Presentation on

Course Instructor: Sir Shahood Alam

GROUP MEMBERS
1.
2.

KASHIF ALI AADIL HANIF

MBA (Evening Program) Semester IV University of Karachi

Contents Introduction Segmenting Targeting and positioning SWOT Analysis PEST Analysis 4Ps in Marketing

Engro Foods History

Engro Foods (Pvt.) Limited (EFL) was incorporated in 2004. Location Of Plant Sukkur Area on 23 acre land Capacity raw milk reception capability of 300,000 liters per day 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

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Vision

"Our vision is to become a fast expanding mega foods company.

Departments 1.Administration 2. Finance and Accounts 3. Human Resource 4. Marketing 5. Milk Procurement 6. MIS 7. Production 8. Quality Assurance 9. Supply and Distribution

Segmenting and targeting the market for olpers

Olpers segments the market keeping some basic things in mind like milk to be white, carefully processed, and good for health and bones.

Demographic segmentation
Olpers products are not bounded to any particular age, gender or lifecycle stage, the brand is for all the users in upper or middle class families.

Psychographic segmentation On the basis of psychographics, factors such as personality traits, lifecycles and values the marketers at olpers have segmented the market.

Behavioral segmentation Products have been segmented on the basis of benefits that consumers seek in the milk.

Positioning the brand Olpers positioned the brand by taking a number of following steps: Packaging of olpers milk and olwell in red color and Olpers cream in purple color . By selling proposition for olpers is: jo dil khol kay jeetay hain unheen k lye hay olpers.

Strengths 1. Engros Back

Olpers is a brand of ENGRO foods. ENGRO foods can easily afford research and development. ENGRO can distribute the brand through better channel.

2. PR with farmers

ENGRO has a strong bond and long term relationship with the farmers who are willing to supply milk to the company.

3. Positive response from customers In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction upon EFLs products. It has a good taste, and world-class quality proposition system.

4. Strong consumer & product research AC Nielsen Mindshare JWT Asiatic and MARS marketing and advertising agencies.

Weaknesses
1. Olwell TV COMMERCIAL Olwell ad which is based on Western life style. Failed to analyze in Pakistan, where practicing Muslims reside, Ignoring the ethics, religious beliefs and cultural values.

2. Milk collection & distribution costs EFLs 34 out of 40 milk-collection centers are located in Punjab, 1Sukkhur (Sindh). It increases collection & distribution costs. increases the chances of milk getting spoiled because of long travelling time. 3. Narrow brand portfolio EFLs brand portfolio still consists of just few products i.e. Olpers Milk, Olwell Milk, Olpers Cream,Tarang (Liquid & Powder), Owsum flavored milk, Omore Ice Cream & Olfrute (Juices & Nectars).

Opportunities
1. Increased funding by Government
Government has decided to increase farmers funding.

2. Increased consumption of PLM

Each competitor in the milk industry wants to increase penetration of processed liquid milk.

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 produces 32 billion liter of milk in a year, 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 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 For example, loose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy loose milk.

2 Competition
For Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

Political factors
There are no specific government rules and regulation but because of unstable political conditions strikes and road blocking is creating problems for delivery on time

Economical factors
Inflation rate of Pakistan for the current fiscal year has grown to 12.69 percent. This thing is really hurting the purchasing power of Pakistani consumers. Packaged milk industry 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 these companies to either decrease their prices or at least keep prices stable.

Social factors
In Pakistan the norm is to get up in the morning and get the fresh milk (straight from the cow) from the doodh wala. It is a general perception that only loose milk is fresh and free from preservatives and thus healthy .For substantial penetration of the market, packaged milk providers have to overcome all such perceptions and generate awareness about the safety and healthiness of packaged milk.

This will however require a lot of time and patience because most of the people are not willing to spend additional amount of money on packaged milk when they are convinced that it has a lot of preservatives and is unhealthy.

Technological factors
Our project is to establish farms. First 14 farms in Okara, Punjab have been formally established as model farms. Currently, most equipment for storage and processing is being imported from Western countries. Milk yields per animal have been increased through scientific feeding & breeding.

Marketing Mix Strategies

Product

Place
Promotion

Price

Companys Product Portfolio

Olpers

Milk Olwell (HCLF) Milk Olpers Cream Tarang Tea Whitener (Liquid & Powder) Owsum flavored milk Omore Ice Cream Olfrute Juices & Nectars

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
1.5 Litres (1500 ml) : 8 packs per carton 1 Litre (1000 ml ) : 12 packs per carton Litre (500 ml) : 12 packs per shrink-wrapped carton 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, 2006. and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months shelf life.
Shipping Units
1/5

tray

Litre (200 ml) : 24 packs per shrink-wrapped

Olwell Hi-Cal Lo-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

Placement & Distribution

According

to Syed Ali Akbar, Director Marketing EFL, In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your Competitors Weaknesses! 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 national and international level.

Engro Foods Limited has its own distribution network.

EFL

has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan.

Promotion & Advertising

Olpers

launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is concerned, with TV Cs, print ads, radio commercials, billboards and activities including direct consumer and shop branding activities.

Olpers Milk
Media

mix for Olpers milk includes TV, print, outdoor, radio & BTL activities. Olpers

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 .

 Subha Bakhair Zindagi

OLPERS

Olpers campaigns

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.

PRICE (milk)
Size (ml) Olpers Nestle Haleeb Milkpak Good Milk

1000 500 250

65 36 18

65 36 18

65 36 18

62 18

Olper's is becoming the leading brand in the market. Olper's has earned lions share and goodwill in the market as well as in the minds of the customers. But this is not the End because "SKY IS THE ONLY LIMIT"

Conclusion

THE END