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INTRODUCTION
Engro Foods:
Engro is derived from the company logo of" Energy for
Growth. Engro Chemical Pakistan Limited (ECPL) is a
Pakistani manufacturing and marketing company with its
production based in Daharki (Sindh), Karachi and a new plant at Sahiwal. It is included in stock
exchanges of Karachi, Lahore and Islamabad.
During the past decade it has diversified its business and now owns subsidiary companies like
Engro Foods Limited and Engro Energy Limited. It is considered the leading business group of
Pakistan.
Engro Foods, a subsidiary of Engro Chemicals Pakistan started its business operations in March
2006. Engro Foods (EFOODS) is one of the top FMCG companies in Pakistan. The company
was created under the umbrella of Engro Corporation in 2005. It is a publicly traded company
and listed at KSE. The company is engaged in the manufacturing, processing and marketing of
dairy products, ice cream, frozen desserts and fruit juices.
It has established several brands that have already become household names in Pakistan such as
Olper's, Tarang, Dairy Omung, Omung Lassi, Olper's Lite and Omore, amongst others. The
company opened two processing plants at sukkur and sahiwal and has established itself as a
major player in the food business. 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.
VISION
Engros vision is to become a fast expanding mega foods
company. To achieve there vision, the company will initially
focus on dairy by investing a substantial amount in plant, milk
collection capability and marketing. They are making concrete
efforts to expand in and beyond Pakistan; through strategic
international alliances, to eventually become global."
CORE VALUES
Engro support its leadership culture through unique systems
and policies which ensure open communication, foster an
environment of employee and partner privacy, and guarantee
the well being and safety of employees.Engros core values
form the basis of everything they do at Engro; from formal decision making to how they conduct
there business to spot awards and recognition. At Engro they never forget what they stand for.
our people
consumer centric
Engro food is operate mainly in liquid milk business with three brands - Olper's, Omung and
Tarang. Olper's is plain all-purpose milk, Omung is affordable nutrition dairy drink and Tarang is
liquid tea-whitener. We are market leaders in Liquid milk category and hold 57 percent of its
market share with these three brands. In all these three categories, our brands Olper's, Omang
and Tarang are market leaders.
Engro have dairy farm near Sukkur with 5,000 Australian cows which makes up about four
percent of milk supply and growing organically. In Punjab & Sind provinces, Engro have very
extensive agriculture livestock programs. Engro also developing and helping small (commercial)
dairy farms and hooking them to milk collection system. Engro also working with international
organizations and local institutions to facilitate financial arrangements, skill development and
also providing services like effective feeding, breeding, artificial insemination practices and
improvement around general hygiene to farmers.
EARLY ACHEIVEMENT:
Olpers achieve a lot with in short span of time. In December 2006: Engro Foods Limited has
cross Rs 1 billion in sales for its Olper's Milk, which was launched in March this year. The Rs 1
billion rupee miles tone was achieved at the end of October, in less than 8 months of the launch
of the new pack milk brand and by the end of 2007; the sales figure is expected to reach Rs 1.4
billion. In a statement issued here, the marketing director of Engro Foods Ltd, Ali Akbar said,
"We believe we have set an all time record as far as sales of a new milk brand are concerned and
in a very short time Olper's has opened in over 50 towns in Pakistan, becoming a national
brand." "This is all the more remarkable since we entered a market with very strong existing
players and our success has come primarily because the people of Pakistan clearly felt Olper's to
be a higher quality product."
i. Olpers Milk
The Milk of Choice for All Occasions
Olper's has steadily emerged as the leading dairy product in the market since its launch in 2006.
Olper's Lite contains all the inherent nutrients of milk that can boost energy, without
contributing any of the extra calories that cause weight gain. Rich in iron and calcium content,
and fortified with vitamins.
Olpers Cream is a rich, creamy delight that has initiated a new trend not just amongst
baking enthusiasts and dessert makers, but also within conventional households.
