c
 

 


 






  
  
  
   







 


 !" ""

#
# 
 
 
$

% & 
'

Engro Foods (Pvt.) Limited (EFL) was been established in 2005 as part of a diversification
process at the Engro Group. ENGRO wanted to setup a new fertilization plant but due to
certain constraints from the government wasn͛t able to do so. Therefore, the organization
decided to move into a new market. Olper͛s Milk, company͛s first brand was launched in
March 2006 in 20 cities of the country simultaneously


( '

ÿ Leadership
ÿ Innovation
ÿ Diversity and International Focus
ÿ Quality and continuous Improvement
ÿ Candid and Open Competition
ÿ Individual growth and development
ÿ Enthusiastic pursuit of profit
ÿ Ethics and integrity
ÿ Safety, Health and Environment

c


)
 
'

The milk sector shows a market that has homogeneous preferences that is the consumers have
similar preferences.

ÿ They want milk to be white.

ÿ It should be carefully processed
ÿ It should be good for health and bones.

ÿ -
c
 

Olper͛s 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.
 ÿ þ 
c
 

Olper͛s have segmented the market more towards achievers who are goal-oriented and
focused on their careers, and those who are seeking variety in the milk sector.

ÿ *
c
 

Olper͛s products have been segmented on the basis of benefits that consumers seek in the
milk. People look for a brand that can be used for all purposes from drinking to, tea whiteners
as well to feed the animals.

þ  

 +

'

ÿ Packaging of Olper͛s Products color are quite different and distinctive .

ÿ The brand has been positioned as an all purpose milk especially those who live life
to the fullest, hence its tag line, ͞jo dil khol kay jeetey hain unheen kay liyay hai
Olper͛s͟
ÿ They used the benefit positioning for Olwell.
ÿ Olpers͛s cream is positioned as good for a specific use or application.

c)
  '

c

  

ÿ Engro͛s back
ÿ Positive relations with farmers.
ÿ Positive response from customers.
ÿ Strong customer or product research.
ÿ Third generation plan


  

ÿ Olwell TVC.
ÿ Packaging.
ÿ Low quality milk.
ÿ Milk collection and distribution costs.


  

ÿ Increased government funding.

ÿ Increased consumption of processed milk.
ÿ àwareness.
ÿ Third largest producer of milk.

)
 

ÿ Competition
ÿ Perceptions and price differentials.


  
+  '

ÿ Launched on 20 March 2006.

ÿ UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats.
ÿ available in easy-to-open, 6-layered Tetra Pak Brick àseptic red packaging.
ÿ 3 months shelf life.

þ

-
+ 


Engro Foods Limited has its own 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
EFL͛s strong relationship building and special discounts to retail outlets, Olper͛s has
gained a proper shelf placement in the presence of competitors like Nestle and Haleeb

þ


EFL is pursuing the competitive pricing strategy for its products. In competitive pricing
the price of the product is determined considering the price of major competitors like
Nestle, Haleeb etc.
þ
 


 


ÿ àggressive marketing campaign.

ÿ TVCs, print ads, radio commercials, billboards and plenty of BTL (below the line)
activities including direct consumer and shop branding activities.
















    

    & 
'

Nestle Milkpak was first introduced in the market in 1981 and originated the packaged
milk category by which they pioneered Tetra pack milk in Pakistan. However Milkpak͛s
͞Milk packs͟ were very well received and the brand soon received and the brand soon
became synonymous with quality milk. Its first real competition came in the form of
Haleeb.


 
c
  '


Nestle is pursuing growth strategy. They have invested $10 billion at Kabirwala Plant
and they are planning to invest $38 billion in the milk business.

c
 

)
 
'

ÿ Geographical
ÿ Target Market is major populated cities of Pakistan
ÿ Demographic
ÿ For the users in higher upper or middle class families

)
 


ÿ Urban areas of the country.

ÿ Upper and Middle Income Class

þ  


-

 


þ  


Nestle Milkpak has adopted the functional positioning strategy like:
͞Khalis He Sub Kuch Hai͟
͞Wohi Qudarti Maza͟
͞Jaan Banao͟
c)
  '

c

 

ÿ Strong brand image.

ÿ Quality Product
ÿ Solid financial position.
ÿ Conduct more training programs.
ÿ Try to collect fresh and clean milk.
ÿ Make shops for farmers.
ÿ Strong supply chain networks.
ÿ Qualified workforce.
ÿ Commitment to high quality
ÿ Focus on research and development


 

ÿ Does not give milk on credit.

ÿ Spend less on advertising.
ÿ High price.



  

ÿ World͛s 3th largest industry.

ÿ Introduce value- added products.
ÿ Innovations in product development, packaging and presentation.
ÿ Opportunities for investors to invest in Pakistan.
ÿ Increasing employment for the people.

)


ÿ Low quality milk

ÿ Poor profitability for farmers.
ÿ Lack of contacts for farmers to market mechanism.
ÿ Lack of education among the farmers.
ÿ Difficult to meet future consumer demand.
ÿ Load shedding.
þ


ÿ Quality product
ÿ Product style and logo
ÿ Product life cycle.

þ


ÿ Competition based pricing

þ


+ 

Milkpak is not sold directly to consumers. It uses indirect channel s for distribution.
Color of the brand is green and white, which are the colors of Pakistan͛s flag.

þ
 

ÿ àdvertisement
ÿ Public relations

þ 
'

Nestle has been ruling the milk industry for nearly 2 decades. It was not spending much
on advertisement and promotional programs. Nestle Milkpak had been like a sleeping
giant. Evidently Olper͛s has woken up the competition. Milkpak has responded with
campaigns of its own to reaffirm the positive equity of its brand




   
'

Branding experts could not imagine how Olper͛s could distance itself from its parent
company͛s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the
end of 2008 the brand has a market share of close to 22% second only to Milkpak (40%).