Acknowledgement: Internship Report of Treet Corporation Limited
Acknowledgement: Internship Report of Treet Corporation Limited
Acknowledgement: Internship Report of Treet Corporation Limited
Acknowledgement
Countless thanks to ALLAH Almighty for giving me such extraordinary abilities and making me
privileged enough to take part in such activities and all respects and regards to Holy Prophet
Hazrat Muhammad (PBUH) for giving me the faith paving me on the right path with the
essence of faith in GOD.
I would like to thank my advisor Mr. Atta ur Rehman for his cooperation and help. He fully
supported me throughout my work. I express my heartiest gratitude to him. His cooperation
made this project a lot much easier.
Mr. Muhammad Saleem, General manager Sales & Marketing, Treet corporation Limited.
Bundle of thanks to my parents, who were and are very supportive and cooperative at every
time.
History
The history of the company dates back to pre-independence days, almost a century ago, when a
highly dynamic personality of Sir Syed Maratib Ali expanded his agri business into trading and
industrial partnerships. Soon after independence of Pakistan in 1947, the business activities
were further diversified into industrialized operations of soap, ghee and razor manufacturing
sectors.
The razor manufacturing operations started in 1954 with the brand name of Treet. Different
other blades were successfully added to the product mix with the passage of time. Treet is one
of the outstanding Pakistani companies, achieving its place as one of the best 25 quoted
industries on Karachi Stock Exchange. It is the only razor manufacturing company in Pakistan
catering to shaving needs of its consumers. Its brands are as old as history of Pakistan
dominating the market due to tight quality control measures being followed since long, which
were eventually translated into ISO-9002 certification. The credit goes to the founding
Chairman Syed Wajid Ali an entrepreneur, Philanthropist and a patriot for his unmatched
direction that led the growth of company. Today, Treet is very aggressive and competitive
under its young and dynamic team headed by Syed Shahid Ali,son of Syed Wajid Ali. He inherits
the drive to accept the challenges created due to changing environments and market
conditions. He has kept himself abreast of future trends, keeping the dynamism in the
company.
Vision Statement
To be an innovative leader in our business that benefit society. We will be differentiated from
our competitors by technology, quality, engineering, sales and marketing expertise, while
ensuring financial strength and sustainable growth of the company for the benefit of its
stakeholders.
Mission Statement
Our MISSION is, to satisfy and exceed the needs of our customers, providing our products and
services with only the best quality, adjusted to their needs and preferences and to create, value
for our stakeholders. In order to accomplish this, we will continue our emphasis on being the
industry's lowest cost producer that responds to customer need with value-added products and
services. We will strive to exceed customer expectations.
It is our belief that we can fulfill this mission through a unique combination of industry vision,
supply chain expertise and innovative technology.
Introduction
Treet Corporation Limited has more than 50 years experience in the manufacturing of all types
of Shaving blades.
Our expertise in blade technology has led us to understand the diverse needs of our customers,
which is why we have a range of shaving solutions to suit different ages and lifestyles. There are
more than 20 specifications in multiple series of products having been sold to number of areas
at home and abroad, and being highly appreciated.
The company has a perfect quality control and regulation system. Company has been confirmed
by the ISO 9001 Quality Control Standards.
The Ali family of Pakistan commenced its business activities in South East Asia about a century
ago under the dynamic leadership of Late Sir Syed Muratib Ali, a nationally respected an honored
pioneer. His unremitting efforts and devotion to the highest standard of integrity and honest dealings
contributed in no small measure to the success of his ventures in the highly competitive environment
of pre-independence days in subcontinent. It is a legacy that has been maintained to the present.
From 1947 onward, the family diversified from the main business of agriculture & trading into the
fledgling industries of soaps, vegetable oil and razor blades in 1954 & 1956. The enterprises were
consolidated in to a Public Limited Company, quoted on Pakistan Stock Exchange in 1959. Later,
in 1977, the razor blade and soap operations were managed under the rubric of new company, the
Treet Corporation, also a Public Limited Company, Quoted on the Stock Exchanges.
