Марс (англ) лучшее решение

Integrated Minds are eager to serve MARS with business solutions of exquisite taste

Sergey Staroverov Ekaterina Palamar Nikolay Ageev Tatiana Kan

Cup Russia 2015 Changellenge >> English section Tour â„– 2

Target Market

Redirect Clients

Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

The current market situation favours Mars` aggressive expansion in the hot sauce market, but it is necessary to target the right audience to develop it rapidly Despite the current economic slump in Russia, hot sauce market looks very promising against its substitutes 8%

Increasing employment rate makes Russian value time and pleasure more than ever, especially among women.

The sauce market GDP, Russia

6%

4%

5% growth rate, 2014

2%

0%

2013

2014

2015 -7% growth rate, 2014

-2%

3 ‌However, the Russian hot sauce market is underdeveloped in comparison with the international level 70000

GDP per capita, RUB

2

•

60%

70%

64%

69%

68%

72% women men

2013

2014

2015

4 Throughout the pilot project Mars needs to target 3 main susceptible groups to bring set the market on fire.

The size of a circle is determined by the market value Canada

55000

Employment rate, in percent

1

Germany

USA

Japan

40000

Innovators 25000

Russia

Russia* Sauce consumption per capita, kg

10000 5

Summary

8

11

14

17

3 mln RUR

Early adoptors Early majority

Dolmio has a high grow potential that can be realized in three months through targeting three main susceptible groups: innovators, early adoptors and early majority

Sources: team analysis, case materials, ruxpert.ru

Changellenge >> Cup Russia 2015 >> Integrated Minds

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A sufficient influx of contacts can be attained through qualitative approach to satisfying consumers’ needs and removing consumption obstacles 1

Mars should concentrate on the following customer categories and point out their needs as well as overcome possible purchase barriers Their needs Innovators

Barriers

 New tastes of the product

Age: 18-25

 Students  Active  Open to experiments

 Absence of demand recognition

 Unusual components  Ingenious recipe

(310 thousand people)

Early adopters Age: 25-35

 Young people  Businesswomen  Lack of cooking time

 Easy cooked and fast preparation  Affordable  Nice to taste

 Lack of trust to the product

Dolmio quality

Age: 35+

 Housewives  Use trusted products  Prudent (600 thousand people)

Summary

*

 Natural ingredients

 Manifold unique recipes

 High cost of the product

 Makes cooking easier by saving time

 Lack of trust to the product

 Measured for several portions

 Healthful product  Tasty

- cost efficiency,

 Risk of rotten meal  May contain chemical components  Lack of trust to the product

- average purchase,

Growth potential

Quality of contacts*

 Wide range of tastes

(450 thousand people)

Early majority

Consumption rate

Innovators are the heavy consumers of Dolmio sauces – 0,3 kg/year

Early adopters are also willing to try sauces but less than innovators – 0,1 kg/year

 Natural flavor  100% natural components

Early majority instead do not consume Dolmio sauces for the most part

- contact multiplication effect

Consumers’ needs determination as well as purchase barriers elimination are the important drivers for the high growth potential of the hot sauce market

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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The client redirection from traditional channels to unconventional ones will raise Mars` contribution margin and increase the number of successful contacts 1

The traditional sales channels make little profit, but alt. approach can use supermarket strength to redirect clients to other channels Strength

Challenge

Super & hyper markets

High profile clients concentration

Low contribution margin

Economy & counter stores

High contribution margin

Low profile clients concentration

Solution

2 Supermarkets are ideal for new contacts if the engaged clients are lured to high-profit channels via efficient packages & stands Attract

Why to buy?  Natural  Exquisite  A win-win Where to go?

(Look at 4)  Affordable

Redirect clients 3 There is a list of conventional redirection options, but they face insurmountable obstacles and require out-of-the-box thinking Italian Shops

Few outlets

Large CAPEX

E&C stores

Low Pleasure

Sales Rep. failure

Branded Points

High costs

Technical Difficulties

Convey

4 That is why Mars should employ the alternative channels incl. complement sellers, online traders and mass event organizers Sales & Promo Channels Complement Partnerships Mass Events Online Trade

Why Yes? Mutual benefits allow great contribution margin Readiness to try out new experience at higher price

Small transaction costs and precise targeting

Summary

Mars should redirect clients from supermarkets with low contribution margin and economy stores with low profile client concentration to the high-profit channels such as complement sellers, online traders and mass event organizers

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

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Go Digital

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Be Public

Tailor Products

Assess Results

Implementation of AIDA model through digital marketing channels will bring new customers and increase purchase frequency 1

Search engine optimization (SEO) and Pay Per Click (PPC) advertising will help to draw more ATTENTION to Dolmio Key Words research

