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DECLINE IN SALES OF HALLEB MILK IN PAKISTANI MARKET

A Project Presented to:


The Faculty of Management and Social Science,
Northern University,Nowshera
In Partial Fulfillment
Of the Requirement of Degree

Bachelor of Business Administration

Submitted by:
Maqsood Jamal

NUN-113-0352

Contents

Dedication----------------------------------------------------------------------------------------------------2
Acknowledgment-------------------------------------------------------------------------------------------3
ABSTRACT----------------------------------------------------------------------------------------------------4
1. Introduction----------------------------------------------------------------------------------------------6
1.1 Importance of topic........................................................................................... 6
1.2. Introduction of the company............................................................................ 7
1.2.1 Important Happenings....................................................................................8
1.2.2 Organizational structure................................................................................. 8
1.2.3 Products......................................................................................................... 9
Company products history------------------------------------------------------------------------------9
2. Literature Review-------------------------------------------------------------------------------------11
3. Methodology--------------------------------------------------------------------------------------------13
Survey Details---------------------------------------------------------------------------------------------14
4. Results---------------------------------------------------------------------------------------------------17
5. Analysis of Survey------------------------------------------------------------------------------------25
6. Interview Summary of Sales Manager----------------------------------------------------------29
7. Recommendations/Suggestions------------------------------------------------------------------30
So the steps that should be taken are as follows:----------------------------------------------32
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8. Conclusion----------------------------------------------------------------------------------------------34
9. Beneficiaries--------------------------------------------------------------------------------------------35
References--------------------------------------------------------------------------------------------------36
Appendix----------------------------------------------------------------------------------------------------37

Dedication
I dedicated this project to my teachers and parents who motivated and support us to complete this
project in time and without whose help this project would have come to nothing.

Acknowledgment

First of all I would like to bow my heads before almighty ALLAH, the omnipotent, the merciful,
the beneficent that blessed us with such a lucid intelligence as I could endeavor my services
towards this project.
This project could not have been completed without the generous cooperation of many
individuals. The most special thanks of all go to my worthy supervisor Sir. Saeed Akhbar for his
kind attitude, keen interest, and valuable comments throughout the working of the project, that
counts in the preparation of this project report.

ABSTRACT
Milk is one of the most vital and foremost part of nutrition. It is known to be the obligatory
object of a Nations life. In Pakistan the consumption of milk is increasing annually. People want
superlative quality, superb taste and eye-catching packing. No one is going to compromise on the
above factors. In the time of recession people also become price conscious. The scenario which I
just explained can easily name competitive environment of (Dairy) Industry.
Haleeb milk is known to be a pioneer in tetra packing. Haleeb milk also leads the market for
decades. There was a time when everyone was devoted to buy Haleeb milk. But all of a sudden it
just disappeared from the market. No one wants to purchase Haleeb milk. It was not less than
distress that a market leader becomes unfamiliar brand.
In this venture I tried to uncover the root causes of decline in the sales of Haleeb milk in different
constituencies. My spotlight was marketing strategies, pricing strategies, executive relation,
supply chain, technology of Haleeb foods, interface with stakeholders, quality control and the
most important one i.e. customer care.
I anticipate that my exertion will give a clue of the current circumstances. It will grant a
thoroughfare towards promotion of Haleeb milk. The concern authorities need to go through my
testimony and think about my recommendations.

