MK-E0003

Publication: 05/2012

Toddynho: expanding with prestige

Danny Claro

Alexandre Salvador

Marcelo Novaes1

On a sunny afternoon in São Paulo in late 2008, Anna Teixeira is thinking about the meeting

with the executive board at PepsiCo that will take place in one week, at which the executive

team will be awaiting her proposal for expanding the Toddynho brand in Brazil. She had joined

PepsiCo four years earlier as manager of Trade Marketing and had participated in important

projects for the snack food business: implementing customized actions for large clients,

increasing the exposure of products and formulating investment plans. In early 2008, she had

assumed the functions of Product Manager for Toddynho as part of the job rotation program.

Known at the company for arriving at pragmatic solutions to problems, Anna is about to be put

to the test once again.

1 This case study was developed by Professor Danny P. Claro and co-authored by Alexandre Salvador, with the

support of the research assistant Marcelo Novaes. The authors thank Professor Irineu Gianesi for all of his suggested

revisions and the students Fernando Buriham Della Libera, Humberto Octávio de Oliveira Júnior and Júlio de

Siqueira Carvalho de Araújo Filho for all of their support. This case study is solely for the purpose of classroom

discussion and does not propose to render an opinion on managerial effectiveness or ineffectiveness or to serve as a

primary source of data.

Copyright © 2012 Insper Instituto de Ensino e Pesquisa

No part of this case study may be reproduced or transmitted by any electronic or mechanical means, including

photocopying, recording or any storage system, without the express written consent of Insper Instituto de Ensino e

Pesquisa. Violators will be subject to the sanctions set forth in articles 102, 104, 106, 107 of Federal Law 9,610 of

02/19/1998.

MK-E0003

2

There is natural pressure to maintain the brand's growth at rates above the average for the

product category. Anna comments that "the category expands through growth in both

penetration and average volume, and the challenge for Toddynho, as leader, is to capture this

new volume in a proportion equivalent to at least the brand's current market share." She knows

that, in order to grow without adversely affecting the prestige and strong appeal enjoyed among

the product's faithful public, a set of integrated actions is required. Studies conducted by

companies show that higher income levels in the base of the social pyramid and the higher

penetration of the category have contributed significantly to the market's overall growth. A

combination of increases in distribution, promotions and innovations could be the answer for

tackling this challenge. Anna must come up with an approach to present to the executive team

and must meet with her team before the end of today.

Toddynho and the flavored dairy drink market

Toddynho is a ready-to-drink flavored dairy beverage that was launched in 1982, one year

after Quaker acquired the manufacturer of Toddy (a chocolate powdered flavoring mix), which

was created by the Porto Rican Pedro Santiago in 1930. In 2001, the company Quaker was

acquired by the U.S. company PepsiCo, which had been founded over 100 years earlier and

launched its Brazilian operation in 1953.

PepsiCo products in Brazil include drink brands (Pepsi, H2OH!, Gatorade, Lipton and

Toddynho), food brands (Quaker, Coqueiro and Toddy) and snack brands (Elma Chips and

Lucky). PepsiCo is recognized for the strength and quality of its brands and by the strong

impacts of its promotions: for example, the success of Tazos in 1997, the Pepsi Twist stuffed lime

dolls and the Gatorade backpacks. The company, which has always valued the individual

strength of its brands, began in 2008 to communicate with the market "as a company", under the

slogan campaign of a commitment to the future2.

In Brazil, PepsiCo has two administrative divisions (see Exhibit 1). One is the Beverage

Division, which is responsible for managing the entire beverage portfolio and maintains, in

bottling and distribution, a partnership with AmBev based on a franchise model known globally

as franchise owned bottling operation (FOBO). This division has areas that accompany and

coordinate the activities under the partnership, specific marketing areas for carbonated

beverages (e.g., Pepsi) and non-carbonated beverages (e.g., Gatorade), as well as a department

responsible for new business, where the Toddynho team is housed. The team is responsible for

the brand strategy and coordinates the distribution activities. The execution of the production,

distribution and sales of Toddynho is delegated to the other division, i.e. Food, which has in-

house operations that produce and distribute the various brands of foods and snacks.

