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Haleeb Foods 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 in 1986 & the company reached its breakeven in the year

1992. Initially 150 people were employed at the plant. The liquid milk was the first product

launched in the market, 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 products.

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Mission Statement of Haleeb Foods

“To build branded food business 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

MILESTONES ACHIEVED BY HALEEB FOODS LIMITED (CDL)

HACCP (in process controls for safer products)

ISO 9002 (better quality for greater customer satisfaction)

ISO 14000 (environment-friendly operations)

TOTAL QUALITY MANAGEMENT (TQM)

Haleeb Foods limited has established TQM system in 1994. Today's business world is all about

TQM and HFL has done it 12 years before. The company follows the philosophy of “delighting

the customers ". The company treats them as partners and keep channel of communication open

with them. The company has succeeded in this by continuously improving the quality of its

products and by satisfying the needs of its customers. The company believes in creating and

sustaining an environment, which encourages learning and empowerment and these in turn help

strengthen the quality culture across the business. Haleeb Foods Limited has got the honor to

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launch sterilized milk for the first time in Pakistan. Also the credit for launching the milk in tetra

fine packaging, for the first time in Pakistan, goes to Haleeb Foods Limited.

CURRENT SITUATION

Haleeb Foods Functional Organization Structure

Haleeb is a public limited company managed by a board of directors who has vested (to have the

rights of ownership) the control of company operations to Managing Director (MD). Haleeb is

an organization run by a team of professionals headed by a team of professionals. It has 17

departments successfully running their operations. The Functional Organization Structure has

the following details:

Chairman / Board of Directors

Managing Director

Human Resources (HRD)

Accounts & Finance (A&F)

Marketing (MKT)

Sales (SAL)

Supply Chain (SC)

Operations (OPR)

Quality Assurance (QAD)

Research & Development (R&D)

Finance Department

Information System

Technical Department

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ORGANIZATION CULTURE

Organizational culture is an idea in the field of Organizational studies and management which

describes the psychology, attitudes, experiences, beliefs and values (personal and cultural

values) of an organization. Organizational culture of Haleeb Foods Limited includes structures,

policies and corporate culture.

Structure: Company has a centralized structure (Situation in which decision-making power is

at the top of an organization and there is little delegation of authority) all the decisions are made

by the board of directors, heads of marketing, finance and production departments.

Policies: Company adheres (to stick) to strict policies, which are all directed towards Dairy

product improvements and providing best nutritive value to its customers.

Culture: The way people talk, dress up and work determines the corporate culture of the

company. Haleeb Foods Limited has a competitive culture, where strong values such as team

work, empowerment and sharing of ideas are encouraged.

SITUATIONAL ANALYSIS

HALEEB FOODS LIMITED is one of those few leading national companies. It collects about

eight hundred thousand liters of fresh milk everyday from its large number of collection points

located all over Punjab, chills it at the site and processes to manufacture different products .

PRODUCT RANGE

Haleeb Foods Limited is producing the quality products as per the standards of ISO & HACCP.

Along with the quality products, Haleeb is also producing the wide range of the products

including milk based products, juices, powder etc. The products can be divided into following

ways

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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

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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 Uk. Powdered milk and ghee

to Qatar. It is also planning to export its products to Canada, Dubai and Uzbekistan.

The Executives of Haleeb Foods claims that growth rate of Haleeb Foods PVT Limited is

highest as compared to any other company in Pakistan. Its total sales grew immensely in last few

years. It has given jobs to 2200 employees which includes skilled unskilled and temporaries. Its

plants in Lahore 3-shift basis daily in which every shift lasts for eight hours that means the plant

works 24 hours a day. As the company is making products on large scale, it produces a lot of

waste as well which is being disposed in an efficient way in order to keep the environment

health and clean as respect for the national Protection Laws. The company is earning high

profits and as a result it is sponsoring the welfare of the children as it runs about 600 schools in

different parts of the company. It is one of the major tax payers as it claims to be very honest in

tax assessments and paying of tax amounts set by the Government. The major secret of the

success of the company is the practice of the Honesty in every field and on all frontiers that are

expanding day by day. The company investor and management teams have unanimously decided

since the start that there will be no compromise on quality of products. That is why it subjects

milk to strict tests on the basis of which there is a lot of reduction in supply due to rejection

which is approximately more than 100,000 liters per day, a very big loss daily. The company

bears this loss daily instead of selling in the market because they don’t want to compromise on

quality. The company administration has taken keen interests in refining the environment of its

establishments and developed all of its sites at the highest aesthetic standards. It has a very

