Choppies Rebranding
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Transcript of Choppies Rebranding
Marketing CommunicationsREBRANDING CHOPPIES SUPERMARKET RETAIL CHAINDennis Tlaang2B5060
Brand StoryProblem:
Lower to middle-income consumers segment living in rural areas were ignored (under-serviced market) by supermarkets chains and perceived to be unprofitable
o Traditionally rural settlements (often dispersed settlements)o small number of people living in themo served mainly by small general dealers
What was the solution• Establishment of stores in rural locations servicing the previously under-serviced market
o Aggressive rural penetrationo The wide spread of its stores established a lingering memory of its brando Brand familiarity (a strong factor in pushing sales)
• 1986 Family business with a single store in a small town (First supermarket)• 1991 Struggling financially• 1992 Hired a Chartered Accountant (Ramachandran Ottapathu) • 1993 Opened second store (Lobatse)• 1999 Opens first Choppies branded superstore (in Capital city of Botswana)• 2003 Choppies opens first Hyperstore• 2004 Choppies acquires Chathley, Food Mart and MultiSave• Exponential growth.. largest supermarket chain in the country 192 stores in 6 countries
How was the solution achieved?• Right products (sold full range of popular quality FMCG products at affordable prices)• Right target marketo value-conscious lower to middle-income consumers (LSM3 – 6) o cash, small basket size, daily (therefore high frequency) shoppers
• Right location of stores and opening hourso Convenience
• Favorable market conditions• Right price (low prices)• Right strategy (farmer to shelf)
o Vertical integration
Brand MissionTo be the best service provider of FMCG in sub Saharan Africa
How:
• Being a strong responsive provider of consumer goods at affordable prices • Giving customers the best value for their money • Bringing products to urban, semi-urban and rural areas • Generating sustainable economic development by supporting local businesses and farmers and value creation in
society • Creating new jobs, ensuring proper skills transfer to the local workforce and developing all employees to their
highest potential
How does it change/enrich people’s lives? • Consistently lowest prices (Strength in numbers )
o Economies of scale enabling Choppies to deliver best value for money for consumers o Attractive ranges of popular items at value-for-money priceso Reverse logistics” principle – focuses on lowest pricing to end-users
• High Rural penetration numbers (ignored segment)o Wide spread stores nationwide
• Choppies simply cut through consumers’ heavy costs (transport)o Stores close to commuter and residential nodeso Excellent logistics with in-house distribution and centralised warehousingo Vertically integrated
• It generates economic activityo creation of jobs > purchasing power > increased consumption
Current brand Image & associations
hyperstoressuperstores
value store
Private labels
Poor salary pay
Immigrants
Corruption
Poor people
Expired goods
greed
Political bribery
Former presidentof Botswana
Former Botswana Ambassador
to India
Current Presidentof Botswana
Vice Presidentof Zimbabwe &
Former Ambassador to Botswana
Local brand
profitable Low prices
Convenient Store locations
Fastest growing retail
unhygienic
Product qualityunstable
JohannesburgStock Exchange
BotswanaStock Exchange
Exciting offers
Farouk Ismail
RamachandranOttapathu
Brand situation Current problem
Aggressive cost cutting measures at the expense of health and safety
Corruption, Bribery
Management perceived as being greedy
Very secretive
Low salary pay
Lack of brand trust
Not open to discussion
Proposed solution
Improve brand perception Establish trust and good image
Professional look and feel Establish good governing policies
Be more transparent Invest in its people
The brand needs to be lived internal Establish consumer, employee and
stakeholder trust
Consumer insights: Problem
◦ Accused of selling expired foods (several reports)◦ Accused of changing expiry dates (management claims - printing error)◦ Accused of selling contaminated bottled water◦ Accused of buying political influence (Political scandals with the ruling party)◦ Accused of exploiting workers
What is changing? ◦ Consumer behavior shift: attracting upper-middle income customer segment◦ Company expansion◦ Global competitive landscape◦ Regulations
What is the thing that you think the brand or all the other brands (even sometimes customers) do not realize about the category?◦ Low price does NOT automatically always mean low quality◦ Private labels are the same products purchased from international brand packaged competing products instore◦ Brands need to understand that competing on price does not need to come at the expense of employees or the health and safety of customers◦ The brand experiences over 4.5million store visits in just a single month, its challenging to always keep it clean◦ Keeping costs low in downward economic trends, means aggressive cost cuttings and keeping fixed costs very low
Brand Pyramid:
Grocery and general merchandise retail chain Most preferred home brand of choice
Convenient store locations accessAffordable prices, good qualityEfficient service
