Internship Packages)

Packages Pakistan Ltd

Table of ContentsPART – IINTRODUCTION TO PACKAGES LIMITED.............................................................7PACKAGES TODAY......................................................................................................11COMPANY PROFILE....................................................................................................13Mission Statement............................................................................................................18Quality Policy...................................................................................................................19EH&S POLICY STATEMENT.....................................................................................20

PART-IIORGANOGRAM OF PACKAGES LIMITED............................................................22ORGANOGRAM OF MARKETING DIVISION............................................................23MANAGEMENT & PERSONNEL MANAGEMENT................................................24

3. PERSONNEL WING:............................................................................................27RECRUITMENT AND SELECTION CRITERIA:.....................................................30OTHER FACILITIES AND BENEFITS PROVIDED BY PACKAGES LIMITED35

PART-IIIISO CERTIFICATION...................................................................................................40STRATEGIC BUSINESS UNITS OF PACKAGES LTD...........................................41

PRE-PRESS DEPARTMENT....................................................................................41PRODUCTION DEPARTMENT...............................................................................42

Paper & Paper Board......................................................................................................46PACKAGING DIVISION...............................................................................................47FLEXIBLE LINE............................................................................................................53PACKAGES LIMITED TOTAL SALES 2003 (In %)................................................55CORRUGATED DIVISION...........................................................................................56SOME OTHER DEPARTMENTS INVOLVED IN PRODUCTION........................60

Coating Department:...................................................................................................60Cutting & Creasing Department (CC)......................................................................60Lamination Department..............................................................................................60Folding & Gluing Department...................................................................................60Dispatch Department...................................................................................................60Quality Control Department......................................................................................61Technical Department.................................................................................................61

RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT.............................62COATES LORILLEUX (INK FACTORY)..................................................................64TETRA PAK....................................................................................................................65GRAPHICAL ANALYSIS OF PACKAGES LIMITED.............................................66

MARKET CAPITALIZATION (PAK RUPEES ‘000)............................................66MARKET CAPITALIZATION (US $ ‘000).............................................................66SALES (PKR IN MILLION) FOR THE PERIOD 1972 - 2003..............................67SALES (US $ ‘000) FOR THE PERIOD 1972 - 2003...............................................67PROFIT AFTER TAX & DIVIDENDS (RS IN ‘000)..............................................68INVESTMENT 1994-2004..........................................................................................68

Administrative Sciences, Quaid-e-Azam University, Islamabad 1


MARKETING DEPARTMENT....................................................................................691) INDUSTRIAL PRODUCTS DIVISION:................................................................70

WORKING OF THE INDUSTRIAL MARKETING DEPARTMENT:...............74Pricing Policy for Industrial Products:......................................................................84Distribution Policy for Products.................................................................................84

CONSUMER PRODUCT DIVISION (CPD)................................................................86

PART-IVTRAINING PROGRAMME......................................................................................90CONSUMER PRODUCT DIVISION........................................................................90SALES FORCE............................................................................................................92MARKETING FORCE...............................................................................................92PRODUCTS AND ITS VARIENTS...........................................................................94SALES STRATEGIES................................................................................................97MARKETING STRATEGY.......................................................................................98MARKETING BUDGET............................................................................................99MARKET SEGMENTATION...................................................................................99MARKETING RESEARCH.......................................................................................99MARKET POSITIONING STRATEGY..................................................................99BRANDING STRATEGY.........................................................................................100PACKAGING STRATEGY.....................................................................................101LABELING................................................................................................................101PRICING STRATEGY.............................................................................................101PRICING POLICIES................................................................................................102COST OF PRODUCTION........................................................................................103CONSUMER PURCHASING FACTOR................................................................103PRICING POLICIES OF THE COMPETITORS.................................................103GOVERNMENT TAXES.........................................................................................103AREA PRICING........................................................................................................103ROFIT/UNIT..............................................................................................................103PROMOTION/ADVERTISING STRATEGY.......................................................104PROMOTIONAL POLICIES..................................................................................105PROMOTIONAL BUDGET....................................................................................106ADVERTISING.........................................................................................................107ADVERTISING AGENCY.......................................................................................109QUALITY CONCEPT IN MARKETING..............................................................110

SWOT ANALYSIS........................................................................................................111(EXTERNAL ANALYSIS)...........................................................................................112CONCLUSION..............................................................................................................113RECOMMENDATIONS..............................................................................................114Annexure-1.....................................................................................................................116Annexure-2.....................................................................................................................117Annexure-3.....................................................................................................................118Annexure-4.....................................................................................................................126Annexure-5.....................................................................................................................127Annexure -6 (References)................................................................................................128



ACKNOWLEDGEMENT

Thanks to almighty Allah for enabling me to fulfill all the requirements for the

completion of my internship report.

It would not be a justice in presenting this internship report without mentioning

the people around me who have been inextricably related with the completion of

this report. For assisting me in all respect and regards to complete this report my

heart felt thanks to my supervisor Mrs. Basit Tayyab, who enriched my knowledge

with wealth led ideas to pursue and power of writing this report. It could not have

been possible to accomplish this report without her thoughtful guidance and

expertise. It is also a great pleasure to record honorable regards to all those who

helped me lot in learning and enhancing my knowledge and ability during the

internship at packages limited especially to Miss Asma Shahzad (Brand Manager,

Feminex), Mr.Syed Imran Moonis (B.M, Tulip) and Mr. Imran (RSM) and along

with them I am very obliged to Mr. M. Abbas, who also helped in all kind of

indoor and outdoor activities.

Finally for all possible errors, omissions and shortcomings in writing of this report

only I am responsible for which I hope that all concerning regards of this report

will forgive me.

SAJJAD AHMED RAUF



EXECUTIVE SUMMARY

Packaging is the use of the containers and components with the addition of

labeling to protect, identify, merchandise and facilitate the use of the product.

Even the nature gifted us various items with packaging though they are not

labeled. But all is done only to protect it and to provide the ease to user. From

very early ages men became aware about the importance of the packaging and

various processes were started to get safe, hygiene, facilitated goods with different

type of packaging, not even the food items got attention for packaging but also the

other livelihoods were paid attention in this regard especially when we concern the

marketing prospects. It is impossible for all kind of industry to make the goods

and then also got the expertise of their product’s packaging. They try to save their

opportunities and get the packaging material of their choice from other packaging

industry.

Packages limited Pakistan came into existence in 1956 started with the corrugated

line which helps in the production of the various types of cartoons and with the

passage of time packages limited enhanced the production facility and started with

the production in flexible line. Flexible line packages includes the packaging of

these kinds of products like detergents, bags etc. In 1982 packages limited has a

joint venture with the TETRA PAK INTERNATIONAL and established the

TETRA PAK PAKISTAN LIMITED and started with the packaging of liquid

products. To meet the ink consumption in the preparation of the packaging

material. The company agreed to make the joint venture with the coates lorilleus

which afterwards transfer the manufacturing facility to the company coates

lorilluex Pakistan limited.



In 1982 packages limited established the consumer product division (CPD) and

production of the rose petal started and today packages limited has three consumer

brands named ROSE PETAL, TULIP AND FEMINEX. And also holding the

production facility of the consumer products for various institutes like PIA, PIZZA

HUT, KFC AND PRIME MINSITER HOUSE.

Today packages limited almost covering 35% of country’s facility. The major

share is holding by PTC and contributing almost 50% and consumer product

division holds total of 10% of the production of packages limited.

Packages limited also posses the quality standard certificate like ISO 9000, 9001

and now she is contributing the ISO 14001. Packages limited also provides the

various facilities to its employee at all level just get them involved and get them

motivated. Today packages limited provide basic facility to its customers in the

protection, preservation and convenience in shape, size and weight for handling.

Packages limited always looks toward more improved and innovated products

(packaging) for her customers only due to the reason that they believe on

continuous improvement in the form of satisfaction from both ends.



PART – I

INTRODUCTION TO PACKAGES LIMITED LAHORE



INTRODUCTION TO PACKAGES LIMITED

Rapid growth of industrial economy bases on different factors Packaging is one of them.

Packages Limited was born out of a dream to set up in Pakistan industries of excellence

based on local raw material and talent. Packages Limited is a leading packaging

manufacturing company of Pakistan. It is the sole largest industry in Pakistan serving

about the 35% needs of the country. Syed Baber Ali Shah, who was the first managing

director of Packages Limited, went to Sweden in 1954 to negotiate the contract with

Akerland & Rausing of Sweden. Akerland & Rausing had been the leading paper

converters in Europe. In Pakistan, there was no previous experience of a packaging

industry. Therefore, Pakistanis needed technical collaboration with their Swedish

partners. In the beginning, the first problem was the selection of site. Finally, Lahore was

selected due to the following reasons:

Easy availability of workers.

Easy availability of raw material.

Easy transportation all over the country.

So, Ali family provided the capital, land, labor, management and local experts while their

partners provided technology, machinery, experts and also training to Pakistanis. Syed

Baber Ali was the first Managing Director.Mr. Syed Mratib Ali Shah laid the foundation



stone on The 26th of March 1956. The construction was started from the Solid Board

Department and by the end of October, 1956 the main shed of the factory was completed.

At the same time the Swedish engineers with the help of Pakistani staff installed

machinery. Packages Limited started operating in May 1957 with a paid up capital of

Rs. 4.94 million as a joint venture between the Ali group and Akerlund & Rausing of

Sweden. In the beginning 22 Swedish experts came to Pakistan to run the factory and to

train the Pakistani staff. In 1958 production of packaging cartons for different industries

was started. Usually, the

packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea, Pharmaceutical

products and many other products.

Over the years, the Company continued to enhance its facilities to meet the growing

demand of packaging products. Additional capital was raised from sponsors, International

Finance Corporation and from the public in making the total paid up capital to Rs. 31

million in 1965.

As a first step, Packages commissioned its own paper mill in 1968 having production

capacity of 24000 tones of paper & paper board based on waste paper, agricultural waste,

wheat straw and kahi grass. As the demand continued to grow, it led the Company to

expand and the end of 1995 increased its annual capacity to 50000 tones of paper &

board and corresponding converting ability.

Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan Limited with

Tetra Pak International to manufacture paper for liquid food packaging and to sell

Tetra Pak packaging equipment. After Tetra Pak in Tetra shape, it also introduced brick

shape packing. Both shapes are very popular among liquid preservation industries. The

main industries covered by Packages Limited are:

Soap Industry

Shoe Industry

Tissue Industry

Tea Industry

Tobacco Industry

Food Industry



Sweets & Confectioneries

In Tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares owned by

Syed Baber Ali Shah and 49% shares owned by Tetra Pak International.

Since 1957, Packages has been producing inks for its own consumption. In 1993, the

Company agreed to form a joint venture with equity participation from Coates Lorilleux,

world’s second largest printing ink manufacturer to produce inks for Packages Limited

and the general market. Packages Limited own ink manufacturing facilities now

transferred to the new company, “Coates Lorilleux Pakistan Limited”. In July 1994,

Coates Lorilleux Pakistan limited, in which Packages Limited has 55% ownership,

commenced production and sale of printing inks.

Also in 1993, a joint venture agreement was signed with “Mitsubishi Corporation of

Japan” for the manufacture of polypropylene films at the industrial estate in Hattar,

NWFP. This project, Tri-Pack Films Limited, commenced production in June 1995 with

equity participation by Packages Limited 33%, Mitsubishi Corporation 27%, Altawfeek

Company for investing Funds, Saudi Arabia, 11% and public 29%.

In 1995, an agreement was signed with UHDE of Germany to setup a plant for the

manufacture of Hydrogen Peroxide (H2O2), an environmentally friendly bleaching

chemical, with an annual capacity of 12500 tones, near Lahore, Punjab. This project

Oxypak Limited was a separate company, which was projected to commence production

during 1997-98.

In 1996, a joint venture agreement was signed with Print care (Ceylon) Limited for the

production of flexible packaging in Sri Lanka. This project Packages Limited Lanka

(private) limited commenced production in 1998. Packages Limited owns 62% of this

company.

In 1999-2000 Packages Limited has successfully completed the expansion of the flexible

packaging line by installation of new rotogravure printing machine and the expansion of

the carton line by a new Lemanic rotogravure inline printing and cutting creasing

machine. The machines are in production since December 1999.

The Company is at an advanced stage of implementing SAP, an Enterprise Resource

Planning System, which through a common database allows the Company to be fully



integrated and be live in respect of all its business information. This will enable the

Company to serve its customers better.

The Rubber Division working under the Research Development & Control Department is

also selling its products in the local market as well as selling to the Defense Authorities

apart from providing services to its own departments.

Another important service department of the Packages Limited is its “Power Plant”. In

1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply

of power for its production lines, Packages has also established its own 10 MW power

plant in 1991, the cost of which was 180 million rupees. Packages Limited saves a lot of

money in this regard. For example, if they get power from WAPDA, then WAPDA

charge more than 6 rupees per unit but the expenses of its own production is almost one

rupees per unit.

In the field of consumer products, Packages Limited has shown tremendous potential and

commendable talent. Consumer Product Division provides 12% share of the Packages

total sales. The consumer products of the company are “Rose Petal” Tissues, Tulip

Tissues and Feminex. The production of Rose Petal was the first introduction of tissue

paper industry in Pakistan. Through Packages has introduced so many brands of tissues.

Rose Petal is now the market leader of tissue paper industry in Pakistan. Rose Petal has

more than 75% share of tissue paper industry in Pakistan. Other consumer products are

Paper Cups, Paper Plates, Paper Napkins, Paper Hot Cups and Wet tissues of Rose Petal

have been introduced in the market in 1992. Beside it many institutional sales are also

handled by the consumer product division in Paper cups, paper plates etc. which will be

discuss later in section of Consumer Product Division.

(Source: Annual report 2000 & Company’s Brochures)



PACKAGES TODAYNow Packages Limited is exporting its managerial skills & technical expertise to the third

world countries like,

Indonesia

Tanzania

Kuwait

Saudi Arabia

Nigeria

Zambia

Somalia &

Russia.

Packages Limited has also provided technical assistance to Tetra Pak for general

packaging in other countries like,

Kuban

Russia

Technical Collaboration:

AMCOR Flexible, Australia

Stora Enso, Sweden

Joint Venture Partners:

Name of Joint Venture Joint Venture with

Tetra Pak Pakistan Limited Tetra Pak International

Coates Lorilluex Pakistan Limited DIC Asia Pacific Pte Limited



Tri-Pack Films Limited Mitsubishi Corporation of Japan

Packages Lanka (Private) Limited Print Care Group of Sri Lanka

Packages limited is also exporting tissues to

Iran

Bangladesh

Sirilanka

Indonesia

United Arab Emirates &

Maldives.

Packages started with the work force of 500, and now it has a work force of 3500. In

which union and non union employees are included. 3000 workers are from union side

and rest of 500 employees is non union, all the office bearers are non union employees. A

separate Personnel Department is there, to look after the problems of the workers. Today

Packages Limited is considered to be a leader in the Packaging field in Asia.

Packages Limited has completed the balancing, modernization, replacement and

expansion program, which began in 1994. This has enabled the company to minimize

capacity constraints and improve quality to meet local and foreign competition as well as

improve its environmental protection facilities.