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attractive office at 135-Ferozpur Road Lahore and a beautiful food processing plant with

amazing landscape 62 kilometers on Multan road. The plant is not only a production but also has

a big warehouse, a mosque, a fair price shop and a guest house. It has commissioned a similar

type of plant with a huge capacity in Rahim –Yaar- Khan.

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.

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

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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.

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.

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

From the finished goods department the product goes to the warehouses.

Haleeb Foods Company has four types of dealers

Normal Dealers: Deals in Haleeb milk along with the other brands of company.

Exclusive Dealers: Deal in Haleeb milk only

Mega Dealers: Same as normal dealers but are offered extra trade discount due to

high sales potential.

Corporate Dealers: Handle institutional sales

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COMPETITIVE ANALYSIS OF HALEEB FOODS

SWOT ANALYSIS OF DAIRY INDUSTRY IN PAKISTAN

STRENGTHS

Endowed with the very good breed of buffaloes

Highest per capita consumption of milk in association

Regular culling of less productive animals

A high ratio of agricultural land to cultural ratio

An emergence of commercial dairy farms on a large scale

WEAKNESSES

Small and scattered animal holding

Prevalence of traditional raw milk marketing system

Poor quality of milk

Milk processing predominantly dependent on obsolete UHT technology

Lack of access to well trained support service staff. 

OPPORTUNITIES

Huge unsatisfied demand of milk and milk products

Increase consumer awareness of healthy eating

THREATS

Inadequate public and private investment in modernization of sector

Vested interests in perpetuating the dependence of imports in dairy products

Unregulated imports of dairy products at cheap prices

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PEST ANALYSIS OF HALEEB FOODS

It is very important that an organization considers its environment before beginning the

proceedings. In fact, environmental analysis should be continuous and feed all aspects of

planning.

POLITICAL CONDITIONS

The political conditions are not very stable in the country, but this does not directly

influence the trends and spending patterns of the customers. There are no restrictions or

barriers on the growth of this industry. So the political conditions are favorable for this

market because food and dairy products are consumer goods and they have to purchase it

in any condition.

ECONOMICAL CONDITIONS

The fluctuations in Pakistan economy also effect Haleeb’s market position. Because of

high inflation and low purchasing power Haleeb is unable to capture many potential

customers of the large Pakistani population who have to struggle hard to make their

living possible rather than to afford the luxury of drinking packed milk as often as they

would like to.

SOCIAL CONDITIONS

The social patterns are changing in the country, as the world is becoming a global

village, and mutually share and accept patterns. People are becoming more attractive

towards the branded products. It is becoming fashion and young generations as well as

the children are getting more attracted towards this industry. People are moving towards

branded food/dairy products due to hygienic reason.

TECHNOLOGICAL CONDITIONS

High technology is the basic requirement of dairy and food industry. The companies that

are using latest technology have some cost benefits over the companies, which are not

using high technology. Haleeb Foods Limited employs the latest machinery in

production in its plants and computerized systems for quality checks and control as well

as production. In milk industry the most latest technology is in operation in Pakistan

hence no competitor poses a threat to Haleeb on basis of technology. Their Ultra High

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Temperature is a technology which maintains the quality of their milk and at the same

time provides thickness.

SWOT ANALYSIS OF HALEEB FOODS

STRENGTHS

Highly sophisticated plant and equipment

Qualified work force

Focus on research and development

First and the only dairy company in Pakistan to get ISO 9002 Certification

WEAKNESSES

Low promotional activities

Comparatively weak distribution system

OPPORTUNITIES

Haleeb Foods Limited can export food items especially Juices to Middle East

CDL Foods limited has been changed to Haleeb Foods Limited, so this change in name

can help them to attract foreign customers.

