Corona Chocolate

Presented to :Mr. Ramy Khodeir

By:Dina Kamel

Table of Content• Executive summery• Market Research• SOWT & TWOS Analysis• Segmentation• Targeting• Positioning• Marketing Mix

Executive SummeryProduct Brief : Corona Chocolate was the 1st chocolate bar manufactured in Alexandria, Egypt, and it was the market leader in chocolate & confectionery industry, Knowing that corona’s name means crown in Latin.

For more than 80 years, Corona has committed to provide the Egyptian consumer with good quality portfolio of chocolates, biscuits as well as hard & soft candies.

our product type is “ Milk Chocolate Bar “ with different flavors; classic, mint, nuts and crispy ,in different sizes.

Company History : The Alexandria Confectionery and Chocolate co. CORONA factory was established

In 1919, that owned the highest market share in Egypt and the region.

Corona brand has enjoyed excellent reputation in the heart and mind of all Egyptians till 1994, gradually it had lost its market share dramatically by the competitors, and the brand image was perceived as a poor quality and lost top of mind recognition / awareness among their clients

Executive Summery

Company Status Today : In 2003 the company decided to sell some assets for product development and

human resources, in return Corona started a new quality system that comply with ISO 9002 requirements, and hired good calibers in the market.

The company new strategy is : make a face lifting for its products image by working on our brand identity through

improving the quality of the product, with reasonable price and appealing look that attracts the new young generation.

play on our heritage ” Nostalgia ” to attract parents and specially young mothers. Cannibalize from the competitors’ market share specially from Cadbury.

Executive Summery

Executive SummeryMission: To continue strive to meet the needs of our customers for total value by offering a

Quality products with various Flavors to cater all our customer need with affordable prices and unique package.

Vision:We seeking a local leadership in chocolate & confectionery stuff market by developing our performance, products and investing in our human resources.

Organization Objectives:1- Regain high market share.2- Increase company profits and margins.3- Present quality products with affordable prices.4- Increasing our channels of distributions.

Executive SummeryMarketing Objectives:

1- Increase awareness of corona chocolate with its new shape in Egypt.2- Retain customers and regain their trust in our product.3- Create strong brand position and enhance our product image in order to be corona chocolate a love mark.4- Create Brand loyalty.

Market Research & Analysis

According to the chocolate Market studies in Egypt we found that: Mars (galaxy, Mars, Twix…) has a 48% market share targeting High income and minority of Middle income. Cadbury owns 38% of the chocolate market share in Egypt, targeting Middle income. Other unidentified local brands ownsthe rest of the market ex: carina milk Chocolate manufactured by covartina that targets Low Income.

Market overview The Middle East is one of the Top 10 largest confectionary markets in the world , in Egypt Chocolate sales have steadily grown, with a rate of 2.5 percent annually since 2001, with the market now valued at $382 million.

Our Competitive Analysis:

Market Research & Analysis

Competitor name

offers Cost for Manufacturing

Retail Price

Target segment

position Product packaging

1- Cadbury milk chocolateDifferent flavors

High cost for good quality

high Middle Income

Good and different taste but high price (Highest Market share)

2-Unidentified local brand

Milk chocolate with limited flavors

Low cost for poor quality

low Low income

Poor taste but affordable and cheap price

Market Research & AnalysisMarket trend: All segments are fond of chocolate products specially kids & Females People seeks diversified portfolio of products to fit each taste. The middle and poor segments in Egypt are in need for a good quality of chocolate but with affordable price (Cadbury is good quality but expensive for them, and the other local brands are poor quality but cheap prices can afford it easily)

Research objective: Identify our customers (who are them and their demographics) Identify the factors that affects our customers to buy a certain type/brand of chocolate. Identify the current brand positioning.

Market Research & AnalysisDeveloping Market Research Plan: 1- Data Sources:• Primary data: what are the factors that makes people buy and not to buy.•Secondary data: commercial data as how much does people spent on chocolate and confectionary products.

2- Research approaches: Descriptive

3- Research instrument :Questionnaire.

4-Sampling plan:• Unit: schools, clubs and super market in Cairo ,Alex and Delta.• Size: 300 sample.• Procedure: cluster random sample ( areas)

5- Contact methods:Personal Interviewing & telephone interviewing

Market Research & AnalysisResearch Findings:

1- Most of our customers are Kids from 5-16 buy chocolate bar from their allowances, and parents (young mothers).2-the factors that affects people to buy chocolate are ; affordable price, good quality and different flavors & tastes, and the factors that repel them are; poor quality, No availability and high price. 4- Although corona considered as taste of memories “Nostalgia” to young mothers, kids perceive it as a poor quality and can’t recognize it.5- Kids attracted to the funky, colored chocolates packs.6- purchasing chocolate cycle is 2 to 3 times in a week, as young mothers doesn’t encourage buying it to their kids; to save them from tooth decay and more hyper active behavior.7-people spends on chocolate (High income: 15-10 LE weekly, middle income:7-5 weekly, Low income: 1-3 weekly)

Swot AnalysisStrengths

• Good financial resources.• Heritage.• well educated & experienced employee.• diversified portfolio of products that fits each segment needs• present good value for affordable price ( competitive advantages).

Weaknesses

• No Brand Recognition•No Profitability• Negative perception (poor quality)•No effective distribution channels

Opportunities

• High potential for the Market.• uncovered segments that needs different flavors of chocolate with affordable price.• Financial crises affects people to spend less on chocolate

Threats

• Fierce competition from Cadbury and other local brands.• Market is saturated with different chocolate and confectionery products global and local brands.

