Table of Contents
PART – I..................................................................................................................5 INTRODUCTION TO PACKAGES LIMITED.............................................................6 PACKAGES TODAY......................................................................................................10 COMPANY PROFILE....................................................................................................12 Mission Statement............................................................................................................17 Quality Policy...................................................................................................................18 EH&S POLICY STATEMENT.....................................................................................20 PART-II............................................................................................................................21 ORGANOGRAM OF PACKAGES LIMITED............................................................22 ORGANOGRAM OF MARKETING DIVISION........................................................23 MANAGEMENT & PERSONNEL MANAGEMENT................................................25 3. PERSONNEL WING:............................................................................................28 RECRUITMENT AND SELECTION CRITERIA:.....................................................31 OTHER FACILITIES AND BENEFITS PROVIDED BY PACKAGES LIMITED36 PART-III..........................................................................................................................40 ISO CERTIFICATION...................................................................................................41 STRATEGIC BUSINESS UNITS OF PACKAGES LTD...........................................42 Paper & Paper Board......................................................................................................47 PACKAGING DIVISION...............................................................................................49 FLEXIBLE LINE............................................................................................................55 PACKAGES LIMITED TOTAL SALES 2003 (In %)..........................................................................................57 CORRUGATED DIVISION...........................................................................................58 SOME OTHER DEPARTMENTS INVOLVED IN PRODUCTION........................63 Coating Department:...................................................................................................63 RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT.............................65 COATES LORILLEUX (INK FACTORY)..................................................................67 TETRA PAK....................................................................................................................68 GRAPHICAL ANALYSIS OF PACKAGES LIMITED.............................................69 MARKET CAPITALIZATION (PAK RUPEES ‘000)............................................69 MARKET CAPITALIZATION (US $ ‘000).............................................................69 SALES (PKR IN MILLION) FOR THE PERIOD 1972 - 2003..............................70 SALES (US $ ‘000) FOR THE PERIOD 1972 - 2003...............................................70 PROFIT AFTER TAX & DIVIDENDS (RS IN ‘000)..............................................71 INVESTMENT 1994-2004..........................................................................................71 MARKETING DEPARTMENT....................................................................................72 1) INDUSTRIAL PRODUCTS DIVISION:................................................................73 WORKING OF THE INDUSTRIAL MARKETING DEPARTMENT:...............79 Pricing Policy for Industrial Products:......................................................................90 CONSUMER PRODUCT DIVISION (CPD)................................................................92 PART-IV...........................................................................................................................98 TRAINING PROGRAMME......................................................................................98 CONSUMER PRODUCT DIVISION........................................................................98 SALES FORCE..........................................................................................................100
Packages Pakistan Ltd
MARKETING FORCE.............................................................................................101 PRODUCTS AND ITS VARIENTS.......................................................................102 ..................................................................................................................................105 MARKETING STRATEGY.....................................................................................108 BRANDING STRATEGY.........................................................................................110 PRICING POLICIES OF THE COMPETITORS.................................................114 SWOT ANALYSIS........................................................................................................123 (EXTERNAL ANALYSIS)...........................................................................................125 CONCLUSION..............................................................................................................126 RECOMMENDATIONS..............................................................................................128 Annexure-1 ....................................................................................................................131 Annexure-2 ....................................................................................................................132 Annexure-3.....................................................................................................................133 Annexure-4.....................................................................................................................141 Annexure-5.....................................................................................................................142 Annexure -6 (References) .............................................................................................143
ACKNOWLEDGEMENT
Thanks to almighty Allah for enabling me to fulfill all the requirements for the completion of my internship report. It would not be a justice in presenting this internship report without mentioning the people around me who have been inextricably related with the completion of this report. For assisting me in all respect and regards to complete this report my heart felt thanks to my supervisor Mrs. Basit Tayyab, who enriched my knowledge with wealth led ideas to pursue and power of writing this report. It could not have been possible to accomplish this report without her thoughtful guidance and expertise. It is also a great pleasure to record honorable regards to all those who helped me lot in learning and enhancing my knowledge and ability during the internship at packages limited especially to Miss Asma Shahzad (Brand Manager, Feminex), Mr.Syed Imran Moonis (B.M, Tulip) and Mr. Imran (RSM) and along with them I am very obliged to Mr. M. Abbas, who also helped in all kind of indoor and outdoor activities.
Packages Pakistan Ltd
Finally for all possible errors, omissions and shortcomings in writing of this report only I am responsible for which I hope that all concerning regards of this report will forgive me.
SAJJAD AHMED RAUF
EXECUTIVE SUMMARY
Packaging is the use of the containers and components with the addition of labeling to protect, identify, merchandise and facilitate the use of the product. Even the nature gifted us various items with packaging though they are not labeled. But all is done only to protect it and to provide the ease to user. From very early ages men became aware about the importance of the packaging and various processes were started to get safe, hygiene, facilitated goods with different type of packaging, not even the food items got attention for packaging but also the other livelihoods were paid attention in this regard especially when we concern the marketing prospects. It is impossible for all kind of industry to make the goods and then also got the expertise of their product’s packaging. They try to save their opportunities and get the packaging material of their choice from other packaging industry.
Packages Pakistan Ltd
Packages limited Pakistan came into existence in 1956 started with the corrugated line which helps in the production of the various types of cartoons and with the passage of time packages limited enhanced the production facility and started with the production in flexible line. Flexible line packages includes the packaging of these kinds of products like detergents, bags etc. In 1982 packages limited has a joint venture with the TETRA PAK INTERNATIONAL and established the TETRA PAK PAKISTAN LIMITED and started with the packaging of liquid products. To meet the ink consumption in the preparation of the packaging material. The company agreed to make the joint venture with the coates lorilleus which afterwards transfer the manufacturing facility to the company coates lorilluex Pakistan limited. In 1982 packages limited established the consumer product division (CPD) and production of the rose petal started and today packages limited has three consumer brands named ROSE PETAL, TULIP AND FEMINEX. And also holding the production facility of the consumer products for various institutes like PIA, PIZZA HUT, KFC AND PRIME MINSITER HOUSE. Today packages limited almost covering 35% of country’s facility. The major share is holding by PTC and contributing almost 50% and consumer product division holds total of 10% of the production of packages limited. Packages limited also posses the quality standard certificate like ISO 9000, 9001 and now she is contributing the ISO 14001. Packages limited also provides the various facilities to its employee at all level just get them involved and get them motivated. Today packages limited provide basic facility to its customers in the protection, preservation and convenience in shape, size and weight for handling. Packages limited always looks toward more improved and innovated products (packaging) for her customers only due to the reason that they believe on continuous improvement in the form of satisfaction from both ends.
PART – I
INTRODUCTION TO PACKAGES LIMITED LAHORE
Administrative Sciences, Quaid-e-Azam University, Islamabad 5
Packages Pakistan Ltd
INTRODUCTION TO PACKAGES LIMITED
Rapid growth of industrial economy bases on different factors Packaging is one of them. Packages Limited was born out of a dream to set up in Pakistan industries of excellence based on local raw material and talent. Packages Limited is a leading packaging manufacturing company of Pakistan. It is the sole largest industry in Pakistan serving about the 35% needs of the country. Syed Baber Ali Shah, who was the first managing director of Packages Limited, went to Sweden in 1954 to negotiate the contract with Akerland & Rausing of Sweden. Akerland & Rausing had been the leading paper converters in Europe. In Pakistan, there was no previous experience of a packaging industry. Therefore, Pakistanis needed technical collaboration with their Swedish partners. In the beginning, the first problem was the selection of site. Finally, Lahore was selected due to the following reasons: • • • Easy availability of workers. Easy availability of raw material. Easy transportation all over the country.
So, Ali family provided the capital, land, labor, management and local experts while their partners provided technology, machinery, experts and also training to Pakistanis. Syed Baber Ali was the first Managing Director.Mr. Syed Mratib Ali Shah laid the foundation stone on The 26th of March 1956. The construction was started from the Solid Board Department and by the end of October, 1956 the main shed of the factory was completed. At the same time the Swedish engineers with the help of Pakistani staff installed machinery. Packages Limited started operating in May 1957 with a paid up capital of Rs. 4.94 million as a joint venture between the Ali group and Akerlund & Rausing of Sweden. In the beginning 22 Swedish experts came to Pakistan to run the factory and to train the Pakistani staff. In 1958 production of packaging cartons for different industries was started. Usually, the packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea, Pharmaceutical products and many other products. Over the years, the Company continued to enhance its facilities to meet the growing demand of packaging products. Additional capital was raised from sponsors, International Finance Corporation and from the public in making the total paid up capital to Rs. 31 million in 1965. As a first step, Packages commissioned its own paper mill in 1968 having production capacity of 24000 tones of paper & paper board based on waste paper, agricultural waste, wheat straw and kahi grass. As the demand continued to grow, it led the Company to expand and the end of 1995 increased its annual capacity to 50000 tones of paper & board and corresponding converting ability.
Packages Pakistan Ltd
Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan Limited with Tetra Pak International to manufacture paper for liquid food packaging and to sell Tetra Pak packaging equipment. After Tetra Pak in Tetra shape, it also introduced brick shape packing. Both shapes are very popular among liquid preservation industries. The main industries covered by Packages Limited are: υ υ υ υ υ υ υ Soap Industry Shoe Industry Tissue Industry Tea Industry Tobacco Industry Food Industry Sweets & Confectioneries
In Tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares owned by Syed Baber Ali Shah and 49% shares owned by Tetra Pak International. Since 1957, Packages has been producing inks for its own consumption. In 1993, the Company agreed to form a joint venture with equity participation from Coates Lorilleux, world’s second largest printing ink manufacturer to produce inks for Packages Limited and the general market. Packages Limited own ink manufacturing facilities now transferred to the new company, “Coates Lorilleux Pakistan Limited”. In July 1994, Coates Lorilleux Pakistan limited, in which Packages Limited has 55% ownership, commenced production and sale of printing inks. Also in 1993, a joint venture agreement was signed with “Mitsubishi Corporation of Japan” for the manufacture of polypropylene films at the industrial estate in Hattar, NWFP. This project, Tri-Pack Films Limited, commenced production in June 1995 with equity participation by Packages Limited 33%, Mitsubishi Corporation 27%, Altawfeek Company for investing Funds, Saudi Arabia, 11% and public 29%. In 1995, an agreement was signed with UHDE of Germany to setup a plant for the manufacture of Hydrogen Peroxide (H2O2), an environmentally friendly bleaching chemical, with an annual capacity of 12500 tones, near Lahore, Punjab. This project
Packages Pakistan Ltd
Oxypak Limited was a separate company, which was projected to commence production during 1997-98. In 1996, a joint venture agreement was signed with Print care (Ceylon) Limited for the production of flexible packaging in Sri Lanka. This project Packages Limited Lanka (private) limited commenced production in 1998. Packages Limited owns 62% of this company. In 1999-2000 Packages Limited has successfully completed the expansion of the flexible packaging line by installation of new rotogravure printing machine and the expansion of the carton line by a new Lemanic rotogravure inline printing and cutting creasing machine. The machines are in production since December 1999. The Company is at an advanced stage of implementing SAP, an Enterprise Resource Planning System, which through a common database allows the Company to be fully integrated and be live in respect of all its business information. This will enable the Company to serve its customers better. The Rubber Division working under the Research Development & Control Department is also selling its products in the local market as well as selling to the Defense Authorities apart from providing services to its own departments. Another important service department of the Packages Limited is its “Power Plant”. In 1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply of power for its production lines, Packages has also established its own 10 MW power plant in 1991, the cost of which was 180 million rupees. Packages Limited saves a lot of money in this regard. For example, if they get power from WAPDA, then WAPDA charge more than 6 rupees per unit but the expenses of its own production is almost one rupees per unit. In the field of consumer products, Packages Limited has shown tremendous potential and commendable talent. Consumer Product Division provides 12% share of the Packages total sales. The consumer products of the company are “Rose Petal” Tissues, Tulip Tissues and Feminex. The production of Rose Petal was the first introduction of tissue paper industry in Pakistan. Through Packages has introduced so many brands of tissues. Rose Petal is now the market leader of tissue paper industry in Pakistan. Rose Petal has
Packages Pakistan Ltd
more than 75% share of tissue paper industry in Pakistan. Other consumer products are Paper Cups, Paper Plates, Paper Napkins, Paper Hot Cups and Wet tissues of Rose Petal have been introduced in the market in 1992. Beside it many institutional sales are also handled by the consumer product division in Paper cups, paper plates etc. which will be discuss later in section of Consumer Product Division.
(Source: Annual report 2000 & Company’s Brochures)
PACKAGES TODAY
Now Packages Limited is exporting its managerial skills & technical expertise to the third world countries like, • • • • • • • • Indonesia Tanzania Kuwait Saudi Arabia Nigeria Zambia Somalia & Russia.
Packages Limited has also provided technical assistance to Tetra Pak for general packaging in other countries like,
Technical Collaboration:
• • AMCOR Flexible, Australia Stora Enso, Sweden
Joint Venture Partners: Name of Joint Venture
Tetra Pak Pakistan Limited Coates Lorilluex Pakistan Limited Tri-Pack Films Limited Packages Lanka (Private) Limited
Packages limited is also exporting tissues to • • • • • • Iran Bangladesh Sirilanka Indonesia United Arab Emirates & Maldives.
Joint Venture with
Tetra Pak International DIC Asia Pacific Pte Limited Mitsubishi Corporation of Japan Print Care Group of Sri Lanka
Packages started with the work force of 500, and now it has a work force of 3500. In which union and non union employees are included. 3000 workers are from union side and rest of 500 employees is non union, all the office bearers are non union employees. A separate Personnel Department is there, to look after the problems of the workers. Today Packages Limited is considered to be a leader in the Packaging field in Asia. Packages Limited has completed the balancing, modernization, replacement and expansion program, which began in 1994. This has enabled the company to minimize capacity constraints and improve quality to meet local and foreign competition as well as improve its environmental protection facilities.
