Olperss UHT Milk Final
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Transcript of Olperss UHT Milk Final
M arketing
M anagement
Final Project Topic:
Olper’s UHT Treated Milk
Presented To:Mr. Asad Awan
Presented By: Muhammad Jawad Raza Khalid 093905-042 Agha Mohammad Uzair 093905-008 Waleed Khan 093905-020 Zain-ul-Abdin 093905-048
Program:BBA (Hons)
Submission Date:
Saturday, January 22, 2011
U niversity of M anagement &
T echnology
2
ACKNOWLEDGEMENT
First of all we would like to thank Allah Almighty for his blessings upon all of us so that
we can complete this project successfully.
Secondly we would like to thank our resource person Mr. Asad Awan for helping us
throughout this project. He provided us complete knowledge and understanding of all the
topics covered in this project and made us capable enough to carry out this project. His
class lectures and notes really helped us a lot to complete this task. This report would not
have been possible without his kind guidance.
Finally we would like to thank our families for their support and trust on our capabilities.
3
TABLE OF CONTENTS
EXECUTIVE SUMMARY................................................................................4
COMPANY DESCRIPTION.............................................................................5
ENGRO FOODS - Beginning:..................................................................10
STRATEGIC PLAN........................................................................................14
SITUATION ANALYSIS................................................................................16
MARKET PRODUCT FOCUS.......................................................................26
MARKETING PROGRAM.............................................................................28
IMPLEMENTATION PLAN...........................................................................30
EVALAUATION & CONROL.......................................................................30
REFERENCES.................................................................................................31
APPENDIX......................................................................................................32
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EXECUTIVE SUMMARY
This report is about Olper’s UHT Milk. It starts off with the details of ENGRO Corporation and how & when Engro Foods came in to existence. The report tells history, culture, leadership and values of the ENGRO Corporation. The UHT milk is basically the Ultra-high temperature processing or ultra-pasteurization is the sterilization of food by heating it for a short time at a very high temperature to kill spores in milk. Then it tells the situation of milk industry in Pakistan. Because of various socio economic factors Packaged Milk is still not that popular here. It is the potential to see a need in the market and the drive to turn that need into profit that defines the success of a Good Business and Olper’s saw that need.
Milk is used for drinking, tea, desi ghee, yogurt and butter making. Milk is also used to make Khoya and different types of sweets. Milk processing companies use milk as a raw material to formulate different types of milk i.e. pasteurized milk, UHT milk, condensed milk, skimmed milk, milk powder, etc Different value added products like yogurt, ice cream, butter and cheese are also produced from the raw milk. The demand for processed milk has increased its share in quality conscious consumers.
During the last two decades, processed milk has achieved a good share in the milk market of Pakistan especially the metropolitan cities are the major markets for the sale of milk. Olper’s milk has targeted people of all ages and genders. And in social classes, they are targeting the upper and middle class families. Strong background of ENGRO Corporation has really strengthened the Olper’s brand by providing the huge investment, its relationship with farmers due to its fertilizer business and use of up to date technology. The Engro Foods Limited is not having its own dairy farms; it largely collects loose milk from farmers through its milk collection centers. The loose milk can not always be pure because all farmers may not provide the pure milk so there are chances that the quality of milk could be low which can effect its reputation. Due to hygiene factors and increasing health consciousness trend has created a lot of demand for processed milk so it’s a huge opportunity for Olper’s milk. Olper’s milk may have a strong background of ENGRO GROUP but still it’s new in the milk industry and is facing an intense competition with Nestle Milk Pack. Therefore Olper’s milk has to maintain its standards and should keep an eye on its cost so that no other (current or new arriving) competitor can acquire even a small chunk of its market share.
Olper’s milk was initially launched in 20 major cities of Pakistan and with its huge product acceptance it is now available in around 80 cities. The aim is to reach all the potential customers all over Pakistan. Olper’s milk (Engro Foods Limited) has already earned a good reputation in the dairy market but they are starving for more and want to become a fast expanding mega food company. They want to fully utilize the rapid growth opportunity available in the market by innovation, differentiation and maintaining standards. After the success of their dairy products, to which their customers testify, Engro Foods now also plans to venture beyond the dairy sector. In this pursuit, grain and fruit markets have been analyzed in great detail.
