Free marketing plan sample of a food manufacturer and distributor (branding issues), by

WilliFood (Israel) Inc.

Brand Identity

Marketing Plan 2011

Denis Astahov & Arie Lev

Company Profile

• Willi-Food International Is one of the largest Israel’s food importer

• Willi-Food’s shares are traded on NASDAQ’s Small Cap Market under the symbol of (WILC)

• The Company’s current product list includes some 1000 food products produced especially for Willi-Food

• The Company is importing from 250 food manufacturers and suppliers throughout the world

• Willi-Food is supplying its products to all major food chains in Israel, like: Supersol, Mega and others, with almost 1200 points of sales

• The company was founded in 1994 by the Williger brothers after they sold the previous family business including the brand “Williger” and the famous “Tuna Williger” product line to NETO group

• Sales January‐June 2010 US$45.8 Million, Forecast for 2010 US$100 Million

• Employees: Approx. 250

1.0 Current Situation

1.1 Macro Environmental Analysis

– Economical – Israel is a consumer market oriented country.

Food is a major component in the average expenses basket of the average Israeli family (NIS 1000-1500 per month).

– Social – The average Israeli family spend a lot of time and money around food consumption every month.

Being an immigrates country (mainly Russia) and having a deep influence of the religious people (Kosher, GlattKosher), affect the food industry.

1.2 Market and Industry Analysis

• Willifood operates as a supplier to food chains and food stores in the food consumer industry.

• Market Attractiveness (C/o Porter Model)• Threat of new entrants (9) X 0.4 = 3.6

• Threat of substitutes (8) X 0.2 = 1.6

• Bargaining power of customers (8) X 0.2 = 1.6

• Bargaining power of suppliers (4) X 0.1 = 0.4

• The level of market competitiveness is: 7.2

• The entrance to this market requires high investment and is high risk.

1.3 Competitive Analysis

• 1.3.1 Direct Competitors– Tnuva

– Strauss-Elite

– Nestle-Osem

– Uniliver

– Neto

– Vita

• 1.3.2 Indirect Competitors– Delicatessen Shops

– Restaurants

Supplier Rank

1.4 Market Segmentation

• Food consumer market

• Food chains & small private food stores

• Food market is driven by price point

• Loyalty to product is low to medium

• Loyalty to brands is high

1.5 Marketing Mix

• 2010 marketing focus was on QOS and competitive prices

• Promoting mix mainly focused on Business to business B2B Indirect channel like Supersol, Mega, etc.

• Advertisements and sales promotions had a lower budget

Offer mix Service Physical Price Brand

30% 15% 50% 5%

PromotionMix

Distributional Channel Marketing Communication

Indirect Advertisement Sales Promotions

80% 5% 15%

1.6 SWOTStrengths Weaknesses

• Unique products in portfolio• Pricing range• Quantity of suppliers• High Quality Kosher products• Strong Financial Background

• Strong dependency on food chains• No direct sale to end customers• Weak awareness of Brand name and Brand

identity

Opportunities Threats

Depend on us• Increase of demand for Health/Organic

products• Allocate new products and new suppliers

to meet the increased demand

Depend on us• Loosing food brands to competitors• Choose to import and invest on bad

products

Not depend on us• New Market Trends

Not depend on us• Very strong competition• Exchange rate• Food chains payment credit terms and

required discounts

1.7 Positioning

• Williger Unique Sale Propositions includes a large portfolio of products in a varied price range• Competitors: Osem, StraussElite, Tnuva, Vita, Neto• Segment: Food Consumers Market

• According to Perceptional map Willifood is located in the Excellent position of high range of Products and low price range

1.8 Source of Information• Willifood Home Page www.willi-food.co.il• Financial Data

http://finance.yahoo.com/q?s=WILC• Competitors and Market Share

http://www.storenext.co.il/SuppRank.aspx• Tuna Consumer Market in Israel

http://www.news1.co.il/Archive/0020-D-114222-00.html

• Interview with Mr. Yossi Williger CEO, at 2.12.2010

2.0 Marketing Objectives 2011

Marketing Objectives 2011

2.1 We will provide Willi-food a Product Development Strategy which will include a Re-arranging of their current product portfolio and a Re-branding process to increase their brand identity and increase the consumers loyalty to Willi-Food.

