Marketing plan of Olper's milk

MARKETING PLAN -

OLPER'S MILK

By Tazeen Azeem

COMPANY- ENGRO FOODS

HISTORY:

established in 2005 as part of a diversification process at the Engro Group

plant located at Sukkur on 23 acre land

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

SWOT ANALYSIS - STRENGTHS1 . Engro’s Back

Olper’s is a brand of ENGRO foods. ENGRO is a well established

brand name in Fertilizer, IT and infrastructure business so

customers will automatically have a brand association with

Olper’s and can easily attract foreign investors in backing

it against other competitors such as Nestle.

2. Relationship with distributors

ENGRO foods can easily afford research and development

cost. It can also distribute the brand through better channels

because of its long term relationship with distributors in the

agriculture sector.‡

3 . PR with farmers :

Strong & long term relationship with farmers who are willing to

supply milk to the company.‡

SWOT ANALYSIS - STRENGTHS

4 . Positive response from customers

In first year, EFL crossed 1.4 billion sales which shows customers’ satisfaction upon EFL’s products.‡

5 . Strong consumer & product research

Hired various global research partners like AC Nielsen, Mindshare etc and Mars marketing for strong research about launched products.‡

6 . Third-Generation Plant

Third-generation UHT milk plant in the country ,Plant 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 and 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 & one processing plant in Sukkhur (Sindh) so its increases in collection & distribution costs in the terms of travelling etc.‡

3 .Narrow brand portfolio :

EFL’s brand portfolio still consists of just 3products i.e. Olper’s Milk, Olwell Milk and Olper’s Cream Whilst their competitors e.g. Nestle and Haleeb Foods have many brands in dairy product line.

OPPORTUNITIES

1 . Increased farmers' funding by Government

2 . Increased consumption of PLM (processed liquid

milk)

3 . Growing dissatisfaction with loose milk and

increasing awareness about health and hygiene issues

led to increased processed milk consumption.

4 . Pakistan is 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 . Consumers’ perceptions and price differentials It is important that Olper’s 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 Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

MARKETING MIX

PRODUCT

Olper’s Milk

Launched on March 20,2006.

standardized and homogenized pure UHT (Ultraheat treated) milk with 3.5 % fat and 8.9 % solid non-fats.

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

½ Litre (500 ml) : 12 packs per shrink-wrapped tray

¼ Litre (250 ml) : 27 packs per shrink-wrapped tray

PROMOTION

TV Cs

print ads

radio commercials

billboards

BTL activities including direct consumer

and shop branding activities

special discounts to retail outlets

Olper’s has gained a proper shelf

placement in the presence of competitors

like Nestle and Haleeb

PLACEMENT

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

Olper’s milk is available in 80 cities across Pakistan

COMMUNICATION STRATEGIES

ATL (Above The Line Activities—television, radio, etc.) and tailor-made Iftaar activations, are aimed at building the necessary association

BTL (Below The Line—brochures, flyers, etc.) have also contributed to the brand’s success

it also involves reaching out to the different locations in various cities and having the housewives participate in learning and showcasing milk-based recipes.

SEGMENTATION AND TARGETING

Demographic segmentation not bounded to any particular age, gender or lifecycle stage

meant for all the users in higher upper or middle class families

specific social class who are health conscious and concerned about their weight

‡Psychographic segmentation

more towards goal-oriented and focused on careers and experiencers

conservatives with traditional beliefs of healthy life with processed milk.

Behavioral segmentation

‡ on the basis of benefits that consumers seek in the milk like drinking , whiteners to tea as well as to feed for their animals.

THANK YOU