1. Strategic Marketing and Planning Term Project
Muhammad Minhaj Siddiqui
Muhammad Saad
Sabina Bhagat
Mirza Fazal

2. Business Scope
• Pakistan is the 4th largest milk producer country in the world having milk
production 36.2 million tons
• Engro foods is one of the biggest and fastest growing businesses in Pakistan
and its vision is to provide products meeting global standards to local
consumers.
• Engro’s business scope is to provide consumers with daily use products
conforming to international standards in terms of quality, health and taste.
Causes
• Increase in UHT Process Milk Market
•Pakistan is the 2nd largest country of buffalo milk producer
in the world
Effects
Consumers are shifting from gawala milk to tetra pack

3. Business Scope
• Regions: The business operates nationwide with a number of distributors and
wholesaler providing Olpers to its customers.
• Products: Its product portfolio comprises some of the country's biggest and best
selling brands including Olper's, Olper's Lite, Omore, Dairy Omung, Olper's Lassi
and Tarang
• Functions / Applications: Milk for tea, milk for kids, milk for daily drinking,
vitamin D with high calcium and milk for fitness
• Customers: House holds from upper class, upper middle class and middle class
• Technologies: Ultra Heated Treatment for killing bacteria
Causes
• Consumers are moving towards hygienic milk
• Consumers can preserve the milk for long time
Effects
• Nationally increase in sales for last five years
• Customer can buy the milk with its monthly grocery

4. Market Players of UHT Milk
Year Of
Current
Owners
Company
Name
Brand
Name
Market
Share
Nationally
Geographic
Coverage
1981 Nestle Milk Pack 42% National
2006 Engro Foods Olpers 48% National
2006
Shakarganj
Food
Products
Limited
Good Milk 4% National
2009 Dairyland Dairy Fresh 3% National
1984
Haleeb
Foods
Haleeb Milk 2% National
42%
48%
2%
3%
4% 1%
Nestle
Engro
Haleeb
Day fresh
Shakarjang
Other

5. End User
Application
low-fat, Vitamin D,hi-
calcium milk that can
boost energy, without
the extra calories
Milk for
tea/coffee
Milk for Kids Milk for
Daily
Drinking
External Analysis
Market Structure
Olpers Milk,
Nestle
Milkpak
Olpers Milk,
Nestle Milkpak
Olpers Milk,
Nestle Milkpak Nesvita
Olpers lite,
Nestle Nesvita
Product
Channel
General Trade Food Services
Modern Trade
The Company
Milk for fitness

6. Market Size– Past 4 Year
Analysis:
 The industry has seen increase in consumption
of milk from various segments over the past
years.
 Emerging segments over the years have been
milk for fitness, multi vitamins and separation
of milk for tea/coffee from milk of daily
drinking.
 New segment in which currently no UHT
Treated milk is functioning is milk for
traditional sweets in which unpacked milk
market has the highest share.
 Olpers has declining market size from 2011 –
2013 due to their distribution network
 Milkpak market size was declined in 2014 due
to their low production of main SKU’s in
1000ml and 250 ml.
Value in Billion PKR
MARKET
SEGMENT
2011 2012 2013 2014 2015 P.A. %
Milk for
Tea/Coffee
41.25 43.45 43.45 44.55 45.1 15%
Milk for Kids 22.5 23.7 23.7 24.3 24.6 13%
Milk for Daily
Drinking
7.5 7.9 7.9 8.1 8.2 10%
Multivitamins
Milk
2.25 2.37 2.37 2.43 2.46 9%
Milk for Fitness 1.5 1.58 1.58 1.62 1.64 10%
TOTAL
(INDUSTRY)
75 79 79 81 82
Volume in Liters (Million)
MARKET
SEGMENT
2011 2012 2013 2014 2015 P.A. %
Milk for
Tea/Coffee
0.66 0.055 0.44 0.77 0.99 14%
Milk for Kids 0.36 0.03 0.24 0.42 0.54 12%
Milk for Daily
Drinking
0.12 0.01 0.08 0.14 0.18 8%
Multivitamins
Milk
0.036 0.003 0.024 0.042 0.054 10%
Milk for
Fitness
0.024 0.002 0.016 0.028 0.036 9%
TOTAL
(INDUSTRY)
1.2 0.1 0.8 1.4 1.8

