FY15 Marketing Strat SOLAL final

Fiscal Marketing Strategic Plan

Graham Boden : ProVance Consult

Marketing Plan

• Market Overview

• State of the Business

• Competitive Review

• Consumer Insights

• Learning and Implications (SWOT)

• Brand Architecture : Positioning

– Product Attributes, Functional and Emotional Benefits

• Marketing Objectives

• Marketing Strategic Thrusts

• Marketing Plan – Initiatives for Execution

• Communications Strategy

Market – Exec Summary

• Retail factors

• Communicate your Brand to consumers

• Collaborate with the retailers effectively

• Monitor Competitor activity & spend

• There is no HCP recommendation, and decisions

can be influenced at shelf.

• Brand awareness and equity are critical to the

retail shopper.

• Top 30 KVI’s need to be in stock at all times

• Retail product churn

• Pharmacy

• Growth opportunity as availability is heightened

• Brands that are growing :

• Have premium packaging

• Are building and reinforcing brand efficacy

• Are recommended by HCP and switching

takes place at the shelf

• If you don’t build the brand, you “play” the

lower price, value game

• Competitor advertising in front shop

Market size = R2, 5 billion (vitamins & minerals)

Retail market = R1, 35 billion ( 54% ) : + 10 % growth(Aztec, Dec 2012. Mat)

Pharmacy market = R1,15 billion ( 46% ) : + 39% growth(IMS, 2012)

• Reduction in the number of sku’s : focus on a smaller, more profitable range. Less Clutter• New products into categories that are differentiated and show growth opportunity

Major trading dynamics for SA Retailers

Shifting Route-to-MarketOperating models have to be re-thought in

response to the multi-format, multi-channel impact on RTM

New Formats, Channels

and CategoriesIncreasing pressure for seamless multi-channel engagement -‘Omni-channel’

strategy

VALUE !Economic pressure + competitive

landscapeAcross new categories, new segments,

and new products

Ongoing focus on supply chain

efficiencies

Shopper experience/ engagement Stores have to provide more – creative /

innovative / connecting experience720 degree communication

Brands and product showrooms

Explosion of online /social media- moving fast : Shopper journey / behaviour

shiftingSmartphones emerging as the most dominant

consumer technology platform

Key Stakeholder engagement &

collaborationJoint Business Planning critical to growth

Integrated Sustainability on the

agendathe measured scorecard + so-called

'benefit brands'

Back to Basics

An informed, demanding shopper who expects Quality, Price, Availability,

Knowledgeable Staff

Retail Services innovationValue Added Services a valuable source of

revenue and shopper attraction tool

Increasingly competitive landscapeBoth physical (sharp local players) and

online

Data and Information Overload Data availability increasing

Challenge of data to shopper, brand and category insight - Data analytics no longer

a nice-to-have ! MUST

Total South African population - 52 million

Total S A adult population (16+) - 35.3 million

Women in South Africa (16+) - 18.6 million

LSM 6 (16+) - 3.2 million




LSM 10 (16+) - 0.9 million

TOTAL 8 - 10 (16+) - 3.1 million

SOLAL target (35+) - 1.4 million

SA Demographics

Viable market

November 2011 TPM, IMS data

Market Analysis – Nov 2011

Market Analysis – Nov 2012

Has experienced the biggest growth from 18th to 11th

Has also grown into the top 20

Pharmacy Sales Trend : Feb ‘11 – Aug ‘13

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Aug 2013Jan 2013

April 2012

Jan 2012

Aug 2011

Aug 2012

SOLAL Trend Value R’s

Sales trend – Solal Top 10 Products

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000A

ug

Sep

t

Oct

No

v

Dec Jan

Feb

Mar

Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

Dec Jan

Feb

Mar

Ap

r

May Jun

Jul

Au

g

MELATONIN

KRILLOIL NEP OMEG3

5-HTP

DHEA

3 PER DAY

VITAMIN D3

CHOLEST-AWAY

STRESS DAMAGE CONT

CHROMIUM POLYNIC

IRVINGIA FAT BURN

August 2011 – August 2013

Units / Volume

Top 20 CompaniesMANUF MAT 2010 MAT 2011 GROWTH MAT 2012 GROWTH %CAT

Adcock Ingram Co 178 872 544.00 195 144 976.00 9.10 198 947 328.00 1.95 14.76

Vital Health Foods Co 144 887 184.00 143 457 216.00 -0.99 138 246 448.00 -3.63 10.26

Clicks Brand Co 89 219 448.00 109 931 024.00 23.21 124 525 968.00 13.28 9.24

Bayer Co 90 331 912.00 93 186 576.00 3.16 99 096 256.00 6.34 7.35

Wyeth Co 73 902 368.00 90 695 832.00 22.72 96 796 256.00 6.73 7.18

Herbex Cc Co 32 395 000.00 42 507 184.00 31.22 61 663 196.00 45.07 4.58

Usn Co 36 277 212.00 42 125 188.00 16.12 48 756 032.00 15.74 3.62

Pharma Natura (pty) Ltd Co 45 970 132.00 50 567 364.00 10.00 47 823 980.00 -5.43 3.55

Nativa (pty) Ltd Co 32 986 696.00 36 436 912.00 10.46 41 381 908.00 13.57 3.07

Bioforce S A Co 15 695 761.00 23 165 952.00 47.59 32 747 850.00 41.36 2.43

GSK Co 23 613 092.00 28 404 184.00 20.29 32 393 230.00 14.04 2.40

Pharma Choice Co 24 248 066.00 25 123 476.00 3.61 25 950 886.00 3.29 1.93

Value Added Life Co 13 815 814.00 17 607 162.00 27.44 24 824 632.00 40.99 1.84

Arctic Healthcare Co 17 579 562.00 20 548 334.00 16.89 23 492 430.00 14.33 1.74

Boehringer Co 17 045 712.00 19 199 058.00 12.63 22 110 246.00 15.16 1.64

Abbott Laboratories Co 17 612 490.00 19 341 904.00 9.82 20 172 744.00 4.30 1.50

Solal Tech Co 1 861 820.00 7 168 443.50 285.02 19 907 420.00 177.71 1.48 Georen Pharm Co 12 706 382.00 14 990 313.00 17.97 19 903 686.00 32.78 1.48

Aspen Pharmacare Co 23 248 464.00 19 254 354.00 -17.18 16 956 798.00 -11.93 1.26

Cipla Co 10 015 998.00 13 845 920.00 38.24 16 485 551.00 19.06 1.22

WE Need to Invest in line with Major competitors

We spend: R6 million on 120 products

Centrum spends R3million for printing JUST POS MATERIAL

Caltrate spends R3 million for 2 TV Bursts

Top 20 Brands

BRAND MAT 2010 MAT 2011 GROWTH MAT 2012 GROWTH %CAT

Vital 144 887 072.00 143 456 752.00 -0.99 138 246 448.00 -3.63 10.26

Clicks Brand 89 219 448.00 109 931 024.00 23.21 124 525 968.00 13.28 9.24

Centrum 54 289 048.00 66 130 476.00 21.81 71 827 928.00 8.62 5.33

Herbex 32 395 000.00 42 507 184.00 31.22 61 663 196.00 45.07 4.58

Berocca 45 127 984.00 51 788 788.00 14.76 58 365 412.00 12.70 4.33

Usn 36 277 212.00 42 125 188.00 16.12 48 756 032.00 15.74 3.62

Bio plus 25 198 680.00 29 988 838.00 19.01 35 346 876.00 17.87 2.62

Scotts Med 23 613 092.00 28 404 184.00 20.29 32 393 230.00 14.04 2.40

Probiflora 29 204 666.00 31 907 160.00 9.25 31 748 514.00 -0.50 2.36

Unique Formulations 25 682 630.00 30 038 654.00 16.96 29 246 052.00 -2.64 2.17

Cal-C-Vita 28 386 240.00 27 377 476.00 -3.55 28 696 142.00 4.82 2.13

Caltrate 19 613 316.00 24 565 356.00 25.25 24 968 326.00 1.64 1.85

Vitaforce 20 444 978.00 24 426 596.00 19.47 21 733 492.00 -11.03 1.61

Bio-Strath 10 577 795.00 13 566 974.00 28.26 21 489 440.00 58.40 1.59

Procydin 12 978 369.00 14 383 440.00 10.83 21 252 866.00 47.76 1.58

Ensure 17 609 828.00 19 340 856.00 9.83 20 172 744.00 4.30 1.50

Solal 1 861 820.00 7 168 443.50 285.02 19 907 420.00 177.71 1.48

Georen 12 706 382.00 14 990 313.00 17.97 19 903 686.00 32.78 1.48

Bettaway 19 503 834.00 19 373 206.00 -0.67 18 747 144.00 -3.23 1.39

Vita-Thion 13 935 330.00 14 204 575.00 1.93 17 947 862.00 26.35 1.33

Its Clear that investment in consumer and customer campaigns will drive growth in the category

eg, Huge growth in smaller niche products eg,Procydin & Biostrath can be seen from a 50% incr in spend

SwitchInvestmentInvestmentInvest

Invest

Invest

Invest

Invest

Vitamins sub-Category : Market size

Value Value Growth % YA Value Share of Total Vits & Supps

TOTAL MARKET MAT To 2011 MAT To 2012 MAT To 2011 MAT To 2012 MAT To 2011 MAT To 2012 DYA

Total Multivitamin 372 346 720 395 479 136 10.8 6.2 30.3 29.3 -1

Total Vitamin C 24 403 062 23 354 554 -3.7 -4.3 2 1.7 -0.3

Total Vitamin B 16 575 098 16 367 481 9.9 -1.3 1.3 1.2 -0.1

Scorbex (No 1 Vita C) 2 098 882 1 848 061 -6.2 -12 8.6 7.9 -0.7

*Aztec

• Total market shows growth from the increase in the multivitamin segment

• Single-shot vitamins declining in units (+ price incr) as consumers switch to combination products (convenience - fewer pills to swallow)

• Vita B Co is still performing relatively well on a value basis in a declining volume market. Energy / stress.

