Marketing of OLPER's

Executive SummaryExecutive Summary

The repot at hand provides useful insight about Engro Pakistan Ltd, a private fertilizer firm that keeps about 21 % of market share in the milk food industry Pakistan. Established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx. 20% per annum Olper’s achieved peak market shares of 12.3% within 6 months of launch Other products launched –Olper’s Cream, OLwell –High Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing capacity to increase by 200% to 200 million liters annually Will become the only company in Pakistan covering the entire milk catchments area Already has the second largest chilled milk collection system in the country Distribution network to double from 58 towns to 119 towns by the end of 2007JV with global food major in advanced stage of negotiationForces in the external environment that affect company’s performance are, political, economic, social and technological whereas company-specific external forces are Major Players in the food Industry, which are ten in number; Nestle being the leader with 41 % market share. Typical packed milk consumers are the children. Therefore, Engrofoods has a large number of consumers throughout the country. After the environmental scan, situational analysis ie.SWOT analysis of the company has also been done. Company’s expansion plans marketing mix are also discussed. Finally, certain recommendations are also given at the end of the report.

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Introduction to Engro Pakistan:

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in 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 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.

Mission Statement:

Engro is progressing day by day because they have a vision and mission the keeps the motivated and keeps them going. Their mission as they describe as:

“Our mission is two fold, to help farmers maximize their farm produce by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in petrochemicals, information technology, infrastructure, food and other agriculture sectors.”

And further describing the adoption fashion they say,” In pursuing the mission we shall at all times be guided in our conduct and decision making by our core values.”

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Vision and Core Values of Engro:

Engro’s vision is

“To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders”.

A Diversified Conglomerate.

Fertilizer Business

Agriculture accounts for 25% of GDP and 45% of employment in Pakistan Second largest Urea producer of Pakistan .Capacity975 KT/A Market share20% Second highest phosphates sales (~400KT/A) –Market Share 23% ECPL’s Margins are by far the best in the industry. Zarkhez (NPK) Market leader -Capacity 160 KT/A –Market Share 95% Urea shortage expected to grow to 1.2 million tons/annum by 2010. World’s largest single-train Urea plant of 1.3 million tons being setup at a cost of US$ 950 million. On commencement of operations in mid 2010, cash fixed costs of the new plant will be a third of the existing plant; scale & brown field synergies Gas consumption at the new plant will be 15% less than the existing plant. Engro’s Daharki complex will become the world’s fifth largest Urea production site; 2.28 million tons, 3 plants.

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Established in 2006-100% owned subsidiary Pakistan is facing growing energy deficit -Energy consumption has been growing at 7% per annum Setting up a 220 MW gas based power plant at a cost of $220 million with commercial operation in 2009 Short-listed along with 3othercompanies for privatization of Jamshoro Power Company

Engro Innovative Automation Limited

Acquired majority stake (51%) in a knowledge based company Innovative Engineering & Automation Ltd in 2003 Market Leader in domestic Industrial Automation –Honeywell distributor in Pakistan Expanding internationally to synergize, and benefit from lower costs at home and higher demand abroad Now operating in Dubai, UAE which contributes 25% of revenue and half of the profit Company’s first IP product “iboiler”launched internationally in 2006 Acquired an automation company in the US in Dec. 2006; mandated to develop outsourcing opportunities

A 50-50 JV with Royal Vopak of Holland; established 1997 Royal Vopak is the world’s largest independent tank terminal operator Engro Vopak handles 70% of liquid chemical imports in Pakistan .Setting up our country’s first Cryogenic facility for ethylene importsWell positioned for setting up proposed LNG terminal –under active consideration of the government; Cost US$ 350 –400 million.

