Industry over view:

Pakistan is the third largest milk producing country in the world with 32 billion,
liters per year from 50 million animals of which urban consumption is nearly
seven billion liters. However, packaged milk, penetration is mere four percent.
The packaged milk category was started in 1981 by Milk Pak, which was
designed in tetra pack milk within Pakistan. The supply chain involved collecting
milk from rural areas across Punjab, processing the milk through UHT (Ultra-High
Temperature Processing) treatment, and selling it to consumers in uniquely
colored triangular and rectangular packs designed to prolong the milks quality.
Milk Paks Milk Packs were very well received and the brand soon became
synonymous with quality milk. Its first real competition came in the form of
Haleeb, which introduced distinctively blue tetra packs to the market in 1986.
Whereas loose milk was heavily consumed because of heredity reasons which
give preference to loose (un processed) milk. Loose milk was approximately Rs
24 per liter, while processed milk was priced at approximately Rs 38 per liter in
1980s.

Competition:
The key market players in package milk industry are Olprer, Milk pack, Haleeb.
Nestls Milk Pak sales increased in Pakistan's when it became a trusted brand
known throughout the country for its nutritious wholesome goodness and pure
natural taste. Haleeb was the first competitor for Milk Pack, which introduced
distinctively blue tetra packs to the market in 1986.
For promotion, Milk Pak and Haleeb came in with distinctive colors and brand
promises of providing high quality, natural and healthy milk. Milk- Pak utilized
green and white packaging, the color of Pakistan national flag and offered a
brand with the strong equity of Nestle, and its own traditional heritage. It
promised milk with fortification with extra strength of Iron, Vitamin C and Vitamin
A.
Haleeb was recognized as the blue brand, and marketed very differently from
Milk Pak but still talked about product benefit in the form of sab se garha doodh
which means the "naturally thickest" milk. Haleebs promotion also highlighted
the fact that it was milk specially for making tea because of its high fat content.
With the market dominated by two strong, familiar, and widely respected brands,
the marketplace appeared completely impervious to newcomers.

CONSUMER BEHAVIOR
Industry experts believe that the current economic turnaround has contributed to
the growth in the PLM sector, resulting in increased consumer purchasing power.
Another reason for growth is a growing awareness pertaining to health and

hygiene; this factor, coupled with increasing dissatisfaction with loose milk, has
also contributed to growth in this sector. However, in order to make a noticeable
increase in penetration, many challenges and perceptions still have to be
overcome by the PLMCs.
Despite all the promotion the package milk penetration was approximately four
percent, of which mostly consist of urban zone. The biggest barrier then was to
increase penetration is tradition. Milk, even amongst the most urbanized
consumers, was demanded by doodhwala (milkman) at their home on his
bicycle or motorbike, reinforcing the impression that the milk is fresh, natural and
straight from a cow.
This perception that only loose milk is fresh, and therefore healthy and
preservative-free, that has to be overcome, if increased penetration is to occur at
a substantial rate. But now, due to increasing awareness the dairy milk category
is increasing at 28 percent annually.
Recently with the launch of tea whiteners such as the highly successful Tarang,
TeMilk has deterred the market of SEC C as well to switch from loose milk.

Engro over view

Engro Foods Limited is a part of Engro Corporation which was launched in 2004.
They came in introducing new line of dairy products to enter the food business;
the Company has established state-of-the-art processing units in Sukkur and
Sahiwal, along with an ice cream production facility in Sahiwal.
Engro Foods launched Olpers Milk after long tenure of consumer research and
time and money consumption. During this time they are continuing observing the
issues with the packed milk. After three years of their launch Olpers Milk gain
reputation among consumers and now currently holding 30 percent of market
share. Within the dairy market, company now has a diverse portfolio of products
ranging from different types of cream to premium low fat milk.
Top quality brands like Olpers, Tarang, Omore and Owsum have been
successfully launched under the helm of Companys dairy products. To support
these brands and their highest standards of quality, Engro Foods has invested
heavily in milk processing and milk collection infrastructure.
After the success of their dairy products, Engro Foods now plans to venture
beyond the dairy sector. The company has recently acquired Al Safa a fast
growing and established Halal meat brand.
With the vision of Elevating Consumer Delight Worldwide, Companys significant
focus will be towards the global operations in the years to come.

