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Final and final

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Segmentation based project on ENGRO FOODS

Segmentation based project on ENGRO FOODS

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  • 1. In the name of ALLAH, AR-Rahman, AR-Raheem. Marketing Report on Segmentation, Targeting and Positioning.Submitted to: Mr. Faisal IqbalSubmitted by: Muhammad Rizwan MBA-B6-001 Muhammad Wasim Hashim MBA-B6-029 Farina Sadiq MBA-B6-055 Muhammad Kamran Sajjad MBA-B6-047 COMSATS Institute of Information Technology, Sahiwal
  • 2. AcknowledgementWe are grateful and thanks to our Allah, Who isthe merciful and beneficent to help inconducting this Report.We dedicate this work to our parents andpersons who pray for our good future. In thelast, we thanks and also appreciate ourMarketing Instructor MR. FAISAL IQBAL,whose keen interest and coordination get thiswork completed. Table of contents
  • 3. Engro Foods’ History ..........................................................................................................4Vision ..................................................................................................................................4Core Values .........................................................................................................................4Plan of Action......................................................................................................................5 Product ............................................................................................................................5 OLWELL Hi-Cal Lo-Fat (HCLF) Milk ......................................................................5Segmentation and Targeting................................................................................................7 Segmenting and targeting the market for Olwell ............................................................7 Geographic segmentation.................................................................................................7 Demographic segmentation ............................................................................................7 Psychographic segmentation............................................................................................8 .........................................................................................................................................8 Behavioural segmentation ...............................................................................................8Positioning and Differentiation ...........................................................................................8 Placement & Distribution ...............................................................................................9 Promotion ......................................................................................................................11
  • 4. Engro Foods’ HistoryEngro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of adiversification process at the Engro Group. The plant located at Sukkur on 23acre land, has the raw milk reception capability of 300,000 liters per day andUHT milk capacity of 200,000 liters per day. The plant has been established at acost of Rs. 1 billion which provides direct employment to 750 people. EngroFoods has entered the Food business through milk processing and sale with thecompany’s vision to pursue growth opportunities based on country fundamentalsand own strength.Vision"Our vision is to become a fast expanding mega foods company. To achieve ourvision, the company will initially focus on dairy by investing a substantial amountin plant, milk collection capability and marketing. We are making concrete effortsto expand in and beyond Pakistan; through strategic international alliances, toeventually become global."Core Values1. Leadership2. Innovation3. Diversity and International focus4. Quality and continuous Improvement5. Open communications6. Individual growth and development7. Safety, Health and Environmenthttp://www.engro.com/our-company/
  • 5. Plan of ActionIn this report, we have described about the product of EFL’s “OLWELL. Companyis now introducing this Product in Sahiwal. EFL’s marketers focus is Olwell milk.Company has segmented the market and narrated the market mix while havingSahiwal market in mind. It would be beneficial for the company to launch Olwellin Sahiwal city.Our following report is aimed at examining the marketing mix of Olwell which weare going to launch it in Sahiwal. Olwell company also make a plan to createdifferentiation from the competitors. Company also decide to promote the productafter increasing the sale of the product.ProductOLWELL Hi-Cal Lo-Fat (HCLF) MilkLaunched on December 15, 2006, Olwell is a low-fat, high-calcium milk with therichness of pure milk. It is an ideal choice for weight-watchers and heart patients.It is also high in calcium content, which prevents osteoporosis.
  • 6. Product line:► Olper’s Milk3.5% animal fat base in 250 ml, 0.5 liter, 1 Liter,► Olper’s Cream(40% fat)► Olwell Milk0.9% fat (low fat high calcium recipe) in 1 Liter► Tarang Milk
  • 7. Segmentation and TargetingSegmenting and targeting the market for OlwellIt is difficult for any one company to engage in mass production, massdistribution and mass promotion for its product. The coverage the massproduction through advertising and distribution channels is very costly.Therefore, companies segment the market so that they can target the group ofcustomers who share similar needs and wants. Customers want milk full ofcalcium, low fat, carefully processed, and good for health and bones. Keepingthese things in mind Olwell’s market has been segmented.Geographic segmentationEngrro Foods Limited has made segmented the market for each of its product. But inthe case of Olwell, EFL has segmented the market more carefully because it hasunique qualities among the product line.For the purpose of targeting the company has divided the Sahiwal city into threemain distinctive parts named as Farid town and Tariq bin ziad colony, old civillines and rest of the city.Demographic segmentationEFL’s products are not bounded to any particular age, gender or lifestyle. The brandis meant for all the users in higher upper or middle class families. Processed milk ismostly used by upper class and usually lower class does not use it. The reason maybe that they are price sensitive or they prefer conventional milk. As far as upperclass is concerned, it can be said that they want a special kind of milk which is betterfor their health too. And Olwell may be good choice.With the Sahiwal perspective we can say that company has to segment the marketby keeping Sahiwal in view. If it comes to launch Olwell in Sahiwal, it should targetage group from 20 to 35 years. But for girls this age range can start from the age of15 year. And gender does not matter a lot. Educated people are also segmentedby company because they are more conscious about their health.
