Launch of the sugar brand Souki by GMD

- Or how an old-fashioned mono-product industry became a Fast-Moving Consumer

Goods leading Company -

Launch of the sugar brand

by GMDSOUKI®

…highlighted by a strong Brand• 100% pure crystallized cane sugar (powdered and lump sugar)

• PRODUCED by Compagnie Sucrière Sénégalaise (CSS – Groupe Mimran).• PURCHASED by Grands Moulins de Dakar (GMD – Groupe Mimran) . • In unbranded 50 kilos bags.• RECONDITIONED in 250g, 1kg and 5kg packs. • Under the Souki® brand, owned by GMD.• AVAILABLE for the end-user. • In neighborhood shops, supermarkets and local markets.• At a PRICE slightly exceeding the unbranded CSS sugar present in bulk in the same

distribution circuit.

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SOUKI® : a simple product…

+50FCFA

The product : from a local bulk sugar to a local strong brand

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CSS BULK SUGAR 250g

150 FCFA

GMD SOUKI® SUGAR 250g

200FCFA

CSS BULK SUGAR 50kg

28 500 FCFA

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Packaging suitable for all needs

BAGS OF POWDERED SUGAR 250g 1kg 5kg200FCFA 800FCFA 4000FCFA

BOX OF LUMP SUGAR1kg

800FCFA

Analyze-Think-Create-Develop-Manage :

• Non-existence of a CSS sugar brand• Lack of positive reputation, weak quality perception against CSS by consumers• Continue on the road of transformation of our activity• From a product-oriented industry (core business : mono-product production of wheat flour and animal

feed primarily sold to distributors - B2B)

• To a customer-oriented company

• By offering to end-users a FMCG basket (B2C)• Capitalize on the confidence expressed by consumers towards the brand “GMD”

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or why a wheat flour industry would create and sell a sugar brand ? (1/2)

THE RATIONALE

• Work on the confidence won by the implementation of a institutional campaign that has settled our Brand and our corporate values

• I.e. Know-how, Proximity and Innovation• To progressively erase in the mind of the consumer the idea

of GMD as only a wheat flour industry.• And offer a variety of FMCG adapted to consumers’ needs

(households wheat flour “Fati®” & “Fati Booli®”, “Gaya®” rice, “Souki®” sugar, edible oil, powdered milk…)

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Drafting of a strategic noteSteering committee (Think-Tank : market intelligence &

commercial information)External market research on offer, demand, consumers’

needs, usages and habitudes, competition, distribution, legal frame

Synthesis and committee decision-makingCompliance with legal requirements: submission to the

authority for agreement to sell (AMM)7

What way have we taken : The key steps of the launch (1/2)

Cost price study and evaluation of projected sales in volumes & valuesPresentation to the CEO (final decision and go!) Limited (final test phase) & mass productionDevelopment of an advertising campaignAdvertising campaign Pre-test Ensure the availability of the stock on the market!!! Launch of the advertising campaignTrade marketing and local household’s animationEvaluation of the ROI

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Working together: collaboration with stakeholders in the company

GM: thinking on the opportunity and main issues Industrial : lead times and costs of the industrial investmentH.R.: technical and commercial human investment Commercial: Test phases in distribution and with end-users | selling of the

productPurchasing: procurement of raw material, primary and secondary packagingManagement accountant : costs controlSupply chain: distributionSteering Committee: economic, organizational and technical feasibility

analysis

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Gathering a “dream team” : the advertising & trade marketing teams & budgets

• BDA Market Research Institute: consumers surveys, pretests of naming, packaging and advertising campaign

• Atoo M&C. Ag. : naming and packaging design (Souki® Standard)• Caractère M&C. Ag. : packaging design (Souki® Premium)• DakCor M&C. Ag. : development & production of the A.T.L. advertising campaign

(Quality, Health, Safety, Affordability, Practicality: a short, confident and clear message to end-users)

• Minerve M&C. Ag. : media buying (3 months)• People No Limit : leading of the B.T.L. trade marketing & households animations

campaign (3 months)

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We made it !product & Brand performance after the launch

• Immediate ownership of the product• Strong brand recognition • Through an extensive advertising campaign• But also many field activities with end-users and retailers• While ensuring a continuous availability of the product on the

market• Which led to a very good performance of the product since its

launch, corresponding to our expectations…

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So, finally, everything went well ?

• Souki® brand quickly penetrated the market and was replacing progressively bulk sugar usually sold by retailers

• The demand was present, even if in some areas the purchasing power of some end-users was too low to accept our selling price

• GMD reputation as an innovative company, always listening to its customers grew up

• But… something went wrong, something completely unexpected happened…

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What went wrong ? and how did we manage it…

• Government decision to lower the price of sugar • By decreasing the Value Added Tax only on sugar sold in 50kg bags and

repackaged in bulk…• Results : Difference of more than 50% between the price of bulk sugar

and the price of Souki®, making its sales price unacceptable for the consumer

• Solution : price sacrifice, by even losing money, during 6 months, to let our brand enter and remain in the market, and pushing the consumer to see it, claim it, buy it, use it and ask it again to resellers.

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