COMPANY PROFILE
Board of Directors
Asadullah Khawaja Syed Hyder Ali Kamal Afsar Khalid Yacob Kirsten Rausing Markku Juha Pentikainen Mujeeb Rashid Shamim Ahmad Khan Syed Shahid Ali Tariq Iqbal Khan (Chairman) (Managing Director)
Executive Committee
Syed Hyder Ali Mujeeb Rashid Khalid Yacob Chairman Member Member
Audit Committee
Shamim Ahmad Khan Tariq Iqbal Khan Syed Shahid Ali Mujeeb Rashid Adi J. Cawasji Chairman (Non-Executive Director) Member (Non-Executive Director) Member (Non-Executive Director) Member (Director & General Manager) Secretary
Business Strategy Committee
Syed Hyder Ali Mujeeb Rashid Syed Aslam Mehdi Khalid Yacob Chairman Member Member Member
System and Technology Committee
Administrative Sciences, Quaid-e-Azam University, Islamabad 13
Packages Pakistan Ltd
Mujeeb Rashid Khalid Yacob Suleman Javed Chairman Member Member
Bankers
ABN Amro Bank Allied Bank Limited Askari Commercial Bank Limited Bank Al-Habib Limited Citi Bank N.A. Crescent Commercial Bank Limited Deutsche Bank A.G. Faysal Bank Limited Habib Bank Limited Habib Bank A.G. Zurich Muslim Commercial Bank Limited NDLC-IFIC Bank Limited PICIC Commercial Bank Limited Standard Chartered Bank Union Bank Limited
Mission Statement
To be a leader in the markets we serve by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products.
Packages Pakistan Ltd To be a company that continuously enhances its superior technological competence to provide innovative solutions to customer needs. To be a company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance. To be a company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its investors. To be a company that endeavours to set the highest standards in corporate ethics in serving the society.
(Source: www.packages.com.pk)
Packages Pakistan Ltd We at Packages Limited are committed to producing quality products which conform to our customers' requirements and strengthen our position as a quality-managed company. Our pledge is to provide the market with the best quality products at competitive prices through a customer-driven and service- oriented, dynamic management team. To meet this obligation, the company will continue updating skills of its employees by training, acquisition of new technology, and regular re-evaluation of its quality control and assurance systems. Appropriate resources of the company will be directed towards achieving the quality goals through employee's participation.
EH&S POLICY STATEMENT
Packages Limited shall:
1. Minimize its environmental impacts, as is economically and practically possible. 2. Save raw materials including energy and water, and avoid waste. 3. Ensure that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public. 4. Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency. 5. Provide environmental, health and safety training to all employees and other relevant persons to enable them to carry out their duties safely without causing harm to them selves, to other individuals and to the environment. 6. Ensure that all its activities comply with national environmental, health and safety regulations. This policy shall be reviewed as and when required for the betterment of the same.
(source: www.packages.com.pk)
MANAGEMENT & PERSONNEL MANAGEMENT
Regardless of the size or type of the business, any organization’s most important asset is its Human Resources. Human Resources management strives to achieve organizational goals and goals of the employees through effective personnel programs, policies and procedures. Personnel management program varies from organization to organization. If there is good performance of personnel department, then the employees of the company will be motivated and satisfied. The department manages and mobilized the human resources. There are several personnel functions, such as: Job Analysis & Design Recruitment & Selection Performance Appraisal Training & Development Compensation & Health Employee Relations Negotiation With Union Maintaining Discipline Welfare Programs For Employees Grievance Handling Packages Limited possesses a well-organized and systematically operated Personnel
Department. The success and effectiveness of this department’s policy and programs
can be judged from the fact that no major problem has come to surface in the recent years.
There are 3500 workers at Packages Limited at present. In 1957, when it came into production there were no more than 500 workers employed. The retirement age is 58
Packages Pakistan Ltd
years for employees. Personnel (Industrial Relations) Manager heads the Personnel Department. Under his supervision five sections or wings of the Personnel Department work: Legal Wing Personnel Staff Wing Personnel Wing Welfare Wing Establishment Wing
1. LEGAL WING:
In every organization, personnel function includes the legal aspect of human resource management. As long as organizations exist, the disciplinary problems tend to occur. The Legal Wing looks after all the legal aspects and issues concerned with labor and personnel. This wing handles all legal issues of labor. Senior personnel officer heads it. Its main concerns are: Misconduct Civil and Criminal Cases Revenue Cases The Legal Wing, internally as well as externally, and with all other industries deals all legal problems of Packages Limited. It can also hire the services of outside lawyers. It also handles disputes between the labor and management and settles controversial issues. This wing also conducts the case of organization related to Income Tax. Two types of ordinances find their application here: Industrial Relations Ordinance Standard Order Ordinance The Industrial Relations Ordinance gives power to employee against the employer. Usually it helps in solving the disputes, strikes, slow production, elections and other problems of labor unions. The Standard Order Ordinance gives power to employer against the employee and it enables to conduct inquiry according to civil law about leaves, disobey, misconduct, dishonesty, negligence, theft etc. Packages Limited has a
Packages Pakistan Ltd
computerized system. When a complaint is received from any department a "Show Cause Notice" is given and the worker is required to submit his reply within 2 days. If the reply is not received then a letter of inquiry is issued. If the worker fails to plead his case effectively, then, in accordance with the advice of the inquiry committee, the Personnel Manager has the right to terminate the worker's services or take some other action against him.
2. PERSONNEL STAFF WING:
This wing includes the personal staff of the Personnel Manager. The job of the clerk is to carry out all the orders and information given out by the Personnel Manager.
Recruitment Policy:
Packages Limited prefers fresh graduates than experienced once, except for high managerial posts where experience is must. The management believes in developing the employees according to the requirements of the organization.
Employee Grades:
There are different grades for workers. These are: Grade-1 Grade-2 Grade-3 Grade-4 Grade-5 G-1 G-2 G-3 G-4 G-5
Grade G-5 is for supervisors and G-1 is lowest grade in the organization. Packages Limited has four different executives’ grades. These are: Executive-1 Executive-2 Executive-3 Junior Executive E-1 E-2 E-3 J.E
Packages Pakistan Ltd
E-1 is the most senior in executive group and J.E is the most junior in this group. There are three Managers grade in Packages. These are: Manager-1 Manager-2 Manager-3 M-1 M-2 M-3
In this group M-3 is most senior and M-1 is joiner. The retirement age is 58 years and extension is not granted. If the employee is needed he or she is hired on contract basis.
3. PERSONNEL WING:
The personnel wing performs two main functions: 1) It looks after all the sports activities at Packages Limited. 2) It looks after the disputes between the management and the workers if arise. There is a sports hall, cricket ground, a football ground, a hockey ground and a volleyball court at Packages Limited. The Sports Complex comprises of two courts for Squash and Two Badminton courts. In sports complex there are two table tennis tables, Carom Board and Chess. Annual sports are held every year and prizes are distributed to the winners. The Personnel Wing holds all these activities. they
4. WELFARE WING:
The function of Welfare Wing is to look after all the welfare activities and facilities on the factory premises. This wing controls the Fair price shop, the Canteen and all the Messes. The evolution of this wing was the result of the management’s thought that it is a big deal to feed and clean a big factory. It is directly under the Personnel Manager.
Mess:
In Packages Limited, they believe that, the primary conditions for good health are nutritious food which is prepared under the most hygienic conditions in the company and served at highly subsidized rates. There are four types of mess in Packages Limited Lahore:
Packages Pakistan Ltd
VIP’s Mess Officer’s Mess Supervisor’s Mess Worker’s Mess The food is provided at very less cost to employees in these messes. Charges of different messes in Packages Limited from each employee are:
Officer’s Mess is for executive grade employees, supervisor’s Mess is for supervisors, worker’s Mess is for labor class and VIP Mess is for guests and VIPs.
Fair Price Shop:
This wing supervises the Fair Price Shop, from where employees can get all the things of daily use at lower rates than market. All consumers’ products manufactured by Packages Limited are sold over here at 20% discount.
Sanitation Wing:
The job of this wing is to clean the factory area. There are two supervisors and 35 sweepers.
5. ESTABLISHMENT WING:
The Establishment Wing performs the following functions: Maintaining Personnel Records Recruitment Maintaining Personnel Strength Maintaining Leave Record of All Workers Keep Check on all the Staff This wing consists of one senior personnel officer, two assistant personnel officers and, section in charge and 13 timekeepers.
Time Office:
The most important section of the Establishment Wing is the “Time Office”. All employees and workers of the Packages Limited are enrolled here. In the Time Office,
Packages Pakistan Ltd
employees’ records from appointments till retirement are kept, like transfer, promotion, leaves etc. All appointments are made only when there is a new vacancy or need for replacement. There is an “Appointment Register” in which details like name, father’s name, and appointment date, address, department etc. are entered. This register also tells about the appointments made in a year and strength of all the departments.Along with the Appointment Register, there is another register known as “Strength Register”. It shows the number of workers employed. All entries regarding the wages, allowances etc. are kept in it. All new workers are appointed on probation for one year. Three probation reports are given during this period. This wing also maintains the personnel records. The record is being used to, calculate wages and salaries, make work plans for employees and evaluate their performance. There are two types of employees in the organization: Employees who are paid on monthly basis. Employees who are paid on hourly basis. Now in Packages Limited computers make all the records of employees. A card exists, for noting the time spent on job by workers, which are paid on hourly basis. The card notes time of starting and finishing by punching machines. These cards are collected by Production Department, and then they come to Time Office, where they are kept in record. Then the Time Office calculates the wages of hourly workers. In Packages there are three shifts: First Shift Second Shift Third Shift 06.30 a.m. To 03.00 p.m. 02.55 p.m. To 11.25 p.m. 11.20 p.m. To 06.25 a.m.
This Wing also supervises the activities of Gate. For making their employees punctual, the employees who come late are stopped at the gate and they are allowed to enter after the approval of the related divisional manager. There is a gate pass system in Packages
Packages Pakistan Ltd
Limited. People who want to go out-side the organization in duty hours; they have to submit a "Gate Pass" signed by their head of department. The time of leaving the organization and coming back to the organization is written at gate pass. The record goes to Time Office. There is a casual leave of 10 days and medical leave of 16 days on the basis of medical certificate issued by the company's medical officer. The hourly staff is allowed 14 days of annual leave. However, for one-day medical leave no medical certificate is required. Strict disciplinary action is taken if an employee remains absent without prior notification. An advisory note is issued for more than three absents. Packages Limited also gives bonuses for extra work. For each hour of overtime, the hourly wage is doubled. For monthly paid workers there is an attendance register. They can get leaves also. If an employee is absent for more than ten days without leave then he is issued a "Charge Sheet".
RECRUITMENT AND SELECTION CRITERIA:
Packages Limited has designed a sound but easy method of recruitment. When any department needs an employee, it sends its requirement to the Human Resource Department, which in turn advertises the vacancy in the leading newspapers and asks for the qualified people. In case of the posts requiring some years of experience, only interview method is used to select the best candidate.
Recruitment of Workers:
Minimum qualification for the post of the workers is Matriculation 2nd Division with science subjects. The workers should not be more than 21 years old and must be medically fit. These are employed as "Apprentice Trainee". If the performance of the worker is satisfactory during the probation period, he is hired. Normally workers get promotion after two years on the recommendation of their supervisors. This post is not advertised.
Recruitment of Diploma Holders:
Diploma holders in Electrical, Mechanical and Instrument Engineering are also employed. They are given a training of six months. They are employed for supervisory jobs.
Recruitment of Executives:
Job Identification: When any department needs an employee, it sends its requirement
to the Human Resource Department. 1. Recruiting & Hiring: For recruiting and hiring some factors are taken into consideration. These factors are as follow: Nature of the job. Time required filling the vacancy. i. If there is time to fill the vacancy, advertisements are given in the newspapers. ii. If the vacancy has to fill immediately, the Human Resource Department contacts the authorized institutions, universities etc. Budget constraints.
Process:
• The recruiting and hiring process starts from the applications submitted by the degree holders. They provide their CVs along with the applications. These applications and CVs are screened out on the basis of: I. Merit II. Institute III. Experience etc. • After this, approximately 50% of the applicants are selected for the further process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs). Then the H.R. Manager takes a test. This test is based on: I. English comprehension II. Basic mathematics III. Data sufficiency
Packages Pakistan Ltd
IV. IQ V. Some questions about the particular job, for which the applicants have applied. • After taking the test, the top 10, 20 or 30 applicants (according to the job requirement) are chosen for the first interview. At this stage the selection of applicants also depends on the H.R. Manager and the departmental head. Normally 30% of the applicants, who have given the test, are selected for interview. Through telephone calls or letters, the selected applicants are informed about the date and time of the interview. Normally two interviews are taken H.R. Manager and the departmental head take first interview. In this interview they observe, I. Alertness II. Confidence III. Leadership skills IV. Relevant knowledge V. Social acceptance VI. Interests VII. Communication skills VIII. First impression IX. Maturity According to these observational factors rating or grading is made. Normally 5% rating in each factor is acceptable. Then successful candidates are called for final interview. • Final interview is taken by: I. General Manager II. Deputy General Manager III. Human Resource Manager IV. Departmental Head (sometimes) Previous traits or factors are once again examined.
Packages Pakistan Ltd
• After the final interview, the selected applicants are sent for medical test and then the Industrial Relations Manager issues them the appointment letters. Appointed persons are trained for one year, the are given the title “Management Trainee” In the Industrial Marketing, the trainees are called “Sales Executives” and after one they are given the designation of “Assistant Manager Sales”. The trainee is given a brief view (orientation) of the company, various processes, rules & regulations etc. this orientation may be from two weeks to two months. After the orientation program, the participants may ask to submit short report or presentation. After the 6 months training, the trainee goes to H.R. Manager and tells him what he has learnt in this program. Some external courses may be offered not only to the existing employees but also to the new trainees. These courses are held in, I. LUMS II. PIM III. Intek Solution • Recently Packages has jointly entered into a diploma program with LUMS. It is 18 weeks program called Diploma in Business Administration. Two sessions of this program has passed out till now. Performance & appraisal are two sides of a coin. Immediate officer appraises performance. For the appraisal of the performance, there is a Performa, which is filled by immediate officer. This Performa is named as (PPE) Performance Planning & Evaluation. There are seven sections in this form. The particulars of the candidates are written on the top of the form.
