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our penchant for innovation

Innovation is an idea that is translated into a good or service that creates value for the customers.
At Engro Foods, innovation has always been considered the key to success. We believe that
innovation along with teamwork, motivation and vision brings great success.

1. . Final Project On Principals of Marketing On the topic Marketing Analysis of ENGRO


FoodsPresented To: Sir UMER SAUDPresented By: Mutahir Bilal MCE 12147 Salman
Anjum MCE 12155 Mubeen Abdur Rehman MCE 12151 Zuhaib Ahman MCE 12152 Class
M.Com Semester 2st Evening Superior University Lahore. 1
2. 2. Table of contentsAcknowledgements 4Introduction
4History 5Vision
5Mission 6Core Values
6Diversified Portfolio of Engro Pakistan . .
6Our Brands 8Business Segments Being
Targeted . 11Sales Setup of the Company
.......... 12Departments 12Production
Process 14Sales 16Market
Analysis 16 Segmentation
16 Silent Feature of SBUs 19 SWOT Analysis
21 Market Share 24 Profit of
Various SBUs 24 Competitive profile
matrix.. 25 Strategy adopted for Market growth.. 25
2
3. 3. BCG Matrix 26Interviews Questions
29Conclusion 31References
31 3
4. 4. Acknowledgements: Firstly we would thank Allah for giving us the opportunity and the
resources to be ableto do something productive with our lives. Without His blessings we
would not have been ableto come as far as we have. Then our sincere thanks to Mr. Haroon
Hafeez for helping us throughout this report. Hisguidelines have been very useful for us in
preparing this report. He helped us find new ways ofbeing innovative and creative. This
report would not have been possible without hiscooperation and continuous direction. We
would also like to thank Mr. Farrukh, Regional Sales Officer at ENGRO Foods whospare
sometime for us so that we could conduct the interviews with him. It is true that thisresponse
in the interview have been very helpful.Last but not the least we would like to thank our
families for their incessant support andapproval.Engro Food Limited: Engro Foods Limited
was officially launched as a fully owned subsidiary of Engro in 2004.Using dairy as a

stepping stone to enter into the food business, the Company has establishedstate-of-the-art
processing units in Sukkur and Sahiwal, along with an ice cream productionfacility in
Sahiwal. Top quality brands like Olpers, Olwell, Tarang, Omore and Owsum have
beensuccessfully launched under the helm of Companys dairy products. To support these
brandsand their highest standards of quality, Engro Foods has invested heavily in milk
processing andmilk collection infrastructure. Engro Foods now plans to venture beyond the
dairy sector. In thispursuit, grain and fruit markets have been analyzed in great detail. Engro
has launched its newbrand in fruit juices called as Olfrute. Engro Foods vision is Elevating
Consumer Delight 4
5. 5. Worldwide and the Company aims to generate a significant portion of its revenuefrom
foreign operations.EngroFoodsHistory: Engro Foods (Pvt.) Limited (EFL) has
beenestablished in 2005 as part of a diversification process atthe Engro Group. The plant
located at Sukkur on 23 acreland, has the raw milk reception capability of 300,000liters per
day and UHT milk capacity of 200,000liters perday. The plant has been established at a cost
of Rs. 1billion which provides direct employment to 750people.Engro Foods has entered the
Food businessthrough milk processing and sale with the companys vision to pursue growth
opportunitiesbased on country fundamentals and own strength. It also positions the company
to leverage itscorporate social responsibility initiatives and work closely with rural
communities to promoteintegrated farming and livestock development. This effort is expected
to play pivotal role inpoverty alleviation and improving livelihoods of the poor in the milk
collection areas. Engro Foods will work with the Pakistan Poverty Alleviation Fund and its
three partnerorganizations to help implement sustainable business models that increase
farmersprofitability and develop a positive social and business climate for growth and
expansion oflivestock and other forms of value added agriculture.
6. Vision: "Our vision is to become a fast expandingmega foods company. To achieve our
vision, thecompany will initially focus on dairy by investing asubstantial amount in plant, milk
collectioncapability and marketing. We are making concreteefforts to expand in and beyond
Pakistan; throughstrategic international alliances, to eventuallybecome global." 5
7. 6. MISSION STATEMENT: (Our mission is twofold) To help farmers maximize their
farmproduce by providing quality plant nutrients and technical services uponwhich they can
depend. To create wealth by building new businessesbased on company and country
strengths in Petrochemicals, InformationTechnology, Infrastructure and other Agricultural
sectors. In pursuing themission we shall at all time be guided in our conduct and decision
makingby our Core Values.Core Values: o Leadership o Innovation o Diversity and
International focus o Quality and continuous Improvement o Candid and open
communications o Individual growth and development o Enthusiastic pursuit of profit o Ethics
and integrity o Safety, Health and EnvironmentDiversified Portfolio of Engro Pakistan: Our
diversified businesses represent our immense growth potential to generateopportunities for
creating growth potential to generate opportunities for creating andsustaining value for our
stakeholders. Engro Fertilizers Limited: Agriculture accounts for 25%of GDPand45% of
employment in Pakistan Second largest Urea producer of Pakistan. Capacity975 KT/A)
-Market share20% Second highest phosphates sales (~400KT/A)- MarketShare23% ECPLs
Margins areby far the best in the industry. Zarkhez( NPK) Market leader -Capacity160 KT/A

