Professional Documents
Culture Documents
Home
Assignments
Projects
Internship Reports
10
Jul
Internship Report on Rafhan Best Foods
by Commerce Solutions in Internship Report, Rafhan Best Foods
INTRODUCTION
Rafhan Best foods Limited are an affiliate of Bestfoods, USA. One of the largest US food
companies, with a worldwide sale of US $ 8.64 billion in 2000 and an operating income
of US $ 1.33 billion. Bestfoods has operation in more than 60 countries and products
marketed in more than 110 countries around the world.
Rafhan Bestfoods Limited, formerly consumer business of CPC Rafhan Limited, came
into decision of the parent company in USA to spin off its corn refining business and
rename consumer business as Bestfoods.
Rafhan Bestfoods Limited has brought high quality, great tasting and convenient foods to
Pakistan that is enjoyed around the world. The seven trusted brands in the diverse
product portfolio are.
Rafhan: Custard, Jelly, Pudding, Ice-Cream Powder, Kheer Mix, Corn Flour, Glucose-D,
Jams, Corn, Canola and Sunflower Oils.
Knorr: Cubes, Yakhni, Soups, Noodles and Ketchup.
Energile: Flavoured Drinks and Fiesta for Children.
Bestfoods: Mayonnaise and Sandwich Spreads.
Skippy: Ready-to-eat Jelly.
Glaxose-D: Fortified glucose drinks
Cater Plan: Special range of products for hotels, restaurants and caterers.
Rafhan Bestfoods Limited has acquired Glaxose-D business from Glaxo Wellcome
Pakistan Limited with his acquisition Rafhan Bestfoods now has a major share of dextrose
market.
before one year liver brother took the possession of best food though which it becomes
refhanbestfood (unilevercompany).Its head office is in Lahore they maintain their
accounts in two prime foreign banks of Pakistan.
Amn-amro bank
Citibank
But there key account is in abn amro Pakistan.
COMPANY INFORMATION;
BOARD OF DIRECTOR;
Ms. Mushraf Hai (Chairman)
Mr. Sikandar Nawaz Tiwana(chirf executive)
Mr. Robert Zoon.
Mr. Agha Jamshed.
Mr. Julian Frost.
Mr. E.A.Nomani.
Mian Nisar Ahmed Mannoo.
Mian M.Adil Manno.
Mian Zulfikar H. Manoo.
Mr.M.Yousuf Malik.
Auditors; Ford,Rhodes,Maorrow.
Charted Accountants.
Leagal Advisor; Surridge$Beecho
Registered Office ; 52K.M,Lahore-Multan Road.
Pernawan,Bhai Pheru.
Lahore,Pakistan.
Head Office and Shahpur Interchange
Shares Department; 14-KM, Multan Road
Lahore,Pakistan
History
and
present status
HISTORY OF COMPANY
Rafhan Maize Products Co. Ltd. started its operations in 1952 as a pioneer maize
processing industry in Pakistan.
Haji Muhammad Shafi (Late) was the founder of the company. Haji Muhammad Shafi
was an innovative person. He derived the company name (Rafhan) very tactfully from his
three sons.
The names of his sons are:
Muhammad Rafi
Muhammad Hanif
Muhammad Nisar
. Rafi
Hanif
Nisar
Raf
Ha
N
Rafhan
In 1952 the company was established on very small scale.at that time it was involved in
manufacturing of corn product only.during there work mr shafi researched that the
demand of starch will increase in the future.because of no rapid preparation of starch at
that time.so mr haji sharif decided to to produce starch from corn.Fhot these reason he
decided to import machinery from abroad.and decided to sell its 50% shares to any big
company.So an American firm called cpc took 50% shares of refhan.and in 1998 best
foods took the possassion of the refhan due to which it become refhan best foods.and in
2000 best best is hand over to leverbrothers.due to which it become refhan best
foos(unilever company).
in this way, the popular name of Rafhan is invented. Today brand name Rafhan is very
popular among people.
Overall history
1952 company started operation as the first major corn processor in the country.
1962 refhan became affiliated with cpc international.cpc acquired 51%equity.
1963 corn oil refinery commissioned.
1976 consumer marketing division formed.
1985 started using Rafhan as umbrella a brand for consumer products.
1987 rafhan listed as pubic limited company with 18.5% of equity sold to public.cpc
continues to retain 51%equity.
1990 purchased land for new consumer factory.
1991 set up independent consumer food division.
1992 lunch of first core brand products,knorrbouillion cubes and bag soups.
1992 inaugration of perna plant.
1998 independent consumer products company under new name Rafhan Bestfoods ltd.
1999 purchase of Glaxose_D business.
2000 take over by lever brothers LTD.
KARACHI, Oct 3: While the last month's market rumour of Lever Brothers Pakistan's
'firm bid' to takeover Tapal Tea, may have after all turned out to be phony, the giant tea
to personal products producer is yet again in the news.
A copy of a joint press release issued to the three stock exchanges, by Lever Brothers
Pakistan and Rafhan Best Foods Limited on Tuesday, confirmed that the agreement for
merger of Bestfoods with Unilever had been approved by the shareholders of both
companies on October 2, after clearance from the regulatory authorities in US and EU.
"An eventual merger in Pakistan", the statement said, "will be subject to the approval of
the directors and shareholders of both the companies and of the Court".
During the day's trading at Karachi Stock Exchange, the 50- rupee share in Lever Brothers
Pakistan, shed Rs22.75 to close at Rs952.25. Around 3,140 shares changed hands with the
stock hitting the day's lowest and highest at Rs951 and Rs981.
The 10-rupee share in Rafhan Bestfoods did not react and closed Tuesday at the long-held
price of Rs248.10.
The joint press note went on to state that the merger (of the two parent companies) had
gone to create a global food and consumer goods company with a portfolio of powerful
worldwide and regional brands with strong growth prospects. It reproduced the words of
Patrick Cescau, the new Director Foods business in Unilever, who said: "Our goal is to
build a truly new company-one that is even better than and different from either of the
two great partners as they are today. This is not just a merger. It's a true transformation.
And the result will be the pre-eminent food company of the world".
The press release said that the chiefs of the two local subsidiaries: Delpon de Vaux,
chairman & CEO of Lever brothers Pakistan and Suleman Daud, MD & CEO of Rafhan
Bestfoods had stated in a joint communique: "The subsidiaries of both companies in
Pakistan will continue operating with the same commitment to serve their customers and
meet the expectations of their shareholders".
The two bosses were stated to have expressed confidence that both companies would
bring together 'tremendous management resources', capable of realising the growth and
synergy opportunities presented by the merger of the two parent companies. "There will
be no immediate changes in their relationship with their respective business partners,
suppliers, distributors and trade", the two heads were stated to have emphasized.
Lipton and Brooke Bond have together provided Lever Pakistan the leadership in the
Pakistan tea market with 45 per cent share. Earlier, Lever had taken into its fold the
'Polka', which added to its own 'Walls', has established the company firmly in the ice-
cream business. The Rafhan Bestfoods, created on April 3, 1998, following the spin off of
the consumer business by CFC Rafhan Limited, stands out as one of strongest among the
22 listed companies on the food & allied sector of the stock exchange.