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Engro Vopak Terminal Limited

Engro Energy Limited

Established in 1999. 80-20 JV with Mitsubishi Corp. Pakistan’s only PVC manufacturing plant; facing buoyant domestic demand since 2006 Successfully placed 22% of sales in diverse export markets from Australia to East Africa in prior years (2004 –2005) Expansion and back integration underway –imported ethylene + new caustic soda plant; EDC/VCM/PVC

Established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx. 20% per annum Olpers achieved peak market shares of 12.3% within 6 months of launch Other products launched -Olpers Cream, Olwell –High Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing capacity to increase by 200% to 200 million liters annually Will become the only company in Pakistan covering the entire milk catchments area Already has the second largest chilled milk collection system in the country Distribution network to double from 58 towns to 119 towns by the end of 2007JV with global food major in advanced stage of negotiation

Food industry in Pakistan.

The food and its allied products industry is considered Pakistan’s largest industry, and is believed to account for 27 percent of its value-added production. Trade sources estimate the sector's total value of production is over rs.46

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Engro Asahi Polymer &Chemicals. Limited

Engro Food Limited.

billion (rs.58.00 equal usd 1.00 at the current exchange rate). Pakistan’s food industry produces cooking oils, hydrogenated vegetable oils, sugar, flour, dairy products such as milk, butter, yogurt, cheese and ice-cream, biscuits, breads and confectionery, fruit juices and fruit juice drinks, carbonated beverages, snack foods based on rice, potatoes, corn and pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some cereals and canned fruits. The fish, meat, fruit and vegetable sectors are underdeveloped partly for lack of adequate infrastructure, including storage and transportation facilities. Government policies and plans are expected to greatly increase the development of seafood’s industry.Development and implementation of milk standards is also essential to define milk price based on quality. Dairy science and technology education universities also need to support industry in dairy breeding, nutrition, industrial management and product quality. Presently no under-graduate program is available in the country to support this sector. Presently, Pakistan has only a few scholars in prime principles of dairy science including animal breeding and genetics, dairy nutrition, dairy management, and dairy technology to support and develop dairy industry. It is essential because the veterinarian could only provide support to the animal industry developed on the animal production science principles. Animal or dairy production science is altogether a different subject than that of veterinary education.In conclusion, development of dairy cooperates, restructuring of

Extension; research and educational institutions could perk up rural oriented dairy sector to market oriented dairy industry that guaranteed food security social and economic growth in Pakistan.

Engro Food

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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

We believe that our recent successes will take us to our 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!

Our Brands.

Our Affiliates

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Our Values .

IntegrityWe have an open disclosure policy and transparent processes. All our business activities / transactions are carried out honestly and with fairness.Our PeopleHave passionate people with intelligent and firm approach towards business. To facilitate these people we give those challenging opportunities, training, fun loving environment, necessary resources and facilities. We publicly recognize our talent.InnovationInnovation is the way of life at EFL. It is valued, encouraged and rewarded in all aspects of our operations. CSRWe 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.

Olper’s Milk

Olper’s is UHT Milk UHT means Ultra Heat Treatment. In this process the milk passes through 140 degree centigrade in 3 seconds and then immediately cooled to 20 degree centigrade in the next 5 seconds, which in turn kills all the bacteria. This is the most sophisticated and advanced process in the world. At Engro Foods Limited we use the indirect method of UHT meaning that milk is heated by steam passing through stainless steel pipes outside milk. All other brands in Pakistan use the direct method of heating that is by

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injecting steam in the milk, this adds water content in the milk, where as indirect heating in fact evaporates water from the milk. This is what makes Olpers the "Thickest Milk".

Mission

Vision

Competitive Analysis.

ScopeWe consider all Tetrapak milk products as competitors of Nestlé Milkpak

Market Share

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“Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value “

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.

Name Market share%Nestlé Milkpak 41Haleeb 30Olper’s 21Others( Good milk) 08

Base of Competition.

Price is not a base of competition for Olper’s because the prices of Olper’s and its competitors are almost same so base of competition is quality and purity.

Threat of new entrants

Some brands are introduced in the milk market such as Nurpur and Sabeen, Good milk. These are seasonal brands so Engrofoods Olper’s is not afraid of these seasonal

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Milk packHaleebOlper’sOthers

brands because these brands try to capture those markets, which are not effectively covered by Olper’s. Prices of these brands are not much different from Engrofoods Olper’s.