Olpers:
Launch
Fortunately, Olpers was launched when the milk industry had shown a setback
because the current players especially Haleeb were facing some serious quality
issues and this was certainly giving them a tough time. Consumers were really
unhappy with the quality of milk available in the market and this gap was filled by
the launch of Olpers.
The Olpers brand team had a tough situation at hand, coming up with a new
brand was a big challenge itself but coming up with a clutter breaking
communication was the biggest challenge. The functional appeal was a tried and
tested appeal in the packaged milk category but emotional appeal was placed
higher in the brand-value pyramid (Exhibit 2) but it had not been tested in the
packaged milk category. Would it be the right decision to go ahead with the
emotional appeal?
We were in a fix at that point in time, it was a risky decision because we were a
new brand in the market and if we did something different from the rest of the lot
there was a huge chance that it could backfire. Being a local company launching
a high end milk brand was considered a suicidal move by many players in the
market. I cannot imagine their reaction had they known that we were thinking of
using the emotional appeal in our communications. Mohammad Ateeq Khan
The Olpers brand team finally made their decision late one night; they decided
that they have to take the risk. Emotional appeal was the major focus of Olpers
first campaign the advertisement focused on communicating at the emotional
level with the customer. The first campaign (Exhibit 3) was a slice-oflife television commercial contained an emotional touch to it which portrayed a
larger than life image, the ad casted the then most sought after model Sonia
Jehan. The early campaigns had 90 seconds commercials which was not the
norm for the packaged milk industry and ended with a optimistic and vibrant
tagline subhbakhairzindagi meaning good morning life.
The name itself made it sound like a foreign brand, giving the perception of
quality, and was unlike anything previously experienced by Pakistani consumers.
Ateeq continues, We wanted consumers to consider Olpers as a contemporary
and modern brand, and all of our communication and brand attributes were
geared toward ensuring that end.Olpers went with red as its colora color far
removed from the greens and blues that had become synonymous with
packaged milk. It created a whole new perceptual niche for Olpers. The color
also helped to enhance the in-store visibility and presence for Olpers packaged
milk, and the brand was instantly disassociated from its competition.

Olpers positioned itself as an all-purpose milk which was a premium brand for
25-35 year old woman who is from SEC A and SEC B. Anoptimistic, modern, and
a classy woman and one who always wants to improve the standard of living.
The campaign highlighted and expanded upon the various occasions in which
milk could, and should, be enjoyedand kept driving home that message
through its various promotions. Olpersbecame the "All Purpose Milk" and could
be consumed with breakfast or blended with tea, and appreciated by all members
of the family.The brand also worked to ensure it established an image of being a
healthy and natural product.
Launched on March 20, 2006, Olpers milk is EFLs standardized and
homogenized pure UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid
non- fats. It is EFLs premier brand, and the choice of quality-conscious
consumers who only go for the best. It is available in easy-to-open, 6-layered
Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.
Olpers milk is UHT milk which is available in four sizes; 250ml, 500ml, 1000ml
and 1.5ml.
It was certainly a campaign with its own unique identity. It was a complete hit with
the target audience the fact that the campaign didnot focus on showing the
functional aspects of Olpers was readily accepted by the consumers. Soon the
brand had become a voice above the media cluttera voice that differentiated
Olper's brand from the others.The results were a direct increase in sales and a
strong recall for the brand. So that by theend of 2006, sales for Olpers Milk had
reached Rs.1 billion (approximately US$ 15 million) and in 2008, the brand has a
market share of close to 22 percentsecond only to Milk Pak (estimated at 40
percent). Also the Ramadan campaign (Exhibit 4, 5, 6) of Olpers is worth
mentioning. It really did increase the brand equity.

