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INTRODUCTION
Milk processing capacity increased by 200% to 200 million liters annually, will become the only company in Pakistan covering the entire milk catchments area. Already has the second largest chilled milk collection system in the country Distribution network. Forces in the external environment that affect company’s performance are, political, economic, social and technological. Nestle being the leader with 40 % market share. Typical packed milk consumers are the children. Therefore, an Engro food has a large number of consumers throughout the country. Engro Foods Ltd, a private firm that keeps about 22 % of market share in the milk food industry Pakistan. Established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx. 20% per annum Olper’s achieved peak market shares of 12.3% within 6 months of launch. Other products launched –Olper’s Cream, OLwell, Omore, Tarang, Tarkka ghee, Olfrute, Owsum and Dairy Omang. Plans to expand product portfolio. Olfresh is a new yogurt brand of Engro that “Eat fresh and be healthy” or “Worth yourself” Basically our product “Olfresh” lies in FMCG product categories. So it used by every person in daily life. Olfresh is a Branded yogurt is a new product in the portfolio of Engro in Pakistan because at that time only Nestle is providing it so, this brand has a scope of expansion because in this busy life where health is very important for people so safe and fresh yogurt has a good market because it is a daily life necessity. It also increase the product choice for health conscious and brand conscious people it will make customers more loyal to company because in this way company will respond more quickly to the changing needs and preferences of people and consumer. BRANDS OF ENGRO FOODS

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1.2 PRIORITIZATION
At Engro, we believe in garnering relationships with people of caliber and giving them diverse roles to prove themselves in. Our commitment to our people is long-term and sustainable as we continually do our bid by offering opportunities and rewards to those who excel. Career at Engro Fertilizers is a dynamic process of unending capacity building, learning and sharing fruits of company’s success. Making Leaders Engro believes in the boundless capacity of the human spirit. We regard that each of our employees has a distinct value that should be maximized to its fullest potential. New employees that enter the Engro club are quickly absorbed into initial positions depending on their interests and strengths. We provide on-job development and strong incentive to learn by experience and hard work. Finally, we create new opportunities and job roles for our most motivated and talented employees. We share the ambitions of our people and give them the right tools to take their careers forward to more challenging roles. Careers never stop growing at Engro; rather, every step opens yet more opportunities for growth and ambition. Nurturing Environment Work and enthusiasm go hand in hand at Engro. We prioritize matters of employee wellbeing and health while ensuring that our working environment remains safe and friendly for everyone. Our employee-friendly policies ensure work culture free of discrimination and harassment that keeps balance with family life and community involvement. Employees at Engro can also ‘personalize’ their terms and avail flexible work hours, off track policy or even work part time. As an equal opportunity employer, we encourage diversity and strive to provide convenient working conditions for women employees. Engro also has a very active ‘Women’s only’ intra-company network called WEAVE where our women employees can engage and build relationships across Engro’s many companies. Compensation and Benefits The Company’s remuneration package is aligned to be the best in industry. We balance remuneration between month-end salaries and long-term benefits including proper 23

they are its partners and shareholders –Engro employees can avail the unique opportunity of acquiring ownership shares in the company via ‘Employee Share Option Scheme’. End-of-year performance bonuses add up to total benefits and incentives hard work. Our alumni form a wide network of motivated individuals within Pakistan and abroad who carry with them strong sense of work commitment in their respective industries. This commitment to our people goes beyond traditional employer-employee relationship to a distinct sense of sharing responsibilities and successes. Alumni People who join Engro find themselves part of a large community of diligent professionals who share common values and desire to succeed. EXTERNAL AND INTERNAL ANALYSIS 2.medical coverage and retirement plans for all employees. For us. Nestle Pakistan aims at growing into a number one food company in 23 . In line with the above objective. The people that make Engro Fertilizers are not just company’s employees. c a p i t a l e f f i c i e n t a n d p r o f i t a b l e l o n g .1 COMPETITIVE ANALYSIS The strategic priorities of Nestle Pakistan are claimed to be focused on delivering shareholdervaluethrough t h e a c h i e v e m e n t o f s u s t a i n a b l e . 2. Formal events at Engro further strengthen and structure alumni relationship with the Company.t e r m g r o w t h . This connection is sustained even when professionals leave Engro to work at other capacities. which gives Engro its strong performance driven culture. The informal alumni connection at Engro is meant to allow professional networking across many different industries that allows our alumni to avail new opportunities. Improvements in profitability would be achieved with due respect to quality and safety standards at all times. true potential for personal growth is met when individuals are respected for their decisions.

