Golf Flake Positioning and Repositioning

Consumer Behavior

Case Study

Team Members

• Amir Shaukat

• Col Usman

• Sadia javaid

• Shereen Nawab

• Zulfiqar Awan

Why PTC?

• Interesting product

• Hidden marketing

• Challenges

Breakdown

• Gold Flake positioning & repositioning• Tobacco Industry of Pakistan• Pakistan Tobacco Company (PTC)• PTC Consumers• Industry players• Branding structure• Comparison of God Flake & Morven Gold• Action strategies• Future

GF Positioning & Repositioning

• The context– Rashid Khan, Brand Manager – Increase in market share from 15.3% to

17.1%– Targets set and gaps left– GF vs. MG– Brand re-launch– Further challenges

Tobacco Industry in Pakistan

• Dependable source of government income, 27.5 billion rupees, 4.4% of GDP

• Largest yield of crop• Employs 1 million peopleBUT

Ill effects of smokingImpact on health90% lung cancer attributed to smokingShift from west to developing countries1/3 men smokers4% women smokers

Pakistan Tobacco Company (PTC)

• Subsidiary of British American Tobacco Company (BAT)

• The first multinational company

• From a single factory to a company involved in every aspect of cigarette production

• Efforts in the development of the country– Modern agriculture– Industrial practices

…

• Investment in people, brands, technology, innovation and communities– Environment, Health & Safety standards– Industrial Relations practices– Highly values human resource

• Largest revenue generator– 2000, Rs. 10 billion in taxes

Consumers• Soft Taste Amateur

– Consume out of fashion– Mild taste– Use premium brands

• Enthusiastic Junkie– Caffeine addicts– Loyal breed– Biggest segment

• Robotic Workers– Low income group– Price conscious– Not loyal

• ASU30• MSAA30

Pakistani Tobacco Industry Players

• Pakistan Tobacco Company (PTC)– Industry leader with 46.8% share

• Lakson Tobacco Company (LTC)– 36.3% share

• Others – Includes Khyber Tobacco Company and

Mardan Walas– 5.9 % share

• Smuggled tobacco– 12%share

Industry Share Division

Industry Share division

36.3%

5.9% 12.0%

45.8%

PTC

LTC

Others

Smuggled

Brand Architecture

• Premium Brands– Benson & Hedges: PTC launched Benson &

Hedges in Pakistan in March 2003. It is made with the finest hand picked golden Virginia tobacco from across three continents.

– Gold Leaf: The story of John Player Gold Leaf starts from the story of its founder, John Player. John Player Gold Leaf has an identity entrenched in sailing and maritime adventure

Cont.

• Medium category Brands– Capstan: has a rich heritage, originating in

Britain in the 19th century – Gold Flake: Launched in 1982, in a 'soft cup'

packaging, the brand took off when it was repositioned in the value for money segment

– Will King: takes its name from the heritage of one of the origional Imperial Tobacco Company families: the Wills Brothers of London.  

Cont.

• Lower Category Brand– Embassy: the third leading volume brand in

Pakistan, is most popular in the Punjab where it enjoys a leading position due to its equity and loyalty.

Gold Flake

• PTC’s highest volume producing brand

• PTC’s highest revenue generator

• Country’s second highest selling brand

• PTC’s aim was to bring Gold Flake from the second highest selling brand to the highest selling brand of the country.

Comparison- Gold Flake Vs Morven Gold

• Value for money equation better for Morven Gold.

Cont.

• Perception of product quality and packaging for Morven Gold

• Trail was an exercise in futility.

• Limited edition packs require research and monitoring.

• Large number of products sizes offered.

• Appeal.

Action strategies

Gold flake Vs

Morven gold

Action strategies

• Brand Vision

• Brand Plan

• Key Objectives

Key Objectives

• Pack & product improvements

• Brand Image

• ASU 30 share in brand

• Distribution

Brand Image

• Masculine

• Young Adult

• High Quality

• Modern

Strategies for positioning

• physical parameters of pack and product

• creative use of media

• phase out of 4 of the 6 Gold Flake variants

• research activities focused on ASU 30 preferences

Advertising

• Nation-wide Cinema Network

• the national dailies

• Containers with big screens and sound system roamed around in the rural area

Product

• Gold Flake Supreme

• series of testing

• waste material costs minimized

• number of suppliers

Price

• inflation

• price increases by competitors

• selling price at retail level

Problems in the way

• Promotion restriction in case of cigarettes

• International Marketing Standards

• PTC does not understate profits in its financial reporting

Research

• Post launch feedback channel were

establish

– watch the product’s performance after launch

– acceptance among target consumers

– monitor effectiveness of the marketing

activities

– identify gaps that the team had left.

