Olpers Crystal Water(marketing plan)

April 8, 2023

OLPERS CRYSTAL WATER

ENGRO foods came up with the idea of adding a new product line to their already well established and long set of product lines to the point that they are still heavily promoting their product. We start by giving a brief history about Olpers and how it came into existence. We talk about the corporate structure and organizational hierarchy of ENGRO FOODS, its mission statement and the vision. We move further with its goals that it has thought about for Olpers and eventually launching Olpers crystal water in the market.

INTRODUCTION

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HISTORY AND BACKGROUND

MISSION

VISION

CORE VALUES

STRUCTURE

SOCIAL WELFARE PROGRAMS

SEQUENCE

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MR AKHTAR

SEGMENTATION

POSTIONING

BRANDING

SEQUENCE

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Mr. Amir AnwarMr. Amir Anwar

PEST ANALYSIS

CUSTOMER ANALYSIS

SEQUENCE

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Mr. MUNAWAR REHMANMr. MUNAWAR REHMAN

4 PS

MARKET GROWTH TRENDS

COMPETITORS

SEQUENCE

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MR. NAQASHMR. NAQASH

SWOT ANALYSIS

PORTERS FIVE FORCES MODLE

SEQUENCE

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CAPTAIN MUHAMMAD ZIA BASHIR KHAN

PROMOTION AND ADVERTISEMENT

PRODUCT LINE

DISTRIBUTION

FEED BACK AND ANALYSIS

SEQUENCE

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MISS SADAF AMIR

BASIC PRICING STRATEGY

COST EVALUATION

SEQUENCE

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MR. SYED TEHSIN SHAH

SEQUENCE

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BREAK EVEN ANALYSIS

PROFIT MARGINS

RECOMMENDATIONS

CONCLUSION

FAQS

SEQUENCE

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WATER FROM HEAVEN

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.

WE ARE ALL ABOVE OF HUMAN COMPANY PROVIDING A RESPONSE TO

NEEDS THROUGHOUT THE WORLD

MISSION

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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

1. Leadership2. Innovation3. Diversity and International focus4. Quality and continuous Improvement5. Candid and open communications6. Individual growth and development7. Enthusiastic pursuit of profit8. Ethics and integrity9. Safety, Health and Environment

Departments

ADMINISTRATION

Efficient management of all administrative affairs

of Engro Foods (Pvt.) Limited is the job of the

Administration department. From legal matters to

general day-to-day operations of the office, the

Administration department ensures that all affairs

run smoothly.

FINANCE AND ACCOUNTS

The Finance and Accounting departments at Engro Foods

are responsible for the total financial management of the

different businesses of the company. From the usual

accounting statements and sheets to risk and portfolio

management, the team ensures that every rupee coming

into and out of the Companies' pockets is properly

documented and audited.

HUMAN RESOURCE

The Human Resource department at Engro Foods (Pvt.)

Limited spearheads the recruitment process to ensure that

the finest human resource is taken on board at Engro

Foods. Resumes of candidates are carefully filed and

documented for current or future reference.

MARKETING

Consisting of leading marketing professionals of the

industry, who are graduates of top business schools of

Pakistan, the Marketing Department ensures that from

product need identification to product development,

launch and post-launch, all strategic decisions are

made based on authentic information and research.

MIS

The MIS department at Engro Foods

ensures that all automation is running

error-free at all times. Regularly modifying

and updating the Company's accounting

software is also the MIS team's

responsibility

PRODUCTION

Modern technology is part and parcel of

Production at Engro Foods. The state-of-the-art

plant set up near Sukkhar .The bactofuge plant for

water processing is also bieng installed there.

QUALITY ASSURANCE

Quality Assurance is strictly followed in Engro

Foods. Qualified food technologists at this

department ensure that highest quality parameters

are adhered to through all steps of production and

that the products reach the consumers as per

promise.

BRAIN CHANGE

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SEGMENTING,TARGETING AND POSITIONING

WHY SEGMENTATION IS DONE?

It is difficult for any company to engage in mass production, mass distribution and mass promotion for its product.

