Corporate Overview

Continental Biscuits Limited (CBL) was founded in 1984 following a

Joint Venture between the family of Hasan Ali Khan and the Group

Danone, the French food giants. In the year 2007 Danone sold their

biscuits category to Kraft Foods of USA. Today the company has a

joint venture with Kraft Foods with a shareholding of 50.5% and

49.5% respectively.

For more than two decades CBL is engaged in the manufacturing and

marketing of the brand LU. We have an array of products which are

pre-eminent in the branded biscuit business both in Pakistan and

abroad. Our unrivalled portfolio of brands has been meeting

consumer needs for well over two decades and includes such

favourites as TUC, Candi, Prince and Tiger. We produce some of the

best known crackers, cream variants, plain and ingredient-based

biscuits. Our manufacturing location based in Sukkur is a centre of

excellence which provides employment to 1400 people in the region.

Our marketing, sales, finance, commercial, IT and the human

resources functions are located in the head office in Karachi

employing a total of 170 employees. As a part of the leading FMCG

our head office has close links both with the Regional Offices of Kraft

in UAE and our manufacturing plant in Sukkur.

Prince

Adventure, excitement and the magical world of a child’s imagination;

that’s what our premium cream brand Prince is all about. The

country’s largest chocolate cream biscuit, Prince rules the hearts of

children all over with its yummy, energy-filled chocolate sandwich

biscuits.

Generously filled with rich chocolate cream sandwiched between

crispy and delicious biscuit shells, every bite of Prince gives you the

fulfilling taste of creamy smooth chocolate and fresh biscuits. The

brand has now become synonymous with chocolate cream owing to

rich flavor that remains unmatched by any competitor.

More than just the delicious biscuits, Kids relate to the Prince

character as a dynamic and electrifying savior thereby enhancing the

brand’s appeal among an age group that’s always looking for mentors

and role models

Packaging

FAMILY PACK

The pack is priced at Rs25

SNACK PACK

The pack is priced at Rs12

TICKY PACK

The pack is priced at Rs4

Prince Chocolate

• Prince has strong equity in Chocolate

• Prince Chocolate is perceived to have a very high level of

product quality (ATP-27% score only second to sooper for kids

dipstick)

• The chocolate cream along with the high product quality is main

discriminator (ATP high scores on uniqueness-30% and great

taste-31)

• It is the market leader in chocolate cream biscuits

• The brand was experiencing eroding equity in 2006 due to lack

of innovation; product, packaging & communication (equity

research Mar-May 2006)

• Teenage & tweenagers girls start feeling that the biscuit is too

large and heavy (equity research Mar-May 2006)

• Consumption in teenage boys decreases as Prince chocolate is

perceived as a children’s biscuit (equity research Mar-May

2006)

RIO (equity research Mar-May 2006)

• Consumer feedback shows that RIO is nearing maturity stage

in its life cycle and a new brand will become market leader

within 5 years of launch

• Biscuit shell of RIO is preferred due to its crispy taste

Sales

• RIO sales spread nationwide with concentration spread over

more major towns and regions as compared to Prince

which is urban centric

• RIO major sales contribution from Punjab flavored cream belt

Vs Prince major contribution from top 3 urban towns

General

Children in urban centres (source : CN children research 2006);

a) Constitute 43% of urban population aged 0-14

b) 92% have color TV sets

c) 73% have cable TV

d) 63% have computers

e) 84% share bedrooms

f) 43% have computers and 17% have used internet

g) List watch TV, reading books and playing as most

common and/or favorite past-time

h) List cartoons as favorite program watched followed by

dramas

i) Top 3 reasons for liking TVCs; makes me laugh, has nice

music and/or has cartoon character

Snacks Industry

• Children have biscuit, chips, soft drinks, ice cream, toffees,

chocolates, juices and chewing gums in their snacking basket

of goods

• Chips consumption is the second biscuits consumption and has

higher household penetration

• Children consume biscuits, soft drinks and chips every day

• Children want a ‘fun’ snack which is good tasting

• Mothers want a snack filled with ‘nutrition’ to give their children

energy during the day

• Sooper does not feel heavy and a full family pack can be

consumed in one sitting

Consumption and Spending (source : CN children research 2009)

• Average daily pocket money for children in urban centres has

increased to from Rs25 to Rs50

• With increase media spending in snacks category on

chocolate bars, chips, ice creams and toffees there is tough

competition for a child’s share of pocket

• Children consume snacks; specifically biscuits and chips, at

home in the evening and at school during break

• Children are innovation seeking and want regular innovation

in all snacks.

