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Youngs Tomato Ketchup Relaunch
Young's is relaunching its tomato ketchup in Pakistan. Previously, Young's ketchup failed due to a lack of variety and promotion. To succeed this time, Young's proposes introducing new flavors like chili garlic and chili ginger ketchup. It will target middle to upper income households and restaurants. Young's total marketing budget is Rs. 78 million, with 30% for promotion, 60% for production, and 10% for distribution. The promotional strategy includes TV, print, and radio ads, as well as sampling, demonstrations, and retailer incentives. The goal is to position Young's ketchup as a tastier option at a moderate price point.
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Youngs Tomato Ketchup Relaunch
- 3.
- 4. Introduction The house ofYoung’s started its operations in 1988 as a food processing establishment. The first product launched by Young’s was Mayonnaise.
- 5. International Markets • Today,Young’s Private Limited has entered into the following International Markets: • Asia • Europe • North America • Africa
- 6. Corporate Philosophy: All thebenefits come from the Creator of whole Universe “Allah”. Our organization is responsible to: • our Creator • our people • our business partners.
- 7. Vision: • TO becomea brand of choice for consumers seeking Halal ,healthy and hygienic food.
- 8. Mission Statement: “ Ourmission is to provide our customers Halal, Hygienic, Healthy, Nutritional, and Convenient food products through our customer driven and service oriented dynamic team.”
- 9. Product Range Real Mayonnaise Mayonnaise MayoGarlic Light & Egg Free Mayo Chicken Spread Sandwich Spread Chocolate Spread Olive Spread Pizza Spread Natural Honey
- 10. Reasons for Failureof Young’s Ketchup in Pakistan • There are two major reasons for the failure of Young’s Ketchup in Pakistan. Lack of variety in ketchup Lack of Promotion
- 12. Our Proposed Marketing Strategy: Wepropose that the Company should adopt Product Development Strategy. This can be done by launching new flavors in the product brand. • The Company should introduce flavors, like • Chili Garlic ketchup • Chili Ginger ketchup • Hot and Spicy ketchup
- 14.
- 15. Strengths • • • • • • Higher Brand image Qualityand Taste Strong brand loyal consumer base New flavors Best quality in low price Attractive trade promotion
- 16. Weaknesses • • • • Hard core loyals Unimpressivepackaging Higher pricing than local brands Narrow range of distribution channel
- 17. Opportunities • Improvement ofproduct • Improvement of packaging quality • Changing preference of consumer towards fast food. • Decreased operational cost • Developing foodservice industry
- 18. Threats • Price warwith competitors • Strong presence of regional competitors • Modest economy
- 19. Porter's Five ForcesModel
- 20. Porter's Five ForcesModel • Threat of New Entrant: A new entry of a competitor into your market also weakens your power. Threat of new entry depends upon entry and exit barriers. It is low because there are already many brands in the market. • Industry rivalry: Industry rivalry mean the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. So in this situation it is high.
- 21. Porter's Five ForcesModel: Bargaining Power of supplier : Bargaining Power of supplier means how strong is the position of a seller. How much supplier have control over increasing the Price of supplies. So in this case it is low. • Bargaining power of Buyers: Bargaining Power of Buyers means, How much control the buyers have to drive down your products price. . So in this case it is low
- 22. Porter's Five ForcesModel • Threat of substitutes: • Threat of substitute products means how easily customers can switch to your competitors product. It is high because there are many substitutes in market.
- 23. Porter's Five ForcesModel Bargaining Power of buyer Low Bargaining Power of supplier Low Competitive Rivalry High Threat of Substitution High Threat of New Entry Low
- 24. Target Market • Young’starget market consists of middle and upper-income household as well as foodservice sector for example; restaurant.
- 25. Target Market • Middleto upper class households for family • They want lower- priced product with high durability and preservation ability. • To serve three or 5 restaurant chains who want ketchup with a different but wonderful taste, more preservation within a reasonable price.
- 26.
- 27. Demographic Segmentation: Gender –Male and Female Age – from 5-50 Years • Singles and families. • Mostly females and children. • Have a household income of more than 10,000 per month • Middle-income and upper-income household.
- 28. Geographic Segmentation: • • • • Country –Pakistan Province— Sindh City – Karachi Population about 18.3 million
- 29. Psychographic Segmentation: we havetargeted the middle to upper class households who need ketchup for family and their children to add extra taste to their eating. We have targeted the consumers who are food loving and they heavily consume the Fast food.
- 30. Behavioral Segmentation: • Payinga premium for higher quality, tastier ketchup. • Special offers at Eid and other occasions • Health consciousness • Potential consumers • Medium product users • Shifting loyals
- 31. Positioning Positioning is theact of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Actually our strategy is to grab an unoccupied position.
