Olpers Case Study

Principles of Marketing

Term Project

Phase 1

05- April-2012

Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value.”

Olper’s Mission

MARKET SEGMENTATION OF OLPER’S

Market segmentation is a very common and quite an important concept in the world of marketing. This enables one to divide the whole population into sub segments or section so that it becomes easy to identify the target market and thus enables the company or entity to effectively market themselves. There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Olper’s needed to divide the whole of Pakistani population into sub section so as to derive probable target market.

Olper’s is a milk product and thus the situation is such that it being a necessity would surely be demanded by the majority, however, there is a clash between loose milk and packaged milk. It is often perceived that packaged milk is expensive and is treated with chemicals therefore it should be avoided. Olper’s needed to tread on careful waters as to identify the relevant segments of its market.

Olper’s did so by placing itself in such a manner that it became the households number 1 choice in terms of milk used for everything, be it plain drinking, to tea and even for dessert. Engrofoods Pakistan had to establish different basis for segmentation such as demographics, psychographics, behavioral segmentation (this type of segmentation tends to divides buyers into groups according to their buying behavior and pattern), personal demographics (preference is given to income and household structures) and benefit segmentation (this involves specifying a base which benefits the end consumer). It is interesting to note that only in Karachi sale of Olper’s is 50% of the total sales thus leading to the...