United Confectioners   Baltics States market strategy         Prepared by Vaidas Bielinis, June 14th 2012
Strategic Vision 2015: Local MonopoliesChallenger! Strong player in all strategic market categories (chocolate bars,  can...
Current Baltic confectionery market situation and Strategic  directions There is at least one strong local producer in ea...
Starting points / Nearest perspective: Local office, situated in Vilnius, where Maxima Group and other KA are placed (I h...
4P strategy (Product, Price, Place, Promotion):   Product:       Market, categories analysis and products selection for ...
One year perspective: the sales (Christmas)time harvest The high sales time in Baltic confectionery market is Christmas a...
Strategic Vision 2015: Local Monopolies Challenger! Strong player in all strategic market categories (chocolate bars,  ca...
Sweets market categories by sales valueTotal Sweets market Lithuania by Top Manufacturers Value Share
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United Confectioners - Vaidas

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United Confectioners - Vaidas

  1. 1. United Confectioners Baltics States market strategy Prepared by Vaidas Bielinis, June 14th 2012
  2. 2. Strategic Vision 2015: Local MonopoliesChallenger! Strong player in all strategic market categories (chocolate bars, candies etc.) with established brand awareness Consumers‘recognised brands, with strong competitive positioning in all main sales channels, at store and shelf level Developed sales and distribution system, with motivated partners and carefully managed key accounts, in each Baltic country
  3. 3. Current Baltic confectionery market situation and Strategic directions There is at least one strong local producer in each Baltic country, owning top market position, including brand recognition (Pergale in Lithuania, Laima in Latvia, Kalev in Estonia) Kraft Foods company is very aggresive in Baltics, especially strong in chocolate bars category in every country (having >40% of the category market share in Lithuania ) In that way Baltic confectionery market is monopolised or duo-polised in a certain way and new launches require a complex of very strong marketing and sales/distribution mix The allocated marketing budget and constant support from the head office are essential, as the competitive advantage development within few years is rather sophisticated for the considered market . Finding market niches and filling them with strong marketing support will be the important elements of successful launches, including the distribution development in key sales channels
  4. 4. Starting points / Nearest perspective: Local office, situated in Vilnius, where Maxima Group and other KA are placed (I have competencies and experience for the optimal office establishment and back-office out-sourcing):  Sales person in each country  trade marketing resource (one person for Baltics)  Out-sourced back-office Distribution partners selection and distribution establishment (contracts, strategies, action and incentive plans), preferably in each Baltic country (I have contacts with the main distribution companies):  Potential distributors search and top list, focus on the strongest distribution business players and those not having strong confectionery brands and/or those, who would like to strenghen food portfolio  Market prioritisation according to its size and specifics: Lithuania, Latvia, Estonia The main sales channels – modern trade and traditional trade, development and partnership with key accounts (I have contacts in Maxima Group, IKI, RIMI Baltics):  Volume drivers – modern trade accounts, Profit drivers – traditional trade accounts  Direct relations with the most important accounts, account plans development  this is a part of 4P strategy, described on the next slide
  5. 5. 4P strategy (Product, Price, Place, Promotion): Product:  Market, categories analysis and products selection for proper market entrance  Special focus on the biggest: value and mainstream segments, also diversification within each segment  Premium segment analysis, as there is a strong local prodution in each Baltic country  Special approach to local strong producers’ positioning in each country Price:  Entrance pricing level importance, always better than the biggest competition  Competitive pricing for each product, in order to achieve relevant price perception  If possible, aggressive pricing for premium segment as well Place:  Distribution plans and strategies for the Distributors, focusing on both modern trade and traditional trade, especially in Russian speaking regions (Riga, Daugavpils, Valmiera, Narva etc.)  Direct key account (KA) management in retail chains (Maxima, IKI, RIMI, SELVER) in order to: 1) get listings in the biggest stores and then gradually expand to smaller formats 2) heavily use IN – OUT listing proposals in order to list more SKUs in each retail chain  Combine distribution programs with trade marketing activities in order to simultaneously build brand awareness  Special approach to each country specifics (Lithuania – the biggest volumes, Latvia/Riga – points of sales concentration and etc.) Promotion:  Constantly use aggressive price promotions for each product line, in order to get listings in KA and consumer trials (the first market entrance stage may cause so called “buying market shares”, but it is objective due to very intensive competition)  Heavy IN – OUT promotions, which are very useful when entering KA  Strong BTL and trade marketing activities, with allocate marketing budget per each category  Account and marketing plans for the biggest retail chains (Maxima etc.)  Special approach to each country specifics
  6. 6. One year perspective: the sales (Christmas)time harvest The high sales time in Baltic confectionery market is Christmas and Easter periods, so the sales and distribution strategic perspective for December’2012 would include:  Operating local Baltic office with sales subordinates in each country  Established distribution framework in all Baltics (contracted Distributors, developed distribution strategies and plans for each Distributor)  Selected product portfolio and confirmed 4P strategy for Baltics, including marketing budget (both for brand building and BTL activities)  Sales channels development: Modern trade entrance (product launches in KA biggest stores, IN- OUT promotions) and traditional trade distribution activities (in line with active trade marketing)  Developing relations with the main retail chains (Maxima, RIMI etc.) and account plans with allocated marketing budgets  Overall strong foundation for acquiring market shares in each chosen product category
  7. 7. Strategic Vision 2015: Local Monopolies Challenger! Strong player in all strategic market categories (chocolate bars, candies etc.) with established brand awareness Possibly – direct sales channel development (merchandisers, branded or franchised points of sales, e-shop or e-ordering platform) Just Lithuanian all confectionery market size was ~95 million EUR in 2011 What market shares could be relevant at that time?.. P.s.: market shares data in the next slide
  8. 8. Sweets market categories by sales valueTotal Sweets market Lithuania by Top Manufacturers Value Share

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