Strategic Marketing Haleeb Foods

Strategic Marketing Plan
For The HALEEB FOODS (JUICES) January 1, 2004 to December 31, 2006
Prepared by: HORIZON Date: 2nd October, 2006

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We at first bow my head before Allah Almighty who bestowed his countless blessings upon me, guided me towards the way of success, blessed me with courage of facing problems and obstacles; enable us to accomplish this project work. All thanks to Allah Almighty, the most Beneficent and Gracious who enabled us to complete this project. We found no words to say thanks to our families for their cooperation and support. We wish to place our deep sense of thanks to SIR SOHAIL ISLAM who guided us to complete this project in its true sense. His valuable experience and knowledge of the field removed the difficult at all crucial junctures.
We are dedicating our project of SAGA Sports to our respected teacher Sir Sohail Islam for his effort to transfer the essence of his experience and knowledge to his students.
Executive summary
Haleeb Foods was established in 1983. Since then it has continued to provide quality products to its customers with products and packaging innovations. Haleeb is Pakistans number 1 and fastest growing food company. The company is trying their level best to differentiate themselves from other local companies and trying to win the competition in juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. This project report covers the broad area of impacts of controllable and uncontrollable variables in remote environment for the company, like economic boom or slump, segmentation on the basis of cultural likings and disliking of the consumers along with the social set up and their purchase behavior, food laws, taxation, import duties and the technological advancements. This report also provides the information how these variables pose threats and offer opportunities for the company and how the company should neutralize threats and exploits opportunities. An important part of this project report comprises the market situation in which Haleeb is competing. Market acceptability of its products and the upcoming trends regarding to juices and drinks are also discussed. A detailed information about competitors like Nestle which is also the market leader and Shezan, and how they are affecting the company is also provided. An overview of distribution system and criteria of Haleeb in case of juices. A brief description of the companys marketing, non marketing and managements capability is given which tells us about the companys internal strengths and weaknesses. Then comes the most important portion of the companys operations, which is the strategic management of marketing mix I-e 4Ps. A comprehensive detail is provided about the companys strategies devised to maintain and develop the product line (juices), strategies to set and quote the prices, their distribution patterns and logistics. The image Haleeb wants to develop in the minds of their customer and the extent to which they are succeeded through their promotional campaigns is explained in this report.
The future expectation and objectives about the companys financial position for next few years and the ratio analysis helps us to conduct the budgeting for the company. An additional portion of this report including the swot analysis, twos matrix, CPM, QSPM and others explain the strategic position of the company. Haleeb Foods has built yet another plant in Rahim Yar Khan whose purpose is to provide Haleebs quality products to maximum number of consumers. And a plan to extend their product line in case of juices and has an intention to introduce new flavors of pure juices, nectars and juice drinks.
Contents
History Sporting goods Situation analysis Main exports of firm Basic information Nike sacks saga sports Nike to resume football production in Pakistan Technological forces Natural environment forces External environment near environment Market review Competitive review Distribution channels and buyers (intermediary customers) End user customers Supply Critical success factors Summary of opportunities Summary of threats Situation analysis Internal capabilities Non-marketing capabilities Marketing capabilities Management Marketing capabilities Marketing strategies and performance Problems and opportunities statement Marketing objectives and higher level marketing strategies Marketing mix strategies Analysis portion Financial Analysis Evaluation and control processes Analysis Portion Appendix 1: Worksheet for developing marketing objectives and higher-level marketing strategies 28 4 8 9 9 14
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52 53 57 75 84 27
INTRODUCTION
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 Paks 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.
T T T T T T T T
All this and more makes Haleeb Foods Pakistans number 1 and fastest growing packaged food company. As of fiscal 2005, its annual turnover is Rs. 7.2 billion.
International Certifications
TU UT
Haleeb Foods products are made with great care, and marked with our quality seal of recognition. We are the only dairy company in Pakistan that undertakes 21 rigorous quality control tests on every portion of the milk collected by our teams. These internationally recognized tests are used to check for: a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents. All processes, from preparation to quality assurance to packaging, are undertaken employing state-of-the-art technology and equipment. Therefore, we take great pride in the fact that Haleeb Foods is the only food company in Pakistan that has the following international certifications of quality and prestige:
HACCP (in process controls for safer products)
ISO 9002 (better quality for greater customer satisfaction) ISO 14000 (environment-friendly operations)
SITUATION ANALYSIS
Business definition and scope
Mission statement(s)
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
Product definition
At the industry level (total of all product categories):
The product under consideration in this project report belongs to the beverage industry. And are the fruit juices.
At each product category level
Product category: I
A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. Six premium juices Apple Pineapple Red grape Mango Orange and Mixed fruit Give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product category II
Delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Fun day juices will surely be an instant success with kids with their unique and amusing names, Aamonka (mango) and Arrochee (peach and lychee). They are packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product Category III

The premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavours: Apple Mango, and Mix fruit These juice drinks are packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product categories targeted by our organisation and our products competing in those categories
Product category Pure juices Pure juices Nectars Nectars Juice drinks Juice drinks Competitors products
Competitors and their products competing in these product categories:

Competitors Competing products
Pure juices ,nectars and juice drinks (other than red blood keno) Nestle Pure juices ,nectars and juice drinks (other than red blood keno) Shezan
The market Customers (end users) for the product categories targeted by our organisation
Charecteristics of the customers for the products of categories targeted by our organisation include:
Category I
Income: People having income 50,000 and above.
Age:
Youth an old age people are taken as the most important targets
Gender:
Females in emphasis, while males also are considered
Family-size Life-cycle stage
All family sizes That life cycle stage is given more importance which includes more young people A class superstores and grocery stores in the high traffic markets in posh areas of all the cities of distribution throughout the Pakistan. These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and dont include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices.
Geographic location
Use situation
Scope
Scope of their target market In this segment is not very broad, becase they are foccussing only elite class of the country, which are very fewer in number. But at the same time the current and projected sales are not very small. Because of theuse situation which explains that These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these
are highly energetic and hygienic and dont include sugar and artificial flavors so patients of different diseases including diabetese may also use these juices and brand loyality in this case may lead to strong purchases.
Category II
Scope
Scope of this market segment is satisfactory because they are targeting middle class of society which include relatively greater number of population as compared to that of upper class. They are expecting larger sales in this segment.
1. Income:
People having income Rs. 30,000-35,000 are included in this segment.
Age:
All age groups are considered such as: children, youth and old age. Both genders i-e male and female are included in its target consumers.
1. Gender:
Family-size Life-cycle stage Geographic location
All family sizes Every stage of the life-cycle is considered. High-class as well as middle super stores in high traffic markets of both posh areas as well as middle class towns and colonies of big cities throughout the Pakistan are targeted. These Nectars are offered to that class of society that are sophisticated, quality conscious but cannot afford as much high prices as of Good Day. Its hygienic packaging also attracts health conscious people.
Life- style
Category III Income:

People having low income level and the children who are not earning hand and are dependent on pocket money are included in this segment. School going children and college students are given high importance while people of all other age groups are considered as target groups. Both genders i-e male and female are included in its target consumers Through out the Pakistan in both privileged and un-privileged areas. These are the simple drinks, which are used in school/college canteens, parks, small shops at roadsides, bus stops and on small and large general stores in streets etc.
Age:
1. Gender:
2. Geographic location: 3. Use situation/occasion:
Scope
Scope of this segment is very broad as they are focussing each and every person in middle and lower clas. The scope of this segment can be estimated from this calculation that Haeeb is selling 800,000 units of juice drink specific for this segment.
SITUATION ANALYSIS
Business definition and scope
Mission statement(s)
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
Product definition
At the industry level (total of all product categories): The product under consideration in this project report belongs to the beverage industry. And are the fruit juices.
At each product category level Product category: I

A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. Six premium juices Apple Pineapple Red grape Mango Orange and Mixed fruit Give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product category II
Delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Fun day juices will surely be an instant success with kids with their unique and amusing names, Aamonka (mango) and Arrochee (peach and lychee). They are packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product Category III

The premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavours: Apple Mango, and Mix fruit These juice drinks are packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Product categories targeted by our organisation and our products competing in those categories
Product category Pure juices Pure juices Nectars Nectars Juice drinks Juice drinks Competitors products
Competitors and their products competing in these product categories:

Competitors Nestle Pure juices ,nectars and juice drinks (other than red blood keno) Shezan Competing products Pure juices ,nectars and juice drinks (other than red blood keno)
The market Customers (end users) for the product categories targeted by our organisation
Charecteristics of the customers for the products of categories targeted by our organisation include:
External environment remote environment

