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Marketing of Olpers Milk and Nestle Milkpak
Government College University
Page 21
y

Lack of education among the farmers is making it difficult to change farm and dairy
management systems.
y

Despite the huge volume of milk produced in Pakistan, processors find it hard to procure
sufficient milk to meet future consumer demand.
y

Load shedding is a major problem of all companies because they purchase generator for
the running of their chiller, due to this the company¶s budget and price of milk increase.
PEST ANALYSIS
Political factors:
The rules of government of Pakistan do affect the company and its brand. The company
policies are affected and its budget is also affected .Nestle paid15% sales tax and18% excise
duty when they direct import chiller from the other country but mostly they purchase chillers
inside the country .Increases the prices of light and petrol effect transportation and other
cost.
On the other hand, Government gives chiller to the Nestle Milkpak at interest free installment
through UNDP and PDDP projects. This process reduces the pressure on milk industry and
increase the productivity.
Economical factors:
If we disintegrate our milk supply chain and re-evaluate its each component in detail, it will
be safe to say that there are fair enough chances of such lethal contaminations. The first and
probably the most crucial problem arise from the on-field farm practices of our rural farmers.
Pakistan is blessed with good genetic potential for dairy development, buffalo being the
principal source of milk. But due to problems such as poor nutrition, mismanagement, failure
to control disease, unavailability of veterinary and poor animal husbandry, only 5% milk is
used for processing.
Nestle Milkpak is playing an important role in the economic growth of Pakistan .They earn lot
of profit and also trust its profit in social welfare through making schools etc. They also give
job opportunities to the people of rural areas through giving them animal on interest free
installments. Now a days, our economy is on recession due to this the prices of processing
milk is increasing day by day.
Social factors:
Social factors include the demographic and culture aspect of the external micro environment.
These factors affect customer needs and the size of potential market. People mostly prefer
fresh and open milk & rely less on processing milk because they understand processing milk
companies add chemical in milk during process. But Nestle Milkpak try to change this trend
Marketing of Olpers Milk and Nestle Milkpak
Government College University
Page 22
through advertisement and awareness programs. Processing milk is mostly used in large
cities or
towns. Companies try to win large number of customers giving quality or values.
Technological factors:
Technological variables have an overall positive effect on the business. As rate of innovation
and production technology is always in the favor of company. Technology is particular
importance because it has always been the main source of increase in productivity. Nestle
uses latest technology and high quality machinery in the production of milk. For example
Nestle recently open Asia¶s largest factory in Kabirwala. Nestle Milkpak used machinery
which produced1800 to 2000 tones milk daily.
M arketing M ix
Product:
y

Quality Product
Nestle Milkpak has the largest market share due to its consistent quality.
y

Product Style and logo

Nestle Milkpak is available in different product range and stylish packaging.
y

Product Lifecycle
Nestle Milkpak has been in the market for a very long time and it is at maturity stage.
Price:
y

Competition Based Pricing

Milkpak is holding a large share in the market due to its quality at same price as compared to
competitors.
Placement:
Distribution Channels:
Milkpak is not sold directly to consumers and the complete distribution process is followed. It
uses indirect channels for distribution like:
y

Manufacturer
y

Distributor
y

Wholesaler
y

Retailer

Marketing of Olpers Milk and Nestle Milkpak

Government College University
Page 23
y

Consumer
Promotion:
y

Focusing on health conscious people in their advertisement.

PromotionMix
y

Advertisement
y

Public relations
A FAMOUS BRAND
Brands like Milk Pak (owned by Nestle) had led the dairy market in the world¶s fourth largest
milk producing country for nearly two decades without any real sustained competition. Engro
Foods, in contrast, had only recently been established by Engro a traditional giant in
Pakistan's chemical and fertilizer industry.
Evidently, Olper¶s has woken up the competition. Milk Pak responded with campaigns of its
own to reaffirm the positive equity of its brand and has largely focused on a message of
health, vitality, and strength through quality milk. Despite dwindling market share ³Olper¶s is
very strong in terms of consumer quality perception. Our monthly blind taste tests show that
consumers rate Olper¶s significantly higher than Milk Pak´.
Olper's continues to understand its consumers and follow through on that knowledge. Engro
Foods aims to become the only company to utilize all of the milk collecting areas in Pakistan
and also plans on developing the biggest dairy farm in the country. The company¶s
reputation as a local giant actively involved with community welfare in remote areas has also
been a positive add-on for Engro Foods.
Branding experts could not imagine how Olper¶s could distance itself from its parent
company¶s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end of
2006, sales for Olper¶s Milk had reached Rs.1 billion (approximately US$15 million) and in
2008, the brand has a market share of close to 22 percent second only to Milk Pak
(estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the
multi-billion rupee packaged milk category meant business.
Marketing of Olpers Milk and Nestle Milkpak
Government College University
Page 24
RECOMM ENDATIONS
For Olper¶s
y

