TOLARAM GROUP

presents
STRATATHON

A Strategy Case Study Competition

Indian Institute of Management Lucknow

Indomie Instant Noodles came to Nigeria in 1988 when Mr. Haresh Aswani, Tolaram Group, MD imported the first container from Indonesia. First
manufacturing plant was set up in 1996 by De-United Foods Ltd (a subsidiary of Tolaram group responsible for manufacturing and marketing of
Indomie) and since then, Nigeria, which was a typical non-noodle eating nation, has come a long way and is now the 11th largest nation in the world in
terms of per capita consumption of instant noodles.

The story of Indomie is synonymous with developing the instant noodles category in Nigeria so much so that Indomie has become a generic brand name
for the category in general. Since its inception in the country, Indomie has become the favorite food brand among the children aged 4-12 years and their
corresponding mothers. All marketing campaigns (ATL/BTL) have been focused towards this target audience with brand positioning around being the
loving and caring brand. Indomie is also revered for some of its exemplary campaigns and commercials with great recall and strong emotional engagement
(see TV commercials on Indomie Nigeria YouTube channel) among its target audience.

IMG 1.1: The progression of thematic campaigns targeting kids (4-12 yrs) and mothers
With a dominant market share of 61% and strong brand equity index (BEI is a measure of brand performance which measures how often consumers are
ready to buy and recommend the brand and what is their willingness to pay premium for the brand) of 7.6, Indomie has been able to grow the category
penetration from almost nothing to 80% currently (category penetration is defined as number of households who consumed instant noodles in last 3
months).

With such strong brand parameters and a highly penetrated category, the marketing managers of Indomie were looking to find the roots of the next phase
of Indomie growth story. While analyzing the consumer research data from AC Nielsen and Kantar World Panel, the marketing managers of Indomie
tumbled upon a striking piece of insight. 75% of consumption of Indomie was happening amongst consumers aged less than 18 years.

Moreover, there was a clear indication that though Indomie is a very popular brand and top food choice among kids, there was a clear attrition of consumers
from category as they passed the age of 18 years. Constituting 52% of the Nigerian population, Indomie was clearly losing out on a huge chunk of consumers
who were switching to other food categories after having relished Indomie during their childhood.

Looking at this huge opportunity, the marketing managers of Indomie now decided that they now clearly need to talk to this population segment to grow
the category and the brand to the next level. They narrowed down this population segment to the young adults (18-25 yrs of age) to build on the relationship
with the young generation. They, however faced a very difficult and pertinent predicament: how to target this new group of young adults while retaining
the loyalty among their primary TG: kids (4-12 years) and their corresponding mothers.

As a newly appointed marketing manager of Indomie Nigeria, you are required to come up with an exhaustive and robust marketing strategy including
ATL and BTL activities to solve this issue. You can do research and quote examples of how other brands have achieved a similar feat across the globe.
Feel free to use various primary/secondary data and kindly mention the source.

However, you can also drop us an email to know the answers to any specific question that you might have to solve the case. We have also provided a
brief of Tolaram group to help you understand the group better.
Submission Guidelines

 The deadline for submission is 2100 hrs, Oct 30, 2018

Round 1:

 A 1-page executive summary has to be submitted. Use of tables, etc. is allowed

 Additional information from online and offline sources can be used to solve your case and is encouraged in order to make your plan more
implementable
 Font style to be used is Arial and font size should be 10
 The submission should be a PDF file at dare2compete.com
 Naming convention to be followed: <Team Name>_<College Name>_Stratathon_R1

Round 2 (on campus final round):

 The final presentation will be a Power-point deck (.pdf/.ppt/.pptx)

 The presentation should not be more than 5 slides
 Further details will be informed in due course

Evaluation Criteria
 Exhaustive understanding of the case scenario and context
 Depth of analysis of industry & key challenges - Novelty, feasibility and practicality of ideas proposed
 Structure of presentation & clarity of ideas conveyed
APPENDIX
An Introduction
I. Global Introduction
 History

Seth Tolaram Khanchand Vaswani (Seth Mohan Vaswani

was a physician in Tolaram’s youngest son) migrated to (Khanchand Vaswani's son)
Sindh province, India Malang, Indonesia and established joined the business in 1957
(now Pakistan) Tailor Tolaram in 1948 and is the current Chairman
 Core Values

TRUST
we are honest and direct in our dealings and always act with
transparency
 HUMILITY RESPECT
we always endeavour we respect our heritage, our
to keep learning; we stakeholders, and our
always let our universe; we always seek a
actions speak louder win-win outcome
than our words