(Source: www.packages.com.pk& Management)



COMPANY PROFILE

Board of DirectorsAsadullah Khawaja (Chairman)

Syed Hyder Ali (Managing Director)

Kamal Afsar

Khalid Yacob

Kirsten Rausing

Markku Juha Pentikainen

Mujeeb Rashid

Shamim Ahmad Khan

Syed Shahid Ali

Tariq Iqbal Khan

AdvisorSyed Babar Ali

Company SecretaryAdi J. Cawasji

Executive Committee

Syed Hyder Ali Chairman

Mujeeb Rashid Member

Khalid Yacob Member



Audit Committee

Shamim Ahmad Khan Chairman

(Non-Executive Director)

Tariq Iqbal Khan Member


Syed Shahid Ali Member



(Director & General Manager)

Adi J. Cawasji Secretary

Business Strategy Committee

Syed Hyder Ali Chairman


Syed Aslam Mehdi Member

Khalid Yacob Member

System and Technology Committee

Mujeeb Rashid Chairman

Khalid Yacob Member

Suleman Javed Member

Rating Agency: PACRACompany Rating: AA

Auditors



A.F. Ferguson & Co.

Chartered Accountants

Legal AdvisorsHassan & Hassan Lahore

Orr, Dignam & Co. Karachi

Bankers

ABN Amro Bank

Allied Bank Limited

Askari Commercial Bank Limited

Bank Al-Habib Limited

Citi Bank N.A.

Crescent Commercial Bank Limited

Deutsche Bank A.G.

Faysal Bank Limited

Habib Bank Limited

Habib Bank A.G. Zurich

Muslim Commercial Bank Limited

NDLC-IFIC Bank Limited

PICIC Commercial Bank Limited

Standard Chartered Bank

Union Bank Limited

United Bank Limited

Head Office & WorksShahrah-e-Roomi

P.O. Amer Sidhu

Lahore - 54760, Pakistan

PABX : (042) 5811541-46, 5811191-94

Cable : PACKAGES LAHORE



Fax : (042) 5811195, 5820147

Karachi FactoryPlot No. 6 & 6/1, Sector 28

Korangi Industrial Area,

Karachi-74900, Pakistan

Tel. : (021) 5045320, 5045310

Registered Office & Regional Sales Office4th Floor, the Forum

Suit # 416-422 G-20, Block-9 Clifton

Karachi-75600 Pakistan

PABX: (021) 5874047-49, 5378650-52

: (021) 5831618, 5833011

Fax : (021) 5860251

Regional Sales Office2nd Floor, G.D. Arcade

73-E, Fazal-ul-Haq Road, Blue Area

Islamabad-44000 Pakistan

PABX: (051) 2276765, 2276768, 2278632

Fax : (051) 2829411

Zonal Sales OfficesC-2, Hassan Arcade

Nusrat Road

Multan Cantt. - 60000 Pakistan

Tel. & Fax: (061) 784401-2

Uzair Enterprises

Teer Chowk Bhuta Road

Sukkur - 65200 Pakistan



Tel. & Fax: (071) 616138

2nd Floor, Sitara Tower, Bilal Chowk,

Civil Lines, Faisalabad - 38000 Pakistan

Tel. & Fax: (041) 629417

Shares RegistrarFerguson Associates (Pvt.) Limited

State Life Building No. 1-A

Off I. I. Chundrigar Road

Karachi-74000 Pakistan

Web Presencewww.packages.com.pk

(Source: www.packages.com.pk)



Mission Statement

To be a leader in the markets we serve by providing quality

products and superior service to our customers, while

learning from their feedback to set even higher standards for

our products.

To be a company that continuously enhances its superior

technological competence to provide innovative solutions to

customer needs.

To be a company that attracts and retains outstanding

people by creating a culture that fosters openness and

innovation, promotes individual growth, and rewards

initiative and performance.



To be a company which combines its people, technology,

management systems, and market opportunities to achieve

profitable growth while providing fair returns to its investors.

To be a company that endeavours to set the highest

standards in corporate ethics in serving the society.


Quality Policy

We at Packages Limited are committed to producing quality

products which conform to our customers' requirements and

strengthen our position as a quality-managed company. Our

pledge is to provide the market with the best quality

products at competitive prices through a customer-driven

and service- oriented, dynamic management team. To meet

this obligation, the company will continue updating skills of

its employees by training, acquisition of new technology, and



regular re-evaluation of its quality control and assurance

systems. Appropriate resources of the company will be

directed towards achieving the quality goals through

employee's participation.


EH&S POLICY STATEMENTPackages Limited shall:

1. Minimize its environmental impacts, as is economically and

practically possible.



2. Save raw materials including energy and water, and avoid

waste.

3. Ensure that all its present and future activities are conducted

safely, without endangering the health of its employees, its

customers and the public.

4. Develop plans and procedures and provide resources to

successfully implement this policy and for dealing effectively

with any emergency.

5. Provide environmental, health and safety training to all

employees and other relevant persons to enable them to

carry out their duties safely without causing harm to them

selves, to other individuals and to the environment.

6. Ensure that all its activities comply with national

environmental, health and safety regulations.

This policy shall be reviewed as and when required for the betterment of the same.

(source: www.packages.com.pk)



PART-II

ORGANOGRAM OF PACKAGES

ORGANOGRA OF MARKETING DIVISION

A DISCUSSION ON PERSONNEL & HUMAN RESOURCE DEPT.



ORGANOGRAM OF PACKAGES LIMITED


Board of Directors

Advisor Managing Director Executive Board

General Manager

M.I.S Manager Production Manager

R&D Manager Admin.Manager

Power Manager E.H&S Manager

Mechanical Manager Cost & tax Manager

Mill Manager Finance Manager

Deputy G. Manager

H.R.D Manager

Commercial Manager

Marketing Manager

Store Manager

I.R Manager


ORGANOGRAM OF MARKETING DIVISION

(Source: Management)


DEPUTY G.MANAGER

MARKETING MANAGER

D.M. Manager

Industrial Marketing

Department

CONSUMER PRODUCT DIVISION

A.M.M Karachi

A.M.M LahoreA.M.M

Islamabad

SENIOR SALES

MANAGER

REGIONAL SALES

MANAGER

ASSISTANT SALES

MANAGER

ASSISTANT SALES

MANAGER

SALES EXECUTIVE

SALES EXECUTIVE

SALES EXECUTIVE

SALES EXECUTIVE

SOUTH ZONE

SUKKAR ZONE

MULTAN ZONE

CENTRAL ZONE

NORTH ZONE

FAISALABAD ZONE

MERCHANDISING


MANAGEMENT & PERSONNEL MANAGEMENT

Regardless of the size or type of the business, any organization’s most important asset is

its Human Resources. Human Resources management strives to achieve

organizational goals and goals of the employees through effective personnel programs,

policies and procedures. Personnel management program varies from organization

to organization. If there is good performance of personnel department, then the

employees of the company will be motivated and satisfied. The department manages and

mobilized the human resources. There are several personnel functions, such as:

Job Analysis & Design

Recruitment & Selection

Performance Appraisal

Training & Development

Compensation & Health

Employee Relations

Negotiation With Union

Maintaining Discipline

Welfare Programs For Employees

Grievance Handling

Packages Limited possesses a well-organized and systematically operated Personnel

Department. The success and effectiveness of this department’s policy and programs

can be judged from the fact that no major problem has come to surface in the recent

years.



There are 3500 workers at Packages Limited at present. In 1957, when it came into

production there were no more than 500 workers employed. The retirement age is 58

years for employees. Personnel (Industrial Relations) Manager heads the Personnel

Department. Under his supervision five sections or wings of the Personnel Department

work:

Legal Wing

Personnel Staff Wing

Personnel Wing

Welfare Wing

Establishment Wing

1. LEGAL WING:In every organization, personnel function includes the legal aspect of human resource

management. As long as organizations exist, the disciplinary problems tend to occur.

The Legal Wing looks after all the legal aspects and issues concerned with labor and

personnel. This wing handles all legal issues of labor. Senior personnel officer heads it.

Its main concerns are:

MisconductCivil and Criminal CasesRevenue CasesThe Legal Wing, internally as well as externally, and with all other industries deals all

legal problems of Packages Limited. It can also hire the services of outside lawyers. It

also handles disputes between the labor and management and settles controversial issues.

This wing also conducts the case of organization related to Income Tax. Two types of

ordinances find their application here:

Industrial Relations OrdinanceStandard Order OrdinanceThe Industrial Relations Ordinance gives power to employee against the employer.

Usually it helps in solving the disputes, strikes, slow production, elections and other

problems of labor unions. The Standard Order Ordinance gives power to employer



against the employee and it enables to conduct inquiry according to civil law about

leaves, disobey, misconduct, dishonesty, negligence, theft etc. Packages Limited has a

computerized system. When a complaint is received from any department a "Show Cause

Notice" is given and the worker is required to submit his reply within 2 days. If the reply

is not received then a letter of inquiry is issued. If the worker fails to plead his case

effectively, then, in accordance with the advice of the inquiry committee, the Personnel

Manager has the right to terminate the worker's services or take some other action against

him.

2. PERSONNEL STAFF WING:This wing includes the personal staff of the Personnel Manager. The job of the clerk is to

carry out all the orders and information given out by the Personnel Manager.

Recruitment Policy:Packages Limited prefers fresh graduates than experienced once, except for high

managerial posts where experience is must. The management believes in developing the

employees according to the requirements of the organization.

Employee Grades:There are different grades for workers. These are:

Grade-1 G-1

Grade-2 G-2

Grade-3 G-3

Grade-4 G-4

Grade-5 G-5

Grade G-5 is for supervisors and G-1 is lowest grade in the organization. Packages

Limited has four different executives’ grades. These are:

Executive-1 E-1

Executive-2 E-2

Executive-3 E-3



Junior Executive J.E

E-1 is the most senior in executive group and J.E is the most junior in this group. There

are three Managers grade in Packages. These are:

Manager-1 M-1

Manager-2 M-2

Manager-3 M-3

In this group M-3 is most senior and M-1 is joiner. The retirement age is 58 years and

extension is not granted. If the employee is needed he or she is hired on contract basis.

3. PERSONNEL WING:The personnel wing performs two main functions:

1) It looks after all the sports activities at Packages Limited.

2) It looks after the disputes between the management and the workers if they

arise.

There is a sports hall, cricket ground, a football ground, a hockey ground and a volleyball

court at Packages Limited. The Sports Complex comprises of two courts for Squash and

Two Badminton courts. In sports complex there are two table tennis tables, Carom Board

and Chess. Annual sports are held every year and prizes are distributed to the winners.

The Personnel Wing holds all these activities.

4. WELFARE WING:The function of Welfare Wing is to look after all the welfare activities and facilities on

the factory premises. This wing controls the Fair price shop, the Canteen and all the

Messes. The evolution of this wing was the result of the management’s thought that it is a

big deal to feed and clean a big factory. It is directly under the Personnel Manager.

Mess:In Packages Limited, they believe that, the primary conditions for good health are

nutritious food which is prepared under the most hygienic conditions in the company and



served at highly subsidized rates. There are four types of mess in Packages Limited

Lahore:

VIP’s MessOfficer’s Mess

Supervisor’s MessWorker’s Mess

The food is provided at very less cost to employees in these messes. Charges of different

messes in Packages Limited from each employee are:

> Officer’s Mess 180 rupees/month

> Supervisor’s Mess 60 rupees/month

> Worker’s Mess 60 rupees/month

Officer’s Mess is for executive grade employees, supervisor’s Mess is for supervisors,

worker’s Mess is for labor class and VIP Mess is for guests and VIPs.

Fair Price Shop:This wing supervises the Fair Price Shop, from where employees can get all the things of

daily use at lower rates than market. All consumers’ products manufactured by Packages

Limited are sold over here at 20% discount.

Sanitation Wing:The job of this wing is to clean the factory area. There are two supervisors and 35

sweepers.

5. ESTABLISHMENT WING:The Establishment Wing performs the following functions:

Maintaining Personnel RecordsRecruitment

Maintaining Personnel StrengthMaintaining Leave Record of All Workers

Keep Check on all the StaffThis wing consists of one senior personnel officer, two assistant personnel

officers and, section in charge and 13 timekeepers.



Time Office:The most important section of the Establishment Wing is the “Time Office”. All

employees and workers of the Packages Limited are enrolled here. In the Time Office,

employees’ records from appointments till retirement are kept, like transfer, promotion,

leaves etc. All appointments are made only when there is a new vacancy or need for

replacement. There is an “Appointment Register” in which details like name, father’s

name, and appointment date, address, department etc. are entered. This register also tells

about the appointments made in a year and strength of all the departments.Along with the

Appointment Register, there is another register known as “Strength Register”. It shows

the number of workers employed. All entries regarding the wages, allowances etc. are

kept in it. All new workers are appointed on probation for one year. Three probation

reports are given during this period.

This wing also maintains the personnel records. The record is being used to, calculate

wages and salaries, make work plans for employees and evaluate their performance.

There are two types of employees in the organization:

Employees who are paid on monthly basis.

Employees who are paid on hourly basis.

Now in Packages Limited computers make all the records of employees. A card exists,

for noting the time spent on job by workers, which are paid on hourly basis.

The card notes time of starting and finishing by punching machines. These cards are

collected by Production Department, and then they come to Time Office, where they are

kept in record. Then the Time Office calculates the wages of hourly workers. In Packages

there are three shifts:

First Shift 06.30 a.m. To 03.00 p.m.

Second Shift 02.55 p.m. To 11.25 p.m.

Third Shift 11.20 p.m. To 06.25 a.m.



This Wing also supervises the activities of Gate. For making their employees punctual,

the employees who come late are stopped at the gate and they are allowed to enter after

the approval of the related divisional manager. There is a gate pass system in Packages

Limited. People who want to go out-side the organization in duty hours; they have to

submit a "Gate Pass" signed by their head of department. The time of leaving the

organization and coming back to the organization is written at gate pass. The record goes

to Time Office.

There is a casual leave of 10 days and medical leave of 16 days on the basis of medical

certificate issued by the company's medical officer. The hourly staff is allowed 14 days of

annual leave. However, for one-day medical leave no medical certificate is required.

Strict disciplinary action is taken if an employee remains absent without prior

notification.

An advisory note is issued for more than three absents. Packages Limited also gives

bonuses for extra work. For each hour of overtime, the hourly wage is doubled. For

monthly paid workers there is an attendance register. They can get leaves also. If an

employee is absent for more than ten days without leave then he is issued a "Charge

Sheet".

RECRUITMENT AND SELECTION CRITERIA:Packages Limited has designed a sound but easy method of recruitment. When any

department needs an employee, it sends its requirement to the Human Resource

Department, which in turn advertises the vacancy in the leading newspapers and asks for

the qualified people. In case of the posts requiring some years of experience, only

interview method is used to select the best candidate.

Recruitment of Workers:Minimum qualification for the post of the workers is Matriculation 2nd Division with

science subjects. The workers should not be more than 21 years old and must be

medically fit. These are employed as "Apprentice Trainee". If the performance of the

worker is satisfactory during the probation period, he is hired. Normally workers get



promotion after two years on the recommendation of their supervisors. This post is not

advertised.

Recruitment of Diploma Holders:Diploma holders in Electrical, Mechanical and Instrument Engineering are also

employed. They are given a training of six months. They are employed for supervisory

jobs.

Recruitment of Executives:

Job Identification: When any department needs an employee, it sends its requirement to the Human Resource Department.

1. Recruiting & Hiring: For recruiting and hiring some factors are taken into

consideration. These factors are as follow:

Nature of the job.

