Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Ms. Sumaila
Firstly we would thank Allah for giving us the opportunity and the resources to be able
to do something productive with our lives. Without His blessings we would not have
been able to come as far as we have.
Then our sincere thanks to Mr. Haroon Hafeez for helping us throughout this report. His
guidelines have been very useful for us in preparing this report. He helped us find new
ways of being innovative and creative. This report would not have been possible without
his cooperation and continuous direction.
We would also like to thank Mr. Farrukh, Regional Sales Officer at ENGRO Foods who
spare sometime for us so that we could conduct the interviews with him. It is true that
his responses in the interview have been very helpful.
Last but not the least we would like to thank our families for their incessant support and
approval.
Abstract
This report is about the marketing of Olper’s from the time when ENGRO foods came up
with the idea of adding a new product line to their already well established and long set
of product lines to the point that they are still heavily promoting their product. We start
by giving a brief history about Olper’s and how it came into existence. We talk about the
corporate structure and organizational hierarchy of ENGRO Fertilizers, its mission
statement and the vision. We move further with its goals that it has thought about for
Olper’s and eventually the type of organizational culture of the organization.
We discuss the SWOT analysis in which we talk about the strengths, weaknesses,
opportunities, and threats the organization is facing since its product was launched.
Then the PEST analysis is generally about how the external factors affect the growth and
stability of the product. We move further to talk about a variety of marketing strategies
employed at different stages of the product life cycle, that is promoting the product and
making consumers aware of Olper’s, using the 4 P’s to the best of their abilities.
The report also confers about the role brand equity played in increasing the sales for
Olper’s. Firstly, there are the various ways employed by the brand managers to build
and measure brand equity and once the customers start to accept it then how they have
managed the brand equity of Olper’s.
But perhaps this isn’t surprising after all. Pakistan, according to recent statistics, is the
third largest milk producing country in the world (32 billion liters per year from 50
million animals, with urban consumption at nearly seven billion liters). However, despite
this high ranking, packaged milk, even according to the most optimistic estimates, has a
mere four percent penetration. No wonder then that processed milk companies (PLMCs)
have been rather aggressive in their advertising and marketing endeavours in an
attempt to increase the penetration.
Industry experts believe that the current economic turnaround has contributed to the
growth in the PLM sector, resulting in increased consumer purchasing power. Another
reason for growth is a growing awareness pertaining to health and hygiene; this factor,
coupled with increasing dissatisfaction with loose milk, has also contributed to growth in
this sector.
The least important one, perhaps, is tradition. Milk, even amongst the most urbanised
consumers, is synonymous with the early arrival of the doodhwala (milkman) at their
home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression
that the milk is fresh, natural and straight from the cow. And it is this perception that
only loose milk is fresh, and therefore healthy and preservative-free, that has to be
overcome, if increased penetration is to occur at a substantial rate.
Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab,
because most dairy farms are based there, loose milk is cheap at approximately Rs 24
per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh,
however, the price differential between loose (Rs 28) and processed milk (Rs 38) is only
Rs 10.
Though hurdles such as consumer perceptions and price differentials have still to be
overcome, the processed liquid milk market looks set to grow. There is a whole world
out there to be converted, and it is a huge opportunity for PLMCs. If the economy
remains stable for the next five years, penetration will increase at an amazing rate.
Engro Foods’ History
Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification
process at the Engro Group. The plant located at Sukkur on 23 acre land, has the raw
milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000
liters per day. The plant has been established at a cost of Rs. 1 billion which provides
direct employment to 750 people.
Engro Foods has entered the Food business through milk processing and sale with the
company’s vision to pursue growth opportunities based on country fundamentals and
own strength. It also positions the company to leverage its corporate social
responsibility initiatives and work closely with rural communities to promote integrated
farming and livestock development. This effort is expected to play a pivotal role in
poverty alleviation and improving livelihoods of the poor in the milk collection areas.
Vision
"Our vision is to become a fast expanding mega foods company. To achieve our vision,
the company will initially focus on dairy by investing a substantial amount in plant, milk
collection capability and marketing. We are making concrete efforts to expand in and
beyond Pakistan; through strategic international alliances, to eventually become
global."
Core Values
1. Leadership
2. Innovation
3. Diversity and International focus
4. Quality and continuous Improvement
5. Candid and open communications
6. Individual growth and development
7. Enthusiastic pursuit of profit
8. Ethics and integrity
9. Safety, Health and Environment
10.
