oe iE White Star: A new ra R MauzE brand goes big THE/CLEVER CHOICE Astar is born n 1997, Sasko Milling and Baking did not enjoy a strong position in the super maize ‘meal market. In the past, wheat products had been their primary market. Given this and the notoriously high levels of brand loyalty amongst maize meal consumers, their decision to launch a competitive super maize meal brand in the late 1990s appears to be risky beyond reason. ‘What then motivated this decision? Making it through the maize haze Danie Bower argues that the maize market is one of the most competitive product categories in the food industry.’ The following factors interact to make this market an increasingly tough one in which to compete: + Consumers have low levels of disposable income. The opportunity cost of pur- chasing the wrong brand is high. + Given the above, consumers are extremely quality conscious. + Brand loyalty is strong and consumers are often resistant to change. + The production process is highly fragmented as one brand is produced at a num- ber of different plants in different regions. + Several strong brands already compete in the market. + Distribution costs are high. + ‘The trade holds significant power and is able to negotiate low margins and high volumes from manufacturers. + In addition, it is a price-sensitive market and there is litde room to manoeuvre ‘when production or distribution costs escalate. ‘The maize marketis also deceptively complex, as it comprises four different subeat- egories of maize meal (see Figure 8.1). There is some cross-usage between these sub- categories, but in most cases consumer preference, cost differentials or the intended tise of the product will determine which subcategory of maize meal is purchased. GSS) 113CASE STUDIES Figure 8.1 The different lypes of maize meal within the maize meal category “The maize meal market varies distinctly from one region to the next. Brands that, are within the top five performers in one province are virtually unknown, or alto , gether unavailable, in the next. In many instances this is a product of the distribu : Son chain, as the brand presence tends to centre on the local mills, which manufac- qure and supply the maize meal in each region. Prior to the launch of White Star, only two brands, Ace and Iwisa, held a strong position ona national scale, “The regionality of market share in this category also reflects the diversity of the South African consumer culture. Maize meal isan integral part of consumers’ family life, and maize meal brands tend to draw on iconography and imagery ‘that relaté strongly 10 @ particular culture or subculture. It follows, then, that what appeals strongly in one corner of South Africa will not necessarily be as appealing or relevant in another: : A staple requirement i ‘On assessing their position within the category, Sasko Milling and Baking identified several challenges facing them in the maize market. To succeed in a staple foods caf: gory it is necessary to hold at least a 20% share of that market This requires signi Cant production capacity, and the ability to ensure consistent quality standards Contrued and consistent support from the marketing department in the form @ media spend, continued research and development are key prerequisites for suc: 114 (meat msWHITE STAR: A NEW SRAND GOES BIG cass. ts also vital to maintain the motivation ofthe sales teams who drive the prod- Seronto the shelves where, ultimately, consumers make their purchase decisions to 1998 Sasko were leaders in the special maize meal category with four of their brands collectively holding a substantial portion of market share, However, in the super maize meal category Sasko had only 2% mazket share ie puder to remain competitive it was clear that Sasko needed to increase their super maize meal production capacity It made sense to grow a single brand with Shong national presence, rather than the numerous regional brands already in they Seppe, This would enable them to ratfonalise their brand portfolio, asa single brand is easier to support. Tin the early 1090s Bokomo and Sasko merged to form Pioneer Foods. By purchas- ing Tongeat Mills and Amaize Co. they were able to attain the additional facities that were required to increase their production capacity. Man cannot live by bread alone sasko Milling and Baking recognised that there was a trend of inereasing demand for snaine meal, as bread was becoming prohibitively expensive for many consumers in the lower LSMs? Within the maize market an opportunity existed to capitalise on the yeoent growth in the “super” category versus the other types of maize meal. More- ver, super maize meal offers significantly better profit margins than the other 'ypes ofmaize meal! Sasko Milling and Baking decided to invest further in the super maize meal cate gory and took a strategic leap of faith in launching the White Star brand of super atve meal, Tt was their objective to establish White Star as a successful national brand and, within two years of launch, rank at Teast within the top