Pakistan is proud of her youth, particularly the students, who are nation builders of tomorrow.

They must fully equip themselves by discipline, education, and training for the arduous task lying ahead of them.

When you have got that light of knowledge by means of education and when you have made yourselves strong economically and industrially, then you have got to prepared yourselves for your defense -- defense against external aggression and to maintain internal security.

Dedicated To: THE Great Quaid Muhammad Ali Jinnah

PROJECT:
Submitted To:

Pro Babar Hameed

Submitted By
NAME
Mubasher Rafique Waseem Hasan Muhammad Tayyab Fahad Hussain Asif Iqbal

Roll No.
10-007 10-026 10-027 10-054 10-056

DEPARTMENT OF BUSINESS ADMINISTRATION UNIVERSITY OF SARGODHA

Acknowledgements:

First of all, our most sincere thanks are due to our ALLAH, the MERCIFUL, without WHOSE benign consent this piece of project work would have been impossible. Our special thanks goes to our parents and kind teachers whose help and support and special prayers went along each and every stage.

Then of course, our beloved teacher Mr. Babar Hameed who is generous enough to spare his precious time and always accessible, and who made himself available every minute we met him for questions regarding to project.

ENGRO FOODS
(PVT) LTD Launching

INTENSE COFFEE
Fresh To Core

Copyright 2011

BACK GROUND:
Search for oil by Pak Stanvac, an Esso/Mobil joint venture in 1957, led to the discovery of Mari gas field situated near Daharki -- a small town in upper Sindh province. Esso was the first to study this development in detail and propose the establishment of a urea plant in that area. The proposal was approved by the government in 1964, which led to a fertilizer plant agreement signed in December that year. Subsequently in 1965, the Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares owned by Esso and 25% by the general public. The construction of a urea plant commenced at Daharki the following year with the annual capacity of 173,000 tons and production commenced in 1968. At US $ 43 million, it was the single largest foreign investment by a Multinational Company in the country. A full-fledged marketing organization was established which undertook agronomic programs to educate the farmers of Pakistan. As the nations first fertilizer brand, Engro (then Esso) helped modernize traditional farming practices to boost farm yields, directly impacting the quality of life not only for farmers and their families, but for the community at large. As a result of these efforts, consumption of fertilizers increased in Pakistan, paving the way for the Companys branded urea called "Engro", an acronym for "Energy for Growth". As part of an international name change program, Esso became Exxon in 1978 and the company was renamed Exxon Chemical Pakistan Limited. The company continued to prosper as it relentlessly pursued productivity gains and strived to attain professional excellence. In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon Chemical Pakistan Limited, in partnership with leading international and local financial institutions bought out Exxons 75 percent equity. This was at the time and perhaps still is the most successful employee buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company has gone from strength to strength, reflected in its consistent financial performance, growth of the core fertilizer business and diversification into other fields. Investment in people, process solutions and resource conservation initiatives have reduced energy use per ton of urea by a third, whilst increasing urea production nearly six-fold since 1968. Not only does this save money, it stretches non-renewable energy sources and mitigates the impact of waste. Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovatively optimizing our resources, Engro relocated fertilizer manufacturing plants from the UK and US to its Daharki plant site an international first. Our pioneering spirit continues in our social investments, exemplified by the only snake-bite treatment facility in the Ghotki region and the first telemedicine intervention in the country.

ENGROS BUSINESSES (SBUS)

Engro Foods Limited (EFL):
ENGRO FOODS LIMITED is the 100% owned subsidiary of ENGRO. The company's milk production capacity is 700k litters per day. Moreover an investment plan of $ 3.4 billion in Engro Foods has been approved by the board for: expanding UHT capacity to 900k litre per day, expanding milk powder capacity to 70 kilo per day, import of 1000 cows and an ice cream plant. The company is all set for growth as the milk business profitability is increasing due to increasing consumption of milk and increasing prices of dairy products. Besides selling milk, the company also sells the company also sells related products such as creams and unbranded products such as ghee, and recently introduced a milk whitener; namely "Tarang". Currently, the company is incurring losses due to expansionary activities. The value of the ENGRO FOODS LIMITED is Rs.36 in total subsidiaries value of 63.4.