Departments
1. Administration
Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job
of the Administration department. From legal matters to general day-to-day operations
of the office, the Administration department ensures that all affairs run smoothly.
3. Human Resource
The Human Resource department at Engro Foods (Pvt.) Limited spearheads the
recruitment process to ensure that the finest human resource is taken on board at
Engro Foods. Resumes of candidates are carefully filed and documented for current or
future reference. The department, besides carrying out succession planning, maintains
and implements HR policies pertaining to employment, retention and superannuation.
Assessing training needs of employees and ensuring adequate training is also carried out
by the professional HR team at Engro Foods.
4. Marketing
Consisting of leading marketing professionals of the industry, who are graduates of top
business schools of Pakistan, the Marketing Department ensures that from product
need identification to product development, launch and post-launch, all strategic
decisions are made based on authentic information and research. Identifying the target
markets, effectively communicating to them and building the image of the brands as
well as the Companies, is the job of the professionals running the marketing at Engro
Foods.
5. Milk Procurement
As all of our food products are milk based, the entire Milk Procurement department
plays a critical role in defining the quality of the end product that reaches our
customers. Ensuring regular collection of fresh and pure milk right from the farmer to
the factory and ascertaining the freshness of milk all across the milk procurement
process, is the responsibility of Milk Procurement department, consisting of food
technologists working at the collection centers and veterinary doctors providing service
to the farmers.
6. MIS
The MIS department at Engro Foods ensures that all automation is running error-free at
all times. Regularly modifying and updating the Company's accounting software is also
the MIS team's responsibility.
7. Production
Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art
plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk
per day, making it one of the largest in the country. Professionally qualified human
resource efficiently works night and day to maintain highest hygiene standards.
8. Quality Assurance
Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this
department ensure that highest quality parameters are adhered to through all steps of
production and that the products reach the consumers as per promise.
Marketing research is an important step when a new product is to be launched into the
market. There are many risks associated with that new product and especially when a
company decides to diversify into a completely new market that it was not previously
catering to. Thus in order to reduce the magnitude of the risks and to be successful,
large organizations with a research and development department conducts the
marketing research. Even those organizations that do not have a R&D department can
conduct marketing research through other companies that are providing the facility of
marketing research.
One such company is A.C Nielson that carried out the marketing research for ENGRO
foods when the idea of diversifying into a new market was introduced. Marketing
research is the systematic design, collection, analysis and reporting of data to the
relevant parties. ENGRO wanted to setup a new fertilization plant but due to certain
constraints from the government wasn’t able to do so. Therefore, the organization
decided to move into a new market. They came up with several options including
telecommunications and power plant but they found out that the food industry held the
greatest promise. It was an exploratory research that is the main goal was to shed light
on the real nature of the problem in this case, diversification into a new market, and to
select possible new solutions and ideas such as the food industry. They also went
though the list of at least 1,200 names before they decided to introduce Olper’s. Olper’s
is promoted as the milk for all-purposes. The reason for this is that while conducting
research, they found out that people want milk that could be used for all purposes such
as drinking, tea whiteners etc.
Once the brand was introduced the organization wanted to add more product lines to it.
Therefore they conducted another marketing research to find out the success of Olper’s.
The researchers started off with secondary data that was available. They tried to
uncover the level of complexity involved in such a decision and the magnitude of
success. But that wasn’t enough so they started to collect primary data through the use
of different techniques. The first started with survey research to understand the
people’s beliefs, preferences and core needs that can be satisfied by introducing
additional products. The researchers also conducted observational research to observe
the people in different settings. They used it to find out which brand the people really
bought, where did they take more time in purchase process and where did they look
when they were shopping for grocery. This helped them to see the shelf-space that can
be used. They used the method of shadowing that is they observed people while using
the product. They also conducted unfocused groups where they interviewed a diverse
set of people to explore ideas about the brand and what more they want in the food
sector to be available to people.
Once all the information has been collected, it is further analyzed to extract findings
from the data. The researchers used all types of statistical methods such as frequency
distribution to now the number of people buying the brand, average and measures of
dispersions for major variables. They also applied some decision models for additional
findings.
After the analysis of data researchers present the findings to the decision makers who
pass the final verdict. Due to the positive responses of consumers, the decision makers
decided to go ahead with the idea of introducing more product lines to the food Olper’s
brand.
It can be said that successful marketing research helps the marketers to understand the
costumers’ needs that are still unfulfilled. The two new products of Olper’s in the
market are Olwell diet milk and Olper’s cream. The organization has further plans to
expand more in this sector and introduce more products related to milk.