• Vita C category is over-traded with generics /DOB

Vitamins & Supps Competitors 12 months (Aug 2013)

JOHNSON & JOHNSON 219,745,860

BAYER 105,018,267

ASPEN 62,028,870

MERCK KGAA 59,266,772

VALUE ADDED LIFE 72,933,618

NOVARTIS 28,479,069

GEOREN PHARMACEUT. 22,670,095

VITAL HEALTH FOODS 20,962,919

SOLAL 20,021,531

BOEHRINGER INGEL 19,097,797

ADCOCK INGRAM 17,317,989

GLAXOSMITHKLINE 20,494,307

PHARMAFRICA 17,146,553

CIPLA MEDPRO 11,399,439

ARCTIC PHARMACEUT 9,960,265

IMMUNADUE HERBALS 11,330,460

9th

2011 Majors : store numbers by retailer

Retail Index Universe Update Page 14

4,5%

20

25

13

7

32

0

33

3

16

9

15

6

22

2

33

3

22

8

42

0

80

20

26

14

4

32

6 3

57

18

1

15

6

22

3

33

2

25

8

43

6

93

-

50

100

150

200

250

300

350

400

450

500

Pn

P H

ype

rmar

ket

Ch

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ers

Hyp

er

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ers

Sho

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te

Clic

ks

Dis

com

Pn

P S

up

erm

arke

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Pn

P F

amily

Wo

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ort

hs

Sup

ersp

ar

Spar

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Major store nrs by Retailer

2010 2011

Retail Index Universe Update Page 15

2012 Majors - Retailers by region

•Note: This is a live universe for scanning chains and store numbers will vary from month to month

EC FS GT KZN MP NW NC LP WC Oct '12 Dec ‘09

PnP Hypermarket 1 1 13 2 1 2 20 25

Checkers Hyper - 1 15 4 1 1 - - 4 26 20

Total Hypers 1 2 28 6 1 2 - - 6 46 45

Checkers 21 6 45 24 7 2 4 5 30 144 137

Shoprite 33 18 83 48 26 18 9 23 68 326 320

Clicks 35 15 144 47 20 17 4 10 65 357 333

Discom 19 8 49 29 19 7 7 14 29 181 169

PnP Supermarket 10 7 60 24 7 4 - 5 39 156 156

PnP Family 14 7 91 22 23 9 5 13 39 223 222

Woolworths 19 8 152 46 15 10 3 10 69 332 333

Superspar 41 3 69 54 20 10 2 20 39 258 228

Spar 54 34 125 70 31 27 11 15 69 436 420

Game/Dion 4 4 36 17 5 5 2 4 16 93 80

Total Supers 250 110 854 381 173 109 47 119 463 2,506 2,398

Total Majors 251 112 882 387 174 111 47 119 469 2,552 2,443

PLUS +

• Education around use of vitamins & supplements

• Consumer receptive to a more healthy lifestyle

• Noise in Media – information to assist with self medication

• Heavy investment from key players, who drive involvement of consumers and growth of category

• Different forms of offering (Tablets, Effervescent)

MINUS -

• Potential belief that fortified food with vitamins is sufficient

• Healthy levels of investment are directly related to volume and value growth and associated with Awareness – TV brands are leaders and they follow up with in-store activity

• Clear strategies and strong marketing campaigns have rewarded competitors with good consumer loyalty, trial and TOMA, with ROI of market share growth

• Continuous monitoring of Quality / Price points and quick reaction (Caltrate, Centrum) ensure market position is well defended

What has driven or limited growth for competitors?

• Vitamins education is improving - all players need to educate to attract users

• Market is receptive to new products that work at good prices (research)

• DOBs are promoted by front shop staff (incentivised)

• Brands Must engage with consumers and create TOMA vs competitors. Must make an impact !

• NPD should be in response to consumer/ category needs – can we create more gaps ?

• Great opportunity area : To Own innovation platform

Implications for Growth Plan

• 2012 Investment provided ROI for SOLAL

• ROI / Continued growth will be effective if regular media education and communication to consumer is maintained

• Must create an Emotional connection with SOLAL to break ties with competitor brands and create opportunities for switching through trial

• Position SOLAL as Aspirational, but monitor the price variance.


What has driven or limited growth for the Category?

Category Performance

MINUS -

• Presence of multivitamins, instead of single dose.

• Negative Publicity around absorption and bio-availability

• Cheaper alternatives devalue the category and leech off brand investment claims by incentivised switching at shelf

• Cheaper brands erode brand value and premium category

• Prevention mentality needs education : Perception change

• Awareness of contents in Multivitamins has driven consumers / convenience

• FMCG Retail distribution is limited due to the size of the category.

• Increase of in-store pharmacies is changing the landscape


• SOLAL reduced spending : Need to create more hype around “healthy aging” - take a market leadership position.

• Invest effectively and the effect on brand volume and value will be easy to see as new users buy into the brand offering / Value prop.

• Accelerated launch of New innovations – be First to market !


What has driven or limited growth for the segment?

Analysis & Conclusions

Consumer Insights : Brands in Vit & Supp

Source: eighty20 AMPS Data

RankWhich one brand of vitamins/supplements

do you buy most often? Total

1 Cal-C-Vita 14.52%

2 Berocca 12.52%

3 Bio plus 12.37%

4 Centrum 10.11%

5 Herbex 6.05%

6 Vital 5.55%

7 Turbovite 3.05%

8 Natures Health 2.87%

9 Scott's Emulsion 2.87%

10 Spirulina 2.16%

11 USN 1.68%

12 Bio-Strath 1.64%

13 Caltrate 1.58%

14 Ensure 1.52%

15 Bettaway 1.31%

16 Supradyn 1.18%

This data is based on LSM 5-10 and based on

Metropolitan Areas

Commercial Integration

Consumer

Manufac-turer

Distributors

Retail Channels/ Sales team

In storeShopperinterface

ConsumerDemandinterface

Businessinterface

Partnerinterface

POP Contact

System Efficacy

Strategic Alignment is KSF to Demand generation management

How strong is the brandValue prop ?

Brand strategies : Brand Needs to ‘come to Life’ in store

Customer engagement /trade participation

Channel strat, promos, merchandising

Influence shopper purchase decision

Convergence of consumer, retailer and manufacturer

Channel plans –Where to focus,

Play and Win

Ideation

Innovation

Project Management

Capable partners

Brand Strategy & Connections

Brand comm.

Internal Comm

Trade Data

Expert and consumer insights

Concept testing

Business Development

External Networks

Distributor Management

PeopleCapabilities

Strong Brand Driven Business

Brand Growth and Equity StrengthValueProposition

BrandLeadership

SuperiorProducts

CustomerLoyalty

StrategicInnovation

Marketing & Key Acct

Excellence

BusinessIntelligence

Distribution Channels

GrowthStrategies

New Product Development

Strategic Vision

Product Claims Development

SKU Rationalisation

ProcessExcellence

Corporate Brand Strategy

ATL/ BTL focus

Increased Investment

Customer/Trade Marketing

Sales Excellence

Consumer and shopper understanding

Expert / HCP understanding

Business Opportunities ; Partner Search

Available to more consumers

FMCG/ Pharmacy Collaboration

Commercial Integration / Business matrix

Seamless supply

Satisfied customers

Availability and accessibility

Highly Skilled, Motivated and Committed Marketing Team

Where are we now ?

SOLAL :

Situational Analysis

Financial Objective

Goals F13 (mil) F14 (mil) F15 (mil)

Sales R166 R194 (+17.3%) R 225 (+15%)

Rebates R11 R15

(7.55% of sales)

R20

Revenue R155 R180 R205

Brand Growth Waterfall

Notes

• Niche Market will show growth with investment and education.

• Competitive brand support in broader category will affect consumers

• Improved distribution in pharmacy, Clicks, Hypers will result in increased sales and Brand power claim

• Innovation is expected to increase both trial and consumption.

