Executive Summary

The repot at hand provides useful insight about Engro

Pakistan Ltd, a private fertilizer firm that keeps about 21 %
of market share in the milk food industry Pakistan.
Established in 2005, a 100% owned subsidiary –First
investment of dairy plant Processed milk market is growing
at approx. 20% per annum Olper’s achieved peak market
shares of 12.3% within 6 months of launch Other products
launched –Olper’s Cream, OLwell –High Calcium Low Fat
Milk (Premium Brand) Plans to expand product portfolio Milk
processing capacity to increase by 200% to 200 million
liters annually Will become the only company in Pakistan
covering the entire milk catchments area Already has the
second largest chilled milk collection system in the country
Distribution network to double from 58 towns to 119 towns
by the end of 2007JV with global food major in advanced
stage of negotiation
Forces in the external environment that affect company’s
performance are, political, economic, social and
technological whereas company-specific external forces are
Major Players in the food Industry, which are ten in number;
Nestle being the leader with 41 % market share. Typical
packed milk consumers are the children. Therefore,
Engrofoods has a large number of consumers throughout the
country.
After the environmental scan, situational analysis ie.SWOT
analysis of the company has also been done. Company’s
expansion plans marketing mix are also discussed. Finally,
certain recommendations are also given at the end of the
report.

1
Introduction to Engro Pakistan:

Engro Chemical Pakistan Limited is the second largest

producer of Urea fertilizer in Pakistan. The company was
incorporated in 1965 and was formerly Exxon Chemical
Pakistan Limited until 1991, when Exxon decided to divest
their fertilizer business on a global basis and sold off its
equity of 75% shares in existent company. The Employees
of Engro, in partnership with leading international and local
financial institutions bought out Exxon’s equity and the
company was renamed as Engro Chemical Pakistan Limited.
Engro is a public limited company listed on the Stock
Exchanges of Karachi, Lahore and Islamabad.
The principal activity of the Company is manufacturing,
purchasing and marketing of fertilizers. The Company is also
involved in the production and marketing of seeds and has
invested in joint ventures engaged in chemical related
activities. As part of its diversification strategy, controlling
interest was acquired in a company offering industrial
solutions in automation and control. A new milk plant has
been established at Sukkur the milk is branded as Olpers.

Mission Statement:
Engro is progressing day by day because they have a vision
and mission the keeps the motivated and keeps them going.
Their mission as they describe as:

“Our mission is two fold, to help farmers maximize their farm produce by providing
quality plant nutrients and technical services upon which they can depend. To create
wealth by building new businesses based on company and country strengths in
petrochemicals, information technology, infrastructure, food and other agriculture
sectors.”

2
And further describing the adoption fashion they say,” In
pursuing the mission we shall at all times be guided in our
conduct and decision making by our core values.”

Vision and Core Values of Engro:

Engro’s vision is
“To be the premier Pakistani enterprise with a global reach, passionately pursuing
value creation for all stakeholders”.

A Diversified Conglomerate.

Fertilizer Business
Agriculture accounts for 25% of GDP and 45% of
employment in Pakistan Second largest Urea producer of
Pakistan .Capacity975 KT/A Market share20% Second
highest phosphates sales (~400KT/A) –Market Share 23%
ECPL’s Margins are by far the best in the industry. Zarkhez
(NPK) Market leader -Capacity 160 KT/A –Market Share 95%
Urea shortage expected to grow to 1.2 million tons/annum
by 2010. World’s largest single-train Urea plant of 1.3
million tons being setup at a cost of US$ 950 million. On
commencement of operations in mid 2010, cash fixed costs
of the new plant will be a third of the existing plant; scale &
brown field synergies Gas consumption at the new plant will
be 15% less than the existing plant. Engro’s Daharki
complex will become the world’s fifth largest Urea production
site; 2.28 million tons, 3 plants.

