INTERNSHIP REPORT

ON
KHALID MODREN INDUSTRIES (PVT) LTD.
(GHEE & COOKING OIL MILLS)
Specialization in Marketing

Submitted To
The Chairman
Department of Business Administration

Submitted By:
Name : MUHAMMAD UMAR FAROOQ
Roll No. Q580408
Reg. No. 01-PBR-0379
Mailing Address: 26, Quaid-e-Azam Colony,
Hasilpur
Contact No#: 03036341366/0333-6341366
Date of Submission: 15 Oct, 2014

ALLAMA IQBAL OPEN UNIVERSITY- ISLAMABAD

 ACKNOWLEDGMENTS

No one writes alone. So I would like to thanks all those members who
proved to be a great source in completion of report. They have been a
source of knowledge for me as they helped me much in understanding the
report.
I especially thank
to my parents, because looked after me and brought me up
to my wife who helped me to compose the project.
To the staff of KMI especially MR. ALTAF HUSSAIN, Manager
Administration, Khalid Modern Industries (Pvt) Ltd. and teachers.
 PREFACE

In order to be able to cope with the changing environment it is

necessary to have some practical experience. As a student of Business
Administration we have to pass through a series of various managerial
techniques. During this practical course we are provided with an opportunity
to learn that how the theoretical knowledge can be implemented in practical
grounds.

I was selected to do my internship in Khalid Modern Industries (Pvt.)

Limited. I worked there for six weeks & it gave me a greater practical
knowledge about the operations of KMI (Pvt.) Limited. In the following
pages I have narrated my experience, observations & all the working
activities which I observed during my six weeks internship.

MUHAMMAD UMAR FAROOQ

Q580408
01-PBR-0379
 LIST OF CONTENTS
CONTENTS PAGE #
ACKNOWLEDGMENT II

PREFACE III
EXECUTIVE SUMMARY 2

MISSION STATEMENT 5

VISION STATEMENT 6

INTRODUCTION OBJECTIVES
7 OF ST

OVERVIEW OF THE ORGANIZATION 8

BRIEF HISTORY 8

NATURE OF THE ORGANIZATION 9

PRODUCATION PROCESS 9

BUSINESS VOLUME 12

PROFILE OF EMPLOYEES 13

PRODUCT LINES 14

WHAT IS COOKING OIL 16

MODREN LAUNDRY SOAP 25

ORGANIZATION STRUCTURE 26

MAIN OFFICES 28

MARKETING OPERATIONS 28

STRUCTURE OF THE MARKETING DEPARTMENT 29

NUMBER OF EMPLOYEES IN THE MARKETING DEPARTMENT 29

MARKETING OPERATIONS 30

FUNCTIONS OF THE MARKETING DEPARTMENT 32

MARKETING STRATEGY 33

PRODUCT PLANNING, DEVELOPMENT & MANAGEMENT 33

PRICING STRATEGY 33

DISTRIBUTION STRATEGY 36

PROMOTIONAL STRATEGY 37

CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS RELATING TO

40
PRACTICAL EXPERIENCES
SUCCESS AND FAILURE OF DIFFERENT PRODUCTS OF THE
43
ORGANIZATION IN THE MARKET ALONG WITH REASONS

MAJOR COMPETITORS OF THE ORGANIZATION 45

FUTURE PROSPECTS OF THE ORGANIZATION 46

SHORT-FALLS/WEAKNESSES OF THE MARKETING DEPARTMENT 47

CRITICAL ANALYSIS OF THE MANAGEMENT PATTERNS OF THE

ORGANIZATION WITH REFERENCE TO MARKETING OPERATIONS, 47
WEAK AREAS WHICH NEED TO BE IMPROVED

CONCLUSIONS & RECOMMENDATIONS FOR IMPROVEMENT 49

REFERENCES & SOURCES 53

 LIST OF TABLES & ILLUSTRATIONS

TABLES/ILLUSTRATIONS PAGE #

FIGURE 1-5: Graphical representation of last 5 years trend in Sales.13

TABLE 1-5: Last Five years business volume of Khalid Modern..12

TABLE 1-1: Modern ghee product line / packing range.14

TABLE 1-2: Modern cooking oil product line / product range...15

FIGURE 1-6: How cooking oil Drived...18

TABLE 1-3: Modern laundry soap product line / product range.25

FIGURE 1-1: KMI organizational structure...27

FIGURE 1-2: Hierarchy of Marketing Department of Khalid Modern..30

TABLE 1-4: Moderns price adjustment strategies34

FIGURE 1-3: Consumer channel of Khalid Modern Industries.37

FIGURE 1-4: Modern push strategy...37

 EXECUTIVE SUMMARY

As a student of MBA I also got the chance to be a part of a reputed

business organization during my summer vacations. This practice by the
institutions is known as Internship Program. It is a compulsory part of our
studies and as per rules of the DBA, Allama Iqbal Open University
Islamabad for each and every student of MBA program.
This report is about my internship program with the KMI Pvt. (Ltd.)
an Edible Oil or Food Oil company working in Pakistan, at Hasilpur. In this
report I have discussed every aspect of the company regarding Marketing &
Sales department, which I observed and perceived during my internship
program.
In this report you will find the detail about the company right from its
incorporation to the current position. Along with it, the processes of
marketing and sales planning are also discussed in detail.
The internship program included work mostly in the Marketing and
Sales Department. However information for all departments is included in
this report. This report includes chapters on history of organization, its
management, and fields of activities, and recommendations for improvement
of Organization.
This report will serve to be an important document for the
organization. Recommendations for improvement of the organization are
also noted and they can serve to be beneficial for the organization.
 The best thing which is playing the most important role in their
success is the Sales Force. They called them the Front Line Tigers. The
Sales & Marketing system of KMI is integrated bottom to top. RSM
personally checks the work of every ASM, TSO, DSR by arranging the
meetings at the regional office 2 or 3 times in a month.
They are using the Marketing strategies Customer Pull and other
ATL and BTL techniques according to the situation arise. The company
have divided the whole country into 6 regions. Every region is separate from
the other in context of every thing. The basic priority of the company is the
best quality oil manufacturing and provision to the customers.
The sales representatives of KMI follows some specific rules about
the dealing with the shop keepers while suggesting the orders and during
checking the stock available at the outlet and the display of their product, if
display is not appropriate the DSR manage the display according to the
suggested pattern.
MODREN is known as the quality leader in the edible oil sector and
enjoying a very good repute in the market and in the food oil sector. They
are providing the services for every segment of the society by providing the
Ghee and Cooking oil according to their financial capabilities.
o Modren Ghee
o Modren Cooking Oil
o Modern laundry soap

