Words: 3006
We would like to thank our course supervisor for all of her support and valuable assistance at every stage in the completion of this report. Regards M Fijian All Khan Letter of Transmittal September 2, 201 0 Ms. Nadia Shattuck Professor of Advertising Institute of Business Management Koran Creek Karachi-751 00, Pakistan Dear Ma’am, Here is the report on “Advertising Strategy of Tartan” you have asked us to prepare. We submit this report to you on September 2, 2010. We have made this report using different primary and secondary sources.
By gathering research through various websites, including the home page of NEGRO FOODS LTD. And by carefully observing the current advertising and marketing strategy of Tartan, we were able to make up for its drawbacks and rate our own advertising strategy which we consider appropriate for Tartan with respect to its target market’s needs. It has been an honor studying from you and we thank you for giving us the knowledge we have gained under your guidance in this course of Advertising.
Sincerely, Mohammad Fijian All Amaze Small ID:71 92 Danish Rica ID:5639 Executive Summary ID:7126 The objective of this report is to firstly, conduct an in depth critical analysis of the advertisement of Tartan Tea Whitener. Secondly, to recommend and justify a new advertisement campaign. The ultimate objective for all of this detailed analysis is to apply the concepts studied in the course of Advertising (taken as an elective course in Marketing). This report highlights the following aspects: It highlights the market size, growth in the Tea whitener market, major competitors.
Gives details about Negro Foods mission statement, products it offers and the main features and benefits that Tartan tea whitener offers. Main strengths, weaknesses, threats and opportunities of Tartan are discussed. The consumer profile; demographics and the factors influencing their purchase decisions are discussed. The direct and indirect monitors analysis, target market analysis, message and media strategies used by the competitors. The critical analysis of the actual print and television advertisements, which are running on different TV’ and radio channels.
The main proposals being offered by us to amend in the existing advertising campaign, including the Advertising objectives which include both over all and specific objectives positioning strategies are mentioned by positioning statement, key features/ benefits and emotional appeal. Budget allocation among different medium of communication and break up between different Medias are shown with justification. Current media strategies along with recommendations and justification for the new proposed media mix.
Current message strategies along with recommendations for the new proposed strategy. Current promotional mix along with the new promotional mix and its justification are discussed. Industry Analysis Market Size The Tea whitener industry is a niche, which was first explored by Nestle with its product Everyday that has a 27% market share in Karachi. The whitener industry leader is undoubtedly Open milk, which is widely used throughout the country including Karachi and has a 41 % market share.
Tartan tea whitener, which was launched in 2007, is the strongest branded competitor of Nestle Everyday and it comprises of 13% of the market. The rest 19% comprises of other branded milk products, which are used for the purpose of whitening tea (including condensed milk). *Estimates taken from an Independent market survey Market Share of the all tea whiteners in the market (Karachi) I Open milk I Nestle Everyday | 27% | Tarragon 13% Others | 19% | Total | 100% | Growth Since the introduction of Nestle Everyday, many brands tried their luck in the tea whitener market but none could sustain their presence.
Brands like Candida came and went before anyone could even understand their marketing campaign or distinguish the target market they claimed to cater. The niche was created due to the love for tea in the country and Nestle everyday was quick to develop a powder tea whitener and pounce on the opportunity with both hands. The phenomenon of the perfect blend of milk and tea has for long been the mystery for the tea-loving nation and following the observing fact marketers believe that the market of tea whitener is still very large.
Open milk dominates the market due to the cheap and easy availability. This notion can be changed and the market has a growth opportunity to the extent that it cannot be known until it is fully explored. Nestle Everyday portraying its target market as middle class income group has its limitation as many upper/ middle class people use either branded liquid milk or open milk in certain cases. This market is more suited to the lower end consumer market that cannot spend a lot of money in whitening their tea. Negro foods launched its tea whitener “Tartan’ in 2007.
Seeing the opportunity in the niche market Tartan focused its strategy towards the low-end consumer market that has a emend for a low priced tea whitener and makes the major portion of the population in the country, in both rural and urban centers. People also use condensed milk for whitening their tea and Comely and other smaller brands too are a part of the industry, but due to their non-commercial attitude, the brands do not have much part to play in the market and do not influence the growth opportunities of other brands.
Current trends/Developments affecting the promotion program The sort of industry a tea whitener like Tartan operates in is one, which has a consistent demand. The fact that the population has a love affair with tea assures that the demand is reliable. This gives a clear indication that the tea whitener industry has to have a flowing and a planned promotion program with just a threat of new entrants in the market being the major concern for the players. Tartan can focus its promotional campaign according to the seasonal changes.