Packages Pakistan Ltd
In this section, some standards and targets along with time frame are given. The target given in Packages Limited is known as “SMART”.
S= Specific M= Measure able A= Attainable R= Realistic T= Time frame
Performance Evaluation:
In this section, the net results of the standards & targets given in section # 1 is evaluated or checked. Whether the person can achieve the targets in the required time frame or not.
Competency Dimension:
In this section, different behavioral indicators, in accordance with the performance are checked. These indicators are as follows: Communication Skills Work Organization Result Orientation Team Player Customer Consciousness Self-Confidence Leadership Qualities Development Orientation Strategic Visioning Business Knowledge Critical Reasoning Human resource Development
Performance Evaluation Results:
In this section, there are two parts. Part A Part B Section # 2 score Section # 3 score (%) (%)
Total score of Part A and Part B are calculated here.
Strengths & Limitations:
In this section, the strengths and limitations of the trainee or subordinate is written. This is all up to the immediate officer.
Performance Improvement Plan:
In this section, the immediate manager gives some suggestions and recommendations.
Comments:
The employee/ subordinate and the manager give their comments. Employee comments may be how ha found the work place? Who supported him? And the manager gives the comments according to his observation. In the last they put their signatures with date.
OTHER FACILITIES AND BENEFITS PROVIDED BY PACKAGES LIMITED
Health & Safety:
To safeguard the health and safety of the employees Welfare Wing takes care to the medical facilities provided to employees. In this regard, periodic check ups, inoculations, and family planning programs are arranged. working for this purpose in the factory premises. The health of the employee at the time of recruitment has to be sound and fit persons are employed who are medically examined at the time of appointment. A dispensary with qualified doctors is
Bonus:
All the employees get handsome bonus every year, which varies from grade to grade.
Employees Old Age Benefit:
Administrative Sciences, Quaid-e-Azam University, Islamabad 36
Packages Pakistan Ltd
Packages Limited has two different types of pension schemes. One is for management staff and other is for workers. In management staff pension scheme, Packages contributes 13% and the employee contributes 4.5% of wages. Investment is made in Government securities by this amount. Retirement age is 58 years. The employee gets 100% pension up to his life. In workers pension scheme the Packages contributes 5% of the wages, which ensures a reasonable pension on retirement. After employee’s death, his widow gets 50% of pension amount. After wife death the children can take 20% of pension until they are less than 21 years.
House Rent:
Employees can get house rent at the rate of 30% of their basic salary. More than 50% of the employees own their own house.
Adult Education:
All illiterate workers have the facility of adult education. Qualified teachers teach adult education classes. Workers are paid for the time they spent in the classes as these studies are during the working hours. Books and other educational materials are provided free.
Ali Industrial Technical Institute:
For solving the problems of technical staff for Packages Limited, there is an independent training institute established by the “Ali Group” with the cost of Rs. 5 million. The institution's annual output is 230 students in different fields. In this school preference is given to the children of employees of Packages at the time of admission. Scholarship of Rs. 150 per month is given to all students.
Hajj Scheme:
The Packages Limited sends every year three employees from Grade V and one person from J.E and the above categories for Hajj Pilgrimage on its own expenses. Draws are taken out for this purpose. Any worker who wants to go on Hajj on his own expanses is given one month paid leave.
Personal Cleanliness:
Every worker is provided with a cake of soap each month for personal hygiene. All the workers are given uniforms. The factory provides the washing facilities and maintenance.
Packages Pakistan Ltd
Lockers, change rooms and showers are available to all the employees. Each worker gets two free uniforms and one pair of shoes annually and also has the locker facility.
Overtime:
Over time facility is available for all the workers.
Service Awards:
The Company gives a wall clock to an employee who completes his 20 years of service in Packages Limited. Company also gives a valuable wristwatch to employee who completes 25 years service.
Recreational Facility:
The management also encourages recreational activities. Employees in groups are encouraged to go on excursion trips and the Company pays the transportation and other miscellaneous expenses. Employees can also use the rest house owned by Packages Limited in Murree.
Group Insurance:
Company’s policy is to have its employees safe and sound financially. So Group Insurance facility is available to all employees. account of group insurance differs as follows: WORKERS J.E E-3 E-2 E-1 Above E – 1 Rs. 30,000 Rs. 45,000 Rs. 55,000 Rs. 65,000 Rs. 75,000 Rs. 85,000 The amount paid to employees on
Packages Pakistan Ltd
Among the workers up to Grade V, who shows a good record of attendance throughout the year, is provided monetary rewards and certificates?
Conveyance Allowance:
Conveyance facility is given to the workers in the form of the Conveyance Allowance. Employees are provided adequate allowance for the maintenance of their vehicles. Some employees are enjoying the company's transport facilities. For the outdoor activities employees are provided enough fund to bear their expenses. A beautiful parking facility is also available.
Mosque:
One beautiful mosque is in the factory premises so that everybody can offer his prayers, and I observed that, considerably large number of employees uses this facility.
On job training:
Packages Limited attached a great deal of importance to the training programs of the employees to help them to increase their skills and expertise. This helps to increase the efficiency of the employees.
Library:
There is a library of moderate size in Packages Limited. This library works under the Research, Development & Control Department. Many employees during the lunch break spent their time in it. All Newspapers are available here.
Social Security:
Social Security Scheme is applicable to all the workers of the company who are drawing up to Rs. 1800. In case of injured employees, the company ensures full payment to the worker by paying the balance, in advance in addition to benefits given by the social security.
PART-III
QUALITY STANDARDS AT PACKAGES LIMITED STRATEGIC BUSINESS UNITS PRE-PRESS PLANNING DEPARTMENT PRODUCTION DEPARTMENT PAPER & BOARD MILL PACKAGING DIVISION
• CARTON LINE • FLEXIBLE LINE • CORRUGATED LINE Administrative Sciences, Quaid-e-Azam University, Islamabad 40
Packages Pakistan Ltd
ART DEPARTMENT R.D & C DEPARTMENT COATES LORILLEUX TETRA-PAK PAKISTAN
QUALITY STANDARDS AT PACKAGES LIMITED ISO CERTIFICATION
ISO 14000:
Realizing its responsibility toward environment, Packages started its ambitious comprehensive programme on "Environment, Health and Safety". In the past few years, over US$100 million have been invested on new processes and technology out of which US$20 million were spent exclusively on environmental projects including a chemical recovery plant. Under this program, we are focusing to improve: Energy Conservation Water Management Effluent Management
ISO 9000:
Packages Limited obtained certification for its production facilities in phases. Currently Packages has ISO 9000 certifications for all its production facilities and is working on ISO 9001:2000 revision. The first certification was obtained for Flexible Line in 1995, which to-date has been renewed twice. Certifications for Carton Line and Tissue
Packages Pakistan Ltd
Division were obtained in 1997 and 1998 respectively and have been renewed once. Paper and Board Mill and Corrugation Division were certified in 1999 and are due for renewal in 2003. (Source: www.packages.com.pk)
STRATEGIC BUSINESS UNITS OF PACKAGES LTD
Paper & Board Mill. Packaging Division o Carton Line o Flexible Line and Poly & Paper Conversion o Corrugated Division Consumer Product Division Coates Lorilleux (Ink Factory) Tetra Pak Pakistan
Printing Modes in Packaging Division:
Carton Line (Offset Printing) Flexible Line (Flex graphic & Rotogravure Printing) Corrugated Division (Flex graphic Printing)
PRE-PRESS DEPARTMENT:
Pre-Press is the nerve centre of Packages Limited. This is where concepts and ideas are developed and woven with marketing strategies of our customers to attract the end users of the products produced by our customers. This department has been revolutionized over the last 15 years and compared to the past when most of the work was done by hand; we now have graphic designers and computer artists who make the soft copies of the designs. These halftone images and texts are simultaneously directed from computers to: • • • Image setters; Plate making devices (CDI, Digital System for Flexo); Digital engraving machines
In the Art and Camera Department, we have state-of-the-art computer systems where digital files are produced instead of photographic negatives. For achieving high quality in all of printing methods (Roto, Flexo and Offset), our PrePress Department is equipped with the latest technology in Cylinder, Photo polymer and Plate making equipment which provide excellent support to various Production Departments. Though our Pre-Press Department is equipped with the latest technology, we know that it is the imaginative mind of the conceiver that makes the real difference. Our Pre-press staff is qualified from such fine institutions as National College of Arts, Fine Arts Department of the Punjab University, and Printing & Graphic Art College.
Packages Pakistan Ltd
To keep their knowledge up to date and keep them abreast with the latest technology, we enhance their professional expertise by sending them abroad from time to time for exposure to different printing set-ups and visits to relevant exhibitions.
PRODUCTION DEPARTMENT:
Planning and Production are the most important departments in Packages Limited. Production department controls all the operations under the factory. Planning department is responsible to plan and organize the allocation of jobs to various lines or divisions in a way that their maximum capacity is utilized and that the delivery is given to the customer by the given date. Production Manager is the head of Production department and is responsible for the production function. There is also one Planning Manager, which is under the Production manager. The Production Manager looks after the production while the Planning Manager supervises the Planning Section. The heads of the following departments are directly answerable to Production Manager and they have to present their special problems to him for advice and help: Carton Line Corrugated Division. Flexible Packaging Division Poly & Paper Conversion Department. Art Department. Camera Department. Coating Department. Cutting & Creasing Department. Lamination Department. Folding and Gluing Department. Dispatch Department.
Packages Pakistan Ltd
Quality Control Department. Coates Lorilleux (Ink Factory). The Production Planning and Control unit is also directly under the Production Manager and acts as the brain cell for him. Production Department prepares internal planning of the whole Paper & Board division. It takes into account the total capacity of the machinery, and the manpower. It also arranges the resources to attain maximum utilization. The other goal is to reduce the wastage of resources. The Planning Department acts as a coordinator between the Marketing and Production Departments. This is very important in the sense that if there is no communication between the Marketing and Production Departments, a lot of confusion will be created.
Production Procedure:
The sales staff is in direct touch with the customers. After the business has been finalized, an Internal Sales Order (ISO) is sent direct to the Production, Planning and Control Department for checking and planning out the production schedule. The Planning Officer and his staff communicate and correspond directly with sales staff. Sales staff also deals with Art Department in the initial stages of the business negotiations. Art Department prepares comprehensive, color schemes and alternate suggestions for the approval for the customer. The direct link of the Art Department ceases after the customer has approved the comprehensive. First of all the sales executive gives the customer design and made job reference to the Planning Department where Planning Assistant for Art & Camera sends the job to Art Department for finalizing the ultimate shape of the product’s design. They also prepare mechanical for the Offset and Flexographic jobs. The job then moves to Camera department, where the staff prepares the printing negatives followed by Production Department who prepare the printing plates. The plates will either go to proof press or for mass production to offset presses. The order received by the customer to Marketing Department may be: New job Amended old job
Packages Pakistan Ltd
Repeating job In order to develop a new job, to create a new product or to give special suggestions to the customer, sales staff takes help from Development Manager. Development Manger is in touch with all the facilities available at the factory and develops the projects until it is fit for mass production. The new job is first sent to Art and Camera Department for the Art & design to be printed. In case of repeat order, the Production Department will receive the ISO with the sample and the job will be sent to the Planning Department. Planning Department issues a Job Card, as soon as the Job Card is made out, Paper & Board stores arrange material. The immediate requirement is indicated in the Job Card, which has to be available in stocks, while the long-range requirements are stocked up. Production Manager has to foresee the future requirements. In case of new development, special materials are to be ordered. When substantial orders are expected in a particular line then raw materials will have to be ordered. For example, if there is trend of packing polyethylene bags then polyethylene Granules will have to be bought ahead of time. After Offset Department and Poly & Paper Conversion Department (PC) the job run through Cutting and Creasing, Folding and Gluing and is sent out through Dispatch Department. The jobs emanating from Paper Converting & Offset Department go directly to the Dispatch Department. One important function of the Dispatch Department is to prepare Dispatch Notes for the goods sent out whether by trucks or by railway. (Source: www.packages.com.pk)
Paper & Paper Board
Process:
Our products are tested for high performance in terms of strength, stiffness, gloss and machine-ability. Packages Limited is among the first
Packages Pakistan Ltd
companies in the world to use environment friendly process of manufacturing paper & paper board through a mixture of wheat straw, cotton linter, recycled pulp and wood pulp.
Wood Free Paper:
We specialize in making different kinds of paper which Includes high gloss writing paper, poster paper, fluting paper and liner for shipping cartons.
Food Grade Board:
Most common board varieties include Duplex Board, Bleached Board, Food Grade board and Card Board. A specialized liquid packaging board is also produced in our Paper & Board Mill to cater to the need of customers who manufacture and supply aseptic packaging for milk, cream, oil, fruit juices and other sensitive food products.
CARTON LINE:
This is the largest printing section of Packages Limited. This department has the largest share in the total Packages Limited sales, which is about 55%. There are 12 printing machines in this section, which are used for printing on duplex board. There are two Varnishing machines and one laminator machine. This printing facility is available from two to six colors. These machines use oil-based ink. Normally they print Cigarettes cartons, Biscuits, Shoes boxes, tissue cartons and Tea boxes.
PRINTING MODE:
In the Carton Line the printing Mode is offset. Ink Plate Blanket
Sheet Offset printing is the art of printing from a flat surface. In this method, first the Plate (cylinder) takes ink and coats on the Blanket (cylinder) but the reflection is reverse (off) on the Blanket. Further sheet (white duplex board) passes in between two cylinders, Blanket and Impression. Now on the sheet printing is straight (set). Each Offset machine has different cylinders i.e., six-color machine has six cylinders, and five-color machine has five cylinders and so on. Each cylinder is used for the printing of a specific color. The cylinder takes the ink from the ink pan and prints it on the paperboard running on the other cylinder. The paper goes forward and then another cylinder prints another color and so on, until the sheet is printed according to the right format. The Duplex board is used in this form of printing. The weight of board is 240 to 490 grams.
