Fiscal Marketing Strategic Plan
Graham Boden : ProVance Consult
Marketing Plan
• Market Overview
• State of the Business
• Competitive Review
• Consumer Insights
• Learning and Implications (SWOT)
• Brand Architecture : Positioning
– Product Attributes, Functional and Emotional Benefits
• Marketing Objectives
• Marketing Strategic Thrusts
• Marketing Plan – Initiatives for Execution
• Communications Strategy
Market – Exec Summary
• Retail factors
• Communicate your Brand to consumers
• Collaborate with the retailers effectively
• Monitor Competitor activity & spend
• There is no HCP recommendation, and decisions
can be influenced at shelf.
• Brand awareness and equity are critical to the
retail shopper.
• Top 30 KVI’s need to be in stock at all times
• Retail product churn
• Pharmacy
• Growth opportunity as availability is heightened
• Brands that are growing :
• Have premium packaging
• Are building and reinforcing brand efficacy
• Are recommended by HCP and switching
takes place at the shelf
• If you don’t build the brand, you “play” the
lower price, value game
• Competitor advertising in front shop
Market size = R2, 5 billion (vitamins & minerals)
Retail market = R1, 35 billion ( 54% ) : + 10 % growth(Aztec, Dec 2012. Mat)
Pharmacy market = R1,15 billion ( 46% ) : + 39% growth(IMS, 2012)
• Reduction in the number of sku’s : focus on a smaller, more profitable range. Less Clutter• New products into categories that are differentiated and show growth opportunity
Major trading dynamics for SA Retailers
Shifting Route-to-MarketOperating models have to be re-thought in
response to the multi-format, multi-channel impact on RTM
New Formats, Channels
and CategoriesIncreasing pressure for seamless multi-channel engagement -‘Omni-channel’
strategy
VALUE !Economic pressure + competitive
landscapeAcross new categories, new segments,
and new products
Ongoing focus on supply chain
efficiencies
Shopper experience/ engagement Stores have to provide more – creative /
innovative / connecting experience720 degree communication
Brands and product showrooms
Explosion of online /social media- moving fast : Shopper journey / behaviour
shiftingSmartphones emerging as the most dominant
consumer technology platform
Key Stakeholder engagement &
collaborationJoint Business Planning critical to growth
Integrated Sustainability on the
agendathe measured scorecard + so-called
'benefit brands'
Back to Basics
An informed, demanding shopper who expects Quality, Price, Availability,
Knowledgeable Staff
Retail Services innovationValue Added Services a valuable source of
revenue and shopper attraction tool
Increasingly competitive landscapeBoth physical (sharp local players) and
online
Data and Information Overload Data availability increasing
Challenge of data to shopper, brand and category insight - Data analytics no longer
a nice-to-have ! MUST
Total South African population - 52 million
Total S A adult population (16+) - 35.3 million
Women in South Africa (16+) - 18.6 million
LSM 6 (16+) - 3.2 million
LSM 7 (16+) - 1.8 million
LSM 8 (16+) - 1.1 million
LSM 9 (16+) - 1.1 million
LSM 10 (16+) - 0.9 million
TOTAL 8 - 10 (16+) - 3.1 million
SOLAL target (35+) - 1.4 million
SA Demographics
Viable market
November 2011 TPM, IMS data
Market Analysis – Nov 2011
Market Analysis – Nov 2012
Has experienced the biggest growth from 18th to 11th
Has also grown into the top 20
Pharmacy Sales Trend : Feb ‘11 – Aug ‘13
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Aug 2013Jan 2013
April 2012
Jan 2012
Aug 2011
Aug 2012
SOLAL Trend Value R’s
Sales trend – Solal Top 10 Products
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000A
ug
Sep
t
Oct
No
v
Dec Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
Sep
Oct
No
v
Dec Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
MELATONIN
KRILLOIL NEP OMEG3
5-HTP
DHEA
3 PER DAY
VITAMIN D3
CHOLEST-AWAY
STRESS DAMAGE CONT
CHROMIUM POLYNIC
IRVINGIA FAT BURN
August 2011 – August 2013
Units / Volume
Top 20 CompaniesMANUF MAT 2010 MAT 2011 GROWTH MAT 2012 GROWTH %CAT
Adcock Ingram Co 178 872 544.00 195 144 976.00 9.10 198 947 328.00 1.95 14.76
Vital Health Foods Co 144 887 184.00 143 457 216.00 -0.99 138 246 448.00 -3.63 10.26
Clicks Brand Co 89 219 448.00 109 931 024.00 23.21 124 525 968.00 13.28 9.24
Bayer Co 90 331 912.00 93 186 576.00 3.16 99 096 256.00 6.34 7.35
Wyeth Co 73 902 368.00 90 695 832.00 22.72 96 796 256.00 6.73 7.18
Herbex Cc Co 32 395 000.00 42 507 184.00 31.22 61 663 196.00 45.07 4.58
Usn Co 36 277 212.00 42 125 188.00 16.12 48 756 032.00 15.74 3.62
Pharma Natura (pty) Ltd Co 45 970 132.00 50 567 364.00 10.00 47 823 980.00 -5.43 3.55
Nativa (pty) Ltd Co 32 986 696.00 36 436 912.00 10.46 41 381 908.00 13.57 3.07
Bioforce S A Co 15 695 761.00 23 165 952.00 47.59 32 747 850.00 41.36 2.43
GSK Co 23 613 092.00 28 404 184.00 20.29 32 393 230.00 14.04 2.40
Pharma Choice Co 24 248 066.00 25 123 476.00 3.61 25 950 886.00 3.29 1.93
Value Added Life Co 13 815 814.00 17 607 162.00 27.44 24 824 632.00 40.99 1.84
Arctic Healthcare Co 17 579 562.00 20 548 334.00 16.89 23 492 430.00 14.33 1.74
Boehringer Co 17 045 712.00 19 199 058.00 12.63 22 110 246.00 15.16 1.64
Abbott Laboratories Co 17 612 490.00 19 341 904.00 9.82 20 172 744.00 4.30 1.50
Solal Tech Co 1 861 820.00 7 168 443.50 285.02 19 907 420.00 177.71 1.48 Georen Pharm Co 12 706 382.00 14 990 313.00 17.97 19 903 686.00 32.78 1.48
Aspen Pharmacare Co 23 248 464.00 19 254 354.00 -17.18 16 956 798.00 -11.93 1.26
Cipla Co 10 015 998.00 13 845 920.00 38.24 16 485 551.00 19.06 1.22
WE Need to Invest in line with Major competitors
We spend: R6 million on 120 products
Centrum spends R3million for printing JUST POS MATERIAL
Caltrate spends R3 million for 2 TV Bursts
Top 20 Brands
BRAND MAT 2010 MAT 2011 GROWTH MAT 2012 GROWTH %CAT
Vital 144 887 072.00 143 456 752.00 -0.99 138 246 448.00 -3.63 10.26
Clicks Brand 89 219 448.00 109 931 024.00 23.21 124 525 968.00 13.28 9.24
Centrum 54 289 048.00 66 130 476.00 21.81 71 827 928.00 8.62 5.33
Herbex 32 395 000.00 42 507 184.00 31.22 61 663 196.00 45.07 4.58
Berocca 45 127 984.00 51 788 788.00 14.76 58 365 412.00 12.70 4.33
Usn 36 277 212.00 42 125 188.00 16.12 48 756 032.00 15.74 3.62
Bio plus 25 198 680.00 29 988 838.00 19.01 35 346 876.00 17.87 2.62
Scotts Med 23 613 092.00 28 404 184.00 20.29 32 393 230.00 14.04 2.40
Probiflora 29 204 666.00 31 907 160.00 9.25 31 748 514.00 -0.50 2.36
Unique Formulations 25 682 630.00 30 038 654.00 16.96 29 246 052.00 -2.64 2.17
Cal-C-Vita 28 386 240.00 27 377 476.00 -3.55 28 696 142.00 4.82 2.13
Caltrate 19 613 316.00 24 565 356.00 25.25 24 968 326.00 1.64 1.85
Vitaforce 20 444 978.00 24 426 596.00 19.47 21 733 492.00 -11.03 1.61
Bio-Strath 10 577 795.00 13 566 974.00 28.26 21 489 440.00 58.40 1.59
Procydin 12 978 369.00 14 383 440.00 10.83 21 252 866.00 47.76 1.58
Ensure 17 609 828.00 19 340 856.00 9.83 20 172 744.00 4.30 1.50
Solal 1 861 820.00 7 168 443.50 285.02 19 907 420.00 177.71 1.48
Georen 12 706 382.00 14 990 313.00 17.97 19 903 686.00 32.78 1.48
Bettaway 19 503 834.00 19 373 206.00 -0.67 18 747 144.00 -3.23 1.39
Vita-Thion 13 935 330.00 14 204 575.00 1.93 17 947 862.00 26.35 1.33
Its Clear that investment in consumer and customer campaigns will drive growth in the category
eg, Huge growth in smaller niche products eg,Procydin & Biostrath can be seen from a 50% incr in spend
SwitchInvestmentInvestmentInvest
Invest
Invest
Invest
Invest
Vitamins sub-Category : Market size
Value Value Growth % YA Value Share of Total Vits & Supps
TOTAL MARKET MAT To 2011 MAT To 2012 MAT To 2011 MAT To 2012 MAT To 2011 MAT To 2012 DYA
Total Multivitamin 372 346 720 395 479 136 10.8 6.2 30.3 29.3 -1
Total Vitamin C 24 403 062 23 354 554 -3.7 -4.3 2 1.7 -0.3
Total Vitamin B 16 575 098 16 367 481 9.9 -1.3 1.3 1.2 -0.1
Scorbex (No 1 Vita C) 2 098 882 1 848 061 -6.2 -12 8.6 7.9 -0.7
*Aztec
• Total market shows growth from the increase in the multivitamin segment
• Single-shot vitamins declining in units (+ price incr) as consumers switch to combination products (convenience - fewer pills to swallow)
• Vita B Co is still performing relatively well on a value basis in a declining volume market. Energy / stress.