In 1984, Treet set up a second factory, the machinery and technology was imported from American
Safety Razor Company Staunton USA to manufacture super quality, double edge stainless steel
blades & bounded shaving system. In 1997 Treet obtained ISO-9002 Certification from BSI, UK.
The Manufacturing Operations of blades are located in Hyderabad and Lahore and that of Soaps in
Gujranwala and the marketing of all brands produced through these locations are managed from
marketing and sales offices situated in Lahore.
Treet's distribution network covers more than 350 cities in Pakistan, 35,000 retailers directly and
indirectly. Through the extensive distribution network Treet enjoys 75% Share of the Pakistan
domestic market'in double edge blades category and 60% share of exports of total razor blades
from Pakistan.
Treet Corporation Limited, the leading manufacturer of top quality shaving products for the past
45 years, received ISO-9002 certification in 1997 from BSI, U.K., one of the initial
recipients of certificate in Pakistan.
The company has one motto:
TOTALQUALITYMANAGEMENT
It is because of his vision and direction, the company has expanded operations, with total
assets of around 350 Million (June-December-2000) the local sales are 364 millions half year
ending December 2000). Treet is also exporting its brands to various countries in Far East,
Europe, South Africa etc, contributing a significant share of foreign exchange to the national
exchequer.
Treet employees 700 people with factories in Hyderabad and Lahore. Its renewed brands Treet
and Trig are market leaders in double edge blades category while in bonded shaving systems,
Swift-II and Trim-II XL enjoy handsome market share. Treet has one of the strongest sales
network in Pakistan covering 350 towns nationwide. Appreciation of Treet's Quality went across
the frontiers of Pakistan. This helped Treet in setting of higher targets and in pursuit of even
advanced challenges. Major customers include China, Korea, Germany, Italy, Uk, Spain, Poland,
and 20 other Countries. Exports are growing at a rapid pace and form 15% of the company's net
sales. Treet continues to expand its customer base in the export markets, and is looking for new
markets around the globe.
Company information
BOARD OF DIRECTORS
Name Designation
Syed Shahid Ali Chairman / Chief Executive Officer
Dr. Mrs. Niloufer Mehdi
External Auditors
KPMG Taseer Hadi & Co.
Chartered Accountants
Lahore
LEGAL ADVISORS
Salim & Baig, Advocates - Lahore
BANKERS
Allied Bank Limited Habib Bank Limited
Askari Bank Limited Hong Kong & Shanghai Banking Corporation
Limited
Bank Al-Habib Limited MCB Bank Limited
Bank Alfalah Limited My Bank Limited
Citi Bank N.A. National Bank of Pakistan
Crescent Commercial Bank Limited NIB Bank Limited
IGI Investment Bank Limited Standard Chartered Bank (Pakistan) Limited
JS Bank Limited United Bank Limited
JS Bank Limited --------------------------------
REGISTERED OFFICE
72-B, Kot Lakhpat Industrial Area, Lahore.
Phones: 042-5830881, 5156567 & 5122296
E-mail: [email protected]
Website: http\\www.treetonline.com
SHARE REGISTRAR
Scarlet I.T. Systems (Private) Limited
E-mail: [email protected]
First Treet Manufacturing Modaraba (Managed by Global Econo Trade (Private) Limited)
Principal Place of Business:
72-B, Kot Lakhpat Industrial Area, Lahore. Phones: 042-5830881, 5156567 & 5122296 Fax : 042-
5114127, 5215825
KARACHI OFFICE
17-Abdullah Haroon Road, Karachi. Phone: 021-5681576 Fax: 021-5681575
56 - Shahra-e-Quaid-e-Azam,
Lahore, Pakistan.
E-Mail: [email protected]
The products no matter produced in Hyderabad or in Lahore are controlled by global Econo
trade.
Global Econo trade consists of three major departments as shown in the figure.