With the ultimate merger with Rafhan, Lever Pakistan would not only add to its portfolio
the half a dozen popular food products including the Knorr range of items, but also the
blue-chip, Glucose-D.
Early this year, Rafhan had bought over the ailing ghee-cooking oil-soap producing
company: Kakakhel Industries Limited. With hindsight, it becomes easier to understand
now why Rafhan, which had nothing to do with ghee-cooking oil and soap should have
decided to take over the unit and make an effort to revive the operations; Lever's expertize
in the areas, perhaps, were foreseen to prove valuable asset. Or is that just a co-incidence?
missions ;
we are the leading consumer products company in the Pakistan,a multinational with
deep roots in the country.
We attract and develop highly talented people who are exitited.empowered and
commited to deliver double-digit growth.
We server the everyday needs of all consumers everywhere for foods ,hygience and
beauty through branded products and services that deliver the best quality and value.
We strive to remain an ever simple and enterprising business.
We use our superior consumer understanding to produce breakthrough innovation in
brands and channel.
Our brands capture the hearts of consumers through outstanding communication.
Through managing a responsive supply chain, we maximize value from supplier to
customers.
We are exemplary through our commitment to business ethics,safty,health,envirnment
and involvement in the community.
Codes of business/vision.
Standard of conduct.
We conduct our operation with honesty,integrity and openness, and with respect for the
human rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we have
relationships.
Obeying the law.
Unilever companies and employees are required to comply with the laws and regulations
of the countries in which we operate.
Empolyess.
Unilever is commited to diversity in a working environment where there is mutual trust
and respect and where everyone feels responsible for the performance and reputation of
our company.
We will recruit,employ and promote employess on the sole basis og the qualification and
abilities needed for the work to be performed.
We are committed to safe and healthy working conditions for all employees.we will not
use any form of forced,compulsory or child labour.
We are committed to working with employees to develop and enhance each individuals
skills and capabilities.
We respect the diginity of the individual and the right of employees to freedom of
association.
We will maintain good communications with employees through company based
information and consulation procedures.
Consumers.
Unilever is committed to providing branded products and services which consistently
offer value in terms of price and quality,and which are safe for their intended use.products
and services will be accurately and properly ladelled,advertised and communicated.
Shareholders.
Unilever will conduct its operation in accordance with internationally accepted principles
of good corporate goverance.we will provide timely.regular and reliable information on
our activities,structure,financialsitution and performance to all shareholders.
Business partners.
Unilever is commited to establish mutually beneficial relations with our
supplier,consumer and business partners.
In our business dealings we expect our partners to adhere to business principles
consistent with our own.
Community involvement.
Unilever strives to be trusted corporate citizen and as an integral part od society,tofulfill
our responsibilities to the societies and communities in which we operatePublic
activities.Unilever companies are encouraged to promote and defend their legtimate
business interests.
Unilever will co-operate with governments and other organizations,both directly and
through bodies such as trade associations in the development of proposed legislation and
other regulation which may affect legitimate business interests.
Unilever neither supports political parties nor contributes to the funds of groups whose
activities are calculated to promote party interests.The environment.Unilever is
commited to making continusus improvements in the management of our environmental
impact and to the longer term gola od developing a sustainable business.unolever will
work in partnership with the others to promote environmental care,increase
understanding og environmental issues and diddeminate good practice.Innovation.In
our scientific innovation to meet consumer needs we will respect the concerns of our
consumers and of society.we will work on the basis of sound science.applying rigorous
standars of products safety.Competition.
Unilever believes in vigorous yet fair competition and supports the development of
appropriate competition laws.unilever companies and employees will conduct their
operations in accordance with the principles og fair competition and all applicable
regulations.
Business integrity.Unilever does not give or receive,whether directly or indirectly
,bribes or other improper advantages for business or financial gain.no employee may
offer.give or receive any gift or payment which is,or may be construed as being,a bribe.any
demand for,or offer of,a bribe must be rejected immediately and reported to
management.Conflicts of interests.All unilever employes are expected to avoid
personal activities and financial interests which could conflict with their responsibilities
to the company
Unilever employees must not seek gain for themselves or through misuse of their
positions.
Future prospects;
At present as we all know is that our beloved country in under pressur .But still there is a
path to growth wèich will be the path of refhan best foods.actually what the lever brother
believes is that there is lout of potential at this particular region of asia.which the y want
to get.and they are getting it with there great leader qualities.what they only need to focus
only is to mechanize there distribution activity.and they are working on it,by adopting
this by the time they will maitain a healthy business growth in the future INSHAALLAH.
Part two
Organizational charts;
Part 2
Major Policies.
best foods policies gives us a path to remain toward our destinationand on moral.here
there are some policies of Bestfoods.
Our company policy is to provide best quality foods.which not only attract our customer
but also fulfills the leagal requirements of government.
Our company policy is to provide our employess such an envirnment which
He lpls them to get perfaction and experience on their particular field.so that they can
better fullfil there obligations.We also a have training programe for developing our
employees technical skills.
To develop such an envirnment through which our employees can have self
confidence,moral values.
We do our level best to work in accordance with the law and order.
What we try is to create awearness among the people about the company performance
through public channel.
Company expect from his employ to work ethicly.and not to involve in any such activity
which effect the company performance.
Employees should not have financial binding with supplier and competitors.
Employees should not try to shift business secrets to any other.
Employees should not try to use company asset for the their own benefits.
It is the policy of the company to comply with all laws and regulations applicable to its
operations.as such laws and reglation are authoritatively interpreted and administered.
Its is in the company interest to communicate in a forthright and accurate manner with
its stockholders,employees,and other interested public and private groups and
institutions,and that it respond to valid requests for increased public disclosure or use of
company information,including improper trading in the company stock,is prohibited.
It is the policy of the company to prevent unauthorized disclosure,or use for personal
gain or advantage,of trade secrets,confidential business information,or any other
significant undisclosed information concerning of the company.
The company expects its employees to observe the highest standards of business
ethics.They should not engage in any activity which would either conflict or interfere with
the performance of their company responsibilities.Any investment,outside interest,or
other activity that may appear to present such a comflict,either directly or indirectly
through family members or others,should be avoided unless an exception is
authorized,after full written disclosure of the facts,through normal administrative
cchannels or by the corporate general auditor.
Employees who purchase or have any influence on the purchase of commodities may
not engage in personal investment or speculation in any commodity futures.
Employees may not act as director,officer,partner,employee,agent or cconsult for a
supplier,customer,or competitor.
Relationships with customers,consumers,suppliers,competitors,;abor
organization,and governmental bodies and official are to be based on fair dealing on fair
competition in qulity,price and service,and on complience with applicable laws and
regulations.the giving of gifts.loans.or favors in an effort to sell products or services or to
influence business.labor,or governmental decisions is prohibited.
It is a violation od US laws for the company to make any contribution to candidated for
federal elective office.similar prohibitions or regulation of political contributions may
exist in other countries and in state laws in the US.Therefore.any contribution by the
company directly or indirectly to any political party,political committee,or candidate for
public office (including the establishment of a political action committee,or the purchase
of tickets for banquets and other social events) .
The principles in this policy statement are to be observed regardless of the form of the
transaction.
