milk Powder Haleeb N'rish Fortified Instant Full Cream Milk Powder Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain Yogurt, Haleeb Lassi Drink Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink, Candia Candy'Up Flavoured Milk Haleeb Cream With Honey, Haleeb Tea Max with 2005 Cardamom, Haleeb Labban, Haleeb Good Day(Mix Fruit, Red Grapes, Mango Pineapple) 2006 Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Nectar
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2004

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Haleeb is Pakistan’s number 1 and fastest growing packaged Food Company. As of fiscal 2005, its annual turnover is Rs.7.2 billion. Recently, Haleeb Foods has built yet another plant in Rahim Yar Khan whose purpose is to provide Haleeb’s quality products to maximum number of consumers.

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Executive Summary

Pakistan is the fourth largest milk producer in the world. About a third of the total milk produced by the rural families flows out to urban consumers and processing industries. In urban areas milk is available to common consumers in two ways: loose / unprocessed milk and packed/ processed milk. Dairy companies such as Nestle and Haleeb are the main part of milk marketing structure. Haleeb Foods Limited (HFL) as local company, which developed from a small structure. Haleeb Foods Ltd. (HFL) continues to be at the forefront of product and packaging innovation. It has achieved market

leadership in several food categories with a very strong portfolio, consisting of leading national and international brands. It has also introduced a number of unique products, like Haleeb milk, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt. All this, makes HFL a number one and fastest growing packed Food Company. As reported by the company, its annual turnover was Rs. 7.2 billion during 2005. Initially, the name of HFL was Chaudhry Dairies Limited (CDL). During 1980s, when various dairy industries took a boost in Pakistan, CDL came to into existence in 1984 as a small production unit. The milk processing plant was installed at Bhai Pheru, District Kasur in 1985. It started its trials and the commercial production started on May 21, 1986. HFL has acquired various international quality and environment certifications that include ISO 9001-2000, HACCP, and ISO 14001 (EMC).
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HFL has a strict and stringent quality policy regarding intake of raw milk. At every PHE rigorous quality tests are conducted to ensure that only fresh milk of the highest quality is accepted at the plant premises. The internationally recognized tests are used to check for a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents.

Building an excellent reputation over the years, Haleeb Foods continues to be at the forefront of product and packaging innovation. By the grace of God, it has achieved market leadership in several food categories with a very strong portfolio, consisting of leading national and international brands – Haleeb, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good Day. Apart from its extensive nationwide distribution networks, Haleeb Foods is also serving several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Haleeb Foods has also introduced a number of unique products previously unknown to the Pakistani market, like Haleeb Labban, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt, Candia Tea Max, cardamom flavored tea whitener, Candia milk, packed in distinctive food grade plastic bottle, and Haleeb Good Day, 100% pure and natural fruit juice, free of added sugar, artificial flavors and preservatives.
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All this and more makes Haleeb Foods Pakistan’s number 1 and fastest growing packaged food company. As of fiscal 2005, its annual turnover is Rs. 7.2 billion.

Contribution to other Sectors:
In the social sector, the company provides over 1,100 job opportunities for skilled, unskilled and professional manpower. It plays a remarkable role in vitalizing the rural economy by disbursing over Rs.1.37 billion annually against milk purchases, benefiting over five million household members of the dairy farmers.

The Environment:
In line with its universal commitment, Haleeb Milkfully complies with its responsibilities forwards the protection of the environment. By making available the processed and packaged dairy products to urban consumers, it helps in arresting urban environmental degradation caused by the influx of cattle into towns. Within it's own production facilities, the company takes pains to operate an elaborate water treatment system to cleanse its industrial wastewater before releasing it for irrigation.

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Background:
Haleeb Foods is market leader in UHT milk market. Dairy queen has captured significant market potential tapping the lower end of the market. However there is still huge gap in loose milk market and packaged milk market. Our new project of UHT pouch milk shall help convert population into packaged milk. It shall ultimately strengthen and grow brick market as well.

