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This report is about the marketing of Olper’s from the time when ENGRO foods came up with the idea of adding a new product line to their already well established and long set of product lines to the point that they are still heavily promoting their product. We start by giving a brief history
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marketing strategies of Olper's.....

Nov 19, 2014

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this presentation is about the initial strategies of olper's milk in terms of marketing mix.. and a little SWOT analysis also included in it.......thanx
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Page 1: marketing strategies of Olper's.....

This report is about the marketing of Olper’s from the time when ENGRO foods came up with the idea of adding a new product line to their already well established and long set of product lines to the point that they are still heavily promoting their product. We start by giving a brief history about Olper’s and how it came into existence.

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INDUSTRY INTRODUCTION

Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification process at the Engro Group. 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.

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. It also positions the company to leverage its corporate social responsibility initiatives and work closely with rural communities to promote integrated farming and livestock development. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas.

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.

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MISSION STATEMENT

Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, to eventually become global."

PRODUCT INTRODUCTION

Marketing research is an important step when a new product is to be launched into the market. There are many risks associated with that new product and especially when a company decides to diversify into a completely new market that it was not previously catering to. Thus in order to reduce the magnitude of the risks and to be successful, large organizations with a research and development department conducts the marketing research. Even those organizations that do not have a R&D department can conduct marketing research through other companies that are providing the facility of marketing research.

Olper’s is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT and infrastructure business. The brand is well known so customers will

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automatically have a brand association with Olper’s and see it as a premium quality product. ENGRO is world renowned so it can easily attract foreign investors in backing it against other competitors such as Nestle.

Olper’s milk launched on March 20,2006. Olper’s milk is EFL’s standardized and homogenized pure UHT(Ultra heated 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.

PARTS OF PRODUCTS

CORE PART:-

Milk is one of nature’s most completed foods. Almost a meal itself. Milk is fundamental element of good diet particularly for bones development and protection.

Olper’s milk provides pure milk having essential nutrients in good combination having 3.5% fats and 8.9% solid non-fats.

ACTUAL PART:-

1. Brand name olper’s milk2. 6-layered Tetra Pak Brick Aseptic red packaging3. Ultra heated treated(UHT) milk inside

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4. Available in different sizes packaging 5. Attractive red and white color of packaging

AUGMENTED PART:-

There is no augmented part of this product.

CLASSIFICATION OF PRODUCT

CONSUMER PRODUCT:-

Olper’s milk mostly used as consumer product because it mostly bought by final users for personal use. It is falls in convenience goods because it is low price, most frequently available, and frequently distributed product.

BRANDING

Positioning the brand :- Positioning involves designing the product and image that will occupy a distinctive place in the minds of the target market. As can be seen, nestle milkpak and Haleeb have the largest profit margins and market share in the milk industry. Thus the marketers at Olper’s have decided to create its own unique image and then strengthen the position in the customers’ minds. They have done this by taking a number of following steps:

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1. Packaging of Olper’s milk and Olper’s cream packed in purple color are quite different and distinctive from the typical green and blue packing used by other competitors.

2. The brand has been positioned as an all purpose milk that is meant for everyone, especially for those who live life to the fullest, hence its tag line, “jo dil khol kay jeetay hain unheen kay liyay hai Olper’s”

As you know our product’s brand name is olpers milk. Olpers is an attractive, short and unique name. It is easy to remember and easy to pronounce. Now olpers is a recognized brand in market. It is known by every one. So due to it’s unique qualities it also got brand recognized.

PACKAGING

EFL is dependent upon Tatra Pak for the packaging of it’s entire dairy products. Tetra Pak is the only option available to Olpers for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tatra Pak can change them higher and it could increase the production cost.

Packaging of Olper’s milk is in red color which is quite different from the typical green and blue packing used by other competitors.

Olper’s always tries to create customer intimacy that is it focuses on satisfying the customers’ unmet needs. Processed milk is seen as less lacking all the nutritions that are part of milk due to passing through so many processes. But Olper’s positions itself as milk that has not lost its nutrients.

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PRODUCT LIFE CYCLE

Olper’s milk is a fast growing food company. By its unique techniques in a short time it becomes very famous in market. But it is in growth stage yet. Because due to its distribution it is not available.

PRICE

EFI is pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is considering the price of major competitors like Nestle, Haleeb etc.

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Size In ML Olper’s Nestle Milk

Haleeb Milk

Haleeb Dairy Queen

1000 ml 55 58 55 52

500 ml 30 32 30 27

250 ml 15 16 15 14

PLACE

This department ensures timely and effective distribution of the product to the shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.

PROMOTION

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

Due to aggressive marketing campaign, the competition seems to be getting tougher. This can be gauged from the fact that nestle re-launched its product packaging and marketing campaign just before Olpers launch. One can also a far greater number of milk advertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle.

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SEGMENTATION

Demographic characteristics:

Age: It is for all age persons.

Gender: There is no discrimination.

Family size: It serves family of people up to three or five people.

Family cycle: olper’s milk is bounded to any particular life cycle.

Income: above 8000

Olper’s milk is for all occupation education and religion.

Geographic characteristics:

Location:

Region: South East

Country: Pakistan

Province: All over Pakistan

Psychographic:

Social class: this brand is for all users of middle and upper class.

Occasions: for all occasions.

COMPETITOR’S ANALYSIS

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Olper’s milk is competing with haleeb milk, nestle milk pak and good milk etc. these are its industrial competitors. It does not have market competitors. According to competitor analysis olper’s milk falls in challenger.

Factor Olper’s

milk

Nestle milk

pak

Haleeb Good milk

Products Milk Milk Milk Milk

Quality High

Quality

High Quality High

Quality average

Quality

Expertise UHT Drinks Drinks Milk Pack,

Juices Pack

Coverage Pakistan Pakistan Pakistan Pakistan,

Appearance Very

Attractive

Attractive Less

Attractive

Average

Advertising T.V Ads,

radio,

outdoor,

newspaper,

T.V Ads,

radio,

Newspapers,

Billboards

T.V ads,

radio,

newspaper,

billboards

T.V ads,

radio, but

less

SWOT ANALYSIS

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STREANGTHS

The brand name “Engro” provides a strong back to the milk in the market. In addition to that, cordial personal relations with farmers and Positive response from customers along with Strong consumer and product research become the challenging streangth for the olpers milk.

Owning red colour sometimes become the weakness of the company. As green and blue colour has already been adapted by the competitors and no colour association has been attatched to the Olpers.

Low quality milk and packaging, Milk collecton and distribution cost plus Narrow brand port folio also become the weakness of the company.

OPPORTUNITIES

Olpers finds its opportunities in increased funding by government. Awareness among the people not only for the milk but also for the consumption of PML that is processed liquid milk. Olper’s is also the third largest producer of milk and thus it also plays role in improving economy of the country.

THREATS

Competition with the companies as haleeb and nestle along with the perception of price competition are the major threats to the company.

CONCLUSION

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Olper’s milk is very fast growing product. It established itself in market in a very short time. By this speed it, just in 2 or 3 yaers it will take ove of all its competitors.

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