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AN EXAMINATION OF THE PROMOTIONAL MIX USED FOR NEW PRODUCTS IN AN ESTABLISHED MARKET.
Author: Afnan Zarief (100199597) Supervisor: Dr. Alison Lawson Date of Submission: 6th May, 2011.
B.A in Business Administration Module Name: Applied Business in Practice Module Code: 6IM003 Word Count: 12,046
ACKNOWLEDGEMENT It is a great pleasure to hereby present my Applied Business in Practice research paper. I would like to take this opportunity to send my gratitude and thanks to my supervisor and mentor Dr. Alison Lawson for her never ending support, helpful advices, valuable feedbacks, for keeping me on track and supporting whenever I wanted her to be by my side. I would also like to thank my friends in Riyadh, KSA who have been helpful throughout the writing process. My special thanks to my friend Sidra Majeed for the patience she showed in proof reading of my paper. The last one month, period of writing the research, have been filled with both expected and unexpected challenges. This research work has taught me many things including the way we look at research process and promotional mix. Today, finally after one month the writing of my research paper has come to an end and I hope that my work can contribute to my fellow students and their better understanding of the contributions of Promotional mix for new products in an established market.
This research was conducted to get the in depth ideas on the usage of the promotional mix used for new products in an established market. I started this research with an inductive approach and then changed to a deductive approach by finding the specific promotional tools which were being used by Almarai for their recently launched Vetal Digest Probiotic Laban. A quantitative, survey approach was used, to find out which promotional tools were used to promote Vetal Laban. Through the research, lots of information have been collected and learnt. As the market has developed, more consumers have started moving beyond simple motivations such as trying to lose weight or maintain normal health levels. Instead, people are increasingly looking to optimize levels of performance and wellness, in areas such as digestive and cardiovascular health. In meeting that demand, Almarai has launched their Vetal Probiotic Laban which offers numerous health benefits including the stimulation of a healthy digestion system. Almarai is a trusted brand across the GCC region, with market leadership in dairy, juices and baked goods. The largest integrated dairy foods company in the world, Almarai has particularly strong marketplace presence and distribution coverage in KSA and the other member countries of the GCC – Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. In the following sections, the effective promotional tools that are used to promote new products are discussed along with the promotional tools adopted by Almarai in particular was examined and discussed in the later sections. Recommendations were being made too at the end.
9 Quality Standard…………………………………………………………….....3 Limitation of the method ……………………………………………………………33 4.2.29 1.55-56 7. RECOMMENDATIONS & CONCLUSION………………………………………….06 1.2.1 Competitor Profile…………………………………………………………………….4 Aim & Research questions……………………………………………………………. APPENDIX…………………………………………………………………………….23-27 3..2. EMPIRICAL DATA……………………………………………………………………34-47 Introduction of Almarai………………………………………………………………….2 Background …………………………………………………………………………….07 1.30 1.2.7 Sample Selection…………………………………………………………….8 Data Analysis………………………………………………………………..5 Time Horizon………………………………………………………………..09 2.TABLE OF CONTENTS 1..30 1..2.6 Data Collection………………………………………………………………31 1. ANALYSIS………………………………………………………………………………48-54 6..44 IMC of Almarai & Almarai Brand………………………………………………………..05 1.28-33 1.30 1..33 1. METHODOLOGY……………………………………………………………………..04 1..4 Research Choice…………………………………………………………….2.2 Research Approach………………………………………………………….2 Research Process……………………………………………………………………..3 Promotional Mix……………………………………………………………………….10-22 Advantages & Disadvantages of Promotional Tools……………………………………. LITERATURE REVIEW …………………………………………………………… 10-27 Promotional Tools……………………………………………………………………….2..3 Research Strategy………………………………………………………….32 1.31 1.5 Structure of the report…………………………………………………………………..57-59 3 .45-46 5.34-35 Promotional Tools of Almarai……………………………………………………………39-44 Almarais‘ Achievement……………………………………………………………………..29 1..2.08 1.1 Research Purpose……………………………………………………………………28 1..1 Research Philosophy………………………………………………………..32 1. INTRODUCTION……………………………………………………………………….2.
―Laban‖ is an Arabic word which stands for ―Buttermilk‖ and is a very popular thirst quenching drink and makes up an important part of the daily diet of the Arab consumer. tasty. the fats are removed to make butter. The target market of this product is mostly youth. calories and skim milk. Healthy bacteria found in this drink improve digestion. Probiotics are the so-called ‗good bacteria‘ which help to maintain a healthy balance of bacteria within the digestive system. On the other hand. Vetal Digest Probiotic Laban is a smooth. Has less fat than regular milk. “Today's consumers want more than just a tasty. Vitamin B-12. manufacture nutrients. Easier to digest than regular milk because it contains even more lactic acid than can be found in skimmed milk. calcium and phosphorous. refreshing drink at the same time healthy drink which has gained popularity in the GCC region. The World Health Organization (WHO) defines probiotics as ―live micro-organisms which. They want a health miracle in a bottle. Because of all such benefits. an insight and some guidelines showing the usefulness of the tools of promotional mix applied in practice using the example of an established dairy firm from GCC ―Almarai Company‘s‖ recently launched product ―Vetal Digest Probiotic Laban‖. when consumed in adequate amounts. It also contains probiotics. Therefore Laban products are popular in these areas.” Gulf marketing review (2009) The health benefits which Almarai offers in Vetal Digest Probiotic are: Good source of potassium. they help with digestion and strengthen immune system. refreshing drink.INTRODUCTION It‘s not only an ordinary dissertation but is a case study which holds quite an importance for the marketers which will definitely give them twofold advantage. their effectiveness and their pros and cons will be discussed further too. protect against cardiovascular diseases and protect against carcinogens. boost Immunity. This report will likewise benefit the prospective students by providing them with an adequate knowledge on this significant field of promotion. As the weather of whole GCC region is quite warm in almost seven months of the year therefore people in these areas want something refreshing to drink. And the best part is that one can consume buttermilk anytime – as a drink. which is refreshing and healthy! 4 . provide measurable health benefits‖. many times physicians advertise patients to consume buttermilk instead of milk as it contains less fat.
500 hectares of land and has 1. as well as its various subsidiaries. Kharj region. The joint-venture has allowed Alsafi to produce 165mn liters of milk per annum. which included rearing cattle and yielding raw milk. the company entered into an agreement with Al-Faisaliah Holding Group and International Danone Group has formed a joint venture between Alsafi and French dairy. In advertdition. At present. long life milk. In 2001. which processed and packed fresh milk.1 Competitor profile: Al Safi Danone Company (Alsafi) Al Safi project was initiated by Royal Prince Mohammadvert Bin Abdullah Al Faysal in 1979 and he established the farm in Sahbaa valley. 5 .400 employees. Al Safi Danone is a joint venture between two giants: the French based Danone Group and the Saudi based Alfaisaliah Group since 2001. the farm hadvert also established an integrated private factory.The biggest competitors of Almarai Vetal Digest Probiotic are: 1. the company has approximately 3. The company was basically involved in the entire range of the dairy foods industry.