Olwell¶s advertising must conform to local values.

y PR Activities; mother¶s day special sponsorships.
y

Advertising at the right place; Olwell¶s TVC can run during yoga shows in the morning.
y

Offer discounts in Ramadan.

For Nestle
y

The immense competition is going in the market so Nestle Milkpak should penetrate
more and more in the market.
y

Only 4 % milk is being processed and 96% people are using loose milk so Nestle Milkpak
has the opportunity to capture a large share of the market through more creative advertising
and other promotional activities.
y

Nestle Milkpak should invest more on research and development because customers using
loose milk are getting a lot of contaminations especially in urban areas so Nestle Milkpak can
provide awareness to people in this aspect.

Marketing of Olpers Milk and Nestle Milkpak

Government College University
Page 25

Marketing strategies of Olper's milk

and Milkpak
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ads
concept
marketing positioning
tarang milk
strategic goal
olwell
nesvita milk
project
market segment
(more tags)

khaja1
Ads by Google

Tetra Pak
The world's leading food packaging
and processing solutíons company.
www.tetrapak.com

Mycotoxin Test Kits

Ensure the quality of your product.
Easy to use, accurate results.
www.vicam.com

milk cooling tanks

used milk cooling tanks
second hand bulk milk tanks
www.mondialcom.de

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Marketing of Olpers Milk and Nestle Milkpak

Government College University
Page 18
1992 onwards, with full support from the Nestlé headquarters in Switzerland,
reorganization of
the milk collection operation and the provision of agricultural technical assistance became
top
priorities.
The investment paid off. Within a decade, Nestlé's purchase of fresh milk had quadrupled,
and
the number of small farmers selling milk to Nestlé tripled.
In 2008 the market share of Nestlé Pakistan in the dairy milk category has been estimated at
40
percent.
M arketing Strategy
Nestle is pursing growth strategy. They have invested $ 70 billion at Kabirwala Plant and
they
are planning to invest $ 381 billion in the milk business.
Targeting:
y

Urban areas of the country

y

Upper and Middle income class

Segmentation:
y

GeographicSegmentation
Milkpak has segmented the market on the basis of Geographic segmentation and its
target market is major populated cities of pakistan.
y

D emographicSegmentation
Nestle Milkpak is also segementing the market on the basis of Income level of the
people. . The brand is meant for all the users in higher upper or middle class families.
Positioning
Nestle Milkpak has adopted the functional positioning strategy like:
³Khaalis He Sab Kuch Hai´
³Wohi Qudarti Maza´
³Jaan Banaoo´

Marketing of Olpers Milk and Nestle Milkpak

Government College University
Page 20
y

Focus on research and development

Nestle Milkpak give the value to the customer through new innovation. For this purpose they
add
iron quality in milk and Nesvita for strong bones.
Weaknesses:
y

Nestle Milkpak does not give milk to the shopkeeper on credit. This thing has affected on
the annual sale of the milk because their competitors give milk on credit.
y

Nestle Milkpak company does not spend its lot of money on advertising or other
promotion programs.
y

Price is also weakness of Milkpak because sometime its price is high than other
competitors.
y

Nestle has not been able to retain talented workers. People at the centers are sometimes
treated in an insulting manner. There is a lack of job surety in nestle Milkpak because they
give job most to their employees on contract basis.
Opportunities:
y

Pakistan dairy industry is the World¶s fifth largest industry with annual production over
40 million tones.
y

There is an opportunity for companies to introduce value-added products likeshrikhand,

ice creams, paneer, khoya, flavored milk, dairy sweets, etc.
y

There is a phenomenal scope for innovations in product development, packaging and

presentation.
y

There is an opportunity for companies to increase productivity through UNDP&PDDC

supporting projects.
y

Farmers are engaged in agriculture and dairy at the same time.

y

More people are coming towards processed milk because loose milk is dangerous for
health due to a lot of contamination.
y

There is an opportunity for investors to invest in Pakistan dairy industry.

y

There is an opportunity of the increasing employment for the people after starting
UNDP&PDDC projects.
Threats:
y

Very low quality milk is provided by the milkmen to dairy farms which is a very big
threat for the entire market.
y

The shortage of milk providing animals is also a threat for entire milk industry.
y

Poor profitability for farmers

y

Lack of contact for farmers to the market mechanism.

