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“My mother taught me very early to believe I could achieve any

accomplishment I wanted to. The first to walk without braces.”


Wilma Rudolph
Date: November 23, 2009

Mr. fariq mukhtar,


Course Instructor,
Textile Institute of Pakistan (TIP),
Karachi.

Dear Sir,

SUBJECT: Report about Innovation in Tarang Milk

We are pleased to present you this report, due on November 23, 2009. The sole
purpose of this research is to understand marketing communication skills and also
understand how a manufacturing firm’s marketing department persuades the consumer to
buy their goods and services by Television commercial.
It has been usually observed that some commercial doest not delivers the
communication objective to the consumer. Our research was focused on the marketing
department activities and redeveloped the commercial according to communication
objected of the firm

We express our gratitude for accepting our proposal and giving us a chance to suggest a
improvement in commercial. We all have learned a lot from this project, which will
benefit us in our future studies as well.

Yours sincerely,
Farhad Ahmed Memon
Ahmed Khan
Khallil-ur-Rehman
Rizwan Fareed
ACKNOWLEDGEMENT

First of all, we all would like to thank Almighty Allah for giving us the opportunity to
successfully carry out this research project and helped us overcome various hurdles and
distractions.
On a personal note, we would like our parents and siblings to accept our deepest
gratitude for sharing our work – stress on equal front and more for the love and concern
they showed all along and their patience to put up with our tight work – schedules. We
dedicate our work to you all. Thank you, your contribution is highly appreciable and
valued.
Responsibility for all types of errors, mistakes and shortcomings belongs entirely
to us. And any sort of positive criticism will be accepted and all advices will be
gracefully acknowledged.
Table Of Content Page#

Company profile…………………………………………………………………………..
Engro Brands………………………………………………………………………
THEIR AFFILIATES…………………………………………………………….
Engro VALUES…………………………………………………………………..
Competitors……………………………………………………………………….
PRODUCT CATEGORY………………………………………………………………..
Tarang milk……………………………………………………………………….
Introduction………………………………………………………………………
Market segmentation……………………………………………………………………..
Demographic segmentation……………………………………………………….
Psychographic segmentation. …………………………………………………….
Behavioral segmentation …………………………………………………………
New Product Features: (Innovation) ……………………………………………………..
Importance of product innovation………………………………………………..
Pros………………………………………………………………………
Cons………………………………………………………………………
Advertisement……………………………………………………………………………
Impact of advertising…………………………………………………………….
Weaknesses In Tarang Milk Advertisement…………………………………….
Suggestion for betterment of advertisement…………………………………………
Social factors……………………………………………………………………………
Taste/Odor And Health…………………………………………………………………
High calcium low fat milk………………………………………………………………
Heat Resistant Packing…………………………………………………………………
Milk Categories…………………………………………………………………………
For Children’s…………………………………………………………………..
Teen Agers………………………………………………………………………
Old age…………………………………………………………………………
Positioning …………………………………………………………………………….
Threats …………………………………………………………………………………
Prices Comparison of Tarang and Other Milk………………………….……………..
Marketing Mix………………………………………………………………………….
Company profile
Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. which is one
of the most reputed enterprises in Pakistan with more than 40 years of diversified
business operations in the areas of fertilizer and chemicals. Engro Foods started its
business operations in March 2006 and with the successful launch of Olpers Milk,
Tarang, Olwell, and Olpers cream, it has established itself as a major player in the foods
business. With the ever expanding milk collection network and processing facilities, the
Supply Chain has geared them for the growing sales of their products. Engro Foods, a
wholly owned subsidiary had its first full year of operations in 2007. The Company
continued expanding with additions to brand portfolio, milk production and distribution
capacities.

The portfolio now includes four impressive brands; Olper's milk, Olper’s cream,
Olwell and Tarang. The company’s milk collection network now boasts over 700 village
milk collectors and 400 milk collection centers. Covering 2400 villages across Pakistan,
the activities of the Company touch the lives of almost 51,000 farmers.

An exciting new venture is the diversification of dairy portfolio into ice cream. Work has
commenced full throttle for detailed engineering and market study with a view to launch
of first ice cream in 2009. Also on EFL slate is the establishment of a dairy farm with
milking expected to start in second quarter 2009.

They believe that their recent successes will take them to their goals. To be one of the
biggest players in the food business. Engro’s aim is to dominate the food business, and to
achieve this they will settle for nothing less than the cream!
Engro Brands
• Olper

• Olper cream

• Tarang

• Olwell

THEIR AFFILIATES:
Engro VALUES:

• Integrity: We have an open disclosure policy and transparent processes. All


our business activities / transactions are carried out honestly and with fairness.

