Engro Foods’ History :

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."

Mission:

“Build Branded food business to improve quality

of life by offering tasty, affordable and highly
nutritional products to our consumers while
maximizing stake holders' value “
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

Market Analysis:
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
endeavours 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 urbanised 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.

Goods Clasification:

COMPETITIVE ANALYSIS:

The strategic priorities of Nestle Pakistan are claimed to be focused on delivering shareholder
value through the achievement of sustainable, capital efficient and profitable long-term
growth. Improvements in profitability would be achieved with due respect to quality and
safety standards at all times.
In line with the above objective, Nestle Pakistan aims at growing into a number one food
company in Pakistan in the shortest possible time with the unique ability to meet the needs of
consumers of
every age group - from infancy to old age, for nutrition and pleasure, through development of
a large variety of food categories of products with highest quality.
Nestle Pakistan envisions that the company should develop an extremely motivated and
professionally trained work force, which would drive growth through innovation and
renovation.
Special training programs have been designed for employees at each level to keep up with and
develop this vision. The study concludes that Nestle has a significantly high growth rate
(36%) and has grown and developed at a high pace in short span of time. On the other hand
Haleeb has a market share of 28%. And Engrofoods having 21% the major contributor toward
this growth and development are human resource, marketing and sales departments. The
major contributor is its appropriate strategy particularly its relationship with the social and
environmental sectors. Perhaps this is the reason that it in spite of being a multi-national has
been well accepted in Pakistani culture. There are ample chances of its survival in future.
Keeping new players such as Olper’s, and the old one’s like Haleeb, Nestle focused more
on
advertising.
Nestle have been experiencing a constant increase in cost with raw material contributing
the
larger part of this increase. Haleeb having their own suppliers so the raw material cost is bit
low.
Nestle maintained its value of gross profit margin around or above 30% to ensure that it
has
a strong control over its costs, and the efficiency of production. But on the other hand,
Haleeb faced a bit of down fall when Olpers introduced their campaign.
Market Served:

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. The markets, even urbanized, still have a
strong preference towards the ‘doodhwala’ who in their minds is the source of purest
and most fresh milk. Also, price differential between packaged
milk and un-processed milk is also a strong influence on their decision
 Markets Served

Market Share:

Name Market share%

Nestlé Milkpak 41
Haleeb 30
Olper’s 21
Others( Good milk) 08

Fact sheet engro foods limited:

At A Glance (as of December 2009)

 Total Employees: 928

 Sales Revenue: Rs. 14,900 Million
 Investments: Rs. 153 Million
 Profit After Tax: Rs. (434) Million
Consumer Purchase Process:

Need arousal

Information search

Evaluation behaviour

Purchase decision

Post purchase
feelings
Distribution Channel :
Olper’s distribution is done by following ways.

Manufacturer
Wholesaler Direct channel
Indirect

channel &

Distributor Direct Sales Force

Consumer Consumer

Pricing Methods/Pricing strategies:

The Engrofoods Olper’s 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 Olper’s 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 Olper’s is usually priced below, above or equal to its
competitors' prices. Discount price Olper’s are often marked down during sale periods and
special occasions. Like Ramadan this will: Generate sales Increase profits

Implications of any market research:

Before the inception of the brand Olper’s, AC. Neilson carried out a marketing research for
Engro Foods to determine the viability of the brand name ‘Olper’s’ and the market readiness
through surveys, interviews and focus groups. 1200 names were reviewed and analyzed
before Olper’s was decided.

Target Market:

BEHAVIOURAL PSYCHOGRAPHIC DEMOGRAPHIC

BENEFITS PERSONALITYTRAITS INCOME CLASS

1 Healthy, nutritious, purpose Variety seeking experiencers Upper and uppermiddle

2 High nutrition, low fat Goal oriented/careerfocused Upper and uppermiddle

Primary Market:

Upper middle and upper income groups seeking healthy nutritious milk.

Secondary market:

Diet conscious, career oriented, upper middle and upper income class.