5
COMPANY DESCRIPTION
COMPANY PROFILE
Engro Corporation
Type Public (KSE)
Industry
Fertilizer
Food
Beverages
Chemicals
Polymer
Power Generation
Petrochemical
Founded
Basic Foundation: 1957 as Esso/Mobil
Joint Venture, Company Incorporated
1965 as Esso Pakistan Fertilizer
Company Limited
Founder(s) Ahmed Dawood
Headquarters Karachi, Pakistan
Area served Pakistan
Key peopleHussain Dawood (Chairman), Asad
Umar (President and CEO)
Products Engro Urea
Engro DAP
Engro Zorawar
Engro Zarkhez
6
Zingro
Olper’s
Olwell
Tarang
Omore Ice Cream
Owsum
Olfrute
SABZ
Avanceon
Engro Rupiya Certificate
Revenue PKR 30 Billion
Net income PKR 3,957 Million
Total assets US$1.9 Billion PKR 94 Billion
Total equity PKR 27 Billion
Employees 2,093 (December 2009)
Parent Dawood Group
Website http://www.engro.com
THE ENGRO CORPORATION
Engro Corporation is one of the leading Pakistani business conglomerates with stakes in the
fertilizer, food, power generation, petrochemicals, automation and terminal storage
7
industries. Having had undergone an employee led buy out in 1992 it has expanded
phenomenal in the past two decades.
In the interest of better managing and overseeing businesses of subsidiaries and affiliates
that are currently part of Engro’s capital investments, Engro Chemical Pakistan Limited
converted into a holding company structure. As part of this process, two major changes
occurred with effect from January 1, 2010; Engro Chemical was renamed as Engro
Corporation Limited and it transferred its fertilizer business into a separate wholly owned
subsidiary, Engro Fertilizers Limited.
Currently Engro Corporation’s portfolio consists of seven businesses which include
chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation,
foods, power generation and commodity trade. As a holding company its subsidiaries
include:
Engro Fertilizers Limited
Engro Foods Limited
Avanceon Limited
Engro PowerGen Limited
Engro Polymers and Chemicals Limited
Engro EXIMP Private Limited
Engro Vopak Limited
Beside providing the long term vision for the company and overseeing performance of the
subsidiaries and affiliates, Engro Corporation Limited is also responsible for allocation of
capital, management of talent, leadership development, HR guiding policies, leadership role
in public relations and CSR activities, control structures, legal and IT support.
STOCK TICKER:
Engro Foods Limited is a fully owned Subsidiary of Engro Corporation and is not traded on
the stock market.
AT A GLANCE (as of December 2009):
8
Total Employees: 928
Sales Revenue: Rs. 14,900 Million
Investments: Rs. 153 Million
Profit After Tax: Rs. (434) Million
COMMUNITIES:
We stand committed to sustainable business growth and ensure the safety of our people,
assets and community in which we operate. Engro Foods efforts are directed towards
poverty alleviation, environmental safety, and support for livestock sector. Some specific
initiatives include:
Community Empowerment through Livestock Development and Credit (CELDAC)
initiative in partnership with UNDP. Under CELDAC, over 1200 lady livestock
workers have been trained, contributing significantly to the social and economic
empowerment of women in rural areas.
Developing and implementing the concept of Dairy Hub in district Sahiwal, in
partnership with TetraPak. It provides concentrated training and facilities on animal
health, nutrition and fertility, as well as chillers and logistical arrangement, to
increase milk production capacity in a cluster of 20 villages.
COMPANIES:
Engro Foods Supply Chain (Private) Limited
9
DEPARTMENTS
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.
MILK PROCUREMENT (Process):
As all of their 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.
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.
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 liters 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.
10
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.
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 to
obtaining route permits and approvals, is done by this department.
ENGRO FOODS - Beginning:
21st century for Engro Corporation has far proved to be the most successful era in the
total life of Engro, from then onwards Engro has only faced success and never looked back,
2003 was the year of the establishment of Engro EXIMP, after which in 2005 Engro
decided to diversify their business more by venturing into the food business by establishing
Engro Foods Limited, which is now experiencing a great success and competing now with
international brands like Nestlé and Wall's Ice Cream
Engro also ventured into the "Power Generation" business by setting up Engro Energy
Limited in 2006, which later on was renamed as "Engro Powergen Limited" in year 2008. It
was established with the basic aim to play Engro's part to tackle the enrgy crisis in the
country.