Chapter 1
Introduction
Scope of the study
MY primary research question is Why the sales of Haleeb Milk declined in Pakistani market.
They are known to be the trend setters of the dairy market. That time they are leading the dairy
market. No other competitor was able to beat them. But suddenly they lost their position in the
market and became an unknown brand of the dairy industry.
The focuss was on secondary issues which affect the sales of Haleeb milk. These issues or
problems are indirectly related to MY primary research question. The things like promotion of
products, supply chain, technology problems, management problems, quality control system of a
company, marketing steps and be in contact with your shareholders and with your important
customers can affect the process of sales.
I studied the above issues and come up with useful research findings. I conducted some
interviews and use survey method through questionnaires to find out those root causes and
problems which are creating hurdles in the sales of Haleeb milk. I involved all those parties
(management, customers, suppliers, retailers) in my research who are directly and indirectly
connected to the sales of Haleeb milk in Pakistani market.
I hope that my outcome of research and suggestions will help the company in bringing of
improvements in their different operations. This research will also help the company to know
about their current competitors and those who are going to be treating for Haleeb milk in near
future. Looking to the research findings management can easily draw a plan for the survival of
the product.

Introduction of the company


Haleeb Foods Pvt. Ltd. started its business in 1984 with the name Chaudhry Dairies Ltd. The
plant spreads over 37 acres of land which is situated at 62 kilometers from Lahore District Court,
with a capacity to process 80,000 liters of milk per day with a labor force of 150 workers. The
production process started in 1985 with UHT (Ultra High Treatment) liquid milk such as an
initial product which became very popular in no time. Haleebs administrators claim that their
plant adopted the latest technology for milk processing and thus it had an edge over other around
tInty plants in competition including Milk-Pak as all other plants are based on obsolete European
technology. The idea behind UHT investment was to provide consumers with the best quality of
packaged dairy and food products that no other company can produce. About four years later, the
company decided to enter a joint venture with Friesl and Frisco Domo (FFD) of Netherlands and
continued the activity from November 1989 to December 1991. This joint venture did not last
very long because of the change in global strategy of FFD and was amicably dissolved. Haleeb
then Int on its own till December 1998 till it signed a contract with Candia that is a market leader
in France. Under this agreement, the company launched Candia value added liquid milk products
all over the nation. The advantage of this agreement that Haleeb took is that Haleeb now has
access to the latest technique of production, technical know-how, etc. The major aim was the
quality production and that is why Haleeb discarded some of its products with the likelihood of
loss in quality. This made the company gain many successes on different frontiers and, now it
competes very Ill with all other multinationals and has an edge over all national companies
active in the dairy industry in Pakistan.

Important Happenings
The important happenings are described below.

1984 Founded as Chaudhry Dairies Limited


1987 Started sale of packaged milk under Haleeb brand
1989 Established equity partnership with CC Friesland, Netherlands
1991 Discontinued the partnership with Friesland Frico Domo
1998 Entered in franchise agreement with Cedilac, France
2004 Changed corporate name to Haleeb Foods
2005 New production facility fully operational at RYK

1.2.2 Organizational structure

1.2.3 Products
The company continued processing of milk to produce a large number of dairy products.

Haleeb Milk.
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Candia

Dairy Queen

Nrish

Butter

Cream

Desi Ghee

Lassi Drink

Company products history


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
2003

Haleeb N'rish Fortified Instant Full Cream Milk Powder


Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb

2004

Plain Yogurt, Haleeb Lassi Drink


Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink,
Candia Candy'Up Flavoured Milk

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2005

Haleeb Cream With Honey, Haleeb Tea Max with


Cardamom, Haleeb Labban, Haleeb Good
Day

2006

(Mix Fruit, Red Grapes, Mango Pineapple


Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico

2007

Nectar
Haleeb Cheddar Cheese

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Research Topic
The research topic is Why the sales of Haleeb Milk declined in Pakistani market.

Objective of the study


This project will help in following aspects.
To uncover the root causes in sudden decline of a leading Brand.
To analyze the different strategies of Haleeb Foods and its competitors.
Make plans for the Revival of Haleeb Milk.
Will enhance my skills regarding research and interpretation.

