Strategy for infant products category growth for danone in Мoscow

1.

STRATEGY FOR INFANT PRODUCTS
CATEGORY GROWTH
FOR DANONE IN MOSCOW
Team Masters
Bobov Petr
Lobkovskaya Daria
Burobin Maxim
Voronova Olga

2.

Summary
Optimizing
channels
Line
expansion
Increasin
g average
cheque
Social
impact
Implementation
Our
team

3.

Summary
Optimizing
channels
Increasin
g average
cheque
Line
expansion
Implementation
Social
impact
Our
team
Focus on high-marginal SKUs sales growth in Moscow Hyper/Supermarkets will enable strong
total sales growth in +38% by the end of 2017
1.
The share of Tyoma’s sales volume in Moscow
Hyper/Supermarkets gets over 50% behind the
average on the market
3.
The problem is high sales of low- margin SKUs and low sales of
high-margin SKUs in Moscow Hyper/Supermarkets
High
High margin
margin
Low
Low share
share
Sales volumes in the channels
Segment units shares in Moscow Hyper/Supermarkets
53%
Moscow Hyper/Supermarkets
27,61%
77,79%
31%
Moscow Superettes
Low
Low margin
margin
High
High share
share
High
High margin
margin
High
High share
share
23%
11,3%
Tyoma’s share
29,73%
10,91%
2.
32%
29%
27,72%
Moscow TT and Specialists
Low
Low margin
margin
High
High share
share
12%
Market share
…while the units share matches the average
level
Sales units in the channels
Moscow Hyper/Supermarkets
Curd
4.
Drink yogurt
16%
Tyoma’s
share
Market
share
13%
Kefir
Milk
Solution − increase high-margin SKUs to the market level
Prioritizing curd and drink yogurts by increasing shelf
representation and improving merchandizing would lead to…
Total units sales
growth
76,75%
77,35%
+69%
Total volume
sales growth
43%
Moscow Superettes
10,78%
10,77%
Moscow TT and Specialists
12,46%
11,88%
Sources: Danone, Team’s analysis
5640MM
RUB
16MM
+21%
Tyoma’s share
Market share
2,6MM
Curd
Drink yogurt
4060MM
RUB
2015
end 2017

4.

Summary
Optimizing
channels
Line
expansion
Increasin
g average
cheque
Social
impact
Implementation
Our
team

5.

Summary
Optimizing
channels
Line
expansion
Increasin
g average
cheque
Social
impact
Implementation
Our
team

6.

Summary
Optimizing
channels
Line
expansion
Increasin
g average
cheque
Implementation
Social
impact
Our
team
Danone’s priority social mission is caring
about children’s health and future - the same
mission share the parents
Mutually beneficial solution
giving seminars and public talks on parenting and nutrition
provides:
Establishing strong connection between Danone and parents
Improving buyers’ loyalty
Meeting the customers’ preferences and needs
Familiarizing parents with Danone and the infant food line
Attracting new customers
The key to success − cooperating with the leading children’s
health care centers, who have deserved the parents’ trust and
appreciation.
+213,44
Clients attracted in a year, TH people
Mother and child
GEMC
+147,84
+80,85
Bud’ Zdorov
+72,44
Medicine
+70,69 MedSwiss
Total: 585,56 TH
Sales increased by the end of 2017, TH RUB
+277477
+192192
+105105
+94174,08
Total: 760840 TH (+67%)
Mother and child
GEMC
Bud’ Zdorov
Medicine
+91891,8 MedSwiss
Sources: RBK Research, Rosstat, Forbes, Companies reports, Team’s analysis

7.

Summary
Social
impact
Financial
analysys
Our team

8.

Summary
Optimizing
channels
Increasin
g average
cheque
Line
expansion
Social
impact
Implementation
Our
team
The Masters Team
Bobov Petr
Burobin Maxim
Lobkovskaya Daria
Voronova Olga
HSE-NES student
HSE-NES student
HSE-NES student
HSE-NES student
Winner of Russian
economics competition
Winner of Russian
economics competition
Winner of Russian
economics competition
Winner of Russian
economics competition
[email protected]
[email protected]
[email protected]
[email protected]
+7-916-137-60-67
+7-916-137-60-67
+7-916-137-60-67
+7-916-137-60-67

9.

Appendix 1. Social impact
Share of Moscow
commercial services
market
Number of clients,
TH/year
Сoefficient of interest
Number of buyers attracted in a
year, TH people
Sales increase by the end of
2017, TH RUB
GEMC
4,00%
616,00
0,40
147,84
192192
Mother and child
3,30%
508,20
0,70
213,44
277477,2
Bud’ Zdorov
1,75%
269,50
0,50
80,85
105105
Medicine
1,96%
301,84
0,40
72,44
94174,08
MedSwiss
1,53%
235,62
0,50
70,69
91891,8
Total:
585,26
760840,08
Data used:
Percent of people,
Percent of people,
Percent of people, buying infant
Russian population 2013, who use commercial who use commercial
food
th
medical service
medical service:
140000
55%
20%
60%
Sources used: RBK Research, Rosstat, Forbes, Companies reports, Team’s analysis