PROCESS FLOW:
Administrative Sciences, Quaid-e-Azam University, Islamabad 49
Packages Pakistan Ltd
In Carton Lime the sheets for printing, come from Paper & Board Mill. These sheets are first coated so as printing can be done. In Carton Line, Offset printing is done. As I have earlier discussed there are twelve machines for the purpose of printing. If the requirement of job is six colored, it is sent to the six-colored printing machine. When the sheets have printed, these are sent to another section where cutting & creasing is done. After the cutting and creasing, the flaps or unit cartons are separated from the main sheet After this if the customer wants these flaps to be folded & glued. Then these flaps are sent to folding & gluing section. Otherwise bundles are made and sent to the dispatch section. OFFSET PROOF: In Carton Line there is a section known as Offset Proof. In section, the sample (proof) of the required job is taken before the bulk production. This is done just to verify that after printing and cutting & creasing the flaps or unit cartons are same as required be the customer. CONSTRUCTION OF CARTONS: Straight Tuck-in: e.g. Magic Depoxi Steel carton Reverse Tuck-in: same as Straight Tuck-in but reverse in flaps. Crash Bottom: Tuck-in on one side and on the other side crash bottom. 4-Point Glued: e.g. Wall’s Solo. 6-Point glued: e.g. Packs of Nirala Sweets. Quick Lock Tuck-in Top: Tuck-in on one side and Crash Bottom on other side. Full Seal: e.g. Rafhan’s custered glued from both side.
Packages Pakistan Ltd
Hinglet Carton: e.g. cigarette cartons. 4-Point Glued and Tuck-in Top: e.g. packs of Ding Dong Bubblegum. Top & Bottom: e.g. shoes cartons i. Self-Lock Carton ii. Glued Carton iii. Stitched Carton
EQUIPMENT:
One 1-color printing machine HEIDEL BERG Six 2-color printing machines PLANETA ULTRA MAN V
Three 5-color printing machines ROLAND 800 ULTRA MAN V GS
One 6-color printing machines ULTRA MAN VII-G TWO LACQUE
MAJOR CLIENTS:
Lever Brothers Nestle Pakistan Tobacco Co. Procter & Gamble
CONSUMER AREA:
Tea Cartons Detergents Soaps Shoe Cartons Food Cartons Cigarette Industry Biscuit Match Industry
LEMANIC 82H MACHINE:
This machine can work equal to five departments. This is the latest machine, not only in Packages but also in Pakistan for the finest printing. Printing mode used in LEMANIC is rotogravure. This machine comes under the Carton Line but the difference is this, printing method is rotogravure and instead of sheets, complete reel is used. Process Flow: Duplex board Reel Reel Stand Festooning
DESCRIPTION:
The process starts from the reel stand unit. White duplex board reel is attached to the reel stand. From the reel stand the reel automatically starts passing through the next section. In this section at a time two reels are connected to reel stand. One reel starts processing and other one is on stand by. The joint of these reels may be automatic or manual. The process of one is completed in 20 minutes. In the next unit, Festooning, mainly two works are done: It makes the alignment of the reel It makes the paper tight according to the given speed. The next unit, in feed, feeds the board to the next unit for further process, which is printing. There are six printing units; the necessary printing units are used according to requirement of job. The printing method is Rotogravure. Seventh unit is for varnishing. Two types of varnishing is done: Water Base varnishing. Solvent Base varnishing The purpose of varnishing is to protect the board from water and oil effects and also to make shine on it. In the next unit, quality of printing is checked. The machine is totally computerized and without any manual work it can check the quality and if there is any deviation, it can warn the supervisor. In the section unit, cutting & creasing is done. Dyes are used for this purpose and machine works automatically. The operator instructs this unit, and after a certain limit the bundles of flaps are collected by the machine and are sent to the last section. In the last unit dispatching is done manually.
Flexographic line:
On our flexographic line, up to eight colours flexographic printing can be done on paper, poly-coated paper and films. We have the first ever gearless press in the country which has the ability to print real life images on materials like Polyethylene, OPP, Special paper and Polyester. With the addition of Video Mounter System, the printing stereos can be mounted with one micron dot accuracy, which virtually eliminates the mis-registration from the print.
Rotogravure Printing:
Sophisticated quality packaging with computerized controls, makes rotogravure printing an extremely attractive option. With the help of latest technology, including online web cams and auto registration, customers can get up to eight colors of very high quality printing results. Our rotogravure printing section also has the latest in- house cylinder making and engraving facilities. Commonly used printing substrates on our rotogravures are: PET, BOPP, Metallized OPP, Pearlised OPP, Paper and PVC. Rotogravure is particularly suited to food packaging where colourful package designs and preservation of food quality are important considerations.
Lamination:
Packages Limited has both solvent base and solvent less laminators. With the help of our modern machines even the most complex structures of three to four laminations can be done on our lamination facilities. Equipped with Italian technology and computerized control, we can laminate BOPP, Polyester, Al foil, Met OPP, Met PET, .E. paper as faster as 250 m/min with continuous production due to auto splicing. Automatic viscosity control system ensures consistent quality. R&D center at Packages Limited helps customers develop cost effective laminates to suit their needs.
Extrusion:
Packages have our own mono- and multi-layer extrusion facility that can extrude polyethylene of different grades and colours. The Canadian technology with computerised control and monitoring of each layer on our 3 and 5 layer extrusion line enables us to produce high output to meet our customers' demands and new market trends as well. We extrude a number of specialized films which includes oil, ghee, detergent and food films. These specialized films are known for their strength and high barrier properties. We also have the on-line slitting option on our line which makes our system more efficient.
Bag & Sleeve making:
Bag making is an integral part of our Flexible Line. We have the capability to provide the following variety bag constructions: Side Seal, Double side seal, Bottom Seal, Three Side Seal, Bottom Gusset Bags and Side Gusset Bags. We have automated sleeve making machines on which we make shrinkable PVC sleeves.
CORRUGATED DIVISION
For large-scale packaging, Packages Limited has been manufacturing “Corrugated Cartons” since 1971. These cartons are produced in different sizes and are used for transporting consumer products from manufacturer to retail outlets. The share of Corrugated Department in Packages Limited total sales is almost 20%, which is second after the Carton Line. Corrugated cartons are of great value for the export of fresh fruits, garments and shoes. A wide variety of gums tapes for sealing corrugated cartons are also manufactured The production process was completed in two halls. Paper needed for this purpose was also prepared within the factory premises at the Paper & Board Mill. Then this paper was first processed through the corrugated machine, which transforms the paper into single wall and double wall as required and mentioned earlier. Afterwards, the corrugated are processed through the Flexo machine where they are shaped according to the requirement of the customer, for example, into a rectangular or square shape. A gluing unit is also attached with the Flexo machine, which sticks the cartons on specific places. Some time stitching is required which is done at another machine.
Packages Pakistan Ltd
MACHINE FOR MAKING CORRUWALL SHEETS: The machine used for making or preparing Cornwall sheets, is named as UCHIDA (it is the company name). It has imported from Germany. It has six units. These six units are as follow: 1st Unit (C Flute) 2nd Unit (B Flute) 3rd Unit (Double Baker/Facer) Heating Section Slitter & Scorer Section Auto Down Slugger Section TYPES OF CORRUGATED SHEETS: > Single Wall • > C – flute • > B – flute Double Wall • > B+C flute Single Facer
PRINTING MODE:
Flexographic printing
•
> E – flute
MACHINES FOR PRINTING:
There are three machines for the purpose of printing. • • Two 2 color machines One 3 color machine
CAPACITY OF PRINTING MACHINE:
The printing machines used in Corrugated Division have the capacity of printing 250 Cornwall cartons per minute.
CONSTRUCTION OF CONTAINERS:
Regulated Slotted Containers (RSC) Glued Containers Stitched Containers DI – Cut Containers
MAJOR CONSUMER AREAS:
Sports Product Textile Industry Food & Beverages Yarn and Poly Products Match Industry Fruit Cartons
MAJOR CLIENTS:
Pepsi Cola, Pakistan Mineral Water Pakistan Tobacco Company Lever Brothers Nestle Rupali Group Murree Brewery Kunjah Textile Mills
SOME OTHER DEPARTMENTS INVOLVED IN PRODUCTION
Coating Department:
When paper & board is manufactured in Paper & Board Mill, its both surfaces are coarse. For printing purposes, it must have smooth finish. For smooth finish, it is send to the Coating Department, where it is processed to a smooth, shining, extra white upper layer or both sides. Color coating of paper and board is also available.
Cutting & Creasing Department (CC):
After printing, job comes in the Cutting & Creasing Department. As the name implies, this department cuts or creases as the requirement of the job. For this purpose, special dyes are used which are made for the specific job. It has very sharp cutting blades that do the cutting. The die is attached to a machine called “CUTTING & CREASING” machine.
Lamination Department:
This department has two machines, which laminates the paper on single side or double side. This lamination process is started after printing, as the customer requirements.
Folding & Gluing Department (FG):
After cutting & creasing, the job comes to Folding and Gluing Department. The machine folds and glues the sides of the sheet to form cartons/boxes. Care is taken that the folds are correct and the sharp and right amount of the glue is applied where required. Last examination of quality control is conducted in this department. From this department, the job is packed in boxes and sent to dispatch department.
Dispatch Department:
This department is responsible for the dispatch of finished goods to the customer and also takes deliveries of products to Packages Limited from the trucks or railway station. The various functions performed by Dispatch Department are like that they receive finished
Packages Pakistan Ltd
goods in this department, they record these goods, they arrange the goods according to the delivery schedule given in the job card, they also have to arrange trucks from trucking companies for dispatching these goods. Also they have to load and prepared dispatch notes. They have to keep the record of dispatch figures with receipt records.
Quality Control Department:
This department examines the quality of products producing by Production Department. They make tests about the quality of printing, grammage of paper or board and compare them with customer specifications and prepare reports about results.
Technical Department:
This department is responsible for the repair and maintenance of machines and construction of building and roads in the factory. There are 130 employees in this department. It works in two shifts. In case of emergency third shift is carried out. It provides the necessary spare parts and machinery to different departments. Technical Department is responsible for making tools and spare parts. Some time it works for other industries. It normally accepts the orders of Roll Grinders. These orders are accepted only on cash basis.
RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT
To keep up with new demands Packages Limited has a Research, Development and Control Department. This Department is considered as one of the most important department. The Research, Development & Control Department works in close collaboration with the Production Department. It helps the Production Department to maintain a standard of the products being produced. All the new materials are tested according to the certain specifications. It also has a lot of interaction with the Marketing Department. Research, Development and Control Department has well equipped laboratories and pilot machines, which are used to test various chemicals, raw materials and machines. It enables Packages Limited to provide better quality and latest packaging to the consumer industry enabling it to introduce new product lines and develop new materials. The Research development and Control Department has three major areas for his research: Research Development Control
1. Research:
This section is directly answerable to the Production Manager. In Research, work is done with the new ideas, the experiment is divided into parts and on each part attention is focused and conclusions or suggestions are given. Packages Limited, tries to get as many information and technology which is possible and beneficial to the organization. All such information is collected for research.
Packages Pakistan Ltd
Development is a continuous process in any organization. A lot of development is the result of feasibility studies, study of new production methods and new products. Packages Limited has a paper & Board Mill, so it uses largest number of chemicals. The "Environment Protection Agency" has set some standards for reducing pollution. The Research Development & Control Department developed new way of reducing pollution and always tries to meet EPA standards.
3. Control:
Packages Limited Research, Development and Control Department ensure the quality standards off all the products produced in the factory. Quality is synonymous with Packages Limited. Every package made by Packages Limited guarantees the use of quality materials and processing. This is all due to the strict Quality Control standards, observed at every stage of the production, from raw materials to dispatch Department. The Research Development and Control Department makes stringent requirements on quality control, which help in working consistently towards attaining better results for customers. The incoming raw materials and end products leaving the factory are constantly checked to make sure the items produced meet the expected standards. To ensure constant quality and improvement this department managed by qualified scientists.
COATES LORILLEUX (INK FACTORY)
To keep up the trend of self-sufficiency, Packages limited has set up its own Ink Factory in 1957. Initially, Packages Limited used to import all the ink used in various printing process. But due to increase in demand and to keep quality control, Packages Limited has set up its own Ink Factory. This factory is very economical and also supplies good inks for printing to Packages Limited. Raw materials for inks are purchased but inks are prepared in its ink factory. This factory has the following sections. There are three sections of ink factory:
1) Store:
This section is responsible for the arranging raw material for inks.
2) Laboratory:
This section formulates different kinds of ink and develops new shapes of ink. It is responsible for the development of new shades of ink and formulates different kinds of ink.
3) PRODUCTION:
With the help of Planning Department, this section is responsible to make ink for the specific jobs. Ink Factory not only fulfills its own requirement but also sells printing ink in the market. With the increase in demand and popularity of "ROSE" brand ink, Packages Limited has made an Ink Division and they intend to develop it into a separate independent department. In 1993, the company agreed to form a joint venture with equity participation from “COATES LORILLEUX", world’s second largest printing ink manufacturer to produce ink for Packages Limited and the general market. Packages Limited own ink manufacturing facilities now transferred to the new company, "COATES LORILLEUX PAKISTAN LIMITED" in which Packages Limited have 55% Ownership.
TETRA PAK
Tetra Pak was established in 1982 as a joint venture between Packages Limited and Tetra Pak Development S.A. of Lausanne, Switzerland. The shares of Tetra Pak Pakistan are distributed as follow: 49% Shares Owned By Swedish Group. 45% Shares Owned By Packages Limited. 6% Shares Owned By Syed Babar Ali.
