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Hamdard Institute of Management and Sciences

Principle of Marketing
(Final Term Report)
Marketing Mix Concept
Client:
Engro Food

Submitted to:
Mr. Asim Mehmood

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Prepared by:
M. Assad Fahim Khan (313001)
Abdul Rehman Ashraf (313003)
Syeda Tehmina Usman (313002)
Zermina Sher (313005)

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TABLE OF CONTENTS
ACKNOWLEDGEMENTS.............................................................................................................. 5
ABSTRACT ................................................................................................................................. 6
WHAT IS MARKETING MIX......................................................................................................... 7
The Importance of Marketing Mix! ............................................................................................ 7
Create Marketing Plan that Aligns with Mix .............................................................................. 7
The Marketing Mix (The 4 P's of Marketing) .............................................................................. 9
The Marketing Mix ................................................................................................................................................. 9

Product Decisions ............................................................................................................................ 10

Price Decisions ................................................................................................................................. 10
Distribution (Place) Decisions ........................................................................................................... 10
Promotion Decisions ........................................................................................................................ 11

Milking the Market ................................................................................................................. 11

Engro Foods History ............................................................................................................... 12
Vision .............................................................................................................................................. 13
CoreValues ...................................................................................................................................... 13
DEPARTMENTS ................................................................................................................................ 13

Marketing Research conducted by Engro Foods ....................................................................... 16

ENGRO FOODS Product Range .......................................................................................................... 18

Marketing Mix of Engro Foods ................................................................................................ 21

Product............................................................................................................................................ 21
OLPERS .................................................................................................................................................................... 21

Every day is a celebration with our crme de la cream! ................................................................ 22

DAIRY OMUNG & TARANG ...................................................................................................................................... 22

Tarang in your tea-cup makes for sheer bliss .............................................................................. 23

TARKA ..................................................................................................................................................................... 24
OMUNG LASSI ......................................................................................................................................................... 24
JUICES AND NECTARS .............................................................................................................................................. 24

heavenly nectars from Engro Foods ............................................................................................... 24

ICE CREAM .............................................................................................................................................................. 25
PERIODICALLY INCREASINING IN BRANDS .............................................................................................................. 26
ACHIEVEMENT OF ENGRO FOODS .......................................................................................................................... 26

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PRICE ............................................................................................................................................... 27
Price Decisions: ....................................................................................................................................................... 27
Pricing Strategy ....................................................................................................................................................... 27
Cost-plus pricing ................................................................................................................................................... 28
Value based pricing ................................................................................................................................................. 28
Price list of Engro Food Products ............................................................................................................................ 29
Place ........................................................................................................................................................................ 30
Supply Chain Management in Engro Foods ............................................................................................................ 30
Inbound Logistics .................................................................................................................................................... 31
Outbound Logistics: ................................................................................................................................................ 31
The warehousing and distribution of finished goods. ............................................................................................ 31
Objective of Supply Chain Management in Engro Foods ........................................................................................ 31
Engro Foods Distribution Channels ......................................................................................................................... 31
LOGISTICS ................................................................................................................................................................ 32

Promotion ....................................................................................................................................... 34
Olpers Milk .............................................................................................................................................................. 34
Advertising .............................................................................................................................................................. 34
Olper cream ............................................................................................................................................................ 34
Omung lassi............................................................................................................................................................ 34
Comparision with other brands .............................................................................................................................. 35
Building customer based brand equity ................................................................................................................... 35
Success of olpers ..................................................................................................................................................... 35
Oplers packing ........................................................................................................................................................ 36
Milk for bones ......................................................................................................................................................... 36
Best quality ............................................................................................................................................................. 36
Unique image .......................................................................................................................................................... 37
Distinctive name ..................................................................................................................................................... 37
Credibility ................................................................................................................................................................ 37
Measuring customer-based brand equity............................................................................................................... 37
Managing customer-based brand equity ................................................................................................................ 37
Social Responsibility ................................................................................................................................................ 38

Conclusions ............................................................................................................................. 39

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ACKNOWLEDGEMENTS

Firstly we would thank Allah for giving us the opportunity and the
resources to be able to do something productive with our lives.
Without His blessings we would not have been able to come as far
as we have.
Then our sincere thanks to Sir, Asim for helping us throughout this
report. His guidelines have been very useful for us in preparing
this report. He helped us find new ways of being innovative and
creative.
This

report

would

not

have

been

possible

without

his

cooperation and continuous direction.

