M arketing

M anagement

Final Project Topic:

Olper’s UHT Treated Milk

Presented To:Mr. Asad Awan

Presented By: Muhammad Jawad Raza Khalid 093905-042 Agha Mohammad Uzair 093905-008 Waleed Khan 093905-020 Zain-ul-Abdin 093905-048

Program:BBA (Hons)

Submission Date:

Saturday, January 22, 2011

U niversity of M anagement &

T echnology

2

ACKNOWLEDGEMENT

First of all we would like to thank Allah Almighty for his blessings upon all of us so that

we can complete this project successfully.

Secondly we would like to thank our resource person Mr. Asad Awan for helping us

throughout this project. He provided us complete knowledge and understanding of all the

topics covered in this project and made us capable enough to carry out this project. His

class lectures and notes really helped us a lot to complete this task. This report would not

have been possible without his kind guidance.

Finally we would like to thank our families for their support and trust on our capabilities.

3

TABLE OF CONTENTS

EXECUTIVE SUMMARY................................................................................4

COMPANY DESCRIPTION.............................................................................5

ENGRO FOODS - Beginning:..................................................................10

STRATEGIC PLAN........................................................................................14

SITUATION ANALYSIS................................................................................16

MARKET PRODUCT FOCUS.......................................................................26

MARKETING PROGRAM.............................................................................28

IMPLEMENTATION PLAN...........................................................................30

EVALAUATION & CONROL.......................................................................30

REFERENCES.................................................................................................31

APPENDIX......................................................................................................32

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EXECUTIVE SUMMARY

This report is about Olper’s UHT Milk. It starts off with the details of ENGRO Corporation and how & when Engro Foods came in to existence. The report tells history, culture, leadership and values of the ENGRO Corporation. The UHT milk is basically the Ultra-high temperature processing or ultra-pasteurization is the sterilization of food by heating it for a short time at a very high temperature to kill spores in milk. Then it tells the situation of milk industry in Pakistan. Because of various socio economic factors Packaged Milk is still not that popular here. It is the potential to see a need in the market and the drive to turn that need into profit that defines the success of a Good Business and Olper’s saw that need.

Milk is used for drinking, tea, desi ghee, yogurt and butter making. Milk is also used to make Khoya and different types of sweets. Milk processing companies use milk as a raw material to formulate different types of milk i.e. pasteurized milk, UHT milk, condensed milk, skimmed milk, milk powder, etc Different value added products like yogurt, ice cream, butter and cheese are also produced from the raw milk. The demand for processed milk has increased its share in quality conscious consumers.

During the last two decades, processed milk has achieved a good share in the milk market of Pakistan especially the metropolitan cities are the major markets for the sale of milk. Olper’s milk has targeted people of all ages and genders. And in social classes, they are targeting the upper and middle class families. Strong background of ENGRO Corporation has really strengthened the Olper’s brand by providing the huge investment, its relationship with farmers due to its fertilizer business and use of up to date technology. The Engro Foods Limited is not having its own dairy farms; it largely collects loose milk from farmers through its milk collection centers. The loose milk can not always be pure because all farmers may not provide the pure milk so there are chances that the quality of milk could be low which can effect its reputation. Due to hygiene factors and increasing health consciousness trend has created a lot of demand for processed milk so it’s a huge opportunity for Olper’s milk. Olper’s milk may have a strong background of ENGRO GROUP but still it’s new in the milk industry and is facing an intense competition with Nestle Milk Pack. Therefore Olper’s milk has to maintain its standards and should keep an eye on its cost so that no other (current or new arriving) competitor can acquire even a small chunk of its market share.

Olper’s milk was initially launched in 20 major cities of Pakistan and with its huge product acceptance it is now available in around 80 cities. The aim is to reach all the potential customers all over Pakistan. Olper’s milk (Engro Foods Limited) has already earned a good reputation in the dairy market but they are starving for more and want to become a fast expanding mega food company. They want to fully utilize the rapid growth opportunity available in the market by innovation, differentiation and maintaining standards. After the success of their dairy products, to which their customers testify, Engro Foods now also plans to venture beyond the dairy sector. In this pursuit, grain and fruit markets have been analyzed in great detail.

