Presented for representative By Sivan Group August 2012

The Marketing Plan

The Goal of the Marketing plan:

Building Brand awareness among cooking lovers and presenting the brand as a favorite for retailers to present at their shops.

Whom do we turn to?

Several Audiences
Home kitchen
Professional kitchen

Home Chefman

Home Chefwoman

Hotel chefs

Catering chefs

Restaurants chefs

Kitchen Managers Steadily growing market

Purchasing managers

large and important repeat customers

Different segments: motivation, characteristics, needs, level of knowledge

Professional kitchen
Are knowledgeable about knife brands , with specific requirements from products and services to manage their kitchens. Hectic job makes the service as important ingredient when purchasing. The price is important as the purchase is big and often. Looking for one stop shop.

Good treatment Availability Trouble-free replacement

Familiarity with the sharpener Service that takes and returns

Trial period

Comfortable

Knife quality

Reliable service

Easy Sharpening

Experience

Brand name

Home Kitchen
Our home audience are mainly man. The cook enthusiastic are divided into two groups: the one who knows what they need, ones that doesnt know. The ones who know will look for a good deal. The ones who doesnt know will buy according to the salesman recommendation. Both groups are sensitive to publicity.

Man/ woman

Comfortable

Perceived Knife quality

Experience

Brand name

Home kitchen Trend Professional kitchen over the years At 2009 the knifes were sold to hotels, restaurants and caterers by large numbers. They used to buy the whole series to run their kitchens. Today, hotels, restaurants and caterers will purchase a single knife for their top chef as a special treat, while using the economical series/brands for the rest. Until 2009 there were no awareness of knife brands. The cooking enthusiastic trend was in the beginning step and a small segment of the population tended to

purchase more expensive knife to their

home kitchen. Today the trend has penetrated large segments of society. People (specially man) tend to invest in their kitchen knife, they wish to own at least one good chef knife.

Our Market

Market size assessment Chef Knives Israel

The assessments are based on conversation with retailers and competitors in the market. (There are multiple sales channels that are not barcoded and abundance of stores across Israel)

15% of household in Israel holds at least 1 chef knife

Lifetime of the knife2 years

Average Consumers price 37 Eur

Sales per year: 150,000 knifes

Market size: 5.6 MIL EUR for 2012

Growth forecasts: about 10% per year for the next 5 years

What is the Chefs choice ?

Perceived Quality

Cheap Perceived price

Premium

Top selling knifes are : Global, (home sector).

& &

, Dick & Victorinox ( the professional sector) and Arcos & Arcosteel

Arcos made a huge breakthrough when entered an open territory of chef knife advertisement. The professional chefs dont usually like working with Arcos though the home kitchen users tend to buy Arcos. Global, & Victorinox are known for their quality and service and are preferred brands with both

professional chefs and cook enthusiastic with professional knowledge.

A lot of the professional chefs bring their own knife to work as they are loyal to their own knifes

Price n/s (euro)

Chef Knife
Wusthof
Gourmet 20 Gourmet 23 Grand prix 20 Grand prix 23 La cordon blue 20 La cordon blue 23 Classic Ikon 20 Classic Ikon 23

Price comparison between chef knives according to brand & series

286 (57 EUR) 313 (63 EUR) 493 (99 EUR) 530 (106 EUR) 500 (100 EUR) 540 (108 EUR) 536 (107 EUR) 575 (115 EUR)

Arcos
155 (31 EUR) 315 (63 EUR) 350 (70EUR) 376 (75 EUR) 500 (105 EUR) 585 (120 EUR) Universal 20 Clasica 21 Clasica 23 Teranova 20 Kyoto 21 Titanuim 18

Global
445 (89 EUR) 700 (141 EUR) 700 (141 EUR) G 20 GF 21 G 24

THE MARKETING PLAN

The plan combines: Organized Sales forces to the private sector. Organized Brand management to private sector. Media publicity (T.V) sponsorships and marketing content. Public Relations. Sales promotion actions and sales activity on points of sale. Marketing activity via social networks , Blogs and Israeli cook sites.

GOALS
2013: entering 50 well known specialized stores in the market (total of 200 stores).

2014: increasing penetration Additional 30 stores

2015: representation at 120 specialized known stores

2016: Natural grow as the trend is deepening

Retail sales of 0.4 mil EUR

retail sales of 1 mil EUR

retail sales of 1.5 EUR

retail sales of 2.1 mil EUR

Market Potential
2013
2014 2015

2016

Selected series to promote

The Ridge knife has no competition as there is no such knife in the market. Will be used as an anchor for differentiation!

