Marketing Mix 4P's and SWOT Analysis of OLPERS
Marketing Mix 4P's and SWOT Analysis of OLPERS
FrieslandCampina Engro Pakistan sells its products with three different names i.e
Olpers, Omore, Tarang. However, all of its products are dairy comprising of Milk,
Cream, Powdered Milk, and Ice cream.
The premium brand of the company is Olpers Milk. In addition to all above, Olper
has also introduced Chocolate Flavored Milk to target the younger audience (that
dislike milk).
The milk is packaged in a Tetra Pak Brick Aseptic red packaging and has an
average shelf-life of 3 months.
Customers can more easily track their food's nutritional value thanks to labelling
on the package.
Customers can expect Olper's milk to feature all the elements and fundamental
principles described above to provide optimum pleasure. More than requested will
be supplied to ensure customer satisfaction.
Price:
The competitive market of the country is strong, and price must be set at a
competitive level to obtain the maximum market share.
The prices of competitor’s will be studied and prices shall be placed a little but
lower than the competitors to attract the customers. The prices will then be
progressively increased.
Place:
Company has its own distribution network in 5 major cities i.e., Karachi, Lahore,
Islamabad, Peshawar, and Multan through which it supplies its products. The
company has a network of warehouses and storage facilities in several cities for
efficient distribution.
During Covid-19, the company has strived to maintain its market share by
increasing the sale of products through online distribution channels i.e. Panda
Mart, Cheetay Mart.
Promotion:
The entity’s new advertisement “What makes Happy Mornings?” has been
a huge success resulting in increased sales.
Strengths:
Engro’s Back:
Olper’s is a brand of ENGRO foods. ENGRO foods can easily afford research and
development. ENGRO can distribute the brand through better channel
PR with farmers:
ENGRO has a strong bond and long-term relationship with the farmers who are willing to
supply milk to the company.
Positive response from customers:
In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction
upon FL’s products for its taste, quality proposition and world-class quality proposition
system.
Strong consumer & product research:
AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.
Third-Generation Plant:
Third-generation UHT milk plant in the proposition system technology plant in Central
Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).
Weakness:
Olwell TVC: Olwell ad which is based on Western life style failed to analyze in
Pakistan, where practicing Muslims reside, ignoring the ethics, religious beliefs
and cultural values.
Milk collection and distribution: EFL’s 34 out of 40 milk-collection centers are located
in Punjab, 1Sukkhur (Sindh). It increases in collection & distribution costs, increases
the chances of milk getting spoiled because of increased travelling time.
Opportunities:
Awareness (Growing dissatisfaction with loose milk and increasing awareness about
health and hygiene issues have led to increased processed milk consumption).
Third largest producer of milk (Pakistan with 32 billion liter of milk a year, 3 billion
liters in the next few years, this is quite an opportunity for ENGRO foods as there is
lot of growth in this part of the Sector
Increased funding by government (They decided to increase farmers funding.
Threats:
Competition may pose a threat because the company will have to maintain its leadership
in an expanding market so that it doesn’t lose its market share to its competitors. For
Olpers it might be difficult to penetrate in a market where the loyalties exist for brand
like Nestle Milk Pak.
Another threat is consumer’s perception and price difference. Still, most of the Pakistani
population uses lose milk, and its cheaper than packaged milk.