Company Background

Pahtama Group Co., Ltd was established in 1997 and it is one of the largest and fastest growing

distribution companies in Myanmar FMCG industry. We have delivered the qualified products

throughout the nationwide. The company have over 40,000 accounts which are covered by

1500+ employees. We distributed our products in both Modern Trade, General Trade and

Ecommerce channel. We are also providing Marketing services for both ATL and BTL

marketing activities We are now distributing Ensure and Glucerna for adult nutrition and Similac

and PediaSure for Child Nutriton.

Vision

To be No.1 Distribution company in Myanmar while providing Best Quality Products for

Myanmar People Nutrition to support their quality of life.

Mission

To provide daily needs for nutrition, hygiene, food, and personal care with products that will

help people for their better and healthier lifestyle.

Key Competitors

Unilever, Nestle, Mega and City Holding Companies are key main competitors of Pahtama

Group Co., Ltd.

Executive Summary

Due to too many competitors are entering to the Child Nutrition Category, PediaSure market

share declined in 2020 while in market sales and category is still growing. According to BCG

matrix analysis, PediaSure is under Question mark stage and that is why we plan to launch ‘’
Drink Three Glasses of PediaSure, Grow 50% Faster’’ campaign in TVC, Digital and Trade

Visibility and Consumer Promotion with below objectives.

2021 Marketing Objective of PediaSure

• To drive market penetration by increasing consumption frequency of PediaSure to

increase Market Share

• To educate consumers about the product benefits

• To increase whole country sales up to 20% growth

For this campaign, we would like to use total 398,000 USD and we expect to get 20% sales

growth with 65% sales value share in child nutrition supplement category. We also expect to

have 7% ROI to run this campaign.

About PediaSure

PediaSure is the child nutrition supplement and positioning itself as a catch-up growth product.

The communication behind the growth story of PediaSure was mainly focused on (1) Lagging

growth behind peers/ standards, (2) Picky Eating habits and (3) frequent illness. We have

launched new formula of PediaSure “MRI” in March 2020 in aiming to dial-up growth

proposition We are currently using communication material which is called “Photoshoot

Campaign” with catch-up growth message. The price is a little higher than other competitors in

the market. PediaSure is distributed in GT, MT and ecommerce channel.

Market Segmentation

There will be different typed of customers, products and needs and so we should analyze which

segments provide the best opportunities. As we should know well about our market, we have
segmented the market of PediaSure by demographic, geographic, psychographic, and behavioral

point of view.

(1) Demographic:

Demographically, there will be 25 to 45 years old mothers and fathers, having the kids of 1 to 10

years old, live in urban region.

(2) Geographic Segmentation

Secondly in geographically, it will be whole country of Myanmar and 50% of total PediaSure

Sales has contributed by Yangon and Mandalay region.

(3) Psychographics Segmentation

We have segmented PediaSure as per psychographic perspective point of view as below.

• Parents who are worrying about their children’s growth and development

• Parents who are worrying that the picky eating behaviors of their children

• Parents who are worrying that their child is getting sick easily

Behavioral Segmentation

In behavioral point of view, there will be current users and non-users in other category like

healthy food drinks (Ovaltine, Milo, etc.).

Target Market

In PediaSure target market, there will be 25-45 years old parents with 1 to 10 years old kids

living in urban area. We are mainly targeting to (SEC) A, B and B+ parents.

Differentiation

We have differentiated PediaSure with catch-up growth message and support the children with

50% faster growth vs peers.

Brand Proposition

PediaSure helps the children to reach their full growth potential and provide the best option to

moms for her child’s superior growth.

Competitor Profile

There are many new entries in premium segment of child nutrition supplement with high

competition. Among them, PediaSure is the market leader and main competitor is Dumex

Supergold.

