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This report is based on "Marketing Mix"

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Engro foods Document Transcript

  • 1. [Type text] Page 1
  • 2. [Type text] Page 2Hamdard Institute of Management and SciencesPrinciple of Marketing(Final Term Report)Marketing Mix ConceptClient: Engro FoodSubmitted to: Prepared by:Mr. Asim Mehmood M. Assad Fahim Khan (313001)Abdul Rehman Ashraf (313003)Syeda Tehmina Usman (313002)Zermina Sher (313005)
  • 3. [Type text] Page 3TABLE OF CONTENTSACKNOWLEDGEMENTS..............................................................................................................5ABSTRACT.................................................................................................................................6WHAT IS MARKETING MIX.........................................................................................................7The Importance of Marketing Mix!............................................................................................7Create Marketing Plan that Aligns with Mix ..............................................................................7The Marketing Mix (The 4 Ps of Marketing)..............................................................................9The Marketing Mix.................................................................................................................................................9Product Decisions ............................................................................................................................10Price Decisions.................................................................................................................................10Distribution (Place) Decisions...........................................................................................................10Promotion Decisions........................................................................................................................11Milking the Market ................................................................................................................. 11Engro Food’s History ............................................................................................................... 12Vision ..............................................................................................................................................13CoreValues ......................................................................................................................................13DEPARTMENTS ................................................................................................................................13Marketing Research conducted by Engro Foods....................................................................... 16ENGRO FOODS Product Range..........................................................................................................18Marketing Mix of Engro Foods ................................................................................................ 21Product............................................................................................................................................21OLPERS....................................................................................................................................................................21► Every day is a celebration with our créme de la cream! ................................................................22DAIRY OMUNG & TARANG......................................................................................................................................22► Tarang in your tea-cup makes for sheer bliss ..............................................................................23TARKA .....................................................................................................................................................................24OMUNG LASSI .........................................................................................................................................................24JUICES AND NECTARS..............................................................................................................................................24“heavenly nectars from Engro Foods”...............................................................................................24ICE CREAM ..............................................................................................................................................................25PERIODICALLY INCREASINING IN BRANDS ..............................................................................................................26ACHIEVEMENT OF ENGRO FOODS ..........................................................................................................................26
  • 4. [Type text] Page 4PRICE...............................................................................................................................................27Price Decisions: .......................................................................................................................................................27Pricing Strategy .......................................................................................................................................................27Cost-plus pricing ...................................................................................................................................................28Value based pricing.................................................................................................................................................28Price list of Engro Food Products............................................................................................................................29Place........................................................................................................................................................................30Supply Chain Management in Engro Foods ............................................................................................................30Inbound Logistics ....................................................................................................................................................31Outbound Logistics: ................................................................................................................................................31The warehousing and distribution of finished goods. ............................................................................................31Objective of Supply Chain Management in Engro Foods........................................................................................31Engro Foods Distribution Channels.........................................................................................................................31LOGISTICS................................................................................................................................................................32Promotion .......................................................................................................................................34Olpers Milk..............................................................................................................................................................34Advertising..............................................................................................................................................................34Olper cream ............................................................................................................................................................34Omung lassi............................................................................................................................................................34Comparision with other brands ..............................................................................................................................35Building customer based brand equity...................................................................................................................35Success of olpers.....................................................................................................................................................35Oplers packing ........................................................................................................................................................36Milk for bones.........................................................................................................................................................36Best quality .............................................................................................................................................................36Unique image..........................................................................................................................................................37Distinctive name .....................................................................................................................................................37Credibility................................................................................................................................................................37Measuring customer-based brand equity...............................................................................................................37Managing customer-based brand equity................................................................................................................37Social Responsibility................................................................................................................................................38Conclusions............................................................................................................................. 39
  • 5. [Type text] Page 5ACKNOWLEDGEMENTSFirstly we would thank Allah for giving us the opportunity and theresources to be able to do something productive with our lives.Without His blessings we would not have been able to come as faras we have.Then our sincere thanks to Sir, Asim for helping us throughout thisreport. His guidelines have been very useful for us in preparingthis report. He helped us find new ways of being innovative andcreative.This report would not have been possible without hiscooperation and continuous direction.Last but not the least we would like to thank our families for theirincessant support and approval.
