engro foods: marketing & recruitment
DESCRIPTION
A fully researched presentation on Engro Foods Incorporated Pakistan; discussing at length their recruitment policies, as well as a detailed analysis on their marketing strategies, brand building tactics and certain pros and cons attached to their unique marketing techniques.TRANSCRIPT
ENGRO FOODS INC.MARKETING & HRD
COMPANY PROFILE
• Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd
• Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell, and Olpers cream
• Set up two processing plants at Sukkur and Sahiwal• Other Engro businesses:
– Engro Fertilizers Limited– Engro Foods Limited– Engro Polymer & Chemicals Limited– Engro Powergen Limited– Engro EXIMP Private Limited– Engro Vopak Terminal Limited– Avanceon Limited
COMPANY PROFILE
• Their goal is to be one of the biggest players in the food business
• Their aim is to dominate the food business, and to achieve this they will settle for nothing less than the cream
• The latest results show that:– Engro Foods turnover was Rs 10.6 billion
versus Rs 5.6 billion last year– Engro Foods posted a loss of Rs. 391 million
for the nine months ended, which was better than expected. Of this, dairy business loss was Rs. 28 million
COMPANY PROFILE
– Engro Foods UHT market share now at 38%, equal to that of Nestle
– Distribution network now stretches to over 212 towns
– Farm has over 500 milking animals at September 30th, with the remainder expected to start milking by November (total of 1,925 animals)
– Ice Cream now has 36 SKUs launched and reaches 12 towns
– Omore’ ice cream is in the number 2 position behind Walls
BRAND PORTFOLIO
OLPER’S MILK
OLPER’S CREAM
OLWELL
TARANG
OMORE
2006
2006
2006
2006
2009
OWSUM 2009
PRODUCT DESCRIPTION
OLPER’S MILK
• STANDARDIZED PURE UHT MILK
• 3.5% FAT & 8.9% SOLID NONFATS
OLPER’S CREAM
• PREMIUM CREAM PROCESSED FROM FRESH MILK
• RICH IN THICKNESS & NUTRITIONAL VALUE
OLWELL MILK
• LOW FAT HIGH CALCIUM MILK
• FOR WEIGHT WATCHERS & HEART PATIENTS
PRODUCT DESCRIPTION
TARANG
• LIQUID TEA WHITENER
• SOURCE OF HIGH PROTEIN & LACTOSE
OMORE
• DAIRY BASED PREMIUM ICE CREAM
• INTRODUCED A 3 TIERED ICE CREAM
OWSUM
• FLAVORED MILK
• 3 FLAVORS: CHCOLATE, STRAWBERRY & MANGO
HUMAN RESOURCE MANAGEMENT
• Engro Foods defines HRM as the management of the company’s most valued assets- its employees who individually and collectively contribute to the achievement of the business
• The HRM principles of EFL are centered on:
• Working environment– Upholding the tradition of excellence and to become
the employer of choice
– A workplace where employees feel confident, valued and inspired
HUMAN RESOURCE MANAGEMENT
• Work life balance– Understand the importance of family and appreciate that
employees need to balance their professional and personal responsibilities
– Encourage employees to take part in numerous programs aimed at strengthening their overall wellbeing
• Employee friendly policies Formulation of many unique policies Create a more positive work environment Promote greater gender diversity Provide opportunities for training and development and Build career opportunities Other policies include: Ethics policy, gift policy, non-
discrimination & anti-harassment policy, maternity leave policy, part time work policy
RECRUITMENT
• Human Resources Committee (FOR TOPMANAGEMENT)– The HR Committee comprises of three
members, including the chairman, from the non-executive Directors of the Board
– The HR Committee has been delegated the role of assisting the Board of Directors in ensuring that the Company is able to attract and retain a professional, motivated and competent workforce.
– The Committee evaluates and recommends salary structures, variable-pay, key-position recruitments & succession plans to the BOD for their review and approval.