5

COMPANY DESCRIPTION

COMPANY PROFILE

Engro Corporation

Type Public (KSE)

Industry

Fertilizer

Food

Beverages

Chemicals

Polymer

Power Generation

Petrochemical

Founded

Basic Foundation: 1957 as Esso/Mobil

Joint Venture, Company Incorporated

1965 as Esso Pakistan Fertilizer

Company Limited

Founder(s) Ahmed Dawood

Headquarters Karachi, Pakistan

Area served Pakistan

Key peopleHussain Dawood (Chairman), Asad

Umar (President and CEO)

Products Engro Urea

Engro DAP

Engro Zorawar

Engro Zarkhez

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Zingro

Olper’s

Olwell

Tarang

Omore Ice Cream

Owsum

Olfrute

SABZ

Avanceon

Engro Rupiya Certificate

Revenue PKR 30 Billion

Net income PKR 3,957 Million

Total assets US$1.9 Billion PKR 94 Billion

Total equity PKR 27 Billion

Employees 2,093 (December 2009)

Parent Dawood Group

Website http://www.engro.com

THE ENGRO CORPORATION

Engro Corporation is one of the leading Pakistani business conglomerates with stakes in the

fertilizer, food, power generation, petrochemicals, automation and terminal storage

7

industries. Having had undergone an employee led buy out in 1992 it has expanded

phenomenal in the past two decades.

In the interest of better managing and overseeing businesses of subsidiaries and affiliates

that are currently part of Engro’s capital investments, Engro Chemical Pakistan Limited

converted into a holding company structure. As part of this process, two major changes

occurred with effect from January 1, 2010; Engro Chemical was renamed as Engro

Corporation Limited and it transferred its fertilizer business into a separate wholly owned

subsidiary, Engro Fertilizers Limited.

Currently Engro Corporation’s portfolio consists of seven businesses which include

chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation,

foods, power generation and commodity trade. As a holding company its subsidiaries

include:

Engro Fertilizers Limited

Engro Foods Limited

Avanceon Limited

Engro PowerGen Limited

Engro Polymers and Chemicals Limited

Engro EXIMP Private Limited

Engro Vopak Limited

Beside providing the long term vision for the company and overseeing performance of the

subsidiaries and affiliates, Engro Corporation Limited is also responsible for allocation of

capital, management of talent, leadership development, HR guiding policies, leadership role

in public relations and CSR activities, control structures, legal and IT support.

STOCK TICKER:

Engro Foods Limited is a fully owned Subsidiary of Engro Corporation and is not traded on

the stock market.

AT A GLANCE (as of December 2009):

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Total Employees: 928

Sales Revenue: Rs. 14,900 Million

Investments: Rs. 153 Million

Profit After Tax: Rs. (434) Million

COMMUNITIES:

We stand committed to sustainable business growth and ensure the safety of our people,

assets and community in which we operate. Engro Foods efforts are directed towards

poverty alleviation, environmental safety, and support for livestock sector. Some specific

initiatives include:

Community Empowerment through Livestock Development and Credit (CELDAC)

initiative in partnership with UNDP. Under CELDAC, over 1200 lady livestock

workers have been trained, contributing significantly to the social and economic

empowerment of women in rural areas.

Developing and implementing the concept of Dairy Hub in district Sahiwal, in

partnership with TetraPak. It provides concentrated training and facilities on animal

health, nutrition and fertility, as well as chillers and logistical arrangement, to

increase milk production capacity in a cluster of 20 villages.

COMPANIES:

Engro Foods Supply Chain (Private) Limited

9

DEPARTMENTS

MARKETING:

Consisting of leading marketing professionals of the industry, who are graduates of top

business schools of Pakistan, the Marketing Department ensures that from product

need identification to product development, launch and post-launch, all strategic

decisions are made based on authentic information and research. Identifying the target

markets, effectively communicating to them and building the image of the brands as

well as the Companies, is the job of the professionals running the marketing at Engro

Foods.

MILK PROCUREMENT (Process):

As all of their food products are milk based, the entire Milk Procurement department

plays a critical role in defining the quality of the end product that reaches our

customers. Ensuring regular collection of fresh and pure milk right from the farmer to

the factory and ascertaining the freshness of milk all across the milk procurement

process, is the responsibility of Milk Procurement department, consisting of food

technologists working at the collection centers and veterinary doctors providing service

to the farmers.

