Marketing Plan Ava Virgin Coconut Oil 1dq1m

THE MARKETING PLAN For the sale and distribution of ava® Virgin Coconut Oil and related product from the company

Prepared by: GKV INVESTMENTS LIMITED

MARKETING PLAN

MARKETING PLAN (ava ® VIRGIN COCONUT OIL) BY GKV INVESTMENTS LIMITED INTRODUCTION AND BACKGROUND GKV Investments is a private limited liability company incorporated under Ghana’s Companies Act, (Act 179), 1963 and was issued a certificate to commence business on April 15, 2013 with number CS178982013. The company’s core business is the areas of Agro-processing and trading in general goods with a vision to be a world-class consumer group that deals in quality and innovative healthy foods and neutraceuticals, propagating the benefits of the Coconut Tree “the Tree of Life” and create innovative products to satisfy consumers the world over. The company’s flagship product is the brand; ava® Virgin Coconut Oil (VCO) which is processed with a “Cold Press” and Centrifugation Model technology, a process that does not apply any chemical or heat in order to maintain the full health benefits of VCO. Owing to the health benefits of Virgin Coconut Oil (VCO), the quality of ava virgin coconut oil and international standard packaging, demand for the product locally and internationally is gradually increasing. Moving forward, the business is aiming to increase its product range by utilizing all the byproducts from the production of VCO for the production of other products including; coconut flour, essential massage oils, organic fertilizer, cosmetics, hair products, neutraceuticals and activated carbon. The following, analyses the current market for coconut oils and tries to identify competition for our brand of coconut oil – ava® virgin coconut oil on the Ghanaian market and the a map out strategy to push ava® Virgin coconut oil to become a household name. Our vision is to put ava® in every kitchen, pharmacy, supermarket, mall, shop, beauty shop and anywhere coconut oil is essential for the wellbeing of humanity. COCONUT OIL, CURRENT MARKET, COMPETITOR ANALYSIS Coconut Oil Coconut oil is a vegetable oil that is derived from the kernel of coconut. Traditionally, coconut oil is extracted from either fresh or dried coconut by boiling and or fermentation. When boiled in water, the oil separates from the meat and float to the surface where it is scooped out. The juice or coconut milk is squeezed out of the meat and allowed to ferment for 24 - 36 hours. The fermentation process allows the oil and water to separate out naturally and the crude oil is scooped and heated for some time to evaporate the moisture. The heat is not harmful because the oil is very stable even under moderately high temperatures. The quality of coconut oil depends a lot on the method of its extraction. Basically, there are two main methods or categories of extraction of coconut oil: The first is Cold Pressing of copra (dried coconut kernels) and the second is boiling of fresh coconut milk. Cold pressing is one of the preferred methods for the extraction of coconut oil since it retains much of oil‟s nutritive value.

There are different methods of processing coconut oil that can affect the appearance, flavour/aroma and nutrients. The two broad categories of coconut oil are refined, bleached and deodorized (RBD) coconut oils and virgin coconut oils (VCO). Virgin Coconut Oil (VCO) is a vegetable oil that is obtained from fresh dried coconut kernel and is processed using physical and natural means. According to Ghana standard authority, virgin oils are extracted without changing the nature of the oil and are obtained by mechanical procedures (expelling or pressing) and with the application of heat only. VCO may have been purified by washing with water, settling, filtering and centrifuging. Moreover, no food additive is allow to be added in virgin oil. There are four common methods of producing virgin coconut oil (VCO); Expeller method, Centrifuge method, Fermentation with heat (FWH) and Fermentation without heat (FNH). VCO products prepared using these four methods could not be differentiated using standard quality parameters but with sensory analysis it showed that VCO produced by fermentation (with and without heat) could be distinguished from those produced using the expeller and centrifugal methods. The centrifuge and fermentation methods are wet processes, while the expeller method is a dry process. Natural fermentation occurs through the action of bacteria that are naturally present. Refined (Bleached, Deodorized) Coconut Oil (RCO) is extracted from dried copra and the crude oil obtained is processed on an industrial scale by washing, bleaching, and deodorization. Deodorisation of coconut oils removes the volatile odours, flavours as well as peroxides, that affect the stability of the oil and this is done by heating the oil to a temperature of 150 - 250 °C and ing with live steam under vacuum conditions. The coconut meat is mostly dried by the sun, smoking or heating in kiln and preferable, the oil obtain from copra is the most common coconut oil used in the cosmetic and food industries. Current Market Description (Global trends in coconut oil trade) Coconut oil remains the most important form of consumption of coconuts. World coconut oil production has been increasing over the past decade. It is now estimated at 3.5 million tons per annum. This s for 2.5 % of world vegetable oil production. Over 70 % of global coconut oil production comes from the Philippines (1,690,000 MT), Indonesia (968,000 MT), India (447,000 MT), Vietnam (153,000 MT) and Mexico (145,000 MT). The only African, Caribbean and Pacific (A) countries in the top ten coconut oil producers, are Papua New Guinea (63,000 MT) and Côte d‟Ivoire (28,000 MT). Coconut oil exports have been increasing over the past decade mainly because of the greater global demand for the vital characteristics of coconut oil. The Philippines is the major exporter of coconut oil with 42% of world exports while, USA and Europe (Netherlands, ) were the main destination markets for the oil which ed for about 24% and 25% of imports respectively.

