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Chaudhry Dairies limited was incorporated in 1984 as a Public limited Company. The
head office is situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km
Lahore-Multan Road, Bhai Pharu. Commercial production started in 1986 & the
company reached its breakeven in the year 1992. In the 1993 milk powder was
introduced in the market in the bulk form.

Haleeb Foods is well known for it ³first mover´ initiatives in product & packaging
innovations. The company believes in using leading edge processing & packaging
technologies to meet consumer¶s expectation of hygienic & high quality food products.
Haleeb Foods employs the broadest range of packaging formats; Tetra Brick, Fino,
Classic & Foods grade plastic bottles for the convenience of consumer. The company has
 one of the largest nationwide distribution networks with the help of 1100 distributors/
dealers delivering high quality products even in remote areas of Pakistan. Moreover, it
has tapped opportunities in export markets including Korea, Hong Kong, Bangladesh,
Afghanistan & the central Asian states.

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Haleeb Foods Limited is one of the fastest growing packaged food companies in Pakistan
with an annual turn over rate of 7.2 Billion. It was incorporated on 9th April 1984, while
it¶s started its commercial production in July 1987. Within a short span of just 2 decades,
the company is operating in 5 businesses segments; UHT milk, Cream, Juices, Powdered
milk & Butter oil. Haleeb Foods has achieved undisputed leadership in the liquid
packaged milk category with a market share of more then 56%. The company has a very
strong portfolio consisting of leading National / International Brands; Haleeb, Candia,
Dairy Queen, N¶rish, Skimz & Tropico.

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o| Plant Distance from Lahore 62 KM

o| Company Established 1984
o| Plant Installation 1985
o| Plant Trials May, 1986
o| Commercial Production May 21, 1986
o| Affiliation with CCF-Holland 1989-91
o| Power Plant Installation 1992
o| Breakeven Point Achieved 1994
o| TQM System Established 1994
o| Achieved #1 Position in UHT milk 1996
 o| ISO-9002 Certification 1997
o| ISO-9001: 2000 Certification March 2003
o| HACCP June 2003
o| ISO-14001 (Certification Recommendation) August 2004
o| Bottling Plant Installation 1998-99
o| Total Land 81,000 Sqr.Mtr.
o| Plant Covered Area 12,000 Sqr.Mtr.
o| Colony Covered Area 19,600 Sqr.Mtr.
o| Admin Block Covered Area 600 Sqr.Mtr

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"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"


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o| Accountability
o| Team Work
o| Enterprise
o| Empowerment
o| Trust

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" Most innovative & fastest growing food company

offering products enjoyed in ³every home every day".



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o| Providing nutritious and hygienically processed food products to our customers at

competitive prices.
o| Enhancing our reputation for quality in all our operations.
o| Promoting mutual trust with customers, suppliers, employees and shareholders.
o| Providing a safe and healthy environment to our community.


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Haleeb Foods Limited is producing the quality products as per the standards of ISO &
HACCP. Along with the quality products, Haleeb is also producing the wide range of the
products including milk based products, juices, powder etc.

The products can be divided into following ways:

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Products, which are branded and are sold to the end consumer through a distribution
chain in the packaged from as produced by the company. Consumer products are sold
under following brand names:

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i.Haleeb UHT Milk
ii.Haleeb UHT Cream
iii.Haleeb Yogurt
iv.Dairy Queen
v.Haleeb Gold
vi.Haleeb Good Day Pure Juices (Mango, Orange, Apple, Mix, Pineapple, Red
grape)
vii.N¶rish (Instant Full Cream Powder Milk)
viii.Asli Desi Ghee
ix.Haleeb Fun Day Juice Drinks
x.Haleeb Laban (Saltish & sweetened)
xi.Haleeb Tea Mix (Plain & Cardamom)

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i.Candia Candy Up Flavored Milk (Brick)

ii.Candia Bottles
iii.Candia Liquid Skimz
iv.Candia UHT Milk (Brick)

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i.Tropico Fruit Drink (Mango, Apple, Mix)

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Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it
is also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced
in 1996. Both products are sold in 25 kg bags.

Excess milk fat is sold unprocessed to makers of butter, ice cream and sweeteners, or at
request is turned into ghee.


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CDL started exporting its products in 1999 and has done business with customers in
Korea, Afghanistan and china, United Kingdom.


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›| To be an innovative marketing and research oriented company.

›| To develop product with market potential through means of indigenous
technology and research and development.
 ›| To target new emerging segments of milk market.
›| To deliver consistent quality to our customers using pure ingredients and
best available technology.
›| Dedicate to continuous improvement through active alliance with other
companies in technology and packaging department.
›| To deliver a fair return to our valued investors and shareholders annually
in line with industry norms and economic conditions.


