Marketing Plan

HALEEB MARKETING PLAN

T

Marketing Plan

NUST BUSINESS SCHOOL

MARKETING FINAL PROJECT
SUBMITTED TO: MA’AM ZEENAT JABBAR SUBMITTED BY: AEISHAH ARSHAD

Marketing Plan

WAJEEHA RIAZ ZAHRA SAJID IQBAL JADOON BBA 2K7 (B)

ACKNOWLEDGEMENTS
First of all, we would like to thank Almighty Allah who gave us the strength to complete this report to the best of our abilities. We would also like to thank our beloved parents and friends because without their incessant support, we could not have completed this project. Last but not the least we would like to thank Ma’am Zeenat Jabbar and all our teachers for helping us out at numerous occasions and solving all our queries related to this project.

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DEDICATION
This report is dedicated to Prophet Muhammad (PBUH) who brought the world out of the darkness of ignorance. We would also like to dedicate this report to all those people who do not get the kind of opportunities that we do and are living a life of misery. This report is also dedicated to our loving parents because whatever we are today, it is because of them.

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EXECUTIVE SUMMARY:
The report focuses on formulating a marketing strategy for Haleeb in the coming year. The report starts with a brief introduction of the company and an overview of Haleeb’s main competitors in the packaged milk industry. A detailed SWOT analysis highlights the strengths and weaknesses of Haleeb as a brand, the kind of opportunities that Haleeb can capitalize on and the weaknesses that Haleeb needs to overcome to survive the growing competition in the packaged milk industry. Haleeb’s distinct sense of ownership for the color blue and outstanding qualities like the thickest and purest milk make Haleeb a brand worth noticing, however weak distribution channels and a not very persuasive advertising strategy can make the customers forget the brand as quickly as it registered itself. A favorable macro environment is very important for efficient functioning of any company. The PEST analysis of Haleeb emphasizes various Political, Economic, Social factors and Technological factors that Haleeb needs to consider while formulating its marketing strategy. We have also discussed the segmentation techniques that we have used to segment the market for Haleeb. AIOD framework has been used for

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segmentation and the Activities, Interests, Opinions and Demographics of the various segments have been discussed in detail. Further in the report we discuss how do we want to position Haleeb in the eyes of the customers. Perceptual maps show the attributes that Haleeb is high on and the qualities that it lacks. A positioning statement has then been developed keeping in mind the various customer perceptions about Haleeb. The four Ps are perhaps the most important part of a firm’s marketing strategy. We have analyzed the Product, Promotion, Price and Placement in detail and then given our recommendations. The report also highlights our sales expectations for the coming years as a result of our marketing strategies and developed a marketing budget for both above the line and below the line promotion of Haleeb. This marketing plan emphasizes that Haleeb as a brand enjoys brand loyalty and has a number of strengths but to retain its customer base and survive the fierce competition in the packaged ilk industry, it has to work a lot on its marketing strategy and change its image in order to adapt to the changing environment.

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COMPANY INTRODUCTION

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Haleeb Foods was established in 1986 and its first product was Haleeb milk. Haleeb Foods is one of the fastest growing packaged food companies in Pakistan. Recently, Haleeb Foods has built yet another plant in Rahim Yar Khan whose purpose is to provide Haleeb’s quality products to maximum number of consumers. It has 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.

CORE VALUES:
• Build branded food business to improve quality of life by offering tasty, sage, hygienically processed, 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. 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.

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COMPETITOR ANALYSIS

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Haleeb introduced distinctively blue tetra packs to the market in 1986. Its first real competition came in the form of uniquely colored triangular and rectangular packs of MilkPak which was already there in the market since 1981. Milk Pak, however, further promoted itself and increased its market share in Pakistan when Nestle took over it. By 2006, the dairy milk category was growing at 20 percent annually, and Milk Pak and Haleeb were well known brands with distinctive colors and brand promises of providing high quality, natural and healthy milk. Milk Pak was identified by its green and white packaging—the colors of the country—and offered a brand backed with the strong support of Nestle, coupled with its own traditional heritage. Haleeb was recognized as the blue brand, and perceived to have the "naturally thickest" milk. With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely resistant to newcomers. Evidently, when Olper’s came in the market the battle between the packaged milk products became more intense. Haleeb implemented a response. Despite declining market share, Haleeb increased its marketing in the media and commitment to promoting its brand. Also, newcomers such as the generically-named Good Milk and Pakola Milk have tried penetrate the market, but without much success.