  • 6. [Type text] Page 6ABSTRACTThis report is about the marketing mix of Engro Foods from the time whenENGRO foods came up with the idea of adding a new product line to theiralready well established and long set of product lines to the point that theyare still heavily promoting their product. We start by giving a brief historyabout Olpers and how it came into existence. We talk about the corporatestructure and organizational hierarchy of ENGRO Fertilizers, its missionstatement and the vision. We move further with its goals that it has thoughtabout for Olpers and eventually the type of organizational culture of theorganization.We discuss the types of marketing research conducted by the company beforeintroducing it to the market and how they have segmented its target marketand positioned the product in the minds of the consumers.Olpers.
  • 7. [Type text] Page 7WHAT IS MARKETING MIXThe marketing mix is one of the most famous marketing terms. The marketing mix is the tactical oroperational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Psare price, place, product and promotion. The services marketing mix is also called the 7Ps andincludes the addition of process, people and physical evidence.The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk,flour, and sugar. However, you can alter the final cake by altering the amounts of mix elementscontained in it. So for a sweet cake add more sugar!It is the same with the marketing mix. The offer you make to your customer can be altered byvarying the mix elements. So for a high profile brand, increase the focus on promotion anddesensitize the weight given to price.The Importance of Marketing Mix!Create Marketing Plan that Aligns with MixThe importance of marketing mix is often overlooked in strategy. Create marketing plan strategiesfor your business that include writing action plans, building integrated marketing communicationmix tactics, developing differentiation and positioning statements, and more.Marketing being an integral part of operations in a company, companies often invest and allocatesubstantial financial resources and efforts into marketing activities. In the current scenario it isnecessary to be accurate and efficient in managing the marketing resources and the budget allocatedto the activities. Choosing an effective strategy with right combination of marketing activities is achallenge in a scenario where you have multiple options, multiple segments and product offerings.The marketing mix would necessarily consist of the activities like sales, promotions & advertisements(both online and offline), duration of the activities, timing and frequency of the activities dependingupon the product and its variants, the target segment, the distribution network, channel reach, the
  • 8. [Type text] Page 8region, size and based on the planned marketing activities understanding the potential of the marketthrough market research.The benefits of the efficient management of these activities are precision in reaching out to the targetaudience, understanding the returns by each of the activities, reduction in cost by cutting downdoubling effect & effective management in overall efforts, time & cost.Introducing the concept of opportunity cost here, when accompany allocates human resources,financial resources, time and efforts targeting the planned marketing segments, it is choosing betweenmarkets and marketing options bases on expected results. Hence the activities are chosen betweenmultiple options and if the frequency and duration of activities are precisely managed; the marketingefforts will yield better results with improved efficiency.The management of marketing mix acts as a regular audit on the marketing activities being carriedout and can be closely monitored to yield better results. This helps in real time coordination on themarketing efforts.Though in practice companies use business Intelligence software and KPIs for the understanding ofthe marketing activities and product performance across targeted markets; it is necessary tounderstand in a constantly changing business environment with changes in technology, externalbusiness environment and governing policies; it becomes difficult to act upon the KPIs and will haveto rely on intuitive understanding of the business strengths and environment.In a scenario where consider promotional options of news & media advertisements, sponsorships,online marketing, hoardings, tradeshows are cost intensive it is a dilemma to choose the right mix intargeting the desired market segments.In services industries the marketing is dependent on the online marketing and direct sales, where asin a product based or B2B manufacturing industry it is dependent upon the strong distributionchannel & network, in a FMCG, Telecom, Consumer Durables, industries it is dependent again on thedistribution network but also on advertisements and promotions through the media network. Ininvestment intensive industries to a major it is dependent upon the activities of focus with thebackground of clientele and past projects delivered.General mistakes companies make in reaching to a market segment are overlapping of activities(channels) for the same target segment and product. This generally happens in services, FMCG sectorwhere the end user is the individual consumer. It is important to choose limited marketing channelsfor the targeted market segment to make sure the customer does not get irritated by the marketingactivities.
