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Listen to the Sound of the Day Yesterday, Today & Tomorrow By Naveed Ahmed Khawaja Date: 19 th November 2009 A Company with a Heart and Soul.

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Presentation on theme: "Listen to the Sound of the Day Yesterday, Today & Tomorrow By Naveed Ahmed Khawaja Date: 19 th November 2009 A Company with a Heart and Soul."— Presentation transcript:

1 Listen to the Sound of the Day Yesterday, Today & Tomorrow By Naveed Ahmed Khawaja Date: 19 th November 2009 A Company with a Heart and Soul

2 Our Products

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4 English Biscuit Manufacturers (Pvt) Ltd was established as a joint venture company in 1965 with the name of PEEK FREANS PAKISTAN LIMITED In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited (ABIL), while the venture was renamed to English Biscuit Manufacturers (Pvt) Ltd, which stands to date EBM started manufacturing and marketing of world famous Peek Freans range in 1967 in order to provide Pakistani consumers with good quality, nutritious and hygienically packed biscuits The History of EBM A Company with a Heart and Soul

5 The Early Years - 70s –Economic Challenges Rupee de-valuation, Labor Unions unrest, Surging imported RM prices, Market too small (branded biscuits) EBM making losses everyday –Tethering on the brink of bankruptcy – Incurring losses of Rs 5000/- per day –Traditional & Old style Biscuit industry BP – Montgomery – Sunshine etc. Branded market small & stagnant No concept of Strong Branding, Positioning No Product innovation/ differentiation etc. The Industry Issues A Company with a Heart and Soul

6 Leadership Challenge –Shake & revive the industry –Bring Change through Competition –Achieve Growth in branded biscuit industry Strategy & Branding –Create need & niche –Biscuits considered as a Luxury food item & not a necessity –Introduce Branding & Positioning –Bring Product & Packaging innovation –Grow Vol. share to survive –Invest in Technology & R&D Key Challenges A Company with a Heart and Soul

7 The Strategy of 70s Taking Competitive Edge Biscuits marketed as food in between meals Biscuits marketed under PF & EB umbrellas Through strong & modern Branding The Pied Piper concept launched –The Sound of Yesterday, Today & TomorrowThe Sound of Yesterday, Today & Tomorrow The Legend Leads Gained Instant Popularity, Awareness, Relevance, Trial and Loyalty A larger than life icon… But the Total Market did not grow! Competition did not compete A Company with a Heart and Soul

8 Grow the total Market – Created Competition from within – Launched another brand range Happy – Created competition in branded biscuit ind. – Overall Market grew by +30% – Market growth attracted a mushrooming of entrants Union, Montgomery, AB Foods, etc The Strategy of 70s contd... A Company with a Heart and Soul

9 The mid-Years - Era of Market Growth – Grew market leadership through launch of new innovative products Introduced Premium products i.e. Farm House Cookies (87-88) Introduced the EB Royal Range (88-89) Entry of Danone through CBL i.e. LU brand Competitive environment fuelled further market growth The Strategy of 80s A Company with a Heart and Soul

10 Intense competition & market growth –EBM market share slipped –Standing Still…. Was not an option –A change was imminent –With increasing input costs, increasing competition & market share slip strategic business decisions had to be taken –EBM adopted a high volume, low margin strategy The Strategy of 90s A Company with a Heart and Soul

11 Price Increase Freeze in mid-90s –Objective Create barriers of entry for new entrants Make biscuits more affordable for consumers to aid conversion from loose biscuits to packaged Allow economies of scale & capacity utilizations –Outcome Market grew volumetrically Small players crashed out as their scale of operations could not sustain the price freeze EBM focused on increasing internal efficiencies –New plant expansions –Balancing, Modernization & Replacement (BMR) The Strategy of 90s contd… A Company with a Heart and Soul

12 Current Times – Era of EBM Growth –Continue Price Freeze till 2007 –Continue High Volume, Low Margin Strategy –Focus on Increasing Internal economies and efficiencies –Cost reductions without impacting product quality Self-power generation Reduction of product wastages Increase in plant efficiencies (new plants) Focus on long-term contractual agreements for raw materials procurement Alternate sourcing of packaging material (imported vs. local) No compromise on the product quality via any cutting of corners –Ensuring that the consumer is not cheated –Trust and confidence is maintained The Strategy of 2000 & Onwards A Company with a Heart and Soul

13 Market Penetration Strategies –Product Launches & Re-launches –EBMs true Marketing Success Stories Sooper Re-launch - leading the turnaround of business & growth of overall biscuit market Sooper 1.aviSooper 2.mpg Sooper 1.aviSooper 2.mpg –Capitalizing on Market Leadership Position RIO Double Treat – product innovation (2 creams) Marvell – Product Innovation in Shape Party Re-launch –Seeking new consumers through new consumption occasions Sandwiches Re-launch – Over 40 years old brand –Tapping up-country markets Peanut Pik & Pista Re-launch The Strategy of 2000 & Onwards contd… A Company with a Heart and Soul