Nestle focused more on advertising. 23 . which would drive growth through innovation and renovation.Pakistan in the shortest possible time with the unique ability to meet the needs of consumers of every age group from infancy to old age. marketing and sales departments. B u t o n t h e o t h e r h a n d . Keeping new players such as Olper’s. Perhaps this is the reason that it in spite of being a multi-national has been well accepted in Pakistani culture. On the other hand Haleeb has a market share of 28%. Haleeb having their own suppliers so the raw material cost is bit low. Nestle maintained its value of gross profit margin around or above 30% to ensure that it has a s t r o n g c o n t r o l o v e r i t s c o s t s . Haleeb faced a bit of down fall when Olpers introduced. a n d t h e e f f i c i e n c y o f p r o d u c t i o n . The major contributor is its appropriate strategy particularly its relationship with the social and environmental sectors. And Engro foods having 21% the major contributor toward this growth and development are human resource. and the old ones like Haleeb. 2. through development of a large variety of food categories of products with highest quality.2 KEY SUCCESS FACTORS Following are the key success factors that need more consideration from us to monitor in order to succeed in the market. for nutrition and pleasure. There are ample chances of its survival in future. Special training programs have been designed for employees at each level to keep up with and develop this vision. Nestle have been experiencing a constant increase in cost with raw material contributing the larger part of this increase. The study concludes that Nestle has a significantly high growth rate (36%) and has grown and developed at a high pace in short span of time. N e s t l e trained work force.

Our main concern is that to provide a quality product with reasonable price. so it is necessary that cost of production should be under control. Taste Taste is also very important factor to be considered all the time of product life. 23 . Our research shows that people prefer to buy it on the bases of healthiness and quality. Otherwise it is very difficult for me to provide a comparatively low price substitute. Price Price is a very important factor for success almost in each industry and sector. it is necessary to accomplish high standard of quality on continuous bases.Quality Quality is a very important attribute in order to survive in the market. Companies are very care-fully in selecting the price for the product by considering its target population. Because many people think the taste of organic sugar is not good so it is very necessary to improve it. So. Cost We want to provide a low price substitute of loose yogurt to market. Our personal research about branded yogurt proves this fact. According to research people gives importance to taste while they decide to by organic sugar. People give importance to quality. Hygienic Hygienic product is very important and critical success factor for our product because we try to differentiate my product from currently available yogurt on the bases of hygienic factors.

23 . Engro’s back Olper’s is a brand of ENGRO foods. IT and infrastructure business. It can also distribute the brand through better channels because of its long term relationship with distributors in the agriculture sector. ENGRO foods can easily afford research and development costs in order to introduce new products.2. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry. Mindshare. ENGRO is a well established brand name in Fertilizer. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company.3 SWOT ANALYSIS Strengths 1. it has set up another milk processing plant in (Sahiwal) with an investment of Rs. 3. Third generation Plant EFL only. and other products of Engro has done a strong consumer & product research before and after launching the product. The farmers also won’t have to look elsewhere to sell their milk. Omore. EFL plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene. Strong Consumer & Product Research Olper’s. 2. Moreover. PR With farmer ENGRO has been interacting with the farmers for fertilizers and has gained quite a good reputation over the years. EFL has hired various global research partners like AC Nielsen. To develop its future portfolios. 2 billion (US $ 33 million). This is an added advantage and strength for the company because it will never be short of milk production. 4. has the third-generation UHT milk plant in the country. ENGRO is world renowned so it can easily attract foreign investors in backing it against other competitors such as Nestle. The brand is well known so customers will automatically have a brand association with Olper’s and its other products and see them as a premium quality product. JWT Asiatic and MARS marketing and advertising agencies. This means that consumers can relate their former image of ENGRO foods to Olper’s.