SOLAL : Growth Priorities

2013 New Products CompetitiveActivity

Merchandising/ Packaging

BrandAdvertising

Retailer support 2015

7

190 7.6 -1,2 4.6 11 6 225

Distribution

Implications for our

Growth PlanWhat’s worked /not worked in the past year & why?

Growth Performance Review

Impact on growth in the

last year

Connections

Expert

Positioning

Price

Placement

•Innovation should be driven by consumer need or gap opportunity in the market

• Innovation in product pipeline • What about Effervescent - convenience trend growing• Energy /Supplement drink

KEY: High LowMed

Product

•In store spend / co-op promos to accomplish stronger brand appeal

• We are Not utilising all distribution channels : deeper and full distribution of the brand within designated channels• in-store branding opportunities and consumer touch points

•Value erosion / need to justify the premium brand proposition - use certain products to draw consumers

• We are priced higher, as market leader. If Differentiated, its good, but ‘for like’ products, competitors are priced significantly lower at similar dosage

• Consumers buy-in to the ‘market leader’ power claim. We need to capitalize on this while we can.

• Build brand positioning and Drive market leadership in-store and at POS, support with Media TOMA

• Opportunity to target HCP to recommend Solal for anti-aging conditions

• Experts do not tend to recommend supplements, unless asked by the consumer. Scripting uncommon unless for Condition /Needs states

• Need to attract More New Users to encourage trial and thus grow brand loyalty

• Insufficient spend to defend and grow brand position vs. Other big brands, eg. Vital, Caltrate, Procydin : Market responds to media.

Include Geographic expansion, distribution, channel plans

Brand Growth

SWOT Analysis

STRENGTHS WEAKNESSES

Good Brand equity as ‘anti-aging’ specialists Seen as category leader in segment by Dischem Education function to consumers / market High Quality perception Dominant player within Dischem In-store visibility and merchandising

Lack of broader distribution / availability Premium pricing / niche target market Too many products in the range – tail end

complexities / dispersed focus on Top 60 Limited Advert & Promo spend

OPPORTUNITIES THREATS

Stronger ‘healthy -aging’ consumer positioning Leverage the preferred status with Dischem for

short term growth drivers Wider distribution through P ‘n P, ‘A stores’ SOLAL Brand should be available in Clicks (Ww?) Innovation / NPD pipeline – Education of

benefits and support claims Create a stronger Aspirational brand appeal -

“I want : the preferred choice”

Risk of 65% of business thru Dischem Low consumer knowledge – build perception

as the experts Competitors offer better Value for Money Highly competitive market – ‘me too’

category of ‘like’ products with private label proliferation

Total Vitamins market in Decline

Improve Retail Distribution

GROWTH OPPORTUNITY 2

• Consumers shop for supplements monthly in the grocery retail environment, especially if they know what they want or are a loyal user to a brand

• Consumers will make a special trip to the pharmacy as part of their monthly/ weekly shop since they prefer to get recommendations from experts /assistants –Deeper distribution opportunities within independent pharmacies ( 1800+ )

• Generally, there is a possibility that a Power claim will be more effective in a grocery retail environment (no influence) vs. pharmacy where assistants and pharmacists are able to switch consumers to other brands.

• Retail stores lend themselves well to cross merchandising in other health oriented sections ( display stands in veggie/fruit and juices/yogurt sections).


900 000 : 42%

Established BCI Market

Older, stable family men and womenMajority married : 45+ years

Value of Black Diamond

• RSA claimed consumer buying power R660 billion

• White claimed consumer buying power R230 billion (34%)• Black claimed consumer buying power R360 billion (54%)• Black Diamond claimed consumer buying power

R160 billion (24%)

• 15% of Black SA adult is responsible for 43% of Black buying power

RAPID GROWTH @ 30% per annum in past 5 years

Predictions for the future

• The Black Diamond market (LSM 7-10) will continue to grow into an even more powerful driver of consumer spending and the economy due to middle income quickly moving up the ladder of consumption :

• existing members advance in their positions

• more employment opportunities for BCI middle income to advance quicker

• better qualified and trained people move up the employment ranks as a result of investment in education, corporate development and promotions and the state BEE empowerment laws.

• As the market expands and evolves and consumers grapple increasingly with their individual aspirations on one hand and cultural influences on the other, it will become more complex, more fragmented and will present marketers with greater opportunity to expand their brands, but more challenges in terms of the psychographics within target market segments.

Penetration


• The brand is still in a Growth phase : out-performing the market

• The opportunity to Focus the brand offering and ensure direct association with specific ‘needs’ conditions : become the experts in focused conditions treatment

• Higher LSM BCI consumer groups who are focused on their health

• Availability of the brand to more consumers who are health conscious and not aware of SOLAL : regions, population groups

• Penetration of the brand into more consumer households and into newmarkets

Innovative new products


• Effervescent forms are the convenient trend – especially in the energy segment, it can easily be taken and can be launched in flavours

• For a market leading brand, line extensions can be used to improve shelf presence and SOS.

• We need to expand the Size of market as the leader - we will be able to grow the segment through investment!

• Capsule forms are viewed as ‘more premium’ by some consumers.

• Ready-to-Drink supplements are gaining presence in the top end and forecourts as a convenience item.


Convert Med HCPs to recommend SOLAL


• Expert recommendation gives comfort and assurance to consumers

• Prescriptions for supplements do not get substituted at pharmacy level

• Experts understand supplements on the market are similar in delivering benefits

• Science and clinical data are important, therefore brands/companies providing the most information get prescribed most often

Strategic Drivers

Grow our Brands Analyse customers and

competitorsBuild customer marketing

and key accounts

Strengthen Team capabilities

in 2015 - lack of Plans

Collaborate in planning, plan-

o-grams, merchandising and

in-store display

Execute successful customer

campaigns – short terms

drivers

Assess our market position

- Analyse data and present

customer insights

Identify market gaps and

improve market share

Develop Channel plans

- Effective integration of

commercial functions

Invigorate SOLAL brand ATL

- Partner Agencies appointed

Develop Key Growth

Strategies, that include NPD

Understand our consumers –

shopper behaviour

Plan to win: Assert Dominance

Multiple Brand Touchpoints

Awareness

Occasional campaigns / print

Pharmacy & Doctor

HCP, Expert, CredentialsConsumer Activations

Education, Trial, Expert,Top of Mind

DSTV/NatGeo Sponsorship

HIGH LSM : Awareness, Trial, Expert

In store Dominance with Claims substantiation

Expert, Credentials, Trial, Switch

Anti-Aging Prevention Prog.

Expert, Trial, Habit

Web & Social

Awareness, Expert, Innovator

Magazine & PR

Awareness, Trial, Expert

Target Market Profile

Need State : Occasion

I need protection to ensure I age healthily and without fear

I’m concerned about a particular condition.

Who is the Consumer :

Women bias : LSM 7 - 10, Age 35+

Psychographics : social conscious, aspire to be healthy, lifestyle aware, educated, tech advanced, worried

about aging, recommended by pharmacist, self diagnosing (empowered in store), prevention is better than cure,

buying a promise, believes supplements work, older females fear growing old, buy into protocols, protection

against ‘aging damage’, disciplined, committed,

Needs & Wants : Why

- I want to look young, successful, healthy, feel good, feel better, look sexy, prevent aging, have quality of life,

longevity, achievement, competitive, active, health, protection, maintain status quo, trendy, vitality, fear of getting

old, taking control, fear of the unknown

- I need to ensure that growing old will be pleasant

- I need help to age healthily : I want hope in active longevity

- I want to take control of how I age as best I can

- I want to be empowered to control my health

Decision Tree – Consumer Expectation

Price Quality Time Product

Benefits

Service

Benefits

Emotional

Benefits

Image Benefits

- Premium

But,

Competitive

- Belief,

perception,

better product

intrinsics,

pharmacy /

health

practitioners

endorsement =

good quality,

well known

brand, word of

mouth

- Accessible

- Find

Everywhere

- No side effects,

preventive, safe,

natural, claims, it

works/ delivers

on promises

- Retail

assistants to

have

information,

website to

offer

education

- Trusted,

healthy, feel

empowered,

superior, feel

better,

Give my

body the

best

Holistic, healthy

lifestyle,

overwhelming–

I need help

/confusing,

alternate,

generic products

Competitive Set :

Nutraceutical: Solgar, Biogen, Metagenics, Xymogen, Natrx, MNI

Patrick Holford, Centrum, Vital, Unique formulations (product specific)

Pharmaceutical: OTC, prescription

PRODUCT

• Huge range of products under the corporate brand - rationalise

• Specialists in Healthy aging solutions to meet needs /aging conditions

• High Quality: need to justify premium

• Proprietory ingredients / formulations

PACKAGING

• Strength of white Block , but can be confusing

• Create a more consumer friendly categorisation of products

• Dominate in store presence and offer opportunity for improved stand-out

PLACE

• Exclusive Distribution – Dis-chem and Top 600 pharmacies

• Opportunity for growth to broaden penetration to more consumers

• Create more availability

PROMOTION (ATL)

