Presenters

Junaid Shahid 5609

Mishal Aqdas 5617

Zuhair Qadri 5618

Zofishan 5626

Rameez Rana 5639

Muneeb-ul-Haq 5641

Arslan Gohar 5646

M.Aslam Sheraz 5611

BBA (Hons) 5th Semester

University of Education Multan, Pakistan

Background of the Organization

Engro stands for “energy for growth”.

Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olpers Lite, and Olpers cream and brought its new product in the market in 2009 which named is O’more

Engro Foods has set up two processing plants at Sukkur and Sahiwal.

The plant located at Sahiwal 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.

Board of Directors Engro's 13-member Board of Directors is

responsible for the overall supervision of the

company.

Hussain Dawood (Chairman)

Asad Umar (President)

Asif Qadir (Director)

Arshad Nasar (Director)

Shahzada Dawood (Director)

Israr Ahmed (Director)

Shabbir Hashmi (Director)

Khalid Mansoor (Director)

Rohail Mohammad (Director)

Khalid Siraj Subhani (Director)

Muhammad Aliuddin Ansari (Director)

Abdul Samad Dawood (Director)

Saad Raja (Director)

Vision

Engro Foods’ vision is

“Elevating Consumer Delight

Worldwide” and the Company

aims to generate a significant

portion of its revenue from

foreign operations.

Mission Statement

We exist to deliver quality food products, which exceeds our costumers (EFL’s) expectations. Our people are greatest assets and we value a market place, which inspires excellence in our teams. Our action reflects our pride in being environmentally responsible and good community citizen.

Objectives & Goals

Engro’s first priority is to fulfilcostumers needs and wants by providing them quality products like Olpers Milk, Omore’ Icecream, Olfruite etc. Second main objective of Engro is to increase the profit share of shareholders and get hold on a large market share.

EFL dreams to be BIG. Engro wants to be a major player in the food industry which is also evident in their vision, "Elevating Consumer Delight Worldwide".

Marketing Strategy

According to SMEDA Engro produce about 28 billion liters a year

Packaged Milk is still not that popular here Because of various socio economic factor 92% to 93% of milk is open milk

Before OLPERS Nestle MILKPAK was the king of the castle and Haleeb was second best

Sometimes Businesses become too comfortable with present situations and also forget strategic vision and analyzing the market and that is exactly what happened.

Marketing Strategy

The grass mowed under the feet of Nestle and Haleeb

when OLPERS (with huge financials) came in.

OLPERS did something else that was amazing; they

attracted, they strengthen and delighted their customers

into becoming more health conscious and purchase

savvy.

Now Olpers become one of the most recognizable

brands in Pakistan, and that to in just two years

Marketing Research Before the inception of the brand Olper’s,

AC. Neilson carried out a marketing research for Engro Foods.

1200 names were reviewed and analyzed before Olper’s was decided.

Once the brand was introduced the organization wanted to add more product lines to it.

So, 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.

Marketing Research

They 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.

The researchers conducted questionnaires to find the responses of consumers about Olper’s. They got a positive feedback from the customers who also encouraged them to invest further and to setup a new plant in Sahiwal.

Marketing Research

Through different research

methods the organization was

also able to find out the number

of competitors brands.

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.

Marketing ResearchThe products of Olpers in the

market are

Olper’s lite

Olper’s cream

Dairy Omung

Tarang

Dobala

Olfrute

Omore’

Olper’s milk

Tarrka

Owsum

Al-Safa Chicken

Values

Ethics & Integrity

People

Innovation

Community & Society

Consumer Centric

ValuesEthics & Integrity

Engro has transparent processes and open disclosure policy. They are doing their business activities and transactions with fairness and honesty.

People

Engro have a team of passionate people, they have intelligence and firm approach towards business. People of Engro have more chances to enhance their skills because Engro facilitate them with training, fun loving environment, necessary resources and facilities.

