NEW PRODUCT LAUNCH OF Knorr “RASAKAREE”

A Product By A Presentation By

Launched 2012

August

Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2- 2013 Q3 - 2013 Q4 - 20130

2

4

6

8

10

12

14

16

18

Volume ( In MT )

Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2- 2013 Q3 - 2013 Q4 - 20130

5

10

15

20

25

Value ( In Mn )

BRAND PERFORMANCE ( RASAKARI )

Total taste enhancing category is 1 Bn

Seasoning powder category is 200 Mn

MARKET SHARE

19%

81% 2012

Rasakari Rasamusu

6.5%

92.5%

2013

Rasakari Rasamusu

PRODUCT COMPARISON

Knorr - Rasakari Maggie - Rasamusu

Description

Ingredients Blend of seasoning powder

Blend of seasoning powder

Price Rs . 7 Rs . 7

Grammage 5.5 g 5.0 g

Shelf Life time 6 Months 9 Months

Additional Nutrition's Vitamin A, Iron, Iodine Iron

Outlet Reach 40,000 + General Trade

28,000+ General Trade

2012 2013

40

60

30

10

Target Achivement

EXPECTANCY VS PERFORMANCE

Market Share ( Volume ) In MT

2012 2013

25

40

19

6.5

Expected Achived

Market Share ( % )

• Backed by a strong brand - Knorr • Strong distribution channel (110,000 + Outlets ) • Strong financial backing – Uniliver • International expert knowledge • Value for money

• Did not meet the local palate

• Poor communication Strategy

• One pack size & Less consumer choice in terms of flavors

• Wide space in this segment (seasoning powder is 20% of the taste enhancing category) • Growing life style• Its low price Vs Cubes in the similar function

• Health conscious on MSG contained products

• Strong competitor backed by Nestle

• “ Rasakaree” Connotes “ Rasa Karaka”

NEED GAP

Total no of households in Sri Lanka = 5,251,125Total Market Size of Taste Enhancing = 1 Billion Total Market Size of Seasoning Powder = Rs. 200 Million

CONVENIENCE

QUICK TASTE ENHANCER

AFORDABLE PRICE

MORE NUTRITION’S

NEED

NEW PRODUCT DEVELOPMENT

• Need for an Instant Taste Enhancer

• Increase of USL wallet shareIDEA

GENERATION

CONCEPT DEVELOPMENT &

TESTING

• Concept Developed & Tested in India• R & D on new additions : Vitamin A

and Iodine

BUSINESS ANALYSIS

• Overall Market share expected 25% in 2012 & 40% in 2013

PRODUCTDEVELOPMENT

• The product development was done in India

IDEA SCREENING• Idea screening was

done in India

TESTDEVELOPMENT

• Consumer Sampling & Blind Tests were conducted in GT

COMMERCIALIZATION

• Product Launch and promotions were done targeting the GT

MARKET ANALYSIS – PORTERS 5 FORCE

BARRIERS TO ENTRY

BUYERS POW

ER

SUPPLIERS POWER

THREATS OF

SUBSTITUTES

RIVALRY

Health conscious consumers

Distribution Network

Brand image – Nestle

Low visibility in Shelf Space in GT

No “Shelf space” in Modern

Trade

This is not a necessity

Choice of the buyer play a major role

No brand loyalty

THREATS OF

SUBSITUTES

Ample suppliers

High availability of ingredients

Natural spices

Stock cubes are more popular

“Maggie Rasamusu“

Strong Customer base backed by Nestle

Top of the mind brand recall

HIGH LOW

HIGH

HIGH HIGH

ANSOFF MATRIX

EXISTING PRODUCT NEW PRODUCT

NEW

MAR

KET

EXIS

TIN

G M

ARKE

T

MARKET PENETRATION

MARKET DEVELOPMENT

DIVERSIFICATION

• Use of existing distribution channel

• Strong brand presence• Large marketing budget• Introduce with convenient

sachet packet• Additional Nutrition

MARKETING MIX & THE GROWTH STRATEGY

Rs.7.00 in par with the competitorAffordable to general trade consumers

Available in general trade40000+ outlets

Rural / Semi urban

Rasakari is a food taste enhancing seasonal powder

Additional grammage of 0.5 g & the Nutrition Vitamin A & Iodine have being the growth strategy

Heavy ATL & BTL SpendTeaser campaign - “ Kawda Game Rasakari “TV , Radio, Press Poster campaignsActivations

MARKETING STRATEGY : LAUNCH

Activations Poster

Door

Panel

Total budget- 65 Mn ( 1st Year ) ATL - 35 Mn BTL - 30 Mn

Door - to - Door awareness

programs & Town

Promotions

Activations at “ Pola “

Cooking demonstrations

Build up to the

10 mega events with

5000 + participants

REASONS FOR FAILURE

Rasakari connotes as an addictive to enhance the taste (rasakaraka yak) - Perceived as a substitute for “Ajina-moto”

