Master Thesis OLIM - Albania

CONSULTANCY PROJECT
The impact of advertising strategies in the Albanian branded sunflower oil market
MBA Student UNYT
REJLA BOZDO May 2009
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I would like to say THANK YOU to: my Consultancy Project Professor Mr. Phaedon Kidoniatis, my friend Arbi Lita for sharing his ideas with me, and Olim Company for supporting my research. Rejla
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CONTENT Executive Summary

PART ONE
Page 3 4
5 5 9 11 14 14 16 19 19 20 22
Literature Review / Theoretical framework examined 1.1 Branding a commodity 1.2 Differentiation of the brand 1.3 Branding strategy
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A general overview of the Albanian market economy 2.1 PEST Analysis 2.2 Development of manufacturing industry in a transitional economy
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Albanian Branded sunflower oil market 3.1 History of sunflower oil 3.2 General Overview of the market, Segmentation 3.3 Advertising strategies in branded sunflower oil market (Best practices, Albania vs. other countries)
3 PART TWO
27 28 28 34 38 41 44 47
Research - Methodology and Conclusions 4.1 Brand Positioning Research in the market compared to the TV advertising budgets 4.2 Why are Albanian branded sunflower oil companies using too much TV ads? 4.3 Optimized marketing budgets allocations (the case of OLIM)
4 5 6 7
Suggested course of action Appendix Bibliography
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Executive Summary
This Consultancy Project is focused on a special case in marketing and advertising strategies in branded commodities products. This is the case of OLIM Company in Albania which produces branded sunflower oil. Being a commodity product, the branded sunflower oil shows some very interesting features in the way the brand reacts towards different strategies of advertising. Through a research, this projects analyses the impact that TV advertising has on Olim brand and how the brands are positioned in consumers mind comparing to the advertising strategies that different brands in the market have. This project helps the branded sunflower oil producers to think on their strategies and find better solutions that optimize their budgets in marketing their brands.
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Part One
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1
Literature Review / Theoretical framework examined
1.1 Branding a commodity
We are all, hearing and using the words brand and branding everyday more. Often, when we ask ourselves as managers, What rules today?, the answer is a single word BRAND. What is a brand? If we have look on the Oxford American Dictionary (1980) about the meaning of brand and compare it with the meaning found on The Pocket Oxford Dictionary (1934), we can easily understand that the word has gained a commercial application. The American Marketing Association (AMA 2006) defines a brand as a name, term, design, or any other feature that identifies one sellers good or service as distinct from those of other sellers. The way brands are perceived or built depends also from the product category. A special and complex part of branding strategy is branding a commodity. The word brand comes from Old Norse brandr, meaning to burn. It was by burning that early man stamped ownership on his livestock and so helping to distinguish between the cattle of one farmer and another. The branding concept has been around for centuries to help producers distinguish their goods form the one of lower quality. One of the main role of brands is to assign responsibility to a particular manufacturer or producer. Even if the products are identical, consumers may evaluate them differently depending on how they are branded. Brands can signal a certain level of quality so that satisfied buyers can easily choose the Branding involves creating mental structures organize and their helping consumers about
knowledge
products and services in a way that clarifies their decision making and, in the process, provides value to the firm. Kotler Philip, Keller K. Lane,
Marketing Management
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product again by having a very low level of uncertainty and without using too much time to think on their decision. How do we create a brand? Although companies build the creation of brands on marketing programs and other activities, ultimately brand is something that resides in the mind of consumers. A brand is a perceptual entity that is rooted in reality but reflects the perceptions and perhaps even the idiosyncrasies of consumers. (Kotler Philip, Keller K. Lane, Marketing Management 12, 2006, p.276) Chernatony and McWilliam, 1990, note that In the beer market there are only marginal differences between brands, yet on branded product testing, consumers claim far greater differences, due to brand personalities. A very interesting note of De Chernatony (1993, p.174) is: Brands are complex entities that are conceived in planning documents, but ultimately they reside in consumers minds. They succeed because marketing strategies blend harmoniously with consumers needs. Yet, it is not uncommon for marketers to interpret brands only from an input frame of reference. Where companies are not sure for what their brands should stand, they would do best to begin with customers views of the brand, and try to reinforce the positive aspects of those beliefs. In the branding process is all about creating differentiation. To brand a product, it is necessary to teach consumers who the product is - by giving it a name and using other brand elements to help identify it - as well as what the product does and why consumers should care. Branding involves creating mental structures and helping consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the firm. (Kotler Philip, Keller K. Lane, Marketing Management 12, 2006, p.276)
What is a commodity? A commodity, per one Merriam-Webster dictionary definition is a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price. By definition, commodities lack the differentiation and ability to charge a price premium that strong brands have.
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Referring to Wikipedia, a commodity is something for which there is demand, but which is supplied without qualitative differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk. In other words, copper is copper. Rice is rice. The price of copper is universal, and fluctuates daily based on global supply and demand. Highly commoditized categories are characterized by 2 things: 1- Perceived product parity 2- Intense price competition How do we brand a commodity? We brand a commodity in the same way we do with all the other products. The clue element and the most difficult one is how to find the differentiator (the element hat creates the difference compared to competitors). In general consumers base their buying decision on two elements: Price - if they are price sensitive (price is more important to them) Brand if they are looking for quality and have the will and possibility to pay a little bit more. As far as the brand concept is involved, the differentiation process takes place. In commodity markets, the biggest challenge that manufacturers are facing today is how to differentiate their commodity so that their business moves up from the commodity market place to premium associated with consumer goods. All what is needed is to create some form of product differentiation to avoid their products being viewed as commodities. The commodities branding is a very complex challenge for marketers. This complexity comes out of the nature of these products defined as commodities above. For example, as far as sunflower oil is sunflower oil, why should an Albanian consumer buy Olim brand rather than another brand? What dos Olim give more to the consumer? How do consumers perceive this brand?
