TERM REPORT

PRINCIPLES OF MARKETING SEC: B

GROUP MEMBERS:

HAIMAT KUMAR (FA09-BB-0024)

MUHAMMAD ANIS (FA09-BB-0039)

MURTAZA ALI (SP10-BB-0052)

SYED MUHAMMAD HUSSAIN (FA09-BB-0079)

NASEER AHMED KHAN (FA09-BB-0050)

SHAHAIL SULTAN (FA09-BB-0069)

ORGANIZATIOM: ENGRO FOODS LIMITED

DATE: 15TH NOVEMBER 2010

SUBMITTED TO: SIR MUNEEB FAYYAZ

 AKNOWLEDGEMENT

First of all thanks to Allah. And then we are thankful to SIR MUNEEB FAYYAZ
for providing us opportunity to work on the 4P”s of product and different
marketing strategies which organization uses for the marketing of their products
and we are also thankful to him for giving us guidance throughout the project. We
have chosen ENGRO FOODS LIMITED for the purpose mentioned above. We
have got very valuable knowledge on the products OLPERS MILK, OLPERS
CREAM and OMORE ICE CREAM and on their marketing strategies, 4P’s and
how their product attract customers through quality, price, Advertising and
promotions. We are also very thankful to Mr. ALI RASHID KHAN (Assistant
Brand manager) for his cooperation.

REGARDS:

ALL GROUP MEMBERS

 ENGRO FOODS

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 established state-of-the-art processing units in Sukkur and Sahiwal,
along with an ice cream production facility in Sahiwal.

Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been
successfully launched under the helm of Company’s dairy products. To support
these brands and their highest standards of quality, Engro Foods has invested
heavily in milk processing and milk collection infrastructure.

After the success of our dairy products, to which our customers testify, Engro
Foods now plans to venture beyond the dairy sector. In this pursuit, grain and fruit
markets have been analyzed in great detail.

Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the

Company aims to generate a significant portion of its revenue from foreign
operations.

VISION

Our vision is to become a fast expanding mega foods company. To achieve our
vision, the company will initially focus on dairy by investing a substantial amount
in plant, milk
collection capability and marketing. We are making concrete efforts to expand in
and
beyond Pakistan; through strategic international alliances, to eventually become
global."
 OMORE

Engro Foods has recently expanded its brands portfolio by launching a premium
quality ice cream with the name of Omore. Omore started its sales from the city of
Lahore because of the culturally inheritor of celebrator of festival of colors i.e. The
Spring Festival. They have started off with 24 different packs and flavors.
 4Ps of Marketing of Omore:

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, 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, 2ltr, and half liter for dairy ice cream. Choc bars & soft serve ice cream are of
different sizes as well

- 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 ice cream is expired.

Price:

List Price: Price varies for different ice creams. Depending upon
- Cups = 20rs

- Cones= 30rs

- Ice Pop: 10rs

- Soft serve ice cream= Rs 10-50

- 1Ltr ice cream Tub= Rs 150

- 2ltr ice cream Tub = Rs 275

- 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 is 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: Omore ice cream for the time being is only available in limited areas on Punjab and not
available throughout Pakistan. The company started off its operation in Punjab because it has the largest
province population wise

- Transport: Ice creams 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
Punjab

- 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.

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 Omore ice cream was initially launched they adopted a rather unique way of advertising.
Flyers were thrown in different housing communities using airplanes.

- Message: Linked ice cream with joy and happiness so their tagline/slogan is ³Art of
Happiness´

- Linked with consumers and got reviews of different ice creams using various mediums social
communities 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.
 OLPERS

OLPERS MILK:
Launched on March 20, 2006, Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultra
heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. It is EFL’s premier brand, and the choice of
quality-conscious consumers who only go for the best. It is available in easy-to-open, 6-layered Tetra Pak
Brick Aseptic red packaging and comes with a 3 months shelf life.

