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Research Completion Certificate
It is certified that the research work contained in this project titled “Procter & Gamble” has been
carried out and completed by Ahmed Abbas, M.Umer Illyas, Mujahid Majeed and Naqash Khalik
& mujtaba tariq under our supervision during our Bachelors of Applied Accounting.
Project Supervisor’s Signature
Date: ____________________
_________________
(Prof. Ayesha Malik)
_________________
Prof. Muhammad Azhar Ikram Ahmad
Dean
Faculty of Commerce
University of Central Punjab
Lahore.
Undertaking
I certify that the research work titled “Engro Food in Pakistan” is my own work. The work has
not been presented elsewhere for assessment. Whenever the material has been used from other
sources in the project, it has been properly acknowledged / referred to the original author.
Signature of Student: ________________________
Name of Student: ___________________________
Registration Number of Student: _______________
Signature of Student: ________________________
Name of Student: ___________________________
Registration Number of Student: _______________
Signature of Student: ________________________
Name of Student: ___________________________
Registration Number of Student: _______________
Signature of Student: ________________________
Name of Student: ___________________________
Registration Number of Student: _______________
Certificate of Examiners
Certified that the quantum and quality of the research work contained in the project titled “Engro
Food” is adequate for the award of degree of BS Applied Accounting.
Internal Examiner External Examiner
Signature: ________________ Signature: ________________
Name: ___________________ Name: ____________________
Date: ____________________ Date: _____________________
Dean of Faculty
Signature: ________________
Name: ___________________
Date: ____________________
-
Group members:
AHMED ABBAS L1F11BSAA0048
NAKASH KHALIQ L1F11BSAA0035
UMER ILYAS L1F11BSAA0045
MUJAHID MAJEED L1F11BSAA2005
Mujtaba tariq L1F11BSAA2026
ACKNOWLEDGEMENT
Firstly, we would like to thank Allah for giving us the opportunity and the resources to be able to
do something productive with our lives. Without his blessings we would not have been able to
come as far as we have.
Then we would like to give our sincere thanks to Ma’am Ayesha for helping us throughout this
project. Her guidelines have been very useful for us in preparing the report. She helped us find
new ways of being innovative and creative.
This report would not have been possible without her cooperation and continuous direction.
Vision statement
“Promoting growth of communities around Engro’s supply chain and giving
people equal access to choices, opportunities and ability to exercise their rights”
Engro Foundation brings realization to the dreams of our people to make a difference in lives of
those around us. We believe in the power of Pakistan’s human capital to change the face of
communities and economies and make them agents of a wider change.
Abstract
Engro Foods Pakistan
The local flavor with a global vision
Engro Foods is among the biggest and fastest growing companies in Pakistan with a vision to
cater to local needs with products conforming to global standards.
Highly passionate about providing millions of people across the length and breadth of Pakistan
and beyond with the ultimate brand experience, our product portfolio comprises some of the
country's biggest and best selling brands including Olper's, Olper's Lite, Omore, Dairy Omung,
Olper's Lassi and Tarang.
But whether it is our thick, creamy all-purpose milk, scrumptious ice-cream high on nutrition
content or refreshing range of beverages, our approach remains largely the same as we strive to
keep product innovation at the forefront of our guiding philosophy and consumer satisfaction at
the heart of our operational strategy.
And that is precisely what enables us to progress as Pakistan's premier foods company delivering
top quality products infused with a local flavor and a global vision.
My sought to choose this organization.
Engro food is one of the most popular and developing industry of Pakistan. Engro foods making
competitors.
Introduction
Engro chemical Pakistan Limited is the second largest producer of Urea fertilizer Pakistan. The
company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until
1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity
of 75% shares in existent company. The employees of Engro, in partnership with leading
international and local financial institutions bought out Exxon’s equity and the company was
renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the
Stock Exchanges of Karachi, Lahore and Islamabad.
The principal activity of the company is manufacturing, purchasing and marketing of fertilizers.
The company is also involved in the production and marketing of seeds and has invested in joint
ventures engaged in chemical related activities. As part of its diversification strategy, controlling
interest was acquired in a company offering industrial solutions in automation and control. A new
milk plant has been established at Sukkur the milk is branded as Olpers.
BRIEF INTRODUCTION OF ENGRO FOOD LIMITED:
Engro Foods Limited (EFL) has been established in 2005 as part of a diversification process at the
Engro Group. EFL is a 100% Subsidiary of Engro Chemical Pakistan Limited. The plant located
at Sukkur on 23-acre land, has the raw milk reception capability of 300,000 liters per day and UHT
milk capacity of 200,000 liters per day. The plant has been established at a cost of Rs. 1 billion,
which provides direct employment to 750 people. Engro Foods has entered the Food business
through milk processing and sale with the company’s vision to 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. Engro Foods will
work with the Pakistan Poverty Alleviation Fund and its three partner organizations to help
implement sustainable business models that increase farmer’s profitability and develop a positive
social and business climate for growth and expansion of livestock and other forms of value added
agriculture.
ENGRO FOODS LTD:
Founded in March 2006, Engro Foods Limited is a producer and marketer of dairy products. The
company’s brands include Olpers Milk, Omore ice cream, and Tarang, Olwell, and Olpers cream.
To support these brands and their highest standards of quality, Engro Foods has invested heavily
in milk processing and milk collection infrastructure. Headquartered in Karachi, Pakistan, it has
offices in seven cities across the country, as well as processing plants at Sukkur and Sahiwal. Engro
Foods is a subsidiary of Engro Corporation Limited, one of Pakistan’s most respected enterprises
with more than 40 years of business in the fertilizer and chemicals industry. In the five years since
its launch, Engro Foods has seen a rapid growth in sales and market share.
ENGRO FOODS LIMITED is the 100% owned subsidiary of ENGRO. The company's milk
production capacity is 700k litters per day. Moreover an investment plan of $ 3.4 billion in Engro
Foods has been approved by the board for: expanding UHT capacity to 900k liter per day,
expanding milk powder capacity to 70 kilo per day, import of 1000 cows and an ice cream plant.