Trusted brands are not created over one night. They need time and proper strategy. A successful brand is defined, by De Chernatony and McDonald (1994), as an identifiable product, service, person or place, augmented in such way that the buyer or user perceives relevant unique added values which mach their needs more closely.
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Branding is a key element in marketing, especially for those products whose limited opportunities for differentiation mean that they could be viewed as commodities. (Beer branding in British and Czech companies: a comparative study, Chris Lewis, Angela Vickerstaff). In commodity markets, the In the British beer industry, (beer is very similar to sunflower oil, both considered commodities), consumers have been shown, by de Chernatony and McWilliam (1990), to hold typically one of four complementary and overlapping views of brands: biggest challenge that manufacturers are facing today is how to differentiate their commodity so that their business moves up from the commodity market place to premium associated with consumer goods. All what is needed is Visual identifier A guarantee of consistent quality A shorthand device An expression of self-concept to create some form of product differentiation to avoid their products being viewed as commodities.
Chernatony and McWilliam, 1990, note that In the beer market there are only marginal differences between brands, yet on branded product testing, consumers claim far greater differences, due to brand personalities. Almost the same occurs in the Albanian sunflower oil market; consumers perceive better quality of one brand versus the other when they test branded product. Consumers find the brand value in commodities in three main forms: Reassurance: A brand is a stamp of authenticity and quality that ads value by promising reliability and helps to establish repeat purchase patterns. Value Expression: Consumers choose brands that reflect the individual values that they possess in order to communicate the desired signals in the highly social environment they inhabit. Associations of past: Often a brand creates two basic associations of past consumption in mature categories like milk: ritual or nostalgia.
The impact of advertising strategies in the Albanian branded sunflower oil market 1.2 Differentiation of the brand
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Although the definition of the brand varies by context and discipline (Aaker 1991; Aaker et al. 2004; Anderson and Carpenter 2005; Calkins 2005; Fournier 1998; Holt 2002; Keller 1998; Stern 2006; Tybout and Carpenter 2001) the brands primary function is in identification and differentiation. Nowadays brands and branding has become a crucial element on marketing strategy. It is not just for distinguishing, but brands are giving identity to products. Based on products characteristics and marketing strategy, brands are creating perceptions and differentiation. We all know that when we say Coca-Cola, we are not talking about a simple Cola, we are perceiving experience, quality and trust on the brand. We have positive feelings for different brands and consumers consider them special and highly differentiated from other brands. A successful differentiation must: (1) The differentiating benefit is highly important to the largest customer (2) The brand can deliver the benefit well (3) The competitors can not offer this kind of differentiation A product should be able to distinguish itself simultaneously from the
competition and provide an effective entry barrier to existing and potential competitors. Among the other
dimensions a company can use to differentiate its market offering are personnel, channel and image.
Brand is not just a differentiator but also a value creator for a product. Today the world is moving towards lesser and lesser differentiation in the products due to technological developments. This development has reduced the competitive advantage of many companies that had previously a concept of powerful brands. To avoid the commodity trap, marketers must start with the belief that you can differentiate anything. Brands can be differentiated on the bases of many variables. (Kotler Philip, Keller K. Lane, Marketing Management 12, 2006, p.318).
Product Differentiation Brands can be differentiated on the bases of a number of different product or service dimensions: product form, features, performance, conformance, durability, reliability, repair ability, style and design, as well as such service dimensions as ordering ease, delivery,
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installation, customer training, customer consulting, maintenance and repair. Besides the above specific concerns, one more general positioning for brands is as best quality. Quality is also communicated through other marketing elements. A high price usually signals premium quality. Quality image is also affected by packaging, distribution, advertising, and promotion. (Kotler Philip, Keller K. Lane, Marketing Management 12, 2006, p.318)
Personnel Differentiation Companies can gain strong competitive advantage through having better-trained people, who good reputation to the companies they work for. Better-trained personnel exhibit six characteristics: Competence: They posses the required skill and knowledge Courtesy: They are friendly, respectful, and considerate Credibility: They are trustworthy Reliability: They perform the service consistently and accurately Responsiveness: They respond quickly to customers requests and problems Communication: They make an effort to understand the customer and communicate clearly. Retailers in particular, are likely to use their front-line employees as e means od differentiating and positioning their brand. (Kotler Philip, Keller K. Lane, Marketing Management 12, 2006, p.320)
Channel Differentiation Companies can achieve competitive advantage through the way they design and built their distribution channel, in terms of coverage, expertise and performance.
Image Differentiation Marketers must know that buyers respond differently to company and brand images. Identity and image are not the same. Identity is the way a company aims to identify or position itself or its products. Image is the way the public perceives the company or its products. An effective identity contributes in three things: 1- It establishes the products character and values preposition. 2- It conveys the products character in a distinctive way. 3- It delivers emotional power beyond a mental image.
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For the identity to be effective, it must be conveyed through every available communication vehicle and brand contact. Companies can also create a strong image by inviting prospects and customers to visit their headquarters and factories.
1.3 Brand Development and Branding Strategy

