Members

Tahir Hussain BB-10-71 Naveed Ahmad BB-10-75 M.Mudasar Habib BB-10-81 Muhammad Imran BB-10-9079

Lefevre UtileLU

A biscuit manufacturing company of France

History

Established in 1846 Manufacturing Brand of French Biscuits In 1986 it was sold to DANONE For more than two decades CBL is engaged in the manufacturing and

marketing of the brand LU. The brand is now part of Mondelez International.

Competitors

Product Line(LU)

Product Line(PF & bis.)

PF BISCUITS Super Gluco Click Rio Peanut (Pista) Peanut (Pick) SNAKES Cheers

BISCONNICocomoCruxFlo Rite

Market Share

30%

16%

40%

14% others

Turnover In 1986 it was 20 millions In 2003 it was 2 billons Sales turnover of about Rs 10 billion while its sales volume stands around 69,000 tons.  CAGR of 23.7% Sales turnover of EBM was 16 billion and sales volume was 100,000 in 2013.

Segmentation The market has been segmented primarily into adults and kids

with further segmentations in terms of taste profiles/Lifestyles and hence:

Soft & Sweet Plain Sooper, Bakeri, Gala, Bravo...

Cream Filling Prince, Rio, Cocomo, Jam Hearts

Salty Snacks TUC, Saltish

Indulgent/Sweet Candi, Chocolate Chip

Plain Glucose Munna, Gluco, Tiger

Ingredient Based Party, Zeera Plus

Healthy Wheat Slices, Wheatable

Rules & Issues Raw material to finish product every critical processing is monitored by the

QC team.

According to the OHSAS 18001 , they have care for their employees.

All their material process and waste are environment friendly.(ISO 14001) Low product capacity of certain product.

Distribution Channels

Available Channels

There is no direct channel in the biscuit industry.

All the biscuit companies are using indirect channel.

Available Channels

Company Warehouses Distributors

Wholesalers

Available Channels

Company Warehouses Distributors

Retailers

LU Distribution Channel

Company Warehouses Distributors

Wholesalers Retailers

Distributors in Multan

Distributors

Galamandi Shams Abad

Other Information

Warehouse situated in Multan at Naagsha. Warehouse covering areas are Multan , Sahiwal and

Bahawalpur.

Setting up Distribution System

MNTI AGENCIES

INFRASTRUCTURE

At Dera Ada Near Jam-e-Masjid Qadariya Total area is 4500 sq ft , it is divided in to two parts 1300 sq

ft for office and 3200 sq ft for Godown. Rented

Other information

Salary 30% by distributor and 70% by the company to DSR. Service model : order booking Stock norms : 7 days Distributors: 11% Retailers : 14% Wholesalers: 16%

Number of Shops

Wholesalers 50

Stores 700

Bakeries 200

Large Groceries 100

Shops Per RickshawWholesalers 10

Stores 35

Bakeries 20

Large Groceries 10

Service Level

Wholesalers Twice Stores onceBakeries onceLarge Groceries Twice

Infrastructure: Number of Rickshaw

NO. Of rickshaw

Wholesalers 50*2=100100 /6 =16.6617/10=1.7

2

Stores 700*1=700700/6=116.66117/35=3.33

3

Bakeries 200*1=200200/6= 33.3333/20=1.66

2

Large Groceries 100*2=200200/6=33.3333/10=3.33

3

Infrastructure channel wise Channels Sales man , order booker ,

rickshaw etcWholesalers 2Stores 3Bakeries 2Large Groceries 3total 10

Infrastructure – human resourceManagers 1DSR 10Sales man 10Cashier 1

Store keeper 1guard 2Total 25

Human resource cost number salary Total cost(Rs.)

Manager 1 45,000 45,000

DSR 10 30% of 10,000 is3,000*10=30,000

30,000

Sales man 10 10,000*10 100,000

Cashier 1 15,000 15,000

Store keeper 1 10,000 10,000

Guard 2 10,000 20,000

total 25 220,000

Other Expenditure Warehouse rent 1 35,000 35,000

Rickshaws 10 22,700*10=227,000

227,000

Total cost 262,000

Investmentinvestment Value

Stock 10,000,000/26 =384615.38*7 = 2692307

2.7 million

Expiries and damages Company gives 12%* of sales to the distributor..04 % of 10 million is 4,000

324,000

INVESTMENTINVESTMENT VALUE

Stock 2.7 million

Fix assets .55 million

Cash & Bank Balance 2.5 million

Security deposits .2 million

Expires .324 million

Total 6.274 million

Sales MarginProduct sales margin Gross Profit

All products have same margin

10,000,000 11% 10,000,000*.11=1,100,000

Distribution and selling expenses Salaries & wages 220,000

Warehouse rent 35,000

Rickshaw's rent 227,000

Utilities 20,000

Total 502,000

Profit & loss statement (MONTHLY)

Net Sales 10,000,000

Cost of goods sold (8,900,000)

Gross profit 1,100,000

Distribution and selling expenses (502,000)

Administrative Expenses (60,000)

Profit before Interest & operating income/expenses

538,000

Other operating expenses (15,000)

Earning before Interest and Taxation 523,000

Taxation (156,900)

Profit (loss) After Taxation 366,100

ROI

ROI (Net profit / total investment)*100

Monthly profit 366,100

Annual profit 366,100*12 =4,393,200

ROI PER YEAR (4,393,200/6,274,000)*100

ROIC 70.00%