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.

Introduction of HFL:
HFL is now one of the fastest growing packaged food companies in
Pakistan with an annual turnover of Rs. 9.2 Billion (F2006). It is a
private limited company. It started commercial production in July
1987. Due to consistently superior performance, it has achieved
undisputed leadership in the liquid packaged milk category with a
market share of over 52%. HFL has a very strong brand portfolio
consisting of dairy as well as non-dairy products.
Haleeb Foods has segmented its product portfolio in 3 leading brands
including Haleeb, Candia and Tropico. Haleeb is the flagship brand of
the company. Haleeb UHT Milk is available in 5 Skus of Tetrapak

packaging. Due to its strong positioning of the thickest milk for best
tea, it has the highest top of mind awareness and penetration in the
dairy industry of Pakistan. In order to increase consumer and trade
penetration of the brand, it is also available in Tetra Fino Packaging
under the brand extension of Haleeb Dairy Queen.
Haleeb has also progressively diversified from UHT Milk to other
product categories as well. These product line extensions include
Haleeb Butter, Haleeb Yogurt, Haleeb Cream, Haleeb Labban
(Drinking Yogurt), Haleeb Asli Desi ghee (Butter Oil), Haleeb Funday
Juice Drink, Haleeb Skimz (skimmed milk), Haleeb N'Rish Full Cream
Milk Powder & Haleeb Good day Pure Juices. Haleeb Good day is the
only range of 100% pure juices in the country with a variety of 6 pure
juice flavors.
Haleeb Foods, having a Franchise agreement with Cadillac France,
launched Candia Double Sterilized Milk in bottle format in April
1999. Candia is also available in the Candia Classic variant which is
positioned for Tea. Another recent initiative is Candia Candy Up,
which is flavored milk for children.
HFL has one of the largest nation-wide distribution networks
delivering high quality products, even in the remote areas of
Pakistan. With a network of +1100 distributors the company ensures
that the product range is available in all the urban and semi urban
areas of Pakistan. Furthermore, concerted efforts are being made to
develop the rural market as well.
HFL has an efficient and resourceful Export department, which has
successfully tapped opportunities in foreign markets including
Korea, Hong Kong, USA, UK, China, Afghanistan, Bangladesh and
the Middle East.
In order to provide best quality products to its consumers, HFL has a
well-developed supply chain infrastructure. It has heavily invested in
a vast network of company operated milk collection centers across

the country. HFL has a strict and stringent quality policy regarding
intake of raw milk. It is the only company that conducts 21 rigorous
quality tests to ensure that only fresh milk of the highest quality is
accepted at the plant premises. These internationally recognized
tests are used to check for: a) adulteration, b) microbiological
contamination and c) adequacy of nutritional contents. Further,
Haleeb Foods is the only food company in Pakistan that has the
following international certifications of quality and prestige:
HACCP

(in process controls for safer products)

ISO

9001 2000 (better quality for greater customer satisfaction)

ISO

14001 (environment-friendly operations)

HFL believes in using cutting edge processing and packaging
technologies to meet consumer expectations of hygienic and high
quality food products. It has more than 30 Tetra machines for its
UHT milk brands and 5 UHT units with a capacity of producing
more than 1 Million Liters of Milk everyday. Keeping in view the
volume potential and increasing growth trend of the market, the
company has recently inaugurated a second independent UHT plant
at Rahim Yar Khan.
Haleeb Foods has a highly professional management team with a
progressive operating style. The management team comprises of
highly seasoned professionals with diverse global experience of
managing and developing brands. It can lay claim to be one of the
very few Pakistani organizations, which are truly following the model
adopted by globally successfully corporations, with clearly defined
roles for shareholders and the management team.
The company takes pride in being a model national organization
delivering international quality products and higher value for money
to its consumers. The management team at HFL strongly believes
that Pakistan offers enormous potential for food business due to a

large consumer base, high acceptance of packaged food, and a

growing urban middle class consumer segment.