It is difficult for any one company to engage in mass production, mass distribution and
mass promotion for its product. The complexities arise from the proliferation of
advertising and distribution channels and the high costs associated with reaching a mass
audience. Therefore, companies segment the market so that they can target the group
of customers who share similar needs and wants.
The milk sector shows a market that has homogeneous preferences that is the
consumers have similar preferences. They want milk to be white, carefully processed,
and good for health and bones. Keeping these things in mind Olper’s market has been
segmented. The marketers at Olper’s have had a number of options available to them
when segmenting the market for their products. So far company has introduced three
new products: Olper’s milk, Olwell diet milk and Olper’s cream.
Demographic segmentation
Olper’s products are not bounded to any particular age, gender or lifecycle stage. The
brand is meant for all the users in higher upper or middle class families. Even though the
brand calls for a small percentage of an individual’s income but lower class wouldn’t
want to buy the brand maybe because they are price sensitive or because they believe
lose milk is better than processed milk and has all the nutrients that the processed milk
lacks. However all the companies in the milk sector are trying to change the image of
processed milk as non-nutritionist milk. Therefore it can be said that Olper’s has been
positioned as a brand for high income earners. Due to the income factor involved it can
be said that Olper’s milk target a specific social class who are health conscious and
concerned about their weight.
Psychographic segmentation
On the basis of psychographics, factors such as personality traits, lifestyles and values,
the marketers at Olper’s have segmented the market more towards achievers who are
goal-oriented and focused on their careers, and experiencers those who are seeking
variety in the milk sector. For example the ads for Olwell mostly show achievers who
want to be successful, have high aims and are already doing quite well in their
concerned fields. The Olper’s products have targeted experiencers because the
company has given them a new set of brand and so many will make their first purchase
because they want to try something new. Olper’s ads also target believers, traditional
conservative people with concrete beliefs. The ads for Olper’s show the beliefs of
healthy life with processed milk and plays on the emotional aspect more.
Behavioral segmentation
Olper’s products have been segmented on the basis of benefits that consumers seek in
the milk. In this case, people look for a brand that can be used for all purposes from
drinking to tea whiteners as well to feed the animals. The ads also show that consumers
should increase their milk consumption for example with every tea they should use
Olper’s, every morning they should drink Olper’s and everyday they should feed their
pets with Olper’s milk.
There may be some hard core loyal in the milk sector. Loyalty maybe towards such
established brands as Nestle and Haleeb. There might even be switchers and shifting
loyal in the milk sectors that are either price sensitive or want variety. As a result, the
marketers need to find ways to make the hard core loyal attracted to the Olper’s brand
and shifting loyal and switchers to convert into hard core loyal as well.
Positioning involves designing the product and image that will occupy a distinctive place
in the minds of the target market. As can be seen, nestle milkpak and Haleeb have the
largest profit margins and market share in the milk industry. Thus the marketers at
Olper’s have decided to create its own unique image and then strengthen the position in
the customers’ minds. They have done this by taking a number of following steps:
1. Packaging of Olper’s milk and Olwell in red color and Olper’s cream packed in
purple color are quite different and distinctive from the typical green and blue
packing used by other competitors.
2. The brand has been positioned as an all purpose milk that is meant for everyone,
especially for those who live life to the fullest, hence its tag line, “jo dil khol kay
jeetay hain unheen kay liyay hai Olper’s”
Olper’s always tries to create customer intimacy that is it focuses on satisfying the
customers’ unmet needs. Processed milk is seen as less lacking all the nutritions that are
part of milk due to passing through so many processes. But Olper’s positions itself as
milk that has not lost its nutrients.
The unique selling proposition for Olper’s is: Subah Bakhair Zindagi, but recently the
company changed the USP to: Jo dil khol kay jeetay hain unheen kay liyay hai Olper’s.
Both the tag lines have a very positive impact on Olper’s image because of the emotions
involved in both the lines.
a. They have used the attribute positioning for Olper’s milk. The main theme of the
product is that it is meant for all purposes without any user imagery. Olper’s ads
also show attributes of milk such as good for health.
b. They used the benefit positioning for Olwell. The product is positioned as
delivering the benefit of helping to reduce weight and for healthy bones.
c. Olper’s cream is positioned as good for a specific use or application. In this case
the cream can be used to make cake icings and desserts look great.
It can be said that all the different stages have been performed by the marketers with
extreme care and research.
