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Submitted toMr. Haroon HafeezMs. SumailaThis Report is a collective work ofFarid Nawaz Khan (MB-06-13)Sana Bucha (MB-06-12...
Table of ContentsAcknowledgements............................................................................................
Placement & Distribution…………………………………………………………………………………………………………………………………. 23Price…………………………………………………………………………………………………………...
ACKNOWLEDGEMENTSFirstly we would thank Allah for giving us the opportunity and the resources to be able todo something pro...
ABSTRACTThis report is about the marketing of Olpers from the time when ENGRO foods came up with theidea of adding a new p...
Milking the MarketIn the recent few months, it seemed that everywhere one looked, there was either a billboard, a TVCor a ...
ENGRO Foods’ HistoryEngro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification processat t...
DEPARTMENTS(1) Administration   Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the jo...
customers. Ensuring regular collection of fresh and pure milk right from the farmer to   the factory and ascertaining the ...
One such company is A.C Nielson that carried out the marketing research for ENGROfoods when the idea of diversifying into ...
Once all the information has been collected, it is further analyzed to extract findings from the data.The researchers used...
Olper’s has been positioned as a brand for high income earners. Due to the income factor involved itcan be said that Olper...
(1) Packaging of Olpers milk and Olwell in red color and Olper’s cream packed in purple color are    quite different and d...
association with Olpers and see it as a premium quality product. ENGRO is world renowned so   it can easily attract foreig...
Weaknesses(1) Olwell TVCOlwell ad which is based on Western life style, ENGRO foods brand managementshowed a man who put o...
(5) Milk collection & distribution costsEFL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only...
for 51 percent of the total value of the sector. Due to the steps taken by the government and privatesector, country’s ann...
or at least keep prices stable. Moreover, packaged milk industry which each year pays millions oftaxes is not being given ...
Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab, becausemost dairy farms are ba...
amendments thereof in any existing rules/regulations/bye-laws/standard in the sector and bringlocal industry in consonance...
Launched on March 20, 2006, Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultraheat treated) milk with 3.5 ...
Olpers is available in 80 cities across Pakistan. It reflects the company’s intention to become a bigplayer in the industr...
Post MortemColor is soothing, caption is great. But the picture of the pastry is not attractive at all, the cream isbarely...
been aggressively promoted which is why customers can recognize it easily. The red color and theshelf space that the brand...
milk. In the same way, Olwell serves the purpose of all is well in terms of customers’ healthTherefore, the choice of bran...
bulk of Company’s contribution budget is spent in and around Daharki. The company hasinterventions in number of areas like...
in the school. Sahara Art & Craft has attracted about 200 females from the surroundingcommunity for training in embroidery...
laboratory, blood collection, pharmacy, patient welfare services, teaching room, patient counselingand a treatment room. T...
ENGROs 40-year-old relationship with the farmer also gives ENGRO Foods another edgeover the competitors.The future plans a...
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Transcript of "Olpers"

  1. 1. Submitted toMr. Haroon HafeezMs. SumailaThis Report is a collective work ofFarid Nawaz Khan (MB-06-13)Sana Bucha (MB-06-12)Adeel Basit (MB-06-69)Faiza Javed (MB-06-63)
  2. 2. Table of ContentsAcknowledgements........................................................................................................................................................................ 6Abstract...............................................................................................................................................................................................7Milking the Market…………………………………………………………………...................................................................................... 8Engro Foods’ History........................................................................................................................................................................... 9Vision................................................................................................................................................................................................ 9Core Values...................................................................................................................................................................................... 91. Administration…………………………………………………………………………………………………………………………………………… 102. Finance and Accounts…………………………………………………………………………………………………………………..…………... 103. Human Resource……………………………………………………………………………………………………………………………………. 104. Marketing…………………………………………………………………………………………………………………………………………….....105. Milk Procurement……………………………………………………………………………………………………………………………………….. 106. MIS…………………………………………………………………………………………………………………………………………………………117. Production……………………………………………………………………………………………………………………………………………………118. Quality Assurance..................................................................................................................................................................... 119. Supply and Distribution………………………………………………………………………………………………………………………………. 11Marketing Research conducted by ENGRO Foods………………………………………………………………………………………….. 11Segmenting and targeting the market for Olpers.…………………………………………………………………………….…………….13Demographic segmentation………………………………………………………………………………………………………………………………13Psychographic segmentation………………………………......................................................................................................................... 14Behavioral segmentation…………………………………………………………………………………………………………………………… 14Positioning the brand………………………………………………………………………………………………………………………………... 14STRENGTHS………………………………………………………………………………………………………………………………………………….. 151. ENGRO’s Back…………………………………………………………………………………………………………………………………………….162. PR with farmers………………………………………………………….………….…………………………………………………………………. 163. Positive response from customers……………………………………………………………………………………………………………. 165. Strong consumer & product research………………………………………………………………………………………………………….. 166. Third-Generation Plant…………………………………………………………………………………………………………………………… 16WEAKNESSES……………………………………………………………………………………………………………………………………………… 171. Olwell TVC………………………………………………………………………………………………………………………………………………… 172. Owning Red Color.................................................................................................................................................................... 173. Low Quality Milk……………………………………………………………………………………………………………………………………174. Packaging……………………………………………………………………………………………………………………………………………….175. Milk collection & distribution costs…………………………………………………………………………………………………………… 176. Narrow brand portfolio……………………………………………………………………………………………………………………………..18OPPORTUNITIES ……………………………………………………………………………………………………………………………………………..181. Increased funding by Government……………………………………………………………………………………………………………..... 182. Increased consumption of PLM………………………………………………………………………………………………………………. 183. Awareness.................................................................................................................................................................................... 184. Third largest producer of milk………………………………………………………………………………………………………………......185. Improving Economy…………………………………………............................................................................................................. 19THREATS…………………………………………………………………………………………………………………………………………………. 191. Competition…………………….………………………………………………………………………………………………………………………. 192. Perceptions and Price Differentials…………….…………………………………………………………………………………………… 19Political/Legal Factors………………………………………………………………………………………………………………………………. 19Economic Factors…………………………………………………………………………………………………………………………………….. 19Socio-Cultural Factors………………………………………………………………………………………………………………………………. 20Technological Factors…………………………………….................................................................................................................. 21Product…………………………………………………………………………………………………………………………………………………… 22Olpers Milk.................................................................................................................................................................................... 22Shipping Units…………………………………………………………………………………………………..……………………………………….. 23Olpers Cream……………………………………………………………………………………………………………………………………………..23Shipping Units………………………………………………………………………………………………………………………………………………23Olwell Hi-Cal Lo-Fat (HCFL) Milk……………………………………………………………………………………………………………………. 23Shipping Units……………………………………………………………………………………………………………………………………………….. 23
