Jamie Oliver – Spain         ¡Qué sea sencillo!                (Keep it Simple)  Small Grind Mills - Marketing Strategy   ...
IndexExecutive Summary…………………………………………………………....               3Macro Analysis – P.E.S.T. Analysis………………………………………..       ...
Executive SummaryJamie Oliver has long since developed from a cheeky, celebrity TV chef, to the principalambassador for an...
Spain - PEST AnalysisPolitical OverviewThe PSOE (Socialist Party) was re-elected in national elections in May 2008 but wit...
Spain - Vital StatisticsPopulation: 46 millionMadrid: 6.3 millionBarcelona: 5.3 millionTrade statistics 2010UK Exports to ...
Spain - Consumer Index: Q3 - 2010                               As is the case in many other European countries           ...
Jaime Oliver in SpainDespite the on-going international success of the Jamie Oliver brand, in Spain it remainslargely unkn...
The Spanish ConsumerFood plays a very important part in Spanish society with a great deal of time dedicatedthe days main m...
S.W.O.T. Analysis                                             Internal                  Strengths                         ...
Marketing Strategy and ObjectivesStrategyAs we have seen the Jamie Oliver brand is still relatively unknown among Spanishc...
Segmentation, Targeting and PositioningSegmentationGeographic:    Valencia community, cities, flat dwellingDemographic: Yo...
The Marketing MixProductPrimary Product: Jamie Oliver Small Grind MillsBenefits: Quick and easy solution to improving meal...
The Retail Environment – Key FactorsMore SupermarketsAccording to the Ministry of the Environment, Rural and Marine Affair...
Point of SaleAn essential part of the marketing mix will be careful consideration and selection of adequatepoints of sale ...
Carrefour GroupIt should be noted that Carrefour and Dia         Group/Banner   Nº Stores   Sales 09 (M.€)   % 08/09have s...
End of Aisle                                                                                                              ...
Sales Objectives       Monthly Sales Targets: 2011/2012       It is hoped that the campaign will achieve a turnover of app...
Monitoring and ControlAs is the case with any FMCG marketing strategy the ultimate measure of control will be seenin the s...
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Jamie Oliver Marketing Plan Spain 2011

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An integrated marketing plan for the Small Grin Mills in the Jamie Oliver cooking range designed by Messum Export for the laucnh of teh Jamie Oliver brand in the Spanish Market.

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Jamie Oliver Marketing Plan Spain 2011

  1. 1. Jamie Oliver – Spain ¡Qué sea sencillo! (Keep it Simple) Small Grind Mills - Marketing Strategy Spain 2011
  2. 2. IndexExecutive Summary………………………………………………………….... 3Macro Analysis – P.E.S.T. Analysis……………………………………….. 4Spain – Vital Statistics……………………………………………………...... 5Spain – Consumer Index…………………………………………………….. 6Jamie Oliver in Spain…………………………………………………………… 7The Spanish Consumer……………………………………………………….. 8Micro Analysis – S.W.O.T……………………………………………………… 9Marketing Strategy and Objectives……………………………………… 10Segmentation, Targeting, and Positioning………………………...... 11The Marketing Mix……………………………………………………………... 12The Retail Environment………………………………………………………. 13Point of Sale……………………………………………………………………….. 14Implementation………………………………………………………………….. 16Sales Objectives…………………………………………………………………… 17Monitoring and Control……………………………………………………….. 18 2
  3. 3. Executive SummaryJamie Oliver has long since developed from a cheeky, celebrity TV chef, to the principalambassador for an internationally recognised brand promoting an enthusiastic and funapproach to creating uncomplicated meals from good quality, healthy ingredients.Over recent years the brand has developed its global appeal enjoying phenomenal success inits international expansion. Jamie Oliver TV programmes are aired in more than 100 countriesand his products can be bought in over 40 different nations worldwide.In Spain, the Jaime Oliver brand gets regular exposure through the emission of its TVprogrammes on Canal Cocina, a popular cooking channel and his retail products are on sale inall many outlets of the El Corte Inglés premium retailing giant. However the brand does notenjoy widespread recognition and the average Spanish consumer is, at best, only aware ofJamie Oliver as an enthusiastic, young chef, failing to appreciate the breadth of the JamieOliver brand.The purpose of this report is to provide Fiddes Payne, on behalf of Jasa Internacional S.A.with an integrated marketing strategy for the introduction of the Jaime Oliver Small GrindMill Range into the Spanish market place, in this instance the Community of Valencia. In sodoing, it is hoped that Fiddes Payne will not only achieve a greater understanding of theSpanish retail environment and consumer trends but also establish an on-going, successfulrelationship with Jasa Internacional S.A., their Spanish distribution partners. 3
