Name: Nayyab Ahmed

Section: B

HALEBB MILK (HALEEB FOOD LIMITED)

Pakistan is the world’s fifth largest dairy industry in the world and cheaper than many
developed countries in the world like Australia and America. So there is a tremendous
amount of opportunity for firms to excel in this industry. Chaudhry Dairies limited is
one of those who have entered the dairy industry of Pakistan and have posed serious
threats to well established firms like Nestle. Chaudhary limited was incorporated in
1984 as a Public limited Company. It was established with the financial aid of PICIC
(Pakistan Industrial Credit and Investment Corporation) and ADBP (Agricultural
Development Bank of Pakistan). The head office is situated at 135 Ferozepur Road;
Lahore while the plant is situated at 62 km Lahore-Multan Road, Bhai Pheru. In
keeping with the company's commitment towards product diversification and to
provide a wide range of quality food products to their valued customers, the name of
Chaudhry Dairies limited was changed to Haleeb Foods Limited with effect from
February, 2004. Commercial production started in1986 and its first product ws haleeb
milk since then it has continued to provide quality products to its consumers, it started
its operation in 1985 at that time 20 other dairy plants were also coming in, and all
those including MILK PAK were using obsolete technology that was used in
EUROPE. Haleeb plant was the only plant based on the latest technology and the
basic idea behind that was providing consumer quality packaged food particularly
dairy Foods products.Haleeb Foods Limited (Formerly CDL Foods Limited) is one of
the Pakistan based company with a burning passion to take on the international
market. In the clutter of multinational the company has a distinguished and a
prestigious place. The name of Haleeb foods limited is synonymous with best quality
foods product.

Mission Statement of Haleeb Foods

“To build branded food business and to improve quality of life by offering tasty,
affordable and highly nutritional products to our consumers while maximizing share
holder’s value”.

Vision Statement of Haleeb Foods

Most innovative and fast growing food company offering products enjoyed in “every
home every day”.

Values of the Company

 Enterprise

 Empowerment

 Accountability

 Trust

 Teamwork

Product range

Haleeb has segmented its product portfolio into three leading brands

 Haleeb

 Candia

 Tropico

The products can be divided into following ways

1. Consumer products

2. Industrial products

3. Exports

CONSUMER PRODUCTS
Products, which are branded and are sold to the end consumer through a distribution
chain in the packaged from as produced by the company. Consumer products are sold
under following brand names

1) Dairy Products

i. Daizy Butter

ii.Nutrious Thick Milk

iii.Daizy Yogurt
iv.Liquid Tea Whitener

v.Powder Tea Whitener

vi.Daizy Cheese

vii.Asli Desi Ghee

2) UHT Milk

i.Haleeb Nutrious Thick Milk

ii.Dairy Queen

iii.Candy Up Flavored Milk

iv.Skimz Liquid Milk

v.Skimz Powder Milk

3) Tropico:

i.Tropico Nectar

ii.Good Day 100% Pure

INDUSTRIAL PRODUCTS
Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal
use, it is also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was
introduced in 1996. Both products are sold in 25 kg bags. Excess milk fat is sold
unprocessed to makers of butter, ice cream and sweeteners, or at request is turned into
ghee.

EXPORTS
CDL started exporting its products in 1999 and has done business with customers in
Korea,Afghanistan and china, United Kingdom. The company is not only supplying
products nation wide but also currently exporting its products to Afghanistan,
Bangladesh, Europe and America. It exports Desi Ghee to South Africa. Cream, milk
and fruit juices to Uk. Powdered milk and ghee to Qatar. It is also planning to export
its products to Canada,Dubai and Uzbekistan

TARGET MARKET
The targeting strategy that Haleeb Food uses for haleeb milk is Undifferentiated that
is they have a same marketing mix for the complete market and they take the whole
market that includes all the people with different usage of the product. In such a
targeting decision a basic product would be offered to the whole market that includes
almost all age groups and different life styles. Haleeb milk is a mass marketed product

MARKETING STRATEGY
Haleeb is currently serving its product to mass market that means that they have not
segmented their market. They are serving their product to everyone. Milk is a product
which generally does not need to be segmented because it is required in every
household. So Haleeb is focusing on a big market which is not segmented so they can
achieve higher profits. It’s not only Haleeb which is targeting mass marketing but
other competitor like Milk Pak and Olpers are also focusing on mass marketing.
In case of Haleeb, their marketing strategy is to create market positioning which
means arranging for a product to occupy a clear, distinctive and desirable place
relative to competing products in the minds of target customers. They have positioned
their product in minds of customers as a quality product; their milk comes straight
from the farms.They have positioned their product as hygienic. They claim that their
milk is pure from germs and is thick than other competing brands. They believe that
their product has natural enrichments.

