This document provides an analysis of Engro Foods Limited (EFL) and its marketing issues in Pakistan. It begins with an acknowledgment and includes an executive summary, introduction on EFL, and analyses using SWOT, PESTEL, the four Ms, Hofstede's cultural dimensions model, and brands. Some key findings are that OLPER's Milk and Tarang are successful due to their nature and low price respectively, but other brands have issues with product quality, promotion, and cultural appropriateness of ads. Recommendations include focusing more on other brands, improving OMORE through pricing and ads, and conducting better research before new product launches or ads.

1. ENGRO FOODS LIMITED
(Final Project: Marketing Issues in Pakistan)
Submitted to: Sir Nabeel Nisar Submitted By:
Ayesha Sajjad
Mahboob Ali
Akhlaque Ahmed
Muhammad Noman
Dated: 27th April, 2015

2. ACKNOWLEDGEMENT
We are grateful to our ALLAH, Who is the most gracious, beneficent and helpful in completing
the project. In performing our assignment, we had taken the assistance and guideline too of some
respected persons, who deserve our noteworthy appreciation. The completion of this assignment
gives us much gratification. We would like to express our gratitude to Mr. Nabeel Nisar,
instructor of subject, MARKETING ISSUES IN PAKISTAN for giving us helpful guidelines
throughout the numerous consultations for this assignment.
Many people, especially the team members itself, have made prolific and useful suggestions on
this report which gave us motivation to improve this assignment. We thank all the people for
their help directly or indirectly to complete this report assignment.

3. Contents
Executive Summary .....................................................................................................................4
INTRODUCTION........................................................................................................................5
SWOT ANALYSIS......................................................................................................................6
PESTEL Analysis .........................................................................................................................7
POLITICAL FACTORS:.........................................................................................................7
ECONOMIC FACTORS:........................................................................................................7
SOCIAL FACTORS: ...............................................................................................................7
TECHNOLOGICAL FACTORS: ..........................................................................................7
ENVIRONMENTAL FACTORS:..........................................................................................7
LEGAL FACTORS:.................................................................................................................8
Four Ms Analysis..........................................................................................................................8
MAN:..........................................................................................................................................8
MACHINE: ...............................................................................................................................8
MONEY:....................................................................................................................................8
MANAGEMENT: ....................................................................................................................8
HOFSTED’S CULTURAL DIMENSION MODEL ...............................................................9
HIGH/LOW INDIVIDUALISM: ...........................................................................................9
MASCULINITY/FEMININITY: ...........................................................................................9
HIGH/LOW POWER DISTANCE: .......................................................................................9
LONG TERM ORIENTATION:............................................................................................9
BRAND ANALYSIS.................................................................................................................10
ISSUES WITH SOME BRANDS ........................................................................................10
ISSUES IN 4P’S OF MARKETING MIX..............................................................................12
Recommendations ......................................................................................................................14
Conclusion...................................................................................................................................15
APPENDIX .................................................................................................................................16
References:..............................................................................................................................16
Turnitin Plagiarism Report....................................................................................................17
Word Count .............................................................................................................................18

