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P R O J E C T
of

S T R AT E G I C M A R K E T I N G M A N A G E M E N T

Submitted to:
MR. MOBIN UL HAQ

Submitted by:

Muhammad Qayyum REHMAT ID # 053632-022


Shamshad Irfan CHATHA ID # 053632-006
Awais AHMED ID # 053632-009
Muhammad Ayyaz SHAH ID # 053632-057

MBA-P Sec:A Batch:36

UNIVERSITY OF MANAGEMENT & TECHNOLOGY


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B est M ilk at L ow
P rice

D A I R Y Q U E E N
UHT MILK

A Product of
HALEEB FOODS
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ACKNOWLEDGEMENT

In the name of Allah most merciful and beneficent.

We are very thankful to Allah Almighty who gave us the opportunity, courage and
insight to explore more knowledge to complete this project and for His blessings that has
brightened every part of our lives. In writing this project, we were guided by our experience and
interest in Strategic Marketing Management. Beyond of all the material available we are
thankful to our respected resource person “MR. MOBIN UL HAQ” for giving us such a deep
knowledge about the subject that made “Strategic Marketing Management” a very interesting
subject. That is possible due to his very unique style of teaching we ever experienced during our
academics. And through his motivational behavior we were able to complete this difficult task.
We are also thankful to our beloved parents who have always provided us guidance and
they have always been source of inspiration for us. Along with the assistance and guidance from
our resource person “MR. MOBIN UL HAQ” and our parents we have been able to complete
this project and we found it very interesting and it helped us to explore our knowledge about the
subject.

Muhammad Qayyum Rehmat


Shamshad Irfan Chatha
Awais Ahmed
Muhammad Ayyaz Shah
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Table of Contents

PROJECT.........................................................................................................................................1
ACKNOWLEDGEMENT...............................................................................................................4
EXECUTIVE SUMMARY.............................................................................................................7
ENVIRONMENT OF DAIRY INDUSTRY...................................................................................9
DAIRY INDUSTRY ISSUES...................................................................................................11
INDUSTRY DEFINITION....................................................................................................12
BROAD DEFINITION..........................................................................................................12
NARROW DEFINITION......................................................................................................12
CORE.....................................................................................................................................13
BASIC....................................................................................................................................13
AUGMENTED .....................................................................................................................13
POTENTIAL MARKET........................................................................................................13
HALEEB FOODS..............................................................................................................15
PRODUCT LINE...............................................................................................................16
SITUATION ANALYSIS.................................................................................................22
MARKET DEMOGRAPHICS..................................................................................................23
AGE.......................................................................................................................................23
GENDER...............................................................................................................................23
EDUCATION........................................................................................................................23
FINANCIAL BACKGROUND.............................................................................................23
FAMILY TRENDS................................................................................................................24
MARKET NEEDS.....................................................................................................................24
SELECTION..........................................................................................................................24
ACCESSIBILITY..................................................................................................................24
PEST ANALYSIS.....................................................................................................................24
ECONOMICAL.........................................................................................................................26
SOCIAL.....................................................................................................................................27
TECHNOLOGICAL..................................................................................................................27
PORTER FIVE FORCES..........................................................................................................28
THREAT OF NEW ENTRANTS..............................................................................................28
BARGAINING POWER OF SUPPLIERS...............................................................................29
BARGAINING POWER OF CUSTOMERS............................................................................29
THREAT OF SUBSTITUTES..................................................................................................29
INTERNAL RIVALRY.............................................................................................................29
PEST V POTER (Summary).................................................................................................30
SWOT ANALYSIS...............................................................................................................30
STRENGTHS............................................................................................................................30
OPPORTUNITIES.....................................................................................................................31
COMPETITOR OF HALEEB FOODS.....................................................................................31
NESTLE MILKPAK ............................................................................................................33
NESTLE'S MILK SOURS IN PAKISTAN.......................................................................34
MARKETING & SALES..................................................................................................39
NESTLÉ PRODUCT LINE.......................................................................................................40
CUSTOMER ANALYSIS.............................................................................................................44
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CVA...............................................................................................................................................44
INTERNAL FACTOR EVALUATION........................................................................................45
STRENGTHS............................................................................................................................45
WEAKNESSES.........................................................................................................................47
EXTERNAL FACTOR EVALUATION.......................................................................................48
OPPORTUNITIES.....................................................................................................................48
THREATS..................................................................................................................................49
GE MATRIX.................................................................................................................................50
TOWS MATRIX...........................................................................................................................51
NEW MARKETING STRATEGY................................................................................................52
DEVELOPMENT WITH STRATEGY.....................................................................................52
Requirements.........................................................................................................................52
Expected results.....................................................................................................................52
PRODUCT STRATEGY ..........................................................................................................52
(PRODUCT REPOSITIONING STRATEGY).........................................................................52
Definition...............................................................................................................................52
Objectives..............................................................................................................................52
Requirements.........................................................................................................................53
Expected results.....................................................................................................................53
PRICING STRATEGY .............................................................................................................53
(MAINTAINING THE PRICE)................................................................................................53
Definition...............................................................................................................................53
Objectives..............................................................................................................................53
Requirements.........................................................................................................................53
Expected results.....................................................................................................................54
POSITIONING STRATEGY ...................................................................................................54
(AGAINST USAGE AND ITS BENEFITS).............................................................................54
Definition...............................................................................................................................54
Objectives..............................................................................................................................54
Requirements.........................................................................................................................54
Expected results.....................................................................................................................54
PROMOTIONAL STRATEGY ................................................................................................54
Definition...............................................................................................................................54
Objectives..............................................................................................................................54
Requirements.........................................................................................................................55
Expected results.....................................................................................................................55
SUMMARY ..................................................................................................................................55
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EXECUTIVE SUMMARY
Dairy Queen Milk is a product of Haleeb Foods. Haleeb Foods is a largest company in
Pakistan’s dairy industry. Haleeb Foods is one of the organization competing in the UHT Milk
industry. There is a big room for development in dairy industry in Pakistan. UHT milk although
costly but people know about the milk importance and its quality. Now, there are many products
are available in the market regarding UHT milk but Haleeb found that there is a gap between
upper class and lower class, so, Haleeb decided to introduce lower price milk with best quality
and UHT treated milk for those whom can not afford high price milk. Dairy Queen is Haleeb
another standardized and homogenized pure UHT Milk with 3.5% fat and 8.9% solid non fats. At
an affordable price it has won the hearts of consumers everywhere. It is available in 6-layered
Tetra Pak Fino Packaging, introduced for the first time in Pakistan and has 2 months shelf life.
Government of Pakistan is now focusing on dairy industry.
R&D department of Haleeb Foods is continuous watching the market trend and the
development in dairy industry. Strategy of the dairy queen is to provide UHT milk for those
whom cannot afford high price milk and capture the share of the market. Dairy queen milk has
no competitor in terms of actual condition of the packaging and price. So, we can say that there
is no strategic group of dairy queen milk. It is unique product available in the market with its low
price positioning.
Government polices makes it easy to enter in this market but technology, availability of
raw milk, and process makes it difficult for the up coming companies in this industry. Although,
middle and lower class is the target market of the dairy queen but its quality and packaging
attract the upper class as well. UHT treated milk is dependent on the production of the healthy
animals and availability of raw milk. As the competition is concerned, there are many
companies in the particular industry and they are competing with each other with price,
positioning, packaging and availability.
This is time of advertising because when customer knows about your product then he will
be welling to purchase that product. Haleeb Foods Limited has hired Red Communication Arts
as their new advertising agency which will be handling the following accounts: 1.
BEVERAGES: Haleeb Good Day, Haleeb Funday, Tropico, Tropico Nectar, Candia, Candy Up,
Haleeb Labban 2.Corporate account. Now, mostly companies are using these tools to promote
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their products and image as well. Total share of packed milk is 4% and 96% is for loss milk.
Turnover of Haleeb is 9.2 billon. Haleeb Rashmi is also providing profit to the company because
this is low cost product and it has its own packaging. It’s daily sale is 11000 litter per day. As
market share is concern, Haleeb got 44% last year, Nestle 43%, Good Milk 4.5% and Norpur
10% last year. So, Competitor of Haleeb is Nestle because there nick to nick competition.
Nestle has long rang product line as compare to Haleeb. When we talk about the gaps
there is a gap in the implementation gap in strategies. Availability gape and awareness gape is
still there and now company is going to eliminate these gapes. As we know that industry growth
rate is 25% in the dairy industry. Now, the company’s focus is on the gross profit and company
is doing the things to increase the gross profit. The cities which are very important in terms of
sale share are Multan, Sahiwal, Fasil Abad, Gujranwala, and Rawalpindi. These cities are
providing 60% to 70% sales of Haleeb.
There are some problem from the customer side and distributor side. Dairy Queen has
fino packaging and its shape is not convenient for the customer. It has three lair packaging so,
leakage problem is from the distributor side.
Now, the best strategy is penetration in maximum household and increase the awareness
of the brand. This will be possible through activities and promotions. Tactical advertising will be
best for the promotional activities of the Dairy Queen.
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ENVIRONMENT OF DAIRY INDUSTRY


