Internship Report On Rafhan Best Foods - COMMERCE SOLUTIONS

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Internship Report on Rafhan Best Foods
by Commerce Solutions in Internship Report, Rafhan Best Foods
INTRODUCTION

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

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

COMPANY INFORMATION;
BOARD OF DIRECTOR;
Ms. Mushraf Hai (Chairman)
Mr. Sikandar Nawaz Tiwana(chirf executive)
Mr. Robert Zoon.
Time and Date
Mr. Robert Zoon.
Mr. Agha Jamshed.
Mr. Julian Frost.
Mr. E.A.Nomani.
Mian Nisar Ahmed Mannoo.
Mian M.Adil Manno.
Mian Zulfikar H. Manoo.
Mr.M.Yousuf Malik.
Company secretary; Mr.Naveed.A.Zafar Malik.
Bankers; Citi Bank, N.A.
ABN-AMRO Bank, N.V.
Standard Charted Grindlays Bank Limited.
Emirates Bank International.
Deutsche Bank.
Askari Commercial Bank Limited.
Auditors; Ford,Rhodes,Maorrow.
Charted Accountants.
Leagal Advisor; Surridge$Beecho
Registered Office ; 52K.M,Lahore-Multan Road.
Pernawan,Bhai Pheru.
Lahore,Pakistan.
Head Office and Shahpur Interchange
Shares Department; 14-KM, Multan Road
Lahore,Pakistan

(company annual report)

Overall business review
Knorr,
They are the one who introuduce the cubes in this particular country.In knorr they
have ketchup,yakhni,chicken cubes,pulao cubes,noodles.they are market leader in
almost all these knorr products .there is no question that they have to face many
challenges against ketchup .but still they are enjoying good market position.they
also have expanded availability of ketchup to all major cities and have also
introduce the ecnomy pack.and there is no question they are getting more and more
popularity by (knorr ka dasterqhawan).this particular programe helps to make them
popular around the media.inspite all this there promotion in ketchup noodles and
soups really helped them to achieve high market growth in retail leavel.
Oils;
Inspite if increase in oil by 15%.but still they are market leader in cornoil.which is
one of there key products.refhan corn oil showed his best in month of june that why
one of there key products.refhan corn oil showed his best in month of june that why
they ask june as the month of oil.it shows its best on this month.because of high
promotion schemes.they are showing there best in the market because of proper
and complete market coverage.There (sales officer ) are so much smart that you can
say it that they are working as the backbone of the company.In there Oil range they
were able ti maintain their market share through timely consumer related
activities.The strategy to reach lower income consumer with low unit price pack
also helped us in increased penetration.In addition,timely trade promotions helped
themcounter competion effectively .
Desserts;
In desserts they have jelly,pudding,kheermixx.they are getting their best by
introducing the new products,popular flavours and small pck sizes.they have a
bandle of variety in all these products.which helps them to remain as popular in the
foods business.Rafhan desserta showed unprecedented growth driven through
effective consumer promotion,Improved pactaging and family oriented education
programe(Rafhan Meetha Maza).
Dreesings;
Sandwhich spread is another new entry in refhans products.which has his own value
in tastes.actually what is the reason behind there extensive growth is .that they
invest money as a water in trade activities,all these initiatives along with
distribution expansion led to double digit volume growth.
Dextrose;
They are getting growth not only in Pakistan at this particular product bus also in
neighbouring country.actually what they do is they always keep close eye in the
market opportunity.and grab it with both hand whatever and whenever it is
arrive.by introducing Rooh-e-Samar and Energile Sporty they are still gettinh high
market share.On the same they further increase their product availability by
operating special promotional vans in rural areas.

Source,(company annual report)

Chief Executive,s Reviw;
I am pleased to share with you the business result for the 15 months ended
December 31,2001.The rwo key external variables impacting business were the
afghan war and rising tension between India and Pakistan.the early monsoons also
adversely affected our dextrose business.Whilst uncertainties increased,New
challenges and business apportunities were identifies.Timely marketing and sales
activation enabled us to maintain overall sales level and mitigate the negative
impact on profits.
Operating Results;
Energile sells almost entirely during the summer season.Extension of accounting
period to 31 december does not give any additional sales or profits in respect od
Energile.Inspite of this incomparability,We maintained our sales level of last year on
an annualized basis.Our gross profit percentage was lower then last year because
prevailing market conditions prevented us from fully passing the direct cost
increases to our consumers and heavy trade discounts were given to maintain
market share.Oils continue to be under pressure and volume loss was avoided by
maintaining lower margins.Focus on brands,supported by marketing and sales
activation,helped achieve sales growth of 33% in knorr,Whilst the decline in desserts
activation,helped achieve sales growth of 33% in knorr,Whilst the decline in desserts
category was reversed.

History
and
present status

HISTORY OF COMPANY
Rafhan Maize Products Co. Ltd. started its operations in 1952 as a pioneer maize
processing industry in Pakistan.
Haji Muhammad Shafi (Late) was the founder of the company. Haji Muhammad Shafi
was an innovative person. He derived the company name (Rafhan) very tactfully
from his three sons.
The names of his sons are:
Muhammad Rafi
Muhammad Hanif
Muhammad Nisar
. Rafi
Hanif
Nisar
Raf
Ha
N
Rafhan

In 1952 the company was established on very small scale.at that time it was
involved in manufacturing of corn product only.during there work mr shafi
researched that the demand of starch will increase in the future.because of no rapid
preparation of starch at that time.so mr haji sharif decided to to produce starch
from corn.Fhot these reason he decided to import machinery from abroad.and
decided to sell its 50% shares to any big company.So an American firm called cpc
took 50% shares of refhan.and in 1998 best foods took the possassion of the refhan
due to which it become refhan best foods.and in 2000 best best is hand over to
leverbrothers.due to which it become refhan best foos(unilever company).
in this way, the popular name of Rafhan is invented. Today brand name Rafhan is
very popular among people.

Overall history
Overall history
1952 company started operation as the first major corn processor in the
country.
1962 refhan became affiliated with cpc international.cpc acquired 51%equity.
1963 corn oil refinery commissioned.
197 6 consumer marketing division formed.
1985 started using Rafhan as umbrella a brand for consumer products.
1987 rafhan listed as pubic limited company with 18.5% of equity sold to
public.cpc continues to retain 51%equity.
1990 purchased land for new consumer factory.
1991 set up independent consumer food division.
1992 lunch of first core brand products,knorrbouillion cubes and bag soups.
1992 inaugration of perna plant.
1998 independent consumer products company under new name Rafhan
Bestfoods ltd.
1999 purchase of Glaxose_D business.
2000 take over by lever brothers LTD.

Refhan best foods is the fastest growing foods company in Pakistan.which is
manufacturing and markting consumer foods.it is market leader in all major product
categories.
High margin fast growing business.
Nps gowth (21%per annum).
Gp margin (31%per annum).
It has a nationwide distribution network.
It has many competitor.but still enjoying its its holding position.its competitors are
mitcheals,national,shehzan nestle.but still enjoying monopoly in
Glaxose_D,Glucose_D,CornOil.knorr,energile. It really have a high share in all these
products.there is no question that it has to face tough competitors like tang with
energile.and to compete with tang they have introduce energile rushbara,So they fill
the vacuum where it needs.in ketchup
it has really tough competitors like shehzan, national,mitcheals.but they are
working on it to change its taste.in case of noodles they have competition with
meegi but still they have a high market share.But in case of corn oil Glaxose_D cubes
they have a some sort of monopoly.and enjoying full market share.

Rafhan Best foods to merge with Lever Brothers
By Dilawar Hussain
KARACHI, Oct 3: While the last month's market rumour of Lever Brothers Pakistan's
'firm bid' to takeover Tapal Tea, may have after all turned out to be phony, the giant
tea to personal products producer is yet again in the news.
A copy of a joint press release issued to the three stock exchanges, by Lever
Brothers Pakistan and Rafhan Best Foods Limited on Tuesday, confirmed that the
agreement for merger of Bestfoods with Unilever had been approved by the
agreement for merger of Bestfoods with Unilever had been approved by the
shareholders of both companies on October 2, after clearance from the regulatory
authorities in US and EU. "An eventual merger in Pakistan", the statement said, "will
be subject to the approval of the directors and shareholders of both the companies
and of the Court".
During the day's trading at Karachi Stock Exchange, the 50- rupee share in Lever
Brothers Pakistan, shed Rs22.7 5 to close at Rs952.25. Around 3,140 shares changed
hands with the stock hitting the day's lowest and highest at Rs951 and Rs981.
The 10-rupee share in Rafhan Bestfoods did not react and closed Tuesday at the
long-held price of Rs248.10.
The joint press note went on to state that the merger (of the two parent companies)
had gone to create a global food and consumer goods company with a portfolio of
powerful worldwide and regional brands with strong growth prospects. It
reproduced the words of Patrick Cescau, the new Director Foods business in
Unilever, who said: "Our goal is to build a truly new company-one that is even better
than and different from either of the two great partners as they are today. This is not
just a merger. It's a true transformation. And the result will be the pre-eminent food
company of the world".
The press release said that the chiefs of the two local subsidiaries: Delpon de Vaux,
chairman & CEO of Lever brothers Pakistan and Suleman Daud, MD & CEO of Rafhan
Bestfoods had stated in a joint communique: "The subsidiaries of both companies in
Pakistan will continue operating with the same commitment to serve their
customers and meet the expectations of their shareholders".
The two bosses were stated to have expressed confidence that both companies
would bring together 'tremendous management resources', capable of realising the
growth and synergy opportunities presented by the merger of the two parent
companies. "There will be no immediate changes in their relationship with their
respective business partners, suppliers, distributors and trade", the two heads were
stated to have emphasized.
Lipton and Brooke Bond have together provided Lever Pakistan the leadership in
the Pakistan tea market with 45 per cent share. Earlier, Lever had taken into its fold
the 'Polka', which added to its own 'Walls', has established the company firmly in the
icecream business. The Rafhan Bestfoods, created on April 3, 1998, following the
spin off of the consumer business by CFC Rafhan Limited, stands out as one of
strongest among the 22 listed companies on the food & allied sector of the stock
exchange.
With the ultimate merger with Rafhan, Lever Pakistan would not only add to its
portfolio the half a dozen popular food products including the Knorr range of items,
but also the blue-chip, Glucose-D.
Early this year, Rafhan had bought over the ailing ghee-cooking oil-soap producing
company: Kakakhel Industries Limited. With hindsight, it becomes easier to
understand now why Rafhan, which had nothing to do with ghee-cooking oil and
soap should have decided to take over the unit and make an effort to revive the
operations; Lever's expertize in the areas, perhaps, were foreseen to prove valuable
operations; Lever's expertize in the areas, perhaps, were foreseen to prove valuable
asset. Or is that just a co-incidence?