Major Competitors

For Olper’s Nestlé Milkpak and Haleeb are the major competitors it captures about 41% Nestlé Milkpak and 30% by haleeb of the market share. Prices of Haleeb and Nestlé Milkpak are same as to Engrofoods Olper’s.

BCG Matrix

Market Share

High Low

M H Stars Question Mark

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arket G

rowth

igh OLwell

Low

Cash cows Dogs

MarketingMarketing is the role used by the business to plan, price, promote and distribute products/services to individuals. The Engrofoods Olper’s marketing includes:

(I)Situational analysis

(ii)Target Market

(iii)Objectives/Goals

(iv)Marketing strategies and the marketing mix

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(v)Monitoring & Controlling

I - Situational analysis

SWOT Analysis

Strengths (S)

1. Worldwide fame of Engro.

2. Efficient milk collection system.

3. Keeping high quality standards.

4. Integrated distribution and warehousing facilities.

5. Successful related diversification.

6. Generic brand name of Olper’s

7. Large market share of Engro innovative and chemicals.

8. Having Good reputation in the market by strong brand name i.e. Engro

Collect raw milk from approved dairy farms and process it ensuring the highest standards. Some people think that perhaps olpers milk is made from chemicals or synthetically but this is not true.

Weaknesses (W)

1. Unable to compete in price sensitive segment of UHT milk market.

2. Under-utilization of the capacity.

3. Unable to fulfill the demand of local powder milk market.

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4. Not yet ISO certified

Opportunities (O)

PAKISTAN with 33 million tones of milk production per year is ranked as world’ fifth leading milk producing economy. Per capita milk availability is about 240 liter per annum that is much higher than most of the developing countries. therefore, here is high opportunity for growth .

1. Population growth rate.

2. High urbanization rate.

3. High literacy rate.

4. Flexible government policies for food industry.

5. Have significant growth opportunities

6. Has sufficient capital to expand.

7. Has the potential to innovate and differentiate the company's products to sustain a competitive advantage

8. May merge with other global businesses to eliminate competitors.

9. Having Capable of expanding into other markets of the world.

Threats (T)

Has many major global competitors with its main one being Nestle Pakistan, Haleebfoods can be substituted by other milk producer made by its competitors. These competitors may develop marketing strategies to eliminate The Engrofoods Olpers. There may be an economic downturn in the business cycle.

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1. High inflation rate.

2. Low purchasing power.

3. Decrease in GDP growth rate.

4. Increasing interest rates.

5. Decreasing investment.

6. Recessionary period in business cycle

ii-Target Marketing.

Demand Pattern.Engrofoods Pakistan believes that demand pattern for Olper’s or milk is cluster demand. Cluster demand is a demand in which consumer’s needs and desires can be grouped into two or more identifiable clusters, each gives its own set of purchase criteria. Packed milk buyers want Quality others want affordable price and still other want both and easy availability.

Possible Basis of Segmentation.There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Engrofoods Pakistan establish different basis for

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segmentation such as demographics, psychographics, behavioral segmentation, personal demographics and benefit segmentation. It is interesting to know that only in Karachi sale of Olper’s is 50% of the total sales we can conclude that its usage rate is high in urban and denser areas. Behavioral segmentation divides buyers into groups based on their knowledge attitude, usage or responses to a product. Buyers can be grouped according to occasions when they get their idea to buy, actually make their purchase or use the purchase item.Engrofoods Olper’s is a multipurpose brand, it means that you can use it in making tea, sweet dishes and drink it as healthy diet. In Pakistan, mostly it is used in making tea and tea is more often consumed at breakfast and in evening time an important base in behavioral segmentation is attitude towards product. Pakistani society is not so much educated on large scale. People have some time negative attitude towards Packed milk Such as infra red waves have been used in packaging material and some people have some doubts about its quality. Engrofoods gives its special consideration toward this issue. The company is trying to change the people’s perception about its product through advertisement. In personal demographic segmentation the company gives importance to income and household size. They have offered different sizes of Engrofoods Olper’s for different consumers belonging to different income levels. They give special importance to benefit segmentation. They promote the symbol of purity and try to highlight this in the advertisements. Engrofoods uses multiple segmentation bases for example they use benefit segmentation to identify consumers seeking different benefits. They also use income level as a powerful base of segmentation and they use geographic demographic segmentation.