• People: Have passionate people with intelligent and firm approach towards
business. To facilitate these people we give them challenging opportunities,
training, fun loving environment, necessary resources and facilities. We publicly
recognize our talent.

• Innovation: Innovation is the way of life at EFL. It is valued, encouraged


and rewarded in all aspects of our operations.

• Consumer centric: Consumer is the reason for our existence as a


business.

Competitors:
External competitor
o Nestle milk pack
o Haleeb
o Every day
o Good milk
o Nirala
Internal competitor
• olper`s milk
• olper`s cream
• Olwell
PRODUCT CATEGORY
Tarang milk

Introduction

• Tarang, Milk whitener launched in August, 2007


• Sahiwal Plant commissioned, which will result in efficiencies in logistics cost and
increase capacity to 700k LPD
• Considering market opportunities, ECPL Board has approved additional
investment of Rs 3.4 billion for:
• expanding UHT capacity to 900K LPD
• expanding milk powder capacity to 70K KPD
• 1000 imported cows farm
• Total revenue in 2007 was Rs. 3.6bln (Rs. 1.5bln in 2006), and loss for the year
was Rs. 620mln (2006 loss of Rs. 428mln), which was as per plan.

Features of Product:

• Best Bioavailabe proteins


• Tea whitener
• Only source of lactose

Market segmentation
It is very tricky for any one company to engage in mass production, mass distribution and
mass promotion for its product. The details arise from the abundance 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.
Pakistan is an agricultural country. According to Ministry of Food, Agriculture
and livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry
contributes 49% to the agriculture value and 11% to the GDP. Annual production of milk
is 35.25 Billion liters in the country; But the Processed milk is only 4% of the total
production.

Like other countries Dairy is not a dedicated profession of the people, farmers is
associated with dairy and agriculture at the same time, Profitability for the farmers is very
less. Infrastructure is not developed, cooling tanks and other facilities are not available,
and the large part of milk production is wasted. There is a multi-hierarchal distribution
system of the milk; the farmers are not getting reward of their work. All these factors are
making this industry unattractive for the farmers and the industry is no developing up to
the mark.

Only 4% of the total milk production is processed and used in urban areas of the country.
According to Pakistan Dairy Development Authority

 Only 0.52 Billion liters UHT and 0.5 Billion liters


pasteurized milk is available in the country.
 In urban areas 4.7 Billion liters milk is provide by Gawalas.
 1.27 Billion liters processed milk is sold by the milk shops.
 There is a potential of about 5 billion liters of milk sold in
the urban areas.
 In urban areas people are more health and quality
conscious, the income level of urban population is also good so this
segment has potential for UHT and Pasteurized milk.

Tarang milk should make a segment for the market so that it will achieve the health
conscious young and a bit tasteful so that every one follow the Tarang milk the company
should make an ad to attracts young generation not to appeal to all the masses. It is for
the young experiences to get attracted by this ad and go for Tarang Milk
Demographic segmentation
Tarang milk should focus towards the youth, teenagers and young adults. The
brand is meant for all the users in higher upper or middle class families being positioned
as a brand for high income earners.

Psychographic segmentation
On the basis of psychographics, factors such as personality traits, lifestyles and
values, the marketers of Tarang Milk should have segmented the market more towards
healthy conscious trendy youngsters, expereincers who are ready to try out something
new. For example the ads for Tarang mostly show for the tea purpose so that Tarang ad
should be
Targeted on above factors and they should show something new.

Once this segment of customers was identified for Tarang the brand was positioned in the
minds of customers through various promotional strategies. Following are the
promotional strategies used by this brand to maintain its name in the market in
competition with other brands offering High Calcium Low Fat milk.A successful product
or service means nothing unless the benefit can be communicated clearly to the target
market.

Behavioral segmentation

Tarang products should 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 Tarang milk , every morning they should drink Tarang milk and everyday
they should feed their pets with Tarang 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 Tarang brand and shifting loyal and switchers to convert into
hard core loyal as well.

New Product Features: (Innovation)


Different consumers have different needs, and even more important, that these needs
change over time. To stay current with consumers’ needs, it is necessary to innovate.
“Without innovation, there can be no growth,”

Importance of product innovation:


Oftentimes, a company will improve or change their existing products. There are
many reasons for doing this. It can make a substantial difference in the success of your
company and even take it in a whole new direction. However, it can also spell disaster if
not done correctly. How do you improve or change existing products?
Change or improvement can come about in many ways. While it may seem like only
good can come from improving, adding to, or changing different products around, this is
not always the case. It must be done skillfully, or else other problems can arise.

