Marketing Report on:Omoré Ice-CreamBy:Abdul Moiz (37125)Basma Mushtaq (37112)Kashan AhmedZainab SulemanZambeel Hussain24-April-18Submitted as mandatory requirement for the course “Principles of Marketing” in the Program, Bachelor of Business Administration.
TABLE OF CONTENTSS.NO TOPICSPAGE NO.1 COMPANY DESCRIPTION3-42 SWOT ANALYSIS53 PRODUCT DESCRIPTION54 PRODUCT LINE & PRODUCT MIX (WITH PLC ANALYSIS)7-85 COMPETITOR ANALYSIS9-106 MARKET SEGMENTATION117 TARGET MARKET128 PRICING STRATEGY13-159 PROMOTION STRATEGY (& POSITIONING)16-1710 PLACE (MARKETING CHANNELS/DISTRIBUTION STRATEGY)1811 CONCLUSION AND RECOMMENDATIONS19Company Description:Engro Corporation Pakistan:Engro chemical Pakistan limited is the second largest producer of urea fertilizers in Pakistan. The company was originally established in 1965 and first named as Exxon Chemicals Pakistan limited until 1991, then the name was changed to Engro Chemicals Pakistan Limited. When Exxon decided to step out of their fertilizer business on a global basis and sold off its equity of 75% shares in the company. The employees of Engro decided to brought out the Exxon’s equity in partnership with leading institution and then company renamed as Engro Chemicals Pakistan Limited.
- Thesis Statement
- Structure and Outline
- Voice and Grammar
Engro went public and it is listed on the stock exchange of Karachi, Lahore and Islamabad, the core activity of the company is purchasing, marketing and manufacturing of fertilizers. The company is also involved in the production and marketing of seeds and has invested to joint ventures engaged in chemicals related activities. Engro Chemicals Pakistan limited subsidiaries involved in production of fertilizers, Foods, energy, Petrochemicals, trading and processing and chemicals storage and handling.
Engro Food Limited:Engro Food Limited was set up in 2005 as a piece of an extension procedure at the Engro gathering. EFL is a 100% subsidiary of Engro Chemicals Pakistan Limited. The plant is situated in Sukkur on 23-section of land arrive. The plant has the wonderful crude drain gathering abilities of 300,000 liters for every day and UHT drain limit of 200,000 liters for each day. The plant was built up at the cost of 1 billion which gave guide work to 750 individuals. Engro food products are:Daily Products and Beverages:Olper’s MilkOlper’s LiteOlper’s CreamOlper’s TarrakaTarangOmung DobalaDaily OmungFrozen desertsOmoré ice- creamSWOT Analysis:Strengths:Engro as parent company.
Good relations with agriculturists.Customer criticism.Research.Third generation plant- just a single in Pakistan who has it, evacuates bacteria content successfully.Weaknesses:Accumulation of free drain.Milk collection and distribution costs.Opportunities:People switching from loose milk to tetra pack.
Enhancing monetary states of the nation.Pakistan is one of the largest milk producing countries in the world.Threats:Fierce rivalry and competitionDifferent costsOmoré Ice-Cream Product Description:After Walls ice cream, Omoré ice cream is the second immense brand in Pakistan.
The brand of Omoré ice-cream was bring out in 2009. It is assemble by Engro foods limitedProduct Type: frozen dessertOwner: Engro CorporationCountry: PakistanIntroduced: 2009Tagline: Mazzay Ki BiteFrom 6917 million of rupees in 2008 to 6931 million rupees in 2009, Engro has had its gross profit increaseOmoré Ice-cream gross revenue in 2009 was Rs.751 million.Omoré made sales for 10 million beyond in few weeks.
Product Mix:Product mix is a combination of total product lines within a company. The highlighting factors of Omoré are that it tastes better, it is priced much lesser than its competitors, easily accessible and that it provides you the taste of eastern flavor that its competitor are failed to do so.Omoré company has 5 product lines, which together form product mix of Omoré. Total number of products in product mix of Omoré are 43.Product Line:The product line is a subset of the product mix. A product line of a company targets a specific segment and the products of a product line fulfill the same purpose and are closely related.These are the product lines of Omoré.