  3. 3. Placement & Distribution…………………………………………………………………………………………………………………………………. 23Price………………………………………………………………………………………………………………………………………………………………... 24Olpers Milk.....................................................................................................................................................................................24Olpers Cream………………………………………………………………………………………………………………………………………………….24Olwell Hi-Cal Lo-Fat (HFCL) Milk……………………………………………………………………………………………………………………. 25Promotion & Advertising……………………………………………………………………………………………………………………………. 25Olpers Milk.....................................................................................................................................................................................25Post Mortem………………………………………………………………………………………………………………………………………………….. 26Post Mortem………………………………………………………………………………………………………………………………………………26Olpers Cream………………………………………………………………………………………………………………………………………………….27Post Mortem………………………………………………………………………………………………………………………………………………… 27Olwell Hi-Cal Lo-Fat (HCFL) Milk………………………………………………………………………………………………………………......... 27Post Mortem…………………………………………………………………………………….................................................................................... 28Building customer based brand equity………………………………………………………………………………………………………… 28Measuring customer-based brand equity………………………………………………………………………………………………………… 30Managing customer-based brand equity………………………………………………………………………………………………………….. 30Social Responsibility……………………………………………………………………………………………………………………………………… 30Education Programs………………………………………………………………………………………………………………………………………. 31Katcha Schools………………………………………………………………………………………………………………………………………………… 31Training and Resource Centre………………………………………………………………………………………………………………………… 32Sahara Welfare Society…………………………………………………………………………………………………………………………………… 32Health Programs……………………………………………………………………………………………………………………………………………. 32Free Snake Bite Treatment……………………………………………………………………………………………………………………………… 32Dialysis Centers at Daharki and Mirpur Mathelo……………………………………………………………………………………………….. 32Eye Care Centre……………………………………………………………………………………………………………………………………………….. 33Oncology Unit at Aga Khan University Hospital, Karachi……………………………………………………………………………………33Tele-Medicine Project……………………………………………………………………………………………………………………………………...33Future plans………………………………………………………………………………………………………………………………………………….. 33
  4. 4. ACKNOWLEDGEMENTSFirstly we would thank Allah for giving us the opportunity and the resources to be able todo something productive with our lives. Without His blessings we would not have beenable to come as far as we have.Then our sincere thanks to Mr. Haroon Hafeez for helping us throughout this report. Hisguidelines have been very useful for us in preparing this report. He helped us find newways of being innovative and creative.This report would not have been possible without his cooperation and continuousdirection. We would also like to thank Mr. Farrukh, Regional Sales Officer at ENGRO Foodswho spare sometime for us so that we could conduct the interviews with him. It is true thathis responses in the interview have been very helpful.Last but not the least we would like to thank our families for their incessant support andapproval.
  5. 5. ABSTRACTThis report is about the marketing of Olpers from the time when ENGRO foods came up with theidea of adding a new product line to their already well established and long set of product lines tothe point that they are still heavily promoting their product. We start by giving a brief history aboutOlpers and how it came into existence. We talk about the corporate structure and organizationalhierarchy of ENGRO Fertilizers, its mission statement and the vision. We move further with its goalsthat it has thought about for Olpers and eventually the type of organizational culture of theorganization.We discuss the types of marketing research conducted by the company before introducing it to themarket and how they have segmented its target market and positioned the product in the minds ofthe consumers.We discuss the SWOT analysis in which we talk about the strengths, weaknesses, opportunities, andthreats the organization is facing since its product was launched. Then the PEST analysis isgenerally about how the external factors affect the growth and stability of the product. We movefurther to talk about a variety of marketing strategies employed at different stages of the productlife cycle, that is promoting the product and making consumers aware of Olpers, using the 4 P’s tothe best of their abilities. The report also confers about the role brand equity played in increasingthe sales for Olpers. Firstly, there are the various ways employed by the brand managers tobuild and measure brand equity and once the customers start to accept it then how theyhave managed the brand equity of Olpers. We conclude the report by discussing the socialresponsibilities in which ENGRO Fertilizers is involved and the future plans of the organization forOlpers.
  6. 6. Milking the MarketIn the recent few months, it seemed that everywhere one looked, there was either a billboard, a TVCor a radio jingle promoting a brand of milk– whether it was Haleeb, Nurpur, Pakola, Nirala, or,recently, Olpers.But perhaps this isn’t surprising after all. Pakistan, according to recent statistics, is the third largestmilk producing country in the world (32 billion liters per year from 50 million animals, with urbanconsumption at nearly seven billion liters). However, despite this high ranking, packaged milk, evenaccording to the most optimistic estimates, has a mere four percent penetration. No wonder thenthat processed milk companies (PLMCs) have been rather aggressive in their advertising andmarketing endeavors in an attempt to increase the penetration.Industry experts believe that the current economic turnaround has contributed to the growth in thePLM sector, resulting in increased consumer purchasing power. Another reason for growth is agrowing awareness pertaining to health and hygiene; this factor, coupled with increasingdissatisfaction with loose milk, has also contributed to growth in this sector.However, in order to make a noticeable increase in penetration, many challenges and perceptionsstill have to be overcome by the PLMCs.The least important one, perhaps, is tradition. Milk, even amongst the most urbanized consumers, issynonymous 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 andstraight from the cow. And it is this perception that only loose milk is fresh, and therefore healthyand preservative-free, that has to be overcome, if increased penetration is to occur at a substantialrate. Another hurdle in converting loose milk users to processed liquid milk is price. InPunjab, because most dairy farms are based there, loose milk is cheap at approximately Rs 24 perliter, while processed milk is priced at approximately Rs 38 per liter. In Sindh, however, the pricedifferential 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, theprocessed 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.