OBJECTIVES OF RAFHAN BESTFOODS
Their objective is: customer satisfaction + people development + business practices
+ innovation and learning = financial performance.

missions ;
we are the leading consumer products company in the Pakistan,a multinational
with deep roots in the country.
We attract and develop highly talented people who are exitited.empowered and
commited to deliver double-digit growth.
We server the everyday needs of all consumers everywhere for foods ,hygience
and beauty through branded products and services that deliver the best quality and
value.
We strive to remain an ever simple and enterprising business.
We use our superior consumer understanding to produce breakthrough
innovation in brands and channel.
Our brands capture the hearts of consumers through outstanding
communication.
Through managing a responsive supply chain, we maximize value from supplier
to customers.
We are exemplary through our commitment to business
ethics,safty,health,envirnment and involvement in the community.

There main slogan is;
(Bring out the Best )

Codes of business/vision.
Standard of conduct.
We conduct our operation with honesty,integrity and openness, and with respect for
the human rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we have
relationships.
Obeying the law.
Unilever companies and employees are required to comply with the laws and
regulations of the countries in which we operate.
Empolyess.
Unilever is commited to diversity in a working environment where there is mutual
trust and respect and where everyone feels responsible for the performance and
reputation of our company.
We will recruit,employ and promote employess on the sole basis og the qualification
and abilities needed for the work to be performed.
We are committed to safe and healthy working conditions for all employees.we will
not use any form of forced,compulsory or child labour.
We are committed to working with employees to develop and enhance each
We are committed to working with employees to develop and enhance each
individuals skills and capabilities.
We respect the diginity of the individual and the right of employees to freedom of
association.
We will maintain good communications with employees through company based
information and consulation procedures.
Consumers.
Unilever is committed to providing branded products and services which
consistently offer value in terms of price and quality,and which are safe for their
intended use.products and services will be accurately and properly
ladelled,advertised and communicated.
Shareholders.
Unilever will conduct its operation in accordance with internationally accepted
principles of good corporate goverance.we will provide timely.regular and reliable
information on our activities,structure,financialsitution and performance to all
shareholders.
Business partners.
Unilever is commited to establish mutually beneficial relations with our
supplier,consumer and business partners.
In our business dealings we expect our partners to adhere to business principles
consistent with our own.
Community involvement.
Unilever strives to be trusted corporate citizen and as an integral part od
society,tofulfill our responsibilities to the societies and communities in which we
operatePublic activities.Unilever companies are encouraged to promote and
defend their legtimate business interests.
Unilever will co-operate with governments and other organizations,both directly
and through bodies such as trade associations in the development of proposed
legislation and other regulation which may affect legitimate business interests.
Unilever neither supports political parties nor contributes to the funds of groups
whose activities are calculated to promote party interests.The
environment.Unilever is commited to making continusus improvements in the
management of our environmental impact and to the longer term gola od
developing a sustainable business.unolever will work in partnership with the others
to promote environmental care,increase understanding og environmental issues
and diddeminate good practice.Innovation.In our scientific innovation to meet
consumer needs we will respect the concerns of our consumers and of society.we
will work on the basis of sound science.applying rigorous standars of products
safety.Competition.
Unilever believes in vigorous yet fair competition and supports the development of
appropriate competition laws.unilever companies and employees will conduct their
operations in accordance with the principles og fair competition and all applicable
regulations.
Business integrity.Unilever does not give or receive,whether directly or
indirectly ,bribes or other improper advantages for business or financial gain.no
employee may offer.give or receive any gift or payment which is,or may be
construed as being,a bribe.any demand for,or offer of,a bribe must be rejected
immediately and reported to management.Conflicts of interests.All
unilever employes are expected to avoid personal activities and financial interests
which could conflict with their responsibilities to the company
Unilever employees must not seek gain for themselves or through misuse of their
positions.
Future prospects;
At present as we all know is that our beloved country in under pressur .But still
there is a path to growth wich will be the path of refhan best foods.actually what the
lever brother believes is that there is lout of potential at this particular region of
asia.which the y want to get.and they are getting it with there great leader
qualities.what they only need to focus only is to mechanize there distribution
activity.and they are working on it,by adopting this by the time they will maitain a
healthy business growth in the future INSHAALLAH.
Part two

Company management system;

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

Part 2

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

The principles in this policy statement are to be observed regardless of the form
of the transaction.
The term gifts,laon.favor,and contribution are used in the broadest sense.They
apply to a transmission of,or any express or implied promise to transmit,anything
of value,regardless of form,whether in money,property,ot services,including the
use of facilities or personnel.
The company must maintain books,records, and accounts which is in reasonable
detail,accurately and fairly all its transactions and activities.
No transaction is to be authorized or entered into with the intent that it shall
be documented or recorded in a deceptive manner, nor is any false or artificial
documentation or book entry to be made or ordered to be made for any
transaction.similarly all funds , asets and transactions must be recorded on the
appropriate books.
For policies they make surveys first,unilever also gives suggestions.Executive
committee also plays his role in all policies.
Meeting are very frequent here usually monthly.But it can be 3 or 4 depemd upon
the sitution.but what I saw here is meeting are very long.and everyone plays his
role.
There are almost 65 officier at this particular company.
Departments,No of employee in each department.
Export food solutions Chief Executive Office
2 5 2
Finence HR/ADM Manufacturing/fasilabad
13 3 2
Manufacturing/perna Marketing Quality Control Perna
13 9 3
Research&Development Sales Supply Chain
6 35 11
PDP(performance development plan)
PEP(performance evaluation plan )
These are the two form through which performance of officier are judged and
assessed.All the promotions are progreed through these form.These two tools helps
in making career ladder also .which is six monthly.
Here the evalutuon method is 360degree based.
Your peer bosss subordinates all make youe evalution
Here there is a open door policy.people feel free to talk with even M.D.and the
management styles here is democratic
Human resource department

Employees benefits&advantages;
This department is also called the backbone of the any company.because the
success of any business is depend upon it.The reason is that the employees benefits
is related with this department.All the recruitment is to be done by this department.
Training.recruitment,selection,and compensation are the main function performed
by this particular department.
Training&development;
This is one of the important function of human resources department.All employees
needed specfic training related to their function to mmaintain
companystandards.Training is not only important for the employees but it is
necessary for newly hired people whether they are experienced or not.
Training is also important to develop carrier planning and promotion system and
records for monitoring employees carrier progress.it help manages to evaluate and
recommend manages for development all activities and only training provide
information regarding how to institue and operate quality improvement programs
and team building.
Employees Benefits$Advantages;
Benefits are the rewards which are given to employees in the response of there good
performance.it is being analyzed that employees productivity is directly related to
benefits .if a firm wants to motivate their employees a good number of benefits
should be given to them.Refhan best foods by having in view this strategy are giving
should be given to them.Refhan best foods by having in view this strategy are giving
quite a reasonable number of advantages to their permanent employees.some of
these are given below.
Conveyance Allowance;
Special facility is given to the ladies staff for the pick and drop daily and in a
emergency wheneer needed.cconveyance allance is also given to the employees
that is 300 per month.There is also the facility of patrolling.which is 4rs per Km.
Over time;
The cost of living allowance of rs350 per month os added in employees pay.the over
time is paid to the employees as .
Cola+18%+house rent+conveyance allowance.
Shift Allowance;
Shift allowance is fiven accordingly to the basic pay.However evening shift
allowance is rs10.and the night shift allowance is rs20.
Group insurance;
The company in case of death of employees will pay rs 10000 on mercy ground to
the deceased family in addition to the compensation paid by the insurance company
against insurance.
Hajj;
Company also send its employees for hajj.The decision of the employees to be send
is done by having a draw in formal gathering.
House rent Allowance;
The company pays house rent allowance to its permanents employees from 80% to
85% of their basic salary inclusive of the cost of living allowance of 505and
18%increase in wages on account of the rise in cost of living.
Leaves;
Company allow total 41 leaves to its permanent employees with in a year.
Annual leaves consist of 21 days
Casual leaves can taken for 10 days.
Sick leaves are 10..