Key BrandsCBL EBM Kolson Akbar FoodsPrince Rio Jam Hearts Flory

Sandwiches Cream Hearts

Cream Category – Brand Share

Cream Category – By Flavor

Prince Others, 7.0%

Prince Chocolate,

18.2%

Rio, 38.7%

Others, 27.1%

Flory, 3.4%

Cream Hearts, 1.2%

Jam Hearts, 4.3%

Strawberry Vanilla48%

Chocolate25%

Others10%

Lemon1%

Lemon Orange2%

Chocolate Vanilla8%

Vanilla6%

Profile of main competitors

Brand Seed

Competitive SetKid’s biscuits & snacks

Target MarketKids 6-12 yrsWho are active, like

snacking and whose mothers want them to eat healthy

Brand Personality & Values

Active/Imaginative/Energetic/ Constructive

Fun/Fantasy

Discriminator Mascot The only cream sandwich biscuit that provides energy

Brand OwnablesColour: Vibrant coloursFont : Prince logo type and

vibrant chocolate fontBiscuit shot

Consumer Insights

“I want snacks that are yummy, fun and my mom says I also

need things that help me be healthy

& strong”

Emotional BenefitsIndulgence & Fun

Reason to believe

Fortified with Iron & Vitamins The taste kids prefer (creamy

filling)

Functional Benefit“Tasteful snacks that provide

energy & nutrition”

‘Energy to have fun’

Brand History

1980s Prince launched as one of 3 launch brands by newly formed

CBL-Danone affiliation Prince was first chocolate cream sandwich biscuit

1990s Prince launched other cream flavours to maintain leadership

position in cream segment RIO launched by EBM to counter Prince in cream segment but

was unsuccessful in doing significant damage Prince starts to close other cream flavors due to small market

sizes and low promotional budgets on the same 2000-2004

RIO launches sub brand RIO Double Treat which is and immediate success due to double cream in fruit flavors. Both considered good innovations by the innovation seeking target market –children

Due to high quality product range with expensive ingredients Prince profitability comes under pressure

2005- Year of resurrection

Relaunch & Invest Relaunched Prince Chocolate on energy to have fun platform New and vibrant packaging New TVC Results : New communication, TVC and packaging was a hit

with consumers Rationalize & Consolidate Portfolio

Migration of Double Milk from MilcoLU to Prince Launched Lemon as a new variant for niche market Discontinued other variants (2in1, Coconut, banana, pineapple

etc) Extend Franchise & Target group

Launched Dark Forest for Teens Results : Not a successful launch

2005 Results

Migration of Milco LU did not work as desired Prince lemon a small volume brand did manage to gain

acceptance by target market but due to the expensive recipe was not profitable

2006- A new year – a new beginning

Twin Fun Launch

Launched Twin Fun as Prince sub brand to counter fruit flavor double cream market of RIO DT in Jan 2006.

Strawberry-Vanilla & Lemon-Orange launched School activation, mega BTL drives across Punjab towns

in phase 1 and metro towns in phase 2 Captured 25% category share in fruit flavoured double

cream market Issues

Packaging a success but product issues developed with Rs 1.8 MN product write off at end of year 1

Relaunch In August 2006 Tactical TVC supplemented with School OGA had good

results but not successful Results : Launch not successful due to

Product issues Low Marketing spend Existence of market leader with first mover advantage No clear USP

Diminishing brand loyalty Research

Users saw the brand as stagnant Brand was becoming antiquated

2007- Year of Rejuvenation

Re-launch Prince brand Packaging

More vibrant colors Better product and cream shots

TVC Modernized character Created contemporary theme Made Kid hero and Prince a facilitator

Consumer interaction Activated brand across the year in 12 towns through

school activities Activated brand in off-season through media linked

Prince Summer camp Maintained consumer involvement in Ramadan through

Prince Eidi Time CP Results : Prince chocolate grew YTD May by 47%

Maintain Product profitability Price increase

Took first ever price increase in industry in over 8 years on Chocolate Ticky pack in May ’07

Industry price increase on most brands in July’07 Results :

Brand saw a dip of over 60% volumes in Q3

Branding

The CBL organize summer camp for children’s which is called Prince Summer Camp that create a positive brand image of Prince in the mind of the their target market (Children’s)