Last but not the least we would like to thank our families for their
incessant support and approval.

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ABSTRACT
This report is about the marketing mix of Engro Foods from the time when
ENGRO foods came up with the idea of adding a new product line to their
already well established and long set of product lines to the point that they
are still heavily promoting their product. We start by giving a brief history
about Olpers and how it came into existence. We talk about the corporate
structure and organizational hierarchy of ENGRO Fertilizers, its mission
statement and the vision. We move further with its goals that it has thought
about for Olpers and eventually the type of organizational culture of the
organization.
We discuss the types of marketing research conducted by the company before
introducing it to the market and how they have segmented its target market
and positioned the product in the minds of the consumers.
Olpers.

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WHAT IS MARKETING MIX

The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical or
operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps
are price, place, product and promotion. The services marketing mix is also called the 7Ps and
includes the addition of process, people and physical evidence.
The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk,
flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements
contained in it. So for a sweet cake add more sugar!
It is the same with the marketing mix. The offer you make to your customer can be altered by
varying the mix elements. So for a high profile brand, increase the focus on promotion and
desensitize the weight given to price.

The Importance of Marketing Mix!

Create Marketing Plan that Aligns with Mix
The importance of marketing mix is often overlooked in strategy. Create marketing plan strategies
for your business that include writing action plans, building integrated marketing communication
mix tactics, developing differentiation and positioning statements, and more.
Marketing being an integral part of operations in a company, companies often invest and allocate
substantial financial resources and efforts into marketing activities. In the current scenario it is
necessary to be accurate and efficient in managing the marketing resources and the budget allocated
to the activities. Choosing an effective strategy with right combination of marketing activities is a
challenge in a scenario where you have multiple options, multiple segments and product offerings.
The marketing mix would necessarily consist of the activities like sales, promotions & advertisements
(both online and offline), duration of the activities, timing and frequency of the activities depending
upon the product and its variants, the target segment, the distribution network, channel reach, the
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region, size and based on the planned marketing activities understanding the potential of the market
through market research.
The benefits of the efficient management of these activities are precision in reaching out to the target
audience, understanding the returns by each of the activities, reduction in cost by cutting down
doubling effect & effective management in overall efforts, time & cost.
Introducing the concept of opportunity cost here, when accompany allocates human resources,
financial resources, time and efforts targeting the planned marketing segments, it is choosing between
markets and marketing options bases on expected results. Hence the activities are chosen between
multiple options and if the frequency and duration of activities are precisely managed; the marketing
efforts will yield better results with improved efficiency.
The management of marketing mix acts as a regular audit on the marketing activities being carried
out and can be closely monitored to yield better results. This helps in real time coordination on the
marketing efforts.
Though in practice companies use business Intelligence software and KPIs for the understanding of
the marketing activities and product performance across targeted markets; it is necessary to
understand in a constantly changing business environment with changes in technology, external
business environment and governing policies; it becomes difficult to act upon the KPIs and will have
to rely on intuitive understanding of the business strengths and environment.
In a scenario where consider promotional options of news & media advertisements, sponsorships,
online marketing, hoardings, tradeshows are cost intensive it is a dilemma to choose the right mix in
targeting the desired market segments.
In services industries the marketing is dependent on the online marketing and direct sales, where as
in a product based or B2B manufacturing industry it is dependent upon the strong distribution
channel & network, in a FMCG, Telecom, Consumer Durables, industries it is dependent again on the
distribution network but also on advertisements and promotions through the media network. In
investment intensive industries to a major it is dependent upon the activities of focus with the
background of clientele and past projects delivered.
General mistakes companies make in reaching to a market segment are overlapping of activities
(channels) for the same target segment and product. This generally happens in services, FMCG sector
where the end user is the individual consumer. It is important to choose limited marketing channels
for the targeted market segment to make sure the customer does not get irritated by the marketing
activities.

