An integrated marketing plan for the Small Grin Mills in the Jamie Oliver cooking range designed by Messum Export for the laucnh of teh Jamie Oliver brand in the Spanish Market.

1. Jamie Oliver – Spain
¡Qué sea sencillo!
(Keep it Simple)
Small Grind Mills - Marketing Strategy
Spain 2011

2. Index
Executive Summary………………………………………………………….... 3
Macro Analysis – P.E.S.T. Analysis……………………………………….. 4
Spain – Vital Statistics……………………………………………………...... 5
Spain – Consumer Index…………………………………………………….. 6
Jamie Oliver in Spain…………………………………………………………… 7
The Spanish Consumer……………………………………………………….. 8
Micro Analysis – S.W.O.T……………………………………………………… 9
Marketing Strategy and Objectives……………………………………… 10
Segmentation, Targeting, and Positioning………………………...... 11
The Marketing Mix……………………………………………………………... 12
The Retail Environment………………………………………………………. 13
Point of Sale……………………………………………………………………….. 14
Implementation………………………………………………………………….. 16
Sales Objectives…………………………………………………………………… 17
Monitoring and Control……………………………………………………….. 18
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3. Executive Summary
Jamie Oliver has long since developed from a cheeky, celebrity TV chef, to the principal
ambassador for an internationally recognised brand promoting an enthusiastic and fun
approach to creating uncomplicated meals from good quality, healthy ingredients.
Over recent years the brand has developed its global appeal enjoying phenomenal success in
its international expansion. Jamie Oliver TV programmes are aired in more than 100 countries
and his products can be bought in over 40 different nations worldwide.
In Spain, the Jaime Oliver brand gets regular exposure through the emission of its TV
programmes on Canal Cocina, a popular cooking channel and his retail products are on sale in
all many outlets of the El Corte Inglés premium retailing giant. However the brand does not
enjoy widespread recognition and the average Spanish consumer is, at best, only aware of
Jamie Oliver as an enthusiastic, young chef, failing to appreciate the breadth of the Jamie
Oliver brand.
The purpose of this report is to provide Fiddes Payne, on behalf of Jasa Internacional S.A.
with an integrated marketing strategy for the introduction of the Jaime Oliver Small Grind
Mill Range into the Spanish market place, in this instance the Community of Valencia. In so
doing, it is hoped that Fiddes Payne will not only achieve a greater understanding of the
Spanish retail environment and consumer trends but also establish an on-going, successful
relationship with Jasa Internacional S.A., their Spanish distribution partners.
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4. Spain - PEST Analysis
Political Overview
The PSOE (Socialist Party) was re-elected in national elections in May 2008 but without an
overall majority with Prime Minister Jose Luis Rodríguez Zapatero at its head. Spain is
divided into 17 autonomous regions each with its own parliamentary government. In the
Community of Valencia the centre-right “Partido Popular” has been in office since 1995
although current, on-going corruption allegations could see this trend bucked in the
imminent autonomous elections in April. On a national level, Socialist Party is becoming
increasingly unpopular as a result of the economic crisis and it is widely accepted that
Zapatero´s party will fail to win another term in the 2012 elections.
Economic Overview
Before the crisis the Spanish economy was hugely dependent on its booming construction
sector, accounting for 16% of GDP in 2007, more than twice the EU average. However, at the
end of 2008 Spain entered recession. The economy contracted by 3.6% in 2009 and 0.3% in
2010 with unemployment rising to 20%. However, positive growth is forecast for 2011 and
Spain has some notable strengths that will assist the recovery, such as a robust central
banking system and a resilient export sector
Social Overview
Spain has a different working timetable. The majority of businesses will shut between 14:00
and 16:30 and employees generally finish the working day at around 20:00. Despite the
presence of regional dialects the main business language used throughout Spain is
undeniably Castilian Spanish. Generally English is not widely spoken especially amongst
smaller agents or distributors. British firms will therefore need to be prepared for
communicating in Spanish.
Technological overview
The Spanish IT sector is now worth over €100bn but modern IT systems have been slow to
penetrate SME´s and as a result Spain lags behind its European neighbours.
Spain has been marked 7.77 out of 10 for business environment e-readiness in The
Economist’s “e-readiness ranking 2008”.
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5. Spain - Vital Statistics
Population: 46 million
Madrid: 6.3 million
Barcelona: 5.3 million
Trade statistics 2010
UK Exports to Spain € 8.9bn
UK Imports from Spain € 9.1bn
Comunidad de Valencia
Population: 5.1 million
Valencia Capital: 2.5 million
Alicante: 476,000
Castellón 180,000
Trade statistics 2010
UK Exports to Valencia € 0.9bn
UK Imports from Valencia € 1.7bn
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6. Spain - Consumer Index: Q3 - 2010
As is the case in many other European countries
there is an increasing trend among Spanish
consumers to spend more of their money in
Supermarkets and heavy discounters to the
detriment of traditional retailers.
The performance of the Spanish supermarket
format, which has gained more than 2% market
share in the last year can, in the main, be attributed
to the continued success of the supermarket chain
Mercadona which combines value for money,
quality of produce and high convenience.
The economic crisis means consumers are
increasingly favouring hard discounting outlets and
seeking more “Marca Blanca” (Private Label)
brands.
Source: ©Europanel GIE 2010
6

