Industrial Marketing

Packages Limited

Submitted To:
Ms. Zainab Qaiser
Submitted by:
Fiza Masood
Mahnoor Sadaqat
Mishal Khalid
Shifa Ahmed
Syed Ali Waris
Um e Aimen
 Executive summary
Packages limited is the Pakistan’s leading packaging solution provider. It was formed in 1957
between the Ali Group of Pakistan and a Swedish company known as Akerlund and Rausing of
Sweden. It provides multidimensional and multi product packaging solutions to its clients that
are involved in manufacturing consumer products across the industries. Its main offerings are
carton packaging and flexible packaging. Thus, it is operating in paper and board industry of
Pakistan and targetin.
Packages limited has different functional areas like inventory room, production and operations
and various departments like human resource, auditing, marketing, finance, procurement that are
working efficiently and precisely to provide the best results.
Packages Ltd has numerous firms with which it competes in terms of packaging such as Roshan
Packages Limited, Pak Packages, Universal Packaging Company, Saima Packaging.
Packages maintain strong long-term profitable relationship with its suppliers, it purchases raw
materials from some of its suppliers on credit basis and gets discount on bulk purchases. Hence
the pricing strategy used between suppliers and packages limited is value based where
negotiation takes place between suppliers and packages Hankel, DIC, Tri Pak are the principal
suppliers for packages that are providing inks, adhesives, polyester films etc.
Moreover, procurement department requirement department, and planning department play
significant role in forecasting the demand and supply of the product and then maintain the in The
product line of Packages Ltd include folding high quality cartons, flexible packaging and
technical expertise in terms of in house facilities. Folding cartons is in the maturity stage as it has
reached its high sales point. Flexible packaging is in the growth due to innovations in flexible
packaging
As packages limited is a part of oligopolistic market where there are many competitors it is
charging prices to its customers less than the competitors. Moreover, their products are at the
growth stage, so they are using competitive pricing strategy.Packages limited gives importance
to its customers it creates a repeated and ongoing relationships with its business customer such as
nestle, and it also solve the problems related to the product faced by its customers and provide
creative innovative solutions. Thus, it is playing a role of motivator, persuader, problem solver.
In addition to this their sales force is involved in selling their product.
Packages limited has an effective network of supply chain including different processes like
procurement, operations, sales and marketing, customer service, that plays important role in
creating value for the customers.
Despite the tough economic conditions packages still manages to keep itself on track and run
operations smoothly by carefully formulation its strategies with regard to the product, price and
marketing communication
Segmentation, Targeting, Positioning
 Product/Service
Packages Ltd, one of the giants for packaging in Pakistan also having first-mover advantage for
the services it offers. It has a plethora of customers who use the company’s services for folding
carton packaging, flexible packaging, technical expertise, gold foil stamping or making use of
Packages’ in-house printing facility. Companies from many industries act as customers for
Packages such as food and beverage industry, pharmaceutical industry, tobacco industry,
personal care industry and textile industry.

Companies Industry

Nestle Food
Colgate-Palmolive Personal Care
Pakistan Tobacco Company Tobacco
Sapphire Textile
Shan Foods Food
Dalda Food
Mayfair Food
The most major customer for Packages Ltd. is Nestle which provides the company with a large
bulk of its sales. The products of Nestle are packaged juices and food items. Thus Packages
provides Nestle with the packaging of its variety of products such as Nestle Milo, Nestle
Bunyad, Maggi, Nestle Every day, MilkPak and its various other components, Lactogen, Coco
Krunch, Nescafe, Nido, Nestle Pure Life, Nestle Fruita Vitals, Nestle KitKat and numerous other
similar product types. (Administration, 2011) Customer specification is used by Packages Ltd. as
all these packages require attention to detail about what exactly the customer wants in terms of
the packaging. Nestle provides specification to Packages Ltd regarding the type of packaging,
the material, the sizes, the illustrations and even whether the packaging should be matte or
bright.

The complete offering provided to Nestle is not just in terms of delivery of the product but it also
involves exchange of information, finances and social information between Packages Ltd and
Nestle. This aids in providing a complete value offering to Nestle and develops cordial
relationships for future transactions as well.