Time required filling the vacancy.

i. If there is time to fill the vacancy, advertisements are given in the newspapers.

ii. If the vacancy has to fill immediately, the Human Resource Department contacts the authorized institutions, universities etc.

Budget constraints.

Process: The recruiting and hiring process starts from the applications submitted by the

degree holders. They provide their CVs along with the applications. These applications and CVs are screened out on the basis of:

I. Merit

II. Institute

III. Experience etc.

After this, approximately 50% of the applicants are selected for the further process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs).



Then the H.R. Manager takes a test. This test is based on:

I. English comprehension

II. Basic mathematics

III. Data sufficiency

IV. IQ

V. Some questions about the particular job, for which the applicants have applied.

After taking the test, the top 10, 20 or 30 applicants (according to the job requirement) are chosen for the first interview. At this stage the selection of applicants also depends on the H.R. Manager and the departmental head. Normally 30% of the applicants, who have given the test, are selected for interview.

Through telephone calls or letters, the selected applicants are informed about the date and time of the interview. Normally two interviews are taken

H.R. Manager and the departmental head take first interview. In this interview they observe,

I. Alertness

II. Confidence

III. Leadership skills

IV. Relevant knowledge

V. Social acceptance

VI. Interests

VII. Communication skills

VIII. First impression

IX. Maturity

According to these observational factors rating or grading is made. Normally 5% rating in each factor is acceptable. Then successful candidates are called for final interview.

Final interview is taken by:

I. General Manager

II. Deputy General Manager



III. Human Resource Manager

IV. Departmental Head (sometimes)

Previous traits or factors are once again examined.

After the final interview, the selected applicants are sent for medical test and then the Industrial Relations Manager issues them the appointment letters.

Training & development: Appointed persons are trained for one year, the are given the title “Management

Trainee”

In the Industrial Marketing, the trainees are called “Sales Executives” and after one they are given the designation of “Assistant Manager Sales”.

The trainee is given a brief view (orientation) of the company, various processes, rules & regulations etc. this orientation may be from two weeks to two months.

After the orientation program, the participants may ask to submit short report or presentation.

After the 6 months training, the trainee goes to H.R. Manager and tells him what he has learnt in this program.

Some external courses may be offered not only to the existing employees but also to the new trainees. These courses are held in,

I. LUMS

II. PIM

III. Intek Solution

Recently Packages has jointly entered into a diploma program with LUMS. It is 18 weeks program called Diploma in Business Administration. Two sessions of this program has passed out till now.

Performance & Appraisal: Performance & appraisal are two sides of a coin. Immediate officer appraises

performance.

For the appraisal of the performance, there is a Performa, which is filled by immediate officer.

This Performa is named as (PPE) Performance Planning & Evaluation.



There are seven sections in this form. The particulars of the candidates are written on the top of the form.

Performance Plan: In this section, some standards and targets along with time frame are given. The target given in Packages Limited is known as “SMART”.

S= Specific

M= Measure able

A= Attainable

R= Realistic

T= Time frame

Performance Evaluation:In this section, the net results of the standards & targets given in section # 1 is evaluated or checked. Whether the person can achieve the targets in the required time frame or not.

Competency Dimension:In this section, different behavioral indicators, in accordance with the performance are checked. These indicators are as follows:

Communication Skills

Work Organization

Result Orientation

Team Player

Customer Consciousness

Self-Confidence

Leadership Qualities

Development Orientation

Strategic Visioning

Business Knowledge

Critical Reasoning



Human resource Development

Performance Evaluation Results:

In this section, there are two parts.

Part A Section # 2 score (%)

Part B Section # 3 score (%)

Total score of Part A and Part B are calculated here.

Strengths & Limitations:In this section, the strengths and limitations of the trainee or subordinate is written. This is all up to the immediate officer.

Performance Improvement Plan:In this section, the immediate manager gives some suggestions and recommendations.

Comments:The employee/ subordinate and the manager give their comments. Employee comments may be how ha found the work place? Who supported him? And the manager gives the comments according to his observation. In the last they put their signatures with date.

OTHER FACILITIES AND BENEFITS PROVIDED BY PACKAGES LIMITED

Health & Safety:To safeguard the health and safety of the employees Welfare Wing takes care to the

medical facilities provided to employees. In this regard, periodic check ups, inoculations,

and family planning programs are arranged. A dispensary with qualified doctors is

working for this purpose in the factory premises.

The health of the employee at the time of recruitment has to be sound and fit persons are

employed who are medically examined at the time of appointment.

Bonus:All the employees get handsome bonus every year, which varies from grade to grade.



Employees Old Age Benefit:Packages Limited has two different types of pension schemes. One is for management

staff and other is for workers. In management staff pension scheme, Packages contributes

13% and the employee contributes 4.5% of wages. Investment is made in Government

securities by this amount. Retirement age is 58 years. The employee gets 100% pension

up to his life. In workers pension scheme the Packages contributes 5% of the wages,

which ensures a reasonable pension on retirement. After employee’s death, his widow

gets 50% of pension amount. After wife death the children can take 20% of pension until

they are less than 21 years.

House Rent:Employees can get house rent at the rate of 30% of their basic salary. More than 50% of

the employees own their own house.

Adult Education:All illiterate workers have the facility of adult education. Qualified teachers teach adult

education classes. Workers are paid for the time they spent in the classes as these studies

are during the working hours. Books and other educational materials are provided free.

Ali Industrial Technical Institute:For solving the problems of technical staff for Packages Limited, there is an independent

training institute established by the “Ali Group” with the cost of Rs. 5 million. The

institution's annual output is 230 students in different fields. In this school preference is

given to the children of employees of Packages at the time of admission. Scholarship of

Rs. 150 per month is given to all students.

Hajj Scheme:The Packages Limited sends every year three employees from Grade V and one person

from J.E and the above categories for Hajj Pilgrimage on its own expenses. Draws are

taken out for this purpose. Any worker who wants to go on Hajj on his own expanses is

given one month paid leave.

Personal Cleanliness:



Every worker is provided with a cake of soap each month for personal hygiene. All the

workers are given uniforms. The factory provides the washing facilities and maintenance.

Lockers, change rooms and showers are available to all the employees. Each worker gets

two free uniforms and one pair of shoes annually and also has the locker facility.

Overtime:Over time facility is available for all the workers.

Service Awards:The Company gives a wall clock to an employee who completes his 20 years of service in

Packages Limited. Company also gives a valuable wristwatch to employee who

completes 25 years service.

Recreational Facility:The management also encourages recreational activities. Employees in groups are

encouraged to go on excursion trips and the Company pays the transportation and other

miscellaneous expenses. Employees can also use the rest house owned by Packages

Limited in Murree.

Group Insurance:Company’s policy is to have its employees safe and sound financially. So Group

Insurance facility is available to all employees. The amount paid to employees on

account of group insurance differs as follows:

WORKERS Rs. 30,000

J.E Rs. 45,000

E-3 Rs. 55,000

E-2 Rs. 65,000

E-1 Rs. 75,000

Above E – 1 Rs. 85,000



Attendance Award:Among the workers up to Grade V, who shows a good record of attendance throughout

the year, is provided monetary rewards and certificates?

Conveyance Allowance:Conveyance facility is given to the workers in the form of the Conveyance Allowance.

Employees are provided adequate allowance for the maintenance of their vehicles. Some

employees are enjoying the company's transport facilities. For the outdoor activities

employees are provided enough fund to bear their expenses. A beautiful parking facility

is also available.

Mosque:One beautiful mosque is in the factory premises so that everybody can offer his prayers,

and I observed that, considerably large number of employees uses this facility.

On job training:Packages Limited attached a great deal of importance to the training programs of the

employees to help them to increase their skills and expertise. This helps to increase the

efficiency of the employees.

Library:There is a library of moderate size in Packages Limited. This library works under the

Research, Development & Control Department. Many employees during the lunch break

spent their time in it. All Newspapers are available here.

Social Security:Social Security Scheme is applicable to all the workers of the company who are drawing

up to Rs. 1800. In case of injured employees, the company ensures full payment to the

worker by paying the balance, in advance in addition to benefits given by the social

security.



PART-III

QUALITY STANDARDS AT PACKAGES LIMITED

STRATEGIC BUSINESS UNITS

PRE-PRESS PLANNING DEPARTMENT

PRODUCTION DEPARTMENT

PAPER & BOARD MILL

PACKAGING DIVISION

CARTON LINE

FLEXIBLE LINE

CORRUGATED LINE



ART DEPARTMENT

R.D & C DEPARTMENT

COATES LORILLEUX

TETRA-PAK PAKISTAN

QUALITY STANDARDS AT PACKAGES LIMITED

ISO CERTIFICATIONISO 14000: Realizing its responsibility toward environment, Packages started its

ambitious comprehensive programme on "Environment, Health and Safety". In the past

few years, over US$100 million have been invested on new processes and technology out

of which US$20 million were spent exclusively on environmental projects including a

chemical recovery plant. Under this program, we are focusing to improve:

Energy Conservation

Water Management

Effluent Management

ISO 9000: Packages Limited obtained certification for its production facilities in

phases. Currently Packages has ISO 9000 certifications for all its production facilities and

is working on ISO 9001:2000 revision. The first certification was obtained for Flexible

Line in 1995, which to-date has been renewed twice. Certifications for Carton Line and



Tissue Division were obtained in 1997 and 1998 respectively and have been renewed

once. Paper and Board Mill and Corrugation Division were certified in 1999 and are due

for renewal in 2003.


STRATEGIC BUSINESS UNITS OF PACKAGES LTD

Paper & Board Mill.

Packaging Division

o Carton Line

o Flexible Line and Poly & Paper Conversion

o Corrugated Division

Consumer Product Division

Coates Lorilleux (Ink Factory)

Tetra Pak Pakistan

Basic Colors for Printing:1. Yellow

2. Cyan (Blue)

3. Magenta (Red)



4. Black

Printing Modes in Packaging Division: Carton Line (Offset Printing)

Flexible Line (Flex graphic & Rotogravure Printing)

Corrugated Division (Flex graphic Printing)

PRE-PRESS DEPARTMENT:Pre-Press is the nerve centre of

Packages Limited. This is where concepts and ideas are developed and woven with

marketing strategies of our customers to attract the end users of the products produced by

our customers.

This department has been revolutionized over the last 15 years and compared to the past

when most of the work was done by hand; we now have graphic designers and computer

artists who make the soft copies of the designs. These halftone images and texts are

simultaneously directed from computers to:

Image setters;

Plate making devices (CDI, Digital System for Flexo);

Digital engraving machines

In the Art and Camera Department, we have state-of-the-art computer systems where

digital files are produced instead of photographic negatives.

For achieving high quality in all of printing methods (Roto, Flexo and Offset), our Pre-

Press Department is equipped with the latest technology in Cylinder, Photo polymer and

Plate making equipment which provide excellent support to various Production

Departments.

Though our Pre-Press Department is equipped with the latest technology, we know that it

is the imaginative mind of the conceiver that makes the real difference. Our Pre-press

staff is qualified from such fine institutions as National College of Arts, Fine Arts

Department of the Punjab University, and Printing & Graphic Art College.



To keep their knowledge up to date and keep them abreast with the latest technology, we

enhance their professional expertise by sending them abroad from time to time for

exposure to different printing set-ups and visits to relevant exhibitions.

PRODUCTION DEPARTMENT: Planning and Production are the

most important departments in Packages Limited. Production department controls all the

operations under the factory. Planning department is responsible to plan and organize the

allocation of jobs to various lines or divisions in a way that their maximum capacity is

utilized and that the delivery is given to the customer by the given date.

Production Manager is the head of Production department and is responsible for the

production function. There is also one Planning Manager, which is under the Production

manager. The Production Manager looks after the production while the Planning

Manager supervises the Planning Section. The heads of the following departments are

directly answerable to Production Manager and they have to present their special

problems to him for advice and help:

Carton Line

Corrugated Division.

Flexible Packaging Division

Poly & Paper Conversion Department.

Art Department.

Camera Department.

Coating Department.

Cutting & Creasing Department.

Lamination Department.

Folding and Gluing Department.

Dispatch Department.



Quality Control Department.

Coates Lorilleux (Ink Factory).

The Production Planning and Control unit is also directly under the Production Manager

and acts as the brain cell for him. Production Department prepares internal planning of

the whole Paper & Board division. It takes into account the total capacity of the

machinery, and the manpower. It also arranges the resources to attain maximum

utilization. The other goal is to reduce the wastage of resources. The Planning

Department acts as a coordinator between the Marketing and Production Departments.

This is very important in the sense that if there is no communication between the

Marketing and Production Departments, a lot of confusion will be created.

Production Procedure: The sales staff is in direct touch with

the customers. After the business has been finalized, an Internal Sales Order (ISO) is sent

direct to the Production, Planning and Control Department for checking and planning out

the production schedule. The Planning Officer and his staff communicate and correspond

directly with sales staff. Sales staff also deals with Art Department in the initial stages of

the business negotiations. Art Department prepares comprehensive, color schemes and

alternate suggestions for the approval for the customer. The direct link of the Art

Department ceases after the customer has approved the comprehensive. First of all the

sales executive gives the customer design and made job reference to the Planning

Department where Planning Assistant for Art & Camera sends the job to Art Department

for finalizing the ultimate shape of the product’s design. They also prepare mechanical

for the Offset and Flexographic jobs. The job then moves to Camera department, where

the staff prepares the printing negatives followed by Production Department who prepare

the printing plates. The plates will either go to proof press or for mass production to

offset presses. The order received by the customer to Marketing Department may be:

New job

Amended old job



Repeating job

In order to develop a new job, to create a new product or to give special suggestions to

the customer, sales staff takes help from Development Manager. Development Manger is

in touch with all the facilities available at the factory and develops the projects until it is

fit for mass production. The new job is first sent to Art and Camera Department for the

Art & design to be printed. In case of repeat order, the Production Department will

receive the ISO with the sample and the job will be sent to the Planning Department.

Planning Department issues a Job Card, as soon as the Job Card is made out, Paper &

Board stores arrange material. The immediate requirement is indicated in the Job Card,

which has to be available in stocks, while the long-range requirements are stocked up.

Production Manager has to foresee the future requirements. In case of new development,

special materials are to be ordered. When substantial orders are expected in a particular

line then raw materials will have to be ordered. For example, if there is trend of packing

polyethylene bags then polyethylene Granules will have to be bought ahead of time. After

Offset Department and Poly & Paper Conversion Department (PC) the job run through

Cutting and Creasing, Folding and Gluing and is sent out through Dispatch Department.

The jobs emanating from Paper Converting & Offset Department go directly to the

Dispatch Department. One important function of the Dispatch Department is to prepare

Dispatch Notes for the goods sent out whether by trucks or by railway.




Paper & Paper BoardProcess:

Our products are tested for high performance in terms of

strength, stiffness, gloss and machine-ability. Packages Limited is among the first

companies in the world to use environment friendly process of manufacturing paper &



paper board through a mixture of wheat straw, cotton linter, recycled pulp and wood

pulp.

Wood Free Paper: We specialize in making different kinds of paper which

Includes high gloss writing paper, poster paper, fluting paper and liner for shipping

cartons.

Food Grade Board: Most common board varieties include Duplex Board,

Bleached Board, Food Grade board and Card Board. A specialized liquid packaging

board is also produced in our Paper & Board Mill to cater to the need of customers who

manufacture and supply aseptic packaging for milk, cream, oil, fruit juices and other

sensitive food products.