The working of the front line sales force is checked by the continuous
visits of the officials in the markets. They design the promotion campaigns
according to the minds of that specific area which they want to attract. The
sales reports are sent to the regional office daily from the distributions.
KMI is the first and only company which is using the SPIDER
software for the management of sales. They check the sales on the basis of
number of SKUs ordered by the retailers and their prime objective is to get
maximum sales according to the SKU method.
Environmental Protection Bylaws state that it is mandatory for edible
oil and fats factories in Pakistan to have an effluent treatment plant so that
the environment is not damaged by the effluents from the factory. However
KMI is the only brand to have invested substantially in order to acquire this
plant and maintain it. This is MODRENs humble contribution towards
conserving and sustaining this natural resource. The treated effluent water
from the Effluent Treatment Plant at KMI meets the National Environmental
Quality Standards (NEQS) and is used for irrigation purposes within the
factory only.
 Mission statement

Their mission is to produce quality banaspati ghee/cooking oil and these

items at less prices and easily accessible in the market to customers and earn

maximum profit.
 VISION STATEMENT

Their vision is to stand in the line of first three top Banaspati Ghee /Cooking
oil manufacturing mills
INTRODUCTION

M/S Khalid Modern Industries (Pvt) Ltd (Ghee & Cooking Oil Unit) is a

vanaspati ghee and cooking oil manufacturing organization. It is situated in Hasilpur

Distt: Bahawalpur. It has production capacity 150 M.Tons ghee/cooking oil daily.

Khalid Modern Industries (Pvt) Ltd. (KMI) is a group of organizations having

two cotton units, two oil mills, one solvent extraction plant and one ghee/cooking oil

mills in Hasilpur. KMI group also owns a sugar mills in Peshawer namely Khazana

Sugar Mills, Peshawer.mission statement

Khalid Modern prepares Vegetable Ghee, Cooking oil and Laundry Soap as a

bye product. The major ingredients of Modern ghee are Palm oil, Palm Olien,

Cottonseed oil and/or Soya bean oil and the major ingredients of Modern Cooking oil

are Canola oil, Sunflower oil and/or Soya bean oil.

7. OVERVIEW OF THE ORGANIZATION

7.1 Brief History

M/S Khalid Modern Industries (Pvt) Ltd. is located in Hasilpur.

KMI (Khalid Modern Industries (Pvt) Ltd.) has started their business in January, 1990

as a cotton factory & oil mills.

After experience of 8 years of an organization, KMI entered in the field of

Vanaspati ghee/Cooking oil and a ghee/cooking oil unit is established at Vehari road,

Hasilpur in 1998. Its production capacity is 150 M.Tons daily.

KMI group purchased a sugar mills in peshawer namely Khazana Sugar

Mills during auction in 1999. In February 2002, this group also purchased another

cotton factory (Ex: Ali Cotton factory, Chhona wala road, Hasilpur) during auction.

The success story of KMI group doesnt stop here, it goes/is going ahead.

In 2003, KMI group established a Solvent extraction plant in the premises of cotton

factory at Vehari road Hasilpur.

In Hasilpur, the major unit is Ghee/Cooking Oil Unit. However 5 units are

working under the name of Khalid Modern group of Industries (Pvt) Ltd. as follows:

1) Khalid Modern Industries (Pvt) Ltd. (Cotton Unit 1) Vehari road, Hasilpur

2) Khalid Modern Industries (Pvt) Ltd. (Ghee/Cooking Unit) Hasilpur

3) Khalid Modern Industries (Pvt) Ltd. (Cotton Unit 2)

Chhona Wala road, Hasilpur

4) Khalid Modern Industries (Pvt) Ltd. (Solvent Extraction Unit) Hasilpur.

5) Khazana Sugar Mills, Peshawer

7.2 Nature of the Organization

KMI is basically a manufacturing organization. Vegetable ghee & cooking

oil is prepared according to the standards set by Pakistan Standard & Quality Control

Authority (PSQCA). This vegetable ghee/cooking oil manufacturing concern is a

member of PVMA (Pakistan vanaspati manufacturers association).

Vegetable ghee is prepared from Palm Oil, Palm Olien, Cotton Seed Oil

and/or Soya Bean Oil. These ingredients are purchased from local or international

market, processed, prepared and then packaged vanaspati ghee according to PSQCA

standard for sale.

PRODUCTION PROCES S
Khalid Modern produces Vegetable Ghee, Cooking oil and Laundry Soap as a bye

product. The major ingredients of Modern ghee are Palm oil, Palm Olien, Cottonseed

oil /or Soya bean oil and the major ingredients of Modern Cooking oil are Canola oil,

Sunflower oil and/or Soya bean oil. These items are purcased from national and

international market, , processed, prepared and then packaged according to PSQCA

standard for sale.

In production process the imported oil& national oil is stored in

storage . This in dustry has 8 storage tanks . The total storage capacit y of

these tanks is 4320 M.ton. per tank storage capacit y is 540 M ton. In

Pakistan this industry is the second big storage capacit y in ghee &

cooking oil industry.

De-Gumming

The first step is the removal of gummy matter such as phospholipids and lipoproteins etc.

from raw soybean or cottonseed oil. It is accomplished by exposing the oil to water and

adding the phosphoric acid at 50oC. As a result precipitate of gum is generated which is

removed from the

Neutlizer:

Pre-neutralization process is done to remove FFA from raw oil. Caustic Soda solution

proportionate to FFA is mixed with oil. This results in the neutralization of the FFA. The

resulting soap stock is allowed to settle and then drained out from the refining kettle.

Three hot water washings are given to remove residual soap.

Bleacher:

The purpose of oil bleaching is to eliminate its colouring pigments through the adsorption

on bleaching earth. Pak earth is used for bleaching because of its excellent adsorption

power. The bleached oil containing pak earth is passed through a series of filter presses to

remove the spent earth.

Auto Clay:

Hydrogenation process, is, the hardening of oil to. Reduce its UN: saturation. At the same

time, it improves the stability of the product against its oxidation. Chemically, the degree

of un-saturation decreases by passing hydrogen gas through oil in-the presence of nickel

catalyst at 150oC.
Deodorization:

Most of the odorous substances 'along with FFA, sterols, to copherols, saturated and

unsaturated hydrocarbons and pesticides are stripped out by injecting dry steam into oil at

235 -245oC. Citric acid is also added to remove the odour. After deodorization, the

deodorized oil is cooled in the decooler to about 85oC. The remaining odorous

substances are removed during the de-cooling under vacuum. After cooling the hard oil is

passed through a final filter press called "Polish Filter", which removes undissolved citric

acid, remaining particles of the-pak earth :or -nickel catalyst, and any other fine

impurities. It also reduces the intensity of the final colour of the oil/ghee.

Final Filtration:

After deodorization process the oil is passed through the final filtration.

