Imc Project- Jaouda


Published on

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Imc Project- Jaouda

  1. 1. Promotional Communication Midterm Project: IMC Project Prepared by Jihane Moussaoui Dalal Oubraim Instructor: Dr. M.Ibahrine Spring 2009
  2. 2. Introduction For our IMC project, we chose to perform our in-depth analysis on the Moroccan Cooperative COPAG Jaouda. Actually, we found that COPAG Jaouda is an interesting case to consider, first because the milk sector is of paramount importance in Morocco in that the consumption of Milk in Morocco stands between 55 to 60 million liters per month (Telquel, 2008). Second, COPAG Jaouda is penetrating heavily the Moroccan milk market, and it competes against a giant in the milk sector which is La Centrale Laitière (Group ONA). In this paper, we will analyze the marketing-communication program of Jaouda in light of the integrated marketing communication principles, criteria and strategies, especially the four fundamental decisions and the four implementation decisions. Before elaborating our analysis we shall first present an overview of the overall state of Jaouda, in terms of: the mission statement, current state in the Moroccan market, business goals, and SWOT analysis. Presentation of COPAG Jaouda Copag Jaouda was founded in May 1987, in Taroudant (Ait Yazza), by Mr. Mly Mohamed Loultiti in collaboration with 39 farmers (M. Loultiti, direct interview). The cooperative is taking in charge its products from the production, the transformation until the commercialization step. Also, it employs 14 000 farmers and 3300 people. The cooperative’s social capital is of 140 000 000dhs, its investments of 700 000 000 dhs, and its annual total revenue of 1.8 billions dhs (L’Economiste Magazine,2008). At the beginning, COPAG was only specialized in citrus production and exportation. COPAG’s dairy activity “Jaouda” started in 1993: its production per day has increased tremendously from 50 000 to 500 000 liters, to attain 700 000
  3. 3. liters today. COPAG’s success story is mainly due to its dairy activity “Jaouda” which represents 70% of the total revenue of the cooperative COPAG against only 30% for citrus. In our project we shall focus on COPAG’s dairy activity namely Jaouda (M. Loultiti, direct interview). Mission Statement According to Mr. Loultiti the top manager of COPAG Jaouda, the first aspect of the mission is to develop innovating and good-quality milk products that will enable the cooperative to meet the expectations of current and future consumers. The second characteristic of the mission is that through the actions of supply, supervision and training in close collaboration with national and international partners, COPAG seeks to improve productivity, profitability of its activities, and hence to ensure economic growth of the sectors of activities where it operates (M. Loultini, direct interview,2008). The third aspect of Jaouda’s mission statement is to ensure socio- economic development of the rural region of the Souss in the south of Morocco, and to ensure stable revenues for farmers. Such a development is related to the employment opportunities offered by the cooperative throughout the region. The business current state of Copag Jaouda: • Shift from being exonerated from taxes to being obliged to pay taxes • Total revenue: 1.8 billion dhs (L’économiste magazine, May 2008) • Market share: 20% (for Centrale Laitière: 70%) (L’économiste magazine, May 2008) • Dairy production: 500 to 700 Tons per day (L’économiste magazine, May 2008)
  4. 4. • Copag Jaouda’s distribution circuits: from Tiznit to Meknes. The north and east areas are being covered only starting 2008. • Working on establishing a new production unit in Larache (M. Loultiti, direct interview). • Main competitor: Centrale Laitière (ONA), Chergui , Yogo, and regional cooperatives The Business goals of Copag Jaouda: According to M. Loultiti the business goals of COPAG Jaouda are the following: • Reach a market share of 30% by the end of 2010 • Increase total revenue by 4% by 2010 • Reach a customer satisfaction rate of 80% by 2010 • Increase the total production • Launch new products: flan, crème dessert, different types of cheese… • Ensure the expansion and growth of the company: cover the whole Moroccan market and access the North African and African market. SWOT Analysis: The SWOT analysis will be conducted at different levels namely the organizational, individual, and process level: 1. Strengths at the Organizational Level • Related diversification of products (milk, yogurts, butter…) • Cooperative status: according to the law 24-83 cooperatives beneficiated from the exoneration of taxes namely IS and TVA until the year 2005.
