A New Packaged Milk Brand Flows into Pakistan

A New Packaged Milk Brand Flows Into Pakistan

By: Umair Naeem (Editor CIO Pakistan)

When Engro Foods launched Olpers Packaged milk in 2006, many in Pakistan's food and beverage industry thought the brand would flounder and ultimately fail, being unable to challenge established category leaders. The current results however tell, a branding story that underdog brands across the globe should hear.

Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the dairy market in the world's fourth largest milk producing country for nearly two decades--without any real sustained competition. Engro Foods, in contrast, had only recently been established by Engro--a traditional giant in Pakistan's chemical and fertilizer (yes, chemical and fertilizer) industry.

Branding experts could not imagine how Olper's could distance itself from its parent company's incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end of 2006, sales for Olper's Milk had reached Rs.1 billion (approximately US$ 15 million) and in 2008, the brand has a market share of close to 22 percent--second only to Milk Pak (estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the multi-billion rupee packaged milk category meant business.

The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural areas across Punjab, processing the milk through UHT (Ultra-High Temperature Processing) treatment, and selling it to consumers in uniquely colored triangular and rectangular packs designed to prolong the milk's quality. Milk Pak's "Milk Packs" were very well-received and the brand soon became synonymous with quality milk. Its first real competition came in the form of Haleeb, which introduced distinctively blue tetra packs to the market in 1986.

Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's marketplace. By 2006, the dairy milk category was growing at 20 percent annually, and Milk Pak and Haleeb were well-entrenched brands with distinctive colors and brand promises of providing high quality, natural and healthy milk. Milk Pak was identified by its green and white packaging--the colors of the country--and offered a brand backed with the strong equity of Nestle, coupled with its own traditional heritage. Haleeb was recognized as the blue brand, and professed to have the "naturally thickest" milk. With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely impervious to newcomers.

Olper's, however, stepped into the foray by launching a massive campaign that started off with an introductory slice-of-life television commercial featuring some of the biggest stars in Pakistan. Billboards went up at key locations in the major cities, and soon the brand had become a voice above the media clutter--a voice that differentiated Olper's brand from the others.

Rafey Nisar Zuberi, the marketing manager for Engro Foods, says, "From the onset, we wanted to introduce a true paradigm, bringing the dairy brand to the fore." The name itself made it sound like a foreign brand, giving the perception of quality, and was unlike anything previously experienced by Pakistani consumers. Rafey continues, "We wanted consumers to consider Olper's as a contemporary and modern brand, and all of our communication and brand attributes were geared toward ensuring that end."

To a large extent, they were successful. "It was certainly a campaign with its own unique identity," says Farah Jamaluddin, a media professional. "All of their communication was aesthetically on the mark and had a sense of synergy about it," she explains.

Olper's went with red as its color--a color far removed from the greens and blues that had become synonymous with packaged milk. "Picking red as the brand color was by far an inspired choice," says Zara Shaheen, an Olper's customer. "It created a whole new perceptual niche for Olper's," she adds. The color also helped to enhance the in-store visibility and presence for Olper's packaged milk, and the brand was instantly disassociated from its competition.

The brand also worked to ensure it established an image of being a healthy and natural product. Its optimistic and vibrant tag line--"Good Morning Life"--along with the unique red color, became the soul of the Olper's brand identity across various media outlets. Rafey explains the choices behind promoting the brand attributes, "We are big believers in the primary tenet of marketing: getting to know your consumers through research." He continues, "For Olper's, everything from the color and the packaging, to the recipe and the name, was thoroughly consumer tested."

The campaign highlighted and expanded upon the various occasions in which milk could, and should, be enjoyed--and kept driving home that message through its various promotions. Olper's became the "All Purpose Milk" and could be consumed with breakfast or blended with tea (arguably the most popular beverage for the masses in Pakistan), and appreciated by all members of the family. Engro Foods utilized a dynamic campaign, and during Ramazan (the Muslim month of fasting), molded its message to talk about the "All Purpose" nature of their brand during both Iftaar (breaking of the fast at dusk) and Sehree (pre-dawn food before the fast). "We are aiming to own the religious month and our special edition packaging, Ramazan relevant ATL (Above The Line--television, radio, etc.) and tailor-made iftaar activations, are aimed at building the necessary association we want in consumers' minds," Rafey points out.

Other avenues of BTL (Below The Line--brochures, flyers, etc.) have also contributed to the brand's success. The World of Olper's, for example, involves reaching out to the different locations in various cities and having