Engro Energy (EEL):

ECPL holds 100% equity of EEL. The plant started its production in 2009. The plant has production capacity of 217 MW is located at Qadirpur (Ghotki District). The plant will cost US $ 205 m; of which 75% is to be raised through offshore debt financing while rest to be raised through an equity issue. The value of the EEL is Rs.10.7 in total subsidiaries value of 63.4.

Engro Innovative Automation Pvt Ltd (EIAL):

ECPL holds 63% of EIAL. The core business of EIAL is to provide process control solutions to leading industrial units. During CY07, the company has acquired 70% stake in a US based Automation and Engineering company named Advanced Automation LP (AALP).

Engro Polymer and Chemical Limited (EPCL):

EPCL is a joint venture between Engro Chemicals and Mitsubishi Corporation of Japan. EPCL's facility is designed to produce 100k tones of PVC resins; the plant is located at Port Qasim. The company is going through expansion of PVC manufacturing capacity after which the production capacity will increase to 150k tpa. The plant is being setup at a cost of $220 million and was completed by 1H-CY09. For financing purposes ECPL injected equity worth Rs. 1.5 bn. The designed facility will also be able to produce additional intermediary products and caustic soda. The company is showing increasingly high numbers in its bottom line and it's a great source of dividend revenue for ECPL. The company paid a dividend of Rs. 229 million in CY07.

Engro Vopak Terminal Limited (EVPL):

It is a joint venture with Royal Vopak of Netherlands. Engro holds 50% of equity. The core business of the company is storage and handling of chemicals. The Engro Vopak has entered into an agreement with EPCL for ethylene storage services, and plans to construct first cryogenic storage facility, which would cost $ 30 mn. All the financing will be raised from debt issue. The company paid a dividend per share of Rs. 5 in CY07. The profit of the company is expected to grow by 18-20% and the company is expected to maintain a payout of 92% going forward. The value of the EVPL is Rs.11 in total subsidiaries value of 156.5.

EEPL: Engro Eximp Pvt Ltd:

EEPL holds 100% equity of Engro Eximp. Engro Eximp deals in the business of imported fertilizer The Company offers value to ECPL as the company gets imported fertiliser at less cost than it would have to bear otherwise. The imported fertiliser demand is expected to continue at a growth rate of 30% till 2010 and after that import of fertiliser will be almost zero as the capacity expansion of 1.8 mtpa by Fatima Fertiliser and Engro Chemical Pakistan will become operational by 2011.

The value of the EEPL is Rs.5.7 in total subsidiaries value of 63.4

SALES SETUP OF THE COMPANY:

The Company is operating 5 Regional Offices located in important cities of the Pakistan to handle the domestic business. These regions are

Peshawar Every region has its own RSM (regional sales manager). Rawalpindi region covers the following areas and have there own ASMs (area sales manager).

1. 2. 3. 4. 5.

Karachi Multan Lahore Rawalpindi

ENGRO FOODS HISTORY :

The growth strategy which was adopted by ENGRO Chemical Pakistan limited was diversification they diversify chemicals to food business Engros 40 year old relationship with the farmer also gives Engro food another edge over the competitors 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 litres per day and UHT milk capacity of 200,000 litres 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 companys 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 will work with the Pakistan Poverty Alleviation Fund and its three partner organizations to help implement sustainable business models that increase farmers profitability and develop a positive social and business climate for growth and expansion of live stock and other forms of value added agriculture.

VISION STATEMENT:
Most Innovative and fastest growing food company offering products enjoyed in "Every home every day"

MISSION STATEMENT:
Engro Foods mission is to create highest standards of products, providing high quality delicious, truly healthy & organic beverages. We will strive to grow our products while maximizing stockholders equity.