The following are some things to keep in mind when considering whether or not to
improve or change your existing product line.

Pros
There are a number of pros to changing or improving your existing product line,
including:

• Keep up with the competition. If you provide services or products in an industry


that is constantly changing, it's important to stay aware of the latest in industry
trends so you can continue to be competitive. Let's say for example you own a
hair product supply store that sells flat irons for straightening hair. More and
more places are selling ceramic irons as hair experts say they are better for hair.
In this case, it would be advantageous to update the products to reflect the latest
in technology.
• Increase sales. The main reason people will change and improve their existing
product line is to increase their sales and ultimately, their revenue. By adding to
the product line, you can take your company in a new direction by increasing
sales. Let's take the example of the tutoring business. While you may have a good
number of clients, they are all math students. Just as many students will need
extra help in other disciplines. Expanding the existing service will only result in
increased profits.

Cons
Just as there are benefits to changing or improving your product line, there are cons as
well. Some of those include

• Reduced sales of older items. If you change or improve your product, you may
consequently be reducing the sales of your older items. This is especially true for
products that are replacing older, outdated items (such as the flat irons mentioned
earlier.) For this reason, it's important that your timing is right; if no one is ready
for the technology, improving or changing your product won't help.
• Poor marketing. If you advertise that your product has changed, it must be done
skillfully. People were buying your product before because they liked it; if you
change it, it may not always be for the better. Make sure you do enough market
research to know whether the change or improvement in the product would
actually be beneficial.

Changing or improving your product line can result in increased success and profits for
your company. However, if not done correctly, it can also be a costly mistake. In order
for you have maximum results, it's important to first do careful market research and
implement changes in small stages.
Advertisement:
As an instrument of marketing, advertising was an effective through multiple
sales people reaching many people at one time. Then it had used the media as a tool. The
American marketing association defines advertising as “any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified sponsor”.
Advertising doesn’t change the physical properties of the product but than also it is the
most compulsory expense for creating demand for the product.

Impact of advertising
Advertising plays an important role in today’s competitive business world. It
provides benefits to Manufacturers, Retailers, Customers, Salesman and society as well.
Mostly the advertisement use for the following purpose.

 Introduces a New Product:


 Creates Demand for Product:
 Expand Market:
 Assists Personal Selling:
 Building Brand Image:
 Reduces the cost of goods:
 Persuades prospects:
 Employment:

Weaknesses In Tarang Milk Advertisement:

• Their advertisement not as successful as they thought they would be in some


market.

• Some of their product were positioned as too scientific, and consumers didn’t
quite understand that is it milk or tea.

• Tarang Milk is short in market due to poor marketing.

• Tarang has been newly serving the Pakistani consumers and they are fail to built a
strong brand image due to its ads, quality products and its marketing.

• Tarang Milk Company doesn’t spend its lot of money on correct and ethical
advertising or other promotion program.
Suggestion for betterment of advertisement:

• Firstly they have to do copy test of their ads so they will understand that either
consumer understand the ads or not or to determine if intended message is
communicative.

• They should focus on the feature of their product and should not involve too much
dance and music, as they were did in their ads. They have showed that (tarang hi
tarang h chai ki ye umang hey) by this peoples are not understanding that either
its ad of tea or milk. So they have to focus on their product and its qualities rather
then the dance and music.

• They should involve doctors in their ads in order to build strong image in the
mind of customer, with the help of doctors they can tell properties of their product
in a better way.

• Through these ways they can make their ads attractive and focusable

Social factors:
Social factors include the demographic and culture aspect of the external
micro environment. These factors affect customer needs and the size of potential
market. People mostly prefer fresh and open milk & rely less on processing milk
because they understand processing milk companies add chemical in milk during
process. So TARANG milk should have try to change this trend through
advertisement and awareness programmes and must mention that in tarang milk
packing.

Taste/Odor And Health:


According to research the top reasons for drinking milk are based on health benefits
and taste/odor.
• With regard to health, over half of respondents say they drink milk for the
calcium and vitamin D, and because it is healthy and nutritious. Likewise, over
half of the respondents rate calcium, vitamin D, protein, vitamin A, fat content
and potassium as being important or very important nutritional aspects of milk.

• Concerning taste, over half of respondents say milk satisfies them and it simply
tastes good.” so many non-dairy companies are now selling milk—for its taste,
nutrition and satisfaction.

• The dairy industry no longer owns the milk franchise, but it is not too late to
capitalize on the value-added milk concept.

So tarang milk manufacturer must put these properties in their milk and must show that
properties in advertisement and on its packing so that the consumers will get attraction
towards the product and it will be competitive in the market.