SWOT Analysis
Strengths
1. Engro’s Back
Olper’s is a brand of ENGRO foods. This means that consumers can relate their former
image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer,
IT and infrastructure business. The brand is well known so customers will automatically
have a brand association with Olper’s and see it as a premium quality product. ENGRO is
world renowned so it can easily attract foreign investors in backing it against other
competitors such as Nestle.
ENGRO foods can easily afford research and development costs for Olper’s have in order
to introduce new products. It can also distribute the brand through better channels
because of its long term relationship with distributors in the agriculture sector.
2. PR with farmers
ENGRO has been interacting with the farmers for fertilizers and has gained quite a good
reputation over the years. It has led to a strong bond and long term relationship with
the farmers who are willing to supply milk to the company. This is an added advantage
and strength for the company because it will never be short of milk production. The
farmers also won’t have to look elsewhere to sell their milk.
6. Third-Generation Plant
EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only
plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and
ensure premium quality and hygiene. Moreover, it is also setting up another milk
processing plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33
million).
Weaknesses
1. Olwell TVC
Olwell ad which is based on Western life style, ENGRO foods brand management
showed a man who put off his clothes & remain just in his undergarments, or half nude
lady in a cat walk or men admiring the figures of a lady in mix gender health club.
In this ad they are creating associations with the brand through the stripes, which is a
highlight of Olwell packaging. Half naked people have been shown with tattoos of the
same stripes in order to show that they are loyal consumers of Olwell. Also, the talent,
situations and locations connects well with the ad to give Olwell a premium positioning.
The brilliant marketing people at ENGRO Foods failed to analyze is that the market they
are targeted the ad on, is Pakistan, where practicing Muslims reside, who have strong
religious beliefs. When making the ad, the brand managers were focused on, making an
ad that should give the brand the most premium look and feel amongst the target
consumers but on the other hand they were least bothered about the ethics, religious
beliefs and cultural values.
4. Packaging
EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak
is the only option available to Olper’s for packaging because it is having monopoly in the
packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and
it could increase the production costs.
Opportunities
1. Increased funding by Government
Government has decided to increase farmers’ funding. This is an opportunity for ENGRO
foods because previously due to weather conditions and other reasons there was lots of
wastage of milk but now that can be reduced as farmers will be better able to store milk
for longer time periods.
3. Awareness
Growing dissatisfaction with loose milk and increasing awareness about health and
hygiene issues have led to increased processed milk consumption.
Threats
1. Competition
Competition may pose a threat because the company will have to maintain its
leadership in an expanding market so that it doesn’t lose its market share to its
competitors. For Olper’s it might be difficult to penetrate in a market where the
loyalties exist for such brands as Nestle and Haleeb. These brands have been in the milk
industry far too long and have left a mark in the minds of consumers in terms of quality.
Competition seems to be getting tougher as a result of new players entering the dairy
market.
Consumer’s preferences change with time and prices might create certain barriers in
terms of the profit margins for Olper’s. For example, lose milk is still cheaper than
packaged milk and that is also one factor that people still prefer to buy lose milk.
PEST ANALYSIS
“When the rate of change inside the company is exceeded by the rate of change outside
the company, the end is near.”
Political/Legal Factors
Economic Factors
Inflation rate of Pakistan for the current fiscal year has grown to 7 percent. This thing is
really hurting the purchasing power of Pakistani consumers. PLM which is already
considered as more costly compared to open milk is becoming out of reach of general
public. As a result, there is an increased pressure on PLM companies to either decrease
their prices or at least keep prices stable. Moreover, packaged milk industry which each
year pays millions of taxes is not being given any relief in terms of taxes by the
government.
Competition is also increasing with the entrance of new domestic players in the dairy
and food sector and plans to increase investments by the already established
companies. Nirala, good milk, Pakola are the few names which have recently introduced
their dairy product lines in the market. Major textile groups are also diversifying into
dairy and livestock business and some of them have even acquired lands to start their
business. Leading industrial groups such as Jamal Din Wali Sugar Mills, Dewan Group of
Industries and Shakar Ganj Sugar Mills have already made substantial investments in
dairy & livestock sectors. In March this year, Nestle Pakistan opened a state-of-the-art
milk processing facility in Kabirwala, Punjab. The plant, Nestlé’s largest milk reception
facility in the world has a processing capacity of 2 million litres of milk per day.
Socio-Cultural Factors
In order to make a noticeable increase in penetration, many challenges and perceptions
still have to be overcome by the PLMCs.