ENGRO FOODS BRANDS:

Olpers milk

Olpers cream

Olwell

Tarang

Omore

Olfrute

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

ORGANIZATIONAL CHART

INTRODUCTION OF NEW PRODUCT:

A manufacturer says to customer, I have produced this new product you have to buy it. A customer says to manufacturer, I need this thing, produce this for me This is a very important step now a day to produce a new product. In our product we have kept this in our mind that first well have to satisfy our customers desires and then well offer this product in the market after getting suggestion of customer because Customer is King. We have produced our product keeping in mind the customers will. Origins of Coffee

Coffee drinking first became popular in Yemen in the 15th century Coffee derives its name from Arabic Qahwah is the Arabic word for coffee and Turkish influence resulted in pronunciation as qahveh Qahwah is the name given to coffee in Arabic but means wine Coffee first became popular in Yemenite Sufi circles who began to refer to coffee as wine because like wine it also dulls the appetite and therefore was called qahwah Coffee became the replacement for wine and Sufis transferred the meaning wine to coffee and introduced it further into Cairo Coffee was spread to Turkey through the Sufis who used the coffee to help keep them stay awake during devotional exercises performed all night Coffee is not a native plant to Arabia It is a native plant of Abyssinia (Ethiopia) and can be found growing wild and cultivated From Ethiopia it was brought to Arabia and a variety of legends exist to how coffee was discovered Around 800 A.D. coffee was said to be discovered by an Ethiopian goatherd whose name was Kaldi Kaldi noticed his goats had more energy and were dancing from shrub to shrub eating the cherry-red berries that contained the coffee bean He tried the beans himself and soon found himself frolicking with his flock

NEW PRODUCT DEVELOPMENT PROCESS:

1. IDEA GENERATION:
Now come to this point from where this idea has come. As it is commonly known as that there is a stimulus behind every invention. Similarly, there must be some stimulus behind this idea. We have decided to make either coffee or tea because these are the products that have high demand. We have lots of ides regarding tea products like making tea in regular packs, making tea bags or to make ready-made tea bags that will include tea, milk and sugar. Similarly in our mind we have the idea of 3in1 coffee (ready-made) product that will include coffee, coffee creamer & sugar and this idea struck to our mind as one of our competitors has launched this product.

2. IDEA SCREENING:
We had many other ides about Coffee and Tea product but select ready-made 3in1 coffee product because we know that world is progressing rapidly and people are indulging in their lives too much day by day. They want every thing prepared. Life of this world is very furious that if some one wants to survive in this hasty world he has to run with the fast time. We would like to explain that why the need of this product urged in our minds. What are the reasons behind this? Why we decide to produce this product? Why we want to bring this product in market? These are some questions that we would like to explain. Again the answers of these questions lie in the fact that life has become very much fast in order to prevail the pleasure of life, it is necessary to find ways which can fulfill the requirements. This is also a short attempt tried by us to save time and give gratification in your life through this product which will be helpful in saving your precious time.

3. CONCEPT DEVELOPMENT AND TESTING:

Testing new product with the group of target consumers to find out, if the concepts have strongly consumers appeal In order to check our concept whether it is according to the demand and fulfill the requirement of people we had taken our product in physical form to some of people for the concept testing.

4. MARKETING STRATEGY DEVELOPMENT:

SEGMENTATION:
This new INTENSE COFFEE solution is only for coffee lovers. Our main target segments are health conscious and stuck in work people. "Coffee is one of the fastest growing segments in the beverages market and our plan is to capitalize upon the rising health consciousness associated with coffee among people in Pakistan.

Demographics: AGE: Gender: INCOME LEVEL: EDUCATION LEVEL Geographic:

All the areas of Pakistan where we have supply chain of our different products.
20-55 years Both male and female Upper-upper and upper middle class Educated

Psychographics:
Time conscious, health conscious, fashionable, quality conscious , educated

Behavioristics:
Brand loyal, high usage rate

MARKET TARGETING
We will use mass-marketing (undifferentiated) strategy as we are giving one offer to whole market. We aspire to capture at least 40% market share of target market each year by expanding our own efforts and increasing our offering associates. Industry is now on the maturity stage. Large players has established their brands in the market and enjoyed huge profit margins. Now they are looking towards product differentiation and multi segmentation because consumers are now more taste conscious and looking for variety available to them in a coffee market.