2 Uma marca sai da sombra, IstoÉDinheiro, Mar. 11, 2009.

MK-E0003

3

Because of its leadership position in the flavored milk market, Toddynho is the main

reference in the category3. The Toddynho brand gained strength with children and mothers and

developed its own personality that is different from the mother brand Toddy. For many,

Toddynho is synonymous with the category. According to Anna, “Toddynho is what mother's

want to give their children: milk, vitamins and love. Combined with what children want:

delicious drink and the fun suggested by the adventures of the Toddynho character." Toddynho

is found in the retail market in ready-to-drink packages of 200 ml in the flavors of traditional

chocolate, neapolitan, brigadeiro and fit (with 0% fat) (see Exhibit 2). Anna says that "there is an

intense effort to develop new flavors, which include additives with nutrients or vitamins and

changing the product presentation, with the aim of giving our target public what it wants."

In addition to Toddynho, today there are other ready-to-drink flavored dairy drinks on the

market. Nestlé, with the products Nescau and Nesquik, has market share of approximately 20%.

Unlike PepsiCo, it has opted to use for its flavored milk versions the same brands as for its

chocolate powdered flavoring mix. Since they derive from powdered flavoring mixes, the

brands Toddynho, Nescau and Nesquik take with them to the flavored milk category their

legacy of tradition and real chocolate flavor.

There are also other important Brazilian brands in the market. Parmalat, which is basically a

milk producer, has a ready-to-drink beverage called Kidlat, which also targets the children's

market. Given the legacy of the milk brands, the Parmalat flavored milk product takes with it to

the category the values of tradition and family. Danone offers Danette in the ready-to-drink

flavored milk category. Since the brand initially explored the desserts category, Danette is

widely perceived as being very creamy. Unilever has Ades Chocolate, a flavored soy milk

product that is an extension of its soy beverage line. Coca-Cola, as part of its strategy to expand

its juice portfolio, recently entered the flavored milk market with Kapo Chocolate4. The product

is an extension of the children's refreshments line and takes advantage in the flavored milk

category of the proximity with consumers developed in the mother category (see Exhibit 3 for

examples of these companies).

Regional brands

In the flavored milk market, there are also regional brands5, the majority of which are from

Brazilian dairy companies that inherited the perception of quality and proximity as the main

appeal for its flavored milks. According to Anna, “these brands are agile, flexible and tough

competitors, with lean operations and competitive prices." The regional brands include

3 Top five dos achocolatados de 2008, Revista Supermercado Moderno, Aug. 31, 2008. 4 Coca-Cola estréia em lácteos com achocolatado, Valor Econômico, Oct. 6, 2006. 5 A invasão das marcas talibãs, Exame, Jan. 1, 2003.

MK-E0003

4

companies such as Itambé, Vale Dourado and Chocoleite (see Exhibit 4 for samples of these

companies).

Itambé operates in the dairy sector and is currently the sector's biggest Brazilian-capital

player. In 2007, Itambé won the Top of Mind award from the magazine Mercado Comum and the

same award from the newspaper Folha de S.Paulo in 2006. Capturing 100 million liters of milk per

month and with over 80 associated cooperatives, it is present throughout the entire value chain.

The company produces its essential raw material, transforms it and sells various lines of final

products. Its products vary from powdered milk and sour cream to UHT milk (for ultra high

temperature, which undergoes thermal treatment to sterilize and ensure a long useful life to the

product) and chocolate flavored milk drinks. Its ready-to-drink flavored milk products are

marketed under the brand Itambynho.

There is also Vale Dourado Achocolatado produced by Vale Dourado, whose plants are

located in Brazil's Northeast, where the company has a strong presence. Like Itambé, it produces

over 1 billion liters of milk per year and has various lines of dairy products. Vale Dourado also

maintains programs with intense marketing efforts, which range from the concept of healthy

and nutritious products to a focus on social and environmental responsibility.

