Nestle Management free essay sample

Firstly we would thank Allah for giving us the opportunity and the resources to be able to do something productive with our lives. Without His blessings we would not have been able to come as far as we have. Then our sincere thanks to Miss Naima khurshid for helping us throughout this project. His guidelines have been very useful for us in preparing this project. He helped us find new ways of being innovative and creative. This project would not have been possible without her cooperation and continuous direction. Last but not the least we would like to thank our families for their incessant support and approval. . Introduction 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 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. 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. Vision Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, to eventually become global. 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 Departments 1. Administration Efficient management of all administrative affairs of Engro Foods (Pvt. ) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly. 2. Finance and Accounts The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies pockets is properly documented and audited. 3. Human Resource The Human Resource department at Engro Foods (Pvt. ) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods. . 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 Companie s, is the job of the professionals running the marketing at Engro Foods. 5. Milk Procurement As all of our 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. 6. MIS The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Companys accounting software is also the MIS teams responsibility. 7. 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. . 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. 9. Supply and Distribution This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transporta tion management to obtaining route permits and approvals, is done by this department 2. Objectives and issues In the recent few months, it seemed that everywhere one looked, there was either a billboard, a TVC or a radio jingle promoting a brand of milk – whether it was Haleeb, Nurpur, Pakola, Nirala, or, recently, Olper’s. But perhaps this isn’t surprising after all. Pakistan, according to recent statistics, is the third largest milk producing country in the world (32 billion liters per year from 50 million animals, with urban consumption at nearly seven billion liters). However, despite this high ranking, packaged milk, even according to the most optimistic estimates, has a mere four percent penetration. No wonder then that processed milk companies (PLMCs) have been rather aggressive in their advertising and marketing endeavors in an attempt to increase the penetration. Industry experts believe that the current economic turnaround has contributed to the growth in the PLM sector, resulting in increased consumer purchasing power. Another reason for growth is a growing awareness pertaining to health and hygiene; this factor, coupled with increasing dissatisfaction with loose milk, has also contributed to growth in this sector. However, in order to make a noticeable increase in penetration, many challenges and perceptions still have to be overcome by the PLMCs. The least important one, perhaps, is tradition. Milk, even amongst the most urbanized consumers, is synonymous with the early arrival of the doodhwala (milkman) at their home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression that the milk is fresh, natural and straight from the cow. And it is this perception that only loose milk is fresh, and therefore healthy and preservative-free, that has to be overcome, if increased penetration is to occur at a substantial rate. Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab, because most dairy farms are based there, loose milk is cheap at approximately Rs 24 per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh, however, the price differential between loose (Rs 28) and processed milk (Rs 38) is only Rs 10. Though hurdles such as consumer perceptions and price differentials have still to be overcome, the processed liquid milk market looks set to grow. There is a whole world out there to be converted, and it is a huge opportunity for PLMCs. If the economy remains stable for the next five years, penetration will increase at an amazing rate. 3. Executive summary This project is about the marketing plan of Olper’s from the time when ENGRO foods came up with the idea of adding a new product line to their already well established and long set of product lines to the point that they are still heavily promoting their product. We start by giving a brief history about Olper’s and how it came into existence. We talk about the corporate structure and organizational hierarchy of ENGRO Fertilizers, its mission statement and the vision. We move further with its goals that it has thought about for Olper’s and eventually the type of organizational culture of the organization. We discuss the types of marketing research conducted by the company before introducing it to the market and how they have segmented its target market and positioned the product in the minds of the consumers. We discuss the SWOT analysis in which we talk about the strengths, weaknesses, opportunities, and threats the organization is facing since its product was launched. Then the PEST analysis is generally about how the external factors affect the growth and stability of the product. We move further to talk about a variety of marketing strategies employed at different stages of the product life cycle, that is promoting the product and making consumers aware of Olper’s using the 4 P’s to the best of their abilities. The report also confers about the role brand equity played in increasing the sales for Olper’s. Firstly, there are the various ways employed by the brand managers to build and measure brand equity and once the customers start to accept it then how they have managed the brand equity of Olper’s. We conclude the report by discussing the social responsibilities in which ENGRO