7. Value in Billion PKR
MARKET SEGMENT 2016 2017 2018 2019 P.A. %
Milk for Tea/Coffee 4.7 4.9 5.02 5.076 15%
Milk for Kids 3.2 3.2 3.3 3.4 13%
Milk for Daily Drinking 4.6 4.4 4.3 4.2 9%
Multivitamins Milk 2.5 2.6 2.8 2.8 10%
Milk for Fitness 0.8 0.82 0.83 0.85 9%
TOTAL (INDUSTRY) 15.8 15.92 16.25 16.33
Assumptions:
 The UHT milk industry receives consumer acceptance and
purchases remain on similar trend.
 New segments continue to gain market share by
introducing new products for that segment.
 Special packaging is introduced so as to adapt the product
to consumer lifestyle.
 Government policies and regulations remain stable.
Market Size – Future 4 Years
Volume in Liters (Million)
MARKET
SEGMENT
2016 2017 2018 2019 P.A. %
Milk for
Tea/Coffee
1.1088 1.1286 1.1385 1.1286 15%
Milk for Kids 0.6048 0.6156 0.621 0.6156 13%
Milk for Daily
Drinking
0.2016 0.2052 0.207 0.2052 10%
Multivitamins
Milk
0.06048 0.06156 0.0621 0.06156 9%
Milk for
Fitness
0.04032 0.04104 0.0441 0.04104 10%
TOTAL
(INDUSTRY)
2.016 2.052 2.0727 2.052

8. Product Lifecycle
Analysis:
 Good Milk and Dairy Fresh are the new
entries to the UHT Treated market and are
at their introduction phase.
 Olpers and Milk Pack are currently at their
growth phase section. Now both should
be thinking on tapping to new markets
that is going for product extension.
 Haleeb, on the other hand, is on its
maturity/decline phase where it is
needed to come up again to gain the
market share.
Haleeb
MilkMilk Pack
Olpers
Dairy Fresh

9. Competitions Segment Matrix:
Competition
Market
Share Segments
Over
all
Milk
for
Tea/C
offee
Milk
for
Kids
Milk
for
Daily
Drinki
ng
Multi-
vitami
ns Milk
Milk
for
Fitnes
s
Olpers 48% 40 15 40 - 5 100
Milk Pack 42% 20 20 40 10 10 100
Good Milk 4% 10 20 50 0 10 100
Dairy Fresh 3% 60 10 30 - - 100
Haleeb 2% 70 5 25 - - 100
Total 100
Historical Growth 16.9 5.9 5.15 3.36 1.86
Projected Growth 18.25 6.55 5.15 4.55 2.55
Company Profitability 55% 30% 10% - 5%
Analysis:
 Companies’ major share is currently in
milk for milk for tea/coffee and Kids
 Company has potential for milk for
fitness and multi vitamin milk segment
where the competitors are not even
strong.
 Company can increase its profitability
in the milk for kids segment.

10. ANALYSIS
Increase in the modern trade and
decrease in the general trade due to
super marts like Imtiaz, Chase up etc
Consumer are shifting from Kiryana to
supermarkets
Change in consumer buying behavior
DISTRIBUTION STRUCTURE: SHIFT FROM 2011 TO
2015
% OF RS
MIL
Olpers Milkpak Olpers Milkpak
Shift in
years 2011 2015 2011 2015 2016 2019 2016 2019
General
Trade
70.00% 55.00% 68.00% 42.00% 55% 35% 42% 30%
Food
Services
10.00% 5.00% 16% 20.00% 5% 7% 20% 25%
Modern
Trade
20.00% 40.00% 16.00% 38.00% 40% 58.00% 38% 45%
Total 100% 100% 100% 100% 100 100% 100 100%

11. Distribution Shares And Company’s Position
% OF PKR
MILLION
INDUSTRY
DISTRIBUTIO
N
OLPERS
TURNOVER
SHARE
NESTLE
TURNOVER
SHARE
General
Trade
77 78 72
Food
Services
8 7 15
Modern
Trade
40 30 28
It can be observed
that most of Olpers
sales occur through
trade which includes
retail stores,
superstores, super
markets etc.
ANALYSIS:

12. Driving Forces And Trends In The UHT Milk Industry
Hygienic Milk
Purity
Thickness
Complete Nutrition's
Easy to use
Long term storage

13. External Factors
There are various reasons for the growth of the UHT market
such as
• People prefer more hygienic milk as compared to gawala
milk
• Government can ban the gawala milk due to hygienic issues
• People can easily store the milk for long period
• Complete nutrition is available in UHT Milk
• Easy to use without boiling

14. People use tetrapak Milk specifically for sweet dishes
People can consume more milk if it is available at their door step
Low price with good quality milk can increase growth
Vitamin D with high calcium milk is the emerging segment which is recommended by doctor
TOP – External Trends
Trend Potential Impact We T
More Hygienic and thick
Multi uses for desert and sweet
dishes
Yes Yes
Availability
Fastest delivery at home
through one call
No No
Low price with good quality milk opportunity No No
Vitamin D High calcium milk Opportunity No Yes

15. KEY INPUTS FOR STRATEGY FROM EXTERNAL ANALYSIS
1. Lack of self-owned distribution network thus having less in-depth coverage of market.
2. Higher cost due to transportation of milk form one major plant to all cities.
3. Emerging segments of health and specifically fitness conscious people. Catering to
them would increase the market share.
4. Most profitable segments like tea/coffee and daily drinking of milk needs to be further
tapped in various regions.
5. Entering into markets that will buy in bulk quantity i.e. institutional selling. This would
involve partnering with Hotels, café, Hospitals, Offices, Educational institutions, Airport
etc.
6. Maintain and increase the Top of the Mind awareness for product.