Gratuity;
The company has established its own gratuity policy/fund for the purpose of
financial assistance to be paid on retirement.Permanent workets,office and mill staff
subject to the conditions laid down in company gratuity policy,This payment of
gratuity is not statutory as written under (standing order)ordinance in 1968.The
company has established procident fund under Pakistan industrial and commercial
employees (standing orders)ordinance 1968 and all employees are its members.
The gratuity establish by the company would be admissible on completion of
continous ten years of service also upon resination instead of completion of twenty
fice years of service.However,the gratuity would not be payable in case of dismissal
upon misconduct in case service is less than twenty-five years.
All payment workmen,office and mills staff including all those cavered under EOBI
shall continuee to remain 58 years.This applies to all permanent employees covered
and benefited under this settlement.
The retirement age of workmen and employees is 60 years except those who are
found medically or physically unfit to perform their respective duties.The company
shall have the right to refer such cases to company medical officer appointed within
the company in the Rafhan dispensary and in case of his opinion that employee can
not perform his duty due to sickness or physical weakness.The company shall have
the right to retire such employee on attaining the age of 59 years.The oponion of the
company medical officer shall be final and can not be challenged at any forum.
Long Service Award;
Company gives long service award .These service awad are based on service basis.
10 year = Tea set
15 year = Blanket
20 year = Iron
25 year = ceiling fan
30 year = sewing machine
35 year = T.V
Funeral Expenses;
A company will pay rs 1500 to window of deceased employee for funeral
expenses.More amount can also be granted from welfare fund.
Fair Prices Shops;
Pulses of about 7 kg is given to permanent employees.
Purchases limit of consumer product increase to rs 250 per month.
Discount on purchase of consumer product is 45%.
Sugar 6 K.G per month.
Rice 6 K.G per month.
Soap 2 packets.
Corn oil 3 tins.
Corn oil 3 tins.
Christian Religious Ziarat;
Christian employees are given a fund of rs 40000.
Uniforms;
Employees in the following areas will be provided three uniforms per annum instead
of two uniforms.They would also be entitled to shoes as being provided to
attendants,drives,and operators at
Glucose refinery, Special Glucose, Dryers,Dextine, Engineering,
BoilerHouseOperators, Expeller House.Oil Rfinery, SoapSection, SpecialStarch,
storeHelpers, ProjectStoreHelpers, Warehouse,BardanaWorkers, Maize Production
Workers (already being provided) Mali and Helpers.
Ramzan Working Hours;
The staff observes the following working hours during the month of Ramzan only
without any break.The relaxation has been given by the company in weekly total
hours due to Holy month.
Office Staff; Monday to Thursday ands Saturday
8 a.m to 3 p.m
Friday
8 a.m to 1 p.m
mills staff&Day Shift; Monday to Thursday ands Saturday
7.30 a.m to 2 p.m
Friday
7.30a.m to 1 p.m
Marriage Allowances;
The company pays to the employee rs 3000/ upon marriage under the existing
policy.it is also agreed to accept seven double cases instead of six per calender year
basis under this fund.the left over double cases can be carried forward in the next
year.in case of an employee is left out of the double cases during a calender year due
to the completion of double cases,he will have the right to apply out of the quota of
next year.
Education Scholarships;
The company give scholarship to 40 children of the permanent employees of the
company which will be allowed under the existing rules. The company has also
agreed to increase rs 50 per month in each category of scholarship.
For those employees who are not covered under the workers children education
cess ordinance 197 2.The company will pay monetary assistance to one child of such
emplyee studying up to metric subject to the fulfillment of same conditions as laid
down under the workers children education cess ordinance.The monetary
assistance to the employees child will be given equivalent to the amount being paid
to an employee covered under the children education cess ordinance
House Buliding Loan;
Amount of this fund is rs 1000,000/with a maximum loan of rs 40000/per worker
and staff.The interest will be charged@rs 3200 on usual terms and conditions of this
loan.
Part Three

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

ISSUE OF STATIONERY
All stationery is issued by the administration department to various departments of
the company. It also maintains the record of such stationery. Administration
department prepares reports about the issuance of stationery on monthly basis.
MAINTENANCE OF BUILDING
Arrangements of the repair and maintenance of factory building is made by the
administration department.
ENTERTAINMENT FACILITY
Tea is provided to all management during working hours in order to keep the staff
fresh and to improve their efficiency. All arrangements for entertainment are
performed administration department. Arrangements for entertainment includes
purchase of milk, sugar tea etc.
RECEIPT AND DISPATCH OF MAILThe administration department receives
mail and distributes it to the relevant person. In the same way it dispatches all the
mail of the company. Mail is made through OCS, TCS, or postal method.
Part four;

Total production maintence.
Production facilities.
Perna plant.
Perna plant;Refhan best have there plant in perna .thats why they called it perna
plant.there plant is one of the best plant of the asia .which is no 2 all over asia.This
plant is 52 km from Lahore.They has purchases this plant in 1990.and then there
production from 1992.they made a no of products at this particular plant like
Custard, cornflour, jam,kheer mixm energile
Jelly,cubes,noodles,ketchup,soups,
The manufacturing of refhan corn oil is not made ath this particular
plant.manufacturing ofoil is done in Rafhan plant which is in faisalabad.
Staff,They really have a trained staff.people are full of skills there with great
working experience they are not only producing the quality products.but also
making handsome changes in it.company is also providing the handsome salary with
the pick and drop dervice.at the same time what I had observe there is that the
working condition were very good there.they have a really nice mess there.and
everyone is putting his best there.
Total production management;
Through TPM (total production management.we shall achieve our golas of providing
best quality products to our customers at a cost which is lower then our
competitiors.and deliver reliability which meets our customers requirement.we
shall continuously maintain these standard through our team of high skilled and
motivated people.focused on continious improvement and innovation and with
operations which are safe and defect free.
TPM,(mission)
Zero accident.
zero breakdown.
Zero defects.
Zero wastages.
Product quality beter then competitor.
5 s,
Sort.
Set location.
Shine rise.
Stand rise.
Sustain.
Production procedure,There plant is one of the best plant of asia.which is really
modernize.for production of all its product they use 3 basis.
Starch.
Dextrose.
Sugar.
With the help of these three basis they made all there products
Basis of starch.Through starch they made
Custard,icecream,cornflour,
And all these products have a bundle of flovours.
Basis of dextrose,
Through dextrose they made.
Gloxose_D of different flovour.
Energile of different flovour.
Basis of sugar,Through sugar they made.
Quicksert_jelly,pudding,Kheer mix.Energile rushbara.
They have 2 scret code of business
Microbase.
Macrobase.
Which are not know to any one.
There are 2 main dumping machine base material.base material is rushed into these
machine.then through dumping it send to mixing machine.after which labortary
machine.then through dumping it send to mixing machine.after which labortary
check is to be taken.then it goes to packging side.
All this procedure is so organized.That there is no chance for the any beakdown.and
targets are fuuly achieve through these plant.sone they do have to face problemlike
packging material is not properly available.Due to which they have to face some
problem.But normally they produce there product before date,
Production facilities;
Access To Raw Material;

Access to raw material some times causes a problem at plant is situtated far from
supplier in the city but for some products such as skippy jelly they import raw
material from abroad.So in some cases they have to face problem.other wise it is
really at the right place.
Low Land Cost;
The cost incurred to acquire the land here was much less then that of any location
near to Lahore.thats why this plant is located in huge area.and one of the biggest
plant of Pakistan.
Radio connection with head office;
The pant is located 38 KM from the headoffice.Availing this location vicinity
between head office and the plant,Rafhan has developed its own radio network.Now
data at head office computer network is accessible from the plany.through radio
waves.Which really help to make better communication between head office and
plant.
Layout Equipment;
Plant layout in the integrating phase of a production system.The machines for
manufacturing cubes,soups,tamato,ketchup and energile are laying on second story
of the building.There are not very big machines and also supported by automatic
packing machines.

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

Room For Eepansion;
This plant had been made by having into consideration coming 100 years. There is
an ample land round it.Which can be easily used as acquired if needed.This land will
really be helpful for the future expension.
Quality Control Assurance;
The plant is very sensitive to the issue of quality and hygiene.The company believes
that
99% lean is unclean
from this you can have an idea.
Also the company policy is
Prevention not correction.
Although the company uses different chemicals to make products germ free .But
preventative measure are also taken here
Each worker and visitor, washes his hand mouth and wears polythese bags on
shoes,So that minimum germs can enter in the production area.Insect-killer devices
are installed on different places as a safety measure.
The store where flour bags are kept,a good number of rodent- traps are place there.
Land in Right Chemistry;
In perna plant there is a special waste water treatment plant.With the help of this
waste get treated and make useful for using again.Then this water is used in the near
fields for more fertility.they are realy carefull about all these measures.
Car Parking Availability;
As this plant covers a large area of land so there is a place for car parking of office
staff and visitors too.This really facilitate the workers to work safely.Beacause there
they dont have to worry about the there cars.they have a complete check system
for all the cars.
Work Force;
Low class labour is easily available there .They can easily be hired from that
area.where as staff and upper level management go from Lahore on regular basis.
Transportation;
Company has its own transportation system,Staff get picked and dropped from the
main head office.This pick and drop facility really facilitates the employees.due to
all these measures they show their best.
Health Facilities;
Company has a special contract with the social security hospital.Who provide
specialist doctor with ambulance in case of emergency.they are really carefull about
the health facilities.because there worker are there assets.which they dont want to
lose.
Housing facilities;
This particular company dont offer housing facility itself./but for the compensation
of this offer house rent allowence.so that they can have a beteer facilities of life.

Near Future Problem;
It is expected that in coming twenty years plant will be in the center of residential
area.So there will be a problem of pollution.so for this there might be a beed to shift .
Highly Sophisticated Technology;
They use highly sophisticated technology.With the use of it Rafhan has increased its
productivity and reduced its labour cost.
Utilization of Sun- Light;
In the second story of plant at some places roof transparent is use.The sun-light
illuminate the hall during the day time.It saves a fairly good amount of
electricity.through this they save allout.
Adequency Of Circulation;
The movement of transportation to and from factory is very easy and do not cause
any problem.There is also an emergency access to fire alarm,fire-fighting equipment
and ambulance for the safety of lives.
Lightning;
There is a good arrangement for the ightning system within plant.however in the
case of failure ,high power generators get started.That is for the continious
production process.

B
5.1 RAND MARK
Rafhans brand mark varies from brand to brand or product to product. Like type of
lettering and colour of Rafhan, Knorr, Energile etc.
5.2 TRADE MARK
Rafhan has registered trademark of all its brands like Energile, Glaxose-D, Knorr,
and Bestfoods etc.
Part five;
Company marketing mixx

Pricing strategy
Distribution strategy.
Brand strategy.
Promotion strategy.