COMMITMENT
COURAGE we are committed to being
we want to surround sustainable over the long-
ourselves with bold term through focus and
thinkers, and depth in everything
to always act that we do
with conviction

Our Vision
To create sustainable value for all our stakeholders
 Our Vision & Mission
Vision and Mission

Our Mission
To be a Consumer Goods & Services Leader in Africa and Emerging Asia

Our Mission
To be a Consumer Goods & Services Leader in Africa and Emerging Asia
 Tolaram
Family Trust

Vishu Adnani Mohan Vaswani Sajen Aswani

T-Seven 75%
Limited Seven Family
Ultimate Hold-Co Trusts

Sonny Aswani Haresh Aswani

Tolaram Inc Tolaram Group Inc 25%

Wealth Hold-Co Business Hold-Co Ishk Tolaram
Foundation
Raj Vaswani Tom Vaswani
Professional Executives
 2010s
Brand builders across
Consumer Goods & Services

2000s
Forays into Digital Services, Energy, Infrastructure

1990s
Further country diversification

1980s
Diversification of businesses into Consumer and Real Estate

1970s
Entry into Textiles Manufacturing and internationalisation of business

1950s
Expansion into Textiles Trading

1948
Tailor Tolaram founded
Current Presence
 Consumer Goods Consumer Services

"Uber" for Consumer Services

Data-Driven Consumer Finance

Infrastructure

Lekki Deep Sea Port Lagos Free Trade Zone MBH Power (Transmission & Distribution EPC)
 Blue-Chip Partners
Vision and Mission

Salim Group (Indonesia) entered into a 50-50 joint venture with Tolaram in 1995. The JV entity
Dufil develops, manufactures, and markets instant noodles under the Indomie and Minimie brand
names in Nigeria and Ghana. Apart from instant noodles, the JV produces a diverse product
portfolio including snacks, edible oils, pasta and flour.

Arla Foods (Denmark) placed its current and future business for West Africa in a 50-50 JV with
Tolaram in 2014. The JV entity TG Arla imports and packages dairy products under the Dano brand
name.
 Kellogg Company (USA) entered into a 50-50 JV with Tolaram in 2015 to expand in the cereals and
snacks categories in West Africa. In addition, the JV develops, manufactures and markets Instant
noodles under the Kellogg’s brand name across Africa and Asia. As part of the JV, Kellogg Company
also acquired 51% of our distribution-co in Nigeria.
Africa – Consumer Strategy

11
 History Establishing Household Brands

Evolution of Products in Market

Future…
Snacks
Beverages
Biscuits

1995 2011 2012 2013 2014 2015 2016 2017

Going forward in Nigeria and Ghana…

• Continue to dominate in instant noodles; current market share is 70%+
• Continue to establish a strong position in the snacks category
• Enter new product categories with low market penetration and/or high growth potential

Going forward In other major African markets…

• Introduce product base into new African markets; South Africa and Egypt recently launched
• Future expansion into East African markets, starting with Kenya
Pillar 1: Localised Manufactu
 Pillar 3: Brand-Building

TV Commercials Radio Commercials Social Media

ATL

BTL

Market Fan Clubs OOH Branding

Trade Promos Consumer Sampling
Activations

BHT, RETAIL AUDIT CONSUMER PANEL AUDIT

 Key to our products’ success

3 Strategic Pillars Key attributes

Localised manufacturing

Deep Distribution Network Successful FMCG Product

Brand Building
 Notable Successes

90% market share

hypo is now synonymous

Households using bleach grew
with household sanitation
from 2.7% to 27% in 4-years
in just 4-years since launch

Dano is the #2 milk powder brand in Nigeria

DOUBLED volumes within one year of creating the JV

 Notable Successes

#1 Top of Mind Awareness amongst all edible oils in Nigeria in 2-years since launch

Power Oil Devon Kings/Kings Turkey Unbranded Grand Gino Mamador Wesson
41

28 9
7 6 5 3 2

Sold 1 million cartons within 6 months of launch!

 Notable Successes

Kellogg’s cereals capacity of 10,000 MT in Nigeria sold-

out within 6-months of factory opening
Sampled 1.4 million kids in Q1 2018 while covering 12,000 schools
 Notable Successes

Creating market demand via N50 single-serve

 Start of
Inauguration of Kellogg’s
Kellogg’s Noodles
Cereals
production in Egypt
Plant in Nigeria

Acquisition of
Dangote Noodles
in Nigeria Launch of
& DFP Pasta Assets Kellogg’s Noodles
in Ghana in South Africa
and Egypt