  • 9. [Type text] Page 9The Marketing Mix(The 4 Ps of Marketing)Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) PromotionThe term "marketing mix" became popularized after Neil H. Borden published his 1964 article, TheConcept of the Marketing Mix. Borden began using the term in his teaching in the late 1940s afterJames Culliton had described the marketing manager as a "mixer of ingredients". The ingredients inBordens marketing mix included product planning, pricing, branding, distribution channels, personalselling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding andanalysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today areknown as the 4 Ps of marketing, depicted below:The Marketing Mix
  • 10. [Type text] Page 10These four Ps are the parameters that the marketing manager can control, subject to the internal andexternal constraints of the marketing environment. The goal is to make decisions that center the fourPs on the customers in the target market in order to create perceived value and generate a positiveresponse.Product DecisionsThe term "product" refers to tangible, physical products as well as services. Here are some examplesof the product decisions to be made: Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and servicesPrice DecisionsSome examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discriminationDistribution (Place) DecisionsDistribution is about getting the products to the customer. Some examples of distribution decisionsinclude: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing
  • 11. [Type text] Page 11 Distribution centers Order processing Transportation Reverse logisticsPromotion DecisionsIn the context of the marketing mix, promotion represents the various aspects of marketingcommunication, that is, the communication of information about the product with the goal ofgenerating a positive customer response. Marketing communication decisions include: Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budgetMilking 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
  • 12. [Type text] Page 12challenges and perceptions still 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.Engro Food’s 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.
  • 13. [Type text] Page 13Vision"Our vision is to become a fast expanding mega foods company. To achieveour vision, the company will initially focus on dairy by investing asubstantial amount in plant, milk collection capability and marketing. We are making concreteefforts to expand in and beyond Pakistan; through strategic international alliances, to eventuallybecome global."CoreValues(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.DEPARTMENTS(1) AdministrationEfficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of theAdministration 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 AccountsThe Finance and Accounting departments at Engro Foods are responsible for the totalfinancial management of the different businesses of the company. From the usualaccounting statements and sheets to risk and portfolio management, the team ensuresthat every rupee coming into and out of the Companies pockets is properly
  • 14. [Type text] Page 14documented and audited.(3) Human ResourceThe Human Resource department at Engro Foods (Pvt.) Limited spearheads therecruitment process to ensure that the finest human resource is taken on board atEngro Foods. Resumes of candidates are carefully filed and documented for current orfuture reference. The department, besides carrying out succession planning, maintainsand implements HR policies pertaining to employment, retention and superannuation.Assessing training needs of employees and ensuring adequate training is also carried outby the professional HR team at Engro Foods.(4) MarketingConsisting of leading marketing professionals of the industry, who are graduates of topbusiness schools of Pakistan, the Marketing Department ensures that from productneed identification to product development, launch and post-launch, all strategicdecisions are made based on authentic information and research. Identifying the targetmarkets, effectively communicating to them and building the image of the brands aswell as the Companies, is the job of the professionals running the marketing at EngroFoods.(5) Milk ProcurementAs all of our food products are milk based, the entire Milk Procurement departmentplays a critical role in defining the quality of the end product that reaches ourcustomers. Ensuring regular collection of fresh and pure milk right from the farmer tothe factory and ascertaining the freshness of milk all across the milk procurementprocess, is the responsibility of Milk Procurement department, consisting of food technologistsworking at the collection centers and veterinary doctors providing service to the farmers.
  • 15. [Type text] Page 15(6) MISThe MIS department at Engro Foods ensures that all automation is running error-free at alltimes. Regularly modifying and updating the Companys accounting software is also the MISteams responsibility.(7)ProductionModern technology is part and parcel of Production at Engro Foods. The state-of-the-artplant set up near Sukkhar has a processing capacity of more than 300,000 litres of milkper day, making it one of the largest in the country. Professionally qualified humanresource efficiently works night and day to maintain highest hygiene standards.(8)Quality AssuraneQuality Assurance is strictly followed in Engro Foods. Qualified food technologists at thisdepartment ensure that highest quality parameters are adhered to through all steps ofproduction and that the products reach the consumers as per promise.(9) Supply & DistributionThis department ensures timely and effective distribution of the products to differentshops and stores spread all across Pakistan. From transportation management toobtaining route permits and approvals, is done by this department.
