hover animation preload

Internship Report on Rafhan Best Foods
by Commerce Solutions in ,

Rafhan Best foods Limited are an affiliate of Bestfoods, USA. One of the largest US food companies, with a worldwide sale of US $ 8.64 billion in 2000 and an operating income of US $ 1.33 billion. Bestfoods has operation in more than 60 countries and products marketed in more than 110 countries around the world.
Rafhan Bestfoods Limited, formerly consumer business of CPC Rafhan Limited, came into decision of the parent company in USA to spin off its corn refining business and rename consumer business as Bestfoods.
Rafhan Bestfoods Limited has brought high quality, great tasting and convenient foods to Pakistan that is enjoyed around the world. The seven trusted brands in the diverse product portfolio are.
Rafhan: Custard, Jelly, Pudding, Ice-Cream Powder, Kheer Mix, Corn Flour, Glucose-D, Jams, Corn, Canola and Sunflower Oils.
Knorr: Cubes, Yakhni, Soups, Noodles and Ketchup.
Energile: Flavoured Drinks and Fiesta for Children.
Bestfoods: Mayonnaise and Sandwich Spreads.
Skippy: Ready-to-eat Jelly.
Glaxose-D: Fortified glucose drinks
Cater Plan: Special range of products for hotels, restaurants and caterers.

Rafhan Bestfoods Limited has acquired Glaxose-D business from Glaxo Wellcome Pakistan Limited with his acquisition Rafhan Bestfoods now has a major share of dextrose market.
before one year liver brother took the possession of best food though which it becomes refhanbestfood (unilevercompany).Its head office is in Lahore they maintain their accounts in two prime foreign banks of Pakistan.
Amn-amro bank
But there key account is in abn amro Pakistan.

Ms. Mushraf Hai (Chairman)
Mr. Sikandar Nawaz Tiwana(chirf executive)
Mr. Robert Zoon.
Mr. Agha Jamshed.
Mr. Julian Frost.
Mr. E.A.Nomani.
Mian Nisar Ahmed Mannoo.
Mian M.Adil Manno.
Mian Zulfikar H. Manoo.
Mr.M.Yousuf Malik.

Company secretary; Mr.Naveed.A.Zafar Malik.

Bankers; Citi Bank, N.A.

Standard Charted Grindlays Bank Limited.
Emirates Bank International.
Deutsche Bank.

Askari Commercial Bank Limited.

Auditors; Ford,Rhodes,Maorrow.
Charted Accountants.
Leagal Advisor; Surridge$Beecho
Registered Office ; 52K.M,Lahore-Multan Road.
Pernawan,Bhai Pheru.
Head Office and Shahpur Interchange
Shares Department; 14-KM, Multan Road
(company annual report)
Overall business review
They are the one who introuduce the cubes in this particular country.In knorr they have ketchup,yakhni,chicken cubes,pulao cubes,noodles.they are market leader in almost all these knorr products .there is no question that they have to face many challenges against ketchup .but still they are enjoying good market position.they also have expanded availability of ketchup to all major cities and have also introduce the ecnomy pack.and there is no question they are getting more and more popularity by (knorr ka dasterqhawan).this particular programe helps to make them popular around the media.inspite all this there promotion in ketchup noodles and soups really helped them to achieve high market growth in retail leavel.
Inspite if increase in oil by 15%.but still they are market leader in cornoil.which is one of there key products.refhan corn oil showed his best in month of june that why they ask june as the month of oil.it shows its best on this month.because of high promotion schemes.they are showing there best in the market because of proper and complete market coverage.There (sales officer ) are so much smart that you can say it that they are working as the backbone of the company.In there Oil range they were able ti maintain their market share through timely consumer related activities.The strategy to reach lower income consumer with low unit price pack also helped us in increased penetration.In addition,timely trade promotions helped themcounter competion effectively .
In desserts they have jelly,pudding,kheermixx.they are getting their best by introducing the new products,popular flavours and small pck sizes.they have a bandle of variety in all these products.which helps them to remain as popular in the foods business.Rafhan desserta showed unprecedented growth driven through effective consumer promotion,Improved pactaging and family oriented education programe(Rafhan Meetha Maza).
Sandwhich spread is another new entry in refhans products.which has his own value in tastes.actually what is the reason behind there extensive growth is .that they invest money as a water in trade activities,all these initiatives along with distribution expansion led to double digit volume growth.
They are getting growth not only in Pakistan at this particular product bus also in neighbouring country.actually what they do is they always keep close eye in the market opportunity.and grab it with both hand whatever and whenever it is arrive.by introducing Rooh-e-Samar and Energile Sporty they are still gettinh high market share.On the same they further increase their product availability by operating special promotional vans in rural areas.
Source,(company annual report)
Chief Executive,s Reviw;
I am pleased to share with you the business result for the 15 months ended December 31,2001.The rwo key external variables impacting business were the afghan war and rising tension between India and Pakistan.the early monsoons also adversely affected our dextrose business.Whilst uncertainties increased,New challenges and business apportunities were identifies.Timely marketing and sales activation enabled us to maintain overall sales level and mitigate the negative impact on profits.
Operating Results;
Energile sells almost entirely during the summer season.Extension of accounting period to 31 december does not give any additional sales or profits in respect od Energile.Inspite of this incomparability,We maintained our sales level of last year on an annualized basis.Our gross profit percentage was lower then last year because prevailing market conditions prevented us from fully passing the direct cost increases to our consumers and heavy trade discounts were given to maintain market share.Oils continue to be under pressure and volume loss was avoided by maintaining lower margins.Focus on brands,supported by marketing and sales activation,helped achieve sales growth of 33% in knorr,Whilst the decline in desserts category was reversed.
present status
Rafhan Maize Products Co. Ltd. started its operations in 1952 as a pioneer maize processing industry in Pakistan.
Haji Muhammad Shafi (Late) was the founder of the company. Haji Muhammad Shafi was an innovative person. He derived the company name (Rafhan) very tactfully from his three sons.
The names of his sons are:
Muhammad Rafi
Muhammad Hanif
Muhammad Nisar
. Rafi
In 1952 the company was established on very small scale.at that time it was involved in manufacturing of corn product only.during there work mr shafi researched that the demand of starch will increase in the future.because of no rapid preparation of starch at that time.so mr haji sharif decided to to produce starch from corn.Fhot these reason he decided to import machinery from abroad.and decided to sell its 50% shares to any big company.So an American firm called cpc took 50% shares of refhan.and in 1998 best foods took the possassion of the refhan due to which it become refhan best foods.and in 2000 best best is hand over to leverbrothers.due to which it become refhan best foos(unilever company).
in this way, the popular name of Rafhan is invented. Today brand name Rafhan is very popular among people.
Overall history
ü 1952 company started operation as the first major corn processor in the country.
ü 1962 refhan became affiliated with cpc international.cpc acquired 51%equity.
ü 1963 corn oil refinery commissioned.
ü 1976 consumer marketing division formed.
ü 1985 started using Rafhan as umbrella a brand for consumer products.
ü 1987 rafhan listed as pubic limited company with 18.5% of equity sold to public.cpc continues to retain 51%equity.
ü 1990 purchased land for new consumer factory.
ü 1991 set up independent consumer food division.
ü 1992 lunch of first core brand products,knorrbouillion cubes and bag soups.
ü 1992 inaugration of perna plant.
ü 1998 independent consumer products company under new name Rafhan Bestfoods ltd.
ü 1999 purchase of Glaxose_D business.
ü 2000 take over by lever brothers LTD.
Refhan best foods is the fastest growing foods company in Pakistan.which is manufacturing and markting consumer foods.it is market leader in all major product categories.
High margin fast growing business.
Nps gowth (21%per annum).
Gp margin (31%per annum).
It has a nationwide distribution network.
It has many competitor.but still enjoying its its holding position.its competitors are mitcheals,national,shehzan nestle.but still enjoying monopoly in Glaxose_D,Glucose_D,CornOil.knorr,energile. It really have a high share in all these products.there is no question that it has to face tough competitors like tang with energile.and to compete with tang they have introduce energile rushbara,So they fill the vacuum where it needs.in ketchup
it has really tough competitors like shehzan, national,mitcheals.but they are working on it to change its taste.in case of noodles they have competition with meegi but still they have a high market share.But in case of corn oil Glaxose_D cubes they have a some sort of monopoly.and enjoying full market share.
Rafhan Best foods to merge with Lever Brothers
By Dilawar Hussain

KARACHI, Oct 3: While the last month's market rumour of Lever Brothers Pakistan's 'firm bid' to takeover Tapal Tea, may have after all turned out to be phony, the giant tea to personal products producer is yet again in the news.

A copy of a joint press release issued to the three stock exchanges, by Lever Brothers Pakistan and Rafhan Best Foods Limited on Tuesday, confirmed that the agreement for merger of Bestfoods with Unilever had been approved by the shareholders of both companies on October 2, after clearance from the regulatory authorities in US and EU. "An eventual merger in Pakistan", the statement said, "will be subject to the approval of the directors and shareholders of both the companies and of the Court".

During the day's trading at Karachi Stock Exchange, the 50- rupee share in Lever Brothers Pakistan, shed Rs22.75 to close at Rs952.25. Around 3,140 shares changed hands with the stock hitting the day's lowest and highest at Rs951 and Rs981.

The 10-rupee share in Rafhan Bestfoods did not react and closed Tuesday at the long-held price of Rs248.10.

