ENGRO CORPORATION

Analysis of Engro’s BCG Matrix and Relaunch strategies for Omung

Lassi
 Table of Contents

ENGRO CORPORATION..............................................................................................................3
ENGRO FOODS.............................................................................................................................3
BCG MATRIX................................................................................................................................4
Dogs.............................................................................................................................................4
Cash Cows....................................................................................................................................4
Stars..............................................................................................................................................4
Question Marks............................................................................................................................5
BCG MATRIX OF ENGRO FOODS.............................................................................................5
OMUNG LASSI FAILURE ANALYSIS.......................................................................................6
OMUNG LASSI..............................................................................................................................7
WHY IT FAILED?..........................................................................................................................7
Advertisement..............................................................................................................................7
Taste.............................................................................................................................................8
NEW BRAND IMAGE OF OMUNG LASSI.................................................................................8
NEW PERCIEVED VALUE OF OMUNG LASSI........................................................................9
RELAUNCHING OMUNG LASSI................................................................................................9
Positioning...................................................................................................................................9
Change in target market.............................................................................................................10
Change in product development................................................................................................10
Pricing strategy..........................................................................................................................10
Change in advertisement............................................................................................................10
Change in packaging..................................................................................................................11
Distribution strategy...................................................................................................................11
CONCLUSION..............................................................................................................................11

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ENGRO CORPORATION
Engro Corporation, earlier known as Esso Fertilizers, is a
Pakistani multinational conglomerate company with
subsidiaries involved in production of fertilizers, foods,
chemicals, energy and petrochemicals.  Its major
subsidiaries, Engro Fertilizers, which is one of the largest
fertilizer manufacturers of the world. Engro has invested in
a diverse portfolio of businesses across the verticals of
energy and related infrastructure, agricultural outputs, petrochemicals and telecommunication
infrastructure in over 50 years. As a holding company its subsidiaries include:

 Engro Fertilizers Limited

 Engro Foods Limited
 Engro Eximp Private Limited
 Engro PowerGen Limited
 Engro Polymers and Chemicals Limited
 Engro Vopak Limited

ENGRO FOODS
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has established

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state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production
facility in Sahiwal.

Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully
launched under the helm of Company’s dairy products. To support these brands and their highest
standards of quality, Engro Foods has invested heavily in milk processing and milk collection
infrastructure. With an acquisition of Al Safa – a fast growing and established Halal meat brand
– Engro Foods is now venturing into North American market starting from Halal Foods category.
The new organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC,
intends to aggressively grow the business in this market.

BCG MATRIX

The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical
representations of a company’s products and services in an effort to help the company decide
what it should keep, sell, or invest more in. The matrix plots a company’s offerings in a four-
square matrix, with the y-axis representing the rate of market growth and the x-axis representing
market share. It is a tool used internally by management to assess the current state of value of a
firm's units or product lines. The growth-share matrix aids the company in deciding which
products or units to either keep, sell, or invest more in. The BCG matrix contains four distinct
categories: dogs, cash cows, stars, and question marks.

 Dogs
If a company’s product has a low market share and is at a low rate of growth, it is considered a
“dog” and should be sold, liquidated, or repositioned.

 Cash Cows
Products that are in low-growth areas but for which the company has a relatively large market
share are considered “cash cows,” and the company should thus milk the cash cow for as long as
it can. 

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  Stars
Products that are in high growth markets and that make up a sizable portion of that market are
considered “stars” and should be invested in more. 

 Question Marks
Questionable opportunities are those in high growth rate markets but in which the company does
not maintain a large market share. 

BCG MATRIX OF ENGRO FOODS

Following is the portfolio planning model of Engro Foods. It is based on the combination of
market growth and market share related to the next best competitor.

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OMUNG LASSI FAILURE ANALYSIS

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OMUNG LASSI
Engro Foods introduced Lassi brand called Omung Lassi in mid of June 2012. Lassi is a popular
and traditional yogurt-based drink which originates in the Punjab regions of India and Pakistan.
It is made by blending yogurt with water and Indian spices. Traditional Lassi (also known as
salted Lassi, or, simply Lassi) is a savory drink sometimes flavored with ground roasted cumin
while sweet Lassi on the other hand is blended with sugar or fruits instead of spices.

They target all over the Pakistan, mainly urban areas. Because people in rural areas prefer to
make Lassi with their own hands. Engro used the electronic media, bill boards, internet, and
vehicles for promotion.

WHY IT FAILED?
After doing extensive research, we came to the conclusion that there were mainly two reasons
behind its failure.

Advertisement
Engro has just targeted young people for this product however Lassi is a drink which is loved by
elders and kids too. Whether young or old, it is a drink enjoyed by all age groups. The drink is
only aimed for young men and women and it is definitely not ‘pyar ka naya ilaaj’. Also the way

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of communicating message is not decent at all as they’ve associated their brand with a bit of
cheapness. How can Lassi be compared to love and also be the remedy for love at the same time?

Not only have they taken a long-established product, but also given it the wrong characteristics.
They’re targeting the age group whose prime objective in life (according to the proposed
strategy) is to find perfection in love. It’s not liqueur or an energy drink for the youth that they
can choose a specific target audience or even try to change the characteristics of the product
when it already has a deep-rooted image. Also, the ad doesn’t really tempt the viewer into going
to try the product.

Taste
Many people said that they don’t like the taste of Lassi, as it is different from the genuine taste of
a Lassi. The taste fails to satisfy the taste of costumers. During Pakistan/ India cricket match,
Omung Lassi was ordered in bulk quantity. Hundreds of students tried that out and just after
taking a sip or two, they threw it into the dustbin. Its taste is more like that of a Salted\Sweetened
Laban – a popular drink during summer and Ramadan in the Middle East.

