BM,Olper's Bread,8610,8723,7547,8855,9365

Brand Launch (extension)Brand Management

Executive Summary

• Olper’s is a highly established brand in the milk industry and has a very rich heritage and equity

• The main aim of this launch plan is to dominate the bread industry because the brands which are already operating in the industry are neither growing nor providing any benefits to the consumers

• All of the brands in this industry are providing almost similar kind of products to the consumers

• This launch plan has been made after extensive research, competitor analysis and consumer connect processes to browse the behavior of consumers and competitors

• The vision of the brand is very clear from the start and that is to dominate the bread industry and sustain the brand through continuous innovation and quality offers

• A full-fledged trade marketing plan has been made which includes the major decisions regarding the distribution and availability of the product

• A complete 360-degree communication plan has been made to create the awareness and communicate the positioning of the brand. The advertising would be very intense in order to grow aggressively

• The main focus is to work aggressively like the team did for Olper’s Milk and Omore

• All the aspects of the brand launch have been covered so that the brand become successful not only in the short-term but also sustain its growth in the long-run

Engro Foods Limited• 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.

• After the success of our dairy products, to which our customers testify, Engro Foods now plans to venture beyond the dairy sector. 2011 will also see the beginning of sales from its own rice processing plant.

• 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.

• With the vision of Elevating Consumer Delight Worldwide, Company’s signifcant focus will be towards the global operations in the years to come.

• Engro foods top brands are Olpers, Tarang,

Olwell, Omore and Owsum and they all

belong to its diary product line.

• Other than these diary products, Engro has

not given much attention to other FMCG

products. With the launch of ‘Olper’s Bread’

Engro Foods will enter a new category with

an established brand name.

Category Profile

Category Profile

• Bread is one of those products which are bought and consumed on daily basis. It is

consumed in a such a quantity that it is a part of an average individual’s daily diet.

Although the quality, taste and prices of bread products vary a lot on the basis of

availability and competition yet it is fairly affordable all over. The products included in

the bread category involves:

• White Bread

• Sandwich Slices

• Milk Bread

• Burger Buns

• Bread Rolls

• Garlic Bread

• Fruit Bun

White BreadIt is the simplest form of all bread products and among all

it is the one which is most consumed. It is mostly

consumed during the breakfast time along with egg,

butter or else. In Pakistan simple bread is mostly

consumed in the form of Packaged Slices of different

brands or even if a local bakery is producing it by itself

then it is also consumed at a good consumption rate as

the middle class people are more concerned about less

price of FMCG products and a local bakery comparatively

sells its own made FMCG products at a lower rate.

The most common size of bread which is mostly consumed

in Pakistani Sliced Bread market is approximately of

400grams.

Sandwich SlicesSandwich slices are also made up of flour as the other bread products are

made up of but the main purpose that it serves is the sole use of it in

sandwiches, because Sandwich requires a different kind of bread design and

taste.

In Pakistan most of the population accounts for the rural areas where fast

food does not have any importance. People do care much about their regular

routine meals and going out with family in those rural areas is far away from

ones thoughts. Secondly due to agriculture and lack of industrialization there

is not any concept of light Supper meal during work. So this type of bread is

restricted to cities only. It is mostly consumed by the fast food restaurants.

Where as an average house hold uses white bread as its substitute.

Milk BreadThis type of bread contains some amount of milk in

it and sometimes also some amount of butter. Milk

and butter are added in it to make the bread

healthier.

This type of bread is not consumed much as it has

the issue of getting dry and spoiled. Due to less rate

of consumption this bread is not even produced on

large scale as there is a threat of great loss if it is not

sold on time.

According to a research made a couple of years back

the retailers are paid only for the units of bread they

sale and rest are returned. And among those

returned having a loss of 30 to 35% is normal

Burger Buns have a different structure with round

shape. They serve the purpose of making burgers.

Like sandwich slices, Burger Buns are also mostly

consumed by the restaurants in large quantities.

There is a clear cut difference in Burger Bun and

Sandwich Slices which is that a Burger Bun can not

be substituted by normal 400 grams bread where as

Sandwich can be made with it. Even then the sales of

Burger Buns is not as desired. The reason is again

less concentration over fast food in rural areas.

These Burger Buns sometimes are not sold for 2 to 3

weeks and the retailer has to bear the loss specially

in rural areas.

Burger Bun

Bread Roll

Although Bread rolls are not offered by all

the brands of Bread yet it holds a good

importance when it comes to demand to

these Bread Rolls.

