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Presented by:

Muhammad Arslan Usman

Hammad Bin Khalid

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Engro Corporation

Introductiono Engro Corporation Limited (formerly known as .Engro

Chemical Pakistan Limited.) is one of the largest

industrial corporations in Pakistan.

Engro Stands For Energy for Growth. Incorporated in 1965 as Esso Pakistan Fertilizer

Company

Name later changed to Exxon limited

Exit of Exxon (75% stake) in 1991, the companyunderwent an employee led buyout

o It operates in various sectors

Fertilizer Energy Business Automation

Solutions Chemical Food

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Engro Corporation

Our Businesses:

1) Engro Fertilizer Limited

2) Engro Foods Limited

3) Engro Chemical & Polymer Limited

4) Engro Powegen Limited

5) Engro Vopak Limited6) Engro EXIMP Limited

7) Avanceon Limited

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Engro Foods Ltd

Introduction

o Engro Foods Limited was formed as a wholly owned

subsidiary of Engro Corporation in 2005.

o It start its operation in 2006 and become major player

in Food industry.

o It launches multiple products

Ice Cream

Flavored Milk

Fruit Juices

Milk Powders

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EFL-Products Timeline

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Vision Statement:

Aim at transforming the company within the five

years into first national food industry giant, then

into regional force and finally into a global

player.

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Objectives and

goals:Engro Foods main objectives are to supplyeveryone their favorite OlpersMilk and to

satisfy the consumer need and wants.

Engro Foods second objective is to increasethe value for the stakeholders and company

value. We want to be the major player in the

food industry.

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Corporate Level Strategy:

Engro Foods is horizontally integrated itselfand increase its number of products. At this time

company has a lot number of products in the

market.

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Business Level Strategy:

Engro Foods wants to achieve more market share

than other competitors. In order to achieve the

more competitive advantage company uses the

differential strategy by differentiate its productsfrom other competitors. Engro Foods differentiate

itself in the form of taste, quality and availability

of their product in the market.

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SWOTAnalysis

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SWOT Analysis

Strengths: (internal) Worldwide fame of Engro.

Efficient milk collection system.

Keeping high quality standards.

Integrated distribution and warehousing facilities.

Successful related diversification.

Generic brand name of Olpers

Large market share of Engro innovative andchemicals.

Having Good reputation in the market by strong

brand name i.e. Engro

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SWOT Analysis

Weaknesses: (internal)

EFL 40% of milk came from direct farmers as compared

to Nestle which collect 70% from direct source.

EFl totally depends on the Tetra Packages for the packingof their entire dairy products.

EFL greater focus of sindh area as compared to Punjab.

Under-utilization of the capacity.

Unable to fulfill the demand of local powdermilk market.

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SWOT Analysis

Opportunities: (external) High urbanization rate.

High literacy rate.

Flexible government policies for food industry.

Have significant growth opportunities Has sufficient capital to expand.

Has the potential to innovate and differentiate the

company's products to sustain a competitive advantage

May merge with other global businesses to eliminatecompetitors.

Having Capable of expanding into other markets of the

world

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SWOT Analysis

Threats: (external)

High inflation rate.

Low purchasing power.

Decrease in GDP growth rate.

Increasing interest rates.

Decreasing investment.

Recessionary period in business cycle

Tough Competitors

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EFL BCG Matrix

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BCG Matrix-EFL Products

StarsOmore

Tarang

Question MarkOlfrute

Cash CowsOlpers

DogsTarang Powder

MarketGrowth

Rate

Lo

w

High

Relative Market Share

High Low

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PEST Analysis

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PEST Analysis

Political Factors:

EFL also abides by the rules formed by the Government

and set their strategies that are according to the laws and

legislations of the Government they are working under.

Tetra Pack (brick pack), that was for the first time that

milk came in that form soon followed by the Nestls Milk

Pak which as a multinational rocked the UHT Milk

industry of Pakistan. They are not actually bound under

any sort of trade agreements. As far as the employmentlaws are concerned Engro food abides to laws set by

the government for trade policies, government policies

and completes its responsibilities in a better manner.

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PEST Analysis

Economic Factor:

EFL is strongly affected by both the Economic and the

Demographic environment around and have to keep on

taking different steps to respond accordingly. There is nosales tax on the milk. Hence it is a real plus point.

Material supply and shortages are faced by the company

for both Packaging and for the product it, as milks

production is seasonal and keeps fluctuating and

adequate steps are required to be taken in order to keepit working smoothly.

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PEST Analysis

Social Factor:Engro food has helped to bring about a change in life style

of the Pakistani People by introducing UHT Milk, as the

literacy rate is improving and it is resulting in a better

awareness of the olpers and Tarang UHT treated milk

and is helping them improve their sales and Milk with its

basic benefits has helped improve the image and more

usage has been seen in the past years. Special

awareness Campaigns can also be launched and can

help portray a better image of the product in front of thecustomers. The attitudes of the people are also changing

with the passage of time so as a result the usage of open

gawala milk is changing and people are opting out the

usage of standardized packed milk.

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Threat Of New Entrant

The average entrepreneur can't come along and start a large food

company. The threat of new entrants lies within the food industryitself. Some companies have carved out niche areas in which they

underwrite dairy supply.

Cost and capital.

Specialist knowledge. Technology protection

New idea.

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Bargaining Power Of Supplier

The suppliers of food might not pose a big threat, due

to:

Large Number of suppliers

Importance of volume to supplier

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Bargaining Power Of Buyer

An individual buyer cant effect the industry while

large no. of buyer have more power with the industry.

There are large no. of milk supplier in the market so

there is less bargaining power of buyer. Another

reason of low bargaining power is that no

buyer/distributor has the resources to start involve in

backward integration.

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Engro Corporation Ltd Marketing32