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Pakistan is the fifth largest producer of milk with industry volume comprising
different dairy products reached at US$26 billion in urban and rural areas on
the increasing population and domestic local consumption, a research report
said.
Market Size & Growth: According to Tetra Pak index the consumption of milk
in 2008 was reached at 258 billion liters & was projected to be reached at
282 billion liters in 2012. The total growth of processed and packaged milk
reached at 58%.
Number of Rivals: Currently there are more than 25 dairy processing plants
but Nestle is one of the biggest rivals/competitor for Engro.
Scope of Competitive Rivalry: Nestle and Engro is the biggest rival and both
of these firms are currently competing at National level.
Product Innovation: In the processed milk industry packaging and skimmed
milk can be consider as the product innovation.
Supply/Demand Conditions:
integrations is required.
Q3: What are the drivers of change in the processed and packaged
milk industry of Pakistan? How are these drivers likely to affect the
industry in the future?
New research from Tetra Pak forecasts that flavored milk consumption will
grow at more than double the rate of white milk globally between 2012 and
2015. Consumers are increasingly turning to tasty, nutritious and
conveniently packaged flavored milk as an alternative to other beverages,
creating opportunities for dairies to improve profitability.
Pakistan Dairy Development Company registered as a limited company,
generally known as Dairy Pakistan
it is a platform for representation of
milkman who keep animals and supply fresh milk directly to urban families
usually on a contract. This platform consists of representation and policy
support from the Government, Industry and the farmer groups whereby core
leadership is provided by the private sector by virtue of their expertise and
policy support from the Government, Industry and the farmer groups
whereby core leadership is provided by the private sector by virtue of their
expertise
The White Revolution It envisions the dairy sector as serving an engine of
economic growth for the country and taking the responsibility to drive the
development of the socio-economic landscape of rural Pakistan.
Economy of scale is so large that rivals firms need to market their products in
many cities to gain enough volume to cut down the cost.
Product Innovation is necessary so that buyers get more attract towards the
product in terms of packaging and at some extent the thickness of milk.
Market Innovation: To aware the buyer about the process and the
technologies which are used for processed milk.
Changes In cost is necessary to compete with the rivals cause if the rivals
apply the backward or vertical integration it will affect the cost, it will change
the dynamics of the country.
Weight
Rating
Social responsibility
0.1
0.3
4-a
Profitability
0.15
0.6
4-b
Growth rate
0.2
0.8
4-c
Demand in domestic
and international
markets
Relationship with
Vertical Market
Threats
0.1
0.4
4-d
0.05
0.05
4-e
0.1
0.4
4-f
0.15
0.6
4-g
0.1
0.1
4-h
0.05
0.15
4-i
Substitute product
Competition from
Others in Market
Position of Supporting
Brand Products
The White Revolution
Total Weighted
Score
Weighted
Score
3.4
Comment
s
Sources:
www.tetrapack.com
www.engrofoods.com