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Report on engro foods 2017

INSTITUTE OFBANKING AND FINANCE

MARKETING PROJECT
Dated:22nd may 2017
Submitted to: Dr Imran hanif

Submitted by: Areeba saeed


Quba Siddique
Tayyaba sattar
Qurat ul ain rabbani

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Report on engro foods 2017

Table of Contents:-

1) Executive Summary of Engro Foods………………………………………3


I. Introduction…………………………………………………………….6
II. History…………………………………………………………………….7
III. Nature & Scope of Organization…………………………….9
IV. EFL Vision Statement…………………………………………….11
V. EFL Mission Statement…………………………………………12
VI. Core Values………………………………………………………….12
VII. Goals & Objectives………………………………………………14
2) Marketing Mix…………………………………………………………….16
I. Place……………………………………………………18
II. Price…………………………………………………….19
III. Promotion…………………………………………….20
IV. Distribution……………………………………………21
V. Distribution Channels of Engro Foods……………………..23
3) Promotion Mix……………………………………………………………24
I. Promotion & Advertisements…………………….24
4) Marketing Environment…………………………………………………25
I. Pest Analysis
a. Political Forces…………………………………….25
b. Economic Forces………………………………25
c. Socio-cultural Forces…………………………26
d. Technological Forces…………………………27
I. Competitive Forces……………………………………29
5) Market Segmentation……………………………………………………………30
I. Demographic Segmentation………………………….30
II. Psychographic Segmentation…………………………..31
III. Behavioral Segmentation……………………………….32
 Recommendations……………………………………………………..33

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Executive Summary
Engro Foods Limited (EFL) started its operations in 2005 and is a fully owned

subsidiary of Engro Corporation Limited. Engro Foods is getting enormous success

since its birth as Olper’s Milk, Tarang and Omore are among its best-selling

brands. Engro has introduced EMAAN payment system for farmers and it is giving

training to farmers for properly feeding animals and it is also providing medical

assistance to farmers.

Analyzing the EFL with respect to different marketing models like marketing mix

,promotion mix, PEST, Hofstede Cultural Dimensions etc some major issues are

found with such company. It is analyzed that Olper’s and Tarang are successful

brands having very few issues but the others brands are having many issues with

them especially in Product and Promotional activities.

The main reason for Olper’s success is its nature itself that is for all purpose and

also it’s attractive and family oriented TVCs every year specifically in Ramzan

while Tarang is more preferred because of its

low price. Omore is getting awareness among consumers now a days because of

word of mouth and its taste and quality. Furthermore, current infrastructure

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development in country like construction of Motorways, Pak-China Economic

Corridor will opportunities to EFL to expand its business with low cost.

It is analyzed that major issues with EFL are that it is lacking in doing attractive

promotion of its products and it has faced quality issue with products. Olfrute juice

has both of these issues as its taste cannot be differentiated with its competitors or

its quality is below than competitors and its TVCs are not so much attractive and

also they are having proper connection with product nature. While on the other

hand, the idea of offering a traditional desi drink i.e. Lassi in tetra pack is not liked

by people. Although Omore brand of EFL is getting success but there are some

issues with this flagship brand. First it is charged with high price as compare to its

strong competitors like Walls and secondly its ads are could not connect an ice

cream with happiness. Omore ads are effecting negatively on children as they are

teaching children to disobey teacher, eat in class and fight for ice cream. Many

other issues are found with some other products of EFL like Olwell ad (now

Olper’s Lite) was opposite to Pakistani culture and now EFL has re-launched the

Olwell under the name of Olper’s Lite but there is no TVC for this product. EFL

has targeted only the professionals and upper middle class in its Olper’s Lassi ad

while Lassi is for every age group and it a refreshing drink not a fun drink as

promoted. But according market segmentation dairy products of EFL cover all

society of Pakistan like upper ,lower ,and middle class as well.

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It seems that marketing managers of EFL are doing comprehensive research

before launching a new product or making ads for new products. It has been

observed that TVCs of every product except Olper’s milk are not having issue in

them as the products are connected properly with their nature.