Fertilizers is involved and the future plans of the organization for Olper’s. 4. Situation analysis A. Market summary Psychographic segmentation On the basis of psychographics, factors such as personality traits, lifestyles and values, the marketers at Olper’s have segmented the market more towards achievers who are goal-oriented and focused on their careers, and experience those who are seeking variety in the milk sector. For example the ads for Olwell mostly show achievers who want to be successful, have high aims and are already doing quite well in their concerned fields. The Olper’s products have targeted experiences because the company has given them a new set of brand and so many will make their first purchase because they want to try something new. Olper’s ads also target believers, traditional conservative people with concrete beliefs. The ads for Olper’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more. Behavioral segmentation Olper’s products have been segmented on the basis of benefits that consumers seek in the milk. In this case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well to feed the animals. The ads also show that consumers should increase their milk consumption for example with every tea they should use Olper’s, every morning they should drink Olper’s and everyday they should feed their pets with Olper’s milk. There may be some hard core loyal in the milk sector. Loyalty maybe towards such established brands as Nestle and Haleeb. There might even be switchers and shifting loyal in the milk sectors that are either price sensitive or want variety. As a result, the marketers need to find ways to make the hard core loyal attracted to the Olper’s brand and shifting loyal and switchers to convert into hard core loyal as well. Market needs †¢It is the first brand which provides all characteristics of complete milk. †¢ Olper’s milk provides a variety in weights. †¢Olper’s milk offers a best composition of ingredients to their target market. †¢Company offers its product at comparative price. †¢Olper’s milk provides multi purpose milk for the cosumers. It can be used for making tea, milk shake, and for the drinking purpose and many more. Market trends: Diet Nutrition †¢Diet and nutrition are fundamental to health throughout life. A good diet can help reduce the risk of a number of health problems including obesity, heart disease, some cancers and type-2 diabete s. †¢ Whenever we are on a diet, we try to ensure that we do not consume many calories. †¢People of Pakistan are getting more and more health conscious due to more awareness about health and food. †¢Doctors recommend fat free milk to the high cholesterol, diabetes patient. And olper’s knows about the problems oe people and give the solution in the shape of olper’s milk. Market growth Olper’s management might consider possibilities for market development identifying and developing new market for its current product. Managers could review new demographic markets for its current products. Managers also could review new graphical markets. Olper’s management could consider product development offering new product to the current market for example, olper’s offer new products like tarang for tea making purpose and olwell a high calory low fat milk, and olper’s cream. B. SWOT Analysis Strengths 1. Engro’s back Olper’s is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT and infrastructure business. The brand is well known so customers will automatically have a brand association with Olper’s and see it as a premium quality product. ENGRO is world renowned so it can easily attract foreign investors in backing it against other competitors such as Nestle. ENGRO foods can easily afford research and development costs for Olper’s have in order to introduce new products. It can also distribute the brand through better channels because of its long term relationship with distributors in the agriculture sector. 2. PR with farmers ENGRO has been interacting with the farmers for fertilizers and has gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company. This is an added advantage and strength for the company because it will never be short of milk production. The farmers also won’t have to look elsewhere to sell their milk. 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. 5. Strong consumer product research Olper’s done a strong consumer product research before and after launching the product. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry. To develop its future portfolios, EFL has hired various global research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies. 6. Third-Generation Plant EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene. Moreover, it is also setting up another milk processing plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million). Weaknesses 1. Olwell TVC Olwell ad which is based on Western life style, ENGRO foods brand management showed a man who put off his clothes remain just in his undergarments, or half nude lady in a cat walk or men admiring the figures of a lady in mix gender health club. In this ad they are creating associations with the brand through the stripes, which is a highlight of Olwell packaging. Half naked people have been shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell. Also, the talent, situations and locations connects well with the ad to give Olwell a premium positioning. The brilliant marketing people at ENGRO Foods failed to analyze is that the market they are targeted the ad on, is Pakistan, where practicing Muslims reside, who have strong religious beliefs. When making the ad, the brand managers were focused on, making an ad that should give the brand the most premium look and feel amongst the target consumers but on the other hand they were least bothered about the ethics, religious beliefs and cultural values. 2. Owning Red Color The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a blue carton etc. This may create problems because when a consumer enters a grocery shop, then he/she might have problems in recalling the brand because there is no color association attached to Olper’s. The company may need to find a suitable color in which to focus its upcoming marketing strategies. 