They are almost always served with

Chicken Items in fast food restaurants

and are mostly consumed in this regard.

A bread roll is a piece of bread which usually small and

round. It is commonly considered a side dish.

Bread rolls are often used in the same way as

sandwiches are; they are cut transversely with fillings

placed between the two halves. And they are also

mostly consumed by fast food restaurants.

Fruit BunFruit buns are a typed of baked bread

roll, muffin or loaf made with fruit, fruit

peel, spices and sometimes nuts. The

fruit pieces are added into normal

bread in order to give it a sweet taste.

They are mostly consumed along with

tea in Pakistani culture. Garlic BreadGarlic bread is a crisp form of bread. It is

spread with Garlic butter or cheese. It is

French or Italian Bread recipe.

In Pakistan Garlic bread is mostly used as a

diet or as a starter before meals.

Competition

Dawn Bread

Dawn bread is one of the major players in Pakistani bread market. The positive aspect of it is its distribution which is fairly good throughout the country.It has a market share of almost 35 to 40%Its other products include:

•Fortified Bread

•Milky Bread

•Plain White Bread

•Burger Buns

•Fruity Buns

•Hot Dog Buns

Bake ParlorBake Parlor is a major player not only in the bread business but it has been success in reaching good brand extensions. With product categories like Frozen food, Snacks and others it has been playing a prominent role in the market. But in bread market it has a market share of 17% in Karachi city only. In its bread products following includes:

•White BreadS•Milky Bread•Bran Bread•Fruit Bun•Tea Rusk•Sheer Mall•Burger Bun•Hot Dog Bun•Sandwich Bread (Special)• Cake Rusk

WonderIt is also a major brand in the bread market but it has been focusing more on its business only in Karachi city. Even then it has a market share of 12%. Its bread products include:

•Wonder White bread

•Wonder Wheat Bread

•Wonder Hamburger Bread

•Wonder Buns

Bunny’sAlthough Bunny’s is older than even Dawn yet its name comes after Dawn probably because of the distribution factor. The Company continuously has been focusing its efforts to better understand the changing eating habits and retailers needs. They also try to anticipate consumer needs in order to provide convenience, nutrition and wellness through its product and services offerings. Bunny’s Bakery products include:

•Baqar Khani•Burger Bun•Cake Rusk•Deluxe Cake•Fruit Bun•Fruit Cake•Milk Bread•Naan•Plain Cake•Queen Cake•Rusk•Sandwich Bread•White Bread

Competition Analysis

Competitor Analysis Direct competition:

Olpers bread will be in direct competition with the following branded and non branded breads

• Dawn bread: the market leader

• Wonder bread

• Bake parlor

• Breadies

• Sunshine

• All bakery breads

Indirect competition:• All breakfast items – branded frozen prathas, home made parathas, rusks

• Snacks for kids – usually kids eat snacks or bread in the evening with milk

Product & price Dawn Bread Wonder bread Sunshine bread Bake parlor

Bran bread 1. RS 45

white breads White bread White bread1. 202. 323. 67

Fortified bread1. 202. 323. 67

wheat breads Grains bread ( walnut etc)

Brown bread1. RS 45

Plain white bread1. 202. 323. 67

Flavored bread ( choc etc)

Milky bread

Place & promotions

Dawn bread• Dawn bread has a very powerful distribution chanel and they cover the whole

Pakistan ranging from peshawar to karachi• The supplies are done 2 times on daily basis to retailers on demand basis• As far as the promotions are concerned Dawn bread depends mostly on BTL

activities. ATL activities are also done but on a very narrow scale Like an ad on 25year celebration or a billboard communicating the positioning

Bake parlor• Bake parlor distribution is not as strong as dawn bread, they don’t cover every

retailer instead their product mostly available on super stores or famous shops of every particular area or region.

• Bake parlor do run some tv ads which shows their interest in ATL

Positioning

• Dawn breadEat healthy, live healthy

Dawn bread focuses on building a bond between the brand and the consumers health, providing the freshness for the life.

• Sunshine breadEnriched with softness, no trans fat

Sunshine has positioned itself as a bread which provides the consumers the satisfaction of a completely healthier diet

Positioning

• Wonder bread

Bring back your memories and helps you make new ones

• Bake parlorTasty and healthy bread which provides the

energy to perform the routine duties

SWOT AnalysisStrengths Weakness

• high quality bread

• stays fresh for a longer period of time

• olpers is already an established brand name

• Engro has never made anything in bakery products

Opportunities Threats

• there is not enough communication been done by the leading brands; hence providing the opportunity to create excitement around the brand and make the positioning of the brand

• competitors performances and their solid market shares i.e dawn, bake parlor, wonder

Olper’s Bread

• Engro Foods Vision: “Aims at transforming the company within the next five years into first, a national food industry giant, then into a regional force and finally into a global player.”

