Introduction The Noon Group Marketing Essay

Introduction The noon Group Marketing EssayNoon Group of Companies is being managed by the Noon family. The group has qualified and experienced professionals. The Noon Group of Pakistan strives to improve its profitability and safeguard its stakeholders interest while maintaining highest superior standards and serving the community.The Noon Group of Companies has unhomogeneous business ventures and Noon Pakistan special(a) is ane such profitable venture of the Group. Apart from Noon Pakistan Limited a brief description of the other business ventures be as follows-1.Noon Sugar mill around LimitedThis venture was incorporated in 1964 and manufactures ovalbumin sugar. Initial crushing condenser was 1500 MT of sugar backe which has been increased to 4000 MT over the passage of time. In 1986 an alcohol distillery was setup to manufacture industrial alcohol. The total number of tidy sum employed is 683 and currently efforts be current to increase the crushing cleverness to 80 00 MT/day.(Nurpur Foods-About Noon Group)2.Pioneer Cement LimitedPioneer Cement Limited was incorporated in 1985 with a total investment of Rs.2660 million and production capacity of 630000 tons per annum. The kit and boodle is situated in Chenki, Khushab. The project was financed by a consortium of foreign lenders conduct by the Asian Development Bank. Efforts are underway for another line having a capacity of 6000 MT/day.(Nurpur Foods-About Noon Group)3.Noon International Private LimitedNoon International (Pvt) Limited is a trading telephoner which was established in 1972. The keep company employs 43 people including a team of 15 professional gross sales engineers. This firm represents various international companies of repute in Pakistan and markets their equipment in the fields of textile, power generation, sugar, fertilizer, chemical, steel, cement, food and milling.(Nurpur Foods-About Noon Group)4.Textile Technics Private LimitedIncorporated in 2004 with a total investme nt of Rs 100 million, Textile Technics is a joint venture between M/S Blue Reed of Spain and Noon International Private Limited. The project has a production capacity of 22000 meters of beating-reed instrument per annum.(Nurpur Foods-About Noon Group)5.Textile ServicesTextile Services was established in 1994 and provides services to over 200 clients of Sulzer Textile Projectile Weaving Machines. The company employs 32 people and provides training, technical service and spare parts for clients.(Nurpur Foods-About Noon Group)NOON PAKISTAN LIMITEDIncorporated in 1966 with a total investment of 553 million, Noon Pakistan Limited produces various products markly Butter, Cheese, UHT milk, HCLF, Pasteurized milk, Flavored milk, Juices, Water, Desi ghee, Honey and Jam. Installed capacity of the nominate is 72000 Liters/2 shifts and there are 700 employees. Noon Pakistan Limited has been merchandise its products under the post name of Nurpur. The plant is located in Bhalwal, Sargodha wh ile the head office is situated in Lahore.(Nurpur Foods-About Noon Group)The company has not only built a strong theme over the past twelvemonths and has also been able to offer a strong product portfolio to its consumers. Noon Pakistan Limited believes in optimum engagement of resources in enunciate to secure the interests of study stakeholders and fulfilling its obligation as a responsible corporate citizen by serving the community. The company also utilizes rigorous quality control procedures at all stages to ensure supply of quality products to consumers. This has allowed the firm to increase its turnover from Rs 311.7 million in 2004 to Rs 2436.41 million in 2011.(Nurpur Foods-Company Profile)The year 2011 was a challenging year for Noon Pakistan Limited. vital force Crisis, security situation coupled with devastating floods had exerted significant pressure on the economy and cost of living. Higher inflationary trends continued impacting their key products particularly re lated to fresh milk when shortages led to a cost increase of 16% compared to last year. Additionally, higher growth of their products led to severe filling capacity constraints and the market demand could not be met fully. Despite all these challenges, the management made serious efforts to achieve performance objectives by effective product mix, controlling fixed costs and locating new cheaper sources of raw material. Economic trends, prolonged gas and electricity outages, severe competition in selling brands and procurement of raw milk are not expected to ease out during the coming months. Due to reduced buying power, trend in the market is changing fast as consumers are looking for cheaper products in small packages. thitherfore the management at Noon Pakistan Limited has made plans to evaluate the market requirements and also further improve their production efficiency.