BM Olper's Bread

March 20, 2018 | Author: Valentine Fernandes | Category: Breads, Sandwich, Retail, Hamburgers, Brand


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Brand Launch (extension) Maham Shariq (8610) Faizan Ali (8723) Rafay Usman (9365) Tanvir Aslam (7547) Ahsan Ali Shaikh (8855) Executive Summary • Olper’s is a highly established brand in the milk industry and has a very rich heritage and equity • The main aim of this launch plan is to dominate the bread industry because the brands which are already operating in the industry are neither growing nor providing any benefits to the consumers • All of the brands in this industry are providing almost similar kind of products to the consumers • This launch plan has been made after extensive research, competitor analysis and consumer connect processes to browse the behavior of consumers and competitors • The vision of the brand is very clear from the start and that is to dominate the bread industry and sustain the brand through continuous innovation and quality offers • A full-fledged trade marketing plan has been made which includes the major decisions regarding the distribution and availability of the product The advertising would be very intense in order to grow aggressively • The main focus is to work aggressively like the team did for Olper’s Milk and Omore • All the aspects of the brand launch have been covered so that the brand become successful not only in the short-term but also sustain its growth in the long-run .• A complete 360-degree communication plan has been made to create the awareness and communicate the positioning of the brand. the Company has established state-of-the-art processing units in Sukkur and Sahiwal. along with an ice cream production facility in Sahiwal. Using dairy as a stepping stone to enter into the food business. intends to aggressively grow the business in this market. to which our customers testify.• Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Olwell. Engro Foods now plans to venture beyond the dairy sector. with a subsidiary Engro Foods USA. LLC. Tarang. With the vision of Elevating Consumer Delight Worldwide. The new organization. Company’s signifcant focus will be towards the global operations in the years to come. With an acquisition of Al Safa – a fast growing and established Halal meat brand – Engro Foods is now venturing into North American market starting from Halal Foods category. To support these brands and their highest standards of quality. • • • • . Engro Foods has invested heavily in milk processing and milk collection infrastructure. After the success of our dairy products. Top quality brands like Olper’s. 2011 will also see the beginning of sales from its own rice processing plant. Omore and Owsum have been successfully launched under the helm of Company’s dairy products. Engro Foods Canada Ltd. • Engro foods top brands are Olpers. Omore and Owsum and they all belong to its diary product line. • Other than these diary products. . Olwell. Engro has not given much attention to other FMCG products. With the launch of ‘Olper’s Bread’ Engro Foods will enter a new category with an established brand name. Tarang. . The products included in the bread category involves: • • • • • • • White Bread Sandwich Slices Milk Bread Burger Buns Bread Rolls Garlic Bread Fruit Bun . Although the quality.Category Profile • Bread is one of those products which are bought and consumed on daily basis. It is consumed in a such a quantity that it is a part of an average individual’s daily diet. taste and prices of bread products vary a lot on the basis of availability and competition yet it is fairly affordable all over. White Bread It is the simplest form of all bread products and among all it is the one which is most consumed. butter or else. In Pakistan simple bread is mostly consumed in the form of Packaged Slices of different brands or even if a local bakery is producing it by itself then it is also consumed at a good consumption rate as the middle class people are more concerned about less price of FMCG products and a local bakery comparatively sells its own made FMCG products at a lower rate. The most common size of bread which is mostly consumed in Pakistani Sliced Bread market is approximately of 400grams. . It is mostly consumed during the breakfast time along with egg. So this type of bread is restricted to cities only. People do care much about their regular routine meals and going out with family in those rural areas is far away from ones thoughts. Where as an average house hold uses white bread as its substitute. In Pakistan most of the population accounts for the rural areas where fast food does not have any importance. because Sandwich requires a different kind of bread design and taste. .Sandwich Slices Sandwich slices are also made up of flour as the other bread products are made up of but the main purpose that it serves is the sole use of it in sandwiches. It is mostly consumed by the fast food restaurants. Secondly due to agriculture and lack of industrialization there is not any concept of light Supper meal during work. Due to less rate of consumption this bread is