-MarketShare95% Urea shortage ex pected to grow to1.2million tons/annumby2010. Worlds


largest single-train Urea plant of 1.3million tons being setup at a cost of US$ 950 million. On
commencement of operations in mid2010, cash fixed costs of the new plant will be a third of
the existing plant; scale& brown field synergies Gas consumption at the new 6
8. 7. plant willbe15%less than the existing plant. Engros Daharki complex willbecome the
worlds fifth largest Urea production site; 2.28million tons, 3plants.Engro Foods
Limited:Established in2005, a 100%owned subsidiary Firstinvestment of dairy plant
Processed milk market isgrowing at approx. 20% per annum Olpers achieved peakmarket
shares of 12.3%within6months of launch Other products launched-OlpersCream, Olwell High
Calcium Low Fat Milk (Premium Brand) Plans to expand productportfolio Milk processing
capacity to increaseby200%to200million liters annually Willbecome the only company in
Pakistan covering the entire milk catchments area Alreadyhas the second largest chilled milk
collection system in the country Distribution networkto double from 58 towns to119 towns by
the end of 2007 JV with global food major inadvanced stage of negotiation.Engro Polymer &
Chemicals Limited:Established in 1999 80-20 JV with Mitsubishi Corp. Pakistans onlyPVC
manufacturing plant; facing buoyant domestic demand since2006. Successfully placed 22%
of sales in diverse export marketsfrom Australia to East Africa in prior years(2004 -2005)
Expansionand back integration underway-imported ethylene + new causticsoda plant
;EDC/VCM/PVC.Engro Energy Limited:Established in2006-100% owned subsidiary Pakistan
isfacing growing energy deficit Energy consumption hasbeen growing at 7% per annum
Setting up 220 MW gasbased power plant at a cost of $220 million withcommercial operation
in 2009 Short-listed along with 3 other companies forprivatization of Jamshoro Power
Company.Engro Innovative Automation Limited:Acquired majority stake(51%)in a knowledge
basedcompany Innovative Engineering & Automation Ltd in2003 Market Leader in domestic
Industrial AutomationHoneywell distributor in Pakistan Expandinginternationally to synergize,
and benefit from lower costs at home and higher demanda broad Now operating in Dubai,
UAE which contributes 25% of revenue and half of 7
9. 8. the profit Companys first IP product iboiler launched internationally in 2006 Acquired an
automation company in the USin Dec. 2006; mandated to develop outsourcing opportunities.
Engro Vopak Terminal Limited: A50-50 JV with Royal Vopak of Holland; established 1997
Royal Vopak is the worlds largest independent tank terminal operator Engro Vopak handles
70% of liquid chemical imports in Pakistan. Setting up our countrys first Cryogenic facility for
ethylene imports Well positioned for setting up proposed LNG terminal under active
consideration of the government; Cost US $350 -400 million. Engro Asahi Polymer
&Chemicals. Limited: Established in 1999. 80-20 JV with Mitsubishi Corp. Pakistans only
PVC manufacturing plant; facing buoyant domestic demand since 2006 Successfully
placed22%of sales in diverse export markets from Australia to East Africa in prior years(2004
-2005) Expansion and back integration underway-imported ethylene-new caustic soda plant;
EDC/VCM/PVCOUR BRNADS: Sheer indulgence in every sip comes only with the rich
creamy thickness of Olpers. Give your day a fresh start with Olpers! Embrace the lighter side
of milk and feel years lighter with our low-fat milk Olpers lite, for a guilt-free existence! 8
10. 9. Savor the flavor of tradition and enjoy the rich, aromatic flavors of badam,zafran and rose
in every sip of milk with Olpers flavored milk!Enhance the culinary experience with Olpers

11.