  • 16. [Type text] Page 16Marketing 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.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.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 final
  • 17. [Type text] Page 17verdict. 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.
  • 18. [Type text] Page 18ENGRO FOODS Product RangeSheer indulgence in every sip comes Embrace the lighter side of milk andonly with the rich creamy thickness of feel years lighter with our low-fat milkOlpers. Give your day a fresh start with Olpers! Olpers lite, for a guilt-free existence!Savor the flavor of tradition and enjoy Enhance the culinary experience withthe rich, aromatic flavors of badam, Olpers Cream - a rich celebration ofzafran and rose in every sip of milk with life at its creamy best.Olpers flavored milk!
  • 19. [Type text] Page 19Experience sheer bliss in a tea-cup with Get nutrition and the best value forTarang, our special tea creamer for money with omung dobala.that perfect cup of tea.Enjoy our heavenly nectars extracted Rise up to a better life with our allfrom pure fruits to revitalize you with purpose dairy brand Omung availablea much-needed boost, anytime at the ultimate price and in the bestanywhere. Only with Olfrute. Quality.
  • 20. [Type text] Page 20A dash of Tarrka in your favorite cuisine With its rich, creamy taste, highis all it takes to bring out the flavor of nutrition content and wide-range ofyour food and leave you craving for chunky flavors, get more from yourmore. ice-cream with Omore!Enjoy home-made Lassi in the Enjoy home-made Lassi in theconvenience of a Tetra Pak. Refresh convenience of a Tetra Pak. Refreshyour day with our two delicious flavors. your day with our two delicious.
  • 21. [Type text] Page 21Marketing Mix of Engro FoodsThe marketing mix covers all the aspects which play an important role in thephysical appearance, affordability and the way a product is placed in front of the consumer. It helpsin building an image which would in the end help the company to capturehuge market.ProductOLPERSEngro Foods was established in 2005, and it is subsidiary companyof Engro Corporation. Engro Foods launched its first product withbrand name “OLPERS”. At that time other competitive productswas widely available in market such as “Nestle and Haleeb”.In next coming months and years “OLPERS” gained preference in the market over established brandsafter launched due to its healthy features and properties of its product.Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultra heat treated) milk with 3.5 %fat and 8.9 % solid non-fats. It is EFL’s premier brand, and the choice of quality-conscious consumerswho only go for the best. It is available in easy-to-open, 6-layered Tetra Pak Brick Aseptic redpackaging and comes with a 3 months shelf life.Available in 4 SKUs of 200 ml, 500ml, 1000 ml and 1500 ml value packs, today Olpers combinesnutrition, value and taste to deliver an unforgettable consumer experience to every individual withinevery house-hold where the day begins with Olpers.► After the success of “OLPERS” ,EFL (Engro Foods Limited) launched“OLPER’s LITE”The ideal low-fat, hi-calcium milk for adults who want to stay healthy, active and fitfor life, Olpers Lite contains all the inherent nutrients of milk that can boost energy,without the extra calories that cause weight gain.
