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NAME
JAY PATEL
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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 nominal value today and the seventh largest by purchasing power parity .
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http://cde.mtuci.ru/distance/cis_countries_map.htm
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http://www.webclamor.com/increased-consumption-but-low-profit-for-fmcg-sector/
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5% 9% 5%
HOT DRINKS
CONFECTIONERY FROZEN FOOD
1%
WASHING PRODUCTS
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Market Research
Major Tea Importers of World (US$ in Millon)
Japan Pakistan US UK Russia 205 214 216 309 309
Tonnes
Tea
Black Tea Green Tea Fruit/herbal Tea Other Tea
Forecast of Tea Volumes by Sub-sectors: 2007-2012 2007 2008 2009 2010 2011
161441
141450 17,420 2237 334
2012
177255
149892 23,638 3317 409
164962
143382 18,814 2415 351
168206
145098 20,131 2611 367
171286
146741 21,338 2825 381
174318
148351 22,512 2060 395
www.aginskyconsulting.com Page
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Market Research
Comparison of the Russian and Indian tea markets
Categories Market size in terms of retail value (in millions of US$) Market size in terms of retail volume (in millions of kg) Growth rate in terms of retail value (2006-07) Growth rate in terms of retail volume (2006-07) Per capita consumption (per kg) India 876.4 226.04 3.50% 2.60% 0.7 Russia 3,266 161.44 12% 2.30% 1.3
$3.90
0.90%
$20.20
9.50%
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Marketing Research
Normal
5cs Analysis
Competitors
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PEST Analysis
Rules & Regulation are strict for Trading the products other than CIS Countries CIS Countries have a good Growth Rate highest tea consumers in the world
Political
Economical
Social
CSR Trends in CIS Companies CRM is not favorable in CSR Companies
Technological
Change in Technology is fast SC is well develop
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4Ps Analysis
Tea- Product Beverage segment Quality conscious Market not Price infected market
Product
Price
Place
Russia Ukrain
Promotion
Scope for Promotions are wide
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SWOT ANALYSIS
Strengths
- Scale - Home Market Good Condition - Technological Pioneers - Focus on Discounts, Quality
Weaknesses
- International presence & Profit - Low Penetration in EU -Lack of international experience
Opportunities
- Growing as super distributers - Product Diversification - New Markets( Russia, US) - E- commerce
Threats
- To large To manage
- Inter nationalization Cost - Union opposition - Not present in large communities
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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 Cost(E) Revenue Marketing Import duty Shipping Charges Middlemen expenses Trade Promotion Profit 0.37
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Auction Export Local sale to retailer Sale to Russian Distributor sale to russian retailer 1.25 1.62 1.25 2.45 0.25 1.25 2.9 0.5 1 0.01 1 0.25 0.95 1.15
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1.25 7
1.25 10.5
3.49
Market Research
Factor Affecting Purchase of Tea
3.5 3 2.5 2 1.5 1 0.5 0 Brand, 3.1125 price, 2.7 quality, 3.075
packaging, 1.087
Advertisement, 0.35
3
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Market Segmentation
First Preference to
Russian Market
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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 1.3kg compared 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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CONCLUSION
Positive macroeconomic including
trends
in
Russia,
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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