Companies segment the market so that they can target the group of customers who share similar needs and wants.

SEGMENTING AND TARGETING THE MARKET FOR OLPER’S

The milk sector shows a market where consumers have homogeneous(similar) preferences. e.g. They want milk to be white, carefully processed, and good for health and bones. Keeping these things in mind Olper’s market has been segmented. So far company has introduced three new products: Olper’s milk, Olwell diet milk and Olper’s cream.

DEMOGRAPHIC SEGMENTATION

Olper’s 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.

Lower class wouldn’t want to buy the brand maybe because they are price sensitive or because they believe lose milk is better than processed milk and has all the nutrients that the processed milk lacks.

CONT’D

Therefore it can be said that Olper’s has been positioned as a brand for high income earners.

Due to the income factor involved it can be said that: Olper’s milk target a specific social class who are health conscious and concerned about their weight.

PSYCHOGRAPHIC SEGMENTATION

On the basis of psychographic factors such as personality traits, lifestyles and values, the marketers at Olper’s have segmented the market more towards;

i)Achievers who are goal-oriented and focused on their careers and

ii)Experiencers those who are seeking variety in the milk sector.

CONT’D

For example the ads for Olwell mostly show achievers who want to be successful, have high aims and are already doing quite well in their concerned fields. The Olper’s products have targeted experiencers because the company has given them a new set of brand and so many will make their first purchase because they want to try something new. Olper’s ads also target believers, traditional conservative people with concrete beliefs. The ads for Olper’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more.

BEHAVIORAL SEGMENTATION

Olper’s products have been segmented on the basis of benefits that consumers seek in the milk. In this case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well to feed the animals. The ads also show that consumers should increase their milk consumption for example they should use Olper’s with every Tea, they should drink Olper’s every morning and they should feed their pets with Olper’s milk everyday.

CONT’D

There may be some hard core loyal in the milk sector. Loyalty maybe towards such established brands as Nestle and Haleeb. There might even be switchers and shifting loyal in the milk sectors that are either price sensitive or want variety. As a result, the marketers need to find ways to make the hard core loyal attracted to the Olper’s brand and shifting loyal and switchers to convert into hard core loyal as well.

POSITIONING THE BRAND

Positioning involves designing the product and image that will occupy a distinctive place in the minds of the target market.

For example, nestle milkpak and Haleeb have the largest profit margins and market share in the milk industry.

Thus the marketers at Olper’s have decided to create its own unique image and then strengthen the position in the customers’ minds.

CONT’D

They have done this by taking a number of following steps:

1. Packaging of Olper’s milk and Olwell in red color and Olper’s cream packed in purple color are quite different and distinctive from the typical green and

blue packing used by other competitors. 2. The brand has been positioned as an all

purpose milk that is meant for everyone, especially for those who live life to the fullest, hence its tag line, “jo

dil khol kay jeetay hain unheen kay liyay hai Olper’s”

CONT’D

The marketers have used different positioning for Olper’s products:

a. They have used the attribute positioning for Olper’s milk.

The main theme of the product is that it is meant for all purposes without any user imagery. Olper’s ads also show

attributes of milk such as good for health. 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.

c. Olper’s cream is positioned as good for a specific use or application. In this case the cream can be used to make cake

icings and desserts look great.

“OBSTACLES ARE THOSE FRIGHTFUL THINGS YOU SEE WHEN

YOU FAIL TO FOCUS ON YOUR GOAL.”

CUSTOMER ANALYSIS

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Evaluating the Customers

According to the survey, there are only few people who are brand conscious. Otherwise all the customers want Cold water whenever they go to stores.Need is water and the want is cold water. After these characteristics, comes brand loyalty. There are very few people who go for brand name; the quality of water is same.

CUSTOMER ANALYSIS

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Buying habits of customer

Nestle has created demand for purified water with the slogan, Pure Life. After that people have developed their habit of going for Nestle. It is also because of massive advertising. But now many new brands are there and people have more choice available with them. It’s a trend that has been set by Nestle but new companies are also making profits in the same field.

