Session 5: Marketing, Branding and Promotion

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Building Development Oriented Rural Enterprises
Training and Project Development Workshop
Session 5 Marketing, Branding and Promotion
Workshop Presentation
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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING ALIGNING BUSINESS
BRAND PROMOTION GROUP ACTIVITY
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DEFINITIONS OF MARKETING

• We got the onions to Bogota but we didnt know
  how to market them

Sales
Everything Except Production

• Coffee would grow very well in eastern
  Afghanistan, but how would you market it?

Promotion Advertising

• No one would buy such expensive clothes if it
  wasnt for their slick marketing

Customer-Focussed Strategy

• CHOOSING A KIND OF CUSTOMER AND FINE-TUNING THE
  BUSINESS TO SERVE THEM

Meaning of Marketing in this presentation
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MARKETING PROCESS
Align Business Brand
Select Customers
Position Brand
Promote

• Identify main customer groups
• Select customer groups

• Make strategy to differentiate from competitors
• Create brand

• Identify systems needed to maintain brand
• Implement systems needed to maintain brand

• Get message to target customers

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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING TUNE-UP PROMOTION GROUP ACTIVITY
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SELECTING TARGET CUSTOMERS
Understand Customer Characteristics
Group Customers
Select Customer

• Break customers into homogenous groups, e.g. by
• - Socioeconmics (high income, middle income)
• - Values or interests
• - Institutional types

• Understand characteristics of segments
• - What they buy, where they buy it, when they buy
  it
• - What capacity you would need to serve them
• Estimate profitability of serving them (use NPV
  if possible)

• Select customers with best balance of ease of
  implementation and NPV
• Select several groups of customers if there is
  good overlap

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TARGER SEGMENT PROFILING TOOL
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ECONOMIC ATTRACTIVENESS THEORY
1. Money in the future is worth less than money
now
1.2
1.2
1.2
1.2
(1..21.21.21.2) OR 1.24
2. To bring money from the future to present
value you can divide it by a number that reflects
the interest rate and the length of time
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ECONOMIC ATTRACTIVENESS APPLICATION
1. Make a financial forecast as far into the
future as you can
2. Work out the Present Value of the Free Cash
Flows
This number is the total value of the future
profits from serving the segment, adjusted for
time delay. The higher the number, the more
profitable, so this number measures (economic)
segment attractiveness
3. Add up the Present Value of the Free Cash
Flows
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CUSTOMER TARGETING TOOL
TARGET SEGMENTS
Low
Exporters
Hotels and international restaurants
Luxury food shoppers
Difficulty of Serving
Public school and hospital buyers
Middle income occasional luxury buyers
Low-income food shoppers
Government office buyers
High
-1000
9,000
4,000
Segment Attractiveness (Net Present Value)
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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING ALIGNING BUSINESS
BRAND PROMOTION GROUP ACTIVITY
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POSITIONING STRATEGIES

• Make your product basically the same as other
  products, accept whatever market share you can get

Imitation

• Make your product offer something genuinely new
  (e.g. combines several products in one)

Innovation

• Make your product seem different by emphasizing
  just a few aspects of it (e.g. emphasize health
  properties or environmental properties)

Differentiation

• Make your product attractive to particular kinds
  of consumers by explicitly targeting them (e.g.
  young people, professionals)

Niche

• Make your product notable because it is cheaper
  than other offerings

Cost
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CREATING THE BRAND

• Identify the objective benefits and the
  subjective benefits that the product will be seen
  as having by the target segment (its positioning)
  
• Create a simple phrase that expresses the
  essence of the brand and which is consistent with
  the positioning

Process

• Are the elements of the brand consistent?
• Is the positioning clear and understandable?
• Is the overall package attractive to target
  segments?

• Consistent and clear delivery in packing
  materials, labels, product characteristics, etc.
• Dont include inconsistent elements (e.g. luxury
  and low-cost)
• Clear understanding of the brand at all levels
  of organization

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BRAND PROFILER DOI KHAM
Subjective Attributes
Means I dont have to worry about pesticides
Lets me feel like a loyal Thai citizen
Slogan
Quality from the initiative of the King
Food Safety
Royal endorsement
Quality
Objective Attributes
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BRAND PROFILER PRODUCTS OF PEACE
Subjective Attributes
Lets me feel good about contributing to the
problems of my country
Slogan
Support farmers of Colombia to seed hope and
social responsibility
Food Safety
Eco-friendly
Quality
Objective Attributes
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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING ALIGNING BUSINESS
BRAND PROMOTION GROUP ACTIVITY
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ANALYZING BRAND PROMISES
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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING ALIGNING BUSINESS
BRAND PROMOTION GROUP ACTIVITY
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PROMOTION PRINCIPLES

• What promotional tool/device to choose?
• How to ensure reaching target customer and not
  wasting time and money reaching non-target
  customers
• How to get brand message across

Issues

• Start with customers first, identify how to
  contact them
• Ensure that key words, phrases and messages are
  consistent with brand
• Ensure that visual presentation is consistent
  with brand
• Measure performance if possible

Best Practices
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PROMOTION TYPES
Business Customers
Retail Customers

• Advertise in trade magazines
• Advertise in wholesale markets
• Advertise in phone books/Yellow Pages
• Provide samples
• Arrange buyer visits to farms and packing
  centres
• Provide brochures including description of Q.C.
  systems
• Use GoogleWords
• Participate in trade fairs and expos
• Register with databases of suppliers
• Conduct corporate hospitality
• Sponsor events relevant to business sector

• Advertise on radio, TV, local newspapers, etc
• Attract media coverage
• Hold Publicity events
• Get high-profile patrons/endorsement
• Run text-message campaigns
• Use price discounting
• Create in-store promotions
• Arrange cross-promotions

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DOCUMENT OVERVIEW
INTRODUCTION SEGMENTATION TARGETTING POSITIONING
BRANDING PROMOTION GROUP ACTIVITY
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GROUP ACTIVITY

• You will be given a case describing a new DORE,
  in which you have to
• Decide which segment to serve
• Create a brand
• Analyze the operational requirements of the
  brand
• Choose a set of promotional devices
• 1 or 2 groups will give a presentation of their
  work in the plenary session

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TASK 1. ESTIMATE SEGMENT NPVs
Export
Luxury Domestic
Low Cost Domestic
1. Use the financial data to work out the NPV of
serving the three different segments
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2 ESTIMATE DIFFICULTY OF IMPLEMENTATION
2. Estimate the difficulty of setting up
production and handling for the three different
customers
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3 SELECT TARGET
3. Plot customers on chart and choose one closes
to here!
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Difficulty of Serving
10
0
300
Segment NPV
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4 BRAND PROFILING
Subjective Attributes
Slogan
4. Design a brand with your target segment in mind
Objective Attributes
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5 OPERATIONAL ALIGNMENT
5. Identify your brand promises
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6 PLAN PROMOTION
6. Plan promotional devices, including how each
will reach target customer and how it will carry
brand message
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Thank You