• Olper’s Bread Brand Vision:“To penetrate the bread category, capture the market, sustain a dominant share while pleasing customers with great taste, continuous innovation, quality and a healthy solution for those who are looking to fit more nutrition into their overall diet.”

Brand Vision Plan Key Market Trends:

TRENDSBread is a central component of everyday nutrition in Pakistan, to the extent that it is usually used as a substitute for a fork or spoon while eating. However, instead of baking chapattis (traditional Pakistani bread made of flour and water) consumers now tend to buy readymade bread. Previously, women tended to make bread at home, but, as a result of the increased presence of females in the workplace, many no longer have the time required to do this and instead serve store-bought bread with meals.

COMPETITIVE LANDSCAPEArtisanal products accounted for a 76% share of baked goods retail value sales in Pakistan in 2009. The share of sales accounted for by artisanal products saw a two percentage point decline over the review period. Outside artisanal products, Campden & Chorleywood Food Research Association Group accounted for a leading 6% share of retail value sales, followed by Vita Pakistan Plants Ltd with a 5% sales share. Campden & Chorleywood saw the largest gain in retail value sales share of one percentage point in 2009.

PROSPECTSBoth retail volume and value sales are expected to see CAGRs of 7% over the forecast period. Sales growth will be driven by the expansion of the country’s middle class, which will increasingly migrate away from homemade to store-bought baked goods, due to the convenience which they offer.

TrendsWith the growing industry and overall economy each year, larger amounts of people are employed in professional careers. Increasing urbanisation dictates a faster pace of life, thus leaving less time for meal preparation at home, particularly when young families live separately from their parents. This impacts their increasing preference to dine outside which saves a lot of time as well as offering families the chance to relax and eat together.

Competitive LandscapeThe foodservice channel remains underdeveloped in Pakistan.

ProspectsFoodservice will see ongoing growth as the economic slowdown will not change consumers’ convenience and time-saving trends significantly. Generally, the target customers for foodservice are comprised of the highest earners so their quality of life is far beyond the expenses of dining daily at foodservice outlets.

TrendsDespite the changing lifestyles of young consumers, they continued to live with their families and therefore tended to be looked after with regards to nutrition. However, with the economy boost and increasing urbanisation, they sometimes need to move to cities for educational or work purposes, thus making them more responsible for their own meals: impulse snacking is therefore driven by this trend. Traditionally, Pakistanis are used to seeing a great amount of snacks being sold on streets and are used to snacking on their way to work. However, this has changed somewhat and consumers with higher incomes prefer quality and hygienic food, thus packaged snacks are becoming more popular.

Domain:The brand will compete for growth in the bread market only, with Olper’s White bread as the core brand and subsequently expanding within the market.

Objective:• Role: Grow aggressively• Challenge the major player i.e Dawn bread (55% market share)• Keep an increasing trend in the market share 35% to 40% by the

end of 5 years• Improve perceived quality among target consumers• Communicate Olper’s Bread differentiating factors extensively• To extend Olper’s Bread category with new variants.

Consumer:Those consumers who are conscious and concerned about the nutrition they take-in.Need: Most white breads are not preferred by diet-conscious, health-concerned consumers but the alternative bread types can be tasteless and dry, Olper’s Bread , a new bread with the taste and soft texture of white bread but with the fibre of 100% whole wheat bread will meet the needs of these people.

Positioning

1. ROOT STRENGTHOlper’s Bread root strength will be a more nutritional, healthy & fresh bread.

2. Competitive Environment:Olper’s Bread will operate in the baked goods retail environment, competing with artisanal products as well.

However Olper’s Bread will have few major competitors:• Dawn Bread: Currently the market leader with a 55%

market share, due to Large Distribution Network providing Nation-wide coverage and effective on time delivery and round the clock customer service.

• Bake Parlor: Will be the second big competitor that Olper’s bread will have to face. Bake Parlor roughly has a 29% share of the market, the positioning revolves around a healthy loaf of bread to perform routine duties.

