Marketing NurPur Assignment (Marketing) "NurPur Milk" Submitted to: Professor Shehzad Alam Submitted By H.M. Awais Aslam Junaid Chaudry Zaid Ahmed Arslan Ahmed Shamsher Ahmed L1F08MBAM0139 L1F08MBAM2063 L1F08MBAM2142 L1F08MBAM2049 L1F08MBAM0079 Group Alphabetic number: G Section Number: B 1 Page 1 of17 Marketing NurPur Table of Contents NurPur Foods…………………………………………………………………………………..3 Introduction…………………………………………………………………………………………3 History………………………………………………………………………………………………3 Vision……………………………………………………………………………………………….4 Our Goals…………………………………………………………………………………………...4 Core Values…………………………………………………………………………………………4 Product………………………………………………………………………………………………5 Milk Categories……………………………………………………………………………………..6 UHT Milk………………………………………………………………………………………...…6 Pasteurized Milk..........................................................................................................................…...7 Flavored Milk…………………………………………………………………………………...…..8 Price…………………………………………………………………………………………...…...13 Place/Distribution……………………………………………………………………………….....15 Promotion……………………………………………………………………………………….....16 2 Page 2 of17 Marketing NurPur Company Name: NurPur Foods Introduction Noon Pakistan limited (NPL) is a public limited company and is quoted on Karachi stock market. Its Rs.10 share is currently trading at Rs.194, which show the strength of the company. there is no direct linkage or dealings amongst The Group Companies except having some same directors on Boards of all the companies. The company has its head office at Lahore and the planet is located at bhalwal.150 km up north and is connected through Lahore-Islamabad motorway. The company is run by an experienced and qualified team of professionals, under sunder supervision of the chairman and directors. The company has nearly 300 permanent and 320 contract employees at the plant and head office in milk collection, processing, engineering, transport, laboratory, finance, administration and sale & marketing departments. Due to excellent relationship between the management and employee, the workers have not formed any trade union at the plant or the head Office. History Noon Pakistan Limited (NPL) was incorporated in 1966, and went into production in 1972 and started marketing Milk powder, Butter and Cheese under brand name of “NURPUR”. Later pasteurized Milk, Jams, and UHT Milk/Cream were added. Nurpur ,being the market leader in butter and Cheese, has earned a name for itself due to high quality and consistent standard and for this reason had no difficulty in penetrating UHT Milk Market against giants like Nestle and Haleeb. Noon Pakistan limited equity base and fixed assets have increased substantially to Rs. 79 million and Rs.347 million in the form Rs.6 million and Rs.89 million respectively. The year (2004-2005) turnover has jumped from Rs.303 million to near Rs.1 billion. 3 Page 3 of17 Marketing NurPur Vision Quality is the cornerstone of our success for the last 33 years; we want to become market leader by providing quality products to Pakistani consumers. However we would like to avail the export opportunities whenever possible and convenient. Our Goal We live in a competitive world and must never forget that our customers have a choice. If they are not satisfied with nurpur product, they will switch to another brand. Our goal, therefore, is to provide superior value in every product category and market sector in which we compete. Core Values • • • • • • • Customers are at the forefront of everything we do. Ideas are constantly challenged to develop next generation solutions. Business is conducted openly and fairly – but we compete fiercely. Team-work is encouraged with individual flair for the best results. Tough goals are set – and we enjoy the challenge of beating them. Environment – We value preservation of the environment and sustainable organic agriculture. Community – We value mutually supportive relationships among members of our local and global communities. 4 Page 4 of17 Marketing NurPur Product Product Name: NurPur Milk Milk: Milk – one of nature’s most completed foods … almost a meal in itself. An excellent source of energy, Protein, Minerals, Vitamins, it is also the best source of Calcium. Milk is a fundamental element of good diet, particularly for bone development and protection. Milk is a precious but fragile raw material that requires technical expertise and know-how to process. Nurpur has over 30 years of experience and has developed state-of-the-art dairy processing Nurpur’s list of top priority when it comes to milk: Protect great taste from dedication to monitoring quality, Provide special care Pay attention to detail in the processing and packaging steps of production Through our careful processing and packaging, we have been able to retain great taste, while preserving fat, protein, important vitamins and minerals. 