CUSTOMER ANALYSIS

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PEST ANALYSIS

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“When the rate of change inside the

company exceeds by the rate of change

outside the company, the end is near.”

PEST ANALYSIS

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• POLITICAL LEGAL

• ECONOMICAL

• SOCIO CULTURE

• TECHNOLOGICAL

PEST ANALYSIS

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4 PS

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BRAIN CHANGE

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Product

Pricing

Promotion

Place

4 PS AT THE INTRODUCTION STAGE

Product:Product branding & quality level is established and we obtain trademarks.

Pricing:Pricing is based on penetration strategy to build market share.

CONT’D…

Promotion:Promotion is aimed at innovators and early adopters.

Place:Olpers is enjoying increasing demand

from all the areas because of their unique offerings and minimum prices.

CONT’D….

Quality:Awareness in market

Price:Price is being 10/- per bottle

Availability:Olpers has two distributors

MARKET GROWTH TREND

• Nestle• Askari• Spiral• Nation • Classic• Sparklets• Wah

COMPETITORS ANALYSIS

Cool

Aqua Safe

CONT’D…

LINKING-A-HEAD

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SWOT ANALYSIS

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• PRICE• AVAILABILITY• BRAND AWARENESS• ENGRO’S BACK• PR WITH FARMERS• CUSTOMER POSITIVE RESPONSE• STRONG CONSUMER AND PRODUCT RESEARCH• THIRD GENERATION PLANT

STRENGTHS

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• OLWELL TVC

• OWNING RED COLOUR

• PET BOTTLES

WEAKNESSES

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•INCREASED FUNDING BY THE GOVERNMENT

•INCREASED CONSUMPTION OF PURE WATER

•INCREASED AWARENESS

OPPORTUNITIES

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• NEW ENTRANTS

• COMPETITION

• COMPETITORS

• PERCEPTIONS AND PRICE DIFFERENCES

THREATS

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PORTERS FIVE FORCES MODEL

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INTERNAL RIVALRY•NESTLE

BARGAINING POWER OF SUPPLIERS•PRICES•HEALTHY COMPETITION

BARGAINING POWER OF CUSTOMERS•MORE CHOICES AVAILABLE•PRICE RANGES•AVAILABILITY•BRAND CONSCIOUSNESS


April 8, 2023


THREAT OF NEW ENTRANTS•MULTINATIONAL COMPANY WITH HIGH BUDGET•ANY NEW COMPANY WITH LARGE SCALE OF DISTRIBUTION CHANNELS

SUBSTITUES•TAP WATER• ALL THE AVAILABLE BRANDS•BEVERAGES•JUICES•HOME INSTALLING FILTERS


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CHANGE OVER

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Olper’s launch was, perhaps one of the most aggressive as far as processed mineral

water is concerned, with TVCs, print ads, radio commercials, billboards and plenty of

BTL (below the line) activities including direct consumer and shop branding activities. Due to this aggressive marketing campaign, the competition seems to be getting tougher.

ADVERTISEMENT

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PRODUCT LINE AND ADVERTISEMENT

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OLPERS CREAM

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Post Mortem

Color is soothing, caption is great. But the picture of the pastry is not attractive at all, the cream is

barely there. It should be mouth watering picture of a desert with lots and lots of cream on top. Life's a dessert is a boring statement. If you are a creative

team, you can for sure come up with something new and fun!

OLPERS CREAM

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OLWELL

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Post Mortem

The brand is positioned rather too narrowly, there are certain boundaries and cultural values that should be respected. Olwell ad is too much for anyone to digest and we have no options but to

switch the channel. Engro has over done it and to make things worse it’s not as clear and well

communicated .

OLWELL

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OLPERS MILK

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Post mortemGraphics of the ad are excellent except the body copy which is quiet overloaded with

information. TVC however, is excellent. The Signature ad (the product intro ad) was a 125 seconds ad with only 3 seconds of

branding! This type of advertising has never been practiced in OLPERS.