PACKAGING DIVISIONSow the Quality

CARTON LINE:



This is the largest printing section of Packages Limited. This

department has the largest share in the total Packages Limited sales, which is about 55%.

There are 12 printing machines in this section, which are used for printing on duplex

board. There are two Varnishing machines and one laminator machine. This printing

facility is available from two to six colors. These machines use oil-based ink. Normally

they print Cigarettes cartons, Biscuits, Shoes boxes, tissue cartons and Tea boxes.

PRINTING MODE:In the Carton Line the printing Mode is offset.

Offset printing is the art of printing from a flat surface. In this method, first the Plate

(cylinder) takes ink and coats on the Blanket (cylinder) but the reflection is reverse (off)

on the Blanket. Further sheet (white duplex board) passes in between two cylinders,

Blanket and Impression. Now on the sheet printing is straight (set).

Each Offset machine has different cylinders i.e., six-color machine has six cylinders, and

five-color machine has five cylinders and so on. Each cylinder is used for the printing of

a specific color. The cylinder takes the ink from the ink pan and prints it on the

paperboard running on the other cylinder. The paper goes forward and then another

cylinder prints another color and so on, until the sheet is printed according to the right

format. The Duplex board is used in this form of printing. The weight of board is 240 to

490 grams.

PROCESS FLOW:


Ink Plate Blanket

Sheet

Sheet Feeding


DESCRIPTION:

In Carton Lime the sheets for printing, come from Paper & Board Mill. These

sheets are first coated so as printing can be done.


Offset Printing

Cutting &

Creasing

Separation

Folding & Gluing

Bundling

Dispatching

Flats/Unit cartons

Bundling


In Carton Line, Offset printing is done. As I have earlier discussed there are

twelve machines for the purpose of printing. If the requirement of job is six

colored, it is sent to the six-colored printing machine.

When the sheets have printed, these are sent to another section where cutting &

creasing is done.

After the cutting and creasing, the flaps or unit cartons are separated from the

main sheet

After this if the customer wants these flaps to be folded & glued. Then these flaps

are sent to folding & gluing section. Otherwise bundles are made and sent to the

dispatch section.

OFFSET PROOF:

In Carton Line there is a section known as Offset Proof. In section, the sample (proof) of

the required job is taken before the bulk production. This is done just to verify that after

printing and cutting & creasing the flaps or unit cartons are same as required be the

customer.

CONSTRUCTION OF CARTONS:

Straight Tuck-in: e.g. Magic Depoxi Steel carton

Reverse Tuck-in: same as Straight Tuck-in but reverse in flaps.

Crash Bottom: Tuck-in on one side and on the other side crash bottom.

4-Point Glued: e.g. Wall’s Solo.

6-Point glued: e.g. Packs of Nirala Sweets.

Quick Lock Tuck-in Top: Tuck-in on one side and Crash Bottom on other side.

Full Seal: e.g. Rafhan’s custered glued from both side.

Hinglet Carton: e.g. cigarette cartons.

4-Point Glued and Tuck-in Top: e.g. packs of Ding Dong Bubblegum.



Top & Bottom: e.g. shoes cartons

i. Self-Lock Carton

ii. Glued Carton

iii. Stitched Carton

EQUIPMENT: One 1-color printing machine

HEIDEL BERG

Six 2-color printing machines

PLANETA

ULTRA MAN V

Three 5-color printing machines

ROLAND 800

ULTRA MAN V GS

One 6-color printing machines

ULTRA MAN VII-G

TWO LACQUE

MAJOR CLIENTS: Lever Brothers

Nestle

Pakistan Tobacco Co.

Procter & Gamble

CONSUMER AREA: Tea Cartons



Detergents

Soaps

Shoe Cartons

Food Cartons

Cigarette Industry

Biscuit

Match Industry

LEMANIC 82H MACHINE:

This machine can work equal to five departments. This is the latest machine, not only in

Packages but also in Pakistan for the finest printing. Printing mode used in LEMANIC is

rotogravure. This machine comes under the Carton Line but the difference is this,

printing method is rotogravure and instead of sheets, complete reel is used.

Process Flow:

DESCRIPTION:


Duplex board Reel

Reel Stand Festooning

In feed Unit

Printing Units

Embossing cylinder

Dispatched

Bundling Cutting & Creasing


The process starts from the reel stand unit. White duplex board reel is attached to

the reel stand. From the reel stand the reel automatically starts passing through the

next section. In this section at a time two reels are connected to reel stand. One

reel starts processing and other one is on stand by. The joint of these reels may be

automatic or manual. The process of one is completed in 20 minutes.

In the next unit, Festooning, mainly two works are done:

It makes the alignment of the reel

It makes the paper tight according to the given speed.

The next unit, in feed, feeds the board to the next unit for further process, which is

printing.

There are six printing units; the necessary printing units are used according to

requirement of job. The printing method is Rotogravure. Seventh unit is for

varnishing. Two types of varnishing is done:

Water Base varnishing.

Solvent Base varnishing

The purpose of varnishing is to protect the board from water and oil effects and

also to make shine on it.

In the next unit, quality of printing is checked. The machine is totally

computerized and without any manual work it can check the quality and if there is

any deviation, it can warn the supervisor.

In the section unit, cutting & creasing is done. Dyes are used for this purpose and

machine works automatically.

The operator instructs this unit, and after a certain limit the bundles of flaps are

collected by the machine and are sent to the last section.

In the last unit dispatching is done manually.



FLEXIBLE LINENo quality, No life.

Flexographic line: On our flexographic line, up to eight colours flexographic

printing can be done on paper, poly-coated paper and films. We have the first ever gear-

less press in the country which has the ability to print real life images on materials like

Polyethylene, OPP, Special paper and Polyester. With the addition of Video Mounter

System, the printing stereos can be mounted with one micron dot accuracy, which

virtually eliminates the mis-registration from the print.

Rotogravure Printing: Sophisticated quality packaging with computerized controls,

makes rotogravure printing an extremely attractive option. With the help of latest

technology, including online web cams and auto registration, customers can get up to

eight colors of very high quality printing results. Our rotogravure printing section also

has the latest in- house cylinder making and engraving facilities. Commonly used

printing substrates on our rotogravures are: PET, BOPP, Metallized OPP, Pearlised OPP,

Paper and PVC. Rotogravure is particularly suited to food packaging where colourful

package designs and preservation of food quality are important considerations.

Lamination: Packages Limited has both solvent base and solvent less

laminators. With the help of our modern machines even the most complex structures of

three to four laminations can be done on our lamination facilities. Equipped with Italian

technology and computerized control, we can laminate BOPP, Polyester, Al foil, Met

OPP, Met PET, .E. paper as faster as 250 m/min with continuous production due to auto

splicing. Automatic viscosity control system ensures consistent quality. R&D center at

Packages Limited helps customers develop cost effective laminates to suit their needs.



Extrusion: Packages have our own mono- and multi-layer extrusion facility that can

extrude polyethylene of different grades and colours. The Canadian technology with

computerised control and monitoring of each layer on our 3 and 5 layer extrusion line

enables us to produce high output to meet our customers' demands and new market trends

as well. We extrude a number of specialized films which includes oil, ghee, detergent and

food films. These specialized films are known for their strength and high barrier

properties. We also have the on-line slitting option on our line which makes our system

more efficient.

Bag & Sleeve making: Bag making is an integral part of our Flexible Line. We

have the capability to provide the following variety bag constructions: Side Seal, Double

side seal, Bottom Seal, Three Side Seal, Bottom Gusset Bags and Side Gusset Bags. We

have automated sleeve making machines on which we make shrinkable PVC sleeves.



PACKAGES LIMITEDTOTAL SALES 2003 (In %)

(source: www.packages.com.pk){annual growth trend}



CORRUGATED DIVISION

For large-scale packaging, Packages Limited has been manufacturing “Corrugated

Cartons” since 1971. These cartons are produced in different sizes and are used for

transporting consumer products from manufacturer to retail outlets. The share of

Corrugated Department in Packages Limited total sales is almost 20%, which is second

after the Carton Line. Corrugated cartons are of great value for the export of fresh fruits,

garments and shoes. A wide variety of gums tapes for sealing corrugated cartons are also

manufactured

The production process was completed in two halls. Paper needed for this purpose was

also prepared within the factory premises at the Paper & Board Mill. Then this paper was

first processed through the corrugated machine, which transforms the paper into single

wall and double wall as required and mentioned earlier. Afterwards, the corrugated are

processed through the Flexo machine where they are shaped according to the requirement

of the customer, for example, into a rectangular or square shape. A gluing unit is also

attached with the Flexo machine, which sticks the cartons on specific places. Some time

stitching is required which is done at another machine.



Process Flow of Making Corruwall (CWCs) Sheets:


Reel / Liner

Flute Plant

C Flute

Dispatching

Bundling

Corowall Sheets

Cutting & Creasing

Heating & Gluing

Double Baker

B Flute


MACHINE FOR MAKING CORRUWALL SHEETS:

The machine used for making or preparing Cornwall sheets, is named as

UCHIDA (it is the company name). It has imported from Germany. It has six

units. These six units are as follow:

1st Unit (C Flute)

2nd Unit (B Flute)

3rd Unit (Double Baker/Facer)

Heating Section

Slitter & Scorer Section

Auto Down Slugger Section

TYPES OF CORRUGATED SHEETS:

> Single Wall

> C – flute > B – flute Double Wall

> B+C flute Single Facer

> E – flute

PRINTING MODE: Flexographic printing

MACHINES FOR PRINTING:There are three machines for the purpose of printing.

Two 2 color machines

One 3 color machine



CAPACITY OF PRINTING MACHINE:The printing machines used in Corrugated Division have the capacity of printing 250 Cornwall cartons per minute.

CONSTRUCTION OF CONTAINERS: Regulated Slotted Containers (RSC)

Glued Containers

Stitched Containers

DI – Cut Containers

MAJOR CONSUMER AREAS: Sports Product

Textile Industry

Food & Beverages

Yarn and Poly Products

Match Industry

Fruit Cartons

MAJOR CLIENTS: Pepsi Cola, Pakistan Mineral Water

Pakistan Tobacco Company

Lever Brothers

Nestle

Rupali Group

Murree Brewery

Kunjah Textile Mills



SOME OTHER DEPARTMENTS INVOLVED IN PRODUCTION

Coating Department:When paper & board is manufactured in Paper & Board Mill, its both surfaces are coarse.

For printing purposes, it must have smooth finish. For smooth finish, it is send to the

Coating Department, where it is processed to a smooth, shining, extra white upper layer

or both sides. Color coating of paper and board is also available.

Cutting & Creasing Department (CC):After printing, job comes in the Cutting & Creasing Department. As the name implies,

this department cuts or creases as the requirement of the job. For this purpose, special

dyes are used which are made for the specific job. It has very sharp cutting blades that do

the cutting. The die is attached to a machine called “CUTTING & CREASING” machine.

Lamination Department:This department has two machines, which laminates the paper on single side or double

side. This lamination process is started after printing, as the customer requirements.

Folding & Gluing Department (FG):After cutting & creasing, the job comes to Folding and Gluing Department. The machine

folds and glues the sides of the sheet to form cartons/boxes. Care is taken that the folds

are correct and the sharp and right amount of the glue is applied where required. Last

examination of quality control is conducted in this department. From this department, the

job is packed in boxes and sent to dispatch department.

Dispatch Department:This department is responsible for the dispatch of finished goods to the customer and also

takes deliveries of products to Packages Limited from the trucks or railway station. The

various functions performed by Dispatch Department are like that they receive finished

goods in this department, they record these goods, they arrange the goods according to



the delivery schedule given in the job card, they also have to arrange trucks from trucking

companies for dispatching these goods. Also they have to load and prepared dispatch

notes. They have to keep the record of dispatch figures with receipt records.

Quality Control Department:This department examines the quality of products producing by Production Department.

They make tests about the quality of printing, grammage of paper or board and compare

them with customer specifications and prepare reports about results.

Technical Department:This department is responsible for the repair and maintenance of machines and

construction of building and roads in the factory. There are 130 employees in this

department. It works in two shifts. In case of emergency third shift is carried out. It

provides the necessary spare parts and machinery to different departments. Technical

Department is responsible for making tools and spare parts. Some time it works for other

industries. It normally accepts the orders of Roll Grinders. These orders are accepted only

on cash basis.



RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT

To keep up with new demands Packages Limited has a Research, Development and

Control Department. This Department is considered as one of the most important

department. The Research, Development & Control Department works in close

collaboration with the Production Department. It helps the Production Department to

maintain a standard of the products being produced. All the new materials are tested

according to the certain specifications. It also has a lot of interaction with the Marketing

Department. Research, Development and Control Department has well equipped

laboratories and pilot machines, which are used to test various chemicals, raw materials

and machines. It enables Packages Limited to provide better quality and latest packaging

to the consumer industry enabling it to introduce new product lines and develop new

materials. The Research development and Control Department has three major areas for

his research:

Research

Development

Control

1. Research:This section is directly answerable to the Production Manager. In Research, work is done

with the new ideas, the experiment is divided into parts and on each part attention is

focused and conclusions or suggestions are given. Packages Limited, tries to get as many

information and technology which is possible and beneficial to the organization. All such

information is collected for research.

2. Development: Administrative Sciences, Quaid-e-Azam

University, Islamabad 64


Development is a continuous process in any organization. A lot of development is the

result of feasibility studies, study of new production methods and new products. Packages

Limited has a paper & Board Mill, so it uses largest number of chemicals. The

"Environment Protection Agency" has set some standards for reducing pollution. The

Research Development & Control Department developed new way of reducing pollution

and always tries to meet EPA standards.

3. Control:Packages Limited Research, Development and Control Department ensure the quality

standards off all the products produced in the factory.

Quality is synonymous with Packages Limited. Every package made by Packages

Limited guarantees the use of quality materials and processing. This is all due to the strict

Quality Control standards, observed at every stage of the production, from raw materials

to dispatch Department. The Research Development and Control Department makes

stringent requirements on quality control, which help in working consistently towards

attaining better results for customers. The incoming raw materials and end products

leaving the factory are constantly checked to make sure the items produced meet the

expected standards. To ensure constant quality and improvement this department

managed by qualified scientists.



COATES LORILLEUX (INK FACTORY)To keep up the trend of self-sufficiency, Packages limited has set up its own Ink Factory

in 1957. Initially, Packages Limited used to import all the ink used in various printing

process. But due to increase in demand and to keep quality control, Packages Limited

has set up its own Ink Factory. This factory is very economical and also supplies good

inks for printing to Packages Limited. Raw materials for inks are purchased but inks are

prepared in its ink factory. This factory has the following sections. There are three

sections of ink factory:

1) Store:This section is responsible for the arranging raw material for inks.

2) Laboratory:This section formulates different kinds of ink and develops new shapes of ink. It is

responsible for the development of new shades of ink and formulates different kinds of

ink.

3) PRODUCTION: With the help of Planning Department, this section is responsible to make ink for the

specific jobs. Ink Factory not only fulfills its own requirement but also sells printing ink

in the market. With the increase in demand and popularity of "ROSE" brand ink,

Packages Limited has made an Ink Division and they intend to develop it into a separate

independent department. In 1993, the company agreed to form a joint venture with equity

participation from “COATES LORILLEUX", world’s second largest printing ink

manufacturer to produce ink for Packages Limited and the general market. Packages

Limited own ink manufacturing facilities now transferred to the new company,

"COATES LORILLEUX PAKISTAN LIMITED" in which Packages Limited have

55% Ownership.



