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Table of Content Company profile Engro Brands THEIR AFFILIATES Competitors Market segmentation Demographic segmentation Psychographic segmentation

ation Behavioral segmentation Product Mix PRODUCT o Tarang milk o Introduction o Features of product o Packaging PRICE PLACE o Sindh (Transportation, Storage and Whole Sale) o Punjab (Transportation, Storage and Whole Sale) o Baluchistan (Transportation, Storage and Whole Sale) o Khyber Pakhtukhuwa (Transportation, Storage and Whole Sale) PROMOTION o Advertisement Weaknesses in tarang milk advertisement: Suggestion for betterment of advertisement o Creating awareness o Budget

COMPANY PROFILE

Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd, which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer and chemicals. Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, it has established itself as a major player in the foods business. With the ever expanding milk collection network and processing facilities, the Supply Chain has geared them for the growing sales of their products. Engro Foods, a wholly owned subsidiary had its first full year of operations in 2007. The Company continued expanding with additions to brand portfolio, milk production and distribution capacities. The portfolio now includes four impressive brands; Olper's milk, Olpers cream, Olwell and Tarang. The companys milk collection network now boasts over 700 village milk collectors and 400 milk collection centers. Covering 2400 villages across Pakistan, the activities of the Company touch the lives of almost 51,000 farmers. An exciting new venture is the diversification of dairy portfolio into ice cream. Work has commenced full throttle for detailed engineering and market study with a view to launch of first ice cream in 2009. Also on EFL slate is the establishment of a dairy farm with milking expected to start in second quarter 2009. They believe that their recent successes will take them to their goals. To be one of the biggest playerss in the food business. Engros aim is to dominate the food business, and to achieve this they will settle for nothing less than the cream!

ENGRO BRANDS Olper

Olper cream

Tarang

Olwell

THEIR AFFILIATES:

COMPETITORS: External Competitor:


Nestle milk pack Haleeb Every day Good milk Nirala

Internal Competitor:
Olper`s Milk Olper`s Cream Olwell

MARKET SEGMENTATION
Demographic Segmentation:
Tarang milk should focus towards the youth, teenagers and young adults. The brand is meant for all the users in higher upper or middle class families being positioned as a brand for high income earners.

Psychographic Segmentation:
On the basis of psychographics, factors such as personality traits, lifestyles and values, the marketers of Tarang Milk should have segmented the market more towards healthy conscious trendy youngsters, who are ready to try out something new.

Behavioral Segmentation:
Tarang products should 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.

PRODUCT TARANG MILK


INTRODUCTION
Tarang Milk whitener launched in August, 2007. Sahiwal Plant commissioned, which will result in efficiencies in logistics cost and increase capacity to 700k LPD. Considering market opportunities, ECPL Board has approved additional investment of Rs 3.4 billion for: o expanding UHT capacity to 900K LPD o expanding milk powder capacity to 70K KPD o 1000 imported cows farm Total revenue in 2007 was Rs. 3.6bln (Rs. 1.5bln in 2006), and loss for the year was Rs. 620mln (2006 loss of Rs. 428mln), which was as per plan.

FEATURES OF PRODUCT:
Best Bioavailabe Proteins Tea Whitener Only Source Of Lactose

PLACE
Distribution is a crucial part of the value chain. If a product is promoted very well but there are issues in its availability, customers lose their interest very soon. Therefore a good distribution network is necessary for better promotion and sales. We will extend our distribution to all four provinces of Pakistan. Our plant is located at Sahiwal Punjab, therefore the easiest and cheapest distribution cost would of Punjab. On the other hand, Punjab is also the biggest milk market so it is an extra benefit earned because of our location. Our distribution plan is as follows:

Sindh Punjab Baluchistan Khyber Pakhtukhuwa

Stonehenge Logistics Pakistan Engro's Distribution National Logistics Duegro Projects and Logistics Pakistan

Sindh:
For Sindh, Stonehenge Logistics Pakistan will handle all the logistics and distribution services. Following policies and procedures will be followed. Transportation: On every Monday, the Engro's truck will offload the inventory in Stonehenge warehouse. The internal distribution within the city will be channelized and implemented by Stonehenge.

Storage: Stonehenge will store the inventory in their warehouses. Stonehenge will be responsible for the loss or damage of inventory.

