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A Category Leader Comeback – EgyptPresentationAugust 2005
Introduction – Meeting Objectives
Overall Objective: To re-introduce the original Sensodyne brand in Egypt through a well integrated marketing plan
Meeting Objectives
•Introduction: To introduce Eva’s manufacturing strength and distribution muscle
•To familiarize audience with Egypt and its toothpaste market dynamics
•To address the counterfeit issue and agree a joint course of action to protect the GSK/ Eva territory
•To present Sensodyne’s relaunch plan and seek input and support regarding various elements
•To agree next steps and confirm timings
Ultimate Ethical product Distribution
Introduction - Overview
In Egypt, Eva is an established powerful personal care products manufacturer and distributor
Eva currently manufactures a wide portfolio (close to 200 SKU’s ) across skin, hair and dental care
Due to its outstanding quality standards, Eva has been selected as sole manufacturer for Sensodyne as well as a number of local quality- focussed companies
In 2003, Glaxo-SmithKline acquired Stafford Miller internationally resulting in a change of management
During 2004, the market was flooded with a poor quality counterfeit product manufactured in China, in addition to competitive brands such as Signal Sensitive, Emoform & Deprudent
This presentation will provide an overview of the market and proposed relaunch plan instigating a dialogue to agree a mutual action plan to support Sensodyne’s re-introduction
in Egypt
Eva Distribution Network – National Representation
Eva’s Distribution Muscle – Spreading across Egypt
Map Source: "The Financial Times World Desk Reference" © Dorling Kindersley 2004
Eva Cosmetics Office
Distribution Depot
Eva Cosmetics Labs – Covering Egypt Nationally
Eva’s Distribution Network consists of:
An extending number of offices – A total of 8 offices at national level
A powerful & modern distribution fleet – 40 Vehicles
322 dedicated employees working to grow and establish brands
A powerful sales operation consisting of 155 employees (sector managers, supervisors, sales reps & merchandisers)
Pharmacy coverage equivalent to the universe shown in AC Nielsen’s database – 23,000 pharmacies in total
Eva’s manufacturing facilities:
Pharmaceutical standards used in the manufacturing of consumer products
In –house R&D department
Eva Cosmetics Labs are committed to consumer health, satisfaction & safety
Profile of Egypt
Egypt Demographics - Basic Economic Indicators
Egypt/ Profile: Basic Economic Indicators Egypt: Developing Economy
Egypt - Map
Strengths
Oil and gas revenues
Well-developed tourist infrastructure
Remittances from Egyptians working throughout the region
Suez Canal tolls. Agricultural produce, especially cotton. Light industry and manufacturing. Planned gas pipeline to Lebanon..
Weaknesses
Tourism hit by "war on terrorism."
Dependence on imported technology
High birthrate
Rural poverty
Egypt’s Scorecard
World GNP Ranking: 37
Per Capita GNP: US$ 1,530
GDP: $99.6 bn
Economic Growth: 4.5% p.a.
Inflation Rate: 7.2%
Unemployment Rate: 12.0%
Source: "The Financial Times World Desk Reference" © Dorling Kindersley 2004
Egypt Demographics - Population Split Urban vs.. Rural
Demographic Profile of Egyptian Population
Population Distribution
In spite of the even split between urban and rural dwellers, 93% of the population is
concentrated in settlements along the River Nile
Cairo and Alex alone claim more than one third of the total population, leading to crowding and
continuous need for improvements in infrastructure
Rural dwellers often leave home to seek employment in urban areas
In an attempt to alleviate population pressure on traditional cities, the government has initiated
the Toshki project, aimed at creating a second valley parallel to the Nile Valley
Uneven distribution of Population
Egypt - Population split Urban vs.. Rural (%)
Urban42%
Rural58%
Egypt - Population split by Region (000s)and corresponding percentages
Population (2001) Population (%) Urban 29,193 42% Rural 39,455 58%
68,648
Source: CAPMAS 2004 population census
Egypt Demographics - Population Split by Region
Demographic Profile of Egyptian Population
The Delta valley is the area most dense in population. Largely rural it has through the
efforts of multinationals only recently become adequately covered
Greater Cairo and Alexandria represent the major city centres of Egypt. Government
authorities, universities and commerce was traditionally located
Upper Egypt (which represents 70% of Egypt’s territory) is under-populated and suffers from
poor road infrastructure
Sinai and the Red Sea have a thriving tourism and resort industry, which was badly hit in July ’05 by terrorist attacks.Population is involved in
activities directly related to tourism and/or related services
Population concentrated along the Nile
Egypt - Population split by Region (%)
Egypt - Population split by Region (000s)and corresponding percentages
Population (2004) Population (%) Greater Cairo 14,230 21 Alexandria 3,750 5.5 Delta 31,057 45 U/E 19,360 28 Sinai & Red Sea
244 2
68,648
Source: CAPMAS 2004 Population Census
Cairo21%
Alex5%
Delta44%
U/E28%
Other2%
Egypt Demographics - Population Split by SEC
Demographic Profile of Egyptian Population Egypt: Predominantly Poor
Egypt - Population split by SEC (%)
A Class3%
B Class4% C1 Class
14%
C2 Class18%
D Class28%
E Class33%
Population (2004 est.)