OLPERS MILK

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POST MORTERM

Color is soothing, caption is great. But the picture of the lady is not attractive at all, the

freshness is barely there. It should be a perspiring picture arising need for thirst and ultimately water. Water from heaven is an

interesting statement.


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TVCS

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See thisBelieve it or not we have

intentions to become globalOLPERS TEAM.wmv

HOPE YOU HAVE ENJOYED IT

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Engro Foods did exactly that was needed. They used their decades of PR with farmers and used it to

provide world-class supply-chain management for delivering the ultimate pure water in OLPERS.

Having kicked off simultaneously in 20 cities across OLPERS, the launch has been ambitious and currently

Olper’s is available in 80 cities across OLPERS. It reflects the company’s intention to become a big

player in the industry, both on a national and international level.

DISTRIBUTION

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Engro Foods Limited has its own dales and distribution network. EFL has divided OLPERS into five regions for distribution namely: Karachi, Lahore,

Islamabad, Peshawar and Multan. Due to an appealing color scheme, which stands out in the

clutter and thanks to the EFL’s strong relationship building and special discounts to retail outlets,

Olper’s has gained a proper shelf placement in the presence of competitors like Nestle and Aquafina

DISTRIBUTION

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In shortCo distribution framework

DISTRIBUTION

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After launching the product we will continuously manage the quality control, at part of the

organization itself and the feedback from the customers as well, we will achieve that with the

help of :

Publish media

E-voting and commenting cards

Electronic media

FEED BACK AND ANALYSIS

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TURN OVER

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BASIC STRATEGY FOR THE YEAR

Basic strategy for the year is to focused on brand

awareness. Although people already have the

information about the existence of Olpers but only

in bulk packages. Now the company aims to

launch pet bottle in specific areas with sufficient

promotion campaign.

PRICING STRATEGY FOR THE YEAR

Selling price to Distributor = Rs. 7

Margin given to the Distributor =Rs. 1

Price given by the,

distributor to the retailer = Rs. 2

Final Selling price = Rs. 10 _____________________________________

PLACEMENT STRATEGY

All major cities which are already covered by

Olpers milk distribution chain, and intending to be

global.

POSITIONING STRATEGY

Olpers will be offering more for less strategy

to the consumer. So the company will be

offering the same quality at a lesser price.

COST ANALYSIS

• COMPANY MARGIN 7-4/4*100=75%

• DISTRIBUTION MARGIN 8-7/7*100=14%

• RETAILER MARGIN 10-8/8*100=25%

COST ANALYSIS

• BOTTLE 2 RS.

• ELECRICITY 0.25 RS

• CAP 0.25 RS

• FILLING 0.35 RS

• WRAPPER 0.15 RS

• PACKGING 0.85 RS

• OTHERS 0.25 RS

. . . . .

• TOTAL PRICE 4 RS.

BREAKEVEN ANALYSIS

• SELLING PRICE= 7 RS.• VARIABLE COST= 4 RS.

• CONTRIBUTION MARGIN 3 RS. _____________________________________

CHANGE OVER

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BREAK EVEN ANALYSIS

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Selling price

Variable cost

Contribution margin

Fixed cost

Units per year

Unit per month

Cartons

Units per day

Unit per month

Unit per year

BREAK EVEN ANALYSIS

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PROFIT MARGINS

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Profit margin

= (unit produced - required units for break even)X CM

Monthly profit

Annual profit

PROFIT MARGINS

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Nestle – 50% share

Rest of brands – 50%

MARKET SHARE

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BRAIN CHANGE

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RECOMMENDATIONS

After the success which is highly expected of the product

development and research wing, we will further take the following

measures:-

•Occasion sought out

•Benefit sought out

RECOMMENDATION

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CONCLUSION

As many believe their ambition and ideas can move mountains (and in most cases

they can), the old saying still goes, “Rome wasn't built in a day”

With proper planning, time and resource allocation, it has been proven time and time again that great things are worth

great effort.

