Mc Planning 5c5018

THE INTEGRATED MARKETNG COMMUNICATION PLAN FOR MALIBAN BISCUIT MANUFACTURER (PVT) LTD

ASSIGNMENT MARKETING COMMUNICATION STRATEGY- MKM 4105

submitted by

M.I. Muhammathu Rizard Registration No: SEU/IS/05/MG/022 Index No: MG 0440

Lecturer: Mr. KM Mubarak, Senior Lecturer Director for IRQUE/LTS

Department of Management Faculty of Management & Commerce South Eastern University of Sri Lanka Oluvil

THE INTEGRATED MARKETNG COMMUNICATION PLAN FOR MALIBAN BISCUIT MANUFACTURER (PVT) LTD CONTENTS

Plan Titles 1.0 Vision, Mission Statement and Background to Maliban 2.0 The Concept of New Product Development for IMC 3.0 Executive Summary 4.0 Situational Analysis 5.0 Marketing Objectives 6.0 Marketing Communication Objectives 7.0 Segmentation, Targeting, Positioning and Value Propositions 8.0 Evaluating the competitive positioning for Maliban 9.0 Marketing Communication Strategy Plan 10.0 Budgeting and Implementation 11.0 Evaluation and Control

Vision, Mission Statement and Background to Maliban biscuit manufacturers (Pvt) Ltd Maliban Biscuit Manufactories (pvt) Ltd is biscuit manufacturing company in Sri Lanka over fifty years of success profile. In their vision, they simple say that to serve Sri Lanka, in this era and the next. How they believe to offer greater value is through the continuous value addition with new products with sophisticated target group in Sri Lanka and overseas market. They simply communicate with Tag Line such as “Inspired of goodness” in each and every communication whether it may be advertising, sales promotion, PR etc emphasizing how well the Maliban is successfully associated with customers who feel stronger loyalty products and its quality of biscuits. They cater in to Sri Lanka market and overseas as well. The different product line of Maliban such as Cracker, Savoury, Sweets, Creams, Assortments, Cookies, and even private labels have targeted sophisticated customers through 74000 outlets in Sri Lanka and it has strong export marketing even in international markets.

The Concept of New Product Development for Integrated Marketing Communication New products Development (NPD) As Maliban has been doing continuous research in customer satisfaction, they found the gap and the market opportunities for Cracker which means there are two products in the Cracker product line available such as Bran Cracker and Cream Cracker for the market in Sri Lanka. The elder people even youngsters too want the Cracker biscuits as their diet conscious. So this is a fantastic opportunity for Maliban where they can exploit this opportunity to grow up the biscuits market.

What value proposition for NPD….. Obviously we have two Crackers; the first one is Bran Cracker which is valued by healthy food but not diet conscious. Another Cracker is cream which is not too absolute diet conscious biscuits. For this therefore we have decided to go for new product development on diet conscious biscuits for this purpose we have to make the ingredients using fresh and green vegetables which could offer the Galore, protein and energy to refresh the body fell on tired. The Cracker brand “Green Veg Cracker” which has different pack sizes, is a new product that Maliban is going to launch. Justification for new products… •

The major competitors such as Munchee, Britania have been doing new product development at time to market. So Maliban also needs to NPD as to get the competitive advantage over the tide competition in the biscuit market.

•

As primarily targeting elder people who are aged 45 years, Sri Lanka has high aging population, especially in rural areas.

•

Maliban so far does not offer any diet conscious products to the market where it has lots of potential to exploit.

Executive Summary This Strategic Integrated Marketing Communication Plan provides very key snapshots for the Maliban Company especially for the new product concept called “Green Vegy Cracker” covering for six months period starting on January to June 2010. Marketing Communication strategies said in this documentary are very specific and contextualized for the case of the company. Furthermore, the company needs to think of some emergent strategies which are not covered in this plan to have sustainable competitive advantage and the probable success rate in implementing this plan.