History:

Haleeb Foods Ltd. was incorporated on July 1st, 1984 with a

capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was renamed as
CDL Foods Limited and now it is known to be as Haleeb Foods Limited. At that time it had
the capacity of producing 80,000 / liters of milk per day having total area of 32 acres. Initially

150 people were employed at the plant. The production process started with UHT liquid milk.
The liquid milk was the first product launched in the market, it started its operation in 1985 at
that time 20 other dairy plants were also coming in, and all those including MILKPAK were
using obsolete technology that was used in EUROPE. Haleeb Plant was the only plant based
on the latest technology and the basic idea behind that were particularly dairy foods products.
Haleeb is one brand that is toady known everywhere.
From November 1989 till December 1991 Haleeb had a joint venture with fries land Frico
Domo of Netherlands. This joint was amicably dissolved on account of FFD's change in
management in their global strategy. Today as an ISO 9002 certified company, Haleeb is the
dominant market leader of UHT milk in Pakistan by capturing 52 % share.
Franchise agreement with Canada, a market leader in the liquid milk market in France,
was assigned in December 1998. Under this arrangement, the company launched Candia
range of value added liquid milk product and also have assess to latest production,

technical and marketing know how. Initially company launched different

products but some of them could not become successful. As the company's core
concern is quality eventually company abandoned products that were not
according to the market needs. In 2002 the company contributed 54% to the
country's packed milk market.

Haleeb Foods was established in 1986 as a private limited company and its
first product was Haleeb milk. Since then, it has continued to provide quality
products to its consumers with product and packaging innovations. Other
products and their dates of launch are as follows

Year of Launch of the Products:

1997

Haleeb Asli Desi Ghee

1998

Haleeb Cream, Candia Skimz Milk Powder

1999

Candia Milk, Candia Skimz Liquid Milk

2000

Tropico Juice Drink, Haleeb Dairy Queen

2001

Haleeb N'rish Instant Full Cream Milk Powder

2002

Haleeb N'rish Fortified Instant Full Cream Milk

Powder

2003

Candia Tea Max Dairy Whitener, Haleeb Butter,

Haleeb Plain Yogurt, Haleeb Lassi Drink

2004

Haleeb Good Day Pure Juice, Haleeb Fun Day Juice

Drink, Candia Candy'Up Flavoured Milk

Haleeb Cream With Honey, Haleeb Tea Max with

2005 Cardamom, Haleeb Labban, Haleeb Good Day(Mix
Fruit, Red Grapes, Mango Pineapple)
2006
2007

Haleeb Reshmi Pack, Candia Classic, Skimz Pouch,

Tropico Nectar
Haleeb Cheddar Cheese

Information about Haleeb Foods

Legal Representative/Business Owner:

Mr. Suleman Daud

Board of Directors:

Mr. Ilyas Chaudhry

Mr.Israr Ahmed

Mian Zahid Saeed

Mian Muhammad Amjad

Sheikh Muhammad Rasheed

Major General (Retd.) Shafiq Ahmad

Mrs.Nasreen Ilyas

Mrs. Zarina Saeed

Mr. Muhammad Ishtiaq Khan

Chairman:
Mr. Ilyas Chaudhry

Managing Director:
Mr. Israr Ahmed

Auditors:
Hameed Chaudhry and company

(Chaudhry Accountants)

Legal Advisor:
Hassan and Hassan Advocates

Marketing Research:
Aftab Associates

Advertising Agency:
Paragon Evernew Concepts

Trade & Market:

Main Markets:

Pakistan, North America, South America,

Western Europe, Eastern Europe, Eastern
Asia, Southeast Asia, Mid East, Africa,
Oceania

Work Force:
It has a team of 3000 exceptional individuals to support its
operations, out of which
900 are permanent employees

10

 600 are on contract and

1500 are of 3rd party

Market Share:

Haleeb foods is Serving 70% of the nation of Pakistan.

Area:
The total premises area of Haleeb foods Rahim Yar Khan Factory is
about 72 acres. Plant & offices are situated at 20 acres. The remaining
52 acres are vacant and for expentation purpose.

Distribution Channels:
Haleeb foods is not directly selling the products. It has
distribution channels. Firstly Haleeb foods supply their products to
their distribution channels and then products delivered to the
customers.
Position of Haleeb foods:

11

Haleeb foods, the largest dairy company in Pakistan. The

company also operates as a franchise of Candia Cedilac of France.

