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Engro Foods: Marketing & Recruitment

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A fully researched presentation on Engro Foods Incorporated Pakistan; discussing at length their recruitment policies, as well as a detailed analysis on their marketing strategies, brand building tactics and certain pros and cons attached to their unique marketing techniques.
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ENGRO FOODS INC. MARKETING & HRD
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Page 1: Engro Foods: Marketing & Recruitment

ENGRO FOODS INC.MARKETING & HRD

Page 2: Engro Foods: Marketing & Recruitment

COMPANY PROFILE

• Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd

• Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell, and Olpers cream

• Set up two processing plants at Sukkur and Sahiwal• Other Engro businesses:

– Engro Fertilizers Limited– Engro Foods Limited– Engro Polymer & Chemicals Limited– Engro Powergen Limited– Engro EXIMP Private Limited– Engro Vopak Terminal Limited– Avanceon Limited

Page 3: Engro Foods: Marketing & Recruitment

COMPANY PROFILE

• Their goal is to be one of the biggest players in the food business

• Their aim is to dominate the food business, and to achieve this they will settle for nothing less than the cream

• The latest results show that:– Engro Foods turnover was Rs 10.6 billion

versus Rs 5.6 billion last year– Engro Foods posted a loss of Rs. 391 million

for the nine months ended, which was better than expected. Of this, dairy business loss was Rs. 28 million

Page 4: Engro Foods: Marketing & Recruitment

COMPANY PROFILE

– Engro Foods UHT market share now at 38%, equal to that of Nestle

– Distribution network now stretches to over 212 towns

– Farm has over 500 milking animals at September 30th, with the remainder expected to start milking by November (total of 1,925 animals)

– Ice Cream now has 36 SKUs launched and reaches 12 towns

– Omore’ ice cream is in the number 2 position behind Walls

Page 5: Engro Foods: Marketing & Recruitment

BRAND PORTFOLIO

OLPER’S MILK

OLPER’S CREAM

OLWELL

TARANG

OMORE

2006

2006

2006

2006

2009

OWSUM 2009

Page 6: Engro Foods: Marketing & Recruitment

PRODUCT DESCRIPTION

OLPER’S MILK

• STANDARDIZED PURE UHT MILK

• 3.5% FAT & 8.9% SOLID NONFATS

OLPER’S CREAM

• PREMIUM CREAM PROCESSED FROM FRESH MILK

• RICH IN THICKNESS & NUTRITIONAL VALUE

OLWELL MILK

• LOW FAT HIGH CALCIUM MILK

• FOR WEIGHT WATCHERS & HEART PATIENTS

Page 7: Engro Foods: Marketing & Recruitment

PRODUCT DESCRIPTION

TARANG

• LIQUID TEA WHITENER

• SOURCE OF HIGH PROTEIN & LACTOSE

OMORE

• DAIRY BASED PREMIUM ICE CREAM

• INTRODUCED A 3 TIERED ICE CREAM

OWSUM

• FLAVORED MILK

• 3 FLAVORS: CHCOLATE, STRAWBERRY & MANGO

Page 8: Engro Foods: Marketing & Recruitment

HUMAN RESOURCE MANAGEMENT

• Engro Foods defines HRM as the management of the company’s most valued assets- its employees who individually and collectively contribute to the achievement of the business

• The HRM principles of EFL are centered on:

• Working environment– Upholding the tradition of excellence and to become

the employer of choice

– A workplace where employees feel confident, valued and inspired

Page 9: Engro Foods: Marketing & Recruitment

HUMAN RESOURCE MANAGEMENT

• Work life balance– Understand the importance of family and appreciate that

employees need to balance their professional and personal responsibilities

– Encourage employees to take part in numerous programs aimed at strengthening their overall wellbeing

• Employee friendly policies Formulation of many unique policies Create a more positive work environment Promote greater gender diversity Provide opportunities for training and development and Build career opportunities Other policies include: Ethics policy, gift policy, non-

discrimination & anti-harassment policy, maternity leave policy, part time work policy

Page 10: Engro Foods: Marketing & Recruitment

RECRUITMENT

• Human Resources Committee (FOR TOPMANAGEMENT)– The HR Committee comprises of three

members, including the chairman, from the non-executive Directors of the Board

– The HR Committee has been delegated the role of assisting the Board of Directors in ensuring that the Company is able to attract and retain a professional, motivated and competent workforce.

