Origin of the report: We are students of East West University from department of Business administration. We were asked to do a Term Paper on Marketing Plan for a New….
Marketing Plan For Corona
Market research: The market research is divided into two main parts the situation analysis and environmental analysis. A-situation analysis: The SOOT is a method under the situation analysis that examines the Strengths and Weaknesses of a company as well as the Opportunities and Threats within the market. The current strengths and weaknesses while looking for future opportunities ,the SOOT analysis looks at both current and future situations, where it analyze the current strengths and weaknesses while looking for future opportunities and threats. Strengths Weakness Almost 10,000 employees are working for the company.
The company is a respected employer that values its workforce. Corona has been presence since a long time ago, so it becomes a well known brand in the confectionery industry. The company provides chocolates with high quality as well as convenient price. The perception of the consumers regarding the product quality. Production cost is high Lack of promotional materials for Corona’s products. Opportunities Threats Increasing or creating product awareness. Improve relationship with external retailers. Acquisition of the most famous and well known brand names. Intense competition in the confectionery market. New competitors entering the market.
There is no brand loyalty in the chocolate market as the consumers shift frequently Marketing Plan: Introducing Rein Light Chocolate in the Egyptian Market By minimization to other brands. Micromanagement situation analysis: The Micromanagement includes some factors like customers, competitors, intermediaries, company and suppliers; the Micromanagement has immediate effect on the company’s abilities to operate effectively in the market. A-company The Alexandria confectionery & chocolate company Corona was established year 1919 by Tommy Sorest, to become the first Confectionery & Chocolate Company in the Egyptian market.
Corona was privatized in 2000, bought by Sonic group “Eng. Same Sad”, one of the leading private holdings that have diversity within the Egyptian Market & Beyond. Corona’s company plays in seven main factories with around 70 products under names of Corona and Needle like coca powder,chocolates,wafers,biscuits,candies(hard and soft),gums, Jelly and others. Corona’s growth on the Egyptian market is the result of a successful combination between the launch of Corona’s new product lines, distinguishing the brand as an innovator in term of product and recipes and its communication campaign, which includes an appealing visual identity.
Company is committed to provide high quality products and always seeks to apply global standards and specifications such as ‘SO. Follow-up to all ingredients of the products to be in accordance with the regulations agreed, for gaining high quality products and also to ensure delicious taste that our clients expects and deserves. Furthermore Corona attracts it’s customers by it’s Keenness in the discovery of new markets like, “the Middle East and North Africa” by participating in international and local fairs, this leads to great presence in the markets and generates opportunities or traders to learn more about our products.
The company continues keenness to participate in various exhibitions in both the domestic and international markets; exhibitions in international markets like “Corona on the sweets Middle East” which is the second international exhibition for the sweets and confectionery, bakery, snack food and ice and” Corona on the ISM FAIR” the ISM Fair is one of the biggest sweets and confectionery exhibitions in Europe.
Domestic events like “Corona on the food gate” which is the first BIB event of its kind in Egypt and is targeting international visitors worldwide and “Corona in super racket fair” supermarket Expo is the Middle East leading and best-known food retailing event. A-suppliers The company is not only dependent on customers, competitors and distributors; they are also influenced by their suppliers. Increases in supply costs can push up prices, making other alternatives more attractive. For example, increases in the price of cacao butter and cacao solids make chocolate more attractive.
Company need to monitor supply availability, such as shortage due to labor strikes or political factors, as these can cause customer dissatisfaction and lost sales. The company also needs to be sensitive to alternative input materials that can be substituted for those of existing suppliers if the latter’s price rise or availability diminished significantly. Presently, the internal suppliers of the company are “Away For Food Additives” which supplies the company with Starch, “White Refined Sugar “supplies Sugar, “United Economic Group (EGG)” supplies milk powder.
As far as the external supplies are concerned, they are “Distant Cacao Company: United States” supplying with Cocoa Nibs, Cocoa Butter ,Cocoa Powder , “Gaining Changed Commercial & Trade Co. Ltd” Supply with glucose syrup. C-Competitors As market research is used to find about markets, target market and their needs and also market research is to investigate our competitors and to examine their products, marketing techniques, price and location.
In our market research here we depend on secondary data for investigating our competitors, here are the sources we depend on for collecting our data: Marketing intelligence to examine competitor’s products and services, this can be done through: Looking for website of our competitor’s. Observing advertisements for their products in newspapers and magazines. Here is the main review for our competitors in the sugar free chocolate industry: I-WILBUR is one of the market leaders of the chocolate industry; Wilbur was founded by American enterprise.