Olpers Tarrka has been adding luxurious extravagance to many dishes. Olpers Tarrka is a
premium desi ghee known for its distinct taste and utmost richness
v. Dairy Omung
Rise up to a better life
Dairy Omung is light on the stomach, heek free & 100% dairy. It is a value-for-money
brand that can be used for multiple purposes- tea creaming, drinking & desert making.
vi. Tarang
Tarang in your tea-cup makes for sheer bliss
Launched in 2007, Tarang aimed to deliver a tea whitening product that stood out for
its excellence in quality and affordability offering a blissful brand experience.
Olpers Lassi entered into this segment in 2014 with a 250 ml portion pack available in
four flavors Sweet, Salty, Mango& Strawberry.
ix. Omor
Ice-cream and frozen desserts
3. PACKAGING:
i. Ecolean Packaging:
The new packaging and the change in tactics across the board will help
Engro in achieving its goals of becoming the number one milk brand in all
households. Through the new packing, they also want to show that this is
their effort of further preserve the nutritional value of Olpers so that it
provides maximum utility for consumers. Olper's Milk is also the market
leader in packaging innovation where new formats are introduced to make
consumer lives hassle-free in today's time-sensitive world. First ever in
Pakistan to introduce the heli-cap for easy pouring and storing, along with
the microwave friendly Mini jug pack with an air handle and scissor free
tear option, this brand continues to offer its consumers consistent value
adding benefits to ensure an enriched brand experience. Olpers has quickly been established as
the preferred milk brand for the modern consumer.
Ecolean offers innovative packaging that stands out both in the store and the home environment,
with its combination of unique shape and user experience. All-purpose and nutritious, Olper's
Milk is available in 3 SKUs 250ml Mini jug in Ecolean Packaging, 1000ml Edge with cap and
1500ml Family Brick in Tetra packaging.
Tetra pack is basically six layers packing used to make the package stable, yet light weight.
Thin layers of polyethylene - a common plastic - are added to seal in the liquid and protect it
i) Result in the lowest possible weight and volume of packages whilst still maintaining
pack integrity.
ii) Take into account new packaging materials and processes that reduce the impact on
the environment of unnecessary transportation.
iii) Avoid the use of substances that can adversely impact the environment during
packaging production and disposal.
iv) Decrease packaging waste at all stages in the supply chain, including package
manufacturing, utilization and disposal.
v) Increase the use of recycled materials wherever possible, and increase the recyclables
and compatibility of packages with existing waste management scheme.
vi) Packaging materials are stored in a dry place away from manufacturing areas and it is
used in a clean and sanitary manner which is non toxic.
vii) Packaging is carried out in a way that avoids contamination of processed products.
And also protect the product against contamination until the product reaches the
consumer.
Process milk industry is only 2 billion liters while approximately 19 billion liters of milk is
being used as unprocessed. Out of these 13 billion liters worth of $10 billion is being used at
v. BRAND POSITIONING:
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 Milk Pak also have the
largest profit margins and market share in the milk industry. Thus the marketers at olpers have
decided to create its own unique image and then strengthen the position in the mind of customers
by positioning the brand for all purpose milk that is meant for everyone, especially those who
live life to the fullest. Olpers 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 nutrition that
are part of milk due to passing through so many processes but olpers positions itself as milk that
has not lost its nutrients. Olpers ads also show attributes of milk such as good for health. Olpers
cream is positioned as good for a specific use or application.
vi. QUALITY:
Engro believe that quality and a relentless commitment to continuous improvement are essential
to engros ongoing success. To this end, engro define quality as understanding the customer's
expectations, agreeing on performance and value, and providing products and services that meet
expectations 100 percent of the time. Engros motto is, "Quality in all we do.
Packaged milk contains preservatives which make it possible to store the milk without
refrigeration is not true as the UHT packaged milk is completely preservative free. The special
six-layered packaging of cartons is the reason why packaged milk can be stored without
refrigeration for several months. Consumers those are more health conscious prefferd packaged
milk.