ValuesInnovation

Engro always encourages innovation by their people or from wherever they get anything new. It also boost up the confidence level.

Community & Society

Engro has always take in measure the safety of their people or the environment. They always consider it their responsibility to take care of their employees of local people so that no havoc could be cause to anyone or the assets of the community.

Consumer Centric

The basic target of any organization is their costumers. Engro is delivering quality to their consumers.

Segmenting and Targeting the

Market for Olpers

The milk sector has a market that has homogeneous taste and demand that is the consumers have similar preferences.

Milk should be clear and free from any impurities.

It should be carefully processed

Milk should be good for bones and health.

Segmenting and Targeting the

Market for Olpers

Olper’s market has been segmented according to

these things. Olpers marketers had a number of

options available to them when segmenting the

market for their products.

Demographic Segmentation

Psychographic Segmentation

Behavioral Segmentation

Segmenting and Targeting the

Market for Olpers

Demographic Segmentation

Olpers is meant for all the users in higher upper or middle class families. Olper’s products are not restricted to any particular age, gender or lifecycle stage.

Lower class wouldn’t want to buy the brand maybe because they are price sensitive or because they still believe lose milk is better than processed milk

Therefore it can be said that Olper’s had a image as a brand for high income earners. Due to that image it can be said that Olper’s milk target a specific social class who are health conscious and concerned about their weight.

Segmenting and Targeting the

Market for OlpersPsychographic Segmentation

Olper’s marketers have segmented the market who are goal-oriented and focused on their careers, and those who are looking variety in the milk sector.

For example the ads for Olwell ,focus on achievers who want to be successful, have high aims and are already doing quite well in their concerned fields.

Olper’s ads also target believers, traditional conservative people with concrete beliefs. Olper’s ads show the beliefs of healthy life with processed milk and plays on the emotional aspect more.

Segmenting and Targeting the

Market for OlpersBehavioral Segmentation

Olper’s products have been segmented on the basis of benefits that consumers seek in the milk.

Olpers ads are always based on the theme of family.

Olpers milk can be used in daily life.

Olpers can be used for all purposes like tea whiteners or to feed the animals.

Positioning the Brands 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 customer’s minds.

They have done this by taking a number of following steps:

Packaging of Olper’s Milk in red colour are quite different and distinctive from the typical green and blue packing used by other competitors.

The brand has been positioned as an all purpose milk that is meant for everyone, especially those who live life to the fullest, hence its tag line is ….

“jo dil khol kay jeetey hain unheen kay liyay hai Olper’s”

Marketing Mix

The process consists of four steps which are

as follows.

Product

Price

Place

Promotion

Marketing Mix

ProductNow we see the marketing mix of the successful brand of engrofoods which is O’more.

Core Product

Ice Cream- convenience product!

Actual Product

The brand- Omoré

27 flavors of ice cream in different shapes and quantities.

The product line

Frooze range of cheap ice creams for children

Range of family packs

Range targeted towards teenagers as well as adults.

Marketing Mix

The packaging style

Attractive and colorful

Available in various designs: cones, cups, tubs and bar sticks

High quality level

Meets hygienic and nutritious standards.

Augmented Product

Provides ingredients and nutrition information on the packaging

Contact information for comments and queries

Marketing Mix

PriceList price

Three different classifications

Frooze (5- 10- 12- 15) Rupees

Range of family packs (150- 120- 105)Rupees

Range of individual ice creams (10-15-20-30) Rupees

Discounts

They also offer discounts for distributors.

Credit Base System

In Pakistan, mostly businesses work on credit base system and they are also follow credit base system.

Marketing Mix

Place

Indirect distribution channel

Intermediaries before the final product reaches to the

customer

Transportation

Company has its own transportation system

Franchises

Increase sales of ice brand awareness

Marketing Mix

Promotion

Advertisement TV Bloopers

Sponsoring of TV shows

Madison an Vine technique

Streamers, Decoration of Lahore, Dropping pamphlets from planes

Print ads

Marketing Mix

Sales Promotion

Free samples at launch

Refrigerators to retailers

Banners and decoration in shops

Public Relations

Omore Basant Event, Lahore

Concerts

SWOT Analysis The word S is for Strengths, W is for

Weakness, O is for Opportunities and T is for

Threats.

