RANI Fruit Drinks. Marketing Plan. September 2012
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1 RANI Fruit Drinks Marketing Plan September 2012
2 Executive Summary 30 years ago, RANI was launched in Saudi Arabia, produced at Aujan Industries' own state-of-the-art facilities. Since then, RANI has experienced tremendous sales growth across the Middle East, North Africa, Europe and other export markets. Over the years RANI has established the unique brand property, Float, the fruit juice with real fruit pieces ( chunks ), which has highly differentiated the brand within the fruit juice category. The drink is now sold in over 70 countries and generates sales revenue above US$800 million. RANI is one of the leading juice brands in the Middle East and the flagship brand of Aujan Industries, a family operation established in 1905, now the largest privately-owned, independent soft drink and confectionery marketer, manufacturer and direct distributor in the Middle East. In early 2012, Aujan Industries and The Coca-Cola Company (NYSE: KO) announced a binding agreement for The Coca-Cola Company to acquire 45% of the equity in Aujan's existing beverage business for US$980 Million. RANI Drinks are imported to Sri Lanka by Bon Vivre (Pvt) Ltd, the sole authorized importer, and distributed by Rani Lanka (Pvt) Ltd., the authorized master distributor. Both companies are owned and managed by the same Directors. RANI in Brief RANI is a brand of Aujan Industries, Saudi Arabia, with manufacturing plants in Saudi, Dubai and Iran More than 4,000 people shake a RANI drink every minute RANI sold more than 2.1 billion units in 2011 Aujan passed US$1 billion annual sales mark in 2012 Early 2012, Coca-Cola bought 45% equity stake in Aujan for US$ 980 million. RANI Float has natural fruit pieces, carefully picked from the best crops across the world RANI Float celebrates its 30th anniversary in 2012 The words most often used to describe RANI are the following: Unique, young, innovative, fun, popular, cool. With the introduction of RANI Fruit drinks, Rani Lanka aims to provide the best quality FMCG goods to the Sri Lankan market. Product Specifications RANI drinks will initially be made available in ready-to-drink cans of 240ml each. In the future larger bottles and tetra packs will also be made available. A case of drinks contains 24 cans. RANI Fruit Drinks are available in 5 flavours : Orange, Pineapple, Mango, Peach and Strawberry/Banana, all with real fruit pieces inside. RANI Fruit Drinks contain a minimum of 18% real fruit in each can. RANI Fruit Drink cans have an MRP of LKRs140/= each. RANI Fruit Drink cans have been approved by SLSI and labeled in English and Sinhalese according to Min of Health guidelines. RANI Fruit Drink cans have a shelf life of 12 months from the date of production.
3 Market Outlook Sri Lanka recorded the highest nominal growth of 21% and a volume growth of 11.7% in the FMCG category within the Asia- Pacific region This sector remained as one of the highest contributors to the total market's earnings with increased levels of consumer spending by both domestic consumers and foreign tourists Sri Lanka is expected to reach US$ 4,000 per capita income by 2015 Consumer preference is taking a new shape where the value added branding culture is becoming more and more prominent The global juice market is expected to see growth to exceed $92 billion by 2015 Global fruit and vegetable juice market will exceed 64 billion liters by 2015 Market drivers include rising awareness surrounding health and nutrition Lower content fruit juices (under 25% juice), are expected to intrude on the 100% fruit juice market segment due to the influence of pricing and marketing Situational Analysis The food and beverage industry in Sri Lanka has become a thriving sector in the economy propelled by the post war optimism and reaping maximum benefits from peace dividends since May Contribution to the Gross Domestic Product (GDP) by the food and beverages industry was recorded at 7.9 % of GDP by end of 3rd quarter According to market research published by AC Nielsen based on retail audit for the period January - September 2011, Sri Lanka recorded the highest nominal growth of 21% and a volume growth of 11.7% in the FMCG category within the Asia-Pacific region. The research further elaborate that the major contribution for this growth is from the F&B sector. Furthermore, this sector remained as one of the highest contributors to the total market's earnings and it is expected that this high level of earnings will remain in the medium term with increased levels of consumer spending by both domestic consumers and foreign tourists. As Sri Lanka enters into a high growth trajectory coupled with a targeted US$ 4,000 per capita income by 2015, consumer preference is also taking a new shape where the value added branding culture is becoming more and more prominent. This trend in consumer buying behaviour will transform the Sri Lankan society into a new dimension by creating more and more opportunities especially in branded F&B category and will continue to grow further resulting from life style changes and social value changes of consumers. The global juice market, which encompasses fruit and vegetable juice, nectars, and fruit drinks, is expected to see growth to exceed $92 billion by The segment is lead by 100% fruit juice with over 30% market share. According to Global Industry Analysts, the global fruit and vegetable juice market will exceed 64 billion liters by Market drivers include rising awareness surrounding health and nutrition. Evolving lifestyle trends toward healthier options and widespread awareness of health epidemics such as obesity will see categories like carbonated drinks stall slightly, while demand for juices, and fruit juices in particular, continues to rise mainly due to increasing consumer awareness of the health benefits of a balanced diet. Lower content fruit juices, or under 25% juice, are expected to intrude on the 100% fruit juice market segment due to the influence of pricing and marketing. Ref:
4 Target Market RANI Fruit Drinks are generally for all consumers. However it is the middle class 24 to 60 year olds that are more likely to buy the product, while the parent buying the drink for their children 5 14 is also a high proportion. When advertising, RANI has a primary target market of year olds, and a secondary market of 8-50 age group. This target base is primarily people with healthy lifestyles, or with the motivation to be healthy. A huge benefit of the product is that it provides most of a person s daily needed fruit intake and vitamins. It can be a complete, easy, on-the-go snack, which can be ideal for adults and children alike. We heavily target middle-income mothers because of the trend of health consciousness on the rise. Targeting mothers also mean they in turn influence and affect their children s drinking habits and diets. This is apart from the fact that a large number of women usually or always do the grocery shopping. With RANI being a ready-to-drink fruit juice, the pick-up and go element of the drink is highly attractive to the young upwardly mobile generation. This in turn increases the brand visibility and encourages peer loyalty. RANI is to be launched initially in Colombo and its suburbs where the disposable capital per capita is higher and the likelihood of trying a new product is also higher. As with all products, the success in Colombo and it s suburbs will automatically flow to the other provinces. Target Market Total Population of Sri Lanka over 21 million of which nearly 3 million live in Colombo and it s suburbs 23.2% of 0-14year olds in Colombo. 62% are aged and 14.9% are over 60 years old. RANI will initially be made available in Colombo and its suburbs, before launching island wide. RANI Fruit Drinks come in five different flavours to suit all tastes RANI Drinks have over 18% fruit pieces and Juice RANI is a far more healthier drink containing Vitamins, than carbonated soft drinks RANI is an ideal drink for the health conscious RANI can be a drink on the go, a drink in a restaurant, a cocktail or mixture at a bar, or even one for the kids to take to school The availability of RANI Fruit Drinks in five different flavours also means that the variety of choice to suit all tastes exists within the same brand. Emphasis on RANI Fruit drinks being healthy (as compared to carbonated soft drinks), containing real fruit pieces, with vitamin C is some of the major elements encouraging the target market /2010 data Colombo & Suburbs
5 SWOT Strengths Fresh, high in fruit content, healthy, easy on the go drink, price competitive as compared to other imported fruit drinks Weaknesses New brand, initial tasting required, some sugar added, price as compared to average per capita Opportunities - No major competition for same type of drink with fruit pieces, people are becoming more health conscious, increase in average per capita Threats Similar local drink being produced, Sri Lankan Rupee devaluing which will increase import costs, Coca Cola deciding to handle he distribution of RANI (which is only a threat to Rani Lanka) RANI aims to capture 10% of the target market with 75% brand awareness in the first 12 months. Starting initially with in-store sampling, then moving to promotions, PR campaigns, social media will be followed by direct advertising campaigns in magazines, newspapers and eventually radio and TV RANI Fruit Drinks are well known among Sri Lankans who have been to the Middle East at any time. With a 30-year-old history and selling over 2.1 billion drinks per annum, 4,000 drinks a minute, Rani has gained huge market share and awareness in the Middle East. Returning Sri Lankans from the Middle East, be it on vacation or for permanent residency, are another natural target market where brand awareness is already established, disposable capital is relatively high and brand loyalty and empathy exists. SWOT Analysis Strengths Fresh Energetic High in Fruit content High in Vitamins Attractive Packaging Health conscious image Easy on the go drink Price compared to other imported drinks Opportunities No major competitor in the current market for the same type of drinks with fruit pieces Trend of people moving away from carbonated soft drinks to more healthier drinks Increase in Tourism Increase in per capita income Marketing Objectives Weaknesses New brand to some of the target market Added Sugar Initial tasting required Price as compared to locally produced drinks Price compared to average per capita income Threats Similar fruit drink being locally produced LKR Currency value decreasing, increasing import costs and taxes Coca Cola taking up direct import and distribution (a threat to Rani Lanka distribution, not to the retails stores or outlets. RANI LANKA aims to obtain 10% market share, with 75% brand awareness of RANI Fruit Drinks in our target market, primarily targeting Colombo and its suburbs in the initial one year. Much of the Marketing budget is initially allocated to in-store sampling and Social Media marketing campaigns through Facebook. This will be combined with sales promotions and advertising using existing supermarket methods such as flyers, magazines and other campaigns.
