How to create a successful brand in the Russian ice cream market? Supplemented version of 2006

Date: July 22, 2006
Pages: 159
Price:
US$ 1,980.00
Publisher: Proriv Company
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Report type: Strategic Report
Delivery: E-mail Delivery (PDF), CD-ROM Mail Delivery
ID: H13695C0A8EEN
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How to create a successful brand in the Russian ice cream market? Supplemented version of 2006
Methods of the research:

1. Depth interviews with representatives of large and medium Russian companies producing ice cream, owners of brands, which became popular in the Russian ice cream market. Interviews with representatives of more than 50 companies were conducted.

2. Analysis of information relating the Russian ice cream market, which has been published in the Internet and mass media.

3. Qualitative investigation. Depth interviews with ice cream consumers (sampling – 50 respondents). The goals of the interviews were the following:

- reveal motives of their choice of ice cream marks and then segment consumers on this basis (at the next stage of the quantitative investigation);

- reveal non-satisfied needs and hidden expectations of consumers;

- reveal essential perception pecularities of different kinds of ice cream and brands in this market.

4. Standardized interviews with ice cream consumers (representational sampling in Russia – 800 respondents). The goals of this work were the following:

- find perception maps of the most popular ice cream marks in the Russian market. There were drawn up perception maps for 22 most popular ice cream marks at the national level;

- evaluate proportion of buyers segments, which were found on the basis of the main choice motive;

- carry out estimation and analysis of supplementary motives, which influence the choice of an ice cream mark.

Abstract:

The present research has been carried out with the purpose of analysis, generalization and classification of experience of Russian enterprises in the area of ice cream branding. As a result of the research, a marketing and branding strategies matrix has been worked up. It is used or can be used by Russian ice cream manufacturers. Thus, after having analyzed this research, every enterprise can choose proper marketing or branding strategies, taking into account its own development features and resources as well as expectations of ice cream consumers.

Mistakes which have been already made by Russian ice cream vendors in brand creation and causes of their success and achievements – this is exactly the material, which can assist you to the utmost by creation of an effective strategy for your enterprise. So this material is the subject of the present report.

Also the report presents consumers` perception maps of 22 main Russian ice cream marks. The causes of success and failure of these brands and their future trends and potential are analyzed in detail. On the basis of the analysis carried out new market possibilities for the existing marks are described, as well as opportunities of new marks creation which will be headed towards non-satisfied consumers` expectations.

The description of the research results opens with examination of the Russian market tendencies and discussion of the role of branding in the market development and success of individual enterprises.

The major reasons of the ice cream market stagnation have been made clear. The conclusion is that the main reason of the ice cream market stagnation is constant slippage of ice cream consumers every year. In the absence of strong and attractive brands ice cream doesn’t meet competition against substitute goods (beverage foods, beer, snacks, confectionery) with highly developed branding.

Further prevalent peculiarities of branding in the Russian market are stated. Among them such specific things are worse to be mentioned as «don’t care about tomorrow», «operations in the market result from the top managers` views or prejudices but aren’t based on dry facts in the market», «intuitive branding». Each of them is well founded and proved; the appropriate extracts from depth interview with representatives of enterprises are given.

And the prevalent prejudices in branding become the subject of investigation.

Then detailed consideration and classification of the marketing and branding strategies, which are used by Russian ice cream manufacturers today, follow. Strategies are shown on real examples – existing goods, ice cream marks.

The cross-branding strategy, which is often used nowadays is considered in detail (use of well-known and popular other’s brands for launching own products, for example, the mark J-7 and Prostokvashino, company AlterWest).

We also focus attention at strategies of creation and development of regional brands. Regional brands mean the brands which are oriented not to the national level but to individual regions and features of ice cream consumption in these regions are taken into consideration. Several variants of regional strategy of branding are presented, which can be used in many typical Russian province centers.

Then segmentation of ice cream consumers according their motive of ice cream mark choice is given and typical marketing strategies aimed at satisfaction of needs of each group are considered.

Development strategies of the most well-known Russian marks are considered from the point of view of buyers expectations. The buyers segments have been divided according to their motivation. As arguments are used citations from depth interviews with executives of enterprises – authors of marks as well as perception maps of marks (obtained from the polling).

Further consumers` perception of 22 most well-known Russian ice cream marks is considered in detail.

Finally ratings of reputation, consumption and appeal ratio are given (the indicator has been elaborated by «Proriv” specialists - it has been never proposed before) for the considered ice cream marks within the range of Moscow as well as for the European part of Russia entirely.