The least important one, perhaps, is tradition. Milk, even amongst the most urbanised
consumers, is synonymous with the early arrival of the doodhwala (milkman) at their
home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression
that the milk is fresh, natural and straight from the cow. And it is this perception that
only loose milk is fresh, and therefore healthy and preservative-free, that has to be
overcome, if increased penetration is to occur at a substantial rate.
Over the years, all PLMCs, but especially the two older players, Nestle and Haleeb, as
well as Tetra Pak (the company that packages the processed milk) have been making
active efforts to convince loose milk users to switch to processed milk. In the last six
years, Tetra Pak has launched three major campaigns aimed at changing consumer
perceptions. Last year, Tetra Pak’s third campaign, Wohi Dhoodh Aur Kya? (Milk, What
Else?) addressed the misconception that processed and packaged milk has
preservatives. The campaign talked about the benefits of Tetra Pak’s six-layered
packaging material and innovative technology that keeps milk safe for a long time. The
highlight of the campaign was the introduction of a buffalo character called, Moomoo,
who explained why UHT milk stays safe and hygiene for a long time in a Tetra Pak
carton.
Despite these marketing endeavours, perceptions cannot change overnight; this
requires patience and continuous investment to educate consumers on the benefits of
packaged milk. Every product’s lifecycle consists of an introductory phase, growth phase
and maturity phase. It takes time to change attitudes, especially in a culture where the
concept of fresh milk is healthier option.
Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab,
because most dairy farms are based there, loose milk is cheap at approximately Rs 20
per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh,
however, the price differential between loose (Rs 28) and processed milk (Rs 38) is only
Rs 10. As a result of price considerations, most PLMCs have not increased prices in the
last 5 years. Moreover, Nestle and Haleeb have introduced smaller packages to cater to
consumers with limited cash flows, although there is a convenience factor at play here
as well.
Technological Factors
In year 2005, the Ministry of Industries and Production established Dairy Pakistan
Company on the lines and model of Dairy Australia. The main objectives of the company
are as under:
a. To promote milk and other value added dairy products in the domestic as well as
international markets.
b. To promote development and up-gradation of dairy supply chain in Pakistan by
supporting and facilitating the farmers, processors and other stakeholders across
the value chain.
c. To support dairy sector growth by way of supporting and facilitating business
development services for the enterprises across the dairy value chain.
d. To initiate and support interventions across the dairy value chain to enhance
sector competitiveness through innovations and research.
e. To promote technology development, transfer, assimilation, streamlining,
acquiring and/or up-gradation across dairy value chain by undertaking new
initiatives.
f. To help introduce international best management practices for better
productivity and operational efficiencies.
g. To promote training and skills development of human resources associated with
the dairy sector.
h. To help create enabling/supporting/conducive business environment for
enterprises operating in the dairy sector and propose new rules/regulations/bye-
laws/standards for providing a level playing field and conducive regulatory
environment for the development of sector and propose amendments thereof in
any existing rules/regulations/bye-laws/standard in the sector and bring local
industry in consonance with international standards.
Different initiatives taken by the company, so far, to bring about a White Revolution in
the country are:
b) Model Farms
The targets for this project are to establish 50 farms by the end of June 2006 and
100 by the end of 2006. An Australian consultant is currently visiting Pakistan for
this purpose. First 14 farms in Okara, Punjab have been formally established as
model farms. These farms are generally of medium size and all supply to Nestle.
One model farm has been established in Sindh. Efforts have been made to
identify clusters of farms to be established as model farms at stage two. It is
proposed to work with one group of small farmers who are currently part of
Idara-e-Kissan / Halla and a further group of farmers in Sindh who currently
supply to Engro. In stage three, it is proposed to identify further farms with
probable extension of the programme to NWFP.
Product
Olper’s Milk
Launched on March 20, 2006, Olper’s milk is EFL’s standardized and homogenized pure
UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. It is EFL’s premier
brand, and the choice of quality-conscious consumers who only go for the best. It is
available in easy-to-open, 6-layered Tetra Pak Brick Aseptic red packaging and comes
with a 3 months shelf life.
Shipping Units
Olper’s Cream
The premium cream processed hygienically from pure fresh milk, Olper’s Cream is
luxuriously rich in its thickness & nutritional value. It promises the richest & scrumptious
assortment of tempting toppings, delicious desserts and creamiest coffee with its
unique taste, also great for eating with bread etc. It was launched on September, 2006
and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months
shelf life.