3
Engro Energy Limited

Established in 2006-100% owned subsidiary Pakistan is

facing growing energy deficit -Energy consumption has been
growing at 7% per annum Setting up a 220 MW gas based
power plant at a cost of $220 million with commercial
operation in 2009 Short-listed along with 3othercompanies
for privatization of Jamshoro Power Company

Engro Innovative Automation Limited

Acquired majority stake (51%) in a knowledge based
company Innovative Engineering & Automation Ltd in 2003
Market Leader in domestic Industrial Automation –Honeywell
distributor in Pakistan Expanding internationally to
synergize, and benefit from lower costs at home and higher
demand abroad Now operating in Dubai, UAE which
contributes 25% of revenue and half of the profit Company’s
first IP product “iboiler”launched internationally in 2006
Acquired an automation company in the US in Dec. 2006;
mandated to develop outsourcing opportunities

Engro Vopak Terminal Limited

A 50-50 JV with Royal Vopak of Holland; established 1997

Royal Vopak is the world’s largest independent tank terminal
operator Engro Vopak handles 70% of liquid chemical
imports in Pakistan .Setting up our country’s first Cryogenic
facility for ethylene imports

4
Well positioned for setting up proposed LNG terminal –under
active consideration of the government; Cost US$ 350 –400
million.

Engro Asahi Polymer &Chemicals. Limited

Established in 1999. 80-20 JV with Mitsubishi Corp.

Pakistan’s only PVC manufacturing plant; facing buoyant
domestic demand since 2006 Successfully placed 22% of
sales in diverse export markets from Australia to East Africa
in prior years (2004 –2005) Expansion and back integration
underway –imported ethylene + new caustic soda plant;
EDC/VCM/PVC

Engro Food Limited.

Established in 2005, a 100% owned subsidiary –First

investment of dairy plant Processed milk market is growing
at approx. 20% per annum Olpers achieved peak market
shares of 12.3% within 6 months of launch Other products
launched -Olpers Cream, Olwell –High Calcium Low Fat Milk
(Premium Brand) Plans to expand product portfolio Milk
processing capacity to increase by 200% to 200 million liters
annually Will become the only company in Pakistan covering
the entire milk catchments area Already has the second
largest chilled milk collection system in the country
Distribution network to double from 58 towns to 119 towns
by the end of 2007JV with global food major in advanced
stage of negotiation

Food industry in Pakistan.

5
The food and its allied products industry is considered
Pakistan’s largest industry, and is believed to account for 27
percent of its value-added production. Trade sources
estimate the sector's total value of production is over rs.46
billion (rs.58.00 equal usd 1.00 at the current exchange
rate). Pakistan’s food industry produces cooking oils,
hydrogenated vegetable oils, sugar, flour, dairy products
such as milk, butter, yogurt, cheese and ice-cream, biscuits,
breads and confectionery, fruit juices and fruit juice drinks,
carbonated beverages, snack foods based on rice, potatoes,
corn and pulses, processed chicken, jams, jellies, squashes,
sauces, pickles, and some cereals and canned fruits. The
fish, meat, fruit and vegetable sectors are underdeveloped
partly for lack of adequate infrastructure, including storage
and transportation facilities. Government policies and plans
are expected to greatly increase the development of
seafood’s industry.
Development and implementation of milk standards is also
essential to define milk price based on quality. Dairy science
and technology education universities also need to support
industry in dairy breeding, nutrition, industrial management
and product quality. Presently no under-graduate program is
available in the country to support this sector. Presently,
Pakistan has only a few scholars in prime principles of dairy
science including animal breeding and genetics, dairy
nutrition, dairy management, and dairy technology to
support and develop dairy industry. It is essential because
the veterinarian could only provide support to the animal
industry developed on the animal production science
principles. Animal or dairy production science is altogether a
different subject than that of veterinary education.
In conclusion, development of dairy cooperates, restructuring
of

6
Extension; research and educational institutions could perk
up rural oriented dairy sector to market oriented dairy
industry that guaranteed food security social and economic
growth in Pakistan.