Chocoleite, which is based in the southern state of Santa Catarina, also produces a wide range

of dairy products, capturing over 5 million liters of milk per year. Chocolate flavored drinks

reach consumers in powdered form, in bottles and in ready-to-drink presentations, like

Toddynho. Chocoleite also seeks to identify its products as healthy, and its marketing efforts

seek to convey this message to consumers; recently it even hired the indoor soccer star Falcão for

one of its campaigns. Like the other two companies, Chocoleite also invests in social and

environmental actions by sponsoring social projects in the community that focus on health and

sports.

In the retail market, regional brands represent a way to offer low prices in certain categories

(see Exhibit 5). Retailers maintain the market leader on the supermarket shelf with the aim of

attracting traffic to the store, but the client can choose from the leading and regional brands,

which often costs as little as half as much as the leader. At the chain Econ, which has 30 stores

targeting the low-income classes located on the outskirts of Greater São Paulo, the leading

brands are displayed so that consumers can evaluate and compare them. “The client sees how

much Nescau costs and ends up buying Chocótimo, which is half the price,” said Marcos

Escudeiro, CEO of Econ6, about the chocolate flavored dairy drink category.

6 A invasão das marcas talibãs, Exame, Jan. 1, 2003.

MK-E0003

5

Almost all flavored milk drinks are chocolate flavored, are enriched with vitamins and are

packaged in a small (tetrahedron package) box with a straw. Despite the constant attempts by

brands to differentiate themselves and offer benefits, the mobility of the dairy drink market gets

smaller over time, since all brands adopt the same strategies to win over consumers. On this

point, the regional and own brands hold an advantage, since they generally are alternatives that

are less expensive than the market leaders. The challenge for Anna is to take the dispute to the

value arena and not the price arena.

Behavior of consumers

Consumers of Toddynho can be described as children from 5 to 10 years of age who like fun,

identify with "a spirit of adventure" and to some degree a "fantasy world" and place importance

on the flavor of the products. Investments in the brand must strengthen the central advantages

in the eyes of this public and of its opinion leaders. According to Anna, “the attributes and

benefits of the Toddynho brand for consumers include practicality, flavor, nutrition, availability

and variety of flavors, among many others.”

The sense of community of some Toddynho fans who are not children is notorious. There are

adults who like the products made for kids (the so-called kidults) and manifest themselves in

various ways. For example, social media such as Orkut have communities like "I love

Toddynho" that reinforce the brand's strength and presence. One person on the Internet

commented:

– Hahaha ... when I was 7 years old and the doctor allowed me to have milk and dairy

products (because before I was allergic and had serious problems) ... the first thing

I asked for was Toddynho... and it was great!! hehe ... it was love at first taste! Today I can't live

without Toddynho! I am addicted ... before I would have 10 per day! But today I control

myself ... after all, I'm a model! hehe ... can you believe that!! Kisses =)

These and other comments (see Exhibit 6) show the preference enjoyed by the brand. Many

consumers allude to the flavor and their emotional attachment to the product. As a result,

Toddynho enjoys a positive evaluation by this type of consumer in relation to competitors'

brands. Flavor and tradition appear to lead consumers (whether children or kidults) to prefer

the brand, which gives Toddynho spontaneous exposure that generates a positive buzz among

consumers. ”Everything we do must be approved by our consumers, because after all they are

the owners of the brand,” says Anna.

PepsiCo, which manufactures Toddynho, is also careful not to disappoint its consumers. In

March 2007, it identified a “potential shift in flavor”, which led to a massive recall of 13 million

MK-E0003

6

units7. Even aware of the fact that only 16,200 units (less than 1% of the total number involved in

the recall) could present this flavor shift, PepsiCo preferred not to run the risk of affecting its

image before its clients and consumers. In addition, the brand's strength also has positive

external effects. Medical diagnostic laboratories have recently begun to offer Toddynho along

with other treats (e.g., fruit juice, filled cakes and cookies)8.

