Presentation on

OLPER’S

Contents

• Introduction• Marketing research &

classification of Olpers• SWOT Analysis• 4P’s in Marketing• Segmenting & target market• Recommendations

Introduction

Engro Foods’ History

•Engro Foods (Pvt.) Limited (EFL) has been established in 2005

•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

"Our vision is to become a fast expanding mega foods company.”

Core Values

1. Leadership 2. Innovation 3. Diversity and International focus 4. Quality and continuous Improvement 5. Candid and open communications 6. Individual growth and development 7. Enthusiastic pursuit of profit 8. Ethics and integrity 9. Safety, Health and Environment

Marketing research &

classification of Olpers

Marketing research

• 1200 names were reviewed and analyzed before Olper was decided.• Once the brand was introduced the organization wanted to add more product lines to it. There fore they conducted another marketing research to find out the success of Olper. • secondary data • questionnaires

Positioning the brand

• Processed milk is seen as less lacking all the nutritions, But Olper’s positions itself as milk that has not lost its nutrients.• The brand has been positioned as an all purpose milk that is meant for everyone, especially for those who live life to the fullest, hence its tag line,“jo dil khol kay jeetay hain unheen kay liyay hai Olper’s”

Packaging

• Olper’s milk and Olper’s cream packed in purple color are quite different and distinctive from the typical green and blue packing used by other competitors.

Malik Asad

SWOT AnalysisStrengths

Weaknesses Threats

Opportunities

Strengths

1. Engro’s Back Olper’s is a brand of ENGRO foods.ENGRO foods can easily afford research and development. ENGRO can distribute the brand through better channel

2. PR with farmers ENGRO has a strong bond and long term relationship with the farmers who are willing to supply milk to the company.

3. Positive response from customers In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s products. 4. Its taste, quality proposition and world-class quality proposition system.

4. Strong consumer & product research AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.

Weaknesses

1. Olwell TVC Olwell ad which is based on Western life style.Failed to analyze in Pakistan, where practicing Muslims reside,Ignoring the ethics, religious beliefs and cultural values.

2. Owning Red Color . There is no color association attached to Olper’s.

3. Milk collection & distribution costs EFL’s 34 out of 40 milk-collection centers are located in Punjab, 1Sukkhur (Sindh). It increases in collection & distribution costs.increases the chances of milk getting spoiled because of increased travelling time.

4. Narrow brand portfolio EFL’s brand portfolio still consists of just 3 products i.e. Olper’s Milk, Olwell Milk and Olper’s Cream.

Opportunities

• 1. Increased funding by Government

Government has decided to increase farmers’ funding.

• 2. Increased consumption of PLM

Each competitor in the milk industry wants to increase penetration of processed liquid milk.

3. Awareness Growing dissatisfaction with loose milk and

increasing awareness about health and hygiene issues have led to increased processed milk consumption.

4. 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.

Threats

1 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.

2 Competition For Olper’s it might be difficult to penetrate in

a market where the loyalties exist for such brands as Nestle and Haleeb.

4P’s

PRODUCT

•Olper’s Milk•Launched on March 20,2006.•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.

Placement & Distribution

• According to Mr. Ali Akbar, Director Marketing EFL,

• “In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your

• COMPETITOR’S WEAKNESS!” • Engro Foods did exactly that.

• They 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 ational and international level.

• Engro FoodsLimited has its own distribution network.

• EFL has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan.

Promotion & Advertising • 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.

Olper’s Milk • 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,

• Olper’s has gained a proper shelf placement in the presence of competitors like Nestle and Haleeb .

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, Haleeb etc.

Size (ml)

Olper’s

Nestle Milkpak

Haleeb

Haleeb Dairy Queen

1000 90 90 90 85

500 60 60 60 54

250 20 20 20 18

PRICE (milk)

Segmenting and targeting the market

for olper’s

Segmenting and targeting the market for olper’s

•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 segmentation

•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.

Psychographic segmentation

•On the basis of psychographics, factors such as personality traits, lifecycles and values the marketers at olper’s have segmented the market.

Behavioral segmentation

•Products have been segmented on the basis of benefits that consumers seek in the milk.

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