  7. 7. ENGRO Foods’ HistoryEngro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification processat the Engro Group. The plant located at Sukkur on 23 acre land, has the raw milk receptioncapability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day. The plant hasbeen 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’svision to pursue growth opportunities based on country fundamentals and own strength. It alsopositions the company to leverage its corporate social responsibility initiatives and work closelywith rural communities to promote integrated farming and livestock development. This effort isexpected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in themilk collection areas.Vision"Our vision is to become a fast expanding mega foods company. To achieve our vision, the companywill initially focus on dairy by investing a substantial amount in plant, milk collection capability andmarketing. We are making concrete efforts to expand in and beyond Pakistan; through strategicinternational alliances, to eventually become global."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.
  8. 8. DEPARTMENTS(1) Administration Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.(2) Finance and Accounts The Finance and Accounting departments 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 ensures that 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 (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of candidates 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. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods.(4) Marketing Consisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the 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. Identifying 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) Milk Procurement As all of our food products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our
  9. 9. 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, consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers.(6) MIS The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Companys accounting software is also the MIS teams responsibility.(7) Production Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards.(8) 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.(9) Supply and Distribution This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.Marketing Research conducted by ENGRO FoodsMarketing research is an important step when a new product is to be launched into themarket. There are many risks associated with that new product and especially when acompany decides to diversify into a completely new market that it was not previouslycatering to. Thus in order to reduce the magnitude of the risks and to be successful,large organizations with a research and development department conducts themarketing research. Even those organizations that do not have a R&D department canconduct marketing research through other companies that are providing the facility ofmarketing research.
  10. 10. One such company is A.C Nielson that carried out the marketing research for ENGROfoods when the idea of diversifying into a new market was introduced. Marketingresearch is the systematic design, collection, analysis and reporting of data to the relevant parties.ENGRO wanted to setup a new fertilization plant but due to certain constraints from thegovernment wasn’t able to do so. Therefore, the organization decided to move into a newmarket. They came up with several options including telecommunications and power plant butthey found out that the food industry held the greatest promise. It was an exploratory research thatis the main goal was to shed light on the real nature of the problem in this case, diversification intoa new market, and to select possible new solutions and ideas such as the food industry.They also went though the list of at least 1,200 names before they decided to introduce Olpers.Olpers is promoted as the milk for all-purposes. The reason for this is that while conductingresearch, they found out that people want milk that could be used for all purposes suchas drinking, tea whiteners etc. Once the brand was introduced the organization wanted to add moreproduct lines to it. Therefore they conducted another marketing research to find out the success ofOlpers.The researchers started off with secondary data that was available. They tried to uncover the levelof complexity involved in such a decision and the magnitude of success. But that wasn’t enough sothey started to collect primary data through the use of different techniques. The first started withsurvey research to understand the people’s beliefs, preferences and core needs that can be satisfiedby introducing additional products. The researchers also conducted observational research toobserve the people in different settings. They used it to find out which brand the people reallybought, where did they take more time in purchase process and where did they look when theywere shopping for grocery. This helped them to see the shelf-space that can be used. They used themethod of shadowing that is they observed people while using the product. They also conductedunfocused groups where they interviewed a diverse set of people to explore ideas about the brandand what more they want in the food sector to be available to people.The researchers conducted questionnaires to find the responses of consumers about Olpers. Theygot a positive feedback from the customers who also encouraged them to invest further and tosetup a new plant in Sahiwal. Through different research methods the organization was also able tofind out the number of loyal of competitors’ brands.
