Engro Olfrute, a failed product, relaunch marketing strategy along with marketing communications, concept and budget plan.

1. ENGRO OLFRUTE
MARKETING PLAN
Presented By:
Aimen Shah
Aneel Ahmed Khan
Ayyaz Tanveer
Hussain Iftikhar
M. A. Hanan Rasool
Mir Arooj Hassan
Natasha Hassan
Omair Anwar
Waqas Azeem Bajwa
Presented To: Ms. Maryam Wazirzada

2. Company Introduction
• Subsidiary of Engro
Corporation Ltd
incorporated in 2005
• Major Brands
• Olpers Milk, Tarang,
Omore and Olfrute
•
•
•
•
Engro
Foods
Olfrute
Launched in 2010
Pure Nectar Juices
6 flavors
Failed Launch,
only 1% current
market share

3. Olfrute
Flavors
Mango,
Apple,
Orange
Peach
Guava,
Grape
SKU
200 ml
1 liter
Price
Promotion
Rs. 20 – 25
2 TVCs at
launch
Rs. 90 – 105
Housewives /
Independent
women
Placement
Only few
outlets

4. Competition
Direct
• Nestle
• Shezan
• Minute Maid
Competition
Indirect
• Pepsi
• Coca Cola
• Other Beverage
Brands

5. Competitor Analysis
Nestle Fruita Vitals
Shezan All Pure
•
•
•
•
• Product: Pure Nectars
• Price: Market follower, right behind Nestle
• Placement: Major retail outlets and
department stores
• Promotion: Only at time of launch. Cashing in
on the strong brand equity and awareness
• SKU sizes: 200 ml and 1 liter packs
Product: Pure Nectars and diluted
Price: Price skimming
Placement: Every nook and cranny
Promotion: Psychographic, Young
Adults/couples
• SKU sizes: 200 ml and 1 liter packs
Olfrute
Minute Maid
Colas
• Product: Synthetic pulp juices. Just introduced
new flavor
• Price: Market skimming strategy
• Placement: Available at most retail outlets, large
and small
• Promotion: Aggressive brand activation at
launch, backed up by TVCs in summers
•
•
•
•
•
Product: Pepsi and Coke
Price: Market penetration pricing
Placement: Every nook and cranny
Promotion: Aggressive year round promotion
SKUs: 250 ml., 500 ml., 1 liter, 1.5 liters.,
2.25 litres.

6. SWOT
Strengths
Weaknesses
• Parent company
support
• Low financial
constraints
• Effective, in place
distribution networks
• Engro foods has
established a strong
brand image
• Lack of effective
communication in
their ads
• No well defined
target market
• Olfrute has already
failed
Opportunities
Threats
• Growing market
• People shifting from
soft drinks to more
healthy drinks
• The “healthy’’
product market is
expanding
• Competition
• Nestle’s strong
market influence as
it is well placed
• Increasing number of
substitutes

7. Marketing Objectives
• Replenish
energy
• Quench
thirst
• Taste
Consumer
Objectives
USP
Marketing
Objectives
• Become the most preferred
fruit juice drink in Pakistan
• Consumer perception of
best quality fruit drink
• Identify and implement
unique and effective brand
positioning
• Attain high brand loyalty
• Be the best value for
money brand
• Capture 15%
market share within
the first year of
implementation of
this marketing plan
• Increase market
presence through
proper utilization of
Engro Foods
distribution
channels
Marketing
Targets
“A juice which provides an instant surge in energy, which
quenches thirst and has a pleasant taste from the first sip to the
last, resulting in an experience of a refreshing sensation for the
consumer.”

8. Proposed Marketing Strategy
STP
Marketing Strategy
Action Programs
Marketing Budget


9. Segmentation, Targeting &
Positioning
Segments
Identified
• Housewives
• Working Women
• Professionals /
Executives
• Teens
Targeting
Positioning
• Teens
• Maximize lifetime
customer value
• Bring about a
change in mindset
– change the
perception of fruit
juices
• Lifestyle and
psychographic
• Young, active, health
conscious,
adventurous teens
• Focus on the
functional features of
the product

10. AIDA Model Approach
Awareness
Create interest
through teaser
campaigns at relaunch + brand
activation
Interest
Desire
Action = Sales
Spread awareness
about Olfrute and
benefits of fruit juices
(energetic, healthy)
Desire: Brand
Ambassadors which
will appeal the
youth

11. Action Plan – Product
Differentiation
Change in
Packaging
Change in
Packaging
New Flavors
– Exotic
variants like
Passion fruit
• New SKU of
330 ml
• Introduce
bottles for 330
ml and 1 liter
• Pack design
change for 200
ml juice packs
(no straw, just
rip and sip)
• Design change
– half red
(brand
association
with Olpers)
and half fruit
colors

