INTERNSHIP REPORT ON

SHAMA GHEE & COOKING OIL HGGM

Ali Ans

ROLL NO. BCM-13-32

PHONE: +923015063152

E-MAIL ID: ali898840@gmail.com

 Preface

The report depends on promotion of HGGM and focus on its promotion techniques or plans. I
have attempted my best to make this report however much dependable and authentic
as could be expected. The report is finish of awesome exertion. I have buckled down
with commitment a request to introduce a high quality report.
A considerable lot of my friends helped me in gathering data likewise in planning of report. I trust
this is a high quality bona fide work. Marketing strategies of HGGM Limited in this report is
simple and refreshed. I have attempted my best to satisfy every single moral prerequisite a request
to show a fair report. Hafeez Ghee and General Mills Limited gave me exceptionally Solid data
that identified with their marketing procedures for this I am extremely appreciative to all
authorities of Hafeez Ghee and General Factories Constrained. In the shot time I have done very
good work and its credit goes to Mr. Azhar (marketing manager) who made me able for
this. I belief that everybody can get advantage from the report exceptionally associations
who are looking for consumer satisfaction. I respect the recommendations for the change
of the report. Thanks to all the readers.
 Executive summary

The time that I have spent HGGM Limited in the regional office Multan it would be most creative
and terrifying knowledge of my practical life. Before that I told about the detail of the report I
would like to explain the summary of the report. The summary of the report is to given the idea
about the contents and exertion made behind the conclusion of the report to reader. It was given
me to visit HGGM to view the working environment, function, marketing procedures and behavior
of doing work. Internship was started from 10-07-2017 and end on 21-08-2017, this period was
the real experience of my life.

In this report id told about the different departments of HGGM Limited like Marketing
Department, Account Department, Human resources department, Production department, Sale
department, Admin department and many others departments that work in HGGM Limited. This
report also explain the policies and procedures of HGGM.

In this report also include the attendance procedures and group insurance that is provided by the
company to its employees. About the company culture also included in the report. How we can
motivated to the employees it is also included in the report. In the report also tell about the SWOT
analysis of the HGGM Limited. That is an important part of any organization. Some others things
are included in the report

I also hope that this is a simple, updated and purely focused on marketing strategies
of Hafez Ghee & General Mill Limited. I have tried my best to fulfill all ethical requirements
an order to present an unbiased report. Hafeez Ghee and General Mills Limited gave me very
Strong information that related to their marketing strategies for this I am very thankful to all
officials of Hafeez Ghee and General Mills Limited.
 Mission
We believe in stepping forward into the future, striving to offer quality of product within the
food industry that will change the status quality. Our expertise in manufacturing ghee & cooking
oil, have been proven in all Pakistan. You know that, when you are using our brand, you will get
the best of everything; (taste, quality, and nice packing)
 Vision

We want to make a chain from producer to consumer and make our product of highest quality
and affordable to our customers. For us our customers take precedence & we take no
chances with their health & satisfaction. We ensure safe, high quality products for our
customers by being quality conscious and consistently improving our quality systems
of distributors, retailers, outlets & direct sales.
 Hafeez Ghee and General Mills/Shama Ghee

In Multan this ghee manufacturing unit is established in 1989. Professionally qualified architects
designed this building. Local fabricator was designed and installed the machinery and plant.
HGGM Limited office is located in Bahawalpur road, near bypass chowk Multan. The food
products is producing by HGGM for both industrial users and customers. For quality environment
management system and food safety ISO 9001 22000 14001 Certification is acquired by HGGM
Limited. The company is committed to strictly quality standard in all its operation because it is
following the Management System. Rs.2 billion is the total turnover of HGGM. HGGM sold
product to the consumers through local area.
In August 1994 HGGM was incorporated. Building, Plant, machinery and tools have been made
on regular basis. Since the necessary additions to the Building, Plant, Machinery and equipment
have been made on regular basis. Nowshera, their brand SHAMA is manufactured and packed in
this unit under this agreement.
It is located in the key region of Southern Punjab in Pakistan and one of the most progressive ghee
and cooking oil unit. HGGM was a very small unit when IMGC bought it in 1994 with ashen
capacity of a mere 800 MT per month. For becoming one of best ghee unit of the country so for
the upgrading units IMGC invested large amount. The Annual Capacity of the unit is now 36,000
MT with recorded sales of Rs.2 billion. It has a crushing capacity of 200MT per day with
production of 40 MT of crude edible oil and 150MT of oil cakes per day. By this HGGM produce
20 percent of the raw material requirement in house and HGGM can play important role in oilcake
market. HGGM covers Northern and Southern of Punjab area with good marketing network. The
network has over 60 distributors in all big and small towns spanning 1000 miles. HGGM Limited
has its own sales and marketing wing that services in Multan city. HGGM Limited is considered
to be the marketing leaders in the Southern Punjab region with the innovative campaigns and
publicity outlets.
Brands Kind of HGGM
Different brand of HGGM are Shama ghee & cooking oil, Hafeez ghee, CSD ghee & cooking
oil, Utility Ghee & cooking oil, Shama puff , Crude oil (sunflower, canola), Shama soap
Marketing Department

