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MARKETING PROJECT TARANG

INSTRUCTOR: SIR EJAZ AHMED MIAN

COMPANY: ENGRO FOODS LIMITED


2015

Composed by: 1. Farhan Daud


2. Karan Kumar
3. Syed Talha Kadri

MARKETING PROJECT TARANG

MARKETING PROJECT TARANG | 4/15/2015

Table of Contents

1. ENGRO FOODS LIMITED ............................................................................................. 2

INTRODUCTION .................................................................................................... 2

MISSION STATEMENT ............................................................................................. 2

VISION STATEMENT ............................................................................................... 2


2. INDUSTRY ANALYSIS .................................................................................................. 3
3. BRAND ANALYSIS....................................................................................................... 4

MARKETING MIX (4PS) ............................................................................................ 4


I. PRODUCT: ........................................................................................................ 4
II. PRICE: ............................................................................................................... 5
III. PROMOTION: .................................................................................................... 6
IV.
PLACEMENT: .................................................................................................. 7

TARGET MARKET ANALYSIS .................................................................................... 9


I. DEMOGRAPHIC SEGMENTATION .......................................................................... 9
II. PSYCHOGRAPHIC SEGMENTATION ....................................................................... 9
III. BEHAVIORAL SEGMENTATION ............................................................................. 9

4CS MODEL .......................................................................................................... 10


I. COST ............................................................................................................... 10
II. CONVENIENCE.................................................................................................. 10
III. COMMUNICATION ............................................................................................ 10
IV.
CONSUMER SOLUTION ................................................................................... 10
4. SITUATION ANALYSIS ................................................................................................ 11

PORTER 5 FORCE MODEL ...................................................................................... 11


I. THREAT OF NEW ENTRANTS: LOW ............................................................................ 11
II. THREAT OF SUBSTITUTE GOODS: HIGH ....................................................................... 11
III. BARGAINING POWER OF SUPPLIERS: HIGH ................................................................... 12
IV.
BARGAINING POWER OF CUSTOMER: HIGH............................................................... 12
V. COMPETITIVE RIVALRY WITHIN THE INDUSTRY: LOW ...................................................... 13

SWOT ANALYSIS ................................................................................................... 13


I. STRENGTHS ...................................................................................................... 13
II. WEAKNESSES .................................................................................................... 14
III. OPPORTUNITIES ............................................................................................... 14
IV.
THREATS ...................................................................................................... 15
5. 4PS ANALYSIS & RECOMMENDATION ........................................................................... 15
I. PRODUCT ........................................................................................................ 15
II. PRICE ............................................................................................................... 16
III. PROMOTION .................................................................................................... 16
IV.
PLACE........................................................................................................... 17
6. CONCLUSION .......................................................................................................... 17

1. ENGRO FOODS LIMITED


INTRODUCTION
Engro Foods Limited was framed as a completely possessed auxiliary of Engro
Corporation in 2005 as consequence of diversification. Utilizing dairy as a going
stone to go into the sustenance business, Engro has dispatched multiple items,
turning into a real player in the nourishment of business sector in Pakistan with
Rs.43 billion incomes in 2014 and its shares and stocks are exchanged vigorously
in money markets. At the very moment company offers six major brands Olpers,
Tarang, Omung, Omore, Owsum, and Olfrute.

MISSION STATEMENT

MARKETING PROJECT TARANG | 4/15/2015

Build branded food business to improve quality of life by offering tasty,


affordable and high nutritional products to our consumers while maximizing
stakeholders value.

VISION STATEMENT
Aim at transforming the company into first national food industry giant, then
into regional force and finally into a global player.

2. INDUSTRY ANALYSIS
The industry volume of Tea whiteners is 10,000 tons every annum while 29% of
the aggregate milk powder industry is milk whiteners
Tetra Pak gauges that drinking milk with tea represents 32% of aggregate milk of
total milk consumption in Pakistan, making this an extremely important focus
area for milk processing companies. Tea whiteners are less costly to produce
compared to packaged milk as it contains vegetable fats instead of animal fat
because of its affordability.

MARKETING PROJECT TARANG | 4/15/2015

Contending brands of tea whiteners accessible in the Pakistani business are:


Tarang by Engro, Nestle EveryDay, Tea Max by Haleeb, Chaika by Shakargang, Chai
Mix by Nurpur and Millin by Premier Dairy Industry. Also tough competition by
dairies who sell fresh milk.

3. BRAND ANALYSIS
It involves judging the product on various fronts such as Marketing Mix (4Ps),
Segmentation and Customer Point of View (4Cs).

