Olpers Milk

Olpers 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.

Competitive Analysis.
Scope

We consider all Tetrapak milk products as competitors of

Nestl Milkpak

Market Share

Name
Nestl Milkpak
Haleeb
Olpers
Others( Good milk)

Market share%
41
30
21
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Milk pack
Haleeb
Olpers
Others

Base of Competition.
Price is not a base of competition for Olpers because the
prices of Olpers 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 Olpers is not afraid of these seasonal
brands because these brands try to capture those markets,
which are not effectively covered by Olpers. Prices of
these brands are not much different from Engrofoods
Olpers.

Major Competitors

For Olpers Nestl Milkpak and Haleeb are the major

competitors it captures about 41% Nestl Milkpak and 30%
by haleeb of the market share. Prices of Haleeb and Nestl
Milkpak are same as to Engrofoods Olpers.

BCG Matrix

Market Share
High

Low

Stars

Question Mark

High

Market

OLwell

Cash cows

Dogs

ow

G
r
o
w
t
h

Marketing
Marketing is the role used by the business to plan, price,
promote and distribute products/services to individuals. The
Engrofoods Olpers 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 Olpers
7. Large market share of Engro innovative and chemicals.
8. Having Good reputation in the market by strong brand
name i.e. Engro
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.
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

ii-Target Marketing.
Demand Pattern.
Engrofoods Pakistan believes that demand pattern for
Olpers or milk is cluster demand. Cluster demand is a
demand in which consumers 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 Olpers 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 Olpers 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
consideration toward this issue. The company is trying to
change the peoples 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 Olpers 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.
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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 Olpers 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. Olpers For example for different
income level consumers Nestl 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 Olpers 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
the buying of good quality milk and of course these all fulfill
by Olpers.

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.

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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
Olpers into packs of sizes 1500ml 1000ml, 500mL and
250mL. Engrofoods is the most well known trademark,
recognized by 94 per cent of the Pakistans population. The
business is very successful and holds a very good reputation.

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Marketing strategies for Product.

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

Price
The prices of Engrofoods Olpers vary according to the the
size. The prices of the Available Olpers Packs are shown
below.

Olpers
1500ml

Olpers
1000ml

Olpers
500ml

Olpers
250ml
Rs.12

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Pricing Methods/Pricing strategies

The Engrofoods Olpers 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 Olpers
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 Olpers is usually
priced below, above or equal to its competitors' prices.
Discount price Olpers are often marked down during sale
periods and special occasions. Like Ramadan this will:
Generate sales Increase profits
Pricing strategies
Pricing strategy Explanation of pricing strategy
Meet-the-competition pricing The Engrofoods Olpers pricing
are set around the same level as its competitors.
Psychological pricing Most of the Engro foods for Olpers use
this method of pricing. For example, for a pack of 250mL x
27 packs of Olpers milk it is priced at Rs.320 instead of
Rs.330.This pricing strategy makes consumers perceive the
products to be cheaper.

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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
Olpers Milk as also considered the Information and
Marketing aspects and giving all the information regarding
products precautions and information regarding feedback
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 Olpers
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
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seconds which increases the shelf life. As it flows out of the

pasteurizer, most Olpers 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. Olpers 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.
Olpers 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.
The Engrofoods Company uses advertising as its main source
of increasing consumer awareness. It mainly uses the
television. There are many television advertisements on
Olpers milk. This source allows the company's products to
reach a large audience. The latest television advertisement
for Olpers milk was the
SUBHA BAKHAIR ZINDAGI

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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
10 Brands
that advertised
Olpers is on 7th Top
and
here are
no Competitors seems.
On Entertainment Channels

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

Promotion,

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.
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Olpers is a brand of Engro Foods, they can supply to rural

places very quickly.

Personal selling every year, The Engro Foods for Olpers 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
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 companys 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.

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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.

V-Monitoring & Controlling.

Engrofoods Olpers 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 Olpers
milk because during the UHT Process few of the ingredients
may wasted due to ultra high temperature that is good about
the quality of Olpers Milk because Olpers having good and
technology to provide the natural milk to the consumers with
all their ingredients and quality.

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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 Olpers
when they came to know that one segment of our
consumers are not eligible to buy the Olpers milk after
increasing in the price Engrofoods launch milk named
TARANG which is 20%less in price as Olpers.
Due to their best quality good price, Olpers become a
good threat for the competitors and also concern about
good marketing due to all these good controlling and
monitoring Olpers become the cash cow for Engrofoods.

Achievements
Olpers 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
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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

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.

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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.

SUGGESTIONS AND RECOMMENDATIONS

Following are the suggestions and recommendations for
Nestl 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.

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 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 middleincome 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.
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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