Transcript Slide 1

Listen to the Sound of the Day
Yesterday, Today & Tomorrow
By
Naveed Ahmed Khawaja
Date: 19th November 2009
A Company with a Heart and Soul
Our Products
The History of EBM
• English Biscuit Manufacturers (Pvt) Ltd was established as a joint
venture company in 1965 with the name of PEEK FREANS
PAKISTAN LIMITED
• In 1966 the UK sponsor company was renamed as Associated
Biscuits International Limited (ABIL), while the venture was renamed
to English Biscuit Manufacturers (Pvt) Ltd, which stands to date
• EBM started manufacturing and marketing of world famous Peek
Freans range in 1967 in order to provide Pakistani consumers with
good quality, nutritious and hygienically packed biscuits
A Company with a Heart and Soul
The Industry Issues
• The Early Years - 70’s
– Economic Challenges
• Rupee de-valuation, Labor Unions unrest, Surging imported RM
prices, Market too small (branded biscuits)
• EBM making losses everyday
– Tethering on the brink of bankruptcy
– Incurring losses of Rs 5000/- per day
– Traditional & Old style Biscuit industry
•
•
•
•
BP – Montgomery – Sunshine etc.
Branded market small & stagnant
No concept of “Strong Branding”, “Positioning”
No Product innovation/ differentiation etc.
A Company with a Heart and Soul
Key Challenges
• Leadership Challenge
– Shake & revive the industry
– Bring Change through Competition
– Achieve Growth in branded biscuit industry
• Strategy & Branding
–
–
–
–
–
–
Create need & niche
Biscuits considered as a Luxury food item & not a necessity
Introduce Branding & Positioning
Bring Product & Packaging innovation
Grow Vol. share to survive
Invest in Technology & R&D
A Company with a Heart and Soul
The Strategy of 70’s
• Taking Competitive Edge
•
•
•
•
Biscuits marketed as “food in between meals”
Biscuits marketed under PF & EB umbrellas
Through strong & modern “Branding”
The Pied Piper concept launched
– The Sound of Yesterday, Today & Tomorrow
• The Legend Leads
• Gained Instant Popularity, Awareness, Relevance, Trial and
Loyalty
• A larger than life icon…
• But the Total Market did not grow!
• Competition did not compete
A Company with a Heart and Soul
The Strategy of 70’s contd...
• Grow the total Market
–
–
–
–
–
Created Competition from within
Launched another brand range “Happy”
Created competition in branded biscuit ind.
Overall Market grew by +30%
Market growth attracted a mushrooming of entrants
• Union, Montgomery, AB Foods, etc
A Company with a Heart and Soul
The Strategy of 80’s
• The mid-Years - Era of Market Growth
– Grew market leadership through launch of new innovative
products
• Introduced Premium products i.e. Farm House Cookies (87-88)
• Introduced the EB Royal Range (88-89)
• Entry of Danone through CBL i.e. LU brand
• Competitive environment fuelled further market growth
A Company with a Heart and Soul
The Strategy of 90’s
• Intense competition & market growth
–
–
–
–
EBM market share slipped
Standing Still…. Was not an option
A change was imminent
With increasing input costs, increasing competition &
market share slip strategic business decisions had to
be taken
– EBM adopted a “high volume, low margin
strategy”
A Company with a Heart and Soul
The Strategy of 90’s contd…
• Price Increase Freeze in mid-90’s
– Objective
• Create barriers of entry for new entrants
• Make biscuits more affordable for consumers to aid conversion
from loose biscuits to packaged
• Allow economies of scale & capacity utilizations
– Outcome
• Market grew volumetrically
• Small players crashed out as their scale of operations could not
sustain the price freeze
• EBM focused on increasing internal efficiencies
– New plant expansions
– Balancing, Modernization & Replacement (BMR)
A Company with a Heart and Soul
The Strategy of 2000 & Onwards
• Current Times – Era of EBM Growth
–
–
–
–
Continue Price Freeze till 2007
Continue High Volume, Low Margin Strategy
Focus on Increasing Internal economies and efficiencies
Cost reductions without impacting product quality
• Self-power generation
• Reduction of product wastages
• Increase in plant efficiencies (new plants)
• Focus on long-term contractual agreements for raw materials procurement
• Alternate sourcing of packaging material (imported vs. local)
• No compromise on the product quality via any cutting of corners
– Ensuring that the consumer is not cheated
– Trust and confidence is maintained
A Company with a Heart and Soul
The Strategy of 2000 & Onwards contd…
• Market Penetration Strategies
– Product Launches & Re-launches
– EBM’s true Marketing Success Stories
• Sooper Re-launch - leading the turnaround of business & growth
of overall biscuit market
Sooper 1.avi
Sooper 2.mpg
– Capitalizing on Market Leadership Position
• RIO Double Treat – product innovation (2 creams)
• Marvell – Product Innovation in Shape
• Party Re-launch
– Seeking new consumers through new consumption
occasions
• Sandwiches Re-launch – Over 40 years old brand
– Tapping up-country markets
• Peanut Pik & Pista Re-launch
A Company with a Heart and Soul
The Strategy of 2000 & Onwards contd…
• Focus on increasing Distribution Penetration into Rural
Markets
– Rural Development Programs
– Opening of New Towns & Direct Servicing
• Focus on Demand Generation
– Out-spending competition on media
– Trial generation & repeat purchase
• Consumer Promotions
• Brand Activations
– Heavy investment behind CSR initiatives to project positive
brand & company image
• Demand of Brands > Ability to Supply
– 5 Focus Brand Strategy
A Company with a Heart and Soul
How did we do that ?
