Haleeb Foods Limited

Pakistan is the world’s fifth largest dairy industry in the world and cheaper than many
developed countries in the world like Australia and America. So there is a tremendous
amount of opportunity for firms to excel in this industry. Chaudhry Dairies limited is one of
those who have entered the dairy industry of Pakistan and have posed serious threats to well
established firms like Nestle. Chaudhary limited was incorporated in 1984 as a Public
limited Company. It was established with the financial aid of PICIC (Pakistan Industrial
Credit and Investment Corporation) and ADBP (Agricultural Development Bank of
Pakistan). The head office is situated at 135 Ferozepur Road; Lahore while the plant is
situated at 62 km Lahore-Multan Road, Bhai Pheru. In keeping with the company's
commitment towards product diversification and to provide a wide range of quality food
products to their valued customers, the name of Chaudhry Dairies limited was changed to
Haleeb Foods Limited with effect from February, 2004. Commercial production started in
1986 & the company reached its breakeven in the year 1992. Initially 150 people were
employed at the plant. 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 MILK PAK 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 was providing consumer quality packaged food particularly dairy Foods products.
Haleeb Foods Limited (Formerly CDL Foods Limited) is one of the Pakistan based
company with a burning passion to take on the international market. In the clutter of
multinational the company has a distinguished and a prestigious place. The name of Haleeb
foods limited is synonymous with best quality foods products.

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Mission Statement of Haleeb Foods

“To build branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing share holder’s value”.

Vision Statement of Haleeb Foods

Most innovative and fast growing food company offering products enjoyed in “every home
every day”.

Values of the Company

• Enterprise

• Empowerment

• Accountability

• Trust

• Teamwork

MILESTONES ACHIEVED BY HALEEB FOODS LIMITED (CDL)

• HACCP (in process controls for safer products)

• ISO 9002 (better quality for greater customer satisfaction)
• ISO 14000 (environment-friendly operations)

TOTAL QUALITY MANAGEMENT (TQM)

Haleeb Foods limited has established TQM system in 1994. Today's business world is all
about TQM and HFL has done it 12 years before. The company follows the philosophy of
“delighting the customers ". The company treats them as partners and keep channel of
communication open with them. The company has succeeded in this by continuously
improving the quality of its products and by satisfying the needs of its customers. The

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company believes in creating and sustaining an environment, which encourages learning
and empowerment and these in turn help strengthen the quality culture across the business.
Haleeb Foods Limited has got the honor to launch sterilized milk for the first time in
Pakistan. Also the credit for launching the milk in tetra fine packaging, for the first time in
Pakistan, goes to Haleeb Foods Limited.

CURRENT SITUATION

Haleeb Foods Functional Organization Structure

Haleeb is a public limited company managed by a board of directors who has vested (to
have the rights of ownership) the control of company operations to Managing Director
(MD). Haleeb is an organization run by a team of professionals headed by a team of
professionals. It has 17 departments successfully running their operations. The Functional
Organization Structure has the following details:

• Chairman / Board of Directors

• Managing Director
• Human Resources (HRD)
• Accounts & Finance (A&F)
• Marketing (MKT)
• Sales (SAL)
• Supply Chain (SC)
• Operations (OPR)
• Quality Assurance (QAD)
• Research & Development (R&D)
• Finance Department
• Information System
• Technical Department

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 ORGANIZATION CULTURE

Organizational culture is an idea in the field of Organizational studies and management

which describes the psychology, attitudes, experiences, beliefs and values (personal and
cultural values) of an organization. Organizational culture of Haleeb Foods Limited
includes structures, policies and corporate culture.

Structure: Company has a centralized structure (Situation in which decision-making

power is at the top of an organization and there is little delegation of authority) all the
decisions are made by the board of directors, heads of marketing, finance and production
departments.

Policies: Company adheres (to stick) to strict policies, which are all directed towards
Dairy product improvements and providing best nutritive value to its customers.

Culture: The way people talk, dress up and work determines the corporate culture of the
company. Haleeb Foods Limited has a competitive culture, where strong values such as
team work, empowerment and sharing of ideas are encouraged.

