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Acknowledgement. Company Profile. Our Vision/Mission Product portfolio Yogurts review Product Review. USP & Positioning. Advertising message Reason to believe Competitors Review. SWOT analysis. Market Segmentation. Market size Marketing Mix (Product). Pricing. Distribution. Promotion.

COMPANYS PROFILE: The growth strategy which was adopted by ENGRO Chemical Pakistan limited was diversification. They diversify chemicals to food business. Engros 40 years old relationship with the farmer also gives Engro food another edge over the competitors. Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer and chemicals. Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Olpers Cream, Tarang, Olwell which is now Olpers Lite, Olfrute, Omore, Olpers cream. It has established itself as a major player in the food business. Engro Foods has already set up two processing plants at Sukkur and Sahiwal. With the ever expanding milk collection network and processing facilities, the Supply Chain has geared Engro for the growing sales of our products. The plant located at Sukkur on 23 acre land, has the raw milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day. The plant has been established at a cost of Rs. 1 billion which provides direct employment to 750 people. Engro Foods has entered the food business through milk processing and sale with the companys vision to pursue growth opportunities based on country fundamentals and own strength. It also positions the company to leverage its corporate social responsibility initiatives and work closely with rural communities to promote integrated farming and livestock development. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas.

Vision Engro Foods 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.

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.

Product Portfolio Top quality brands have been successfully launched under the helm of Companys dairy products. To support these brands and their highest standards of quality, Engro Foods has invested heavily in milk processing and milk collection infrastructure. Following are the current Brands under Engro Food Limited umbrella;

Olpers milk Olpers cream Tarang Omor Olfrute

Owsum

Olper's Lite

Yogurt review:

Highlights of yogurt market in Pakistan:

The yogurt market in Pakistan increased at a compound annual growth rate of 7.4% between 2004 and 2009. The yogurt drinks segment led the yogurt market in Pakistan in 2009, with a share of 81.7%. The leading player in yogurt market in Pakistan is Nestle S.A.

Scope of Yogurt Industry The Pakistani Yogurt Market is comprised of two separate segments: 1. Processed/ Packaged/ Refrigerated yogurt 2. Fresh/ open/ unprocessed/ lose Yogurt The data provided in this report are from various private and governmental data sources and focus on different areas of the market. Therefore the figures may not be directly comparable. The main focus of this market study will be on the refrigerated yogurt segment.

Launch of new product at Engro Foods Engro Foods Limited is now proud to launch its new dairy product OLGURT. It is a fresh yogurt, made with pure ingredients which add up to a healthy life and a healthy living. In competition of nestle and haleeb, olgurt will be launched at the same platform. PRODUCT REVIEW: Brand name Brand name plays a significant role in the success or failure of any product. Being in accordance with prevailing branding approach of Engro foods, the new product category of yogurt would be marked as Olgurt. The philosophy behind the brand name expresses Ol as the reputation and association with OLPERs Milk and also transferring the good will and brand loyalty of the Milk brand to the newly launched yogurt brand. To make the brand name preserve in the minds of consumers, the brand name is formulated in such a way that it comes hand in hand with the good i.e. yogurt. Furthermore this would also enhance the OLPER product categories as there is already Cream, Milk and Ice-Cream with the same brand name, so adding yogurt would only enhance the brand leverage in terms of recognition, recall and association.

Logo & Tagline

Tagline Yogurt from your favorite milk! OLPERs milk products follow a particular pattern of logo but with some innovations; likewise the yogurt would be promoted with a similar logo pattern with a difference in color and product type. The color selected as a base for the product as well as logo is green. The reason for selecting green color is the association of culture and health with the brand. Pakistani culture has a high importance for the color green in it because of the nationality factor, and at the same time green color represents heath and nature so this would serve a dual purpose of association with culture, health and nature. The usage of milk white striking in writing O of olgurt is to portray freshness of yogurt as well associate it with Olpers Milk.

