4. Background of the Organization
Engro stands for “energy for growth”.
Engro Foods started its business operations in March 2006 and with
the successful launch of Olpers Milk, Tarang, Olpers Lite, and
Olpers cream and brought its new product in the market in 2009
which named is O’more
Engro Foods has set up two processing plants at Sukkur and
Sahiwal.
The plant located at Sahiwal 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.
5. Board of Directors
Engro's 13-member Board of Directors is
responsible for the overall supervision of the
company.
Hussain Dawood (Chairman)
Asad Umar (President)
Asif Qadir (Director)
Arshad Nasar (Director)
Shahzada Dawood (Director)
Israr Ahmed (Director)
Shabbir Hashmi (Director)
Khalid Mansoor (Director)
Rohail Mohammad (Director)
Khalid Siraj Subhani (Director)
Muhammad Aliuddin Ansari (Director)
Abdul Samad Dawood (Director)
Saad Raja (Director)
6. Vision
Engro Foods’ vision is
“Elevating Consumer Delight
Worldwide” and the Company
aims to generate a significant
portion of its revenue from
foreign operations.
7. Mission Statement
We exist to deliver quality
food products, which
exceeds our costumers
(EFL’s) expectations. Our
people are greatest assets and
we value a market place,
which inspires excellence in
our teams. Our action
reflects our pride in being
environmentally responsible
and good community citizen.
8. Objectives & Goals
Engro’s first priority is to fulfil
costumers needs and wants by
providing them quality products like
Olpers Milk, Omore’ Icecream,
Olfruite etc. Second main objective
of Engro is to increase the profit
share of shareholders and get hold
on a large market share.
EFL dreams to be BIG. Engro wants
to be a major player in the food
industry which is also evident in
their vision, "Elevating Consumer
Delight Worldwide".
9. Marketing Strategy
According to SMEDA Engro produce about 28
billion liters a year
Packaged Milk is still not that popular here
Because of various socio economic factor 92%
to 93% of milk is open milk
Before OLPERS Nestle MILKPAK was the
king of the castle and Haleeb was second best
Sometimes Businesses become too comfortable
with present situations and also forget strategic
vision and analyzing the market and that is
exactly what happened.
10. Marketing Strategy
The grass mowed under the feet of Nestle and Haleeb
when OLPERS (with huge financials) came in.
OLPERS did something else that was amazing; they
attracted, they strengthen and delighted their customers
into becoming more health conscious and purchase
savvy.
Now Olpers become one of the most recognizable
brands in Pakistan, and that to in just two years
11. Marketing Research
Before the inception of the brand Olper’s,
AC. Neilson carried out a marketing
research for Engro Foods.
1200 names were reviewed and analyzed
before Olper’s was decided.
Once the brand was introduced the
organization wanted to add more product
lines to it.
So, 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.
12. Marketing Research
They 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.
The researchers conducted questionnaires to
find the responses of consumers about Olper’s.
They got a positive feedback from the customers
who also encouraged them to invest further and
to setup a new plant in Sahiwal.
13. Marketing Research
Through different research
methods the organization was
also able to find out the number
of competitors brands.
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.
14. Marketing Research
The products of Olpers in the
market are
Olper’s lite
Olper’s cream
Dairy Omung
Tarang
Dobala
Olfrute
Omore’
Olper’s milk
Tarrka
Owsum
Al-Safa Chicken
15. Values
Ethics & Integrity
People
Innovation
Community & Society
Consumer Centric
16. Values
Ethics & Integrity
Engro has transparent processes and
open disclosure policy. They are doing
their business activities and
transactions with fairness and honesty.
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.
17. Values
Innovation
Engro always encourages innovation by their people or
from wherever they get anything new. It also boost up the
confidence level.
Community & Society
Engro has always take in measure the safety of their
people or the environment. They always consider it their
responsibility to take care of their employees of local
people so that no havoc could be cause to anyone or the
assets of the community.
Consumer Centric
The basic target of any organization is their costumers.
Engro is delivering quality to their consumers.
18. Segmenting and Targeting the
Market for Olpers
The milk sector has a market that has
homogeneous taste and demand that is the
consumers have similar preferences.
Milk should be clear and free from any
impurities.
It should be carefully processed
Milk should be good for bones and health.
19. Segmenting and Targeting the
Market for Olpers
Olper’s market has been segmented according to
these things. Olpers marketers had a number of
options available to them when segmenting the
market for their products.
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
20. Segmenting and Targeting the
Market for Olpers
Demographic Segmentation
Olpers is meant for all the users in higher upper or middle class
families. Olper’s products are not restricted to any particular
age, gender or lifecycle stage.
Lower class wouldn’t want to buy the brand maybe because
they are price sensitive or because they still believe lose milk is
better than processed milk
Therefore it can be said that Olper’s had a image as a brand for
high income earners. Due to that image it can be said that
Olper’s milk target a specific social class who are health
conscious and concerned about their weight.
21. Segmenting and Targeting the
Market for Olpers
Psychographic Segmentation
Olper’s marketers have segmented the market who are
goal-oriented and focused on their careers, and those who
are looking variety in the milk sector.
For example the ads for Olwell ,focus on achievers who
want to be successful, have high aims and are already
doing quite well in their concerned fields.
Olper’s ads also target believers, traditional conservative
people with concrete beliefs. Olper’s ads show the beliefs
of healthy life with processed milk and plays on the
emotional aspect more.
22. Segmenting and Targeting the
Market for Olpers
Behavioral Segmentation
Olper’s products have been segmented on the basis
of benefits that consumers seek in the milk.
Olpers ads are always based on the theme of family.