-Kurtz. The company has a contribution to supply around 1. while the balance of equity is in the hands of the local public. The main tools mentioned in the literature to communicate with potential customer are: 1) Advertising 2) Sales Promotion 3) Personal selling 6 . This section looks upon the background of this research which is ―Promotional Mix‖ and explores around the main tools of promotional mix. There are three basic objectives of promotion. these areas have been grouped. 1. Kotler (2005) It‘s one of the key factors in the marketing mix and plays a key role in market success. NADEC is 20% held by the Government. (2010). to reach the potential customer and to reach the firms‘ goal. Consumers‘ attentions are hard to get in this highly saturated market. And also further discusses the aim and objectives of this research. and for convenience. NADEC has aimed to (i) reduce the dependence of Saudi Arabia on imports. Dave. That‘s why marketers usually spread the communication load over several types of communication medium.000 cattle heads.2 Background: To make one exceptional. (ii) increase dependability on national economy and (iii) encourage the contribution of the agricultural sector in the national product.200tons of dried dates per year and 30mn liters of milk. Promotion plays an essential role. OH: South-Western Cengage Learning. These are: 1) To present information to consumers as well as others 2) To increase demand 3) To differentiate a product. Contemporary Marketing Mason. The literature on the subject of ―Promotional Tools‖ and its usage in the marketplace in general covers a comprehensive range of topics within the defined subject area. Promotion is used to make sure that a product is reaching the door of the desired consumers and that the consumers are aware of the product too. The company has 4 cow farms that contain 24. This makes the company one of the very few widely held Saudi companies.National Agricultural Development Company (NADEC) The company was established in 1981 and has been engaged in producing the finest and healthiest nutritional products. to be recognized in today‘s saturated industry. ―Promotion‖ is one of the components of marketing mix which is established in marketing theory which helps organizations to reap most of the profits from the market.
direct marketing. in which the ingredients must be added at the right times and in the right quantities for the promotion to be effective. personal selling. When the concept of promotional mix was first developed.shirt might be considered as advertising or as public relations.3 Promotional Mix: ―The promotional mix is the direct way in which an organization attempts to communicate with various target audiences. a logo on a T.‖ Rowley (1998) Another business author Blythe (2008) has described promotional mix as―Promotional mix is like a recipe. The channels to be used are: advertising. Blythe (2008) Promotional tools are described more below: 1.4) Public relation These basic ―Promotional Tools‖ are still considered to be the main tools available to marketers. For example.‖ Brassington & Pettitt (2005) ―Promotional mix is the combination of the different channels that can be used to communicate the promotional message to the customers.‖ 7 . sponsorship and sales promotion. the above were the only elements available to marketers. But in the past 40 years more promotional methods have been entering into the market which does not fit within these four main categories easily. public relations and publicity.
tradverte unions etc.e: the media. Sales promotion involves tactical. 1. All the channels of the promotional mix should be given equal importance to get the effective result out of the promotional campaign. how messages from the company about its products and itself are transmitted via the elements of the promotional mix to the consumers. the following research questions have been prepared: RQ1: In general. mass communication. what are the key promotional tools used for promoting new products in a market? RQ2: What were the key promotional tools used by Almarai company to promote its recently launched product “Vetal Digest Probiotic Laban”? RQ3: Is Almarai getting expected success through the promotional tools being used? This research will also help in making recommendations for future promotion of Almarai Vetal Digest Probiotic Laban. shareholders. employees. Because each of these groups is receiving the messages from more than one transmitter. 8 . Jim Blythe (2008) The general terms of the promotional tools are stated below and an in depth look would be given to them in chapter 2.quality relationships with many interested groups (i. covers face-to-face. the elements of the mix also feed into each other so that the messages do not conflict. Advertising represents non-personal. short-term incentives that encourage a target audience to behave in a certain way.4 Aim & Research questions: The aim of this research is to identify the advantages and disadvantages of a range of promotional tools used to promote new products and Almarai Vetal Digest Probiotic in particular. personally tailored messages. Public relation is about creating and maintaining good.) Brassington & Pettitt (2005) The importance of promotional mix have always been felt by marketers because of its‘ immense effect on sales. Based on this aim. Personal selling is at the other extreme.The above figure shows. which will definitely have a long term effect too on consumers if the message is sent in a proper way. pressure groups and other publics.
2. journal and through observation. Analysis This chapter compares the empirical data with the results obtained from survey. 3. Empirical Data This chapter consists of the data collected from the Almarai company website.5 Structure of this report: This study consists of 6 chapters and each contains the following data: 1. 6Recommendations & Conclusions The final chapter contains the conclusions and recommendations of the research. Figure: Structure of this report 9 .1. Literature Review Chapter two provides with theories presented in previous researches related to Promotional tools. Methodology This chapter represents the methods used to conduct this research. Introduction The first chapter gives a background to the subject ―Promotional Mix‖ and is introduced with the theories of the effectiveness of promotional mix. 4. 5. literature.
from which many of them are also used in combination. Artwork in an advert should be eye catching in an advert as it captures the attention of consumers as it aids recognition when consumer sees the product in a supermarket shelf. Advertising: The word advertising originates from a Latin word called ―Advertise‖ which means to turn to. The dictionary meaning of the term is ―to give public notice or to broadcast publicity‖. There is an underlying assumption that a bigger advertising spend will inevitably lead to a greater sales volume. This means that an advertisement shown in one country or aimed at a particular audience is unlikely to work for consumers in other countries. to attract consumers to buy a product. And in the fourth chapter which contains empirical data. Following this. The first section of this chapter will cover the main tools of promotion in general.LITERATURE REVIEW This chapter reflects on the range of literature to determine which tools are commonly used for promoting new products in an established market. Following this. At times. will describe the promotional tools adopted by Almarai. An advert must have an unique selling proposition that no other firm possess. A wide range of promotional tools and their usage are suggested in the literature. Promotional tools in its‘ own place are quite huge to be discussed here. for an example. sales promotion with an advertisement through a special offer. therefore short description of each tools will be given. the literature available on the subject of the use of promotional tools adopted by Almarai in particular will be examined.‖ Blythe (2008) 10 . the advantages and disadvantages of the tools will be discussed. or for a different audience.‖ Blythe (2008) ―Advertising is always culturally based. Promotional tools: 1. marketers even combine promotional tools. ―„Advertisement‟ is a paid-for medium.
Geuens & Bergh (2010) Purpose of Advertising: To create awareness of the company To stimulate demand for product To promote brand or product in particular To counteract the promotional activities of competitors To keep on reminding customers about a product To support values of company‘s shares from the risk of falling Blythe (2008) 11 . Whatever the medium or style of communication is. Geuens & Bergh (2010). tell about the benefits and product uses while demonstrating the product. it is important to keep in mind the cross cultural aspect of that specific region or the target customer for whom the advert is supposed to be made. Rational appeals are more effective than emotional appeals when a product is new to the market. consumers are shown how a product works. Rational appeal contains feature. enable people to buy” This statement above intensely looks upon the importance of an advert which lures the potential customers through its‘ strategic and well-designed depiction that are capable of touching the consumers‘ heart and enabling them to buy a product. Making the simple complicated is commonplace. Geuens & Bergh (2010). Pelsmacker. There are many advertising mediums like: television adverts. factually relevant cues that can serve as evaluative criteria. radio. billboards. It‘s an easy way to focus on product attributes. according to a study. magazine or newspaper adverts. Among the broadly speaking two different types of creative appeals: rational and emotional. Pelsmacker. posters etc. practical details and verifiable. Pelsmacker. In a Demonstration which is a feature of rational appeal. it is essential that the message which is being conveyed is understandable by the general public and are at the same time relevant to the audience. Ginsberg (2005) once gave a valuable statement which fits exactly with our topic: “Don’t sell. internet. awesomely simple. that‘s creativity.While making an advert. making the complicated simple. because culture plays a vital role in the success of an advert.
real or imaginary. In these cases the prime emphasis in the advertising is to provide enough information to allow potential buyers to see how this product might relate to them. Usually the seller seeks to communicate the unique benefits. Essentials of Marketing This research was based around the product oriented pioneering and competitive advertising.Types of Advertising: Source: Brassington & Pettitt (2005). that distinguishes the product and gives it its competitive edge. Brassington & Pettitt (2005) also describes competitive advertising as: ―It‘s concerned with emphasizing the special features of the product or brand as a means of outselling the competition.‖ Brassington & Pettitt (2005) On the other hand. ―Pioneering advertising is used in the early stages of the life cycle when it is necessary to explain just what the product will do and the benefits it can offer. 12 . As the product we were going to research was recently launched in the GCC market. and thus to stimulate enough interest to encourage further investigation and possibly trial.
important features? 2. products are not features but the logo or brand names are showed at the end of the clip. dentist. Rational campaigns: According to Blythe (2008). a marketer must ask himself the following questions: 1. it ―Appeals to the consumers‘ cognition‖. Are hidden qualities important to buyers? 3. These are mysterious adverts having no meaning. Lifestyle campaign: This campaign targets the aspirational groups which mainly positions the product in consumers‘ mind. Before taking the decision of making an advertisement. Is the general demand trend for the product favorable? 4. Does the product possess unique. Some of them are: Teaser campaigns: These types of campaigns are basically to tease customers. and scientist appear to lend more weight to the argument that is being shown. Is the competitive environment favorable? 6.Advertising campaign: According to Blythe (2008). After being aired for few weeks. Often authoritative figures like doctors. there are different categories of advert campaign to spread awareness of the product. In these adverts. Are general economic conditions favorable for marketing the product? 13 . Is the market potential for the product adequate? 5. This method of adverts features facts and persuade consumers through rational argument. second advert is aired by the advertiser explaining the first one. as well as attracting maximum customers in the market. just to attract consumers.