The joint press note went on to state that the merger (of the two parent companies) had gone to create a global food and consumer goods company with a portfolio of powerful worldwide and regional brands with strong growth prospects. It reproduced the words of Patrick Cescau, the new Director Foods business in Unilever, who said: "Our goal is to build a truly new company-one that is even better than and different from either of the two great partners as they are today. This is not just a merger. It's a true transformation. And the result will be the pre-eminent food company of the world".

The press release said that the chiefs of the two local subsidiaries: Delpon de Vaux, chairman & CEO of Lever brothers Pakistan and Suleman Daud, MD & CEO of Rafhan Bestfoods had stated in a joint communique: "The subsidiaries of both companies in Pakistan will continue operating with the same commitment to serve their customers and meet the expectations of their shareholders".

The two bosses were stated to have expressed confidence that both companies would bring together 'tremendous management resources', capable of realising the growth and synergy opportunities presented by the merger of the two parent companies. "There will be no immediate changes in their relationship with their respective business partners, suppliers, distributors and trade", the two heads were stated to have emphasized.

Lipton and Brooke Bond have together provided Lever Pakistan the leadership in the Pakistan tea market with 45 per cent share. Earlier, Lever had taken into its fold the 'Polka', which added to its own 'Walls', has established the company firmly in the ice- cream business. The Rafhan Bestfoods, created on April 3, 1998, following the spin off of the consumer business by CFC Rafhan Limited, stands out as one of strongest among the 22 listed companies on the food & allied sector of the stock exchange.

With the ultimate merger with Rafhan, Lever Pakistan would not only add to its portfolio the half a dozen popular food products including the Knorr range of items, but also the blue-chip, Glucose-D.

Early this year, Rafhan had bought over the ailing ghee-cooking oil-soap producing company: Kakakhel Industries Limited. With hindsight, it becomes easier to understand now why Rafhan, which had nothing to do with ghee-cooking oil and soap should have decided to take over the unit and make an effort to revive the operations; Lever's expertize in the areas, perhaps, were foreseen to prove valuable asset. Or is that just a co-incidence?


Their objective is: customer satisfaction + people development + business practices + innovation and learning = financial performance.
missions ;
Ø we are the leading consumer products company in the Pakistan,a multinational with deep roots in the country.
Ø We attract and develop highly talented people who are exitited.empowered and commited to deliver double-digit growth.
Ø We server the everyday needs of all consumers everywhere for foods ,hygience and beauty through branded products and services that deliver the best quality and value.
Ø We strive to remain an ever simple and enterprising business.
Ø We use our superior consumer understanding to produce breakthrough innovation in brands and channel.
Ø Our brands capture the hearts of consumers through outstanding communication.
Ø Through managing a responsive supply chain, we maximize value from supplier to customers.
Ø We are exemplary through our commitment to business ethics,safty,health,envirnment and involvement in the community.
There main slogan is;
(Bring out the Best )
Codes of business/vision.
Standard of conduct.
We conduct our operation with honesty,integrity and openness, and with respect for the human rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we have relationships.
Obeying the law.
Unilever companies and employees are required to comply with the laws and regulations of the countries in which we operate.
Unilever is commited to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company.
We will recruit,employ and promote employess on the sole basis og the qualification and abilities needed for the work to be performed.
We are committed to safe and healthy working conditions for all employees.we will not use any form of forced,compulsory or child labour.
We are committed to working with employees to develop and enhance each individuals skills and capabilities.
We respect the diginity of the individual and the right of employees to freedom of association.
We will maintain good communications with employees through company based information and consulation procedures.
Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality,and which are safe for their intended use.products and services will be accurately and properly ladelled,advertised and communicated.
Unilever will conduct its operation in accordance with internationally accepted principles of good corporate goverance.we will provide timely.regular and reliable information on our activities,structure,financialsitution and performance to all shareholders.
Business partners.
Unilever is commited to establish mutually beneficial relations with our supplier,consumer and business partners.
In our business dealings we expect our partners to adhere to business principles consistent with our own.
Community involvement.
Unilever strives to be trusted corporate citizen and as an integral part od society,tofulfill our responsibilities to the societies and communities in which we operatePublic activities.Unilever companies are encouraged to promote and defend their legtimate business interests.
Unilever will co-operate with governments and other organizations,both directly and through bodies such as trade associations in the development of proposed legislation and other regulation which may affect legitimate business interests.
Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests.
The environment.Unilever is commited to making continusus improvements in the management of our environmental impact and to the longer term gola od developing a sustainable business.unolever will work in partnership with the others to promote environmental care,increase understanding og environmental issues and diddeminate good practice.Innovation.In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society.we will work on the basis of sound science.applying rigorous standars of products safety.Competition.
Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws.unilever companies and employees will conduct their operations in accordance with the principles og fair competition and all applicable regulations.
Business integrity.Unilever does not give or receive,whether directly or indirectly ,bribes or other improper advantages for business or financial gain.no employee may offer.give or receive any gift or payment which is,or may be construed as being,a bribe.any demand for,or offer of,a bribe must be rejected immediately and reported to management.Conflicts of interests.All unilever employes are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company
Unilever employees must not seek gain for themselves or through misuse of their positions.

Future prospects; 
At present as we all know is that our beloved country in under pressur .But still there is a path to growth wèich will be the path of refhan best foods.actually what the lever brother believes is that there is lout of potential at this particular region of asia.which the y want to get.and they are getting it with there great leader qualities.what they only need to focus only is to mechanize there distribution activity.and they are working on it,by adopting this by the time they will maitain a healthy business growth in the future INSHAALLAH.

Part two

Company management system;

Organizational chart;
Policy formulation ;
Employees personnel;
Major managerial policies/styles;

Organizational charts;

Part 2

Major Policies.best foods policies gives us a path to remain toward our destinationand on moral.here there are some policies of Bestfoods.Ø Our company policy is to provide best quality foods.which not only attract our customer but also fulfills the leagal requirements of government.
Ø Our company policy is to provide our employess such an envirnment which
He lpls them to get perfaction and experience on their particular field.so that they can better fullfil there obligations.Ø We also a have training programe for developing our employees technical skills.
Ø To develop such an envirnment through which our employees can have self confidence,moral values.
Ø We do our level best to work in accordance with the law and order.
Ø What we try is to create awearness among the people about the company performance through public channel.
Ø Company expect from his employ to work ethicly.and not to involve in any such activity which effect the company performance.
Ø Employees should not have financial binding with supplier and competitors.
Ø Employees should not try to shift business secrets to any other.
Ø Employees should not try to use company asset for the their own benefits.
Ø It is the policy of the company to comply with all laws and regulations applicable to its operations.as such laws and reglation are authoritatively interpreted and administered.
Ø Its is in the company interest to communicate in a forthright and accurate manner with its stockholders,employees,and other interested public and private groups and institutions,and that it respond to valid requests for increased public disclosure or use of company information,including improper trading in the company stock,is prohibited.
Ø It is the policy of the company to prevent unauthorized disclosure,or use for personal gain or advantage,of trade secrets,confidential business information,or any other significant undisclosed information concerning of the company.
Ø The company expects its employees to observe the highest standards of business ethics.They should not engage in any activity which would either conflict or interfere with the performance of their company responsibilities.Any investment,outside interest,or other activity that may appear to present such a comflict,either directly or indirectly through family members or others,should be avoided unless an exception is authorized,after full written disclosure of the facts,through normal administrative cchannels or by the corporate general auditor.
Ø Employees who purchase or have any influence on the purchase of commodities may not engage in personal investment or speculation in any commodity futures.
Ø Employees may not act as director,officer,partner,employee,agent or cconsult for a supplier,customer,or competitor.
Ø Relationships with customers,consumers,suppliers,competitors,;abor organization,and governmental bodies and official are to be based on fair dealing on fair competition in qulity,price and service,and on complience with applicable laws and regulations.the giving of gifts.loans.or favors in an effort to sell products or services or to influence business.labor,or governmental decisions is prohibited.
Ø It is a violation od US laws for the company to make any contribution to candidated for federal elective office.similar prohibitions or regulation of political contributions may exist in other countries and in state laws in the US.Therefore.any contribution by the company directly or indirectly to any political party,political committee,or candidate for public office (including the establishment of a political action committee,or the purchase of tickets for banquets and other social events) .

Ø The principles in this policy statement are to be observed regardless of the form of the transaction.
The term gifts,laon.favor,and contribution are used in the broadest sense.They apply to a transmission of,or any express or implied promise to transmit,anything of value,regardless of form,whether in money,property,ot services,including the use of facilities or personnel.
Ø The company must maintain books,records, and accounts which is in reasonable detail,accurately and fairly all its transactions and activities.
 Ø No transaction is to be authorized or entered into with the intent that it shall be documented or recorded in a deceptive manner, nor is any false or artificial documentation or book entry to be made or ordered to be made for any transaction.similarly all funds , asets and transactions must be recorded on the appropriate books.

For policies they make surveys first,unilever also gives suggestions.Executive committee also plays his role in all policies.
Meeting are very frequent here usually monthly.But it can be 3 or 4 depemd upon the sitution.but what I saw here is meeting are very long.and everyone plays his role.

There are almost 65 officier at this particular company.
Departments,No of employee in each department.

Export food solutions Chief Executive Office
2 5 2

Finence HR/ADM Manufacturing/fasilabad
13 3 2

Manufacturing/perna Marketing Quality Control Perna
13 9 3

Research&Development Sales Supply Chain

6 35 11

PDP(performance development plan)
PEP(performance evaluation plan )

These are the two form through which performance of officier are judged and assessed.All the promotions are progreed through these form.These two tools helps in making career ladder also .which is six monthly.
Here the evalutuon method is 360degree based.
Your peer bosss subordinates all make youe evalution
Here there is a open door policy.people feel free to talk with even M.D.and the management styles here is democratic

Human resource department

Employees benefits&advantages;

This department is also called the backbone of the any company.because the success of any business is depend upon it.The reason is that the employees benefits is related with this department.All the recruitment is to be done by this department.
Training.recruitment,selection,and compensation are the main function performed by this particular department.