12.

13.

14.

Cream - a rich celebration oflife at its creamy best Experience sheer bliss in a tea-cup with
Tarang, our special tea creamer for that perfect cup of tea. Get nutrition and the best value
for money with omung dobala. 9
10. Enjoy our heavenly nectars extracted from pure fruits to revitalize you witha muchneeded boost, anytime anywhere. Only with Olfrute. Rise up to a better life with our all
purpose dairy brand Omung available atthe ultimate price and in the best quality A dash of
Tarrka in your favorite cuisine is all it takes to bring out the flavor of your food and leave you
craving for more. With its rich, creamy taste, high nutrition content and wide-range of chunky
flavors, get more from your ice-cream with Omore! Enjoy home-made Lassi in the
convenience of a Tetra Pak. Refresh your day with our two delicious flavors. 10
11. Enjoy home-made Lassi in the convenience of a Tetra Pak. Refresh your day with our two
delicious flavors. BUSINESS SEGMENTS BEING TARGETED: Business Segments. Export
Trade ServicesTrade: He has also been involved in international trade for the last six years,
focused mainly ondriving profits through trading positions. 11
12. Food service: Engro Foods Limited is also engaged in the food services by supplying to
PIA,RAILWAYS& Others (Food service Trade sector 80 % ALLTHE MAJOR
RESTURANTRS. Company is already supplying to the hotels; PSL was incontract with
Nestle for the year but Nestle was unable to keep up the supply in this leanperiod E.F.L
supplied the stock to some of these hotels. E.F.L has entered into contract with PSLand it will
be supplying to a chain of hotels for the next year.Exports:Engro is already considering
exports to Afghanistan. & PeshawarDepartments: 1. Administration Efficient management of
all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration
department. From legal matters to general day-to-day operations of the office, the
Administration department ensures that all affairs run smoothly. 2. Finance and Accounts
The Finance and Accounting departments at Engro Foods are responsible for the total
financial management of the different businesses of the company. From the usual accounting
statements and sheets to risk and portfolio management, the team ensures that every rupee
coming into and out of the Companies pockets is properly documented and audited. 12
Rawalpindi Lahore Multan Karachi Exports) 20%SALES SETUP OF THE COMPANY:
The Company is operating 5 Regional Offices located in important cities of the Pakistanto
handle the domestic business. These regions are
13. 3. Human Resource The Human Resource department at Engro Foods (Pvt.) limited
spearheads thererecruitment process to ensure that the finest human resource is taken on
board at EngroFoods. Resumes of candidates are carefully filed and documented for current
or futurereference. The department, besides carrying out succession planning, maintains
andimplements HR policies pertaining to employment, retention and superannuation.
Assessingtraining needs of employees and ensuring adequate training is also carried out by
theprofessional HR team at Engro Foods.4. Marketing Consisting of leading marketing
professionals of the industry, who are graduates of topbusiness schools of Pakistan, the
Marketing Department ensures that from product needidentification to product development,
launch and post-launch, all strategic decisions aremade based on authentic information and
research. Identifying the target markets,effectively communicating to them and building the
image of the brands as well as theCompanies, is the job of the professionals running the

