'Case Study Darling Chocolate\r'

'22. 11. 12 Case Study pricy Chocolate (Group 7) 1. The population is really spacious in St. Petersburg and in that locationfore there is racy sales possible. The population has experienced improvements in living conditions and material well-being; just the standard of living was not that tall and incomes ar still actually low. The annual middling growth of income was 23% and average annual inflation rate was totally 12%. The average spending on food is about 56% of family bud sit. that 2% of monthly expenditures for food ar worn-out(a) on coffee bean and domiciliatedy.Due to some(prenominal) reasons the attitude of Russian consumers is more(prenominal)(prenominal) or less negative towards imported ( outside(prenominal)) merchandises. They comprehend that domesticated products ar at to the lowest degree as heartfelt as external products. So, in general they prefer domestic products. Hence, it is not genuinely easy to build brand awareness, because Russ ian consumers are very skeptical and don not imprecate advert blindly. Chocolate is mass habit product. Hence, all plenty are potential buyers. Russian consumers were desiring and increasingly demanding more variety in all kinds.The securities industry so-and-so be divided into two categories, misfortune chocolates which are seen as more opulence products and are often used for gifts; and chocolate bars which are used for in-person (more spontaneous) ingestion. The market experiences seasonal ups and downs; for example Christmas and upstart Year Holiday season and Women’s Day are very grievous ms for selling chocolate. The intensity of consumption is around 4 kilograms per person per year. Consumers clear be divided into heavy, modal(a) and lighter user. There are many companies, unconnected and domestic, are competing on the market.Foreign companies had been very prospered due to low sets and aggressive advertising, still in recent years nearly consumer s prefer domestic brands. The top triad Russian companies in this business are Krupskaya, Azart and Red October. One of the or so historic characteristics incoming the market in St. Petersburg is the price because it for guests it is the main decision criteria for purchasing or not. The second one is the specific chump group due to the fact that diametric groups prefer different tastes, ingredients and quality.Additionally, the competitors are very in-chief(postnominal) to take into consideration. In rewrite to achieve brand awareness and to get acceptance from the Russian customers as a foreign brand the advertising expenditures are very highschool. 2. It seems to be very awkward to succeed as a foreign gild in the Russian market, because customers are quite price sensitive and rivet on domestic brands. Therefore, we pep up entering the market with chocolate bars starting in nine to create high brand awareness due to high(prenominal) sales in volume.With those pro ducts the company has set down costs for end product, experiences economies of scale and can stretch lower selling prices. Additionally, the heavy users which spent the most amount of money on chocolate are rangeed with this strategy. Besides, customers rely on opinions of others word-of-mouth advertising could be a benefit. Finally, an aggressive and huge advertising tug is useful. After having brand awareness, the launch of higher priced (luxury) chocolate could be easier. However, a good quality is essential. . The most appropriate customer is the Heavy User, because those people are buying chocolate continuously and spontaneously. More or less, the younger and mid-aged target group should be the aim, because older people rely on their experience and are very unwavering to domestic products. Advertising depends on the accessible budget for this project. In general we would recommend a very aggressive advertising campaign using nearly any media that is available. One reas on is that there is a high level of competition.Very important in this case is advertising on electron tube-trains and busses as well as at Metro and bus stations. At those points a sell of people spent much time and recognize the ads repetitive. Moreover, our aimed target group is ordinarily using these opportunities of transport and people are often commuters. This kind of â€Å"travelling” enlarges repeat effects and reinforces brand awareness at no additional costs. Additionally, advertising on TV and Radio has to be make as well because those are very important media in Russia to reach the target and therefore to create brand awareness.However, TV is preferred over Radio (although it is more expensive) because you can sell your message easier by pictures. Adverts in newspapers are also important because 70% of households read a mundane newspaper. It is also a good medium to offer coupons and give away. But in order to reach younger people and advertise colorful (bra nd awareness) magazine has to be used for advertising as well. 4. The most important thing could be to entice the people that a foreign company is able to fit the needs of the customers in Russia. Therefore, it is very important to sell products with high quality at an affordable price.In order to get a higher market in whole Russia the company has to revolve to Moscow and other important cities. Additionally, the product portfolio has to be enlarged to reach more people. At first, the introduction of higher priced products (box chocolates) is necessary in St. Petersburg. Depending on the time this introduction could be most successful when there is Christmas Holiday or Mother’s Day when people are quest for special gifts. Probably the company can think about a production plant in Russia, employing domestic people, sound transportation costs etc. acquire a more positive image.\r\n'