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Engro Olfrute Re-Launch Marketing Strategy and Communications Plan
The document outlines Engro Foods' marketing plan for its Olfrute juice brand, launched in 2010 but currently holding only 1% market share. It details competitor analysis, SWOT assessment, and marketing objectives, including targeting health-conscious youth and achieving a 15% market share in the first year. The plan includes product differentiation, pricing strategies, extensive promotional activities, and a robust distribution network leveraging Engro's established channels.
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Engro Olfrute Re-Launch Marketing Strategy and Communications Plan
- 1. ENGRO OLFRUTE MARKETING PLAN PresentedBy: Aimen Shah Aneel Ahmed Khan Ayyaz Tanveer Hussain Iftikhar M. A. Hanan Rasool Mir Arooj Hassan Natasha Hassan Omair Anwar Waqas Azeem Bajwa Presented To: Ms. Maryam Wazirzada
- 2. Company Introduction • Subsidiaryof Engro Corporation Ltd incorporated in 2005 • Major Brands • Olpers Milk, Tarang, Omore and Olfrute • • • • Engro Foods Olfrute Launched in 2010 Pure Nectar Juices 6 flavors Failed Launch, only 1% current market share
- 3. Olfrute Flavors Mango, Apple, Orange Peach Guava, Grape SKU 200 ml 1 liter Price Promotion Rs.20 – 25 2 TVCs at launch Rs. 90 – 105 Housewives / Independent women Placement Only few outlets
- 4. Competition Direct • Nestle • Shezan •Minute Maid Competition Indirect • Pepsi • Coca Cola • Other Beverage Brands
- 5. Competitor Analysis Nestle FruitaVitals 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 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 Olfrute Minute Maid Colas • 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 • • • • • 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.
- 6. SWOT Strengths Weaknesses • Parent company support •Low financial constraints • Effective, in place distribution networks • Engro foods has established a strong brand image • Lack of effective communication in their ads • No well defined target market • Olfrute has already failed Opportunities Threats • Growing market • People shifting from soft drinks to more healthy drinks • The “healthy’’ product market is expanding • Competition • Nestle’s strong market influence as it is well placed • Increasing number of substitutes
- 7. Marketing Objectives • Replenish energy •Quench thirst • Taste Consumer Objectives USP Marketing 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 • 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.”
- 8. Proposed Marketing Strategy STP MarketingStrategy Action Programs Marketing Budget
- 9. Segmentation, Targeting & Positioning Segments Identified •Housewives • Working Women • Professionals / Executives • Teens Targeting Positioning • Teens • Maximize lifetime customer value • Bring about a change in mindset – change the perception of fruit juices • Lifestyle and psychographic • Young, active, health conscious, adventurous teens • Focus on the functional features of the product
- 10. AIDA Model Approach Awareness Createinterest through teaser campaigns at relaunch + brand activation Interest Desire Action = Sales Spread awareness about Olfrute and benefits of fruit juices (energetic, healthy) Desire: Brand Ambassadors which will appeal the youth
- 11. Action Plan –Product Differentiation Change in Packaging Change in Packaging New Flavors – Exotic variants like Passion fruit • New SKU of 330 ml • Introduce bottles for 330 ml and 1 liter • 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
- 12. 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
- 13. Action Plan -Placement Engro Foods Olfrute • Robust distribution network in place • High market presence and reach • Utilize Engro’s established distribution network for retail stores Teen Focused • Schools, Colleges and Universities • ‘Khokhas’ and tuc shops too
- 14. Action Plan –Promotion Strategy Brand Activation Concerts and campus drives InterUniversity Battle of the Bands competition ATL Teaser Campaign for 15 days Unveiling of Complete campaign TVCs Radio BTL Trade and Retail promotions Billboards Print media
- 15. Promotions Strategy –1st Quarter Brand Activation Drive Starts in popular schools and universities – 12 concerts in 12 months Teaser Campaign for 15 days on TVCs, Radio, Billboards and Print Media Unveiling of the main campaign and the brand ambassadors
- 16. Teaser Story line Teaser Ad1 Teaser Ad 2 • 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 • • • • 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
- 17. 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
- 18. Promotions Strategy –Quarter 4 Brand Activation ATL and BTL • Campus Concerts coming to an end • Battle of the Bands – Inter university competition commences • Maintain media presence but not as aggressive as before • Focus more on trade promotions to encourage distributors to carry Olfrute and its variants
- 19. Media Planning TVCs • TimeSlots- 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
- 20. Marketing Budget Marketing BudgetBreakup (PKR Mil) TVCs 50% 216 Radio 15% 65 Print 10% 43 BillBoard 15% 65 Brand Activation 10% 43 Total (PKR Mil) 432
- 21. Sales Forecasting Top DownApproach to forecast sales Juice Market (Nectars and Still Drinks) stood at 128 million litres • 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
- 22. 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
- 23. Income Statement Projection ProjectedIncome 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 5.76 9.24 12.87 15.30 43.17 11.52 18.49 25.74 30.60 86.35 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 less: Administrative Expenses(2%) EBITDA less: Depreciation Expense+Amortization Expense
- 24.