Finished Storage Tanks:

Then the oil is store in the finished storage tanks.

Packing section:

In this section the Ghee is charged to the packing section. All the packing is done with

the automatic machines.

Cold Store:

The Ghee is refined at high temperature so it is most important step of the ghee

manufacturing. In cold room high compressor is use for cooling.

Laboratory tests

For providing the good qualit y banaspati ghee in the market the oil is tested

in the laboratory according to the pakistan standard and quality control

FFA Test 0.2%maximum

Moisturiz 0.1%maximum

Melting point 35.5to36 degree centigrade

Vitamin tests A&D vitamin tests

Business Volume

The current average sale of KMI is 2500-3000 M.Tons per month. Thus

the total turnover is 155-185 million rupees per year. Modern has divided their market

in two zones:

Zone 1: For Faisalabad/Upper Punjab region

Zone 2: For Southern Punjab region

The companys last five years business performances are given in tabulated and

graphical form as follows: (Table 1-5 & Figure 1-5).

TABLE 1-5: Last five years business volume of Khalid Modern

AVERAGE SALES/
Sr. TOTAL SALES
YEARS per MONTH
No (M. TON)
(M. TON)
1 2005-06 9600 800

2 2006-07 9000 750

3 2007-08 8700 725

4 2008-09 8580 715

5 2009-10 8400 700

 FIGURE 1-5: Graphical representation of last 5 years trend in Sales.

Profile of Employees

The organization setup comprises of a Production department, a

Mechanical department, Sales & marketing department, a Finance department, an

Administrative department & Accounts department. Each department has its own

team and is guided and monitored by the department head. Major employees profile is

as under:

Mr. Mehmood-ul-Hassan: General Manager

Mr. Shahid Ashraf : Administration Manager

Mr. Muhammad Akram: purchase Manager

Mr. Altaf Hussain: Finance Manager

Mr. Muhammad Iftikhar: Production manager

Mr. Anwar Ali Marketing manager

In addition, more than 196 employees are working in different departments and sections

of KMI (Ghee/Cooking Oil Unit).

7.3 Product Lines

Modern has simple product lines in the field of Vegatable ghee, Cooking oil

and Laundry soap. Vanaspati ghee and cooking oil product lines consist of Modern

Banaspati, Modern cooking oil and Modern Pakwan oil respectively. Table 1-1 & Table

1-2 shows vegetable ghee & cooking oil product line/packing range respectively.

TABLE 1-1: Modern ghee product line / packing range

PRODUCT LINE
PACKING RANGE
MODERN BANASPATI

16 Kg Tin

10 Kg Tin
Tin Packs
5 Kg Tin

2.5 Kg Tin

16 Kg B/C

10 Kg B/C
Bucket Packs
5 Kg B/C

2.5 Kg B/C

10 Kg C/N 12 Kg C/N

1 Kg X 10Pouches 1 Kg X 12 Pouches
Carton Packs
X 20 Pouches Kg X 24 Pouches

X 40 Pouches X 48 Pouches
TABLE 1-2: Modern cooking oil product line / packing range

PRODUCT LINE
PACKING

RANGE MODERN COOKING MODERN PAKWAN

OIL OIL

16 Litre Tin

10 Litre Tin
Tin Packs 4 Litre Tin
5 Litre Tin 2 Litre Tin

2.5 Litre Tin

1 Litre X 5 Pouches
Carton & Bottle
1 Litre X 10 Pouches 1 Litre X 10 Pouches
Packs
3 Litre Bottle
What is Cooking Oil?

Background:

Cooking oil consists of edible vegetable oils derived from olives, peanuts, and

Sunflowers , to name just a few of the many plants that are used. Liquid at room

temperature, cooking oils are sometimes added during the preparation of processed foods

. They are also used to fry foods and to make salad dressing.People in many regions

began to process vegetable oils thousands of years ago, utilizing whatever food stuffs

they had on hand to obtain oils for a variety of cooking purposes.

Early peoples learned to use the sun, a fire, or an oven to heat oily plant products

until the plants exuded oil that could then be collected. The Chinese and Japanese

produced soy oil as early as 2000 B.C., while southern Europeans had begun to produce

olive oil by 3000 B.C. In Mexico and North America, peanuts and sunflower seeds were

roasted and beaten into a paste before being boiled in water; the oil that rose to the

surface was then skimmed off. Africans also grated and beat palm kernels and coconut

meat and then boiled the resulting pulp, skimming the hot oil off the water. Some oils

have become available only recently, as extraction technology has improved. Corn oil

first became available in the 1960s. Cotton oil, watermelon seed oil, grapeseed oil, and

others are now being considered as ways to make use of seeds that were, until recently,

considered waste.

The first efforts to increase output were undertaken independently in China,

Egypt, Greece, and Rome, among other places. Using a spherical or conical stone mortar
and pestle, vertical or horizontal millstones, or simply their feet, people began to crush

vegetable matter to increase its available surface area. The ground material would

subsequently be placed in sieves such as shallow, flat wicker baskets that were stacked,

sometimes as many as 50 high. The matter was then pressed using lever or wedge

presses. The Greeks and Romans improved this process by introducing edge runners to

grind and a winch or screw to operate a lever press. Their method was used throughout

the Middle Ages.

Refinements of this approach included a stamper press that was invented in

Holland in the 1600s and used until the 1800s to extract oil, a roll mill invented by

English engineer John Smeaton in 1750 to crush vegetable matter more efficiently, and

the hydraulic press, invented by Joseph Bramah in England. The first improved screw

press was invented by V. D. Anderson in the United States in 1876. His Expeller (a trade

name) continuously operated a cage press. When vegetable matter was placed in

Anderson's closed press, the resultant oil drained out of slots in the side. A screw

increased the pressure through the cage toward a restricted opening.

Enhancements in grinding and pressing plant matter were followed by

improvements in extracting the oil. In 1856, Deiss of England obtained the first patent for

extraction of oil using solvents, following experiments by Jesse Fisher in 1843. At first,

solvents such as benzene were pumped through the material and drained through false

perforated bottoms. Later, Bollman and Hildebrandt of Germany independently

developed continuous systems that sprayed the material with solvent. Both methods were
eventually improved, and today solvent extraction is standard in the vegetable oil

industry.

FIGURE 1-6: Graphical representation How Cooking oil Drived

Cooking oil manufacture involves cleaning the seeds, grinding them, pressing, and

extrading the oil from them. In extracting, a volatile hydrocarbon such as hexane is used

as a solvent.

After extracting, the oil is refined, mixed with an alkaline substance, and washed

in a centrifuge. Further washing and refining follows, and then the oil is filtered and/or

distilled. It is then ready for packaging.