the lowest. usually refers to functional superiority in the sense that the brand offer the best quality. Is the organization able and willing to spend the money required to launch an advertising campaign? 8.‖ 14 . Geuens & Bergh (2010) said: ―Most companies stick to promoting one unique benefit of their brand. which can be functional or non-functional.7. the most advanced technology. Unique selling proposition and Emotional selling proposition: While discussing about the USP & ESP. Pelsmacker. A non-functional benefit usually reflects a unique psychological association to consumers and is referred to as an emotional selling proposition (ESP). the best service. Does the firm possess sufficient marketing expertise to market the product? Source: adapted from Patti 1977. A functional benefit. also called a unique selling proposition (USP). Advertising in a cross-cultural environment: Figure: Major components of culture These cultural components may have an impact on how advertising messages are perceived and should be framed to be correctly understood by consumers in different cultures.
600 ads found that—contrary to popular wisdom—celebrity ads do not perform any better than non-celebrity ads. therefore. Surprisingly. Today. sales promotion accounts for 65 to 75 percent of the combined budget. The jug would fit either on to a shelf or into a fridge door compartment.Celebrity endorsement: An expert endorsement does not seem to be perceived as irritating. The company wanted. Tom. Sales promotions are vary in many ways which will be discussed below. Sales-promotion expenditures have been increasing as a percentage of budget expenditure annually for the last two decades. one study even suggests experts evoke more positive affective responses. and Grow (2006). The impact on brand sales was significant: a 37 percent increase over the equivalent period in the previous year. showed that consumers tended to use more squash if they kept it readvertydiluted in the fridge. Kotler (2002) 15 ." 2. Sales Promotion Sales promotion is an initiative undertaken by an organization to promote an increase in sales. to find a way of persuading mothers to make up bulk quantities of Ribena and store it in the fridge. The promotion was run over July and August in the major supermarket chains and over 1 million jugs were given away. and in some cases they perform much worse. the advertising-to-sales-promotion ratio was about 60:40. A sales promotion was run in which a free jug was attached to 2 litre bottles of Ribena. in a recent article by a CNBC Correspondent Wells.‖ Brassington & Pettitt (2005) A decade ago. usage or trial of a product or service. Pelsmacker. On the contrary. maker of the Ribena range of concentration black-currant juice. in many consumer-packaged-goods companies. ―Research undertaken by GlaxoSmithKline. it‘s said that: "Our study of more than 2. Geuens & Bergh (2010).‖ Altstiel. ―The ultimate goal of sales promotions is to stimulate potential customers to action.
There are many examples of CRM. d. b. Nestle printed individual codes on KITKAT packaging.This is an example of a self-liquidating promotion. To introduce new products ii.Websites and mobile phones that supports sales promotions in recent times. Free gifts – According to Kendrick (1998) – ―Gifts are used in order to increase sales.especially if there is a corresponding increase in sales. To attract new customers and retain the existing ones iii. you are still in profit . Once the card was full the consumer was given a free sandwich. c. or additional destinations are announced. create awareness and increase the loyalty among customers‖ For an example. from banks to supermarkets. e. and cost 10 cents to manufacture. in the United Kingdom. To meet the challenge of competition Some of the examples of popular consumer sales promotions could be: a. This is known as a PREMIUM sales promotion tactic.Objectives of Sales Promotion: The objectives of sales promotion are: i. Buy-One-Get-One-Free (BOGOF) . Budget airline such as EasyJet and Ryanair. For an example. Consumers could also text codes via their mobile phones to get the same result.incentives such as bonus points or money off coupons. e-mail their customers with the latest low-price deals once new flights are released. if you sell two for £1. Customer Relationship Management (CRM) . For example if a loaf of bread is priced at £1. enhance brand. Subway gave away a card with six spaces for stickers with each sandwich purchase. Discounted prices – For an instance. whereby a consumer would enter the code into a dynamic website to see if they had won a prize. New media . To maintain sales of seasonal products iv. 16 .
‖ Blythe (2008). in high streets and at petrol stations by a promotions team. g. on packs of the goods. relating to a specific movie release. These includes tasting of food and drink at sampling points in supermarkets. on the TV and radio. year ending and some other occasions are the times when these schemes are generally found in the market. During festivals. such as Mc. Vouchers and coupons – There are often seen in newspapers and magazines. Free samples – ―Free trials can be used to strengthen attitudes and believes towards the brand. are given away with promoted meals. h. end of the seasons. These offers are not available to the customers all through the year.f. i. magazines. on the Internet. Almarais‘ Vetal Laban was given away to potential consumers at supermarkets. 17 . Joint promotions – These promotions are given usually between brands owned by a company. Sales promotion adopts short term. Donalds giving aways toys when new animated movies releases. For example. and on packs. or with another company's brands. Competitions and prize draws – Can be seen in newspapers. For example fast food restaurants often run sales promotions where toys. non-recurring methods to boost up sales in different ways.
In personal selling. For an example. companies like Unilever. or persuade specific members of a particular audience. give demonstrations to. Personal Selling ―Personal selling can be defined as two-way. Regular communication maintains long term relationship and thus it proves to be a healthy component for the companies‘ finance sector. face-to-face communications used to inform. 18 . Types of Personal selling: In today‘s competitive business world. CocaCola. have a strong negotiating position towards the trade because no store can afford not to have these brands on their shelves‖ Pelsmacker. the salespersons literally have to go through some training procedures as it increases sales performance. ―Trade selling is concerned with selling products to supermarkets. Procter &Gamble.3. companies need to constantly keep in touch with their customers. maintain or establish a long term relationship with. Geuens and Bergh (2010) Among the other types. pharmacies etc. Geuens and Bergh (2010).‖ Pelsmacker. groceries.
for both new and established products. the launch day. it could be picked up by the news media and be worth millions of dollars in equivalent advertising. for example.‖ Kotler (2005) “Microsoft’s campaign launching Windows 95 was an MPR success story. three-fourths reported that their companies used MPR. and society in general. It pays only for a staff to develop and circulate the stories effectively and manage certain events. shareholders. marketing managers. 1995. Microsoft paid The London Times to distribute free its entire daily run of 1. ―In a survey of 286 U. Microsoft teams around the world executed attention-grabbing publicity.000 headlines. suppliers.4. No paid ads for Windows 95 had appeared by August 24. If the company develops an interesting story. They found it particularly effective in building awareness and brand knowledge. Microsoft hung a 600-foot Windows 95 banner from Toronto‘s CN Tower.5 million copies to the public. government officials. The company does not pay for the space or time obtained in the media. trade bodies. its success has been almost entirely due to publicity. and green colors of the Windows 95 logo. marketing managers are turning more to MPR (Marketing Public Relation).‖ Brassington & Pettitt (2005).S.‖ Kotler (2005) 19 . and over 3 million words were dedicated to Windows 95 from July 1 to August 24. not bad for a $90 product. employees. Public Relation According to the Institute of Public Relations 1984 public relation is defined as―The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics: customers. sales alone were $108 million. creative public relations can surely affect public awareness at a fraction of the cost of advertising.S. The Empire State Building in New York was bathed in the red. Since the power of mass advertising on its‘ own is not so effective in this saturated market. has spent very little money on advertising. yellow. Kotler (2005) Following are the examples of PR: “The Body Shop. 6. Yet everyone knew about it! The Wall Street Journal estimated that 3.‖ Kotler (2005) Undoubtedly. By the end of the first week. U.852 stories.