SITUATIONAL ANALYSIS

HALEEB FOODS LIMITED is one of those few leading national companies. It collects
about eight hundred thousand liters of fresh milk everyday from its large number of
collection points located all over Punjab, chills it at the site and processes to manufacture
different products .

PRODUCT RANGE

Haleeb Foods Limited is producing the quality products as per the standards of ISO &
HACCP. Along with the quality products, Haleeb is also producing the wide range of the

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products including milk based products, juices, powder etc. The products can be divided
into following ways

CONSUMER PRODUCTS

Products, which are branded and are sold to the end consumer through a distribution chain
in the packaged from as produced by the company. Consumer products are sold under
following brand names

1) Dairy Products
i. Daizy Butter
ii. Nutrious Thick Milk
iii. Daizy Yogurt
iv. Liquid Tea Whitener
v. Powder Tea Whitener
vi. Daizy Cheese
vii. Asli Desi Ghee
2) UHT MILK

i. Haleeb Nutrious Thick Milk

ii. Dairy Queen
iii. Candy Up Flavored Milk
iv. Skimz Liquid Milk
v. Skimz Powder Milk

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3) Tropico:

i. Tropico Nectar
ii. Good Day 100% Pure

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INDUSTRIAL PRODUCTS

Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it is
also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced in
1996. Both products are sold in 25 kg bags. Excess milk fat is sold unprocessed to makers
of butter, ice cream and sweeteners, or at request is turned into ghee.

EXPORTS

CDL started exporting its products in 1999 and has done business with customers in Korea,
Afghanistan and china, United Kingdom. The company is not only supplying products
nation wide but also currently exporting its products to Afghanistan, Bangladesh, Europe
and America. It exports Desi Ghee to South Africa cream, milk and fruit juices Uk.
Powdered milk and ghee to Qatar. It is also planning to export its products to Canada,
Dubai and Uzbekistan.

The Executives of Haleeb Foods claims that growth rate of Haleeb Foods PVT Limited is
highest as compared to any other company in Pakistan. Its total sales grew immensely in
last few years. It has given jobs to 2200 employees which includes skilled unskilled and
temporaries. Its plants in Lahore 3-shift basis daily in which every shift lasts for eight hours
that means the plant works 24 hours a day. As the company is making products on large
scale, it produces a lot of waste as well which is being disposed in an efficient way in order
to keep the environment health and clean as respect for the national Protection Laws. The
company is earning high profits and as a result it is sponsoring the welfare of the children
as it runs about 600 schools in different parts of the company. It is one of the major tax
payers as it claims to be very honest in tax assessments and paying of tax amounts set by
the Government. The major secret of the success of the company is the practice of the
Honesty in every field and on all frontiers that are expanding day by day. The company
investor and management teams have unanimously decided since the start that there will be
no compromise on quality of products. That is why it subjects milk to strict tests on the
basis of which there is a lot of reduction in supply due to rejection which is approximately
more than 100,000 liters per day, a very big loss daily. The company bears this loss daily

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instead of selling in the market because they don’t want to compromise on quality. The
company administration has taken keen interests in refining the environment of its
establishments and developed all of its sites at the highest aesthetic standards. It has a very
attractive office at 135-Ferozpur Road Lahore and a beautiful food processing plant with
amazing landscape 62 kilometers on Multan road. The plant is not only a production but
also has a big warehouse, a mosque, a fair price shop and a guest house. It has
commissioned a similar type of plant with a huge capacity in Rahim –Yaar- Khan.

Marketing Mix of Haleeb Foods

The marketing mix covers all the aspects which play an important role in the physical
appearance, affordability and the way a product is placed in front of the consumer. It helps
in building an image which would in the end help the company to capture huge market
share.

Product
Product line is decided through consumer demand to get positive results. Haleeb Foods
have adopted a customer driven approach and regularly conducts environment analysis to
check consumer lifestyles, competitor’s products and advancements in technology. The
Research and Development Department conducts opportunity analysis; checks gap in
market segment and generates an idea.