Economic forces
Scenario Inflation & Interest Rate:
U
Now in Pakistan inflation rate is almost 9% so if increase in inflation rate then increase in prices of HALEEB JUICES but if in Pakistan economy deflation when no decrease or effect on prices of HALEEB JUICES. About interest rate HALEED FOODS has own equity so no pay any interest.
Personal Saving Rate:

Personal saving rate of HALEEB is 5%
Disposable & Discretionary Income:
Disposable & Discretionary Income of HALEEB is 95%.
Business Saving Rate:
Business Saving Rate of HALEEB is 10%.
Energy Availability & Cost:
Energy is easily available and cost on energy for HALEEB Rs.50m.
Budget Deficit OR Surplus:

There is no deficit but 8% surplus of HALEEB.
Rate of risk:
For HALEEB FOODS Rate of risk is 5%.
Overall HALEEB FOODS business cycle:
BUSINES LIFE CYCLE
Sales
Introduction
Growth
Maturity
Decline
Time
Implications
High market size Low tax rate Economic development
Opportunities
5 2 3
Rating
New rivals Strong competition Increasing rate of inflation.
Threats
5 3 4
Rating
*
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#
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Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5), quite to highly significant (4), significant (3), reasonably significant (2) and not very significant (1). Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.
Sociocultural forces
Scenario Workforce diversity:
In HALEEB FOODS Exists work force diversity.
Women in the workforce:

Just 15 female works but 400 male work in HALLEB office.
Environmental concerns:
About the environmental concerns of HALLEB is good health.
Work life quality:

Quality of work life is very safer & environment friendly
Lifestyle changes:
They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer.
Consumer activism:
Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them.
Concerns about environment:

HALEEB FOODS do concern for environment they provide environment friendly situation for employee as well as to customer for the well being of country.
Implications
Opportunities Rating Threats Rating
4 Good quality 3 products Living standard of people is becoming 5 good Increasing workforce
High prices Low awareness of product Trend of using imported juices. Low promotional activities Less display.
3 3 3 5 3
Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5), quite to highly significant (4), significant (3), reasonably significant (2) and not very significant (1). The probability of occurrence ranges from high probability of occurrence (5) to not likely to occur in this time horizon (1). For
example a rating of 53 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.
Political or legal forces

Scenario Taxation Laws
Juices have no tax except sales tax. But the product having more tax is butter and cream.
Labour Laws
Labour is being privileged here having all the laws.
Laws on hiring & promotions

Hiring & promotion is followed by law. People with better capabilities are privileged because they deserve it, for the betterment of the organization. As well as a well educated & skilled experienced person is a precious asset for the company suit should be hired on better term & conditions and be promoted on the basis of it capabilities.
Environmental protection Laws

They do concern for environment and contribute more and more for the betterment of environment.
Foreign trade Regulations

Foreign trade regulation does not effect the over all policy and the working of the HALEEB FOOD because they do operate nationally not internationally.
Attitudes towards foreign companies
They have no any agreement with any foreign company but if any company will offer the business to them related / unrelated they would think about it according to terms and conditions.
Stability of Government
It does not affect the HALEEB FIIDS. Because government does not offer any subsidy to them. About importing the martial have no restriction imposed by government. Government does concern for the documentation bout the registration of the company. Afterwards just sales tax is paid to it. Government stability have effect in HALEEB FOODS
Implications
No restriction imposed by government
Government encourages new players High tax rate Changes in Custom duties on plump.
3 3 5
Note Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5), quite to highly significant (4), significant (3), reasonably significant (2) and not very significant (1). The probability of occurrence ranges from high probability of occurrence (5) to not likely to occur in this time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that has a reasonable likelihood of occurrence.
Technological forces
Scenario New Products
HALEEB FOODS s focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So HALEEB FOODS is diversifying according to changing demand of customers and trends. I concentric diversification HALEEB FOODS cheese .
Product innovation
Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order totakal the situation HALEEB FOODS is focusing on product innovation by introducing juices and with the passage of time HALEEB FOODS will introduce new flavors in juices. There fore HALEEB FOODS in future introduce guava and apricot flavors in GODD DAY juices.
Productivity improvement through automation

Automation dont matter a lot but to some extent it contribute towards productivity and improvement. Imported pulp is filled in machines for processing after the final form of juice it is packed in 250 and 1 liter packing.
Total spending on R&D

Spending on R&D is long term investment for any organization. HALEEB FOODS has R&D department head of R&D department is Mr Arshad Bhati. HALEEB FOODS total spending on R&D 70 millions.
New communication technology

All the modern as well as traditional ways of communication are being adopted by HALEEB FOODS including own emails, letters, faxes and monthly visit in different offices of HALEEB FOODS for better communication among supplier, distributor and customers. HALEEB FOODS has also established own web site which can be visited any one for most recent news innovation and activities being taken in the organization. Current job vacancies are also available HALEEB FOODS web site.
Implications
Technological advancement in HALEEBs operations as for as local operation are concerned
5 Technological advancement of Nestle as they are market leader & doing juice manufacturing on 5 automated machines. High cost to pay for 4 advanced machinery. Processing of pulp is very costly.
Natural environment forces

Scenario Major Natural raw material
Major Natural raw materials of HALEEB FOODS are different pulp of fruits such as mango, apple, pineapple, red grapes, orange from Germany and France. This raw material is process in HALEEB FOODS Bhai pharo plant not in Rahim Yar Khan plant. The natural environment not suitable for them as for as juices are concerns. If we talk about dairy products. The natural environment is suitable. HALEEB FOODS is having control over the quality of dairy products because they have to check the quality in dairy forms.
External Environment Near Environment

Market review
Description
Monopolistic competition prevails in market. The juice market is fragmented. Their are competitor local as well as international who have make competition tough. HALEEB FOODS deals all the segments including demographic, psychographic as well as behavioral. All Juices including GOOD DAY,TROPICO are available all over the Pakistan. The product benefit to customer is its fat free for diet conscious People. They do in contact with customer and they are diversifying according the requirements of customers.
Implications
Opportunities The concentric diversification in different juices products. There are a lot of untapped markets in different areas of Pakistan.
Rating 4
Threats Competition with NESTLE New entrant Diversification of
Rating 5
3 3
existing companies Imported tin juices are great threat for 4
HALEEB FOODS can be market leader by introducing new flavors in juices Haleeb Foods Company can become multinational and can target different market of different countries. 4
good day.
Competitive review
Evaluating that how organization is competing in the market place to take advantage of opportunities & over coming the threats in order to take competitive advantage over the rivals. In order to evaluate the competitive position we have to take a look on the competitors of HALEEB FOODS in JUICE CATEGORY.
Key Competitors 1. Nestle 2. Maza 3. Shezan 4. Country 5. Nurpur 6. Malee
Nestle and Shezan are the main competitor of HALEEB FOODS offering pure juices. But the others are not offering the pure juices. Competitors including Maza Country & Nurpur are competitor in nectar.
Nestle
It is a multinational company operating in broad range of products but from the juices point of view HALEEB FOODS consider it the competitor. Nestle has strong financial backup its requirements to retailer, distributor are most sophisticated as compared to HALEEB FOODS. Nestl is a Swiss-German word which means Little Nest which is its trademark. Nestle is the worlds number one food company.5th largest company of the world according to its turnover.2 million 20 thousand people employed from all over the world. Present in 80 countries of the globe having 500 factories. Over 700 products renovated or innovated in the past five years, with wellness in mind.
As the business of juices is profitable many new competitors are entering in the market. Some existing companies are also going to diversify and introduce the juice category as Nurpurhas introduced itself with dairy products but diversified to nactor. HALEEB FOODS pursue the strategies of the competitor so it is market follower not market leader.
Nestle is Pioneer in the Tetrapak premium nectar and drinks range it has launched Nestle juices, nectars & drinks 1999. Heavy trial generation activities at launch No trial generation activities in recent years Low media presence print, electronic Heavy outdoor presence Strong focus on brand visibility in-store Focus on corporate branding at alternative channels & institutional sales Focus on product & packaging innovation launch new variants each year launch portion pack launch portion pack in novel packaging type launch 1 Ltr TBA with recap/pull tab feature
Shezan
Strong local name in the juice and drinks range Launched Shezan Orange Launched Twist (nectars) 2003 Aggressive marketing campaign print, electronic Shezan All Pure 2004 No trial generation activities
No consumer reward/loyalty CPs Available packaging options Shezan All Pure Nectars Twist Shezan nectars 1 Ltr TBA 1 Ltr TBA
IMPLICATIONS Opportunities People are becoming quality conscious. Usage rate of juices is increasing HALEEB FOODS can be market leader by 4 making good . Focus on untapped market. 3 3 Rating Threats 4 Competition with NESTLE New product advancement by different competitors. Different strategies adopted by competitors Nestle in juices products Competitor in nectar have more customer loyalty. 4 4 3 Rating 5
Distribution channels and buyers (intermediary customers)