Numbers of employees works in marketing departments

Marketing Departments Dissimilar Functions

Different Marketing policies

Marketing segments

Marketing Mix

Numbers of employees works in marketing department

Three employee are do work in the marketing departments of HGGM. Atif Qureshi is the
marketings manager. Marketing function & deals accomplish by him.
Function of Marketing Department
Marketing department of HGGM performs several functions that are
1. To Focus on the Consumers
2. To focus on Competitors
3. To Find Outside Vendors
4. Generate New Ideas
5. To Manage a Budget
6. Set the Marketing Strategy
7. Analysis of price
 Marketing Strategy
Vision that is an important part of the any organization through which organization considered
itself in the future time. We can also say that it is desire of every organization. This is the future
strategy and it must be very clear and SMART (Specific, Measureable, Achievable, Realistic and
Time Framed). It is better how much it is SMART. These future plan and strategies are made by
the top management who always play a role in the market for the survival of the firm. To achieve
their goals they made different strategies. One of important strategy is marketing. Good marketing
is necessity of every organization in the modern world. Marketers use many types of marketing
tools.
HGGM Limited used two types of marketing tool that are

Above the Line

They use different advertising and promotions on TV and Cable.

Blow the Line

They use Poster, Boarding, Banners, Hangers, Wall Clocks, Key Chains, Diaries,
Calendars, Pump Flits, Brushers and Stickers
Competitors of HGGM Limited
These are the competitors of HGGM that are QADIR cooking oil and banaspati, HOOR cooking
oil and banaspati, SUFI cooking oil and banaspati , SOYA supreme cooking oil , DALDA cooking
oil and banaspati, SULTAN cooking oil and banaspati
Advertising Objectives
To make the HGGM products popular brand in the Pakistan. So it is main objective of HGGM.
Ranking with respect to Market Share
1. Sultan cooking and ghee
2. Shama cooking oil and ghee
3. Hoor cooking oil and ghee
4. Dalda cooking oil and ghee

Budgeting

For the promotion of the shama brand 2.5 crore annually spend by the HGGM Limited. If they
need of more promotions then one crore per annum can also be approved from head office Karachi.

For Distributors
When the distributors achieve their target then 2 rupees on per kg is given to them. If any of them
fails to achieve his target then these incentives are not paid to him. HGGM Limited have trade
scheme for example if the market price of 16kg bulk pack is 1610 they given to the distributors on
1500. To keep the distributors motivated they introduce different kind of trade scheme.

For Consumers

They also introduce different kind of offers for their customer, for example buy shama product
and get another product absolutely free.

Shama Ghee + Rooh Afzah

Shama Ghee + Lux Soap
Shama Ghee + Supreme Tea

Marketing Mix

Price

Pricing Objectives
Market penetration is the main strategy of HGGM Limited means they charge affordable price and
want to have good quality standard. Because they want expand their product in other market

Demand
Currently the demand of their product is very high which covers the demand of Southern and
Northern area the demand is almost 3000 MT per month.

Total Cost
They did not tell about their total cost on the product they want to keep it in secret. But they charge
on the market basis and get very high profit than their cost.

Competitor Prices and offerings HGGM

 Brand Names Weight Prices
Shama Ghee/Cooking Oil 5kg/5kg 800/900
Hoor Ghee/Cooking Oil 5kg/5kg 840/880
Qadir Ghee/Cooking Oil 5kg/5kg 845/860
Dalda Ghee/Cooking Oil 5kg/5kg 935/925
Sultan Ghee/Cooking Oil 5kg/5kg 845/855

Final Price
They usually sell it to their distributors and these distributors further sell it to retailers

List price of every product

Tin 16 KG Rs:2500

Pouche 5 KG 800

Bottle 5 KG 900

Place

Distribution channel
People who involve in supply chain management are whole seller and retailer etc.
Target Market
The target market of Shama is Southern and Northern areas.
Consumer Distribution Channel
The most important for every organization to maintain its good distribution channel. Because
distributors present the product and create the image of the product in front of final consumer.
The HGGM Limited sell their product distributors and give them target. Those who achieve their
target some incentives pay to them by HGGM Limited. The further process is distributors sell
product the whole seller and whole seller sell it to the retailers and then these retailers sell the
product to the final customers.