Dumex Supergold

Dumex Supergold is the no.1 main competitor premium brand of Danone and Market Share is

30% value share in total child nutrition supplement category. And it has 88% price index with

PediaSure. They have own Facebook page (Dumex Supergold Kids Club Myanmar) with 3.7k

followers. Dumex Supergold is distributed throughout the whole country by DKSH and so their

distribution is quiet strong among other competitors. They have quarterly promotions with FOC

gifts and one big lucky draw campaign for both General Trade and Modern Trade Channel in

2020. They have done strong marketing activities in both ATL and BTL in this year.

Market Situation of PediaSure

Strength
PediaSure is the No.1 Brand recommended by Pediatricians in US, and includes Arginine and

Natural Vitamin K2, a unique formula to support 50% faster growth vs peers. It is manufactured

from world’s leading pharmaceutical company, Abbott while most of our competitors are from

Dairy based companies. Moreover, PediaSure has numbers of research and clinical studies to

support all claims.

Weakness

Target market is limited only ABB+. The price is expensive and needed only by picky eating,

malnourished, sickly children. According to U&A study conducted in 2019, consumers do not

know well about the benefits of PediaSure According to internal CRM team survey, only 16% of

PediaSure users has right consumption frequency.

Opportunities

According to 2019 U&A study, children under 5 years are facing growth issues. 29% of children

in Myanmar are stunted. PediaSure is the only clinically proven child nutrition supplement to

provide 50% faster growth. Economy is growing, assuming more ABB+ people. Most of the

Myanmar people are active in digital media and have opportunity to advertise the brand in digital

media.

Threat

67% of child nutrition supplement category users switch to Healthy Food Drink like Ovaltine

and Milo after 2 years old. Many new entries are coming in premium segment. Main competitor,

Dumex SuperGold, is also strong in distribution, promotion, and marketing.

Marketing Share & In Market Sales of PediaSure

As of YTD Dec’20 Retail Audit Report, PediaSure market share has 50%value market share in

total Child Nutrition Supplement Category and it is about 10% declined in market share if we

compared with 2019 market share. But in market sales data, it has 20% growth vs 2019 and

category is also growing. In 2020, PediaSure is communicated with Catch-up growth message to

targeted consumers via ATL and BTL marketing activities. The price is 42000 ks for PediaSure

850g and 21000 for PediaSure 400g. It is distributed throughout the whole country in General

Trade, Modern Trade, and Ecommerce. PediaSure has launched new and has nationwide

consumer price off promotion quarterly. There were also special display program in key outlets.

Brand Issues

Due to too many competitors are entering to the Child Nutrition Category, PediaSure market

share declined in 2020 while in market sales and category is still growing. According to BCG

matrix analysis, PediaSure is under Question mark stage and that is why we need to think about

more effective marketing strategy to build into Star stage. Below is the BCG analysis of Pahtama

Group SBUs.
High

Star Question Mark

Market Growth Rate

Ensure PediaSure
Low

Cash Cow Dog

Similac Glucerna

High Low
Relative Market Share
Almost all existing and new competitors are strongly active in digital channel as most of the

consumers are using digital media in free time. But we are not yet present in digital channel and

so we should try to be present at digital media like Google, YouTube, Facebook, Tik Tok, and
Instagram, etc. The main channel that we have dropped market share is in Modern Trade

channel. Only 16% of PediaSure users has the right consumption frequency (5 scoops – 3 times a

day) and 70% of the PediaSure users are consuming only 1 time per day. So, we need to educate

right consumption frequency of PediaSure to drive the market share. Moreover, consumers do

not well about the product benefits.

2021 Marketing Objective of PediaSure

• To drive market penetration by increasing consumption frequency

• To educate consumers on Arginine & Natural Vitamin K2

• Drive Top of Mind awareness of PediaSure by highlighting the product benefits

• To increase whole country sales up to 20% growth

2021 Action Plan of PediaSure

As I have mentioned in above, PediaSure has declined in market share while the category is

growing, we need to drive the market share by increasing marketing penetration and we will plan

to achieve to increase market penetration by (1) increasing consumption frequency and (2)

driving massive awareness of 50% faster growth and (3) educating the product benefits of main

ingredients (Arginine and Natural Vitamin K2). Therefore, we are now planning to do ‘’ Drink

Three Glass of PediaSure, Grow 50% Faster’’ campaign in Q2 of 2021 through ATL and BTL

activities.