Product Life Cycle

The product line of Packages Ltd include folding high quality cartons, flexible packaging and
technical expertise in terms of in house facilities.
Folding cartons is in the maturity stage as it has reached its high sales point. Flexible packaging
is in the growth stage this is due to the versatile environment and the constant innovations in
flexible packaging that makes it possible for Packages Ltd to attain even more sales from this as
if a new product is launched by a multinational company, they may have a new idea altogether
for flexible packaging. Lastly, technical expertise is also in the growth stage, this is because new
methods are constantly being added and profited from. For example Packages Ltd recently
started hot foil stamping on packaging and companies really liked that idea as makes the
packaging attractive and this process bought in a hike in profits for the technical expertise
product line.

The products of Nestle such as Maggi, MilkPak, Milo, Pure Life, Fruita Vitals and KitKat are in
the maturity stage thus their packaging done which is flexible packaging is also in the maturity
stage. This is because these products have reached an all-time high sales volume and is now
stable. These are the mature products which Nestle has which provide Nestle with constant
profits. Promotion done for these items is not too extensive and it is above-the-line mainly if any
in the form of television commercials or billboards. This promotion is done by the company in
order to ensure that these products continue to be profitable for the company. Moreover, changes
in the forms of different flavors and different packaging are continuously done by the company
in order to extend the overall life of these products. Whether it be changing the packaging of
Milo or introducing large packaging for KitKat. (Nestle Milo 4D Burst Energy TVC 2016, 2016)

Mr. Ajmal, Head of Marketing at Packages Ltd remarked on how the new Milo 4D straw
packaging was made different from the initial packaging to attract attention that something had
changed although the product had been the same but only the packaging differed which was
attractive to the customers of Nestle Milo.

Along with the existing products which had been in Nestlé’s portfolios since a long time, Nestle
continues to introduce new products targeting different segments in the society. The products
who are still in the growth stage include Nestle Lactogrow and Nestle Raita and consequently so
is their packaging. These are marketed more than the ones in the maturity stage to promote these
products and making consumers aware of their existence. These products are not highly
profitable but profits still manage to surmise. In this stage, the pricing strategy is according to
what the cost of the similar competitors’ offering is.
Lastly, Nestle Active is a product which has been recently launched by Nestle and Packages Ltd.
made the packaging according to the requirements of Nestle with a hint of pink and additional
information on the plastic bottle wrap. This product packaging is in the introductory stage as it is
the most recent modified design produced by Packages Ltd for a new product offered by Nestle.

New Product Development Process

For the development of a new product, it requires a lot of input in terms of creativity and labor.
In this case, the new product for Packages Ltd. had been the packaging for Nestle Active.
Initially, there were a series of meetings between key personnel from Nestle and the sales team
personnel at Packages Ltd to discuss the designing and the implementation for packaging of the
Nestle Active Water. Specifications were noted down according to the requirements of Nestle
and suggestions made to make those specifications viable. Although the material had to be the
same as used for the typical Nestle bottles but the bottle wrap, bottle shape and lid color had to
be changed.

Numerous different digital sketches were made out of which the most practical one was selected
based on the grip the consumer would have on the bottle. Moreover, adjustments were made
after testing the quantity of water inside the bottle which was to be 550 ml as specified by Nestle.
It was then tested by quality assurance and the Nestle team and then introduced in the market.
This entire process required the functioning of the finance department, sales department, quality
assurance department, flexible packaging department and digital design department at Packages
Ltd.

New Product Failure

According to Mr. Hassan, a part of the Sales Department, one product which failed according to
the company was Oye Hoye, a packet of chips. The packaging was made for United Snacks
based on the specifications they stated. Although the chips could have failed for numerous
reasons such as Lays and other competitors being more popular or people already being
accustomed to existing chips and Oye Hoye not offering any new flavors.

But according to Packages Ltd, one reason they believed was that the packet of chips itself
lacked to grab the attention of consumers due to the matte packaging used. Other chip packets
are made out of glossy, crisp packaging but the packaging and colors used for Oye Hoye packets
seemed dull. Thus this product failed.

