Internship Report on Tripple-EM 2009-2

COMPANY INTRODUCTION

Company deals in Snack foods and word Tripple-Em denotes the names
Milk Muhammad Aslam (Father)------------(Late)
Milk Muhammad Shahid (Son)
Milk Muhammad Rashid (Son)
Tripple-em was as private limited company based on 100% equity.
Company started its business in early 80’s and now, is market leader in the snack food industry. It has approximately captured 58 to 60 percent of chips and nimko market and 40 to 45 percent of extrusion market. The sales of super crisp are 9 million per year and it has three product lines such as chips, nimko and extruded product. Company major competitors are Golden, Kolson, Smith and Bunnys. Production plant of company was imported from America and company claims that no such plant is available in Pakistan. The head office of the company is situated in Lahore with address, 122-A Model Town, Lahore. And it has production, finance, purchase, account, marketing and Administration department. The company offers high quality product and maintains its quality, therefore, consumer perception about the product is of high quality.












Commercialization
In 1982 production plant has been installed in Kot Lakhpat Industrial Area.
In 1986, Tripple-em (Pvt) Ltd.started commercialization of snacks in potato chips range with super crisp, as brands in early 90s.

Extruded Range
In 1995 company diversified its products in snacks by introducing extruded product line, usually made from maize, maize flours.

Ideal Marketing
Since 1990, all the marketing function was integrated but in 1990.
Ideal Marketing (Pvt) Ltd. Was created as a subsidiary of Tripple-em. Ideal Marketing, as separate entity was made responsible for all the marketing activities of triple-em.
But from July 2000 Ideal Marketing has merged with Tripple-em and all the staff has shifted to main office of Tripple-em now constituting the marketing department of company.













PRESENT STATUS OF TRIPPLE-EM

A Manufacturing organization, Tripple-em is an organization active in snacks food business. Tripple-em is private limited company with its head office situated in Lahore with the address, 122-A, Model Town, Lahore.

Production plant of company is geographically decentralized, locating in industrial Area of Kot Lakhpat Lahore and its production plant is considered to be one of the best and sensitive in Asia for production of snack.

Tripple-em claims to be pioneering in snacks food under the dynamic leadership of Malik Muhammad Shahid, Chief Executive of Company.
In snack food Tripple-em is selling three product ranges.

v Potato Chips Products
v Nimko products
v Extruded products

Tripple-em is selling 22 brands of various snacks with 22 varieties, and “Tripple-em” as corporate brand and “ Super Crisp” as umbrella brand along with specific brands.

Tripple-em is brand leader in snacks food industry, which is at growth stage. Currently, it is capturing more than 60% market share in its chips/nimko product range and more than 40% market share in extrusion product range. Its competitors in the industry are Golden, Smiths and Kolsan brands alternately.





Tripple-em is operating nationwide in all the four provinces of country. Its products have also demand and export potential abroad, specially in Middle East and company had been exporting to this region, thus being the first exporter of snack foods in the country.

Tripple-em was awarded Export Trophy Award in 1987 due to export performance.

Tripple-em is a permanent member of American Chips and Snack food products association and was given American International Export Quality Award in 1995.

Tripple-em is also member of Pakistan Chips And Snack Food Associations (PCSFA).

Tripple-em claims to be Pioneering in snack food industry and so it is.
Company attains certification from ISO 9002 in September 2001, from Belgium and company further working for attaining ISO 9001 certification.























MISSION STATEMENT

“Our primary objective is to produce competitive, cost effective quality products, conforming to the customer’s requirements”.



















OBJECTIVES OF ORGANIZATION

An organization objective is a target to which the organization directs its efforts. Establishing objectives is very important for any company. Objectives provide foundations for planning, organization motivating and controlling. These are important to keep the organizational activities in one direction. The objectives should be measurable, quantifiable, achievable, flexible, and consistent with the organization mission. The company uses the objectives for the following purposes: -
v Managers use objectives as a guideline for decision-making.
v Management uses the objectives to increase the organizational efficiency.
v Management uses the objectives as a guideline for performance appraisal.
Tripple-EM (Pvt.) Ltd, has established the organizational objectives in the following areas
v Quality objectives
v Profitability
v Brand Image
v Market share
v Innovation
v Growth objectives
v Social responsibility



Quality Objectives
v To achieve ISO 9001-2000 conversion/certification by end of June 2003.
v To maintain the production wastage between 2 –3%
v To achieve the sales target of this year (10% more than the year 2001-2002)
v To initiate export of company products by at least 2 containers this year.

Profitability

v Maintain a consistent increase in return on investment (R0I)
v Maximize shareholder’s wealth
v Maximize net profit margin

Market Share

To maintain high market share which is 60% as minimum standard by increase in sales.

Brand Image

Tripple-EM is establishing its brand name by giving the customers a good name quality product at a very reasonable price. The purpose of choosing the brand “SUPER CRISP” is that it is easy to remember; easy to pronounce and leave good impression that the product is super and crispy.


Brand Leadership

To pioneer in snack food by maintain brand image while maintaining strong brand and brand equity.

Innovation

Innovation plays a key role in the existence of any business. No company can survive without innovation in the products. Tripple-EM makes changes in the method of production. The company gets feedback through sales force and appointing internees.

Social Responsibility

v To maximize customer’s satisfaction..
v To operate with maximum care of environment and society.

Growth objectives

v To increase product line length by introducing new products as soon as room for them is created in market
v To make continuous improvements by innovation and R&D activities.
v To increase in assets of company over time









DEPARTMENTS
















HIERARCHY




















MANAGERIAL POLICIES

Quality Policy
At Tripple Em (Pvt) Limited, we wish to maintain supremacy and market leadership with our unflinching commitment to produce highest quality snack foods by a team of dedicated professionals in line with standards of Snack food association, USA. We shall continue to meet requirements of our local and foreign customers with special emphasis on their nutrition, safety and health.

Our ultimate objective is to be able to produce defect-free products through continuous improvement system and attain the highest accredit ion in quality and environment.

Sales Policy

The organization sells its product through distributors. Company has wide range of distributor network throughout the Pakistan. These distributors purchase the products from company and sell to end consumer.

Credit Policy

Company credit policy is strict. It sells the products to their distributors on credit of 10-12 days. They have to pay the amount in that specified period, otherwise, their credit limit is reduced.

Security Policy
It is also following the policy of security deposit. Distributors deposit some amount as security at the time of selection.

Hygiene Policy

Being in food processing business, triple-em has adopted a strict hygiene policy in its products and operations. Strict hygiene standards and caution is observed in production. Simultaneously all the employees in all departments are prohibited from smoking and other unhygienic activities.

Behavior Polices

Behavioral policy guidelines consider the behavior an outcome of attitude. To influence the beliefs and attitude of employees. Employees are required to practice Islam in their individual and collective affairs i.e. work performance. For this, religious atmosphere is created; Islamic practices such as beard and prayers are encouraged and anticipated. Special religious lectures are engaged twice a week, preaching Islamic values i.e. honesty, responsibility, fairness etc., in all social practices.

Decision Making Policy

As the company is centralized in structure and delegates a limited authority to low-level management. Decisions are taken by the top management i.e. C.E.O, but all the functional management is consulted. For this an Executive Committee has been constituted which Chief Executive, including General Manager and respective departmental heads.

So constituted committee takes all the business as well as functional decisions.




Delegation Of Authority

Delegation of authority to management is necessary; therefore, a limited and defined authority is delegated to the management for performing functional tasks.

Centralization

Tripple-em is a private limited company; its decision-making authority lies with the Chief Executive. All the respective personnel are consulted for making a policy or taking a decision but CEO takes the final decision.








MARKETING AND SALES DEPARTMENT






























MARKETING & SALES DEPARTMENT


Marketing Manager = 1
Secretary = 1
Assistant Brand Manager = 1
National Sales Manager = 1
Assistant Manger of Operation and Planning = 1
Assistant Manager Dispatches = 1
Data Officer = 1
Regional Sales Manager = 4
Computer Officer = 3
Senior Sales Officer = 3
Sales Officers = 15
Assistant Sales Officer = 18
Area Field Manger = 3
Area Filed Manger = 3














FUNCTIONS
Marketing & sales Department performs following function.
v They control all the marketing activities.
v They receive the orders from intuitions and distribution. In case of intuitions, they are not directly involved to sell their product to institution. They place this order to the distributors of that area who fulfills the needs of these institutions.
v These departments provide the sale force to distributors for their assistant; their salary is borne by company.
v These departments also conduct
v Given the research in different market, for assessing the market position.
v Sales officers also visit the market on daily basis and check the performance of sale force.
v Whenever, they realizes the need of distributor in an area, they publish a notice for dealership in the newspaper.
v The also maintain the record of sales force and daily sales of distributors.
v These departments receive the claim from distributors and send it to the account department for further proceedings.
v These department contacts with advertising agencies for their seasonal advertisements.


v These departments also give rewards to the distributors in case of achieving targets.
v These departments are also responsible for launching the new schemes and also provide the POP material to retailers to promote their sale.
v These departments are also responsible for launching the new product, making the market plan how, when & where to lunch the product.
v The RSM is responsible to increase number of points in his area.
v Data officer is responsible to record the data on daily basis.
v Computer officers assist to RSM in recording and providing the information.