The company is all set for growth as the milk business profitability is increasing due to increasing
consumption of milk and increasing prices of dairy products. Besides selling milk, the company
also sells the related products such as creams and unbranded products such as ghee, and recently
introduced a milk whitener; namely "Tarang". The value of the ENGRO FOODS LIMITED is
Rs.36 in total subsidiaries value of 63.4.
LOCATION OF OFFICES:
The head office of Engro Foods is located near Sea View, Karachi.
There regional head offices are in :
 Karachi
 Lahore
 Multan
 Rawalpindi
 Peshawar
 Gujranwala
Engro foods project
DEPARTMENTS OF ENGRO FOODS
Administration
Efficient management of all administrative affairs of Engro Foods 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.
Finance and Accounts
The finance and accounts 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 pocket is properly documented and audited.
Human Resource
The human resource department at Engro Foods limited spearheads their 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, superannuation. Assessing training needs of employees and ensuring
adequate training is also carried out by the professional HR team at Engro Foods.
Marketing
Consisting of leading market 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, launching 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.
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 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.
Management Information System
The MIS department 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 teams
responsibility.
Production
Modern technology is part and parcel of Production at Engro Foods. The state of the art plan set
up near Sukkhar has a processing capacity of more than 300,000 liters 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.
Quality Assurance
Quality Assurance is strictly followed in Engro Food. 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.
Supply and Distribution
This time 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.
PRODUCTS:
DAIRY & BEVRAGES
Sheer indulgence in every sip comes only with the rich creamy thickness
of Olper's. Give your day a fresh start with Olper's!
Embrace the lighter side of milk and feel years lighter with our low-fat milk
Olper's lite, for a guilt-free existence!
Savor the flavor of tradition and enjoy the rich, aromatic flavors of badam,
zafran and rose in every sip of milk with Olpers' flavored milk!
Enhance the culinary experience with Olper's Cream - a rich celebration of
life at its creamy best.
Experience sheer bliss in a tea-cup with Tarang, our special tea creamer for
that perfect cup of tea.
Get nutrition and the best value for money with Omung Dobala.
Rise up to a better life with our all-purpose dairy brand Omung available
at the ultimate price and in the best quality.
A dash of Tarrka in your favorite cuisine is all it takes to bring out the
flavor of your food and leave you craving for more.
FRESH DAIRY BUISNESS
Experience the blessings of Fresh Dairy with
Mabrook, providing balai bhar doodh and
koonda dahi fresh on a daily basis to satisfy the
daily dairy consumption requirements of the
family in the most hygienic way. Available at Mabrook outlets across Karachi.
Meat solution
Fresh/chilled
Olnosh brings you fresh and quality meat from the finest source, sold locally at ambient
temperatures and chilled for International markets.
Frozen
Olnosh's Halal meat is frozen to perfection (blast frozen at -25
degree Celsius) to preserve the tenderness of your cuts and ensure superior taste.
Ready to cook/Ready to eat
The var1ied range of ready to cook/ready to eat products will tantalize your taste-buds. Olnosh
is prepared from the finest ingredients to give you unbeatable taste and quality every time.
FROZEN DESSERTS
Cups
The simple joy of dessert!
Sticks
Explore the variety of Omore sticks; you are sure to find one that suits you perfectly!
Cones
The irresistible pleasure of delicious biscuit and creamy dessert! Omore cones
are a treat for all.
Family packs
For those who love to share happy moments and dessert
!
Engro foods project
OLPERS
Olper’s milk
Our flagship dairy brand Olper's Milk is ultra-heat treated to carefully preserve its rich creamy
thickness. The country's leading all-purpose standardized UHT processed milk, Olper's Milk is
sheer indulgence in every sip and is backed by its high nutrition content and invigorating
freshness that have become synonymous with the Olper's brand.
Widely favored for its fresh wholesome taste and full-cream richness, Olper's has steadily
emerged as the leading dairy product in the market since its launch in 2006 after gaining
preference over other established brands and securing a loyal consumer base all across Pakistan.
Available in 4 SKUs of 200 ml, 500ml, 1000 ml and 1500 ml value packs, today Olper's
combines nutrition, value and taste to deliver an unforgettable consumer experience to every
individual within every house-hold where the day begins with Olper's.
Embrace the lighter side of milk
The ideal low-fat, hi-calcium milk for adults who want to stay healthy, active and fit for life,
Olper's Lite contains all the inherent nutrients of milk that can boost energy, without the extra
calories that cause weight gain.
Rich in iron and calcium content, Olper's Lite has been specially formulated to provide
nutritional benefits to the growing number of health conscious consumers in Pakistan, who seek
products that can keep their calories in check whilst ensuring their health, nutrition and well-
being.
Available in liquid format, today Olper's Lite is the preferred low-fat milk in the market with all
the necessary ingredients to help adults achieve optimum health and keep it light by staying
calorie and guilt free
Every day is a celebration with our crème de la
cream!
The cream of all creams, Olper's Cream is a rich, creamy delight that has initiated a new trend
not just amongst baking enthusiasts and dessert makers, but also within conventional households,
where it is generously splurged over everyday food items as the primary ingredient to enhance
the culinary experience by transforming in into a scrumptious creamy sensation. Olper's cream
continues to make meal-times, as well as breakfast and afternoon rituals a rich, creamy
celebration day after day.
Savor the flavor of tradition - in every sip of milk
Inspired by the traditional flavors of badam, zafran and rose, Olper's flavored milk caters to a
diverse cross-section of consumers, with a penchant for natural ingredients infused in rich,
creamy and aromatic milk.
Launched in 2011 and available in 250 ml packs, Olper's Badam Zafran and Olper's Rose present
the rare combination of great tasting milk fused with the natural flavors of badaam, Zafran and
Rose for discerning customers seeking a wholesome experience of nutrition, taste and tradition.
Olper’s tarrka
Launched in 2007, Olper's Tarrka is our premium desi ghee distinct for its pure flavor and
aroma. A leading asli desi ghee brand that is extracted from milk, a dash of Tarrka in your
favorite cuisine is all it takes to bring out the flavor of your food and leave you craving more.
