Contents

Abstract ......................................................................................................................................................... 4
Milking the Market: ...................................................................................................................................... 4
Engro Foods History ..................................................................................................................................... 5
Vision ............................................................................................................................................................. 5
Core Values ................................................................................................................................................... 6
Departments ................................................................................................................................................. 6
Marketing Research conducted by ENGRO Foods ........................................................................................ 8
Segmenting Targeting and Positioning ......................................................................................................... 9
Segmenting and targeting the market for Olpers .................................................................................... 9
Demographic segmentation ................................................................................................................... 10
Psychographic segmentation .................................................................................................................. 10
Behavioral segmentation ........................................................................................................................ 10
Positioning the brand .............................................................................................................................. 11
SWOT Analysis............................................................................................................................................. 12
Strengths ..................................................................................................................................................... 12
1.Engros Back ......................................................................................................................................... 12
2. PR with farmers ................................................................................................................................... 12
3. Positive response from customers ...................................................................................................... 12
5. Strong consumer & product research ................................................................................................. 12
6. Third-Generation Plant ....................................................................................................................... 13
Weaknesses ................................................................................................................................................ 13
1. Olwell TVC ........................................................................................................................................... 13
2. Owning Red Color ............................................................................................................................... 13
3. Low Quality Milk ................................................................................................................................. 13
4. Packaging ............................................................................................................................................ 14
5. Milk collection & distribution costs .................................................................................................... 14
6. Narrow brand portfolio ....................................................................................................................... 14
Opportunities .............................................................................................................................................. 14
1. Increased funding by Government ..................................................................................................... 14
2. Increased consumption of PLM .......................................................................................................... 14
3. Awareness ........................................................................................................................................... 15
4. Third largest producer of milk............................................................................................................. 15
Threats ........................................................................................................................................................ 15
1. Competition ........................................................................................................................................ 15
2. Perceptions and Price Differentials ..................................................................................................... 15
PEST ANALYSIS ............................................................................................................................................ 16
Political/Legal Factors Economic Factors ................................................................................................ 16
Socio-Cultural Factors ............................................................................................................................. 16
Technological Factors.............................................................................................................................. 17
Farm Cooling Tanks Loan Scheme ........................................................................................................... 18
Model Farms ........................................................................................................................................... 18
Other Policy Interventions ...................................................................................................................... 18
Product ........................................................................................................................................................ 19
Olpers Milk ............................................................................................................................................. 19
Shipping Units ......................................................................................................................................... 19
Olpers Cream ......................................................................................................................................... 19
Shipping Units ......................................................................................................................................... 19
Olwell Hi-Cal Low-Fat (HCFL) Milk ........................................................................................................... 19
Shipping Units ......................................................................................................................................... 19
Placement & Distribution ............................................................................................................................ 20
Price ............................................................................................................................................................ 20
Promotion & Advertising ........................................................................................................................ 20
Olpers Milk ................................................................................................................................................. 20
Post Mortem ........................................................................................................................................... 21
Olwell Hi-Cal Low-Fat (HCFL) Milk ............................................................................................................... 21
Post Mortem ........................................................................................................................................... 21
Building customer based brand equity ....................................................................................................... 21
Measuring customer-based brand equity................................................................................................... 23
Managing customer-based brand equity .................................................................................................... 23
Social Responsibility .................................................................................................................................... 23
Future plans ................................................................................................................................................ 24
Conclusion ................................................................................................................................................... 24