4. MARKETING STRATEGY
4.1 Marketing budget:
15% of total sales.
4.2 Decision making authority in marketing department.
At Rafhan marketing executives, brand managers are all take active part in decision
making however the final decision making lies with the departmental head i.e.
marketing manage (Mr. Mubashir).
MARKETING MIX
4 Ps of Rafhan Bestfoods Limited.
Product
The product of Rafhan includes consumer food products, e.g., Custard, Jelly,
Cooking Oil, Dextrose Foods, Noodles, Mayonnaise etc.
Price
The products price vary from product to product. Some popular products prices
are as follows.

(Source: Marketing Department)
Rafhan Corn Oil 1 liter Rs.90/-
Glaxose D 450 gms Rs.55/-
Bestfoods Mayonnaise 1 kg Rs.115/-
Knorr Cubes 20gms Rs.10/-
Energile 400 gms Rs.52/-
Rafhan Custard 300 gms Rs.28/-
Knorr Ketchup 200 gms Rs.62/-
Place
Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore Pakistan.
Placement / Promotion
They place their products in local as well as in foreign market. They export directly
and indirectly.
Export Directly Central Asian Countries.
Export Indirectly USA, UAE.
Rafhan promote their products through media, and other trade incentives to
distributors and wholesalers.
(Source: Marketing Manager)
5. MARKET SEGMENTATION
The management of a company has differentiated its product through its prestigious
brand name as compare to other local companies.
It launched uniform and standardized product therefore, there is no need for market
segmentation because the wants and other characteristics (i.e. geographic,
demographic and buying behaviour) of their target market are somewhat similar.
5.3 TARGET MARKET OF RAFHAN
Rafhan has adopted the strategy of market aggregation. It views its target market as
a single unit i.e. one mass marketing strategy for its product line of foods. Rafhans
target market includes Middle Class, Upper Middle Class and Upper Classes of the
population of Pakistan.
5.4 MARKETING RESEARCH
Infact there is no separate department for marketing research. The marketing
executives are responsible for the research work. Every executive have assigned
one brand, for the purpose of research and is responsible to report their research
work about any modification of their respective product.
5% of marketing budget.


6. MARKET SHARE
6. MARKET SHARE
In Dextrose Foods and in custard they have major share in the market and its pie is
growing @ 10% per annum

7. MARKETING POSITIONING
Rafhan is considered to be a trusted and premium brand because of its unique health
association Rafhan is positioning their product in the best of their customer health
which also differentiate from their competitors. Over the last 38 years, Rafhan corn
oil gained increasing consumer preference as a result of high and consistent quality
meeting the international standards.
In 1998 two new oils, canola and sunflower were introduced in the 100% pure oil
segment, which further strengthened brand positioning and broadened its consumer
base. The company has recently launched Rafhan Corn Oil 10 liter economy can and
1 liter affordable pouch to cater to the needs of various income house holds.
Rafhan Corn Oil consumers are enjoying the concept of health cooking oil that was
introduced in the country by Rafhan.

8. BRANDING STRATEGIES
Marketing entire out put under producer brands. Rafhan is marketing all of its
products under its own brand name.
8.1 BRAND NAME
Rafhan popular brands includes:
Rafhan
Energile
Knorr
Bestfoods
Skippy
Cater Plan
Glaxose D.
8.2 BRAND EQUITY
Rafhans products image building features includes:
Colour
Rafhan colour by itself is a selling advantage. For the sake of variety they have full
coloured products.
Quality
Rafhan maintains the high standards of quality of its products for the entire target
market, which creates a strong image in the consumers mind.
Warranty
It is the policy of the company that it replaces the products damaged due to
manufacturing or quality fault whenever claimed.
8.3 SLOGANS / LOGOS
Satisfying a Global Appetite is the international slogan of the Rafhan Bestfoods.
Other includes:
Energile The energy drink.
Knorr Life can be so delicious.
Rafhan Oil No oil is better than Rafhan Corn Oil, Canola Oil and Sunflower Oil. A
part of your diet.
8.4 PACKAGING
In Rafhan packaging the product line is done according to the product nature. In
order to have attractive and impressive packaging, company uses the services of
various packaging agencies such as Packages and Saima Packages. For the benefit of
the consumers, care instructions are also given on the package. e.g. not for oven use
and shelf life of a particular product etc. Rafhan also uses multiple packaging
strategy for its product like Knorr Chicken Cubes, Energile Ras Bhara, Knorr Instant
Yakhni etc.
Rafhan uses
Carton Packs
Soup Packets

Dressing Bottles
Oil Tins
Jelly Cups
Energile Sachet Packs
8.5 LABELING
Rafhan is using two types of labels:
Brand label
Descriptive label (bread spreads, yakhni, corn oil, energile etc.)


9. PRICING STRATEGY
PRICING OBJECTIVES
Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
Rafhan prices its product to achieve a certain percentage of return on its
investment. The base of pricing is the time consumed in the production process and
target revenue per day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15
on 5kg of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market.
They have fixed prices products due to the reliability of consumers towards price.
Prices are decided keeping in view the prices of other products of same size,
category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.
(Source: Sales Department)

10. ADVERTISING STRATEGY
11.1 MEDIA USED
Rafhan Bestfood Ltd. using radio, TV and Billboards and newspapers for advertising
purposes.
11.2 ADVERTISING BUDGET
They have allocated 35% of marketing budget for advertising.
11.3 FACTORS FOR DECIDING MEDIA STRATEGY
Which one is more effective
Cost benefit
More access

11.
COMPETITION
There is no monopolistic competition of products in the market like Rafhan Energile,
Rafhan Custard and Glaxose-D.
There is oligopoly competition in the market for its products like Ahmad, Shezan
and Mitchells Jams and Jelly.
12.1 TYPE OF COMPETITION
Brand Competition
Ahmad, Shezan, Mitchells and Lever Brothers, Nestle, Seasons.
Substitute Competition
Jam-e-Sheeren, Rooh Afza, Shezan Juices, Planta and Dalda Cooking Oils.
12.2 COMPETITIVE STRATEGIES
Rafhan Best Food Ltd. provides trade incentives to distributors and customers
against competitors. They also provides various schemes to attract the customer.

(Source : Marketing Department)

15. BRAND LIFECYCLE
Knorr
Energile
Rafhan Oil
Introduction
Growth
Maturity
Decline

Rafhan Bestfoods
Introduction
Growth
Maturity
Decline
COMPANY LIFECYCLE

INDUSTRY LIFECYCLE
Foods Industry
Introduction
Growth
Maturity
Decline

PRODUCT LIFECYCLE
Dextrose Food
Chicken Cubes
Oil
Introduction
Growth
Maturity
Decline

16. NEW PRODUCT DEVELOPMENT STRATEGY
In order to increase the sale volume or market share, Rafhan uses to develop new
products keeping in view the customers demand and taste. This strategy helps in
strengthening company position and result in healthy profit.
17 . QUALITY CONCEPT IN MARKETING
Rafhan act on a strategy of producing and selling large quantities of quality
products, thats why they are able to keep the unit costs low and offer need
satisfying products at attractive prices. Rafhan develop produces and deliver
affordable products with enough variety and uniqueness that nearly every potential
customer can have exactly what he wants, Rafhan is a quality conscious firm, they
never compromise on quality thats why their products are No. 1 in the market and
they are market leader.
18. SOCIETAL MARKETING
Rafhan is not engaged in Societal marketing so far.

(Source : Marketing Department)
products
best foodsproduct;
product is what is perceived to be.Thus a product is more than something with
physical characteristics.In a very narrow sense.a product is set of tangible physical
assembled in an identifiable form.A border interpretation each brand as a seprate
product.
Rafhan best food LTD has a wide range of its product.Rafhan best foods conduct a
regular research and surveys on the changing habits of the taste of the
customer.Results are then given to special research and developent department and
accordingly new product are lounged and even alternations in the existing products
are doneTheir policies are usually between innovarive and initiative caregories of
new products developments
This company has a unique product and a no of product. And here are the some
details for them.
Source.(Philip Kottler)
KNORR,Knorr is a well known product all over the world.it has its market in almost
in 100 countries.it is not only its the world leader in soups and cubes.
Knorr was introduced in Pakistan in September 1992.with its first product knorr
chicken cubes.which is made from the real chicken gained wide acceptance among
housewives for the prepartion of savoury dishes.Normal,Routine dishes matte by
house wives were no longer boring.knorr chicken cubes when added in daal
vegetables gave these dishes a distinct chicken flavour .
Since then there is no looking back.knorr has successfully expanded its product line
catering to the needs of Pakistani consumers.In 1993 knorr soups and instant
noodles were launched which became an instant hit among housewives and
children.Instant yakhni was the next product from knorr that captured the
imagination of Pakistani consumers in 1995.knorr instant yakhni is a broth made
from real chacken that gives instant energy along with great taste.
In 1998,knorr pulao cubes were introduces providing the traditional tasting pulao.it
offers a convenient alternative to pulao yakhni because it is made of real chicken
and the right blend od spices and herbs .With knorr pulao cubes house wives
prepare rich,authentics and traditional tasting pulao.
In the same year knorr enteres the sauces category with real tamato ketchup.In
1999 chilli0garlic sauces was added to knorr sauce product line making it s hot
favourite among young and old alike.The latest addition to the knorr family is the
convenient 2-serving soup which helped the product line to reach down.
Knorr Tamato Ketchup

packing285gms into 24 glass bottles into case
7 00gms into12 glass bottles into case.
MakingMade from real tomatoes,knorr tamatto ketchup is a dip which has a
spicy,tangy tamato taste.
Ingredients
Tamato puree,suger.salt,vingar,maize,starch,spices,onion powder garlic
powder,xanthan gum,citric acid,permitted food colours,preservatives.
usage
to be used as a dip with snacks for enhancing taste.consumer benefits.The only
ketcup made with real,fresh,juicy tangy tomatoes,
Shelf life12 month
Knorr Noodles

packing65 gms plastic pouchinto 7 2 pouches into case.
Product Concept.
A tasty and filling noodles snack which can be prepared within minutes,at any time .
Ingredients,
Noodle cake.wheath flour,natural vdgetable oil,salt,sodium and potassium
phosphate and carbonates,permitted food colour,flavour mix,salt monosodium
glutamate,sucrose,maize starch,chcken fat,yeast extract powder,ginger flakes,soya
sauce powder,artificial chicken flavour,spices,citric acid,sodium inosinare and
guanylate and green vegetables.
Usage,
Taken as a snack or meal at any time.
Shelf life,
12 month