  4. 4. Spain - PEST AnalysisPolitical OverviewThe PSOE (Socialist Party) was re-elected in national elections in May 2008 but without anoverall majority with Prime Minister Jose Luis Rodríguez Zapatero at its head. Spain isdivided into 17 autonomous regions each with its own parliamentary government. In theCommunity of Valencia the centre-right “Partido Popular” has been in office since 1995although current, on-going corruption allegations could see this trend bucked in theimminent autonomous elections in April. On a national level, Socialist Party is becomingincreasingly unpopular as a result of the economic crisis and it is widely accepted thatZapatero´s party will fail to win another term in the 2012 elections.Economic OverviewBefore the crisis the Spanish economy was hugely dependent on its booming constructionsector, accounting for 16% of GDP in 2007, more than twice the EU average. However, at theend of 2008 Spain entered recession. The economy contracted by 3.6% in 2009 and 0.3% in2010 with unemployment rising to 20%. However, positive growth is forecast for 2011 andSpain has some notable strengths that will assist the recovery, such as a robust centralbanking system and a resilient export sectorSocial OverviewSpain has a different working timetable. The majority of businesses will shut between 14:00and 16:30 and employees generally finish the working day at around 20:00. Despite thepresence of regional dialects the main business language used throughout Spain isundeniably Castilian Spanish. Generally English is not widely spoken especially amongstsmaller agents or distributors. British firms will therefore need to be prepared forcommunicating in Spanish.Technological overviewThe Spanish IT sector is now worth over €100bn but modern IT systems have been slow topenetrate SME´s and as a result Spain lags behind its European neighbours.Spain has been marked 7.77 out of 10 for business environment e-readiness in TheEconomist’s “e-readiness ranking 2008”. 4
  5. 5. Spain - Vital StatisticsPopulation: 46 millionMadrid: 6.3 millionBarcelona: 5.3 millionTrade statistics 2010UK Exports to Spain € 8.9bnUK Imports from Spain € 9.1bnComunidad de ValenciaPopulation: 5.1 millionValencia Capital: 2.5 millionAlicante: 476,000Castellón 180,000Trade statistics 2010UK Exports to Valencia € 0.9bnUK Imports from Valencia € 1.7bn 5
  6. 6. Spain - Consumer Index: Q3 - 2010 As is the case in many other European countries there is an increasing trend among Spanish consumers to spend more of their money in Supermarkets and heavy discounters to the detriment of traditional retailers. The performance of the Spanish supermarket format, which has gained more than 2% market share in the last year can, in the main, be attributed to the continued success of the supermarket chain Mercadona which combines value for money, quality of produce and high convenience. The economic crisis means consumers are increasingly favouring hard discounting outlets and seeking more “Marca Blanca” (Private Label) brands. Source: ©Europanel GIE 2010 6
  7. 7. Jaime Oliver in SpainDespite the on-going international success of the Jamie Oliver brand, in Spain it remainslargely unknown. His TV programme “En Casa de Jaime Oliver” which is regularly emittedby specialised, pay-per-view cooking channels has a small but loyal following.However, the brand has failed to achieve wider appeal and those that do indeed recogniseJamie Oliver consider him solely a talented and enthusiastic TV chef, remaining largelyunaware of his social campaigning, celebrity status and range of consumer products.Who is Jaime? ¿Quién es Jamie?United Kingdom SpainTV Chef TV ChefCelebrity EnthusiasmEnthusiasm Fun and TastySimplicity ?Fun and Tasty ?Naked Chef ?Pukka Tukka ?School Dinners ?Recipe Books ?Sainsburys ?Kitchen Products ?15 Restaurants ? 7
  8. 8. The Spanish ConsumerFood plays a very important part in Spanish society with a great deal of time dedicatedthe days main meal “la comida” (lunch). Traditionally many companies will shut for up totwo hours in the afternoon between 14:00 and 16:00 and employees will return home toenjoy a homemade dish.This trend in however changing with international businesses adopting a more northEuropean approach in their working hours and as such a greater emphasis is placed onthe ease and speed of preparing tasty meals.It should be pointed out that the Spanish are, in general, fiercely proud of their nationsculinary reputation and a stubborn reluctance to try something different permeatesmany peoples attitudes towards food “from abroad”.This is evidenced in the fact celebrity TV chefs, a relatively new concept, are all fromSpain and rarely provide anything more daring that a reinvention of a famous andpopular national dish. Karlos Aguiñano Ferran Adrià Bruno Oteíza 8
