6134102261870Thriving to Succeed00Thriving to Succeed1242060173355-1047115-256794000-388620-171450-3695702590800-1790702857500-1047115-6464300094615553085A Business Report by: Muhammad Ali & Mahrukh Khan00A Business Report by: Muhammad Ali & Mahrukh Khan401955130810-111188515494000391096567310BY:Muhammad AliMahrukh KhanShayan Haider00BY:Muhammad AliMahrukh KhanShayan Haider-63690570485Ismail Industries Limited. 17, Banglore Town,Shahrah-e-Faisal, Karachi – 75350, PakistanEmail: [email protected]: www.candyland.com.pk00Ismail Industries Limited.
17, Banglore Town,Shahrah-e-Faisal, Karachi – 75350, PakistanEmail: [email protected]: www.candyland.com.pkTABLE OF CONTENTSAbout…………………………………………..
………….Form of Business Vision Statement………………………………………………….….
……………Mission Statement and Values………………………………….………..
………Code of Conduct……………………………………………………Industry Analysis………………………………………..…………………………Corporate Social Responsibility ……………………………………………….Global Presence………………………….. Marketing………………………………………………………………….
Financial plans ……………………………….………………………………Competitors…………………………………………………………………Interviewer……………………………………………………………………Conclusion…………………………………………………………………..ABOUTThe Ismail family has been associated with the biscuit industry since 1950s. In the year 1988, Ismail Industries Limited emerged on the business landscape of Pakistan and ever since has expanded its horizons in multiple industries.
From delightful treats to industrial raw materials, Ismail Industries offers a broad spectrum of quality products to its consumers and corporate customers. This journey started from Candyland, the first division of the group, which is not only a star performer for the group but also a leader of the industry in confectionery products.Candyland is recognized as a leader in the confectionery market of Pakistan, offering a large selection of products in more than 30 countries around the world. During 30 years of Candyland’s existence, it has become known as one of the most innovative and creative companies. Candyland is the pioneer in jellies and has launched brands in technically challenging categories such as pure chocolates, lollipops and marshmallows.The foundations were laid down in 1988 and since then, the company has constantly expanded into different product categories and set up state-of- the-art facilities that has enabled it to become one of the most technologically advanced and superior companies within the industry.
Candyland has achieved this position by launching and nurturing some iconic confectionery brands that include Chili Milli and ABC Jelly, Funny Bunny Lollipops, Puffs Marshmallows, Fancy candy. Our range of Chocolates boast established brands such as Novella, Now, Paradise and Sonnet. All our brands are ISO 22000 Certified and Halal Certified from SANHA. Our commitment to quality is endorsed by ISO 22000 Certifications. All our brands proudly carry Halal Certifications from SANHA.Today, the company has a highly qualified and experienced technical and business team, along with one of the largest sales force in the category. The goal is to ensure the best customer value proposition is delivered in every corner of the country.-19558076136500-266705080000COMPANY PROFILEFORM OF BUSINESSCandyLand, right now the biggest candy parlor organization in Pakistan, began its activities on June 21, 1988.
The establishments for the primary generation plant were set down on 1 acre of land, and the main brand was propelled in 1990. Starting there onwards, the organization has always accomplished one turning point after another, and today we have extended our creation offices to more than 8 acre of land.VISION STATEMENTWe expect to offer superb items to our customers by outstanding the most innovatively propelled organization in our field. We endeavor to be mark pioneers in every one of the classes that we contend in. We wish to have a considerable nearness outside of Pakistan, through export and neighborhood producing.
MISION STATEMENTWe endeavor to convey to our consumers’ reliable quality of items which expand our qualities and clients fulfillment. We are broadly taking into account the local markets and reinforcing our underlying foundations in international ones. We wish to combine and fortify our situation as the most mechanically propelled organization in our field. We perceived the significance of effectiveness and inventiveness to accomplish development in a focused situation. We accept and ideally consolidate our kin, innovation, administration framework and chances to accomplish productive development while giving reasonable comes back to our investors. We understand our duty towards society and add to our condition as great corporate resident.CORE VALUESTeamwork: It’s not possible for anyone to get there unless everyone get there.
We focus on leveraging collective efforts and support a culture of valuing each activity, huge or little. Fairness: Fairness is an expert aptitude that must be created and worked out. We keep decency foremost, we do what we say.Belief: Achieving something requires faith in oneself, the sky is the limit for the individuals who accept. We have confidence in our items, our procedures, our accomplices or more all, we believe in each other.Leadership: Business execution is driven by compelling pioneers who can really move individuals to release their own and aggregate potential. We give authority as an organization and as people with vision, correspondence and energy Excellence: Excellence isn’t an exemption, it is a predominant mentality. We see perfection as a persistent procedure of increasing present expectations in all that we do.
