Dteam

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%.

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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”)

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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

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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

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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

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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.

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