PRINCIPLES OF

MARKETING

SUBMITTED BY

TABLE OF CONTENTS

EXECUTIVE SUMMARY

BACKGROUND OF THE COMPANY

ENGRO FOODS (PVT) LIMITED (EFL)

BOARD OF DIRECTORS
BRANDS
AFFILIATES.
VALUES
MISSION STATEMENT..
VISION STATEMENT.
COMPANY OBJECTIVES

2
2
3
3
3
4
4
4

MARKETING PLAN

CURRENT MARKET SITUATION

MARKET DESCRIPTION
PRODUCT REVIEW FOR OLPERS MILK
SEGMENTATION AND TARGETING.

5
6
6
6

MARKETING MIX
PRODUCT.
PRICING..
PLACEMENT
PROMOTION

10
10
11
12
13

RECOMMENDATIONS

15

CONCLUSION

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EXECUTIVE SUMMARY

The main objective of our observation, research and study

was to obtain an analysis of the marketing mix for Olpers
Milk owned by Engro Foods. Engro is essentially an agrobased company that has a holistic approach to business
development. In 2005, the company took a major business
diversification initiative by launching its wholly owned
subsidiary Engro Foods Limited (EFL). During 2006, EFL
launched UHT milk and cream under the brand name
OLPERs and HCLF milk under the brand name OLWELL.
EFL plant located in Sukkur was set up at a cost Rs 1.0
billion and commenced commercial production in March
2006. Another plant near Sahiwal in the Punjab, has just
been completed. The EFL plan envisages a fast track growth
model, driven by innovative launches to command a product
range across the dairy spectrum backed by compatible milk
collection infrastructure and top end in the distribution of
these products. EFL is well positioned to become a
substantial player in the dairy sector during the next few
years. Though the launch is no doubt aggressive but
competition has also turned tougher. In the short span of
time since its launch, the company has recorded exceptional
growth. Its premium, all-purpose milk- Olpers has managed
to acquire 22 percent of market share and is poised for
further growth.

BACKGROUND OF THE COMPANY

ENGRO FOODS (PVT) LIMITED (EFL)
Engro Foods Limited is subsidiary of Engro Chemical Pakistan 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 Olpers Milk, Tarang, Olwell, and Olpers 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.
They believe that their recent successes will take them to their goal:
To be one of the biggest players in the food business. Our aim is to
dominate the food business, and to achieve this we will settle for
nothing less than the cream!

BOARD OF DIRECTORS

BRANDS

AFFILIATES

VALUES
INTEGRITY: We have an open disclosure policy and transparent processes.
All our business activities / transactions, are carried out honestly and with
fairness.

OUR PEOPLE: We have passionate people with intelligent and firm

approach towards business. To facilitate these people we give them
challenging opportunities, training, fun loving environment, necessary
resources and facilities. We publicly recognize our talent.

INNOVATION: Innovation is the way of life at EFL. It is valued, encouraged

and rewarded in all aspects of our operations.
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CSR: We stand committed to sustainable business growth and ensure 100%

compliance of CSR by ensuring the safety of our people, assets and the
community in which we operate. EFL takes significant strides in poverty
alleviation - both rural and urban, environmental safety and build up of
farming expertise.

CONSUMER CENTRIC: Consumer is the reason for our existence as a

business.

PEOPLE AT EFL
People at EFL are very dynamic and vibrant with an attitude of challenging
the norms, at the same time these people are highly professional, ethical
and result oriented. These are people who want to shine, make a name for
themselves and for that they are willing to go the extra mile.

EFL DREAMS
EFL dreams to be BIG. We want to be a major player in the food industry
which is also evident in our vision, "Elevating Consumer Delight
Worldwide". EFL wants to challenge the industry norms and surprise
whoever has eyes on EFL.

MISSION STATEMENT

To provide the best quality of low fat and high

calcium milk and milk products, because the
consumers deserve the best and we do not
compromise anything less than the best.

VISION STATEMENT

To become the pioneer icon in Tetra Pak milk

products business.

COMPANY OBJECTIVES
The company has set some objectives in order to cater the challenges faced by the
organization through diversification and other complications.

To provide quality and continuous improvement in our products.

To be diversified and focus globally.

To provide partnership and team work working environment.

To work for individual growth and development.

To come with new and innovative ideas.

To carter needs of the people by providing them safe and healthy

lifestyle.

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MARKETING PLAN
CURRENT MARKET SITUATION
The category that we have chosen is the milk industry, which includes
various forms of milk being consumed in Pakistan. These different forms
serve as competitors and each of them cater to a particular target
market and all of them are profitable within their scope of services. We
have classified the competitors as following:

Loose milk major competition and the most widely consumed

category.

Packaged milk the second largest category mostly serving the

urban population

Powdered milk a very small category serving niche i-e infants

and children in the urban population.