GROWTH OF HALEEB OVER THE YEARS:

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2005: The market for Dairy food in Pakistan increased from 2000-2005, growing at an average annual rate of 3.5%. The leading companies in the market in 2005 were ➢ Nestle S.A. ➢ The second-largest player was Haleeb Foods ➢ Millac Foods in third place. In 2006 Haleeb achieved undoubted leadership in the liquid packaged milk category with market share of 56%. Haleeb Foods was one of the fastest growing companies in Pakistan with reaching to revenue of US $ 120 for the year 2006-07. The market for Dairy Food in Pakistan increased from 20012006, growing at an average annual rate of 7.0%. The leading companies in the market in 2006 were ➢ Haleeb Foods Limited. ➢ The second-largest player was Nestle S.A. ➢ Unilever in third place. 2008: Olpers has a market share of close to 22 percent—second only to Milk Pak (estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the multi-billion rupee packaged milk category meant business. Following are the current market shares for some of the packaged milk producers in Pakistan. ➢ Milk Pak (estimated at 40 percent)
➢ Olpers (close to 22 percent)

➢ Haleeb Milk 19 ➢ Others 19

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SWOT ANALYSIS

Strengths:
Brand Recognition among Masses:
Haleeb milk is a product of Haleeb Foods Limited. Consumers can easily relate to it because of the colossal brand awareness that Haleeb has created over the years. As it is regarded one of the pioneer brands in the milk industry, customers have an association with Haleeb and see it as a premium quality brand.

Exports:
Apart from its popularity in Pakistan, it has gained worldwide recognition by its exports to other countries. It can further distribute the brand through better channels abroad because of its long term relationships with its trading countries.

Product Innovation:

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Haleeb milk is in focus for many years in innovating and improving its milk products by introducing flavored milk and other new products in this category. Other than Candy Up flavored milk, Haleeb has introduced types of milk products that cater to the needs of different people. Their products range from Haleeb Milk, Haleeb bottle etc.

Public Relations with farmers:
Haleeb has been interacting with the farmers and over years it has developed a very good reputation. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company. This is an added advantage and strength for the company because it will never be short of milk production.

Owning Blue Color:
The company has owned the color blue like Nestle has owned green and yellow as its corporate color. This gives advantage to the company from the customer’s point of view. Whenever the customer enters the store to shop for the dairy products, one of the colors would be blue to remind him about Haleeb milk.

Weaknesses:
Supply chain:
The company has a complex supply chain and the main issue for Haleeb is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel. The fragmented nature of the Pakistani market complicates things more.

Local Distribution:

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The local distribution (within Pakistan) for Haleeb is not very strong. The reason may be the small number of distributors for the firm in the country. Therefore it needs to improve its network of distribution in the country. Because of the lack of local distribution Haleeb milk is not easily available everywhere. Customer experience shows that Haleeb is not available as readily as Olpers and Milk Pak, at least these days.

Haleeb Advertisement Strategy:
In order to effectively reposition itself according to the new environment in the packaged milk industry Haleeb needs to work a lot on its advertising strategy. In the past three years only 3 new TVCs have been aired by Haleeb despite the fact that it is losing a lot of customers to Olpers. In order to retain its customers, Haleeb needs to develop TVCs and Print Ads which should tell the customers something more than the fact that Haleeb is the best milk for tea.

No substantial company information:
Haleeb also fails to deliver on completeness; given the supposedly massive image the brand has built, there is no website. Besides there are no compliance reports as in no annual reports or marketing strategy reports about Haleeb milk. There are no other resources available such as brochures, informational booklets etc to retrieve any sort of information about Haleeb milk.

Packaging:
Haleeb is completely dependent on Tetra Pak for its packaging of milk as well as other dairy products. Because of its monopoly in the packaging sector, Haleeb has to increase its budget in order to accommodate its packaging cost.