Engro Food
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. Engro Foods has already set up two processing
plants at

Sukkur and Sahiwal. With the ever expanding milk collection

network and processing facilities, the Supply Chain has
geared us for the growing sales of our products

We believe that our recent successes will take us to our

goal: To be one of the biggest players in the food business.
Our aim is to dominate the food business, and to achieve
this we will settle for nothing less than the cream!

Our Brands.

7
Our Affiliates

Our Values.

Integrity
We have an open disclosure policy and transparent
processes. All our business activities / transactions are
carried out honestly and with fairness.
Our People
Have passionate people with intelligent and firm approach
towards business. To facilitate these people we give those
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.
CSR
We stand committed to sustainable business growth and
ensure 100% compliance of CSR by ensuring the safety of
our people, assets and the community in which we operate.
EFL takes significant strides in poverty alleviation - both rural
and urban, environmental safety and build up of farming
expertise.
Consumer Centric
Consumer is the reason for our existence as a business.

Olper’s Milk

8
Olper’s is UHT Milk UHT means Ultra Heat Treatment. In this
process the milk passes through 140 degree centigrade in 3
seconds and then immediately cooled to 20 degree
centigrade in the next 5 seconds, which in turn kills all the
bacteria. This is the most sophisticated and advanced
process in the world. At Engro Foods Limited we use the
indirect method of UHT meaning that milk is heated by
steam passing through stainless steel pipes outside milk. All
other brands in Pakistan use the direct method of heating
that is by injecting steam in the milk, this adds water content
in the milk, where as indirect heating in fact evaporates
water from the milk. This is what makes Olpers the "Thickest
Milk".

Mission

“Build Branded food business to improve quality

of life by offering tasty, affordable and highly
nutritional products to our consumers while
maximizing stake holders' value “

Vision

Aims at transforming the company

within the next five years into first a
national food industry giant, then into a
regional force and finally into a global
player.

9
Competitive Analysis.

Scope
We consider all Tetrapak milk products as competitors of
Nestlé Milkpak

Market Share

Name Market share%

Nestlé Milkpak 41
Haleeb 30
Olper’s 21
Others( Good milk) 08

Market share %

8%
21% 41%

Milkpak
Milk pack
Haleeb
Haleeb
olpers Olper’s
Others Others

Base of Competition.

10
Price is not a base of competition for Olper’s because the
prices of Olper’s and its competitors are almost same so
base of competition is quality and purity.

Threat of new entrants

Some brands are introduced in the milk market such as

Nurpur and Sabeen, Good milk. These are seasonal brands
so Engrofoods Olper’s is not afraid of these seasonal
brands because these brands try to capture those markets,
which are not effectively covered by Olper’s. Prices of
these brands are not much different from Engrofoods
Olper’s.

Major Competitors

For Olper’s Nestlé Milkpak and Haleeb are the major

competitors it captures about 41% Nestlé Milkpak and 30%
by haleeb of the market share. Prices of Haleeb and Nestlé
Milkpak are same as to Engrofoods Olper’s.

BCG Matrix

11
 Market Share
High Low
Stars Question Mark
High

OLwell
Market Growth

Cash cows Dogs

Low

Marketing

12
Marketing is the role used by the business to plan, price,
promote and distribute products/services to individuals. The
Engrofoods Olper’s marketing includes:

(I)Situational analysis
(ii)Target Market
(iii)Objectives/Goals
(iv)Marketing strategies and the marketing mix
(v)Monitoring & Controlling

I - Situational analysis

SWOT Analysis
Strengths (S)
1. Worldwide fame of Engro.

2. Efficient milk collection system.

3. Keeping high quality standards.

4. Integrated distribution and warehousing facilities.

5. Successful related diversification.

6. Generic brand name of Olper’s

7. Large market share of Engro innovative and

chemicals.

8. Having Good reputation in the market by strong brand

name i.e. Engro

13
 Collect raw milk from approved dairy farms and process it
ensuring the highest standards. Some people think that
perhaps olpers milk is made from chemicals or synthetically
but this is not true.

Weaknesses (W)
1. Unable to compete in price sensitive segment of UHT
milk market.

2. Under-utilization of the capacity.

3. Unable to fulfill the demand of local powder milk

market.

