BM Olper's Bread

8/13/2019 BM Olper's Bread

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Brand Launch (extension)Maham Shariq (8610)

Faizan Ali (8723)

Rafay Usman (9365)

Tanvir Aslam (7547)Ahsan Ali Shaikh (8855)


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Executive Summary

Olpersis a highly established brand in the milkindustry and has a very rich heritage and equity

The main aim of this launch plan is to dominatethe bread industry because the brands which arealready operating in the industry are neithergrowing nor providing any benefits to theconsumers

All of the brands in this industry are providingalmost similar kind of products to the consumers


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This launch plan has been made after extensiveresearch, competitor analysis and consumerconnect processes to browse the behavior ofconsumers and competitors

The vision of the brand is very clear from the start

and that is to dominate the bread industry andsustain the brand through continuous innovationand quality offers

A full-fledged trade marketing plan has beenmade which includes the major decisionsregarding the distribution and availability of theproduct


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A complete 360-degree communication plan hasbeen made to create the awareness andcommunicate the positioning of the brand. Theadvertising would be very intense in order togrow aggressively

The main focus is to work aggressively like theteam did for OlpersMilk and Omore

All the aspects of the brand launch have been

covered so that the brand become successfulnot only in the short-term but also sustain itsgrowth in the long-run


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Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Using dairy as astepping stone to enter into the food business, the Company has established state-of-the-art processingunits in Sukkur and Sahiwal, along with an ice cream production facility in Sahiwal.

Top quality brands like Olpers, Olwell, Tarang, Omore and Owsum have been successfully launchedunder the helm of Companys dairy products. To support these brands and their highest standards ofquality, Engro Foods has invested heavily in milk processing and milk collection infrastructure.

After the success of our dairy products, to which our customers testify, Engro Foods now plans toventure beyond the dairy sector. 2011 will also see the beginning of sales from its own rice processingplant.

With an acquisition of Al Safaa fast growing and established Halal meat brandEngro Foods is nowventuring into North American market starting from Halal Foods category. The new organization, EngroFoods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to aggressively grow the business in

this market.

With the vision of Elevating Consumer Delight Worldwide, Companys signifcant focus will be towardsthe global operations in the years to come.


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Engro foods top brands are Olpers, Tarang,

Olwell, Omore and Owsum and they all

belong to its diary product line.

Other than these diary products, Engro has

not given much attention to other FMCG

products. With the launch of OlpersBread

Engro Foods will enter a new category with

an established brand name.


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Category Profile

Bread is one of those products which are bought and consumed on daily basis. It is

consumed in a such a quantity that it is a part of an average individuals daily diet.

Although the quality, taste and prices of bread products vary a lot on the basis of

availability and competition yet it is fairly affordable all over. The products included

in the bread category involves:

White Bread

Sandwich Slices

Milk Bread

Burger Buns

Bread Rolls

Garlic Bread

Fruit Bun


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White BreadIt is the simplest form of all bread products and among all

it is the one which is most consumed. It is mostly

consumed during the breakfast time along with egg,

butter or else. In Pakistan simple bread is mostly

consumed in the form of Packaged Slices of different

brands or even if a local bakery is producing it by itself

then it is also consumed at a good consumption rate as

the middle class people are more concerned about less

price of FMCG products and a local bakery comparatively

sells its own made FMCG products at a lower rate.

The most common size of bread which is mostly

consumed in Pakistani Sliced Bread market is

approximately of 400grams.


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Sandwich Slices

Sandwich slices are also made up of flour as the other bread products are

made up of but the main purpose that it serves is the sole use of it in

sandwiches, because Sandwich requires a different kind of bread design and

taste.

In Pakistan most of the population accounts for the rural areas where fast

food does not have any importance. People do care much about their regular

routine meals and going out with family in those rural areas is far away from

ones thoughts. Secondly due to agriculture and lack of industrialization there

is not any concept of light Supper meal during work. So this type of bread is

restricted to cities only. It is mostly consumed by the fast food restaurants.

Where as an average house hold uses white bread as its substitute.


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Milk Bread

This type of bread contains some amount of milk in

it and sometimes also some amount of butter. Milk

and butter are added in it to make the bread

healthier.

This type of bread is not consumed much as it has

the issue of getting dry and spoiled. Due to less rate

of consumption this bread is not even produced on

large scale as there is a threat of great loss if it is not

sold on time.

