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Marketing Plan

HALEEB
MARKETING PLAN

T
Marketing Plan

NUST BUSINESS
SCHOOL

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

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

ACKNOWLEDGEMENTS
First of all, we would like to thank Almighty Allah who gave us the strength to
complete this report to the best of our abilities.

We would also like to thank our beloved parents and friends because without
their incessant support, we could not have completed this project.

Last but not the least we would like to thank Ma’am Zeenat Jabbar and all
our teachers for helping us out at numerous occasions and solving all our
queries related to this project.
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DEDICATION
This report is dedicated to Prophet Muhammad (PBUH) who brought the
world out of the darkness of ignorance. We would also like to dedicate this
report to all those people who do not get the kind of opportunities that we
do and are living a life of misery.

This report is also dedicated to our loving parents because whatever we are
today, it is because of them.
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EXECUTIVE SUMMARY:
The report focuses on formulating a marketing strategy for Haleeb in the
coming year. The report starts with a brief introduction of the company and
an overview of Haleeb’s main competitors in the packaged milk industry.

A detailed SWOT analysis highlights the strengths and weaknesses of Haleeb


as a brand, the kind of opportunities that Haleeb can capitalize on and the
weaknesses that Haleeb needs to overcome to survive the growing
competition in the packaged milk industry. Haleeb’s distinct sense of
ownership for the color blue and outstanding qualities like the thickest and
purest milk make Haleeb a brand worth noticing, however weak distribution
channels and a not very persuasive advertising strategy can make the
customers forget the brand as quickly as it registered itself.

A favorable macro environment is very important for efficient functioning of


any company. The PEST analysis of Haleeb emphasizes various Political,
Economic, Social factors and Technological factors that Haleeb needs to
consider while formulating its marketing strategy.

We have also discussed the segmentation techniques that we have used to


segment the market for Haleeb. AIOD framework has been used for
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segmentation and the Activities, Interests, Opinions and Demographics of


the various segments have been discussed in detail.

Further in the report we discuss how do we want to position Haleeb in the


eyes of the customers. Perceptual maps show the attributes that Haleeb is
high on and the qualities that it lacks. A positioning statement has then been
developed keeping in mind the various customer perceptions about Haleeb.

The four Ps are perhaps the most important part of a firm’s marketing
strategy. We have analyzed the Product, Promotion, Price and Placement in
detail and then given our recommendations.

The report also highlights our sales expectations for the coming years as a
result of our marketing strategies and developed a marketing budget for
both above the line and below the line promotion of Haleeb.

This marketing plan emphasizes that Haleeb as a brand enjoys brand loyalty
and has a number of strengths but to retain its customer base and survive
the fierce competition in the packaged ilk industry, it has to work a lot on its
marketing strategy and change its image in order to adapt to the changing
environment.
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COMPANY
INTRODUCTION
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Haleeb Foods was established in 1986 and its first product was Haleeb milk.
Haleeb Foods is one of the fastest growing packaged food companies in
Pakistan. Recently, Haleeb Foods has built yet another plant in Rahim Yar
Khan whose purpose is to provide Haleeb’s quality products to maximum
number of consumers. It has a very strong portfolio, consisting of leading
national and international brands – Haleeb, Candia, Dairy Queen, Tea Max,
Skimz, Tropico and Good Day. Apart from its extensive nationwide
distribution networks, Haleeb Foods is also serving several export markets
including South Korea, Bangladesh, Afghanistan and the Central Asian
states.

CORE VALUES:
• Build branded food business to improve quality of life by offering tasty,
sage, hygienically processed, affordable, highly nutritional food
products through environment friendly processes to our customers
while maximizing stake holders' value.

• Meet the requirement of all relevant legislation and regulation related


to consumer satisfaction & safety, environment and other applicable
laws etc.
• To prevent pollution through controlling levels of harmful emission,
effluents and other wastes.
• Contribute to safe and healthy environment for our country.
• Promote mutual trust with customers, suppliers, employees,
shareholders and community.
• Provide all the necessary resources for the continual improvement in
quality, safety of our products, processes and environment.
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COMPETITOR
ANALYSIS
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Haleeb introduced distinctively blue tetra packs to the market in 1986. Its
first real competition came in the form of uniquely colored triangular and
rectangular packs of MilkPak which was already there in the market since
1981.

