Name:Gulrukh Hina

Submitted To: Brukflied Rice MBA-2014

1

Understanding of Rice Industry
Global Scenario of Rice Industry
Introduction
Rice is the most extensively distributed dietary staple worldwide. It contributes larger percentage of
global farm land that 160 million hectares of land each year, just after corn which is mostly consumed as
animal feed at about 175 million hectares, and wheat farmed on 220 million hectares. With the highest
extraction rate in comparison to other cereal (fraction of each grain utilized as food), it produces more
energy per hectares than any other cereal.
Considering rice entire food protein production hectare is secondly only to wheat. Although, superior
quality of rice yield per hectare of useable protein is higher for rice than for wheat.
Commonly, each hectare of rice farmed yields about 4.4 tons of un-milled rice. Figures can vary as it
entirely depends over local farming methods, climate, and seeds. In recent years, global un-milled rice
manufacturing has been about 700 million tons, corresponding to about 470 million tones the rice
milled.
As each year 470 million tons of milled rice produced, only 8% (38 million tons) of global production
traded each year. (Oryza)






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Rice Trade and Production
Mostly rice produced and consumed in Asia. It is not only used in variety of ways to make food but also
an ingredient in medicines and cosmetics and has a role in crafts and religious ceremonies.

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As per USDA 2013-2014 Crop year, the major exporters of rice are India, Vietnam, Thailand and Pakistan while one of the major importers is
China after Other.
Rice Quality Grading System
There are quality standards of Rice and it varies from rice producing nation to nation. In general, rice is inspected to measure a particular grain
samples grading standard, which will determine its price on the market price. Rice quality examination factors could be on the basis of rice grain
size, chalkiness, color, odor, moisture, milling yields, integrity, milling yield, environmental conditions (temperature, humidity, rainfall) and
management practices such as use of healthy seed; optimum sowing time; balanced and timely application of fertilizers; proper harvest and
post-harvest operations, use of modern milling and polishing machinery etc.
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Rice Industry of Pakistan
Being an agro-based economy, Pakistan has natural plenty of all agricultural products that includes food
items. According to Rice Exporters Association of Pakistan (REAP), rice is the third largest crop after
wheat and cotton.
Moreover, Pakistan is the worlds fourth largest producer of rice, after China, India and Indonesia. The
country is responsible for 30% of the worlds paddy (un-milled) rice output. Most of these crops are
from Sindh and Punjab region with millions of farmers depending over rice cultivation as their major
source of employment. Rice farming in Pakistan is over 10% of the total cropped area. It is the major
cash crop and one of the major export items. It accounts for 6.7% in value added in agriculture and 1.6%
in GDP.
General Process of Rice Production
- Rice Plantation: Rice plantation takes place in unique climatic conditions. The first prerequisite
is the torrential rains that mask the land under a layer of water. After that a long period of
scorching dry climatic conditions are required. These conditions if present help grow the perfect
quality of rice which is then harvested by hand with delicate care and then aged to perfection
and finally processed.
- Rice Processing: Rice processing takes place after the rice arrives from the fields. The rice is in
shape of paddy on arrival and it is first dehusked by a rubber roll sheller to produce brown rice.
During this process the outer tough protective coating is removed. This process has no effect on
the nutritional composition of rice within the husk. After this, the brown rice is milled further by
removing the outer bran layers which are darker in color but they are rich in nutrients such as B
vitamins. This process results in production of white rice which is commonly used.
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Milling Process
1. Pre cleaner: Cleaning the rice from any foreign materials
2. Destoner: Separating any stones from the rice, which may be picked up in the rice fields
3. Paddy Separator: To separate all Paddy from the white-hulled rice grains
4. Width Graders: To separate all different widths of the rice grains. Differing from both basmati and
non-basmati varieties.
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5. Single / Double Polish: Rice cleaner for making it look brighter and free from dust.
6. Silky Polish: Polish of rice by using a touch of water giving the rice grains a silky/pearl look.
7. Rotary Shifter: To separate all broken grains from the milled/re-processed rices.
8. Length Graders: To differentiate/separate all different lengths of the rice grains. Especially used to
grade Basmati varieties.
9. Color Sorting: All discolored grains are separated from the white rice grains to give the rice an
excellent retail marketable look.
10. Packing: Packing is done on automatic packing machines, enabling accurate weight and automatic
seal of quality before dispatching through world renowned shipping lines.