SEGMENTING TARGETING AND POSITIONING

Companies segment the market so that they can target the group of customers
who share similar needs and wants. The milk sector shows a market that has
homogeneous preferences that is the consumers have similar preferences. They
want milk to be white, carefully processed, and good for health and bones.
Keeping these things in mind Olpers market has been segmented. The
marketers at Olpers have had a number of options available to them when
segmenting the market for their products. So far company has introduced three
new products: Olpers milk, Olwell diet milk and Olpers cream.
Demographic Segmentation
Olpers products are not bounded to any particular age, gender or lifecycle stage.
The brand is meant for all the users in higher upper or middle class families.
Even though the brand calls for a small percentage of an individuals income but
lower class wouldnt want to buy the brand maybe because they are price
sensitive or because they believe lose milk is better than processed milk and has

all the nutrients that the processed milk lacks. However, all the companies in the
milk sector are trying to change the image of processed milk as non-nutritionist
milk. Therefore it can be said that Olpers has been positioned as a brand for
high income earners. Due to the income factor involved it can be said that Olpers
milk target a specific social class who are health conscious and concerned about
their weight.
Psychographic Segmentation
On the basis of psychographics, factors such as personality traits, lifestyles and
values, the marketers at Olpers have segmented the market more towards
achievers who are goal-oriented and focused on their careers, and experiencers
those who are seeking variety in the milk sector. For example the ads for Olwell
mostly show achievers who want to be successful, have high aims and are
already doing quite well in their concerned fields. The Olpers products have
targeted experiencers because the company has given them a new set of brand
and so many will make their first purchase because they want to try something
new. Olpers ads also target believers, traditional conservative people with
concrete beliefs. The ads for Olpers show the beliefs of healthy life with
processed milk and plays on the emotional aspect more.
Behavioral Segmentation
Olpers products have been segmented on the basis of benefits that consumers
seek in the milk. In this case, people look for a brand that can be used for all
purposes from drinking to tea whiteners as well to feed the animals. The ads also
show that consumers should increase their milk consumption for example with
every tea they should use Olpers, every morning they should drink Olpers and
everyday they should feed their pets with Olpers milk. There may be some hard
core loyal in the milk sector. Loyalty maybe towards such established brands as
Nestle and Haleeb. There might even be switchers and shifting loyal in the milk
sectors that are either price sensitive or want variety. As a result, the marketers
need to find ways to make the hard core loyal attracted to the Olpers brand and
shifting loyal and switchers to convert into hard core loyal as well.
Positioning of the Brand OLPERS
Positioning involves designing the product and image that will occupy a
distinctive place in the minds of the target market. As can be seen, nestle milkpak
and Haleeb have the largest profit margins and market share in the milk industry.
Thus the marketers at Olpers have decided to create its own unique image and
then strengthen the position in the customers minds. They have done this by
taking a number of following steps:
1) Packaging of Olpers milk and Olwell in red color and Olpers cream packed in
purple color are quite different and distinctive from the typical green and blue
packing used by other competitors.

(2) The brand has been positioned as an all purpose milk that is meant for
everyone, especially for those who live life to the fullest, hence its tag line, jo dil
khol kay jeetay hain unheen kay liyay hai Olpers.
Olpers always tries to create customer intimacy that is it focuses on satisfying
the customers unmet needs. Processed milk is seen as less lacking all the
nutritions that are part of milk due to passing through so many processes. But
Olpers positions itself as milk that has not lost its nutrients. The unique selling
proposition for Olpers is: Subah Bakhair Zindagi, but recently the company
changed the USP to: Jo dil khol kay jeetay hain unheen kay liyay hai Olpers.
Both the tag lines have a very positive impact on Olpers image because of the
emotions involved in both the lines. The marketers have used different
positioning for Olpers products:
a) They have used the attribute positioning for Olpers milk. The main theme of
the product is that it is meant for all purposes without any user imagery. Olpers
ads also show attributes of milk such as good for health.
b) They used the benefit positioning for Olwell. The product is positioned as
delivering the benefit of helping to reduce weight and for healthy bones.
c) Olpers cream is positioned as good for a specific use or application. In this
case the cream can be used to make cake icings and desserts look great.
It can be said that all the different stages have been performed by the marketers
with extreme care and research.