SERP improvement

PPC for instant results

Ads in Social Meida

2 More quality recipes will provoke INTEREST; social network activity, contests and real stories will create strong DESIRE

Page & Ranking of Dolmio in different Search Engines for “Spaghetti Bolognese”

    

Create a Dolmio blog Add more quality recipes Put QR-codes on the jars Share/Like/Comment Social network promotion

“My 3 Favorite Dishes with Dolmio” Contest Best story prize: a two-person trip to a Michelin starred restaurant in Italy Requirements for participation:  3 Photos + Short Story + 30 Likes

p.2, #11 p.3, #28 p.2, #18

3 Mars should establish partnerships with online stores to direct ACTION into a modern and convenient channel to get more contacts * 2015

2010

Growing online shopping sector; New-model-stores

Conventional online stores

Online Packs-ofIngredients sellers

Potential Partners

utkonos.ru 7cont.ru av.ru

domavkusnee.ru chefmarket.ru katerina.ru

Benefits

Convenient, Scheduled, Fresh Food

Pre-measured amount of high quality ingredients, no waste

2005

2000

Cost Structure, Thousands rub.

350

PPC+SEO

200

BLOGGING

150

CONTEST

We estimate this approach to bring 110.000 contacts

*Main food delivery stores

Summary

Building quality digital marketing strategy will make it possible to get 110 thd new contacts, while spending 700 thd RUR from the assigned budget

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Tailor Products

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Partnership with sauce complementary sellers can help Dolmio overcome the most frequently arising barriers on the way to consumer’s hearts and so increase the sales 1 The best ways to cooperate are to insert mutual advertising leaflets, to make cross discounts and to attach testers of sauce to complementary products What to do Why to do Complementary products Profitable since… …conversion is Costs Efficiency Both partners insert leaflets with recipes that connect their products

1,5%

Make discounts e.g. “Buy pasta - have 20%off Dolmio Bolognese”

2,5% 45%

2 These will help Dolmio to overcome the barriers…

Barriers Treatment

Makfa, Divella, Pasta Zara, Maltagliati

Chicken, ready to cook meat

Petelinka, Miratorg, Troekurovo

Pelmeni

Siberian delicacy, Caesar, Dunyasha Dr. Oetker, Buitoni, Fantasy,Casa Nostra Monini, Iberica, Vitaland

Olive oil

3 ….and reach its target audience Costs, rub 400 000

Customers receive recipes and products

300 000 I don’t know Dolmio

Customers try bonus sauce and receive the need

Dolmio is expensive

Customers purchase several bottles cheaper than usual

Summary

Different types of pasta

Frozen pizza

Attach a bonus little jar of Dolmio to partner’s products

I don’t know what to cook Dolmio with

Possible partners

Contacts, ppl Leaflets

46 314

Sales

55 181

385 620

Bonus jars

44 649

1 085 620

Total

146 144

Implementation of partnership programs will widen the consumer base and can increase the number of contacts up to 150 000 and cost approx. 1 mil rub

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

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Be Public

Tailor Products

Assess Results

Starring at TV shows and setting branded stands at public occasions can be more effective than just TV advertising and sampling because they help to overcome the customers distrust 1

Being present at some public occasions with Bolognese-selling stands is a delicate way to reach the stomach, the purse and the mind of hungry customers Where Why Result What Target customers Public Time to eat Festivals Branded van

Fairs Other open air public occasions

Barriers are broken

Branded stand

Concerts Theatres Musicals 2

People will definitely buy Dolmio next time

Customers are satisfied

Cook & sell Bolognese with Dolmio

Appearance of Dolmio at TV cooking shows is a perfect way to make housewives use it, and Calve is a good example of this idea’s efficiency Possible partners: • “Edim doma” • “Adskaya Kuchnya” • “Zvaniy Uzhin” • “Smak” Audience: Thousands of cooking women and men Age: 25-65 Summary

3

Broken barriers: • “I don’t know Dolmio” • “I don’t know what to cook Dolmio with” • “I don’t trust Dolmio”

Goals achieved: → Penetration: consum. taste the sauce → Education: consum. Understand how to cook it → Saving money: portions are paid → Advertising Both actions will result in the boost of the amount of new contacts Costs, rub Contacts, ppl

101 000

Fests

1 113 380 1 214 380

TV Total

8 250 75 000 83 250

These costs are almost covered by sales of hot pasta

Branded stands with hot pasta will do advertising while making profits, and together with the presence at cooking shows they can result in 80 000 of new contacts

Source: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

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Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

The further development of the sauce market should rely on the wider distribution of 350 gm Dolmio jars which will increase turnover by 10 %