MIS:

The MIS department at Engro Foods ensures that all automation is running error-free at all

times. Regularly modifying and updating the Company's accounting software is also the

MIS team's responsibility.

PRODUCTION:

Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art

plant set up near Sukkhar has a processing capacity of more than 300,000 liters of milk

per day, making it one of the largest in the country. Professionally qualified human

resource efficiently works night and day to maintain highest hygiene standards.

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QUALITY ASSURANCE:

Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this

department ensure that highest quality parameters are adhered to through all steps of

production and that the products reach the consumers as per promise.

SUPPLY AND DISTRIBUTION:

This department ensures timely and effective distribution of the products to different

shops and stores spread all across Pakistan. From transportation management to

obtaining route permits and approvals, is done by this department.

ENGRO FOODS - Beginning:

21st century for Engro Corporation has far proved to be the most successful era in the

total life of Engro, from then onwards Engro has only faced success and never looked back,

2003 was the year of the establishment of Engro EXIMP, after which in 2005 Engro

decided to diversify their business more by venturing into the food business by establishing

Engro Foods Limited, which is now experiencing a great success and competing now with

international brands like Nestlé and Wall's Ice Cream

Engro also ventured into the "Power Generation" business by setting up Engro Energy

Limited in 2006, which later on was renamed as "Engro Powergen Limited" in year 2008. It

was established with the basic aim to play Engro's part to tackle the enrgy crisis in the

country.

In year 2007 Engro Asahi polymer divests its share in joint venture with Mitsubishi and the

company renamed as Engro Polymer and Chemicals Limited.

Recently in 2010, keeping in view the immense diversification of Engro Chemical Pakistan

Limited, it was decided to rename the company as Engro Corporation as the holding

company.

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LEADERSHIP:

Engro’s leadership comprises of some of the most enterprising leaders of the corporate

world in Pakistan. These individuals are responsible for conceptualizing and articulating

goals that bring our people together in pursuit of set objectives. They lead the company

with a firm commitment to the values and spirit of Engro. In our journey to become a

profitable, growth-oriented and sustainable company, our management structure has

evolved to create a more transparent and accessible organization.

Hussain Dawood holds the seat of the corporation, Mr. Dawood is also the chairman of

Dawood Group Pakistan

Apart from the chairmanship, Asad Umar currently hold the position of CEO & President at

Engro Corporation from 2004 - present.

OUR CULTURE:

Engro is about the people who are a part of us. Our culture is dynamic and energetic, with

emphasis on our core values and loyalty of our employees. Our work environment

promotes leadership, integrity, teamwork, diversity and excellence.

The tone for our corporate culture and the importance of employees was set after the

Company was bought out by employees in 1991. As the Company grows, we are

determined to keep our culture open and transparent, and inclusive for all our employees.

OUR VALUES:

At Engro, we support our 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 our employees.

Our core values form the basis of everything we do at Engro; from formal decision making

to how we conduct our business to spot awards and recognition. At Engro we never forget

what we stand for. Following are our 12 core values:

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Safety, Health & Environment

Ethics and Integrity

Leadership

Quality and Continuous Improvement

Enthusiastic Pursuit of Profit

External and Community Involvement

Candid and Open Communications

Enjoyment and Fun

Innovation

Individual Growth and Development

Teamwork and Partnership

Diversity and International Focus

ENGRO FOODS LIMITED

Engro Foods Limited is subsidiary of Engro Chemical Pvt. Ltd. which is one of the most

reputed enterprises in Pakistan with more than 40 years of diversified business operations in

the areas of fertilizer and chemicals. Engro Foods started its business operations in March

2006 and with the successful launch of Olper’s Milk, Tarang, Olwell, and Olper’s cream, it

has established itself as a major player in the foods business. Engro Foods has already set

up two processing plants at Sukkur and Sahiwal. With the ever expanding milk collection

network and processing facilities, the Supply Chain has geared us for the growing sales of

our products.

Engro has started milk processing facility to produce and market branded UHT milk, cream

and other milk products. The plant is located in 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

13

day. The plant has been established at a cost of Rs. 1 billion which provides direct

employment to 750 people. it started there operations in March 2006. Engro procure raw

milk supplies from Sindh and lower Punjab. They introduced their milk product with the

name of Olper’s in March 2006.