16. SWOT - ANALYSIS
Opportunities Threats
Strengths Weaknesses
External Analysis Internal Analysis
Promising Opportunities
Only opportunities after improvement
Ability to resist
High Risks
Competitive Advantage(s)?
Constraints to potential business objectives & strategic scenario’s
1. Farmer Funding
2. Growing Consumption
3. Increasing awareness
4. Largest Producer
1. High Price
2. Competition
1-Strong Supply chine Network And
Strong Relationship with Distributer.
2-Growing Market Share
3-Strong Parent Company
4-High Market Penetration
1-Milk collection and distribution cost.
2-Not having their own dairy farm.
3-Geographical Reach in sub-rural area

17. Olper’s
Strengths
1-Strong Supply chine Network And
Strong Relationship with Distributer.
2-Growing Market Share
3-Strong Parent Company
4-High Market Penetration
Weakness
1-Milk collection and distribution cost.
2-Not having their own dairy farm.
3-Geographical Reach in sub-rural area
Opportunities
1-Growing Consumption.
2-Increase the availably of the product.
3-Increase consumption of UHT milk
Through awareness.
SO Strategies
1-Olper’s Have availability in urban market
they just work on awareness and increase
sales.
WO Strategies
1-After providing awareness it can be
affordable in sub areas on interior KPK and
Punjab But for that they need to increase
their product reach.
2-If they own dairy farms they will be cost
controller in industry.
Threats
1-High Price
a) Existing.
b) New.
ST Strategies
1-The threats of high price can become the
strengths of Olper’s if own their dairy
Farms and cut the cost channel.
WT Strategies
1-Karachi, Lahore, Islamabad, Faisalabad
and Rawalpindi Except these 5 cities all
Pakistan contribute less than 50% in
Olper’s market share, so for the rest of
Pakistan they need a good strategy for
increase their sales.
Confrontation Matrix

18. ST Strategies
By changing consumer’s perspective company can shift the focus from enjoying the final end product (e.g. tea, coffee, flavored
milk) to enjoying Olpers. Thus gaining a competitive advantage in the industry and further strengthening its brand recall.
Olpers buying the milk from gowalas, it is important for them to maintain their prices.
WT Strategies
Olpers focus on the big 5 cities for it sales which contribute more than 50% of their overall sales. It is therefore a weakness for
them which will lead to a threat to being confined to specific areas of the country only.
SO Strategies
As Olpers is a renown brand of UHT treated milk, it now needs to further strengthen its market share by making the product
available across the nation i.e. rural expansion.
WO Strategies
Olpers can gain the market share of expanded areas by working of cost cutting measures thus providing consumer of that
geographical area product in affordable prices.
Confrontation Matrix

19. Consumer Buying Criteria:
Relative Importance of Factors:
A consumer survey was conducted in which various questions were asked which are collected below to assess the criteria on
which consumers buy dairy milk.
Factor
Absolutely
Crucial
Very Important
Moderately
Important
Not Important Don’t Want
Brand Name 32% 24% 31% 8% 5%
Packaging 5% 10% 56% 20% 9%
Thickness 30% 35% 25% 7% 3%
Hygiene 56% 41% 3% 0% 0%
Different Usages 44% 38% 12% 6% 0%
Health 63% 30% 7% 0% 0%
Reduce Fats 12% 17% 30% 14% 27%
Availability 44% 36% 17% 3% 0%
Easy to Use 20% 24% 35% 15% 6%
Analysis:
The attribute which is of highest importance
to consumer is that the milk they consume
should provide them health. Moreover,
hygiene is the second most priority of the
consumer. With that come the different
usages like milk for traditional sweets, flavored
milk (jam-e-shereen) etc. Also, consumers
rated the availability of the product on high
importance as they go for a competitor brand
if there brand of milk is not available.

