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Engro Olfrute, a failed product, relaunch marketing strategy along with marketing communications, concept and budget plan.
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ENGRO OLFRUTE MARKETING PLAN
Presented To: Ms. Maryam Wazirzada
Presented By:Aimen Shah
Aneel Ahmed KhanAyyaz TanveerHussain Iftikhar
M. A. Hanan RasoolMir Arooj HassanNatasha Hassan
Omair AnwarWaqas Azeem Bajwa
Company Introduction
• Subsidiary of Engro Corporation Ltd incorporated in 2005
• Major Brands• Olpers Milk, Tarang,
Omore and Olfrute
Engro Foods
• Launched in 2010
• Pure Nectar Juices
• 6 flavors• Failed Launch,
only 1% current market shareOlfrute
Olfrute
Flavors
Mango, Apple, Orange
Peach Guava, Grape
Competition
Direct• Nestle• Shezan• Minute Maid
Indirect
• Pepsi• Coca Cola• Other
Beverage Brands
Competition
Competitor Analysis
Nestle Fruita Vitals•Product: Pure
Nectars and diluted
•Price: Price skimming
•Placement: Every nook and cranny
•Promotion: Psychographic, Young Adults/couples
•SKU sizes: 200 ml and 1 liter packs
Shezan All Pure• Product: Pure Nectars• Price: Market follower, right behind
Nestle• Placement: Major retail outlets and
department stores• Promotion: Only at time of launch.
Cashing in on the strong brand equity and awareness
• SKU sizes: 200 ml and 1 liter packs
Minute Maid• Product: Synthetic pulp juices. Just
introduced new flavor• Price: Market skimming strategy• Placement: Available at most retail outlets,
large and small• Promotion: Aggressive brand activation at
launch, backed up by TVCs in summers• SKU sizes: 300 ml and 1 liter
Colas•Product: Pepsi
and Coke•Price: Market
penetration pricing
•Placement: Every nook and cranny
•Promotion: Aggressive year round promotion
•SKUs: 250 ml., 500 ml., 1 liter, 1.5 liters., 2.25 litres.
Olfrute
SWOT
Strengths• Parent company
support• Low financial
constraints• Effective, in place
distribution networks
• Engro foods has established a strong brand image
Weaknesses• Lack of effective
communication in their ads
• No well defined target market
• Olfrute has already failed
Opportunities• Growing market• People shifting from
soft drinks to more healthy drinks
• The “healthy’’ product market is expanding
Threats• Competition• Nestle’s strong
market influence as it is well placed
• Increasing number of substitutes
Marketing Objectives
• Replenish energy
• Quench thirst
• Taste
Consumer Objectives
• Become the most preferred fruit juice drink in Pakistan
• Consumer perception of best quality fruit drink
• Identify and implement unique and effective brand positioning
• Attain high brand loyalty• Be the best value for
money brand
Marketing Objectives • Capture 15%
market share within the first year of implementation of this marketing plan
• Increase market presence through proper utilization of Engro Foods distribution channels
Marketing Targets
“A juice which provides an instant surge in energy, which quenches thirst and has a pleasant taste from
the first sip to the last, resulting in an experience of a refreshing sensation for the consumer.”
