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Group Members: Mahab Aamir - 018
Sadaf Hayat - 009
Hira Khizer - 048
Rabia Rehman-
Saira Aslam -
Subject: Introduction to Marketing
Project: Marketing Plan “Fruitos”
By Engro Foods Ltd.
Submitted To: Miss Tehreem
Date of Submission: January 01, 2016
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INDEX
1. Introduction Page 3 to 4
1.1 History Page - 3
1.2 Values, Behavior & Culture Page - 3
1.3 Core Values Page - 4
1.4 No. of Employees Page - 4
1.5 Share Holders Earning Per Share Page - 4
2. Corporate Objectives Page - 4
3. Market Overview Page 5 to 6
3.1 Market Size Page - 5
3.2 Market Trend Page - 5
3.3 Market Share Page - 6
4. Internal Audit Page 7 to 9
5. External Audit Page 9 to 12
6. SWOT Analysis Page 12 to 13
7. PEST Analysis Page 14
8. Assumptions Page 14 to 17
8.1 Purpose & Mission of Marketing Plan Page 14
8.2 Situational Analysis Page 15
i) Current Product Page 15
ii) Current Target Market Page 15
iii) Current Distribution Network Page 15
iv) Current Competitors Page 15
8.3 Marketing Strategy & Objectives Page 16
8.4 Budgeting, Performance & Implementation Page 16
8.5 Ways of Marketing Page 17
9. Marketing Objectives & Strategies Page 18 to 30
9.1 Setting Marketing Objectives Page 18
9.2 Characteristics of the Product Page 19
9.3 Market Potential Page 19 to 27
9.4 Market Segmentation Page 28
9.5 Target Market Page 29
9.6 Product Positioning Page 29 to 30
10. Marketing Mix Strategy Page 30 to 36
11. Alternate Market Plan Page 36 to 39
12. Promotional Plan Page 39 to 40
12.1 Promotional Activities Page 39
12.2 Implementation of Promotional Program Page 39 to 40
13.Measurement Review and Control Page 40
14.References Page 41
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1. INTRODUCTION:
Engro Corporation is a Pakistani public multinational corporation based in Karachi with
subsidiaries involved in production of fertilizers, foods, chemicals, energy and petrochemicals.
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 Terminal Pakistan Limited
1.1 History:
Engro company was established in 2003, after which in 2005 Engro decided to diversify their
business more by venturing into the food business by establishing Engro Foods Limited. Engro
also ventured into the power generation business by setting up Engro Energy Limited in 2006,
which later on was renamed as "Engro Powergen Limited" in 2008. It was established with the
basic aim to play Engro's part to tackle the energy crisis in the country. In year 2007, Engro
Asahi Polymer divested its share in joint venture with Mitsubishi and the company renamed as
Engro Polymer & Chemicals Limited. In 2010, keeping in view the immense diversification of
Engro Chemical Pakistan Limited, it was decided to rename the company as Engro Corporation
as the holding company. In the year 2011, Engro Corporation had a major global diversification
with the acquisition of US based Company, Al-Safa Halal. This new business venture comes
under Engro Foods Canada Ltd and its subsidiary Engro Foods USA, LLC. Al-Safa Halal targets
7 million populations of Muslims in North America.
1.2 Values, Behavior and Culture:
At Engro we support our leadership culture through unique systems and policies which ensure
open communication, foster an environment of employee and partner privacy and guarantee the
well being and safety of our employees. Company does not try to hide salaries because it is
impossible to keep salary structure confidential moreover after good friendship employees do not
hesitate to share their salaries. At Engro, we strive to uphold the tradition of excellence and
become the employer of choice. We offer a workplace where employees feel confident, valued
and most importantly inspired.
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1.3 Core Values:
Ethics and Integrity:
We do not care how results are achieved and will demonstrate honest and ethical
behavior in all our activities. Choosing the course of highest integrity is our intention and
we will establish and maintain the highest professional and personal standards.
Health, Safety and Environment:
We will manage and utilize resources and operations in such a way that the safety and
health of our people, neighbors, customers and visitors is ensured. We believe our safety,
health and environmental responsibilities extend beyond protection and enhancement of
our own facility.
Community and Society:
We believe that a successful business creates much bigger economic impact value in the
community, which dwarfs any philanthropic contribution. Hence, sustainable business
development is to be anchored in commitment to engage with key stakeholders in the
community and society.
1.4 Number of Employees:
2000 employees are working in Engro Foods Limited.
1.5 Shareholders earning per share:
Shareholder earning per share in Engro Foods Limited is PKR 275/-
2. CORPORATE OBJECTIVES:
Mission Statement:
“Build branded food business to improve quality of life by offering tasty, affordable and high
nutritional products to our consumers while maximizing stakeholder’s value.”
Vision Statement:
Vision Statement:”Aim at transforming the company within the five years into first national food
industry giant, then into regional force and finally into a global player.”
Objectives and Goals:
Engro Foods main objectives are to supply everyone their favorite Olper’s Milk and to satisfy the
consumer need and wants. Engo Food’s second objective is to increase the value for the
stakeholders and company value. We want to be the major player in the food industry.
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Corporate Level Strategy:
Corporate Level Strategy: Engro Foods is horizontally integrated itself and increase its number
of products. At this time company has a lot number of products in the market.
3. MARKET OVERVIEW:
3.1 Market size:
The size of market for Engro Foods is quite large. As we know the company aims at providing
healthy and safe milk products to the market and we know that the demand of the milk products
is high in the market so the total market size for Engro Foods is quite large.
3.2 Market Trend:
If we talk about the market trend for Engro Foods then it is quite evident that in the recent past
years it has made large improvements in its earnings, market shares and number of customers.
