HALEEB FOODS

History

Haleeb food was established in 1986 and its first product was Haleeb Milk. Since, then it
has continued to provide quality products to its consumer with product and packaging
innovation other products.

Haleeb foods in Pakistan’s number and fastest growing packaged food company.
As of fiscal 2006, its annual turnover is Rs. 9 billion. Recently, Haleeb food has built yet
another plant in Rahim Yar Khan whose purpose is to provide Haleebs quality products
to maximum number of consumers.

Summary

Haleeb foods was established in 1986 and its first product was Haleeb Milk. Now
in this project we study distribution channel of Haleeb milk. Haleeb foods provide
different service output to their customer like bulk breaking, special convinces, waiting
time, assortment & variety, information provision and services. The activities or
functions that produce the service outputs demanded by consumer are physical
possession, promotion flow, negotiation, financing risking, ordering and payment. Then
there is a gap analysis in which demand and supply gaps are identified and then closed.
Furthermore, power and conflict in channel are also talked.

DISTRIBUTOR CHANNEL OF HALEEB MILK

Marketing Channel

A marketing channel is a set of interdependent organizations involved in the

process of making a product or service available for use or consumption.

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 Channel segmentation Channel Implementation

Channel structure Channel power channel conflict

Splitting the workload Manage/Defuse conflict

Degree of commitment Goal

Gap analysis

Segmentation means the splitting of a market into groups of end users. Segments
are best defined on the basis of demands for the outputs of the marketing channel. Service
outputs include bulk breaking, waiting and delivery time, assortment and variety,
customer service and product\market\usage information provision.

Bulk Breaking

Bulk breaking refers to the end-users ability to buy that desired number of units of
a product of services

Haleeb foods available at different sizes according customers requirement e.g

Haleeb milk 1 liter ½,1/4 liter etc

Spatial conveniencespa

Spatial convenience; product is available at close the resident of customer and

reduce transportation requirement and search costs.

Haleeb is available at close the customer resident and customer purchase easily
anywhere.

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Waiting time

Waiting time of Haleeb products is very low.

Assortment and variety

Variety describes generically different classes of goods making up the product

offering .that is, the breath of product lines

Assortment, on the other hand ,refers to the depth of product brands or models
offered with in each generic product category.

Product lines

Dairy product Juices UHT milks

Asli Desi Ghee Fun Day Haleeb milks

Haleeb butter good day Dairy Queen

Haleeb cream tropic juice drink Candia milk

Haleeb yogurt Haleeb Labban Haleeb Skims Liquid

Tea max Tropico Nectar Haleeb Skims Powder

Cheddar chees Candy Up

Haleeb tea max Haleeb Gold

Haleeb Haleeb Bottle Haleeb Extra

Energy Milk

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 Haleeb Extra Liter

Information Information on provision refers to education of end-users about product

attributes or usage capabilities or pre purchase and post purchase services.Haleeb foods
provide information to their customer though advertisement, mail packaging free
helpline. They provide information to their customer about product features, their usage,
new product launching and any problem that customer face. They solve the customer
problems through Toll free helpline.

ServicesCustomer service refers to all aspects of easing the shopping and purchase
process for end-users.Haleeb foods provide quality services to their customer maintaining
relationships with them provide toll free helpline. no other milk company provides toll
free helpline.

Channel Structure

Knowing the interesting of demands for service output by different segments in

the marketing and different channel may be required by each segment’s set of service
output demands and this channel’s design involves three main elements.

1- Channels designer must decide who are to be the members of the channel.
2- 2- Exact identity of channel partner.
3- How many of each type of channel member to include in the channel.

Manufactures

Distributor

Wholesaler

Retailer

Consumer

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 Haleeb milk manufacture in the company and supply to the distributors outlet at
the Ferozepur road and others distributors in different areas of the country. Through
distributors its supply to the whole seller like Macro and then supply to retailer like
Metro and ultimately supply to customer.