(Noon Pakistan Limited, 2011)VISIONThe vision statement of Noon Pakistan Limited is as follows-Our vision at N urpur is to be a transformative force in our community and world at large and to serve as a model of a sustainable business alternative that nurtures friendly and economic well being in an environmentally sensitive manner.(Nurpur Foods-Our vision)MISSIONThe mission statement of Noon Pakistan Limited is as follows-Nurpur is committed to supplying the consumer and customer with the finest, high quality products and to be a leading industry in healthy and nutritious products. Nurpur supports these goals with a corporate philosophy of adhering to the highest ethical conduct in all its business dealings, treatment of its employees, and social and environmental policies.(Nurpur Foods-Our mission)CORE VALUESAt Noon Pakistan Limited, consumers are at the forefront of everything they do. The core values of the company are as follows-1. Ideas are constantly challenged to develop next generation solutions.2. Business is conducted openly and fairly while competing fiercely at the same time.3. police squad work is encouraged with individual flair for the best results.4. Tough goals are set and challenged and beaten.5. Preservation of the environment is valued and organic agriculture is sustained.6. Mutually validating relationships are valued among members of local and global communities.(Nurpur Foods-Core values)AWARDS AND CERTIFICATIONSNoon Pakistan Limited has won many prestigious awards and certifications which are as follows-1. First dairy company in Pakistan to be certified under ISO 220002005.2. make of the year award (2006-07) in the category of Butter.3. differentiate of the year award (2007-08) in category of Butter, Cheese and flavored milk.4. Brand of the year award (2008-09) in the category of Butter.(Nurpur Foods-Company Profile)PRODUCTION OVER THE PAST THREE YEARSPRODUCTIONUNITS201120102009UHT draw/Tea whitenerLtrs30,940,07920,385,29016,246,333UHT Flavored milkLtrs4,668,0714,075,4072,498,299UHT skipLtrs71,381461,722345,580ButterKgs986,3351,011,925862, 622Milk powderKgs927,9431,160,508930,894CheeseKgs203,146206,508194,020GheeKgs34,37152,19031,331Pasteurized MilkLtrs4,911,7782,663,2941,806,733Loose creamLtrs3,490Jams and honeyKgs34,03242,81223,735JuicesLtrs4,421,39910,341,16010,402,443(Noon Pakistan Limited, 2011)THE PURCHASE DEPARTMENT OF NOON PAKISTAN LIMITEDIn order to get insights about the trading operations of the barter for Department, two interviews were held with the Purchase jitney of Noon Pakistan Limited. The purchase tutor of Noon Pakistan Limited is Mr.Malik Ashraf who has been with the firm since its establishment. The operations of the plane section and interview findings are described as follows-The purchase plane section is responsible for purchasing all materials required by the head office and plant other then milk which is purchased at the milk collection centre in Bhalwal. Materials which are purchased by the department range from ordinary items worry office and plant stationary to complex materials lik e Flavors, Spare parts for plant equipment and transportation vehicles, Chemicals, Fuel and everything related to the manufacturing process, Logistics and day to day operations. Demand for requisition comes from the factory and commendation has to be given by the Managing Director. The purchase department currently has 4-5 employees. The purchase department stays in coordination with the plant and suppliers through phone and email and as such no software is currently being apply by the department. The department uses a manual system of keeping records and storing files. The purchase department everlastingly keeps 3 copies of requisitions and delievery challans. One copy is sent to the plant, one copy is maintained with the purchase department and one copy is kept by the Purchase Manager. The major suppliers of Noon Pakistan Limited are SMC, Sitara Chemicals , Jeson Foods and Danisco. Everyone is involved in the purchase process including the General Manager, Purchase Manager and people from the plant. Payments to suppliers are made either on cash or credit through the head office. Credit terms depend on contacts and relations with suppliers and can range from 15 days up to a month.