7. Jaime Oliver in Spain
Despite the on-going international success of the Jamie Oliver brand, in Spain it remains
largely unknown. His TV programme “En Casa de Jaime Oliver” which is regularly emitted
by specialised, pay-per-view cooking channels has a small but loyal following.
However, the brand has failed to achieve wider appeal and those that do indeed recognise
Jamie Oliver consider him solely a talented and enthusiastic TV chef, remaining largely
unaware of his social campaigning, celebrity status and range of consumer products.
Who is Jaime? ¿Quién es Jamie?
United Kingdom Spain
TV Chef TV Chef
Celebrity Enthusiasm
Enthusiasm Fun and Tasty
Simplicity ?
Fun and Tasty ?
Naked Chef ?
Pukka Tukka ?
School Dinners ?
Recipe Books ?
Sainsbury's ?
Kitchen Products ?
15 Restaurants ?
7

8. The Spanish Consumer
Food plays a very important part in Spanish society with a great deal of time dedicated
the days main meal “la comida” (lunch). Traditionally many companies will shut for up to
two hours in the afternoon between 14:00 and 16:00 and employees will return home to
enjoy a homemade dish.
This trend in however changing with international businesses adopting a more north
European approach in their working hours and as such a greater emphasis is placed on
the ease and speed of preparing tasty meals.
It should be pointed out that the Spanish are, in general, fiercely proud of their nation's
culinary reputation and a stubborn reluctance to try something different permeates
many people's attitudes towards food “from abroad”.
This is evidenced in the fact celebrity TV chefs, a relatively new concept, are all from
Spain and rarely provide anything more daring that a reinvention of a famous and
popular national dish.
Karlos Aguiñano Ferran Adrià Bruno Oteíza
8

9. S.W.O.T. Analysis
Internal
Strengths Weaknesses
• Jamie Oliver as brand ambassador. Goes • Packing is not currently in Spanish
beyond cooking • Breadth of Jamie Oliver brand largely
• New exciting concept in home cooking unknown
• Strength of Jamie Oliver Brand • Route to Spanish market under-developed
• Well established brand philosophy and
image
External
Opportunities Threats
• Jamie Oliver has universal appeal • Traditional Spanish cooking habits conflict
• Modern trend towards a more north with grinder mill concept
European work ethic, emphasis on saving • Negative attitudes towards English cuisine
time • Eating habits and working routines are very
• Potential to cross sell other JO products, different in Spain
building consumer loyalty • Threat of dominance of private label
products
• Ongoing economic crisis means increased
price sensitivity
• Spanish consumer generally unreceptive to
new ideas
9