The low-income class is gaining in importance as an attractive market for flavored dairy

drinks. The consumption by low-income classes of leading brands with low unit prices, such as

Toddynho, has recently enjoyed strong growth. There has been an increase in the purchasing

power of low-income groups, which have allocated a portion of these gains to brands that enjoy

certain prestige in the market, even though they tend to move towards regional and own brands

when they do not want to allocate too much of their extra income to products such as flavored

dairy drinks. The low-income segment may be one of the growth alternatives for Toddynho.

Anna must find a solution that combines the needs of these new consumers in the category with

the vocation of PepsiCo: “[...] adequately serving the bottom of the pyramid is a challenge that

goes far beyond price and cost, since there are other needs that must be met”, she says.

Communication actions

Toddynho seeks to keep a consistent communication with consumers. The character

representing the brand was created from the intensity of the emotional response of consumers.

The process began in 1986, when during a survey participants were invited to draw their

relationship with Toddynho, and many children spontaneously drew a little box as a friendly

doll. This was how the Toddynho mascot was born, and since then he has come to represent the

adventurous companion of children and mothers.

To reach children, the product targets mothers, who are concerned with the nutritional value

of the products they buy for their children. In this way, the campaigns intensely focus on this

message. For example, the Toddynho Fit campaign says: "Help keep your children healthy and

playing. 0% fat, 100% fun.” The message seeks to reach the parents of children who must

intensify their physical activities through an emotional appeal that maintains the flavor and

value of the product for children, even in the light version. The ad has two versions: one called

“zip line” that features a doll crossing using a zip line that clearly targets boys, and another

called “doll” with a rag doll doing exercises that targets girls (see Exhibit 7). Broadcast TV is also

used to reinforce the communication. Recently a commercial spot was created that depicts an

7 PepsiCo anuncia recall de 13 milhões de unidades de Toddynho, Valor Online, Mar. 9, 2007. 8 Exame. Available at: <http://portalexame.abril.com.br/gestao/m0042897.html>. Accessed on: May 15, 2009.

MK-E0003

7

adventure in which two children are invited by Toddynho to visit his factory. The campaign

slogan was “Toddynho: always delicious and more fun than ever”9.

Another variant of the campaigns seeks to reinforce the spirit of adventure, the fun and the

flavor. These focus more on the actual children, who influence the buying decisions by asking

parents to buy the product, and also make a light emotional appeal to the parents. Initiative like

“School Project”, “Fun is excellent exercise” and “Toddynho Sports Champs” (Exhibit 8) aim to

strengthen the spirit of adventure, as also does the Internet site that creates an interactive

communication channel with the public. On the site parents can access information on the

product and its nutritional value and children have a space with games and a virtual home with

the Toddynho character.

Toddynho Go to Market

The Sales Department of the Food Division at PepsiCo works with a Go to Market (GTM)

matrix10, which considers the geographic region, product segment, size and type of client and

service system (see Exhibit 9). The product segments are: Food – Quaker, Coqueiro, Toddy and

Mágico brands; Snacks – Elma Chips brands such as Doritos, Stax, Ruffles, Cheetos and

Fandangos; Flavored Milks – Toddynho and Toddy Pronto.

There are two service systems: direct and indirect. Under the direct system, clients are served

directly by the company, without any intermediate channels. For small retailers, service is based

on immediate delivery, with the sales representative delivering upon making the sale. The team

has over 1,000 sales reps under the immediate delivery model, with a pre-defined client routine,

the day and time of the visit scheduled in advance and around 20 clients served per day. The

visits are made on a weekly or biweekly basis. The team serves approximately 250,000 points of

sales across Brazil. The sales reps undergo a rigorous selection and training process to carry out

all of the activities within the deadline and with a high level of quality, while also having 60% of

their compensation linked to their performance.