Launched in 2009, Omoré’s scrumptious range of frozen treats are a glorious treat for everyone –
be it children or adults. With its rich, creamy taste and wide-range of chunky flavors including
chocolate chip, coffee, cookies & cream, mango, strawberry, tutti fruiti, vanilla and banana, Omoré
ice-cream is a mouth-watering delight that has the distinct advantage of being a genuine dairy
product with high nutrition value. Available in 24 SKUs in different price categories, Omoré is
one of Pakistan’s widely preferred ice-cream brand that is sheer indulgence and impossible to
resist.
Flavors
 Chocolate
 Chocolate Chip
 Coffee
 Cookies and Cream
 Mango
 Strawberry
 Tutti Fruiti
 Vanilla
 Banana
PRODUCT LIFE CYCLE
OMORE is at the introductory phase at the life cycle phase as it was launched in
2009.
Introduction stage:
The introduction stage of a product's life cycle is when you can build an awareness
of your product or service in certain markets and develop a specific market.
Once your product or service is introduced to the market, you should focus on an
intense marketing effort to establish a clear identity and promote your product.
You should concentrate on building a base for the product at the introduction stage,
rather than making an immediate profit.
At the introduction stage, you should focus on the following marketing factors:
 pricing
 distribution
 promotion
HR highlights
Embracing new talent: The Engro Foods Management Trainee Programing our efforts to ensure
that Engro Foods continues to attract and retain world-class talent, we launched The Engro Foods
Management Trainee Program in 2013, which aims to build a talent pipeline that will enable us to
groom future leaders from within the organization. The program received great acclaim and
enabled us to become the Employer of Choice.
Developed to strengthen the EFL Employer Brand, the Engro Foods Management Trainee program
includes a comprehensive recruitment drive and informative sessions conducted at leading
universities in Pakistan. Designed to test the aptitude of high potential candidates, the program’s
recruitment drive includes an online aptitude test, a case study assessment, a business case
competition as well as competency based interviews followed by a final round of interviews with
the Engros Foods Management
Committee:
Through this rigorous process, we successfully inducted twelve university students as our first
batch of management trainees in 2013.
In line with our efforts to encourage cross-functional rotation, we also made a transition from our
regular induction of graduate trainee engineers, and rotated management trainees across our supply
chain division to equip our emerging leaders with a better understanding of all aspects of our
business. Employee Stock Option Scheme As an employer of choice, Engro Foods strives to
empower employees by continuously investing in them. Through our Employee Stock Option
Scheme (ESOS), the Company grants ordinary shares to selected employees who have made a
substantial contribution to the business to encourage and reward their efforts in increasing share
value of the Company. The main objective of our Employee Stock Option scheme is to
compensate, retain and attract talent that adds value to our business, whilst inculcating a sense of
ownership and a personal stake in employees striving to achieve organizational goals. Diversity at
Engro Foods Limited at Engro Foods, we take pride in the fact that female employees are an
integral part of our business. In the Supply Chain Division in specific, despite operations in remote
locations, women are an active part of the workforce. There are women working in various
departments of the Supply Chain Division including Quality Assurance, Quality Control, Research
& Development, Purchase, Production, Engineering,
Administration and HR.
Promoting gender diversity within the workplace is a priority for us and we specifically cater to
the needs of our female employees. To ensure the continued growth of our female workforce, we
have created multiple platforms to accelerate their personal and professional advancement.
Every year, an increasing number of women are hired as trainees at Engro Foods plant facilities,
where they receive comprehensive training to function effectively within the industrial
environment. Engro Foods women employees are also given the option to work in rotational shifts
with flexible working hours to accommodate their personal obligations.
At Engro Foods, we greatly value the professional contribution of female employees and also strive
to celebrate their personal achievements. At the Sukkur Plant, three of our female employees
working in the Quality Assurance and Quality Control Department are professional sportswomen,
who are encouraged to pursue their passion for sports and supported every time they compete at
provincial, national and international levels. Celebrating our Tree of Life at Engro Foods, we go
the extra mile to integrate employee engagement within our employer brand as we maintain a
culture that fosters inclusion and openness. Our employer brand is not only a reflection of our
corporate philosophy, but is also indicative of all the values that make Engro Foods an employer
of choice. As we continue to evolve and innovate, we launched our employer brand IEFL as LIFE
in 2013 in an effort to celebrate our employees who help us thrive by embracing our teamwork
approach that hinges upon individual effort for collective success.
LIFE promotes our philosophy that every employee at Engro Foods is a valuable component of
our ‘Tree of Life’, and makes a unique personal contribution to our overall success.
As our individual efforts branch out, bear fruit and flourish, at Engro Foods, we believe that our
people are our brand of success and Life is their brand. And so we take pride in the fact that our
employees are our family, our work is meaningful and Life is not just a brand but a way of life for
all of us.
My Career:
Making the digital transition As we continue to innovate processes, Engro Foods has launched a
fully integrated online portal ‘my Career ‘that aims to provide employees with a one-stop solution
to all their career needs, whilst enabling our HR administration to manage payroll, track
performances, boost team interaction and access employee information on a single platform.
Designed to streamline processes and enhance workforce productivity by improving the flow of
information across the company, the Engro Foods my Career platform has dramatically reduced
administrative hours and lab our previously devoted to the manual upkeep of employee
information.
As our team formally made the digital transition to my Career in 2013, a series of training sessions
were conducted across 14 Engro Foods locations to familiarize over 350 employees with the
portal’s performance assessment and compensation tools.
Multiple support networks have also been created at each site to ensure that portal users are
facilitated with ease of information and access at every location and level. At Engro Foods we will
continue to upgrade the Career portal in ways that can empower our employees to take control of
their performance and information.
PRODUCT LIFE CYCLE
Olper’s milk is a fast growing food company. By its unique techniques in a short time it
becomes very famous in market. But it is in growth stage yet. Because due to its
distribution, it is not available.
PRICE
EFI is pursuing the competitive pricing strategy for its products. In competitive pricing
the price of the product is considering the price of major competitors like Nestle, Haleeb
etc.
PLACE
This department ensures timely and effective distribution of the product to the shops and stores
spread all across Pakistan. From transportation management to obtaining route permits and
approvals, is done by this department.
