internship report on dairy industry for marketing

University of Education
Lower Mall Campus, Lahore
Department of Management Sciences
Internship Report
Sapphire Dairies (Pvt) Limited
A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE IN THE
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (3.5 YEARS).
Submitted By: Muhammad Sajid Majeed
Roll No: 28
Session: 2011-2015
Submission Date: December, 08 2014

University of Education
Lower Mall Campus, Lahore
Department of Management Sciences
Letter of Undertaking
This internship report was submitted by __________________ S/o.
________________________ Roll No. ________________ for the partial fulfillment of the
requirements for the degree of
MBA (3.5 years)
Session (2011-2015)
With specialization in
Marketing and is hereby accepted by the evaluation committee.
Internship Supervisor ________________________
Principal ________________________

D E D I C A T I O N
“THIS INTRNSHIP REPORT IS DEDICATED TO ALL BUSINESS STUDENTS”
I would like to dedicate this internship report to all business students who are
struggling to become business professionals and plan to achieve the dreams of their
parents. We hope that they would extract useful content out of this report and today
we feel honored to be able to help someone. May ALLAH help all of us!

Acknowledgement
We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because
the words are bound, knowledge is limited and time is short to express His dignity. It is one of
the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to
complete the present training and make a material contribution towards the deep oceans of
knowledge. First we avail this opportunity to bow our head before ALLAH almighty in humility
who given us the wisdom and perseverance for completing this piece of six weeks internship. We
invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch I feel highly privilege
to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the
Sapphire Dairies (Pvt) Limited on providing me the opportunity to have an internship on this
leading food and dairy production unit. It would honor for me to pay gratitude to Mr. Hossam
Moner, production manager of Sapphire Dairies limited, on his encouragement and providing me
the facility to learn. I am highly thankful to Dr. Naveed Anjum, shift in charge, senior manager of
research and development department of quality assurance of Sapphire Dairies (Pvt) Limited and
special thanks to Assistant Brand Manager and Marketing Manager for their nice and co-operative
behavior and reading to guide attitude during my training. I am also obliged to all
the staff and workers of Sapphire Dairies (Pvt) Limited of their co-operative behavior.
No acknowledgement could cover adequately express my obligations to my dear father and
mother who ever remembered me in their prayers and supported me in all aspects along awful
venues of me academic achievements.

Executive Summary
This report is prepared for the requirement of my degree MBA (Marketing). Internship was
started on September after knowing all the relevant information about the marketing, under the
guidance of Mrs. Arshia Rauf. The first part of my project involves the study of distributors
allocated to me Identification of their problem areas and helping them in order to increase sale.
For this I used the method of personal interviews and questionnaires. At the same time, they
were being made aware of the incremental scheme of Sapphire Dairies (Pvt) Limited for the
distributors. Along with the distributors a study of retailers was conducted to better understand
the grievances and identify the gaps. For this I visited some outlets in the areas. I was also
supposed to find out new retail outlets and convince them to sell Sapphire Dairies (Pvt) Limited
products by showing them the opportunity of getting attached with Sapphire Dairies (Pvt) Limited
and increase the customer base. Despite of summer and low demand I was successful in
persuading people. The second part of my internship is the study of consumer attitude towards
Sapphire Dairies (Pvt) Limited or more specifically the factors affecting the decision of purchase of
milk and other products.

Table of contents
1) Profile of the Industry -------------------------------------------------------
2) Overview of the Organization -----------------------------------------------
2.1) History --------------------------------------
2.2) Vision Statement --------------------------
2.3) Mission Statement ------------------------
2.4) Introduction of the Organization -------
2.5) Company Policy----------------------------------
2.6) Market Standing ---------------------------
2.7) Competitors --------------------------------
2.8) Business Volume --------------------------
2.9) Product Lines ------------------------------
3) Organizational Structure ----------------------------------------------------------------
3.1) Organization Hierarchy Chart -------------------
3.2) Number of Employees ----------------------------
3.3) Main Offices ---------------------------------------
3.4) Brief Introduction of Different Departs. -------
3.5) Comments on the Organizational Structure ----
4) Internship Program Plan ----------------------------------------------------
4.1) Brief introduction of branch area ---------------------
4.2) Starting and Ending date of Internship ---------------
4.3) Departments Name where Got Training --------------
5) Training Program -------------------------------------------------------
5.1) Detailed Description of operations and activities ------

