Corporate Overview Continental Biscuits Limited (CBL) was founded in 1984 following a Joint Venture between the family of Hasan Ali Khan and the Group Danone, the French food giants. In the year 2007 Danone sold their biscuits category to Kraft Foods of USA. Today the company has a joint venture with Kraft Foods with a shareholding of 50.5% and 49.5% respectively. For more than two decades CBL is engaged in the manufacturing and marketing of the brand LU. We have an array of products which are pre-eminent in the branded biscuit business both in Pakistan and abroad. Our unrivalled portfolio of brands has been meeting consumer needs for well over two decades and includes such favourites as TUC, Candi, Prince and Tiger. We produce some of the best known crackers, cream variants, plain and ingredient- based biscuits. Our manufacturing location based in Sukkur is a centre of excellence which provides employment to 1400 people in the region. Our
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Corporate Overview
Continental Biscuits Limited (CBL) was founded in 1984 following a
Joint Venture between the family of Hasan Ali Khan and the Group
Danone, the French food giants. In the year 2007 Danone sold their
biscuits category to Kraft Foods of USA. Today the company has a
joint venture with Kraft Foods with a shareholding of 50.5% and
49.5% respectively.
For more than two decades CBL is engaged in the manufacturing and
marketing of the brand LU. We have an array of products which are
pre-eminent in the branded biscuit business both in Pakistan and
abroad. Our unrivalled portfolio of brands has been meeting
consumer needs for well over two decades and includes such
favourites as TUC, Candi, Prince and Tiger. We produce some of the
best known crackers, cream variants, plain and ingredient-based
biscuits. Our manufacturing location based in Sukkur is a centre of
excellence which provides employment to 1400 people in the region.
Our marketing, sales, finance, commercial, IT and the human
resources functions are located in the head office in Karachi
employing a total of 170 employees. As a part of the leading FMCG
our head office has close links both with the Regional Offices of Kraft
in UAE and our manufacturing plant in Sukkur.
Prince
Adventure, excitement and the magical world of a child’s imagination;
that’s what our premium cream brand Prince is all about. The
country’s largest chocolate cream biscuit, Prince rules the hearts of
children all over with its yummy, energy-filled chocolate sandwich
biscuits.
Generously filled with rich chocolate cream sandwiched between
crispy and delicious biscuit shells, every bite of Prince gives you the
fulfilling taste of creamy smooth chocolate and fresh biscuits. The
brand has now become synonymous with chocolate cream owing to
rich flavor that remains unmatched by any competitor.
More than just the delicious biscuits, Kids relate to the Prince
character as a dynamic and electrifying savior thereby enhancing the
brand’s appeal among an age group that’s always looking for mentors
and role models
Packaging
FAMILY PACK
The pack is priced at Rs25
SNACK PACK
The pack is priced at Rs12
TICKY PACK
The pack is priced at Rs4
Prince Chocolate
• Prince has strong equity in Chocolate
• Prince Chocolate is perceived to have a very high level of
product quality (ATP-27% score only second to sooper for kids
dipstick)
• The chocolate cream along with the high product quality is main
discriminator (ATP high scores on uniqueness-30% and great
taste-31)
• It is the market leader in chocolate cream biscuits
• The brand was experiencing eroding equity in 2006 due to lack
of innovation; product, packaging & communication (equity
research Mar-May 2006)
• Teenage & tweenagers girls start feeling that the biscuit is too
large and heavy (equity research Mar-May 2006)
• Consumption in teenage boys decreases as Prince chocolate is
perceived as a children’s biscuit (equity research Mar-May
2006)
RIO (equity research Mar-May 2006)
• Consumer feedback shows that RIO is nearing maturity stage
in its life cycle and a new brand will become market leader
within 5 years of launch
• Biscuit shell of RIO is preferred due to its crispy taste
Sales
• RIO sales spread nationwide with concentration spread over
more major towns and regions as compared to Prince
which is urban centric
• RIO major sales contribution from Punjab flavored cream belt
Vs Prince major contribution from top 3 urban towns
General
Children in urban centres (source : CN children research 2006);
a) Constitute 43% of urban population aged 0-14
b) 92% have color TV sets
c) 73% have cable TV
d) 63% have computers
e) 84% share bedrooms
f) 43% have computers and 17% have used internet
g) List watch TV, reading books and playing as most
common and/or favorite past-time
h) List cartoons as favorite program watched followed by
dramas
i) Top 3 reasons for liking TVCs; makes me laugh, has nice
music and/or has cartoon character
Snacks Industry
• Children have biscuit, chips, soft drinks, ice cream, toffees,
chocolates, juices and chewing gums in their snacking basket
of goods
• Chips consumption is the second biscuits consumption and has
higher household penetration
• Children consume biscuits, soft drinks and chips every day
• Children want a ‘fun’ snack which is good tasting
• Mothers want a snack filled with ‘nutrition’ to give their children
energy during the day
• Sooper does not feel heavy and a full family pack can be
consumed in one sitting
Consumption and Spending (source : CN children research 2009)
• Average daily pocket money for children in urban centres has
increased to from Rs25 to Rs50
• With increase media spending in snacks category on
chocolate bars, chips, ice creams and toffees there is tough
competition for a child’s share of pocket
• Children consume snacks; specifically biscuits and chips, at
home in the evening and at school during break
• Children are innovation seeking and want regular innovation
in all snacks.