• Campaigns – partner with Ad Agency for ‘big idea’ for ATL execution through TV, print, radio, sponsorship

• Top end brand association : Dstv

• Media structure : Media agency to recommend media flow plans and focused spend for Improved ROI

SOLAL

PRESENCE

• Define priority ranking by channel – Dec’13 : Top 30 - 50 sku’s

• Identify Actions for Listings – Apr’14

• 6 month review

• Action distribution drive – Test Market : July ’14 (Clicks / Hypers)

• Review Jan ’15

PLACEMENT

• Define location in store, merchandise by needs condition, and implement shopper flow ( Dis-chem test stores)

• Design optimal Planogram layout : Apr’14

• Implement in July ’14 (by condition / consumer friendly in store)

PRICING

• Maintain 10 -15% price premium

• Develop learning's on price elasticity within product groups

• Determine optimal Price Index

• Monitor price switching vs competitors

PROMOTION (BTL)

• Customer co-op Display drives -merchandising / Visibility (s/term benefits)

• Broadsheets to support price – In line with Focus condition : 1 per quarter

• Campaigns – media innovation and carry through to store POS eg, shelf, big packs

SOLAL

Competitors

Centrum Vital

Strengths •Dominant Equity - high market share•International Brand•Huge Advertising investment – above and below the line•Great distribution•Emotional and functional campaigns•Line Ext opportunities being rolled out

•Very wide range – health care expert positioning•Leverage umbrella brand•Multiple touchpoints including free samples in magazines•Category re-invention in store.•Differentiated packaging campaign ?

Weaknesses •Over- Priced vs many players•Risk from Generic / DOBs copy (Spectrum)

•Pricing•Risk from DOBs

Opportunities • Strengthen their No 1 position• Convenience forms of product• from Multivitamins into single and specialist forms• Effervescent?

•New forms•More ATL

Threats • Generic & House Brands infringing on market share

• Amount of competition eroding market share

Competitors

Caltrate SOLGAR Osteochoice

Strengths •Dominant with high market share (tabs & chews)•International Brand•Huge Advertising investment – above and below the line•Strong Chronic House/ Dispensing Doctor support (TPM Data / Phy Data)

• Specialist range through health shops and selected retail• Similar formulations to SOLAL

•Superior formulation(contains folic acid, vitamin B6, B12 & C, Phytase)• Mltn co support - Sanofi Wynthrop•Very active with advertising (TV)•Strong “Choice” brand name•Can give to children from 4yrs

Weaknesses •Premium Priced•Flavour variants not performing (Mint & Orange)

•Pricing •Brand not well known

•ATL Advertising not driving growth

Opportunities •Line extensions under very strong International Brand name - International pipeline of products e.g. effervescent market

• Wider distribution and availability and advertising support

•Future line extensions•Having GP in ATL Ads may well pay off ….Endorsement : “the journey to good health begins with the right choice, PharmaChoice”

Threats •Generic & House Brands infringing on market share

• Cheaper me too products available

•Other competitor entrants

Where do we want to be ?

Superior Value –

Consumer Proposition

Strategic Objectives

Grow revenue from R155 mil (F13) to R194 mil (F14) to R225 mil in F15

Consumer: Grow Target market penetration in the 6 key ‘Needs’ segments

Availability by Region : Grow Clicks turnover (> R36 mil pa); grow GP, KZN, WC

and export (Nam, Bots) aggressively ; OFS

Channel: Grow Drug Chains (Dis-chem, Clicks), Wholesalers and Independent

Pharmacy Groups, strengthen Internet buying.

Improve Doctor detailing – develop a larger network of Doctor support

Customer: Utilise Dis-chem new ‘preferred’ relationship to achieve >15% growth

through ‘push’ campaigns (Key Act plan). Develop Clicks relationship and grow

Indep. Pharmacy num. distrib.

Focus on Detail aids and selling tools to increase scripting loyalty (education)

Products: Align (same, better, different) and grow product portfolio according to

the 6 consumer Needs groups – set growth objectives for KVI’s

Marketing KSF

Key Issues

Customer Support and collaboration

Ad Agency / Media planningSupport

Sales / Key Act Management

MarketKnowledge

&Insights

Resources –Brand Man & Analyst

Brand Health&

Differentiation

Differentiated Consumer Value Proposition

Value

Propositi

on

Price Quality Convenience Product

Benefits

Service

Benefits

Emotional

Benefits

Image

Benefits

Desired

Propo-

sition

Premium 1. Unique Product

- Prop. formulation

- Therapeutic dose

- Unique Extracts

2. Unique Prop.

- Healthy aging

specialists

3. Unique Processes

- Quality control

- Research

- Information supply

- Caps technology

- Information sharing

- Prop. product

development process

(peace of mind stability

programme)

Understand-

able, visible

(pack and

shelf block),

exclusivity

to Dischem

/selective

distribution,

easy to

consume,

many

products

Effective

Healthy

aging

POP self

diagnostic

/script

system to

simplify

decision

making in

store

- Need

education

Liberated,

empowered

to make

decisions

World

leaders in

aging

healthily

A 2-pronged strategy is necessary to grow the SOLAL brand :

I. LSM 7-10 – Strategy of Education

Strengthen brand positioning in consumer mind

Education on what products satisfy which needs states / conditions :

Features, Attributes and Benefits (FAB)

New product Focus on Specific market gaps

Instore POS / merchandising.

II. New Users – Strategy of Empowerment

Communicate the benefits of using SOLAL everyday for healthy aging

solutions

Focus on creating Aspiration to the brand : utilise mainstream

conditions / products to encourage first time usage

Increase distribution in order to provide availability to more consumers

Brand Strategy

Brand Strategy

Differentiation through stronger positioning of SOLAL as the ‘Healthy-

aging Specialist’ : a solution for ‘ALL’ your aging needs

Own the position of “healthy aging solutions” in the consumers mind -

important to make an emotional connection, empowerment and

positive choice – give a believable reason why ? Show that it Works –

efficacy.

Differentiate through brand associations linked to sponsorships,

partnerships and alliances. Have the brand in the associated lifestyle

that it resonates with the core target audience (DSTV)

Develop a ‘Big Idea’ that will become ‘the emotional hook’ that builds

the brand personality and attracts new users to become loyal users

CHARACTERSOLAL is your partner in assisting you with

aging, natural ingredients and the right vitamins to keep you healthy

ESSENCE

The brand that keep you healthy as you age

POINTS OF PARITYLarge Range of products for your every need

Keeps me Healthy

POINTS OF DIFFERENCEThe expert on vitamins and supplements for health and aging

Empowered with information at POP / advertisingI feel in control of my health as I age

REASON to BELIEVENatural supplements /Vitamins that work to manage aging

conditions

Maintaining Health People who believe in

preventative health care ; healthy aging

Active PeopleThose who need to manage their health to avoid ‘down-

time’ during busy life schedules

WHO

SOLAL : Brand Architecture

Offers the best products that are effective,

and will give your . body the

best chance of aging healthily

Top quality . products, with researched formulations that offer supportand peace of mind

Different, Empathy, . effective solutions, . innovative,

The brand you canTrust, caring

4. InsightIts important to maintain my health as I age and respond to changing body and health conditions

3. Target MarketFocused on Consumers who are wanting to maintain their health as they age, skewed towards Females, 35 - 60+ who need to look after their aging family needs without worry

2. Competitive Environment

Highly competitive market,Where consumers find too many choices and need education on the right solution for their needs

Effective healthyaging solutions :proved formulations,

research, support claims

9. EssenceHealthy Aging ; Improving and

Prolong the quality of Your Life

Give your body

. the best

1. Root StrengthsBetter quality extracts, prop. formulations and ingredients : solid

claims

Develop SOLAL Core Brand Key

See Communications StrategyAt the end of presentation

FY14 Budget – ATL

Allocation by Media

28%

14%

18%

18%

4%

18%Sponsorship

In-store Merch

Magazine / Press

Radio

Internet

Customer push

SOLAL Spend : FY 15 Expected Spend

Online PresenceWeb presence (basic) R200 000

Advertising / Brand EquityPackaging refreshIn store Messaging & POSAdvertorials - EducationTV CommercialSponsorship : Nat Geo/DSTVRadio ( 4 Bursts)Print : Magazine / Newspaper (6 Conditions)Production Media / Agency Retainer fee

R50 000R250 000R200 000R3 000 000 (?)R1 000 000R1 150 000R1 500 000R1 000 000R 500 000

New Product CampaignsLaunches (media)In store support

R1 000 000R500 000

Retail InitiativesClicksDischemIndependent pharmacyFood Retail - listings

R200 000R1000 000R200 000R250 000

KOL / HCPGP DrivePharmacist Drive

R150 000R50 000

FY15 R12 200 000 (R9,2mil) 4%

PRINT ADVERTSMale version Female version

Portfolio Strategy

Existing Products New Products

Existing Markets

Market Penetration-Incr. consumption of loyal users - Encourage Brand switch- New Channels to attract non-users