The term gifts,laon.favor,and contribution are used in the broadest sense.They apply to a
transmission of,or any express or implied promise to transmit,anything of
value,regardless of form,whether in money,property,ot services,including the use of
facilities or personnel.
The company must maintain books,records, and accounts which is in reasonable
detail,accurately and fairly all its transactions and activities.
No transaction is to be authorized or entered into with the intent that it shall be
documented or recorded in a deceptive manner, nor is any false or artificial
documentation or book entry to be made or ordered to be made for any
transaction.similarly all funds , asets and transactions must be recorded on the
appropriate books.
For policies they make surveys first,unilever also gives suggestions.Executive committee
also plays his role in all policies.
Meeting are very frequent here usually monthly.But it can be 3 or 4 depemd upon the
sitution.but what I saw here is meeting are very long.and everyone plays his role.
6 35 11
PDP(performance development plan)
PEP(performance evaluation plan )
These are the two form through which performance of officier are judged and assessed.All
the promotions are progreed through these form.These two tools helps in making career
ladder also .which is six monthly.
Here the evalutuon method is 360degree based.
Your peer bosss subordinates all make youe evalution
Here there is a open door policy.people feel free to talk with even M.D.and the
management styles here is democratic
Employees benefits&advantages;
This department is also called the backbone of the any company.because the success of
any business is depend upon it.The reason is that the employees benefits is related with
this department.All the recruitment is to be done by this department.
Training.recruitment,selection,and compensation are the main function performed by
this particular department.
Training&development;
Employees Benefits$Advantages;
Benefits are the rewards which are given to employees in the response of there good
performance.it is being analyzed that employees productivity is directly related to benefits
.if a firm wants to motivate their employees a good number of benefits should be given to
them.Refhan best foods by having in view this strategy are giving quite a reasonable
number of advantages to their permanent employees.some of these are given below.
Conveyance Allowance;
Special facility is given to the ladies staff for the pick and drop daily and in a emergency
wheneer needed.cconveyance allance is also given to the employees that is 300 per
month.There is also the facility of patrolling.which is 4rs per Km.
Over time;
The cost of living allowance of rs350 per month os added in employees pay.the over time
is paid to the employees as .
Cola+18%+house rent+conveyance allowance.
Shift Allowance;
Shift allowance is fiven accordingly to the basic pay.However evening shift allowance is
rs10.and the night shift allowance is rs20.
Group insurance;
The company in case of death of employees will pay rs 10000 on mercy ground to the
deceased family in addition to the compensation paid by the insurance company against
insurance.
Hajj;
Company also send its employees for hajj.The decision of the employees to be send is done
by having a draw in formal gathering.
House rent Allowance;
The company pays house rent allowance to its permanents employees from 80% to 85%
of their basic salary inclusive of the cost of living allowance of 505and 18%increase in
wages on account of the rise in cost of living.
Leaves;
Gratuity;
The company has established its own gratuity policy/fund for the purpose of financial
assistance to be paid on retirement.Permanent workets,office and mill staff subject to the
conditions laid down in company gratuity policy,This payment of gratuity is not statutory
as written under (standing order)ordinance in 1968.The company has established
procident fund under Pakistan industrial and commercial employees (standing
orders)ordinance 1968 and all employees are its members.
The gratuity establish by the company would be admissible on completion of continous
ten years of service also upon resination instead of completion of twenty fice years of
service.However,the gratuity would not be payable in case of dismissal upon misconduct
in case service is less than twenty-five years.
All payment workmen,office and mills staff including all those cavered under EOBI shall
continuee to remain 58 years.This applies to all permanent employees covered and
benefited under this settlement.
The retirement age of workmen and employees is 60 years except those who are found
medically or physically unfit to perform their respective duties.The company shall have
the right to refer such cases to company medical officer appointed within the company in
the Rafhan dispensary and in case of his opinion that employee can not perform his duty
due to sickness or physical weakness.The company shall have the right to retire such
employee on attaining the age of 59 years.The oponion of the company medical officer
shall be final and can not be challenged at any forum.
Funeral Expenses;
A company will pay rs 1500 to window of deceased employee for funeral expenses.More
amount can also be granted from welfare fund.
Uniforms;
Employees in the following areas will be provided three uniforms per annum instead of
two uniforms.They would also be entitled to shoes as being provided to
attendants,drives,and operators at’
Glucose refinery, Special Glucose, Dryers,Dextine, Engineering, BoilerHouseOperators,
Expeller House.Oil Rfinery, SoapSection, SpecialStarch, storeHelpers,
ProjectStoreHelpers, Warehouse,BardanaWorkers, Maize Production Workers (already
being provided) Mali and Helpers.
Marriage Allowances;
The company pays to the employee rs 3000/ upon marriage under the existing policy.it
is also agreed to accept seven double cases instead of six per calender year basis under
this fund.the left over double cases can be carried forward in the next year.in case of an
employee is left out of the double cases during a calender year due to the completion of
double cases,he will have the right to apply out of the quota of next year.
Education Scholarships;
The company give scholarship to 40 children of the permanent employees of the company
which will be allowed under the existing rules. The company has also agreed to increase
rs 50 per month in each category of scholarship.
For those employees who are not covered under the workers children education cess
ordinance 1972.The company will pay monetary assistance to one child of such emplyee
studying up to metric subject to the fulfillment of same conditions as laid down under the
workers children education cess ordinance.The monetary assistance to the employees
child will be given equivalent to the amount being paid to an employee covered under the
children education cess ordinance
Part Three
Administrative/management styles;
By section.
There are 2 section,
1 head office.
2 Plant.
Plant related administration is only up to plant.plant administration administer only the
plant.and headoffice administer only the head office.HRM deals with both plant and head
office.here in headoffice peoples are very well disipline.So there is no chane of strike or
dispute in head offi ce.Same is the case with the plant.
Here both in headoffice and in plant administrator are very strick by the rules and
regulation.Otherwise the here is very friendly.prople fell free to talk with each other.here
the administrative style is democratic not the autocratic.
Administration styles has his impact on the people here.but senior executive here have a
combine type of attitude.at the time of closing they are really strict.but at begning little
relax.
But when you talk about the styles on the morale of the people.then you can take the
example of this that
After its merger with the lever brother.people are very much frustrated about their
future.they are very much cautious that what will be happened in the future with respect
to their jobs.and all these things are really effecting the efficiency of the people
performance.the is the one vview of the picture but on the other there are a bundle of
incentives like hajj ticket,allowances,really incouraged the employee to show there
best.and they are showing their best here.because all these activities incouraged the
people.here the working envirnment is very friendly mess and tea was the two thing which
I am really missing.there is no question that when you provide all these facilities then the
moral of employees will automatically rise
ISSUE OF STATIONERY
All stationery is issued by the administration department to various departments of the
company. It also maintains the record of such stationery. Administration department
prepares reports about the issuance of stationery on monthly basis.
MAINTENANCE OF BUILDING
Part four;
TPM,(mission)
Zero accident.
zero breakdown.
Zero defects.
Zero wastages.
Product quality beter then competitor.
5 s,
Sort.
Set location.
Shine rise.
Stand rise.
Sustain.
Basis of dextrose,
Through dextrose they made.
Gloxose_D of different flovour.
Energile of different flovour.
