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Vision
Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, to eventually become global."
Core Values
Leadership Innovation Diversity and International Focus Quality and continuous Improvement Individual growth and development Enthusiastic pursuit of profit Ethics and integrity Safety, Health and Environment
The milk sector shows a market that has homogeneous preferences of the consumers.
Demographic Segmentation Olpers products are not bounded to any particular age, gender or lifecycle stage. The brand is meant for all the users in higher upper or middle class families. Psychographic Segmentation Olpers have segmented the market more towards achievers who are goal-oriented and focused on their careers, and those who are seeking variety in the milk sector. Behavioral Segmentation Olpers products have been segmented on the basis of benefits that consumers seek in the milk. People look for a brand that can be used for all purposes from drinking to, tea whiteners as well to feed the animals.
Olpers Products color are quite different and distinctive . The brand has been positioned as an all purpose milk especially those who live life to the fullest, hence its tag line, jo dil khol kay jeetey hain unheen kay liyay hai Olpers Olperss cream is positioned as good for a specific use or application.
Strengths
Engros brand name Positive relations with farmers. Positive response from customers. Strong customer or product research. Third generation plant.
Opportunities
Increased consumption of processed milk. Awareness. Third largest producer of milk.
Weaknesses
SWOT Analysis
Packaging. Low quality milk. Milk collection distribution costs. and
Threats
Competition Perceptions differentials. and price
PEST Analysis
Economic Factors Inflation Rate Competition is increasing with the entrance of new domestic players Major textiles groups are also diversifying into dairy and livestock business.
Political Factors
unstable political conditions strikes and road blocking creates problem for delivery on time
Technological Factors Socio-Cultural Factors The perception that only loose milk is fresh. There is only 4% penetration of packaged milk.
Milk yields per animal have been increased through scientific feeding & breeding. In year 2005, the Ministry of Industries and Production established Dairy Pakistan Company on the lines and model of Dairy Australia.
Products
Olpers Milk
Launched on 20 March 2006. UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. available in easy-toopen, 6-layered Tetra Pak Brick Aseptic red packaging. 3 months shelf life.
Price
EFL is pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is determined considering the price of major competitors like Nestle, Haleeb etc.
aggressive marketing campaign. TVCs, print ads, radio commercials, billboards and plenty of BTL (below the line) activities including direct consumer and shop branding activities.
Ramadan Campaign
TVCS
Competitors
Nestle Milkpak Haleeb
MILK PACK
38%
40%
OLPERS OTHER
22%
Brief History
Nestle Milkpak was first introduced in the market in 1981 and originated the packaged milk category by which they pioneered Tetra pack milk in Pakistan. However Milkpaks Milk packs were very well received and the brand soon received and the brand soon became synonymous with quality milk. Its first real competition came in the form of Haleeb.
Marketing Strategies
Nestle is pursuing growth strategy. They have invested $10 billion at Kabirwala Plant and they are planning to invest $38 billion in the milk business.
Targeting
Urban areas of the country. Upper and Middle Income Class
Target Market is major populated cities of Pakistan Demographic for the users in higher upper or middle class families
Differentiation
Addition of IRON and Vitamin A and C
Strengths
Strong brand image. Quality Product Solid financial position. Conduct more training programs. Try to collect fresh and clean milk. Make shops for farmers. Strong supply chain networks. Qualified workforce. Commitment to high quality Focus on research and development
Weaknesses
Does not give milk on credit. Spend less on advertising. High price.
Opportunities
Worlds 3th largest industry. Introduce value- added products. Innovations in product development, packaging and presentation. Opportunities for investors to invest in Pakistan. Increasing employment for the people.
Threats
Political Factors The company policies are affected and its budget is also affected. Nestle paid 15% sales tax ad 18% excise duty when they import chillers from other countries.
Economic Factors
They earn lot of profit and uses its profit in social welfare through making schools etc. They also give job opportunities to the people of rural areas through giving them animals on interest free installments.
PEST
Social Factors People mostly prefer fresh and open milk and rely less on processing milk because they think that milk companies add chemicals in milk during process. Technological Factors Technological variables have positive effect on the business. Nestle uses latest technology and high quality machinery in the production of milk.
Product
Quality product
Price
Competition based pricing
Placement and distribution Milkpak is not sold directly to consumers. It uses indirect channel s for distribution. Color of the brand is green and white, which are the colors of Pakistans flag.
Nestle has been ruling the milk industry for nearly 2 decades. It was not spending much on advertisement and promotional programs. Nestle Milkpak had been like a sleeping giant. Evidently Olpers has woken up the competition. Milkpak has responded with campaigns of its own to reaffirm the positive equity of its brand,
Branding experts could not imagine how Olpers could distance itself from its parent companys incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end of 2008 the brand has a market share of close to 22% second only to milkpak(40%).
Olwell's advertising must conform to local values. PR Activities; mothers day special sponsorships. Advertising at the right place; Olwells TVC can run during yoga shows in the morning. Offer discounts in Ramadan.
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