Marketing

Turnaround

Transformers
Agenda

Fonterra Brands Lanka

Malted milk industry

Market performance

Issues in the Marketing Mix

Recommendations

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Fonterra Brands Lanka

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 Fully owned subsidiary of Second level
Fonterra Corporative Group ● Third level
(New Zealand) ● Fourth level

● Fifth level

 Presence since 1975

 Dairy products market

 Market share = 52%

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Fonterra Brands Lanka

Product Range

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Malted milk industry

H
Market Leader: Nestomalt
●

o
r
l
i
c
k
Segmentation strategy : s

undifferentiated mass ● B
o
marketing u
r
Po
n
v
i
w
t erN
General usage: mixed a ●

Mes
with full cream milk alto
powder / morning ● V t ma
i
v l
a t 55

Price: Higher than milk

PowerMalt Performance

Fonterra identified the growth potential in

malted milk segment

The malted milk market was reactivated with

the introduction of PowerMalt
Power Malt Net Revenue
12

10

Rs '000 6

2
66
0
Issues in the Marketing Mix -
Product

Differentiation/Unique selling
proposition 
Representative product sampling 
Packaging and branding 
Creating a need gap 
PowerMalt failed to capitalize on the created
need gap due to poor promotions

77
Nestomalt seized the opportunity
Issues in the Marketing Mix -
Product

Positioning map
Pric
e
Hig
h

Power
Malt

Everyday Nutritio Frequen

use nal cy of
Drink use

Nestom
alt

Nesto
malt
88
Low
Issues in the Marketing Mix – Price &
Place

Product line pricing strategy

Premium price

Nestomalt reaction: A further price reduction

Synergistic advantages of Anchor Distribution

Channels
99

Maximum use of Push strategy

Issues in the Marketing Mix -
Promotion

 PowerMalt TV commercial

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Second level
● Third level

● Fourth level

● Fifth level

10
10
Issues in the Marketing Mix -
Promotion

 Nestomalt TV commercial

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Second level
● Third level

● Fourth level

● Fifth level

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11
Issues in the Marketing Mix -
Promotion
PowerMalt Nestomalt

ATL
Attractive TV Commercials  
Background & the setting  
Celebrity endorsement  
Integrated marketing (jingles/colours)  
BTL
Market activations  
Billboards, hoardings, posters &
cutouts  
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Recommendations - Product

Market survey in a diversified geographical

area
A unique selling proposition
Flavour
Non-fat malt drink
Total Value Chain Support (Internal Marketing)
Different SKUs
Same brand name with a different tag line
Differentiation within the category 13
13
Ready to drink packs
Recommendations - Price

Caution with a market penetration pricing

strategy
Consumer misinterpretation on the quality
Price war
Negative impact on Anchor

Best option: Competitive pricing strategy

Different SKUs will cater different economic 14

14
segments
Recommendations - Place

Push strategy
Create a competitive advantage on the
existing distribution channels
Attractive dealer margins
Internal incentive scheme for the sales force
Dedicated prominent shelf spaces at super
markets
Open special outlets close to schools and other
educational institutions
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Ready to drink packs: Channeled through other 15
companies’ cafeterias
Recommendations - Promotion

Advertising
AIDA model
Appealing and popular local celebrity
Create a unique jingle
Have more people visible in TV commercials to
communicate the mass appealing
Link TV advertisements with the time
reminders
Appoint a brand ambassador 16
16
Recommendations - Promotion

Sales promotion
Sampling programmes at schools and garment
factories
Delegated medical team to create an opinion of the
product through medical practitioners

PR & Profile Strategy

Sponsor sport events like cricket and rugby
tournaments at school level

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Q&A

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Thank You

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