Knorr Yakhni,

Packing,
4Gms into 1152 sachets into case.
Product Concept,
Real chicken yakhni in powder form.just add boiling water.
Ingredients,
Refined salt,modified maize starch,mosnosodiom glutamate,sucrose,hydrogenated
vegetable fat,artificial chicken flavour,chicken fat ,chicken meat, inosinate and
guanylate,citric acid,spices,parsely and permitted food colours.
Usage,
Tasty,nutritional hot drink,consumer benefits.easy to prepare,delicious,all the
goodness of chicken,affordable price.
Shelf Life,
18 months

Knorr soups

Packing,
4 serving 12 pouches into 6 dispensers=1 case.
3 serving. 12 pouches into 12dispensers=1case.
Package Size,
48g (4serving ) chicken corn.
55g (4serving ) hot n sour.
43g (4 serving) chicken n ginger.
43g (4serving) chicken mushroom.
24g (2serving) chicken corn.
27 .5g(2serving) hot n sour.
Usage,Reall tasty soup which is to be cooked with water.
Shelf Life,15 months.

Knorr Chicken Cubes.

Packing.
20 Gms into 288 shells into case.
Ingredients,
Salt ,hydrogenated palm oil,mososodium glutamate.sugar chicken fat.chicken
meat,yeast extract powder,maize starch,artificial chicken favour,soya sauce
powder,sodium inosinate,guanylate,spices,citric acid.
Shelf life,18 months.

Pulao cubes.

Packing.
20 Gms into 288 shells into case.
Product concept,Made from real chicken and the right blend of spices and
herbs,knorr pulao cubes bring the delicious taste,colour,aroma of traditional pulao
to all the rice dishes,
Dressings,
Sandwhich speads and mayonnaise are the well know products of the best
foods.these are the internationally recognized products.best food introduced it in
1996.best foods spreads are a delicious blend of selective top grade eggs,vegetables
and good quality oil.
These were introduced in 1998 .there are three variants in these ready to use
sandwhich spreads.chilli garlic spreads was first introduces by Rafhan best food
cater to local tastes and complement eating habits.
Sandwich Spreads,

Packing,
300 ML glass jar into case.
Product Concept,
Best foods sandwhich spreads are a delicious blend of selective top grade
egg,vegetables and good quality chicken that enhances the tastes of plain bread and
sandwhich.
Ingredients,
Vegetable oil,whole eggs,sugar,chicken meat,bell pepper,carrots,salt,vinegar,citric
acid,xanthan gum,artificial flavour,preservatives and permitted food colours.
Usage,
With plain bread, in a sandwhiches.
Consumer benefits,
Ready to use ,excellent taste,convenience.
Mayonnaise.

Packing,300 ML into glass jar into case.
Product Concept,
A multi purpose creamy blend which makes salads ,spreads dips,sandwhiches and
A multi purpose creamy blend which makes salads ,spreads dips,sandwhiches and
burgers taste great,main ingredients,vegetables oil,whole
eggs,sugar,vinegar,artificial flavour and colours.
Consuner benefits,
Ready to use taste great and conevient.

Dextroxe.

Dextrose is an important contributor to the companys business.Energile and
Glaxose_D a
Are two major brands which over the years have successfully gained wide consumer
Acceptance because of their unique benefits.Energile is a unique drink which
refreshes
brain and body available in five fruity flavours,enjoyes by all family members.The
energle franchise extends beyond urban cities to incluse rural areas also.
They have launched a new Energile rusbhara powder drink in 1999 which is more
refreshing than other one step preparation drink.It is available in three fruity
flavours,orange,pineapple and fruit punch,all packed in muli coloured aluminum
foil
pouches giving attractive and fresh image.
Recentaly,Rafhan best foods has acquired Glaxose_D brand.With this acquisition
Rafhan
best foods has now become a stong leader in the dextrose market.Glaxose_ D is well
established brand in Pakistan which offers instant energy during and after
illness.Toexpand the consumer base they have recently launched Glaxose_D
multivitamin.
Energile.

Main ingredients.
Top grade dextrose monohydrate.,table salt, natural fruit, sodium citrate tricalcium
phosphate
vitamin C, and permitted fioois colours.
Usage,
Dissolve 2-3 tables poons into water mix,mix well and drink.
Consumer benefits,
Refreshing taste. Instant.
Shelf life.
12 months.
12 months.
Oil.

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

In desserts we have quick sert jelly, custerd, pudding, kheer mix, and cream
powder,
which is available in variety of sizes as well as in flavours.strawberry is a famous
flavour
of the the jelly, while custerd is famous for his banana and vanilla.and in pudding we
are
well know by choclate flavour.
Rafhan desserts rank as one of the new few truly well know food products in Pakistan
.
it has not only its demand in Pakistan but has also demanded abroad.With the
pessege of
time people are showinh there great interest in these particular products.rafhan is
well
know for introducing its new flavours.and very popular,like it has introduce kheer
mix
which is the cluster of quality rice, and is available in new looks.
Rafhan desserts enjoy market leader status and continue maintain leadership
through high
quality products blended with innovative marketing and sales strategies.
Rafhan quick set jelly.
Rafhan quick set jelly.

Product.Jelly crystals
Packing.85 packet into 96 packet into case.
Product concept.
It is an exciting and east to prepare and have a delicious taste.
Main ingrediantsRafhan sugar, vegetable gum, adipic acid, potassium citrate,
artificial flavour,
potassium chloride, and foods colours,
usage.Cooked in water, refrigerated, prepared and served independentylt or in
conjunction with other desserts.
Consumer benefits.
Easy to make ,easy to eat, taste great.
Shelf life.
9 months.
Kheer mix.

Product is a custerd powder.
It is available in different packing like,
300 into packet into 36 packerts into a case.
It is famous in providing the quality .its main ingredients are.
Rice.
Refined suger.
Almonds.
Artificial khewra flavour.
Cardamom.
Usege.Cooked in milk, refrigerated and served.
Benefits attached with it.It provides a excellent quality.and rich in taste.easy to
prepare.
Shelf life.12 months.

Pudding mix

Product.Pudding mix.
Packing.85 packets into packets into a case.
Rafhan pudding is one of the best pdding of Pakistan.which is really popular aming
peoples of Pakistan.
Ingredients.Refined suger, vegetable gum, maiza starch, artificial flavour, and
permitted food colour.
Usage.It is cooked in a milik refrigerated and sewrved independently or in
conjunction. Withother desserts.
Consumer benefits.
Produce excellent quality, convenient to prepare, and easy to eat, Taste great.
Jams/chicken spreads.
Jams.Packing.
37 5 gms,glass bottle.
Usage.It is basically used for mainly in breakfast.and at evening to make snaks.
From consumer point of view.
From consumer point of view.
Irs really easy to make.and taste great. It is a junck fruits.
Shel life.12 month.
Chicken spread.Availavle in different quantities.
Usage.
It is really easy to make,I mean used with bread.or to make burger,sandwhich,and
taste great.
Shelf life.12 month.
Cater plan.

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

Cater plan products.

Serial no. products. packing.
Serial no. products. packing.

1 BF mayonnaise 4 kg into 4 jar.
2 bf mayonnaise. 1 kg into 6 jar.
3 BF mayo magic. 4 kg into 4 jar.
4 BFitalian dressing 1 kg into 6 jar.
5 BFfrench dressing. 1 kg into 6 jar.
6 BF100 island dreesing. 1 kg into 6 jar.
7 BF coleslaw dressing. 4.32 kg into 4 jar.
8 knorr batter mix. 1 kg into 65 jar.
9 knorr chicken powder. 600 gm into 10 pch.
Caterplan products.
Serial no. products packing.

10 knorr chicken bouillon paste 500 gminto 10 pch
11 knorr curry paste. 4 kg into 4 jar.
12 knorr korma paste. 4 kg into 6 jar.
13 knorr tikka paste. 1 kg into 6 jar.
14 flesta drink. 7 50 gm into 10 pch.
15 rafhan Q.S jelly strawberry. 2 kg into 6 box.
16 rafhan Q.S jelly raspherry. 2 kg into 6 box.
17 rafhan Q.S Jelly bananna. 2 k g into 6 box.
18 rafhan Q.S jelly pineapple. 2 kg into 6 box.
19 rafhan Q.S jelly orange. 2 kg into 6 box.
Serial no. products. Packing.
20 rafhan custard vailla. 1.5 kg into 6 box.
21 rafhan custard strawberry. 1.5 kg into 6 box.
22 rafhan ice cream powder vanilla 1.5 kg into 6 box.
23 BF strawberry syrup. 1.3 kg into 12 bottle.
24 BF chocolate syrup. 1.2 kg into12 bottle.
]
25 rafhan corn flour. 1.5 kg into 6 box.
26 rafhan apple filling. 3.5 kg into 4 tin.
27 rafhan canola oil. 17 ltr into 4 tin.
28 rafhan corn oil. 17 ltr into 4 tin.
caterplan of rafhan best foods ltd.
Products varieties
Mayonnaise,mato magic,1000 Iland
Dressing dressing, French dressing, Italian
Dressig,Tartar sauce & Mustard.
Bouillion chicken powder, batter mix, instant
Yakhni, chicken bouillion paste,
seasoning powder,tom yam paste
Soups chickrn corn soups,hot$sour soup,
Tamato soup, cream soup.
Sauces tamato ketchup, chilli garlic, tamato
paste, BBQ soace, soy sauce, curry . paste,tikka paste, korma paste.
Desserts. Jelly,Custerd, pudding mix, ice cream,
Powder,whipping cream,apple filling,
Strawberry syrup$chocolste syrup.
Oils corn&conola.
Places. Usages.