CODE OF CONDUCTCode of conduct is an arrangement of composed rules that spell out what constitutes proficient and amateurish conduct for workers of an organization or individuals from an expert affiliation. It ought to mirror the center estimations of the association, guaranteeing that representatives will act in administration of those center qualities rather in logical inconsistency of them.Candyland Pakistan has the following code of conduct for their employees:The Company’s approach is to lead business with trustworthiness and respectability, and be moral in the entirety of its dealings, indicating regard for the enthusiasm of those with whom it has connections. The Company conforms to all laws and controls. All workers are relied upon to acclimate themselves with laws and directions representing their individual territories of duty, and not to transgress them.
If all else fails, workers are relied upon to look for guidance. The Company trusts in reasonable rivalry, and backings proper rivalry laws.The Company does not bolster any political gathering nor adds to the assets of gatherings whose exercises advance political interests.The Company is focused on giving administrations that reliably offer an incentive regarding cost and quality, and fulfill client needs and desires.The Company is resolved to maintain its business in a situation that is sound and supportable. As a decent corporate resident, the Company perceives its social duties, and will attempt to add to network exercises for the improvement of the general public all in all.
The Company puts stock in and completely clings to the standards of dependability and validity in its money related revealing and in straightforwardness of business exchanges. The Company is an equivalent open door boss. Its worker enrollment and special strategies are free of any sex predisposition, and are legitimacy and brilliance situated. We have confidence in giving our representatives sheltered and solid working conditions and in keeping up a solid channel of correspondence with them.
The Company anticipates that its representatives will submit to certain individual morals, whereby Company data and resources are not utilized for any individual favorable position or pick up. Any irreconcilable situation ought to be kept away from, and if where it exists, it ought to be revealed and direction looked for. The Company Board is to guarantee that the above standards are entirely consented to, for which reason the Board has constituted the review advisory group to be steady of consistence.INDUSTRY ANALYSISProduct lineProduct StrategyCANDYLAND under the umbrella of “Ismail Industries” has been known as an innovator and a trend setter in its product categories, have extended in to the following categories:MarshmallowsCandiesToffees, chew toffees, bubble, chewing gumsLollipopsJelliesChocolatesEach portfolio is further extended into different varieties for example toffees is divided in to plain and filled toffees.Jellies are available in weights from 1g to 30g per piece. These are packed individually in small or large bags, by weight or numbers and also in bulk packs.Jellies are based on a combination of gelatin, pectin, and starch, with different variety of shapes.
Candies are manufactured in ball, oval, disk and bar shapes and have variations in weight, color, flavor and texture.Marshmallows were the most recent extensions of the range of products offered by CANDYLAND, with further expansions in chocolate manufacturing capabilities by the middle of 2015.CANDYLAND innovated and launched a product that no other confectionary manufacturer in Pakistan had ventured into at that time-Jelly.The company is committed towards its consumers; working to build customer expectations and then striving to meet and exceed their expectations by focusing on their new demands and tastes through research.Indirect competition with ice-cream, as the sales of candies increase in winter season as comparatively to summer season, in which the sales of candies get little bit lower.
3901440328295Organic Acid00Organic Acid307340314960Sugar00SugarPRODUCTION PROCESS43592752012950067183031750041052751062355Spice00Spice3073401115060Glucose00Glucose56953158991600066992589916000435927589916000471805200660003161665-138430003616325201295006699252006600027730451678940-274320505460ASSCOCIATED CHAINS WITH QUALITY CONTROLS STUDYThe organization makes and offers top notch sugar confectioneries items under the brand name of Candyland. Candyland produces distinctive products to fulfill diverse markets and customer inclinations. Candyland utilizes fantastic crude materials and cutting edge innovation which builds cost, yet it swears off high overall revenues so as to keep costs sensible and in accordance with the opposition.Demand ForecastingThe essential suspicion that Candyland has on which it bases its demand forecast is that one child spends one rupee for every month on Candyland item. Candyland has the upside of moving items starting with one territory then onto the next when it faces vacillations sought after. For example, if the organization can’t offer a nearly higher evaluated item in a low salary territory, it shifts them to a high wage area with the goal that they (Candyland Products) are sold around there. With reference to the Dillworth’s pyramid, Candyland involves the two legs of value and cost.Capacity Requirements PlanningCandyland has an aggregate settled limit of 6,000 tons of confectionery per annum.