  9. 9. S.W.O.T. Analysis Internal Strengths Weaknesses• Jamie Oliver as brand ambassador. Goes • Packing is not currently in Spanish beyond cooking • Breadth of Jamie Oliver brand largely• New exciting concept in home cooking unknown• Strength of Jamie Oliver Brand • Route to Spanish market under-developed• Well established brand philosophy and image External Opportunities Threats• Jamie Oliver has universal appeal • Traditional Spanish cooking habits conflict• Modern trend towards a more north with grinder mill concept European work ethic, emphasis on saving • Negative attitudes towards English cuisine time • Eating habits and working routines are very• Potential to cross sell other JO products, different in Spain building consumer loyalty • Threat of dominance of private label products • Ongoing economic crisis means increased price sensitivity • Spanish consumer generally unreceptive to new ideas 9
  10. 10. Marketing Strategy and ObjectivesStrategyAs we have seen the Jamie Oliver brand is still relatively unknown among Spanishconsumers. Furthermore, those familiar with Jamie Oliver “the chef” are largely unawareof the wide range of consumer products, books, restaurants and social campaigning thatmake up Jamie Oliver “the brand”.In addition, as a relatively new concept to food preparation the Jamie Oliver SmallGrinders range is in conflict with certain “dyed-in-the-wool” Spanish eating habits andcooking techniques. To ensure success it is therefore crucial that the marketing messagechallenges these traditional habits and stimulates not only a growing awareness of thebrand but also a sustainable interest.Ultimately a successful market campaign will need to combine high reach and frequencybut in this instance, in the interest of economy, it is suggested that reach is sacrificed forhigh frequency among a targeted segment of early adaptors, willing to try new productsand capable of influencing their peers. In this way, the task of convincing potentialconsumers about the benefits of the JO Small Grind Mills falls on peer group opinionleaders and as such carries considerably more impact at considerably less cost.ObjectivesIncrease awareness in general of the Jamie Oliver brand and develop recognition andrecall.Reach a frequency of at least three times a week among the targeted audience of earlyadaptors. 10
  11. 11. Segmentation, Targeting and PositioningSegmentationGeographic: Valencia community, cities, flat dwellingDemographic: Young, male, independent, educated, middle class, above average incomeTargeting MEET JUANJO: Aged anywhere between 25 and 35 Juanjo is an independent young man, either sharing a flat with his friends or recently moved in his long term partner. He is university educated, driven and progressing well in his chosen career. Technology is important to Juanjo. He has the new iPhone 4 which he regularly uses to update his Twitter and LinkedIn accounts. Although Juanjo has an above average income he is fully aware that there is more tolife than just work so he is constantly on the lookout for new ways of having fun. On theweekends he enjoys pursuing a range of outdoor activities from hiking to mountain bikingor simply relaxing on the beach in the summer. To save money before going out at theweekends, Juanjo and his friends regularly have dinner at home, taking it in turns to cook.Juanjo´s will happily admit his skills in the kitchen are limited but he is not afraid to have ago and he regularly surprises his guests with new and original creations. He is self-confident, outgoing an excited about the future even though he is not certain where it willlead.PositioningAlthough marketing mix must be adapted to the Spanish market it is also essential that itrespects the core Jamie Oliver brand philosophy and image, which is already extremely welldefined. 11
  12. 12. The Marketing MixProductPrimary Product: Jamie Oliver Small Grind MillsBenefits: Quick and easy solution to improving mealsDesign: Quality upright grinder.Secondary Product: The Jamie Oliver Brand and subsidiary productsPriceSmall Grind Mill – RRP: €2.99. Subject to price promotions.PlaceCurrently on sale at El Corte Inglés but needs to increase its presence and gain listings inother, more accessible supermarket chains. The principal supermarket chains are;Carrefour, Consum, Aldi, Eroski and Al Campo. (Mercadona has not been included dueto its over-emphasis on private label brands)PromotionThe principal form of promotion for the JO Small Grind Mills should be an aggressivepricing strategy, either through attractive discounting or giveaways with a minimumorder quantity. This shall be supported by heavy P. of P. sales promotion in the form ofleaflets, display stands and sample packs, ideally incorporating the whole JO herbs andspices range.It is also suggested that a strong element of public relations is incorporated intomarketing mix helping the target audience to familiarise itself with the breadth of theJO brand. Suggested publication are supermarket magazines such as the El Corte InglesClub de Gourmet monthly publication. 12