not even produced on large scale as there is a threat of great loss if it is not sold on time. This type of bread is not consumed much as it has the issue of getting dry and spoiled. Milk and butter are added in it to make the bread healthier. According to a research made a couple of years back the retailers are paid only for the units of bread they sale and rest are returned. And among those returned having a loss of 30 to 35% is normal .Milk Bread This type of bread contains some amount of milk in it and sometimes also some amount of butter. Like sandwich slices. There is a clear cut difference in Burger Bun and Sandwich Slices which is that a Burger Bun can not be substituted by normal 400 grams bread where as Sandwich can be made with it. .Burger Bun Burger Buns have a different structure with round shape. They serve the purpose of making burgers. These Burger Buns sometimes are not sold for 2 to 3 weeks and the retailer has to bear the loss specially in rural areas. The reason is again less concentration over fast food in rural areas. Burger Buns are also mostly consumed by the restaurants in large quantities. Even then the sales of Burger Buns is not as desired. It is commonly considered a side dish.Bread Roll Although Bread rolls are not offered by all the brands of Bread yet it holds a good importance when it comes to demand to these Bread Rolls. they are cut transversely with fillings placed between the two halves. They are almost always served with Chicken Items in fast food restaurants and are mostly consumed in this regard. A bread roll is a piece of bread which usually small and round. Bread rolls are often used in the same way as sandwiches are. And they are also mostly consumed by fast food restaurants. . It is spread with Garlic butter or cheese. They are mostly consumed along with tea in Pakistani culture. .Fruit Bun Fruit buns are a typed of baked bread roll. fruit peel. The fruit pieces are added into normal bread in order to give it a sweet taste. spices and sometimes nuts. muffin or loaf made with fruit. In Pakistan Garlic bread is mostly used as a diet or as a starter before meals. It is French or Italian Bread recipe. Garlic Bread Garlic bread is a crisp form of bread. . Dawn Bread Dawn bread is one of the major players in Pakistani bread market. It has a market share of almost 35 to 40% Its other products include: •Fortified Bread •Milky Bread •Plain White Bread •Burger Buns •Fruity Buns •Hot Dog Buns . The positive aspect of it is its distribution which is fairly good throughout the country. Snacks and others it has been playing a prominent role in the market. With product categories like Frozen food. But in bread market it has a market share of 17% in Karachi city only. In its bread products following includes: •White BreadS •Milky Bread •Bran Bread •Fruit Bun •Tea Rusk •Sheer Mall •Burger Bun •Hot Dog Bun •Sandwich Bread (Special) • Cake Rusk .Bake Parlor Bake Parlor is a major player not only in the bread business but it has been success in reaching good brand extensions. Wonder It is also a major brand in the bread market but it has been focusing more on its business only in Karachi city. Its bread products include: •Wonder White bread •Wonder Wheat Bread •Wonder Hamburger Bread •Wonder Buns . Even then it has a market share of 12%. nutrition and wellness through its product and services offerings.Bunny’s Although Bunny’s is older than even Dawn yet its name comes after Dawn probably because of the distribution factor. Bunny’s Bakery products include: •Baqar Khani •Burger Bun •Cake Rusk •Deluxe Cake •Fruit Bun •Fruit Cake •Milk Bread •Naan •Plain Cake •Queen Cake •Rusk •Sandwich Bread •White Bread . They also try to anticipate consumer needs in order to provide convenience. The Company continuously has been focusing its efforts to better understand the changing eating habits and retailers needs. . Competitor Analysis Direct competition: Olpers bread will be in direct competition with the following branded and non branded breads • • Dawn bread: the market leader Wonder bread • • • • • • Bake parlor Breadies Sunshine All bakery breads Indirect competition: All breakfast items – branded frozen prathas. rusks Snacks for kids – usually kids eat snacks or bread in the evening with milk . home made parathas. 20 2. 32 3. 67 Brown bread 1. 20 2. 32 3. 32 3. RS 45 white breads White bread White bread 1. 20 2. RS 45 Fortified bread 1. 67 Plain white bread 1.Product & price Dawn Bread Wonder bread Sunshine bread Bake parlor Bran bread 1. 