  11. 11. Once all the information has been collected, it is further analyzed to extract findings from the data.The researchers used all types of statistical methods such as frequency distribution to now thenumber of people buying the brand, average and measures of dispersions for major variables. Theyalso applied some decision models for additional findings.After the analysis of data researchers present the findings to the decision makers who pass the finalverdict. Due to the positive responses of consumers, the decision makers decided to go ahead withthe idea of introducing more product lines to the food Olpers brand. It can be said that successfulmarketing research helps the marketers to understand the costumers’ needs that are stillunfulfilled. The two new products of Olpers in the market are Olwell diet milk and Olpers cream.The organization has further plans to expand more in this sector and introduce more productsrelated to milk.SEGMENTING TARGETING AND POSITIONINGSegmenting and targeting the market for OlpersIt is difficult for any one company to engage in mass production, mass distribution andmass promotion for its product. The complexities arise from the proliferation ofadvertising and distribution channels and the high costs associated with reaching a massaudience. Therefore, companies segment the market so that they can target the groupof customers who share similar needs and wants.The milk sector shows a market that has homogeneous preferences that is the consumers havesimilar preferences. They want milk to be white, carefully processed, and good for health andbones. Keeping these things in mind Olpers’ market has been segmented. The marketers at Olper’shave had a number of options available to them when segmenting the market for their products. Sofar company has introduced three new products: Olpers milk, Olwell diet milk and Olper’s cream.Demographic SegmentationOlpers products are not bounded to any particular age, gender or lifecycle stage. The brand ismeant for all the users in higher upper or middle class families. Even though the brand calls for asmall percentage of an individual’s income but lower class wouldn’t want to buy the brand maybebecause they are price sensitive or because they believe lose milk is better than processed milk andhas all the nutrients that the processed milk lacks. However all the companies in the milk sector aretrying to change the image of processed milk as non-nutritionist milk. Therefore it can be said that
  12. 12. Olper’s has been positioned as a brand for high income earners. Due to the income factor involved itcan be said that Olpers milk target a specific social class who are health conscious and concernedabout their weight.Psychographic SegmentationOn the basis of psychographics, factors such as personality traits, lifestyles and values, themarketers at Olpers have segmented the market more towards achievers who are goal-orientedand focused on their careers, and experiencers those who are seeking variety in the milksector. For example the ads for Olwell mostly show achievers who want to be successful, have highaims and are already doing quite well in their concerned fields. The Olpers products have targetedexperiencers because the company has given them a new set of brand and so many will make theirfirst purchase because they want to try something new. Olper’s ads also target believers, traditionalconservative people with concrete beliefs. The ads for Olpers show the beliefs of healthy life withprocessed milk and plays on the emotional aspect more.Behavioral SegmentationOlper’s products have been segmented on the basis of benefits that consumers seek in the milk. Inthis case, people look for a brand that can be used for all purposes from drinking to tea whiteners aswell to feed the animals. The ads also show that consumers should increase their milk consumptionfor example with every tea they should use Olpers, every morning they should drink Olpers andeveryday they should feed their pets with Olpers milk. There may be some hard core loyal in themilk sector. Loyalty maybe towards such established brands as Nestle and Haleeb. There mighteven be switchers and shifting loyal in the milk sectors that are either price sensitive or wantvariety. As a result, the marketers need to find ways to make the hard core loyal attracted to theOlpers brand and shifting loyal and switchers to convert into hard core loyal as well.Positioning the BrandPositioning involves designing the product and image that will occupy a distinctive placein the minds of the target market. As can be seen, nestle milkpak and Haleeb have thelargest profit margins and market share in the milk industry. Thus the marketers at Olpers havedecided 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:
  13. 13. (1) Packaging of Olpers milk and Olwell in red color and Olper’s cream packed in purple color are quite different and distinctive from the typical green and blue packing used by other competitors.(2) 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.”Olper’s always tries to create customer intimacy that is it focuses on satisfying thecustomers’ unmet needs. Processed milk is seen as less lacking all the nutritions that arepart of milk due to passing through so many processes. But Olpers positions itself as milk that hasnot lost its nutrients.The unique selling proposition for Olper’s is: Subah Bakhair Zindagi, but recently the companychanged the USP to: Jo dil khol kay jeetay hain unheen kay liyay hai Olper’s. Both the tag lines havea very positive impact on Olper’s image because of the emotions involved in both the lines.The marketers have used different positioning for Olper’s products:a) They have 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 ads also show attributes of milk such as good for health.b) They used the benefit positioning for Olwell. The product is positioned as delivering the benefit of helping to reduce weight and for healthy bones.c) 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 careand research.SWOT AnalysisStrengths(1) ENGRO’s back Olper’s is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO foods to Olper’s. 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
  14. 14. 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. ENGRO foods 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.(2) PR with farmers ENGRO has been interacting with the farmers for fertilizers and has gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company. This is an added advantage and strength for the company because it will never be short of milk production. The farmers also won’t have to look elsewhere to sell their milk.(3) Positive response from customers In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s products.(4) Taste, Quality Proposition & World-Class Quality Proposition System It’s Taste, Quality Proposition & World-Class Quality Proposition System.(5) Strong consumer & product research Olper’s 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.(6) Third-Generation Plant EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that usesBa c t o fu g e technology to virtually eliminate bacteria and ensure premium quality and hygiene. Moreover, it is also setting up another milk processing plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).
  15. 15. Weaknesses(1) Olwell TVCOlwell ad which is based on Western life style, ENGRO foods brand managementshowed a man who put off his clothes & remain just in his undergarments, or half nudelady in a cat walk or men admiring the figures of a lady in mix gender health club.In this ad they are creating associations with the brand through the stripes, which is ahighlight of Olwell packaging. Half naked people have been shown with tattoos of thesame stripes in order to show that they are loyal consumers of Olwell. Also, the talent,situations and locations connects well with the ad to give Olwell a premium positioning.The brilliant marketing people at ENGRO Foods failed to analyze is that the market theyare targeted the ad on, is Pakistan, where practicing Muslims reside, who have strongreligious beliefs. When making the ad, the brand managers were focused on, making anad that should give the brand the most premium look and feel amongst the targetconsumers but on the other hand they were least bothered about the ethics, religiousbeliefs and cultural values.(2) Owning Red ColorThe company has not owned the color red like Nestle has a green Milkpak; Haleeb has ablue carton etc. This may create problems because when a consumer enters a groceryshop, then he/she might have problems in recalling the brand because there is no color associationattached to Olpers. The company may need to find a suitable color in which to focus its upcomingmarketing strategies.(3) Low Quality MilkEFL is not having its own dairy farms; it largely collects loose milk from farmers & gwalasthrough its 40 milk collection centers, which sometimes is of low quality and impurebecause they add vegetable oil to milk to get higher prices.(4) PackagingEFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the onlyoption available to Olper’s for packaging because it is having monopoly in the packaging sector inPakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the productioncosts.