This is one of the important function of human resources department.All employees needed specfic training related to their function to mmaintain companystandards.Training is not only important for the employees but it is necessary for newly hired people whether they are experienced or not.
Training is also important to develop carrier planning and promotion system and records for monitoring employees carrier progress.it help manages to evaluate and recommend manages for development all activities and only training provide information regarding how to institue and operate quality improvement programs and team building.

Employees Benefits$Advantages;
Benefits are the rewards which are given to employees in the response of there good performance.it is being analyzed that employees productivity is directly related to benefits .if a firm wants to motivate their employees a good number of benefits should be given to them.Refhan best foods by having in view this strategy are giving quite a reasonable number of advantages to their permanent employees.some of these are given below.

Conveyance Allowance;
Special facility is given to the ladies staff for the pick and drop daily and in a emergency wheneer needed.cconveyance allance is also given to the employees that is 300 per month.There is also the facility of patrolling.which is 4rs per Km.

Over time;
The cost of living allowance of rs350 per month os added in employees pay.the over time is paid to the employees as .
Cola+18%+house rent+conveyance allowance.

Shift Allowance;
Shift allowance is fiven accordingly to the basic pay.However evening shift allowance is rs10.and the night shift allowance is rs20.

Group insurance;
The company in case of death of employees will pay rs 10000 on mercy ground to the deceased family in addition to the compensation paid by the insurance company against insurance.

Company also send its employees for hajj.The decision of the employees to be send is done by having a draw in formal gathering.
House rent Allowance;
The company pays house rent allowance to its permanents employees from 80% to 85% of their basic salary inclusive of the cost of living allowance of 505and 18%increase in wages on account of the rise in cost of living.


Company allow total 41 leaves to its permanent employees with in a year.
Ø Annual leaves consist of 21 days
Ø Casual leaves can taken for 10 days.
Ø Sick leaves are 10..
The company has established its own gratuity policy/fund for the purpose of financial assistance to be paid on retirement.Permanent workets,office and mill staff subject to the conditions laid down in company gratuity policy,This payment of gratuity is not statutory as written under (standing order)ordinance in 1968.The company has established procident fund under Pakistan industrial and commercial employees (standing orders)ordinance 1968 and all employees are its members.
The gratuity establish by the company would be admissible on completion of continous ten years of service also upon resination instead of completion of twenty fice years of service.However,the gratuity would not be payable in case of dismissal upon misconduct in case service is less than twenty-five years.
All payment workmen,office and mills staff including all those cavered under EOBI shall continuee to remain 58 years.This applies to all permanent employees covered and benefited under this settlement.
The retirement age of workmen and employees is 60 years except those who are found medically or physically unfit to perform their respective duties.The company shall have the right to refer such cases to company medical officer appointed within the company in the Rafhan dispensary and in case of his opinion that employee can not perform his duty due to sickness or physical weakness.The company shall have the right to retire such employee on attaining the age of 59 years.The oponion of the company medical officer shall be final and can not be challenged at any forum.

Long Service Award;
Company gives long service award .These service awad are based on service basis.

10 year = Tea set
15 year = Blanket
20 year = Iron
25 year = ceiling fan
30 year = sewing machine
35 year = T.V

Funeral Expenses;
A company will pay rs 1500 to window of deceased employee for funeral expenses.More amount can also be granted from welfare fund.

Fair Prices Shops;

Pulses of about 7 kg is given to permanent employees.
Purchases limit of consumer product increase to rs 250 per month.
Discount on purchase of consumer product is 45%.
Sugar 6 K.G per month.
Rice 6 K.G per month.
Soap 2 packets.
Corn oil 3 tins.

Christian Religious Ziarat;
Christian employees are given a fund of rs 40000.

Employees in the following areas will be provided three uniforms per annum instead of two uniforms.They would also be entitled to shoes as being provided to attendants,drives,and operators at’
Glucose refinery, Special Glucose, Dryers,Dextine, Engineering, BoilerHouseOperators, Expeller House.Oil Rfinery, SoapSection, SpecialStarch, storeHelpers, ProjectStoreHelpers, Warehouse,BardanaWorkers, Maize Production Workers (already being provided) Mali and Helpers.

Ramzan Working Hours;
The staff observes the following working hours during the month of Ramzan only without any break.The relaxation has been given by the company in weekly total hours due to Holy month.
Office Staff; Monday to Thursday ands Saturday
8 a.m to 3 p.m
8 a.m to 1 p.m
mills staff&Day Shift; Monday to Thursday ands Saturday
7.30 a.m to 2 p.m
7.30a.m to 1 p.m

Marriage Allowances;

The company pays to the employee rs 3000/ upon marriage under the existing policy.it is also agreed to accept seven double cases instead of six per calender year basis under this fund.the left over double cases can be carried forward in the next year.in case of an employee is left out of the double cases during a calender year due to the completion of double cases,he will have the right to apply out of the quota of next year.

Education Scholarships;

The company give scholarship to 40 children of the permanent employees of the company which will be allowed under the existing rules. The company has also agreed to increase rs 50 per month in each category of scholarship.
For those employees who are not covered under the workers children education cess ordinance 1972.The company will pay monetary assistance to one child of such emplyee studying up to metric subject to the fulfillment of same conditions as laid down under the workers children education cess ordinance.The monetary assistance to the employees child will be given equivalent to the amount being paid to an employee covered under the children education cess ordinance

House Buliding Loan;
Amount of this fund is rs 1000,000/with a maximum loan of rs 40000/per worker and staff.The interest will be charged@rs 3200 on usual terms and conditions of this loan.

Part Three

Administrative/management styles;

By section.
There are 2 section,
1 head office.
2 Plant.
Plant related administration is only up to plant.plant administration administer only the plant.and headoffice administer only the head office.HRM deals with both plant and head office.here in headoffice peoples are very well disipline.So there is no chane of strike or dispute in head offi ce.Same is the case with the plant.
Here both in headoffice and in plant administrator are very strick by the rules and regulation.Otherwise the here is very friendly.prople fell free to talk with each other.here the administrative style is democratic not the autocratic.
Administration styles has his impact on the people here.but senior executive here have a combine type of attitude.at the time of closing they are really strict.but at begning little relax.
But when you talk about the styles on the morale of the people.then you can take the example of this that
After its merger with the lever brother.people are very much frustrated about their future.they are very much cautious that what will be happened in the future with respect to their jobs.and all these things are really effecting the efficiency of the people performance.the is the one vview of the picture but on the other there are a bundle of incentives like hajj ticket,allowances,really incouraged the employee to show there best.and they are showing their best here.because all these activities incouraged the people.here the working envirnment is very friendly mess and tea was the two thing which I am really missing.there is no question that when you provide all these facilities then the moral of employees will automatically rise


All stationery is issued by the administration department to various departments of the company. It also maintains the record of such stationery. Administration department prepares reports about the issuance of stationery on monthly basis.

Arrangements of the repair and maintenance of factory building is made by the administration department.
Tea is provided to all management during working hours in order to keep the staff fresh and to improve their efficiency. All arrangements for entertainment are performed administration department. Arrangements for entertainment includes purchase of milk, sugar tea etc.
RECEIPT AND DISPATCH OF MAILThe administration department receives mail and distributes it to the relevant person. In the same way it dispatches all the mail of the company. Mail is made through OCS, TCS, or postal method.

Part four;
Total production maintence.
Production facilities.
Perna plant.

Perna plant;Refhan best have there plant in perna .that’s why they called it perna plant.there plant is one of the best plant of the asia .which is no 2 all over asia.This plant is 52 km from Lahore.They has purchases this plant in 1990.and then there production from 1992.they made a no of products at this particular plant like
Custard, cornflour, jam,kheer mixm energile
The manufacturing of refhan corn oil is not made ath this particular plant.manufacturing ofoil is done in Rafhan plant which is in faisalabad.
Staff,They really have a trained staff.people are full of skills there with great working experience they are not only producing the quality products.but also making handsome changes in it.company is also providing the handsome salary with the pick and drop dervice.at the same time what I had observe there is that the working condition were very good there.they have a really nice mess there.and everyone is putting his best there.

Total production management; 
Through TPM (total production management.we shall achieve our golas of providing best quality products to our customers at a cost which is lower then our competitiors.and deliver reliability which meets our customers requirement.we shall continuously maintain these standard through our team of high skilled and motivated people.focused on continious improvement and innovation and with operations which are safe and defect free.

ü Zero accident.
ü zero breakdown.
ü Zero defects.
ü Zero wastages.
Product quality beter then competitor.

5 s, 
ü Sort.
ü Set location.
ü Shine rise.
ü Stand rise.
ü Sustain.

Production procedure,There plant is one of the best plant of asia.which is really modernize.for production of all its product they use 3 basis.
With the help of these three basis they made all there products
Basis of starch.Through starch they made
And all these products have a bundle of flovours.

Basis of dextrose, 
Through dextrose they made.
Gloxose_D of different flovour.
Energile of different flovour.

Basis of sugar,Through sugar they made.