the talent. The brilliant marketing people at ENGRO Foods failed to analyze is that the market they are targeted the ad on.Weaknesses 1. Also. Increased funding by government Government has decided to increase farmers funding. the brand managers were focused on. 2. 3. Half naked people have been shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell. Opportunities 1. Tetra Pak is the only option available to EFL for packaging because it is having monopoly in the packaging sector in Pakistan. Milk collection & distribution cost As EFL do not have its own dairy farms so collection and distribution of milk increases the cost and it also increase the chances of milk getting spoiled because of increased traveling time. 4. This is an opportunity for ENGRO foods because previously due to weather conditions and other reasons there was lots of 23 . Olwell TVC Olwell ad which is based on Western life style. Due to this reason. situations and locations connects well with the ad to give Olwell a premium positioning. is Pakistan. religious beliefs and cultural values. making an ad that should give the brand the most premium look and feel amongst the target consumers but on the other hand they were least bothered about the ethics. who have strong religious beliefs. Moderate Milk Quality EFL is not having its own dairy farms. Packaging EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. When making the ad. it largely collect loose milk from farmers and which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices. Tetra Pak can charge them higher and it would increase the production cost. In this ad they are creating associations with the brand through the stripes. which is a highlight of Olwell packaging. where practicing Muslims reside.

from a total herd size of 50 million animals (buffaloes and cows). country’s annual milk production is expected to grow at an additional 3 billion liters in the next few years. A big field of business is in it having vast consumer market. 5. Bottled water As per its major competitor Nestle bottled water is a major opportunity because now a day people are facing problem of unavailability of clean water. Therefore there will be an opportunity for accelerated growth. 2. 23 . This will ensure the increase in the consumption of processed milk instead of lose milk and so will in turn lead to increase in sales for the company. Increased consumption of Processed Liquid Milk Competition may create opportunities for the company because each competitor in the milk industry wants to increase penetration of processed liquid milk and so they will create awareness for consumers through different advertising media. Third largest producer of milk Pakistan is the Third largest producer of milk in the world with a total production of 32 billion liter of milk a year. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. 6. Generating need in niche market Niche market is the major opportunity for Engro as it would be as a status symbol. Livestock accounts for 46. whose value is more than that of the combined value of wheat and cotton.8 percent of the GDP. Due to the steps taken by the government and private sector.8 percent of agricultural value added and about10. while catering the upper middle and middle class as well. Awareness Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.wastage of milk but now that can be reduced as farmers will be better able to store milk for longer time periods. 4. 3. This is quite an opportunity for ENGRO foods as there is lot of growth in this part of the sector.

this fact is also applicable because GST is also imposed on food items 3. When we talk about our direct competitor we see there is one direct competitor who producing similar product as we are going to produce that is Nestle that have already a branded yogurt in its product portfolio so our head to head completion is with Nestle and also with other loose yogurt producers who are in very large amount all over the Pakistan. For EFL it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. So in case of food item. Economic conditions The uncertainty of economic conditions poses a great threat. Competition Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitors. Competition seems to be getting tougher as a result of new players entering the dairy market. These brands have been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality.4 INTERNAL CAPABILITIES Engro clearly recognizes that to achieve its growth objective it must extend its internal capabilities to establish a large number of strategic partnering relationships. 2. “Embracingopeninnovationand newbusinessmodels 2. Additional general sales taxes and tough economic conditions of the country are reducing the purchasing power of the people. Importance of Strategic Focus within Target Benefit Areas 23 . Type Of Competitors There is two type to competitors one is direct and the other is indirect.Threats 1. It has embraced open innovation and works aggressively with strategic partners to co create significant new market and product opportunities.

It has identified target benefit areas that relate to nutrition. They started processing milk by offering an attractive brand Olper’s.” 3.1 Strategic Planning and Marketing Expansion In order to meet the requirement of product demand and also keeping in mind the restriction of government in Punjab region ENGRO management find way to solve this is in the capable way and they have stated a project of installation of a fertilizer plant in Sadiqabad Sindh. In industrial area outsideLahore near Mureed-kay Engro is also installing a rice plant. and taste.Engro has a very clear framework to screen new opportunities. Building partnerships based on trust and goodwill Engro has developed an internal culture based on a “sharing is winning” philosophy and recognizes that big growth opportunities can only be co created with partners if the relationship is based on a strong foundation of trust and goodwill. Related Diversification: 23 . Importance of program management and discipline The number of discussions at various stages in the partnership life cycle to drive the growth Engro is trying to achieve is only possible with strong program management capabilities and rigorous discipline build into the decision making process. Unrelated Diversification At its start it was ENGRO CHEMICAL and after that they found opportunities in FMCG (fast moving consumer goods) industry. Sales Management Practices 3. In order for any idea to be pursued it must be strategically aligned with one of the identified target benefit areas. compliance and quality. Engro have now planned to start rice plant in Pakistan.