  16. 16. (5) Milk collection & distribution costsEFL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk processingfacility is situated near Sukkhur (Sindh). It increases the milk collection & distribution costs; andalso increases the chances of milk getting spoiled because of increased travelling time.(6) Narrow brand portfolioIt has been more than a year now, when EFL launched its first dairy product, Olpers Milk onMarch20, 2006. But EFL’s brand portfolio still consists of just 3 products i.e. Olpers Milk, OlwellMilk and Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a muchdiversified line of dairy products.Opportunities(1) Increased funding by GovernmentGovernment has decided to increase farmers’ funding. This is an opportunity for ENGRO foodsbecause previously due to weather conditions and other reasons there was lots of wastage of milkbut now that can be reduced as farmers will be better able to store milk for longer time periods.(2) Increased consumption of PLMCompetition may create opportunities for the company because each competitor in themilk industry wants to increase penetration of processed liquid milk and so they willcreate awareness for consumers through different advertising media. This will ensurethe increase in the consumption of processed milk instead of lose milk and so will in turnlead to increase in sales for the company. Therefore there will be an opportunity foraccelerated growth.(3) AwarenessGrowing dissatisfaction with loose milk and increasing awareness about health and hygiene issueshave led to increased processed milk consumption.(4) Third largest producer of milkPakistan is the Third largest producer of milk in the world with a total production of 32billion liter of milk a year, whose value is more than that of the combined value ofwheat and cotton, from a total herd size of 50 million milch animals (buffaloes andcows). Livestock accounts for 46.8 percent of agricultural value added and about 10.8percent of the GDP. Milk is the largest commodity from the livestock sector accounting
  17. 17. for 51 percent of the total value of the sector. Due to the steps taken by the government and privatesector, country’s annual milk production is expected to grow at an additional 3 billion litres in thenext few years. This is quite an opportunity for ENGRO foods as there is lot of growth in this part ofthe sector.(5) Improving EconomyThreats(1) CompetitionCompetition may pose a threat because the company will have to maintain its leadership in anexpanding market so that it doesn’t lose its market share to its competitors. For Olper’s it might bedifficult 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 ofconsumers in terms of quality. Competition seems to be getting tougher as a result of new playersentering the dairy market.(2) Perceptions and Price DifferentialsConsumers’ perceptions and price differentials can cause a threat for the company. It is importantthat Olpers comes up to the expectations of the customers and fulfills its conformance quality that isthe company meets its promised specifications. Consumer’s preferences change with time andprices might create certain barriers in terms of the profit margins for Olper’s. For example, losemilk is still cheaper than packaged milk and that is also one factor that people still prefer to buylose milk.PEST ANALYSIS“When the rate of change inside the company is exceeded by the rate of change outside the company,the end is near.” (Jack Welch, former Chief Executive Officer of General Electric)POLITICAL/LEGAL FACTORSEconomic FactorsInflation rate of Pakistan for the current fiscal year has grown to 7 percent. This thing isreally hurting the purchasing power of Pakistani consumers. PLM which is alreadyconsidered as more costly compared to open milk is becoming out of reach of generalpublic. As a result, there is an increased pressure on PLM companies to either decrease their prices
  18. 18. or at least keep prices stable. Moreover, packaged milk industry which each year pays millions oftaxes 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 foodsector and plans to increase investments by the already established companies. Nirala, good milk,Pakola are 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 haveeven acquired lands to start their business. Leading industrial groups such as Jamal Din Wali SugarMills, Dewan Group of Industries and Shakar Ganj Sugar Mills have already made substantialinvestments in dairy & livestock sectors. In March this year, Nestle Pakistan opened a state-of-the-art milk processing facility in Kabirwala, Punjab. The plant, Nestlé’s largest milk reception facility inthe world has a processing capacity of 2 million litres of milk per day.Socio-Cultural FactorsIn order to make a noticeable increase in penetration, many challenges and perceptions still have tobe overcome by the PLMCs. The least important one, perhaps, is tradition. Milk, even amongst themost urbanised consumers, is synonymous with the early arrival of thed o o d h w a la (milkman) attheir home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression that themilk is fresh, natural and straight from the cow. And it is this perception that only loose milk isfresh, and therefore healthy and preservative-free, that has to be overcome, if increasedpenetration is to occur at a substantial rate. Over the years, all PLMCs, but especially the two olderplayers, Nestle and Haleeb, as well as Tetra Pak (the company that packages the processed milk)have been making active efforts to convince loose milk users to switch to processed milk. In the lastsix years, Tetra Pak has launched three major campaigns aimed at changing consumer perceptions.Last year, Tetra Pak’s third campaign, Wohi Dhoodh Aur Kya? (Milk, What Else?) addressed themisconception that processed and packaged milk has preservatives. The campaign talked about thebenefits of Tetra Pak’s six-layered packaging material and innovative technology that keeps milksafe for a long time. 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 time in a TetraPak carton. Despite these marketing endeavors, perceptions cannot change overnight; this requirespatience and continuous investment to educate consumers on the benefits of packaged milk. Everyproduct’s lifecycle consists of an introductory phase, growth phase and maturity phase. It takestime to change attitudes, especially in a culture where the concept of fresh milk is healthier option.