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Rice as a Commodity
Varieties of Rice Grown in Pakistan
There are over 4000 varieties of rice that grows each year, most famous varieties of Basmati and Non-
Basmati Rice in Pakistan are
Pakistani Basmati Rice
- Super Kernel Basmati
- PK-385 Basmati
- PK-198 or D98 Basmati
Pakistani Non-Basmati Rice
- Long Grain Rice PK-386
- Long Grain IRRI-9
- Long Grain Rice IRRI-6
Following are the popular export varieties.
Basmati
- Basmati 2000
- Basmati 385
- Basmat198
- Super Basmati
- Basmati 370
- Kernal
- Shaheen (Basmati)

Rice Other Varieties
- IRRI-6
- IRRI-9
- PG(IRRI)
- KS 282
- DR
- Japonica

(Source: www.reap.com.pk)
1) Cargo Rice: (BROWN RICE, HUSKED RICE)
means rice obtained from paddy of which only
the husk has been removed. This includes its
whole grain, head rice, big broken, broken, and
small broken.

2) Plain or White Rice: means rice obtained from
paddy which has been husked and milled while
B) GRAIN CLASSIFICATION: means the
proportional mixture of rice of difference classes
to form a grade
Rice Kernal is divided into four classes namely:
1) Extra Long Grain: shall be the head rice/whole
grain having the average grain length of 6.90 mm
or more.
2) Long Grain: shall be the head rice/whole grain
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by removing its bran layers. This includes its
whole grain, head rice, big broken, broken, and
small broken.

3) Parboiled Rice: may be husked or milled rice
processed from paddy or husked rice that has
been soaked in water and subjected to a heat
treatment so that the starch is fully gelatinized,
followed by a drying process.
having the average grain length of more than 6.0
mm but not more than 6.90 mm.
3) Medium Grain: shall be the head rice/whole
grain having the average grain length of more
than 5.0 mm but not more than 5.9 mm.
4) Short Grain: shall be the head rice/whole grain
having the average grain length of 5.00 mm or
less.
C) YELLOW KERNEL: means the kernel of which
25% or more of the surface area has turned
yellow in color.
D) CHALKY KERNEL: means the kernel of which
50% or more of the surface area is white like the
color of chalk.

E) GREEN RICE: means the kernel of green color in
Cargo (Brown) rice which when broken is also
green in color from inside or in the endosperm.
F) BROKEN RICE: Broken of size length of grain
and above shall count as head rice.
(Source: www.reap.com.pk)



Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
9

Rice Commodity Trading in Pakistan
Rice Consumption in Pakistan (Demand)
Pakistan is not only a major exporter but also a major consumer in the world. Almost every household of
Pakistan has been using rice as sidelines or main dish. Following is the consumption per year trend
graph.

(Source: http://www.indexmundi.com/agriculture)
Increasing trend shows that there is still lot of potential in the market. Through proper marketing tools
we can penetrate in the market.
Sindh Commodity Prices Punjab Commodity Prices
Date Stations Commodities
Sindh
Min.
Sindh
Max.
Date Stations Commodities
Punjab
Min.
Punjab
Max.
29-Apr-
14
Ghotki,
Sindh
Rice Basmati 1800
(40kg.)
1900
(40kg.)
29-Apr-
14
Faisalabad,
Punjab
Rice Basmati 2100
(40kg.)
2200
(40kg.)
29-Apr-
14
Ghotki,
Sindh
Rice Irri 800
(40kg.)
900
(40kg.)
29-Apr-
14
Faisalabad,
Punjab
Rice Irri 950
(40kg.)
1000
(40kg.)
Source: http://par.com.pk/pakistan-commodity-rates/

Market
Year
Domestic
Consumption
Unit of
Measure
Growth
Rate
2005 1896
(1000
MT)
-
25.65%
2006 2207
(1000
MT) 16.40%
2007 2718
(1000
MT) 23.15%
2008 3490
(1000
MT) 28.40%
2009 2916
(1000
MT)
-
16.45%
2010 2447
(1000
MT)
-
16.08%
2011 2548
(1000
MT) 4.13%
2012 2295
(1000
MT) -9.93%
2013 2600
(1000
MT) 13.29%
0
1000
2000
3000
4000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Pakistan Milled Rice Domestic Consumption by
Year (Quantity wise)
Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
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Value Chain Analysis
A general value chain of Rice is given below. Reverse Logistics is an important element of supply chain.
Corporate or Food Services usually purchase bulk quantities while individual consumer buys relatively
less quantity. Return claims usually happens at corporate or food service side due to large quantities.
Rice as a commodity competes over price so it is essential for Brukflied to make value chain more
efficient instead of responsive.