High calcium low fat milk:


High Calcium is required for good teeth, strong bones and for the proper function
of nerves, muscles, kidneys, and the heart. Not having enough calcium in the diet is one
of many factors associated with an increased risk of osteoporosis, a disease that speeds up
the process of the natural loss of calcium in the bones. This causes the bones to become
weak and fragile, leading to loss of height, curved spines, and bone fractures, especially
in women. Dairy products especially milk is the most common source of calcium for
people. However milk is high in saturated fat and cholesterol, as well as calories.
Therefore such high calcium low fat milk should be offered by engro companies for the
health conscious people, so as to remain healthy as well as fit.
Heat Resistant Packing:
The time is now for milk processors to invest in product, process, package and
promotion innovations—just as other beverage manufacturers are doing. Milk
consumption can increase if the dairy industry also innovates in these areas.

Tarang milk producers should develop their packing in order to make it heat resistant. As
you can sea during summer season there is a high temperature in certain areas of Pakistan
so therefore tarang milk manufacture should try to make heat resistant packing in which
the milk can be stored for a long time. This factor should also be promote in
advertisement in order to build a better image in the mind of consumer.

Milk Categories:

They should make a categories of their milk like:


1- children’s
2- teen age
3- old age

For Children’s:

Children with low body stores of vitamin A who have measles may
require vitamin A supplementation. So they can add Vitamin A properties and
other properties which are related or beneficial for the kids and they should
properly advertise these benefits.

Teen Agers:
For teen agers they should add high calcium, proteins and vitamins so It
should be a thirst quencher; it is hydrating; and it is refreshing.

Old age:
For old age peoples they should add low fat/calories because it may create
heart diseases
Positioning
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
Tarang milk have decided to create its own unique image and then strengthen the position
in the customers’ minds. They should have done this by taking a number of following
steps:

• Packaging of Tarang milk in red color is quite different and distinctive from the
typical green and blue packing used by other competitors.

• Tarang milk is positioned as good for a distinctive use or application. In this case
the Tarang milk can be used for all purpose like drinking, tea etc. It can be said
that all the different stages have been performed by the marketers with extreme
care and research.

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 Tarang milk 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 Tarang milk 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 Tarang milk. For
example, lose/organic milk is still cheaper than packaged milk and that is also one
factor that people still prefer to buy lose/organic milk.

Prices Comparison of Tarang and Other Milk:


Name ml Rs

Olper`s milk 250 13


Olper`s milk 500 25
Olper`s milk 1000 44
Olper`s milk 15oo 64
Olper`s cream 250 32
Tarang 250 10
Nestle Milk 1000 58

The Marketing Mix - Activity


The marketing mix is the combination of elements that frame the marketing strategy for
a company in relation to their products and services, in order to help them achieve their
marketing objectives. Traditionally, the marketing mix has focussed on four elements:

• Price

• Product

• Promotion

• Place
Price:
• Unit price of tarang milk is Rs-10 (250ml)
• This product is cheaper then the others products like nestle (Rs-15 per 250ml),
Good Milk…etc so peoples will prefer tarang milk because our half of population
is under poverty line so they will get attraction towards tarang milk.

Set prices
We will set prices of our own because Tarang is newly interred in the market.

Price discounts
Not to the final consumers but it can be considered for the he organizational
consumers like to PIA, Army…etc

Product:
• No matter how effective the promotion and packaging, a firm will find it very
difficult to market a product which fails to satisfy a consumer need.
• In new product we will change the taste and odor of milk and we will reduce fats
and increase proteins. And we will make categories of tarang milk.

Launching:
We will launch in January 2010.

Specific Features:
It is tea whitener that makes it different from other products.

Product manufacturing
The entire production of the Tarang will made locally

Promotion:
Promotion involves disseminating information about a product, product line,
brand, or company. It is one of the four key aspects of the marketing mix.

Channels adoption for promotion:


TV, News papers, magazines and doctors.

Advertisement budget:
It will be planned from the start of financial year. It will be kept secret.
We will invest 5% of our budget on advertisement.
Nature of marketing
The product will market aggressively in the market

Place:
Marketing Mix is Place. Place is also known as channel, distribution, or intermediary.
It is the mechanism through which goods and/or services are moved from the
manufacturer/ service provider to the user or consumer.

Outlets of product:
These will locate all over in Pakistan regardless of big and small cities

Insurance policies
Insurance policies will be maintain and they will highly confidential

Warehousing facilitation
Tarang will have its own warehouses for the storage of products as well as
it will also hired some warehouses