MARKETING MIX OF HALEEB FOODS

The marketing mix covers all the aspects which play an important role in the physical
appearance, affordability and the way a product is placed in front of the consumer. It
helps in building an image which would in the end help the company to capture huge
market share
.

PRODUCT
Product line is decided through consumer demand to get positive results. Haleeb
Foods have adopted a customer driven approach and regularly conducts environment
analysis to check consumer lifestyles, competitor’s products and advancements in
technology. The Research and Development Department conducts opportunity
analysis; checks gap in market segment and generates an idea.
Currently Haleeb is available in four sizes i.e. 250 ml, 500ml, 1 litre and 1.5 litre. The
packaging is not so much attractive but it is easy to handle by the consumers. The
packaging lists all the ingredients used in the product which are in line with the legal
requirements. In order to increase its sales Haleeb has to change its packaging. It
should design a new colorful packaging so consumers can be attracted to its
packaging. It is a common trend in manufacturing businesses to change the packaging
of the product which gives it a new feel and it do affect the sales and the profitability
of the company. Consumers everywhere know that only Haleeb Milk makes the best
tea ever because of its thickness
Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest
standard with 3.5% fats and 8.9% solid non fats.. Packed in easy to open, 6-layered
Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life

PRICE
Haleeb Foods are priced keeping in view the buying power of middle-income and
high-income social classes. The cost includes the cost of manufacturing, labor, raw
materials etc. Being a multinational brand, the pricing objective of Haleeb Foods is
mainly to increase sales as it has already penetrated the market. Their prices are not
affected by price changes by competitors, and they don’t engage in price wars.
Competition is met through innovation. The prices of Haleeb Foods change as the
product size is changed of the Product Life Cycle. And Because of the contract
between the seller companies, they offer same price. They use pricing strategy on cost
base method, to make there prices of different products. The retail prices are different
according to there size and brand. However prices have been standardized throughout
Pakistan and there is no differentiation based on geographical areas. There is no
change in prices according to season. It remains the same. Wholesale price is cheaper
than the retail price because in wholesale the selling is in bulk.There is no discount
and early cash payment policy in Haleeb foods. They adopt same strategy in
international marketing as in local marketing. But the prices are according to the
international currency.
The prices of four different size packs are as follows
250ml: Rs 50
500ml: Rs 75
1 litre: Rs 132

Pricing Strategy
Haleeb is using market penetration pricing strategy for their product since it is not
performing well now days. It is seeing the worst phase of its life cycle. So in order to
survive this phase Haleeb is focusing on penetration pricing. There is not a lot of
difference in the prices of its competitors because Haleeb has to cover all of its
expenses
In order to survive this period of product life cycle Haleeb can carry number of steps
so its product can get back where it was previously. Haleeb can introduce Quantity
Discount. It is actually the deduction from sellers list price intended to encourage the
customers to buy in larger amounts. This discount is based on the size of purchase
either in rupees or in units

Pricing Objectives
The objectives of Haleeb foods for pricing Haleeb milk are as follows:
1. To achieve a target return.
2. To maximize profit.
3. Stabilize prices to meet competition
4. Market share Leadership
5. Product Quality Leadership

PROMOTION
Good Promotion always plays an important role in the success of any product. A good
product can fail if it is not properly promoted. Haleeb Foods is taking big steps to
promote it’s product by maintaining good relationship with the community of
Pakistan. Like other companies Haleeb is using different modes of media for
advertising just like Newspapers,Telivision, Radio, Magazines, Newsletters, Internet,
Brouchers etc.
Currently Haleeb is doing promotion equal to zero. They are not giving any
advertisements. They are not doing other type of promotional activities like displaying
their product in an attractive manner in big stores. While its competitors Milk Pak and
Olpers are doing all kinds of promotional activities. Haleeb should concentrate more
on promotion in order to increase its sales. They should do advertisements on
electronic media like televisions. They can also give discount to their customers