Cycle View of Supply Chain

There are five stages in a supply chain (Supplier Manufacturer Distributor Retailer Customer) and four
supply chain process cycles (customer order, replenishment, manufacturing, procurement cycle).

Customer Retailer Distributor Manufacturer Farmer
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Proposed Management Structure

Brukflied Rice (Pakistan) Limited
Admin / Controller
Information
Systems
Operations
Trade Mkting
(Sales)
Finance
Marketing
Marketing Planning
Production order
planning
Rice Crops B2B Buyers B2C Clients/ Retail
North
Region
Centeral Region
South Region
Marketing Services
ATL/BTL
Execution
Social Media
Customer Relation
Claim
/queriesHandling
Retailer and Supplier Development
(Key Partners) Development
Human Resource Compliance
Business
Development
Corporate Affairs &
LAW
CEO
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Proposed Marketing Strategies
SWOT Analysis of Rice Industry
Strengths
- As rice is a staple food for worldwide population, it creates long term demand for the products
that are associated with rice or rice as a main dish. High demand will increase the price of the
commodity over time. This is strength for the commodity as suppliers need to be quickly and
accurately compensated for demand of the product.
- There are so many rice suppliers internationally that are producing in large quantities but the
prices are high as compare to Pakistani suppliers so there is also a potential to compete it on
price as well.
- Reasonable road infrastructure and communications
- Availability of few rice research centers within Pakistan
- Easily availability of labors at Cost effective rates
- Better water supply in rice growing region of the province
- Reasonable network of banks available within Pakistan
Weakness
- Electricity failures affect efficiency and performance.
- High transportation cost up to Port Qasim to supply the product for export markets /
- Railway Stations are in active
- Outdated Research institutes need new equipments and resources.
- Lack of skilled labors / No vocational institutes imparting training for machine operation
- / boiler handling
- Low level of modernization and up gradation technology
- Unawareness about export markets trend limited interaction between growers and research
centers.
- Limited level of capacity as association of growers as well processors have not teamed of
professionals.
- Growers have low level of influence in fixing of paddy support price.
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- Rice processors have also limited say in policy initiatives.
- Non availability of quality paddy.
- Ignorance in Trade Policy to support direct exporters.
- No testing lab available in Pakistan.
Opportunities
- Banned on Non Basmati Rice export from some world player.
- Demands are growing & Prices are stable in international market
- Huge potential for Parboiled rice as some major player are not active.
- Possible production of organic Rice
Threats
- World price volatility
- EU legislation and regulations on health, environment, safety, labeling.
- Interrupted electric supply / higher oil/ gas prices
- Law & order situation with in the cluster.
- Delay in supply of fertilizers
Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
14

Marketing Strategy of Rice Product
Following is the marketing strategy elements that we have to follow in order to capture our target
market on national as well as international level.


Social Media
As social media is gaining popularity because of high reach and cost efficiency, it is recommended that
company should market product through this medium. Facebook pages like SWOT Guide, Instagram and
Twitter are becoming part of daily routine so through this we can generate positive word of mouth.
Brukflied rice is already established but they need to add sufficient data in order to answer common
queries of customer especially foreign buyers.
Packaging
Packaging is one the most aspects of marketing strategy as this differentiates your product from
competitors product. Packaging should be user friendly and attractive.
Corporate Social Responsibility (CSR)
CSR activities will facilitate in earning social capital for Brukflied Rice. Like Starbucks is educating coffee
growers for their CSR activity, we can also educate, develop and train farmers. This will help in
Social Media
Public Relation
CSR
PACKAGING
ADVERTISING
Sales
Promotion
MARKETING
STRATEGY FOR
RICE PRODUCT
Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
15