INTRODUCTION
Dairy farming is an agro-based activity, buffaloes and cows can be raised for milk
production in an organized manner for commercial purpose. For this project, animals can be
purchased from the animal markets or breeders in Sahiwal, Sheikhupura, Faisalabad. More than
70 percent farmers hold less than 5 acres of land. Dairy farming may prove a profitable business
for small landholders. They can also grow fodder on their land to feed dairy animals, without
disturbing the main crop. Dairy farming is one of the best projects if professionally done on
small land holdings. The return of the land used for feeding animals is higher as compared to
land used for traditional cropping. The economical size of the herd is 50 animals, which will
grow into 180 animals within a few years. Cows are also proposed in the herd, as they are high
yields and efficient converters of feed into milk. This herd would consist of 75 percent buffaloes
and 25 percent cows. A cow, on average, yields 14 litters milk a day over a lactation period of
305 days whereas the buffalo, on an average, yields 10 litters a day over a lactation period of 280
days. Pakistan is the fifth largest milk producer in the world. Milk production is 28 million
tonnes from 125 million heads. Milk is used for drinking, tea, desi ghee, yogurt and butter
making. Milk is also used to make Khoya and different types of sweets. Milk processing
companies use milk as a raw material to formulate different types of milk for example
pasteurized milk, UHT milk, condensed milk, skimmed milk, milk powder, etc. Different value
added products like yogurt, ice cream, butter and cheese are also produced from the raw milk.
The daily consumption of milk in Lahore is 2 to 3 million litters and that of Karachi is 4
million litters. The demand for processed milk has increased its share in quality conscious
consumers. During the last two decades, processed milk has achieved 4 percent share in the milk
market of Lahore, which is growing to about 4.5 percent per annum. Therefore, metropolitan
cities are the major markets for the sale of milk. With the every passing day, dairy products are
becoming costlier because live stock farming has not scientifically grown with the increase in
population and also it did not match with the pace of urbanization. Recently, milk prices in
Karachi increased without any reason. In a short time of two years, milk prices have gone up
from Rs 20 per liter to Rs 25, showing a 25 percent increase. Moreover, meat prices have also
risen to about 25 percent in the last six months. In such a situation, the only way to control prices
is to develop the dairy industry on scientific lines, which will not only provide meat and milk in
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abundant quantities to the domestic consumers but extra quantities can also be exported. In spite
of having a large population of livestock, the country is spending some $40 million annually on
the import of formula milk only, which is the highest amount spent by any country in the world
on this particular commodity. Currently, there are some 160 varieties of infant formula milk
available in the markets.
“The milk processing companies have reduced supply of their tetra pack milk products in
the domestic market for last couple of weeks in an apparent bid to increase the prices of
processed milk on the pretext of short supply. According to market sources, milk-processing
companies working in formal sector including Nestle, Haleeb, Dairy Queen, Pakola, Olper, and
Good Milk had increased prices of their milk products on September 15, 2005 from Rs34 per
litter to Rs35 per kg. Later on, these companies raised processed milk rates on February 6, 2006
from Rs35 to Rs36 per litter in retail market. “It was the second consecutive upward revision in
prices by these companies in a short span of four months,” General Secretary Karachi Retail
Grocers’ Group Fareed Qureshi told The News. “There is no autonomous authority or effective
institution in the country to protect rights of consumers and to check frequent and unjustified
price hike of different commodities. Neither Monopoly Control Authority (MCA) - now renamed
as Competition Authority - nor local governments took stringent measures against hoarders,
adulterators and profiteers to safeguard the interest of consumers,” a consumer said. Some three
months back fresh milk sellers increased prices from Rs28 per litters to Rs30 per litter at retail
and Rs26 to Rs28 per litter at wholesale level despite repeated warnings by the City District
Government Karachi (CDGK), who fixed official rates of fresh milk at Rs26 at wholesale and
Rs28 per litter at retail. A market source said in the past whenever these companies increased
prices of their products they curtailed their supplies as a first step and then increased prices.
Though Pakistan is the fifth largest milk producer in the world producing around 28 billion litres
of milk annually, it is still importing milk powder and condensed milk. Out of total production
only 5 percent milk is processed on hygienic lines whereas shelf life of the remaining 95 percent
un-processed milk is very short and due to unavailability of proper storage facilities most of milk
produced goes waste.
Government has allocated around Rs230 million for development of dairy industry in
fiscal budget 2006-07. The sector has been allowed duty free import of dairy and livestock-
related machinery and equipment (not manufactured locally). Moreover dairy sector has been
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exempted from sales tax besides of withholding tax. In order to reduce the cost of packaging of
dairy products, the duty on imports of raw materials and intermediary goods used in the
manufacture of packaging material has been reduced to 5 percent.”

DAIRY INDUSTRY ISSUES


“LAHORE: Experts and representatives of leading players from private sector
addressed various issues pertaining to dairy industry at a seminar on "Dairy Farming for
Profit" here on Monday. The seminar was organized by the Pakistan Dairy Development
Company, commonly known as Dairy Pakistan and Pakistan Initiative for Strategy
Development and Competitiveness (PISDAC), a project for private sector development in
Pakistan, funded by USAID. Speaking on the occasion, Anthony Christiansen, the CEO of
Dairy Pakistan, said that Pakistan is the third largest producer of milk in the world with a
total production of 32 billion liters of milk a year. This makes its value even higher than the
combined value for wheat and cotton. To boost this vital sector, he added, a number of
initiatives are underway, including milk collection and chilling projects, Joint Milk Collection
Pilot Projects, research and capacity building and many more. He further said, "We are also
working on safety standards, dairy sector research work and strategy development by
evaluating the significance of the sector in terms of contribution to GDP, employment and
importance to serve as a vehicle to alleviate poverty especially among the rural population."
He informed the audience that these initiatives were being taken in line with the
recommendations of a Strategy Working Group (SWG), which was constituted by Federal
Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen, to develop
Diary Sector Development Strategy. Faisal Farooq, Chairman Dairy Pakistan, highlighting
various milk-marketing options, said that to improve the dairy sector, we are emphasising
on close coordination with key stakeholders across the dairy value chain as well as with
partners from educational institutions, government and private sector.
The Head of Agriculture Wing, Bank of Punjab, Moazzam Maneka briefed the
participants on the financing tools and options available for the dairy and agriculture sector.
The dairy farming experts and representatives of many leading players from private sectors
also spoke on the occasion and discussed at length the issues related to the dairy industry
including, milk marketing options and potential for dairy farming on a larger scale.
Dr M Ashraf from Nestle Pakistan enlightened the audience on issues relating to animal
health, farm layouts and shed designs and other speakers emphasised that dairy farming
could be very profitable if full attention was paid to important factors such as employment
of skilled farm management, high quality feed and breeding cows with high production
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capabilities. The seminar ended at a positive note with high hopes for the development and
growth of the Pakistan’s dairy sector.”

INDUSTRY DEFINITION
BROAD DEFINITION
When we look into milk industry as a broad definition, this industry operates in a fashion
where raw milk is distributed in two main streams.
 Open
 Packaged
This open milk is further distributed and transferred to different areas, which include the
same area of production, households, urban and rural areas. Packaged milk is further processed
through different types of processing techniques to produce different categories of packaged milk
that will be categorized and defined in our narrow definition of milk industry.
NARROW DEFINITION
Focusing towards our main industry and closing down our definition more narrow, we
see that packaged milk being broken down to different categories starting from UHT milk,
pasteurized milk, poly-pack milk, bottled milk, etc. Therefore, the industry which we have taken
in narrow definition is packed UHT milk.
UHT means Ultra Heat Treatment. In this process the milk passes through 140 degree
centigrade in 3 seconds and then immediately cooled to 20 degree centigrade in the next 5
seconds, which in turn kills all the bacteria. This is the most sophisticated and advanced process
in the world. At Haleeb Foods Limited we use the indirect method of UHT meaning that milk is
heated by steam passing through stainless steel pipes outside milk. All other brands in Pakistan
use the direct method of heating that is by injecting steam in the milk, this adds water content in
the milk, where as indirect heating in fact evaporates water from the milk.
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PRODUCT COMPONENT MODEL

Core Basic Augmented


Milk UHT Milk Flavor Milk

CORE
The core product or benefit is milk associating energy and health for all ages of people, men
and women.
BASIC
Basic product is something that is sterilized and pure to use, so we can say that UHT treated
milk is a basic form of our core product. As its containing the factor of purity and safe
ingredients with preserved milk quality and features.
AUGMENTED
UHT milk is now coming with different flavors for the kids, then it has also been augmented
through different packaging that are being used by different companies, trying to get potential
out of UHT milk market.
POTENTIAL MARKET
UHT treated milk can be given with some extra hygienic ingredients such as nuts and other
energetic ingredients to make it more hygienic and healthy to use product.
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FLOW OF MILK & CHANNELS


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HALEEB FOODS
COMPANY PROFILE
Building an excellent reputation over the years, Haleeb Foods continues to be at the
forefront of product and packaging innovation. By the grace of God, it has achieved market
leadership in several food categories with 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. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s
novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Haleeb
Foods has also introduced a number of unique products previously unknown to the Pakistani
market, like Haleeb Labban, delicious traditional lassi (buttermilk) prepared with pure thick milk
and yogurt, Candia Tea Max, cardamom flavored tea whitener, Candia milk, packed in
distinctive food grade plastic bottle, and Haleeb Good Day, 100% pure and natural fruit juice,
free of added sugar, artificial flavors and preservatives. All this and more makes Haleeb Foods
Pakistan’s number 1 and fastest growing packaged food company. As of fiscal 2005, its annual
turnover is Rs. 7.2 billion.
INTERNATIONAL CERTIFICATIONS
Haleeb Foods’ products are made with great care, and marked with our quality seal of
recognition. We are the only dairy company in Pakistan that undertakes 21 rigorous quality
control tests on every portion of the milk collected by our teams. These internationally
recognized tests are used to check for: a) adulteration, b) microbiological contamination and c)
adequacy of nutritional contents. All processes, from preparation to quality assurance to
packaging, are undertaken employing state-of-the-art technology and equipment. Therefore, we
take great pride in the fact that Haleeb Foods is the only food company in Pakistan that has the
following international certifications of quality and prestige:
HACCP (in process controls for safer products)
ISO 9002 (better quality for greater customer satisfaction)
ISO 14000 (environment-friendly operations)
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COMPANY’S MISSION STATEMENT