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The Marketing Mix

(The 4 P's of Marketing)
Marketing decisions generally fall into the following four controllable categories:

Product
Price
Place (distribution)
Promotion

The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The
Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after
James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in
Borden's marketing mix included product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and
analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are
known as the 4 P's of marketing, depicted below:

The Marketing Mix

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These four P's are the parameters that the marketing manager can control, subject to the internal and
external constraints of the marketing environment. The goal is to make decisions that center the four
P's on the customers in the target market in order to create perceived value and generate a positive
response.

Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples
of the product decisions to be made:

Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services

Price Decisions
Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.)

Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions
include:

Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
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Distribution centers
Order processing
Transportation
Reverse logistics

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of
generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.)

Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget

Milking the Market

In the recent few months, it seemed that everywhere one looked, there was either a billboard, a TVC
or a radio jingle promoting a brand of milk whether it was Haleeb, Nurpur, Pakola, Nirala, or,
recently, Olpers.
But perhaps this isnt surprising after all. Pakistan, according to recent statistics, is the third largest
milk producing country in the world (32 billion liters per year from 50 million animals, with urban
consumption at nearly seven billion liters). However, despite this high ranking, packaged milk, even
according to the most optimistic estimates, has a mere four percent penetration. No wonder then
that processed milk companies (PLMCs) have been rather aggressive in their advertising and
marketing endeavors in an attempt to increase the penetration.
Industry experts believe that the current economic turnaround has contributed to the growth in the
PLM sector, resulting in increased consumer purchasing power. Another reason for growth is a
growing awareness pertaining to health and hygiene; this factor, coupled with increasing
dissatisfaction with loose milk, has also contributed to growth in this sector.
However, in order to make a noticeable increase in penetration, many
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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. 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 24 per
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.
Though hurdles such as consumer perceptions and price differentials have still to be overcome, the
processed liquid milk market looks set to grow. There is a whole world out there to be converted,
and it is a huge opportunity for PLMCs. If the economy remains stable for the next five years,
penetration will increase at an amazing rate.

Engro Foods History

Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification process
at the Engro Group. The plant located at Sukkur on 23 acre land, has the raw milk reception
capability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day. The plant has
been established at a cost of Rs. 1 billion which provides direct employment to 750 people.
Engro Foods has entered the Food business through milk processing and sale with the companys
vision to pursue growth opportunities based on country fundamentals and own strength. It also
positions the company to leverage its corporate social responsibility initiatives and work closely
with rural communities to promote integrated farming and livestock development. This effort is
expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the
milk collection areas.

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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."

CoreValues
(1)

Leadership.

(2)

Innovation.

(3)

Diversity and International focus.

(4)

Quality and continuous Improvement.

(5)

Candid and open communications.

(6)

Individual growth and development.

(7)

Enthusiastic pursuit of profit.

(8)

Ethics and integrity.

(9)

Safety, Health and Environment.

DEPARTMENTS
(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
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out of the Companies' pockets is

properly
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documented and audited.

(3) Human Resource

The Human Resource department at Engro Foods (Pvt.) Limited spearheads the
recruitment process to ensure that the finest human resource is taken on board at
Engro Foods. Resumes of candidates are carefully filed and documented for current or
future reference. The department, besides carrying out succession planning, maintains
and implements HR policies pertaining to employment, retention and superannuation.
Assessing training needs of employees and ensuring adequate training is also carried out
by the professional HR team at Engro Foods.
(4) Marketing
Consisting of leading marketing professionals of the industry, who are graduates of top
business schools of Pakistan, the Marketing Department ensures that from product
need identification to product development, launch and post-launch,

all strategic

decisions are made based on authentic information and research. Identifying the target
markets, effectively communicating to them and building the image of the brands as
well as the Companies, is the job of the professionals running the marketing at Engro
Foods.

(5) Milk Procurement

As all of our food products are milk based, the entire Milk Procurement department
plays 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 and ascertaining the freshness of milk all across the milk procurement
process, is the responsibility of Milk Procurement department, consisting of food technologists
working at the collection centers and veterinary doctors providing service to the farmers.