Product Development

- Line Extend- New prods

New Markets

Market Development

- Expand distribution- New Users- Stimulate trial- Strengthen positioning

Diversification

- New market Opportunities – Africa- Build or Buy Resources

New Product Development Matrix

Product PortfolioSOLAL : 225 SKU’s (?), 92%

80 products = 70% Turnover / 164 line items

1. Meds : 85%, 164 SKU’s

- Mood /Sleep 12 Sku’s, 15%

- Cardio 20 Sku’s, 13%

- Endocrine 14 Sku’s, 9%

- Essential fatty acids 7 Sku’s, 9%

- Gastro 8 Sku’s, 6%

- Aging 12 Sku’s, 6%

- Hormone 3 Sku’s, 5%

2. Foods : 5%, 54 Sku’s

3. Derma : 2%, 7 Sku’s

Health Prescriptions : 32 Sku’s, 7% + Health Complete : 6 Sku’s, 1%

Fine Pharmaceuticals : 2 Sku’s, 1%

Product Portfolio Plan

Goals Consumers Regions/

Export

Channels

(Selective

Distribution)

Customers

Adapt Existing

Range to

Focus on

where the

business is

being

Generated :

80/20

- Women bias

- LSM 8-10 ( extend to LSM 7)

- Age 35+ : for Families

Needs States / Conditions :• Hormonal

• Cancer

• Cardiovascular disease

• Diabetes

• Depression, insomnia and anxiety

• Stress and exhaustion

• Weight and thyroid

• Pain and inflammation

• Memory and brain

• Immune health boost

• Slow down Aging conditions

• Gut health

• Hair, skin and nails

• Eye health

• Sports performance enhancement

- GP 60%

- WC 20%

- KZN 9% *

- MP 5%

- EC 3%

- Other (OFS,

Limp, NC, NW)

4%

- Export (Nam,

Bots, Zim,) 2%

- Drug Chain 66%

- Wholesale pharmacy

15%

- Indep. pharmacy

Groups 7%

- HCP 2%

- Health shops 2%

-Top end retail 1%

- Compound pharm 4%

- Other (Internet, export,

doctors)

- FMCG 1%

- Drug chain :

• Dis-Chem 57%

• Clicks 9%

• Woolworths 1%

- Wholesale

Pharmacy

• Alpha Pharm 8%

• UPD 2%

• CJ Pharmacy 2%

• Norpharm 3%

- Independent

Pharmacy

• Wellness 1%

• Springbok

• Mopani (Nelspr)

• Morningside

Pharmacy

• Selected Doctors

Strategic Challenges

Consumer :

1. Product switching in store

2. Lost consumers due to lack of delivery on promise

3. Awareness, consideration, trial and repeat purchase

4. Complicated messaging – difficulty to see the Needs categories on shelf

5. Lack of consumer empathy / emotional connection

6. Creating the Value Proposition effectively

7. Advertising Budget Low % of turnover – invest X2 of value growth (+30%)

Customer :

1. Build the relationships through dedicated contact - Leverage the brand

2. Management of supply chain / stock – On shelf Pharma, fix service levels

3. In-store lack of knowledge / Education of Staff Advisors

4. Premium shelf space – manage merchandising effectively

5. Co-marketing spend on Promotions to move products off shelf in short term

6. Correct product range focus (sku analysis / GP%)

7. Need to develop other distribution channels – 2nd tier : to minimise risk of being held to

ransom by Dischem

Challenges to Overcome


Dis-Chem: 57% of business - Huge Risk1. Direct Product switching to Biogen – Action plan (brand ambassadors in store at month end)2. Manage relationship into joint collaboration and category growth 3. Improve relationships at store level and with h/o management 4. Product range – focus on growing the Top sellers (50 products)5. Packaging – cluttered and needs to be user friendly / ‘kiss’ per condition6. Store Activation – off shelf display and cross merchandising opportunity7. Key Account Customer Plans – what, when, where (sales execution)

Independent w/sale & Pharmacy and Doctor detailing

1. Lack of focus – opportunity to grow volume

2. Require relationship building and representation : resources

Regional Focus

1. GP, WC, KZN is the focus – What about OFS (can be as big as KZN – farmers wives)

2. Lack of focus – what is the action plan by region to grow ?

3. Insufficient representation to target indep. Pharmacy

4. Use sales agent for food Retail (3% of turnover) : need to list at h/o

Exports (Nam, Bots)

1. Sales strategy needs to be put in place – distrib. agencies that will endorse the brand

2. Regulatory issues to be fixed

3. Need to focus on education to the High LSM segment / target specific malls and stores


Products

1. Need more regular new product innovation – lead the market !

2. Product range modernisation and alignment according to core Needs segments

3. Too many slow moving SKU’s – tail end products clutter the business

4. Generic (product same) nature of products and processes need to bring prop. info

5. Names of products – confusion /misunderstanding for consumers

Internal Process / Resources to overcome

6. Product Leadership – Innovation Process & Speed to market

- Being First to market, creating hype

7. Customer management – Relationship management at Head office and store

- Customer service at all levels

- Intimacy with retailers : Grow the category in collaboration / partnership

8. Operations – Supply chain effectiveness

- Quality, cost and time

Strategic Plan - Objectives

Objectives

to

Achieve

Consumer

Increase

awareness,

consideration

and trial by X%

(Mkt share

measurement)

To increase

spontaneous

first brand

mention, risk

group

association with

advertising by

X% (Res)

To create high

impact

advertising with

a limited budget

– Media flow

plan

development

Channel

Partnerships : eg, retailers,

Agencies

Right product, in right stores,

at the right time, at the right

price

Top of Mind awareness,

knowledge and customer

support at head office and

store level

Knowledgeable sales people

on the retail floor

Identify the correct product

range for growth

Develop regional action plans

for GP, KZN and WC

Develop country sales plans

for entry into Nam and Bots

(Exports)

Customer

Partnership outcomes

Top 50 sku’s to achieve

15% growth – monthly

measurement vs PY

Develop customer plans

for Pharma w/s - Alpha,

CJ and Indep.

Pharmacies and target

Selected Doctors in high

LSM areas

Product

Increase %

contribution of new

products to total sales

Need to get to know

customers and drive

growth in collaboration

To keep a range of 150

SKU’s, but Top 80

carry the bulk of sales

focus

Modernise the current

packaging and product

range to be clustered

- speed to market

(must be instore by

July 2014)

Strategic Plan - Objectives

Functional

Activities

• Marketing

• Sales

• Key Accts

• R&D

• Support

Services

Consumer

TTL Integrated

campaign

(Advertising,

Website,

Packaging, POS,

Promotions,

Social Media,

etc.)

Big campaign

Idea – Brief

agency asap/

latest Jan’14

To create a

powerful emotive

Brand identifier

Channel

Engage in commercial

teams working together

Integrated support in store to

back advertising

Sales Training Program /

follow through to in-store

staff

Top 50 products, filter of

costing / GM%, customer

profitability, and shopper

relevance.

Build our 6 core ‘Needs’

awareness & product

categories

Appoint New Resources to

build a strong commercial

offering

Exports : Establish

regulatory foundation for

sales opportunity

Customer

Develop customer account

plans and marketing support

materials

Evaluate and modernise

products and cull slow

movers / once off sell-out

plan

Analysis of monthly sales

and action plans for

implementation

Product

approval,

implementation and

measurement of the

NPD process

Incentive

programme

promoting product

leadership strategy

Better customer

understanding and

co-operation

More innovation /

NPD ideas from

overseas

Reposition Brand

and product range

under the new

positioning strategy

How we going to get there ?