marketing at Engro Foods.5. Procurement As 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 our customers.Ensuring regular collection of fresh and pure milk right
from the farmer to the factory andascertaining the freshness of milk all across the milk
procurement process, is theresponsibility of Milk Procurement department, consisting of food
technologists working atthe collection centers and veterinary doctors providing service to the
farmers.6. Management Information System: The MIS department at Engro Foods ensures
that all automation is running error-free atall times. Regularly modifying and updating the
Companys accounting software is also theMIS teams responsibility.7. Production Modern
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 milk perday, making it
one of the largest in the country. Professionally qualified human resourceefficiently works
night and day to maintain highest hygiene standards. 13
15. 14. 8. Quality Assurance Quality Assurance is strictly followed in Engro Foods. Qualified food
technologists at this department ensure that highest quality parameters are adhered to
through all steps of production and that the products reach the consumers as per promise. 9.
Supply and Distribution This department ensures timely and effective distribution of the
products to different shops and stores spread all across Pakistan. From transportation
management to obtaining route permits and approvals, is done by this department. THE
PRODUCTION PROCESS Chlling and UHT Pasteurization Pacaging Storage
TreatmentChilling and Storage: The production process at Engro Foods consists of four
steps. Firstly, rawmilk is collected from milk collection centers by tankers and brought to
plants for processing.On arrival, the milk is tested for appearance, smell and temperature,
and a sample is taken foranalysis in laboratories. A series of tests are carried out relating to
the compositional andhygienic quality of the milk. Subject to the satisfactory completion of
these tests, the milk in thetanker is then unloaded into a silo. The milk processing factories
cool the raw milk at a 14
16. 15. temperature of 5C or less into cooling tanks prior to being passed through heattreatment
facilities. The chilling process helps to curb bacterial growth in milk.Pasteurization: Next
comes the pasteurization stage, which is the process of boiling the milk and thenimmediately
cooling it to a lower temperature. The milk is pasteurized at 85 C, which helps tokill 98% of
the germs present in the milk. Pasteurization serves as the separation point of rawmilk into
different products, which include Tarang, Olpers and Olwell. At this point the creamand fat
are removed from the milk and other special ingredients are added along with it to the10
Supply Chain Management at Engro Foods milk as per the requirements of each product.
Forexample, Tarang is a high-fat tea whitener and therefore it needs more cream content
anddifferent ingredients as compared to a product like Olwell, which is low fat and requires
lesscream. The milk after pasteurization is then standardized as prescribed by the Pakistan
PureFood Laws at 35% Fats and 8.9% SNF (solidnon fats).UHT Treatment:The pasteurized
milk is then passed through the UHT (Ultra Heat Treatment). This is the mostsophisticated
and advanced stage in milk processing. In this process the milk passes through140 degree
centigrade in the first 3 seconds and it is then immediately cooled to 20 degreecentigrade in
the next 5 seconds, which in turn kills all the bacteria. The UHT process can beachieved

either through indirect or direct heating systems. In the indirect method the milk isheated by
steam passing through stainless steel pipes outside milk tanks. In the direct methodeither the
steam is directly injected into the milk or the milk is forced through a fine nozzle intoa tank
filled with steam. Engro Foods makes use of the direct system for the UHT
process.Packaging:Following the heat treatment, the milk is cooled in a sterile vacuum
chamber. After the heattreatment the milk is cooled and packed in Tetra Pak cartons as soon
as possible to preventcontamination. The packaging process is also carefully monitored. The
packages undergostringent controls to check that they are sterilized. The milk is then filled
into the cartons underaseptic conditions. The cartons are filled automatically and
continuously under completelysterile conditions and then heat-sealed. 15
17. 16. Secondary SalesPrimary Sales refers to the sales of the batches of products by the
manufacturer to thedistributors. Secondary Sales refers to the sales by the distributors to the
retailers from wherethe goods are eventually sold to the ultimate consumer. So Engro Foods
is following thetraditional channel of distribution that involves some intermediaries between
the transfersfrom producer to the consumer. Manufacturer Final Distributors Retailers (Engro
Foods) Consumer Market Analysis:Segmentation: It is difficult for any one company to
engage in massproduction, mass distribution and mass promotion for its product.
Thecomplexities arise from the proliferation of advertising and distributionchannels and the
high costs associated with reaching a mass audience.Therefore, companies segment the
market so that they can target thegroup of customers who share similar needs and wants.
The milksector shows a market that has homogeneous preferences that is theconsumers
have similar preferences. They want milk to be white,carefully processed, and good for health
and bones. Keeping thesethings in mind Engro foods market has been segmented.
Themarketers at Engro Foods have had a number of options available tothem when
segmenting the market for their products. 16 Primary Sales SALES:The sales of Engro
foods products are divided into:
18. 17. Demographic segmentation Engro products are not bounded to any particular age,
gender or lifecycle stage. Thebrand is meant for all the users in higher upper or middle class
families. Even though the brandcalls for a small percentage of an individuals income but
lower class wouldnt want to buy thebrand maybe because they are price sensitive or
because they believe lose milk is better thanprocessed milk and has all the nutrients that the
processed milk lacks. However all thecompanies in the milk sector are trying to change the
image of processed milk as non-nutritionist milk? Therefore it can be said that Olpers has
been positioned as a brand for highincome earners. Due to the income factor involved it can
be said that Engro foods target aspecific social class who are health conscious and
concerned about their weight.Psychographic segmentation On the basis of psychographics,
factors such as personality traits, lifestyles and values,the marketers at Engro foods have
segmented the market more towards achievers who aregoal-oriented and focused on their
careers, and experiences those who are seeking variety inthe milk sector. For example the
ads for Olwell mostly show achievers who want to besuccessful, have high aims and are
already doing quite well in their concerned fields. TheEngros products have targeted
experiences because the company has given them a new set ofbrand and so many will make
their first purchase because they want to try something new.Olpers ads also target believers,

