Client Name

Friesland Campina Engro Pakistan Limited

Faculty Advisor

Mr. Syed Atif Murtaza Qaiser

SBS Thought Leadership Areas

Entrepreneurship and Innovation

SBS Thought Leadership Area Justification

Our Experiential Learning Project aligns strongly with the Entrepreneurship and Innovation thought leadership area by tackling the post-GST sales decline of Olper’s 375ml “Derh Pao” pouch through bold, consumer-centric and insight-led strategies. We employed an innovative mixed-methods research design, including a neuromarketing study using eye-tracking and facial coding to evaluate emotional engagement with the product’s TVC, and experiential product trials that revealed key pain points in packaging usability, such as leakage and lack of resealability. These insights informed entrepreneurial recommendations that we presented to our client. For Example a resealable pouch, redesigning the label to include culturally familiar Urdu text ("ڈیرھ پاؤ") for stronger emotional resonance, and launching the #DerhPaoChallenge—an influencer-driven digital campaign showcasing relatable use-cases like one-person breakfasts or travel. We also proposed tactical pricing under Rs. 100, bundle packs for trial, shelf placement optimization, and partial expiry credits for retailers—all aimed at re-establishing market fit. This project demonstrates entrepreneurial agility by reimagining product positioning and consumer engagement, and contributes to sustainable innovation by promoting safe milk consumption in line with SDGs 3 and 12.

Aligned SDGs

GOAL 12: Responsible Consumption and Production

Aligned SDGs Justification

Our project aligns with both SDG 3: Good Health and Well-being and SDG 12: Responsible Consumption and Production by addressing the critical need to shift Pakistani consumers from unsafe loose milk to hygienically packaged UHT milk. The revival strategy for Olper’s 375ml “Derh Pao” pouch directly supports SDG 3 by promoting healthier consumption habits and reducing exposure to adulterated or contaminated milk—a major health risk in urban households. For example, our consumer research revealed that while many are aware of the hygiene benefits of packaged milk, price sensitivity and poor pack usability discourage its adoption. To address this, we proposed actionable solutions such as resealable packaging to maintain hygiene after opening, and clearer value communication through culturally resonant Urdu labeling. These efforts simultaneously support SDG 12 by encouraging more sustainable and responsible consumption patterns—reducing milk wastage through better portion sizing, improving product visibility, and ensuring consumers purchase only what they need. On the production and retail side, our recommendations such as improved shelf placement, targeted retailer incentives, and bundle offerings help optimize inventory turnover and reduce expired stock, contributing to more efficient and sustainable supply chain practices. By tackling both consumption behavior and distribution inefficiencies, our project advances key aspects of health, hygiene, and sustainability in the packaged milk industry.

NDA

No

Abstract

This Experiential Learning Project (ELP), conducted in partnership with FrieslandCampina Engro Pakistan Limited (FCEPL), focuses on the sharp decline in market performance of Olper’s 375ml “Derh Pao” pouch. This SKU was initially introduced as a value-for-money alternative for small households and individuals shifting from loose milk, launched at a price point of Rs. 50. Following the imposition of a 25% General Sales Tax (GST) in June 2024, this SKU experienced a drastic reduction in sales, sparking urgent concerns about product-market fit, consumer relevance, and retailer adoption. The primary objectives of this project were to identify key pain points hindering product uptake, analyze post-GST shifts in consumer and retailer behavior, and propose a practical revival strategy grounded in robust market insights.

A mixed-methods research approach was employed, including 105+ consumer surveys, five focus group discussions, 121 short in-person interviews, retail audits across 50+ stores, distributor and sales force interviews, a neuromarketing experiment, and sales data analysis. This comprehensive methodology enabled a multi-stakeholder understanding of challenges associated with awareness, pricing, packaging usability, and shelf visibility.

Key findings revealed alarmingly low consumer awareness of the 375ml SKU, with only 11.4% of surveyed consumers having ever purchased it. The product suffers from a confusing value proposition, poor resale, and unclear use-cases. Retailers echoed concerns, labeling it a “slow mover” plagued by high spoilage risks and low profitability. Sales data confirmed the commercial impact of the GST, showing a 70%+ drop in both primary and secondary volumes post-implementation. Meanwhile, neuromarketing analysis showed moderate ad likability but limited emotional resonance—especially among women, who are key household decision-makers.

The implications of these findings are far-reaching. Without a targeted repositioning effort, the Derh Pao SKU risks obsolescence. However, opportunities exist to revitalize it through improved resealable packaging, culturally resonant branding, tactical pricing (e.g., bringing price under Rs. 100), and more intuitive marketing highlighting relatable use-cases (e.g., one-person meals, travel, desserts). Retailer incentives, enhanced shelf placement, and digital-first influencer campaigns are also recommended to drive awareness and trial.

This project contributes to broader industry understanding by highlighting the intersection of regulatory policy, consumer psychology, and retail dynamics in the packaged milk segment. It also aligns with UN SDGs 3 and 12 by promoting safer milk consumption and responsible packaging innovation. Strategically, the study underscores the importance of emotional branding, product usability, and value communication in navigating tax shocks and market resistance—offering FrieslandCampina a grounded roadmap to reinvigorate the 375ml SKU in Pakistan’s dynamic dairy landscape.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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