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The strategic plan defines the company¶s overall mission and objectives. Consumers
stand in centre. The goal is to create value for customers and build profitable customer
relationships. Marketing strategy means the marketing logic by which the company hopes
to create value for their customers and achieve profitable customer relationships. The
company decides which customers it will serve which includes segmentation and
targeting and how will it serve which includes differentiation and positioning. It identifies
the total market, then divides it into smaller segments, selects the most profitable segment
and focuses on serving and satisfying the customers in these segments. To find the best
marketing strategy, the company engages in marketing analysis, planning,
implementation and control. Through these activities, the company watches and adapts to
the actors and forces in the marketing environment.

The market consists of many types of customers, products, needs and wants. The
marketer has to determine which segment offers the best opportunities. Consumers can be
grouped and served in many ways based on geographic, demographic, psychographic and
behavioral factors. The process of dividing a market into distinct groups of buyers who
have different needs, characteristics or behaviors and who might require separate
products or marketing programs. Haleeb is currently serving its product to mass market
that means that they have not segmented their market. They are serving their product to
everyone. Milk is a product which generally does not need to be segmented because it is
required in every household. So Haleeb is focusing on a big market which is not
segmented so they can achieve higher profits. It¶s not only Haleeb which is targeting
mass marketing but other competitor like Milk Pak and Olpers are also focusing on mass
marketing.

In case of Haleeb, their marketing strategy is to create market positioning which

means arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target customers. They have positioned their product
in minds of customers as a quality product; their milk comes straight from the farms.
They have positioned their product as hygienic. They claim that their milk is pure from
germs and is thick than other competing brands. They believe that their product has
natural enrichments. The company is targeting females and people of mature age for
Haleeb milk as they are mainly interested in the purchase of Haleeb milk but in case of
Candia they are targeting children as they are providing freedom to them to make choices
of their own.


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Guided by marketing strategy, the company designs integrated marketing mix made up of
factors under its control; product, price, place and promotion. Marketing mix is the set of
controllable tactical marketing tools such as product, price, place and promotion that the
firm blends to produce the response it wants in the target market. The marketing mix
consists of everything the firm can do to influence the demand for its product.

Marketing mix include four Ps;

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Product means the goods and services combination the

company offers to its target market. Currently Haleeb
is available in three sizes i.e. quarter, half and liter
packs. The packaging is not so much attractive but it is
easy to handle by the consumers. The packaging list all
the ingredients used in the product which are in line
with the legal requirements. Haleeb contain all the
necessary vitamins and proteins required by a human
body. It gives the body the strength it requires. The
taste of the milk is so delicious that you won¶t drink it
as milk but as a refreshing drink. In order to increase
its sales Haleeb has to change its packaging. It should
design a new colorful packaging so consumers can be
attracted to its packaging. It is a common trend in
manufacturing businesses to change the packaging of
the product which gives it a new feel and it do affect
the sales and the profitability of the company.
 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 fa ts. 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.

A system in which HFL purchases and preserves raw milk that meets its quality standards
through their staff members are known as self-collection. It may include the following:
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Village Milk Collection Centre (VMCC) is a place where the farmers of an area come
and give milk and a person appointed by the company collects milk after testing it. At
VMCC the agent keeps the record of all the farmers who supply milk at VMCC and takes
samples from the milk. The samples are tested and receipt is given to the farmer and a
copy is kept at the VMCC for record.

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The collection vehicle, when goes to an area for the milk collection, there are some
farmers who don¶t supply milk at the VMCC. They are aware of the timings of the
collection vehicle, so they supply milk directly to the people in the vehicle.

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Progressive farmers are those farmers those who deliver the milk in a large quantities and
supple directly to the collection vehicle
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A products price is the major determinant of the market demand for it. Price effects the
firm competitive position by net profits because it is the price that brings money into the
organization. Many companies in this century are doing what is called >alue Pricing.
Value pricing is the price competition which aims to enhance the products quality. Value
pricing can be achieved by placing a product with distinctive features priced above the
market rate. Value pricing depends on the combination of all the elements of marketing
mix in order to maximize benefits in relation to cost and price. On the other hand many
firms are also focusing on low prices for its products because now days the competition
has increased and grown. Globalization is also encouraging firms to decrease their prices
in order to survive and make profits.

Pricing Strategy
There are actually two main types of pricing strategies.

1.| Market Skimming Pricing Strategy

2.| Market Penetration Pricing Strategy

Selecting a high initial price for a new product is referred to as market skimming pricing.
Whereas, selecting a relatively low price for a new product is termed as market
penetration pricing strategy.

Haleeb is using market penetration pricing strategy for their product since it is not
performing well now days. It is seeing the worst phase of its life cycle. So in order to
survive this phase Haleeb is focusing on penetration pricing. There is not a lot of
difference in the prices of its competitors because Haleeb has to cover all of its expenses.