Each visit by the sales rep is made in customized Fiat or VW vehicles (see Exhibit 10) that

contain the lines of flavored milks and snacks (Elma Chips). The activities involved in each

service event include counting the initial inventory, inputting data (palm top), suggesting orders

and negotiating with the retailer (based on the historical data for the point of sale: last purchase

and average inventory), closing the order, separating the order from the inventory on the truck,

issuing the invoice, conferring of the order by the retailer, arranging the products in the displays

9 Animação para Toddynho, InvestNews, Aug. 6, 2007.

10 According to Robert Dolan, GTM represents a tool for coordinating distribution channels in terms of the functions

that each exercise for delivering better value to the consumer (2000, Harvard Note: 9-599-078). In its essence, it seeks

to identify who delivers and what will be delivered.

MK-E0003

8

and refrigerators, placing the merchandising material and charging the invoice – all within 20 to

40 minutes. In short, the sales reps are multitaskers, performing the functions of driver, sales

consultant, promoter, deliverer and restocker.

The role of the sales reps as restocker is critical for ensuring the effective display of the

products, especially when they are displayed with other products from other categories and

allude to the price. All of Toddynho's appeal with children or mothers could be adversely

affected if they were displayed out of the reach (or height) of children or near alcoholic

beverages (see Exhibit 11). With frequent visits, the sales rep is able to maintain the number of

fronts on the shelves and the proper grouping of products from the same category. This is not a

simple task, given the relatively high variety (SKUs) of Toddynho products (see Exhibit 12).

At points of sales that are midsized and large, but organized, sales are made on an advance

sale basis: sale closed on one day with the delivery made on another day. To ensure the quality

of the displays at supermarkets and the continuous restocking on shelves, PepsiCo maintains an

army of promoters of approximately 500 people at these points, who restock the products on the

shelves. In addition, the good relationship of the promoter with the unit's manager provides

important support for executing the agreements between the PepsiCo managers and the head

office of the supermarket chain.

Under the indirect system, clients are served through distributors and wholesalers. The main

difference between the channels is that the distributors work with exclusivity contracts for the

category. In addition, they maintain a smaller portfolio of products and generally work with

scheduled visits and divisions by geographic area. Distributors and wholesalers generally work

on an advance sale basis. In all, there are over 50 distributors nationwide that receive all product

lines: flavored dairy drinks, snacks and food.

The sale department is divided into two regional areas: one encompasses the North and

Northeast, and the other states in the other regions of the country. In the North and Northeast,

Toddynho is distributed to small retailers through the indirect system, while in the rest of the

country the direct system is adopted. The large supermarket chains throughout the entire

country are served directly through the advance-sale system.

Points of sale

To serve its enormous target public, Toddynho must be available in various locations.

Therefore, PepsiCo works intensely with a wide variety of points of sale. With over 1,000 trucks

used by the sales representatives under the GTM direct system, PepsiCo is able to maintain a

presence in over 250,000 clients nationwide. This corresponds to around 25% of the universe of

MK-E0003

9

food points of sale. This is a relevant share, since it accounts for 80% of business volume in the

food segment. Certain other companies are able to serve an even higher number of points of sale

than PepsiCo. Companies like AmBev, Souza Cruz and Coca-Cola are able to reach around 1

million points of sale in various segments of Brazil.

One of Anna's dilemmas is to assess just how worthwhile it would be to expand distribution

in terms of the number of points of sale or to improve the performance of products at stores

where it is already there. According to her, "this is a difficult decision, since there is a point

when the effort is so big to increase the number of points that it might be worthwhile to invest in

expanding volume at existing clients."

With the structure it has today, PepsiCo serves the points referred to as off-trade

(supermarkets, mini-markets, convenience stores, and warehouse retailers) and on-trade

(restaurants, bars, bakeries and school snack bars). This classification is based on the form of

consumption: whether the person buys the product for consuming off the premises (off-trade) or

for consuming on the premises (on-trade). Other classifications of points of sales take into

account size. Small retailers include basically bakeries, mini-markets, grocers, convenience

stores, supermarkets with up to 10 checkouts, vending machines, restaurants, hotels, magazine

stands, pharmacies and schools. Meanwhile, large or organized retailers include chains of

supermarkets or hypermarkets with more than 10 checkouts.