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Opportunities:
Increased funding by Government:
Government has increased farmer’s funding in its new budget plan. This is an opportunity for Haleeb foods because previously due to any catastrophic situation, it had been difficult to store milk for longer periods of time. Secondly not enough fodder was available to feed to the cattle in order to milk them.

Change in Lifestyle:
Because of the change in the lifestyle, most people are turning more towards the packaged products; therefore the sales of packaged products are on the rise. This can be one of the great opportunities for Haleeb to increase its market share.

Awareness:
Because of the awareness among the masses about the hygiene issues, the trend is more towards the packaged milk. This is an opportunity for Haleeb as more and more customers are turning towards packaged milk from loose milk and these are the customers that Haleeb should be targeting along with retaining the customers that it already has.

Third largest producer of milk:
Pakistan is the fifth largest producer of milk in the world with a total production of 32 billion liters of milk a year. This gives milk producers of Haleeb an opportunity to increase their sales and exports to foreign countries. As there is a cut throat competition among the world producers of milk, therefore to maintain its position Haleeb should strive to deliver the best quality milk.

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Threats:
Competition:
Despite many of the advantages over others, Haleeb milk has to face fierce competition from its rivals in the milk industry. Many newcomers in the market have taken the industry by storm but still there is room for improvement. Competition seems to be getting tougher as a result of new players like Olpers and Good milk entering the packaged milk industry.

Perceptions and Price Differentials:
Consumer’s perception and price differentials can prove to be a threat for any company. It is important that Haleeb comes up to the expectation of the customers and fulfills its conformance quality i.e the company should meet its promised specifications. Consumer’s preference change with times and prices might create certain barriers in terms of the profit margins for Haleeb. For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy loose milk.

Future Uncertainties:
Regarding the prevailing economic condition of the country there are future uncertainties regarding the milk industry. Many businesses have become the target of the current situation and have failed miserably in the initial year of their start; therefore Haleeb has to be careful while making the future marketing strategy.

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PEST ANALYSIS

Political/ Legal Factors:
The current political instability can have adverse effects on the milk producers in the country. As Haleeb is also in involved in large scale exports of milk to North America, South East Asia, Africa, Middle East and Eastern

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Asia, political stability and favorable tax and tariff policies, environmental regulations are necessary to support the efficient working of the dairy industry in Pakistan. Around 96.5% of the milk in Pakistan is coming from the informal channel, that is the local milkman and only 3.5% of it is processed. The informal markets lack vertical integration. The current government is setting up livestock business advisory centers providing animal health and artificial insemination services which presents a good investment opportunity. Specialized milk collection units can enhance vertical integration in the sector. To help increase milk collection and improve milk quality in rural areas of Pakistan, the government has abolished duties on milk chillers of less than 3,000 liters capacity. In the 2006-2007 budget, the government announced numerous subsidies and tax breaks for the dairy processing industry. This includes exemption of sales tax on packaged milk and subsidized import of processing and other equipment.

Economic Factors:
The recent hike in the inflation rate and global recession has greatly affected the purchasing power of the consumers. Many of them have lowered the consumption to cope with the rising pressure on income. UHT tetra pack milk is considered expensive by the Pakistani masses and the rising inflation has further increased the trend towards loose milk. Some customers have switched away from the packaged milk while others have decreased their consumption. Because of all these factors, there is immense pressure on the

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margins of packaged milk producers and they are forced to keep their prices stable. The rising interest rates set by the State Bank of Pakistan has affected the expansion projects of the packaged milk producers as well. Other than this, the competition in the packaged milk industry is increasing day by day, especially since the introduction of Olpers by Engro foods. The brands already there in the market are repositioning themselves to cater to the growing market. Many of them are planning expansion and the competition in the market is growing tremendously.

