Olper’s is one of the leading product of Engro foods, which can be consider as the cash cow item for the company as per the BCG matrix of the company, because it brings much cash in the company rather than the consumption. Olper’s product category was mainly introduced in 2006 with its milk, as the flagship carrier of Engro Foods, and it became the leading processed UHT milk brand of the country. It has gain the leadership position in the industry with in the span of about 11 years, and with the dedication and consistency. It delivers the promised wholesome of nutrition to the consumers with the help of innovation, convenience and safety. The philosophy of the brand resonates well emotionally with mothers and family, who are consistently searching for the nutrition for their families or children. Olper’s also has cream, tarka and lite- low fat milk (Engro foods, 2018).
Olper’s is the fastest growing brand of Engro foods, which is possible because of the effective decision making, by analyzing the industry and demands. This could be possible by using the tools like Ansoff matrix, BCG matrix etc. The BCG matrix helps in evaluating the company’s strategic position, which helps in making the investment decisions. Here is the detailed BCG analysis of Olpers;
Cash Cows
Olper’s Milk is the cash cow item for the Engro food, because of its high market share in the country as compare to its growth rate. This means that the company has to invest less on the product and could be able to gain from it, as it is the prime generator of the revenue of the product category. It is necessary for Engro Foods to “milked” this product for maintaining position in the market, or else the product could turn into star item. There is a tough competition in the market, and for this, not only investment, but effective strategies are also very important (Bilal, 2012).
Stars
These are the items which have high market share and also high market growth rate. This means, they consume cash and generate enough revenue but not more than cash cows. They are not the core generator of the revenue. Due to high growth rate, they need investment for retaining the position, however, effective decisions can turn this category into cash cow for the company or else it would turn into question mark. Olper’s cream is consider as the star item of the Olper’s product category for Engro foods. As the product has high demand, and Engro tries to meet it. It ranks on the top among different cream brands in Pakistan (Khan, 2013).
Question Marks
This category focuses on the products which have high market growth rate but low level off market share. This shows that, the products in this category consumes more than they earn because of market growth level. Yet it needs heavy investment to turn into cash cow or star quadrant. Olper’s Lite Milk is consider as the question mark for the company, because it is a low fat milk, and not many people in Pakistan are diet conscious. However, the product has the potential to grow in terms of sales, which need heavy marketing campaigns and other approaches are needed to be implemented to reduce the burden of this category from the company (Engro food, 2018).
Dogs
These are the items which have the low market share and low market growth rate, and most of the time the product stay on the breakeven point. From the product category of Olper’s the Zafaran flavored milk is dog item, as many people in Pakistan do not like the taste of Zafaran, and prefer Pakola’s flavor milk over it (Khan, 2013).
References
Bilal, M. 2012. BCG matrix of Engro foods. [Online], Available at: https://www.slideshare.net/mutahirbilal47/bcg-matrix-of-engro-foods, [Accessed on: 8th September, 2018].
Engro Foods, 2018. Olper’s milk. [Online], Available at: http://www.engrofoods.com/dairy_olpers_milk.html, [Accessed on: 8th September, 2018].
Khan, M. 2013. Engro Foods. [Online], Available at: https://www.slideshare.net/muhammadassadfahimkhan/engro-foods-23059854, [Accessed on: 8th September, 2018]