Build Branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing stake holders' value
COMPANY’S VISON STATEMENT
Most Innovative and fastest growing food company offering products enjoyed in "every
home every day"
COMPANY’S VALUES
 Enterprise
 Empowerment
 Accountability
 Trust
 Teamwork

PRODUCT LINE
DAIRY PRODUCTS
HALEEB BUTTER
Haleeb Butter is the best natural source of Vitamins A & D for everyone, and by far the
ideal way of starting yet another busy day. It is rich in its taste and revitalizes your energy for a
long tiresome day.
Shipping Units
 20g pack: 300 packs/carton
 50g pack: 120 packs/carton
 100g pack: 60 packs/carton
 200g pack: 30 packs/carton
 1000g pack: 1 pack/carton

HALEEB ASLI DESI GHEE


Haleeb Asli Desi Ghee is obtained from pure milk through the traditional procedure of
heating butter slowly. Haleeb Asli Desi Ghee is free from all artificial ingredients, it has pure and
natural taste and is nutritionally preserved.
Shipping Units
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 0.5 kg pouch: 10 packs/carton


 1 kg pouch: 5 packs/carton
 1 kg tin: 6 tins/carton
 5 kg tin: 2 tins/carton
 16 kg tin: 1 tin/carton
HALEEB CREAM
The premium cream processed hygienically from pure fresh milk, Haleeb Cream is
luxuriously rich in its thickness and nutritional value. It promises the richest assortment of
tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for
eating with bread etc. Packed in 6-layered Tetra Pack Brick Aseptic packaging. 6 months shelf
life.
Shipping Units
 250 ml: 27 packs/shrink-wrapped tray
 65 ml mini pack: 24 packs/dispenser
 6 dispensers/carton
HALEEB YOGURT
Haleeb Plain Yogurt meets the highest quality standards and gives consumers unmatched
quality, freshness and taste with every spoonful. Offered in 450g, 200g and 900g packing, with a
freshness seal that keeps the product attributes fresh throughout its life.
Shipping Units
 Plain Yogurt 450 gm: 12 Units/Tray
 Plain Yogurt 200 gm: 24 Units/Tray
 Raita 250 gm: 24 Units/Tray
HALEEB TEA MAX
In tune with the Haleeb Foods tradition of providing consumers high quality and value
added products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is
special milk that provides a rich taste in your beverage. It is also available in the unique and
delicious cardamom flavor, packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Shipping Units
 200 ml (plain) pack: 27 packs/carton
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 200 ml (cardamom) pack: 27 packs/carton


HALEEB CREAM (with honey)
Haleeb Cream with Honey is an exclusive treat: delicious thick cream fortified with the
goodness of pure honey, making a tempting spread on bread. Enjoy it anytime and exude energy
and freshness whole day long. It is packed in a 6-layered Tetra Pak Brick Aseptic packaging.
Shipping Units
 65 ml mini pack: 24 packs/dispenser
 200 ml: 24 packs/tray

UHT MILK
HALEEB MILK
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. It is Haleeb Foods premier brand, and
the choice of quality-conscious consumers who only go for the best. Packed in easy to open, 6-
layered Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life.
Shipping Units
 1000 ml: 12 packs/carton
 500 ml: 12 packs/shrink-wrapped tray
 250 ml: 27 packs/shrink-wrapped tray
DAIRY QUEEN
Dairy Queen is Haleeb another standardized and homogenized pure UHT Milk with 3.5%
fat and 8.9% solid non fats. At an affordable price it has won the hearts of consumers
everywhere. It is available in 6-layered Tetra Pak Fino Packaging, introduced for the first time in
Pakistan and has 2 months shelf life.
Shipping Units
 250 ml: 24 pouches per carton
 500 ml: 16 pouches per carton
 1000 ml: 9 pouches per carton
CANDIA
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Candia is Europe's Number One selling milk. Haleeb Foods Limited and Candia of
France have joined hands to bring you the highest quality milk. Candia is pasteurized,
homogenized, standardized, double sterilized milk. This not only ensures the highest quality, but
also the best taste ever. For the first time in Pakistan, Haleeb Foods Limited has introduced milk
packed in food grade plastic bottles. These bottles are manufactured from imported materials at
Haleeb Foods latest plant and guarantee longer shelf life, highest quality and storage with ease of
use.
Shipping Units
 250 ml Bottle: 12 bottles/carton
 1000 ml Bottle: 12 bottles/carton

CANDIA CLASSIC
Classic times ask for Classic tea, a product by Europe?s No.1 brand Candia. Its richness
and taste is bound to add more life to your cup, and it is an ideal choice for real tea drinkers.
Shipping Units
 1000 ml: 12 bottles per case
 500 ml: 12 bottles per case

CANDIA SKIMZ
Candia Skimz is the only completely fat-free milk with the richness of pure milk. Minus
fats, it is an ideal choice for weight-watchers and heart patients. It is also high in calcium
content, which prevents osteoporosis. Packed in a 6-layered Tetra Pack Brick Aseptic packaging,
it comes with a 3 months shelf life.
Shipping Units
 200 ml: 12 packs/carton
 250 ml: 27 packs/shrink-wrapped tray
SKIMZ
Skimz is a fat-free milk powder, naturally low in cholesterol; yet high in proteins and
calcium. There are mainly two types of milk powders, full cream and skimmed. SKIMZ is a
skimmed milk powder. Full cream powder contains 28% fat, whereas SKIMZ contains less than
1% fat. Moreover, the protein and calcium content is higher in SKIMZ as compared to full cream
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milk powder. It is best suited for weight conscious people as well as those trying to maintain a
low cholesterol level.
Shipping Units
 200 g: 12 skillets/shrink-wrapped tray
 500 g: 12 skillets/carton
CANDY UP
With the backup of Candia, Candy Up has been launched especially for flavored milk
drinkers, in chocolate & strawberry flavors to the sheer deli ght of children. The fact that it
comes in a bottle makes up for convenient usage as well.
Shipping Units
 500 ml: 12 bottles per carton
HALEEB GOLD
Haleeb Gold - The Thickest Milk with Extra Cream. This marvelous product provides all
the benefits of the Thickest Milk along with the natural goodness of extra cream. Haleeb Gold
with its extra rich creamy taste makes a perfect cup of Tea. It enhances your performance and
helps to maintain a healthy, dynamic lifestyle.
Shipping Units
 1000 ml: 12 packs/carton
 500 ml: 12 packs/tray
 250 ml: 27 packs/tray

HALEEB RESHMI PACK


Haleeb Reshmi pack is long life packaged milk and offers consumers premium quality
milk at an attractive price. Due to its multi-layered packaging material, Reshmi pack not only
retains the natural thickness of milk for a longer time, but also protects the milk from light, heat
and bacteria.
Shipping Units
 250ml : 5 liters
 1000ml: 6 liters
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JUICES
HALEEB FUNDAY
Haleeb Funday is a delicious juice drink especially for kids, enriched with calcium, and
vitamins A, C & D. An exciting treat, packed with health and a great taste, Funday juices will
surely be an instant success with kids with their unique and amusing names, Aamonka (mango)
and Arrochee (peach and lychee). They are packed in a 6-layered Tetra Pack Brick Aseptic
packaging.
Shipping Units
 200ml Pack: 36 Packs /Carton Shrink wrap units
 200ml Pack: 27 Packs/Carton
HALEEB GOOD DAY
Haleeb Good Day offers consumers a range of 100% pure juices with the essence of four
fruits in each glass, without any added sugar, flavors or preservatives. For consumption
absolutely anywhere and anytime, Good Days? six premium juices (apple, pineapple, red grape,
mango, orange, and mixed fruit) give you the absolute delight in taste, and revitalizes you at the
same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Shipping Units
 250 ml Pack: 27 Packs/Cartons
 1000 ml Pack: 12 Packs/Carton

TROPICO JUICE DRINK


With the quality assurance of Haleeb Foods, Tropico is the premium juice drink, superior
in taste and pulp contents, for that invigorating fruity refreshment. Tropico is available in three
flavors: apple, mango, and mix fruit, packed in a 6-layered Tetra Pack Brick Aseptic packaging.
Shipping Units
 1000ml Pack: 12 Packs/Carton
 250 ml pack: 36 packs/carton
 250ml Pack: 27 Packs/Cartons
HALEEB LABBAN
Lassi is an age-old traditional beverage in the South Asian continent. Haleeb Labban
aims to give its consumers the same satisfying traditional taste of thick lassi, along with hygiene,
Final Project of Dairy Queen 22

convenience and accessibility. Haleeb Labban is the only ready to drink packaged lassi available
in Pakistan. It is available in salty and sweetened variants, packed in a 6-layered Tetra Pack
Brick Aseptic packaging.
Shipping Units
 250 ml pack: 27 packs/carton
 1000 ml pack: 12 packs/carton
TROPICO NECTAR
Juices play an important role in the functioning of our body, have many benefits
associated with them, and help you achieve the desired healthy way of life. Tropico nectar is
another product from the house of Haleeb Foods Limited, which is 100% pure nectar, available
in four sumptous flavors including Red Blood Orange & Kinoo, Mango, Apple and Kinoo.
Haleeb Tropico is also the only brand that is offering Red Blood Ornage & Kinoo Juice - that is
so deliciously different that you will want to have it in your house, all year long.
Shipping Units
 250ml : 27 Packs/Carton
 1 Ltr : 12 Packs/Carton