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Chapter 2
Literature Review
There are a lot of researches done by Dairy industries related how to increase the production
level of the milk. The main focuss of Dairy Industries is to improve the supply chain, marketing
and its production. Previously in the sector of Dairy Industries not in Pakistan even
internationally the researches are done on the production and development of the production
plants, some of the past researches on the topics of Low Production Pushing Up Milk Price, Milk
Production And Marketing By Small And Medium Scale Contract Farmers, Milk Marketing And
Value Chain Constraints, Attitude Towards TV Advertisements in Pakistan.
As in the recent published article by Tanvir Ali, University of Agriculture, Faisalabad, Pakistan.
Haleeb Foods Ltd has one of the largest nation-wide distribution networks delivering high
quality products, even in the most remote areas, via a network of more than 1,100 distributors.
Even though HFL is a company that insures the inclusion of small-scale farmers, there are still
some limitations on its approach which might, in the long run, exclude small farmers.
In the above article it is been accepted that HFL is on of the largest milk provider of Pakistan. It
has a huge network of distributors and farmers. But why it lost its position in market recently.
What are the issues that is causing decline in sales of Haleeb milk.
Mubarak Zeb Khan said in his article that; new players coming in the dairy sector like Nestle,
Olpers and others are investing in processing factories while no investment has been made in the
production side.

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In the above statement the author points out the treat from the competitors in the dairy industry.
Is it reason of decline in sales of Haleeb milk? They need to look their competitors strategy.
In Another article in Business Department, International Islamic University Islamabad Pakistan,
Muhammad Shahbaz Shabbir says Attractive Advertisement makes a deep influence on
childrens attitudes and behaviour, which especially leads to purchase behavior as Ill as purchase
request. Children can be categorized into positive and negative attitudes, while children
who have positive attitudes toward advertisement, their behaviour remain consistent with their
attitudes and they tend to make purchasing of that particular product whose advertisement they
have seen. Vice versa, children who have negative attitude toward advertisement they do not take
any step to purchase that particular advertised product. Older childrens negative attitudes is not
seen in their purchase behaviour, they usually pay less attention to the ad, which leads to less
awareness about the products, not better feeling about ad, therefore due to their negative attitudes
towards the product, sales deteriorates. Television Advertisement is the important tool of
diffusing the communication. It plays an important role in the development of young peoples
consumer behaviour. Children are known to be the big consumption of milk. So the Haleeb foods
limited need to concentrate on the children. Are they promoting the product smoothly?

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Chapter 3
Research Methodology
Sample size
Total number of questionnaire was 100. Nowshera, Mardan and Rawalpindi was my prime
location where the researcher carried out the research.
Data Collection

Literature Review

Interview method.

Survey method.

An intervieIr asking questions generally face-to-face to other persons conducts personal


interview. This sort of interview may be in the form of direct personal investigation or it may be
an indirect oral investigation. The method is particularly suitable for intensive investigations. For
interview I designed a script containing certain questions which are directly targeting research
topic in the form of primary and secondary questions. And I recorded interviews to get accurate
information without any misconception. The interview was taken from the retailers and area
sales manager. Interview of 20 retailers was taken. I chose this method because;
More information and that too in greater depth can be obtained.
IntervieIr can overcome any resistance, if any, of the respondents; this interview can be
made to yield an almost perfect sample of the employees.
Sample control can be maintained, as non-response generally remains low.

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In survey method a population sample of 300 is taken. Survey is to the validity of the
information that represents the populations that are being studied. The approach of the survey
helps to determine the focus of the study and allows better acceptance of the generalizations that
are being made. In survey I choose the area of Rawalpindi, Islamabad, Haripur, Nowshera and
End Users are from different walks of life. Survey questions are also composed on the bases of
Primary and secondary questions and that are directly focusing the research topic.

Survey Details
This survey and interviews are about the decline in the sales of Haleeb Milk. As in the past few
years its being labeled as one of the best National Milk of Pakistan but during the last couple of
years there is a much greater decrease in the sales of Haleeb milk.
In the research my target groups are end users and their age limit lays be taken 20- 45. I also
conducted interviews in different cities of the country. These interviews tell us the desires of the
customers. These interviews will help the company in many ways.
My questionnaires and interviews are based on the following factors.