– The Committee evaluates and recommends salary structures, variable-pay, key-position recruitments & succession plans to the BOD for their review and approval.

Page 11: Engro Foods: Marketing & Recruitment

RECRUITMENT

• The Recruitment and Selection Committee – Responsible for ensuring that the

Company adds only top-class talent to its existing talent pool in order to sustain the already-high standards of professionalism and competence in the Company.

– The committee consists of managers with diversified experience in order to ensure recruitment of well-rounded individuals

Page 12: Engro Foods: Marketing & Recruitment

RECRUITMENT

• Recruits include: GRADUATES MASTERS & MBAs UNDERGRADUATES

– Engro regularly recruits graduates through career fairs and graduate recruitment programs

– The Graduate Trainee Program at EFL (Karachi)

PROJECT TRAINEES & INTERNEES– Engro offers internship & short project opportunities to

students

• Their selection process has several stages:– Application form and resume– Cognitive ability tests– Telephone interviews– In-person interviews/site visits

Page 13: Engro Foods: Marketing & Recruitment

RECRUITMENT

• ONLINE SOURCES OF RECRUITMENT– ROZEE.PK (LEAST COST MAXIMUM BENEFIT RECRUITMENT

STRATEGY)

ROZEE.PK IS PAKISTAN'S MOST POWERFUL

RECRUITING PLATFORM USED BY OVER 850,000 PROFESSIONALS AND 18,000 EMPLOYERS. OVER

95% OF ROZEE.PK'S 3.7 MILLION ANNUAL

VISITORS ARE FROM WITHIN PAKISTAN, GIVING IT A

LARGER PROFESSIONAL AUDIENCE THAN ANY

ENGLISH NEWSPAPER OR MAGAZINE IN THE

COUNTRY.

Page 14: Engro Foods: Marketing & Recruitment

RECRUITMENT

• Campus portals launched at 52 leading universities including LUMS, FAST, IBA and NUST; employers have unprecedented access to graduating students and alumni

• ROZEE.PK is backed by venture capital from ePlanet and DFJ; funds that helped create Hotmail, Skype, Overture and Baidu

• ROZEE.PK is used by some of Pakistan’s most sought after employers to recruit human capital, including Mobilink, Nestle, Oracle, McDonalds, UBL, Microsoft, GlaxoSmithKlein, Mentor Graphics, P & G etc

Page 15: Engro Foods: Marketing & Recruitment

RECRUITMENT

"WE WERE DELIGHTED WITH THE QUALITY OF

CANDIDATES WE WERE ABLE TO HIRE THROUGH

OUR PARTNERSHIP WITH ROZEE.PK.

EFL IS A RAPIDLY GROWING COMPANY AND OUR

PEOPLE ARE OUR MOST IMPORTANT ASSET. OUR

ONLINE HIRING EXPERIENCE HAS YIELDED AN

EXCELLENT RETURN ON INVESTMENT COMPARED

TO CONVENTIONAL METHODS.“Shafaq Omar

General Manager Human ResourcesEngro Foods Limited

Page 16: Engro Foods: Marketing & Recruitment

TRAINING & DEVELOPMENT

• The training and development unit of Engro Foods is located in Karachi

• Employees are provided with both technical and personal training to enhance their working capabilities

• WOMEN NETWORK: WEAVE

– Functions on the belief that networking, coaching and mentoring provides opportunities for people to grow personally and professionally throughout their careers

– Engro is known to be an equal opportunity employer. As part of its diversity initiatives, “WEAVE” was formed to facilitate informal networks and relationships among women employees of Engro

Page 17: Engro Foods: Marketing & Recruitment

MARKETING: COMPETITOR ANALYSIS

• Brands like Milk Pak (Nestle) and Haleeb Milk (Haleeb Foods) have led the dairy market in the world’s 4th largest milk producing country for nearly 2 decades:

– The packaged milk category was originated in 1981 by Milk Pak

– It pioneered Tetra Pack milk in Pakistan– The supply chain involved Collecting milk from rural areas across Punjab Processing the milk through UHT treatment Selling it to consumers in uniquely colored triangular and rectangular

packs designed to prolong the milk’s quality

– Milk Pak’s “Milk Packs” became synonymous with quality milk

– The first real competition came from Haleeb; introduced distinctively blue Tetra Packs to the market in 1986