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(6) MIS
The MIS department at Engro Foods ensures that all automation is running error-free at all
times. Regularly modifying and updating the Company's accounting software is also the MIS
team's responsibility.
(7)Production
Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art
plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk
per day, making it one of the largest in the country. Professionally qualified human
resource efficiently works night and day to maintain highest hygiene standards.

(8)Quality Assurane
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 & 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.

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Marketing Research conducted by Engro Foods

Marketing research is an important step when a new product is to be launched into the
market. There are many risks associated with that new product and especially when a
company decides to diversify into a completely new market that it was not previously
catering to. Thus in order to reduce the magnitude of the risks and to be successful,
large

organizations

with

research

and

development

department

conducts

the

marketing research. Even those organizations that do not have a R&D department can
conduct marketing research through other companies that are providing the facility of
marketing research.
The researchers started off with secondary data that was available. They tried to uncover the level
of complexity involved in such a decision and the magnitude of success. But that wasnt enough so
they started to collect primary data through the use of different techniques. The first started with
survey research to understand the peoples beliefs, preferences and core needs that can be satisfied
by introducing additional products. The researchers also conducted observational research to
observe the people in different settings. They used it to find out which brand the people really
bought, where did they take more time in purchase process and where did they look when they
were shopping for grocery. This helped them to see the shelf-space that can be used. They used the
method of shadowing that is they observed people while using the product. They also conducted
unfocused groups where they interviewed a diverse set of people to explore ideas about the brand
and what more they want in the food sector to be available to people.
The researchers conducted questionnaires to find the responses of consumers about Olpers. They
got a positive feedback from the customers who also encouraged them to invest further and to
setup a new plant in Sahiwal. Through different research methods the organization was also able to
find out the number of loyal of competitors brands.
Once all the information has been collected, it is further analyzed to extract findings from the data.
The researchers used all types of statistical methods such as frequency distribution to now the
number of people buying the brand, average and measures of dispersions for major variables. They
also applied some decision models for additional findings.
After the analysis of data researchers present the findings to the decision makers who pass the final
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verdict. Due to the positive responses of consumers, the decision makers decided to go ahead with
the idea of introducing more product lines to the food Olpers brand. It can be said that successful
marketing research helps the marketers to understand the costumers needs that are still
unfulfilled. The two new products of Olpers in the market are Olwell diet milk and Olpers cream.
The organization has further plans to expand more in this sector and introduce more products
related to milk.

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ENGRO FOODS Product Range

Sheer indulgence in every sip comes

only with the rich creamy thickness of
Olper's. Give your day a fresh start with Olper's!

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!

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Embrace the lighter side of milk and

feel years lighter with our low-fat milk
Olper's lite, for a guilt-free existence!

Enhance the culinary experience with

Olper's Cream - a rich celebration of
life at its creamy best.

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Experience sheer bliss in a tea-cup with

Tarang, our special tea creamer for
that perfect cup of tea.

Enjoy our heavenly nectars extracted

from pure fruits to revitalize you with
a much-needed boost, anytime
anywhere. Only with Olfrute.

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Get nutrition and the best value for

money with omung dobala.

Rise up to a better life with our all

purpose dairy brand Omung available
at the ultimate price and in the best
Quality.

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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.

Enjoy home-made Lassi in the

convenience of a Tetra Pak. Refresh
your day with our two delicious.

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Marketing Mix of Engro Foods

The marketing mix covers all the aspects which play an important role in the
p h y s i c a l appearance, affordability and the way a product is placed in front of the consumer. It helps
in building an image which would in the end help the company to capture
huge market.

Product
OLPERS
Engro Foods was established in 2005, and it is subsidiary company
of Engro Corporation. Engro Foods launched its first product with
brand name OLPERS. At that time other competitive products
was widely available in market such as Nestle and Haleeb.
In next coming months and years OLPERS gained preference in the market over established brands
after launched due to its healthy features and properties of its product.
Olpers milk is EFLs standardized and homogenized pure UHT (Ultra heat treated) milk with 3.5 %
fat and 8.9 % solid non-fats. It is EFLs 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.
Available in 4 SKUs of 200 ml, 500ml, 1000 ml and 1500 ml value packs, today Olper's combines
nutrition, value and taste to deliver an unforgettable consumer experience to every individual within
every house-hold where the day begins with Olper's.
After the success of OLPERS ,EFL (Engro Foods Limited) launched
OLPERs LITE
The ideal low-fat, hi-calcium milk for adults who want to stay healthy, active and fit
for life, Olper's Lite contains all the inherent nutrients of milk that can boost energy,
without the extra calories that cause weight gain.