Advertisement

Pricing

Taste & Quality

Packaging

Availability

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These factors create an important role in the purchasing decision that directly affects the sales of
any brand. So, for these reasons I covered all these areas of marketing.
After conducting the survey through questionnaires I come to know that the quality & taste of
Haleeb milk is a major cause of decline in sales. Haleeb milk also needs to revise their marketing
strategy. I also find out that there are some problems in the distribution channel. The distribution
channel is not up to the mark. The retailers have lots of complains about their distribution
channel. Some customers also think that the pricing strategy of Haleeb milk is not good. They
are increasing their prices while the quality is not improving at all.
For recapturing the market Haleeb milk needs to take following steps and should implement the
new strategies about marketing, quality and distributional channel. For regaining the trust of
customers Haleeb milk should maintain high quality. Tetra packing customers are going towards
other brands in dairy industry due to equal prices of the products so Haleeb milk should loIr their
prices to attract the customers. Most of the people think that Haleeb is not spending money
on promotion of their products so Haleeb milk should be advertised on T.V. Haleeb milk should
be advertised heavily if they want to attract more and more customers. They can also introduce
some packages like special discount for older citizens and children. They should introduce
special prices for retailers so they will work harder for the betterment of the Haleeb milk. Haleeb
foods need to hire professional people in the field of marketing and Quality control for the
survival of the product.
The data of questionnaires is shown on column charts. These charts will give us a clear picture of
situation. It will tell that what is going on in the market. These charts clearly indicate the needs
and wants of the customers. It tells us that where the company needs to improve. These column
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charts clearly tell us where the company is going wrong. Where the flaw leis... What the
customer is thinking about the products. How can be customers satisfied. These all questions can
be clearly judged and answer by the Haleeb foods. These column charts are the best method to
judge the situation of the market. Data is shown in term of percentage.
These charts will also give us clue about the competitors. Haleeb foods will be able to make
plans for the future. It also gives us information about the milk players in the market. Many new
players are entering in dairy industry so Haleeb foods need to be proactive rather than reactive.
Because todays dairy market is very complicated and tough. Every customer has its own
requirements. Every company wants to fulfill the needs and wants of the customers. But it is
almost impossible to satisfy every customer. So the company needs to satisfy group of the
customers to achieve market growth and maximize the sales of the customers. This method will
clearly help the company to make polices for group of customers.

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Chapter 4
Analysis
Data in term of percentages
Preference of buying Milk

The above table shows that the users of tetra pack milk are more as compared to open milk and
powder milk. As near 45% of people use tetra pack about 40% use open milk and only 10%
people use powder milk.
Usage of Milk

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Above 70 percent people use milk daily only a few responded that they use milk 3-4 times a Iek
and nobody use milk once Iek.
Buying of Haleeb Milk

More than 60% people do not use Haleeb milk only below 25% of people use it.
Size of Milk Pack

The above chart shows that above 40% people use litter pack of milk. Above 30% of the
respondents use 1/litter pack and above 20% use 1 litter pack. This shows people purchase less
quantity for daily use.
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Expenditure on milk

Respondents that fall in the category who spend on milk betIen Rs. 40-100 are few as compare
to others. Majority of the spend Rs. 10-15 each time for buying the milk.
Customer Favorite Brand

The bar chart shows that the favorite brand of majority of the respondents is Olpers.

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Promotion or Advertisement of Haleeb

This chart clearly indicates that the most of the respondents consider that the advertisement of
Haleeb milk as compared to other milk products is very poor.
Influencing factors of buying favorite brand

Taste and quality is the factor which influence the choice of favourite brand. Secondly the price
is the factors which comes next. Many respondents choice is also influenced by the

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advertisement of the product but their number in this category is as compared to price and quality
is less.
Place for buying Milk

Most of the people purchase it from retail shop their number is above 55%.
Factors influencing the purchase of Milk

Greatest Number of people think that quality is the major factor which can influence the
purchase of any one of the milk product. Secondly the availability is the factor in this regard.