Price

Haleeb Foods are priced keeping in view the buying power of middle-income and high-
income social classes. The cost includes the cost of manufacturing, labor, raw materials etc.
Being a multinational brand, the pricing objective of Haleeb Foods is mainly to increase
sales as it has already penetrated the market. Their prices are not affected by price changes
by competitors, and they don’t engage in price wars. Competition is met through
innovation. The prices of Haleeb Foods change as the product size is changed of the

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Product Life Cycle. And Because of the contract between the seller companies, they offer
same price. They use pricing strategy on cost base method, to make there prices of different
products. The retail prices are different according to there size and brand. However prices
have been standardized throughout Pakistan and there is no differentiation based on
geographical areas. There is no change in prices according to season. It remains the same.
Wholesale price is cheaper than the retail price because in wholesale the selling is in bulk.
There is no discount and early cash payment policy in Haleeb foods. They adopt same
strategy in international marketing as in local marketing. But the prices are according to the
international currency.

Promotion

Good Promotion always plays an important role in the success of any product. A good
product can fail if it is not properly promoted. Haleeb Foods is taking big steps to promote
it’s product by maintaining good relationship with the community of Pakistan. Like other
companies Haleeb is using different modes of media for advertising just like Newspapers,
Telivision, Radio, Magazines, Newsletters, Internet, Brouchers etc.

Place

Place include three major areas that are Industrial, Shopping, Residential area. It is difficult
for people to go to factory to get Haleeb’s products. Its products are available in shopping
areas and residential areas. They distribute there products nationally and internationally
through out the world. Haleeb Foods are distributed using an indirect channel, that is,
dealers. They follow pushing strategy. In which firms in a distribution channel cooperate in
marketing a product. It includes suppliers and retailers. Retailers take order from retail
stores on daily basis and provide products according to order. There are two departments

• Raw material department

• Finished goods department

From the finished goods department the product goes to the warehouses.

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Haleeb Foods Company has four types of dealers

• Normal Dealers: Deals in Haleeb milk along with the other brands of company.
• Exclusive Dealers: Deal in Haleeb milk only
• Mega Dealers: Same as normal dealers but are offered extra trade discount due
to high sales potential.
• Corporate Dealers: Handle institutional sales

COMPETITIVE ANALYSIS OF HALEEB FOODS

SWOT ANALYSIS OF DAIRY INDUSTRY IN PAKISTAN

STRENGTHS

• Endowed with the very good breed of buffaloes

• Highest per capita consumption of milk in association

• Regular culling of less productive animals

• A high ratio of agricultural land to cultural ratio

• An emergence of commercial dairy farms on a large scale

WEAKNESSES

• Small and scattered animal holding

• Prevalence of traditional raw milk marketing system

• Poor quality of milk

• Milk processing predominantly dependent on obsolete UHT technology

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• Lack of access to well trained support service staff.

OPPORTUNITIES

• Huge unsatisfied demand of milk and milk products

• Increase consumer awareness of healthy eating

THREATS

• Inadequate public and private investment in modernization of sector

• Vested interests in perpetuating the dependence of imports in dairy products

• Unregulated imports of dairy products at cheap prices

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PEST ANALYSIS OF HALEEB FOODS

It is very important that an organization considers its environment before beginning the
proceedings. In fact, environmental analysis should be continuous and feed all aspects of
planning.

• 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 for this market because food and dairy products are consumer goods and
they have to purchase it in any condition.
• ECONOMICAL CONDITIONS
The fluctuations in Pakistan economy also effect Haleeb’s market position. Because
of high inflation and low purchasing power Haleeb is unable to capture many
potential customers of the large Pakistani population who have to struggle hard to
make their living possible rather than to afford the luxury of drinking packed milk
as often as they would like to.

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
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. Haleeb Foods Limited employs the latest machinery
in production in its plants and computerized systems for quality checks and control
as well as production. In milk industry the most latest technology is in operation in

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 Pakistan hence no competitor poses a threat to Haleeb on basis of technology. Their
Ultra High Temperature is a technology which maintains the quality of their milk
and at the same time provides thickness.