5.2) Detailed Description of the tasks assigned to me -------
6) Structure of concerned specialization department i.e. Marketing----------------------
6.1) Department Hierarchy ----------------------------
6.2) Number of Employees working in Marketing Department -----------
7) Marketing Functions ----------------------------------------------------------
7.1) Product Service -------------------------------
7.2) Pricing Strategies -----------------------------
7.3) Distribution Channels -----------------------
7.4) Promotions ------------------------------------
8) Critical Analysis ---------------------------------------------------------
9) SWOT Analysis ----------------------------------------------------------
10) Conclusion ---------------------------------------------------------------

Profile of the Industry
World milk production:
Two thirds of total world milk is produced by Brazil, India, Pakistan, Poland, Russian
Federation, USA, and 15 EU member states. Pakistan’s share in the total production of the world
according to which, Pakistan in the fourth largest milk producer in the world.
Livestock contribution to agriculture value added stood at 55.9 percent while it
contributes 11.8 percent to the national GDP during 2013-14 compared to 55.5 percent and 11.9
percent during the corresponding period last year, respectively.
Gross value addition of livestock has increased from Rs. 756.3 billion (2012-13) to Rs.
776.5 billion (2013-14), showing an increase of 2.7 percent as compared to last year.
World milk production by type of milk
Various animals including buffalos, cows, sheep and goats produce milk. Total
world milkproduction is dominated by cow’s milk followed by buffalo, goat and sheep
.According to FAO estimates, out of the total milk production in 2001, cow’s milk accounted for
84.6% of the total world milk production followed by buffalo milk (11.8%,), goat milk (2.1)%
and sheep milk (1.3%).

Milk production in Pakistan
Pakistan is the fourth largest milk producer in the world. About a third of the total
milk produced by the rural families’ flows out to urban consumers and processing industries. In
urban areas milk is available to common consumers in two ways: loose / unprocessed milk and
packed/ processed milk.
Dairy companies such as Nestle, Gourmet, Haleeb are the main part of milk marketing
structure. Sapphire Dairies as local company, which developed from a small structure. Livestock
sector in Pakistan contributes almost 50 percent to the value addition in the agriculture sector,
and almost 11 percent to GDP, which is higher than the contribution made by the crop sector
(47.4% in agriculture and 10.3% in GDP).
The role of livestock sector in the rural economy is very crucial as 30-35 million rural
population of the country is engaged in this sector for its livelihood. Within the livestock sector,
milk is the largest and the single most important commodity.

Pakistan also has an industrial production capacity of approximately 47.5 million liters
per year of ice cream. Pakistan's dairy industry is plagued by a number of problems
which include lack of commercial dairy farms, low productivity due to poor nutrition, a weak
infrastructure, lack of financial facilities, and the ready availability of raw milk to a poor and
uneducated population. Although Pakistan was ranked fourth among the five leading
milk producing countries in the world, with an estimated 24 million animals having produced
closely to 28 million tons of milk in year 2003 and over 31 million tons during 2005-06as the 5th
largest producer of milk in the world, its yield per animal is only one-fifth of that of Western
Europe.

Poultry Sector Growth:
Poultry Sector has contributed 1.3 percent in GDP during 2013-14 while its contribution in
agriculture and livestock value added stood at 6.1% and 10.8 % respectively.
Poultry meat contributes 28.0% of the total meat production in the country. Poultry Industry is
more than Rs. 200.00 billion. Poultry sector has shown a robust growth @ 8-10 percent annually
which reflects its inherent potential.
The poultry value added at current factor cost has increased from Rs. 121.7 billion (2012-13) to
130.7 billion (2013-14) showing an increase of 7.4% as compared to previous year.

Overview of the Organization
History
Sapphire Dairies® is part of the Sapphire Group which is one of the largest manufacturers
and exporters of textile products in Pakistan. Sapphire has over 14,000 employees with an annual
turnover US $ 550 Million, along with an asset base of over US $700 million.
With about 38 billion liters of milk produced annually, Pakistan is the third largest producer of
milk in the world. Keeping this figure in mind along with the rapidly changing demographics,
widening supply/demand gap, improving in consumer taste and increasing consumer awareness,
Sapphire Group, ventured into the dairy sector.