traditional conservative people with concrete beliefs. The adsfor Engros show the beliefs of
healthy life with processed milk and plays on the emotionalaspect more.Behavioral
segmentation Engros products have been segmented on the basis of benefits that
consumers seek inthe milk. In this case, people look for a brand that can be used for all
purposes from drinking totea whiteners as well to feed the animals. The ads also show that
consumers should increasetheir milk consumption for example with every tea they should
use Olpers, every morning theyshould drink Olpers and everyday they should feed their pets
with Olpers milk. There may besome hard core loyal in the milk sector. Loyalty maybe
towards such established brands asNestle and Haleeb. There might even be switchers and
shifting loyal in the milk sectors that areeither price sensitive or want variety. As a result, the
marketers need to find ways to make thehard core loyal attracted to the Olpers brand and
shifting loyal and switchers to convert intohard core loyal as well.Positioning the brand
Positioning involves designing the product and image that will occupy a distinctive placein the
minds of the target market. As can be seen, nestle milk pak and Haleeb have the largest 17
19. 18. profit margins and market share in the milk industry. Thus the marketers at Olpershave
decided to create its own unique image and then strengthen the position inthe customers
minds. They have done this by taking a number of following steps:1. Packaging of Olpers
milk and Olwell in red color and Olpers cream packed in purple colorare quite different and
distinctive from the typical green and blue packing used by othercompetitors.2. The brand
has been positioned as an all purpose milk that is meant for everyone, especiallyfor those
who live life to the fullest, hence its tag line, jo dil khol kay jeetay hain unheen kayliyay hai
Olpers.Engro foods always tries to create customer intimacy that is it focuses on satisfying
thecustomers unmet needs. Processed milk is seen as less lacking all the nutritions that is
part ofmilk due to passing through so many processes. But Engro foods positions itself as
milk thathas not lost its nutrients. The unique selling proposition for Engro foods is Subah
BakhairZindagi , but recently the company changed the USP to: Jo dil khol kay jeetay hain
unheen kayliyay hai Olpers. Both the tag lines have a very positive impact on Olpers image
because of theemotions involved in both the lines. The marketers have used different
positioning for Olpersproducts: o They have used the attribute positioning for Olpers milk.
The main theme of the product is that it is meant for all purposes without any user imagery.
Olpers ads also show attributes of milk such as good for health. o They used the benefit
positioning for Olwell. The product is positioned as delivering the benefit of helping to reduce
weight and for healthy bones. o Olpers cream is positioned as good for a specific use or
application. In this case the cream can be used to make cake icings and desserts look
great.It can be said that all the different stages have been performed by the marketers with
extremecare and research. 18
20. 19. Promotion Product Product Variety: A wide range of dairy ice creams and frozen
desserts Quality: Premium ice cream rich in calcium which is fresh every time Design:
Includes ice pop, choc bar, dairy ice cream and pop sickle. Features: Made from fresh milk
and cream and high in nutrition Product Name: Frooze ice pops, Olper Milk, Olwell, Omng
Lussi, Dairy Omng, Olfrute, Nutty/ Caramel Cones, Strawberry/Mango/Vanilla Affair, Kulfi,
Lick a Flavor, Frooze Cups. Packaging: High quality and eye catching packaging. Packaging
color ranges from red, blue, yellow, orange and green. Packaging is colorful in order to