Price

Few years back packages company was holding a position of monopoly in the packaging
industry but now market has fluctuated, many new competitors like Roshan packaging Saima
packaging Pak packaging have entered in the market thus market has been changed to
oligopolistic from monopoly. Thus, packages sell products to its long-term customers like nestle
at low prices compared to its competitors.

Moreover, packages limited is using cost plus pricing where the labor cost material cost is
incorporated to the product price that is sold to the customer. The material cost includes the
holding cost of material such as packages keep their raw materials in Bullehshah packaging.
Moreover, pricing also includes the transportation cost of transporting the product to its business
customers.

The economic condition also influences the pricing decisions of packages limited as it is
exporting most odf its raw materials from china therefore increase in dollar price increases price
makes the raw material expensive which ultimately increase the price of manufactured product.

Another factor that influence the pricing decisions are long term relationships with its customers
as they have to offer discounts and negotiations is done among the customers and packages.

As packages limited is in growth stage of product life cycle thus they are using competitive
pricing strategy packages provide its customers with products at lower prices as compared to
their competitor for example in the case of nestle, there are many competing companies offering
supplies to it for this purpose packages limited provide them the suitable product at lower price
than the competitors offering.

The prices are agreed through negotiations as negotiations takes place between both business
customers and packages limited and the price which is according to the both will be agreed.
The people and department that are involved in setting prices is the direct sales force team from
the packages side that negotiates with the buying center of nestle. The packages limited dales
force head reports buying centers head about the transaction

Packages limited gives the credit term of 30-45 days to its other clients but for nestle the credit
term is of 90 days.

Discounts

Discounts are the reduction in price for some special reasons they are usually given as reward
incentives taken by the buyer during the transaction as in the case of packages limited nestle is
its loyal and old customer and they have maintained strong long-term relationships with nestle
due to which they give them special discounts on the purchase e moreover they also provide
nestle with transportation facilities.

Business to business selling

Characteristics of business to business selling

In business to business selling the seller spend most of his time building and strengthening the
personal and business relationships with several individuals through out the buying center.
Packages limited create a repeated and ongoing relationships with its business customer such as
nestle through the course of continuous interaction packages minimizes the threat to the
relationships as R and D department communicates with nestle percurrent department every
month through formal meetings to discuss certain issues regarding to the packaging designs
quality and sizes.

Moreover, packages limited also adopts as a solution oriented effort as packages limited R and D
department after monthly meetings note down the issues and problems that are faced by their
client nestle regarding the packaging quality design size and try to resolve them as soon as
possible.

Further packages limited also fulfills the creativity demanded by their buyer nestle by providing
customized flexible packaging for different product category of nestle Pakistan such as they
provide different sizes and designs required by nestle for its beverages like mineral water,
cereals, tea whitener.

Relationship sales and marketing

The buyer seller relationship is one of the important differentiators between competitive
suppliers.

Packages limited creates relationships with nestle is based on loyalty and positive attitude
packages limited always ensured that it creates a long-term and strong relationships with nestle
through constant contact and by providing them with incentives that is different from other
competitors. As nestle is a giant in food and beverages industry and there are many competitors
willing to offer supplies to nestle Therefore it is important to maintain long-term relationship and
positive attitude and for this they come up with such offerings that are according to the demand
and suitability of its client nestle .Packages limited also provide extra benefits to nestle by giving
them credit terms of 90 days instead of 30 to 45 days which is usually compulsory for other
clients

Seller roles

The seller roles that packages limited perform are motivator problem solver and persuader in
which the sales force primary objective is to satisfy their customer need and to create unique and
seller takes a more proactive role in the relationship customer solutions through matching their
capabilities with customer needs. Packages limited sakes force team meet nestle on monthly
basis and try to answer queries as well as resolve the problems that nestle is facing by adjusting
their capabilities according to the demand of nestle for example the size, design problems they
have moreover packages treat its customers problems as their own problems. Moreover, the sales
force team also inform nestle about the improvement they have been working on and how it can
help them providing a high quality of the work.

The other type of selling role packages limited perform is post sale customer service in which
they acquire constant feedback from their clients and keeps track all the orders and services
provided moreover it also takes suggestions about the product quality design if any
improvements are required regarding the product offered ,possible solutions are provided.
Selling structure

Packages limited has its own sales force team that is involved in its sales coverage this sales
force which is made up of number of employees from R and D department, marketing, finance,
production.

