According to marketing managers’ experiences, the first TV and radio commercials of a new product and its advertisements in magazines do not produce any results until the consumers can actually taste the product and experience for themselves that the claims they have heard or read about it are well-founded. That was why Master Good Kft. decided to devote considerable resources to the promotion of its new product family, the Master brand.

Building on Free-range Chicken

Master Good has been known by consumers for its free-range chicken because it is the only supplier of this product in Hungary. (In poultry-farming, the term “industrial chicken” denotes chickens that are mass-produced, while free-range chickens are free-range and feed exclusively on natural materials.) The profitability of industrial poultry-raising and distribution is rather low, which is why the company has decided to venture into free-range chicken farming first, and then also into poultry processing. Despite the intense competition in the latter area, if a company offers consistently high quality, the customers will be willing to pay more for its goods. The recent scandals of the food industry also urge consumers to seek for products and suppliers they can consistently trust. Free-range chicken is such a product since its high quality and flavour have gained the consumers’ confidence.

When Less Is More

Master Good introduced its Master brand poultry Vienna sausage, ham, liver paste and sausage last September. According to market researches, consumers are keen on flavoured ham and meat products, which was why, among others, chicken breast ham with red bell pepper and chicken liver paste with chives and red bell pepper were launched, too. In March, we started an intense campaign, which included advertising in magazines and radio programmes. In April, they were followed by a national sweepstake. The Management, instead of offering one main prize that is worth several million forints and would seem somewhat unattainable for the everyday consumer, opted for less valuable but more achievable prizes: the first prize was a trip to Cyprus for two, and over a thousand other gifts were given away. Since no such promotion had been launched by the company before, it was not known to what extent the competition would encourage the consumers to buy the products. At the drawing, which took place recently, the winners were drawn from a total of 7,248 entries.

Master Good’s cock logos were checked and the entire sweepstake was conducted by the company’s marketing and customer service departments that number only a few employees. The tasting promotion took place concurrently to the sweepstake. Each Cora supermarket, and selected Tesco, Auchan and Interspar supermarkets participated in it. The promotion lasted for two days in each of the thirty supermarkets.

Uniquely, three hostesses worked in each supermarket: two in the selling area, and one outside the selling area. One hostess in the selling area was walking near the poultry counter and recommended the Red Master free-range chicken to customers, while the other hostess invited customers to the tasting stall at the cold cuts counter, where six products were offered for tasting. The third hostess worked at a counter outside the selling area and handed the gifts to the customers. Every customer that bought a free-range chicken was qualified for a gift. Customers buying one chicken got a textile shopping bag, two chickens qualified the customers for an apron or a dish glove, while three chickens, for a towel equipped with the Master Good logo. Customers received the gifts upon presenting their receipts. The products offered for tasting were not on sale during the promotion but the processed poultry products were offered at an introductory price.

Cora Patrons Tasted the Most Products

It is never easy to anticipate exactly how much goods will be needed, especially if there are six kinds of food available for tasting. Master Good, therefore, decided rather to supply more goods than run out of supplies before every customer could have a bite. The most popular product at the tasting was poultry liver paste with red bell pepper.

Success of the Products during the Promotion

Cora supermarkets sold the most processed poultry products per supermarket. They were closely followed by Auchan supermarkets. (The processed products were available for tasting in seven Cora, ten Interspar and three Auchan supermarkets. In the ten participating Tesco supermarkets, only free-range chicken was offered for tasting.)

Free-range chicken sold best at Tesco, followed by Cora, Interspar and Auchan supermarkets. Based on these data, one cannot jump to the conclusion that if the promotion of processed products was successful at a supermarket, the free-range chicken also sold well, or vice versa. It is more likely that it was the hostesses’ skills and personalities that determined which product was more successful at each supermarket.

László Bárány, Owner and Managing Director, and his management team considered the promotion successful because its primary purposes were to familiarize customers with the new products, increase the popularity of the Master brand, enhance confidence in the brand, and, naturally, increase sales. The promotion, during which several thousands of consumers were reached, accomplished all of these purposes. Although we do not yet have information about the popularity of the brand, we do know that during the two days of the promotion, our hostesses sold a total of 4,557 Master products and 1,816 Red Master free-range chickens.

Customer Conference

Besides tasting promotions, Master Good participated in CBA’s customer conference, where it had an opportunity to present its new products to 45 to 50 shop and regional managers at a time. The experts could not only taste the meat products but also place orders for them at special sale prices.

According to Katalin Neubauer, Sales Manager of CBA, customer conferences prove very efficient when new products are introduced to the market because at these events, the manufacturers may gain the shop managers’ confidence faster. The new products are presented in an informal setting, and sale prices and gifts are also offered. The setting facilitates the creation of good personal relations as well as subsequent business deals. In such a setting, it is easier to reach agreements on special arrangements of the products in the shops, too.

According to Neubauer, Master Good’s strategy was efficient because first the high quality free-range chickens earned the consumers’ and shop managers’ confidence, and it was after that that the company introduced its processed poultry products. She adds that in the field of processed meat products an extremely wide range of high quality goods is available, which is why each company has to monitor the market on a continuous basis and take into consideration even the most minor comments of the consumers in order to maintain the highest quality possible.

There are less marketing tools available in the field of meat products than in other areas. In addition to the campaigns described above, Master Good has successfully used its own refrigerators with its free-range chickens in the shops. The company intends to apply the same method with the new products. Although the acquisition of refrigerators may be costly, they help increase sales three- to fourfold.

After several supermarkets agreed to provide space for Master Good’s own refrigerators near the regular meat refrigerators, they were keen on maintaining the arrangement permanently because the sales were multiplied.

Another advantage of the own refrigerators is that the manufacturer’s products are offered in large quantities on a continuous basis, since it is also the shop’s interest to ensure that no refrigerators are operated empty. At one occasion, after learning about the positive effects of this arrangement, it was the purchasing manager of a supermarket chain that requested that Master Good provide its own refrigerators along with its products.

From the Microwave to the Oven

Master Good’s preservative-free convenience food products, which are mostly exported, are not yet widely-known in Hungary. With the help of these products, housewives can provide their families with home-style and flavourful meals in the blink of an eye. László Bárány, Managing Director, says that in Western Europe, microwavable foods are gradually being replaced by convenience foods that can be prepared in the oven. Their flavour and appearance are identical with home-made dishes and they spare housewives the lengthy preparation that usually characterizes home-made dishes. Such products include marinated and stuffed chicken breast and seasoned whole chicken, which are soon to appear on supermarket shelves in Hungary.

These products are expected to restore the former status of housewives since they will replace microwavable products that even children can prepare.

Trade Magazine / August-September 2007 / Volume II, issues 8-9