Business process
Marketing and sales department
Local market
Marketing
The marketing department further consists of two sub-departments i.e.
Product development
Creative Art & design
Product development
This department stands responsible for the retention in the customers mind and
creating brand image in the market for better sales.
The creative and Art department in the global Econo trade plays a very important role as
all the packing covers are designed by this department.
The creative head with his team all ways try to make the product rappers and covering
materials look so attractive and eye catching that they easily grab the attention of the
customers.
Marketing hierarchy
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Sales
Sales department is the most important and considered department for the GET. Because GET
believes that without greater sales volume they can never be able to grab the maximum market
share. The sales strategy they are using at GET is the market penetration and retention
strategy, because they believe that once they create market for their product and it’s once and
for all. They all ways look forward in the sales.
GM sales is the national head and he is the authority who makes strategies for better
penetration and competitor counter strategies. Making the product available in the market and
countering the demand and supply issues, setting prices for the product and making product
available in the whole country is the responsibility of the sales department.
Sales hierarchy
: 1583 sectors
“Income received for goods and services over some given period of
time”
Treet operate its sales process through two types of sales methods
In this type company receives a demand order and in exchange gives Quotation against that demand
order. After the settlement of price and terms and conditions the deal is finalized.
The direct sales are limited and company is more directed toward its distributor sales network.
Distributor sales
All over country Treet has a chain of more than 350 distributors which are the main play makers for the
company.
In metro towns and cities with greater population the distribution is divided i.e. 2 or more distributors
are operating in one city. As the distribution is divided so as the area is also divided and a binding on
distributor is created i.e. not to sell the products out of its jurisdiction/ territory.
Selection of distributor
The selection of the distributor by the company is done on the basis of market experience and financial
strength. Company always prefers a distributor who is capable enough to represent on the behalf of
company.
A complete audit and surprise visits are done to evaluate and check the working of the distributor.
As company provides the stock to the distributor on payment so it becomes obvious that distributor has
to sell the stock to achieve its target as well as to get “ROI”
The company doesn’t leave the hand of distributor and provides a complete designed web of sales force.
This sales team is responsible for the sales. The responsibilities are in a flow from top to bottom staring
from G.M Sales & marketing to an order taker all are sales personals.
Target allocation
The company allots them targets for the sales to be achieved in a calendar year and specifically for a
month. These targets comes from top to bottom i.e. GM TO SR
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Target achievement
Target achievement always goes bottom to top i.e. town level to national level
Distribution of targets
The distribution of targets is done on the basis of area potential and population i.e. the
potential consumer rate and the population size is kept in eye while distributing the targets.
Distributors are bounded by the company to generate specific amount of sales as we know that
“Sales has no back gear, you have to move forward” if once in a year a distributor has
achieved a target of 50million then he is bound to generate same or even greater amount of
sales in a next calendar year because as we said that in sales you have to move forward. Same
is the case with the sales team every year company increases their target in addition to their
last year target most probably 6% to 7% annually.
SWOT Analysis
Strengths Weaknesses
Opportunities Threats
Market Analysis
2006/2007
2009/2010
2007/2008
17 million blades
86 million Rupees
Rs. 5.06 per razor
2009/2010
27 million blades
59% growth
149 million Rupees
73% growth
Rs. 5.52 per razor
9% increase
2006/2007
2,096 tons
171 million Rupees
2009/2010
5,000 tons
139% growth
671 million Rupees
292% growth
Marketing strategy
1: Retail coverage
2: Product in every competing price range
3: Improved product penetration
4: Price stability
5: Strong follow ups
6: Kept competition under pressure
Market segmentation
Target market
The target market of Treet is B class and C class. But Treet products cover almost every
age group and every segment of the market due their variety and improved quality. In double
edge category Treet has around 80% share it means it’s covering all the segments and classes,
in soap category Treet is targeting B class and C class as the major populated classes of Pakistan
are B class and C class, so it’s very much profitable for the company to penetrate in these
markets. In disposable razor category almost 50% of market is dominated by Treet products as
due its better quality all over country availability and less price disposable razors also mean to
target the B+ class and lower classes.