Technological Factors:
Demonstrable experience in the field has shown that the milk yields per animal in Pakistan can be doubled within two years through scientific feeding, breeding, and marketing. An Institutional framework should be established for training the farmers in scientific feeding and breeding. Together with this, if the logistics could be set up to collect milk from the farm door by means of refrigerated transport, milk output in Pakistan could be doubled. Cold storages at airports could facilitate milk exports to the milk deficit countries in West Asia, Central Asia and South East Asia. There is a dire need of the establishment of a sound, well established marketing chain of UHT Milk. There are a small number of cold storage facilities in the country because of which a large amount of milk is lost and cannot be processed. The cold storage facilities are expensive and are out of the reach of small farmers and peasants. Secondly, the shortage of electricity also poses a problem for the functioning of such cold storage facilities. To process the maximum amount of milk, government needs to

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take the task of establishment of cold storage facilities on itself and take an initiative. Currently, most equipment for storage and processing is being imported from Western countries in Europe, etc. This leads to greater need for incountry expertise for the purposes of operations and maintenance. The government should try to facilitate technology transfer options within the region, especially between countries where operational standards as well as pricing and affordability are at par.

Socio-cultural factors:
Milk consumption in Pakistan is very important (the highest in Asia). Pakistan is the fifth largest milk producer in the world and its contribution to GDP surpasses all major crops with about 50 percent of the value added in the agriculture sector supported by livestock. According to a recent Consumer Preference Survey (CPS) conducted, simultaneously, by students of the leading business schools in Karachi and Lahore, 80 per cent of people surveyed confirmed that they drink milk regularly. The survey sample included a cross section of socio economic groups. Milk is considered one of the prime sources of nutrition in rural and urban areas and is a very important part of diet in all circles. But the majority in Pakistan prefers loose milk over packaged milk due to a number of reasons. In order to penetrate the Pakistani market the packaged milk providers have to work on changing the perceptions of the masses about milk. In Pakistan,

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the norm is to get up in the morning and get the fresh milk (straight from the cow) from the ‘doodh wala’. It is a general perception that only loose milk is fresh and free from preservatives and thus healthy. For substantial penetration of the market, packaged milk providers have to overcome all such perceptions and generate awareness about the safety and healthiness of packaged milk. This will however require a lot of time and patience because most of the people are not willing to spend additional amount of money on packaged milk when they are convinced that it has a lot of preservatives and is unhealthy. This culture however is changing now with the advent of skimmed and flavored milks and there use in tea, deserts and other beverages. One of the factors that hinder the growth of various packaged milk brands in Pakistan is the Price. The loose milk from dairy farms and milkmen are way too cheap as compared to the packaged milk which is expensive. So for the penetration of the market, the packaged milk providers need to improve their prices too and work on cost effective treatment methods for milk.

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SEGMENTATION ON THE BASIS OF AIOD FRAMEWORK

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Needs

Activiti es
School, College, lots of sports, entertainm ent sources include T.V, internet etc. Mostly working class, tiring schedules, long working hours, active in social and cultural events. Ranges from the working class to the retirees, not usually very active in sports. School, College and university,

Interes Opinion ts s
New Fads and Fashions, Lots of hanging out, Junk Food. Opinions about culture, politics and education are mostly based on observation. Have firm opinions about politics and culture. Opinions about different products are hard to change. Try to own their culture, plan about the future, interested in politics and economics. Their opinions about culture,

Demograp hics
No specific geographic location. Mostly students. Age: Infants to 18.

Competit ors Offerings
Most competitors offer milk that is high in Iron and Calcium.

Nutriti on

Teadrinki ng

Like to spend time with family and friends, traditional food.

The age group starts from 20 onwards but specifying an upper limit is difficult.

Olpers and Milk Pak have repeatedly emphasized themselves as the best milk for tea.

Habitu aldrinki ng

Usually family oriented interests.

Income varies both rural as well as urban population. Family size varies too.

The quality and thickness of milk varies among different brands being offered. The offerings by competitors are mostly identical.

Icecream and

Spend more time hanging out with

Usually the urban teenagers, kids and university

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shakes

social events include concerts etc wide ranging hobbies from watching movies to surfing the net.

friends than with family, are usually up to date with current trades and fashions.