Packaged milk has been regarded as one of science's most useful techniques as it assures fresh,
high-quality milk to the consumer without the hassle of refrigeration. It has also become easier to
transport thus people living in remote areas can also benefit from it now.
The UHT processed milk is cooled rapidly to at least seven degrees Celsius and packaged into
pre-sterilized containers and aseptically sealed. Since bacteria cannot enter the UHT milk, it can
be stored at room temperature for at least three months. Packaged milk has clearly surpassed
open milk in its advantages and should be encouraged more so that people realize its benefits and
switch to a healthier lifestyle.
The D and Z valves are higher for quality factors than microorganisms. The reduction in process
time due to higher temperature (UHTST) and the minimal come-up and cool-down time leads to
a higher quality product.
Packaging size:
Processing conditions are independent of container size, thus allowing for the filling of large
containers for food-service or sale to food manufacturers (aseptic fruit purees in stainless steel
totes).
Cheaper packaging:
Both cost of package and storage and transportation costs; laminated packaging allows for use of
extensive graphics.
viii. COLOR:
Everyone recognizes how a key color can be to a brand identification.
ix. WAREHOUSING:
The company has three warehouses out of which two are located within the production
plant i.e. in Sukkur and Sahiwaal and the other being the central warehouse located in
Rawalpindi.
Sukkur warehouse having a capacity of 1.6 million liters with a daily average dispatch of
350,000 liters and a pallet capacity of 2000.
Sahiwaal warehouse having a capacity of 4 million liters with a daily average dispatch of
400000 liters and having a pallet capacity of 5000.
They are having a cross dock warehousing system. At Mari pur and it is being operated
by transporter himself.
Using pallets to stock the cartons. Each pallet has a capacity of 800 liters. Fork lifters are
used to stock the pallets to the desired dock
The temperature of the warehouse should be maintained at 25-28 degrees in order to keep
milk in its fresh condition.
Because of its perishable nature they are using FIFO inventory system.
There is a climate control system in the warehouses as the temperature of Sukkur and
Sahiwaal shoots up to 45 degrees in summers.
PRICE:-
EFL is pursuing the competitive pricing strategy for its products.
In competitive pricing the price of the product is determined
considering the price of major competitors like Nestle, Nurpur etc.
PRICING STRATEGY:
The engro foods Olpers milk are sold in retail stores, convenient stores, departmental outlets etc.
The pricing strategies are set by those company. The company sells to Convenient stores,
departmental outlets usually sell olpers at a fixed price according to pack sizes. However, retail
outlets use pricing methods and pricing strategies when selling Olpers milk.
2) DISCOUNT PRICES:
olpers milk are often marked down during sale period and special occasion like Ramadan
this will increase sales and generate profit.
3) MEET-THE-COMPETITION PRICING:
engro foods olpers milk pricing are around the same level as its competitors.
PLACE:-
Olpers has its own sales and distribution network.
Olpers is available in 80 cities in Pakistan.
Due to EFLs strong relationship building and special discounts
to retail outlets, Olpers has gained a proper placement in the
presence of competitors like Nestle and Nurpur.
PROMOTION:-
Promotional strategies.
The Engrofoods Company uses advertising as its main source of increasing consumer awareness.
It mainly uses the television. There are many television advertisements on Olpers milk. This
source allows the company's products to reach a large audience. Effective advertisement might
be successful in generating initial sales (user trials for the brand), but in the long run only Quality
products are able to survive and generate repeated sales. The high ethical standard of
Engro Foods is the driving force behind a quality product which has outperformed all
expectations and has penetrated the market at an enormous rate.
5. DISTRIBUTION NETWORK:
NORTH ZONE:
Rawalpindi
Peshawar
CENTRAL ZONE:
Lahore
Multan
Gujranwala
SOUTH ZONE:
Karachi
Hub
Nawabshah
DISTRIBUTORS IN KARACHI:
Olpers have seven distributors in Karachi which are as follows:
6. MARKETING CHANNELS:
1. STRENGTH:
ENGROS BACK:
Olpers milk is a brand of engro food.