It consists on these four which for as follows.

Strengths

Weakness

Opportunities

Threats

SWOT AnalysisStrengths

Engro’s Back

Engro has a great brand recognition all over the world. It has a big brand image in Fertilizers, IT and Infrastructure business.

PR with Farmers

The main benefit to Engro Foods is its good reputation among farmers due to fertilizers which has created a long term relation between farmers and organization.

SWOT Analysis

Positive Response from Customers

EFL had a big success in the very first year, it crossed 1.4 Billion sales, which showed the consumers belief and satisfaction with EFL’s products, for its good taste and quality proposition.

Strong consumer & product research

A strong consumer & product research was conducted before and after launching the Olpers.

To develop its future portfolios, EFL has hired various global research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.

SWOT Analysis

Third-Generation Plant

Worldwide fame of Engro.

Efficient milk collection system.

Keeping high quality standards.

Integrated distribution and warehousing facilities.

Successful related diversification.

Generic brand name of Olpers

Large market share of Engro innovative and chemicals.

Having Good reputation in the market by strong brand name i.e. Engro

SWOT AnalysisWeaknesses

Not 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

Low Quality Milk

Engro Foods Ltd don’t have there own milk centers. They collect loose milk from local farmers.

Packaging

Tetra packs is the only packaging company in Pakistan. Engro is using Tetra Pack for almost all their dairy products.

Milk collection & distribution costs

EFL’s 34 out of 40 milk-collection centers are located in Punjab, where as its milk processing facility is situated near Sukkur (Sindh) and Sahiwal.

Narrow brand portfolio

EFL’s brand consists of just 3dairy products i.e. Olper’s Milk, Olpers liteand Olper’s Cream. But EFLs competitors Nestle and Haleeb Foods have a diversified line of dairy products.

SWOT AnalysisOpportunities

Increased funding by Government

Government has decided to help the farmers by increasing their funding

This is also help ENGRO foods because of bad weather conditions there was lots of wastage of milk

Increased consumption of PLM

They create awareness for consumers through different advertising media. This will ensure the increase in the consumption of processed milk instead of lose milk

Awareness

High awareness about health and hygiene issues helps the milk industry to increase their product by Growing dissatisfaction with loose milk and increased processed milk consumption.

SWOT AnalysisThird largest producer of milk

This is good opportunity for Engro foods as there is lot of growth in this part of the sector.

Improving Economy

Population growth rate.

High urbanization rate.

High literacy rate.

Flexible government policies for food industry.

Have significant growth opportunities

Has sufficient capital to expand.

Has the potential to innovate and differentiate the company's products to sustain competitive advantage

May merge with other global businesses to eliminate competitors.

Having Capable of expanding into other markets of the world

SWOT AnalysisThreats

Competition

For Olper’s to stable in a market where the loyalties exist for such brands as Nestle and Haleeb. Such brands captured the milk industry for a long time and have a strong position in a minds of consumers.

Perceptions and Price Differentials

High inflation rate.

Low purchasing power.

Decrease in GDP growth rate.

Increasing interest rates.

Decreasing investment.

Recessionary period in business cycle

Competition with Nestle, Engro Foods and the new entrants.

Engro foods are currently facing an increase in Sales Tax.

Competitor Analysis

There are two main competitors

Milk Pak (owned by Nestle)

Haleeb Milk (from Haleeb

Foods)

Our Visit

References

Jabran Zabta

(Marketing Manager)

Faiz-ul-Hassan

(Asstt. Engineering Manager Filling)

Ahmad Raza

(Sales Coordinator)

Rehan Saeed Khan

(HR Manager)

Abdul Razaq

(Production Manager)