  19. 19. Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab, becausemost dairy farms are based there, loose milk is cheap at approximately Rs 20 per liter, whileprocessed milk is priced at approximately Rs 38 per liter. In Sindh, however, the price differentialbetween 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 haveintroduced smaller packages to cater to consumers with limited cash flows, although there is aconvenience factor at play here as well.Technological FactorsIn year 2005, the Ministry of Industries and Production established Dairy PakistanCompany on the lines and model of Dairy Australia. The main objectives of the companyare as under:a. To promote milk and other value added dairy products in the domestic as well as internationalmarkets.b. To promote development and up-gradation of dairy supply chain in Pakistan bysupporting and facilitating the farmers, processors and other stakeholders acrossthe value chain.c. To support dairy sector growth by way of supporting and facilitating business developmentservices for the enterprises across the dairy value chain.d. To initiate and support interventions across the dairy value chain to enhance sectorcompetitiveness through innovations and research.e. To promote technology development, transfer, assimilation, streamlining, acquiring and/or up-gradation across dairy value chain by undertaking new initiatives.f. To help introduce international best management practices for better productivity andoperational efficiencies.g. To promote training and skills development of human resources associated with the dairy sector.h. To help create enabling/supporting/conducive business environment for enterprises operatingin the dairy sector and propose new rules/regulations/bye-laws/standards for providing a levelplaying field and conducive regulatory environment for the development of sector and propose
  20. 20. amendments thereof in any existing rules/regulations/bye-laws/standard in the sector and bringlocal industry in consonance with international standards.Different initiatives taken by the company, so far, to bring about a White Revolution in the countryare:a) Farm Cooling Tanks Loan SchemeA mechanism for the operation of Farm Cooling Tank Loan Scheme has beenproposed and guidelines are being developed for applicants. They will includestandards for quality and hygiene for installation of the tanks and also details onthe testing of the milk being received for composition and quality.b) Model FarmsThe targets for this project are to establish 50 farms by the end of June 2006 and100 by the end of 2006. An Australian consultant is currently visiting Pakistan forthis purpose. First 14 farms in Okara, Punjab have been formally established asmodel farms. These farms are generally of medium size and all supply to Nestle.One model farm has been established in Sindh. Efforts have been made toidentify clusters of farms to be established as model farms at stage two. It isproposed to work with one group of small farmers who are currently part ofIdara-e-Kissan / Halla and a further group of farmers in Sindh who currentlysupply to Engro. In stage three, it is proposed to identify further farms withprobable extension of the programme to NWFP.c) Other Policy InterventionsDraft Quality Standards are being worked on by a SWOG group who has providedthe first draft paper for discussion with stakeholders. It is necessary to open adialogue with PSQCA, PSI and other interested parties to progress theestablishment of Food Safety Standards. Work is also being undertaken toestablish a case for zero rating Dairy Products for sales tax.ProductOlper’s Milk
  21. 21. Launched on March 20, 2006, Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultraheat treated) milk with 3.5 % fat and 8.9 % solid non-fats. It is EFL’s premier brand, and the choiceof quality-conscious consumers who only go for the best. It is available in easy-to-open, 6-layeredTetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.Shipping Units 1 Litre (1000 ml ) : 12 packs per carton ½ Litre (500 ml) : 12 packs per shrink-wrapped tray ¼ Litre (250 ml) : 27 packs per shrink-wrapped trayOlpers CreamThe premium cream processed hygienically from pure fresh milk, Olpers Cream is luxuriously richin its thickness & nutritional value. It promises the richest & scrumptious assortment of temptingtoppings, delicious desserts and creamiest coffee with its unique taste, also great for eating withbread etc. It was launched on September, 2006 and comes in 6-layered Tetra Pak Brick asepticpurple color packaging with 6 months shelf life.Shipping Units ¼ Litre (250 ml) : 27 packs per shrink-wrapped trayOlwell Hi-Cal Lo-Fat (HCFL) MilkLaunched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the richness of puremilk. It is an ideal choice for weight-watchers and heart patients. It is also high in calcium content,which prevents osteoporosis. Packed in 6-layered Tetra Pak Brick Aseptic red packaging with easy-to-open plastic cap, it comes with a 3 months shelf life.Shipping Units 1 Litre (1000 ml ) : 12 packs per carton ½ Litre (500 ml) : 12 packs per shrink-wrapped trayPlacement & DistributionAccording to Mr. Ali Akbar, Director Marketing EFL, “in order to succeed, you should alwayscapitalize on your strengths and never on your competitor’s weakness!”Engro Foods did exactly that. They used their decades of PR with farmers and used it to provideworld-class supply-chain management for delivering the ultimate quality milk in Pakistan. Havingkicked off simultaneously in 20 cities across Pakistan, the launch has been ambitious and currently
  22. 22. Olpers is available in 80 cities across Pakistan. It reflects the company’s intention to become a bigplayer in the industry, both on a national and international level.Engro Foods Limited has its own dales and distribution network. EFL has divided Pakistan into fiveregions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan. Due to anappealing color scheme, which stands out in the clutter and thanks to the EFL’s strong relationshipbuilding and special discounts to retail outlets, Olpers has gained a proper shelf placement in thepresence of competitors like Nestle and Haleeb.PriceEFL IS pursuing the competitive pricing strategy for its products. In competitive pricing the price ofthe product is determined considering the price of major competitors like Nestle, Haleeb etc.OLPERS MILKPromotion & AdvertisingOlper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) isconcerned, with TVCs, print ads, radio commercials, billboards and plenty ofBTL (below the line) activities including direct consumer and shop branding activities.Due to this aggressive marketing campaign, the competition seems to be gettingtougher. This can be gauged from the fact that Nestle re-launched its product packaging andmarketing campaign just before Olper’s launch. One can also a far greater number of milkadvertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle.Olpers MilkMedia mix for Olper’s milk includes TV, print, outdoor, radio & BTL activities. Olpers considersradio still an effective medium because A & B house wives still listen to the radio on a daily basis.Post MortemGraphics of the ad are excellent except the body copy which is quiet overloaded with information.TVC however, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only3 seconds of branding! This type of advertising has never been practiced in Pakistan. Usingcelebrities like Shan is not a good option as he has already developed his association with Mobilink.But overall Olper’s has done a great job in designing and executing its ad campaign.