  • 22. [Type text] Page 22Rich in iron and calcium content, Olpers Lite has been specially formulated to provide nutritionalbenefits to the growing number of health conscious consumers in Pakistan, who seek products thatcan keep their calories in check whilst ensuring their health, nutrition and well-being.Available in liquid format, today Olpers Lite is the preferred low-fat milk inthe market with all the necessary ingredients to help adults achieve optimumhealth and keep it light by staying calorie and guilt free!► Specially for the children who run away from smell of traditional milkEFL launched flavored milk. “OLPER Badam Zafran Milk”Inspired by the traditional flavors of badam, zafran and rose, OlpersFlavored milk caters to a diverse cross-section of consumers, with apenchant for natural ingredients infused in rich, creamy and aromatic milk.Launched in 2011 and available in 250 ml packs, Olpers Badam Zafran andOlpers Rose presentthe rare combination of great tasting milk fused with the natural flavors of badaam, Zafran andRose for discerning customers seeking a wholesome experience of nutrition, taste and tradition.Immensely popular within a growing segment of the market, Olpers Flavored Milk is the bestchoice for everyone craving a taste of badam, zafran and rose in every glass of milk.► Every day is a celebration with our créme de la cream!The cream of all creams, Olpers Cream is a rich, creamy delight thathas initiated a new trend not just amongst baking enthusiasts anddessert makers, but also within conventional households, where it isgenerously splurged over every-day food items as the primaryingredient to enhance the culinary experience by transforming it intoa scrumptious creamy sensation.Steadily garnering consumer loyalty and a growing market share since its launch in 2006,Olpers Cream ranks among the countrys leading brands in the UHT cream category as itcontinues to make meal-times, as well as break-fast and afternoontea rituals a rich, creamy celebration day after day.DAIRY OMUNG & TARANGAfter successful launched of “OLPERS” brands EFL launched new brandswith name “DAIRY TARANG” & “DAIRY OMUNG”
  • 23. [Type text] Page 23While “OMUNG DOBALA” is the cream.► Sourced from pure milk, Dairy Omung is our wholesome all purpose dairy brandthat provides price and quality conscious consumers with a premium milkproduct at an affordable price.Specifically targeting house-wives who consume loose milk and areresponsiblefor the health and well-being of their family.► High nutrition at a very low priceLaunched in 2010, Omung Dobala is our low priced high nutritionvegetable, fat cream that offers a healthier alternative to dairy based UHTcream.A leading asli desi ghee brand that combines vegetable oil with excess fat extracted from milk,Omung Dobala aids good health by helping consumers strike a much needed balance betweeneating right and living well.► Tarang in your tea-cup makes for sheer blissPakistans No. 1 tea-whitening brand, Tarang is a specialized tea creamer that makes the perfectcup of tea guaranteed to transport tea-lovers into a state of sheer bliss any timeof the day.The only team-creamer that combines convenience with lasting quality andreal value for money, Tarang is available in liquid and powder formats thatfurther extend the brands appeal to a wider audience.With its distinctly fresh aroma, rich taste and strong focus on enhancing thetea-drinking experience for everyone, Tarang has evolved into our biggest andmost profitable brand since its launch in 2007, after securing a firm place in thehearts of millions of tea-enthusiasts all across Pakistan
  • 24. [Type text] Page 24TARKALaunched in 2005, Tarrka is EFL premium desi ghee distinct for its pureflavor and rich aroma. A dash of Tarrka in your favorite cuisine is all ittakes to bring out the flavor of your food and leave you craving for more.OMUNG LASSIEngro Foods Launched fresh Lassi specially for the childrenAnd the people who are living in the urban areas of the country.JUICES AND NECTARS“heavenly nectars from Engro Foods”The launch of Olfrute beverages in 2010 is our first non-dairy initiative and amajor step forward towards diversifying product portfolio in high potentialmarkets.A refreshing fruit beverage extracted from pure fruits to entice and delight eventhe most discerning taste-buds, Olfrute juices are available in two SKUs of 1000 mland 200 ml and offer a wide assortment of exciting fruity flavors including redgrape, apple, guava, green cock-tail, mango, apricotand orange to cater to a diverse spectrum of urban consumers.With a highly enthusiastic consumer response to our extensive range of fruity nectars, we areconfident that Olfrute juices will soon become the leading brand in the juices and nectars category.
  • 25. [Type text] Page 25ICE CREAMLaunched in 2009, Omorés scrumptious range of ice-cream and frozendesserts are a glorious treat for everyone, be it children or adults.With its rich, creamy taste, high nutrition content and wide-range of flavors and formats, Omoré is adelectable ice-cream and frozen desserts brand that seeks to cater to a wide range of consumergroups and taste palettes.Available in more than 30 SKUs including ice-lollies, tubs, bricks, cups, cones, and sticks of differentsizes, Omoré has become a household name across Pakistan.