Tetra Pak produces packaging material in premises leased from Packages Limited. The Company operates from its office in Gulberg. That office is responsible for the Management, Marketing, Sales, and Technical Services. The head office of Tetra Pak is in Switzerland. A factory produces packaging material for Tetra Standard Aseptic and Tetra Brik Aseptic. Tetra Pak has a growth rate of 15%. The Production Plant works at Packages Limited. This building is acquired from Packages Limited on lease. There are 130 employees in the factory. Tetra Pack factory works in three shifts. Tetra Pak deals with the packaging and sale of liquid foods such as milk, juices etc. The Tetra Packing milk can stay fresh up to three months without any refrigeration. The factory started its production in January 1983 with the capacity of 16 million packs per year. But now it has a maximum production capacity of 900 million packs per year. In the year 1993 Tetra Pak sold 750 millions packs. The material used in the production of tetra packing is: Paper Aluminum Plastic Coating Wax
The Paper, which is used in tetra packing, is manufactured at Packages Limited. The Aluminum Foil is imported. Now in Tetra Pak daily production is 200,000 meters.
MARKETING DEPARTMENT
We are living in an age of Marketing. It’s a famous adage; “You don't sell what you make rather you make what you can sell”. Today in any organization, Marketing Department is of paramount importance. Because it plays a link between the consumer and the manufacturer. The function of the Marketing Department is to ensure that consumers receive what they need. If marketing department works effectively and efficiently, the whole organization is on a smooth run. The Marketing Department plays a key role in the operations of the organization. The Marketing Department of the Packages Limited is headed by the Marketing Manager who is responsible for all the marketing operations in all three offices in Lahore, Karachi & Islamabad. Packages Limited has a very effective Marketing Department, which is acting a vital role in the working of the company. This department is responsible for the sale of industrial & consumer products. Planning Division of the Production Department works closely with the Marketing Department to ensure the meeting of established targets. Packages Limited has divided into the four regions i.e. Lahore, Karachi, Multan and Islamabad. Area Marketing Managers, who are third in the line of authority, direct under the Deputy Marketing Manager, are the heads of these regions. Marketing Manager also looks after the Consumer Products Division. Each region is responsible for the sales of its area. A team assists all Area Marketing Managers, consisting of Regional Sales Managers, Assistant Sales Manger and Sales executives. There are two Regional Sales Managers under the Area Marketing Manager. One for industrial sales and one for the consumer products. Then there are Regional Sales Managers and Sales Executives. The Deputy General Manager who is also among the Board of Directors of Packages Limited is often consulted by the Marketing Manager for important managerial decisions concerning
Packages Pakistan Ltd
Marketing Department. The job of Area Marketing Manager is just like a Supervisor. He Checks the performance of each officer. He, some times, visits the customers and asks them whether they are satisfied with the services of the officer concerned. The Regional Sales Manager acts as a coordinator between the Sales Executives and the Area Manager. Each Sales Executive is allocated a certain number of customers. The respective Executive will deal with these customers and solve their problems. In case of some trouble, the Area Manager does involve and tries to settle things. His advice is especially taken while developing, launching and pricing of new products or amending the prices of existing products and so on. There are two divisions of marketing department in Packages Limited: The Industrial Marketing Division The Consumer Product Division The performance of marketing activities of the Company has increased due to this segmentation of division. Following are the important factors that differ between these two divisions: Distribution channels are different. Target market is different. They both have their own competitors. Marketing policies are different for each division.
1) INDUSTRIAL PRODUCTS DIVISION:
The industrial marketing has emerged to be a strong tool to enhance the sales of those companies making products that are used in the production of other goods and services. Industrial Marketing is the need of the manufacturing firms. In this regard the Industrial Marketing Division of the Packages Limited assumes the key importance. Industrial Product Division is responsible for the industrial goods. This division is concerned with the packaging needs of various industries. The industrial products, which it markets, are
Packages Pakistan Ltd
numerous. The major products come in the category of packaging products. These include: Products available in Offset Printing Products available in Flexo graphic Printing Products available in Rotogravure Printing Corrugated Products
Packages Limited produces good quality packaging material. Packages Limited has 25% market share in packaging industry; as a result they are the single largest packaging unit of Pakistan. There are lots of small manufacturers, which are much cheaper, but their quality is not of that par but due to low prices they are there. Major competitors are: Almas (Pvt.) Limited Karachi Pak Paper Products Pap Board Printers Rawalpindi Metatax Press Karachi Security Paper Industrial Packaging Karachi National Packages Karachi Friends Packages Karachi Uni Flex Printing Services Karachi Rainbow Packages Limited Lahore Orient Board (Pvt.) Limited Toufique printers Lahore
Market Share Of Packages Limited In Packaging Industry:
Administrative Sciences, Quaid-e-Azam University, Islamabad 74
Packages Pakistan Ltd
Market Share Of Packages Limited In 2000 In Packaging Industry (Percentage) Packages Limited 25% Others 75%
8 0 6 % 0 4 % 0 2 % 0 0 % % Packages' Market Share
Package s Limited
Oth ers
But there is no any competitor, who has more than 10% market share. The Packages Limited has an edge over competitors in different factors: Packages has own Paper & Board Mill Modern Machines & equipment Printing quality of products Provides help in designing Almost 91% of the sales of Packages Limited comprise of Industrial Products. Packages Limited is the marketing leader of the packaging industry of Pakistan. Packages Limited produces the wide range of packaging material in the country. It manufactures materials, which cover paper & board, corrugated board, plastic packing. Packages limited are as follows: Cigarette Industry Tea Industry The major industries whose packaging requirements are being fulfilled by
Packages Pakistan Ltd
Shoe Industry Match Boxes Industry Toffee and Candy Industry Food Industry Soaps & Detergents Industry Biscuit Industry Pharmaceutical Industry Chemical Industry Tooth Paste Industry Garments Industry
Marketing Philosophy:
The marketing philosophy of Packages Limited in general and Industrial products in particular, moves around the policy to provide strength in, Service Quality Dependability In simple words, providing good services to the customers. Also along with good quality and services. The dependability means, the customers should have trust in Packages. By making strength in quality, goods and services and being trustworthy, gaining the market share is the philosophy of Packages Limited. Another marketing philosophy is not only to satisfy the existing customers but also by doing this to attract new customers.
Methods of Marketing:
Face-to-face meetings Telemarketing Through E-mail Through Fax Group meetings
Prospecting for New customer:
According to my discussion with the Senior Sales Manager, Ms. Humaira Shazia, that how they do prospecting for new customers. She told that first we see our production lines i.e. Carton Line Flexible Line Corrugated division
In which division or line we need new customers and the existing customers are not fulfilling our requirements of that particular line. Then we select our target market. The selection of target market may be through market surveys. From that target market we select the potential customers, means the customers with which we can do business. Then these prospected customers are sent free counter samples. The customers use these samples and if the samples are matched with their standards. They contact with the Industrial Marketing Department for further negotiations. For their standards and satisfaction, the strength in quality, services and trustworthy are the base.
Functions of Sales Executive:
1. Customers’ identification 2. Customers’ services
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3. Customers’ satisfaction 4. Development new jobs 5. Having an eye on competitors’ activities 6. Market knowledge of 7. Collection payments 8. Maintenance time 9. Training development trainees internees. of and of of
Top Three Customers of Industrial Marketing Division:
1. Pakistan Tobacco company PTC 2. Lever Brothers (Pvt) Limited 3. Nestle Milkpak Limited
Type of Orders:
Packages Limited receives two types of orders from the customer: New Orders Repeated Order For new orders, Sales Executive will go to the new client and will try to sell their products to him. The Packages Limited has a limitation, that it can not take small orders from customers because the factory over head costs are too much which can not be justified in small orders of less monetary value. If the customer agrees to buy from Packages Limited, then it is the job of the Sales Executive to coordinate with the customer. First priority is to listen to the ideas of new customer and if they are feasible then, work is started. If the
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customer's ideas are not worth of use, then the Sales Executives use their own expertise and design a suitable package for the customer with the help of Art Department. If the customers are satisfied with the quality, delivery and price of the packaging material provided by Packages, then they will make repeat purchases. Normally companies consult themselves with Sales Executives by making a Phone call or by sending a fax. When Sales Executive will get order again from his client he will again repeat process of issuance of ISO.
WORKING OF THE INDUSTRIAL MARKETING DEPARTMENT:
The basic job of Marketing Department is to make sales and to satisfy the customer's needs.
Allocation Of Customers:
At Packages Limited every sales Executive and Sales Managers are allocated customers and they are held responsible for dealing with them. Every Sales Executive has a complete record of his customers and pays regular visits thus remaining in regular contact with them. On average a Sales Executive has to deal with more than 10 customers.
Daily Meeting:
In the Marketing Department, a meeting of all the Sales Managers and Executives is held every morning. The Area Marketing Manager heads this meeting. Each Sales Officer explains the current situation of his customers and the development in the new prospects, if any. The Sales Officers also inform the Area Marketing Manager about what they did the previous day. They are then guided as to what should do, and are assigned certain duties regarding the mode of action
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they are to adopt. Sales people also provide current information about market. The sales people are also responsible for getting the payment from the customers. In the daily morning meeting, they have to show that how much payment they have got from their customers and how much amount is still outstanding with their customers. The Area Marketing Manager sees that which sales person is lagging behind in receiving the payments and then guides him to speed up his efforts for getting the payments from the customers. In this morning meeting, the daily dispatch report is also discussed. The Area Marketing Manager discusses with each Sales person, the status of the order delivery of his customers. If the orders are not executing according to the schedule given by the planning department, then the Area Marketing Manager, himself contacts with the planning department and asks them to speed up the delivery process of the late orders.
Developing New Customers:
Every organization aims to satisfy its present customer and at the same time tries to increase the number of its current customers. But with Packages Limited the task is slightly easier, since it is the largest packaging concern in Pakistan and off course the most reputed one. In order to find out the potential customers, it is the duty of every Sales person to remain well informed about the market and grab every opportunity as and when it arises if it seems profitable. Hence, the sales persons are required to carry out an active search for potential customers and have to make sure that they miss no opportunity to strike a deal that can be profitable to the organization. As a matter of fact, it is the job of sales force
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to track new opportunities for the organization. Although it is not an easy task, but the good repute of Packages Limited about its quality oriented production serves as a promotional tool and helps the Sales staff. Sometimes, some prospective customers directly contact the organization. The reason is the highly strong market position of Packages Limited.
Procedure for getting a new order from the customer:
Like any marketing department, the marketing people here too are supposed to attract the new customers and get the business from them. Fortunately, the Packages Limited has very loyal customers, who have been purchasing from them for a long time. So we can say that, more or less, the Packages Limited has fixed number of customers. That’s why, except Area Marketing Manager, every sales person has assigned certain number of customers. The sales Executive has to make all the dealings with his allotted customers. But this does not mean that in Packages Limited, attention is not given to the new customers. The point is that the old and loyal customers have become the permanent customers of the company. The other thing is that the company is operating at full capacity in case of carton and corrugated divisions. Only in flexible line they are below their capacity. So, mostly, they focus their attention to attract the customers in the flexible line. If a new customer comes, then he may be assigned to any sales Executive. Now there is a certain procedure through which the new order from either a new customer or the old customer is executed and final product is dispatched to the customer. The flow chart of this process is given on the next page.
DESCRIPTION:
Process flow in Industrial Marketing Department is as follows: ♦ First of all there is contact between the customer and the sales department. The contact may be in two ways: Customer contacts the marketing department Sales executive contacts the customer.
♦ Now if the customer has any idea, he gives “specification” about the required product i.e. size, material, design etc. and also tells about the approximate order.
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♦ The marketing department sends the specification to the Art Department to convert the idea into a shape. If the customer has no idea then it is the work of Art Department to make a design. ♦ The Art Department makes blank sample to the concerned sales executive. The sales executive also gets pre-costing report and then sends the blank sample along with quotation to the customer. The blank sample is sent to the customer to get approval of four things: • • • • Size Material used Structure of packaging Construction
At the same time, the quotation is also given to the customer. On quotation, the following information is given: The price of the product according to the size and quantity Terms of payment The expected lead time The material to be used to manufacture the product The printing mode
Then the customer approves the blank sample and also agrees to the quotation. Then the marketing department sends a color print to the customer for approval of:
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Text on the packaging Space coverage Color combinations Color usage After the approval of color print, a sample proof is sent to the customer. This sample proof is an original product according to the requirement of customer. Till now the main work was done by Art Department. After the approval of sample proof, the marketing department issues Internal Sale Order (ISO), One copy of ISO is sent to Planning Department for the confirmation of: ISO number Product quality Product quantity Date of issuance Time duration Printing mode Dispatch date The planning department confirms the ISO, and bulk Production starts. After getting the confirmation from planning department, the marketing department sends order confirmation to the customer and by the process between the customer and the marketing department completes.
Documentation flow in Industrial Products Division
From
Sales Pre costing Sales Customer Sales Sales Planning Planning Sales
Production
Document to
Information Pre costing report Quotation Purchase Order Order confirmation ISO ISO Confirmation Job Card ISO amendment Transfer note
Production
Sales executive
Customer Sales Customer Planning Sales
Sales & production
DESCRIPTION:
Before the documentation flow, the customer has made the contact with the Industrial Marketing Department. The sales manager/executive gets information from the customer and decides whether the order can be done or not. If it can be done, then the pre-costing department prepares the pre-costing report and sends to executive. From this pre-costing report the sales executive fills a quotation form and sends to the customers. From this quotation, the customer gives, the purchase order, if he is agreed with the quotation. Now if the purchase order is according to the standards and requirements of Packages, the sales executive sends the order confirmation to the customer. Now the sales/industrial marketing department issues an Internal Sale Order (ISO). One copy is sent to the planning department. The planning department issues the ISO confirmation slip to the Industrial Marketing Department. Then the planning department issues Job Card. One copy is sent to the production department and the other one is sent to marketing department. Now if there is any amendment in the purchase order, required by the customer, the I.M.Department makes an amendment form and sends to the planning department so as before production this amendment can be made. After the completion of job, a transfer note is made by the production, which is sent to Dispatch section.