BULK PRODUCTS
CDL also produces bulk dairy products.
Bulk Products Avaiable

 Instant Full Cream milk powder (IFCMP)


 Full Cream Milk Powder
 Skimmed Milk Powder
 Instant Skimmed Milk Powder (ISMP)
 Cream
 Ghee
 Butter

SITUATION ANALYSIS
DAIRY QUEEN MILK
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Dairy queen milk has developed a strong position in terms of UHT treated milk in the
industry. Even being a new entrant and serving for just about few years in this industry still
Dairy queen milk managed to obtain a strong position along with its other some competitors. The
product being offered by all competitors is same (talking with respect to basic ingredient and
contents), there is not much difference of offering in the product among the companies. Yet there
has been some difference offered through the packaging of the product. As it is always important
to have a good marketing plan to get itself into market and to grow in your own strategic group,
thus for Dairy queen milk it is important to have a marketing plan that can help it retain its
current market and also to help it grow gradually in the industry. Now, Dairy queen milk is
become lowest price milk in the market with 6-layered Tetra Pak Fino Packaging. Dairy queen
milk covers those consumers whom are not able to purchase the high price milk with best
quality, low price, and best milk.

MARKET DEMOGRAPHICS
AGE
As milk is a product that contains health and hygienic features so there is no particular
age distinction to be differentiated. So Dairy queen milk is for everyone who loves to be healthy
and who cares for the health needs. But still it is used in different age groups with some
differences, like children and older people are recommended as a growth ingredient and
something that gives a concept of strength and in middle age people it’s used in tea mostly.
GENDER
UHT treated milk by Dairy queen milk is meant for both the genders with no particular
distinction.
EDUCATION
Being a product involving some technological issues to make it more fresh and hygienic,
more educated people are using this product rather than uneducated. Also with the passage of
time, we see an improvement in its usage.
FINANCIAL BACKGROUND
UHT treated milk is an expensive product in terms of regular milk, so it is more in use of
middle and upper class of people. But as it is available at various places , people from different
financial backgrounds are using it according to their needs and requirements.
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FAMILY TRENDS
As its being used in middle class mostly, and its penetrating downwards with time and
with price issues being adjusted accordingly. But using UHT treated milk is a more of higher or
upper level trends in milk industry and has been initiated with upper class.
MARKET NEEDS
UHT treated milk is something that is homogenized, standardized and is toned at 3.5%
FAT level. So its just maintained at a standard level of milk to give the same quality and diet that
originally milk contains.
SELECTION
UHT treated milk by Dairy queen milk is available in ½ liter litter packaging.
ACCESSIBILITY
Dairy queen milk is available at many stores, and is within reach of customer easily. So,
Dairy queen milk has tried its best to provide its customers with the product by making it
available within their reach.

PEST ANALYSIS
POLITICAL
Dairy Sector in the Policy Context:
“The planners in Pakistan have always been more concerned about development of the
crop sector than dairying in the agriculture economy of the country. After in dependence, the
livestock population in Pakistan significantly deteriorated due to good stock was taken away by
evacuees, indiscriminate slaughter of animals by incoming refugees, dry cows and buffaloes
brought from rural areas by milk dealers for supply of milk in urban areas were slaughtered at
the end of lactation period, and increased demand for meat due to growth of population and
incomes. Urban areas faced acute shortage of milk and dairy products. The planners faced a
policy dilemma of how to increase draught power and milk production simultaneously. Efforts
were made to improve stock of cattle by breeding of indigenous animals, but output of improved
stocks was inadequate to make a dent on the dwindling supplies of improved cattle and buffaloes
in the country. The First Five Year Plan (1955-60) recognizes the importance of improving
breeding centers, operating more hospitals, dispensaries and mobile dispensaries to check spread
of contagious diseases for animals, in addition to providing for research on increasing
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supplies of feeds and fodders, and starting pilot schemes for artificial insemination for
improvement of cattle [Government of Pakistan (1957)]. The First Plan was very specific in
removing gujar (a cast of milkmen) colonies from cities like Lahore to outskirts and in
recommending milk supply schemes for Karachi and Lahore on a pilot basis. Under the scheme
government was to buy milk from gawalas (milkmen) residing in gujar colonies and supply
pasteurized milk in sealed bottles through registered milk depots. To reduce adulteration in milk,
the Plan recommended testing of milk for purity. The Plan also suggested that most of the milk
would be produced in villages near the cities where small farmers would specialize in dairying
by keeping half dozen or more cows, produce their own feed and organize them selves in to
cooperatives for assembling, transport and even processing of milk. Soon it became clear that the
First Plan, which articulated the problems at hand quite well proved to be too ambitious in their
implementation as compared to the Plan target. The question of how to improve milk production
capacity remained un-addressed even in the Second Five Year Plan (1960-65), which
experienced major policy shift toward development of the large-scale manufacturing sector.
Hence there was very little planned effort, if any, for the development of the dairy sector.2In the
Third Five Year Plan (1965-70) there was renewed emphasis on agriculture development
with the help of the seed-fertilizer-water technologies (the Green Revolution technologies) for
higher yields in the crop sector.
However, the dairying sector went into oblivion. The milk supply schemes envisaged in
the First Plan for Karachi and Lahore first became operational in Karachi in 1965. With the
support from UNICEF (United Nations Children’s Fund), in later part of sixties, subsidized milk
was made available in Karachi to low-income families and school children. This plant had to be
shut down in 1980 after running in deficit for fifteen consecutive years. Similarly, the Pilot Milk
Supply Project in Lahore also went into production in 1967, but like the project in Karachi this
project also failed to receive the patronage of successive government sand hence was abandoned.
Milk processing industry got a boost as part of the development of the manufacturing sector in
the country somewhere between sixties and seventies, when the private sector established 23
milk pasteurization and sterilization plants around three big cities, e.g., Karachi, Lahore, and
twin cities of Rawalpindi and Islamabad. These plants relied on supplies of skim milk powder
coming under the auspices of the World Food Program, which was recombined and pasteurized
before being sold to consumers. These plants failed mainly due to weak acceptance of the
Final Project of Dairy Queen 26

recombined milk by consumers and its short shelf life. In other words, inadequate supplies of
fresh milk to milk processing industry proved to be the major hurdle in their success. There was
a renewed interest in the milk processing industry in late-seventies and early-eighties when
policy support was provided by the Government in the form of exemptions in income tax, duty
free import of machinery and equipments, and availability of domestic and foreign currency
financing [Government of Pakistan (1990)].
Government has always tried promoting dairy industry within the country. For this
government has given lots of relaxation to milk industry for instance there is no tax or excise
duty on milk products. Government has a complete and comprehensive legal framework for milk
industry to keep things in flow and up to mark within the industry. At the same time government
keeps on revising its policies that could help improving overall industry. But when we say that
there are good policies and regulations to promote industry it also require some attention in terms
of implementation of these regulations and governments have never been able to make industry
follow these regulations and promotional policies due to not so keen interest of governments
officials and also the implementation process has been designed so complicatedly that things
never go smooth when it comes to implement or adopt these policies for industry players. The
reason comes as government couldn’t streamline the things for being practically observed by the
industry or government was not able to regulate the policies in a way that could reduce irritation
and long processing times for the companies.
ECONOMICAL
The main economic factor acting for this industry is uneducated suppliers of raw
material, so lots of raw material is affected in terms of its quality and preservation issues and a
big percentage of raw materials go to waste before its being processed. But at the same time
UHT milk doesn’t have any kind of taxes on it which makes it a good economic factor for the
industry growth and improvements in its production. As UHT milk is a bit costly than the
ordinary milk or non processed milk so income factor of consumer is always an important
economical factor for the industry players. UHT milk industry carry consumers from upper
middle and upper class and income level for this class has increased over time which is
something in favor for the industry.
Final Project of Dairy Queen 27