Quicksert_jelly,pudding,Kheer mix.Energile rushbara.
They have 2 scret code of business
Which are not know to any one.
There are 2 main dumping machine base material.base material is rushed into these machine.then through dumping it send to mixing machine.after which labortary check is to be taken.then it goes to packging side.
All this procedure is so organized.That there is no chance for the any beakdown.and targets are fuuly achieve through these plant.sone they do have to face problemlike packging material is not properly available.Due to which they have to face some problem.But normally they produce there product before date,

Production facilities; 

Access To Raw Material; 
Access to raw material some times causes a problem at plant is situtated far from supplier in the city but for some products such as skippy jelly they import raw material from abroad.So in some cases they have to face problem.other wise it is really at the right place.

Low Land Cost; 
The cost incurred to acquire the land here was much less then that of any location near to Lahore.that’s why this plant is located in huge area.and one of the biggest plant of Pakistan.

Radio connection with head office; 
The pant is located 38 KM from the headoffice.Availing this location vicinity between head office and the plant,Rafhan has developed its own radio network.Now data at head office computer network is accessible from the plany.through radio waves.Which really help to make better communication between head office and plant.

Layout Equipment; 
Plant layout in the integrating phase of a production system.The machines for manufacturing cubes,soups,tamato,ketchup and energile are laying on second story of the building.There are not very big machines and also supported by automatic packing machines.


Plant Maintenance;
Maintenance is the physical change or activity that is essential for economical running of the equipment.At Rafhans plant a maintenance department is working consisting of two engineers with six assistants.The department looks after the machines of the plant.

Room For Eepansion;
This plant had been made by having into consideration coming 100 years. There is an ample land round it.Which can be easily used as acquired if needed.This land will really be helpful for the future expension.

Quality Control Assurance; 

The plant is very sensitive to the issue of quality and hygiene.The company believes that

99% lean is unclean
from this you can have an idea.
Also the company policy is

Prevention not correction.
Although the company uses different chemicals to make products germ free .But preventative measure are also taken here
Each worker and visitor, washes his hand mouth and wears polythese bags on shoes,So that minimum germs can enter in the production area.Insect-killer devices are installed on different places as a safety measure.
The store where flour bags are kept,a good number of rodent- traps are place there.

Land in Right Chemistry; 
In perna plant there is a special waste water treatment plant.With the help of this waste get treated and make useful for using again.Then this water is used in the near fields for more fertility.they are realy carefull about all these measures.

Car Parking Availability; 

As this plant covers a large area of land so there is a place for car parking of office staff and visitors too.This really facilitate the workers to work safely.Beacause there they don’t have to worry about the there cars.they have a complete check system for all the cars.

Work Force; 

Low class labour is easily available there .They can easily be hired from that area.where as staff and upper level management go from Lahore on regular basis.


Company has its own transportation system,Staff get picked and dropped from the main head office.This pick and drop facility really facilitates the employees.due to all these measures they show their best.

Health Facilities; 

Company has a special contract with the social security hospital.Who provide specialist doctor with ambulance in case of emergency.they are really carefull about the health facilities.because there worker are there assets.which they don’t want to lose.

Housing facilities; 

This particular company don’t offer housing facility itself./but for the compensation of this offer house rent allowence.so that they can have a beteer facilities of life.

Near Future Problem;

It is expected that in coming twenty years plant will be in the center of residential area.So there will be a problem of pollution.so for this there might be a beed to shift .

Highly Sophisticated Technology; 

They use highly sophisticated technology.With the use of it Rafhan has increased its productivity and reduced its labour cost.

Utilization of Sun- Light; 

In the second story of plant at some places roof transparent is use.The sun-light illuminate the hall during the day time.It saves a fairly good amount of electricity.through this they save allout.

Adequency Of Circulation; 

The movement of transportation to and from factory is very easy and do not cause any problem.There is also an emergency access to fire alarm,fire-fighting equipment and ambulance for the safety of lives.


There is a good arrangement for the ightning system within plant.however in the case of failure ,high power generators get started.That is for the continious production process.

Rafhan’s brand mark varies from brand to brand or product to product. Like type of lettering and colour of Rafhan, Knorr, Energile etc.
Rafhan has registered trademark of all its brands like Energile, Glaxose-D, Knorr, and Bestfoods etc.
Part five; 

Company marketing mixx

Pricing strategy

Distribution strategy.

Brand strategy.

Promotion strategy.

4.1 Marketing budget:
15% of total sales.
4.2 Decision making authority in marketing department.
At Rafhan marketing executives, brand managers are all take active part in decision making however the final decision making lies with the departmental head i.e. marketing manage (Mr. Mubashir).
4 P’s of Rafhan Bestfoods Limited.
The product of Rafhan includes consumer food products, e.g., Custard, Jelly, Cooking Oil, Dextrose Foods, Noodles, Mayonnaise etc.
The product’s price vary from product to product. Some popular product’s prices are as follows.
(Source: Marketing Department)
Rafhan Corn Oil
1 liter
Glaxose – D
450 gms
Bestfoods Mayonnaise
1 kg
Knorr Cubes
400 gms
Rafhan Custard
300 gms
Knorr Ketchup
200 gms
Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore – Pakistan.
Placement / Promotion
They place their products in local as well as in foreign market. They export directly and indirectly.
Export Directly è Central Asian Countries.
Export Indirectly è USA, UAE.
Rafhan promote their products through media, and other trade incentives to distributors and wholesalers.
(Source: Marketing Manager)
The management of a company has differentiated its product through its prestigious brand name as compare to other local companies.
It launched uniform and standardized product therefore, there is no need for market segmentation because the wants and other characteristics (i.e. geographic, demographic and buying behaviour) of their target market are somewhat similar.
Rafhan has adopted the strategy of market aggregation. It views its target market as a single unit i.e. one mass marketing strategy for its product line of foods. Rafhan’s target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan.
Infact there is no separate department for marketing research. The marketing executives are responsible for the research work. Every executive have assigned one brand, for the purpose of research and is responsible to report their research work about any modification of their respective product.
5% of marketing budget.
(Source: Marketing Department)
In Dextrose Foods and in custard they have major share in the market and its pie is growing @ 10% per annum
Rafhan is considered to be a trusted and premium brand because of its unique health association Rafhan is positioning their product in the best of their customer health which also differentiate from their competitors. Over the last 38 years, Rafhan corn oil gained increasing consumer preference as a result of high and consistent quality meeting the international standards.
In 1998 two new oils, canola and sunflower were introduced in the 100% pure oil segment, which further strengthened brand positioning and broadened its consumer base. The company has recently launched Rafhan Corn Oil 10 liter economy can and 1 liter affordable pouch to cater to the needs of various income house holds.
Rafhan Corn Oil consumers are enjoying the concept of health cooking oil that was introduced in the country by Rafhan.
(Source: Marketing Department)
Marketing entire out put under producer brands. Rafhan is marketing all of its products under its own brand name.
Rafhan popular brands includes:
Cater Plan
Glaxose – D.
Rafhan’s products image building features includes:
Rafhan colour by itself is a selling advantage. For the sake of variety they have full coloured products.
Rafhan maintains the high standards of quality of its products for the entire target market, which creates a strong image in the consumer’s mind.
It is the policy of the company that it replaces the products damaged due to manufacturing or quality fault whenever claimed.
“Satisfying a Global Appetite” is the international slogan of the Rafhan Bestfoods. Other includes:
Energile è The energy drink.
Knorr è Life can be so delicious.
Rafhan Oil è No oil is better than Rafhan Corn Oil, Canola Oil and Sunflower Oil. A part of your diet.
In Rafhan packaging the product line is done according to the product nature. In order to have attractive and impressive packaging, company uses the services of various packaging agencies such as Packages and Saima Packages. For the benefit of the consumers, care instructions are also given on the package. e.g. not for oven use and shelf life of a particular product etc. Rafhan also uses multiple packaging strategy for its product like Knorr Chicken Cubes, Energile Ras Bhara, Knorr Instant Yakhni etc.
(Source: Marketing Department)
Rafhan uses
Carton Packs
Soup Packets
Dressing Bottles
Oil Tins
Jelly Cups
Energile Sachet Packs
Rafhan is using two types of labels:
Brand label
Descriptive label (bread spreads, yakhni, corn oil, energile etc.)

(Source: Marketing Department)
Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
Rafhan prices its product to achieve a certain percentage of return on its investment. The base of pricing is the time consumed in the production process and target revenue per day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15 on 5kg of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market. They have fixed prices products due to the reliability of consumers towards price. Prices are decided keeping in view the prices of other products of same size, category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.
(Source: Sales Department)
Rafhan Bestfood Ltd. using radio, TV and Billboards and newspapers for advertising purposes.
They have allocated 35% of marketing budget for advertising.
Which one is more effective
Cost benefit
More access
(Source: Marketing Department)
There is no monopolistic competition of products in the market like Rafhan Energile, Rafhan Custard and Glaxose-D.
There is oligopoly competition in the market for its products like Ahmad, Shezan and Mitchell’s Jams and Jelly.
Brand Competition
Ahmad, Shezan, Mitchell’s and Lever Brothers, Nestle, Seasons.
Substitute Competition
Jam-e-Sheeren, Rooh Afza, Shezan Juices, Planta and Dalda Cooking Oils.
Rafhan Best Food Ltd. provides trade incentives to distributors and customers against competitors. They also provides various schemes to attract the customer.
(Source : Marketing Department)

Rafhan Oil
Rafhan Bestfoods
(Source: Marketing Department)
Foods Industry
Dextrose Food
Chicken Cubes
(Source: Marketing Department)
In order to increase the sale volume or market share, Rafhan uses to develop new products keeping in view the customers demand and taste. This strategy helps in strengthening company position and result in healthy profit.
Rafhan act on a strategy of producing and selling large quantities of quality products, that’s why they are able to keep the unit costs low and offer need satisfying products at attractive prices. Rafhan develop produces and deliver affordable products with enough variety and uniqueness that nearly every potential customer can have exactly what he wants, Rafhan is a quality conscious firm, they never compromise on quality that’s why their products are No. 1 in the market and they are market leader.
Rafhan is not engaged in Societal marketing so far.
(Source : Marketing Department) 

best foods
product is what is perceived to be.Thus a product is more than something with physical characteristics.In a very narrow sense.a product is set of tangible physical assembled in an identifiable form.A border interpretation each brand as a seprate product.