PROMOTION
Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is
concerned, with TVCs, print ads, radio commercials, billboards activities including direct consumer and
shop branding activities. Due to aggressive marketing campaign, the competition seems to be getting
tougher. This can be gauged from the fact that nestle re-launched its product packaging and
marketing campaign just before Olpers launch. One can also a far greater number of milk
advertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle
Swot analysis
STRENGTHS:
Personal relations with farmers, ENGRO has been interacting with farmers for fertilizers and has
gained quite a good reputation over the years. It has led to a strong bong and long term
relationship with the farmers who are willing to supply the 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 won’t have to look elsewhere to sell their milk.
Positive response from customers in first year, EFL crossed 1.4 billion sales figure which shows
customers’ satisfaction upon EFL’s products.
Its taste, quality proposition and world class quality proposition system.
Third Generation Plant EFL only has the third generation UHT milk plant in the country.
EFL plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate
bacteria and ensure premium quality and hygiene.
WEAKNESSESS
One major weakness of Engro Foods in dairy products, which is that 85% of its milk
collection centers are in Punjab, while processing unit is in Sindh
Higher transportation cost
Dependency on TETRA PAK for the entire packing of its dairy products
Paying higher cost of packing of products results in higher overall products cost
The product range of Engro Foods narrows as compared to its competitors
OPPORTUNITIES
Pakistan is the fourth largest milk producing country. So, it’s an opportunity for
Company to grow in this sector
Engro Foods can increase awareness though different media, by showing ads those are
according to cultural requirements of Pakistan
By increasing the milk related products company can go globally
Engro can launch products like dry milk, cereal and Yogurts etc.
Growing dissatisfaction with milkmen’s milk and increasing awareness about health and
hygiene issues have led to increased processed milk consumption
THREATS
Competition:
Competition may pose a threat because the company will have to maintain its leadership
in an expanding market so that it doesn’t lose its market share to its competitor. For
Olpers it might be difficult to penetrate in a market where the loyalties exist for such
brands as Nestle & Haleeb.
Perception & price differentiae:
Consumer perceptions and price differentiae can cause a threat for the company. It is
important that Olpers comes up to the expectations of the customers and fulfills its
conformance quality that is the company needs its promised specifications. Consumer’s
preferences change with time and price might create certain barriers inters of the profit
margin for Olpers.
Engro Foods competitors Nestle and Haleeb are biggest threat.
WHY DID ENGRO ENTER THE FOOD
BUSINESS?
“Big opportunity due to population growth and indigenous sourcing. There is a huge population.
One seventy million is a very big market. There are only a few countries with such a huge
population in the world. Besides, our people spend a lot on food. Our economy is agro-based. We
get raw material at the local level.”
As marketing strategy means to make strategies that are customer driven and implementing them
through programs and awareness programs. This way new customers will be attracted, and will
help the company to make profits and help the company build profitable customer relationships.
The marketers will set a position of Olper's milk according to uniqueness of the product. The
marketers of this company will target middle to high social class that want a product that is as
useful as its perceived value.
Positioning
The red color that has been chosen for the packaging of Olper's milk is quite eye-catching and
distinctive than the colors that have been used in Pakistan in the milking sector till now. The
product will be positioned in a way that it conveys the message that it will fulfill all the purposes
of a consumer that the fresh milk does.
Olwell will be positioned in a way that it will target people who are goal-oriented and focus on
their careers. This will also exhibit a image that this will help people remain fit and in the same
shape without worrying for the fat contents in the regular milk.
Product strategy
Olper's milk along with the Olwell will include all the features and core values that have been
mentioned so as to receive maximum consumer satisfaction. More will be given than promised so
as to achieve customer delight.
A massive advertisement campaign with Olper's logo on every bill board, ads and newspapers.
Every marketing campaign will be utilized in order to let people know of the new product. There
will be many below the line activities including free tea using Olper's milk will be provided to the
potential buyers at major departmental stores for testing purposes, so that people know what type
of product they will be using.
Pricing strategy
We would be adopting competitive pricing strategy for all the products; Olper's milk, Olwell,
Olper's cream. In this type of pricing strategy, the prices of the competitors are studied and the
products' prices will be determined by this. As the price of Milk pack is around 70 Rs, we will
introduce our milk with a price slightly lower than this and then gradually increasing it.
Distribution Strategy
Olper's milk will be launched in many major cities, and will number around twenty. Olper's milk
will be distributed to over 80 cities very effectively in a short period of time after launch, because
it is very difficult to launch a product in more than 25 cities simultaneously. The distribution
strategy includes division of the country into five major regions. These regions will be Lahore,
Karachi, Multan, Islamabad and Peshawar. This requires efficient transport facilities as well as
warehouses and storages in different cities for the effective distribution. Trained personals will be
hired who will be having an experience of at least two years in the distribution field. The
dependence on technology for the distribution is necessary so new technology will be used to
monitor the storages, warehouses etc.
In order to attract distributors with experience a fixed commission rate of 5% will be set, that will
be not be negotiable in order to avoid future fights and hassle.
Sales targets will be set twice every month after discussing the market situations with the
distributors. Incentives, bonuses, increments, and training will be provided to the distributors and
staff for further improvement in the distribution field.
HIRARCHY OF ENGRO FOODS
MISSION STATEMENT
“Engro Foundation is committed to make positive impact on lives of communities around its
supply chain through provision of improved basic services (health, infrastructure, water and
sanitation); education and skill development; environment and livelihood training. In addition, it
will work with partner organizations to provide financial and technical support in response to
natural calamities.”
Through its network of facilities across Pakistan, Engro aims to make a difference in
communities where average household income borders or is below the poverty benchmark.
Engro Foundation works across rural and suburban Pakistan in partnership with development
organizations to create a trickledown effect of resource development, enabling indigenous
communities to sustain economies, employ their human resources, and learn critical skills they
need to be part of national mainstream.
TABLE OF CONTENTS
ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vision Statement of the Company . . . . .
Introduction of the Company . . . . . . . .
Hierarchy of the Company . . . . . . . . . . . .
HR Policies of the Company . . . . . . . . . . . .
Departments of the Company . . . . . . . . . .
Marketing Strategies of the Company.
Life Cycle Product of the Company . . . .
SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . .
Recommendations . . . . . . . . . . . . . . . . . . . . . .
Recommendations
 Engro Foods should have much diversified bi-product line of dairy
products like Nestle & Haleeb.