SOCIAL
Socially the most important thing for the industry is that people have realized the
importance of UHT milk because of its safety and better health issues than ordinary milk that
could carry lots of bacteria and germs during its complete delivery to the end user. But at the
same time people avoid using UHT milk due to its cost factor, being costly consumption of UHT
milk is far less than other un processed milk, but with the time and awareness among people they
have realized that the cost they are paying does pay them back good enough in terms of health
issues and quality of milk. So with time this issue is decreasing as people have got to know the
value of what they are paying for. Critical social issue going around among consumer about
UHT milk is that its something treated or created artificially, which is required to be taken care
of by industry player through their awareness and information campaigns for their consumers to
make them clear about such thoughts they carry about UHT milk to utilize better potential from
the market.
TECHNOLOGICAL
First of all because the farmers or Gawala don’t have the means of transportation to
deliver the milk up the value chain themselves, and they also don’t have the means to maintain
the freshness of the milk (refrigeration) so that the milk retains its actual value. Both issues are
related to the availability of appropriate technologies. Technology is, in this case primarily a
function of capital. In milk and specially UHT milk industry technology is a critical factor in
terms of barriers to entry. Although the market is already saturated, downward pressure on UHT
milk prices could be created through either meeting existing capacity, or the establishment of
new UHT plants. The downward price pressure would then induce new section of socio-
economic cross section to enter the market as consumer of UHT milk. Custom duties on the
import of packaging machinery, which is at the heart of the UHT segment of the industry (either
TetraPack technology, or alternatives), are prohibitively high. The artificial cap on increase on
demand of UHT there fore creates a negative impact on small farmers, who must continue to
supply to the informal sector where they are subject to the Gawala. So because being expensive
as high capital investments are required for establishing UHT milk plants due to heavy capital
cost on machinery this industry is suffering.
Final Project of Dairy Queen 28

PORTER FIVE FORCES

THREAT OF NEW ENTRANTS


There was a time when there was not a big threat of new entrants in this industry,
however with time and with maturity of dairy industry infrastructure threat of new entrants has
increased slightly. As in past it was considered to be a very expensive and costly industry in
terms of plants for packaged and pasteurized milk, whereas now with some government support
and so many options in terms of financing activities, entering dairy industry is not longer a big
deal. As with time and within couple of years so many companies have entered the market which
was never the case if we look back into last 3 or 4 years. So, dairy industry will be facing higher
threats if we look into current situation of market opportunities and market potential, because
dairy industry does carry a high potential of growth in it.
This factor can also be justified with the fact that this industry was not well established in
terms of technology and knowledge base of not only consumers but the producers of raw
Final Project of Dairy Queen 29

material and production so as the information and system is being developed, with good potential
of growth this industry will definitely be having new entrants in coming period of time.
BARGAINING POWER OF SUPPLIERS
Bargaining power of suppliers is not very high in this industry as mostly the suppliers’
lack of knowledge in their field and otherwise the milk collections centers are owned by the
processors themselves or either they have a long term contracts with these collection centers. On
the other hand the processing plants or buyers offer lower price to these collection center based
on the fact that these collection centers have their own system of payments to the farmers, based
on the more the payment is paid in advance less is the price in terms of litters, so same is going
through the suppliers and processing units.
BARGAINING POWER OF CUSTOMERS
Bargaining power of customers is relatively improving with time as new entrants have
entered the market. But still as this industry is something that relates to health issues and requires
sensitive and taste related issues so bargaining power has been reduced by some major players
using their brand image and quality image in the market. But with time and awareness in the
market, which include both the customers and the suppliers the bargaining power of customers
has been improving but still its not something that can create big fear for the market players to be
afraid of.
THREAT OF SUBSTITUTES
The UHT milk industry has the highest threat of substitute from the Gawalla market,
where a gawalla (milk man) delivers the Open milk in the homes by himself. The UHT milk
industry has it the highest threat because the Gawalla market is capturing 94% share of the total
milk industry and processed or packed milk industry has only 6% of the total market share. Now,
in that 6% of the packed milk industry, UHT milk has 90% market share. Therefore the only
major and biggest substitute of UHT milk industry is Gawalla industry. It is the fact that the
consumers may quickly switch to the open milk when there is an increase in the prices of UHT
milk products or decrease in the quality of the UHT milk.
INTERNAL RIVALRY
There are two major players in UHT milk industry Nestle MilkPak and CDL, where as
other players collectively have 11% market share while these two players have 45% and 44%
share respectively. So the basic rivalry lies between Neslte and CDL and its has gone higher and
Final Project of Dairy Queen 30

higher with in last couple of years as CDL has been improving relatively but still has to fight
long way to meet Nestle’s brand image and technological superiority in the industry.

PEST V POTER (Summary)


Pest Analysis shows that dairy industry is very attractive and there are many
opportunities for the companies, but as we know that there are many companies in the ground for
playing. Penetration and awareness are main tools for the success of any company. Suppliers are
getting more benefit from the companies due to internal competition. Customer has more choices
then previous and his economical condition is better that’s why he wants more choices. The
power of the customer in being increased by the available choices in the market.
It comes out clearly from an historical review of the past dairy policies in Pakistan that
policy makers never had faith in the development of the dairy sector. For example, a cursory
look at the Five-Year Plans shows that the policy interventions for dairy development were very
few and far between, which also reflects in the poor showing of milk yields per animal, and in
the way milk supply channels are currently organized. In this section, we present a preliminary
review of Pakistan’s dairy development policies in an historical perspective, and highlight the
role played by the market forces in creating incentives for higher milk production by subsistence
and market oriented milk farmers in the country. If we talk about the powers, if supplier power
will increase then company will increase the price and penetrate in lower level and use those
benefits which are given by the Government of Pakistan. If customer bargaining power will
increase, then company will start tactical promotional activities to reduce the bargaining power
of the customer.

SWOT ANALYSIS
Analysis of Strengths and Weaknesses for the DAIRY QUEEN MILK in the industry Key
internal factors for the DAIRY QUEEN MILK are;
STRENGTHS
 Dairy queen milk has a good in house R&D to help them improve the system and quality
control aspects.
 The staff is highly trained and qualified.
 Dairy queen milk has an updated technology regarding UHT treated milk.
 Dairy queen milk has good brand awareness because of its product repute
Final Project of Dairy Queen 31

 Quality of dairy queen milk is good thing for the company which company can count on
 Dairy queen milk has its own sales force and sales team to work in the market for dairy
queen milk.
WEAKNESSES
 Dairy queen milk is available at selected stores and outlets, which sometimes create
problem for the consumer to get the product with ease and convenience.
 Dairy queen lack the promotional activities such as advertisements and billboards
OPPORTUNITIES
 As unprocessed milk is the raw material for the product and is available and can be
managed with ease
 The staff is highly trained and qualified.
 Government is wiling to support UHT milk products
 Government has allowed duty free imports of machinery and feeds dairy animals
 With education and time awareness regarding UHT milk has increased and is helpful for
Dairy Queen to act
THREATS
 UHT milk is growing as product but is a bit slow in process
 UHT milk is being packed using tetra pack technology which is a costly one
 Mostly the raw milk being transported to plant doesn’t carry good shape as its transported
from longer distances

COMPETITOR OF HALEEB FOODS

HISTORY OF NESTLE
Nestlé was founded in 1866. In the 1860s Henri Nestlé, a pharmacist, developed a food
for babies whose mothers were unable to be breastfed. His first success was a premature infant
who could not tolerate his own mother's milk nor any of the usual substitutes. The value of the
new product was quickly recognized when his new formula saved the child's life, and soon,
Farine Lactée Henri Nestlé was being sold in much of Europe. In 1905 Nestlé merged with the
Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating
Final Project of Dairy Queen 32

factories in the United States, United Kingdom, Germany and Spain. World War I created new
demand for dairy products in the form of government contracts. By the end of the war, Nestlé's
production had more than doubled. The first Nestlé factory to begin production in the United
States was opened in Fulton, Oswego County, New York. The factory however was closed in
2001, after the company decided that the cost of restoring, and updating the factory was not
worth the effort. Employees of the factory were furious, and raised the company flag upside
down the day the closing was announced.
After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second
most important activity. Nestlé felt the effects of World War II immediately. Profits dropped
from $20 million in 1938 to $6 million in 1939. Factories were established in developing
countries, particularly Latin America. Ironically, the war helped with the introduction of the
company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's
production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and
soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's
(1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its
second venture outside the food industry by acquiring Alcon Laboratories Inc. In 1984, Nestlé's
improved bottom line allowed the company to launch a new round of acquisitions, notably
American food giant Carnation and the British confectionary company Rowntree Macintosh in
1988. The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there have been
acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina
(2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé
merged its U.S. ice cream business into Dreyer's [1], and in August a $2.6 billion acquisition was
announced of Chef America, Inc. In the same time frame, Nestlé came close to purchasing the
iconic American company Hershey's, though the deal fell through. Another recent purchase
include the Jenny Craig fitness firm for $600 million. In December 2005 Nestlé bought the
Final Project of Dairy Queen 33

Greek company Delta Ice Cream for €240 million. In January 2006 it took full ownership of
Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.