Abstract
This report is about the marketing of Olpers 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 Olpers 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 Olpers and eventually the type of
organizational culture of the organization. We discuss the types of marketing research
conducted by the company before introducing it to the market and how they have segmented
its target market and positioned the product in the minds of the consumers.
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 Olpers,
using the 4 Ps to the best of their abilities. The report also confers about the role brand equity
played in increasing the sales for Olpers. 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 Olpers.
We conclude the report by discussing the social responsibilities in which ENGRO Fertilizers is
involved and the future plans of the organization for Olpers.
Milking the Market:
In the recent few months, it seemed that everywhere one looked, there was either a billboard, a
TVC or a radio jingle promoting a brand of milk whether it was Haleeb, Nurpur, Pakola,
Nirala, or, recently, Olpers.
But perhaps this isnt 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. However, 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 urbanized 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 24per 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 200,000liters 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 companys 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. Can did and open communications
6. Individual growth and development
7. Enthusiastic pursuit of profit
8. Ethics and integrity
9. Safety, Health and environment.
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.
2. Finance and Accounts
The Finance and Accounting departments at Engro Foods are responsible for the total financial
management of the different businesses of the company. From the usual accounting statements
and sheets to risk and portfolio management, the team ensures that every rupee coming into
and out of the Companies' pockets is properly documented and audited.
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 super annuation. 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.
9. Supply and Distribution
This department ensures timely and effective distribution of the products to different shops and
stores spread all across Pakistan. From transportation management too btaining route permits
and approvals, is done by this department.
Marketing Research conducted by ENGRO Foods
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 wasnt 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 Olpers. Olpers 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 Olpers.
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 wasnt
enough so they started to collect primary data through the use of different techniques. The
first started with survey research to understand the peoples 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. The researchers conducted questionnaires to find the responses
of consumers about Olpers. They got a positive feedback from the customers who also
encouraged them to invest further and to setup a new plant in Sahiwal. Through different
research methods the organization was also able to find out the number of loyal of competitors
brands.
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 Olpers 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 Olpers in the market are Olwell diet milk and Olpers
cream. The organization has further plans to expand more in this sector and introduce more
products related to milk.
Segmenting Targeting and Positioning
Segmenting and targeting the market for Olpers

