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Report On Engro Food
Report On Engro Food
MARKETING PROJECT
Dated:8th may 2017
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Report on engro foods 2017
Executive Summary
Engro Foods Limited (EFL) started its operations in 2005 and is a fully owned
since its birth as Olper’s Milk, Tarang and Omore are among its best-selling
brands. Engro has introduced EMAAN payment system for farmers and it is giving
training to farmers for properly feeding animals and it is also providing medical
assistance to farmers.
Analyzing the EFL with respect to different marketing models like marketing mix
,promotion mix, PESTEL, Hofstede Cultural Dimensions etc some major issues are
found with such company. It is analyzed that Olper’s and Tarang are successful
brands having very few issues but the others brands are having many issues with
The main reason for Olper’s success is its nature itself that is for all purpose and
also it’s attractive and family oriented TVCs every year specifically in Ramzan
low price. Omore is getting awareness among consumers now a days because of
word of mouth and its taste and quality. Furthermore, current infrastructure
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Corridor will opportunities to EFL to expand its business with low cost.
It is analyzed that major issues with EFL are that it is lacking in doing attractive
promotion of its products and it has faced quality issue with products. Olfrute juice
has both of these issues as its taste cannot be differentiated with its competitors or
its quality is below than competitors and its TVCs are not so much attractive and
also they are having proper connection with product nature. While on the other
hand, the idea of offering a traditional desi drink i.e. Lassi in tetra pack is not liked
by people. Although Omore brand of EFL is getting success but there are some
issues with this flagship brand. First it is charged with high price as compare to its
strong competitors like Walls and secondly its ads are could not connect an ice
cream with happiness. Omore ads are effecting negatively on children as they are
teaching children to disobey teacher, eat in class and fight for ice cream. Many
other issues are found with some other products of EFL like Olwell ad (now
Olper’s Lite) was opposite to Pakistani culture and now EFL has re-launched the
Olwell under the name of Olper’s Lite but there is no TVC for this product. EFL
has targeted only the professionals and upper middle class in its Olper’s Lassi ad
while Lassi is for every age group and it a refreshing drink not a fun drink as
promoted.
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It seems that marketing managers of EFL are not doing comprehensive research
before launching a new product or making ads for new products. It has been
observed that TVCs of every product except Olper’s milk are having issue in them
EFL should also focus on its other brands rather than focusing only on limited
brands like Omore, Olper’s etc. EFL can get maximum benefit of its Omore brand
as it is quality brand but the need is to reduce price and make effective TVCs and
giving incentives to retailers. It should also target young girls and boys by making
TVCs for its Olper’s Lite low fat brand and also promoting it by arranging health
1.1 Introduction
Engro Foods Limited (EFL) is fully owned subsidiary of Engro Corporation. Engro
Corporation was found in 1957 under the name of Esso Corporation Limited. In
1978 it was renamed as Exxon Corporation limited and then in 1991 it was given
the name of Engro Corporation Limited. And till now it has grown to become one
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Petrochemicals.
Engro Foods started its operations in 2005 and developed it to get huge market
share in just few years. Engro brands are considered to be the high quality brands
and charge competitive prices. EFL’s growing market share covers over 8 regions
and 300+ cities in Pakistan as well as over 18 states in USA and 4 provinces in
Canada, where our halal food range continues to attract a wide cross-section of
OLPER’S:
o Olper’s milk
o Olper’s cream
Olper’s Lassi
Omore ice-cream
Omung Dobala
Dairy Omung
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Engro Foods’ most successful products are Olper’s milk, Tarang and now a
days Omore ice cream. Olper’s milk is successful because of its nature that it
is for all purposes and also for its attractive and family oriented TVCs while
Tarang is successful for its low price and Omore for its taste and quality.
1.2 HISTORY
Engro chemical Pakistan Limited is the second largest producer of Urea fertilizer
Pakistan. The company was incorporated in 1965 and was formerly Exxon
Chemical Pakistan Limited until 1991, when Exxon decided to divest their
fertilizer business on a global basis and sold off its equity of 75% shares in existent
local financial institutions bought out Exxon’s equity and the company was
seeds and has invested in joint ventures engaged in chemical related activities. As
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offering industrial solutions in automation and control. A new milk plant has been
Chemical Pakistan Limited. 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
also positions the company to leverage its corporate social responsibility initiatives
and work closely with rural communities to promote integrated farming and
alleviation and improving livelihoods of the poor in the milk collection areas.
Engro Foods will work with the Pakistan Poverty Alleviation Fund and its three
farmer’s profitability and develop a positive social and business climate for growth
hire the best from Pakistan and beyond, our organizational culture can be summed
up in one word: engrobility. Engrobility defines our way of life and is at the heart
of the Spirit of Engro which encompasses the myriad values that each of our
Training
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To ensure that we remain the most sought after employer amongst college
graduates and experienced professionals we continue to maintain a stringent focus
on implementing a holistic strategy for employee and organizational development.