TETRA PAK

Tetra Pak was established in 1982 as a joint venture between Packages Limited and Tetra

Pak Development S.A. of Lausanne, Switzerland. The shares of Tetra Pak Pakistan are

distributed as follow:

49% Shares Owned By Swedish Group.

45% Shares Owned By Packages Limited.

6% Shares Owned By Syed Babar Ali.

Tetra Pak produces packaging material in premises leased from Packages Limited. The

Company operates from its office in Gulberg. That office is responsible for the

Management, Marketing, Sales, and Technical Services. The head office of Tetra Pak is

in Switzerland. A factory produces packaging material for Tetra Standard Aseptic and

Tetra Brik Aseptic. Tetra Pak has a growth rate of 15%. The Production Plant works at

Packages Limited. This building is acquired from Packages Limited on lease. There are

130 employees in the factory. Tetra Pack factory works in three shifts. Tetra Pak deals

with the packaging and sale of liquid foods such as milk, juices etc. The Tetra Packing

milk can stay fresh up to three months without any refrigeration. The factory started its

production in January 1983 with the capacity of 16 million packs per year. But now it has

a maximum production capacity of 900 million packs per year. In the year 1993 Tetra

Pak sold 750 millions packs. The material used in the production of tetra packing is:

Paper

Aluminum

Plastic Coating

Wax

The Paper, which is used in tetra packing, is manufactured at Packages Limited. The

Aluminum Foil is imported. Now in Tetra Pak daily production is 200,000 meters.



(Source: www.packages.com.pk) (Internship report by Zafar Tasneem from Punjab University, 2001-77)

GRAPHICAL ANALYSIS OF PACKAGES LIMITED

MARKET CAPITALIZATION (PAK RUPEES ‘000)

MARKET CAPITALIZATION (US $ ‘000)



SALES (PKR IN MILLION) FOR THE PERIOD 1972 - 2003

SALES (US $ ‘000) FOR THE PERIOD 1972 - 2003



PROFIT AFTER TAX & DIVIDENDS (RS IN ‘000)



INVESTMENT 1994-2004

MARKETING DEPARTMENTWe are living in an age of Marketing. It’s a famous adage; “You don't sell what you

make rather you make what you can sell”. Today in any organization, Marketing

Department is of paramount importance. Because it plays a link between the consumer

and the manufacturer. The function of the Marketing Department is to ensure that

consumers receive what they need. If marketing department works effectively and

efficiently, the whole organization is on a smooth run. The Marketing Department plays a

key role in the operations of the organization. The Marketing Department of the Packages

Limited is headed by the Marketing Manager who is responsible for all the marketing

operations in all three offices in Lahore, Karachi & Islamabad. Packages Limited has a

very effective Marketing Department, which is acting a vital role in the working of the

company. This department is responsible for the sale of industrial & consumer products.

Planning Division of the Production Department works closely with the Marketing

Department to ensure the meeting of established targets. Packages Limited has divided

into the four regions i.e. Lahore, Karachi, Multan and Islamabad. Area Marketing

Managers, who are third in the line of authority, direct under the Deputy Marketing

Manager, are the heads of these regions. Marketing Manager also looks after the

Consumer Products Division. Each region is responsible for the sales of its area. A team

assists all Area Marketing Managers, consisting of Regional Sales Managers, Assistant

Sales Manger and Sales executives. There are two Regional Sales Managers under the



Area Marketing Manager. One for industrial sales and one for the consumer products.

Then there are Regional Sales Managers and Sales Executives. The Deputy General

Manager who is also among the Board of Directors of Packages Limited is often

consulted by the Marketing Manager for important managerial decisions concerning

Marketing Department. The job of Area Marketing Manager is just like a Supervisor. He

Checks the performance of each officer. He, some times, visits the customers and asks

them whether they are satisfied with the services of the officer concerned. The Regional

Sales Manager acts as a coordinator between the Sales Executives and the Area Manager.

Each Sales Executive is allocated a certain number of customers. The respective

Executive will deal with these customers and solve their problems. In case of some

trouble, the Area Manager does involve and tries to settle things. His advice is especially

taken while developing, launching and pricing of new products or amending the prices of

existing products and so on. There are two divisions of marketing department in Packages

Limited:

The Industrial Marketing Division

The Consumer Product Division

The performance of marketing activities of the Company has increased due to this

segmentation of division. Following are the important factors that differ between these

two divisions:

Distribution channels are different.

Target market is different.

They both have their own competitors.

Marketing policies are different for each division.

1) INDUSTRIAL PRODUCTS DIVISION:The industrial marketing has emerged to be a strong tool to enhance the sales of those

companies making products that are used in the production of other goods and services.

Industrial Marketing is the need of the manufacturing firms. In this regard the Industrial



Marketing Division of the Packages Limited assumes the key importance. Industrial

Product Division is responsible for the industrial goods. This division is concerned with

the packaging needs of various industries. The industrial products, which it markets, are

numerous. The major products come in the category of packaging products. These

include:

Products available

in Offset Printing

Products available

in Flexo graphic

Printing

Products available

in Rotogravure

Printing

Corrugated

Products

Packages Limited produces good quality packaging material.

Packages Limited has 25% market share in packaging

industry; as a result they are the single largest packaging unit

of Pakistan. There are lots of small manufacturers, which are

much cheaper, but their quality is not of that par but due to

low prices they are there. Major competitors are:

Almas (Pvt.)

Limited Karachi

Pak Paper Products

Pap Board Printers

Rawalpindi

Metatax Press

Karachi

Security Paper

Industrial

Packaging Karachi

National Packages

Karachi

Friends Packages

Karachi

Uni Flex Printing

Services Karachi

Rainbow Packages

Limited Lahore

Orient Board (Pvt.)

Limited

Toufique printers

Lahore Administrative Sciences, Quaid-e-Azam

University, Islamabad 73


Market Share Of Packages Limited In Packaging Industry:

Market Share Of Packages Limited In 2000 In

Packaging Industry (Percentage)

Packages Limited 25%

Others 75%

But there is no any competitor, who has more than 10%

market share. The Packages Limited has an edge over

competitors in different factors:

Packages has own Paper & Board Mill

Modern Machines & equipment

Printing quality of products

Provides help in designing

Almost 91% of the sales of Packages Limited comprise of

Industrial Products. Packages Limited is the marketing leader

of the packaging industry of Pakistan. Packages Limited

produces the wide range of packaging material in the country.

It manufactures materials, which cover paper & board,

corrugated board, plastic packing. The major industries


Packages' Market Share

0%

20%

40%

60%

80%

Packages Limited

Others


whose packaging requirements are being fulfilled by

Packages limited are as follows:

Cigarette Industry

Tea Industry

Shoe Industry

Match Boxes

Industry

Toffee and Candy

Industry

Food Industry

Soaps & Detergents

Industry

Biscuit Industry

Pharmaceutical

Industry

Chemical Industry

Tooth Paste

Industry

Garments Industry

Marketing Philosophy:The marketing philosophy of Packages Limited in general and

Industrial products in particular, moves around the policy to

provide strength in,

Service

Quality

Dependability

In simple words, providing good services to the customers.

Also along with good quality and services. The dependability

means, the customers should have trust in Packages. By

making strength in quality, goods and services and being

trustworthy, gaining the market share is the philosophy of

Packages Limited.

Another marketing philosophy is not only to satisfy the

existing customers but also by doing this to attract new

customers.



Methods of Marketing: Face-to-face

meetings

Telemarketing

Through E-mail

Through Fax

Group meetings

Prospecting for New customer:According to my discussion with the Senior Sales Manager,

Ms. Humaira Shazia, that how they do prospecting for new

customers. She told that first we see our production lines i.e.

Carton Line

Flexible Line

Corrugated division

In which division or line we need new customers and the

existing customers are not fulfilling our requirements of that

particular line. Then we select our target market. The

selection of target market may be through market surveys.

From that target market we select the potential customers,

means the customers with which we can do business. Then

these prospected customers are sent free counter samples. The

customers use these samples and if the samples are matched

with their standards. They contact with the Industrial

Marketing Department for further negotiations. For their

standards and satisfaction, the strength in quality, services and

trustworthy are the base.

Functions of Sales Executive:



1. Customers’

identification

2. Customers’

services

3. Customers’

satisfaction

4. Development of

new jobs

5. Having an eye on

competitors’

activities

6. Market knowledge

7. Collection of

payments

8. Maintenance of

time

9. Training

development of

trainees and

internees.

Top Three Customers of Industrial Marketing Division:

1. Pakistan Tobacco company PTC

2. Lever Brothers (Pvt) Limited

3. Nestle Milkpak Limited

Type of Orders:Packages Limited receives two types of orders from the

customer:

New Orders

Repeated Order

For new orders, Sales Executive will go to the new client and

will try to sell their products to him. The Packages Limited

has a limitation, that it can not take small orders from

customers because the factory over head costs are too much

which can not be justified in small orders of less monetary



value. If the customer agrees to buy from Packages Limited,

then it is the job of the Sales Executive to coordinate with the

customer. First priority is to listen to the ideas of new

customer and if they are feasible then, work is started. If the

customer's ideas are not worth of use, then the Sales

Executives use their own expertise and design a suitable

package for the customer with the help of Art Department. If

the customers are satisfied with the quality, delivery and price

of the packaging material provided by Packages, then they

will make repeat purchases. Normally companies consult

themselves with Sales Executives by making a Phone call or

by sending a fax. When Sales Executive will get order again

from his client he will again repeat process of issuance of

ISO.

WORKING OF THE INDUSTRIAL MARKETING DEPARTMENT:The basic job of Marketing Department is to make sales and

to satisfy the customer's needs.

Allocation Of Customers:At Packages Limited every sales Executive and Sales

Managers are allocated customers and they are held

responsible for dealing with them. Every Sales Executive has

a complete record of his customers and pays regular visits

thus remaining in regular contact with them. On average a

Sales Executive has to deal with more than 10 customers.

Daily Meeting:In the Marketing Department, a meeting of all the Sales

Managers and Executives is held every morning. The Area

Marketing Manager heads this meeting. Each Sales Officer



explains the current situation of his customers and the

development in the new prospects, if any. The Sales Officers

also inform the Area Marketing Manager about what they did

the previous day. They are then guided as to what should do,

and are assigned certain duties regarding the mode of action

they are to adopt. Sales people also provide current

information about market. The sales people are also

responsible for getting the payment from the customers. In the

daily morning meeting, they have to show that how much

payment they have got from their customers and how much

amount is still outstanding with their customers. The Area

Marketing Manager sees that which sales person is lagging

behind in receiving the payments and then guides him to

speed up his efforts for getting the payments from the

customers.

In this morning meeting, the daily dispatch report is also

discussed. The Area Marketing Manager discusses with each

Sales person, the status of the order delivery of his customers.

If the orders are not executing according to the schedule given

by the planning department, then the Area Marketing

Manager, himself contacts with the planning department and

asks them to speed up the delivery process of the late orders.

Developing New Customers:Every organization aims to satisfy its present customer and at

the same time tries to increase the number of its current

customers. But with Packages Limited the task is slightly

easier, since it is the largest packaging concern in Pakistan

and off course the most reputed one. In order to find out the

potential customers, it is the duty of every Sales person to

remain well informed about the market and grab every



opportunity as and when it arises if it seems profitable. Hence,

the sales persons are required to carry out an active search for

potential customers and have to make sure that they miss no

opportunity to strike a deal that can be profitable to the

organization. As a matter of fact, it is the job of sales force to

track new opportunities for the organization. Although it is

not an easy task, but the good repute of Packages Limited

about its quality oriented production serves as a promotional

tool and helps the Sales staff. Sometimes, some prospective

customers directly contact the organization. The reason is the

highly strong market position of Packages Limited.

Procedure for getting a new order from the customer:Like any marketing department, the marketing people here

too are supposed to attract the new customers and get the

business from them. Fortunately, the Packages Limited has

very loyal customers, who have been purchasing from them

for a long time. So we can say that, more or less, the Packages

Limited has fixed number of customers. That’s why, except

Area Marketing Manager, every sales person has assigned

certain number of customers. The sales Executive has to make

all the dealings with his allotted customers. But this does not

mean that in Packages Limited, attention is not given to the

new customers. The point is that the old and loyal customers

have become the permanent customers of the company. The

other thing is that the company is operating at full capacity in

case of carton and corrugated divisions. Only in flexible line

they are below their capacity. So, mostly, they focus their

attention to attract the customers in the flexible line. If a new



customer comes, then he may be assigned to any sales

Executive.

Now there is a certain procedure through which the new order

from either a new customer or the old customer is executed

and final product is dispatched to the customer. The flow

chart of this process is given on the next page.

Process Flow:


Approval

Black & white mechanical

Art Department

Industrial Marketing dept.

ISO Issuance

Planning dept. for confirmation

Confirmation of ISO

Order Confirmation

Customer


DESCRIPTION: Process flow in Industrial Marketing Department is as follows:

First of all there is contact between the customer and

the sales department. The contact may be in two ways:

Customer contacts the marketing department

Sales executive contacts the customer.

Now if the customer has any idea, he gives

“specification” about the required product i.e. size,

material, design etc. and also tells about the

approximate order.


Sample Proof

Color Print

Approval approvalApproval approval

Customer’s order


The marketing department sends the specification to

the Art Department to convert the idea into a shape. If

the customer has no idea then it is the work of Art

Department to make a design.

The Art Department makes blank sample to the

concerned sales executive. The sales executive also

gets pre-costing report and then sends the blank

sample along with quotation to the customer. The

blank sample is sent to the customer to get approval of

four things:

Size

Material used

Structure of packaging

Construction

At the same time, the quotation is also given to the customer.

On quotation, the following information is given:

The price of the product according to the size and

quantity

Terms of payment

The expected lead time

The material to be used to manufacture the product

The printing mode

Then the customer approves the blank sample and also

agrees to the quotation.

Then the marketing department sends a color print to

the customer for approval of:



Text on the packaging

Space coverage

Color combinations

Color usage

After the approval of color print, a sample proof is

sent to the customer. This sample proof is an original

product according to the requirement of customer. Till

now the main work was done by Art Department.

After the approval of sample proof, the marketing

department issues Internal Sale Order (ISO), One copy

of ISO is sent to Planning Department for the

confirmation of:

ISO number

Product quality

Product quantity

Date of issuance

Time duration

Printing mode

Dispatch date

The planning department confirms the ISO, and bulk

Production starts. After getting the confirmation from

planning department, the marketing department sends

order confirmation to the customer and by the process

between the customer and the marketing department

completes.



Documentation flow in Industrial Products Division

From Documentto


Planning

Sales

Customer

Sales

Sales & production

Sales

Sales

Pre costing

Planning

Planning

Dispatch

Sales

Customer

Production

Job Card

ISO Confirmation

Accounts

Planning

Sales executive

Accounts

Production

Dispatch

ISO

Sales

Sales

Order confirmation

Customer

Sales

Transfer note

Credit note

Dispatch note

Debit note

Purchase Order

Customer

Quotation

Customer

Pre costing report

ISO amendment

Information


DESCRIPTION:Before the documentation flow, the customer has made the contact with the Industrial Marketing Department.

