The Irish Dairy Board in Africa John Jordan, Marketing Director Wednesday 16th June 2010 Agenda • Who are the Irish Dairy Board? • The Irish Dairy Board Brands • The Story of Africa • Why • How • What • Key Success Factors 2 Who are the Irish Dairy Board? • We are: – Privately owned – Shareholders are the Irish dairy processing businesses – Through them we are owned by the Irish Farmers – An annual turnover in excess €1.8bn – Exporting Irish dairy products to over 90 countries – Employing over 3,800 people globally – Structured into 3 business areas Irish Dairy Board Co-Op Food Ingredients Consumer Foods DPI The Irish Dairy Board Brands 5 Irish Milk Production 2003 - date 800 700 Million litres 600 500 400 300 200 100 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Three key product categories Cheese Milk powder Butter & butter blends 7 Irish Dairy Board Portfolio of Retail Brands 8 North America Western Europe Eastern Europe • 2 Countries • 13 Countries • 4 Countries Middle East Caribbean • 3 Countries • 7 Countries Africa Asia & Oceania • 14 Countries • 5 Countries South America • 2 Countries Kerrygold present in 50 markets 9 Brand personality in execution Irish, taste, natural Irish, natural, humour Irish, community Humour, taste Irish, community 10 The Africa Story • Why choose Africa? • How to get started? • What are the key success factors? 11 Finite Fragmented Fragmented growth Early liquid Subsistence Powder Distribution / Retailer Consolidation Consumer Sophistication Product Mix Expansion Consolidated developed Target markets & audience • African region • • • • • Democratic Republic of Congo (DRC) Angola Malawi Zambia Algeria • Target audience • Mothers with children • Desk based research • Meet the players • Walk the street – but be careful! • Watch the consumers • What are the drivers of purchase decision • What needs are being met • Are there secondary needs to consider • Steal from the competitors Competitor analysis The Product Mix • Product format • Is it fit for purpose • Do you have a USP • Packaging options • Fit for purpose • Pricing models • How much risk versus reward do you want • Brand support and communication 16 Brand Communication • IDB wanted to retain control • A campaign that was transferable across countries and languages and must be locally relevant • To achieve this execution is photographic • Ogilvy Africa had experience in Pan African campaigns “Full Marks” - Algeria 48 sheet Outdoor – Oran & Clef Bus backs & six sheet posters “Full Marks” – Angola / DRC 48 Sheets & larger outdoor - DRC 22 DRC 23 Outdoor - Angola Outdoor São Paulo 1 Malange 24 Bus-Shelter - Angola 25 Outdoor Rocha Pinto_Rotunda da Padaria 26 Angola Delivery Van 27 Kerrygold 2010 Calendar 28 Soccer Stadiums 29 “Full Marks” – Zambia & Malawi 30 • Distribution • Can you get your product to the point of purchase • There is no planogram • Commitment to your brand • • • • It can be a long haul Consistent quality Invest Show respect Everything in the rear view mirror can be strategic but if people are honest you need a stroke good of luck as well! • Feet on the street • You must know the market as well as your distributor THANK YOU Wednesday 16th June 2010