Description
HALEEB
FOODS Have distribution channels in all over the Pakistan
excluding some none developed areas. The Nectar juices are available every where. But due to high price its juices in purity available on superstore where upper class people shop. For the concise detail of distributors a form is attached as appendix at the end but the thing which was note able that HALEEB FOODS do not ask for qualification of the distributor but their main concern is the financial background and how much experience they have. A part from these requirements they do ask infrastructure of distribution centre, warehouse etc.
They have set performance appraisal system for its distributors. For the sale of specific target set by HALEEB FOODS distributor would get cash bonus as well as good performance certificate. It motivates distributor to do more & more for the sale as well as well being of the company which is ultimately his own well being.
Implications
Opportunities By increasing bonus on target sales can increase in sales By extending their distribution to non developer & distant areas as niche marketing Developing distribution channel to untapped areas. Motivate distributor to work hard for better results.
Rating 3
Threats Strong distribution channel of competitor can attract the present
Rating 5
distributor. Distributor does not follow the rules of the company it can be disaster for the company.
Competitor can hire the distributor on better terms. 5
Distributor can demand more commission.
End-user customers
Description
They have segmented the market & through distributor they provide juices to end users or intermediary. HALEEB FOODS attain & retain customers through all promotional strategies like adds,billboards,broche,special packages on different events like Ramadan Jashne Azadi etc. A part from all these efforts its slogan PURITY is enough to attain & retain the customers. End user mostly consume nectar because 70 pc people live in villages they cannot afford costly juices & the main revenue of HALEEB FOODS is generated from pure juices. So in order to remain competitive they offer nectar but in order to generate revenue they offer Good Day. So end user belongs to upper class as well as to low income group & children.
Implications
Opportunities Product development on the basis of loyal customer Health & diet conscious
Rating 4
Threats End user can shift to Nestle or other competitor.
Rating 5
Competitor can use market
culture Economic development in Pakistan Least competitors in purity
penetration strategies to attain its end 4
users. Good promotional tools can convince end user to shift to other competitor. Their can be innovation which totally substitute the product. 4
Suppliers Description
The pulp is most costly & basic raw material for juice. Pineapple & red Grapes are costly. As for as supplier of Pulp is concern their main supplier are in Germany, Switzerland and some European countries. They can arrange pulp from Pakistan but its processing is very costly here and sophisticated machines are not available here so they import it. HALEEB FOODS does not purchase pulp from Pakistan because variety is not available here as well as its so costly & less quality. HALEEB FOODS have costly supplies but in near future they are going to introduce Apricot & Guava but it does not think about backward diversification because it is not just focusing on juices but trying to diversify in other areas (Cheese).It also has not enough finances to do so. New supplier not entering in the industry so that their bargaining power of supplier is high but bargaining power of Haleeb Foods is low.
Implications
Opportunities They can establish long term relation with supplier On the basis of goods term they can bound then to provide their supplies only to them If supplier are not reliable they can find out new one. They can import modern machinery from abroad instead of raw material.
Rating 4
Threats Supplier can refuse to provide raw material to
Rating 4
it if made long term contract to competitor Supplier can raise the prices of raw material 4 4
Custom duty on imported products can 3
high Government may ban the raw material
Critical success factors (CSFs)

There are a lot of factors exist in the success of a company that may be the core competences of that particular company. Haleeb is the one of the best national company, which is deal in milk products and juices. There are following of the critical success factors of the Haleeb Company:
Product Quality:
Haleeb juices are offer in market with high quality in both pure and nectar varities. Good Day offer in pure juices, Funday and Tropico in nectar juices.
Prices Competition:
In cutthroat competition Haleeb offer best suitable prices, which its all type of customers can purchase. Good Day available in market with high quality with high price where as the other juices available with normal quality and reasonable prices.
Financial position:
Haleeb has very strong position in all financial matters due to which it is adopt diversification strategies and try to bring innovation in all products to attract the new customers and retain the existing customers.
Distribution Channels:
The Strong distribution channels is the one of the best core competency of the Haleeb Company.Haleeb juices available in all areas of the Pakistan and try to deliver all products according to requirements of all areas.
Management:
Haleeb Food Company has very educated and experienced management people who are know about their fields very well. They are
cooperative and discuss each and every thing with each other so the cross sectional discussion is very common in Haleeb food Company.
Summary of Opportunities:
Significance of opportunity High Low
High
Untapped market Demand of juices o Concentric diversification
Probability Of Occurrence
Backward integration o To become multinational
Low
Untapped market and Demand of juices are the high opportunity for Haleeb and probability of occurrence is also very high so Haleeb juices sales can increases if it target the all market and demand is increase in market day by day and Haleeb also increase the demand and awareness of juices in market by best advertisement. Concentric diversification is not the high opportunity but probability and occurrence is high because the Haleeb can increase sale by little change in the flavor of juices.
Backward integration is the high opportunity foe Haleeb but probability of occurrence is low because it very difficult foe Haleeb to make its juices plump itself because Haleeb import the high quality of plump from different countries which it cant prepare due to lack of technology. To become multinational is very difficult because Nestle is the biggest competitor of Haleeb and Nestle is already a multinational company. In Pakistan Haleeb face competition only due to nestle so it is very difficult for Haleeb to compete the Nestle at international level.
Summary of threats:
Significance of threat High Low
Strong market Competition Nestle strong globally
High
Low Switching Cost Fluctuations in tax rate
Probability Of Occurrence
Imported Tin juices o Custom duties on import of plump
Low
Haleeb face strong competition in market of juices, for Good day nestle juices are big threat and for other all juices like funday and tropico shahzan, Maza and country juices are big threat. Nestle is the big and strong competitor because Nestle is an international company and people mostly know about international company due to good quality.
There is not any huge difference in prices of different juices of the company so customer can any time select juice of different company which is threat for Haleeb Food Company. The government of Pakistan changes the policies of tax on different commodities, so fluctuation in tax rate cause increases in prices of the juices. Imported tin juices are great threat for Haleeb juices especially for Good day because Haleeb offer good day in market with high quality and tin juices also focus on quality so there are competitor for each other. Haleeb import plump of all juices from different countries Germany and France, Haleeb paid high custom duties on plump, so increase in custom duty can increase the cost of juices due to which prices of all juices increase which is not good for the company.
Situation analysis Internal capabilities

Non marketing capabilities
(Financial position, management and leadership, HRM, R&D, operationsproduction capabilities and supply, interfuntional coordination and responsiveness and competitive position) REVIEW: Many of the non marketing capabilities are strengths of the Haleeb food company due to which they are very successful at national level in many products especially in milk and its related products. R&D of Haleeb is very aggressive due to which new flavors of juices comes one after an other. Financial position is very strong all on all equity .The HRM is not working up to the mark. The interfunctional coordination is very strong and the management team is very cooperative. IMPLICATIONS Strengths Financial Position R&D Interfunctional Coordination Management Production capability Rating 4 3 3 5 3 Weakness HRM Competitive position in juices Rating 3
Marketing capabilities Management

(Marketing organization, market intelligence, market planning and market control process)
REVIEW
Marketing department of the Haleeb food Company specially in juices is sufficient but not up to the requirement because for juices advertisement and promotional campaigns are conduct in different areas of Pakistan but in not all areas of Pakistan but marketing organization of Haleeb food is working well and market intelligence and marketing planning is very strong aspect of management of marketing.
IMPLICATIONS
Strengths Market intelligence Market organization Organization positioning Market planning Rating 4 3 3 4 Weakness Rating Market control process 3 Promotional campaigns 3 in juices
Problem and opportunities statement:

1. The business units capabilities in relation to critical success
factors
CSF Product Quality Management Loyalty to organization Financial stability : : : : Our capabilities Production capability and TQM Qualified and experienced work force Internal organization culture very strong Smooth cash flow based on equity financing
2. Opportunities for the business unit to exploit with existing capabilities

Target untapped market with strong distribution Satisfied demand by increasing production. Introducing the flavors of juices with the help of R&D and utilizing production capacity
3. Opportunities for the business unit to exploit with improved capabilities

Backward integration can be successfully achieved by improving technology and financial condition. By improving in all fields Haleeb can become the market leader in all products. Increasing sales by improving marketing campaigns
4. Threats which are addressed.