(1) ATL Marketing Activities

(a) TVC
We will produce new ‘’ Drink Three Glasses of PediaSure, Grow 50% Faster’’ TVC and

highlight the consumption frequency in that TVC and plan the media budget mainly in the

program that are mainly targeting to our consumers. By this TVC, we will educate our

consumers to drink PediaSure 3 times per day to achieve 50% faster growth and we will explain

the benefits of arginine and natural vitamin K2. We will air this new TVC throughout the Q2 of

2021.

(b) Digital (Facebook Digital Campaign)

As our target consumers are very active in digital channel especially in Facebook, we will launch

our new Facebook Page of ‘’ PediaSure Myanmar’ in Jan;2021. Through this Facebook page, we

will plan to upload about PediaSure, Product benefits of PediaSure, knowledge about child

nutrition and parenting tips. By this way, we will try to increase our fan base of PediaSure and

then we will plan to launch ‘’ Drink Three Glasses of PediaSure, Grow 50% Faster’’ campaign

in digital as well. Campaign period will be in Q2 and in this campaign, mothers with 1 to 10

years old children need to upload 3 photos of PediaSure Drinking Photo at breakfast, lunch, and

dinner time with the hashtag # DrinkThreeGlassesofPediaSure #Grow50%Faster. And they have

to send these photos to our campaign post of our Facebook page. To get more awareness and

more participants, we will use KOL cele moms and mom bloggers in that campaign. We will

repost all participants’ photo at our FB page and participants will need to share to get highest

likes and shares. The highest likes and shares winner will get ‘’. We will also do 3 lucky draw

winners from all participants and give PediaSure Height and Weight Scales.

Trade Visibility Campaign

Since PediaSure market share is mainly dropped in MT channel, we will try to increase visibility

of PediaSure at MT channels with LED Point of Sales banner and Cross Merchandising Banner

in key MT outlets. The period will be Q1 and material will be with ‘’ Drink Three Glass of

PediaSure, Grow 50% Faster’’ message. In this LED, we will show our new ‘’ Drink Three

Glass of PediaSure, Grow 50% Faster’’ TVC as well.

Nationwide Promotion

Moreover, to drive more sales during the campaign period, we will run consumer FOC gift

promotion with ‘’PediaSure Mug’’ and there will be ‘’ Drink Three Glass of PediaSure, Grow

50% Faster’’ tagline in this mug. When our consumers drink PediaSure, they will see this tagline

and never miss to drink 3 times a day. Promotion Period will be in Feb and March throughout the

whole country in both Modern Trade and General Trade. During this promotion period, we will

also increase the visibility with ’’ Drink Three Glass of PediaSure, Grow 50% Faster’’ Gondola

Display, PP Board and Dangler.

Budget and Control

For’’ Drink Three Glass of PediaSure, Grow 50% Faster’’ campaign, we would like to use total

398,000 USD and we expect to get 20% sales growth with 65% sales value share in child

nutrition supplement category. As per below calculation, we expect to have 7% ROI to run this

campaign.

1. TVC - 219,000 USD

2. Digital Campaign - 33,000 USD

3. Trade Visibility - 6,000 USD

4. Nationwide Promotion -140,000 USD

Total Expense - 398,000 USD

Target Sales Amount -5,637,950 USD

Sales Growth vs 2019 - 4,510,360 USD in 2019 vs 5,637,950 USD in 2020 (20% sales

growth)

ROI - 7%

Conclusion

As per mentioned in aboved, PediaSure market share declined in 2020 while in market sales and

category is still growing, and under Question mark stage according to BCG matrix. Therefore,

we plan to launch ‘’ Drink Three Glasses of PediaSure, Grow 50% Faster’’ campaign in TVC,

Digital and Trade Visibility and Consumer Promotion with below objectives. From this

campaign, we expect to get 20% sales growth with 65% sales value share in child nutrition

supplement category and also expect to have 7% ROI to run this campaign.