Rafhan best food LTD has a wide range of its product.Rafhan best foods conduct a regular research and surveys on the changing habits of the taste of the customer.Results are then given to special research and developent department and accordingly new product are lounged and even alternations in the existing products are doneTheir policies are usually between innovarive and initiative caregories of new products developments
This company has a unique product and a no of product. And here are the some details for them.

Source.(Philip Kottler)

KNORR,Knorr is a well known product all over the world.it has its market in almost in 100 countries.it is not only it’s the world leader in soups and cubes.
Knorr was introduced in Pakistan in September 1992.with its first product knorr chicken cubes.which is made from the real chicken gained wide acceptance among housewives for the prepartion of savoury dishes.Normal,Routine dishes matte by house wives were no longer boring.knorr chicken cubes when added in daal vegetables gave these dishes a distinct chicken flavour .
Since then there is no looking back.knorr has successfully expanded its product line catering to the needs of Pakistani consumers.In 1993 knorr soups and instant noodles were launched which became an instant hit among housewives and children.Instant yakhni was the next product from knorr that captured the imagination of Pakistani consumers in 1995.knorr instant yakhni is a broth made from real chacken that gives instant energy along with great taste.
In 1998,knorr pulao cubes were introduces providing the traditional tasting pulao.it offers a convenient alternative to pulao yakhni because it is made of real chicken and the right blend od spices and herbs .With knorr pulao cubes house wives prepare rich,authentics and traditional tasting pulao.

In the same year knorr enteres the sauces category with real tamato ketchup.In 1999 chilli0garlic sauces was added to knorr sauce product line making it s hot favourite among young and old alike.The latest addition to the knorr family is the convenient 2-serving soup which helped the product line to reach down.

Knorr Tamato Ketchup

packing285gms into 24 glass bottles into case
700gms into12 glass bottles into case.

MakingMade from real tomatoes,knorr tamatto ketchup is a dip which has a spicy,tangy tamato taste.
Tamato puree,suger.salt,vingar,maize,starch,spices,onion powder garlic powder,xanthan gum,citric acid,permitted food colours,preservatives.
to be used as a dip with snacks for enhancing taste.consumer benefits.The only ketcup made with real,fresh,juicy tangy tomatoes,
Shelf life12 month 

Knorr Noodles

packing65 gms plastic pouchinto 72 pouches into case.

Product Concept. 
A tasty and filling noodles snack which can be prepared within minutes,at any time .

Noodle cake.wheath flour,natural vdgetable oil,salt,sodium and potassium phosphate and carbonates,permitted food colour,flavour mix,salt monosodium glutamate,sucrose,maize starch,chcken fat,yeast extract powder,ginger flakes,soya sauce powder,artificial chicken flavour,spices,citric acid,sodium inosinare and guanylate and green vegetables.

Taken as a snack or meal at any time.

Shelf life, 
12 month

Knorr Yakhni,
Packing,4Gms into 1152 sachets into case.
Product Concept, 
Real chicken yakhni in powder form.just add boiling water.

Refined salt,modified maize starch,mosnosodiom glutamate,sucrose,hydrogenated vegetable fat,artificial chicken flavour,chicken fat ,chicken meat, inosinate and guanylate,citric acid,spices,parsely and permitted food colours.

Tasty,nutritional hot drink,consumer benefits.easy to prepare,delicious,all the goodness of chicken,affordable price.

Shelf Life,
18 months

Knorr soups

4 serving 12 pouches into 6 dispensers=1 case.
3 serving. 12 pouches into 12dispensers=1case.

Package Size,
48g (4serving ) chicken corn.
55g (4serving ) hot n sour.
43g (4 serving) chicken n ginger.
43g (4serving) chicken mushroom.
24g (2serving) chicken corn.
27.5g(2serving) hot n sour.

Usage,Reall tasty soup which is to be cooked with water.

Shelf Life,15 months.

Knorr Chicken Cubes.

20 Gms into 288 shells into case.

Salt ,hydrogenated palm oil,mososodium glutamate.sugar chicken fat.chicken meat,yeast extract powder,maize starch,artificial chicken favour,soya sauce powder,sodium inosinate,guanylate,spices,citric acid.

Shelf life,18 months.
Pulao cubes.
20 Gms into 288 shells into case.

Product concept,Made from real chicken and the right blend of spices and herbs,knorr pulao cubes bring the delicious taste,colour,aroma of traditional pulao to all the rice dishes,


Sandwhich speads and mayonnaise are the well know products of the best foods.these are the internationally recognized products.best food introduced it in 1996.best foods spreads are a delicious blend of selective top grade eggs,vegetables and good quality oil.
These were introduced in 1998 .there are three variants in these ready to use sandwhich spreads.chilli garlic spreads was first introduces by Rafhan best food cater to local tastes and complement eating habits.

Sandwich Spreads,
300 ML glass jar into case.

Product Concept, 
Best foods sandwhich spreads are a delicious blend of selective top grade egg,vegetables and good quality chicken that enhances the tastes of plain bread and sandwhich.
Vegetable oil,whole eggs,sugar,chicken meat,bell pepper,carrots,salt,vinegar,citric acid,xanthan gum,artificial flavour,preservatives and permitted food colours.

With plain bread, in a sandwhiches.

Consumer benefits, 
Ready to use ,excellent taste,convenience.

Shelf life,9 months.


Packing,300 ML into glass jar into case.

Product Concept, 
A multi purpose creamy blend which makes salads ,spreads dips,sandwhiches and burgers taste great,main ingredients,vegetables oil,whole eggs,sugar,vinegar,artificial flavour and colours.

Consuner benefits, 
Ready to use taste great and conevient.

Shelf life,12 months.

Dextrose is an important contributor to the companys business.Energile and Glaxose_D a
Are two major brands which over the years have successfully gained wide consumer
Acceptance because of their unique benefits.Energile is a unique drink which refreshes
brain and body available in five fruity flavours,enjoyes by all family members.The
energle franchise extends beyond urban cities to incluse rural areas also.

They have launched a new Energile rusbhara powder drink in 1999 which is more
refreshing than other one step preparation drink.It is available in three fruity
flavours,orange,pineapple and fruit punch,all packed in muli coloured aluminum foil
pouches giving attractive and fresh image.

Recentaly,Rafhan best foods has acquired Glaxose_D brand.With this acquisition Rafhan
best foods has now become a stong leader in the dextrose market.Glaxose_ D is well
established brand in Pakistan which offers instant energy during and after illness.Toexpand the consumer base they have recently launched Glaxose_D multivitamin.

Main ingredients.

Top grade dextrose monohydrate.,table salt, natural fruit, sodium citrate tricalcium phosphate
vitamin C, and permitted fioois colours.

Dissolve 2-3 tables poons into water mix,mix well and drink.

Consumer benefits,

Refreshing taste. Instant.

Shelf life.

12 months.


Refhan corl oil is one of the most ppopular brand of the Pakistan.it has a great market at this partiucular region.people really prefer this brand to other brands.it gives total satisfaction to its customer.it is so much poplur among the people because it meets all the international standars of quality
In 1998 two new oiol.canota and sunflower introduced in the 100% pure oil segment,which further strength brand positioning.company ha also made a lot of modification in the size as well as in quality.like it has introduce 10 litre ecnomy pack.and also a 1 litre pack.

In desserts we have quick sert jelly, custerd, pudding, kheer mix, and cream powder,
which is available in variety of sizes as well as in flavours.strawberry is a famous flavour
of the the jelly, while custerd is famous for his banana and vanilla.and in pudding we are

well know by choclate flavour.
Rafhan desserts rank as one of the new few truly well know food products in Pakistan
it has not only its demand in Pakistan but has also demanded abroad.With the pessege of
time people are showinh there great interest in these particular products.rafhan is well
know for introducing its new flavours.and very popular,like it has introduce kheer mix
which is the cluster of quality rice, and is available in new looks.

Rafhan desserts enjoy market leader status and continue maintain leadership through high
quality products blended with innovative marketing and sales strategies.

Rafhan quick set jelly.

Product.Jelly crystals
Packing.85 packet into 96 packet into case.
Product concept.
It is an exciting and east to prepare and have a delicious taste.
Main ingrediantsRafhan sugar, vegetable gum, adipic acid, potassium citrate, artificial flavour,
potassium chloride, and foods colours,

usage.Cooked in water, refrigerated, prepared and served independentylt or in conjunction with other desserts.

Consumer benefits. 
Easy to make ,easy to eat, taste great.

Shelf life. 
9 months.

Kheer mix.

Product is a custerd powder.
It is available in different packing like,
300 into packet into 36 packerts into a case.

It is famous in providing the quality .its main ingredients are.
Refined suger.
Artificial khewra flavour.
Usege.Cooked in milk, refrigerated and served.
Benefits attached with it.It provides a excellent quality.and rich in taste.easy to prepare.
Shelf life.12 months.



Pudding mix

Product.Pudding mix.

Packing.85 packets into packets into a case.