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Milk Good for Tea

Greatest number of people uses fresh milk instead as compared to tetra and powder for tea.

Main competitor of Haleeb Milk

This shows that the greatest competitor of Haleeb is olpers then tarang comes on second number
and milk pack come at number three.

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Packaging of Haleeb Milk

About 60% of the respondents are satisfied with the packaging of Haleeb milk.
Improvements of Haleeb Milk

Most of the respondents consider that Haleeb milk should improve its quality. Their number is
about 45%. Above 25% respondents consider that price should be reduced. About 20% think
about the addition of new flavors.

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Before going to conduct interviews and survey I assume that the quality of Haleeb milk is not up
to the mark. I am also thinking that Haleeb milk doesnt promote itself as its competitors do. I
also assumed that may be there are some management issues due to which the sales of Haleeb
milk decreased. There Ire also some question marks on the plant and on the technology which
was being used by Haleeb foods. Promotion of the product was also a factor of decline in the
sales of Haleeb milk. I thought that supply chain is also causing some problems in the sales of
Haleeb milk. I Ire also thinking that might be inflation forced the people to reduce the
consumption of the tetra milk. Open milk and powder milk was also the factors in the decline of
the Haleeb milk. I also thought that may people want new packaging and more flavours in the
Haleeb milk.
After conducting the interviews and filling out questionnaires from customers and retailers I
found many things which need to be addressed and corrected. Many people are using open milk.
More than fifty percent customers are using tetra packing. But there are also some percentages of
customers who are comfortable to use powder milk. Still large numbers of People think that milk
which comes in tetra packing is not good for health. They think that tetra pack does not carry all
the vitamins and proteins while open milk do. Large numbers of people are using milk on daily
basis which is good for the Haleeb milk. This is really motivational factor for the company
suppliers and retailers who are selling Haleeb milk. Round about sixty five percent of the people
are willing to spend money on the consumption of the milk. But these spenders do not want to
spend too much. They are consumers of small and medium tetra pack. Some customers are
willing to give money for the larger pack. Little percentage is not willing to buy even small pack.
They think that sachet pack is enough for their consumption. Through survey I can easily say that
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Olpers milk is leading the dairy industry. Currently it is very difficult to stop the dominance of
Olpers in the Pakistani dairy market. Tarang is another tough competitor of Haleeb milk. Milk
Pak comes third in terms of market share. Many people are loyal customers of Milk Pak and they
want it in any case. People think that it is a multinational company therefore its quality is best
and maintained Ill by the company. Haleeb milk can be easily rated as less popular product in
dairy market. They are pioneers in the tetra packing therefore they are trustable in terms of
quality and packing. Most people still want Haleeb milk despite of decline faced by them. Good
milk and Everyday are the others competitors of Haleeb milk .But these two are not big treat to
Haleeb milk. Olpers, Tarang and Milk Pak are the brands which are causing problems for Haleeb
milk. They are the main and major competitors of Haleeb milk.
Large number of customers are impressed and influenced by taste and quality. They think that if
quality and taste is good then it is an excellent brand of milk and you need to go for this brand.
Price is also a factor which is considered by the customers. Advertisements also attract small
number of customers. Those commercials which consist of celebrities are the most influenced
advertisements. Some people are brand loyal and they do not want to shift to another brand. Very
less number of people is influenced by smart and beautiful packaging of a Milk Pak.
Placement of the milk product is very important and major step in the selling of the product.
Many people do not have access to big stores and supermarkets. Companies need to ensure that
their products are in Ill reach of the people. If I go through the survey I can easily find that half
of the population buys milk from retail (small) shops. People do not want to go to the
supermarkets and waste their time out there. Small shops are the best place to keep your product.
Bakery shops are another good place for the selling of milk products.