Situational Analysis Micro Environment Bargaining power of supplier Probably the bargaining power still remain high because they keep the relationship with suppliers in international context, so being Sri Lanka like small quantity of purchase can not have the power to keep with Maliban. But for some of ingredients supplies the Maliban Company keeps its power over supplier as they have having the s in Sri Lanka context. Bargaining power of Customers For individual customers, the bargaining power retains still low and the company’s branding, product value proposition plays a major role in having the bargaining power with Maliban Company but as this company moves to some of the B2B customer segments like supermarkets, restaurants and big hotel, they have some struggling to keep the bargaining power with them and some powerful B2B branding campaign, personal selling and key management campaign needed for the Maliban Company. Threats of New Entrance From Sri Lanka context, it will take long time to establish a biscuit company locally but if we think of the international and global context, we have to be aware of some international prospects such as acquisitions, merging situation and other forms of t venture which directly come into Sri Lanka for starting the business. Threats of Substitute Lots of substitute products are available for the biscuit market, such as snacks, chocolates, etc. how the Maliban company will tackle the situation of over substitute products is through continuous value addition and proper value propositions of offerings.

Competitions amongst rivalry Tiger and fierce competition taking place on the biscuit market, although company manages through the situation of increased value proposition and continuous new product development.

Macro Environment PEST Analysis Political and legal

Economical

Socio cultural

Technological

Environmental

Reduced GSP+

Aging Population

Customer preference

regulation for

on direct marketing

packaging Govt. Restriction to

Increased per capita

Modern lifestyle of

do business for some

income

young people

High inflation

People move toward

Green packaing

countries Trade Barriers SAARC, NAFTA Political Instability

Diet Conscious Increasing taxes and

Official and

tariffs

unofficial uses of biscuit

Marketing Objectives for Maliban •

To get the 10% sales in total cracker biscuit market in 2010 and increase 5% sales volume sold in each month in Green Vegy Cracker.

•

To get 15% share of market for Green Vegy Cracker in the cracker biscuit market.

•

To stimulate trail purchase by 35% and repeat purchase by 13% by offering incentives that encourage brand switching in 2010.

Marketing Communication Objectives

•

To make the brand awareness by 40% in 2010

•

To bring the Green Vegy Cracker Brand as top of mind brand in 2010 at least in 50% of target audiences.

•

To create positive word of mouth about the brand “green vegy cracker”, nationally.

•

To make 50% of brand awareness amongst opinion formers (doctors, health Dept who recommend the product to be diet conscious) in 2010

•

To have the partnership with Department of Health, Health Centers, and Spas etc to educate the diet conscious concepts to people how it is important to keep health sustained. Accordingly Maliban can receive 5% of potential customer through the program.

•

To go for CSR projects in charities, not for profit organizations which are concerned about health in 2010 to create public awareness

Segmentation, Targeting, Positioning and Value Propositions

Market Attractiveness

UNATTRACTIVE

AVERAGE

ATTRACTIVE

WEAK (9) AVERAGE

(2) (7)

(6) (8)

STRONG

(10)

(5) (3)

(4)

(1)

Current & potential Strengths in serving the segments

Demographic Segmentations (1) Individuals aged between 40-55 years who are with children (6+ member family size) (2) Individuals over 55 years who are left children (3) Individuals over 55 years who are with children (3-5 ) (4) Working professional aged 25-40 years of age who are concerned of diet conscious. (5) School students and undergraduates Geographic segmentations (6) Urban , suburban and Rural (7) Provincial segments( Western, Southern, North and East) (8) International Market Export marketing Psychographic segmentations (9) Individuals who want to change diet conscious life style (10) Individual who go for and quality biscuits brands in Cracker product line. Positioning for Green Veg Cracker Diet conscious

DIET CONSCIOUS

Green Vegy Cracker

Tas te

Delicious Taste (sweet) Veg Taste

Non- Diet conscious

Evaluating the competitive positioning for Maliban Biscuits Competitor Analysis Thirty Six players are in the biscuit market, where each player’s products gives competitive threatening to our company, therefore we need to have strategic competitor positioning and analysis against to our key competitors in order to achieve the competitive advantage. Here I consider to not all the products of Maliban Biscuits but it is specifically designed for “Green Veg Cracker” Brand Analysis Munchee, Britannia, Horlicks, Maam are the key competitors for our Maliban biscuits. Out of these key competitions, Munchee gives greater retaliation for our biscuit market. Furthermore they have edged over the diet conscious biscuit market by plugging into new product development such as Herbal Brand- Karapincha Cracker. No other biscuit companies have moved into diet conscious biscuit market than Munchee which is a greater potential for Maliban to go for the new product development. In any case, we need to put some of the brand switching strategies of getting competitors’ customers, market penetration strategies for our Brand called Green Veg Cracker. Value proposition and Perceptual Mapping for competitors Brand The perceptual mapping coming below, which covers the positioning of Green Veg Cracker and other biscuit brands of competitors, is given below. Diet Conscious DIET Horlicks Biscuits Contains Calcium Green Veg Cracker

