1.5 Market Analysis
According to the Russian Union of Manufacturers of Juice by the end 2008 manufacture has concentrated in hands of four companies of giants[5]. there is a unique opportunity at the Russian market of juices. There are a lot of different players at the market, but there is no the strongly pronounced leader. The main players control 80% of the market
«Lebedyanskii» (market share 32%),
«Multun» (market share 22%),
«Nidan» (market share 17%)
«WBD» (market share 16%).
Appendix 1 shows us the structure of the market of juices in Russia.
According to the report «RosBusinessKonsulting» (Russian market of juices. RBK. Market research, 2008) the premium segment of the market is chosen by more prosperous part of consumers. In connection with growing incomes of the population the class share premium, about 2006–2008 has grown from 0,4% to 2,7%.
Drinks of an average price segment are in demand at working modern young people. The share of this segment practically has not changed in comparison with 2007 (12%). Now there is a rapid development of the bottom average and bottom price segments of the juice market. According to experts of the company in 2009 together these segments occupied more than 50% of the market.
1.6 Market Growth
According to the researchers from «RosBusinessKonsulting» (Russian market of juices. RBK. Market research, 2008) growth rate are going to be about 8% during 2009–2012.
As predicted production volume of the market of juice by the year 2012 will be 3,5 bln. liters a year. (Appendix 2)
2. Marketing Strategy
WBD will launch the highest quality of fruit juice «Seila». The strategy is to position «Seila» as a natural and healthy juice; the strategy will seek to create customer awareness regarding product.
2.1 Mission
WBD’s mission is as follows:
§ Quality: Our fruit juices are the highest quality, most nutritious food products…because we will accept nothing less.
§ Innovative: Our products have always been in the forefront of the health and nutrition wave. Innovative products, state of the art manufacturing, quality assurance and industry expertise are the bases for our past and future successes.
§ Integrity: Our customers depend on the quality of our juice products. Our commitment to the highest standard is the foundation of our customer's trust in WBD. Delivering freshly made juice to consumers depends on extensive cooperation and mutual reliance between supplier and retailer. We stand behind our product, our service and our word.
§ Reputation: Our juices have a reputation on offering the most delicious, nutritious, 100% natural with no artificial flavors, colors and preservatives.
2.2 Marketing objectives
· Market Share Objectives:
· To gain 40% of the market for soft drink industry by August 2011.
· Profitability Objectives:
· To achieve a 10% return on capital employed by January 2010.
· Promotional Objectives:
· To increase awareness of the product on the market.
· Objectives for Survival:
· To survive the current market war between competitors.
2.3 Key success factors
Key to success for «WBD» will include:
- Providing the highest quality product
- Competitive pricing
- State of the art production and packaging technology is a must in this industry
- A strong distribution network
2.4 The demographics of customers
§ Young professional, ages 25 – 45;
§ Average income of $40,000+ a year;
§ Involved in athletic activity;
§ Shop in upscale health/natural food stores.
2.5 Product
Products sold as fruit juices may be sweetened if the label states the presence of the added sugar or other wholesome, nutritive sweetening agent (saccharin is not a nutritive sweetening agent), but they should not contain added water.
Fruit juices should be manufactured only from clean, sound fruit in clean equipment. Proper preparation involves thorough washing, sorting to remove wormy or spoiled fruit, and trimming. Flies should not come in contact with the fruit or equipment.
WBD will offer a broad range of juices to suit the customer, down to the smallest detail.
The company will offer a range of innovative juices, including
§ 100% pure carrot juice, nothing added
§ Carrot and celery juice
§ Beet and apple juice blend
§ A lovely combo of beet, carrot, pear and ginger
§ Tomato, beet and ginger
§ Kiwi, apple, pear and some greens
§ An invigorating mix of apple, pear and orange
§ Carrot and orange
WBD will use organic ingredients so that consumers will get even more goodness from the drinks. For a reasonably healthy person there is therefore no need for vitamin pills nor dietary supplements: a raw juice from WBD contains the richest natural source of minerals, vitamins, enzymes and other vital trace elements that will guarantee plenty of energy and vitality to help your body neutralise toxins, boost its immune system and generally help you go through your busy day.
All drinks are freshly juiced to order and to enjoy them at their best we will recommend to consume them within 8 hours after open the bottle. Remember also that by consuming organic produce, you help preserve our planet's natural balance and protect its biodiversity.
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