RECRUITMENT
• The Recruitment and Selection Committee – Responsible for ensuring that the
Company adds only top-class talent to its existing talent pool in order to sustain the already-high standards of professionalism and competence in the Company.
– The committee consists of managers with diversified experience in order to ensure recruitment of well-rounded individuals
RECRUITMENT
• Recruits include: GRADUATES MASTERS & MBAs UNDERGRADUATES
– Engro regularly recruits graduates through career fairs and graduate recruitment programs
– The Graduate Trainee Program at EFL (Karachi)
PROJECT TRAINEES & INTERNEES– Engro offers internship & short project opportunities to
students
• Their selection process has several stages:– Application form and resume– Cognitive ability tests– Telephone interviews– In-person interviews/site visits
RECRUITMENT
• ONLINE SOURCES OF RECRUITMENT– ROZEE.PK (LEAST COST MAXIMUM BENEFIT RECRUITMENT
STRATEGY)
ROZEE.PK IS PAKISTAN'S MOST POWERFUL
RECRUITING PLATFORM USED BY OVER 850,000 PROFESSIONALS AND 18,000 EMPLOYERS. OVER
95% OF ROZEE.PK'S 3.7 MILLION ANNUAL
VISITORS ARE FROM WITHIN PAKISTAN, GIVING IT A
LARGER PROFESSIONAL AUDIENCE THAN ANY
ENGLISH NEWSPAPER OR MAGAZINE IN THE
COUNTRY.
RECRUITMENT
• Campus portals launched at 52 leading universities including LUMS, FAST, IBA and NUST; employers have unprecedented access to graduating students and alumni
• ROZEE.PK is backed by venture capital from ePlanet and DFJ; funds that helped create Hotmail, Skype, Overture and Baidu
• ROZEE.PK is used by some of Pakistan’s most sought after employers to recruit human capital, including Mobilink, Nestle, Oracle, McDonalds, UBL, Microsoft, GlaxoSmithKlein, Mentor Graphics, P & G etc
RECRUITMENT
"WE WERE DELIGHTED WITH THE QUALITY OF
CANDIDATES WE WERE ABLE TO HIRE THROUGH
OUR PARTNERSHIP WITH ROZEE.PK.
EFL IS A RAPIDLY GROWING COMPANY AND OUR
PEOPLE ARE OUR MOST IMPORTANT ASSET. OUR
ONLINE HIRING EXPERIENCE HAS YIELDED AN
EXCELLENT RETURN ON INVESTMENT COMPARED
TO CONVENTIONAL METHODS.“Shafaq Omar
General Manager Human ResourcesEngro Foods Limited
TRAINING & DEVELOPMENT
• The training and development unit of Engro Foods is located in Karachi
• Employees are provided with both technical and personal training to enhance their working capabilities
• WOMEN NETWORK: WEAVE
– Functions on the belief that networking, coaching and mentoring provides opportunities for people to grow personally and professionally throughout their careers
– Engro is known to be an equal opportunity employer. As part of its diversity initiatives, “WEAVE” was formed to facilitate informal networks and relationships among women employees of Engro
MARKETING: COMPETITOR ANALYSIS
• Brands like Milk Pak (Nestle) and Haleeb Milk (Haleeb Foods) have led the dairy market in the world’s 4th largest milk producing country for nearly 2 decades:
– The packaged milk category was originated in 1981 by Milk Pak
– It pioneered Tetra Pack milk in Pakistan– The supply chain involved Collecting milk from rural areas across Punjab Processing the milk through UHT treatment Selling it to consumers in uniquely colored triangular and rectangular
packs designed to prolong the milk’s quality
– Milk Pak’s “Milk Packs” became synonymous with quality milk
– The first real competition came from Haleeb; introduced distinctively blue Tetra Packs to the market in 1986
MARKETING: COMPETITOR ANALYSIS