five maize brands? Thus began a battle to win market share from two very strong and estab- lished maize meal brands. Milling it over How does one prepare for a brand battle ofthis scale? The answer is = very carefully, with meticulous and thorough consumer research, product evaluation and plan: ning, remembering at every step that in order to meet consumer needs, one must know exactly what itis they desire. In developing White Star, Sasko Milling and Baking moved away from the wad tional top-down development process and established a White Star “project (earn ‘This comprised 15 people across several different departments. The team included production engineers, members of the finance and research and developipent Hopartments, sales managers, key account managers as well asthe marketing direc- tor and general manager ‘sasko Milling and Baking also ensured that their strategic planning department and advertising agency were closely involved in the brand development process “This team approach enabled Sasko Milling and Baking to draw on the different aroas of expertise and backgrounds, driving the project together, rather than relying gn decisions to filter down from headquarters. The team ran the development process from the brand blueprints right through to launch with @ consistency and Strategic synergy that has served the brand well over the years that followed feokminer) 115case STUDIES Consulting the consumer As maize is a commodity product, itis extremely difficult to differentiate one brand from the next. Itis certainly not possible to differentiate a brand by promising some- ‘thing that cannot be delivered. The maize meal consumer is an expert in this prod- ‘uct category, and certainly knows what maize meal can and cannot do, The decision was taken to launch White Star not on price but on a quality platform. ‘The White Star project team and the advertising agency decided that, given con- sumers’ close involvement in this category, the only way to develop a successful brand was to consult the consumer every step of the way. And so an extensive research and development process began that was to shape every component of the marketing mix. Mother knows best ‘The first step in the research process was to find out exactly who the potential pur- chasers of White Star would be. Research confirmed that the majority of super maize meal purchasers are urban or peri-urban females, between the ages of 18 and 35 who fall into LSM 3, 4 and 5. Extensive research was then conducted in this primary target market. Women tend to drive brand selection as, more often than not, they are the ones who cook and prepare maize meal for their families. As noted, these consumers are often under considerable financial pressure, They tely on maize meal to feed their families and keep them from hunger. As brand loyalty is high, many families have grown up knowing and trusting one particular brand. This means that there is both financial and social pressure regarding brand selection, and the perceived risk of purchasing new brand is high. “The results showed that “Mama knows her pap” and the consumers have a consis tent and uncompromising idea of what they expect from a quality maize meal. Theit perception of a high quality maize is one that‘ + is fine, white and smooth i + ishealthier because it is vitamin enriched + tastesbetter ; + cooks easily and fast + issoftand light after cooking + satisfies hunger and sustains energy. | i | If White Star was going to be able to support its positioning of superior quality twas sential that, intrinsically, the product met consumers’ high expectations. Consid- erable research was conducted on perceptions regarding the major competitor brands, as well as what consumers require in a brand of maize meal. For White Stat io successfully own the quality platform it would have to establish and maintain #: precise product specification for a maize meal that meets or exceeds these sta") dards. 4 When producing maize meal it is possible to adjust the amount of super maize ‘meal that is extracted from a single kemel of maize. Maize meal manufacturers C29 116 CE)therefore respond to decreases in supply, or increases in demand, by increasing the extraction percentage. However, this has an adverse effect on quality standards as it raises the number of black specks that are present in the maize meal, This clearly does not ft well with consumers’ expectations of a white and smooth maize meal, Indeed, research regarcling the stronger competitor brands in each region estab- lished that some of the opposition brands suffered from fluctuating quality stan- dards, Sasko Milling and Baking took the decision that quality was never to be com- promised, If faced with a sudden shift in supply or demand for maize, it would be better to reduce sales or run out of stock than to compromise on quality standards, Initially, the production of White Star was limited to only one mill 1o ensure the con- sistency of quality standards." Most super maize meals contain a mixture of fine, medium and coarse granules. The