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PART II - Channels policy and Marketing communications




Our proposition for entering the Russian market is a combined channels policy with considerable variations in marketing priorities for channels throughout the first five years.

Presence in Retail is of high importance to the tea brand. It creates brand awareness and generates sales. Still entering Retail in the first year is too risky and unsafe. We consider our goal for the first stage to be introducing the brand to the consumers without mass media advertising campaigns (due to budget limits) but still gaining their trust and attitude. For this we suggest collaboration with Shocoladnica café chain as the first year key priority in marketing efforts.

AFH

The key idea of Shocoladnica collaboration for Voyage by Wissotzky is to start attracting buyers and generating brand awareness and sales before entering Retail. To achieve this we have built a complex marketing programme proposition based on mutual advantages for Wissotzky and Shocoladnica. While Wissotzky gains access to Shocoladnica customers buys, the café chain gains from all the promo activities that are organized by Wissotzky.

Product portfolio for Shocoladnica includes the usual boxes of tea, Wissotzky gift packages in cartons boxes (60 special bags) and special tea bags (with Voyage style and logo, flavor of description and Russian website address).

We suggest to find other HoReCa partners through special exhibitions and HoReCa magazines. As well as using other AFH channels suitable for the product: Offices, Catering services, Language courses. These are stable sources of sales revenues and customer contact.

Retail

We consider retail as one of key channels because we understand that this channel could access to a lot of potential customers, brand awareness from the retail floor and opportunity to have a significant market share in perspective. But costs and risks of this way are significant too. To reduce them we defined the strategy of retail expansion according to following points:

1) Retail cannot be entered earlier then second year. An acceptable level of brand awareness should be created first

2) Our presence in retail should start from the chain with the biggest traffic, oriented on our target audience

3) Expansion in retail should be in step with brand awareness increase in Russia

4) Expansion is dependent on limitation of Marketing budget and our priorities

We decide to build our retail expansion strategy from Moscow and further to develop in other key locations. Our plan of expansion by years is following:

1st year: we come to supermarkets in the key Moscow Malls with real big traffic,

2nd year: we come to all supermarkets “Perekrestok” in Moscow (we defined “Perekrestok” net, because this net is the window of Russian retail according to the expert opinion, this net is really widespread and oriented on our target audience),

3rd year: we come to all hypermarkets “Karusel” in Moscow and Moscow region. So, we develop our presence in key retail net, which is situated in interesting for us locations and which is also oriented on our target audience. Also expand our presence in supermarkets “Perekrestok” in Moscow region.

4th year: we come to Moscow supermarkets “Sedmoy Continent” (supermarket and hypermarket formats), Moscow and St. Petersburg hypermarkets “Metro” and “Auchan”. So, we focus on key regions by working with strong retailers (“Sedmoy Continent” is widespread enough in Moscow, Metro and Auchan are world famous retailers and have very fast sales, products in these hypermarkets a bit cheaper than in other nets). Also we expand our presence in supermarket “Perekrestok” in St. Petersburg, St. Petersburg region, Central region and in hypermarket “Karusel” in St. Petersburg and St. Petersburg region.

5th year: we come to supermarkets in key St. Petersburg Malls. Also we expand our presence in all other ”Perekrestok” supermarkets, “Karusel”, Metro” and “Auchan” hypermarkets in Russia.

Product Options. We want to present in selected supermarkets packaging tea of sub-brands “Voyage by Wissotzky ” and “Classic by Wissotzky”. In terms of “Classic by Wissotzky” we will present 1 taste of tee in box of 25 bags, in terms of “Voyage by Wissotzky” we will offer by 14 tastes of tea in boxes of 25 bags. In boxes of product line tee “Voyage by Wissotzky” we will put inside special leaflets (description of company’s product range, interesting facts about the city, recopies) and one more bag of random taste in every package. Retail price of each tea box will be 65 RUR according on our competitor’s prices (Price of Ahmad tea box from Contemporary collection is 67 RUR now, price of Greenfield tea box is about 59 RUR now in “Karusel” hypermarket).


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