List of charts

Chart 1. Major national measures in the year 2005

Chart 2. Ice cream production in RF in 1996-2005

Chart 3. Growth rate of the ice cream market from 2001 to 2005

Chart 4. Ice cream consumption in RF in 1996-2005

Chart 5. Number of ice cream consumers against the population of RF in 2000-2004

Chart 6. Ice cream consumption by real consumers in 2000-2004

Chart 7. Market structure by ice cream kinds

Chart 8. Market structure by ice cream types

Chart 9. Market structure by ice cream types

Chart 10. Shares of the market by major ice cream manufacturers

Chart 11. Shares of the Moscow market by major ice cream manufacturers

Chart 12. Shares of the St.-Petersburg market by major ice cream manufacturers

Chart 13. Preferred kinds of ice cream in winter, Moscow

Chart 14. Ice cream sales volume increase by the company Inmarko, 2002-2005

Chart 15. Ice cream sales volume increase by the company Talosto, 2003-2005

Charts 16-18. Ice cream part in sales volume by the company Talosto. Ice cream sales volume mix by the companies Talosto and Metelitsa.

Chart 19. Investment into the production plant development, holding Snezhny gorodok

Chart 20. Estimation of the ice cream mark J-7 by consumers, number of consumers, who single out the called characteristics in % of the total number in the polling

Chart 21. Estimation by consumers of the fruit ice cream which possess adequate price, different marks

Chart 22. Estimation by consumers of novelty value in the most popular ice cream marks (average in the 5-point scale)

Chart 23. Estimation by consumers of eccentricity and uncommonness value in the most popular ice cream marks (average in the 5-point scale)

Chart 24. Estimation by consumers of customary and reliability value in the most popular ice cream marks (average in the 5-point scale)

Chart 25. Estimation by consumers of significance of nostalgic value in the most popular ice cream marks (average in the 5-point scale)

Chart 26. Estimation by consumers of value of «elite, prestigious » in the most popular ice cream marks (average in the 5-point scale)

Chart 27. Estimation by consumers of value of «reasonable price» in the most popular ice cream marks (average in the 5-point scale)

Chart 28. Estimation by consumers of the most popular ice cream marks by the characteristic «my child likes it» (average in the 5-point scale)

Chart 29. Estimation by consumers of the most popular ice cream marks by the characteristic «convenience» (average in the 5-point scale)

Chart 30. Estimation by consumers of major significances in the image of the brand Alyonka (average in the 5-point scale)

Chart 31. Estimation by consumers of major significances in the image of the brand Venecia (average in the 5-point scale)

Chart 32. Estimation by consumers of major significances in the image of the brand Lakomka (average in the 5-point scale)

Chart 33. Comparison of Estimation by consumers of major significances in the image of the brands Lakomka and Borodino (average in the 5-point scale)

Chart 34. Estimation by consumers of major significances in the image of the brand Rosochka (average in the 5-point scale)

Chart 35. Estimation by consumers of major significances in the image of the brand 48 kopeyek (average in the 5-point scale)

Chart 36. Estimation by consumers of major significances in the image of the brand Extrem (average in the 5-point scale)

Chart 37. Comparison of Estimation by consumers of major significances in the image of the brands Extrem and Maxibon (average in the 5-point scale)

Chart 38. Estimation by consumers of major significances in the image of the brand Voshebny Fonar (average in the 5-point scale)

Chart 39. Comparison of Estimation by consumers of major significances in the image of the brands Voshebny Fonar and Yolochka (average in the 5-point scale)

Chart 40. Estimation by consumers of major significances in the image of the brand Serebryany Dozhd (average in the 5-point scale)

Chart 41. Estimation by consumers of major significances in the image of the brand Prostokvashino (average in the 5-point scale)

Chart 42. Estimation by consumers of major significances in the image of the brand Slitki (average in the 5-point scale)

Chart 43. Estimation by consumers of major significances in the image of the brand Oasis (average in the 5-point scale)

Chart 44. Estimation by consumers of major significances in the image of the brand La Femme (average in the 5-point scale)

Chart 45. Estimation by consumers of major significances in the image of the brand Krutyshka (average in the 5-point scale)

Chart 46. Estimation by consumers of major significances in the image of the brand Russky Kholod (average in the 5-point scale)

Chart 47. Estimation by consumers of major significances in the image of the brand Bodraya Korova (average in the 5-point scale)

Chart 48. Estimation by consumers of major significances in the image of the brand Magnat (average in the 5-point scale)

Chart 49. Estimation by consumers of major significances in the image of the brand Luxus (average in the 5-point scale)

Chart 50. Estimation by consumers of major significances in the image of the brand Pyanaya Vishnya (average in the 5-point scale)

List of tables

Table 1. Knowledge of consumers about the most well-known ice cream marks and their consumption in Russia, in % of the entire population

Table 2. History of the company Talosto

Table 3. Management in the company Talosto

Table 4. Far-famed key ice cream brands of Talosto

Table 5. Rating of fruit ice cream marks by consumers

Table 6. Number of ice cream consumers who increased/ decreased their consumption of different kinds of ice cream in % of the entire consumers number in a typical Russian region (Kurskaya province)

Table 7. Segmentation of ice cream consumers according to their major motivation

Table 8. Description of consumers segments- «experimenters» and «eccentrics»

Table 9. Description of consumers segments - «conservatives»

Table 10. Description of consumers segments - «nostalgics»

Table 11. Description of consumers segments «who buys the best, the most expensive ice cream»