Strong market competition ,Haleeb facing, in pure juices due to Nestle and nectars juices due to local companies like Shahzan,Maza and country.
MARKETING OBJECTIVES AND HIGHER-LEVEL MARKETING STRATEGIES

Marketing objectives
Year 1 Revenue Objectives Gross profit margin Year 2 Year 3
45% of sale
45% of sale (every year increment) 8-10 %
45% of sale (every year increment) 8-10%
8-10 %
Segment 1 Existing products in Good day (pure) existing markets (Market penetration) ______________ Existing products in new markets Remote areas in (Market each province. development) ______________ New products in existing markets (NPD)
Red blood Keno, Guava, lechee flavors ______________
Segment 2
Fun day (Nectar) ______________
Segment 3
Tropico (drink) ______________
Remote areas in each province. ______________
Remote areas in each province. ______________
Guava and lechee flavors ______________
leeche
______________
New products in new market segments (Related diversification)
Red blood Keno, Guava, lechee flavors ______________
leeche ______________
leeche ______________
Product-market strategies
Rationale:
The rationale behind this document is to determine a clear direction for company and to define clear future objectives for the company. So as to device policies and to methods to achieve these objectives. These projections will also help the company to prepare budgets and allocation of resources to specific objectives.
Market segment 1
Segment description Young diet conscious ladies and old age health conscious people having income above 50,000 per month. The posh areas of each city of distribution are targeted.
Market segment 2
Segment description All age people having good taste for quality products. Middle class having 20,000 to 30,000 income per month. All medium(middle class) and large markets are targeted. Products/brands serving this segment Nectars (40% pulp) of apple, mango, orange and mix fruit.
Market segment 3
Segment description Lower middle class people, school/college canteens, park and other public places are targeted in each city of distribution.
Products/brands serving this segment Pure juices of apple, orange, pineapple, mango, red grapes.
Products/brands serving this segment Regular drinks in the flavors of apple, mango, orange and mix fruit.
Product/Brand positioning These juices are positioned among its users are as: Pure, healthy, hygienic and energizing juices for health conscious people".
Brand positioning Good quality and good taste juices for all occasions.
Brand positioning Fruity flavored drinks readily available everywhere.
Product strategy Class A juices available in both regular 250 ml pack individual pack as well as family pack1000 ml Pack in hygienic six layered tetra pack packaging with brand name as well as company logo printed on it. Available in apple, orange, pineapple, mango, red grape flavors. Pricing strategy High prices are set for these juices. Market skimming strategies are followed and prices are almost equal to market leader Nestle.
Product strategy Good taste and good quality nectars available in 200ml pack, packed in 6 layered tetra pack hygienic packaging with brand name as well as company logo printed on it . Available in apple, mango, orange and mix fruit flavors
Product strategy Regular sized drinks available in 250 ml individual packing and 1000ml family pack. Enclosed in 6 layered tetra pack hygienic packaging with brand name as well as company logo printed on it . Available in apple, mango and mix fruit flavors.
Pricing strategy High prices are set for these juices. Market skimming strategies are followed and prices are almost equal to market leader Nestle.
Pricing strategy Low prices are set for these juices . Market penetration Strategies are set for the pricing of these juices.
Distribution strategy Distributed to high-class super stores in posh areas of each city. Placed on prominent places on the shelves of the store.
Distribution strategy Distributed to high-class super stores in posh areas of each city. Placed on prominent places on the shelves of the store.
Distribution strategy Distributed to each and every possible market throughout the country.
IMC strategy* T.V adds, signboards, holdings, personal selling, sales promotion, in-store activities.
IMC strategy* T.V adds, signboards, holdings, personal selling, sales promotion, in-store activities.
IMC strategy* Advertisement on television.
Marketing mix strategies for segment

Segment description Segment : I Category: A+
1. Income: People having income 50,000 and above are included in the target market. 2. Age: Youth an old age people are taken as the most important targets in case of Good Day pure juices. 3. Gender: Females in emphasis, while males also are considered as a part of target market. 4. Family size: All family sizes either small or large, either single or married all are included in its target segment.
5. Life-cycle stage:
That life cycle stage is given more importance which includes more young people either males or females.
6. Geographic Location:
A class superstores and grocery stores in the high traffic markets in posh areas of all the cities of distribution throughout the Pakistan.
7. Life Style: Good Day pure juices are highly meant for sophisticated, diet and weight conscious, health conscious, smart and self-conscious people who give a great importance to hygienic food. 8. Use situation/occasion: These pure juices are a part of breakfast. But they may also be used throughout the day. As these juices are a sort of energizers, so they are also used after exercise. As these are highly energetic and hygienic and dont include sugar and artificial flavors so patients of different diseases including diabetes may also use these juices.
9. Prior experience:
It is an important variable as far as any eatable product is concerned. Because if any customer who has already tested theses juices and has gained its nutritional benefits and had enjoyed its good taste odor then he/she will surely be attracted towards its reuse. 10. Purchase behavior: In the case of Good Day juices the size of purchase is not very small because they are the part of breakfast which is taken daily and are used after exercise so are the part of routine and the brand loyal customers will purchase it on consistent basis.
Products/brands servicing this segment

Products offered in this segment include :
Product name:
Good Day A range of 100% pure juices with the essence of four fruits in each glass, without any added sugar, flavours or preservatives. For consumption absolutely anywhere and anytime, Good Days six premium juices (apple, pineapple, red grape, mango, orange, and mixed fruit) give you the absolute delight in taste, and revitalizes you at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging. They are offer in tow sizes:
250 ml Pack: 27 Packs/Cartons 1000 ml Pack: 12 Packs/Carton
Product/brand positioning
These juices are positioned among its users are as: Pure, healthy, hygienic and energizing juices for health conscious people".
Proposed marketing mix strategies

Marketing Mix The marketing mix is the set of controllable tactical marketing tools, product, price place and promotion that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. The 4 Ps of marketing mix are: Product Price Place Promotion Product Variety price Quality Discounts Feature period Brand name Packaging Targeted Customers Intended positioning Payment Price List
Promotion
Place Advertising Channel Personal selling Coverage Sales promotion Locations Public relations Inventory Transportations
Marketing mix strategies means the ways to strategically handle the important issues like product or product line management, devising pricing strategies, successful distribution of the products at their destination locations and the way to communicate with people to create awareness in them about the products that makes them ready to purchase the products.
PRODUCT
Product means the goods and services combination the company offer to the targeted market and customers. Products include physical objects, services, events, persons, places, organization, ideas, or mixes of these entities.
Product/brand positioning
It is positioned among its customers as nutritious, energizing and tasteful drink. That is specially made for smart, healthy and energetic people.
Product Strategies
Product strategies are designed in a sequential manner as : Product attributes Branding
Packaging
Labeling
Product support services ( in case of services)
Product attributes
a) Ingredients:
In case of all pure juices the ingredients contain 100% pure pulp of that fruit Other ingredients include: Sodium 0 0% Carbohydrate 33gm 11% Protein 1 gm 2% Vitamin C 24mg/100ml 100% The above pattern is followed in case of all pure juices with slight variation.
b) Quality:
Major feature is the quality. According to HALEEB quality is that:
Our customers comeback and not the product.
Its other features include:

Rich color Fresh taste and smell. Long expiry date.
c)
Branding:
The name of Haleeb and its insignia (-------) are printed on its pack. Besides this the pictures of the specific fruit in attractive color are also printed on its pack.
d)
Packaging:
A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container.
e) Labeling:
Other labeling printed on the pack includes ingredients, expiry date, price and batch number.
Pricing strategies
In case of good day juices, the prices are quoted on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Psychological pricing For Good day juices the psychological pricing is also used, i-e high prices are quoted , which reflect product positioning, as high price for high quality.
Price Structure:
(consumer price)
250ml 15 Rs. 1000 ml 56 Rs. (mango and orange) 1000ml 75 Rs. (Pinapple and red grapes) As they are market followers, they respond to the price strategy of market leader (Nestle) in following manner: Hold current price; continue to monitor competitors price.
Has competitor cut prices
Yes Will lower price Negatively affect our Market share & profits? Reduce price Yes Raise perceived quality
Can/should effective Action be taken?
No
Improve quality And increase price
Launch low-price Fighting brand
Place/Distribution Strategies
This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributors storage place which should be neat, clean and up to the mark, his motor vehicle etc. Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered.
Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers. Good day juices are distributed to all the A class superstores of high traffic markets of posh areas. For example in case of Lahore the areas of high availability are Model Town, Liberty, Anarkali, Pace, etc.
Multi Channel Distribution System
They use a multi channel distribution system, which means that A distribution system in which a single firm sets up two or more marketing channels to reach one or more customers. It works in following manner:
Telephone, Internet Customer segment 1 Retailer Producer Distributors Sales force Dealers Customer segment 1 Customer segment 2 Customer segment 2
Above figure explains that the company may sell its products directly to customer segment 1 and at the same time they can also reach this segment through retailers and whole sellers. While the company may reach the segment 2 directly through their sales force via personal selling. And at the same time they can reach this segment through a complex system of distributors and dealers.
Promotional Strategies
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Good day juices following promotional strategies are used:
1.
Advertisement
Television adds are used. In addition to this adds on newspapers and magazines are also published. Other advertisement tools include holdings and sign boards.
2. Personal selling
When HALEEB introduces any new flavor of Good day, the highly emphasize personal selling as it develops a interaction between user, product and company representative. The sales force records the reaction of the consumers towards the product that further helps the company to estimate and foresee the acceptability of product among the customers.
3. Sales Promotion through in-store activities

The introduction of a new product is also facilitated through in-store activities which means that company representatives are present in the store and they interact with each customer entering in the store they offer them to taste the free samples of the product and also offer some discounts and free samples. 4. Sales promotion for retailers, whole sellers and distributors. While introducing new flavors of Good Day juices, special discounts and free samples are offered to distributors based on the quantity of bulk purchase.
Segment description (Segment II)

Category: B+ 1. Income:
People having income Rs. 25,000-30,000 per month are included in this segment. 2. Age: All age groups are considered such as: children, youth and old age. 3. Gender: Both genders i-e male and female are included in its target consumers. 4. Family size: Each family size is considered. 5. Family Life-cycle stage: Every stage of the life-cycle is considered. 6. Geographic location: High-class as well as middle super stores in high traffic markets of both posh areas as well as middle class towns and colonies of big cities throughout the Pakistan are targeted. 7. Life style: These Nectars are offered to that class of society that are sophisticated, quality conscious but cannot afford as much high prices as of Good Day. Its hygienic packaging also attracts health conscious people. 8. Use situation/occasion: These juices are not specially meant for special occasions like breakfast etc but people may use them as a part of their meal. Fun Day Nectars represent good quality and good taste drinks for any occasion. 9. Prior experience: Previous usage of these drinks will motivate its consumer for repurchase due to its quality and taste. 10. Purchase behavior: As far as the sale frequency of these juices is concerned, it lies in moderate range. Because it is not occasion specific, People may or may not use it on consistent basis. Here most important matter is the brand loyalty. Its frequent use is expected mostly from the brand loyal people.

Products offered to this segment are:
Product Name: Fun Day
Nectars in following flavors:
Haleeb Funday is a delicious juice drink especially for kids, enriched with calcium, and vitamins A, C & D. An exciting treat, packed with health and a great taste, Funday juices will surely be an instant success with kids with their unique and amusing names, Aamonka (mango) and Arrochee (peach and lychee).
Size: Fun day is offered in tow different sizes : 200ml Pack: 36 Packs /Carton Shrink wrap units 200ml Pack: 27 Packs/Carton
Product/brand positioning It is positioned among its consumers as a good in taste drink.

Product Strategies
Product strategies are designed in a sequential manner as :
Product attributes Branding
Packaging
Labeling
Product support services ( in case of services)
Product attributes
a. Ingredients:
In case of nectars 40% pulp of any specified fruit is added in case of each fruit, While other 60% are the artificial flavors. Fruit pulp, sugar, citric acid, Permitted food stabilizer (E-466), Preservatives: (E- 211), Color: (E-110).
b. Quality:
It is also good in quality because the pulp portion as well as the artificial flavor portion both are high quality, harmless and good in taste and smell. c. Its other features like Good Day, include: Rich color Fresh taste and smell. Long expiry date. d. Branding: The name of Haleeb and its insignia (-------) are printed on its pack. Besides this the pictures of the specific fruit in attractive color are also printed on its pack.
e. Packaging A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container. f. Labeling Other labeling printed on the pack includes ingredients, expiry date, price and batch number.
Pricing strategies
In case of good day juices, the prices are quoted on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Its prices are set following the prices of the competitors prices for same product. This is due to the reason that HALEEB claims that the quality of their product is similar to that of market leader which is Nestle.
Consumer price: 200 ml: 10 Rs. Tropico 200ml : 10
Place/Distribution Strategies
This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributors storage place which should be neat, clean and up to the mark, his motor vehicle etc. Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered. Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers. Fun day juices are distributed to all the high class as well as middle class superstores of high traffic markets in all the areas of distribution throughout the country. For example in case of Lahore the areas of high availability are Allama Iqbal town, etc.
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Good day juices following promotional strategies are used:
1. Advertisement
Television adds are used. In addition to this adds on newspapers and magazines are also published. Other advertisement tools include holdings and sign boards. 4. Personal selling To launch any new flavor of Fun Day personal selling is considered only at few places.
3. Sales Promotion through in-store activities
In case of Fun Day sales promotion through in-store activity is not conducted.
4. Discounts for whole sellers and free samples for distributors
Another way of sales promotion adopted to introduce new flavors is to give discounts to retailers and to give free samples to distributors. Incase of retailers discounts are based upon frequent and bulk purchases.
Segment description (Segment III)

Category: B
4. Income: People having low income level and the children who are not earning hand and are dependent on pocket money are included in this segment. 5. Age: School going children and college students are given high importance while people of all other age groups are considered as target groups. 6. Gender: Both genders i-e male and female are included in its target consumers.. 7. Geographic location: Through out the Pakistan in both privileged and un-privileged areas. 8. Use situation/occasion: These are the simple drinks, which are used in school/college canteens, parks, small shops at roadsides, bus stops and on small and large general stores in streets etc. Frequency of purchase It is most frequently purchased drink among all other HALEEB juices. About 800.000 units are sold daily. All
other segmentation variables like family size, family life cycle stage, life style etc are not considered in this segment.

Products offered to this segment are: Product name:
Tropico With the quality assurance of Haleeb Foods, Tropico is the premium juice drink, superior in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three flavors: apple, mango, and mix fruit Size: 1000ml Pack: 12 Packs/Carton 250 ml pack: 36 packs/carton 250ml Pack: 27 Packs/Cartons
Product/brand positioning It is positioned among its consumers as readily available drink.

Product Strategies Product strategies are designed in a sequential manner as :
Product attributes Branding
Packaging
Labeling
Product support services
Product attributes
Ingredients:
Fruit pulp, sugar, citric acid, Permitted food stabilizer (E-466), Preservatives: (E- 211), Color: (E-110).
a. Quality:
The artificial flavors used in these drinks are of good quality.

b. Branding:
The name of Haleeb and its insignia (-------) are printed on its pack. Besides this the pictures of the specific fruit in attractive color are also printed on its pack.
c. Packaging
A four cornered square pack, made of highly hygienic, six layered tetra pack is used as container.
d. Labeling
Other labeling printed on the pack includes ingredients, expiry date, price and batch number.
Pricing strategies
Bottom or Lowest prices are set for these drinks, And penetration strategies are implemented in this segment.
Price structure Consumer price ; 200 ml :8 Rs.
Place/Distribution Strategies This product is distributed through authorized distributors, who are selected on a tough criteria, i-e qualification, previous experience of the same field, distributors storage place which should be neat, clean and up to the mark, his motor vehicle etc. Proper planning by following demand and supply rule carries out distribution. Also the distribution strategy of the competitors is considered. Inventory level of juices in the godowns of the distributors is always kept more than demand so as to fulfill the demand of potential customers. Tropico drink is distributed to all possible location throughout the country.
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. In case of promotional campaign of HALEEB Tropico drinks following promotional strategies are used: 1. Advertisement In case of Tropico drinks only television adds and the adds on newspapers and magazines are used as promotional tool.
SWOT Analysis
Strengths:
Haleeb Foods is the largest National Food Company. Strong brand loyalty of customers of Haleeb company. Haleeb Company has monopoly situation in different flavors of pure juices. Haleeb foods have best distribution channel in all over the Pakistan. Haleeb offer high quality products especially pure juices in market. Management team of Haleeb Company is very strong and educated. Haleeb foods have strong positioning in customer mind.
Weakness:
Less product awareness in customer mind. Packaging of juices product is not good, and not so much attractive. Haleeb company has very high prices in pure juices like apple, pineapple, mix fruit, red grapes mango flavor. Haleeb Company conducts less promotional activities for its juice products. Less display centers use for juices products in main shops of different cities. Haleeb Foods Company has late recovery of claims.
Opportunities:
There are a lot of untapped markets in different areas of Pakistan. The concentric diversification in different juices products. Backward integration can use in juice products of Haleeb Company. Haleeb Foods Company can become multinational and can target different market of different countries.
Threats:
There is strong competition in food products market. Different strategies adopted by competitors Nestle in juices products New product advancement by different competitors. Government policy changes and fluctuation in tax rates on food items. Imported tin juices are great threat for good day. Changes in Custom duties on plump.
Internal factors evaluation (IFE)

