Choppies Rebranding

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Marketing Communications REBRANDING CHOPPIES SUPERMARKET RETAIL CHAIN Dennis Tlaang 2B5060

Transcript of Choppies Rebranding

Page 1: Choppies Rebranding

Marketing CommunicationsREBRANDING CHOPPIES SUPERMARKET RETAIL CHAINDennis Tlaang2B5060

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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

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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

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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

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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

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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

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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

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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

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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

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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)

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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

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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)

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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

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Brand slogan:

Current slogan:

Value for your money

New slogan:

Save money, enjoy everyday life

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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

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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

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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

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Thank you