INTRODUCTION

Engro Corporation is one of the leading Pakistani business conglomerates with stakes in the

fertilizer, food, power generation, petrochemicals, automation and terminal storage industries.

Having had undergone an employee led buyout in 1992 it has expanded phenomenal in the past

two decades. As a holding company its subsidiaries include:

Engro Fertilizers Limited

Engro Foods Limited

Engro Eximp Private Limited

Engro PowerGen Limited

Engro Polymers and Chemicals Limited

Engro Vopak Limited

ENGRO FOODS

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.

With an acquisition of Al Safa – a fast growing and established Halal meat brand – Engro Foods

is now venturing into North American market starting from Halal Foods category. The new

organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to

aggressively grow the business in this market.

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LASSI

Lassi is a popular and traditional yogurt-based drink which originates in the Punjab regions of

India and Pakistan. It is made by blending yogurt with water and Indian spices. Traditional lassi

(also known as salted lassi, or, simply lassi) is a savory drink sometimes flavored with ground

roasted cumin while sweet lassi on the other hand is blended with sugar or fruits instead of

spices.

OMUNG LASSI

Engro Foods introduced lassi brand called Omung Lassi in mid of June 2012.

Omung Lassi Slogan: “Guru Ho Ja Shuru”

Omung Lassi Flavors:

1) Namkeen Taskeen (Saltish Lassi)2) Methi Masti (Sweet Lassi)

Omung Lassi Competitors: No Competitor

Price: The price of Lassi is Rs. 20.

Promotion: Engro used the electronic media, bill boards, internet, vehicles for promotion.

Place: They target all over the Pakistan, mainly urban areas. Because people in rural areas prefer to make lassi with their own hands.

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TARGET MARKET

According Geographical aspect, it is targeting mainly urban areas.

According to Demographical aspects, they are targeting young boys and girls only.

According to Social Class, they are targeting the middle and upper middle class people.

As a dairy liquid it is targeted at SECs B and C.

Grade Social class Chief income earner's occupation

A upper middle class Higher managerial, administrative or professional

B middle class Intermediate managerial, administrative or professional

C1 lower middle classSupervisory or clerical and junior managerial, administrative or

professional

C2 skilled working class Skilled manual workers

D working class Semi and unskilled manual workers

EThose at the lowest levels of

subsistence

Casual or lowest grade workers, pensioners and others who

depend on the welfare state for their income

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TV COMMERCIAL

A Word From The Client

”The idea of launching Omung Lassi stemmed directly from a significantly untapped potential

for hygienic lassi which tasted like it was homemade combined with the convenience and

confidence of a safe packaging format. Traditionallylassi has been a popular drink for the masses

and it was strategically correct to position Omung Lassi under the portfolio of Omung since it

offers price and value to discerning consumers.” - Zulfiqar Ali Ansari, Group Brand Manager

– Dairy, Engro Foods

A Word From The Agency

“Our pitch was ‘make lassi sexy’ in a way that would connect with our key audience (young

men). The insight for our bullseye audience was that at this age they are looking for love; are

trying to make a statement with what they wear and the brands they consume; and their icons are

people like Salman Khan, Akshay Kumar and the likes. So we have come up with a character

called the Love Guru and given it a Pakistani feel. The platform for Omung Lassi is Pyaar Ka

Naya Ilaaj and the Guru  gives advice on how to find true love. Yes, and the solution he provides

is Omung Lassi.” - Neil Christy, CEO, Headlion

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SWOT ANALYSIS

Strengths

It has no competitors.

It has a relatively low price as products that comes under the umbrella of Dairy Omung

are relatively low in price.

It has a very attractive packaging.

Tetrapak to ensure it’s freshness.

Weaknesses

People prefer to make Lassi at home.

People doubt the freshness of a packed Lassi.

Opportunities

New variants

Increase market share

Threats

Strong competition from competitors in near future.

Inflation

Low Purchasing Power

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Questionnaire

Name:

Age:

1) Do you like to drink Lassi?a) Yesb) No

2) How often you drink Lassi?a) Dailyb) More than 3 times a weekc) Less than 3 times a weekd) I don’t drink it

3) Have you ever tried “Omung Lassi”?a) Yesb) No

4) Where did you first come to know about “Omung Lassi”?a) Through TV advertisement.b) Through a friend or relative.c) Through Bill board.d) Through internet.e) Any other source, please specify ________________.