OLPERS CREAM:
The premium cream processed hygienically from pure fresh milk, Olper’s Cream is luxuriously rich in its
thickness & nutritional value. It promises the richest & scrumptious assortment of tempting toppings,
delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc. It was
launched on September, 2006 and comes in 6-layered Tetra Pak Brick aseptic purple color packaging
with 6 months shelf life.
 Segmenting and targeting the market for Olper’s

It is difficult for any one company to engage in mass production, mass distribution and mass promotion
for its product. The complexities arise from the proliferation of advertising and distribution channels and
the high costs associated with reaching a mass audience. Therefore, companies segment the market so that
they can target the group of customers who share similar needs and wants.

The milk sector shows a market that has homogeneous preferences that is the consumers have similar
preferences. They want milk to be white, carefully processed, and good for health and bones. Keeping
these things in mind Olper’s market has been segmented. The marketers at Olper’s have had a number of
options available to them when segmenting the market for their products. So far company has introduced
three new products: Olper’s milk, Olwell diet milk and Olper’s cream.

Demographic segmentation:

Olper’s products are not bounded to any particular age, gender or lifecycle stage. The brand is meant for
all the users in higher upper or middle class families. Even though the brand calls for a small percentage
of an individual’s income but lower class wouldn’t want to buy the brand maybe because they are price
sensitive or because they believe lose milk is better than processed milk and has all the nutrients that the
processed milk lacks. However all the companies in the milk sector are trying to change the image of
processed milk as non-nutritionist milk. Therefore it can be said that Olper’s has been positioned as a
brand for high income earners. Due to the income factor involved it can be said that Olper’s milk target a
specific 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
Olper’s have segmented the market more towards achievers who are goal-oriented and focused on their
careers, and experiencers those who are seeking variety in the milk sector. For example the ads for Olwell
mostly show achievers who want to be successful, have high aims and are already doing quite well in
their
concerned fields. The Olper’s products have targeted experiencers because the company has given them a
new set of brand and so many will make their first purchase because they want to try something new.
Olper’s ads also target believers, traditional conservative people with concrete beliefs. The ads for
Olper’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more.

Behavioral segmentation:

Olper’s products have been segmented on the basis of benefits that consumers seek in the milk. In this
case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well to
feed the animals. The ads also show that consumers should increase their milk consumption for example
with every tea they should use Olper’s, every morning they should drink Olper’s and everyday they
should feed their pets with Olper’s milk. There may be some hard core loyal in the milk sector. Loyalty
maybe towards such established brands as Nestle and Haleeb. There might even be switchers and shifting
loyal in the milk sectors that are either price sensitive or want variety. As a result, the marketers need to
find ways to make the hard core loyal attracted to the Olper’s brand and shifting loyal and switchers to
convert into hard core loyal as well.

Positioning the brand:

Positioning involves designing the product and image that will occupy a distinctive place in the minds of
the target market. As can be seen, nestle milkpak and Haleeb have the largest profit margins and market
share in the milk industry. Thus the marketers at Olper’s have decided to create its own unique image and
then strengthen the position in the customers’ minds. They have done this by taking a number of
following steps:

1. Packaging of Olper’s milk and Olwell in red color and Olper’s cream packed in purple color are quite
different and distinctive from the typical green and blue packing used by other competitors.

2.The brand has been positioned as an all purpose milk that is meant for everyone, especially for those
who live life to the fullest, hence its tag line, “jo dil khol kay jeetay hain unheen kay liyay hai Olper’s”

Olper’s always tries to create customer intimacy that is it focuses on satisfying the customers’ unmet
needs. Processed milk is seen as less lacking all the nutrition’s that are part of milk due to passing through
so many processes. But Olper’s positions itself as milk that has not lost its nutrients. The unique selling
proposition for Olper’s is: Subah Bakhair Zindagi, but recently the company changed the USP to: Jo dil
khol kay jeetay hain unheen kay liyay hai Olper’s. Both the tag lines have a very positive impact on
Olper’s image because of the emotions involved in both the lines.