Candyland works in an industry portrayed by fluctuating interest. Typically Candyland utilizes two movements of specialists. In times of appeal, Candyland utilizes a blended system of shifting it work powers size and stock. The abundance stock store frame times of low movement initially used to take care of the expanded demand.Materials Management and Inventory DeterminationThis arrangement is made for every individual item. Stock is requested by the group of items. This is on account of results of every family contain numerous comparative materials, and it isn’t critical to arrange materials independently for every item.
Lead Time and Safety StockCandyland does not bring about extensive stockpiling costs as most its crude materials are not extremely cumbersome. Privately secured or imported Space possessed by the materials. The wellbeing stocks for imported items are bigger, while those for the privately acquired materials are littler.
A large portion of the foreign made crude materials are flavors and bundling, which are exceptionally made for Candyland. Since the reordering cost for these things are high because of cargo costs, Candyland puts stock in requesting these things in mass to lessen reordering costs and guarantee consistent supply. The lead times for imported materials are 10-12 works. Candyland wants to keep sole providers for its transported in crude materials as these are custom fitted to Candyland’s needs. For every result of Candyland have its own individual pressing materials and its own particular flavor.
Besides, this game plan likewise causes the organization to guarantee great nature of crude materials.SchedulingScheduling depends on the request plan produced by the sales office.Quality ControlQuality control happens at three levels. Receipt of crude materials During creation Finished Goods Candyland starts its quality control with materials acquirement, where having sole providers guarantees top notch crude materials.
The crude materials are then assessed upon conveyance by the quality control office. Quality is guaranteed amid generation by arbitrary checks led by the quality control directors. Specialists are additionally prepared to examine the item as it goes through the generation procedure.CORPORATE SOCIAL RESPONSIBILTYCandyland is a socially mindful organization as it’s their conviction to serve the general public and to have any kind of effect in the networks encompassing them. We serve the networks by the excellence of our CSR activities like blood gift drives and giveaways in the fields of wellbeing, instruction and some more.
Candyland in association with Indus Hospital organized Blood Donation Camp at its Corporate Head Office on 22nd November 2017.A fun filled day at Candyland Hub with Children of The Garage School As a socially responsible corporate, there is always a focus on environment friendly operations, ethical business practices and responsibility towards the communities.GLOBAL PRESENSECandyland is Pakistan’s biggest candy store exporter, at present sending out to in excess of 40 nations around the world including USA, UK, Canada, Australia, Europe, Far East, Middle East, Africa and the GCC. Candyland’s International Sales group is tuned to give productive help and a one-window task to clients, guaranteeing IIL’s steady execution in the worldwide market. The division is in charge of securing send out requests and opportune execution according to recommended standards of value; and is completely outfitted with the information of the methods connected in trade arranging, trade tasks, correspondence and co-appointment with merchants, delegates and dispatching lines.In quest for the objective of continuous market extension, Candyland’s International Sales group has multiyear round program of limited time exercises for sending out items and administrations which incorporates taking part in universal exchange fairs in various districts of the world. Candyland always endeavors to address the necessities and needs of the global purchasers and takes after a buyer situated approach.Candyland’s success over the last 25 years as Pakistan’s premier exporter of confectionery has been made possible by providing its customers with a steady stream of premium quality products, supplemented by customer support and service.
We look forward to enhancing our presence in the international arena and developing lasting relationships with new and existing buyers.MARKETINGMarketing Strategies:Targeting StrategyThe significant fragments to which “CANDYLAND” cater, differs from item to item simply like some other name in the business. The Target market would be difficult to characterize, the essential reason being the enormous item portfolio having in excess of 120 items taking into account diverse target group of onlookers. “It isn’t generally vital that brand chiefs distinguish the objective fragment viably” (Aisha Ameen, Brand Manager, CANDYLAND)The brand has picked up center by entering into the correct portions that is coordinating their endeavors straightforwardly at schools where they can best spotlight on their intended interest group (Kids), as opposed to concentrating on forceful showcasing channels, for example, publicizing and deals advancement which have a powerlessness to impact the brand picture by even a solitary oversight. Promotional StrategyThe primary technique in advancement is to break the Clutter by indicating Innovation.