Traditi on-al Desert s

Working class, students, retirees, children, social and cultural events include Eids, weddings etc

Prefer traditional Pakistani food, cultural influence in fads and fashions are evident.

religion, different products are ever changing. They are usually more prone to change and their opinions are governed more by logics then upbringing. Their opinions are usually governed by traditional and cultural mindset.

students. Family size is not very large and varies from 4 to 10.

The demos vary widely. We cannot specify a specific age limit, education or rural and urban boundaries.

Identical offerings by Olpers and Milk Pak.

Market Positioning:
The potential market for Haleeb Milk is the customers who use milk for different purposes. They range from housewives to children of different ages, taste-conscious people working at different places and by some of the

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food companies and hotels/restaurants that specialize in desserts and different dairy products. There are many other competitors along with the Haleeb milk in the market. These are: ➢ Olpers ➢ Nestle Milk Pak ➢ Nurpur ➢ Good Milk ➢ Others All of them have positioned themselves in some unique way so as to get a competitive advantage over the other. There are many attributes or dimensions related to the product space of Haleeb in the milk industry. Through these attributes Haleeb milk can be positioned on different perceptual maps amongst its competitors. Following are some of the attributes for Haleeb milk and its competitors that can also be mapped at different perceptual positions. Price vs. Promotion Packaging vs. Distribution Pure milk vs. Thick milk All purpose milk satisfaction vs. versatility Good for health vs. Emotional involvement in taglines

PRICE VS PROMOTION:
The prices for Haleeb and its competitors are more or less the same. Therefore Haleeb has no added advantage over others in prices. As the whole industry has

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the same market rates, therefore no one company has an advantage over the other. Haleeb throughout its marketing strategy has positioned itself with the rates that appeal their target customers.Haleeb milk producers are not working very well on the promotion side. Their ad campaigns had been very few in the past and most of the ads used to be on-aired in Ramazan only. On the other hand many of its competitors had positioned them better by launching a series of ad campaigns that could be suited to any big event like Eid, Ramazan etc.

PACKAGING VS DISTRIBUTION: Packaging of Haleeb milk in blue color is quite different and distinctive from the typical red and green packing used by other competitors. The packaging of Haleeb became more distinct and was readily recognized by its customers when other new comers entered the market and launched the product with the color

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different from Haleeb milk. The distribution strategy of Haleeb milk is not as strong as its other competitors’. The reason is that there are very few distributors for Haleeb milk as the competitors have taken larger shares for this in the market.

PURE MILK VS THICK MILK: In terms of purity, one of the competitors of Haleeb milk i-e Milk Pak has a competitive advantage over all others local brands in the milk industry. The tagline is strong enough to convince the customer that no other milk can be as pure as theirs is. On the other hand Haleeb tries to maintain brand insistence by emphasizing that the milk that they provide is the “Gaarha doodh” available in the market. Their most recent promo even shows that it is best to be used for making tea, desserts and even can be used for drinking purposes by teens and kids.

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ALL-PURPOSE MILK (SATISFACTION VS VERSATILITY): The Haleeb milk brand has not been positioned as all-purpose milk until very recently. It is because the tagline “Aik Gaarha rishta umar bhar k liye” emphasizes much on its thickness than on the versatility of the milk. On the other hand its major competitor (Olpers) emphasizes that their product apart from providing satisfaction with its taste is an all-purpose product from the very start. Hence its tagline is meant for everyone especially for those who live life to the fullest. Olpers and Milk Pak always try to meet the customers’ unmet needs. Processed milk is seen lacking some of the nutrients due to so many processing stages through which it passes. But Haleeb’s main competitors position themselves with milk that is full of nutrients.

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GOOD FOR HEALTH VS EMOTIONAL ATTACHMENT WITH THE TAGLINE: Haleeb milk has emphasized from the beginning on the marketing strategy that promoted their product vitally to be used for tea purposes. To gain a large percentage of the market share the competitors of Haleeb Milk have focused their marketing strategy mainly on the purity and naturalness of milk that definitely leads to healthy lifestyle. Haleeb has been targeting the customers from the beginning that are either very particular in making good tea or using thick milk for preparing desserts. There is always an emotional attachment associated with brands nowadays. Haleeb along with Olpers has tagline strong enough to attract its target market. So, it can be said that Haleeb milk tagline has played a major role in positioning Haleeb as a powerful brand. Therefore the Haleeb with all other competitors can be positioned at the same point on the perceptual map.

