ENGRO OLFRUTE MARKETING PLAN

Presented To: Ms. Maryam Wazirzada

Presented By:Aimen Shah

Aneel Ahmed KhanAyyaz TanveerHussain Iftikhar

M. A. Hanan RasoolMir Arooj HassanNatasha Hassan

Omair AnwarWaqas Azeem Bajwa

Company Introduction

• Subsidiary of Engro Corporation Ltd incorporated in 2005

• Major Brands• Olpers Milk, Tarang,

Omore and Olfrute

Engro Foods

• Launched in 2010

• Pure Nectar Juices

• 6 flavors• Failed Launch,

only 1% current market shareOlfrute

Olfrute

Flavors

Mango, Apple, Orange

Peach Guava, Grape

Competition

Direct• Nestle• Shezan• Minute Maid

Indirect

• Pepsi• Coca Cola• Other

Beverage Brands

Competition

Competitor Analysis

Nestle Fruita Vitals•Product: Pure

Nectars and diluted

•Price: Price skimming

•Placement: Every nook and cranny

•Promotion: Psychographic, Young Adults/couples

•SKU sizes: 200 ml and 1 liter packs

Shezan All Pure• Product: Pure Nectars• Price: Market follower, right behind

Nestle• Placement: Major retail outlets and

department stores• Promotion: Only at time of launch.

Cashing in on the strong brand equity and awareness

• SKU sizes: 200 ml and 1 liter packs

Minute Maid• Product: Synthetic pulp juices. Just

introduced new flavor• Price: Market skimming strategy• Placement: Available at most retail outlets,

large and small• Promotion: Aggressive brand activation at

launch, backed up by TVCs in summers• SKU sizes: 300 ml and 1 liter

Colas•Product: Pepsi

and Coke•Price: Market

penetration pricing

•Placement: Every nook and cranny

•Promotion: Aggressive year round promotion

•SKUs: 250 ml., 500 ml., 1 liter, 1.5 liters., 2.25 litres.

Olfrute

SWOT

Strengths• Parent company

support• Low financial

constraints• Effective, in place

distribution networks

• Engro foods has established a strong brand image

Weaknesses• Lack of effective

communication in their ads

• No well defined target market

• Olfrute has already failed

Opportunities• Growing market• People shifting from

soft drinks to more healthy drinks

• The “healthy’’ product market is expanding

Threats• Competition• Nestle’s strong

market influence as it is well placed

• Increasing number of substitutes

Marketing Objectives

• Replenish energy

• Quench thirst

• Taste

Consumer Objectives

• Become the most preferred fruit juice drink in Pakistan

• Consumer perception of best quality fruit drink

• Identify and implement unique and effective brand positioning

• Attain high brand loyalty• Be the best value for

money brand

Marketing Objectives • Capture 15%

market share within the first year of implementation of this marketing plan

• Increase market presence through proper utilization of Engro Foods distribution channels

Marketing Targets

“A juice which provides an instant surge in energy, which quenches thirst and has a pleasant taste from

the first sip to the last, resulting in an experience of a refreshing sensation for the consumer.”

USP

STPMarketing StrategyAction ProgramsMarketing Budget

Proposed Marketing Strategy

Segmentation, Targeting & Positioning

Segments Identified•Housewives

•Working Women

•Professionals / Executives

•Teens

Targeting•Teens•Maximize lifetime customer value•Bring about a change in mindset –

change the perception of fruit juices

Positioning•Lifestyle and psychographic•Young, active, health conscious,

adventurous teens•Focus on the functional features of

the product

AIDA Model Approach

Action = Sales

Desire

Interest

Awareness

Spread awareness about Olfrute and benefits of fruit

juices (energetic, healthy)Create interest

through teaser campaigns at re-launch +

brand activation Desire: Brand

Ambassadors which will appeal

the youth

Action Plan – Product Differentiation

New Flavors – Exotic variants like Passion fruit

Change in Packaging• New SKU of

330 ml• Introduce

bottles for 330 ml and 1 liter

Change in Packaging• Pack design

change for 200 ml juice packs (no straw, just rip and sip)