attract children. Sizes: Sizes include 1ltr and half liter for dairy Milk. Choc bars Place Price
Product Salient Features USPs of SBUMarketing mix includes Product Price Place
Promotion & soft serve ice cream are of different sizes. 19
21. 20. Service: Satisfying the dessert needs of the population in the best possible manner and
delivering quality every time to the consumer Warranty: None what so ever. Returns: Only in
the case when product is expired. PriceList Price: Price varies for different ice creams.
Depending upon Cups Rs 20 Soft serve ice cream Rs 10-50 1Ltr ice cream Tub Rs 150 2ltr
ice cream Tub Rs 275 Cones Rs 30 Ice Pop: Rs 10 Olper per Ltr Rs105 Trang Tea
Whitener(200m.l) R.s18 Olwell Cream 200 m.l R.s80 The price of its competitor (Walls) is
more or less the same and price of liter ice creams is less than Walls which is a 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 shop keepers. They are new in the market
and do not have the same relationship with retailers as Walls. Place: Channels: Sells directly
to the end user through retailers and shopkeepers. This is the trend in Pakistan followed by
many FMCGs. Coverage: Engro Products for the time being is only available in limited areas
on Punjab and available throughout Pakistan. The company started off its operation in
Punjab because it has the largest province population wise. Transport: Engro products are
transported to retailers and shop keepers through private transportation firms e.g. Abu
Dawood Logistics and also through a few trucks owned by the company. This is done in
order to remove transportation and vehicle costs Locations: Available at large/medium sized
and small bakeries, grocery stores and pharmacies in Pakitan - 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 too. 20
22. 21. Promotion:Advertising: Vehicle Advertising, Outdoor billboards, Point of Sale Displays
andAds on televisions. Advertisements are mostly colorful reminiscent to their ice
creampackaging. When Engro foods was initially launched they adopted a rather unique
wayof advertising. Flyers were thrown in different housing communities using
airplanes.Message: Linked Engro foods with joy and happiness so their tagline/sloganis Art
of Happiness. Linked with consumers and got reviews of different products usingvarious
mediums social communities e.g. Facebook and Orkut linked their ice creamwith other brand
names like Olpers and Olwell. This promoted their other brands as wellwhich are also
relatively new in the market. SWOT Analysis Strenghts Weaknesses Opportunities Threats
21
23. 22. Olwell TVC Olwell ad which is based on Western life style, ENGRO foods brand
management showed a man who put off his clothes Third-Generation Plant EFL only, has
the third-generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that
uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and
hygiene. Moreover, it is also setting up another milk processing plant in Central Punjab
(Sahiwal) with an investment of Rs. 2 billion (US $ 33million).Weaknesses Its taste, quality
proposition and world-class quality proposition system. Positive response from customers
in first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction upon
EFLs products. Personal relations with farmers ENGRO has been interacting with the
farmers for fertilizers and has gained quite a good reputation over the years. It has led to a

strong bond and long term relationship with the farmers who are willing to supply milk to the
company. This is an added advantage and strength for the company because it will never be
short of milk production. The farmers also wont have to look elsewhere to sell their milk.
Strengths & Low Quality Milk EFL is not having its own dairy farms; it largely collects
loose milk from farmers Owning Red Color The Company has not owned the color red like
Nestle has a green Milkpak; Haleeb has a blue carton etc. remain just in his
undergarments, or half nude lady in a cat walk or men admiring the figures of a lady in mix
gender health club. & Milk collection Packaging EFL is dependent upon Tetra Pak for the
packaging of its entire dairy products. Tetra Pakis the only option available to Olpers for
packaging because it is having monopoly in the packaging sector in Pakistan. galas
through its 40 milk collection centers. & Narrow brand portfolio It has been more than a year
now, when EFL launched its first dairy product, Olpers Milk on March20, 2006. But EFLs
brand portfolio still consists of just 3 products i.e. Olpers Milk, Olwell Milk and Olpers
Cream. Whereas its competitors like Nestle and Haleeb Foods have a much diversified line
of dairy products. 22distribution costs EFLs34 out of 40 milk-collection centers are located
in Punjab, whereas its only milk processing facility is situated near Sukkhur (Sindh).
24. 23. Increased consumption of PLM Competition may create opportunities for the company
because each competitor in the milk industry wants to increase pene Increased funding by
Government Government has decided to increase farmers funding. This is an opportunity for
ENGRO foods because previously due to weather conditions and other reasons there was
lots of wastage of milk but now that can be reduced as farmers will be better able to store
milk for longer time periods. Opportunities Perceptions and Price Differentials Consumers
perceptions and price differentials can cause a threat for the company. It is important that
Olpers comes up to the expectations of the customers and fulfills its conformance quality
that is the company meets its promised specifications. Consumers preferences change with
time and prices might create certain barriers inters of the profit margins for Olpers. 23
Competition may pose a threat because the company will have to maintain its leadership in
an expanding market so that it doesnt lose its market share to its competitors. For Olpers it
might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle
and Haleeb. Third largest producer of milk Pakistan is the Third largest producer of milk in
the world with a total production of 32billion liter of milk a year, whose value is more than that
of the combined value of wheat and cotton, from a total herd size of 50 million milk animals
(buffaloes and cows). Livestock accounts for 46.8 percent of agricultural value added and
about 10.8percent of the GDP.Threats Awareness Growing dissatisfaction with loose milk
and increasing awareness about health and hygiene issues have led to increased processed
milk consumption. tration of processed liquid milk and so they will create awareness for
consumers through different advertising media.
25. 24. Market share of Engro Foods: Sales Nestle Engro Halleb Uniliver Nestle 35% Engro 27%
Halleb 17% Uniliver 21% Profit of varies SBUs of ENGRO FoodsDivision Revenues Profit
Percent Market Growth Rate (million Pkr) (million Pkr) Value PersengeOlpers 4500 2000 60
+4Olfrute 2550 1500 25 +2Tarang 3200 1305 35 +8Omore 759 200 12 +5 24