The purpose of a brand name is to communicate a single or range of positive attributes, usually tangible, about a product or a service. Having a sustainable differentiation helps the product identification through the brand so that the consumers build up a level of confidence in the product being consumed to the extent that consumers become habitual in their purchase decision. From what is explained above the brand has two main roles to play: a) In communicating to the customer a range of positive attributes associated with the service provider, whether these be perceived or real. b) Building up a level of awareness and knowledge within the consumer, so as to create confidence to repeat purchase with the company.
Successful brands create a basis for the development of a competitive advantage over and above of their competitors and communicate an image and personality which translate into positive consumer attitudes towards that product/manufacturer over a period of time. As it is difficult for the commodities to create the points of difference, the brand itself may become the primary or the only point of difference. The branding strategies must be developed in to directions: 1- Create awareness and products quality perception to the level of final customer through communication techniques. 2- Create awareness and services quality perception to the level of the retailer through superior responsiveness (order fulfillment, technical support, customer service).
As long as we are considering two categories of awareness, we also should consider strategies for both levels, corporate branding and product branding. The corporate brand is primarily a construct of a mainly relational nature. For example, the sustainability of customer value is dependent upon the internal processes that deliver the
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brand promise, and the behavior of staff that embody brand values. Consequently the role of employees in building and maintaining customer relationships is crucial (Harris and de Chernatony, 2001; de Chernatony, 2001; Miles and Mangold, 2004; Chun and Davis, 2006). Secondly, enhanced customer value is developed and delivered through a firms network of suppliers and partners that become an explicit part of the preposition. Finally, relations with all external stakeholders including investors, media, and local communities are important as they contribute to the perception and the reputation of the brand (Einwiller and Will, 2002). The role of brand values in market driving is evident in a number of relationships. For existing staff, are used as working principles and rules for staff development, while for potential employees they serve as recruitment principles. For customers, they constitute the shopping and behavior rules, and for societal actors they provide the basic relationship norms. (Tarnovskaya Veronika, Burt Steve, (2008), The Role of Corporate Branding in a market driving strategy, International Journal Of Retail & Distribution Management, 36 (11), p.950) King (1991) advocates the need for the development of Company Brands, in response to a dynamic and changing marketing environment. King argues that factors such as improved levels of consumer awareness, increased competition and industry restructuring have created a new opportunity to establish the company as a Service Brand, synonymous with service and quality. One of the criteria to achieve this is an organizational structure which reflects the needs of the brand and of the customer. According to Peter Betts in Commodity Markets and Manufacturer Retailer Relationships, this realignment of operational staff forces the organization as a whole to own the problems which are normally associated primarily with sales and marketing. The resultant benefits are not only that the company is more flexible in responding to a changing environment, but also that internal communications are enhanced and enriched through the integration of operational activities. What the company needs at this point is the implementation of a strategy to develop a closer relationship with the retailers and to pay more attention to the role that merchandising can play in influencing the consumer. following steps can help in building a successful strategy: 1Develop a clear and concise message to the consumer through a distinct and recognizable image. 2Integration of target marketing effort through improved servicing of the brand in retail outlets. This includes the development of improved merchandising skills in-store, enhanced point of purchase display; increased The
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levels of information literature and enhanced product awareness and training for retail staff. 3Recognition of the need to involve the consumers in concept testing and design phase, prior to launching any new product. 4Realignment of existing product types/names into a coherent and meaningful product offering to the customer.
Branding commodities offers additional value both to the consumers and the producers by leading to commodity differentiation and hence enables consumer preference. Except the differentiation through product or non-product related measures, secondary associations are often used in developing branding strategies for commodities, so that the brand attributes from such associations are transferred to the product. These secondary associations can be made through: Companies: The Company in such cases tries to transfer the brand associated with them to increase the credibility of the brand. Country of origin: Because of specialty of resources or extra-ordinary skills lying in a country certain favorable characteristics are often associated with the product category and a country. Co-branding: Other strong brands in the joint consumption stage are used. Characters: Often through cartoons, comic strips or figures, products are promoted to display certain qualities. Events: Sponsorship of events is used extensively by certain product to develop stronger points of association with the category they are associated.
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2
A general overview of the Albanian market economy
2.1 PEST Analysis
Albania came out after 50 years of communism in the early 90s. It was then when Albania made its political change from monism to pluralism, from an isolated economy absolutely based on government control to the free trade economy. All these changes where vital for Albania as a country and also for Albanians in the social context. The communist era was an era of darkness and total isolation for Albania. Exchange of information was totally centrally controlled and used as a tool to deprive peoples rights and freedom of participation rather than a tool that leads to healthier life and greater social freedom. Computers, cell phones, simple office equipment and even stationary phone lines where hardly known by mass Albanians. Dictatorship of Enver Hoxha had a strong impact also on social environment. The country was isolated from western cultural influence. The supply for everyday products as milk, bread, meat, eggs, etc, was far lower than the demand. People used to stay in lines and buy these items on regular bases and in quantities established by the government. There were no private cars owned by Albanians, no foreign trends of clothes, no fashion As long as, there was no way to provide the wanted quantity and quality of products, the demand was controlled by the government policies, so we can not easily discuss on the consumer psychology at that time. Since year 1990, Albania is making the difficult transition to a more modern open-market economy. Macroeconomic growth has averaged around 5% over the last five years and inflation is low and stable. The government has taken measures to curb violent crime, and recently adopted a fiscal reform package aimed at reducing the large gray economy and attracting foreign investment. The economy is bolstered by annual remittances from abroad representing about 15% of GDP, mostly from Albanians residing in Greece and Italy; this helps offset the towering trade deficit. The agricultural sector, which accounts for over half of employment but only about one-
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fifth of GDP, is limited primarily to small family operations and subsistence farming because of lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Energy shortages because of a reliance on hydropower, and antiquated and inadequate infrastructure contribute to Albania's poor business environment and lack of success in attracting new foreign investment. The completion of a new thermal power plant near Vlora has helped diversify generation capacity, and plans to improve transmission lines between Albania and Montenegro and Kosovo would help relieve the energy shortages. Also, with help from EU funds, the government is taking steps to improve the poor national road and rail network, a longstanding barrier to sustained economic growth.
GDP (purchasing power parity) in 2008 was $21.82 billion (Albania has a large gray economy that may be as large as 50% of official GDP). GDP growth rate is 6.1% and GDP per capita in 2008 was $6,000. GDP composition by sector in 2008 was as follows: agriculture: 20.6% industry: 19.9% services: 59.5%
According to INSTAT (The Institute of Statistical Data), during 2007, have been active 62 700 enterprises. These enterprises have 222 600 employees. During 2007, producers of services realized 65% of total turnover and represent 53% of employees, while producers of goods have 17% of the total number of enterprises and realized 35% of total turnover. The industry sector, classified in the group of producers of goods, during 2007, has 20.5% of total turnover, 11.9% of total number of enterprises, 34.1% of total number of employees and 33.1% of total investments. Political changes of early 90s created an opportunity for the Albanians to increase communication with the rest of the world. The changes exposed Albanians to high technology that had been used for so long from the neighbor countries. Computers and other equipment became tools so frequently used in government institutions, public administration and private sector. After 19 years of pluralism, the political situation seems to be stabilized. On 5th April 2009, Albania and Croatia entered the NATO. This will help Albania for the procedures to join the European Union. At this point, free trade agreements do not help the local manufactures and