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THE FOUR Ps

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Product:
Haleeb milk is one of the products under the umbrella of Haleeb foods. It is pasteurized, homogenized and standardized UHT milk with 3.5 % fats and 8.9% solid non-fats. Haleeb is packed in easy to open, 6-layered Tetra Pack Brick Aseptic packaging and it comes with a three months shelf life. Milk is collected from approved dairy farms ensuring quality standards. The milk passes through 8 different tests before it is approved. Over the years, Haleeb has positioned itself as the best milk for tea with the taglines “Chaye banayay doodh Haleeb, sub se gaarha doodh haleeb” and “gaarha jo hai”. Haleeb identified a basic need of the customers and then worked on it because of which Haleeb proved to be an instant success. In order to meet the competition more effectively, Haleeb should work on improving the quality of its milk. We can do this by improving the milk formula and introducing added features likes calcium and iron. This would make Haleeb milk healthier. As these days Nestle Milk Pak, one of its major competitors has already launched Nestle Milk Pak with more iron. In the light of product life cycle it can be seen that the milk industry in general is in between growth and maturity whereas Haleeb milk in particular is at early maturity. So at this stage there is maximum brand awareness about our product. So there is a lot of potential in this product and if marketed in an effective way this could be a real success for us It is packaged in three sizes namely: 1,000 ml /12 packs carton 500 ml / 12 packs shrink-wrapped tray 250 ml / 27 packs shrink-wrapped tray

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All these sizes are the same as that of its competitors. The main aim of packaging milk in these three sizes is to make it more convenient for the different segments of customers. At present we do not propose any major change in the packaging of Haleeb milk except the introduction of disposable caps instead of the tear-open flap to make the packaging more convenient. Right now, the package contains the benefits of naturally thick milk like strong bones and teeth, faster growth and health for kids, stronger muscles, hair and nails and improved eye sight. The package highlights the fact that Haleeb is rich in Vitamin A, Vitamin D, Proteins and Calcium. Other than this, the package emphasizes that Haleeb has a proud heritage of training over 200,000 dairy farm owners to select the best breed of buffalos and develop specialized fodder. Premium quality fresh milk is then self-collected from these farms to ensure its natural thickness. On the package, Haleeb claims that nothing can beat a cup of tea made with Haleeb. A telephone number of Haleeb Care line is also there on the package which shows how much Haleeb values its customers. After improving our product and making it more nutritious we should highlight this fact in our packaging like Milk Pak highlights the added iron on its package. The corporate color of Haleeb is blue and Haleeb had tried to own the color over the years but recently Haleeb has added green color as well to add a Pakistani touch to the packaging because Milk Pak uses green and white packaging which has established it as a true Pakistani brand. In order to make our customers feel more affiliated we can also adopt the packaging strategy of havingdifferent Packages for different festivals. We can have special packages for different occasions Eid, Ramzan etc.

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Price:
The packaged milk market in Pakistan is becoming highly competitive day by day and in order to effectively deal with this competition, Haleeb uses competitive pricing. At present there is cut throat competition between Haleeb, Milk Pak and Olpers. The main reason for such a degree of competition is that the product in this case is the same. Secondly most of the customers are price sensitive so any increase or decrease in the prices of Haleeb would directly affect its sales. Brand Haleeb Milk Pak Olpers 250 ml Rs.16 Rs. 16 Rs. 16 500 ml Rs.32 Rs.32 Rs.32 1000 ml Rs.55 Rs.55 Rs.55 Source: Market Survey

In order to make Haleeb a real success in the market we can propose a number of improvements in the pricing strategy.

