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Eat, Play, Love: Developing a strategy for infant products category growth for Danone in Moscow
• 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.
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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
Advice for an infant balanced food on YouTube & VK groups
Tyoma products’ posters, doctors recommendations
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rod
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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