• Wonder Bread: is a very small competitor with 12% market share

• VITA Bread: which competes at regional level with DAWN. The former is notconsidered a threat by dawn bread because it only concentrates on a specific niche of the market; and only supplies bread to milk shops and local bakery stores. Controls 4% of the market share

3. Target Market:Consumers who are conscious about their health and want to add more nutritional value in their diet.

4. Consumer Insight:

Consumers want a bread that is tasty, Nutritional and fresh at the same time but does not compromise on quality and is readily available in their locality.

5. Benefits:Olper’s bread, a wholesome bread for a wholesome family –providing rich nutritions to live and stay healthy.

6. Values, Belief, Personality:

• Values: We believe in consistently providing solutions for our consumers to lead healthy lives, from providing a nutritional packed breakfast to a healthy snack whenever and wherever they want.

• Personality: Olper’s Bread is a wholesome bread that nurtures the whole family to lead healthy lives, It appeals to mothers, diabetic people, health conscious people, fitness concerned people and children because of its better taste.Olper’s Bread’s personality is based on being a ‘cool’ breakfast component as most teenagers skip on breakfast and a personality that will appeal to them and will use communication that will be able to reach them and encourage including Olper’s Bread in their breakfast consideration.

• Olper’s Bread while still being ‘cool’ will also will be ‘fun’ to include kids and excite them to have an Olper’s Breakfast- which will please their mothers, the ‘wholesome bread’ because the brand will be most strongly communicated to mothers as they are the majority decision maker in the buying process.

7. Reasons To Believe:Olper’s Bread is a caring brand which cares about its consumers health and well being. We value health, celebrating life and enriching our lives with all the goodness around us.Some people want to live strong and live long, to still be able to physically go on about performing their daily duties without assistance in their old age, to see their grand children grow, to perform better in their daily lives backed by pure natural power, to be fitter, leaner and in control of their lives – These are the same people that value what we value: A good solid life

8. Discriminator:“The taste and soft texture of white bread but

with the fibre of 100% whole wheat bread”

9. Essence:• Olper’s Bread:– Enriching Life– Providing elements for Longevity of life

Launching The Brand

Marketing Mix• Product

Bread:- White Bread ( with 100% fiber of whole wheat)- Farmer’s Grain- Sunflower and Linseed

• Price-White Bread : Rs 20

Rs 32 Rs 67

- Farmer’s Grain : Rs 45-Sunflower and Linseed : Rs 47

• Place:-A Class Stores-B Class retail stores-Kiryana Stores.-CSD-Makro, Hyper Star Imtiaz, Naheed’s, Metro

• Packaging : Food-grade plastic packaging for bread which is environmentally-friendly

Colored plastic bands will be used to display 'freshness‘ each color will depict the day it was manufactured, an added assurance of ‘freshness’ long with the expiry and manufactured date.

Day Color

Monday Red

Tuesday Blue

Wednesday Green

Thursday Purple

Friday Orange

Saturday Pink

Sunday Yellow

Trade Marketing Plan• Olpers Bread will be initially launched in Karachi during its introductory

phase, once market testing is achieved and we have gained some consumer insight, it is to be distributed in major metropolises in Pakistan including Lahore, Islamabad, Rawalpindi, Quetta, Multan, Hyderabad, and Peshawar.

• Distributor margin will be fixed at 8% and Retail Margin will be fixed at 10%. Product older then two days will be replaced, with fixed marketing return of 3% on expired or replaced product.

• Retailer will receive 2% cash discount for prime location, plus 5% discount for first six months of launch.

• Retailers that are able to sell all products, and none are to be replaced, retailer will receive 10% discount on next order.

Retailer Bonus Slab

Bread Sales Per Week in Units

Discount Slab Min Units Max Units Discount on sale

Slab 1 50 99 1.00%

Slab 2 100 199 2.00%

Slab 3 200 - 4.00%

• Merchandising will include promotional material such as stands, posters, shelf strips, sign boards, racks. The goal will be to capture the consumer at the store, and have trader help in pushing product sales.

• Retailers will receive small cash allowance on merchandising.

• Point of Purchase will include all retail outlets, all Milk outlets, and all bakery’s across Karachi.