10. Marketing Strategy and Objectives
Strategy
As we have seen the Jamie Oliver brand is still relatively unknown among Spanish
consumers. Furthermore, those familiar with Jamie Oliver “the chef” are largely unaware
of the wide range of consumer products, books, restaurants and social campaigning that
make up Jamie Oliver “the brand”.
In addition, as a relatively new concept to food preparation the Jamie Oliver Small
Grinders range is in conflict with certain “dyed-in-the-wool” Spanish eating habits and
cooking techniques. To ensure success it is therefore crucial that the marketing message
challenges these traditional habits and stimulates not only a growing awareness of the
brand but also a sustainable interest.
Ultimately a successful market campaign will need to combine high reach and frequency
but in this instance, in the interest of economy, it is suggested that reach is sacrificed for
high frequency among a targeted segment of early adaptors, willing to try new products
and capable of influencing their peers. In this way, the task of convincing potential
consumers about the benefits of the JO Small Grind Mills falls on peer group opinion
leaders and as such carries considerably more impact at considerably less cost.
Objectives
Increase awareness in general of the Jamie Oliver brand and develop recognition and
recall.
Reach a frequency of at least three times a week among the targeted audience of early
adaptors.
10

11. Segmentation, Targeting and Positioning
Segmentation
Geographic: Valencia community, cities, flat dwelling
Demographic: Young, male, independent, educated, middle class, above average
income
Targeting
MEET JUANJO: Aged anywhere between 25 and 35 Juanjo
is an independent young man, either sharing a flat with his
friends or recently moved in his long term partner. He is
university educated, driven and progressing well in his
chosen career. Technology is important to Juanjo. He has
the new iPhone 4 which he regularly uses to update his
Twitter and LinkedIn accounts. Although Juanjo has an
above average income he is fully aware that there is more to
life than just work so he is constantly on the lookout for new ways of having fun. On the
weekends he enjoys pursuing a range of outdoor activities from hiking to mountain biking
or simply relaxing on the beach in the summer. To save money before going out at the
weekends, Juanjo and his friends regularly have dinner at home, taking it in turns to cook.
Juanjo´s will happily admit his skills in the kitchen are limited but he is not afraid to have a
go and he regularly surprises his guests with new and original creations. He is self-
confident, outgoing an excited about the future even though he is not certain where it will
lead.
Positioning
Although marketing mix must be adapted to the Spanish market it is also essential that it
respects the core Jamie Oliver brand philosophy and image, which is already extremely well
defined.
11

12. The Marketing Mix
Product
Primary Product: Jamie Oliver Small Grind Mills
Benefits: Quick and easy solution to improving meals
Design: Quality upright grinder.
Secondary Product: The Jamie Oliver Brand and subsidiary products
Price
Small Grind Mill – RRP: €2.99. Subject to price promotions.
Place
Currently on sale at El Corte Inglés but needs to increase its presence and gain listings in
other, more accessible supermarket chains. The principal supermarket chains are;
Carrefour, Consum, Aldi, Eroski and Al Campo. (Mercadona has not been included due
to its over-emphasis on private label brands)
Promotion
The principal form of promotion for the JO Small Grind Mills should be an aggressive
pricing strategy, either through attractive discounting or giveaways with a minimum
order quantity. This shall be supported by heavy P. of P. sales promotion in the form of
leaflets, display stands and sample packs, ideally incorporating the whole JO herbs and
spices range.
It is also suggested that a strong element of public relations is incorporated into
marketing mix helping the target audience to familiarise itself with the breadth of the
JO brand. Suggested publication are supermarket magazines such as the El Corte Ingles
Club de Gourmet monthly publication.
12