TOWS Analysis

SegmentationChocolate Market definition:Demographics:Gender : Majority are Kids from 5-16, Females and youth.Income: High, Medium and low.Geographic: -Urban: Cairo, Alex (buying foreign& Local brands) - size:60% from chocolate consumers.-Rural: Delta, Upper Egypt ( buying local brands) – size :40% from chocolate consumers.

Bases of Segmentation: Geographic: Urban & Rural Demographic:Income, Gender, Age Behavioral: usage rate (daily, weekly, monthly…)

Segments Profile

A areas is not mentioned in the shape although they exist WITH SIZE 10% as they represent very few percentage in the ruler

TargetingOur Target segment profile: Geographic: Urban & rural (middle &poor cities) Demographic:- Gender: primary kids, secondary parents (specially young mother)- Age: kids from 5-16, and young mothers 30 and above- Income: Middle in urban from 5000 to 1000, Rural from 3000 to 800 LE. Low in urban less than 1000, Rural less than 800 LE.- Areas: Middle &poor cities Behavioral: usage rate2 to 3 times weekly Total Size: 60 % from the chocolate consumers.

Our Target Strategy: Product specialization strategy

Targeting• Why we will target this Segment?Based on 2 factors as follows:1- Company’s objectives& resources: as it will help us to increase our market share through cannibalizing from Cadbury market share, and we could serve them by offering good quality of chocolate.

2- Target Attractiveness: in many ways as follows: - Size : our target 60% of the chocolate consumers.-Growth: as per market trends which is presenting diversified portfolio to fit every body taste.- Profitable: we have the chance to be profitable as we have a diversified portfolio flavors with affordable price that fits our target segment.- Low risk: as the research findings demonstrates that there’s a need for a good value for an affordable price

Positioning• Differentiation:Serving our target segment by delivering good value / quality for an affordable price that can be compatible.

• Our target segment competitors position:

- Cadbury: Brand recognition as (good product and quality, high price)- Unidentified local brands: poor quality, cheap price

• Our positioning:to be perceived by our target segment as the brand which gives good quality with different flavors ( based on heritage- taste of our memories), for an affordable price (cheaper than Cadbury but more than the local brands), Using our sloganمعاه “ وكبرنا حبناه “ طعم

ProductOur product is: Milk chocolate bar• Contains:

sugar, cocoa butter, cocoa liquor, milk or milk powder, and vanilla•Features:- Different flavors: classic, mint, nut and crispy.-Different sizes: small bar – medium bar – large bar.-Different kinds of vitamins that strengthen kids health.•Packaging:We will use a new appealing, attractive design for packing our product

Brand: Corona Chocolate Bar

Product• Our product life cycle & planning strategy:- Chocolate Industry has reached the Maturity level, which means that we need to apply market penetration strategy throw: face lifting for the brand in our promotion activities, emphasizing our diversified portfolio (good value) with affordable price and a new appealing packing.Also we need to increase our channels of distribution (intensive distribution) to reach to our segments properly.

Old Product New Product

Old

M.

New

M.

Price• Pricing Objective:Develop a cost oriented strategy to penetrate the Market with affordable prices and good quality product

• Demand : Elastic

• Selecting pricing method:After estimating company costs; fixed, variable and average, and also analyzing competitors 'cost, prices and offers, we select “ Going Rate Pricing ” due to the maturity level, so we will offer good value with affordable price (less than Cadbury & a compatible product quality, Meanwhile our price will more than the unidentified local brands who has poor quality but cheap price)

Place• Type of marketing channel of Distribution:We will use 3 models (Zero level; through Mobile Outlets van will be distributed in all Governorates to cover the urban & Rural / One level / Two level ) as follows:

• Channel strategy:Applying Intensive Distribution in all Egypt Urban & Rural in the middle and poor areas

• Our product is B to C & B to B

Promotion Mix• Promotion Objective:1- Make an awareness of corona chocolate new brand (face lifting) based on its heritage “Nostalgia”, and its good value (good quality with different flavor).2- understanding the product: different flavors & sizes for an affordable price .3- Believe in our product: to trust in the brand and building loyalty.4- Buying the product and increase its’ sales & profits.• Promotion strategy:We will use pull & push strategy• Promotion Message:We will Apply a consistent message through an integrated campaign using the elements of our promotion Mix, which will contain:Phase 1: Mixing the Heritage “Nostalgia” with our new Brand identity by using our slogan.Phase2: exploring our diversified portfolio with its youthful, funky, Modern and delicious tastePhase 3: Corona For community.

Promotion MixAdvertisingTV & Radio ads:

- Recommended Script - The story of the Ads showing them how the history repeat it self, through a kid back from school took a corona chocolate bar (new look and delicious taste) as gift from his teacher, and how he was so happy and taste it good, which reminds his parents with their memories with corona chocolate and its good quality.

Promotion Mix• AdvertisingDanglers & Poster

Promotion Mix• AdvertisingPress & Magazine Ad

Promotion Mix• AdvertisingOut doors

Promotion MixSales promotions:- Put selling chocolate Machine in railway stations & super get.- Put chocolate fridge in the groceries urban&rural- Kiosks in clubs, in front of schools and Entertaining places; ex: dream park.-offers with the beginning of the schools for only 3 weeks ( with each large bar of chocolate a gift corona branded; pens, eraser, Colored pencils…)

Personal selling:- Rent potential places in side the stores or shelf spaces in key account customers stores ex: El Mahmal- Ragab Sons.

Promotion MixPublic relations:

- Sponsoring Social Events such as : chocolate festival at El saway wheel (chocolate shapes) – orphan day.- Publishing advertorials about corona success stories.

Thank you