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Rich in iron and calcium content, Olper's Lite has been specially formulated to provide nutritional
benefits to the growing number of health conscious consumers in Pakistan, who seek products that
can keep their calories in check whilst ensuring their health, nutrition and well-being.
Available in liquid format, today Olper's Lite is the preferred low-fat milk in
the market with all the necessary ingredients to help adults achieve optimum
health and keep it light by staying calorie and guilt free!
Specially for the children who run away from smell of traditional milk
EFL launched flavored milk. OLPER Badam Zafran Milk
Inspired by the traditional flavors of badam, zafran and rose, Olper's
Flavored milk caters to a diverse cross-section of consumers, with a
penchant for natural ingredients infused in rich, creamy and aromatic milk.
Launched in 2011 and available in 250 ml packs, Olper's Badam Zafran and
Olper's Rose present
the rare combination of great tasting milk fused with the natural flavors of badaam, Zafran and
Rose for discerning customers seeking a wholesome experience of nutrition, taste and tradition.
Immensely popular within a growing segment of the market, Olper's Flavored Milk is the best
choice for everyone craving a taste of badam, zafran and rose in every glass of milk.

Every day is a celebration with our crme de la cream!

The cream of all creams, Olper's Cream is a rich, creamy delight that
has initiated a new trend not just amongst baking enthusiasts and
dessert makers, but also within conventional households, where it is
generously splurged over every-day food items as the primary
ingredient to enhance the culinary experience by transforming it into
a scrumptious creamy sensation.
Steadily garnering consumer loyalty and a growing market share since its launch in 2006,
Olper's Cream ranks among the country's leading brands in the UHT cream category as it
continues to make meal-times, as well as break-fast and afternoon
tea rituals a rich, creamy celebration day after day.

DAIRY OMUNG & TARANG

After successful launched of OLPERS brands EFL launched new brands
with name DAIRY TARANG & DAIRY OMUNG
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While OMUNG DOBALA is the cream.

Sourced from pure milk, Dairy Omung is our wholesome all purpose dairy brand
that provides price and quality conscious consumers with a premium milk
product at an affordable price.
Specifically targeting house-wives who consume loose milk and are
responsible
for the health and well-being of their family.

High nutrition at a very low price

Launched in 2010, Omung Dobala is our low priced high nutrition

vegetable, fat cream that offers a healthier alternative to dairy based UHT
cream.
A leading asli desi ghee brand that combines vegetable oil with excess fat extracted from milk,
Omung Dobala aids good health by helping consumers strike a much needed balance between
eating right and living well.

Tarang in your tea-cup makes for sheer bliss

Pakistan's No. 1 tea-whitening brand, Tarang is a specialized tea creamer
that makes the perfect
cup of tea guaranteed to transport tea-lovers into a state of sheer bliss any time
of the day.
The only team-creamer that combines convenience with lasting quality and
real value for money, Tarang is available in liquid and powder formats that
further extend the brand's appeal to a wider audience.
With its distinctly fresh aroma, rich taste and strong focus on enhancing the
tea-drinking experience for everyone, Tarang has evolved into our biggest and
most profitable brand since its launch in 2007, after securing a firm place in the
hearts of millions of tea-enthusiasts all across Pakistan

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TARKA
Launched in 2005, Tarrka is EFL premium desi ghee distinct for its pure
flavor and rich aroma. 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.

OMUNG LASSI
Engro Foods Launched fresh Lassi specially for the children
And the people who are living in the urban areas of the country.