Production facilities;
‘
Access To Raw Material;
Access to raw material some times causes a problem at plant is situtated far from supplier
in the city but for some products such as skippy jelly they import raw material from
abroad.So in some cases they have to face problem.other wise it is really at the right place.
Layout Equipment;
Plant layout in the integrating phase of a production system.The machines for
manufacturing cubes,soups,tamato,ketchup and energile are laying on second story of the
building.There are not very big machines and also supported by automatic packing
machines.
Plant Maintenance;
Maintenance is the physical change or activity that is essential for economical running of
the equipment.At Rafhans plant a maintenance department is working consisting of two
engineers with six assistants.The department looks after the machines of the plant.
The plant is very sensitive to the issue of quality and hygiene.The company believes that
As this plant covers a large area of land so there is a place for car parking of office staff
and visitors too.This really facilitate the workers to work safely.Beacause there they don’t
have to worry about the there cars.they have a complete check system for all the cars.
Work Force;
Low class labour is easily available there .They can easily be hired from that area.where
as staff and upper level management go from Lahore on regular basis.
Transportation;
Company has its own transportation system,Staff get picked and dropped from the main
head office.This pick and drop facility really facilitates the employees.due to all these
measures they show their best.
Health Facilities;
Company has a special contract with the social security hospital.Who provide specialist
doctor with ambulance in case of emergency.they are really carefull about the health
facilities.because there worker are there assets.which they don’t want to lose.
Housing facilities;
This particular company don’t offer housing facility itself./but for the compensation of
this offer house rent allowence.so that they can have a beteer facilities of life.
They use highly sophisticated technology.With the use of it Rafhan has increased its
productivity and reduced its labour cost.
In the second story of plant at some places roof transparent is use.The sun-light illuminate
the hall during the day time.It saves a fairly good amount of electricity.through this they
save allout.
Adequency Of Circulation;
The movement of transportation to and from factory is very easy and do not cause any
problem.There is also an emergency access to fire alarm,fire-fighting equipment and
ambulance for the safety of lives.
Lightning;
There is a good arrangement for the ightning system within plant.however in the case of
failure ,high power generators get started.That is for the continious production process.
B
5.1 RAND MARK
Rafhan’s brand mark varies from brand to brand or product to product. Like type of
lettering and colour of Rafhan, Knorr, Energile etc.
5.2 TRADE MARK
Rafhan has registered trademark of all its brands like Energile, Glaxose-D, Knorr, and
Bestfoods etc.
Part five;
Pricing strategy
Distribution strategy.
Brand strategy.
Promotion strategy.
4. MARKETING STRATEGY
4.1 Marketing budget:
15% of total sales.
4.2 Decision making authority in marketing department.
At Rafhan marketing executives, brand managers are all take active part in decision
making however the final decision making lies with the departmental head i.e. marketing
manage (Mr. Mubashir).
MARKETING MIX
4 P’s of Rafhan Bestfoods Limited.
Product
The product of Rafhan includes consumer food products, e.g., Custard, Jelly, Cooking Oil,
Dextrose Foods, Noodles, Mayonnaise etc.
Price
The product’s price vary from product to product. Some popular product’s prices are as
follows.
Place
Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore – Pakistan.
Placement / Promotion
They place their products in local as well as in foreign market. They export directly and
indirectly.
Export Directly Central Asian Countries.
Export Indirectly USA, UAE.
Rafhan promote their products through media, and other trade incentives to distributors
and wholesalers.
(Source: Marketing Manager)
5. MARKET SEGMENTATION
The management of a company has differentiated its product through its prestigious
brand name as compare to other local companies.
It launched uniform and standardized product therefore, there is no need for market
segmentation because the wants and other characteristics (i.e. geographic, demographic
and buying behaviour) of their target market are somewhat similar.
5.3 TARGET MARKET OF RAFHAN
Rafhan has adopted the strategy of market aggregation. It views its target market as a
single unit i.e. one mass marketing strategy for its product line of foods. Rafhan’s target
market includes Middle Class, Upper Middle Class and Upper Classes of the population
of Pakistan.
5.4 MARKETING RESEARCH
Infact there is no separate department for marketing research. The marketing executives
are responsible for the research work. Every executive have assigned one brand, for the
purpose of research and is responsible to report their research work about any
modification of their respective product.
5% of marketing budget.
6. MARKET SHARE
In Dextrose Foods and in custard they have major share in the market and its pie is
growing @ 10% per annum
7. MARKETING POSITIONING
Rafhan is considered to be a trusted and premium brand because of its unique health
association Rafhan is positioning their product in the best of their customer health which
also differentiate from their competitors. Over the last 38 years, Rafhan corn oil gained
increasing consumer preference as a result of high and consistent quality meeting the
international standards.
In 1998 two new oils, canola and sunflower were introduced in the 100% pure oil segment,
which further strengthened brand positioning and broadened its consumer base. The
company has recently launched Rafhan Corn Oil 10 liter economy can and 1 liter
affordable pouch to cater to the needs of various income house holds.
Rafhan Corn Oil consumers are enjoying the concept of health cooking oil that was
introduced in the country by Rafhan.
(Source: Marketing Department)
8. BRANDING STRATEGIES
Marketing entire out put under producer brands. Rafhan is marketing all of its products
under its own brand name.
8.1 BRAND NAME
Rafhan popular brands includes:
Rafhan
Energile
Knorr
Bestfoods
Skippy
Cater Plan
Glaxose – D.
8.2 BRAND EQUITY
Rafhan’s products image building features includes:
Colour
Rafhan colour by itself is a selling advantage. For the sake of variety they have full
coloured products.
Quality
Rafhan maintains the high standards of quality of its products for the entire target market,
which creates a strong image in the consumer’s mind.
Warranty
It is the policy of the company that it replaces the products damaged due to manufacturing
or quality fault whenever claimed.
8.3 SLOGANS / LOGOS
“Satisfying a Global Appetite” is the international slogan of the Rafhan Bestfoods. Other
includes:
Energile The energy drink.
Knorr Life can be so delicious.
Rafhan Oil No oil is better than Rafhan Corn Oil, Canola Oil and Sunflower Oil. A part
of your diet.
8.4 PACKAGING
In Rafhan packaging the product line is done according to the product nature. In order to
have attractive and impressive packaging, company uses the services of various packaging
agencies such as Packages and Saima Packages. For the benefit of the consumers, care
instructions are also given on the package. e.g. not for oven use and shelf life of a
particular product etc. Rafhan also uses multiple packaging strategy for its product like
Knorr Chicken Cubes, Energile Ras Bhara, Knorr Instant Yakhni etc.
(Source: Marketing Department)
Rafhan uses
Carton Packs
Soup Packets
Dressing Bottles
Oil Tins
Jelly Cups
Energile Sachet Packs
8.5 LABELING
Rafhan is using two types of labels:
Brand label
Descriptive label (bread spreads, yakhni, corn oil, energile etc.)
9. PRICING STRATEGY
PRICING OBJECTIVES
Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
Rafhan prices its product to achieve a certain percentage of return on its investment. The
base of pricing is the time consumed in the production process and target revenue per
day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15 on 5kg
of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market. They
have fixed prices products due to the reliability of consumers towards price. Prices are
decided keeping in view the prices of other products of same size, category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.