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also government does not have clear strategies to help local production grow. Albania has always been a very pro-American country and tightly connected with Italian and Greek economies. Regarding the actual global crisis, The International Monetary Fund (IMF), releases the following statement on current situation in the region and in Albania: The global economic environment has continued to worsen since the onset of the financial crisis last fall. According to the March 2009 IMF projections, in 2009, global activity is expected to contract for the first time in 60 years. Central and Eastern Europe are among the regions most adversely affected, reflecting sizeable fiscal and external deficits. These developments also affect Albania, even though its generally sound past macroeconomic and structural policies placed it in a better initial position than many other countries in the region. Still, exports are stalling, remittances have started to decline and credit growth is slowing, in turn putting a damper on investments. The growth of budget revenue is slowing at the same time as both domestic and external budget financing are becoming increasingly scarce. (http://www.imf.org/external/country/ALB/index.htm) The 50 years of dictatorship are a strong factor that still influences the Albanian economy and will be impacting the consumer psychology in Albania for a long time. As Albania was isolated, no foreign products were allowed to be imported. This situation was strongly reflected on the market in the years after the 90s. Albanian consumers were oriented towards the foreign brands. It became hard for the Albanian producers to compete in the market.
2.2 Development of manufacturing industry in a transitional economy
A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a free market economy. Transition economies undergo economic liberalization (letting market forces set prices and lowering trade barriers), macroeconomic stabilization where immediate high inflation is brought under control, and restructuring and privatization in order to create a financial sector and move from public ownership of resources to private ownership. A planned economy and a market economy are completely different philosophies. economic system. Below we will give a basic model for each type of
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The basic model of a planned economy
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In a planned economy, the physical factors of production are owned by the government and also labor is regulated by the government. A politburo in collaboration of a planning office decides on the production of all commodities and also on prices, wages and interest rates. The planning of physical production in the form of imposing production targets is the central point of the planning system. Prices play a secondary role. The limits of production are provided by the amount of capital and labor available in the country (Krelle, W. (2000), Problems of transition from a planned to a market economy, Bonn Econ Discussion Papers, Bon, Bonn Graduate School of Economics, p.3). This is the reason why in a planned economy, the production will be lower compared to that in a corresponding market economy and the production structure is different an in general does not correspond to the demand of households. The labor supply is larger and the labor productivity is lower.
The basic model of a market economy In a market based economy, the factors of production are owned by private persons who are free in their economic decisions in the limits of their income and of the prices. Production is determined by the effective demand of all persons in the society. The demand is limited by the prices and income. As a rule, in a planned economy, very old capital is used and so very old machines are used. This is due to the fact that in a planned economy the Politburo or the planning office puts the production quotas as high as possible such as the managers are forced to use also the eldest machines to fulfill the quota, without respecting the costs. In a market economy old machines are scrapped if the price of their output does not cover the cost of production. The changing process from a planned to a market economy is very complex because it is not just a change of economic models but also a change that is reflected on the change of constitution and of political and social institutions, freeing of prices, privatization, establishing of a banking system, fighting inflation and others. According to Krelle, W. (2000), Problems of transition from a planned to a market economy, the basic difficulties of the transitional economy are listed below: 1The production structure of a planned economy does not conform to the demand structure of a market economy. The preferences of the consumers and private investors are not those of a politburo, thus the final demand is different and thus the production structure.
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The structure of capital and of goods is different. New industries have to be built up, old ones must be given up.
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Many plants which are now exposed to competition cannot compete with the costs inherited from the planning period. Efficiency of production is needed, which in turn leads in most cases in dismissal of workers.
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If the borders are opened to free trade, the economy has to be integrated into the world trade, i.e. into the international division on labor, which may lead to another type of structural change and in many cases also unemployment.
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Prices have to be adapted to marginal cost and wages to the value of marginal product of labor. This leads to changes in the income distribution which will hurt some people.
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Elder capital which still has been used in the planning era must be scrapped. With high rates of unemployment labor supply decreases. The real wage of those persons who are nevertheless employed will be higher than under the planning regime because those who are now working at the more modern machines produce a value which is lager than their real wage under the planning regime.
In this transitional economy a lot of problems will occur and a lot of changes should be made in different aspects. A market economy needs a firm legal framework in order to function adequately. Private property should be guaranteed as well as freedom of trade, freedom of price formation, free movement of capital and labor. Private contracts must be enforced by law, rules of bankruptcy established. From the start of transition on there must be laws against monopolization and collusion and these laws as all others must be enforced. This is of great importance especially at the beginning when public property is privatized. There must be a legal framework for the running of firms. The size of investments is also of great importance.
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3
Albanian branded sunflower oil market
3.1 History of sunflower oil Sunflower is a native of North America but credit for commercialization goes to Russians. Evidence reveals that Sunflower was cultivated by American Indians in the present states of Arizona and New Mexico since 3000 BC. It was used in many ways by Indians. Seeds were grounded and mixed with flour for cakes, mush or breads. Some tribes mixed the meal with other vegetables such as beans, squash and corn. Seeds were also cracked and eaten as snack. Seeds were squeezed to take out oil and this oil was use to make breads. Spanish explorers brought Sunflower to Europe and initially it found its use as ornamental plant in gardens through out Western Europe and later on some medicinal use of the plant were developed. An English patent was granted for squeezing oil from seeds by 1716 and in 18th century Sunflower cultivation became very popular and most of credit for this change goes to Peter the great. The commercial manufacture of sunflower oil started by year 1830. Russian Sunflower seeds found their way to US during 1880. Seeds were and even now are being sold as 'Mammoth Russian Sunflower seeds'. In US initially it was used as feed for poultry and later processing of seeds into oil commenced. Canada started Sunflower breeding program in 1930. Now Sunflower farming is being carried out through out America, Europe, Canada and many parts of Asia and Africa.
Sunflower oil is finding its use in countries like Asia, Australia, Argentina, South Africa, 20
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Turkey, most of southern and eastern Europe, Commonwealth of Independent States (former Soviet Union), the United States of America.
3.2 General overview of the Albanian market, Segmentation
The development of branded sunflower oil market in Albania started in the early 90s. Little bottles of 0.5l from Bulgaria were sold. In 1995, it was Floriol, the first brand that entered the market. Floriol is actually the leading brand in some important cities in Albania. Olim is another very important brand in the market, which is very competitive and applying strategic marketing. Floriol is an imported brand, Olim is a local brand produced by Olim Company. Olim entered the market in 2001 with high growth rates. Since the first years of democracy, there were also other brands in local markets, but they were just local producers. Olim and Floriol have been competing for a long time. Since 2006 the market dimension changed because of the local producers were trying to build brands and expand in the national market. Official data from the Albanian Ministry of Agriculture show that the total market of produced and imported sunflower oil is about 38-40 thousand tons. With an average price of 1.25 Euros during 2007, the sunflower oil market generated a turnover of around 47 500 000 Euros. According to the same source, 63% of the market are imported brands, 37% are brands produced in Albania. The Albanian production of sunflower oil increased with 15% from 2005 to 2006. According to some data published by Monitor Magazine, the monthly consume of each person in Albania is approximately 0.8-1 liter/month.
Sunflower Oil production, 2000-2007 (ton)
Source: Ministry of Agriculture
Market Shares 2007