• Vita C category is over-traded with generics /DOB
Vitamins & Supps Competitors 12 months (Aug 2013)
JOHNSON & JOHNSON 219,745,860
BAYER 105,018,267
ASPEN 62,028,870
MERCK KGAA 59,266,772
VALUE ADDED LIFE 72,933,618
NOVARTIS 28,479,069
GEOREN PHARMACEUT. 22,670,095
VITAL HEALTH FOODS 20,962,919
SOLAL 20,021,531
BOEHRINGER INGEL 19,097,797
ADCOCK INGRAM 17,317,989
GLAXOSMITHKLINE 20,494,307
PHARMAFRICA 17,146,553
CIPLA MEDPRO 11,399,439
ARCTIC PHARMACEUT 9,960,265
IMMUNADUE HERBALS 11,330,460
9th
2011 Majors : store numbers by retailer
Retail Index Universe Update Page 14
4,5%
20
25
13
7
32
0
33
3
16
9
15
6
22
2
33
3
22
8
42
0
80
20
26
14
4
32
6 3
57
18
1
15
6
22
3
33
2
25
8
43
6
93
-
50
100
150
200
250
300
350
400
450
500
Pn
P H
ype
rmar
ket
Ch
eck
ers
Hyp
er
Ch
eck
ers
Sho
pri
te
Clic
ks
Dis
com
Pn
P S
up
erm
arke
t
Pn
P F
amily
Wo
olw
ort
hs
Sup
ersp
ar
Spar
Gam
e/D
ion
Major store nrs by Retailer
2010 2011
Retail Index Universe Update Page 15
2012 Majors - Retailers by region
•Note: This is a live universe for scanning chains and store numbers will vary from month to month
EC FS GT KZN MP NW NC LP WC Oct '12 Dec ‘09
PnP Hypermarket 1 1 13 2 1 2 20 25
Checkers Hyper - 1 15 4 1 1 - - 4 26 20
Total Hypers 1 2 28 6 1 2 - - 6 46 45
Checkers 21 6 45 24 7 2 4 5 30 144 137
Shoprite 33 18 83 48 26 18 9 23 68 326 320
Clicks 35 15 144 47 20 17 4 10 65 357 333
Discom 19 8 49 29 19 7 7 14 29 181 169
PnP Supermarket 10 7 60 24 7 4 - 5 39 156 156
PnP Family 14 7 91 22 23 9 5 13 39 223 222
Woolworths 19 8 152 46 15 10 3 10 69 332 333
Superspar 41 3 69 54 20 10 2 20 39 258 228
Spar 54 34 125 70 31 27 11 15 69 436 420
Game/Dion 4 4 36 17 5 5 2 4 16 93 80
Total Supers 250 110 854 381 173 109 47 119 463 2,506 2,398
Total Majors 251 112 882 387 174 111 47 119 469 2,552 2,443
PLUS +
• Education around use of vitamins & supplements
• Consumer receptive to a more healthy lifestyle
• Noise in Media – information to assist with self medication
• Heavy investment from key players, who drive involvement of consumers and growth of category
• Different forms of offering (Tablets, Effervescent)
MINUS -
• Potential belief that fortified food with vitamins is sufficient
• Healthy levels of investment are directly related to volume and value growth and associated with Awareness – TV brands are leaders and they follow up with in-store activity
• Clear strategies and strong marketing campaigns have rewarded competitors with good consumer loyalty, trial and TOMA, with ROI of market share growth
• Continuous monitoring of Quality / Price points and quick reaction (Caltrate, Centrum) ensure market position is well defended
What has driven or limited growth for competitors?
• Vitamins education is improving - all players need to educate to attract users
• Market is receptive to new products that work at good prices (research)
• DOBs are promoted by front shop staff (incentivised)
• Brands Must engage with consumers and create TOMA vs competitors. Must make an impact !
• NPD should be in response to consumer/ category needs – can we create more gaps ?
• Great opportunity area : To Own innovation platform
Implications for Growth Plan
• 2012 Investment provided ROI for SOLAL
• ROI / Continued growth will be effective if regular media education and communication to consumer is maintained
• Must create an Emotional connection with SOLAL to break ties with competitor brands and create opportunities for switching through trial
• Position SOLAL as Aspirational, but monitor the price variance.
Implications for Growth Plan
What has driven or limited growth for the Category?
Category Performance
MINUS -
• Presence of multivitamins, instead of single dose.
• Negative Publicity around absorption and bio-availability
• Cheaper alternatives devalue the category and leech off brand investment claims by incentivised switching at shelf
• Cheaper brands erode brand value and premium category
• Prevention mentality needs education : Perception change
• Awareness of contents in Multivitamins has driven consumers / convenience
• FMCG Retail distribution is limited due to the size of the category.
• Increase of in-store pharmacies is changing the landscape
What has driven or limited growth for competitors?
• SOLAL reduced spending : Need to create more hype around “healthy aging” - take a market leadership position.
• Invest effectively and the effect on brand volume and value will be easy to see as new users buy into the brand offering / Value prop.
• Accelerated launch of New innovations – be First to market !
Implications for Growth Plan
What has driven or limited growth for the segment?
Analysis & Conclusions
Consumer Insights : Brands in Vit & Supp
Source: eighty20 AMPS Data
RankWhich one brand of vitamins/supplements
do you buy most often? Total
1 Cal-C-Vita 14.52%
2 Berocca 12.52%
3 Bio plus 12.37%
4 Centrum 10.11%
5 Herbex 6.05%
6 Vital 5.55%
7 Turbovite 3.05%
8 Natures Health 2.87%
9 Scott's Emulsion 2.87%
10 Spirulina 2.16%
11 USN 1.68%
12 Bio-Strath 1.64%
13 Caltrate 1.58%
14 Ensure 1.52%
15 Bettaway 1.31%
16 Supradyn 1.18%
This data is based on LSM 5-10 and based on
Metropolitan Areas
Commercial Integration
Consumer
Manufac-turer
Distributors
Retail Channels/ Sales team
In storeShopperinterface
ConsumerDemandinterface
Businessinterface
Partnerinterface
POP Contact
System Efficacy
Strategic Alignment is KSF to Demand generation management
How strong is the brandValue prop ?
Brand strategies : Brand Needs to ‘come to Life’ in store
Customer engagement /trade participation
Channel strat, promos, merchandising
Influence shopper purchase decision
Convergence of consumer, retailer and manufacturer
Channel plans –Where to focus,
Play and Win
Ideation
Innovation
Project Management
Capable partners
Brand Strategy & Connections
Brand comm.
Internal Comm
Trade Data
Expert and consumer insights
Concept testing
Business Development
External Networks
Distributor Management
PeopleCapabilities
Strong Brand Driven Business
Brand Growth and Equity StrengthValueProposition
BrandLeadership
SuperiorProducts
CustomerLoyalty
StrategicInnovation
Marketing & Key Acct
Excellence
BusinessIntelligence
Distribution Channels
GrowthStrategies
New Product Development
Strategic Vision
Product Claims Development
SKU Rationalisation
ProcessExcellence
Corporate Brand Strategy
ATL/ BTL focus
Increased Investment
Customer/Trade Marketing
Sales Excellence
Consumer and shopper understanding
Expert / HCP understanding
Business Opportunities ; Partner Search
Available to more consumers
FMCG/ Pharmacy Collaboration
Commercial Integration / Business matrix
Seamless supply
Satisfied customers
Availability and accessibility
Highly Skilled, Motivated and Committed Marketing Team
Where are we now ?
SOLAL :
Situational Analysis
Financial Objective
Goals F13 (mil) F14 (mil) F15 (mil)
Sales R166 R194 (+17.3%) R 225 (+15%)
Rebates R11 R15
(7.55% of sales)
R20
Revenue R155 R180 R205
Brand Growth Waterfall
Notes
• Niche Market will show growth with investment and education.
• Competitive brand support in broader category will affect consumers
• Improved distribution in pharmacy, Clicks, Hypers will result in increased sales and Brand power claim
• Innovation is expected to increase both trial and consumption.