(Ashraf)According to Mr. Malik, Noon Pakistan Limited believes in maintaining healthy relations with Suppliers and this is one of the key strengths of the department. The primary reason given for this was that Juices and Milk factories in Pakistan bring in no second option since suppliers are limited and few. They prepare to purchase materials from the specified suppliers and bargaining power of suppliers is high in this regard. However if relations are good with suppliers not only do suppliers cooperate but may also be lenient in terms of credit. In this regard hurt does not play a major issue but a greater issue is that of availability of materials from suppliers. Mr. Malik also stated that in case of materials needful from local suppliers, the purchase department is given n o time and purchase has to be made immediately. However when imported materials are required from foreign suppliers, the Purchase department is informed in advance as shipping takes time. Mr. Malik also stated that there is no fixed pattern of purchases made throughout the year and it all depends on plant and market requirements. The quality of materials purchased is checked at the plant and if there are defects the merchandise is returned to the supplier. Mr. Malik also stated that there is no HR department as such and the performance of the purchase department is monitored from the plant and the Managing Director.(Ashraf)When the Purchase Department gets a requisition from the plant, the respective supplier is contacted and a van or truck of the firm goes to the supplier along with delievery Challan. The goods are then transported to the plant. One issue which is being faced by the purchase department is lack of coordination with the plant. Mr.Malik pointed out an instance in whic h the plant actually required Diesel but in the requisition form mentioned Furnace Oil. He mentioned some employees in the plant try to trap the purchase department to lower its performance but due to his vast experience of working with the firm and keeping a personal record of purchases, he immediately gets to know about such issues. Mr.Malik described having more informal relations with local suppliers but with foreign suppliers a formal relation is kept. This is the primary difference in dealing between local and foreign suppliers. He also mentioned that Government Policies and Regulatory Environment do have an impact on prices because if the government increases prices, suppliers also have to increase their price.(Ashraf)A typical deliver challan and requisition form is given on the adjacent page. Original documents have also been attached in the Annexure.DELIVERY CHALLANNoon Pakistan Limited1st Floor, Mustafa Centre, 45 F, Main Market, Gulberg Lahore PakistanNo._______ partic ular date_________To,Manager, Noon Pakistan Limited, BhalwalThe following goods have been dispatched to you by Truck No_____________SRDescriptionQty.AmountSupplierRemarksKindly Sign and Return Duplicate____________________ _________________Malik Mohammed Ashraf Bhalwal Store(Noon Pakistan Limited)NOON PAKISTAN LIMITED, BHALWALDEMAND OF STORE TO BE PURCHASED DEMAND NO______DATE____________SRItem CodeNominclatureSpecificationNameA/UQtyRequiredStock in HandLastPurchaseDateRate/UnitAmountRemarks____________ _______________Store Manager General Manager(Noon Pakistan Limited)THE MARKETING DEPARTMENT OF NOON PAKISTAN LIMITEDIn order to study the operations of the Marketing Department, two interviews were conducted with Mr.Rizwan Khan who is the Marketing Manager at Noon Pakistan Limited and has been with the firm for the past 5 years. The questions asked during the interviews have been attached in the annexure. expound of the Marketing Department are as follows-Marketing research activiti es are outsourced. The Marketing Department purchases monthly reports by different marketing research agencies like AC Nielson and Tetra Pak. In this way the marketing department stays in touch with the latest trends and competitor activities. The Marketing department comprises of one marketing manager and a brand manager. The Marketing Manager reports to the General Manager of Marketing and Sales while activities of the brand manager are monitored by the marketing manager. The brand manager is responsible for dealing with various agencies as all marketing research data and ATL as well as BTL activities are outsourced. Some of the agencies with which the marketing department works are SABB Marketing, Time and Space, Orient, HRK Communications, Aura Communications, TOPAZ Communications and ADZ Communications. These agencies prepare designs of print ads and commercials. The brand manager discusses the various designs with the Marketing Manager and after making necessary amendments and recommendations gives the approval to Marketing agencies.