The direct force team of packages limited is provided with training after six months whereas
compensation plan for sales force is combination compensation plan.

Channel relationship and supply chain

Raw materials and procurement

The raw materials required for flexible packaging are adhesives, inks, Polyester films and
aluminum foil. Thus, the procurement department of packages limited is responsible for
obtaining raw materials for packages limited.
The requirement department internally identifies the need of raw materials that it wants to
obtain, then the planning departments while coordinating with requirement department decides
the quality and quantity of raw material Procurement department keeping in mind the
information provided by planning and requirement department searches for the international and
national suppliers after selection of suppliers it negotiate prices and terms of shipments.

Inbound logistics

Operations

Operations is the stage where raw materials are converted into final product. The raw materials,
inks polyester films are transferred from stores to production rooms where three steps take place
solvent retention, size, Inc grammage. After these three steps polyester films are place on
rewinding machines for printing. Then the films are placed on unwinding machines which then
rolls the films. After this the films are sent for lamination where laminating sheets are attached
with films with the help of glue. After assuring that films are completely attaches with the
lamination sheets the flexible packaging films are cut down according to the packaging of the
product and last packing of films takes place.

Outbound logistics
Marketing and sales
Marketing and sales involve advertising, promotions, sales-force organization, distribution
channels, pricing and managing the final product to ensure that product is provided to selected
customers.Pcakges limited does not focus on promotional activities and the only promotional
activity it performs is that its sales force encounters its customers and inform them about the
new changings and how are these going to helpful secondly it is only through trade fairs and
products and they use their website www.packageslimited.com.pk to market their products.

Customer service

Packages Limited do not visit their potential customer to attract their interest until and unless,
they’ve had an experience with Packages Limited. A team of Marketing and Sales, Designers,
marketing and finance managers of packages visit the head office of the potential
client. The designers see the product and examines the number of processes required and the
finance manager calculates the cost required for each product.
 Promotion
Packages limited focuses on creating loyal, strong and constant relationship with its suppliers. It
mainly emphasizes on making sure that all its processes, methods and techniques comply with
the greatest peaks of professional behavior. Since packages limited focuses on creating strong
relations with its suppliers, therefore it uses direct promotion rather than indirect promotion.

Direct marketing is essentially a promotional technique that includes showcasing information

about your company, product or service to your principal customers without the use of an
advertising middleman. Indirect promotion on the other hand refers to the sales communication
which is brought to the consumers through interceding media such as television, radio etc.
Packages limited therefore promotes building direct relationship with the suppliers and enhances
personal contact. Moreover, direct promotion assists in building brand loyalty since Packages
limited frequently shares the brands’ message on various, dissimilar direct marketing channels.
Its sales force meets and interacts with its target customers every year and enlightens them about
the new, more innovative changes that Packages limited has undergone, tells them about the
changes in various strategies, and also notifies them about the products and services it would be
offering and how these alterations are going to be useful in the future.

In addition to this, the suppliers of Packages limited also nurture and boost their new and
existing contributions to packages through effective direct contact channels including electronic
mail, phone calls etc. Added to this, the local suppliers also continuously visit the respective
departments at packages to provide the necessary raw materials in order to maintain their contact
with the company and to grasp an idea about their future requirements and needs.

Moving on, in order to display its existence and presence of being the industry leader, it
showcases its company through trade fairs and Expos. The representatives of packages limited
attend and participate in various international exhibitions to interact with international suppliers
and to keep themselves updated on the recent and advanced supplier offerings. Apart from this,
its not involved in any other promotional activities taking place in the consumer mark
Bibliography
Administration, I. o. (2011, January 21). Food products: NESTLE PAKISTAN LIMITED.
Retrieved from Business Recorder: https://fp.brecorder.com/2011/01/201101211146115/

Nestle Milo 4D Burst Energy TVC 2016. (2016, April 16). Retrieved from Myipedia:
http://myipedia.blogspot.com/2016/04/nestle-milo-4d-burst-energy-tvc-2016.html