5 Page 5 of17 Marketing NurPur Milk Categories UHT Milk: Ultra High Temperature treated milk products will easily keep for more than three months outside the refrigerator. Standardized at 3.5% fat and 9% SNF, Nurpur has captured market because of its high quality standards, mainly used for drinking, milk shakes and tea making. UHT Packing Packed in 250ml, 500ml, and 1000ml volumes in Tetra Brik Aseptic Packing. 6 Page 6 of17 Marketing NurPur Pasteurized Milk Nurpur Whole Pasteurized Milk has 3.5% Butter Fat and 9% SNF, free from additives. Whole pasteurized Milk has a very creamy and rich flavor and many essential vitamins and minerals. Nurpur fresh pasteurized milk has been our guarantee quality label for many years Pasteurized Packing Packed in 1000ml, 500ml volumes in handy and hygienic packaging. 7 Page 7 of17 Marketing NurPur Flavored Milk: Flavored Milk is made from the highest quality standardized milk (3.5% fat) and is carefully formulated and processed to produce an unparallel high quality, great tasting flavored milk. While using different flavored milk, you will enter in world of flavors. Flavored milk is a cool way to get in your daily intake of important nutrients such as calcium, vitamins A and D and minerals like phosphorus, magnesium and zinc; it helps build a strong body, healthy teeth and bones. Flavored Packing Packing in 1000ml volumes in Tetra Aseptic Packing. Categories of Flavored Milk Currently Nurpur is producing three types of Flavored Milk: Strawberry Flavored Milk Average Nutritional Values: (per 100ml) Carbohydrate Fat Protein Minerals Vitamin A Vitamin D 12g 3.1g 3.0g 0.8g 0.16m 40l.u Mango Flavored Milk Packed in 250 ml volumes in Tetra Aseptic Packing Amount Per Serving: Total Fat 7g 8 Page 8 of17 Marketing Saturated Fat Cholesterol Total Carbohydrates Sugar Sodium Protein 5g 27mg 27g 17g 113mg 7g NurPur Banana Flavored Milk Packed in 250 ml volumes in Tetra Aseptic Packing Average Nutritional Values: (per 100ml) Carbohydrate Fat Protein Minerals Vitamin A Vitamin D Calcium 12g 3.1g 3.2g 0.8g 200.l.u 40.l.u 0.1g Milk suppliers: As Nurpur is a dairy company its basic raw material is milk which is supplied by the farmers. Bhalwal, located in Sargodha district is the core region for collecting milk supplies. Bhalwal is an agricultural land enriched with water and pastures. Dairy animals are found in abundance here. 60,000 to 70,000 litres of milk is collected from this region only. For the suppliers, it has constructed chillers to keep milk fresh. Maintenance is done by Nurpur but the profit goes to the chiller owners. It provides Rs 2/- extra to the milk suppliers. Competitors: There are different competitors of Nurpur in different brands. Some are as follows: 1. Nestle 9 Page 9 of17 Marketing 2. Dairy pure 3. Candia 4. Milk pak 5. Haleeb 6. Olper’s 7. Good milk NurPur Testification of ingredients: Nurpur uses high quality ingredients. They use ISO22000 ingredients that are highly testified in laboratories. Research: The company does not have a research and development department. However a single person is employed for this purpose. He carries out little researches and gives his suggestions for further improvements in product development. Tetra Pak mostly carries out the researches for Nurpur but recently Nurpur hired a company Aftab associates for the purposes of research Nurpur carries out observational research on large scale. It observes people’s buying patterns, spending patterns, general trends, influential factors etc to modify and develop its products. Coding of milk products: The milk product are coded up in a sequence to check their description, their time of manufacturing ,to check out have they reached their destination. Growth strategy: Market development and product development are a step by step process. Growth cannot result if any of the steps is missing. Nurpur penetrated the market by introducing butter nad tetra pack milk. Nurpur is very much quality conscious. Whenever the name of Nurpur is mentioned the first thing which stuck people’s mind is butter and milk. Gradually with the passage of time people’s