Market Targeting.

After developing possible basis of segmentation, the company now has to evaluate the various segments and decide how many and which one to target. Engrofoods

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evaluates different segments for Olper’s on the basis of potential and growth of different segments. Selecting Market SegmentsAfter evaluating different segments, the company must decide which and how many segments to serve. Engrofoods adopts differentiated marketing strategy to cover the market for its brand i.e. Olper’s For example for different income level consumers Nestlé Milkpak offers a variety of products. It also offers various sizes of product for different classes.

1000 ml and 1500ml - for upper middle class and lower upper class 500 ml and 250 ml - for middle class and lower middle class 250 ml - for small town area

The Engrofoods Olper’s is generally for all consumers. However, there are some brands, which target specific consumers. Especially the house wives they are especially keen about their families’ health and main recommenders for the buying of good quality milk and of course these all fulfill by Olper’s.

iii-Objective and Goals.

Engrofoods main objectives are to supply everyone their favorite olpers Milk and to satisfy the consumer needs and wants. Engrofoods second main objectives are to provide profit to the shareholders and increase the market share.

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.

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VI-Marketing strategies and marketing mix

Marketing mix:

Product

The Engro foods products include Olpers Milk, Olpers Cream Tarang Milk and Owel.The Engrofoods packages its milk Olper’s into packs of sizes 1500ml 1000ml, 500mL and 250mL. Engrofoods is the most well known trademark, recognized by 94 per cent of the Pakistan’s population. The business is very successful and holds a very good reputation.

Marketing strategies for Product.

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The Engro Food uses marketing strategies for Olper’s to differentiate its product from its competitors to gain a competitive advantage.

Price

The prices of Engrofoods Olper’s vary according to the the size. The prices of the Available Olper’s Packs are shown below.

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Olper’s Olper’s Olper’s Olper’s1500ml 1000ml 500ml 250ml Rs.12

Pricing Methods/Pricing strategies

The Engrofoods Olper’s are sold in retail stores, convenient stores, Departmental outlets etc. The pricing methods/strategies are set by those the company sells to. Convenient stores, Departmental outlets usually sell Olper’s at a fixed price according pack sizes.

However, retail outlet uses pricing methods and pricing strategies when selling Engrofoods Olpers.

Pricing methods

Pricing method Explanation of pricing method

Competition-based pricing Engrofoods Olper’s is usually priced below, above or equal to its competitors' prices.

Discount price Olper’s are often marked down during sale periods and special occasions. Like Ramadan this will: Generate sales Increase profits

Pricing strategies

Pricing strategy Explanation of pricing strategy

Meet-the-competition pricing The Engrofoods Olper’s pricing are set around the same level as its competitors.

Psychological pricing Most of the Engro foods for Olper’s use this method of pricing. For example, for a pack of 250mL x 27 packs of Olper’s milk it is priced at Rs.320 instead of Rs.330.This pricing strategy makes consumers perceive the products to be cheaper.

Packaging

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Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages.

Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display.

Engrofoods follow the entire Packaging standard for the UHT Olper’s Milk as also considered the Information and Marketing aspects and giving all the information regarding products precautions and information regarding feedback

Milk consumers in Pakistan are today becoming more and more aware of the diseases associated with the use of open milk. The Consumer Preference Survey shows that 89 per cent of the people in cities considered packaged milk as safe for consumption, whereas only 34 per cent respondents considered loose milk as safe. More than half the respondents (56 per cent) actually preferred the UHT milk. Besides, milk is used in tea, desserts and other foods and beverages. Though, during boiling few common bacteria get expunged, but quite often, the dangerous pathogens survive normal boiling temperatures also. However, when Olper’s milk is processed for packaging it goes through a number of steps that ensure purity. Vitamin D is added to fresh milk and it is pasteurized at 280oF (138oC) for at least two seconds which increases the shelf life. As it flows out of the pasteurizer, most Olper’s milk is homogenized by being pumped through extremely tiny openings. As a result, the