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The Dispatch Section issues the dispatch note to the marketing department to confirm the completion of job. The Account Department issues invoices, means debit and credit notes to the customer. The receipt of payments from the customer is the duty of marketing department.
By this process the documentation flow of Industrial Marketing Department has completed.
Repeat Orders:
Packages Limited, as a policy matter always prefers repeat sales. It does not look forward very eagerly to one time order. Most of the business is of repeated nature. Thus getting repeat orders is also one of the important jobs of a Sales Officer. A repeat order can be taken through a telephone call a written letter or a visit. In repeat orders, it is not necessary that the whole process discussed above be repeated in the same sequence. As in repeat orders, the customer’s requirements are already with the company, so customer only places his order and give the order confirmation, and the marketing department will issue the ISO and the remaining process will be same as discussed earlier. The steps before ISO issuance are skipped in this case. But if the customer wants some changes in the previous order, then the whole process will have to be repeated.
Packing material manufactured in Packaging Division
Corrugated cartons Cartons produced in variety of sizes, are used for transporting consumer products from manufacturers retail outlets. Mostly corrugated cartons are used for export of fresh fruit, garments, shoes and textiles. Roto, Flexo, offset, water base, heat resistant, for printing of polythene, OPP. PVC, polyester, solvent base ink, lacquers, additives. A wide variety of gum tapes for sealing corrugated cartons. For Snacks, Tea, Shampoo Paper wrappers/ laminate wrappers for toffee, candy, soap, ice cream, bubble gum etc. Labels For Bottles/Inks Tea bags, printed poly bags, poly coated bags Shrink wrap poly film, syringe packing film
Printing Inks
Gum Tapes
Laminate Bags Wrappers
Labels Bags Films
Miscellaneous Sachet for shampoo, coffee etc, cone for ice cream, stands alone pouches for PVC sleeves, and packages for every purpose.
Pricing Policy for Industrial Products:
Since Packages Limited industrial products vary in nature to a great extent, so there is no fixed price for any product. In Packages, prices charged are quite high due to their good quality and standard. The Marketing Department determines prices for each of the products separately. There are some standards regarding prices of different packaging designs, but they vary according to the factors listed below: Material used for the package Printing on the package Size of the package Quantity ordered Prospects of repeat sales Art work charges Terms of agreement Number of color to be used in printing Time of completion
Price Determination:
The prices are usually negotiated between the buyer and the sales personnel. The Sales Executives get the estimates of the costs to be incurred on the customer’s order, from the Costing Section, a part of the Marketing department. The business with the customer is also kept in mind, i.e. whether he is a new customer or the permanent one of the company. The prices for the industrial products are determined on the "Cost Plus PROFIT" basis, i.e.
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In order to determine the price to be charged for an order the company simply adds desired profit to its estimated cost of production. In price determination the first aim is to cover the cost. After this a reasonable amount is charged in the term of profit. There are certain factors, which affect this profit margin.
Distribution Policy for Products:
Packages Limited, being basically industrial products manufacturing concern, its distribution system consists of direct selling from producer (manufacturer) to the consumer (the company ordering for the packaging material). No middleman is involved. Company's sales force either directly goes to the final customer or gets order from them or the customer himself contacts with the company. The company believes that direct marketing is quite cheap for industrial goods. The reason, which they quote, is that we have enough sales force all over the country and which can cover the industry more economically. Normally new orders are obtained by the Sales Executives. Packages Limited does not have any distribution or whole sellers in its distribution network. The company advises its customers to take their packaging material from the Factory Premises. Either the buyer's transport comes to the premises or the company arranges to send the products to the customer. In any case no freight charges are borne by the Packages Limited.
CONSUMER PRODUCT DIVISION (CPD)
Since the inception of Packages Limited, it dealt only with industrial goods. In 1981, company entered into new era and starting dealing in consumer goods as well. Initially, it was decided that the industrial sales division would also look after the affairs of consumer products. In 1985, the distribution function of the consumer products was handed over to TETRA PAK. But in1986, Packages limited got back the distribution facility from TETRA PAK and established a new division with the name of consumer product division (commonly known as CPD). Since then CPD is responsible
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for the consumer products. This Division is totally separated from Industrial Products Division and follows its own policies. It makes its sales plan freely. Over all, CPD manages 43 different tissue paper products, which include tissue paper rolls, facial tissues, wet tissues, tissues for particular organization. This department has one CPD manager, 160 workers and 10 supervisors. Tissue Paper at Packages Limited is manufactured at Paper & Board Mill in reel form. In the production hall, the tissue reels are cut into individual tissues and then packed. The "ROSE PETAL" line of products includes facial tissues, toilet rolls, kitchen rolls, paper napkins, paper cups & plates. Apart from ROSE PETAL, Packages Limited is producing tissues for various companies like UTILITIES STORES etc. The other brand in tissues is “TULIP TISSUES”, and afterward in 2001 they introduce the FEMINEX. The raw material that is tissue paper is imported from Scotland. What they do is cutting, packing & selling. This division performs the activity of selling products to the ultimate consumer. The Marketing Manager supervises this Consumer Product Division. Packages limited started producing consumer products with the introduction of Rose Petal (Facial Tissues) in April 1981, formally rose petal started production in 1986. With the passage of time consumer products family increased. A brief history of all the consumer products is given on next page, 1. in 1981. 2. 1982. Tissues of pink color were introduced in Luxury pack of Rose Petal (Facial Tissues)
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3. 4. 5. 1984. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. spectacle. 16. In 2001, CPD introduced Feminex CPD is responsible from production to the distribution of all these products. Each sales officer is a product or brand manager and deals with the particular product assigned to him. Before the establishment of CPD, product used to take 12-15 days before reaching to the customer who had placed the order. After its establishment this problem was removed and CPD people were able to establish a distribution system, Production of table napkins started in 1985. In the end if 1985, the distribution is In February 1986, Packages Limited took Multi purpose rolls were introduced was In November 1986, facial tissues were The production plates and cups were Perfumed tissues were launched in 1987. In 1988, Feminex was launched. In 1989, wet tissues were introduced. In 1992, they manufactured a special kind Toilet rolls in 1983. Economy size pack of Rose Petal (Facial Multicolor tissues were also introduced in
tissues) was introduced in 1984.
handed over to Tetra Pak. the distribution back. introduced in October 1986. offered in pocket pack. started in 1987.
of wet tissue, which is used to clean the glasses of
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which covers the whole country. Before the introduction of flying tissues, Packages Limited has the sole monopoly over the tissue market in the country. But right after its introduction, it gave a tough time to the Rose Petal family. Although CPD people do not accept that Flying is giving them a tough time. But after its introduction they improved their quality by making tissues on a new machine, which is far better than a previous one.
PHILOSOPHY:
There was no local production of tissues to meet the population requirements and at that time the tissues were imported from abroad to fulfill the demand. Tissues were imported only through the personal baggage and they were only target the elite class. So the packages ltd has decided to start the production of tissues to meet the requirement of population and at low price to target the whole market that it can be in the reach of medium and low-income classes.
MISSION STATEMENT OF CPD:
Rose Petal is going on the road of progress very successfully and according to the marketing department of the company, they want to get “maximum share by maximum sales”. They are trying to cover every noted inefficiencies in the main departments of its. Along with they are also very conscious about the quality, and are doing very hard job to give best quality. Sales people are working on classic marketing idea “find as gap and fill it”.
GOALS:
Goals of rose petal are to expand and increase the consumer demand of tissues and to break the cultural barriers like replace towels and handkerchief with tissues. It was thought earlier that the tissues are for upper class but they target the whole market including the all-social classes. In the presence of imported and local tissues they have to create the demand
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of their brand so they provide their tissues at reasonable price and good quality.
TYPE OF BUSINESS:
Rose Petal is consumer product that was the first consumer product introduced by Packages Ltd. They produce: o Tissues o Paper Plates o Paper Cups & o Feminex.
CONSUMER PRODUCT DIVISION
Consumer product division as we have already the introduction of this department. I had 6 weeks internship in this department of Packages Limited Lahore. Packages Limited is no doubt have a great prestige in packaging industry and after having a great success in paper and board mill, industrial packaging they entered in the section of consumer products. In 1982 when they first introduced the consumer product ROSEPETAL in facial categories they had a very great opportunity to get almost a major market share. For having the internship I had to pass through some sort of interviews and I called for an interview on 25-07-2005. Consumer product division manager conducted that interview and after that interview he accepted my resume for Internship with CPD sales. And refer me again to HRM dept. and from there I get my Joining letter and then from 26-07-2005 I strated my internship there in CPD Sales. Afterwards I also got a chance of having the internship with CPD Marketing.
ORIENTATION OF CPD
On 26-7-2005 when the I join the first day in CPD. It was nice to see all sales and marketing force of Consumer products under one roof even the merchandising officer was also sitting there. Mr Saqib introduces with the sales force and all people welcomed me just as I am joing them as employee there. And
Mr M. Imran introduces about the CPD and handed over some brouchers and reading material for study which contains the data most about the products, their variants and about their distribution network. CPD has three type of its own products and after with it also has some institutional sales amd orders. Their products are
ROAE PETAL
RP PERFUMED RP ORO RP MULTICOLOR RP TOLIET ROLLS RP PAPER TOWEL RP TABLE NEPKINS RP LUXURY RP SUPREME RP POPUP RP KITCH ROLLS RP WET TISSUES RP POCKET PACK
MARKET SHARE OF PACKAGES LIMITED IN TISSUE MARKET:
Consumer Products Division is responsible from the production to the distribution of all these products. After its establishment CPD established a distribution system, which covers the whole country. Now Consumer Products Division has around 211 distributors, which covers the whole country. There is some major competitor of the company in tissue sector. Though flying tissue has been there in the market for the last 7-8 years, but still the Packages Limited is the market leader and has (75 to 80)% market share. Their distribution covers the entire country while Flying is only limited to big cities. Packages Limited has the monopoly in case of paper cups and plates and enjoys more than 80% of market share.
SALES STRATEGIES:
In Packages Limited the sales force is stricted to spend almost 80% of their time in market. And 20% of their time in the offices. Their distribution network is very strong, first of all I like to discuss about the distributors. There are 211 distributors In all over Pakistan, and only in Lahore they have 5 distributor and whole 211 distributors are didvded among 5 zones and these five zones are Packages limited Lahore
LAHORE
ISLAMABAD
SUKHAR
KARACHI
MULTAN
ANCHOR
VENUS
USMAN
CHOHAN
MILLINI UM
After these 5 distributors Packages limited has 7 sales supervisior to check upon thir performance they have meeting of supervisior in department on every Friday where they discuss about the ongoing problems and about complaints
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from market performance. and customers and about distributor’s
A sample report for the market evaluation and is presented in annuxre 1 and through this report various assessments are made that where brand is going on. What to do now with the brand. During the very first week I was assigned the project about the tissue paper. This project was on consumer behavior and attitude of tissue paper, this project is attached in the end of the report. Beside this I was assigned to have atleast 3 market visits and about to fill the above evaluation form and to know about the sales of particular area. I visited the areas like SADAR, ARAY BAZAR GULBURG, LIBERTY, IQBAL TOWN AND AWAN TOWN. Case summary is given in the annuxre 2 and in the project. No doubt it was a great exposure for me to have market visit in a very practical sense. Sales teem is assigned targets and they have to meet these targets and one of the important thing is that for institutional sales they have a separate distributor and in this institutional sales they have orders from PIZZA HUT, KFC,
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MCDONALDS, PIA, PRIME MINISTER HOUSE, OTHER DIFFERENT COMPANIES LIKE PARCO, PEARL CONTINENTAL etc.
MARKETING STRATEGY
Goals indicate what a business unit wants to achieve, strategy answers how to get these goals. Every business has a strategy for achieving its goals. The marketing strategy can be presented in a list form as follow, • • • • • Target market Positioning Product line Price Service • • • • Advertising Sales promotion Research development Marketing research &
MARKETING BUDGET:
Marketing budget is allocated to each brand individually and almost each brand gets Rs. 2.0 million each year.
MARKET SEGMENTATION:
Packages Ltd has defined and identified its target market for its consumer products. Target market for facial tissues include all the geographical areas, all the psychographics, Demographics because Rose Petal is trying to target each and every person in the society. They have such a wide product
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line, which satisfy the needs and wants of each and every individual. Price ranges from Rs. 5/- to Rs. 60/-. They have the packs of different sizes in different quantities and for different purposes. So, they always try to target each and every individual and that means they are using the aggregation segmentation strategy.
MARKETING RESEARCH:
A.C. Neilson Aftab Associates does marketing research for Rose Petal. Apart from research they send their employees on recreational tours that they can bring new ideas from abroad.
ANALYSIS: (PAST, CURRENT AND FUTURE POSITION)
The growth rate is 10-12% per annum, they have this estimated target for future market share. While in past and in present they have the same percentages.
MARKET POSITIONING STRATEGY:
In terms of price and competitors:
It is cheaper than imported tissues but expensive than local brands. So, they position their brand at higher price than their local competitors and cheaper than imported competitors. They are making Rose Petal and Tulip Tissues where rose petal is sold at higher prices for higher income level consumers and tulip is sold at lower prices to cater the demand of lower income level consumers and in this way they increase the market share and the number of consumers.
BRANDING STRATEGY BRANDING:
Every company tries to establish its brand in order to maintain a brand loyalty. A good brand name is the goodwill of the company. Again, the selection of the brand name is the responsibility of the marketing people. Packages Limited has the policy of separate family names for each of its product line. For example, in case of facial tissues, the family brand name is Rose Petal, Tulip etc. in the promotional campaign; the brand name is used, which in fact covers the whole family. The brand name of Rose Petal is used in advertising campaign while it has many sub brands like perfumed, plane, multicolor etc. Rose Petal brands are very succeeded in the market has a good image. This is brand image, which helps the company to achieve its objectives and Rose Petal is doing the something and achieving their desired objectives. Packages Limited itself also helps Rose Petal to create a quality image in the mindset of their customers and make it symbol of quality in the market.