According to a research made a couple of years back

the retailers are paid only for the units of bread they

sale and rest are returned. And among those

returned having a loss of 30 to 35% is normal


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Burger Buns have a different structure with round

shape. They serve the purpose of making burgers.

Like sandwich slices, Burger Buns are also mostly

consumed by the restaurants in large quantities.

There is a clear cut difference in Burger Bun and

Sandwich Slices which is that a Burger Bun can not

be substituted by normal 400 grams bread where as

Sandwich can be made with it. Even then the sales of

Burger Buns is not as desired. The reason is again

less concentration over fast food in rural areas.

These Burger Buns sometimes are not sold for 2 to 3

weeks and the retailer has to bear the loss specially

in rural areas.

Burger Bun


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Fruit BunFruit buns are a typed of baked bread

roll, muffin or loaf made with fruit, fruit

peel, spices and sometimes nuts. The

fruit pieces are added into normal

bread in order to give it a sweet taste.They are mostly consumed along with

tea in Pakistani culture. Garlic Bread

Garlic bread is a crisp form of bread. It is

spread with Garlic butter or cheese. It is

French or Italian Bread recipe.

In Pakistan Garlic bread is mostly used as a

diet or as a starter before meals.


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Dawn Bread

Dawn bread is one of the major players in Pakistani bread market. The positive

aspect of it is its distribution which is fairly good throughout the country.

It has a market share of almost 35 to 40%

Its other products include:

Fortified Bread

Milky Bread

Plain White Bread

Burger Buns

Fruity Buns

Hot Dog Buns


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Bake Parlor

Bake Parlor is a major player not only in the bread business but it has beensuccess in reaching good brand extensions. With product categories like Frozen

food, Snacks and others it has been playing a prominent role in the market. But in

bread market it has a market share of 17% in Karachi city only. In its bread

products following includes:

White BreadS

Milky Bread

Bran Bread

Fruit Bun

Tea Rusk

Sheer Mall

Burger BunHot Dog Bun

Sandwich Bread (Special)

Cake Rusk


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Wonder

It is also a major brand in the bread market but it has been

focusing more on its business only in Karachi city. Even then it

has a market share of 12%. Its bread products include:

Wonder White bread

Wonder Wheat Bread

Wonder Hamburger Bread

Wonder Buns


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Bunnys

Although Bunnys is older than even Dawn yet its name comes after Dawn probably because ofthe distribution factor. The Company continuously has been focusing its efforts to better

understand the changing eating habits and retailers needs. They also try to anticipate consumer

needs in order to provide convenience, nutrition and wellness through its product and services

offerings. Bunnys Bakery products include:

Baqar Khani

Burger BunCake Rusk

Deluxe Cake

Fruit Bun

Fruit Cake

Milk Bread

Naan

Plain Cake

Queen Cake

Rusk

Sandwich Bread

White Bread


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Competitor Analysis

Direct competition:

Olpers bread will be in direct competition with the following branded

and non branded breads

Dawn bread: the market leader

Wonder bread

Bake parlor

Breadies

Sunshine

All bakery breads

Indirect competition:

All breakfast itemsbranded frozen prathas, home made parathas, rusks

Snacks for kidsusually kids eat snacks or bread in the evening with milk


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Product & price

Dawn Bread Wonder bread Sunshine bread Bake parlor

Bran bread

1. RS 45

white breads White bread White bread

1. 20

2. 323. 67

Fortified bread

1. 20

2. 32

3. 67

wheat breads Grains bread

( walnut etc)

Brown bread

1. RS 45

Plain white bread

1. 20

2. 32

3. 67

Flavored bread

( choc etc)

Milky bread


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Place & promotions

Dawn bread Dawn bread has a very powerful distribution chanel and they cover the whole

Pakistan ranging from peshawar to karachi

The supplies are done 2 times on daily basis to retailers on demand basis

As far as the promotions are concerned Dawn bread depends mostly on BTLactivities. ATL activities are also done but on a very narrow scale Like an ad on

25year celebration or a billboard communicating the positioning

Bake parlor Bake parlor distribution is not as strong as dawn bread, they dont cover every

retailer instead their product mostly available on super stores or famous shops of

every particular area or region.

Bake parlor do run some tv ads which shows their interest in ATL


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Positioning

Dawn bread

Eat healthy, live healthy

Dawn bread focuses on building a bond between the brand and the

consumers health, providing the freshness for the life.