2.2 We will choose “Willi Tuna” as the leading character to increase brand identity and connect between kids, health and sandwiches for school .

2.3 In the next year we will explore Willifood leading product to the consumers by advertisement, commercial promos and public relationship articles in the media

Appendix

Marketing Objectives 2011

2.4 Next year we will focus on our leading product “Willi-Tuna” in order for the consumer to associate its brand to the one of Willi-food. This will increase awareness for Willi-Food brand name.

2.5 Next year we will re-arrange the products portfolio by focusing on leading products and not mix and mash.

2.6 Next year we plan to increase our tuna can sales from 25,000,000 NIS to 37,500,000 NIS which is a 50% increase.

Appendix

3.0 Yearly Action Plan

Yearly Action Plan

3.1 Evaluate a mutual campaign in supermarkets with “Angel Bakery” to provide 50% for their 6 buns-health package when buying a 5-can Tuna Williger package.

3.2 Retaining marketing activities is not valid this year.

3.3 Create a character which will represent the tuna can product line. The character name should be Willi. “Willi” will approach the kids as target customers to help increase the brand identity.

3.4 We will create a PR and advertisement campaign around the character of Willi, the tuna fish Appendix

Yearly Action Plan

3.6 GANTT

Task Responsibility Schedule

1 Create The Campaign in points

of sale around Willi the Tuna

Fish (Signboards)

Advertaisment

Agency

To be ready for

January 1, 2011

2 Cooperation with Angel Bakery

for a promo sale in the food

chains

Marketing

Department

To be ready for

January 15, 2011

3 PR for the rebranding of Willi Marketing

Department

To be ready for

December 30,

2010

3.7 Marketing Budget

• Willi-food revenue for 2010 forecast is ~ 400 Million NIS

• 5% marketing funds for 2011 is 2 Million NIS

INCOME OUTCOME

Capital 90% 1.8M NIS

Advertisement

PR

Promo Campaign

80% 1.6M NIS

Coop with Angel

Bakery

10% 0.2M NIS Marketing

Research

5% 0.1M NIS

Non Allocated Funds 15% 0.3M NIS

TOTAL 100% 2.0M NIS TOTAL 100% 2.0M NIS

4.0 Control Procedures4.1 Every month the CEO and Marketing manager will meet in order to control and review progress of the marketing plan.

4.2 We will use customer surveys and financial reports to assess brand identify and marketing progress.

4.3 Relevant days for additional PR and advertisement:1st-May, 1st-September as it’s “Back to school” day.

4.4 Our revised criteria of success are financial reports and unique visitors of our web site.

END

Annex• We believe that the major issue that Willi-food have today is related to

their Brand Identity

• Having so many product lines in so many different categories of food products, without any strong brand identity

Creates for Willie-food a consumer market which are not loyalty to the brand and are buying on opportunistic base

• This situation creates for Willi-food an inferiority position against their major competitors like: OSEM, NETO, which have a very strong brand identity

• We will provide Willi-food a Product Development Strategy, which will include a Re-arranging of their current product portfolio And a RE-branding process to increase their brand identity and increase the consumers loyalty to Willi-food

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Annex – Products Catalog

•1000 products•Mix and Mash without any common line•Customers cannot identify the brand•Customers cannot create loyalty for the brand

ANEX – Campaign Advertisement

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Yearly Forecast for 2011

• Yearly Forecast Sales for “Willi-Tuna”

• Price = 5 NIS customer market price

• Price for Supermarkets = 2.5 NIS

• Quantity of point of sale for the campaign = 500

• Monthly sales forecast per POS = 2500 cans

• CY 2011 = 12 months

• Sales Forecast = 2.5 x 500 x 2500 x 12 = 37.500.000 NIS– (increase by 50% from CY 2010)

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