In considering when and how to use MPR. its product. article. 4. outings. These include annual reports. 4. MPR can affect public awareness at a fraction of the cost of advertising. ―Some experts say that consumers are five times more likely to be influenced by editorial copy than by advertising. seminars. contests and competitions and anniversaries that reaches target publics. choose the PR messages and vehicles. cultural events and highly regarded causes. brochures. exhibits. whereas. trade shows. Kotler (2005) PR is usually used for conveying a firms‘ important information to the concerned publics. and evaluate the results. management must establish the marketing objectives. 4. company newsletters and magazines. implement the plan carefully. its people and get the media to accept press releases and attend press conferences.5 Public-Service activities: Companies can build goodwill by contributing money and time to good causes.‖ Blythe (2008) 20 .1 Publications: companies rely extensively on published materials to reach and influence their target markets.The lesson is clear: Good advance PR can be much more effective than millions of dollars spent on advertising.4 News: One of the major tasks of PR professionals is to find or create favorable news about the company. Following are the major tools in MPR: 4. 4. It is of prime importance for every company in recent business world and is being called as the ―dynamic tool‖ in business world now a day. many companies today use marketing public relations (MPR) to support their marketing departments in corporate or product promotion and image making. Vetal laban is mentioned in the annual report. and is often much more credible.2 Events: Companies can draw attention to new products or other company activities by arranging special events like news conference.3 Sponsorships: Companies can promote their brands and corporate name by sponsoring sports.
and audiences. and maximum communications‘ impact through the seamless integration of discrete messages. general advertising. To do this most effectively. consistency. maker of Benadryl. and materials describing the product‘s benefits.Integrated Marketing Communication: Promotional tools work best if they are integrated. sales promotion and public relations—and combines these disciplines to provide clarity. Kotlers‘ following statement might act as a perfect and practical example of IMC: ―Sales promotion seems most effective when used together with advertising.‖ ―Given the fragmenting of mass markets into minimarkets. People who called the number more than once received free product samples. a price promotion alone produced only a 15 percent increase in sales volume. has creatively used IMC to promote its antihistamine drug. direct response. the proliferation of new types of media. When combined with feature advertising. For an example: Warner-Lambert. sales volume increased 24 percent. sales volume increased 19 percent.‖ Kotler (2005) The American Association of Advertising Agencies also states. integrated marketing communications (IMC) is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines—for example. These people also received a newsletter with advice about coping with allergies. messages. In this regards. as they all works together towards the same objectives and goal. The company used advertising and public relations to increase brand awareness among allergy sufferers and to promote a toll-free number that provided people with the pollen count in their area. companies need to use a wider range of communication tools. when combined with feature advertising and a point-of-purchase display. companies must embrace integrated marketing communications. Kotler (2005) 21 . and the growing sophistication of consumers. coupons. In one study.
term.‖ Wikipedia The American Marketing Association defines brand as: ―A name.‖ Blythe (2008) Importance of branding: It gives customer the ability to assess quickly the value and quality of new products by association with a well-known brand name. Similarly Almarai is such a brand which promises for quality and their tagline says it so “Quality you can trust” Properly implemented. or combination of them. intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. sign. 22 .―Commercial advertisers often seek to generate increased consumption of their products or services through "branding." which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. or design. symbol. some brands like Rolex and Lexus are regarded as status symbols. Consumers also derive psychological rewards from brand names. IMC improves the company‘s ability to reach the right customers with the right messages at the right time and in the right place.‖ ―Brands are powerful instruments of strategic marketing and important vehicles on the road to long-term profitability. For an example.
product positioning helps build customer trust.ADVANTAGES AND DISADVANTAGES Mix Element Advertising Advantages Good for building awareness. and repetition of main brand. both big and small alike. Below are some advertising mediums and their advantages: Newspaper: It‘s one of the traditional mediums used by businesses. With the increasing popularity of the Internet. Allows business to reach a huge number of people in a given geographic area Flexibility in deciding the advert size and placement within the newspaper Adverts can be as large as necessary to communicate as much of a story as companies care to tell Readers can go back to the printed message again and again according to desire Quick turn-around helps an Newspaper: Adverts on newspapers are charged per its‘ space Adverts has to compete against the clutter of other advertisers. as newspapers are commonly read once and then discarded. effective at reaching a wide audience. Newspapers are a highly visible medium. including the giants adverts run by supermarkets and department stores as well as the adverts of competitors Usually adverts have a short shelf life. newspapers are facing declining readership and 23 Disadvantages The disadvantages of advertising mediums are discussed below: . to advertise their businesses. through which competitors can quickly react to the companies‘ pricing strategy.
companies may need to advertise simultaneously on several stations to reach the desired target audience. through which tactical adverts can touch the listeners‘ heart and tempt them to buy that particular product. A growing number of readers now skip the print version of the newspaper and prefer to read the online version of the publication instead. Space and advert layout costs are higher Magazines: . High reader involvement means more attention paid to the advertisement Better quality paper permits better color reproduction and full-color adverts As radio listeners are spread Radio: It‘s such successful medium. Better targeting of audience. 24 Radio: Have to make plans weeks or months in advance for publishing adverts on magazines. however more expensive. market penetration. This medium allows companies to reach highly targeted audiences. Magazines: These are more focused medium. as companies can choose magazine publications that cater to their specific audience or whose editorial content specializes in topics of interest to the desired audience. The delay in publication increases the risk of an advert getting overtaken by competitors. an alternative to newspaper advertising. over many stations. There is limited flexibility in terms of advert placement and format.advert reflect the changing market conditions. The advert decided to run today can be in customers' hands for one to two days or even more.
Pleshette L. sound and motion. Television: It permits companies to reach large numbers of people on a national or regional level in a short period of time Independent stations and cable offer new opportunities to pinpoint local audiences. Television being an imagebuilding and visual medium. Adverts are an interruption in the entertainment. a radio advert may require multiple exposures to break through the listener's "tune-out" factor and ensure message retention Radio is a background medium. and even in the car. It is an universal medium enjoyed by many people at one time or another during the day. Most listeners usually are seen doing something else while listening. radio charges have been seen less than the other media. Because of this. Television: Messages are generally temporary. which means that an advert has to work hard to get their attention. at home. and may require multiple exposure for the advert to rise above the clutter Adverts on network affiliates are concentrated in local news broadcasts and station breaks Preferred advert times are 25 . Gives a business personality through the creation of campaigns using sounds and voices Rates of advertising in radio can usually be negotiated During the past ten years. at work.A Listeners cannot go back to the adverts to go over important points . it offers the ability to convey your message with sight.
It helps to introduce new products in the market by drawing the attention of potential customers. Too much promotion may damage brand image.A Personal Selling Highly interactive . A Costly . which limits the amount of information you can communicate Relatively expensive in terms of creative. A good short term tactical tool. A Sales Promotion Has ability to increase sales by targeting promotional incentives on particular products. as most adverts are only thirty seconds long or less.often sold out far in advance Limited length of exposure. customers may get used to the effect. Pleshette L. Not appropriate if there are thousands of important buyers. Pleshette L. production and airtime costs. Pleshette L. A L. Excellent for communicating complex / comprehensive product information and features. Pleshette If used over the long-term.employing a sales force has many hidden costs in addition to salaries. Pleshette L.lots of communication between the buyer and the seller. A 26 .
g. A Lack of control on what other people/press write or say about your product. magazine. Pleshette L. newspaper) Inexpensive way of reaching many customers . Pleshette L. A This section has answered the research question 1 of this research paper which was: “What are the key promotional tools used for promoting new products in an established market?” 27 . which might affect sales.if the publicity is achieved through the right media. May face criticism.Public Relations Often seen as more "credible" since the messages seems to be coming from a third party (e.
(Saunders. to ask questions and to assess phenomena in a new light‘ (Robson 2002). Descriptive research is ‗to portray an accurate profile of persons.1 Research Purpose There are several suggestions to use as research purposes. 1. what are the key promotional tools used for promoting new products in a market? RQ2: What were the key promotional tools used by Almarai company to promote its recently launched product “Vetal Digest Probiotic Laban”? 28 .METHODOLOGY In this chapter the methodology used in this research will be presented. descriptive and explanatory (Yin. 2008). If you are conducting exploratory research you must be willing to change your direction as a result of new data that appear and new insights that occur to you. this research was basically a descriptive one. 2003). 2008). such as if you are unsure of the precise nature of the problem (Saunders. the most used are exploratory. Nonetheless. Exploratory research means finding out ‗what is happening. to seek new insights. However. On the other hand. 2002). events or situations‘. (Saunders. The purpose of this section is to develop an understanding by the reader for how literature and empirical data were collected. A great advantage of this kind of research is that it is flexible and adaptable to change. (Robson. the research also included some exploratory stages as well according to our aim that we based this research on ―To identify the advantage and disadvantage of a range of promotional tools used to promote new products and Almarai Vetal Digest Probiotic in particular‖. It is particularly useful if you wish to clarify your understanding of a problem. 2008). It is necessary to have a clear picture of the phenomena on which you wish to collect data prior to the collection of the data. Exploratory research was helpful in finding the answers for the research questions 1 and 2: RQ1: In general. This chapter will also present how data were gathered in order to find the answers to the stated research questions.