Sales grew mainly because of higher sales of its tea whitener (Tarang) and a new variant Dairy Omung (catering to budget conscious society of the country). which has outperformed the market by 93 percent year to date. Engro Foods Limited is a growth story at local bourse. whereas the rest of Rs 6. a growth of 100 percent with net profit margins improving to 5 percent.7 billion for expansion in 2012.4 billion in 2011.7 billion and a loan of Rs 5 billion. the company is also planning to enhance its North American operation by launching ‘paratha’ and rice products. Furthermore.7 Billion The expansion plan comprises investing Rs 2 billion in the powdered milk business.7 billion will be invested to acquire more livestock. The company is continuing with its aggressive growth strategy and plans to invest further Rs 8. expand dairy capacity and cold chain infrastructure development. Dairy and juices segment reported hefty earnings of Rs 1.4 billion in 2011 as the segment is still in its growing stage and much is being spent on the marketing of the product so as to create the brand name.Engro was playing well in milk industry and they wanted to expand their business.6 billion and gained market share to 24 percent from last year. Engro Foods are 23 . It will be financed by a mix of internal cash generation of Rs 3. For thisthey did related diversification and started an ice cream with a brand name of Omore’. Expansion Plan of Rs.8. However. EngroFoods Limited plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene. the segment reported a loss of Rs 0. the details of which were yet to be disclosed. The ice cream business (Omore) witnessed an increase of 62 percent in its revenues to Rs 2. analysts said adding the company was planning to introduce new products in the UHT and the ice cream segment where the emphasis would be on the products that would be new to the Pakistani market. Quality Improvement Engro Foods Limited only has the third-generation UHT milk plant in the country.

They had to provide best quality milk at a competitive price. Backward Integration Engro started their own collection centers in different town and villages around the country. For this they use print media and television ads. They use promotions and comparatively low price to capture high market share. They promoted their products as a part of our culture. Porter’s Five Forces Model 1. Penetration Pricing ENGRO FOODS had to compete with the giant player in UHT milk industry. Olwell white and purple.using TETRA PAK for its milk packing. These food companies are fearful of being 23 . Threat of New Entrants The average entrepreneur can't come along and start a large food company. This is best way to deliver quality milk to the consumers. Forward Integration In order to build confidence and provide the best quality products to the customer in time Engro Foods is not relying on third parties for sale and distribution and has its own sale and distributing network. Market Penetration To capture consumers of unbranded product producers Engro Foods are creating awareness among customers through different marketing campaigns. Engro Foods is using very attractive colors. For example in Olper’s red and white. Some companies have carved out niche areas in which they underwrite dairy supply. The threat of new entrants lies within the food industry itself. Attractive Packing In order to attract the eyes of its customer. At these collection centers they test raw milk from every small supplier to meet the quality standards. in Tarang many attractive colors are being used.

technical. and marketing resources. Companies focusing on niche areas usually have a competitive advantage. Economy of Scale: Economy of scale determines entry because they force potential competitors either to enter on large scale bases (a costly and perhaps risky move) or to accept a cost disadvantage. 23 . Engro foods achieved its breakeven in 2003. Availability of Substitutes This one is pretty straight forward. for there are plenty of substitutes in the food industry. Large clients have a lotmore bargaining power with food companies. and raw milk purchasing as well. new entrants in the pasteurized milk business may encounter scale related barriers not just in the production. financing. 2. so their bargaining power is low and company haveleverage to dictate implement its terms and conditions to distributors. but this advantage depends entirely on the size of the niche and on whether there are any barriers preventing other firms from entering. Backward Integration: Another reason of low bargaining power is that no buyer/distributor has the resources to start involve in backward integration. a. human. 3. There are large numbers of distributors. Capital Requirement: Competing in a new industry requires resources to invest. Bargaining Power of Buyers The individual doesn't pose much of a threat to the food industry. who are buying and distributing the product. At the moment Engro Olper’s have some threats like from new entrant’s Goodmilk product of Shakarganj food b. Large corporate clients like airlines andretailers pay millions of dollars a year. Another threat for many food companies is other food services companies entering the market. distribution. but in the advertising marketing.squeezed out by the big players. Most large food companies offer similar suites of services. Moreover. Production of packed products requires huge investment of financial.