income 10 Page 10 of17 Marketing NurPur increased and so did knowledge. They realized that tetra pak milk is far better than gawala milk so more people started purchasing Nurpur milk even if it cost people more than the gawala milk. This is how Nurpur developed its market. Factors that effects the milk product: Economic factors As Nurpur is a national level company it does not have much budget. It always has a fixed budget even at times Tetra Pak shares the expenses. On the other hand changes in income of the people also affect the company. If people’s income will increase their purchasing will increase. Natural factors Natural environment is of key importance to Nurpur. Milk comes from dairy animals; they graze in the fields and meadows. If there is less rain there will obviously be a shortage of pastures and meadows which in turn will cause less production of milk in the cows. Collection is the most critical part in the collection of the milk therefore natural environment affect every dairy company a lot. Technological factors Advancements in technology have greatly affected Nurpur. New machinery, use of computers has been very beneficial. In the past Nurpur had been using TPA9 machine for packing of 1 liter milk which had an output of 5000 packs per hour. But now with a deal with Tetra Pak, Nurpur sold TPA9 to Tetra Pak and with the addition of little money bought TPA22 which has an output of 22000 per hour. Nurpur has 4 of such machines now. Product quality: Nurpur products are excellent in quality. Nurpur makes no compromise on quality. They are maintaining their standards in milk. They know that if they false product the consumers can challenge them in court through PDA. 11 Page 11 of17 Marketing NurPur Product style and design: Product style and design is usually made by Blitz agency and Tetra Pak packaging. They style and design all the products. Labeling Labeling on packs is done by BLTZ agency and tetra pack. Nurpur is obligated by Health Department and FDA to print certain things on its packs like fat and calories information, expiry date and statement standardize UHT milk. Even though the milk does not expire for a year but it’s a rule to print 6 month expiry date. Product Age Flavored Milk Pasteurized Milk 1998 UHT milk 250 B and 100 pull tab 2004 Current Volumes: UHT Milk 60,000 liters/day Pasteurized milk 6000 Kg /month Milk product development: Product development is done by Nurpur itself, BLITZ agency and sometimes Tetra Pak also provides some help with suggestions etc 12 Page 12 of17 Marketing NurPur Price: Determination of price: Prices are decided in comparison with the competitors or by the recommendations of Tetra Pak, BLITZ DDB or Dairy association. Nurpur UHT milk has almost the same prices according to the prices of the competitors products. The company has a price control department, so employee of such department daily make survey of market and check the prices of competitors products and report to their managers. Company these prices the manager make decision of setting the prices of the products. Now the prices of Nurpur UHT milk are: 250ml Pack 500ml Pack 1000ml Pack Rs: 15 Rs: 30 Rs: 54 The NurPur Flavored milk has the monopoly because no other company is providing flavored milk like Nurpur. So the company has the power to control its prices because there is no any strong competitor against this product. Price of Flavored milk is: 250ml Pack Rs: 22 Pricing approach: Nurpur uses cost-based approach. Survey research: Nurpur does not have direct contact with its end users. So it usually surveys the retailers and shopkeepers to know about people’s preferences, attitude and behavior in buying. They ask questions like “what category purchases Nurpur products?” 13 Page 13 of17 Marketing “Why do they prefer Nurpur milk over other milk?” “Are these people loyal to Nurpur products?” NurPur Factors Affecting the prices of milk: Social class Nurpur’s focus is on the upper classes i.e. A and A+ only but as the trends are changing and purchasing power of people is rising more and more people are now in a position to afford many of the stuff which was once considered to be only for the luxury lovers. Nurpur is now thinking about focusing on B and C classes as well. Groups Nurpur creates demand for its products by the push factor. Therefore groups play an important role in creating demand for its products. People see the influential using a particular Nurpur product they also start buying it. Family The main