Our comprehensive training and development framework ensures essential skills
development across a wide array of competencies and serves as an integral part in
retention of a great talent pool. Living this philosophy of providing an enabling
environment and having a well trained workforce, we provide a conducive
platform to all our employees to actualize their innate talent and unleash their true
potential thereby fuelling our best-in-class organizational culture
Volunteerism/csr
We understand the importance of giving back to our communities and serving the
underprivileged in whatever capacity we can. To this effect our employee network
of volunteers - EnVison (Engro Volunteers in Service of the Nation) provides an
enabling platform to our employee community to better lives of millions of
underprivileged Pakistanis year after year. We continuously search for
opportunities that provide our employees the chance to make positive and long-
term impact and the opportunity to do more each day to create inroads for the
under-privileged
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development”
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Core values
2. Innovation
3. People
5. Consumer centric
People
Engro have a team of passionate people, they have intelligence and
firm approach towards business. People of Engro have more
chances to enhance their skills because Engro facilitate them with
training, fun loving environment, necessary resources and facilities.
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Innovation
Engro always encourages innovation by their people or from
wherever they get anything new. It also boost up the confidence
level.
Consumer Centric
The basic target of any organization is their costumers. Engro is
delivering quality to their consumers.
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Product line
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Engro Foods is a multinational enterprise that deals in beverages and food items.
Based in the city of Karachi it is the subsidiary of a Pakistani company called
Engro Corporation. Engro foods are manufacturers, processors as well as dealers
of drinks, frozen desserts and dairy products. The brand has been able to carve an
individual name for itself because of its sheer determination in providing healthy,
nutritional and fresh qualitative products at minimum possible prices. The
satisfaction of the consumers has taken the company to unimaginable heights as
the huge sales have resulted in the company maintaining its position at the top
level.
Haleeb
Nestle
Although Engro Foods started its operations, using dairy products like milk but
later it included many food products under its product portfolio. In order to meet
the demands of its health conscious customers, it dealt in food items that were
healthy and had good nutritional value. Special attention has been given to the taste
and quality of the products. Their multiple products include items like the
following
Flavored milk
lassi
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Milk powder
Fruit juices
Ice creams
Milk
The brands milk items include olper’s full cream milk that is creamy in nature and
olper’s lite for health conscious people who tend to drink low-fat milk. The fruit
juicers include Dairy omung and olper’s y-frooter.Tarango is the special and
creamy milk powder whereas the frozen desserts are available in cups and sticks.
Olper’s cream and olper’s tarrka are some of its other products. The tarrka is used
as a special spice to enhance any food item. Although the ice creams are available
in various sizes, the other dairy products are available in mostly half and one liter
sizes. Engro Foods also deals in anhydrous milk fats that are used for various
purposes like frying, cooking, as replacement for fat in dairy products, as
ingredients in bakery products and for making ice creams and confectionary. Its
product also includes unsalted butter that is derived from the pasteurized cream of
both buffalo and cow.
For its international market, Engroo Foods has also started venturing in to various
other food products. Besides the regular items, the other products served are frozen
meat related food items like turkey, beef and chicken.
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and stores. Even high profile marts and showrooms that have food item counters
display the products of this company. This has become possible because of the
transports owned by private firms. The usual channel under this scheme includes
distributer, wholesaler, retailer and then the consumers.
The direct channel has become possible because the company is selling their
products to the consumers directly through their own personnel on cycles, trucks or
tricycles. The distribution network is an extensive one so that prompt deliveries are
possible. Engroo Foods has set up its own dairy farms as well as plants for milk
processing in Sahiwal and Sukkar. It has appointed workforces for milk
procurements and created departments that are vigilant in its efforts to ascertain the
freshness of the products. The company covers at least twelve regions and has
nearly three hundred and fifty distributers working under it.
Under its international expansion plans, the company signed an agreement to buy
the American food company Al- Safaa - Halal. Today the company has become an
international company with a global market.
Engroo Foods has decided to follow the strategy of competitive pricing for its
products. In order to do so it has kept a careful watch on the market economy as
well as the pricing policies of all its competitors. It receives regular feedbacks that
help it in determining and fixing the prices of its own products. The market
demand is another deterrent in determining the prices and Engroo keeps the lowest
possible prices without hampering the quality of the product.
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The company has decided to keep the prices flexible on a minimum and reasonable
scale, so that each and every section of the community can reach towards these
products. Large volume of sales yield larger profits for the organization. Keeping
all its options open the prices tend to fluctuate to meet the demands of the
consumers as well as other economic factors. In order to maintain its commitment
towards providing realistic food prices the company has taken admirable and active
steps so that cutting of excessive costs can be made possible.
