Eat, Play, Love: Developing a strategy for infant products category growth for Danone in Moscow
Tatiana Sukhareva [email protected] +79160586985
Alena Ivanova [email protected] +79168199700
Anastasia Ryzhova [email protected] +79160430993
Zhanel Kamakinova [email protected] +79857270271
2
Executive summary Target audience Relevant ideas Special offers
Sources:
250
300
350
400
450
2007 2009 2011 2013 2015 2017
tho
u.
per
son
s
fact forecast
Target audience Market share, %
28%
51%
Gross profit, thou rub
Net income, thou rub
0
100000
200000
300000
400000
500000
600000
2015 2016 2017
+123%
2015 2017
0
50000
100000
150000
200000
250000
2015 2016 2017
Our potential is…
Increasing of infant dairy products market
9 % +5-15%
2015 (fact) capacity
Curd
Kefir
Liquid Formula
+ 9
+ 37
+ 20
Sales increase in dairy infant food , %
Buyer’s portrait • Moscow citizen • age: 20-45 • middle-range earnings • has a baby
• Advertising on TV & social networks
• Sponsorship advertising • Amazing special offers • Promotion (commercial) costs
equipment
healthy features price-quality
WANTED
+55%
+75%
-69%
Trade channels Implementation
• Creation of a new product – Tyoma Liquid formula
• Developing new flavors for Tyoma’s curds
• Modernization in retail channels
• Concentration on priority positions in the segments
• Elimination of segments’ bottlenecks
Novation
Marketing strategy
Distribution
Our proposed measures will increase total sales in dairy products for children under three and double sales for Tyoma in Moscow by the end of 2017
1 Can be reached by… 2 Which will lead to… 3
team analysis
3
• family & friends
• store & package
• doctors • TV • Internet
healthiness
taste
naturalness
o Brand
o Price
(special offers) Loyal
& exacting
Buyer’s portrait: • Moscow citizen • age: 20-45
• middle-range earnings • has a baby
End customer’s portrait: age: 6 months – 3 years
• does not make a decision • in need of a special infant
nutrition
Sources2
corner shop (51%)
90
110
130
150
20072009 2011 2013 2015 2017
tho
u.
per
son
s
fact1 forecast
Births in Moscow
Number of potential end customers
250
300
350
400
450
2007 2009 2011 2013 2015 2017
tho
u.
per
son
s
fact forecast
Target audience
Market parameters fact
(2015) capacity
Average infant dairy product consumption for children under three in Moscow, ml per child per day
230 400-450
Increasing of infant dairy products market +9% +5-15%
Danone’s dairy products market share, % 28 50
To achieve the goal of doubling Tyoma’s sales by the end of 2017 it is necessary to increase Danone’s market share up to 50%.
The potential market growth depends on an inflation rate, which is decreasing gradually, a raising level of saturation, demography and economic.
The level of saturation is quite high, but can it be risen by promotion through mass-media, pediatricians, etc.
130
-18
0 c
m
hei
gh
t
Target audience Relevant ideas Special offers Executive summary
To double Tyoma’s sales within the limited market Danone should improve brand awareness, meet parents’ special offers requirements , pay attention to product quality , taste & accessibility
As a number of births is increasing, a number of potential customers will grow to 423 thou. persons (+2,7%) by the end of 2017 1 3 Adult chooses product for a baby,
appreciates quality, has to monitor prices
As a level of saturation and a market size can not be changed significantly, Tyoma should capture 50% of market to reach the goal 2
Sources:
Trade channels Implementation
1 – Russian statistical annual (2014), 2 – Data from Nielsen, Trends in the Global Baby Food and Diaper Markets (2015)
4 Sources:
Executive summary Target audience Relevant ideas Special offers
Curd
Drink Yoghurt
Kefir
Liquid Formula
Milk
Yoghurt
Segment Category's share, %
Sales increase, %
Commentary
53
14
14
4
13
2
- 2
+ 9
+ 37
- 13
+ 20
+ 2
High-demand product
Demand saturation, sales growth
Potentially attractive segment with a strong sales growth
Stable small increase
Not in demand
Decrease in demand
Price-quality ration
Whole natural product
Child’s favorite taste
Target audience prefer to buy inexpensive natural products with their favorite flavors
Key factors Needs
Safe ingredients
Products’ diversity
Customer
case data, team analysis, Nielsen, 1 – Appendix #1, 2 – Appendix #2, 3 – Appendix #3
1 3
2 Increasing of the curds’ flavors in dairy infant food category and production of a Tyoma “Liquid formula” meets the main requirements of the target audience
Promotion channels of the Tyoma’s products allow to increase brand awareness
Channel Promotion way Reach3,%
TV
Internet
Hospital
TV-commercial, Sponsorship advertising (health programs)
Advice for an infant balanced food on YouTube & VK groups
Tyoma products’ posters, doctors recommendations
81
68
Cu
rd n
ov
ati
on
N
ew p
rod
uct
2
TYOMA Curd
TYOMA Liquid Formula
Main competitors New flavors1
Characteristics
AGUSHA
apple & banana
mixed fruit
cereals
vanilla & strawberry
For aged 6 months and more
without oils and preservatives
Convenient takeout pack
without allergic flavors
200 ML Tetra Pac
Healthy & safe product proteins & min shelf-life
Adding to Tyoma’s line a Liquid formula, flavors’ extension meet the main customers needs and special promotion channels will allow to increase brand awareness