SPECIAL ORDERS:
It has already discuss that Rose Petal also get some type of special orders of tissues from the market and fulfill the needs of these special order customers by providing them desired features. These special PIA, customers PC are like PIZZA the big organizations like hotel, HUT,
MACDONALD’S, KFC and pharmaceutical companies etc. these customers demand different type of modifications in packaging, style, colors like Sometimes quality and also certain other features of the different product of tissues. As some pharmaceutical companies demand wet tissues with
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certain special colognes. Some organizations demand to print of their logo on the tissue paper, packaging like PIZZA HUT or KFC etc. some organizations wanted to print their own design on the packaging material as PIA placed special orders of luxury size tissues with packaging of PIA colors green and white although trademark and logo of Rose Petal is also placed on the packaging. Special orders are provided in bulk not small in numbers. They have certain limitations in which they produce. Special orders are placed only for big organizations or certain events. Special orders are almost the 5 to 10% of their total production and they have no problem to manage these. Marketing people also provide their services to different big organizations in respect of packaging and order size and certain other facilities. If the customer wants to make some alterations in the approved design, then he has to pay for all those expenses, which the company has made on the previously approved samples.
PACKAGING STRATEGY:
Packaging is an essential part of any product and particularly for consumer products. Fortunately, Packages Limited has a separate packaging department, which is responsible for developing package for new products or to modify the existing package. The marketing people spell out the guiding principles and then the Packaging department design and prepare the package in the light of these guidelines. Sometimes, the packaging for special orders is done according to the requirements of the customer or client and certain modifications are made in design or styles etc. for example, PIA wants print of his logo on the packaging box. Pearl continental hotel wants to print of PC on the tissues,
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which are using by their customers. These are the some examples of special orders satisfied by the CPD. they made economical and adequate packaging of tissues for the convenience of all type of consumers.
LABELING:
They use brand label strategy as they use brand name ROSE PETAL only, on package but they mention the quantity of tissues in a package like 150 * 2 ply tissues etc
PRICING STRATEGY:
The basic formulae for price determination of Rose Petal products are: COST + PROFIT = PRICE The first aim is to cover the cost. After this a reasonable amount is charged in the name of profit. There are certain factors, which affect this profit margin, which might be internal as well external. These are:
b) Type of material. c) Number of colors to be used in printing. d) Time competition. e) Future prospects. f) Nature market demand. of the and of
strategy. k) Consumer purchasing power l) Competitors’ products prices
1. Packages Limited selects the medium pricehigh quality pricing strategy as Packages never compromises on quality of the products. Packages adopts the “Maximum Sales Growth” pricing objective. 1. Mark-up pricing Packages adopts “mark-up pricing” method. Sometimes Packages sells its products below cost also. For example they sell wet tissue below cost to create its market, because majority of people is not familiar and accustomed to use the wet tissues, which has limited demand in the market. The management of Consumer Product Division (CPD) also makes their price decisions on the basis of the competitors on going rate prices. So, they have to take keen interest on the pricing policies of the competitors. Although quality play a
leading role in their products, but prices have also its importance in the development of the product image in the market.
PRICING POLICIES:
The company has the policy to charge ex-factory prices. They are not concerned with the freight charges. All such costs are borne by the buyer. The basic objective behind the price determination of consumer products is to maximize the market share. The company actually wants a higher turnover. The marketing people set prices by considering the following factors.
COST OF PRODUCTION:
Every organization strives to sell its goods on Maximum profit. But the first objective is that to cover the cost of production, or to sell at the break even. And profit margin is set in order to maximize the market share.
CONSUMER PURCHASING FACTOR:
This is also very significant while determining the final price. Marketing manager has to pay full attention on the purchasing power of the target customers. Again the objective or the philosophy behind the whole pricing concept is to maximize the market share.
PRICING POLICIES OF THE COMPETITORS
The prices charged by the competitor also play very important particular in case of consumer products. Since price is the basic factor. Marketing department always keep an eye to track any movement by the competitors. If the company starts charged higher price as compared with the competitors, then definitely it is going to loose its
market share. Which is the major objective of the company.
GOVERNMENT TAXES:
Another factor, which affects the pricing policy, is the taxes imposed by the Government. Rose Petal has the policy to increase as with the increase in the taxes.
AREA PRICING:
Rose Petal has the policy to charge a homogeneous price for all of its consumer’s products through out the country. In this regard, enough margins are kept to cover the freight, and other district taxes
ROFIT/UNIT:
They are earning normal profit/unit @ 10-15%.
PRICES OF ROSE PETAL TISSUES:
Products
Perfumed tissue Factory price for Reg. distributor Factory price for unReg. Dist. Customer per unit price
PROMOTION/ADVERTISING STRATEGY:
Promotion is the last and very important component of company’s marketing mix program, because other components of marketing mix program of the company like product and price are performed mainly within the organization. It is the promotion, part of the company’s marketing mix, in which the company communicates directly with the potential buyers. Promotion is that element in an organization’s marketing mix that serves to inform, persuade and remind the target market of the organization.
Basically promotion is an attempt to influence the target market. The promotion is very vast field. There are many methods in use for promotion of products. These various methods together are known as “promotion mix”.Packages almost uses all the medias for advertising and promotion of their consumer products. The main advertising and promotional medias used by packages are as under:
1. Television ZEE TV 2. Radio 100 3. Urdu Newspapers Nawa-e-Waqat and Din
PTV, STN, PTV2, and
Radio Pakistan and FM
Daily
Jang,
Pakistan,
4. English Newspapers The Nation & Business recorder 5. English Magazines MAG 6. Urdu Magazines Urdu Digest 7. Sponsorship trade shows, and
Daily Dawn, The News,
SHE,
HERALD,
and
Akber-e-Jhan,
Family,
Sports,
T.V.dramas.
Exhibitions.
In sponsorship they mostly sponsor the television programs, many exhibitions like annual industrial exhibitions held in the Fort Stadium, Lahore. Packages also uses moving sign-boards, posters, stickers, mobiles, note book stickers for students and brochures for advertisement of its products.
PROMOTIONAL POLICIES:
It is the job of marketing department to promote the business of the organization. In consumer product division, marketing people have different promotion plans for each product. Without promotion, no consumer product can be successful. Promotional activities are an integral for marketing consumer products: 1. Increase the sales. 2. Outplace the competitor. 3. Increase the market share. 4. Higher turnover. 5. Informing the consumers.
6. Guiding of goodwill.
PROMOTIONAL BUDGET:
The management fixes the promotional budget. The basis premise is that whether the organization can afford the budget or not. A part from this fact, there are a lot of other factors, which the marketing people have to consider. These are: Cost of media. The number of products already in the market. The number of new products the company is going to launch.
ALLOCATION OF THE PROMOTIONAL BUDGET:
One of the hardest marketing decisions facing a company is how much to spend on promotion. Rose Petal division develops the promotional budget by defining specific objectives and estimating the costs of performing these tasks. There are number of tools that are used to promote a business. These include: 1. Advertising. 2. Sales promotion.
ADVERTISING:
Packages Limited arranges advertisement on different electronic media. Advertising accounts for about 80% of the total promotional budget. In-fact, advertising is the most popular and effective media to persuade the customers.
Share Of Different Media for Advertisement by CPD
Television, VCR Newspapers Pop Media Public Relation Others 65% 20% 10% 1% 4%
There are many forms of advertising contribute uniquely to the overall promotional mix. Advertising can reach masses of geographically dispersed buyers at a low cost per exposure. It enables the seller to repeat a message many times, and it lets the buyer receive and compare the messages of various competitors. This is because of the fact that all the products are of the convenience type and hence, require frequent advertisement. Consumer product division of the packages Limited normally follows the “PULL STRATEGY”. The advertising campaign of the Rose Petal, Tulip, Feminex division includes the following: a. Broad cast media. b. Print Media. c. Pop Media. d. Out Door Media.
Explanations of these advertising campaigns is given as below:
BROAD CAST MEDIA:
The largest share of the broadcast media is allocated to this media because it is the most interesting media with far reaching affects. Although, it is the most expensive media, but the nature of the products requires its use. It includes: Television FM Radio. VCR.
Consumer product division extensively uses FM Radio and Television while VCR is not used very much. Normally the ad of the facial tissues of Rose Petal consists of 15 seconds that is run both on television and the FM Radio. The advertising budget for Television and the FM Radio is about 65% of the total budget. When there is need to advertise on the T.V and on some other cable networks then the request is sent to concerned agency, in reply the marketing department receives the estimates from that agency, this estimate includes the available slots and the frequency for the brand in between different programmes and its cost. After reviewing and approval from the concerned person (B.M) they issue the release orders and send it to the agency and then their agency is responsible to run it on the T.V and other cable networks. The form of estimates and release order is given in the annexure3 and annexure 4.
PRINT MEDIA:
Print media is also an important part of the promotional technique. It includes: • • • Newspapers. Magazines. Direct mail etc.
Consumer product division normally uses newspapers and the magazines for the advertisement of the Rose Petal products and all of these print media used about 20% of the total budget.
POP MEDIA:
Pop media includes posters, stickers, and other point of purchase material. It takes about 105 of the total budget.
OUTDOOR MEDIA:
Marketing people normally don’t prefer its use because they think that this is not very effective. It has a nominal share in the budget. It includes billboards, roadside signs etc.
ADVERTISING AGENCY:
Packages Limited is doing intensive advertising for Rose Petal products. For this they are engaged with the well-known advertising agency LAWE& RAUF AND second one is PRETIGE.They changed advertising agencies according to their requirements and demands. If agency is not fulfilling their requirements then they switched to another agency. From their CPD sales they spend almost 10 % on the advertising. For the compensation of advertising agency they give them a fixed fee.
2-
SALES PROMOTION:
Its share in promotional budget is about 10%. It includes: Sampling. Gifts Schemes. Cent of scheme. Gifts Sales promotion is defined as short-term incentives to encourage purchase or sale of Rose Petal products. In Rose Petal Consumer promotion in sales promotion is designed to stimulate consumer purchasing, including gifts, price off, and similr in the other two barnds like Tulip and Feminex. Trade promotion in sale promotion is design to gain reseller support and to improve reseller selling efforts, including discounts, allowances, free goods, cooperative advertising, push money and trade shows.Sales force promotion in sales promotion is designed to motivate the sales force and make sales force selling efforts more effective, including bonuses, contests, gifts and sales rallies.
COMPETITIVE STRATEGY:
Their competition strategies are based on the competitor’s strategy (flying tissues). They do not follow the price war competitive strategy. They follow the standard of product and quality in competition.
PERSONAL SELLING:
They don’t do personal selling. But they have spot selling
FUTURE FORECAST OF MARKET:
Future forecast according to the management of the Consumer Product Division is 10-12% per annum.
QUALITY CONCEPT IN MARKETING:
Quality is one of the marketer’s major positioning tools. Rose Petal is the ISO 9001 certified and has the standard of their products in the tissue market. They also follow up the rules of total quality management to provide the best quality product to its end users. They follow different quality improvement program to increase their profitability as well the image in the market. First priority of the CPD is to improve the different features and characteristics of the core product. Rose Petal is satisfying most of its customers by providing the quality product. Quality in the Rose Petal means the softness, strength ness and absorbs ness of the tissue. In case of special orders a margin of 10% of variation is considered as normal variation and the customer has to accept the order as such. In Rose Petal, marketing people also deliver the marketing quality as well as production quality to their customers, which is key to success in the market.
SWOT ANALYSIS
STRENGTHS:
• People are more familiar with Packages than its competitors only due to the reason that they are pioneer in the packaging industry. • Specialized management personnel and highly
motivated staff.
• •
Leader in paper technology in Pakistan. Large R &D budget, almost 34 % of the investment is made in this section.
•
Effective distribution management with proper check and balance through proper distribution networks and its division of areas.
•
Major market share in tissue paper in which rose petal covers almost 75 % of tissue paper industry.
•
Manufactures own tissue papers, its competitors use imported one.
•
A long listed product line and length as compared to the competitors i.e rose petal has 7 varients only in facial tissues.
•
Monopoly in wet tissue.
WEAKNESSES:
• • • Sell their products on cash basis. High grammage tissue, not much softer. Analysis of sales on primary sales report not on secondary. • Highly paid sales staff, sometimes reluctant to attend small shops. • • High prices as compared with competitors. Mostly, the orders are not completed on time, due to the communication gap between the marketing people and the production people.
•
When the sales executives go out on customer’s visits, there is no one in the department, who in his absence, may deal with his allotted customers.
• •
The promotion process is very slow in the company. Particularly consumers are not satisfy with their price of RUMMAL (Rose petal)
OPPORTUNITIES:
• • • • • • Demand of tissues and other disposable products are increasing, as its awareness is increasing. Can target young generation with different varients. Different kinds of taxes levied by the government. Different kinds of smuggled tissues. High costs. Tough competition is expected in future, Hier is going to establish the packagingh firm.
THREATS:
(EXTERNAL ANALYSIS)
Opportunities
• Being one of the best packaging manufacturers in the Asia, Packages Limited has great opportunity in the export market in the Middle East and other third world countries. • As yet, there is no rival company within the country at the level of Packages Limited, the market share and capacity of production can be enhanced. • Quality awareness & consciousness among the customers are increasing.
Threats
• Advertise taxation policies of government are causing reduction in profitability. • The use of offset packaging is decreasing day by day, due to greater use of Polyethylene and disposable packaging.
CONCLUSION
• Packages is one of the latest and pioneer Pakistan. • It also assists the other countries in • • paper technology and management. It is leader in pulp & paper and packaging industry in Pakistan. It pays a huge amount annually in the form of taxes to the government of Pakistan. • • “Rose Petal” tissues are very popular among customers. The market share of Rose Petal is 75% approx. and 20%-25% in packaging sector. packaging units in
•
People buy tissues for price ranges Rs. 10 to Rs.50 but consumer demands more soft tissues at this price.
