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Engro Foods Limited
Engro Corporation
 Introduction
o Engro Corporation Limited (formerly known as .Engro
Chemical Pakistan Limited.) is one of the largest industrial
corporations in Pakistan.
o It operates in various sectors
• Fertilizer
• Food
• Energy
• C hemical
• Business Automation Solutions
Engro Corporation
o It is a public sector company listed on KSE.
o The current share market price of Engro Corporation
Limited, as of June 10, 2011 is PKR 187/- per share.
o It start is operation in 1957 as an Esso/Mobil joint venture.
o It has following business units
• Engro Polymer
• Engro Energy
• Engro Fertilizer
• Engro Foods
• Engro Foods Supply Chain
Engro Foods Ltd
 Introduction
o Engro Foods Limited was formed as a wholly owned
subsidiary of Engro Corporation in 2005.
o It start its operation in 2006 and become major player in
Food industry.
o It launches multiple products
• Ice Cream
• Flavored Milk
• Fruit Juices
• Milk Powders
Products
Mission Statement:

“Build branded food business to improve quality of

life by offering tasty, affordable and high nutritional
products to our consumers while maximizing
stakeholder’s value. ”
Vision Statement:

”Aim at transforming the company within the five

years into first national food industry giant, then into
regional force and finally into a global player.”
Objectives and goals:

Engro Foods main objectives are to supply everyone

their favorite Olper’s Milk and to satisfy the
consumer need and wants. EngoFoods second
objective is to increase the value for the stakeholders
and company value. We want to be the major player
in the food industry.
Market Segmentation:

 Demographic Segmentation

 Psychographic Segmentation

 Behavioral Segmentation
Board of Directors:
The board of director committee meets at least once
every quarter to review the financial standing of the company,
the business polices. The president handle the meeting and
review the stakeholders standing and other business policies
and discuss the matters with other directors.
Engro’s Board of Directors includes eight non-executive
directors and five executive directors, who share the
collective responsibility of ensuring that the affairs of the
organization are managed competently and with integrity. The
Board has been reconstituted as of April 2009, supplementing
the number of non-executive directors
Corporate Level Strategy:

Engro Foods is horizontally integrated itself and

increase its number of products. At this time
company has a lot number of products in the market.
Business Level Strategy:

Engro Foods wants to achieve more market share than

other competitors. In order to achieve the more
competitive advantage company uses the differential
strategy by differentiate its products from other
competitors. Engro Foods differentiate itself in the
form of taste, quality and availability of their product
in the market.
Functional Level Strategy:

 Marketing Strategy:

 Financial Strategy:

 HRM Strategy:
SWOT
Analysis
SWOT Analysis
Strengths: (internal)

 Good relationship with farmers.

 Positive response from customers.
 Strong consumer and product research.
 Third generation plant.
SWOT Analysis
Weaknesses: (internal)

 Engro food is not having it’s own dairy forms. Company gets
milk from farmers.
 Engro foods totally depends on the Tetra Packs for the packing
of their entire dairy products.
 Engro foods have 34 out of 40 milk collection centers are
located in punjab, whereas its only milk processing facility is
situated near sukkhur(Sindh).
SWOT Analysis
Weaknesses: (internal)

 When engro food launshed its first dairy product, Olper’s Milk
on March 20, 2006. But Engro Foods brand portfolio still
consists of just 3 products that is Olper’s Milk, Olwell Milk and
Olper’s Cream
SWOT Analysis
Opportunities: (external)

 Increases in funding by government.

 Increased in consumption of PM (processed milk)
 Awarreness.
 Third Largest Milk Producing Country.
SWOT Analysis
Threats: (external)

 Competition
 Perceptions and Price Differential.
BCG Matrix
BCG Matrix
 BOSTON CONSULTING GROUP (BCG) MATRIX is
developed by “BRUCE HENDERSON “of the
BOSTON CONSULTING GROUP IN THE EARLY
1970’s.

 According to this technique, businesses or products are

classified as low or high performers depending upon their
market growth rate and relative market share.
BCG Matrix
Relative Market Share
High Low
Stars Question Mark
O more Olfrute
Market Growth Rate

Tarang
High

Cash Cows Dogs

Olpers Tarang Powder
Low
BCG Matrix
 It is a portfolio planning model which is based on the
observation that a company’s business units can be classified in
to four categories:
 Stars
 Question marks
 Cash cows
 Dogs

 It is based on the combination of market growth and market

share relative to the next best competitor.
Stars (High growth, High market share)
 Stars are leaders in business.
 They also require heavy investment, to maintain its large
market share.
 It leads to large amount of cash consumption and cash
generation.
 Attempts should be made to hold the market share otherwise
the star will become a CASH COW.
 Omore
 Tarang
Cash Cows (Low growth , High market share)

 They are foundation of the company and often the stars of

yesterday.
 They generate more cash than required.
 They extract the profits by investing as little cash as possible
 They are located in an industry that is mature, not growing or
declining.
 Olpers
Dogs (low Market growth, low market
share)
 Dogs are the cash traps.

 Dogs do not have potential to bring in much cash.

 Number of dogs in the company should be minimized.

 Business is situated at a declining stage.

Tarang Powder
Question Marks (High Growth, Low Market
Share)
 Most businesses start of as question marks.
 They will absorb great amounts of cash if the market share
remains unchanged, (low).
 Why question marks?
 Question marks have potential to become star and eventually
cash cow but can also become a dog.
 Investments should be high for question marks.
 Olfrute
PEST Analysis
PEST Analysis

 Political Factor.
 Economic Factor.
 Social Factor.
 Technological Factor.
PEST Analysis
Political Factors:

It includes rules and regulation by the government. Every organization

can run it’s operation sucessfully when it follows the laws rules and
regultion related to them.
PEST Analysis
Economic Factor:

Every organization have impact by it’s economic factorsand they must

respond economically.
PEST Analysis
Social Factor:

The improvement in litracy rate brings the awarness about tetra

packing.
PEST Analysis
Social Factors:

The improvement inlitracy rate brings awarness about tetra

packing, this will enhace tetra packing’s sales e.g olpers, tarang,
olfrut etc. increase in litracy rate will change the mind of the
peoples to preffer standardised milk instead of open milk.
PEST Analysis
Technological Factors:

This factor also effects enviroment. Technology brings

competitive advantage for any organization.
Porter’s F i v e
F orce s Mod e l
Porter’s Five Forces Model
Threat Of New Entrant
 Cost and capital.
 Specalist knowledge.
 Technology protection
 New idea.
Bargaining Power Of Supplier
Bargaining power of supplier is effected by different factors.
i.e no. of suppliers. Most of the time companies own
supply of raw material.
Barganing Power Of Buyer
An indiviual buyer can’t effect the indutry while large no. of
buyer have more power with the industry. There are
large no. of milk supplier in the market so there is less
barganing power of buyer.
Avalibility Of Substitute
The threat of substitute is always there in the food
industry. Companies usually focus on niche area in which
they have competitive advantage.in food industry there is
more competition in the food industry so, threat of
substitute in food industry is more.
Competitive Rivarly Within The Industry
The food industry is highly competitive. The difference
between 1 food company to other is not that
much.companies try to beat with low cost, quality and
customers satisfaction.
Any Question?