After the launch of new products like Omung, Tarang and Olper’s, Engro Foods has become a
strong name in the dairy products market and has established a strong brand image.
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3.3 Market Share:
The market share of Engro Foods in the dairy products market is second largest. Its market share
is 27% .The market share for Engro Foods Limited is evident from the following figure:
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4. INTERNAL AUDIT:
The internal audit for Engro Foods Limited including its 4Ps has been given below:
Product in the Marketing mix of Engro Foods:
Although Engro Foods started its operations, using dairy products like milk but later it included
many food products under its product portfolio. In order to meet the demands of its health
conscious customers, it dealt in food items that were healthy and had good nutritional value.
Special attention has been given to the taste and quality of the products. Their multiple products
include items like the following:
Lassi
Flavored milk
Milk powder
Fruit juices
Ice creams
Milk
The brands milk items include olper’s full cream milk that is creamy in nature and Olper’s lite
for health conscious people who tend to drink low-fat milk. The fruit juices include Dairy
Omung and Olper’s Y-Frooter. Tarang is the special and creamy milk powder whereas the frozen
desserts are available in cups and sticks. Olper’s cream and Olper’s Tarrka are some of its other
products. The Tarrka is used as a special spice to enhance any food item. Although the ice
creams are available in various sizes, the other dairy products are available in mostly half and
one liter sizes. Engro Foods also deals in anhydrous milk fats that are used for various purposes
like frying, cooking, as replacement for fat in dairy products, as ingredients in bakery products
and for making ice creams and confectionary. Its product also includes unsalted butter that is
derived from the pasteurized cream of both buffalo and cow. For its international market, Engro
Foods has also started venturing in to various other food products. Besides the regular items, the
other products served are frozen meat related food items like turkey, beef and chicken.
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Place in the Marketing mix of Engro Foods:
Engro Foods is actively involved in the distribution of all its food products. It follows both the
direct and indirect channel of distribution. Under indirect channel Engro food products are
available at almost all the large and small-scale outlets and stores. Even high profile marts and
showrooms that have food item counters display the products of this company. This has become
possible because of the transports owned by private firms. The usual channel under this scheme
includes distributer, wholesaler, retailer and then the consumers.
The direct channel has become possible because the company is selling their products to the
consumers directly through their own personnel on cycles, trucks or tricycles. The distribution
network is an extensive one so that prompt deliveries are possible. Engro Foods has set up its
own dairy farms as well as plants for milk processing in Sahiwal and Sukkar. It has appointed
workforces for milk procurements and created departments that are vigilant in its efforts to
ascertain the freshness of the products. The company covers at least twelve regions and has
nearly three hundred and fifty distributers working under it.
Under its international expansion plans, the company signed an agreement to buy the American
food company Al-Safa Halal. Today the company has become an international company with a
global market.
Price in the Marketing mix of Engro Foods:
Engro Foods has decided to follow the strategy of competitive pricing for its products. In order
to do so it has kept a careful watch on the market economy as well as the pricing policies of all
its competitors. It receives regular feedbacks that help it in determining and fixing the prices of
its own products. The market demand is another deterrent in determining the prices and Engro
keeps the lowest possible prices without hampering the quality of the product.
The company has decided to keep the prices flexible on a minimum and reasonable scale, so that
each and every section of the community can reach towards these products. Large volume of
sales yields larger profits for the organization. Keeping all its options open the prices tend to
fluctuate to meet the demands of the consumers as well as other economic factors. In order to
maintain its commitment towards providing realistic food prices the company has taken
admirable and active steps so that cutting of excessive costs can be made possible.
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In some cases, the company has also used a premium pricing policy where the prices are a bit
more than the prices of local available brands but are quite reasonable when compared to the
international brands. These are for brand conscious customers who tend to purchase products that
provide competition to foreign markets.
Promotion in the Marketing mix of Engro Foods:
The marketing strategy of Engro foods is consumer centric and this has made them a huge
success in the food industry. Under its promotional strategy, it has given special attention to its
packaging and marketing. The attractive and high quality packaging is also colorful to make it
distinctive and eye catching. Tetra packs are used for protecting the flavor and freshness of dairy
products and that to in distinct colors like purple, orange, green and yellow. An Engro food
product is easily recognized at a glance. Engro foods have realized the importance of homemaker
in the scheme of their things and hence have been actively targeting the homemakers to buy their
products. The healthy milk products are a hit with them and the kids love the taste of its ice
creams.
Engro foods recognize the contribution of active advertising to make high sales. The vision of
the company is “Elevating Consumer Delight Worldwide” and for this purpose, it has taken the
help of print media to highlight its products in every nook and corner. Billboards magazines and
newspapers are an important part of their strategy. Besides this, they have created noticeable ads
that are colorful with catchy tunes and made them a part of the electronic media specially the
television and radio. Advertisements are also displayed on vehicles like the bus, trucks and
trams.
5. EXTERNAL AUDIT:
The external audit for Engro Foods includes the marketing mix of a competing brand. The
greatest competitor for Engro Foods is Nestle. The marketing mix for Nestle has been given
below:
The Marketing mix of Nestle discusses the 4P’s of one of the strong FMCG companies of the
world. The Nestle marketing mix shows Nestle has a strong product line which boosts its
marketing mix. Below are the products, price, placement and promotions of Nestle.
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Products:
There are 4 different strategic business units within Nestle which are used to manage various
food products.
Beverages
One of the most known coffee brands Nescafe belongs to the house of Nestle and is one
of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a
worldwide distribution and has many different variants. Looking at India, Nestle has
also launched Nestea.
Milk and Milk products
Nestle Everyday, Nestle slim and Nestle Milk maid are some of the milk and milk based
products from the house of Nestle.