They publicize less on TV. Karachities visit EXPO EXHIBITION generally; they get higher reach over yonder on account of the less recreational places in Karachi. Inside school, they go for CANTEEN BRANDING by brightening the CANTEEN with their POS Material and buntings. ABC drawing rivalry was held in a few schools, and blessings were dispersed. Outlined a Candy shop in various shopping centers of the nation.Sales Promotion StrategyIncentives; change throughout the years relying available patterns, yet for the most part the organization endeavors to remain in front of its significant rival “Hilal” on this, and the item request/quality aides as an extensive guide in such manner. The Incentives are of the accompanying kinds: Brand based impetuses Carton based impetuses; e.g.
giving motivating forces on special of 1000 containers for every month Point-of-offer materials are likewise dispersed, to have a decent association with retailers, and to draw in the purchasers.Target Market and Consumer ProfileProducts/brands Demographics Lifestyle Attitudes InfluencesChocolates are focused towards teenage boys 12-19 year old and single students Majority are studentsMusic, mobile phones, internet and hanging out with friends are their favorite time pass The group is highly conscious about their physical appearance Their choice driven by their peers.Highly brand conscious because they want to appear cool and have a good impression on othersJelliesLollipopCandiesChewing GumsMarshmallowsChew Toffees 5-88-12Males and females students Young boys and girls who lead busy livesThey spend their days in school or tuitions or Madarshahs and then doing their home work They want to be the best in their peer group and want independence.They want to engage in all activities that help them stand out Peers, parents and advertising influence their choicesCustomer Focused StrategyThey give sterile items to their customers. Product quality lies at the center of the organization, perceived and checked by wellbeing and security measures and global quality guidelines like HACCP and SANAH, for quality. In the event that individuals have any issue they are most invited to approach them and they truly contemplate their proposals to serve their customers and getting their criticism will assist them with achieving their objective.
Pricing StrategyIn estimating, they need to keep in thought the costs of crude materials and bundling. Crude material cost is getting high, and they charge premium evaluating for giving great quality items, so some of the time their costs get high. They have needed to play around with costs, in a portion of the items they attempted to expand costs yet the PRICE ELASTICITY was not there.
Value Collusion-They needs to keep in account the opposition. Now and then, the contenders sit together and shape a cartel to control the cost in the business, by talking about the costs. For instance if three of the competitors are offering are Rs.2 and one is at Re.1, so the business will confront the less development in the classification. Beforehand they propelled STARGUM at Re.1 in Karachi, and then re-propelled at Rs.
2; it was a test advertising to see the impression of children; kids got a recognition that it has two flavors, and enormous in estimate so they stood to pay Rs. 2.Retailers are as yet lifting Re.1 gums, so they confront issues in expanding the costs.Marketing MixProduct:CandiesChewsMarshmallowsChocolates Promotion:Animated adsArrange different competition in schoolsDecorating school canteensPrice:Incentives for purchasing Bulk quantityAffordable by pocket money of kidsPlace:General StoresGifts shopsFINANCIAL STATEMENT AND HIGHLIGHTSThe Financial Plan outlines Candyland’s forecasted financial statements and the assumptions made when developing them.
The Company’s capital requirements, how the capital is to be used and our repayment plan is also illustrated here.The following financial statements and analysis have been forecasted over a six year period.2017 2016 2015 2014 2013 2012PROFIT AND LOSS ACCOUNT (Rs. In Millions) Sales-Gross 23,014 20,004 14,317 12,533 11,571 10,623Gross Profit 3,721 3,109 2,476 2,136 1,975 1,831Profit before tax 1,643 1,292 771 580 540 629Taxation Expanse 477 291 131 77 182 262Profit for the year 1,166 1,002 640 502 358 367BALANCE SHEET (Rs. In Millions) Share holders’ equity 6,272 5,999 3,975 3,253 2,790 2,409Capital reserves 1,412 1,879 688 593 623 579Inappropriate profit 4,198 3,482 2,782 2,155 1,661 1,325Current liabilities 7,159 8,407 6,230 5,541 4,714 5,135Total Inabilities 15,967 14,605 10,301 8,346 6,874 6,687Current assets 7,883 8,296 6,678 6,388 5,477 5,290Total assets 22,239 20,604 14,276 11,599 9,664 9,097RATIOS (Rs. In Millions) Earnings per share – basic & diluted (Rs.
) 18.27 15.70 12.
66 9.94 7.09 7.
27Breakup value (Rs .) 98.29 94.02 78.68 64.39 55.22 47.69Return on equity (%) 18.
59 16.70 16.09 15.44 12 .
84 15.24Price to earnings ratio 19.15 16.42 20.53 17.70 24.26 13.59Following the forecasted statements and analysis are “Notes to the Financial Statements”.
