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Golf Flake Positioning and

Repositioning

Consumer Behavior
Case Study
Team Members
• Amir Shaukat
• Col Usman
• Sadia javaid
• Shereen Nawab
• Zulfiqar Awan
Why PTC?
• Interesting product
• Hidden marketing
• Challenges
Breakdown
• Gold Flake positioning & repositioning
• Tobacco Industry of Pakistan
• Pakistan Tobacco Company (PTC)
• PTC Consumers
• Industry players
• Branding structure
• Comparison of God Flake & Morven Gold
• Action strategies
• Future
GF Positioning & Repositioning
• The context
– Rashid Khan, Brand Manager
– Increase in market share from 15.3% to
17.1%
– Targets set and gaps left
– GF vs. MG
– Brand re-launch
– Further challenges
Tobacco Industry in Pakistan
• Dependable source of government income,
27.5 billion rupees, 4.4% of GDP
• Largest yield of crop
• Employs 1 million people
BUT
Ill effects of smoking
Impact on health
90% lung cancer attributed to smoking
Shift from west to developing countries
1/3 men smokers
4% women smokers
Pakistan Tobacco Company
(PTC)
• Subsidiary of British American Tobacco
Company (BAT)
• The first multinational company
• From a single factory to a company
involved in every aspect of cigarette
production
• Efforts in the development of the country
– Modern agriculture
– Industrial practices

• Investment in people, brands, technology,
innovation and communities
– Environment, Health & Safety standards
– Industrial Relations practices
– Highly values human resource
• Largest revenue generator
– 2000, Rs. 10 billion in taxes
Consumers
• Soft Taste Amateur
– Consume out of fashion
– Mild taste
– Use premium brands
• Enthusiastic Junkie
– Caffeine addicts
– Loyal breed
– Biggest segment
• Robotic Workers
– Low income group
– Price conscious
– Not loyal
• ASU30
• MSAA30
Pakistani Tobacco Industry Players
• Pakistan Tobacco Company (PTC)
– Industry leader with 46.8% share
• Lakson Tobacco Company (LTC)
– 36.3% share
• Others
– Includes Khyber Tobacco Company and
Mardan Walas
– 5.9 % share
• Smuggled tobacco
– 12%share
Industry Share Division

Industry Share division

5.9% 12.0%
PTC
LTC
36.3% Others
45.8%
Smuggled
Brand Architecture
• Premium Brands
– Benson & Hedges: PTC launched Benson &
Hedges in Pakistan in March 2003. It is
made with the finest hand picked golden
Virginia tobacco from across three
continents.

– Gold Leaf: The story of John Player Gold


Leaf starts from the story of its founder, John
Player. John Player Gold Leaf has an identity
entrenched in sailing and maritime adventure
Cont.
• Medium category Brands
– Capstan: has a rich heritage, originating in
Britain in the 19th century
– Gold Flake: Launched in 1982, in a 'soft cup'
packaging, the brand took off when it was
repositioned in the value for money segment
– Will King: takes its name from the heritage of
one of the origional Imperial Tobacco
Company families: the Wills Brothers of
London.
Cont.
• Lower Category Brand
– Embassy: the third leading volume brand in
Pakistan, is most popular in the Punjab
where it enjoys a leading position due to its
equity and loyalty.
Gold Flake
• PTC’s highest volume producing brand
• PTC’s highest revenue generator
• Country’s second highest selling brand
• PTC’s aim was to bring Gold Flake from
the second highest selling brand to the
highest selling brand of the country.
Comparison- Gold Flake Vs
Morven Gold
• Value for money equation better for
Morven Gold.
Cont.
• Perception of product quality and
packaging for Morven Gold
• Trail was an exercise in futility.
• Limited edition packs require research
and monitoring.
• Large number of products sizes offered.
• Appeal.
Action strategies
Gold flake Vs
Morven gold
Action strategies
• Brand Vision
• Brand Plan
• Key Objectives
Key Objectives
• Pack & product improvements
• Brand Image
• ASU 30 share in brand
• Distribution
Brand Image
• Masculine
• Young Adult
• High Quality
• Modern
Strategies for positioning
• physical parameters of pack and product
• creative use of media
• phase out of 4 of the 6 Gold Flake
variants
• research activities focused on ASU 30
preferences
Advertising
• Nation-wide Cinema Network
• the national dailies
• Containers with big screens and sound
system roamed around in the rural area
Product
• Gold Flake Supreme
• series of testing
• waste material costs minimized
• number of suppliers
Price
• inflation
• price increases by competitors
• selling price at retail level
Problems in the way
• Promotion restriction in case of cigarettes