Marketing Objectives:

Need satisfying :

To provide hygenic good health and bones and nutritious packaged drinking milk

To provide low fat milk that is high nutrition

To provide all purpose milk that can be used many form

Long and short term sales target objective :

To achive high market share at the end of this year

To be the market leader in the packaged food the marketing manager of the engro food states
when we launched we wana be the market leader in 5 years.

Advertising objectives:

 In 3 years, to communicate the benefits of pure and all purpose milk and to 2/3rds of
80% of people still using unpackaged milk.
 In 2 years, communicate the benefits of low-fat-high-calcium milk to 1/3rd of
packaged milk users.
  Try to communicate Olper’s value proposition, image and try to position itself as a
pure and all purpose milk.
 To convince the informed group that Olper is the pure, allpurpose and healthy for
bones drinking milk; something better in the same price for packaged milk.
 To convince the informed group about the high calcium and low
fat in Olper’s, something that will help you live a successful and healthy life.

Marketing Mix:

Product:
 Price:

1500 ml: 1000 ml:

1000 ml: Rs 65 250 ml:

500 ml: Rs 35

250 ml: Rs 18

Place:

Sales and distribution networks

Fair price shop

Pakistan divided into five regions (Karachi, Lahore, Islamabad, Peshwar, and Multan)

Promotion:

TV, Print, and Radio

Intend role of advertising:

Advertising plays an important role in today’s competitive business world. It provides
benefits to Manufacturers, Retailers, Customers, Salesman and society as well. Mostly the
advertisement use for the following purpose.

o Introduces a New Product:

o Creates Demand for Product:
o Expand Market:
o Assists Personal Selling:
o Building Brand Image:
o Reduces the cost of goods:
o Persuades prospects:
o Employment

Primary Vs Selective Demand:

 80% people still using unpackaged milk

 Former entrants communicated the benefits of the packaged milk
 Needs has been identified now it is time to stand out

Direct vs. Indirect Action:

Olper’s advertising objective is to stimulate both direct and indirect action.

• Through their promotional campaigns like the ones during Ramzan and otherwise, they try
to get a direct response from people to motivate them to buy.
• Indirect action is mostly the case where they are trying to create favorable attitudes towards
the brand Olper’s.
Objective stated in relation to the advertisement:
The objectives of advertisement

Try to communicate Olper’s value proposition, image and try to

position itself as a pure and all purpose milk.
• -To communicate Olper’s value proposition, image and position
itself as a high class, diet milk.
• -To convince the informed group that Olper is the pure, all
purpose and healthy for bones drinking milk; something better in
the same price for packaged milk.
• -To convince the informed group about the high calcium and low
fat in Olper’s, something that will help you live a successful and
healthy life.
• -Stimulate desire among people through effective campaign.
• -Motivate the desired group to try the milk eg. through free
sampling with bread (Olper’s did this when they entered the
market).
Advertising

Product Concept:

Segmentation and targeting :

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 new product:
Olper’s milk.
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.
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 experiencers 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 experiencers 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.
Product Positioning

• Attribute positioning for Olper’s – All purpose

• Benefit Positioning for Olwell- reduces weight, healthy bones

Product Differentiation

• Perceptible differentiation; red packaging

• Hidden differentiation; artificial sweet flavor, constituents

 • Induced differentiation; consistent advertisement

1. Advertisement
Television adds are used. In addition to this adds on newspapers and
magazines are also published. Other advertisement tools include
holdings and sign boards.
2. Personal selling
The sales force records the
reaction of the consumers towards the product that further helps the
company to estimate and foresee the acceptability of product among
the customers.
3. Sales Promotion through in-store activities
company representatives are present in the store and they interact with each customer entering
in the store they offer them to taste the free samples of the product and also offer some
discounts and free samples.
1. Income:
People having income Rs. 25,000-30,000 per month are included in
this segment.
2. Age:
All age groups are considered such as: children, youth and old age.
3. Gender:
Both genders i-e male and female are included in its target consumers.
4. Family size:
Each family size is considered.
5. Family Life-cycle stage:
Every stage of the life-cycle is considered.
6. Geographic location:
High-class as well as middle super stores in high traffic markets of both posh areas as well as
middle class towns and colonies of big cities throughout the Pakistan are targeted.
7. Life style:
society that are sophisticated, quality conscious.
8. Use situation/occasion:
The milk are not specially meant for special occasions like breakfast etc but people may use
them as a part of their meal.
9. Prior experience:
Previous usage of these drinks will motivate its consumer for
repurchase due to itsquality and taste.
10. Purchase behavior:
As far as the sale frequency of milk is concerned, it lies in moderate range. Because it is not
occasion specific, People use it on consistent basis. Here most important matter is the brand
loyalty. Its frequent use is expected mostly from the brand loyal people.
Product Name:
• “Olper’s”