4. Not yet ISO certified

Opportunities (O)
PAKISTAN with 33 million tones of milk production per year
is ranked as world’ fifth leading milk producing economy.
Per capita milk availability is about 240 liter per annum that
is much higher than most of the developing countries.
therefore, here is high opportunity for growth .

1. Population growth rate.

2. High urbanization rate.

3. High literacy rate.

4. Flexible government policies for food industry.

5. Have significant growth opportunities

6. Has sufficient capital to expand.

14
7. Has the potential to innovate and differentiate the
company's products to sustain a competitive advantage

8. May merge with other global businesses to eliminate

competitors.

9. Having Capable of expanding into other markets of the

world.

Threats (T)
Has many major global competitors with its main one being
Nestle Pakistan, Haleebfoods can be substituted by other
milk producer made by its competitors. These competitors
may develop marketing strategies to eliminate The
Engrofoods Olpers. There may be an economic downturn in
the business cycle.
1. High inflation rate.

2. Low purchasing power.

3. Decrease in GDP growth rate.

4. Increasing interest rates.

5. Decreasing investment.

6. Recessionary period in business cycle

15
ii-Target Marketing.
Demand Pattern.
Engrofoods Pakistan believes that demand pattern for
Olper’s or milk is cluster demand. Cluster demand is a
demand in which consumer’s needs and desires can be
grouped into two or more identifiable clusters, each gives
its own set of purchase criteria. Packed milk buyers want
Quality others want affordable price and still other want
both and easy availability.

Possible Basis of Segmentation.

There is no single way to segment a market. A marketer
has to try different segmentation variables, alone and in
combination, to find the best way to view the market
structure. Engrofoods Pakistan establish different basis for
segmentation such as demographics, psychographics,
behavioral segmentation, personal demographics and
benefit segmentation. It is interesting to know that only in
Karachi sale of Olper’s is 50% of the total sales we can
conclude that its usage rate is high in urban and denser
areas. Behavioral segmentation divides buyers into groups
based on their knowledge attitude, usage or responses to a
product. Buyers can be grouped according to occasions
when they get their idea to buy, actually make their
purchase or use the purchase item.
Engrofoods Olper’s is a multipurpose brand, it means that
you can use it in making tea, sweet dishes and drink it as
healthy diet. In Pakistan, mostly it is used in making tea
and tea is more often consumed at breakfast and in evening
time an important base in behavioral segmentation is
attitude towards product. Pakistani society is not so much
educated on large scale. People have some time negative
attitude towards Packed milk Such as infra red waves have
been used in packaging material and some people have
some doubts about its quality. Engrofoods gives its special

16
consideration toward this issue. The company is trying to
change the people’s perception about its product through
advertisement. In personal demographic segmentation the
company gives importance to income and household size.
They have offered different sizes of Engrofoods Olper’s for
different consumers belonging to different income levels.
They give special importance to benefit segmentation. They
promote the symbol of purity and try to highlight this in the
advertisements. Engrofoods uses multiple segmentation
bases for example they use benefit segmentation to identify
consumers seeking different benefits. They also use income
level as a powerful base of segmentation and they use
geographic demographic segmentation.

Market Targeting.

After developing possible basis of segmentation, the

company now has to evaluate the various segments and
decide how many and which one to target. Engrofoods
evaluates different segments for Olper’s on the basis of
potential and growth of different segments.
Selecting Market Segments
After evaluating different segments, the company must
decide which and how many segments to serve. Engrofoods
adopts differentiated marketing strategy to cover the
market for its brand i.e. Olper’s For example for different
income level consumers Nestlé Milkpak offers a variety of
products. It also offers various sizes of product for different
classes.

1000 ml and 1500ml - for upper middle class and lower upper
class 500 ml and 250 ml - for middle class and lower middle
class 250 ml - for small town area
The Engrofoods Olper’s is generally for all consumers.
However, there are some brands, which target specific
consumers. Especially the house wives they are especially
keen about their families’ health and main recommenders for

17
the buying of good quality milk and of course these all fulfill
by Olper’s.

iii-Objective and Goals.