Objective:
To tap the milk consumption segment at lower ends of the market by offering quality product at economy prices through ‘UHT Milk Pouch’.

Product Concept:
We use packaged milk for a better quality tea, however it is expensive and restrict our frequent consumption. Now I find Haleeb ABC pouch milk that has same premium quality but offer great savings in my monthly budget. Now I can purchase packaged milk more often and with assurance of Haleeb quality products offering.

Market Size:
Packaged milk consumption is 1.1 M Ltrs in Pakistan and that is only 4% of all milk produced in Pakistan. The packaged milk industry is growing at approximately 20% per annum. Various

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suggested legislations to restrict loose milk can enhance market growth tremendously.

Milk Collection Area
There are 14 zones for self-collection of milk having 28 Main centers (PHE) Table : HFL Milk collection area
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Milk Collection Zones Arifwala Bahawalnagar Bahawalpur Bhowana Mian Channu Haveli Jhang Pakpattan Okara Rahim Yar Khan Shah Jewna Narowal Upper Sind Lower Sind

International quality and environment certification
It has received following quality certifications:

A. ISO 9001-2000
ISO 9001-2000 is a series of standards, which are published by the International Organization for Standardization to meet the growing needs for international standardization in the quality arena. This certification was achieved in March 2003.

B. HACCP
HACCP stands for Hazard Analysis Critical Control Point. It is systematic and science based approach for identification, assessment and control of food safety hazards. From [practical
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point of view it is most effective tool to prevent the occurrence of food borne diseases and to avoid consumer injuries and illnesses linked to consumption of product. HACCP identifies all types of hazards related to food. The company achieved this certification in the June 2003.

C. Quality assurance
HFL has a strict and stringent quality policy


regarding intake of raw milk.

At every PHE

rigorous quality tests are conducted to ensure that only fresh milk of the highest quality is accepted at the plant premises. The internationally recognized tests are used to check for a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents. ISO 14000 (environment-friendly operations)


Year wise milk production in Pakistan
Fiscal Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Milk Production (000) tonnes 15,481 16,280 17,127 18,006 18,986 22,970 23,580 24,215 Fiscal Year 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Milk Production (000) tonnes 24,876 25,566 26,284 27,031 27,811 28,624 29,438 31,294

Source: Pakistan Economic Survey 2005-06

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Processor capacity of various milk processing companies
Processors Nestle HFL Millac Vita Halla Prime Nurpur Nirala Dairy Crest *Engro K&K Butt Dairies Munno Dairies Khi Dairies Military Dairy Farms Total 5.21 Source: SWOG Estimates *Planned Capacity (Million liters) 1.3 0.9 0.3 0.05 0.15 0.1 0.15 1 0.15 0.35 .04 0.04 0.06 0.1 0.18 Capacity utilization Flush Lean 1.3 0.78 0.9 0.54 0.3 0.18 0.03 0.018 0.15 0.09 0.1 0.06 0.15 0.09 0.1 0.06 0.15 0.09 0 0 0 0 0.06 0.036 0.02 0.012 0 0 0.18 0.105 3.44 2.064 Average monthly 1.04 0.72 0.24 0.024 0.12 0.08 0.12 0.08 0.12 0 0 0.048 0.016 0 0.144 2.752

Market shares and prices for milk types
Processed/Raw Type of Milk Market Share in Volume Processed Milk UHT Tetra Pack UHT Poly Pack Open pasteurized milk sold at milk shops Pasteurized pouch Raw/Unprocessed Milk Open milk sold at milk shops Open gawala milk Direct to home 0.24% 0.98% 90% 0.02% 20 18 12-14 15-18 4.98% 0.02% 3.76% Sale/Price Rs./Litre 32 22 14-15

Source: “Pre-feasibility Study: Milk Pasteurizing Unit”, Small and Medium Enterprise Development Authority, SMEDA, April 2002 Research Project 19

Traditional milk supply chain

Source: Author’s own description

Existing milk supplly chain

Source: Author’s own description Research Project

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The organizational set up of HFL
The organizational set-up of the company is given as under