Source: Drejtoria e Pergjithshme e Tatimeve
25000 20000 15000 10000 5000 0 2000 2005 2006 2007
Olim 23%
T tjert 59%
Floriol 18%
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Since 2007, the price of sunflower oil has been increasing, so the structure of sales in all companies was affected moving towards the 4-5 liters package. Also, it is typical for the market that in certain areas one brand is stronger than another. The government regulations have also a great impact on the trade and production of sunflower oil in Albania. The taxes of import for both products; for the in bottled branded sunflower oil and the crude oil is zero. Other taxes are based on the price of reference which is lower for the crude oil rather than the in bottled one, but not lower enough to make the home production price competitive towards the imported brands.
Segmentation Target Markets The major actors in the branded sunflower oil market are: Olim, Floriol, Fiol, Crystal, Bomira and Bimal. Olim and Floriol have been in the national market for a long time. Also Frito is another brand of Olim Company. Olim has the best distribution channel, and Floriol is also very strong. The other brands expanded nationally just in the last couple of years. The local brand, Olim and the imported brand Floriol, invested on the brand since the time they entered the market. They are perceived by the customer as high quality brands. Their price is approximately 0.15 Euros/liter higher than the others. Olim and Floriol are market leaders for the 1 liter package. The other brands are cheaper and mainly fighting for the big package market. As the price increased, Olim started to focus also on the 4-5 liters package. Olim Company started the production of Frito brand in year 2003, for the segment of consumers that were price-sensitive. Frito was created from the company to compete the economic brands as Crystal, Fiol and the others. This is why the market share for Olim Company is bigger than the market share for Olim as product brand.
The following chart gives a more detailed picture of market orientation for each group of brands:
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Differentiated brands of high quality perception Brand sensitive market
Differentiated brands of price competitiveness Price sensitive market
OLIM FLORIOL
CRYSTAL FIOL BOMIRA BIMAL
3.3 Advertising strategies in branded sunflower oil market (Best practices, Albania vs. other countries)
The sunflower oil is a massive product, so it is logical that to create the brand, companies generally use mass-communication, especially in the phase of entering a market. This is because of the large number of customers to whom the company is interested to create the brand awareness. The following cases are some examples of marketing practices in the world of branded commodities.
Enova Oil
Situation:
ADM KAO LLC was unhappy with the packaging of its Enova oil, so they turned to Jones and Thomas Marketing Communications.
Primary Goal:
Create an appealing design to communicate the health benefits of Enova oil, while also conveying that this is a high-end, natural productall via the product label.
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Marketing Solution:
In the chosen bottle wrap format, we creatively brought together vibrant greens to represent nature and vivid yellows to suggest cooking oil. We also included important messaging about Enova's health benefits without overwhelming or cluttering the packaging. Plus, to help position Enova as a premium item, we added rich gold tones to the high-end design. To ensure that printing quality was maintained, a representative from Jones and Thomas traveled to Brazil to press check the packaging prior to printing. While redesigning the packaging, Enova oil was awarded the Good Housekeeping Seal. To highlight this fact, we developed a brightly magenta colored neckband that contrasted nicely with the rich tones of the label and stood out on the shelf. Supporting materials such as coupons and direct mailers also helped raise awareness and drive interest.
Enova campaign ads:
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GOLWINNER
Slogan: Gold winner sunflower oil: G for H
Gold Winner Sunflower Oil was launched by Kaleesuwari Refinery Pvt. Ltd. in 1995. The main strategy of the company is to provide quality, healthy sunflower oil at competitive pricing. Gold winner has 29 % market share in India and 72 % market share in Tamil Nadu.
Advertising strategy used:
The company involves in tease and reveals campaigns. The first one is G for H Gold winner for health. It is also suggesting ways to improve the existing process and product characteristics and also develop new products that can be positioned on the health platform. The marketing strategy for the domestic market is mainly concerned, with consolidation and expansion. The company has already widened its distribution network to cover all the southern states, and has made inroads into Maharashtra, since these are the major markets for sunflower oil category. Gold Winner also has major export plans targeting Sri Lanka, Singapore, Malaysia, Hong Kong and the Gulf region. The brands chief strength is the fact that it is not going on conventional marketing ways, rather it focuses upon spending time with customers and getting feedback. Source: www.goldwinner.com 26
The impact of advertising strategies in the Albanian branded sunflower oil market OLIM
2009
Olim Company is an Albanian company founded in 2001. Olim is the first brand of Olim Company. The main goal of the company is to keep the lieder position for the OLIM Sunflower Oil brand by continuously investing the brand by marketing strategies and using the second brand of the company, Frito Sunflower Oil, to control price movements in the market and protect OLIM brand by not loosing market share in sales volume for Olim Company. OLIMs target consumers are the one looking for high quality guaranteed products. (As being the first company in Albania using high standards in producing sunflower oil, in 2001 the Albanian Government decided to change the standards restrictions for sunflower oil into the one used by Olim Company). FRITOs target consumers are the one caring about low price, but also needing a guaranteed product by a well-known brand. OLIM is being sold in packages of 1L, 4L and 5L. FRITO is being sold in packages of 1L and 4L. OLIMs main competitive advantages are: the distribution channel and the promotion strategy. OLIM is the first well-invested brand in the market. Other brands are just imitating Olims promotion strategy, so the company is always looking for new and more
27
2009
attractive promotional techniques. OLIM is permanently using the image of the first most beautiful girl in Albania, Miss Albania 1992, to tell people that beauty comes from healthy body, and healthy body comes from healthy food. This strategy is actually very successful. The brand was supported by a strong mass-communication mainly through TV ads. TV airing time was very cheap when Olim entered the market, so TV ads were aired in high frequency. Olim is the most popular brand in Albania, not only in the oil market. Olim is a well-known brand for its high quality from almost everyone in the country. Brand image has been constructed considering the positive effect the high quality of the product has on consumers health. The first Most Beautiful Girl in Albania, Miss Albania 1992 has been the face of OLIM to tell people that beauty comes from inside, a healthy inside comes from OLIM. Olim has always been considered from everyone as the perfect promoted brand. Price is not very important for buyers since they absolutely trust the brand. Frito Sunflower Oil, is Olim Companys second brand. Fritos target group is the one of consumers who are price-sensible. Frito is cheaper than Olim because marketing expenses are lower, but people know that Frito is also a brand of OLIM Company, so they have quality guarantee.
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2009
Part Two
29
2009
4
Research - Methodology and Conclusions
4.1 Brand Positioning Research in the market compared to the TV advertising budgets. The aim of this research is to find out brand position in consumers mind for the branded sunflower oil that is sold in Albania. The results of this research will be compared with TV advertising budgets spent to build each brand. This research has been conducted through field interviews made in the city of Tirana, capital of Albania. According to the Albanian Institute of Statistics, Population and Density by Districts, 1 January 2008, Tirana has a population of 726 547 inhabitants. The city of Tirana has been chosen for this research because we can easily say that demographical movements of past 15 years from the other regions to Tirana, make this city representative for Albanian consuming psychology regarding commodity products. In total we conducted 225 interviews. 153 of them where considered for the researchs results. The remained number of interviews were not considered because of having irrelevant information or because the fact that the random sample was not applied. (A copy of the interview can be found in the Appendix). The sample of 153 interviews considered in this research can be considered completely a random sample. The areas in which these interviews were made, have been chosen in respect with the map of Tirana used form INSTAT and The World Bank in Poverty Assessment, 30
2009