• Design change – half red (brand association with Olpers) and half fruit colors

Action Plan – Pricing Strategy

Price Skimming• High quality premium juice brand Match prices with

Nestle• We are competing on product differentiation and not on pricing

Action Plan - Placement

Engro Foods

• Robust distribution network in place

• High market presence and reach

Olfrute

• Utilize Engro’s established distribution network for retail stores

Teen Focused

• Schools, Colleges and Universities

• ‘Khokhas’ and tuc shops too

Action Plan – Promotion Strategy

Brand Activati

onATL BTL

Concerts and campus drives

Inter-University Battle of the Bands competition

Teaser Campaign for 15 days

Unveiling of Complete campaign

TVCs Radio

Trade and Retail promotions

Billboards Print

media

Promotions Strategy – 1st Quarter

Teaser Campaign for 15 days on

TVCs, Radio, Billboards and

Print Media

Unveiling of the main campaign and the brand ambassadors

Brand Activation Drive

Starts in popular schools and universities – 12 concerts in

12 months

Teaser Story line

• Old Jingle ‘Taazgi Jagaa Re’• Singing Whistle tune (unable to complete

the tune)• Guy’s feet walking in the park (Person not

shown)• Morning time• Rip and Sip

Teaser Ad 1

• Story continuations• Woman’s feet walking (Person not shown)• Also trying to complete a whistle tune• They meet and drink some thing (Rip and

Sip)• Jingle completed

Teaser Ad 2

Promotions Strategy – Quarter 2 & 3

Introduce the new flavors

Introduce Trade Promotions and retail incentives

Continued focus on campus drives and concerts

Maintain media presence on TV, Radio, Billboards and Print media

Promotions Strategy – Quarter 4

• Campus Concerts coming to an end

• Battle of the Bands – Inter university competition commences

Brand Activatio

n• Maintain media presence but

not as aggressive as before• Focus more on trade

promotions to encourage distributors to carry Olfrute and its variants

ATL and BTL

Media Planning

TVCs• Time Slots- 7

pm to 10 pm• Geo TV, Aag,

Play, 8XM, Hum TV, Oxygene, Geo Sports

Radio Commercials• Time Slots- 7

am to 9 am, 3 to 6 pm, 1pm to 2 am

BillBoards• Karachi,

Lahore, Islamabad, Rawalpindi, Faisalabad

Brand Activation - Concerts

Marketing Budget

Marketing Budget Breakup (PKR Mil)    

TVCs 50%            216 

Radio 15%               65 

Print 10%               43 

BillBoard 15%               65 

Brand Activation 10%               43 

Total (PKR Mil)   432

Sales Forecasting

Juice Market (Nectars and Still Drinks) stood at 128

million litres

Top Down Approach to forecast sales•Market growth at 13% CAGR in

2012•Expected beverage inflation is

estimated would be around 13% CAGR

•Olftrute Nutrina target market share of 15% in 2012

Quarterly Sales Projections

2011(A)

2012(Q1) 2012(Q2) 2012(Q3) 2012(Q4) 2012(E)

Juice Industry (JN & VASD) Million Liters

                 128 

                 33 

                   36 

                     37 

                     38 

                   144 

Market growth rate                

13%  3% 5% 3% 1% 13%

Engro Market Share 5% 7% 10% 13% 15% 15%

Engro Juice Sales                

6.38              2.33 

               3.56 

                 4.81 

                  5.67 

                16.37 

Beverage Inflation 17% 3% 5% 3% 1% 13%

Price per litre (PKR Mil)           

120.00          

123.60           

129.78             

133.67              135.01 

             135.00 

Engro Juice Sales (PKR Mil)

766.14

287.94

462.14

643.56

764.99

2,158.63

Income Statement Projection

Projected Income Statement (PKR Mil) Q1E (2012) Q2E(2012) Q3E(2012) Q4E(2012) (2012E)  Juices Segment Sales 287.94  462.14  643.56  764.99  2,158.63 

less: COGS (74% of sales)              213.07 

              341.98 

              476.23 

              566.10  1,597.39 

Gross Profit

74.86 120.16

167.33

198.90 561.24

less: Marketing and Distribution Expenses(20%)                57.59 

                92.43 

              128.71 

              153.00  431.73 

less: Administrative Expenses(2%)                  

5.76                   

9.24                 12.87 

                15.30  43.17 

EBITDA

11.52

18.49

25.74

30.60 86.35 less: Depreciation Expense+Amortization Expense

                  5.76 

                  9.24 

                12.87 

                15.30  43.17 

Profit Before Taxes (PBT)

5.76

9.24

12.87

15.30 43.17

less Tax (35%)                  

2.02                   

3.23                   

4.50                   

5.35  15.11 

Net Income

3.74

6.01

8.37

9.94 28.06

THANK YOU