The sales manager/executive gets information from the customer and decides whether the order can be done or not.

If it can be done, then the pre-costing department prepares the pre-costing report and sends to executive.

From this pre-costing report the sales executive fills a quotation form and sends to the customers.

From this quotation, the customer gives, the purchase order, if he is agreed with the quotation.

Now if the purchase order is according to the standards and requirements of Packages, the sales executive sends the order confirmation to the customer.

Now the sales/industrial marketing department issues an Internal Sale Order (ISO). One copy is sent to the planning department.

The planning department issues the ISO confirmation slip to the Industrial Marketing Department.

Then the planning department issues Job Card. One copy is sent to the production department and the other one is sent to marketing department.

Now if there is any amendment in the purchase order, required by the customer, the I.M.Department makes an amendment form and sends to the planning department so as before production this amendment can be made.

After the completion of job, a transfer note is made by the production, which is sent to Dispatch section.



The Dispatch Section issues the dispatch note to the marketing department to confirm the completion of job.

The Account Department issues invoices, means debit and credit notes to the customer.

The receipt of payments from the customer is the duty of marketing department.

By this process the documentation flow of Industrial Marketing Department has completed.

Repeat Orders:Packages Limited, as a policy matter always prefers repeat

sales. It does not look forward very eagerly to one time order.

Most of the business is of repeated nature. Thus getting repeat

orders is also one of the important jobs of a Sales Officer. A

repeat order can be taken through a telephone call a written

letter or a visit. In repeat orders, it is not necessary that the

whole process discussed above be repeated in the same

sequence. As in repeat orders, the customer’s requirements

are already with the company, so customer only places his

order and give the order confirmation, and the marketing

department will issue the ISO and the remaining process will

be same as discussed earlier. The steps before ISO issuance

are skipped in this case. But if the customer wants some

changes in the previous order, then the whole process will

have to be repeated.



Packing material manufactured in Packaging DivisionCorrugated cartons

Cartons produced in variety of sizes, are used for transporting consumer products from manufacturers retail outlets. Mostly corrugated cartons are used for export of fresh fruit, garments, shoes and textiles.

Printing Inks Roto, Flexo, offset, water base, heat resistant, for printing of polythene, OPP. PVC, polyester, solvent base ink, lacquers, additives.

Gum Tapes A wide variety of gum tapes for sealing corrugated cartons.

Laminate Bags

For Snacks, Tea, Shampoo

Wrappers Paper wrappers/ laminate wrappers for toffee, candy, soap, ice cream, bubble gum etc.

Labels Labels For Bottles/Inks

Bags Tea bags, printed poly bags, poly coated bags

Films Shrink wrap poly film, syringe packing film

Miscellaneous Sachet for shampoo, coffee etc, cone for ice cream, stands alone pouches for PVC sleeves, and packages for every purpose.



Pricing Policy for Industrial Products:Since Packages Limited industrial products vary in nature to a

great extent, so there is no fixed price for any product. In

Packages, prices charged are quite high due to their good

quality and standard. The Marketing Department determines

prices for each of the products separately. There are some

standards regarding prices of different packaging designs, but

they vary according to the factors listed below:

Material used for

the package

Printing on the

package

Size of the package

Quantity ordered

Prospects of repeat

sales

Art work charges

Terms of

agreement

Number of color to

be used in printing

Time of completion

Price Determination:The prices are usually negotiated between the buyer and the

sales personnel. The Sales Executives get the estimates of the

costs to be incurred on the customer’s order, from the Costing

Section, a part of the Marketing department. The business

with the customer is also kept in mind, i.e. whether he is a

new customer or the permanent one of the company. The

prices for the industrial products are determined on the "Cost

Plus PROFIT" basis, i.e.

Cost + Profit = Price



In order to determine the price to be charged for an order the

company simply adds desired profit to its estimated cost of

production. In price determination the first aim is to

cover the cost. After this a reasonable amount is charged in

the term of profit. There are certain factors, which affect this

profit margin.

Distribution Policy for Products:Packages Limited, being basically industrial products

manufacturing concern, its distribution system consists of

direct selling from producer (manufacturer) to the consumer

(the company ordering for the packaging material). No

middleman is involved. Company's sales force either directly

goes to the final customer or gets order from them or the

customer himself contacts with the company. The company

believes that direct marketing is quite cheap for industrial

goods. The reason, which they quote, is that we have enough

sales force all over the country and which can cover the

industry more economically. Normally new orders are

obtained by the Sales Executives. Packages Limited does not

have any distribution or whole sellers in its distribution

network. The company advises its customers to take their

packaging material from the Factory Premises. Either the

buyer's transport comes to the premises or the company

arranges to send the products to the customer. In any case no

freight charges are borne by the Packages Limited.



CONSUMER PRODUCT DIVISION (CPD)

Since the inception of Packages Limited, it dealt only with

industrial goods. In 1981, company entered into new era and

starting dealing in consumer goods as well. Initially, it was

decided that the industrial sales division would also look after

the affairs of consumer products. In 1985, the distribution

function of the consumer products was handed over to

TETRA PAK. But in1986, Packages limited got back the

distribution facility from TETRA PAK and established a new

division with the name of consumer product division

(commonly known as CPD). Since then CPD is responsible



for the consumer products. This Division is totally separated

from Industrial Products Division and follows its own

policies. It makes its sales plan freely. Over all, CPD manages

43 different tissue paper products, which include tissue paper

rolls, facial tissues, wet tissues, tissues for particular

organization.

This department has one CPD manager, 160 workers and 10

supervisors. Tissue Paper at Packages Limited is

manufactured at Paper & Board Mill in reel form. In the

production hall, the tissue reels are cut into individual tissues

and then packed. The "ROSE PETAL" line of products

includes facial tissues, toilet rolls, kitchen rolls, paper

napkins, paper cups & plates. Apart from ROSE PETAL,

Packages Limited is producing tissues for various companies

like UTILITIES STORES etc. The other brand in tissues is

“TULIP TISSUES”, and afterward in 2001 they introduce

the FEMINEX. The raw material that is tissue paper is

imported from Scotland. What they do is cutting, packing &

selling. This division performs the activity of selling products

to the ultimate consumer. The Marketing Manager supervises

this Consumer Product Division.

Packages limited started producing consumer products with

the introduction of Rose Petal (Facial Tissues) in April 1981,

formally rose petal started production in 1986. With the

passage of time consumer products family increased. A brief

history of all the consumer products is given on next page,

1. Luxury pack of Rose Petal (Facial Tissues) in 1981.

2. Tissues of pink color were introduced in 1982.

3. Toilet rolls in 1983.



4. Economy size pack of Rose Petal (Facial tissues) was

introduced in 1984.

5. Multicolor tissues were also introduced in 1984.

6. Production of table napkins started in 1985.

7. In the end if 1985, the distribution is handed over to

Tetra Pak.

8. In February 1986, Packages Limited took the

distribution back.

9. Multi purpose rolls were introduced was introduced in

October 1986.

10. In November 1986, facial tissues were offered in

pocket pack.

11. The production plates and cups were started in 1987.

12. Perfumed tissues were launched in 1987.

13. In 1988, Feminex was launched.

14. In 1989, wet tissues were introduced.

15. In 1992, they manufactured a special kind of wet

tissue, which is used to clean the glasses of spectacle.

16. In 2001, CPD introduced Feminex

CPD is responsible from production to the distribution of all

these products. Each sales officer is a product or brand

manager and deals with the particular product assigned to

him. Before the establishment of CPD, product used to take

12-15 days before reaching to the customer who had placed

the order. After its establishment this problem was removed

and CPD people were able to establish a distribution system,

which covers the whole country. Before the introduction of

flying tissues, Packages Limited has the sole monopoly over

the tissue market in the country. But right after its

introduction, it gave a tough time to the Rose Petal family.



Although CPD people do not accept that Flying is giving

them a tough time. But after its introduction they improved

their quality by making tissues on a new machine, which is far

better than a previous one.

PHILOSOPHY: There was no local production of tissues to meet the

population requirements and at that time the tissues were

imported from abroad to fulfill the demand. Tissues were

imported only through the personal baggage and they were

only target the elite class. So the packages ltd has decided to

start the production of tissues to meet the requirement of

population and at low price to target the whole market that it

can be in the reach of medium and low-income classes.

MISSION STATEMENT OF CPD:



Rose Petal is going on the road of progress very successfully

and according to the marketing department of the company,

they want to get “maximum share by maximum sales”. They

are trying to cover every noted inefficiencies in the main

departments of its. Along with they are also very conscious

about the quality, and are doing very hard job to give best

quality. Sales people are working on classic marketing idea

“find as gap and fill it”.

GOALS:Goals of rose petal are to expand and increase the consumer

demand of tissues and to break the cultural barriers like

replace towels and handkerchief with tissues. It was thought

earlier that the tissues are for upper class but they target the

whole market including the all-social classes. In the presence

of imported and local tissues they have to create the demand

of their brand so they provide their tissues at reasonable price

and good quality.

TYPE OF BUSINESS:Rose Petal is consumer product that was the first consumer

product introduced by Packages Ltd. They produce:

o Tissues

o Paper Plates

o Paper Cups &

o Feminex.





PART-IVTRAINING PROGRAMME


(INTERNSHIP- 26-07-2005 TO 03-09-2005)


Consumer product division as we have already the

introduction of this department. I had 6 weeks internship in

this department of Packages Limited Lahore. Packages

Limited is no doubt have a great prestige in packaging

industry and after having a great success in paper and board

mill, industrial packaging they entered in the section of



consumer products. In 1982 when they first introduced the

consumer product ROSEPETAL in facial categories they had

a very great opportunity to get almost a major market share.

For having the internship I had to pass through some

sort of interviews and I called for an interview on 25-07-2005.

Consumer product division manager conducted that interview

and after that interview he accepted my resume for Internship

with CPD sales. And refer me again to HRM dept. and from

there I get my Joining letter and then from 26-07-2005 I

strated my internship there in CPD Sales. Afterwards I also

got a chance of having the internship with CPD Marketing.

ORIENTATION OF CPDOn 26-7-2005 when the I join

the first day in CPD. It was nice to see all sales and marketing

force of Consumer products under one roof even the

merchandising officer was also sitting there.

Mr Saqib introduces with the sales force and all people

welcomed me just as I am joing them as employee there. And

they all seem very cooperative and they also proved this thing

later and helped me lot in every matter.



SALES FORCE

MARKETING FORCE


CPD MANAGERMOIEEZ KAREEM

REGIONAL SALES MANAGERM.IMRAN

MERCHANDISING OFICERMR.ASIF

SEC. MANAGERMR.ARSHAD SAQIB

SALES EXCUTIVEM.ABBAS

SALES EXECUTIVEMR.UMER

SALES EXECUTIVE

MR NASIR ASLAM

GBMSYEDA HINA BABAR ALI

B.M. (ROSE PETAL)

MR HASEEB

B.M(TULIP)

MR. IMRAN MOONIS

B.M(FEMINEX)MISS ASMA SHAHZAD


Mr M. Imran introduces about the CPD and handed over

some brouchers and reading material for study which contains

the data most about the products, their variants and about their

distribution network.

CPD has three type of its own products and after with it also

has some institutional sales amd orders.

Their products are

ROSE PETAL

TULIP

FEMINEX

PART PRODUCTS



PRODUCTS AND ITS VARIENTS


ROAE PETAL

RP PERFUMED RP LUXURY

RP ORO RP SUPREME

RP MULTICOLOR RP POPUP

RP TOLIET ROLLS RP KITCH ROLLS

RP PAPER TOWEL RP WET TISSUES

RP TABLE NEPKINS RP POCKET PACK

RP PARTY PRODUCTS RP INSTITUTIONAL SALES



TULIP

TULIP PERFUMED TULIP TISSUES

TULIP MULTICOLOR TWIN TOLIET ROLL

DOUBLE HORSE TOILET ROLL

POCKET PACK

FEMINEXFEMINEX

WITHOUT WINGSWITHOUT WINGS WITH WINGSWITH WINGS

REGULAR 8SREGULAR 8S REGULAR 8SREGULAR 8S

LARGE 16SLARGE 16S LARGE 16SLARGE 16S



MAJOR COMPETITOR IN TISSUES

FLYING MOVEETA

FAY JASMINE

KLEANEX LILY


MARKET SHARE OF PACKAGES LIMITED IN TISSUE MARKET:

Consumer Products Division is responsible from the

production to the distribution of all these products. After its

establishment CPD established a distribution system, which

covers the whole country. Now Consumer Products Division

has around 211 distributors, which covers the whole country.

There is some major competitor of the company in tissue

sector. Though flying tissue has been there in the market for

the last 7-8 years, but still the Packages Limited is the market

leader and has (75 to 80)% market share. Their distribution

covers the entire country while Flying is only limited to big

cities. Packages Limited has the monopoly in case of paper

cups and plates and enjoys more than 80% of market share.


MAJOR COMPETITOR IN FEMINEX

ALWAYS BUTTERFLY

TRUSTSOME OTHER

LOCAL BRANDSBRAND


SALES STRATEGIES:In Packages Limited the

sales force is stricted to spend almost 80% of their time in

market. And 20% of their time in the offices. Their

distribution network is very strong, first of all I like to discuss

about the distributors. There are 211 distributors In all over

Pakistan, and only in Lahore they have 5 distributor and

whole 211 distributors are didvded among 5 zones and these

five zones are

After these 5 distributors Packages limited has 7 sales

supervisior to check upon thir performance they have meeting

of supervisior in department on every Friday where they

discuss about the ongoing problems and about complaints


Packages limited Lahore

Packages limited Lahore

LAHORELAHORE ISLAMABADISLAMABAD SUKHARSUKHAR KARACHIKARACHI MULTANMULTAN

ANCHORANCHOR VENUSVENUS USMANUSMAN CHOHANCHOHAN MILLINIUM

MILLINIUM


from market and customers and about distributor’s

performance.

A sample report for the market evaluation and is presented in

annuxre 1 and through this report various assessments are

made that where brand is going on. What to do now with the

brand.

During the very first week I was assigned the project about

the tissue paper. This project was on consumer behavior and

attitude of tissue paper, this project is attached in the end of

the report. Beside this I was assigned to have atleast 3 market

visits and about to fill the above evaluation form and to know

about the sales of particular area.

I visited the areas like SADAR, ARAY BAZAR GULBURG,

LIBERTY, IQBAL TOWN AND AWAN TOWN. Case

summary is given in the annuxre 2 and in the project.

No doubt it was a great exposure for me to have market visit

in a very practical sense.

Sales teem is assigned targets and they have to meet these

targets and one of the important thing is that for institutional

sales they have a separate distributor and in this institutional

sales they have orders from PIZZA HUT, KFC,



MCDONALDS, PIA, PRIME MINISTER HOUSE,

OTHER DIFFERENT COMPANIES LIKE PARCO,

PEARL CONTINENTAL etc.

MARKETING STRATEGYGoals indicate what a business unit wants to achieve, strategy

answers how to get these goals. Every business has a strategy

for achieving its goals.

The marketing strategy can be presented in a list form as

follow,

Target market

Positioning

Product line

Price

Service

Advertising

Sales promotion

Research &

development

Marketing

research

MARKETING BUDGET:Marketing budget is allocated to each brand individually and

almost each brand gets Rs. 2.0 million each year.