issued on April 2009. We also made a correction respecting each category of the interviewed persons income declaration. The first category made by INSTAT (Albanian Institute of Statistics) corresponds to the highest income level of the interviewed persons. We considered the same interval of income till the lower income level. The following map is the map of the city of Tirana.
The results of this research are showed in the following charts:
Perceived quality of the Brand 1 Bomira Crystal Fiol Floriol First Count 1 5 5 78 % of total 0.7 3.7 3.7 58.2
31
Olim Grand Total 45 134 33.6 100.0
2009
Perceived quality of the Brand 2 Bomira Crystal Fiol Floriol Olim Grand Total Second Total 6 15 15 38 50 124 % of total 4.8 12.1 12.1 30.6 40.3 100.0
Conclusion 1: Persons that use imported brands or that are not users of sunflower oil, mainly prefer Floriol that is an imported brand that has entered the market in the early 90s. Olim is considered as high quality product in only 13% of cases.
What the consumers call quality brand, while actually using one brand:
Actual usage vs. perceived quality of 1st Brand 3Actual Bimal 1 Floriol Olim Bomira crystal Bomira Crystal Fiol Olim Fiol Fiol Floriol Olim Olim Crystal Floriol Olim Floriol Crystal Floriol (blank) Foreign Brand Floriol Total 1 1 1 2 1 1 4 2 1 2 3 37 1 57 2 1
32
Olim (blank) Mais Floriol Olim (blank) Olive Oil Floriol (blank) Grand Total 1 4 7 4 4 7 9 153
2009
How the nonusers of one brand perceive the quality of that brand:
Quality perceived of the "nonusers" Those that didn't Floriol Olim None Total
Count 15.0 5.0 17.0 37.0
% of total 40.5 13.5 45.9 100.0
choose any of the local sunflower oil Brands
Conclusion 1: Persons that use imported brands or that are not users of sunflower oil, mainly prefer Floriol that is an imported brand that has entered the market in the early 90s. Olim is considered as high quality product in only 13% of cases.
The impact of advertising on nonusers and on nonusers of local brands.
Impact of advertising on "nonusers" Price Those that didn't Advertising Sugestion of seller Relatives Quality
Count 2.0 1.0 2.0 8.0
% of total 5.7 2.9 5.7 22.9
choose any of the local sunflower oil Brands
33
Blank Total Price Advertising Those that chose the local Brands sunflower oil Sugestion of seller Relatives Quality Blank+Other Total 22.0 35.0 32.0 13.0 1.0 10.0 28.0 32.0 116.0 62.9 100.0 27.6 11.2 0.9 8.6 24.1 27.6 100.0
2009
Bomira Those who said that advertising had effect on their decision on Brand purchase crystal Floriol Olim Misri Total
1 1 2 9 1 14
7.1 7.1 14.3 64.3 7.1 100.0
Conclusion 2: The nonusers of one brand consider price factor as being not very important in choosing one brand, just 5.7% of the interviewed persons while the users of one brand consider price as an important factor in choosing one brand in 27.6% or almost as much as they consider the quality factor as important in their buying decisions. From those who declared that TV advertising has affected their buying decision towards the brands, 64% consider Olim as high quality brand towards 14.3% of Floriol. The nonusers of local
brands of sunflower oil consider price as an unimportant factor compared to the perceived quality of the brand they buy.
Conclusion 2: The nonusers of local brands of sunflower oil consider price as an unimportant factor compared to the perceived quality of the brand they buy.
34
The impact of advertising strategies in the Albanian branded sunflower oil market Conclusion 3:
2009
The nonusers of local brands of sunflower oil consider price as important as the quality that this brand offers. This fact was communicated with superlative comments from the interviewed knowing that people tend to overvalue the quality of brands they choose. Conclusion 3: The nonusers of local
brands of sunflower oil consider price as important as the quality that
The research results show that the competitiveness of local brands of sunflower oil is mainly based on price. There is still a tendency of consumers to see a foreign brand as with more quality compared to a local brand. The nonusers of a local brand of sunflower oil, give a more highlighted value to the difference in the perceived quality of brand in between Floriol (an imported oil brand that has been for a long time in the Albanian
this brand offers. This fact was communicated with superlative
comments from the interviewed knowing that people tend to
overvalue the quality of brands they choose.
market), and Olim (local brand that has been for a long time in the Albanian market). The oil brands have different effects on consumers choice regarding the advertising they have made. From the interviewed persons that declared that TV advertising had an impact on their buying decision, 69% of them are using Olim, while 14% of them are using Floriol. We conclude that brand position of sunflower oil brands in consumers mind are mainly influenced by: 1- Consumers tendency to consider as more qualitative imported brands of sunflower oil. 2- The high effect of the first users of TV advertising had on consumers mind. 3- The high effect of price factors on brand choice regarding the users of local brands of sunflower oil.
35
2009
4.2 Why are Albanian branded sunflower oil companies using too much TV ads? As a result from the examples given above, companies in different parts of the world use almost the same tools to create and differentiate a brand. TV advertising is the most used in the first stage of launching or creating a new brand, especially in the case of massive products. In commodities branding, TV ads are not very efficient from the budget point of view, because TV involves a lot of money, which can not be supported by the price structure. In Albania, actually, companies that sell and produce branded sunflower oil are using too much money on TV advertising. The following chart gives the total advertising time and budget spend on TV from the main players in the branded sunflower oil market (years 2004-2009).
Source: MC Monitoring
2004
total Nr.of airings events aired No 1043 361 186 158 No. 30" spots 0% No 787 192 256 66 Cost Rate Cards Lek 6268889 2261360 1400243 536230 GRP Weekend avr ISO 2003 share No % 4230 2448 272 768 Qual. Placem 1st or last % 61% 53% 22% 44% Prime Time 19:00-23:00 % 38% 24% 47% 37%
Brand Category Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil
Advertisers AM Group Floriol Fiol Am Group
Brands Olim Floriol Fiol Frito
2005
total Nr.of airings events aired No 6478 5027 2078 2125 401 No. 30" spots 0% No 3649 4372 1200 706 323 Cost Rate Cards Lek 39795442 17118447 8816245 6628650 6194100 GRP Weekend avr ISO 2003 share No % 33180 18% 4657 15% 3303 18% 8081 21% 5457 3% Qual. Placem 1st or last % 65% 23% 32% 20% 58% Prime Time 19:00-23:00 % 24% 11% 38% 27% 47%
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil AM Group Fiol Crystal Floriol Floryhen
Brands Olim Fiol Crystal Floriol Floryhen
36
2006 total Nr.of airings events aired No 4899 2375 2332 738 635 59 No. 30" spots No 4357 1101 1627 514 359 59 Cost Rate Cards Lek 17163850 13892300 19981885 4954741 4479600 1335600 GRP Weekend avr ISO 2006 share No % 14986 19% 15373 15% 24167 23% 5803 42% 6077 17% 872 2%
2009
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Fiol Floriol AM Group Crystal Bomira Floryhen
Brands Fiol Floriol Olim Crystal Bomira Floryhen
Qual. Placem 1st or last % 31% 52% 82% 35% 56% 78%
Prime Time 19:00-23:00 % 15% 18% 40% 32% 13% 97%
2007 Nr.of insertions 717 2869 1180 1993 1763 No. 30" spots Cost Rate Cards Lek 10638283 15934262 7880750 30557992 11358500
total GRP Weekend avr ISO 2007 share No % 2357 23% 7303 25% 8819 10% 20832 15% 9415 8% Qual. Placem 1st or last % 6% 22% 61% 82% 25% Prime Time 19:00-23:00 % 36% 32% 22% 43% 32%
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Crystal Fiol Floriol AM Group Bomira
Brands Crystal Fiol Floriol Olim Bomira
487 2951 562 1518 883
2008 Nr.of insertions No 4399 2337 1814 850 339 326 No. 30" spots No 2208 1541 641 620 177 296 Cost Rate Cards Lek 36372397 26362595 10589980 9758083 12179600 5234600
total GRP Weekend avr ISO 2007 share No % 10486 10% 8170 15% 6552 11% 5390 12% 5471 54% 3286 1% Qual. Placem 1st or last % 83% 76% 64% 54% 15% 91% Prime Time 19:00-23:00 % 25% 9% 30% 33% 42% 52%
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Bomira Fiol Bimal Floriol Crystal AM Group
Brands Bomira Fiol Bimal Floriol Crystal Olim
2009 January Nr.of insertions 377 284 86 4 No. 30" spots Cost Rate Cards Lek 3498880 3137500 1551950 51000
total GRP Weekend avr ISO 2008 share No % 1631 11% 1596 4% 913 0% 29 0% Qual. Placem 1st or last % 91% 38% 65% 25% Prime Time 19:00-23:00 % 25% 2% 49% 50%
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Bomira Crystal AM Group Bimal
Brands Bomira Crystal Olim Bimal
216 197 82 2
2009 February Nr.of insertions 509 431 109 12 No. 30" spots Cost Rate Cards Lek 6896300 4356100 825500 228000
total GRP Weekend avr ISO 2008 share No % 4252 7% 2443 10% 597 49% 134 0% Qual. Placem 1st or last % 93% 11% 0% 67% Prime Time 19:00-23:00 % 42% 5% 35% 50%
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Bomira Crystal Floriol AM Group
Brands Bomira Crystal Floriol Olim
326 285 30 13
37
2009 March Nr.of insertions 515 452 180 15 No. 30" spots Cost Rate Cards Lek 5828700 4615450 1203500 621120 total GRP Weekend avr ISO 2008 share No % 3761 8% 2643 4% 1002 46% 719 100%
2009
Brand Category Advertisers Sunflower Oil Sunflower Oil Sunflower Oil Sunflower Oil Bomira Crystal Floriol Fiol
Brands Bomira Crystal Floriol Fiol
315 292 52 16
Qual. Placem 1st or last % 83% 11% 0% 47%
Prime Time 19:00-23:00 % 37% 4% 26% 87%
2009 April Nr.of insertions