12

Competitors:
Haleeb foods competitors are:
Nestle
Good Milk
Olpers
Shehzan

Location of Offices & Factory:

Head Office:
135 ferozpur road Lahore 5460 Pakistan
Phone +92 42 111 135 135
Fax +92 42 759 0376

Regional Offices:
Lahore,
Rawalpindi,
Karachi,
Peshawar,
Quetta,
Rahim Yar Khan, Dubai.

13

Location of Factory:
There are two plants of Haleeb foods
i. 62-km Multan road Lahore, Near Bhai Pheru
ii. 22-km kLP road R.Y.Khan

International Certification:
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)

Haleebs Policy:
Build branded food business to improve quality of life by offering
tasty, sage, hygienically processed, and affordable, highly nutritional
food products through environment friendly processes to our
customers while maximizing stake holders' value.
Meet the requirement of all relevant legislation and regulation
related to consumer satisfaction & safety, environment and other
applicable laws etc
To prevent pollution through controlling levels of harmful emission,
effluents and other wastes.

14

 Contribute to safe and healthy environment for our country.

Promote mutual trust with customers, suppliers, employees,
shareholders and community.
Provide all the necessary resources for the continual improvement
in quality, safety of our products, processes and environment.

15

Organ gram of Human Resource Department

Head of Dept.
hj
(Asif Habib)

GM Finance

sheikh Shah

HR Manager
(Main umer Saleem Baber)

AM ER Personnal

Assistant Manager

AM ER Personnal

HRD Manager

Rahim Yar Khan

(Ali Wahab)

Head Office
(Tanzeela Rafique)

Bhai Pheru
(Alam Zaman Khan)

(Omer Hassan Janjua)

16

BRAND PORTFOLIO OF HALEEB FOODS LTD

A Haleeb food is a customer oriented organization so it is

manufacturing the products for every kind of consumers. Haleeb foods
have a very rich brand portfolio with national and international brands.
In order to provide their customers the wide range of products Haleeb
Foods Ltd. is using every kind of management strategies like it was
having a merger and franchise with two foreign companies.
One of the core competencies of Haleeb foods is their variety of
products that they are using branding strategies in order to compete
with rivals of dairy products, multi branding, brand extension and line
extension. The wide range of products of Haleeb foods is the major
contribution towards the success of the company.

17

Haleeb UHT Milk

Good Day Fruit Juice

Tropico Juice Drinks

18

Dairy Queen UHT milk

19

Haleeb Gold milk

Skimz Milk

20

Manufacturing process at Haleeb Foods

Haleeb milk is not actually made but it is processed milk. We
collect raw milk from approved dairy farms and process it ensuring the
highest standards. Some people think that perhaps Haleeb milk is
made from chemicals or synthetically but this is not true.
Following steps are including in the process of Haleeb Milk.
1. Collection of raw milk
2. Testing milk at the plant reception
3. Pasteurization
4. Standardization
5. Homogenization
6. Sterilization
7. Ultra Heat Treatment (UHT)
8. Packing

21

22

23

24

25

PROPOSED VISION STATEMENT

It is our vision to be the best and leading provider of food

products in Pakistan and among the top ten food companies
in the world, by continually challenging present conventions
and always staying a step ahead of the competition.

PROPOSED MISSION STATEMENT

It is our mission to be the number one food company in
Pakistan by providing our customers with the highest
product quality in terms of taste, experience, and
satisfaction. We will ensure this through an unwavering
dedication to the continuous development of our products
and processes ensuring that we remain best in class. We will
strive to hire the most competent and dedicated employees
whose work ethic will set the standard in the industry. We
will be paymasters, as we strongly believe that human
resource is the only asset that truly appreciates over time.
We will also be a responsible social corporate citizen, and
strive to enhance the quality of life in the markets we serve.

26

External environment remote

environment
Economic forces
Scenario
UInflation & Interest Rate:

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:

27

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%.

28

Overall HALEEB FOODS business cycle:

BUSINES LIFE CYCLE

29

Implications
Opportunitie
High market size
Low tax rate
Economic development

Rati
Threats
5
New rivals
2
Strong competition
3
Increasing rate of

Rati
5
3
4

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.
P

30

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 very 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.