Posters and billboards:

Posters and billboards are also affectively used for the promotion purposes but they
are not focusing on it as heavily as they are focusing on advertising. Billboards are
purchased for some time period but after the promotion is known to everyone the
billboard were not used anymore. Posters are pasted at the small shops to enforce the
impulse buying and Haleeb gives a lot of weight-age to the shelf space that they get.
But this strategy is used in big shopping malls

PLACE
Place include three major areas that are Industrial, Shopping, Residential area. It is
difficult for people to go to factory to get Haleeb’s products. Its products are available
in shopping areas and residential areas. They distribute there products nationally and
internationally through out the world. Haleeb Foods are distributed using an indirect
channel, that is,dealers. They follow pushing strategy. In which firms in a distribution
channel cooperate in marketing a product. It includes suppliers and retailers. Retailers
take order from retail stores on daily basis and provide products according to order.
There are two departments
• Raw material department
• Finished goods department

Channel of distribution which Haleeb is following is Producer Distributors Retailers

Consumers

Producer Distributors Retailers

Consumers

This diagram shows that Haleeb is passing through producers to their distributors that
will distribute Haleeb to different retailers and markets then the consumers will buy
Haleeb from retailers. Haleeb is currently available in the market but it is not
available in every store or shop. Haleeb cannot be easily found. The distribution is not
good; it is a problem with their distribution. The product is not distributed everywhere.
Haleeb has to improve its distribution channel so the consumers can buy it from
everywhere

SWOT Analysis

Strength

i. It includes Natural Enrichments which are healthy for human body.

ii. It is Hygienic which is good for human health.

iii. It is the thickest milk in the market which is also its unique selling point.

iv. It has good tetra pack packaging which sustains quality.

v. National brand having good repute over international brands

vi. Experience of more then 25 years in the market

vii. Quality improvement

viii. Pioneer of flavoured milk

Weakness

i. The Distribution Channel of Haleeb is not good. Its product is not distributed
everywhere.

ii. They are doing Less Promotions which is causing Haleeb to fall down.

iii. Communication gap

iv. Uncertain economic and political conditions of the country effects them as the
product is sensitive.

v. The demand of the market is less then the actual capacity of the production plant
which is also a reason for high prices of the end product.

vi. Haleeb was out of the promotional scene from 5-6 months when Olpers was
launched.

Opportunity:

i. The company can distribute Haleeb everywhere and in new markets like rural
areas so it can increase its market share.

ii. Getting international contracts with England, Middle East,and Holland,

Afghanistan

iii. Haleeb can import its food items and juices to middle east

iv. They can produce flavoured yougurt, icecream and milk products like kheer and
firni

v. They can go for joint venture with other companies to attract the market share
Threats:

i. There are large number of competitors present in the market like Milk Pak,Olpers,
Nurpur, Good Milk and some imported brands.

ii. A large number of consumers are brand loyal to Milk Pak and Olpers so it is hard
to break brand loyalty.

iii. There is a fierce competition because the advertisement campaigns of different

competitors are very good.

iv. New entrants.

v. Milkman providing open milk and even delivering it to the door step.

vi. The target market is still small in numbers where as a number of companies have
recently joined the dairy sector in the past 3 years.

vii. Dependency on contractors for the supply of milk.

MARKET SHARE
Haleeb has a 38% of the total market share. They are the market challengers. The
market leader is Nestle with 44% of market share.

COMPETITORS
The major competitors of haleeb food limited are
i. Nestle
ii. Engro (Olpers)

OLPERS (ENGRO FOODS)

Olpers was introduced in 2006 The brand philosophy resonates well with mothers
who are constantly in the process of seeking superior nutrition for their
children.Olper’s partners with these concerned mothers through three distinct pack
sizes & packaging formats;
 Ecolean 250ml
 Tetra Brik Edge 1000ml with cap
 Tetra Brik 1500ml with cap.
Olpers include Olpers milk, Olpers cream, Olpers tarka