144 102
total No. 30" spots Cost Rate Cards Lek

1089500 328500
Brand Category Advertisers Sunflower Oil Sunflower Oil Floriol Crystal
Brands
Floriol Crystal
GRP Weekend avr ISO 2008 share No %

726 468 55% 14%
Qual. Placem 1st or last %

0% 28%
Prime Time 19:00-23:00 %

28% 9%
44 21
The above charts (Source: MC Monitoring) show the frequency and the GRP
(Gross Rating Points) for each of the main sunflower oil brands advertised on TV. In fact, in Albania, TV ads are very much used in all market levels and product categories, because marketing concepts have been developed in the last years so TV is seen as the main and most important tool in communicating with consumers.
There are two main reasons that answer the question Why are Albanian branded
sunflower oil companies using too much TV ads? First, it is a massive product that is communicated through mass-communication. Second, Olim, the first Albanian company that entered the branded sunflower oil market used TV ads to build the brand so the others had to follow.
Olim Company was created in 2001. At this time there were other five producers of sunflower cooking oil. OLIM decided to differentiate its product by creating a brand name. Other producers were operating as local producers and had no idea on marketing strategies. As in other countries, competition was based on distribution strengths and price. In important and large cities, consumers were generally buying foreign brands, for two main reasons, that will highly influence Olims marketing strategy and the future of the industry:
1- Coming out of a post-communist regime, people had been isolated for almost 50 years, so this made them dream for foreign products. During the Enver Hoxha regime, no imported products were sold in the market. There was no free market. The quantity of food that every family had to use in a month was established by the government. So as the offer was low, government policy tried to keep the demand low too. This environment deform
38
2009
Albanian consumers physiology. This is why during the new era of democracy; consumers profile in Albania was very ksenofilos. Consumers loved foreign products because of a long-lasting unfulfilled need. This was a big disadvantage for Albanian brands of every industry. 2- Coming out of a post-communist regime, production companies at that time had no experience. Even though private business recruited the best experts in the market, the trust of consumers on the local producers was zero. During the -90s, nobody believed that high quality products could be produced in Albania.
These two factors had directly to do with the consumers perception. A whole mentality should be changed. Olim Company was the first company which evaluated these two factors and built a strategy to start this change. The branding strategy was based on TV Advertising for two reasons:
1- TV Communication time was very cheap at that time 2- There were no marketing experts propose other effective methods, but even if there were the experts, the mentality couldnt be changed without the mass communication.
This is how it started. The differentiation of the brand was based on TV ads. So, the differentiation of the product was based on image building. Why? Because all producers were importing the raw material, so there was no differentiation based on quality. This is a clue argument. The company got back what was expecting. In 3 years OLIM had 60% of market share. (Here I will explain theoretically what means to consumers branding commodities. It is not the same as in other brands. In this case, by branding you give to consumers guaranty of quality.) I have some sales data to prove this. Olim is selling its second brand, Frito, without marketing support, just using the fact produced by OLIM. Companies can use TV ads, just to create the perception of high quality and to assure consumers on this. This is the top level of awareness that TV ads can reach. After reaching this point, the companies can optimize their marketing budgets by using other means to remind the brand to consumers.
39
2009
1.1 Optimized marketing budgets allocations (the case of OLIM)
As shown above, the case of Olim is very special. Olim is the first brand that was created mainly through TV advertising and now Olim is using very little advertising budgets on TV. The most important fact at this point is that Olim is a very strong brand now in the mind of consumers (as shown by the results of the research made in the market). The question is: What is Olim Company doing to support the brand if not TV ads? Even though Olim is not being advertised on TV, outdoor advertising is used and also point of sale materials are used. Every month the marketing team is supporting the brand with outdoor posters (on average 100 square meters each month). The weak competition at this point is helping Olim to create the brand awareness through little spending. The company is also using teams of promoters that focus on consumer care. The following photos show how flexible the brand is in generating new image to consumers:
These are the labels used on OLIM bottles in two consecutive years. The second and the fourth labels are used during winter holidays, which are very important to Albanians.
40
2009
Branded cars of Olim Company used for distribution purposes.
Wobblers used on the shelves to show the price
Outdoor advertising of Olim on the wall of a warehouse on the national way to Shkodra (one of the main cities in Albania)
41
2009
Posters of Olim on the entrance of a minimarket
Billboard of Olim
During the last couple of years, Olim Company started focusing more on other methods of visibility rather than on TV advertising. The budget used on TV ads comparing with other tools was in the rank of 1/5, and the companys sales were the same.
42
2009
5
Suggested course of action
By analyzing the case of Olim, there is a very interesting finding: TV advertising is an important tool in creating brand awareness and in building a brand image in all kinds of product and also in branded commodities. In this case good image supports high quality perception from consumers and TV ads helps the brand to create the differentiation. In the brand life cycle of a branded commodity there is a point that TV ads have no more or a very small effect on the brand. At this point the brand has been positioned in the mind of the consumer, so everything the marketing experts have to do, is just to remind the brand by using different tools. (We will name this point as the R Point the point of Reflection). This point is reached in different levels for different brands in the same category. The best thing to do is to find the optimal budget allocation of different tools and to use TV ads as less as possible if The Point of Reflection has been reached. This fact is very important on the branded commodities category because the ability of the product to absorb extra costs in the price structure is very limited due to the fact that the price is a very important factor in commodities. The conclusion of the project is to make the businesses in branded sunflower oil market and in other branded commodities market to be flexible and find other marketing solutions to increase brand awareness without spending too much. The examples given by Olim experience are good examples to use, but it is very important to find the right time for these strategies.
43
2009
6
Appendix
The questionnaire used in the research: Age Sex Number of household member Average income/household
Telephone number Place of interview
1- Are you the person that do the shopping in your family?
Yes
No
2 Which are the brands that come into your mind now? a................. b................. c................. d.................
3- Which oil brand are you actually using? (weight)___________________________
4- How long have you been using this brand?___________________________________________
5- What is the quantity that you use in one month?______________________
6- Wha are the reasons that make you buy one brand? Price TV ads 44
The impact of advertising strategies in the Albanian branded sunflower oil market Shopkeeper suggestions Friends and family others (specify)______________________
2009
7- Do you believe that one brand is more qualitative than another? Yes No
8- Which is the brand you consider more qualitative?________________
8- List the following brands from the one that you believe its more qualitative:
a. b. c. d. e.
Crystal Olim Bomira Floriol Fiol
9- To your opinion, what makes an oil brand, qualitative?____________________
10- Do you usually use the same brand? 11- Why do you change the brand?
Yes
No
The shopkeeper persuades you Family members persuade you TV ads Price No reason
12- Woul you change your actual brand if another brand would be cheaper? Yes No 45
2009
13- If yes, with which brand would you switch? ______________________ 14- Which of the following brands have you ever used? a. b. c. d. e. Crystal Olim Bomira Floriol Fiol
46
2009
7
Bibliography
1- Kotler Philip, Keller K. Lane, (2006), Marketing Management, 12, New Jersey, Pearson Education Inc. 2- Klein Naomi, (2000) No logo, Great Britain, Flamingo 2000 3- Clifton Rita, Simmons John, (2003), Brands and Branding, Great Britain, The Economist Association & Profile Books Ltd. 4- Sportleder L. Thomas, Goldsmith D. Peter, (2003), Product differentiation and market segmentation in grains and oilseeds Implications for industry in transition, Washington DC. 5- Crespi M. John, (1999), Generic Commodity Promotion and Product Differentiation, Annual Meeting of The American Agricultural Economics Association, Tennessee. 6- Tarnovskaya Veronika, Burt Steve, (2008), The Role of Corporate Branding in a market driving strategy, International Journal Of Retail & Distribution Management, 36 (11), 941-965. 7- Lewis Chris, Vickerstaff Angela, (2001), Beer Branding in British and Czech companies: a comparative study, Marketing Intelligence & Planning, 19 (5), 341-350. 8- Betts Peter, (1994), Brand Development-Commodity Markets and Manufacturer-Retailer Relationships, Marketing Intelligence & Planning, 12 (9), 18-23. 9- Copernicus, (2000), The Commoditization of Brands and Its implications for Marketers, Market Facts. 10- Krelle, W. (2000), Problems of transition from a planned to a market economy, Bonn Econ Discussion Papers, Bon, Bonn Graduate School of Economics 11- McKinley T. (2004), Macroeconomic policy in transition economies, UNDP Discussion Paper 12- http://www.imf.org/external/country/ALB/index.htm 13- INSTAT (2007), Results on structural survey of economic enterprises 14- Olim Company Archive
47