2 Research Process: The Saunders structure represented by the ―onion‖ (Saunders et. Saunders famous research process ‗onion‘ provides different approaches. 2007) had been selected as the most appropriate structure and therefore was primarily used to determine the methodology for this research project. Johnson and Clark (2006).1.” 29 . strategies and data collection methods across the continuum of research philosophy.2. al.1 Research Philosophy: “As business and management researchers we need to be aware of the philosophical commitments we make through our choice of research strategy since this has significant impact not only on what we do but we understand what it is we are investigating. Positivism Realism Deductive Interpretivism Philosophies Experiment Survey Mono method Case study Action research Mixed methods Grounded theory Objectivism Approaches Subjectivism Strategies Crosssectional Data collection and data analysis Longitudinal Pragmatism Choices Functionalist Time horizons Multi-method Ethnograph y Archival research Radvertical Inductive humanist Radvertical structuralist Interpretive Techniques and procedures Figure: Research Process 1..
Through the deductive approach theories are studied from the beginning before making research and collecting empirical data.4 Research Choice: As part of the strategy.For this research. 2007). The research question was: “Is Almarai getting expected success through the promotional tools being used?” To get the answer for the above question. It is popular and common strategy in business and management research and is most frequently used to answer who. where. Among many research strategies ―Survey‖ strategy was felt the best for this research as it gives more control over the research process and when sampling is used. Jacobsen (2002). 1. Theories are then collected and the data first collected analyzed. this method seemed to be the accurate option. We were being investigating the key promotional tools used for promoting new products and their pros and cons. Quantitative approach was adopted. how much and how many questions. 30 . what. The inductive way of making a research is when research is collected with an open mind before studying theories. the method I had chosen to conduct this research was ―Mono method‖ also called ―Single data collection technique and corresponding analysis procedures‖.2 Research Approach There are two ways to collect theories and models for a research. For this research.2. 1. Jacobsen. The survey strategy is usually associated with the deductive approach. (Saunders.2. 2002. “Realism” was adopted which is a philosophy that deals with social issues and their impact on a proposed study. at first the research was approached in the inductive way later on the deductive approach was chosen. Saunders (2003). To be able to answer the research question 3.3 Research Strategy: ―A research strategy is a general plan guiding the researcher to the answer of the research questions‖. it is possible to generate findings that are representative of the whole population at a lower cost than collecting the data for the whole population. these are called inductive and deductive. It therefore tends to be used for exploratory and descriptive research. The Survey strategy will be able to answer the research question number 3: “Is Almarai getting expected success through the promotional tools being used?” 1.2.
secondary data.we have at least two (and often more) waves of measurement in a longitudinal design.‖ Trochim (2006). we are taking a 'slice' or cross-section of whatever it is we're observing or measuring. Different forms of secondary data include: Journals. 1. Newspaper articles. to be able to find sufficient and unfolding data. ―Many times secondary data can be easier or more practical to use because of the availability of already existing information‖ Saunders (2007) It is basically a kind of information that is already available and which is used by the researcher as a source for data used in their research. that‘s why an open ended questionnaire was designed. As the requirement was to gather focused information on the specific research question. A longitudinal study is one that takes place over time -. is a data collected by others than the author itself and is collected for other specific purposes. Primary data is the information that is collected first hand by the researchers. Books. In addition. and Biographies 31 .5 Time Horizon: ―A cross-sectional study is one that takes place at a single point in time. Census Data.2.2. secondary data were used together. Cross-sectional study was selected for the inadequate time of this research paper. This research study was based on both secondary and primary data.Kotler (2005).6 Data Collection: When a report is written the research can be based on either primary and secondary data or both of them together.―Quantitative data are those whose values are measured numerically as quantities‖ Saunders (2008). For this research. 1. In effect. It can be collected through: Surveys Interviews Focus groups Questionnaires On the other hand.
structured questionnaire had been used because of its ability to create discussions. The searching process for literature started with searches regarding the marketing mix and promotion and was further narrowed down to search words like: ―Promotional Tools‖. 1. The theoretical framework in this research starts with the theories regarding marketing mix. During the research. books.8 Data Analysis: When the empirical data had been collected the process of data analyzing started instantly. open ended. Respondents were requested to fill in the questionnaire from different districts of Riyadh city: Al-'Olayya (Commercial Centre of Riyadh) Al-Shemaysi Al-Bat'ha Al-Malaz Al-Ha'ir Umm Al-Hamam 1.2. simplified and transformed. abstracted. Random sampling procedure was conducted. These fields of marketing were needed to be included at the beginning since they give the reader a wider look and an introduction along with an understanding on the field of promotional tools. ―Effectiveness of promotional tool for buttermilk‖. To secure the validity of this study the quantitative research had to be done with an actual customer of Vetal Digest Probiotic Laban. articles that had been collected from the library of the University of Derby and internet along with company websites. In conducting this research.7 Sample Selection: Getting in contact with the right respondent is vital for the research. ―Dairy‖.2. 32 . Miles and Huberman (1994) described three activities to analyze collected data and these are: 2. ―effectiveness of Promotional Tools‖. and annual reports were used. Some of the search words used for this research are: ―Marketing‖. The purpose of this phase is to organize the data so conclusions can be verified and drawn. importance was given to select the up to date literature and articles but not the literature from many years back. selected. promotion and further the promotional tools. brochures.1 Data reduction: The phase where data is focused.8. if not it may turn out to be an invalid or insignificant research. ―Effectiveness of promotional tool for dairy product‖ etc. Samples of 50 respondents were covered.The secondary data used for this research were various journals.
using the same methods on a similar sample‘ To increase the reliability of this research.8.3 Limitations Of The Methodology The sample chosen for the questionnaire may not be representative of the target market. the research might not be methodologically perfect. 1. Nevertheless. the result of the research might modify with the span of time since the Vetal Digest Probiotic Laban is recently been launched and that the perception of the consumer towards this product is subject to change in near future. the systematic data collection method was followed.8. 1.9.1 Validity: Saunders et al (2007) define Validity as ‗concerned with whether the findings are really about what they appear to be about‘.2. For time limitation and disability to interview some knowledgeable person of Almarai. When analyzing the collected data from quantitative research. These are described below: 1. Because of limited time and resources. the above activities described by Miles and Huberman (1994) were applied 18.104.22.168 Data display: The phase where the data is reduced and organized in a compressed way to make it easier to draw conclusions.3 Conclusion drawing and verification: The phase where the researcher starts to make comments and explain what thing means. 33 . Consequently.9 Quality Standards: There are two main concepts while deliberating the quality of research work.9. this method and sample had to be chosen.2. the research was conducted within 50 samples from Riyadh and therefore cannot be generalized. An in-depth interview couldn‘t be taken because Almarai is a highly confidential company and doesn‘t allow anyone to interview their stuff without any reference. 2. Quality of this research was increased by using established literature for defining the concepts used in the literature review section and by providing with the exact references at the end of the report.2 Reliability: Marshall (1997) defines reliability as ‗the degree to which we could expect the same results if we or other researchers carried out the study again. reliability and validity.
cheese and butter. This enables them in keeping their efforts continually aligned to what the customer wants.EMPIRICAL DATA This chapter will present the empirical data which have been collected from the sources such as: Almarai website. the range of fresh products was expanded to include Figure: Almarai Sales 2010 zabadi. John O'Kelly. Marketing Manager of Almarai Company Limited said. "As with all our products. the company expanded into many product ranges including fresh long life dairy which are made primarily from fresh milk. gishtah and labneh which are a type of crème cheese spread. Introduction of Almarai: Almarai Company is a multinational company and a leader in the GCC region. Later on the chapter will focus on the findings connected to the research questions sequentially. imported from Europe. annual reports and through observation of its product Vetal Digest Probiotic Laban. bakery. fruit juices. Since its establishment in 1977. Almarai is based in Riyadh. Annual report of Almarai 34 . poultry. Later. Starting with the processing of fresh milk and Laban. literature. the company has been at the forefront of transforming traditional daily farming in Saudi Arabia. Almarai uses only the best and in doing so are able to produce products that aid in putting us at the forefront of the dairy market. as well as low fat products and Almarai branded butter and cheese.‖ Almarai utilizes a range of consumer and retail research methodologies and best practices which help them monitor market and consumer trends. In the beginning of this chapter. a brief introduction of Almarai will be presented. Every new product we develop has been through numerous research procedures to ensure we can satisfy the consumer's requirements. the capital city of Kingdom of Saudi Arabia (KSA).