(Source: Sales Department)
products
best foodsproduct;
product is what is perceived to be.Thus a product is more than something with physical
characteristics.In a very narrow sense.a product is set of tangible physical assembled in
an identifiable form.A border interpretation each brand as a seprate product.
Rafhan best food LTD has a wide range of its product.Rafhan best foods conduct a regular
research and surveys on the changing habits of the taste of the customer.Results are then
given to special research and developent department and accordingly new product are
lounged and even alternations in the existing products are doneTheir policies are usually
between innovarive and initiative caregories of new products developments
This company has a unique product and a no of product. And here are the some details
for them.
Source.(Philip Kottler)
KNORR,Knorr is a well known product all over the world.it has its market in almost in
100 countries.it is not only it’s the world leader in soups and cubes.
Knorr was introduced in Pakistan in September 1992.with its first product knorr chicken
cubes.which is made from the real chicken gained wide acceptance among housewives for
the prepartion of savoury dishes.Normal,Routine dishes matte by house wives were no
longer boring.knorr chicken cubes when added in daal vegetables gave these dishes a
distinct chicken flavour .
Since then there is no looking back.knorr has successfully expanded its product line
catering to the needs of Pakistani consumers.In 1993 knorr soups and instant noodles
were launched which became an instant hit among housewives and children.Instant
yakhni was the next product from knorr that captured the imagination of Pakistani
consumers in 1995.knorr instant yakhni is a broth made from real chacken that gives
instant energy along with great taste.
In 1998,knorr pulao cubes were introduces providing the traditional tasting pulao.it offers
a convenient alternative to pulao yakhni because it is made of real chicken and the right
blend od spices and herbs .With knorr pulao cubes house wives prepare rich,authentics
and traditional tasting pulao.
In the same year knorr enteres the sauces category with real tamato ketchup.In 1999
chilli0garlic sauces was added to knorr sauce product line making it s hot favourite among
young and old alike.The latest addition to the knorr family is the convenient 2-serving
soup which helped the product line to reach down.
MakingMade from real tomatoes,knorr tamatto ketchup is a dip which has a spicy,tangy
tamato taste.
Ingredients
Tamato puree,suger.salt,vingar,maize,starch,spices,onion powder garlic powder,xanthan
gum,citric acid,permitted food colours,preservatives.
usage
to be used as a dip with snacks for enhancing taste.consumer benefits.The only ketcup
made with real,fresh,juicy tangy tomatoes,
Shelf life12 month
Knorr Noodles
Product Concept.
A tasty and filling noodles snack which can be prepared within minutes,at any time .
Ingredients,
Noodle cake.wheath flour,natural vdgetable oil,salt,sodium and potassium phosphate
and carbonates,permitted food colour,flavour mix,salt monosodium
glutamate,sucrose,maize starch,chcken fat,yeast extract powder,ginger flakes,soya sauce
powder,artificial chicken flavour,spices,citric acid,sodium inosinare and guanylate and
green vegetables.
Usage,
Taken as a snack or meal at any time.
Shelf life,
12 month
Knorr Yakhni,
Packing,
4Gms into 1152 sachets into case.
Product Concept,
Real chicken yakhni in powder form.just add boiling water.
Ingredients,
Refined salt,modified maize starch,mosnosodiom glutamate,sucrose,hydrogenated
vegetable fat,artificial chicken flavour,chicken fat ,chicken meat, inosinate and
guanylate,citric acid,spices,parsely and permitted food colours.
Usage,
Tasty,nutritional hot drink,consumer benefits.easy to prepare,delicious,all the goodness
of chicken,affordable price.
Shelf Life,
18 months
Knorr soups
Packing,
4 serving 12 pouches into 6 dispensers=1 case.
3 serving. 12 pouches into 12dispensers=1case.
Package Size,
48g (4serving ) chicken corn.
55g (4serving ) hot n sour.
43g (4 serving) chicken n ginger.
43g (4serving) chicken mushroom.
24g (2serving) chicken corn.
27.5g(2serving) hot n sour.
Packing.
20 Gms into 288 shells into case.
Ingredients,
Salt ,hydrogenated palm oil,mososodium glutamate.sugar chicken fat.chicken meat,yeast
extract powder,maize starch,artificial chicken favour,soya sauce powder,sodium
inosinate,guanylate,spices,citric acid.
Pulao cubes.
Packing.
20 Gms into 288 shells into case.
Product concept,Made from real chicken and the right blend of spices and herbs,knorr
pulao cubes bring the delicious taste,colour,aroma of traditional pulao to all the rice
dishes,
Dressings,
Sandwhich speads and mayonnaise are the well know products of the best foods.these are
the internationally recognized products.best food introduced it in 1996.best foods spreads
are a delicious blend of selective top grade eggs,vegetables and good quality oil.
These were introduced in 1998 .there are three variants in these ready to use sandwhich
spreads.chilli garlic spreads was first introduces by Rafhan best food cater to local tastes
and complement eating habits.
Sandwich Spreads,
Packing,
300 ML glass jar into case.
Product Concept,
Best foods sandwhich spreads are a delicious blend of selective top grade egg,vegetables
and good quality chicken that enhances the tastes of plain bread and sandwhich.
Ingredients,
Vegetable oil,whole eggs,sugar,chicken meat,bell pepper,carrots,salt,vinegar,citric
acid,xanthan gum,artificial flavour,preservatives and permitted food colours.
Usage,
With plain bread, in a sandwhiches.
Consumer benefits,
Ready to use ,excellent taste,convenience.
Product Concept,
A multi purpose creamy blend which makes salads ,spreads dips,sandwhiches and
burgers taste great,main ingredients,vegetables oil,whole eggs,sugar,vinegar,artificial
flavour and colours.
Consuner benefits,
Ready to use taste great and conevient.
Dextroxe.
Dextrose is an important contributor to the companys business.Energile and Glaxose_D
a
Are two major brands which over the years have successfully gained wide consumer
Acceptance because of their unique benefits.Energile is a unique drink which refreshes
brain and body available in five fruity flavours,enjoyes by all family members.The
energle franchise extends beyond urban cities to incluse rural areas also.
They have launched a new Energile rusbhara powder drink in 1999 which is more
refreshing than other one step preparation drink.It is available in three fruity
flavours,orange,pineapple and fruit punch,all packed in muli coloured aluminum foil
pouches giving attractive and fresh image.
Recentaly,Rafhan best foods has acquired Glaxose_D brand.With this acquisition Rafhan
best foods has now become a stong leader in the dextrose market.Glaxose_ D is well
established brand in Pakistan which offers instant energy during and after
illness.Toexpand the consumer base they have recently launched Glaxose_D
multivitamin.
Energile.
Main ingredients.
Top grade dextrose monohydrate.,table salt, natural fruit, sodium citrate tricalcium
phosphate
vitamin C, and permitted fioois colours.
Usage,
Dissolve 2-3 tables poons into water mix,mix well and drink.
Consumer benefits,
Refreshing taste. Instant.
Shelf life.
12 months.
Oil.
Refhan corl oil is one of the most ppopular brand of the Pakistan.it has a great market at
this partiucular region.people really prefer this brand to other brands.it gives total
satisfaction to its customer.it is so much poplur among the people because it meets all the
international standars of quality
In 1998 two new oiol.canota and sunflower introduced in the 100% pure oil
segment,which further strength brand positioning.company ha also made a lot of
modification in the size as well as in quality.like it has introduce 10 litre ecnomy pack.and
also a 1 litre pack.