Flavored milk again a niche market serving

Low fat milk also a niche market

Nestle Milk Pak is the market leader in tetra Pak milk, followed by Olpers
which is then followed by Haleeb and so on so forth including Nurpur,
Good Milk, Dairy Queen etc. but these three brands were found at all
shops placed in most captivating shelf positions. In the category of low
fat milk, again these three companies compete with their respective
brands. In case of powdered milk, we have NIDO and Everyday. In case
of flavored milk, we have Pakola as the most prevailing brand right now.

CONSUMER PERCEPTIONS
In order to come up with the actual market findings, we decided to
conduct a small-scale market survey. We went up interviewing five milk
retailers from two areas of Karachi, i-e North Nazimabad and Gulshan-e-

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Iqbal. In all we interviewed five milk sellers; two from local loose milk
shops and three from retailers selling packaged and powdered milk only.
After this survey, we got to know that milk carries high brand loyalty.
Consumers who are the users of loose milk will always opt for loose milk
only, no matter how strong the campaigns and advertisements are for
those of packaged and powdered milk and vice versa.
This is because of the different perception that the consumers carry in
their minds of each category. We will summarize the generalized concept
as follows:

Packaged milk is highly processed therefore hygienic and convenient

to use as it is in the ready form.

Loose milk is pure in ingredients and carries the natural form

therefore is healthy as compared to packaged milk.

Powdered milk is better as milk whiteners and for infant use as the
quantity can be increased. This means you can make 1.5 liters from
small quantity of powder but the quantity is exactly measured in
packaged and loose milk both.
Consumers having low purchasing power cannot afford to have
packaged milk even if they want to as there is a difference of Rs.10
Per liter.
These are some of the perceptions that we came across while talking
to the consumers and retailers but of course there are exceptions.

MARKET DESCRIPTION
Engro Foods, a wholly owned subsidiary of Engro has officially
launched its packaged UHT milk, Olpers on 20 Mar, 2006 , a month
ahead of its deadline. Though the launch is no doubt aggressive, we
understand that competition has turned even tougher.
As per Engro Foods CEO, the company is also eyeing a foreign joint
venture brand in order to well position its brand in front of an MNCbrand, Nestle. With strong business dynamics (Pakistan being the
fourth largest milk producer in the world with merely 4% of the milk
being processed), we believe this sector has the potential to attract
foreign investment, where the potential foreign investor would be
looking at a local partner having strong expertise in supply chain
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management for milk collection in order to become successful in this

business. With a 40-year relationship with farmers, we believe the
chances of Engro attracting a foreign equity partner in this business
are high in the long run.

PRODUCT REVIEW FOR OLPERS MILK

Packaged UHT milk, Olpers Brand Name: Olpers (a derivative

of All-Purpose) on an impulse from its name gives a feeling of
being an imported brand and not local one (competition has
positioned its products as a drink or to be used for tea). Thus,
consumers may perceive this as a high quality and premium priced
brand.

Befor the inception of the brand name Olpers, AC Neilson

carried out a marketing research for EFL to determine the viability
of the name Olpers and the market readiness through surveys,
interviews and focus groups. 1200 names were reviewed and
analyzed before Olpers was decided.

One of the companies making the big strides in the industry is the
Engro Food, which has successfully launched a range of milk products,
which includes Olper and, Olwell. The former is a premium, all purpose milk
and the later high calcium, low-fat milk for them health conscious, Olpers
cream, and now the company has introduced a new brand of milk, Tarang: a
liquid tea whitener that provides perfect complement to tea.

In the short span of time since its launch, the company has
recorded exceptional growth. Its premium, all-purpose milk- Olpers has
managed to acquire 22 percent of market share and is poised for further
growth.

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SEGMENTATION AND TARGETING

Market Segmentation

By using market segmentation Olpers is dividing a large

heterogeneous market into segment that can be reached in an
efficient and effective manner.
Olpers is using a segment marketing strategy for targeting the
marketing efforts towards those people who are health conscious, and
who belong to upper and middle-income classes of the economy.

Geographic Segmentation:

Initially Olpers is catering to the urban centers for e.g. Karachi,

Lahore, Quetta, Peshawar and Islamabad but would be expanding into
40-45 cities of Pakistan in the next ten years.

Demographic Segmentation:
They are targeting towards educated, young mothers and families
with kids and health conscious people belonging to upper, upper
middle and middle class.

Psychographic Segmentation:
The brand personality of Olpers is a cosmopolitan premium brand
that reflects a person who is sophisticated, health conscious and is
trendy.

Behavioral Segmentation: Its an all purpose milk for all occasions

and daily use for people who want surprises and delight in their life,
are trendy and always welcome change. The people are now well
informed about the product through the strong marketing
communication. Jo Dil Khool Ke Jetay Hain Un Ke Liay Hai
Olpers.

