Group No 9, Presentation on OLPER’S Milk by Engro Food Chemical Lmtd, beeni.ppt

Presentation on

OLPERS

Presented to: Mam.Ammara

Acknowledgements

Firstly we would thank Allah for giving us the opportunity and the resources to be able to do something productive with our lives

Then our sincere thanks to Mam.Ammara Akram for helping us throughout this report.

Lastly we would like to thank our families for their incessant support and approval.

Group Members

Beenish JahangirBsIT-07-04Jamilla bbBsIT-07-48Tayyaba JahangirBsIT-07-33Kiran ShakoorBsIT-07-05Uzma NoreenBsIT-07-08Nudrat RehmanBsIT-07-47

BsIT-4th semester

Contents

IntroductionSegmenting Targrting and positioningSWOT AnalysisPEST Analysis4Ps in MarketingCustomer Based Brand Equity

Beenish Jahangir BsIT-07-04

Introduction

Abstract

This report is about the marketing of Olpers from the time when ENGRO foods came up with the idea of adding a new product line. Brief history about Olpers and how it came into existence. The corporate structure and organizational hierarchy of ENGRO Fertilizers, its mission statement and the vision. How they have segmented its target market and positioned the product in the minds of the consumers.

The SWOT analysis in which we talk about the strengths, weaknesses, opportunities, and threats the organization is facing since its product was launched. The PEST analysis, about how the external factors affect the growth and stability of the product. Promoting the product and making consumers aware of Olpers, using the 4 Ps Conclude the report by discussing the social responsibilities in which ENGRO Fertilizers is involved and the future plans of the organization for Olpers.

Engro Foods History

Engro Foods (Pvt.) Limited (EFL) has been established in 2005

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

Vision

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

Core Values

1. Leadership 2. Innovation 3. Diversity and International focus 4. Quality and continuous Improvement 5. Candid and open communications 6. Individual growth and development 7. Enthusiastic pursuit of profit 8. Ethics and integrity 9. Safety, Health and Environment

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

Jamilla bbBsIT-07-48

Segmenting and targeting the market for olpers

Segmenting and targeting the market for olpers

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

Demographic segmentation

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.

Psychographic segmentation

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

Behavioral segmentation

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

Positioning the brand

Olpers positioned the brand by taking a number of following steps:

Packaging of olpers milk and olwell in red color and Olpers cream in purple color .By selling proposition for olpers is: jo dil khol kay jeetay hain unheen k lye ha olpers.

Tayyaba JahangirBsIT-07-33

SWOT AnalysisStrengths Weaknesses Threats Opportunities

Strengths

1. Engros Back Olpers 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 EFLs products. 4. Its taste, quality proposition and world-class quality proposition system.

4. Strong consumer & product research AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.

5. Third-Generation Plant

third-generation UHT milk plant in the country.Bactofuge technologyplant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).

Weaknesses

1. Olwell TVC 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. Owning Red Color . There is no color association attached to Olpers.

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

4. Narrow brand portfolio EFLs brand portfolio still consists of just 3 products i.e. Olpers Milk, Olwell Milk and Olpers Cream.

Opportunities

1. 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 with 32 billion liter of milk 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 Olpers comes up to the expectations of the customers For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk.

2 Competition For Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

Kiran ShakoorBsIT-07-05

PEST Analysis

Political factorsThere 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 7 percent. This thing is really hurting the purchasing power of Pakistani consumers. packaged milk industrywhich 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 factorsmilk yields per animal have been increased through scientific feeding & breeding our project is to establish forms. 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

Uzma NoreenBsIT-07-08

4Ps

PRODUCT

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

It is EFLs 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 Litre (1000 ml ) : 12 packs per carton Litre (500 ml) : 12 packs per shrink-wrapped tray Litre (250 ml) : 27 packs per shrink-wrapped tray

Olpers Cream

The premium cream processed hygienically from pure fresh milk, Olpers 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

Litre (250 ml) : 27 packs per shrink-wrapped tray

Olwell Hi-Cal Lo-Fat (HCFL) Milk

Launched 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 Litre (500 ml) : 12 packs per shrink-wrapped tray

Placement & Distribution

According to Mr. Ali Akbar, Director Marketing EFL, In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your COMPETITORS WEAKNESS! 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 Olpers is available in 80 cities across Pakistan.

It reflects the companys intention to become a big player in the industry, both on a ational and international level.

Engro FoodsLimited has its own distribution network.

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

Promotion & Advertising Olpers 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.

Olpers Milk Media mix for Olpers milk includes TV, print, outdoor, radio & BTL activities. Olpers

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

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

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) Olpers Nestle Milkpak Haleeb Haleeb Dairy Queen

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