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

GROWTH OF HALEEB OVER THE YEARS:


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2005: The market for Dairy food in Pakistan increased from 2000-2005,
growing at an average annual rate of 3.5%. The leading companies in the
market in 2005 were

➢ Nestle S.A.

➢ The second-largest player was Haleeb Foods

➢ Millac Foods in third place.

In 2006 Haleeb achieved undoubted leadership in the liquid packaged milk


category with market share of 56%. Haleeb Foods was one of the fastest
growing companies in Pakistan with reaching to revenue of US $ 120 for the
year 2006-07. The market for Dairy Food in Pakistan increased from 2001-
2006, growing at an average annual rate of 7.0%. The leading companies in
the market in 2006 were

➢ Haleeb Foods Limited.

➢ The second-largest player was Nestle S.A.

➢ Unilever in third place.

2008: Olpers has a market share of close to 22 percent—second only to Milk


Pak (estimated at 40 percent). The critics had to grudgingly accept that the
new entrant to the multi-billion rupee packaged milk category meant
business.

Following are the current market shares for some of the packaged milk
producers in Pakistan.

➢ Milk Pak (estimated at 40 percent)

➢ Olpers (close to 22 percent)

➢ Haleeb Milk 19

➢ Others 19
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SWOT ANALYSIS

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

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

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

Public Relations with farmers:


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

Owning Blue Color:


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

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

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

Haleeb Advertisement Strategy:


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

No substantial company information:


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

Packaging:
Haleeb is completely dependent on Tetra Pak for its packaging of milk as well
as other dairy products. Because of its monopoly in the packaging sector,
Haleeb has to increase its budget in order to accommodate its packaging
cost.
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Opportunities:
Increased funding by Government:
Government has increased farmer’s funding in its new budget plan. This is
an opportunity for Haleeb foods because previously due to any catastrophic
situation, it had been difficult to store milk for longer periods of time.
Secondly not enough fodder was available to feed to the cattle in order to
milk them.

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

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

Third largest producer of milk:


Pakistan is the fifth largest producer of milk in the world with a total
production of 32 billion liters of milk a year. This gives milk producers of
Haleeb an opportunity to increase their sales and exports to foreign
countries. As there is a cut throat competition among the world producers of
milk, therefore to maintain its position Haleeb should strive to deliver the
best quality milk.
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Threats:
Competition:
Despite many of the advantages over others, Haleeb milk has to face fierce
competition from its rivals in the milk industry. Many newcomers in the
market have taken the industry by storm but still there is room for
improvement. Competition seems to be getting tougher as a result of new
players like Olpers and Good milk entering the packaged milk industry.

Perceptions and Price Differentials:


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

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

Political/ Legal Factors:


The current political instability can have adverse effects on the milk
producers in the country. As Haleeb is also in involved in large scale exports
of milk to North America, South East Asia, Africa, Middle East and Eastern
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Asia, political stability and favorable tax and tariff policies, environmental
regulations are necessary to support the efficient working of the dairy
industry in Pakistan.

Around 96.5% of the milk in Pakistan is coming from the informal channel,
that is the local milkman and only 3.5% of it is processed. The informal
markets lack vertical integration. The current government is setting up
livestock business advisory centers providing animal health and artificial
insemination services which presents a good investment opportunity.
Specialized milk collection units can enhance vertical integration in the
sector.

To help increase milk collection and improve milk quality in rural areas of
Pakistan, the government has abolished duties on milk chillers of less than
3,000 liters capacity.

In the 2006-2007 budget, the government announced numerous subsidies


and tax breaks for the dairy processing industry. This includes exemption of
sales tax on packaged milk and subsidized import of processing and other
equipment.

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

The rising interest rates set by the State Bank of Pakistan has affected the
expansion projects of the packaged milk producers as well.