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milk fat is broken up into particles too small to stick together and remains mixed throughout the milk rather than rising to the top as cream. Olper’s packaged milk has been regarded as one of science's most useful techniques as it assures fresh, high-quality milk to the consumer without the hassle of refrigeration. It has also become easier to transport thus people living in remote areas can also benefit from it now.

The UHT processed milk is cooled rapidly to at least seven degrees Celsius and packaged into pre-sterilized containers and aseptically sealed. Since bacteria cannot enter the UHT milk, it can be stored at room temperature for at least three months.

Olper’s milk has clearly surpassed open milk in its advantages and should be encouraged more so that people realize its benefits and switch to a healthier lifestyle.

Promotional strategies.

The Engrofoods Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Olper’s milk. This source allows the company's products to reach a large audience. The latest television advertisement for Olper’s milk was the

“SUBHA BAKHAIR ZINDAGI”

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Effective advertisement might be successful in generating initial sales (user trials for the brand), but in the long run only Quality products are able to survive and generate repeated sales. The high ethical standard of Engro Foods is the driving force behind a quality product which has outperformed all expectations and has penetrated the market at an enormous rate.

According to the Internet survey that Top 10 Brands that advertised on Entertainment Channels in Pakistan 2007 Olpers is on 7th and here are no Competitors seems.

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Top 10 Brands that advertisedOn Entertainment Channels

Events Promotion

World of Olper's " Float, Sunday Bazaar, Stall Promotion, Merchandising " at Lahore

During Ramadan, Olpers outsold its competitors like Good Milk or Haleeb. The reason is that they did free sampling. During Iftar, they gave away free Olpers 250ml cartons. Olpers is a brand of Engro Foods, they can supply to rural places very quickly.

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Personal selling every year, The Engro Food’s for Olper’s has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective.

Products.

Place of distribution

Engro Foods, a wholly owned subsidiary had its first full year of operations in 2007. The Company continued expanding with additions to brand portfolio, milk production and distribution capacities.

EFL operates two dairy processing factories located in Sukkur, and Sahiwal. The company’s milk collection network now boasts over 700 village milk collectors and 400 milk collection centers. Covering 2400 villages across Pakistan, the activities of the Company touch the lives of almost 51,000 farmers.

The Engrofoods Company sells its products operations, distributors, fountain wholesalers and retailers. These then distributes them

To retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. Olpers covers almost 98% outlets all over in Pakistan as

Engro Foods Wholesalers/distributors

Retail/corner stores

Departmental stores

Consumers

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Place strategies

Place strategies Explanation of place strategy

Indirect distribution The Engro Foods Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers.

Intensive distribution The Engro Foods uses the intensive distribution strategy. The business's products are sold in almost every outlet including: retail outlets ·small shops · Departmental stores and entertainment venues etc.

V-Monitoring & Controlling.

Engrofoods Olper’s milk Team Specially keen concern their product Quality they Claims that all the ingredient usually occur in natural milk which are listed below present in Olper’s milk because during the UHT Process few of the ingredients may wasted due to ultra high temperature that is good about the quality of Olper’s Milk because Olper’s having good and technology to provide the natural milk to the consumers with all their ingredients and quality.

Engrofoods also concern Development and implementation of milk standards is also essential to define milk price based

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on quality. They also monitoring the market share of Olper’s when they came to know that one segment of our consumers are not eligible to buy the Olper’s milk after increasing in the price Engrofoods launch milk named TARANG which is 20%less in price as Olper’s.

Due to their best quality good price, Olper’s become a good threat for the competitors and also concern about good marketing due to all these good controlling and monitoring Olper’s become the cash cow for Engrofoods.