Sunshine bread

Enriched with softness, no trans fatSunshine has positioned itself as a bread which provides the

consumers the satisfaction of a completely healthier diet


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Positioning

Wonder bread

Bring back your memories and helps youmake new ones

Bake parlor

Tasty and healthy bread which provides theenergy to perform the routine duties


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Strengths Weakness

high quality bread

stays fresh for a longer period of time

olpers is already an established brand

name

Engro has never made anything in

bakery products

Opportunities Threats

there is not enough communication

been done by the leading brands;

hence providing the opportunity to

create excitement around the brand

and make the positioning of the brand

competitors performances and their

solid market shares i.e dawn, bake

parlor, wonder


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Engro Foods Vision:

Aims at transforming the company within the next five years

into first, a national food industry giant, then into a regional

force and finally into a global player.

Olpers Bread Brand Vision:

To penetrate the bread category, capture the market, sustain a

dominant share while pleasing customers with great taste, continuous

innovation, quality and a healthy solution for those who are looking tofit more nutrition into their overall diet.


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Key Market Trends:

TRENDS

Bread is a central component of everyday nutrition inPakistan, to the extent that it is usually used as a substitutefor a fork or spoon while eating. However, instead ofbaking chapattis (traditional Pakistani bread made of flourand water) consumers now tend to buy readymade bread.Previously, women tended to make bread at home, but, asa result of the increased presence of females in theworkplace, many no longer have the time required to dothis and instead serve store-bought bread with meals.


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COMPETITIVE LANDSCAPE

Artisanal products accounted for a 76% share ofbaked goods retail value sales in Pakistan in 2009. Theshare of sales accounted for by artisanal productssaw a two percentage point decline over the review

period. Outside artisanal products, Campden &Chorleywood Food Research Association Groupaccounted for a leading 6% share of retail value sales,followed by Vita Pakistan Plants Ltd with a 5% salesshare. Campden & Chorleywood saw the largest gainin retail value sales share of one percentage point in2009.


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PROSPECTSBoth retail volume and value sales are expected to see CAGRs of 7% over the

forecast period. Sales growth will be driven by the expansion of the countrys

middle class, which will increasingly migrate away from homemade to store-bought baked goods, due to the convenience which they offer.

Trends

With the growing industry and overall economy each year, larger amounts of

people are employed in professional careers. Increasing urbanisation dictatesa faster pace of life, thus leaving less time for meal preparation at home,

particularly when young families live separately from their parents. This

impacts their increasing preference to dine outside which saves a lot of time

as well as offering families the chance to relax and eat together.

Competitive Landscape

The foodservice channel remains underdeveloped in Pakistan.


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ProspectsFoodservice will see ongoing growth as the economic slowdown will notchange consumers convenience and time-saving trends significantly.

Generally, the target customers for foodservice are comprised of the highestearners so their quality of life is far beyond the expenses of dining daily atfoodservice outlets.

TrendsDespite the changing lifestyles of young consumers, they continued to livewith their families and therefore tended to be looked after with regards tonutrition. However, with the economy boost and increasing urbanisation, theysometimes need to move to cities for educational or work purposes, thusmaking them more responsible for their own meals: impulse snacking istherefore driven by this trend. Traditionally, Pakistanis are used to seeing a

great amount of snacks being sold on streets and are used to snacking ontheir way to work. However, this has changed somewhat and consumers withhigher incomes prefer quality and hygienic food, thus packaged snacks arebecoming more popular.


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Consumer:

Those consumers who are conscious andconcerned about the nutrition they take-in.

Need: Most white breads are not preferred by

diet-conscious, health-concerned consumersbut the alternative bread types can be

tasteless and dry, Olpers Bread , a new bread

with the taste and soft texture of white bread

but with the fibre of 100% whole wheat bread

will meet the needs of these people.


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Positioning


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1. ROOT STRENGTH

Olpers Bread root strength will be a more nutritional,healthy & fresh bread.

2. Competitive Environment:

Olpers Bread will operate in the baked goods retail

environment, competing with artisanal products as well.

However Olpers Bread will have few major competitors:

Dawn Bread: Currently the market leader with a 55%

market share, due to Large Distribution Networkproviding Nation-wide coverage and effective on timedelivery and round the clock customer service.


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Bake Parlor: Will be the second big competitor that

Olpers bread will have to face. Bake Parlor roughly

has a 29% share of the market, the positioningrevolves around a healthy loaf of bread to perform

routine duties.

