Sfm Final Pres

SALES FORCE MANAGEMENTPresented By :

Sarah Syed

The flagship brand of Engro Foods is OLPERs Milk - Subha Bakhair Zindagi

Engro Foods History

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 FOOD s Products: OLPER S MILK OLPER S CREAM OLLWELL OWESOME FLAVOURED MILK

The Successful Salespersons First For the Customer Second For The Product

cares

Elevating Customer Delight World Wide

MissionMISSION: Our mission to two fold, help farmer s maximize their farm produce, by providing quality nutrient plants and technical services upon which they can depend. To create wealth by building new businesses based on company & country strengths in petrochemical, information technology, infrastructure , foodand other agriculture sectors.

VISION

"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."

Industry OverviewPakistan is the third largest milk producing country in the world

Packaged milk industry initiated in 1981- Milkpak

Its first real competition came in the form of Haleeb, which introduced distinctively blue tetra packs to the market in 1986.

By 2006, dairy milk category growing at 20%

Company Information

Engro Foods established in 2005

Plant located at Sukhar, 23 Acre land

Raw milk reception capability of 300,000 litres a day

UHT Milk capacity of 200,000 litres

Three products; Olper s Milk, Olwell and Olper s Cream

Contd.Product lassificationonsumer, non-durable onvenience, packaged good

Product PositioningUse of red color - distinctive All purpose milk

Markets Served The milk sector shows a market that has homogeneous preferences that is the consumers have similar preferences. They want milk to be white, carefully processed, and good for health and bones. The markets, even urbanized, still have a strong preference towards the doodhwala who in their minds is the source of purest and most fresh milk. Also, price differential between packaged milk and un-processed milk is also a strong influence on their decision

Market Share and Sales History

Market ShareOLPERS MARKET SHARE

MILK PACK

%38

%40

OLPERS OTHER

%22

Haleeb Dairy QueenRs. 52 Rs. 28 Rs. 12

HaleebRs. 57 Rs. 32 Rs. 16

Nestle Milk PackRs. 57 Rs. 32 Rs. 16

OlpersRs.57 Rs.32 Rs.16

Size (ml) 1000 500 250

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

COMPETITOR S: HALEEB MILK NESTLE MILK PAK GOOD MILK PREMA MILK AL MARAI MILK

Methods of Distribution

I t

siv Distri

ti

Implications of any market researchBefore the inception of the brand Olper s, AC. Neilson carried out a marketing research for Engro Foods to determine the viability of the brand name Olper s and the market readiness through surveys, interviews and focus groups. 1200 names were reviewed and analyzed before Olper s was decided

Target MarketS.No BEHAVIOURAL BENEFITS 1 PSYCHOGRAPHICPERSONALITY TRAITS

DEMOGRAPHICINCOME CLASS

Healthy, nutritious, all purpose Variety

seeking

- Upper

and

uppermiddle

experiencers 2 High nutrition, low fat Goal oriented/career Upper focused and

uppermiddle

Primary Market:Upper middle and upper income groups seeking healthy and nutritious, alk purpose milk

Secondary Market: Diet concious, career oriented, upper middle and upper income class

Marketing ObjectivesNeed SatisfyingTo provide hygienic, good for health and bones and nutritious packaged drinking milk. To provide low-fat milk that is high in nutrition. To provide all-purpose milk, that can be used in many forms.

Long and short term Sales target Objectives

To gain a bigger market share by the end of 2009. (From 22% to 40%; that of milk pak s) Long term: To be the market leader in the packaged milk industry. Rafey Nisar Zuberi, the marketing manager for Engro Foods states, When we launched, we wanted to be the market leader in five years.

Primary Vs. Selective Demand80% people still using unpackaged milk Former entrants communicated the benefits of packaged milk Need has been identified, now it is time to stand out!

How Olper s is doing it? Olper s tries to get tremendous exposure

where the customers are most likely to look for milk; shelf position, billboards, TVC s etc. Olper s USP; all purpose milk and for Olwell low fat-high calcium diet milk is reflected and reminded in all campaigns to stand out.

Direct vs. Indirect Action Olper s advertising objective is to stimulate both direct and indirect action. Through their promotional campaigns like the ones during Ramzan and otherwise, they try to get a direct response from people to motivate them to buy. Indirect action is mostly the case where they are trying to create favorable attitudes towards the brand Olper s.