FINANCE DEPARTMENT





FINANCE DEPARTMENT

Finance Manager = 1
Internal Auditor = 1
Assistant Auditor = 1
Chief Accountant = 1
Taller = 1
Data Officer = 1
Accountant Officer = 10


FUNCTIONS

This department performs following functions.
v They Control the cash inflow and outflow.
v They prepare the forecast budgeting statement.
v They are responsible for financial matter of the company.
v They prepare the interim financial statements.
v They give the salary to employees.
v They tell to the management about the financial position of company.
v The check the accounting record on daily basis.
v The maintain records of their clients.



ADMINISTRATION & PERSONNEL DEPARTMENT





ADMINISTRATION DEPARTMENT


Admin Manager = 1
Senior Admin Officer = 1
Data Officer = 1
Admin Officer = 1
Admin Officer = 1
General Duty Officers = 4

FUNCTIONS

v They are responsible for issuing the appointment and terminating letter to employees.
v They give rewards and benefits to employees on the basis of their performance (Provident Funds, Annual increment Daily allowance, House Rent).
v They conduct the interview for recruiting the person.
v They also arrange the training is taken by different institutes and agencies.
v They are responsible to provide on the job training to their employees.





PRODUCTION DEPARTMENT

























PRODUCTION DEPARTMENT


Factory Manager = 1
Data Officer = 1
Dispatch Officer = 1
Cost Control Manager = 1
Engineering Department Head = 1
Workshop Head = 1
Helpers = 5
Production Manger = 1
Supervisors = 5
Labor = 300

FUNCTIONS

v This department is involved in the production process.
v Process should be design in such ways that production cost should be minimum.
v To check the quality of product at stages of production.
v To maintain the quality of the product according to the requirement of the ISO 9002.
v Produce goods according to the requirement of the market.
v Reduce production waste up to 2%-3%as per company policy







PURCHASE DEPARTMENT






PURCHASE DEPARTMENT


Purchase Manager = 1
Purchase Officer = 3

FUNCTIONS

The main faction of this department is to purchase the office supplies and raw material.
HOW TO PURCHASE:
v Requisition is issued by factory to purchase department.
v Purchase department accepts it and it’s the sends to finance department.
v Finance department approves it, and again, sends it back to the purchase department.
v Then, purchase team visits the different markets to talk to different vendors.
v At least, three quotations are considered.
v Finally, purchase manager negotiate with the vendors, and purchases the product at negotiate.
In case of bulk quantities, tender notice is published in newspapers.




POLICY FORMULATION PROCESS


Triple EM is a private organization which is a properly of a Malik Family and working under the supervision of Malik Muhammad Shahid (Chief Executive).
Chief Executive forms all the policies of the company. No one is allowed to interfere in this job. Some times the chief executive calls the meeting of managers, sometimes manager only and takes the decisions of company.
The head of department is not allowed to add or subtest even a negligible small decision about the policies of the company.
Policies are formed, filtered and decided by the chief executive and followed by the employees of company according to their own job description.
Incase of violation of any policy, the employee leave from this company without any hesitation.






EMPLOYEES JOP SATISFACTION

More than 80 % employees of tripple-Em are not satisfied from their job. Few employees whore are satisfied these are old associates of chief executive. Mostly employees are not satisfied due to following reasons.
v No one is secure in his job even general manager is not secure about his job. Any one can leave from the organization without any reason.
v Company’s policies are so harsh, if you are few minutes late your lose one day pay without warning. Employee of one department con not share information with the other department employees.
v Old associates of company misbehaving with the employees and no one ask them. Due to this mostly employees leave from the organization when they again chance in the other organization.

CAREER LADDER

A person who is appointing as a sales officer he can jump unto senior sales officer within 10-12 years. Few growth opportunities are available in this organization. Mostly workers who gain other jobs they move to the other organization. If an employee working in tripple-Em his experience is considered good and he may gain good job.



JOB ASSIGNMENT AND
QUALIFICATION

Mostly staff of a tripple-Em is not professionally qualified, only few people who are at managing post are professionally qualified. Some employees who have excellent experience in a specific field and have good knowledge about market are bound to stay on seat without any reasons. Some people whom zero knowledge and no experience about market. They are enjoying market visits.

JOB ASSESSMENT METHOD

In sales department jobs are assessed on sales base. More the sales more efficient worker and don’t consider experience. Those employees who have good experience in sales field they get more pay.
In accounts and administration and purchase department jobs are assessed on experience, affiliation with the boss and working honestly with organization.
In purchase department jobs are assessed according to the knowledge and experience in purchase department.
In production department jobs are assessed on the bases of productivity of employees, their experience and loyalty with the organization.



ADMINISTRATION / PERSONNEL DEPARTMENT

The Personal/Human resource department organizes the human resource of organization for getting done all the activities of various departments. Personnel department makes available human resource, organizes each and everything from recruitment, functioning, remuneration and rewards to resignation of personnel’s. It sets the terms and conditions for various job, probation, behavior, increments, to say everything about the career of individuals in the organization.

Recruitment

When organization feels the need of a personnel for a vacancy, Personnel department prepares the complete job description for a post which includes, the activities to be performed, necessary skills/education for performing these activities, abilities training and experience etc. Then a criterion is set against which applicants are to be evaluated.

Finding The Candidates For Specific Job

To approach potential candidates, personnel department uses following methods

Advertisement of Vacancies

For receiving applications for all major and competent posts, the vacancies are advertised in major national daily newspapers. Advertisements contain the job title, the activities to be performed, requisite qualification, experience, skills and abilities as well as required information about bio data and qualification of applicants.


Recruitment Agencies

Potential candidates for a job are also sought by recruitment agencies, which provide their services in this regard, especially technical personnel and manful workers are provided by these agencies.

Reference

Prospective candidates are also called by reference of existing employees of organization.

SELECTION PROCESS

Once the applications from the potential candidates are received through various methods, these are evaluated in the light of already set criteria for recruitment. Most suitable applicants, who fulfill the requisite qualities for a job, are short-listed.

Interview

Short listed applicants are called for a face-to-face interview with the selection board. An application form, which contains the questions to be asked from the applicants, is prepared. The nature of questions is as such to determine the following requisites in an applicant, e.g.

v Aptitude towards job.
v Intelligence.
v Skills
v Job related experience.

v Confidence.
v Personality
v Communication skills
v Special skills
v Development exposure
v Interpersonal exposure

Overall the interview intends to determine the suitability of an applicant for a specific job/post.

Appraisal

Candidates are apprised in interview. An appraisal form is prepared which records the grading of a candidate in terms of excellent, above average, average and below average.

Final Selection

Final selection of candidates, who have been interviewed and given grades in appraisal form, is made on merit basis. The candidates with highest grading points are selected according to number of seats available for a post.

RECRUITMENT AGREMENT/JOB POLICIES

Successful applicants are issued appointment letters for the job. Appointment letter is accompanied by an agreement to be signed by the applicants. The agreement clearly states the terms, conditions, responsibilities, and other aspects of an organizational policies regarding job it states following


Salary

Employees are fully informed about the gross salary of the job before hand; along with all the allowances/benefits as per company’s rules according to various grades.

Health Requirement

Employee’s appointment is subject to medical fitness proof by the nominated medical specialist.

Rules and regulations

Employees are further made bound to be complaisant with all the rules and regulations of organization.

Transfer

Employees can be transferred anywhere within the scope of operations of company.

Authority

Authority that is legal dimension of power is also described/delegated to employees. An employee is informed the scope of his authority and limitations as well.




Secrecy Policy

Recruitment agreement also makes the employee subject to keep all the official secrets of company e.g. trade secrets or confidential, business transactions, and affairs of the company.

Other job/occupation

Employee is made bound not to accept other occupation or employment or any other business activity directly or indirectly during the job.
If the candidates sign the appointment letter and job agreement, he is hereby appointed to the post and he\she becomes a regular employee of the organization.

Probationary period

Recruitment agreement also specifies the probationary period until confirmation of job. During this period, employee is evaluated on the basis of performance, behavior and other set criteria. If he/she successfully completes the probationary period, his/her position is confirmed.












TRAINING PROGRAM

Employees are also made few times aware henceforth about the training if necessary. Training program held on September 2002 has following contents

Old Views

Selling or sales person in the past, these terms might have the image of pushy, fast talking individual who hunt the innocent customers by selling inferior or over priced goods.

Modern View

Today sales people are indeed a far better than that stereotype described before.
They are highly trained, skilled and motivated people who understand that the key to long-term success is customer satisfaction

v Instead of overcoming the prospects, modern sellers identify customer’s needs and develop solutions to problems.
v Instead of just talking, they make it their business to listen.
v Instead of forgetting about a customer after an order is obtained, they provide after sale service
So, a strong, dynamic sales force, is the backbone of successful companies.

Personal Selling

Personal selling is a critical aspect of a firm’s promotional strategy when correctly used and done well; it is major factor in generating sales.


v The human element is critical in selling process, because salesperson and customer deal with each other face to face. A partnership is created.
v The sales Person becomes the company for the customer. Buyer does not deal just with business organization but with human beings. Since, personal contact are involved, it is more difficult for buyers to ignore or remove the sales influence (in contrast to an advertising message or other promotional activity).
v Personal Selling offers the opportunity for salesperson to build basis of trust and confidence with customers.
v Through personal selling, one can work for desired action by the customer immediately. It provides the opportunity for salesperson to get the decision that is wanted on the spot.

Central Position of Salesperson







Sales Team








Senior Pakistan Sales Manager’s view
Of “High Quality Sales Performance” (1995-96)

v Meet year’s sales targets (unanimous)
v Quality of territory coverage
v Develop new, high potential customers
v Retain old, high-potential customers
v Quality of customer PR
v Quality of corporate ‘image-building’ work
v Adhere to promoting desired product mix
v Maintenance & care of company assets
v Reduce outstanding credit among customers
v Quality & regularity of sales reports

Planned Selling

Good sales presentation is seldom spontaneous but rather the result of knowledge of your product, coupled with thorough planning. Planning is nothing more than talking your selling points and putting them in orderly and logically sequence to be most effective.

v Planning gives you confidence and ensures that you do not leave important point.
v For sales promotion common formula or sequence is followed which have the following

a. The approach – get attention
b. The presentation – the sales story
c. The close – ask for the order


The Approach

Before you can sell anything, you off course must have the prospect’s attention:

v Speak briefly to him about something in which you know he is interested or something of common interest
v Ask his opinion
v Tell him an attention getting fact
v Cite on occurrence or events that might affect him or his business

The Presentation:

The main task in the presentation is AIDA (Attention, Interest, Desire, Action)

v Expressions of his interest, even objections. He would not raised them if he did not have an interest and they indicate the points you should concentrate on to make the sale. Once you have satisfied his question and objection Develop your sales points in an orderly and logically sequence, stick to facts
v Ask trial question during your presentation to determine the degree of interest of the prospect or to determine if you should develop certain points more thoroughly, particular those he seem to express an interest in
v Answer any question or objection he raises as they come-up. Dont avoid them. They are, you have made sales (A special section on how to handle the objection follows)



The Close

v Sum-up the main points of the sales story. Be sure to emphasize these points he expressed an interest in.
v Ask if these are further questions you can answer for him
v Ask for the order, give him choice between two positions e.g. ask for choice of stands big or medium
v Keep your month close after getting the order

OBJECTION HANDLING

There are two types of objection

Real & Valid

Those objections that are answerable with benefits e.g. air in the packets, keep the freshness.

Unreasonable Objection

These objections are emotional, opinionated or have no basis in fact
The best way to handle this type of objection is to give soft, answer and ignore. Go on with our presentation if the objection is unreasonable. There is no reasonable answer that can be given.


Techniques for Handling Valid Objections

v Offset the objection with explanation of benefits
v Correct misinformation with accurate facts
v Turn it into a question
v Testimonial from other uses

Tips on Reacting to Objections

v Relax both emotionally and physically. Stay cool, calm and collect your thoughts
v Listen and analyze the objection carefully. Be assure that he is asking you the reassurance or giving reasons for not buying
v Restate the objection as you understand it, (this will give you time to think). Get his agreement that you are correct in your understanding of his position
v If you can get the dealer to restate his objection he will find his original objection less important or valid or even drop it or temper it.
v Decide your strategy that how you will answer the objection, what information, fact, benefit you will use. Be positive in your reply
v Act – Do not ask him to agree with your point. Assure he does, continue with your sales presentation of benefits to him or ask the order

AN IDEAL TIME TO ASK FOR THE ORDER IS AFTER YOU HAVE ANSWERED AN OBJECTION



Your All Conversation should be Super “CRISP”
C – concise
R ------------- Related to the customer needs
I -------------- Interesting to the customer
S ------------- Simple
P ------------ Personalized, logical and in control

For your conversation you should apply the “Kiss” principle

v Keep It Short and Simple
v Keep It Simple Stupid

The Role of The professional Sales Person

v Maintaining and developing business with existing customers
v Developing new accounts
v Directing sales efforts into end-user accounts, as appropriate
v Maintaining and developing a distribution network
v Supporting distribution through sales efforts, providing information, education and training
v Developing sound business relationships
v Promoting the company and its image in the market place
v Effectively using all resources available
v Develop the territory business
v Communicating


v Providing market intelligence and information on competitive activity
v Maintaining sound relationships with colleagues
v Contributing to group and company objectives
v Self development

PROFESSIONAL SELLING

What is Selling?

v It is the process of inducing and assisting a prospective customer to buy a product to act favorably upon an idea that has commercial significance to the Seller.
v It is the art of persuading some one to give up one’s position in favor of another.

Duties/Responsibilities of a Sales Person

v Stock Levels.
v Advertising.
v Display/Merchandizing.
v Goodwill.
v New Distribution.





Stock Levels
It is the prime duty of a Sales Person to insure adequate levels of stocks.

v According rule of Thumb, adequate stock level should be 25% above normal sales.
v Holidays, Promotions, Special Events, and other abnormal activities require stock adjustments.
v It is the Sales Person’s responsibility to sell the full product range and provide growth.

Action To Be Taken

v Suggest stock needs to the shopkeeper, don’t ask him
v By winning his confidence, by maintaining adequate level for Sales, but not by over-stocking.
v Suggest benefits of adequate stock to the shopkeeper e.g.
a. Minimize lost sales and profits.
b. Satisfy his customer.
c. Create new customers and profits
d. Benefit from demands created by advertising




Advertising: (POP)
Point of purchase material is the only element in the advertising chain that brings together all the three factors necessary for making sale:
v The customer
v The product
v The reminder/influence to buy.

Important Aspects Of POP

Where to put POP
v Where you can catch the eyes of people riding by.
v Where you can catch the eyes of people entering
v Where you can catch the eyes of people in outlet.

Display / Merchandizing:

In store product displays are the end objectives of all merchandizing efforts. Display creates the availability that differs from non-distribution. It is the time-proven fact that display substantially increases the sales of a product.

v Product “Well Displayed is half-sold”




Where To Build Display
v Check out counter area.
v Specific areas for particular products.
v Accessible to the in-store traffic flow.
How To Build Display
v Big
v Irregular
v Place POP on them
Why Build Displays
v Increase Sales
v Shopper convenience
v Maximum use of stock inventory.
v Capitalize on seasonal and special promotional support.
GOODWILL
v Of all the Salesmen’s assets, the goodwill of the people he deals which is the most valuable and important, as it is what makes it possible for him to accomplish his other marketing and merchandizing objectives.
v It is human nature to want to do business with people you like and are comfortable with.
v Goodwill is not just liking you, he must also respect you and respect must be earned by how you look, talk, act, and generally conduct yourself.

How to create goodwill
Things To Do
v Appearance.
v Language
v Friendly, helpful but business like manners.
v Courtesy.
v Genuine interest in dealer and his problems.
v Dependable service.

Things Not To Do
v Don’t smoke in the outlets.
v Don’t chew gum/pan etc.
v Don’t interfere with or distract his employee
v Don’t make promises you can’t keep.

NEW DISTRIBUTION
The key to continuing growth is the consistent expansion of your distribution network. The more you make a product available through the distributor, the more of it you will sell.
As the market grows through population growth, increasing demand for a product, industrial expansion, and new product introduction, opportunities for new distribution are constantly available.

How To Make New Prospect Call
v Analyze the outlet needs.
v Try to learn something about the prospect that will give you something to talk about (hobby, mutual friends, past history etc.
v Decide exactly what it is, you want to accomplish (sell a vender, place a rack, add a new product, sell your products etc.)
v Plan your sales presentation (how will you open your sales talk, what features and benefits will you cover, what will be reply to questions or objections etc.)
v Make the call with confidence (believe in your facts, product, or proposal, and their benefits to the distributor).
v
Follow Up
v To make sure the distributor is satisfied, which sets the foundations for lasting relationship.
v To indicate your professionalism and make him receptive to future proposals.
v To sell him on other or related proposals while he is receptive.
v To make any adjustment or resolve any complaints before they become major deterrents to future business.
v New distribution is not just limited to new accounts, but can also be developed through enlisting accounts by the addition of new products, stands, hangers etc.