The marketers have used different positioning for Olper’s products:

a. They have used the attribute positioning for Olper’s milk. The main theme of the product is that it is
meant for all purposes without any user imagery. Olper’s ads also show attributes of milk such as good
for health
.
b. They used the benefit positioning for Olwell. The product is positioned as delivering the benefit of
helping to reduce weight and for healthy bones.

c.Olper’s 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 extreme care and research.
 SWOT ANALYSIS

Strengths
1. Engro’s back:
Olper’s is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO
foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT and infrastructure business.
The brand is well known so customers will automatically have a brand association with Olper’s and see it
as a premium quality product. ENGRO is world renowned so it can easily attract foreign investors in
backing it against other competitors such as Nestle. ENGRO foods can easily afford research and
development costs for Olper’s have in order to introduce new products. It can also distribute the brand
through better channels because of its long term relationship with distributors in the agriculture sector.

2. PR 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 won’t have to look elsewhere to sell their milk.

3. Positive response from customers:

In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s
products.

4. Its taste: quality proposition and world-class quality proposition system.

5. Strong consumer & product research:

Olper’s done a strong consumer & product research before and after launching the product. This has
provided them the perfect launching pad to eventually emerge as a global player in the food industry. To
develop its future portfolios, EFL has hired various global research partners like AC Nielsen, Mindshare,
JWT Asiatic and MARS marketing and advertising agencies.

6. 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:

1. Olwell TVC:

Olwell ad which is based on Western life style, ENGRO foods brand management showed a man who put
off his clothes & 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. In this ad they are creating associations with the brand
through the stripes, which is a highlight of Olwell packaging. Half naked people have been shown with
tattoos of the same stripes in order to show that they are loyal consumers of Olwell. Also, the talent,
situations and locations connects well with the ad to give Olwell a premium positioning. The brilliant
marketing people at ENGRO Foods failed to analyze is that the market they are targeted the ad on, is
Pakistan, where practicing Muslims reside, who have strong religious beliefs. When making the ad, the
brand managers were focused on, making an ad that should give the brand the most premium look and
feel amongst the target consumers but on the other hand they were least bothered about the ethics,
religious beliefs and cultural values.

2. Owning Red Color:

The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a blue carton etc.
This may create problems because when a consumer enters a grocery shop, then he/she might have
problems in recalling the brand because there is no color association attached to Olper’s. The company
may need to find a suitable color in which to focus its upcoming marketing strategies.

3. Low Quality Milk:

EFL is not having its own dairy farms; it largely collects loose milk from farmers & gawa las through its
40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil
to milk to get higher prices.
4. Packaging:
EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only
option available to Olper’s for packaging because it is having monopoly in the packaging sector in
Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs.

5. Milk collection & distribution costs:

EFL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk processing facility
is situated near Sukkur (Sindh). It increases the milk collection & distribution costs; and also increases the
chances of milk getting spoiled because of increased travelling time.

6. Narrow brand portfolio:

It has been more than a year now, when EFL launched its first dairy product, Olper’s Milk on March20,
2006. But EFL’s brand portfolio still consists of just 3 products i.e. Olper’s Milk, Olwell Milk and
Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a much diversified line of
dairy products.
 Opportunities

1. 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.

2. Increased consumption of PLM:

Competition may create opportunities for the company because each competitor in the milk industry
wants to increase penetration of processed liquid milk and so they will create awareness for consumers
through different advertising media. This will ensure the increase in the consumption of processed milk
instead of lose milk and so will in turn lead to increase in sales for the company. Therefore there will be
an opportunity for accelerated growth.

3. Awareness:

Growing dissatisfaction with loose milk and increasing awareness about health and Hygiene issues have
led to increased processed milk consumption.