4. Executive Summary
ENGRO FOODS LIMITED (EFL) started its operations in 2005 and is a fully
owned subsidiary of ENGRO CORPORATION LIMITED. EFL is getting enormous success
since its birth as Olper’s Milk, Tarang and Omore are among its best-selling brands. Engro has
introduced EMAAN payment system for farmers and it is giving training to farmers for properly
feeding animals and it is also providing medical assistance to farmers.
Analyzing the EFL with respect to different marketing models like SWOT,
PESTEL, HOFSTEDE CULTURAL DIMENSIONS etc, some major issues are found with the
company. It has analyzed that OLPER’S MILK and TARANG are successful brands having very
few issues but the others brands are having many issues with them especially in Product and
Promotional activities.
The main reason for OLPER’S MILK’s success is its nature itself that is used for
all purposes and also it’s attractive and family oriented TVCs every year specifically in
RAMZAN, while TARANG is most preferred tea whitener because of its low price. OMORE is
also getting fame among consumers now a days because of word of mouth and its taste and
quality. Furthermore, current infrastructure development in country like construction of
Motorways, Pak-China Economic Corridor will be the best opportunities to EFL to expand its
business with low cost.
It has been observed that major issues with EFL is with not doing attractive
promotion of its some products and it has also faced some quality issues with some of its
products. Olfrute juice has both of these issues as its taste has not been differentiated with its
competitors’, its quality is less than competitors’ and its TVCs are not so much attractive that
they should made proper connection with its product. While on the other hand, the idea of
offering a traditional desi drink i.e. Lassi in tetra pack is not liked by people. Although now a
days, OMORE is getting success but there are also some issues with this brand. First it has
charged high price as compare to its strong competitors like Walls, etc and secondly its ads could
not make connection of happiness with an ice cream. Moreover, its ads are effecting negatively
children as they are teaching children to disobey teacher, eat in class and fight for ice cream.
Many other issues are found with some other products of EFL like OLWELL ad (NOW
OLPER’S LITE). It was against of Pakistani culture so, now it has re-launched the OLWELL
under the name of OLPER’S LITE, but there is no TVC for this product. EFL has only targeted
the professionals and upper middle class in its OLPER’S LASSI’s ad, while LASSI is for
everyone and it a refreshing drink rather than fun drink as promoted in OMUNG LASSI.
It seems that marketing managers of EFL are not doing comprehensive research
before launching its new product or making ads for new products. It has been observed that
TVCs of every product except OLPER’S MILK are having issues with them as the products are
connected properly with product’s nature.
EFL should also focus on its other brands rather than focusing on some of its
famous brands like OLPER’S, TARANG and now OMORE. EFL can get maximum benefit of
its OMORE brand as it is quality brand but the need is to reduce the price and make effective
TVCs and giving incentives to retailers. It should also target young girls and boys by making
TVCs for its OLPER’S LITE low fat brand and also promoting it by arranging health awareness

5. sessions in colleges/universities. EFL mangers should conduct a research before launching its
new product that either demand exists in market or not.
INTRODUCTION
ENGRO FOODS LIMITED (EFL) is fully owned subsidiary of ENGRO
CORPORATION. ENGRO CORPORATION was found in 1957 under the name of ESSO
CORPORATION LIMITED. In 1978 it was renamed as EXXON CORPORATION LIMITED
and then in 1991, it was given the name of ENGRO CORPORATION LIMITED. And till now it
has been growing as one of the largest industrial corporation of Pakistan. The company has a
well-diversified portfolio. It is currently operating 6 different business i.e. Engro foods, Engro
fertilizers, Chemical storage and handling, Trading, Energy, and Petrochemicals.
EFL has started its operations in 2005 and developed it to get huge market share
in just few years. Engro brands are considered to be the high quality brands and charge
competitive prices. EFL’s growing market share covers over 8 regions and 300+ cities in
Pakistan as well as over 18 states in USA and 4 provinces in Canada, where our halal food range
continues to attract a wide cross-section of consumers. Engro has currently following brand
portfolio.
 OLPER’S:
o OLPER’S LITE (LOW FAT)
o OLPER’S MILK
o OLPER’S CREAM
 OLPER’S TARRKA (DESI GHEE)
 Y-FROOTER (FRUIT FLAVORED)
 OLPER’S LASSI
 TARANG (TEA WHITENER)
 OMORE ICE-CREAM
 OMUNG DOBALA
 DAIRY OMUNG (previous)
According to EFL’s website, 5 million people nationwide use its products daily
and its workforce comprises of more than 1500 employees. ENGRO FOODS’ most successful
products are: OLPER’S MILK, TARANG and now a days OMORE ice cream. OLPER’S MILK
is successful for its nature of use that it uses for all purposes, also for its attractive and family
oriented TVCs while TARANG is for its low price and now OMORE is for its taste and quality.

