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Going Tomotoes

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Going tomatoes JANUARY 6, 2013 BY AYESHA HODA
By Ayesha Hoda
Published in Aurora Magazine (September – October 2012 issue)

The ketchup category has seen advertising activity recently and there are lots of tomatoes to be found whether you switch on the TV or look at a billboard.
The story of tomato ketchup in Pakistan began with Mitchell’s – a food brand that dates back to the 30s. The category has changed significantly since and more brands have entered the market. Today, the category is populated by names such as Bake Parlor, Knorr, Mitchell’s, National Foods, Shangrila, Shezan, and international brands like Heinz.
According to Adnan Malik, Head of Marketing, National Foods, the tomato ketchup category is worth three billion rupees (Source: A C Nielsen) and his brand accounts for 51% of the share. He says that there is a 70% penetration of this category in consumer segments A1, A2, B and C. In sharp contrast, the penetration levels go down to 30-40% in B, C and E.
Since the 90s the strategies for ketchup brands have evolved. Inflation and the economic downturn have seen cuts in consumer spending and brands have turned to offering their customers convenience and economy.
To this end, Shangrila (established in the late 80s) introduced a 100g sachet in the late 90s and became the first company to launch pouch packaging, a development that raised the bar among competitors and also brought the price down, helping develop a market for ketchup among a wider public.
National Foods quickly followed suit and today claims to be the leader in this format. Pouches account for 60% of the company’s sales and even consumers who are not price sensitive and previously preferred bottles, have accepted pouches due to their convenience.
At Mitchell’s, although concentration on pouches has recently increased, glass bottles still account for a 40-50% share of their sales.
Pouches come iin three sizes: 800g, 400g and 250g, and glass bottles in two: 500g and 280g. For all the brands the large (800g) pouch is priced at about Rs 150 whereas the large (500g) bottle is about 10-15 rupees cheaper. However, there is a smaller quantity of ketchup in the bottle, therefore by paying a little extra, consumers get more ketchup, making the pouch more economical.
Most ketchup brands are concentrating on younger consumers, because, says Malik, “We are a a young nation and the trend of having snacks with ketchup is growing.”
However, a major challenge is to ensure that the brand appeals to everyne, including housewives and other influencers.
In terms of advertising strategy, National Foods, Shangrila and Mitchell’s all seem to be focusing focusing on the main ingredient – tomatoes.
National Foods originally positioned (before 2008) their proposition around fun. However, in 2008, the package design was changed to emphasise the fact that the product was made from 100% pure tomatoes, with the focus of the communication turning towards flavour and purity of the ingredients. The company’s recent ad campaign is also based on ‘The real tomato experience’.
According to ad agency IAL Saatchi and Saatchi (National Foods’ creative agency), the new campaign capitalises on benefits such as purity, quality, convenience and economy through tempting shots of food and tomatoes. The campaign was leveraged to television, retail level (POS) and gondola/displays at shops.
Shangrila leverages print and outdoor and does not advertise on TV or radio as the company believes it is against sharia’h to do so, which is why, according to Erfan Mirza, Brand Manager, Shangrila, the brand has a low share of voice compared to its competitors. Yest, he says that Shangrila is still considered Pakistan’s number one tomato ketchup.
Compared to National Foods and Shangrila, Mitchell’s ad spend was relatively low until about three years ago, because of a focus on infrastructure development. However, advertising activity has picked up since. Zakria Fawad, Account Manager, Lowe & Rauf (Mitchell’s creative agency), says the current ad campaign for Mitchell’s tomato ketchup (Bin khaye raha na jaye - originally released in 2010) stresses the fact that the product is made from the highest quantity of tomato pulp.
Fawad adds that “strategically, we decided to target the younger age group as they are the primary users/influencers but we also incorporated the primary buyer, the mother.”
In addition to the TVC, Mitchell’s is exploring non-traditional marketing avenues. It currently sponsors a food magazine called Chef Special and Chef Zakir’s annual cookbook. The brand has also opted for content integration on Dawat on Masala TV.
Faiza Iqtadar, Media Planner at Maxus Global (Mitchell’s media agency) says, “The brand’s media strategy is to increase awareness, create recall and promote its discounted offer.”
Overall, things look good for the ketchup brands. All the major players have become more aggressive on the marketing front and the size of the market is growing simultaneously. These brands are also looking to explore more consumer segments. Hamid Mukhtar, Assistant Brand Manager, Mitchell’s Grocery Products, for example, says that Mitchell’s has recently changed their penetration strategy from A+ and A consumers to target people in the B and B+ range.
However, as more ketchup brands are providing more options to snack lovers, the big brands may need to think of new ways to differentiate their product apart from the claim of being ‘natural’. They will also have to come up with more innovative media mixes to remain relevant and appeal to various consumer segments.…...

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