Winter and Summer time, which sees a high rate of wedding functions, can be focused to promote a brand like Tartan. In such wedding functions, people consume more tea as the attendants are offered tea as refreshment after food. As Tartan offers itself for the low end nonuser market it has naturally priced itself at a very modest rate which may not be much of a concern for the target market even during times of high inflation. In fact Tartan’s main focus is to provide a low priced tea whitener for the consumers, therefore hard economic times is not a concern for the company.
COMPANY SNAPSHOT Vision: “To be the Premiere Pakistani Enterprise with a global reach ; passionately pursuing value creation for all stakeholders” Mission Statement “To twofold, to help farmers maximize their farm produce by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in petrochemicals, information technology, infrastructure, food and other agriculture sectors. And further describing the adoption fashion they say,” In pursuing the mission we shall at all times be guided in our conduct and decision making by our core values. ” From Sees to Negro In 1 957, the search for oil by Pack Stannic, an Sees/Mobil joint venture led to the discovery of the Mari Gas field near Darkie – a small, remote area in Upper Kinds province at the time. Sees proposed the establishment of a urea Lana in that area, which led to a fertilizer plant agreement, signed in 1964. In the subsequent year, Sees Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares owned by Sees and 25% by the general public.
The construction of a urea plant commenced at Darkie in 1 966 and production began in 1968. At US $43 million with an annual production capacity of 173,000 tons, it was the single largest foreign investment by a multinational corporation in Pakistan at the time. A full-fledged marketing organization was established which undertook agronomic programs to educate the farmers of Pakistan. As the nation’s first fertilizer brand, Negro (then Sees) helped modernize traditional farming practices to boost farm yields, directly impacting the quality of life not only for farmers and their families, but for the nation at large.
As a result of these efforts, consumption of fertilizers increased in Pakistan, paving the way for the Compass branded urea called “Negro”, an acronym for “Energy for Growth”. As part of an international name change program, Sees became Exxon in 1 978 and the Company was renamed Exxon Chemical Pakistan Limited. The Company continued to prosper as it relentlessly pursued productivity gains and strives o attain professional excellence. In 1991 , Exxon decided to divest its fertilizer business on a global basis.
The employees of Exxon Chemical Pakistan Limited, in partnership with leading international and local financial institutions, bought out Oxen’s 75% equity. This was at the time and perhaps still is the most successful employee buy-out in the corporate history of Pakistan. Renamed as Negro Chemical Pakistan Limited, the Company has gone from strength to strength, reflected in its consistent financial performance, growth of the core fertilizer business, and diversification into there businesses.
Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovative optimizing our resources, Negro relocated fertilizer-manufacturing plants from the I-J and US to its Darkie plant site – an international first. Negro Chemical Pakistan emitted then sat rated a journey of venturing into other sectors including foods, energy, industrial control and automation, PVC resin manufacturing and marketing, and chemical terminal and storage. In 2009, plans were announced of demeaning the fertilizer business into an independent operating company.
The expansion and growth in the company necessitated a change in the way the company operated and conducted business. Keeping in view the operations of multi category businesses, expansion strategy and growth vision, the management decided that the various businesses would be better served if the Company was converted to a holding company. As a result, it was decided to Demeter the fertilizer business and establish a holding company structure to manage the affairs of various businesses.
Negro Fertilizers Limited was incorporated in June 2009 to manage the fertilizer business post demurrer. The demurrer required the approval of the High Court of Kinds, which was granted on December 9, 2009 after obtaining the requisite approvals from the creditors and shareholders of the Company. The demurrer became effective from January 1 , 2010. Consequently, all fertilizer business assets and liabilities have been transferred to Negro Fertilizers Limited against the issue of shares to the Company.
To reflect the change in the scope of mandate and scale of operations, Negro Chemical Pakistan Limited has been renamed as ‘Negro Corporation Limited’ with effect from January 1 , 2010. Negro Corp., as the holding company is responsible for the long-term vision of the company, overseeing the performance of the subsidiaries and affiliates, allocation of capital, management of talent, leadership development, HER guiding policies, leadership role in public relations and CARS activities, control structures, legal and IT support.
Negro Corp. will maintain a lean structure with a focused scope, allowing maximum empowerment to the subsidiaries and affiliates to drive the operations of their respective organizations. Products camp; Services Engross wide spectrum of products and services clearly shows the diversity in heir businesses, each one designed to make life better for its customers.
Fertilizers By Negro Chemical Pakistan Limited a specific product line that focuses on balanced crop nutrition and higher yield for the farmer I PVC Resin By Negro Polymer ; Chemicals Limited A synthetic resin, composed of repeating units of vinyl chloride. It is very versatile and is used in a wide variety of products Chemical handling ; Storage By Negro Peak Terminal Limited A state of the art jetty and terminal at Port Assam, Karachi for handling and storage of LAP and bulk liquid chemicals I Industrial Automation By
Vance (formerly known as Negro Innovative Automation Pat. Limited) Providing process control solutions to industrial units and management software solutions I Foods By Negro Foods Limited State of the art dairy processing plant I Power Generation By Negro Energy Limited Converting wasted flare gas into energy at the 217 MM power plant I Foods Eloper: Standardized at 3. 5% fat, Lopper’s is a premium, OUT all-purpose milk. Lowell HCI (High Calcium, Low Fat) Lowell is premium quality milk for the health conscience.
