Current Scenario of UHT and Pasteurized Milk Market Packaged Milk is around 5% of the total consumption of milk in the

e country 70% of UHT Milk is purchased for the purpose of tea making UHT Milk market is around 3 Million LPD Tea Whitener is around 40% of the total UHT market 70% of UHT Milk Sale is in 250ml pack and 30% in 1 Liter pack Pasteurized Milk market limited to major towns only and is 80,000 LPD (For Lhr, Rwp, Isd & Fsd) Share Composition of Pasteurized Milk Market
Pasteurized Milk Market Dairy Nurpur Gourmet Adam's Prema Others Total Volume (LPD) 20,000 30,000 12,000 12,000 6,000 80,000

Competitor Analysis Strengths Better consumer perception of pasteurized milk with regards to quality and taste resulting in high brand equity Total control on quality due to own cattle farms Pasteurized milk is pouch packaging is more vulnerable to damages and leakages hence making the brick packaging a safer and handy packaging solution Strong financial and business background of the group Higher price premium in brick packaging Competitor Analysis Weaknesses Short shelf life of Pasteurized milk as compared to UHT Milk making it a sensitive product

 Smaller market size of Pasteurized milk as compared to UHT Milk due to shorter shelf life, storage conditions and logistics issues. Limited geographical market (major towns) due to cold chain distribution and upper middle and upper class target market Limited market coverage and distribution network as compared to the competition Environmental Analysis Opportunities Quality issues in UHT due to adulteration at the back end gives an opportunity to better quality brick packaged milk to make its standing in the market. Packing of Pasteurized milk in Tetra packaging to obtain a longer shelf life can be explored to overcome the distribution and trade related challenges. Market size of packaged pasteurized milk with brick pack can be increased by converting the high-end UHT milk consumer to better quality brick Pack. Pioneer in brick packaged pasteurized milk at the moment. Easier to establish a respectable market position The company can venture into bigger UHT Milk and Powdered milk market in the longer run after having achieved the required expertise Environmental Analysis Threats Packaged milk market under pressure due to recession and reduced purchase power. (as a substitute of fresh milk) Proposed govt. taxes on packaged milk will further widen the difference in the prices of packaged and fresh milk affecting the price sensitive segment. Major players dealing in UHT Milk may come up with a similar product and can prove to be a tough competition Target Market

 Keeping in view the fact that 70% of UHT milk is used for tea making, companies have developed exclusive product for this purpose i.e. Tea Whitener, with reduced cost. Tea Whitener has taken around 40% share of the total UHT Market and is still expanding Some of the market of Liquid Milk has been taken by Packed Milk Powder, primarily, for tea making Pasteurized Milk used to sell primarily in pouch pack however; recently, with the advent of international standard cattle farming in Pakistan, premium brick packaging has been introduced in the market, which has been well received in the market Target Market Socio-Class: Since, brick packaging is an expensive packaging, the product is more expensive as compared to competitors available in pouch packaging. This rather makes brick packed pasteurized milk a product for upper middle and upper social classes as opposed to the lower middle and middle classes in case of pouch packaging. The above fact implies that the brick packed pasteurized milk has got the same target market as that of Tetra pack UHT Milk (1 Liter) Geographical Market: Since, major consumption of Tetra pack (1 Liter) and other expensive packaged milk products is in major towns, the geographical target market of Prema is limited to the major towns, more so, due to the inherent limitation with the cold chain distribution of short shelf life product, which has to be in a certain perimeter from the processing plant. Geographically, Lahore, Faisalabad, Rawalpindi, Islamabad, Gujranwala, Sialkot, Gujrat, Jehlum and Multan are the main areas of focus for distribution of Prema Age Profile of Target Customers: Prema is primarily being positioned as high quality, good taste, drinking milk which is equally common in use across all ages. So the target market ages from 4 years to 60 years Product Hierarchy Prema Milk

Pasteurized Milk in Brick Packaging Pasteurized Milk in Brick Packaging Pasteurized Milk in Pouch Packaging Prema Yogurt Plain Rawaiti Yogurt Mint Raita Zeera Raita Prema Butter Prema Cheese Yellow Butter (Salted) Cheddar (Block) Mozzarella (Block)

Launched Proposed

Distribution Strategy Distribution Network Presently, conventional distribution is being followed by appointing distributors and targeting the selective, premium and A-category trade Three towns to be targeted in the first phase owing to already established market and logistics facility Currently, the distribution operations are being carried out in Lahore, being the biggest market for brick pack pasteurized milk In second phase distributors will be appointed in Rawalpindi, Islamabad and Faisalabad Distribution Strategy Company has employed its sales force to ensure that sales targets are achieved and the desired level of product availability & market coverage is ensured . These will include ASMs and TSOs. International Modern Trade (IMT) including Metro, Makro and Hyperstar being serviced by entering into direct agreement with these stores.

 Chillers have been placed at selective outlets to ensure proper product placement and effective in-store branding Distribution Strategy POS including posters, standees and wobblers/hangers is applied for awareness and sales support Sales and Distribution Growth More towns will be added during the third phase of operations for launch of Pasteurized milk namely, Peshawar, Multan, Gujranwala, Sialkot, Gujrat and Jehlum More channels of distribution to be explored once the existing channel reaches the saturation point. Further channels will include: Opening of Milk Shops in posh areas of major towns with facility of home delivery service Door to door delivery of milk in posh areas on Qing-Qi containing refrigerated hood Distribution Strategy Value Added Products Yogurt has been launched in Lahore which is getting good market response Butter and Cheese to be launched also Yogurt, Butter and Cheese to be launched in other major towns after having achieved the desired results in the primary market