.
Desserts.
In desserts we have quick sert jelly, custerd, pudding, kheer mix, and cream powder,
which is available in variety of sizes as well as in flavours.strawberry is a famous flavour
of the the jelly, while custerd is famous for his banana and vanilla.and in pudding we are
Rafhan desserts enjoy market leader status and continue maintain leadership through
high
quality products blended with innovative marketing and sales strategies.
Product.Jelly crystals
Packing.85 packet into 96 packet into case.
Product concept.
It is an exciting and east to prepare and have a delicious taste.
Main ingrediantsRafhan sugar, vegetable gum, adipic acid, potassium citrate, artificial
flavour,
potassium chloride, and foods colours,
Consumer benefits.
Easy to make ,easy to eat, taste great.
Shelf life.
9 months.
Kheer mix.
Product.Pudding mix.
Rafhan pudding is one of the best pdding of Pakistan.which is really popular aming
peoples of Pakistan.
Ingredients.Refined suger, vegetable gum, maiza starch, artificial flavour, and
permitted food colour.
Usage.It is cooked in a milik refrigerated and sewrved independently or in conjunction.
Withother desserts.
Consumer benefits.
Produce excellent quality, convenient to prepare, and easy to eat, Taste great.
Jams.Packing.
375 gms,glass bottle.
Caterplan is dept in rafhan best foods which delivers products in bulk.and it provides
its services to almost 60 countries.
Its aim is to provide rugt product at riffht place.it is famous for its highly quality.it
provies it supply tyo kfc,macdonads, pizza hut, dunkin donuts,
Because of its high deman it has achieve a hight growth.
Caterplan products.
]
25 rafhan corn flour. 1.5 kg into 6 box.
Oils corn&conola.
Places. Usages.
Price.
Here the firms has to consider many factors for determining the price.
Estimating costs.
Price is simply the cost plus profit of the firm.they have many competitiors in the
market.so they have considers about the competive price while selecting new price and
schemes.
PRICING STRATEGY
PRICING OBJECTIVES
Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
Rafhan prices its product to achieve a certain percentage of return on its investment. The
base of pricing is the time consumed in the production process and target revenue per
day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15 on 5kg
of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market. They
have fixed prices products due to the reliability of consumers towards price. Prices are
decided keeping in view the prices of other products of same size, category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.
(Source: Sales Department)
What we believes is
High price high quality.
Prices are set by taking into consideration into the prices of the competitors.
As there products are highly quality.so usually they charge high prices.
What they belive is.high price high quality.
There price are high.because they believes in zero defects.
They charge different prices to registerd and unregistered retailers.
There prices are fixed because there products are reliable.
Prices are set by taking into considertion the size,type of product.
Price discounts and Allowances.
Cash discounts.
A cash discount is a price reduction to buyers who pay their bills promptly.a typical
example is 2 /10 net 30. which means that payment is due within 30 days and that the
buyer can deduct 2 percent by paying the bill within 10 days.such discounts are customery
in nature.
Quality discounts.
A quantity discount ia price reduction to those who buy large volumes.This is given to
increase company sales.So that firm can have more revenues.
Functional discounts.
These are also called trade discount which are offerd by this particular firm.it will be given
to those who perform certain function.such as storing,selling book keeping.
Seasonal discounts.
A seasonal discount is a price reduction to buyer who buy merchandise out of season.they
offer different discount on springs and on summer.
Promotional pricing.
Warranties.
Rafhan best food is increasing its sales by adding a service warrenty.if there product will
spoil before the due date inspite of proper storage then they give proper warranties for
them.
These are some way of promotional pricing which are charge by the company.
Image pricing.
They chage high price of of there existing image of best food.and now with the merger the
levers brother.they tries to cash their name.
Place.
Place
Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore – Pakistan
This particular company has almost 1500 distributors out of which almost 900 are
active distributor and other600 are those toward which a company has a DR balance
This is something about the markets where the products of rafhan best fiood
prevails.through these market they sell there products.
Distributors..
DISTRIBUTION NETWORKS
LOGISTICS
They have their own M.T. Pool and they supply products at their own transport upto
Distributor’s wholesaler’s as per agreement.
NUMBER OF DISTRIBUTORS
They have 500 distribution all over the Pakistan, distributor’s are responsible to provide
product to wholesaler’s retailers and customers. They have fare price shops at their
factory/plants to provide products at ex-factory rates to their employees.
14.1 DISTRIBUTION STRATEGIES
Rafhan uses the following multiple channel of distribution.
Consumer
Retailer
Distributor
Company
Retailer
Consumer
Wholesaler
Company
ORDER PROCESSING
On receipt of order, head office prepares a delivery order and sends to factory, factory
office prepares delivery challan, one copy of the challan is sent along with the truck of
luggage. One copy of delivery challan is sent to head office. On the basis of delivery challan
invoice is prepared and sent to party by the head office.
MARK UP
It is a company policy; profit should not be less than 40%. They will give 2% extra
commission on company price on meeting their Dec. 2000 target through claims.
(Source : Marketing & Distribution)
promotion
ADVERTISING STRATEGY
MEDIA USED
Rafhan Bestfood Ltd. using radio, TV and Billboards and newspapers for advertising
purposes.
ADVERTISING BUDGET
They have allocated 35% of marketing budget for advertising.
FACTORS FOR DECIDING MEDIA STRATEGY
Which one is more effective
Cost benefit
More access
PROMOTION CAMPAIGN
Promotional activities provides chance to company to communicate with the potential
consumer to “Beat the drum” about it products.
Rafhan uses the following promotional methods.
The company sets up the store displays and sales officers make sure that items displayed
are properly arranged so that they can look attractive on eye contact level.
Company arranges their stalls in the exhibition at which the products are displayed and
sold at discounts.
Sometimes the company enters in the cooperative advertisement with other companies
and the logos of such companies are printed on Rafhan gifts that are given free along with
the product of those other companies.
The company gives off seasonal schemes of discount to distributors with an objective that
the benefit of discount should be passed to retailers and wholesaler.
Other sales promotional techniques adopted by Rafhan includes T.V. Programmes
i.e. Knorr Kay Zaikay sponsored by the company. .
There are different methods of promotions which are used by the rafhan best foods.
Promotion methods.
Advertising.
Newspaper .
Magazines.
Television.
Radio.
Road display.
Sales promotionCoups.
Premiums.
Samples.
Trade shows.
Co-operative.
Personal selling.Order gelter.
Order takes.
Sport sales.
People sales force.
Publicity.News.
Features.
Others.
Part six
Company accounting.
Finance system.
Accounting policies.
Basis of preparation.The accounts have been prepared on historical cost abd are in
accordance with the requirement of companies ordinance 1984,international accounting
standard applicable in Pakistan.
Revenue recognition.
Revenue from sales is recognized upon dispatch of goods to customers.
ACCOUNTING CONVENTION:
These accounts have been prepared under the historical cost convention.
