Saturday, May 24, 2014

7 reasons to enter Russia

Hi, guys! Maybe you are still wondering why we decided to enter Russian market. Well, let's figure it out!

1. B2B: growth of the small-business and medium-size bakeries all  around the country
2. B2C: Huge unsaturated market: low # of consumers
3. Low per capita consumption of the chocolate paste
4. A small  # of direct competitors (Nutella is the challenge) in the market
5. COO advantage: after the cancellation of GOST standards the quality of goods is under question
6. Popular brand enjoying strong growth in Russia
7. Customer perception of the chocolate as an “everyday guilty pleasure”.

What do you think of our analysis? We'll be excited to hear from you!


4 comments:

  1. Guys, reasons are very good, but I have several questions:

    Don't you think that low per capita consumption of the chocolate paste may be a sign of serious barrier for successful development in the market? Maybe Russian do not need more chocolate paste, but they prefer some other products (сгущенка, for example). How would you prove that taste preference for chocolate is strong enough?

    ReplyDelete
  2. Hey, bros! Neskubin's calling. Time is running out, isn't it?

    Two questions for you:
    1. Do you think that bakeries use Nutella, for example, as a chocolate filler for their cakes or whatever_they_bake? I thought they make their own chocolate filler, paste or smth. Can you prove that your product will be of demand in b2b segment somehow?

    2. How can you prove that the market for chocolate cheese is "unsaturated"?

    Good luck, friendz. Let the power of MRKTNG be with you!

    ReplyDelete
  3. Dear team! You have a great product, which has shown an apparent success in the other markets. Now, let's look at the market of chocolate cream cheese in Russia more closely.
    We have the following products:

    1) Widely beloved "Ricotta Unagrande Dolce" and "Mascarpone Ungrande Dolce" by "Umalat"
    http://umalatte.ru/products/product-detail/rikotta-unagrande-dolce-s-shokoladom
    http://umalatte.ru/products/product-detail/maskarpone-ungrande-dolce-s-shokoladom

    2) Chocolate cheese "Violette" by "Karatsc"
    http://www.karatsc.ru/violette

    3) Chocolate cheese "President" by "Lactalis group"
    http://lactalis.com.ua/ru/brand/president/products/tub

    Basically, those are your direct competitors. Probably, the market is moderately saturated => you won't be able to enjoy the first-mover's benefits.

    Good luck for tomorrow :)

    ReplyDelete
  4. Hi all, another direct competitor might be Valio!! I just had a presentation of a Valio representative and among the new planned product there was a "spread cheese chocolate". So it proves, that there is a demand for a new chocolate taste in Russia, but on the other hand you got a strong opponent comming to the market. Be a aware and plan a response. good luck

    ReplyDelete