26. 25. Dairy Omang 654 178 10 +1 COMPETITIVE PROFILE MATRIX (CPM):Critical Success
Factors Weight Rating Score Rating Score Rating ScoreResearch & Development 0.08 3
0.24 3 0.24 4 0.322Financial Position 0.09 3 0.27 3 0.27 3 0.274MarketShare 0.07 2 0.14 4
0.28 3 0.215ProductQuality 0.08 3 0.24 3 0.24 3 0.246PriceCompetitiveness 0.11 3 0.33 3
0.24 2 0.227Management 0.10 3 0.30 4 0.40 3 0.308Glo balEx pansion 0.08 3 0.24 4 0.32 3
0.249Customer service 0.06 3 0.18 3 0.18 2 0.1210Sales & Distribution Network 0.09 3 0.27
4 0.36 3 0.2711ProductionCapacity 0.07 2 0.14 3 0.21 4 0.2812Alliances 0.08 3 0.24 4 0.32
3 0.24Total 1.0 2.76 3.51 2.98Strategy adopted for Market growthEngro Foods are using
different strategies at the same time to gain market share and to createsound image of the
products and company in the minds of the customers.The company adopting flowing
strategies. Market Penetration (Olper and Omore) Product Development (Omang Lassi and
Olfrute) Market Development ( Targeting almost all regions in Pakistan) 25
27. 26. Boston Consultant Matrix Model BCG model relates to marketing. The BCG model is a
well-known portfolio managementtool used in order to analyze and position the product by
keeping in view the market share aswell as the market growth rate of the product. BCG
matrix is often used to prioritize whichproducts within company product mix get more funding
and attention. The BCG model is basedon classification of products (and implicitly also
company business units) into four categoriesbased on combinations of market growth and
market share relative to the largest competitor.In order to elaborate the BCG matrix, I have
chose Engro foods limited. Though Engro has anumber of other business in which it involve
but in this report I have focused only in onebusiness unit of Engro which is Engro foods
limited. Engro foods have launched six majorbrands since 2004, year of establishment of
Engro foods. In these six major brands five are dairyproducts. In year 2010, Engro has
launched olfrute which is a fresh juice product by thisparticular company. In this report, I have
categorized all the six major brands of Engro foods into four categories of BCG matrix. The
decision of this categorization has been made on the basisof two major things that are
market share and the growth in the market. 26
28. 27. Stars In the BCG matrix, I have placed two products in the star categories that are Omore
andTarang as the growth rate of these two products are quite high as you can see in the
table-1.Beside this the market share is also increasing. As both of the products are relatively
new inthe market as compared to its competitors and the market share is not so well but still
in thisshortage period this growth rate and the market share is incredible. There is a lot of
potential inboth of these products and company can increase its market share by massively
investing inthese two products. Investing Strategy must be used in order to constant the
growth, thecompany must constantly invest in order to grow the current level of market share.
Growth Rate +5% (Olper), +8% (Trang) Ice Cram Market Share Tea Whitener Market Share
Omore 38% Trang 51% Walls 45% Every Day 27% Yummy 17% Tea Max 22%Cash Cows
Olper is one of the well renowned brands by Engro foods and this has lead to a
drasticchange in the diary industry of Pakistan. Before olper, haleeb and milk pack had the
monopolyin the tetra pack diary industry but after the olper success a lot of other brands like
good milk,nurpur etc got enter into the market. Now the market of the olper has a relatively
high marketshare and the third largest milk producer in Pakistan. Olper milk and cream come
under thesame umbrella of brand nameolper. Harvesting Strategy should use and Engro

