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  • Topic: Milk, Dairy product, Dairy farming
  • Pages : 26 (8574 words )
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  • Published : May 25, 2013
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BUSINESS POLICY REPORT
INDUSTRY: MILK INDUSTRY
FIRMS: HALEEB & MILKPAK

Submitted to:
Ms Andaleeb Abbass
Submitted By:
Ayesha Karim
Ayesha Arif
Anum Masood
Saira Bano
Hammad Sohail
Ali Zahid
Ali Zaheer
Section: C

Table of Contents
INTRODUCTION2
The Industry2
Nestle: MilkPak Introduction5
Product5
Pricing6
Placement6
Promotion6
Haleeb Foods: Introduction7
Product8
Pricing8
Placement9
Promotion9
MISSION STATEMENTS10
Current & Proposed of Milkpak10
Current & Proposed of Haleeb11
COMPETITIVE ENVIORNMENT12
Porter’s Five Forces Model of Industry Competition12
The Threat of New Entrants12
Bargaining Power of Buyers14
Bargaining Power of Suppliers14
Threat of Substitute Products & Services15
Threat of Existing Rivalry16
PEST ANALYSIS17
EXTERNAL AUDIT19
EXTERNAL FACTOR EVALUATION MATRIX……………. 19 INTERNAL AUDIT22
INTERNAL FACTOR EVALUATION MATRIX of Haleeb 22 INTERNAL FACTOR EVALUATION MATRIX of Nestle Milkpak ……………………………………………….27 COMPETITIVE PROFILE MATRIX ………………………………………………………………………………………. 28

INTRODUCTION
The industry which we have choosen is the Milk Industry. The firms selected are Haleeb foods and Nestle Pakistan who produces UHT milk products Haleeb Milk and Milkpak. MILK INDUSTRY OF PAKISTAN
Pakistan is the 4th largest milk producing country in the world with dairy as one of the fastest growing sectors of the country. An estimated 33 billion litres of annual milk is produced from approximately 50 million animals managed by 8 million farming households. In the year 2004 05, the contribution of the livestock sector to Pakistan’s GDP was at 11% per cent, while the processed milk sector contributed about 0.43 per cent. The milk economy represents 27.7%2 of the total value of the agriculture sector. Being a highly perishable commodity and produced primarily in the heart of the rural environment, milk reaches the consumer only with much difficulty and increased cost. Urban usage of milk is only 30% with the formal milk processing industry handling only 2 to 3 % (around 1 billion liters) of total milk production of the country. For the other 97%, a multi-layered distribution system of middlemen has evolved for milk supply. An estimated 20% of current milk production is lost from income generation due to fragile infrastructure facilities required for a highly perishable commodity like milk. As a result of these factors, Pakistan is a net importer of milk and milk products. An important goal for the dairy industry of Pakistan is to meet the needs of the people of Pakistan, such that while imports are welcome they are not necessary. In Pakistan the packaged milk category at first was originated in 1981 by Milk Pak, they were the pioneers of packaged milk in Pakistan. The idea was to collect the milk from rural areas across Punjab, process the milk that was collected from different milkmen, through UHT (Ultra-High Temperature Processing) treatment, and to sell it to consumers across Pakistan in uniquely colored triangular and rectangular packs that were designed to protract the milk’s quality for a longer period of time then usually a milk can be stored. Therefore when this idea was applies Milk Pak’s “Milk Packs” were very well-received by the consumer and the MilkPak in a very little time gained success and received as a quality milk. Haleeb was MilkPak’s first real competitor, which came into market in 1986 and introduced blue colored packaged milk in the market. Milk Pak’s stance further grew in standing when it merged with Nestlé in Pakistan. By the figures of 2006, the dairy milk category in Pakistan was growing at 20 percent annually, and Milk Pak and Haleeb were well-received brands that have distinctive colors and those brands brand promises to keep providing high quality, natural and healthy milk in future as well. In the recent times, it seems that everywhere we look, there...
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