EconomicalSatisfactionFamiliarity
Consistence low pricesReliable service
Wide range of products
Open longer hoursAffordable pricing
Ease of reachTop of mind
Loyal customersSense of community
Positive perception, trustworthy
Resonance
Judgements Feelings
Performance Imagery
Salience
Overall Brand Strategy: Values
◦ Integrity◦ Independence◦ Responsibility◦ Accountability◦ fairness and transparency
Mission◦ To be the best service provider of FMCG in Sub-Saharan Africa
Vision◦ Be a strong responsive provider of consumer goods at affordable prices◦ Give customers the best value for their money◦ Bring products to semi- urban and rural areas◦ Generate sustainable economic development by supporting local businesses & farmers and core value creation in the society◦ Create new jobs and develop all employees to their highest potential and ensure proper skills transfer to the local workforce◦ The brand is growing at an exponential rate (its very challenging for each store to keep up with consistency)
Brand Positioning: Key differentiation: ➔ Consistently lowest prices
➔ Stores close to commuter and residential nodes
➔ Attractive ranges of popular items at value-for-money prices
➔ Vertically integrated
➔ Excellent logistics with in-house distribution and centralised warehousing
“➔ Reverse logistics” principle (lowest pricing to end-users)
➔ Economies of scale (enabling delivery of best value for money)
Why should people buy the brand but not any other brand? • best value for money (farm to shelf)• convenience
PODs• Shareholder value • Job creation • Serving underserviced semi-urban and rural areas • Supporting local suppliers and landlords • Economic upliftment • Socioeconomic development • Investment in Africa • Value for money
BrandBRAND PROMISE
To bring goods closer to the communities at an
affordable price (keep costs as low as possible)
BRAND ARCHETYPE #11
The Regular Guy/Girl
(the everyman)Mr Jones:
• transactional and routine experience• Familiarity
The Neighbor:• ritualistic experience• sense of community and neighborhood
The Last Minute Shopper:• grab milk on your way home• on a mission (in and out)
Brand Logo & Colors:
Green: Natural, Healthy, vitality, peaceful
Red: Passionate, Vibrant, Stimulating
Blue: Trust worthy, Secure
White: Pure, Innocent, Practical
look and feel: looks like a rigid shaped flag with too many elements. Too colourful
Metaphors: rasor sharp cut flag structure
Red: action and energy, and arouse hunger
White: Pure, Practical
Blue: Trustworthy, Reliable
logo associations: reliable, effciency
look and feel: sets the standard for a bargain shopping. The sans serif font is clean and simple, suggesting Choppies will help you complete your shopping objectives.
Metaphors: dashing trolley > bargains
Current New
Brand slogan:
Current slogan:
Value for your money
New slogan:
Save money, enjoy everyday life
Brand Target:Current brand target:
LSM 3-6• Lower to middle-income sectors of Society
Value-conscious lower to middle-income consumers that are cash, small basket size, daily (therefore high frequency) shoppers
• Consumers have basic household appliances• have more money to spend on the things they
want as opposed to need. • however, still in the lower income brackets
New brand target:
Hyperstores: LSM 7• Attract more affluent consumers demanding
greater variety
Superstores: LSM 3-6• Keep lower to middle-income consumers
Value stores: LSM 1-2• Target retail consumers in lower income
brackets
Branding activities Convenience and efficiency:• Store layout and design: Better grid layout (achieve optimal shelf space)• Better planogram: Ease restocking and visual attractiveness• Visual merchandising: Use of lifestyle everyday images to create an exciting mood• Better Space management: Space productivity, Inventory turnover, location of departments, efficient
parking zones• Use of speed bumpers and better decompression Zones• Fast Proficient trained POS counter operators for fast payment processing• Use of red, blue, gray, white on buildings to send the message to customers that the store's inventory is
of good quality, will satisfy their hunger, and is reasonably priced
Branding activities New messages: Focus on bargains
New campaigns:• Numbers campaign• Emphasize savings, discounts and prices
Sub-brands:• Hyperstore• Valuestore• Superstore
Create Private-brands
Spokesperson: vibrant, energetic, transparent
Jingle: Choppies…. Save money... Enjoy everday life...Lala lala laaaaaa
Brand story: Build an image of trust
Brand management team to be set up
Brand tradition: Giving back to the community Endorsements: Seek for fastest service endorsementPricing: economy brandLean management systems to be put in place
Internal branding: Internal branding training and management team to monitor and manage the brand
Image and perception of employees: See employees as assets, invest in employee training and reward employees
Social brand: Support for local suppliers and local businessesSponsorships: focus on grassroots development activities
Charity activities: Donate to the vulnerable and disadvantaged groups, offer a full year groceries, donate food to schools.
PR activities: Collaboration with local communities, organizations on improving livelihoods of the community
Thank you