Powdered milk, currently imported mostly from Eastern Europe, and Centrally Independent States (CIS), comes in two forms:
(a) Skimmed milk powder;
(b) Vegetable fats-filled milk powder
Imports of skimmed milk powder range between 5 to 10 percent of the total imports of milk powder. In order to encourage development, the GOP recently announced the establishment of a National Dairy and Livestock Development Board, which has been mandated to develop the dairy, poultry and meat industries.
There are no dairy exports from Pakistan, except a small quantity of infant formula milk exported to Bangladesh, Sri Lanka and the CIS by Lahore-based joint venture between a Pakistani and a European company.
Changing habits and the increasing awareness of the health value of hygienically prepared foods at least amongst the urban population can be expected to raise demand over the next few years.
Processed foods are imported into Pakistan merely to feed a few supermarkets, which cater to the country's elite. As imports are made by container load, importers visit the nearby duty-free market of Dubai to make purchases of various imported goods to collectively fill a container.
A larger order moves the importer to England, or, if volume warrants, to the country of the manufacturer for which the purchaser has a bulk order. There is no regular country of origin or consumer preference for the processed foods purchased. Both consumers and buyers identify with brand names, but the major discriminating factor is price.
It is thus cheaper to buy goods originating in England or Thailand than foods processed in the United States, and it is seldom that two successive containers will be packed with goods originating from the same processor.
STEPS TAKEN IN DAIRY INDUSTRY
In such a situation, the only way to control prices is to develop the dairy industry
on scientific lines, which will not only provide meat and milk in abundant
quantities to the domestic consumers but extra quantities can also be exported.
In spite of having a large population of LIVESTOCK, the country is spending
some $40 million annually on the import of formula milk only, which is the highest
amount spent by any country in the world on this particular commodity.
Category: Dairy product:
- Butter
- Cheese
- Ice-cream
- Milk
- Yoghurt
PEST Analysis
Political:
- Now a day Pakistan becoming a most import Muslim state, where every anti Muslim’s lobby focusing on it’s every action, Islam gives rule of conduct on every aspect of life also in food items. It introduced two concepts HALAL & HARAM but unfortunately Pakistan being a Muslim state there is a lack of regulatory authority to impose and implement rules and regulation.
- As far as dairy concerned there is not such trade agreement or boundaries to set by the government.(quota)
- ISO Certification could make a more important rule to create the trust of customer.
Economical
- Industries as a whole have been suffering from global economic changes that have been taking place in the recent years. Increase in oil prices, shortage of electricity, continuous downfall in the power of purchase has not only adversely affected the consumer market but has equally made life of corporations to maintain a competitive place in the market difficult. Electricity shortage crises add fuel to the fire by making operation costs extremely difficult to maintain within an acceptable level.
- By the increasing tendency of using artificial food in society the living age are tend to reduced, health issues like heart problem, Diabetes, cloistral, blood pressure etc are increasing day by day and become very common. So due to that people are more conscious to use health protect food
Social:
-
UHT milk brings the changes in living life of our country, as the literacy rate is improving and it is resulting in batter awareness of UHT milk and other dairy hygienic product.
- For the last decade, many changes were occurring in term of technology, politics, international politics and the most important change is behavior and awareness. People of Pakistan are more aware regarding Islamic issues than past due to the attack on core believes of Islam by the west.
- For the last decade, many changes were occurring in term of technology, politics, international politics and the most important change is behavior and awareness. People of Pakistan are more aware regarding Islamic issues than past due to the attack on core believes of Islam by the west.
Technology:
- As far as dairy industry concerned technological factor is playing an important role to differentiate with the local and traditional way of manufacturing, because you are here through differentiation in dairy product. Type of the technology available within the industry states the competitive environment because creative use of new technology is what often gives firm there competitive advantage.
Porters:
Threat of New Entrant
As the investment, huge infrastructure and heavy distribution channels are playing a significant role for a company to enter into the industry so all the given conditions are restricting a company to enter with such a huge investment huge infrastructure.
New investors will think once before entering in this industry because there is already a cut throat competition among the existing companies and this market is already saturated but only a big investor can survive or gain a reasonable market share those who have capabilities to disturb existing rivals.
Suppliers Power:
Suppliers of milk might not be a big threat because of the reason;
- Number of suppliers
- Importance of volume to suppliers
Raw milk is easily available in open market from a large no. of milkmen. If anyone refuse to sell its product then company buy it from others who are already willing to sell to company.
Buyers Power
There are large numbers of distributers, who are buying and distributing the product, so their bargaining power is low.
Substitute
There are plenty of substitutes in the dairy industry. Most large companies are offering similar services. So threat of substitute is high.
Rivalry
The dairy industry is becoming highly competitive. The difference between one dairy company and another is usually not that great. So there are many competitors. The top big companies are already working in this industry are follows:
Nestle
Olper
Haleeb
Traditional milk collecting agents in Pakistan sell milk in perfectly competitive urban markets. They function just like the middlemen, who are often not the producers of milk products themselves; they simply transport and sell fresh milk to a variety of urban consumers, sweet shops, confectionaries, wholesalers or retail shops in an otherwise perfectly competitive urban market for fresh milk. For the processing industry, however, commodity markets are essentially oligopolistic since only a few players control most of the processed milk market.
Competitor Analysis
There is as such not any company which is producing garlic butter in the Pakistan’s market. Many large companies are operating in Pakistan which can be one of the biggest threat of Haleeb foods.Nestle, Engro foods, Nurpur and Blue Band could be the competitor of Haleeb in future because they are having a lot funds and budget available with them and this could be one of the major competitive threat for Haleeb food because their resources are very limited. Moreover a leading bread producer in Pakistan, Dawn Bread could be a competitor not because they are producing same product but they are producing bread which is almost delivering same features like for example Bran Bread which is freshly baked for health conscious customers.