The Six Steps To Success Of Sales Calls
1. Do research 2. Set objectives 3. Ask Questions
4. Explain the benefits 5. Meet objections 6. Close the sale
The Six Steps To Success Of Sales Calls
Do Research
v Research the Customer
v Research the Product.
v Research the Relationship
Set Objectives
v Prepare alternative
v Other customers for the product.
v Other products for the Customer.
Ask Questions
v Ask open questions.
v Keep control.
Explain The Benefits
v Benefits not features.
v Customer needs.
Meet Objections
v Play it cool.
v Make it specific
v Put it in perspective.
v Follow it with composition.
Close The Sale
v Watch for buying signals.
v Ask for the orders.
v Keep your mouth shut.

SOME CORE QUALITIES OF SALES PROFESSIONALS
1.Confidence 2. Enthusiasm 3. Self-discipline
4. Persistence 5. Flexibility 6. Honesty
7. Integrity 8. Sincerity 9. Alertness
10. A sense of urgency 11. Humor 12. Desire to improve
13. An open mind 14. Healthy 15. Energetic
16. Well groomed 17. Literate


EMPLOYEES BENEFITS

Employees are given following benefits as per company job policy

Allowances
Apart from gross salary, employees are given various kinds of allowances including

House Rent
Tripple-em provides house rent to employees, which are though insufficient, but a source of additional benefit.

Conveyance Allowance
Higher-level management is given conveyance facility and allowances. Lower level management is also given a fixed amount of travel/fuels expenses. Sale forces, which serve in the field, so sales people are provided conveyance allowance on daily basis

Daily Allowance
Whenever employees go outstation in connection with their performance of duties. A daily allowance is given to them to meet their expenses. Sales force is given daily allowances.

Group Insurance
The facility of group insurance for the employees is also provided by the company, to compensate in case some contingences.




ADMIN FUNCTIONS

In Tripple-em Admin and Human resource/ Personnel department is one and some, managed by Admin and Personnel Manager

Function
Admin. Department performs all the administrative function for the organization as a whole including

Transport
Maintains the transport, conveyance arrangements for personnel, officers and sale force etc. Including all the expenses and allocations.

Security
Admin Department is responsible for all the security of equipment and staff. It appoints security guards where need, and ensures in security measures.

House Keeping
It includes all the activities such as maintaining the lawns, sports facilities, decoration and maintenance as well as renovation of buildings

Office Discipline
Admin department is responsible for and keeps a vigilant eye on the office discipline. It maintains decorum, employee’ time discipline and all the organizational discipline as well.




PRODUCTION FACILITY


Production
The process of converting the inputs into outputs is called production. Company production plant is situated at Kot lakhpat in Lahore. Plant was imported from America and gives the company an edge over its competitors. But, still, it is not fully utilized. It is used to produce all the three-product line of the company

LOCATION OF PRODUCTION/PLANT

When we talk about production facilities. It starts right from the location of production plant. Production plant of Tripple-em is situated in the Kot Lakhpat industrial area the address of production plant is

Strategic Location

A good location is one which is situated in strategic situation in regard of all production processes right from availability of raw material to the market of its outputs. The production department/plant of triple-em is situated in the industrial areas, so it has.
Every kind of infrastructure electricity, gas, communication, and transportation this kind of infrastructure is backbone of industrialization. It has easy access to manual as well as semi skilled labor because of being located in Lahore and further in industrial area.
Further location of production facilities easy availability of raw material, because Punjab is major producer of potato as well as other inputs i.e. pulses beans peanuts.



So fare as the dumping of wastes is concerned, it might had proved to be a major bottleneck for company, if it had not been located in right location because dumping of waste lows are getting strict. A plenty of waster is used for washing the potato’s in production process, for the dumping of wastewater the mullah of industrial area is available for this very purpose.
To sum, it can be said that production plant is situated in strategic location, serving a major source for internal strengths of company.


PRODUCTION PANT.

Production department of triple-em has highly sophisticated and modernized production plant imported from Japan, USA and Britannia. It is a high capacity production plant, which can produce more than 100000 packets of snakes in one shift of 8 hours. Its modern and highly sensitive packaging unit is fully computerized and is considered one of the best in the world.

Moreover, all the production processes in the plant are atomized to maximum extent to reduce manual work to minimum. The layout of plant is as such that it comes up to strict hygiene standards and working environment.

Production Planning

Production department carries out its production operation in planner manner. Marketing department prepares the sales goals/targets in consonance with market potential. Production department prepares its production schedule/planning in the light of sales forecast schedule.


As the packaged snacks are edibles and have limited shelf life, so production schedules are prepared as well as revised on monthly basis.
Production department remains in constant touch with the marketing department to match the production quantity with the sales orders so as to reduce the probability of quality deterioration (Freshness).
As the product is time sensitive, so we make every effort to synchronize its production with its sales. Says the production manager while responding to query about production planning.

PRODUCTION PROCESS

Production process for manufacturing of Super Crisp is as under

v Purchase of Potatoes
v Storage
v Washing
v Transfer into machinery
v Selection of Potatoes
v Cutting
v Carrogation
v Moisture Sucking
v Frying
v Sorting of fired Chips
v Flavor addition
v Packing
Now these steps of production process are elaborated one by one for better understanding of production process


Purchase Of Potatoes

The first and a very crucial step in production process is purchase of potatoes. These potatoes are purchased from all over the country. The criteria for potato purchase are based on three major factors.
v Quality
v Freshness
v Price
Purchase department make sure that potato purchased for the manufacturing of Super Crisp is of good quality, because the basic raw material in production is potato chips and company cannot compromise on the quality of potato. For ensuring the quality of Potato, random sampling from truckload is done. In this process at least three random samples, are picked from a truck prior to its unloading. These samples are scooped from three different location of truck.

Second criteria for purchase of potatoes is freshness, potatoes are purchase from the fresh crop of potatoes, because potatoes stored in cold storage are not recommended fro the
Production of chips therefore, in summer season potatoes are purchased from the fresh crop cultivated in the northern areas of the country.

A third criterion is the price. Although the purchase department negotiates price professionally, but quality is not compromised in super crisp for the purchase of potato even is price is less.

Once the sample is taken from the lot of potatoes, following parameters are applied for verification of potato quality. These parameters determine, that whether the potatoes are good enough fro production of chips or not.


Potato Grade And Condition
v Pulp Temperature
v External defects
v Size and count/ pounds
v Shape and percentage of peels
v Internal defects

Fry Chips Evaluation
v Specific gravity
v Glucose Level
v Sucrose Level
v Slice / wash/Fry
v Chips color, flavor texture and absence of defects

Storage

Potatoes once purchased are then stored within the factory. For this purpose, factory has the facility of shoring the potatoes.

Washing

As per the production schedule, potatoes are shifted from stores in the washing area. Washing is done first with cold water three times, afterwards there are washed thrice with hot water. It is made sure that washing has resulted into through cleaning of chips for further processing.



Transfer Into Machinery

The washed and clean potatoes are then put on conveyor belts for transfer into machinery for next process.

Sorting Of Potatoes

In the next step, potatoes are sorted out. In this process, which is done manually, green potatoes are picked up from the conveyor belt, after the machine has sorted out the small sized potatoes.

Cutting
After sorting out, potatoes are transferred to cutters. The cutting of potatoes is done by machine automatically.

Corrugation
After cutting slices, potatoes are corrugated, which enables them to produce curls in chips.

Moisture Sucking

This process is a very technical process and plays a very important role in the quality of final product. In this process machine sucks 70 to 75% of moisture form the potatoes. This enables fried potato chips to be crispy.



Frying

Through the conveyor belts, processed slices are taken to friers. Friers of Tripple-Em are monitored at specific temperature and frying is done at controlled time. In this process high quality refined oil is used. The oil content of fried chips is approximately 45%

Flavoring

Fried slices of Potatoes are than put to flavoring unit, which add up the various flavor to fried slices /chips, “Drum Mixer” mixes flavors homogeneously.

Sorting Of Fried Chips

After frying the fried chips is sorted out manually. In this process over fried and under fried chips are picked up by the workers.

Mini (15,18 gms) Medium (25 gms) Family (55 gms)
Paprika Plain Salted Plain Salted
Chilli Bar B. Q. Bar B.Q.
Plain Salted Dill Paprika
Bar B. Q. Paprika
Salt and Vinegar Chilli
Spicy T.Ketchup
Salty Lemon & Chilli






Packaging

The last step in production process is the Packaging. In the packaging section chips are transferred from flavor section on conveyor belts. The chips are Weighted and packed in all four pack sizes. It is assured that the weight of pack is at least the same, which is specified on the pack.
As mentioned earlier, as far as both ranges of chips are concerned, it is basically the packaging, which makes the difference. The polythene packaging is manufactured locally. Whereas, foil packaging is imported from Germany. Due to this aluminum foil pack, the shelf like of Super crisp is almost one year. Apart from increased shelf life. Super Crisp packaging is also designed and printed in attractive and eye-catching colors. The reasons for imported packaging are, because this type quality of foil packaging is not manufactured in Pakistan.
Now there is no chips manufacturer in Pakistan is using foil imported pack.

