1. Product/Brand Marketing
Dec 9, 2010
VERONIKA Ježková
IRINA Lukyanova
IVANA Sadílková
PETR Weida
TEREZA Bártová
Team No. 6Team No. 6
Orion Chocolate BLOrion Chocolate BL
Case StudyCase Study
3. 19.3.2015 3
SWOT Orion
Strengths Weaknesses
• Tradition
• Well-established local brand
• Cacao taste
• Quality
• Level of distribution
• Winner in blind tests
• Weak perception by consumers
• Non-uniform communication
campaign and positioning
• Inexpressive package
• Low customer loyalty
Opportunities Threats
• Growing market of tablet chocolates
• Limited editions
• Better communication
• Uniform positioning
• Population´s getting older
• Innovation
• Growing Milka´s MS
• Loss of a shelf share
• Increasing price of cacao
• Private labels´ similarity and quality
4. 19.3.2015 4
Strengths Weaknesses
• Milk taste
• Natural impression
• Well-established international
brand
• High loyalty of customers
• Uniform communication campaign
and positioning
• Successful price policy
• Higher price
• Not traditional local brand in the CR
Opportunities Threats
• Gain of a higher shelf share
• Penetration into other markets
• Innovations
• Local brand´s development
• Threatening loss of the violet cow as
a symbol
SWOT Milka
5. 1) Weak perception by consumers
2) Unknown „reason why“
3) Non-uniform communication
campaigns and positioning of the brand
4) Unattractive package
5) Lower loyalty
6) Lower price elasticity than Milka
19.3.2015 5
Key Issues
6. • Age: 30+
• Families with older children, single people
• Their attitudes/values:
– Preference of cacao taste
– Nationality
– Care about price
– Need to enjoy the taste of one
piece of chocolate longer
19.3.2015 6
Target Group
7. 19.3.2015 7
Mrktg Objectives
OBJECTIVES GOALS Diff. (p.p.)
To increase the loyalty
of consumers/ shoppers
20%
(5/2010)
30%
(12/2011)
10
To increase the penetration 37%
(5/2010)
45%
(12/2011)
8
To increase the market share 8,9%
(12/2009)
12%
(12/2011)
3,1
To stabilize the price policy* Orion´s price lower than Milka´s
in 90% of cases
* Conclusion based on observation
8. 19.3.2015 8
Mrktg Strategies
"4P" STRATEGIES MEASURES
Product
Address shoppers so that they would buy
Orion BL instead of Milka.
Penetration
Price
Pay attention to the current price of Orion BL
in certain stores (it mustn´t be higher than
the price of its biggest competitor Milka).
Price map
Place
Definitely continue with the current level
of distribution, further try to focus on new
distribution channels.
Number
of the first
trialists, BA
Promotion
Convince shoppers/consumers so that they
would change their perception about the
quality of the brand Orion.
Brand health
9. „Become a star among
chocolates
for the traditional softly
cacao taste.“
19.3.2015 9
LT Vision
„Stát se hvězdou mezi čokoládami
pro tradiční jemně kakaovou chuť.“
11. 19.3.2015 11
New Package Design
New package design as a part of the chosen product strategy:
• More shiny colour
• More specific name for Orion chocolates BL
• Flavour identified with a picture as well as in words
12. Action Plan
* Regarding the exact number of days when we are in TV, please see the back-up slides no. 25-26 about TV commercial
13. 19.3.2015 13
TV Commercials
SP MP
Čt 1 2x 5x
Nova 5x 8x
Prima 3x 8x
January February March April May June July August September Octomber November December
2x20s x 1x20s 1x20s 2x20s 1x20s x x 2x20s 1x20s 1x20s 1x20s
x x 1x30s 1x30s x x x x x 1x30s 1x30s x
note: MP SP
• Advertising on three major programs:
– Nova
– Prima
– ČT 1
The most watched programs by our target group
How many times per week ?