• By 2006 the dairy milk category was growing at 20 percent annually Milk Pak and Haleeb were well-entrenched brands
with distinctive colors and brand promises of providing high quality, natural and healthy milk
Milk Pak was identified by its green and white packaging- the colors of the country- and offered a brand backed with the strong equity of Nestle, coupled with its own traditional heritage
Haleeb was recognized as the blue brand, and professed to have the "naturally thickest" milk
With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely impervious to newcomers
MARKETING
• 1ST Case: OLPER’S MILK• 2nd Case: TARANG (TEA WHITENER)
• Intensive advertising carried out to develop/introduce the brand; mostly TVCs
• Initially used brand development strategies:– CREATING AN IMAGE/IDENTITY OF THE PRODUCT
IN ORDER TO ATTRACT CONSUMERS
– BUILDING A FAVORABLE BRAND IMAGE
– BUILDING CONSUMER PREFERENCE– BUILDING CONVICTION THAT IT IS BETTER
OLPER’S MILK
• Olper’s launched a massive marketing campaign; initiated by a ‘slice-of-life’ TVC featuring big time celebrities
• Rafey Nisar Zuberi, the marketing manager for Engro Foods, says:
“FROM THE ONSET, WE WANTED TO INTRODUCE A TRUE
PARADIGM, BRINGING THE DAIRY BRAND TO THE FORE.”
• Olper’s chose red as its color- a color far removed from the greens and blues that had become synonymous with packaged milk (DIFFERENTIATING)
OLPER’S MILK
“WE WANTED CONSUMERS TO CONSIDER OLPER’S AS A
CONTEMPORARY AND MODERN BRAND, AND ALL OF
OUR COMMUNICATION AND BRAND ATTRIBUTES WERE
GEARED TOWARD ENSURING THAT END.”– The first step was brand building; the aim was to
ensure Olper’s established an image of being a healthy and natural product
– Its optimistic and vibrant tag line-“Good Morning Life”-along with the unique red color became the soul of the Olper’s brand identity
“WE ARE BIG BELIEVERS IN THE PRIMARY TENET OF
MARKETING: GETTING TO KNOW YOUR CONSUMERS THROUGH
RESEARCH. FOR OLPER’S, EVERYTHING FROM THE COLOR AND
THE PACKAGING, TO THE RECIPE AND THE NAME, WAS
THOROUGHLY CONSUMER TESTED.”
OLPER’S MILK
• TVCs incorporated PREFERRED
BEHAVIOURAL features of the society to REINFORCE a POSITIVE BRAND IMAGE:– STRONG FAMILY VALUES
– STRONG MORAL VALUES
– JOINT-FAMILY SYSTEM
– MOTHERHOOD
– AN AVERAGE CITIZEN EVERYONE CAN RELATE TO
– SUCCESS DRIVEN INDIVIDUALS
– HEALTHY LIFESTYLE (SUBHA-BAKHER ZINDAGI)
– MILK IS NOT A ONE-TIME DRINK (MORNINGS, EVENINGS & NIGHTS)
OLPER’S MILK
“FOR COMPANIES TO BUILD ICONIC, LEADERSHIPBRANDS, THEY MUST ASSEMBLE CULTURAL
KNOWLEDGE.”• Ramazan is a great cultural/religious event;
sales of food-related products increase; a great opportunity to endorse a brand image as proven by marketing done for Olper’s:– ATIF ASLAM ENDORSEMENT OF OLPER’S MILK
– REMAKE OF A TIMELESS NA’AT– REINFORCING A STRONG, POSITIVE BRAND
IMAGE BY EXPLOITING RELIGION-ORIENTEDEXPECTATIONS/FEELINGS OF CONSUMERS
OLPER’S MILK
“WE ARE AIMING TO OWN THE RELIGIOUS MONTH AND OURSPECIAL EDITION PACKAGING, RAMAZAN RELEVANT ATL
(ABOVE THE LINE- TELEVISION, RADIO, ETC.) AND TAILOR-MADE IFTAAR ACTIVATIONS, ARE AIMED AT BUILDING THE
NECESSARY ASSOCIATION WE WANT IN CONSUMERS’ MINDS”• BTL (Below The Line-brochures, flyers, etc.) approaches
have also contributed to the brand’s success• The World of Olper’s involves reaching out to different
locations in various cities and having the housewives participate in learning and showcasing milk-based recipes“THE INTENTION IS TO PURELY BUILD TRIAL EXPERIENCES.”