• •
Company’s
distribution
channels are very effective. The packing of Rose Petal tissues is much attractive as compared with its competitors. • It has more variety in tissue line as • • compared with the competitors. It has monopoly in wet tissues. The management of Packages Limited is very loyal to its “quality policy”. • Company’s advertisement budget for Rose Petal, Tulip and Feminex is very high as compared to its competitors (Flying & Fay). • Packages Limited is in pulp & paper and packaging material manufacturing business since 1957, so its management has very vast experience in these fields. • Packages Limited mostly deals in industrial goods for which they never advertise.
•
In
consumer
products of
the
management creating advertising. •
Packages through
believes in “pull strategy” i.e. pull
Recently consumer promotion has been introduced for certain consumer products.
•
The prices of the products of Packages are higher than the competitors due to the fine quality, it provides.
•
It can also be concluded that Packages should reduce the prices of its tissues.
•
Since the people are getting easy going day by day so the future of Packages Limited is very bright as it makes disposable products.
RECOMMENDATIONS
During internship in Packages Limited, I conclude that it is an excellent organization. Both the packaging and consumer products are the market leaders. Apart from its excellent operations, it does not tend to be stationary at one point. Although it is quite difficult to suggest some thing to such an established organization yet in the following lines, I make a
humble effort to give some recommendations to this well performing organization. • The most important issue is the high prices of the products of Packages Limited; due to this it loses a number of customers. So the management of Packages must take some measures to cope with this problem so as to attract new customers. • The Paper & Board Industry is presenting many new opportunities in the future, in domestic and foreign markets. There is a need to exploit these opportunities before the competitors use them up. The production capacity of this industry should increase. • They should realize its constant market share, which is not exceeding from 25-30%, in the packaging division. So measures should be taken in order to expand the target market and increase market share. • The Industrial Marketing Department should tap the pharmaceutical sector, because there are many more potential customers for Packages Limited in the above-mentioned sector. • They can enhance the image of their company by entering into the field of public relations. If they let the public know their plans and operations, say, in electronic media, it is hopeful that the people will consider the organization with a sense of still greater esteem and this can add to the growth of their consumer products.
•
In Packages Limited, some departments are decentralized but still there is a need of more decentralization in some departments.
•
Although the management has given many attractive incentives to its employees, but there is a need of workers' colony in Packages Limited.
•
The Packages Limited follows an unsound advertising strategy. The advertising budget should be increased, and it would be better if an advertising department is opened, instead of paying big amounts to the advertising agency.
•
Consumer Product Department is producing disposable cups and plates, but they are not promoting these products. They should educate consumers about these products with an effective promotional program.
•
As the training procedures are also very important to have qualified people on their jobs, special emphasis should be laid on to the management development part of the training programs.
•
Packages Limited does not offer the credit base sales which effect the sales and as well as losing the more other opportunities.
Annexure-1
RESEARCH REPORT ON TISSUE USAGE PATTERN AND BEHAVIOR
Consumer Products Division
PRESENTED TO:
Mr. Muhammad Imran Regional Sales Manager Lahore
PRESENTED BY:
Sajjad Ahmad Rauf
INTERNSHIP PROGRAMME JULY-AUG 2005 Annexure-2
Annexure-3
CASE SUMMARY
Segment 1 2 3 4 5 6 7 8 9 10 11 12 13 A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class
Gender Male Female Female Male Female Male Male Female Male Female Male Female Male
Consumer Tisseu Brand User Type Category Business Man House Wife Rose Petal Facial Tissues
Duration of Purchase Usage Frequency More than One Year 4 3 1 4 2 1 5 1 2 5 2 1 2
Purchase Period Mid of Month Start of Month Start of Month Mid of Month Mid of Month Start of Month Start of Month Start of Month
Inspiration Market Image Packing & Convenienc e Packing & Convenienc e Market Image Packing & Convenienc e Packing & Convenienc e Market Image
Satisfaction Satisfaction with Quality with Price Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes
Satisfaction Coinsisent with User Availability Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Changes less Freqently Depends on Availability Changes less Freqently Depends on Availability Changes More Frequently Yes Yes Yes Depends on Availability Changes More Frequently Changes less Freqently
Rose petal More than & Other Toilet Rolls One Year Brand Facial and More than Toilet One Year
House Wife Rose Petal Business Man
Rose petal Facial and More than & Other Toilet One Year Brand Facial and More than Toilet One Year Facial and More than Toilet One Year Facial Tissues More than One Year
House Wife Rose Petal Student Business Man Rose Petal Rose petal & Other Brand
House Wife Rose Petal Student Jasmine
Facial and More than Toilet One Year Facial Tissues More than One Year
Job Holder Rose Petal Business Man Rose Petal
Facial and More than Toilet One Year Facial and More than Toilet One Year Facial Tissues More than One Year
Packing & Convenienc e Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e At end of Market Month Image Start of Month Start of Month Market Image Packing & Convenienc e
House Wife Rose Petal Business Man Rose Petal
Facial and More than Toilet One Year
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class
Male Female Male Female Male Female Female Male Male Female Female Female Male Female Male Female
Job Holder
Flying
Facial and More than Toilet One Year More than One Year
1 15 2 4 5 3 1 2 1 4 3 1 1 1 1 2
At end of Month Mid of Month Mid of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Mid of Month Mid of Month Start of
Advertising Packing & Convenienc e Packing & Convenienc e Market Image Packing & Convenienc e Market Image Market Image Market Image Packing & Convenienc e Packing & Convenienc e Market Image Market Image Market Image Packing & Convenienc e Packing & Convenienc e Packing &
Depends on Availability Depends on Availability Changes less Freqently Yes Yes Yes Depends on Availability Yes Yes Changes More Frequently Yes Changes More Frequently Yes Changes More Frequently Changes More Frequently Changes
House Wife Rose Petal Toilet Rolls Student House Wife Business Man Rose Petal
Facial and More than Toilet One Year
Rose petal Facial and More than & Other Toilet One Year Brand Jasmine Facial Tissues More than One Year
House Wife Rose Petal
Facial More than Tissues One Year Facial More than Student Rose Petal Tissues One Year Facial and More than Job Holder Rose Petal Toilet One Year Business Man Rose Petal Facial Tissues More than One Year
House Wife Rose Petal House Wife Flying
Facial and More than Toilet One Year Facial Tissues Facial Tissues Facial Tissues Facial Tissues For 6 Month More than One Year For 6 Month More than One Year
House Wife Any other Student House Wife Job Holder Rose petal & Other Brand Tulip
Rose petal Facial and More than & Other Toilet One Year Brand House Wife Rose Petal Facial and New User
Toilet 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 A Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class Female Female Female Female Female Male Female Female Female Female Female Female Male Female Female House Wife Rose Petal House Wife Tulip Facial and More than Toilet One Year Facial Tissues More than One Year 1 1 3 4 2 1 4 1 1 2 1 3 5 3 2
Month Start of Month Mid of Month Start of Month Start of Month
Convenienc e Market Image Market Image Advertising Advertising
less Freqently Yes Yes 3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Changes less Freqently Yes Changes More Frequently Yes Yes Depends on Availability Yes Changes More Frequently Yes Yes Yes Changes More Frequently Depends on Availability Changes More Frequently
House Wife Rose Petal Business Man House Wife Any other
Facial and More than Toilet One Year Facial and More than Toilet One Year
Rose petal Facial and More than & Other Toilet One Year Brand Facial and More than House Wife Rose Petal Toilet One Year House Wife Rose Petal Student Student Tulip Facial and More than Toilet One Year Facial and More than Toilet One Year More than One Year More than One Year More than One Year
Same Packing & throughout Convenienc Month e Start of Advertising Month Packing & Start of Convenienc Month e Mid of Market Month Image Start of Month Start of Month Start of Month Start of Month Mid of Month Start of Month Start of Month Market Image Packing & Convenienc e Market Image Packing & Convenienc e Packing & Convenienc e Market Image Packing & Convenienc e
Rose Petal Any Other Facial Tissues Facial Tissues
Job Holder Rose Petal House Wife Rose Petal House Wife Rose Petal Business Man Student House Wife Rose Petal Any other Rose petal & Other Brand
Facial and More than Toilet One Year Facial Tissues Facial Tissues Facial Tissues More than One Year New User More than One Year
45 46 47 48 49 50 51 52 53 54 55 56 57 58
B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class B Class
More than One Year More than One Year More than One Year
1 4 3 1 3 1 1 6 3 2 1 1 1 2
House Wife Rose Petal Toilet Rolls House Wife Rose Petal Job Holder Rose Petal House Wife Rose Petal Student House Wife Student Tulip Flying Rose Petal Facial Tissues
Facial and More than Toilet One Year Facial Tissues More than One Year
Facial and More than Toilet One Year Facial Tissues Facial Tissues Facial Tissues Facial Tissues Facial Tissues Facial Tissues Facial Tissues More than One Year More than One Year More than One Year More than One Year More than One Year More than One Year More than One Year
House Wife Rose Petal Student Rose Petal
House Wife Rose Petal House Wife Rose Petal House Wife Rose Petal Student Rose Petal
Facial and More than Toilet One Year
Packing & Convenienc e Packing & Start of Convenienc Month e Same Packing & throughout Convenienc Month e Packing & Start of Convenienc Month e Same Packing & throughout Convenienc Month e Mid of Market Month Image Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Same Packing & throughout Convenienc Month e Packing & Mid of Convenienc Month e Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Start of Month
Yes Changes More Frequently Changes More Frequently Changes less Freqently Changes less Freqently Yes Changes less Freqently Changes More Frequently Changes less Freqently Yes Changes less Freqently Changes less Freqently Yes Changes less Freqently
59 60 61 62 63 64 65 66 67 68 69 70 71 72 73
B Class B Class B Class B Class B Class B Class B Class C Class C Class C Class C Class C Class C Class C Class C Class
Female Female Female Female Female Female Female Male Male Male Male Male Male Male Male
More than One Year More than One Year More than One Year New User More than One Year More than One Year More than One Year More than One Year More than One Year More than One Year
4 3 3 3 1 1 1 2 1 1 1 2 1 1 1
House Wife Rose Petal House Wife Rose Petal Student Any other
House Wife Rose Petal House Wife Rose Petal House Wife Rose Petal Job Holder Rose Petal Business Man Student Student Tulip Rose Petal Rose Petal
Packing & At end of Convenienc Month e Same Packing & throughout Convenienc Month e Same Packing & throughout Convenienc Month e Start of Market Month Image Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Packing & Start of Convenienc Month e Start of Month Start of Month Mid of Month Start of Month Mid of Month Start of Month Start of Month Start of Month Market Image Market Image Advertising Packing & Convenienc e Market Image Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e
Yes Changes less Freqently Changes less Freqently Depends on Availability Changes less Freqently Yes Changes less Freqently Changes less Freqently Depends on Availability Yes Changes More Frequently Yes Yes Yes Yes
Facial and More than Toilet One Year Facial Tissues Facial Tissues Facial Tissues Facial Tissues More than One Year More than One Year More than One Year More than One Year
Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal
74 75 76 77 78 79 80 81 82 83 84 85 86 87
C Class C Class C Class C Class C Class C Class C Class C Class C Class C Class C Class C Class C Class C Class
Male Male Male Male Male Male Male Male Male Male Male Male Female Female
Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal Job Holder Rose Petal Student Student Business Man Business Man Business Man Business Man Business Man Business Man Tulip Tulip
Facial Tissues Facial Tissues
More than One Year More than One Year
1 1 2 2 1 1 3 2 2 1 1 1 3 1
Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Start of Month Mid of Month Mid of Month At end of Month At end of Month At end of Month Start of Month
Facial and More than Toilet One Year Facial and More than Toilet One Year Facial and More than Toilet One Year Facial and More than Toilet One Year Facial and More than Toilet One Year Facial and More than Toilet One Year
Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e Packing & Convenienc e Advertising Advertising Advertising Market Image Market Image Market Image Advertising
Yes Yes Depends on Availability Depends on Availability Depends on Availability Depends on Availability Depends on Availability Changes less Freqently Changes less Freqently Changes More Frequently Changes More Frequently Changes More Frequently Changes less Freqently Changes less
Rose petal More than & Other Toilet Rolls One Year Brand Rose petal More than & Other Toilet Rolls One Year Brand Jasmine Tulip Rose petal & Other Brand Rose Petal Facial Tissues Facial Tissues Facial Tissues Facial Tissues More than One Year More than One Year More than One Year More than One Year
88 89 90 Total
C Class C Class C Class 90
Female Female Female 90
Business Man Business Man Business Man 90
Rose Petal Rose Petal Tulip 90
Facial Tissues
More than One Year
1 1 1 90
Start of Month Start of Month Start of Month 90
Advertising Advertising Advertising 90
Yes Yes Yes 90
No No No 90
Yes Yes Yes 90
Facial and More than Toilet One Year Facial and More than Toilet One Year 90 90
Freqently Changes less Freqently Depends on Availability Depends on Availability 90
Annexure-4
ESTIMATES SEND BY THE ADVERTISING AGENCY
COMPANY (AGENCY NAME) ADDRESS: CHANNEL ________________________
S/R DATE DAY PROGRAMME SPOTS COST
TOTAL COST: ___________________
SIGNATURE:
Annexure-5
Company name Address Reference to estimates: Channel:______________________________________________ Day Pro Mon Tue Wed Thu Fri Sat Sun total Date:____________
Total
Total amount paid to agency for the above spots is Rs._________
Signature:
Annexure -6 (References)
www.packages.com.pk Tulip business plan 2005
(Provided by Mr.imran moonis) (Brand manager tulip) Ph#0321-4420753
Brand analysis (Feminex)
(Provided by Brand Manager Feminex) Miss Asma Shahzad 042-5811541ext 349
Annual sales report
(Provided by Mr. M. Imran) Regional Sales Manager Lahore Ph# 5811541 ext 355