Engro Corporation is a Pakistani multinational with subsidiaries in fertilizers, foods, chemicals, energy and petrochemicals. Engro Foods is a major subsidiary established in 2005 and is now a leading player in Pakistan's dairy industry. It has over 1,000 employees and markets products under 12 brands with a focus on Olper's milk and Omoré ice cream. While it faces competition, Engro Foods has pursued a differentiation strategy through emphasis on quality, taste and wide availability. The report recommends diversifying product lines, expanding farms and processing capacity, and exploring new markets to strengthen its position.
Swot analysis of engro foods, created by Aabaed ul rehman,M.com.UAFAbaed Rehman
SWOT ANALYSIS OF ENGRO FOODS LTD.
Creadted by Aabaed ul rehman,M.com.
Institute of business management and social sciences,University of Agriculture Faisalabad.
Swot analysis of engro foods, created by Aabaed ul rehman,M.com.UAFAbaed Rehman
SWOT ANALYSIS OF ENGRO FOODS LTD.
Creadted by Aabaed ul rehman,M.com.
Institute of business management and social sciences,University of Agriculture Faisalabad.
This presentation is about the Ice Cream industry in Pakistan, telling about the five major companies doing business in this industry including Hico, Yummy, Igloo, Wall's & Omore Pakistan. Market Share, Promotion Activities and Wall's strategies to beat others are part of this presentation.
Engro Corporation Limited (formerly known as .Engro Chemical Pakistan Limited.) is one of the largest industrial corporations in Pakistan.
It operates in various sectors
Fertilizer
Food
Energy
Chemical
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Its a presentation on a brand most needed in Pakistan due to its healthy characteristics, an Ice cream made of cow milk. With drastic changes in Pakistan's market, a risk worth taking for a product defined for neiche market.
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The Indian Dairy Food market is comprised of various national and multinational players that specialize in developing various value-added dairy products. The market for dairy products in the India is changing at a brisk rate.
In the post-white revolution, Indian dairy industry has shown constant growth in milk production as well as in per capita milk availability.
World milk production - Increased by 50 % during the last 3 decades.
482 million tones in 1982 to 852 million tones in 2020.
We live in a country which is not only the largest consumer of milk in the world but which also produces about 200 million tonnes of milk every year! Thus, the dairy farming business is gaining prominence in today’s world.
The issues for future approach to Dairy Development should be:
Market oriented activities with a fair pricing policy.
Strengthening of farmers' organisations and gearing support programmes towards small
holder production systems.
A supportive environment for the introduction of small scale milk processing where applicable to give the producer access to a wider share of the market.
To create new and strengthen existing networks for the exchange of information, experience and training facilities.
India ranks first among the world’s milk producing nations since 1998 and has the largest bovine population in the world.
Milk production in India during the period 1950-51 to 2017-18, has increased from 17 million tonnes (MT) to 176.4 MT as compared to 165.4 MT during 2016-17 recording a growth of 6.65%. FAO reported 1.46% increase in world milk production from 800.2 MT in 2016 to 811.9 MT in 2017.
This represents sustained growth in the availability of milk and milk products for our growing population.
Trends of milk production and value added product by the cooperative and organized private sector in India.
Dairying has become an important secondary source of income for millions of rural families.
Of total milk production in India about 4.8 percent milk is either consumed at the producer level or non producer in rural area. The balance 52 percent of milk is marketable surplus available for sale to consumers in urban areas.
Out of marketable surplus it estimated that 40 percent of the milk sold is handled by a organised sector.
The Indian dairy market reached value of nearly INR 6,911 Billion in 2016, growing at a CAGR of 13% during 2010-2016. Some of the major factors driving the growth of the Indian dairy market are rising working-population, increasing disposable incomes and health consciousness among the consumers. Additionally, the government is also taking active participation in advancing and promoting dairy farming practices to promote the production and quality of milk.
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4. Engro Corporation
Introduction:
EngroCorporation is a Pakistani public multinational
corporation based in Karachi with subsidiaries involved
in production of fertilizers, foods, chemicals, energy
and petrochemicals. It's major subsidiaries include
Engro Fertilizers - which is one of the largest fertilizer
manufacturers of the world, Engro Foods which
manufactures, processes and markets dairy products,
frozen desserts and fruit drinks including the ice cream
brand of OMORÉ. Other major subsides include Sindh
Engro Coal Mining Company, Engro Powergen
Limited and Engro Polymer & Chemicals Limited
6. Engro Foods Ltd
History
Engro Foods Limited was formed as a wholly owned
subsidiary of Engro Corporation in 2005.
It start its operation in 2006 and become major player in Food
industry.
It launches multiple products.
Ice Cream
Flavored Milk
Fruit Juices
Milk Powders
7. Vision & Mission Statement
Vision Statement
“To be the premier Pakistani enterprise with a global reach,
passionately pursuing value creation for all stakeholders”
Mission Statement
“Our mission is twofold, to help farmers maximize their farm produce
by providing quality plant nutrients and technical services upon which
they can depend. To create wealth by building new businesses based
on company and country strengths in petrochemicals, information
technology, infrastructure, food and other agriculture sectors.”
8. Objectives and goals
Engro Foods main objectives are to supply everyone
their favorite Olper’s Milk and to satisfy the
consumer need and wants. EngoFoods second
objective is to increase the value for the stakeholders
and company value. We want to be the major player
in the food industry.