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Target Market
Olpers has adopted product specialization strategy to cater to all
consumers who are hygiene conscious and prefer packaged milk with
its All Purpose Milk. Olpers plans to reach markets where the giants
Milkpak and Haleeb exist in order to bite of from their market share.
In terms of Engro Foods Market Segmentation, there are different
products such as Olpers milk, Olpers Cream and Olwell that are
focusing on different customer needs and thus targeting different
customer segments, thus it is following Selective Specialization.
POSITIONING
Olpers has portrayed itself as an all purpose milk with an image of
being a cosmopolitan, elegant, premium and international milk brand
catering to the affluent and middle classes. It has established a
distinctive position in the market and the minds of the consumers.
Previously Olpers was working on its seasonal positioning i.e. Har
Sehr Har IftarMukamal Doodh, Olpers this positioning was
all about celebrating the festivities of the holy month of Ramadan and
how Olpers adds a nutritional value to life in Ramadan. However they
can come up with new innovative ideas for Eid, Independence Day
Celebration, and Wedding Season with the seasonal positioning
revolving around their core positioning and attributes.Currently
Olpers have launched a new advertising campaign with a catch line
Jo Dil Khool Ke Jetay Hain On Ke Liay Hai Olpers featuring
prominent models especially Barbra Shareef, Shoaib Hashmi etc to
show vitality at an older age.

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Identifying Possible Competitive Advantages:

Olpers is gaining competitive advantages over its competition
through:
a. Image Differentiating: No milk brand till now has positioned it
self by giving emotional benefits to its consumers and as an elegant
and trendy image other than Olpers. They have a distinctive brand
name and mark
recognition.

and color theme that provides instant

b. Channel Differentiation: They have a distinctive distribution

channel i.e. distributing directly to retailers and different places in
the food services industry like hotels, restaurants, cafs, Airlines,
and defense institutions etc. They also have engaged wholesalers
to generate volume driven sales.

PACKAGING

Front View
Towards the front, the logo of Olpers is
printed in English while on the reverse side
is printed in Urdu. Olpers uses Tetra Pak
packaging which are available in , and
1 liter packs. The brand logo is printed in
front.

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Top View
The top view consists of expiry date,
contents and storage instructions showing
that the milk is Ultra Heat Treated,
Homogenized, Standardized and Toned at
3.5% Fat.

Side View
The side view shows a picture of a happy and
healthy family showing their positioning as an
all purpose full cream milk for the whole
family. The other side view shows the
nutritional content and value that the milk is a
source of Lactose and is rich in calcium,
phosphorus, potassium and vitamins which are
essential for ones health. Olpers also have
their augmented product in the form their address which is Engro
Foods Limited, 6th Floor, PNSC building, MT Khan Road, Karachi

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MARKETING MIX
PRODUCT
Olpers can be evaluated in marketing terms as follows:

Features: All-purpose UHT Milk standardized and tones at 3.5%

fat.

Design: A rectangular Tetrapak of red color, nutritional labeling

showing the values, quality and attributes of the brand.

Augmented
packaging.

Product:

Feedback

address

labeled

on

the

Product quality
Olpers quality is one of the major positioning tools as it positions
itself as a high class premium quality milk, not only this but they
are striving to maintain consistency in delivering a targeted level of
performance.

Brand Equity
Engro already has a strong position in the market, name
awareness, perceived quality and a strong brand association.
Olpers is gaining popularity and consumers expect it to be
available at leading stores for e.g. Aghas, D-Mart, My Super Store,
EBCO, Paradise etc. but now its also available at small retailers.

Brand Strategy
Using a successful brand name Olpers theyll be coming up with
different but related products under the same brand for e.g.
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Olpers Cream, Olpers Yogurt, Olpers Flavored Milk, Olpers High

Calcium Low Fat(HCLF) Milk and Olpers Butter.

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PRICING
It is reasonably priced according to the existing market prices of
competition but at the same time providing good quality in
comparison with the local suppliers. Since Olpers is in the
introductory stage of the product life cycle therefore their objective
is to maximize quantity.

Competition Based Pricing

Olpers is in the market of FMCG where the prices are determined
by the on going competition rather than a monopoly of a particular
manufacturer at the same time they are focusing on marketing
penetration to get the largest share. Thus they have determined
the prices according to the existing market prices of other
packaged milk suppliers for e.g. Milkpak, Haleeb etc.

New Product pricing Strategy

Olpers is on growth stage of the Product Life cycle. It followed
price penetration strategy to penetrate in the market even after
existence of strong brands like Nestle Milkpak in the market.