Engro Foods has entered the Food business through milk processing and sale with the

company’s 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 Limited was officially launched as a fully owned subsidiary of Engro in 2004.

Using dairy as a stepping stone to enter into the food business, the Company has

established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream

production facility in Sahiwal.

Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully

launched under the helm of Company’s dairy products. To support these brands and their

highest standards of quality, Engro Foods has invested heavily in milk processing and milk

collection infrastructure.

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STRATEGIC PLAN

VISION:

Engro Foods’ vision is:

“Elevating Consumer Delight Worldwide”

And the Company aims to generate a significant portion of its revenue from foreign

operations.

MISSION:

“To help farmers maximize their farm product by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in Petrochemicals, Information Technology, Infrastructure and other Agricultural sectors. In pursuing the mission we shall at all time be guided in our conduct and decision making by our Core Values.”

Goals:

Non Financial Goals:

Olper’s milk (Engro Foods Limited) has already earned a good reputation in the dairy

market but they are starving for more and want to become a fast expanding mega food

company. They want to fully utilize the rapid growth opportunity available in the market by

innovation, differentiation and maintaining standards. They want to be an economical

brand. They are now researching to make a combination of good product with less price

then their competitors.

After the success of their dairy products, to which their customers testify, Engro Foods now

also plans to venture beyond the dairy sector. In this pursuit, grain and fruit markets have

been analyzed in great detail.

15

Financial Goal:

Financial goal of Engro foods is to reach 27billion PKR revenues in 2011. In 2010 it was

19 billion PKR. They hope to increase 8 billion PKR approx. in 2011.

Core Competency and Sustainable Competitive Advantage:

In terms of core competency Olpers seeks to achieve unique ability to provide high quality

cream milk and to deliver milk to the customers using manufacturing and distribution

systems.

To translate there core competencies into sustainable competitive advantage, the company

will work closely with key suppliers and distributors to build the relationships necessary to

satisfy high standards of customers.

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SITUATION ANALYSIS

SWOT ANALYSIS:

STRENGTHS:

THE SUBSIDIARY OF ENGRO GROUP:

Olper’s is a brand of ENGRO Group which has helped it a lot in attaining a place in the

food market. The strong financial background of Engro Group has help Olper’s milk to

compete with industry giants like NESTLE and HALEEB.

RELATIONSHIP WITH FARMERS:

ENGRO Fertilizer is also a subsidiary of ENGRO GROUP and has a good market

reputation and relationship with farmers. This has helped a great deal to Olper’s milk for

gathering up milk from the farmers and to strengthen its relationship with farmers.

USE OF LATEST TECHNOLOGY:

Olper's only has the third-generation UHT milk plant in the country. It is the only plant in

Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium

quality and hygiene.

PRODUCT ACCEPTANCE IN THE MARKET:

In the very first year, Engro Foods Limited crossed 1 billion sales figure which shows

customers’ satisfaction upon Olper’s milk.

STRONG MARKET RESEARCH:

In today’s fast growing and heavily competing industry market research has a great

importance. Olper’s has done a good market research which has helped it to find out

consumers’ preferences and to compete industry giants.

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WEAKNESSES:

NO DAIRY FARMS:

The Engro Foods Limited is not having its own dairy farms; it largely collects loose milk

from farmers through its milk collection centers. The loose milk cannot always be pure

because all farmers may not provide the pure milk so there are chances that the quality of

milk could be low which can affect its reputation.

PACKAGING:

Olper’s milk has to depend upon Tetra Pack Packaging as it’s the only option available in

market for packaging. Purchasing packaging material from other company may slow down

its sales (due to non availability of packing material) and also with the rise in price of

packaging material, milk cost may also rise.

MILK COLLECTION & DISTRIBUTION COSTS:

The milk collection centers for Engro Foods are located far apart from the main plant so in

this way cost of collecting milk and bringing it to plant has increased. As more time is

consumed to bring milk from collection centers to plant therefore chance of milk getting

spoiled have increased.

OPPORTUNITIES:

INCREASED FUNDING BY GOVERNMENT

Government has decided to increase farmers’ funding. This is an opportunity for ENGRO

foods because previously due to weather conditions and other reasons there was lots of

wastage of milk but now that can be reduced as farmers will be better able to store milk for

longer time periods.

AWARENESS

Due to hygiene factors and increasing health consciousness trend has created a lot of

demand for processed milk.