NESTLE MILKPAK
VISION STATEMENT OF NESTLE MILKPAK
The strategic priorities of Nestle Milkpak are focused on delivering shareholder value
through the achievement of sustainable, capital efficient and profitable long term growth.
Improvements in profitability will be achieved while respecting quality and safety standards at
all times.
In line with this objective, Nestle Milkpak envisions to grow in the shortest possible time
into the number one food company in Pakistan 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 the highest quality. Nestle Milkpak
envisions the company to develop an extremely motivated and professionally trained work force,
which would drive growth through innovation and renovation. It aspires, as a respected corporate
citizen, to continue playing a significant role in the social and environmental sectors of the
country.
SUMMARY OF OPERATIONS
PRODUCTION
The joint venture between Milkpak Ltd. And Nestle S.A. came about in 1988 and the
company was renamed as Nestle Milkpak Ltd. Prior to that, Milkpak Ltd., produced UHT milk,
butter, cream, desi ghee and fruit drinks at Sheikhupura factory. 21 branded product lines were
added during 1990 to 1998. Nestle Milkpak operates the largest and an extremely efficient milk
collection system in the country, which enables it to collect the highest quality milk for
production of UHT and powder milks as well as other milk based products. The company
voluntarily provides extension services of farmers in the area of animal husbandry and livestock
breed improvement.
EXPORTS
Nestle Milkpak entered the export market in 1993 with exports of Rs.3.2 million to
Afghanistan. Growing steadily over the years, its exports stood at Rs.321 million by June, 1998.
Currently, it's overseas markets include the UAE, UK, USA, Sri Lanka, Malaysia, Bangladesh,
Afghanistan and Central Asian States.
Final Project of Dairy Queen 34

CONTRIBUTION TO OTHER SECTORS


In the social sector, the company provides over 1,100 job opportunities for skilled,
unskilled and professional manpower. It plays a remarkable role in vitalizing the rural economy
by disbursing over Rs.1.37 billion annually against milk purchases, benefiting over five million
household members of the dairy farmers.
THE ENVIRONMENT
In line with its universal commitment, Nestle Milkpak fully complies with its responsibilities
forwards the protection of the environment. By making available the processed and packaged
dairy products to urban consumers, it helps in arresting urban environmental degradation caused
by the influx of cattle into towns. Within it's own production facilities, the company takes pains
to operate an elaborate water treatment system to cleanse its industrial wastewater before
releasing it for irrigation.
 BUSINESS INFORMATION
Date of Inception of Business: January,1980
Fixed Capital: Rs. 74 million (includes fixed assets & working capital)
Present Fixed Capital: Rs.1,526 million
Increase in Percentage Terms: 2,062%
 SHARES
Listed on Stock Exchange: 8th July, 1978
Share price at time of listing: Rs.10 per share
Highest share price: Rs.165.00 per share on June 30, 1996
Present price: Rs.112.00 per share

NESTLE'S MILK SOURS IN PAKISTAN


Nestle, the Swiss baby food transnational corporation (TNC), has been attacked for
''blatant'' violations of the international marketing code for infant foods in Pakistan in a new
report here. Released by Islamabad-based health advocacy group The Network, it has prompted
Pakistan's military rulers to order officials of the Health Ministry to take appropriate steps for
''necessary action'' on the basis of the report.
The report ''Milking Profits: How Nestle puts sales ahead of infant health'' is based on
evidence provided by a former employee of the TNC. Says Tracy Wagner, campaign officer at
Final Project of Dairy Queen 35

The Network: ''This is the first time that such explicit and irrefutable evidence has come from
inside this massive company.'' The Network is a partner of the International Baby Food Action
Network (IBFAN). Although Pakistan does not have laws to regulate the marketing of infant
foods, companies are obliged to abide by the International Code for the Marketing of Breastmilk
Substitutes, adopted in 1981 as a ''minimum requirement'' by the World Health Assembly, the
highest global policy-making body. The code prohibits all promotion of breastmilk substitutes
and feeding products, including direct contact with mothers, incentives to doctors and free
product samples and supplies. However, the report reveals that Nestle is guilty of Code
violations in Pakistan. An internal document included in the report establishes a direct link
between its sales and financial benefits and sponsorships to doctors.
''The document shows irrefutably that Nestle agreed to pay for half the price of an air
conditioner to a doctor, considering his influence in the district - provided sales of Nan and
AL110 go up,'' said Wagner, adding, ''We possess this document in original, spelling out the deal
in no uncertain terms.'' The report also includes specific evidence about Nestle's direct contact
with mothers in the waiting rooms of doctors, in hospital wards and by organizing baby shows. It
says the company provides free samples and supplies of products covered by the international
code.
The Swiss TNC denies the allegations and accused its former employee Syed Aamar
Raza, who supplied the documents to The Network, of blackmail and gaining employment by
presenting a false diploma. Nestle claims to possess audio recordings of Raza's blackmail
attempt, allegedly attempted in February 1998, which he denies: ''I never tried to blackmail
Nestle. If they have evidence against me, they should take the case to the appropriate forum and
press charges against me,'' Raza said over the phone from Germany, where he is closely working
with European IBFAN groups to highlight ''Nestle's unethical practices in Pakistan''. ''The
evidence in the report speaks for itself - this company is violating the international code as a
matter of routine,'' said Wagner.
The report has reopened debate on the need for strict curbs on the marketing of
breastmilk substitutes in Pakistan which registers one of the highest infant mortality rates in the
world. According to the ''State of the World's Children Report 2000'' recently released by the UN
children's agency, Unicef, nearly 10 percent of babies born in this country die in the first year.
''Bottle-feeding contributes significantly to diarrhoea and respiratory infections, two leading
Final Project of Dairy Queen 36

causes of infant death in Pakistan,'' said Dr Asad Hafeez, a pediatrician in Islamabad. The office
of the Chief Executive, Pakistan's military ruler Gen Pervez Musharraf, has instructed the
Ministry of Health in a letter to take appropriate steps on the issue, and report back to the Chief
Executive's Secretariat. The letter signed by Brig Tariq Hamid Khan says, ''The report is
forwarded to Health Division for necessary action as may be appropriate under the policy in
vogue, under intimation to this Secretariat as well as the petitioners (The Network).''
Health Ministry officials said they had submitted a draft which took seven years to
finalize, of a proposed law - the Protection of Breastfeeding and Young Child Nutrition Act - to
the Nawaz Sharif Cabinet last year. The draft law has incorporated provisions from the
marketing code adopted by South Asia's regional grouping Saarc, at a ministerial meet for
children in Pakistan in 1996, which is stricter in the light of the high rates of malnutrition and
poverty among children in the region. ''We'll soon forward the draft to the cabinet for its
approval as an ordinance,'' said an official of the health ministry. An earlier report, ''Feeding
Fiasco'', published by The Network in 1998 accused all baby food manufacturers in Pakistan of
violating the code. Among the 160 or so brands sold here, are the US Mead Johnson and Abbot,
and Japanese Morinaga. According to Wagner, ''Nestle is just one of many baby food companies
playing with the lives of Pakistani babies. Without laws, we have no legal recourse and can only
try to shame them into more responsible corporate conduct.''
Nestlé Pakistan runs a milk programme for undernourished young children and mothers
through several NGO partners. This assistance goes to the destitute, poor and disabled at day
care centres, schools, hospitals, shelters and jails where children are incarcerated with their
mothers. Nestlé Pakistan has been involved for over 15 years in supporting dairy development in
the Punjab province, where it collects milk for processing. Its efforts have been focused on
increased milk production and livestock development – something that directly and positively
impacts the lives of the small farmers with low income. This is a great success story. This has
brought prosperity to farmers through an assured and growing income resulting from increased
sale of their milk. These efforts of the Company have been widely acclaimed by the farmers and
the government alike.
Towards this end, the Milk Collection Department operates an Agri-Service unit, staffing
it with qualified people, who provide a wide range of services in the areas of breed improvement,
Final Project of Dairy Queen 37

animal health, better feeding and good animal husbandry practices. The Company also helps
farmers to avail of micro credit from banks for the purchase of dairy equipment and animals.
FOCUS
Creating value for society while creating value for our shareholders…. this is Nestlé's
approach to the community and, on a wider view, to the attainment of the U.N. Millennium
Development Goals. We regard these Goals as highly important objectives for improving the
state of the world. The Millennium Development Goals are, among other things, a bold attempt
to prioritise what is needed to address the most pressing needs of people in developing countries
in particular. They focus on poverty reduction, education, health for women, children and the
reduction of pandemics like HIV/AIDS and malaria. They address environmental sustainability;
and they stress the importance of partnership in order to achieve results.
FINANCIAL PERFORMANCE FOR THE YEAR ENDING 2002:
Although the economy showed marginal improvement, the business environment
remained generally stagnant during 2002. Despite this, the company has performed very well
during the period under review, which can be assessed from the following information:

PKR Million 2001 2002 Change

Sales 8,054 9,222 +14.5%


Operating Profit 902 1,149 +27.4%
of sales 11.2% 12.5%
Net Profit 414 651 +57.2%
of sales 5.1% 7.1

For the fifth consecutive year, the company registered an impressive double digit Real
Internal Growth of 14.1%. Major product categories viz: liquid and non liquid milks, chilled
dairy and water, showed strong growth. Exports rose to Rs. 383 million representing a 39.3%
value growth. Export to Afghanistan, which represents 60% of Nestle’s total exports, doubled
from Rs. 102 million in 2001 to Rs. 231 million in 2002. Total sales for the year reached Rs. 9.2
billion, showing a value growth of 14.5% over last year. Net profit for this year stood at 651
million, an increase of 57.2%, which translates into a net profit margin of 7.1 % as against 5.1%
in 2001. Improved profit margin became possible through various initiatives. While sustained
volume growth and cost saving initiatives in the areas of production and purchasing were mainly
Final Project of Dairy Queen 38

instrumental in achieving this, proper controls of fixed general overheads, lower financial cost
due to lower interest rates and tight control of working capital also significantly contributed in
improving the net profit.
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2002