latter is the quick-cooking component in maize. The consumer wants.a product that is fine in texture and appearance, but that does not take too long to cook. Con- sumer panels were used to establish an exact and perfect product specification for White Stas. At least two months were spent testing and retesting several different product formulations, until they perfected a maize meal with the right taste, colour, cooking time and texture. The result was the perfect mix of coarse and fine granules due to a set of strict guidelines prescribing the exact proportions that were to pass through a series of coarser and finer sieves. There was even a stipulation as to the acceptable number of black specks per kilogram! The waine of vitamins 30% 25% 20% 15% 10% 2 5% 4 RI0C-R2ag R260-R309 Adoo-R499 R500-R9e9 1 000-R7 999 ‘Over R2 000 No answer Lessthan sao Figure 8.2. Average spending on food in rands per month Source: FutureFact 2000. OE) 117CASE STUDIES. Maize meal is the staple food of millions of South Africans. It is rich in complex carbohydrates and functions as an energy food. However, maize meal is a poor source of certain B vitamins, which are necessary in order to convert food into ener- sy Consequently legislation was introduced in 1979 to the effect that all maize meal must be enriched with B vitamins. Subsequent research indicated that, in order to be effective, this programme should be extended to include vitamin A. Vitamin A deficiency can result in blindness, poor growth and ‘an increase in childhood mortality. Research conducted by the Department of Health in 1995/1996 found that one in every three children in South Africa has marginal vitamin A status? Consequently, Sasko Milling and Baking decided to enrich the new White Star super maize meal with both vitamin B and vitamin A. The decision was taken to | absorb the cost of enrichment so that it was available to the consumer at no extra cost. This had obvious benefits for the consumer and also gave White Star aunique selling point and a platform for positive PR exposure at the time of the launch: "The first super maize meal with vitamin A” Keeping the market in the mix Having identified the correct intrinsic mix for the product, the next step was to finalise the other elements of the marketing mix ~ ensuring that the target market / approved of each and every aspect, Q ‘The team continued to make use of consumer panels, presenting consumers in focus groups with several alternatives that had been put forward for the brand name, pack design and advertising campaign. Frequently marketers will create two | or maybe three mock-ups when making selections in this manner. However, in this “| instance the team ensured that respondents had a wide range of alternatives from ‘which they could extract or combine the preferred elements until, after several per- mutations, the ideal result was identified. This research approach is regarded as being one of the key factors contributing to the success of the brand. 4 ‘The name “White Star” was one of the options presented to the panel. It had been registered as a wheat brand by Sasko Milling in the early 1900s, but had been dor- mant for most of the 20th century. The name was popular among respondents as it held positive connotations with the “White” echoing their expectations regarding the qualities intrinsic to the product. The “Star” implied that not only is the brand a great performer, but it will also make those who eat it go far. Once the brand name had been selected it was essential that the pack design maintain the positive brand message. ‘A modern design incorporating some of the elements of traditional maize pack- aging was decided on. The design contains a simple and striking red “shooting stat" graphic on a white background. ‘The answer lies within 4 The brand team was quick to recognise that no brand will succeed unless it has the «) strong and consistent support from the internal sales and distribution departments, -- White Star enjoyed one of the biggest internal launches ever seen within Sasko Milling and Baking. : 0 6S) |WHITE STAR: & NEW BRAND GOES BIS Everyone linked to the brand was given a “brand fle” that clearly outlined the brand strategy as well as the rationale behind it In addition, a grand scale intemal anch show was staged playing on the theme of Star Wars as White Star prepared © Tato battle with the strong maize meal competitor brands. The show included 8 gal effects and voice-overs and motivational material, geting everyone, from fac- tory floor through to CHO, united behind the brand. Discipline in distribution ‘The distribution effort behind White Star was very focused. Rather than trying to get the brand stocked in every store, the distribution teams in each region were asked fo compile a list of 10-20 key customers. ‘Once identified, the team focused exclusively on these retailers, the rationale boing that focused attention would yield better results, and consumer demand would soon pull the product into the remaining outlets Brand positioning: Making it through