In year 2007 Engro Asahi polymer divests its share in joint venture with Mitsubishi and the
company renamed as Engro Polymer and Chemicals Limited.
Recently in 2010, keeping in view the immense diversification of Engro Chemical Pakistan
Limited, it was decided to rename the company as Engro Corporation as the holding
company.
11
LEADERSHIP:
Engro’s leadership comprises of some of the most enterprising leaders of the corporate
world in Pakistan. These individuals are responsible for conceptualizing and articulating
goals that bring our people together in pursuit of set objectives. They lead the company
with a firm commitment to the values and spirit of Engro. In our journey to become a
profitable, growth-oriented and sustainable company, our management structure has
evolved to create a more transparent and accessible organization.
Hussain Dawood holds the seat of the corporation, Mr. Dawood is also the chairman of
Dawood Group Pakistan
Apart from the chairmanship, Asad Umar currently hold the position of CEO & President at
Engro Corporation from 2004 - present.
OUR CULTURE:
Engro is about the people who are a part of us. Our culture is dynamic and energetic, with
emphasis on our core values and loyalty of our employees. Our work environment
promotes leadership, integrity, teamwork, diversity and excellence.
The tone for our corporate culture and the importance of employees was set after the
Company was bought out by employees in 1991. As the Company grows, we are
determined to keep our culture open and transparent, and inclusive for all our employees.
OUR VALUES:
At Engro, we support our leadership culture through unique systems and policies which
ensure open communication, foster an environment of employee and partner privacy, and
guarantee the well being and safety of our employees.
Our core values form the basis of everything we do at Engro; from formal decision making
to how we conduct our business to spot awards and recognition. At Engro we never forget
what we stand for. Following are our 12 core values:
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Safety, Health & Environment
Ethics and Integrity
Leadership
Quality and Continuous Improvement
Enthusiastic Pursuit of Profit
External and Community Involvement
Candid and Open Communications
Enjoyment and Fun
Innovation
Individual Growth and Development
Teamwork and Partnership
Diversity and International Focus
ENGRO FOODS LIMITED
Engro Foods Limited is subsidiary of Engro Chemical Pvt. Ltd. which is one of the most
reputed enterprises in Pakistan with more than 40 years of diversified business operations in
the areas of fertilizer and chemicals. Engro Foods started its business operations in March
2006 and with the successful launch of Olper’s Milk, Tarang, Olwell, and Olper’s cream, it
has established itself as a major player in the foods business. Engro Foods has already set
up two processing plants at Sukkur and Sahiwal. With the ever expanding milk collection
network and processing facilities, the Supply Chain has geared us for the growing sales of
our products.
Engro has started milk processing facility to produce and market branded UHT milk, cream
and other milk products. The plant is located in 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
13
day. The plant has been established at a cost of Rs. 1 billion which provides direct
employment to 750 people. it started there operations in March 2006. Engro procure raw
milk supplies from Sindh and lower Punjab. They introduced their milk product with the
name of Olper’s in March 2006.
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.
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has
established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream
production facility in Sahiwal.
Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully
launched under the helm of Company’s dairy products. To support these brands and their
highest standards of quality, Engro Foods has invested heavily in milk processing and milk
collection infrastructure.
14
STRATEGIC PLAN
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:
“To help farmers maximize their farm product by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in Petrochemicals, Information Technology, Infrastructure and other Agricultural sectors. In pursuing the mission we shall at all time be guided in our conduct and decision making by our Core Values.”
Goals:
Non Financial Goals:
Olper’s milk (Engro Foods Limited) has already earned a good reputation in the dairy
market but they are starving for more and want to become a fast expanding mega food
company. They want to fully utilize the rapid growth opportunity available in the market by
innovation, differentiation and maintaining standards. They want to be an economical
brand. They are now researching to make a combination of good product with less price
then their competitors.
After the success of their dairy products, to which their customers testify, Engro Foods now
also plans to venture beyond the dairy sector. In this pursuit, grain and fruit markets have
been analyzed in great detail.