G Rs ’000
Sales 9,181,267
Cost of goods sold 6,441,080
G
Gross profit 2,740,187
Admin & Selling expenses 1,587,171
G
Operating profit 1,153,016
Other income 33,837
Total 1,186,853
G
Financial charges 95,986
Other charges 81,594
Total 177,580
G
Profit before taxation 1,009,273
Provision for taxation 349,173
G
Profit after taxation 660,100
Unappropriated profit b/f 79,024
Profit available for appropriation 739,124
G
Interim dividend @ Rs.6 per share 271,638
Final dividend @ Rs. 6 per share 271,638
Transfer to general reserve 130,000
Amount capitalized by issue of shares Under
91
scheme of arrangement for Amalgamation
Total 673,367
G
Unappropriated profit C/F 65,757
Earning per share – (Rupees) 14, 58
Final Project of Dairy Queen 39

MARKETING & SALES


During the year under review the company achieved sustainable profitable growth by
capitalizing on the opportunity presented by a positive business environment. This became
possible through successful marketing & sales strategies and focus on key initiatives. Innovation
and renovation remained the key to development of new products. In 2005 several new products
were introduced that included NIDO 1+, NESTLE NESVITA HI-Calcium low fat milk,
NESTLE NESVITA Hi-Calcium low fat Yogurt, NESTLE Corn flakes, NESTLE KOKO
KRUNCH in addition to two new products in the chocolate category viz: KIT KAT CHUNKY &
NESTLE MILKYBAR. New SKU’s were also added to the existing range with the launch of
NESTLE RED GRAPE NECTAR.
The strategy to increase penetration by offering right price point pack sizes,
supplemented by aggressive distribution expansion across the country especially in small towns,
paid off in water, juices, NESCAFE, and yogurt. Success was ensured through well executed
localized activities such as effective communication, consumer services shows, door-to-door
sampling and consumer promotions.
During the period under review we continued with our strategy to increase distribution
penetration and develop additional trade channels. Activities such as town storming, special
distribution drives and distributor training were extensively undertaken in second strata towns.
Area-based territory management continued to be strengthened and wider availability and
visibility of products provided a competitive adge. The key initiative of ‘Category Sales
Development’ continued to effectively strengthen strategy planning with respect to channels,
customers and shoppers.
FOOD SEVICES
Food Services remained a fast developing business and continued to meet specialized
needs of Out-of-Home customers. Its role and activities were further strengthened during 2005.
Out-of-Home channels that the unit serves included hotels, restaurants, clubs, businesses,
industries, third party canteens and NESCAFE vending operations. Our strategic outlook was
focused on propelling growth of liquid milks, tea creamers, hot & cold beverages & water.
Consumer trends of out-of-home consumption promise a bright future for this business. In 2005
the market share of key brands was further strengthened, trade spent & market returns were kept
Final Project of Dairy Queen 40

well under control while achieving sales value growth of 36.1% and real internal growth reached
31.1%.
RAW MATERIALS
Agricultural raw materials provide the basis to the company’s finished products and
therefore are central to its operations. Although not involved in raw material production, the
company supports sustainable agricultural and dairy farming practices, including environmental
protection.

NESTLÉ PRODUCT LINE


DAIRY:
NESTLE EVERYDAY
To target the large potential offered by the tea-creaming segment, NESTLE EVERYDAY
tea-creamer was launched in 1992. supported by integrated marketing, focused distribution with
sampling drives and excellent consumer acceptance, the brand has shown strong growth and
acceptance, the brand has shown strong growth and holds great promise for the future. The brand
is available in a variety of pack sizes ranging from 40gm to 1000gh.
NESTLE EVERYDAY Liquid
NESTLE EVERYDAY liquid, leveraged by a very strong mother brand EVERYDAY
Powder was introduced to capture the huge liquid milk consumption in tea. Launched in june
2002 in 200ml, it is now also available in 125ml and 375ml sizes. Year 2005 has seen this brand
become a significant player in highly competitive milk market.
NESTLE MILKPAK UST MILK
Launched in 1981, MILKPAK milk became synonymous with purity. In September 1999,
it was launched under the Nestle brand, which further strengthened its position. Backed by a very
strong brand name, aggressive marketing and distribution, consistent quality and all year round
availability. NESTLE MILKPAK milk has become number one selling milk brand in Pakistan. It
is available in four pack sizes of 1500ml, 1000ml, 500ml and 250ml.
MILKPAK UHT Cream
MILKPAK UHT Cream was introduced under the MILKPAK brand in 1986. it is
available in an attractive 200ml slim pack. The consumer trust in the brand name and the product
has ensured its dominant share in the cream category.
 NESTLE NESVITA Hi-Calcium Low Fat Milk
Final Project of Dairy Queen 41

 MILKPAK Desi Ghee


 NESTLE NIDO
 NESTLE Raita
 NESTLE Easy Whip
WATER:
Launched in December 1998, NESTLE PURE LIFE was Nestle’s first global bottled
water brand. Marketed in 2.5 and 1.5 liter PET bottles, it was established as the near market
leader within 3 months of launch, becoming the benchmark for quality of bottled water in
Pakistan. With focused attention on distribution, marketing communication and merchandising,.
Nestle pure life soon came to command dominant market leadership, establishing a new price
point for bottled water. Nestle Pure Life is a part of the product portfolio of Nestle Waters, wich
ranks as the biggest bottled water company in the world with its renowned brands. Nestle pure
life is registered with NSF international as an independent quality certification agency, with the
authorization to use its mark of quality on the label. Its also approved by PSQCA and carries its
mark of certification.
In 2000, NESTLE PURE LIFE established a successful Home & Office (H&O) delivery
service, which has abstantially grown ever since and has come to dominate the 5-gallon market
in major towns, offering greater convenience and better value to the consumers. Successful
marketing and sales strategies has provided greater convenience and better value to the
consumers. The brand is poised for continued strong growth.
 ALPINE Full Cream Evap
 BEAR BRAND
 CARNATION Condensada
 CARNATION Coco Evap
 CARNATION Evap
 MILKMAID Reconstituted Condensed Milk
 NESTLÉ All Purpose Cream
 NESTLÉ Cream
 NESTLÉ Fresh Milk
 NESTLÉ Low Fat Milk
Final Project of Dairy Queen 42

 NESTLÉ Cottage Cheese


 NESTLÉ Creamy Yogurt Natural
 NESTLÉ Sour Cream
BEVERAGE:
 Nescafe 3 in 1
 NESCAFE Gold
 MILO Powder
 MILO RTD
 NESCAFÉ Classic
 NESVITA
 NESTEA Black Tea
 NIDO Full Cream Milk
CEREALS:
 ALMOND CLUSTERS
 NESTLÉ Cookie Crisps
 NESTLÉ KOKO CRUNCH
 MILO BALLS
 CORNFLAKES
 BANANA NUT CLUSTERS
 FITNESSE
 FITNESSE with FRUITS
 KOKO KRUNCH
 HONEY STARS
CONFECTIONERY:
 POLO
 NESTLE KIT KAT
 NESTLE KIT KAT Chunky
 MAGGI 2-MINUTE NOODLES
 ALMONETS
Final Project of Dairy Queen 43

 FOX’s FRUITS
 KITKAT (White and Milk Chocolate)
 NESTLÉ Crunch
 NESTLÉ Dark Chocolate
 NESTLÉ Classic White Chocolate with Almonds
 RAISINETS
 SMARTIES
BABY FOODS
 LACTOGEN
 NAN
 CERELAC
 NESTLE Rice
 NESLAC
OTHERS:
 NESTLÉ Ice Cream
Final Project of Dairy Queen 44

CUSTOMER ANALYSIS

Positioning Map
Price

Taste

CVA
Middle class customer is more interested is price then taste. Because UHT milk is bit
costly than lose milk. UHT milk price is 34 and lose milk is available at 20 to 30 rupee per litter.
Pure milk is a problem for the customer and customer wants to get or purchase pure milk with
quality because now customer is more conscious about health that’s way he wants to purchase a
quality product. Although taste of the product is an issue, but against high price it’s not a issue
for the customer.
Dairy Queen is a product which is providing value to the customer “Best Milk at Low
Price”. Quality and taste is providing in dairy queen at low price for the middle class household
families.
Prices are going up day by day due to high price demand from the suppliers and
companies have to increase their prices of UHT milk. Heleeb and Nestle made a promise that
they will increase their prices of milk together. When you position your product on the bases of
Final Project of Dairy Queen 45

requirements of the customer it will be always in the mind of the customer and our positioning is
“low price milk”.
There are many brand of UHT milk in the market and they have their own segments or
target market. But Dairy Queen finds out a new segment and target market for the penetration
and position the product. Our segment is middle class household and low income level families,
whom are not afford high price milk.