HFL

QAD

R&D

PRODUCTION

MARKETING

MPD

IMPORT & EXPORT

CUSTOMER COMPLAINTS

FINANCE / ACCOUNTING

HUMAN RESOURCE ADMINISTRATION

TECHNICAL

PERSONNEL DEPARTMENT

SUPPLY CHAIN

SALES

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Market Review (Current Year) HFL vs. Industry

1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 INDUSTRY Jul Aug Sep Oct Nov Dec Jan Feb Mar

883,647 967,537 1,124,215 1,144,787 1,054,090 1,076,226 1,078,871 1,102,050 1,194,767

TOTAL HFL 428,900 498,414 593,882 571,914 526,907 530,658 519,848 475,388 587,754

HFL HAS YTD MARKET SHARE OF 47%.

SKU Wise planned Growth @ 22%

HALEEB MILK 1.5 LTR. 1 LTR. 500ML 250ML 65ML TOTAL

F2005A 9,408 71,027 47,453 194,489 2,633 325,010

F2006B 15,336 82,770 51,910 240,235 5,167 395,417

% GROWTH 63% 17% 9% 24% 96% 22%

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INDUSTRY VS. HFL - ANALYSIS FOR JULY F 2006

TOTAL INDUSTRY HALEEB MARKET SHARE F2006 MARKET SHARE F2005 DAIRY QUEEN MARKET SHARE F2006 MARKET SHARE F2005 TOTAL HFL MARKET SHARE F2006 MARKET SHARE F2005 1,359,355 380,675 28.0% 32.0% 217,984 16.0% 15.0% 609,677 44.9% 49.0%

JULY 1000ML & 1500ML 500ML 369,003 126,452 34.3% 32.0% 40,968 11.1% 6.0% 168,357 45.6% 39.0% 233,226 54,355 23.3% 22.0% 106,613 45.7% 43.0% 161,613 69.3% 65.0%

250ML 755,806

65ML 1,320

% GROWTH VS. LY 1000ML & TOTAL 1500ML 500ML 250ML 65ML 53% 33% 62% 76% 20% 25% 64% 19% -61% -61%

198,548 1,320 26.3% 100.0% 36.0% 100.0% 70,403 9.3% 7.0% 0.0% 0.0%

68%

202%

28%

116%

0%

278,387 1,320 36.8% 100.0% 44.0% 100.0%

42%

97%

27%

31%

-61%

Gained share in 1000ml & 500ml but lost in 250ml.

Overall Market Share
Overall Market Share July F2006
Vania 2.00% Dairy Pure 3.30% Vita 1.50%

Nurpur 3.70%

HFL 44.90%

Nestle 44.60%

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Audience Segmentation
For Haleeb milk all audience is same because it is consumer product, consumer have a feeling and thing but it is low involvement product because its cost is to much high and a normal consumer of packed milk understand the its advantages o disadvantages and for Haleeb milk s target market that above mention almost same all over the country it will be communicate through it advertising strategy and media like Outdoor, TVC, Print media, direct marketing etc. Theses are some facts and figure that taken from Haleeb Foods Marketing team .it is recent data comparison and information of milk industry etc.

Market review
Situation Analysis
This section presents relevant background data on the market, product, competition, distribution and macro environment.

A) Market/Industry situation
Industry Structure  The industry structure packed milk in the category is oligopolistic where there are a few firms (Haleeb, Nestle, Engro, Good milk) producing essentially the same commodity.

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Entry-Exit barrier  The major entry barriers include high capital requirements; economies of scale; patents and licensing requirements; scarce locations; raw materials and distributors. Industry life cycle growth  The market share for Haleeb is expected to increase by 15% in the expected year. Therefore, Haleeb milk can be classified in the growth stage. Target Market  The biggest market for Haleeb milk is urban areas of all cities Haleeb milk is a mass-market product that is targeted towards Haleeb milk is generally use for tea by household male or females of all ages. Brand Loyalty  Create Brand Loyalty and Awareness. This will be done through promotional activities such as College Activation, Restaurant Activation, Posters, and other forms of Branding.