4. Third largest producer of milk:

Pakistan is the Third largest producer of milk in the world with a total production of 32 billion 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 milch animals (buffaloes andcows). Livestock accounts for 46.8 percent of agricultural
value added and about 10.8 percent of the GDP. Milk is the largest commodity from the livestock sector
accounting for 51 percent of the total value of the sector. Due to the steps taken by the government and
private sector, country’s annual milk production is expected to grow at an additional 3 billion litres in the
next few years. This is quite an opportunity for ENGRO foods as there is lot of growth in this part of the
sector.
 Threats

1. Competition:

Competition may pose a threat because the company will have to maintain its leadership in an expanding
market so that it doesn’t lose its market share to its competitors. For Olper’s it might be difficult to
penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have
been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality.
Competition seems to be getting tougher as a result of new players entering the dairy market.

2. Perceptions and Price Differentials:

Consumers’ perceptions and price differentials can cause a threat for the company. It is important that
Olper’s comes up to the expectations of the customers and fulfills its conformance quality that is the
company meets its promised specifications. Consumer’s preferences change with time and prices might
create certain barriers in terms of the profit margins for Olper’s. For example, lose milk is still cheaper
than packaged milk and that is also one factor that people still prefer to buy lose milk.
 PEST ANALYSIS

Political Factors:
The situation of a country in terms of devaluation of currency, terrorist attacks, higher prices of sugar, oil
and others. Higher taxes rates. These are the main concern of any company in Pakistan.

Economic Factors:

Inflation rate of Pakistan for the current fiscal year has grown to 7 percent. This thing is really hurting the
purchasing power of Pakistani consumers. PLM which is already considered as more costly compared to
open milk is becoming out of reach of general public. As a result, there is an increased pressure on PLM
companies to either decrease their prices or at least keep prices stable. Moreover, packaged milk industry
which each year pays millions of taxes is not being given any relief in terms of taxes by the
government. Competition is also increasing with the entrance of new domestic players in the dairy and
food sector and plans to increase investments by the already established companies. Nirala, good milk,
Pakola are the few names which have recently introduced their dairy product lines in the market. Major
textile groups are also diversifying into dairy and livestock business and some of them have even
acquired lands to start their business. Leading industrial groups such as Jamal Din Wali Sugar Mills,
Dewan Group of Industries and Shakar Ganj Sugar Mills have already made substantial investments in
dairy & livestock sectors. In March this year, Nestle Pakistan opened a state-of-the-art milk processing
facility in Kabirwala, Punjab. The plant, Nestlé’s largest milk reception facility in the world has a
processing capacity of 2 million liters of milk per day.
Socio-Cultural Factors:

In order to make a noticeable increase in penetration, many challenges and perceptions still have
to be overcome by the PLMCs. The least important one, perhaps, is tradition. Milk, even
amongst the most urbanized consumers, is synonymous with the early arrival of the doodhwala
(milkman) at their home on his trusty bicycle (now replaced by a motorbike), reinforcing the
impression that the milk is fresh, natural and straight from the cow. And it is this perception that
only loose milk is fresh, and therefore healthy and preservative-free, that has to be overcome, if
increased penetration is to occur at a substantial rate. Over the years, all PLMCs, but especially
the two older players, Nestle and Haleeb, as well as Tetra Pak (the company that packages the
processed milk) have been making active efforts to convince loose milk users to switch to
processed milk. In the last six years, Tetra Pak has launched three major campaigns aimed at
changing consumer perceptions. Last year, Tetra Pak’s third campaign, Wohi Dhoodh Aur Kya?
(Milk, What Else?) addressed the misconception that processed and packaged milk has
preservatives. The campaign talked about the benefits of Tetra Pak’s six-layered packaging
material and innovative technology that keeps milk safe for a long time. The highlight of the
campaign was the introduction of a buffalo character called, Moomoo, who explained why UHT
milk stays safe and hygiene for a long time in a Tetra Pak carton. Despite these marketing
endeavors, perceptions cannot change overnight; this requires patience and continuous
investment to educate consumers on the benefits of packaged milk. Every product’s lifecycle
consists of an introductory phase, growth phase and maturity phase. It takes time to change
attitudes, especially in a culture where the concept of fresh milk is healthier option. Another
hurdle in converting loose milk users to processed liquid milk is price. In Punjab, because most
dairy farms are based there, loose milk is cheap at approximately Rs 20per liter, while processed
milk is priced at approximately Rs 38 per liter. In Sindh, however, the price differential between
loose (Rs 28) and processed milk (Rs 38) is only Rs 10. As a result of price considerations, most
PLMCs have not increased prices in the last 5 years. Moreover, Nestle and Haleeb have
introduced smaller packages to cater to consumers with limited cash flows, although there is a
convenience factor at play here as well.

