Professional Documents
Culture Documents
Introduction
Introduction
Packages Limited was established in 1957 as a joint venture between the Ali Group of
Pakistan and Akerlund & Rausing of Sweden, to convert paper and board into
packaging for consumer industry.
Over the years, the Company continued to enhance its facilities to meet the growing
demand of packaging products. Additional capital was raised from sponsors,
International Finance Corporation and from the public in 1965.
Packages commissioned its own paper mill in 1968 having production capacity of
24,000 tonnes of paper & paper board based on waste paper and agricultural byproducts i.e. wheat straw and river grass. With growing demand the capacity was
increased periodically and by 1996 it reached 65,000 tonnes per year.
Since 1982, Packages Limited has a joint venture with Tetra Pak International in Tetra
Pak Pakistan Limited to manufacture paper for liquid food packaging and to market
Tetra Pak packaging equipment.
In 1993, a joint venture agreement was signed with Mitsubishi Corporation of Japan for
the manufacture of Polypropylene films at the Industrial Estate in Hattar, NWFP. This
project, Tri-Pack Films Limited, commenced production in June, 1995 with equity
participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company for
Investment Funds, Saudi Arabia, and General Public. Packages Limited owns 33% of
Tri-Pack Films Limited's equity.
In July 1994, Coates Lorilleux Pakistan Limited, in which Packages Limited has 55%
ownership, commenced production and sale of printing inks.
In 1996, a joint venture agreement was signed with Printcare (Ceylon) Limited for the
production of flexible packing materials in Sri Lanka. This project packages Lanka
(Private) Limited commenced production in 1998. Packages Limited owns 62% of this
Company.
COMPANY
BOARD OF DIRECTORS
Asadullah Khawaja
Istaqbal Mehdi
Khalid Yacob
Kirsten Rausing
INFORMATION
LEGAL ADVISORS
Hassan & Hassan-Lahore
Orr,Dignam & Co. Karachi
BANKERS
ABN Amro Bank
American Express Bank Limited
Citibank N.A.
Credit Agricole Indosuez
The Global French Bank
Deutsche Bank A.G.
Production of its own consumer goods e.g. Rose Petal and Tulip tissues,
Finance division
Art Department
MIS-Department
Reproduction Department
Planning departments
ORGANIZATION'S CULTURE
Here are some key elements of Packages culture:
Fostering innovation.
Technological advancement
Teamwork
QUALITY POLICY
prices
through
customer-driven
and
service-oriented,
dynamic
management team. To meet this obligation, the Company will continue updating of
employee skills by training, acquisition of new technology, and regular re-evaluation of
its quality control and assurance systems. Appropriate resources of the Company will be
directed towards achieving the quality goals through employees, participation.
Save raw materials including energy and water, and avoid waste.
Ensure that all its present and future activities are conducted safely, without
endangering the health of its employees, its customers and the public.
Provide environmental, health and safety training to all employees and other
relevant persons to enable them to carry out their duties safely without causing harm to
themselves, to other individuals and to the environment.
Ensure that all its activities comply with national environmental, health and
safety regulations.
This policy shall be reviewed as and when required for the betterment of the same.
PRODUCT DEVELOPMENT
Two way process:
1.
Internees
2.
Employees
MARKET RESEARCH
They go to the market-check the packaging of different products which are not made by
packages then they come with new ideas or modification in the existing packaging.
REVERSE CYCLE
Their existing or new customer come to them and tell them about their needs for
modification or packaging of new products.
RESEARCH & DEVELOPMENT
Their research and development department work for the modification of packaging
PRE COSTING
Get the price of different material and tell to the customer about the rough estimate
QUALITY
Quality check (acceptable to customer)
SAMPLES
Then they make the sample of the product
TRIAL
Take the trial first on their own machine and then give trial to customer
PRODUCTION
If the customer will satisfy and place the order then they start the production of the
product
PRODUCT MIX
Basis of segmentation
1.
Industrial product
2.
Consumer product
Corrugated Department
2.
Carton Department
3.
Flexible Department
4.
CORRUGATED DEPARTMENT
In this department the CWCs (Corruwall Cartons) are made for the industrial products
like textile products, little machinery, and sugar etc. Packages has been producing
CWCs since 1974, which are manufactured in a variety of sizes. These CWCs provide a
great value for the in-country distribution and export of fresh fruits, garments, shoes and
textiles etc.
MAJOR CONSUMER AREAS
1.
Textile Industry
2.
3.
4.
Sports Industry
5.
Fruit Cartons
MAJOR CUSTOMERS
Some major customers for CWCs include:
1.
2.
3.
4.
5.
Lever Brothers
6.
Rupali group
7.
CARTON
Cigarette Industry
2.
Biscuit Industry
3.
Sweets
4.
Tea Cartons
5.
Detergents
6.
Shoe Cartons
7.
Match Industry
MAJOR CLIENTS
1.
LINE
2.
3.
4.
Lever Brothers
5.
6.
7.
8.
9.
10.
11.
BATA
12.
Service Shoes
FLEXIBLE
Soap industry
2.
Sweets
3.
Detergents
4.
Cooking Oils
5.
Biscuit Manufacturers
6.
Shampoos
7.
Snacks Industry
8.
Different food items like salt rice ketchup, custard powder etc.
MAJOR CUSTOMERS
1.
Lever Brothers
2.
3.
Colgate Palmolive
4.
LINE
5.
Continental Biscuits
6.
7.
8.
Tripple-em snacks
9.
Dane Foods
10.
Sufi products
11.