MARKETING MIX (4Ps)

MARKETING PROJECT TARANG | 4/15/2015

Tarang has carefully employed the following marketing mix to maximize its
returns:

I.

PRODUCT:
The brand name was chosen as a strategic element to connect effectively with
the target market which can relate with Urdu. The Urdu word ( Tarang) is
a depiction of happiness, joy, festivity and a cheerful state of mind.
Tarang falls in the category of tea whiteners that contains:
6.5% vegetable fat
4.5% milk-solids non-fat
1.75% sugar

Minor ingredients such as emulsifiers and stabilizers.


The beverage is produced and Ultra Heat Treated (UHT) at the highly
sophisticated milk processing plants of Engro at Sukkur and Sahiwal in order to
preserve the taste and nutritional qualities.
Available in a diversified SKU portfolio: 125ml, 250ml, 500ml and 1 liter to
meet the needs of all tiers of its target audience.
Each pack is aseptically packed in Tetra Brik Slim and has a shelf life of 71 days.
Packaging is designed so as to complement Tarangs positioning bright colors
such as yellow, orange and red that depicts joy and festivity. As an FMCG, this
proves helpful for Tarang to be spotted easily.

II.

PRICE:
Unit price of smallest pack offering (125ml) that makes 2 cups of tea is
maintained at Rs. 10.
Profit margin is kept very low to satisfy the price sensitive target market, which
shows that the target market of Tarang is lower middle class.

MARKETING PROJECT TARANG | 4/15/2015

Discounts and credit terms are offered to important partners such as key
accounts (Metro, Cosmo etc.) and major distributors. Retailer are not given
any discount even if they take it in bulk quantity.

The pricing strategy employed is value based pricing which is about charging
just the right combination of quality and good service at a fair price.

III.

PROMOTION:
Engro Foods is currently utilizing the following mediums to generate positive
customer response for Tarang:

Television commercials
Radio ads
Print ads (Newspapers, magazines, posters, etc.)
Out of home advertising (billboards, conventional hoardings, banners, shop
signs, mobile advertising i.e. painted trucks and rickshaws)
Dancing Lollywood stars in a festive Desi environment capture the essence of
Tarangs cheerful image, in tune with the bright colors of the packaging.
Aggressive promotional strategies employed by Tarang include sponsoring of:
TV shows (Hero Bannay ki Tarang), modernized remakes of super-hit Pakistani
films (Houseful) and couple award ticket to attend IIFA Macau. Billboards and
banners are used as a regular part of promotional campaigning.

MARKETING PROJECT TARANG | 4/15/2015

FURTHER MORE

TVCs
Time Slots- 7 am to
10 am and 5 pm to
7 pm
Aaj, KTN, Play, 8XM,
Hum TV, Oxygene,
Sindh News and
others

Radio
Commercials
Time Slots- 7 am to 9
am, 3 to 6 pm, 1pm
to 2 am

BillBoards
Karachi, Lahore,
Islamabad,
Rawalpindi,
Faisalabad,
Hyderabad
Peshawar & other
cities and towns

Brand Activation
- Concerts

SAMPLE OF OTHER PROMOTIONAL PLANS

MARKETING PROJECT TARANG | 4/15/2015

IV.

PLACEMENT:
Engro Foods rely on its distributors for the supply of its products to end
consumers. Tarang reaches the shelves of stores through value delivery
network comprising of distributors, retailers and consumers. For placement of
Tarang, Engro Foods prefer Numeric Distribution over Weighted Distribution.
The distribution strategy is designed in a way to take two things into account:
Maximum Retail Presence & Minimum OOS (Out of Stocks).
Tarang comes under the category of FMCGs, hence its timely supply is very
important.

EFL has divided Pakistan into five regions for this purpose:

Lahore
Karachi
Islamabad
Peshawar
Multan

Engro Foods Distribution Channels involve:


7 Distributors (General Trade)
ICA (International Chain Account) includes the Cash and Carry Giant Metro
(10% of total Sales) etc.
Food Services

MARKETING PROJECT TARANG | 4/15/2015

EFL has outsourced the logistics function. It is carried out by third party that
specializes in supply chain management and provides integrated warehousing
and transportation services throughout Pakistan.

TARGET MARKET ANALYSIS


Tarang has precisely picked its target market in the wake of directing broad
market surveying and applying the accompanying bases for division to boost
the arrival on its endeavors.

I.

DEMOGRAPHIC SEGMENTATION
AGE: 23 years
GENDER: Mostly males
INCOME: lower middle class to lower class(almost 95% of users with
approx. Rs. 25000 monthly income according to our primary research)
EMPLOYEMENT: Blue collar employees
LOCATION: Suburbs

II.