Technological Factors:
In year 2005, the Ministry of Industries and Production established Dairy Pakistan
Company on the lines and model of Dairy Australia. The main objectives of the company
are as under:

a. To promote milk and other value added dairy products in the domestic as well as International markets.
b. To promote development and up-gradation of dairy supply chain in Pakistan by supporting and
facilitating the farmers, processors and other stakeholders across the value chain.

c. To support dairy sector growth by way of supporting and facilitating business development services for
the enterprises across the dairy value chain.

d. To initiate and support interventions across the dairy value chain to enhance sector competitiveness
through innovations and research.
e. To promote technology development, transfer, assimilation, streamlining, acquiring and/or up-
gradation across dairy value chain by undertaking new initiatives.

f. To help introduce international best management practices for better productivity and operational
efficiencies.

laws/standards for providing a level playing field and conducive regulatory environment for the
development of sector and propose amendments thereof in any existing rules/regulations/bye-
laws/standard in the sector and bring local industry in consonance with international standards.

a) Farm Cooling Tanks Loan Scheme

A mechanism for the operation of Farm Cooling Tank Loan Scheme has been proposed and guidelines
are being developed for applicants. They will include standards for quality and hygiene for installation of
the tanks and also details on the testing of the milk being received for composition and quality

b) Model Farms

The targets for this project are to establish 50 farms by the end of June 2006 and 100 by the end of 2006.
An Australian consultant is currently visiting Pakistan for this purpose. First 14 farms in Okara, Punjab
have been formally established as model farms. These farms are generally of medium size and all supply
to Nestle. One model farm has been established in Sindh. Efforts have been made to identify clusters of
farms to be established as model farms at stage two. It is proposed to work with one group of small
farmers who are currently part of Idara-e-Kissan / Halla and a further group of farmers in Sindh who
currently supply to Engro. In stage three, it is proposed to identify further farms with probable extension
of the program to NWFP.
c) Other Policy Interventions

Draft Quality Standards are being worked on by a SWOG group who has provided the first draft paper for
discussion with stakeholders. It is necessary to open a dialogue with PSQCA, PSI and other interested
parties to progress the establishment of Food Safety Standards. Work is also being undertaken to establish
a case for zero rating Dairy Products for sales tax.

Placement & Distribution

According to Director Marketing EFL, “In order to succeed, you should ALWAYS capitalize on your
STRENGHTS and NEVER on your COMPETITOR’S WEAKNESS!”

Engro Foods did exactly that. They used their decades of PR with farmers and used it to provide world
class supply-chain management for delivering the ultimate quality milk in Pakistan.
Having kicked off simultaneously in 20 cities across Pakistan, the launch has been ambitious and
currently Olper’s is available in 80 cities across Pakistan. It reflects the company’s intention to become a
big player in the industry, both on a national and international level.
Engro Foods Limited has its own dales and distribution network. EFL has divided Pakistan into five
regions for milk distribution namely: Karachi, Lahore, Islamabad,
Peshawar and Multan. Due to an appealing color scheme, which stands out in the clutter and thanks to the
EFL’s strong relationship building and special discounts to retail outlets, Olper’s has gained a proper
shelf placement in the presence of competitors like Nestle and Haleeb .
Promotion & Advertising

Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is
concerned, with TVCs, print ads, radio commercials, billboards and plenty of BTL (below the
line) activities including direct consumer and shop branding activities. Due to this aggressive
marketing campaign, the competition seems to be getting tougher. This can be gauged from the
fact that Nestle re-launched its product packaging and marketing campaign just before Olper’s
launch. One can also a far greater number of milk advertising billboards in Multan city than
seen earlier like of Nirala, good milk and Nestle.
Building customer based brand equity:

Brand equity can be defined as the effects that marketing activities have on a particular brand. There are
different types of brand equity but the one that the marketers are most concerned about the customer
based brand equity. Customer-based brand equity is an important element that marketers have to keep in
mind before marketing any brand. There are different ways of building, measuring and managing
customer-based brand equity.

Once the brand is introduced into the market it is important to build brand equity. This helps to
improve sales and has long term benefits. ENGRO, although a separate name from Olper’s has a
very strong impact on the sales of Olper’s. People know ENGRO because of its well established
reputation in fertilization sector. Therefore, they hold a strong association in their minds for
Olper’s as well. There are different nodes that connect ENGRO to Olper’s in the customers’
minds. The ads for Olper’s do not show any link with ENGRO foods but the HR managers keep
mentioning ENGRO in every press release of Olper’s. .that is how people have associated
Olper’s with ENGRO. The sales figure for the first eight months of Olper’s launch showed a
number in billions. This is evidence that people have accepted the brand and liked it. Thus
marketers have been successful in creating customer-based brand equity for Olper’s. This could
be due to strong associations with ENGRO in the minds of customers. Due to just a few brands
in the milk sector it is easier for customers to make different associations for each brand in their
minds. Therefore, a person’s ability to recognize and recall a brand under a given set of product
categories becomes easier. Olper’s has been aggressively promoted which is why customers can
recognize it easily. The red color and the shelf space that the brand commands make it even more
prominent from the rest of the brands.

Although Olper’s product related attributes, such as white color, hygienic and processed milk,
are quite similar to other brands such as Nestle and Haleeb, while the non-product related
attributes such as the packaging of red color and usage imagery that is portrayed in every
advertisement of Olper’s, can be distinguished from the competitors’ brands. Olper’s is promoted
with the viewpoint that the milk is meant for all-purposes. This obviously shows the usage
imagery of the brand.
When it comes to the benefits that customers look for in milk are clean processed milk that is
good for health and can be used for all purposes. Olper’s provides its customers with functional
and experiential benefits. The functional benefits include healthy bones, high calcium, good
taste, while experiential benefits are that every morning starts with Olper’s milk that is the tag
line subah Bakhair Zindagi. Other experiential benefit is the variety that has come into the milk
sector due to another brand entering the market. People can now choose from a number of brands for
milk and especially the variety seekers will definitely want another brand to enter the market.

If, in the beginning, consumers are not willing to buy the brand then it might be due to such factors as low
involvement in that product category or due to brand loyalty towards brands like Nestle and Haleeb.
However, the color of packaging in the grocery stores may attract customers enough to make them buy it,
thus the brand attitude In this case helped the brand to form the basis for customer behavior.

Olper’s has favorable, strong and unique brand associations in customers’ minds. It is favorable
because milk is a need and clean hygienic milk that is free of bacteria and germs is what
conscious customers are looking for. Due to awareness about health and drawbacks of lose milk
the customers are further in search of processed milk. The association is also strong because
there is a very string cue linked to Olper’s and that is
ENGRO foods. Usually people thin Olper’s as a sub brand of ENGRO foods. Due to this reason
customers perceive Olper’s’ as a high quality brand that will come up to their expectations.
Olper’s has created a unique image through its ads. For example, the ad for Olwell is one that is
exclusive and cannot be forgotten. Due to such positive brand image, Olper’s enjoys higher
profit margins and increased marketing communication effectiveness.