Master Thesis OLIM - Albania

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CONSULTANCY PROJECT

MBA Student UNYT

REJLA BOZDO May 2009

CONTENT Executive Summary

Suggested course of action Appendix Bibliography

1.3 Brand Development and Branding Strategy

2.2 Development of manufacturing industry in a transitional economy

3.2 General overview of the Albanian market, Segmentation

Market Shares 2007

25000 20000 15000 10000 5000 0 2000 2005 2006 2007

Differentiated brands of high quality perception Brand sensitive market

Differentiated brands of price competitiveness Price sensitive market

CRYSTAL FIOL BOMIRA BIMAL

Enova campaign ads:

Slogan: Gold winner sunflower oil: G for H

Advertising strategy used:

The results of this research are showed in the following charts:

Count 15.0 5.0 17.0 37.0

% of total 40.5 13.5 45.9 100.0

choose any of the local sunflower oil Brands

The impact of advertising on nonusers and on nonusers of local brands.

Count 2.0 1.0 2.0 8.0

% of total 5.7 2.9 5.7 22.9

choose any of the local sunflower oil Brands

7.1 7.1 14.3 64.3 7.1 100.0

brands of sunflower oil consider price as important as the quality that

this brand offers. This fact was communicated with superlative

comments from the interviewed knowing that people tend to

overvalue the quality of brands they choose.

Advertisers AM Group Floriol Fiol Am Group

Brands Olim Floriol Fiol Frito

Brands Olim Fiol Crystal Floriol Floryhen

Brands Fiol Floriol Olim Crystal Bomira Floryhen

Prime Time 19:00-23:00 % 15% 18% 40% 32% 13% 97%

Brands Crystal Fiol Floriol Olim Bomira

487 2951 562 1518 883

Brands Bomira Fiol Bimal Floriol Crystal Olim

Brands Bomira Crystal Olim Bimal

Brands Bomira Crystal Floriol Olim

Brands Bomira Crystal Floriol Fiol

Qual. Placem 1st or last % 83% 11% 0% 47%

Prime Time 19:00-23:00 % 37% 4% 26% 87%

2009 April Nr.of insertions

total No. 30" spots Cost Rate Cards Lek

Brand Category Advertisers Sunflower Oil Sunflower Oil Floriol Crystal

GRP Weekend avr ISO 2008 share No %

Qual. Placem 1st or last %

Prime Time 19:00-23:00 %

1.1 Optimized marketing budgets allocations (the case of OLIM)

Branded cars of Olim Company used for distribution purposes.

Wobblers used on the shelves to show the price

Posters of Olim on the entrance of a minimarket

Telephone number Place of interview

1- Are you the person that do the shopping in your family?

5- What is the quantity that you use in one month?______________________

8- Which is the brand you consider more qualitative?________________

Crystal Olim Bomira Floriol Fiol

9- To your opinion, what makes an oil brand, qualitative?____________________

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