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Why Would Consumer Switch Brands

why would Consumer switch brands
100 90 80 70 60 50 40 30 20 10 0 availability brand loyal good taste no response
12 22 23 91

frequency

factors

B) Product Situation  Product
Haleeb milk is available in four sizes i.e. 250 ml, 500 ml,1 litre and 1.5 litre. It is easily recognizable due to its blue color and Haleeb Logo Price  The prices of the four different size packs are as follows: 250 ml-Rs.12 500 ml -Rs.20 1 Litre- Rs.35

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1.5 Litre- Rs.54 Place  The biggest market for Haleeb milk is Lahore, Karachi. Rawalpindi, Islamabad, Gujranwala, Faisalabad, NWFP, Sialkot, Multan, and Rahimyarkhan and all small cities of Pakistan They have a wide distribution network as compared to Nestle and Olper’s. Promotion  Haleeb milk nowadays is the pioneer in advertising. In our consumer survey as well they had the highest amount of ad recalls and consumers preferred that one of the attributes that Haleeb milk has an advantage in is that it is better advertised.

Advantage Attributes Of Haleeb Milk
Attribute of Haleeb Milk has an advantage
good taste

26 39

Quality easily available better advertised

25 20

The USP currently being used by Haleeb is “The Thickest milk.” They are focusing on the quality.
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Competitive Situation
In this section we focus on the competitor analysis.

1)

Identifying Competitors:

The first step in competitor analysis is to identify competitors, which can be further classified in the following types a) Brand Competition: The brand competition for Haleeb milk includes all those milk which are in direct competition with Haleeb i) ii) iii) Nestle Olper’s Good Milk

b) Generic Competition: Every firm is competing for the same rupee. This will include the ntire milk category such as tea, coffee, etc.

Market Competition:
In addition to looking at companies making the same product, we looked at companies that satisfied the same customer need.

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Objective of Study
Enhancement of brand positioning

Enhancement of brand positing of Haleeb milk with competitive edge through comparison with competitors “Gain Leadership in shelf Displays of Key outlets and develop new potential market for Haleeb milk. outlet

Analysis
For the given objective we will conduct a qualitative research in the shape of Questionnaire and availability form

A) Positioning Analysis
Every company must try to identify the specific ways it can differentiate the product. The number of competitive differentiation varies with every industry based on the number of competitive advantages and their sizes. In this section we conduct the positioning analysis of Haleeb milk in order to know whether it has been correctly positioned or not. For the positioning analysis we took the help of consumers and the advertisement of Haleeb.

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1) Identify relevant set of competitive products:
The positioning analysis can be done on the product level by looking at the consumer perception about the Haleeb milk on the brand level by looking at different brands. The set of relevant competitors as far as packed milk are concerned are: a) Milk Pack b) Olper’s c) Good Milk d) Other For the brand positioning we referred to the advertisement and positioned it on the map on that basis.

2) Identify the determinant attributes:
Positioning can be based on a variety of attributes but for packed milk the following bases apply. a) Usage: Packed milk are generally consumed for tea , but it can also be positioned in such a way that brings out its other uses like for drinking and energizing.

b) Features: Positioning of packed milk drinks can be done on the bases of features such as quality and natural goodness, energizing etc.

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c) Parentage: Packed milk can be positioned on the image of its. Like Haleeb is first dairy brand of Haleeb Foods, Twenty year of perfection.

3) Analyze the product’s current position and determine consumers preferred position.
To analyze the product’s current position and to determine the preferred combination of attributes a perceptual map is drawn based on the two most important attributes ranked by the consumer. The three most important attributes according to our survey were taste, natural goodness and quality like Haleeb use "The thickest Milk”

B) Select market-positioning strategies.
Haleeb milk is focusing on only one attributes it is not suffering from a positioning error as it has received the highest rating on this attribute. The most important attribute as far as milk is concerned is taste. Secondly, it should try to gain as much market share as possible by focusing on promotional activities and should enhance its distribution coverage.