15
Financial Goal:
Financial goal of Engro foods is to reach 27billion PKR revenues in 2011. In 2010 it was
19 billion PKR. They hope to increase 8 billion PKR approx. in 2011.
Core Competency and Sustainable Competitive Advantage:
In terms of core competency Olpers seeks to achieve unique ability to provide high quality
cream milk and to deliver milk to the customers using manufacturing and distribution
systems.
To translate there core competencies into sustainable competitive advantage, the company
will work closely with key suppliers and distributors to build the relationships necessary to
satisfy high standards of customers.
16
SITUATION ANALYSIS
SWOT ANALYSIS:
STRENGTHS:
THE SUBSIDIARY OF ENGRO GROUP:
Olper’s is a brand of ENGRO Group which has helped it a lot in attaining a place in the
food market. The strong financial background of Engro Group has help Olper’s milk to
compete with industry giants like NESTLE and HALEEB.
RELATIONSHIP WITH FARMERS:
ENGRO Fertilizer is also a subsidiary of ENGRO GROUP and has a good market
reputation and relationship with farmers. This has helped a great deal to Olper’s milk for
gathering up milk from the farmers and to strengthen its relationship with farmers.
USE OF LATEST TECHNOLOGY:
Olper's only has the third-generation UHT milk plant in the country. It is the only plant in
Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium
quality and hygiene.
PRODUCT ACCEPTANCE IN THE MARKET:
In the very first year, Engro Foods Limited crossed 1 billion sales figure which shows
customers’ satisfaction upon Olper’s milk.
STRONG MARKET RESEARCH:
In today’s fast growing and heavily competing industry market research has a great
importance. Olper’s has done a good market research which has helped it to find out
consumers’ preferences and to compete industry giants.
17
WEAKNESSES:
NO DAIRY FARMS:
The Engro Foods Limited is not having its own dairy farms; it largely collects loose milk
from farmers through its milk collection centers. The loose milk cannot always be pure
because all farmers may not provide the pure milk so there are chances that the quality of
milk could be low which can affect its reputation.
PACKAGING:
Olper’s milk has to depend upon Tetra Pack Packaging as it’s the only option available in
market for packaging. Purchasing packaging material from other company may slow down
its sales (due to non availability of packing material) and also with the rise in price of
packaging material, milk cost may also rise.
MILK COLLECTION & DISTRIBUTION COSTS:
The milk collection centers for Engro Foods are located far apart from the main plant so in
this way cost of collecting milk and bringing it to plant has increased. As more time is
consumed to bring milk from collection centers to plant therefore chance of milk getting
spoiled have increased.
OPPORTUNITIES:
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.
AWARENESS
Due to hygiene factors and increasing health consciousness trend has created a lot of
demand for processed milk.
18
URBANIZATION TREND:
As day by day urbanization trend is becoming popular and people are moving more towards
cities; it has created a huge opportunity for Olper’s milk to make a mark as most of its
target market belongs to urban areas.
THREATS:
COMPETITION
Olper’s milk may have a strong background of ENGRO GROUP but still it’s new in the
milk industry and is facing a intense competition with Nestle Milk Pack. Therefore Olper’s
milk has to maintain its standards and should keep an eye on its cost so that no other
(current or new arriving) competitor can acquire even a small chunk of its market share.
NEW ARRIVALS:
There is always a threat of new arrival as people are becoming more health conscious so
demand for processed milk is increasing day by day so the market is attractive. Therefore
new companies may enter in to this industry and may acquire some of Olper’s potential
customer.
LAW AND ORDER SITUATION OF PAKISTAN:
Currently the law and order situation of Pakistan is highly uncertain. Anytime there can be
strikes, road blocks and even riots. This can disturb the cycle of Olper’s milk as the loose
milk may not reach plant on time or may be the supply cannot reach to the customers on
time i.e. the fear of shortage or unavailability. This may cause the rise of sale of the
products of other competitors.
