Professional Documents
Culture Documents
REPORT:
SUBMITTED TO:
SIR TARIQ RAHIM
SUBMITTED BY:
Muhammad Mohsin (20385)
Ali Ahmed (38773)
Adil Jawed (38797)
Kabeer Alam (21207)
PREFACE
First of all I would like to thank our instructor Mr. Tariq Rahim for providing me the opportunity
to look into various marketing strategies of Habib Oil Mills Pvt (Ltd). This project has given me
a complete knowledge and practical experience, which will help me in future. I am also thankful
to Mr.Talha, assistant Brand manager of HOM
for sharing his experience and knowledge regarding the marketing strategies of HOM. His help
has enabled me to prepare this report.
I hope that this report will provide you the required informationregarding the marketing
strategies of HOM.
COMPANY PROFILE
Habib Oil Mills (Pvt.) Ltd. "HOM" is the largest FMCG Company exclusively in the vegetable
oil& fats sector in Pakistan. The company produces premium brand cooking oils and
hydrogenated cooking mediums, and markets the products through its own distribution network,
which covers almost all commercially viable markets nationwide.
Incorporated in 1954-55, Habib Oil Mills (Pvt.) Limited was initially established as an oil
expelling unit. The present management took over the unit in 1978.The company has strong
financial background and has sizable infrastructure managed by professional staff. It enjoys
excellent relations with its bankers and is considered liquid on all financial considerations
throughout its performance. It has proven track record in this business and has plans for targeted
prosperous growth in future.
The marketing policy of the company envisages development of brand loyalties among the
customers and consumers through their continued involvement and participation in series of
several promotional activities run by professional staff and consultants. The products enjoy vast
popularity and brand loyalty and stand first in terms of market share in this sector nationwide.
The company has achieved a growth of over 500% in last ten-year period, which is primarily
attributed to its consistent quality care and driving successes from application of needed market
strategies.
Mission
Corporate Mission Statements" Our aim is to become the trend setters in promoting healthy
living through providing quality food products." Values Customers HOM is customer driven.
We strive to provide products and services of superior value to meet the expectations of our
internal and external customers. Innovation HOM constantly strives to be creative and innovative
in all its endeavors. All HOM employees are encouraged to bring forth new and better ideas for
improved performance, whatever our responsibilities. Ethics HOM demands openness and
honesty throughout its operations to engender trust, and integrity underscores everything we do.
We believe that every activity must be able to pass the test of public and internal scrutiny at all
times. People HOM employees are all partners, working together in the pursuit of the mission
and strategy. We strongly value teamwork, and we want every employee to be motivated to
succeed. Performance HOM is performance driven. We continuously aim to improve in all that
we do.
PRODUCT LINE
1- HABIB OIL,BANASPATI
2- HABIB KETCHUP
3- HABIB MASAL
4-HABIB DRINKING WATE
HABIB KETCHUP
Its introduced approximate before 7 years (in2009)in ketch industry of Pakistan they
targeted to the direct consumer and cooperate sector like restaurant .they introduced their s
product with the ATL and BTL marketing activity
Population estimates 166.5 million (2009)
Approximate 35-40% population was of urban areas (60.ml) Which was the target market of
ketchup industry
COMPETITORS
This is approximated data
National market share 45%
Shangrila market share 34%
Knorr market share 6%
18% others
Whereas Habib ketchup holds only 02% of the market share.
SUPPLY CHAIN
They import Raw material from china and process it in Pakistan and other packaging material
also they outsource locally.
Habib ketchup has distributers in various cities by these distributer they make availability of
theirs product to the end customer
They have logistics vehicles on contract basis by which they make availability of theirs product
to the distributer.
MARKETING PLANE
1- Strength.
.Habib ketchup has a tangy taste, darker color and high viscosity (thickness) and price lower than
the close competitors.
2- Weakness
It was launched very late time in Pakistan when other brands already penetrated in the market.
Lower focus on ketchup because they have edible oil which is Habib oil as a main product of
the company.
3- Opportunities
They have large market to extend the business.
International market.
4-Threats
Competitors have good market share and can be a big threat for the habib ketchup.
SUGGESTION
OBJECTIVES
1) To be positioned in ketchup,
2) Consistent quality and pure ingredients,
3) Attain intrest and satisfection of the consumers
4) Brand awareness
These all above objective will help to get the following objectives
1-To increase the sales turnover and profitability
2-increase market share of Habib ketchup.
3-MarketeExpansion by the availability of Habib ketchup at retail store, especially large
departmental store in allover the urban areas of Pakistan.
4- Produce the Quality and taste related to the most accepted by Pakistani market which able to
satisfy the customers.
STRATEGY
Market segmentation/Target
1-Habib ketchup is targeting to Pakistani urban areas (Karachi, Lahore, and Islamabad) where
people love to fast food
The population of urban areas was approximate 60-65 million
Direct consumer and cooperate like restaurant etc,
Positioning
1- Quality product at economic price
2- Mid price (price per kg Rs.155)
3- Targeting to direct consumer and corporate like restaurant
4- We have plan to diversify in product line and market expansion
Action plan
Basically action plan is very important to launch the new product or boost up the sale of
existing product and we have both objective of descriptive action plan.