3. Low Quality Milk EFL is not having its own dairy farms; it largely collects loose milk from farmers gwalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices. . Packaging EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Olper’s for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs. 5. Milk collection distribution costs EFL’s 34 out of 40 milk-collection centers are located in Punjab, whereas it s only milk processing facility is situated near Sukkhur (Sindh). It increases the milk collection Distribution costs; and also increases the chances of milk getting spoiled because of increased traveling time. 6. Narrow brand portfolio It has been more than a year now, when EFL launched its first dairy product, Olper’s Milk on March20, 2006. But EFL’s brand portfolio still consists of just 3 products i. e. Olper’s Milk, Olwell Milk and Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a much diversified line of dairy products. Opportunities 1. 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. 2. Increased consumption of PLM Competition may create opportunities for the company because each competitor in the milk industry wants to increase penetration of processed liquid milk and so they will create awareness for consumers through different advertising media. This will ensure the increase in the consumption of processed milk instead of lose milk and so will in turn lead to increase in sales for the company. Therefore there will be an opportunity for accelerated growth. 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 is the Third largest producer of milk in the world with a total production of 32 billion liter of milk a year, whose value is more than that of the combined value of wheat and cotton, from a total herd size of 50 illion milk animals (buffaloes and cows). Livestock accounts for 46. 8 percent of agricultural value added and about 10. 8 percent of the GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. Due to the steps taken by the government and private sector, country’s annual milk production is expec ted to grow at an additional 3 billion liters 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. 5. Improving Economy Threats 1. Competition Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitors. For Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality. Competition seems to be getting tougher as a result of new players entering the dairy market. 2. 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 and fulfills its conformance quality that is the company meets its promised specifications. Consumer’s preferences change with time and prices might create certain barriers in terms of the profit margins for Olper’s. For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk. C. Competition overview Following are the main existing competitors of the olper’s Nestle The main competitor of the olper’s is Nestle milk. Nestle is one of the leading companies in the world. It has very strong brands all over the world. Its advertisement and promotion strategies are very strong. So it is a big threat for the olper’s. It has also a very big product line. And it is a very stable and renown company. It also has a tea making brand named EVERY DAY. Haleeb It is the other competitor of the olper’s in the market. It is also a very stable and popular brand in the market. It is very establish and old brand as it is one of the pioneers of the tetra pak milk industry. Its market share is very large and most of the customers are brand loyal of it. Its distribution channel network is also very large. Good milk Another new competitor or the olper’s in the market is good milk. Its promotion and the advertisement strategies are very good. As it is a new product in the market so it does not have such a big problem as compare to nestle and haleeb. Indirect competitors There are indirect competitors also there like the milk mans in the cities and the local bakeries in the city which are producing the milk and the milk products. Like GOURMET in Lahore. D. Distribution channel overview According to Mr. Ali Akbar, Director Marketing EFL, â€Å"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. Having kicked off simultaneously in 20 cities across 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 national and international level. Engro Foods Limited has its own dales and distribution network. EFL has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan. 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. E. Environmental factors When the rate of change inside the company is exceeded by the rate of change outside the company, the end is near. † Political/Legal Factors In year 2005, the Ministry of Industries and Production established Dairy Pakistan Company on the lines and model of Dairy Australia. The main objectives of the company are as under: a. To promote milk and other value added dairy products i n the domestic as well as international markets. b. To promote development and up-gradation of dairy supply chain in Pakistan by supporting and facilitating the farmers, processors and other stakeholders across the value chain. . To support dairy sector growth by way of supporting and facilitating business development services for the enterprises across the dairy value chain. d. To initiate and support interventions across the dairy value chain to enhance sector competitiveness through innovations and research. e. To promote technology development, transfer, assimilation, streamlining, acquiring and/or up-gradation across dairy value chain by undertaking new initiatives. f. To help introduce international best management practices for better productivity and operational efficiencies. g. To promote training and skills development of human resources associated with the dairy sector. h. To help create enabling/supporting/conducive business environment for enterprises operating in the dairy sector and propose new rules/regulations/bye- laws/standards for providing a level playing field and conducive regulatory environment for the development of sector and propose amendments thereof in any existing