Olpers Final Final Report
Olpers Final Final Report
MADE BY
FATIMA SARWAR (GROUP LEADER) (20201-28676)
ALEENA MUBASHIR (20201-28203)
MINAHIL FATIMA (20201-28110)
MUHAMMAD AHSAN KHAN (20201-27410)
HAYA IQBAL (20201-28530)
SHAHZAIB SHAHID
TABLE OF CONTENTS
LETTER OF TRANSMITTAL......................................................................................................................4
ACKNOWLEDGEMENT...........................................................................................................................5
Executive summary................................................................................................................................6
INTRODUCTION OF ENGRO FOODS..............................................................................................7
PRODUCTS OF ENGRO...................................................................7
HISTORY OF OLPERS..................................................................9
OLPERS LOGO......................................................................................................................................10
UNIQUE SELLING POINT......................................................................................................................11
CUSTOMER PERCEIVED VALUE............................................................................................................11
Elaboration of customer perceived value............................................................................................11
BRAND PHILOSOPHY...........................................................................................................................12
SEGMENTATION..................................................................................................................................12
Types of market segmentation........................................................................................................12
TARGETING..........................................................................................................................................14
POSITIONING.......................................................................................................................................15
Positioning of Olpers and Consumer Perception........................................................................15
Position map of Olpers relative to its competitors...................................................................16
First of all, I would like to thank our group member Ahsan Khan for
arranging our interview with Sir Mohsin Hafeez (Shopper Marketing
Manager) at Olper’s, Omung & Fats. We are highly grateful to him
for his guidance and support as well as the necessary information he
provided regarding the project.
Lastly, I would also like to acknowledge and thank all of the group
members for their constant effort and full dedication until the end of
the submission.
EXECUTIVE SUMMARY:
Engro Chemical Pakistan Ltd. is one of Pakistan's most famous companies with
more than 40 years of diverse industry activities in fertiliser and chemical
sectors, and Engro is a subordinate. Engro Chemical Pakistan Ltd. Engro Foods
began its business in March 2006 with the successful launch of Olpers Milk,
Tarang, Olwell and Olpers Cream and has become a leading player in the food
business. There are now two processing plants in Sukkur and Sahiwal. The
supply chain of engro has prepared for the growing sales of the goods due to
the expanded network of milk collections.
VISION STATEMENT:
The Vision statement of Engro Foods state that:
BRAND
Reputation/ promise
VALUE
Delivery/use
Customer experience PRODUCT VALUE
RELATIONSHIPVALUE
Olper's is the world's 18th largest tetra pack consumer, as well as Pakistan's
second largest chilled milk collection company. The heart of olper's message is
that it aspires to be a part of customers' everyday lives and choices, as their
tagline states. “mera intikhab Olper's”. Engro Foods once stated at an event that
the company is a brand of advancement and recognizing consumer needs and
wants. and because olper's is a highly nutritious product and an all-purpose milk
for the entire family, people who want to stay happy, fresh, and productive keep
on buying olper's, and their mornings start with olper's “subah bakhair zindagi”.
Olper's has risen to the top of the food industry in just eleven years thanks to its
promise of healthy nutrition and commitment to sustainability, safety, and
convenience. Mothers who are constantly on the lookout for better nutrition for
their children will appreciate the brand's philosophy.
SEGMENTATION:
Market segmentation is the mechanism by which businesses split big,
heterogeneous customers in smaller, more competitive and efficient markets
with goods and services that meet their particular needs. Buyers in every
industry vary in their desires, money, places, behaviors to buy and activities to
buy. Through segmenting the market, marketers are dividing broad,
fragmented audiences into smaller divisions, which can be accessed more
easily and conveniently through goods and services that meet their specific
needs. In this section we address four critical segmentation topics: customer
segmentation, industry segmentation, foreign segments and efficient
segmentation criteria.
• Segmenting customer markets
• Segmenting business markets
• Segmenting global markets
• Requirements for effective segmentation
SEGMENTING CONSUMER MARKETS: DEMOGRAPHIC
SEGMENTATION Business divides into categories based on variables
including age, gender, family sizes, family life, income, employment,
schooling, faith, ethnicity, generation and nationality
PSYCHOGRAPHIC SEGMENTATION Buyers are divided into various
age, lifestyle and/or personality classes
BEHAVIORAL SEGMENTATION Buyers are divided into classes
depending on their experience, behaviors, and use or product responses.