The Advertising Pyramid

In 3 years, to communicate the benefits of pure and all purpose milk and to 2/3rds of 80% of people still using unpackaged milk. Awareness -In 2 years, communicate the benefits of low-fat-high-calcium milk to 1/3rd of packaged milk users. Awareness -Try to communicate Olper s value proposition, image and try to position itself as a pure and all purpose milk. Comprehension -To communicate Olwell s value proposition, image and position itself as a high class, diet milk. Comprehension -To convince the informed group that Olwell is the pure, all purpose and healthy for bones drinking milk; something better in the same price for packaged milk. Conviction -To convince the informed group about the high calcium and low fat in Olwell, something that will help you live a successful and healthy life. Conviction -Stimulate desire among people through effective campaign. Desire -Motivate the desired group to try the milk eg. through free sampling with bread (Olper s did this when they entered the market).

Advertising Strategy

Product ConceptProduct PositioningAttribute positioning for Olper s All purpose

Product DifferentiationPerceptible differentiation; red packaging

Benefit Positioning for Olwell- reduces weight, healthy bones

Hidden differentiation; artificial sweet flavor, constituents

Induced differentiation; consistent advertisement

Contd.Product Lifecycle StageGrowth phase; sales and customers are increasing

Product ClassificationBy market; consumer good By rate of use/tangibility; non-durable, purchased frequently

Product Packaging

Identification

Focus is shifting towards stimulating selective demand

By purchasing habit; convenience good By physical description; tetra-packaging

Containment, protection and convenience; durable packaging, comes in different sizes

Kim-Lord Purchase Decision Position MatrixHigh Feel, High Think High Feel, Low think Olper s

Low Feel, High think

Low feel, Low think

Target MarketTarget audience Prospective buying influencesmothers and housewives (Olper s) career focused, figure conscious and health conscious males and females (Olwell)

Children; they might find some ad more entertaining Males of the house; the ones paying for grocery Friends, colleagues Personal preferences and values

Media reaching the target audienceTraditional Mass Media Radio, Television, Newspapers and magazines in the case of Olper s. Their TVC s run during prime times on all famous television channels like Hum TV, Geo, PTV, ARY and many others. Also, they advertise in newspapers like The News, Dawn. They also advertise in weekly magazines like Sunday times, Fashion mag and the like Other Media PR actvities Sponsorships Supplemental Media Trade shows Sales promotion such as point of purchase displays.

Copy Elements

Message Dimension

Narrative Slice of Life Emotional

Executional Framework

Appeal

Product image

Pure, fresh, healthy and clean

Art ElementsPurpose of the visualCaptures reader s attention, clarify claims made by copy Shows Olper s milk in use, arouses interest in the headline

Layout StylePoster layout visual captures 2/3rd of the ad

Chief focus of the visualPackage containing the product User benefit

Format

Headline and its type Body Copy and its Style

Bhar lo apni jholi umeed k ujaalon se provocative type of headline which instigates curiosity Olper's Milk ensures amongst readers that you enjoy every Sehr &Iftar with your family throughout this blessed month. Let optimism & the spirit of celebration bring you even closer together as you get ready to share this blessed Eid with your loved ones.

institutional copy which promotes a philosophical merits of what Olper s can do rather than product features

TVC s

The Advertising Budget

The marketing situationPrimary demand for product class

New or old product

Has been in the market for 3 years 22% market share

Increasing

The marketing situation

Competitive situation

Marketing objectives

Milkpak and Haleeb already present

To be the market leader

New entrants; Good Milk, Nirala, Pakol a

To increase mindshare

Method of Allocation Objective/task method Before Olper s entered the market, the existing brands were following a rather subtle advertising. Olper s was launched with one of the biggest advertising campaigns that the nation has ever seen and then in self defense Haleeb and Milkpak re-thought their advertisement budgets. Olper s sets its objectives specifically and considers marketing as a tool to generate sales. It determines its strategy according to the objectives set and then estimates the cost which becomes the basis of advertising budget.

RecommendationsAct local-Olwell s advertising must conform to local values

PR Activities; mother s day special sponsorships Advertising at the right place; Olwell s TVC can run during yoga shows in the morning Increase pull strategies; offer discounts in Ramzan

Milking the Market:

In the recent few months, it seemed that everywhere one looked, there was either a billboard, a TVC or a radio jingle promoting a brand of milk whether it was Haleeb, Nurpur, Pakola, Nirala, or, recently, Olper s. But perhaps this isn t surprising after all. Pakistan, according to recent statistics, is the third largest milk producing country in the world (32 billion liters per year from 50 million animals, with urban consumption at nearly seven billion liters).

However, despite this high ranking, packaged milk, even according to the most optimistic estimates, has a mere four percent penetration. No wonder then that processed milk companies (PLMCs) have been rather aggressive in their advertising and marketing endeavours in an attempt to increase the penetration.

Vision "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."

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

Marketing Research conducted by ENGRO Foods

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.

E.g. OMORE

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:

1. Packaging of Olper s milk and Olwell in red color 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

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. The unique selling proposition for Olper s is: Subah Bakhair Zindagi, but recently the company changed the USP to: Jo dil khol kay jeetay hain unheen kay liyay hai Olper s. Both the tag lines have a very positive impact on Olper s image because of the emotions involved in both the lines. The marketers have used different positioning for Olper s products: a. They have used the attribute positioning for Olper s milk. The main theme of the product is that it is meant for all purposes without any user imagery. Olper s ads also show attributes of milk such as good for health. b. They used the benefit positioning for Olwell. The product is positioned as delivering the benefit of helping to reduce weight and for healthy bones. c. Olper s cream is positioned as good for a specific use or application. In this case the cream can be used to make cake icings and desserts look great.

USP (unique selling proposition) The right Marketing and Advertising. Slogan SUBHA BAKHAIR ZINDAGI Good variation milk, tea, desserts, etc. Culture & Ethics portrayal Packaging Ramadan Extravaganza Thumb s up to R & D.

Product Quality Olper s Milk

Launched on March 20, 2006, Olper s milk is EFL s standardized and homogenized pure UHT (Ultra heat 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.

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 COMPETITOR S WEAKNESS!

Promotion & Advertising 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 and plenty of BTL (below the line) activities including direct consumer and shop branding activities. Due to this 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 Olper s 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.

Body Copy: With Olper s Milk Limited Edition Pack we join you in the celebrations of Ramadan. Enjoy the full cream goodness of Premium Quality Olper's Milk every Sehr and Iftaar. So treat yourself with Olper's Milk all throughout Ramadan and get ready to reveal in the colorful festivities of Eid. Tag Line (Corporate Slogan): Subah Bakhair Zindagi Agency: JWT Asiatic

Media mix for Olper s milk includes TV, print, outdoor, radio & BTL activities. Olper s considers radio still an effective medium because A & B house wives still listen to the radio on a daily basis.

Post Mortem Caption: Joh dil khol kay jitay hain Unheen kay liyay hay Olper s Body Copy: Dil khol kay jiyain Olper s kay sath kunkah Olper s hay mukamal doodh har tarha kay istimal kay liyay. Tag Line (Corporate Slogan): Subah Bakhair Zindagi Agency:

JWT Asiatic

Graphics of the ad are excellent except the body copy which is quiet overloaded with information. TVC however, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only 3 seconds of branding! This type of advertising has never been practiced in Pakistan. Using celebrities like Shan is not a good option as he has already developed his association with Mobilink. But overall Olper s has done a great job in designing and executing its ad campaign.

Building customer based brand equity

The sales figure for the first eight months of Olper s launch showed a number in billions. This is evidence that people have accepted the brand and liked it. Thus marketers have been successful in creating customer-based brand equity for Olper s. This could be due to strong associations with ENGRO in the minds of customers.

Measuring customer-based brand equity

They used the indirect approach with different qualitative and projective techniques (the questionnaire contained some questions related to sentence completion and brand personality description). They used this to understand customers feelings for the brand.

Managing customer-based brand equity

The organization is managing the customer based brand equity because they realize the significance of marketing activities and their effect on creating more value for the brand, and so by influencing brand knowledge, sales can be improved. Olper s is concentrating on the emotional aspect in their ads in order to focus on the core need of customers that can be satisfied. Olper s has also funded Women s exhibition in Karachi a few months ago and currently is sponsoring cricket World Cup 2007, and further adding more value to the brand and managing customerbased brand equity.

Our Brands.

SUPER SWOT Strengths 1. Worldwide fame of Engro. 2. Efficient milk collection system. 3. Keeping high quality standards. 4. Integrated distribution and warehousing facilities. 5. Generic brand name of Olper s 6. Large market share of Engro innovative and chemicals. . Having Good reputation in the market by strong brand name i.e. Engro 8. Strong R&D Weaknesses 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. 4. Not yet ISO certified Opportunities

Demographic segmentationOlper s 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 Olper s have segmented the market more

towards achievers who are goal-oriented and focused on their careers, and experiencers those who are seeking variety in the milk sector.

Behaviorial Segmentation

Olper s products have been segmented on

the basis of benefits that consumers seek in the milk People look for a brand that can be used for

all purposes from drinking to tea whiteners as well to feed the animals.