SOLAL : Growth Priorities
2013 New Products CompetitiveActivity
Merchandising/ Packaging
BrandAdvertising
Retailer support 2015
7
190 7.6 -1,2 4.6 11 6 225
Distribution
Implications for our
Growth PlanWhat’s worked /not worked in the past year & why?
Growth Performance Review
Impact on growth in the
last year
Connections
Expert
Positioning
Price
Placement
•Innovation should be driven by consumer need or gap opportunity in the market
• Innovation in product pipeline • What about Effervescent - convenience trend growing• Energy /Supplement drink
KEY: High LowMed
Product
•In store spend / co-op promos to accomplish stronger brand appeal
• We are Not utilising all distribution channels : deeper and full distribution of the brand within designated channels• in-store branding opportunities and consumer touch points
•Value erosion / need to justify the premium brand proposition - use certain products to draw consumers
• We are priced higher, as market leader. If Differentiated, its good, but ‘for like’ products, competitors are priced significantly lower at similar dosage
• Consumers buy-in to the ‘market leader’ power claim. We need to capitalize on this while we can.
• Build brand positioning and Drive market leadership in-store and at POS, support with Media TOMA
• Opportunity to target HCP to recommend Solal for anti-aging conditions
• Experts do not tend to recommend supplements, unless asked by the consumer. Scripting uncommon unless for Condition /Needs states
• Need to attract More New Users to encourage trial and thus grow brand loyalty
• Insufficient spend to defend and grow brand position vs. Other big brands, eg. Vital, Caltrate, Procydin : Market responds to media.
Include Geographic expansion, distribution, channel plans
Brand Growth
SWOT Analysis
STRENGTHS WEAKNESSES
Good Brand equity as ‘anti-aging’ specialists Seen as category leader in segment by Dischem Education function to consumers / market High Quality perception Dominant player within Dischem In-store visibility and merchandising
Lack of broader distribution / availability Premium pricing / niche target market Too many products in the range – tail end
complexities / dispersed focus on Top 60 Limited Advert & Promo spend
OPPORTUNITIES THREATS
Stronger ‘healthy -aging’ consumer positioning Leverage the preferred status with Dischem for
short term growth drivers Wider distribution through P ‘n P, ‘A stores’ SOLAL Brand should be available in Clicks (Ww?) Innovation / NPD pipeline – Education of
benefits and support claims Create a stronger Aspirational brand appeal -
“I want : the preferred choice”
Risk of 65% of business thru Dischem Low consumer knowledge – build perception
as the experts Competitors offer better Value for Money Highly competitive market – ‘me too’
category of ‘like’ products with private label proliferation
Total Vitamins market in Decline
Improve Retail Distribution
GROWTH OPPORTUNITY 2
• Consumers shop for supplements monthly in the grocery retail environment, especially if they know what they want or are a loyal user to a brand
• Consumers will make a special trip to the pharmacy as part of their monthly/ weekly shop since they prefer to get recommendations from experts /assistants –Deeper distribution opportunities within independent pharmacies ( 1800+ )
• Generally, there is a possibility that a Power claim will be more effective in a grocery retail environment (no influence) vs. pharmacy where assistants and pharmacists are able to switch consumers to other brands.
• Retail stores lend themselves well to cross merchandising in other health oriented sections ( display stands in veggie/fruit and juices/yogurt sections).
GROWTH OPPORTUNITY 1
900 000 : 42%
Established BCI Market
Older, stable family men and womenMajority married : 45+ years
Value of Black Diamond
• RSA claimed consumer buying power R660 billion
• White claimed consumer buying power R230 billion (34%)• Black claimed consumer buying power R360 billion (54%)• Black Diamond claimed consumer buying power
R160 billion (24%)
• 15% of Black SA adult is responsible for 43% of Black buying power
RAPID GROWTH @ 30% per annum in past 5 years
Predictions for the future
• The Black Diamond market (LSM 7-10) will continue to grow into an even more powerful driver of consumer spending and the economy due to middle income quickly moving up the ladder of consumption :
• existing members advance in their positions
• more employment opportunities for BCI middle income to advance quicker
• better qualified and trained people move up the employment ranks as a result of investment in education, corporate development and promotions and the state BEE empowerment laws.
• As the market expands and evolves and consumers grapple increasingly with their individual aspirations on one hand and cultural influences on the other, it will become more complex, more fragmented and will present marketers with greater opportunity to expand their brands, but more challenges in terms of the psychographics within target market segments.
Penetration
GROWTH OPPORTUNITY 2
• The brand is still in a Growth phase : out-performing the market
• The opportunity to Focus the brand offering and ensure direct association with specific ‘needs’ conditions : become the experts in focused conditions treatment
• Higher LSM BCI consumer groups who are focused on their health
• Availability of the brand to more consumers who are health conscious and not aware of SOLAL : regions, population groups
• Penetration of the brand into more consumer households and into newmarkets
Innovative new products
GROWTH OPPORTUNITY 3
• Effervescent forms are the convenient trend – especially in the energy segment, it can easily be taken and can be launched in flavours
• For a market leading brand, line extensions can be used to improve shelf presence and SOS.
• We need to expand the Size of market as the leader - we will be able to grow the segment through investment!
• Capsule forms are viewed as ‘more premium’ by some consumers.
• Ready-to-Drink supplements are gaining presence in the top end and forecourts as a convenience item.
GROWTH OPPORTUNITY 3
Convert Med HCPs to recommend SOLAL
GROWTH OPPORTUNITY 4
• Expert recommendation gives comfort and assurance to consumers
• Prescriptions for supplements do not get substituted at pharmacy level
• Experts understand supplements on the market are similar in delivering benefits
• Science and clinical data are important, therefore brands/companies providing the most information get prescribed most often
Strategic Drivers
Grow our Brands Analyse customers and
competitorsBuild customer marketing
and key accounts
Strengthen Team capabilities
in 2015 - lack of Plans
Collaborate in planning, plan-
o-grams, merchandising and
in-store display
Execute successful customer
campaigns – short terms
drivers
Assess our market position
- Analyse data and present
customer insights
Identify market gaps and
improve market share
Develop Channel plans
- Effective integration of
commercial functions
Invigorate SOLAL brand ATL
- Partner Agencies appointed
Develop Key Growth
Strategies, that include NPD
Understand our consumers –
shopper behaviour
Plan to win: Assert Dominance
Multiple Brand Touchpoints
Awareness
Occasional campaigns / print
Pharmacy & Doctor
HCP, Expert, CredentialsConsumer Activations
Education, Trial, Expert,Top of Mind
DSTV/NatGeo Sponsorship
HIGH LSM : Awareness, Trial, Expert
In store Dominance with Claims substantiation
Expert, Credentials, Trial, Switch
Anti-Aging Prevention Prog.
Expert, Trial, Habit
Web & Social
Awareness, Expert, Innovator
Magazine & PR
Awareness, Trial, Expert
Target Market Profile
Need State : Occasion
I need protection to ensure I age healthily and without fear
I’m concerned about a particular condition.
Who is the Consumer :
Women bias : LSM 7 - 10, Age 35+
Psychographics : social conscious, aspire to be healthy, lifestyle aware, educated, tech advanced, worried
about aging, recommended by pharmacist, self diagnosing (empowered in store), prevention is better than cure,
buying a promise, believes supplements work, older females fear growing old, buy into protocols, protection
against ‘aging damage’, disciplined, committed,
Needs & Wants : Why
- I want to look young, successful, healthy, feel good, feel better, look sexy, prevent aging, have quality of life,
longevity, achievement, competitive, active, health, protection, maintain status quo, trendy, vitality, fear of getting
old, taking control, fear of the unknown
- I need to ensure that growing old will be pleasant
- I need help to age healthily : I want hope in active longevity
- I want to take control of how I age as best I can
- I want to be empowered to control my health
Decision Tree – Consumer Expectation
Price Quality Time Product
Benefits
Service
Benefits
Emotional
Benefits
Image Benefits
- Premium
But,
Competitive
- Belief,
perception,
better product
intrinsics,
pharmacy /
health
practitioners
endorsement =
good quality,
well known
brand, word of
mouth
- Accessible
- Find
Everywhere
- No side effects,
preventive, safe,
natural, claims, it
works/ delivers
on promises
- Retail
assistants to
have
information,
website to
offer
education
- Trusted,
healthy, feel
empowered,
superior, feel
better,
Give my
body the
best
Holistic, healthy
lifestyle,
overwhelming–
I need help
/confusing,
alternate,
generic products
Competitive Set :
Nutraceutical: Solgar, Biogen, Metagenics, Xymogen, Natrx, MNI
Patrick Holford, Centrum, Vital, Unique formulations (product specific)
Pharmaceutical: OTC, prescription
PRODUCT
• Huge range of products under the corporate brand - rationalise
• Specialists in Healthy aging solutions to meet needs /aging conditions
• High Quality: need to justify premium
• Proprietory ingredients / formulations
PACKAGING
• Strength of white Block , but can be confusing
• Create a more consumer friendly categorisation of products
• Dominate in store presence and offer opportunity for improved stand-out
PLACE
• Exclusive Distribution – Dis-chem and Top 600 pharmacies
• Opportunity for growth to broaden penetration to more consumers
• Create more availability
PROMOTION (ATL)
• Campaigns – partner with Ad Agency for ‘big idea’ for ATL execution through TV, print, radio, sponsorship
• Top end brand association : Dstv
• Media structure : Media agency to recommend media flow plans and focused spend for Improved ROI
SOLAL
PRESENCE
• Define priority ranking by channel – Dec’13 : Top 30 - 50 sku’s
• Identify Actions for Listings – Apr’14
• 6 month review
• Action distribution drive – Test Market : July ’14 (Clicks / Hypers)
• Review Jan ’15
PLACEMENT
• Define location in store, merchandise by needs condition, and implement shopper flow ( Dis-chem test stores)
• Design optimal Planogram layout : Apr’14
• Implement in July ’14 (by condition / consumer friendly in store)
PRICING
• Maintain 10 -15% price premium
• Develop learning's on price elasticity within product groups
• Determine optimal Price Index
• Monitor price switching vs competitors
PROMOTION (BTL)
• Customer co-op Display drives -merchandising / Visibility (s/term benefits)
• Broadsheets to support price – In line with Focus condition : 1 per quarter
• Campaigns – media innovation and carry through to store POS eg, shelf, big packs
SOLAL
Competitors
Centrum Vital
Strengths •Dominant Equity - high market share•International Brand•Huge Advertising investment – above and below the line•Great distribution•Emotional and functional campaigns•Line Ext opportunities being rolled out
•Very wide range – health care expert positioning•Leverage umbrella brand•Multiple touchpoints including free samples in magazines•Category re-invention in store.•Differentiated packaging campaign ?
