Beruflich Dokumente
Kultur Dokumente
Porter
s Five
Models
Analysi
s
The assignment is about the Engro food and some of its product
in which the porters five models analysis is applied, in which
they know about the different steps applied on a Engro food.
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Engro Food
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Olpers
Omore
Tarang
Desi ghee
OLPERS
Engro Foods had only recently been established by Engro a traditional giant in Pakistans
chemical and fertilizer industry. Engro Foods launched Olpers Milk after long tenure of
consumer research and time and money consumption. During this time they are continuing
observing the issues with the packed milk. After three years of their launch Olpers Milk gain
reputation among consumers and now currently holding 30 percent of market share. Within the
dairy market, company now has a diverse portfolio of products ranging from different types of
cream to premium low fat milk.
The packaged milk category was originated in 1981 by 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. By 2006, the dairy
milk category was growing at 20 percent annually. Brands like Milk Pak (owned by Nestle) and
Haleeb Milk (from Haleeb Foods) had led the dairy market in the worlds fourth largest milk
producing country for nearly two decades without any real sustained competition. 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. Haleeb was recognized as the blue brand, and professed to
have the naturally thickest milk.
Olpers has woken up the competition. Milk Pak responded with campaigns of its own to
reaffirm the positive equity of its brand. Haleeb implemented a response as well. And Olpers
stars cutting its market share after competition become fierce.
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OMORE
In summers, beverages and ice cream brands invest extensive campaigns; so they started
popping up on our television screens. Omore despite the fact that it is a totally local in
comparison to its competitor i.e. Walls has achieved a good market share as the annual report
shared by Engro Foods recently.
A Pakistani ice cream brand by Engro Foods Limited was launched in the year 2009. Initially, it
targeted Punjab and the major cities like Lahore & Islamabad with a serving of 4.5 liters each
year. Later it entered Sindh and primarily Karachi after two years of its launch; the city is one of
the potential hubs for frozen desserts and ice creams.
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TARANG
Pakistan's No. 1 tea-whitening brand, Tarang is a specialized tea creamer that makes the perfect
cup of tea guaranteed to transport tea-lovers into a state of sheer bliss any time of the day. The
only tea-creamer that combines convenience with lasting quality and real value for money,
Tarang is available in a liquid format in 6 different SKUs appealing to a mass audience
nationally. Tarang is not only the market leader in both the STC and UHT Dairy categories but
is also Tetra Pak's 6th biggest global brand. This excellent performance has come about as a
result of not only the astute identification of a market need, but one that was manoeuvred with
perfect timing so as to provide consumers with exactly what they were asking for.
Compounding this effect was a brand position that hit right at the heart of the target market,
reeling them with the idea of being "Chai Ka Sahi Jor", and revitalizing the drinking customer
by taking them to a state of 'bliss-tea-tude'.
With its distinctly fresh aroma, rich taste and strong focus on enhancing the tea-drinking
experience for everyone, Tarang has evolved into our biggest and most profitable brand since its
launch in 2007, after securing a firm place in the hearts of millions of tea-enthusiasts all across
Pakistan.
DESI GHEE
Launched in 2007, Olper's Tarrka is our premium desi ghee distinct for its pure flavor and
aroma. A leading asli desi ghee brand that is extracted from milk, a dash of Tarrka in your
favorite cuisine is all it takes to bring out the flavor of your food and leave you craving more.
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CAPITAL REQUIRMENTS
Competing in a new industry requires resources to invest .production of packed products
requires huge investment of financial, human, technical, and marketing resources. At the
moment Engro Olpers have some threats like from new entrants goodmilk product of
shskargang food.
ECONOMY OF SCALE
Economy of scale determines entry because they force potential competitors either to enter on a
large scale bases (a costly or perhaps risky move) or to accept a cost disadvantage. Moreover,
new entrants in the pasteurized milk business may encounter scale related barriers not just in the
production, but in the advertising marketing, distributing, financing and raw milk purchasing as
well Engro foods achieved its breakeven in 2003.
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NUMBER OF SUPPLIERS
Raw milk is standard commodity and is available in the open market from a large number of
milkmen. If anyone refuses to sell its product then company can buy it from others who are
already willing to sell to company.
BACKWARD INTEGRATION
Another reason of low bargaining power is that no buyer or distributor has the resources to start
involve in backward integration.
AVAILABILITY OF SUBSTITUTES
This one is pretty straight forward, for there are plenty of substitutes in the food industry. Most
large food companies offer similar suites of services. Companies focusing on niche areas
usually have competitive advantage, but this advantage depends entirely on the size of the niche
and on whether there are any barriers preventing other firms from entering.
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