SWOT ANALYSIS OF HALEEB FOODS

STRENGTHS

• 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

WEAKNESSES

• Low promotional activities

• Comparatively weak distribution system

OPPORTUNITIES

• Haleeb Foods Limited can export food items especially Juices to Middle East
• CDL Foods limited has been changed to Haleeb Foods Limited, so this change in
name can help them to attract foreign customers.
• Haleeb Foods Limited can go for related diversification by producing pure juices
and flavored yoghurt.
• Haleeb Foods Limited can go for joint venture with other companies to attract the
market share.

THREATS

• Strong competitors i.e. Nestle, Engro Foods

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 • Price sensitive people
• Milk men (Gawalas) providing non branded milk in homes
COMPETTIVE ANALYSIS OF HALEEB FOODS

Haleeb Foods competitors in the dairy industry are mainly Nestle and Engro Foods. Nestle
a Switzerland based company has been serving Pakistani consumer since 1988 when it first
acquired the shares in Milk Pak. Nestle with is offering the following products in dairy line
Milkpak, Nesvita, Nido, Nestlac, Everyday, Nestle Dahi, Nestle Fruit Yogurt, Nestle Raita
and Milk Pak Cream. From the product line it is clear that why Nestle is the market leader
grabbing 44% of the market share. The major contributors of Nestle success are HR,
Marketing and Sales Department. The major contributor is its appropriate strategy
particularly its relationship with the social and environmental sectors. Perhaps this is the
reason that in spite of being a multinational has been well accepted in Pakistan. There are
ample chances for its survival in the future. Engro foods established in 2004 are nicely on
its way to grab a handsome portion of market share. Engro is all about people who are a
part of them their culture is dynamic and energetic with emphasis on core values and
loyalty of employees. It has got 10% of the market share in dairy industry of Pakistan. Top
Quality brands like Olpers, Olwell, Tarang, Omore and Owsum have been successfully
launched under the helm of company’s dairy products. Haleeb Foods have grabbed 38% of
the market share with annual turnover of 10 billion annually and it has posed serious threats
to the Nestle Dairy product line. The remaining share of the market has been with the small
competitors and Gawallas providing non branded milk in the dairy industry of Pakistan.

Why Nestle Dairy Products are Market Leaders?

• Keeping new players like Olpers and old ones like Haleeb Nestle
emphasized more on advertising

• Nestle have been experiencing a constant increase in cost with raw materials
contributing the larger part of its incease. Haleeb having their own suppliers
so the raw material cost is bit too low.

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 • Nestle maintained its value of gross profit nearly or above 30% to ensure
that it has strong control over its costs and efficiency of production. But on
the other hand Haleeb faced a bit of downfall when OLPERS introduced
their campaigns.

BCG Matrix

Haleeb milk is categorized as a star in the Haleeb Foods Limited product line as it brings
the most in terms of revenues to Haleeb Foods Limited. It has been most productive for
Haleeb Foods Limited since their operations.Haleeb Milk has grabed more than 54% of the
market share. But they must invest more in it to make it more profitable as tough
competitors like OLPERS and Milk Pak are still in competition and trying to grab a
handsome portion. Skimmz Powder Milk and Daizy Yogurt are having proved to be dogs in
product line of Haleeb Foods. Nestle Dahi and Nestle Fruit Yogurt is nicely dominating
Daizy Yogurt and Skimmz Powder Milk hasn’t met the destination where Haleeb Foods
Limited would have hoped in Pakistan.