31

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

32

Pest Analysis:
POLITICAL CONDITIONS: The political conditions are not very stable in the
country, but this does not directly influence the trends and spending patterns of the customers.
There are no restrictions or barriers on the growth of this industry. So the political conditions
are favorable fir this market because food and dairy chain products are consumer goods and
they have to purchase it in any condition.
ECONOMICAL CONDITIONS:

The economical conditions are not very favorable and the economy is facing problems, but
it is nit directly influencing buying power of consumers. If the country is out of its current
problems, it will further boost up growth of this industry, as people will feel more secure
economically and it will further increase the attractiveness of the market.
SOCIAL CONDITIONS:

The social patterns are changing in the country, as the world is becoming a global village, and
mutually share and accept patterns. People are becoming more attractive towards the branded
products. It is becoming fashion and young generations as well as the children are getting more
attracted towards this industry. People are moving towards branded food / dairy products due to
hygienic reason.

TECHNOLOGICAL CONDITIONS:

High technology is the basic requirement of dairy and food industry. The companies that
are using latest technology have some cost benefits over the companies, which are not
using high technology. The key to survival for companies in this industry is using high
technology for quality and cost purposes.

33

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.

No 1 dairy company

Efficient Distribution networks through out the country

Haleeb Food's products enjoy strong brand image and market pull.

Innovative and constantly growing product line.

Sales force is the major resource strength in terms of physical resources of the
company.

34

Marketing strategies established by the company are innovative and lure customers.

Financial, marketing and sales strategies are formulated by gauging the customer
demands.

Periodic research carried out to judge market trends.

Highly sophisticated plant and equipment.

Qualified work force.

Focus on research and development.

First and the only dairy company in Pakistan to get ISO 9002 certification.

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.

Relatively a small and local company in comparison to its rivals.

Dependence on 3rd party for supply of milk.

35

No credit sales.

Low sales margins due to highly value added products.

They cannot launch many of its expensive international brands due to the lower
income groups.

Selective investment due to uncertain economic and political conditions.

Feasibility of new products needs to be analyzed, e.g. Candia Drinking Yogurt was
launched some years back but it failed because no customer demand exist it.

The packing line installed for N'Rish has a higher capacity than the actual demand
of the product, resulting in higher overhead costs for the product.

Inadequate marketing.

Low promotional activities.

Comparatively weak distribution system.

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.

36

Pakistan is the seventh largest producer of milk in the world with annual output of over 22
billion liters.

There are substantial growth opportunities considering the average yield of Pakistani
animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in
Europe and USA. There are nearly 20 million milk producing animals in the country,
mostly in Punjab (80%).

The overall milk market in Pakistan is 20 billion liters, out of which processed milk
contributes only 3 million liters. Haleeb Foods along with other processed milk
business contribute only 2% to this large market.

Haleeb Foods' has expanded its product range by launching milk in Tetra Fino
Packaging.

Credit policy can be adopted to increase sales.

HFL can export to others countries.

CDL has been changed to HFL, so this change in name can help them to attract foreign
customers.

HFL can go for related diversifications by producing pure juices and flavored yogurt.

HFL can go for joint venture with other companies to attract the market share.

Entering in to the market of baby cereals, which will help them in increasing their
revenue.

37

Launching cheese would also beneficial for them to create the brand awareness.

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.

Competition with Nestle, Engro Foods.

Effect of Seasonal ties upon sales.

Dependency on contractors for supply of milk.

Price fluctuations due to rupee devaluation as raw material are imported.

The uncertainty of economic conditions poses a great threat.

The present economic crisis in the world, led to the withdrawal of foreign
management from the company and the investment has come to a halt.

Price sensitive people.

38

Milk man (Gawalas) providing non branded milk in homes.

39

Summary of Opportunities:
Significance of
opportunity High
Low

High Untapped
market
Probabili
ty Of
Occurre
nce

o Concentric
diversification

Backward
integration

o To become
multinational

40

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.

41

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

High

Strong market

Probabili
ty Of
Occurre
nce

Competition

Imported Tin
juices

Low Switching
Cost

Custom duties on
import of plump

40

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,
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.

43

Situation analysis Internal capabilities

Non marketing capabilities
(Financial position, management and leadership, HRM, R&D,
operations-production 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

Rating
4
3
3
5

Weakness
HRM
Competitive
position

3
Management
Production
capability

44

Rating
3
2

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.
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.

45

IMPLICATIONS
Strengths
Market intelligence
Market organization
Organization
Market
planning
positioning

Rating
4
3
3
4

Weakness
Market control
Promotional
process
campaigns

Rating
3
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.

