PROJECT COMPLETED BY:

Muhammad Nabeel Shahzad Siddiqui

Saad Mahmood Khan
Syed Abbas Haider Abidi
Muhammad Salman Khan
Mihammad Omer Sharif

PROGRAM:
Masters in Business Administration
PROJECT ON:
Marketing Report on OLPER`s

PROJECT SUBMITTED TO:
Muhammad Ishaq Sheikh











IQRA University
Masters in Business Administration

Certificate

This is to certify that Muhammad Nabeel Shahzad Siddiqui , Saad Mahmood
Khan, , Muhammad Omer Sharif, Syed Abbas Haider Abidi and Muhammad
Salman Khan have submitted their term report on the Olper`s Milk to the
Department of Business Administration.




__________________________________________
Muhammad Ishaq Sheikh
Faculty of Business Administration




ACKNOWLEDGEMENTS

In the beginning all Glory to Allah Almighty by Grace of Whom we were able to
complete our Term Report. It was His will and guidance that we were able to take this
report as a challenge and in the end He bestowed us with his blessings.
Next we would like to thank our parents whose constant efforts and appreciation
encouraged us in every aspect of our lives and InshALLAH will continue to do so.
Our Sincere Thanks to Faculty of Business Administration for supporting us and guiding
us in every phase of our report.
Special Thanks to our Teacher Muhammad Ishaq Sheikh who not only suggested us
this report but also gave us his full support and shared his precious office timings to
discuss different phases of report whenever we needed.













BRAND INTRODUCTION

Olpers is UHT Milk UHT means Ultra Heat Treatment. In this process the milk passes
through 140 degree centigrade in 3 seconds and then immediately cooled to 20 degree
centigrade in the next 5 seconds, which in turn kills all the bacteria. This is the most
sophisticated and advanced process in the world. At Engro Foods Limited we use the
indirect method of UHT meaning that milk is heated by steam passing through stainless
steel pipes outside milk. All other brands in Pakistan use the direct method of heating
that is by injecting steam in the milk, this adds water content in the milk, where as
indirect heating in fact evaporates water from the milk. This is what makes Olpers the
"Thickest Milk".
















BRAND HISTORY

Engro Foods limited (EFL) had only recently been established by Engro a traditional
giant in Pakistans chemical and fertilizer industry. EFL launched Olpers Milk after long
tenure of consumer research, time and money consumption. During this time they
continuously observe the issues with the packed milk. After three years of their launch
Olpers Milk gain reputation among consumers and now currently holding 49% of
market share. Within the dairy market, company now has a diverse portfolio of products
ranging from different types of cream to premium low fat milk.

The packaged milk category was originated in 1981 by 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. By 2006, the dairy milk category was growing at 20 percent annually.
Brands like Milk Pak (owned by Nestle) and Haleeb Milk (owned by Haleeb Foods) had
led the dairy market in the worlds fourth largest milk producing country for nearly two
decades without any real sustained competition. 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. Haleeb was recognized as the blue brand, and professed to
have the naturally thickest milk.

Olpers has woken up the competition. Milk Pak responded with campaigns of its own to
reaffirm the positive equity of its brand. Haleeb implemented a response as well. And
Olpers starts cutting its market share after competition become fierce.

Olpers, however, stepped into the foray by launching a massive campaign that
started off with an introductory slice-of-life. Olpers as a contemporary and modern
brand as the name itself made sound like a foreign brand, giving the perception of
quality. To a large extent, they were successful.




Secondly they did some product changes picking red as the brand color in spite
of greens and blues color, which also helped to enhance the in-store visibility and
presence for Olpers packaged milk, and disassociation from its competition.

Thirdly they highlighted and expanded upon the various occasions in which milk
could and should use and making it All Purpose Milk.

Engro Foods has recently expanded its brands portfolio by launching a premium quality
ice cream with the name of Omore. Omore started its sales from the city of Lahore
because of the culturally inheritor of celebrator of festival of colors i.e. The Spring
Festival. They have started off with 24 different packs and flavors that attract kids and
adults from all walks of life.



























Vision



"Our vision is to become a fast expanding giant 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."






























BRANDS OF ENGRO FOODS.
21% of all Products









OPLERS (Full cream) TARANG (Tea Whitener) OLWELL (0% fat)







OLPERS CREAM TARANG (Powder Tea Whitener) OWSUM (Flavored Milk)







OLFRUTE JUICE OMOR ICECREAM TARKA 1kg (Aslee Ghee)




STOCK KEEPING UNIT
1000 ML __________________________________________12 Liters
1500 ML __________________________________________12 Liters
250 ML __________________________________________6.75 Liters
500 ML __________________________________________6 Liters




















COMPETITION ANALYSIS
MILKPAK






















MARKETING SHARE
Loose Milk 96% (Un-hygienic)
Packed Milk 4% (Hygienic)


PACKED MILK MARKET SHARE:

OLPERS 49%
NESTLE 45%
OTHERS 9% (Haleeb, Good Milk, Day fresh, Nurpur etc.)