Prepared dishes and cooking aides
Nestle has a third category of products which comes into prepared dishes and cooking
aides. The major cash cow of Nestle lies in this segment, which is Maggi Noodles.
Probably one of the most widely sold ready to cook noodle brands is Maggi. Maggi has a
fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the Maggi
brand to create an umbrella of different products like Maggi pasta, Maggi sauce, Maggi
cubes etc. The maggi range contributes vastly to the bottom line of Nestle.
Chocolates:
Nestle has some popular chocolate products, most popular being Nestle Kitkat, Munch,
Milky bar, Eclairs and Polo. The newly introduced Alpino is targeting the gifting
segment in response to various chocolates like Dairy milk and Bournville by Cadbury.
The chocolates segment of Nestle is a star, where the competition is high and the expense
is high but at the same time the market size is huge as well.
As we can see, two major brands of Nestle are a very high contributor to its Brand equity –
Nescafe and Maggi. These are two brands sold across India in small as well as big shops and
super markets. There have been many competitors for these products, like Bru for Nescafe and
Top ramen and Sunfeast Yippie against maggi.
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The appreciable factor in Nestle is that quality maintenance of products is up to mark and there
are hardly any complaints about Nestles products in the market. This is a major achievement for
a company which relies majorly on food products.
Price:
The price is dependent on the market of each individual product. For example, Nescafe and
Maggi being the clear leaders are priced with higher margins for the company as compared to
competition. This is because the product quality is good enough and a bit of skimming price will
not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based pricing. For
Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In supermarkets, you
can even find a 16 packet maggi whereas in small retail shops, you can find 5rs maggi.
Thus, with the variety available, customer can make his own choice based on his consumption.
In other products like Kitkat and Munch, due to tough competition from other companies, Nestle
offers competitive pricing. You will find that nestle will be similar priced to many of Cadbury’s
Products in the chocolate segment.
Place:
These are the two different forms of distribution which Nestle has. It is typical of any FMCG
company. However, the Nestle channel is known to be strong with a good marketing and sales
network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel
motivated. The major challenge is in the distribution of Maggi which is the most in-demand
product along with Nescafe. Due to these two products, Nestle is able to drive other products in
the market as well. Thus, on purchase of one weak product, the distributor might get a discount
on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment where it faces stiff competition from
Cadbury and hence selling the chocolates becomes difficult. Kitkat might have its own brand
positioning, but it is not better than Dairy milk. Thus, converting retailers to sell Nestle instead
of Cadbury is the toughest task for Nestle. This is converted mainly through promotions.
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Promotions:
One of the most widely known tunes is the Nescafe tune. It was one of the best advertising
campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe
strongly in the market.
On the other hand, Nestle’s brand was pushed by the excellent product quality of Maggi and the
witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good things
in life, Maggi focuses on moments you had with your Maggi. The recent campaign
was completely focused on your Maggi story, where people had to come out with various
innovative ways that they had their Maggi.
Promotions for other products too are done smartly. Kitkat focuses on “Take a break” and has
done some good marketing for the same. Kitkats website too is very innovative and shows
nothing but asks the visitor to take a break and have a Kitkat. The major push expected of a
FMCG company is in sales promotions at the ground level. This is where Nestle really rocks.
Nestle focuses on its strength which is Maggi, Nescafe and Kitkat which are the most
promoted brands in the market on ground level.
Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present online through
some smart creative. Overall, Nestle is a brand which has strong products as well as strong
marketing, and hence the brand has a very high brand recall value.
We hope that Nestle keeps bringing in good products and keeps maintaining the quality of the
products it already has.
6. SWOT ANALYSIS
Strength:
Highly quality milk
Ultra heat temperature (UHT) Milk
Successful related diversification strategy
Thicker milk for tea
Best Milk collection system
Suitable brand name
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Good packaging
Strong relationship with farmers
Best marketing campaign
Motivational tagline and slogans
Strong back by Engro corporation limited which has a strong reputation in the market
Good response from the customers which shows the quality and commitment of olpers
Strong research & Development
Weakness:
Depend on tetra pack
Engro Foods have 40 milk collection center in Pakistan which is not enough to grow the
business
Olpers have only one dairy farm which is not enough to milk the country
Opportunities:
Increase in Govt. Funding therefore farmer will be able to store milk for longer period of
time
Increase in consumption of processed milk by the consumer
Population growth
High migration rate of people to urban areas
Flexible Government policy for food industry in Pakistan
Improvement in literacy rate of Pakistan
Olpers have enough funds to expand their operations in Pakistan
Opportunity for globalization
Threats:
High inflation in Pakistan
Low purchasing power of the people
Increasing interest rate
Law and Order Situation has a great impact on the company sales
Recession
Low GDP growth rate in the country
Giant Competitor in the market
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7. PEST ANALYSIS
Political Factors:
It includes rule and regulations by government. Every organization can run successfully whey it
follow the law and regulation related to them.
Economic Factors:
Every organization has impact by its economics, factors and they must respond economically.
Social Factors:
The improvement in literacy rate brings the awareness about tetra packing this will enhance tetra
packing sales Olpers, Tarang etc. increase in literacy rate change the mind of the people prefers
standardize milk instead of open milk.
Technological Factors:
This factor also effect environment technology brings competitive advantage for any
organization.
8. ASSUMPTIONS
8.1 Purpose & Mission of Marketing Plan:
The purpose and mission of the already developed marketing plan of Engro Foods Limited are as
follows:
Mission:
Build branded food business to improve quality of life by offering tasty affordable and
high nutritional products to our consumers while maximizing stakeholder’s value.
Purpose:
Aims at transforming the company within five year into first national food industry giant
then into regional force and finally into global player.