Wonder Bread:is a very small competitor with12% market share

VITA Bread: which competes at regional level withDAWN. The former is not

considered a threat by dawn bread because it only

concentrates on a specific niche of the market; and only

supplies bread to milk shops and local bakery stores.

Controls 4% of the market share


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3. Target Market:

Consumers who are conscious about their healthand want to add more nutritional value in their

diet.

4. Consumer Insight:

Consumers want a bread that is tasty, Nutritionaland fresh at the same time but does notcompromise on quality and is readily available intheir locality.

5. Benefits:

Olpers bread, a wholesome bread for awholesome familyproviding rich nutritions to liveand stay healthy.


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6. Values, Belief, Personality:

Values: We believe in consistently providing solutions for ourconsumers to lead healthy lives, from providing a nutritional packed

breakfast to a healthy snack whenever and wherever they want.

Personality:Olpers Bread is a wholesome bread that nurtures thewhole family to lead healthy lives, It appeals to mothers, diabetic

people, health conscious people, fitness concerned people and

children because of its better taste.

Olpers Breads personality is based on being a cool breakfastcomponent as most teenagers skip on breakfast and a personality

that will appeal to them and will use communication that will be able

to reach them and encourage including Olpers Bread in their

breakfast consideration.


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Olpers Bread while still being cool will also will be fun to

include kids and excite them to have an Olpers Breakfast- which

will please their mothers, the wholesome bread because the

brand will be most strongly communicated to mothers as theyare the majority decision maker in the buying process.

7. Reasons To Believe:

Olpers Bread is a caring brand which cares about its consumers health

and well being. We value health, celebrating life and enriching our

lives with all the goodness around us.

Some people want to live strong and live long, to still be able to

physically go on about performing their daily duties without assistance

in their old age, to see their grand children grow, to perform better intheir daily lives backed by pure natural power, to be fitter, leaner and

in control of their livesThese are the same people that value what

we value: A good solid life


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8. Discriminator:

The taste and soft texture of white bread butwith the fibre of 100% whole wheat bread

9. Essence:

Olpers Bread:

Enriching Life

Providing elements for Longevity of life


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Marketing Mix Product

Bread:

- White Bread ( with 100% fiber of whole wheat)- Farmers Grain- Sunflower and Linseed

Price

-White Bread : Rs 20Rs 32Rs 67

- Farmers Grain : Rs 45

-Sunflower and Linseed : Rs 47

Place:-A Class Stores

-B Class retail stores

-Kiryana Stores.

-CSD

-Makro, Hyper Star Imtiaz, Naheeds, Metro


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Packaging:

Food-grade plastic packaging for bread which is environmentally-friendly

Colored plastic bands will be used to display 'freshness each color willdepict the day it was manufactured, an added assurance of freshness long

with the expiry and manufactured date.

Day Color

Monday Red

Tuesday Blue

Wednesday Green

Thursday Purple

Friday Orange

Saturday Pink

Sunday Yellow


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Olpers Bread will be initially launched in Karachi during its introductory

phase, once market testing is achieved and we have gained some consumer

insight, it is to be distributed in major metropolises in Pakistan including

Lahore, Islamabad, Rawalpindi, Quetta, Multan, Hyderabad, and Peshawar.

Distributor margin will be fixed at 8% and Retail Margin will be fixed at 10%.

Product older then two days will be replaced, with fixed marketing return of

3% on expired or replaced product.

Retailer will receive 2% cash discount for prime location, plus 5% discount for

first six months of launch.

Retailers that are able to sell all products, and none are to be replaced,

retailer will receive 10% discount on next order.


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Retailer Bonus Slab

Bread Sales Per Week in Units

Discount Slab Min Units Max Units Discount on sale

Slab 1 50 99 1.00%

Slab 2 100 199 2.00%

Slab 3 200 - 4.00%


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Merchandising will includepromotional material such as stands,

posters, shelf strips, sign boards,racks. The goal will be to capture theconsumer at the store, and havetrader help in pushing product sales.

Retailers will receive small cashallowance on merchandising.

Point of Purchase will include all retailoutlets, all Milk outlets, and allbakerys across Karachi.