  • 8. Psychographic segmentationOn the basis of psychographics, factors such as personality characteristics, lifestylesand values are considered at the time of segmentation. For Olwell, company hassegmented the market towards distinctive people, whose lifestyles is modern andcontemporary. For example the ads for Olwell mostly show people while exercising.Secondly, they show a model girl in red dress, with smart figures. The EFL’sproducts especially Olwell has been targeted at such persons. Many of thecustomers will make their first purchase because they want to try something new.As far as psychographic aspect of the Olwell is concerned, it should be targeted tothose Sahiwalians who wants to be distinctive and unique. Olwell is demanded tothose who are conscious about their health and want to use such milk which has lowfats.Behavioural segmentationCompany targets regular as well as first time user in behavioural segmentationstage. Olwell is not for special occasion but it is for special purposes like forenhancing health. So, for Sahiwal, company is focusing to those customers who arealready using EFL’s products as well as those who has exposed to theadvertisement of it for the first time.Positioning and DifferentiationPositioning involves designing the product and image that will occupy a distinctiveplace in the minds of the target market. As can be seen, nestle (Nesvita) and Haleeb(Skimz) have the largest profit margins and market share in the milk industry. Thusthe marketers at Olwell have decided to create its own unique image and thenstrengthen the position in the customers’ minds. They have done this by taking anumber of following steps:
  • 9. 1. Olwell Packed in 6-layered Tetra Pak Brick Aseptic good packaging witheasy-to-open plastic cap, it comes with a 3 months shelf life.2. Olwell in red color and is quite different and distinctive from the typical green andblue packing used by other competitors.3. Olwell is positioned to selected market segment who are keen for healthy milk. Itslow fat and high calcium property positions it a better choice for such people.Tagline of any product helps a lot in positioning purpose. Tagline of Olwell isThis tagline gives the thought that this milk energizes the customers. And it is veryhard to give up it.The marketers should use different positioning for Olwell:a. They should use the attribute positioning for Olwell milk. The main theme of theproduct should be that it has all possible attributes for health conscious people. Ithas made it possible for those who wants to use milk without its fat contents.b. They used the benefit positioning for Olwell. The product is positioned as deliveringthe benefit of helping to reduce weight and for healthy bones.Placement & DistributionEFL has its distribution system in 80 plus cities of the country. Its products canbe seen in every small and big city. Distribution system of any company startsfrom its suppliers. Which are farmers here. EFL has strong and close relationshipwith the milk producers. It also claims to carrying out some poverty alleviationprogrammes in villages where from it collects milk. This is the reason why it issuccessful in becoming one of the main players in this industry. But all of thisdiscussion relates to EFL’s products.And, here, our product is Olwell. Olwell is not distributed widely like otherproducts of EFL. It is because of its distinct positioning. When we want to
  • 10. distribute in the Sahiwal city, those existing retailers will be right choice who haveEFL’s products. While focusing those areas which are specified in thesegmentation.For better placement strategy , EFL has been successful. Handsome benefits toretailers are inducing them to provide EFL’s products a proper shelf space. But inSahiwal, our focus should be related shops at College Chowk, high street, andbig stores, along with small stores too.Bright and unique colours of its products make customers realize about itsexistence. This is very crucial in stiff competitive market.PriceEFL IS pursuing the competitive pricing strategy for its products. In competitivepricing the price of the product is determined considering the price of majorcompetitors like Nestle, Haleeb etc.In fact, Pakistan is one of the largest milk producing countries where almost 80%milk is distributed through conventional means. And rest of the 20% market iscaptured by many companies amongst which Nestle and Haleeb arenotable.Targeting of Olwell is such a market segment which is willing to pay extra forsome added contents in the product. Olwell has its competitors in the market namedas Nesvita, which also targets the same market segmentWhen it comes to the case of Sahiwal where we are going to launch the product,Farid town and Tariq bin ziad colony should be our main focus. We are addressingthe price aspect of Olwell, so obviously segmentation under income considerationwill help us here. In the result we have got above mentioned two areas for ourpurpose.
  • 11. PromotionAs far as promotion of Olwell is concerned, simply TVC’s, print ad are importantchoices. Any how, we suggest that they have to rely on print and electronic media forpromotion of Olwell.In Sahiwal, EFL has to use billboards and cable TV for advertisement. It is seen asvery effective means to position any brand in the minds of people in specific area.Recently, many advertisements are on aired on cable TV in Sahiwal. Peopleperceive, well through those ads. So same should be adopted here in Sahiwal, forOlwell.Display centres can be a good way to introduce Olwell in Sahiwal. In populous andcrowded areas of market, these display centres can attract attention of manycustomers.Events can also be organized in educational institutions, parks and other captiveenvironment to make awareness of Olwell.

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