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PRICING
Companies usually adjust their basic prices to account for various customer differences and changing situations. Here are different adjustment strategies. Discount and Allowance Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing We have analyzed this price while making price strategy for coffee sachet. The cost of raw material Ingredients Cost (in rupees per kg) 300 250 80 630 Net Weight per sachet(in grams) 6 8 5 19 Cost per sachet (in rupees) 1.80 2.00 0.40 4.20

Coffee creamer Coffee Sugar Total

Here is price distribution in pricing strategy.

Other Ingredients (Flavor) = Rs.0.10 Packaging and Expense =Rs. 1.00 Marketing Expense =Rs. 1.20 Profit = Rs.1.50 Total Retail Price =Rs.8.00 Incentive for Retailer = Rs.2.00 Consumers Price = 10 Small packet contains 25 sachets and retail price of this packet is Rs.190, Rs.10 is retailers incentive and consumers price is Rs.240 there is Rs.10 incentive for consumers. Large packet contains 50 sachets and retail price of this packet is Rs.380, Rs.20 is retailers incentive and consumers price is Rs.480 there is Rs.20 incentive for consumers.

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NEW PRODUCT PRICING STRATEGY

We are following the market-penetration pricing strategy in order to attract large number of market share by keeping low price for new product.

DISTRIBUTION
Company Retailer Wholesaler Customer

We will follow the production concept for our product means that we will follow intensive distribution and place the product in all sorts of store ranging from super markets to single shop. In super market we place a separate rack for our product. Analyzing consumer needs: As our target consumers are mostly common people and they will surely want the product availability at their arm distance & will not travel more to purchase the product so we place our product in convenience stores. Furthermore, as our target market is very large so we reach the customers through wholesalers because it is more convenient for company to deal with 4 or 5 wholesalers instead of dealing with loads of customers.

PROMOTIONAL STRATEGY
As we are offering our product through wholesalers and retailers to customers so, we are using the push strategy in order to acquire our main objectives of large market share

PROMOTIONAL TOOLS
The promotion strategy of our product is based upon truth about the product as it is the product available in the market which is more convenient in making coffee. You just have to drop the sachet in hot water and enjoy the simply refreshing coffee. In promotion we will follow these steps: 1. Advertising A specific communication task is to be accomplished with a specific target audience during specific period of time.

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i. Informative Advertising As our product is totally a new one public dont have much awareness about it. So first of all we set the advertisement informative. Tell the public that how our product works and how they can get the fresh coffee in low cost. A 3in1 product, coffee creamer, sugar and coffee all in one sachet. Now you dont have to other about taking care of coffee creamer and sugar, just drop the all ingredients in hot water cup and enjoy the energizing and tasteful coffee. 2. Sales Promotion Sales promotion consists of short term incentives to encourage purchase or sales. We will use two different approaches in sales promotion. i. Consumer promotion ii. Trade promotion i. Consumer Promotion In consumer promotion we promote our product sale by offering premium and samples in the very start of development. Samples Samples are a sort of free trial of the product. In order to introduce our product to customers and to show its convenience we will do free sampling only in the university and factory cafeterias. ii. Trade Promotion In this sort of promotion we will directly give incentives to retailers and wholesalers. We offer a special package for the retailers who will buy our product i.e. we offer them to design their sign board if they reserve a rack for our product. 3. Advertising Media Our goal is to familiarize 60% target markets in first 3 months. So in order to achieve that goal we decide the media which includes: Television Radio Newspapers Sign boards 4. Direct Marketing We will also use direct marketing for this purpose our specially designed vans move to different areas and show directly to customers how to make refreshing coffee in not more than 2 minutes.

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5. Online Marketing The role of internet cannot be denied in the present era. Our ads will give the solution to be refreshing again. We also use direct mail marketing.