- 32. Positioning Company& Product Target Consumers Benefits Value Proposition Young’s ketchup Quality conscious consumers of ketchup More preservation ability and tasty Tastier,spicy ketchup from the pure ingredients at a moderate price.
- 33. Financial Budget • Ourtotal estimated budget is 7,8000,000. We will spend 30% on promotion and 60% and on production and 10% on distribution. • We are spending 45,000,000 on Production and 1,000,000 on Distribution.
- 34.
- 35. Financial Budget forPromotion Particulars Cost Television Cost Rs. 12,000,000 Newspaper Rs. 5,000,000 Magazines Rs. 3,000,000 Outdoor Rs. 2,500,000 Radio ads Rs. 1,500,000 Total Rs.23,000,000
- 36. TV Budget • ChannelTiming No ads Price • Ptv home 7.30am 2 21,000,000(Rs) • 9.15pm 2 1,500,000(Rs) Geo 10 pm 2 4,000,000(Rs) • ARY 8 pm 2 3,500,000(Rs) Cable channels 9pm2 2,000,000(Rs) Total 12,000,000(Rs)
- 37. Print Ads News paper: SizeDay Price • Dawn 27 4 Sunday 3,000,000(Rs) • Nawa-e-Waqt 27 4 Sunday 2,000,000(Rs) Total: 5,000,000(Rs)
- 38.
- 39. Product The first andbasic P of the marketing mix is product. Young's Tomato Ketchup provides an ideal relish for use with all types of foods especially fast foods.
- 40. characteristics of Product •The product Best quality • More durability • Posses no harmful chemical ingredient
- 41. Ingredients • Tomato concentratefrom red ripe tomatoes, distilled vinegar • High fructose corn syrup • Corn syrup salt • Spice, natural flavors (bell pepper concentrate) • Onion powder • Dehydrated jalapenos
- 42. Product Differentiation • • • • • • Young’s Tomatoketchup should emphasize its differentiation on the basis of : Brand Quality Taste Variants.
- 43. Packaging • The brandname of young's tomato ketchup will be visible in packaging. • Colors will be according to the taste and quality of the product. • Packaging will carry the Product Attributes
- 44. Product Attributes: • Theingredients in the Tomato ketchup should contain all of the elements that are essential for a like: • Nutrition Information Serving size: 1 Tbsp (17g) Calories: 20 Fat Cal: 0 All elements should be used after a careful research about the preference of the consumers.
- 45. Amount/serving %DV* Total Fat 0g 0% SaturatedFat 0g 0% Trans Fat 0g 0% Cholesterol 0mg 0% Sodium 160mg 7% Total Carb 5g 2% Fiber 0g 0% Sugars 4g Protein 0g
- 46. Labeling: • • The label willidentify the brand name. It will be attractive because of the use bright colors and graphics. • young's tomato ketchup will be written in the middle of the Packing.
- 47.
- 48. Pricing Strategy: • Pricingis an important strategic issue because it is related to product positioning. • For Young’s Tomato Ketchup the pricing objective is to maximize the market share. • price penetration strategy will be employed. So the prices will be a little lower than the major competitors.
- 49.
- 50. Distribution Strategy • Intensivedistribution to have our product sold through well-known stores and shopping malls. • The major ketchup catalogs and Websites. • Detailed specification handouts, full-color photos and displays featuring the product. • We will also arrange special trade terms for retailers who place volume orders.
- 51.
- 52. Promotion Young’s tomato ketchupshould be promoted using the ATL and BTL activities both. The blend of these activities is important to communicate the brand and message to the target market. • Advertising • Direct marketing • Sales promotion
- 53. Advertising • "Advertising isthe non personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media.“ • The goal of advertising is “Informative Advertising”.
- 54. Advertising • TV ads: T.V Commercials(ARY digital, Geo,Ptv home ,CABLE CHANNELS) • Radio ads: Radio FM 94.6, FM 100, FM 106 • Bill Boards • Print ads: Newspaper (DAWN, JANG) and magazines
- 55. Sales Promotion • Samplingprogram • Free trials • Point of purchase displays and demonstrations
- 56.
- 57. Point of Purchasedemonstration
- 58.
- 59. Trade Promotion tools Incentiveto Retailers: • These incentives are in the shape of: • Return Tickets • Free Transportation Services.
- 60. Incentive to Dealers: •The best dealer of the year will be awarded with a brand new Suzuki Pickup. • The second will be awarded with Motor Cycle. • The third incentive of Restaurant vouchers will be awarded to 10 dealers.