Olper’s itself is a very distinctive name that is easy to remember and one that will stay in the
memory for a long period of time. It even serves to enhance the image of the brand as all-purpose
milk. In the same way, Olwell serves the purpose of all is well in terms of customers’ health
Therefore, the choice of brand identity when building the brand equity has been very good.
These create brand recognition and recall all at the same time. Olper’s has been developing
marketing programs to enhance brand awareness initially. Due to familiarity with ENGRO
foods, Olper’s did not have much difficulty in building the customer-based brand equity. Thus
ENGRO can also be seen as a secondary association for Olper’s and one that has strongly
influences the positioning of Olper’s. it has added to the credibility of Olper’s.

Measuring customer-based brand equity:

HR managers used questionnaires to find how customers feel about the brand. They used the indirect
approach with different qualitative and projective techniques (the questionnaire contained some questions
related to sentence completion and brand personality description). They used this to understand
customers’ feelings for the brand. The managers agree that ENGRO Foods has helped improve the image
for Olper’s. They assessed the leverage of secondary associations in this case by comparing the
company’s characteristic with the characteristics of Olper’s.

Managing customer-based brand equity:

The organization is managing the customer based brand equity because they realize the
significance of
Marketing activities and their effect on creating more value for the brand, and so by influencing
brand
Knowledge, sales can be improved. Olper’s is concentrating on the emotional aspect in their ads
in order to focus on the core need of customers .That can be satisfied. Olper’s has also funded
Women’s exhibition in Karachi and sponsored cricket World Cup 2007, and further adding
more value to the brand and managing customer-based brand equity.
.
 INTERVIEW QUESTIONS
Q.1: In last 2 years how many products your organization has launched?
ANS: Last two years alfruit, owsum, omore, tarang.

Q.2: What are the number of products you launched since your entrance in market?
ANS: olpers (cream,milk )tarang(liquid,cream,powder)owsum.alfruit,tarqa asli
ghee,omore,alwell(for diet),different kinds of clorious product(milk)..

Q.3: What is your core competitive advantage over your competitor?

ANS: Aggressive style of business: launching more products in short time.

Q.4 What is the % discount rates you give to your supplier, retailer and wholesaler?
ANS: the discount rate for retailer and wholesaler is according to market. And if target achieved
extra benefit will be given to them.

Q.5: What is the core strategy behind the advertising of your products?
ANS: To target the audience e.g owsum for children, olpers for all purpose, tarang for sweet
lovers like Punjabi’s.

Q.6: How vast are your distribution channels in Pakistan?

ANS: over 500+ distribution channels covering all over Pakistan.

Q.7: Does you have your own transportation to take product to outlets or you outsourced the
transportation system?
ANS: all transportation is outsourced.

Q.8 What are your different marketing strategies for the promotion of product?
ANS:

1. Targeting audience
2.nominal price
3.good discount to distributor when they achieve the target
Q.9 How you make profitable relationship with customer?
ANS : we visit city school and Becon house for profitable relationship programs of olpers and
tarang house full programs are organized all over Pakistan to attract the house wife to use our
product

Q.10 What are your target markets?

ANS: Pakistan, Afghanistan and Oman (and for all ages) Teenagers, children and old persons as
well.

Q.11 Are there any customer relation centre for complaints?

ANS: no customer complaint centre but we have taken feedback through distributors. retailers
and local shopkeepers and then try to solve them and make product as good as possible.
 CONCLUSION

ENGRO FOODS LIMITED is the subsidiary of ENGRO group. Their brands

are one of the top brands in Pakistan in the milk sector. Their products OLPERS
MILK, OLPERS CREAM, AWSUM FRUIT MILK, TARANG TEA and
OMORE ICE CREAM purchased heavily by customers. This is due to marketing
Strategies, Promotion, price and quality of their products. Above mentioned are the
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 their prices are nominal. These are Reasons for the success of their
brands.