BUSN 480
MARKETING RESEARCH
AYESHA AZHAR
241547928
SUBMITTED TO: MA’AM MARYYAM KHAN
“Animating Happy Subah, Olper’s Strategy for Flavoured Milk Dominance”
Introduction:
Engro FrieslandCampina is currently enjoying the outcomes of a very successful year, having
crossed the remarkable Rs 60 billion sales level and marking a major milestone. Notably,
Olper's, the company's flagship brand, has effectively closed the gap with Nestle's Milkpak, the
leading milk brand in Pakistan. Although one may expect a joyful celebration at the corporate
offices, the FrieslandCampina employees seemed to be feeling differently.
The people at Friesland will undoubtedly be pleased with their recent outstanding performance.
Nonetheless, there might be a faint undertone of contemplation going on behind the scenes. In
the very competitive dairy and alternative product sector in the nation, FrieslandCampina has
crossed the Rs 60 billion sales milestone and secured a strong second place, although it is still
far behind its closest rival.
Friesland continues to see a large vacuum in the wide world of dairy goods, as evidenced by its
sales, which are a little over Rs 120 billion. This contrast between accomplishment and
ambition reveals the bold course that Friesland is taking. Even while they rejoice in their
accomplishments, there is a tangible understanding of the significant distance that must yet be
travelled to close the gap and establish a stronger position in the market. The company's
dedication to ongoing expansion and strategic positioning within the ever-changing dairy sector
in Pakistan is shown in this complex viewpoint. The story of Friesland's incredible journey in
the dairy sector is shaped by the conflicting feelings of victory and recognition of upcoming
obstacles as it considers its next course of action.
Background:
FriеslandCampina Engro Pakistan Limitеd, еstablishеd in 2013 as a collaborativе vеnturе
bеtwееn thе Dutch multinational dairy coopеrativе, FriеslandCampina, and thе lеading
Pakistani conglomеratе, Engro Corporation, holds a pivotal position in Pakistan's dairy and
nutrition sеctor. This stratеgic alliancе mеrgеs thе global еxpеrtisе of FriеslandCampina with
thе local markеt knowlеdgе of Engro Corporation, aiming to fostеr sustainablе dairy practicеs,
boost agricultural dеvеlopmеnt, and addrеss nutritional challenges in thе rеgion. Thе company's
comprehensive opеrations encompass milk collection, procеssing, and thе marketing of a
divеrsе array of dairy products, contributing significantly to thе growth of Pakistan's dairy
sector and thе ovеrall economy.
At thе forеfront of FriеslandCampina Engro Pakistan Limitеd's success is Olpеr's, launchеd in
2006 as thе flagship brand. Formerly known as Engro Foods Ltd, Olpеr's has еvolvеd into a
lеading playеr in thе UHT milk catеgory in Pakistan. Rooted in a commitment to delivering
high-quality nutrition and purе goodnеss to familiеs across thе country, Olpеr's focusеs on
collecting frеsh and purе milk from farms nationwide daily. Rigorous quality standards,
including 28 different types of quality tеsts, еnsurе that Olpеr's Milk is prеsеrvativе-frее, UHT
trеatеd, and mееts thе highеst safеty and hygiеnе standards. Rеnownеd for its purity and tastе,
Olpеr's has bеcomе a prеfеrrеd choicе for mothеrs sееking nourishmеnt for thеir familiеs,
pionееring innovation in thе UHT catеgory with various pack formats and sizеs that еnhancе
convеniеncе and accеssibility for consumеrs. Whеthеr usеd for drinking, making tеa, or
prеparing dеssеrts, Olpеr's stands out as thе idеal all-purposе milk, capturing thе еssеncе of
major usagе occasions for milk in Pakistan. The facts and figures can be seen in (Exhibit 1) The
financial performance of the company for the half year ended June 30, 2023, by Pakistan Stock
Exhange can be seen in (Exhibit 2).
Market Analysis
With its dairy segment consistently rising in size and, in certain regions, even tripling over the
past decade, Nestlé's dominant position in the dairy industry has persistently overshadowed
Friesland. This enduring standard, seen in Exhibit 3, attests to Nestlé's outstanding market
position. However, underneath this dominance is a multidimensional reality. Nestlé's
dominance in Pakistan's dairy and alternative product market isn't just due to its size; it also
stems from the breadth of its product line, which outpace even the expansive range offered by
Friesland, especially by Olpers. The data show a significant difference, with Nestlé leading the
field by a commanding 35% to 18%, as seen in (Exhibit 4).
The competitive situation is further highlighted by breaking down the dairy and alternatives
industries by brand. Nestlé's leading products, Olper's, Tarang, and Dairy Omung, are much
behind their Friesland equivalents by an extremely slim margin. However, Nestlé's
competitiveness is more nuanced when one looks at its wide range of products, which go
beyond dairy to include specialised products like infant formula, which Nestlé excels at (see
Exhibit 5).