Planned Execution -

Scenario plans

Retailers

Dominate instore at point of contact : Moment of Truth – consumer interaction

Educate pharmacy and store shop assistants on recommending SOLAL as the Brand of choice for consumer needs

Influence retail campaign activity through understanding their category sales objectives

Establish retail partnerships – dual branding, cross pollination

Assess Retailer needs, and negotiate joint commitment to plans

National brand campaigns across all stores – sales execution

Marketing support to achieve brand objectives - develop campaigns

50 /50 funding on retail projects that drive dual branding

Enhancing Consumer loyalty

Packaging upgrade – communicate consumer friendly and Quali-safe

Merchandising and education booklets always available

Develop a ‘what’s New section’, innovation, keep interest

Reliable and Positive Shopping experience – consumers must easily get what they want every time, generates purchase habit & loyalty

Create perception of being a dominant authority in your field (World healthy aging), become a ‘destination shop’, must be convenient / availability

Proactive frontline staff, who are attentive and responsive to customer needs : cross-sell, up-sell, substitute sell (incentivise assistants)

Offer a variety of price points based on degree of differentiation : value for money, good, better, best continuum

Focus on customer satisfaction – meet retailers needs for category support

No-No’s : OOS, overpriced vs competitors, cluttered merchandise / difficult to find what you want, poor price marking, uninformed staff

Leverage The Brand

• Leverage the SOLAL brand to convert GPs, specialist doctors, pharmacists, pharmacy assistants currently prescribing / recommending Centrum, Pharmatonand other vitamin supplements to start to FOCUS their patients towards the SOLAL range instead (Expert recommendation – KOL and Education authority)

• Educate and attract uncommitted vitamin supplement users who use competitor brands to buy and use SOLAL through the advertising and marketing media attention (Consumer and shopper Focus – Influenced by trends, and Peer group recommendations)

• Give consumers a reason to believe and increase usage and awareness in the higher LSM primary target markets in line with the increased availability through the new distribution strategy

• Research Segmentation :• Where they shop most

– Biggest segment is Cough, cold, flu @ 33%

– Sleeping, pain and joints @ 27% (worsens with age)

– Diabetes, BP, Cholesterol @ 10% (highest risk with aging)

– Allergies, Sinus, respiratory @ 12%

– Digestive, Gastro, detox @ 8%

– General health maintenance @ 6%

– Look at category examples : Krill Oil & Melatonin/ 5 HTP

Category Campaigns

IMS Shares : Pharmacy sales

• 98 % category growth (MAT) due to huge investment and triple digit growth from

- Viral Guard ; Bio-Strath ; Procydin

• Procydin moves to No 1 : Procydin doubled it’s media spend from R5M in 2011 to R10M in 2012.

• Category responds well to advertising / TOMA

• Incredibly cluttered vitamins and supplements market segment : Over 230 Brands! Have to standout

Brand Month Value Month ShareMonth Growth YTD Value YTD Share YTD Growth MAT Value MAT Share MAT Growth Position

Total 24 325 925 100.00% 71.01% 73 048 028 100.00% 83.26% 277 764 160 100.00% 97.70%

VIRAL GUARD 5 617 534 23.09% 1 200.07% 15 729 530 22.03% 1 062% 51 184 528 18.43% 220.63% 1

VIRALCHOICE 1 611 433 6.62% 67.25% 6 929 022 14.47% 24.07% 34 194 789 12.31% -5.37% 2

BIO-STRATH 1 153 007 4.74% -0.13% 2 729 669 3.62% -15.26% 12 773 541 4.60% 223.82% 3

MODUCARE 1 185 526 4.73% 20.38% 2 743 329 3.47% -2.85% 10 180 545 3.60% -13.25% 4

OMEGA 3 & 6 945 312 3.89% 39.01% 4 498 288 5.92% 98.85% 17 365 607 6.25% 182.24% 5

UNIQ OMEGA 3 6 9 857 541 3.53% 864.19% 1 700 289 2.16% 1 300% 5 549 759 2.00% 2 315% 6

IMMUNOVA 659 703 2.71% 245.20% 2 126 693 2.51% 1 012% 6 260 824 2.25% 3 176% 7

KRILL OIL NEP OMEGA 3 658 245 2.71% -23.50% 2 182 215 2.64% 43.56% 8 640 660 3.11% 195.76% 8

AIRMUNE 517 666 2.13% -23.65% 1 818 287 3.22% -33.48% 9 790 560 3.52% 3.74% 9

Brand Month Value Month Growth YTD Value YTD Growth MAT Value MAT Growth

PROCYDIN 7 588 948 197.46% 17 529 525 136.32% 51 398 228 98.31%

Immune Health boosters

Immune Booster Spend

Relatively high levels of spending from Procydin (R10 mil) focused on ATL.

There is clearly a consumer response to advertising in terms of sales growth

Source: 2012 Nielsen Adex

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2011-07 2011-08 2011-09 2011-10 2011-11 2011-12 2012-01 2012-02 2012-03 2012-04 2012-05 2012-06

MARCUS ROHRER SPIRULINA

PROCYDIN

PLUS +

• Education around use of immune booster supplements

• Competitive Noise in Media

• Heavy investment ATL in a segment driven by ambitious

brands looking for growth

MINUS -

• Expensive segment that consumers are looking for

information as to WHAT works effectively

(out of pocket expenses - limits usage)

• Healthy levels of investment are directly related to

volume and value growth

• Clear strategies and strong campaigns have rewarded

competitors with good loyalty, trial and brand awareness.


• Education is improving and consumers becoming more

empowered at POP

• Market is receptive to new products at good prices that

are supported with ‘reason to believe’

• This supplements segment is NOT molecule-driven but

‘Claim driven’ to deliver on promises.


• We need to be able to invest positively

(disproportionately) and the effect on brand sales growth

will be easy to see in year 1

• Map out a support plan that drives education and

supports claims in order to secure an increase in sales


What has driven or limited growth for the Category?

Analysis & Conclusions

CHARACTERThe sleep expert.

Rest assured, for a calming night’s sleep

ESSENCE

A soothing, guilt-freesleeping solution

EMOTIONAL BENEFIT-Rest / Escapism-Peace of mind

-Stability

INSIGHTS-Easy Accessibility / OTC

- Stigma attached to prescription meds-Acceptable in society

WHOOver-worked, stressed out and work-a-holics who can’t switch off /sleep

for fear of worrying about their issues

RATIONAL BENEFIT-Natural - Proven track record- No dependency / side affects

Wake up feeling fresh without any drowsiness

Melatonin / 5HTP - Opportunity

Brand Architecture

IMS Shares : OTC Sleep Aids

Brand Corporation YTD Value YTD Growth MAT Value MAT Growth Share

Market 9 306 607 7.67% 35 846 391 8.67%

SOMNIL ASPEN 5 532 494 8.66% 21 111 781 10.90% 59

5-HTP SOLAL 1 618 797 15.88% 6 850 624 132.94% 19

BETASLEEP ADCOCK INGRAM 1 641 995 14.71% 5 592 909 11.35% 16

SLEEP-EZE P.M. ASPEN 474 749 -4.87% 2 081 892 2.43% 6

NEUREXAN HEEL HEEL 29 912 72.88% 134 025 402.30% 0

MELATONE LAB 2 563 -94.39% 38 451 -15.82% 0

NYTOL ASPEN / GSK 6 097 24.07% 36 709 65.24% 0

• The category is showing 8,7% growth on MAT and also YTD (End of year ‘sleep aid season’).

• Competitors : Betasleep ; 5-HTP ; Somnil showing good growth.

• Melatonin should be Read in this category – opportunity to gain market share (even as Sch 2).

• Constant advertising and in-store reminders (shelf strips behind the counter) are required to ensure that

you get space and competitors do not steal share.

Brand Elements

• Wobblers• Dummy boxes• Pens• Shelf Strips• Dosage Cards

• Magazine

Advertising :

3 inserts over 6

months

Plan to win

New cleaner packaging

Detail Aids - HCP

In store Materials

Shelf talkers for behind the counter

HCP Magazines

Awareness, Expert

Web

Presence

Market Planning

Segmenting the market - understand gaps in consumer shopping behaviour

Profiling of our main target market, and focus our media spend

Take cognisance of attracting upmarket BCI market (LSM 7 – 10)

Target perceptions on expenditure habits : appeal to emotions – “give your

body the best”

Look for communication contact points - what do consumers respond to ?

Partner with media agency for innovative & effective media touch point

plans

Media Planning

Ascertain the Ideal Mix of media spend : which

mediums to get maximum return on

investment

% Reach - Audience Rating /

Ave. reach

% Penetration – Portion of your target market

% Frequency – How many times your Tgt. Mkt. see your advert

Burst of Advertising with longer breaks to establish personality, or Drip strategy for constant reminding and call to action

Resources

Appoint advertising agency to create ‘the Big Idea’ – create an emotional campaign that reinforces the SOLAL Brand positioning and builds a personality that consumers identify with : Engage and inspire Consumers to Take action

Manage Media planning support to ensure integration of campaign idea through to execution of various media to convey the message and carry through to in-store activity for integration and alignment

Build on the effectiveness of advertising spend – ATL : BTL (60 : 40 benchmark) Grow % Share of voice (SOV) to Share of Market (SOM) – info from media stats

Learnings from other Consumer brands to create disruption in store - Interest

Creation of cross functional teams for ideas and execution effectiveness

Cross merchandising

Counter top Dispenser Unit –Permanent Stand : change products re each condition / promotion slot

Executional Plan

• Develop a “through the line” campaign to drive product range usage:

– Build brand awareness to consumers and retail channels through media exposure

– Influence choice through education of retail management, pharmacy assistants, sales force, consumers and Doctors

– Create a “call to Action” at point of purchase through reminders and convenience to purchase

– Re-enforcement of brand and range benefits at store level with retail staff and consumers.

