Assignment:1

FRUIT BANDIT APPS BY TANG CRITICAL ANALYSIS OF PROMOTION STRATEGY OF TANG

Prepared for: Sheikh Morshed Jahan Associate Professor Course Instructor Business Strategy

Prepared by: Maleeha Tarannum, RH-106 Section:B BBA, 18th Batch

Institute of Business Administration University of Dhaka September, 18, 2013

1. CASE OVERVIEW: 1 Tang cell phone game and web tool

Over the years, Tang has been synonymous to taste and refreshment around the world. Winning millions of hearts with its irresistible taste over generations, there is hardly any introduction required for Tang. Striving for continuous innovation to bring new experiences to its loyal consumers, Tang has introduced five different flavours in the local market. Tang Orange, which is also the flagship flavour, is the single most popular flavoured powder drink in Bangladesh. Next followed Tang Mango, Pineapple, Lemon and a combo flavour of Orange-Mango. Tang has created a first-of-a-kind game called Fruit Bandit as a follow-up to its recent Twins Campaign depicting a pair of identical twins having many similarities in their behaviour and personalities but, differing from each other when it came to taste. The game has five levels and can be played on all mobile platforms (both Apple iOS and Google Android). This exciting game will challenge the skills of gamers and intrigue them with great action and graphics. The story of the game revolves around Tonty and Monty, the twins, as a band of rogue monkeys kidnap Monty and the latter sets off on a quest to rescue him. With only a slingshot in hand Tonty must take the challenge to the evil monkeys, giraffes, gorillas and bees. Limited stones, incoming fruits and a glass to fill; Tonty needs to be alert at all times to keep an eye out for power-ups. On a different note Tang also took up the responsibility of re-introducing Bangladeshi fruits to the masses this year through the introduction of Bangladesh Phol Porichiti. It is a web -based reference tool for kids and adults who grow up in cities oblivious to the numerous fruits of Bangladesh and their benefits. One can experience the site and its features by visiting www.fruitsofbangladesh.com

(The Daily Star, 2013)

2. Brand Overview: Tang

Tang, available in more than 30 countries, is the leading brand in powdered beverage portfolio of Mondelez International. Tang was basically a product of Kraft foods. In October 2012, Kraft Foods Inc changed its name to Mondelez International. This fresh, fruit-flavored drink is available in a variety of flavors -- based on local consumers preferences -- and is fortified with minerals and vitamins. It is available both as a powdered beverage and in ready-to-drink bottles. In Bangladesh Tang is imported. The promotion activities are designed and implemented by Ogilvy Bangladesh. So far five different flavor of Tang including mango, orange, pineapple, lemon and orange-mango in the form of powdered beverage only are available in Bangladesh. Tang is not only the market pioneer but also the market leader in regard of powdered flavored drink in Bangladesh.

3. Stakeholder Analysis:
3.1 Stakeholders Categorization:

3.2 Stakeholder Analysis:

1. Consumers have the most power as they take the ultimate buying decision. Also they have the most importance as ultimately

they are going to consume. Unlike ready to drink

product, Tang has less scope of using pumpkin under the name of mango. Yet, it is food product linked with health. Thus, society has interest on the product. Also, the society has the power to change trend regarding what the members of community are going to drink. Thus, society is an important key player for Tang. 2. In Bangladesh, there is not branch of Mondelez . The sale therefore is mostly linked with promotion. Thus, Ogilvy & Mother which is the advertizer of Tang as well as other media partners have inflencial power. However, their interest is not as strong as of the consumers. 3. As the product is imported, importers have some interest. Also, wholesalers and retailers have interest. However, their power is not that strong. Governemnt has interest as the product is being sold at local market but has less power than consumers. 4. Because the product is imported, trade association might have role. But the import is scattered among various importers. Also, the product is food products. Both interest and power of trade association therefore is low.

4. PESTLE Analysis: Macroeconomic Area Political

Issues
Political Instability

Inconsistency in policies formulated during different political horizon

Economical

Competitive Advantage in term of Production Cost

Global recession does not affect national economy immediately rather affect in a slow gradual process

Social

Working mothers are increasing

Importance of opinion of children in decision making is increasing

Extended families are breaking down

Technological

Virtual life is getting priority

Innovation by using technology iis being welcomed

Use of apps is getiing popularity

Legal

Legal barrier in term of import

Tariff can have implication

VAT has some impact on buying power

Environment

Urbanization is leading to decrease in scope for outdoor game & sports

4. Porters Five Forces Analysis:

Few popular brands; bargaining power is low Import & supply is not concentrated in few hands; bargaing power is moderate. Pioneerr as well as most known brand in local market. Competitive rivalry is low. Local initiative not noteworthy; huge opportunity for local initiative exists. So, threat of new entrance is so high.

Bargaining Power of Customers Bargaining Power of Suppliers Competitive Rivalry within market Threats of New Entrance

Lots of brands for substitute products like soft drink, carbonated drink, juice are available in local market. Hence, threat of substitute products is strong.

Threat of Substitute products

5. Critical Analysis of Strategic Move:

Apps is not linked with powdered beverage like tang. So by introducing apps Tang basically has tried to indirectly promote the product. We can infer that, the attempt of Tang was not to promote the product rather promote the brand Tang itslef. Now a days, people of all ages show interest in technology. Smartphone is being sold like hotcake. Even smartphone is available in hands of lower and lowder middle class people. Different apps are popular among people of different ages. Specially teenagers and young people love to spend their passtime by using apps related with games. Fruit Ninja is already a very popular apps. Thus, by introducing apps Tang is refelcting its advocacy innovation using technology. The apps itself is not an innovation but apps with powder beverage is obviously an innovative idea. So, grabbing technology to promote brand is a very smart move for Tang. Fruit Bandit has a interesting story that reflects indirectly the power of relationship . Thus, it touches a core point of society, relationship. The lead characters of this story are two teenage boys representing the teenage soceity. Thus, it linkes its apps with its consumers. From the

stakeholder mapping we have seen that key players of Tang are its consumers as well as society. So Tang is successful to touch its keyplayers through its strategy.

Many new brands can come up with powder beverage in future . They can introduce new flavor or new packaging. However, the promotion strategy is so unique that the new position of brand Tang in consumers mind is now difficult to manipulate. Also, none of the bra nds of substitute products have done something like introducing apps. So in term of both new entrance and substitute products we can conclude Tang will be at a favorable position as the combination of apps-powder beverage is a very unique idea. So, we can say from the strategic analysis and comparative analysis that the promotion strategy taken by Tang is a very smart one in term of its aim, use of tool, target market and coverage of

social, technological and environmental aspect. It has created a combination that will give it a unique position in consumers mind. The promotion strategy has no negative impact on society rather enhances social value like social bonding. Toddlers and teenagers who prefer ready to go drink to powder beverage now might be interedted in Tang while playing Fruit Bandit. So the startegy is not only going to benefit the brand but also the society. It is the power of the promotion startegy of Tang.