Marketing Strategy
The Israeli market is rather virgin : There aren't many brands existed. There is no brand awareness in that sector.
Till today there is no clear positioning for chef knife brands in Israel So there is a vast scope of activity. The creation of clear differentiation can be easily achieved based on assessing distinct utility value for the brand.

Based on the above mentioned we decided to brand chef knives with the functional message:

The best knife for meat/ fish.

The Supplementary message will be:

Life guaranty !
*message with a great value for the Israeli consumer in general and for chefs in particularly

The Brand Message BEST KNIFE FOR MEAT!

Enabler

Loyalty & Association

Brand Awareness

Brand Quality

Brand Loyalty
Brand loyalty and preference

Brand Association
Association with relevant life events

Brand Equity model / David Acker

The brand positioning will be the base for the strategic advertisement plan

Advertising strategies

Brand position

BEST KNIFE FOR MEAT!

The sale will be:

Sales channels
Specialized stores for kitchen and cooking ware. chains like :

Main Rivlin store in TLV. At the shop there will be open an national sharpening center which will be an attraction on its own. Housewares shops across Israel. On- line websites. via cooking academy schools for graduates. Promoting the brand as part of a deal of other complementary kitchen and serving products.

Rivlin re-sharpening center

A specialized sharpening center which will provide sharpening services and will make purchasing the brand more attractive. Each sharpening will cost 7-8 EUR A specialized known sharpener is a customers need. The center will attract customers to the store and will promote other brand products.

Sales & Brand Management

Wustho Brand Manager

Business Development

Campaign Management

Marketing activity at selling point

Continuous presence at social networks

Partnerships

Sales
Private Sector
The first stage will be based on distribution using a well known external distributor which delivers range of products to a variety of stores.

The distributor will work according to sales goals and agreed profit

Advertisement

What do our competitors do?

commercial
Radio commercial

billboards

TV add

http://www.youtube.com/watch?v=MAS0LjXRTXs&f eature=autoplay&list=UU_bATjCzAkjhJa2vgDw8Yhg& playnext=1

On line
facebook

Youtube channel

sponsorships
Prime time TV News brake Prime time TV

Chefs academy

workshop for home professional chefs

Marketing Content implementation

Iron Chef Israel

Case study
sales

Prime time

Cooking shows

radio

billboards

internet

2009 Arcos were an unknown brand for the Israeli market until 4 years ago. They were the first to see the opportunity lies in our virgin but rapidly growing market.

2012 The first year was rather slow but today they own nearly 50% of the market share!

Time line

 Arcos helped to enhance the private sector awareness for the need of a fine quality knifes (professional chefs claim that they are only mediocre). Although the above mentioned we can hear professional chefs opinion being more and more positive to the brand! Till today the marketing activity is low and the only two players in the field are: Arcos and Arcosteel.

ARCOS= CHEF KINVES (perceived)

This is the time to improve the positioning

Back to us

Media Channels

TV
Cooking shows Prime time TV Sports channels Marketing content

Direct Delivery
Brochures/ Door Hangers

ADDS
Professional Journals

Billboards
Billboard adds at strategic locations

 Building a fan page and Maintaining community activity: recipes using the knife, contests, gimmicks. YouTube customized channel. Activity at specialized blogs

Social networks

The Israeli public is very active on social media networks. The on line promotion activitys goal is to establish a strong supporting community who has a positive position and positive experience with the brand. A community which will help spread the word by word to mouth. The activity will create brand association to daily cooking event, will enlarge the community on a daily basis and will keep the brand in mind all of the time.

PR
opinion leaders in the field: chefs, bloggers, cook enthusiastic, cooking academies managements, celebrities (as Master Chefs graduates)

The PR plan
Supporting Sales promotion campaigns and activities at point of sale

Fluent publications

Connecting the brand to complementary product launches

Connecting the brand to gourmet restaurant opening and its chefs

Connecting the brand to hotel restaurants, business lounge and chefs

Brand launch event estimated at Nov/ Dec 2012

Ongoing activities

Sales Promotion plan

Placement of the brand stands at points of sale. Bi - Weekly promotion activities at top sailing points- chef demonstration for the knife special and diverse uses and professionalism Initiating joint operations with companies in the food industry- for example: anyone who purchase a certain type of meet in a certain amount will get WUSTHOF special knife accordingly. Exhibition participation: Israfood, cooking exhibitions

Budget and timeline:

The estimate budget needed for the implementation is: 2013: 200,000 Euro 2014: 150,000 Euro 2015: 125,000 Euro

Sources for the 1st year Rivlin,

, 4-Chefs

Lets pave the way and make a top selling Brand in Israel!