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 .

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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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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

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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%

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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

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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.

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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

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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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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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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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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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Fmcg Pdct in cis

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