Over time extracting vegetable oils has become more and more efficient. The very

earliest methods of pressing the vegetable matter probably obtained, at best, 10 percent of

the oil available. On the other hand, more modern methods involving solvent extraction

can extract all but. 5 to 2 percent of the oil.

Raw Materials

The average bottle of cooking oil contains vegetable oil, with no additives,

preservatives, or special flavorings. The oil comes from various parts of plants, in most

cases from what are commonly called seeds (including sunflower, palm kernel, safflower,

cotton, sesame, and grapeseed oils) or nuts (including peanut, soybean, almond, and

walnut oils). A few special cases involve merely squeezing the oil from the flesh of the

fruit of the plant. For example, coconut oil comes from the coconut's white meat, palm oil

from the pulp of the palm fruit, and olive oil from the flesh of fresh olives. Atypically,

corn oil is derived from the germ (embryo) of the kernel.

The Manufacturing Process

Some vegetable oils, such as olive, peanut, and some coconut and sunflower oils,

are cold-pressed. This method, which entails minimal processing, produces a light,

flavorful oil suitable for some cooking needs. Most oil sources, however, are not suitable

for cold pressing, because it would leave many undesirable trace elements in the oil,

causing it to be odiferous, bitter tasting, or dark. These oils undergo many steps beyond

mere extraction to produce a bland, clear, and consistent oil.

Cleaning and grinding

1. Incoming oil seeds are passed over magnets to remove any trace metal before

being dehulled, deskinned, or otherwise stripped of all extraneous material. In the

 case of cotton, the ginned seeds must be stripped of their lint as well as dehulled.

In the case of corn, the kernel must undergo milling to separate the germ.

2. The stripped seeds or nuts are then ground into coarse meal to provide more

surface area to be pressed. Mechanized grooved rollers or hammer mills crush the

material to the proper consistency. The meal is then heated to facilitate the

extraction of the oil. While the procedure allows more oil to be pressed out, more

impurities are also pressed out with the oil, and these must be removed before the

oil can be deemed edible.

Pressing

3. The heated meal is then fed continuously into a screw press, which increases

the pressure progressively as the meal passes through a slotted barrel. Pressure

generally increases from 68,950 to 20,6850 kilopascals as the oil is squeezed out

from the slots in the barrel, where it can be recovered.

Extracting additional oil with solvents

4. Soybeans are usually not pressed at all before solvent extraction, because they

have relatively little oil, but most oil seeds with more oil are pressed and solvent-

treated. After the initial oil has been recovered from the screw press, the oil cake

remaining in the press is processed by solvent extraction to attain the maximum

yield. A volatile hydrocarbon (most commonly hexane) dissolves the oil out of

the oil cake, which is then recovered by distilling the light solvent out. The Blaw-

Knox Rotocell is used to meet the demands of the United States soybean oil
 industry. In using this machine, flakes of meal are sent through wedge-shaped

cells of a cylindrical vessel. The solvent then passes through the matter to be

collected at the bottom. Also still in use by a significant number of manufacturers

is the Bollman or Hansa-Muhle unit, in which oilseed flakes are placed in

perforated baskets that circulate continuously. The solvent percolates through the

matter which is periodically dumped and replaced.

Removing solvent traces

5. Ninety percent of the solvent remaining in the extracted oil simply evaporates,

and, as it does, it is collected for reuse. The rest is retrieved with the use of a

stripping column. The oil is boiled by steam, and the lighter hexane floats upward.

As it condenses, it, too, is collected.

Refining the oil

6. The oil is next refined to remove color, odor, and bitterness. Refining consists

of heating the oil to between 107 and 188 degrees Fahrenheit (40 and 85 degrees

Celsius) and mixing an alkaline substance such as sodium hydroxide or sodium

carbonate with it. Soap forms from the undesired fatty acids and the alkaline

additive, and it is usually removed by centrifuge. The oil is further washed to

remove traces of soap and then dried.

7. Oils are also degummed at this time by treating them with water heated to

between 188 and 206 degrees Fahrenheit (85 and 95 degrees Celsius), steam, or
 water with acid. The gums, most of which are phosphatides, precipitate out, and

the dregs are removed by centrifuge.

8. Oil that will be heated (for use in cooking) is then bleached by filtering it

through fuller's earth, activated carbon, or activated clays that absorb certain

pigmented material from the oil. By contrast, oil that will undergo refrigeration

(because it is intended for salad dressing, for example) is winterizedrapidly

chilled and filtered to remove waxes. This procedure ensures that the oil will not

partially solidify in the refrigerator.

9. Finally, the oil is deodorized. In this process, steam is passed over hot oil in a

vacuum at between 440 and 485 degrees Fahrenheit (225 and 250 degrees

Celsius), thus allowing the volatile taste and odor components to distill from the

oil. Typically, citric acid at. 01 percent is also added to oil after deodorization to

inactivate trace metals that might promote oxidation within the oil and hence

shorten its shelf-life.

Packaging the oil

10. The completely processed oil is then I V measured and poured into clean

containers, usually plastic bottles for domestic oils to be sold in supermarkets,

glass bottles for imports or domestic oils to be sold in specialty stores, or cans for

imports (usually olive oil).

By Products/ Waste
 The most obvious byproduct of the oil making process is oil seed cake. Most

kinds of seed cake are used to make animal feed and low-grade fertilizer; others are

simply disposed of. In the case of cotton, the lint on the seed is used to make yarn and

cellulose that go into such products as mattresses, rayon, and lacquer. Coconut oil

generates several byproducts, with various uses: desiccated coconut meat(copra) is used

in the confectionery industry; coconut milk can be consumed; and coir, the fiber from the

outer coat, is used to make mats and rope. Since corn oil is derived from a small portion

of the entire kernel, it creates corn meal and hominy if it is dry milled, and corn starch

and corn syrup if it is wet milled.

Lecithin is a byproduct of the degumming process used in making soybean oil.

This industrially valuable product is used to make animal feed, chocolate, cosmetics,

soap, paint, and plasticsto name just a few of its diverse uses. Recent research has

focused on utilizing the residual oil seed cake. The cake is high in protein and other

nutrients, and researchers are working to develop methods of processing it into a

palatable food that can be distributed in areas where people lack sufficient protein in their

diets. This goal requires ridding (through additional processing) the oil seed cake of

various undesirable toxins (such as gossypol in cotton seed, or aflatoxin in peanut meal).

Initial results are promising.

Quality Control

The nuts and seeds used to make oil are inspected and graded after harvest by

licensed inspectors in accordance with the United States Grain Standards Act, and the fat
content of the incoming seeds is measured. For the best oil, the seeds should not be stored

at all, or for a only very short time, since storage increases the chance of deterioration due

to mold, loss of nutrients, and rancidity. The seeds should be stored in well-ventilated

warehouses with a constantly maintained low temperature and humidity. Pests should be

eradicated, and mold growth should be kept to a minimum. Seeds to be stored must have

a low moisture content (around 10 percent), or they should be dried until it reaches this

level (dryer seeds are less likely to encourage the growth of mold).