 They should introduce new promotions to get customers’
attention.
 EFL should expand its dairy farms so that they can get competitive
advantage.
 EFL should focus on Market Penetration, Market Development and
Product Development strategies with more efforts to be the
market leader.
 They should go expand its capacity to enter into in international
market like Nestle.
 Engro Foods can be into Co-branding with other brands like
Olper’s with Lipton tea bags, Olper’s with different biscuits etc. to
increase their sales
They can also move towards other foods products like Nestle launch Kit
Kat Chocolate, Meggi Noodles, Sweets Candies etc.
DEDICATION
This project is dedicated to ourselves because the hard work done by us
shows that there is nothing impossible, if you have the ability or desire
to achieve anything, nothing can stop you.
(Design your character like a sky, so that everyone try to reach there!)

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Engro foods project

  • 1. Research Completion Certificate It is certified that the research work contained in this project titled “Procter & Gamble” has been carried out and completed by Ahmed Abbas, M.Umer Illyas, Mujahid Majeed and Naqash Khalik & mujtaba tariq under our supervision during our Bachelors of Applied Accounting. Project Supervisor’s Signature Date: ____________________ _________________ (Prof. Ayesha Malik) _________________ Prof. Muhammad Azhar Ikram Ahmad Dean Faculty of Commerce University of Central Punjab Lahore.
  • 2. Undertaking I certify that the research work titled “Engro Food in Pakistan” is my own work. The work has not been presented elsewhere for assessment. Whenever the material has been used from other sources in the project, it has been properly acknowledged / referred to the original author. Signature of Student: ________________________ Name of Student: ___________________________ Registration Number of Student: _______________ Signature of Student: ________________________ Name of Student: ___________________________ Registration Number of Student: _______________ Signature of Student: ________________________ Name of Student: ___________________________ Registration Number of Student: _______________ Signature of Student: ________________________ Name of Student: ___________________________ Registration Number of Student: _______________
  • 3. Certificate of Examiners Certified that the quantum and quality of the research work contained in the project titled “Engro Food” is adequate for the award of degree of BS Applied Accounting. Internal Examiner External Examiner Signature: ________________ Signature: ________________ Name: ___________________ Name: ____________________ Date: ____________________ Date: _____________________ Dean of Faculty Signature: ________________ Name: ___________________ Date: ____________________
  • 4. -
  • 10. Firstly, we would like to thank Allah for giving us the opportunity and the resources to be able to do something productive with our lives. Without his blessings we would not have been able to come as far as we have. Then we would like to give our sincere thanks to Ma’am Ayesha for helping us throughout this project. Her guidelines have been very useful for us in preparing the report. She helped us find new ways of being innovative and creative. This report would not have been possible without her cooperation and continuous direction. Vision statement
  • 11. “Promoting growth of communities around Engro’s supply chain and giving people equal access to choices, opportunities and ability to exercise their rights” Engro Foundation brings realization to the dreams of our people to make a difference in lives of those around us. We believe in the power of Pakistan’s human capital to change the face of communities and economies and make them agents of a wider change. Abstract
  • 12. Engro Foods Pakistan The local flavor with a global vision Engro Foods is among the biggest and fastest growing companies in Pakistan with a vision to cater to local needs with products conforming to global standards. Highly passionate about providing millions of people across the length and breadth of Pakistan and beyond with the ultimate brand experience, our product portfolio comprises some of the country's biggest and best selling brands including Olper's, Olper's Lite, Omore, Dairy Omung, Olper's Lassi and Tarang. But whether it is our thick, creamy all-purpose milk, scrumptious ice-cream high on nutrition content or refreshing range of beverages, our approach remains largely the same as we strive to keep product innovation at the forefront of our guiding philosophy and consumer satisfaction at the heart of our operational strategy. And that is precisely what enables us to progress as Pakistan's premier foods company delivering top quality products infused with a local flavor and a global vision.
  • 13. My sought to choose this organization. Engro food is one of the most popular and developing industry of Pakistan. Engro foods making competitors. Introduction
  • 14. Engro chemical Pakistan Limited is the second largest producer of Urea fertilizer Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity of 75% shares in existent company. The employees of Engro, in partnership with leading international and local financial institutions bought out Exxon’s equity and the company was renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and Islamabad. The principal activity of the company is manufacturing, purchasing and marketing of fertilizers. The company is also involved in the production and marketing of seeds and has invested in joint ventures engaged in chemical related activities. As part of its diversification strategy, controlling interest was acquired in a company offering industrial solutions in automation and control. A new milk plant has been established at Sukkur the milk is branded as Olpers. BRIEF INTRODUCTION OF ENGRO FOOD LIMITED: Engro Foods Limited (EFL) has been established in 2005 as part of a diversification process at the Engro Group. EFL is a 100% Subsidiary of Engro Chemical Pakistan Limited. The plant located at Sukkur on 23-acre land, has the raw milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day. The plant has been established at a cost of Rs. 1 billion, which provides direct employment to 750 people. Engro Foods has entered the Food business through milk processing and sale with the company’s vision to 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. Engro Foods will
  • 15. work with the Pakistan Poverty Alleviation Fund and its three partner organizations to help implement sustainable business models that increase farmer’s profitability and develop a positive social and business climate for growth and expansion of livestock and other forms of value added agriculture. ENGRO FOODS LTD:
  • 16. Founded in March 2006, Engro Foods Limited is a producer and marketer of dairy products. The company’s brands include Olpers Milk, Omore ice cream, and Tarang, Olwell, and Olpers cream. To support these brands and their highest standards of quality, Engro Foods has invested heavily in milk processing and milk collection infrastructure. Headquartered in Karachi, Pakistan, it has offices in seven cities across the country, as well as processing plants at Sukkur and Sahiwal. Engro Foods is a subsidiary of Engro Corporation Limited, one of Pakistan’s most respected enterprises with more than 40 years of business in the fertilizer and chemicals industry. In the five years since its launch, Engro Foods has seen a rapid growth in sales and market share. ENGRO FOODS LIMITED is the 100% owned subsidiary of ENGRO. The company's milk production capacity is 700k litters per day. Moreover an investment plan of $ 3.4 billion in Engro Foods has been approved by the board for: expanding UHT capacity to 900k liter per day, expanding milk powder capacity to 70 kilo per day, import of 1000 cows and an ice cream plant. The company is all set for growth as the milk business profitability is increasing due to increasing consumption of milk and increasing prices of dairy products. Besides selling milk, the company also sells the related products such as creams and unbranded products such as ghee, and recently introduced a milk whitener; namely "Tarang". The value of the ENGRO FOODS LIMITED is Rs.36 in total subsidiaries value of 63.4. LOCATION OF OFFICES: The head office of Engro Foods is located near Sea View, Karachi. There regional head offices are in :
  • 17.  Karachi  Lahore  Multan  Rawalpindi  Peshawar  Gujranwala
  • 19. DEPARTMENTS OF ENGRO FOODS Administration Efficient management of all administrative affairs of Engro Foods 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. Finance and Accounts The finance and accounts 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 pocket is properly documented and audited. Human Resource The human resource department at Engro Foods limited spearheads their 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, superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods. Marketing Consisting of leading market professionals of the industry, who are graduates of top business schools of Pakistan, the marketing department ensures that from product need identification to
  • 20. product development, launching 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. 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 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. Management Information System The MIS department 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 teams responsibility. Production Modern technology is part and parcel of Production at Engro Foods. The state of the art plan set up near Sukkhar has a processing capacity of more than 300,000 liters 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.