6. SWOT ANALYSIS
SWOT Analysis is also known as situational analysis. It is internal and external analysis of business
which plays essential role in business growth.
Engro Foods has good reputation because of acceptance of Olper’s and Tarang milk in the
market and most of Engro’s revenue is generated through the sale of these two products. Olper’s
Ramazan campaigns are contributing factor to its success. Engro has advanced technology for
STRENGTHS:
 Acceptance of Olper’s and Tarang milk in market
 Personal relationship with farmers
 Positive Response From Customers
 Third Generation Plant
 World Wide Fame
 Olper’s Ramzan campaign
 First to introduce heli-cap packaging
 Professional Dairy Collection System
 Introduced EMAN payment system for farmers
 Good Market Share
 Qualified Work Force
 Strong Consumer and Product Research
 Integrated supply chain
 Bactofuge Technology
 Strong Financial Position
 Deep rural procurement touching 100,000 +
farmers & 12,000 Villages
WEAKNESSES:
 ENGRO FOODS is having only one dairy farm
of its own
 OLWELL TVC: OLWELL ad is totally
against the life style, culture and religious
beliefs of Pakistan
 Collection & Distribution Costs are high
 Has less diversified line of dairy products
 Concentrated diversification
 Re-launching of failure products
OPPORTUNITIES:
 Flexible government policies for food industry.
 Pak-China economic corridor and development
of motorways
 Expansion of Food Business
 Market Capitalization
 Diversification
 Export Opportunities
 Mergers and acquisitions (may eliminate the
competition)
 Competitive Edge (innovation and
differentiation)
 Increasing consumption of UHT- processed
MILK
THREATS:
 Competitors (such as: Nestle, Haleeb, Walls
and also the new entrants)
 Mature Market
 High inflation rate
 International Marketing Standards
 High Taxes
 Seasonal Factors
 Political Instability
 Price Consciousness of consumers

7. milk processing that gives it competitive advantage. But some of EFL’s ads like: (Omung)
Olper’s Lassi and Olwell ads which are opposed to Pakistani culture and also re-launching of
failure products is creating negative impact on consumer minds.
PESTEL Analysis
Organizations’ success or failure is depending upon the internal and external factors of their
environment. That’s why the organizations study their environment in order to forecast the
changes and then make strategies accordingly.
POLITICAL FACTORS:
EFL makes strategies according to law and obeys the law made by government for the wages,
trade policies, taxes, not using the child labor and it completes its responsibilities. Political
factors are big problem for the EFL such as instable government, government policies and strike
which affects the whole supply chain management of EFL and resultantly increase the cost of
doing business.
ECONOMIC FACTORS:
Pakistan is developing country and its economy is growing. In Pakistan, the interest rate is high
due to IMF’s loan which affected the purchasing power of public. And country’s unemployment
rate is also high which has benefited the EFL with availability of cheaper labors. Other problems
such as energy crisis are also the hurdles in achieving the long-term goals of EFL.
SOCIAL FACTORS:
Pakistan’s 55% population is consisting of 0-24 age and 25-64 is 41%. Due to poor conditions of
economy, people aren’t much aware and health conscious. EFL has changed the attitudes of
people by providing employment and creating awareness in public about health and the packaged
milk. It has also changed the life styles of Pakistani people by its Bactofuge technology and the
milk yield has increased by introducing its new methods to farmers as well and has made a
culture where employees are motivated to work and has diversify of workforce.
TECHNOLOGICAL FACTORS:
Pakistan is a developing country where it strongly needs the advanced technology, good
infrastructure, transport, and seaport and railway development. EFL has the advanced technology
and for proper utilization, it needs the proper energy supply which is again lacking in country.
And for that EFL is working on the coal energy project with the collaboration of government.
ENVIRONMENTAL FACTORS:
Environmental changes have huge impacts on the country as Pakistan has six metropolitan cities
and different industries are operating in it. The waste of most of those industries is mixing up in
air and water, which has made air and water polluted. EFL is the first Pakistani company which
is building green power houses in Sindh Province for the better environment and good health of
the people.