Processed oil should be consistent in all aspects such as color, taste, and viscosity.

Color is tested using the Lovibund Tintometer or a similar method in which an

experienced observer compares an oil's color against the shading of standard colored

glasses. Experienced tasters also check the flavor of the oil, and its viscosity is measured

using a viscometer. To use this device, oil is poured into a tube that has a bulb at one end

set off by two marks. The oil is then drained, and the time required for the bulb to empty

is measured and compared to a chart to determine viscosity.

In addition, the oil should be free of impurities and meet the demands placed upon

it for use in cooking. To ensure this, the product is tested under controlled conditions to

see at what temperature it begins to smoke (the smoke point), flash, and catch on fire;

warnings are issued appropriately. To allow its safe use in baking and frying, an oil

should have a smoke point of between 402 and 503 degrees Fahrenheit (204 and 260

degrees Celsius). The temperature is then lowered to test the oil's cloud point. This is

ascertained by chilling 120 milliliters of salad oil to a temperature of 35 degrees

Fahrenheit (zero degrees Celsius) for five and a half hours, during which period

acceptable salad oil will not cloud.

Before being filled, the bottles that hold the oil are cleaned and electronically

inspected for foreign material. To prevent oxidation of the oil (and therefore its tendency

to go rancid), the inert (nonreactive) gas nitrogen is used to fill up the space remaining at

the top of the bottle.

Modren Laundry Soap

Oil dirt is obtained as a bye-product from ghee/cooking oil preparation. Thus Modern

Laundry Soap is prepared from the oil dirt and other necessary ingredients. This soap is

used for cleaning cloths. Table 1-3 shows laundry soap product line/packing range.

TABLE 1-3: Modern laundry soap product line / packing range

PRODUCT LINE
PACKING

RANGE MODERN LAUNDRY SOAP

350 grams X 20 Cakes (7 Kg Carton)

Carton Packs
350 grams X 40 Cakes (14 Kg Carton)

450 grams X 2 Cakes

Polythene pack
(900 grams polythene shopper pack)
8. ORGANIZATIONAL STRUCTURE

The organization has a departmental structure. Each department has its own

team that is guided and monitored by the departmental head. One admin manager and a

general manger administer, manage and control all departments. The major departments

of KMI are as follows:

Production department

Mechanical department

Sales & Marketing department

Finance department

Administration department

Purchase department

Accounts department

Electrolizer department

Figure 1-1 shows the complete organizational hierarchy of Khalid Modern

Industries (Pvt) Ltd.

Main Offices

KMI has two main offices:

Factory Office

Head Office

Factory office is located in the premises of factory at Vehari road Hasilpur.

Head office is located in H-11, Islamabad where the company chairman/managing

director, company secretary and other supporting employees are monitored and

controlled the whole company business activities.

8.1 Marketing Operations

No company can survive without finance. In KMI, financial department

provides necessary funds to manufacture and market vanaspati ghee/cooking oil that

fulfills the customer demands and needs. Necessary resources are provided to

production department to develop a product that meets the market demand.

Khalid Modern uses distribution system for smooth marketing operations.

Distributors are appointed by the Sales & marketing department in a specific territory. At

present, more than 100 distributors are working with the company. Sales & marketing

department takes orders from these distributors then Companys fleet of transport

delivers these orders/stocks to distributor without any freight cost. Distributors

 distribute/resell these stocks to retailers and customers in their specified territory with

support of companys promotional/publicity material and sales force. Thus KMI market

their products from the point of origin to the point of sale even to the point of usage

through the above-specified marketing operations.

9. STRUCTURE OF THE MARKETING DEPARTMENT

Sales & marketing department of KMI is guided and monitored by the sales &

marketing manager and it works under the supervision of General Manager. It is located

in the premises of ghee/cooking oil mills Hasilpur.

9.1 Number of Employees Working in the Marketing Department

30 employees are working in the Sales & Marketing department. The main

posts are Sales & Marketing manager, Brand mangers, Sales officers, Sales supervisors,

Sales representatives and Sales man. Figure 1-2 shows the hierarchy of marketing

department of Khalid Modern Industries.

FIGURE 1-2: Hierarchy of Marketing Department Of Khalid Modern

Sales & Marketing

Manager

Product X Product Y
Brand Manager Brand Manager

Sales Supervisor Sales Supervisor Sales Supervisor Sales Supervisor

BWP Region BWN Region FSD Region MLT Region

Sales Officers Sales Officers Sales Officers Sales Officers

Sales man Sales man Sales man Sales man

9.2 Marketing Operations

KMI market their brands through distribution network in all cities of

Southern Punjab and major cities of Upper Punjab. Distributors are appointed by

observing/analyses of their financial condition and past ghee business experience.

 Distributors lift their stocks according to their set target for the month.

According to company policy, company offers a credit limit of 15 days from the date

delivery to distributors. However distributors may lift stocks on cash payment basis with

a benefit/discount of Rs. 5/16 Kg ghee. Mostly the company delivers these stocks

thorough their fleet of transport consisting 20 Mazda & Hino trucks. Distributors

resell/distribute these stocks to retailers and customers in their specified territory/market

with allowed profit margin.

KMI provide publicity material (Banners, Posters, Publicity pad/Cash

memos, Calendars & Wall clocks) to distributors, uses big & small sign boards,

electronic boards & cable ads for the promotion of their products.

Company sales representatives introduce/market company products with

support of distributors. They represent their company and products. Sales

representatives also ensure the easy availability company products in the market. So

this is how the marketing operations of KMI run for smooth delivery of company

products to customers.
10. FUNCTIONS OF THE MARKETING DEPARTMENT

Sales & Marketing department of KMI performs many functions in phase

marketing strategy, product planning, development & management, pricing strategy,

distribution strategy and promotional strategy.

10.1 Marketing Strategy

Basically, Khalid Modern Industries (Pvt) Ltd. pursues Focus strategy of

marketing. KMI focuses its efforts on serving few geographic and demographic

segments well rather than going after the whole market/whole country. The Province

Punjab market has been divided into regions and cities to market Modern Banaspati,

Modern cooking oil & Modern Pakwan oil. Modern is localizing their products, sales

promotions and sales efforts to fit the needs of individual regions. Modern has divided

their market into two zones:

Zone 1 (Upper Punjab)

Zone 2 (Southern Punjab)

Zone 1 (Upper Punjab):

Most of the zone 1 consumers like tight shape ghee (hard ghee, not liquid

shape) having quality grains of ghee. Modern produces a little bit hard mall/ghee for

this zone. Sometimes Modern also pursues low pricing competition in this zone and

offers special price discount to encounter the price competition.