Olpers milk can be used in daily life.
Olpers can be used for all purposes like tea
whiteners or to feed the animals.
23. Positioning the Brands
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 Olper’s have decided to create its own unique image and
then strengthen the position in the customer’s minds.
They have done this by taking a number of following steps:
Packaging of Olper’s Milk in red colour 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 those who live life to the fullest, hence its tag line is ….
“jo dil khol kay jeetey hain unheen kay liyay hai Olper’s”
24. Marketing Mix
The process consists of four steps which are
as follows.
Product
Price
Place
Promotion
25. Marketing Mix
Product
Now we see the marketing mix of the successful brand of engro
foods which is O’more.
Core Product
Ice Cream- convenience product!
Actual Product
The brand- Omoré
27 flavors of ice cream in different shapes and quantities.
The product line
Frooze range of cheap ice creams for children
Range of family packs
Range targeted towards teenagers as well as adults.
26. Marketing Mix
The packaging style
Attractive and colorful
Available in various designs: cones,
cups, tubs and bar sticks
High quality level
Meets hygienic and nutritious standards.
Augmented Product
Provides ingredients and nutrition
information on the packaging
Contact information for comments and
queries
27. Marketing Mix
Price
List price
Three different classifications
Frooze (5- 10- 12- 15) Rupees
Range of family packs (150- 120- 105)Rupees
Range of individual ice creams (10-15-20-30) Rupees
Discounts
They also offer discounts for distributors.
Credit Base System
In Pakistan, mostly businesses work on credit base system
and they are also follow credit base system.
28. Marketing Mix
Place
Indirect distribution channel
Intermediaries before the final product reaches to the
customer
Transportation
Company has its own transportation system
Franchises
Increase sales of ice brand awareness
29. Marketing Mix
Promotion
Advertisement
TV Bloopers
Sponsoring of TV shows
Madison an Vine technique
Streamers, Decoration of Lahore, Dropping
pamphlets from planes
Print ads
30. Marketing Mix
Sales Promotion
Free samples at launch
Refrigerators to retailers
Banners and decoration in shops
Public Relations
Omore Basant Event, Lahore
Concerts
31. SWOT Analysis
The word S is for Strengths, W is for
Weakness, O is for Opportunities and T is for
Threats.
It consists on these four which for as follows.
Strengths
Weakness
Opportunities
Threats
32. SWOT Analysis
Strengths
Engro’s Back
Engro has a great brand recognition all over
the world. It has a big brand image in
Fertilizers, IT and Infrastructure business.
PR with Farmers
The main benefit to Engro Foods is its good
reputation among farmers due to fertilizers
which has created a long term relation
between farmers and organization.
33. SWOT Analysis
Positive Response from Customers
EFL had a big success in the very first year, it
crossed 1.4 Billion sales, which showed the
consumers belief and satisfaction with EFL’s
products, for its good taste and quality proposition.
Strong consumer & product research
A strong consumer & product research was
conducted before and after launching the Olpers.
To develop its future portfolios, EFL has hired
various global research partners like AC Nielsen,
Mindshare, JWT Asiatic and MARS marketing and
advertising agencies.
34. SWOT Analysis
Third-Generation Plant
Worldwide fame of Engro.
Efficient milk collection system.
Keeping high quality standards.
Integrated distribution and warehousing facilities.
Successful related diversification.
Generic brand name of Olpers
Large market share of Engro innovative and chemicals.
Having Good reputation in the market by strong brand
name i.e. Engro
35. SWOT Analysis
Weaknesses
Not 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
Low Quality Milk
Engro Foods Ltd don’t have there own milk centers. They collect loose
milk from local farmers.
Packaging
Tetra packs is the only packaging company in Pakistan. Engro is using
Tetra Pack for almost all their dairy products.
Milk collection & distribution costs
EFL’s 34 out of 40 milk-collection centers are located in Punjab, where
as its milk processing facility is situated near Sukkur (Sindh) and
Sahiwal.
Narrow brand portfolio
EFL’s brand consists of just 3dairy products i.e. Olper’s Milk, Olpers lite
and Olper’s Cream. But EFLs competitors Nestle and Haleeb Foods
have a diversified line of dairy products.
36. SWOT Analysis
Opportunities
Increased funding by Government
Government has decided to help the farmers by increasing their
funding
This is also help ENGRO foods because of bad weather conditions
there was lots of wastage of milk
Increased consumption of PLM
They create awareness for consumers through different advertising
media. This will ensure the increase in the consumption of processed
milk instead of lose milk
Awareness
High awareness about health and hygiene issues helps the milk
industry to increase their product by Growing dissatisfaction with
loose milk and increased processed milk consumption.
37. SWOT Analysis
Third largest producer of milk
This is good opportunity for Engro foods as there is lot of growth
in this part of the sector.
Improving Economy
Population growth rate.
High urbanization rate.
High literacy rate.
Flexible government policies for food industry.
Have significant growth opportunities
Has sufficient capital to expand.
Has the potential to innovate and differentiate the company's
products to sustain competitive advantage
May merge with other global businesses to eliminate competitors.
Having Capable of expanding into other markets of the world
38. SWOT Analysis
Threats
Competition
For Olper’s to stable in a market where the loyalties exist for such
brands as Nestle and Haleeb. Such brands captured the milk industry
for a long time and have a strong position in a minds of consumers.
Perceptions and Price Differentials
High inflation rate.
Low purchasing power.
Decrease in GDP growth rate.
Increasing interest rates.
Decreasing investment.
Recessionary period in business cycle
Competition with Nestle, Engro Foods and the new entrants.
Engro foods are currently facing an increase in Sales Tax.