Packaging process

Fried and flavored potato chips or fully prepared extrusion or nimko items are put into a big drum. From the storing drum, snacks are put on a conveyer belt, which put them into buckets. These buckets take the snacks to a certain height to put into vibrating trays, which put them in merging unit.

Weighing

For desired package size, snacks are weighed automatically and in a controlled manner in weighing slots. Weighing slots receive the desired quantity from vibrating trays and then put the weighed snacks in pouch chamber.


Wrapping
Again this process is automatic and as the weighed snacks fell in pouch chamber, a wrapper/pouch is automatically put below and the product is packed in wrapper.

Sealing

When wrapper is covered around the snacks, “Sealer” automatically seals it. Gas is used as preservative in packaging, so here first gas is filled and then sealer seals the package. Now a “Counter” automatically counts completely packed snacks.

Secondary Packaging

Products are first packaged in wrapper and then for second time they are packaged into big paperboard cartons for trade and distribution deliveries.

Plant Maintenance

Mechanical and electrical engineers are responsible for maintaining the plant different checks are applied weekly, monthly, yearly. Every month plants are shut down for two days and washed fully.





PRODUCTION METHODS

Quantity Schedules
The quantity schedules are prepared monthly and can be revised as required. Since, the products are time sensitive and if these are put into goddown, their shell life decreases.

So, the production managers have to be very accurate otherwise the product may lose its life before it reaches at retail outlet.

The production schedules are matched with the actual orders, placed by the marketing department.

Quality Control
Production managers apply statistical quality control techniques to test the quality.
Quality of chips or snack food is measured by size, frying time, and solid contents. Frying time is important because more time than desired will produce uncooked potatoes. The statistical sampling helps managers to find out; to what extent the potatoes are fried.
The potatoes, which are purchased from Quetta, have a higher solid content, which sometimes are as bigger as a stone. So, great care is taken when that particular potatoes are used.
The inflate packing will lower the shell life and has a great effect on quality of the product. So each package is examined and separated if required.



QUALITY CONTROL COMMITTEE









QUALITY CONTROL COMMITTEE


Tripple-Em is certified from ISO 9002 and also trying to get certification from ISO 9001. So in order to fulfill the requirements of the ISO 9002, company form a committee, which is headed by chief executive officer. A separate person appointed by the company who is whose responsibility is to check his quality of product. He visit time to time and report to the chief executive. Factory manager and general manager also visit the factory and check the whole working of the factory and report to the chief executive.
In case of any problem or decadency the chief executive officer also visit to the factory. The requirements of ISO 9002 are
“Say what you produce, produce what you say”
So, this committee is working to fulfill the above requirements.











UTILIZATION OF PLANT CAPACITY


If we see broadly from industry prospective, the utilization capacity of is not full due to following reasons.
Target Market Size
Market size of shack food in Pakistan is very small and especially for branded snack food is very small. The branded snack food companies charge high prices due to this only elite class people can purchase branded snack food. This becomes the cause of underutilization of plant capacity.
Brands Crowds
In small market too much local country as well as imported brands companies are competing each other, which become the cause of under utilization of plant.
Market Growth
The growth of our country is less in snack food. People are quantity conscious, they don’t have knowledge of snack food items. People use snack food as a freshment not as a food. So, the snack food utilization reduced which presents the producers to produce more.





PURCHASE DEPATMENT


Every purchase of the company whether for the factory operations or for other department is made by this department.

Purchase department is headed by the manager purchase that gets all the activities done by purchase offices.

PURCHASE CATEGORIES

Purchases can be further categorized into this classification.

Seasonal Purchase
For manufacturing of snacks, seasonal agreements are made with different suppliers of potatoes, peanuts deals, maize flour etc.

Normal Purchases
For daily routine activities e.g. stationery for various departments, purchase is made as on demand / requisition.

PURCHASE PROCESS

Requisition
Factory for its operations requirements or any other department issues a requisition to purchase manager of purchase department. The requisition contains the



Information about the items demanded, description, number of units, quantity, amount and purpose for which it is required.

The requisition is first inspected and signed by purchase manager then general Manager examines the requisition if justifiable approves the requisition and finally it is approved by chief executive.

Purchase Function

When finally assented by chief executive, the requisition for some item/items is valid for the purchase department, which starts the actual purchase for which funds are provided by fiancé department.

Quotations

For the required purchase, purchase department has to consult minimum three vendors for quotation. Purchase manager would asset the quotation with minimum relates then he will negotiate and sign the deal.

For small purchase, purchase officers themselves visit the market and after consulting minimum three outlasts finalize the acceptable one.

Advertising For Quotation

For big purchase the purchase department advertises the need for quotations negotiates with the suppliers and signs the deal, it is usually done for main raw purchases.

MAIN PURCHSASE CONCERN

The main purchase concern of purchase department is the purchases for factory operations which includes generally all the inputs and raw materials for snakes production and often some capital equipment e.g. parts machinery etc.

Planning for purchase

Management of factory operations does all the planning for purchase of items for factory. Factory provides the detail for daily and seasonal items to be purchased why to purchase and when to purchase.

Seasonal Purchases

For seasonal purchases a purchase order is placed with the supplier party, which is bond to make supplies available according to terms and conditions set by purchase department. Three to four copies of purchase order are prepared one is kept with purchase department one is sent to factory store which maintain its record one is sent to finance department which plans for the payment schedule.

DOCUMENTATION STAGES

When through purchase order or on cash some purchase is made it under goes the following process.



Daily purchase Challan

For every purchase made, purchase department issues A Daily Purchase Challan, which contains the date of purchase, amount and quantity etc. It is signed by purchase officer, counter signed by gate receiving clerk of factory store and finally by factory manager.

Inward gate pass

Inward gate pass is the receipt that goods purchased have been received by factory store. It also contains the date, description, units and quality of goods purchased and received. It is duly signed by store clerk and counter signed by factory manager.

Material Receipt and Inspection Report

Once purchased goods are received by store. Factory administration inspects them to ensure whether they are according to requisition or not. If so, a material receipt and inspection report is prepared which contains the name of person goods received from, purchased requisition number, carrier number, gate pass, suppliers invoice, units, quantity and rate etc. Store officer, person who inspects and finally by factory manager then sent to purchase Department, signs it.

Submitting To Finance Department

The purchase requisition, purchase challan inward gate receipt, material receipt and inspection report, when duly signed and verified by concerned authorities are submitted by purchase department to finance department which makes payment for the purchases and maintains the financial record.


MARKETING DEPARTMENT

We are the people who start from developing the concept of a product in consumer’s terms, test its suitability for consumers, launch it in the market and make it sell in the market, If we fail in selling the product the organization would cease to exist.
These were the words immediately uttered by the marketing manager while responding the question about the specialized activities of Marketing Department in organizational structure.

Management

Manager marketing who is responsible for all marketing function heads marketing department. Marketing manager is getting the marketing activities done by organizing in following manner.

MARKETING PROGRAM

Marketing department at the out set of financial year, prepares the budget statement of expected income and expenditure, which is, if appropriates assented by top Management. At the next step marketing manager decides how much be allocated for marketing mix tools.

Sales Management –Procedure

Marketing Department selects the distribution channel intermediaries, maintains its own sales force to secure its sales interests in the market. Customer, the distributor


puts the purchase order to the marketing department of triple_em. Customer order processing officer receives the order and prepares a requisition.

Production department daily prepares a “Daily Production Report” to marketing department. It contains the complete description of finished good units produced in all the three lines. It also mentions the units in process. Based on this report customers order is solicited.

Operations manager sign the requisition and sends it to Factory, factory manager, having received the requisition, issues the required units of product at the address of customer, mentioned in the requisition. For logistics, Administration Department makes contracts with goods forwarding agencies.

Daily Sales Record

Sales force daily takes the sales record from all the distributors countrywide, and get it noted to operations manager of marketing department. Telephone/fax is used fro this purpose. This sales record is used as a controlling tool to check the market of products on daily basis.

Further it shows whether the short term sales goals, (monthly targets are being met or not and in which part of national market selling performance is not at par.
Marketing Research

Marketing Department of triple-em keeps a vigilant eye on the market through market research. For this purpose company hires a research firm.


New Product Development & Launching

Marketing department keeps itself abreast with the trends of market and when finds the room for a new product to be developed, it consults the idea with production, defines the new product idea in the terms of consumers, decides the brand name, gets package and label designed by consulting graphic artists, them decides pricing, distribution, and promotional strategies, mentions launching budget and launching date.
Triple-Em has launched a new product named Super Star on April 2002
MARKETTING PROGRAM OF
TRIPPLE-EM

To peruse its marketing (selling) objectives, triple em, first of all decides.

Budget Allocation
Company at first hand decides what level of marketing expenditure is necessary in order to achieve its marketing objectives. Marketing budget is determined generally as a percentage of sale goals. The total marketing budget of Triple-em for the fiscal year 2002-2003 is 10 million.

