Decrease in Supply of Dalda Ghee

Executive Summary

This report comprises of the cause of decline in the sale of Olper`s Milk as many complaints were received quoting that milk was expired before the expiry date. This report analyses the causes and recommend certain solutions that Engro Foods should take to correct this situation. The report also clarifies that Olper`s Milk is 100% full of nutrition and have no harmful chemicals or bacteria which could cause diseases.

Introduction

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Engro foods launched its most famous product Olper`s milk in the year 2006. Since then this product is highly demanded all over Pakistan. Recently many complaints have been made from our most valuable customers that milk was expired before the expiry date. This report comprises of facts and findings about this cause of failure of Olper`s milk due to which our bar of good will is decreasing. After study of this report you will be able to answer the following questions:

• Who was responsible was this failure of Olper`s milk?
• What are the reasons behind this problem? What initiative should be taken to solve this problem?

Facts And Findings

For finding the real causes behind our customers complains I made certain surveys and researches to come to a conclusion. The research findings presented here falls in to four categories:

1. Testing Expired Milk Before Expiry Date
2. Survey Of Plant In Sukkur
3. Chain Of Distributors

Testing Expired Milk Before Expiry Date

I started my work by testing the expired milk before expiry date to know about the actual damage of the milk. The results showed that milk was actually expired and had been curdled and a bit smelly.

The expired milk contained a few percentage of urea in it which revealed that it was harmful and expired. Due to this reason our sales declined by a heavy margin in last month as compared to our competitors. This rapid decrease of sales came with no of complaints as well and I compared the complaints of last three months and found out that that in November complaints were increased by 90%. )

Survey Of Plant In Sukkur

After testing the expired milk I visited our milk processing plant in Sukkur and there I came to know that Olper`s milk is being processed in the correct way and no harmful chemicals are being added in it to make the expiry process earlier. The nutritional values of our milk are in accordance with those suggest by World`s Health Organization Here we can also see that expired milk did not contain any amount of iron in it as it was turned in to urea after expiring.

Chain Of Distributors

My final survey was of the chain of distributors we use to distribute our roduct in market we recently changed our distributors an 2012 and had signed a deal with JAVED BROS. chain of distributors. I disguised myself as a new trainee over there and spend a week analyzing the situation over there. I came to know that from past few months they are having a problem of overstocking of Olper`s Milk and as it’s a perishable good it has to be used otherwise the distributor will face loss.

The above chat is the ending inventory chart of distributors of Olper`s Milk. This shows that the Distributors are at fault and for their own profit are selling the expired milk by changing its expiry date.

Discussion/ Analysis

Olper`s Milk is the sign of good taste. Never in past six years such problem has occurred as Engro Foods works with honesty and show complete dedication towards their work. They have even created employment for women in their Sukkur plant and also give employment to women in Punjab to collect milk form dairy farms and deposit in Olper containers.

The Facts and Findings of my research also mention the fact that Engro Foods were not at fault. Distributors played a deadly game with us and tried to destroy our good will just off the sake of their own profit.

Conclusion And Recommendations

After completing all my research work and findings on this problem I came to a conclusion that the distributors of Olper`s milk were at fault, they played with our trust and good will. They removed the original expiry date form the tetra pack container of Olpers milk and printed a new expiry date just to avoid the consequences of over stocking of inventory. Olper`s milk is full of nutrition than any other tetra pack milk. It consists of some good nutritional fats that give it a rich flavor and taste.

According to my survey of plant and dairy farm no harmful chemical of bleaching agent is added in our milk it’s pure and healthy. Following are the recommendations I conclude on the basis of my finding:

• Engro foods should immediately break its contract chain of distributors as they misused our product for their benefit and directly blamed our brand for providing expired milk.
• Promotional deals should be launched for Olper`s milk for increasing its demand.
• New advertisements should be on aired to promoting Olper`s milk and for gaining back the trust of our customers
• should be sued and compensation should be demanded.

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