IndexMundi (2014) outlined that, coconut oil production in Ghana reduced drastically by 42.86 % (4,000 MT) in the year 2000. However, in year the 2011 it increased by 50 % (6,000 MT) and has remained at that level till date. Products Owing to the above classifications, there are primarily six varieties of coconut oil products found on the world market and include: - Pure Coconut Oil, - Refined Coconut Oil, - Organic Coconut Oil, - Virgin Coconut Oil, - Organic Virgin Coconut Oil and; - Extra Virgin Coconut Oil. These varieties are so named because of the source of raw material used, the method of extraction and the type of processing method used. Organic coconut are those planted without the use of artificial fertilizers and or may be from the wild. Summary Local Market Segment Coconut marketing in Ghana is shared among the various stakeholders in the value chain. There are four market situations; the fresh nut (drinking) market, dry nut market, copra oil market and the husks and shells market. The fresh nut are sold by the farmers themselves to wholesalers and retailers in towns and cities. The dry nuts are sold to the local coconut oil processors, coconut oil mills and exported to Nigeria. The marketing of dry nuts to Nigeria evolved very quickly due to favorable prices. The husks and shells are mostly bought by WIENCO Fibre Factory (Jomoro district) for processing. Four coconut oil processing methods are identified in the local market; traditional method with 1 day fermentation (TM1), traditional method with 2 days fermentation (TM2), traditional method with 3 days fermentation (TM3) and virgin oil method (VM). The traditional method with 3 days fermentation constitute the major processing method practised (37.3%). Virgin oil method records the lowest values for Moisture Content, Free Fatty Acid, Peroxide Value and Iodine Value both after processing and storage as compared with the standard limit for coconut oil. The local coconut oil market is characterized by three categories of participants and include: - Local coconut oil processors (mostly small scale) - Coconut oil mills (copra Processing Factories) and - The exporters/importers (Wholesalers for sub-regional markets). The local coconut oil processors produce mainly for local consumption and for the local market centers. Their produce are mainly marketed in Accra (Abobloshie), Kumasi (Railway station), Tarkwa and Obuasi,

There are three copra processing factories in Kumasi; Vester oil mills ltd in Abuontem, A.B. oil mills in Abuakwa and Golden web oil mills in Boankra. These factories mostly sell the oil to soap making factories in Ghana and in Burkina Faso. The wholesalers of coconut oil buy the oil from the processors in the villages in drums (210 litres) and jerrican (62 litres). The wholesalers sell to local retailers of coconut oil and export to the sub-region and are organized into associations. For example, there about thirty wholesalers from Nzema East District in Accra and fifty in Kumasi and also about one thousand coconut oil retailers in Accra alone. What Makes ava® Virgin Coconut Oil Unique? Currently, ava® virgin coconut oil is a unique product on the local market since it is made for both the local and international markets. It is produced with the highest standard to compete with available local and foreign brands. The oil is cold pressed and processed; the flesh of coconut is wet pressed and centrifuged to ensure that the oil is produced without direct heat or chemicals. The oil is crystal clear and silky smooth; this ensures our coconut oil is superior in flavor and texture. Our process; all steps from growing to production are organic and ‘double green’- both growing and processing’. The resulting oil has medium chain fatty acids and 50% lauric acid recognized as highly beneficial to health. This process ensures a lengthy shelf life of 2 year or more (at room temperature). It is also not hydrogenated or altered by fermentation, which allows it to retain beneficial properties from the oil and plant sterols. The product can be used for Cosmetic (Hair oil, Body massage oil) and Cooking (Frying, Baking, and Direct consumption) purposes. Competing Brands There are currently various brands of virgin coconut oil locally produced for the market. Some of the brands are cold pressed as ava® and others are produced with slight heating. Some of the available brands include: Makola, Tree of Life, Shea Butter Cottage VCO, WN Coconut oil, Gomoa VCO, Nɔmi VCO, Lovina VCo, ASA VCO, Natures Way VCO, GP VCO, Reny’s Africana VCO and Teni’s VCO etc.