Page 18: Engro Foods: Marketing & Recruitment

MARKETING: COMPETITOR ANALYSIS

• By 2006 the dairy milk category was growing at 20 percent annually Milk Pak and Haleeb were well-entrenched brands

with distinctive colors and brand promises of providing high quality, natural and healthy milk

Milk Pak was identified by its green and white packaging- the colors of the country- and offered a brand backed with the strong equity of Nestle, coupled with its own traditional heritage

Haleeb was recognized as the blue brand, and professed to have the "naturally thickest" milk

With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely impervious to newcomers

Page 19: Engro Foods: Marketing & Recruitment

MARKETING

• 1ST Case: OLPER’S MILK• 2nd Case: TARANG (TEA WHITENER)

• Intensive advertising carried out to develop/introduce the brand; mostly TVCs

• Initially used brand development strategies:– CREATING AN IMAGE/IDENTITY OF THE PRODUCT

IN ORDER TO ATTRACT CONSUMERS

– BUILDING A FAVORABLE BRAND IMAGE

– BUILDING CONSUMER PREFERENCE– BUILDING CONVICTION THAT IT IS BETTER

Page 20: Engro Foods: Marketing & Recruitment

OLPER’S MILK

• Olper’s launched a massive marketing campaign; initiated by a ‘slice-of-life’ TVC featuring big time celebrities

• Rafey Nisar Zuberi, the marketing manager for Engro Foods, says:

“FROM THE ONSET, WE WANTED TO INTRODUCE A TRUE

PARADIGM, BRINGING THE DAIRY BRAND TO THE FORE.”

• Olper’s chose red as its color- a color far removed from the greens and blues that had become synonymous with packaged milk (DIFFERENTIATING)

Page 21: Engro Foods: Marketing & Recruitment

OLPER’S MILK

“WE WANTED CONSUMERS TO CONSIDER OLPER’S AS A

CONTEMPORARY AND MODERN BRAND, AND ALL OF

OUR COMMUNICATION AND BRAND ATTRIBUTES WERE

GEARED TOWARD ENSURING THAT END.”– The first step was brand building; the aim was to

ensure Olper’s established an image of being a healthy and natural product

– Its optimistic and vibrant tag line-“Good Morning Life”-along with the unique red color became the soul of the Olper’s brand identity

“WE ARE BIG BELIEVERS IN THE PRIMARY TENET OF

MARKETING: GETTING TO KNOW YOUR CONSUMERS THROUGH

RESEARCH. FOR OLPER’S, EVERYTHING FROM THE COLOR AND

THE PACKAGING, TO THE RECIPE AND THE NAME, WAS

THOROUGHLY CONSUMER TESTED.”

Page 22: Engro Foods: Marketing & Recruitment

OLPER’S MILK

• TVCs incorporated PREFERRED

BEHAVIOURAL features of the society to REINFORCE a POSITIVE BRAND IMAGE:– STRONG FAMILY VALUES

– STRONG MORAL VALUES

– JOINT-FAMILY SYSTEM

– MOTHERHOOD

– AN AVERAGE CITIZEN EVERYONE CAN RELATE TO

– SUCCESS DRIVEN INDIVIDUALS

– HEALTHY LIFESTYLE (SUBHA-BAKHER ZINDAGI)

– MILK IS NOT A ONE-TIME DRINK (MORNINGS, EVENINGS & NIGHTS)

Page 23: Engro Foods: Marketing & Recruitment

OLPER’S MILK

“FOR COMPANIES TO BUILD ICONIC, LEADERSHIPBRANDS, THEY MUST ASSEMBLE CULTURAL

KNOWLEDGE.”• Ramazan is a great cultural/religious event;

sales of food-related products increase; a great opportunity to endorse a brand image as proven by marketing done for Olper’s:– ATIF ASLAM ENDORSEMENT OF OLPER’S MILK

– REMAKE OF A TIMELESS NA’AT– REINFORCING A STRONG, POSITIVE BRAND

IMAGE BY EXPLOITING RELIGION-ORIENTEDEXPECTATIONS/FEELINGS OF CONSUMERS

Page 24: Engro Foods: Marketing & Recruitment

OLPER’S MILK

“WE ARE AIMING TO OWN THE RELIGIOUS MONTH AND OURSPECIAL EDITION PACKAGING, RAMAZAN RELEVANT ATL

(ABOVE THE LINE- TELEVISION, RADIO, ETC.) AND TAILOR-MADE IFTAAR ACTIVATIONS, ARE AIMED AT BUILDING THE

NECESSARY ASSOCIATION WE WANT IN CONSUMERS’ MINDS”• BTL (Below The Line-brochures, flyers, etc.) approaches

have also contributed to the brand’s success• The World of Olper’s involves reaching out to different

locations in various cities and having the housewives participate in learning and showcasing milk-based recipes“THE INTENTION IS TO PURELY BUILD TRIAL EXPERIENCES.”