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 Olpers
market has been segmented. The marketers at Olpers have had a number of options available to them
when segmenting the market for their products. So far company has introduced three new
products: Olpers milk, Olwell diet milk and Olpers cream.
Demographic segmentation
Olpers 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 individuals income but lower class wouldnt
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 Olpers has been positioned as a brand for high income
earners. Due to the income factor involved it can be said that Olpers 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 Olpers 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 whowant to be
successful, have high aims and are already doing quite well in their concerned fields. The
Olpers 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.
Olpers ads also target believers, traditional conservative people with concrete beliefs. The ads
for Olpers show the beliefs of healthy life with processed milk and plays on the emotional
aspect more.
Behavioral segmentation
Olpers 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 Olpers, every morning they should
drink Olpers and everyday they should feed their pets with Olpers 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 Olpers brand and shifting loyal and
switchers to convert into hard core loyal as well.
Positioning the brand
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 milkpack and Haleeb have the largest profit
margins and market share in the milk industry. Thus the marketers at Olpers 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 Olpers milk and Olwell in red color and Olpers 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 Olpers
Olpers 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 arepart of milk due
to passing through so many processes. But Olpers positions itself as milk that has not lost its
nutrients. The unique selling proposition for Olpers is: Subah Bakhair Zindagi
, but recently the company changed the USP to: Jo dil khol kay jeetay hain unheen kay liyay
hai Olpers. Both the tag lines have a very positive impact on Olpers image because of the emotions
involved in both the lines.
The marketers have used different positioning for Olpers products:
a. They have used the attribute positioning for Olpers milk. The main theme of the product is
that it is meant for all purposes without any user imagery. Olpers 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. Olpers 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.Engros Back
Olpers is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO
foods to Olpers. 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 Olpers 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 Olpers 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
wont have to look elsewhere to sell their milk.
3. Positive response from customers
In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction upon EFLs p
roducts.
4. Its taste, quality proposition and world-class quality proposition system.
5. Strong consumer & product research
Olpers done a strong consumer & product research before and after launching the product. This has
provided them the perfect launching pad to eventually emerge as a global player in the food
industry. To develop its future portfolios, EFL has hired various global research partners like AC
Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.
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 $ 33million).
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.
2. Owning Red Color
The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a blue
carton etc. This may create problems because when a consumer enters a grocery shop, then
he/she might have problems in recalling the brand because there is no color association
attached to Olpers. The company may need to find a suitable color in which to focus its
upcoming marketing strategies.
3. Low Quality Milk
EFL is not having its own dairy farms; it largely collects loose milk from farmers & gwalas
through its 40 milk collection centers, which sometimes is of low quality and impure because
they add vegetable oil to milk to get higher prices.
4. Packaging
EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the
only option available to Olpers 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.
5. Milk collection & distribution costs
EFLs 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk
processing facility is situated near Sukkhur (Sindh). It increases the milk collection &
distribution costs; and also increases the chances of milk getting spoiled because of increased
travelling time.
6. Narrow brand portfolio
It has been more than a year now, when EFL launched its first dairy product, Olpers Milk on
March 20, 2006. But EFLs brand portfolio still consists of just 3 products i.e. Olpers Milk,
Olwell Milk and Olpers Cream. Whereas its competitors like Nestle and Haleeb Foods have a
much diversified line of dairy products.
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.
2. Increased consumption of PLM
Competition may create opportunities for the company because each competitor in the milk
industry wants to increase penetration of processed liquid milk and so they will create
awareness for consumers through different advertising media. This will ensure the increase in
the consumption of processed milk instead of lose milk and so will in turn lead to increase in
sales for the company. Therefore there will be an opportunity for accelerated growth.
3. Awareness
Growing dissatisfaction with loose milk and increasing awareness about health and hygiene
issues have led to increased processed milk consumption.
4. Third largest producer of milk
Pakistan is the Third largest producer of milk in the world with a total production of 32billion
liter of milk a year, whose value is more than that of the combined value of wheat and cotton,
from a total herd size of 50 million milch animals (buffaloes and cows). Livestock accounts for
46.8 percent of agricultural value added and about 10.8percent of the GDP. Milk is the largest
commodity from the livestock sector accounting for 51 percent of the total value of the sector.
Due to the steps taken by the government and private sector, countrys annual milk production
is expected to grow at an additional 3 billion litres in the next few years. This is quite an
opportunity for ENGRO foods as there is lot of growth in this part of the sector.
Threats
1. Competition
Competition may pose a threat because the company will have to maintain its leadership in
an expanding market so that it doesnt lose its market share to its competitors. For Olpers
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.
2. Perceptions and Price Differentials
Consumers perceptions and price differentials can cause a threat for the company. It is important
that Olpers comes up to the expectations of the customers and fulfills its conformance quality
that is the company meets its promised specifications.
Consumers preferences change with time and prices might create certain barriers in terms of the profit
margins for Olpers. 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.
(Jack Welch, former Chief Executive Officer of General Electric)
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, Nestls 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 urbanized 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 Paks 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 Paks 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 products
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 20per 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 stake holders 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:
Farm Cooling Tanks Loan Scheme
A mechanism for the operation of Farm Cooling Tank Loan Scheme has been proposed and
guidelines are being developed for applicants. They will include standards for quality and
hygiene for installation of the tanks and also details on the testing of the milk being received
for composition and quality.


Model Farms
The targets for this project are to establish 50 farms by the end of June 2006 and100 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.
Other Policy Interventions
Draft Quality Standards are being worked on by a SWOG group who has provided the first
draft paper for discussion with stakeholders. It is necessary to open a dialogue with PSQCA, PSI
and other interested parties to progress the establishment of Food Safety Standards. Work
is also being undertaken to establish a case for zero rating Dairy Products for sales tax.

