Elite Romania

New Business DevelopmentSamoila Lavinia

Concept Marketing&Sales

knowledge, dissemination & embodyment

New Business development

• Launch of Elite biscuits

• Launch of Elite extruded snacks (bamba)

• Launch of Premium nuts

1. Biscuits from Elite PROJECT DESCRIPTION

Launch Elite biscuits under Merlin name as of Nov.1, 2004 (start of Sales to Trade) in

Romania.

BACKGROUND

• packed volume is estimated to min. of 24000t and max. of 32000t out of the total market of 72000t - (National Statistics, Production data).

• Biscuit market is very atomized, with only one major player, Rostar that accounts for 25.4% of the volume (Nielsen, 2003)

• There is very little media support on biscuits. Ulker has max. 400$M yearly investment, mainly behind promotions. In May 2004 it launched Tempo sandwiches, price competitive to Rostar (4500lei/pack), with radio support.

• Biscuit shoppers are usually married women, with children, medium social class

LINE UP AND VOLUME OBJECTIVES

Volune (tons) Pack* % on going M1 M2 M3 2004 2005 Petite Beurre 100&240g 45% 95 68 81 99 342 1098 Picnic simple 65g 12% 25 18 22 26 91 293 cacao 65g 10% 21 15 18 22 76 244 Cream chocolate 65g 13% 27 20 23 29 99 317 strawberries 65g 10% 21 15 18 22 76 244 vanilla 65g 10% 21 15 18 22 76 244 TOTAL 100% 210 150 180 220 760 2440 •target for Y1 is 10% volume share of the packed market, i.e min. 2440t up to 3200t for 1st year• target for the 5th year of sales is 35% of total market, i.e. 25000t (upgrading of the bulk consumers to packed)

STRATEGIES 1. Concept is: crispy but shortbread, Merlin biscuits

from Elite helps you taking care of your family. They are the positive force that reveals the magic from the ordinary things of daily life.

2. Superior product for a mid tier pricing, indexing 150 vs. Rostar

3. Continuous media support on the most interesting category: cream biscuits.

4. Have minimum 2 product initiatives/year. To note, next initiative should be launch of specialities Apr. 2005, with a second push for trial for Merlin brand.

MARKETING PLAN. PRODUCT Sourcing: Vel PitarProduct performance should be net superior to

competition (i.e. Rostar), qualified through a 75:25 product test.– Petite Beurre: eaten as breakfast/ dinner (soaked in tea/ coffee/

milk). • 100g (to compete with 100g&140g packs on the market) • 240g (to compete with 300g packs)

• Picnic (vanilla, cacao)/ Cream (chocolate, strawberries, vanilla): desert while in society.

• 60g packs picnic (to compete with 65-70g)• 65g packs cream (to compete with 72-80g)

Packaging: flow packs, transparent window &with natural colors.

MARKETING PLAN. PRICING • Create mid tier, ensure index 150 vs. Rostar/kg (imports

are at index min. 200 vs. Rostar/kg) – 15% size discount on 100g vs. 240g– Less than 10000 lei/pack

Merlin Rostar Ulker

pack (g)

Shelf price/pack lei

pack (g)

Shelf price/ pack lei

Index Merlin vs. Rostar/pack

Index Merlin vs. Rostar/ g

pack (g)

Shelf price/ pack lei

Index Merlin vs. Ulker/pack

Index Merlin vs. Ulker/g

Petite Beurre 100 9600 140 8500 1.13 1.58 175 17000 0.56 0.99 240 19500 300 16000 1.22 1.53 Picnic 60 4000 70 3000 1.36 1.58 Cream 65 5500 80 4300 1.28 1.58 75 5000 1.10 1.27

MARKETING PLAN. COPY STRATEGY

Benefit: Merlin “from Elite” helps you taking care of yourself and your family

Reason to believe: crispy but shortbread (tender)Brand character: good wizard (positive force) that

turns simple things into miracle (reveals the magic from the ordinary things)

