NAME: WARDA ARIF

ASSIGNMENT NO: 01
ID: F22BBA013

BCG & ASNOFF MATRIX OF ENGRO FOODS

Cash Cow
Olper’s milk is the cash cow of Engro foods. It has a large market share but without growth. It
only has a substantial source of income for the business and generates a fair amount of sales in
the local market. Before Olper’s milk came into play, other brands like Nurpur, Good Milk
gained success in the markets. Today, Olper’s milk has a fairly high market share, and it is the
third largest milk producer across Pakistan (Gul, 2015). Both Olper milk and cream fall under
the same brand name. Olper can milk the cow with a strategic placement it the market, and it
can give a strict competition to brands such as Tarang and Omore. Olper may also increase its
current market share in the process. While Olper milk and cream do generate cash for Engro
foods, the market is not yet mature. The sales are not constant of Olper milk, and this can be a
cause of setback for Engro Foods. Engro Foods have been expanding it products and boosting
its sales with products in Pakistan. Recently it made its expansion in North America, with
targeting 7 million Muslims.

1.Milk Pak: – 45%

2. Haleeb: – 34%
3. Olper: – 21%
The growth rate is +4.

Cash cow is the products of engro food are high market share and low market growth. And
they are needed to be milk. The products of the cash cow are strong in the market. And the
business may be able to charge a high price. Cash cow are a very profitable had in the port folio
of engro foods. Because it provides a lot of cash to the engro foods so they can invest the same
exercises for Stars, Question mark , and dog category.
Olper’s has waken up the the competition. Milk pak responded with campaign of its own to
reaffirm the positive equity of its brand. Haleeb implemented a response as well. And olpers
starts cutting its market share after competition become fierce.

Engro Foods can use the profits to finance new growth and products in more industries.
The company has expanded its name to Engro Fertilizers in the past

Stars
In the BCG matrix, One can place two products. These are Omore and Tarang. These
products have a comparatively high market share in the growing industry. The market
share is increasing for both Omore and Tarang. The products are comparatively new in
the market, and the market share is not so well established yet. We do see a lot of
potential in the two products. An investment in these two products will be of use in the
future. An adequate investing strategy is to be used for constant growth, and the
company should invest in the product to grow the present level of market share. As the
want for tea-whiteners and ice cream increases, it will lead to more growth
opportunities for Engro Foods. One should keep in mind that the company is not
immune to competition from Walls, Yummy or every day. The star products of Engro
foods offer an expanding market share and opportunities to get ahold of the ice cream
and tea whitener market. One concern for the management of Engro foods and
representatives of Omore and Tarang is to make sure the two products will be a source
of strong sales, as the fluctuating number of sales can impact the revenues.

Ice Cream Market Share

1. Omore: – 38%
2. Walls: – 45%
3. Yummy: – 17%
The growth rate is 5%.

Tea Whitener Market Share

1. Tarang: – 51%
2. Every day: – 27%
3. Tea Max: – 22%
The growth rate is 8%

Stars has the engro food is high market share and high market growth but they must
work harder to maintain the lead in the market share to competitors of engro’s. Market
is growing quickly high by attracting the new customers in the business.
Engro Foods should consider investing more in Omore and Tarang for boosting the
profits in future growth, and to earn more market share and profits.

Question Marks
At the end of 2010, Engro Foods debuted the product Olfrute and launched the first
juice brand. Olfrute does have a low market share, but the potential is quite high.
Against the monopolist and strong brand name, Nestle, Olfrute is facing tough
competition. The sales and promotion of Olfrute show us that it can be a successful
product, but the product is yet to evolve. Since 2010, Engro Foods has launched flavored
milk as well, with the name Owsum. The experiences of Haleeb were better in this
department. Engro Foods still have a long way to go to succeed in the juice and flavored
milk departments. The juice and flavored milk market in Pakistan do not have too much
competition other than nestle. When Owsum was released in Pakistan, it had favorable
responses, but recently the sales are below average. With so many children forming part
of the flavored milk industry, there is a very high potential. Owsum and Olfrute have not
been able to maintain their position and gain revenues.

Juice Market Share

1. Nestle: – 49%
2. Olfrute: – 13%
3. Country: 25%
4. Haleeb: – 13%
The growth rate is 2%.
Question mark of the engro food has low market share and high market
growth.Question mark is also the capability to becoming the star category. This is just
because the market growth of engro is rapid.

Engro foods should investing heavily on Olfrute and Owsum to push them to the star
status, and avoid becoming a dog.

Dogs
Engro debuted a brand with the name Olwell, that had low fat and high calcium. The
main competitor Nesvita, by Nestle, was the main competitor and Olwell has not
managed to have a great run in the market. The sales have decreased even more in the
last three years. The strategic placement to promote sales of the product is highly
unlikely to work. Olwell has not gained its reputation in the market. Perhaps, extreme
marketing and discounts can boost the sales for a short period. The revenue that Olwell
gained for Engro foods is questionable. The outlook is mostly dull, and the target market
did not accept the product.

The Milk Market Share

1. Dairy Omang: – 10%
2. Milk Pak: – 45%
3. Dairy Queen: – 38%
4. Halla: – 7%

The products classified of engro food has low market share and low market growth.
For Engro foods, the retraction of Olwell from the market is a valuable step. The
investment may be stopped.