  5. 5. • Copag Jaouda detains 20% of the marketshare (in only 15 years) (L’economiste, 2007). • Daily production: from 500 to 700 tones (L’economiste, 2007). • Copag Jaouda has started with a unit of production in Taroudant, and now it is working on establishing a new one in Larache (2000 cows so far) (L’economiste, 2007). • The high demand addressed to Jaouda Products pushed Marjane (Group ONA) to reinstitute jaouda’s products in its points of sale (M. Loultiti, direct interview). • Large distribution represents 10% of the total revenue of Jaouda. • Copag Jaouda has many distribution stores in the different cities of the Moroccan territory. • Jaouda’s success has been promoted by the traditional circuit: grocers shops that are mainly hold by “Soussi” people. There was certain solidarity between the vendors the drivers or distributors and COPAG Jaouda due to the shared origin and culture. • COPAG Jaouda is actively engaged in social responsibility: in July 2007: the firm has created a station for treating used water (M. Loultiti, direct interview). 2. Strengths at the Individual Level According to Mr. M. Loultini Jaouda has: • 14 000 farmers and 3300 direct employees • 3200 collaborators • COPAG Jaouda provides trainings to its employees.
  6. 6. • COPAG Jaouda has qualified engineers and competent workers especially in the technical department and laboratory. 3. Strengths at the Process Level • Good quality of raw material (good quality of milk, and cows). • Good machinery and equipment. • Copag Jaouda’s integrated activity: from the production, transformation until the distribution allows more flexibility of its processes. • Logistic: 360 trucks for distribution: trucks’ drivers call each others for free thanks to an intra network with meditel (M. Loultini, direct interview). • Respect of hygiene conditions: certified ISO 9000 • The factory is working 24/24 hours. • COPAG Jaouda has recently (March 2005) created a common farm of a capacity of 11 000 cows, and a new factory for cattle food (900 000 tonnes per year). 4. Weaknesses at the Organizational Level • Jouada’s products distribution was limited to the circuit Tiznit – Meknes until 2008. The north and east areas started being covered just lately.
  7. 7. • At the macro level Moroccan consumers are not aware and informed about Jaouda, and its products especially the northern and eastern regions. • Advertising and marketing is not very developed ( in contrast with Centrale Laitière) • The region of souss is not attracting too much investment in comparison with other regions: Casablanca, Rabat… • Because of the new taxation measures concerning the cooperative sector Copag Jaouda is no more exonerated from taxes and is obliged to pay an amount estimated of 110 million dhs taxes annualy. According to Mr Loultiti (direct interview, 2008), the loss due to this new measure is very important. It is estimated to 50 centimes per liter, and farmers have been taken off 20 centimes per liter. • Jaouda’s products are diversified but they are not offering: flans, crème dessert, different types of cheese 5. Weaknesses at the Individual Level • Recruitment is done mainly from the southern labour pool (region of souss) • Problem of qualification: it is too difficult to find qualified people. • Bottom line employees are not committed, not motivated. • Bottom line employees: high rate of stress and absenteeism. • Considerable turnover rate in the laboratory department. 6. Weaknesses at the Process Level
  8. 8. • Logistic: High transportation costs since they are located in Taroudant. • Machinery treatment capacity: previously the amount of collected milk was hugely superior to the treatment capacity • Production (or supply) is inferior to the demand. There is an amount of 10% to more than 20% of the demand that is not satisfied each year, especially during the summer and Ramadan when the demand is relatively high. 7. Opportunities at the Organizational Level • Opening of a production unit in Larache: easy access to resources (large area, good weather conditions, labor…) which allows on one hand the company to minimize its costs of production thanks to its strategic location and on the other hand to cover larger distribution areas (North & East of Morocco). • Establish partnerships / alliances with foreign brands like Yoplait. Especiallly that La Centrale Laitière encounters tensions with its French partner Danone because the visual identity of Danone is slightly visible on the packaging of the products • Covering larger distribution areas • Expand its products in the North African & African market. • Develop its organizational structure (expand its growth) 8. Opportunities at the Individual Level • Hire more skilled workers and also from foreign market pools. • Importing good and efficient machines
  9. 9. • Expand its stockage and treatment capacity 9. Opportunities at the Process Level • Improve the logistic. • Improve the research and development process • Improve the speed to market • Improve the marketing, innovation, advertisement … 10. Threats at the Organizational level • Competition: Copag jaouda’s main competitor La Centrale Laitière (Groupe ONA) detains 70% of the Moroccan marketshare and is the leader of milk industry in Morocco. Other competitors: Chergui, Yogo and regional cooperatives. • La centrale laitière is investing heavily in innovation, marketing, research & Development…. According to Mr Driss Traki La Centrale Laitière’s strategy consists of launching a new product each month. • Until 2005 l’ONA has forbidden jaouda’s products to be sold in Marjane (Group ONA). Marjane constitutes an important distribution channel in Morocco. • La Centrale Laitière has been exerting too much pressure on the government especially the finance ministry, denouncing the unfair competition: La Centrale laitière is obliged to pay taxes while its major competitor Jaouda is realizing huge benefits (without paying taxes) and gaining more and more market share. The exoneration from taxes has enhanced and facilitated the company’s success. In order not to
  10. 10. penalize the entire cooperative sector, the government decided to cancel the exoneration from taxes for cooperatives that have a revenue of more than 1 million dhs, and that have an industrial or semi industrial process. Consequently, Copag Jaouda has been obliged to pay taxes since 2005. 11. Threats at the Individual level • Being obliged to pay taxes has pushed copag jaouda to reduce its costs: reduce price of milk purchased from farmers. Reduce wages and the workforce as well • La Centrale Laitière is having more qualified and high skilled employees. 12. Threats at the Process level • Crisis of the milk sector • Milk sector is experiencing shortage and high increase of prices. (importation of cows, milk powder, cattle food… ). Actually, globally, the milk sector experiences a high increase of prices. This raise is experienced by the Moroccan milk sector as well, which moved from an average price of 20 000 DHM per ton in 2005, to more than 25 000 DHM in 2008 ( Telquel, 2008).