On a Stick: The first product line contains 12 products.Omoré Fruity LollyOmoré Strawberry LollyOmoré OrangeeeOmoré VroomOmoré Traffic LightOmoré Jumbo ChocheadOmoré Mango Brust Omoré ChocbarOmoré CocobarOmoré Caramel ChocbarOmoré Lick a FlavorOmoré KulfiIn a Cup: This product line has 5 products in it.Omoré FuntiesOmoré VanillaOmoré 2-IN-1 Strawberry and VanillaOmoré Kulfa Omoré MangoIn a Cone: This product line is consisting of 9 different products in it.Omoré Blueberry CheesecakeOmoré Strawberry CheesecakeOmoré Caramel Crunch Omoré Vanilla ChocolateOmoré Vanilla StrawberryOmoré Chocolate CrispiesOmoré Vanilla Choco NutsOmoré Choco Vanilla ChippyOmoré FuntiesExtra Indulgent: In extra indulgent there are 4 products.Omoré the Peanut Butter ExtravaganzaOmoré a Case of Vanilla and Hazelnut Omoré the Chocolate TangooOmoré an Exotic Tiramisu FantasyFamily Pack: There are 13 products in this product line (family pack).Omoré 2-IN-1 Chocolate ; VanillaOmoré 2-IN-1 Mango ; VanillaOmoré 2-IN-1 Strawberry ; VanillaOmoré 2-IN-1 Chocolate ; CaramelOmoré Tutti FruttiOmoré Tropical BlastOmoré Kulfa.Omoré ChocolateOmoré MangoOmoré StrawberryOmoré VanillaOmoré PistaOmoré Badam ZafranPLC Analysis:Competitor Analysis:There is a very tough competition among the competitors in the food industry as big names like Nestle, Haleeb and Engro foods are already competing well. As being new in the market Engro EFL is focusing more on its advertisements in order to make a strong market like its competitors Haleeb, Nestle.
All the companies are continuously working on their marketing strategies in order to grab the market and the customer.Analysis on the base of Market Share:Omoré Market Share is 30%:Piece of the overall industry is 11%. The nation has a market size of 70mn liters of marked frozen desert, while joined with the unbranded area the size ought to be twofold of that sum. Unilever, the main across the nation dealer, overwhelms the marked frozen yogurt section with 60% piece of the overall industry. Followed by Omoré at about 30%, with the rest accounting for about 10% (they include Gourmet, Hico, Igloo and Yummy; their strength is mostly regional). Although Unilever leads by a significant margin, Engro Foods’ frozen desserts and ice-cream segment is gradually catching up, and registered a revenue of approximately Rs 3.66 billion in 2016 – a growth of five percent compared to 2015.
Unilever frozen yogurts have seen 15% volumetric development and 23% CAGR in incomes in the course of recent years (2003-08). Pakistan has for every capita frozen desert utilization of 0.4 liters, in contrast, 22 liters in EU nations. This combined with the likelihood of customers of unbranded desserts moving to marked ones infers upside potential for request development.According to Mir Owais Alam, Marketing Manager (Omoré), Engro Foods, the brand doesn’t want to compete with other players merely on the basis of market share; they want to work on their perception and the quality they deliver to the consumer.
One way to do this is to constantly innovate and introduce new flavors to the table and this is the reason why they launched “Injeer,” “Kairi” and “Candi” in 2017. These are flavors that have never been launched by the branded segment in Pakistan before.”The success of ice-cream business depends on:Some strong cold store cream producers face competition from a host of sweet aspirant. The main part of income created in the frozen dessert industry originates from motivation deals to shoppers searching for a moment fix of sweetness. Producers of cones, sticks and measures of frozen desert need to fight with other comparatively valued nourishment and drink things that likewise offer a quick sugar surge. In such, they are going after an offer in the measure of cash individuals will spend for the sake of entertainment.’fun cash’It is estimated that this year, as fun money, Pakistanis will spend more than Rs.