―Milk and Laban are core to the success of Almarai. Almarai markets a range of food and beverage products under the Almarai brand. Panda Hypermarkets. where Almarai has captured a leading 40% share of the fresh dairy market. In recent years. Almarai is an integrated group spanning the food supply chain from dairy farms to retail stores. The growth of these products continues to be strong and market shares in KSA reached record highs in 2009‖ Annual Report Almarai Anticipating the need to develop a strong distribution channel. UHT milk and fruit juices to its list of high volume products. Almarai went about installing powerful distribution information system for its fleet of sales vehicles and depots. Carrefour. Mission statement: To provide quality and nutritious food and beverages that enriches our consumers‘ lives every day.S. Almarai products are shipped on a daily basis to distribution centers in all parts of Saudi Arabia and in other GCC countries. Geant etc. FDA Pasteurized Milk Ordinance (PMO). the company added fruit yoghurts and dairy desserts. By 1998. principally through retail outlets such as Othaim. Vision statement: ―To be the consumer‘s preferred choice by leading in chosen markets with superior food and beverage products. 35 . Almarai strengthened its market leadership position and became a low cost producer that reflected in its profitability. Almarai's new plant complies with 3-A standards and the U.
Figure: Almarai Products 36 .
5%. providing consumers with a probiotic alternative. Qatar. Kuwait.) According to the Almarai Annual report 2010. Bahrain. (The GCC includes Saudi Arabia. Figure: Vetal Digest Probiotic Laban 37 . The success of these products has surpassed our most optimistic projections and exceeded initial market share targets. the United Arab Emirates and Oman. ―Almarai Vetal advanced nutrition laban and zabadi products were launched into the GCC market. Fresh dairy market of Almarai grew by 12.Almarai Vetal Digest Probiotic falls into the FMCG group which are sold quickly and at relatively low cost. marketers need to work hard on getting these products famous to the consumers. To make these products sell. but they generally sell in large quantities.‖ Almarai Annual Report 2010 Almarai enjoys leadership status in the fresh milk and Laban categories across the GCC (Gulf Cooperation Council) countries. Though the absolute profit made on such FMCG products are relatively small.
Laban is largely consumed in KSA as the figure shows. As the graph shows. Almarai has the largest share in the Laban market in the GCC regions. 38 .
If men are to appear in an advert. Often the Laban manufacturers complicate their adverts by showing irrelevant things. they opt for both USP and ESP. they must wear decent dress and if women are to appear in an advert. Almarai. Thus. Otherwise the adverts aren‘t allowed to play in any channels of KSA. As Almarai themselves is a well-known brand known for their quality for a long time. And this is done by pioneering and competitive advertising techniques. Advertising: Almarai is a multinational company in the GCC region and takes every step to get their products to their customers. While promoting Vetal Digest Probiotic Laban. 39 . because in Islam bareness is strictly prohibited. The strategy of Almarai is to communicate the health benefits of Vetal Digestive Probiotic Laban. shows a bottle of Vetal Laban and quick display of the health benefits. such advert should be created. they show the health benefits of the product. This might be one fruitful factor which brought for Almarai a GEMAS effie MENA Awards which is a prestigious award for outstanding advertisements. Keeping this in mind. Promotional tools used by Almarai for Vetal Digest Probiotic Laban: 5. Whereas. which will show the basic health benefits of such Laban products. while advertising Vetal Digest Probiotic Laban.Advertising strategy of Almarai: The target group of Almarai for Vetal Digest Probiotic is: Young population The primary objective of Almarai in promoting Vetal Digestive Probiotic Laban through adverts is to reach the maximum Laban drinkers in the GCC market and convince them to buy their healthy drink. Vetal Probiotic Laban. Advertisings conducted in Kingdom of Saudi Arabia (KSA) are always culture based. Almarai even combines promotional tools to promote its‘ products. Unique selling proposition and Emotional selling proposition: Though many companies stick to one benefit of their brands while promoting them. Almarai combined TV advert with Billboard promotion along with brochures to get the product to every targeted customers possible. their promotional activities includes the brand identity showing their logo in every product they promote and also while promoting a specific product for example. Almarai goes for both. customers just want to have a quick grasp on the health benefits. decent adverts are shown. As the maximum populations of KSA are Muslim. they must wear hijab that is ―scarf‖ and a decent dress.
Television adverts: Almarai spent a favorable amount on TV advertisements to promote Vetal Digest Probiotic Laban. They locate billboards on such commercial areas such as Olayya. it‘s an effective appeal when a product is new to the market. No doubt. Posters have been proved quite beneficial in attracting consumers towards a product. and Posters. Among many advertising mediums. Billboards: Almarai tries to reach the maximum market through continuous advert about Vetal Digest Probiotic Laban on Billboards. the benefits and product usage. Posters: Almarai makes posters frequently and delivers those from house to house and in supermarkets. 40 . Billboards. Newspaper: Adverts can also be seen occasionally about Vetal Digest Probiotic on the front or the middle pages of newspapers. Newspaper adverts. fresh and energetic. Almarai chose the following to promote Vetal Digest Probiotic Laban: Television adverts. Tahlia etc where majority of the people arrives for many business purposes and entertainment as majority of the supermarkets. After drinking she looks lively. malls are in those places. The recent Vetal Laban advert that is on-air now. Just then she sees a bottle of Vetal Digest Probiotic Laban on a table and drinks that.Almarai uses ―rational appeals‖ for its adverts on Vetal Laban where it shows the attributes. shows a working woman with upset stomach and feeling uncomfortable working.
But Almarai surely distributed free samples of Vetal Laban drink in disposable glasses in supermarkets by a promotion team. when Vetal Laban was first introduced in 2010. it was found that 26% of the customers of KSA get attracted towards sales promotion. But Almarai haven‘t offer much sales promotion on Vetal Digest Probiotic Laban as it was recently launched and Almarai was taking other promoting tools to promote Vetal Laban. Bahrain. The company‘s distribution network is second to none in the region. the United Arab Emirates and Oman. They deliver their products in the following sectorsFinished products are transported by a fleet of over 75 forty foot refrigerated containers to 28 distribution depots.2. Kuwait.000 customers are serviced on a daily basis throughout the Kingdom of Saudi Arabia. Personal Selling: Managed through four sales regions and 28 distribution depots. 3. 41 . Product is also exported to Yemen and the Lebanon. Almarai performs trade selling. over 17. strategically located throughout the Gulf Region. Sales Promotion: From the findings through questionnaires. Qatar. Over 400 three to five ton refrigerated town delivery vehicles are used to cover approximately 350 routes.