STAFF RETIREMENT BENEFITS:
The company operates provident fund scheme for its permanent employees. Equal
monthly contribution are made, both by company and employees, at the rate of 8.33 %
basic pay and dearness allowance for those employees who have served the company for
the period less then five years. For the employees who have completed the five years or
more of service, contributions are made at the rate of 10 %.
The company has also created pension ad gratuity fund schemes for its permanent
management employees. The pension scheme provides lifetime pension to retired
employees or to there suppose. Contribution are payable to the pension and gratuity funds
on a monthly basis according to the actuarial recommendations. Actuarial valuations are
conducted annually.
COMPENSATED ABSENCES (LEAVE)
IAS 19 (revised1998) required that liability in respect of accumulated compensated
absences (leave) of employees should be accounted for in the periods in which these
absences are earned. According to the previous accounting policy of the company these
absences were accounted for on payment basis. Accordingly management has decided to
change the accounting policy of the company.
TAXATION
Consistent with prior years provision for current taxation is based on taxable income at
the current rates of taxation after taking into account tax credits and tax rebates available,
if any, or the minimum tax at the rate of 0.5 percent of the turn over, which ever is higher.
REVENUE RECOGNITION
Revenue from sales is recognized on dispatch of goods to customers. Sales are also
recognized when the company specifically appropriates deliverable goods against such
confirmed order where payments are secure.
INVESTMENT
Long-term investments are stated cost less provision for diminution in value.
Short-term investments are stated at the lower of cost and market value on a portfolio
basis.
Sources;(company annual report)
Balance Sheet.
2001. 2000.
Current assets.
Stores and spares. 12,148 10,068
Stock in trade. 148,141 191,936
Trade debts. 344,994 201,706
Advances,depositsprepayments and receivables. 45,238 51,682
Cash and bank balances. 26,990 2,647
Total current asset 577,511 458,039
Current liabilities.
Cuirrent portion of loan and finance lease. 87
Short term running finance. 175,836 31,985
Deposits,creditors,accrued liabilities. 150,788 131,074
Taxation. 27,649 129,505
Dividends 98,697 52,163
Total current liabilities. 452,970 344,814
INCOME STATEMENT.
Rs Rs
Sales 1841,358 1,484,604
Cost oF sales 1,249,608 931,248
Gross proFit 591,750 553,356
Selling and administeration exp 281,356 202,487
General and adm exp 102,784 58,260
Financial exp 30,144 38,253
442,034 329,233profit before other income 149,716 224,123
other income 9,275 4,198
profit before taxation 158,991 228,321
Taxation 70,840 88,300
Profit after taxation 88,151 140,021
Unappropriated profit brought forward 481,240 397,253
Sales deptIn the refhan best foods products are categorized by 2 categories
1 CATEGORY A
2 CATEGORY BThe following products are under the category of A.
DEXTROSE. BOUILLON.Energile chicken
Energile red syrup puloa
Energile rasbhara curry cubes
Energile sporty yakhni
Zaiqa masala
DESSERTS. SOUPS.Baby custard bag soups
Quick sert jelly noodles
Kheer mixx
SAUCES. OTHERS.Knor mayonnaise corn flour
Knor s spreads
Then comes the category B
OILS. SAUCES.
Corn tomato
Canola chili.
Cornola
DEXTROSE. DESSERT.
Gloxose_D rte jelly
jammy
OTHERS.l.soaps
In the same way they have categorized the cities also
CITY 1(for high demanding areas)
CITY2 (for middle demanding areas)First comes the city 1
KARACHI LAHORE
HYDERABAD FAISALABAD
SUKKUR GUJRANAWALA
QUETTA RAWALPINDI
MULTAN ISLAMABAD
PESHWAR
The following cities are under category B.
DADU DASKA
DHERKI GOJRA
GHOTKI GUJRAT
JACOBABAD JARANAWALA
KHAIR PUR MIRUS JHANG
KHUZDAR KHSUHAB
NAWABSHAH MANDI BAHAUDDIN
MIANWALI SHEIKHUPURA
TOBATEKSINGH KO ADDU
WAZIRABAD VEHARI
BAHAWALPTR ABBOTABAD
CHAKWAL DINA
GUJAR KHAN KOHAT
SADIWABAD DG.KHAN
R.Y KHAN MIR PUR A.K
WAH CANTT MARDAN
Now I will try to explain you the procedure of sales how the sales is to be made by this
company
PURCHASE ORDERWhenever any distributor needs any stock then he sends the
purchase order to faisal who deals with the purchase orders who after checking the
position of stocks in the computers make the GDO (goods delivery order) this gdo is
passes to the warehouse through which shipment is send to the distributor invoices of the
stocks are also made by this person zeeshan.
TRADE DEALSUsually premium is given to the distributor to fasten the sales which is
called the sales deals these incentives are given in such terms like if you will sale the 12
dozen of refhan corn oil then you will be entitled to have I tin free usually these are given
to those retailers who sells company products more then the targets.
TARGETSTargets are revised annually first then monthly then weekly you can take the
example og annual target lets say I 5 lack ton is the sale of chicken cubes last year then
the m.d may set the target like 5% of 5 lack and then 525000 becomes the new target for
the coming
Year
INCETIVES.There are the slabs for the incentives like it will start from the 70% if the
retailer sells the 70% of the targets from that he will entitled to have a incentives higher
the % of sales higher will be the incentives from140% the slabs become same incentives
are also given in term of cash like today’s there is a offer on energile if you sell energile up
to that limit then you will be able to get 7000rs actually these are the schemes through
which the actual price of the product comes down for shopkeeper like when you get I tin
of oils free from the sale of 12 then automatically your price comes down.
DISCOUNTSDiscount is also the type of incentive which is given to retailer you can
understand it from this scheme
Distributors incentives (valid for both energile galaxose_d) distributor achieving their
100%targets for June by June’s closing will get extra discount of 3% on invoice price
through claims so please take maximum advantage of this incentives
This is the discount offer u can have an idea from it.
CLAIMSClaims are given in the sense like there is the offer sell 3 get one free when thee
offer are given by the company then naturally shopkeepers get that I free energile from
the distributor and that distributor get that from the company not from his own pocket
and these claims are accumulated for the month and then these are adjusted at the end of
the month
TYPES OF SALES.
1primary sales
2secondary sales
PRIMARY SALES.It is that sales which is made directly made by the company like
when the company deliver good directly to the shops.
SECONDARY SALES.Secondary sales are those, which are made through retailer
One thing should be clear here the sales that are made through retailer are got under the
category of secondary sales.
Key accountsThese are of two types
Csd(canteen store department)
Usc(utilities sales corporation)These are the two types of primary sales that are
directly made by the company
According to the lever brother this key account sales should be 35% of the total sales but
the present picture is something different because at present it is just 7 %to8% at this
recent meeting which was held on 24 June the main focus point was that to increase the
percentage of key account.
Csd.There are only 12 csd in Pakistan which are in the main cities like
Lahore,islambadad.Karachi,peshwar
Usually this facility is provided to army officer that’s why these stores are in the kent area
now they are planning to increase the no of csd so that through them they can increase
their sales.
Usc.It is further divided into 2 types
1 small utilities store
2 departmental storesDepartmental stores are like you can say hkb rahat store and
small are those like which are in your town.
Rsf (rolling sales forecast).