  • 26. [Type text] Page 26PERIODICALLY INCREASINING IN BRANDSACHIEVEMENT OF ENGRO FOODS
  • 27. [Type text] Page 27PRICE“Price is the amount of money charged for a product or service.”It can also be define as: The sum of values that consumers exchange for the benefit of having or using the product orservice. Pricing is the only element in the marketing mix that produces revenue; all other elementsrepresent costs. Price is also one of the most flexible elements of the marketing mix unlike product featuresand channels commitments, price can be changed quickly.Price includes the price strategy of the company for its products. How much customers shouldpay for a product? Pricing strategy not only related to the profit margins but also helps infinding target customer. Pricing decision also influence the choice of marketing channels.Price Decisions: Price strategy List price Payment period Discount FinancingImportant note: Engro food never works in credit terms.Pricing Strategy According the marketing plan of Engro foods, they are using Premium Pricing Strategy thereason behind the premium pricing is that they are producing Premium quality product andthey are doing premium positioning of their product. The pricing strategy for Engro foods is as such that it is differentiating its products from therest of the competitors. Its prices are higher than the local brands and are less than theinternational brands. The price of Engro foods products is competing with both the localmarket and international brands.
  • 28. [Type text] Page 28 Pricing strategy requires continuous monitoring because of changing external conditions, theactions of competitors and the opportunities to gain a competitive edge through pricingaction.An Engro food uses two types of pricing strategies for pricing theirproducts:1. Cost-plus pricing2. Value pricingCost-plus pricing:Cost-plus pricing Is used when a standard markup is added to the cost of theproduct. An Engro food uses this strategy while launching its new Products. They do so as to check their demand in the local markets beforestarting their production. Firstly, they analyze the total cost that is incurred in the process of production of newproduct(s), companys marketing and selling expenses and companys margin (the margin iskept to the minimum in this case). Secondly, if the product succeeds then they start manufacturing it at large scale. But, ifunfortunately, that product(s) does not get the expected acceptance by customers, then theystop the production of such product(s)ADVANTAGES OF COST-PLUS PRICINGThe main advantages of Cost-plus pricing are: They are more certain about costs than about demand. They do not have to make frequent adjustments as demand changes.Value based pricing:This strategy is about charging just the right combination of quality and good service at a fairprice. Engro foods uses this strategy For its well established Products This strategy helps Engro foods Generate its revenue from its existing Products
  • 29. [Type text] Page 29Price list of Engro Food ProductsProduct Pack Size Packs per CartonPrice to Retailerper CartonPrice to ConsumerPer Carton Per PackOlper Milk 1 Liter 1*12 12*84=1008 1080 90Olper Milk 1500 ml 1*8 8*122=976 1040 130Olper Milk 250 ml 1*24 24*24=576 648 27Olper Cream 200ml 1*24 24*64=1536 1680 70Tarang Milk 250ml 1*27 27*21=567 621 23Omung Dobala 250ml 1*27 27*18=486 540 20Omung Dobala 1000ml 1*12 12*67=804 840 70Dairy Omung 250ml 1*27 27*19=513 594 22Omung LassiMeeti200ml 1*24 24*13=312 360 15Omung LassiSalti200ml 1*24 24*13=312 360 15Omor’e Kulfaice-cream1Litre 1*1 1*140=140 160 160Omor’e Kulfaice-crema100ml 1*10 10*31=310 350 35
  • 30. [Type text] Page 30PlaceAccording to Engro Foods Limited EFL, “in order to succeed, you should always capitalizeon 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 currentlyOlpers 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.Supply Chain Management in Engro FoodsCustomer Need(Requirementdefined)Raw MaterialAcquisition fromcollection centerTransportationto Plant StorageProcessingPackagingWare HousingFinal Consumer(requirementFulfill)RetailersWhole sellersDistribution
  • 31. [Type text] Page 31Inbound Logistics:The receiving and warehousing of raw materials and their distributionto manufacturing as they are required.Outbound Logistics:The warehousing and distribution of finished goods.Objective of Supply Chain Management in Engro FoodsThe core objective of supply chain at Engro is that Customer needs are met by optimum ways.Overall objective is to offer customer a level of value that exceeds the cost of the activities, therebyResulting in a profit margin.Engro Foods Distribution Channels• 7 Distributors (General Trade)• ICA (International Chain Account)• Makro (10% of total Sales)• Metro (10% of total Sales)• Food Services• 2 Distributors (10% of total Sales)SalesThe Sales of Engro Foods products are divided into1. Primary Sales2. Secondary SalesPrimary Sales: Refers to the sales of the batches of products by the manufacturer to thedistributors.Secondary Sales: Refer to the sales by the distributors to the retailers from where the goods areeventually sold to the ultimate consumer. So Engro Foods is the following the