Product
Olpers Milk

Launched on March 20, 2006, Olpers milk is EFLs standardized and homogenized pure
UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. It is EFLs 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
1 Litre (1000 ml ) : 12 packs per carton Litre (500 ml) : 12 packs per shrink-wrapped tray
Litre (250 ml) : 27 packs per shrink-wrapped tray
Olpers Cream
The premium cream processed hygienically from pure fresh milk, Olpers 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, 2006and comes in 6-layered Tetra Pak Brick aseptic
purple color packaging with 6 months shelf life.
Shipping Units
Litre (250 ml) : 27 packs per shrink-wrapped tray
Olwell Hi-Cal Low-Fat (HCFL) Milk
Launched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the richness of
pure milk. It is an ideal choice for weight-watchers and heart patients. It is also high in
calcium content, which prevents osteoporosis. Packed in 6-layered Tetra Pak Brick Aseptic red
packaging with easy-to-open plastic cap, it comes with a 3 months shelf life.
Shipping Units
1 Litre (1000 ml ) : 12 packs per carton Litre (500 ml) : 12 packs per shrink-wrapped tray
Placement & Distribution
According to Mr. Ali Akbar, Director Marketing EFL, In order to succeed, you should ALWAYS
capitalize on your STRENGHTS and NEVER on your COMPETITORS 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 Olpers is available in 80 cities across Pakistan. It reflects the companys
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 EFLs
strong relationship building and special discounts to retail outlets, Olpers 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.
Promotion & Advertising
Olpers launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is
concerned, with TVCs, print ads, radio commercials, billboards and plenty of BTL (below the
line) activities including direct consumer and shop branding activities. Due to this
aggressive marketing campaign, the competition seems to be getting tougher. This can be
gauged from the fact that Nestle re-launched its product packaging and marketing campaign just
before Olpers launch. One can also a far greater number of milk advertising billboards in Multan city
than seen earlier like of Nirala, good milk and Nestle.

olpers Milk
Media mix for Olpers milk includes TV, print, outdoor, radio & BTL activities. Olpers considers
radio still an effective medium because A & B house wives still listen to the radio on a daily
basis.
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 a125
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 Olpers has done a great job In designing and executing
its ad campaign.
Olwell Hi-Cal Low-Fat (HCFL) Milk
Post Mortem
The brand is positioned rather too narrowly towards SEC A. Nestls 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 its
not as clear and well communicated as NesVita was.
Building customer based brand equity
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 Olpers has a very strong impact
on the sales of Olpers. People know ENGRO because of its well established reputation in fertilization
sector. Therefore, they hold a strong association in their minds for Olpers as well. There are
different nodes that connect ENGRO to Olpers in the customers minds. The ads for Olpers do
not show any link with ENGRO foods but the HR managers keep mentioning ENGRO in every
press release of Olpers that is how people have associated Olpers with ENGRO.
The sales figure for the first eight months of Olpers 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 Olpers. 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 persons ability to recognize and recall a brand under a given set of
product categories becomes easier. Olpers 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 Olpers 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 Olpers, can be distinguished from the competitors brands. Olpers 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. Olpers 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
Olpers 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.
Olpers 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 Olpers and that is ENGRO foods. Usually people
thin Olpers as a sub brand of ENGRO foods. Due to this reason customers perceive Olpers as
a high quality brand that will come up to their expectations. Olpers 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, Olpers enjoys higher profit margins and increased marketing
communication effectiveness.
Olpers 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. Olpers has been developing
marketing programs to enhance brand awareness initially. Due to familiarity with ENGRO foods,
Olpers did not have much difficulty in building the customer-based brand equity. Thus
ENGRO can also be seen as a secondary association for Olpers and one that has strongly
influences the positioning of Olpers. ithas added to the credibility of Olpers.
Measuring customer-based brand equity
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 Olpers. They assessed the leverage of
secondary associations in this case by comparing the companys characteristic with the
characteristics of Olpers.
Managing customer-based brand equity
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. Olpers is concentrating on the
emotional aspect in their ads in order to focus on the core need of customers that can be
satisfied. Olpers has also funded Womens 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 ENGROs 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.ENGROs urea manufacturing site is
located in Daharki district Ghotki.
It operates in Daharki for past 40 years now. Since the company has grown from this single
manufacturing facility to a truly diversified corporate entity, it owes a lot to Daharki. The
companys commitment to this part of Sindh is evident in its social development projects as the
bulk of Companys contribution budget is spent in and around Daharki.The company has
interventions in number of areas like education, health, environment, sports, and
infrastructural improvements.
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 Olpers 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."
Conclusion
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).