  23. 23. Post MortemColor is soothing, caption is great. But the picture of the pastry is not attractive at all, the cream isbarely there. It should be mouth watering picture of a desert with lots and lots of cream on top.Lifes a dessert is a boring statement. If you are a creative team, you can for sure come up withsomething new and fun!Post MortemThe brand is positioned rather too narrowly towards SEC A. Nestlé’s NesVita andCalcilock campaign was closer to a normal Pakistani consumer. Secondly, there arecertain boundaries and cultural values that should be respected. Olwell ad is too muchfor me to digest and I have no options but to switch the channel. Engro has over done it and to makethings worse it’s not as clear and well communicated as NesVita was.Building customer based brand equityBrand equity can be defined as the effects that marketing activities have on a particularbrand. There are different types of brand equity but the one that the marketers aremost concerned about the customer-based brand equity. Customer-based brand equityis an important element that marketers have to keep in mind before marketing anybrand. There are different ways of building, measuring and managing customer-basedbrand equity.Once the brand is introduced into the market it is important to build brand equity. This helps toimprove sales and has long term benefits. ENGRO, although a separate name from Olpers has a verystrong impact on the sales of Olper’s. People know ENGRO because of its well establishedreputation in fertilization sector. Therefore, they hold a strong association in their minds for Olper’sas well. There are different nodes that connect ENGRO to Olpers in the customers’ minds. The adsfor Olper’s do not show any link with ENGRO foods but the HR managers keep mentioning ENGROin every press release of Olpers that is how people have associated Olper’s with ENGRO.The sales figure for the first eight months of Olper’s launch showed a number in billions. This isevidence that people have accepted the brand and liked it. Thus marketers have been successful increating customer-based brand equity for Olper’s. This could be due to strong associations withENGRO in the minds of customers. Due to just a few brands in the milk sector it is easier forcustomers to make different associations for each brand in their minds. Therefore, a person’s abilityto recognize and recall a brand under a given set of product categories becomes easier. Olpers has
  24. 24. been aggressively promoted which is why customers can recognize it easily. The red color and theshelf space that the brand commands make it even more prominent from the rest of the brands.Although Olpers product related attributes, such as white color, hygienic and processed milk, arequite similar to other brands such as Nestle and Haleeb, while the non-product related attributessuch as the packaging of red color and usage imagery that is portrayed in every advertisement ofOlper’s, can be distinguished from the competitors’ brands. Olpers is promoted with the viewpointthat the milk is meant for all-purposes. This obviously shows the usage imagery of the brand. Whenit comes to the benefits that customers look for in milk are clean processed milk that is good forhealth and can be used for all purposes. Olpers provides its customers with functional andexperiential benefits. The functional benefits include healthy bones, high calcium, good taste, whileexperiential benefits are that every morning starts with Olpers milk that is the tag line subahBakhair Zindagi.Other experiential benefit is the variety that has come into the milk sector due to another brandentering the market. People can now choose from a number of brands for milk and especially thevariety seekers will definitely want another brand to enter the market. If, in the beginning,consumers are not willing to buy the brand then it might be due to such factors as low involvementin that product category or due to brand loyalty towards brands like Nestle and Haleeb. However,the color of packaging in the grocery stores may attract customers enough to make them buy it,thus the brand attitude In this case helped the brand to form the basis for customerbehavior. Olpers has favorable, strong and unique brand associations in customers’ minds.It is favorable because milk is a need and clean hygienic milk that is free of bacteria and germs iswhat conscious customers are looking for. Due to awareness about health and drawbacks of losemilk the customers are further in search of processed milk. The association is also strong becausethere is a very string cue linked to Olpers and that is ENGRO foods. Usually people thin Olper’s as asub brand of ENGRO foods. Due to this reason customers perceive Olpers’ as a high quality brandthat will come up to their expectations.Olpers has created a unique image through its ads. For example, the ad for Olwell is one that isexclusive and cannot be forgotten. Due to such positive brand image, Olpers enjoys higher profitmargins and increased marketing communication effectiveness.Olpers itself is a very distinctive name that is easy to remember and one that will stay in thememory for a long period of time. It even serves to enhance the image of the brand as all-purpose
  25. 25. milk. In the same way, Olwell serves the purpose of all is well in terms of customers’ healthTherefore, the choice of brand identity when building the brand equity has been very good. Thesecreate brand recognition and recall all at the same time.Olpers has been developing marketing programs to enhance brand awareness initially. Due tofamiliarity with ENGRO foods, Olper’s did not have much difficulty in building the customer-basedbrand equity. Thus ENGRO can also be seen as a secondary association for Olpers and one that hasstrongly influences the positioning of Olper’s. It has added to the credibility of Olpers.Measuring customer-based brand equityHR managers used questionnaires to find how customers feel about the brand. They used theindirect approach with different qualitative and projective techniques (the questionnaire containedsome questions related to sentence completion and brand personality description). They used thisto understand customers’ feelings for the brand. The managers agree that ENGRO Foods has helpedimprove the image for Olper’s. They assessed the leverage of secondary associations in this case bycomparing the company’s characteristic with the characteristics of Olpers.Managing customer-based brand equityThe organization is managing the customer based brand equity because they realizethe significance of marketing activities and their effect on creating more value for the brand, and soby influencing brand knowledge, sales can be improved. Olpers is concentrating on the emotionalaspect in their ads in order to focus on the core need of customers that can be satisfied. Olpers hasalso funded Women’s exhibition in Karachi a few months ago and currently is sponsoring cricketWorld Cup 2007, and further adding more value to the brand and managing customer-based brandequity.Social ResponsibilityCorporate Social Responsibility is at the heart of ENGRO’s work. We believe in working with all thestakeholders to improve their quality of life, in a way that is both good for business anddevelopment. We also believe in earning the trust of our stakeholders by acting responsibly withinthe communities that we serve. To help achieve these goals, the company has been making sizeablecontributions for various CSR projects. ENGRO’s urea manufacturing site is located in Daharkidistrict Ghotki. It operates in Daharki for past 40 years now. Since the company has grown from thissingle manufacturing facility to a truly diversified corporate entity, it owes a lot to Daharki.The company’s commitment to this part of Sindh is evident in its social development projects as the