focus of nurpur is on families. Nurpur’s milk focuses on drinking. It involves children. Occupation Occupations of people buying Nurpur products affects Nurpur in a way that mostly white collar people and upper classes buy Nurpur products. If more people get high occupations there might be an increase in the demand for Nurpur products. Place/Distribution: 14 Page 14 of17 Marketing NurPur Marketing intermediaries Physical distribution Total number of Nurpur distributors is 130. But the main distributors in Lahore are 6, 2 in Karachi and 1 in Rawalpindi. Distributors in Lahore 1. National Marketing Lahore 2. A.S Marketing Lahore 3. Creative marketing 4. Blue moon marketing 5. Hakeem and Company 6. Paracha Enterprises Distributors in Karachi 1. Minhaj groups 2. Shah Enterprises Distributor in Rawalpindi 1. Pak Foods Ltd Market distribution targeting: After segmenting the major cities of the country Nurpur goes further and next targets the marketing these various segments. The major target market of Nurpur is A+ and A class. Due to the changing trends and circumstances, the purchasing power of people is growing rapidly. The Band C class has also started using dairy products of other brands which were once only thought to be used by the elite classes. It has now become a necessity for Nurpur to focus on B and C class as well if it wishes to capture market and increase its profits. 15 Page 15 of17 Marketing NurPur Undifferentiated marketing: Nurpur is practicing undifferentiated marketing because being a national level company it is not able to cater the needs of individuals. However it is considered the best in the segments it is serving. Micromarketing Local marketing Nurpur is doing local marketing by servicing in some cities and areas of the country. Target marketing strategy Nurpur does not have a formulized sort of target marketing strategy. Most of the work is done by brain storming. And idea comes into the mind of some manager, he discusses it with the chairman and it is approved or disapproved. According to the brand manager Mr. Umran the end users are never the only customers. The distributors, retailers, resellers etc are all customers. Thus Nurpur has a vast network of customers all over Pakistan. Furthermore these customers also include another group called “the contractors”. They purchase Nurpur products in bulk like PIA, five star hotels or hospitals etc. Retailers: In the same way it sells its products on fewer amounts to its retailers so that they are motivated and help in promoting Nurpur products. Furthermore if a retailer purchases 40 packs of Nurpur UHT milk it provides a few extra packs for free to the retailer Promotion: Nurpur does not have a separate marketing department which would help the company promote its products. However marketing takes place in collaboration with the sales department. When Nurpur launched its milk it had many advertisement banners and many employees were hired to do the advertisement in big stores. The distributors provide free packs of 1 liter milk pack to the retailers on purchase of 40 milk packs. In the same way Nurpur has reserved places in stores like HKB, AlFatah and Jalal sons. Furthermore it provides a few incentives to its retailers and customers in 16 Page 16 of17 Marketing NurPur Ramadan like it sells its products to retailers and customers on lower prices so that they may earn some profit. But retailers keep the packs to sale them later after Ramadan at normal rates. Nurpur did several activities in Royal Palm. Activities in such porch clubs help in the promotion of the products. All A+ and A class is there they see and observe the brands present there and later adopt them. To promote its products Nurpur is further planning road shows in future. Nurpur believes in word of mouth for the commercialization of its products. Being a national level company it cannot afford to spend lacks and lacks of rupees on advertisements only. However some billboards are seen in certain localities Advertisement through Media: Nurpur’s advertisements were shown on television for a month. This created a huge difference in capturing the market. A lot of consumers were attracted by the advertisements. However showing commercials on televisions is very expensive for Nurpur. Advertising for a month only cost Nurpur 65 lac rupees. Due to limited budget Nurpur cannot afford such huge amount on advertisements. Still Nurpur has managed to display billboards in several locations. 17 Page 17 of17