rules/regulations/bye-laws/standard in the sector and bring local industry in consonance with international standards. Economic Factors Inflation rate of Pakistan for the current fiscal year has grown to 7 percent. This thing is really hurting the purchasing power of Pakistani consumers. PLM which is already considered as more costly compared to open milk is becoming out of reach of general public. As a result, there is an increased pressure on PLM companies to either decrease Their prices or at least keep prices stable. Moreover, packaged milk industry which each year pays millions of taxes is not being given any relief in terms of taxes by the government. Competition is also increasing with the entrance of new domestic players in the dairy and food sector and plans to increase investments by the already established companies. Nirala, good milk, Pakola are the few names which have recently introduced their dairy product lines in the market. Major textile groups are also diversifying into dairy and livestock business and some of them have even acquired lands to start their business. Leading industrial groups such as Jamal Din Wali Sugar Mills, Dewan Group of Industries and Shakar Ganj Sugar Mills have already made substantial investments in dairy livestock sectors. In March this year, Nestle Pakistan opened a state-of-the-art milk processing facility in Kabirwala, Punjab. The plant, Nestle’s largest milk reception facility in the world has a processing capacity of 2 million liters of milk per day. Socio-Cultural Factors In order to make a noticeable increase in penetration, many challenges and perceptions still have to be overcome by the PLMCs. The least important one, perhaps, is tradition. Milk, even amongst the most urbanized consumers, is synonymous with the early arrival of the doodhwala (milkman) at their home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression that the milk is fresh, natural and straight from the cow. And it is this perception that only loose milk is fresh, and therefore healthy and preservative-free, that has to be overcome, if increased penetration is to occur at a substantial rate. Over the years, all PLMCs, but especially the two older players, Nestle and Haleeb, as well as Tetra Pak (the company that packages the processed milk) have been making active efforts to convince loose milk users to switch to processed milk. In the last six years, Tetra Pak has launched three major campaigns aimed at changing consumer perceptions. Last year, Tetra Pak’s third campaign, Wohi Dhoodh Aur Kya? Milk, What Else? ) Addressed the misconception that processed and packaged milk has preservatives. The campaign talked about the benefits of Tetra Pak’s six-layered packaging material and innovative technology that keeps milk safe for a long time. The highlight of the campaign was the introduction of a buffalo character called, Moomoo, who explained why UHT milk stays safe and hygiene for a long time in a Tetra Pak carton. Despite these marketing endeavors, perceptions cannot change overnight; this requires patience and continuous investment to educate consumers on the benefits of packaged milk. Every product’s lifecycle consists of an introductory phase, growth phase and maturity phase. It takes time to change attitudes, especially in a culture where the concept of fresh milk is healthier option. Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab, because most dairy farms are based there, loose milk is cheap at approximately Rs 20 per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh, however, the price differential between loose (Rs 28) and processed milk (Rs 38) is only Rs 10. As a result of price considerations, most PLMCs have not increased prices in the last 5 years. Moreover, Nestle and Haleeb have introduced smaller packages to cater to consumers with limited cash flows, although there is a convenience factor at play here as well. Technological Factors Different initiatives taken by the company, so far, to bring about a White Revolution in the country are: a) Farm Cooling Tanks Loan Scheme A mechanism for the operation of Farm Cooling Tank Loan Scheme has been proposed and guidelines are being developed for applicants. They will include standards for quality and hygiene for installation of the tanks and also details on the testing of the milk being received for composition and quality. b) Model Farms The targets for this project are to establish 50 farms by the end of June 2006 and 100 by the end of 2006. An Australian consultant is currently visiting Pakistan for this purpose. First 14 farms in Okara, Punjab have been formally established as model farms. These farms are generally of medium size and all supply to Nestle. One model farm has been established in Sindh. Efforts have been made to identify clusters of farms to be established as model farms at stage two. It is proposed to work with one group of small farmers who are currently part of Idara-e-Kissan / Halla and a further group of farmers in Sindh who currently supply to Engro. In stage three, it is proposed to identify further farms with probable extension of the programmed to NWFP. c) Other Policy Interventions Draft Quality Standards are being worked on by a SWOG group who has provided the first draft paper for discussion with stakeholders. It is necessary to open a dialogue with PSQCA, PSI and other interested parties to progress the stablishment of Food Safety Standards. Work is also being undertaken to establish a case for zero rating Dairy Products for sales tax. 5. Marketing strategies. Positioning the brand Positioning involves designing the product and image that will occupy a distinctive place in the minds of the target market. As can be seen, nestle milkpak and Haleeb have th e largest profit margins and market share in the milk industry. Thus the marketers at Olper’s have decided to create its own unique image and then strengthen the position in the customers’ minds. They have done this by taking a number of following steps: 1. Packaging of Olper’s milk and Olwell in red color and Olper’s cream packed in purple color are quite different and distinctive from the typical green and blue packing used by other competitors. 