  13. 13. The Retail Environment – Key FactorsMore SupermarketsAccording to the Ministry of the Environment, Rural and Marine Affairs (MARM) there are atotal of 17,000 modern grocery retail stores in Spain, 70% of which are supermarkets. Thesupermarket sector has experience the highest growth in recent years. Last year 70% of storeopenings were supermarkets against 10% for the hypermarket format, (source: Alimarket2010). Mercadona is the market leader in the supermarket format and in order to compete,traditional large distribution groups such as Carrefour have reevaluated their strategies tofocus on the smaller, convenience format.More Private LabelsAs consumers become more price sensitive they are opting for cheaper, but generally reliable,private label products. AC Nielsen estimates that in 2010 private labels sales represented overa third of total FMCG sales. In addition NPD launches decreased by over 50% as manufacturestried to consolidate the sales of existing products with more aggressive pricing strategies.Strong Foreign PresenceThe market has a strong foreign presence, with French and German groups heavilyrepresented in the Hypermarket (Carrefour and Auchen) and discount (Dia, Lidl Aldi) sectors.However the supermarket format is dominated by domestic chains (Mercadona and Eroski). Market Share of Spain´s Leading Grocery Chains Source: Alimarket October 2009 13
  14. 14. Point of SaleAn essential part of the marketing mix will be careful consideration and selection of adequatepoints of sale for the JO Small Grind Mills range. Appropriate retailers that combine reasonablepricing with high quality and convenience must be approached in order to expose the JO rangeto the highest possible concentration of our target audience.El Corte Inglés already stocks various JO products so it is likely that regular ECI customers arealready familiar with the brand. It makes sense to build upon this brand awareness, increasingthe JO presence among all the different ECI formats. With its commitment to innovation the Carrefour group is the second retailer that should betargeted in this marketing plan and will be examined in detail below.El Corte Inglés GroupWhy El Corte Ingles? Group/Banner Nº Stores Sales 09 (M.€) % 08/09Ranked fifth largest retailer in Spain theECI Group offers a wide range of formats Hipercor 356from hypermarkets to petrol forecourts. Supercor 37Overall ECI attracts a more educated El Corte Ingles 83 4,630 -5.8%and affluent consumer in line with our Opencor 54target audience. TOTAL 356Price StrategyTraditionally ECI has competed more on quality than price but recently it has had toreadjust its strategy to cope with increasing price sensitivity. As such, in the current climateECI represents excellent value for money.PromotionIt is common for suppliers and manufacturers to be contractually obliged by ECI to carryout a minimum of 2-3 price promotions throughout the year. Generally suppliers areexpected to invest between 10 and 15% of the estimated annual sales (fixed by the buyer).Promotions can include: end if aisle displays with 10% discount, promotional leafletsand/or in-store display units. 14
  15. 15. Carrefour GroupIt should be noted that Carrefour and Dia Group/Banner Nº Stores Sales 09 (M.€) % 08/09have separate buying departments and logistic Carrefour 281systems so cannot really be consideredtogether. For the purposes of the marketing Dia 2,814 14,296 -7%plan we shall consider Carrefour exclusively. TOTAL 3,095Why Carrefour?In 2009 Carrefour was Spains second leading grocery retail group having been overtaken byMercadona. To remain competitive they have developed three new formats: Carrefour Mini-Hypermarkets (a compact version of their star format), Carrefour Market (the supermarketrange) and Carrefour Express (inner-city convenience outlets). Carrefour Express branchesare small neighbourhood stores similar to the Tesco Express format with an average size of450m2 and stocking roughly 4000 references. Convenient, innovative in terms of NPD andreasonably priced the Carrefour Express branches fit well with the buying habits of our targetaudience and form an essential of the marketing mix.Price StrategyCarrefour positions itself and the market leaders in product innovation, keeping up to datewith the latest purchasing trends so are ideally suited for