NEW BRAND IMAGE OF OMUNG LASSI

Brand image is the perception of the brand in the mind of the customer. It is an aggregate of
beliefs, ideas, and impressions that a customer holds regarding the brand. Companies spend most
of their time, efforts, and resources in building their brand identity. They decide how their brand
will look, how should the customer feel when they contact with the brand, where should the
brand be located in consumers’ mind, and other associations.

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When researching the positioning of a product, consumers are often asked how they would
describe that product if it were a person. The company needs to position this Lassi as a part of
their daily life. As a symbol of thirst quenching and freshness. When any person thinks of
Omung Lassi, the first thing that would come to his mind is its freshness. This affinity between
the brand and the consumer leads to a high degree of loyalty and will make the purchasing
decision easier.

NEW PERCIEVED VALUE OF OMUNG LASSI

Engro food company Omung Lassi in which the perceived value of customers was determined to
decide exactly what Engro food should do in order to try and make this product Omung Lassi a
success even after official launch did not go as far as expected. The sampling unit was 100
people; the age of the unit of analysis varied from 17 to 25 years. Persons included in the sample
were consumers of Lassi. Price values are present in both shapes and sizes. Perceived values are
present in both sized or shapes, Value is based on consistency, size, and quantity. Don’t hesitate
to convince your consumers that your company has a better refining process, a lower carbon
footprint, or a bigger, deeper packaging than your competitor's brand recognition is clearly
not quite enough, and you need to have a brand to be your brand evangelists. The perceived
value or preference of the target audience is thus of the highest significance to any food
manufacturing company. Companies engaged in the production of new foods and the retention of
existing food goods must perform market research in order to collect accurate and homogeneous
information about their foods. Set up a blind taste check at a neutral venue, enabling consumers
to compare your product with that of their rivals. Figure out what brand they like and, most
notably, figure out why. Is it the flavor, the package, or what they think you stand for?
Establishing a statement on product positioning should be something to help you learn about
your whole brand experience. Be sure the community knows if the policy is green or whether
you help the preferred charity. Both of these aspects contribute to an improved perception of the
product.

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RELAUNCHING OMUNG LASSI
Positioning
Positioning is in the mind of the consumer and can be described as how the product is considered by that
consumer. When researching the positioning of a product, consumers are often asked how they would
describe that product if it were a person. We need to position this Lassi as a part of their daily life. As a
symbol of thirst quenching and freshness. When any person thinks of Omung Lassi, the first thing that
would come to his mind is its freshness. This affinity between the brand and the consumer leads to a high
degree of loyalty and makes the purchasing decision easier.

Change in target market

The market has been segmented by us geographically, demographically and according to the social class.
Geographically, we’d try only to target urban areas as this product won’t do any wonders in rural areas
because people there prefer to make Lassi by their own hand. Apart from that places like breakfast hotels,
railway station would specially be preferred and Engro would make sure to have their product at these
places everywhere. According to demographics, we’d try to target every age group because it is a drink
loved by everyone, elders and kids, not just by young men and women. So it is in appropriate just to
target young people. More importantly we’d try to make an impression on housewives.

Change in product development

As we find out during the research that people really don’t like Omung Lassi’s taste. As many compared
it with the Middle Eastern drink Laban, the production department has to change their way of
manufacturing it and to make its taste more like a rich Lassi. This is very important for the brand, as no
matter how much brilliant promotion a company does, if it’s product is not according to the expected
value by costumers, they are not going to buy it again.

Pricing strategy
As Engro’s product Omung Lassi has no competitors and since it follows the target market of middle
class and upper middle class people. It simply needs to follow cost-plus pricing. The profit would be set
to initial level to encourage the costumers to buy the product and try it out, and when its equity would
increase then we would slightly increase its price as well.

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 Change in advertisement
You don’t need rocket science for advertisement of a product like Lassi. Instead of the recent
advertisement that everyone called cheap during a survey from mostly middle class and upper middle
class people, we would base their marketing campaign around the fact that the drink itself is thirst
quenching and refreshing in this hot summers, and would try to communicate its healthy yogurt like
properties. Hence a tempting advertisement would be made targeting mainly people who has a fast life
and who travels a lot, and also those people who don’t have time to make it in home. They would prefer a
good quality product from a well-known brand like Engro Foods.

Change in packaging
Since Lassi is a dairy product and it is different from juices and other beverages, we think that square box
is not suitable for it. Lassi is more of an open drink. So we have changed its packaging strategy. Instead
of a square pack, a glass shaped round tetra Pak has been introduced by us. Now you could either drink it
with a straw or more preferably you could drink it by removing the upper cap of the tetra Pak which
would provide you real life-like scenario, as most of the people do not prefer to drink such a product with
a straw.

Distribution strategy
As Engro has a vast network of distributor all over Pakistan and it distributes the products along retailers
very effectively and time, so there is no need to make a change in its distribution strategy. They just have
to make sure about its freshness as it is a dairy product.

CONCLUSION
Engro Corporation is Pakistan’s biggest company with different businesses currently in operation
is also now recognized globally due to some of its global projects. Engro foods limited if the
subsidiary of Engro group. Their products Olper’s milk, Olper’s cream, Awsum fruit milk,
Tarang Tea and Omore ice-cream is purchased heavily by customers. Thus it is concluded that
Engro Foods should consider investing more in Omung Lassi for boosting the profits in future
growth, and to earn more market share and profits. They can use the profits to finance new
innovations in the product in order to increase product’s growth and market share. The retraction
of Omung Lassi from the market is a valuable step.

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