46

Internal factors evaluation (IFE)

Haleeb Foods
Company
Internal Factors

Weight Rating

Weighted
Score

STRENGTHS
Largest National food
Strong brand loyalty
Monopoly situation in pure
Product positioning
Strong distribution channel
High quality products
Strong management team
WEAKNESS

Product awareness in
Not good packaging
Higher prices in pure juices
Low promotion activities
Less display centers
Late recovery of claims
Total weighted Score

0.05
0.10
0.15
0.05
0.10
0.10
0.05

4
4
3
2
4
3
3

0.2
0.4
0.45
0.1
0.4
0.3
0.15

0.05

0.15

0.10
0.05
0.10
0.05
0.05

2
3
4
3
2

0.2
0.15
0.4
0.15
0.1

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

47

External factors evaluation (EFE)

Haleeb Foods Company

Weight

External Factors

Rating

Weighted
Score

OPPORTUNITIES
Untapped market
Diversification in products
Backward integration
International markets
THREATS

0.20
0.10
0.15
0.05
0.10

4
3
3
2
3

0.8
0.3
0.45
0.1
0.3

Strong competitor Nestle in

Products advancement
Fluctuation in tax rates
Imported juices
Custom duties on plump

0.15
0.05
0.05
0.05
0.10

4
3
2
2
2

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.

48

CPM (Competitive profile matrix)

Haleeb
Critical
Weight RatingScore
Success
Factor
Product quality 0.20
3
0.6
Prices
0.10
4
0.4
Advertisement 0.20
3
0.6
Positioning
0.15
2
0.3
Financial
0.10
4
0.4
Customer
0.15
3 0.45
position
Market share
0.10
3
0.3
Total

1.00

3.05

Nestle

Shahzan

Rating Score
4
3
4
4
4
3
4

0.8
0.3
0.8
0.6
0.4
0.45
0.4
3.75

Rating Score
2
3
3
3
2
4
3

0.4
0.3
0.6
0.45
0.2
0.6
0.3
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.

48

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.

48

SOWT MATRIX OF HALEEB FOOD

47

STRENTHS(S)

48

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

Market
development
(S1,O1)

Product
development (S4,O5)

increasing

SO strategies.

WO strategies.

Extensive
marketing
campaign.

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.

ST strategies.

Positioning as quality
product

WT strategies.

among

Increase budget on
packaging

&

consumer.(S1,T1)

promotional activities

Acquiring the local

(W1,T1)

competitors(S5,T3)

Quantitative Strategic
Planning Matrix
(QSPM)
Haleeb Food Company

Weight

Factor analysis
USTRENGTHU

Largest National Food

Strong brand loyalty
Monopoly situation in
juices

Strong distribution
High quality products
Strong management
WEAKNESS
team
mind
Higher prices in pure
Low promotion
Less display centers
Late recovery of
claims
OPPORTUNITIES

0.05
0.10
0.15
0.05

4
4
2
4

0.20
0.40
0.30
0.20

0.10
0.10
0.05

4
4
3

0.40
0.40
0.15

0.05

0.15

4
3
3
2

0.20
0.30
0.45
0.10

3
4
4

0.30
0.40
0.20

0.10

0.10

0.05
0.10
0.05
0.05

2
4
3
-

0.10
0.40
0.15
-

2
4
2
-

0.10
0.40
0.10
-

0.20

0.40

0.80

3
1

0.45
0.05

4
4

0.30

0.30

0.60

0.60

3
4
-

0.15
0.20
-

4
3
-

0.20
0.15
-

Untapped market
Diversification in
0.10
Backward integration 0.15
International markets 0.05
THREATS
0.10
High market
Strong competitor
0.15
Nestle in
Products
0.05
Fluctuation in tax
0.05
Imported juices
0.05
Custom duties on
0.10
plump
Total

ProductMarket
AS development
TAS development
AS
TAS

0.60
0.20

5.5

49

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.

