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Nestle Pakistan Brands Face Tough Competition

Entries may be a little edited for clarity or brevity. The views expressed do not necessarily reflect those of PakPositive.

By Afia Jamal

Nestle is having hard time in Pakistan. First it was Aquafina by Pepsi that snatched its market share of mineral water then it was Olper’s by Engro Foods siding the Nestle Milk Pak and becoming the market leader of the category.

And this time its also a launch by Engro Foods that is giving competition to Nestle.

Yes it is Olfrute launched recently by Engro Foods but will it really be able to take the market share of Nestle Fruita Vitals? Or it will have fate like Shezan and Freshers had ?

So far Olfrute hasn’t been a hit. Engro foods relied on the brand equity of Olper’s by naming it Olper’s Olfrute but I feel it’s confusing. Olper’s is a dairy thing and fruit category is totally different thus Olfrute can’t be leveraged on the brand equity Olper’s.

Moreover the taste is similar to Nestle Fruita Vitals. It has nothing unique to offer to consumers. The price level is also kept high. The television commercial shown is not good. The ad shows Nadia Jamil, a lady in her 30s acting like a young lass teenager which is actually so stupid.

The packaging also fails to attract the attention of consumers shopping around.

Nestle Fruita Vitals has certainly gotten active on right time. We see great merchandising at stores by them after the launch of Fruita Vitals and has gotten more active on television commercials, and billboards are seen all around.

Lets see who wins the battle this time. Will Nestle be left to be a follower or will it carry on being the leader?

Posted: July 15th, 2010
  • asim

    Well article is good but your personal view can’t make impact on Engro strategy. You only tried to present negative picture of Olper’s by discussing brand name and tv commercial, but in my opinion Engro strategy is good to promote new product with Olper’s name. This strategy can give them a success in Pakistani market because we have a different trend as compared to the developed market where people are conscious about product name.

    I am sure Engro learned alot from olwell which was failed to attract consumers so now this time what I believe they kept those in minds before launching it.

  • Usman Gulzari

    Engro Foods have master minds…. Their launch of Olpers and then exceeding the target figure of capturing 10% in first year manifested that how Engro Foods envision.

    I go with Engro… :)

  • maycatdecal

    I’m vietnamese very excited to be familiar with you and I like to learn many things from the you.

  • Arez

    It seems that the author is paid by Nestle, give some time to engro and then you will be in a better position to rank both the brands alright.

  • Karim Jofa

    Nestle’s agency needs to study Principles Of Marketing again. The product is good, but promotional aspects are just sad! Tehy banned people from posting negative or in real terms constructive feedback on their face book wall when their game had stopped working. Do these people not test things before taking them live and the banning of wall posts was just a dumb suggestion! I wonder if they know it was SOCIAL MEDIA that changed the face of Egypt and brought brands like Kenneth Cole and Groupon down!

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