Other than this, the competition in the packaged milk industry is increasing
day by day, especially since the introduction of Olpers by Engro foods. The
brands already there in the market are repositioning themselves to cater to
the growing market. Many of them are planning expansion and the
competition in the market is growing tremendously.

Technological Factors:
Demonstrable experience in the field has shown that the milk yields per
animal in Pakistan can be doubled within two years through scientific
feeding, breeding, and marketing. An Institutional framework should be
established for training the farmers in scientific feeding and breeding.
Together with this, if the logistics could be set up to collect milk from the
farm door by means of refrigerated transport, milk output in Pakistan could
be doubled. Cold storages at airports could facilitate milk exports to the milk
deficit countries in West Asia, Central Asia and South East Asia.

There is a dire need of the establishment of a sound, well established


marketing chain of UHT Milk. There are a small number of cold storage
facilities in the country because of which a large amount of milk is lost and
cannot be processed. The cold storage facilities are expensive and are out of
the reach of small farmers and peasants. Secondly, the shortage of
electricity also poses a problem for the functioning of such cold storage
facilities. To process the maximum amount of milk, government needs to
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take the task of establishment of cold storage facilities on itself and take an
initiative.

Currently, most equipment for storage and processing is being imported


from Western countries in Europe, etc. This leads to greater need for in-
country expertise for the purposes of operations and maintenance. The
government should try to facilitate technology transfer options within the
region, especially between countries where operational standards as well as
pricing and affordability are at par.

Socio-cultural factors:
Milk consumption in Pakistan is very important (the highest in Asia). Pakistan
is the fifth largest milk producer in the world and its contribution to GDP
surpasses all major crops with about 50 percent of the value added in the
agriculture sector supported by livestock.
According to a recent Consumer Preference Survey (CPS) conducted,
simultaneously, by students of the leading business schools in Karachi and
Lahore, 80 per cent of people surveyed confirmed that they drink milk
regularly. The survey sample included a cross section of socio economic
groups. Milk is considered one of the prime sources of nutrition in rural and
urban areas and is a very important part of diet in all circles. But the
majority in Pakistan prefers loose milk over packaged milk due to a number
of reasons.
In order to penetrate the Pakistani market the packaged milk providers have
to work on changing the perceptions of the masses about milk. In Pakistan,
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the norm is to get up in the morning and get the fresh milk (straight from the
cow) from the ‘doodh wala’. It is a general perception that only loose milk is
fresh and free from preservatives and thus healthy. For substantial
penetration of the market, packaged milk providers have to overcome all
such perceptions and generate awareness about the safety and healthiness
of packaged milk. This will however require a lot of time and patience
because most of the people are not willing to spend additional amount of
money on packaged milk when they are convinced that it has a lot of
preservatives and is unhealthy. This culture however is changing now with
the advent of skimmed and flavored milks and there use in tea, deserts and
other beverages.
One of the factors that hinder the growth of various packaged milk brands in
Pakistan is the Price. The loose milk from dairy farms and milkmen are way
too cheap as compared to the packaged milk which is expensive. So for the
penetration of the market, the packaged milk providers need to improve
their prices too and work on cost effective treatment methods for milk.
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SEGMENTATION
ON THE BASIS
OF AIOD
FRAMEWORK
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Needs Activiti Interes Opinion Demograp Competit


es ts s hics ors
Offerings
Nutriti School, New Fads Opinions No specific Most
College, and about geographic competitors
on lots of Fashions, culture, location. Mostly offer milk that
sports, Lots of politics and students. Age: is high in Iron
entertainm hanging education Infants to 18. and Calcium.
ent sources out, Junk are mostly
include T.V, Food. based on
internet observation.
etc.
Tea- Mostly Like to Have firm The age group Olpers and
working spend opinions starts from 20 Milk Pak have
drinki class, tiring time with about onwards but repeatedly
ng schedules, family and politics and specifying an emphasized
long friends, culture. upper limit is themselves as
working traditional Opinions difficult. the best milk
hours, food. about for tea.
active in different
social and products are
cultural hard to
events. change.
Habitu Ranges Usually Try to own Income varies The quality
from the family their culture, both rural as and thickness
al- working oriented plan about well as urban of milk varies
drinki class to the interests. the future, population. among
ng retirees, interested in Family size different
not usually politics and varies too. brands being
very active economics. offered.
in sports.
Ice- School, Spend Their Usually the The offerings
College more time opinions urban by competitors
cream and hanging about teenagers, kids are mostly
and university, out with culture, and university identical.
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shakes social friends religion, students. Family