In order to survive this period of product life cycle Haleeb can carry number of steps so
its product can get back where it was previously. Haleeb can introduce Quantity
Discount.
It is actually the deduction from sellers list price intended to encourage the customers to
buy in larger amounts. This discount is based on the size of purchase either in rupees or
in units.

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The objectives of Haleeb foods for pricing Haleeb milk are as follows:

1.| To achieve a target return.

2.| To maximize profit.
3.| Stabilize prices to meet competition.
4.| Market share Leadership
5.| Product Quality Leadership




Promotion means activities that communicate the merits of the product and persuade
target customers to buy it. Currently Haleeb is doing promotion equal to zero. They are
not giving any advertisements. They are not doing other type of promotional activities
like displaying their product in an attractive manner in big stores. While its competitors
Milk Pak and Olpers are doing all kinds of promotional activities. Haleeb should
concentrate more on promotion in order to increase its sales. They should do
advertisements on electronic media like televisions. They can also give discount to their
customers.

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T.V commercial is the main medium that is most actively being utilized by Milk Pack
and Haleeb Milk. The second medium that helps both of them is through Tetra Pak
advertising that is highlighting the effects on doodh that is provided by the normal means.|

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 Posters and billboards are also affectively used for the promotion purposes but they are
not focusing on it as heavily as they are focusing on advertising. Billboards are purchased
for some time period but after the promotion is known to everyone the billboard were not
used anymore.

Posters are pasted at the small shops to enforce the impulse buying and Haleeb gives a lot
of weight-age to the shelf space that they get. But this strategy is used in big shopping
malls only because nestle enforce the retailers through other products so that Haleeb can¶t
enforce small retailers.

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Place include activities that make the product available to target customers. Channel of
distribution which Haleeb is following is

Producer Distributors Retailers Consumers

This diagram shows that Haleeb is passing through producers to their distributors that
will distribute Haleeb to different retailers and markets then the consumers will buy
Haleeb from retailers. Haleeb is currently available in the market but it is not available in
every store or shop. Haleeb cannot be easily found. The distribution is not good; it is a
problem with their distribution. The product is not distributed everywhere. Haleeb has to
improve its distribution channel so the consumers can buy it from everywhere.
 BCG Matrix

Star is a product which has high market share and high market growth. Cow is a product
which has low market growth but high market share. Haleeb food has no star and cash
cow in their product range. Question mark is a product which has high market growth and
low market share. Haleeb milk is question mark. They need to divest this product. Dog is
a product which has low market share and low market growth. Haleeb yogurt is a dog
because market for packed yogurt has low growth and Nestle¶s yogurt is selling in the
market.


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Many organizations perform SWOT assessment in this activity a firm identifies and
evaluates its most significant Strengths, Weakness, Opportunities and Threats. To fulfill
 its mission an organization needs to capitalize on its key strengths overcome weakness
avoid threats and take advantages of the opportunities.

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›| It includes Natural Enrichments which are healthy for human body.|
›| It is Hygienic which is good for human health.|
›| It is the thickest milk in the market which is also its unique selling point.|
›| It has good tetra pack packaging which sustains quality.
›| Quality improvement
›| Pioneer of flavoured milk

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m| The Distribution Channel of Haleeb is not good. Its product is not
distributed everywhere.
m| They are doing Less Promotions which is helping Haleeb to fall down.
m| Communication gap.
m| Weak distribution networks as compared to their
competitors.
m| Slow promotional activities, as compared to their
competitors.


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›| The company can distribute Haleeb everywhere and in new markets like rural
areas so it can increase its market share.|
›| Getting international contracts with England, Middle East,
and Holland, Afghanistan.
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›| There are large number of competitors present in the market like Milk Pak,
Olpers, Nurpur, Good Milk and some imported brands.|
›| A large number of consumers are brand loyal to Milk Pak and Olpers so it is hard
to break brand loyalty.|
›| There is a fierce competition because the advertisement campaigns of different
competitors are very good.

›| New entrants.
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There are number of problems present for Haleeb. The most important problem for them is
that their market share is decreasing fast. So ultimately their profits are also affected. The
reason why Haleeb¶s market share has decreased is because new competitors have entered
into the market like Olpers, Nurpur and Good Milk. They have done extensive promotional
activities and attracted consumers to buy their product. Haleeb¶s distribution channels are
also not good and their product is not delivered at every store and shop. They are not doing
any promotional activity which is also affecting their sales. They are not able to design
effective marketing strategies which have also played a role in the downfall of Haleeb in the
market. The competition has grown bigger and tougher so it is very tough and difficult for
Haleeb to survive in this cut throat competition. It needs to make new and effective market
strategy in order to gain its market share back.

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