Discounts:
Haleeb can start with special discounts because with all the major brands offering equal prices, even a small reduction in price can produce a considerable effect. These discounts should be mainly cash discounts. Different discounts should be given on different sizes. These discounts should then be highlighted profusely in the print ads and TVCs. Here the

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main aim of Haleeb should be to attract customer attention. The following schedule can be used for determining the amount of discounts. Size 1,000 ml 500 ml 250 ml Normal Price Rs.55 Rs.32 Rs.16 Discount Price Rs.53 Rs.30 Rs.15

By giving this discount Haleeb would lead its competitors. Eventually its competitors would also respond by lowering their prices but by the time they do so it would be too late. Secondly this would help Haleeb improve its image in the mind of its both present and potential customers. Other than this, Haleeb can show its affiliation with the Pakistani society by giving special discounts on important occasions like Ramzan and Eid.

Bundling:
This is another option for Haleeb Foods. They can make special bundle packs of milk paired with Haleeb cream, butter or yogurt other than the ordinary milk packages. This will not only increase the demand of Haleeb milk but also the other products which are being bundled with milk. In this case its competitors might also respond in the similar way. Milk Pak is owned by Nestle which has multiple product lines, so bundling would be easier for Nestle .However in the case of Olpers bundling would be a little difficult because of their limited product line.

Promotion:

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Haleeb is involved in large scale export of its products but it needs to realize that it has to focus on the Pakistani market first. At the moment, Haleeb is not focusing much on its promotion and there is a dearth of new TVCs and print ads. So in order to regain the customer attention, Haleeb has to come up with an extensive promotional campaign including both above the line (APL) and below the line (BPL).

Above the line: TVCs
Recently, Haleeb has aired a couple of new TVCs but the frequency is not enough to register the newly repositioned brand so it needs to go for new TVCs and print ads. These advertisements should emphasize the uniqueness of Haleeb milk. Secondly this TVC should help Haleeb re emphasize itself as an all purpose milk not just as a tea whitener. Haleeb till now has used the cultural factor in its TVCs however we think Haleeb should use its nutritional appeal as a means of attracting the audience. The TVCs should use the thickness of Haleeb and the added features such as more vitamins, calcium etc as its USP (unique selling proposition). The TVCs should also show blue as Haleeb’s corporate color. This advertisement should use a slice of life as the executional frame work. Health and convenience appeal should be use. We also propose that Haleeb should have new TVCs on different occasions including both religious and national ones so that the customers should know that Haleeb is a part of their lives.

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At present only Olpers is engaged in massive TVCs. It airs different TVCs showing the significance of different occasions (like the Ramadan TVC). So if Haleeb also starts its massive promotional campaign through TVCs then initially both might not react and use the policy of wait and see. However if they see that this promotional campaign has led to an increase in the sales of Haleeb then they would also start extensive advertising.

Below the line:
A lot of below the line promotion is required by Haleeb.

Print:
It should also go for newspaper advertising. In this case it can go for a series of newspaper adverts. This series should be started before starting the TVC and then these print ads should be complementing the TVCs. If Haleeb uses any new strategies like bundling or discounts, they should be highlighted extensively using the print ads and TVCs

Bill Boards :
Haleeb should do outdoor advertising using different mediums. It can get some billboards at key locations in the major cities of Pakistan. These billboards would help Haleeb grab audience attention. Both Olpers and Nestle Milk Pak are using this medium very extensively and Haleeb should also pursue aggressive advertisements on billboards and tall walls to register itself.

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Wrapped Around Vehicles:
Wrapped around vehicles is another medium which can be used by Haleeb. This will also inform and remind the buyers about Haleeb. Competitors both Nestle Milk Pak and Olpers can also go for this medium of below the line promotion.

Free Samples:
We can make special packets of Haleeb and distribute it as free samples to the masses. This would motivate our potential customers to try our product and make it a part of their life style. One of our competitors Olpers has already used this technique.. Haleeb can also start giving Haleeb refrigerators to different small retail shops. They should also provide their own shelves which would be distinguishable from other brands. This would further improve Haleeb’s below the line promotion.

