Listen to the Sound of the Day Yesterday, Today

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Listen to the Sound of the DayYesterday, Today
Tomorrow

• By
• Naveed Ahmed Khawaja
• Date 19th November 2009

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Our Products
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The History of EBM

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

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The Industry Issues

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

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Key Challenges

• Leadership Challenge
• Shake revive the industry
• Bring Change through Competition
• Achieve Growth in branded biscuit industry
• Strategy Branding
• Create need niche
• Biscuits considered as a Luxury food item not a
  necessity
• Introduce Branding Positioning
• Bring Product Packaging innovation
• Grow Vol. share to survive
• Invest in Technology RD

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The Strategy of 70s

• Taking Competitive Edge
• Biscuits marketed as food in between meals
• Biscuits marketed under PF EB umbrellas
• Through strong modern Branding
• The Pied Piper concept launched
• The Sound of Yesterday, Today Tomorrow
• The Legend Leads
• Gained Instant Popularity, Awareness, Relevance,
  Trial and Loyalty
• A larger than life icon
• But the Total Market did not grow!
• Competition did not compete

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The Strategy of 70s contd...

• Grow the total Market
• Created Competition from within
• Launched another brand range Happy
• Created competition in branded biscuit ind.
• Overall Market grew by 30
• Market growth attracted a mushrooming of
  entrants
• Union, Montgomery, AB Foods, etc

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The Strategy of 80s

• The mid-Years - Era of Market Growth
• Grew market leadership through launch of new
  innovative products
• Introduced Premium products i.e. Farm House
  Cookies (87-88)
• Introduced the EB Royal Range (88-89)
• Entry of Danone through CBL i.e. LU brand
• Competitive environment fuelled further market
  growth

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The Strategy of 90s

• Intense competition market growth
• EBM market share slipped
• Standing Still. Was not an option
• A change was imminent
• With increasing input costs, increasing
  competition market share slip strategic
  business decisions had to be taken
• EBM adopted a high volume, low margin strategy

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The Strategy of 90s contd

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

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The Strategy of 2000 Onwards

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

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The Strategy of 2000 Onwards contd

• Market Penetration Strategies
• Product Launches Re-launches
• EBMs true Marketing Success Stories
• Sooper Re-launch - leading the turnaround of
  business growth of overall biscuit market
  Sooper 1.avi Sooper 2.mpg
• Capitalizing on Market Leadership Position
• RIO Double Treat product innovation (2 creams)
• Marvell Product Innovation in Shape
• Party Re-launch
• Seeking new consumers through new consumption
  occasions
• Sandwiches Re-launch Over 40 years old brand
• Tapping up-country markets
• Peanut Pik Pista Re-launch

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The Strategy of 2000 Onwards contd

• Focus on increasing Distribution Penetration into
  Rural Markets
• Rural Development Programs
• Opening of New Towns Direct Servicing
• Focus on Demand Generation
• Out-spending competition on media
• Trial generation repeat purchase
• Consumer Promotions
• Brand Activations
• Heavy investment behind CSR initiatives to
  project positive brand company image
• Demand of Brands gt Ability to Supply
• 5 Focus Brand Strategy

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How did we do that ?

• Power of Vision

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Vision

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

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Corporate Objective

• Transform EBM into a living institution with a
  body, mind soul which is recognized as a good
  corporate citizen due to its core values as Open
  minded, transparent, responsibly delivering
  consumer satisfaction with a sprit to excel.

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EBMs Strategic Pillars
Number 1
Mind
Leadership
Vitality
Humanity


Soul
Growth Strategy Branding Creativity Competitive
Edge
Hygiene/ Pakeezgi Productivity Ethical
Transparent Cons. Trust Confidence
Responsibility Socially Responsible Environmentall
y Friendly Food Safety Standards
Dynamic Organization Good Corporate
Citizen People Dev. Openess Team working
Spirit to Excel
Body
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Core Values

• Follows the Highest Ethical Values
  Professionalism
• Believes Product Quality is next to religion
• Pursues International Safe Food Standards
  Hygiene to promote National Health since its very
  inception
• Environmentally sensitive responsible
• Attains Technological Advancement in both human
  resources, plant machinery

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Our Philosophy

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

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Sense of ResponsibilityTowards Consumers

• Ensuring Quality Affordability
• No compromise on product quality
• Focus on improving internal efficiencies
  economies of scale
• Offering the best Quality Taste
• Adherence to International Quality Standards
• First Biscuit company in Pakistan to attain HACCP
  ISO 9001-2000 Certifications
• State of the art manufacturing processes with
  investment of over Rs 2 billion

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Sense of ResponsibilityTowards the Nation

• Company contributes over Rs 850 million to the
  National Exchequer in the form of Taxes Duties
• Clubbed in the elite group of highest tax-payers
• Provides Employment (direct indirect) to over
  2000 ppl approx
• Company ethos of a Caring Corporate Citizen
• As a Responsibility
• As an Obligation of Good Governance

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Sense of ResponsibilityTowards the Nation
We make the world around us better.
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Sense of ResponsibilityTowards the Nation

• Sensitivity to the Environment
• Proactive Environmental practices
• Water Treatment Plant
• Separate Area for Solid Waste Management
• ISO 14001 Certification
• Only Biscuit company to have received the
  Environment Excellence Award for 5 consecutive
  years

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Caring Corporate Citizen

• Primary focus of Corporate Social Responsibility
  (CSR) initiatives on 3 key areas
• Health
• Education
• Sports

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Sense of ResponsibilityTowards the Nation
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Where are We?

• LAST SEVEN YEAR HIGHLIGHTS
• 01-02 TO 08-09

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Sales Volume Master Cartons
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Recognized as
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The Mantra

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

The Harder You WorkThe Luckier You Get!!
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The Future

• God has been kind to us
• Our Consumers have been kind to us
• We have lived up to their trust and confidence in
  our company and brands through our Marketing
  initiatives
• Aggressive marketing plans for the future
• We have glorious pastan enviable present and
  God-willing, a prosperous future ahead of us
  where the Sound of Peek Freans will continue to
  keep resounding in your hearts

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• THANK YOU