POLY
&
PAPER
CONVERSION
PRODUCTS
In this department the following main packaging is prepared:
1.
Paper cups
2.
Paper plates
3.
Gum tapes
4.
Poly bags
IMPORTANT FEATURES
1.
2.
Paper cup machine has capacity to make 4000-5000 cups per hour.
3.
4.
Fisher & Krecke of Germany, with the capacity to print 150-meters per minute.
MAJOR CUSTOMERS
1.
2.
3.
4.
5.
6.
INDUSTRIAL
PAPER
PRODUCTS
CUPS
TARGET MARKET
Air lines, ice cream manufacturers, soft drink manufacturers.
SEGMENTATION
PIA, Aero Asia, Bhoja,
Walls, Igloo,
Coca-Cola, Pepsi Cola.
PAPER
TARGET MARKET
Bakers, airlines, food chains.
SEGMENTATION
Gourmet, Rahat Bakers,
PIA, Aero Asia, Bhoja,
KFC, McDonald's, Pizza Hut.
PRICING
PLATES
Pricing is based on long term relationship building, it means that for the first time if they
have to sell at breakeven, they go for that so that next time the customer come to them.
So prices are reasonable. Markup pricing technique is used they are believing
2nd school of thought, that they do not cover all cost from innovators rather they slowly
cover their cost.
PROMOTION
They are using personal selling for promotion of their products. Employees and
internees go the customers, they communicate about their product and in this way they
create utility of their product.
PLACEMENT
If the customer demands that product is placed at their godowns, they place and get
placement charges, and if customer want to take himself from the company, they also
allow this.
CONSUMER PRODUCT
1.
Rose Petal
2.
Tulip
It was 1981 when 'Packages' smell opportunity and felt the demand for disposable
convenient and hygienic tissues in Pakistan .so in 1981, 'Packages' modified one of its
paper machine to produce tissue paper-production was started and 'ROSE PETAL
brand was launched for the facial tissue.
COMPETITORS AND MARKET SHARE
For tissues 'PACKAGES' has 80% of market share that's simply a giant share. So there
is not very intense competition.
ROSE
TARGET MARKET
PETAL
Their target market is upper class middle class & educated people
TARGET MARKET
Their target market is lower and middle class
BASES FOR SEGMENTATION
Age (above 18 years)
Income group (middle & lower class)
PRICING
The target market for tulip is middle & lower class so the price of tulip is less as
compare to rose petal
PROMOTION
For the promotion of tissue papers advertising is the largest promotion tool attracting
about 70-80% of total promotional budget and in fact advertising is the most powerful &
effective media for consumer sales.
They specially target the house wives and their add is showing specially during the
news.
REASON
Hose wives also see news.
Why not during the drama because there are lot of adds and during the interval they
simply go to kitchen to prepare tea or to complete the food which they are cooking.
For the promotion of tissue papers specially, advertising is the largest promotional tool,
attracting about 78-80% of total promotional budget and in fact advertising is the most
effective media for consumer sales.
PLACEMENT
Packages have 172 professional distributors.
They get the lots from their godowns & then distribute it in all over.
Pakistan to the retailers and whole sellers.
SWOT
ANALYSIS
STRENGTHS
Skilled Workforce
Packages enjoys an educated and skilled work force to perform its operations e.g. in
Industrial Marketing Department all new hired sales executives are MBAs. On technical
side Packages has 2-Ph. Ds., 99- engineers and 314-diploma engineers.
ISO 9001
In compliance with worldwide standards, the ISO-9001 certificate has been awarded to
"Flexible line" and "Carton line" of Packaging division.
Large-Scale Economies
Since Packages is a giant setup, so it enjoys the economies of large-scale as well e.g.
its fixed cost is reduced as it is spread over more number of units.
Goodwill
No doubt, Packages occupies a respectable and trustable image and market reputation,
serving as a valuable asset for the Packages.
Advanced Technology
To meet the quality requirements of its customers Packages contains the latest paper
producing and packaging technology and most of machinery is imported from different
countries like Germany, USA, Switzerland, etc.
Advance Payments
In most of the cases and especially from new customers, Packages deals with the
payments in advance. So it has to put less efforts to recover the payments.
Training
In Packages employees are given necessary and comprehensive orientation before
starting the job. Moreover other training programs are also arranged to kept the skills of
employees up-to-date.
WEAKNESSES
Slow Information Flow
Information flow between regional offices (of Karachi, Islamabad) and production lines
(Lahore) is not very quick, improper and manual i.e. by post normally.
Due to latest printing technology, the demand for offset printing is decreasing day by
day which is a traditional printing mode used in Packages.
Packages is facing a strong competition from the Cottage Industry in Karachi producing
corrugated cartons.
TABLE
OF
CONTENTS
Introduction.......................................................................................................................
1
Mission Statement........................................................................................................... 3
Company Information...................................................................................................... 4
Main
Operations............................................................................................................... 7
Departments......................................................................................................................
7
Organization's Culture.................................................................................................... 8
Quality
Policy.................................................................................................................... 9
Product Development................................................................................................... 11
Product
Mix..................................................................................................................... 13
Corrugated Department................................................................................................ 14
Carton
Line..................................................................................................................... 15
Flexible Line................................................................................................................... 16
Industrial Products......................................................................................................... 19
Paper
Cups..................................................................................................................... 19
Paper
Plates................................................................................................................... 19
Consumer Product........................................................................................................ 21
Rose
Petal....................................................................................................................... 21
Tulip................................................................................................................................. 2
Swot Analysis................................................................................................................. 24
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