SEGMENT OF DAIRY QUEEN

SEGMENT OF DAIRY QUEEN

Gap
Haleeb
Nestle
Good milk
Owlper
Dairy Queen
Milk

Lose milk
Halla milk

INTERNAL FACTOR EVALUATION


Analysis of Strengths and Weaknesses for Dairy Queen Milk in the industry, key internal factors
for Dairy Queen Milk are as below,

STRENGTHS
Final Project of Dairy Queen 46

FACTOR WEIGHTS RATE TOTAL COMMENTS


1 In house R&D 0.11 4 0.44 Dairy Queen Milk has a good in
house R&D to help them improve
the system and quality control
aspects
2 Trained staff 0.09 4 0.36 The staff is highly trained and
qualified.
3 Technology 0.11 4 0.44 Dairy Queen Milk has an updated
technology regarding UHT treated
milk.
4 Good brand 0.19 4 0.76 Dairy Queen Milk has a good brand
awareness awareness because of its older
product repute
5 Services 0.13 3 0.39 Dairy Queen Milk has a good
service center to help people
regarding any concerns about the
product
6 Quality 0.08 4 .32 Quality of Dairy Queen Milk is good
thing for the company which
company can count on
7 In house sales 0.09 3 .27 Dairy Queen Milk has its own sales
forces force and sales team to work in the
market for Dairy Queen Milk
Final Project of Dairy Queen 47

WEAKNESSES

FACTOR WEIGHTS RATE TOTAL COMMENTS


1 Availability 0.18 1 0.18 Dairy Queen Milk is available at
selected stores and outlets, which
sometimes create problem for the
consumer to get the product with ease
and convenience.
2 Promotional 0.02 2 0.04 Dairy Queen Milk lack the
activities promotional activities such as
advertisements and billboards
Total 1 3.2
Final Project of Dairy Queen 48

EXTERNAL FACTOR EVALUATION

Opportunities and Threats that Dairy Queen Milk carries being in the UHT milk industry.
Key external factors for Dairy Queen Milk are;

OPPORTUNITIES

Factor Weights Rate Total Comments


1 Availability of raw 0.14 3 0.42 As unprocessed milk is the raw
material material for the product and is
available and can be managed with
ease
2 Health conscious 0.21 4 0.84 The staff is highly trained and
customers qualified.
3 Government support 0.09 3 0.27 Government is wiling to support
UHT milk products
4 Duty free import of 0.12 2 0.24 Government has allowed duty free
machinery imports of machinery and feeds
dairy animals
5 Increased awareness 0.19 4 0.76 With education and time awareness
of UHT milk regarding UHT milk has increased
and is helpful for Dairy Queen Milk
to act
Final Project of Dairy Queen 49

THREATS

FACTOR WEIGH RATE TOTAL COMMENTS


TS
1 Slow growth 0.13 3 0.39 UHT milk is growing as product
of demand but is a bit slow in process.
2 Packaging as 0.03 2 0.06 UHT milk is being packed using
an expensive tetra pack technology which is a
ingredient costly one
3 Transportation 0.09 2 0.18 Mostly the raw milk being
of raw material transported to plant doesn’t carry
good shape as its transported from
longer distances
Total 1 3.16
Final Project of Dairy Queen 50

GE MATRIX

IFE = 3.2
EFE = 3.16
HIGH 4

MODERATE

LOW 1
O
U
V
C
A
N
R
X
L
T
E
F
I

4 3 2 1

W
O
L
M
IG
H

O
A
R
D
T
E

INTERNAL FACTOR EVALUATION

The result of the GE matrix lies in the cell 1 described as grow and build, “best milk at
low price” is the most appropriate and effective strategy that Dairy Queen Milk can currently use
for its product. Market development with commitment strategy is used when, we are seeing that
we are not so well in market share and there are well established and known competitors are
there in the market, but we still lye somewhere from which we can find some new markets, and
there are new channels of distribution available which are of good quality. When an organization
see that it’s pretty well at the place where it is. It is also used when some organization thinks that
it has an ability to use the production capacity and to expand it with requirement. And at the
most when the industry for that company is rapidly giving margin to grow.
If we go in details of the strategy we have chosen here for Dairy Queen Milk then it is,
Final Project of Dairy Queen 51

TOWS MATRIX

STRENGTHS WEAKNESSES
The staff is highly trained and Dairy Queen Milk is available
qualified. at selected stores and outlets,
Dairy Queen Milk has an which sometimes create
updated technology regarding problem for the consumer to
UHT treated milk. get the product with ease and
Dairy Queen Milk has its own convenience.
sales force and sales team to Dairy Queen Milk lack the
work in the market for Dairy promotional activities such as
Queen Milk. advertisements and billboards

OPPORTUNITIES The staff is highly trained and Dairy Queen Milk is available
Government is wiling to qualified. at selected stores and outlets,
support UHT milk products. Government is wiling to which sometimes create
Government has allowed duty support UHT milk products. problem for the consumer to
free imports of machinery and get the product with ease and
feeds dairy animals convenience.
With education and time With education and time
awareness regarding UHT awareness regarding UHT
milk has increased and is milk has increased and is
helpful for Dairy Queen Milk helpful for Dairy Queen Milk
to act to act

THREATS Dairy Queen Milk has its own Dairy Queen Milk is available
UHT milk is being packed sales force and sales team to at selected stores and outlets,
using tetra pack technology work in the market for Dairy which sometimes create
which is a costly one. Queen Milk. problem for the consumer to
Mostly the raw milk being Prices are going up day by day get the product with ease and
transported to plant doesn’t due to raw milk prices. convenience.
carry good shape as it’s UHT milk is being packed
transported from longer using tetra pack technology
distances. which is a costly one.
Prices are going up day by day
due to raw milk prices.
Final Project of Dairy Queen 52

NEW MARKETING STRATEGY


DEVELOPMENT WITH STRATEGY

Definition
• Maintaining stable interest in the market

Objective
• To maintain the status quo but to grow gradually
• To improve sale and product image
Requirements
• To grow in the market, but at the same time not losing the current position and
advantages Dairy Queen Milk has.
• To improve product image will help increasing and growing in UHT milk industry
• To keep customer satisfied and happy
Expected results
• Acceptable profitability and gradual growth
• Improved product image and sales

PRODUCT STRATEGY
(PRODUCT REPOSITIONING STRATEGY)
Definition
• Here we will be reviewing the current positioning of the product and its marketing mix,
thus seeking new position for it that seems more appropriate with its brand name.
Objectives
• To correct the original positioning mistake
• To increase the growth of market for Dairy Queen Milk through increasing life of product
in market
Final Project of Dairy Queen 53

Requirements
• Repositioning is sought through the promotion of the product for more varied uses of the
product.
• This will require some new promotional activity to get into attention those customers
who are not yet been inclined towards it, but with care so that the old customers are not
alienated.
• This may require to present the product with some different uses, such as flavored milk,
milk for tea, milk for coffee, milk with lower fat, etc
Expected results
• This will help us grow in our existing market
• This will also give us new customers thus increasing our overall market and helping us
taking our product to a growth route
• Increased sales, market share, new product uses, profitability and growth

PRICING STRATEGY
(MAINTAINING THE PRICE)
Definition
• Maintaining the price will mean here to get along with the competitors in the price as this
market is already at higher price levels so to get reasonable profits and to also maintain
the market its good for Dairy Queen Milk to stick and to maintain the prices that market
carries.
Objectives
• To enhance public image for Dairy Queen Milk by making them use the product.
• To maintain position in the market in terms of market share and profitability, but our
basic them of growth will help us through our other strategic plans.
Requirements
• Going along market price will help Dairy Queen Milk to enhance its image for
governmental agencies as well the customers
• Working on new marketing strategy so it will help us minimize the uncertainty of results
we might get with price change.
Final Project of Dairy Queen 54

• As overall market price is being followed so slight changes in environment will not affect
much.
Expected results
• This will help us maintain the status quo for the firm’s market position.
• Also will give us an enhanced image of firm in front of the product users.

POSITIONING STRATEGY
(AGAINST USAGE AND ITS BENEFITS)
Definition
• Usage of product is that how and when this product can be used for its higher benefits
and outcomes.
• Benefits are pointed towards its hygienic and health customers
Objectives
• To get the right customers from the market
• To grow through making customer know the different usages of the product
Requirements
• This will help Dairy Queen Milk to grow with the help of finding new customers
• It also does carry some extra focuses along with it, so customers will be identified with
its more benefits that can help Dairy Queen Milk to retain that growth.
Expected results
• This will help us grow in our existing market through new customers
• This will also give us new customers thus increasing our overall market and helping us
taking our product to a growth route
• Increased sales, market share, new product uses, profitability and growth

PROMOTIONAL STRATEGY
Definition
• It is something that make customer recognize the offering of a company
Objectives
• To build up a long term image for a product
Final Project of Dairy Queen 55

• To improve sales, as customer will come to know about the product in detail
Requirements
• It will help Dairy Queen Milk making customer believe that with such advertising
campaigns they have come up with some good quality product.
• Helps reaching geographically dispersed customers.
Expected results
• Growth in sales.
• Market share will go up.
• Brand recognition is associated with advertisement.

SUMMARY
After completion of the project, Dairy Industry is very attractive and there is a big room
for improvement and for the new products. Growth rate is very high and many companies are
coming and many new products are also coming in the market. Competition level is very high
and customer and suppliers powers are increasing. Media can play important role in the game
and who will use it he will be the top position. Haleeb is competing with Nestle. Nestle is multi
national company and it has many resources and they are using these resources. But, prices are
very high and it will increase continuously that way new entry will be may stop. Now, Nestle
shift his focus on the powder milk and water also. Our weaknesses will be remove and we will
get more out off total number of share from the market. Dairy Queen’s strategy is good but there
is a gap in the implementation of the strategy. Now, Dairy Queen is becoming nation wide
product and it’s move is towards Nestle. Multan, Fisal Abad, Sahiwal and Rawalpinde are the
cities where Dairy Queen’s share is high. Penetration and awareness of the Dairy Queen is very
important variables of its strategy. Customer wants low price and quality product these are two
main requirements which is being fulfilled by the Dairy Queen. Advertising is very important in
the life of a product and our new strategy is based on the advertising. TOM is very important
factor from the customer side when ever he will purchase UHT milk our product name will be in
his mind and he will purchase our product. Dairy Queen’s USP is low price milk and we will
cash this USP.
Final Project of Dairy Queen 56

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