Vision Statement
Most Innovative and fastest growing Dairy Company offering many products enjoyed in “every
home every day”

Mission Statement
To build flexible production capabilities in the dairy industry to cater to the growing and
evolving global demands, keeping a lead position in our business, maintaining our values based
on good business and ethics, and at the same time contributing in the development of the
community in which we work and live.

Introduction of the Company
Sapphire Dairies Limited is one of the fastest growing packaged dairy companies in Pakistan
with an annual turnover rate of 7.2 Billion. It was incorporated in 2008. Within a short span of
just 5 years ,the company is operating in 5 businesses segments; UHT milk, Cream, Juices,
Powdered milk & Butter oil. Sapphire Dairies has achieved undisputed leadership in the
liquid packaged milk category with a market share of more than 56%. The company has a very
strong portfolio consisting of leading National / International Brands.
Company Policies
Company is committed:
1) Build branded dairy business to improve the quality of life by
offering tasty, Safe, hygienically processed, affordable, highly nutritional
dairy products through environment friendly processes to our customer while
maximizing stake holders’ value.
2) Meet the requirements of all the relevant legis la t ion & regulat ion
related to Customer satisfaction & safety, environment& other applicable
laws etc.
3) To prevent pollution through controlling level of harmful emission,
effluents &other wastes
4) Contribute to the safe & the healthy environment for our country.
5) Promote mutual trust with customers, suppliers, employs, shareholder &Comm
unity.
6) Provide all the necessary resources for the continual improveme nt in
quality, safety of our products, process & environment.

Company Objectives:
Quality Objective
 Provide regular and timely supply of milk and milk products at convenient distribution
points under clean and hygienic condition for different segments of consumers.
 Provide remunerative returns to milk producers and other associations.
 Promote innovations, continuous learning and improvement.
Social objective
 Protect the rural marginal milk producing farmers from exploitation of profit earning
middleman.
 Help them rear their cattle in hygienic condition thereby increasing production of Milk.
 Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable price
throughout the year, right at their door step.
Company Values:
People
Relationship
Integrity
Diversity
Environment
Dealing

Relationship
Integrity
Envoirment
Diversity
People
Dealing

Market Standing
As far as market share is concern according to “Digest of Industrial Sectors in Pakistan “in a
UHT packed milk category MILK PACK is dominated by other brand having more than 3000
collection centers and get market share more than Sapphire Dairies (Pvt) Limited was 44%,
and as Engro Chemicals also steps in the dairy industry and launches a milk name “OLPERS”
and in less than a year they declare a notice on September 13,2006, as per the notice they able to
captured 9% of market share and utilizing their 70%capacity of their production unit is going to
set another milk processing plant in Punjab and rest of 2% comes.
Competitors
Different Competitors of Sapphire Dairies Limited is following:
1) Nestle Milkpak Limited
2) Yummy Milk Products
3) Engro Foods
4) Prime Dairies Limited
Nestle
milkpak
Limited
Engro
Foods
Limited
Yummy
Milk
Products
Prime
dairies
Limited

Business Volume
2008
• 350
cows
2009
• 850 cows
2011
• 1,600
cows
• 850
milking
• 19,000
liters/day
2012
• 4,000
cows
• 2,400
milking
• 60,000
liters/day
2020
• 8,000
cows
• 5,000
milking
• 150,000
liters/day
Annual turnover over 874 million USD
More than 15,000 employees
Asset base over 760 million USD