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PRIMARY AIM


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PRIMARY AIM

To create awareness and communicate the differentiating factor extensivelythrough intense advertising in order to grow aggressively and capture adecent market share

SECONDARY AIM

To increase sales and generate profits for the brand

BIG IDEAHealthy Happiness(To have a happy & healthy life)

PROPOSITION FOR THE ADS

o USP: Quality ingredients that are pure & natural, fluffy and soft bread

o RATIONAL APPEALS: Packaging, Red Color, Range of Products, Product Attributes

o EMOTIONAL APPEALS: Family values, love & respect, healthy life, in-depth associationof family members based on their choice of bread

ABOVE THE LINE ACTIVITIES (ATL)


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ABOVE THE LINE ACTIVITIES (ATL) TVC

TERRESTRIAL

PTV, PTV Home, ATV, ATV Plus

CABLE

GEO News, GEO Entertainment, AAG, ARY, MASALA TV, ZAIQA, ARY Zouq,

HUM TV, AAJ, Indus Vision, TV ONE, Express News

PRINT

NEWSPAPERS

Jung, Dawn, Express, Aman, Nawa-i-waqt

MAGAZINES

Living Express, Home Express, Mid-Week Magazine, Sunday Magazine, Akhbar-e-

Jahan, Family, Herald RADIO

- FM 107, FM 100, FM 101 (These are the main ones to achieve wider

listenership)

O O O


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OUT OF HOME

Billboards, Pillar Wrappings, Vehicle Graphics, 3D Boards, Transit

Advertising, Standees at POS

BELOW THE LINE ACTIVITIES (BTL) Point of Sale Kiosks

Stalls in the Food Exhibitions

Promotion in Supermarkets and Hyper marts (Makro, Metro, Imtiaz,Naheed, CSD etc.)

Mobile Vans in different towns (distributing free samples)

THROUGH THE LINE ACTIVITIES (TTL) All the BTL activities will be shot properly and would be aired on

different channels so that consumers can develop an association withthe brand


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Product Performance

Olpers has a very strong associationwith the consumers and has a verystrong market for its milk

Olpers enjoys a market share ofabout 50%

Consumers response towards theOlpers bread is very positive and they

like to purchase it instead of Dawn,Bake Parlor or Bradys just becausethese brand have a lot of qualityissues and consumers do not get freshbread everyday


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Olpers bread is positioned as a quality, fresh,

fluffy, tasty and healthy bread so that theconsumers would get a fresh bread everyday

and the bread would be more soft and fluffy

as compared to the competitors


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PRESENCE Olpers is one of the leading brands in

the milk industry and has no as suchquality issues till now. When consumerswould see the Olpers bread on theshelves they could easily perceive thegood quality of this bread because theyall are familiar with the good quality ofOlpers milk

RELEVANCE It is relevant to the needs of consumers

because now a days everyone is

conscious about the quality of productand consumers have a lot of issues ingetting a fresh bread


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PERFORMANCE

Olpers has been delivering quality for past few

years thus Olpers bread would also be committed

in delivering the quality bread to its consumers.

ADVANTAGE Since Olpers has a very strong relation with its

customers, it would provide a more healthy, soft

and good quality bread which would be anadvantage as compared to the other competitors


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BONDING Consumers have a very strong

emotional attachment with

the Olpers that could be seenduring the surveys

A very high level of emotional

appeal will be used in theadvertising campaigns thatwould enhance the customerattachment with the brand

Providing a consistent goodquality would also enhancethe relationship


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93%

7%

Yes

No


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56%19%

9%

8%

4% 4%

Dawn

Bake Parlor

Brady's

Wonder

Sunshine

Other


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10%

71%

19%

Small

Medium

Large


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69%

8%

11%

12%

Freshness

Well Baked

HealthyTasty


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72%

6%

7%

15%Longer period of

Freshness

Fungus Free

Breads are usuallynot baked well

Flavors can be

added


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97%

3%

Yes

No


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Through our market research we found out that theexpectations of people from Olpers are very highbecause they have complete assurance of its taste andquality. In other words we can say that it is positionedvery well in the minds of the consumers

93% of the people said that they are the regularconsumers of bread which means that we have a verybroad market

The key elements that people look for in the bread isfreshness and quality which leverage the entrybarriers for Olpers because both the freshness andquality of the existing brands are very average


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People still look for longer period of freshnessfor the bread and this insight can be catered byintroducing a bread which remains extensivelyfresh

Based on the existing image of Olpers, peopleare willing to buy its bread instead of any otherbrand because of their quality association with it

So the idea of launching a bread would not beprofitable only in the short-term but also in thelong-run

Documents

BM Olper's Bread