should milk itscow for the Omore and Tarang in order to increase their current market share.
Growth Rate +4 Milk Market Share Cream Market Share Opler 21% Olper Cream 28% Milk
Pak 45% Nestle Cream 52% Haleeb 34% Haleeb Cream 20% 27
29. 28. Question Marks At the end of year 2010, Engro food has launched its first juice brand
name Olfrute.Olfrute has relatively low market share but the growth potential is quite high.
Olfrute is facing atough competitor with a strong brand name of Nestle. The initial promotion
and the salesfigures depict that it can be a successful product but still the results of this
brand has yet tocome. In this particular period Engro food has also launched flavored milk
with brand nameowsum. Though the experiences of haleeb in the case of candia was bitter,
now just see whatEngro will do in order to make this brand a success. Growth Rate +2
Juices Market Share Nestle 49% Olfrute 13% Country 25% Halleb 13%Dog Engro has
lauched a brand with the name Olwell with high calcium and low fat. This hasget a great
failure and the market share of Olwell as compared to nesvita is quite low besidethis its sales
are started decreasing as compared to the previous year figures. Divesting Strategycan be
used as from the past two years the market share has been started losing and also thethere
is slow market growth for this product. Growth Rate +1 Milk Market Share Dairy Omang 10%
Milk Pak 45% Dairy Queen 38% Halla 7% 28
30. 29. MAJOR COMPETITORS: Engro Foods Limited is fully aware of its competitors. The
company had to consider theareas including (product design, segmentation, target market,
advertising, time to launch a newproduct, time for necessary changes & constant over view).
The major competitors in case ofoffering the UHT milk are o Nestle o HFL o Millac o Halla o
Prime o Nurpur o Nirala o Dairy Crest Other than the brand mentioned above Olpers also
faces an indirect competition fromthelocal milkman the GAWALA. INTERVIEW QUESTIONS
DUEING OUR VISIT TO MANAGEMNT OF ENGRO FOODS.Question No. 1 In last 2 years
how many products your organization has launched?Answer: Lasttwo years alfruit, owsum,
omore, tarang and some other productsare lunched.Question No.2 What are the number of
products you launched since your entrance inmarket?Answer: Olpers (cream and milk )
tarang (liquid, cream and powder)owsum alfruit,tarqa aslighee, omore,alwell (for
diet),different kinds of clorious product(milk) are majorproducts launched by us.Question No.
3 What is your core competitive advantage over your competitor?Answer: Aggressive style of
business launching more products in short time.Question No. 4 What is the % discount rates
you give to your supplier, retailer andwholesaler? 29
31. 30. Answer: The discount rate for retailer and wholesaler is according tomarket. And if target
achieved extra benefit will be given to them.Question No. 5 What is the core strategy behind
the advertising of your products?Answer: To target the audience e.g Owsum for children,
Olpers for all purpose,Tarang for Sweetlovers like Punjabis.Question No. 6 How vast are
your distribution channels in Pakistan?Answer: Over 500 + distribution channels covering all
over Pakistan.Question No. 7 Does you have your own transportation to take product to
outlets oryou outsourced the transportation system?Answer: Not exactly but we are using
outsourced transportation for to carry ourproducts.Question No. 8 What are your different
marketing strategies for the promotion ofproduct? o Targeting audience o Nominal price o
Good discount to distributor when they achieve the targetQuestion No. 9 How you make
profitable relationship with customer?Answer: We visit city school and Beconhouse for

profitable relationship programsof Olpers and Tarang house full programs are organized all
over Pakistan to attract the housewife to use our productQuestion No. 10 What are your
target markets?Answer: Pakistan, Afghanistan and Oman (and for all ages) Teenagers,
childrenand old persons as well.Question No. 11 Are there any customer relation centres for
complaints?Answer: No customer complaint centre but we have taken feedback
throughdistributors. Retailers and local shopkeepers and then try to solve them and make
product asgood as possible. 30
32. 31. CONCLUSIONS:ENGRO FOODS LIMITED is the subsidiary of ENGRO group. Their
brands are one of the topbrands in Pakistan in the milk sector. Their products
OLPERSMILK ,OLPERS CREAM,AWSUMFRUIT MILK ,TARANG TEA and OMORE ICE
CREAM purchased heavily by customers. This is dueto marketing Strategies, Promotion,
price and quality of their products. Above mentioned arethe Marketing Strategies of their
products due to which there Revenues increases day by day.They provide the customers
what they want; their distribution channels are vast and theirprices are nominal. These are
Reasons for the success of their brand