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People think that the quality of Haleeb milk is not bad. But it does not mean that the quality is
excellent. People want the best quality and the best quality is provided by Olpers and Milk Pak.
Milk is directly concerned with health and Pakistani people are really conscious about their
health. They do not want to face any troubling situation just because of the milk. They do not
want to purchase average quality milk. Therefore they are going for Olpers which is considered
being the best quality milk in the dairy industry of Pakistan.
Promotion plays a major part in the selling of any product. Many companies spend huge amount
of money on the promotion of their products. In todays busy world you need to inform the
people about your product and the features of the product.
But question arises here that how to advertise the product? Choosing a medium is tough task
for a marketing manager. Looking the results of my survey anyone can say easily that Television
is the best medium for the promotion of Haleeb milk. Through television large number of people
came to know about Haleeb milk. But another question arises here that which is the best time for
advertisement. Whether you need to advertise your product during cricket matches or during
drama hour is the best time for advertisement. This matter need to be solved by the marketing
experts of Haleeb milk. If one does not know the best timing for the advertisement then you are
wasting your money. Newspapers and magazines are the other two good sources for the
promotion of milk. Because some percentage of people does not watch television and they are
only interested to go through the famous newspapers of the country. New generation thinks that
watching television and reading newspapers are the wastage of time. If you have facility like
internet then why you are going for the other stuff. People also came to know of Haleeb milk by
internet. The people who are really busy in their lives only know about Haleeb milk by
billboards.
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Many people think that Haleeb milk is still the best but if they improved their taste and quality.
Bad Quality of any product can be resulted in low sales. Same is the case with Haleeb milk. They
are so far behind from their competitors. Improvement in quality and taste can give them the best
position in the Pakistani market. Good number of people also thinks that low pricing can give
edge to Haleeb milk. If Haleeb foods add some more new flavours to the product then it is a
possibility that they will lead the market again. They also need to look on other issues which are
causing problems is the sales of Haleeb milk.
Distribution channel is big problem for Haleeb foods. They need to solve this issue. Many
retailers are complaining about their distributers. Haleebs main distributers are not performing
their duties. They do not make sure about the availability of the milk. Therefore the retailers are
reluctant to buy Haleeb milk.

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Chapter 5
Conclusion
At last I conclude this research report on these arguments. It was a good experience for us
regarding research work. I have not done before things like questionnaire, interview script, plan
and conduct an interview and survey procedure. This project gave us a clue of research method.
This research will help us in future and in my professional life.
Now lets talk about the findings and outcome of the research. My main focus was on the decline
in sales of Haleeb milk. Haleeb milk was the market leader in dairy industry. But suddenly it lost
its position and disappears from the market. I tried to uncover the major causes of decline in
sales of Haleeb milk. I also point out problems which are faced by Haleeb in different areas. I
collected views of stakeholders. This information will be really useful for the improvement of
Haleeb milk.
On the basis of collected data I brought analysis in my report. This analysis shows the real
picture of the market. This analysis also presents the competitors position in the dairy industry. If
a company wants to become a leader of the market then the management needs to know about
their competitors in the market. At the end of my report I included solutions which are also
known to be recommendations and suggestions. I strongly believe that the management of
Haleeb should implement my recommendations and suggestions for the survival of the Haleeb
milk.