Challenge
But now the sleeping giant had awakened, Nestle Milk Pak with their recent ad
campaign had jumped onto the emotional bandwagon. The main challenge that
Olpers Milk faced now was to maintain product differentiation and break through
the clutter
After Olpers initial launch with the emotional appeal Nestle Milk Pak continued to
underestimate Olpers as a small local brand until Olpers started denting Milk
Paks market share. The increase in the sales for Olpers was a warning sign for
Milk Pak, they had to do something to stop Olpers from taking over the market
but the question was how? Milk Pak choose the easiest option if you cant beat
them, join them. Milk Pak started advertising on the emotional appeal the
subsequent campaigns by Milk Pak had an emotional appeal. In 2010 Milk Pak
came up with a successful campaign by the name of MazbootGharana, the
campaign was based on the emotional appeal that how Milk Pak helped you
build a stronger home. The campaign was effective in putting across the
message to the target audiences and now both Olpers and Nestle Milk Pak
stood at an equal footing in appealing to the audiences.
The main challenge that Olpers Milk faced now was to maintain product
differentiation and break through the clutter. In the past that Milk Pak has
followed all the strategic moves of Olpers such as coming up with emotional
appeals in its communications or launching of flavored milk variants. Olpers has
been the leader in the market as far as coming up with new ideas to differentiate
and this is the problem it faces again. It needs to tell its audience that how is it

different from Milk Pak. This is a challenge which needs to be addressed right
now because if it is not answered Milk Pak will benefit from the whole situation.

Product line:
Olpers Milk:
Engros flagship premium dairy brand, Olper's Milk, is 100% Preservative Free
UHT milk. It is the milk of choice for every occasion as its full cream richness,
fresh and wholesome taste makes every sip a delightful experience for our
consumers.
Known for its supreme quality, Olper's Milk is also the market leader in packaging
innovation where new formats are introduced to make consumer lives hassle-free
in today's time-sensitive world. First ever in Pakistan to introduce the heli-cap for
easy pouring and storing, along with the microwave friendly Mini jug pack with an
air handle and scissor free tear option, this brand continues to offer its
consumers consistent value adding benefits to ensure an enriched brand
experience.
Olper's Milk is available in 3 SKUs:
250ml Mini jug in Ecolean Packaging,
1000ml Edge with cap
1500ml Family Brick in Tetra packaging.
Olpers lite:
The ideal low-fat, hi-calcium milk for adults who want to stay healthy, active and
fit for life, Olper's Lite contains all the inherent nutrients of milk that can boost
energy, without the extra calories that cause weight gain.
Rich in iron and calcium content, Olper's Lite has been specially formulated to
provide nutritional benefits to the growing number of health conscious consumers
in Pakistan, who seek products that can keep their calories in check whilst
ensuring their health, nutrition and well-being.
Available in liquid format, today Olper's Lite is the preferred low-fat milk in the
market with all the necessary ingredients to help adults achieve optimum health
and keep it light by staying calorie and guilt free!
Olper's lite is available in SKUs:
Olpers cream:
The cream of all creams, Olper's Cream is a rich, creamy delight that has
initiated a new trend not just amongst baking enthusiasts and dessert makers,

but also within conventional households, where it is generously splurged over

everyday food items as the primary ingredient to enhance the culinary
experience by transforming in into a scrumptious creamy sensation. Olper's
cream continues to make meal-times, as well as breakfast and afternoon rituals a
rich, creamy celebration day after day.
Olper's Cream is available in SKUs:

Olpers flavored milk:

Inspired by the traditional flavors of badam, zafran and rose, Olper's flavored milk
caters to a diverse cross-section of consumers, with a penchant for natural
ingredients infused in rich, creamy and aromatic milk.
Launched in 2011 and available in 250 ml packs, Olper's Badam Zafran and
Olper's Rose present the rare combination of great tasting milk fused with the
natural flavors of badaam, Zafran and Rose for discerning customers seeking a
wholesome experience of nutrition, taste and tradition.
Olper's Flavored Milk is available in SKUs:
Badam
Zafran
Rose
Olpers lassi:
Olper's Lassi is a refreshing liquid snack that combines the goodness of milk &
yoghurt. This traditional beverage, in its vibrant & contemporary Tetra Edge
Packaging, is available in four flavours, Sweet, Salty, and Strawberry & Mango.
Not only does it boast the authentic taste & texture of Lassi, but through the
helicap, Olpers Lassi gives you the liberty to enjoy the dairy drink in its true
essence by gulping it down instead of struggling with a straw. The Olper's Lassi
250 ML Pack is your partner to beat the heat.
Olper's Flavored Milk is available in SKUs:
Sweet,
Salty
Strawberry
Mango

Packaging:
Engro Foods flagship brand Olpers unveiled new and innovative packaging
formats using holographic technology to create a 3D simulation at a local
shopping mall. The new packaging formats include a new format for the region
that employs Ecolean technology for 250ml, and Tetra Edge for 1 liter pack.

Ecolean also referred to as Olpers Mini Jug is a specialized and convenient jugshaped pouch that offers ease of pouring and handling the pack. It is an ecofriendly and biodegradable packaging with microwaveable capabilities. Tetra
Edge, on the other hand, is a premium-packaging format with benefits of a tilted
head and a heli cap, which controls milk spillage, increases the usability of the
pack and keeps the milk smell-free. Both these are newest innovations in milk
packaging, not just in Pakistan but worldwide.
Olpers has adopted a new packaging technique by providing customers with
easy to use milk containers. The design of the container has also been changed
by changing the logo design but still retaining the original tagline and color
scheme which captures the essence of the product.

Issues at hand
Olpers was in tough situation again, they needed to do something which could
not only put a dent in Milk Paks sales but would actually make them stand out.
They had to come up with a communication which differentiated them from Milk
Pak and at the same time would break the clutter and increase the current
market share. The Olpers brand team started by setting targets for their brand
which were firstly changing the perception of the brand from a very high end
brand to a something which was not perceived very high end. Olpers brand team
wanted to do this because they thought the brand was losing on sales because
the customers perceived it to be expensive than Milk Pak while in reality both the
brands had the same price. Secondly they wanted to put an aspirational appeal
to its communication because the target audience was actually responding well
to this appeal in other product categories thus it could actually help enhance the
brand equity.
We wanted to differentiate but in the meanwhile we wanted that the brand
persona is not lost and the bigger challenge was to threaten Milk Pak as well
because Nestle on a regional level had taken notice of the Pakistani market and
we knew they will be putting money into marketing thus we needed to keep them
at bay. Mohammad Ateeq Khan

Market Share
Engro foods limited is the fastest growing large company listed in the Karachi
stock exchange and its products range from milk and nutrition products to
beverages and ice cream. It is the leader in the market for UHT milk with over
44% market share while it is the second largest player in ice cream segment with
market share of 24 percent. The companys main brands include Olpers,
Owsum, Olwell, Olpers cream, Trang, Olfrute, Dairy Omung and Omore ice
cream.
A lot of consumers are converting from using the open (non Tetra Pack) milk to
UHT milk which has resulted in increasing sales for Engro and has made Engro
foods on a whole the market leader.