Communication Media:

1. Setting the Advertising Objectives

The advertising objectives must flow from prior decisions on target market, market
positioning, and marketing mix. Advertising objectives can be classified according to whether
the company aims is to inform, persuade, or remind.

Informative Advertising:
In the beginning Olper’s will give detailed informative advertising about Milk. At this
stage the advertising duration in television will be of 45 seconds.

Persuasive advertising:
After getting awareness in the market, Olper’s will emphasize on persuasive and
comparative advertising to present additional and competitive features of Olper’s milk. At this
stage the media channels will remain same, but tenure in television will be shorter than
before.
Reminder Advertising:
At the maturity stage of Olper’s milk, Olper’s will give only reminder advertising to
its customers that Olper’s exists in the market. At this stage the Olper’s will reduce the
frequency of its ads in television and in radio and will shortlist the billboards and advertise
only at rush and potential areas.

Competition and culture:

There are large number of competitors in the market, so in their presence, Olper’s has
advertise Olper’s milk heavily to counter competition.

Advertising Frequency:
At initial stage of Olper’s in the market, repetitive advertising will be persuaded and
ad will run three times in a day for 5 days a week in first three months of the re launch .

3. Choosing Advertising Message:

Advertising campaign vary in their creativity. The creativity factor can is more
important than the number of rupees spent. Advertising goes through four stages to develop a
creative strategy:

Message Generation:

The product benefit message should be decided as part of developing the product concept. As
Olper is milk product, it will give the nutritional, rational, sensory message to its customers,
which will appeal them to buy it.

“ES JAHAN KA HER MUSLMAN MANAYE MUKAMAL RAMADAN”

Message Execution:
The message impact depends not only upon what is said but also on how it is said.

. For executing the message there are different cohesive styles, tone, words and format.

A. Execution Style:
The advertisement of Olper’s Milk will be executed with striking musical jingle,
famous personality (pretty models), showing cows, buffaloes and farm houses to give a
natural image.

B. Execution Tone:
The executed tone of the ad will be positive and inkling towards Olper’s, humor will
be avoided as it takes attention away from the message.

C. Execution Words:
The memorable and attention-getting words will be used in the advertising of Olper’s
Milk, (WO JO HAR DIN KO NAE SUBA MANTE HAIN)so that the consumers could
remember the add.

D. Execution Format:
TV advertisements will use attractive color combinations (the background and
presentation) with appealing musical jingle. Print ads will be using colorful pictures (Cultural)
with product packaging and its information.
Selecting Specific Vehicles:
The media planner must search for the most cost effective, dominant, and frequent
vehicles within each chosen media type. The planner has to rely on media measurement
service that provide estimate of audience size, composition, and media cost

Determination of which media reach the target audience:

• Traditional Mass Media

Radio, Television, Newspapers and magazines in the case of Olper’s.

TVC’s run during prime times on all famous television channels like Hum TV,
Geo, PTV, ARY and many others.

Also, advertise in newspapers like The News, Dawn. They also advertise in
weekly magazines like Sunday times, Fashion mag and the like

• Other Media

PR actvities

Sponsorships

• Supplemental Media

Trade shows

Sales promotion such as point of purchase displays.