Marketing Mix Decision
Second step which company undertakes in developing its marketing program is to decide how to divide total marketing budget among the various marketing tools, commonly known as Marketing Mix, which company uses to achieve its marketing objectives. It includes


v Product
v Price
v Place
v Promotion

TARGET MARKET

Target market of company products includes all the consumers including all age groups, gender and social classes. As the selection of appropriate target market is paramount for developing a successful market program and launching market mix strategies. Company targets the market for its products by

MARKET SEGMENTATION

Company has divided the total market into various groups of consumers with similar needs to direct a suitable offer towards them.

Basis of Segmentation

Company has segmented its market on the basis of
v Age
v Social Classes
v Gender
As the target market and marketing mix strategies go hand in hand, so all the marketing mix strategies and decision are taken in conjunction with the above mentioned segmentation strategy.


PRODUCT

Triple-em is producing snack food. Snacks can be classified as conventional goods because it is purchased on regular basis as a consumer good.

PRODUCT MIX


Product Mix of Tripple-em has following width and depth

Width Of Product Mix
Triple-em is carrying three product lines.

POTATO CHIPS RANGE

The main line/range of the company’s product mix is potato chips. The products is this line are made from potatoes, which are generally called Potato Chips or crisp. Potato chips/crisps are lean and fried potato cut pieces, packaged in fine foil wrapper, having gas as a preservative. These chips are in various flavors.

NIMKO RANGE

Product line includes various products, which are generally made from ingredients like various kinds of pulses, beans (i.e.dal moong, channas) peanuts and almonds etc. These ingredients are fried, spiced and package.



EXTRUSION RANGE

Getting high market recognition and a large volume of company’s products overall, Extrusion range is the third product line and second in importance after potato chips line of product mix.

Extruded products have generally ingredients like rice, maize and maize flour, these snakes are generally shaped and prepared with heat not using oil.

WIDTH OF PRODUCT MIX



Potato Chips Nimko Extrusion
Mr. Crisps Nimko Mix Goal Motel
Super Crisps Dal Moong Dino Munchies

Fried Peanuts Catty Chins
Almoonds Giggly Waves
Whole Pistashio Wheelo Pops
|Cashewnuts Potato Stumps
Super Stars






DEPTH OF PRODUT MIX

Depth of product mix refers how many variants of each product are offered in the line i.e. size and formulations

DEPTH OF POTATO CHIPS RANGE


Brand Name Super Crisps Mr. Crisps
15GM 25GM 55GM 18GM
Flavors Plain Salted Plain Salted Plain Salted Salty
Bar-b-q Bar-b-q Bar-b-q Spicy
Paprika Paprika Paprika
Chilli Chilli
Salt & Vinegar Salt & Vinegar
Dill
T-Ketchup
Lemon & Chilli








DEPTH EXTRUDSION RANGE


Brand Gol Motol Dino Munchies Cathy Chins Giggly Waves Wheelo Pops Potato Stumps Super Stars
Weight 10
GM 20
GM 15 / 25
GM 25
GM 15/30/55
GM 15/30
GM 15
GM
Flavor Nice & Spicy Ketchup Cheese Ranch Pizza Salsa
Slat & Pepper Flamin Hot


DEPTH OF NIMKO RANGE


Brand Nimko Mix Dal Moong Fried Peanuts Almonds Whole Pistashio Cashewnuts
Size 20/40/100 GM 40
GM 18/40
GM 40
GM 40
GM 40
GM
Flavor Salty Salty Fried Salty Roasted Salty Roasted Salty Roasted Salty







BRAND
Super Crisp
Super Crisp is used in tow ways.

v In Potato Chips Range, Company Sells the Snakes with the name Super Crisp
v In all other rangers Super Crisp appears as umbrella brand along with the specific brand name.

TRIPPLE-EM

Tripple-em (Pvt) Ltd. is the corporate brand, which is also used along with super crisp brand name

PACKAGING

Primary Packaging

For the primary packaging, snakes are packaged in specially Laminated high barrier film suitable for tropical climate to protect the freshness and reach the consumer with fresh taste.

Secondary Package

Packaged snakes are further packaged in paperboard cartons for trade deliveries. But at the shelf place, snakes are displayed in primary wrapper/ packaging


TRIPPLE EM (PVT) LIMITED
List of Products

Potato Chips Range Flavors Rs
18 Gm Mr. Crisp Salty 5.00
Mr. Crisp Spicy
15 Gm Super Crisp Plain Salted 5.00
Super Crisp Bar B. Q.
Super Crisp Paprika
Super Crisp Chilli
Super Crisp Salt & Vinegar
25 Gm Super Crisp Plain Salted 10.00
Super Crisp Bar B. Q.
Super Crisp Dill
Super Crisp Paprika
Super Crisp Chilli
Super Crisp T. Ketchup
Super Crisp Lemon & Chilli
55 Gm Super Crisp Plain Salt 20.00
Super Crisp Bar B. Q.
Super Crisp Paprika
Nimko Range
40 Gm Nimko Mix Salty 10.00
100 Gm Nimko Mix Salty 20.00
40 Gm Dal Moong Salty 10.00
40 Gm Fried Peanuts Fried Salty 10.00
40 Gm Almonds Roasted Salty 35.00
20 Gm Nimko Mix Salty 5.00
18 Gm Fried Peanuts Fried Salty 5.00
40 Gm Whole Pistashio Roasted Salty 35.00
40 Gm Cashewnuts Roasted Salty 50.00
Extrusion Range
10 Gm Gol Motols Nice & Spicy 2.00
20 Gm Dino Munchies Ketchup 5.00
25 Gm Catty Chins Cheese 10.00
25 Gm Giggly Waves Ranch 10.00
30 Gm Wheelo Pops Pizza 10.00
55 Gm Wheelo Pops Pizza 15.00
30 Gm Potato Stumps Salsa 10.00
30 Gm Potato Stumps Salt & Pepper 10.00
15 Gm Catty Chins Cheese 5.00
15 Gm Wheelo Pops Pizza 5.00
15 Gm Potato Stumps Salsa 5.00
15 Gm Potato Stumps Salt & Pepper 5.00
15 Gm Super Stars Flamin' Hot 5.00

Packing Components

A part from wrapper to cover the product, packaging is being considered as a marketing tool by Tripple-em by including the following components.

Price
Price of Product is mentioned on in all packaged products

Brand
The specific brand of product along with umbrella brand, super crisp and corporate brand is mentioned

Labeling Information

Package is designed in such a way that it contains more and more information about the product such as
v Ingredients
v Instructions for use

Style

Product is packaged with great care so as to serve the marketing purposes. Packaging is done in a stylish way with eye-catching design; color combinations are keeping in view all other aesthetics elements in package.




PRODUCT POSITIONING

Positioning of product in the minds of consumers relative to competing products of company is based on following approach.

Positioning By Attributes

Tripple-em positions its products so far as “having high quality snacks with hygiene standards” concerns attributes.

Positioning By Product User

Tripple-em also understands the approach of positioning the product by its users. So it positions as

v It has positioned super crisp, almonds and peanuts towards upper middle class

v Has positioned upper mini, Mr. Crisp and caption chips in chips range and peanuts, channa, Daal Moong and Gol Motol, DinoMinches towards middle and lower middle class

v Extrusion rage is positioned towards children. All brands names in this range line have appeal for children such as Gol Motol, Giggly waves, Dino munchies etc.


PRICE

Triple-em is a profit-oriented business, so, its pricing policy is also profit oriented.

Pricing Objectives
Company peruses following objectives through its pricing strategies.

v Quality leadership
The aim of the company is to pioneer quality leadership through its pricing.

v Maximum Sale Growth

Second pricing objectives of company are to maximize the sale to reduce per unit cost and accomplish economies of scale. Company sets this objective by zeroing in, on the price sensitivity of various segments in the markets.

PRICING METHODS

Company tries to price its offer in terms of different segments of market.
Market Segmented Price
For pricing considers following segments in the market

v Upper Middle segment
v Middle segment
v Lower middle segment

Segmentation is based on the purchasing power of the customer.

PRODUCT PRICE AND VARIOUS SEGMENTS


HIGHER MIDDLE CLASS

High priced quality products are priced for high middle class.

Potato Chips Range Nimko Range Extrusion Range
Super Crisp Nimko Mix Potato Stump
Almonds Cattychin
Cashewnuts Wheelopops
Wholepistashu


MIDDLE MIDDLE CLASS

Following brands are priced for middle middle class people

Potato Chips Range Nimko Range Extrusion Range
Mr. Crisp Nimko Mix Dinomunchies
Super Crisp Fried peanuts Potato stump
Daal Moong Giggly waves
Super Star






LOWER MIDDLE CLASS

Low priced quality products are priced for lower middle class.