Rafhan pudding is one of the best pdding of Pakistan.which is really popular aming peoples of Pakistan.
Ingredients.Refined suger, vegetable gum, maiza starch, artificial flavour, and permitted food colour.
Usage.It is cooked in a milik refrigerated and sewrved independently or in conjunction. Withother desserts.
Consumer benefits.
Produce excellent quality, convenient to prepare, and easy to eat, Taste great.

Shelf life,12 months.

Jams/chicken spreads.

375 gms,glass bottle.

Usage.It is basically used for mainly in breakfast.and at evening to make snaks.
From consumer point of view.
Irs really easy to make.and taste great. It is a junck fruits.
Shel life.12 month.

Chicken spread.Availavle in different quantities.
It is really easy to make,I mean used with bread.or to make burger,sandwhich,and taste great.
Shelf life.12 month.

Cater plan.
Caterplan is dept in rafhan best foods which delivers products in bulk.and it provides its services to almost 60 countries.
Its aim is to provide rugt product at riffht place.it is famous for its highly quality.it provies it supply tyo kfc,macdonads, pizza hut, dunkin donuts,
Because of its high deman it has achieve a hight growth.

Cater plan products.

Serial no. products. packing.
1 BF mayonnaise 4 kg into 4 jar.

2 bf mayonnaise. 1 kg into 6 jar.

3 BF mayo magic. 4 kg into 4 jar.

4 BFitalian dressing 1 kg into 6 jar.

5 BFfrench dressing. 1 kg into 6 jar.

6 BF100 island dreesing. 1 kg into 6 jar.

7 BF coleslaw dressing. 4.32 kg into 4 jar.

8 knorr batter mix. 1 kg into 65 jar.

9 knorr chicken powder. 600 gm into 10 pch.

Caterplan products.

Serial noproducts packing.
10 knorr chicken bouillon paste 500 gminto 10 pch

11 knorr curry paste. 4 kg into 4 jar.

12 knorr korma paste. 4 kg into 6 jar.

13 knorr tikka paste. 1 kg into 6 jar.

14 flesta drink. 750 gm into 10 pch.

15 rafhan Q.S jelly strawberry. 2 kg into 6 box.

16 rafhan Q.S jelly raspherry. 2 kg into 6 box.

17 rafhan Q.S Jelly bananna. 2 k g into 6 box.

18 rafhan Q.S jelly pineapple. 2 kg into 6 box.

19 rafhan Q.S jelly orange. 2 kg into 6 box.

Serial no. products. Packing.

20 rafhan custard vailla. 1.5 kg into 6 box.

21 rafhan custard strawberry. 1.5 kg into 6 box.

22 rafhan ice cream powder vanilla 1.5 kg into 6 box.

23 BF strawberry syrup. 1.3 kg into 12 bottle.

24 BF chocolate syrup. 1.2 kg into12 bottle.

25 rafhan corn flour. 1.5 kg into 6 box.

26 rafhan apple filling. 3.5 kg into 4 tin.

27 rafhan canola oil. 17 ltr into 4 tin.

28 rafhan corn oil. 17 ltr into 4 tin.

caterplan of rafhan best foods ltd.
Products varieties

Mayonnaise,mato magic,1000 Iland
Dressing dressing, French dressing, Italian
Dressig,Tartar sauce & Mustard.

Bouillion chicken powder, batter mix, instant
Yakhni, chicken bouillion paste,
seasoning powder,tom yam paste

Soups chickrn corn soups,hot$sour soup,
Tamato soup, cream soup.

Sauces tamato ketchup, chilli garlic, tamato
paste, BBQ soace, soy sauce, curry . paste,tikka paste, korma paste.

Desserts. Jelly,Custerd, pudding mix, ice cream,
Powder,whipping cream,apple filling,
Strawberry syrup$chocolste syrup.

Oils corn&conola.

 Places. Usages.

Duckin Donuts Donuts suger,cinnamon suger, aple
filling,strawberry filling,Bavarian filing.

KFC. Coleslaw dressing, mayonnaise,
Tamato ketchup, chilli garlic sauce,
BBQsauce and fiesta.

McDonalds. Big mac sauce, mayonnaise,tarter,
Sauce.tamato ketchup,chili sauce.



Here the firms has to consider many factors for determining the price.

Selecting the price objective.

Determining deman.

Estimating costs.

Analyzing competitors costs,
Prices,and offers.

Selecting a pricing methoh.

Selecting the final price.

Price is simply the cost plus profit of the firm.they have many competitiors in the market.so they have considers about the competive price while selecting new price and schemes.

Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
Rafhan prices its product to achieve a certain percentage of return on its investment. The base of pricing is the time consumed in the production process and target revenue per day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15 on 5kg of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market. They have fixed prices products due to the reliability of consumers towards price. Prices are decided keeping in view the prices of other products of same size, category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.
(Source: Sales Department)
Freight Absorption Pricing Strategy
Under this policy, the company bears all the freight out cost for FOB only.
Cash vs. Credit Strategy
All the sales of the company are on the cash basis and no credit facility is given to its customers i.e. distributors.
Basic Method of Setting Prices
Rafhan is using the following methods for price setting.
Price to Distributors
The company provides products to the distributors for the prices decided keeping in view the cost, the target revenue and competitors prices.
Prices Charged by Distributors to Retailers
Rafhan gives margin of certain percentage to distributors so in this way prices to be charged by distributors to retailers are fixed.
Prices Charged by Retailers to Ultimate Consumers
Company influences prices charged by retailers. So retailers are bound to charge fix price to ultimate consumer.
(Source: Marketing Department)

What we believes is
High price high quality.

How to set the price of the product.

Prices are set by taking into consideration into the prices of the competitors.
As there products are highly quality.so usually they charge high prices.
What they belive is.high price high quality.
There price are high.because they believes in zero defects.
They charge different prices to registerd and unregistered retailers.
There prices are fixed because there products are reliable.
Prices are set by taking into considertion the size,type of product.

Price discounts and Allowances.

Cash discounts. 
A cash discount is a price reduction to buyers who pay their bills promptly.a typical example is 2 /10 net 30. which means that payment is due within 30 days and that the buyer can deduct 2 percent by paying the bill within 10 days.such discounts are customery in nature.

Quality discounts. 
A quantity discount ia price reduction to those who buy large volumes.This is given to increase company sales.So that firm can have more revenues.

Functional discounts. 
These are also called trade discount which are offerd by this particular firm.it will be given to those who perform certain function.such as storing,selling book keeping.

Seasonal discounts. 
A seasonal discount is a price reduction to buyer who buy merchandise out of season.they offer different discount on springs and on summer.

Allowances.Allowances are extra payments designed to gain reseller participation in special programs.trade in discount are price reduction granted for turning in a old item when buying a new one.trade in allowances are most common .

Promotional pricing.

Company use different pricing techniques to stimulate early purchase.

Special event pricing. 
It is given to increase sales.like in the month of ramzan.

Low interest financing.
Instead of cutting its price.the company offer customer low interest financing.

Rafhan best food is increasing its sales by adding a service warrenty.if there product will spoil before the due date inspite of proper storage then they give proper warranties for them.

These are some way of promotional pricing which are charge by the company.
Image pricing. 
They chage high price of of there existing image of best food.and now with the merger the levers brother.they tries to cash their name.


Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore – Pakistan

This particular company has almost 1500 distributors out of which almost 900 are active distributor and other600 are those toward which a company has a DR balance

Its manufacturing plant is in PERNAL.
Its warehouse is in SADDHUKI.
All the manufacturing is done in the pernal from where it is shifted to saddhuki

Typer of retailers.
Speciality stores.Thes are some special store which buy in hugr quantity.but the important thing for them is that your product should be visible there.like CSD stores.
Departmental stores.These are the stores in which each line of the product is shown separately,like clothing,home furnishing,house hold etc.example are pace,HKB,RAHEEM STORE.
Super markets.These are relatively large, low cost, low margin,high margin.which are desgined to serve the total need of the customer.

Then ther are some.
Discount stores.Convience stores.

This is something about the markets where the products of rafhan best fiood prevails.through these market they sell there products.


Distributors are the institution through which availabiulity og products is possible.rafhan best foods have almost 600 distributors.and they have a very good relationship with them.and rthe important thing is that they must integrated into total marketing mix because of time and mioney required to setup an efficient channel.
The main procedue of distribution of distribution is that first it goes to ware house and then to distributor and atlast to ultimate consumer.
While the selection of channel company considers customer buying patterns and the nature of the market.However company should follow the creation of three control.market coverage and cost that is constant with the desired level of consumer service.