“Power of Vision”
Vision
• To be recognized as a LEADING and
PROGRESSIVELY FORWARD looking FOOD
COMPANY, providing the best quality products to
everyone in Pakistan
• To be an INSTITUTION financially healthy,
promoting universal human values and growing as
a useful, purposeful corporate citizen
A Company with a Heart and Soul
Corporate Objective
• Transform EBM into a living institution with a
body, mind & soul which is recognized as a good
corporate citizen due to its core values as Open
minded, transparent, & responsibly delivering
consumer satisfaction with a sprit to excel.
A Company with a Heart and Soul
Core Values
• Follows the Highest Ethical Values & Professionalism
• Believes Product Quality is next to religion
• Pursues International Safe Food Standards & Hygiene to
promote National Health since its very inception
• Environmentally sensitive & responsible
• Attains Technological Advancement in both human resources,
plant & machinery
A Company with a Heart and Soul
Our Philosophy
• Food is “Rizk”
• “Hygiene” a part of a bigger concept of Pakeezgi
• What is the concept of PAKEEZGI for us at EBM?
 Innate realization that the Food we offer, MUST be of the
highest Quality
 Hygiene at the work-place
 In our THOUGHTS & ACTIONS
 In having a SENSE of RESPONSIBILITY and the HEART to
do what’s right
A Company with a Heart and Soul
Sense of Responsibility
Towards Consumers
– Ensuring Quality & Affordability
• No compromise on product quality
• Focus on improving internal efficiencies & economies of scale
– Offering the best Quality & Taste
• Adherence to International Quality Standards
• First Biscuit company in Pakistan to attain HACCP & ISO 90012000 Certifications
• State of the art manufacturing processes with investment of over
Rs 2 billion
A Company with a Heart and Soul
Sense of Responsibility
Towards the Nation
– Company contributes over Rs 850 million to the National
Exchequer in the form of Taxes & Duties
• Clubbed in the elite group of highest tax-payers
– Provides Employment (direct & indirect) to over 2000 ppl approx
– Company ethos of a Caring Corporate Citizen
• As a Responsibility
• As an Obligation of Good Governance
A Company with a Heart and Soul
Sense of Responsibility
Towards the Nation
We make the world around us better.
A Company with a Heart and Soul
Sense of Responsibility
Towards the Nation
– Sensitivity to the Environment
• Proactive Environmental
practices
• Water Treatment Plant
• Separate Area for Solid Waste
Management
• ISO 14001 Certification
• Only Biscuit company to have
received the Environment
Excellence Award for 5
consecutive years
A Company with a Heart and Soul
Caring Corporate Citizen
• Primary focus of Corporate Social Responsibility
(CSR) initiatives on 3 key areas:
• Health
• Education
• Sports
HEALTH
EBM
EDUCATION
A Company with a Heart and Soul
SPORTS
Sense of Responsibility
Towards the Nation
A Company with a Heart and Soul
Where are We?
“LAST SEVEN YEAR
HIGHLIGHTS”
01-02 TO 08-09
Sales Volume – Master Cartons
+17%
-2%
31%
5,900,000
31%
6511223
5,577,5825,587,576
5,400,000
4,900,000
48%
4,400,000
4,244,828
3,900,000
3,400,000
3,065,518
81%
2,900,000
11%
2,400,000
2,074,804
1,900,000
1,400,000
900,000
1,028,5781,144,607
'01 - 02
'02 - 03
'03 - 04
'04 - 05
'05 - 06
'06-07
'07-08
'08-09
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
5
A Company with a Heart and Soul
A Company with a Heart and Soul
A Company with a Heart and Soul
Recognized as
A Company with a Heart and Soul
A Company with a Heart and Soul
The Mantra
•
Leadership
–
–
–
–
•
Power of Vision (No Dreams – No Gains)
Magic of a Rallying Call
Directing Peoples Power, Energy, Exuberance & Passion
Make the Change happen
Branding
– Learn to reject, Research & Explore, Spend time
•
Technology
– Invest ahead of time, Be the 1st to introduce, Take risk
•
Customer Care
– Suit your business to customers needs, otherwise
– Customers will suit themselves
•
Work Environment
– Open, Challenging, Competing, Empowering, Team working & Fun working
The Harder You Work…The Luckier You Get!!
The Future
• God has been kind to us
• Our Consumers have been kind to us
• We have lived up to their trust and confidence in our
company and brands through our Marketing initiatives
• Aggressive marketing plans for the future
• We have glorious past…an enviable present and Godwilling, a prosperous future ahead of us where the
Sound of Peek Freans will continue to keep resounding
in your hearts
A Company with a Heart and Soul
THANK YOU
A Company with a Heart and Soul