Toddynho explores various actions at off-trade points of sale. The arrangement, localization

and presentation of the products could influence consumption decisions. Supermarket shelves,

islands and displays at service areas can also make a difference (Exhibit 13). To ensure better

exposure, PepsiCo has also used displays that allude to their icon character and promoters (see

Exhibit 14). Supermarkets offer promotions of Toddynho in their tabloids showing the discounts

in the period. Even though it is part of the supermarket shopping list, a large part of sales are

still due to impulse, as is traditional for snack foods. Visibility at points of interruption (places

where consumers are forced to wait, such as at checkout aisles) helps to significantly improve

sales of products of this type (see Exhibit 15).

Challenge posed by growth

Anna gets ready to meet with the team to prepare the expansion plan for Toddynho. She

knows that regional brands hold important local advantages, often enjoying strong local appeal

and distribution and lower prices. She also knows that there are many ways in which to grow

sustainably in the market, since maintaining the current pace of growth does not appear to be an

alternative considered by the company. Expanding the distribution network could make the

product more accessible, but Anna hesitates among the concrete alternatives.

MK-E0003

10

Anna knows that in order to grow concentrating on this front will not be enough, and the

challenge in terms of integrated communications also appear daunting. To be synonymous with

the category is not enough to capture all of the benefits of the market's growth. Some mother's

include Toddynho on their shopping lists at the request of their children, but when they arrive

at the supermarket they end up buying a cheaper alternative. According to Anna, “we could

seek out new partnerships to strengthen the distribution network or strengthen the current GTM

model”.

"For this kind of situation there does not seem to be just one correct answer. Our challenge is

first to identify the most important issues and the actions that have the best chance of success.

It's an illusion to think that you can do everything at the same time. We must establish

priorities," she thinks. With that spirit, Anna begins the kick-off meeting to formulate the plan.

"The clock is ticking."

MK-E0003

Publicação: 05/2012

Exhibits

Exhibit 1 – Organizational Chart

Food and Snacks Division

Beverage Division

MK-E0003

Publicação: 05/2012

Exhibit 2 – Variety of Toddynho products

MK-E0003

13

Exhibit 3 – Variety of flavored dairy drinks

Source: www.obaleiro.com.br/produtos/sgrd/kapo.jpg Source: www.emporiumsaopaulo.com.br/images/produtos/

prod_13550.jpg

Source: http://www.parmalat.com.br/index.php?page=

produtos&id=76&marca=1

Source: http://www.supercentral.com.br/Lancamentos/Defa

ult.asp?idnews=1235

MK-E0003

14

Exhibit 4 – Variety of flavored dairy drinks

Exhibit 5 – Price of flavored dairy drinks

PRICE LIST

Prices

Product / POS

Pão de Açúcar /

supermarkets

local markets / grocers /

mini-markets

Toddynho – Traditional R$ 1.24 R$ 1.00 - R$ 2.00

Toddynho – Brigadeiro R$ 1.24 R$ 1.00 - R$ 2.00

Toddynho – Napolitano R$ 1.24 R$ 1.00 - R$ 2.00

Kapo Chocolate (Coca-Cola) R$ 1.13 R$ 1.49

Nescau R$ 1.24 R$ 1.00 - R$ 2.00

Danette R$ 1.12 R$ 0.90 - R$ 1.49

Itambynho R$ 0.74 R$ 0.60

Vale Dourado R$ 0.74 R$ 0.60

Kidlat (Parmalat) R$ 0.93 R$ 0.75

Elegê R$ 0.93 R$ 0.75

Source: Public data gathered by the authors on Nov. 15, 2008 (www.paodeacucar.com.br and

www.cotacota.com.br) + http://www.manosdoces.com.br/definitivo/achoc.asp + http://www.e-

loureiro.com.br/website/ecm_produto_detalhar.asp?cod=1813&idi=1&moe=48&id_produto=23453 +

http://www.emporiumsaopaulo.com.br/produto.asp?cid=134&gid=826&gondola=Achocolatado+%26+Cia

&pid=15447

MK-E0003

15

Exhibit 6 – Online communities

I LOVE TODDYNHO Community

What flavor do you like the most?