14 Focus on increasing Distribution Penetration into Rural Markets –Rural Development Programs –Opening of New Towns & Direct Servicing Focus on Demand Generation –Out-spending competition on media –Trial generation & repeat purchase Consumer Promotions Brand Activations –Heavy investment behind CSR initiatives to project positive brand & company image Demand of Brands > Ability to Supply –5 Focus Brand Strategy The Strategy of 2000 & Onwards contd… A Company with a Heart and Soul

15 How did we do that ? Power of Vision

16 To be recognized as a LEADING and PROGRESSIVELY FORWARD looking FOOD COMPANY, providing the best quality products to everyone in Pakistan To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen Vision A Company with a Heart and Soul

17 Transform EBM into a living institution with a body, mind & soul which is recognized as a good corporate citizen due to its core values as Open minded, transparent, & responsibly delivering consumer satisfaction with a sprit to excel. Corporate Objective A Company with a Heart and Soul

18 + LeadershipVitalityHumanity + Number 1 Growth Strategy Branding & Creativity Competitive Edge Hygiene/ Pakeezgi Productivity Ethical & Transparent Cons. Trust & Confidence Responsibility Socially Responsible Environmentally Friendly Food Safety Standards Dynamic Organization Good Corporate Citizen People Dev. – Openess – Team working – Spirit to Excel Mind Soul Body EBMs Strategic Pillars

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20 Core Values Follows the Highest Ethical Values & Professionalism Believes Product Quality is next to religion Pursues International Safe Food Standards & Hygiene to promote National Health since its very inception Environmentally sensitive & responsible Attains Technological Advancement in both human resources, plant & machinery A Company with a Heart and Soul

21 Our Philosophy Food is Rizk Hygiene a part of a bigger concept of Pakeezgi What is the concept of PAKEEZGI for us at EBM? Innate realization that the Food we offer, MUST be of the highest Quality Hygiene at the work-place In our THOUGHTS & ACTIONS In having a SENSE of RESPONSIBILITY and the HEART to do whats right A Company with a Heart and Soul

22 –Ensuring Quality & Affordability No compromise on product quality Focus on improving internal efficiencies & economies of scale –Offering the best Quality & Taste Adherence to International Quality Standards First Biscuit company in Pakistan to attain HACCP & ISO Certifications State of the art manufacturing processes with investment of over Rs 2 billion Sense of Responsibility Towards Consumers A Company with a Heart and Soul

23 –Company contributes over Rs 850 million to the National Exchequer in the form of Taxes & Duties Clubbed in the elite group of highest tax-payers –Provides Employment (direct & indirect) to over 2000 ppl approx –Company ethos of a Caring Corporate Citizen As a Responsibility As an Obligation of Good Governance Sense of Responsibility Towards the Nation A Company with a Heart and Soul

24 Sense of Responsibility Towards the Nation A Company with a Heart and Soul We make the world around us better.

25 –Sensitivity to the Environment Proactive Environmental practices Water Treatment Plant Separate Area for Solid Waste Management ISO Certification Only Biscuit company to have received the Environment Excellence Award for 5 consecutive years Sense of Responsibility Towards the Nation A Company with a Heart and Soul

26 Primary focus of Corporate Social Responsibility (CSR) initiatives on 3 key areas: H ealth E ducation S ports HEALTH EDUCATIONSPORTS EBM Caring Corporate Citizen A Company with a Heart and Soul

27 Sense of Responsibility Towards the Nation A Company with a Heart and Soul

28 LAST SEVEN YEAR HIGHLIGHTS TO Where are We?

29 81% 48% 31% 11% 31% -2%+17% Sales Volume – Master Cartons

30 A Company with a Heart and Soul

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38 Recognized as A Company with a Heart and Soul

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40 Leadership –Power of Vision (No Dreams – No Gains) –Magic of a Rallying Call –Directing Peoples Power, Energy, Exuberance & Passion –Make the Change happen Branding –Learn to reject, Research & Explore, Spend time Technology –Invest ahead of time, Be the 1 st to introduce, Take risk Customer Care –Suit your business to customers needs, otherwise –Customers will suit themselves Work Environment –Open, Challenging, Competing, Empowering, Team working & Fun working The Mantra The Harder You Work…The Luckier You Get!!

41 God has been kind to us Our Consumers have been kind to us We have lived up to their trust and confidence in our company and brands through our Marketing initiatives Aggressive marketing plans for the future We have glorious past…an enviable present and God- willing, a prosperous future ahead of us where the Sound of Peek Freans will continue to keep resounding in your hearts The Future A Company with a Heart and Soul

42 THANK YOU


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