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.

Listen to the Sound of the DayYesterday, Today & Tomorrow

By

Naveed Ahmed Khawaja

Date: 19th November 2009

A Company with a Heart and Soul

Our Products

• 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


• The Early Years - 70’s– Economic Challenges

• Rupee de-valuation, Labor Unions unrest, Surging imported RM prices, Market too small (branded biscuits)

• EBM making losses everyday– Tethering on the brink of bankruptcy– Incurring losses of Rs 5000/- per day

– Traditional & Old style Biscuit industry• BP – Montgomery – Sunshine etc.

• Branded market small & stagnant

• No concept of “Strong Branding”, “Positioning”

• No Product innovation/ differentiation etc.

The Industry Issues


• 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


The Strategy of 70’s• Taking Competitive Edge

• Biscuits marketed as “food in between meals”• Biscuits marketed under PF & EB umbrellas• Through strong & modern “Branding”• The Pied Piper concept launched

– The Sound of Yesterday, Today & Tomorrow

• The Legend Leads• Gained Instant Popularity, Awareness, Relevance, Trial and

Loyalty• A larger than life icon…

• But the Total Market did not grow! • Competition did not compete


• 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 70’s contd...


• 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 80’s


• Intense competition & market growth – EBM market share slipped– Standing Still…. Was not an option– A change was imminent– With increasing input costs, increasing competition &

market share slip strategic business decisions had to be taken

– EBM adopted a “high volume, low margin strategy”

The Strategy of 90’s


• Price Increase Freeze in mid-90’s– Objective

• Create barriers of entry for new entrants

• Make biscuits more affordable for consumers to aid conversion from loose biscuits to packaged

• Allow economies of scale & capacity utilizations

– Outcome• Market grew volumetrically

• Small players crashed out as their scale of operations could not sustain the price freeze

• EBM focused on increasing internal efficiencies– New plant expansions– Balancing, Modernization & Replacement (BMR)

The Strategy of 90’s contd…


• 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


• Market Penetration Strategies

– Product Launches & Re-launches– EBM’s true Marketing Success Stories

• Sooper Re-launch - leading the turnaround of business & growth of overall biscuit market Sooper 1.avi Sooper 2.mpg

– Capitalizing on Market Leadership Position• RIO Double Treat – product innovation (2 creams)• Marvell – Product Innovation in Shape• Party Re-launch

– Seeking new consumers through new consumption occasions

• Sandwiches Re-launch – Over 40 years old brand– Tapping up-country markets

• Peanut Pik & Pista Re-launch

The Strategy of 2000 & Onwards contd…


• Focus on increasing Distribution Penetration into Rural Markets– Rural Development Programs– Opening of New Towns & Direct Servicing

• Focus on Demand Generation– Out-spending competition on media– Trial generation & repeat purchase

• Consumer Promotions• Brand Activations

– Heavy investment behind CSR initiatives to project positive brand & company image

• Demand of Brands > Ability to Supply– 5 Focus Brand Strategy

The Strategy of 2000 & Onwards contd…


How did we do that ?

“Power of Vision”

• To be recognized as a LEADING and PROGRESSIVELY FORWARD looking FOOD COMPANY, providing the best quality products to everyone in Pakistan

• To be an INSTITUTION financially healthy, promoting universal human values and growing as a useful, purposeful corporate citizen

Vision


• 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


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


Our Philosophy• Food is “Rizk”

• “Hygiene” a part of a bigger concept of Pakeezgi

• What is the concept of PAKEEZGI for us at EBM?

Innate realization that the Food we offer, MUST be of the highest Quality

Hygiene at the work-place In our THOUGHTS & ACTIONS In having a SENSE of RESPONSIBILITY and the HEART to

do what’s right


– 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 9001-

2000 Certifications• State of the art manufacturing processes with investment of over

Rs 2 billion

Sense of ResponsibilityTowards Consumers


– 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 ResponsibilityTowards the Nation




We make the world around us better.

– Sensitivity to the Environment• Proactive Environmental

practices• Water Treatment Plant• Separate Area for Solid Waste

Management• ISO 14001 Certification• Only Biscuit company to have

received the Environment Excellence Award for 5 consecutive years



• Primary focus of Corporate Social Responsibility (CSR) initiatives on 3 key areas:

• Health

• Education

• Sports

HEALTH

EDUCATION SPORTS

EBM

Caring Corporate Citizen




“LAST SEVEN YEAR HIGHLIGHTS”

01-02 TO 08-09

Where are We?

1,028,5781,144,607

2,074,804

3,065,518

4,244,828

5,577,5825,587,576

6511223

900,000

1,400,000

1,900,000

2,400,000

2,900,000

3,400,000

3,900,000

4,400,000

4,900,000

5,400,000

5,900,000

'01 - 02 '02 - 03 '03 - 04 '04 - 05 '05 - 06 '06-07 '07-08 '08-09

81%

48%

31%

11%

31%

-2%

+17%Sales Volume – Master Cartons







5



Recognized as



• Leadership– Power of Vision (No Dreams – No Gains)– Magic of a Rallying Call– Directing Peoples Power, Energy, Exuberance & Passion– Make the Change happen

• Branding– Learn to reject, Research & Explore, Spend time

• Technology– Invest ahead of time, Be the 1st to introduce, Take risk

• Customer Care– Suit your business to customers needs, otherwise– Customers will suit themselves

• Work Environment– Open, Challenging, Competing, Empowering, Team working & Fun working

The Mantra

The Harder You Work…The Luckier You Get!!

• 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



THANK YOU

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.

Documents

soul slide

overall market

total market

competition market share

branded market small

small branded biscuits

joint venture company

new consumers