Marketing of Olper’s milk and Nestle

Milkpak

Submitted by:
Khadija Haider 210
Seemab Shoaib 131
 Contents
Engro Foods’ History
Vision and Core Values
Segmenting and Targeting
Positioning the brand
SWOT Analysis
PEST Analysis
4 P’s
Comparison with Nestle Milkpak
 Engro Foods’ History
•Engro Foods (Pvt.) Limited
(EFL) was been established in
2005 as part of a diversification
process at the Engro Group.
•ENGRO wanted to setup a new
fertilization plant but due to
certain constraints from the
government wasn’t able to do so.
Therefore, the organization
decided to move into a new
market.
•Olper’s Milk, company’s first
brand was launched in March
2006 in 20 cities of the country
simultaneously
 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."
 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
 Segmenting and Targeting

The milk sector shows a

market that has
homogeneous preferences
that is the consumers have
similar preferences.
• They want milk to be white.
• It should be carefully
processed
• It should be good for health
and bones.
•Demographic Segmentation
Olper’s products are not bounded to any particular age,
gender or lifecycle stage. The brand is meant for all the
users in higher upper or middle class families.
• Psychographic Segmentation
Olper’s have segmented the market more towards
achievers who are goal-oriented and focused on their
careers, and those who are seeking variety in the milk
sector.
• Behavioral Segmentation
Olper’s products have been segmented on the basis of
benefits that consumers seek in the milk. People look
for a brand that can be used for all purposes from
drinking to, tea whiteners as well to feed the animals.
 Positioning the brand

•Packaging of Olper’s Products color

are quite different and distinctive .
• The brand has been positioned as
an all purpose milk especially those
who live life to the fullest, hence its
tag line, “jo dil khol kay jeetey hain
unheen kay liyay hai Olper’s”
• They used the benefit positioning
for Olwell.
• Olpers’s cream is positioned as
good for a specific use or
application.
 Strengths
•Engro’s back
• Positive relations with farmers.
• Positive response from customers.
• Strong customer or product
research.
• Third generation plant.

• Weaknesses
Opportunities
•Increased government •Olwell TVC.
funding. SWOT • Packaging.
• Increased consumption of • Low quality milk.
processed milk.
Analysis
• Awareness. • Milk collection and
• Third largest producer of distribution costs.
milk.

Threats
•Competition
• Perceptions and price
differentials.
 PEST Analysis
Economic Factors
• Inflation Rate
• Competition is Political Factors
increasing with the unstable political
entrance of new conditions strikes and
domestic players road blocking creates
• Major textiles problem for delivery
groups are also on time
diversifying into
dairy and livestock
business.
 Technological
Factors
 
• Milk yields per animal
Socio-Cultural
have been increased
Factors through scientific
• The perception that feeding & breeding.
only loose milk is • In year 2005, the
fresh. There is only Ministry of Industries
4% penetration of and Production
established Dairy
packaged milk.
Pakistan Company on
the lines and model of
Dairy Australia.
Products
Olper’s Milk

• Launched on 20 March
2006.
• UHT (Ultra heat treated)
milk with 3.5 % fat and
8.9 % solid non-fats.
• available in easy-to-
open, 6-layered Tetra Pak
Brick Aseptic red
packaging.
• 3 months shelf life.
 Placement and Distribution
• Engro Foods Limited has its own 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 EFL’s strong
relationship building and special discounts to
retail outlets, Olper’s has gained a proper shelf
placement in the presence of competitors like
Nestle and Haleeb .
 Price

EFL is pursuing the competitive pricing strategy

for its products. In competitive pricing the price
of the product is determined considering the
price of major competitors like Nestle, Haleeb
etc.
 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.
Ramadan Campaign
TVC’S
 Competitors

• Nestle Milkpak
• Haleeb
MILK PACK
38% 40% OLPERS

OTHER

22%
 Brief History
Nestle Milkpak was first introduced in the
market in 1981 and originated the
packaged milk category by which they
pioneered Tetra pack milk in Pakistan.
However Milkpak’s “Milk packs” were very
well received and the brand soon received
and the brand soon became synonymous
with quality milk. Its first real competition
came in the form of Haleeb.
 Marketing Strategies
Nestle is pursuing growth strategy. They have
invested $10 billion at Kabirwala Plant and they are
planning to invest $38 billion in the milk business.
 Segmentation and Targeting
Segmentation Targeting
 Geographical  Urban areas of the
Target Market is country.
major populated  Upper and Middle
cities of Pakistan Income Class
 Demographic
for the users in
higher upper or
middle class families
 Positioning and Differentiation
Positioning Differentiation
Nestle Milkpak has
adopted the functional “Addition of IRON and
positioning strategy Vitamin A and C”
like:
“Khalis He Sub Kuch Hai”
“Wohi Qudarti Maza”
“Jaan Banao”
Strengths Weaknesses
 Does not give milk
Strong brand image. on credit.
 Quality Product  Spend less on
 Solid financial position. advertising.
 High price.
 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
 Threats
Opportunities
 World’s 3th largest industry.  Low quality milk
 Introduce value- added  Poor profitability for
products. farmers.
 Innovations in product  Lack of contacts for
development, packaging and farmers to market
presentation. mechanism.
 Opportunities for investors  Lack of education among
to invest in Pakistan. the farmers.
 Increasing employment for  Difficult to meet future
the people. consumer demand.
 Load shedding.
 Political Factors
The company policies are
affected and its budget is
also affected. Nestle paid
15% sales tax ad 18%
excise duty when they
import chillers from other
countries.
PEST
Social Factors
People mostly prefer fresh
and open milk and rely less
on processing milk because
they think that milk
companies add chemicals
in milk during process.
Economic Factors
They earn lot of profit and
uses its profit in social
welfare through making
schools etc. They also give
job opportunities to the
people of rural areas through
giving them animals on
interest free installments.
Technological Factors
Technological variables
have positive effect on the
business. Nestle uses
latest technology and high
quality machinery in the
production of milk.
 Product
 Quality product
 Product style and logo
 Product life cycle.

Price
Competition based
pricing
 Placement and distribution
Milkpak is not sold directly to
consumers. It uses indirect channel s for
distribution.
Color of the brand is green and white,
which are the colors of Pakistan’s flag.

Promotion
Advertisement
Public relations
Nestle has been ruling the milk
industry for nearly 2 decades. It was
not spending much on
advertisement and promotional
programs. Nestle Milkpak had been
like a sleeping giant. Evidently
Olper’s has woken up the
competition. Milkpak has responded
with campaigns of its own to
reaffirm the positive equity of its
brand,
 Branding experts could not
imagine how Olper’s could
distance itself from its parent
company’s incredibly
unappetizing, chemical-laden, and
non-edible roots. Yet, by the end of
2008 the brand has a market
share of close to 22% second only
to milkpak(40%).
 Recommendations for Olper’s and
Milkpak
•The immense competition is going in
the market so Nestle Milkpak should
penetrate more and more in the market.
• Only 4 % milk is being processed and
96% people are using loose milk so •Olwell's advertising must
Nestle Milkpak has the opportunity to conform to local values.
capture a large share of the market •PR Activities; mother’s day
through more creative advertising and special sponsorships.
other promotional activities.
•Nestle Milkpak should invest more on •Advertising at the right place;
research and development because Olwell’s TVC can run during yoga
customers using loose milk are getting a shows in the morning.
lot of contaminations especially in urban • Offer discounts in Ramadan.
areas so Nestle Milkpak can provide
awareness to people in this aspect.
Thank you