Karapincha

Super cream Cracker

Rich Cashew Cookies T A S T E

Gluco Fit

Orange Cream Smileys Veg Taste

Delicious Taste (sweet) Milk Cream Smileys Milk Bikis Mango Puff Non- Diet Conscious

--- Maliban --- Britannia --- Muchee --- Maam --- Horlicks Value Proposition of Competitors’ Brands Britannia Biscuits This is a brand originated from India and they have licensed to Lucky Land biscuits manufacturers operating in Sri Lanka market. They propose value added with their products through the Quality concerned, and nutritious biscuits to the customers. They communicate with their ment that their biscuits are reducing the fat of consumers through the concept called Zero Trans Fat. But they are not proving cracker biscuits to market. We do not need to with their customers for cracker biscuits and moreover it would be great advantage for our company. Munchee Biscuits Munchee is a reputed brand in Sri Lanka having more market share and market leadership in the biscuits market. Value propositions through various product lines of biscuits are all about tasty, quality and nutritious biscuits to the customers. Munchee is all about having greater emotional touch with customers by pertinent USP in the market and continuous new product development in its product lines, whereas they have cracker biscuits product line even focusing on diet conscious products such as Karapincha. Maam Biscuits It is a biscuit brand having a reasonable market share and dominance in the market. But they mainly focus on cream biscuits, moreover they also focus on the nutritious biscuits but they have less USP with their products. Horlicks Biscuits Horlicks with one variable offers the nutritious and tasty biscuits targeting all type of age group in the biscuit market. In their value proposition, they say that one pack of Horlicks biscuits contains calcium of two glasses of milk.

Value Proposition for Green Vegy Cracker According to the market conditions, we found that some of the value propositions we need to offer to the customers to get associated with our brand. These days our marketing strategies are just offering new products with various products attributes and features, and communication also would be very specific and focused to customers. We believed that diet conscious products will work on the phenomenal consumer behavior as we found the gap in the market and we are planning to do the NPD in flavors As we want to position our brand in the consumer mind as full of goodness in high diet conscious and high Vegy tasty, we are proposing our value proposition statement as follows ”green vegy cracker offers to the customers who need the diet conscious, healthy food targeting elder people and professionals as well to make lifestyle happy feeling relaxation and shape their health with this product”

Communication Mix for Green Vegy Cracker The Concept of “through the line” which is combined of ATL and BTL communication mix strategy would be considered for the Green Vegy Cracker. As our product is new to the market, we mainly focus on creating the awareness concept which is extremely useful idea to improve our product performance at the initial stage.

Advertising (% of Importance for Maliban Green Vegy Cracker is 50%) Advertising objectives From the set objectives of marketing and marketing communication objectives, this advertising will help to go for achieving 1. To get the 10% sales in total cracker biscuit market in 2010 and increase 5% sales volume sold in each month in Green Vegy Cracker. 2. To make the brand awareness by 40% in 2010 3. To successfully penetrate the elder target audience, who are not diet conscious, into diet concerns and vegy tasty preferences by 25% (customer acquiring) in 2010. 4. To make 50% of brand awareness amongst opinion formers (doctors, health Dept who recommend the product to be diet conscious) in 2010