  26. 26. bulk of Company’s contribution budget is spent in and around Daharki. The company hasinterventions in number of areas like education, health, environment, sports, and infrastructuralimprovements.Education ProgramsGhotki district ranks among the lowest on social indicators. Particularly, the scenario of educationis less than desired. The literacy rate is mere 28.65%. Literacy rate is heavily skewed betweengenders with 44.2% and 11.85% of male and female population being literate respectively.Keeping in mind the above scenario, ENGRO has taken an integrated approach and have number ofinterventions at different levels. Pillars of its intervention in educational sector are quality,community and gender participation. Ali Institute of Education, Lahore and The CitizensFoundation are the major partners of ENGRO in educational interventions. A brief description of theeducational projects led by ENGRO is as follows:Katcha SchoolsThe program started off as an informal education program in Katcha (riverine) area of Indus inGhotki district with 2 schools in 2001. The program gradually grew in its reach and as of now, atotal of 11 schools are operating with an enrollment of more than 850 students and 18 full timetrained teachers.On infrastructure front in this area, ENGRO has leveraged its contribution with USAIDand district government funding by constructing proper school structures at fourlocations.Training and Resource CentreTraining and Resource Centre is the only teachers training facility in Ghotki district. Sinceits inception in 1999, more than 2500 teachers of Ghotki district have been trained atthe centre. A team of 4 full time PDTs carryout general and subject specific trainingsessions.Sahara Welfare SocietySahara Welfare Society, a non-profit voluntary organization managed by companyemployees at Daharki, runs a primary school, vocational training school and a free clinic.About 200 students from underprivileged segment of the society get quality education
  27. 27. in the school. Sahara Art & Craft has attracted about 200 females from the surroundingcommunity for training in embroidery and dressmaking since its inception in 2003.Health ProgramsGeneral availability of health facilities is less for growing population of Ghotki district. With thisview ENGRO has developed a number of health infrastructural programs.Free Snake Bite Treatment:ENGRO offers this unique program as a part of its health services initiatives where snake bite casesare treated free of cost. In 2005, free snakebite treatment has been provided to record 5,000victims at companys 24-hours 7-day clinic at plant site in Daharki. Since inception of program in1977, more than 62,000 patients have been treated. Since this is the only center in the 400 KMproximity, people from far flung areas are brought to this center for treatment and administrationof Anti Snake Venom (ASV).Dialysis Centers at Daharki and Mirpur MatheloResponding to the President of Pakistan and local government’s desire for enhanced corporatesupport for Ghotki and surrounding areas, company constructed its seconddialysis centre at District Head Quarter Hospital Mirpur Mathelo in 2004, at a cost of Rs3.5 million. The center has been operational since June 2005 and since thenapproximately 75 dialyses have been carried out. Dialysis Center in Daharki, established in 2001 atRHC Daharki, has successfully handled 2400 cases so far.Eye Care CentreEstablished in 1999 at a cost of Rs. 5 million, the Eye Care Center at Daharki has so far treated morethan 45,000 patients for various ailments. In addition more than 4,000 surgeries including IOLimplants, have taken place at the centre.Oncology Unit at Aga Khan University Hospital, KarachiOncology unit at Aga Khan University Hospital, Karachi, has been completed with the generoussupport of the company. The facility was inaugurated by His Highness the Aga Khan on 2 December2005. The Ibn Zuhr Building of Oncology has a gross area of 42,454 square feet, spread over sixlevels. It houses two radiotherapy linear acceleration (LINACs) machines and a simulator;brachytherapy used in the treatment of prostate and other cancers; and dosimetry for thecalculation of appropriate radiation dosages for different treatments. The unit houses facilities like
  28. 28. laboratory, blood collection, pharmacy, patient welfare services, teaching room, patient counselingand a treatment room. The facility has 24 chemotherapy stations, two procedure rooms and fourprivate beds.Tele-Medicine ProjectThe Company initiated work on the first Telemedicine project in 2004 that provides delivery ofhealth care services to selected rural areas from specialist doctors in Karachi using communicationtechnologies for diagnosis, treatment and prevention of diseases. The facility includes electroniconline transmission of X-rays, Electro Cardio Grams and patients live heartbeats for real timeconsultation by experts. Videoconferencing and image transfer facility has also been providedbetween Hub and the Spokes. The project has been commissioned at two locations. The specialistsat Karachi Hub examine patients referred to them electronically from Gambat Institute ofMedical Sciences and from Shikarpur District Hospital. 5-10 teleconsultations are being made eachday.Future PlansEngro Foods Limited (EFL) announced its vision to emerge as a global player in the food industrywith a proposed initial spending of over $200 million. The vision announced at a press conferencein Karachi aims at transforming the company within the next five years into first national foodindustry giant, then into a regional force and finally into a global player. For the year 2007, theBoard of the Company has already approved Rs 2.0billion investments in capacity expansion andmarketing, including setting up of a plant in Central Punjab.While unfurling its future plans, ENGRO Foods CEO Sarfraz Rehman stated, "Our vision isto become a fast expanding mega foods company. To achieve our vision, the companywill initially focus on dairy by investing a substantial amount in plant, milk collection capability andmarketing. We firmly believe that there is a big dairy opportunity available and with our strongentry in UHT milk category, with Olpers milk, we have placed ourselves ahead of others in terms ofquality and consumer-understanding. It is our belief that we can get the maximum out of thisopportunity by focusing on innovation and quality."– Press Release"ENGRO Foods is making concrete efforts to expand in and beyond Pakistan; through strategicinternational alliances, our vision is to eventually become global."He said that dairies have entered the market in the past but failed due to lack oftechnical expertise and financial soundness. Elaborating further, he mentioned that
  29. 29. ENGROs 40-year-old relationship with the farmer also gives ENGRO Foods another edgeover the competitors.The future plans also include as ENGRO Foods coming up with new products / brands toexpand its portfolio in the dairy industry. The company will be launching new brands invarious dairy categories after completing solid consumer and product research. Thecompany has already hired various global research partners to develop its futureportfolio.The company also plans to encourage women in the companys workforce, especially inthe milk collection areas, thus contributing to poverty alleviation. The company isalready working with several NGOs and agencies and has recently signed anunderstanding with UNDP to initiate a womens veterinary workers programme inaddition to signing a micro-financing model for dairy farming with Pakistan PovertyAlleviation Fund (PPAF).Conclusion

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