EFL should also focus on its other brands rather than focusing only on limited

brands like Omore, Olper’s etc. EFL can get maximum benefit of its Omore brand

as it is quality brand but the need is to reduce price and make effective TVCs and

giving incentives to retailers. It should also target young girls and boys by making

TVCs for its Olper’s Lite low fat brand and also promoting it by arranging health

awareness sessions in colleges/universities. EFL mangers should do a research

before launching a new product that either it is demanded by consumers or not

1.1 Introduction
Engro Foods Limited (EFL) is fully owned subsidiary of Engro Corporation. Engro

Corporation was found in 1957 under the name of Esso Corporation Limited. In

1978 it was renamed as Exxon Corporation limited and then in 1991 it was given

the name of Engro Corporation Limited. And till now it has grown to become one

of the largest industrial corporation of Pakistan. The company has a well-

diversified portfolio. It is currently operating 6 different business i.e. Engro foods,


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Engro fertilizers, Chemical storage and handling, Trading, Energy, and

Petrochemicals.

Engro Foods started its operations in 2005 and developed it to get huge market

share in just few years. Engro brands are considered to be the high quality brands

and charge competitive prices. EFL’s growing market share covers over 8 regions

and 300+ cities in Pakistan as well as over 18 states in USA and 4 provinces in

Canada, where our halal food range continues to attract a wide cross-section of

consumers. Engro has currently following brand portfolio.

 OLPER’S:

o Olper’s lite (low fat)

o Olper’s milk

o Olper’s cream

 Olper’s Tarrka (Desi Ghee)

 Y-frooter (fruit flavored)

 Olper’s Lassi

 Tarang (Tea whitener)

 Omore ice-cream

 Omung Dobala

 Dairy Omung

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 According to Engro foods website, 5 million people nationwide use its

products daily and it workforce comprises of more than 1500 employees.

Engro Foods’ most successful products are Olper’s milk, Tarang and now a

days Omore ice cream. Olper’s milk is successful because of its nature that it

is for all purposes and also for its attractive and family oriented TVCs while

Tarang is successful for its low price and Omore for its taste and quality.

1.2 HISTORY
Engro chemical Pakistan Limited is the second largest producer of Urea fertilizer

Pakistan. The company was incorporated in 1965 and was formerly Exxon

Chemical Pakistan Limited until 1991, when Exxon decided to divest their

fertilizer business on a global basis and sold off its equity of 75% shares in existent

company. The employees of Engro, in partnership with leading international and

local financial institutions bought out Exxon’s equity and the company was

renamed as Engro Chemical Pakistan Limited. Engro is a public limited company

listed on the Stock Exchanges of Karachi, Lahore and Islamabad

The principal activity of the company is manufacturing, purchasing and marketing

of fertilizers. The company is also involved in the production and marketing of

seeds and has invested in joint ventures engaged in chemical related activities. As

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part of its diversification strategy, controlling interest was acquired in a company

offering industrial solutions in automation and control. A new milk plant has been

established at Sukkur the milk is branded as Olpers

BREIEF INTRODUCTION OF ENGRO FOODS

Engro Foods Limited (EFL) has been established in 2005 as part of a

diversification process at the Engro Group. EFL is a 100% Subsidiary of Engro

Chemical Pakistan Limited. The plant located at 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 day. The plant has been established at a cost of Rs. 1 billion,

which provides direct employment to 750 people. 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 will work with the Pakistan Poverty Alleviation Fund and its three

partner organizations to help implement sustainable business models that increase

farmer’s profitability and develop a positive social and business climate for growth

and expansion of livestock and other forms of value added agriculture.


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1.3 Nature and scope of Engro

“With a business footprint spanning across a multitude of sectors,


we remain resolute in our commitment to creating positive
reverberations across the entire economy”

“Our future begins with you today...”


As an organization that prides itself on the fact that we continue to retain and

hire the best from Pakistan and beyond, our organizational culture can be summed

up in one word: engrobility. Engrobility defines our way of life and is at the heart

of the Spirit of Engro which encompasses the myriad values that each of our

employees brings to the organization.

Culture and diversity


Diversity of talent lies at the heart of employee selection across all subsidiaries at
Engro - it is what drives and sustains our growth. We value and honor diverse
experiences and perspectives that strive to create welcoming and respectful
learning environments while promoting access and opportunity for all. In order to
facilitate our female employees, our head office we believe that our employees'
superior creativity and innovation leads to enhanced business performance and
more successful linkages with a wide variety of stakeholders. As a result our
employees feel engaged and therefore central to our continued success

Training

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To ensure that we remain the most sought after employer amongst college
graduates and experienced professionals we continue to maintain a stringent focus
on implementing a holistic strategy for employee and organizational development.
Our comprehensive training and development framework ensures essential skills
development across a wide array of competencies and serves as an integral part in
retention of a great talent pool. Living this philosophy of providing an enabling
environment and having a well trained workforce, we provide a conducive
platform to all our employees to actualize their innate talent and unleash their true
potential thereby fuelling our best-in-class organizational culture

