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Marketing Report Tarang

Sep 30, 2015

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Analysis on 4Ps, 4Cs, Swot , Porter and Target market.

  • COMPANY: ENGRO FOODS LIMITED

    2015

    Composed by: 1. Farhan Daud

    2. Karan Kumar

    3. Syed Talha Kadri

    MARKETING PROJECT TARANG

    INSTRUCTOR: SIR EJAZ AHMED MIAN

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    MARKETING PROJECT TARANG

    Table of Contents 1. ENGRO FOODS LIMITED ............................................................................................. 2

    INTRODUCTION .................................................................................................... 2

    MISSION STATEMENT ............................................................................................. 2

    VISION STATEMENT ............................................................................................... 2

    2. INDUSTRY ANALYSIS .................................................................................................. 3

    3. BRAND ANALYSIS ....................................................................................................... 4

    MARKETING MIX (4PS) ............................................................................................ 4

    I. PRODUCT: ........................................................................................................ 4

    II. PRICE: ............................................................................................................... 5

    III. PROMOTION: .................................................................................................... 6

    IV. PLACEMENT: .................................................................................................. 7

    TARGET MARKET ANALYSIS .................................................................................... 9

    I. DEMOGRAPHIC SEGMENTATION .......................................................................... 9

    II. PSYCHOGRAPHIC SEGMENTATION ....................................................................... 9

    III. BEHAVIORAL SEGMENTATION ............................................................................. 9

    4CS MODEL .......................................................................................................... 10

    I. COST ............................................................................................................... 10

    II. CONVENIENCE.................................................................................................. 10

    III. COMMUNICATION ............................................................................................ 10

    IV. CONSUMER SOLUTION ................................................................................... 10

    4. SITUATION ANALYSIS ................................................................................................ 11

    PORTER 5 FORCE MODEL ...................................................................................... 11

    I. THREAT OF NEW ENTRANTS: LOW ............................................................................ 11

    II. THREAT OF SUBSTITUTE GOODS: HIGH ....................................................................... 11

    III. BARGAINING POWER OF SUPPLIERS: HIGH ................................................................... 12

    IV. BARGAINING POWER OF CUSTOMER: HIGH ............................................................... 12

    V. COMPETITIVE RIVALRY WITHIN THE INDUSTRY: LOW ...................................................... 13

    SWOT ANALYSIS ................................................................................................... 13

    I. STRENGTHS ...................................................................................................... 13

    II. WEAKNESSES .................................................................................................... 14

    III. OPPORTUNITIES ............................................................................................... 14

    IV. THREATS ...................................................................................................... 15

    5. 4PS ANALYSIS & RECOMMENDATION ........................................................................... 15

    I. PRODUCT ........................................................................................................ 15

    II. PRICE ............................................................................................................... 16

    III. PROMOTION .................................................................................................... 16

    IV. PLACE........................................................................................................... 17

    6. CONCLUSION .......................................................................................................... 17

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    1. ENGRO FOODS LIMITED

    INTRODUCTION

    Engro Foods Limited was framed as a completely possessed auxiliary of Engro Corporation in 2005 as consequence of diversification. Utilizing dairy as a going stone to go into the sustenance business, Engro has dispatched multiple items, turning into a real player in the nourishment of business sector in Pakistan with Rs.43 billion incomes in 2014 and its shares and stocks are exchanged vigorously in money markets. At the very moment company offers six major brands Olpers, Tarang, Omung, Omore, Owsum, and Olfrute.

    MISSION STATEMENT

    Build branded food business to improve quality of life by offering tasty,

    affordable and high nutritional products to our consumers while maximizing stakeholders value.

    VISION STATEMENT

    Aim at transforming the company into first national food industry giant, then

    into regional force and finally into a global player.

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    2. INDUSTRY ANALYSIS

    The industry volume of Tea whiteners is 10,000 tons every annum while 29% of

    the aggregate milk powder industry is milk whiteners

    Tetra Pak gauges that drinking milk with tea represents 32% of aggregate milk of

    total milk consumption in Pakistan, making this an extremely important focus

    area for milk processing companies. Tea whiteners are less costly to produce

    compared to packaged milk as it contains vegetable fats instead of animal fat

    because of its affordability.

    Contending brands of tea whiteners accessible in the Pakistani business are:

    Tarang by Engro, Nestle EveryDay, Tea Max by Haleeb, Chaika by Shakargang, Chai

    Mix by Nurpur and Millin by Premier Dairy Industry. Also tough competition by

    dairies who sell fresh milk.

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    3. BRAND ANALYSIS

    It involves judging the product on various fronts such as Marketing Mix (4Ps),

    Segmentation and Customer Point of View (4Cs).

    MARKETING MIX (4Ps)

    Tarang has carefully employed the following marketing mix to maximize its

    returns:

    I. PRODUCT:

    The brand name was chosen as a strategic element to connect effectively with

    the target market which can relate with Urdu. The Urdu word (Tarang) is

    a depiction of happiness, joy, festivity and a cheerful state of mind.

    Tarang falls in the category of tea whiteners that contains:

    6.5% vegetable fat

    4.5% milk-solids non-fat

    1.75% sugar

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    Minor ingredients such as emulsifiers and stabilizers.

    The beverage is produced and Ultra Heat Treated (UHT) at the highly

    sophisticated milk processing plants of Engro at Sukkur and Sahiwal in order to

    preserve the taste and nutritional qualities.

    Available in a diversified SKU portfolio: 125ml, 250ml, 500ml and 1 liter to

    meet the needs of all tiers of its target audience.

    Each pack is aseptically packed in Tetra Brik Slim and has a shelf life of 71 days.

    Packaging is designed so as to complement Tarangs positioning bright colors

    such as yellow, orange and red that depicts joy and festivity. As an FMCG, this

    proves helpful for Tarang to be spotted easily.

    II. PRICE:

    Unit price of smallest pack offering (125ml) that makes 2 cups of tea is

    maintained at Rs. 10.

    Profit margin is kept very low to satisfy the price sensitive target market, which

    shows that the target market of Tarang is lower middle class.

    Discounts and credit terms are offered to important partners such as key

    accounts (Metro, Cosmo etc.) and major distributors. Retailer are not given

    any discount even if they take it in bulk quantity.

    The pricing strategy employed is value based pricing which is about charging

    just the right combination of quality and good service at a fair price.

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    III. PROMOTION:

    Engro Foods is currently utilizing the following mediums to generate positive

    customer response for Tarang: