Project Assignment

Muhammad Faisal – BEM/890Muhammad Tauqeer – BEM/896Umair Ahmed – BEM/15003

Principle Of Marketing

Olper’s Milk

FacultyFacultyNameName

IndustrIndustryy

TOPICTOPIC

Food & Beverages

Mr. Taimur Ahmed Khan

Prepared By.

Introduction• Engro Foods (Pvt) Limited (EFL) was established in 2005 as part of a

diversification process at the Engro Group. The plant located at Sukkur (Sindh) on 23 acre land, has the raw milk reception capability of 300,000 liters per day and UHT (ultra high temperature) milk capacity of 200,000 liters per day. The project cost was of $ 16 million and it provides direct employment to 850 people.

•Olper’s Milk, company’s first brand was launched in March 2006 in 20 cities of the country simultaneously with Olper’s cream, Olwell and Trang brands. Since they successfully launched one other brand “Owsum” flavored milk in three flavors.

• Engro Food's goal is to be one of the biggest players in the food business and its aim is to dominate the food business.

• Engro Foods has entered the Food business through milk processing and its help to implement sustainable business models that increase farmer’s profitability and develop a positive social and business climate.

Milk Cons. & Dairy Position in Pakistan• Pakistan is largest milk producer in the world with

an annual production of 35 billion liters of milk for human consumption.

• The gross production is much higher as around 20 per cent of the production is consumed .

• It also boasts of having approximately 66 million of dairy animals with some pride breeds of buffalo and cow comparable to the world's best species.

• There are more than 8 million dairy farming households in the country, which are engaged in the milk business in an informal economy substandard feeding malnutrition of animals (poor nutrition).

MILK PRODUCTION AND CONSUMPTION

  2005-06 2006-07 Quantity in 000 tons 2007-08SOURCES GROSS PRODUCTION CONSUMP-TION G.Pro PRODUCTION CONSUMP-TION GROSS PRODUCTION CONSUMP-TION

Total 39,596 31,970 40,872 32,996 42,199 34,064

Cow 13,407 10,726 13,913 11,130 14,437 11,550

Buffalo 24,723 19,779 25,465 20,372 26,239 20,991

Sheep 34 34 35 35 35 35

Goat 664 664 682 682 700 700

Camel 767 767 77 77 787 787

Vision & Mission,• 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.

Segmenting & Targeting

• Olper’s segments the market keeping some basic things in mind like milk to be white, carefully processed,and good for health and bones.

Demographic

• Olper’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.

Segmenting & Targeting

•On the basis of psychographic factors such as personality traits, lifestyles and values and who are goal-oriented and focused on their careers, Olper’s show the beliefs of healthy life with processed milk.

Psychographic

Behavioral

•Olper’s products have been segmented on the basis of benefits that consumers seek in the milk like drinking to tea & they can whiteners as well to feed for their animals.

• Positioning involves designing the product and image that will occupy a distinctive place in the minds of the customers & target market as well.

• Packaging & product features e.g. low fat , whiteners , etc. of all Olper’s milk brands.

• positioned for all purpose milk that is meant for everyone those who live life to the fullest, hence & healthy.

Positioning

TAG LINE

NewLast but not LeastSubah Bakhair Zindagi

Jo dil khol kay jeetay hain unheen kay liyay hai Olper’s

SWOT Analysis

Strength

Opportunity

Weakness

Threats

Swot Swot AnalysiAnalysi

ss

SWOT Analysis

• Brand of ENGRO Foods so 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.

• PR with farmers : Strong & long term relationship with farmers who are willing to supply milk to the company.

• Positive response from customers : In first year, EFL crossed 1.4 billion sales which shows customers’ satisfaction upon EFL’s products.

• Strong consumer & product research : Hired various global research partners like AC Nielsen, Mindshare etc and Mars marketing for strong research about launched products.

• 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).

Strength

SWOT Analysis

• 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.

• 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.

• Narrow brand portfolio : EFL’s brand portfolio still consists of just 3 products 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.

Weaknesses

SWOT Analysis

• Increased funding by Government : Government has decided to increase farmers’ funding.

• Increased consumption of PLM : Each competitor in the milk industry wants to increase penetration of processed liquid milk.

• Awareness : Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.

• 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.

Opportunities

SWOT Analysis

• Perceptions and Price Differentials : Consumers’ perceptions and price differentials can cause a threat for the company. 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.

• Competition : For Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

Threats

TargetTargetCustomersCustomers

Intended Intended PositioningPositioning

PLACEPLACEPROMOTIONPROMOTION

PRODUCTPRODUCT PRICEPRICE

Marketing Mix (4P’s)

Marketing Mix (4P’s)

OLPER’s MILK

• 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 and lunched on March 20, 2006.

• It is available in easy-to-open, 6-layered Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.

PRODUCT

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

Marketing Mix (4P’s)

Olper’s Cream • The premium cream processed hygienically from pure fresh milk,

Olper’s Cream is luxuriously rich in its thickness & nutritional value.

• It was launched on September, 2006 and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months shelf life.

PRODUCT

Shipping units

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

Marketing Mix (4P’s)

Olwell Hi-Cal Lo-Fat (HCFL) Milk,• Launched on December 15, 2006, Olwell is a low-fat, high-

calcium milk with the richness of pure milk. • It is an ideal choice for weight-watchers and heart patients.• Packed in 6-layered Tetra Pak Brick Aseptic red packaging

with easy-to-open plastic cap, it comes with a 3 months shelf life.

PRODUCT

Shipping units

• 1 Litre (1000 ml ) : 12 packs per carton • ½ Litre (500 ml) : 12 packs per shrink-

wrapped tray

Marketing Mix (4P’s)

Tarang Whitener Milk,• Launched on September, 2006, Trang is a whitener milk epically

processed for Tea purpose. • Packed in 6-layered Tetra Pak Brick Aseptic Multicolored packaging

with easy-to-open plastic cap, it comes with a 3 months shelf life.

PRODUCT

Shipping units

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

Marketing Mix (4P’s)

• Engro Foods used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan.

• The launch has been ambitious and currently Olper’s is available in 80 cities across Pakistan.

• It reflects the company’s intention to become a big player in the industry, both on a national and international level.

• 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.

Placement & Distribution

Marketing Mix (4P’s)

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

• Media mix for Olper’s milk includes TV, print, outdoor, radio & BTL activities. Olper’s Due to an appealing color scheme, which stands out in the clutter and thanks to the EFL’s strong relationship building and special discounts to retail outlets.

Promotion & Advertising.

• Pls contact of u need to complete presentation that due to size of the file it split out.

• tauqeerrajput@hotmail.com or tauqeerrajput@gmail.com