 Zone 2 (Southern Punjab):

This home market is very important for the company strategically. Modern

focuses more on this region and captures large sales volume in this zone. Modern offers

two layers ghee (Upper layer is liquid, lower layer is a little bit hard/tight having

quality grains of ghee) as Zone 2 consumers demand for such quality. Thus company

produces separate production quantity/badges for the two zones.

10.2 Product Planning, Development & Management

Sales & marketing department also plans and manage new/existing

products. A well-defined idea is generated, developed concept and then this product

concept is converted into physical product. Here marketing, engineering and production

department works together to develop the product concept into a physical product. In

2000, marketing & production department planned and developed a new quality of ghee

(Hard shape ghee having quality grains but normal melting point as other ghee brands)

for zone 1. In 2001, Modern also planned/developed a new variety of cooking oil called

Pakwan for commercial frying and for low-income home consumers.

10.3 Pricing Strategy

KMI mostly uses competition-based pricing strategy. The major rivals of

Modern include Sultan Banaspati, Shama Banaspati, Asia Banapati, Shehbaz Banaspati

& Niamat Banaspati. Modern bases its prices largely on competitors prices with less

attention paid to its own cost or demand. The company also pursues price adjustment

strategies as per market demand and/or company requirement.

 Modern Price Adjustment Strategies

KMI usually adjust their basic prices to account for various customers

differences and changing situations. The company adopts three price-adjustment

strategies as their requirement. Table 1-4 summarizes Moderns price-adjustment

strategies.

I. Discount pricing

Cash discount

Quantity discount

II. Promotional pricing

III. Geographical pricing

TABLE 1-4: Moderns price adjustment strategies

STRATEGY DESCRIPTION

Discount prices Reducing prices to reward customer/distributor responses

such as paying early to KMI within three days.

Promotional pricing Temporary reducing Modern prices to increase short-run

sales of products.

Geographical pricing Adjusting prices of Modern to account for the geographical

location of customers

I. Discount Pricing
 KMI adjust their basic prices to reward customers for certain responses such

as early payment of bills within three days, volume purchases. These price adjustments

can take many forms:

Cash Discount

A cash discount is a price reduction to buyers who pay their bills within

three days. A typical example is Rs. 5/3 net 15, which means although payment is due

within 15 days, the buyer can deduct Rs. 5 per 16 Kg tin if the bill is paid within 3

days.

Quantity Discount

KMI sometimes offer a price reduction to dealers/buyers on lifting large

volumes of stock. For example, KMI offer to dealers/buyers Rs 2675 rate per 16 kg tin

for less than 20 M.Tons, Rs. 2660 per 16 Kg tin for 20 M.Tons or more stock lifting.

3.5 % trade discount for those distributors who hold specific allowed credit limit

permanently during business tenure with KMI and pay over-limit amount/ routine bills

within 15 days.

2.5 % trade discount for those distributors who hold excess amount than allowed credit

limit or hold over-due company bills or who do not clear company bills within 15 days

(allowed credit limit); with an agreement to clear over-due amounts in due course of time

or pay bills within 15 days otherwise the company have the right to deduct 1 % from this

trade discount offer.

II. Promotional Discount

KMI temporarily price their products below listed price on some occasions

to draw more customers. Promotional pricing takes several forms such as cash rebates

to dealers who buy within specified time & on special events. For example, Ramzan

month pricing & Eid days pricing to increase short-run sales.

III. Geographical Pricing

KMI charges same prices to all customers/dealers regardless of their

location. Thus the company charges freight-absorption pricing. Company absorbs all of

the actual freight charges in offers to get more business.

10.4 Distribution Strategy

KMI (Khalid Modern Industries (Pvt) Ltd.) sell its products through

exclusive distribution. Company agrees to sell its products only to a single wholesaling

middleman in a given market/ territory. Exclusive dealing also includes exclusive

territorial agreements. KMI may not agree to sell to any other middleman in a given

area; and the buyer/distributor may agree to sell only in its own territory as agreement.

In this practice, KMI tries to keep its dealers not selling outside its boundary/territory.

Thus the indirect channel is used to market the companys products to

ultimate consumers. Figure 1-3 shows consumer distribution channel of KMI. This

channel contains two intermediary levels: a wholesaler & a retailer.

 Producer Wholesaler Retailer Consumers

FIGURE 1-3: Consumer channel of Khalid Modern Industries.

10.5 Promotional Strategy

Modern has set up a marketing office to continue working on local

advertising, promotion, personal selling and community events. The company uses the

affordable method for promotional budget. They spend what the management thinks the

company can afford. The company has adopted the following Promotional mix strategy

and Modern promotional mix.

Promotion Mix Strategy

Khalid Modern Industries have choosed the push strategy for promotion.

Figure 1-4 shows push strategy the company adopts:

KMI marketing activities Resellers marketing activities

Khalid Modern Wholesalers

& Consumers
Industries Retailers

FIGURE 1-4: Modern push strategy

 Modern push strategy involves pushing the products through distribution

channels to final consumers by using sales force and trade promotion. So Modern

directs its activities (primarily personal selling and trade promotion) toward channel

members to induce them to carry the product and to promote it to final consumers.

Modern Promotional Mix

Khalid Modern uses a blend of promotional tools personal selling, trade

promotions and advertising.

Personal Selling

KMI has a sales force of 20 people, headed by their area sales supervisors.

They market company brands in their specified market territory, build longer customer

relationships, observe customers needs and preferences; and make quicker adjustments

or send proposals/input to marketing department.

Trade Promotions

Modern trade promotions are targeted toward wholesalers and retailers.

Modern uses many trade promotion tools: Discount or price-off, free speciality-

advertising items. The company offers a straight discount off the list price during a

stated period of time such as Rs. 15/ 16 kg tin discount. It encourages dealers to buy in

bulk quantity.
 KMI provide dealers specialty advertising items: publicity pads/ memo

pads, wall clocks, modern caps, calendars, key rings, banners/posters, modern pencils

and others.

Advertising

Ziaqa, Ghazayiat Aur Miyar Aik Saath

Lazat, Sihat Aur Zaiqa Ki Baat, Modern Banaspati Kai Saath

The advertising objective of Modern is basically to inform and persuade

people. The company uses print, electronic and outdoor media for advertising. Ads are

published in The Daily Khabrain, The Daily Express and The Daily Nawa-y-Waqat

on some special occasions. Cable advertising is telecasted in different cities of Southern

Punjab or in the cities where the company market their brands.

In addition, Modern uses big sign boards, banners, printed pan flex sheets,

shop boards; mazda/hino trucks with painting ads and special wall chalking for outdoor

advertising.
11. CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS

RELATING TO PRACTICAL EXPERIENCES.