Product Lines:
 White Gold
Sapphire Dairies believes in hygiene and good quality milk. We have the best milking
equipment provided by the Swedish company "De Laval", which is gentler, more efficient and
effective. We are committed to provide natural and hygienic dairy products to the people of
Pakistan. That is why we make sure that the milk reaches the customer in its purest form with all
its nutrients intact. Our milk is unprocessed and in raw form because for centuries in our part of
the world, the consumer has been using raw milk. However, as our goal is towards modern dairy
farming practices (which are not common in Pakistan) so we are working toward the processing
of our milk in an effort to provide our customer with the best quality dairy product.
 Unipure
Our brand Unipure's White Gold is a complete nutritional value of milk as it comes to you fresh
from the cow's udder. To consume what nature has bestowed to the cow, White Gold brings to
you thick creamy milk without any adulteration and preservatives or chemicals. That is why
when boiled, a very thick layer of rich cream surfaces which indicates its purity and freshness. It
is obtained from healthy Australian Cows that are kept and reared using most modern and state
of the art facilities supervised by professional management.
White Gold is raw milk; therefore it needs to be boiled before usage, as boiled milk stays fresh
for a longer time in the refrigerator and can be consumed within 3 to 4 days. White Gold can be
conveniently used for making yogurt, butter, cheese and ghee.
White Gold is premium quality milk and is the best alternative for the loose or other forms of
milk available in the market. It offers a great taste and complete nutritional value as compared to
loose milk which does not adhere to the required hygiene levels and is contaminated with
bacteria. White Gold maintains a high standard of milk quality as it is processed through a
mechanized and fully automated milking system. The milk is stored in clean containers in its
original form without any changed made to it. Every pouch of White Gold offers 100% fresh raw
milk and nothing else.

Organizational Structural
The entire structure of the organization of Sapphire Dairies (Pvt) Limited can be broadly
divided into 3levels, each level having separate roles and responsibilities. These 3 levels are
upper management, senior management and the middle management. Each of these lower levels
is responsible to perform Its functions and thereby report to the next higher level in the
organization on a periodic basis. Overall, we can say that the company has a flat structure,
beginning from the top management to the lowest level of management. The Upper Management
of the company has designation like the Managing Director of the entire company and the Group
Executive officer. The Senior Management has the various Vice Presidents of the different
departments which come directly under the Managing Director. Under the Vice Presidents we
have the Chiefs of the various functions who coordinate the activities of its function along with
the other departments. There can be more than one chief in a department depending upon the
number of line of the products. This is seen in the Long Products Departments.
Sapphire Dairies Limited diversified their business in dairy industry because in Pakistan we
have 180 Million people. It is large market size to serve and dairy demand is increasing
continuously for the population. Sapphire Dairies. wants to serve medium and low segmented
cigarette for their target market. In dairy industry, there are many local & foreign companies.
Sapphire Dairies wants to be local unique dairy farmer with the same quality of foreign
company. Sapphire Dairies has its own marketing & sales department in Sapphire Dairies
chamber. The functions of this distributor are very wide and dynamic. Main functions performed
by this department are:
 Product orientation program
 Collection of commodity transferred
 Create market for its product
 Push sale adopt
 Problem solving of sales representatives
 Developing communication strategy
 Preparing sales forecast

 Maintain sales management in the field
 Keeping record of sales
 Keeping record of stock
 Collection & analysis of competitors activities
 Setting Sales Target amount
 Revising Sales Target amount
 Maintaining Sales Target amount
Beside these, it performs a number of activities to conduct their day-to-day business. Under
marketing & sales department, a Brand team performs the key role of real marketing.
Span of Control & Unity of Command
Span of control refers to the number of subordinates a supervisor has. There are two types of
span of controls which exits in the many organization.
1. Wide span of control:
Wide span of control means a single manager or supervisor oversees a large number of
subordinates. This gives rise to a flat organizational structure.
2. Narrow span of control:
Narrow span of control means a single manager or supervisor oversees few subordinates. This
gives rise to a tall organizational structure’s Sapphire Dairies have narrow span to control due
to the following reasons
 Workers are located in different geographic locations like Gujranwala, Faisalabad, and
Karachi.
 Because Sapphire Dairies requires great deal of interaction between supervisor and workers
 New problems arise frequently
3. Unity of Command
The unity of command principle states that an employee should have one and only one
supervisor to whom he or she directly reports. No employee should report to two or more

supervisor since each supervisor has their own priorities. So the same principal is adopting by the
Sapphire Dairies because the smoothness of the work.

