Table of Content

Company profile Engro Brands THEIR AFFILIATES Competitors

Market segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Product MixPRODUCT

o Tarang milko Introductiono Features of producto Packaging

PRICE

PLACEo 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)

PROMOTIONo 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,

Olper’s cream, Olwell and Tarang. The company’s 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 players’s in the food business. Engro’s 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.

PRODUCTTARANG 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

Stonehenge Logistics PakistanSindhEngro's DistributionPunjabNational LogisticsBaluchistan Duegro Projects and Logistics PakistanKhyber

Pakhtukhuwa

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:

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:

Baluchistan:

For Baluchistan, National Logistics Pakistan will handle all the logistics and distribution services. Following policies and procedures will be followed.

Transportation:

Regional Distribution

Regional Distributor

Regional DistributorCompany City Distributor

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 today’s 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 didn’t 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 doesn’t 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