In the name of ALLAH, AR-Rahman, AR-Raheem.

Marketing Report on Segmentation, Targeting and Positioning.

Submitted to: Mr. Faisal Iqbal

Submitted by:Muhammad Rizwan MBA-B6-001Muhammad Wasim Hashim MBA-B6-029

Farina Sadiq MBA-B6-055 Muhammad Kamran Sajjad MBA-B6-047

COMSATS Institute of Information

Technology, Sahiwal

Acknowledgement

We are grateful and thanks to our Allah, Who is

the merciful and beneficent to help in conducting

this Report.

We dedicate this work to our parents and

persons who pray for our good future. In the

last, we thanks and also appreciate our

Marketing Instructor MR. FAISAL IQBAL,

whose keen interest and coordination get this

work completed.

Table of contents

Acknowledgement...............................................................................................................2Engro Foods’ History..........................................................................................................4Vision...................................................................................................................................4Core Values.........................................................................................................................4Plan of Action......................................................................................................................5

Product.............................................................................................................................5OLWELL Hi-Cal Lo-Fat (HCLF) Milk......................................................................5

Segmentation and Targeting................................................................................................7Segmenting and targeting the market for Olwell.............................................................7Geographic segmentation................................................................................................7Demographic segmentation.............................................................................................7Psychographic segmentation...........................................................................................8Behavioural segmentation...............................................................................................8

Positioning and Differentiation............................................................................................8Placement & Distribution................................................................................................9Promotion......................................................................................................................11

Engro Foods’ History

Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a

diversification process at the Engro Group. 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

company’s vision to pursue growth opportunities based on country fundamentals

and own strength.

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

1. Leadership

2. Innovation

3. Diversity and International focus

4. Quality and continuous Improvement

5. Open communications

6. Individual growth and development

7. Safety, Health and Environment

http://www.engro.com/our-company/

Plan of Action

In this report, we have described about the product of EFL’s “OLWELL. Company

is now introducing this Product in Sahiwal. EFL’s marketers focus is Olwell milk.

Company has segmented the market and narrated the market mix while having

Sahiwal market in mind. It would be beneficial for the company to launch Olwell

in Sahiwal city.

Our following report is aimed at examining the marketing mix of Olwell which we

are going to launch it in Sahiwal. Olwell company also make a plan to create

differentiation from the competitors. Company also decide to promote the product

after increasing the sale of the product.

Product

OLWELL Hi-Cal Lo-Fat (HCLF) Milk

Launched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the

richness of pure milk. It is an ideal choice for weight-watchers and heart patients.

It is also high in calcium content, which prevents osteoporosis.

Product line: ► Olper’s Milk

3.5% animal fat base in 250 ml, 0.5 liter, 1 Liter,

► Olper’s Cream

(40% fat)

► Olwell Milk

0.9% fat (low fat high calcium recipe) in 1 Liter

► Tarang Milk

Segmentation and Targeting

Segmenting and targeting the market for Olwell

It is difficult for any one company to engage in mass production, mass

distribution and mass promotion for its product. The coverage the mass

production through advertising and distribution channels is very costly.

Therefore, companies segment the market so that they can target the group of

customers who share similar needs and wants. Customers want milk full of

calcium, low fat, carefully processed, and good for health and bones. Keeping

these things in mind Olwell’s market has been segmented.

Geographic segmentation

Engrro Foods Limited has made segmented the market for each of its product. But in

the case of Olwell, EFL has segmented the market more carefully because it has

unique qualities among the product line.

For the purpose of targeting the company has divided the Sahiwal city into three

main distinctive parts named as Farid town and Tariq bin ziad colony, old civil

lines and rest of the city.

Demographic segmentation

EFL’s products are not bounded to any particular age, gender or lifestyle. The brand

is meant for all the users in higher upper or middle class families. Processed milk is

mostly used by upper class and usually lower class does not use it. The reason may

be that they are price sensitive or they prefer conventional milk. As far as upper

class is concerned, it can be said that they want a special kind of milk which is better

for their health too. And Olwell may be good choice.

With the Sahiwal perspective we can say that company has to segment the market

by keeping Sahiwal in view. If it comes to launch Olwell in Sahiwal, it should target

age group from 20 to 35 years. But for girls this age range can start from the age of

15 year. And gender does not matter a lot. Educated people are also segmented

by company because they are more conscious about their health.