Born at the height of the Industrial Revolution as a general confectionery in 1865, Wilbur founders chose to narrow their focus in 1884, to specialize in the production – and perfection – of chocolate alone. Wilbur produces a selection of chocolate substitutes that are sugar free, yet flavor rich. VIVA Orion”* chocolate flavored Carrying medium strength milk chocolaty flavor, this cocoa butter based coating is lender with creamy silkiness. Sweetened with maillot. Viscosity: 115 VIVA Pegasus”* dark chocolate flavored This cocoa butter based blend is semisweet in character, fudge-like in consistency, and full of rich, aromatic overtones.
Sweetened with maillot. Viscosity: 115 WHEW Galaxy”* white sugar tree confectionery nuggets Ivory colored nuggets that are ideal for coating or as inclusions in bakery applications. Sweetened with maillot. Viscosity: 100 Strengths of Wilbur chocolate that it provide chocolate’s workshop which is a 3-day, intimate, interactive and participatory seminar designed for those who are interested n starting their own confectionery business and by that it helps in enhancing the chocolate industry, and also high quality of the chocolate as it provide details of its recipes and this gives credibility for the company. – HERSHEY is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate related grocery products. The company also is a leader in the gum and mint category. HERSHEY provide wide range of sugar free chocolate like sugar free peppermint patties, sugar free caramel filled chocolates, sugar free mildly sweet housecoats, sugar free peanut butter cup miniatures and sugar free chocolate and caramel filled assortment.
From strengths of Hershey chocolate is that they provide wide range of methods for marketing for their products by using innovative idea and one of its latest ideas in 2010 HERSHEY CREATE YOUR OWN CANDY BAR , an interactive ,hands on attraction that immerses you in the candy bar creation process, this is first of its kind attraction gives you ability to select you favorite candy bar ingredients and develop your own package for candy bar, and also HERSHEY provide did range of sugar free chocolate with different flavors. Intermediaries The company is using the services of the distributors such as key accounts and retailers to supply end users with Rein Light chocolate. These channel intermediaries perform many valuable services, including breaking bulk and making products available to customers where and when they want them, intermediaries for distributing Rein Light, include key accounts and retailers like super markets, hyper markets, local convenience stores, cafés and pharmacies E-Customers Market research is used to find out about market, target market and their needs, monitors, market trends and customer satisfaction with the products and services.
Most market research involves theses steps: I-Denned the problem: the problem that many people like to eat chocolate but they are afraid from gaining weight as chocolate has high calories, and in our company Corona we try to solve this problem to make our customers interested by eating chocolate and this was implemented by developing new product which is Rein Light it’s a sugar free chocolate which has low calories for those who are making diet, watching their weight or even has disease like diabetics. : the research design: we will depend on is descriptive research, as it will seek to describe the uses of our product, the most important advantage of the descriptive research to identify needs of the market segment and how to meet their needs in a way better than competitors 3-latently data types and sources Secondary data that is previously collected internally from the firm like internal records for sales of Corona or externally from published data on magazines and newspapers and website for Corona itself as it has part for enquires.
Primary data which is data collected tort the first time in order to understand references, desires and needs for our product and by collecting primary data we would be able to measure the degree of acceptance of the customers to our product, to know more about market trends. 4-Design data collection forms and questionnaire Primary data was collected in form of questionnaire given to group of people to show their preferences and acceptance for our product and whether to successfully launch Rein Light chocolate in the Egyptian market. -Determine sample plan We depend on simple random sample: randomly selected sample from a large population, giving all individuals in the sample an equal chance to be chosen and his will prevent bias, the questionnaire was given to group of respondents personally as we found that best contact method for our questionnaire would be personally 6-Analyze and interpret the data The questionnaire we made was important for the project to show us a right path towards the launching of our product Rein Light.
The results of questionnaire show that: Regarding the gender that eats the chocolate 50% male and 50% female. The group age which eat the chocolate 57% from 26-45 years and 43% from 17-25 years. In order to measure the degree of succeeding in launching the Rein Light will be assured by percentage of people who love Corona chocolate and we found from the survey that 50% of the sample we selected like Corona chocolate and 50% don’t like Corona chocolate, and that percentage was effective to indicate that we can launch the Rein Light sugar free chocolate from Corona.
To show to which extent people eat chocolate we found that 50% of the sample eat chocolate 2-3 times a week and 50% eat chocolate once a week, and that percentage shows that chocolate is a product which is consumed. In order to know reason behind eating sugar free chocolate, we found that 43% eat sugar free chocolate as they are making diet, 21% or its nutritional values, 21% for its low calories and 15% eat sugar free chocolate as its packaging was attractive for them.