Weaknesses •Over- Priced vs many players•Risk from Generic / DOBs copy (Spectrum)
•Pricing•Risk from DOBs
Opportunities • Strengthen their No 1 position• Convenience forms of product• from Multivitamins into single and specialist forms• Effervescent?
•New forms•More ATL
Threats • Generic & House Brands infringing on market share
• Amount of competition eroding market share
Competitors
Caltrate SOLGAR Osteochoice
Strengths •Dominant with high market share (tabs & chews)•International Brand•Huge Advertising investment – above and below the line•Strong Chronic House/ Dispensing Doctor support (TPM Data / Phy Data)
• Specialist range through health shops and selected retail• Similar formulations to SOLAL
•Superior formulation(contains folic acid, vitamin B6, B12 & C, Phytase)• Mltn co support - Sanofi Wynthrop•Very active with advertising (TV)•Strong “Choice” brand name•Can give to children from 4yrs
Weaknesses •Premium Priced•Flavour variants not performing (Mint & Orange)
•Pricing •Brand not well known
•ATL Advertising not driving growth
Opportunities •Line extensions under very strong International Brand name - International pipeline of products e.g. effervescent market
• Wider distribution and availability and advertising support
•Future line extensions•Having GP in ATL Ads may well pay off ….Endorsement : “the journey to good health begins with the right choice, PharmaChoice”
Threats •Generic & House Brands infringing on market share
• Cheaper me too products available
•Other competitor entrants
Where do we want to be ?
Superior Value –
Consumer Proposition
Strategic Objectives
Grow revenue from R155 mil (F13) to R194 mil (F14) to R225 mil in F15
Consumer: Grow Target market penetration in the 6 key ‘Needs’ segments
Availability by Region : Grow Clicks turnover (> R36 mil pa); grow GP, KZN, WC
and export (Nam, Bots) aggressively ; OFS
Channel: Grow Drug Chains (Dis-chem, Clicks), Wholesalers and Independent
Pharmacy Groups, strengthen Internet buying.
Improve Doctor detailing – develop a larger network of Doctor support
Customer: Utilise Dis-chem new ‘preferred’ relationship to achieve >15% growth
through ‘push’ campaigns (Key Act plan). Develop Clicks relationship and grow
Indep. Pharmacy num. distrib.
Focus on Detail aids and selling tools to increase scripting loyalty (education)
Products: Align (same, better, different) and grow product portfolio according to
the 6 consumer Needs groups – set growth objectives for KVI’s
Marketing KSF
Key Issues
Customer Support and collaboration
Ad Agency / Media planningSupport
Sales / Key Act Management
MarketKnowledge
&Insights
Resources –Brand Man & Analyst
Brand Health&
Differentiation
Differentiated Consumer Value Proposition
Value
Propositi
on
Price Quality Convenience Product
Benefits
Service
Benefits
Emotional
Benefits
Image
Benefits
Desired
Propo-
sition
Premium 1. Unique Product
- Prop. formulation
- Therapeutic dose
- Unique Extracts
2. Unique Prop.
- Healthy aging
specialists
3. Unique Processes
- Quality control
- Research
- Information supply
- Caps technology
- Information sharing
- Prop. product
development process
(peace of mind stability
programme)
Understand-
able, visible
(pack and
shelf block),
exclusivity
to Dischem
/selective
distribution,
easy to
consume,
many
products
Effective
Healthy
aging
POP self
diagnostic
/script
system to
simplify
decision
making in
store
- Need
education
Liberated,
empowered
to make
decisions
World
leaders in
aging
healthily
A 2-pronged strategy is necessary to grow the SOLAL brand :
I. LSM 7-10 – Strategy of Education
Strengthen brand positioning in consumer mind
Education on what products satisfy which needs states / conditions :
Features, Attributes and Benefits (FAB)
New product Focus on Specific market gaps
Instore POS / merchandising.
II. New Users – Strategy of Empowerment
Communicate the benefits of using SOLAL everyday for healthy aging
solutions
Focus on creating Aspiration to the brand : utilise mainstream
conditions / products to encourage first time usage
Increase distribution in order to provide availability to more consumers
Brand Strategy
Brand Strategy
Differentiation through stronger positioning of SOLAL as the ‘Healthy-
aging Specialist’ : a solution for ‘ALL’ your aging needs
Own the position of “healthy aging solutions” in the consumers mind -
important to make an emotional connection, empowerment and
positive choice – give a believable reason why ? Show that it Works –
efficacy.
Differentiate through brand associations linked to sponsorships,
partnerships and alliances. Have the brand in the associated lifestyle
that it resonates with the core target audience (DSTV)
Develop a ‘Big Idea’ that will become ‘the emotional hook’ that builds
the brand personality and attracts new users to become loyal users
CHARACTERSOLAL is your partner in assisting you with
aging, natural ingredients and the right vitamins to keep you healthy
ESSENCE
The brand that keep you healthy as you age
POINTS OF PARITYLarge Range of products for your every need
Keeps me Healthy
POINTS OF DIFFERENCEThe expert on vitamins and supplements for health and aging
Empowered with information at POP / advertisingI feel in control of my health as I age
REASON to BELIEVENatural supplements /Vitamins that work to manage aging
conditions
Maintaining Health People who believe in
preventative health care ; healthy aging
Active PeopleThose who need to manage their health to avoid ‘down-
time’ during busy life schedules
WHO
SOLAL : Brand Architecture
Offers the best products that are effective,
and will give your . body the
best chance of aging healthily
Top quality . products, with researched formulations that offer supportand peace of mind
Different, Empathy, . effective solutions, . innovative,
The brand you canTrust, caring
4. InsightIts important to maintain my health as I age and respond to changing body and health conditions
3. Target MarketFocused on Consumers who are wanting to maintain their health as they age, skewed towards Females, 35 - 60+ who need to look after their aging family needs without worry
2. Competitive Environment
Highly competitive market,Where consumers find too many choices and need education on the right solution for their needs
Effective healthyaging solutions :proved formulations,
research, support claims
9. EssenceHealthy Aging ; Improving and
Prolong the quality of Your Life
Give your body
. the best
1. Root StrengthsBetter quality extracts, prop. formulations and ingredients : solid
claims
Develop SOLAL Core Brand Key
See Communications StrategyAt the end of presentation
FY14 Budget – ATL
Allocation by Media
28%
14%
18%
18%
4%
18%Sponsorship
In-store Merch
Magazine / Press
Radio
Internet
Customer push
SOLAL Spend : FY 15 Expected Spend
Online PresenceWeb presence (basic) R200 000
Advertising / Brand EquityPackaging refreshIn store Messaging & POSAdvertorials - EducationTV CommercialSponsorship : Nat Geo/DSTVRadio ( 4 Bursts)Print : Magazine / Newspaper (6 Conditions)Production Media / Agency Retainer fee
R50 000R250 000R200 000R3 000 000 (?)R1 000 000R1 150 000R1 500 000R1 000 000R 500 000
New Product CampaignsLaunches (media)In store support
R1 000 000R500 000
Retail InitiativesClicksDischemIndependent pharmacyFood Retail - listings
R200 000R1000 000R200 000R250 000
KOL / HCPGP DrivePharmacist Drive
R150 000R50 000
FY15 R12 200 000 (R9,2mil) 4%
PRINT ADVERTSMale version Female version
Portfolio Strategy
Existing Products New Products