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Macro Environment Situation
The economic situation of Pakistan depicts recession  Socio cultural trends:

The current population is highly influenced by media in form of cable, newspaper and local TV. The advertisements for the packed milk category have been able to generate growth in this segment.  Demographics:

According to our target market segment in rarer and urban area of all city of Pakistan, Thus there is a large opportunity to register growth.  Behavioral:

The behavioral factors include the following: 1. Regular For Haleeb milk is daily consumable produt like use for tea. 2. Usage Rate: All heavy users of packed/fresh milk 3. Loyalty status: As mentioned before the loyalty status for packed milk low.

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Methodology:
The most common method of social science data collection is a survey based on a probability sample. The survey design was, and still is, quite complex to ensure equal probability of selection to ensure that the findings can be generalized to a specified universe. Refers to the entire process of conducting research, reporting how the data was collected under what conditions and so on. Bearing these points in mind we have collected data and techniques and tools which have been employed in the study. Procedure we adopted in the study for the given objective we have conducted a qualitative research in the shape of questionnaire, market visit form from two different markets.

Limitation:
The assumption regarding the willingness of the Peoples (Target Segment) is altogether different as per our perception. They showed much resistance and inability to participate in the interviews.

Universe:
In this research, the first stage that comes after selecting the topic is usually the selection of the universe. The universe of the present is the Lahore Urban and ruler area. In this area we find all types of Consumer and Retailer who used or sells packed milk of fresh milk, another reason of selecting this

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universe is because of its new potential market for packed milk currently only 4% share of packed milk in total milk market.

Selection of Samples:
When Universe is large it is difficult to interview every unit of the universe. In such situation it is better to draw e sample. Sample is any sub group of or sub aggregate drawn by some appropriate method from a population. A qualitative research exercise like questionnaire survey requires very careful selection of the group participants, as the people who fill the questionnaire represent a very large population segment in term of their options, perceptions, attitudes, believes, ideas, likes dislikes, etc. Its is , therefore , essential that the group participants are recruited from amongst the population segment that they represent. To archive objective, we have tried to select most suitable segment of population that is prepared in the light of the selection criteria for the study .Each respondent fulfilling the selection criteria was invited formally to fulfill the questionnaire on the specified time For this study we categories two types Urban  Ruler  Sample of 50 respondents (owner of Tea stall, hotels, and teashops) at Multan Road both sides, Rewind Road has drawn by simple Random Sampling, and 50 key outlets of Lahore city for availability survey of packed milk.

Types of Respondent
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Females (Customer or Consumer of milk)  Male (Owners of tea stall , hotels, Outlets Manager or  consumers of milk)

Respondent Profile
According to our research objective design our respondent  belong to SEC ‘A’ , ‘ B’ & ‘C’

Method of Research
The researcher main concern in this section is to describe various stages through which the research procedure passed. All the researches whether in physical or social phenomena depend upon a special way of investigation and interpretation of data. In physical sciences generalization are drawn after experimentations but in social sciences experimentations are not infrequent use because of complex and changing nature of the social phenomena some of the traditional instruments together data are interview, case study and survey method. The present research involves an exclusive Survey at Urban and ruler areas of Lahore. The objectives are together the data about the brand positing enhancement and develop and new potential market for Haleeb milk and through advertisement try to create consumer awareness and change consumer buying behavior.

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Survey Method
Surveys are now being used in all areas of life. Business, consumer, activist, groups, politicians advertiser use them in their everyday decision making process. Some firms such as Gallup and Harries regularly conduct a public opinion survey on a full time basis. Survey has certain well-defined advantages. They can be used to investigate problems in realistic settings. Newspapers reading, Television viewing and consumer behavior patterns can be examined where they happen rather in laboratory screening under artificial conditions. The cost of survey is reasonable considering amount of information gather. In addition, researchers can control expenses by selecting four major types of Surveys. Mail, Telephone, personal, Interview and Group administration. Another advantage is the large amount of data can b collected with relative easy from a variety of people. The survey technique allow researcher to examined many variables, demographic and Lifestyle, attitudes, motives, intentions and so on to use multivariate statistics to analyze the data, also geographic do not limit most surveys. Already existing data can b helpful to survey research. Data achieves government documents, census materials, radio and television rating books and voter registration lists can be used a primary source or a secondary source of information. With archives data it is possible to conduct an entire survey study without ever developing a questionnaire or contacting respondents.
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Tools of Data Collection
In the present study questionnaire is selected as a tool of data collection because of the compilation rate is 100% and also respondent are of different educational level. It is inappropriate to distribute questionnaire among the respondents because there is a greater possibility of missing the respondent. So the researcher is asking questions written on questionnaire personally from the respondents.