NESTLE
Nestle a Switzerland based company has been serving Pakistani consumer since 1988
when it first acquired the shares in Milk Pak. Nestle is offering the following products
in dairy line Milkpak, Nestle Bunyaad, Nesvita, Nido, Nestlac, Everyday, Nestle Dahi,
Nestle Fruit Yogurt, Nestle Raita and Milk Pak Cream

COMPETTIVE ANALYSIS OF HALEEB FOODS

Haleeb Foods competitors in the dairy industry are mainly Nestle and Engro Foods.
Nestle a Switzerland based company has been serving Pakistani consumer since 1988
when it first acquired the shares in Milk Pak. Nestle is offering the following products
in dairy line Milkpak, Nesvita, Nido, Nestlac, Everyday, Nestle Dahi, Nestle Fruit
Yogurt, Nestle Raita and Milk Pak Cream. From the product line it is clear that why
Nestle is the market leader grabbing 44% of the market share.The major contributor is
its appropriate strategy particularly its relationship with the social and environmental
sectors. Perhaps this is the reason that in spite of being a multinational brand it has
been well accepted in Pakistan. There are ample chances for its survival in the future.

Engro foods established in 2004 are nicely on its way to grab a handsome portion of
market share. Engro is all about people who are a part of them. Their culture is
dynamic and energetic with emphasis on core values and loyalty of employees. It has
got 10% of the market share in dairy industry of Pakistan. Top Quality brands like
Olpers, Olwell, Tarang, Omore and Owsum have been successfully launched under
the helm of company’s dairy products. Haleeb Foods have grabbed 38% of the market
share with annual turnover of 10 billion annually and it has posed serious threats
to the Nestle Dairy product line. The remaining share of the market has been with the
small competitors and milk man providing non branded milk in the dairy industry of
Pakistan.

Why Nestle Dairy Products are Market Leaders?

i. Keeping new players like Olpers and old ones like Haleeb, Nestle emphasized
more on advertising
ii. its price is high against its competitors but it matches its quality with its
competitors.
iii. Nestle is using its brand name and its packaging is good to promote its products.
iv. We can easily find Nestle from any retailer shop
v. Nestle Pakistan aims at growing into a number one food company in Pakistan in
the shortest possible time with the unique ability to meet the needs of consumers
of every age group - from infancy to old age, for nutrition and pleasure, through
development of a large variety of food categories of products with highest quality
vi. Nestle have been experiencing a constant increase in cost with raw materials
contributing the larger part of its incease. Haleeb having their own suppliers so
the raw material cost is bit too low.
vii. Nestle maintained its value of gross profit nearly or above 30% to ensure that it
has strong control over its costs and efficiency of production. But on the other
hand Haleeb faced a bit of downfall when OLPERS introduced their campaigns

REASONS FOR DOWNFALL

The downfall of the company can mostly be attributed to the previous management’s
shift in focus from their core product, white milk, to other categories. Although those
other categories have not resulted in a total loss as Haleeb is still number two in the
tea whitener category, Engro and Nestle have taken over the market space vacated by
Haleeb in the white milk category
Rubab Gardezi, Brand Manager of House of Nurpur explains, “Haleeb did not keep
its focus on the white milk category which was scooped up by new players in the
years from 2005 to 2007, which is when Olpers entered the market and took a major
chunk out of their share”.Not only that but she added that the quality of Haleeb’s
product also went down allowing other players to take their market share
There are number of problems present for Haleeb. The most important problem for
them is that their market share is decreasing fast. So ultimately their profits are also
affected. The reason why Haleeb’s market share has decreased is because new
competitors have entered into the market like Olpers, Nurpur and Good Milk. They
have done extensive promotional activities and attracted consumers to buy their
product. Haleeb’s distribution channels are also not good and their product is not
delivered at every store and shop. They are not doing any promotional activity which
is also affecting their sales. They are not able to design effective marketing strategies
which have also played a role in the downfall of Haleeb in the market. The
competition has grown bigger and tougher so it is very tough and difficult for Haleeb
to survive in this cut throat competition.