8. LEGAL FACTORS:
Although in Pakistan there is no implementation of legal regulations and policies, still EFL is
following all the rules and regulations like child labor, minimum wage rate, taxes, and
environmental protection, this has created competitive advantage for EFL in growth and
sustainability.
Four Ms Analysis
MAN:
ENGRO FOODS LIMITED (EFL) employees are highly trained and skillful. EFL has employed
about 1500+ to elevate consumer delight worldwide, EFL is considering its employees as key
factor for the growth. EFL is paying higher salaries with incentives. It also provides the
environment, where employees can share the ideas about issues in products and quality with
executives which keep them motivated. EFL is also investing on the training of its employees to
enhance their skills, knowledge and potential.
MACHINE:
EFL is using advanced technology to make the healthy products. EFL has the bectofuge
technology which has made it more competitive than its competitors and due to the innovative
technology; its cost has been decreased. It has eco-friendly technology for the better health of its
employees and the society too.
MONEY:
EFL has very strong financial support domestically and internationally as it has good relations
with Habib group, Agha khan group, Faysal bank and HSBC etc. EFL is paying more to its
employees than competitors for keeping them motivated. It is also paying good amount to
farmers who supply milk to EFL and it has introduced “EMAN” system through which it pays
directly to farmers to provide direct benefits to them.
MANAGEMENT:
EFL’s management is making strategies according to the country’s environment and setting
goals that are SMART. It asks employees to give suggestions for its new and existing products.
Its management is making strategies and implementing them in a way which requires
involvement of all employees from top to bottom level. Its management is also helping
government to make business friendly policies.
There are some issues with managers who derive marketing strategies. Except Olper’s we have
seen issues with ads of almost all the products like: offering a cultural desi drink in tetra pack
packaging and then promoting it as a fun and love drink.

9. HOFSTED’S CULTURAL DIMENSION MODEL
HIGH/LOW INDIVIDUALISM:
Analyzing OLPER’S’S ads from its launch till now, it has shown a pure family environment in
its ads that members of family are sitting and consuming OLPER’S at Aftaar time and women
are using OLPER’S MILK in different dishes like KHEER, etc, to be consumed in a family
environment which shows low individualism (High Collectivism) Its ads show the cultural and
religious aspects of Pakistan too. But the ads like OMUNG/Olper’s LASSI, shows the high
individualism and ad is opposite of cultural aspects in which the actor is dancing in a club and
promoting the traditional drink as a fun and love drink.
MASCULINITY/FEMININITY:
As OLPER’S target market are mostly the families, its most of the ads show a feminist character
(caring, believes on quality of life) as Pakistan is indifferent on masculinity/feminity dimension.
In “OLPER’S MILK, MERA INTIKHAB TVC”, a husband is performing all households’ works
because his wife is not feeling well and wife consumes Olper’s as it is her choice and because
OLPER’S 100% preservative free as claimed in ad so this would be good for health.
HIGH/LOW POWER DISTANCE:
As OLPER’S mostly target upper and lower middle class but one of its brands i.e. OLWELL,
they targeted the elite class reflecting that inequality exists in the country as PAKISTAN is more
towards high POWER DISTANCE. They showed that elite class having totally different
lifestyles and are more conscious towards health issues as OLWELL is low fat, high calcium
milk and reduces the weight too. But due to showing this type of life style and targeting only
elite class, OLWELL is big failure.
LONG TERM ORIENTATION:
It seems that EFL is not imagining long term effect of Omore ads on children. For example,
Owsum is wrongly spelled so what the children will learn. Another example is of omore ice-
cream school ad which is showing that children are not listening/obeying their teacher and they
are eating in the class. These things will teach bad ethics to children and it creates long-term
impact on them and due to it, it also impacts on nation’s future too.