• Motivate and stimulate purchases through education and advertising, targeting consumers and incentivising brand involvement through healthy lifestyle encouragement

Brand Activation & Media plan

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Magazine

Radio

Sponsor-

ship

In-store

POS

Retail co-

op drive

TV Idea Prod Flight Flight Flight Flight

New

Product

launches

Brand Activity

• Full 360 support during Q1 (July – Sept 2014)

• Creative executions:

– Web: Create an Seasonal Page on website for consumers : What products are right for that season eg, Winter, Summer focus

– Print: New print ads for journals and consumer magazines

– Healthcare Professionals: Detail aids - change design each Q

– Digital Media within the Healthcare Practitioners environment especially in pharmacy

– Media (liaise with Media agency regarding flow plan)

– Budget and phasing by month into quarter plans

– Burst strategy to start and then drip strategy to keep reminders

– Supply material to media houses for advertising as per flow plan.

Mag Print

Exprocure

screens

Detail AidJournals

In-store focus

360 degree brand support

Win

Brand Activity Plans

Creative executions: – Create a SOLAL Brand personality and carry that through into all

mediums and in-stores

• Outdoor: Create outdoor content to target LSM 7-10 consumers, target the up-market residential areas (malls where there is a Dischem)

• TV Advertising (big impact) or Develop new Sponsorship Opportunities –Utilise High LSM media – Dstv, National geographic, BBC

• Digital: Develop digital campaigns to educate consumers

• Radio: Develop new radio adverts for ‘Need’ conditions

• Print: Adverts aimed directly at core market with relevant print media

• Healthcare Professionals: Develop detailing material / Educate pharmacy assistants

– SOLAL protects you from the effects of harmful aging….because Love doesn’t plan ahead (emotion)

Name……Tel/Cell number…...

Last 4 digits……………….

Mall Digital

Advertising

Mall Washroom

AdvertisingPharmacy Drive

Vitamins and Supplements

Brand Activity Plans

– Sponsorship opportunity for female content programming or new TV ad

– Digital: Develop campaign targeted at females (utilise facebook).

– Print: High Impact adverts for magazines targeted at females ; back with separate Advertorial to Educate

– In-store campaign (pharmacy POS, posters, dummy boxes, be seen)

– Merchandising : Communicate the New packs – highlighting the ‘Qualisafe’ endorsement and ‘ease’ of Alphabetical categorisation

– Print: Develop adverts for insertion in relevant medical and pharmaceutical journals throughout the year – boost support

– Healthcare Professionals: Develop detailing material aids for reps to discuss SOLAL with doctors and pharmacists – conversion ratio

IN-Store

FSU

Hanging Mobile Wobblers

Shelf Strips

Pharmacy POS Solution

Product specificStacking boxes

SHELF DEFENDERS

CONSUMER COMPETITION HEADER

Next Steps

Getting our agency partners on board -

Brief for Media Plans and

Advertising campaigns / big idea

Sponsorship ideas

In-store brand activation

O u r b r i e f i s t o c r e a t e a n a p p l i c a b l e

c o m m u n i c a t i o n s i d e a t h a t e m b o d i e s t h e d y n a m i c

a t t i t u d e o f t h e b r a n d , a n d g i v e s a c l e a r r o l e f o r a

q u a l i t y B r a n d t h a t e n c o m p a s s e s a l l p r o d u c t s t h a t

d e l i v e r t h e f u n c t i o n a l p r o m i s e o f ‘ g i v i n g y o u r

b o d y t h e b e s t ’ :

“ w i t h S O L AL y o u c a n c h o o s e t h e h e a l t h y a g i n g

s o l u t i o n f o r y o u r n e e d s , w i t h c o n f i d e n c e ”

Communications Strategy

C o m m u n i c a t i o n s p r i n c i p l e s t h a t w e h a v e t o b e a r i n

m i n d a r e :

I n v o l v e m e n t

W e n e e d t h e c o n s u m e r t o i d e n t i f y w i t h a n d b e l i e v e

i n t h e c o m m u n i c a t i o n

S i n g l e m i n d e d

t h e c o m m u n i c a t i o n n e e d s t o b e c l e a r a n d f o c u s e d

o n t h e S O L AL b r a n d v a l u e s

To n e

t h e c o m m u n i c a t i o n n e e d s t o r e f l e c t t h e b r a n d ’s

a s p i r a t i o n a l p e r s o n a l i t y

B r a n d i n g

t h e b r a n d n e e d s t o p l a y a n i n t r i n s i c r o l e i n w h a t

h a p p e n s . I t m u s t e x i s t w i t h i n a n d b e r e l e v a n t t o

“ a g i n g w i t h c o n f i d e n c e ” ( l i f e s t y l e )


T h i s w i l l l e d t o a s i m p l e , b u t v e r y s t r a i g h t

f o r w a r d s t r a t e g i c c r e a t i v e b r i e f t o t h e a g e n c y

O u r o b j e c t i v e :

W e w a n t t o l e a v e n o d o u b t i n t h e c o n s u m e r ’s

m i n d s t h a t S O L AL i s b e t t e r a n d w i l l m a k e a

d i f f e r e n c e t o y o u a g i n g h e a l t h i l y ( l e s s w o r r y )


T h e B r a n d a r c h i t e c t u r e o f t h e b r a n d n e e d s t o

c o n t a i n 3 k e y e l e m e n t s r e c o g n i s e d a s b e i n g

i n t e g r a l t o t h e c o m m u n i c a t i o n

O n l y t h e b e s t Brand Personality

Tr u s t Discriminator

C o n f i d e n c e Rooted in R&D of

Vitamins / supplements

Key Success Factors

Offers the best products that are effective,

and will give your . body the

best chance of aging healthily

Top quality . products, with researched formulations that offer supportand peace of mind

Different, Empathy, . effective solutions, . innovative,

The brand you canTrust, caring

4. InsightIts important to maintain my health as I age and respond to changing body and health conditions

3. Target MarketFocused on Consumers who are wanting to maintain their health as they age, skewed towards Females, 35 - 60+ who need to look after their aging family needs without worry

2. Competitive Environment

Highly competitive market,Where consumers find too many choices and need education on the right solution for their needs

Effective healthyaging solutions :proved formulations,

research, support claims

9. EssenceHealthy Aging ; Improving and

Prolong the quality of Your Life

1. Root StrengthsBetter quality extracts, prop. formulations and ingredients : solid

claims

Develop SOLAL

Core Brand Key

THE ESSENCE

THE CREATIVE PLATFORM

CREATIVE/

CAMPAIGN IDEAS

BRANDING

THE CONFIDENCE OF A HEALTHY BODY

Supplement with confidence

Healthy aging specialists

LOGO

Consistent visual ‘look & feel’

THE BRAND IDEA

TV ? PRINT

ACTIVATION

Healthy aging solutions

RADIO ACTIVATION

INSTORE ACTIVATION

Communications Idea

W h a t w i l l g e t t h e c o n s u m e r t o s w i t c h h e r l o y a l t y

f r o m r e g u l a r v i t a m i n s a n d s u p p l e m e n t s t o

C h o o s e S O L AL a n d p a y a p r e m i u m p r i c e ?

G e n e r a t e a n e m o t i o n a l “ H e a l t h y c o n s c i e n c e ”

a w a r e n e s s o f S O L AL q u a l i t y

G i v e a m o t i v a t i n g r e a s o n t o s w i t c h – Tr u s t

G e n e r a t e t r i a l

E n c o u r a g e l o y a l t y - c o n f i d e n c e

The Brand Journey

W h a t w i l l g e t h e r t o s w i t c h t o S O L AL ?

C r e d i b l e s u p e r i o r e f f i c a c y – I t w o r k s , “ I c a n f e e l t h e

d i f f e r e n c e ” ( p r o o f o f s u p e r i o r q u a l i t y )

T h e r a n g e i s b r o a d , d e e p a n d h a s a s o l u t i o n t o a l l

a g i n g c o n d i t i o n s ( s h e c a n f i n d w h a t s h e w a n t s )

S O L AL i s a b r a n d s h e i d e n t i f i e s w i t h ( i t ’s f o r m e )

( t o n e a n d s t y l e n e e d s t o b e d i f f e r e n t i a t e d &

a p p e a l i n g )

S h e r e m e m b e r s S O L AL a n d c a n f i n d h e r s o l u t i o n s

w h e r e v e r s h e s h o p s / p o i n t o f p u r c h a s e

( c o m p l e x c a t e g o r y w i t h l o y a l p u r c h a s e h a b i t s o

r e c a l l , g u i d a n c e a n d e d u c a t i o n a t s t o r e )

S h e n e e d s t o p u r c h a s e S O L AL e v e r y m o n t h , a n d

a g a i n a n d a g a i n ( s h i f t l o y a l t y t h r o u g h c o n t i n u o u s

h a b i t ) r e m i n d e r s & r e w a r d s

The Brand Journey

AWA R E N E S S

AT T E N T I O N

I N T E R E S T

THE CONSUMER’S JOURNEY

C O N S I D E R AT I O N

C O N N E C T I O N

C O N V E R S I O N

L O YALT Y

I N S I S T E N C E

E VAN G E L I S M

P R I N T

( T V C )