Market penetration Strategy

Olpers is positioned as premium quality milk. However they have
priced their product similar to existing market leaders to penetrate
into the market and capture the leaders customer base.

SIZE (ml)

OLPERS

1000
500
250

55
30
15

PRICE
NESTLE
MILKPAK
55
32
15

HALEEB
55
30
15

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PLACEMENT
Olpers use intensive distribution method and is available in
almost all the urban cities of Pakistan at not only leading stores
but also at small convenient and small retail stores (Indirect
Channels). To be more accurate the top leading stores where
Olpers is available are:

My Super Store

EBCO

D-Mart

Aghas Super Market

Imtiaz Super Store

Naheed Super Store

Al-Fateh Super Store

And also smaller retailers like:

Khatak Super Store

Shell Select

Caltex Star

Engro Foods has

its own sales
and dist.
network

Special
discounts to
retailers shelf
space

Pakistan divided
into five
regions;
Karachi, Lhr,
Isb, Pesh and
Multan

Rajanis etc.

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PROMOTION
Since Olpers is a new brand in the market, they needed to have a
very aggressive promotional strategy so as to push the product
through their distribution channels in order to gain maximum
market share. They have started from first creating awareness
among the customers; induce trial, then to build a conviction that
Olpers is the best among all existing brands.
For promotional purposes they have separate brand activation and
a customer relationship department and have also hired the
services of a brand activation agency named Contact Plus.

Promotional Budget
Olpers is using a percentage of cost method to allocate their
promotional budget. They want to focus extensively on promotion
which is the reason why Olpers has allocated double the market
budget of their competitors which is estimated to be around Rs.
400 million which will be spent over the period of one year to
create maximum awareness and encourage usage of their brand
even if it results in losses as they have the financial muscle of
Engro Chemicals.

Promotional Mix
Since the emphasis on promotion is high and Olpers wants to
create an experience of its products, they are laying emphasis on
both the Above the Line (ATL) and Blow the Line (BTL) activities.
Their promotional mix revolves around their four muscles/themes,
which are Surprise and Delight, Festivity, All purpose milk and
Togetherness.

o Print Media
Olpers advertisements are printed in all leading newspapers e.g.
dawn, the News, Nation, Jang, Naway Waqt etc. Olpers is also
planning to place advertisements in all health and lifestyle
magazines e.g. She, Mag, Akhbar-e-Jehan etc.
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o Broadcast Media

Television:
Olpers places major emphasis on broadcast media. After their
launch in April of 2006, they launched their first television
commercial which was a 120 second spot and cost them Rs.25
million. This was their signature campaign that had all the
major celebrities to create an exclusive and extravagant image.

They played another advertisement which was a 48 second spot

again showing an exclusivity of the brand Olpers with the tag
line Subha Bekhair Zindagi which is a positioning towards
optimism while the kind of people and environment shown in the
advertisement reflects a premium image. Their Ramazan
Campaign was launched that showed all the major cities of
Pakistan. The advertisement was a 52 second spot and portrays
the spirit and collective harmony of Ramazan no matter who it
is, and carrys the tag line Har Sehr har iftar Mukamal
Doodh, Olpers, Bhar lo apni jholi umeed k ujaalon se .
Other than that a 10 second spot was shown on regular intervals
which shows different uses of Olpers for example Doodh Pati,
Lasi, Chai and Doodh soda. This advertisement was positioned
towards Olpers being an all purpose milk.
Recently Olpers have launched another ad campaign where
they are showing a family setting and another one where they
are featuring famous TV artists and emphasizing on the fact that
its a family product and it is for people who want to live their
lives to the fullest. Both of theses commercials have a 45 second
slot.

Radio
Olpers has separate advertisements for Radio which are aired
usually in the morning hammering consumers with the tag line
Subha Bekhair Zindagi which again is positioned as an all
purpose milk. The Ramazan advertisement was also being aired
on Radio in the evening.

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o Outdoor Media
Olpers has placed huge billboards and pole signs on major
locations like Gizri, Schon circle, Boat basin, Karsaz, Clifton bridge
and all other places which have excellent visibility and heavy
customer traffic. They are also using exclusive illuminated
distribution vans and branded vehicular traffic e.g. Buses etc.

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RECOMMENDATIONS

Act local-Olwells advertising

must conform to local values
PR Activities; mothers day
special sponsorships
Advertising at the right
place; Olwells TVC can run
during yoga shows in the
morning
Increase pull strategies; offer
discounts in Ramzan

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CONCLUSION

Through intelligent strategy formulation and implementation, Olpers has

successfully achieved growth and earned a prominent marketshare (22%) in
a very short span of time and looks forward to increase the share in the next
few years to become the market leader. Their product has been successful,
the major reason for which can also be that they believe in continuous
improvement and follow thorough research methods before formulating any
new major strategy.

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