96%
4%
Market Share
Loose Milk
Pack Milk
49%
45%
9%
Market Share
Olper's
Milk Pack
Others

PUBLIC OPINOIN & PERCEPTION
Public like Olpers due to its availability and rich taste. Olpers provide good taste in tea
and other dishes which include milk. The other perception is shown in graphs as under:
PERCEPTION ABOUT QUALITY











PERCEPTION ABOUT PACKED MILK








57
67
28
19
0
10
20
30
40
50
60
70
Nutritious Hygeinic Expensive Easy to use

GRAPHICAL REPRESENTATION
Advertisement.
Advertisement in Movies.
Preferred TVCs.
Best Packing.



















ADDS IN MOVIES
ADVERTISEMENT
BEST PACKING PREFFERD PVCs

SUPPLY & DISTRIBUTION
Company appoints distributors to reduce risk factors, investment risk, ware house risk
and cost of transport.

According to Mr. Ali Akbar, Director Marketing EFL:

In order to succeed, you should ALWAYS capitalize on your STRENGHTS and
NEVER on your COMPETITORS WEAKNESS!
EFL 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 Olpers is available in 80 cities across Pakistan. It reflects the
companys intention to become a big player in the industry, both on a national and
international level.

EFL has its own dale and distribution network. EFL has divided Pakistan into five
regions of milk distribution namely: Karachi, Lahore, Islamabad, Multan and Peshawar.
Due to an appealing color scheme, which stands out in the clutter and thanks to EFLs
strong relationship building and special discounts to retail outlets, Olperss has gained
a proper shelf placement in the presence of competitors like Nestle and Haleeb.

EFL DISTRIBUTION CHANNEL
7 Distributors (General Trade).

ICA (International Chain Account).

Makro (10% of total sales).
Metro (10% of total sales).

Food Services.
2 Distributors (10% of total sales).


COMMUNICATION CHANNEL














































DISTRIBUTION CHANNEL













PLANT-1 WARE HOUSE-1 KARACHI















WARE HOUSE-2 HYDERABAD














PLANT-2 WARE HOUSE-3 SUKKAR

PRICE

The prices of Engrofoods Olpers vary according to the size. The prices of the Available
Olpers Packs are shown below.





Pricing Methods/Pricing strategies

The Engrofoods Olpers are sold in retail stores, convenient stores, Departmental
outlets etc.
The pricing methods/strategies are set by those the company sells to. Convenient
stores, Departmental outlets usually sell Olpers at a fixed price according pack sizes.
However, retail outlet uses pricing methods and pricing strategies when selling
Engrofoods Olpers.
Pricing methods
Pricing method Explanation of pricing method
Competition-based pricing Engrofoods Olpers is usually priced below, above or equal
to its competitors' prices.
Discount price Olpers are often marked down during sale periods and special
occasions. Like Ramadan this will: Generate sales Increase profits

EFL is pursuing the competitive pricing strategy for its products.
Size(ml) Olpers
(per carton)
1500 739
1000 792
500 430
250 509


RETAILER PERCEPTION























CONSUMERS REVIEW














































SEGMENTING AND TARGETING THE MARKET FOR OLPERS

It is difficult for any 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 i.e. consumers
have similar preferences. They want milk to be white, carefully processed, and good for
health and bones. Keeping these things in mind Olpers market has been segmented.
The marketers at Olpers have had a number of options available to them when
segmenting the market for their products. So far company has introduced three new
products:
Olpers milk.
Olwell diet milk.
Olpers cream.

DEMOGRAPHIC SEGMENTATION

Olpers products are not bounded to any particular age, gender or lifecycle. The brand is
meant for all the users of higher upper or middle class families. Even though the brand
calls for a small percentage of an individuals income but lower class wouldnt 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 Olpers has been
positioned as a brand for high income earners. Due to the income factor involved it can
be said that Olpers milk target a specific social class who are health conscious and
concerned about their weight.







PSYCHOGRAPHIC SEGMENTATION

On the basis of psychographics, factors such as personality traits, lifestyles and values,
the marketers at Olpers 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 Olpers
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. Olpers ads also target believers, traditional conservative people with concrete
beliefs. The ads for Olpers show the beliefs of healthy life with processed milk and
plays on the emotional aspect more.

BEHAVIORAL SEGMENTATION

Olpers 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
Olpers, every morning they should drink Olpers and everyday they should feed their
pets with Olpers 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 Olpers brand
and shifting loyal and switchers to convert into hard core loyal as well.