Promotion
Advertising plan
HGGM Limited use the promotion strategies like above the line and the blow the line. In which all kind of promotion
include like Posters T.V ad and Banners and etc.
General publicity
For the general publicity they mostly used two kind of tools

1. Items
The things mostly used for the general publicity are writing pad, key chain, walk clock, wrest
watch, cups, pens, wallets etc.

2. Activities

Sponsorship
Different kind of events are sponsored by SHAMA Ghee like Cricket, festivals, Islamic events and etc. it is also
sponsored to different non-government organizations, Bin qasim centre, Fatima Foundation and SOS children
Village

NGOs SPONSORSHIP
DISTRICT GOVERNMENT SPONSORSHIP
BIN QASIM BLIND CENTRE
FATMID FOUNDATION
HERITAGE COLLEGE FOR HIGHER EDUCATION
AL NOOR TRUST
SOS CHILDREN VILLAGE
Shama Ghee Display Competition

In display competition retailer keeps shama products in front of his shop for the defined time period like one week,
two week. The sales manager visit their shop and give the prizes to winner.

Give away
If any special person visits to HGGM Limited, then some other item or Shama ghee give him as
a gift. They used many other method for the promotion of their products.

Others
Banners on shops, Road hurdles and many other technique for the promotion.

Product
Product names
The main products of HGGM Limited are Shama cooking oil and Shama banaspati. The other products of HGGM
Limited are Shama soap, canola oil, crude oil and etc.
Quality
Shama uses quality ingredients like vitamin A and D which has low cholesterols. The quality of
Shama products is better than other competitors. Nowadays people want low cholesterol ghee
because they are health conscious. So Shama products have better quality.

Scope of product
There is two segment, first is industrial segment and second is household segment. The large
demand of Shama products are industrial segment because Shama products are popular in
industrial sector the other segment is household.

Shama Pure Cooking Oil with Vitamin A & D Low Cholesterol Available in Pet Bottle (1, 3 & 5 Liters)
Shama Banaspati with vitamin A and D
Available in 1 KG and 5 KG pouch in dispenser pack

Shama Banaspati with vitamin A and D

Available in small pack 5 KG and 2.5 KG Bucket

Shama Banaspati with vitamin A and D

Available in small pack in 5 KG and 2.5 KG

Shama Banaspati with vitamin A and D

Available in 1 KG pack

SWOT Analysis
Strength
The main strength of Shama brand is that it is only brand that has been largest selling brand
in NWFP and Afghanistan
Due to maintenance of quality, environment and food safety HGGM Limited five times
awarded with ISO standard
HGGM Limited is the first to get ISO 22000 certified ghee and cooking oil manufacturing
in Pakistan
 In the government utility stores utility ghee is also provided by HGGM Limited
Weakness
The main problem with Shama is that its packaging is very old. Nowadays people considered that good
packaged brands have good products.
Shama also suffer with image problem. Because of this it is consider as an old brand.
There is no innovative change in the packaging since 1994.

Opportunity
The company can get more cash by introducing new products because they have large
number of shares in central and northern areas of Pakistan
People in the metropolitan are persuaded towards the branded products
To gain market in health conscious people the fat free banaspati is still popular
People are switching to brands offering vitamin and cholesterol free qualities because they
are becoming health conscious
With health benefit emotional attachment should also be show
Threats
Sham will decline in market share because market is being entered in Sunflower oils and
Soya bean canola that are mostly bought by the health conscious people
Due to the fluctuating in the world oil prices the whole market of oil and banaspati is falling
The upper income customers consider that banaspati is an old fashion
With passage of time many competitors are entered into the market
These competitors are high risk with respect to the quality and price factors

PEST Analysis
Political Analysis
In Democracies the ruler party to show that they can guard the health of their people. Undertaking
the health problem requires the long run thinking, complex partnership and innovative form of
organization. Health suffers severs consequences in war and other complex situation.
Economic Analysis
Wealth creates health and health creates wealth. The value of healthy well educated population is
increasing as technology sophisticated of the world economy grows.
Social Analysis
Health is important to people and is consistently regarded as high importance by rich and poor.
The ability to rally in the face of health threat is a test of a society while the act of mobilizing
create social cohesion and power social structure.
Technological Analysis
The new technology is related to this. By using new technology we can control our extra cost and
company can increase its seling by developing research and development. By using new
technology company can make healthy foods.

Conclusion
To complete all three steps (SWOT, 4Ps and PEST) have affected our strategy and marketing
decision. The SWOT analysis has help us to know our strength, weakness, opportunity and threat
from the competitors. Due to the SWOT analysis we know our company weakness and now we
can find the best way to control our weakness. By this we can also alert from the threat from the
competitors. PEST analysis focus our mind to the quality management system and how we can
provide the best services to our customer with technology improvements.