(divided according to different TV programs)
14. 19.3.2015 14
Spaceshow
„Hvězdná koleda“
„Come to enjoy long-lasting cacao taste!“
Make a traditional communication tool
from this event
Eastern, St. Nicholas Day (peak)
-> Beginning approx. 3 weeks before these
holiday
18 Czech cities (9 Bohemia + 9 Moravia)
2 Orion „spaceships“ – 18 cities – 3 weeks
- Family competitions, selling stand
- Start of long-term CC announced (flyers)
- Testimonial
16. 19.3.2015 16
Consumer Competition
„Koledování s Orionem“
Involve not only particular consumers but
especially the whole families as well as their
close friends
Start: Easter Spaceshow
End: St. Nicholas Day Spaceshow
7 months
Start + End: Particular Czech cities
Consumers will be asked to collect packages
from Orion chocolates BL within a certain period
Prices:
1) 25 pcs – Orion chocolate liquer
2) 50 pcs – Orion desk game
3) 75 pcs – Orion fondue set
-> Main price: „Weekend stay for your family and
friends at a cottage in the mountains.“
17. Jan Feb Mar Apr May Jun
x Lower price
Tasting
(with hostesses)
2 + 1 free Easter promo
(special Easter package
for 3 chocolates)
2 + 1 free Lower price
19.3.2015 17
Sales Promotion
Jul Aug Sep Oct Nov Dec
x x Lower price
Tasting
(with hostesses)
30% for free
(identified directly
on the package)
2 + 1 free Lower price
21. • Penetrate into new distribution channels
– Airplanes: „sky shop“
– Fast trains: pendolino, EC, IC
– Buses: esp. Student Agency
• Keep price politics stable
• Make a traditional annual event from the
spaceshow „Hvězdná koleda“
• Create own websites for the brand Orion
19.3.2015 21
LT Objectives
24. • Main period (MP)
– Longer version (30s): 2 weeks before/during the
spaceshow
– Shorter version (20s): 2 weeks before/during the
spaceshow
• Secondary period (SP)
– Continuous advertising – general TV spot (20s)
19.3.2015 24
Back-up
TV Commercials
25. 19.3.2015 25
Back-up
TV Commercials
MP Monday Tuesday Wednesday Thursday Friday Saturday Sunday
6 - 10 h Čt 1 Nova Prima Čt 1 Nova Prima Čt 1
10 - 16 h Nova x Nova x Prima x x
16 - 18 h x Prima x Prima x x Prima
18 - 23 h Čt 1 Nova Prima Nova Čt 1 Prima Nova
23 - 6 h x x x x x Nova x
SP Monday Tuesday Wednesday Thursday Friday Saturday Sunday
6 - 10 h Čt 1 x x Prima x x x
10 - 16 h x x x x x x Nova
16 - 18 h x x Nova x x Prima x
18 - 23 h x Nova Prima Nova Čt 1 Nova x
23 - 6 h x x x x x x x
TARGET GROUP
Age: 30+
Families with children aren´t our priority no. 1 anymore. Why?
Because children usually don´t like too much cacao in a chocolate, they prefer rather milk taste.
Focus rather on families with older children, single people.
Important attitudes/values:
People that prefer cacao taste (higher cacao share in chocolate).
People that are nationalistic, i.e. they are proud of the Czech nation and therefore prefer honest and traditional Czech products.
People that care about price.
People that can enjoy one piece of chocolate longer.
STRATEGIES
Focus on a shopper as well as a consumer (adults for themeselves, mums for their families).
We suppose that cooperation with customers isn´t our key issue.
PRODUCT
Address shoppers so that they would buy Orion instead of Milka.
Targeting:
People who buy chocolate randomly.
People who aren´t committed to any brand.
Approximately 40% f the Czech population.
It´s necessary to communicate especially chocolate advantages so that people could identify themselves with the brand.
Measures: Penetration (%)
Action plan: Change packaging design, uniform communication campaign (will be specified later).
PRICE
Pay attention to the current price of Orion BL in certain stores, it mustn´t be higher than the price of its biggest competitor Milka (supposed that none of them is in promotion).
This strategy is based on the fact that we have noticed in some stores that the price of Orion BL was higher than the price of Milka.
Action plan: Merchandisers have to watch out the price and inform the appropriate sales reps if necessary.
There is another question that we have to take into consideration:
Should Orion response to the reduced price of Milka if it is in promotion?
NO -> who likes Orion, buys it even for the original price.
If shoppers hesitate between Milka and Orion in promotion, those who always prefer Milka and those who buy chocolate randomly, buy Milka anyway.
PLACE
Definitely continue with the current level of distribution, further try to focus on new distribution channels.
Potential distribution channels:
Czech Airlines – sky shop
Trains – pendolino, EC, IC
Buses – Student Agency
Measures:
Number of the first trialists (SA)
Brand awareness (CSA, trains)
Action plan:
SA: hot beverages free of charge + small Orion chocolates (sampling + tasting) -> it would be also possible to buy chocolate here
CSA: possibility to buy chocolate in terms of a sky shop
PROMOTION
Convince shoppers/consumers so that they would change their perception about the quality of the brand Orion.
Measures: Brand health („spider“ – larger diffusion of key features)
Action plan: Excellent communication campaign (will be specified more deeply later)
TV spot – highlight positive results of blind tests
Spaceshow „Hvězdná koleda“ - chocolate tasting, blind tests
Consumer competition
Promo actions – eps. blind tests in stores
BRAND ESSENCE
Depicted in the form of the space galaxy
Consists of 7 main features
Tradition
Local aspect
Quality
National pride
Cacao taste
Experience/Enjoyment
Shopper/Consumer
PRE-EVENT COMMUNICATION
BILLBOARDS
where: the particular cities that are included in the roadshow
timing: 1 month before the spaceshow starts
Metro - Prague
Trams – selected bigger cities: Plzeň, Brno, Ostrava, Praha, Liberec, Olomouc
-> timing: always 2 months before the spaceshow starts
RADIO ADVERTISING
Radio Impuls – local (regional) radio broadcasting
5 times per day/ 3working days + Saturday/4weeks
costs: http://www.impuls.cz/text/cenik/32 (source)
TV ADVERTISING
2 types:
Shorter version
General commercial
Transmitted throughout the year
Length: 20 secs
Longer version
Adjusted general commercial
At the end there should appear a note about the upcoming event – Spaceshow „Hvězdná koleda“
List of cities where Orion trucks will arrive
Specific dates when they will arrive
„Come to convince yourselves to your cities.“ („Přijdťe se přesvědčit do vašich měst.“)
Length: 30 secs
Note:
MP – the period around the spaceshow
SP – the whole period of the year besides the period around the spaceshow
March + April: 30s – 20s – 30s – 20s (change of longer and shorter version of TV commercial)
November + December: 30s – 20s – 30s – 20s (change of longer and shorter version of TV commercial)
Months that are not related to the spaceshow: TV commercial as a support of brand awareness
MAIN EVENT
Orion Spaceshow – „Hvězdná koleda“
Key message:
„Come to enjoy long-lasting cacao taste!“ („Přijďte si vychutnat dlouhotrvající kakaovou chuť!“)
Description:
An event for the whole Czech Republic.