PSYCHOGRAPHIC SEGMENTATION
Tarang is focused on towards the work class of Pakistan that buckles down
amid the day and needs to keep their nicotine levels high. They consume a lot
of tea and as they don't earn much, Tarang offers them a low priced in
comparison to different options for milk. This is the class that consumes tea
mostly form the local dhabas and visits the nearby local film houses. Tarang
positions itself for this martket and that why it is the perfect tea whitener.

MARKETING PROJECT TARANG | 4/15/2015

III.

BEHAVIORAL SEGMENTATION
Tea is matter of daily utilization for Tarang's target market - they are
substantial clients. As per statistical surveying we did for the brand, there were
an expected 74% of such overwhelming clients who drink 2 or more cups of
tea every day out of all tea consumers in karachi, who abide in the edges of
the metropolitan urban communities, and towns. They look to keep their
nicotine levels high to help them get past the day so they are searching for a
whitener that does not make the tea mellow. The target market is not an
exceptionally loyal and can't be depended upon for proceeded with
continuous utilization; they will pursue whatever is shoddy.

4Cs MODEL

I.

COST
Tarang when compared to other is cheap so the one-time cost incurred is quite
low. Also it is the perishable item so it carries the concept of use and throw.
This also means no repeat costs. Earlier described that it is one of the cheapest
liquid tea whiteners available so thats the opportunity cost to the consumer is
minimal. While its availability at all almost general store saves both consumer
efforts and money as they dont have to look for it other nearby stores.

II.

CONVENIENCE
Tarang prime objective is targeting low income earners which it did and is still
doing by making it available at the general (convenient) stores which they are
likely to visit. Other this prices are also set due to the lower disposable income
of the market. Most of its consumers are found in KPK Province, so the supply
of product is very high. Shortages are unlikely to take place. To aware
consumer regarding the availability, prices of the product huge sums are spent
on the flashy advertisements.

MARKETING PROJECT TARANG | 4/15/2015

III.

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COMMUNICATION
Consumers always wants low priced, highly nutritious and easily available
products. This demand is served by tarang as it carries all that a consumer
wants. Tarang is healthy as its ingredients are vegetable fat, milk-solids nonfats and low fats. All of the features portrayed in the advertisements which are
done by its brand ambassador who are highly known and have good
convincing power.

IV.

CONSUMER SOLUTION
One of the steps that Tarang took was setting a forum TALUQ helpline, for
consumers to express their queries, feedbacks and complaints. Also mailing
addresses and website sere that purpose too. Tarang reaches out to its
customers by way of surveys, interviews with distributers and questionnaires.
While frequent advertisement are carried with the special focus on the target
market.

4. SITUATION ANALYSIS
Situation analysis refers to a collection of methods that managers use
to analyze an organization's internal and external environment to understand the
organization's capabilities, customers, and business environment. It includes:

PORTER 5 FORCE MODEL


I.

Threat of New Entrants: LOW

MARKETING PROJECT TARANG | 4/15/2015

The food processing industry is very large and aggressive: it is not uncommon
for firms inside the industry to do well.
Subsequently, numerous companies enter into market every year trying to
pick up an extent of the profitable market. Fortunately for ENGRO, the
organization has been around in Pakistan for quite a long time and brags a long
history of quality items and customer fulfillment, which has permitted the
organization to acquire a significant share of the market.
It has indicated quickened investment activity in late years through the
dispatch of quality items which shows a long haul commitment to PAKISTAN
and construction of high-tech processing plant to take care of the increasing
consumer demand.
Therefore, new entrants into the industry must endeavor to grab a segment of
Engros piece of the pie to survive. Basically, Engro is continually a target, thus
the risk of new participants is generally low.

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II.

Threat of Substitute Goods: HIGH


Because of the nature of the industry, Engro is best with the risk of substitute
goods. From beverages to milk-based products, there are arrays of similar
products that contend specifically with Engro.
Particularly in Pakistan, there are numerous local rivals in food and beverage
industry that gives comparable sort of item like Engro's. It is imperative for
Engro to consistently discover better approaches to enhance its items in light
of the fact that competition is so furious/fierce.

Lately, Engro has concentrated on wellbeing and health parts of its items to
keep up its aggressive edge and client loyalty in the market.