Shipping Units
Shipping Units
According to Mr. Ali Akbar, Director Marketing EFL, “In order to succeed, you should
ALWAYS capitalize on your STRENGHTS and NEVER on your COMPETITOR’S WEAKNESS!”
Engro Foods did exactly that. They used their decades of PR with farmers and used it to
provide world-class supply-chain management for delivering the ultimate quality milk in
Pakistan.
Having kicked off simultaneously in 20 cities across Pakistan, the launch has been
ambitious and currently Olper’s is available in 80 cities across Pakistan. It reflects the
company’s intention to become a big player in the industry, both on a national and
international level.
Engro Foods Limited has its own dales and distribution network. EFL has divided
Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad,
Peshawar and Multan. Due to an appealing color scheme, which stands out in the
clutter and thanks to the EFL’s strong relationship building and special discounts to retail
outlets, Olper’s has gained a proper shelf placement in the presence of competitors like
Nestle and Haleeb .
Price
EFL IS pursuing the competitive pricing strategy for its products. In competitive pricing
the price of the product is determined considering the price of major competitors like
Nestle, Haleeb etc.
Olper’s Milk
Price (Rs.)
Size (ml) Haleeb Dairy
Olper’s Nestle Milkpak Haleeb
Queen
1000 38 38 38 32
500 22 22 22 18
250 12 12 12 10
Olper’s Cream
Price (Rs.)
Size (ml)
Olper’s Cream Nestle Haleeb Cream
250 28 --- 28
Olwell Hi-Cal Lo-Fat (HFCL) Milk
Price (Rs.)
Size (ml)
Olwell Nestle NesVita Haleeb Skimz
1000 45 45 ---
500 25 25 25
Olper’s Milk
Media mix for Olper’s milk includes TV, print, outdoor, radio & BTL activities. Olper’s
considers radio still an effective medium because A & B house wives still listen to the
radio on a daily basis.
Body Copy:
With Olper’s Milk Limited
Edition Pack we join you in the
celebrations of Ramadan. Enjoy
the full cream goodness of
Premium Quality Olper's Milk
every Sehr and Iftaar. So treat
yourself with Olper's Milk all
throughout Ramadan and get
ready to reveal in the colorful
festivities of Eid.
Tag Line (Corporate Slogan):
Subah Bakhair Zindagi
Agency:
JWT Asiatic
Post Mortem
Graphics of the ad are excellent except the body copy which is quiet overloaded with
information. TVC however, is excellent. The Signature ad (the product intro ad) was a
125 seconds ad with only 3 seconds of branding! This type of advertising has never been
practiced in Pakistan. Using celebrities like Shan is not a good option as he has already
developed his association with Mobilink. But overall Olper’s has done a great job in
designing and executing its ad campaign.
Caption:
JWT Asiatic
Post Mortem
Olper’s Cream
Caption:
Cream of all Creams
Body Copy:
Be tempted, be drawn, put that
extra topping in your life with
the rich creamy experience of
scrumptious Olper’s Cream.
Post Mortem
Color is soothing, caption is great. But the picture of the pastry is not attractive at all,
the cream is barely there. It should be mouth watering picture of a desert with lots and
lots of cream on top. Life's a dessert is a boring statement. If you are a creative team,
you can for sure come up with something new and fun!
Caption:
Stop Ageing
Body Copy:
JWT Asiatic
Post Mortem
The brand is positioned rather too narrowly towards SEC A. Nestlé’s NesVita and
Calcilock campaign was closer to a normal Pakistani consumer. Secondly, there are
certain boundaries and cultural values that should be respected. Olwell ad is too much
for me to digest and I have no options but to switch the channel. Engro has over done it
and to make things worse it’s not as clear and well communicated as NesVita was.
Brand equity can be defined as the effects that marketing activities have on a particular
brand. There are different types of brand equity but the one that the marketers are
most concerned about the customer-based brand equity. Customer-based brand equity
is an important element that marketers have to keep in mind before marketing any
brand. There are different ways of building, measuring and managing customer-based
brand equity.
Once the brand is introduced into the market it is important to build brand equity. This
helps to improve sales and has long term benefits. ENGRO, although a separate name
from Olper’s has a very strong impact on the sales of Olper’s. People know ENGRO
because of its well established reputation in fertilization sector. Therefore, they hold a
strong association in their minds for Olper’s as well. There are different nodes that
connect ENGRO to Olper’s in the customers’ minds. The ads for Olper’s do not show any
link with ENGRO foods but the HR managers keep mentioning ENGRO in every press
release of Olper’s. .that is how people have associated Olper’s with ENGRO.