In Advertising Mix we consider various mode of Advertising from fragmented media tools such as TV Ad, Radio Ad, Magazine Ad, Press Ad, Web Ad, Ad on Search Engine Marketing like google, yahoo etc ment Tools Out of objectives we set for our brand, The TV ment, Radio ment and Press ment will help to achieve the 1st and 2nd objectives at overall level specifically. The 3rd objective that is getting non diet conscious customers for our brand and for the objectives of 50% brand awareness amongst opinion formers, the Magazine ment and ment on Search Engines will work. The Justifications for TV Ad and Radio Ad It is big source in the marketing mix for creating the awareness level where it covers large audience and mass –marketing coverage. When we use this tool we offer to the customers about the emotional feeling, sound about the brand especially how well Green Vegy Crackers will be helpful to make body shape, live healthy etc, it is comparatively low cost per exposure, but overall cost is very high. When we consider the Radio Advert, it is comparatively less cost than TV advert but emotional aspects as such we produce in the TV advert, we cannot create in Radio. Evaluating the effectiveness of this TV and Radio AD Peoples’ Meter is useful instrument to measure the people who are watching the TVs, then we could understand what channels most of the people look for, how they switches to channels, what time mostly they watch TVs etc. The Justifications for Press Ad Why we consider this press Ad is that large portion of Press Audience is elder citizen in Sri Lanka. So if we target press Ad for little concern we could reach the audience attention fairly. So the page, coloring, size of Ad are very important factors to create the attention of audience of Press Ad. It has good timeliness that means it could be used as for long time reference, and higher market believability, and it is local market coverage. Evaluating the effectiveness of Press Ad

The readership research on Press habits of people would be useful for evaluating how people have the habits of reading news papers, what side they mostly give the preference to read, etc. The Justifications for Online Ad and Search Engine Marketing Though Internet comes under the new media, we are considering this here because it creates the awareness as advertising. The ment on Search Engines would create the brand awareness of many people and the ad on the company’s websites would create big impact on it. It will enable to achieve our objectives of communications in which we could achieve the brand awareness amongst opinion leaders and formers and Public brand Awareness. Comparatively to all media options, it is very low cost practice for the company and superb interactive with the customers. Evaluating the effectiveness of Online and Search Engine Marketing The hit of customers on our links which we have d on other company websites and search Engines will show the indicators of understanding the awareness of customers and their reach. Hoarding Ad Hoarding Ad of Maliban about the Green Vegy Cracker in major cities where people interact often, and some other central location would be useful concept to create the brand awareness for product. In addition we have to consider the wording in Hoarding Ad, the attractive colors, Quality Measures of Maliban Product like SLS, ISO certifications; the clear Tag Line etc must be considered. The poster Ad also we can take into for creating the positive word of mouth and awareness. But the crucial is that wherever we are putting our poster we need to consider the Language. Media Scheduling Vehicles News

Timing in

TV

Frequency

channels 30 seconds Ad during the 2 times run the Ad during the

(Rupavahini, Shakthi, Sirasa, Break, Sponsor for Local news Swarnavahini, Eye Channel)

News. 1St 3 months after product launch

Tele Dramas (Rupavahini, 1st 4 months after product 4times runthe Ad durng the

Shakthi,

Sirasa, launch

Dramas

Swarnavahini, Eye Channel) lifestyle Magazine- very eye catchy picture, quality colors, News in the Radio Channels

20 second Ad

at the start of the news and end of the news.

In overall, if we are able to do the customer awareness research after all implementations of Advertising methods, we would understand the measure of awareness level of customers

Sales Promotions (% of Importance for Maliban Green Vegy Cracker is 08%) Our company has to consider the promotions to retailers as well consumers. Sales Promotion objectives -

To stimulate trail purchase by 20% and repeat purchase by 13% by offering incentives that encourage brand switching in 2010.

-

To increase the Usage of Maliban Green Vegy Cracker amongst consumers.

The Promotions to retailers (Trade Offers) o DiscountsFor supermarkets, retailers, the company will offer 12% and 10% of discount respectively at the initial stage of Maliban Green Vegy Cracker o Sample offers launch a campaign from Maliban company covering to small villages and Rural areas giving free sampling of Maliban Green Vegy Crackers. it should be done by selective areas. o Merchandising materials and point of sales materials Offer name board for retailers, install point of sales materials in the supermarkets such as Cargills, Arpico Super Centres, Keells Super and other emerging supermarket.

