Olymp'Ia Targeting for Growth

Marketing Management

2010/2011

OLYMP‘IA Flavors

Targeting for Growth

Overview

Company Presentation Problem Definition Market Situation & Competitive Situation Market Segmentation Criteria Market Segmentation & Prioritization Application of Concepts & Recommendations Questions/ Discussion

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Company Presentation OLYMP‘IA

Specialized in Nature Products and Fine Chemicals Four Business Units: Flavor (8th), Gelatin (1st), Enzymes and Hydrocolloids (2nd) Focus on Flavor Business Unit Flavor market divided into four end use application segments Yoghurt and Dairy based Desserts (YD) Soft Drinks (SD) Confectionery (CC) Ice Cream (IC) Large production units in France, Germany, Italy and Spain Main regional market: Western Europe; Main European market: France

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Problem Definition

Active competition from top 12 worldwide flavor suppliers

Board of directors decision: become one of top three global suppliers

Marketing approach: European targeted turnover increase of 20% in 36 months

Redefinition of most pertinent market segments

Prioritization of most promising segment under given budget constraints

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Market Situation

Highly fragmented market, top players account for more than half of overall value One-third of total revenues in Western Europe

Main market risks/threats Unplanned price increase of raw materials Growing consolidation among flavor manufacturers Stricter regulatory norms regarding the usage of chemicals

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Competitive Situation

Top two players 25% of the worldwide market (Zeus and Hera)

68 % of the market is represented by the 13 top flavor companies (OLYMP’IA 8th)

Competitors based in Northern/Central Europe and the US

Weak position in key region Eastern Europe

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Competitive Situation

Competitor Yoghurt / Dairy Ice Cream Confectionery Soft Drinks

OLYMP‘ IA

Nr. 3 strongest segment and “cash cow”

Nr. 3 strong innovation highly reactive to customers high price Nr. 2 high...