Market analysis of Engro Corporation in Pakistan

Market analysis of Engro Corporation in PakistanAround 45 historic period back from today, Mari Gas field was discovered by Esso Mobil joint venture that led to the basis of Esso Pakistan that is at a time popularly known as Engro Corporation. Today it is one of the largest companies operating in Pakistan with diversified operations ranging from fertilizers to polymer and has also established itself in the field of dairy produces with Engro Foods. As the website says, Engro stands for energy for growth. From inception, ours is a legacy of continuous growth, sensitive challenges and fulfilled promises. From fertilizers to dairy products, business solutions to PVC resin, power generation to commodity trade, at Engro our ambition is to make the premier Pakistani enterprise with a global reach.ENGRO FOODSAfter establishing its firm footing in the chemicals and fertilizers sector, Engro fixed to try its fate in the provenders and came up with a spin off in the form of Engro Foods. Engro Foods expressage was officially hurled as a fully owned subsidiary of Engro in 2004. Using dairy as a stepping stone to enter into 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.Top quality brands like Olpers, Olwell, Tarang, Omore and Owsum confuse 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 draw processing and milk accumulation infrastructure. (Engros website)VISIONEngro Foods vision is Elevating Consumer Delight Worldwide and the Company aims to generate a propertyificant portion of its tax from foreign operations.SUCCESS OF OLPERSOlpers has had an overwhelming success ever since it entered the market. It has now become one of the adopting brands in the dairy industry. When Engro foods back in 2006 decided to launch Olpers, experts w ere of the opinion that the brand would eventually fail considering the event that there were established brands like Haleeb and Nestle Milk Pak. However, by the end of 2006, Olpers annual sales were of Rs. 1 billion and in 2008 the brand had 22% of the market share of worlds fourth largest milk producing country. Following factors have significantly contributed to itTag line Subha Bakher zindagiRamzan campaingThe World of Olpers, for example, involves reaching out to the different locations in various cities and having the housewives accede in learning and showcasing milk-based recipes.Morning showsThe Olpers Consumer Relationship Party, an other(a) ongoing BTL based program, which intends to create and maintain the true amongst the brands users.Olpers, however, stepped into the foray by launching a massive campaign that started off with an introductory slice-of-life television commercialised featuring some of the biggest stars in Pakistan.Total Quality focal point (TQM)A conc ept that focuses on managing the total placement to deliver quality to customers. Four significant elements of TQM are employee involvement, focus on the customer, benchmarking and continuous improvement. (MANAGEMENT, DANNY SAMSON RICHARD L DAFT).Employee InvolvementEmployee involvement maybe referred to as a participative strategy to engage the employees of the organization, designed to encourage employee commitment to organizational success. Employee involvement emphasizes fashioning the employee a s outputholder in business performance by dint of rewards systems such as gain sharing and through with(predicate) business education.Focus on CustomersAny business largely depends on its customers in order to flourish therefore, customer satisfaction is a key aspect that the organizations need to take proper care of. Your company will need to outstandingly serve the customer. It may be achieved through the followingQuickly responding to customer queries.Providing information as ne ededCreating custom surveys to capture your customer ineluctablyBenchmarkingBenchmarking refers to the process through which organizations evaluate various aspects of their processes in relation to the best practices that are present at heart their own industry. They then plan to adopt these best practices in order to enhance performance. Benchmarking is a staple fiber tool for implementation of Total Quality Management. TQM focuses on how to improve the work processes in order to lodge better products. And with the help of benchmarking one can cake a work process or social function and then to set a standard and improve the processes to that standard. This would improve the effectiveness and efficiency and thus TQMs refinement will be achievedContinuous ImprovementContinuous improvement is one of the four stages that are tough in TQM. It deals with the organization employing various R D techniques in order to make improvements that can lead them to be competitive in their industry. As it is said that competitiveness may only be achieved through innovation and that can only be attained through continuous R D.As almost of Engros food products are milk based, therefore the Milk Procurement Department of theirs plays a pivotal enjoyment in ensuring that quality is delivered to the customers. Collection of milk from rural areas is one of the key features of the milk industry and since Olpers recognize its importance therefore, the department is responsible for regular collection of milk and to ensure the freshness of it. Moving on, in its overwhelming success, the Quality Assurance department also has played its part. There are qualified food technologists that are responsible to make sure that the end product reaches the customer with the quality that is promised and that Engro aims to deliver, thus pore on its customers.Like any other company it was not an easy task for Engro to step in and for this it had to carry out a market research. First thin g that the management noticed was that people treasured milk for all purpose and later that became Engros top priority. Moving on, Engro wanted to further expand its product varities and then came up with Owsum milk, Olwell, Tarang etc. (continuous improvement). However, to them customer feedback was particularly of great importance and hence after Olperss launch in the market, they conducted market research to obtain customer feedback. Customer feedback came as a positive sign and then Engro decided to make further investment by setting up a gear up in Sahiwal. (focus on customers) Not only was it helpful for the company to determine its own standing in the market but at the same time it proved beneficial to have a measure of the competitors. The customer survey was particularly important to estimate the number of loyal customers of competing brands and also in making decisions and drawing strategies for times to come.SWOT ANALYSISSTRENGTHSEngro as parent company.Good relations w ith farmersCustomer Feedback searchThird Generation Plant- only one in Pakistan who has it, removes bacteria content effectively.WEAKNESSESCollection of loose milkMilk collection and distribution costsOPPORTUNITIESPeople switching from loose milk to Tetra pack modify economic conditions of the country.Pakistan one of the largest milk producing countries in the worldTHREATSFierce rivalry and competitionDifferent pricesPrinciples of ManagementSurveyQ1. Name ________________________________Q2. Gender a) Male b) FemaleQ3. Age a) 10-20yrsb) 20-30yrsc) 30-40yrsd) 40-50yrse) 50 aboveQ4. Profession a) educateeb) Housewifec) WorkingQ5. Brand that you prefer is a) Milk Pakb) Haleebc) Olpersd) Pakolae) OtherQ6. Reasons for your choice____________________________________________________________________________________________________________________________Q7. Did you prefer any other brand before switching to the current one?Yes b) NoQ8. If yes, then which brand did you use previous? _______ _____________Q9. Reason(s) for switching ______________________________________________________________________________________Q10. Any recommendations that you would want to make (only in case of Olpers)______________________________________________________________________________________________________________________________________________________________________________________________________________.