INDUSTRY ANALYSIS
UHT MILK:Ultra-high temperature processing, (less often) ultra-heat treatment (both abbreviated
UHT), or ultra-pasteurization is the sterilization of food by heating it for a short time,
around 1–2 seconds, at a temperature exceeding 135°C (275°F), which is the temperature
required to kill spores in milk. The most common UHT product is milk, but the process is
19
also used for fruit juices, cream, soy milk, yogurt, wine, soups, and stews. UHT milk was
invented in the 1960s, and became generally available for consumption in 1970s. High heat
during the UHT process can cause Maillard browning and change the taste and smell of
dairy products.
UHT milk has a typical shelf life of six to nine months, until opened. It can be contrasted
with HTST pasteurization (high temperature/short time), in which the milk is heated to
72°C (161.6°F) for at least 15 seconds.
MILK INDUSTRY OF PAKISTAN:
The milk sector in Pakistan is Huge and that is putting it lightly. According to SMEDA we
produce about 28 billion liters a year and Packaged Milk is just a dent on this number. 92%
to 93% of milk is open milk. Country’s annual milk consumption is around 180,500 tones
including fresh milk. Because of various socio economic factors Packaged Milk is still not
that popular here. It is the potential to see a need in the market and the drive to turn that
need into profit that defines the success of a Good Business and Olper’s saw that need.
Milk is used for drinking, tea, desi ghee, yogurt and butter making. Milk is also used to
make Khoya and different types of sweets. Milk processing companies use milk as a raw
material to formulate different types of milk i.e. pasteurized milk, UHT milk, condensed
milk, skimmed milk, milk powder, etc Different value added products like yogurt, ice
cream, butter and cheese are also produced from the raw milk. The demand for processed
milk has increased its share in quality conscious consumers. During the last two decades,
processed milk has achieved a good share in the milk market of Pakistan especially the
metropolitan cities are the major markets for the sale of milk.
The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which
pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural
areas across Punjab, processing the milk through UHT (Ultra-High Temperature
Processing) treatment, and selling it to consumers in uniquely colored triangular and
rectangular packs designed to prolong the milk’s quality. Milk Pak’s “Milk Packs” were
very well-received and the brand soon became synonymous with quality milk. Its first real
competition came in the form of Haleeb, which introduced distinctively blue tetra packs to
the market in 1986.
20
Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the
dairy market in the world’s fourth largest milk producing country for nearly two decades—
without any real sustained competition. Engro Foods, in contrast, had only recently been
established by Engro—a traditional giant in Pakistan's chemical and fertilizer industry.
Branding experts could not imagine how Olper’s could distance itself from its parent
company’s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end
of 2006, sales for Olper’s Milk had reached Rs.1 billion (approximately US$ 15 million)
and in 2008, the brand has a market share of close to 22 percent—second only to Milk Pak
(estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the
multi-billion rupee packaged milk category meant business.
Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's
marketplace. By 2006, the dairy milk category was
growing at 20 percent annually, and Milk Pak and Haleeb
were well-entrenched brands with distinctive colors and
brand promises of providing high quality, natural and
healthy milk. Milk Pak was identified by its green and
white packaging—the colors of the country—and offered
a brand backed with the strong equity of Nestle, coupled
with its own traditional heritage. Haleeb was recognized
as the blue brand, and professed to have the "naturally
thickest" milk. With the market dominated by two strong, familiar, and widely respected
brands, the marketplace appeared completely impervious to newcomers.
OLPER’S ENTRANCE IN MILK INDUSTRY OF PAKISTAN:
Olper’s, however, stepped into the foray by launching a massive campaign that started off
with an introductory slice-of-life television commercial featuring some of the biggest stars
in Pakistan. Billboards went up at key locations in the major cities, and soon the brand had
become a voice above the media clutter—a voice that differentiated Olper's brand from the
others.
21
Rafey Nisar Zuberi, the marketing manager for Engro Foods, says, “From the onset, we
wanted to introduce a true paradigm, bringing the dairy brand to the fore.” The name itself
made it sound like a foreign brand, giving the perception of quality, and was unlike
anything previously experienced by Pakistani
consumers. Rafey continues, “We wanted
consumers to consider Olper’s as a
contemporary and modern brand, and all of
our communication and brand attributes were
geared toward ensuring that end.”
To a large extent, they were successful. “It
was certainly a campaign with its own unique
identity,” says Farah Jamaluddin, a media
professional. “All of their communication was
aesthetically on the mark and had a sense of
synergy about it,” she explains.