To know what will attract customers to try the new Rein Light chocolate in the market, we found that 57% will be encouraged to try Rein Light chocolate as free sample taste, 21% for its low calories, 14% for promotional activities and 80% for the packaging of Rein Light. To show the effectiveness of the packaging for the product Rein Light, the survey show that 50% of the sample always emphasizes that packaging is important, 36% often see that canning is important and 14% seldom see that packaging is effective.
For attracting customers and to ensure that customer will be aware of our product, 42% of the sample answers that promotional materials is the best way for making customers aware tot the Rein Light ,22% sees that presence tot Rein Light chocolate at clinics tot nutrition will make customers aware of the product,7% of the sample selects that presence of Rein Light at gym will make customers aware of our new product and 29% believes that making events will be useful method for increasing awareness of people toward Rein Light.
To know the suitable place for the presence of Rein Light, we found that 92% of the sample sees that large super markers will be suitable place for selling Rein Light chocolate and 8% believes that gym will be appropriate for selling Rein Light. As overall conclusion behind the survey we discovered important points and this will be implemented in the market strategy for our product. This was outline of our questionnaire We are asking for your opinion on sugar free chocolate from Corona which is Rein Light, It will help us for our project in launching a new chocolate from Corona.
This will only take 5 minutes of your time. Optional Name: Mobile Number: Address: 1 -Gender A-Male B-Female 2-To which of following age groups do you belong? A-II-arrears B-17-arrears c-26-arrears D-46-arrears 3-Do you like to eat Corona chocolate? A-yes a-no In case that you didn’t like to eat Corona chocolate, which brand of chocolate do you eat; please specify? 4-how many times you buy chocolate? A-once every day 8-2-3 times a week C-once a week D-on special occasion only E-others, please specify 5-winy do you usually eat sugar tree chocolate?
A-nutritional values a-making diet C-low calories C)-packaging 6-What would entice you to try out new Rein Light chocolate in the market? A- sample taste a-promotional activities C-calories D-brand of chocolate E-packaging 7- Do you think that packaging is an important item in sugar free chocolate? A-always a-often C-seldom D-never 8-what is the best way to make customers aware of Rein Light? A-promotional materials a-to make chocolate available at clinics of nutrition C-gym C)-by making events 9-where do you usually buy sugar free chocolate from?
A-large super markets a-gym C-kiosks C)-others, specify I()-Recommendations: Thanks for support Marketing Objectives A-TO initiate strong awareness for the launch of Rein Light chocolate throughout 000,000 consumers within age of (17-45) years in the Egyptian market, by using effective strategies. B- To gain 25% of the market share in the chocolate confectionery C- To achieve 20% net profit on the selling price as the company will produce 450,000 units per month.
Marketing strategy Segmentation Market segmentation is the first of three steps in developing marketing strategy it can be defined as grouping potential consumers who have common needs and will respond similarly to a marketing action, segmentation will help company to respond more effectively to groups of prospective buyers and this increase sales, profit and ROI(return on investment) for the company.
In further elaboration, here in our project for Rein Light chocolate we will segment our market according to geographic, demographic, cryptographic and behavioral segmentation. I-Geographic segmentation is dividing of the overall market into groups on the basis of population location, regarding to our product Rein Light chocolate, geographic segmentation will be according to cities like Cairo,Gaza, Alexandria, Hardhat and Charm el sheikh,Luxury and Portrait ; Rein Light will focus more on regions like Mohammedanism,Madam,Hellholes,El Rehab and Tattoos El Shames. -Demographic segmentation: the most frequently used method of dividing markets is by demographic factors. Consequently, many of the available data on both markets and media audiences are broken down by demographic classifications. A-Age: the primary method of analyzing markets is to divide our consumers into age and to accurately analyze their needs and wants, regarding the results brought up by our marketing research; the range of age for our Rein Light chocolate will be range from 17 to 45 years old. -Life stage: the life stage for Rein Light chocolate will be youth and adults and that was displayed in the age range from 17-45 years old. C-Gender: another method of analyzing our market according to gender, for Rein Light chocolate our target consumers will be female and male as both of them making diet or watching their weight , this was displayed in the results of our survey in marketing research phase. D-Socioeconomic: our sugar free chocolate aim to target middle social class, as the price will be convenient. -Cryptographic segmentation: is a method of dividing market on the bases of psychology and lifestyle habits of consumers, marketing a product requires a deep understanding of the consumers psychology, along with their needs, in order for the product to be accepted ,some of he common variables that fall under the category of cryptographic segmentation are personality values and lifestyle, in this case for Rein Light chocolate, the lifestyle for consumers buying Rein Light are those who simply enjoy taking care of their bodies as they are making diet, watching their weight or even have disease like diabetics. -Behavioral segmentation: divides population based on their behavior, the way the consumers respond to, use or know of a product, forms of behavioral segmentation are: A-Benefits sought: Segmenting markets according to the product unifies that are expected from product, Rein Light’s benefit is based on the consumers making diet, watching their weight or have disease like diabetics as they will find that Rein Light chocolate bar is healthy and tasty, as Rein Light chocolate will utilize sweetener substitutes, sensitive individuals may experience.