Almarai sponsors many conferences. Some of them include: Pediatric Surgery Update Workshop 2009 Health and beauty show Womex Expo 42 . In addition. External PR: Almarai has been a positive corporate member of the society which stems out of its belief in the importance of contributing to the social investment efforts. recruit and train the prospective young talents for various positions throughout the company. Almarai supported Bin Baz Charitable Project to Assist Young Men in Marriage and enabled the biggest group-marriage that ever took place in Saudi Arabia. Almarai took part in organizing the Scholastic Excellence Award for Public Education students. The company has been proactively engaged in the community through direct charitable donations and vital sponsorships of events supporting social causes around GCC. we all will benefit in the longer term. The event helped in increasing access to marriage for men with limited incomes. The award was inducted in the United Arab Emirates.4. forums and festivals. Public Relation: Community services Of Almarai: Almarai believes that by giving something back to the community in which we operate. Almarai has a strong focus on employing and retaining local nationals and is working with government authorities such as Saudi Human Resource Development Fund and Technical Vocational Training Corporation to attract. In combination with the Arab Bureau of Education at the Gulf Cooperation Council. Events conducted by Almarai: With a view to supporting community based development. where Almarai recognized and awarded 42 students from all levels of public education throughout the Gulf region for their academic achievements. Internal PR: Almarai believes that their employees are the most valuable asset to the business and that the company‘s success over the past few years would not have been achieved without their dedication. They believe that investing in employees is essential to maintain its‘ competitive advantage. Moreover. an Award for Scientific Creativity was launched in partnership with the King Abdulaziz City for Science and Technology with the aim of encouraging scientific research which eventually benefits society as a whole.
The Company has been proactively engaged in the community through direct charitable donations and dynamic sponsorships of events supporting social causes. Prince Sultan CityAlmarai has sponsored cultural and entertainment programs as well for Humanitarian Services for patients with special needs. The Saudi Breast Cancer Society (Zahra) and The Saudi Blindness Welfare Sponsorship: Almarai also sponsors the following: Almarai Vet Awards The first Gulf Therapeutic Nutrition Conference Women‘s career week The following are the charitable activities performed by Almarai: Sponsor Disable Collective MarriagesRiyadh Deputy Governor Prince Sattam bin Abdulaziz. Down Syndrome Charitable Association. Saudi Autism Organization. honored Almarai for supporting a mass wedding program involving 150 physically challenged people. Cause of the DeafAlmarai also supported the Women‘s Cultural Center of the Saudi Association for hearing impairment. 43 . Some of the welfare societies that Almarai supports include: Orphan Welfare Society (Ensan). 10th Intensive Pediatrics Training Course 6th Forum for disabled Children Society‘s Women Members and Obesity Awareness Day Public-service activities: Almarai has been always a optimistic contributor to the society.
. Recent Events of Almarai: 5th Scholastic Excellence Award for GCC Public Education Students in Oman Almarai sponsors Jeddah Equestrian Championship Tabuk Prince Stresses Gratitude for Almarai‘s Scentific Innovation Award ALMARAIS ACHIEVEMENT: Almarai has won two GEMAS effie MENA Awards for its two successful Fresh Cream and Vetal Digest campaigns. Mr. "The fact that our two entries won the award means the campaigns were effective and on target. received the awards at a gala night held at Madinat Jumeirah. Supporting Association of BlindAlmarai donated 500 white walking sticks to the Association of Blind. Quran memorization competitionTo encourage physical and mentally disabled children to memorize the Holy book of Islam The Holy Quran. a religious duty that must be carried out at least once in a lifetime by every able-bodied Muslim. GM Marketing for Almarai. Helping Orphans Perform HajjIn coordination with the Riyadh Orphans Care Charitable Society (ENSAN) Almarai paid the cost for a large number of orphans who wanted to perform hajj which is the fifth pillar of Islam.Perfected!Won a silver Effie. while the bronze award went to the launch campaign for Almarais‘ Vetal Probiotics range (Laban & Fresh cream). Hussam Abdul Qader. Solidarity with terror victims of floods at JeddahAlmarai distributed aid packages and different foodstuffs to the flood affected victims in Jeddah last year on 2010. These awards recognizes the best achievers who implement best international practices in the advertising industry every year which is a hard award to win by chance. And that vouches for the effectiveness of our marketing and communications approach which is 44 . Dubai. Almarai sponsored a competition at Riyadh. Almarai's Fresh Cream campaign: The Perfect.Autism patientsAlmarai sponsored a function organized by the Autism Families Society at the Riyadh Gallery Complex..
shown below: OLD LOGO NEW LOGO A new graphic in the center of the logo presents green pastures. The most direct interpretation of the brand‘s new symbol are open fields. It expands the brand‘s dimensions with more variety and strength. The green and blue which denote nature are the dominant colors in the old as well the new logo. 45 . added Abdul Qader. power and growth.driven by our permanent commitment to offering best quality products to our valued customers". nature. Visually and symbolically. IMC of Almarai: LOGO: Almarai has redesigned its logo to reflect the qualitative leap the company has taken in recent times and convey its message of quality. innovation and continuous development in Almarai. while the blue and green colors exemplify the food and beverage origin of the products in Almarai‘s portfolio. the rows representing the growth of Almarai and its business units. the new brand icon has various explanations. diversity. Almarai‘s business expansion beyond dairy needed a new icon to embrace a wider reality. GM Marketing for Almarai. the logo expresses the spirit of rejuvenation. In general terms.
‖ Almarai An Almarai branded product is a promise to the consumers that Almarai‘s product meets their high standards and customers‘ expectations every time. it ensures compliance with regulations. They have also received the ISO 9001-2000 award. The following brands are under Almarai brand: Bakery Products Poultry Products Infant Nutrition Products Dairy and Juice 46 . Its consumer impact in the local market can be compared to that of Ford. processing. it protects their brand that they have developed over 3 decades. ―Quality You Can Trust‖ remains central to everything that they do. across all its operating divisions. it ensures that Almarai exceed their consumer‘s expectations every time. Almarai is the first dairy company in the world to have been accredited with ISO 9002.ALMARAI BRAND: ―Almarai is an exceptionally strong brand. Focus on developing the quality culture has continued throughout 2009 through the continued development of internationally recognized integrated quality management systems and certification to world recognized food safety standards. procurement. distribution and supply chain. technical research and development. Guinness or other such high profile brands internationally. including farms. Coke. it ensures they maintain their competitive advantage and ultimately.
Today, with diversification into fresh juices, bakery and poultry sectors, the same insistence on quality applies across a much wider product range. Consumers have become familiar to Almarai as a synonym for premium quality and expect no less when they see the brand endorsement on new product lines.
This section has answered our research question no. 2, which was: ―What were the key promotional tools used by Almarai company to promote its recently launched product “Vetal Digest Probiotic Laban”?
Which of the following attracts you the most towards a product?
12% Press release 4% Sales promotion 26% TV advert 20%
TV advert Billboard Magazine Sales promotion Press release Celebrity endorsement
10 16 3 13 2 6
Analysis: From the survey, it can be seen that billboard gets the most attraction in Riyadh, KSA market. Almost 32% of the respondents said they get attracted through billboards which are by the way the most prominent and an effective way of advertising products in KSA. The second largest vote went to sales promotions which almost 26% respondents prefer. And about 20% of the respondents said they gets attracted towards the TV adverts.
Which of the following brand do you prefer most?
18% 6% 48% 28% Almarai Alsafi Danone Nadec Al Rabie
Almarai Alsafi Danone Nadec Al Rabie
24 14 9 3
Analysis: Almost 48% respondent, (24 out of 50) said they prefer Almarai brand over the other brands.
How did you come to know about Almarai Vetal Laban?
TV Advert 4% 10% Through friends 30% 40% 16% Billboard Sales Promotion Observed in supermarket
TV Advert Through friends Billboard Sales Promotion Observed in supermarket other
15 8 20 2 5
Analysis: 40% of the respondents said they came to know about the Vetal Digest Probiotic Laban through Billboards. 30% of them voted for TV advert and 30% said through friends. It is because Almarai had spent a lot on TV adverts and Billboards to promote its product. And from the analysis, it can be said that ―Word of mouth‖ plays a vital role for companies profit growth.
50 . 51% people responded they had seen TV advertising on Vetal Laban last week.When have you seen a TV commercial of Almarai Vetal Laban? Last week Last month Last three months Last six months No 23 9 3 10 Last week 22% 7% 20% 51% Last month Last three months Last six months No Analysis: When people were asked about the TV adverts on Vetal Laban. the summer time in KSA. Almarai simply are taking advantage of the demand. This means Almarai are aggressively promoting their product. People wants thirst quenching smoothing and refreshing drinks in summer. One of the reason of this could be.