Psychographic segmentation

On the basis of psychographics, factors such as personality characteristics, lifestyles

and values are considered at the time of segmentation. For Olwell, company has

segmented the market towards distinctive people, whose lifestyles is modern and

contemporary. For example the ads for Olwell mostly show people while exercising.

Secondly, they show a model girl in red dress, with smart figures. The EFL’s

products especially Olwell has been targeted at such persons. Many of the

customers will make their first purchase because they want to try something new.

As far as psychographic aspect of the Olwell is concerned, it should be targeted to

those Sahiwalians who wants to be distinctive and unique. Olwell is demanded to

those who are conscious about their health and want to use such milk which has low

fats.

Behavioural segmentation

Company targets regular as well as first time user in behavioural segmentation

stage. Olwell is not for special occasion but it is for special purposes like for

enhancing health. So, for Sahiwal, company is focusing to those customers who are

already using EFL’s products as well as those who has exposed to the

advertisement of it for the first time.

Positioning and Differentiation

Positioning involves designing the product and image that will occupy a distinctive

place in the minds of the target market. As can be seen, nestle (Nesvita) and Haleeb

(Skimz) have the largest profit margins and market share in the milk industry. Thus

the marketers at Olwell have decided to create its own unique image and then

strengthen the position in the customers’ minds. They have done this by taking a

number of following steps:

1. Olwell Packed in 6-layered Tetra Pak Brick Aseptic good packaging with

easy-to-open plastic cap, it comes with a 3 months shelf life.

2. Olwell in red color and is quite different and distinctive from the typical green and

blue packing used by other competitors.

3. Olwell is positioned to selected market segment who are keen for healthy milk. Its

low fat and high calcium property positions it a better choice for such people.

Tagline of any product helps a lot in positioning purpose. Tagline of Olwell is

This tagline gives the thought that this milk energizes the customers. And it is very

hard to give up it.

The marketers should use different positioning for Olwell:

a. They should use the attribute positioning for Olwell milk. The main theme of the

product should be that it has all possible attributes for health conscious people. It

has made it possible for those who wants to use milk without its fat contents.

b. They used the benefit positioning for Olwell. The product is positioned as delivering

the benefit of helping to reduce weight and for healthy bones.

Placement & Distribution

EFL has its distribution system in 80 plus cities of the country. Its products can

be seen in every small and big city. Distribution system of any company starts

from its suppliers. Which are farmers here. EFL has strong and close relationship

with the milk producers. It also claims to carrying out some poverty alleviation

programmes in villages where from it collects milk. This is the reason why it is

successful in becoming one of the main players in this industry. But all of this

discussion relates to EFL’s products.

And, here, our product is Olwell. Olwell is not distributed widely like other

products of EFL. It is because of its distinct positioning. When we want to

distribute in the Sahiwal city, those existing retailers will be right choice who have

EFL’s products. While focusing those areas which are specified in the

segmentation.

For better placement strategy , EFL has been successful. Handsome benefits to

retailers are inducing them to provide EFL’s products a proper shelf space. But in

Sahiwal, our focus should be related shops at College Chowk, high street, and

big stores, along with small stores too.

Bright and unique colours of its products make customers realize about its

existence. This is very crucial in stiff competitive market.

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.

In fact, Pakistan is one of the largest milk producing countries where almost 80%

milk is distributed through conventional means. And rest of the 20% market is

captured by many companies amongst which Nestle and Haleeb are

notable.Targeting of Olwell is such a market segment which is willing to pay extra for

some added contents in the product. Olwell has its competitors in the market named

as Nesvita, which also targets the same market segment

When it comes to the case of Sahiwal where we are going to launch the product,

Farid town and Tariq bin ziad colony should be our main focus. We are addressing

the price aspect of Olwell, so obviously segmentation under income consideration

will help us here. In the result we have got above mentioned two areas for our

purpose.

Promotion

As far as promotion of Olwell is concerned, simply TVC’s, print ad are important

choices. Any how, we suggest that they have to rely on print and electronic media for

promotion of Olwell.

In Sahiwal, EFL has to use billboards and cable TV for advertisement. It is seen as

very effective means to position any brand in the minds of people in specific area.

Recently, many advertisements are on aired on cable TV in Sahiwal. People

perceive, well through those ads. So same should be adopted here in Sahiwal, for

Olwell.

Display centres can be a good way to introduce Olwell in Sahiwal. In populous and

crowded areas of market, these display centres can attract attention of many

customers.

Events can also be organized in educational institutions, parks and other captive

environment to make awareness of Olwell.