Published September 28, 2010
Brewing a recipe for success
Viz Branz has plans to further build loyalty and awareness for its brand, reports JASLENE PANG
WITH the 3-in-1 recipe of bad weather, drought and fires, prices of food products such as coffee have soared in recent weeks. But instant beverages manufacturer and distributor Viz Branz Limited has been trying to brew its own recipe of success regardless of such happenings. Viz Branz's chief operating officer, Soh Puay Khong said: 'When prices increase because of shortage, everyone faces the impact on their margins. So whoever manages the production and operating cost better would survive more easily. However if the high prices persist, there is only one solution - increase selling price. This is where the brand name comes in. A strong brand will find the price adjustment easier to be accepted by consumers. A weak brand can adjust its price only after the brand leader has done it.
Mr Soh: A strong brand will find the price adjustment easier to be accepted by consumers. A weak brand can adjust its price only after the brand leader has done it. Brand leaders determine the timing and magnitude of the adjustment
'In short, the market will adjust prices accordingly based on supply and demand. Brand leaders determine the timing and magnitude of the adjustment. Weak brands can only follow - if they still survive before the brand leaders decide on the adjustment.
'This is why brand building is important.'
And because of the importance of brand building, Mr Soh says that Viz Branz has plans to further build brand loyalty and awareness for its brand.
He says: 'We are very particular about branding. That is also why we call ourselves Viz Branz.'
'In sponsorships, one shouldn't look at immediate returns. You also have to carve your own category and once you've determined it, you have to be a firm believer in it and be consistent . . . Ideas can be changed a bit but what should remain consistent is the image of our brands.'
- Mr Soh
To build brand loyalty, Viz Branz has been adding a flavour of durian - not just any D24, but Singapore's Esplanade - into its brands.
Viz Branz became a supporting sponsor for Esplanade's annual da:ns festival - a festival comprising the classical and popular dance performances - last year. It contributed funds that went towards the running of the festival's programmes and also associated two instant coffee brands under its umbrella - CappaRoma and Cafe 21 - with the festival.
Mr Soh explains: 'With so many brands of instant coffee mixes available in the market, it can be challenging trying to make our products stand out. Through this sponsorship, Viz Branz not only helps to promote an appreciation of the arts among the general public, but also succeeds in differentiating our brand's image from our competitors'.'
The company has four production plants in Singapore, China, Myanmar and Vietnam and manufactures and exports over 35 product lines of coffee, tea, cereal beverages and snack foods. It also provides contract manufacturing for private labels and flexible packaging printing services to third parties.
Viz Branz is now planning to build in markets where it already has a strong presence. For example, it has recently set up a non-diary creamer - a major raw material used in both 3-in-1 and 2-in-1 beverages - plant in Singapore in 2008. It is also stepping up expansion plans into secondary markets, especially in China.
But, says Mr Soh, feedback from customers has led Viz Branz to feel that it was going in 'the right direction'. Hence the company is committing to a longer sponsorship period to 'reinforce' its brand image.
'We believe this move will translate into commercial benefits for us eventually,' says Mr Soh.
The number of local companies supporting Esplanade's presentations has increased from five companies in 2004 to 26 companies this year, three of which are small and medium enterprises (SMEs).
Mr Soh explains: 'By carrying out sponsorship in Singapore, I think that the long-term implication is more effective.'
Sponsorship also allows the company to be seen as socially responsible. I think many brands believe in this. Recently, some big brands have self-created sponsorship. They support famous musicians or sportsmen without any organisation taking the lead.
But he readily admits that companies cannot ignore traditional media channels to get their message across. 'Both should come together,' he said.
Viz Branz went on to be a supporting sponsor of Huayi - Chinese Festival of Arts 2010 and inked a three-year agreement to sponsor Esplanade's da:ns, Huayi and Mosaic festivals. Even so, sponsorship is not just about giving money. Rather, says Mr Soh, sponsors should be 'active'. For example, Viz Branz initiated the printing of Esplanade's da:ns festival, Huayi - Chinese Festival of Arts and Mosaic Music Festivals' logos on five million product packets that will be delivered for sale at retail outlets throughout the three-year sponsorship contract.
To complement that, instant coffee samples in specially designed packages that reflect the spirit of the respective Esplanade festivals will also be distributed to the audience after performances.
These activities are in addition to the over $300,000 Viz Branz has pledged to the centre for its three festivals.
Choosing the correct event to sponsor is important, says Mr Soh. Viz Branz chose to associate CappaRoma and Cafe 21 because the characteristics of the two products complemented the spirit of da:ns festival. CappaRoma and Cafe 21's products provide consumers with healthier choices through options such as instant coffee mixes with lower sugar and fat content, drawing a parallel with the da:ns festival which also celebrates a healthy and active lifestyle.
Mr Soh says: 'In sponsorships, one shouldn't look at immediate returns. You also have to carve your own category and once you've determined it, you have to be a firm believer in it and be consistent.
'Ideas can be changed a bit but what should remain consistent is the image of our brands.'