• International Marketing Standards


• PTC does not understate profits in its
financial reporting
Research
• Post launch feedback channel were
establish
– watch the product’s performance after launch
– acceptance among target consumers
– monitor effectiveness of the marketing
activities
– identify gaps that the team had left.
Future
• Khan & his team are planning to sustain
the growth which they have achieved
during past 11 months. He is counting on
the strength & weaknesses of its
strategies and identified timely availability
& employee motivation is the most crucial
thing to improve in such a highly
regularized industry
Gold Flake’s New Packaging
Gold Flake Off Take Share
CONSUMER EXPENDITURE TREND:
FOOD, BEVERAGES & TOBACCO (US$)
Major Competitors’ Market
Shares In 2004
Industry Share division

5.9% 12.0%
PTC
LTC
36.3% Others
45.8%
Smuggled
Adult Smoking Rate
Target Ratings For Different
Attributes
Percentage Share Of Gold Flake & Morven
Gold In The Age Segment U-30
Brand Portfolio
• Benson & Hedges: In 1873, Richard Benson & William Hedges started a partnership in
London. From the very start, the idea was to make Benson & Hedges a style statement, which
is why the business started from London’s fashionable West End.
• PTC launched Benson & Hedges in Pakistan in March 2003. Made with the finest hand picked
golden Virginia tobacco from across three continents, the brand is packed with perfection to
seal its freshness.
• John Player Gold Leaf: With a distinct lifebuoy and sailor trademark, John Player Gold Leaf
has an identity entrenched in sailing and maritime adventure. Thus staying true to John Player’s
very first big brand - Player’s Gold Leaf Navy Cut cigarettes.
• Capstan: This brand has a rich heritage, originating in Britain in the 19th century. The brand
was created under the auspices of W.D. & H.O. WILLS at Bristol and London.

• Gold Flake: Like many of PTC brands, Gold Flake boasts its origins at W.D. & H.O. WILLS
where it was a premium brand around the end of the 19th century.
• Launched in 1982, in a 'soft cup' packaging, the brand took off when it was repositioned in the
value for money segment and later a 'hinge lid' variant was introduced in 2000.
• WILLS: This Brand takes its name from the heritage of one of the original Imperial Tobacco
Company families: the Wills Brothers of London.

• Embassy: The third leading volume brand in Pakistan is most popular in the Punjab where it
enjoys a leading position due to its equity and loyalty.
Distribution Of Gold Flake
Revenue Distribution of PTC
Revenue Distribution of PTC in
%age
Governmental Regulations
Marketing & Distribution
Expenses
Aims & Objectives
Organizational Structure
International Tobacco Products
Marketing Standards
Analysis
Main Issues

• How to position the Gold Flake against

the Movern Gold

• What promotional mix should be used

under the tight governmental restrictions?


Contt.

• What distribution channels should be used to

make Gold Flake available?

• How to sustain the growth of Gold Flake

• How to motivate the internal Consumers


Tools Used
• Industry Analysis
– SWOT Analysis
– PEST Analysis
– Porter’s Diamond Analysis
• Ansoff Matrix
• Reference Group Influence matrix
• Market Analysis
– Issues in Pakistani tobacco industry:
– Marketing restrictions:
• Communication Strategy
• Strategic Branding
• GOLD FLAKE Positioning & Repositioiing
– Perceptual Maps
– Positioning Statements
– Personality Statements
Contt..
• Customer analysis
– Segmentation
– AIOD Analysis
• Price Analysis
• Competitor analysis
– BCG Analysis
• Distribution channels:
• The 7s Mckinsey Analysis
Alternatives

• Conventional versus unconventional


promotion mix
• Aggressive strategy versus flanking
strategy for gold flake
• IT facilitator distribution versus whole sale
distribution
Recommendations
• Corporate Social responsibility (CSR) and
Public relationship (PR) programs
– Minimizing the use and pollution of water
– Waste recycling plans
• IT as a supply chain facilitator
• Intrinsic & Extrinsic rewards for internal
consumers
Bibliography
• Marketing research manager, Mr. Khurram
Javed
• Kotler, P. and Armstrong, G. (2006) Principles
of Marketing. 11th Edition: Prentice-Hall, Inc.,
New Jersey.
• Pakistan Tobacco Company Pakistan, Health
Program,http:/www.ptc.com.pk/oneweb/sites/
pak_62vkzb.nsf
• Lakson tobacco company, Company
Introduction, http://www.lakson.com.pk
Thank You

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