• The Olper’s Consumer Relationship Party is another BTL program, which aims to create and maintain loyalty amongst the customers
TARANG
• Used a more exaggerated cultural/fun-loving marketing approach for introducing the brand:– HEAVY RELIANCE ON CELEBRITY ENDORSEMENTS– USED ALMOST ALL ACTORS/ACTRESSES/PERSONALITIES
PRESENT IN THE LOLLYWOOD FILM INDUSTRY
– PROMOTING AN ENERGETIC UP-BEAT BRAND IMAGE
– STORY-TELLING APPROACH: TELLING CULTURAL STORIES(SONI-MAHIWAL) FOR MASS APPEAL
– GETS FULL MARKS FOR A NEW, INNOVATIVE PRODUCT ANDAN INNOVATIVE MASS-MEDIA CAMPAIGN
– STRESSING ON GOOD FLAVOR (CHAI KA SAHI JOR)– SPONSORING SHOWS (TARANG CHOCOLATE HERO)– ATTENTION GRABBING TECHNIQUES
TARANG
• Problems in the second approach:– HEAVY ADVERTISING BUDGET FOR A PRODUCT WITH A
DOUBTFUL MARKET
– NEGATIVE IMAGE MANY PEOPLE ASSOCIATE WITH SONG & DANCE
– NOT A VERY GOOD APPROACH FOR PROVIDING A DETAILED INTRO OF A NEW PRODUCT
– UNABLE TO COPE WITH DEMAND (REPORTED PROBLEMS
WITH THE TARANG CHOCOLATE HERO WEBSITE ALTHOUGH
THE SHOW RECEIVED GOOD DEMAND BUT PEOPLE HAD
LITTLE TO DO WITH THE PRODUCT ITSELF)
MARKETING FOR OLWELL & OMORE
• Olwell is a low-fat, high-calcium milk with the richness of pure milk
• Along with this Engro Foods expanded its portfolio further by coming up with its ice-cream brand - Omore (launched initially in Lahore only)
• Marketing strategies for both products were carried out through diverse and dynamic approaches
• One way that Engro Foods has chosen to interact with their customer is Float Activity
• Engro Foods launched promotional activities which proved very effective in interacting with customers. These include:
– ROAD SHOWS
– RURAL MELAS
– BACHAT BAZAARS
– FREE SAMPLINGS
– CHAIN STORES PROMOTIONS
– BANNERS &POSTERS
– TV COMMERCIALS
MARKETING FOR OLWELL & OMORE
OLWELL
• Provided another market for the milk industry
• Segment the market by targeting customers from the higher class in society– This can be advocated by the fact that their TVC
showed a great emphasis on the more privileged parts of society based on a Western life style
– Create a more glamorous tag to their brand
– Showing a man who put off his clothes & remain just in his undergarments, or a half nude lady in a cat walk or men admiring the figures of a lady in a mix gender health club was a more gutsy move in the Pakistani market
OLWELL
• They also created an association with the brand through the stripes– A highlight of Olwell packaging
– People were shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell
– Also, the talent, situations and locations connect well and provide to give Olwell a premium positioning
OMORE
• The marketing for Omore was dealt in a totally different manner– The way it has been promoted, most of the TVCs
show that its product brings about stronger cultural values and a more family centered and family oriented lifestyles
– A very eye catching campaign starting from jingly television commercials to colorful decorations all over Lahore where it was initially launched
– Dropping pamphlets from an airplane
– Almost every innovative tool has been used to market Omore