 Marketing Strategies Owing to the fact that there are competing brands on the local market, the company is embarking on the following strategies in order to achieve its marketing objectives. We intend to deplore various modern techniques such as a virtual showroom online, brochures, presentations and videos to showcase our exclusive products and services. Special branding activities include signages to the factory site, branding of workers gears (overalls, helmets) and vehicles. - Product The company is noted for purchasing good quality coconut fruit for its production and we ensure the highest standards are adhered to in other to produce the best quality on the market. Ghana standards for oils (quality characteristic) state that, the colour, odour and taste of each product should have the characteristic of the designated product. It should be free from foreign material and rancid odour and taste. Quality control is essential to us and so we offer in house training for all our agents on quality standards which is the hallmark of our company. ava® virgin coconut oil (VCO) is produced to meet local and international standards, produced from quality and mature Ghanaian Coconut, pure without preservatives. We always keep a high standard of process and product quality. ava® virgin coconut oil is processed under the guidance of experienced professionals using advanced machines. It retains all of its nutritious and natural antioxidant properties, delicate taste and gorgeous aroma of fresh coconuts. It retains all of its nutritious and natural antioxidant properties, delicate taste and gorgeous aroma of fresh coconuts with no additives. -

Packaging

Ministry of Food and Agriculture defines food security as “good quality nutritious food, hygienically packaged and attractively presented, available in sufficient quantities all year round and located at the appropriate places at affordable prices”. The recommended packaging material for VCO is glass, when it is expected to be on the shelf for several weeks. Plastic bottles used for mineral water can be used in cases where the oil will be immediately consumed. It is for this reason that ava® is packaged in a carefully crafted bottles since the shelf life of our products is over 2 years. The product is currently packaged in 500 ml and 750 ml bottles which are packaged in cartons and 4 liter gallons as well. The company has also applied to the Trade ministry for the made in Ghana logo in order to enjoy the benefits associated with the logo. It is common place for customers to think ava® is a foreign product due to the superior quality and packaging.

- Price ava® virgin coconut oil is carefully priced to compete on the local market. For pure coconut oil, our products are the most affordable you can find on the market. Current market prices for virgin cocnut oil products on the market indicates that ava® virgin coconut oil is affordable. As part of the marketing strategies, we provide free deliveries in Accra for purchases of 10 boxes and above. Below are some competing products and prices these brands are carefully selected because they come close in quality and packaging as ava® Vrigin Coconut Oil which is sold at GHc 25/500ml, GHc 35/750ml and GHc155/4L gallon: Product Brand Tree of life

Type of VCO Cold Pressed

Nature’s Way

Cold Pressed

Renny’s Africana Enzimitianu Makola ASA JBCO Plus GP (plastic bottle) WN Coconut Oil

Cold Pressed Low Temperature Low Temperature Low Temperature Cold pressed Low Temperature Cold pressed