67 wheat breads Grains bread ( walnut etc) Flavored bread ( choc etc) Milky bread . they don’t cover every retailer instead their product mostly available on super stores or famous shops of every particular area or region. Bake parlor do run some tv ads which shows their interest in ATL .Place & promotions  Dawn bread • • • Dawn bread has a very powerful distribution chanel and they cover the whole Pakistan ranging from peshawar to karachi The supplies are done 2 times on daily basis to retailers on demand basis As far as the promotions are concerned Dawn bread depends mostly on BTL activities. ATL activities are also done but on a very narrow scale Like an ad on 25year celebration or a billboard communicating the positioning  Bake parlor • • Bake parlor distribution is not as strong as dawn bread. Positioning • Dawn bread Eat healthy, live healthy Dawn bread focuses on building a bond between the brand and the consumers health, providing the freshness for the life. • Sunshine bread Enriched with softness, no trans fat Sunshine has positioned itself as a bread which provides the consumers the satisfaction of a completely healthier diet Positioning • Wonder bread Bring back your memories and helps you make new ones • Bake parlor Tasty and healthy bread which provides the energy to perform the routine duties Strengths • high quality bread • stays fresh for a longer period of time • olpers is already an established brand name Opportunities • there is not enough communication been done by the leading brands; hence providing the opportunity to create excitement around the brand and make the positioning of the brand Weakness • Engro has never made anything in bakery products Threats • competitors performances and their solid market shares i.e dawn, bake parlor, wonder . capture the market.” . sustain a dominant share while pleasing customers with great taste. a national food industry giant. continuous innovation.” • Olper’s Bread Brand Vision: “ To penetrate the bread category.• Engro Foods Vision: “Aims at transforming the company within the next five years into first. quality and a healthy solution for those who are looking to fit more nutrition into their overall diet. then into a regional force and finally into a global player. However. . Previously. as a result of the increased presence of females in the workplace. to the extent that it is usually used as a substitute for a fork or spoon while eating. many no longer have the time required to do this and instead serve store-bought bread with meals. women tended to make bread at home. instead of baking chapattis (traditional Pakistani bread made of flour and water) consumers now tend to buy readymade bread. but. Key Market Trends:  TRENDS Bread is a central component of everyday nutrition in Pakistan. . Outside artisanal products. Campden & Chorleywood Food Research Association Group accounted for a leading 6% share of retail value sales. The share of sales accounted for by artisanal products saw a two percentage point decline over the review period. Campden & Chorleywood saw the largest gain in retail value sales share of one percentage point in 2009. COMPETITIVE LANDSCAPE Artisanal products accounted for a 76% share of baked goods retail value sales in Pakistan in 2009. followed by Vita Pakistan Plants Ltd with a 5% sales share. Sales growth will be driven by the expansion of the country’s middle class. Increasing urbanisation dictates a faster pace of life. This impacts their increasing preference to dine outside which saves a lot of time as well as offering families the chance to relax and eat together. which will increasingly migrate away from homemade to storebought baked goods. thus leaving less time for meal preparation at home.  Trends With the growing industry and overall economy each year. due to the convenience which they offer. larger amounts of people are employed in professional careers. . PROSPECTS Both retail volume and value sales are expected to see CAGRs of 7% over the forecast period. particularly when young families live separately from their parents.  Competitive Landscape The foodservice channel remains underdeveloped in Pakistan. they sometimes need to move to cities for educational or work purposes. thus making them more responsible for their own meals: impulse snacking is therefore driven by this trend. Generally. However. with the economy boost and increasing urbanisation. the target customers for foodservice are comprised of the highest earners so their quality of life is far beyond the expenses of dining daily at foodservice outlets. this has changed somewhat and consumers with higher incomes prefer quality and hygienic food.  Trends Despite the changing lifestyles of young consumers. Traditionally. Prospects Foodservice will see ongoing growth as the economic slowdown will not change consumers’ convenience and time-saving trends significantly. Pakistanis are used to seeing a great amount of snacks being sold on streets and are used to snacking on their way to work. thus packaged snacks are becoming more popular. However. they continued to live with their families and therefore tended to be looked after with regards to nutrition. . with Olper’s White bread as the core brand and subsequently expanding within the market.e Dawn bread (55% market share) Keep an increasing trend in the market share 35% to 40% by the end of 5 years • Improve perceived quality among target consumers • Communicate Olper’s Bread differentiating factors extensively • To extend Olper’s Bread category with new variants. . Domain: The brand will compete for growth in the bread market only.  • • • Objective: Role: Grow aggressively Challenge the major player i. . health-concerned consumers but the alternative bread types can be tasteless and dry. Olper’s Bread . Need: Most white breads are not preferred by diet-conscious. a new bread with the taste and soft texture of white bread but with the fibre of 100% whole wheat bread will meet the needs of these people. Consumer: Those consumers who are conscious and concerned about the nutrition they take-in. Positioning . ROOT STRENGTH Olper’s Bread root strength will be a more nutritional. . competing with artisanal products as well. healthy & fresh bread. However Olper’s Bread will have few major competitors: • Dawn Bread: Currently the market leader with a 55% market share.1. due to Large Distribution Network providing Nation-wide coverage and effective on time delivery and round the clock customer service. Competitive Environment: Olper’s Bread will operate in the baked goods retail environment. 2. and only supplies bread to milk shops and local bakery stores. The former is not considered a threat by dawn bread because it only concentrates on a specific niche of the market. the positioning revolves around a healthy loaf of bread to perform routine duties. Bake Parlor roughly has a 29% share of the market.• Bake Parlor: Will be the second big competitor that Olper’s bread will have to face. Controls 4% of the market share . • Wonder Bread: is a very small competitor with 12% market share • VITA Bread: which competes at regional level with DAWN. 4. . 5. Consumer Insight: Consumers want a bread that is tasty. Target Market: Consumers who are conscious about their health and want to add more nutritional value in their diet. a wholesome bread for a wholesome family –providing rich nutritions to live and stay healthy. Benefits: Olper’s bread. Nutritional and fresh at the same time but does not compromise on quality and is readily available in their locality.3. Belief. fitness concerned people and children because of its better taste. • Personality: Olper’s Bread is a wholesome bread that nurtures the whole family to lead healthy lives. Values. Olper’s Bread’s personality is based on being a ‘cool’ breakfast component as most teenagers skip on breakfast and a personality that will appeal to them and will use communication that will be able to reach them and encourage including Olper’s Bread in their breakfast consideration. Personality: • Values: We believe in consistently providing solutions for our consumers to lead healthy lives. diabetic people.6. from providing a nutritional packed breakfast to a healthy snack whenever and wherever they want. . It appeals to mothers. health conscious people. • Olper’s Bread while still being ‘cool’ will also will be ‘fun’ to include kids and excite them to have an Olper’s Breakfast. to perform better in their daily lives backed by pure natural power. celebrating life and enriching our lives with all the goodness around us. the ‘wholesome bread’ because the brand will be most strongly communicated to mothers as they are the majority decision maker in the buying process. to be fitter. We value health. to still be able to physically go on about performing their daily duties without assistance in their old age. 7.which will please their mothers. to see their grand children grow. leaner and in control of their lives – These are the same people that value what we value: A good solid life . Reasons To Believe: Olper’s Bread is a caring brand which cares about its consumers health and well being. Some people want to live strong and live long. Essence: • Olper’s Bread: – Enriching Life – Providing elements for Longevity of life . Discriminator: “The taste and soft texture of white bread but with the fibre of 100% whole wheat bread” 9.8. . Sunflower and Linseed • Price -White Bread : Rs 20 Rs 32 Rs 67 . -CSD -Makro.Farmer’s Grain : Rs 45 -Sunflower and Linseed : Rs 47 • Place: -A Class Stores -B Class retail stores -Kiryana Stores. Metro .Farmer’s Grain . Naheed’s. Hyper Star Imtiaz.White Bread ( with 100% fiber of whole wheat) .Marketing Mix • Product Bread: . • Packaging : Food-grade plastic packaging for bread which is environmentally-friendly Colored plastic bands will be used to display 'freshness‘ each color will depict the day it was manufactured. an added assurance of ‘freshness’ long with the expiry and manufactured date. Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Color Red Blue Green Purple Orange Pink Yellow . once market testing is achieved and we have gained some consumer insight. • Retailers that are able to sell all products. and Peshawar. it is to be distributed in major metropolises in Pakistan including Lahore. Rawalpindi. Multan. with fixed marketing return of 3% on expired or replaced product. • Distributor margin will be fixed at 8% and Retail Margin will be fixed at 10%. plus 5% discount for first six months of launch. retailer will receive 10% discount on next order. • Retailer will receive 2% cash discount for prime location. . and none are to be replaced. Product older then two days will be replaced. Quetta.