13. The Retail Environment – Key Factors
More Supermarkets
According to the Ministry of the Environment, Rural and Marine Affairs (MARM) there are a
total of 17,000 modern grocery retail stores in Spain, 70% of which are supermarkets. The
supermarket sector has experience the highest growth in recent years. Last year 70% of store
openings were supermarkets against 10% for the hypermarket format, (source: Alimarket
2010). Mercadona is the market leader in the supermarket format and in order to compete,
traditional large distribution groups such as Carrefour have reevaluated their strategies to
focus on the smaller, convenience format.
More Private Labels
As consumers become more price sensitive they are opting for cheaper, but generally reliable,
private label products. AC Nielsen estimates that in 2010 private labels sales represented over
a third of total FMCG sales. In addition NPD launches decreased by over 50% as manufactures
tried to consolidate the sales of existing products with more aggressive pricing strategies.
Strong Foreign Presence
The market has a strong foreign presence, with French and German groups heavily
represented in the Hypermarket (Carrefour and Auchen) and discount (Dia, Lidl Aldi) sectors.
However the supermarket format is dominated by domestic chains (Mercadona and Eroski).
Market Share of Spain´s Leading Grocery Chains
Source: Alimarket October 2009
13

14. Point of Sale
An essential part of the marketing mix will be careful consideration and selection of adequate
points of sale for the JO Small Grind Mills range. Appropriate retailers that combine reasonable
pricing with high quality and convenience must be approached in order to expose the JO range
to the highest possible concentration of our target audience.
El Corte Inglés already stocks various JO products so it is likely that regular ECI customers are
already familiar with the brand. It makes sense to build upon this brand awareness, increasing
the JO presence among all the different ECI formats.
With its commitment to innovation the Carrefour group is the second retailer that should be
targeted in this marketing plan and will be examined in detail below.
El Corte Inglés Group
Why El Corte Ingles?
Group/Banner Nº Stores Sales 09 (M.€) % 08/09
Ranked fifth largest retailer in Spain the
ECI Group offers a wide range of formats Hipercor 356
from hypermarkets to petrol forecourts. Supercor 37
Overall ECI attracts a more educated El Corte Ingles 83 4,630 -5.8%
and affluent consumer in line with our
Opencor 54
target audience.
TOTAL 356
Price Strategy
Traditionally ECI has competed more on quality than price but recently it has had to
readjust its strategy to cope with increasing price sensitivity. As such, in the current climate
ECI represents excellent value for money.
Promotion
It is common for suppliers and manufacturers to be contractually obliged by ECI to carry
out a minimum of 2-3 price promotions throughout the year. Generally suppliers are
expected to invest between 10 and 15% of the estimated annual sales (fixed by the buyer).
Promotions can include: end if aisle displays with 10% discount, promotional leaflets
and/or in-store display units.
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15. Carrefour Group
It should be noted that Carrefour and Dia Group/Banner Nº Stores Sales 09 (M.€) % 08/09
have separate buying departments and logistic
Carrefour 281
systems so cannot really be considered
together. For the purposes of the marketing Dia 2,814 14,296 -7%
plan we shall consider Carrefour exclusively.
TOTAL 3,095
Why Carrefour?
In 2009 Carrefour was Spain's second leading grocery retail group having been overtaken by
Mercadona. To remain competitive they have developed three new formats: Carrefour Mini-
Hypermarkets (a compact version of their star format), Carrefour Market (the supermarket
range) and Carrefour Express (inner-city convenience outlets). Carrefour Express branches
are small neighbourhood stores similar to the Tesco Express format with an average size of
450m2 and stocking roughly 4000 references. Convenient, innovative in terms of NPD and
reasonably priced the Carrefour Express branches fit well with the buying habits of our target
audience and form an essential of the marketing mix.
Price Strategy
Carrefour positions itself and the market leaders in product innovation, keeping up to date
with the latest purchasing trends so are ideally suited for introducing a new concept such as
the JO Small Grinder Mills. They have seven private label food ranges making up 30% of their
annual sales in 2009 (Alimarket 2010) in contrast to Mercadona where the figure is over
50%.
Promotion
The annual value of promotion support is amongst the highest in Spain and can reach 23%
for branded products. Manufactures are expected to launch 3-4 promotions a year. Common
strategies are “3 for 2”, second unit with 30-70% discount and in-store leaflets.
End of aisle displays can cost up in the region of 400 – 500€ per store for 1 week.
Listing fees are common but can vary depending on the product. On average the fees are
between 8,000 and 10,000€.
N.B: It is worth noting, when considering the full Fiddes Payne range that Carrefour holds a
Disney license agreement for its “Carrefour Kids” product line.
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16. End of Aisle
End of Aisle
Implementation
March
March
Stores in Valencia Community
February
February
90
80
J amie Olive r Small Grind Mills - Ye arly Pric e Pro mo tio ns
J aime Olive r Small Grind Mills - Ye arly Pric e Pro mo tio n
End of Aisle
70
31 Carrefour
November December January
November December January
60
Group
50
40 29
10 % O f f
30 ECI Group
22 50
20 12
10 7 8
2 1
0
10 % O f f
September October
September October
Yearly Media Schedule
3 for 2
Obtaining a listing for the JO Small Grind Mill range in a large
supermarket chain often implies certain yearly promotional
obligations, in many cases at least three times a year.
August
August
A marketing schedule must therefore be developed to effectively
3 for 2
control this process and ensure that all marketing
July
July
communications maximize the product exposure.
End of Aisle
A guideline campaign has been designed to give the brand
June
maximum coverage throughout the year. The Carrefour outlets June
will be the subject of a “guinea-pig” campaign owing to its
smaller market share and fewer stores within the Valencia
May
May
Community. A month later, allowing time for evaluation and
End of Aisle
improvement a “copy cat” campaign will commence among the
more abundant ECI outlets. This will also help to avoid a
April
April
pronounced peak and trough sales pattern and will provide
steadier cash flow throughout the year.
ECI Gourmet
Carrefour
In addition, a quarterly ECI Gourmet magazine campaign will run
simultaneously to the in-store promotions lending greater
Name
ECI
frequency to the campaign and positioning the products within
the high quality sector.
Price Promotion
The promotional year will end in March 2012 with maximum
Magazine
Promotion
exposure among all media and results will be collected and 16
analyzed for the following year.

