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OMORE INTERVIEW QUESTIONNAIRE Engro Foods (Pvt.

) Limited (EFL) has been established in 2005 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. Q1: Why Engro foods thought of diversifying in the ice-cream business particularly? Ans: Because, Walls alone enjoyed 78% of the market share in the ice-cream industry and Engro Foods have the strategy of Challenge The Child so they decided to diversify in the cold chain business as it has better future prospects and growth potential. Moreover; the contribution margin ration of ice-cream is also high (which means for e.g. CM ratio of 40%. This means that for each dollar increase in sales, total contribution margin will increase by 40 paisas (Re.1 sales CM ratio of 40%). Net operating income will also increase by 40 paisas, assuming that fixed cost do not change. Q2: What are the challenges faced by omore? Ans: There are several challenges like competitors like Walls; apart from that there are other challenges like shortage and soaring prices of electricity, 25% market share of omore. Q3: Why was omore first introduced in Lahore/Punjab? Why not in Karachi? Ans: Omore started its sales from the city of Lahore because of the culturally inheritor of celebrator of festival of colors i.e. The Spring Festival. Moreover; the business potential in the cities of Punjab was more and the operational cost was lower in Punjab because the cities are closely located. Q4: Why omore was launched in the month of Feburary when the demand for ice-cream culminates in summer season? Ans: We launched the brand in spring because it required a lot of time to deploy thousands of freezers that would needed throughout the city and we wanted to make sure that stores were well stocked and there wont be any shortage in the peak at least 1-2

OMORE INTERVIEW QUESTIONNAIRE months were required, we completed that process in 2 months so that we can reap the benefit in the summer. Moreover; Spring Festival celebration was attached with the brand. Q5: Tell us something about the ice-cream business? Ans: The ice-cream business is divided into 3 divisions: 1. General Trade (GT) section: This section contributes 63% of sales. 2. Stop Point depoo (SPD) section: This section contributes 22% of sales. 3. Out of Home (OH) section: This section includes hotels, clubs, malls contribute the rest of sales. There are three types of packaging: 1. Impulse category includes sticks, cones, cups. 2. Multi serving category includes tubs, family packs. 3. Bucket of 9.4 liter use in hotels etc. Q6: Tell us something about your ice-cream? Ans: Omore started off with 24 different packs and flavors that attract kids and adults from all walks of life. The main distinguishing feature of omore ice-cream is the richness due to increase of milk content that was the main idea, keeping in view the taste of Pakistanis. Moreover; if there is any product that is not generating profit or not getting sold ,we reject that product and introduce a new product. Q7: Which of your products is most lucrative? Ans: Mostly cones are more profitable then others both in terms of volume as well as in contribution margin ratio. Q8: What is the pricing strategy of omore? Ans: Omore tries to remain competitive by providing low and similar prices as that of competitors.

OMORE INTERVIEW QUESTIONNAIRE Q9: How Omore is able to provide approximately same prices as that of Walls when their products are higher in milk content? Ans: Basically we are able to provide same prices because we reduce the quantity of icecreams a little bit. Q10: What is your distribution/placement strategy? Ans: Omore focuses on Impulse triangle (cash counter, entry, ice-cream freezer) for placement of its products. There are three models across Pakistan for distribution: 1. Cold storage and van (this is acquired by third party): It generates lowest return on investment.( ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better.) 2. Omores own cold storage and van at Port Qasim that supplies to suppliers. 3. Omore has hired disrtibutors in some areas to whom the company give some amount for investment. It generates highest return on investment around 60 million. Q11: Tell us about your plant and facility? Ans: We have two factories one at Sahiwal (Punjab) and other at Sukkur (Sindh). We have separate equipment of every product. Our cold storage facility is located at Port Qasim and we have two distributors in Karachi. In Karachi we operate through agility warehouses whereas in Lahore direct distribution is carried out. Q12: What about the promotion strategy of Omore? Ans: We launched the brand first in Lahore because of lager target market and we advertise heavily before launching the product in Karachi. By the end of March, every eye of Lahore was attracted towards the catchy decoration of Lahore done by Omore. We Believe in the fact that advertisement is not an expense, its an investment. Advertising campaign of Omore includes: 1) Streamers

OMORE INTERVIEW QUESTIONNAIRE 2) Decoration of Lahore in collaboration with PHA 3) TV Ads 4) Sponsoring Cooking Shows 5) TV Bloopers, Art of Happiness 6) Search planes Confetti 7) Ice-creams were shown in several TV serials 8) Mobile publicity Mr. Bean Bus concept was a hit. Omore Frooze has launched a new campaign "Omore & Mr Bean London Jaaney Ka Scene" in the summer for Kids.

Q13: Is there any mechanism to communicate the complaints of street hawkers who sold the ice-creams at higher prices? Ans: Omore pays commission of Rs. 80 for every RS.1000 sales to street hawkers and if they are selling at higher prices consumers can complain on our contact number Engro Foods Taaluq or show the retail price behind the packaging. Q14: What are the future goals of the company? Ans: We are looking forward to launch diet ice-creams. We have the target to achieve a market share of at least 50% in the near future. We have the plan to sponsor Olympics in 2020. Company is also planning to diversify with an acquisition of Al Safa a fast growing and established Halal meat brand Engro Foods is now venturing into North American market starting from Halal Foods category. The new organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to aggressively grow the business in this market.

OMORE INTERVIEW QUESTIONNAIRE

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