Packaging Packaging is the first point of contact with the brand (and its manufacturer) for a consumer good. For many products, the packaging is even more important than the physical good it contains in terms of cost and importance to the consumer. Previous research has shown that consumers not only buy products for the functional utility to transport the product from the retailer to their own home, but also for the symbolic meaning the products posses and the ease in usage and preservation. The retailers are the one that decides to have the manufactures product in the store. It is crucial for the retailers that the packages are easy to handle, should store conveniently and sellable. Fast Moving consumer goods like Olgurt are low involvement products, since consumers do not extensively search for information about brands. This implies that packaging is the largest source of information about the product; therefore, the packaging strategy for FMCG companies should be at the forefront of a brand strategy and should take more of a brand-building role in the marketers communication mix. Acknowledging the above specifics, the Olgurt packaging is designed to be fully purposeful with storage convenience and highly attractive. The container has a seal which provides ease in usage and to preserve. Olgurt will be launched in the following sizes:

Plain Yogurt 400 gm pack Plain Yogurt 190 gm

USP and POSITIONING:

The USP of our product is Fresh taste and health Olgurt is positioned as a fresh and tasty yogurt made by the richness of pure natural ingredients which provides you with a healthy life style.

ADVERTISING MESSAGE: The Advertising message of Olgurt would be Zaiqa sehat ka! REASON TO BELIEVE: Olgurt with a tagline yogurtfrom your favorite milk! Reflects the idea of promoting yogurt as a healthy living with taste. Olpers have been in the market for 6 years now, and with the same richness and pure freshness we are launching Olgurt. Acceptance of people may take time but we believe in it and so will our consumers.

Competitive Landscape
There are only 3 major players in the processed yogurt category. Their names are as follow; 1. Nestle Fresh n Natural 2. Haleeb Daisy 3. At Tahur Prema Nestle is presently the market leader with its Brand Nestle Dahi followed by Haleeb and then Prema at a national level. Besides these there are foreign brands available such as Danone, AlMarai, Al-Rawabi, etc.

Competition Profile and Market Share

Nestl Dahi

Haleeb Daizy

At-Tahur Prem

Company

Brand

Total Sales

Dahi/ Raita Total Sales Share 44% 29% 27% 100%

Market

Nestl Haleeb At-Tahur TOTAL

Fresh n Natural Dahi Daizy Dahi Prema Dahi

Rs. 41.15 bn Rs. 32.86 bn Rs. 18.14 bn

Rs 8.8 bn Rs 5.9 bn Rs 5.4 bn Rs 20.1 bn

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NESTL Fresh n Natural

Under this brand three product varieties are offered Dahi, Slim Dahi and Raita. The brand again just like Nesvita provides the benefit of help improve digestion. The target segment is urban health conscious people. The positioning is little different in the sense it focuses on its high calcium content and rich & creamy taste. The ads feature the same theme and end with the tagline Yeh dahi hai sahi. NESTL Fresh n Natural Slim Dahi is the low fat variety and positioned as the tasty, low fat way to a fit and healthy lifestyle and has the same tagline as NESTL Slim Milk Keep fit. Look good. NESTL Fresh n Natural Raita Bhuna Jeera again provides the benefit of improved digestion by using Dahi and Jeera together. It can be used as base for raita. The targeting & positioning of this product variety is again same as that of the NESTL Fresh n Natural Dahi. Nestle Pakistan have the highest sale contribution from the sale of dairy items in Pakistan. They are the current Market leaders in processed Dairy category in Pakistan. Dahi/ Raita bring 19% sales to the company and there is a growth trends of 2% compared to the previous years. Currently Nestle owns 44% of the Processed Dahi/ Raita market share in the 3 competitors; they have used aggressive marketing and brand association with all their brands. And further more they are also the only multinational firm in the market providing processed yogurt in Pakistan.