ProductsOlper s Milk Olper s Cream Olwell Lo-Fat

Launched on March 20, 2006,

launched on September, 2006

Launched on December 15, 2006

Distribution Channels

Having kicked off simultaneously in 20 cities

across Pakistan currently Olper s is available in 80 cities

across Pakistan

Distribution Channels

Having kicked off simultaneously in 20 cities

across Pakistan currently Olper s is available in 80 cities

across Pakistan

Distribution ChannelsDistribution Regions

Karachi Lahore Islamabad Peshawar Multan

Distribution ChannelsSelection criteria of Olpers for Distributors Selection

Financial Strength of Distributor Efficient Infrastructure Logistic Fleet Efficient and Trained Sales Force Past Experience of Distributor Market Knowledge The use of new Technology (IT)

Distribution ChannelsNegotiations on Price with Distributors

Olpers doesn t negotiate on price with distributors there is a fix Markup/Commission which is 4% for all distributors

Distribution ChannelsSales Targets for Distributors

Monthly sales targets are established after discussing the market requirement with the distributors. For the month of November the sales target for the Multan region was 56000 liters

Distribution ChannelsIncentives for the Distributors and Sales Force

Training Bonuses Share in the Sales Force Salaries Share in Maintenance cost of Transportation Fleet

Distribution ChannelsUsing the Distributor s Goodwill/Credibility

Distributor s credibility and goodwill is not used as a tool to pressurize the retailer but they are taken into confidence by first introduction to the product features and brand and then distributor repute plays a value addition role Customer feedback is acquired for further planning which is the responsibility of the distributor to provide to Olpers team

Future plans Rs 2.0 billion investments in capacity expansion

and marketing, including setting up of a plant in Central Punjab. ENGRO Foods is making concrete efforts to expand in and beyond Pakistan; through strategic international alliances ENGRO Foods coming up with new products / brands to expand its portfolio in the dairy industry Signing a micro-financing model for dairy farming with Pakistan Poverty Alleviation Fund (PPAF).

Distribution ChannelsDistribution Channels which makes Olpers, a success story

1st 6 months of its launch, Olpers gained the

13% market share of Nestle Brand has become the second largest in overall ranking in term of sales in the country leaving Haleeb Blochistan a potentional market where other competitors have not worked over due to security and safety concern

Situation Analysis Olper s ( Engro Foods.) is doing UMBRELLA

STRATEGY , so they have managers brand wise.

Their major duties are planning & image

building.

The training of personnel is IN-HOUSE

which is done by the HR and Marketing Department.

The FUNCTIONAL EFFICIENCY is monitored

through sales reports and different survey sessions that are condoucted by the company.

The INTERFACE EFFICIENCY was too good

which proves that the coordination between sales & marketing turn-out to be brilliantly well.

STEEPLE ANALYSIS No organizationexists in a vaccum, the

environment with which the firm has to operate will affect the way that strategy is planned & carried out. Changes in the environment are also the most likely to cause failure of strategy plans (i.e., omore, milk preservation).

The more carefully calculate strategy would

be able to drive market in the favor of the organization. i.e., sponsoring gigs, press conferences & morning shows. Etc These can maneuver the external environment in the best was possible.

ORGANIZATIONAL CHARTS

Line-and-Staff Sales OrganizationChief Marketing Executive

Advertising Manager

Marketing Research Manager

General Sales Manager

Sales Promotion Manager

Sales Analysis Manager

SalespeopleLine authority Staff advisory authority

Chairman

Board of Directors GM Production Manager Prod GM Manageme Manager M

GM Tech

GM SC

Head IS

GM Finance Manager Finance

GM Marketing Manager marketing

GM HR

Manager SC

Manager Tech Manager IS

Manager HR

PORTERS FIVE FORCES MODEL

Threats of New Entrants:

1. The food cpmpanies are fearful of being squeezed out by the big players. 2. Another threat for the company can be food service companies entering the market.

Bargaining Power of Suplliers:Suppliers might not pose a big threat: 1. Number of suppliers Raw materials is a standard commodity. 2. Importance of Volume to supplier less leverage to bargain

Bargaining Power of Buyers: Doesn t pose much of a threat as it is an

FMCG (fast moving goods).

Availabilty of Substitutes: One pretty straight forward reason, the

plenty of substitues in the food industry. Company focus is on niche areas, have to maintain the competitve advantage.

Competitive Rivalry: Being highly competitve, dominating each

other. An area in which the food company with low cost structure, greater efficiency, best customer service will beat out competitors.

OLPERS MILK & TARANG

OWESOME & OLPERS CREAM

OMORE

OLLWELL

Recommendations The product is in maturity of its life cycle

where the company is well-known so market shared should be maintained. Capitalize from the major markets- according to the usage of the product. Frequent advertisements Awareness of Campaigns Cross-Merchandise Promotion e.g. give away free cereals besides

Relating Market ApproachCoordinate Communications Send Newsletters Encourage Celebrity Endorsements Breafast and dinner forums (PR acitivities)

Personal Selling: Sponsor Cooking Shows Funfairs Exhibitions Maintain Stalls at the happening places in

town.

Improve Physical Evidance: Shelfs & Racks

Redesign Proper Supply Chain Incentives for Retailers Return Policies Brand Outlets offer memberships

THANK YOU !