HH Income/m.
Class A : 2,059 (3%) 7000 Class B : 3,432 (4%) 3000
Class C1 : 9,611 (14%) 1500 Class C2 : 12,357 (18%) 700
Class D : 19,221 (28%) 500 Class E : 22,654 (33%) 150
Total : 68,648 Egypt - Population split by SEC (000s))
and corresponding income levels
Egypt is a developing country with a significant middle class (32%) while 61% of the population below the poverty line
Upper SEC’s (A&B) have access to imported products and satellite advertising while C1 SEC downwards have access to
local products
The government is undertaking a variety of programs to subsidise food, education, lodging and health services for limited-
income families
The economic gap between rich and poor is widening translated into a gradually
eroding middle class
Source: CAPMAS 2004 Population Census & Ac Nielsen HH income estimates
Egypt Demographics - Population Split by Age
Demographic Profile of Egyptian Population Egypt: Young population
Egypt - Population split by Age (%)
0-510%
'5-1012%
'10-1512%
'15-2011%
'20-3016%
'30-4018%
'40-5010%
50+11%
Egypt - Population split by Age (millions) and corresponding percentages
Source: estimate based on 96 CAPMAS population census & projected growth rates
Population (2001) Population (%) 0-6 7,879 11 6-10 8,801 13 10-15 9,047 13 15-20 8,051 12 20-30 10,961 16 30-40 9,036 13 40-50 6,772 10 50+ 8,100 12 Total 68,648
Population is growing at around 2% p.a
Birth rate is 26 per thousand
2025 Pop est.: 95.8 Million
An even Male/ female split
A young population is characteristic of Egypt - children & teenagers (45%) - due
to high birth and improved child mortality rates
Children are the single largest target group of the population, followed by young adults who constitute the second most important
target group
Egypt Geography - Retail Profile
Retail profile of Egypt
Pharmacies play a key role in the distribution of toothpaste especially specialized brands such
as Sensodyne. Eva covers 23,000 (95.8% of the total universe of pharmacies)
International supermarket chains started operating in Egypt at the end of 1999: Metro was closely followed by Sainsbury’s (Now
exited) and more recently Shop rite, Carrefour, Hyper One and soon Spinney’s.
Key accounts include discounter stores & semi-wholesalers - an important channel of
trade having traditionally offered the alternative to the expensive supermarkets
Haberdasheries are convenience stores carrying a small variety of food items as well as
stationery, gift items and personal products
The retail environment in Egypt is concentrated in Cairo/ Alex & the Delta
Retail: Varied in types and concentrated in regions
CAIRO ALEX DELTA UPPER RURAL
Key Acc. 501SQM+ 51 9 0 19 0 Pharmacies 8,700 2,500 9,500 3,100 24,000 S/M 101-500SQM 287 49 39 17 14 L Groc. 41-100SQM 877 267 203 33 61 M Groc. 21-40 SQM 3,487 1,108 1,181 743 1,340 S Groc. <20SQM 19,500 5,040 12,154 8,216 54,059 Kiosk 3,129 606 1,777 1,987 5,540 Haberdashery 4,796 2,697 1,637 1,159 2,921
TOTAL Key Acc. 501SQM+ 79 Pharmacies 24,000 S/M 101-500SQM 406 L Groc. 41-100SQM 1441 M Groc. 21-40 SQM 7850 S Groc. <20SQM 98,968 Kiosk 13,039 Haberdashery 13,210
Retail Outlets - Split by Outlet Type
Retail Outlets - Split by Region
Source: Amer/ AC Nielsen Retail Audit
The Toothpaste Market in Egypt
The Toothpaste Market in Egypt – Market Shares (Vol. & Val.)
