1. MID TERM PROJECT ON
ENGRO FOODS
Subject: Marketing Management
Submitted to: Mam Fazaila Qazi
Submitted by: Anum Perwaiz (140051)
Mehwish Kiran (140053)
Saud Amjad (140055)
Kamran Naeem (140057)
Dated: 28th November 2014

2. Introduction:
Engro Corporation is a public company based in Pakistan. Engro Corporation limited is one of
Pakistan largest Congloramate with businesses ranging from fertilizers to power generation.
Currently, Engro corporation portfolio consists of diversified businesses which include chemical
fertilizers, food, beverages, power generation, and petro chemical.
Engro food limited was officially launched as a fully owned subsidiary of Engro in 2004.Using
diary as a stepping stone to enter into the food business, the company has established state of
the art processing unit in Sahiwal and shukkar, along with an ice cream production facility in
Sahiwal.
It start its operation in major players in food industries. They launch multiple products like
milks, ice creams, fruit juices, milk powder, flavored milk, Lassi.
 Vision:
“Aims at transforming the company within the next five years into first a national food industry
giant, then into regional force and finally into a global player”
 Mission:
“Build branded food business to improve quality of life by offering tasty, affordable and highly
nutritional products to our consumers while maximizing stakeholder’s value”
Marketing 4P, s of Engro foods:
 Product:
Engro foods offer a wide variety of product that comprises of food, health and nutrition
products to meet the customer needs. Engro foods offer its products in the following category
like milks, ice creams, fruit juices, milk powder, flavored milk, lassi.
 Price:
Engro foods limited is pursuing the competitive pricing strategy for its products. In competitive
pricing, the product price is determined considering the price of major competitor like Nestle,
haleeb etc.
The prices are fixed on a reasonable scale so that majority of public can afford.
 Place:
Engro foods products are available on every small/ large and medium sized retail outlet, Stores
and marts all over Pakistan.
 Promotion:

3. Engro foods advertise its products through personal selling and electronic media like eye
catching and colorful ads through television, bill board, sponsorship and event promotion.
Department
1- Administration:
Efficient management of all administrative affairs of Engro foods limited
is the job of the administrative department. From legal matter to the general day-to-day
operations of the office, the administrative department ensures that all affairs run
smoothly.
2- Finance and Account:
The finance and accounting department 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 ensure that each and 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 limited spearhead
there recruitment process to ensure that the finest human resource is taken on board at
engro foods. Resumes of candidate 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.
4- Marketing:
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. Identify the target markets, effectively
communicating to them and building the image of the brands as well as the companies,
is the job of the professionals running the marketing at Engro Foods.
5- Procurement:
As most of Engro food products are milk based the entire milk
procurement department play 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.
6- Management Information System:

4. The management information system at engro foods
ensure that all automation is running error- free at all times. Regularly modifying and
updating the company’s accounting software is also the MIS team’s responsibility.
7- 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.
Market Analysis
Targeting:
It is difficult for any company to engage in mass production, mass
distribution and mass promotion for its product. The complexities arise from the
advertising and distribution channels and the high cost 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 Engro foods market has been segmented and target those
segment. The marketers at Engro foods have had a number of options available to them
when segmenting and targeting the market for their products.
Segmentation
Demographic Segmentation:
Engro 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. Due to income factor involved it can be said that Engro foods target a
specific social class who are health conscious and concerned about their weight.
PsychographicSegmentation:
On the basis of psychographic factors such as personality
traits, lifestyles and values, the marketers at Engro foods have segmented the market
more towards achievers who are goal oriented and focused on their careers and
experiences those who are seeking variety in the milk sector.
Olper’s ads also target believers, traditional Conservative people with concrete beleifs.
The ads for Engro,s show the belief of healthy life with processed milk and plays on the
emotional aspect more.
Behavioral Segmentation:

5. Engro,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 as to feed the animals.
Positioning:
The marketers at olper,s have decided to create its own unique
image and then strengthen the position in the customer’s mind. They have done this
through
 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 color used by their competitors.
 Marketers 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 cream is positioned as good for a specific use. In this case the cream can be used
to make cake and deserts.
SWOT Analysis
Strength:
 Personal relation with farmers:
Engro has gained a good reputation among the farmers. The farmers
get the opportunity to sell their milk to the industry and to supply them milk which is an
advantage and strength of engro.
 Positive response from Customers:
In first year of its launch it got customer attention
and also got them satisfied by the quality and taste.
 Strong consumer and market research:
The industry has done a very strong research regarding the
consumer and the product before launching their product. Olpers done a strong
consumer and product research before and after launching the product.
Weaknesses:
 Low Quality Milk:
As Engro foods limited is not having its own dairy farms has to collect
milk from different farms, it collects milk from 40 different centers which might be
sometimes of low quality as you cannot trust any other if you are not having your own
farms.
 Packaging:

6. As tetra pack is the only option available to olpers because it is having
monopoly in the packaging sector in Pakistan. Which must cost them high and it might
increase the production cost.
 Narrow brand Portfolio:
It also has a drawback that it has narrow portfolio as compared
to the other companies like Nestle and haleeb foods having a much diversified dairy
product line.
Opportunities:
 Increased funding by government:
As the government has given notice about increasing
the funding for farmers which might be an opportunity for the farmers to better able to
store the milk for longer period of time.
 Awareness:
As the literacy rate is increasing the awareness about health and hygiene
issues might increase so by advertising Engro might led to increased processed milk
processed.
Threats:
 Competition:
Engro foods have already exist competitors like Nestle and haleeb.
Eliminating competitors might be difficult for the company because these brands are
there in the industry for long time.
 Perceptions and Price differentials:
A threat to the company might be the consumer’s
perception and the price differential. It is very important that the Olpers must come up
to the expectations of the consumer so that they migsht pay the demanded price of
their product.