CHOCOLATE SEASONS: A STRATEGY TO INCREASE CHOCOLATE SEGMENT SALES DURING KEY SEASONS
Manuchehr Avgonov • KIMEP University • 3rd year student • Finance & Accounting • Motivator • Source of bright ideas • Creativity and positivity of the team
Dilshod Akilov • KIMEP University • 4th year student • Finance & Marketing • Brain of the team • Source of the best ideas and comments
Zarrina Yunuszoda
Oybek Rahimov
• KIMEP University • 4th year student • Finance & Marketing • Hardworking member and truly leader of the team • Perfectionist and motivator
• KIMEP University • 4th year student • Finance & Accounting • Hardworking and dedicated • Solution oriented
2
Executive Summary
Problem Analysis
Improvements
Pricing Strategy
In-store Marketing
Realization of the following strategies will lead to a 21% increase in Sales Value of Mars by 2015 in Kazakhstani chocolate market
RESULT
A. Korkunov 60%
Strategies
Improvement of brands
Dove 21%
Bars
Aggressive marketing campaign
Improvement of in-store marketing
Mass Media Marketing in Cinemas
60%
Modern Trade
Source: 1. Team’s calculation (refer to the attached Excel file)
Chocolate bars (Snickers, Twix, Bounty, Mars) will increase by about 6% and M&M’s by 5%.
3
Executive Summary
Problem Analysis
Improvements
A. Korkunov and Dove are the lowest performing brands in the portfolio
Pricing Strategy
In-store Marketing
However, the segments they are included in have high share in the Kazakhstani chocolate market
Sources: 1. Refer to the attached Excel file (sheets: “KZ market”, “Mars portfolio”)
4
Executive Summary
Problem Analysis
Improvements
Pricing Strategy
SWOT Analysis of A. Korkunov
Low product and brand awareness Survey results
Focus group
What product do you think of when you hear "A.Korkunov?" A chocolate box
18%
41% 41%
In-store Marketing
Nothing, I don't know what it is I have heard about it, but I'm not sure what it is
100 80 60
What drives people to buy certain chocolate assortments 100 85
85 70
65 50
65
Opportunities • Expansion into new market segments • Chances to increase market share • Kazakh population prefer Russian brands
40
40
30
20 0 Taste A.Korkunov
What is the first thing that comes to your mind when you hear the word "Dove"?
Packaging Price Merci Rakhat Products Rafaello
Strength and Weaknesses of “Dove” among tablets after people have tasted
Soap
Strengths • Genuine taste • Premium brand
80 60
Chocolate
40 20
78%
Other Answers
0 Taste Dove
Packaging Alpen Gold
Roshen
Price Nestle
Threats • High level of competition
SWOT Analysis of DOVE
100
7% 15%
Weaknesses • Inactive promotion • Poor design and packaging • Low brand awareness
65
55 45
Strengths • High quality • Russian name – familiar product for Kazakhs
Opportunities • Chances to increase market share by introducing new designs specific to any holiday • Conducting promoactions inside stores
Weaknesses • High price • Low product/brand awareness • Poor design/package • No marketing activities Threats • High level of competition
5
Executive Summary
Problem Analysis
Improvements
Pricing Strategy
In-store Marketing
SOLUTION: Put forward an aggressive marketing campaign Advertising expenses for 2015*
A.Korkunov Television 687,447 KZT Radio 48,715 KZT Cinema 212,400 KZT Internet 36,665 KZT TOTAL 985,228 KZT
Other initiatives for consideration
Snickers, Twix, Mars, Bounty
Dove
Television 687,447 KZT Cinema 212,400 KZT Internet 36,665 KZT TOTAL 936,512 KZT
Introduce a new small pack of A. Korkunov
Cinema 212,400 KZT
TOTAL Movie ticket branding 240,000 KZT
Marketing Expenses
2,432,220 KZT
TOTAL 510,480 KZT
Sources: 1. Refer to Supplement 2 & 3 or the attached Excel file (sheets: “A.Korkunov Marketing”, “Dove Marketing“) 2. www.sharaina.kz/alma-tv-v-almate; www.sharaina.kz/ntv,-ren-tv,-rtr---kabelnaya-set-a; www.sharaina.kz/reklama-v-kinoteatrah; www.kinopark.kz/about/kinopark-business.php * in thousands KZT
Give-aways
Social responsibility Specialized M&M’s store
6
Executive Summary
Problem Analysis
Improvements
Pricing Strategy
In-store Marketing
A.Korkunov
Dove
Reintroduce A. Korkunov brand to Kazakhstani market
Target audience is more price sensitive •Competitors’ weight of a tablet – 90g •Dove’s weight – 100g •Weight reduction – by 10g
Weight reduction
Decrease in cost
• Weight reduction will lead to decrease in cost
• Decrease in cost will lead to selling price reduction
Higher sales
• Price decrease - higher sales
Decrease in price
Rapid Penetration
• Re-entering the market with a lower price will increase the market share
Product Bundling
• Sales will increase, when a bundle of products are sold in one cheaper package
Psychological Pricing
• Prices ending in 9 are more effective they are able to outsell even lower prices for the exact same product**
Psychological Pricing
• Prices ending in 9 are more effective they are able to outsell even lower prices for the exact same product
Source: 1. Supplement 1 2.Quantitative Marketing and Economics research, 2014
7
Executive Summary
Problem Analysis
Improvements
Cross – Promotion
Pricing Strategy
In-store Marketing
Special Holiday Designs
(to put mutual efforts to have mutual benefits)
• • •
To support each other in different events, shows, promoactions To include each other’s brands on own billboards, flyers, advertisement and etc. To introduce receipts-branding
Degustation
• Most people are not aware of the taste of the chocolate, even though brand name is known. • Taste/quality is our strength! • To conduct “Guess&Win” game Source: 1. Supplement 1
• To offer special types of design specific to each Kazakhstani Holiday • March 8, New Year, Nauryz, Valentine’s Day
Creative Shelf Designs
• Creatively decorating shelves to differentiate from other competitor’s brands products • E.g. Create display stands, small chocolate huts, distinguish shelf with the ribbon, etc. 8