Duckin Donuts Donuts suger,cinnamon suger, aple
filling,strawberry filling,Bavarian filing.
KFC. Coleslaw dressing, mayonnaise,
Tamato ketchup, chilli garlic sauce,
BBQsauce and fiesta.
McDonalds. Big mac sauce, mayonnaise,tarter,
Sauce.tamato ketchup,chili sauce.

Price.

Here the firms has to consider many factors for determining the price.
Selecting the price objective.
Determining deman.
Estimating costs.
Analyzing competitors costs,
Prices,and offers.
Selecting a pricing methoh.
Selecting the final price.
Price is simply the cost plus profit of the firm.they have many competitiors in the
market.so they have considers about the competive price while selecting new price
and schemes.
PRICING STRATEGY
PRICING OBJECTIVES
Pricing of Rafhan is based on the following objectives
Profit Oriented Goals
investment. The base of pricing is the time consumed in the production process and
target revenue per day.
Sales Oriented Goals
Rafhan sets its prices in such a way to increase the volume of sales. Live save Rs.15
on 5kg of corn oil pack and Rs.10 on 2.5kg.
Rafhan usually has the policy of setting high prices since it is a leader in food market.
They have fixed prices products due to the reliability of consumers towards price.
Prices are decided keeping in view the prices of other products of same size,
category and types.
Pricing Strategies
Rafhan uses the following pricing strategies:
Geographical Pricing Strategy
Uniform Delivered Pricing Strategy
The company uses the same delivered price to be charged from all distributors.

Freight Absorption Pricing Strategy
Under this policy, the company bears all the freight out cost for FOB only.
Cash vs. Credit Strategy
All the sales of the company are on the cash basis and no credit facility is given to its
customers i.e. distributors.
Basic Method of Setting Prices
Rafhan is using the following methods for price setting.
Price to Distributors
The company provides products to the distributors for the prices decided keeping in
view the cost, the target revenue and competitors prices.
Prices Charged by Distributors to Retailers
Rafhan gives margin of certain percentage to distributors so in this way prices to be
charged by distributors to retailers are fixed.
Prices Charged by Retailers to Ultimate Consumers
Company influences prices charged by retailers. So retailers are bound to charge fix
price to ultimate consumer.

What we believes is
High price high quality.

How to set the price of the product.

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

Cash discounts.
A cash discount is a price reduction to buyers who pay their bills promptly.a typical
example is 2 /10 net 30. which means that payment is due within 30 days and that
the buyer can deduct 2 percent by paying the bill within 10 days.such discounts are
customery in nature.
Quality discounts.
A quantity discount ia price reduction to those who buy large volumes.This is given
to increase company sales.So that firm can have more revenues.
Functional discounts.
These are also called trade discount which are offerd by this particular firm.it will be
given to those who perform certain function.such as storing,selling book keeping.
Seasonal discounts.
A seasonal discount is a price reduction to buyer who buy merchandise out of
season.they offer different discount on springs and on summer.
Allowances.Allowances are extra payments designed to gain reseller participation
in special programs.trade in discount are price reduction granted for turning in a
old item when buying a new one.trade in allowances are most common .
Promotional pricing.

Company use different pricing techniques to stimulate early purchase.
Special event pricing.
It is given to increase sales.like in the month of ramzan.
Low interest financing.
Instead of cutting its price.the company offer customer low interest financing.
Warranties.
Rafhan best food is increasing its sales by adding a service warrenty.if there product
will spoil before the due date inspite of proper storage then they give proper
warranties for them.
These are some way of promotional pricing which are charge by the company.
Image pricing.
They chage high price of of there existing image of best food.and now with the
merger the levers brother.they tries to cash their name.
Place.

Place
Rafhan Bestfoods Ltd.
Shahpur Interchange
14km, Multan Road
Lahore Pakistan
This particular company has almost 1500 distributors out of which almost 900 are
active distributor and other600 are those toward which a company has a DR
balance
Its manufacturing plant is in PERNAL.
Its warehouse is in SADDHUKI.
All the manufacturing is done in the pernal from where it is shifted to saddhuki
Typer of retailers.
Speciality stores.Thes are some special store which buy in hugr quantity.but the
important thing for them is that your product should be visible there.like CSD
stores.
Departmental stores.These are the stores in which each line of the product is
shown separately,like clothing,home furnishing,house hold etc.example are
pace,HKB,RAHEEM STORE.
Super markets.These are relatively large, low cost, low margin,high margin.which
are desgined to serve the total need of the customer.
Then ther are some.
Discount stores.Convience stores.
This is something about the markets where the products of rafhan best fiood
prevails.through these market they sell there products.
Distributors..

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

Source (marketing dept)

DISTRIBUTION NETWORKS
LOGISTICS
They have their own M.T. Pool and they supply products at their own transport upto
Distributors wholesalers as per agreement.
NUMBER OF DISTRIBUTORS
They have 500 distribution all over the Pakistan, distributors are responsible to
provide product to wholesalers retailers and customers. They have fare price shops
at their factory/plants to provide products at ex-factory rates to their employees.
at their factory/plants to provide products at ex-factory rates to their employees.
14.1 DISTRIBUTION STRATEGIES
Rafhan uses the following multiple channel of distribution.

Consumer
Retailer
Distributor
Company
Retailer
Consumer
Wholesaler
Company

INTENSIVE DISTRIBUTION STRATEGY
Rafhan uses a lot of distributors and retailers to supply its products in each market
where the final customer might reasonably look for it. While appointing a distributor
for a particular area, management uses its own judgement to select such a person
that has a potential to operate effectively.
(Source : M.T. Sec and Sales)

ORDER PROCESSING
On receipt of order, head office prepares a delivery order and sends to factory,
factory office prepares delivery challan, one copy of the challan is sent along with
the truck of luggage. One copy of delivery challan is sent to head office. On the basis
of delivery challan invoice is prepared and sent to party by the head office.
MARK UP
It is a company policy; profit should not be less than 40%. They will give 2% extra
commission on company price on meeting their Dec. 2000 target through claims.

(Source : Marketing & Distribution)

promotion
Promotion consist of a diverse collection of incentive tools,mostly short
term,designed to stimulate quicker and greater purchase of particular
product/services by consumer as the trade.
Company logo and labeling.Company logo type is one of the their major
products.But not on products woth the small laels.where the space is needed to
present both information required by the government and other information they
believe is helpful to the consumer.
Company name or the logo type is usually shown in most prints add in magazines
and newspapers,however they do not show them during television
commercials.before my internship I also dont know about the best foods logo.
LABELING
Rafhan is using two types of labels:
Brand label
Descriptive label (bread spreads, yakhni, corn oil, energile etc.

ADVERTISING STRATEGY
MEDIA USED
Rafhan Bestfood Ltd. using radio, TV and Billboards and newspapers for advertising
purposes.
ADVERTISING BUDGET
They have allocated 35% of marketing budget for advertising.
FACTORS FOR DECIDING MEDIA STRATEGY
Which one is more effective
Cost benefit
More access
PROMOTION CAMPAIGN
Promotional activities provides chance to company to communicate with the
potential consumer to Beat the drum about it products.
Rafhan uses the following promotional methods.
Rafhan uses the following promotional methods.
The company sets up the store displays and sales officers make sure that items
displayed are properly arranged so that they can look attractive on eye contact
level.
Company arranges their stalls in the exhibition at which the products are displayed
and sold at discounts.
Sometimes the company enters in the cooperative advertisement with other
companies and the logos of such companies are printed on Rafhan gifts that are
given free along with the product of those other companies.
The company gives off seasonal schemes of discount to distributors with an
objective that the benefit of discount should be passed to retailers and wholesaler.
Other sales promotional techniques adopted by Rafhan includes T.V. Programmes
i.e. Knorr Kay Zaikay sponsored by the company. .


TRADE PROMOTION SCHEMES
Corn Oil (all packs)
Trade Incentives for Retail
Rs.30/case on primary secondary sale
Primary sales on lifting basis
Secondary sales through claims
Quantity discount (through claims)
Rs.15/case on buying 5-15 cases
Rs.20/case on buying 16 and above.
Distributor / dealer 1.5% extra commission on company price on meeting there
incentives December 99, through claims.
Canola and Sunflower Oil (all packs)
Trade incentive for retail
Rs.30/case
On lifting basis through invoices
Quantity discount (through claims)
Rs.15/case on buying 5-15 cases
Rs.20/case on buying 16 and above cases
Distributor / dealer 1.5% extra commission on company price on meeting their
target through claims.


PROMOTIONAL BUDGET
They incur 45% of the marketing budget on promotional activities.
PUSH VS. PULL STRATEGY
They use the combination of both push strategy as well as pull strategy.

There are different methods of promotions which are used by the rafhan best foods.
Promotion methods.

Advertising.
Newspaper .
Magazines.
Television.
Radio.
Road display.

Sales promotionCoups.
Premiums.
Samples.
Trade shows.
Co-operative.
Personal selling.Order gelter.
Order takes.
Sport sales.
People sales force.
Publicity.News.
Features.
Others.
Part six

Company accounting.

Finance system.

Accounting policies.

