Strengths

1. Engros Back
Olpers is a brand of ENGRO foods. ENGRO foods can easily afford research and development. ENGRO can distribute the brand through better channel

2. PR with farmers
ENGRO has a strong bond and long term relationship with the farmers who are willing to supply milk to the company.

3. Positive response from customers

In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction upon EFLs products for its taste, quality proposition and world-class quality proposition system.

4. Strong consumer & product research 5. Third-Generation Plant

AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies. Third-generation UHT milk plant in the country. Bactofuge technology plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).

1. Olwell TVC

Weaknesses

Olwell ad which is based on Western life style failed to analyze in Pakistan, where practicing Muslims reside, ignoring the ethics, religious beliefs and cultural values.

2. Owning Red Color.

There is no color association attached to Olpers.

3. Milk collection & distribution costs

EFLs 34 out of 40 milk-collection centers are located in Punjab, 1Sukkhur (Sindh). It increases in collection & distribution costs, increases the chances of milk getting spoiled because of increased travelling time.

4. Narrow brand portfolio

EFLs brand portfolio still consists of just 3 products i.e. Olpers Milk, Olwell Milk and Olpers Cream.

Opportunities
1. Increased funding by Government (Government has decided to increase farmers funding). 2. Increased consumption of PLM (Each competitor in the milk industry wants to increase penetration of processed liquid milk). 3. Awareness (Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption). 4. Third largest producer of milk (Pakistan with 32 billion liter of milk a year, 3 billion litres in the next few years, this is quite an opportunity for ENGRO foods as there is lot of growth in this part of the Sector.

Threats
1. Perceptions and Price Differentials (Consumers perceptions and price differentials can cause a threat for the company. It is important that Olpers comes up to the expectations of the customers, for example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk. 2. Competition (For Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

IQRA UNIVERSITY
Introduction to Business (ITB)

Assignment # 1
SWOT ANALYSIS
(Strength, Weakness, Opportunities and Threats)

Membership Profile: Student ID # Topic: Reference: Link:

Shamsher Shiraz 023-11-10647 Olpers Milk (Engro Foods Ltd) Google / Face book

bzupages.net/.../8148d1241655901-group-no-9-presentation-olper-s...

Assignments (Guide lines): Comprised pages:

As written in the group email (Individual based) 2 pages (including)

Submitted to: Aazia Rafiq

Ms.

Date: 30th September 2012