2. 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, â€Å"jo dil khol kay jeetay hain unheen kay liyay hai Olper’s† Olper’s always tries to create customer intimacy that is it focuses on satisfying the customers’ unmet needs. Processed milk is seen as less lacking all the nutrition’s that is part of milk due to passing through so many processes. But Olper’s positions itself as milk that has not lost its nutrients. The unique selling proposition for Olper’s is: Subah Bakhair Zindagi, but recently the company changed the USP to: Jo dil khol kay jeetay hain unheen kay liyay hai Olper’s. Both the tag lines have a very positive impact on Olper’s image because of the emotions involved in both the lines. The marketers have used different positioning for Olper’s products: a. They have used the attribute positioning for Olper’s milk. The main theme of the product is that it is meant for all purposes without any user imagery. Olper’s ads also show attributes of milk such as good for health. b. They used the benefit positioning for Olwell. The product is positioned as delivering the benefit of helping to reduce weight and for healthy bones. c. Olper’s cream is positioned as good for a specific use or application. In this case the cream can be used to make cake icings and desserts look great. It can be said that all the different stages have been performed by the marketers with extreme care and research. 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. % fat and 8. 9 % solid non-fats. It is EFL’s 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. Shipping Units 1 Liter (1000 ml ) : 12 packs per carton ? Liter (500 ml) : 12 packs per shrink-wrapped tray ? Liter (250 ml) : 27 packs per shrink-wrapped tray Olper’s Cream The premium cream processed hygienically from pure fresh milk, Olper’s Cream is luxuriously rich in its thickness nutritional value. It promises the richest scrumptious assortment of tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc. It was launched on September, 2006 and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months shelf life. Shipping Units ? Liter (250 ml) : 27 packs per shrink-wrapped tray Olwell Hi-Cal Lo-Fat (HCFL) Milk Launched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the richness of pure milk. It is an ideal choice for weight-watchers and heart patients. It is also high in calcium content, which prevents osteoporosis. Packed in 6-layered Tetra Pak Brick Aseptic red packaging with easy-to-open plastic cap, it comes with a 3 months shelf life. Shipping Units 1 Liter (1000 ml ) : 12 packs per carton ? Liter (500 ml) : 12 packs per shrink-wrapped tray 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. Olper’s Milk Olper’s Cream Olwell Hi-Cal Lo-Fat (HFCL) Milk Promotion Advertising Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is concerned, with TVCs, print ads, radio commercials, billboards and plenty of BTL (below the line) activities including direct consumer and shop branding activities. Due to this aggressive marketing campaign, the competition seems to be getting tougher. This can be gauged from the fact that Nestle re-launched its product packaging and marketing campaign just before Olper’s launch. One can also a far greater number of milk advertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle. Olper’s Milk Media mix for Olper’s milk includes TV, print, outdoor, radio BTL activities. Olper’s considers radio still an effective medium because A B house wives still listen to the radio on a daily basis. Post Mortem Graphics of the ad are excellent except the body copy which is quiet overloaded with information. TVC however, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only 3 seconds of branding! This type of advertising has never been practiced in Pakistan. Using celebrities like Shan is not a good option as he has already developed his association with Mobilink. But overall Olper’s has done a great job in designing and executing its ad campaign. Olper’s Cream Post Mortem Color is soothing, caption is great. But the picture of the pastry is not attractive at all, the cream is barely there. It should be mouth watering picture of a desert with lots and lots of cream on top. Lifes a dessert is a boring statement. If you are a creative team, you can for sure come up with something new and fun! Olwell Hi-Cal Lo-Fat (HCFL) Milk Post Mortem The brand is positioned rather too narrowly towards SEC A. Nestle’s NesVita and Calcilock campaign was closer to a normal Pakistani consumer. Secondly, there are certain boundaries and cultural values that should be respected. Olwell ad is too much for me to digest and I have no options but to switch the channel. Engro has over done it and to make things worse it’s not as clear and well communicated as NesVita was. Segmenting and targeting the market for Olper’s It is difficult for any one company to engage in mass production, mass distribution and mass promotion for its product. The complexities arise from the proliferation of advertising and distribution channels and the high costs associated with reaching a mass audience. Therefore, companies segment the market so that they can target the group of customers who share similar needs and wants. The milk sector shows a market that has homogeneous preferences that is the consumers have similar preferences. They want milk to be white, carefully processed, and good for health and bones. Keeping these things in mind Olper’s market has been segmented. The marketers at Olper’s have had a number of options available to them when segmenting the market for their products. So far company has introduced three new products: Olper’s milk, Olwell diet milk and Olper’s cream. 