Breif Introduction of Olper's

Presentation on

Course Instructor: Sir Shahood Alam

GROUP MEMBERS

1. KASHIF ALI2. AADIL HANIF

MBA (Evening Program)Semester IVUniversity of Karachi

Contents

IntroductionSegmenting Targeting and positioningSWOT AnalysisPEST Analysis4P’s in Marketing

Engro Foods’ History

Engro Foods (Pvt.) Limited (EFL) was incorporated in 2004.

Location Of Plant1. Sukkur 2. Area on 23 acre land Capacity1. raw milk reception capability of 300,000 liters per day 2. 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

Vision

"Our vision is to become a fast expanding mega foods company.”

Departments

1.Administration 2. Finance and Accounts 3. Human Resource 4. Marketing 5. Milk Procurement 6. MIS 7. Production 8. Quality Assurance 9. Supply and Distribution

Segmenting and targeting the market for olper’s

Olper’s segments the market keeping some basic things in mind like milk to be white, carefully processed, and good for health and bones.

Demographic segmentation

Olper’s products are not bounded to any particular age, gender or lifecycle stage, the brand is for all the users in upper or middle class families.

Psychographic segmentation

On the basis of psychographics, factors such as personality traits, lifecycles and values the marketers at olper’s have segmented the market.

Behavioral segmentation

Products have been segmented on the basis of benefits that consumers seek in the milk.

Positioning the brand

Olper’s positioned the brand by taking a number of following steps:

Packaging of olper’s milk and olwell in red color and Olper’s cream in purple color .By selling proposition for olper’s is: “jo dil khol kay jeetay hain unheen k lye hay olper’s.

Strengths 1. Engro’s Back Olper’s is a brand of ENGRO foods.ENGRO foods can easily afford research and development. ENGRO can distribute the brand through better channel.

2. PR with farmers ENGRO has a strong bond and long term relationship with the farmers who are willing to supply milk to the company.

3. Positive response from customers In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s products. It has a good taste, and world-class quality proposition system.

4. Strong consumer & product research AC NielsenMindshare JWT Asiatic andMARS marketing and advertising agencies.

Weaknesses

1. Olwell TV COMMERCIAL Olwell ad which is based on Western life style.Failed to analyze in Pakistan, where practicing Muslims reside,Ignoring the ethics, religious beliefs and cultural values.

2. Milk collection & distribution costs EFL’s 34 out of 40 milk-collection centers are located in Punjab, 1Sukkhur (Sindh). It increases collection & distribution costs.increases the chances of milk getting spoiled because of long travelling time.

3. Narrow brand portfolio EFL’s brand portfolio still consists of just few products i.e. Olper’s Milk, Olwell Milk, Olper’s Cream,Tarang (Liquid & Powder), Owsum flavored milk, O’more Ice Cream & Olfrute (Juices & Nectars).

Opportunities1. Increased funding by Government Government has decided to increase farmers’ funding.

2. Increased consumption of PLM Each competitor in the milk industry wants to increase penetration of processed liquid milk.

3. Awareness Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.

4. Third largest producer of milk Pakistan produces 32 billion liter of milk in a year,3 billion litres in the next few years. This is quite an opportunity for ENGRO Foods as there is lot of growth in this part of the Sector.

Threats

1 Perceptions and Price Differentials

Consumers’ perceptions and price differentials can cause a threat for the company. It is important that Olper’s comes up to the expectations of the customers For example, loose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy loose milk.

2 Competition

For Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

Political factors

There are no specific government rules and regulation but because of unstable political conditions strikes and road blocking is creating problems for delivery on time

Economical factorsInflation rate of Pakistan for the current fiscal year has grown to 12.69 percent. This thing is really hurting the purchasing power of Pakistani consumers.Packaged milk industry 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 these companies to either decrease their prices or at least keep prices stable.

Social factorsIn Pakistan the norm is to get up in the morning and get the fresh milk (straight from the cow) from the ‘doodh wala’. It is a general perception that only loose milk is fresh and free from preservatives and thus healthy .For substantial penetration of the market, packaged milk providers have to overcome all such perceptions and generate awareness about the safety and healthiness of packaged milk.

This will however require a lot of time and patience because most of the people are not willing to spend additional amount of money on packaged milk when they are convinced that it has a lot of preservatives and is unhealthy.

Technological factors Our project is to establish farms. First 14

farms in Okara, Punjab have been formally established as model farms. Currently, most equipment for storage and processing is being imported from Western countries. Milk yields per animal have been increased through scientific feeding & breeding.

Marketing Mix Strategies

ProductPlacePromotionPrice

Company’s Product Portfolio•Olper’s Milk•Olwell (HCLF) Milk•Olper’s Cream•Tarang – Tea Whitener (Liquid & Powder)•Owsum flavored milk•O’more Ice Cream•Olfrute Juices & Nectars

PRODUCT

Olper’s MilkLaunched on March 20,2006.Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats.

It is EFL’s premier brand, and the choice of quality-conscious consumers who only go for the best.

It is available in easy-to-open, 6-layered Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.

Shipping Units

1.5 Litres (1500 ml) : 8 packs per carton 1 Litre (1000 ml ) : 12 packs per carton ½ Litre (500 ml) : 12 packs per shrink-wrapped carton ¼ Litre (250 ml) : 27 packs per shrink-wrapped tray.

Olper’s Cream

The premium cream processed hygienically from pure fresh milk, Olper’s Cream is luxuriously rich in its thickness & nutritional value. It promises the richest & scrumptious assortment of tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc.

It was launched on September, 2006.and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months shelf life.

Shipping Units

1/5 Litre (200 ml) : 24 packs per shrink-wrapped tray

Olwell Hi-Cal Lo-Fat (HCFL) MilkLaunched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the richness of pure milk. It is an ideal choice for weight-watchers and heart patients. It is also high in calcium content, which prevents osteoporosis.

•Packed in 6-layered Tetra Pak Brick Aseptic red packaging with easy-to-open plastic cap, it comes with a 3 months shelf life.

Shipping Units 1 Litre (1000 ml ) : 12 packs per carton

Placement & Distribution

According to Syed Ali Akbar, Director Marketing EFL, “In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your Competitor’s Weaknesses!Engro Foods did exactly that.

They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan.

Having kicked off simultaneously in 20 cities across Pakistan.

The launch has been ambitious and currently Olper’s is available in 80 cities across Pakistan.

It reflects the company’s intention to become a big player in the industry, both on national and international level.

Engro Foods Limited has its own distribution network.

EFL has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan.

Promotion & Advertising Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is concerned, with TV Cs, print ads, radio commercials, billboards and activities including direct consumer and shop branding activities.

Olper’s Milk Media mix for Olper’s milk includes TV, print, outdoor, radio & BTL activities. Olper’s

Due to an appealing color scheme, which stands out in the clutter and thanks to the EFL’s strong relationship building and special discounts to retail outlets,

Olper’s has gained a proper shelf placement in the presence of competitors like Nestle and Haleeb .

OLPERS“ Subha Bakhair Zindagi”

Olpers’ campaigns

Price

EFL IS pursuing the competitive pricing strategy for its products.

In competitive pricing the price of the product is determined considering the price of major competitors like Nestle, Haleeb etc.

PRICE (milk)

Size (ml)

Olper’s

Nestle Milkpak

Haleeb

GoodMilk

1000 65 65 65 62

500 36 36 36 -

250 18 18 18 18

ConclusionOlper's is becoming the leading brand in the market. Olper's has earned lion’s share and goodwill in the market as well as in the

minds of the customers.But this is not the End because

"SKY IS THE ONLY LIMIT"

THE END