Questionnaire is consisted of 10 to 15 questions.

Construction of Questionnaire
A great effort was made to construct the questionnaire in as clear and precise language as possible. The researcher constructs the questionnaire in a clear and precise language as possible.

Presetting
The questionnaire is pre-tested for the later study.

Data Collection
After pre-testing the data is collected. The collected results depend upon the attitude of the respondents.

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Data Collection Venue
We have collect this data from owner of tea stall small hotels and different shopping malls public places and key outlets in market like (Departmental Stores) and collect some information from Media advertising agencies that working for this particular brand to meet our said objective. A good qualitative research designed for fulfill our requirement of research and the discussion can be easily arranged for observation from media agencies at the same time.

Quantification of the data
After the data collection basic information is tabulated and analysis is made by calculating the percentage. After the data collection scores are given to different responses of the respondent.

Deliverables
A comprehensive report on the findings of the study would be submitted to project cell at the end of the project.

Time Frame
We have tried to complete the study and report submitted in given time period 14 weeks from go ahead after approval of Prof. Kahisf-ud-din and Prof. A. Rauf dated 27-Sep-06.

Cost
We have to spend time for this research project for finding of our objectives and get maximum credit from your Advisor.
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Positing Statement of Haleeb Milk
Haleeb milk is market leader in dairy industry of Pakistan they want to maintain it and enhance its market share through its marketing campaign and consumer awareness the USP currently being used by Haleeb is “The Thickest milk.” They are focusing on the quality. Consumer Perception of Haleeb milk  Strategically placement  Association of Distinguished attribute  What the Haleeb can do for its consumer.  Haleeb milk will be positioned using the previous attribute

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UNTAPPED OPPORTUNITIES
Total Milk in Pakistan = 27 Bio Litres

Packaged Milk 4%

Loose Milk 96%

Target Market
For Haleeb milk all audience is same because it is consumer product, consumer have a feeling and thing but it is low involvement product because its cost is to much high and a normal consumer of packed milk understand the its advantages o disadvantages and for Haleeb milk s target market that above mention almost same all over the country it will be communicate through it advertising strategy and media like Outdoor, TVC, Print media, direct marketing etc. Theses are some facts and figure that taken from Haleeb Foods Marketing team .it is recent data comparison and information of milk industry etc The target market for Haleeb every consumer of milk in the Urban Centers and mass marketed in small towns and rural areas.

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ISSUE ANALYSIS:
Looking at the SWOT analysis there are a number of issues that need to be addressed.  Should Haleeb expand its Distribution to more areas? Would that be feasible? Would that generate a sufficient increase in Sales?  If Sales can be generated should the present Marketing Mix continue or should any changes be made in it?  Should there be product line diversification in form of Haleeb Dairy Queen or not?  How can Haleeb Build Brand Loyalty in the packed milk Category?

SWOT Analysis of Haleeb Milk
Strengths and weaknesses Analysis:
The Strengths and Weaknesses for Haleeb are as follows:



The key weakness we have identified of Haleeb is its weak

distribution.  And for a segment, which has Low brand loyalty this is a

major weakness.  Promotion is a very strong aspect for Haleeb, which it has

successfully carried out in form of College activation and Restaurant Activation.  Low Spending on Advertising only 4% to total Sales

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Strength of Haleeb is that last years campaign was able to increase the Sales growth of 22% thus the same policy can be applied this year as well.