Volunteerism/csr
We understand the importance of giving back to our communities and serving the
underprivileged in whatever capacity we can. To this effect our employee network
of volunteers - EnVison (Engro Volunteers in Service of the Nation) provides an
enabling platform to our employee community to better lives of millions of
underprivileged Pakistanis year after year. We continuously search for
opportunities that provide our employees the chance to make positive and long-
term impact and the opportunity to do more each day to create inroads for the
under-privileged

1.4 EFL VISION STATEMENT


Engro Foods’ vision is “Elevating Consumer Delight

Worldwide” and the Company aims to generate a significant

portion of its revenue from foreign operations.

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“To become fast growing mega Food Company & also to


elevate Consumer Delight Worldwide”.

Engro Foundation brings realization to the dreams of our people to make a


difference in lives of those around us. We believe in the power of Pakistan’s
human capital to change the face of communities and economies and make them
agents of a wider change.

“To enhance current services and influence future growth and

development”

1.5 EFL MISSION SATEMENT

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.
“Our mission is to provide satisfaction at a competitive cost,
growth in diversity, and continue to contribute to the growth of
industrialization in Pakistan by being the market leader”.

“To provide our community excellent services at economical rate”

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“To create wealth by building new businesses based on country and


company strength in petrochemical information technology and
other agricultural sector”

Core values

1. Ethics and integrity

2. Innovation

3. People

4. Community & society

5. Consumer centric

6. Safety health and environment

Ethics & 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.

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Innovation
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.

1.7 Goal and objectives


Engro’s first priority is to fulfil costumers 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.

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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".
.Safety Health & Environment:
We will manage and utilize resources and operations in such
a way that the safety and health of our people, our
neighbors, our customers and visitors in ensured. We
believe our safety, health and environmental responsibilities
extend beyond protection and enhancement of our own
facilities, and we are concerned about the distribution, use
and after-use disposal of our products.
Individual growth and development
We strongly believe in the dignity and value of people. We
must consistently treat each other with respect and strive to
create an organizational environment.

Diversity and international focus


We value differences in gender, race, nationality, culture,
personality and style because diverse solutions, approaches
and structures are more likely to meet the needs of the
customers and achieve our business goals.

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Product line

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2. Marketing Mix Of Engro:

Engro Foods is a multinational enterprise that deals in beverages and food items.
Based in the city of Karachi it is the subsidiary of a Pakistani company called
Engro Corporation. Engro foods are manufacturers, processors as well as dealers
of drinks, frozen desserts and dairy products. The brand has been able to carve an
individual name for itself because of its sheer determination in providing healthy,
nutritional and fresh qualitative products at minimum possible prices. The
satisfaction of the consumers has taken the company to unimaginable heights as
the huge sales have resulted in the company maintaining its position at the top
level.

Some of its major competitors in today’s market are as follows-

 Haleeb
 Nestle

Although Engro Foods started its operations, using dairy products like milk but
later it included many food products under its product portfolio. In order to meet
the demands of its health conscious customers, it dealt in food items that were
healthy and had good nutritional value. Special attention has been given to the taste
and quality of the products. Their multiple products include items like the
following

 Flavored milk
 lassi
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 Milk powder
 Fruit juices
 Ice creams
 Milk

The brands milk items include olper’s full cream milk that is creamy in nature and
olper’s lite for health conscious people who tend to drink low-fat milk. The fruit
juicers include Dairy omung and olper’s y-frooter.Tarango is the special and
creamy milk powder whereas the frozen desserts are available in cups and sticks.
Olper’s cream and olper’s tarrka are some of its other products. The tarrka is used
as a special spice to enhance any food item. Although the ice creams are available
in various sizes, the other dairy products are available in mostly half and one liter
sizes. Engro Foods also deals in anhydrous milk fats that are used for various
purposes like frying, cooking, as replacement for fat in dairy products, as
ingredients in bakery products and for making ice creams and confectionary. Its
product also includes unsalted butter that is derived from the pasteurized cream of
both buffalo and cow.

For its international market, Engroo Foods has also started venturing in to various
other food products. Besides the regular items, the other products served are frozen
meat related food items like turkey, beef and chicken.