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Recommendations/Suggestions
As the product is in the maturity stage according to the products life cycle where the company
and the product are Ill-known and Ill-established, hence the company should in order to maintain
and add to its market share, keep on coming up with incremental changes in the product and keep
on coming up with some promotional activities that would remind the consumer of the presence
of their product.
According to the review that I conducted I came to know that Haleeb had not been doing
advertisement in the recent times and for that reason they are in sort of losing their position in the
mind of the consumers that they had previously, so as a result they should come up with some
frequent advertisement campaigns
As Haleeb Foods has been serving its customers from 25 years and are the pioneers of the UHT
Milk concept in Pakistan and an ISO certified company as Ill, so they have got a very strong
character in the development of the country so as a result they should come up with some
campaigns that would help promote milk brands. The campaigns are as follows:

Why Haleeb is the thickest, Campaign

Health and Nutrition Awareness, Campaign

Haleeb Foods can come up with more activities that would involve personal selling activities that
can take place at Sunday Bazaars where the company can set up its stalls for selling
There are return policies at Haleeb Foods which are clearly defined but the problem that I found
from the distributor side was that they are very slow to give the replacement of the expired
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products. According to them this process pinches them a lot because its wastes their time and
blocks their investments as Ill.
Distributors are the eyes and ears of such organization as Haleeb, as they themselves are not in
touch with the retailers and the end consumer so the feedback can not come from them and this is
a must ingredient of successful and corrective action. So Haleeb should re think on its policy
with its relations with the distributors.
Neat and clean decorated vans should be used for the delivery of the products; such an action
will work as moving advertisement of the company and will help in brand awareness as Ill. Such
an action is currently being done by various other industries in the market and it leaves a very
good impact on the consumers with such high quality flexible printing with attractive pictures for
the brand promotion.
Haleeb foods can come up with some special Incentives for a retailer that is they can facilitate
the retailer by giving them some financial benefit. As Haleeb foods has a portfolio of products
which are all from the dairy sector and are required by the retailer in order to keep the products
chilled. This will improve the placement of the product and will also work as a source of
promotion of the brand Haleeb as Ill in a better way.

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So the steps that should be taken are as follows:

Credit policy can be adopted to increase sales of the products.

The income level of the people is not that high or the favorable income level group is still
small so they should reduce the prices to attract customers.

They should minimize the prices and pay more attention on quality and marketing strategy
to regain the market share.

They should make a strong distribution system to provide to avail the full benefit of the
growing market. There is no check on the performance of the distributor, and this has led to
huge problems in the delivery of many products in some areas of the country.

Haleeb foods Ltd. should allocate a healthy budget for advertising its products, if it really
wants to compete at par with its direct competitors.

The activities like customer satisfaction survey should be performed on regular basis so the
company should know the feedback and satisfaction level of customers regarding the product
and the image of the company.

Haleeb should follow product development and related diversification strategy.

Positioning is the place where Haleeb has not been able to convey its message in an effective
way as their slogans have tend to show the target public is bored of their slogans, according
to their slogans Chai banae khoob Haleeb so Haleeb has to change its perception of milk
for tea only, as it is not taken as milk for general consumption, so it loses a large portion of
consumers in the packaged milk market.

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Promotional mix at Haleeb is not Ill integrated, they are not able to communicate the strength
and benefits of their products to the customer, and they need to come up with more
innovative and communicative promotional mix.

In recent campaign their tag line was Aik Garha Rishta Umer Bher k liye, which did not
sound that much touchy, to people.

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Beneficiaries

Students

The students of management sciences will get benefit from this research report.

Management of Haleeb Milk

I will also share a copy of this report with the research and development department of Haleeb
food. So they can read this and think about that where the flaw lies.

General Public

In future this report can also be helpful for the general public as Ill.

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Bibliography
Hassan, Kirmani, Shabbir (2008), Children Attitude Towards TV Advertisements in Pakistan,
Euro Journals Publishing, Inc.
http://www.eurojournals.com/ejsr.htm
Khan (2007), DAWN NEWS, Low production pushing up milk price,
M. Tariq,Mustafa, A. Iqbal and H. Nawaz (2008), Pak. J. Agri. Sci., Vol. 45(2),
M. Uotila ,S.B. Dhanapala (2009), Dairy development through cooperative structure
Ali (2001), Milk production and marketing by small and medium scale contract farmers,
6. B.H. Khan
Area Sales Manager
Haleeb Foods Limited
Contact # 0303-4448175

