Olfresh – The Fight for Market Share in Pakistan’s Beverage Industry
Asad Ullah Randhawa frowned at the supply chain reports on his desk. Despite Olfresh’s efforts, rising costs and seasonal swings threatened the business. Competing with giants like Coca-Cola wasn’t easy—was there a way for a small brand to fight back?
At a glance
Founded
2016
Country
Pakistan
Industry
Beverages
(carbonated drinks, juices, bottled water)
Abstract
Olfresh, a Pakistani beverage company, faces an uphill battle against global giants like Coca-Cola and Pepsi. Founded in 2016 as a family business, Olfresh initially adopted a toll-filling model to minimize investment risks before transitioning to in-house manufacturing one year later. This shift granted the company greater control over quality and production but introduced significant supply chain complexities, including rising raw material costs, seasonal demand fluctuations, and regulatory challenges.
Despite making inroads in rural markets by offering competitive pricing and fostering strong retailer relationships, Olfresh struggles to establish a foothold in urban areas, where brand loyalty to international players is deeply entrenched. Additionally, securing high-quality PET bottles and managing production inefficiencies have posed ongoing hurdles, impacting profitability.
The case study examines Olfresh’s supply chain transformation, market positioning strategies, and the trade-offs between cost efficiency and regulatory compliance. It presents critical decision points for the company to determine whether to refine Olfresh’s supply chain, expand into new product categories, or enhance brand differentiation to secure market share.
By exploring these strategic dilemmas, this case challenges students to evaluate the complexities of operating as a challenger brand in a highly competitive industry, offering insights into supply chain optimization, market segmentation, and sustainable growth strategies.
Cover Photo by Arshad Pooloo on Unsplash
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