2.1 Place in the Marketing mix of Engro Foods


Engro Foods is actively involved in the distribution of all its food products. It
follows both the direct and indirect channel of distribution. Under indirect channel
Engro food products are available at almost all the large and small-scale outlets

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and stores. Even high profile marts and showrooms that have food item counters
display the products of this company. This has become possible because of the
transports owned by private firms. The usual channel under this scheme includes
distributer, wholesaler, retailer and then the consumers.

The direct channel has become possible because the company is selling their
products to the consumers directly through their own personnel on cycles, trucks or
tricycles. The distribution network is an extensive one so that prompt deliveries are
possible. Engroo Foods has set up its own dairy farms as well as plants for milk
processing in Sahiwal and Sukkar. It has appointed workforces for milk
procurements and created departments that are vigilant in its efforts to ascertain the
freshness of the products. The company covers at least twelve regions and has
nearly three hundred and fifty distributers working under it.

Under its international expansion plans, the company signed an agreement to buy
the American food company Al- Safaa - Halal. Today the company has become an
international company with a global market.

2.2 Price in the Marketing mix of Engro Foods

Engroo Foods has decided to follow the strategy of competitive pricing for its
products. In order to do so it has kept a careful watch on the market economy as
well as the pricing policies of all its competitors. It receives regular feedbacks that
help it in determining and fixing the prices of its own products. The market
demand is another deterrent in determining the prices and Engroo keeps the lowest
possible prices without hampering the quality of the product.

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The company has decided to keep the prices flexible on a minimum and reasonable
scale, so that each and every section of the community can reach towards these
products. Large volume of sales yield larger profits for the organization. Keeping
all its options open the prices tend to fluctuate to meet the demands of the
consumers as well as other economic factors. In order to maintain its commitment
towards providing realistic food prices the company has taken admirable and active
steps so that cutting of excessive costs can be made possible.

In some cases, the company has also used a premium pricing policy where the
prices are a bit more than the prices of local available brands but are quite
reasonable when compared to the international brands. These are for brand
conscious customers who tend to purchase products that provide competition to
foreign markets.

2.3 Promotion in the Marketing mix of Engro


Foods
The marketing strategy of Engro foods is consumer centric and this has made them
a huge success in the food industry. Under its promotional strategy, it has given
special attention to its packaging and marketing. The attractive and high quality
packaging is also colorful to make it distinctive and eye catching. Tetra packs are
used for protecting the flavor and freshness of dairy products and that to in distinct
colors like purple, orange, green and yellow. An Engro food product is easily
recognized at a glance. Engro foods have realized the importance of homemaker in
the scheme of their things and hence have been actively targeting the homemakers

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to buy their products. The healthy milk products are a hit with them and the kids
love the taste of its ice creams.

Engro foods recognize the contribution of active advertising to make high sales.
The vision of the company is “Elevating Consumer Delight Worldwide” and for
this purpose, it has taken the help of print media to highlight its products in every
nook and corner. Billboards magazines and newspapers are an important part of
their strategy. Besides this, they have created noticeable ads that are colorful with
catchy tunes and made them a part of the electronic media specially the television
and radio. Advertisements are also displayed on vehicles like the bus, trucks and
trams.

2.4 Distribution Channel OF Engro Foods:


Marketing means to get, retain & grow customer’s value.
Types of Channels:
 Services
 Distribution
 Communication
Channels of Engro Foods:

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Manufacturer:

Manufacturer are the producers of the product. They have many plants that are
engaged in working on taking orders, purchasing raw materials and producing
finished goods. When all the process of producing goods are finished then these
goods are supplied to distributors and then it is available to final customer.

Distributors:
They have their own distributors all over Pakistan. Distributors have some fixed
commission from the company. In case of any risk, occurs from goods distributed
the cost is shared by all channel members and also company. Distributors are the
wholesalers of the company.

Retailers:
Retailers are the person who receive the products from the distributors. Profit and
risk are shared as same as the distributors.

Customers :
Customers are the final product users. They receive the final products from the
retailers. Company make there products according to the desire of consumer.

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3. Promotion mix:
3.1 Promotion and advertising
Olper,s launch was, perhaps one of the most aggressive as far as processed liquid
milk (PLM) is concerned, with TVCs, print ads, radio commercials, billboards and
plenty of BTL (below the line) activities including direct consumer and shop
branding activities. Due to this aggressive marketing campaign, the competition
seems to be getting tougher. This can be gauged from the fact that Nestle re-
launched its product packaging and marketing campaign just before Olper,s
launch. One can also a far greater number of milk advertising billboards in Multan
city than seen earlier like of Nirala, good milk and Nestle.

