How investors see and evaluatebrands

Tomaž Blatnik

Arik Gilboa

HappyPek - case study

Blatnik bakery

• Family bakery established in 1990 in Videm in Dolenjska

• Owners are Tomaž and Anica Blatnik• Total turnover in 2008 was 20,6 mio EUR• Having 6 franchising TUŠ shops in Dolenjska

and Central Slovenia• Having 4 Blatnik retail shops• 23 Mobipek (door to door),• 4 HappyPek bakery&coffee shops, • Number of employees: 228

Evaluating brand

Measurable criterias

• awerness - mainly top of mind

• share of market by retail audit

Unmeasurable criterias - Emotional criterias

• To become beloved brand with unique value

• To have perception by consumers beyondproduct

Process (1)

Writing our vision, values and detailed mission

• Estimate market size and SOM of main playersin bakery category

• SWOT analysis of Blatnik

Process (2)

Analyzing numbers of brands in “Blatnik house”

• Preparing briefs for tender in order to choosemarketing agency

• Choosing our creative partner

• Choosing our research agency

• Analysis of all data

• Creating Blatnik unique story

Process (3)

• Based on the story creating our identity

• Creating product portfolio and communicationtools

• Choosing the right PEOPLE to be responsiblefor the process and to make it happen

• Convince managers and employees to believeand to follow new philosophy of business andmarketing concepts

IMPLEMENTATION!!!

Goals of research

• Who are Slovenians (what makes them happy, whatmakes them cry, etc.)

• To understand what is the feelings of bread forSlovenians

Tools and metods(1)• Focus groups in Ljubljana, Maribor and Koper (total 6)

• Etnographic research in central of Slovenia

Tools and metods (2)

• Long talks with Anica and Tomaž Blatnik to understand their unique way

• We tried to find some unique charasteristic ofthe entire Blatnik family by generations

• Research regarding market size and MOS in bakery category

Market share by segments- volume (t)

* Data for March 2009** Market share is not calc.by retail audit but by sales*** Total is 155.548.000 t

65%

50%

65%

45% 45%

60%

15%

25%

20% 20% 20% 20%

15% 15%

5%

35%

30%

15%

5%

10% 10%

0%

5% 5%

0%

10%

20%

30%

40%

50%

60%

70%

ŽITO MERCATOR MLINOTEST SPAR BLATNIK OTHERS

Bread

Small Bread

Frozen bakery

Packed bread

Market share by segments – value

46%

33%

51%

25% 26%

42%

19%

30%28%

20% 21%

25%

30%

28%

11%

55%

49%

29%

5%

9%10%

0%

4% 5%

0%

10%

20%

30%

40%

50%

60%

ŽITO MERCATOR MERCATOR SPAR BLATNIK OTHERS

Market share by segments – value

Bread

Small Bread

Frozen bakery

Packed bread

* Data for March 2009** Market share is not calc.by retail audit but by sales

Market size by regions as producers

30,5 30,5

20

60

30,527 27

2,5 2,5

27

13 13

2,5 2,5

13

8,6 8,6

2,5 2,5

8,69,7 9,7

2,5

30

9,711,211,2

70

2,5

11,2

0

10

20

30

40

50

60

70

80

ŽITO MERCATOR MLINOTEST BLATNIK OTHERS TOTAL

Volume (t)

CENTRAL

PREKMURJE ŠTAJERSKA KOROŠKA

SAVINJSKA

GORENJSKA

DOLENJSKA

GORIŠKA OBALNO KRAŠKA

* Data for March 2009** Market share is not calc.by retail audit but by sales*** Total is 120.000 ton

30,5 30,5

20

60

30,5

27 27

2,5 2,5

27

13 13

2,5 2,5

13

8,6 8,6

2,5 2,5

8,69,7 9,7

2,5

30

9,711,2 11,2

70

2,5

11,2

0

10

20

30

40

50

60

70

80

ŽITO MERCATOR MLINOTEST BLATNIK OTHERS

Value (mio. eur)

CENTRAL

PREKMURJE ŠTAJERSKA KOROŠKASAVINJSKA

GORENJSKA

DOLENJSKA

GORIŠKA OBALNO KRAŠKA

Market size by regions as producers

* Data for March 2009** Market share is not calc.by retail audit but by sales*** Total is 155.548.000 eur

Market share - sandwitches

3

2,5

2,51,5

5,5

Volume share of a sandwich category of big players(mio unit)

DON DON

BLATNIK

MARCHE

MLINOTEST

OTHERS

* Data for March 2009** Market share is not calc.by retail audit but by sales

Key accounts

40%

23%

17%

10%

10%

Volume share of a bakery category of key accounts (t)

MERCATOR

SPAR

TUŠ

DISCOUNTERS

OTHER

* Data for March 2009** Market share is not calc.by retail audit but by sales

Results of all analysis (1)

• Blatnik is not as big as Žito, Grosuplje, Mlinotest, Spar

• Not as small as corner bakery shop

• We found out that we are considered as goodquality but with fluctuations

• We found out that Slovenians have repressedhappiness and that perception of bread forSlovenians is goodness of life

GOODNESSIf bread needs And Slovenians need

HAPPYNESS

GOODNESSWe need someone to spread To make people of Slovenia

HAPPY

Results of all analysis (2)

• We actually have no brand because we have 4 “brands” (Blatnik, Mobipek, Mala malica, Krušna peč) and the total market share is only3%

• And also we do not have enough financialresources to support and maintain 4 brands

Decision

• That our vision will not stay a dream! We willcreate our unique identity and we willcommunicate with Slovenians and via them to the region and to the world

• To have an emotional umbrella brand in orderto maximize results to shareholders andsatisfaction&happinnes to all stakeholders

HAPPYPEK BRANDstory and concept

It was created by Leo Barnett Serbiatogether with Blatnik owners andmarketing team

So… let us share with you our unique story, main communication tools and productportfolio

HappyPek story

Our product portfolio

Čopova ulica

Njegoševa ulica

DoubleDecker - BTC

Communication tools (1)

• Everything will be under umbrella brandHappypek

• We will create our bakery shop by three mainsegments under Blatnik ownership andfranchising: HappyPek, HappyExpress, HappyHiša

• We will have unique branded secondary positionin the biggest shops of Mercator and Tuš withunique branded bread

• We will enter more to unique branded frozenproducts (not as same as other big players)

Communication tools (2)

• We will enlarge our sandwich business underHappyMala malica because this can help to built the brand in shorter time

Consumers can find our sandwiches in allPetrol station, Mercator and soon in Spar

• We are using all traditional and digital PR withfull cooperation of Pristop Slovenia

• We want to thank to Leo Barnett Serbia, Pristop Slovenia, HappyPek marketing teamand special thanks to marketing managerBoštjan Draženovič and Dejan Jelisavac to prepare this presentation

We hope you enjoyed it…

as our mission is to bring more happiness to the world and we hope we made it also withall of you today, tommorov and…

Always remember!