Source (marketing dept)

They have their own M.T. Pool and they supply products at their own transport upto Distributor’s wholesaler’s as per agreement.
They have 500 distribution all over the Pakistan, distributor’s are responsible to provide product to wholesaler’s retailers and customers. They have fare price shops at their factory/plants to provide products at ex-factory rates to their employees.
Rafhan uses the following multiple channel of distribution.
Rafhan uses a lot of distributors and retailers to supply its products in each market where the final customer might reasonably look for it. While appointing a distributor for a particular area, management uses its own judgement to select such a person that has a potential to operate effectively.
(Source : M.T. Sec and Sales)
On receipt of order, head office prepares a delivery order and sends to factory, factory office prepares delivery challan, one copy of the challan is sent along with the truck of luggage. One copy of delivery challan is sent to head office. On the basis of delivery challan invoice is prepared and sent to party by the head office.
It is a company policy; profit should not be less than 40%. They will give 2% extra commission on company price on meeting their Dec. 2000 target through claims.
(Source : Marketing & Distribution)


Promotion consist of a diverse collection of incentive tools,mostly short term,designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade.
Company logo and labeling.Company logo type is one of the their major products.But not on products woth the small laels.where the space is needed to present both information required by the government and other information they believe is helpful to the consumer.
Company name or the logo type is usually shown in most prints add in magazines and newspapers,however they do not show them during television commercials.before my internship I also don’t know about the best foods logo.
Rafhan is using two types of labels:
Brand label
Descriptive label (bread spreads, yakhni, corn oil, energile etc.
Rafhan Bestfood Ltd. using radio, TV and Billboards and newspapers for advertising purposes.
They have allocated 35% of marketing budget for advertising.
Which one is more effective
Cost benefit
More access

Promotional activities provides chance to company to communicate with the potential consumer to “Beat the drum” about it products.
Rafhan uses the following promotional methods.
The company sets up the store displays and sales officers make sure that items displayed are properly arranged so that they can look attractive on eye contact level.
Company arranges their stalls in the exhibition at which the products are displayed and sold at discounts.
Sometimes the company enters in the cooperative advertisement with other companies and the logos of such companies are printed on Rafhan gifts that are given free along with the product of those other companies.
The company gives off seasonal schemes of discount to distributors with an objective that the benefit of discount should be passed to retailers and wholesaler.
Other sales promotional techniques adopted by Rafhan includes T.V. Programmes i.e. Knorr Kay Zaikay sponsored by the company. .
(Source: Sales Department)
Corn Oil (all packs)
Trade Incentives for Retail
Rs.30/case on primary secondary sale
Primary sales – on lifting basis
Secondary sales – through claims
Quantity discount (through claims)
Rs.15/case on buying 5-15 cases
Rs.20/case on buying 16 and above.
Distributor / dealer 1.5% extra commission on company price on meeting there incentives December 99, through claims.
Canola and Sunflower Oil (all packs)
Trade incentive for retail
On lifting basis through invoices
Quantity discount (through claims)
Rs.15/case on buying 5-15 cases
Rs.20/case on buying 16 and above cases
Distributor / dealer 1.5% extra commission on company price on meeting their target through claims.
(Source: Sales Department)
They incur 45% of the marketing budget on promotional activities.
They use the combination of both push strategy as well as pull strategy.
There are different methods of promotions which are used by the rafhan best foods.

Promotion methods.
Newspaper .
Road display.
Sales promotion
Trade shows.
Personal selling.Order gelter.
Order takes.
Sport sales.
People sales force.

Part six

Company accounting.

Finance system.

Accounting policies.

Basis of preparation.The accounts have been prepared on historical cost abd are in accordance with the requirement of companies ordinance 1984,international accounting standard applicable in Pakistan.

Revenue recognition. 
Revenue from sales is recognized upon dispatch of goods to customers.
These accounts have been prepared under the historical cost convention.
The company operates provident fund scheme for its permanent employees. Equal monthly contribution are made, both by company and employees, at the rate of 8.33 % basic pay and dearness allowance for those employees who have served the company for the period less then five years. For the employees who have completed the five years or more of service, contributions are made at the rate of 10 %.
The company has also created pension ad gratuity fund schemes for its permanent management employees. The pension scheme provides lifetime pension to retired employees or to there suppose. Contribution are payable to the pension and gratuity funds on a monthly basis according to the actuarial recommendations. Actuarial valuations are conducted annually.
IAS 19 (revised1998) required that liability in respect of accumulated compensated absences (leave) of employees should be accounted for in the periods in which these absences are earned. According to the previous accounting policy of the company these absences were accounted for on payment basis. Accordingly management has decided to change the accounting policy of the company.
Operating assets are stated at cost less accumulated depreciation. Leasehold land is amortized over the period of the less Capital work-in-progress is stated at cost.
Depreciation on fix assets is charge to profit and loss account applying the straight line method whereby the cost of an assets of written off over its estimated useful life full years depreciation is charge on addition except major addition or extension to production facilities which are depreciated on prorate base fro the period of use during the year. No depreciation is charge on assets disposed off during the year.
These are stated at the lower of present value of minimum lease payments under the lease agreements and the fair value of assets acquired on lease. Aggregate amount of obligations relating to assets subject to finance lease is accounted for at net present value of liabilities.
Amortization of leased assets is charged to current years income as a part of depreciation.
Stores and spares are valued on a weighted average base.
Stock-in-trade is valued at the lower of cost and net realizable value. Cost is arrived at on weighted average basis.
Foreign currency transactions are converted into rupees at the rates of exchange prevailing at the date of transaction.
Consistent with prior years provision for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits and tax rebates available, if any, or the minimum tax at the rate of 0.5 percent of the turn over, which ever is higher.
Revenue from sales is recognized on dispatch of goods to customers. Sales are also recognized when the company specifically appropriates deliverable goods against such confirmed order where payments are secure.
Long-term investments are stated cost less provision for diminution in value.
Short-term investments are stated at the lower of cost and market value on a portfolio basis.

Sources;(company annual report)

Rafhan best foods.

Balance Sheet.
2001. 2000.

Tangible fixed assets. 214,268 226,632
Intangible fixed assets 219,281 235,171

Long term loan. 62 103

Current assets.
Stores and spares. 12,148 10,068
Stock in trade. 148,141 191,936
Trade debts. 344,994 201,706
Advances,depositsprepayments and receivables. 45,238 51,682
Cash and bank balances. 26,990 2,647
Total current asset 577,511 458,039

Current liabilities.
Cuirrent portion of loan and finance lease. 87
Short term running finance. 175,836 31,985
Deposits,creditors,accrued liabilities. 150,788 131,074
Taxation. 27,649 129,505
Dividends 98,697 52,163
Total current liabilities. 452,970 344,814

Working capital 124,541 113,225

Capital employed. 558,152 575,131

Share capital and reserves.
Share capital. 61,576 61,576
Share preminum. 24,630
Reserves. 25,396 766
Unappropriated profits 452,396 481,240
Total share capital and reserves 539,368 568,212

Long term liabilities. 18,784 6,919

Capital employed. 558,152 575,131


Rs Rs
Sales 1841,358 1,484,604
Cost oF sales 1,249,608 931,248
Gross proFit 591,750 553,356
Selling and administeration exp 281,356 202,487
General and adm exp 102,784 58,260
Financial exp 30,144 38,253
442,034 329,233
profit before other income 149,716 224,123
other income 9,275 4,198
profit before taxation 158,991 228,321
Taxation 70,840 88,300
Profit after taxation 88,151 140,021
Unappropriated profit brought forward 481,240 397,253
AppropriationsInterim dividend 18,473 12,315
Proposed dividend 98,522 43,719
Unappropirated profits carried forward 452,396 481,240
Earning per share 14 23

Sales deptIn the refhan best foods products are categorized by 2 categories
The following products are under the category of A.
DEXTROSE. BOUILLON.Energile chicken
Energile red syrup puloa
Energile rasbhara curry cubes
Energile sporty yakhni
Zaiqa masala
DESSERTS. SOUPS.Baby custard bag soups
Quick sert jelly noodles
Kheer mixx
SAUCES. OTHERS.Knor mayonnaise corn flour
Knor s spreads 
Then comes the category B
Corn tomato
Canola chili.

Gloxose_D rte jelly
In the same way they have categorized the cities also
CITY 1(for high demanding areas)
CITY2 (for middle demanding areas)
First comes the city 1
The following cities are under category B.

Now I will try to explain you the procedure of sales how the sales is to be made by this company

PURCHASE ORDERWhenever any distributor needs any stock then he sends the purchase order to faisal who deals with the purchase orders who after checking the position of stocks in the computers make the GDO (goods delivery order) this gdo is passes to the warehouse through which shipment is send to the distributor invoices of the stocks are also made by this person zeeshan.
TRADE DEALSUsually premium is given to the distributor to fasten the sales which is called the sales deals these incentives are given in such terms like if you will sale the 12 dozen of refhan corn oil then you will be entitled to have I tin free usually these are given to those retailers who sells company products more then the targets.
TARGETSTargets are revised annually first then monthly then weekly you can take the example og annual target lets say I 5 lack ton is the sale of chicken cubes last year then the m.d may set the target like 5% of 5 lack and then 525000 becomes the new target for the coming
INCETIVES.There are the slabs for the incentives like it will start from the 70% if the retailer sells the 70% of the targets from that he will entitled to have a incentives higher the % of sales higher will be the incentives from140% the slabs become same incentives are also given in term of cash like today’s there is a offer on energile if you sell energile up to that limit then you will be able to get 7000rs actually these are the schemes through which the actual price of the product comes down for shopkeeper like when you get I tin of oils free from the sale of 12 then automatically your price comes down.

DISCOUNTSDiscount is also the type of incentive which is given to retailer you can understand it from this scheme
Distributors incentives (valid for both energile galaxose_d) distributor achieving their 100%targets for June by June’s closing will get extra discount of 3% on invoice price through claims so please take maximum advantage of this incentives
This is the discount offer u can have an idea from it.
CLAIMSClaims are given in the sense like there is the offer sell 3 get one free when thee offer are given by the company then naturally shopkeepers get that I free energile from the distributor and that distributor get that from the company not from his own pocket and these claims are accumulated for the month and then these are adjusted at the end of the month

 1primary sales
2secondary sales
It is that sales which is made directly made by the company like when the company deliver good directly to the shops.
SECONDARY SALES.Secondary sales are those, which are made through retailer
One thing should be clear here the sales that are made through retailer are got under the category of secondary sales.