Identify 3 Opportunities:
One of the biggest opportunities of our product is that this product is not involved in any direct competition. There is not any product in this market which is offering same features and benefits of low cholesterol and low fats in their butter.
Another opportunity lies in the medical segment of the market. As garlic butter can prove to be a very good diet for heart patients and also other diseases. So different doctors can help us develop our market if we somehow able to convince them that they can advice our product to their patients. That’s why medical market has a big opportunity in store for us.
The gyms, training centers, fitness centers, etc can also provide us opportunities to develop our market. As it is low cholesterol, low fat butter, it could prove to be a perfect diet for the people going to gyms and fitness centers. So placing our product there ccan prove to be fruitful for the company as trainers and coaches can advice our product to trainees for better health and fitness.
The butter market has been on a constant decline from the past few years. So this situation can be dangerous for launching a new product but at the same time can prove to be a big opportunity for us to revers back the situation and enjoy good profits. As our product is entirely different and it is a new concept in the market it can help butter market to get revived, which will automatically prove to be a profitable situation for the company.
Recommended Opportunity:
The opportunity which would be recommended from the above mentioned will be of medical segment because the doctors are the one who are most health conscious. So, special focus should be given to the medical segment because if doctors recommend this brand to their patients it would be a perfect setting for the company. Also it would help the company to increase the switching cost if the doctors recommend our brand.
Segmentation:
In this portion of project we will discuss that how many segments Haleeb is serving for its product and what strategy they are using for these segments.
Demographic Segmentation:
Age: people age group of 25 to 40
Sex: Both Male & Female
Occupation: Mostly professionals and executive people, families etc.
Income: Rs. 25000/- and above
Religion: every religion
Geographic Segmentation:
Consumption of garlic butter will be related with the geographic as well as economic conditions of a place. It will be demanded in every big city like Lahore, Karachi, Islamabad etc because the life of these cities is very fast and people are more health conscious and aware than people of rural areas and small cities.
Psychographics Segmentation:
The social class, which is included in the target group of Garlic butter is consumer from upper, lower upper class and middle class. They will buy this product because of their social set up and price of the product. The consumer has large range of personalities from dynamic to interesting. From self confident to extra vested, from risk-taking to social able. The personality of a person makes a lot of difference in buying power. The lifestyle of consumer varies from flashy, broadminded modern to dull traditional and backward. It is a very important factor which very much influences the buying pattern of the consumer. People will be mostly influenced by high quality, healthful richness and branding of product.
Behavioral Segmentation:
The customer expects high quality in a new product to shift from existing one. Garlic Butter is 100 %e pure and made with all natural ingredients, which will create loyalty and consumers normally don’t shift from product. Garlic butter is available in different sizes plastic box of 20mg, 50mg, 100mg, 200mg and 500mg and suitable for consumers that they can use it any time at home or in office.
Targeting:
It this report, we are using differentiated strategy by keeping in view that it is a unique product and it is not only targeting the single segment of the society but also targeting females , diet conscious people , office employees etc as well. This strategy is most suitable to this product because it target different segment and firm is having a big competitive edge of delivering innovative product.
More over, females are more conscious about their health & fitness and also for their kids and whole family.
Doctors will prescribe this product to the heart patients and people having blood pressure.
Positioning:
Natural & Pure <<<>>> As Pure As Nature
It is very important that how can marketers position their products, their distribution channels, their technologies, even their company’s corporate identity? Positioning is the process of achieving a desired place in the mind of target market.
Garlic butter positioning approach is by product attributes, benefits, usage occasions, away from competitors, and product classes
Product Attributes:
The characteristics of Garlic butter are as follow:
- Hallal
- 100 % Pure
- Herbal Natural Ingredients used to prepare it
- No side effects on health
- It is full of nutritious contents.
- The females which are very much keen in giving their families with healthy and hygienic products for the surety of health of her love ones.
- Be bright and strong with healthy and tasty butter.
- Contains low fats and cholesterol free.
Marketing mix
Product:
Garlic butter is available in single flavor but the Haleeb food industry has broad range of Product line. All the products are made from 100 % natural ingredients with no artificial flavors. Products of Haleeb are safe and have no side effects on health.
Brand name:
Brand name is “Garlic butter”.
Quality and features:
Demanding businesses require quality, efficient and cost effective to protect and taking excellent environment. So Haleeb food Industry is responsible to maintain a standard by ISO 9001 (UK). Garlic butter is made by natural things. There are some important features in our product, which compete in the market place against existing company. Moreover it is available in different sizes and packaging for the convenience of customers. It is 100% pure without any chemicals or artificial flavors. It could be used with bread to reduce hunger in time of lunch and breakfast.
Placement:
Our product will be available almost every big retail store, general store, bakeries, pharmacies and super stores of the city. There it will be given a proper shelf space where customer can find it easily.
Promotion:
As company has limited resources and it is not possible for Haleeb to promote its new product aggressively with the help of media or advertisement campaign on billboards and television. For this purpose, company is using push strategy in which they are giving different incentives and benefits to the retailers and distributors for giving their product a proper and prominent shelf space and for encouraging their net sales.
Price
Pricing strategy would be cost plus in the initial stages of the product which depending on the circumstances would be changed to penetration. The price of the simple butter of 100gm pack in the market is around 30-35 so the price in the initial stages will hover around in the range of 45-50.
References:
- www.pide.org.pk/psde23/pdf/Abid%20A.%20Burki.pdf
- www.repocube.com/Stuff/Reports/reports11/Candia%20final.doc