Olper’s went with red as its color—a color far removed from the greens and blues that had
become synonymous with packaged milk. “Picking red as the brand color was by far an
inspired choice,” says Zara Shaheen, an Olper’s customer. “It created a whole new
perceptual niche for Olper’s,” she adds. The color also helped to enhance the in-store
visibility and presence for Olper’s packaged milk, and the brand was instantly disassociated
from its competition.
The brand also worked to ensure it established an image of being a healthy and natural
product. Its optimistic and vibrant tag line—“Good Morning Life”—along with the unique
red color, became the soul of the Olper’s brand identity across various media outlets. Rafey
explains the choices behind promoting the brand attributes, “We are big believers in the
primary tenet of marketing: getting to know your consumers through research.” He
continues, “For Olper’s, everything from the color and the packaging, to the recipe and the
name, was thoroughly consumer tested.”
The campaign highlighted and expanded upon the various occasions in which milk could,
and should, be enjoyed—and kept driving home that message through its various
promotions. Olper’s became the "All Purpose Milk" and could be consumed with breakfast
22
or blended with tea (arguably the most popular beverage for the masses in Pakistan), and
appreciated by all members of the family. Engro Foods utilized a dynamic campaign, and
during Ramazan (the Muslim month of fasting), molded its message to talk about the "All
Purpose" nature of their brand during both Iftaar (breaking of the fast at dusk) and Sehree
(pre-dawn food before the fast). “We are aiming to own the religious month and our special
edition packaging, Ramazan relevant ATL (Above The Line—television, radio, etc.) and
tailor-made iftaar activations, are aimed at building the necessary association we want in
consumers’ minds,” Rafey points out.
Other avenues of BTL (Below The Line—brochures, flyers, etc.) have also contributed to
the brand’s success. The World of Olper’s, for example, involves reaching out to the
different locations in various cities and having the housewives participate in learning and
showcasing milk-based recipes. “The intention is to purely build trial experiences,” says
Rafey. “We are in our third year, and so far we have had close to 350,000 contacts,” he
adds with pride. The Olper’s Consumer Relationship Party is another ongoing BTL based
program, which intends to create and maintain loyalty amongst the brand’s users.
In its launch, Engro Foods has made a conscious and concerted effort to distance its milk
brand from its parent company’s chemical and fertilizer roots to ensure that no negative
connotations or cross-pollination of brand identities were manifested in the minds of
consumers. Interestingly though, the company has been able to use Engro’s historical
equity with rural farmers positively toward growing its milk collection network in the
provinces of Sindh and Punjab.
“Our milk collection network has grown exponentially post launch,” says Rafey. “So much
so that we reached our supply capacity within six months and had to begin using a second
UHT plant within three months,” he adds. Today, Engro Foods aims to become the only
company to utilize all of the milk collecting areas in Pakistan and also plans on developing
the biggest dairy farm in the country. The company’s reputation as a local giant actively
involved with community welfare in remote areas has also been a positive add-on for Engro
Foods.
Evidently, Olper’s has woken up the competition. Milk Pak responded with campaigns of
its own to reaffirm the positive equity of its brand and has largely focused on a message of
23
health, vitality, and strength through quality milk. Haleeb implemented a response as well.
Despite dwindling market share, Haleeb increased its marketing in the media and
commitment to promoting its brand. Also, newcomers such as the generically-named Good
Milk and Pakola Milk have tried penetrate the market, but without much success. Rafey
comments on the increasingly competitive landscape, “Olper’s is very strong in terms of
consumer quality perception… our monthly blind taste tests show that consumers rate
Olper’s significantly higher than Milk Pak and Haleeb.”
With Olper’s, Engro Foods has established a strong regional presence and intends to
increase that footprint over the next few years. Within the dairy market, the FMCG (Fast
Moving Consumer Goods) company now has a diverse portfolio of products ranging from
different types of cream to premium low fat milk, and its future appears promising—as long
as Olper's continues to understand its consumers and follow through on that knowledge.
Rafey underscores the company’s direction for the brand: “When we launched, we wanted
to be the market leader in five years.” Given that the brand is considered one of the fastest
growing FMCG brands in Pakistan, it could well be achieved.