Haleeb Foods Company Internal Factors
STRENGTHS

Weight
Rating
Weighted Score 0.2

0.4 0.45 0.1 0.4 0.3 0.15
Largest National food company

Strong brand loyalty Monopoly situation in pure juices Product positioning Strong distribution channel High quality products Strong management team WEAKNESS Product awareness in customer mind Not good packaging Higher prices in pure juices Low promotion activities Less display centers Late recovery of claims
0.05
0.10 0.15 0.05 0.10 0.10 0.05
4
4 3 2 4 3 3
0.05 0.10 0.05 0.10 0.05 0.05
3 2 3 4 3 2
0.15 0.2 0.15 0.4 0.15 0.1
Total weighted Score
1.00
3.15
The industry average is 3.5 so the IFES of the Haleeb Food company is not good in juices according to the average of the industry
External factors evaluation (EFE)

Haleeb Foods Company External Factors
OPPORTUNITIES Untapped market Diversification in products Backward integration International markets
THREATS
Weight
Rating
Weighted Score
0.8 0.3 0.45
0.1
0.20 0.10 0.15

0.05
4 3 3
2
High market competition Strong competitor Nestle in juices Products advancement Fluctuation in tax rates Imported juices Custom duties on plump
0.10 0.15 0.05 0.05 0.05 0.10
3 4 3 2 2 2
0.3 0.6 0.15 0.1 0.1 0.2
TOTAL
1.00
3.1
The industry average is 3.5 so the EFES of the Haleeb Food company is not good in juices according to the average of the industry.
CPM (Competitive profile matrix)

Haleeb Nestle Shahzan
Rating Score 2 3 3 3 2 4 3 0.4 0.3 0.6 0.45 0.2 0.6 0.3 Critical Success Weight Rating Score Rating Score Factor Product quality 0.20 3 0.6 4 0.8 Prices 0.10 4 0.4 3 0.3 Advertisement 0.20 3 0.6 4 0.8 Positioning 0.15 2 0.3 4 0.6 Financial position 0.10 4 0.4 4 0.4 Customer loyalty 0.15 3 0.45 3 0.45 Market share 0.10 3 0.3 4 0.4
Total
1.00
3.05
3.75
2.85
In the CPM the industry average take as 3.50, so the Nestle performing is the best as compared to their competitors in juices. Haleeb lunched its juices two years ago but their performance is good and it is in second number in field of juices due to their pure and nectar juices with high quality and reasonable prices. Shahzan only deal in nectar juices and target the lower income group of people and it all sale is due to customer loyalty.
STRENTHS(S) Haleeb offer high quality products especially pure juices in market. Haleeb Foods is the largest National Food Company. Management team of Haleeb Company is very strong and educated. Haleeb foods have strong positioning in customer mind. Haleeb foods have best distribution channel in all over the Pakistan.
WEAKNESS(W) Packaging of juices product is not good, and not so much attractive. Haleeb company has very high prices in pure juices. Less promotional activities for its juice products. Less display centers use for juices products in main shops of different cities. Less product awareness in customer mind.
OPPERTUNITIES(O) There are a lot of untapped markets in different areas of Pakistan. The concentric diversification in different juices products. Backward integration can use in juice products It can become multinational and can target different market of different countries. Usage rate of juices is increasing
SO strategies.
WO strategies. Extensive campaign. (W1,O1) development marketing
Market development (S1,O1) Product (S4,O5)
THREATS(T) There is strong competition in food products market. Different strategies adopted by competitors Nestle in juices products New product advancement by different competitors. Government policy changes and fluctuation in tax rates on food items. Imported tin juices are great threat for good day.
ST strategies. Positioning as quality product consumer.(S1,T1) Acquiring the local among
WT strategies. Increase packaging promotional activities (W1,T1) budget on &
competitors(S5,T3)
Quantitative Strategic
Planning Matrix (QSPM)
Haleeb Food Company Factor analysis STRENGTH
U U
Weight Product development Market development AS TAS AS TAS

0.05 0.10 4 0.20 4 0.20
Largest National Food Company Strong brand loyalty Monopoly situation in pure juices Product positioning Strong distribution channel High quality products Strong management team
0.15 0.05 0.10 0.10 0.05 0.05 0.10 0.05 0.10 0.05 0.05
4 2 4 4 4 3 3
-
0.40 0.30 0.20 0.40 0.40 0.15 0.15

-
3 3 2 3 4 4 2
-
0.30 0.45 0.10 0.30 0.40 0.20 0.10

-
WEAKNESS
Product awareness in customer mind Not good packaging Higher prices in pure juices Low promotion activities Less display centers Late recovery of claims
2 4 3
-
0.10 0.40 0.15

-
2 4 2
-
0.10 0.40 0.10

-
OPPORTUNITIES
Untapped market Diversification in products Backward integration International markets
0.20 0.10 0.15 0.05
2
-
0.40
-
4
-
0.80
-
3 1
0.45 0.05
4 4
0.60 0.20
THREATS High market competition

Strong competitor Nestle in juices Products advancement Fluctuation in tax rates Imported juices Custom duties on plump
0.10 0.15 0.05 0.05 0.05 0.10
3 4 3 4 -
0.30 0.60 0.15 0.20 -
3 4 4 3 -
0.30 0.60 0.20 0.15 -
Total
5.5
According to this result Haleeb Food Company goes for Market development in different remote areas of Pakistan, because many markets in Pakistan are untapped if Haleeb target all these market it can increase its sales and can gain a lot of profits.
FINANCIAL HIGHLIGHTS (RS,000)

2005 Trading Results 2004
Sales-net Gross Profit Operating Profit Profit Before Tax Profit After Tax
7,086,175 1,090,860 544,711 486,114 345,697
5,941,780 870,368 417,773 380,673 232,888
Balance Sheet
Shareholders Funds Reserves Operating Fixed Assets Net Working Capital Current Assets
1,060,133 275,000 1,071,235 46,189 711,306
755,620 275,000 926,645 (59,748) 561,179
FINANCIAL ANALYSIS
2005 Sales Growth Gross Profit Margin Operating Profit Ratio Profit Before Tax Profit After Tax Pretax Profit Growth Net Profit Growth *Current Ratio Fixed Assets Tunover Return On Equity Return On Total Assets Times % % % % % % % % % 19.26 15.39 7.69 6.86 4.88 27.70 48.44 1.07 6.61 32.61 15.73 2004 26.57 14.65 7.03 6.41 3.92 23.00 21.35 0.90 6.41 30.82 14.03
* while calculating Net Working Capital and Current Ratio , Current portion of liabilities against assets subject to finance lease is not accounted for.
Product Life Cycle

GOOD DAY FUN DAY TROPICO
Sales
Introduction
Growth
Maturity
Decline
Time
BRAND POSITIONING MAP

Expensive
GOOD DAY GI
GII
Low Quality
GIII
High Quality
GII FUN DAY
TROPICO
Inexpensive
BCG MATRIX OF HALLEB

1.00 20 0.50 0.0
TROPICO
0.00
GOOD DAY
-20
FUN DAY
IE MATRIX OF HALEEB
TOTAL IFE WEIGHTED SCORES 4.0 High 3.0 to 4.0 HALEEB 3.0 TOTAL EFE WEIGHTED Medium SCORES 2.0 to 2.99 2.0 Low 1.0 to 1.99 1.0 Strong 3.0 to 4.0 3.0 Average 2.0 to 2.99 2.0 Weak 1.0 to 1.99 1.0
GRAND STRATEGY MATRIX OF HALEEB