ADVERTISEMENT ISSUES OF HALEEB FOODS LIMITED

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With the arrival of ENGRO FOODS in dairy industry of Pakistan, it has caused serious
concerns to Haleeb Foods with respect to competition in markets of Pakistan. Haleeb Milk
which is ranked as a STAR in the product line of Haleeb Foods has been seriously
challenged by the aggressive advertisement campaigns of OlPERS. Haleeb Milk sales
have been seriously threatened in one of the huge cities of Pakistan like Karachi by Olpers.
In fact, sales of Haleeb Milk are more in Lahore than Karachi, which shows the nature of
threats that have been posed by Olpers to seasoned players like Haleeb Milk in dairy
industry. As discussed earlier, when Olpers was launched they aggressively advertised
themselves. Generally, women select the brand of milk that suits their children or for the
regular use in homes of Pakistan. It is the nature of women that they are attracted towards
something more quickly than men. That is where OLPERS outsmarted the seasoned
competitors by advertising aggressively between 3.00 PM to 5.00 PM and from 8.00 PM to
9.00 PM, as this is the time when most women switch to television and that is the time
when Olpers imposed itself in the mind of Pakistani women who generally make decisions
which brand of milk to use or not. This is where Haleeb Foods is perhaps lagging behind
other dairy industry competitors. It has been proved through research that Olpers have
advertised itself 60% more than Haleeb milk. Good Promotion always plays an important
role in the success of any product. A good product can fail if it is not properly promoted.
There are serious concerns about the advertisement of Haleeb Milk for me. They have
really limited the use of their product through their own advertisement by saying “CHAYE
BANAYE KHOOB HALEEB”. There are serious concerns for me they are themselves
saying that their milk is only tea purpose through this campaign, so what about drinking
HALEEB MILK. Is it harmful to drink HALEEB Milk? If we closely look at the ads of
Olpers or even Milk Pak they show various uses of their milk in one add. In, Olpers latest
advertisement we see that they have shown an old man and a child drinking the milk. It
shows that their milk is suited for old people as well as young generation of Pakistan. They
obviously show that it is good for making tea but also show its usefulness in making sweet
dishes through their advertisement. For me ENGRO FOODS has beautifully read the
lifestyle of large population of Pakistan. They have shown five or six uses of their milk in
one advertisement. Would you like to buy a product that has one use or six uses? So, where

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is Haleeb FOODS thinking tank? They have themselves limited the use of their product.
That is one of the flaws in HALEEB FOODS advertising. Another thing as far as their
advertisement is that for at least past five or six years they were having “SADIA IMAM” in
their advertisement except their last last advertisement. Whereas, ENGRO FOODS has
come up with most attractive and gorgeous models of Pakistan in their advertisements. In
the recent advertisement of HALEEB FOODS they have come up with old ZEBA
BAKHTIAR and SHAAN. People are more attracted towards fresh gorgeous faces rather
than old beautiful faces. So, selection of somebody who is representing your brand is also
very important. We also see in the advertisement of our neighbor country that Katrina Kaif
is the brand ambassador of most famous brands of India (16 to be precise). It is not that she
is most beautiful but because she is most liked, famous and most demanded at present
times. So, you need somebody who is most popular, liked and most demanded at present
time to make your advertisement most attractive. That is also a field where OLPERS has
outsmarted Haleeb Milk to grab a good potion of market share in the recent years. Frequent
and timely advertisement is something that is concern to entire HALEEB FOODS LTD not
only to their milk. There is no proper portfolio management of Haleeb Foods as they have a
number of products in which they are operating. There are still a large number of products
that have not advertised yet and hardly anyone is aware that they are launched or available
in the market. People don’t know about the most of the products of HALEEB FOODS
LIMITED like DAIZY CHEEZ, DAIZY YOGURT, SKIMMZ POWDER MILK and
SKIMMZ liquid milk. So how can you succeed if people don’t know that your products are
available in the market? There is no awareness campaigns by HALEEB FOODS as they are
pioneers of UHT Milk concept, ISO certified company, 10 billions of annual turnover and
serving since 26 years. There is no cross merchandise promotion(Retail selling technique in
which purchase of one item allows an automatic discount on a different but related product)
as far as HALEEB FOODS is concerned. Firms like nestle has nicely adopted this strategy.
HALLEB FOODS LIMITED hasn’t also done a lot to improve relationship marketing
approach. So, proper marketing of the product line of HALEEB FOODS LIMITED is the
need of the hour to stay up with the competition. HALEEB FOODS really need to change
itself because those who don’t change with the passage of time have fates like SHAMANO

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CYCLES. You can’t succeed in the prevailing ruthless competition without staying ahead
of competition.

OTHER CHALLENGES FACED BY HALEEB FOODS LIMITED

• Centralized decision making

• No proper strategy formulation and lack of strategy implementation plan

• No sales on credit

• Baised view of consumer due to haleebs thickness

• More focusing on exports as there is large opportunity in local market

• Conutless departments and all have separate departments.

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