The sales figure for the first eight months of Olper’s launch showed a number in billions.
This is evidence that people have accepted the brand and liked it. Thus marketers have
been successful in creating customer-based brand equity for Olper’s. This could be due
to strong associations with ENGRO in the minds of customers.
Due to just a few brands in the milk sector it is easier for customers to make different
associations for each brand in their minds. Therefore, a person’s ability to recognize and
recall a brand under a given set of product categories becomes easier. Olper’s has been
aggressively promoted which is why customers can recognize it easily. The red color and
the shelf space that the brand commands make it even more prominent from the rest of
the brands.
Although Olper’s product related attributes, such as white color, hygienic and processed
milk, are quite similar to other brands such as Nestle and Haleeb, while the non-product
related attributes such as the packaging of red color and usage imagery that is portrayed
in every advertisement of Olper’s, can be distinguished from the competitors’ brands.
Olper’s is promoted with the viewpoint that the milk is meant for all-purposes. This
obviously shows the usage imagery of the brand.
When it comes to the benefits that customers look for in milk are clean processed milk
that is good for health and can be used for all purposes. Olper’s provides its customers
with functional and experiential benefits. The functional benefits include healthy bones,
high calcium, good taste, while experiential benefits are that every morning starts with
Olper’s milk that is the tag line subah Bakhair Zindagi. Other experiential benefit is the
variety that has come into the milk sector due to another brand entering the market.
People can now choose from a number of brands for milk and especially the variety
seekers will definitely want another brand to enter the market.
If, in the beginning, consumers are not willing to buy the brand then it might be due to
such factors as low involvement in that product category or due to brand loyalty
towards brands like Nestle and Haleeb. However, the color of packaging in the grocery
stores may attract customers enough to make them buy it, thus the brand attitude In
this case helped the brand to form the basis for customer behavior.
Olper’s has favorable, strong and unique brand associations in customers’ minds. It is
favorable because milk is a need and clean hygienic milk that is free of bacteria and
germs is what conscious customers are looking for. Due to awareness about health and
drawbacks of lose milk the customers are further in search of processed milk. The
association is also strong because there is a very string cue linked to Olper’s and that is
ENGRO foods. Usually people thin Olper’s as a sub brand of ENGRO foods. Due to this
reason customers perceive Olper’s’ as a high quality brand that will come up to their
expectations. Olper’s has created a unique image through its ads. For example, the ad
for Olwell is one that is exclusive and cannot be forgotten. Due to such positive brand
image, Olper’s enjoys higher profit margins and increased marketing communication
effectiveness.
Olper’s itself is a very distinctive name that is easy to remember and one that will stay in
the memory for a long period of time. It even serves to enhance the image of the brand
as all-purpose milk. In the same way, Olwell serves the purpose of all is well in terms of
customers’ health Therefore, the choice of brand identity when building the brand
equity has been very good. These create brand recognition and recall all at the same
time. Olper’s has been developing marketing programs to enhance brand awareness
initially. Due to familiarity with ENGRO foods, Olper’s did not have much difficulty in
building the customer-based brand equity. Thus ENGRO can also be seen as a secondary
association for Olper’s and one that has strongly influences the positioning of Olper’s. it
has added to the credibility of Olper’s.
HR managers used questionnaires to find how customers feel about the brand. They
used the indirect approach with different qualitative and projective techniques (the
questionnaire contained some questions related to sentence completion and brand
personality description). They used this to understand customers’ feelings for the brand.
The managers agree that ENGRO Foods has helped improve the image for Olper’s. They
assessed the leverage of secondary associations in this case by comparing the
company’s characteristic with the characteristics of Olper’s.
The organization is managing the customer based brand equity because they realize the
significance of marketing activities and their effect on creating more value for the brand,
and so by influencing brand knowledge, sales can be improved. Olper’s is concentrating
on the emotional aspect in their ads in order to focus on the core need of customers
that can be satisfied. Olper’s has also funded Women’s exhibition in Karachi a few
months ago and currently is sponsoring cricket World Cup 2007, and further adding
more value to the brand and managing customer-based brand equity.
Social Responsibility
Corporate Social Responsibility is at the heart of ENGRO’s work. We believe in working
with all the stakeholders to improve their quality of life, in a way that is both good for
business and development. We also believe in earning the trust of our stakeholders by
acting responsibly within the communities that we serve.