Existing Markets
Market Penetration-Incr. consumption of loyal users - Encourage Brand switch- New Channels to attract non-users
Product Development
- Line Extend- New prods
New Markets
Market Development
- Expand distribution- New Users- Stimulate trial- Strengthen positioning
Diversification
- New market Opportunities – Africa- Build or Buy Resources
New Product Development Matrix
Product PortfolioSOLAL : 225 SKU’s (?), 92%
80 products = 70% Turnover / 164 line items
1. Meds : 85%, 164 SKU’s
- Mood /Sleep 12 Sku’s, 15%
- Cardio 20 Sku’s, 13%
- Endocrine 14 Sku’s, 9%
- Essential fatty acids 7 Sku’s, 9%
- Gastro 8 Sku’s, 6%
- Aging 12 Sku’s, 6%
- Hormone 3 Sku’s, 5%
2. Foods : 5%, 54 Sku’s
3. Derma : 2%, 7 Sku’s
Health Prescriptions : 32 Sku’s, 7% + Health Complete : 6 Sku’s, 1%
Fine Pharmaceuticals : 2 Sku’s, 1%
Product Portfolio Plan
Goals Consumers Regions/
Export
Channels
(Selective
Distribution)
Customers
Adapt Existing
Range to
Focus on
where the
business is
being
Generated :
80/20
- Women bias
- LSM 8-10 ( extend to LSM 7)
- Age 35+ : for Families
Needs States / Conditions :• Hormonal
• Cancer
• Cardiovascular disease
• Diabetes
• Depression, insomnia and anxiety
• Stress and exhaustion
• Weight and thyroid
• Pain and inflammation
• Memory and brain
• Immune health boost
• Slow down Aging conditions
• Gut health
• Hair, skin and nails
• Eye health
• Sports performance enhancement
- GP 60%
- WC 20%
- KZN 9% *
- MP 5%
- EC 3%
- Other (OFS,
Limp, NC, NW)
4%
- Export (Nam,
Bots, Zim,) 2%
- Drug Chain 66%
- Wholesale pharmacy
15%
- Indep. pharmacy
Groups 7%
- HCP 2%
- Health shops 2%
-Top end retail 1%
- Compound pharm 4%
- Other (Internet, export,
doctors)
- FMCG 1%
- Drug chain :
• Dis-Chem 57%
• Clicks 9%
• Woolworths 1%
- Wholesale
Pharmacy
• Alpha Pharm 8%
• UPD 2%
• CJ Pharmacy 2%
• Norpharm 3%
- Independent
Pharmacy
• Wellness 1%
• Springbok
• Mopani (Nelspr)
• Morningside
Pharmacy
• Selected Doctors
Strategic Challenges
Consumer :
1. Product switching in store
2. Lost consumers due to lack of delivery on promise
3. Awareness, consideration, trial and repeat purchase
4. Complicated messaging – difficulty to see the Needs categories on shelf
5. Lack of consumer empathy / emotional connection
6. Creating the Value Proposition effectively
7. Advertising Budget Low % of turnover – invest X2 of value growth (+30%)
Customer :
1. Build the relationships through dedicated contact - Leverage the brand
2. Management of supply chain / stock – On shelf Pharma, fix service levels
3. In-store lack of knowledge / Education of Staff Advisors
4. Premium shelf space – manage merchandising effectively
5. Co-marketing spend on Promotions to move products off shelf in short term
6. Correct product range focus (sku analysis / GP%)
7. Need to develop other distribution channels – 2nd tier : to minimise risk of being held to
ransom by Dischem
Challenges to Overcome
Strategic Challenges
Dis-Chem: 57% of business - Huge Risk1. Direct Product switching to Biogen – Action plan (brand ambassadors in store at month end)2. Manage relationship into joint collaboration and category growth 3. Improve relationships at store level and with h/o management 4. Product range – focus on growing the Top sellers (50 products)5. Packaging – cluttered and needs to be user friendly / ‘kiss’ per condition6. Store Activation – off shelf display and cross merchandising opportunity7. Key Account Customer Plans – what, when, where (sales execution)
Independent w/sale & Pharmacy and Doctor detailing
1. Lack of focus – opportunity to grow volume
2. Require relationship building and representation : resources
Regional Focus
1. GP, WC, KZN is the focus – What about OFS (can be as big as KZN – farmers wives)
2. Lack of focus – what is the action plan by region to grow ?
3. Insufficient representation to target indep. Pharmacy
4. Use sales agent for food Retail (3% of turnover) : need to list at h/o
Exports (Nam, Bots)
1. Sales strategy needs to be put in place – distrib. agencies that will endorse the brand
2. Regulatory issues to be fixed
3. Need to focus on education to the High LSM segment / target specific malls and stores
Strategic Challenges
Products
1. Need more regular new product innovation – lead the market !
2. Product range modernisation and alignment according to core Needs segments
3. Too many slow moving SKU’s – tail end products clutter the business
4. Generic (product same) nature of products and processes need to bring prop. info
5. Names of products – confusion /misunderstanding for consumers
Internal Process / Resources to overcome
6. Product Leadership – Innovation Process & Speed to market
- Being First to market, creating hype
7. Customer management – Relationship management at Head office and store
- Customer service at all levels
- Intimacy with retailers : Grow the category in collaboration / partnership
8. Operations – Supply chain effectiveness
- Quality, cost and time
Strategic Plan - Objectives
Objectives
to
Achieve
Consumer
Increase
awareness,
consideration
and trial by X%
(Mkt share
measurement)
To increase
spontaneous
first brand
mention, risk
group
association with
advertising by
X% (Res)
To create high
impact
advertising with
a limited budget
– Media flow
plan
development
Channel
Partnerships : eg, retailers,
Agencies
Right product, in right stores,
at the right time, at the right
price
Top of Mind awareness,
knowledge and customer
support at head office and
store level
Knowledgeable sales people
on the retail floor
Identify the correct product
range for growth
Develop regional action plans
for GP, KZN and WC
Develop country sales plans
for entry into Nam and Bots
(Exports)
Customer
Partnership outcomes
Top 50 sku’s to achieve
15% growth – monthly
measurement vs PY
Develop customer plans
for Pharma w/s - Alpha,
CJ and Indep.
Pharmacies and target
Selected Doctors in high
LSM areas
Product
Increase %
contribution of new
products to total sales
Need to get to know
customers and drive
growth in collaboration
To keep a range of 150
SKU’s, but Top 80
carry the bulk of sales
focus
Modernise the current
packaging and product
range to be clustered
- speed to market
(must be instore by
July 2014)
Strategic Plan - Objectives
Functional
Activities
• Marketing
• Sales
• Key Accts
• R&D
• Support
Services
Consumer
TTL Integrated
campaign
(Advertising,
Website,
Packaging, POS,
Promotions,
Social Media,
etc.)
Big campaign
Idea – Brief
agency asap/
latest Jan’14
To create a
powerful emotive
Brand identifier
Channel
Engage in commercial
teams working together
Integrated support in store to
back advertising
Sales Training Program /
follow through to in-store
staff
Top 50 products, filter of
costing / GM%, customer
profitability, and shopper
relevance.
Build our 6 core ‘Needs’
awareness & product
categories
Appoint New Resources to
build a strong commercial
offering
Exports : Establish
regulatory foundation for
sales opportunity
Customer
Develop customer account
plans and marketing support
materials
Evaluate and modernise
products and cull slow
movers / once off sell-out
plan
Analysis of monthly sales
and action plans for
implementation
Product
approval,
implementation and
measurement of the
NPD process
Incentive
programme
promoting product
leadership strategy
Better customer
understanding and
co-operation
More innovation /
NPD ideas from
overseas
Reposition Brand
and product range
under the new
positioning strategy
How we going to get there ?