COMPETITOR ANALYSIS
MAJOR COMPETITORS:There are three main competitors of Olper’s milk which are as follows:
Nestle Milk Pack
Haleeb Milk
Good Milk
NESTLE MILK PACK:MILKPAK is standardized UHT milk that benefits from NESTLÉ’s expertise in bringing
you the very best in health, wellness and nutrition.
MILKPAK is a trusted brand known throughout the
country for its nutritious wholesome goodness and
pure natural taste. To secure a happier and healthier
future for your family, you need the support of a
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strong partner like MILKPAK, now fortified with extra strength of Iron, Vitamin C and
Vitamin A that keeps you and your family strong!
Iron as an essential mineral helps in the formation of healthy blood and strengthens your
immune system. Vitamin C helps the absorption of Iron in the body and Vitamin A is
important for clear vision.
The addition of Iron and Vitamins has enhanced the nutritional value of MILKPAK while
retaining the same delicious taste. One glass of MILKPAK fulfills 20% Iron, 41% Calcium,
18% Vitamin A and 20% Vitamin C of your daily requirements as per Nutritional
Reference Values, CODEX Alimentarius.
HALEEB MILK:
Haleeb is also a well known brand name for UHT milk. Haleeb is
Pasteurized, Standardized, and Homogenized and Ultra Heat Treated milk
of the highest standards. Haleeb is available all over the country in 1 Liter,
500 ml and 250 ml Tetra Packs. When you buy Haleeb you can be assured
of the best quality milk money can buy. Haleeb is standardized to 3.5%
Butter Fats and 8.9% SNF (Solids Non Fat) as prescribed by Pakistan
Pure Food Laws. It is the thickest milk in Pakistan.
GOOD MILK:
Shakarganj Food Products has developed an elaborate system of
collecting milk directly from the farmers on a daily basis, ensuring
freshness of the product. This process ensures zero microbial activation,
while preserving maximum flavor, taste, and nutritional value without
the use of any preservatives. The product, good milk is standardized at
3.5% fat and 8.9% SNF, and has a shelf life of 90 days without
refrigeration. It comes in convenient 1,000ml, 500ml and 250ml Tetra
Brik packing.
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Market Share:
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MARKET PRODUCT FOCUS
They will do the market segmentation in order to properly understand and know the target
customers of Olper’s milk.
SEGMENTATION
DEMOGRAPHIC SEGMENTATION:
Demographic segmentation means the segmentation on the basis of age, gender and income
level etc.
Income level is the level by which our social classes are determined. Like lower class,
middle class or upper class.
Olper’s milk has targeted people of all ages and genders. And in social classes, they are
targeting the upper and middle class families. The lower class families can not be the target
market of Olper’s milk due to the affordability issue. In this case lower class is the labor
class whose monthly income is around less then PKR 10,000.
Lower class a class of people in a society characterized by low income, low level of
education, high unemployment and, as a result of these, a low social status
PSYCHOGRAPHIC SEGMENTATION:
Psychographic segmentation means the segmentation on the basis of personality traits,
lifestyles, interests, opinions etc.
Life style is a manner of living that reflects the person's values and attitudes.
An opinion is a subjective statement or thought about an issue or topic.
Olper’s milk has targeted people who are goal oriented and focused on their careers and
those who are conscious about their own health and health of their families.
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BEHAVIORAL SEGMENTATION:
Behavioral segmentation means the segmentation on the basis of benefit sought, purchase
occasion and loyalty status etc.
Olper’s milk is used by its customers for all purposes for example to drink, make tea, butter
etc There are also loyal customers who always purchase the same brand and some are the
less loyal users who seek variety. Some customers are heavy users and they use it to make
tea , to make butter and to drink everyday and some use Olper’s milk only for tea etc
POSITIONING
Olper’s milk has been positioned as all purpose milk for those who love life and who are
ambitious and want to live a healthy life.
Here are the tag lines for Olper’s milk:
“Jo Dil Khol Kay Jeetay Hain – Unhee Kay Liye Hai Olper’s”
&
Suba-Bakhair Zindgi – Good Morning Life
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MARKETING PROGRAM
The four marketing mix elements of Olpers marketing program are detailed below.