Strengths
    


Market leader in Dairy packed milk National Brand having good repute over international brands Latest innovated ,high quality process Experience of 20 years in market Large distribution network

Weaknesses
  Lack of credit (no credit transaction with retailers) Low spending on Ads

Opportunity and Issue Analysis:
 The major opportunity for Haleeb that currently exists in this category is to improve its distribution policy in terms of coverage. Previously out of its reach. In this way they can increase sale s volume and profit. Haleeb can also increase its product portfolio by introducing Haleeb Dairy Queen, which can have its own set of customers

Opportunities:
    Introduce product in new markets Focus on competitors brands Increase and try existence sales force Strong Distribution network
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Threats:
  New brand launch Uneducated customers

Marketing Objectives:
The marketing objective of Haleeb for the year 2005 was:



Increase in market share by about 20% by entering untapped markets or breaking competitors share.

Create Brand Loyalty and Awareness for the summer period, which now extends. This will be done thru promotional activities such as College Activation, Restaurant Activation, Posters, and other forms of Branding. Different advertising campaign

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Marketing Department’s SWOT
STRENGTHS Strong Brands Team Work High job satisfaction Good marketing team – blend of youth and experience Marketing Expense Control System M A T C H I N G g WEAKNESSES No HOD Low Marketing spend Lack of functional training (skill development) Sales Oriented approach Improper implementation of plans due to centralized decision making Weak utilization of consumer research. No trade research No long term strategy Weak travel policy

Internal to the Company

Conversion
THREATS Use of Nestle Corporate Umbrella brand Strong financial muscle of primary competition

OPPORTUNITIES High potential growth categories NPD’s Bottled o Water Teao Whitening Powder, etc. ERP

External to the Company

-

Milk quality and procurement systems

-

New entrants Loss of market share

Conversion

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Advertising Objectives for the Haleeb
“The Advertising Objectives of Haleeb Milk is to highlight their key attributes such as consumer awareness regarding the brand, attitude and preferences of the end consumer.”

They will try to retain their existing consumer besides generating new potential product. consumers for maximizing the profitability and visibility of

Haleeb Milk advertising objectives are

Specific  Realistic  Measurable.  Create Brand Loyalty and Awareness. This will be done through promotional activities such as College Activation, Restaurant Activation, Posters, and other forms of Branding.

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Advertising Strategy for Haleeb Milk
Advertising Strategy of Haleeb milk is to select the right media channel and media vehicle to reach the target market and try to enhance brand awareness and focus on the positing of brand in consumer mind also increase market share through cost effective method the elements of the Creative mix, Target Audience, Product Positioning, Communication Media, and Advertising Message. In short our strategy tells us how to get there, and achieve the media objective of this campaign.

Key Points

Defend milk market- leader position in Pakistan.  Threat from competitor’s brands and new launching brands.  Selection of Target market in Pakistan.  Product positioning and market-leadership.  60% success criteria of this campaign  Vision and mission of product analysis  Assessment of ever changing Economic, Cultural ,International  and public scenarios on the performance of Haleeb products

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Findings of Market Visit of Availability Survey of Lahore Retail outlets
The purpose of the study was to find out possible target market for Halleb milk in selected sample market. The research questions revolved around the customer perception about the packed milk and what are the problems they are facing while using it. The main issues for small tea stalls were the cost of pcked milk.

 Haleeb is leading market as this lead followed by Milk pack and Olper’s because both are having almost equal share.  Haleeb & Milk pack is almost having equal share in %age where as this lead followed by Olper’s then market share of Haleeb can be increased by improving the availability because the shopkeepers are complaining of the irregular supplies.

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Availability Survey of Packed Milk

Availability Survey of Packed Milk on Key Out lets of Lahore

28% Olper' 37% Haleeb Milk

35% Milk Pack

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Findings of Questionnaire survey

 We have conducted survey from fifty different types of respondent who are owner /worker of tea stall, Hotel. Tea shop or consumer about packed milk.  Most of Respondent having issues of price ,quality ,and handling  All these hotels or tea stall daily consumption of about 20 liters per day  All this particular market is very potential for enhancing brand positing and market share as well  Haleeb have to focus on this particular market and develop it launch some new brand in cost effective packing and capture the potential market.