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8.2 Situational Analysis:
i. Current Products:
The current products are as follows:
Olper’s
Olper’s Milk
Olper’s Lite
Olper’s Badam Zafran Milk
Olper’s Cream
Dairy Omung & Tarang
Omung Dobala Cream
Dairy Omung Milk
Tarang Tea Whitener
Omung Lassi
Tarrka
Desi Ghee
Olfrute
Juices & Nectars
Omore
Ice Cream
ii. Current Target Market:
Engro Foods divides its target market into following two levels:
Primary Market
It includes upper middle and upper income groups seeking healthy and nutritious all-
purpose milk.
Secondary Market
It includes diet conscious, career oriented, upper middle and upper income class.
Secondary market includes mothers and house wives. The usage rate of products is
high in urban and denser areas.
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iii. Current Distribution Network:
7 Distributors ‘General Trade’
ICA ‘International Chain Account’
Makro ‘10% of Total Sales’
Metro ‘10% of Total Sales’
Food Services
2 Distributors ‘10% of total sales’
iv. Current Competitors:
Nestle
Haleeb
8.3 Marketing Strategy and Objectives:
Engro Foods main objective are to supply everyone their favorite milk and to satisfy consumer
needs and wants. Engro Food second objective is to increase the values of stakeholders and
company values. We want to be major players in the food industry. Consisting of leading
marketing professionals of the industry, who are graduates of top business schools of Pakistan,
the marketing department ensures that from product need identification to product development,
launch and post launch , all strategic decisions are made based on authentic information and
research. Identifying the target markets, effectively communicating to them and building the
image of the brands as well as the companies, is the job of the professionals running the market
at Engro Foods. Due to good marketing strategies Engro foods growth is 35% per year, and
181% growth in Earning per Share (EPS) per year, in 2012. Olper’s have over 350 distributors
which are serving 12 regions across Pakistan from the three distribution centers in Islamabad,
Sahiwal, and Sukkar. Olpers supply chain has secured 24% growth in volume.
8.4 Budgeting, Performance and Implementation:
Egro Foods Limited is a big company and owns a number of brands like Omore, Olpers and
Tarang etc so in order to plan the marketing mix of all these brands and in order to maintain the
efficiency and market share of all these brands the finance department has to perform a great job.
The company needs assistance from the finance department to flourish in the business sector.
The company will only succeed if proper budgeting is done. For this purpose the company has
employed finance professionals from all over the Pakistan to manage the budgeting issues of the
company. Proper amount of budget must be assigned to every sector for the completion of all the
business activities. If budgeting is done in an efficient manner only than the performance of the
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company will improve and the company will be successful. After the formulation of the budgets
the top management must also implement proper straggles according to the budget constraints.
8.5 Ways of Marketing:
Engro Foods adopts a number of ways of marketing which are as follows:
Innovative Products:
In the market in order to compete with its competitors the company offers new and
innovative products every now and then. The company offers products with innovative
features. This has a positive and strong impact on the marketing of its products.
Competitive Pricing:
The company uses the technique of competitive pricing in order to succeed in the market.
The target audience for Engro Foods is the middle and the upper class. So it sets the
prices of its products so that they are easily affordable by greater number of people in the
community. While setting the prices of all the products the company also keeps in mind
the prices that are set by its competitors. analyzes them and then set the prices which are
both competitive and provide a handsome profit margin to the company.
Effective Promotion:
The company uses effective promotional techniques for the promotion of its products.
The promotion is very important in the marketing of every product so the company pays
important attention on this part of the marketing mix. The company uses TV advertising,
Newspaper Advertising, Online Advertising etc for the promotion. All of these
techniques are very effective tools of promotion in the current market.
Building Strong Relations with the Customers:
The company ensures to maintain the strong relation with the customers. The company
gives them a feeling of importance and effectively communicates with them. Customers
are an important part of every business. Engro Foods tries its best to maintain strong and
healthy relations with its customers.
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9. MARKETING OBJECTIVES AND STRATEGIES:
9.1 Setting marketing objectives:
The company now needs to set new marketing objectives. Following will be the marketing
objectives of Engro Foods Ltd.
1. Launch a new product line:
Engro foods ltd now has to launch a new product line. The company originally has many
product lines. But none of them is offering the cereals to its consumers. In order to
increase the market share of the company and to attract greater number of customers the
company has intended to add an additional product line which is named as Fruitos. It
serves various varieties of cereals to the consumers.
2. Target new customers:
The company already offers milk products and targets the customers by fulfilling their
daily milk products need. Large number of people within Pakistan use cereals. In order to
target all those people the company has introduced this new line of cereals.
3. Enter new markets locally:
The company originally operates in the market that delivers milk products. In order to
enter the market that provides cereals to the customers the company must make careful
measurements in order to be successful.
4. Grow market share:
The market share of the company will be increased if it introduces the new line of the
product. By growing the market share the company will earn greater profits.
5. Increase sales:
The company aims to increase its number of sales in order to earn greater profit. This is
done by introducing the new product line of the cereals.
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9.2 Characteristics of the product:
The cereals introduced in this product line will have the following characteristics:
1. It will be available in various flavors.
2. The cereals will contain limited amount of sugar.
3. They will be powered up with protein.
4. They will embrace fiber.
5. The pack will be available in different quantities.
9.3 Market potential:
To analyze the market potential we developed a questionnaire in order to know the potential of
the breakfast cereal market in Pakistan and its future profit possibilities.