It will také place twice per year – in the periods of Easter and St. Nicholas Day.
Objective of the event:
To make a traditional communication tool from this event because in these periods the connection with chocolate adventures appears as very actual and practical (many chocolate figures are usually given out: chocolate bunnies, chocolate Nicholaseses and devils, Christmas callendars).
When?
April – Easter Monday (25/4/2011)
December – St. Nicholas Day (5/12/2011)
-> Start approximately 3 weeks before planned traditional holidays.
-> The entire event has to be tightly bound with traditional Czech holidays.
Where? (related only to one spaceshow)
18 Czech cities (2 trucks – 1 for Bohemia, 1 for Moravia)
9 cities in Bohemia
9 cities in Moravia
Planned schedule: bigger cities (weekends), smaller cities (week days) – one day for a transfer
Accompanying activities (related only to one spaceshow):
Orion truck – interior:
Chocolate production – process description, presentation in the form of projection
History of Orion – change of branding and packages throughout the years
Hostesses
Chocolate tasting
Blind tests
Racks with flyers (new consumer competition announcement, information + rules, prices)
The whole afternoon should be moderated by a testimonial.
Competitions for families, friends (unlimited regarding their age).
Selling stand – chocolates can be also purchased, especially thematic chocolate figures, callendars.
Consumer competition will be announced and initiated in terms of Easter spaceshow – important role of testimonial:
Competition will be officially published
Rules will be introduction
Flyers will be given out
SPOTŘEBITELSKÁ SOUTĚŽ
Name: „Koledování s Orionem“
Timing
Between Easter and St. Nicholas Day spaceshow
Rules
Competition will be initiated in the course of Easter spaceshow, all consumers will be asked to start collecting packages from Orion chocolates BL
Competition will be finished in the course of St. Nicholas Day, all consumers will be asked to personally hand over already collected packages at specially prepared stands in the particular cities.
Obviously we would like to involve consumers from the whole Czech Republic, therefore the competition will be communicated in the nationwide media.
Objective of the competition:
To involve not only particular consumers but especially entire families and their closer friends.
Prices:
25 pcs – Orion chocolate liquer
50 pcs – Orion desk game
75 pcs – Orion fondue set
For each 75 pcs of packages that will be handed over by a single consumer, or even better by a family, will be granted 1 lot, after the competition will be finished, all lots will be mixed and then 1 winner will be drawn.
Main price for such a winner: „Win for yourself, your family and friends a weekend stay at a cottage in the mountains!“
SALES PROMOTION
January: x
February: Lower price + Tasting with hostesses
March: 2+1 free
April: Easter promo action: 3 chocolates + special Easter package that consumers will be free to pick up at the information desk directly in a store
May: 2+1 free
June: Lower price
July: x
August: x
September: Lower price + Tasting with hostesses
October: 30 % for free (identified directly on the package)
November: 2+1 free
December: Lower price
EXPLANATION
Sales
2010: slide 22 (price elasticity Orion BL)
2011: it results from already defined objectives and goals for 2011 that we will be expecting a certain growth of the MS: 8,9% - > 12% = 3,1 p.p., which is 35% (in comparison to 2010 planned sales should be 100 milion pcs higher)
PFME
2010: an estimation which amount could be spent in 2010
2011: the amount that we would like to spend for our mrktg activities in 2011 (8,3% = 30 milions)
WEBSITES
Proposed content
Product portfolio
Information about ongoing competitions
Information related to other activities undertaken by Orion team (e.g. spaceshows)
…
STORECHECK
Important notes based on our observation
Price of Orion BL mustn´t be higher than price of Milka
we would recommend to send some sales reps to certain types of stores (esp. Billa) to check the price
Milka´s block of chocolates usually shines strongly (thanks to the colour of its packages) in comparison to Orion
we would recomment to redesign the package of Orion´s chocolates
Milka generally occupies more space in terms of secondary placement in stores
MP – the period around the spaceshow
SP – the whole period of the year besides the period around the spaceshow
MP – the period around the spaceshow
SP – the whole period of the year besides the period around the spaceshow
MP – the period around the spaceshow
SP – the whole period of the year besides the period around the spaceshow