Achievements

Olper’s achieve a lot with in short span of time. In December2 006: Engro Foods Limited has cross Rs 1 billion in sales for its Olper's Milk, launched in March this year. The Rs 1 billion rupee milestone was achieved at the end of October, in less than 8 months of the launch of the new pack milk brand and by the end of 2007; the sales figure is expected to reach Rs 1.4 billion.

In a statement issued here, the marketing director of Engro Foods Ltd, Ali Akbar said, "We believe we have set an all time record as far as sales of a new milk brand are concerned and in a very short time Olper's has opened in over 50 towns in Pakistan, becoming a national brand."

"This is all the more remarkable since we entered a market with very strong existing players and our success has come primarily because the people of Pakistan clearly felt Olper's to be a higher quality product," he added. Olper's Milk is produced at the company's modern production facility in Sukkur and goes through several stringent quality checks starting from the milk collection points, before it reaches the consumers. He said, the demand for Olper's has come not only from first time users of packaged milk but also from users of other brands

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who have shifted to the Olper's brand owing to its taste and quality proposition and its convenient

availability all over the country. He said, the company is now in the process of setting up another production plant in the central Punjab region. Engro Foods had also launched Olper's Cream in September this year and is now poised to further expand

Engro Foods expansion on a bigger scale.

Engro Foods Limited who had recently set up Dairy industry in Central Sindh (UHT Milk plant) by investing about Rs one billion, further plans to set up a similar set up in Central Punjab and also emerging as Food Giant firstly on National Level and secondly as world class International Food Giant by adding a large number of other food products through investment of $200 million plus, probably envying to emerge as an international food company on similar lines as NESTLE did. The company plans exporting its products to central Asia and Middle East.

Dairy science and Technology in Pakistan.

Development and implementation of milk standards is also essential to define milk price based on quality.Dairy science and technology education universities also need to support industry in dairy breeding, nutrition, industrial management and product quality. Presently no under-graduate program is available in the country to support this sector. Presently, Pakistan has only a few scholars in prime principles of dairy science including animal breeding and genetics, dairy nutrition, dairy management, and dairy technology to support and develop dairy industry. It is essential because the veterinarian could only provide support to the animal

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industry developed on the animal production science principles. Animal or dairy production science is altogether a

different subject than that of veterinary education.In conclusion, development of dairy cooperates, restructuring of extension; research and educational institutions could perk up rural oriented dairy sector to market oriented dairy industry that guaranteed food security social and economic growth in Pakistan.

SUGGESTIONS AND RECOMMENDATIONS

Following are the suggestions and recommendations for Nestlé Milkpak Ltd.

The company should introduce its UHT brand for the price sensitive segment of UHT milk market in order to counter the market of “Dairy Queen”.

They should also start to manufacture powder milk in order to meet the domestic demand and so that it can be helpful in saving the foreign exchange that is expensed in importing the powder milk from foreign countries.

The company should explore the market potential in a way, so that it can utilize its full capacity in order to gain economies of scale in the production.

At the moment the company is using focus marketing approach that only that segment is approached which highly attractive for the company but it should also develop the marketing program that distinguishes the characteristics of existing available substitutes to their highly quality & hygiene oriented product.

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The company should also position its products to the middle-income group like “Everyday” and “NIDO” have been positioned after their new small packaging launch.

The company should also develop an integrated awareness plan in order to aware the people about the quality of the UHT milk as compared to other pasteurized or loose/fresh milk.

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REFERENCES

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1. Marketing Management by Kotler 12th Edition.2. Marketing Management by Kotler 11th Edition.3. Principle of Marketing by Kotler.4. Marketing by Stanton.5. www.olpers.com.pk 6. www.engrofood.com.pk 7. www.engrochemicals.com 8. www.Engro\web search\marketing-sales.aspx.htm

9. www.Engro\web search\about-us.aspx.htm

10. www.google.com 11. www.wikipedia.com 12. Marketing director of Engro Foods Ltd,

Ali Akbar Karachi

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