12. Action Plan – Pricing Strategy
Price Skimming
• High quality premium juice brand
Match prices with Nestle
• We are competing on product
differentiation and not on pricing

13. Action Plan - Placement
Engro Foods
Olfrute
• Robust
distribution
network in
place
• High
market
presence
and reach
• Utilize
Engro’s
established
distribution
network for
retail stores
Teen
Focused
• Schools,
Colleges
and
Universities
• ‘Khokhas’
and tuc
shops too

14. Action Plan – Promotion
Strategy
Brand
Activation
 Concerts
and
campus drives
 InterUniversity
Battle of the
Bands
competition
ATL
 Teaser
Campaign
for 15 days
 Unveiling
of Complete
campaign
 TVCs
Radio
BTL
 Trade and
Retail
promotions
 Billboards
 Print
media

15. Promotions Strategy – 1st
Quarter
Brand Activation
Drive Starts in
popular schools
and universities –
12 concerts in 12
months
Teaser Campaign
for 15 days on
TVCs, Radio,
Billboards and Print
Media
Unveiling of the
main campaign
and the brand
ambassadors

16. Teaser Story line
Teaser
Ad 1
Teaser
Ad 2
• Old Jingle ‘Taazgi Jagaa Re’
• Singing Whistle tune (unable to complete
the tune)
• Guy’s feet walking in the park (Person not
shown)
• Morning time
• Rip and Sip
•
•
•
•
Story continuations
Woman’s feet walking (Person not shown)
Also trying to complete a whistle tune
They meet and drink some thing (Rip and
Sip)
• Jingle completed

17. Promotions Strategy – Quarter 2 &
3
Introduce the new flavors
Introduce Trade Promotions and retail incentives
Continued focus on campus drives and concerts
Maintain media presence on TV, Radio, Billboards
and Print media

18. Promotions Strategy – Quarter
4
Brand
Activation
ATL and
BTL
• Campus Concerts coming to an
end
• Battle of the Bands – Inter
university competition
commences
• Maintain media presence but not
as aggressive as before
• Focus more on trade promotions
to encourage distributors to carry
Olfrute and its variants

19. Media Planning
TVCs
• Time Slots- 7 pm
to 10 pm
• Geo TV, Aag,
Play, 8XM, Hum
TV, Oxygene,
Geo Sports
Radio
Commercials
• Time Slots- 7 am
to 9 am, 3 to 6
pm, 1pm to 2 am
BillBoards
• Karachi, Lahore,
Islamabad,
Rawalpindi,
Faisalabad
Brand
Activation Concerts

20. Marketing Budget
Marketing Budget Breakup (PKR Mil)
TVCs
50%
216
Radio
15%
65
Print
10%
43
BillBoard
15%
65
Brand Activation
10%
43
Total (PKR Mil)
432

21. Sales Forecasting
Top Down Approach to
forecast sales
Juice Market (Nectars and
Still Drinks) stood at 128
million litres
• Market growth at 13% CAGR in
2012
• Expected beverage inflation is
estimated would be around 13%
CAGR
• Olftrute Nutrina target market share
of 15% in 2012

22. Quarterly Sales Projections
2011(A) 2012(Q1)
2012(Q2)
2012(Q3)
2012(Q4)
2012(E)
Juice Industry (JN & VASD) Million
Liters
128
33
36
37
38
144
Market growth rate
13%
3%
5%
3%
1%
13%
Engro Market Share
5%
7%
10%
13%
15%
15%
Engro Juice Sales
6.38
2.33
3.56
4.81
5.67
16.37
Beverage Inflation
17%
3%
5%
3%
1%
13%
Price per litre (PKR Mil)
120.00
123.60
129.78
133.67
135.01
135.00
Engro Juice Sales (PKR Mil)
766.14
287.94
462.14
643.56
764.99
2,158.63

23. Income Statement Projection
Projected Income Statement (PKR Mil)
Q1E (2012)
Q2E(2012)
Q3E(2012)
Q4E(2012)
(2012E)
Juices Segment Sales
287.94
462.14
643.56
764.99
2,158.63
less: COGS (74% of sales)
213.07
341.98
476.23
566.10
1,597.39
Gross Profit
74.86
120.16
167.33
198.90
561.24
less: Marketing and Distribution Expenses(20%)
57.59
92.43
128.71
153.00
431.73
5.76
9.24
12.87
15.30
43.17
11.52
18.49
25.74
30.60
86.35
5.76
9.24
12.87
15.30
43.17
Profit Before Taxes (PBT)
5.76
9.24
12.87
15.30
43.17
less Tax (35%)
2.02
3.23
4.50
5.35
15.11
Net Income
3.74
6.01
8.37
9.94
28.06
less: Administrative Expenses(2%)
EBITDA
less: Depreciation Expense+Amortization
Expense

24.  THANK YOU 