A New Packaged Milk Brand

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.