Future

• Khan & his team are planning to sustain the growth which they have achieved during past 11 months. He is counting on the strength & weaknesses of its strategies and identified timely availability & employee motivation is the most crucial thing to improve in such a highly regularized industry

Gold Flake’s New Packaging

Gold Flake Off Take Share

CONSUMER EXPENDITURE TREND: FOOD, BEVERAGES & TOBACCO (US$)

Major Competitors’ Market Shares In 2004

Industry Share division

36.3%

5.9% 12.0%

45.8%

PTC

LTC

Others

Smuggled

Adult Smoking Rate

Target Ratings For Different Attributes

Percentage Share Of Gold Flake & Morven

Gold In The Age Segment U-30

Brand Portfolio• Benson & Hedges: In 1873, Richard Benson & William Hedges started a partnership in

London. From the very start, the idea was to make Benson & Hedges a style statement, which is why the business started from London’s fashionable West End.

• PTC launched Benson & Hedges in Pakistan in March 2003. Made with the finest hand picked golden Virginia tobacco from across three continents, the brand is packed with perfection to seal its freshness.

• John Player Gold Leaf: With a distinct lifebuoy and sailor trademark, John Player Gold Leaf has an identity entrenched in sailing and maritime adventure. Thus staying true to John Player’s very first big brand - Player’s Gold Leaf Navy Cut cigarettes.

• Capstan: This brand has a rich heritage, originating in Britain in the 19th century. The brand was created under the auspices of W.D. & H.O. WILLS at Bristol and London.

•  • Gold Flake: Like many of PTC brands, Gold Flake boasts its origins at W.D. & H.O. WILLS

where it was a premium brand around the end of the 19th century.• Launched in 1982, in a 'soft cup' packaging, the brand took off when it was repositioned in the

value for money segment and later a 'hinge lid' variant was introduced in 2000.• WILLS: This Brand takes its name from the heritage of one of the original Imperial Tobacco

Company families: the Wills Brothers of London.   •  • Embassy: The third leading volume brand in Pakistan is most popular in the Punjab where it

enjoys a leading position due to its equity and loyalty.

Distribution Of Gold Flake

Revenue Distribution of PTC

Revenue Distribution of PTC in %age

Governmental Regulations

Marketing & Distribution Expenses

Aims & Objectives

Organizational Structure

International Tobacco Products

Marketing Standards

Analysis

Main Issues

• How to position the Gold Flake against

the Movern Gold

• What promotional mix should be used

under the tight governmental restrictions?

Contt.

• What distribution channels should be used to

make Gold Flake available?

• How to sustain the growth of Gold Flake

• How to motivate the internal Consumers

Tools Used

• Industry Analysis– SWOT Analysis– PEST Analysis– Porter’s Diamond Analysis

• Ansoff Matrix• Reference Group Influence matrix• Market Analysis

– Issues in Pakistani tobacco industry:– Marketing restrictions:

• Communication Strategy• Strategic Branding• GOLD FLAKE Positioning & Repositioiing

– Perceptual Maps– Positioning Statements– Personality Statements

Contt..

• Customer analysis– Segmentation– AIOD Analysis

• Price Analysis• Competitor analysis

– BCG Analysis

• Distribution channels:• The 7s Mckinsey Analysis

Alternatives

• Conventional versus unconventional

promotion mix

• Aggressive strategy versus flanking

strategy for gold flake

• IT facilitator distribution versus whole sale

distribution

Recommendations

• Corporate Social responsibility (CSR) and Public relationship (PR) programs– Minimizing the use and pollution of water– Waste recycling plans

• IT as a supply chain facilitator

• Intrinsic & Extrinsic rewards for internal consumers

Bibliography

• Marketing research manager, Mr. Khurram Javed

• Kotler, P. and Armstrong, G. (2006) Principles of Marketing. 11th Edition: Prentice-Hall, Inc., New Jersey.

• Pakistan Tobacco Company Pakistan, Health Program,http:/www.ptc.com.pk/oneweb/sites/pak_62vkzb.nsf

• Lakson tobacco company, Company Introduction, http://www.lakson.com.pk

Thank You