  • 21. Quality Assurance Quality Assurance is strictly followed in Engro Food. 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. Supply and Distribution This time 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. PRODUCTS:
  • 22. DAIRY & BEVRAGES Sheer indulgence in every sip comes only with the rich creamy thickness of Olper's. Give your day a fresh start with Olper's! Embrace the lighter side of milk and feel years lighter with our low-fat milk Olper's lite, for a guilt-free existence! Savor the flavor of tradition and enjoy the rich, aromatic flavors of badam, zafran and rose in every sip of milk with Olpers' flavored milk! Enhance the culinary experience with Olper's Cream - a rich celebration of life at its creamy best.
  • 23. Experience sheer bliss in a tea-cup with Tarang, our special tea creamer for that perfect cup of tea. Get nutrition and the best value for money with Omung Dobala. Rise up to a better life with our all-purpose dairy brand Omung available at the ultimate price and in the best quality. A dash of Tarrka in your favorite cuisine is all it takes to bring out the flavor of your food and leave you craving for more.
  • 24. FRESH DAIRY BUISNESS Experience the blessings of Fresh Dairy with Mabrook, providing balai bhar doodh and koonda dahi fresh on a daily basis to satisfy the daily dairy consumption requirements of the family in the most hygienic way. Available at Mabrook outlets across Karachi. Meat solution Fresh/chilled Olnosh brings you fresh and quality meat from the finest source, sold locally at ambient temperatures and chilled for International markets.
  • 25. Frozen Olnosh's Halal meat is frozen to perfection (blast frozen at -25 degree Celsius) to preserve the tenderness of your cuts and ensure superior taste. Ready to cook/Ready to eat The var1ied range of ready to cook/ready to eat products will tantalize your taste-buds. Olnosh is prepared from the finest ingredients to give you unbeatable taste and quality every time.
  • 26. FROZEN DESSERTS Cups The simple joy of dessert! Sticks Explore the variety of Omore sticks; you are sure to find one that suits you perfectly! Cones The irresistible pleasure of delicious biscuit and creamy dessert! Omore cones are a treat for all.
  • 27. Family packs For those who love to share happy moments and dessert !
  • 29. OLPERS Olper’s milk Our flagship dairy brand Olper's Milk is ultra-heat treated to carefully preserve its rich creamy thickness. The country's leading all-purpose standardized UHT processed milk, Olper's Milk is sheer indulgence in every sip and is backed by its high nutrition content and invigorating freshness that have become synonymous with the Olper's brand. Widely favored for its fresh wholesome taste and full-cream richness, Olper's has steadily emerged as the leading dairy product in the market since its launch in 2006 after gaining preference over other established brands and securing a loyal consumer base all across Pakistan. Available in 4 SKUs of 200 ml, 500ml, 1000 ml and 1500 ml value packs, today Olper's combines nutrition, value and taste to deliver an unforgettable consumer experience to every individual within every house-hold where the day begins with Olper's. Embrace the lighter side of milk The ideal low-fat, hi-calcium milk for adults who want to stay healthy, active and fit for life, Olper's Lite contains all the inherent nutrients of milk that can boost energy, without the extra calories that cause weight gain. Rich in iron and calcium content, Olper's Lite has been specially formulated to provide nutritional benefits to the growing number of health conscious consumers in Pakistan, who seek products that can keep their calories in check whilst ensuring their health, nutrition and well- being. Available in liquid format, today Olper's Lite is the preferred low-fat milk in the market with all the necessary ingredients to help adults achieve optimum health and keep it light by staying calorie and guilt free
  • 30. Every day is a celebration with our crème de la cream! The cream of all creams, Olper's Cream is a rich, creamy delight that has initiated a new trend not just amongst baking enthusiasts and dessert makers, but also within conventional households, where it is generously splurged over everyday food items as the primary ingredient to enhance the culinary experience by transforming in into a scrumptious creamy sensation. Olper's cream continues to make meal-times, as well as breakfast and afternoon rituals a rich, creamy celebration day after day. Savor the flavor of tradition - in every sip of milk Inspired by the traditional flavors of badam, zafran and rose, Olper's flavored milk caters to a diverse cross-section of consumers, with a penchant for natural ingredients infused in rich, creamy and aromatic milk. Launched in 2011 and available in 250 ml packs, Olper's Badam Zafran and Olper's Rose present the rare combination of great tasting milk fused with the natural flavors of badaam, Zafran and Rose for discerning customers seeking a wholesome experience of nutrition, taste and tradition. Olper’s tarrka Launched in 2007, Olper's Tarrka is our premium desi ghee distinct for its pure flavor and aroma. A leading asli desi ghee brand that is extracted from milk, a dash of Tarrka in your favorite cuisine is all it takes to bring out the flavor of your food and leave you craving more.