introducing a new concept such asthe JO Small Grinder Mills. They have seven private label food ranges making up 30% of theirannual sales in 2009 (Alimarket 2010) in contrast to Mercadona where the figure is over50%.PromotionThe annual value of promotion support is amongst the highest in Spain and can reach 23%for branded products. Manufactures are expected to launch 3-4 promotions a year. Commonstrategies are “3 for 2”, second unit with 30-70% discount and in-store leaflets.End of aisle displays can cost up in the region of 400 – 500€ per store for 1 week.Listing fees are common but can vary depending on the product. On average the fees arebetween 8,000 and 10,000€.N.B: It is worth noting, when considering the full Fiddes Payne range that Carrefour holds aDisney license agreement for its “Carrefour Kids” product line. 15
  16. 16. End of Aisle End of Aisle Implementation March March Stores in Valencia Community February February9080 J amie Olive r Small Grind Mills - Ye arly Pric e Pro mo tio ns J aime Olive r Small Grind Mills - Ye arly Pric e Pro mo tio n End of Aisle70 31 Carrefour November December January November December January60 Group5040 29 10 % O f f30 ECI Group 22 5020 1210 7 8 2 1 0 10 % O f f September October September OctoberYearly Media Schedule 3 for 2Obtaining a listing for the JO Small Grind Mill range in a largesupermarket chain often implies certain yearly promotionalobligations, in many cases at least three times a year. August AugustA marketing schedule must therefore be developed to effectively 3 for 2control this process and ensure that all marketing July Julycommunications maximize the product exposure. End of AisleA guideline campaign has been designed to give the brand Junemaximum coverage throughout the year. The Carrefour outlets Junewill be the subject of a “guinea-pig” campaign owing to itssmaller market share and fewer stores within the Valencia May MayCommunity. A month later, allowing time for evaluation and End of Aisleimprovement a “copy cat” campaign will commence among themore abundant ECI outlets. This will also help to avoid a April Aprilpronounced peak and trough sales pattern and will providesteadier cash flow throughout the year. ECI Gourmet CarrefourIn addition, a quarterly ECI Gourmet magazine campaign will runsimultaneously to the in-store promotions lending greater Name ECIfrequency to the campaign and positioning the products withinthe high quality sector. Price PromotionThe promotional year will end in March 2012 with maximum Magazine Promotionexposure among all media and results will be collected and 16analyzed for the following year.
  17. 17. Sales Objectives Monthly Sales Targets: 2011/2012 It is hoped that the campaign will achieve a turnover of approximately € 50,000 in its first year but with ECIs 50 stores in the Valencia Community in contrast to Carrefours 31, it is not expected that monthly sales are distributed evenly between the two retailers. We see below estimated monthly sales targets for year 1, with notable peaks at Christmas and throughout the year in harmony with the various price promotions and media communications included in the campaign.40003500 April May June July August September October November December January February March30002500 Magazine Magazine Magazine Magazine End of Aisle 3 for 2 10 % O f f End of Aisle2000 End of Aisle 3 for 2 10 % O f f End of Aisle 3 for 215001000 ECI 500 Carrefour 0 Monthly Sales Figures April May June July Aug Sep Oct Nov Dec Jan Feb Mar TOTAL ECI 1250 1750 2500 2000 2250 3250 2500 3000 3750 2250 2500 3000 30,000 Carrefour 1000 750 1250 1500 1000 1500 2250 1750 3000 2000 1750 2250 20,000 TOTAL 2250 2500 3750 3500 3250 4750 4750 4750 6750 4250 4250 5250 50,000 17
  18. 18. Monitoring and ControlAs is the case with any FMCG marketing strategy the ultimate measure of control will be seenin the sales volumes achieved throughout the life of the campaign. If monthly sales targets areregularly met and/or exceeded it is natural to assume that the campaign has been a success.However from a long term perspective it is also crucial to evaluate the perception of the brandamong not only its current buyers but also those who have the potential to become loyalconsumers.Big supermarkets regularly carry out taste testings in focus groups and it will be important toliaise closely with them to discover feedback. It is also proposed that a series of focus groupsbe established throughout the course of the campaign among the public to discover, monitorand control people s awareness of and attitudes towards the Jaime Oliver brand. This Marketing Report has been carried out by Messum Export on behalf of Jasa Internacional S.A. and Fiddes Payne. For more information contact us on info@messumexport.com

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