the maize haze tris often argued that appeal based on product innovation or improvernent is hard to maintain, and most markets are a poo! of parity products with competitors clos- ing the innovation gap in a very short space of time, This, together with the fact that White Star was entering a commodity market, made the job of differentiating White Star from competitor brands that much more difficult. The advantages of unique and improved production specifications and being the first to add vitamin A would be too short-lived to make these viable unique selling points. “The team realised that in order to differentiate White Star from the opposition they would need to elevate the brand to have a unique proposition and a unique style of communication, White Stars unique brand proposition can be summarised in the slogan that was developed for the product: The clever choice. ‘The slogan indirectly refers to the fact that White Star was the first super maize meal with vitamin A and, as a result of the improved production specifications, is ‘whiter finer, more nutritious and filling than any other super maize meal, Sasko Milling and Baking chose this particular slogan because they wanted to cominui- cate the comparative advantages of their brand in a manner thet would nelther date hor incite challenge from the marketing association, which is quick to contest com- parative statements. White Star's unique brand proposition was pivotal to the launch and communica: sion strategy. The campaign took advantage ofthe fact that White Stars target market enjoys informative advertising and tends to read copy. Thus the advertising cam paign could be used to communicate, in some detail, the evidence that White Stor is ithe clever choice” and that it matches consumers’ very specific requirernents for @ quality brand of maize meal. ‘Often a brand's icon will embody the brand personality, but as White Star did not have an ieon it was important that the campaign also worked to affirm White Star’ brand personality. The objective was to present the brand personality as + clever + bright ena) 119WHITE STAR: A NEW BRAND GOES BIG ‘Atthe same time, extensive promotional activity took place in the form of in-store “wet dems’, Product demonstrations and sampling at funerals, weddings and other ‘community events within the target market were also run during this time. Extensive advertising continued throughout this period, reaffirming the brand positioning and assuring White Star users of the “cleverness” of their brand choice, Building loyalty ‘As appealing as the “cow and calf” promotion was, it held the obvious risk that con- sumers might revert to their regular brand as soon as the promotion ended. ‘To combat this risk, the promotion was followed by a number of other in-store promotional activities. in this manner, newly gained market share held and a new brand had found its way onto the shelves in many South African kitchens. Making the most of your media ‘The primary media used in the White Star advertising campaign were radio and magezines, as these offered optimal exposure within the target market. ‘The campaign focused on communicating to the woman that by buying White Star she was making a “clever choice” for the real stars in her life ~ her husband and children, ‘The above-the-line campaign was strongly supported by in-store promotional items. In addition, a White Star trailer shaped like a space shuttle was developed. ‘The shuttle emitted a column of smoke and broadcast voice-over messages strongly supporting the advertising campaign as it travelled through high-traffic areas in Gauteng and KwaZulu-Natal. Cashing in on kwaito At the time of the launch kwaito music was starting to win a growing audience in South Africa. In 1999 White Star kicked off with a commercial that was developed for television and radio. The advertisement centred on a kwaito jingle by Dantai, written specifically for White Star. The campaign was a brave break from the traditional maize meal (and White Star) advertisement format, with no references or allusions to mother and her clever choice in maize meal. The gamble paid off. The kwaito jingle went to number one on the Metro music charts, sending White Star sales soaring and launching a promising career for Diggy Bonz. and Goggy. Advantage magazine reported the results of the unusual advertising campaign in its December 2002 issue: Asked to position White Star maize meal differently, the White Star agency decid- ed to take the brand out of the kitchen. The agency produced a commercial fea~ turing kwaito singers, Dantai and beautiful dancers hopping and bopping toa catchy White Star song which sang the praises of the brand. By moving maize ‘meal out of the kitchen and using a ficn image, we created a unique positioning for the brand. Since the firs flighting, sales have shown astronomical growth, ‘and we can only put this down to the advertising theme that added a fun ele~ ‘ment to a basic food product (onbie) 121case sTuDIES + modern + honest + caring = health-conscious + clean * proud © discerning + helpful Astar is born The brand personality and unique positioning proposition were pivotal to White Star's launch strategy, both internally to Sasko Milling and Baking staff and external- ly to the consumer. The launch strategy began in March 1999 and comprised three cumulative phases: Growing awareness ‘The first step was to make consumers aware of the brand and inform them of Sasko Milling and Baking’s role in the maize market. Before consumers will even consider trying a brand they obviously need to be made aware of its arrival in the marketplace and the values for which it stands. In addition, Sasko Milling and Baking was a relatively new player in the maize market so it was important that consumers be made aware of the fact that they were behind the brand and that they bring reliability and quality to the maize meal category. Radio was the primary medium selected for this part of the launch campaign as it offered enormous reach and frequency within White Star’s target market. Print was also used in this phase of the campaign as it was vital that consumers were able to recognise the packaging (illiteracy rates are high within the target market) and those that are able to read were given an opportunity to learn about White Star’s superiot product offering. Inducing trial ‘As noted previously, super maize meal is a category in which consumers are brand | Joyal, and the perceived risk when trying new brands is high. It was therefore vital that consumers be given good reason or, where possible, a risk-free opportunity to try out this new brand. i Itwould not have been possible to maintain high quality perceptions of the brand if twas launched as the cheapest brand on the market. Consequently it was priced just marginally below the leading brand in the category. Consumers within the given target market are frequently cash strapped and opportunities to economise are wel | come. With this in mind, Sasko Milling and Baking launched White Star with a spe- cial offer that quickly became known as the “cow and calf promotion”. For three months consumers were given a free 1 kg pack with every purchase of a 12,5 kg bag of White Star (the standard monthly purchase size). 120 GassWHITE STAR: A NEW BRAND GOES BIG Atthe same time, extensive promotional activity took place in the form of in-store “wet dems”, Product demonstrations and sampling at funerals, weddings and other community events within the target market were also run during this time. Extensive advertising continued throughout this period, reaffirming the brand positioning and assuring White Star users of the “cleverness” of their brand choice. Building loyalty As appealing as the “cow and calf” promotion was, it held the obvious risk that con- sumers might revert to their regular brand as soon as the promotion ended. To combat this risk, the promotion was followed by a number of other in-store promotional activities. In this manner, newly gained market share held and a new brand had found its way onto the shelves in many South African kitchens. Making the most of your media ‘The primary media used in the White Star advertising campaign were radio and ‘magazines, as these offered optimal exposure within the target market, ‘The campaign focused on communicating to the woman that by buying White Star she was making a “clever choice” for the real stars in her life ~ her husband and children, ‘The above-the-line campaign was strongly supported by in-store promotional items, In addition, a White Star trailer shaped like a space shuttle was developed. ‘The shuttle emitted a column of smoke and broadcast voice-over messages strongly supporting the advertising campaign as it travelled through high-traffic areas in Gauteng and KwaZulu-Natal Cashing in on kwaito At the time of the launch kwaito music was starting to win a growing audience in South Africa. In 1999 White Star kicked off with a commercial that was developed for television and radio. The advertisement centred on a kwaito jingle by Dantai, written specifically for White Star. ‘The campaign was a brave break from the traditional maize meal (and White Stat) advertisement format, with no references or allusions to mother and her clever choice in maize meal. The gamble paid off. The kwaito jingle went to number one on the Metro music charts, sending White Star sales soaring and launching a promising career for Diggy Bonz and Goggy. Advantage magazine reported the results of the ‘unusual advertising campaign in its December 2002 issue: Asked to position White Star maize meal differently, the White Star agency decid ed to take the brand out of the kitchen, The agency produced a commercial fea- turing kwaito singers, Dantai and beautiful dancers hopping and bopping to.a catchy White Star song which sang the praises of the brand. By moving maize ‘meal out of the kitchen and using a fun image, we created a unique positioning for the brand. Since the first flighting, sales have shoun astronomical growsh, and we can only put shis down to the advertising theme that added a fun ele- ment to a basic food product. ORES) 121case sTuIEs A star performer Years of careful planning and implementation produced excellent results for the “White Star team. By the end of 2000 Sasko Milling and Baking held more than a 30% share of the maize meal category and within 20 months of launching White Star had captured more than 10% of the super maize meal market share. ‘As Figure 8.3 indicates, while White Star sales grew, overall sales in the super ‘maize meal remained fairly static. This means that not only did White Star succeed in taking market share from the more established competitor brands, it did so in a market where overall demand remained fairly constant. 