MARKET SEGMENTATION:Packages Ltd has defined and identified its target market for

its consumer products. Target market for facial tissues include

all the geographical areas, all the psychographics,

Demographics because Rose Petal is trying to target each and

every person in the society. They have such a wide product



line, which satisfy the needs and wants of each and every

individual. Price ranges from Rs. 5/- to Rs. 60/-. They have

the packs of different sizes in different quantities and for

different purposes. So, they always try to target each and

every individual and that means they are using the

aggregation segmentation strategy.

MARKETING RESEARCH:A.C. Neilson Aftab Associates does marketing research for

Rose Petal. Apart from research they send their employees on

recreational tours that they can bring new ideas from abroad.

ANALYSIS:(PAST, CURRENT AND FUTURE POSITION)The growth rate is 10-12% per annum, they have this

estimated target for future market share. While in past and in

present they have the same percentages.

MARKET POSITIONING STRATEGY:In terms of price and competitors:It is cheaper than imported tissues but expensive than local

brands. So, they position their brand at higher price than their

local competitors and cheaper than imported competitors.

They are making Rose Petal and Tulip Tissues where rose

petal is sold at higher prices for higher income level

consumers and tulip is sold at lower prices to cater the

demand of lower income level consumers and in this way they

increase the market share and the number of consumers.



BRANDING STRATEGYBRANDING:Every company tries to establish its brand in order to maintain

a brand loyalty. A good brand name is the goodwill of the

company. Again, the selection of the brand name is the

responsibility of the marketing people. Packages Limited has

the policy of separate family names for each of its product

line. For example, in case of facial tissues, the family brand

name is Rose Petal, Tulip etc. in the promotional campaign;

the brand name is used, which in fact covers the whole

family. The brand name of Rose Petal is used in advertising

campaign while it has many sub brands like perfumed, plane,

multicolor etc. Rose Petal brands are very succeeded in the

market has a good image. This is brand image, which helps

the company to achieve its objectives and Rose Petal is doing

the something and achieving their desired objectives.

Packages Limited itself also helps Rose Petal to create a

quality image in the mindset of their customers and make it

symbol of quality in the market.

SPECIAL ORDERS: It has already discuss that Rose Petal also get some type of

special orders of tissues from the market and fulfill the needs

of these special order customers by providing them desired

features. These special customers are like the big

organizations like PIA, PC hotel, PIZZA HUT,

MACDONALD’S, KFC and pharmaceutical companies etc.

these customers demand different type of modifications in

packaging, style, colors like Sometimes quality and also

certain other features of the different product of tissues. As

some pharmaceutical companies demand wet tissues with



certain special colognes. Some organizations demand to print

of their logo on the tissue paper, packaging like PIZZA HUT

or KFC etc. some organizations wanted to print their own

design on the packaging material as PIA placed special orders

of luxury size tissues with packaging of PIA colors green and

white although trademark and logo of Rose Petal is also

placed on the packaging. Special orders are provided in bulk

not small in numbers. They have certain limitations in which

they produce. Special orders are placed only for big

organizations or certain events. Special orders are almost the

5 to 10% of their total production and they have no problem

to manage these. Marketing people also provide their services

to different big organizations in respect of packaging and

order size and certain other facilities. If the customer wants to

make some alterations in the approved design, then he has to

pay for all those expenses, which the company has made on

the previously approved samples.

PACKAGING STRATEGY:Packaging is an essential part of any product and particularly

for consumer products. Fortunately, Packages Limited has a

separate packaging department, which is responsible for

developing package for new products or to modify the

existing package. The marketing people spell out the guiding

principles and then the Packaging department design and

prepare the package in the light of these guidelines.

Sometimes, the packaging for special orders is done

according to the requirements of the customer or client and

certain modifications are made in design or styles etc. for

example, PIA wants print of his logo on the packaging box.

Pearl continental hotel wants to print of PC on the tissues,



which are using by their customers. These are the some

examples of special orders satisfied by the CPD. they made

economical and adequate packaging of tissues for the

convenience of all type of consumers.

LABELING:They use brand label strategy as they use brand name

ROSE PETAL only, on package but they mention the

quantity of tissues in a package like 150 * 2 ply tissues

etc

PRICING STRATEGY:The basic formulae for price determination of Rose Petal

products are:

COST + PROFIT = PRICE

The first aim is to cover the cost. After this a reasonable

amount is charged in the name of profit. There are certain

factors, which affect this profit margin, which might be

internal as well external. These are:


a) Quantity of the

order.

b) Type of material.

c) Number of colors

to be used in

printing.

d) Time of

competition.

e) Future prospects.

f) Nature of the

market and

demand.

g) Economy.

h) Organizational

interests.

i) Marketing

objectives.

j) Marketing mix

strategy.

k) Consumer

purchasing power

l) Competitors’

products prices

1. Packages Limited selects the medium price-

high quality pricing strategy as Packages

never compromises on quality of the products.

Packages adopts the “Maximum Sales Growth” pricing

objective.

1. Mark-up pricing

Packages adopts “mark-up pricing” method. Sometimes

Packages sells its products below cost also. For example they

sell wet tissue below cost to create its market, because

majority of people is not familiar and accustomed to use the

wet tissues, which has limited demand in the market. The

management of Consumer Product Division (CPD) also

makes their price decisions on the basis of the competitors on

going rate prices. So, they have to take keen interest on the

pricing policies of the competitors. Although quality play a

leading role in their products, but prices have also its

importance in the development of the product image in the

market.

PRICING POLICIES:The company has the policy to charge ex-factory prices. They

are not concerned with the freight charges. All such costs are

borne by the buyer.

The basic objective behind the price determination of

consumer products is to maximize the market share. The

company actually wants a higher turnover. The marketing

people set prices by considering the following factors.

COST OF PRODUCTION:Every organization strives to sell its goods on Maximum

profit. But the first objective is that to cover the cost of

production, or to sell at the break even. And profit margin

is set in order to maximize the market share.

CONSUMER PURCHASING FACTOR:This is also very significant while determining the final

price. Marketing manager has to pay full attention

on the purchasing power of the target customers. Again

the objective or the philosophy behind the whole pricing

concept is to maximize the market share.

PRICING POLICIES OF THE COMPETITORS

The prices charged by the competitor also play very

important particular in case of consumer products. Since

price is the basic factor. Marketing department always

keep an eye to track any movement by the competitors. If

the company starts charged higher price as compared with

the competitors, then definitely it is going to loose its

market share. Which is the major objective of the

company.

GOVERNMENT TAXES:Another factor, which affects the pricing policy, is the

taxes imposed by the Government. Rose Petal has the

policy to increase as with the increase in the taxes.

AREA PRICING:Rose Petal has the policy to charge a homogeneous

price for all of its consumer’s products through out

the country. In this regard, enough margins are kept

to cover the freight, and other district taxes

ROFIT/UNIT:

They are earning normal profit/unit @ 10-15%.

PRICES OF ROSE PETAL TISSUES:Products Factory price for

Reg. distributor

Factory price for

unReg. Dist.

Customer price

per unit

Standard

packing

Perfumed tissue 1431.70 1469.05 47 36 car/case

Classic per. 1128.95 1158.4 39 36 car/case

Tulip Viva 0688.30 0706.25 30 36 car/case

Fresh Wipes 2203.20 2260.70 20 144 packs/c

Multicolor 1377.00 1412.90 50 36 car/case

Luxury size 0963.75 0988.90 35 36 car/case

Supreme size 0799.20 0820.65 29 36 car/case

Tulip Tissue 0550.80 0505.15 22 36 car/case

Handy pack 0367.20 0367.80 10 48 pack/case

Paper towel 1032.60 1059.55 45 30 roll/case

Party pack 1308.00 1342.10 57 30 pack/case

Toilet roll 0918.00 0941.95 16 100 roll/case

PROMOTION/ADVERTISING STRATEGY:Promotion is the last and very important component of

company’s marketing mix program, because other

components of marketing mix program of the company like

product and price are performed mainly within the

organization. It is the promotion, part of the company’s

marketing mix, in which the company communicates directly

with the potential buyers. Promotion is that element in an

organization’s marketing mix that serves to inform, persuade

and remind the target market of the organization.

Basically promotion is an attempt to influence the target

market. The promotion is very vast field. There are many

methods in use for promotion of products. These various

methods together are known as “promotion mix”.Packages

almost uses all the medias for advertising and promotion of

their consumer products. The main advertising and

promotional medias used by packages are as under:

1. Television PTV, STN, PTV2, and

ZEE TV

2. Radio Radio Pakistan and FM

100

3. Urdu Newspapers Daily Jang, Pakistan,

Nawa-e-Waqat and Din

4. English Newspapers Daily Dawn, The News,

The Nation & Business

recorder

5. English Magazines SHE, HERALD, and

MAG

6. Urdu Magazines Akber-e-Jhan, Family,

Urdu Digest

7. Sponsorship Sports, T.V.dramas.

trade shows, and

Exhibitions.

In sponsorship they mostly sponsor the television programs,

many exhibitions like annual industrial exhibitions held in the

Fort Stadium, Lahore. Packages also uses moving

sign-boards, posters, stickers, mobiles, note book stickers for

students and brochures for advertisement of its products.

PROMOTIONAL POLICIES:It is the job of marketing department to promote the business

of the organization. In consumer product division, marketing

people have different promotion plans for each product.

Without promotion, no consumer product can be successful.

Promotional activities are an integral for marketing consumer

products:

1. Increase the sales.

2. Outplace the competitor.

3. Increase the market share.

4. Higher turnover.

5. Informing the consumers.

6. Guiding of goodwill.

PROMOTIONAL BUDGET:The management fixes the promotional budget. The basis

premise is that whether the organization can afford the budget

or not. A part from this fact, there are a lot of other factors,

which the marketing people have to consider. These are:

Cost of media.

The number of products already in the

market.

The number of new products the company

is going to launch.

ALLOCATION OF THE PROMOTIONAL BUDGET:One of the hardest marketing decisions facing a company is

how much to spend on promotion. Rose Petal division

develops the promotional budget by defining specific

objectives and estimating the costs of performing these tasks.

There are number of tools that are used to promote a business.

These include:

1. Advertising.

2. Sales promotion.

ADVERTISING:Packages Limited arranges advertisement on different

electronic media. Advertising accounts for about 80% of

the total promotional budget. In-fact, advertising is the

most popular and effective media to persuade the

customers.

Share Of Different Media for Advertisement by

CPD

Television, VCR 65%

Newspapers 20%

Pop Media 10%

Public Relation 1%

Others 4%

There are many forms of advertising contribute uniquely to

the overall promotional mix. Advertising can reach masses of

geographically dispersed buyers at a low cost per exposure. It

enables the seller to repeat a message many times, and it lets

the buyer receive and compare the messages of various

competitors.

This is because of the fact that all the products are of the

convenience type and hence, require frequent advertisement.

Consumer product division of the packages Limited normally

follows the “PULL STRATEGY”.

The advertising campaign of the Rose Petal, Tulip, Feminex

division includes the following:

a. Broad cast media.

b. Print Media.

c. Pop Media.

d. Out Door Media.

Explanations of these advertising campaigns is given as

below:

BROAD CAST MEDIA:The largest share of the broadcast media is allocated to this

media because it is the most interesting media with far

reaching affects. Although, it is the most expensive media, but

the nature of the products requires its use. It includes:

Television

FM Radio.

VCR.

Consumer product division extensively uses FM Radio and

Television while VCR is not used very much. Normally the

ad of the facial tissues of Rose Petal consists of 15 seconds

that is run both on television and the FM Radio. The

advertising budget for Television and the FM Radio is about

65% of the total budget.

When there is need to advertise on the T.V and on some other

cable networks then the request is sent to concerned agency,

in reply the marketing department receives the estimates from

that agency, this estimate includes the available slots and the

frequency for the brand in between different programmes and

its cost. After reviewing and approval from the concerned

person (B.M) they issue the release orders and send it to the

agency and then their agency is responsible to run it on the

T.V and other cable networks.

The form of estimates and release order is given in the

annexure3 and annexure 4.

PRINT MEDIA: Print media is also an important part of the promotional

technique. It includes:

Newspapers.

Magazines.

Direct mail etc.

Consumer product division normally uses newspapers and the

magazines for the advertisement of the Rose Petal products

and all of these print media used about 20% of the total

budget.

POP MEDIA:Pop media includes posters, stickers, and other point of

purchase material. It takes about 105 of the total budget.

OUTDOOR MEDIA:Marketing people normally don’t prefer its use because they

think that this is not very effective. It has a nominal share in

the budget. It includes billboards, roadside signs etc.

ADVERTISING AGENCY:Packages Limited is doing intensive advertising for Rose

Petal products. For this they are engaged with the well-known

advertising agency LAWE& RAUF AND second one is

PRETIGE.They changed advertising agencies according to

their requirements and demands. If agency is not fulfilling

their requirements then they switched to another agency.

From their CPD sales they spend almost 10 % on the

advertising. For the compensation of advertising agency they

give them a fixed fee.

2- SALES PROMOTION:

Its share in promotional budget is about 10%. It includes:

Sampling.

Gifts Schemes.

Cent of scheme.

Gifts

Sales promotion is defined as short-term incentives to

encourage purchase or sale of Rose Petal products. In Rose

Petal Consumer promotion in sales promotion is designed to

stimulate consumer purchasing, including gifts, price off, and

similr in the other two barnds like Tulip and Feminex. Trade

promotion in sale promotion is design to gain reseller support

and to improve reseller selling efforts, including discounts,

allowances, free goods, cooperative advertising, push money

and trade shows.Sales force promotion in sales promotion is

designed to motivate the sales force and make sales force

selling efforts more effective, including bonuses, contests,

gifts and sales rallies.

COMPETITIVE STRATEGY:Their competition strategies are based on the competitor’s

strategy (flying tissues). They do not follow the price war

competitive strategy. They follow the standard of product and

quality in competition.

PERSONAL SELLING: They don’t do personal selling. But they have spot selling

FUTURE FORECAST OF MARKET:Future forecast according to the management of the Consumer

Product Division is 10-12% per annum.

QUALITY CONCEPT IN MARKETING:Quality is one of the marketer’s major positioning tools. Rose

Petal is the ISO 9001 certified and has the standard of their

products in the tissue market. They also follow up the rules of

total quality management to provide the best quality product

to its end users. They follow different quality improvement

program to increase their profitability as well the image in the

market. First priority of the CPD is to improve the different

features and characteristics of the core product. Rose Petal is

satisfying most of its customers by providing the quality

product. Quality in the Rose Petal means the softness,

strength ness and absorbs ness of the tissue. In case of special

orders a margin of 10% of variation is considered as normal

variation and the customer has to accept the order as such. In

Rose Petal, marketing people also deliver the marketing

quality as well as production quality to their customers, which

is key to success in the market.

SWOT ANALYSISSTRENGTHS:

People are more familiar with Packages than its

competitors only due to the reason that they are

pioneer in the packaging industry.

Specialized management personnel and highly

motivated staff.

Leader in paper technology in Pakistan.

Large R &D budget, almost 34 % of the investment is

made in this section.

Effective distribution management with proper check

and balance through proper distribution networks and

its division of areas.

Major market share in tissue paper in which rose petal

covers almost 75 % of tissue paper industry.

Manufactures own tissue papers, its competitors use

imported one.

A long listed product line and length as compared to

the competitors i.e rose petal has 7 varients only in

facial tissues.

Monopoly in wet tissue.

WEAKNESSES: Sell their products on cash basis.