The Communication Plan

• PRIMARY AIMTo create awareness and communicate the differentiating factor extensively through intense advertising in order to grow aggressively and capture a decent market share

• SECONDARY AIMTo increase sales and generate profits for the brand

• BIG IDEA ‘Healthy Happiness’ (To have a happy & healthy life)

• PROPOSITION FOR THE ADS

o USP: Quality ingredients that are pure & natural, fluffy and soft breado RATIONAL APPEALS: Packaging, Red Color, Range of Products, Product Attributeso EMOTIONAL APPEALS: Family values, love & respect, healthy life, in-depth association of

family members based on their choice of bread

ABOVE THE LINE ACTIVITIES (ATL)• TVC• TERRESTRIAL

– PTV, PTV Home, ATV, ATV Plus• CABLE

– GEO News, GEO Entertainment, AAG, ARY, MASALA TV, ZAIQA, ARY Zouq, HUM TV, AAJ, Indus Vision, TV ONE, Express News

• PRINT• NEWSPAPERS

– Jung, Dawn, Express, Aman, Nawa-i-waqt• MAGAZINES

– Living Express, Home Express, Mid-Week Magazine, Sunday Magazine, Akhbar-e-Jahan, Family, Herald

• RADIO - FM 107, FM 100, FM 101 (These are the main ones to achieve wider listenership)

OUT OF HOMEBillboards, Pillar Wrappings, Vehicle Graphics, 3D Boards, Transit Advertising, Standees at POS

BELOW THE LINE ACTIVITIES (BTL)• Point of Sale Kiosks• Stalls in the Food Exhibitions• Promotion in Supermarkets and Hyper marts (Makro, Metro, Imtiaz,

Naheed, CSD etc.)• Mobile Vans in different towns (distributing free samples)

THROUGH THE LINE ACTIVITIES (TTL)• All the BTL activities will be shot properly and would be aired on

different channels so that consumers can develop an association with the brand

Brand Metrics

Product Performance

• Olper’s has a very strong association with the consumers and has a very strong market for its milk

• Olper’s enjoys a market share of about 50%

• Consumer’s response towards the Olper’s bread is very positive and they like to purchase it instead of Dawn, Bake Parlor or Brady’s just because these brand have a lot of quality issues and consumers do not get fresh bread everyday

Positioning

Olper’s bread is positioned as a quality, fresh, fluffy, tasty and healthy bread so that the

consumers would get a fresh bread everyday and the bread would be more soft and fluffy

as compared to the competitors

Brand Dynamic Pyramid• PRESENCE

– Olper’s is one of the leading brands in the milk industry and has no as such quality issues till now. When consumers would see the Olper’s bread on the shelves they could easily perceive the good quality of this bread because they all are familiar with the good quality of Olper’s milk

• RELEVANCE– It is relevant to the needs of consumers

because now a days everyone is conscious about the quality of product and consumers have a lot of issues in getting a fresh bread

• PERFORMANCE– Olper’s has been delivering quality for past few

years thus Olper’s bread would also be committed in delivering the quality bread to its consumers.

• ADVANTAGE– Since Olper’s has a very strong relation with its

customers, it would provide a more healthy, soft and good quality bread which would be an advantage as compared to the other competitors

• BONDING– Consumers have a very strong

emotional attachment with the Olper’s that could be seen during the surveys

– A very high level of emotional appeal will be used in the advertising campaigns that would enhance the customer attachment with the brand

– Providing a consistent good quality would also enhance the relationship

MARKET RESEARCH

Do you eat bread?

93%

7%

YesNo

Which bread do you purchase?

56%

19%

9%

8%

4% 4%

DawnBake ParlorBrady'sWonderSunshineOther

Which pack of bread do you buy?

10%

71%

19%

SmallMediumLarge

What do you look for in a bread when you purchase it?

69%

8%

11%

12%

FreshnessWell BakedHealthyTasty

What are the areas of improvement?

72%

6%

7%

15%Longer period of FreshnessFungus FreeBreads are usually not baked wellFlavors can be added

If Olper’s introduce a bread, would you buy it?

97%

3%

YesNo

Through our market research we found out that the expectations of people from Olper’s are very high because they have complete assurance of its taste and quality. In other words we can say that it is positioned very well in the minds of the consumers

93% of the people said that they are the regular consumers of bread which means that we have a very broad market

The key elements that people look for in the bread is ‘freshness’ and ‘quality’ which leverage the entry barriers for Olper’s because both the freshness and quality of the existing brands are very average

CONCLUSION

People still look for ‘longer period of freshness’ for the bread and this insight can be catered by introducing a bread which remains extensively fresh

Based on the existing image of Olper’s, people are willing to buy its bread instead of any other brand because of their quality association with it

So the idea of launching a bread would not be profitable only in the short-term but also in the long-run

CONCLUSION