17. Sales Objectives
Monthly Sales Targets: 2011/2012
It is hoped that the campaign will achieve a turnover of approximately € 50,000 in its first year but
with ECI's 50 stores in the Valencia Community in contrast to Carrefour's 31, it is not expected that
monthly sales are distributed evenly between the two retailers.
We see below estimated monthly sales targets for year 1, with notable peaks at Christmas and
throughout the year in harmony with the various price promotions and media communications
included in the campaign.
4000
3500 April May June July August September October November December January February March
3000
2500
Magazine Magazine Magazine Magazine
End of Aisle 3 for 2 10 % O f f End of Aisle
2000
End of Aisle 3 for 2 10 % O f f End of Aisle 3 for 2
1500
1000
ECI
500 Carrefour
0
Monthly Sales Figures
April May June July Aug Sep Oct Nov Dec Jan Feb Mar TOTAL
ECI 1250 1750 2500 2000 2250 3250 2500 3000 3750 2250 2500 3000 30,000
Carrefour 1000 750 1250 1500 1000 1500 2250 1750 3000 2000 1750 2250 20,000
TOTAL 2250 2500 3750 3500 3250 4750 4750 4750 6750 4250 4250 5250 50,000
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18. Monitoring and Control
As is the case with any FMCG marketing strategy the ultimate measure of control will be seen
in the sales volumes achieved throughout the life of the campaign. If monthly sales targets are
regularly met and/or exceeded it is natural to assume that the campaign has been a success.
However from a long term perspective it is also crucial to evaluate the perception of the brand
among not only its current buyers but also those who have the potential to become loyal
consumers.
Big supermarkets regularly carry out taste testing's in focus groups and it will be important to
liaise closely with them to discover feedback. It is also proposed that a series of focus groups
be established throughout the course of the campaign among the public to discover, monitor
and control people s awareness of and attitudes towards the Jaime Oliver brand.
This Marketing Report has been carried out by Messum Export on
behalf of Jasa Internacional S.A. and Fiddes Payne.
For more information contact us on info@messumexport.com