The industry's notable rivals included Dayfrеsh, Pakola, Shakarganj, and Nestlé's well-known
Milo brand, which created a unique and dynamic market. Olper's strategy is interesting in part
because it deliberately chose not to compete for supremacy in the flavor-infused milk market.
Faisal Amanat Khan, General Manager of Marketing at FriеslandCampina's, states that the
company's goals go beyond achieving conventional market share gains in the relatively small
flavorful milk market. Rather than prioritising immediate market dominance, Olper's focuses on
accelerating the category's overall growth, demonstrating a strategic commitment to market
development. This strategic approach reflects a commitment to long-term industry
sustainability as well as an in-depth comprehension of market dynamics.
The Cartoon Logic
First things first, what is the purpose of the cartoon? This isn't particularly a novel tactic,
though. In the past, cartoons have been employed in this nation to advertise goods. The
Commander Safeguard soap opera, which proved to be a successful advertising strategy in
addition to a well-liked programme that continues to be an integral part of culture from the precable period, may have been the first to do so. During its brief duration in Pakistan, Tetra Pak
produced Tetrapak Milkateers, a more expensive product than Commander Safeguard, although
it was less successful than Commander Safeguard. Caltex advertised themselves through a
comic book about cricket called Supa Tigers. (Exhibit 6) Recall that they are real cartoon
productions intended for television, not the stereotyped characters that many products have.
The intention is to spark children's interest in the way it looks so they will be motivated to
purchase the item. Although it sounds absurd, it functions.
Olpers Journey to Lunchboxes
We conducted research approximately a year and a half ago in an effort to determine the causes
of the category's slow growth. It was determined that this is because it is not linked to a
consuming occasion, as FrieslandCampina's General Manager of Marketing Faisal Amanat
Khan clarified. According to Khan, "brands and categories become more relevant to consumers
by naturally fitting into their existing habits when associated with a relevant consumption
occasion."
The event for which that cartoon hopes to get popularity? Lunchboxes for kids. Olper's is
present in multiple locations and there is a general focus on children's health, but it appears that
the flavouring milk is targeting kids' lunchboxes.
In other words, how does Friesland want to increase the popularity of Olper's lunchbox
category?
It's interesting to note that Olper's is steadfast in its determination to refrain from comparative
advertising, which encourages consumers to choose their product over a competing one. But
advertising doesn't have to be as simple as openly criticising your rival.
Look at this fun fact!
Contrary to popular belief, Milo is a malt and not flavoured milk. Does it matter which way you
arrange this? Yes and no, then. Milo's devoted fans will never stop consuming the product. But
since Olper's is trying to promote health, one can't help but wonder what happens when viewers
of the animation start questioning the nutritional content of Olpers' rivals.
Additionally, Friesland's portfolio at Olper's doesn't contain anything that might be considered
harmful, so praising health in the cartoon won't cause flavour-infused milk to eat away at any of
Olper's current sales. To put it briefly, Olper's has the potential to significantly improve health.
Emaad Ishaq Khan, Executive Director at Synergy Dentsu & Synite Digital, says, "With the
growing discouragement towards juices due to heightened awareness levels, the brand is
strategically leveraging the health and energy benefits of milk (think Milo), specifically
targeting children." The cartoon's clever design aims to help kids remember and embrace the
flavour-infused milk. It seeks to provide comfort and recognition, so they don't reject it. It also
helps create a deep bond with the kids and blends in important stories. Ishaq Khan explains,
"This makes it easier for mothers to offer it to their children with the assurance that it's a
healthier alternative."
It's not easy to navigate the complexity of kids' lunchboxes, especially when you have to deal
with things like set physical dimensions and fixed parental incomes. Consequently, the craft of
packing a kid's lunchbox becomes a calculated undertaking in which some items invariably
become more important than others.
If there isn't a miraculous increase in the typical size of a child's lunchbox or an abrupt rise in
parental wealth, the decision regarding the lunchbox becomes a deliberate one, driven by the
requirement for adequate nutrition. Amid this dilemma, one would wonder: how can we support
moms in this never-ending task more effectively than by consistently emphasising the critical
role that nutrition plays? A subtle approach that emphasises the overall advantages of a healthy
lifestyle for a child along with the intrinsic nutritional value of a specific product seems to be a
subtle form of competition hidden under the cover of health benefits, even though there's no
need to openly declare other products nutritionally inferior. The conversation about child
nutrition in relation to lunchbox options becomes a chance for companies to connect with
parents and other carers who are trying to do what's best for their kids' health in this fine line
between practicality and health conscience.
