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7/30/2019 Fmcg Pdct in cis
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NAME
JAY PATEL
2IIPM-AHMEDABAD
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INTRODUCTION
CIS stands for Commonwealth Independent States which
comprises 15 counties.
Russia has about 70% of manufacturing among all the
countries.
Objective:- On mutual recognition of certificates in respect of
Goods which are subject to mandatory for certification.
Inter trading is the prime objective.
Russia is the 12th largest economy in the world by nominalvalue today and the seventh largest by purchasing power
parity .
IIPM-AHMEDABAD 3
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Who are CIS Countries?
IIPM-AHMEDABAD 4http://cde.mtuci.ru/distance/cis_countries_map.htm
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FMCG Products in CIS Countries
Fast Moving Consumer goods are sold quickly and
relatively low cost.
FMCG sector is a huge growth market.
PEPSICO is growing at Double digit sales growth ratein CIS countries.
IIPM-AHMEDABAD 5http://www.webclamor.com/increased-consumption-but-low-profit-for-fmcg-sector/
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IIPM-AHMEDABAD 6
20%
9%
2%
9%
1%8%
29%
5%
9%
5%3%
Structure of Consumption of selected products in
2010
DAIRY PRODUCTS
SOFT DRINKS
PASTA,KETCHUP,BOUILLON CUBES
SNACKS
FAT PRODUCTS
PERSONAL CARE
MEAT PRODUCTS
HOT DRINKS
CONFECTIONERY
FROZEN FOOD
WASHING PRODUCTS
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Product of
ALLOYS Company
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Market Research
IIPM-AHMEDABAD 8
171286
146741
21338
2060
381
Tea
Black Tea
Green Tea
Specialty Tea
Other Tea
2010 sales of Tea by Russia(in
Tonnes)
Forecast of Tea Volumes by Sub-sectors: 2007-2012
Tonnes 2007 2008 2009 2010 2011 2012
Tea 161441 164962 168206 171286 174318 177255Black Tea 141450 143382 145098 146741 148351 149892
Green Tea 17,420 18,814 20,131 21,338 22,512 23,638
Fruit/herbal Tea 2237 2415 2611 2825 2060 3317
Other Tea 334 351 367 381 395 409
309
309
216
214
205
Russia
UK
US
Pakistan
Japan
Major Tea Importers of World
(US$ in Millon)
www.aginskyconsulting.com Page
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Market Research
Categories India RussiaMarket size in terms of retail value (in millions of US$) 876.4 3,266
Market size in terms of retail volume (in millions of kg) 226.04 161.44
Growth rate in terms of retail value (2006-07) 3.50% 12%
Growth rate in terms of retail volume (2006-07) 2.60% 2.30%
Per capita consumption (per kg) 0.7 1.3
Average retail price (in US$ per kg) $3.90 $20.20
Growth rate in retail price (2006-07) 0.90% 9.50%
IIPM-AHMEDABAD 9
Comparison of the Russian and Indian tea markets
www.aginskyconsulting.com Page
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Competitors
Marketing Research
Normal
Taste &
Preferences
Companys Vision
& MissionWealth
& Profit
Resources
Handler &
Sponcerers
Orimi Trade
Ahmad Tea Fabrika
Unilever SNG
10IIPM-AHMEDABAD
5csAnalysis
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PEST Analysis
Change in Technologyis fast
SC is well develop
CSR Trends in CISCompanies
CRM is not favorable inCSR Companies
CIS Countries have agood Growth Rate
highest tea consumersin the world
Rules & Regulation arestrict for Trading theproducts other thanCIS Countries
Political Economical
TechnologicalSocial
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4Ps Analysis
Scope forPromotions arewide
Russia
Ukrain
QualityconsciousMarket not Priceinfected market
Tea- Product
Beveragesegment
Product Price
PromotionPlace
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SWOT ANALYSIS
Strengths
- Scale
- Home Market GoodCondition
- Technological Pioneers
- Focus on Discounts,Quality
Weaknesses
- International presence &Profit
- Low Penetration in EU
-Lack of internationalexperience
Opportunities
- Growing as superdistributers
- Product Diversification- New Markets( Russia, US)
- E- commerce
Threats
- To large To manage
- Inter nationalization
Cost- Union opposition
- Not present in largecommunities
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Market Research
Competitors Analysis
The top five players in the Russian tea market,
namely
Orimi Trade
Ahmad Tea Fabrika
Unilever SNG
Mai Kompanva
Akbar bros Ltd.
They contributed to more than 50% of the total sales in
2010.
IIPM-AHMEDABAD 14
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SCM Analysis
SCM system Analysis ( In $)
Particulars Auction Export Local sale to retailer Sale to Russian Distributor sale to russian retailer
Cost(E) 1.25 1.25 1.25 1.25 1.25
Revenue 1.62 2.45 2.9 7 10.5
Marketing 0.25 0.5
Import duty 1 1
Shipping Charges 0.01 0.01
Middlemen expenses 1 1
Trade Promotion 0.25 0.5
Profit 0.37 0.95 1.15 3.49 6.74
IIPM-AHMEDABAD 15www.aginskyconsulting.com Page
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Market Research
IIPM-AHMEDABAD 16
Brand, 3.1125
price, 2.7
quality, 3.075
packaging, 1.087
Advertisement,
0.35
0
0.5
1
1.5
2
2.5
3
3.5
0 1 2 3 4 5 6
Factor Affecting Purchase of Tea
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Market Segmentation
First Preference to
Russian Market
Than on other Countries like Ukraine Market
Kazakhstan
Belarus
Azerbaijan
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Target Market
Russian Market
Russia is the largest market for tea in the world, both in
terms of all tea varieties, as well as for just black tea.
Per capita consumption of tea in Russia was 1.3kgcompared to the average global per capita
consumption of tea, which was 0.3 kg.
Retail prices for tea in Russia are relatively high and
growing.
growing demand for premium specialty and healthy tea
varieties
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Strategy of Alloys in CIS
Product
First Preference to
Normal Tea
Than on other tea like
Black Tea
Green Tea
Fruit / herbal Tea Other Tea
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Strategy of Alloys in CIS
Price
We use price penetration backed by cost plus
price approach
In which a manufacturer sets a relatively low price
for a product in the introductory stage of its life
cycle with the intention of building market share
than slowly and gradually by way of innovation
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Strategy of Alloys in CIS
Place
First Preference to
Hotel Industry & cafeterias (one tea Hotel is equal to
200 homes)
Than on other like
Individual Customer
Corporate Offices
Tea shops
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Strategy of Alloys in CIS
Promotion
Events
Advertisements
Personal Selling
Free Sample Pack
Shelf space Promotion( By way sponsors)
E- Advertising
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CONCLUSION
Positive macroeconomic trends in Russia,
including
a rising GDP
low inflation
an uptick in consumer spending
attractive operating environment
Good consumer products market structure that allows
for healthy, sustainable margins.
Zindagi promises the Supreme quality Tea.
Zindagi will be a great success if it is launched.
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