In case of Engro foods so far nestle and hale are the only diverse rival and another players that has just joined the UHT Milk sector is Goodmilk. 3. because of the reasons. Bargaining Power of Suppliers The suppliers of food might not pose a big threat. Competitive Rivalry The food industry is becoming highly competitive. If anyone refuses to sell its product then company can buy it from others who are already willing to sell to company. In the long run. greater efficiency and better customer service will beat out competitors. a. Number of Suppliers: Raw milk is standard commodity and is available in the open market from a large number of milkmen. no doubt the competition between Engro foods and Haleeb is quite intense both are engaged in consistent homework just to break and attract the customer towards each other but Goodmilk is adding to the competition between the sector. we're likely to see more consolidation in the food industry.4. 5. Larger companies prefer to take over or merge with other companies rather than spend the money to market and advertise to people. food industry has become more like a commodity – an area in which the food company with the low cost structure. Importance of volume to Supplier: Suppliers also have less leverage to bargain over price because the company is purchasing the large volume of their milk and suppliers don’t have much option to sell milk to others.2 Personal Selling in Engro Foods 23 . especially when the foreign rivals have lower cost or very attractive products. b. Not only local but attempts by cross border competitors or companies to gain stronger foot hold in each other’s domestic market boosts the intensity of rivalry. The difference between one Food Company and another is usually not that great. As a result.

In companies like Engro foods the recruitment process is done by the HR department. As we know that mostly personal selling is used with business to business products and also for technical products. but it is one that will provide a pay back. competitor knowledge etc. It is about having a constructive dialogue with customers to listen to their needs. Face-to-face. promote product & company benefits on an individual basis. resolve any problems and get their feedback before clinching a sale. Recruitment is the process of finding and attracting of capable applicants for employment. So being very wise Engro has its limited personal sales force and rely on other useful tools of selling their products. Getting a sale is ultimately extremely important.3 Recruitment The quality of organization human resources depends on the quality of its recruits. Recruitment Policy of EFL EFL recruit employees through different ways like • Internal movement 23 . answer any questions.Personal selling is face to face interaction with one or more prospective purchasers for the purpose of making presentations. a sales person can build a relationship with the customerunderstanding their needs and feeding back this knowledge to the business to improve products. 3. The result is a pool of applicants form which new employees are selected. customer service standards. The process begins when new recruits are sought and ends when their applications are submitted. This is the most effective form of promotion because it allows your approach to be tailored to the needs of an individual customer. Employing a sales person is a costly exercise in the first instance. There is no need of a formal and costly personal selling team because it adds cost and decrease profits for FMCG manufacturers like Engro foods. answering questions and purchase orders. but the process involves a lot more than this. usually within 1-2 years. The advertising media and promotional activities are sufficient for the sales of FMCG products.

Writs-ins are those who send a written inquiry. EFL use online portal for the recruitment. 2. Internal Movement HR department become involved when internal job opening are publicized to employees through “Job – posting programs. which inform employees about opening and required qualification and invite qualified employees to apply. Customize Hunting EFL prefer foreign qualifier and students of LUMS. Both groups normally are asked to complete an application blank to determine their interest and abilities. Online – Portal Now today no body thinks anything without internet. 23 .• • • • Online – portal News paper Ads Walk ins & write ins Customize Hunting 1. Usable application are kept in an active file until a suitable opening occurs or until and application is too old to be considered valid. 3. 4. usually six months. In EFL. The internal movement recruits includes • • Job – posting programs Departing Employees In departing employees. Walk-ins and Write-ins Walk-ins are job seekers who arrive at the HR department in search of a job.com”. The EFL advertise their jobs on “rozi. EFL advertise on internet. EFL uses two techniques either buybacks and through out bit.

yearly bonus and medical facilities. EFL also gave provident funds. • • • • • • Test (aptitude) Interview (3to 7) Medical Evaluation Reference and Background check Offer Placement De-recruitment of EFL EFL do not de-recruit because our business is started newly and it only recruits new employees for the expansion of our business. EFL recently conduct the annual prize award function at Karachi in which they give the achievement awards to their employees and motivate them to work hard. 23 . Motivation Plan of EFL For the motivation of our employees. EFL uses both the monetary and non-monetary motivational tools to motivate their employees.Selection Procedure in EFL The selection procedure of EFL consists on 7 steps.