To help achieve these goals, the company has been making sizeable contributions for
various CSR projects.
The company has interventions in number of areas like education, health, environment,
sports, and infrastructural improvements.
Education Programs
Ghotki district ranks among the lowest on social indicators. Particularly, the scenario of
education is less than desired. The literacy rate is mere 28.65%. Literacy rate is heavily
skewed between genders with 44.2% and 11.85% of male and female population being
literate respectively.
Keeping in mind the above scenario, ENGRO has taken an integrated approach and have
number of interventions at different levels. Pillars of its intervention in educational
sector are quality, community and gender participation.
Ali Institute of Education, Lahore and The Citizens Foundation are the major partners of
ENGRO in educational interventions.
Katcha Schools:
The program started off as an informal education program in Katcha (riverine) area of
Indus in Ghotki district with 2 schools in 2001. The program gradually grew in its reach
and as of now, a total of 11 schools are operating with an enrollment of more than 850
students and 18 full time trained teachers.
On infrastructure front in this area, ENGRO has leveraged its contribution with USAID
and district government funding by constructing proper school structures at four
locations.
Health Programs
General availability of health facilities is less for growing population of Ghotki district.
With this view ENGRO has developed a number of health infrastructural programs:
In 2005, free snakebite treatment has been provided to record 5,000 victims at
company's 24-hours 7-day clinic at plant site in Daharki. Since inception of program in
1977, more than 62,000 patients have been treated. Since this is the only center in the
400 KM proximity, people from far flung areas are brought to this center for treatment
and administration of Anti Snake Venom (ASV).
Dialysis Center in Daharki, established in 2001 at RHC Daharki, has successfully handled
2400 cases so far.
Eye Care Centre:
Established in 1999 at a cost of Rs. 5 million, the Eye Care Center at Daharki has so far
treated more than 45,000 patients for various ailments. In addition more than 4,000
surgeries including IOL implants, have taken place at the centre.
Tele-Medicine Project
The Company initiated work on the first Telemedicine project in 2004 that provides
delivery of health care services to selected rural areas from specialist doctors in Karachi
using communication technologies for diagnosis, treatment and prevention of diseases.
The facility includes electronic online transmission of X-rays, Electro Cardio Grams and
patients live heartbeats for real time consultation by experts. Videoconferencing and
image transfer facility has also been provided between Hub and the Spokes.
The project has been commissioned at two locations. The specialists at Karachi Hub
examine patients referred to them electronically from Gambat Institute of Medical
Sciences and from Shikarpur District Hospital. 5-10 tele-consultations are being made
each day.
Future plans
Engro Foods Limited (EFL) announced its vision to emerge as a global player in the food
industry with a proposed initial spending of over $200 million. The vision announced at
a press conference in Karachi aims at transforming the company within the next five
years into first national food industry giant, then into a regional force and finally into a
global player. For the year 2007, the Board of the Company has already approved Rs 2.0
billion investments in capacity expansion and marketing, including setting up of a plant
in Central Punjab.
While unfurling its future plans, ENGRO Foods CEO Sarfraz Rehman stated, "Our vision is
to become a fast expanding mega foods company. To achieve our vision, the company
will initially focus on dairy by investing a substantial amount in plant, milk collection
capability and marketing. We firmly believe that there is a big dairy opportunity
available and with our strong entry in UHT milk category, with Olper’s milk, we have
placed ourselves ahead of others in terms of quality and consumer-understanding. It is
our belief that we can get the maximum out of this opportunity by focusing on
innovation and quality." – Press release
"ENGRO Foods is making concrete efforts to expand in and beyond Pakistan; through
strategic international alliances, our vision is to eventually become global."
He said that dairies have entered the market in the past but failed due to lack of
technical expertise and financial soundness. Elaborating further, he mentioned that
ENGRO's 40-year-old relationship with the farmer also gives ENGRO Foods another edge
over the competitors.
The future plans also include as ENGRO Foods coming up with new products / brands to
expand its portfolio in the dairy industry. The company will be launching new brands in
various dairy categories after completing solid consumer and product research. The
company has already hired various global research partners to develop its future
portfolio.
The company also plans to encourage women in the company's workforce, especially in
the milk collection areas, thus contributing to poverty alleviation. The company is
already working with several NGOs and agencies and has recently signed an
understanding with UNDP to initiate a women's veterinary workers programme in
addition to signing a micro-financing model for dairy farming with Pakistan Poverty
Alleviation Fund (PPAF).
Conclusion