CHANNEL FLOWS PERFORMED BY HALEEB

The activities or function that produces the service outputs demanded by end-
users are the channel flows. Every flow not only contributes to the production of valued
service outputs but also carries an associated cost. Now we see how Haleeb perform these
flows.

Physical possession

Refers to all channel activates concerned with the storage of goods, including
their concerned with the storage off goods, including their transportation between two
channel members.

Haleeb is have in its warehouses with maximum capacity it collects the fresh milk
form farmers in for remote areas then give it preliminary treatment in its warehouse.
These centers are situated at Lahore, Karachi, Rawalpindi, Gujranwala, Faisalabad etc.

Promotion flow

This flow involves all types of activities though which people get averred of the
products personal selling, advertising, sales promotion etc.

When we see how Haleeb participate in promotion flow advertising, mail,

briefings to whole sellers school activities can be distinguished. Brand equity is also
enhanced by offering free milk packs in different hospitals.

Negotiation flow

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 This flow occurs when ever terms of sales, of maintenance, of the ongoing
relationships with the market are discussed and decided.

Haleeb has its agreements with its distributors in black and white. Every thing is
predefined relate to exchange terms. It is not using coercive and legitimate power reward
power expert power is in use.

Financing flow

It involves the cost related to sale from one level of the channel to another.

Haleeb is fulfilling this flow by offering cash sales and credit sales on credit terms
of 3 days.

Risking flow

This flow holds the guarantees, warranties, insurance, repair and after sale
services.

Company is having an excellent reverse logistics system to take the spoiled milk
packs back and the whole cost is bared by the company.

Ordering flow

It includes the process of ordering.

Haleeb is offering electronic data exchange though which orders are received and
fulfilled efficiently.

Payment flow

The activities regarding collection bad debt handling are involved in this flow.

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 Company does not bear any bad debts annually and cheques are submitted by the
distributors at head office.

Degree of commitment

Distributor channel member committed to the company through distribution

alliance.

Gap analysis

The differences between the optimal and actual channels constitute gaps in
channel design.

Gaps can exist on the demand side or supply side.

Source of gap

We concentrate on two such sources

1-Enviromental bounds

2-Managerial bounds

Demand side gap

Demand side gap exist when

SOS<SOD

SOS>SOD

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Information Provision SOS>SOD

When customer needs some information, company premises the efficient

provision of information through tell free numbers. But when customers are surveyed
about this service they are not formed satisfied. They gives responses like, No one picks
the phone”. “Call is hanged for unlimited time”. Etc.

Supply Side Gaps

Total cost of performing all channel flows is jointly too high.

Reverse Logistics

Company says it beams the whole cost of revenue logistics. On contrary down
stream channel members say they bear the whole cost. But the fact is that revenue
logistics flow is not performed effectively. Downstream members dispose of spoiled
product and do not send that back. If they do so company is ready to replace the products.

CLOSING GAP

Demand Side-Gap

Company says it is providing information through online links, which are the
differentiation factors from competitors. But the information is not provided when
required.

Supply-Side Gap

Company should compels the downstream members to send the spoil product
back to the company.

Power

Power is the ability of channel member

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 a) To get channel member
b) To do something its otherwise would not have done.

Haleeb is using two kinds of powers what are?

Expert Power

It is based on the targets perceptions that the influence has special knowledge,
expertise, that is useful and that the target does not posses itself.

Reward Power

Reward is a benefit given in recompense to a channel member for altering its

behavior.

Conflict

Channel conflict is behavior by channel member that is in opposition to its

channel counterpart. It is opponent central and direct, in which the goal or object sought
is controlled by the counter part.

Negotiation is proved to be a conflict after a field survey.

How to Diffuse Conflict

Company needs to negotiate with the downstream members on the terms that are
acceptable for both parties.

Reference

www.haleebfoods.com

Kashif Ali, Brand Manager, Haleeb Foods

Muhammad Shoaib, Sales Officer, Haleeb Foods

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Muhammad Ahmer, Marketing Officer, Haleeb Foods

Mahmood Ali, Sales Man, DECENT DEPARTMENTAL STORE

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