  11. 11. MARCOM Program Now that we have presented a snapshot of the situation of Copag Jaouda, we can shed more light on the MARCOM strategies and efforts of the company. Fundamental Decisions Targeting: Targeting specific market segments is a fundamental step to all Marcom programs. Indeed, it allows the company to deliver its messages and efforts in a precise and efficient way. Jaouda is targeting the local Moroccan market. The population representing the target market segment of Jaouda consists of common Moroccans having the following characteristics: - Different ages: children, adolescents, and adults. Yet, here we can say mainly children and young people, because at the cultural level in Morocco yogurt is more synonym to childhood and youth. - The majority of Moroccans is illiterate and lives in rural areas. - The majority of Moroccans earn a low income, which means a limited purchasing power. Due to the lack of studies and data in terms behaviorgraphic and psychographic dimensions, we decided to rely on our own observation and
  12. 12. experience during the past concerning goods of the same product category (milk products) for example yogurts of La Centrale Laitière. In this context, we can say that in general (talking about an important part of the population) Moroccans are having modest lifestyles that are determined mainly by their income, area of living and level of education. The most important factor that will determine Mroccans’ decision to buy or purchase a product is the price, and then comes the quality. Thus, we can conclude that Moroccan consumers demand simple, practical, and inexpensive products. Accordingly, Jaouda is offering simple types of yogurts (not sophisticated products such as crème dessert, or mousse au chocolat for example), of a good quality, with simple and very basic flavors (vanilla, strawberry, apricot, peach…), and with reasonable and competitive prices (they offer yogurts starting only one dirham). Here, we can say that Jaouda starts with the consumers (constituting its target market segment), and then elaborates its products according to their expectations. Positioning: Jaouda establishes its central idea that enhances its distinctiveness towards competition on its good quality and good taste. The positioning statement of Jaouda that is consistently delivered throughout its MARCOM efforts is: “Jaouda c’est bon!” Besides, after asking some people (friends, family) they all stated that Jaouda products have better taste than Centrale Laitière yogurts, and this statement includes as well our own point of view. This is mainly due to the fact that Jaouda has a limited number of production units which makes the managing and controlling processes easier, in contrast with Centrale Laitière which has several production units. Setting Objectives:
  13. 13. The role of MARCOM strategies in achieving the business goals of Jaouda mentioned above, are of paramount importance. Jaouda is using different MARCOM strategies: ranging from the least frequent such as TV and radio commercials, to the most frequent such as billboards, wall ads, and ads in newspapers and magazines. We will develop these communication media later in the paper. Budgetting: This part is concerned with the amount of the financial resources or budget allocated by Jaouda to its MARCOM strategies. Actually, Jaouda does not devote as much financial resources to advertising as its main competitor La Central Laitière. This is because of, first the belonging of La Centrale Laitière to the Group ONA, and its co-branding relationship with Danone (France). This fact allows La Centrale Laitière to allocate huge investments to its advertising campaigns. Eventhough, given the size, budget, and benefits of the company (jaouda), the MARCOM efforts of Jaouda are of considerable significance. Moreover, the budgeting decision in Jaouda is mainly a “top-down” one in which the senior management decides how much money will be devoted. Implementation Decisions Now, we will see how the fundamental decisions of Jaouda are influencing the implementation decisions. Mixing Elements Jaouda is combining between different communication tools instead of focusing on only one medium, in order to produce a synergistic effect. Concerning advertising, namely on TV and radio, it necessitates huge expenses ( 20000-30 000 dhs for only 30 seconds on TV), that is why the company is not very frequent on TV