Sample Questionnaire:
A sample of the designed questionnaire is as follows:
Name:
Age:
Gender:
Total Family Members:
Kids in your Family:
Qualifications:
Occupation:
Kindly answer the following question as you find it suitable:
1. How often do you eat cereals?
a. Daily
b. Weekly
c. Fortnightly
d. Monthly
2. Who among your family members is fond of cereals the most?
a. Kids
b. Youngsters
c. Adults
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3. At which time do you mostly eat them?
a. Breakfast
b. Lunch
c. Supper
d. Dinner
4. How important do you believe is a brand name when it comes to the choice of breakfast
cereals?
a. Irrelevant
b. Not that important
c. It is a plus but not essential
d. Really important
5. Which of the following nutrients do you think is most essential in case of cereals?
a. Fiber
b. Wheat
c. Proteins
d. Iron
e. Corn
6. Which brand do you prefer the most?
a. Nestle
b. Fauji cereals
7. Which flavor do you buy mostly?
a. Chocolate
b. Honey
c. Nuts
d. Whole grain
e. Oats
f. Corn
8. Which quality seems attractive to your kids when it comes to the choice of cereals:
a. Taste
b. Healthy contents
c. The outer packaging
d. Both A and C
9. How much do you spend on cereals on monthly basis?
a. Less than Rs. 1,000
b. Less than Rs. 2,500
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c. More than Rs. 2,500
10. How many packets do you consume on monthly basis?
a. Less than 5
b. Around 10
c. More than 10
d. More than 15
Questionnaire Result Analysis:
I got 10 copies of this sample questionnaire and distributed them among 10 people. The results
that I obtained through these questionnaires are shown below:
1. Age:
18 to 25 Years
25 to 40 Years
40 to 60 Years
This questionnaire was distributed among people ranging mostly from 25 to 40 years
of age as it is evident from the pie chart given above.
Age
18 to 25
25 to 40
40 to 60
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2. Gender:
Male
Female
This questionnaire was distributed mostly among female individuals.
3. Educational Level:
Secondary
Higher Secondary
Bachelors
Masters
The above data shows that people who attempted this questionnaire had a high level
of education.
Gender
Male
Female
0
10
20
30
40
50
60
70
Secondary Higher
Secondary
Bachelors Masters
Educational Level
Educational Level
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4. Cereal Usage:
Daily
Weekly
Fortnightly
Monthly
Most of the people consumed cereals on daily basis which shows that the market
potential for this product is quite high.
5. Utilization by Family Members:
Kids
Youngsters
Adults
The above data shows that cereals are mostly liked by kids thus company will
successes only if it targets children population.
0
5
10
15
20
25
30
35
40
45
Daily Weekly Fortnightly Monthly
Cereal Usage
Cereal Usage
Utilization by Family Members
Kids
Youngsters
Adults
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6. Intake Timings:
Breakfast
Lunch
Supper
Dinner
Cereals are mostly liked in the breakfast so we must design our cereals to fulfill the
breakfast needs.
7. Importance of Brand:
Irrelevant
Not Important
Not Essential
Really Important
People think that brands are very important when it comes to the choice of cereals.
0
10
20
30
40
50
60
70
Breakfast Lunch Supper Dinner
Intake Timings
Intake Timings
0
10
20
30
40
50
Irrelevant Not Important Not Essential Really
Important
Importance of Brand
Importance of Brand
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8. Important Nutrient:
Fiber
Wheat
Protein
Iron
Corn
Fiber is the most important nutrient for cereal. Protein & Iron carry equal importance
also.
9. Brand Preference:
Nestle
Fauji
The most preferred brand by audience is Nestle. So our major competitor in this
market will be Nestle.
0
5
10
15
20
25
30
35
Fiber Wheat Protein Iron Corn
Important Nutrient
Important Nutrient
Brand Preference
Nestle
Fauji
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10. Flavor Preferred:
Chocolate
Honey
Nuts
Whole Grain
Equal importance is given to cereals containing chocolate, honey & nuts.
11. Most Attractive Feature:
Taste
Healthy Content
Outer Packaging
Both Taste & Outer Packaging
People mostly get attracted towards the taste of cereals. The content of cereals is
given secondary importance.
0
5
10
15
20
25
30
35
Chocolate Honey Nuts Whole Grain
Flavor Preferred
Flavor Preferred
0
5
10
15
20
25
30
35
40
Taste Healthy
Content
Outer
Packaging
Both taste &
Outer
Packaging
Most Attractive Feature
Most Attractive Feature
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12. Monthly Spending:
Less than 1,000
More than 2,500
Less than 2,500
People mostly spend around Rs. 1,000 on purchase of cereals on monthly basis. So
the market potential for this product is quite high.
13. Monthly Purchased Packets:
Less than 5
Around 10
More than 10
More than 15
People purchase around 10 packets per month.
Monthly Spending
Less than 1,000
More than 2,500
Less than 2,500
0
10
20
30
40
50
60
Less than 5 Around 10 More than
10
More than
15
Monthly Purchased Packets
Monthly Purchased Packets
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9.4 Market Segmentation:
Bases for segmentation:
To occupy a clear desirable and distinctive place related to competing cereal brands in the minds
of target customers ‘Fruitos’ by Engro Foods limited segments its market on following basis:
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Geographic segmentation:
Friutos segments its market geographically on divisional basis. We divide each division in
different zones and every distributor is restricted to sell the product in his or her own zone. For
example Rawalpindi has been divided into five zones like east, west, north, south, south west.
Demographic segmentation:
Age:
We have segmented the market on basis of age as we only target kids from early age
infants to 12 years of age. Mothers who can either be very old or young are also a
target for this product as mothers are very conscious about the diet of their children.
Income level:
People belonging to lower income groups cannot afford to buy cereals so Fruitos
will target that segment which puts them in the upper middle and higher income
groups.
Social Stratification:
Buyers are divided into different groups based on social class and lifestyle. Many
consumers belong to lower class and live a simple life they do not prefer to buy
artificial food for their kids and people belonging to the middle class or upper class
will definitely opt for this.