No one strategy is enough for a company but KMI uses only one focus strategy.

The main philosophy of focus strategy is A firm or an SBU concentrates on part of a

market and tries to satisfy it with either a very low-priced or highly distinctive products In

KMI, focus strategy hasnt implemented successfully in both the Zones (Zone 1 & Zone 2),

neither low price wise nor distinctive product wise. For example, I observed price

competition in Zone 1; other low-price brands are available against Modern like Yadgar,

Khiaban & Kousar Banaspati.

Planning & development is a major pitfall of the company. There is no separate

R & D department. Planning, development and management is also the responsibility of

marketing department. No satisfactory efforts have been taken yet regarding new product

planning, development and management.

The pricing strategy of the company represents a picture of competitors phobia,

with less or no attention to cost or demand. KMI doesnt take first initial step to price

changes. They always follow their competitors such as they dont reduce prices first

temporarily to increase short-run seasonal sales until their competitors do. Moreover they

dont provide rate rebate to their clients to save them from losses. Another major problem

lies with Modern, They couldnt gain confidence of trade and consumers thats why the

unit is not getting the required standard prices as their competitor Sultan is getting.
 The geographical policy of the company is not an adequate one. For long distance

areas like NWFP and other provinces, there is no clear company policy or framework to

deliver stocks/company products on what price-adjustments. Problems always occur when

a distributor is appointed in other than Punjab province area or far areas.

Although KMI offers all range of packing like poly packs, tins, buckets and others

but most of the packing ranges have some problems. Packing designs are not eye-catching;

labeling & literature is not correct and innovative. There is no stock management of all

packing ranges for in-time/smooth delivery to middleman.

KMI is providing 0.5% leakage of total amount of ghee to distributors.

However, incase of huge damage (leakage), there is no clear policy for this issue. Further,

there is no system to replace damage and substandard products/tins. Currently, the

company has no clear policy to keep oil reserves to maintain uniform quality ghee

standard in the market. Thus the company couldnt build uniform quality standard and is

failure to gain consumer loyalty.

Although the exclusive distribution strategy is the right strategy to market

ghee/cooking oil products but the whole company distribution system is not perfect one.

Most of the distributors have taken huge credit limits but they havent used it properly.

They have blocked the company payments and have invested it in other ghee company

brand that is the clear violation of exclusive distribution agreement. Ultimately, Company

has beard huge losses in shape of dead credit. Some of the distributors dont have past

ghee business experience; they also dont have enough resources to invest in the market.

So they keep credit themselves for other business use and dont provide enough credit to
retailers. Neither they dispatch payments in time, nor they lift enough stocks. These

defaulters are in huge number in the company distribution network.

In the promotional field, Khalid Modern lacks too much. Neither the company

hasnt set up a regular budget for promotional program, nor they have proper

planning/objective for promotional program. The company adopts only the push strategy.

They only push product through distribution channels to final consumers without any

efforts for consumer promotion but research shows that a blend of push & pull strategies

are appropriate for promotional program. Moreover the company used only personal

selling, trade promotions and advertising but with drawbacks. Personal selling force is

mostly unprofessional and untrained. These people are not selected on merit.

Public relation is an important element of integrated marketing communications

to build good relations with companys various public and to maintain good corporate

image. No planning is made yet to build good relations with various public of

Khalid Modern.

Advertising strategy consists of two major elements: creating advertising

message and selecting adverting media. Modern ad is not a creative advertising message

pursuing no clear adverting objectives. The company has no media planning, as there is

no separate media department. Just city cable is used for ad telecasting; no national level

channels like PTV, Geo etc. are used for electronic media. Firstly according to my study,

Modern has major concentration in far areas/side areas from the main city but the cable

has access to mostly in urban areas, not in rural areas. So cable media (electronic media)

has no full access to Moderns actual/prospecting consumer markets. Secondly, Cable ad

program is not managed appropriately. It is telecasted with joint support (50% share
each) of the company and distributor. Most of the distributors dont run company ads

continuously while others telecasted less but claimed more from the company. Thus

mostly a conflicting situation arises between the company and distributors on cable ad

payment, as there is no clear expenses limit/criteria for cable ad program. The company

has no specific advertising budget and planning. Thus the whole advertising program is

managed improperly.

Consumer promotion is another key area where the company has no efforts yet.

The management still mistakenly thinks that consumers will buy himself, no need to

persuade consumers; only products should available on every shop and presents enough

profit to trade members. But the product availability position is also very poor in

comparison with other rival company brands.

11.1 Success and Failure of Different Products of the Organization in the Market
along with Reasons.
The major products of Khalid Modern are Modern Banaspati, Modern

Cooking oil, Modern Pakwan oil & Modern Laundry Soap. Modern Banaspati, Modern

Cooking oil, & Modern Laundry Soap have some successes in the market. They have

success stories in their home market area i.e. Southern Punjab market. In this area,

Modern pushes their products till corner shops. The people of Southern Punjab like

Modern quality (liquid shape having quality grains). Consumer purchases cooking oil as

it offers standard quality on cheapest rate. Modern Laundary Soap is a pure Nirol. Pure

Nirol is manufactured by oil dirt of ghee mills and & it has much demand in the market.

Customers buy it quickly on net payments. It is used for washing cloths.

 Modern Pakwan Oil is a failure product of Khalid Modern. It is due to its

inferior quality, smell and dull color. The company manufactured it with Rapeseed and

Cottonseed oils but most of the oil consumers dont consume such oils.

11.2 Major Competitors of the Organization

The major competitors of Khalid Modern are as following:

Al-Hilal Vegetable Ghee & Oil Mills Multan.

Major Products: Sultan Banspati / Cooking oil

Hafiz Ghee & Oil Mills, Multan

Major Products: Shama Banaspati / Cooking Oil

Ahmed Oil & Ghee Industries, Rahim Yar Khan.

Major Products: Shehbaz Banaspati / Cooking oil, Right Banspati / C. Oil

Asia Ghee Mills, Bahawalpur

Major Products: Asia Banaspati / Cooking oil

Salwa Oil & General Industries, Okara

Major Products: Niamat Banaspati / Cooking oil

Madni Group of Industries, Faisalabad

Major Products: Kisan Banaspati / Cooking oil

.
11.3 Future Prospects of the Organization

Khalid Modern has taken a successful start and is now planning to broaden

their exposure having following future prospects:

To expand their market and to penetrate more in the existing market.

To launch media war (electronic media, print media and public

relations program) on national level to create a positive company

image and identity.

To improve their quality standard by producing a uniform quality level

of all major products.