Target: women 25-55y.o.Core target: women 30-40y.o., with children, medium

education, low to medium income

MARKETING PLAN. ATLObjective: min. 80% awareness, 50% trial

by month 6ATL Sep. Oct. Nov. Dec. Ian. Mar. TOTAL COST

GRPs 65@

3+

65@

3+

50@2+

50@2+

50@2+

50@2+

Copy 30” 350 350 250 250 250 250

Copy 15” 150 150

TV*

Cost $M 42 42 25 25 25 25 182

Radio Cost $M 8 8 16

Print Cost $M 10 8 18

OOH Cost $M 40 40

PR Cost $M 20 20

276

MARKETING PLAN. BTLIn store promos & promos to generate trial: TURN

SIMPLE THINGS FROM THE FAMILY LIFE INTO MIRACLE :

a) buy 5 packs of Merlin biscuits, send packaging to Elite office & win (via ruffle): 10 trips with your family (5 persons, 3 days) to Disneyland: 35,000USD

b) taste events in 15 top stores: 7000USDc) scratch cards with prizes: 8000USD

- picnic baskets- tickets to Circus (500 persons)- Elite coffee/ cappuccino/ chocolate;

Budget BTL : ~ 50$M

FINANCIAL PERSPECTIVE• Min. 2440t, i.e 4000$M Net Sales and 1250$M profit (at a 30%

profit rate) in the first year, given 780$M marketing support

% 2005Net sales

$/kg COGS $/kg GM $/kgMarketing

$/kgProd.

contrib. %45% 1098 1.76 0.66 1.10 0.32 0.78 0.44

Picnic simpli 12% 293 1.32 0.81 0.51 0.32 0.19 0.14cacao 10% 244 1.32 0.90 0.42 0.32 0.10 0.08

Crema ciocolata 13% 317 1.65 0.94 0.71 0.32 0.39 0.23capsuni 10% 244 1.65 0.88 0.77 0.32 0.45 0.27vanilla 10% 244 1.65 0.88 0.77 0.32 0.45 0.27

TOTAL 100% 2440 1.63 0.78 0.84 0.32 0.52 0.31

Petite Beurre

% 2005Net sales (M$) COGS M$ GM M$

Marketing M$

Prod. contrib. M$

45% 1098 1932 726 1207 351 855Picnic simpli 12% 293 386 238 149 94 55

cacao 10% 244 322 219 103 78 25Crema ciocolata 13% 317 523 300 224 102 122

capsuni 10% 244 403 216 187 78 109vanilla 10% 244 403 216 187 78 109

TOTAL 100% 2440 3970 1913 2056 781 1276

Petite Beurre

2. Elite Bamba

Launch Elite extruded snacks as of January 2005 (start of Sales to Trade) in Romania; continuous Marketing support will start 1 month later

BACKGROUND

• Value is estimated to min. of 12MM USD to max of 15MM USD

• Key competitors are Star Foods (Star, Krax, Loto)-48% value share; Standard (Oups)- 29% value share and Best (Lotto)- 13% value share

• There is no media support on bamba.

OBJECTIVES Target for Y1 is 30% share of the market, i.e

min. 4MM USD up to 5 MM USD

STRATEGIESDual communication directed to mothers (main buyer):

healthy product and to kids (main consumer): tasteSuperior product for a equal priceContinuous media support on the most appealing SKU.Have minimum 2 product initiatives/year.

PRODUCT Sourcing: AlimexProduct performance should be net superior to

competition (i.e.Star Foods), qualified through a 60:40 product test.

Line up: salt, cheese, pizza, pea nuts, fruitsPackaging: transparent window &with natural

colors.

FINANCIAL PERSPECTIVE

Min. 800t, i.e 4000$M Net Sales and 1600$M profit (at a 40% profit rate) in the first year

3. Elite Delis Premium Nuts

Launch Elite Delis premium nuts as of November 2004 (start of Sales to Trade) in Romania;

BACKGROUND

• Volume is estimated to 300t, i.e 3MM USD• Key competitor is Fiesta (over 40% value

share)• There is no media support on premium nuts.

OBJECTIVES Target for Y1 is 30% share of the market, i.e

min. 1MM USD

STRATEGIES• Communication under Delis: joyfull host that

invites you to discussions with your friends • Superior product for a equal price to competition• Continuous media support under Delis umbrella.

PRODUCT Sourcing: Elite InvestmentProduct performance is net superior to

competition (i.e.Fiesta), qualified through a 60:40 product test.

Line up: cajou, pistacchio, almonds, 50-100g bags

FINANCIAL PERSPECTIVE

Min. 100t, i.e 300$M Net Sales and 100$M profit (at a 30% profit rate) in the first year