Marketing of Olpers Milk and Nestle Milkpak
Government College University
Page 21
y

Lack of education among the farmers is making it difficult to change farm and dairy
management systems.
y

Despite the huge volume of milk produced in Pakistan, processors find it hard to procure
sufficient milk to meet future consumer demand.
y

Load shedding is a major problem of all companies because they purchase generator for
the running of their chiller, due to this the company¶s budget and price of milk increase.
PEST ANALYSIS
Political factors:
The rules of government of Pakistan do affect the company and its brand. The company
policies are affected and its budget is also affected .Nestle paid15% sales tax and18% excise
duty when they direct import chiller from the other country but mostly they purchase chillers
inside the country .Increases the prices of light and petrol effect transportation and other
cost.
On the other hand, Government gives chiller to the Nestle Milkpak at interest free installment
through UNDP and PDDP projects. This process reduces the pressure on milk industry and
increase the productivity.
Economical factors:
If we disintegrate our milk supply chain and re-evaluate its each component in detail, it will
be safe to say that there are fair enough chances of such lethal contaminations. The first and
probably the most crucial problem arise from the on-field farm practices of our rural farmers.
Pakistan is blessed with good genetic potential for dairy development, buffalo being the
principal source of milk. But due to problems such as poor nutrition, mismanagement, failure
to control disease, unavailability of veterinary and poor animal husbandry, only 5% milk is
used for processing.
Nestle Milkpak is playing an important role in the economic growth of Pakistan .They earn lot
of profit and also trust its profit in social welfare through making schools etc. They also give
job opportunities to the people of rural areas through giving them animal on interest free
installments. Now a days, our economy is on recession due to this the prices of processing
milk is increasing day by day.
Social factors:
Social factors include the demographic and culture aspect of the external micro environment.
These factors affect customer needs and the size of potential market. People mostly prefer
fresh and open milk & rely less on processing milk because they understand processing milk
companies add chemical in milk during process. But Nestle Milkpak try to change this trend

Marketing strategies of Olper's milk and

Milkpak
Download this Document for FreePrintMobileCollectionsReport Document
This is a private document.

Info and Rating

ads
concept
marketing positioning
tarang milk
strategic goal
olwell
nesvita milk
project
market segment
(more tags)

khaja1
Ads by Google

Tetra Pak
The world's leading food packaging
and processing solutíons company.
www.tetrapak.com

Mycotoxin Test Kits

Ensure the quality of your product.
Easy to use, accurate results.
www.vicam.com

milk cooling tanks

used milk cooling tanks
second hand bulk milk tanks
www.mondialcom.de

Share & Embed

Related Documents

PreviousNext

1.

p.

p.

48 p.

2.
 15 p.

p.

30 p.

3.

30 p.

p.
 65 p.

4.

p.

34 p.

p.

5.

p.
 p.

25 p.

6.

58 p.

p.

p.
7.

1 p.

1 p.

2 p.

8.

12 p.
 433 p.

127 p.

9.

3 p.

p.

p.
10.

40 p.

p.

24 p.

11.

1 p.
 2 p.

p.

12.

1 p.

1 p.

1 p.
13.

1 p.

1 p.

29 p.

14.

2 p.
 40 p.

5 p.

15.

1 p.

11 p.

37 p.
16.

p.

4 p.

4 p.

17.

1 p.
 33 p.

14 p.

18.

2 p.

1 p.

More from this user

PreviousNext

1.
 7 p.

33 p.

25 p.

Recent Readcasters
Add a Comment

Submit
Characters: 400
Upload a Document

• Follow Us!
• scribd.com/scribd
• twitter.com/scribd
• facebook.com/scribd

• About
• Press
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 • Web Stuff
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• Copyright
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Download this document

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29987338-Marketing-strategies....pdf - 479.5 KB

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