12. SHORT-FALLS/WEAKNESSES OF THE MARKETING DEPARTMENT

Marketing department of Khalid Modern has many weaknesses. It lacks

professionalism. At the same time, professionals cannot ready to work in this only

order-following environment. Only few employees are professional, most of marketing

personnel are unprofessional and untrained. The company also has no employee-training

program. They are still in the selling stage. Thus they emphasize on selling instead of

marketing.

Another weakness of marketing department is the emphasis on short-term

tactics. They dont have long-term strategy/vision of their brands. They dont have a

successful information system. Marketing department performs extra duties such as

R & D, media planning etc. In this mismanage work system, marketing employees didnt

fulfill the requirements of every task.

12.1 Critical Analysis of the Management Patterns of the Organization with reference
to Marketing Operations, Weak Areas which need to be Improved.

Khalid Modern has functional structure, headed by different departmental

heads. There is lack of coordination in between different departments. Different heads

feel threat of power loss in case of coordination. Some workers find two different

orders for same work from two bosses due to informal workflow and informal internal

orders. So KMI lacks organization structure, systematic working environment and a

standard policy to create a framework for better working.

Authority responsibility & accountability are co-related with each other. The

department heads have much responsibility but having less authority. Sometimes they

cannot take routine decisions themselves. They have to consult again and again to

General Manger and/or MD. These management patterns effect marketing operations of

the company due to less coordination of production/purchase department with

marketing department, which results:

Mostly raw/packing material shortage.

A substandard quality not meets the market need & demand

Late delivery of finished goods to market.

Sales volume level disturbs due to late delivery to market.

So the company needs to improve:

Training and appraisal system of employees.

Intra/Inter department coordination to get smooth work flow and

assigns right authority to every individual

 Separate departments and work assignments for marketing,

advertising, R & D, HRM and media.

Horizontal and literal communication systems among different

departments of the organization.

13. CONCLUSIONS & RECOMMENDATIONS FOR IMPROVEMENT

Following conclusions may be drawn from the above study of this organization.

A. Khalid Modern has a weak management structure that represents a picture of

informal organization. Departmental structure is weak as some departments are

mixed with others.

B. Duties/responsibilities & authorities are not clearly assigned to each individual

employee for which they are held responsible. Moreover, tasks are not delegated

properly to each individual.

C. The company lacks coordination among different departments. Manual paper work

is much more and the same task is repeated in many departments, which is a paper

and time wastage activity. Computer systems are installed in only accounts

department but computer professionals are not hired. Thus dual work (manual &

computer) is still done by employees.

D. The company has no strategic vision/objective where it has to go or what it wants to

achieve. Just short-term goals and tactics are to be followed.

E. The company lacks a strategic policy for marketing. All departmental

heads/managers are working under short-term sales approach, not a marketing

approach. Thus no strategic policy has been developed yet to recover huge credit

losses of the company.

F. The company has a weak promotional program. It has no strategic objective, no

message/media planning to be pursued.

RECOMMENDATIONS FOR IMPROVEMENT

Modern may become a reputed national firm in case of adopting the following

necessary recommendations:

Restructuring & Redesigning: The whole organizational systems should be

redesigned and restructured. Its processes, procedures, strategies, policies and tactics

should also be restructured. Sales & Marketing department need special attention and

it also should be restructured and redesigned. Marketing department should not be

mixed with other departments like R & D department and media department.

Strategic Planning: A comprehensive strategic planning should be made; the

organization system should be developed and implemented to achieve a strategic

objective. A continuous assessment & correction (if there is any deviation from

planning) of each department/task of should be done.

Departmentalization: Separate departments should be established for advertising,

HRM and R& D. Employees hiring, training, appraisal and development should be all

systemized and on merit/professional ability basis.

Authority & Responsibility: Right authority should be assigned and delegated to all

levels of management and each individual is responsible and accountable for their

duties/tasks. Inter/Intra departmental coordination & communication should be

improved.
 Benchmarking: Organizational processes, strategies & policies should be revised

and a world class benchmarking is required to grow fast.

Total Quality Management: Total quality management system should be developed

and implemented for producing, maintaining and improving uniform quality products.

Management should concentrate on improving ghee/cooking oil quality, packing

quality, marketing quality and services quality more.

Replacement of Substandard Products: Management should stop delivering

substandard consignment in the market. In other case, substandard products should be

replaced immediately those are found in the market.

Product Pricing: The prices of company products should be based on the cost,

demand and competitors prices base criteria.

Middleman/Distributor Selection: A standard criteria to appoint channel

members/distributors should be as follows:

Market reputation of the prospecting party/distributor

Financial position or bank statement of the party.

Business volume and past ghee business experience

Available resources (vehicles, storeroom, sales man, display center etc.)

of the party.
 Past business record with other ghee/oil mills.

Distributor Credit Limit: The Company should approve a suitable credit limit for

the appointed distributors on the basis of partys sales volume, payment performance,

partys requirement & their reputation and territory requirement.

Promotional Program and Budget: The Company should revise their promotional

program; and develop promotional budget with specific objectives, determining the

tasks needed to achieve these objectives, estimating the costs of performing these

tasks. The sum of these costs is the proposed promotional budget. The company

should set its promotion budget based on what its wants to accomplish with

promotion. Moreover, A blend of integrated marketing communications & a blend of

push & pull strategies should be used to compete with prime competitors.

Availability of Products: The Company should ensure easy availability of products

on each retail store even till corner shops to facilitate convenience buying.

Khalid Modern may become a challenger to national level A-category brands

(e.g. Habib Banaspati/Cooking Oil, Dalda Banaspati/Cooking Oil, Kisan Banapati/

Cooking Oil and others) in case of pursuing above-mentioned recommendations

successfully. So this is the way to move forward to become a reputed national firm.
REFERENCES & SOURCES

1. See Fundamentals of marketing by William J. Stanton, Tenth edition,

pp. 360-380,453-470

2. Annual Reports of Khalid Modern Industries (Pvt) Ltd. Hasilpur, 1994 & 1995.

3. See Principles of Marketing by Philip Kotler, Eighth edition, pp. 274-290, 303-320,

pp. 334-340 and 450-470.

4. Proposals for unit sales policy by Iqbal H. Bokhari, Ex. Marketing Manager, Khalid

Modern Industries (Pvt) Ltd. Hasilpur.

5. Marketing records of Khalid Modern Industries (Pvt) Ltd., 1995 & previous.

6. Annual Reports of Khalid Modern Industries (Pvt) Ltd. Hasilpur, 2009 & 2010.

7. Proposals for unit sales policy by Iqbal H. Bokhari, Ex. Marketing Manager, Khalid

Modern Industries (Pvt) Ltd. Hasilpur.

8. Marketing records of Khalid Modern Industries (Pvt) Ltd., 2010 & previous.