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Graphically Representation of Survey:
Histogram:

Market Survey for Haleeb
40 35 30

frequency

25 20 15 10 5 0
Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12 Q 13

Option A Option B Option C Option D

Question

Bar Chart:
40 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Option D

Option A

Option B

Option C

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Recommendations
Our suggestion after this study Haleeb Foods have to focus on  this particular market segment and do some steps to capture the market through new innovation and launch Haleeb milk in new cost effective packing instead ok tetra pack Advertising campaign should focus on awareness of consumer  and customer towards quality. If it is possible provide chiller to shop owner and utilization of  Haleeb milk. If its is possible make some model tea shop for Haleeb milk  and try to create awareness rural areas Focus on direct marketing activities like free trial or fee  sampling for trial.

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BIBILIOGRPHY
1. Mr., Hassan Wajhat, General Discussion, Brand Manager Haleeb Milk (Sep,Oct,Nov,2006) 2. Mr. Asif Awan , CEO, Dynamic Marketing

Concepts(Sep,Oct,Nov,2006) 3. Mr. Khalid Mehmood Anjum ,Media Manager, Dynamic Marketing Concepts(Sep,Oct,Nov,2006) 4. Mr. Zahid ur Rahman ,CEO ,BTL Marketing

Concepts(Sep,Oct,Nov,2006) 5. Mr. Zaheer Malik ,Operation Manager, BTL Marketing

Concepts(Nov,2006) 6. Mr. Sulman ,Media Manager ,Engro Foods(Sep,2006) 7. Industrial Research Service, “Milk Industry” , CHAMBER OF COMMERCE (LRL No.20 Vol.4 2004) 8. Group Discussion Kabir Hussain and Imran Nawaz with our Respected Advisor Prof. Kashif Ud Din & Prof. A. Rauf.(During completion of research and report 2006)

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Appendices

 TEA STALL  HOTEL SURVEY  RETAIL OUTLETS SURVEY

SECTION: 1
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Dear Sir/ Madam We are students of Punjab College of Business Administration, University of central Punjab and conducting a research in order to find out the usage pattern of consumers towards packed milk in fresh milk market. The time you will take out to answer our questions will add great value to our study.

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Questionnaire for Haleeb Milk Survey
Name of Respondent:

Hotel/Shop/Tea Stall Name:

Telephone:

Address:

Area:

City:

Age:

Date:

Type of Hotel

Tea Stall Restaurant Hotel Part Time Tea Stall

Type of Hotel Market

Small Large
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1. What type of milk currently you use?

I. Packed II. Fresh

III. 2. What is the reason you use fresh milk?

I. Price II. Availability III. Quality IV. Taste

3. If you use packed milk what is the reason?

I. Quality II. Taste III. Good for Health IV. Availability.

4. If you used packed milk, what brand you use?

I. Haleeb II. Milk pack III. Olpers IV. Others

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5. If you do not use fresh milk what is the reason?

6. If you do not use packed milk what is the reason?

7. If packed milk is available then will you purchase it?

I. Yes II. No

8. If packed milk is available then what brand you will prefer to use?

I. Haleeb II. Milk pack III. Olpers IV. Others

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9. What reason of preference you consider in mind? I. Price II. Quality III. Taste IV. Availability.

10. Customers demand for what type of milk tea?

I. Packed II. Fresh

11. If they demand packed milk, then what brand mostly they like?

I. Haleeb II. Milk pack III. Olpers IV. Others

12. Customers often demand for thickest milk for tea?

I. Yes II. No

13. How much quaintly of milk you consume daily?

I. 10 liter II. 20 liter III. 30 liter IV. more then
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Name of Surveyor_______________________

Sign.__________________________________

Name of Surveyor_______________________

Sign.__________________________________

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SECTION: 2 Retailer Survey

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