  • 31. Launched in 2009, Omoré’s scrumptious range of frozen treats are a glorious treat for everyone – be it children or adults. With its rich, creamy taste and wide-range of chunky flavors including chocolate chip, coffee, cookies & cream, mango, strawberry, tutti fruiti, vanilla and banana, Omoré ice-cream is a mouth-watering delight that has the distinct advantage of being a genuine dairy product with high nutrition value. Available in 24 SKUs in different price categories, Omoré is one of Pakistan’s widely preferred ice-cream brand that is sheer indulgence and impossible to resist. Flavors
  • 32.  Chocolate  Chocolate Chip  Coffee  Cookies and Cream  Mango  Strawberry  Tutti Fruiti  Vanilla  Banana PRODUCT LIFE CYCLE
  • 33. OMORE is at the introductory phase at the life cycle phase as it was launched in 2009. Introduction stage: The introduction stage of a product's life cycle is when you can build an awareness of your product or service in certain markets and develop a specific market. Once your product or service is introduced to the market, you should focus on an intense marketing effort to establish a clear identity and promote your product. You should concentrate on building a base for the product at the introduction stage, rather than making an immediate profit. At the introduction stage, you should focus on the following marketing factors:  pricing  distribution  promotion
  • 34. HR highlights Embracing new talent: The Engro Foods Management Trainee Programing our efforts to ensure that Engro Foods continues to attract and retain world-class talent, we launched The Engro Foods Management Trainee Program in 2013, which aims to build a talent pipeline that will enable us to groom future leaders from within the organization. The program received great acclaim and enabled us to become the Employer of Choice. Developed to strengthen the EFL Employer Brand, the Engro Foods Management Trainee program includes a comprehensive recruitment drive and informative sessions conducted at leading universities in Pakistan. Designed to test the aptitude of high potential candidates, the program’s recruitment drive includes an online aptitude test, a case study assessment, a business case competition as well as competency based interviews followed by a final round of interviews with the Engros Foods Management Committee: Through this rigorous process, we successfully inducted twelve university students as our first batch of management trainees in 2013. In line with our efforts to encourage cross-functional rotation, we also made a transition from our regular induction of graduate trainee engineers, and rotated management trainees across our supply chain division to equip our emerging leaders with a better understanding of all aspects of our business. Employee Stock Option Scheme As an employer of choice, Engro Foods strives to empower employees by continuously investing in them. Through our Employee Stock Option
  • 35. Scheme (ESOS), the Company grants ordinary shares to selected employees who have made a substantial contribution to the business to encourage and reward their efforts in increasing share value of the Company. The main objective of our Employee Stock Option scheme is to compensate, retain and attract talent that adds value to our business, whilst inculcating a sense of ownership and a personal stake in employees striving to achieve organizational goals. Diversity at Engro Foods Limited at Engro Foods, we take pride in the fact that female employees are an integral part of our business. In the Supply Chain Division in specific, despite operations in remote locations, women are an active part of the workforce. There are women working in various departments of the Supply Chain Division including Quality Assurance, Quality Control, Research & Development, Purchase, Production, Engineering, Administration and HR. Promoting gender diversity within the workplace is a priority for us and we specifically cater to the needs of our female employees. To ensure the continued growth of our female workforce, we have created multiple platforms to accelerate their personal and professional advancement. Every year, an increasing number of women are hired as trainees at Engro Foods plant facilities, where they receive comprehensive training to function effectively within the industrial environment. Engro Foods women employees are also given the option to work in rotational shifts with flexible working hours to accommodate their personal obligations. At Engro Foods, we greatly value the professional contribution of female employees and also strive to celebrate their personal achievements. At the Sukkur Plant, three of our female employees working in the Quality Assurance and Quality Control Department are professional sportswomen, who are encouraged to pursue their passion for sports and supported every time they compete at
  • 36. provincial, national and international levels. Celebrating our Tree of Life at Engro Foods, we go the extra mile to integrate employee engagement within our employer brand as we maintain a culture that fosters inclusion and openness. Our employer brand is not only a reflection of our corporate philosophy, but is also indicative of all the values that make Engro Foods an employer of choice. As we continue to evolve and innovate, we launched our employer brand IEFL as LIFE in 2013 in an effort to celebrate our employees who help us thrive by embracing our teamwork approach that hinges upon individual effort for collective success. LIFE promotes our philosophy that every employee at Engro Foods is a valuable component of our ‘Tree of Life’, and makes a unique personal contribution to our overall success. As our individual efforts branch out, bear fruit and flourish, at Engro Foods, we believe that our people are our brand of success and Life is their brand. And so we take pride in the fact that our employees are our family, our work is meaningful and Life is not just a brand but a way of life for all of us. My Career: Making the digital transition As we continue to innovate processes, Engro Foods has launched a fully integrated online portal ‘my Career ‘that aims to provide employees with a one-stop solution to all their career needs, whilst enabling our HR administration to manage payroll, track performances, boost team interaction and access employee information on a single platform. Designed to streamline processes and enhance workforce productivity by improving the flow of information across the company, the Engro Foods my Career platform has dramatically reduced administrative hours and lab our previously devoted to the manual upkeep of employee information.
  • 37. As our team formally made the digital transition to my Career in 2013, a series of training sessions were conducted across 14 Engro Foods locations to familiarize over 350 employees with the portal’s performance assessment and compensation tools. Multiple support networks have also been created at each site to ensure that portal users are facilitated with ease of information and access at every location and level. At Engro Foods we will continue to upgrade the Career portal in ways that can empower our employees to take control of their performance and information.
  • 38. PRODUCT LIFE CYCLE Olper’s milk is a fast growing food company. By its unique techniques in a short time it becomes very famous in market. But it is in growth stage yet. Because due to its distribution, it is not available. PRICE EFI is pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is considering the price of major competitors like Nestle, Haleeb etc.
  • 39. PLACE This department ensures timely and effective distribution of the product to the shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department. PROMOTION Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is concerned, with TVCs, print ads, radio commercials, billboards activities including direct consumer and shop branding activities. Due to aggressive marketing campaign, the competition seems to be getting tougher. This can be gauged from the fact that nestle re-launched its product packaging and marketing campaign just before Olpers launch. One can also a far greater number of milk advertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle
  • 41. STRENGTHS: Personal relations with farmers, ENGRO has been interacting with farmers for fertilizers and has gained quite a good reputation over the years. It has led to a strong bong and long term relationship with the farmers who are willing to supply the 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 won’t have to look elsewhere to sell their milk. Positive response from customers in first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s products. Its taste, quality proposition and world class quality proposition system. Third Generation Plant EFL only has the third generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene.