18

URBANIZATION TREND:

As day by day urbanization trend is becoming popular and people are moving more towards

cities; it has created a huge opportunity for Olper’s milk to make a mark as most of its

target market belongs to urban areas.

THREATS:

COMPETITION

Olper’s milk may have a strong background of ENGRO GROUP but still it’s new in the

milk industry and is facing a intense competition with Nestle Milk Pack. Therefore Olper’s

milk has to maintain its standards and should keep an eye on its cost so that no other

(current or new arriving) competitor can acquire even a small chunk of its market share.

NEW ARRIVALS:

There is always a threat of new arrival as people are becoming more health conscious so

demand for processed milk is increasing day by day so the market is attractive. Therefore

new companies may enter in to this industry and may acquire some of Olper’s potential

customer.

LAW AND ORDER SITUATION OF PAKISTAN:

Currently the law and order situation of Pakistan is highly uncertain. Anytime there can be

strikes, road blocks and even riots. This can disturb the cycle of Olper’s milk as the loose

milk may not reach plant on time or may be the supply cannot reach to the customers on

time i.e. the fear of shortage or unavailability. This may cause the rise of sale of the

products of other competitors.

INDUSTRY ANALYSIS

UHT MILK:Ultra-high temperature processing, (less often) ultra-heat treatment (both abbreviated

UHT), or ultra-pasteurization is the sterilization of food by heating it for a short time,

around 1–2 seconds, at a temperature exceeding 135°C (275°F), which is the temperature

required to kill spores in milk. The most common UHT product is milk, but the process is

19

also used for fruit juices, cream, soy milk, yogurt, wine, soups, and stews. UHT milk was

invented in the 1960s, and became generally available for consumption in 1970s. High heat

during the UHT process can cause Maillard browning and change the taste and smell of

dairy products.

UHT milk has a typical shelf life of six to nine months, until opened. It can be contrasted

with HTST pasteurization (high temperature/short time), in which the milk is heated to

72°C (161.6°F) for at least 15 seconds.

MILK INDUSTRY OF PAKISTAN:

The milk sector in Pakistan is Huge and that is putting it lightly. According to SMEDA we

produce about 28 billion liters a year and Packaged Milk is just a dent on this number. 92%

to 93% of milk is open milk. Country’s annual milk consumption is around 180,500 tones

including fresh milk. Because of various socio economic factors Packaged Milk is still not

that popular here. It is the potential to see a need in the market and the drive to turn that

need into profit that defines the success of a Good Business and Olper’s saw that need.

Milk is used for drinking, tea, desi ghee, yogurt and butter making. Milk is also used to

make Khoya and different types of sweets. Milk processing companies use milk as a raw

material to formulate different types of milk i.e. pasteurized milk, UHT milk, condensed

milk, skimmed milk, milk powder, etc Different value added products like yogurt, ice

cream, butter and cheese are also produced from the raw milk. The demand for processed

milk has increased its share in quality conscious consumers. During the last two decades,

processed milk has achieved a good share in the milk market of Pakistan especially the

metropolitan cities are the major markets for the sale of milk.

The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which

pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural

areas across Punjab, processing the milk through UHT (Ultra-High Temperature

Processing) treatment, and selling it to consumers in uniquely colored triangular and

rectangular packs designed to prolong the milk’s quality. Milk Pak’s “Milk Packs” were

very well-received and the brand soon became synonymous with quality milk. Its first real

competition came in the form of Haleeb, which introduced distinctively blue tetra packs to

the market in 1986.

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Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the

dairy market in the world’s fourth largest milk producing country for nearly two decades—

without any real sustained competition. Engro Foods, in contrast, had only recently been

established by Engro—a traditional giant in Pakistan's chemical and fertilizer industry.

Branding experts could not imagine how Olper’s could distance itself from its parent

company’s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end

of 2006, sales for Olper’s Milk had reached Rs.1 billion (approximately US$ 15 million)

and in 2008, the brand has a market share of close to 22 percent—second only to Milk Pak

(estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the

multi-billion rupee packaged milk category meant business.

Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's

marketplace. By 2006, the dairy milk category was

growing at 20 percent annually, and 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.