20. Rating Against Consumer Buying Criteria:
Rating of the company and each competitor is done on base 10.
Quality & Price Olpers MilkPack
Non-Price Attribute Weightage
%
Product Related
Brand Name 8% 8.5 8.5
Packaging 10% 7 7
Thickness 18% 6 8
Hygienic 32% 9 9
Different Usages 5% 8 7
Reduce Fats 2% 3 3
Easy to Use 5% 5 5
Availability 20% 6 9
Total 100% 6.8 6.9

21. Analysis:
 Based on consumer buying criteria olpers is doing well by
providing hygienic and healthy product.
 It should improve in domain of availability that is to say that
it should work towards making its product more available
nationwide.
 Olpers as compared to its other competitors is providing
products in packages which are acceptable to the
consumer.
 Areas where Olper’s should work on and question are the
different usages for which it can be used and its use for
fitness.
CUSTOMERS BUYING CRITERIA:

22. KEY ISSUES
• Distribution network of the Olpers in the rural area is
very week
• Thickness of the Olpers Milks is not very good as
compare to its major competition
• High Milk collection and distribution cost
• Unavailability of their own dairy farm

23. Blue Ocean Strategy:
Method Opportunity
Introducing Olpers Delivery Trucks
Olpers can work on its own distribution network and launch a pilot project in which it should
launch delivery trucks for its products. Consumers will be directed to Olpers call-center
where they can place their weekly orders and their weekly (or as required) milk will be
delivered at their homes.
Look for major buyers Olpers can collaborate with various restaurants, cafes,
hotels, offices, hospitals, educational institutions, and
airport etc where the institution will use/sell their
products. In this way, Olpers can increase their market
share by institutional or corporate selling.

24. Strategic Intent:
• Number one UHT Milk provider in Pakistan
• To develop the effective distribution channel across the country
• To own the dairy farm in different regions in Pakistan
• To explore new emerging segments for tea milk
• Most profitable segments like tea/coffee and daily drinking of milk needs to be
further tapped in various regions.

25. Vision:
To become every consumer’s first and foremost choice for milk to be used in every purpose.
Mission:
Our aim is to become a product that fulfills all dairy needs of consumers. We strive to become the one and only
name for quality experience to our consumer and becoming integral part of their lives by complying with global
standards and in a socially responsible manner.
VISION & MISSION

26. Product
As per our input from the external and internal analysis we have concluded that one of the key
issues of Olpers is to explore the new segments like “High calcium milk”
Secondly, Olpers current positioning is “ For all purpose” i.e the general purpose milk, it can be
customized like Olpers for Tea/Cofee etc.
Vitamin D,hi-calcium
milk that can boost
energy, without the
extra calories
Tea & Coffee Kids Daily DrinkingFitness
For relaxing Growth,
increasing height,
Sharpe mind
low calories,
fitness, energetic
Healthy bones Maintaining
Vitamin D for
calcium
Marketing Plan

27. Price Analysis
250 ml 1000 ltr 1.5 ltr
OLPERS 30 110 155
NESTLE 35 120
The Price of Olpers is relatively is not to high to that of the others, Olpers should
continue with same but currently should not increase its price, but its relatively high as
compared the new entrant.

28. Place
The major issues that Olpers face are its availability in depth of
regions. This effects its sales which is currently coming from the
big 5 cities only
It is therefore a weakness for them which will lead to a threat to
being confined to specific areas of the country only.
Olpers should spread more awareness of the usability of its
product so as to increase the market share and customer loyalty.
Pakistan has more than 800,000 retail outlets from which olpers is
supplied only 200,000 retail outlet.

29. Promotion
Vitamin D,hi-
calcium milk that
can boost energy,
without the extra
calories
Tea & Coffee Kids Daily
Drinking
Fitness
ATL/ BTL
Activities in
Offices,
University &
colleges
BTL Activities in
Schools by
showing
motivational
animated
movies
ATL/BTL
activities in
fitness club,
Gymnasium &
sports club
Showing ATL for
spending the
fresh day
Recommendati
on by the
doctors

30. S.R # INPUT FOR STRATEGY ACTION PLAN TIME
FRAME
1 Lack of self-owned distribution network thus
having less in-depth coverage of market.
Establish a self-owned
distribution network.
2 years
2 Higher cost due to transportation of milk form
one major plant to all cities.
Reduce cost in longer run by
establishing another plant
5 years
3 Emerging segments of health and specifically
fitness conscious people. Catering to them
would increase the market share.
Expand into products offering
solutions to consumer needs.
1 year
4 Most profitable segments like tea/coffee and
daily drinking of milk needs to be further
tapped in various regions.
Develop marketing strategies
to target this segment by
innovative offerings
1 year
5 Entering into markets that will buy in bulk
quantity i.e. institutional selling. This would
involve partnering with Hotels, café, Hospitals,
Offices, Educational institutions, Airport etc.
An institutional channel to be
established that caters to
identified potential
buyers/partners
2 years
6 Gap exists in catering the customers through
channel. Home delivery system is the strategy
that can be used to reach directly to consumer.
Introduce Olpers Delivery
trucks for home delivery of
dairy products
1 year