JUICES AND NECTARS

heavenly nectars from Engro Foods
The launch of Olfrute beverages in 2010 is our first non-dairy initiative and a
major step forward towards diversifying product portfolio in high potential
markets.
A refreshing fruit beverage extracted from pure fruits to entice and delight even
the most discerning taste-buds, Olfrute juices are available in two SKUs of 1000 ml
and 200 ml and offer a wide assortment of exciting fruity flavors including red
grape, apple, guava, green cock-tail, mango, apricot
and orange to cater to a diverse spectrum of urban consumers.
With a highly enthusiastic consumer response to our extensive range of fruity nectars, we are
confident that Olfrute juices will soon become the leading brand in the juices and nectars category.

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ICE CREAM
Launched in 2009, Omor's scrumptious range of ice-cream and frozen
desserts are a glorious treat for everyone, be it children or adults.
With its rich, creamy taste, high nutrition content and wide-range of flavors and formats, Omor is a
delectable ice-cream and frozen desserts brand that seeks to cater to a wide range of consumer
groups and taste palettes.
Available in more than 30 SKUs including ice-lollies, tubs, bricks, cups, cones, and sticks of different
sizes, Omor has become a household name across Pakistan.

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PERIODICALLY INCREASINING IN BRANDS

ACHIEVEMENT OF ENGRO FOODS

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PRICE
Price is the amount of money charged for a product or service.
It can also be define as:
The sum of values that consumers exchange for the benefit of having or using the product or
service.
Pricing is the only element in the marketing mix that produces revenue; all other elements
represent costs.
Price is also one of the most flexible elements of the marketing mix unlike product features
and channels commitments, price can be changed quickly.
Price includes the price strategy of the company for its products. How much customers should
pay for a product? Pricing strategy not only related to the profit margins but also helps in
finding target customer. Pricing decision also influence the choice of marketing channels.

Price Decisions:

Price strategy
List price
Payment period
Discount
Financing

Important note: Engro food never works in credit terms.

Pricing Strategy
According the marketing plan of Engro foods, they are using Premium Pricing Strategy the
reason behind the premium pricing is that they are producing Premium quality product and
they are doing premium positioning of their product.
The pricing strategy for Engro foods is as such that it is differentiating its products from the
rest of the competitors. Its prices are higher than the local brands and are less than the
international brands. The price of Engro foods products is competing with both the local
market and international brands.

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 Pricing strategy requires continuous monitoring because of changing external conditions, the
actions of competitors and the opportunities to gain a competitive edge through pricing
action.
An Engro food uses two types of pricing strategies for pricing their
products:
1. Cost-plus pricing
2. Value pricing

Cost-plus pricing:
Cost-plus pricing Is used when a standard markup is added to the cost of the
product.
An Engro food uses this strategy while launching its new Products.
They do so as to check their demand in the local markets before
starting their production.
Firstly, they analyze the total cost that is incurred in the process of production of new
product(s), company's marketing and selling expenses and company's margin (the margin is
kept to the minimum in this case).
Secondly, if the product succeeds then they start manufacturing it at large scale. But, if
unfortunately, that product(s) does not get the expected acceptance by customers, then they
stop the production of such product(s)

ADVANTAGES OF COST-PLUS PRICING

The main advantages of Cost-plus pricing are:
They are more certain about costs than about demand.
They do not have to make frequent adjustments as demand changes.

Value based pricing:

This strategy is about charging just the right combination of quality and good service at a fair
price.
Engro foods uses this strategy For its well established Products
This strategy helps Engro foods Generate its revenue from its existing Products

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Price list of Engro Food Products