Quantity 120ml 500ml 250ml 500ml 500ml 1 liter 1kg 500ml 500ml 500ml 500ml

Price (GHc) 15 35 20 30 50 42 17 25 35 15 30

- Mode of Payments GKV Investments employs all the modes of payments as required in the rules local market as well as the use of modern technology including but not limited to mobile money payments and other cashless and electronic payment platforms. Currently, a client can order for products online and make payments with mobile money or pay cash on delivery. This system ensures that clients could make purchase without leaving the comfort of their homes and shops. and conditions apply though. - Place and Distribution. The locations where one could purchase our product are due to our target market. We currently supply to middle to up market individuals and those who are conscious of health benefits and so we

supply to carefully selected shops and convenience stores to ensure that the company is visible and accessible to these clients. The locations include; Beauty Shops, Pharmacy, Niche health shops and centers where organic foods are sold such as the farmer’s market and supermarkets such as Melcom, Koala, Palace, Sneda, Maxmart, Medimart, Ad Pharma, Shoprite and a host of fuel stations shops. Curently we have presence in Accra, Takoradi and Kumasi and are recruiting distributors for the product across the country. Currently the distribution structure is mostly by direct marketing and through word of mouth recommendations. The product has a heavy online presence, through our social media channels on Facebook, Twitter and WhatsApp for direct marketing activities and on our websites http://avacoconutoil.com. The company is soon to create a youtube channel for corporate videos and sponsored events. - People GKV Investments has recruited and maintain a team of energetic and qualified staff across its production levels. Only personnel with interpersonal skills, aptitude, and service knowledge are engaged with the business. The company, as a matter of policy invests heavily in the human resource to ensure growth and efficiency. The training captures all categories of staff whose services are very crucial to the growth of the company. - Promotion The company will increase its sensitization, education and promotion campaign to push the product to every corner of the nation by creating awareness about products superior quality and health benefits in general. We will also use the local information centres, FM stations, durbars and other practical and effective means of promotion to the company and products. The company will continue to participate in trade shows and exhibitions. Another project, the company will soon embark is the use of product Ambassador. High profile personalities have been ed to give endorsements to the product. - Social Responsibility The company, as a matter of policy shall set aside part of its profits to provide social services such as digging of bore holes, painting of some basic schools in some farming societies to serve as its social responsibility for the betterment and development of coconut growing communities. Currently the husks are given to the Sekondi - Takorad prisons to enable them use for producing fiber for weaving several products such as floor mats, doormats. Coir is the fibrous material found between the hard, internal shell and the outer coat of a coconut. Other uses of brown coir (made from ripe coconut) are in upholstery padding, sacking and horticulture.

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Other Products

GKV Investment is currently pursuing the production of other products from the coconut oil value chain. Some of the products include: Desiccated Coconut powder which is chiefly used for preparing sweets, dishes, pastries, cakes, cookies, etc. In order to ensure their reliability and optimum quality, we buy coconuts directly from the local cultivators. This product is carefully processed under hygienic conditions using advanced technology and fresh and high quality coconuts with the assistance of our highly qualified and experienced staff. To ensure its purity and quality, this coconut powder is examined intensively using various quality parameters. It is known for freshness, purity, taste and long shelf life. Activated Carbon (AC) is a unique and an effective substance used for purification and for isolation and recovery of trace materials. In the last couple of decades, use of activated carbon has become an integral part in the food, pharmaceuticals, sugar, chemical and other processing industries including mining and water treatment. Raw materials having high carbon and low ash content are generally used for the manufacture of AC. In recent times, AC produced from coconut and palm nut shell have been found to be of more superior quality in relation to wood based or other materials. Coconut/palm shell have been found to be most suitable raw material for making gas adsorption grade AC and for mineral refinery purposes. Virgin coconut oil would be processed into an efficient nutraceuticals in preventing the development of diet induced insulin resistance and associated complications possibly through its antioxidant efficacy. VCO is being promoted for healthy life due to its constituent antioxidant molecules. VCO in high fructose diet markedly improves the glucose metabolism and dyslipidemia. Hair and beauty products (cosmetics). If ever there were a beauty cure-all, it's coconut oil. Uses for beauty abound inside each jar of the sweet-smelling oil. This beauty staple has a long shelf life and a number of health benefits. It's a jackof-all-trades for breath freshener, makeup brush cleaner, hair mask, homemade lip scrub, and much more. You can use it for everything from healing scars to moisturizing dry knees. Organic Fertilizers - The largest by products of coconut is coconut husk from which coir fibre is extracted. This extraction process generates a large quantity of dusty material called coir dust or coir pith. Coir pith has gained importance owing to its properties for use as a growth medium in Horticulture. Composting of coir pith reduces its bulkiness and converts plant nutrients to form.