Many advertisers assume that conduct variables are the perfect starting point
for the construction of the market
TARGETING:
TARGET MARKET SEGMENTS: Well, it is found in the milk sector that all
clients have the same kind of needs and desire or in other words that consumers
have identical tastes.
A) Milk should also be transparent and milk should be free of any germs as well.
B) It should be processed carefully.
C) It can be healthy for bones and health.
SEGMENTING AND TARGETING THE MARKET FOR OLPER’S
Olpers divisions of the industry take simple items into consideration: Olpers
divisions of the industry take simple items into consideration:
• milk to be white
• carefully prepared
• Good for bones and health.
They focus their business on areas close to urban areas and attract people of a
medium or high socioeconomic status. They have always been able to represent
the milking market. The product is special because magnesium, vitamins A and
C are added to the milk
POSITIONING OF OLPERS AND CONSUMER PERCEPTION
High quality
High price
Low price
Low price
High price
High quality
Low quality
Low price
Olpers, the industry leader, is first, followed by Gourmet and good milk. They
market themselves as high-quality and high-priced.
Milk pak aims to position them as low price for high quality.
Haleeb want to be known as a Low priced, low quality brand.
Tarang wants to be known as a medium-priced, low quality brand.
PERCEPTUAL MAP OF OLPERS:
This perceptual map shows the perception of customers about specific
attributes of the milk in the market. The stylish and traditional is
represented on y-axis While, the economy and premium is represented
on x-axis. According to this customers percept olpers with premium
and stylish packaging.
MARKETING MIX STRATEGY OF OLPERS
PRICE:
The company adopts a competitive pricing strategy, the prices of competitors
are compared and then the price of product is determined. The price of Olpers’
vary according to the size of the pack. The 1.5 liter Pack is available at a price
of RS.220 while a 1 liter pack is of RS 160.
PROMOTION
Promotional activities are carried out to attract the customers through
Billboards
televisions
newspapers
Special discounts to retail outlets.
Testing milk is provided to major department stores so that people know
about the quality of the product they’ll use.
An advertisement “Achai Kho Na Jaye” which showcased the importance
of nutrients in milk and UHT treatment of milk by Olper’s to keep the
nutrition intact.
Another campaign “Happy Subah with Olpers” advertised how Olpers delivers
to its customers the best milk filled with nutrition and showed the everyday use
of the milk in the in the lives of public.(TVC 2016)
3. Owsum
BCG MATRIX OF OLPERS AND ENGRO FOODS:
EXPLANATION:
In the BCG matrix I put two things in the star categories: Omore and Tarang
because, as you can see in the table 1, their growth rate is very high. In addition,
the ma. share is also increasing. Both goods are relatively new compared to their
competitors on the market and have a small market share, but viable alternatives
are still available. During this period of scarcity, this growth rate and market
share are incredible. Both these products have great promise, and the company
will greatly grow its market share by heavily investing in them. The
implementation of an investment plan is important. To sustain ongoing growth,
the company must continue to invest to maintain its current market share.
Olper is one of Engro foods' well-known brands and this has led to a dramatic shift In
Pakistan's diary industry. Before olper, haleeb and dairy pack were monopolised in the tetra
packaging sector, but many other brands like good milk, nurpur etc. were put on the market
after the olper success. The olper market now has a relatively high market share and
Pakistan's third-largest milk producer. Olper milk and cream fall under a brand nameolper
umbrella. In order to increase their present market share, Engro could use the Harvesting
Strategy and milk its cow for Omore and Tarang.
Engro food launched the first juice brand called Olfrute at the end of 2010. Olfrute has
relatively low market share, but the potential for growth is fairly high. Olfrute faces a
formidable rival with Nestle's solid brand name. The initial marketing and sales figures show
that this can be a good product, but the benefits of this brand are yet to be achieved. Engro
food also launched flavoured milk with owsum brand name in this particular era. While
half.b's experiences with candia were bitter, now only s. what can Engro do to make this
brand a success.