OLPER’S ENTRANCE IN MILK INDUSTRY OF PAKISTAN:

Olper’s, however, stepped into the foray by launching a massive campaign that started off

with an introductory slice-of-life television commercial featuring some of the biggest stars

in Pakistan. Billboards went up at key locations in the major cities, and soon the brand had

become a voice above the media clutter—a voice that differentiated Olper's brand from the

others.

21

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.” The name itself

made it sound like a foreign brand, giving the perception of quality, and was unlike

anything previously experienced by Pakistani

consumers. Rafey continues, “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.”

To a large extent, they were successful. “It

was certainly a campaign with its own unique

identity,” says Farah Jamaluddin, a media

professional. “All of their communication was

aesthetically on the mark and had a sense of

synergy about it,” she explains.

Olper’s went with red as its color—a color far removed from the greens and blues that had

become synonymous with packaged milk. “Picking red as the brand color was by far an

inspired choice,” says Zara Shaheen, an Olper’s customer. “It created a whole new

perceptual niche for Olper’s,” she adds. The color also helped to enhance the in-store

visibility and presence for Olper’s packaged milk, and the brand was instantly disassociated

from its competition.

The brand also worked to ensure it 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 across various media outlets. Rafey

explains the choices behind promoting the brand attributes, “We are big believers in the

primary tenet of marketing: getting to know your consumers through research.” He

continues, “For Olper’s, everything from the color and the packaging, to the recipe and the

name, was thoroughly consumer tested.”

The campaign highlighted and expanded upon the various occasions in which milk could,

and should, be enjoyed—and kept driving home that message through its various

promotions. Olper’s became the "All Purpose Milk" and could be consumed with breakfast

22

or blended with tea (arguably the most popular beverage for the masses in Pakistan), and

appreciated by all members of the family. Engro Foods utilized a dynamic campaign, and

during Ramazan (the Muslim month of fasting), molded its message to talk about the "All

Purpose" nature of their brand during both Iftaar (breaking of the fast at dusk) and Sehree

(pre-dawn food before the fast). “We are aiming to own the religious month and our special

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,” Rafey points out.

Other avenues of BTL (Below The Line—brochures, flyers, etc.) have also contributed to

the brand’s success. The World of Olper’s, for example, involves reaching out to the

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,” says

Rafey. “We are in our third year, and so far we have had close to 350,000 contacts,” he

adds with pride. The Olper’s Consumer Relationship Party is another ongoing BTL based

program, which intends to create and maintain loyalty amongst the brand’s users.

In its launch, Engro Foods has made a conscious and concerted effort to distance its milk

brand from its parent company’s chemical and fertilizer roots to ensure that no negative

connotations or cross-pollination of brand identities were manifested in the minds of

consumers. Interestingly though, the company has been able to use Engro’s historical

equity with rural farmers positively toward growing its milk collection network in the

provinces of Sindh and Punjab.

“Our milk collection network has grown exponentially post launch,” says Rafey. “So much

so that we reached our supply capacity within six months and had to begin using a second

UHT plant within three months,” he adds. Today, Engro Foods aims to become the only

company to utilize all of the milk collecting areas in Pakistan and also plans on developing

the biggest dairy farm in the country. The company’s reputation as a local giant actively

involved with community welfare in remote areas has also been a positive add-on for Engro

Foods.

Evidently, Olper’s has woken up the competition. Milk Pak responded with campaigns of

its own to reaffirm the positive equity of its brand and has largely focused on a message of

23

health, vitality, and strength through quality milk. Haleeb implemented a response as well.

Despite dwindling market share, Haleeb increased its marketing in the media and

commitment to promoting its brand. Also, newcomers such as the generically-named Good

Milk and Pakola Milk have tried penetrate the market, but without much success. Rafey

comments on the increasingly competitive landscape, “Olper’s is very strong in terms of

consumer quality perception… our monthly blind taste tests show that consumers rate

Olper’s significantly higher than Milk Pak and Haleeb.”

With Olper’s, Engro Foods has established a strong regional presence and intends to

increase that footprint over the next few years. Within the dairy market, the FMCG (Fast

Moving Consumer Goods) company now has a diverse portfolio of products ranging from

different types of cream to premium low fat milk, and its future appears promising—as long

as Olper's continues to understand its consumers and follow through on that knowledge.

Rafey underscores the company’s direction for the brand: “When we launched, we wanted

to be the market leader in five years.” Given that the brand is considered one of the fastest

growing FMCG brands in Pakistan, it could well be achieved.