How Well Will a Cartoon Contribute?
When businesses want to promote to children in Pakistan, they find that it is easier to just kind
of put a cartoon in it. Countless larger businesses can be seen interacting with cartoons.
Animated characters that instantly come to mind are Bisconni's Coco and Mo, Tetra Pak's
Milkateers, and Knorr's vibrant spices. (Exhibit 7) However, as we've already indicated, all of
these are mascots rather than real productions, with the exception of the Mikateers. Only
Commander Safeguard from P&G was able to reach that level. And creating a high-quality
product that appealed to the intended audience was essential to the show's success.
The main issue is that, even when we do venture into the realm of cartoons, we tend to do so in
a somewhat boring manner. Usually, they are 2D characters. We don't give the brand enough
attention. A cartoon can never get enough publicity to become widely recognised. Then your
whole life hangs precariously on the television commercial (TVC), which is also kind of small.
Of course, a cartoon restricted to YouTube alone is going to have a difficult time. particularly if
the people in your target demographic are constantly being targeted by YouTube's algorithms
and have the opportunity to watch, of all things, Cocomelon.
Olper’s Portfolio and the Question of Having a Cartoon
When we widen our lens to see the cartoon from a wider angle, its underlying logic becomes
even more clear. A close examination of Olper's work reveals a clear focus on breakfast and,
implicitly, a dedication to encouraging healthier living in a broader sense. When you delve into
the details of a child's day, you find that decisions regarding what to take in their school
lunchbox are always influenced by the breakfast choices they make.
Even while some could contend that our interpretation verges on the exaggerated, it's crucial to
remember that these kinds of studies are by their very nature subjective. But it's important to
recognise that the cartoonists show a sophisticated grasp of portfolio management in their work.
The way in which a child's morning routine is shown and the lunchbox choices that follow
highlight a strategic coherence in Olper's brand narrative. This relationship is subtle but
powerful. It indicates a skilful understanding of the connections between routines and decisions
made on a daily basis, demonstrating a deliberate approach to portfolio management that goes
beyond simple product placement. From this perspective, the cartoon offers a perceptive
depiction of Olper's overall approach, which is consistent with their larger dedication to
promoting good lifestyle habits.
As mentioned, part of our analysis entailed closely examining the cartoon, and we also
emphasised that Olper's doesn't just incorporate flavor-infused milk in the animation. This is
important because it connects to our conversation about synergy. And that was just the first
episode. We can only speculate that upcoming episodes might feature Olper's dairy milk or
cheese. If Friesland so chooses, they could sprinkle their extensive product line throughout the
entire series. They might even use it as a starting point to develop the brand equity needed to
present the infant products discussed before.
That Makes Sense!
In a nutshell, Engro-FrieslandCampina, sometimes known as Friesland, is at a critical juncture.
Even though it has made great progress and reached important milestones, Nestle continues to
dominate the dairy industry. The problem is not just in rejoicing in the past but also in planning
for the future.
Friesland is taking a risk to create out a niche in the market for flavoured milk rather than
complacency. This action suggests a calculated attempt to gain market share in areas where
Nestle is not yet well-established, as is the specialised cartoon marketing approach that goes
along with it.
The broader dairy product environment makes the strategic focus on flavoured milk even more
appealing. In several categories, Friesland appears to be staying out of direct competition with
Nestle, which has a significant advantage. Rather, the use of cartoons in the marketing effort
and the focus on a certain product category show a conscious decision to influence consumer
attitudes.
The use of cartoons in marketing is not totally new, but it does follow a tried-and-true method
for drawing in younger people. Friesland wants to create a special event for consumption by
linking its flavoured milk, especially with kids' lunchboxes. Although the cartoon's success is
still up in the air, it gives Friesland more opportunities to market its wide range of products in
the future. It's a calculated strategic choice to concentrate on a particular market rather than
trying to take on Nestle's wide variety.
Friesland is essentially at a crossroads where it must decide between taking proactive action
and being a passive observer. The company's current growth trajectory, which has seen it
surpass Nestle at times, points to the possibility of more market disruption. The dairy industry's
future dynamics may be influenced by Friesland's strategy choice over whether to actively work
to close the gap or wait patiently for decades to take the lead in the sector.
The dairy sector is changing, and it begs the question: Will Friesland's creative strategy of using
cartoons and flavoured milk be the game-changer it hopes for, or will Nestle's unstoppable
domination remain? The result of this calculated move and its ramifications for the dairy
industry's competitive environment will become clear in due course."
EXHIBITS
Exhibit 1:
Exhibit 2:
Exhibit 3:
Exhibit 4:
Exhibit 5:
Exhibit 6: Real Productions
Exhibit 7: Mascots