The Marketing mix of Engro Foods analyses the 4Ps of Engro Foods, including Product, Price, Place, and Promotions. Engro Foods is a multinational enterprise that deals in beverages and food items. Based in Karachi, it is the subsidiary of a Pakistani company called Engro Corporation. Engro Foods is a manufacturer, processor, and dealer of drinks, frozen desserts, and dairy products. The brand has been able to carve an individual name for itself because it was determined to provide healthy, nutritional, and fresh qualitative products at minimum prices. The satisfaction of the consumers has taken the company to unimaginable heights as the enormous sales have resulted in the company maintaining its position at the top level of the international market.
Some of the consumers of its major competitors in today’s market are as follows-
- Haleeb
- Nestle
About Engro Foods
- Type: Dairy Company
- Industry: Food and beverage
- Founded: 2005
- Founder: Engro Corporation
- Headquarters: Karachi, Pakistan
- Area served: Pakistan Key people: Mr. Hussain Dawood – Chairman and Ghias Khan – CEO
- Number of employees: Over 1,700 Worldwide
Table of Contents
Engro Foods Product Strategy
Although Engro Foods started its operations using dairy products like milk, later, it included many food products under its product portfolio. To meet the demands of its health-conscious customers, Engro Foods recognizes that it deals with healthy food items with good nutritional value. Special attention has been given to the taste and quality of the products.
Engro Foods, a notable player in Pakistan’s food and beverage industry, has a diversified product mix with locally available brands and caters to various consumer needs. Their product range primarily includes dairy products and extends to other food items.
The new Product Mix of Engro Foods in 2023 is as follows (Source).
- Dairy Products: This category includes full cream, low-fat, and cream items.
- Beverages: Engro Foods offers a range of fruit juices and flavored milk products.
- Ice Creams: They provide a variety of ice creams available in different sizes and flavors.
- Milk Powder: Tarang’s special and creamy milk powder is a notable product in this segment.
- Lassi: A traditional yogurt-based drink catering to local tastes and preferences.
- Anhydrous Milk Fats: Used for various purposes like cooking and baking.
- Unsalted Butter: Derived from pasteurized cream of buffalo and cow, catering to cooking and direct consumption needs.
Engro Foods Place Strategy
Engro Foods is actively involved in the distribution of all its food products. It follows both the direct and indirect channels of distribution. Under indirect channels, Engro food products are available at almost all the large and small-scale outlets and stores. Even high-profile marts in foreign markets and showrooms with food item counters display the products of this company. This has become possible because of the transport owned by private firms. The usual channels under this scheme include the distributor, wholesaler, retailer, and consumers.
Engro Foods’ place strategy is a crucial aspect of its business model, focusing on efficient distribution and accessibility to maximize international brands’ market reach. Here are five essential points that summarize their approach:
- Extensive Distribution Network: Engro Foods has established a wide-ranging distribution network covering significant regions, with about 350 distributors. This network ensures prompt deliveries and widespread availability of their products across different market segments.
- Direct and Indirect Sales Channels: The company utilizes both direct and indirect channels for distribution. While indirect channels include large and small-scale retail outlets and high-profile marts, the direct channel involves sales through company personnel on cycles, trucks, or tricycles.
- Strategic Location of Processing Plants: Engro Foods has strategically set up dairy farms and milk processing plants in regions like Sahiwal and Sukkar. These locations are chosen for their proximity to raw material sources and market accessibility.
- Global Expansion Strategy: Engro Foods has ventured into international markets besides its solid domestic presence. This includes acquisitions like the American food company Al-Safa Halal, marking its global market expansion.
- Focus on Freshness and Quality in Distribution: Engro Foods highly emphasizes the freshness of its products. The company has dedicated departments and a workforce for milk procurement and quality assurance, ensuring its products maintain a high standard of freshness and quality throughout the distribution process.
Engro Foods Pricing Strategy
Engro Foods has decided to follow a competitive pricing strategy for its products. To do so, it has kept a careful watch on the market economy and the pricing policies of all its competitors. It receives regular feedback that helps it determine realistic food prices and fix the prices of its products. The market demand is another deterrent in determining the prices, and Engro keeps the lowest possible prices without hampering the quality of the product.
Engro Foods employs a multifaceted pricing strategy to navigate the competitive landscape of the food and beverage industry. Here are the critical elements of their approach:
- Competitive Pricing: Engro Foods keenly observes market trends and competitor pricing policies to adopt a competitive pricing strategy. This approach ensures their products are attractively priced, balancing quality and affordability, to appeal to a broad consumer base.
- Flexible Pricing for Market Penetration: They have implemented a flexible pricing model that allows adjustment based on market demand and other economic factors. This flexibility is crucial for penetrating different market segments, especially in the diverse and price-sensitive markets they serve.
- Volume-driven Profitability: Engro Foods focuses on achieving profitability through high sales volumes rather than high margins per product. This volume-driven approach is efficient in markets where price sensitivity is a significant consumer consideration.
- Premium Pricing for Select Products: Engro Foods adopts a premium pricing policy for specific products. These products are positioned to offer additional value, targeting brand-conscious consumers who are willing to pay more for perceived higher quality or brand prestige.
- Cost Management for Pricing Advantage: Engro Foods works diligently to manage and reduce operational costs. This cost efficiency enables them to maintain competitive pricing while ensuring product quality, delivering value to customers, and maintaining profit margins.
Engro Foods Promotion Strategy
Engro Foods’ marketing strategy is consumer-centric, making it a massive success in the food industry. Under its promotional strategy, it has given special attention to its packaging and marketing. The attractive, high-quality packaging is also colorful, making it distinctive and eye-catching. Tetra packs protect the flavor and freshness of dairy products in distinct colors like purple, orange, green, and yellow. An Engro food product is easily recognized at a glance. Engro Foods has realized the importance of homemakers in the scheme of their things and has been actively targeting homemakers to buy their products. The healthy milk products are a hit with them, and the kids love the taste of the brand’s milk items and ice creams.
Engro Foods recognizes the contribution of active advertising to make high sales. The vision of the international company is “Elevating Consumer Delight Worldwide,” for this purpose, it has used print media to highlight its products in every nook and corner. Billboards, magazines, and newspapers are an essential part of their strategy. Besides this, they have created noticeable ads that are colorful with catchy tunes and made them a part of the electronic media, especially television and radio. Advertisements are also displayed on vehicles like buses, trucks, and trams.
Some Recent Video ads and Print ads for Engro foods are:
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