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Haleeb Daizy
Daizy Plain Yogurt meets the highest quality standards and gives consumers unmatched quality, freshness and taste with every spoonful. Offered in 450g, 200g and 900g packing, with a freshness seal that keeps the product attributes fresh throughout its life. Shipping units: Plain yogurt 450grams: 12 units/tray Plain yogurt 200gm: 24 unit/tray Zeera/mint raita 250gm: 24 unit/tray Raita 250gm: 24units/tray

Currently Haleeb owns 27% of the Processed Dahi/ Raita market share in the 3 competitors; they have used aggressive distribution and brand association with all their brands. And further more they are also they are the multi-domestic in their products.

At Tahur Prema
Yogurt is not just a delicious dessert, it has great benefits. It is an excellent source of protein, calcium and vitamin B12. Yogurt has even more calcium and protein than milk. At-Tahur, with a motto to bring purity back to your lives, now introduces Prem Natural Yogurt. This 100% natural yogurt is prepared from 100% Australian Cows Milk and Active yogurt culture; and is free from preservatives, additives, artificial sweeteners, gelatin and other stabilizers. Yogurt at its purest, Prem Natural Yogurt gives you an original and traditional grainy texture and unsweetened taste of pure and free from chemicals DAHI, hence it can be consumed as yogurt is intended to be in all manners.

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 Competitors USP
-Nestle: Fresh and Natural Dahi -Haleeb: Pure -At Tahur Prema: Bring Purity back to your lives.

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SWOT Analysis
Strengths 1. Olgurt will be launched under the umbrella of Engro foods Pakistan which already holds high market share. 2. Olgurt is a high quality product with best tastes to suit the Pakistani culture. 3. Line extension of flavored yogurt. 4. Availability. Weaknesses 1. Because it is a new product, it will take time to capture the market. 2. Preservation. 3. Short term expiry. Opportunities 1. Increased consumption of processed yogurt. 2. Exploring new geographical areas local as well as global. 3. Huge market. Threats 1. For Olgurt, it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. 2. Substitute product being lose Yogurt is available and acceptable by masses. The psychology of people can actually impair the success of Olgurt. 3. It is important that Olgurt comes up to the expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications. 4. Currently the dairy product success in Pakistan depends upon 2 main factors, Quality and Distribution. Engro would have to invest heavily in development of the proper distribution network to avoid this threat.

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MARKET SEGMANTATION: Geographic Segmentation: Country: Pakistan City: Karachi at present Since we are launching a new product we want to first observe the reactions and acceptance of people for our product.

Demographic Segmentation Age: 8 60 years Through market research we got to know that people belonging to 8-60 age groups prefer to eat yogurt (separate as well as with food items) Gender: Male and Female Education: Higher secondary to post graduate. It is important to be educated in order to be aware of the fresh, healthy and preserved yogurt. Income: 30,000+ In order to meet the daily basic requirements people with less income level would not go for packed yogurt. Psychographic segmentation: Social Class: Middle class and upper class. Personality: health conscious. Hygiene conscious. Benefits: 1. The product is healthy. 2. It is a clean and hygienic product. 3. It is affordable. 4. It does not get affected by humidity. 5. Fresh all day.

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User Status: People who are already using Olpers products will be convinced with our promotional activities and buy our product. Usage rate: Twice a week, or more Loyalty Status: The loyalty status will be increasing because it is an additional product of Olpers. People already using Olpers would be attracted to its yogurt.

Attitude toward product: We are focusing on creating good image and definitely going to have a positive attitude Target Audience: 1. People belonging to age group 8-60. 2. Who are health conscious and care about hygiene 3. People having income level of approx.30, 000 or more. 4. People who have a healthy life style.