200 billion. The market for impulse food and drink items such as carbonated beverages, confectionery items, packed snacks and chocolates is expected to grow by 10 per cent annually. Makers of frozen dessert (ice-cream) in any case, have foreseen a substantially higher development and state that by one year from now the market for their items could develop by an incredible 25%. This does not mean that there are no obstacles to the predicted expansion of the ice-cream industry.
Ice-cream sales have not been able to match the sales of traditional items on days when people typically devour high amounts of sugar they offer. For example, on special occasions like Eid, and birthday, kulfi and mithai almost always trump ice-cream sales. Meanwhile, at the other end of the competition spectrum the largest ice-cream brand in the country, Pepsi and Coke spend many times more on advertising than even Walls.Omoré: “It is the biggest blessing for existing ice-cream manufacturers.
“Market Segmentation:Geographic Segmentation:Initially the company only launched its products in Lahore but within a time span of a year they launched in Sahiwal, Karachi, Rawalpindi, Peshawar and Multan. The company’s future plans are to expand in other cities as well but currently because of having their factory in Sahiwal they are covering mostly in Punjab as it saves the transportation cost.Demographic Segmentation:Omoré caters all ages and classes. They have ice-cream cups and ice pops for children, ice-cons for teenagers, while they have family tubs as well.
Behavioral Segmentation:Omoré keeps the customer needs and behavior in mind so for this reason they are planning on launching diet ice-cream for diabetic and diet conscious people. This is a new idea that is catering the market that other companies have still not thought about.Psychographic Segmentation:Omoré ice-cream is for all social class people i.e.
upper class, working class, middle and upper-middle class.Target Market:The target market of the firm includes individuals of both genders male and female, belonging to the age group of 10-45.Sample Size: 1) Experience Surveys: Experienced and knowledgeable individuals in the field will be conducting 3 surveys. 2) Focus Groups: Sessions of 2 focus groups will be held. Consisting of 8 individuals in each group. 3) Survey: From the target population a sample of 135 respondents will be selected.Hybrid model of target marketing is based on,AgeFormat (Cone, Family Pack, Cup)Omoré adopted the historical strategy to survey wide verity to its customer of Omoré products.
To increase its publicity, they do advertising for their brand.Pricing Strategy:Pricing Objectives:Sales volumeProfitMarket growthPricing method:For a high quality offering the company charges a fairly low price using ‘Value Pricing Method.’Market Penetration Pricing: (A product pricing strategy to keep in view the prices of competitors).
Let’s see the product line pricing.Range of individual ice-cream (Rs.30-Rs.100)On a Stick:Omoré Fruity LollyOmoré Strawberry LollyOmoré OrangeeeOmoré VroomOmoré Traffic LightOmoré Jumbo ChocheadOmoré Mango Brust Omoré ChocbarOmoré CocobarOmoré Caramel ChocbarOmoré Lick a FlavorOmoré KulfiIn a Cone:Omoré Blueberry CheesecakeOmoré Strawberry CheesecakeOmoré Caramel Crunch Omoré Vanilla ChocolateOmoré Vanilla StrawberryOmoré Chocolate CrispiesOmoré Vanilla Choco NutsOmoré Choco Vanilla ChippyOmoré FuntiesIn a Cup:Omoré FuntiesOmoré VanillaOmoré 2-IN-1 Strawberry and VanillaOmoré Kulfa Omoré MangoExtra Indulgent:Omoré the Peanut Butter ExtravaganzaOmoré a Case of Vanilla and Hazelnut Omoré the Chocolate TangooOmoré an Exotic Tiramisu FantasyFamily Pack:Omoré 2-IN-1 Chocolate & VanillaOmoré 2-IN-1 Mango & VanillaOmoré 2-IN-1 Strawberry & VanillaOmoré 2-IN-1 Chocolate & CaramelOmoré Tutti FruttiOmoré Tropical BlastOmoré Kulfa.