Engrofoods main objectives are to supply everyone their

favorite olpers Milk and to satisfy the consumer needs and
wants. Engrofoods second main objectives are to provide
profit to the shareholders and increase the market share.
EFL dreams to be BIG. We want to be a major player in the
food industry which is also evident in our vision, "Elevating
Consumer Delight Worldwide". EFL wants to challenge the
industry norms and surprise whoever has eyes on EFL.

18
VI-Marketing strategies and marketing mix
Marketing mix:

Product
The Engro foods products include Olpers Milk, Olpers Cream
Tarang Milk and Owel.The Engrofoods packages its milk
Olper’s into packs of sizes 1500ml 1000ml, 500mL and
250mL. Engrofoods is the most well known trademark,
recognized by 94 per cent of the Pakistan’s population. The
business is very successful and holds a very good reputation.

Marketing strategies for Product.

The Engro Food uses marketing strategies for Olper’s to
differentiate its product from its competitors to gain a
competitive advantage.

19
Price
The prices of Engrofoods Olper’s vary according to the the
size. The prices of the Available Olper’s Packs are shown
below.

Olper’s Olper’s Olper’s Olper’s

1500ml 1000ml 500ml 250ml
Rs.12

Pricing Methods/Pricing strategies

The Engrofoods Olper’s are sold in retail stores, convenient
stores, Departmental outlets etc. The pricing
methods/strategies are set by those the company sells to.
Convenient stores, Departmental outlets usually sell Olper’s
at a fixed price according pack sizes.
However, retail outlet uses pricing methods and pricing
strategies when selling Engrofoods Olpers.

Pricing methods
Pricing method Explanation of pricing method
Competition-based pricing Engrofoods Olper’s is usually
priced below, above or equal to its competitors' prices.
Discount price Olper’s are often marked down during sale
periods and special occasions. Like Ramadan this will:
Generate sales Increase profits

20
Pricing strategies
Pricing strategy Explanation of pricing strategy
Meet-the-competition pricing The Engrofoods Olper’s pricing
are set around the same level as its competitors.
Psychological pricing Most of the Engro foods for Olper’s use
this method of pricing. For example, for a pack of 250mL x
27 packs of Olper’s milk it is priced at Rs.320 instead of
Rs.330.This pricing strategy makes consumers perceive the
products to be cheaper.

Packaging
Packaging is the science, art and technology of enclosing or
protecting products for distribution, storage, sale, and use.
Packaging also refers to the process of design, evaluation,
and production of packages.

Packages and labels communicate how to use, transport,

recycle, or dispose of the package or product. With
pharmaceuticals, food, medical, and chemical products, some
types of information are required by governments.
The packaging and labels can be used by marketers to
encourage potential buyers to purchase the product. Package
design has been an important and constantly evolving
phenomenon for several decades. Marketing communications
and graphic design are applied to the surface of the package
and (in many cases) the point of sale display.

Engrofoods follow the entire Packaging standard for the UHT

Olper’s Milk as also considered the Information and
Marketing aspects and giving all the information regarding
products precautions and information regarding feedback

21
Milk consumers in Pakistan are today becoming more and
more aware of the diseases associated with the use of open
milk. The Consumer Preference Survey shows that 89 per
cent of the people in cities considered packaged milk as safe
for consumption, whereas only 34 per cent respondents
considered loose milk as safe. More than half the
respondents (56 per cent) actually preferred the UHT milk.
Besides, milk is used in tea, desserts and other foods and
beverages. Though, during boiling few common bacteria get
expunged, but quite often, the dangerous pathogens survive
normal boiling temperatures also. However, when Olper’s
milk is processed for packaging it goes through a number of
steps that ensure purity. Vitamin D is added to fresh milk
and it is pasteurized at 280oF (138oC) for at least two
seconds which increases the shelf life. As it flows out of the
pasteurizer, most Olper’s milk is homogenized by being
pumped through extremely tiny openings. As a result, the
milk fat is broken up into particles too small to stick together
and remains mixed throughout the milk rather than rising to
the top as cream. Olper’s packaged milk has been regarded
as one of science's most useful techniques as it assures
fresh, high-quality milk to the consumer without the hassle
of refrigeration. It has also become easier to transport thus
people living in remote areas can also benefit from it now.