I Eloper Cream : OUT Cream standardized at 40% fat I Tartan: Liquid and powder tea whitener Negro Foods Limited is subsidiary of Negro Chemical Pakistan Ltd. , which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer, and chemicals. Negro Foods started its business operations in March 2006 and with the successful launch of Eloper Milk, Tartan, Lowell, and Eloper cream, it has established itself as a major player in the foods business.
Negro Foods has already set up two processing plants at Sucker and Swahili. With the ever-expanding milk collection network and processing facilities, the Supply Chain has geared up or the growing sales of our products. Brands of Negro F-odds Tartan milk * Tartan, Milk whitener launched in August, 2007 * Swahili plant commissioned, which will result in efficiencies in logistics cost and increase capacity to kick LAP * 1000 imported cows farm Features of Product: * Tea whitener * Only source of lactose * Gives tea the perfect smell, taste and color.
SOOT ANALYSIS Strengths * Since Tartan is a product of Negro foods limited, naturally it has a strong corporate backing, which allows the brand to establish itself without many hindrances. The brand is well aware of the issues and how to deal with them n an FMC environment thanks to its well-established brands like Eloper and Lowell. * Tartan, being a product of a large corporation has sufficient of funds at its disposal, which allows the brand to carry out its marketing and promotional activities smoothly. * Low priced product allows Tartan to market itself to a large portion of the population.
Therefore, low pricing does not serve as a barrier when purchasing Tartan. * Negro Foods has established a state of the art processing plant, which uses vegetable fat as a main ingredient to produce the liquid tea whitener. In turn reducing the costs aromatically and making the product very cost effective. * Tartan by introducing a powder tea whitener just like everyday has become stronger to tackle the tough competition. * The reality TV program “Hero Banana ski Tartan” was a Very creative and interesting concept to create an excitement amongst the target audience.
However, this concept would have been more suitable once the brand had achieved the major portion of growth stage and was entering its maturity. * Lastly, the tagging “Chaw aka Shah juror” is one, which fits for everyday purpose as it serves as a direction for the tea-loving nation. Weaknesses Perhaps the greatest weakness of the Tartan advertising campaign was the failure to highlight the functional benefit of the product. The over-reliance on the ‘filmy’ campaign triggered confusion in the minds of the consumer as to what purpose was the brand trying to fulfill. Secondly, the film mind gusty over the years has not been up to the mark and many people especially those at urban centers consider the film industry very cheap and vulgar. Thus, it prom opted a bad impression. * The campaign did not identify the target audience clearly and people were confused as to which portion of the market as being targeted especially with the flashy advertisements and the ‘film’ image. * Though the brand had a strong tagging, but because the brand did not reflect any functional benefit the message was not properly delivered.
The reads * The main threat for a big company like Negro foods and its brand Tartan might be an entry of new competition and the measures taken by the existing ones. Therefore, the brand will have to adopt every possible tactic to gain a market share and brand loyalty amongst consumers, which will help in deterring competition. * Now Tartan has a stagnant market share and only few people have been influenced by the brand. The brand will have to take every measure to improve the position before competing forces take advantage of this position. A large portion of the market relies on open milk for whitening tea and most people are resistant to change even in this time and age. It is going to be a huge task for the brand to change the perception and provide a product that serves the main purpose along with additional benefits to conquer the minds and hearts of the consumer. Opportunities * The brand Tartan can highlight the aspiration value of adopting the product. From a ‘Gala’ to a tea whitener is a step upwards anyone would be ready to have. If the functional benefits are highlighted along with the low price of the product, the brand has every possibility of becoming a super brand. A strong campaign can make the brand very big. * Since Tartan is available in one size of liquid milk, it has limited itself. Availability of different sizes can influence purchase of the brand and can increase sales. * Continuation of the ‘film’ approach in rural areas is a good trick to target the rural population, as it is they who are more influenced by the film industry. Keeping in mind that the functional benefit should be the main priority.
This can do wonders in increasing the sales in the rural areas. BUYER ANALYSIS Target market The current target market for Tartan includes the following classes/income groups: 1 . Lower class 2. Lower middle class The above-mentioned classes of society are mainly concerned with the promises offered by the product available in the market. People belonging to this segment are normally on a tight budget; they keep a track of the finances that are made in terms of household expenses and generally indulge in paving from time to time.