Ramadan campaign
Olper,s always had a unique campaign; and it has been 3 years since Olper,s
celebrates the spirit of Ramadan. Olper,s advert launched in Ramadan 2009 is the
latest example for it. This Ramadan they have has come up with another nice
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promotional campaign. They are promoting the Muslim patriotic spirit all around
the world through the most popular ³Hum Mustafavi Hein´song and a message of
Peace for the whole world. The advert features Atif Aslam and Dawood Ali. It is
directed by Asim Raza and he has worked fabulously. This ad has been shot in
5 different countries I-e Pakistan, Dubai, Morocco, Brunei and Turkey. They have
shown the Muslim rich culture, heritage and beautiful mosques

4.The marketing environment

Pest analysis
4.1 Political /legal forces
“when the rate of change inside the company is exceeded to rate of
change outside ,then the end is near”
4.2 Economic forces
Inflation rate of Pakistan for the current fiscal year has grown to 7 percent. This

thing is really hurting the purchasing power of Pakistani consumers. PLM which is

already considered as more costly compared to open milk is becoming out of reach

of general public. As a result, there is an increased pressure on PLM companies to

either decrease their prices or at least keep prices stable. Moreover, packaged milk

industry which each year pays millions of taxes is not being given any relief in

terms of taxes by the government. Competition is also increasing with the entrance

of new domestic players in the dairy and food sector and plans to increase

investments by the already established companies. Nirala, good milk ‘ Pakola are

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the few names which have recently introduced their dairy product lines in the

market. Major textile groups are also diversifying into dairy and livestock business

and some of them have even acquired lands to start their business. Leading

industrial groups such as Jamal Din Wali Sugar Mills, Dewan Group of Industries

and Shakar Ganj Sugar Mills have already made substantial investments in dairy &

livestock sectors. In March this year, Nestle Pakistan opened astate-of-the-art milk

processing facility in Kabirwala, Punjab. The plant, Nestlés largest milk reception

facility in the world has a processing capacity of 2 million liters of milk per day

4.3 Socio cultural forces

In order to make a noticeable increase in penetration, many challenges and

perceptions still have to be overcome by the PLMCs.The least important one,

perhaps, is tradition. Milk, even amongst the most urbanized consumers is

synonymous with the early arrival of the (milkman) at their home on his

trusty bicycle (now replaced by a motorbike), reinforcing the impression that the

milk is fresh, natural and straight from the cow. And it is this perception that only

loose milk is fresh, and therefore healthy and preservative-free, that has to be

overcome, if increased penetration is to occur at a substantial rate Over the years,

all PLMCs, but especially the two older players, Nestle and Haleeb, as well as

Tetra Pak (the company that packages the processed milk) have been making

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active efforts to convince loose milk users to switch to processed milk. In the last

six years, Tetra Pak has launched three major campaigns aimed at changing

consumer perceptions. Last year, Tetra Pakistan third campaign

(Milk, what else?), addressed the misconception that processed that packaged milk

has preservatives. The campaign talked about the benefits of TetraPak¶s six-

layered packaging material and innovative technology that keeps milk safe for a

longtime. The highlight of the campaign was the introduction of a buffalo character

called, Moomoo, who explained why UHT milk stays safe and hygiene for a long

time in a Tetra Pak carton

Despite these marketing endeavors, perceptions cannot change overnight; this

requires patience and continuous investment to educate consumers on the benefits

of packaged milk. Every products lifecycle consists of an introductory phase,

growth phase and maturity phase. It takes time to change attitudes, especially in a

culture where the concept of fresh milk is healthier option. Another hurdle in

converting loose milk users to processed liquid milk is price. In Punjab, because

most dairy farms are based there, loose milk is cheap at approximately Rs 20

per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh,

however, the price differential between loose (Rs 28) and processed milk (Rs 38) is

only Rs 10.As a result of price considerations, most PLMCs have not increased

prices in the last 5 years. Moreover, Nestle and Haleeb have introduced smaller

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packages to cater to consumers with limited cash flows, although there is a

convenience factor at play here as well.

4.4 Technological forces

Milk yields per animal have been increased through scientific feeding &

breeding.In year 2005, the Ministry of Industries and Production established Dairy

Pakistan Company on the lines and model of Dairy Australia. The main objectives

of the company are as under:

 To promote milk and other value added dairy products in the domestic

as well as international markets

 To promote development and up-gradation of dairy supply chain in

Pakistan by supporting and facilitating the farmers, processors and

other stakeholders across

 To support dairy sector growth by way of supporting and facilitating

business development services for the enterprises across the dairy

value chain.