events than with different size is not very
include family, are products are large and varies
concerts usually up ever from 4 to 10.
etc wide to date changing.
ranging with They are
hobbies current usually more
from trades prone to
watching and change and
movies to fashions. their
surfing the opinions are
net. governed
more by
logics then
upbringing.
Traditi Working Prefer Their The demos vary Identical
class, traditional opinions are widely. We offerings by
on-al students, Pakistani usually cannot specify a Olpers and
Desert retirees, food, governed by specific age Milk Pak.
s children, cultural traditional limit, education
social and influence and cultural or rural and
cultural in fads mindset. urban
events and boundaries.
include fashions
Eids, are
weddings evident.
etc

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


different dairy products. There are many other competitors along with the
Haleeb milk in the market. These are:

➢ Olpers
➢ Nestle Milk Pak
➢ Nurpur
➢ Good Milk
➢ Others

All of them have positioned themselves in some unique way so as to get a


competitive advantage over the other.

There are many attributes or dimensions related to the product space of


Haleeb in the milk industry. Through these attributes Haleeb milk can be
positioned on different perceptual maps amongst its competitors.

Following are some of the attributes for Haleeb milk and its competitors that
can also be mapped at different perceptual positions.

Price vs. Promotion


Packaging vs. Distribution
Pure milk vs. Thick milk
All purpose milk satisfaction vs. versatility
Good for health vs. Emotional involvement in taglines

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

PACKAGING VS DISTRIBUTION:
Packaging of Haleeb milk in blue color is quite different and distinctive from the
typical red and green packing used by other competitors. The packaging of
Haleeb became more distinct and was readily recognized by its customers when
other new comers entered the market and launched the product with the color
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different from Haleeb milk. The distribution strategy of Haleeb milk is not as
strong as its other competitors’. The reason is that there are very few distributors
for Haleeb milk as the competitors have taken larger shares for this in the
market.

PURE MILK VS THICK MILK:


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


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


Haleeb milk has emphasized from the beginning on the marketing strategy that
promoted their product vitally to be used for tea purposes. To gain a large
percentage of the market share the competitors of Haleeb Milk have focused
their marketing strategy mainly on the purity and naturalness of milk that
definitely leads to healthy lifestyle. Haleeb has been targeting the customers
from the beginning that are either very particular in making good tea or using
thick milk for preparing desserts.
There is always an emotional attachment associated with brands nowadays.
Haleeb along with Olpers has tagline strong enough to attract its target market.
So, it can be said that Haleeb milk tagline has played a major role in positioning
Haleeb as a powerful brand.
Therefore the Haleeb with all other competitors can be positioned at the same
point on the perceptual map.
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THE FOUR Ps
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Product:
Haleeb milk is one of the products under the umbrella of Haleeb foods. It is
pasteurized, homogenized and standardized UHT milk with 3.5 % fats and
8.9% solid non-fats. Haleeb is packed in easy to open, 6-layered Tetra Pack
Brick Aseptic packaging and it comes with a three months shelf life.

Milk is collected from approved dairy farms ensuring quality standards. The
milk passes through 8 different tests before it is approved.

Over the years, Haleeb has positioned itself as the best milk for tea with the
taglines “Chaye banayay doodh Haleeb, sub se gaarha doodh haleeb”
and “gaarha jo hai”. Haleeb identified a basic need of the customers and
then worked on it because of which Haleeb proved to be an instant success.