• Olpers Bread will be initially launched in Karachi during its introductory phase. Hyderabad. Islamabad. Retailer Bonus Slab Bread Sales Per Week in Units Discount Slab Min Units Max Units Discount on sale Slab 1 Slab 2 Slab 3 50 100 200 99 199 - 1.00% 4.00% .00% 2. • Point of Purchase will include all retail outlets. • Retailers will receive small cash allowance on merchandising. shelf strips. . all Milk outlets. posters. The goal will be to capture the consumer at the store.• Merchandising will include promotional material such as stands. and have trader help in pushing product sales. and all bakery’s across Karachi. racks. sign boards. . Product Attributes o EMOTIONAL APPEALS: Family values. in-depth association of family members based on their choice of bread . healthy life. love & respect.• PRIMARY AIM To create awareness and communicate the differentiating factor extensively through intense advertising in order to grow aggressively and capture a decent market share • SECONDARY AIM To increase sales and generate profits for the brand • BIG IDEA ‘Healthy Happiness’ (To have a happy & healthy life) • PROPOSITION FOR THE ADS o USP: Quality ingredients that are pure & natural. Red Color. Range of Products. fluffy and soft bread o RATIONAL APPEALS: Packaging. AAJ. TV ONE. Akhbar-eJahan. MASALA TV. ATV. Home Express. Aman. Herald • RADIO . GEO Entertainment.FM 107. FM 100. Express. Mid-Week Magazine. ATV Plus • CABLE – GEO News. ARY Zouq. ARY. Nawa-i-waqt • MAGAZINES – Living Express. Indus Vision. PTV Home. Dawn. ABOVE THE LINE ACTIVITIES (ATL) • TVC • TERRESTRIAL – PTV. Express News • PRINT • NEWSPAPERS – Jung. ZAIQA. AAG. Sunday Magazine. Family. FM 101 (These are the main ones to achieve wider listenership) . HUM TV.  OUT OF HOME Billboards. Metro. Transit Advertising. Vehicle Graphics. CSD etc. 3D Boards. Standees at POS  BELOW THE LINE ACTIVITIES (BTL) • Point of Sale Kiosks • Stalls in the Food Exhibitions • Promotion in Supermarkets and Hyper marts (Makro. Imtiaz. Naheed. Pillar Wrappings.) • Mobile Vans in different towns (distributing free samples)  THROUGH THE LINE ACTIVITIES (TTL) • All the BTL activities will be shot properly and would be aired on different channels so that consumers can develop an association with the brand . . Product Performance • Olper’s has a very strong association with the consumers and has a very strong market for its milk • Olper’s enjoys a market share of about 50% • Consumer’s response towards the Olper’s bread is very positive and they like to purchase it instead of Dawn. Bake Parlor or Brady’s just because these brand have a lot of quality issues and consumers do not get fresh bread everyday . fluffy. tasty and healthy bread so that the consumers would get a fresh bread everyday and the bread would be more soft and fluffy as compared to the competitors . fresh.Olper’s bread is positioned as a quality. • PRESENCE – Olper’s is one of the leading brands in the milk industry and has no as such quality issues till now. When consumers would see the Olper’s bread on the shelves they could easily perceive the good quality of this bread because they all are familiar with the good quality of Olper’s milk • RELEVANCE – It is relevant to the needs of consumers because now a days everyone is conscious about the quality of product and consumers have a lot of issues in getting a fresh bread . soft and good quality bread which would be an advantage as compared to the other competitors .• PERFORMANCE – Olper’s has been delivering quality for past few years thus Olper’s bread would also be committed in delivering the quality bread to its consumers. it would provide a more healthy. • ADVANTAGE – Since Olper’s has a very strong relation with its customers. • BONDING – Consumers have a very strong emotional attachment with the Olper’s that could be seen during the surveys – A very high level of emotional appeal will be used in the advertising campaigns that would enhance the customer attachment with the brand – Providing a consistent good quality would also enhance the relationship . . 7% Yes No 93% . 4% 8% 9% 4% Dawn Bake Parlor Brady's 56% Wonder Sunshine Other 19% . 19% 10% Small Medium Large 71% . 12% 11% Freshness Well Baked Healthy 69% Tasty 8% . 15% 7% 6% 72% Longer period of Freshness Fungus Free Breads are usually not baked well Flavors can be added . 3% Yes No 97% . In other words we can say that it is positioned very well in the minds of the consumers 93% of the people said that they are the regular consumers of bread which means that we have a very broad market The key elements that people look for in the bread is ‘freshness’ and ‘quality’ which leverage the entry barriers for Olper’s because both the freshness and quality of the existing brands are very average   . Through our market research we found out that the expectations of people from Olper’s are very high because they have complete assurance of its taste and quality. people are willing to buy its bread instead of any other brand because of their quality association with it So the idea of launching a bread would not be profitable only in the short-term but also in the long-run   . People still look for ‘longer period of freshness’ for the bread and this insight can be catered by introducing a bread which remains extensively fresh Based on the existing image of Olper’s.
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