(Khan)The Marketing Department does its planning in the beginning of the year in coordination with the Sales Department. A monthly, one-year and 5 year plan is made. The Marketing Department is consulted in all strategic decisions made at the corporate level. There is no fixed rule for determining the budget allocated to the Marketing Department and it all depends on various factors like last years profitability and market performance of various brands operational in the market. In 2012, three new brands by the name of Yogo Yogo, Dairy Rozana and Jalwa have been launched.(Khan)The Marketing Strategy of Noon Pakistan Limited is Differentiation system. However the strategy to be follow for each brand depends on the market performance and competitor activities. Since UHT milk is difficult to differentiate, the current strategy being adopted is to jell it as a milk which is enriched with vitamins needed for healthy growth a nd development. The target market of UHT milk is Housewives and working females as well as males. Different SKUs are being used to target different Socio Economic Classes like the 1000ml pack is targeted for SEC-A while the 200ml and 250ml packs are targeted towards low income households. The main competitor brands of Nurpur Milk are Olpers, Milk Pak, Good Milk and Haleeb. The marketing department does not go for an offensive strategy because Nestle and Engro are huge giants with bundle of resources. Noon Pakistan Limited can be classified as an Analyzer. Another reason for not adopting an offensive strategy is that volumes are low. Importance is not given to gain shelf plaza because there production volumes are so low that everything sells out due to high demand of UHT milk. Recently a new brand by the name of Dairy Rozana has been launched as a flanker brand to compete with the brand Dairy Omung of Engro.(Khan)The main weakness of the Marketing Department is that very little att endance is being paid towards building brand equity. The department is commission on increasing sales which is a short term approach rather than focusing on building their brands. The details about how the Marketing Department is managing the marketing mix of Nurpur milk is described in a later section.ORGANIZATIONAL building OF THE MARKETING DEPARTMENT(Noon Pakistan Limited)The Brand Manager is responsible for dealing with various Marketing Agencies and reports to the Marketing Manager. The Marketing Manager reports to the General Manager of Sales and Marketing.(Khan)THE gross sales DEPARTMENT OF NOON PAKISTAN LIMITEDIn order to study the operations of the Sales Department, two interviews were conducted with Mr.Nauman Butt who is the Sales Analyst at Noon Pakistan Limited and has been with the firm for a year. The questions asked in the interview have been attached in the annexure.The organizational structure of the Sales Department comprises of the General Manager of Sales and Marketing, subject area Sales Manager, Regional Sales Manager, Area Sales Manager, Field Managers and Sales Officers. The job description of the Field Manager and Sales Officer is the same but position of Field Manager is superior because those Sales Officers whose performance is consistently outstanding are made Field Managers. Territories have been delegate according to view and comprises of Central Zone, Southern Punjab zone and Northern zone which includes RWL/AJK, Hazara belt and Pakhtoon.K belt. Distribution is limited in Quetta and Multan because of heavy freight expenses. The process of forecasting yearly sales is that last years closing sales are doubled and the amount is set as the Sales Target for the next year. Sales Quotas are assigned to Salesmen depending on the Area and potential. Other factors which are taken into account while assigning quotas are the seasonality issue because milk production and demand fluctuates throughout the year. There are more than 280 dist ributors all over the country and each Sales Officer has to monitor and look after 3-4 distributors. The Sales department also relies on individual projections from the Sales Team when deciding upon monthly and quarterly targets. If a salesman is unable to achieve his target in the specified time, he has to achieve both, the rest target as well as the target allocated in the next period. If targets are continuously not being achieved the Salesman is fired. The salesmen who achieve targets are awarded with bonuses and cash rewards. In order to motivate the sales team, a sales competition is held and winner of Sales Man of the Year is rewarded. Besides having a Sales competition, vacation trips are also planned to motivate the Sales Team. If targets set in the year 2012 are met, the entire Sales Team will go on a vacation to Dubai on the companys expenses. Noon Pakistan Limited has also started exporting its products to countries like England, Kenya and Afghanistan. The documentation process to export products involves the Performa Invoice, E-Form Attestation, Commercial Invoice, Packing List, Certificate of Origin and summary Report.