High grammage tissue, not much softer.

Analysis of sales on primary sales report not on

secondary.

Highly paid sales staff, sometimes reluctant to attend

small shops.

High prices as compared with competitors.

Mostly, the orders are not completed on time, due to

the communication gap between the marketing people

and the production people.

When the sales executives go out on customer’s visits,

there is no one in the department, who in his absence,

may deal with his allotted customers.

The promotion process is very slow in the company.

Particularly consumers are not satisfy with their price

of RUMMAL (Rose petal)

OPPORTUNITIES: Demand of tissues and other disposable products are

increasing, as its awareness is increasing.

Can target young generation with different varients.

THREATS: Different kinds of taxes levied by the government.

Different kinds of smuggled tissues.

High costs.

Tough competition is expected in future, Hier is going

to establish the packagingh firm.

(EXTERNAL ANALYSIS)Opportunities

Being one of the best packaging manufacturers in the

Asia, Packages Limited has great opportunity in the

export market in the Middle East and other third world

countries.

As yet, there is no rival company within the country at

the level of Packages Limited, the market share and

capacity of production can be enhanced.

Quality awareness & consciousness among the

customers are increasing.

Threats Advertise taxation policies of government are causing

reduction in profitability.

The use of offset packaging is decreasing day by day,

due to greater use of Polyethylene and disposable

packaging.

CONCLUSION

Packages is one of the latest and

pioneer packaging units in Pakistan.

It also assists the other countries

in paper technology and management.

It is leader in pulp & paper and

packaging industry in Pakistan.

It pays a huge amount annually

in the form of taxes to the government of Pakistan.

“Rose Petal” tissues are very

popular among customers.

The market share of Rose Petal

is 75% approx. and 20%-25% in packaging sector.

People buy tissues for price

ranges Rs. 10 to Rs.50 but consumer demands more soft

tissues at this price.

Company’s distribution

channels are very effective.

The packing of Rose Petal

tissues is much attractive as compared with its competitors.

It has more variety in tissue line

as compared with the competitors.

It has monopoly in wet tissues.

The management of Packages

Limited is very loyal to its “quality policy”.

Company’s advertisement

budget for Rose Petal, Tulip and Feminex is very high as

compared to its competitors (Flying & Fay).

Packages Limited is in pulp &

paper and packaging material manufacturing business since

1957, so its management has very vast experience in these

fields.

Packages Limited mostly deals

in industrial goods for which they never advertise.

In consumer products the

management of Packages believes in “pull strategy” i.e.

creating pull through advertising.

Recently consumer promotion

has been introduced for certain consumer products.

The prices of the products of

Packages are higher than the competitors due to the fine

quality, it provides.

It can also be concluded that

Packages should reduce the prices of its tissues.

Since the people are getting

easy going day by day so the future of Packages Limited is

very bright as it makes disposable products.

RECOMMENDATIONS

During internship in Packages Limited, I conclude that it is an

excellent organization. Both the packaging and consumer

products are the market leaders. Apart from its excellent

operations, it does not tend to be stationary at one point.

Although it is quite difficult to suggest some thing to such an

established organization yet in the following lines, I make a

humble effort to give some recommendations to this well

performing organization.

The most important issue is the high prices of the

products of Packages Limited; due to this it loses a

number of customers. So the management of Packages

must take some measures to cope with this problem so

as to attract new customers.

The Paper & Board Industry is presenting many new

opportunities in the future, in domestic and foreign

markets. There is a need to exploit these opportunities

before the competitors use them up. The production

capacity of this industry should increase.

They should realize its constant market share, which is

not exceeding from 25-30%, in the packaging

division. So measures should be taken in order to

expand the target market and increase market share.

The Industrial Marketing Department should tap the

pharmaceutical sector, because there are many more

potential customers for Packages Limited in the

above-mentioned sector.

They can enhance the image of their company by

entering into the field of public relations. If they let

the public know their plans and operations, say, in

electronic media, it is hopeful that the people will

consider the organization with a sense of still greater

esteem and this can add to the growth of their

consumer products.

In Packages Limited, some departments are

decentralized but still there is a need of more

decentralization in some departments.

Although the management has given many attractive

incentives to its employees, but there is a need of

workers' colony in Packages Limited.

The Packages Limited follows an unsound advertising

strategy. The advertising budget should be increased,

and it would be better if an advertising department is

opened, instead of paying big amounts to the

advertising agency.

Consumer Product Department is producing

disposable cups and plates, but they are not promoting

these products. They should educate consumers about

these products with an effective promotional program.

As the training procedures are also very important to

have qualified people on their jobs, special emphasis

should be laid on to the management development part

of the training programs.

Packages Limited does not offer the credit base sales

which effect the sales and as well as losing the more

other opportunities.

Annexure-1

RESEARCH REPORTRESEARCH REPORTON ON

TISSUE USAGE PATTERNTISSUE USAGE PATTERN AND BEHAVIORAND BEHAVIOR

Consumer ProductsConsumer Products DivisionDivision

PRESENTED TO:

Mr. Muhammad Imran

Regional Sales Manager Lahore

PRESENTED BY:

Sajjad Ahmad Rauf

INTERNSHIP PROGRAMMEINTERNSHIP PROGRAMME JULY-AUG 2005JULY-AUG 2005

Annexure-2

Annexure-3

CASE SUMMARY

Segment GenderConsumer

TypeBrand User

Tisseu Category

Duration of Usage

Purchase Frequency

Purchase Period

InspirationSatisfaction with Quality

Satisfaction with Price

Satisfaction with

Availability

Coinsisent User

1 A Class MaleBusiness

ManRose Petal

Facial Tissues

More than One Year

4Mid of Month

Market Image

Yes Yes Yes Yes

2 A Class Female House WifeRose petal

& Other Brand

Toilet RollsMore than One Year

3Start of Month

Packing & Convenienc

eYes Yes Yes Yes

3 A Class Female House Wife Rose PetalFacial and

ToiletMore than One Year

1Start of Month


eYes Yes Yes

Changes less

Freqently


Man

Rose petal & Other Brand

Facial and Toilet

More than One Year

4Mid of Month

Market Image

Yes No YesDepends on Availability



2Mid of Month


eYes No Yes

Changes less

Freqently

6 A Class Male Student Rose PetalFacial and


1Start of Month


eYes Yes Yes

Depends on Availability


Man


Facial Tissues

More than One Year

5Start of Month

Market Image

Yes Yes YesChanges

More Frequently



1Start of Month


eYes Yes Yes Yes

9 A Class Male Student JasmineFacial

TissuesMore than One Year

2Start of Month


eYes Yes Yes Yes

10 A Class Female Job Holder Rose PetalFacial and


5Start of Month


eYes Yes Yes Yes


ManRose Petal

Facial and Toilet

More than One Year

2At end of

MonthMarket Image

Yes Yes YesDepends on Availability

12 A Class Female House Wife Rose PetalFacial


1Start of Month

Market Image

Yes Yes YesChanges

More Frequently


ManRose Petal

Facial and Toilet

More than One Year

2Start of Month


eYes Yes Yes

Changes less

Freqently

14 A Class Male Job Holder FlyingFacial and


1At end of

MonthAdvertising Yes Yes Yes


15 A Class Female House Wife Rose Petal Toilet RollsMore than One Year

15Mid of Month


e


16 A Class Male Student Rose PetalFacial and


2Mid of Month


e

Yes No Yes Changes less

Freqently17 A Class Female House Wife Rose petal

& Other Brand

Facial and Toilet

More than One Year

4Start of Month

Market Image

Yes Yes Yes Yes


Man

JasmineFacial


5Start of Month


e

Yes Yes Yes Yes

19 A Class Female House Wife Rose PetalFacial


3Start of Month

Market Image

Yes Yes Yes Yes

20 A Class Female Student Rose PetalFacial


1Start of Month

Market Image

No No YesDepends on Availability

21 A Class Male Job Holder Rose PetalFacial and


2Start of Month

Market Image

Yes No Yes Yes


Man

Rose PetalFacial


1Start of Month


e

Yes No Yes Yes



4Start of Month


e

Yes Yes Yes Changes More

Frequently

24 A Class Female House Wife FlyingFacial

TissuesFor 6 Month 3

Start of Month

Market Image

Yes Yes No Yes

25 A Class Female House Wife Any otherFacial


1Start of Month

Market Image

Yes No Yes Changes More

Frequently26 A Class Male Student Rose petal

& Other Brand

Facial Tissues

For 6 Month 1Start of Month

Market Image

Yes Yes Yes Yes

27 A Class Female House Wife TulipFacial


1Mid of Month


e


Frequently28 A Class Male Job Holder Rose petal

& Other Brand

Facial and Toilet

More than One Year

1Mid of Month


e


Frequently


ToiletNew User 2

Start of Month


eYes Yes Yes

Changes less

Freqently



1Start of Month

Market Image

Yes Yes Yes Yes

31 B Class Female House Wife TulipFacial


1Mid of Month

Market Image

Yes Yes YesChanges

less Freqently

32 B Class Female House Wife Rose PetalFacial and


3Start of Month

Advertising 3 Yes Yes Yes

33 B Class FemaleBusiness

ManAny other

Facial and Toilet

More than One Year

4Start of Month

Advertising Yes Yes YesChanges

More Frequently

34 B Class Female House WifeRose petal

& Other Brand

Facial and Toilet

More than One Year

2Same

throughout Month


eYes Yes Yes Yes

35 B Class Male House Wife Rose PetalFacial and


1Start of Month

Advertising Yes Yes Yes Yes



4Start of Month


eYes Yes Yes


37 B Class Female Student TulipFacial and


1Mid of Month

Market Image

Yes Yes Yes Yes

38 B Class Female Student Rose Petal Any OtherMore than One Year

1Start of Month

Market Image

Yes Yes YesChanges

More Frequently

39 B Class Female Job Holder Rose PetalFacial


2Start of Month


eYes Yes Yes Yes

40 B Class Female House Wife Rose PetalFacial


1Start of Month

Market Image

Yes Yes Yes Yes



3Start of Month


eYes Yes Yes Yes

42 B Class MaleBusiness

ManRose Petal

Facial Tissues

More than One Year

5Mid of Month


eYes No Yes

Changes More

Frequently

43 B Class Female Student Any otherFacial

TissuesNew User 3

Start of Month

Market Image


44 B Class Female House Wife Rose petal Facial More than 2 Start of Packing & Yes Yes Yes Changes

& Other Brand

Tissues One Year MonthConvenienc

eMore

Frequently

45 B Class Female StudentRose petal

& Other Brand

Any OtherMore than One Year

1Start of Month


eYes Yes Yes Yes

46 B Class Female House Wife Rose Petal Toilet RollsMore than One Year

4Start of Month


eYes Yes Yes

Changes More

Frequently



3Same

throughout Month


eYes Yes Yes

Changes More

Frequently

48 B Class Female Job Holder Rose PetalFacial and


1Start of Month


eYes No Yes

Changes less

Freqently



3Same

throughout Month


eYes Yes Yes

Changes less

Freqently

50 B Class Female Student TulipFacial and


1Mid of Month

Market Image

Yes Yes Yes Yes

51 B Class Female House Wife FlyingFacial


1Start of Month


eYes Yes Yes

Changes less

Freqently

52 B Class Female Student Rose PetalFacial


6Start of Month


eYes Yes Yes

Changes More

Frequently



3Same

throughout Month


eYes Yes Yes

Changes less

Freqently



2Mid of Month


eYes Yes Yes Yes



1Start of Month


eYes Yes Yes

Changes less

Freqently



1Start of Month


eYes Yes Yes

Changes less

Freqently



1Start of Month


eYes Yes Yes Yes

58 B Class Female Student Rose PetalFacial and


2Start of Month


eYes Yes Yes

Changes less

Freqently



4At end of

Month


eYes Yes Yes Yes



3Same

throughout Month


eYes Yes Yes

Changes less

Freqently



3Same

throughout Month


eYes Yes Yes

Changes less

Freqently

62 B Class Female Student Any otherFacial

TissuesNew User 3

Start of Month

Market Image




1Start of Month


eYes Yes Yes

Changes less

Freqently



1Start of Month


eYes Yes Yes Yes



1Start of Month


eYes Yes Yes

Changes less

Freqently

66 C Class Male Job Holder Rose PetalFacial


2Start of Month

Market Image

Yes Yes YesChanges

less Freqently

67 C Class MaleBusiness

ManTulip

Facial Tissues

More than One Year

1Start of Month

Market Image


68 C Class Male Student Rose PetalFacial


1Mid of Month

Advertising Yes Yes Yes Yes

69 C Class Male Student Rose PetalFacial and


1Start of Month


eYes Yes Yes

Changes More

Frequently



2Mid of Month

Market Image

Yes Yes Yes Yes



1Start of Month


eYes Yes Yes Yes

72 C Class Male Job Holder Rose Petal Facial Tissues

More than One Year

1 Start of Month


Yes Yes Yes Yes

e



1Start of Month


eYes Yes Yes Yes



1Start of Month


eYes Yes Yes Yes



1Start of Month


eYes Yes Yes Yes

76 C Class Male Job Holder Rose PetalFacial and


2Start of Month


eYes Yes Yes




2Start of Month


eYes Yes Yes




1Start of Month


eYes Yes Yes




1Start of Month


eYes Yes Yes


80 C Class Male Student TulipFacial and


3Start of Month


eYes Yes Yes


81 C Class Male Student TulipFacial and


2Start of Month


less Freqently


Man



2Mid of Month


less Freqently


Man



1Mid of Month


More Frequently


ManJasmine

Facial Tissues

More than One Year

1At end of

MonthMarket Image

Yes No YesChanges

More Frequently


ManTulip

Facial Tissues

More than One Year

1At end of

MonthMarket Image

Yes No YesChanges

More Frequently

86 C Class FemaleBusiness

Man


Facial Tissues

More than One Year

3At end of

MonthMarket Image

Yes No YesChanges

less Freqently


ManRose Petal

Facial Tissues

More than One Year

1Start of Month

Advertising Yes No YesChanges

less Freqently


ManRose Petal

Facial Tissues

More than One Year

1Start of Month

Advertising Yes No YesChanges

less Freqently


ManRose Petal

Facial and Toilet

More than One Year

1Start of Month

Advertising Yes No YesDepends on Availability


ManTulip

Facial and Toilet

More than One Year

1Start of Month

Advertising Yes No YesDepends on Availability

Total 90 90 90 90 90 90 90 90 90 90 90 90 90

Annexure-4ESTIMATES SEND BY THE ADVERTISING AGENCYCOMPANY (AGENCY NAME) ADDRESS:

CHANNEL ________________________

S/R DATE DAY PROGRAMME SPOTS COST

TOTAL COST: ___________________

SIGNATURE:

Annexure-5

Company name Date:____________Address

Reference to estimates:

Channel:______________________________________________

DayPro Mon Tue Wed Thu Fri Sat Sun total

Total

Total amount paid to agency for the above spots is Rs._________

Signature:

Annexure -6 (References)

www.packages.com.pk

Tulip business plan 2005 (Provided by Mr.imran moonis) (Brand manager tulip)

Ph#0321-4420753Brand analysis (Feminex) (Provided by Brand Manager Feminex) Miss Asma Shahzad 042-5811541ext 349Annual sales report

(Provided by Mr. M. Imran)Regional Sales Manager Lahore

Ph# 5811541 ext 355

Documents

Internship Packages)