  • 42. WEAKNESSESS One major weakness of Engro Foods in dairy products, which is that 85% of its milk collection centers are in Punjab, while processing unit is in Sindh Higher transportation cost Dependency on TETRA PAK for the entire packing of its dairy products Paying higher cost of packing of products results in higher overall products cost The product range of Engro Foods narrows as compared to its competitors
  • 43. OPPORTUNITIES Pakistan is the fourth largest milk producing country. So, it’s an opportunity for Company to grow in this sector Engro Foods can increase awareness though different media, by showing ads those are according to cultural requirements of Pakistan By increasing the milk related products company can go globally Engro can launch products like dry milk, cereal and Yogurts etc. Growing dissatisfaction with milkmen’s milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption
  • 44. THREATS Competition: Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitor. For Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle & Haleeb. Perception & price differentiae: Consumer perceptions and price differentiae can cause a threat for the company. It is important that Olpers comes up to the expectations of the customers and fulfills its conformance quality that is the company needs its promised specifications. Consumer’s preferences change with time and price might create certain barriers inters of the profit margin for Olpers. Engro Foods competitors Nestle and Haleeb are biggest threat.
  • 45. WHY DID ENGRO ENTER THE FOOD BUSINESS? “Big opportunity due to population growth and indigenous sourcing. There is a huge population. One seventy million is a very big market. There are only a few countries with such a huge population in the world. Besides, our people spend a lot on food. Our economy is agro-based. We get raw material at the local level.”
  • 46. As marketing strategy means to make strategies that are customer driven and implementing them through programs and awareness programs. This way new customers will be attracted, and will help the company to make profits and help the company build profitable customer relationships. The marketers will set a position of Olper's milk according to uniqueness of the product. The marketers of this company will target middle to high social class that want a product that is as useful as its perceived value. Positioning The red color that has been chosen for the packaging of Olper's milk is quite eye-catching and distinctive than the colors that have been used in Pakistan in the milking sector till now. The
  • 47. product will be positioned in a way that it conveys the message that it will fulfill all the purposes of a consumer that the fresh milk does. Olwell will be positioned in a way that it will target people who are goal-oriented and focus on their careers. This will also exhibit a image that this will help people remain fit and in the same shape without worrying for the fat contents in the regular milk. Product strategy Olper's milk along with the Olwell will include all the features and core values that have been mentioned so as to receive maximum consumer satisfaction. More will be given than promised so as to achieve customer delight. A massive advertisement campaign with Olper's logo on every bill board, ads and newspapers. Every marketing campaign will be utilized in order to let people know of the new product. There will be many below the line activities including free tea using Olper's milk will be provided to the potential buyers at major departmental stores for testing purposes, so that people know what type of product they will be using. Pricing strategy We would be adopting competitive pricing strategy for all the products; Olper's milk, Olwell, Olper's cream. In this type of pricing strategy, the prices of the competitors are studied and the
  • 48. products' prices will be determined by this. As the price of Milk pack is around 70 Rs, we will introduce our milk with a price slightly lower than this and then gradually increasing it. Distribution Strategy Olper's milk will be launched in many major cities, and will number around twenty. Olper's milk will be distributed to over 80 cities very effectively in a short period of time after launch, because it is very difficult to launch a product in more than 25 cities simultaneously. The distribution strategy includes division of the country into five major regions. These regions will be Lahore, Karachi, Multan, Islamabad and Peshawar. This requires efficient transport facilities as well as warehouses and storages in different cities for the effective distribution. Trained personals will be hired who will be having an experience of at least two years in the distribution field. The dependence on technology for the distribution is necessary so new technology will be used to monitor the storages, warehouses etc. In order to attract distributors with experience a fixed commission rate of 5% will be set, that will be not be negotiable in order to avoid future fights and hassle. Sales targets will be set twice every month after discussing the market situations with the distributors. Incentives, bonuses, increments, and training will be provided to the distributors and staff for further improvement in the distribution field.
  • 50. MISSION STATEMENT “Engro Foundation is committed to make positive impact on lives of communities around its supply chain through provision of improved basic services (health, infrastructure, water and sanitation); education and skill development; environment and livelihood training. In addition, it will work with partner organizations to provide financial and technical support in response to natural calamities.” Through its network of facilities across Pakistan, Engro aims to make a difference in communities where average household income borders or is below the poverty benchmark. Engro Foundation works across rural and suburban Pakistan in partnership with development organizations to create a trickledown effect of resource development, enabling indigenous communities to sustain economies, employ their human resources, and learn critical skills they need to be part of national mainstream.
  • 51. TABLE OF CONTENTS ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vision Statement of the Company . . . . . Introduction of the Company . . . . . . . . Hierarchy of the Company . . . . . . . . . . . . HR Policies of the Company . . . . . . . . . . . . Departments of the Company . . . . . . . . . . Marketing Strategies of the Company. Life Cycle Product of the Company . . . . SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . Recommendations . . . . . . . . . . . . . . . . . . . . . .
  • 52. Recommendations  Engro Foods should have much diversified bi-product line of dairy products like Nestle & Haleeb.  They should introduce new promotions to get customers’ attention.  EFL should expand its dairy farms so that they can get competitive advantage.  EFL should focus on Market Penetration, Market Development and Product Development strategies with more efforts to be the market leader.  They should go expand its capacity to enter into in international market like Nestle.  Engro Foods can be into Co-branding with other brands like Olper’s with Lipton tea bags, Olper’s with different biscuits etc. to increase their sales They can also move towards other foods products like Nestle launch Kit Kat Chocolate, Meggi Noodles, Sweets Candies etc. DEDICATION
  • 53. This project is dedicated to ourselves because the hard work done by us shows that there is nothing impossible, if you have the ability or desire to achieve anything, nothing can stop you. (Design your character like a sky, so that everyone try to reach there!)