In order to meet the competition more effectively, Haleeb should work on


improving the quality of its milk. We can do this by improving the milk
formula and introducing added features likes calcium and iron. This would
make Haleeb milk healthier. As these days Nestle Milk Pak, one of its major
competitors has already launched Nestle Milk Pak with more iron.

In the light of product life cycle it can be seen that the milk industry in
general is in between growth and maturity whereas Haleeb milk in particular
is at early maturity. So at this stage there is maximum brand awareness
about our product. So there is a lot of potential in this product and if
marketed in an effective way this could be a real success for us

It is packaged in three sizes namely:

1,000 ml /12 packs carton


500 ml / 12 packs shrink-wrapped tray
250 ml / 27 packs shrink-wrapped tray
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All these sizes are the same as that of its competitors. The main aim of
packaging milk in these three sizes is to make it more convenient for the
different segments of customers.

At present we do not propose any major change in the packaging of Haleeb


milk except the introduction of disposable caps instead of the tear-open flap
to make the packaging more convenient. Right now, the package contains
the benefits of naturally thick milk like strong bones and teeth, faster growth
and health for kids, stronger muscles, hair and nails and improved eye sight.
The package highlights the fact that Haleeb is rich in Vitamin A, Vitamin D,
Proteins and Calcium. Other than this, the package emphasizes that Haleeb
has a proud heritage of training over 200,000 dairy farm owners to select
the best breed of buffalos and develop specialized fodder. Premium quality
fresh milk is then self-collected from these farms to ensure its natural
thickness. On the package, Haleeb claims that nothing can beat a cup of tea
made with Haleeb. A telephone number of Haleeb Care line is also there on
the package which shows how much Haleeb values its customers.

After improving our product and making it more nutritious we should


highlight this fact in our packaging like Milk Pak highlights the added iron on
its package.

The corporate color of Haleeb is blue and Haleeb had tried to own the color
over the years but recently Haleeb has added green color as well to add a
Pakistani touch to the packaging because Milk Pak uses green and white
packaging which has established it as a true Pakistani brand.

In order to make our customers feel more affiliated we can also adopt the
packaging strategy of havingdifferent Packages for different festivals. We
can have special packages for different occasions Eid, Ramzan etc.
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Price:
The packaged milk market in Pakistan is becoming highly competitive day by
day and in order to effectively deal with this competition, Haleeb uses
competitive pricing. At present there is cut throat competition between
Haleeb, Milk Pak and Olpers. The main reason for such a degree of
competition is that the product in this case is the same. Secondly most of
the customers are price sensitive so any increase or decrease in the prices
of Haleeb would directly affect its sales.

Brand 250 ml 500 ml 1000 ml


Haleeb Rs.16 Rs.32 Rs.55
Milk Pak Rs. 16 Rs.32 Rs.55
Olpers Rs. 16 Rs.32 Rs.55
Source: Market Survey

In order to make Haleeb a real success in the market we can propose a


number of improvements in the pricing strategy.

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


schedule can be used for determining the amount of discounts.

Size Normal Price Discount Price


1,000 ml Rs.55 Rs.53
500 ml Rs.32 Rs.30
250 ml Rs.16 Rs.15

By giving this discount Haleeb would lead its competitors. Eventually its
competitors would also respond by lowering their prices but by the time they
do so it would be too late. Secondly this would help Haleeb improve its
image in the mind of its both present and potential customers.

Other than this, Haleeb can show its affiliation with the Pakistani society by
giving special discounts on important occasions like Ramzan and Eid.

Bundling:
This is another option for Haleeb Foods. They can make special
bundle packs of milk paired with Haleeb cream, butter or yogurt other than
the ordinary milk packages. This will not only increase the demand of Haleeb
milk but also the other products which are being bundled with milk.

In this case its competitors might also respond in the similar way. Milk Pak is
owned by Nestle which has multiple product lines, so bundling would be
easier for Nestle .However in the case of Olpers bundling would be a little
difficult because of their limited product line.