ADVERTISEMENT ISSUES OF HALEEB FOODS LIMITED

With the arrival of ENGRO FOODS in dairy industry of Pakistan, it has caused
serious concerns to Haleeb Foods with respect to competition in markets of Pakistan.
Haleeb Milk which is ranked as a STAR in the product line of Haleeb Foods has been
seriously challenged by the aggressive advertisement campaigns of OlPERS. Haleeb
Milk sales have been seriously threatened in one of the huge cities of Pakistan like
Karachi by Olpers. In fact, sales of Haleeb Milk are more in Lahore than Karachi,
which shows the nature of threats that have been posed by Olpers to seasoned players
like Haleeb Milk in dairy industry.

When Olpers was launched they aggressively advertised themselves. Generally,

women select the brand of milk that suits their children or for the regular use in homes
of Pakistan. It is the nature of women that they are attracted towards something more
quickly than men. That is where OLPERS outsmarted the seasoned competitors by
advertising aggressively between 9.00 AM to 12:00PM and from 8.00 PM to 9.00 PM,
as this is the time when most women switch to television and that is the time when
Olpers imposed itself in the mind of Pakistani women who generally make decisions
which brand of milk to use or not. This is where Haleeb Foods is perhaps lagging
behind other dairy industry competitors

It has been proved through research that Olpers have advertised itself 60% more than
Haleeb milk. They have really limited the use of their product through their own
advertisement by saying “CHAYE BANAYE KHOOB HALEEB”. they are
themselves saying that their milk is only tea purpose through this campaign, it could
also have been positioned for usage in the Kitchen i.e. for cooking and for making
sweet dishes as well If we closely look at the ads of Olpers or even Milk Pak they
show various uses of their milk in one add. In, Olpers latest advertisement we see that
they have shown an old man and a child drinking the milk. It shows that their milk is
suited for old people as well as young generation of Pakistan. They obviously show
that it is good for making tea but also show its usefulness in making sweet dishes
through their advertisement. ENGRO FOODS has beautifully read the lifestyle of
large population of Pakistan. They have shown five or six uses of their milk in one
advertisement. Would you like to buy a product that has one use or six uses? So,
where is Haleeb FOODS thinking tank? They have themselves limited the use of their
product.

There is no proper portfolio management of Haleeb Foods as they have a number of

products in which they are operating. There are still a large number of products that
have not advertised yet and hardly anyone is aware that they are launched or available
in the market. People don’t know about the most of the products of HALEEB FOODS
LIMITED like DAIZY CHEEZ, DAIZY YOGURT, SKIMMZ POWDER MILK and
SKIMMZ liquid milk. So how can you succeed if people don’t know that your
products are available in the market

REBUILDING THE BRAND IMAGE

They are targeting different socioeconomic classes (SEC’s) with different packaging.
For the KP province, they did research and began producing a specific packaging for
the All Max brand based on imagery and designs that were preferred in that
geographical area. This differentiation is also done in terms of the size of the
packaging, for example in the case of Haleeb milk, as smaller packs are sold cheaper,
the 250ml pack is targeted at SEC B and C.

The Tea Max product is popular in the outskirts of main cities but the company is now
planning to enter big stores like Jalal Sons and Al-Fatah to target the main urban
population as well. At present they are at Metro, Imtiaz and Hyper and now they are
planing to enter Al Fatah and Jalal Sons stores by next year.

Over the years Haleeb has paid little attention to their marketing strategy resulting in
very little innovation towards the image building of the brand. Other brands did not
make the same mistake for example Olpers that hit the market with “Subah Bakhair
Zindagi”, Good Milk (Shakarganj Food Products) came up with “Roz Roz Goodmilk
Piya Karo” and Nestlé brought “Khalis Hi Sab Kuch Hai”. Haleeb however stuck with
their ‘Garha’ milk with “Aik Garha Rishta Umer Bher K Liye”.

OTHER RECOMMENDATIONS:

 Haleeb food Ltd. should allocate a healthy budget for advertising its products, if
really wants to compete at par with its direct competitors.
 The activities like customer satisfaction day 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.
 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 city.
 Haleeb is not concentrating on the country wise basis; its major focus is only at
Lahore and adjacent areas.
 Haleeb has to change its perception of milk for tea only, as it is not taken as
milk for general consumption, so it looses a large chunk of consumers in the
packaged milk market.
 Haleeb has launched too many products; it really needs product analysis and cut
down its product line, only leaving the profitable brands or the brands with some
good potential in the future.
 Promotional mix at HFL is not well 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.