– Traditional. “Toddynho is my favorite food when I am sad. It's the only thing that makes

me stronger. On the days I'm depressed, I drink 8 to 10 Toddynhos per day."

– The traditional flavor appears to be the winner.

ADDICTED TO TODDYNHO community

How do you prefer it?

– Normal... I just want to say that I hate it when I want to drink a Toddynho and they bring

me an “itambinho”, “ibituruna”, “danete”, that really makes me mad!!! I only like

TODDYNHO!!!

In response to a comment about drinking a Toddynho outside of its box:

– No way! Never!!! Dude, Toddynho has to be in the box!!!

There's an entire ritual!!!! And we devoted followers who are faithful to the community

have responsibilities and duties to the little brown box… We uphold the tradition for our

grandchildren!

The sad thing is when you see people straying off the path, drinking it in plastic cups,

and buying Leco, Garotinho, Vakinha, Moo, Danete, ExtraChoc, CarrefourChoc and other junk,

contributing to the pirating of the product!!!!!! We respect it! And all should say amen.

How do you prefer it?

– Hahaha ... when I was 7 years old and the doctor allowed me to have milk and dairy

products (because before I was allergic and had serious problems) ... the first thing I asked for

was Toddynho ... and it was great!! hehe ... it was love at first taste! =Bc today I can't live without

Toddynho! I am addicted ... before I would have 10 per day! But today I control myself ... after

all, I'm a model! hehe ... can you believe that!! Kisses=)

MK-E0003

16

Exhibit 7 – Promotion for Toddynho Fit (on the Toddynho website)

MK-E0003

17

Exhibit 8 – Toddynho campaigns and promotions

School Project:

Implemented in 2009, the Toddynho School Project was a program that involved visits to

schools that, through the website of the customer service center, requested visits, which lasted

on average one and a half hours. The aim was to present to children, in a playful and fun

context, information on nutrition and the importance of regular physical activity, as well as tips

on recycling. During the visit, students at the school participated in activities and conversations

on healthy lifestyles and proper nutrition. Following the conversations, the children participate

in games in which they learn about subjects such as recycling, teamwork and physical

resistance.

Playing is great exercise (linked to the School Project)

The campaign "Playing is great exercise" was created by Toddynho as a way to stimulate

the regular practice of physical activity by children through fun activities and games in order to

promote a healthier lifestyle. The campaign was not limited to exercise, but also focused on the

joint efforts and teamwork, healthy eating, interaction and, of course, children's health.

In this way, the campaign sought to promote conditions such as obesity and a sedentary

lifestyle in order to improve the quality of life of the children. For this, Toddynho also promotes

fun activities and health by exposing children to a calorie table that shows how much the

activities contribute to maintaining a healthy lifestyle.

Sports Champ Promotion

In this promotion, stickers were placed on the underside of the Toddynho boxes, under

the straw, which contained a multiple choice question about a sport. The aim is to instill in

children knowledge about various sports and to promote the practice of physical activity, which

was ultimately linked to the campaign "Playing is great exercise".

MK-E0003

18

Exhibit 9 – Go to Market Matrix

Directly

(In-house distribution team)

Indirectly

(Distributors)

Small POSs (up to 10

checkouts)

Immediate Delivery Toddynho & Snacks

Advance sales Food

Large POSs (Chains)

Advance sales

Food

Toddynho & Snacks

Does not exist

Exhibit 10 – Vehicles used by sales representatives under the direct system

MK-E0003

19

Exhibit 11 – Product display in refrigerators: various product categories

Exhibit 12 – Display and variety of Toddynho products

MK-E0003

20

Exhibit 13 – Arrangement and presentation of Toddynho in supermarkets

Gondola end displays

Promotional Islands Theme Gondolas

MK-E0003

21

Exhibit 14 – Arrangement of displays and promoters in supermarkets

Extra point with allusive display

Exhibit 15 – Product display in a bakery