CONCLUSION

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Those, living with the OLPERS in OLPERS’s present a

depressing challenge for our socio-political gurus and

OLPERS managers. OLPERS in OLPERS can only be

alleviated by sharpening the human OLPERS by

improving literacy and investing in OLPERS, good

governance, community empowerment, long term

OLPERS growth, socio- political justice and real term

OLPERS culture. The international community under the

guise of Friends of OLPERS on 17th April 2009, at

OLPERS rallied to support OLPERS’s OLPERS program

with more than OLPERS billion in funding designed to

meet its immediate needs and protect expenditures on

safety net and human development initiatives critical for

OLPERS people. The amount exceeded initial

expectations and offers strength and opportunities to

OLPERS’s politico-OLPERS managers to march

towards OLPERS free OLPERS. OLPERS has been

experiencing many serious problems. It cannot be

expected for everything to be fixed overnight. It is very

important though to establish goals and set up priorities.

What is needed most is a stable OLPERS OLPERS,

basic essentials for all, access to proper education and

healthcare and social justice for all in stable social order

line in OLPERS’s present a depressing challenge for our

socio-political gurus and OLPERS managers. OLPERS

in OLPERS can only be alleviated by sharpening the

human OLPERS by improving literacy and investing in

OLPERS, good governance, community empowerment,

long term OLPERS growth, socio- political justice and

real term OLPERS culture. The international community

under the guise of Friends of OLPERS on 17th April

2009, at OLPERS rallied to support OLPERS’s OLPERS

program with more than OLPERS billion in funding

designed to meet its immediate needs and protect

expenditures on safety net and human development

initiatives critical for OLPERS people. The amount

exceeded initial expectations and offers strength and

opportunities to OLPERS’s politico-OLPERS managers

to march towards OLPERS free OLPERS. OLPERS has

been experiencing many serious problems. It cannot be























Those, living with the OLPERS in OLPERS’s present a

depressing challenge for our socio-political gurus and

OLPERS managers. OLPERS in OLPERS can only be

alleviated by sharpening the human OLPERS by

improving literacy and investing in OLPERS, good



















line in OLPERS’s present a depressing challenge for our

socio-political gurus and OLPERS managers. OLPERS

in OLPERS can only be alleviated by sharpening the







program with more than OLPERS billion in funding

designed to meet its immediate needs and protect

expenditures on safety net and human development

initiatives critical for OLPERS people. The amount

exceeded initial expectations and offers strength and

opportunities to OLPERS’s politico-OLPERS managers

to march towards OLPERS free OLPERS. OLPERS has

been experiencing many serious problems. It cannot be























healthcare and social justice for all in star. Those, living

with the OLPERS in OLPERS’s present a depressing

challenge for our socio-political gurus and OLPERS

managers. OLPERS in OLPERS can only be alleviated

by sharpening the human OLPERS by improving literacy

and investing in OLPERS, good governance, community

empowerment, long term OLPERS growth, socio-

political justice and real term OLPERS culture. The

international community under the guise of Friends of

OLPERS on 17th April 2009, at OLPERS rallied to

support OLPERS’s OLPERS program with more than

OLPERS billion in funding designed to meet its

immediate needs and protect expenditures on safety net

and human development initiatives critical for OLPERS

people. The amount exceeded initial expectations and

offers strength and opportunities to OLPERS’s politico-

OLPERS managers to march towards OLPERS free

OLPERS. OLPERS has been experiencing many

serious problems. It cannot be expected for everything

to be fixed overnight. It is very important though to

establish goals and set up priorities. What is needed

most is a stable OLPERS OLPERS, basic essentials for

all, access to proper education and healthcare and

social justice for all in stable social order line in

OLPERS’s present a depressing challenge for our socio-

political gurus and OLPERS managers. OLPERS in

OLPERS can only be alleviated by sharpening the







program with more than healthcare and social justice for

all in stable social order.

.

.

YOUR QUESTIONS ARE SIGN OF YOUR INTEREST AND OUR SUCCESS

GO AHEAD

ITS TIME FOR CHAGNE

!!!

Documents

Olpers Crystal Water(marketing plan)