Wholesale: It can give distribution rights to any distributor after the approval from the head office. The distributor will keep inventory worth Pkr 25,000 on hand. It will give weekly sales report to the head office.

Engro will not involve in any of the strategic distribution practices undertaken by Stonehenge.

Punjab:
Engro will by itself cater the distribution in Punjab. The company will follow a geographical distribution system for better distribution. The company will follow following policies. Transportation: The company car will directly offload the inventory at the distributor's desired location.

Storage The company warehouses in Punjab will be used to store inventory. Tarang will pay rent to the company on the usage of warehouses.

Wholesale It can give distribution rights to any distributor after the approval from the head office. The distributor will keep inventory worth Pkr 50,000 on hand.

Distribution There should be a diameter of atleast 3 miles between two distributors. Distributors have to be approved form the head office. The structure of distribution in Punjab will be as follows:
Regional Distribution

Company

City Distributor

Regional Distributor Regional Distributor

Baluchistan:
For Baluchistan, National Logistics Pakistan will handle all the logistics and distribution services. Following policies and procedures will be followed. Transportation: On every Monday, the Engro's truck will offload the inventory in National Logistics warehouse.

The internal distribution within the city will be channelized and implemented by National Logistics.

Storage: National Logistics will store the inventory in their warehouses. National Logistics will be responsible for the loss or damage of inventory.

Wholesale: It can give distribution rights to any distributor after the approval from the head office. The distributor will keep inventory worth Pkr 20,000 on hand. It will give weekly sales report to the head office. Engro will not involve in any of the strategic distribution practices undertaken by National Logistics.

Khyber Pakhtukhuwa:
For Khyber Pakhtukhuwa, Duegro Project and Logistics Pakistan will handle all the logistics and distribution services. Following policies and procedures will be followed. Transportation: On every Monday, the Engro's truck will offload the inventory in Duegro Project and Logistics warehouse. The internal distribution within the city will be channelized and implemented by Duegro Project and Logistics.

Storage: Duegro Project and Logistics will store the inventory in their warehouses. Duegro Project and Logistics will be responsible for the loss or damage of inventory.

Wholesale: It can give distribution rights to any distributor after the approval from the head office. The distributor will keep inventory worth Pkr 20,000 on hand. It will give weekly sales report to the head office. Engro will not involve in any of the strategic distribution practices undertaken by Duegro Project and Logistics.

PROMOTION
ADVERTISEMENT
Impact of Advertising:
Advertising plays an important role in todays competitive business world. It provides benefits to Manufacturers, Retailers, Customers, Salesman and society as well. Mostly the advertisement is used for the following purposes. Introduces a New Product Creates Demand for Product Expand Market Assists Personal Selling Building Brand Image

Weaknesses in Tarang Milk Advertisement:


Their advertisement not as successful as they thought they would be in some market. Some of their product were positioned as too scientific, and consumers didnt quite understand that is it milk or tea. Tarang Milk is short in market due to poor marketing. Tarang has been newly serving the Pakistani consumers and they failed to build a strong brand image due to its ads, quality products and its marketing. Tarang Milk Company doesnt spend its lot of money on correct and ethical advertising or other promotion program.

Suggestion for Betterment of Advertisement:


Firstly they have to do copy test of their ads so they will understand that either consumers understand the ads or not or to determine if intended message is communicative.

They should focus on the feature of their product and should not involve too much dance and music, as they are doing in their ads. They have showed that (tarang hi tarang h chai ki ye umang hey) by this peoples are not understanding that either its ad of tea or milk. So they have to focus on their product and its qualities rather then the dance and music. They should involve classy lifestyle in their ads in order to build strong and reputed image in the mind of customers. Through these ways they can make their ads attractive and focusable.

CREATING AWARENESS
Initially giving free Tarang milk pack (quantity: for a cup of tea) along with tea packs in order to develop taste among customers. Certain Sopping marts and Retail stores will be branded with: o Banners (outside the outlet) o Posters Free Sampling of cup of tea in shopping malls where the target customers can be reached. Influencing shopkeepers to recommend to customers Tarang milk as a better milk whitener than other by providing commission on achieving sells target.

BUDGET
First 3 months budget of promotional activities would be fixed After that the budget would be 5% of the sales