The Promotions to consumers (Consumer oriented Offers) o Samples for selected locations Giving free samples of products to retailers to get the trail of our products for consumers- offer 50 packs of Maliban Green Vegy Crackers to the retailers nationally, this sample offers must be bounded for 2 weeks after the very first product launch. o Coupons Send coupons and prize draws with Maliban Green Vegy Crackers for 3 weeks after product launch. o Loyalty Programs Offer every supermarket about a Card which has very nice colorful printing of Maliban Company Logos, Branding, and give those customers who come to supermarket with a RS: 100 hips and if the customers again they purchase, they will get some points where they can go for bulk purchase of Clothing at Fashion Bug. At the introductory stage, the company cannot offer the highly focused sales promotions until it to reach the right target audience. Furthermore, if the company offers the discounts to customers, that absolutely means to they are killing the brand. Evaluating sales promotions Consumer Audit: it is a research Method where a research representative will visit go to sample households and get the understanding of their attitude, behavior, preference about biscuits especially Maliban Green Vegy. Sample size must be matched with target audience. Actual Sales: comparison between Pre sales and Post sales by the sales promotions Retail Audit: like what we have evaluated through Consumer Audit, we have to do this one too. of Sales People: Sales forces are directly having close relationship with customers then our company can expose our sales people with customers and get things done.

Redemption rates of Coupons: from the reductions of Coupon that have been sold we could evaluate the effectiveness of sales promotions

Public Relations (% of Importance for Maliban Green Vegy Cracker is 15%) Objectives of Public Relations •

To go for CSR projects in charities, not for profit organizations which are concerned about health in 2010 to create public awareness

•

To have the partnership with Department of Health, Health Centers, and Spas etc to educate the diet conscious concepts to people how it is important to keep health sustained.

•

To create positive word of mouth about the brand “green vegy cracker”, nationally.

Tools of PR •

The press leases and media briefing about our product launch, it features and attributes, the variables (Flavors) and pack sizes, the distribution channels etc could be taken to to create positive word of mouth amongst our target audience.

•

Web forum in our websites for our customers

•

Advertising on Social marketing Media such as Facebook, My Space, digg etc to have the social interactions in order to create public awareness

•

Endorsing the celebrities such as the cinema stars who have succeeded life in their career and living at the elder stage.

Evaluating the PR •

Assessing the Media Coverage for particular campaign

•

Research Stakeholders in of awareness and attitude, over the time concerning PR

•

Evaluation of Share prices

•

Ratinga (super brand. Fitch rating, SLS, ISO etc)

Direct marketing (% of Importance for Maliban Green Vegy Cracker is 20%) Objectives of Direct Marketing •

To penetrate the mobile and SMS marketing for 45% customer group to educate the diet conscious and Green Vegy Cracker.

•

To make 50% of brand awareness amongst opinion formers (doctors, health Dept who recommend the product to be diet conscious) in 2010

Tools of Direct Marketing Direct Mailers for elder people and professionals who made their busy lifestyle and needed for diet conscious The newsletters and brochures about the danger of non-diet products and its conscious and say in that how Green Vegy Cracker is so useful in offering the value for keeping the diet conscious Evaluation of Direct Marketing •

Response Rate from Direct mailers

•

Conversion Rate; the responses to sales

•

Order Value

•

Cost per /inquiry/sale

•

Click through rates (in maliban websites)

Personal Selling (% of Importance for Maliban Green Vegy Cracker is 3%) Send our sales people for the Supermarket chain and talk with senior managers about the USP and attributes because 20% of supermarket chain will give approximately 80% of sales revenue. Then ask them to put in their supermarket shelf. Likewise, we have to send our Key Managers for specified business organization to have the Green Vegy Cracker for their parties, special occasions, conferences etc. Exhibition (% of Importance for Maliban Green Vegy Cracker is 2%) Put our brand in the tradeshows and get the attention of the audience. Sponsorship (% of Importance for Maliban Green Vegy Cracker is 2%) The sponsorship like sponsoring in Sports, Exhibitions will communicate with our brand about the good performances.

Evaluation and Control

Balance Score Card Financial Perspective Goal

Measure

To measure the income of Green Vegy

ROCE –

To understand the profitability of Green Vegy

Operating Margin at the income statement

Customer Perspective Goal

Measure

To understand the customer satisfaction

customer satisfaction survey /index

To know how many customers switched their

customer acquisition survey

brands To get the market positioning

market share analysis

Internal perspective Goal

Measure

To understand our product portfolio worked

%of sales from new products/each product category

To control the stock efficiency

Inventory management

To prove the quality standard

Quality indicator (ISO 9000, ISO14000)

Innovation and Learning Perspective Goal

Measure

Less defective products

CAM, CAD manufacturing system

Productive manufacturing

Just in time

Reference:

Google Search Marketing Communication book; official CIM book