Toothpaste Market Volume & Value Shares
*Egypt – Toothpaste Market Shares Volume & Value(%)
*Egypt – Toothpaste Volume & Value MAT J/F 2004
Source: AC Nielsen Retail Audit
MAT J/F 04 Volume 1000
MAT J/F 04 Value LE100’000
Toothpaste 1,459 828 Signal 815 440 Signal Sensitive
4 7
Close Up 271 151 Colgate 267 145 Sensodyne 17 37
55.9
0.3
18.6 18.3
1.2
53.1
0.818
.2 17.5
4.5
0
10
20
30
40
50
60
Volume
Signal T Signal S Close-Up Colgate Sensodyne
The toothpaste market is worth LE 82.8M
Signal Toothpaste is the clear market leader covering generic benefits as well as specific dental care needs (e.g. whitening,
sensitive teeth) Close Up is second followed closely by Colgate in 3rd position
The top 3 brands represent close to 90% of the market volume
With Signal and Close-Up, Unilever dominates the toothpaste market
The sensitive teeth segment represents less than 2% of the market share in volume shares but due to the high
premium pricing represents more than 5% of the market value
*Note: Data is shown in slide represents market status for the year ending 2003
(MAT J/F ’04). Retail audit subscription will be resumed shortly
Unilever dominates the toothpaste market
Value
The Toothpaste Market in Egypt – Signal Sensitive vs.. Sensodyne
Toothpaste Market Volume & Value Shares
*Egypt – Sensodyne vs. Signal Sensitive shares (Vol & Val %)
*Egypt – Sensodyne vs. Signal Sensitive shares (Vol & Val %)
Source: AC Nielsen Retail Audit
MAT J/F 04 Volume 1000
MAT J/F 04 Value LE100’000
Toothpaste 1,459 828 Signal Sensitive
4 7
Sensodyne 17 37
0.3
1.2
0.8
4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Volume
Signal S Sensodyne
Sensodyne continued to be the market leader of the Sensitive teeth segment
especially in value terms
There is a wide price share gap between Signal Sensitive and Sensodyne. Signal Sensitive large pack in particular offers
excellent VFM
Signal Sensitive media spend was LE 2.7MM Q1 ’05 (local TV & MBC2)
Sensodyne is at a significant premium to Signal Sensitive on a per ml basis
Sensodyne O/ M/ F/ BG 50ml: LE12.00 Sensodyne BS/ TC 50ml: LE 13.25
Signal Sensitive 50ml: LE 8.00
Sensodyne 75ml O/M/F/BG: LE 16.50 Sensodyne BS/TC 75ml: LE 18.00
Signal Sensitive 100ml: LE 15.00
Sensitive Teeth: a small premium sub-segment
Value
Sensodyne Historical Sales & Sales breakdown by SKU
Sensodyne Historical Sales & Pack split
Sensodyne Sales Volumes 2002-2004 (# Packs Sold)
Original, Mint and Sensodyne F 50ml are traditionally the highest selling SKU’s
Starting 2003, brand sales showed a 25% decline followed by a very poor sales
performance in 2004
2004 witnessed the complete withdrawal of Sensodyne from the Egyptian market
with figures shown reflecting 5-6 months of sales
Sensodyne’s historical monthly sales do not show seasonality
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2002 2003 2004
Original 50Original 75Mint 50Mint 75F 50F 75Baking Soda 50Baking Soda 75Barby 50Tartar Control 50Tartar Control 75Blue Gel 50Blue Gel 75
2002 2003 2004Original 50 76784 59836 5896Original 75 24712 21319 16619Mint 50 80774 56352 2541Mint 75 29422 25861 1200F 50 76273 37490 8655F 75 26963 19621 17972Baking Soda 50 38378 25759 38154Baking Soda 75 16107 13814 671Barby 50 7598 9096 7748Tartar Control 50 14748 16144 13584Tartar Control 75 9671 5827 1266Blue Gel 50 29646 24912 528Blue Gel 75 14495 11117 2666
Small Pack size, O/M/F fastest selling
Short Term Plans - Counterfeit Attack Plan
Counterfeit Status in Cairo & Alex
Updated Counterfeit Status
Counterfeit Stock take in 50 top selling outlets by branch Aug 2005 (# Packs)
The trade has been alerted and there are strong indicators of a positive response not to
purchase or stock counterfeit Sensodyne
Updated volumes of counterfeit product found in the 50 top Sensodyne selling outlets
each in Cairo, Alex, the Delta and U/E are equivalent to 2-3 months worth of sales taking
Sensodyne’s 2003 sales levels as a benchmark
Wholesalers (e.g. Moski downtown) have been traced as major traders in Counterfeit
Sensodyne
A recent trade check showed decreased stock volumes of counterfeit Sensodyne with the
Moski wholesalers
2-3 months worth of sales still in the market
Counterfeit Sensodyne (Units)
Cairo 14683Alex 2517
Sharkeyya 250Tanta 84Mansoura 1834Port Said 2984Asyut 555Luxor 234
0
2000
4000
6000
8000
10000
12000
14000
16000
No. of Units
Cairo
Alex
Delta
U/E
Counterfeit Stock take in 50 top selling outlets by region Aug 2005 (# Packs)
Counterfeit Attack Plan – Strategic Approach
Anti- Counterfeit Approach
Shortly before the launch, press and PR will be used to announce the cooperation of GSK &
Eva in re-introducing Sensodyne in Egypt
The press & PR campaign will fulfill 2 main roles:
1- Identify Eva as the manufacturer of original Sensodyne in Egypt to the consumer
2- Discourage the trade from stocking counterfeit Sensodyne
GSK:
Wholesale Trade Legal Action taken via the MOH & MOS against traders stocking the
counterfeit product will discourage counterfeit stocking
Controlling the influx of counterfeits at source will help clean up the market in preparation for
the re-introduction of Original Sensodyne
An integrated Marketing Relaunch Plan
Sensodyne
Counterfeit Attack Plan
Trade PR
Source
Medium Term Plans - Relaunch Plan
Sensodyne Relaunch Plan – Strategic Approach
Relaunch Strategy
To re-introduce Sensodyne strongly into the Egyptian Market, the relaunch plan will use a
three pronged approach
Communication arm targeted to the dentist whose confidence in the brand needs to be
restored via ethical detailing
Communication and incentives aimed at the pharmacist to recommend Sensodyne as the
solution for sensitive teeth
Communication aimed at the consumer to refresh existing/ create increased awareness to
generate trial for the original Sensodyne
The marketing plan should be integrated with appropriate phasing to generate the overall effect of re-establishing the brand as market
leader of the sensitive teeth segment
An integrated Marketing Relaunch Plan
Pharmacist
Consumer
Dentist
Sensodyne Marketing
Relaunch Strategy
Sensodyne Relaunch Plan – Dentists
Relaunch Strategy - Dentists
A plan of detailing visits to opinion leading dentists will be conducted to announce the re-
introduction of original Sensodyne to the Egyptian market
Targeted marketing materials will be developed for the dentist such as prescription pads,
branded yearly calendars, branded pens as well as product samples
To re-establish Sensodyne, a participation in upcoming dental conferences will be initiated
(1st upcoming conference: Nov 2005)
A rotation of visits for each dentist will be used to continuously sustain a top of mind position
GSK: Ethical detailing material containing medical updates in the field of sensitive teeth will be used a leave-behind for the dentists
Sensodyne’s Dentists Relaunch Program
Pharmacist
Consumer
Dentist
Dentist Ethical
Detailing
Sensodyne Relaunch Plan – Pharmacists
Relaunch Strategy
POS material (Posters,& danglers) designed specifically for the Pharmacies will be used &
distributed along with the relaunch sales volumes
Branded stands will be given to key pharmacies based on size of relaunch order for increased
in-store visibility
For small size pharmacies with limited floor space, shelf counter stands will be used to
attract consumer attention upon entering the pharmacy
An initial one shot trade loading promotion will prepare the trade for the onset of the consumer
pull to be generated through TV advertising
GSK: Key visuals taken from existing ad campaigns can be used for the production of
POS material
Sensodyne’s pharmacists’ relaunch plan
Pharmacist
Consumer
Dentist
Pharmacists Retail
Program
Sensodyne Relaunch Plan – Consumers
Relaunch Strategy
To re-introduce Sensodyne strongly into the Egyptian Market, 3 bursts (annually) of TV
advertising will be used to announce the return of original Sensodyne
FM Radio will also be used as it is becoming a highly effective and well targeted AB SEC
medium
Shelf visibility in key accounts with eye level positioning & POS material will complement the
integrated plan
GSK: If available, new ATL TV & Radio content will help generate increased interest,
memorability and trial
Sensodyne’s Consumer relaunch plan
Pharmacist
Consumer
Dentist
Sensodyne Marketing
Relaunch Strategy
Sensodyne Integrated Marketing Plan
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
A (&20% of B) Class Dentist Program/
Coverage
200 200 200 200 100N 100 N 100 N 100 N 100N 100 N 100N 100 N 1600
Repeat Visits 100R 100 R 100 R 100R 100R 100 R 100R 100R 800
Materials
Giveaway Kit (Pads, Pens, Calendars)
200 200 200 200 100 100 100 100 100 100 100 100 1600
Medical Updates (Issue No.1)
200 200 200 200 100 100 100 100 100 100 100 100 1600
Medical Updates (Issue No.2+) + Pads
100 100 100 100 100 100 100 100 800
Pharmacies Program/ Coverage
2000 2000 1000 1000 1000 1000 1000 1000 1000 1000 1000 13,000
Floor Stands 200 200 200 600
Counter Top Units 1000 1000 1000 500 500 500 500 500 500 500 6500
POS (Posters/ Danglers 2000 2000 2000 1000 1000 1000 1000 1000 1000 1000 13000
Consumer Program
TV Advertising
Radio Advertising
Key Acc Visibility 60 20 80
Activity
: Launch
Next Steps
Let’s now discuss what our next steps should be in terms of:
Short term plans & Actions Q3/ 2005
Medium term plans & Actions Q4- Q1/ 2006
Long term plans & Actions > Q2 2006