9. Introduction to Leaders
Mr. Hussain Dawood
(Chairman)
Mr.Asad Umer
(Ex. President & CEO)
Mr.Ali-u-dinAnsari
(President & CEO)
10. Quick Facts & Figures
12 Brands
1,243 Employees
45% Market Share of Dairy Products
Market Share in
310 Cities in Pakistan
18 states in USA
4 Provinces in Canada
18th Largest Customer of Tetra Pak World Wide
2nd Largest Company of Chilled Milk Collection of Pakistan
900 Milk Collection Centers
35,000 farmers directly linked with EFL
13. Business Level Strategy
Engro Foods wants to achieve more
market share than other competitors.
In order to achieve the more
competitive advantage company uses
the differential strategy by
differentiate its products from other
competitors. Engro Foods differentiate
itself in the form of taste, quality and
availability of their product in the
market.
14. Corporate Social Responsibility Of Engro foods
Our commitment to Corporate Social
Responsibility (CSR) therefore extends
far beyond mere lip service, and is
deeply embedded within the very
core of our business. Besides striving
for good corporate governance by
preventing unnecessary wastage of
natural resources, investing in our
human capital and sharing our
business gains with all our stake-
holders, we also feel a great sense of
responsibility towards our
communities.
Because we believe in investing in
tomorrow by taking ownership to
inspire a lasting change today.
18. Engro Market Segmentation
Geographic
• Region: urban
Demographic
• Age: Family except children below 5
• Gender: both
• Income: moderate and high
Behavioral
• Occasions: special occasions and daily purpose
• Benefits: loyalty and convenience
• Quality status: strong
Psychographic
• Life Style: strivers and achievers
19. Positioning Strategy Of Olpers
Marketing Positioning:
Competitive advantage from Nestle and Haleeb.
“subha bkhair zindagi “
targeting the housewives and teenagers
who are family oriented.
Product Features:
Olpers is thicker and stronger than Nestle and
has a strong aroma and taste.
20. User Strategy
• Speaking about Olper’s, Aisam-
ul-Haque said,
“Olper’s has been my preferred
choice of milk brand since
before this partnership and I
feel this ad campaign is a true
picture of my healthy lifestyle. I
definitely recommend Olper’s
as an integral part of one’s
everyday balanced diet.”
22. Product
Product Variety:
A wide range of dairy ice creams and frozen
deserts.
Quality:
Premium ice cream rich in calcium and which is
fresh every time.
Features:
Made from fresh milk and ice cream and high
nutrition.
Product Names:
Olpers, Olfrute, Omore Omung Lassi, Dairy
Omung Olwell, Frozen ice pops.
23. Product
Packaging:
High quality and eye catching packing,
Packing color ranges red, blue, yellow,
orange and green. Packaging is colorful
Sizes:
Sizes includes 1ltr. And half liter. For dairy
milk, chic bars serve ice cream are of
different sizes.
Service
Satisfying customers with warranty and
money back guarantee.
Returns:
Only in case when products are expired.
24. Price
Cups Rs 20
Soft Serve ice cream Rs 10-50
1Ltr. Ice cream Tub Rs 150
2 Ltr. Ice cream Tub Rs 275
Cones Rs 30
Ice pop Rs 10
Olpers per Ltr. Rs 105
Olwell Cream Rs 80
• The prices of its competitor (WALLS) more or less the same and price of
liter ice cream is less then Walls which is great strategy
• Omore offers a 16% margin to retail traders and shop keepers which are
slightly lower than Walls, who offer a margin of 20% to shopkeepers. They
are new in the market and do not have the same relationship with
retailers like Walls
25. Place
Channels: Sells directly to the end user through retailers and
shopkeepers. This is trend in Pakistan followed by many
FMCG’s.
Coverage: Engro Products when initially launched is only
available in limited areas on Punjab and now it is available
throughout Pakistan. The company started off its operation
in Punjab because it has the largest population.
Transport: Engro products are transported to retailers and
shopkeepers through private transportation firms and also
through few trucks owned by company
Locations: Available at large/medium and small sized bakeries,
grocery stores and pharmacies in Pakistan-Sell their
products directly to consumers using cycles and their own
personnel. This strategy has been in practice for many years
and is being used by Walls and Hico.
26. Promotion
Advertising:
Vehicle Advertising, Outdoor billboards, Point of sale Displays and Ads on
televisions. Advertisements are mostly colorful reminiscent to their ice
cream packaging. When Engro foods was initially launched they adopt a
unique way of advertising.
Message:
Linked Engro foods with joy and happiness so their tagline/ slogans is
“ ART OF HAPINESS “
linked with consumers and got review of different product using various
medium social communications e.g. Facebook and Orkut linked their ice
cream with other brand names like Olpers and Olwell. This promoted their
other brands as well which are also relatively new in the market.
28. Strength
• Quality products
• Suitable Brand Names
• Good Packaging
• Motivational Slogans
• Best Marketing Campaign
• Strong Relationship with Farmers
• Strong back by Engro Corporation
• Good Consumer Response
• Strong Research & Development
29. Weaknesses
• Depend on Tetra Pack
• No Powder Milk Production Ability
• Engro Foods have 40 milk collection center in
Pakistan which are not enough for increased
demands
• Have only one Dairy farm which is not enough
provide required quantity of Milk
30. Opportunity
• Increase in consumption of processed milk by
the consumer
• Population growth
• High migration rate of people to Cities
• Flexible Government policy for food industry
• Improvement in Literacy Rate
• Have enough funds to expand their Operations
32. Threats
• High Inflation Rate
• Law and Order Situation
• Low purchasing power of the
People
• Giant Competitor in the
Market
• New Companies Arrival
33. Recommendations/ Suggestions
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.