10. BRAND ANALYSIS
A brand is intangible asset that communicates value about any firm, its people, products and
services. EFL brands are considered to be the high quality brands and it has approximately
following 12 brands:
 OLPER’S
MILK,
 OMUNG
DOBALA
 LITE (LOW
FAT),MILK
 OLPER’S
CREAM
 DESI GHEE
(TARRKA),
 Y-FROOTER
(FRUIT
FLAV)
 OLFRUTE(
BEFORE)
 DAIRY
OMUNG
 OMANG (now
OLPER’s)
LASSI
 TARANG
(TEA
WHITENER)
 OMORE ICE-
CREAM
 OLWELL
(BEFORE)
ISSUES WITH SOME BRANDS
A brand incorporates the attributes, images, emotions, benefits recognition, and experiences
(Keller, 2003), however for EFL, things are somehow different as:
 As EFL’s most of the Brand’s names are starting with the word ‘O’
I-e: OLPER’S –OMUNG-OMORE, etc
 Its brand’s names are mostly not giving relevant meaning and sometimes misspelled.
I-e: OLPER’S (meaning): This is usually used as the plural and it is an abbreviation of "old
person(s)”. Therefore, the OLPER’s, the brand name shows that it only targets old age people,
which is not correct but it targets all age groups as they are showing in their advertisements.
 As the ingredients which are used in EFL’s some of its products are not mentioned on
their packs such as OLPER’S MILK, which are very necessary for all who buy their
products, has the right to know about them .
 As the DAIRY OMUNG’S tagline is “saf aur sehat baksh, fikar k bagher” (pure and
healthy, without being worried), “sehat bhi bachat bhi” (health and saving together) etc in

11. the print and TV media, while avoiding the word ‘milk’. The DAIRY OMUNG‘s tetra
pack mentions, it is actually UHT Dairy Liquid.
As the other tetra pack milk doesn’t mentions its ingredients list on its pack but surprisingly
DAIRY OMUNG does, as it contains:
INGREDIENT LIST OF 'DAIRY OMUNG’:
Now this is suspicious, the product is still defined as the ‘Dairy Liquid ‘not just packaged milk’
and it comes with ingredient list too.
 OMUNG LASSI: It has launched in a tetra pack with u-straw but when the word LASSI
comes, people are in the imagination of mug-sized class and cream (balai) and lassi is
most preferred to drink in a traditional way across the Sub-continent especially in
summers.

12. ISSUES IN 4P’S OF MARKETING MIX
PRODUCT:
 OLFRUT’S JUICE taste and offers six different flavors but fails to differentiate on the basis of
taste from its competitors such Nestle, Sheezan etc
 Offering a cultural desi drink in tetra pack packaging
 Launched OLPER’S LASSI mango and strawberry flavors, its taste is change from traditional
LASSI
 Confusion about the term “Dairy liquid” with DAIRY OMUNG
 Color of DAIRY OMUNG is not white.
PLACE:
 OLFRUTE, OMORE, OLPER’S LITE, TARKA and OLPER’S CREAM are not easily
available even in the market of the metropolitan cities
 Retailers as well as Shop Keepers are not willing to keep new brands on shelves because of
their lesser awareness among the common people
PRICE:
 OLFRUTE is a high priced and low quality brand in comparison with its competitors (e.g.
FRUTA VITALS)
 EFL has doubled the price of Lassi after re-launching it.
 Omore ice cream is high priced in comparison of Walls.
PROMOTION:
 Promoted TARANG as milk for a year
 OMORE ice-cream ad lacks in conveying product information
 Omore Ad may teach bad ethics to children.
 Targeted only the younger ones in OMUNG’S LASSI’S ad
 OMUNG LASSI advertised as fun & love drink and dancing in it while dance & LASSI have
no connection
 OLFRUTE’S ad couldn’t make proper connection with OLFRUTE JUICE
 No frequent advertisements of other brands except OLPER’S milk and TARANG
 Little presence on social media
 No TVC for Olper’s Lite low fat.
 Olfrute tagline “Idher Udhar, Idhar Udhar” showing a sense of urgency rather than a sense of
integration with brand
 Spending huge amount on tarang ads by showing dancing as dancing does not sell your
product.

13. It is found that most of the problems of EFL are with the products or promotional activities while
its distribution channel is strong and in FMCG industry there is less price competition. In product
there are complains for the tastes of products like: Omung Dobala, (Omung)Olper’s Lassi,
Olfrute juice, etc. And when it comes to promotional activities except Olper’s promotion, every
other product has got issues with their ads.