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Psychographic segmentation:
Class consciousness:
Fruitos has also segmented the specific class of children and mothers who are class
conscious and go for things which are considered to be cool in the society and as
well as healthy. As breakfast cereals are mostly a western concept so the people who
are inspired by the west will opt for this product.
Level of education:
The educated class will get more attracted to this product as compared to the
uneducated class.
Behavioral segmentation:
Benefits:
Fruitos has classified its buyers on the basis of the benefits that they seek in the
product. Some of the buyers will prefer the healthy contents like they will go for
cereals contain wheat, corn; oats etc. different flavors which seem to be attractive to
the kids have also been designed.
9.5 Target Market:
Fruitos primary target market is children from toddlers to earl teenagers. While it’s secondary
target market are the mothers. All four Ps of Fruitos have been designed by keeping in mind the
likes and dislikes of both of these markets. The quality of Fruitos for being healthy is attractive
to mothers while various flavors offered are attractive for the children.
Target markets profile:
Geographic dispersion Urban Suburban
Social Stratification
Upper-upper class
Lower-upper class
Upper-middle class
Age Segments Children (toddlers to early teenagers)
Mothers (18-45)
Income
Average or above average
(50K-100K per month)
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9.6 Product Positioning:
Fruitos will be positioned as a “Premium taste and quality nutritious cereal for the kids” in the
minds of the target audience. In order to position our product we must create a strong brand
image and brand personality. We will have to promote our brand name in such a way that it
makes very known all over the Pakistan. And we must position Fruitos as a no. 1 leading brand
in the market of breakfast cereals.
In order to gain this position in the minds of its audience Fruitos promises them for the following
qualities:
Low sugar meal
Ready to eat breakfast
Iron rich
Just for kids
A healthy start for your day
Fuel for your kid
Fiber booster
A combo of fruits, yogurt and nuts.
10. MARKETING MIX STRATEGY:
Product:
Fruitos is a brand of cereals made by Engro Foods Limited. This is the first ever cereal range
designed by Engro Foods Ltd. Fruitos is a range of breakfast cereals especially designed for kids,
in order to fullfil their nutritional needs and provide them a healthy breakfast with high fiber and
protein contents.
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Sizes:
Fruitos is available in different sizes. It is available in following packet sizes.
100 grams
375 grams
500 grams
700 grams
Fruitos Ingredients:
Cereal Grains (Whole Grain Wheat, Maize, Rice Flour),Iron, Fruit chunks, Honey ,
Yogurt extracts , Almond nuts, Hazel nuts, Sugar, Cocoa Powder, Dextrose, Palm Oil,
Salt, Tri sodium Phosphate, Flavoring: Vanillin, Vitamins and Minerals: Vitamin C,
Niacin, Pantothenic Acid, Vitamin B6, Riboflavin (B2), Thiamin (B1), Folic Acid,
Vitamin B12, Calcium carbonate and fiber.
Nutritional Information for Fruitos per 100 grams serving:
Typical Value Per 100 grams
Energy 360Kcal
Total Fat 1.75g
Saturated Fat 0.15g
Cholesterol 0mg
Carbohydrate 3.6g
Fiber 10g
Sugar 3.2g
Protein 6.8mg
Riboflavin 0.34mg
Iron 4.8g
Magnesium 30mg
Niacin 3.27mg
Thiamin 0.5mg
Shape and Color:
The shape and color of Fruitos are quite attractive for the children.
Flavors:
Fruitos is available in ten super cool flavors in order to cater the needs of its customers on
a wide range. All of these flavors are both tasty and healthy at the same time. Nuts, honey
and yogurt extracts are the essential part of every Fruitos pack. Fruitos offers the most
unique and coolest range that provides you with fresh fruits goodness, rich honey
expedition with yogurt extracts. It is the best cereal to shake up your wake up. The
following flavors of Fruitos have been designed:
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Orange Pulp
Banana Nut
Strawberry Mix
Apple Maza
Pineapple Punch
Mango Mash
Grapes Gulp
Pear Punk
Naughty Guava
Coco Choco
Labeling and Packaging:
Engro Foods brand name and logo are the essential part of labeling. The packaging of
Fruitos clearly shows the ingredients and the nutritional value per 100g serving. It also
contains manufacturing date along with an expiry date. Price of each packet has also been
clearly shown on every packet. Special features related to every flavor are mentioned on
the packets so it becomes easier for the customers to get the cereal of their choice. The
packets have been designed very carefully and their color scheme and layout have been
designed in way which is attractive for the children.
Competitive Advantage:
Following are the competitive advantages of Fruitos as compared to its competitors.
A Combination of Fruits, Honey, Nuts and Yogurt extracts:
The foremost competitive advantage of Fruitos is that it offers you the best
combination of fruits, honey, nuts and yogurt extracts in one packet. You come across
breakfast cereals that provide you with fruits goodness and honey extracts. But you
will not be able to find all these perks within the same packet. Here comes Fruitos
with its unique combination of fruits, honey, nuts and yogurt extracts. Nuts and
yogurt extracts are the unique feature about Fruitos that you would not find in any
other cereal. Fruits, honey, nuts and yogurt means the bowl of your kid will contain
all the essential nutrients in order to fulfill the daily energy needs. There may be
different types of fruits depending upon the flavor that you choose but honey, nuts
and yogurt extracts are the essential parts of every pack that you buy.
34. 34 | P a g e
Unique Nutritional value:
Each packet of Fruitos that you will buy promises you to deliver a unique nutritional
value that you will not be able to find in any other cereal.
Low Sugar:
Fruitos has been specially designed to contain low sugar content as it is not
healthy for the growing kids. All the other breakfast foods like breakfast bars and
cookies etc contain a very high sugar content which is a drawback when it comes
to their nutritional value. Fruitos provides you tasty flavors that contain very low
sugar content.