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Appendix
Interview Summary of Sales Manager
My group conducted an interview at Haleeb warehouse Rawalpindi. Interviewer was Mr. Bilal
Ahmed khan (Area sales Manager Haleeb foods). First I told him about my topic that is Why
the sales of Haleeb milk declined in Pakistani market. Then I asked different type of questions
related to my research. I discussed number of matters including Marketing issues, Distribution
Channels and Quality Problems.
I have raised different questions related to the my research topic Why the sales of Haleeb Milk
declined in Pakistani market; first of all he accepted my research question that Yes my sales
declined in last five years due to the slipup of the plant otherwise Haleeb is having the latest
technology used in the Dairy Industry. According to him it all happened steadily thats why they
are not able to locate it and it caused a lot of quality problems. In an answer to a question he
said that there is no such problem in the Human Resource Department of Haleeb and my
management is working smoothly and progressively. Then I asked about the packaging of Haleeb
Milk he said that There is no need to revise the packaging policy because recently I have
launched Haleeb Milk with new packing.
In ansIr to my question regarding Advertising of Haleeb Milk the Area Sales Manager replied
that if a company launches new product or service then there is a need to inform the customer
through heavy advertisement. Haleeb milk has ruled the market for decades so the advertising
policy does not mean to be implemented again. According to him the distribution channel of
Haleeb is sufficient enough to cover the market demand. He said that the quality issue just
shattered the trust of the customer so I stopped the production of Haleeb milk but recently in mid
of 2009 I retargeted the market with new Packaging and improved Quality.
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Questionnaire
Why did the sales of Haleeb milk decline in Pakistani Market?
I am a student of MBA from Northern University and I am doing a Research on Haleeb Milk as a
part of my studies. Your cooperation will be helpful in completing my degree. I assure you that
all the information given by you will be kept confidential and will be used for the completion of
my degree only.
Name --------------------------------Gender-------------------------------Profession---------------------------1) Which milk do you prefer to buy?
a) Tetra Pack b) Open Milk c) Powder Milk
2) How often do you use milk?
a) Every Day b) 3-4 times a Iak c) once a month
3) Do you use Haleeb Milk?
a) Yes

b) No

4) Which size you mostly purchase?


a) litter b) litter c) 1 litter
5) How much you spend each time for buying milk?

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a) Rs 10-15

b) Rs 15-20

c) Rs 20-40

d) Rs 40-100

6) Which milk brand do you normally purchase?


a) Milk Pak b) Haleeb c) Every day d) Tarang e) Olpers
7) How dose the advertisement for Haleeb milk products compare to other milk products?
a) Better b) seems poorer
8) Please rate the level of your favorite milk brand?
a) Milk Pak
b) Haleeb
c) Every day
d) Tarang
e) Olpers

Worst
Worst
Worst
Worst
Worst

Good
Good
Good
Good
Good

best
best
best
best
best

9) Please rate the following factors which influence you in choosing your favorite brand?
a) Price b) Taste & Quality c)Advertisement d) Brand e)Packaging
10) From where do you normally buy milk?
a) Retail Shops b) Super stores c) Bakery d) others
11) How do you rate the comparative quality of Haleeb milk?
a) Poor b) Normal c) Good d) Excellent
12) What are the major factors involved in purchasing milk products?
a) Quality b) Availability c) Price d) Advertisement
13) Which milk is good for tea?
a) Haleeb b)Fresh Milk c)Powder Milk

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14) Who is the main competitor of Haleeb Milk?


a) Milk pack b) Olpers c) Good milk d) Tarang

e) others

15) Are you satisfied with the packing material of Haleeb?


a) Yes

b) No

16) Do you use milk for any of the following for any of the following?
a) Tea b) Health c) Any other
17) What improvements would you like to see in Haleeb milk?
a) New Flavors b) Low Pricing c) Improvements in Quality
Others ..

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