Key BrandsCBL EBM Kolson Akbar FoodsPrince Rio Jam Hearts Flory
Sandwiches Cream Hearts
Cream Category – Brand Share
Cream Category – By Flavor
Prince Others, 7.0%
Prince Chocolate,
18.2%
Rio, 38.7%
Others, 27.1%
Flory, 3.4%
Cream Hearts, 1.2%
Jam Hearts, 4.3%
Strawberry Vanilla48%
Chocolate25%
Others10%
Lemon1%
Lemon Orange2%
Chocolate Vanilla8%
Vanilla6%
Profile of main competitors
Brand Seed
Competitive SetKid’s biscuits & snacks
Target MarketKids 6-12 yrsWho are active, like
snacking and whose mothers want them to eat healthy
Brand Personality & Values
Active/Imaginative/Energetic/ Constructive
Fun/Fantasy
Discriminator Mascot The only cream sandwich biscuit that provides energy
Brand OwnablesColour: Vibrant coloursFont : Prince logo type and
vibrant chocolate fontBiscuit shot
Consumer Insights
“I want snacks that are yummy, fun and my mom says I also
need things that help me be healthy
& strong”
Emotional BenefitsIndulgence & Fun
Reason to believe
Fortified with Iron & Vitamins The taste kids prefer (creamy
filling)
Functional Benefit“Tasteful snacks that provide
energy & nutrition”
‘Energy to have fun’
Brand History
1980s Prince launched as one of 3 launch brands by newly formed
CBL-Danone affiliation Prince was first chocolate cream sandwich biscuit
1990s Prince launched other cream flavours to maintain leadership
position in cream segment RIO launched by EBM to counter Prince in cream segment but
was unsuccessful in doing significant damage Prince starts to close other cream flavors due to small market
sizes and low promotional budgets on the same 2000-2004
RIO launches sub brand RIO Double Treat which is and immediate success due to double cream in fruit flavors. Both considered good innovations by the innovation seeking target market –children
Due to high quality product range with expensive ingredients Prince profitability comes under pressure
2005- Year of resurrection
Relaunch & Invest Relaunched Prince Chocolate on energy to have fun platform New and vibrant packaging New TVC Results : New communication, TVC and packaging was a hit
with consumers Rationalize & Consolidate Portfolio
Migration of Double Milk from MilcoLU to Prince Launched Lemon as a new variant for niche market Discontinued other variants (2in1, Coconut, banana, pineapple
etc) Extend Franchise & Target group
Launched Dark Forest for Teens Results : Not a successful launch
2005 Results
Migration of Milco LU did not work as desired Prince lemon a small volume brand did manage to gain
acceptance by target market but due to the expensive recipe was not profitable
2006- A new year – a new beginning
Twin Fun Launch
Launched Twin Fun as Prince sub brand to counter fruit flavor double cream market of RIO DT in Jan 2006.
Strawberry-Vanilla & Lemon-Orange launched School activation, mega BTL drives across Punjab towns
in phase 1 and metro towns in phase 2 Captured 25% category share in fruit flavoured double
cream market Issues
Packaging a success but product issues developed with Rs 1.8 MN product write off at end of year 1
Relaunch In August 2006 Tactical TVC supplemented with School OGA had good
results but not successful Results : Launch not successful due to
Product issues Low Marketing spend Existence of market leader with first mover advantage No clear USP
Diminishing brand loyalty Research
Users saw the brand as stagnant Brand was becoming antiquated
2007- Year of Rejuvenation
Re-launch Prince brand Packaging
More vibrant colors Better product and cream shots
TVC Modernized character Created contemporary theme Made Kid hero and Prince a facilitator
Consumer interaction Activated brand across the year in 12 towns through
school activities Activated brand in off-season through media linked
Prince Summer camp Maintained consumer involvement in Ramadan through
Prince Eidi Time CP Results : Prince chocolate grew YTD May by 47%
Maintain Product profitability Price increase
Took first ever price increase in industry in over 8 years on Chocolate Ticky pack in May ’07
Industry price increase on most brands in July’07 Results :
Brand saw a dip of over 60% volumes in Q3
Branding
The CBL organize summer camp for children’s which is called Prince Summer Camp that create a positive brand image of Prince in the mind of the their target market (Children’s)