Market share
Product Market Size TCL Share
Competitor analysis
COMPETING BRANDS IN DOUBLE EDGE CATEGORY
TOTAL=60%
MARKETING MIX
1. Product
Treet Corporation has a very wide range of products i.e.
Soap
Blade
Disposable Razors
Bonded shaving systems
Auto mobile
Blade section
TRBC
Treet SILVER CP(11)
STAR PLUS
FALCON
TDS
Treet CLASSIC
TRIG REGULAR
TPS-10
SOAP SECTION
NOVA STD
NOVA MINI
SABA STD
SABA BATH
AKS SOAP STD
AKS SOAP BATH
BODY GUARD CARBOLIC
BODY GUARD PRO ACTIVE
LAUNDRY SOAP
Treet bike is newly launched in the market and is appreciated all over by the customers
as well as the traders.
Treet bike is only coming in one specification i.e. Treet 70cc bike
2. PRICE
Blades, Disposable razors & bonded shaving systems
SOAP
PROMOTION
Under the head of advertisement seven (6=7) types of media is used i.e.
1. TV
2. Press (Newspapers + Magazines)
3. Cinemas
4. Radio
5. Bill boards & road side hoardings
6. Sponsorships
7. Give aways
Advertisement methodology
GET uses a very effective technique for advertisement they have certain media advertising
agencies in contact, they utilize there expertise to advertise on the media they want to.
TV advertisement
For example for advertising on the TV they have Time & Space as their service providers. GET by
utilizing viewership rating specific to their target market class decide which TV channel is the
best to choose for advertisement and after deciding they convey it media agency then media
agency give them media plans according to Treet requirement. There are two types of on air
time i.e. prime time and off time. Prime time ads are costly and off time ads are considerably on
air at low price.
Depending upon maximum benefit through the media campaign Treet corporation choose the
time slots for the advertisement.
As In the case of TV advertisement GET utilizes the expertises of media agency same is the case
here, they have media agencies in contact that provide them services on demand. They
advertise in all famous dailies of and on. They also advertise in magazines like cutting edge,
weekly Hunnar , Pakistan sports, Syarrah digest , etc. Advertisement on radio is recently started
for the promotion of Treet bike in rural and urban areas of Khyber Pakhton Khaw and in Punjab.
Cinema advertisement is done with great anticipation around 60 to 70 cinema houses show
advertisement of Treet on daily bases.
Sponsorships
Acting as a socially active and responsible organization Treet has the policy to sponsor events
not only to advertise and grab a much higher place among people but also to participate in
social activities and support those activities with an objective. Entertainment events like
Concerts, sports events, dinners, dramas, branding seats and places in sozo water parks in
Lahore and murree.
POS material
Give away material
MMU’S
Nationwide launch
Media exploitation
POS material (point of sales material) is given to sales team so that they can display it on
the shops to grab more attention of the customer’s .i.e. stickers, tags etc
Give away materials are for creating brand loyalty among distributers retailers and
customers, Branded towels, calendars, wall clocks are given to create more value.
MMU’S (mobile merchandising units) are the topic of huge consideration and
organization spends a lot of money on this. MMU’S are vans branded with Treet skins
their main object is to visit and sale the product in those areas which are out of the
range of distributor.
Treet uses the services of B.P.S (Brand promotion services) for this sales supportive and
promotion activity.
The main objective is not to lose a single customer. The budget spent on these MMU’S is
around 2.5 to 3 million in a calendar year.
Nationwide launch
The biggest advantage Treet enjoys is their presences all over Pakistan and when ever
their product is launched it’s launched nationwide which creates more brand image and
loyalty, people enjoys same quality and product of Treet no matter the province or city
they live in.
Media exploitation
Services of media agencies are utilized to support sales and to promote the product all
around the country.