High Iron and Fiber:
Fruitos contains high iron and fiber content which enriches its nutritional value.
Due to this unique feature it serves as the best breakfast cereal because it provides
the fuel for whole day to your kid.
Protein Booster:
In addition to high fiber and iron Fruitos has also been positions in its target
market as a protein booster. Proteins are very essential for growing kids so in this
way Fruitos serves as the best meal for your growing kids.
You will find cereals with low sugar, high iron and fiber, protein richness but you will
never find all these qualities within the same cereal bowl.
Available in Ten Super Cool flavors:
Fruitos is available in ten super cool flavors providing you with the rich fruits
goodness. Fruitos offers you a range of flavors which contains apple, strawberry,
mango, orange, guava, banana, pear, pineapple, grapes and a very unique flavor that
provides you coconut and chocolate experience at the same time.
35. 35 | P a g e
Price:
The price of Fruitos has been set according to the size of the packet.
Size Of Packet Price in Rs.
100 grams 75.00
250 grams 150.00
375 grams 200.00
500 grams 300
700 grams 500
900 gms “Trunk pack” 650
1000 gms ”Trunkpack” 800
Profit Margin:
The profit margin of Fruitos will be high because of its high quality.
Scale of prices:
The prices of Fruitos have been set in such a way that large number of customers may be
able to buy it.
Effect of competitors on prices:
We will not keep in mind the prices set by our competitors because we offer a unique
combination of nutrients that nobody eels does. So in order to secure our profit margins
as well we shall only concentrate upon our own cost of making the product and set the
price in such a way that it covers our cost of production and also provides a handsome
profit.
Price refund policy:
The company will never return the paid amount back as this rule is also followed in its
milk range of Olper’s and ice cream range of Omore. However the company may replace
the product.
Price discounts:
As a new product in the market Fruitos will obviously have to introduce some price
discounts in order to attract greater number of customers. it offers a free 100 grams pack
of Fruitos to customers who buy 2 packs in bundle.
36. 36 | P a g e
Place:
Location of Outlets:
Fruitos will be distributed all over Pakistan regardless of big and small cities. However
the target market for Fruitos is basically the urban population.
Direct Sales:
The company will also make direct sales with distributors.
Transportation modes:
Engro Foods Ltd uses roads as a mode of transportation for its products so in the case of
Fruitos as well this mode of transportation will be used.
Promotion:
Promotions through TV:
Fruitos will choose television as a source of promotion. The leading TV channels like
Geo, ARY Digital, PTV and Hum TV will be paid in order to broadcast the
advertisements.
Promotions through newspaper:
The company will also choose newspaper as a source of promotion for these products.
Advertisements of Fruitos will be published in the leading newspapers of country like
Daily Jang, Dawn and The News etc.
Online Promotions:
We will also create a website for Fruitos which will contain every type of information
relevant to the product. Information regarding the product features, quality, price and
delivery methods will be available on the website. Customers will also be able to contact
the company through this website and will be able to provide their feedbacks. In online
promotions the company will also promote the product through social media like
Facebook, twitter, Instagram etc.
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Promotional Budget:
Satisfactory percentage of money will be allocated for promotional activities from the
total budget of the brand.
11. ALTERNATE MARKET PLAN
If this market plan does not work we will go for another marketing plan. Just to be on the safe
side we must also do some homework regarding another marketing plan which we can execute in
case of the failure of the designed market plan.
Characteristics of the Product:
The product launched in this market plan will contain following characteristics:
Unique taste of coffee which is not found in any other local chocolate brand.
The coffee is frozen along with fresh cream and milk.
Each ice cream bar contains chocolate chips held between frozen coffee and milk
cream.
This flavor will be very attractive for coffee lovers.
Market Potential:
The market potential for Omore is already very high. Omore is a renowned name in the ice
cream market and has a strong brand name and brand image. This unique flavor will have high
market potential because we have large number of coffee lovers among us and they never
experienced taste of coffee in frozen ice cream. So it will be attractive for them. And there are
high chances for the product to be successful.
Target Market:
The target market for this flavor will be coffee lovers. The coffee lovers in the society mostly
belong to the upper middle class or the upper class only. So the target market will have a high
standard of living, will belong to urban areas, will have high education standards, will be class
conscious. The age group for our target market will be from early teenagers to the people in their
late 40s.
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Product Positioning:
Omore will position this product in the minds of its target audience as the only product that
offers the taste of frozen coffee in the form of ice cream throughout the local market. This
product positioning will only be possible through strong advertising. Omore will spend large
sums of its budget for the purpose of advertisement so that people must get aware of this new
flavor.
Marketing mix strategy:
Product:
This new ice cream flavor named as “Coffee Crunch” will be launched by Omore, a
brand of Engro Foods Ltd. This will be a very unique flavor in the local ice cream market
as it is not yet introduced by any other local ice cream company.
Size:
This new flavor will also be offered in the standard sixe which is mostly set by
Omore for its other flavors as well. It will be present in form of ice cream bars as
well tubs.
Shape and color:
The shape of this flavor will be similar to one used for other Omore flavors and
color will be coffee brown in order to give it an intense look which will be
attractive for coffee lovers.
Labeling and Packaging:
The brand name and logo of Omore will be prominent on the packaging. The
color of packaging would be set in accordance with the specialty of the flavor.
This means the company must use coffee brown color for packaging of this
flavor. An expiry date along with the manufacturing date will also be mentions on
each packet.
Competitive advantage:
The unique mix of frozen coffee and milk cream will be the competitive
advantage for this newly introduced flavor. This flavor has not yet offered by any
other local company in Pakistan.