Omoré ChocolateOmoré MangoOmoré StrawberryOmoré VanillaOmoré PistaOmoré Badam ZafranPromotion Strategy:Broadcast MediaAds on televisionRadio adsInternet (Social Networks, like: Facebook)Print MediaVehicle AdvertisingOutdoor BillboardsPoint of Sale DisplaysWhen Omoré ice-cream was initially launched, they adopted a unique way of advertising. Flyers were thrown in different housing communities by air.Push Strategy: Trying to replace Walls’ deepfreezes with Omoré’s by offering incentives to retailers.Omoré sponsors cooking shows.Also runs cobranding promotion campaign with “Shell”.Public RelationOmoré Basant Event, LahoreConcertsSeaview Festival in Karachi at its launchGeographical Coverage:In the beginning the only market Omoré that severed was Lahore.After a year they targeted other cities as well like Karachi, Peshawar, Sahiwal, Multan and Rawalpindi.
They made a strategy to enter more cities of Sindh, Punjab, Khyber Pakhtoon Khawan, Baluchistan in future.They use push strategy for promoting their products.Promotion Goals:Persuade the customersRemind the customersAdvertising Strategy:They used vehicles for advertising, outdoor billboards (on occasions like Eid etc.
) In T.V advertisements they mostly use celebrities, endorsement, Musical, slice of life, mood or image, lifestyle of their target market, they also use point of display.Reach: Approx. 20% of the target are shown on the TV advertisement within the first year of its launch, now it is reduced to 15%.Frequently: During the first year of its launch it is exposed to the message at least 5-6 times; now this percentage reduces to 1-2 times only.Media: Omoré chooses magazines, TV channels which are most watched by the target market especially children at peak time when children are watching television after free from their activities.Theme: Advertisements theme is fun, joy and happiness.Market Positioning:Omoré ice-cream is one of the few brands in Pakistan to manufacture pure dairy ice-cream.
(Which is its competitive advantage)Positioned as “More for Less” (providing more benefits for less price)Constantly innovating and introducing new flavors to the table, especially ‘eastern’ (desi) flavors that have never been launched by branded segment in Pakistan before. Place (Marketing Channels/Distribution Strategy):Distribution Strategy:Channel: Directly sells to the end user either through shopkeeper and retailers or by using cycles and their own personal.Transport: Ice-creams are transported to retailers and shopkeepers through private transportation firms.
E.g.: Abu Dawood Logistics and also through a few trucks own by the company.
This is done in order to remove transportation and vehicle cost.Location: Offered at large/medium sized, small bakeries, grocery stores and pharmacies.Recommendations and Conclusion:Recommendation:Omoré should upgrade its marketing strategy in Karachi due to large population. Because if they’ll be successful in it, Omoré would not only be a market leader also they will gain huge profit.
Omoré should introduce different flavors according to the taste that the people recommend. For this they have to conduct a massive amount of survey across the cities. In the survey they can get two things. First, they know about the people preferences and they would also know about the popularity of their product among the people.Omoré should work on 3 main things.
Price strategy (according to the all social class)Marketing and advertising because the more the people become aware the more they will prefer or try that product.Strong distribution, because the availability of product is the most important thing. Conclusion:Engro group is the biggest producers in Pakistan. Engro’s brands is are top brands in Pakistan’s milk sector. Their products like OLPERSMILK, TARANG, OLPERS CREAM and OMORÉ ICE-CREAM purchased heavily across the country.
It has been made possible due to their marketing strategies, promotions, price, quantity and quality of the product. In order to become the leader in the market, Omoré has to introduce new products to the market which is in accordance with the consumer’s preferences, so the company will remain in the industry with increasing business and gain huge profits.