Marketing Strategy of Olpers Milk

trade Strategy of Olpers MilkEngro Foods (Pvt.) Limited (EFL) was realised in 2005 as part of a huge diversification process at the Engro crowd. Engro Group itself is one of the leading business corporation with noble ventures in the fertilizer, nutrient, power, generation, petrochemicals, automation and terminal storage industries. Engro wanted to setup a latest fertilization kit and boodle but imputable to certain restrictions from the government was not able to expand in the fertilization field of view. in that location, the organization decided to initiate into a new food market. Olpers Milk, companys first off bell ringer was launched in 2006 in argonna cities of Pakistan simultaneously so that resultion gains popularity and visibility to breedher.By this information, we got the idea of entering a svelte draw that impart fulfill completely the necessitate of a household related to the use of draw.The plan, in a very brief agency describes what segments the company is going to tar develop, how and what strategies to take on to pass a brand position and make maximum profits. The plan likewise points out the strengths, weaknesses that accounts to internal factors that can affect a product and opportunities and threats, which ar the external factors disturbing the productCurrent Marketing SituationMarketing seek is an important step when a new product is to be launched into market especiall(a)y for an organization with no bring in the field. on that point argon numerous risks associated with the new product. so to reduce the risks, look for is a very important step towards the launch.The research uncovered that the food industry held the maximum promise and profits if on right track.The statistics show that Pakistan is the third largest take out producing country in the world, with urban consumption of about 7 billion liters annually. There is an overall growth in the PLM orbit due to awareness in health and hygiene, this co upled with an increasing dissatisfaction with the loose draw from the local doodhwala. In Punjab loose take out costs between Rs. 46 and Rs. 50 while tetra packed draw costs around 75, corresponding is the case is in Sindh where the price difference between the strong draw and packed draw is around 20. These are a few problems which engage to be solved in assign to penetrate the market to the full-of-the-moon extent.Market descriptionThe take out sector consists of the consumers that use up standardized preferences. solely consumers that drink either undecomposed or processed milk hold homogeneous and similar preferences and wants. Keeping these things in mind, it is very onerous for a new company to take on a challenge of producing on a large scale, distributing it extremely effectively and amplely promoting. The preferences that the consumers want are n beforehand(predicate) similar fit in to the survey. The inclination towards particular qualities milk should un wrap are, the milk should be white, milk should not smell, hygienically processed and is penny-pinching for health and bones. Keeping these preferences Engro Foods introduced two more products besides Olpers milk Olwell forage and Olpers pickaxAs previously mentioned, the preferences of all the consumers demanding or wanting milk are the same. So section is really a problem for the Engro Group but the preferences differ for a few consumers that prefer skimmed milk. The segmentation was done according to demographics, psychographics and behavior.Market segmentationDemographics generally refers to the age, sex and to which aliveness cycle stage an individual or group of race comes under. There are many products which are affected by the demographics of the customers. but Olpers milk is not affected by these boundaries and limits. This product is produced for all potential buyers and users from noble or middle course families. The research suggested that the lower class famili es get to a different attitude towards the processed milk. All the companies and groups in the milking sector are trying to change the forecast of the packed milk. Due to this image of the processed milk, even though not wanting to be, Olpers milk pull up stakes gain an image where it allow for look, it is made for a special kind classPsychographic in selling refers to the personality, brand consciousness, alivenesstimestyles and values of great deal. Some muckle are more goal-oriented and passionate about their goals. As Olpers milk and Olwell some(prenominal) focus on a person being physically and mentally fit, so stack will look upon this as a brand and will be expecting benefits which the marketers lose described.Behavioral factors include on which behavioral aspects are involved when segmenting the market. As mentioned above the company has divided its market into three totally different segments according to how people respond on different stimuli. This segmenta tion is done on a basis that people want milk that can be used as a tea whitener so obviously the color of the milk does national a lot. Secondly, customers want a product which they can use for all purposes, not solely for a single use. Marketers of this firm go to grasp in mind that they have to compete with opponents such as cling to and Haleeb which are in this department for a period longer than Olpers and they clear many loyal customers who will prefer the their respective brand respectively. production Reviewdifferent packaging of all the three products Olpers milk, Olwell and Olpers creamMarketers have decided to position it as a product that can be used for all purposes that the fresh milk doesUHT heated processor, that means high quality of milk6 layers of tetra pack for extra cleanliness and protecting the bear on milk from bacteria and germs3 months of shelf life, that means that storage of milk, or consumers can buy cartons of milk without worrying that the milk w ill get useless.Milk that attains all the nutrients which the fresh milk has.A product that stand bys weight down conscious people to loose weightHelping all users to have a chance to have sun-loving and strong bonesOlpers cream specifically tackles people who are addicted to desserts and meetha. This product can be used in desserts and cake icings and and so onCompetitive review competitor is very severe in the milking sector. Although there are only a few major rival in this sector but the emulation is increasing very rapidly. The major contestants which the marketers of this company will have to study and research upon are hold tight and Haleeb, both of which have grasped enough experience in this field and have acquired many brand loyal customersNestleThe market leader in this milking market is Nestle, which is producing and selling its product with the human body Milkpak since 1981. They introduced the concept of processed milk and established the concept of tetra pack milk in Pakistan. This was pretty well perceived by majority in Pakistan and a synonym was attached to the Milkpak as quality milk. The company has got capacious experience and is tracking growth strategies. They have got a secure fiscal background so they will be willing to invest both in promoting and advertising if needed. They have targeted their market to areas restricted to near law of proximity to urban areas and are targeting people having a middle or high neighborly class. They have always served the milking sector up