Planned Execution -
Scenario plans
Retailers
Dominate instore at point of contact : Moment of Truth – consumer interaction
Educate pharmacy and store shop assistants on recommending SOLAL as the Brand of choice for consumer needs
Influence retail campaign activity through understanding their category sales objectives
Establish retail partnerships – dual branding, cross pollination
Assess Retailer needs, and negotiate joint commitment to plans
National brand campaigns across all stores – sales execution
Marketing support to achieve brand objectives - develop campaigns
50 /50 funding on retail projects that drive dual branding
Enhancing Consumer loyalty
Packaging upgrade – communicate consumer friendly and Quali-safe
Merchandising and education booklets always available
Develop a ‘what’s New section’, innovation, keep interest
Reliable and Positive Shopping experience – consumers must easily get what they want every time, generates purchase habit & loyalty
Create perception of being a dominant authority in your field (World healthy aging), become a ‘destination shop’, must be convenient / availability
Proactive frontline staff, who are attentive and responsive to customer needs : cross-sell, up-sell, substitute sell (incentivise assistants)
Offer a variety of price points based on degree of differentiation : value for money, good, better, best continuum
Focus on customer satisfaction – meet retailers needs for category support
No-No’s : OOS, overpriced vs competitors, cluttered merchandise / difficult to find what you want, poor price marking, uninformed staff
Leverage The Brand
• Leverage the SOLAL brand to convert GPs, specialist doctors, pharmacists, pharmacy assistants currently prescribing / recommending Centrum, Pharmatonand other vitamin supplements to start to FOCUS their patients towards the SOLAL range instead (Expert recommendation – KOL and Education authority)
• Educate and attract uncommitted vitamin supplement users who use competitor brands to buy and use SOLAL through the advertising and marketing media attention (Consumer and shopper Focus – Influenced by trends, and Peer group recommendations)
• Give consumers a reason to believe and increase usage and awareness in the higher LSM primary target markets in line with the increased availability through the new distribution strategy
• Research Segmentation :• Where they shop most
– Biggest segment is Cough, cold, flu @ 33%
– Sleeping, pain and joints @ 27% (worsens with age)
– Diabetes, BP, Cholesterol @ 10% (highest risk with aging)
– Allergies, Sinus, respiratory @ 12%
– Digestive, Gastro, detox @ 8%
– General health maintenance @ 6%
– Look at category examples : Krill Oil & Melatonin/ 5 HTP
Category Campaigns
IMS Shares : Pharmacy sales
• 98 % category growth (MAT) due to huge investment and triple digit growth from
- Viral Guard ; Bio-Strath ; Procydin
• Procydin moves to No 1 : Procydin doubled it’s media spend from R5M in 2011 to R10M in 2012.
• Category responds well to advertising / TOMA
• Incredibly cluttered vitamins and supplements market segment : Over 230 Brands! Have to standout
Brand Month Value Month ShareMonth Growth YTD Value YTD Share YTD Growth MAT Value MAT Share MAT Growth Position
Total 24 325 925 100.00% 71.01% 73 048 028 100.00% 83.26% 277 764 160 100.00% 97.70%
VIRAL GUARD 5 617 534 23.09% 1 200.07% 15 729 530 22.03% 1 062% 51 184 528 18.43% 220.63% 1
VIRALCHOICE 1 611 433 6.62% 67.25% 6 929 022 14.47% 24.07% 34 194 789 12.31% -5.37% 2
BIO-STRATH 1 153 007 4.74% -0.13% 2 729 669 3.62% -15.26% 12 773 541 4.60% 223.82% 3
MODUCARE 1 185 526 4.73% 20.38% 2 743 329 3.47% -2.85% 10 180 545 3.60% -13.25% 4
OMEGA 3 & 6 945 312 3.89% 39.01% 4 498 288 5.92% 98.85% 17 365 607 6.25% 182.24% 5
UNIQ OMEGA 3 6 9 857 541 3.53% 864.19% 1 700 289 2.16% 1 300% 5 549 759 2.00% 2 315% 6
IMMUNOVA 659 703 2.71% 245.20% 2 126 693 2.51% 1 012% 6 260 824 2.25% 3 176% 7
KRILL OIL NEP OMEGA 3 658 245 2.71% -23.50% 2 182 215 2.64% 43.56% 8 640 660 3.11% 195.76% 8
AIRMUNE 517 666 2.13% -23.65% 1 818 287 3.22% -33.48% 9 790 560 3.52% 3.74% 9
Brand Month Value Month Growth YTD Value YTD Growth MAT Value MAT Growth
PROCYDIN 7 588 948 197.46% 17 529 525 136.32% 51 398 228 98.31%
Immune Health boosters
Immune Booster Spend
Relatively high levels of spending from Procydin (R10 mil) focused on ATL.
There is clearly a consumer response to advertising in terms of sales growth
Source: 2012 Nielsen Adex
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2011-07 2011-08 2011-09 2011-10 2011-11 2011-12 2012-01 2012-02 2012-03 2012-04 2012-05 2012-06
MARCUS ROHRER SPIRULINA
PROCYDIN
PLUS +
• Education around use of immune booster supplements
• Competitive Noise in Media
• Heavy investment ATL in a segment driven by ambitious
brands looking for growth
MINUS -
• Expensive segment that consumers are looking for
information as to WHAT works effectively
(out of pocket expenses - limits usage)
• Healthy levels of investment are directly related to
volume and value growth
• Clear strategies and strong campaigns have rewarded
competitors with good loyalty, trial and brand awareness.
What has driven or limited growth for competitors?
• Education is improving and consumers becoming more
empowered at POP
• Market is receptive to new products at good prices that
are supported with ‘reason to believe’
• This supplements segment is NOT molecule-driven but
‘Claim driven’ to deliver on promises.
Implications for Growth Plan
• We need to be able to invest positively
(disproportionately) and the effect on brand sales growth
will be easy to see in year 1
• Map out a support plan that drives education and
supports claims in order to secure an increase in sales
Implications for Growth Plan
What has driven or limited growth for the Category?
Analysis & Conclusions
CHARACTERThe sleep expert.
Rest assured, for a calming night’s sleep
ESSENCE
A soothing, guilt-freesleeping solution
EMOTIONAL BENEFIT-Rest / Escapism-Peace of mind
-Stability
INSIGHTS-Easy Accessibility / OTC
- Stigma attached to prescription meds-Acceptable in society
WHOOver-worked, stressed out and work-a-holics who can’t switch off /sleep
for fear of worrying about their issues
RATIONAL BENEFIT-Natural - Proven track record- No dependency / side affects
Wake up feeling fresh without any drowsiness
Melatonin / 5HTP - Opportunity
Brand Architecture
IMS Shares : OTC Sleep Aids
Brand Corporation YTD Value YTD Growth MAT Value MAT Growth Share
Market 9 306 607 7.67% 35 846 391 8.67%
SOMNIL ASPEN 5 532 494 8.66% 21 111 781 10.90% 59
5-HTP SOLAL 1 618 797 15.88% 6 850 624 132.94% 19
BETASLEEP ADCOCK INGRAM 1 641 995 14.71% 5 592 909 11.35% 16
SLEEP-EZE P.M. ASPEN 474 749 -4.87% 2 081 892 2.43% 6
NEUREXAN HEEL HEEL 29 912 72.88% 134 025 402.30% 0
MELATONE LAB 2 563 -94.39% 38 451 -15.82% 0
NYTOL ASPEN / GSK 6 097 24.07% 36 709 65.24% 0
• The category is showing 8,7% growth on MAT and also YTD (End of year ‘sleep aid season’).
• Competitors : Betasleep ; 5-HTP ; Somnil showing good growth.
• Melatonin should be Read in this category – opportunity to gain market share (even as Sch 2).
• Constant advertising and in-store reminders (shelf strips behind the counter) are required to ensure that
you get space and competitors do not steal share.
Brand Elements
• Wobblers• Dummy boxes• Pens• Shelf Strips• Dosage Cards
• Magazine
Advertising :
3 inserts over 6
months
Plan to win
New cleaner packaging
Detail Aids - HCP
In store Materials
Shelf talkers for behind the counter
HCP Magazines
Awareness, Expert
Web
Presence
Market Planning
Segmenting the market - understand gaps in consumer shopping behaviour
Profiling of our main target market, and focus our media spend
Take cognisance of attracting upmarket BCI market (LSM 7 – 10)
Target perceptions on expenditure habits : appeal to emotions – “give your
body the best”
Look for communication contact points - what do consumers respond to ?
Partner with media agency for innovative & effective media touch point
plans
Media Planning
Ascertain the Ideal Mix of media spend : which
mediums to get maximum return on
investment
% Reach - Audience Rating /
Ave. reach
% Penetration – Portion of your target market
% Frequency – How many times your Tgt. Mkt. see your advert
Burst of Advertising with longer breaks to establish personality, or Drip strategy for constant reminding and call to action
Resources
Appoint advertising agency to create ‘the Big Idea’ – create an emotional campaign that reinforces the SOLAL Brand positioning and builds a personality that consumers identify with : Engage and inspire Consumers to Take action
Manage Media planning support to ensure integration of campaign idea through to execution of various media to convey the message and carry through to in-store activity for integration and alignment
Build on the effectiveness of advertising spend – ATL : BTL (60 : 40 benchmark) Grow % Share of voice (SOV) to Share of Market (SOM) – info from media stats
Learnings from other Consumer brands to create disruption in store - Interest
Creation of cross functional teams for ideas and execution effectiveness
Cross merchandising
Counter top Dispenser Unit –Permanent Stand : change products re each condition / promotion slot
Executional Plan
• Develop a “through the line” campaign to drive product range usage:
– Build brand awareness to consumers and retail channels through media exposure
– Influence choice through education of retail management, pharmacy assistants, sales force, consumers and Doctors
– Create a “call to Action” at point of purchase through reminders and convenience to purchase
– Re-enforcement of brand and range benefits at store level with retail staff and consumers.