Table 12. Description of consumers segments - «rationalists»

Table 13. Description of consumers segments - «who buys ice cream for children»

Table 14. Description of consumers segments - «who buys convenient ice cream»

Table 15. Rating of brands according to knowledge, number of ice cream consumers, who know well about brands which they buy in % of the total number of consumers in Moscow

Table 16. Rating of brands according to consumption, number of ice cream consumers, who know well about brands which they buy in % of the total number of consumers in Moscow

Table 17. Rating of brands according to the appeal ratio

Table 18. Rating of brands according to consumption, number of consumers, who know well about brands which they buy - in % of the total number of consumers in the European part of Russia

Table 19. Rating of brands according to consumption, number of consumers, who know well about brands which they buy - in % of the total number of consumers in the European part of Russia

Table 20. Rating of brands according to the appeal ratio

Introduction

Part 1. Main tendencies in the Russian ice cream market development

1. Economic situation in the foodstuff markets

2. Degree of consolidation of the ice cream market

3. Characteristic features and trends of the Russian ice cream market

4. Market capacity

Ice cream production

Ice cream consumption

Market capacity

5. Market structure

Consumers’ preferences in types of ice cream

Consumers’ preferences in kinds of ice cream

Knowledge about different marks of ice cream and their consumption

Shares of the market of the major Russian ice cream manufacturers

Shares of the Moscow market of the major ice cream manufacturers

Shares of the St.-Petersburg market of the major ice cream manufacturers

6. Features of ice cream consumption in winter

7. Consummation of the state standard GOST for ice cream.

Advantages and disadvantages.

8. Problems of the market development

9. Trends in the market consolidation

Acquisition of new assets by the company Talosto

A new player in the Russian ice cream market – company Iceberry

10. Profiles of leaders of Russian ice cream market

Inmarko

Talosto

Iceberry

Russky Kholod (Russian Cold)

Nestle

Snezhny Gorodok (Snow Town)

AlterWEST

Chelny-Kholod (Chelny-Cold)

Lipetsky cold-store combine

Belgorodsky cold-store combine

Part 2. Marketing strategies of Russian ice cream manufacturers

I. Features of branding in the Russian ice cream market

II. Prejudices in branding

III. Branding strategies

1. Intuitive search of niches in the market in the field of taste, shape and price (substitution of democratic analogues for expensive imported goods).

Examples of discovery of empty niches in the field of taste

Examples of discovery of empty niches in the field of price

Examples of discovery of empty niches in the field of shape

2. Extend of potentialities thanks to effective distribution (among the ice cream sorts, which possess low consumers loyalty).

3. Imitation of the leader.

4. Popularization of the brand by means of a mass ad campaign.

5. Use of cross-branding (acquisition of rights for others brands, which have already gained wide popularity).

Failures in the area of cross-branding

6. Positioning of the ice-cream mark on the basis of behavioral features, values and choice motives, which are characteristic for target groups of consumers.

Part 3. Regional marketing and branding strategies

I. Characteristic features of ice cream consumption in regions.

II. Characteristic features of branding strategies for regional marks.

III. Successful marketing strategy in the typical regional market.

IV. Creation of brands, which are assigned for individual regional markets.

Part 4. Effective branding strategies in the Russian ice cream market

I. Brand development strategies, which are directed to consumers –

«experimenters» and «eccentrics»

Strategy of positioning of the brand Bodraya Korova

Failures by creation of brands, which are of interest for consumers as «new»,

«eccentric, uncommon»

II. Brand development strategies, which are directed to consumers – «conservatives».

III. Brand development strategies, which are directed to consumers – «nostalgics»

Strategy of positioning of the brand Lakomka

IV. Brand development strategies, which are directed to consumers – «who wants a prestigious, elite mark»

Strategy of positioning of the brand Luxus

V. Brand development strategies, which are directed to consumers – «rationalists».

VI. Brand development strategies, which are directed to consumers «who buy ice cream for their children».

VII. Potentialities in the segment of buyers, who chooses ice cream, which is most convenient.

VIII. The segment of buyers, who chooses ice cream because of single taste characteristics, which they like.

Part 5. The most popular Russian ice cream brands from the point of view of consumers

Alyonka

Venecia (Venice)

Lakomka (Gourmand)

Borodino

Rosochka (Rosette)

48 kopeyek (48 cents)

Extrem and Maxibon

Volshebny Fonar (Magic Lantern) and Yolochka (Firtree)

Serebryany Dozhd (Silver Rain)

Prostokvashino

Slitki (Bars of Gold)

Oasis

La Femme

Krutyshka (Cool Thing)

Russky Kholod (Russian Cold)

Bodraya Korova (Cheerful Cow)

Magnat (Magnate)

Luxus

Pyanaya Vishnya (Drunk Cherry)

Supplement 1. Knowledge, which consumers possess about major Russian marks and consumption of major Russian marks of ice cream in Moscow

Supplement 2. Knowledge, which consumers possess about major Russian marks and consumption of major Russian marks of ice cream in the European part of Russia



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