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

Above the line:


TVCs
Recently, Haleeb has aired a couple of new TVCs but the frequency is not
enough to register the newly repositioned brand so it needs to go for new
TVCs and print ads. These advertisements
should emphasize the uniqueness of Haleeb
milk. Secondly this TVC should help Haleeb
re emphasize itself as an all purpose milk
not just as a tea whitener. Haleeb till now
has used the cultural factor in its TVCs
however we think Haleeb should use its
nutritional appeal as a means of attracting the audience.

The TVCs should use the thickness of Haleeb and the added features such as
more vitamins, calcium etc as its USP (unique selling proposition). The TVCs
should also show blue as Haleeb’s corporate color. This advertisement
should use a slice of life as the executional frame work. Health and
convenience appeal should be use.

We also propose that Haleeb should have new TVCs on different occasions
including both religious and national ones so that the customers should
know that Haleeb is a part of their lives.
Marketing Plan

At present only Olpers is engaged in massive


TVCs. It airs different TVCs showing the
significance of different occasions (like the
Ramadan TVC).

So if Haleeb also starts its massive promotional


campaign through TVCs then initially both might
not react and use the policy of wait and see.
However if they see that this promotional
campaign has led to an increase in the sales of Haleeb then they would also
start extensive advertising.

Below the line:


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

Print:
It should also go for newspaper advertising. In this case it can go for a series
of newspaper adverts. This series should be started before starting the TVC
and then these print ads should be complementing the TVCs.

If Haleeb uses any new strategies like bundling or discounts, they should be
highlighted extensively using the print ads and TVCs

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

Wrapped Around Vehicles:


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

Free Samples:
We can make special packets of Haleeb and distribute it as free samples to
the masses. This would motivate our potential customers to try our product
and make it a part of their life style. One of our competitors Olpers has
already used this technique..

Haleeb can also start giving Haleeb refrigerators to different small retail
shops. They should also provide their own shelves which would be
distinguishable from other brands. This would further improve Haleeb’s
below the line promotion.
Marketing Plan

Placement:
Haleeb uses an indirect channel of distribution. The main reason for using
this indirect channel is that Haleeb is a consumer product and its customers
are spread throughout many geographic locations in Pakistan. At present its
placement and distribution strategy is not at its best and can be improved.
So we plan to improve our relationship with all the intermediaries involved in
the distribution channel of Haleeb. Haleeb should try to build more personal
and strong relationship with wholesalers and large scale retailers who are its
direct customers.

Haleeb should try to increase the profit margins of the wholesalers and
retailers. This would encourage them to stock Haleeb. Secondly we want
that Haleeb should maintain sufficient stock levels with its wholesalers and
retailers.

In order to improve its relationship with the wholesalers and retailers Haleeb
can also go for certain schemes with them, such as providing them with
Haleeb refrigerator and displays shelves at point of sale. This would make
Haleeb more visible to the customer and might eventually drive them to
make a purchase.
Marketing Plan

Haleeb should also to go for extensive distribution this would ensure that
Haleeb is within the reach of its customers. We should try to ensure that
Haleeb is equally available in urban and rural areas. This intensive
distribution would help Haleeb become every ones’ milk.

Both Nestle and Olpers also have a strong distribution channel and in the
future also they will try to improve their relationship with wholesalers and
retailers, as otherwise they would not be able to survive in the market.
Marketing Plan

MARKETING
GOALS AND
BUDGET

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

First Quarter Second Third Quarter Fourth


Quarter Quarter
Sales 2% increase 3% increase 2.5% 1% increase
Revenue increase
The given sales forecast also takes into account the inflationary concerns
and the fact that because of fierce competition, Haleeb cannot raise its
prices. So for the revenue growth, Haleeb has to expand its customer base.

MARKETING BUDGET:
We have developed the following marketing budget for Haleeb for the first
quarter of the next year. The budget for the next year should then be
developed on the basis of the audience’s response to the ad campaign.

MARKETING ACTIVITIES EXPENSES


Production of 3 New TVCs Rs. 4,500,000
Print Ads Rs. 4,000,000
Bill boards Rs. 7,500,000
TVCs aired on different occasions Rs. 10,000,000
Marketing Plan

Radio Advertisements Rs. 1,000,000


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

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

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

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