M By Manager of Respective Department By HR Manager Final Selection Joining 23 .CV acceptance Qualification Written Test If Qualified RJP Demand generation by respective department Experience 3rd Interview 2nd Interview 1st Interview Paned interview with G.

3000 and fro grade 20 and up it is Rs. The supplementary pay is special pay given by EFL to its employees. • • • • • • • • • • • Provident Fund (10% of gross basic pay) Gratuity (10% of gross basic pay) VPP (variable pay plan) (10% of gross basic pay) paid on yearly basis. Greater the performance greater the incentives for the employees. The second thing is the allowance. Basic Salary 2.  Salary  Incentives Salary The salary consists on following components. Supplementary Pay (23% of Basic Pay). Incentives/Allowances EFL gives incentives to the employees of the field.8000. Compensation cars Field cars + bike OPD cover Medical Hospitalization cover (50% by employees + 50% by EFL) Life Insurance ( 50% premium by employees + 50% by company) Death Benefits (12% of basic salaries) House Rent(4 gross salaries) Out breaks 23 .Utilities (10% of B. Home Rent Allowance (45% of Basic Pay) 3.P) 4.Rewards/ Remuneration The compensation programme of EFL consists on two parts. 1. Field based get incentive on the performance basis. Conveyance Allowance (10% of B. Benefits of EFL EFL gives the following benefits to its employees. The allowances are fixed from grade 11 to 19 it is Rs.P) 5. which are given to office based employees.

Employees Benefits after Retirement EFL is a private organization. • • • • Final settlements Provident Fund (10% of basic pay) Gratuity Pension Sales Territory Management Sales territory is the configuration of current and potential accounts for which responsibility has been assigned to a particular sales representative. and control of salespersons activities with the goal of realizing the sales and profit potential of their assigned territories. implementation. EFL provides following benefits after retirement to its employees. There regional head offices are • • • • • • Karachi Lahore Multan Rawalpindi Peshawar Gujranwala 23 . The head office of Engro Foods is located at Karachi. Territory management includes planning. Sales Territory Design of EFL EFL has two dairy processing plants that are situated at Sukkur & Sahiwal. so it not provides all benefits as provide by Govt.

This sampling is then applied to the whole segment. In each city they establish a distribution and retailer network. Sahiwal. A territory sales officer is attached with a distribution center. bhawalngar etc. but if there is gradual decrease in past years then the company has to make changing in marketing techniques to increase the sales of company. For example the Multan region includes Multan city. When Engro foods want to launch a new product then a market survey is conducted and opinion of the potential customers is obtained. preferences and demand. A DSM monitors the working of the three ASM. If there is any need of change in the product then survey is very helpful tool for the making product better and forecast the customer response. khanawal. Engro food s uses this technique to forecast the demand of its FMCG products on the basis of past years sales. 3.Each region includes many cities. This forecasting method is used for identifying demand of existing product in future. Engro foods also use many techniques of forecasting and some of them are discussed here Survey technique This technique is most appropriate for the launching of new product or entering in a new target market. arifwala. An ASM (area sales manager) monitor the sales of each city. pakpattan. Prediction market 23 . EFL establish its territories on the bases of geography and on the bases of the workload. It is the most important issue for every organization to predict the future demand and preferences of the customer to retain current customers and acquire potential ones. Time series forecasting This is also an important forecasting method used by Engro foods. If there is gradual increase in the sales then the company has to use same marketing techniques and plan to product more than the previous year.4 Forecasting in Engro Foods In simple words forecasting is predicting future.