COMPETITOR ANALYSIS

MAJOR COMPETITORS:There are three main competitors of Olper’s milk which are as follows:

Nestle Milk Pack

Haleeb Milk

Good Milk

NESTLE MILK PACK:MILKPAK is standardized UHT milk that benefits from NESTLÉ’s expertise in bringing

you the very best in health, wellness and nutrition.

MILKPAK is a trusted brand known throughout the

country for its nutritious wholesome goodness and

pure natural taste. To secure a happier and healthier

future for your family, you need the support of a

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strong partner like MILKPAK, now fortified with extra strength of Iron, Vitamin C and

Vitamin A that keeps you and your family strong!

Iron as an essential mineral helps in the formation of healthy blood and strengthens your

immune system. Vitamin C helps the absorption of Iron in the body and Vitamin A is

important for clear vision.

The addition of Iron and Vitamins has enhanced the nutritional value of MILKPAK while

retaining the same delicious taste. One glass of MILKPAK fulfills 20% Iron, 41% Calcium,

18% Vitamin A and 20% Vitamin C of your daily requirements as per Nutritional

Reference Values, CODEX Alimentarius.

HALEEB MILK:

Haleeb is also a well known brand name for UHT milk. Haleeb is

Pasteurized, Standardized, and Homogenized and Ultra Heat Treated milk

of the highest standards. Haleeb is available all over the country in 1 Liter,

500 ml and 250 ml Tetra Packs. When you buy Haleeb you can be assured

of the best quality milk money can buy. Haleeb is standardized to 3.5%

Butter Fats and 8.9% SNF (Solids Non Fat) as prescribed by Pakistan

Pure Food Laws. It is the thickest milk in Pakistan.

GOOD MILK:

Shakarganj Food Products has developed an elaborate system of

collecting milk directly from the farmers on a daily basis, ensuring

freshness of the product.  This process ensures zero microbial activation,

while preserving maximum flavor, taste, and nutritional value without

the use of any preservatives. The product, good milk is standardized at

3.5% fat and 8.9% SNF, and has a shelf life of 90 days without

refrigeration. It comes in convenient 1,000ml, 500ml and 250ml Tetra

Brik packing.

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Market Share:

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MARKET PRODUCT FOCUS

They will do the market segmentation in order to properly understand and know the target

customers of Olper’s milk.

SEGMENTATION

DEMOGRAPHIC SEGMENTATION:

Demographic segmentation means the segmentation on the basis of age, gender and income

level etc.

Income level is the level by which our social classes are determined. Like lower class,

middle class or upper class.

Olper’s milk has targeted people of all ages and genders. And in social classes, they are

targeting the upper and middle class families. The lower class families can not be the target

market of Olper’s milk due to the affordability issue. In this case lower class is the labor

class whose monthly income is around less then PKR 10,000.

Lower class a class of people in a society characterized by low income, low level of

education, high unemployment and, as a result of these, a low social status

PSYCHOGRAPHIC SEGMENTATION:

Psychographic segmentation means the segmentation on the basis of personality traits,

lifestyles, interests, opinions etc.

Life style is a manner of living that reflects the person's values and attitudes.

An opinion is a subjective statement or thought about an issue or topic.

Olper’s milk has targeted people who are goal oriented and focused on their careers and

those who are conscious about their own health and health of their families.

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BEHAVIORAL SEGMENTATION:

Behavioral segmentation means the segmentation on the basis of benefit sought, purchase

occasion and loyalty status etc.

Olper’s milk is used by its customers for all purposes for example to drink, make tea, butter

etc There are also loyal customers who always purchase the same brand and some are the

less loyal users who seek variety. Some customers are heavy users and they use it to make

tea , to make butter and to drink everyday and some use Olper’s milk only for tea etc

POSITIONING

Olper’s milk has been positioned as all purpose milk for those who love life and who are

ambitious and want to live a healthy life.

Here are the tag lines for Olper’s milk:

“Jo Dil Khol Kay Jeetay Hain – Unhee Kay Liye Hai Olper’s”

&

Suba-Bakhair Zindgi – Good Morning Life

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MARKETING PROGRAM

The four marketing mix elements of Olpers marketing program are detailed below.