• Motivate and stimulate purchases through education and advertising, targeting consumers and incentivising brand involvement through healthy lifestyle encouragement
Brand Activation & Media plan
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Magazine
Radio
Sponsor-
ship
In-store
POS
Retail co-
op drive
TV Idea Prod Flight Flight Flight Flight
New
Product
launches
Brand Activity
• Full 360 support during Q1 (July – Sept 2014)
• Creative executions:
– Web: Create an Seasonal Page on website for consumers : What products are right for that season eg, Winter, Summer focus
– Print: New print ads for journals and consumer magazines
– Healthcare Professionals: Detail aids - change design each Q
– Digital Media within the Healthcare Practitioners environment especially in pharmacy
– Media (liaise with Media agency regarding flow plan)
– Budget and phasing by month into quarter plans
– Burst strategy to start and then drip strategy to keep reminders
– Supply material to media houses for advertising as per flow plan.
Mag Print
Exprocure
screens
Detail AidJournals
In-store focus
360 degree brand support
Win
Brand Activity Plans
Creative executions: – Create a SOLAL Brand personality and carry that through into all
mediums and in-stores
• Outdoor: Create outdoor content to target LSM 7-10 consumers, target the up-market residential areas (malls where there is a Dischem)
• TV Advertising (big impact) or Develop new Sponsorship Opportunities –Utilise High LSM media – Dstv, National geographic, BBC
• Digital: Develop digital campaigns to educate consumers
• Radio: Develop new radio adverts for ‘Need’ conditions
• Print: Adverts aimed directly at core market with relevant print media
• Healthcare Professionals: Develop detailing material / Educate pharmacy assistants
– SOLAL protects you from the effects of harmful aging….because Love doesn’t plan ahead (emotion)
Name……Tel/Cell number…...
Last 4 digits……………….
Mall Digital
Advertising
Mall Washroom
AdvertisingPharmacy Drive
Vitamins and Supplements
Brand Activity Plans
– Sponsorship opportunity for female content programming or new TV ad
– Digital: Develop campaign targeted at females (utilise facebook).
– Print: High Impact adverts for magazines targeted at females ; back with separate Advertorial to Educate
– In-store campaign (pharmacy POS, posters, dummy boxes, be seen)
– Merchandising : Communicate the New packs – highlighting the ‘Qualisafe’ endorsement and ‘ease’ of Alphabetical categorisation
– Print: Develop adverts for insertion in relevant medical and pharmaceutical journals throughout the year – boost support
– Healthcare Professionals: Develop detailing material aids for reps to discuss SOLAL with doctors and pharmacists – conversion ratio
IN-Store
FSU
Hanging Mobile Wobblers
Shelf Strips
Pharmacy POS Solution
Product specificStacking boxes
SHELF DEFENDERS
CONSUMER COMPETITION HEADER
Next Steps
Getting our agency partners on board -
Brief for Media Plans and
Advertising campaigns / big idea
Sponsorship ideas
In-store brand activation
O u r b r i e f i s t o c r e a t e a n a p p l i c a b l e
c o m m u n i c a t i o n s i d e a t h a t e m b o d i e s t h e d y n a m i c
a t t i t u d e o f t h e b r a n d , a n d g i v e s a c l e a r r o l e f o r a
q u a l i t y B r a n d t h a t e n c o m p a s s e s a l l p r o d u c t s t h a t
d e l i v e r t h e f u n c t i o n a l p r o m i s e o f ‘ g i v i n g y o u r
b o d y t h e b e s t ’ :
“ w i t h S O L AL y o u c a n c h o o s e t h e h e a l t h y a g i n g
s o l u t i o n f o r y o u r n e e d s , w i t h c o n f i d e n c e ”
Communications Strategy
C o m m u n i c a t i o n s p r i n c i p l e s t h a t w e h a v e t o b e a r i n
m i n d a r e :
I n v o l v e m e n t
W e n e e d t h e c o n s u m e r t o i d e n t i f y w i t h a n d b e l i e v e
i n t h e c o m m u n i c a t i o n
S i n g l e m i n d e d
t h e c o m m u n i c a t i o n n e e d s t o b e c l e a r a n d f o c u s e d
o n t h e S O L AL b r a n d v a l u e s
To n e
t h e c o m m u n i c a t i o n n e e d s t o r e f l e c t t h e b r a n d ’s
a s p i r a t i o n a l p e r s o n a l i t y
B r a n d i n g
t h e b r a n d n e e d s t o p l a y a n i n t r i n s i c r o l e i n w h a t
h a p p e n s . I t m u s t e x i s t w i t h i n a n d b e r e l e v a n t t o
“ a g i n g w i t h c o n f i d e n c e ” ( l i f e s t y l e )
Communications Strategy
T h i s w i l l l e d t o a s i m p l e , b u t v e r y s t r a i g h t
f o r w a r d s t r a t e g i c c r e a t i v e b r i e f t o t h e a g e n c y
O u r o b j e c t i v e :
W e w a n t t o l e a v e n o d o u b t i n t h e c o n s u m e r ’s
m i n d s t h a t S O L AL i s b e t t e r a n d w i l l m a k e a
d i f f e r e n c e t o y o u a g i n g h e a l t h i l y ( l e s s w o r r y )
Communications Strategy
T h e B r a n d a r c h i t e c t u r e o f t h e b r a n d n e e d s t o
c o n t a i n 3 k e y e l e m e n t s r e c o g n i s e d a s b e i n g
i n t e g r a l t o t h e c o m m u n i c a t i o n
O n l y t h e b e s t Brand Personality
Tr u s t Discriminator
C o n f i d e n c e Rooted in R&D of
Vitamins / supplements
Key Success Factors
Offers the best products that are effective,
and will give your . body the
best chance of aging healthily
Top quality . products, with researched formulations that offer supportand peace of mind
Different, Empathy, . effective solutions, . innovative,
The brand you canTrust, caring
4. InsightIts important to maintain my health as I age and respond to changing body and health conditions
3. Target MarketFocused on Consumers who are wanting to maintain their health as they age, skewed towards Females, 35 - 60+ who need to look after their aging family needs without worry
2. Competitive Environment
Highly competitive market,Where consumers find too many choices and need education on the right solution for their needs
Effective healthyaging solutions :proved formulations,
research, support claims
9. EssenceHealthy Aging ; Improving and
Prolong the quality of Your Life
1. Root StrengthsBetter quality extracts, prop. formulations and ingredients : solid
claims
Develop SOLAL
Core Brand Key
THE ESSENCE
THE CREATIVE PLATFORM
CREATIVE/
CAMPAIGN IDEAS
BRANDING
THE CONFIDENCE OF A HEALTHY BODY
Supplement with confidence
Healthy aging specialists
LOGO
Consistent visual ‘look & feel’
THE BRAND IDEA
TV ? PRINT
ACTIVATION
Healthy aging solutions
RADIO ACTIVATION
INSTORE ACTIVATION
Communications Idea
W h a t w i l l g e t t h e c o n s u m e r t o s w i t c h h e r l o y a l t y
f r o m r e g u l a r v i t a m i n s a n d s u p p l e m e n t s t o
C h o o s e S O L AL a n d p a y a p r e m i u m p r i c e ?
G e n e r a t e a n e m o t i o n a l “ H e a l t h y c o n s c i e n c e ”
a w a r e n e s s o f S O L AL q u a l i t y
G i v e a m o t i v a t i n g r e a s o n t o s w i t c h – Tr u s t
G e n e r a t e t r i a l
E n c o u r a g e l o y a l t y - c o n f i d e n c e
The Brand Journey
W h a t w i l l g e t h e r t o s w i t c h t o S O L AL ?