5) Do you like the concept of packed Lassi?a) Yes b) No

6) Rate “Omung Lassi” according to it’s taste?a) Excellentb) Goodc) Averaged) Bad

7) Do you think Omung Lassi has a reasonable price?a) Yesb) No

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8) Rate Omung Lassi’s “Guru Hoja Shuru” TV advertisement?a) Excellent b) Goodc) Averaged) Below averagee) Cheap

9) Do you like the idea of aligning a drink like Lassi with “Love”, as Engro did in it’s marketing campaign?

a) Yesb) Noc) Not sure

10) Do you think; as a Lassi, it’s packaging needs to be changed as it has to be different from juices packaging?

a) Yesb) Noc) Not sure

11) Is it available in your nearby retail shop?a) Yesb) No

12) Rate your preference from 1 – 5 for any food brand? 1 for most preferable and 5 for least preferable!

a) Low Price ( )b) High Quality ( )c) Taste ( )d) Availability ( )e) Hygiene ( )

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SURVEY

1) Do you like to drink Lassi?

No

Yes

0 20 40 60 80 100 120

Q1

Q-1

2) How often you drink Lassi?

I don't

More than 3 times a week

Less than 3 times a week

Daily

0 5 10 15 20 25 30 35 40

Q2

Q2

3) Have you ever tried “Omung Lassi”?

No

Yes

0 10 20 30 40 50 60 70 80 90

Q3

Q3

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4) Where did you first come to know about “Omung Lassi”?

Internet

Bill board

Friend

TV ad

0 5 10 15 20 25 30 35 40

Q4

Q4

5) Do you like the concept of packed Lassi?

No

Yes

0 10 20 30 40 50 60 70 80

Q5

Q5

6) Rate “Omung Lassi” according to it’s taste?

Bad

Average

Good

Excellent

0 10 20 30 40 50 60 70

Q6

Q6

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7) Do you think Omung Lassi has a reasonable price?

No

Yes

0 10 20 30 40 50 60 70 80

Q7

Q7

8) Rate Omung Lassi’s TV advertisement?

Cheap

Below Average

Aveage

Good

Excellent

0 10 20 30 40 50 60

Q8

Q8

9) Do you like the idea of aligning a drink like Lassi with “Love”, as Engro did in it’s marketing campaign?

Not sure

No

Yes

0 10 20 30 40 50 60 70

Q9

Q9

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10)Do you think; as a Lassi, it’s packaging needs to be changed as it has to be different from juices packaging?

Not sure

No

Yes

0 5 10 15 20 25 30 35 40 45 50

Q10

Q10

11) it available in your nearby retail shop?

No

Yes

0 10 20 30 40 50 60 70 80 90 100

Q11

Q11

12)Rate your preference from 1 – 5 for any food brand? 1 for most preferable and 5 for least preferable!

Preference

Price QualityTasteAvailabilityHygiene

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WHY IT FAILED?

After doing extensive research, we came to the conclusion that there were mainly two reasons

behind it’s failure.

1) Advertisement: Engro has just targeted young people for this product however Lassi is a

drink which is loved by elders and kids too. Whether young or old, it is a drink enjoyed

by all age groups. You really can’t classify it as a ‘sexy’ drink, only aimed for young men

and women and it is definitely not ‘pyar ka naya ilaaj’. Also the way of communicating

message is not decent at all as they’ve associated their brand with a bit of cheapness.

Firstly, since we’ve stopped producing original stuff, it’s not surprising that this

commercial is a desi version of the Heineken Serenades campaign (not that the original is

any good either). Secondly, what are they really trying to say? What’s the point behind

‘Guru, ho ja shuru’? Who is the Guru? Is it the man dressed in the hideous blue jacket,

dancing away with women who are reminiscent of namkeen and meethi lassi-cum-love?

How can lassi be compared to love and also be the remedy for love at the same time?