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Marketing Mix

Product

Place

Olgurt
Price

Promotion

Product Olgurt is the brand name of the product of Engro foods, yogurt. Yogurt is a dairy product produced by bacterial fermentation of milk. Fermentation of lactose produces lactic acid, which acts on milk protein to give yogurt its texture. It is rich in calcium and protein and is considered to be very healthy. . Many people, who cannot tolerate milk, either because of protein allergy or lactose intolerance, can enjoy yogurt. The culturing process makes yogurt more digestible than milk. As more people are becoming aware of the nutritious value of yogurt as it is one of the source to be hydrated in warm summers. Yogurt and butter milk (lassi) are traditional variant in Pakistani diet and a very important ingredient in cuisine as well. Olgurt is the perfect addition to the rich local taste and cuisine. Full of pure dairy goodness, it brings all the benefits of milk along with active live cultures that aid digestion. Packed full of delicious nutrition, Olgurt is rich

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with all the goodness of yogurt, and is hygienically packaged to assure absolute health and safety.

Line Extension:
We are coming up with flavored yogurt as line extensions of our yogurt. There are four different flavors to enrich the taste and freshness of yogurt. 1. Strawberry 2. Peach 3. Mango 4. pineapple

Price Engro Foods Limited 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. A good competitive pricing strategy encourages customers to patronize one store over another. Engro foods have similar prices as of its competitors. However, Olpers Milk was launched with the price skimming strategy. The successful market penetration of Olpers Milk then encouraged Engro foods to launch products like Olpers Cream, Tarang Whitener, Olpers lite Milk and Omore Ice-cream under competitive pricing strategy. The main benchmarks of Engro foods products pricing are competitive to Nestl foods products prices.

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Competitors Brands Yogurt Prices

Product type / Brand Plain Yogurt 400 gm Plain Yogurt 125/200 gm

Nestle Dahi Rs. 60 Rs. 25

Haleeb Daisy Rs. 52 Rs. 30

At-Tahur Prema Rs. 45 Rs. 27

Considering the market prices, Olgurt will be launch under the competitive pricing strategy. Being the major competitor, Nestls prices are the benchmark for Engro foods prices. Price domestication can be an optimal approach for Olgurt as in Punjab and NWFP Haleeb and Prema are the market leaders with the prices lower than Nestle. Whereas, in Sindh and Balochistan, Nestle is the dominating brand. Therefore, Olgurt will be launched with the following prices:

Product type / Brand Plain Yogurt 400 gm pack Plain Yogurt 190 gm

Price (Rs.) Rs. 55 Rs. 35

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Place: We will be targeting Karachi with selected locations. We have divided Karachi into following towns. 1. Shahra-e-Faisal 2. Defence 3. Clifton 4. Gulshan-e-iqbal 5. Tariq Road 6. Bahadurabad 7. North Nazimabad 8. F.B. Area 9. Gulistan-e-johar 10. Saddar Further just to make sure that the product is easily available in the market, we would place it in the super stores. We would provide the stores with special shelf space. We would place our product at the posh area, from the observations we have noticed that these areas would have and cater demands for the packed fresh yogurt.

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Manufacturer

Engro Foods Limited Makro, Metro, Local whole Salers Naheed, Imtiaz, Chase up, zam zam Mass Market

Whole Salers

Retailer

Consumer s

Promotion We have made a promotional plan that includes both print and electronic media. Along with these advertisements we have provided the stores with our own shelf spacing for placing Olgurt yogurt. Before officially launching our product in the first week we would publish our teaser. Then we would publish our main ads which will be in series, every Sundays.