AC T I VAT I O N

R AD I O

P O S

P R O M O

C AL L T O

AC T I O N

R AD I O

S P O N S O R S H I P

D I G I TAL

Different channels playing different roles across the journey

E v e r y c a m p a i g n i d e a m u s t b e p r e s e n t e d w i t h a n

a s s o c i a t e d c o n s u m e r e n g a g e m e n t /

c o m m u n i c a t i o n s p l a n

W e d o n o t a t t e m p t t o j u s t d r a m a t i s e t h e

c a m p a i g n t h r o u g h t h e u s e o f T V ? ( 2 0 1 5 )

W e n e e d t o e n s u r e t h a t w e d e m o n s t r a t e h o w w e

b r i n g t h e b r a n d / i d e a t o l i f e t h r o u g h a l l

c o n s u m e r t o u c h p o i n t s a n d t h e w a y i n w h i c h w e

t a l k t o t h e c o n s u m e r

Strategic Imperatives

D i s c i p l i n e

A CLEAR ROLE FOR EACH

DISCIPLINE

R o l e

1 . A d v e r t i s i n g

T V / P r i n t

I n s p i r a t i o n t o

p u r c h a s e

2 . P O SP r o m p t t o

p u r c h a s e

3 . A c t i v a t i o n

a n d p r o m o s

I n c e n t i v e t o

p u r c h a s e

To d r i v e p e n e t r a t i o n w e n e e d t o m o v e f r o m j u s t

t a l k i n g t o o u r c o n s u m e r t o e n g a g i n g w i t h t h e m

a r o u n d t h e e l e m e n t s o f t h e i d e a

ENGAGEMENT STRATEGY

B r a n d L i n k a g e

A l w a y s o w n ‘ h e a l t h y a g i n g ’ p o s i t i o n i n g s t r o n g l y

C o n f i d e n c e r e ‘ s u p e r i o r i t y ’

A l l e l e m e n t s n e e d t o c o n v e y s u r e n e s s o f q u a l i t y a n d

t r u s t ( b u t N o t u n t o u c h a b l e o r e l i t i s t / N o t a l i e n a t i o n )

R e l e v a n c e o f b r a n d

D e m o n s t r a t e r e l e v a n c e i n a “ r e a l ” b u t a s p i r a t i o n a l w a y

C a n b e t h r o u g h i n s i g h t s

E m o t i o n a l c o n n e c t i o n

A l t h o u g h c o m m u n i c a t i o n h a s a s t r o n g f u n c t i o n a l

m e s s a g e , i t n e e d s t o b e d o n e i n a w a y t h a t e s t a b l i s h e s

a n e m o t i o n a l c o n n e c t i o n w i t h c o n s u m e r s

t h e b r a n d p e r s o n a l i t y n e e d s t o b e e s t a b l i s h e d a n d t h e n

r e i n f o r c e d

Creat ive considerat ions


M u l t i f a c e t e d E n a b l e s t h e d e l i v e r y o f a p r o d u c t

m e s s a g e w i t h i n a p o t e n t i a l

e m o t i o n a l c o n t e x t w i t h r e l a t i v e

f r e q u e n c y

P r o v o k e s a A n a t u r a l c l o s e r e l a t i o n s h i p w i t h

g r e a t e r c o n s u m e r s

e f f e c t o f t h e B C I B r i n g s t h e b r a n d t o l i f e

D r i v e s a S o n i c E s t a b l i s h e s a s o u n d f o r S O L AL -

B r a n d Tr i g g e r d e v e l o p s a p e r s o n a l i t y

The Role of Radio

C o n c e p t : R a d i o P a r t n e r s h i p s ( R e g i o n a l l y )

• S p o n s o r e d r a d i o s e g m e n t t o w o m e n o n

h e a l t h y a g i n g

• E x p e r t a d v i c e

• A d r i v e r t o m a g a z i n e p r o m o t i o n

• I n t e r v i e w s w i t h H C P o n a i r

• O n A i r p r o m o t i o n s

• P h o n e - s t o r i e s

• P h o n e - i n e x p e r i e n c e s

• D a i l y p r o d u c t g i v e a w a y s a r o u n d

p h o n e - i n s

• R a d i o c o m m e r c i a l s

………….The Role of Radio

A n n o u n c e m e n t : N e w P r o d u c t / C a t e g o r y E d u c a t i o n

H e r o o f t h e p r o d u c t : P r o v i d e s t h e o p p o r t u n i t y t o g i v e t h e

c o n s u m e r m o r e d e t a i l o n s p e c i f i c

p r o d u c t

S p e c i f i c P r o d u c t L e n d s a d d i t i o n a l s u p p o r t t o o t h e r

D i f f e r e n t i a t i o n : e l e m e n t s

C o n c e p t : M a g a z i n e A c t i v a t i o n

• T i e i n w i t h U p m a r k e t f e m a l e m a g a z i n e

• S t i t c h e d - i n / p u l l - o u t , H e a l t h y

s u p p l e m e n t

• B o r r o w c r e d e n t i a l s o f t h e m a g a z i n e

• S o m e o n e w h o k n o w s a b o u t

c r e d e n t i a l s o f H e a l t h

• H e a l t h G u i d e - B u m p e r E d i t i o n :

S u m m e r H e a l t h y l i v i n g

The Role of Print / magazine

Structure to follow Strategy

Essence

- Healthy Aging /

- Improving Life

Proposition

- Solal is the only brand that

can satisfy women and their

families need for healthy aging,

because we are healthy aging

specialists Substantiators

Benefits

Values

Personality

Consumer

Insight

Key Consumer Take Out

- Solal Keeps Me Healthy as I

age, so that I worry less

The Brand BullsEye

- Passionate

-People:

-Healthy aging specialists

- Radiant

- First to

Market

- Different

- Simplify

-Products:

-Propriety

formulations

- Price:

-Premium

-Processes:

- Quality control

- Research

- Information supply

- Licaps technology

- Information sharing

- Propriety product development

process (e.g. 10 step peace of

mind stability programme)

- Product:

Effective Healthy

aging

- Service :

POP self diagnostic

script system to

simplify decision

making

- Emotional:

Liberated

- Image:

World leaders

- Convenience:

Understandable,

visible (pack and

shelf), selective

distribution, easy to

consume

-Most Effective

in Class Solutions

- Empathise

The ravages of

aging: Unhealthy

aging

Aging is a fact of

life. From the

moment you are

born you produce

toxins that will

ultimately kill you.

It will effect your

immune system,

skin, heart, brain,

etc. Disempowered.

You can do

something about it

or you can take

substances called

nutraceuticals to

slow down the

process. Relying

on intervention with

medicines and

surgery after it is

too late. The

interventions they

use is related to

one or two

symptoms only, not

reversing the

problem.

Prevention is better

that cure. You no

longer get all the

vitamins and

minerals you need

in your food.

Lifestyle prevents

us from eating

healthy. The

uncontrollable

modern lifestyle

environment

(stress, pollution,

food additives,

plastic bottles, etc.)

– causes of aging

- Free

- Progressive

- Courageous

- Caring

EXECUTIVE SUMMARY

2014 / 2015 Strategic Marketing Plan

Consumer Value proposition

FUNCTIONAL :

– Healthy aging specialist ( world leaders and experts )

– Proprietary Formulations

– ‘Only the Best’ quality products

– Specific product leadership compositions for specific aging conditions

– Believable claims that can be substantiated and get support from Health care professionals

– The Emotional CVP needs to be developed utilising the product leadership equity, and building the SOLAL Umbrella branding around the positioning of ‘healthy aging specialists’

Differentiators

– Niche brand positioning – Healthy aging

– Unique product formulations that offer a total solution

– Product Efficacy : Consumer evidence that it works !

– Preferred relationship with Dischem

EMOTIONAL RELATIONSHIP BUILDERS :

– Build a corporate brand personality : create a consumer ‘hook’

– Establish a tone and SOLAL identity that connects with consumers

– Leverage the 6 focused “aging conditions” to meet consumer needs

– Continue to be First to market with Innovation (competitive edge)

– Build evidence for “prescribed by doctors and recommended by pharmacists”

Key Drivers – Priority Building Blocks

Short Term (6 months):– Relaunch packaging, simplify message and communicate convenience– Develop improved in store merchandising ‘stand-out’– Develop a 2014 Dischem execution plan to improve disruption touch points

that ‘attract’ new users, with agreed growth targets– Simplify magazine advertising message – less clutter and more single-

minded relating to specific ‘needs /conditions’– Utilise radio to create better synergy within the advertising strategy – need

to build ‘the right’ audio tone for the brand

2014:– January : Brief 3 Boutique Advertising agencies that can become partners in

developing the communications strategic direction and ‘big idea’– January : Meet with Media agencies to invest in a strategic planning partner

for execution ideas and innovation– Allocate appropriate budget to ensure brand growth within a highly

competitive market : dominate share of voice ; cut through media clutter

FY15 Marketing Strat SOLAL final

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