(Butt)ORGANIZATIONAL STRUCTURE OF SALES DEPARTMENTPakhtoon.K BeltSO RawalpindiField ManagerInst.S.ExecutiveSales CoordinatorSouthern Punjab ZoneGM Sales/MktSOSOFMASM RWL/AJKHazara beltRWL/AJK beltRSM MultanSOSOSOSOSOSO FaisalabadSO SargodhaFM GujratFMSOASM P.milkFM I.SIndhFM KarachiInst.SOFMASMSales AnalystNorth ZoneSouth RegionHead OfficeNSMCentral Zone(Noon Pakistan Limited)PRODUCT PORTFOLIO AND PRICE LIST harvest-festival PackingUnit/CtnRetailer MarginTrade PriceConsumer Price1.UHT milkCtnsUnitsCtnsUnits1000ml126.09%101884.83108090200ml244.35%39116.2940817250ml275.97%58621.7621232.CHAI flickCtnsUnitsCtnsUnits250ml276.38%53319.7456721200ml245.97%38516.04408173.BUTTERKGsUnitsKGsUnits200gm308.00%46392.6500100100gm6012.70%48848.85505550gm12013.20%53026.56003020gm30013.20%53010.66001210gm60013.20%5305.360061KG white2011.80%85004259 5004754.CHEESECtnsUnitsCtnsUnits200gm cottage429.10%69301657560180200gm slice3616.10%55801556480180225gm chedder4014.90%59201486800170225gm spicy4014.90%59201486800170225gm mozarella4014.60%6980174.58000200450gm chedder2013.40%68803447800390450gm mozarella2013.60%8800440100005001.8Kg mozarella413.10%51281282580014501Kg slice813.60%507263457607201Kg slice (KFC)813.60%507263457607202Kg Chedder412.10%3924981440011005.CREAMP/TrayUnitsP/TrayUnits250ml274.20%120044.44125046.36.PASTEURIZED MILKP/TrayLitresP/TrayLiters1000ml1011.70%6006067067500ml2013.30%60030680347.FLAVORED MILKCtnsUnitsCtnsUnits250ml1213.30%23319.4226422200ml1212.10%21417.83240208.PURE JUICESCtnsUnitsCtnsUnitsApple 1000ml126.10%7926684070Guava 1000ml126.10%7926684070Orange 1000ml127.10%8407090075Pineapple 1000ml126.10%7926684070 mango tree 1000ml126.10%7926684070Apple 200ml2411.80%32213.4236015Orange 200ml2411.80%32213.4236015Mango 200ml2415.40%31213360159.YOGO YOGOCtnsUnitsCtnsUnits200ml128.70%276233002510.DESI GHEECtnsU nitsCtnsUnits1Kg67.50%2232372240040011.JAMS1.5KgUnits1.5KgUnitsStrawberry 15gm60014.30%3853.854404.4Apple 15gm60014.30%3853.854404.4Marmalad 15gm60014.30%3853.854404.4Honey 15gm60014.30%3853.854404.412.DAIRY ROZANA1.5KgUnits1.5KgUnits1000ml126.12%73561.2578065250ml276.11%45816.964861813.JALWACtnsUnitsCtnsUnits250ml276.21%48317.8951319200ml245.88%34014.1736015(Noon Pakistan Limited)MARKETING MIX OF NURPUR UHT MILKNurpur UHT milk has been positioned as a milk which is enriched with vitamins needed for healthy growth and development. The milk is packed in Tetra Aseptic case which allows long lasting storage and shelf space. Currently three SKUs are available in the market which are 200ml, 250ml and 1000ml.(Khan)Initially the pricing policy adopted for Nurpur milk was market penetration pricing, which means prices were low compared to competing brands. Recently the pricing policy has been changed and now the pricing policy is competitive pricing policy as shown below-Product PackingUni t/CtnRetailer MarginTrade PriceConsumer Price1.UHT MILKCtnsUnitsCtnsUnits1000ml126.09%101884.83108090200ml244.35%39116.2940817250ml275.97%58621.762123(Khan) (Noon Pakistan Limited)Due to low volumes produced the company has adopted the policy of selective distribution. The company offers various discounts to retailers to push their products into the market. The indirect distribution channel being used is shown below-(Khan)Due to limited marketing budgets, the marketing department has to promote most of the products through Below The pains(BTL) activities. Outdoor advertising, hoardings, flyers, Trader Schemes, Taste and trial progress activities, posters, streamers, buntings and wobblers are mostly used. Even though some commercials have been aired on television, lack of budgets restricts the marketing department from making use of Above The Line advertising effectively.(Khan)SWOT ANALYSISSTRENGTHSMarket leadership in selected product categoriesStrong and Experienced Sales TeamStr ong Supplier relationshipBrand Loyal CustomersStrict adherence to Quality StandardsFirst dairy company in Pakistan to be certified under ISO 220002005WEAKNESSESWeak coordination among departmentsNo emphasis on building brand equityNo formal HR DepartmentCentralized Decision MakingNo policy of recruiting fresh bloodselective DistributionOPPORTUNITIESExporting products to foreign countriesIncreased demand for dairy products due to urbanization and increasing populationEnsuring availability in untapped marketsLaunching in advance(p) products for health conscious consumersGoing for backward integrationTHREATSReliance on few suppliersRising prices of sugarRising prices of oil increasing transportation expensesEnergy and Power Crises