Basis of preparation.The accounts have been prepared on historical cost abd are
in accordance with the requirement of companies ordinance 1984,international
accounting standard applicable in Pakistan.
Revenue recognition.
Revenue from sales is recognized upon dispatch of goods to customers.
ACCOUNTING CONVENTION:
These accounts have been prepared under the historical cost convention.
STAFF RETIREMENT BENEFITS:
The company operates provident fund scheme for its permanent employees. Equal
monthly contribution are made, both by company and employees, at the rate of
8.33 % basic pay and dearness allowance for those employees who have served the
company for the period less then five years. For the employees who have completed
the five years or more of service, contributions are made at the rate of 10 %.
The company has also created pension ad gratuity fund schemes for its permanent
management employees. The pension scheme provides lifetime pension to retired
employees or to there suppose. Contribution are payable to the pension and
gratuity funds on a monthly basis according to the actuarial recommendations.
Actuarial valuations are conducted annually.
COMPENSATED ABSENCES (LEAVE)
IAS 19 (revised1998) required that liability in respect of accumulated compensated
absences (leave) of employees should be accounted for in the periods in which these
absences are earned. According to the previous accounting policy of the company
these absences were accounted for on payment basis. Accordingly management has
decided to change the accounting policy of the company.

TANGIBLE FIXED ASSETS & DEPRECIATION
Operating assets are stated at cost less accumulated depreciation. Leasehold land is
amortized over the period of the less Capital work-in-progress is stated at cost.
Depreciation on fix assets is charge to profit and loss account applying the straight
line method whereby the cost of an assets of written off over its estimated useful life
full years depreciation is charge on addition except major addition or extension to
production facilities which are depreciated on prorate base fro the period of use
during the year. No depreciation is charge on assets disposed off during the year.
ASSETS SUBJECT TO FINANCE LEASE
These are stated at the lower of present value of minimum lease payments under the
lease agreements and the fair value of assets acquired on lease. Aggregate amount of
obligations relating to assets subject to finance lease is accounted for at net present
value of liabilities.
Amortization of leased assets is charged to current years income as a part of
depreciation.
STORES & SPARES
Stores and spares are valued on a weighted average base.
STOCK IN TRADE
Stock-in-trade is valued at the lower of cost and net realizable value. Cost is arrived
at on weighted average basis.
FOREIGN CURRENCIES
Foreign currency transactions are converted into rupees at the rates of exchange
prevailing at the date of transaction.

TAXATION
Consistent with prior years provision for current taxation is based on taxable
income at the current rates of taxation after taking into account tax credits and tax
rebates available, if any, or the minimum tax at the rate of 0.5 percent of the turn
over, which ever is higher.
REVENUE RECOGNITION
Revenue from sales is recognized on dispatch of goods to customers. Sales are also
recognized when the company specifically appropriates deliverable goods against
such confirmed order where payments are secure.
INVESTMENT
Long-term investments are stated cost less provision for diminution in value.
Short-term investments are stated at the lower of cost and market value on a
portfolio basis.
Sources;(company annual report)
Rafhan best foods.
Balance Sheet.
2001. 2000.
Tangible fixed assets. 214,268 226,632
Intangible fixed assets 219,281 235,17 1
Long term loan. 62 103
Current assets.
Stores and spares. 12,148 10,068
Stock in trade. 148,141 191,936
Trade debts. 344,994 201,7 06
Advances,depositsprepayments and receivables. 45,238 51,682
Cash and bank balances. 26,990 2,647
Total current asset 57 7 ,511 458,039
Current liabilities.
Current liabilities.
Cuirrent portion of loan and finance lease. 87
Short term running finance. 17 5,836 31,985
Deposits,creditors,accrued liabilities. 150,7 88 131,07 4
Taxation. 27 ,649 129,505
Dividends 98,697 52,163
Total current liabilities. 452,97 0 344,814
Working capital 124,541 113,225
Capital employed. 558,152 57 5,131
Share capital and reserves.
Share capital. 61,57 6 61,57 6
Share preminum. 24,630
Reserves. 25,396 7 66
Unappropriated profits 452,396 481,240
Total share capital and reserves 539,368 568,212
Long term liabilities. 18,7 84 6,919
Capital employed. 558,152 57 5,131

RAFHAN BEST FOODS.

INCOME STATEMENT.
Rs Rs
Sales 1841,358 1,484,604
Cost oF sales 1,249,608 931,248
Gross proFit 591,7 50 553,356
Selling and administeration exp 281,356 202,487
General and adm exp 102,7 84 58,260
Financial exp 30,144 38,253
442,034 329,233profit before other income 149,716 224,123
other income 9,275 4,198
profit before taxation 158,991 228,321
Taxation 70,840 88,300
Profit after taxation 88,151 140,021
Unappropriated profit brought forward 481,240 397,253

AppropriationsInterim dividend 18,473 12,315
Proposed dividend 98,522 43,719
Unappropirated profits carried forward 452,396 481,240
Earning per share 14 23
Sales deptIn the refhan best foods products are categorized by 2 categories
1 CATEGORY A
2 CATEGORY BThe following products are under the category of A.
DEXTROSE. BOUILLON.Energile chicken
Energile red syrup puloa
Energile rasbhara curry cubes
Energile sporty yakhni
Zaiqa masala
DESSERTS. SOUPS.Baby custard bag soups
Quick sert jelly noodles
Kheer mixx
SAUCES. OTHERS.Knor mayonnaise corn flour
Knor s spreads
Then comes the category B
OILS. SAUCES.
Corn tomato
Canola chili.
Cornola
DEXTROSE. DESSERT.
Gloxose_D rte jelly
jammy
OTHERS.l.soaps
In the same way they have categorized the cities also
CITY 1(for high demanding areas)
CITY2 (for middle demanding areas)First comes the city 1
KARACHI LAHORE
HYDERABAD FAISALABAD
SUKKUR GUJRANAWALA
QUETTA RAWALPINDI
MULTAN ISLAMABAD
PESHWAR
The following cities are under category B.
DADU DASKA
DHERKI GOJRA
GHOTKI GUJRAT
JACOBABAD JARANAWALA
KHAIR PUR MIRUS JHANG
KHAIR PUR MIRUS JHANG
KHUZDAR KHSUHAB
NAWABSHAH MANDI BAHAUDDIN
MIANWALI SHEIKHUPURA
TOBATEKSINGH KO ADDU
WAZIRABAD VEHARI
BAHAWALPTR ABBOTABAD
CHAKWAL DINA
GUJAR KHAN KOHAT
SADIWABAD DG.KHAN
R.Y KHAN MIR PUR A.K
WAH CANTT MARDAN
Now I will try to explain you the procedure of sales how the sales is to be made by
this company
PURCHASE ORDERWhenever any distributor needs any stock then he sends the
purchase order to faisal who deals with the purchase orders who after checking the
position of stocks in the computers make the GDO (goods delivery order) this gdo is
passes to the warehouse through which shipment is send to the distributor invoices
of the stocks are also made by this person zeeshan.
TRADE DEALSUsually premium is given to the distributor to fasten the sales
which is called the sales deals these incentives are given in such terms like if you will
sale the 12 dozen of refhan corn oil then you will be entitled to have I tin free usually
these are given to those retailers who sells company products more then the targets.
TARGETSTargets are revised annually first then monthly then weekly you can take
the example og annual target lets say I 5 lack ton is the sale of chicken cubes last
year then the m.d may set the target like 5% of 5 lack and then 525000 becomes the
new target for the coming
Year
INCETIVES.There are the slabs for the incentives like it will start from the 7 0% if
the retailer sells the 7 0% of the targets from that he will entitled to have a incentives
higher the % of sales higher will be the incentives from140% the slabs become same
incentives are also given in term of cash like todays there is a offer on energile if you
sell energile up to that limit then you will be able to get 7 000rs actually these are
the schemes through which the actual price of the product comes down for
shopkeeper like when you get I tin of oils free from the sale of 12 then automatically
your price comes down.
DISCOUNTSDiscount is also the type of incentive which is given to retailer you
can understand it from this scheme
Distributors incentives (valid for both energile galaxose_d) distributor achieving
their 100%targets for June by Junes closing will get extra discount of 3% on invoice
price through claims so please take maximum advantage of this incentives
This is the discount offer u can have an idea from it.
CLAIMSClaims are given in the sense like there is the offer sell 3 get one free when
thee offer are given by the company then naturally shopkeepers get that I free
energile from the distributor and that distributor get that from the company not
from his own pocket and these claims are accumulated for the month and then these
are adjusted at the end of the month
TYPES OF SALES.
1primary sales
2secondary sales
PRIMARY SALES.It is that sales which is made directly made by the company like
when the company deliver good directly to the shops.
SECONDARY SALES.Secondary sales are those, which are made through retailer
One thing should be clear here the sales that are made through retailer are got under
the category of secondary sales.
Key accountsThese are of two types
Csd(canteen store department)
Usc(utilities sales corporation)These are the two types of primary sales that
are directly made by the company
According to the lever brother this key account sales should be 35% of the total
sales but the present picture is something different because at present it is just 7
%to8% at this recent meeting which was held on 24 June the main focus point was
that to increase the percentage of key account.
Csd.There are only 12 csd in Pakistan which are in the main cities like
Lahore,islambadad.Karachi,peshwar
Usually this facility is provided to army officer thats why these stores are in the
kent area now they are planning to increase the no of csd so that through them they
can increase their sales.
Usc.It is further divided into 2 types
1 small utilities store
2 departmental storesDepartmental stores are like you can say hkb rahat store
2 departmental storesDepartmental stores are like you can say hkb rahat store
and small are those like which are in your town.
Rsf (rolling sales forecast).
In rolling sales forecast you will make the projection for the next year it mean to say
is that what stocks level you will needed for the next year and these projections are
determine from the last year volume first of forecast is made for the year then for
month and then for a week.
Targets.Targets are yearly goals that you have to achieve you set the target before
the start of year targets are further divided monthly, weekly.
Latest volume.Latest volume comes from the projection actually you do not keep
or made manufacturing at the same time for the year first of all you make the
projection like you can say that 1000 is your monthly requirement for July then
250 will be you weekly stock supply which you must have to supply to the retailer
manufacturing is made weekly because it cost you so much so company puts its
order according to requirement all it is done to reduce the storage cost.
Closing.In these days people are very busy because of closing they made closing
on monthly basis at every end of month they revise their accounts, books, and
prices
Quality policy
(To meet our expectations and needs refhan best foods is committed to
developed ensure consistent supply of affordable convenient safe and
high quality products)
MISSION STATEMENT.1 our company is a most successful in proving day to
day necessary products of daily life who has a unique relationship with this country
2 we chose the selective people and polish them these people with their capabilities
tries to increase the business by 10%
3 we provide everywhere everything to the people with the certification of health
4 we try our best that our business should be simple and in a advance pattern
5 we try our best to make it possible what our customer needs
6 with the regular supply chain we make a deep flat linkage between supplier and
customer
7 our rules and regulation are based on safety health, envirnment protection,
TRADE MARKTINGTrade marketing is the coordination between markting, sales
and production actually first of all marketers plans what to sells and how much to
sell then the production is to be done in a plant which is to be sell by the sales people
TRADE MARKTING
DEFINATIONOrientate the organization towards customer and channel focus
Voice of sales in cross functional groups
Role differs from company to company, reflecting the relative diversity of trade,
customer and the business trading philosophy.