57

58

59

60

61

62

63

64

FINANCIAL HIGHLIGHTS (RS,000)

2007

2008

7,086,175

5,941,780

Trading Results
Sales-net
Gross Profit
Operating Profit
Profit Before Tax
Profit After Tax

1,090,860
544,711
486,114
345,697

870,368
417,773
380,673
232,888

Shareholders Funds

1,060,133

755,620

Reserves
Operating Fixed Assets
Net Working Capital
Current Assets

275,000
1,071,235
46,189
711,306

275,000
926,645
(59,748)
561,179

Balance Sheet

65

FINANCIAL ANALYSIS

Sales Growth

200
7
19.26

Gross Profit Margin

15.39

Operating Profit Ratio

7.69

Profit Before Tax

6.86

Profit After Tax

4.88

Pretax Profit Growth

27.70

Net Profit Growth

48.44

Times

6.61

3.9
2
23.
00
21.3
5
0.9
0
6.41

%
%

32.6
1
15.7
3

30.
82
14.
03

*Current Ratio
Fixed Assets Tunover
Return On Equity
Return On Total Assets

200
26.
8
57
14.6
5
7.0
3
6.41

1.07

* while calculating Net Working Capital and Current Ratio , Current

portion of liabilities against assets subject to finance lease is not
accounted for.

66

Segment Financial and Market

Attractiveness
Estimated
(Rs million)
Sales 1
Variable costs 2

GOOD DAY
2
5

TROPICO FUNDAY
5
3
8

Contribution margin 3

10

Market share3

18

22

11

Total segment sales 2%

5%

1%

67

Segmentposition:
Business strength High

Medium

Low

Attractiveness

Medium

Mediu
m

Medium

68

SALES FORECASTING
= 162419946
Total population of Pakistan
Target people having age
5-above
People having age above 5
= 90 % of 162419946
= 146177951.4
People who like other juices = 75 % of 162419946
= 109633463.6
People who willing to drink
Haleeb juices
Price range
Average price
Avg Quantity
Sales

= 36544489
= 10 + 25 + 65
= Rs.33
=2
= 33 * 2 * 36544489
= Rs.2411936274

PROJECTED INCOME STATEMENT

Rs
Sales
= 2411936274
Cost of goods sold
= 2098360250
Gross profit
= 313576024
Administration Expenses = (34691250)
Distribution cost
= (81477000)
Operating profit
= 197407774
Other income
= 2591400
Profit before interest

64

and taxes
Tax
Net profit

= 199999174
= 49145950
= 1508532
24

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.

64

64

64

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.

64

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

64

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)

64

64

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

64

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.

Strategic Marketing Evaluatio

and Control
Conduct strategic marketing audit

Select performance
criteria, measures, and
metrics

Obtain and

64

analyze
information

Assess
p er fo r m and take necessary a c t i o n

64

64

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%.

WHAT SHOULD 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

64

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.

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.

Bata should gain the sustainable competitive

advantage.

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.

64

ESTIMATED REVENUE FROM EXISTING

PRODUCTS IN EXISTING MARKETS
(MARKET PENETRATION)

Market size (Value):

Current size:
Market projections

$ 16 million
Year 1

Year 2

Year 3

$ 18000000 $21000000 $23000

000
Current market
share:
Projected market share
(Via new strategies)

Year 1

Year 2

65%

69%

Estimated value of
existing
Products in existing
markets:

Year 1

Year 2

150100.7$

153102.7$
156164.75$

Year 1

Year 2
Year 3

64

Year 3
73%
Year
3

2311550$

2357782$
23194937$

ESTIMATED POTENTIAL REVENUE FROM

NEW PRODUCTS IN EXISTING MARKETS
(NEW PRODUCT DEVELOPMENT)*
Year 1

Year 2
Year 3

480322$

489929$
499727$

ESTIMATED POTENTIAL REVENUE FROM

NEW PRODUCTS IN NEW MARKET
SEGMENTS (RELATED DIVERSIFICATION) *
Year 1

Year 2
Year 3

60040$

61241$
62466$

64

Conclusion

Haleeb Foods is well establish company which is

competing with multinational companies and has
70% market share in dairy industries which makes it
market leader. The Haleeb Foods are trying their
best to properly perform their operations. They are
following international standards like ISO standerds
and are using different tools to continuously
improve their operations. They are introduced new
technology in their production process first time in
Pakistan. They are providing quality products. There
human recourse policies are also good. The locations
which they have selected for their operations are
beneficial for the collection of milk and distribution.
There layout

64