USP
STPMarketing StrategyAction ProgramsMarketing Budget
Proposed Marketing Strategy
Segmentation, Targeting & Positioning
Segments Identified•Housewives
•Working Women
•Professionals / Executives
•Teens
Targeting•Teens•Maximize lifetime customer value•Bring about a change in mindset –
change the perception of fruit juices
Positioning•Lifestyle and psychographic•Young, active, health conscious,
adventurous teens•Focus on the functional features of
the product
AIDA Model Approach
Action = Sales
Desire
Interest
Awareness
Spread awareness about Olfrute and benefits of fruit
juices (energetic, healthy)Create interest
through teaser campaigns at re-launch +
brand activation Desire: Brand
Ambassadors which will appeal
the youth
Action Plan – Product Differentiation
New Flavors – Exotic variants like Passion fruit
Change in Packaging• New SKU of
330 ml• Introduce
bottles for 330 ml and 1 liter
Change in Packaging• Pack design
change for 200 ml juice packs (no straw, just rip and sip)
• Design change – half red (brand association with Olpers) and half fruit colors
Action Plan – Pricing Strategy
Price Skimming• High quality premium juice brand Match prices with
Nestle• We are competing on product differentiation and not on pricing
Action Plan - Placement
Engro Foods
• Robust distribution network in place
• High market presence and reach
Olfrute
• Utilize Engro’s established distribution network for retail stores
Teen Focused
• Schools, Colleges and Universities
• ‘Khokhas’ and tuc shops too
Action Plan – Promotion Strategy
Brand Activati
onATL BTL
Concerts and campus drives
Inter-University Battle of the Bands competition
Teaser Campaign for 15 days
Unveiling of Complete campaign
TVCs Radio
Trade and Retail promotions
Billboards Print
media
Promotions Strategy – 1st Quarter
Teaser Campaign for 15 days on
TVCs, Radio, Billboards and
Print Media
Unveiling of the main campaign and the brand ambassadors
Brand Activation Drive
Starts in popular schools and universities – 12 concerts in
12 months
Teaser Story line
• Old Jingle ‘Taazgi Jagaa Re’• Singing Whistle tune (unable to complete
the tune)• Guy’s feet walking in the park (Person not
shown)• Morning time• Rip and Sip
Teaser Ad 1
• Story continuations• Woman’s feet walking (Person not shown)• Also trying to complete a whistle tune• They meet and drink some thing (Rip and
Sip)• Jingle completed
Teaser Ad 2
Promotions Strategy – Quarter 2 & 3
Introduce the new flavors
Introduce Trade Promotions and retail incentives
Continued focus on campus drives and concerts
Maintain media presence on TV, Radio, Billboards and Print media
Promotions Strategy – Quarter 4
• Campus Concerts coming to an end
• Battle of the Bands – Inter university competition commences
Brand Activatio
n• Maintain media presence but
not as aggressive as before• Focus more on trade
promotions to encourage distributors to carry Olfrute and its variants
ATL and BTL
Media Planning
TVCs• Time Slots- 7
pm to 10 pm• Geo TV, Aag,
Play, 8XM, Hum TV, Oxygene, Geo Sports
Radio Commercials• Time Slots- 7
am to 9 am, 3 to 6 pm, 1pm to 2 am
BillBoards• Karachi,
Lahore, Islamabad, Rawalpindi, Faisalabad
Brand Activation - Concerts
Marketing Budget
Marketing Budget Breakup (PKR Mil)
TVCs 50% 216
Radio 15% 65
Print 10% 43
BillBoard 15% 65
Brand Activation 10% 43
Total (PKR Mil) 432
Sales Forecasting
Juice Market (Nectars and Still Drinks) stood at 128
million litres
Top Down Approach to forecast sales•Market growth at 13% CAGR in
2012•Expected beverage inflation is
estimated would be around 13% CAGR
•Olftrute Nutrina target market share of 15% in 2012
Quarterly Sales Projections
2011(A)
2012(Q1) 2012(Q2) 2012(Q3) 2012(Q4) 2012(E)
Juice Industry (JN & VASD) Million Liters
128
33
36
37
38
144
Market growth rate
13% 3% 5% 3% 1% 13%
Engro Market Share 5% 7% 10% 13% 15% 15%
Engro Juice Sales
6.38 2.33
3.56
4.81
5.67
16.37
Beverage Inflation 17% 3% 5% 3% 1% 13%
Price per litre (PKR Mil)
120.00
123.60
129.78
133.67 135.01
135.00
Engro Juice Sales (PKR Mil)
766.14
287.94
462.14
643.56
764.99
2,158.63
Income Statement Projection
Projected Income Statement (PKR Mil) Q1E (2012) Q2E(2012) Q3E(2012) Q4E(2012) (2012E) Juices Segment Sales 287.94 462.14 643.56 764.99 2,158.63
less: COGS (74% of sales) 213.07
341.98
476.23
566.10 1,597.39
Gross Profit
74.86 120.16
167.33
198.90 561.24
less: Marketing and Distribution Expenses(20%) 57.59
92.43
128.71
153.00 431.73
less: Administrative Expenses(2%)
5.76
9.24 12.87
15.30 43.17
EBITDA
11.52
18.49
25.74
30.60 86.35 less: Depreciation Expense+Amortization Expense
5.76
9.24
12.87
15.30 43.17
Profit Before Taxes (PBT)
5.76
9.24
12.87
15.30 43.17
less Tax (35%)
2.02
3.23
4.50
5.35 15.11
Net Income
3.74
6.01
8.37
9.94 28.06
THANK YOU