1- We are going to offer the right product, at right price, at right time and at the
right place.
The four main concept of our action plan which expressed in one sentence is briefly
described below.
PRODUCTS
1-Habib tomato ketchup
2-chilli garlic
3-new launch Mango ketchup
Habib ketchup
Its introduced approximate before 7 years (in2009)in ketch industry of Pakistan they targeted
to the direct consumer and cooperate sector like restaurant. The Product based on the American
food cultured as it has been developed in the urban areas of Pakistan.
EXPANSION IN PRODUCT LINE
We are going to launch a mango (flavor) ketchup due to highly acceptance of this flavor in
various products and also have been launched by competitors but the Habib still could not
launched the variety of flavor in the market which might be the reason of Failure .
In the starting we will produce only 20 tons mango ketchup to test the market in approximate the
duration of three month including Ramzan .
After testing the market if it will be successful then we have plan to produced it according to the
estimated demand of this product which will get from the test market but currently we have plan
to produces approximate 80 ton for the 1styear then will increase 20% every year .
They import raw material from china and packaging outsource locally for theirs production of
ketchup
PROMOTION
We have verity of promotional plan to boost up the sale of habib ketchup .
Ramadan offer
1- We are market leader in cooking oil industry approximate 42% market share of habib oil
We have opportunity to captchured this huge quantity of consumer with the promotion on
Habib oil to giving one free ketchup pack (250 g) on the 5 liter pack of oil in Ramzan
offer it will start from 25thshawal to 29 Ramzan.
This offer will boost up the sale of cooking oil and as well the huge consumers will aware
of the Taste and quality of the habib ketchup which effect on the coming sale of Habib
ketchup
2- We have plan of advertisement by TV channel especially with the Ramzan transmission,
cooking channel etc .there will add of approximate 30-40 second in which we will offer
one pack of Habib Ketchup (250g) with 5 liter pack of Habib oil.
Basically we have low marketing budget of Habib Ketchup there for we are going to
conduct the indirect marketing of Ketchup with the advertisement of Habib oil.
By this way we can make awareness of Habib ketchup in the market.
3- We have plan to offer 10% Ramzan discount on Habib ketchup, it also will have the same
duration which described above.
TVC
Habib ketchup has defined well in the TVC which is a smarter way to market the ketchup, we
further plan to bring innovation in the ad in future.
There will be some saving ads which offers like Habib ketchup with masala and saving (bachat
pack) with discount of Rs. 10 on 1 kg packing.
Print Ad,
We have planned to viral this ad through print media, digital media where consumer has been
shown the curse of food and how food can be made fun through Habib Ketchup
ROLLING BILLBOARDS
BILLBOARD
Push Strategy
2- We also have plan to work out on push strategy in which we will offer the credit facility to
the large departmental store like imtiaz,Naheed ,metro,hyperstar and other large retail store
that they should keep the product on their shelves.
1- The weakness in availability of habib ketchup on the retail and large departmental
store is noticed during the research on this product, therefore we have plan to adopt
the push strategy.
PRICE
Price sometimes refers to the quantity of payment requested by a seller of goods or services.
We have planned to set the mid level economical price affordable for the everyone.
Habib Ketchup
Volume(Kg) Price
10 g 3
100 g 20
250 g 40
500 g 80
1 kg 155
FORECASTING
The forecasting and estimation for yours marketing plan is very important to check yours action
of marketing plan that where you can stand after conducting the whole process of marketing .
1- In this process we will check the previous record of sales, expenses and profit of the
company then will forecast for future.
(less) EXPENSES
Raw material(95000*45) 4275000
Packaging (5*95000) 475000
CGS -4750000
Gross profit 9975000
distribution expense (50000*12) 600000
storage expense (15000*12) 180000
wages management 369600
wages labour (15*15000) 2700000
marketing expense 3800000
Utility 500000
DEP. EXPENSE(10m/20years) 750000
FOH 50000
Total expenses -8949600
Total profit 1025400
%age of profit 6.96
2% for each
salary
marketing manager 125000 2500
assistant 50000 1000
4 0fficer 80000 1600
sales & supply chain manager 100000 2000
officers 10 (sales depart) 250000 5000
ACCOUNT MANAGER 150000 3000
assistant 75000 1500
officers 15 300000 6000
HR MANAGER 100000 2000
assistant 50000 1000
officers 3 75000 1500
procurement manager 125000 2500
officer 3 60000 1200
management exp.for one month 30800
labor for ketchup (15*15000) 2700000
Total Management for one year 369600
Total wages 3069600
Sales forecasting for next 5 years after conducting the marketing activity which described
above.
Summery of farcasted sale for nex 5 years
Fixed %age
Peroid sale variable exp exp total expense Profit profit
Break data of Habib ketchup for profit and loss account for the year 2017
CONCLUSION
After conducting the study on habib ketchup we conclude that Habib ketchup is one of
Qualitative product but unfortunately its became failed due to less concentration of management,
poor marketing strategy ,lack of innovation ,poor distribution channel and lack of awareness of
customers about Habib ketchup .
We prepared a suitable marketing plan in which we highlight the problems and gave suggestion
to overcome the issues which will boost up the sale of product and as well increase the market
share.
Thank you.