UNIVERSIDAD

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CASE: ALACENA*
GRAND EFFIE 2000 - New Products Launching Category Market Scenery The Peruvian market of mayonnaise was very attractive because: i) sustained annual growth despite the crisis; ii) strong potential to development due the low per capita consumption of 80 g /year versus the rest of the region (eg, Bolivia 290g, Colombia 400g, Venezuela 1100g, Chile 1900g)), iii) persistence of 41% of families still preferred or only eats homemade mayonnaise. Research showed that consumers thought the homemade mayonnaise as the best, to be perceived as more natural, with the excellent taste "homemade" characterized by "right quantity of lemon." Previous attempts of other brands to appropriate this concept have not had success to date. The category was historically dominated by two strong well established multinational brands, "Hellmann's" of Bestfoods / Lever with 58% market share and "Maggi" Nestle with 29%. Alicorp SAA decided to compete in the category of sauces based on their strengths in the production of cooking oils (cooking oil is the key ingredient in mayonnaise) and the solid strength of its distribution force. Marketing Strategy and Launching The launching of mayonnaise AlaCena of Alicorp has followed by a process of defining a solid positioning, product design, superior packaging, solid business strategies, effective advertising, impeccable quality and fast execution. The positioning choice "to be the most delicious mayonnaise due its preparation with an authentic homemade recipe that has the right quantity of characteristic lemon. The pricing strategy for AlaCena was parity with its main competitor Hellmann's, to be consistent with the brand equity that Alicorp wants to build for the product. There was no discount to the commerce. The advertising, implemented by Leo Burnett, convinces young people and housewives, that AlaCena mayonnaise is the most delicious, since it is made with authentic homemade recipe, with an ideal quantity of characteristic lemon. The focus of the selling line was chosen: "Mayonnaise AlaCena, the delicious taste of home". The challenge was to create a very attractive advertising to young people, but not alienate the housewife of 30+, and vice versa. The company launched a TV advertisement called "Fast Food", which dramatizes that the delicious AlaCena flavor makes you feel at home.

Case prepare by Estuardo Lu, MBA - Marketing Professor ESAN University, Lima Peru.

The main sales promotional activities stimulated product test with consumers: i) tastings and sample-sale promotion for a week of 1 doypack 100cc per person in Supermarkets in Lima; ii) Promotion coop in-pack in Bimbo bread (2 sachets of 10cc) for 2 weeks; iii) Sell of 10cc sachets to fast-food franchises (Burger King, Bembo's, KFC, etc.) and chicken restaurants (Norky's and Rocky's) for distribution to local customers and delivery; and iv) Sampling and selling door-todoor in a 100cc doypack in Lima and other important provinces capital cities. Results and Achievements AlaCena got the leadership of the category with 45.1% market share in June 2000 (with 3 months of having being launched), displacing Hellmann's from 59% to 31% and Maggi from 29% to 17%. With a penetration level of 55%, a buyback of 58% and an increasing trend with unsatisfied demand limited by production capacity. Once resolved supply constraints, participation would be on a platform of 60% of market share. Furthermore, as expected, there was a projection of growth of 70% in the category comparing it with the previous year's level. In July, AlaCena reached a Top of Mind of 54%, beating Hellmann's that decreases from 61% to 32%.

Case prepare by Estuardo Lu, MBA - Marketing Professor ESAN University, Lima Peru.