6 Distribution Covers the following : Modern Trade Hypermarkets, Supermarkets & Chain Stores Retail Outlets Grocery Shops, Pharmacies Hospitality Hotels, Casinos, Bars, Hospitals Diners Restaurants, Coffee Shops, Canteens & Eateries Over 3,000 cases, 73,000 cans per shipment Initially 3 weeks from order to stock Min quantities in stock 2,000 cases (over 50,000 cans) Warehouse in Sedawatta MIT Cargo Shelf life 12 months from production Return Policy Accepted within 3 months to expiry Logistics RANI Fruit Drinks are imported to Sri Lanka from its manufacturing plant in Dubai, by the sole authorized dealer Bon Vivre (Private) Limited. The distribution of RANI drinks are handled by Rani Lanka (Private) Limited. Ownership and Directors of both companies are the same. All drinks are imported in 20 containers containing 3,078 cases of mixed varieties (over 73,000 cans per shipment). On clearing, the stock is stored at a closed secure warehouse in Sedawatta managed by MIT Cargo (Aitken Spencers). The cycle of order to warehouse stock is approximately 3 weeks, where 1 week is for container load, 1 week for shipping time and 1 week for clearing, labeling and storage. This will be reduced to 2 weeks in the future as the sales become stabilized. A minimum stock quantity of 2,000 cases (approx. 50,000 cans) will be maintained at the Sedawatta warehouse at all times during the initial phase. This will be evaluated as the sales increase and minimum stock will be adjusted accordingly. Distribution is divided into 4 categories : Modern Trade - Chain stores and hyper/supermarkets Retail Outlet - Grocery shops, pharmacies Hospitality Hotels, Casinos, bars and hospitals Diners Restaurants, coffee shops, canteens and other eateries Currently the deliveries of goods to Modern Trade and Hospitality is handled directly by Rani Lanka while retail outlets and Diners have been outsourced to a third-party companies specializing in distribution and delivery. As sales grows and RANI is introduced beyond Colombo and its suburbs, further segregation based on distribution area will also be implemented to improve efficient deliveries. All RANI Fruit Drink cans have a shelf life of 12 months from date of production. RANI Fruit Drinks are supplied on consignment basis with flexible and competitive payment terms to supermarkets and other retails outlets. RANI has a return policy as long as the returns are made within 3 months of expiry date.
7 Evaluation and Control Sales analysis Monitor the total sales and sales activity to improve profitability. Identify most profitable and less profitable customers. Categorize most profitable region and less profitable region. Depending on the sale analysis, improve marketing strategy and sales forecasting. Market Share Analysis Marketing share analysis includes each suburb across Colombo followed by all provinces. Sale strategy will have to change depending on the sales results in each region. Sales strategies would be more comprehensive in stronger areas. This analysis will show a percentage of customers who will buy RANI. Marketing campaign, such as free sampling will focus on specific neighborhoods. Audit & Control Checks are in place to monitor the efficiency of RANI distribution and customer satisfaction Regular visits by representatives to all retail outlets and other distribution channels followed by management checks will ensure efficiency in sales and distribution Market surveys of customer awareness and satisfaction will be carried out in November 2013 Effectiveness of all marketing and advertising methods will be evaluated Feedback methods in various forms will be put in place monitoring progress Distribution Analysis Sales and order process will be recorded. All the sales through distribution will show amounts of orders and sales in specific locations. Distribution methods, costs will be included in this analysis. Retail outlets will be contacted to get their feedback on delivery satisfaction including response to orders and efficiency of delivery. Customer Analysis Identifying customer - who are they, what they need and want. Customers will be segmented depending on their value. Monitor life time value, improve customer satisfaction and increase profitability. What are the customers buying habits? How often do they buy RANI? Why do they prefer RANI Fruit Drinks instead of other juices? Where do they buy the product? Program analysis Customer reaction to promotion and advertisement will be evaluated. How many customers will purchase RANI Fruit Drinks in promotion period? How they react to online and magazine commercials. Customer satisfaction survey will be generated November 2013.
8 RANI LANKA (PVT) LIMITED 19/13 Udayarthoppu Road Negombo T: F:
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