  14. 14. ads. Thus, the strategy of Jaouda is to invest enough on promotions through: points of purchase communication, taste marketing, rebates… to ensure enough short term sales, and at the same time spending enough money on advertising in particular in newspapers and magazines in order to ensure the maintenance and development of its brand equity at the long term. Creating Messages As it has been stated earlier in the positioning section, the main message of Jaouda stands on offering good products of good quality and good taste at a reasonable and low price accessible to all Moroccans: “Jaouda c’est bon!” as we can see, the slogan does not reflect any kind of rigorous work or creativity. However, this is valid only if we compare with foreign advertisements, but if we consider the Moroccan context, people will not understand a complicated, implicit, or philosophical slogan. That is why Jaouda’s message is as simple and as basic as the products it is offering. Selecting Media As we have said, Jaouda’s MARCOM efforts in advertising are targeting mainly newspapers and magazines such as L’economiste, La vie économique, L’économiste magazine, Telquel… and billboards and wall ads as well. In this context, L’économiste Magazine, has published in its first issued number in May 2008 five full pages about Jaouda. These five pages included a detailed presentation of the company with an interview with the top manager M. Loultiti, and a page of advertising of the different products the company is offering namely: Cremy, and Mixy (yogurts). On the other hand, the different communication tools in terms of promotion are:
  15. 15. - Point of purchase communication mainly taste-marketing: setting Jaouda’s stands proposing to customers to try Jaouda’s products for free, especially in the large distribution: Marjane, Assouak Salam, and Label vie. Actually, this communication tool is highly effective in establishing quick and efficient touch points with consumers. Establishing Momentum It is clear that Jaouda is not as frequent in advertising as La Centrale Laitière, but an important thing to notice is that Jaouda maintains a certain ascending continuity of its MARCOM efforts. How is Jaouda enhancing its brand equity? As we have seen earlier in the SWOT analysis, the main factor that has helped Jaouda to penetrate successfully in the milk market is the traditional circuit (small stores) throughout Morocco. 1- Speak for itself approach: Consumers started trying Jaouda’s products and learned trough usage how good they are. At this stage they know that Jaouda’s products have better taste than others in the market, and that they really reflect the brand name meaning (Jaouda=good quality). 2- Message-driven approach: Once, consumers have developed a certain general idea of the brand and its products, Jaouda started reinforcing this general idea in the consumers’ collective mind through advertising and promotion tools (developed above). The role of MARCOM efforts here is to build and maintain positive, favorable, strong, and unique links with the consumer. When the slogan says “Jaouda c’est bon”, or when
  16. 16. M. Loultiti publishes interviews in magazines where he says that the company’s main objective is to deliver good-quality products to its consumers, this is actually emphasizing and reinforcing the idea that consumers has developed about the products when trying them for the first time. Besides, the continuity of apparition of the brand’s name in billboards, newspapers, magazines, TV … is necessary to maintain the brand awareness and equity of consumers towards the company. 3- Leveraging approach: The main purpose here is to leverage positive associations through establishing links with other brands, places, things, and people. Jaouda is so far focusing on the conexion with places: the main production unit of Jaouda was established in Taroudant. This region is well known for its richness with natural resources especially in cows, greenness… Thus, the associations of Jaouda that are stored in consumers’ collective mind are: good quality, good taste, good (reasonable) price. Furthermore, if we had to categorize Jaouda according to the five personality dimensions, it would fit within the sincerity and competence dimensions. Similarly, if we had to place Jaouda within the Brand Awarness Pyramid, we would situate it with the Brand Recall level. Currently, people are very aware of the name Jaouda, especially milk, and some well known yogurts such as Mixy, Cremy, Ghilal, ladid… for example people can go to a shop and ask for a Jaouda product, or they can easily recall the name during a discussion. However, to our mind we are convinced that the Top of Mind level is undoubtedly occupied by La Centrale Laitière: this is clearly reflected by the use of all Moroccans of the brand name “Danone” to designate yogurts in general (regardless of the type or brand). Positioning Via Brand Benefits
  17. 17. Benefits are the personal value consumers attach to the product or service attributes. Benefits are the need-satisfying features provided by brands. In short, needs and benefits can be thought of as flip sides of the same coin. Brands present a combination of functional, symbolic and experiential benefits. In the case of Jaouda only the two first ones exist since there is no experiential benefit. Functional benefits Functional benefits offer to satisfy the consumer’s consumption needs and solve problems related to it by spreading the idea which says that the brand has particular benefits to resolve these problems. The functional benefits in Jaouda are related to satisfying many needs of the consumer. First of all, the most important need is having a high quality product; this is to say, Jaouda must follow high standards to provide tasteful products that can face competition. Second, the company provides services to its consumers such as offering a call center where they can call to get information about the product or complaint if they have any problem. The third need to be satisfied is associated to respect the consumer’s good health and the cleanliness of the product. In fact, to buy the product, the consumer needs to be sure that it would not affect his/her health in addition to the fact that Jaouda has to respect cleanliness standards by making special packaging (As we have stated in the SWOT analysis Jaouda has an ISO 9000 certification). One of Jaouda’s functional benefits is that the whole family can enjoy it because it’s a product that can be used by everyone young or old. Finally, the price is not very high so that a large number of people can buy it. Symbolic benefits