The UHT processed milk is cooled rapidly to at least seven

degrees Celsius and packaged into pre-sterilized containers
and aseptically sealed. Since bacteria cannot enter the UHT
milk, it can be stored at room temperature for at least three
months.

Olper’s milk has clearly surpassed open milk in its

advantages and should be encouraged more so that people
realize its benefits and switch to a healthier lifestyle.

Promotional strategies.

22
The Engrofoods Company uses advertising as its main source
of increasing consumer awareness. It mainly uses the
television. There are many television advertisements on
Olper’s milk. This source allows the company's products to
reach a large audience. The latest television advertisement
for Olper’s milk was the

“SUBHA BAKHAIR ZINDAGI”

Effective advertisement might be successful in generating

initial sales (user trials for the brand), but in the long run
only Quality products are able to survive and generate
repeated sales. The high ethical standard of Engro Foods is
the driving force behind a quality product which has
outperformed all expectations and has penetrated the market
at an enormous rate.

According to the Internet survey that Top 10 Brands that

advertised on Entertainment Channels in Pakistan 2007
Olpers is on 7th and here are no Competitors seems.

23
 Top 10 Brands that advertised
On Entertainment Channels

Events Promotion
World of Olper's " Float, Sunday Bazaar, Stall Promotion,
Merchandising " at Lahore

24
During Ramadan, Olpers outsold its competitors like Good
Milk or Haleeb. The reason is that they did free sampling.
During Iftar, they gave away free Olpers 250ml cartons.
Olpers is a brand of Engro Foods, they can supply to rural
places very quickly.

Personal selling every year, The Engro Food’s for Olper’s has
a highly trained sales team, which acts as a representative of
the company to the retailers. This strategy helps to maintain
service and product loyalty. It has been demonstrated by the
business to be highly effective.

Products.
Place of distribution

25
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.

EFL operates two dairy processing factories located in

Sukkur, and Sahiwal. 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.

The Engrofoods Company sells its products operations,

distributors, fountain wholesalers and retailers. These then
distributes them
To retail outlets, milk bar and corner stores, restaurants,
petrol stations and newsagents. Olpers covers almost 98%
outlets all over in Pakistan as
Engro Foods Wholesalers/distributors
Retail/corner stores
Departmental stores
Consumers
Place strategies
Place strategies Explanation of place strategy
Indirect distribution The Engro Foods Company uses
intermediaries in its distribution. That is, the company does
not sell its products directly to its consumers.
Intensive distribution The Engro Foods uses the intensive
distribution strategy. The business's products are sold in
almost every outlet including: retail outlets ·small shops ·
Departmental stores and entertainment venues etc.

26
V-Monitoring & Controlling.

Engrofoods Olper’s milk Team Specially keen concern their

product Quality they Claims that all the ingredient usually
occur in natural milk which are listed below present in Olper’s
milk because during the UHT Process few of the ingredients
may wasted due to ultra high temperature that is good about
the quality of Olper’s Milk because Olper’s having good and
technology to provide the natural milk to the consumers with
all their ingredients and quality.

Engrofoods also concern Development and implementation

of milk standards is also essential to define milk price based
on quality. They also monitoring the market share of Olper’s
when they came to know that one segment of our
consumers are not eligible to buy the Olper’s milk after
increasing in the price Engrofoods launch milk named
TARANG which is 20%less in price as Olper’s.

Due to their best quality good price, Olper’s become a

good threat for the competitors and also concern about
good marketing due to all these good controlling and
monitoring Olper’s become the cash cow for Engrofoods.