In some cases, the company has also used a premium pricing policy where the
prices are a bit more than the prices of local available brands but are quite
reasonable when compared to the international brands. These are for brand
conscious customers who tend to purchase products that provide competition to
foreign markets.
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to buy their products. The healthy milk products are a hit with them and the kids
love the taste of its ice creams.
Engro foods recognize the contribution of active advertising to make high sales.
The vision of the company is “Elevating Consumer Delight Worldwide” and for
this purpose, it has taken the help of print media to highlight its products in every
nook and corner. Billboards magazines and newspapers are an important part of
their strategy. Besides this, they have created noticeable ads that are colorful with
catchy tunes and made them a part of the electronic media specially the television
and radio. Advertisements are also displayed on vehicles like the bus, trucks and
trams.
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Manufacturer:
Manufacturer are the producers of the product. They have many plants that are
engaged in working on taking orders, purchasing raw materials and producing
finished goods. When all the process of producing goods are finished then these
goods are supplied to distributors and then it is available to final customer.
Distributors:
They have their own distributors all over Pakistan. Distributors have some fixed
commission from the company. In case of any risk, occurs from goods distributed
the cost is shared by all channel members and also company. Distributors are the
wholesalers of the company.
Retailers:
Retailers are the person who receive the products from the distributors. Profit and
risk are shared as same as the distributors.
Customers :
Customers are the final product users. They receive the final products from the
retailers. Company make there products according to the desire of consumer.
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3. Promotion mix:
3.1 Promotion and 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.
Ramadan campaign
Olper,s always had a unique campaign; and it has been 3 years since Olper,s
celebrates the spirit of Ramadan. Olper,s advert launched in Ramadan 2009 is the
latest example for it. This Ramadan they have has come up with another nice
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promotional campaign. They are promoting the Muslim patriotic spirit all around
the world through the most popular ³Hum Mustafavi Hein´song and a message of
Peace for the whole world. The advert features Atif Aslam and Dawood Ali. It is
directed by Asim Raza and he has worked fabulously. This ad has been shot in
5 different countries I-e Pakistan, Dubai, Morocco, Brunei and Turkey. They have
shown the Muslim rich culture, heritage and beautiful mosques
Pest analysis
4.1 Political /legal forces
“when the rate of change inside the company is exceeded to rate of
change outside ,then the end is near”
4.2 Economic forces
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
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
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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 astate-of-the-art milk
processing facility in Kabirwala, Punjab. The plant, Nestlés largest milk reception
facility in the world has a processing capacity of 2 million liters of milk per day
synonymous with the early arrival of the (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
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
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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
(Milk, what else?), addressed the misconception that processed that packaged milk
has preservatives. The campaign talked about the benefits of TetraPak¶s six-
layered packaging material and innovative technology that keeps milk safe for a
longtime. 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
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
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Milk yields per animal have been increased through scientific feeding &
breeding.In year 2005, the Ministry of Industries and Production established Dairy
Pakistan Company on the lines and model of Dairy Australia. The main objectives
To promote milk and other value added dairy products in the domestic
value chain.
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Pakistan,s food and beverage industry thought the brand would flounder
Packaged Milk is just a dent on this number. 92% to93% of milk is open
market. Nestle Milkpak is the king of the market having 40% market
share. Haleeb was second in place. Olper¶s swept the rug right out from
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under Haleeb,s feet and they lost their market share and their place as
5. Market segmentation
they can target the group of customers who share similar needs and
and good for health and bones. Keeping these things in mind Olper’s
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.
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lifecycle stage. The brand is meant for all the users in higher upper or
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
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
the market more towards achievers who are goal-oriented and focused
variety in the milk sector. For example the ads for Olwell mostly sho
doing quite well in their concerned fields. The Olper’s products have
targeted experiencers because the company has given them a new set
of brand and so many will make their first purchase because they want
conservative people with concrete beliefs. The ads for Olper’s show
consumers seek inthe 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 Olper’s and every day they
There may be some hard core loyal in the milk sector. Loyalty maybe
even be switchers and shifting loyal in the milk sectors that are either
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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.
Recommendations
Engro Foods should have much diversified bi-product line of dairy products
like Nestle & Haleeb.
They should introduce new promotions to get customers’ attention.
EFL should expand its dairy farms so that they can get competitive
advantage.
EFL should focus on Market Penetration, Market Development and Product
Development strategies with more efforts to be the market leader.
They should go expand its capacity to enter into in international market like
Nestle.
Engro Foods can be into Co-branding with other brands like Olper’s with
Lipton tea bags, Olper’s with different biscuits etc. to increase their sales
They can also move towards other foods products like Nestle launch Kit Kat
Chocolate, Meggi Noodles, Sweets Candies etc.
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