• The Olper’s Consumer Relationship Party is another BTL program, which aims to create and maintain loyalty amongst the customers

Page 25: Engro Foods: Marketing & Recruitment

TARANG

• Used a more exaggerated cultural/fun-loving marketing approach for introducing the brand:– HEAVY RELIANCE ON CELEBRITY ENDORSEMENTS– USED ALMOST ALL ACTORS/ACTRESSES/PERSONALITIES

PRESENT IN THE LOLLYWOOD FILM INDUSTRY

– PROMOTING AN ENERGETIC UP-BEAT BRAND IMAGE

– STORY-TELLING APPROACH: TELLING CULTURAL STORIES(SONI-MAHIWAL) FOR MASS APPEAL

– GETS FULL MARKS FOR A NEW, INNOVATIVE PRODUCT ANDAN INNOVATIVE MASS-MEDIA CAMPAIGN

– STRESSING ON GOOD FLAVOR (CHAI KA SAHI JOR)– SPONSORING SHOWS (TARANG CHOCOLATE HERO)– ATTENTION GRABBING TECHNIQUES

Page 26: Engro Foods: Marketing & Recruitment

TARANG

• Problems in the second approach:– HEAVY ADVERTISING BUDGET FOR A PRODUCT WITH A

DOUBTFUL MARKET

– NEGATIVE IMAGE MANY PEOPLE ASSOCIATE WITH SONG & DANCE

– NOT A VERY GOOD APPROACH FOR PROVIDING A DETAILED INTRO OF A NEW PRODUCT

– UNABLE TO COPE WITH DEMAND (REPORTED PROBLEMS

WITH THE TARANG CHOCOLATE HERO WEBSITE ALTHOUGH

THE SHOW RECEIVED GOOD DEMAND BUT PEOPLE HAD

LITTLE TO DO WITH THE PRODUCT ITSELF)

Page 27: Engro Foods: Marketing & Recruitment

MARKETING FOR OLWELL & OMORE

• Olwell is a low-fat, high-calcium milk with the richness of pure milk

• Along with this Engro Foods expanded its portfolio further by coming up with its ice-cream brand - Omore (launched initially in Lahore only)

• Marketing strategies for both products were carried out through diverse and dynamic approaches

• One way that Engro Foods has chosen to interact with their customer is Float Activity

Page 28: Engro Foods: Marketing & Recruitment

• Engro Foods launched promotional activities which proved very effective in interacting with customers. These include:

– ROAD SHOWS

– RURAL MELAS

– BACHAT BAZAARS

– FREE SAMPLINGS

– CHAIN STORES PROMOTIONS

– BANNERS &POSTERS

– TV COMMERCIALS

MARKETING FOR OLWELL & OMORE

Page 29: Engro Foods: Marketing & Recruitment

OLWELL

• Provided another market for the milk industry

• Segment the market by targeting customers from the higher class in society– This can be advocated by the fact that their TVC

showed a great emphasis on the more privileged parts of society based on a Western life style

– Create a more glamorous tag to their brand

– Showing a man who put off his clothes & remain just in his undergarments, or a half nude lady in a cat walk or men admiring the figures of a lady in a mix gender health club was a more gutsy move in the Pakistani market

Page 30: Engro Foods: Marketing & Recruitment

OLWELL

• They also created an association with the brand through the stripes– A highlight of Olwell packaging

– People were shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell

– Also, the talent, situations and locations connect well and provide to give Olwell a premium positioning

Page 31: Engro Foods: Marketing & Recruitment

OMORE

• The marketing for Omore was dealt in a totally different manner– The way it has been promoted, most of the TVCs

show that its product brings about stronger cultural values and a more family centered and family oriented lifestyles

– A very eye catching campaign starting from jingly television commercials to colorful decorations all over Lahore where it was initially launched

– Dropping pamphlets from an airplane

– Almost every innovative tool has been used to market Omore


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