Which of the following adverts on Almarai Vetal Laban do you see most often? 4% 8% 12% 6% 20% 50% Billboard TV Advert Radio Magazine Newspaper Pamphlets Posters Other Billboard TV Advert Radio Magazine Newspaper Pamphlets Posters Other 25 10 3 6 2 4 Analysis: Almost 50% of the respondents have said they see billboard advertising on Vetal Laban most often. It is quite justifiable from the previous findings and this one. 28% of them expects ―2 for the price of 1” and 24% of them said they wants the “Buy 1 get 1 free” offer. If you want Almarai to give sales promotion on Vetal Laban. which of the following promotion would you expect? 40% 8% 28% 24% 2 for the price of 1 Buy 1 get 1 free Instant lottery Scratch cards Free gifts 2 for the price of 1 Buy 1 get 1 free Instant lottery Scratch cards Free gifts 14 12 4 20 Analysis: It is seen from the survey. 20% of them voted for TV adverts. Whereas. that Billboards are seen quite effective in product promotions. that 40% of the customers of Almarai expects free gifts. 51 .
As seen from the graph.If you are looking for Almarai Vetal Laban and find that it is out of stock. But it‘s seen from the graph that Almarai needs to work hard on Vetal Laban to get their customers‘ loyalty towards this product. What would you do? 20% 24% 56% Search somewhere else Pick another brands' laban Do nothing Search somewhere else Pick another brands' Laban Do nothing 12 28 10 Analysis: The purpose of this question was to identify the brand loyalty among people. Which of the following are you? 38% 22% 40% Price conscious Quality conscious A bit both Price conscious Quality conscious A bit both 11 20 19 Analysis: From the graph. 52 . 56% of the respondents said they‘ll most probably pick another brands‘ Laban if they don‘t find Vetal Laban around. it is anticipated that 40% of the Almarai customers are quality conscious and 22% are simply price conscious.
This is a positive sign for Almarai Company which shows they have successfully conveyed their product messages through prospective Medias. 53 .Are you happy with the price of Almarai Vetal Laban? 28% Yes 72% No Yes No 36 14 Analysis: It is anticipated from the above graph that. The other 28% people are perhaps among the 22% price conscious people. majority of the Vetal Laban customers is happy with the price. Almarai Vetal Laban is a healthy drink Strongly agree 64% Agree Strongly disagree Disagree 36% Strongly agree Agree Strongly disagree Disagree 32 18 Analysis: 64% respondents strongly agree of the health factor of Vetal Laban.
brochures etc. 3: Is Almarai getting expected success through the promotional tools being used? 54 . the majority of the people are well aware of the health benefits of Vetal Laban.Are you aware of the health benefits of Almarai Vetal Laban? 30% 70% Yes No Yes No 35 15 Analysis: Again the analysis has successfully shown that 70%. The rest 30% can be made aware through more promotional campaigns such as sufficient distribution of flyers. This section has answered our research question no.
found from the open-ended questionnaires. In case of celebrity endorsement. since Saudi people are fond of football. Almarai must make every possible move to grasp their consumers‘ attention towards their healthy Laban Vetal. As Almarai isn‘t an international company and planning to operate in the GCC region. Almarai should advertise in English too to grab those 31% customers in order to increase sales. Though they have included the nutrition information on almost every product but have missed to provide the information on Vetal Digest Probiotic Laban. they might ponder on the idea of endorsing its Vetal Probiotic Laban with a celebrity football player.RECOMMENDATIONS FUTURE POSSIBILITIES: The consumption in Saudi dairy market is expected to increase at a CAGR (compound annual growth rate) of 2. 5. 55 . Many consumers have suggested increasing their TV adverts.e. 6. It‘s essential to include such important data so that consumers can grasp the health benefits just by looking at the website. Almarai should update their website on the nutrition information about Vetal Digest Probiotic. 4. It is worth mentioning that majority of the consumption inside the Kingdom is associated with fat rich and long life dairy products i. 2. Almarai can increase their sales promotion such as: they might offer free mugs with each Vetal Digest Probiotic Laban or offer 1 more complimentary product with Vetal Laban to increase the popularity.0% during 2009-13. As almost 31% of the population is made up of foreign nationals living in Saudi Arabia. 3. From the analysis it was seen that majority of the customers aren‘t loyal to the Vetal Laban range. Almarai Annual Report The following are the recommendations given to Almarai: 1. which is proportionately linked with the expected growth in the domestic population. Almarai also should take such steps as one of the competitor of Vetal Probiotic Laban. butter and cheese. They should increase their sales promotions and TV adverts to reach the maximum market in KSA. To get their loyalty towards this product. Activias‘ product was promoted by a well-known actress and author Jamie Lee Curtis which pushed everyone to consume that product. As the Laban market of KSA is already saturated. From the survey it was found that 30% of the consumers don‘t know the health benefits of Almarai Vetal Digest Probiotic.
32% of them said they are influenced by Billboards and 26% said they are influenced by the sales promotion to purchase a product. The survey we conducted confirmed that the interests of consumers to promotional activity is increasing. which shows that the consumer decision to purchase is influenced by promotional activities. which is also the objective of this research. Almarai Is no doubt a successful Company enjoying monopoly of the KSA market. From the 28% customers. 56 . The influence of decision to purchase decision of the consumer also is clearly demonstrated by our study. who are unhappy with the price of Vetal Laban. might be made satisfied with the sales promotion scheme that is suggested above. This assertion is supported by the conducted survey.7. I am convinced that the promotional mix is particularly important in the sale and distribution of food products. The consumer is influenced in a relatively high percentage of billboard advertising to purchase a product. The effie Award that Almarai got proves the effectiveness of the promotional campaign that they conducted to promote Vetal Digest Probiotic Laban. the causes that could influence this phenomenon is primarily the media and practiced advertising. CONCLUSION At the end it can be said that. as a percentage of 20% people interviewed admit that they are influenced by advertising. From here emerges the importance of advertising and billboards in the sale of new products in particular.
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Press release 6. Alsafi Danone 3. Last three months 60 Male Female .APPENDIX: B Questionnaire Participant No. TV Advertisements 2. Billboard 4. Nadec 4. Last month 3. Observed in supermarket 6. Magazine 4. price off. How did you come to know about Almarai Vetal Laban? 1. prizes. Bill board 3. Which of the following brand do you prefer most? 1. Al Rabie 3. warranties etc) 5. TV advertisement 2. Celebrity endorsement 2. Almarai 2. Sales promotion 5. Last week 2. Sales promotion (Cash refund offers. Other ___________________________________? 4. When have you seen a TV commercial of Almarai Vetal Laban? 1. Through friends 3. free trials. Which of the following attracts you the most towards a product? 1.: Age: Gender: Occupation: Email – id: Place where you live: 1.
What would you do? 1. Radio 4. Strongly agree 2. Last six months 5. Buy 1 get a complementary product free 3. Newspaper 6. Posters 8. What comes into your mind when you hear ―Almarai‖ and ―Almarai Vetal Laban‖? Please answer briefly. _________________________________________________________________ 8. Other _______________________ 6. Magazine 5. Instant lottery 4. Scratch cards 5. which of the following promotion would you expect? 1. Pamphlets 7. If you are looking for Almarai Vetal Laban and find that it is out of stock. TV advert 3. No 5. Strongly disagree 61 . Which of the following adverts on Almarai Vetal Laban do you see most often? 1. Free gifts 7. You will prefer Almarai Vetal Laban instead of other Laban brands for yourself and your family‘s good health: 1.4. 2 for the price of 1 2. If you want Almarai to give sales promotion on Vetal Laban. Pick another brands‘ Laban 3. Bill board 2. Do nothing 9. Search somewhere else 2. Agree 3.
Yes 2. A bit of both 11.4. Agree 3. the filled-in questionnaires) are available on request. Disagree 13.e. No 14. Strongly disagree 4. Almarai Vetal Laban is a healthy drink 1. Strongly agree 2. Are you aware of the health benefits of Almarai Vetal Laban? 1. Are you happy with the price of Almarai Vetal Laban? 1. 62 . Yes 2. Which of the following are you? 1. Price conscious 2. Disagree 10. Quality conscious 3. Is there anything else you would like to say about Almarai Vetal Laban? _________________________________________________________ Thank You for Your Cooperation Full research results (i. No 12.