A combination of two or more techniques is used to get better results. the HP department. Observational research: To observe the people in different settings. Uses of Performance Evaluation: It is used for the performance improvements. information inaccuracies. Engro foods do not rely on a single forecasting method. 3. average and measures of dispersions for major variables. Once all the information has been collected. job-design errors. the number of people buying the brand. it is further analyzed to extract findings from the data. their supervisors. placement decision. So these are main methods of forecasting used by Engro foods. 23 . Performance evaluation is about the employees performance and accountability. External challenges and for the feedback to human resource. this helps them to identify in-store opportunities and shelf-space that can be used. When it is done correctly. Equal employment opportunities.5 Evaluation of Sales Performance Performance Evaluation is the process by which organization evaluate individual job performance.Engro foods also use a method of predicting the market. staffing process deficiencies. Customer preferences are also predicted and planning is done according to changing trends of market. The researchers use different types of statistical methods such as frequency distribution. If there is downfall then the strategies are made to boost the sales of Engro products. training and development. employees. Focus groups Where they interviewed a diverse set of people to explore ideas about the brand and what more they want in the food sector to be available to people. compensation adjustments. They often employ the method of monitoring. and ultimately the organization benefit by ensuring that individual efforts contribute to the strategic focus of the organization.

In the first part at the start of the year.In companies. quarterly. promotion. monthly. the evaluation of sales personnel is based the target achievement. 2. semi-annually and on the annually basis. the performance evaluation is oriented to the improvement of the work performance of employees. the performance evaluation is done on the basis of “Performance Appraisal Development Process”. Performance evaluations are usually done yearly and use a standard evaluation form. In the sales department. The comparative appraisals are conducted by the ASM. These targets are based on weekly. promotion. It has two parts. In administration. 23 . They make the evaluation by conducting different performance test and observation. and also evaluate their performance through comparative Evaluation Approaches. they evaluate sales personnel performance by reviewing the field. the performance evaluation is called for when the decision on work conditions of employees. as well as to the enhancement of their capabilities on the ground of the adequate training programme and advising employees regarding behavior in the work environment. the employees himself define the objectives for the whole year and then lock these objectives to his/her supervisor and then start doing work on that. In the second part at the end of the year. They are useful for deciding about merit pay increase. rewards/layoffs are in. performance evaluation is frequently carried out for administration or development intentions. 1. and organizational rewards because they can result in a ranking of employees from best to worst. In EFL. the employees firstly define objectives for the next year and secondly performance evaluation is done by him before it present in front of supervisors. In the development intention. PADP in EFL In EFL.

• EFL is not having its own dairy farms.4. • The company should explore the market potential in a way. because sometimes this negligence has led to huge problems in the delivery of many products in some areas of the city. • Import and Export policies are changing rapidly in Pakistan this also affects the working on company. Diagnosis and Alternatives Following are the diagnosis and alternatives for EFL. • EFL should have check on the performance of the distributor. 23 . because import raw material and export products in other countries. it largely collects loose milk from farmers & Milk men through its milk collection centers. • The company should also develop an integrated awareness plan in order to aware the people about the quality of the UHT milk as compared to other pasteurized or loose/fresh milk. EFL needs to have their own Dairy Farm so that they can meet the increasing demand as their market share is growing annually & to have more quality milk procurement as well. which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices. so that it can utilize its full capacity in order to gain economies of scale in the production. • The activities like customer satisfaction day should be performed on regular basis so the company should know the feedback and satisfaction level of customers regarding the product and the image of the company.

as a bulk quantity is spoiled because of over producing and 23 to our recommendations for increasing sales they must follow the following . Recommended Sales Strategies Sales strategies are there to implement all the ideas to the business. • High technology is the basic requirement of dairy and food industry. Engro has a full fledge sales department which is responsible to make sales strategies.• Competition is also increasing with the entrance of new domestic players in the dairy and food sector and plans to increase investments by the already established companies. so first step is to satisfy their vendors. for this purpose an organization must have all sales. • There is a vast market of bottled water Engro should focus on that as well. The key to survival for companies in this industry is using high technology for quality and cost purposes. company and customer knowledge. The companies that are using latest technology have some cost benefits over the companies which are not using high technology. no doubt they are working in a very well manner that in last fiscal year Engro has captured 30% share of Nestle foods in packed milk product. • To some extent they are lacking in planning phase. 5. market. But according points: • Engro recently has decreased the prices of raw milk obtained from milkman which causes dissatisfaction in them and they would move towards others.

• No discount is offered on the products they must offer discounts on the products which has short expiry date to save the cost of reprocessing.engro.pdf http://www.com http:// html/Imran-Ahmad-Engro-Foods.com/doc/54873209/Engro-Foods-SC 23 .scribd.management has to incur cost on wastage of that. so proper planning and forecasting must be there. References www.