This document provides a marketing report on segmentation, targeting, and positioning for Engro Foods' Olwell milk product as it plans to launch in Sahiwal, Pakistan. It summarizes Engro Foods' history and vision, describes the Olwell product, and outlines how the company has segmented the Sahiwal market geographically, demographically, psychographically, and behaviorally. It also discusses Olwell's positioning and differentiation strategies, and recommendations for its placement, distribution, pricing, and promotion approach in Sahiwal.

1. In the name of ALLAH, AR-Rahman, AR-Raheem.
Marketing Report on Segmentation, Targeting and
Positioning.
Submitted to:
Mr. Faisal Iqbal
Submitted by:
Muhammad Rizwan MBA-B6-001
Muhammad Wasim Hashim MBA-B6-029
Farina Sadiq MBA-B6-055
Muhammad Kamran Sajjad MBA-B6-047
COMSATS Institute of Information
Technology, Sahiwal

2. Acknowledgement
We are grateful and thanks to our Allah, Who is
the merciful and beneficent to help in
conducting this Report.
We dedicate this work to our parents and
persons who pray for our good future. In the
last, we thanks and also appreciate our
Marketing Instructor MR. FAISAL IQBAL,
whose keen interest and coordination get this
work completed.
Table of contents

3. Engro Foods’ History ..........................................................................................................4
Vision ..................................................................................................................................4
Core Values .........................................................................................................................4
Plan of Action......................................................................................................................5
Product ............................................................................................................................5
OLWELL Hi-Cal Lo-Fat (HCLF) Milk ......................................................................5
Segmentation and Targeting................................................................................................7
Segmenting and targeting the market for Olwell ............................................................7
Geographic segmentation.................................................................................................7
Demographic segmentation ............................................................................................7
Psychographic segmentation............................................................................................8
.........................................................................................................................................8
Behavioural segmentation ...............................................................................................8
Positioning and Differentiation ...........................................................................................8
Placement & Distribution ...............................................................................................9
Promotion ......................................................................................................................11

4. Engro Foods’ History
Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a
diversification process at the Engro Group. The plant located at Sukkur on 23
acre land, has the raw milk reception capability of 300,000 liters per day and
UHT milk capacity of 200,000 liters per day. The plant has been established at a
cost of Rs. 1 billion which provides direct employment to 750 people. Engro
Foods has entered the Food business through milk processing and sale with the
company’s vision to pursue growth opportunities based on country fundamentals
and own strength.
Vision
"Our vision is to become a fast expanding mega foods company. To achieve our
vision, the company will initially focus on dairy by investing a substantial amount
in plant, milk collection capability and marketing. We are making concrete efforts
to expand in and beyond Pakistan; through strategic international alliances, to
eventually become global."
Core Values
1. Leadership
2. Innovation
3. Diversity and International focus
4. Quality and continuous Improvement
5. Open communications
6. Individual growth and development
7. Safety, Health and Environment
http://www.engro.com/our-company/

5. Plan of Action
In this report, we have described about the product of EFL’s “OLWELL. Company
is now introducing this Product in Sahiwal. EFL’s marketers focus is Olwell milk.
Company has segmented the market and narrated the market mix while having
Sahiwal market in mind. It would be beneficial for the company to launch Olwell
in Sahiwal city.
Our following report is aimed at examining the marketing mix of Olwell which we
are going to launch it in Sahiwal. Olwell company also make a plan to create
differentiation from the competitors. Company also decide to promote the product
after increasing the sale of the product.
Product
OLWELL Hi-Cal Lo-Fat (HCLF) Milk
Launched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the
richness of pure milk. It is an ideal choice for weight-watchers and heart patients.
It is also high in calcium content, which prevents osteoporosis.

6. Product line:
► Olper’s Milk
3.5% animal fat base in 250 ml, 0.5 liter, 1 Liter,
► Olper’s Cream
(40% fat)
► Olwell Milk
0.9% fat (low fat high calcium recipe) in 1 Liter
► Tarang Milk

7. Segmentation and Targeting
Segmenting and targeting the market for Olwell
It is difficult for any one company to engage in mass production, mass
distribution and mass promotion for its product. The coverage the mass
production through advertising and distribution channels is very costly.
Therefore, companies segment the market so that they can target the group of
customers who share similar needs and wants. Customers want milk full of
calcium, low fat, carefully processed, and good for health and bones. Keeping
these things in mind Olwell’s market has been segmented.
Geographic segmentation
Engrro Foods Limited has made segmented the market for each of its product. But in
the case of Olwell, EFL has segmented the market more carefully because it has
unique qualities among the product line.
For the purpose of targeting the company has divided the Sahiwal city into three
main distinctive parts named as Farid town and Tariq bin ziad colony, old civil
lines and rest of the city.
Demographic segmentation
EFL’s products are not bounded to any particular age, gender or lifestyle. The brand
is meant for all the users in higher upper or middle class families. Processed milk is
mostly used by upper class and usually lower class does not use it. The reason may
be that they are price sensitive or they prefer conventional milk. As far as upper
class is concerned, it can be said that they want a special kind of milk which is better
for their health too. And Olwell may be good choice.
With the Sahiwal perspective we can say that company has to segment the market
by keeping Sahiwal in view. If it comes to launch Olwell in Sahiwal, it should target
age group from 20 to 35 years. But for girls this age range can start from the age of
15 year. And gender does not matter a lot. Educated people are also segmented
by company because they are more conscious about their health.