Rapid Market Growth Quadrant 1 Quadrant 2 Market development Product development
Weak Competitive Position
Strong Competitive Position
Quadrant 3
Quadrant 4
Low Market Growth
SPACE MATRIX OF HALEEB

FINANCIAL STRENGTH
Working capital Cash flows Liquidity Risk involve in business Return on investment RATINGS 5.0 3.0 4.0 2.0 4.0 18 .0 RATINGS 3.0 5.0 5.0 3.0 5.0 21.0
Total
INDUSTRY STRENGTH
Financial stability Capacity utilization Resources utilization Ease of entry into market Growth potential
Total
ENVIRONMENTAL STABILITY
Rate of inflation Technological changes Demand variability Competitive pressure Barriers to entry into market Total
RATINGS
-3.0 -5.0 -5.0 -3.0 -5.0 -21.0 RATINS -2.0 -3.0 -1.0 -2.0 -1.0 -9.0
COMPETITIVE ADVANTAGE
Product life cycle Market share Product quality Technological know how Control over supplier & distributor Total
CONCLUSION
ES Average is = -14.0 / 5 = -2.8 FS Average is = 18.0 / 5 = 3.6 CA Average is= -9.0 /5 = -1.8 IS Average is = 21.0 / 5 = 4.2 Directional X-axis: 4.20 + (-1.8) = 2.4 Directional Y-axis : 3.6 + (-2.8) = 0.8
SPACE MATRIX
Conservative
FS
+6 +5 +4 +3 +2 +1
Aggressive Aggressive
(2.4, 0.8)
CA
-6 -5 -4 -3 -2 -1 -1 -2 -3 -4 -5 +1 +2 +3 +4 +5 +6
IS
Defensive
-6
Competitive ES
80
Buyers Perceptions of Value
Perceived Value
Superior Value Zone
Good day
Fun day Tropico Inferior Value Zone
Perceived Price
MARKET SIZE ESTIMATION
Product-Market Forecast Relationships

(area denotes sales in $s)
Market Potential Estimate
Unrealized Potential
Company Sales Forecast
Industry Sales Forecast
Product-Market Forecast Relationships for Industrial Painting Units

Sales (in 1000s of units) 900 800 700 600 500 400 300 200 100 0 2001 2002
Market Potential Sales Forecast
Company XYZ Sales Forecast
2003
2004
2005
2006
2007
2008
Sales Force Size

Sales
40
Current level
35
$m illions
Maximum profit contribution level
30
25
Gross profit contribution
20
Selling expense
15
10
60
70
80
90
100 110
Number of salespeople
Segment Attractiveness and Internal Compatibility

Internal Compatibility
High Low
High
Market Segment Attractiveness

Low
Attractive segments that match with company GOOD capabilities DAY
Attractive segments but with poor match with company capabilities
Unattractive segments Unattractive segments but with match to that do not match with company TROPICO company capabilities capabilitiesFUN DAY
Segment Financial and Market Attractiveness

Segment
Estimated (Rs million)

Sales1 Variable costs
2
GOOD DAY
2 5 3 18 2%
TROPICO
5 8 10 22 5%
FUNDAY
3 6 7 11 1%
Contribution margin Market share

3
Total segment sales
Segment position :
Business strength Attractiveness High Medium Medium Medium Low Medium
1. For a 2 year period. 2. Percent of total sales in the segme.. 3. Based upon a five-year projection.
BUSINES LIFE CYCLE
S le a s
Introduction
Growth
Maturity
Decline
Time
Porters five Model

1) Threats of new entrants: There are following barriers of entry for new entrant foe juices in market. Accesses to distribution channels are vary high form all companies exist in market. High capital requirement for new company to enter in market due to high competition Product differentiation is good feature from all companies which is also a barrier for new comers. 2) Bargaining Power of supplier: Suppliers of the raw material of juices specially of Plump of fruits are powerful in following points: They are dominated because they are few numbers. Their product is very important input of Haleeb juices.
Supplier product has high switching cost for Haleeb Food Company. Supplier of Haleeb juices plump has no substitude
3) Bargaining Power of buyer: There are in following point Haleeb food company is strong Haleeb present the threat to supplier of backward integration. Haleeb food purchase plump of different juices from different companies so Haleeb purchases are more as compare to one supplier. 4)Threats of substitude products: There is only one threat for juices of Haleeb in substitude products that is cold drinks in form of Pepsi and coca cola
Framework for Market Sensing of HALEEB juices

GOOD DAY Probability of the Event Occurring
High 7 6 Medium Low Field of Dreams Things to watch Future Risks
Utopia
Effect of the Event on the Company*
5 4 3 2 1 Danger
1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal
Impacts of Changes in Business Strategy Restructuring on Targeting and Positioning Strategies on HALEEB Juices
Changes in Business Strategy Rapid Growth/ Retrenchment Market Targeting Impact
Market scope may not change although targets may be increased or reduced.
Positioning Impact Substantial changes in resource allocation, (e.g. advertising expenditures

Changes in product strategy, methods of distribution, and promotional strategies may be necessary. Positioning strategy must be developed for each new target. Product, distribution, price, and promotion strategies may be affected. Primary impact on channel, pricing and promotion strategies.
Changing the Product Mix No change is necessary unless
increase in product scope creates opportunities in new segments. Targeting is likely to change to include new targets. Should not have a major effect on targeting strategy. Should have no effect on targeting strategy.
Changing the Market Scope Repositioning Value Chain Integration Diversification Strategic Alliance
Targeting strategies must be selected in Positioning strategies must be developed new business areas. (or acquired for the new business areas. Targeting strategy may be affected based on the nature and scope of the alliance. Operating relationships and assignment or responsibilities must be established.
Market Targeting Alternatives

Segments Clearly Defined
Target Selected Niche

Selective Targeting
Target Multiple Segments

Extensive Targeting
Product Specialization
Product Variety
Differentiated But Segments Not Clearly Defined
Trade Budget For 2006 (RS,000)

Product Name
Good day pure juices
sales Trade % age
JUL- DEC 35,908 1,400 3.90%
JAN - JUN 54,214 1,600 2.95%
JUL- JUN 90,122 3,000 3.33%
Product Name
Funday
sales Trade % age
JUL- DEC 5,203 300 5.77%
JAN - JUN 9,455 500 5.29%
JUL- JUN 14,658 800 5.46%
Product Name
Tropico
sales Trade % age
JUL- DEC 52,792 5,700 10.80%
JAN - JUN 61,975 6,510 10.50%
JUL- JUN 114,767 12,210 10.64%
PROMOTIONAL BUDGET
Product Name Good Day Tropico Fun Day TV.Advertisment Trade incentive 20 million 5 million 0 8 million 0 2 million BTL(holdings) 5 million 3 million 1 million Promotions 6 million 8 million 2 million
SALES FORECASTING Total population of Pakistan Target people having age People having age above 5 People who like other juices and drinks People who willing to drink Haleeb juices Price range Average price Avg Quantity Sales = 162419946 5-above = 90 % of 162419946 = 146177951.4 = 75 % of 162419946 = 109633463.6 = 36544489 = 10 + 25 + 65 = Rs.33 =2 = 33 * 2 * 36544489 = Rs.2411936274
PROJECTED INCOME STATEMENT Rs = 2411936274 = 2098360250 = 313576024 = (34691250) = (81477000) = 197407774 = 2591400 = 199999174
Sales Cost of goods sold Gross profit Administration Expenses Distribution cost Operating profit Other income Profit before interest and taxes
Tax Net profit
= 49145950 = 150853224
From all the above data we find out that there is a lot of demand for Haleeb juices but they are spending low as per requirement . As far as promotional activities are concerned they have introduced many product as concentric and conglomerate diversification but when we talk about Haleeb to a common person he knows that they are offereing just milk at market place , he does not know that they have introduced other products like juices , ghee, rita , powder milk etc. So in order to remain competitive at market place they have to focus extensive marketing campaigns so that they can capture potential customer. In order to attain and retain the existing customer they have to offer discounts , occasional offers etc.
Activities to be implemented
How implementatio n
Responsibility for implementatio
Time and location of implementation
A. ACTIVITIES TO BE IMPLEMENTED Sales representatives target all the untapped markets and niches, by using current products. Revenue objectivity should be given high attention , and it should increase by 45% every year (for the next 3 years.)
Product line should be extended by adding new flavors of juices. Related and unrelated diversification in the form of eatables , made up of fruit extracts and food pulp. Role of R&D should be increased to help a) target markets most effectively b) to get knowledge about consumers table and preferences. More budget and resources should be allocated to advertisement and sales promotion. B. HOW IMPLEMENTATION TO BE DONE Develop desirable skills in the employees who are assigned the basics of target implemented these skills may include. The ability of sales force, personnel in finance department ,expert in R&D etc , should first understand , the nature of the tasks or tasks importance fot the company. To increase the ability to put right people on right jobs .i.e the person of finance dept. should not be given the tasks of R&D , which is highly sensitive and innovational field. C. RESPONSIBILITIES FOR IMPLEMENTATION Create the effectiveness of the personnel to focus on critical aspects of their job. Other remedies to enhance implementation includes 1. Organizational Design Organizational design should consist of multifunctional teams, including at least 1 member of each department to solve the problem or to achieve the targets. 2. Incentives Various rewards may help achieve successful implementation. For Example in case of Haleeb juices, bonuses or commission should be given to members of sales force/personal selling teams who sales more units of juice packets. 3. Communication
Rapid and accurate movement of information should be confirmed .To do so efficient and effective feed back systems should be introduced. For example in case of Haleeb the smooth flow of information should be confirmed from a single member of sales force / distributors up to the brand manager and vice versa.
D. TIME AND LOCATION OF IMPLEMENTATION Proper time period should be given for the start and end of the task and each personnel related to that specific job should be given complete information about the geographic area of his/her sales and the volume to be sold in case o personal selling and sale promotion.(the balanced score board technique may be adopted)
For evaluation and control HALEEB conducts a comprehensive audit of all the depts. By comparing the current results to that of company objectives
.They get comprehensive information from all the departments carefully and its analysis is conducted with great care . The results are analyzed with great emphasis on the companys behalf. If there appears any deficit then revise their strategies implement them and then get the results and if there are no loopholes found they continue to implement that strategy for the specified period of time. This evaluation conduct twice a year. In the step wise process we can summarize
15-17
Strategic Marketing Evaluation and Control