Organizational Behavior
Organizational behavior is simply the understanding, prediction, and management of human
behavior in organizations. In other words, organizational behavior is involved with the study and
application of the human side of management and organization. Sapphire Dairies being an
organization in the competitive business community also needs to carefully concentrate on
behavioral side of human management. The important issues in this regard follow:
JOB DESIGN
In recent years Sapphire Dairies has adopted job rotation form of job design, by providing to its
employees a greater variety of work by transferring them to different departments. Particularly
the marketing analysts enjoy the benefit of job enrichment, too, through visits to assigned
projects. The staff members are also sent to attend various courses offered by other institutions in
the country as well as abroad. This practice enhances their experience and skills.
JOB SATISFACTION
Almost all the officers of the high level management come through CSS. Their qualification
does not match with their professional work. So they face some kind of problems in performing
the daily routine work. In some departments there is a very little job satisfaction among the
employees. But the overall the people are satisfied with their job up to some extent.
JOB STRESS
Stress is an adaptive response to an external situation that results in physical, psychological or
behavioral deviations for organizational participants.
The following types of stress may result in job stress.
1. Extra-organizational stress
2. Organizational stress
3. Group stress
4. Individual stress
5. Job stress
The top management of Sapphire Dairies has taken measures and made efforts to minimize the
negative stress amongst the employees. In organization special efforts are being made to reduce
group stress by making the employees realize that they are an essential part of the organization
and a sense of involvement is provoked amongst them.

Another reason for this low negative stress is the fact that there are no inter-personal or inter-group
conflicts in organization. There is an environment of mutual understanding amongst the
unions of the officers as well as employees. This is also due to the fact that the top management
takes keen interest in these matters.
PERSONALITY DEVELOPMENT
Personality means how people affect others and how they understand and view themselves as
well as their pattern of inner and outer measurable traits. The development of personality is a
continuous process by which children gradually acquire pattern of overt behavior, thinking
problem solving, emotions, conflicts and ways of coping with conflicts that will go to make up
their adult personalities.
Organization should give a great deal of attention in this regard. Suitable environment along with
other opportunities should be provided to the employees to understand themselves and to
evaluate themselves. It should also offer more refresher courses to both its officers and its
employees, inside and outside the country that will groom their personalities. They should be
taught how to use their knowledge and skill effectively in practice and how to plan their daily
work in a better way.
Organization should also introduce the following concepts, which will surely develop the
personality of its employees.
 Job responsibility is given to the employees and a close check to see how people
respond to their employees.
 Relationship of the employees with their clients and other persons.
 Proper turnout of the employees, as it makes a significant impression on the
customers.
 Regular checks to confirm that people abide by the rules.
 Punctuality and regularity of the employees
INTER-PERSONAL RELATIONSHIPS
The success and prosperity of an organization depends upon its inter personal relationships.
There are pleasant relationships because people are getting high monetary rewards. High-level
officers work in close coordination with the middle level officers and the clerical staff in the
form of a team. In all the departments, different teams are formed comprising a high official.
There is a lot of interaction between the different levels of management.

Training Programs
All the training and recruitment policy for the employee is set by the Government of Pakistan.
All the officers appointed here come through the CSS. So the training is done on the selection of
the officers and later on some training programs are managed by the organization. Sometimes it
sends its employees to the foreign for the training. But the percentage of the officers is very low
who go abroad for training.
So organization has no recruiting policy. Some of the people are kept by the organization on the
contract basis but their limits are also mentioned by the Government.

Organization Hierarchy Chart
Admin
Manager
Marketing
Manager
Research and
Development
Officer
Shift Incharge
Production
Manager
Dairy
Supervisior

Number of Employees
Sapphire Dairies is part of the Sapphire Group which is one of the largest manufacturers and
exporters of textile products in Pakistan. Sapphire has over 14,000 employees with an annual
turnover US $ 550 Million, along with an asset base of over US $700 million.
Main Offices
Sapphire Dairies (Pvt) Ltd.
7-A/K, Main Boulevard,
Gulberg II, Lahore 54660, Pakistan
Different Departments Detail

internship report on dairy industry for marketing

More Related Content

What's hot (20)

Viewers also liked (20)

Similar to internship report on dairy industry for marketing (20)

Recently uploaded (20)

internship report on dairy industry for marketing