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. Even though the brand calls for a small percentage of an individual’s income but lower class wouldn’t want to buy the brand maybe because they are price sensitive or because they believe lose milk is better than processed milk and has all the nutrients that the processed milk lacks. However all the companies in the milk sector are trying to change the image of processed milk as non-nutritionist milk? Therefore it can be said that Olper’s has been positioned as a brand for high income earners. Due to the income factor involved it can be said that Olper’s milk target a specific social class who are health conscious and concerned about their weight. Marketing Research conducted by ENGRO Foods Marketing research is an important step when a new product is to be launched into the market. There are many risks associated with that new product and especially when a company decides to diversify into a completely new market that it was not previously catering to. Thus in order to reduce the magnitude of the risks and to be successful, large organizations with a research and development department conducts the marketing research. Even those organizations that do not have a RD department can conduct marketing research through other companies that are providing the facility of marketing research. One such company is A. C Nielson that carried out the marketing research for ENGRO foods when the idea of diversifying into a new market was introduced. Marketing research is the systematic design, collection, analysis and reporting of data to the relevant parties. ENGRO wanted to setup a new fertilization plant but due to certain Constraints from the government weren’t able to do so Therefore, the organization decided to move into a new market. They came up with several options including telecommunications and power plant but they found out that the food industry held the greatest promise. It was an exploratory research that is the main goal was to shed light on the real nature of the problem in this case, diversification into a new market, and to select possible new solutions and ideas such as the food industry. They also went though the list of at least 1,200 names before they decided to introduce Olper’s. Olper’s is promoted as the milk for all-purposes. The reason for this is that while conducting research, they found out that people want milk that could be used for all purposes such as drinking, tea whiteners etc. Once the brand was introduced the organization wanted to add more product lines to it. Therefore they conducted another marketing research to find out the success of Olper’s. The researchers started off with secondary data that was available. They tried to uncover the level of complexity involved in such a decision and the magnitude of success. But that wasn’t enough so they started to collect primary data through the use of different techniques. The first started with survey research to understand the people’s beliefs, preferences and core needs that can be satisfied by introducing additional products. The researchers also conducted observational research to observe the people in different settings. They used it to find out which brand the people really bought, where did they take more time in purchase process and where did they look when they were shopping for grocery. This helped them to see the shelf-space that can be used. They used the method of shadowing that is they observed people while using the product. They also conducted unfocused groups where they interviewed a diverse set of people to explore ideas about the brand and what more they want in the food sector to be available to people. After the analysis of data researchers present the findings to the decision makers who pass the final verdict. Due to the positive responses of consumers, the decision makers Decided to go ahead with the idea of introducing more product lines to the food Olper’s brand. It can be said that successful marketing research helps the marketers to understand the costumers’ needs that are still unfulfilled. The two new products of Olper’s in the market are Olwell diet milk and Olper’s cream. The organization has further plans to expand more in this sector and introduce more products related to milk. Future plans Engro Foods Limited (EFL) announced its vision to emerge as a global player in the food industry with a proposed initial spending of over $200 million. The vision announced at a press conference in Karachi aims at transforming the company within the next five years into first national food industry iant, then into a regional force and finally into a global player. For the year 2007, the Board of the Company has already approved Rs 2. 0 Billion investments in capacity expansion and marketing, including setting up of a plant in Central Punjab. While unfurling its future plans, ENGRO Foods CEO Sarfraz Rehman stated, Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We firmly believe that there is a big dairy opportunity available and with our strong entry in UHT milk category, with Olper’s milk, we have placed ourselves ahead of others in terms of quality and consumer-understanding. It is our belief that we can get the maximum out of this opportunity by focusing on innovation and quality. – Press release ENGRO Foods is making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, our vision is to eventually become global. He said that dairies have entered the market in the past but failed due to lack of technical expertise and financial soundness. Elaborating further, he mentioned that ENGROs 40-year-old relationship with the farmer also gives ENGRO Foods another edge over the competitors. The future plans also include as ENGRO Foods coming up with new products / brands to expand its portfolio in the dairy industry. The company will be launching new brands in various dairy categories after c ompleting solid consumer and product research. The company has already hired various global research partners to develop its future portfolio. The company also plans to encourage women in the companys workforce, especially in the milk collection areas, thus contributing to poverty alleviation. The company is already working with several NGOs and agencies and has recently signed an understanding with UNDP to initiate women’s veterinary workers programmed in addition to signing a micro-financing model for dairy farming with Pakistan Poverty Alleviation Fund (PPAF). BIBLOGRAPHY www. google. com. pk www. engrofoods. com. pk www. engrochemicalsltd. com. pk www. nestle. com. pk www. haleebfoods. com