Print Media:
The print media used will be Newspapers (Front Quarter page), i.e. Jang, The News,
Dawn, and Magazines (Quarter page) i.e. Akhbar-e-Jehan, Family magazine, Khwateen
Digest, Sunday magazine.

Billboards:
OLper’s had decided to advertise “Olper’s “milk on several billboards at various
locations covering the whole citys.
5. Deciding on Geographical Allocation
The company has to decide how to allocate its advertising budget over space as well as
over time. Olper’s will be advertised on a national level on all the national radio and TV
channels, national newspapers and magazines.

Reach:

The company has the objective to reach the maximum target audience with the help of the
advertisment company reach the 90% to 95% target audience.

4. Deciding on Media Timing:(frequency)

Olper’s decided to adversities on TV thrice a day and 5 days a week in first three
months. The ad will go on air in the prime time broadcasting like Drama hours; it will also be
advertised daily in the mid break of KHARBANAMA. Olper’s will also be advertised in the
sports matches like Cricket Matches, which has a very large viewer ship

Copy Element:
Art Elements:

Purpose of the visual:

• Captures reader’s attention, clarify claims made by copy

• Shows Olper’s milk in use, arouses interest in the headline

Layout Style:

• Circus layout

Chief focus of the visual:

• Package containing the product

• User benefit

Production elements

Mechinical consideration of the add

Run time
1 min 30 sec

Colour

The colour in the theme used dark red beacause the company make its image with the use of
this colour and there is yellow colour that’s show the intrest of people who likes tea

Style

We are using personility symbol for the olpers ads.

Caption:

Jo dil khol kay jeetey hain unheen kay liye

hai Olper’s
Body Copy:

Dil khol kay jiyain Olper’s kay sath kunkah

Olper’s hai mukamal doodh har tarah kay
istimal kay liye
Tag line (Corporate Slogan):

Subah Bakhair Zindagi

1. Production values sought

Typography

The style of the writing

 1. Printing

2. Illustration/photography

3. Paper

4. Electronic effects, animations

5. Film

6. Sound effects

Music

PROMOTION BUDGET

Cost of Billboards used in different places in the country

Billboards

We placed 12 billboards in the main cities of pakistan

TOTAL COST 1,897,000

Print Media

Daily Dawn (week days) Front page(20x5) 321750

Daily Dawn (Sunday) Front page(20x5) 273000

Jang (week days) Front page (10x5) 11500

Jang (Sunday) Front page (10x5) +200% extra 34500

640750 x 4 2563000

TV Advertising

GEO

From 7 to 8 (75000/min) 112,500 x 2 225,000

From 8 to 9 (150,000/min) 150,000x 1 150,000

Total: 375,000

PTV
From 5 to 6 (25,000/min x 1.5 min) x3 112,500

From 8 to 9 (75,000/min x 1.5 min) x2 225,000

Total: 337500
TOTAL PROMOTION COST 5,672,527

Note: This promotion budget is for one month

TV advertising will be 2 times in a day and 4 days a week in first three months. Our ad will
go on air in the prime time broadcasting. In the first phase we will have print ads on the Dawn
and Jang.

ADVERTISING RESEARCH:

Before the inception of the brand Olper’s, AC. Neilson carried out a marketing research for
Engro Foods to determine the viability of the brand name Olper’s’ and the market readiness
through surveys, interviews and focus groups. 1200 names were reviewed and analyzed
before Olper’s was decided. 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 we will conduct another marketing research to find out the success of Olper’s. we
will start with secondary data that is available. we try to uncover the level of complexity
involved in such a decision and the magnitude of success. But that isn’t enough so we will
start to collect primary data through the use of different techniques. The first start with survey
research to understand the people’s beliefs, preferences and core needs that can be satisfied by
introducing additional products. we will also conduct observational research to observe the
people in different settings. we 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 help us the shelf-space that can be used.we will also conduct
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.

We will conduct questionnaires to find the responses of consumers about Olper’s. .

It can be said that successful marketing research helps the marketers to understand the
costumers’ needs that are still unfulfilled.

Cost
We will spend time for this research project for finding out our objective and get maximum
credit from our advisor.