PRODUCT:

Olper’s UHT Milk

Olper’s milk is Engro foods’ standardized and homogenized pure UHT (Ultra heat treated)

milk with 3.5 % fat and 8.9 % solid non-fats. It is a premier brand, and the choice of

quality-conscious consumers who only go for the best. It is available in easy-to-open, 6-

layered Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life. Olpers

is enriched with cream as well.

PRICE:

Product Detail Price

Olper’s milk [ ¼ Liter] 20

Olper’s milk [½ Liter] 38

Olper’s milk [ 1 Liter] 70

Olper’s milk [1½ Liter] XL 98

PLACE:

Olper’s milk was initially launched in 20 major cities of Pakistan and with its huge product

acceptance it is now available in around 80 cities. The aim is to reach all the potential

customers all over Pakistan.

PROMOTION:

Olper’s milk has been properly advertised by using different modes of promotion which has

helped a lot in creating product awareness. As the competition was tough in the market

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therefore proper and aggressive promotion strategy was the need. The milk has been

advertised through print media (newspapers, brochures) TV ads, Radio ads, and Billboards

etc.

PACKAGING:

Olper’s milk is using Tetra Pack packaging in attractive colors especially red, blue and

white in the following sizes:

Product Detail Price Packaging

Olper’s milk [ ¼ Liter] 20 27 packs per shrink-wrapped tray

Olper’s milk [½ Liter] 38 12 packs per shrink-wrapped tray

Olper’s milk [ 1 Liter] 70 12 packs per carton

Olper’s milk [ 1½ Liter] 98 6 packs per carton

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IMPLEMENTATION PLAN

Olpers has just launched Olpers Milk in [ 1½ Liter] XL size. None of their competitors has

launched milk in this size till date. Olpers is the only UHT treated Milk provider who has

launched XL [ 1½ Liter] size for their customers. Because most of population of Pakistan

belongs to middle class so due to rapid change in the prices of almost everything in

Pakistan the customers now spend less in order to meet their needs. Olpers felt that change

of consumption pattern of the consumers and they introduced a quite cheaper milk pack in

order to satisfy their consumer needs. The price of [ 1½ Liter] Olpers Milk is much lesser.

So they felt a need and they fulfilled it.

Targeted market is the middle class people of Pakistan with monthly income around 25,000

to 40,000. Due to rapid up lift of the prices no one has been able to buy everything they

want so they now have started spending less on everything. So introducing [ 1½ Liter] XL

size milk is a very good idea as it caters many problems faced by the customers.

EVALAUATION & CONROL

Control system for this project is the same for other dairy products. They make a sales sheet

in order to see the sales of XL size olpers with the other sizes of olpers. Olpers has

distributors’ hired for this project. They have divided distributors on the basis of efficiency

of the distributor. Monthly sales targets have been given. This depends on distributors’

infrastructure, efficiency, experience, business knowledge. City has been divided into areas

and management has decided how many distributors are going to be hired for a particular

area. After distributors are hired a company representative checks on all the distributors

randomly to see if there are operating as they were directed. It’s a random check every

week. So definitely a check is there on the distributors. They have been keeping a close eye

on this project and so far it is going very good.

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REFERENCES

http://www.engro.comhttp://www.engro.com/our-businesses/engro-foods-limited/http://en.wikipedia.org/wiki/Engro_Corporationhttp://www.brandchannel.com/features_effect.asp?pf_id=445http://en.wikipedia.org/wiki/Ultra-high-temperature_processinghttp://pakmediablog.net/110/and-then-there-was-Olper’s/http://www.nestle.pk/brands/nestle-milkpak.aspxhttp://www.angelfire.com/biz7/chexports/haleeb_milk.htmhttp://viewstonews.com/index.php/pakistan-milk-to-be-exported-to-the-world/uncategorized

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APPENDIX

Altaf AhmedZonal Sales Operation OfficerCell# 03015475855Email: soocentralzone@engro.comAddress: Engro Foods Limited10-C Model Town Lahore, Pakistan

M Faysal IshratArea Sales ManagerCell# 03008118960Address: Engro Foods Limited10-C Model Town Lahore, Pakistan

Fraz Ahmed AbbasiBranch Activation ManagerCell# 03018560503Email: faabbasi@engro.comAddress: Engro Foods Limited10-C Model Town Lahore, Pakistan

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