Engro food can easily afford research and development.
Engro can distribute the brand through better channel.
PR WITH FARMERS:
2. WEAKNESSES:
OLWELL TVC:
Olwell ad which is based on western life style failed to analyze in Pakistan, where practicing
muslim reside, ignoring the ethics, religious beliefs and cultural values.
3. OPPORTUNITIES:
Government has decided to increase framers funding. This is an opportunity for Engro by
which farmer will be able to store the milk for longer time than previous one.
Growing dissatisfaction with open milk and increasing awareness about health and
hygiene issues have led to increased processed milk consumption.
4. THREATS:
Competition may pose a threat, For Olpers it might be difficult to penetrate in market
where the loyalties exist for such brands as Nestle and Haleeb.
Limited availability of (external) support
Current national difficult economic situation; potential negative consequences for
investments in the research sector
They are characterized by unfavorable trends like: Downsizing, Obsolescence , price wars,
competitors with superior skills and products, shifts in consumer tastes, changing
technology.
Consumers perceptions and price differentials can cause a threat for the company.
Companies segment the market so that they can target the group of customers who share
similar needs and wants. They want milk to be white care fully processed, and good for
health and bones. Keeping this thing in mind olpers
milk has been segmented.
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Geographical Segmentation
Demographic Segmentation:
Psychographic Segmentation:
Olpers have segmented the market on the basis of psychographic factor such as
personality traits, life style and values, the market for those who are goal
oriented and focused on their careers, and experience those who are seeking
variety in milk sector. Who want to be successful have high aims and are already
doing quite well in their concerned fields. The Olpers product have targeted
experience people because the company has given them a new set of brand.
Olpers target traditional people who are the believers with concrete beliefs
because their ads for olpers also show that they are targeting believers ,
traditional conservative people with concrete beliefs. It also show the belief of
healthy life with processed milk and plays an emotional aspect more.
Behavioral Segmentation:
Olpers product have been segmented on the basis of benefits that consumer seek in the milk.
In this case, people look for a brand that can be used for all purpose from drinking to tea
whiteners. The ads also show that consumers should increase their milk consumption for
example with every tea they should use Olpers, Every morning they should drink olpers milk
and every day they should feed their pets with olpers milk there may be some hard core loyal
in the milk sector. Loyalty may be towards such established brands such as nestle and haleeb.
There might even be switchers and shifting loyal in the milk sectors that are either price
sensitive or want variety. As a result marketers needs to find ways to make the hard core
loyal attracted to the olpers brand and shifting loyal and switchers to convert into hard core
loyal as well.
Geographical Segmentation:
Geographic segmentation is done using the spatial location to segment the market. In
geographic segmentation there are different schemes for the different geographical units
such as states, regions, cities. Markets are mainly divided into the rural and urban areas.
An estimated 9 to 12 million liters of milk every year are consumed by the urban consumers
in Pakistan. A significant proportion of the milk produced in rural areas is consumed at
9. COMPETITOR ANALYSIS:
NURPUR:
The company was incorporated in 1985. A wholesome life is what Nurpur stands for with Health,
Energy and Taste, being the vital ingredients. Nurpur is Ultra High temperature treated milk
which can be kept outside the refrigerator for three months. Packed in250ml, 500ml, and 1000ml
volumes in Tetra Packing.
HALEEB:
Haleeb Foods was established in 1986 and its first product was Haleeb milk. Haleeb is
pasteurized, homogenized, and standardized pure UHT milk. Packed in easy to open, 6-layered
Tetra Pak Slim Brick Aseptic packaging, it comes with a 3months shelf life. It is available in
three sizes 250 ml, 500ml and 1000ml.
https://www.google.com.pk
http://www.engrofoods.com/lead_board.html
http://www.engrofoods.com/dairy.html