III. Bargaining Power of Suppliers: HI GH


Bargaining power of suppliers is very important element to be considered in
any industry as they are the main strength of the company.
Engro is known for solid relations with the suppliers around the Pakistan
because of its colossal purchasing power and also because of the fact that is
such dairy and agriculture products quality is essential.
Engro has constantly concentrated over solid and tough business relations to
make the continuous quality stronger. Also, Engro likewise displays supportive
direction to its suppliers on the most proficient method to work all the more
capably to diminishing repetitive costs. And thus it cares of its suppliers which
in return pays them off in the form of quality products.

MARKETING PROJECT TARANG | 4/15/2015

IV.

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Bargaining Power of Customer: HIGH


The haggling force of clients has dependably been a vital consider terms of
organization's execution so this should be given sensible worthwhile getting to
the company's position.
Clients convey tremendous amount of bargaining power concerning their
utilization of different Engro Products.
Despite the fact that a considerable number of substitute items and
contenders, Engro clients have exceptionally influential choices yet the quality
that has been kept up by Engro has made it extremely successful among the
clients.
It is very important to comprehend the force of the clients furthermore their
needs so they can be better fulfilled.
This is the thing that Engro dependably thinks about and that is reflected in
Engro's wellbeing and health program that have being utilized while
production of new items as society has in advancement of getting to be more
wellbeing cognizant.

V.

Competitive Rivalry within the Industry: LOW


Rivalry if sound would bring tremendous achievement however in the event
that negative would wreck the entire industry so it ought to be basically
dissected for better eventual fate of the organization.
Engro has a solid position in the food processing industry however couple of
significant opponents do exist in the business like Nestle and Fresh Milk Dairies
Aforementioned organizations are battling consistently to get on to one
another and stay away from any kind of rivalry however it is still there.
If we talk about marketing and advertising, these companies aside from fresh
milk dairy shops have spent the greater part of their expenditure with the end
goal of effective marketing and advertising and in rivalry have constantly out
performed one another.
Rivalry is savage in food processing industry, and this is an in addition to point
for shoppers. Given that these companies bear on in contending with one
another, customers will diligently appreciate enhancing item qualities.

SWOT ANALYSIS

MARKETING PROJECT TARANG | 4/15/2015

I.

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STRENGTHS

Strong recognition of the parent brand: Engro Food Limited


Direct contact with farmers
Excellent marketing research tools
Can easily afford Research and Development costs for new features
Strong Quality control, Best Tetra pack
Only Engro Foods Limited has the third-generation UHT milk plant in the
country; it uses Bactofuge technology to virtually eliminate bacteria and
ensure premium quality and hygiene.
Tie-ups, sponsorships with Lollywood stars
One of the most diversified product portfolio
Available at affordable price

A shelf life of 71 days


Proactive management that works well
Vast distribution network across the country

II.

WEAKNESSES
Weak and inefficient supply chain network
Weak presence in urban cities of Islamabad, Lahore, Karachi, Peshawar and

MARKETING PROJECT TARANG | 4/15/2015

III.

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Quetta
Consumer income sensitive
Engro Foods has only one dairy farm located in Sukkur; insufficient to meet
the requirements
Relatively less experience in FMCGs as compared to strong competitors
that have been in the industry for decades
No viable plant to produce powdered milk to capture the gap in the
powdered milk sector
The packaging, with its yellow color attracts bees during the summer that
leaves a bad impression on the packaging, making it look dirty. This puts off
the potential new customers
The formula of Tarang has an internal flaw where by it cannot sustain itself
at temperatures higher than 45C and expires. As a result, the company has
to take a lot of expiry return during the summer season

OPPORTUNITIES
Increase penetration into urban cities
Health consciousness of people
Growing dissatisfaction with loose milk and increasing awareness about

health and hygiene issues have led to increased processed milk


consumption
High population growth
Government has a flexible policy for food industry
Introduction of new flavors
Better use of Social Media for advertising and promotion

Exploit the huge youth niche in the market by portraying a cooler image
of itself
Works closely with rural communities to promote integrated farming and
livestock development as an effort for poverty alleviation and corporate
social responsibility
Rising price of livestock feed causes loose milk to become more expensive
and may lead to increased demand for Tarang

IV.

THREATS
Health consciousness amongst people can take a toll as Trans fats present
in tea whiteners are health damaging
Preference for fresh milk
Strong competitors
Presence of an inflationary economy Due to high return prospects in the
tea whitener industry, new players might enter into the market.
Presence of an inflationary economy
Low purchasing power of people
Customers too much price sensitive and readily switch in case of higher
prices.

5. 4Ps ANALYSIS & RECOMMENDATION


MARKETING PROJECT TARANG | 4/15/2015

I.