Inexpensive ~ 30 RUB
FRUTO - NYANYA
N/A
Low price range
Trade channels Implementation
5 Sources:
Executive summary Target audience Relevant ideas Trade channels Special offers
-60 -40 -20 0 20 40 60 80
Curd*
Drink yoghurt*
Kefir*
Liquid formula
Milk
Yoghurt
Moscow Hyper/Supermarkets Moscow Superettes Moscow TT and Specialists Moscow Market
%
The CATMAN helped to understand the main priority positions of dairy products for children under 3 years old for future promo and bottlenecks to be got rid of
In 2015 Specialized stores1 demonstrated the biggest increase
in sales of prioritized segments (*) among all types of stores 1
1. Children stores (e.g. Detskiy Mir, Korablik, Dochki-Synochki), Drugstores, Markets
case data, team analysis, СATMAN manual
The CATMAN analysis revealed the priorities of each segment
It’s worth excluding all bottlenecks that has a market share less than 1% and exceeds a cumulated share 95% 3
Curd
Hyper/Supermarkets
Superettes
TT and Specialists
Drink yoghurt Kefir Milk
2
Milk 3,2 % Classic, 5% Green apple, 2,8% Biolact, 3,2% Flavor
Curd
Drink yoghurt Kefir
Kefir, 3,2%
Kefir, 3,2%
Kefir, 3,2%
• Biscuit
• Pomegranate
• Pear-apple
• Prune
Hyper/Supermarkets • Prune • Prune-banana-
apricot
• Prune; • Prune-banana-
apricot; • Apple-carrot-
prune
• Strawberry-banana;
• Apple-carrot • Apricot • Prune-banana-
apricot • Prune
Implementation
6
Get a magnet photo frame
Buy some get some free
91%
62%
Buyers when choosing a product guide price
Buyers when choosing a product guide promo
HM SM HDS AFH Proxi
special format / product
discount
gift
more for your money
buy and get one for free
tasting
Buy some earn discount
Every fourth curd
for free
Take second
with 25%
discount
For those who choose new product - Tyoma Liquid Formula (available for two months)
curd ~ 600 thou units/packs
kefir ~ 250 thou units/packs
Trolley -advertising will increase brand
awareness
N
E
W
P
R
O
D
U
C
T
+50% promotional products sales
+20% segment growth
Я
В
Ы
Б
И
Р
А
Ю
М
А
М
А
О
Д
О
Б
Р
Я
Е
Т
S
P
E
C
I
A
L
O
F
F
E
R
S
Executive summary Target audience Relevant ideas Special offers Implementation
case data, team analysis, Nielsen, Danone promo management Sources:
Trade channels
It is expecting a 50% growth of promotional product sales and 20% segment increase
Most Russian women became more attentive to special offers and discounts on infant foods
1 Planogram of Tyoma’s diary products for children under 3 years old
According to sales increase curd & kefir are the best products for using in special offers
3 2
7
Executive summary Target audience Trade channels Implementation Relevant ideas
Sources:
Special offers
Initiatives Costs, mln 2016 2017
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Creation of a new product – Tyoma Liquid formula
Developing new flavors for Tyoma’s curds
Distribution of the liquid formula though retail channels
Distribution of the curds with new flavors through retail channels
Modernization in retail channels
Advertising on TV & social networks
Sponsorship advertising
Offer “Buy some get some free”
Offer “Buy some earn discount”
Offer “Get a magnet photo frame”
30
10
250
team analysis, 1 – Appendix #4
0
200 000
400 000
600 000
2016 2015
+49%
2017
504 568 351 432
226 228
0
50 000
100 000
150 000
200 000
250 000 +19%
2015 2016 2017
241 254
46 745
168 983
Gross profit1, thou rub Net cash flow1, mln rub
Realizing the model of promotion and sales will help to double sales for the Tyoma brand in Moscow by the end of 2017
8
ALENA IVANOVA Plekhanov RUE Faculty of Mathematical Economics, Statistics and Informatics SIBUR Intern, Business
development
HQ 25% Changellenge Cup Moscow 2015
TATIANA SUKHAREVA Plekhanov RUE Faculty of Mathematical Economics, Statistics and Informatics HQ 25% Changellenge Cup
Moscow 2015
ZHANEL KAMAKINOVA
Plekhanov RUE Faculty of Mathematical Economics, Statistics and Informatics ECO Solution Cup 2016
winner
Plekhanov RUE Faculty of Mathematical Economics, Statistics and Informatics
ANASTASIA RYZHOVA
BROUGHT TO YOU BY
9
APPENDIX
10 Sources:
APPENDIX #1: New curds’ flavor opportunities
9%
9%
9%
8%13% Value, %
OTHERS APRICOT & CARROT MIXED FRUIT APPLE & BANANA
27%
Units, %
21% 12%
20%
PEACH CEREALS
VANILLA &
STRAWBERRY
9% 13% 13% 28%
10%
case data, team analysis
11 Sources:
APPENDIX #2: Competitors’ analysis in liquid formula segment
Age Product Weight, ml Price, rub Ccal* Proteins*, gr Disadvantages
> 6 months
NAN-1
AGUSHA 204
2*200
~ 30
110-120
135
268
2,9
5,0
Composed of fat oils
Expensive, too big weight, composed of preservatives
case data, team analysis
* - for the whole product
12 Sources:
APPENDIX #3: Coverage calculation
Channel Initiative Type TA share Total reach
TV
Sponsorship advertising
Tabletka 0,10
0,31
0,81
O samom glavnom 0,12
Zhit zdorovo 0,14
Ads (prime-time) Pervy kanal 0,30
0,72 STS-Media 0,60
Internet
VK theme groups
Children 0,65
0,54
0,68
Child Nutrition 0,85
Family and children 0,81
YouTube theme channels 0,31 0,31
team analysis, TNS data, YouTube Statistics, VK statistic
13 Sources:
APPENDIX #4: Computations
team analysis
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