Print media ads, TV ads & cinema ads, are created to supports the sales activities.
Target market
Treet Corporation limited is serving mostly the middle class, lower middle class below.
Their products are designed and manufactured keeping in view the price sensitive target
market. And they always try to give more value to the customer in less expenditure with
state of art technology.
Export
Treet is exporting their high profile double edge shaving blades and bonded shaving
systems to more than 51 countries around the globe.
Institutional sales
In contrast with its sales all around the country in markets, Treet has other sales head to
operate from and that is selling products to welfare institutes. Institutes like ICRC are
the clients of Treet who regularly buy soap form Treet according to their needs.
My findings
Treet Corporation Limited is a Pakistan-based company. The Company is
engaged in the manufacture and sale of razors and razor blades, along with the sale of soaps.
The Company, together with its subsidiaries, operates through three segments: manufacture
and sale of blades; manufacture and sale of soaps, and manufacture and sale of packaging
material. Some of its subsidiaries include Global Econo Trade (Pvt) Limited, First Treet
Manufacturing Modaraba, TCL Labor Hire Company (Pvt) Limited, Treet Services (Private)
Limited and Treet Power Limited.
Pakistan economy came under immense pressures since the September 11, 2001 terrorist attacks
on United States of America and its aftermath and global concern for war against terrorism, which
led to attacks on Afghanistan. This inexorable situation acted as a whirlpool of economic difficulties,
by not only disrupting the trading activities, but also increasing the cost of international trade owing
to escalation in freight and war risk insurance charges. This disruption has caused an obvious decline
in exports and imports. Furthermore, the overall investment is also on the wane.
The suicidal attacks every now and then have made the business operation very difficult and
Due to these security threats businesses are ruined but by the Grace of Allah Almighty
Treet corporation Ltd, With his hard work management and loyal employees has never give up
and still they are heading towards a success full Business calendar year.
Benefits to the employees
All the Treet Corporation is also like other organizations that are profit oriented but never the
less Treet Corporation has a policy of not leaving the hands of people who are working for
them. And they consider them as their family and that is the main reason why when somebody
joins Treet Corporation it become obvious that he/she will not leave the organization because it
has so much to give to their loyal employees. Their management doesn’t like to only fill their
pocket by wealth but they have the courage to distribute the wealth among bodies who work
for them or with them. That is the main reason why Allah Almighty has given the huge
acceptance among the people of Pakistan and Treet group is one of the largest business groups
of Pakistan belonging to business pioneers family of Pakistan.
Market analysis
During my visits to the market I realized that Treet has more than 80% presence in the market
that means company has huge acceptance. No matter the area is A class or b class Treet
products are present in the shops and traders are willing to sell because they receive good
amount o each sale.
People are more concern now days with the quality and price. Due to the brands like LUX, SAFE
GUARD, and many others company has tough competition but Treet products are equally liked
and soled among these giants.
Treet has a policy of attracting customers and facilitating them by launching new products off
and on and improving their products for customer facilitation. They have the policy of finding
new markets and making more and more potential consumers of the product.
Being loyal to the country and rational organization Treet never dump their products in the
markets. They stand responsible for each of the single piece of their product. Because they
believe that even a single piece of their product represents their organization.
My views
During a span of 6 weeks I have learned allot form Treet corporation and I am as a business
student mark this organization as a highly rational and the organization with a great
opportunity to prosper more and more day by day.
Neither bribing, nor any other disrespect full activity is practiced in this organization. Everything
is according to specific plan as a top nation organization must have.
They have the policy of customer satisfaction and making traders happy by given them benefits.
They are always concerned with the welfare of all.
Being a top national organization Treet corporation has maintained its standards by never
letting down its share holders and the people concerned with it
I am very great full to Allah Almighty who has given me the opportunity to work in the
organization like Treet Corporation.
Regards
Muhammad Mobeen
(Management trainee)
Presented by
Muhammad Mobeen
Management interne
Dated
August 23, 2010