B-Usage rates: the usage can be determined in form of heavy, moderate or light usage, for our product Rein Light, we will depend on segmenting consumers to those who are in continuous usage for chocolate(heavy usage) as despite making diet they still love chocolate and want to eat it . C-Loyalty: there are two ways to grow business, first to acquire new consumers and second one to retain existing consumers, the more loyal our consumers, the more our consumer base will increase.
Here tort Rein Light, we will depend on segmenting market for those who are loyal to our brand Corona and using it since long time, consequently those consumers will be most likely to experience our new Rein Light chocolate. Targeting Once we have successfully identified the segments within the market, the next step is targeting which involves choosing a segment or segments to communicate our product to the selected segments.
Main factors that are considered when evaluating potential target markets: Segment size and growth: Each firm is likely to have minimum size requirements for a market segment to be considered financially viable, Segments with strong growth rates are more attractive as firms can gain market share from primary demand, in our project here we found that segment of consumers within age of 17-45 years occupies about 40% of the total population which is considered as large segment in size and the growth rate of this segment is ranging from 1 to 2% every year plus having great awareness towards healthy reduces as they like to reshape their bodies.
Segment Structural Attractiveness: A-competitors: generally firms do not want to compete in markets where there are dominant market leaders, as they tend to be quite aggressive to new competitors, for our product Rein Light chocolate, we have 2 main competitors Wilbur and Hershey but these competitors are targeting socioeconomic A as they have high prices, but for our product Rein Light, we will focus on consumers in the middle class, in order to be able to pay for our sugar free chocolate plus producing chocolate bar with high quality. Distribution channels: Strong relationships between the firm and the distribution channels would be of considered as attractiveness, in the distribution channels we have different ones ranging from hypermarkets, supermarkets, cafés, and pharmacies; to the local convenience stores by these different channels we will achieve great presence in the Egyptian market Target level Differentiated strategy: company attempts to appeal to two or more clearly defined market segments.
In our marketing plan for Rein Light chocolate, the primary target market is the middle class, consumers within age of 17 till 45 years who are making diet, watching their weight or have disease like diabetics. Positioning Positioning is the process by which marketers try to create an image in the minds of their target market for its product, brand or organization. This table illustrates the steps for creating positioning strategy for our product Rein Light chocolate: Who we are?
Corona chocolate was the first chocolate bar manufactured in Alexandria and it’s the market leader in chocolate and confectionery industry, for more than 80 years, Corona has different types of chocolate, biscuits, and wafers as well as soft and hard candies. Target market Will be consumers within age of 17-45 years, occupying socioeconomic B who are making diet, watching their weight or even has disease like diabetes.
Value difference Value of difference here is the image as Corona insists through past years to provide consistency and credibility for its customers through its diverse products. Competitive advantage The competitive advantage or the benefit that Corona will provide is the distinctive Rein Light chocolate which is unlike the other types tot chocolate bars as I t will touch on health as well as taste for being sugar free. Selecting an overall positioning strategy
Regarding our new product which is Rein Light chocolate, we will select the strategy of same benefit with less price, as the other competitors like Wilbur and Hershey sugar free chocolate provide chocolate with high price and this figure illustrates the position of Rein Light chocolate against its competitors in the Egyptian market Positioning statement for Rein Light chocolate To consumers within age of 17-45 years in socioeconomic B who simply enjoy taking care of their body and or health, Rein Light is a chocolate from Corona which is sugar free that satisfies your need for eating healthy and tasty chocolate with low lories.
Marketing mix Marketing mix is the combination of the elements of marketing and what role each element plays in promoting for products and services and delivering those products and services to the consumers. The 4 Up’s of the Marketing Mix Product What’s product? Rein Light Chocolate, sugar free Core Product benefits: With Rein Light Sugar Free Chocolate, you don’t have to sacrifice a thing; this delectable chocolate is Just made for those who want tasty chocolate for whole life experience, without high added calories. Rein Light Chocolate is sweetened naturally, a plant-based ingredient with zero calories.