 To initiate and support interventions across the dairy value chain to

enhance sector competitiveness through innovations and research.

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 To promote technology development, transfer, assimilation,

streamlining, acquiring and/or up-gradation across dairy value chain

by undertaking new initiatives.

 To help introduce international best management practices for better

productivity and operational efficiencies.

 To promote training and skills development of human resources

associated with the dairy sector.

4.4 Competitive forces


when Engro Foods launched Olper,s Packaged Milk in 2006, many in

Pakistan,s food and beverage industry thought the brand would flounder

and ultimately fail, being unable to challenge established category leaders

.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% to93% of milk is open

milk. Because of various socio economic factors Packaged Milk is still

notthat popular here. There is only 4% penetration of packaged milk in the

market. Nestle Milkpak is the king of the market having 40% market

share. Haleeb was second in place. Olper¶s swept the rug right out from

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under Haleeb,s feet and they lost their market share and their place as

second best. Now Olper,s market share is 22%.

5. Market segmentation

It is difficult for any one company to engage in mass production,

mass distribution and mass promotion for its product. The

complexities arise from the proliferation of advertising and

distribution channels and the high costs associated with reaching

a mass audience. Therefore, companies segment the market so that

they can target the group of customers who share similar needs and

wants. The milk sector shows a market that has homogeneous

preferences that is the consumers have similar preferences. They want

milk to be white, carefully processed,

and good for health and bones. Keeping these things in mind Olper’s

market has been segmented. The marketers at Olper’s have had

a number of options available to them

when segmenting the market for their products. So far company has

introduced three

new products: Olper’s milk, Olwell diet milk and Olper’s cream.

5.1 Demographic segmentation

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Olpers products are not bounded to any particular age, gender or

lifecycle stage. The brand is meant for all the users in higher upper or

middle class families. Even though the brand calls for a

small percentage of an individual’s income but lower class wouldn’t

want to buy the brand maybe because they are price sensitive or

because they believe lose milk is better than processed milk and has

all the nutrients that the processed milk lacks. However all the

companies in the milk sector are trying to change the image

of processed milk as non-nutritionist milk. Therefore it can be said

that Olper’s has been positioned as a brand for high income earners.

Due to the income factor involved it can be said that Olper’s milk

target a specific social class who are health conscious and

concerned about their weight

5.2 Psychographic segmentation


On the basis of psychographics, factors such as personality traits,

lifestyles and values, the marketers at Olper’s have segmented

the market more towards achievers who are goal-oriented and focused

on their careers, and experience who seeking

variety in the milk sector. For example the ads for Olwell mostly sh-

ow acheivers who want to be successful, have high aims and are


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already doing quite well in their concerned fields. The Olper’s

products have targeted experiencers because the company has given

them a new set of brand and so many will make their first purchase

because they want to try something new. Olper’s ads also target

believers, traditional conservative people with concrete beliefs. The

ads for Olper’s show the beliefs of healthy life with processed milk

and plays on the emotional aspect more.

5.3 Behavioral segmentation


Olper’s products have been segmented on the basis of benefits that

consumers seek in the milk. In this case, people look for a brand that

can be used for all purposes from drinking to tea whiteners as well to

feed the animals. The ads also show that consumers should increase

their milk consumption for example with every tea they should use

Olpers, every morning they should drink Olper’s and every day they

should feed their pets with Olper’s milk.

There may be some hard core loyal in the milk sector. Loyalty maybe

towards such established brands as Nestle and Haleeb. There might

even be switchers and shifting loyal in the milk sectors that are either

price sensitive or want variety. As a result, the marketers need to find

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ways to make the hard core loyal attracted to the Olper’s brand and

shifting loyal and switchers to convert into hard core loyal as well.

Recommendations
 Engro Foods should have much diversified bi-product line of dairy products
like Nestle & Haleeb.
 They should introduce new promotions to get customers’ attention.
 EFL should expand its dairy farms so that they can get competitive
advantage.
 EFL should focus on Market Penetration, Market Development and Product
Development strategies with more efforts to be the market leader.
 They should go expand its capacity to enter into in international market like
Nestle.
 Engro Foods can be into Co-branding with other brands like Olper’s with
Lipton tea bags, Olper’s with different biscuits etc. to increase their sales.
 EFL sgould also focus on their other products like omung lussi ,olfruite and
olwell.

They can also move towards other foods products like Nestle launch Kit Kat
Chocolate, Meggi Noodles, Sweets Candies etc.

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