1 Wie Star market snare (4) +20 000 /— Toa super sales (Aah) 100 000, 0000 0.000 40000 20000 W ume Sar fans) gt tet lg! Tg! Tg! S at Tg ag gt gh lgh Tet! y PERSE R EL EERE REE | Figure 8.3. Growth of White Star relative to overall sales ‘Sour: Sasho Wang ar Baking, ;WHITE STAR: A NEW BRAND GOES 81a The biggest battle lies ahead While White Star has seized a sizeable portion of the market share, strong regional skews still exist, with White Star's market share varying from between 5% and 70% depending on the region in question. One of the company’s new marketing chal. lenges is to even out these regional skews, Having successfully attained and exceeded original growth targets, White Star now faces its toughest baitle. In 2002 the cost of maize crops and raw materials increased by at least 100%. The cost of producing White Star has increased signifi cantly but, as always, the poor are the hardest hit. As people's financial siuvations worsen, their brand loyalties intensify and their dependence on promises of high 7 quality deepens. Sasko Milling and Baking have had to invest significantly in new production tech nology as production capacity limits were starting to hinder sales growth, Newly imported technology has now made it possible to extract more super maize meat from a single kemel without compromising on quality. However this, in itself, may not be enough. ‘| 100% T 93% 7 80% iby 58% 60% + 40% 2% i 20% | o% ant EE ECE eee eee eee Gee i: 3 42 8 © 8 § & & eh % who say they always have enough to eat ee Figure 8.4 For milions of South Atticans hunger is a real problem ‘Source Fact 2000 Food prices began to soar in early 2002 and by the end of the year, for the first {fine in history, 1 ky of maize was more expensive than the same quantity of flow “he South African government and major retailers agreed to subsidise the price of ‘maize in order to ensure that millions of South Afticans do not go without their prt Cnsiner} 123CASE STUDIES ‘mary food source. In tough times such as these, “White Staris going to find it very dif Feu 7o compete with the more affordable subsidised gener vroduction costs and the cost of raw materials for super mare ‘meal have contin- ued to rise, and Sasko Milling and Baking will have to pass 0 some of these price tnereases to the consumer. Their consumers budgets can only stretch so far. How ‘can Mr Bower’ team ensure that consumers continue fe choose White Star rather Shan competitor brands? Most importantly, how do they enstie ‘that consumers stay Jing to cheaper maize-based vitin the super maize meal category instead of switch tape products, such as speci, sifted or unsifted maize? vec white Star team are preparing for the battle ahead, ensittae that their new television advertising campaign and ail fature marketing plans are in keeping with their recipe for success thus far, namely research, evaluate, plan and implement ~ keeping the focus firmly on the White Star consumes Not satisfied with merely sur- ising the current conditions in the market, they ae determined not merely £0 ve tntain the current sales volumes for White Stat; but 10 este that these continue to improve. Already, they have identified severa) Key regions where White Star's mar- xket share is not as strong as in other areas and have targeted them for sales growth. ite Danie Bower says, “If you want to be a leaden, you can't be looking over your shoulder.” NOTES 1, Bower, Danie— Marketing Manager: Mills, Sasko Miling and Baking. ; 3, Marais, Jan—Marketing Executive, the Pioneer Pood Group, 3. The South African Advertising Research Foundation (GAARF) Living Standards Measure (LSM) Is a widely used continuum that segments ‘the consumer market ait eight ISM groups, from LSM 1 (the lowest) to LSM 8 (the highest and most { affluent). 4, White Star brand fle, Sasko Milling and faking, 1999. 3 BACKGROUND READING Kotler, Ch. 3, 10, 18, 15 Kotler & Armstrong, Ch. 2, 8,9, 10, 11 ‘Lamb, Hair, McDaniel, Boshoff &Terblanehe, Ch. 2 Perreault & McCarthy, Ch. 3,6, 9; 10,16 pride & Ferrell, Ch. 2,6, 9, 20 FURTHER READING Bhrenberg, AS.C., Goodhardt, GJ. & Barwise, TP. 1990. Double jeopardy revisited! © Journal of Marketing, 54 (July), 82-91 é ‘McKenna, R. 1991. Marketing is everything. Harvard Business Review, January/Feb= - ruary. Nagle, TT. & Holden, RK, 1995. Strategy and tactics of pricing, 2nd ed. Upper Saddle: entice-Hall. River, 124