marketing olpers and milkpak

7/29/2019 Marketing Olpers and Milkpak

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Marketing of Olpers milk and Nestle

Milkpak

Submitted by:Khadija Haider 210Seemab Shoaib 131


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Contentsy Engro Foods History

y Vision and Core Values

y Segmenting and Targeting

y Positioning the brand

y SWOT Analysis

y PEST Analysis

y

4 Psy Comparison with Nestle Milkpak


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Engro Foods HistoryEngro Foods (Pvt.) Limited(EFL) was been established in2005 as part of a diversificationprocess at the Engro Group.

ENGRO wanted to setup a newfertilization plant but due tocertain constraints from thegovernment wasnt able to do so.Therefore, the organizationdecided to move into a newmarket.

Olpers Milk, companys firstbrand was launched in March2006 in 20 cities of the countrysimultaneously


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Our vision is to become a fast expanding megafoods company. To achieve our vision, the

company will initially focus on dairy byinvesting a substantial amount in plant, milkcollection capability and marketing. We aremaking concrete efforts to expand in and

beyond Pakistan; through strategicinternational alliances, to eventually becomeglobal."

Vision


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Core Values

Leadership

Innovation Diversity and International Focus Quality and continuous Improvement Candid and Open Competition Individual growth and development

Enthusiastic pursuit of profit Ethics and integrity Safety, Health and Environment


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Segmenting and Targeting

The milk sector shows amarket that has

homogeneous preferencesthat is the consumers havesimilar preferences. They want milk to be white. It should be carefullyprocessed It should be good for healthand bones.


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Demographic Segmentation

Olpers products are not bounded to any particular age,gender or lifecycle stage. The brand is meant for all theusers in higher upper or middle class families.

Psychographic Segmentation

Olpers have segmented the market more towards

achievers who are goal-oriented and focused on theircareers, and those who are seeking variety in the milksector.

Behavioral Segmentation

Olpers products have been segmented on the basis ofbenefits that consumers seek in the milk. People lookfor a brand that can be used for all purposes fromdrinking to, tea whiteners as well to feed the animals.


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Positioning the brand

Packaging of Olpers Products colorare quite different and distinctive .

The brand has been positioned asan all purpose milk especially thosewho live life to the fullest, hence itstag line, jo dil khol kay jeetey hainunheen kay liyay hai Olpers

They used the benefit positioning

for Olwell. Olperss cream is positioned asgood for a specific use orapplication.


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SWOTAnalysis

StrengthsEngros back Positive relations with farmers. Positive response from customers. Strong customer or product

research. Third generation plant.

WeaknessesOlwell TVC.

Packaging. Low quality milk.

Milk collection anddistribution costs.

ThreatsCompetition

Perceptions and pricedifferentials.

OpportunitiesIncreased government

funding. Increased consumption ofprocessed milk. Awareness. Third largest producer ofmilk.


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PEST AnalysisEconomic Factors

Inflation Rate Competition isincreasing with theentrance of newdomestic players Major textilesgroups are alsodiversifying intodairy and livestockbusiness.

Political Factorsunstable politicalconditions strikes androad blocking createsproblem for delivery

on time


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Technological

Factors

Milk yields per animalhave been increasedthrough scientific

feeding & breeding. In year 2005, theMinistry of Industriesand Productionestablished Dairy

Pakistan Company onthe lines and model ofDairy Australia.

Socio-Cultural

Factors

The perception that

only loose milk isfresh. There is only4% penetration of

packaged milk.


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Products


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Olpers Milk

Launched on 20 March2006. UHT (Ultra heat treated)milk with 3.5 % fat and8.9 % solid non-fats. available in easy-to-

open, 6-layered Tetra PakBrick Aseptic redpackaging. 3 months shelf life.


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Placement and Distribution

Engro Foods Limited has its own distributionnetwork. EFL has divided Pakistan into five

regions for milk distribution namely: Karachi,Lahore, Islamabad, Peshawar and Multan. Due to an appealing color scheme, which standsout in the clutter and thanks to the EFLs strong

relationship building and special discounts toretail outlets, Olpers has gained a proper shelfplacement in the presence of competitors likeNestle and Haleeb .