  • 32. [Type text] Page 32traditional channel of distribution that involves some intermediaries between the transfer fromproducer to the consumer.MLOGISTICSFor the Sake of transportation of the finished goods from the Engro Foods maintained warehousesthat are situated right next to the facility until the distributors, a fleet of trucks is maintained byEngro Food themselves while part of the transportation has also been outsourced or “third party”Logistics. A third party logistics provider is a firm that provides outsourced or “third party” logisticsServices to companies for part or sometimes all of their supply chain management functions.Third party logistics providers typically specialize in integrated warehousing and transportationManufacturer(Engro Foods)Distributors RetailersFinal Consumer
  • 33. [Type text] Page 33services that can be scaled and customized to consumer’s need based on market conditions and theDemands and delivery service requirements for their product and materials.As far as responsibility of distributing the goods is concerned, the out reach of the Engro Foods andthe third party logistics is limited to the distributors only. Engro Foods has almost 200 distributors allover the Pakistan. Some of the distributors deals with larger areas and larger orders while others aresmaller ones. For the larger orders finished goods are transported directly to the distributors agreedupon the point of delivery, while for the smaller distributors goods are also being delivered anddeposited in warehouse facility maintained by Engro Foods in some important locations all over thePakistan. The network distributions is very extensive and extends all the way to Afghanistan.
  • 34. [Type text] Page 34PromotionOLPERS MILKOlper’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 of BTL (below the line)activities including direct consumer and shop branding activities. Due to this aggressive marketingcampaign, the competition seems to be getting tougher. This can be gauged from the fact that Nestlere-launched its product packaging and marketing campaign just before Olper’s launch. One can also afar greater number of milk advertising billboards in Multan city than seen earlier like of Nirala, goodmilk and Nestle.Olpers MilkMedia mix for Olper’s milk includes TV, print, outdoor, radio & BTLactivities. Olpers considers radio still an effective medium becauseA & B house wives still listen to the radio on a daily basis.AdvertisingGraphics of the ad are excellent except the body copy which is quiet overloaded with information. TVChowever, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only 3seconds of branding! This type of advertising has never been practiced in Pakistan. Using celebritieslike Shan is not a good option as he has already developed his association with Mobilink. But overallOlper’s has done a great job in designing and executing its ad campaign.Olper creamColor is soothing, caption is great. But the picture of the pastry is not attractive at all, thecream is barely there. It should be mouth watering picture of a desert with lots and lotsof cream on top. Lifes a dessert is a boring statement. If you are a creative team, you canfor sure come up with something new and fun!Omung lassi.Another product of olpers. The taste that make crazy. Lots of fun and make lifeheathy. Its sales are too high. Every one like this product. Oplers make profitwith this product. Still people demands are high every day for this product.
  • 35. [Type text] Page 35Comparison with other brandsThe brand is positioned rather too narrowly towards SEC A. Nestlé’s NesVita and Calcilock campaignwas closer to a normal Pakistani consumer. Secondly, there are certain boundaries and cultural valuesthat should be respected. Olwell ad is too much for me to digest and I have no options but to switchthe channel. Engro has over done it and to make things worse it’s not as clear and well communicatedas NesVita was.Building customer based brand equityBrand equity can be defined as the effects that marketing activities have on a particular brand. Thereare different types of brand equity but the one that the marketers are most concerned about thecustomer-based brand equity. Customer-based brand equity is an important element that marketershave to keep in mind before marketing any brand. There are different ways of building, measuringand managing customer-based brand 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 established reputationin fertilization sector. Therefore, they hold a strong association in their minds for Olper’s as well.There are different nodes that connect ENGRO to Olpers in the customers’ minds. The ads for Olper’sdo not show any link with ENGRO foods but the HR managers keep mentioning ENGRO in every pressrelease of Olpers that is how people have associated Olper’sSuccess of olpersThe 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 themilk sector it is easier forcustomers to make differentassociations for each brand intheir minds. Therefore, a person’sability to recognize and recall abrand under a given set ofproduct categories becomeseasier. Olpers has beenaggressively promoted which iswhy customers can recognize iteasily. The red color and the shelfspace that the brand commandsmake it even more prominentfrom the rest of the brands.