In rolling sales forecast you will make the projection for the next year it mean to say is
that what stocks level you will needed for the next year and these projections are
determine from the last year volume first of forecast is made for the year then for month
and then for a week.
Targets.Targets are yearly goals that you have to achieve you set the target before the
start of year targets are further divided monthly, weekly.
Latest volume.Latest volume comes from the projection actually you do not keep or
made manufacturing at the same time for the year first of all you make the projection like
you can say that 1000 is your monthly requirement for July then 250 will be you weekly
stock supply which you must have to supply to the retailer manufacturing is made weekly
because it cost you so much so company puts its order according to requirement all it is
done to reduce the storage cost.
Closing.In these days people are very busy because of closing they made closing on
monthly basis at every end of month they revise their accounts, books, and prices
Quality policy
(To meet our expectations and needs refhan best foods is committed to
developed ensure consistent supply of affordable convenient safe and high
quality products)
MISSION STATEMENT.1 our company is a most successful in proving day to day
necessary products of daily life who has a unique relationship with this country
2 we chose the selective people and polish them these people with their capabilities tries
to increase the business by 10%
3 we provide everywhere everything to the people with the certification of health
4 we try our best that our business should be simple and in a advance pattern
5 we try our best to make it possible what our customer needs
6 with the regular supply chain we make a deep flat linkage between supplier and
customer
7 our rules and regulation are based on safety health, envirnment protection,
TRADE MARKTINGTrade marketing is the coordination between markting, sales and
production actually first of all marketers plans what to sells and how much to sell then
the production is to be done in a plant which is to be sell by the sales people
TRADE MARKTING
DEFINATIONOrientate the organization towards customer and channel focus
Voice of sales in cross functional groups
Role differs from company to company, reflecting the relative diversity of trade,
customer and the business trading philosophy.
TASK AND RESPONSIBILITIES.
1 input to brand plans.Ensure input of shopper, market, trade and customer data to
brand specific plans
Brand performance feedback
Branchwise sales feedback
Qualitative revies
Provide regular input to brand innovation plans
Compile and maintain brand and trade fact book (historical volume and sku pricing.sku
contribution.mergins, promotion evaluations.pop summary.
2-channel/pop strategies.. Define channels (customize unilever channel tree)
. Understand channel,pop dynamics
. Shopper behaviour understanding
. Trade survey.triggers.barriers.satisfaction.
4 define availability and visibility targets.
Set targets and monitor progress
Develop merchandizing strategy based on channel and pop attributes.
5 quarter rooling activity plans.
. Design plan. Cost. Agree and implement al trade activation
. Monitoring is responsibility of field sales
Compile post evalution of all activation plans.
6 pricing and trade terms.
inputs to commercial on margin strategy
Recommend specific trading terms
Projects munafa
Track trade margin stucture of competition.
MARKET VISIT
RETAIL AUDIT
. SALES
SALES REVENUES
Rafhan Bestfoods have increasing its instead of recession in economy in 1997-98 Rafhan
Bestfood sales increases 25%. In 1998-99. Sales increase 36% from previous one.
13.2 PERSONAL SELLING
Rafhan Bestfood some time use this strategy whenever they introduce new thing in
market they used to go customer first. It is sort of market test from where they can judge
the success of their how product.
13.3 FUTURE FORECASTS OF MARKET
Although the economy of the country continues to be under pressure with ongoing
increase in utility and fuel prices as well as slowdown in manufacturing and service
sectors. The implementation of general sales tax at the retail level, lower trade liquidity,
and declining consumer disposable income will result in an even more challenging
business environment. But there is a significant potential for packaged food in Pakistan
and opportunities for export to the Central Asian States. There is a healthy business
growth in the future years.
13.4 SALES FORCE
Rafhan has a big sales force. Almost 300 persons are in their sales force. Rafhan policies
are to maintain the sale so that they prefer experienced sales person.
13.5 SALES FORCE TRAINING & DEVELOPMENT
They recently started sales force training and development because they know feel the
importance of training. Most of the countries are giving stress on sales force training and
spending lot of money on their training and development.
13.6 SALES TARGET
Rafhan Bestfoods set their sales target on monthly and annually basis. These target are
divided into zone and then into cities level.
13.7 SALES INCENTIVES
Those incentives which motivates and person to sell more. incentives in term of cash like
for sales force if a sales person achieve their target then their incentive is like this
MARKETING RESEARCH.
On 2 th july for the first time they ask me to have a marketing visit. My boss mr chohan
ask me and come with the finding that trade schemes are offer by the mitcheals national
meegi in ketchup actually they sent me on the market to let know what trade schemes are
given by their competators after a 4 hour market visit I have come with the finding that
they are offering 12+1 so that’s why our company decided12+2 so that they can have a
larger share
poor results, almost in all areas. The schemes are not properly given out to the trader and the communications between DSF/S.O and
Main bazaar, GT. road, Baigumkott, Rana town, and Vandala bazaar
Shops visited = 60
Category A 23
Category B 18
Category C 19
Findings
Here what I have observed is that distributor were not providing the proper market coverage to this area. Availability and visibility
both were very poor. Same is the case with the schemes. I could not find a single trader who was happy with the distributors. People
here prefer to buy from Lahore because of low prices. Now the question arises why the people are willing to buy from Lahore? The
reason is simple; prices are low in Lahore as compare to these towns. Actually what the wholesaler is doing that he’s passing the chunk
of scheme to the traders, which he receives, from the company. If the distributors of Shahdra and Mureedkay will provide proper
coverage with the full schemes, then there would be no need for the traders to buy from Lahore.
KAMONKY
Areas visited
Shops visited = 20
Category A 3
Category B 15
Category C 2
Findings
The availability of products was not very good. The need is to provide proper coverage you can have an idea from the analysis. That
how far it is way from the benchmark but when you talk about the schemes then situation is darker here. What the distributor is doing
that if there is an offer of Rs/10 for any product, he keeps Rs/8 in his pocket and offer only Rs/2 as a discount to the trader.
DASKA
Areas visited
Shops visited = 40
Findings
Really pleased to inform you that the market situation in this particular area is very good. People are very pleased with their distributor.
They receive regular supplies. Salesmen are very active here and the Retailers are enjoying the full schemes offered by the company.
In the nut shull trader were pleased with the service provided by their distributor. I am glad to inform you the visibility of product is
Shops visited = 19
Shops visited = 20
Findings:
In the market the availability of stock was very good Stocks are provided at their regular time but visibility of stocks was not good. I
saw only custard and cornflour on the shelves. The same was case with the schemes. When I told them about the current schemes,
they got really surprised. My observation was that distributor is not passing the schemes properly. He amends them and offers them
on partial basis.
SHEIKHUPURA
Areas visited
Shops visited = 40
Findings.
I observed the availability and visibility of stock was good. The problem area was schemes like other cities. I visited one of main super
store of Sheikhupura, and asked him about schemes. He called the distributor and asked him about the current schemes of corn oil
10 Ltr. Distributor told him that the schemes was Rs/25 for2 tins but in actual the schemes is Rs/30 for 1tin. You can have idea
from this that the schemes are not properly given out.
Shops visited = 40
Shops visited = 39
Findings
Reactions:
Email ThisBlogThis!Share to TwitterShare to Facebook
Newer PostOlder Post