C r e d i b l e s u p e r i o r e f f i c a c y – I t w o r k s , “ I c a n f e e l t h e
d i f f e r e n c e ” ( p r o o f o f s u p e r i o r q u a l i t y )
T h e r a n g e i s b r o a d , d e e p a n d h a s a s o l u t i o n t o a l l
a g i n g c o n d i t i o n s ( s h e c a n f i n d w h a t s h e w a n t s )
S O L AL i s a b r a n d s h e i d e n t i f i e s w i t h ( i t ’s f o r m e )
( t o n e a n d s t y l e n e e d s t o b e d i f f e r e n t i a t e d &
a p p e a l i n g )
S h e r e m e m b e r s S O L AL a n d c a n f i n d h e r s o l u t i o n s
w h e r e v e r s h e s h o p s / p o i n t o f p u r c h a s e
( c o m p l e x c a t e g o r y w i t h l o y a l p u r c h a s e h a b i t s o
r e c a l l , g u i d a n c e a n d e d u c a t i o n a t s t o r e )
S h e n e e d s t o p u r c h a s e S O L AL e v e r y m o n t h , a n d
a g a i n a n d a g a i n ( s h i f t l o y a l t y t h r o u g h c o n t i n u o u s
h a b i t ) r e m i n d e r s & r e w a r d s
The Brand Journey
AWA R E N E S S
AT T E N T I O N
I N T E R E S T
THE CONSUMER’S JOURNEY
C O N S I D E R AT I O N
C O N N E C T I O N
C O N V E R S I O N
L O YALT Y
I N S I S T E N C E
E VAN G E L I S M
P R I N T
( T V C )
AC T I VAT I O N
R AD I O
P O S
P R O M O
C AL L T O
AC T I O N
R AD I O
S P O N S O R S H I P
D I G I TAL
Different channels playing different roles across the journey
E v e r y c a m p a i g n i d e a m u s t b e p r e s e n t e d w i t h a n
a s s o c i a t e d c o n s u m e r e n g a g e m e n t /
c o m m u n i c a t i o n s p l a n
W e d o n o t a t t e m p t t o j u s t d r a m a t i s e t h e
c a m p a i g n t h r o u g h t h e u s e o f T V ? ( 2 0 1 5 )
W e n e e d t o e n s u r e t h a t w e d e m o n s t r a t e h o w w e
b r i n g t h e b r a n d / i d e a t o l i f e t h r o u g h a l l
c o n s u m e r t o u c h p o i n t s a n d t h e w a y i n w h i c h w e
t a l k t o t h e c o n s u m e r
Strategic Imperatives
D i s c i p l i n e
A CLEAR ROLE FOR EACH
DISCIPLINE
R o l e
1 . A d v e r t i s i n g
T V / P r i n t
I n s p i r a t i o n t o
p u r c h a s e
2 . P O SP r o m p t t o
p u r c h a s e
3 . A c t i v a t i o n
a n d p r o m o s
I n c e n t i v e t o
p u r c h a s e
To d r i v e p e n e t r a t i o n w e n e e d t o m o v e f r o m j u s t
t a l k i n g t o o u r c o n s u m e r t o e n g a g i n g w i t h t h e m
a r o u n d t h e e l e m e n t s o f t h e i d e a
ENGAGEMENT STRATEGY
B r a n d L i n k a g e
A l w a y s o w n ‘ h e a l t h y a g i n g ’ p o s i t i o n i n g s t r o n g l y
C o n f i d e n c e r e ‘ s u p e r i o r i t y ’
A l l e l e m e n t s n e e d t o c o n v e y s u r e n e s s o f q u a l i t y a n d
t r u s t ( b u t N o t u n t o u c h a b l e o r e l i t i s t / N o t a l i e n a t i o n )
R e l e v a n c e o f b r a n d
D e m o n s t r a t e r e l e v a n c e i n a “ r e a l ” b u t a s p i r a t i o n a l w a y
C a n b e t h r o u g h i n s i g h t s
E m o t i o n a l c o n n e c t i o n
A l t h o u g h c o m m u n i c a t i o n h a s a s t r o n g f u n c t i o n a l
m e s s a g e , i t n e e d s t o b e d o n e i n a w a y t h a t e s t a b l i s h e s
a n e m o t i o n a l c o n n e c t i o n w i t h c o n s u m e r s
t h e b r a n d p e r s o n a l i t y n e e d s t o b e e s t a b l i s h e d a n d t h e n
r e i n f o r c e d
Creat ive considerat ions
Communications Strategy
M u l t i f a c e t e d E n a b l e s t h e d e l i v e r y o f a p r o d u c t
m e s s a g e w i t h i n a p o t e n t i a l
e m o t i o n a l c o n t e x t w i t h r e l a t i v e
f r e q u e n c y
P r o v o k e s a A n a t u r a l c l o s e r e l a t i o n s h i p w i t h
g r e a t e r c o n s u m e r s
e f f e c t o f t h e B C I B r i n g s t h e b r a n d t o l i f e
D r i v e s a S o n i c E s t a b l i s h e s a s o u n d f o r S O L AL -
B r a n d Tr i g g e r d e v e l o p s a p e r s o n a l i t y
The Role of Radio
C o n c e p t : R a d i o P a r t n e r s h i p s ( R e g i o n a l l y )
• S p o n s o r e d r a d i o s e g m e n t t o w o m e n o n
h e a l t h y a g i n g
• E x p e r t a d v i c e
• A d r i v e r t o m a g a z i n e p r o m o t i o n
• I n t e r v i e w s w i t h H C P o n a i r
• O n A i r p r o m o t i o n s
• P h o n e - s t o r i e s
• P h o n e - i n e x p e r i e n c e s
• D a i l y p r o d u c t g i v e a w a y s a r o u n d
p h o n e - i n s
• R a d i o c o m m e r c i a l s
………….The Role of Radio
A n n o u n c e m e n t : N e w P r o d u c t / C a t e g o r y E d u c a t i o n
H e r o o f t h e p r o d u c t : P r o v i d e s t h e o p p o r t u n i t y t o g i v e t h e
c o n s u m e r m o r e d e t a i l o n s p e c i f i c
p r o d u c t
S p e c i f i c P r o d u c t L e n d s a d d i t i o n a l s u p p o r t t o o t h e r
D i f f e r e n t i a t i o n : e l e m e n t s
C o n c e p t : M a g a z i n e A c t i v a t i o n
• T i e i n w i t h U p m a r k e t f e m a l e m a g a z i n e
• S t i t c h e d - i n / p u l l - o u t , H e a l t h y
s u p p l e m e n t
• B o r r o w c r e d e n t i a l s o f t h e m a g a z i n e
• S o m e o n e w h o k n o w s a b o u t
c r e d e n t i a l s o f H e a l t h
• H e a l t h G u i d e - B u m p e r E d i t i o n :
S u m m e r H e a l t h y l i v i n g
The Role of Print / magazine
Structure to follow Strategy
Essence
- Healthy Aging /
- Improving Life
Proposition
- Solal is the only brand that
can satisfy women and their
families need for healthy aging,
because we are healthy aging
specialists Substantiators
Benefits
Values
Personality
Consumer
Insight
Key Consumer Take Out
- Solal Keeps Me Healthy as I
age, so that I worry less
The Brand BullsEye
- Passionate
-People:
-Healthy aging specialists
- Radiant
- First to
Market
- Different
- Simplify
-Products:
-Propriety
formulations
- Price:
-Premium
-Processes:
- Quality control
- Research
- Information supply
- Licaps technology
- Information sharing
- Propriety product development
process (e.g. 10 step peace of
mind stability programme)
- Product:
Effective Healthy
aging
- Service :
POP self diagnostic
script system to
simplify decision
making
- Emotional:
Liberated
- Image:
World leaders
- Convenience:
Understandable,
visible (pack and
shelf), selective
distribution, easy to
consume
-Most Effective
in Class Solutions
- Empathise
The ravages of
aging: Unhealthy
aging
Aging is a fact of
life. From the
moment you are
born you produce
toxins that will
ultimately kill you.
It will effect your
immune system,
skin, heart, brain,
etc. Disempowered.
You can do
something about it
or you can take
substances called
nutraceuticals to
slow down the
process. Relying
on intervention with
medicines and
surgery after it is
too late. The
interventions they
use is related to
one or two
symptoms only, not
reversing the
problem.
Prevention is better
that cure. You no
longer get all the
vitamins and
minerals you need
in your food.
Lifestyle prevents
us from eating
healthy. The
uncontrollable
modern lifestyle
environment
(stress, pollution,
food additives,
plastic bottles, etc.)
– causes of aging
- Free
- Progressive
- Courageous
- Caring
EXECUTIVE SUMMARY
2014 / 2015 Strategic Marketing Plan
Consumer Value proposition
FUNCTIONAL :
– Healthy aging specialist ( world leaders and experts )
– Proprietary Formulations
– ‘Only the Best’ quality products
– Specific product leadership compositions for specific aging conditions
– Believable claims that can be substantiated and get support from Health care professionals
– The Emotional CVP needs to be developed utilising the product leadership equity, and building the SOLAL Umbrella branding around the positioning of ‘healthy aging specialists’
Differentiators
– Niche brand positioning – Healthy aging
– Unique product formulations that offer a total solution
– Product Efficacy : Consumer evidence that it works !
– Preferred relationship with Dischem
EMOTIONAL RELATIONSHIP BUILDERS :
– Build a corporate brand personality : create a consumer ‘hook’
– Establish a tone and SOLAL identity that connects with consumers
– Leverage the 6 focused “aging conditions” to meet consumer needs
– Continue to be First to market with Innovation (competitive edge)
– Build evidence for “prescribed by doctors and recommended by pharmacists”
Key Drivers – Priority Building Blocks
Short Term (6 months):– Relaunch packaging, simplify message and communicate convenience– Develop improved in store merchandising ‘stand-out’– Develop a 2014 Dischem execution plan to improve disruption touch points
that ‘attract’ new users, with agreed growth targets– Simplify magazine advertising message – less clutter and more single-
minded relating to specific ‘needs /conditions’– Utilise radio to create better synergy within the advertising strategy – need
to build ‘the right’ audio tone for the brand
2014:– January : Brief 3 Boutique Advertising agencies that can become partners in
developing the communications strategic direction and ‘big idea’– January : Meet with Media agencies to invest in a strategic planning partner
for execution ideas and innovation– Allocate appropriate budget to ensure brand growth within a highly
competitive market : dominate share of voice ; cut through media clutter
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