27
Achievements

Olper’s achieve a lot with in short span of time. In

December2 006: Engro Foods Limited has cross Rs 1 billion
in sales for its Olper's Milk, launched in March this year. The
Rs 1 billion rupee milestone was achieved at the end of
October, in less than 8 months of the launch of the new
pack milk brand and by the end of 2007; the sales figure is
expected to reach Rs 1.4 billion.

In a statement issued here, the marketing director of Engro

Foods Ltd, Ali Akbar said, "We believe we have set an all
time record as far as sales of a new milk brand are
concerned and in a very short time Olper's has opened in
over 50 towns in Pakistan, becoming a national brand."

"This is all the more remarkable since we entered a market with very
strong existing players and our success has come primarily because
the people of Pakistan clearly felt Olper's to be a higher quality
product,"
he added. Olper's Milk is produced at the company's
modern production facility in Sukkur and goes through
several stringent quality checks starting from the milk
collection points, before it reaches the consumers. He said,
the demand for Olper's has come not only from first time
users of packaged milk but also from users of other brands
who have shifted to the Olper's brand owing to its taste and
quality proposition and its convenient

availability all over the country. He said, the company is

now in the process of setting up another production plant in
the central Punjab region. Engro Foods had also launched
Olper's Cream in September this year and is now poised to
further expand

28
Engro Foods expansion on a bigger scale.
Engro Foods Limited who had recently set up Dairy industry
in Central Sindh (UHT Milk plant) by investing about Rs one
billion, further plans to set up a similar set up in Central
Punjab and also emerging as Food Giant firstly on National
Level and secondly as world class International Food Giant by
adding a large number of other food products through
investment of $200 million plus, probably envying to emerge
as an international food company on similar lines as NESTLE
did. The company plans exporting its products to central Asia
and Middle East.

Dairy science and Technology in Pakistan.

Development and implementation of milk standards is also

essential to define milk price based on quality.Dairy science
and technology education universities also need to support
industry in dairy breeding, nutrition, industrial management
and product quality. Presently no under-graduate program is
available in the country to support this sector. Presently,
Pakistan has only a few scholars in prime principles of dairy
science including animal breeding and genetics, dairy
nutrition, dairy management, and dairy technology to
support and develop dairy industry. It is essential because
the veterinarian could only provide support to the animal
industry developed on the animal production science
principles. Animal or dairy production science is altogether a

different subject than that of veterinary education.

In conclusion, development of dairy cooperates, restructuring
of extension; research and educational institutions could perk
up rural oriented dairy sector to market oriented dairy
industry that guaranteed food security social and economic
growth in Pakistan.

29
SUGGESTIONS AND RECOMMENDATIONS
Following are the suggestions and recommendations for
Nestlé Milkpak Ltd.
 The company should introduce its UHT brand for the price
sensitive segment of UHT milk market in order to counter
the market of “Dairy Queen”.

 They should also start to manufacture powder milk in

order to meet the domestic demand and so that it can be
helpful in saving the foreign exchange that is expensed in
importing the powder milk from foreign countries.

 The company should explore the market potential in a

way, so that it can utilize its full capacity in order to gain
economies of scale in the production.

 At the moment the company is using focus marketing

approach that only that segment is approached which
highly attractive for the company but it should also develop
the marketing program that distinguishes the
characteristics of existing available substitutes to their
highly quality & hygiene oriented product.

 The company should also position its products to the

middle-income group like “Everyday” and “NIDO” have been
positioned after their new small packaging launch.

 The company should also develop an integrated

awareness plan in order to aware the people about the
quality of the UHT milk as compared to other pasteurized or
loose/fresh milk.

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REFERENCES

1. Marketing Management by Kotler 12th Edition.

2. Marketing Management by Kotler 11th Edition.

3. Principle of Marketing by Kotler.

4. Marketing by Stanton.

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5. www.olpers.com.pk

6. www.engrofood.com.pk

7. www.engrochemicals.com

8. www.Engro\web search\marketing-sales.aspx.htm

9. www.Engro\web search\about-us.aspx.htm

10. www.google.com

11. www.wikipedia.com

12. Marketing director of Engro Foods Ltd,

Ali Akbar Karachi

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