to their capacity. The product is whimsical due to the addition of irons, vitamins A and C in the milk.Haleeb MilkHaleeb foods was established in 1986, just after(prenominal) the initiation of Milkpak from Nestle. Haleeb foods is serving this country for the ult 27 courses and have been quite successful in doing so. They were quite a competition for nestle when they launched haleeb milk in 1986, but somehow or the other they were unable to make that sor t of a image that the Milkpak achieved in early 80sHaleeb milk is said to be homogenized that means that all the nutrients and minerals are spread equally in a single carton. They have clarified UHT standardized milk, with 6 layered packing with a shelf life of 3 months or so.Anhaar MilkAnhaar fresh milk just dour into the milking market recently. They have entered market with a different aspect of processed milk. They turn down the idea of UHT standardized milk because according to their research UHT heated milk looses its original nutrient and minerals. Along with this the UHT heated milk lessens the advantages and over stresses the immune systemThis milk has a shelf life of only 3 to 4 days. They milk cow daily and the fresh milk is provided to the market soon after the milking process. Pure milk exhibits healthy digestive systems, healthy skin nails and hair, reduces chances of cancer, prevents diabetes and lowers cholesterol levels, controls blood pressure and improves immuni ty. So according to this firm they are providing all this to the end consumers. This can be a turnover in the milking market from UHT plant to providing farm fresh milk.Taraang milkTaraang milk joined this market to target low class families. Their main objective is to provide this class with a milk that double the taste and smell of tea. They have taken their way to attract people by celebrities dancing and fascinating advertisements rather than letting consumers know of how their product is different than the existing products in the marketSWOT analysisStrengthsEngro food is being backed up by the Engro group financially and by experience alsoRelationship with the farmers, as farmers are the suppliers of the milk to Engro foods terzetto generation plantStrong consumer and product researchPositive retort from the usersWeaknessesPackaginglow quality milk disseminationmilk compendium centersnarrow brand portfolioOlwell quite liberal ads according to our cultureOpportunitiespolitica l science funding for development of this sectorever increasing growth in the consumers of processed milkthird largest producer of the processed milkThreats long competitionprice differenceConsumer behavior and perceptionObjectives and issuesFirst form objectiveThe objectives for the period starting from the launch till the end of the first twelvemonth include attracting customers, changing consumers perception of processed milk, making this product a brand.Second year objectiveEnd of the second year objectives will include regular customers, with brand loyal customers as well, and tell apart evening the production costs as well as the plant costs.IssuesThese objectives will be a lot difficult to achieve if the marketing department fails to promote and advertise the product to the optimum level. If the first year objectives are not met than it will be approximately impossible to get through and through with the second year objectivesMarketing StrategyAs marketing strategy means to make strategies that are customer driven and implementing them through programs and awareness programs. This way new customers will be attracted, and will help the company to make profits and help the company build useful customer relationships.The marketers will set a position of Olpers milk according to uniqueness of the product. The marketers of this company will target middle to high social class that want a product that is as useful as its perceived value.PositioningThe red color that has been chosen for the packaging of Olpers milk is quite eye-catching and distinctive than the colors that have been used in Pakistan in the milking sector till now. The product will be positioned in a way that it conveys the message that it will fulfill all the purposes of a consumer that the fresh milk does.Olwell will be positioned in a way that it will target people who are goal-oriented and focus on their careers. This will also exhibit a image that this will help people remain fit and in the same shape without worrying for the lucubrate contents in the regular milkProduct strategyOlpers milk along with the Olwell will include all the features and core values that have been mentioned so as to receive maximum consumer satisfaction. More will be given than promised so as to achieve customer delight.A massive advertisement campaign with Olpers logo on every bill board, ads and newspapers. each marketing campaign will be utilized in order to let people know of the new product. There will be many below the line activities including free tea using Olpers milk will be provided to the potential buyers at major departmental stores for interrogation purposes, so that people know what type of product they will be using.Pricing strategyWe would be adopting competitive pricing strategy for all the products Olpers milk, Olwell, Olpers cream. In this type of pricing strategy, the prices of the competitors are analyze and the products prices will be determined by this. As the pri ce of Milkpak is around 70 Rs, we will introduce our milk with a price slightly lower than this and then(prenominal) gradually increasing it.Distribution StrategyOlpers milk will be launched in many major cities, and will number around twenty. Olpers milk will be distributed to over 80 cities very effectively in a short period of time after launch, because it is very difficult to launch a product in more than 25 cities simultaneously. The distribution strategy includes division of the country into five major regions. These regions will be Lahore, Karachi, Multan, Islamabad and Peshawar. This requires efficient transport facilities as well as warehouses and storages in different cities for the effective distribution. Trained personals will be hired who will be having an experience of at least two years in the distribution field. The dependence on technology for the distribution is necessary so new technology will be used to monitor the storages, warehouses etc.In order to attract di stributors with experience a fixed instruction rate of 5% will be set, that will be not be negotiable in order to avoid future fights and hassle. gross sales targets will be set twice every month after discussing the market situations with the distributors. Incentives, bonuses, increments, and training will be provided to the distributors and staff for further gain in the distribution field.Marketing researchIn the marketing research that we conducted after the launch of the product included interviews, questionnaires and surveys. This will enable us to improve our product and further diversify in the food field itself.The questionnaire was distributed to the customers at the local shops and departmental stores. 250 questionnaires and 50 interviews will be studied to evaluate customer satisfaction and what customers need and expect from our product.According to the survey, we give out that people between 28 to 50 use milk in tea, at the breakfast table, and youngsters drink milk when studying or going to school