Potato Chips Range Nimko Range Extrusion Range
Mr. Crisp Nimko Mix Dinomunchies
Super Crisp Fried peanuts Super Star
Dal Moong Gol Motols


Target Costing Strategy

To quote a price for a segment of market, company then employ the method of Target costing, which specifies the price at which product must sell, given its target customer and competitors price, it is achieved by lowering elements of cost e.g. Crisp Mini, Mr. Crisp and Caption Chips, the packaging wrapper is used which is not aluminum coated so it considerably lower the production cost and product can be sold at desired price

Competitive Pricing

Company analyses and determine the competitor’s price for competitive offering. Company makes every effort to price the products close to the competitors. As the main concern of Tripple-em is quality leadership that entails high price, Company has competitive brand to respond the competitors low price. In potato chips range super crisp is quality leader but to counter the low priced competitors brands, captain chips have been launched as competitive brands.


TRIPPLE-EM
PRICE STRUCTURE
EFFECTIVE FROM JULY 01, 2002
S U P E R C R I S P R A N G E MR. CRISP
PARTICULARS POTATO CHIPS NIMKO MIX DAL FRIED PEANUTS WHOLE CASHEW
MOONG ALMONDS PISTASHIO NUTS
15 GM 25 GM 55 GM 20 GM 40 GM 100 GM 40 GM 18 GM 40 GM 40 GM 40 GM 40 GM 18 GM
Company Price /Packet 3.40 6.82 13.39 3.40 6.82 16.60 6.82 3.40 6.82 25.14 25.14 35.91 3.40
Sales Tax @15% 0.51 1.02 2.01 0.51 1.02 2.49 1.02 0.51 1.02 3.77 3.77 5.39 0.51
Invoice Price 3.91 7.84 15.40 3.91 7.84 19.09 7.84 3.91 7.84 28.91 28.91 41.30 3.91




































































































































































Market Price 5.00 10.00 20.00 5.00 10.00 25.00 10.00 5.00 10.00 35.00 35.00 50.00 5.00




TRIPPLE-EM
PRICE STRUCTURE
EFFECTIVE FROM JULY 01,2002
EXTRUSION RANGE


GOL DINO CATTY CHINS POTATO STUMPS WHEELO POPS GIGGLY SUPER
PARTICULARS MOTOLS MUNCHIES WAVES STARS
10 GM 20 GM 15 GM 25 GM 15 GM 30 GM 15 GM 30 GM 55 GM 30 GM 15 GM
Company Price /Packet 1.34 3.40 3.40 6.82 3.40 6.82 3.40 6.82 10.14 6.82 3.40
Sales Tax @15% 0.20 0.51 0.51 1.02 0.51 1.02 0.51 1.02 1.52 1.02 0.51
Invoice Price 1.54 3.91 3.91 7.84 3.91 7.84 3.91 7.84 11.66 7.84 3.91












Market Price 2.00 5.00 5.00 10.00 5.00 10.00 5.00 10.00 15.00 10.00 5.00








TRIPPLE EM (PRIVATE) LIMITED
EXPLANATION OF PRICE STRUCTURE OF NIMKO/CHIPS RANGE FOR UNREGISTERED RETAILERS
EFFECTIVE FROM JULY 01, 2001
S U P E R C R I S P R A N G E MR. CRISP RANGE
PARTICULARS POTATO CHIPS NIMKO MIX DAL FRIED PEANUTS
MOONG ALMONDS
15 GM 25 GM 60 GM 20 GM 45 GM 110 GM 45 GM 18 GM 40 GM 40 GM 22 GM
Company Price to Distributor 3.40 6.82 16.60 3.40 6.82 16.60 6.82 3.40 6.82 25.14 5.45
15% Sales Tax 0.51 1.02 2.49 0.51 1.02 2.49 1.02 0.51 1.02 3.77 0.82
Invoice Value of Distributor 3.91 7.84 19.09 3.91 7.84 19.09 7.84 3.91 7.84 28.91 6.27
Distributor,s Margin 0.35 0.73 1.71 0.35 0.73 1.71 0.73 0.35 0.73 1.94 0.55
Distributor to Retailer 3.75 7.55 18.31 3.75 7.55 18.31 7.55 3.75 7.55 27.08 6.00
15% Sales Tax 0.56 1.13 2.75 0.56 1.13 2.75 1.13 0.56 1.13 4.06 0.90
3% Further Sales Tax 0.11 0.23 0.55 0.11 0.23 0.55 0.23 0.11 0.23 0.81 0.18
Invoice Value of Retailer 4.42 8.91 21.61 4.42 8.91 21.61 8.91 4.42 8.91 31.95 7.08
Retailer's Margin 0.58 1.09 3.39 0.58 1.09 3.39 1.09 0.58 1.09 3.05 0.92
Suggested Consumer's Price 5.00 10.00 25.00 5.00 10.00 25.00 10.00 5.00 10.00 35.00 8.00
NOTE:- Retailer's margin includes their respective sales tax laibility.

PLACE

Place, ma word used interchangeably with distribution is a critical tool in marketing mix. It includes all the activities which company undertakes to make the product accessible and available to target customers.

PLACE STRATEGIES

Company undertakes the decisions regarding distribution of the product considering these factors.

Place Objective

The place objective of the company is to make the product available at the right time at right place and at right cost.

Product Category
As Tripple-em is dealing in the snakes food, which falls in fast moving consumer goods and perishable product category. So this characteristic of product product necessitates more and more direct marketing and distribution channel strength

So Tripple-em emphasize active and more direct distribution method in its marketing mix









CHANNEL OF DISTRIBUTION

Triple cm has tow tier channel distribution for delivering the products to end consumer








MIDDLEMAN (Intermediaries)

Distributor
Product is a first purchased by distributors, who purchases the product in bulk and then distribute it to retailers.

Selection of Distributor

Distributors are selected and number of distributors in an area is determined by the level of demand and adequacy of coverage.

Distributor Selection Criteria

Tripple-em has its won criteria and policy regarding selection of first middleman i.e. distributor, which is
v Wide market exposure


v Sound financial condition
v Good reputation
v Capacity
v Market position of distributors

Number of Distributors
Tripple-em has 157 distributors countrywide.

POLICIES REGARDING DISTRIBUTORS/MIDDLEMEN

v Distributors are made subject to following policies and conditions of company:
v Distributor is required not to engage himself in the distribution of competitor’s products, directly or indirectly.
v Distributor is made obligatory to act to add goodwill to company and avoid acts of omission and commission.
v Distributor is further agreed upon to pass on all the trade discounts and benefits granted by company to retailers.
v Distributor is also made subject to regularly purchase the stock of products according to targets set by company.
v Distributors have to maintain at least 8 days stock of every product according to size of market or quantity assessed by company.

CREDIT POLICY

All the sales are usually on cash but the Company also extends credit sales to the Distributors, depending upon reputation and dealings.


However company extends credit for 10-12 days, after that a distributor is required to clear the previous balance before placing the new orders. 70% parties working on advance payment and 30% parties working against security.

Claims Settlement

Distributors distribute the product to retailers, which keeps it in shelf, Gas is used in packing of snacks as a preservative and if leaked, during handling it retailer can claim to distributor for damage and distributor is provided claims for all the products which are damaged during distribution process

Margin Of Distribution Channel

As the tripple-em has strong brand equity there is a moderate margin given to the channel intermediaries and quite surprisingly this strategy is working well. During the recent survey conducted by us, retailers have shown somewhat satisfaction with trade margin because their investment does not remain blocked. As the product sells immediately, their profit turnover per investment is increased.

MARGIN POLICY
Margin to Distributors
All the distributors countrywide (157) are company’s registered distributors. Their margin range average is 9.5% and different products have different margin.
Margin Of Retailers
Margin of registered retailer ranges from 16.5% to 17% of consumer prize in all three ranges. Margin of unregistered retailer is 13.5%, which is 3% less than the registered retailers.

SALES FORCE

Apart from the intermediaries in distribution channel, the major role in distribution (Place of products is played by company’s own sales force. Sales force members are company’s representatives who work as close liaison with the distributor in all the areas of distribution. Sales Force is active in the market to secure all the interests of company regarding sales.

Company sales force remains in constant touch with all the distributors and visit regularly retail outlets so as to facilitate and accelerate sale activities. Sales Force visit the retail outlets with distribution vans when to launch promotional schemes and place promotional material in retail store or placing pos material in store.
When new products are launched, Sales force itself makes arrangement in collaboration with distributors t distribute samples, placing posters etc in retail stores.

Sales Management
Marketing department has distributed the whole country into four zones for better coverage and control.

Central Zone
It is headed by regional sales manager who organize sales with 10 sales officers
Main Cities
It covers Lahore Sargodha, Sailkot and Gujranwala, Gujrat Lalamosa Chonia Seikhopura.

North Zone
A regional sales manger and 10 sales officers and 2-area field manager head North zone


Area
It covers the areas of Rawalpindi, Islamabad, Abbotabad, Jehlum, Muree, and Peshawar.