39. 39 | P a g e
Price:
The price will be set so as large number of customers should be able to afford it. But the
profit margin of the company will also be kept in mind.
Place:
Omore already has outlets all over the Pakistan. This flavor will be delivered to all the
outlets already operating within the country. The company also makes direct sales with
the distributors which in turn distribute the product to far off places.
Promotion:
Omore uses large sums of budget for the purpose of promotion. In order to make the
target audience aware of the unique taste of this flavor large scale promotions will be
made. Omore already uses TV, newspapers, magazines and online advertisements for its
promotion.
12. PROMOTIONAL PLAN:
12.1 Promotional Activities:
Sr.
No
Start Date End Date Activity Budget Person
Responsible
Department
1. 1 Jan 2016 30 April 2016 Advertising
through TV
commercials
50 lacs Mr. Ahmed
Niaz
Marketing
2. 10Jan 2016 30 April 2016 Advertising
through
Morning
shows
35 lacs Mr.
Abdullah
Shahid
Marketing
3. 1 Jan 2016 01 Aug 2016 Online
Advertising
30 lacs Ms. Shazia
Kausar
IT
4. 1 Jan 2016 30 May 2016 Newspaper
Advertising
37 lacs Mr. Naveed
Mehmood
Marketing
12.2 Implementation of Promotional Plan:
The promotional plan involves a set of promotional activities. The start and end dates as well as
the budget allocated for each activity has been mentioned very clearly. One person has been
chosen from every department to execute this promotional plan. The advertisement through TV
40. 40 | P a g e
commercials has been given the greatest weightage among all the other activities because our
target market is kids and the mothers and they mostly come across advertisements on television.
Furthermore children get attracted towards colorful and bright things by making such kind of
creative advertisements we will surely be able to target large number of customers.
Today morning shows are a hot trend in media. They are mostly watched by housewives and
other family members as well. So morning shows are great medium in order to promote our
Fruitos. As Fruitos gives a healthy breakfast to your child so morning show will be the best
possible way to promote Fruitos. Therefore great amount of budget i.e. 35 Lacs have also been
allocated for this purpose.
Newspapers are also an effective means of promotion nowadays. Print ads seem to be more
attractive and memorable for the audience so a part of budget has also been awarded for it.
Although online advertising is an effective way of promotion but in case of our product it is not
an effective plan because our target audience are children and mothers which are not much
connected to social media or are not much inspired with it.
People from Marketing and IT departments will supervise the promotional activities and they
will make sure that proper promotion of the Friutos is being done.
13. MEASUREMENT REVIEW AND CONTROL:
Before making the whole marketing plan and designing all the 4 Ps of our new product we had
set some marketing objectives which are listed as below:
Launch a new product line
Target new customers
Enter new markets locally
Grow market share
Increase sales
At the end of making the promotional plan and then executing all the promotional activities the
next stage is to measure the outcomes and make a review. At this step we analyze whether the
goals which we had set are accomplished or not. If the goals which we have set are not
accomplished then in this case we either go for the plan B or we take some emergency
measurements. We find out the points at which we are lacking and then take the corrective
actions. It is an important step because without reviewing our performance we will not be able to
find out whether we achieved pour required goals or not. This process of review in our marketing
plan will be completed by authorities and top management staff.
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14. REFERENCES:
Principles of Marketing by Philip Kotler & Gary Armstrong – Text Book
http://www.slideshare.net/coolusman000/engro-foods-marketing
http://www.brandsynario.com/engro-foods-revamps-olpers/
http://jsglobalonline.com/researchReports/Engro%20Foods.pdf
http://www.csrcp.com/Reporting%20Data%20Base/Search%20Sustainability%20Reports
/2012/reports/Engro-Corporation-Limited-Sustainability-Report-2012.pdf
http://www.slideshare.net/muhammadassadfahimkhan/engro-foods-23059854
http://www.scribd.com/doc/32075020/Engro-Foods-Marketing-Recruitment#scribd
http://chaand.weebly.com/uploads/4/2/4/5/4245131/strategic_management_final_assignm
ent.pdf
http://www.slideshare.net/Elijan877/engro-foods
http://www.engrofoods.com/ourbrands.html
http://www.marketing91.com/marketing-mix-nestle/
http://www.marketing91.com/marketing-mix-of-engro-foods/
https://en.wikipedia.org/wiki/Market_trend
https://www.marsdd.com/mars-library/how-to-estimate-market-size-business-and-
marketing-planning-for-startups/
http://www.dawn.com/news/1124489
http://www.taurus.com.pk/research/pdfreports/Sep11'12.pdf
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15. APPENDICES:
1. Introduction
1.1 History
1.2 Values, Behavior & Culture
1.3 Core Values
1.4 No. of Employees
1.5 Share Holders Earning Per Share
2. Corporate Objectives
3. Market Overview
3.1 Market Size
3.2 Market Trend
3.3 Market Share
4. Internal Audit
5. External Audit
6. SWOT Analysis
7. PEST Analysis
8. Assumptions
8.1 Purpose & Mission of Marketing Plan
8.2 Situational Analysis
i) Current Product
ii) Current Target Market
iii) Current Distribution Network
iv) Current Competitors
8.3 Marketing Strategy & Objectives
8.4 Budgeting, Performance & Implementation
8.5 Ways of Marketing
9. Marketing Objectives & Strategies
9.1 Setting Marketing Objectives
9.2 Characteristics of the Product
9.3 Market Potential
9.4 Market Segmentation
9.5 Target Market
9.6 Product Positioning
10. Marketing Mix Strategy
11. Alternate Market Plan
12. Promotional Plan
12.1 Promotional Activities
12.2 Implementation of Promotional Program
13. Measurement Review and Control
14. References