TASK AND RESPONSIBILITIES.
1 input to brand plans.Ensure input of shopper, market, trade and customer data
to brand specific plans
Brand performance feedback
Branchwise sales feedback
Qualitative revies
Provide regular input to brand innovation plans
Compile and maintain brand and trade fact book (historical volume and sku
pricing.sku contribution.mergins, promotion evaluations.pop summary.
2-channel/pop strategies.. Define channels (customize unilever channel tree)
. Understand channel,pop dynamics
. Shopper behaviour understanding
. Trade survey.triggers.barriers.satisfaction.
4 define availability and visibility targets.
Set targets and monitor progress
Develop merchandizing strategy based on channel and pop attributes.
5 quarter rooling activity plans.
. Design plan. Cost. Agree and implement al trade activation
. Monitoring is responsibility of field sales
Compile post evalution of all activation plans.
6 pricing and trade terms.
inputs to commercial on margin strategy
Recommend specific trading terms
Projects munafa
Track trade margin stucture of competition.
7 managing trade support budgets.Regular evalution of all promotional
activities compare results against targets
.
. Recommend total sales support budgets (tpr.merchandizing, branding,
sampling.incentives)
Monitor and control cost.
7 communications.
design and implement all sales support literature
, sales pesenters
munafa pamphlets
ensure regular flow of accurate information
internally to sales and othe functions
activation updated
ensure accurate and upto date competitor activity tracking
8 volume forecasting.
responsible for reliable and accurate input into companys supply chain planning
system.
Advise marketing on demand potential e.g free availability estimates
Trade stock pipeline analysis for input in sop process
Provide feedback to markting.e.g branch volume estimates
TRADE PROMOTIONS.Today we have to plan to work on trade promotions in
trade promotions we have to decide that what %we have to give up to the shops in
trade promotions we have to decide that what %we have to give up to the shops in
this they have to decide the discount% so that they can promote their market.
MARKET VISIT
RETAIL AUDIT
. SALES
SALES REVENUES
Rafhan Bestfoods have increasing its instead of recession in economy in 1997 -98
Rafhan Bestfood sales increases 25%. In 1998-99. Sales increase 36% from previous
one.
13.2 PERSONAL SELLING
Rafhan Bestfood some time use this strategy whenever they introduce new thing in
market they used to go customer first. It is sort of market test from where they can
judge the success of their how product.
13.3 FUTURE FORECASTS OF MARKET
Although the economy of the country continues to be under pressure with ongoing
increase in utility and fuel prices as well as slowdown in manufacturing and service
sectors. The implementation of general sales tax at the retail level, lower trade
liquidity, and declining consumer disposable income will result in an even more
challenging business environment. But there is a significant potential for packaged
food in Pakistan and opportunities for export to the Central Asian States. There is a
healthy business growth in the future years.
13.4 SALES FORCE
Rafhan has a big sales force. Almost 300 persons are in their sales force. Rafhan
policies are to maintain the sale so that they prefer experienced sales person.
13.5 SALES FORCE TRAINING & DEVELOPMENT
They recently started sales force training and development because they know feel
the importance of training. Most of the countries are giving stress on sales force
training and spending lot of money on their training and development.
13.6 SALES TARGET
Rafhan Bestfoods set their sales target on monthly and annually basis. These target
are divided into zone and then into cities level.
13.7 SALES INCENTIVES
Those incentives which motivates and person to sell more. incentives in term of
cash like for sales force if a sales person achieve their target then their incentive is
like this

(Source: From Sales Department)

Target Achieved 80% 100% 120%
Incentive Offered on SA 50% 62% 100%
the incentive offered is the percentage of the salary. As sales person get closer to the
target there is increased in incentive.
13.8 INCENTIVE TO DEALER
They offer 2.0% extra commission on company price to their distributors on
meeting sales targets whenever claim.

MARKETING RESEARCH.
On 2 th july for the first time they ask me to have a marketing visit. My boss mr
chohan ask me and come with the finding that trade schemes are offer by the
mitcheals national meegi in ketchup actually they sent me on the market to let know
what trade schemes are given by their competators after a 4 hour market visit I
have come with the finding that they are offering 12+1 so thats why our company
decided12+2 so that they can have a larger share

While my stay at rafhan best food.they have sent me at market visit.the
purpose of my viusit is to check whether the distruibutor is providing
the proper market coverage in term od proper supply of goos.and to
check whether he is passing the scheme properly or not. and then I have
to repor6t directly to the (general manager of sales) .
It was a very good experience.The areas which are assigned to me are.
Shahdra.
Mureedkey.
Kamonkey.
Daska.
Wazirabad.
Gujraat .
Lala mosa .
It was the 7 day market visit.and it was a total learning tour. Through
which I practically learnt about the relationship between distributor
and retailor.what are the flaws in the system of distribution.and what
the problem face by the retailers from there distributor.
MARKET VISIT REPORT.

Retail Audit Details
Prepared by: Usman Rana
OBJECTIVES:
To find out the availability of stocks.
Shelf spacing of key products like Custard, Energile, Glaxose-D, etc..
To Check out whether the schemes are properly Given to Retailers by our
distributor or not?
OVERALL OBSERVATION:
During my seven days field visit (4 -10
t h July ). I hav e obser v ed t hat ov er all
av ailabilit y of st ock is not as good as it has t o but . Shelf spacing is t he ar ea wher e we
r eally need t o focus. As far as for t he t r ade schemes offer ed by t he company , I found v er y
poor r esult s, almost in all ar eas. The schemes ar e not pr oper ly giv en out t o t he t r ader and
t he communicat ions bet ween DSF/S. O and r et ailer s was not encour aging.

SHAHDRA & MUREEDKAY

Areas visited in Shadra
Main bazaar, GT. road, Baigumkott, Rana town, and Vandala bazaar
Shops visited = 60
Category A 23
Category B 18
Category C 19

Findings
Here what I have observed is that distributor were not providing the proper market
coverage to this area. Availability and visibility both were very poor. Same is the
case with the schemes. I could not find a single trader who was happy with the
distributors. People here prefer to buy from Lahore because of low prices. Now the
question arises why the people are willing to buy from Lahore? The reason is simple;
prices are low in Lahore as compare to these towns. Actually what the wholesaler is
doing that hes passing the chunk of scheme to the traders, which he receives, from
the company. If the distributors of Shahdra and Mureedkay will provide proper
coverage with the full schemes, then there would be no need for the traders to buy
from Lahore.

KAMONKY
Areas visited
Gt. Road, Main bazaar, Jail road.
Shops visited = 20
Category A 3
Category B 15
Category C 2
Findings
The availability of products was not very good. The need is to provide proper
coverage you can have an idea from the analysis. That how far it is way from the
benchmark but when you talk about the schemes then situation is darker here. What
the distributor is doing that if there is an offer of Rs/10 for any product, he keeps
Rs/8 in his pocket and offer only Rs/2 as a discount to the trader.
DASKA
Areas visited
Main road, Ghala mandi, Main bazaar
Shops visited = 40
Findings
Really pleased to inform you that the market situation in this particular area is very
good. People are very pleased with their distributor. They receive regular supplies.
Salesmen are very active here and the Retailers are enjoying the full schemes
offered by the company. In the nut shull trader were pleased with the service
provided by their distributor. I am glad to inform you the visibility of product is
also very good here

GHAKKAR & WAZIRABAD
Areas visited in Ghakkar
Gt. Road, Main bazaar, Ghala mandi
Shops visited = 19
Area visited in Wazirabad
Shops visited = 20
Findings:

In the market the availability of stock was very good Stocks are provided at their
regular time but visibility of stocks was not good. I saw only custard and cornflour
on the shelves. The same was case with the schemes. When I told them about the
current schemes, they got really surprised. My observation was that distributor is
not passing the schemes properly. He amends them and offers them on partial basis.

SHEIKHUPURA
Areas visited
Main bazaar, Ghala Mandi, Khalid Road, Ghung Road,
Shops visited = 40
Findings.
I observed the availability and visibility of stock was good. The problem area was
schemes like other cities. I visited one of main super store of Sheikhupura, and
asked him about schemes. He called the distributor and asked him about the current
schemes of corn oil 10 Ltr. Distributor told him that the schemes
was Rs/25 for2 tins but in actual the schemes is Rs/30 for 1tin. You can have idea
from this that the schemes are not properly given out.

GUJRAT & LALA-MUSA
Area visited in Gujrat
Main bazar, Jail road, GT road.
Shops visited = 40
Newer Post Older Post
Shops visited = 40
Area visited in Lala-Musa
Kachari road, Main Bazar, GT road
Shops visited = 39
Findings
The market is same like other cities here
Availability of stock is good
Visibility of stock was poor
Schemes were not properly passed out
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