PRODUCT:
Olper’s UHT Milk
Olper’s milk is Engro foods’ standardized and homogenized pure UHT (Ultra heat treated)
milk with 3.5 % fat and 8.9 % solid non-fats. It is a 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. Olpers
is enriched with cream as well.
PRICE:
Product Detail Price
Olper’s milk [ ¼ Liter] 20
Olper’s milk [½ Liter] 38
Olper’s milk [ 1 Liter] 70
Olper’s milk [1½ Liter] XL 98
PLACE:
Olper’s milk was initially launched in 20 major cities of Pakistan and with its huge product
acceptance it is now available in around 80 cities. The aim is to reach all the potential
customers all over Pakistan.
PROMOTION:
Olper’s milk has been properly advertised by using different modes of promotion which has
helped a lot in creating product awareness. As the competition was tough in the market
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therefore proper and aggressive promotion strategy was the need. The milk has been
advertised through print media (newspapers, brochures) TV ads, Radio ads, and Billboards
etc.
PACKAGING:
Olper’s milk is using Tetra Pack packaging in attractive colors especially red, blue and
white in the following sizes:
Product Detail Price Packaging
Olper’s milk [ ¼ Liter] 20 27 packs per shrink-wrapped tray
Olper’s milk [½ Liter] 38 12 packs per shrink-wrapped tray
Olper’s milk [ 1 Liter] 70 12 packs per carton
Olper’s milk [ 1½ Liter] 98 6 packs per carton
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IMPLEMENTATION PLAN
Olpers has just launched Olpers Milk in [ 1½ Liter] XL size. None of their competitors has
launched milk in this size till date. Olpers is the only UHT treated Milk provider who has
launched XL [ 1½ Liter] size for their customers. Because most of population of Pakistan
belongs to middle class so due to rapid change in the prices of almost everything in
Pakistan the customers now spend less in order to meet their needs. Olpers felt that change
of consumption pattern of the consumers and they introduced a quite cheaper milk pack in
order to satisfy their consumer needs. The price of [ 1½ Liter] Olpers Milk is much lesser.
So they felt a need and they fulfilled it.
Targeted market is the middle class people of Pakistan with monthly income around 25,000
to 40,000. Due to rapid up lift of the prices no one has been able to buy everything they
want so they now have started spending less on everything. So introducing [ 1½ Liter] XL
size milk is a very good idea as it caters many problems faced by the customers.
EVALAUATION & CONROL
Control system for this project is the same for other dairy products. They make a sales sheet
in order to see the sales of XL size olpers with the other sizes of olpers. Olpers has
distributors’ hired for this project. They have divided distributors on the basis of efficiency
of the distributor. Monthly sales targets have been given. This depends on distributors’
infrastructure, efficiency, experience, business knowledge. City has been divided into areas
and management has decided how many distributors are going to be hired for a particular
area. After distributors are hired a company representative checks on all the distributors
randomly to see if there are operating as they were directed. It’s a random check every
week. So definitely a check is there on the distributors. They have been keeping a close eye
on this project and so far it is going very good.
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REFERENCES
http://www.engro.comhttp://www.engro.com/our-businesses/engro-foods-limited/http://en.wikipedia.org/wiki/Engro_Corporationhttp://www.brandchannel.com/features_effect.asp?pf_id=445http://en.wikipedia.org/wiki/Ultra-high-temperature_processinghttp://pakmediablog.net/110/and-then-there-was-Olper’s/http://www.nestle.pk/brands/nestle-milkpak.aspxhttp://www.angelfire.com/biz7/chexports/haleeb_milk.htmhttp://viewstonews.com/index.php/pakistan-milk-to-be-exported-to-the-world/uncategorized
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APPENDIX
Altaf AhmedZonal Sales Operation OfficerCell# 03015475855Email: [email protected]: Engro Foods Limited10-C Model Town Lahore, Pakistan
M Faysal IshratArea Sales ManagerCell# 03008118960Address: Engro Foods Limited10-C Model Town Lahore, Pakistan
Fraz Ahmed AbbasiBranch Activation ManagerCell# 03018560503Email: [email protected]: Engro Foods Limited10-C Model Town Lahore, Pakistan
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