14. Recommendations
 Engro foods has to do research to know that why consumer is not preferring its products
except Olper’s and Tarang.
 Engro should target the young boys & girls for its Olper’s Lite low fat milk and should
promote it through TVC too. The best platform for TVCs is the morning shows. As
Olper’s Lite target market is adult, it can also use BTL technique like placing billboards,
arranging health awareness sessions at places like colleges/universities, at busy places
like shopping malls where the girls can be targeted easily.
 Engro should perform a thorough research before making ads for its products as the
promotion of Olwell & (Omung) Olper’s lassi had a negative effect and after all, the both
product failed.
 Engro should focus on all of brands rather than focusing only on Olper’s & Tarang and
now on Omore.
 Engro can open its own ice cream parlor under Omore brand.
 Omore ads should be responsible. They should show good character of children in their
ads.
 Engro needs to do R&D on its Olfrute juice processing and should change its taste as
there are complaints about taste.
 As Omore is being liked by people, it should reduce prices to capture the market share
and to give tough time to its competitors.
 Olfrute ads should be connected with its product nature.
 Engro should make sure the availability of their products at shops like Olper’s cream,
Olfrute juice etc.
 Engro should give incentives to retailers for displaying the Engro foods’ products in front
shelves of shops.
 Engro should clarify to consumers that Dairy Omung is not a milk that is substitute of
milk and as Dairy Omung targets the lower income class, it should be made available at
every retail shop.
 Engro should avoid spending huge money on Tarang dancing ads. Dancing does not sell
your product.
 Engro should target all age groups for Olper’s Lassi as lassi is for everyone and should
promote it as refreshing drink by making more attractive TVCs having a cultural touch.
 Engro should also reduce the price of Olper’s Lassi to boost sales and should make sure
the availability of it.
 Engro should use the correct spelling for their products name (Olfrute is actually “All
Fruit” and Owsum is actually “Awesome”) or should choose proper names.
 Packaging of some products like Olfrute, Olper’s Lassi should be made more attractive
with different color combinations.

15. Conclusion
After thoroughly analyzing the EFL, we come to conclude that EFL is a successful organization.
EFL has more potential to grow and it can achieve more, if it gives concentration to all the
brands rather than focusing on limited brands. We found that major issues with EFL lies within
the promotional strategies as the products are quite good except some and it has strong collection
and distribution channels. With respect to price, we found that in FMCG there is less competition
on the basis of price but the Omore is high-priced brand of EFL. So, EFL should expand the
circle of its focus to all brands and should do comprehensive research before taking any strategic
step.

16. APPENDIX
References:
Ali Shah (2013). ‘Human Resource Management of Engro Foods’ Slideshare, July 17, 2013
Afia Jamal (2010). Media watchdog ‘What Olfrute did wrong’ the express tribune blog, July 25,
2010
Faseeh Mangi (2014). ‘Dung-Free Milk Desire Drives Engro Foods Demand in Pakistan’.
Bloomberg, June 26, 2014
Hiba Moeen (2010). ‘Criticism of Advertising’ PAKMEDIABLOG, March 21, 2010
Hina Safdar (2012). ‘The Curious case of dairy Omung by Engro Foods’ Chowrangi.pk, June 1,
2012
Hanan Rasool (2013). ‘Engro Olfrute Re-Launch Marketing Strategy and Communication Plan’
slideshare, November 06, 2013
Mahjabeen Mankani (2012). ‘Advertising analysis-Omore’ Dawn, July 14, 2012
Muhammad Rizwan. ‘Strategic Management & Business Policy’ Academia.edu
Muhammad Ismail Rajput (2014). ‘Engro Foods Limited Marketing Project’ slideshare July 04,
2014
Naseeb (2010). ‘Marketing of Olper’s’ Scribd.com, January 31, 2010
The Buzz-Media Speak ‘Lite Blue Olper’s’ Aurora
TVC (2014). ‘Olpers Milk Mera Intihkab’ Tune.pk

17. Turnitin Plagiarism Report

18. Word Count
Total words are 2415 after excluding Table of Contents, Acknowledgement, Executive
Summary, Table and References