Key accountsThese are of two types
Csd(canteen store department)
Usc(utilities sales corporation)
These are the two types of primary sales that are directly made by the company
According to the lever brother this key account sales should be 35% of the total sales but the present picture is something different because at present it is just 7 %to8% at this recent meeting which was held on 24 June the main focus point was that to increase the percentage of key account.
Csd.There are only 12 csd in Pakistan which are in the main cities like Lahore,islambadad.Karachi,peshwar
Usually this facility is provided to army officer that’s why these stores are in the kent area now they are planning to increase the no of csd so that through them they can increase their sales.
Usc.It is further divided into 2 types
1 small utilities store
2 departmental stores
Departmental stores are like you can say hkb rahat store and small are those like which are in your town.
Rsf (rolling sales forecast).
In rolling sales forecast you will make the projection for the next year it mean to say is that what stocks level you will needed for the next year and these projections are determine from the last year volume first of forecast is made for the year then for month and then for a week.
Targets.Targets are yearly goals that you have to achieve you set the target before the start of year targets are further divided monthly, weekly.

Latest volume.Latest volume comes from the projection actually you do not keep or made manufacturing at the same time for the year first of all you make the projection like you can say that 1000 is your monthly requirement for July then 250 will be you weekly stock supply which you must have to supply to the retailer manufacturing is made weekly because it cost you so much so company puts its order according to requirement all it is done to reduce the storage cost.
Closing.In these days people are very busy because of closing they made closing on monthly basis at every end of month they revise their accounts, books, and prices
Quality policy
(To meet our expectations and needs refhan best foods is committed to developed ensure consistent supply of affordable convenient safe and high quality products)
1 our company is a most successful in proving day to day necessary products of daily life who has a unique relationship with this country
2 we chose the selective people and polish them these people with their capabilities tries to increase the business by 10%
3 we provide everywhere everything to the people with the certification of health
4 we try our best that our business should be simple and in a advance pattern
5 we try our best to make it possible what our customer needs
6 with the regular supply chain we make a deep flat linkage between supplier and customer
7 our rules and regulation are based on safety health, envirnment protection,
TRADE MARKTINGTrade marketing is the coordination between markting, sales and production actually first of all marketers plans what to sells and how much to sell then the production is to be done in a plant which is to be sell by the sales people
Orientate the organization towards customer and channel focus
· Voice of sales in cross functional groups
· Role differs from company to company, reflecting the relative diversity of trade, customer and the business trading philosophy.

1 input to brand plans.
Ensure input of shopper, market, trade and customer data to brand specific plans
Brand performance feedback
Branchwise sales feedback
Qualitative revies
Provide regular input to brand innovation plans
Compile and maintain brand and trade fact book (historical volume and sku pricing.sku contribution.mergins, promotion evaluations.pop summary.
2-channel/pop strategies.Define channels (customize unilever channel tree)
. Understand channel,pop dynamics
. Shopper behaviour understanding
. Trade survey.triggers.barriers.satisfaction.
4 define availability and visibility targets.Set targets and monitor progress
Develop merchandizing strategy based on channel and pop attributes.
5 quarter rooling activity plans.. Design plan. Cost. Agree and implement al trade activation
. Monitoring is responsibility of field sales
Compile post evalution of all activation plans.
6 pricing and trade terms.inputs to commercial on margin strategy
Recommend specific trading terms
Projects munafa
Track trade margin stucture of competition.

7 managing trade support budgets.Regular evalution of all promotional activities compare results against targets
. Recommend total sales support budgets (tpr.merchandizing, branding, sampling.incentives)
Monitor and control cost.
7 communications.design and implement all sales support literature
, sales pesenters
munafa pamphlets
ensure regular flow of accurate information
internally to sales and othe functions
activation updated
ensure accurate and upto date competitor activity tracking
8 volume forecasting.responsible for reliable and accurate input into companys supply chain planning system.
Advise marketing on demand potential e.g free availability estimates
Trade stock pipeline analysis for input in sop process
Provide feedback to markting.e.g branch volume estimates

TRADE PROMOTIONS.Today we have to plan to work on trade promotions in trade promotions we have to decide that what %we have to give up to the shops in this they have to decide the discount% so that they can promote their market.


Rafhan Bestfoods have increasing its instead of recession in economy in 1997-98 Rafhan Bestfood sales increases 25%. In 1998-99. Sales increase 36% from previous one.

Rafhan Bestfood some time use this strategy whenever they introduce new thing in market they used to go customer first. It is sort of market test from where they can judge the success of their how product.
Although the economy of the country continues to be under pressure with ongoing increase in utility and fuel prices as well as slowdown in manufacturing and service sectors. The implementation of general sales tax at the retail level, lower trade liquidity, and declining consumer disposable income will result in an even more challenging business environment. But there is a significant potential for packaged food in Pakistan and opportunities for export to the Central Asian States. There is a healthy business growth in the future years.
Rafhan has a big sales force. Almost 300 persons are in their sales force. Rafhan policies are to maintain the sale so that they prefer experienced sales person.
They recently started sales force training and development because they know feel the importance of training. Most of the countries are giving stress on sales force training and spending lot of money on their training and development.
Rafhan Bestfoods set their sales target on monthly and annually basis. These target are divided into zone and then into cities level.
Those incentives which motivates and person to sell more. incentives in term of cash like for sales force if a sales person achieve their target then their incentive is like this
(Source: From Sales Department)
Target Achieved
Incentive Offered on SA
the incentive offered is the percentage of the salary. As sales person get closer to the target there is increased in incentive.
They offer 2.0% extra commission on company price to their distributors on meeting sales targets whenever claim.


On 2 th july for the first time they ask me to have a marketing visit. My boss mr chohan ask me and come with the finding that trade schemes are offer by the mitcheals national meegi in ketchup actually they sent me on the market to let know what trade schemes are given by their competators after a 4 hour market visit I have come with the finding that they are offering 12+1 so that’s why our company decided12+2 so that they can have a larger share
While my stay at rafhan best food.they have sent me at market visit.the purpose of my viusit is to check whether the distruibutor is providing the proper market coverage in term od proper supply of goos.and to check whether he is passing the scheme properly or not. and then I have to repor6t directly to the (general manager of sales) .
It was a very good experience.The areas which are assigned to me are.
Gujraat .
Lala mosa .

It was the 7 day market visit.and it was a total learning tour. Through which I practically learnt about the relationship between distributor and retailor.what are the flaws in the system of distribution.and what the problem face by the retailers from there distributor.

Retail Audit Details
Prepared by: Usman Rana
To find out the availability of stocks.
Shelf spacing of key products like Custard, Energile, Glaxose-D, etc..
To Check out whether the schemes are properly Given to Retailers by our distributor or not?
During my seven days field visit (4 -10th July). I have observed that overall availability of stock is not as good as it has to but. Shelf spacing is the area where we really need to focus. As far as for the trade schemes offered by the company, I found very poor results, almost in all areas. The schemes are not properly given out to the trader and the communications between DSF/S.O and retailers was not encouraging.
Areas visited in Shadra
Main bazaar, GT. road, Baigumkott, Rana town, and Vandala bazaar
Shops visited = 60
Category A 23
Category B 18
Category C 19
Here what I have observed is that distributor were not providing the proper market coverage to this area. Availability and visibility both were very poor. Same is the case with the schemes. I could not find a single trader who was happy with the distributors. People here prefer to buy from Lahore because of low prices. Now the question arises why the people are willing to buy from Lahore? The reason is simple; prices are low in Lahore as compare to these towns. Actually what the wholesaler is doing that he’s passing the chunk of scheme to the traders, which he receives, from the company. If the distributors of Shahdra and Mureedkay will provide proper coverage with the full schemes, then there would be no need for the traders to buy from Lahore.
Areas visited
Gt. Road, Main bazaar, Jail road.
Shops visited = 20
Category A 3
Category B 15
Category C 2
The availability of products was not very good. The need is to provide proper coverage you can have an idea from the analysis. That how far it is way from the benchmark but when you talk about the schemes then situation is darker here. What the distributor is doing that if there is an offer of Rs/10 for any product, he keeps Rs/8 in his pocket and offer only Rs/2 as a discount to the trader.
Areas visited
Main road, Ghala mandi, Main bazaar
Shops visited = 40
Really pleased to inform you that the market situation in this particular area is very good. People are very pleased with their distributor. They receive regular supplies. Salesmen are very active here and the Retailers are enjoying the full schemes offered by the company. In the nut shull trader were pleased with the service provided by their distributor. I am glad to inform you the visibility of product is also very good here
Areas visited in Ghakkar
Gt. Road, Main bazaar, Ghala mandi
Shops visited = 19
Area visited in Wazirabad
Shops visited = 20
In the market the availability of stock was very good Stocks are provided at their regular time but visibility of stocks was not good. I saw only custard and cornflour on the shelves. The same was case with the schemes. When I told them about the current schemes, they got really surprised. My observation was that distributor is not passing the schemes properly. He amends them and offers them on partial basis.
Areas visited
Main bazaar, Ghala Mandi, Khalid Road, Ghung Road,
Shops visited = 40
I observed the availability and visibility of stock was good. The problem area was schemes like other cities. I visited one of main super store of Sheikhupura, and asked him about schemes. He called the distributor and asked him about the current schemes of corn oil 10 Ltr. Distributor told him that the schemes was Rs/25 for2 tins but in actual the schemes is Rs/30 for 1tin. You can have idea from this that the schemes are not properly given out.
Area visited in Gujrat
Main bazar, Jail road, GT road.
Shops visited = 40
Area visited in Lala-MusaKachari road, Main Bazar, GT road
Shops visited = 39
The market is same like other cities here
Availability of stock is good
Visibility of stock was poor
Schemes were not properly passed out