8. Psychographic segmentation
On the basis of psychographics, factors such as personality characteristics, lifestyles
and values are considered at the time of segmentation. For Olwell, company has
segmented the market towards distinctive people, whose lifestyles is modern and
contemporary. For example the ads for Olwell mostly show people while exercising.
Secondly, they show a model girl in red dress, with smart figures. The EFL’s
products especially Olwell has been targeted at such persons. Many of the
customers will make their first purchase because they want to try something new.
As far as psychographic aspect of the Olwell is concerned, it should be targeted to
those Sahiwalians who wants to be distinctive and unique. Olwell is demanded to
those who are conscious about their health and want to use such milk which has low
fats.
Behavioural segmentation
Company targets regular as well as first time user in behavioural segmentation
stage. Olwell is not for special occasion but it is for special purposes like for
enhancing health. So, for Sahiwal, company is focusing to those customers who are
already using EFL’s products as well as those who has exposed to the
advertisement of it for the first time.
Positioning and Differentiation
Positioning involves designing the product and image that will occupy a distinctive
place in the minds of the target market. As can be seen, nestle (Nesvita) and Haleeb
(Skimz) have the largest profit margins and market share in the milk industry. Thus
the marketers at Olwell have decided to create its own unique image and then
strengthen the position in the customers’ minds. They have done this by taking a
number of following steps:

9. 1. Olwell Packed in 6-layered Tetra Pak Brick Aseptic good packaging with
easy-to-open plastic cap, it comes with a 3 months shelf life.
2. Olwell in red color and is quite different and distinctive from the typical green and
blue packing used by other competitors.
3. Olwell is positioned to selected market segment who are keen for healthy milk. Its
low fat and high calcium property positions it a better choice for such people.
Tagline of any product helps a lot in positioning purpose. Tagline of Olwell is
This tagline gives the thought that this milk energizes the customers. And it is very
hard to give up it.
The marketers should use different positioning for Olwell:
a. They should use the attribute positioning for Olwell milk. The main theme of the
product should be that it has all possible attributes for health conscious people. It
has made it possible for those who wants to use milk without its fat contents.
b. They used the benefit positioning for Olwell. The product is positioned as delivering
the benefit of helping to reduce weight and for healthy bones.
Placement & Distribution
EFL has its distribution system in 80 plus cities of the country. Its products can
be seen in every small and big city. Distribution system of any company starts
from its suppliers. Which are farmers here. EFL has strong and close relationship
with the milk producers. It also claims to carrying out some poverty alleviation
programmes in villages where from it collects milk. This is the reason why it is
successful in becoming one of the main players in this industry. But all of this
discussion relates to EFL’s products.
And, here, our product is Olwell. Olwell is not distributed widely like other
products of EFL. It is because of its distinct positioning. When we want to

10. distribute in the Sahiwal city, those existing retailers will be right choice who have
EFL’s products. While focusing those areas which are specified in the
segmentation.
For better placement strategy , EFL has been successful. Handsome benefits to
retailers are inducing them to provide EFL’s products a proper shelf space. But in
Sahiwal, our focus should be related shops at College Chowk, high street, and
big stores, along with small stores too.
Bright and unique colours of its products make customers realize about its
existence. This is very crucial in stiff competitive market.
Price
EFL IS pursuing the competitive pricing strategy for its products. In competitive
pricing the price of the product is determined considering the price of major
competitors like Nestle, Haleeb etc.
In fact, Pakistan is one of the largest milk producing countries where almost 80%
milk is distributed through conventional means. And rest of the 20% market is
captured by many companies amongst which Nestle and Haleeb are
notable.Targeting of Olwell is such a market segment which is willing to pay extra for
some added contents in the product. Olwell has its competitors in the market named
as Nesvita, which also targets the same market segment
When it comes to the case of Sahiwal where we are going to launch the product,
Farid town and Tariq bin ziad colony should be our main focus. We are addressing
the price aspect of Olwell, so obviously segmentation under income consideration
will help us here. In the result we have got above mentioned two areas for our
purpose.

11. Promotion
As far as promotion of Olwell is concerned, simply TVC’s, print ad are important
choices. Any how, we suggest that they have to rely on print and electronic media for
promotion of Olwell.
In Sahiwal, EFL has to use billboards and cable TV for advertisement. It is seen as
very effective means to position any brand in the minds of people in specific area.
Recently, many advertisements are on aired on cable TV in Sahiwal. People
perceive, well through those ads. So same should be adopted here in Sahiwal, for
Olwell.
Display centres can be a good way to introduce Olwell in Sahiwal. In populous and
crowded areas of market, these display centres can attract attention of many
customers.
Events can also be organized in educational institutions, parks and other captive
environment to make awareness of Olwell.