Not only have they taken a long-established product, but also given it the wrong

characteristics. They’re targeting the age group whose prime objective in life (according

to the proposed strategy) is to find perfection in love. It’s not liqueur or an energy drink

for the youth that they can choose a specific target audience or even try to change the

characteristics of the product when it already has a deep-rooted image. Also, the ad

doesn’t really tempt the viewer into going to try the product.

Recently, Olpers also started a scheme where with every carton (containing 12 boxes of

Olpers milk) you would get four packs of Omung Lassi free. Apparently, companies have

to start implementing such promotions when their advertising strategy fails.

2) Taste: Many people whom I talked to said that they don’t like the taste of lassi, as it is

different from the genuine taste of a lassi. The taste fails to satisfy the taste of costumers.

During Pakistan/ India cricket match, Omung Lassi was ordered in bulk quantity.

Hundreds of students tried that out and just after taking a sip or two, they threw it into the

dustbin. It’s taste is more like that of a Salted\Sweetened Laban – a popular drink during

Summer and Ramazan in the Middle East.

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RELAUNCHING “OMUNG LASSI”

POSITIONING

Positioning is in the mind of the consumer and can be described as how the product is considered

by that consumer. When researching the positioning of a product, consumers are often asked how

they would describe that product if it were a person. We need to position this Lassi as a part of

their daily life. As a symbol of thirst quenching and freshness. When any person thinks of

Omung Lassi, the first thing that would come to his mind is it’s freshness. This affinity between

the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision

easier.

CHANGE IN TARGET MARKET

The market has been segmented by us geographically, demographically and according to the

social class. Geographically, we’d try only to target urban areas as this product won’t do any

wonders in rural areas because people there prefer to make lassi by their own hand. Apart from

that places like breakfast hotels, railway station would specially be preferred and Engro would

make sure to have their product at these places everywhere.

According to demographics, we’d try to target every age group because it is a drink loved by

everyone, elders and kids, not just by young men and women. So it is in appropriate just to target

young people. More importantly we’d try to make an impression on housewives.

According to the SEC(Socio-economic class), the company would target the same chunk of

costumers ranging from Middle class to Upper Middle class.

CHANGE IN PRODUCT DEVELOPMENT

As we find out during the research that people really don’t like Omung Lassi’s taste. As many

compared it with the middle eastern drink Laban, the production department has to change their

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way of manufacturing it and to make it’s taste more like a rich Lassi. This is very important for

the brand, as no matter how much brilliant promotion a company does, if it’s product is not

according to the expected value by costumers, they are not going to buy it again.

PRICING STRATEGY

As Engro’s product Omung Lassi has no competitors and since it follows the target market of

middle class and upper middle class people. It simply needs to follow cost-plus pricing. The

profit would be set to initial level to encourage the costumers to buy the product and try it out,

and when it’s equity would increase then we would slightly increase it’s price as well.

CHANGE IN ADVERTISEMENT

You don’t need rocket science for advertisement of a product like Lassi. What first comes in our

mind when we think of a Lassi. Is it “Love?” or is it the freshness of a Lassi. Instead of their

recent advertisement that everyone called cheap during a survey from mostly middle class and

upper middle class people, we would base their marketing campaign around the fact that the

drink itself is thirst quenching and refreshing in this hot summers, and would try to communicate

its healthy yogurt like properties.

Hence a tempting advertisement would be made targeting mainly people who has a fast life and

who travels a lot, and also those people who don’t have time to make it in home. They would

prefer a good quality product from a well known brand like Engro Foods.

CHANGE IN PACKAGING

Since Lassi is a dairy product and it is different from juices and other bevarages, we think that

square box is not suitable for it. Lassi is more of an open drink. So we have changed it’s

packaging strategy. Instead of a square pack, a glass shaped round tetrapak has been introduced

by us. Now you could either drink it with a straw or more preferably you could drink it by

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removing the upper cap of the tetrapak which would provide you real life-like scenerio, as most

of the people do not prefer to drink such a product with a straw.

Another change includes 2 variants of Omung Lassi. 250ml and 450 ml.

450 ml 250 ml

DISTRIBUTION STRATEGY

As Engro has a vast network of distributor all over Pakistan and it distributes the products along

retailers very effectively and time, so there is no need to make a change in it’s distribution

strategy. They just have to make sure about it’s freshness as I is dairy product.

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