Product

Pack Size

Packs per Carton

Price to Retailer
per Carton

Price to Consumer

Per Carton

Per Pack

Olper Milk

1 Liter

1*12

12*84=1008

1080

90

Olper Milk

1500 ml

1*8

8*122=976

1040

130

Olper Milk

250 ml

1*24

24*24=576

648

27

Olper Cream

200ml

1*24

24*64=1536

1680

70

Tarang Milk

250ml

1*27

27*21=567

621

23

Omung Dobala

250ml

1*27

27*18=486

540

20

Omung Dobala

1000ml

1*12

12*67=804

840

70

Dairy Omung

250ml

1*27

27*19=513

594

22

Omung Lassi
Meeti

200ml

1*24

24*13=312

360

15

Omung Lassi
Salti

200ml

1*24

24*13=312

360

15

Omore Kulfa
ice-cream

1Litre

1*1

1*140=140

160

160

Omore Kulfa
ice-crema

100ml

1*10

10*31=310

350

35

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Place
According to Engro Foods Limi ted EFL, in order to succeed, you should always capitalize
on your strengths and never on your competitors 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
Olpers is available in 80 cities across Pakistan. It reflects the companys 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 EFLs strong relationship
building and special discounts to retail outlets, Olpers has gained a proper shelf placement in the
presence of competitors like Nestle and Haleeb.

Supply Chain Management in Engro Foods

Customer Need
(Requirement
defined)

Raw Material
Acquisition from
collection center

Transportation
to Plant

Storage

Distribution

Ware Housing

Packaging

Processing

Retailers

Final Consumer
(requirement
Fulfill)

Whole sellers
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Inbound Logistics:
The receiving and warehousing of raw materials and their distribution
to manufacturing as they are required.

Outbound Logistics:
The warehousing and distribution of finished goods.

Objective of Supply Chain Management in Engro Foods

The core objective of supply chain at Engro is that Customer needs are met by optimum ways.
Overall objective is to offer customer a level of value that exceeds the cost of the activities, thereby
Resulting in a profit margin.

Engro Foods Distribution Channels

7 Distributors (General Trade)

ICA (International Chain Account)
Makro (10% of total Sales)
Metro (10% of total Sales)
Food Services
2 Distributors (10% of total Sales)

Sales
The Sales of Engro Foods products are divided into
1. Primary Sales
2. Secondary Sales

Primary Sales: Refers to the sales of the batches of products by the manufacturer to the
distributors.

Secondary Sales: Refer to the sales by the distributors to the retailers from where the goods are
eventually sold to the ultimate consumer. So Engro Foods is the following the
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traditional channel of distribution that involves some intermediaries between the transfer from
producer to the consumer.

Manufacturer
M
(Engro Foods)

Retailers

Distributors

Final Consumer

LOGISTICS
For the Sake of transportation of the finished goods from the Engro Foods maintained warehouses
that are situated right next to the facility until the distributors, a fleet of trucks is maintained by
Engro Food themselves while part of the transportation has also been outsourced or third party
Logistics. A third party logistics provider is a firm that provides outsourced or third party logistics
Services to companies for part or sometimes all of their supply chain management functions.
Third party logistics providers typically specialize in integrated warehousing and transportation

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services that can be scaled and customized to consumers need based on market conditions and the
Demands and delivery service requirements for their product and materials.
As far as responsibility of distributing the goods is concerned, the out reach of the Engro Foods and
the third party logistics is limited to the distributors only. Engro Foods has almost 200 distributors all
over the Pakistan. Some of the distributors deals with larger areas and larger orders while others are
smaller ones. For the larger orders finished goods are transported directly to the distributors agreed
upon the point of delivery, while for the smaller distributors goods are also being delivered and
deposited in warehouse facility maintained by Engro Foods in some important locations all over the
Pakistan. The network distributions is very extensive and extends all the way to Afghanistan.

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Promotion
OLPERS MILK
Olpers 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 Olpers 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.

Olpers Milk
Media mix for Olpers milk includes TV, print, outdoor, radio & BTL
activities. Olpers considers radio still an effective medium because
A & B house wives still listen to the radio on a daily basis.

Advertising
Graphics of the ad are excellent except the body copy which is quiet overloaded with information. TVC
however, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only 3
seconds of branding! This type of advertising has never been practiced in Pakistan. Using celebrities
like Shan is not a good option as he has already developed his association with Mobilink. But overall
Olpers has done a great job in designing and executing its ad campaign.

Olper cream
Color is soothing, caption is great. But the picture of the pastry is not attractive at all, the
cream is barely there. It should be mouth watering picture of a desert with lots and lots
of cream on top. Life's a dessert is a boring statement. If you are a creative team, you can
for sure come up with something new and fun!