South Zone
A regional sales manager and 10 sales officers and 1 area field manager also head it.
Areas
It covers Karachi and Quetta

West Zone
Regional sales manager and 6 sales officers and assistant sales manager head it.
Area
It includes areas on Multan, Bahawalpur and Faisalabad, Sahieal Rahimyarkahan.

























ROMOTION

Fourth marketing tool used by the company is promotion.

PROMOTION MIX
The promotion mix of Tripple-em includes the following tools/ methods.

v Advertisement
v Sales Promotion
v Public Relationing

Factors Setting The Promotion
Company consider the following factors in setting its promotional mix

Type of Product
As the company’s products are consumer goods it priorities the promotional tools in following ways












PUSH VERSUS PULL STRATEGY
Pull Strategy

Company emphasizes pull strategy in selecting its promotional mix tools especially advertising and public relationing. Pull strategy makes sense to be prioritized because of strong brand equity and brand awareness, brand loyalty and brand preference as well as the brand is well differentiated. Most of the promotional tools are generally directed towards and consumers to create a tremendous demand among them thus persuading the intermediaries to purchased the product.

Push Strategy

For the promotional tools, such as sales promotion, Company emphasizes push strategy. This strategy involves activities such as trade and sales force promotion in order to persuade channel intermediaries to carry the products and promote it to end consumers.

ADVERTISEMENT


Tripple-em uses this promotional tool to communicate information about the product Marketing Department manages this tool including others, but does not have its own advertisement department. For creation and execution of advertisement company hires various independent advertisement agencies. Currently firm is hiring interflow communications (PVT) Ltd which is responsible for all the advertisement execution. A recent interaction has been going on with Red Communication.


Budget

Budget of advertisement is determined by the Marketing Department, which is also responsible for all the promotional mix. However, it is finally approved by the Chief Executive.

Advertising Budget for year 2001-2002 of the Tripple-em is 5 million, which is 50% of the total marketing budget.

MEDIA
Tripple-em intends to communicate the information about the product via following media.
Electronic Media
It includes
v T.V.
v Radio
Print Media
It includes
v Newspapers
v Magazines
v Posters and Banners
Outdoor Advertisement
To target the consumers when out of home company use
v Corrugated hoardings
v Banners
v Posters
v Buntings etc


ELECTRONIC MEDIA
Television
To communicate its message to the all the segments of markets, T.V. is considered best media of advertisement for company. And it spends more on T.V. than other medias.

T.V. is specially used at the time of launching the new product (potato stumps recently launched) and when consumer promotion scheme is launched. Perhaps it is the best strategy being pursued by company to use T.V. for advertising the consumer promotion resulting in increased sales and a new push to Brand equity.

Ratio
Company for advertising through radio, the second major category of electronic media uses F.M. radio channel, which covers the major urban area, a potential segment of market.

Magazine, Print Media
After T.V., Magazines, with national publication are the preferred media for advertising by Tripple-em. Because these are kept with the readers for long time, hence, getting more exposures.
Currently, Prints ads of various brands are being published in Suspense Digest, Jasoosi Digest and Herald etc
Press
Company also uses various dailies alternately on random occasions.
Outdoor
Corrugated Hoardings
Equally important media is considered by the company is corrugated hoardings.


Poster, banners, buntings
Informal media through it is company also uses posters, banners and buntings for advertising. These small print ads are used specially at the time of launching new products. On July 12th, Potato stumps were launched and sales force through out the
Country, placed posters and buntings in all the retail shops, banners were hoisted on promotional vans, all promoting the product.

SALES PROMOTION

The second and number one in importance, element of company’s marketing mix is sales promotion.
SALES PROMOTION
It includes short-term incentives to stimulate quick and greater purchase of product by consumers or the trade. Marketing Department of Tripple-em pursues following sales promotional activities

v Trade Promotion
v Consumer Promotion
v Sales Force Promotion

Trade Promotion
Objective of company for trade promotion is to
v Persuade the distributors and retailers to carry the brands, carry more and more units.
v To encourage distributors and retailers to promote the brands, especially retailers are persuaded by these efforts to promote the product by proper display and featuring means the enhanced probability of product selection by consumer at the time of purchase etc.


TOOLS/METHODS OF TRADE PROMOTIONAL
Company undertakes following methods for trade promotion.
Trade offer/discounts
Throughout the year trade discount is offered on list price.
Special Schemes
Special schemes are introduced for retailers in specific areas such as motorway and hill stations by offering the retailers allowances, gifts to promote the product.
Free Goods, Gifts
Incentives are offered to distributors for achieving the monthly sales target or to push the product to the shelf place. Such incentive include:
Free Goods
12+1 is launched for intermediaries i.e. on purchasing the one-dozed packets of products one or two packets are given free and launch on different products at different times.
Special Discounts
Special discounts are given on large purchases, institution, and special orders.
Grand Gift Schemes

Grand Gifts Schemes are launched for retailers for stipulated time in order to achieve various sales targets. Such gifts as, Air Tickets, Electronic appliances, consumer goods are offered as incentive.

Point of Sales (POS) Material
POS material such as Baskets, Racks bearing the corporate brand and hangers product brand, which facilitate retailer in carrying product are provided to retailers as an incentive for proper display.


Shop Signs
Counter signs and non-signs are provided to retailers bearing company brand and retailers name.
CONSUMER PROMOTION

For consumers, sales promotional activities such as prizes, Gifts and offerings are launched with the objective of achieving sales target the main strategy is that consumer promotion is launched with heavy advertisement on Electronic Media i.e. Television and F.M. channel of Radio. It serves both the purposes of short term sales target achievement as well as building brand equity (Brand awareness, preference, etc.)

BUSINESS AND SALES FORCE PROMOTION

In order to get business leads and motivate sales force to further sales interests of company in an efficient way, marketing department launches Business and Sales Force Promotion.

TOOLS
Sales Contests
In order to motivate and induce the sales people to improve their sales performance, such incentives are offered to

v Salesmen who become successful in achieving monthly targets.
v Salesmen who show extraordinary performance in retail store product displays and market coverage, etc.


Speciality Advertisement
For Business lead, company also uses Speciality Advertisement, Speciality advertisement includes small low-cost useful items bearing company name, address, brand/s or advertisement message etc. these are quite helpful in creating goodwill among customers (primary, secondary and final) triple-em uses common items such as

v Table Calendars, Wall Calendars and Table Calendars, bearing the umbrella brand and company name and address.
v Small religious books, (booklets containing Holy Verses, Religious guidelines, principles) also bearing company name at the end, these speciality items are distributed to distributors, retailers and consumers by sales force.

Public Relationing
Company also includes this element in its promotional mix at a limited scale by:
v Sponsoring the various cultural and sports events such as Independence Day celebrations, sports market.
v News about the company’s image in various business journals, health publications i.e. Aurora and Health & Science and various dailies published, to improve company’s image.









TRAINING PROGRAMM

When I was referred to tripple-em (pvt) ltd, I was interviewed by the assistant brand manager Mr. Iftikhar-ul-Haq who was supervisor of the training program. He prepare my training schedule which was totally changed later on.

More than 95% time I was spent in marketing and sales department as per company’s policy. The purpose of company’s training program is to conduct market research through internees. So, I have done this market research.
In the first week of my internship program I complete the results of previous researches, which had done before starting my internship.

In the second week of internship I interview different persons of marketing program and understand the working of them. During the interview I observe that everyone were not ready to give me the critical information about their job. They share with me general type of information and don’t give me specific nature of information because it was against the policy of the company after the second week Mr.khalid Hamid Khawaja asks me to prepare a questionnaire one for retail survey and other for consumer survey which cover some specific purpose. Within two days I prepare questionnaires and present to Rana Iftkhar-ul-Haq Assistant Brand Manager he approves these questionnaires and then presented to Khalid Hameed Khawaja for further approval.

The areas, which they have assigned to me, were Gulberg, Barkat market, Ferdos market. Snack food is a luxury item is Pakistan. So, the target market of snack food is elite class people. Within one week I was referred toward the distributors which were responsible to supply goods in these areas.



I complete my retail survey through the distributors sales force. During retail survey I was helped by some very kind people, which were Sajid shab (SSO), Mudsser shab, Irfan shab and Umar shab. They guide me time to time and share with me the practical knowledge of their related market. I really did enjoy during the market visit.
In the fifth week I complete consumer survey with one of my female class fellow. I with my class fellow went to the market and ask questions from targeted customers. So, this expertness was very difficult for me because I did not have experience about females. So, I tackle this problem by gaining help of my female class fellow.

In the sixth week of my internship program I request to National Sales Manager for market visit in other city. He refers me toward regional sales manager Syed Asad Azeem. I went to Sargodha with regional sales manager for two days visit. It was my first and enjoyable experience. I learn so many things from that market as well as from the experience of regional sales manager.

In last two weeks I did work on research finding and conduct interviews of finance administration and purchase departments alternately I also visited the factory office and production department with the prior permission of general manager.