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Price

EFL is pursuing the competitive pricing strategyfor its products. In competitive pricing the priceof the product is determined considering theprice of major competitors like Nestle, Haleeb

etc.


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Promotion and Advertisement

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

branding activities.


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Ramadan Campaign


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TVCS


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Competitors

estle il pa alee

22

38

MILKPACK

OLPERS

OTHER


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Brief HistoryNestle Milkpak was first introduced in themarket in 1981 and originated thepackaged milk category by which they

pioneered Tetra pack milk in Pakistan.However Milkpaks Milk packs werevery well received and the brand soonreceived and the brand soon became

synonymous with quality milk. Its firstreal competition came in the form ofHaleeb.


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Marketing Strategies

Nestle is pursuing growth strategy. They haveinvested $10 billion at Kabirwala Plant and they areplanning to invest $38 billion in the milk business.


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Segmentation and TargetingSegmentation

Geographical

Target Market ismajor populatedcities of Pakistan

Demographic

for the users inhigher upper ormiddle class families

Targeting

Urban areas of the

country. Upper and Middle

Income Class


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Positioning and DifferentiationPositioning

Nestle Milkpak hasadopted the functionalpositioning strategylike:

Khalis He Sub Kuch Hai

Wohi Qudarti Maza

Jaan Banao

Differentiation

Addition of IRON andVitamin A and C


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StrengthsStrong brand image. Quality Product Solid financial position.

Conduct more training programs. Try to collect fresh and clean milk.Make shops for farmers. Strong supply chain networks.

Qualified workforce. Commitment to high quality Focus on research and development

Weaknesses Does not give milkon credit. Spend less onadvertising.High price.


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OpportunitiesWorlds 3th largest industry. Introduce value- addedproducts.

Innovations in productdevelopment, packaging andpresentation. Opportunities for investorsto invest in Pakistan. Increasing employment for

the people.

Threats

Low quality milk

Poor profitability forfarmers.

Lack of contacts forfarmers to market mechanism. Lack of education amongthe farmers. Difficult to meet future

consumer demand. Load shedding.


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Political Factors

The company policies areaffected and its budget isalso affected. Nestle paid

15% sales tax ad 18%excise duty when they

import chillers from othercountries.

Economic FactorsThey earn lot of profit and

uses its profit in social

welfare through makingschools etc. They also give

job opportunities to thepeople of rural areas through

giving them animals oninterest free installments.

Social Factors

People mostly prefer fresh

and open milk and rely lesson processing milk because

they think that milkcompanies add chemicals

in milk during process.

Technological Factors

Technological variables

have positive effect on thebusiness. Nestle useslatest technology and highquality machinery in the

production of milk.

PEST


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ProductQuality product Product style and logo Product life cycle.

PriceCompetition based

pricing


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Placement and distribution

Milkpak is not sold directly toconsumers. It uses indirect channel s fordistribution.Color of the brand is green andwhite, which are the colors of Pakistans

flag.

Promotion

AdvertisementPublic relations


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Nestle has been ruling the milkindustry for nearly 2 decades. It wasnot spending much onadvertisement and promotionalprograms. Nestle Milkpak had been

like a sleeping giant. EvidentlyOlpers has woken up thecompetition. Milkpak has respondedwith campaigns of its own toreaffirm the positive equity of its

brand,


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Branding experts could notimagine how Olpers could

distance itself from its parent

companys incrediblyunappetizing, chemical-laden, andnon-edible roots. Yet, by the end of

2008 the brand has a marketshare of close to 22% second only

to milkpak(40%).


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Recommendations for Olpers andMilkpak

The immense competition is going inthe market so Nestle Milkpak shouldpenetrate more and more in the market.

Only 4 % milk is being processed and96% people are using loose milk so

Nestle Milkpak has the opportunity tocapture a large share of the marketthrough more creative advertising andother promotional activities.

Nestle Milkpak should invest more onresearch and development because

customers using loose milk are getting alot of contaminations especially in urbanareas so Nestle Milkpak can provideawareness to people in this aspect.

Olwell's advertising must

conform to local values.PR Activities; mothers dayspecial sponsorships.Advertising at the right place;Olwells TVC can run during yoga

shows in the morning. Offer discounts in Ramadan.


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Thank you

marketing olpers and milkpak

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