Promotion Strategy: Since our product is new in the market so we shall be using both push and pull strategy for first 3 months at introduction stage just to bring awareness at first. Then after 3 months well go for push strategy at growth and maturity stage to keep them reminding that our product is still in the market

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Print Ads: (2 months) (Colored) Newspaper Dawn Jang The News Dawn Jang The News Size Quarter page Quarter page Quarter page Quarter page Quarter page Quarter page Day Saturday Saturday Saturday Sunday Sunday Sunday Position Back page Back page Back page Back page Back page Back page Quantity 1 1 1 9 9 9 Price/ad 3,53,700 2,87,500 2,00,000 5,83,605 47,43,75 33,00,00 Total Price 3,53,700 2,87,500 2,00,000 52,52,445 42,69,375 29,70,000

Total: 1, 33, 33,020

Billboards: Location Shahra-e-faisal (Awami Markaz) Near Naheed Allah Wali Chw Boat Besan Signal Millenium Mall Express Way (near Iqra University) University Road (opposite KU) Size 60x20 Duration 1 month Price 3,30,000 Printing Cost Total Cost 25,000 3,55,000

60x20 60x20 60x20 60x20 20x30

1 month 1 month 1 month 1 month 1 month

2,50,000 2,90,000 3,00,000 1,25,000 1,10,000

25,000 25,000 25,000 25,000 15,000

2,75,000 3,15,000 3,25,000 1,50,000 1,25,000

60x20

1 month

1,60,000

25,000

1,85,000

Total: 173, 00, 00

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Radio: (1 month) Channel FM 89 Duration 20sec Time slot 7am-10am 5pm-6pm 8pm-10pm 8am-10am 6pm-7pm 10pm12am 7am-10am 4pm-6pm 8pm-10pm Whole week Monday to Sunday Monday to Sunday Monday to Sunday Cost/min 2950 frequency Total Cost/month 2,65,500

FM 91

20sec

1500

FM 96

20sec

2100

4 2 3 3 1,20,000 2 3 3 1,89,000 3 3 Total: 5, 74,500

TV Commercial (1 month) 1st week Channel Geo News Indus Vision ARY Digital HUM TV

Duration 30sec 30sec 30sec 30sec

Time slot 7am-10am 8pm-10pm 3pm-5pm 7pm-9pm 6pm-8pm 10pm-12am 8am-10am 8pm-9pm

Whole week Monday to Sunday Monday to Sunday Monday to Sunday Monday to Sunday

Cost/30sec frequency 15000 125000 18000 30000 25000 50000 15000 115000

5 3 3 336,000 2 2 525,000 2 3 910,000 2 Total: 2,751,000

Total Cost/week 980,000

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2nd week Channel Geo News Indus Vision ARY Digital HUM TV

Duration 30sec 30sec 30sec 30sec

Time slot 7am-10am 8pm-10pm 3pm-5pm 7pm-9pm 6pm-8pm 10pm12am 8am-10am 8pm-9pm

Whole week Monday to Sunday Monday to Sunday Monday to Sunday Monday to Sunday

Cost/30sec Frequency 15000 125000 18000 30000 25000 50000 15000 115000 2 1 1 1 1 1 1 1

Total Cost/week 980,000 336,000 525,000 910,000 Total: 2,751,000

3rd and 4th week Channel Duration Geo News Indus Vision ARY Digital Hum TV 30sec 30sec 30sec 30sec

Time slot 7am-10am 8pm-10pm 3pm-5pm 7pm-9pm 6pm-8pm 10pm12am 8am-10am 8pm-9pm

Whole week Monday to Sunday Monday to Sunday Monday to Sunday Monday to Sunday

Cost/30sec Frequency 15000 125000 18000 30000 25000 50000 15000 115000

1 1 1 672,000 1 1 1,050,000 1 1 1,820,000 1 Total: 5,152,000

Total Cost/2weeks 1,610,000

Total Costing: Designing/Production Print Ads 80,000 Billboards 1, 00,000 Radio 30,000 TVC 60, 00,000 Posters (5000) 50,000 Shop Signage (30) 20,000 Printing/Broadcast 1, 33, 33,020 16, 30,000 5, 74,500 3, 00, 93,000 32,000 3, 00,000 Total Cost 1, 34, 13,020 17, 30,000 6, 04,500 10,654,000 82,000 3, 20,000

TOTAL COST: 32,269,020

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