These Notes explain how we arrived at the account balances.SWOT ANALYISISStrengths:Export to worldwide market Catering different classes Sub-brands have high mindfulness Consistent qualityConstant innovationThe 10 rupee showcase, in spite of being a gradually creating market is harvesting great overall revenues for the organization. LEADER IN THE CATEGORY; for shelf spacing they are always invitedInvestment in extensive machineryWeaknesses:Facing through rivalry in BUBBLE GUM fragment Opportunities:Devaluation of local currency and increase in dollar, noteworthy potential in US market Rural territory extension Threats:Hilal Market LeaderPrice delicate industry Increasing sugar costsP Political situation posturing danger to the appropriation COMPETITORSDespite its prosperity Candyland experienced a thrill ride toward the beginning of the millennium. In 2000, the confectionary industry in Pakistan was liable to a sugar stun—sugar costs expanded from Rs.
21Acg to Rs. 27Acg within a year, influencing the cost of generation to shoot up in this decently value delicate market. The business endured all in all, yet Candyland was hit significantly harder as it was ease back to react to this test. The organization, which had been developing at a normal of 23 percent CAGR for the initial 10 years long periods of its reality, was abruptly looked with a solitary digit development rate, declining to under 5 percent by 2001. Meanwhile, competitors took full favorable position of Candyland inconveniences. Its significant adversary, HILAL Confectionaries, extended its piece of the overall industry by putting intensely in its leader image, Ding Dong Bubble Gum. Another competitor, Mayfair propelled Creamers, an inventive store confection, with broad promoting support. Creamers did amazingly well in the market.
Additionally, BP another competitor, made noteworthy advances by offering its Spacer Chew in the well-known milk and margarine enhance.Candyland endured a considerable measure in the time of 2002-2004 due to its non-creative approach yet now organization has gained from its past and now its driving trend-setter in its industry and trailblazer.SegmentationLevel of Competition Product Definition Illustrative Competitors Need/WantGeneric Sugar and Confectionary Products All Confectionary manufactured companies To satisfy immediate cravingsProduct type Chocolates Cadbury, HilalSweetProduct Variant Coated Jellies(e.g. Chili Milli) Mirch Masala by HilalSweet and tangy tasteINTERVIEWERSince eight years I have been serving this company. Regarding CandyLand we started our Business in 1988 and vision is to make candies for kids and target the audience.In the beginning we started Candyland office and company has 7 plants in CandyLand office and Bisconni, Snackcity and Hilton pharma ore engaged is Candyland.
The only person who can be succeeded must hove these qualities: Sincere, Focused, Loyal, Respectful and Passionate with work. It is a consistency port if any of your product do not succeed and do not give you the profit then do not hold up with this product you should move on.The technology I admire the most is “The implementing Exam”. The Challenges which Candyland has been facing Competition with FMCG Company because FMCG company is Progressing fastestMy achievements ore Training and Developing skills, Operations in employment services, give online services to employees. The thing which I like is dealing with the difficulties. The thing which I dislike to give up in difficult situation CONCLUSIONCandyland is a good example of a successful company that managed to maintain its business for more than 30 years. This is really rare for a confectionary industry to achieve until this stage but Candyland shows that they can do it without having any heir. Candyland Company shows that they are very innovative since there are more than 25 brands that had been produced to the markets.
This company also has developed their products for more than 40 countries worldwide. The Company has constantly achieved number of milestone expanded their production facilities decodes acres of land.Candyland “Chill Milli” is one of the most popular jellies produced by the Candyland Company. This jelly is the most popular Jelly in Pakistan since 1990.Their marketing strategies had made them reach a point where they already reach to stage two in economic scale (theory of production) but if they are not aware with their surroundings, they will fall and bankrupt.
Pride in delivering the best quality products and their brands strive to delight their consumers. Customers and consumers ore of the core of everything they do. Pioneers in jellies and hove lounched brands in technically difficult categories such as lollipops and marshmallows. And one of the most important things these products ore ISO 22000 Certified and HALAL Certified from SANHA.
The best consumer value proposition and ensure that their consumers receive the utmost satisfaction in every bite that they toke. As it has become the largest confectionery company in Pakistan but also the market leaders in seven out of the nine categories that we operate in.It was a wonderful and learning experience for us while working on this project. This project took us through the various phases of project development and gave us real insight into the world of business. The joy of working and the thrill involved while tackling the various problems and challenges gave us a feel of business industry. It was due to this project I came to know how professionally Business runs. We enjoyed each and every bit of work we had put into this project.
The project is further extendable.