  18. 18. The symbolic benefits, in contrast with the functional benefits, deal with associating brand ownership with a desired group, role or self image since name over time becomes guarantee of quality and consistency. This allows the merging of the consumer and the brand. In this stage, management should pay attention to create the right personality for the brand and to update it when needed. In effect, the image of the product must serve the consumer’s needs. For instance, Jaouda succeeded in enhancing its image in Morocco since it is now an official competitor to Centrale Laitière and has more and more consumers because of the products’ high quality. Also, the product is Moroccan, simple and basic. Jaouda brand name We can say that Jaouda’s brand name is appropriate because it satisfies the four conditions of a good brand name: “Jaouda” which means good quality is compatible with the brand positioning statement of the company, and the brand’s benefits. Indeed, it reinforces what the brand wants to convey to the consumers and what distinguishes it from the competition. In addition, it is short, easy to pronounce, to spell and to memorize. Nevertheless, the brand’s name is not conceived to be suitable for marketing in multiple countries, but since basically Jaouda is targeting only the local Moroccan market, this is not a problem. Jaouda’s logo
  19. 19. The logo of Jaouda can also be considered as appropriate since it is legible, it presents the essential idea of the company’s positioning statement, and it reflects a positive meaning. The picture of the cow next to the brand name indicates that it is milk product category, and that the product are natural and of good quality. Moreover, if we take the specific yogurt “Cremy” one of the most successful products of Jaouda, we can see that the packaging style is neither innocent nor arbitrary. The use of the green color means that the product is natural, and healthy. The different flavors are placed on the different sides of the product by pictures of the fruits or flowers representing the flavor: again the notion of natural and healthy products. Motivation to attend messages Jaouda uses different strategies in order to attract voluntary and involuntary attention: - Hedonic needs: In most of its advertising it presents enjoyment, pleasure, nature, childhood, warm family scenes to appeal to hedonic needs. - Use of intense and prominent cues: packages, billboards, and wall ads that solicit involuntary attention. - Using motion: Jaouda uses motion especially in packages, billboards, and newspaper ads. They are using photographic techniques to produce an effect of movement.
  20. 20. Recommendations First, Jaouda has a good position in the Moroccan market, so there is a perspective of developing its growth and accessing new market segments, namely the North African, and African markets. Concerning our recommendations, we encourage Copag Jaouda to build a strategic relationship (Co-branding relationship) with a foreign brand such as Yoplait (France). Actually, Yoplait would be interested in the positive evolution* of Jaouda, and this will be an opportunity for the French brand to access successfully the Moroccan Market, especially that Yoplait had a previous experience in Morocco. Indeed, the co-branding relationship will allow Jaouda to increase its investments, and to augment its production. In addition, Yoplait will help Jaouda to invest in research and development, improve its marketing and advertising processes, and to launch new products. Then, Jaouda will be able to face its main competitor La Centrale Laitière and increase its market share. *This graph shows the positive evolution of Jouda’s milk production.
  21. 21. Conclusion All in all, throughout our project we attempted to elaborate an in-depth analysis of the marketing and communication strategies of COPAG Jaouda. In this context, we can say that even though the company does not have a developed advertising as its main competitor La Centrale Laitière, its efforts in this context are of considerable significance.
  22. 22. References L’Economiste, 2007. Grande distribution: Menace pour les petits agriculteurs. Retrieved from, on the 04/016/2008. Telquel Online, 2008. Les Greniers du Maroc; un autre Maroc. Retrieved from, on the 04/16/2008. L’Economiste Magazine, 2008. “COPAG Jaouda”. T.A. Shimp (2007). Advertising and Promotion. South Carolina: Stratford Publishing Services.