Olfrute 13%
Engro lauched a high calcium and low fat brand called Olwell. This has been a
major disappointment, and Olwell's market share relative to Nesvita is very
poor, and its sales are starting to decrease from last year estimates. Divesting
strategy can be used as market share began to lose over the last two years and
the market growth of the product is also sluggish.
These are the products with a low market share and a low market growth rate,
and the commodity mostly remains in a breakthrough. Dog items belong to the
Olpers Y-Frooter category, as many people in Pakistan prefer Nestle juice over
it.
SWOT ANALYSIS OF ENGRO
Competition
Perception and Price differential
STRENGTHS IN SWOT ANALYSIS OF ENGRO:
1- ONLY 1 DAIRY FARM: In Nara Sindh, Engro has only one dairy
farm which is insufficient to supply the required amount of dairy
products.
2- MILK COLLECTION AND DISTRIBUTION COST: Engro is
based in Punjab, with 34 out of 40 milk collection centres, while its
milk processing facility is in Sukkur Sindh. The cost of collecting and
distributing products is raised and milk is therefore reduced by
increased travel time.
3- PACKAGING: Engro relies on Tetra packaging as Tetra packages
have a lock on the market. This is why tetra package will charge them
more, thus increasing the cost of production.
1- COMPETITION:
Competition has been a serious challenge, which may make operating
on the market tough when one of Nestle's renowned brands is in the
milk business too long and has marked consumers' minds.
2- PERCEPTIONS AND PRICE DIFFERENTIALS
ECONOMICAL ANALYSIS:
Pakistan is facing horrendous shedding of electric and gas loads because
of which companies have been shut down. Engro Food sources must
compete with the fuel of choice that increases the expenses of the goods
and leads to byproducts that are mostly Omore Frozen yoghurt. In
addition, the purchasers' financial statements can affect the organization's
deals. Chances are that the buying power of the population will constantly
reduce milk supply for milkmen instead of less bundled milk for
microorganisms, which will lead to declining benefits for the Engro Food
species.
SOCIAL FACTORS:
In Pakistan, early in the morning, it is a traditional tradition to extract milk
directly from the cow or from the doodh waala. It is commonly believed that
only loose milk is fresh, safe and sound. In order to achieve significant
market penetration, packaged dairy suppliers must address all these
misconceptions and increase understanding of the safety and wellbeing of
packaged milk.
TECHNOLOGICAL FACTORS:
As a result of scientific feeding and breeding, milk yields per animal have
improved. In 2005, Dairy Pakistan was founded by the Ministry of Industry and
Production, modelled on Dairy Australia. The use of technology has a strategic
edge for companies Olpers uses UHT, while Haleeb uses the technology of
bactofuge.
CONSUMER BEHAVIOR
Consumer behavior is about studying the types of consumer buying decision
behavior, the buying decision process and the factors that affect the buying
decision process. Olpers is a very successful brand because it is associated with
ENGRO Foods (Pvt) limited which is known for its significant role in
alleviating poverty and its corporate social responsibility initiatives. Due to this,
ENGRO has a really good image in the market which makes the customer view
Olpers as a reliable and a good quality product.
TYPES OF BUYING DECISION BEHAVIOR
Consumer buying behavior depends on the type of product they are buying and
level of involvement requires to buy it. There are four types of consumer
behavior: habitual buying behavior, variety-seeking behavior, dissonance-
reducing buying behavior, complex buying behavior. Olpers customers indulge
in habitual buying behavior because it is a house-hold product that is purchased
frequently. As it is purchased on a daily basis and takes up a very small
proportion of the customer’s income, there is very low customer involvement so
they don’t usually search extensively or evaluate Olpers each and every
characteristics. In habitual buying, customer do not form a strong attitude
towards but they buy it out of habit rather than strong brand loyalty. Olpers
makes advertisements that target the emotions of mothers and builds a sense of
familiarity so that they purchase the product out of habit. The customers of
olpers focus on the quality of the milk rather than the affordability. The main
target audience are home-makers whose main priority is the health of their
children and family. They focus on the quality of milk because cannot comprise
on the health of children and the taste of the food they cook using the milk.
BUYING DECISION PROCESS
The buying decision process is a holistic approach which studies the whole
journey of the customers from getting to know about a product to making the
decision to buy the product.