Omung lassi.
Another product of olpers. The taste that make crazy. Lots of fun and make life
heathy. Its sales are too high. Every one like this product. Oplers make profit
with this product. Still people demands are high every day for this product.

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Comparison with other brands

The brand is positioned rather too narrowly towards SEC A. Nestls NesVita and Calcilock campaign
was closer to a normal Pakistani consumer. Secondly, there are certain boundaries and cultural values
that should be respected. Olwell ad is too much for me to digest and I have no options but to switch
the channel. Engro has over done it and to make things worse its not as clear and well communicated
as NesVita was.

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 Olpers has a very
strong impact on the sales of Olpers. People know ENGRO because of its well established reputation
in fertilization sector. Therefore, they hold a strong association in their minds for Olpers as well.
There are different nodes that connect ENGRO to Olpers in the customers minds. The ads for Olpers
do not show any link with ENGRO foods but the HR managers keep mentioning ENGRO in every press
release of Olpers that is how people have associated Olpers

Success of olpers
The sales figure for the first eight months of Olpers 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 Olpers. 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 persons
ability to recognize and recall a
brand under a given set of
product
categories
becomes
easier.
Olpers
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.
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Oplers packing
Although Olpers 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 Olpers,
can be distinguished from the competitors brands. Olpers 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. Olpers provides its customers with functional and experiential benefits.

Milk for bones

The functional benefits include healthy bones,
high calcium, good taste, while experiential
benefits are that every morning starts with
Olpers 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 a ttract customers enough to make them buy it, thus the brand attitude In this case helped the
brand to form the basis for customer behavior. Olpers has favorable, strong and unique brand
associations in customers minds.

Best quality
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 Olpers and that is ENGRO foods. Usually people thin Olpers as a sub brand of
ENGRO foods. Due to this reason customers perceive Olpers as a high quality brand that will come up
to their expectations.

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Unique image
Olpers 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, Olpers enjoys higher profit
margins and increased marketing communication effectiveness.

Distinctive name
Olpers 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

Credibility
Olpers has been developing marketing programs to enhance brand awareness initially. Due to
familiarity with ENGRO foods, Olpers did not have much difficulty in building the customer-based
brand equity. Thus ENGRO can also be seen as a secondary association for Olpers and one that has
strongly influences the positioning of Olpers. It has added to the credibility of Olpers.

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 Olpers. They assessed the leverage of secondary associations in this case by
comparing the companys characteristic with the characteristics of Olpers.

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. Olpers is concentrating on the emotional aspect in their ads
in order to focus on the core need of customers that can be satisfied. Olpers has also funded Womens

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exhibition in Karachi a few months ago and currently is sponsoring cricket World Cup 2007, and
further adding more value to the brand and managing customer-based brand equity.

Social Responsibility
Corporate Social Responsibility is at the heart of ENGROs work. We believe in working with all the
stakeholders to improve their quality of life, in a way that is both good for business and development. We
also believe in earning the trust of our stakeholders by acting responsibly within the communities that we
serve. To help achieve these goals, the company has been making sizeable contributions for various CSR
projects. ENGROs urea manufacturing site is located in Daharki district Ghotki. It operates in Daharki for
past 40 years now. Since the company has grown from this single manufacturing facility to a truly
diversified corporate entity, it owes a lot to Daharki. The companys commitment to this part of Sindh is
evident in its social development projects as the bulk of Companys contribution budget is spent in and
around Daharki. The company has interventions in number of areas like education, health, environment,
sports, and infrastructural improvements.

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Conclusions
Engro Foods is among the biggest and fastest growing conglomerates in Pakistan with a vision to
cater to local needs with products conforming to global standards.
Highly passionate about providing millions of people across the length and breadth of Pakistan and
beyond with the ultimate brand experience, our product portfolio comprises some of the country's
biggest and best selling brands
Engro Food is a quality conscious company and customer focus company. Customer is its first priority.
Engro launched only that product, that appeal customers and satisfy customers needs and wants.
Engro foods is also customer health conscious company. And their products fulfills also necessary
vitamins.
Price is calculated according to customer affordability and easily available in all over the country.
By using different types of promotion methods Engro creates the awareness in the public.

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