5. BUSINESS ANALYSIS:
Following are the predicted sales & profit of the product for the first year. Sales(Sachet) Millions 400 Sales(Rs.) Millions 400*10=4,000 Cost(Rs.) Millions 400*6.50=2600 Incentive for Retailer(Rs.) Millions 400*2=800 Profit(Rs.) Millions 400*1.50=600

Our only competitor is Nestles product Nescafe 3in1. We aspire to get at least 40% of market share after one year of launch.

6. PRODUCT DEVELOPMENT:
After the analyzing business, we enter in development phase. INTENSE COFFEE, coffee sachet is in vertical shape and its length is 15cm and width is 3cm.The weight of the sachet is 20 grams. In these 20 grams, 6gram is coffee creamer, 5gram is sugar ,8gram is coffee and 1gram is flavor. The sachets are available in 2 packets. Smaller one contains 25 coffee sachets and larger one contains 50 coffee sachets. Ingredients Coffee creamer Coffee Sugar Other Ingredients Total Net Weight per Sachet(in grams) 6 8 5 1 20

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PRODUCT
i. Product Attributes
(a) Quality As there are always rumors about new products that their quality will not be as good as the existing products but our mission is to change this concept about new products by delivering high quality coffee to our customers. Our claim is to provide unique taste through high quality coffee. (b) Features Our point of difference is that we are providing all the ingredients necessary for making coffee, in one sachet. It is very easy to store and easy to use. You dont need to store all ingredients separately. We are proving all ingredients only in one sachet for the convenience of our customers. Sometime you want to take coffee but change your mind because of the fear of time wastage. But with our INTENSE COFFEE there are no more fears of such type. (c) Style & Designing INTENSE COFFEE, coffee sachet is in vertical shape and its length is 15cm and width is 3cm The weight of the sachet is 20 grams. In these 20 grams, 6gram is coffee creamer, 5gram is sugar ,8gram is coffee and 1gram is flavor. The coffee sachets are available in 2 packets. Smaller one contains 25 coffee sachets and larger one contains 50 coffee sachets. The only thing you have to do is to put all the ingredients of coffee sachet in a cup of hot water and shake it for a moment and your coffee cup is ready.

(ii) Packaging
The packets which are made for coffee sachets are very easy to carry and protect the coffee sachets from damage like pressure. Inside the external packaging, the coffee sachets are further covered in plastic sheets to save sachets from weather conditions and moisture

(iii) Branding
Now days, customers view brand as an important part of product and branding can add up value to the product. Branding is so strong that today hardly anything goes unbranded. So we have choose the name of our product which clicks in mind very sharply and have a good and energetic impression, INENSE COFFEE. INTENSE means Extreme or being specific a lot of Action in a short period of time. So the brand name truly represents the functions of our product and also gets attraction.

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(iv)Labeling

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(V) Product Support Services:

Once the company has assessed the quality of various products services to customers, it can take steps to fix problems and add new services that will both delight customers and yield profits to the company. Our company is using the sophisticated mix of phone, e-mail, internet, and interactive voice and data technologies to provide support services that were not possible before.

7. COMMERCIALIZATION:
We will commercialize our product in predefined areas. After that, we will properly manage our launching strategy so that our product may capture expected market share. Just commercialization is not enough but managing the market properly, is necessary because many products fail due to poor management regarding market situations

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SWOT ANALYSIS
Any organization which is well aware of its weaknesses and opportunities can prevail in rapidly changing market. Same is the case of with our product as our product is new in market and a new thing always has some room for improvement. So in order to keep an eye on our products weaknesses and strength we have done SWOT analysis.

STRENGTHS:
Our strength is our point of difference i.e. it is more convenient for making coffee Time saving Price is also our strength as it contains necessary for making and is affordable.

According to Mr. Ali Akbar, Director Marketing EFL, In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your COMPETITORS WEAKNESS!

WEAKNESSES:
As a new product it has a low market share. As it is new product to market and people have not the idea about this product so it will take time for recognition.

OPPORTUNITIES:
We will train our sales force. We may add brown sugar in coffee to make it drinkable for sugar patients.

THREATS:
People are not familiar with this product so huge investment is necessary for the marketing and advertisement campaign.

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