Due to bad publicity by opinion makers and other

journals publicized on MSG

Shorter Shelf life time

Commercial was less memorable & was not appealing to the target segment

“Rasamusu” Top of the mind brand recall

Late entry to the market Not followed a structured NPD processin Sri Lanka

Initially manufacturing was outsourced & afterwards USL started manufacturing in-house ( 2013 – Q1 ) – Resulting a margin dilution

Demographics FemaleAge between 25 to 50

Geographic Sub-urban, Rural

Household Income Rs.15,000 +

Industry General Trade consumers

SEGMENTING

• Mothers looks to prepare a quick meal and concern about health benefits. • Also look forward for an appreciation from their loved once for her special dishes. • Nutrition deficiencies

TARGETING

POSITIONING Soci

al C

lass

(Hig

h)

Soci

al C

lass

(Low

)

High PriceLow Price

PROPOSED MARKETING STRATEGY

• Re brand : “Knorr Rasakari” as “Rasata Rasak” to mitigate the consumer perception on MSG addictive • Introduce different pack sizes and flavors to cater the broader consumer segment• Out source the manufacturing - To enhance margin • Enhanced the shelf life time with removal of iodine from the product

General Trade Modern Trade B2B

Name Rasata Rasak Rasata Rasak Rasata Rasak Jumbo

Variance Three: Fish & meat Vegetables Sambols

Four : Fish & meat Vegetables Sambols Salad

Four : Fish & meat Vegetables Sambols Salad

Pack size 5.5gms5.5gms x 10 pax in a box100 gms pack (refill)100 gms bottle

500 gms and 1 kg

Price Rs.7Rs.65 Box Rs.110 RefillRs.130 Bottle

Rs.540 ( 500gms )Rs.1,050 ( 1 Kg )

SEGMENTING AND TARGETING

General Trade Modern Trade B2B

Demographics

Geographic

Income

Female : Age 25 - 50 Female : Age 25 - 50 Chefs and cooks

Sub-urban, Rural Urban Urban, Sub-urban, Rural

> Rs.15,000 > Rs.15,000 Restaurants, Hotels, Pubs

PRE LAUNCHDescription Budget Time

Sponsor Key opinion makers to change consumer perception about MSG

Press / TV / RadioHousewife's associations (100 clubs)

TV - 5 MnPress - 2 MnRadio - 5 Mn

1st September – 31st November 2014

Teaser campaign 10 M 15th Sep 14

Launch15 M20 M

1st Oct 14Annual partnerships

Press, TV, RadioBranding at GT & MT

ATL / BTL

KEY PERFORMANCE INDICATORS

General Trade Modern Trade B2B

Induce sample( Vol - 1 MT)

Bundle offers(Ceylonta + Rasata RasakLaojee + Rasata Rasak)

Buddle offers (Marmite + Rasata Rasak, free sampling )

Free sampling

Increase frequency

12 months Bingo card scheme and receive 6 months of teaRaffle draws

12 months Bingo card scheme and receive 6 months of teaBonus points for loyalty card holders at Supermarkets

10% off on your second pack

Customer retention

Additional incentives on targets

Raffle drawsAdditional incentives on targets

Additional discounts on bulk quantity purchase

Objective Timeline

1St Oct To 14 Oct ‘14

On going( Continuous

Basis)

Availability Outlet Reach 60,000 700 500 1st October

Revenue Forecast

Q4 - 2014 - 30 Mn H1 - 2015 - 90 MnH2 - 2015 - 120 MnH1 - 2016 - 150 Mn

As per forecast

Q4 - 2014 - 7Mn H1 - 2015 - 18 MnH2 - 2015 - 26 MnH1 - 2016 - 35 Mn

Q4 - 2014 - 11Mn H1 - 2015 - 32 MnH2 - 2015 - 36 MnH1 - 2016 - 45 Mn

1St Jan To 31st Dec

2015

OBJECTIVE OF THE LAUNCH - QUALITATIVE

• My cooking is even more tastier with “Rasata Rasak” • Gives me a balanced meal with nutrition for my family• It saves me time• Everyday meal can be just as a special occasion

Consumer value

• Increased demand gives me an additional income• My store ambience is better with Rasata Rasak - Eg : AluFrame , Magic Stick , Category Branding etc .• Health conscious consumers are added to my clientele

Retailer value

Stakeholders value Sales representative / Dealers / Stockiest / USL

• Additional revenue • Increase USL share ( wallet Share / basket Share ) • Additional product to reach my budgets• Enhance brand value

CONCLUSIONWhen launching “Rasaraki” our client should have followed a structured NPD process catering the local market

Apart from General Trade , USL to focus on Modern Trade & Institutional sales to enhance the brand value proposition

The TV Commercial should be localized and emotionally appealing to the target segment

Product name should communicate the product offering clearly This will enable our client to sustain in business achieve wider market share

Appendix

Reality on MSG

Consumer Survey Sample

2013 Gazette on MSG