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 the
largest profit margins and market share in the milk industry. Thus the marketers at
Olpers 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:


Packaging of Olpers milk and Olwell in red color and Olpers cream packed in
purple color are quite different and distinctive from the typical green and blue
packing used by other competitors.

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 Olpers .

Olpers 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 nutritions that
are part of milk due to passing through so many processes. But Olpers positions itself
as milk that has not lost its nutrients.
The unique selling proposition for Olpers is: Subah Bakhair Zindagi, but recently the
company changed the USP to: J o dil khol kay jeetay hain unheen kay liyay hai
Olpers. Both the tag lines have a very positive impact on Olpers image because of
the emotions involved in both the lines.

The marketers have used different positioning for Olpers products:

They have used the attribute positioning for Olpers milk. The main theme of the
product is that it is meant for all purposes without any user imagery. Olpers ads
also show attributes of milk such as good for health.

They used the benefit positioning for Olwell. The product is positioned as
delivering the benefit of helping to reduce weight and for healthy bones.

Olpers 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.




COMMUNICATION AND SALE 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 the
largest profit margins and market share in the milk industry. Thus the marketers at
Olpers 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
Packaging of Olpers milk and Olwell in red color and Olpers cream packed in purple
color are quite different and distinctive from the typical green and blue packing used by
other competitors.

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 Olpers Olpers 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 nutritions that are part of milk due to passing through so many
processes. But Olpers positions itself as milk that has not lost its nutrients.

The unique selling proposition for Olpers is: Subah Bakhair Zindagi, but recently the
company changed the USP to: J o dil khol kay jeetay hain unheen kay liyay hai
Olpers. Both the tag lines have a very positive impact on Olpers image because of
the emotions involved in both the lines. The marketers have used different positioning
for Olpers products:

They have used the attribute positioning for Olpers milk. The main theme of the
product is that it is meant for all purposes without any user imagery. Olpers ads
also show attributes of milk such as good for health.

They used the benefit positioning for Olwell. The product is positioned as
delivering the benefit of helping to reduce weight and for healthy bones.

Olpers 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.





SWOT ANALYSIS
STRENGTH
ENGROS BACK

Olpers is a brand of EFL. This means that consumers can relate their former Image of
EFL to Olpers. 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 Olpers 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.

EFL can easily afford research and development costs for Olpers 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.

In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction
upon EFLs products. Its taste, quality proposition and world-class quality proposition
system.

STRONG CONSUMER & PRODUCT RESEARCH

Olpers 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.











WEAKNESSES

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 Olpers. The company may need to find a suitable color
in which to focus its upcoming marketing strategies.
LOW QUALITY MILK
EFL is not having its own dairy farms; it largely collects loose milk from farmers
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 Olpers 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.

MILK COLLECTION & DISTRIBUTION COSTS

EFLs 34 out of 40 milk-collection centers are located in Punjab, whereas its 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 travelling time.

NARROW BRAND PORTFOLIO

It has been more than a year now, when EFL launched its first dairy product, Olpers
Milk on March20, 2006. But EFLs brand portfolio still consists of just 3 products i.e.
Olpers Milk, Olwell Milk and Olpers Cream. Whereas its competitors like Nestle and
Haleeb Foods have a much diversified line of dairy products.



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.


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.
AWARENESS

Growing dissatisfaction with loose milk and increasing awareness about health and
hygiene issues have led to increased processed milk consumption.

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 million milch 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, countrys annual milk production is expected 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.



THREATS

COMPETITION

Competition may pose a threat because the company will have to maintain its
leadership in an expanding market so that it doesnt lose its market share to its
competitors. For Olpers 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.


PERCEPTIONS AND PRICE DIFFERENTIALS

Consumers perceptions and price differentials can cause a threat for the company. It is
important that Olpers comes up to the expectations of the customers and fulfills its
conformance quality that is the company meets its promised specifications. Consumers
preferences change with time and prices might create certain barriers in terms of the
profit margins for Olpers. For example, lose milk is still cheaper than packaged milk and
that is also one factor that people still prefer to buy lose milk.











RECOMMENDATIONS:

Before lunching Olpers Milk, Engro spent a lot of money on advertisement but at that
time Olpers is well known in the market. So, my recommendation to Olpers is to reduce
the advertisement budget and this amount should be added to CSRs budget.
They should start to manufacture powder milk in order to meet the domestic demand
and so that it can be helpful in saving the foreign exchange that is expensed in
importing the powder milk from foreign countries.



















CONCLUSION:


Olpers stand committed to sustainable business growth and ensure the safety of their
people, assets and community in which they operate. They repute as a local giant
actively involved with community welfare in remote areas has also been a positive add
on for Engro Foods. Their direction for the brand (Olpers) is considered one of the
fastest growing FMCG brands in Pakistan. So, they acknowledge consumers for
improving their product.