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PRODUCT
In comparing Tarang with its competitors like Everyday, Teamax and Haleeb
we can conclude that Tarangs brand name and packaging has justified its
meaning of festivity and joy. The main product concept of Tarang has been to
provide taste along with quality and affordability and it has so far been
successful in doing so.
One thing which has to be noted is that Tarang has an edge over its
competitors in price and taste but it just lacks behind a little when it comes to
quality especially in comparison with fresh milk, which usually gives Tarang a
tough time in the market.
Moreover, if we consider the Stock keeping Units (SKUs) so tarang starts off
with 125 ml whereas its major competitors like Everyday starts at 200 ml but

recently Everyday has introduced its sachets which are priced as low as Rs.8
and to Rs.18. This taken was specially taken by Everyday in order to give
Tarang a tough time in the market and to attract its lower and middle income
groups.

II.

PRICE
Since, Tarang targets the lower and middle income groups so it operates in a
price sensitive market. According to statistics collected in 2014 it has been
seen that 95% of Tarang users have monthly income of less than Rs.25000.
Under such market conditions it is quite clear that Tarang has maintained price
levels for its SKUs with the lowest being priced at Rs.10 (125ml) and we can
deduce that the strategy of value based pricing has indeed worked for tarang
in keeping its target market intact despite competition from new and existing
competitors.
When it comes to pricing Tarang faces major competition from Fresh milk but
it has successfully managed to tackle the competition. This is because; there is
very little price difference between a cup of tea made from Tarang and that
made from fresh milk. A consumer believes that he/she gets a similar product
packed safely but priced a little high under the name of Engro Foods when
compared with just open fresh milk.

MARKETING PROJECT TARANG | 4/15/2015

III.

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PROMOTION
As per our surveys we have found that the promotional strategy of this
product is up to the mark and almost every person we ask knew about this
product. 14 out of 15 people came to know about this product through its T.V
advertisements.
Along with T.V advertisements, Tarang sponsors different TV shows like Hero
Bannay ki Tarang and Tarang houseful movies. While Tarang depicts festivity
and joy in its colourful and extravagant TVCs, it is successful to draw the
attention of its target audience. But due to new entrants in the industry and
constant competition from competitiors like Everyday, Tarang needs to alter
its promotional strategy especially the TVCs.

Tarang needs to introduce more sophisticated advertisements to target


audience in the urban section of Pakistan because it has already captured the
market in the rural area. Bursting with colors and full of Lollywood stars
dancing on catchy tunes- that is how Tarang aims to attract viewers attention
to its TVCs, yet majority of our respondents (65%) find them as being unable to
serve the purpose, filmy and exaggerated, with 33% of those who discontinued
its use identifying advertising to be in need for improvement. It can thence be
inferred that even though Tarangs ads have been successful in creating brand
recognition, not significant sales have been generated by them.

IV.

PLACE

MARKETING PROJECT TARANG | 4/15/2015

Tarang relies on its distributors and retailers for its delivery to its potential
consumer. From our survey we came to know that Tarang is heavily demanded
in some areas and often the distribution process is slow which makes some of
its SKUs unavailable when demanded.
From this we can deduce that Tarang can be at a possible disadvantage in
comparison to its competitors when it comes to prompt availability. Being a
FMCG it is very important for Tarang to keep a strong check over its
distribution process which is outsourced and done by a third party.
Though the distribution network of Tarang is strong but many retailers
complained that both 125ml and 1litre pack are short in supply and sometime
due to this they dont even turn up for months.

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6. CONCLUSION
Tarang, as a fluid tea whitener, confronts extreme direct and indirect
competition. It is, however doing admirably in the growing tea whitener
industry of Pakistan. Its targeting and positioning are the aftereffect of
painstaking market research and corporate technique, which is to a great
extent successful.
Large portions of the outside strengths impacting the tea whitener industry
have suggestions for Tarang, in the form of both threats and opportunities.

The brand likewise has numerous strengths and shortcomings regarding


recipe, bundling and conveyance which are specific to it.
The promotional campaigns are one of the principle calculates that set it
unfathomably separated from other tea whiteners. Its broad advertising to a
great extent encapsulates the Lollywood culture of festivity and fantasy, which
is in immediate stand out from the family-based subjects of other tea whitener
brands.
From our product investigation we infer that Tarang, while a lucrative Strategic
Business Unit for Engro Foods Ltd, confronts various inside shortcomings and
outer dangers to its piece of the overall industry, client base and ensuing
incomes.

MARKETING PROJECT TARANG | 4/15/2015

Tarang still has a long way to go. It is as of now experiencing a troublesome


stage where the product has come to its maturity and a ton has been put
resources into it yet the profits regarding benefits don't speak to its revise
potential.

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