Haleeb Foods Limited can go for related diversification by producing pure juices and

flavored yoghurt.

Haleeb Foods Limited can go for joint venture with other companies to attract the market

share.

THREATS

Strong competitors i.e. Nestle, Engro Foods

Price sensitive people

Milk men (Gawalas) providing non branded milk in homes

COMPETTIVE ANALYSIS OF HALEEB FOODS

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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 with 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 contributors of Nestle success are HR, Marketing and Sales

Department. 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 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 Gawallas providing non branded milk in the dairy industry

of Pakistan.

Why Nestle Dairy Products are Market Leaders?

Keeping new players like Olpers and old ones like Haleeb Nestle emphasized

more on advertising

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.

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.

BCG Matrix

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Haleeb milk is categorized as a star in the Haleeb Foods Limited product line as it brings the

most in terms of revenues to Haleeb Foods Limited. It has been most productive for Haleeb

Foods Limited since their operations.Haleeb Milk has grabed more than 54% of the market

share. But they must invest more in it to make it more profitable as tough competitors like

OLPERS and Milk Pak are still in competition and trying to grab a handsome portion. Skimmz

Powder Milk and Daizy Yogurt are having proved to be dogs in product line of Haleeb Foods.

Nestle Dahi and Nestle Fruit Yogurt is nicely dominating Daizy Yogurt and Skimmz Powder

Milk hasn’t met the destination where Haleeb Foods Limited would have hoped in Pakistan.

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. As discussed earlier, 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 3.00 PM to

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5.00 PM 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. Good Promotion always plays an

important role in the success of any product. A good product can fail if it is not properly

promoted. There are serious concerns about the advertisement of Haleeb Milk for me. They have

really limited the use of their product through their own advertisement by saying “CHAYE

BANAYE KHOOB HALEEB”. There are serious concerns for me they are themselves saying

that their milk is only tea purpose through this campaign, so what about drinking HALEEB

MILK. Is it harmful to drink HALEEB Milk? 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. For

me 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. That is one of the flaws in HALEEB FOODS advertising.

Another thing as far as their advertisement is that for at least past five or six years they were

having “SADIA IMAM” in their advertisement except their last last advertisement. Whereas,

ENGRO FOODS has come up with most attractive and gorgeous models of Pakistan in their

advertisements. In the recent advertisement of HALEEB FOODS they have come up with old

ZEBA BAKHTIAR and SHAAN. People are more attracted towards fresh gorgeous faces rather

than old beautiful faces. So, selection of somebody who is representing your brand is also very

important. We also see in the advertisement of our neighbor country that Katrina Kaif is the

brand ambassador of most famous brands of India (16 to be precise). It is not that she is most

beautiful but because she is most liked, famous and most demanded at present times. So, you

need somebody who is most popular, liked and most demanded at present time to make your

advertisement most attractive. That is also a field where OLPERS has outsmarted Haleeb Milk

to grab a good potion of market share in the recent years. Frequent and timely advertisement is

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something that is concern to entire HALEEB FOODS LTD not only to their milk. 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? There is no awareness campaigns by

HALEEB FOODS as they are pioneers of UHT Milk concept, ISO certified company, 10

billions of annual turnover and serving since 26 years. There is no cross merchandise

promotion(Retail selling technique in which purchase of one item allows

an automatic discount on a different but related product) as far as HALEEB FOODS is

concerned. Firms like nestle has nicely adopted this strategy. HALLEB FOODS LIMITED

hasn’t also done a lot to improve relationship marketing approach. So, proper marketing of the

product line of HALEEB FOODS LIMITED is the need of the hour to stay up with the

competition. HALEEB FOODS really need to change itself because those who don’t change

with the passage of time have fates like SHAMANO CYCLES. You can’t succeed in the

prevailing ruthless competition without staying ahead of competition.

OTHER CHALLENGES FACED BY HALEEB FOODS LIMITED

Centralized decision making

No proper strategy formulation and lack of strategy implementation plan

No sales on credit

Baised view of consumer due to haleebs thickness

More focusing on exports as there is large opportunity in local market

Conutless departments and all have separate departments.