improving society and quality of work. It will strengthen relationship with farmers and build positive
image in corporate world as well as individual consumer.
Other Factors will be covered in following section of Marketing Mix
Target Market:
For females aged 20-45 looking for healthy standard of life for their families at affordable prices,
Brukflied Rice is internationally recognized brand that promises you high quality and healthy diet. This
is also its USP, that it delivers multiple benefits at a cost effective price.
This target market is SEC A and uses branded rice. This segment is mainly catered by FALAK rice and
foreign Brands. The following are its attributes:
Brand Loyalty in this segment account to 35%
Consumers do not switch to other brands due to strong positioning
Consumers are quality conscious
Health conscious people
Consumers are willing to pay a high price for a product if it is credible.
Marketing Mix:
Product:
We are considering this marketing mix for both Basmati and Non-Basmati Rice. Rice is of premium
quality as Brukflied rice is associated with international company through joint venture. Packaged
Product depicts high quality and ensures healthy diet.
Price:
As a general observation, we can say that the consumers are ready to switch if a better product comes
to market which is priced below branded rice. In this case we must compete with other premium brands
on the basis of price point. Depending on distributor, we consider margins of 4% and 8% in pricing.
Promotion:
A one month sponsorship campaign would be run on GEO TVs morning show. This would help us in
getting awareness for the product. Two week product placement in Chef Zakirs episode will be done to
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reinforce the awareness plan. Advertisements would be run on both GEO TV and ARY for 10 seconds
only for a month with complete message to increase frequency watched. Radio advertisement would be
done on FM 89 and FM 91 for 30 seconds each and 15 slots on each channel. Banners and hoardings
would be done in Clifton and Defence for one month that would help in keeping the product in the
consumer eyes. Also participation in Dawn-lifestyle and Apna Karachi expo would be done to get better
consumer engagement and awareness.
Mall activation campaign would focus on Millennium mall in Gulshan and Forum in Clifton. Both of these
malls would be targeted for weekend traffic for a total of fourteen weekends. This would help the
product in getting maximum traffic for awareness. Two dedicated staff members would setup a kiosk in
these malls and tell people about the product and its benefits for health.
Store intercept activities would focus on Dolmen Mall(Clifton), Ocean Mall, Imtiaz (KPT and
Bahadurabad), Naheed (Bahadurabad) and Chase (Seaview and Bahadurabad). All of these stores would
be targeted for one month awareness campaign along with free sampling. Dedicated staff would be
present here that would setup a kiosk and make Chinese rice for taste trial. Banners and store hoardings
would also be place and consumers would be handed out informational pamphlets.
Place:
The product would be introduced in major IMT (International modern trade) stores such as Chase,
Imtiaz, Naheed, Dolmen Mall and Ocean Mall. Those branches of these stores which are in Clifton,
Defence, Gulshan-e-Iqbal and Bahadurabad will be targeted. The marketing efforts and sales
coordination required in managing distribution at retail level will be very difficult and expensive.





Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
17

Marketing Budget
Marketing Budget
Cost ATL Activities
One month sponsorship campaign morning show on GEO 1600000
Commercial Production advertisement 6000000
Two weeks Chef Zakir episodes (100000 per episode) 600000
Advertisement on Geo and ARY 4500000
Radio on FM89 and FM91 150000
Banner and hoardings (Clifton and Defence) 1500000
BTL Activities
Mall Activation
Millennium Mall (2 staff each 18000 per month, rent 500 per day) 14 days 43000
Forum (2 staff each 18000 per month, Rent 900 per day) 14 days 48600
Store Intercept Activities with Sampling
Dolmen Mall (40,000 per day, 18000 for each 2 staff) 120000
Ocean Mall (15,000 per day, 18000 for each 2 staff) 500000
Imtiaz-KPT (300 per day + 18000 monthly salary of staff) 27000
Imtiaz-Bahadurabad 60000
Naheed-Bahadurabad 60000
Chase-Seaview 60000
Chase-Bahadurabad 60000
Expo Participation
Dawn Lifestyle (3 days) 300000
KCCI-Apna Karachi (3 days) 300000
Total Amount 15928600


Name:Gulrukh Hina
Submitted To: Brukflied Rice MBA-2014
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Locations for Billboards




















Size : 60ftx20ft Location : Shafiq Mor
Size : 45ft x 15ft Location : KPT Flyover
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Size : 45ftx15ft Location : Site Area












Size : 60ftx20ft Location : Sohrab Goth
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Size : 60ftx20ft Location : Shaheen Complex














Size : 20ftx10ft Location : Keemari R/A