  • 36. [Type text] Page 36Oplers packingAlthough 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 attributes suchas the packaging of red color and usage imagery that is portrayed in every advertisement of Olper’s,can be distinguished from the competitors’ brands. Olpers is promoted with the viewpoint that themilk is meant for all-purposes. This obviously shows the usage imagery of the brand. When it comesto the benefits that customers look for in milk are clean processed milk that is good for health and canbe used for all purposes. Olpers provides its customers with functional and experiential benefits.Milk for bonesThe functional benefits include healthy bones,high calcium, good taste, while experientialbenefits are that every morning starts withOlpers milk that is the tag line subah BakhairZindagi.Other experiential benefit is the variety that hascome into the milk sector due to another brand entering the market. People can now choose from anumber of brands for milk and especially the variety seekers will definitely want another brand to enterthe market. If, in the beginning, consumers are not willing to buy the brand then it might be due to suchfactors as low involvement in that product category or due to brand loyalty towards brands like Nestle andHaleeb. However, the color of packaging in the grocery storesmay a ttract customers enough to make them buy it, thus the brand attitude In this case helped thebrand to form the basis for customer behavior. Olpers has favorable, strong and unique brandassociations in customers’ minds.Best qualityIt is favorable because milk is a need and clean hygienic milk that is free of bacteria and germs is whatconscious customers are looking for. Due to awareness about health and drawbacks of lose milk thecustomers are further in search of processed milk. The association is also strong because there is avery string cue linked to Olpers and that is ENGRO foods. Usually people thin Olper’s as a sub brand ofENGRO foods. Due to this reason customers perceive Olpers’ as a high quality brand that will come upto their expectations.
  • 37. [Type text] Page 37Unique imageOlpers 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.Distinctive nameOlpers itself is a very distinctive name that is easy to remember and one that will stay in the memoryfor a long period of time. It even serves to enhance the image of the brand as all-purpose milk. In thesame way, Olwell serves the purpose of all is well in terms of customers’ health Therefore, the choiceof brand identity when building the brand equity has been very good. These create brand recognitionand recall all at the same timeCredibilityOlpers 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 the indirectapproach with different qualitative and projective techniques (the questionnaire contained somequestions related to sentence completion and brand personality description). They used this tounderstand 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 realize the significanceof marketing activities and their effect on creating more value for the brand, and so by influencingbrand knowledge, sales can be improved. Olpers is concentrating on the emotional aspect in their adsin order to focus on the core need of customers that can be satisfied. Olpers has also funded Women’s
  • 38. [Type text] Page 38exhibition in Karachi a few months ago and currently is sponsoring cricket World Cup 2007, andfurther adding more value to the brand and managing customer-based brand equity.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 and development. Wealso believe in earning the trust of our stakeholders by acting responsibly within the communities that weserve. To help achieve these goals, the company has been making sizeable contributions for various CSRprojects. ENGRO’s urea manufacturing site is located in Daharki district Ghotki. It operates in Daharki forpast 40 years now. Since the company has grown from this single manufacturing facility to a trulydiversified corporate entity, it owes a lot to Daharki. The company’s commitment to this part of Sindh isevident in its social development projects as the bulk of Company’s contribution budget is spent in andaround Daharki. The company has interventions in number of areas like education, health, environment,sports, and infrastructural improvements.
  • 39. [Type text] Page 39ConclusionsEngro Foods is among the biggest and fastest growing conglomerates in Pakistan with a vision tocater to local needs with products conforming to global standards.Highly passionate about providing millions of people across the length and breadth of Pakistan andbeyond with the ultimate brand experience, our product portfolio comprises some of the countrysbiggest and best selling brandsEngro Food is a quality conscious company and customer focus company. Customer is its first priority.Engro launched only that product, that appeal customers and satisfy customers needs and wants.Engro foods is also customer health conscious company. And their products fulfills also necessaryvitamins.Price is calculated according to customer affordability and easily available in all over the country.By using different types of promotion methods Engro creates the awareness in the public.