Conduct strategic marketing audit
Select performance criteria, measures, and metrics
Obtain and analyze information
Assess performance and take necessary action
APPENDIX 1: WORKSHEET FOR DEVELOPING MARKETING OBJECTIVES AND HIGHERLEVEL MARKETING STRATEGIES:
STRATEGIC GAP ANALYSIS:
AT END OF PLANNING PERIODS
Year 1 Corporate revenue objectives Projected revenue from current strategies: Revenue Gap: 3002014$ Year 2 Year 3
3062054$ 3123295$
85594$ 2916420$
87306$ 2974748$
89052$ 3034243$
COMPETITIVE POSITION PRODUCT LIFE CYCLE:
MARKETING OBJECTIVES
Products have reached the growth stage.
As Haleeb products have reached the growth stage it has to work even harder to maintain its present position in the market. They must focus on customers demands that: o o What actually customers want? How customers would be satisfied?
Maturity stage
Haleeb is now thrilling towards the maturity stage and when it would reach at the maturity stage there is a need to become more customer centered and move towards innovations so that it dont plunge in the decline
category.
BUSINESS LIFE CYCLE:

GROWTH Haleeb Foods is presently on the growth in the business life cycle. Now it should focus on the more customer centred approach and should introduce more innovative and upto-date products so that it could retain more and more customers. Haleebs retail division is on star and it needs more investment to maintain the present position in the market.
SUMMARY OF CURRENT COMPETITIVE POSITION:

DESCRIBE OUR CURRENT COMPETITIVE POSITION
Haleeb competitive position is quite superior to other competitors. haleeb is having the major threat of local brands because they are prospering day by day in the market is the major competitor in the market for Bata because they took advantage from Haleebs strategies rather than using their own strategies. The relative market share of Haleeb is 18.3%, MAZA is4.17%, Shezan 12.5% and the local competitors are having relatively larger share than the other competitors which is 50%.
60% 50% 40% 30% 20% 10% 0%
59% 40%
50%
12.50% 18.30% 4.17%
WHAT SHOULD OUR COMPETITIVE POSITION BE IN 3 YEARS TIME?

In the next three years Haleeb competitive position should be stronger, company seems to
have more quality features and better products. There will be more improvement in current products but company is also willing to enter in some new projects. They should go for more
innovations and fashionable products must be introduced in ladies.They must increase their relative market share with aggressive sales and promotion. More advertising campaigns should be made to augment it in the coming three years.
WHAT ARE THE STRATEGIC IMPLICATIONS IN TERMS OF OUR EXISTING AND POTENTIAL NEW PRODUCTS AND MARKETS? THAT IS, HOW WILL WE GROW THE BUSINESS?
o Haleeb should introduce more innovative products in the market to increase its demand. Those innovations must be according to the customers demands and their preferences. o Whenever Bata open its new distribution centre Servis take advantage from its strategies and open a store in front of their store, Haleeb should take steps to overcome this threat. o Bata should gain the sustainable competitive advantage. o Most of Batas wholesales were in the northern areas, when earth quake came it suddenly fall down. Bata should wind up wholesale from northern areas and should shift it towards the cities of Rawalpindi, Lahore and Hyderabad because more footwear units are located in these cities.
ESTIMATED REVENUE FROM EXISTING PRODUCTS IN EXISTING MARKETS (MARKET PENETRATION)

Market size (Value): Current size: Market projections $ 16 million Year 1 $ 18000000 Year 2 $21000000 Year 3 $23000000
Current market share: Projected market share (Via new strategies) Year 1 65% Estimated value of existing Products in existing markets: (Market projection x Market share) Year 2 69% Year 3 73%
Year 1
Year 2
Year 3
150100.7$
153102.7$
156164.75$
ESTIMATED POTENTIAL REVENUE FROM EXISTING PRODUCTS IN NEW MARKETS (MARKET DEVELOPMENT)*
Year 1 2311550$ Year 2 2357782$ Year 3 23194937$
ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS IN EXISTING MARKETS (NEW PRODUCT DEVELOPMENT)*
Year 1 480322$ Year 2 489929$ Year 3 499727$
ESTIMATED POTENTIAL REVENUE FROM NEW PRODUCTS IN NEW MARKET SEGMENTS (RELATED DIVERSIFICATION)*
Year 1 60040$ Year 2 61241$ Year 3 62466$

Strategic Marketing Haleeb Foods

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Strategic Marketing Haleeb Foods

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Strategic Marketing Plan

Prepared by: HORIZON Date: 2nd October, 2006

HACCP (in process controls for safer products)

Product Category III

Competitors and their products competing in these product categories:

Females in emphasis, while males also are considered

Family-size Life-cycle stage

People having income Rs. 30,000-35,000 are included in this segment.

Family-size Life-cycle stage Geographic location

Category III Income:

2. Geographic location: 3. Use situation/occasion:

At each product category level Product category: I

Product Category III

Competitors and their products competing in these product categories:

External environment remote environment

Personal Saving Rate:

Disposable & Discretionary Income:

Disposable & Discretionary Income of HALEEB is 95%.

Business Saving Rate:

Business Saving Rate of HALEEB is 10%.

Energy Availability & Cost:

Energy is easily available and cost on energy for HALEEB Rs.50m.

Budget Deficit OR Surplus:

Overall HALEEB FOODS business cycle:

BUSINES LIFE CYCLE

New rivals Strong competition Increasing rate of inflation.

Women in the workforce:

Work life quality:

Concerns about environment:

Political or legal forces

Labour is being privileged here having all the laws.

Laws on hiring & promotions

Environmental protection Laws

Foreign trade Regulations

Attitudes towards foreign companies

No restriction imposed by government

Productivity improvement through automation

Total spending on R&D

New communication technology

Technological advancement in HALEEBs operations as for as local operation are concerned

Natural environment forces

External Environment Near Environment

Threats Competition with NESTLE New entrant Diversification of

existing companies Imported tin juices are great threat for 4

Key Competitors 1. Nestle 2. Maza 3. Shezan 4. Country 5. Nurpur 6. Malee

Distribution channels and buyers (intermediary customers)

FOODS Have distribution channels in all over the Pakistan

Threats Strong distribution channel of competitor can attract the present

Competitor can hire the distributor on better terms. 5

Distributor can demand more commission.

Threats End user can shift to Nestle or other competitor.

Competitor can use market

culture Economic development in Pakistan Least competitors in purity

penetration strategies to attain its end 4

Threats Supplier can refuse to provide raw material to

Custom duty on imported products can 3

high Government may ban the raw material

Critical success factors (CSFs)

Untapped market Demand of juices o Concentric diversification

Low Switching Cost Fluctuations in tax rate

Situation analysis Internal capabilities

Marketing capabilities Management