Sales, thousand RUR`

1

The last year sales indicate that 350 gm Dolmio sauces sell almost hundred times better than 500 gm ones leaving room for growth –4%

800 600

2 At the same time the weighted distribution of the two types of products increased and decreased by 6 % respectively –6%

500 gm

+ 388%

2014

400

2013

350 gm

200

2013

0

350 gm

500 gm

+6% Weighted distribution 0%

2014

20%

40%

350 gm weighted distribution

20 2015, Q1

Summary

22 +2%

2015, Q2

Sales, thousand RUR

3 The Mars company should raise the 350 gm weighted distribution to 4 The measure will result in a tremendous turnover increase of 10 % the level of leading competitors and consider making smaller jars 400

+10 %

300 200 100 0

2015, Q1 500+ gm

2015, Q2 350 gm

Mars should tailor Dolmio products to the tastes of the Russian consumers by relying on smaller jars rather than try to change the consumption model

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

Redirect Clients

Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

Mars should tailor Dolmio promotion campaign to the needs of the Russian hot-sauce consumers to overcome cross-cultural barriers The sauces for Macaroni sell thirty four times better than those for the Spaghetti Bolognese revealing the Russian preferences Sales, thousand RUR`

1

What is the latest hot meal, which you have prepared?

+16 %

1000 800

2013 2014

600 400

2 Mars should position a line of easy-to-cook sauces for the most popular meals instead of those for the Italian cuisine

VS

+ 536%

Dolmio Meat

Dolmio Fish

Dolmio Chicken

44% meals

include fish, meat or chicken

200 0

Macaroni

Spaghetti

3 The Italian Wedding Campaign will make Dolmio products much closer to the hearts of the Russian consumers

The Dolmio go to meet Sofia`s relatives in Russia & find out new recipes!

Affinity

Overcomes Cultural Barriers

Integrity

Complies with Global Values

Utility

Shows new Sauce Combos

Carlo

Sofia

Summary

4 The promotion in compliance with the global strategy will educate the Russian consumers and boost their consumpion

Mars should tailor the Dolmio products to the tastes of the Russian consumers by relying on the most popular meals rather than try to change the consumption model directly

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

Redirect Clients

Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

The Go-Go strategy will give Mars a total of 340.000 contacts & 12% sales growth over the next three month through the digital marketing, partnerships and entertainment solutions 1

Implementation of the strategy will be conducted over the next quarter and will include the following activities: Schedule

April, 2015

May, 2015

June, 2015

Cost Efficiency

Go Digital

Budget

1. Social networking 2. Search engine optimization 3. The Italian Bolognese contest

Contacts

Make Partners

Budget 15%

1. Negotiation 2. Concluding of contracts 3. Penetration

45% Contacts

Be Public

40% Budget

1. Negotiation 2. Presence at fests 3. Presence at cooking shows

2

Contacts

The Strategy budget ensures the highest cost efficiency and number of contacts resulting in a 12% increase in the Dolmio turnover Cost efficiency, RUR per contact

Budget, million RUR

0,7

360

Digital Public

Summary

Early Majority Early Adopters

1,1

1,2

New contacts, thousand people

180

Inventors

146

340

Partners

Total

Sales growth, thousand RUR +12%

82

110

Partners 0

10

20

0 Digital

Public

Q1, 2015

Q2,2015

The Go-Go strategy allows Mars to achieve a total of 340.000 new contacts over the next three months with the balanced 3 million RUR budget and 12 % turnover increase

Source: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

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Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

Integrated Minds are experienced enough to overcome any challenge in order to implement the MARS strategy with outstanding success

Nikolay Ageev

Sergey Staroverov

Tatiana Kan

Palamar Ekaterina

Executive Chef

Head of Tasting

Cooking Analyst

Inspiration Director

Champion of Cup Moscow Changellenge 2014

Team Founder of Integrated Minds

Champion of Cup Moscow Changellenge 2014

Semi-finalist of Cup Moscow Changellenge`14

MGIMO Master`s 2nd year International Accounting

ESERP Business School Marketing Management

HSE Bachelor`s 3rd year Faculty of Economics

FU Bachelor`s 2nd year Faculty of Economics

89264220333 beovel@gmail.com

89639696350 serge.staroverov@gmail.com

89143174551 tiana_kan@mail.ru

89030136613 ekaterinica@gmail.com

Motto: Integrated Minds – a team worthy of your trust

Changellenge >> Cup Russia 2015 >> Integrated Minds

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Target Market

Redirect Clients

Go Digital

Make Partners

Be Public

Tailor Products

Assess Results

Appendix. Calculations

Source: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

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