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Placement:
Haleeb uses an indirect channel of distribution. The main reason for using this indirect channel is that Haleeb is a consumer product and its customers are spread throughout many geographic locations in Pakistan. At present its placement and distribution strategy is not at its best and can be improved. So we plan to improve our relationship with all the intermediaries involved in the distribution channel of Haleeb. Haleeb should try to build more personal and strong relationship with wholesalers and large scale retailers who are its direct customers. Haleeb should try to increase the profit margins of the wholesalers and retailers. This would encourage them to stock Haleeb. Secondly we want that Haleeb should maintain sufficient stock levels with its wholesalers and retailers. In order to improve its relationship with the wholesalers and retailers Haleeb can also go for certain schemes with them, such as providing them with Haleeb refrigerator and displays shelves at point of sale. This would make Haleeb more visible to the customer and might eventually drive them to make a purchase.

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Haleeb should also to go for extensive distribution this would ensure that Haleeb is within the reach of its customers. We should try to ensure that Haleeb is equally available in urban and rural areas. This intensive distribution would help Haleeb become every ones’ milk. Both Nestle and Olpers also have a strong distribution channel and in the future also they will try to improve their relationship with wholesalers and retailers, as otherwise they would not be able to survive in the market.

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MARKETING GOALS AND BUDGET

SALES FORECAST:
On the basis of Haleeb’s past sales and the marketing strategies that we have now developed, we have forecasted Haleeb’s sale for the coming year. We have also kept in mind the seasonal effect because in summers, the sales of milk increase massively due to its increased usage in deserts, ice creams and different beverages.

Marketing Plan

First Quarter Sales Revenue 2% increase

Second Quarter 3% increase

Third Quarter 2.5% increase

Fourth Quarter 1% increase

The given sales forecast also takes into account the inflationary concerns and the fact that because of fierce competition, Haleeb cannot raise its prices. So for the revenue growth, Haleeb has to expand its customer base.

MARKETING BUDGET:
We have developed the following marketing budget for Haleeb for the first quarter of the next year. The budget for the next year should then be developed on the basis of the audience’s response to the ad campaign. MARKETING ACTIVITIES Production of 3 New TVCs Print Ads Bill boards TVCs aired on different occasions EXPENSES Rs. 4,500,000 Rs. 4,000,000 Rs. 7,500,000 Rs. 10,000,000

Marketing Plan

Radio Advertisements

Rs. 1,000,000

Because the themes of the present advertisements are worn out and old, we have suggested that Haleeb should reposition itself as a healthy brand, emphasizing on its nutritious value. For this Haleeb will have to come up with fresh new adverts. Haleeb has to start a massive new advertising campaign in the large cities first and then focus on the smaller ones later. For the production of new ads, Haleeb should focus on advertising its products by means of prominent and popular brand leaders. For these new adverts, Haleeb will require a budget of Rs. 4,500,000. These adverts should be aired at peak timings on channels like Geo and Masala TV. Other than this, Haleeb should also work on billboards and tall walls.

References:
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http://www.alibaba.com/member/pk100634245/aboutus.html http://www.dawn.com/2004/08/30/ebr12.htm http://www.nation.com.pk/pakistan-news-newspaper-dailyenglish-online/Business/16-Nov-2008/Interim-report-oneconomic-stabilisation-with-a-human-face/1 http://islamabad.usembassy.gov/pakistan/h05091601.html http://www.privatisation.gov.pk/Handout/HO-AR-08/Apr08/HO2942008%20Pakistan%20Finalizing%20Policy%20for% 20Tax%20and%20Duty%20Exemptions%20on%20Agricultur e%20Machinery%20Import-Syed%20Naveed%20Qamar.htm www.smeda.com

Marketing Plan •

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www.haleebfoods.com www.brandchannels.com www.dailytimes.com market survey Internet Center for Management and Business Administration, Inc. http://www.omanexpo.com/foodexpo/pdf/Food%20Expo%20 market%20report.pdf. McGrath, Michael E., Product Strategy for High Technology Companies J:\Positioning (marketing) - Wikipedia, the free encyclopedia.mht J:\Positioning - Marketing Basics - strategies, segmentation, niches, and more.mht
http://www.regoverningmarkets.org/en/global/innovative_practice.html http://www.researchandmarkets.com/reportinfo.asp?report_id=659081 market report of haleeb milk+mareting plan http://www.brandchannel.com/start1.asp?fa_id=445 http://www.quickmba.com/marketing/market-share/


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