Marketing Plan for juice "Seila"
Marketing Plan for juice "Seila"
1. Marketing Plan
of the Company
Wimm-Bill-Dann is the is the largest producer in
dairy products and one of the leader children’s food in Russia. WBD has more
than 35 production facilities in Russia, Ukraine and Central Asia. The Company
distribution network covers 100% of the Russian territory and also includes the
CIS. Serving needs more than 280 mln. consumers.
More than 17,000 people work at WBD’s production facilities and
Wimm-Bill-Dann is the one of the first Russian company who start
to produce packaged juice products. Before WBD, no one in Russia produce
packaged juice. Imported juice products in modern packaging were virtually
The most recognized brands include: Domik v Derevne (Little House
in the Village), Chudo (Wonder), Vesely Molochnik (Happy Milkman), Imunele and
Lamber. We also have Russia’s best-known juice brand, J7. Another less popular
brands are Lyubimy Sad (Favorite Garden), Chudo-Yagoda (Wonder-Berry), and
Essentuki. The most recognized baby-food brand in Russia is the trademark Agusha.
The Company's revenue has grown from $ 1,189.3
million for 2004 to $ 2,181 million for 2009 (IFRS). Revenues for 2009
decreased by 22% compared to 2008.
The mission of the company is to help the entire family live
healthier lives by enjoying the nutritious and delicious food and beverage
products every day throughout their lives.
Highlights for the first quarter 2010.
Group revenue increased 19.1% year-on-year to US$615.3 million
driven by solid volume growth across all segments and helped by a stronger
Group gross profit increased 2.3% year-on-year to US$172.0 million
Group gross margin declined to 28.0% from 32.5% compared to prior
year as a result of sharp increases in raw milk costs in the first quarter of
Group net income almost tripled to US$33.7 million from US$12.6
million a year ago
Net income as a percentage of sales increased to 5.5% in the first
quarter of 2010 from 2.4% in the same period last year.
Products and Services
The principal dairy products include:
Traditional products, such
as sterilized milk, cream and butter, as well as traditional sour-milk products
such as kefir, cottage cheese, soft cottage cheese and sour cream.
Yogurts and dairy desserts,
such as drinking yogurt, mousse, fruit-flavored milk and kefir, puddings and
flavored cottage cheese.
Cheese products, including
hard and processed cheese.
The beverage products include:
juice and nectars produced
from juice concentrate,
enriched juice-based drinks,
The baby food products include:
Liquid dairy products for
infants under the age of three;
Juices for infants under the
age of three;
Meat, fish, chicken, fruit
and dairy purees for infants under the age of three;
Products for pregnant women
and nursing mothers.
A SWOT analysis is a tool, used in management and strategy
formulation. It can help to identify the Strengths, Weaknesses, Opportunities
and Threats for our company.
This is a summary of the business’s most important strengths,
weaknesses, opportunities and threats.
Good management skills (will run business)
Deep knowledge and understanding of both Russian
market and foreign benchmarks.
Effective organizational structure – efficient and
fast decision making.
Excellent quality product (adds to reputation)
The struggle to build brand equity
More offerings in economy segment
More price segmentation
Expanding market share
High price (Price is the major threat. If the price
goes certain beyond the exact price at the market it will affects the
consumption of the juice. Because when the price goes higher customers go for
Consumers become more prudent
Increasing supplier prices (resulting in reduced profitability)
Effective cost management is crucial to survival
Tougher monetary environment, many companies forced to cut
advertising, headcount, salaries
More stringent financial and borrowing environment
Competitors could harm by getting aggressive in their promotional
Government is becoming
really conscious about the healthy nation and healthy food
Economic factors are the
main factors in any industry who affect to the industry in many ways
Inflation impacts highly
WBD sponsors various
socially significant projects, donates funds to orphanages, hostels,
churches and cultural establishments.
Central government is going
to be seriously concerns about environmental issues
Through modern equipment WBD
increases efficiency of its business and can has up-to-date data about their
1.5 Market Analysis
According to the Russian Union of Manufacturers of Juice by the
end 2008 manufacture has concentrated in hands of four companies of giants. there is a unique opportunity
at the Russian market of juices. There are a lot of different players at the
market, but there is no the strongly
pronounced leader. The main players control 80% of the market
«Lebedyanskii» (market share
«Multun» (market share 22%),
«Nidan» (market share 17%)
«WBD» (market share 16%).
Appendix 1 shows us the structure of the market of juices in
According to the report «RosBusinessKonsulting» (Russian market of
juices. RBK. Market research, 2008) the premium segment of the market is chosen
by more prosperous part of consumers. In connection with growing incomes of the
population the class share premium, about 2006–2008 has grown from 0,4% to 2,7%.
Drinks of an average price segment are in demand at working modern
young people. The share of this segment practically has not changed in
comparison with 2007 (12%). Now there is a rapid development of the bottom
average and bottom price segments of the juice market. According to experts of
the company in 2009 together these segments occupied more than 50% of the
1.6 Market Growth
According to the researchers from «RosBusinessKonsulting» (Russian
market of juices. RBK. Market research, 2008) growth rate are going to be about
8% during 2009–2012.
As predicted production
volume of the market of juice by the
year 2012 will be 3,5 bln. liters a year. (Appendix 2)
2. Marketing Strategy
WBD will launch the highest quality of fruit juice «Seila». The
strategy is to position «Seila» as a natural and healthy juice; the strategy
will seek to create customer awareness regarding product.
WBD’s mission is as follows:
Quality: Our fruit juices
are the highest quality, most nutritious food products…because we will accept
Innovative: Our products
have always been in the forefront of the health and nutrition wave. Innovative
products, state of the art manufacturing, quality assurance and industry
expertise are the bases for our past and future successes.
Integrity: Our customers
depend on the quality of our juice products. Our commitment to the highest
standard is the foundation of our customer's trust in WBD. Delivering freshly
made juice to consumers depends on extensive cooperation and mutual reliance
between supplier and retailer. We stand behind our product, our service and our
Reputation: Our juices have
a reputation on offering the most delicious, nutritious, 100% natural with no
artificial flavors, colors and preservatives.
Market Share Objectives:
To gain 40% of the market
for soft drink industry by August 2011.
To achieve a 10% return on
capital employed by January 2010.
To increase awareness of the
product on the market.
Objectives for Survival:
To survive the current
market war between competitors.
2.3 Key success
Key to success for «WBD» will include:
Providing the highest
State of the art production
and packaging technology is a must in this industry
A strong distribution
demographics of customers
Young professional, ages 25 – 45;
Average income of $40,000+ a
Involved in athletic activity;
Shop in upscale
health/natural food stores.
Products sold as fruit juices may be sweetened if the label states
the presence of the added sugar or other wholesome, nutritive sweetening agent
(saccharin is not a nutritive sweetening agent), but they should not contain
Fruit juices should be manufactured only from clean, sound fruit
in clean equipment. Proper preparation involves thorough washing, sorting to
remove wormy or spoiled fruit, and trimming. Flies should not come in contact
with the fruit or equipment.
WBD will offer a broad range of juices to suit the customer, down
to the smallest detail.
The company will offer a range of innovative juices, including
100% pure carrot juice,
Carrot and celery juice
Beet and apple juice blend
A lovely combo of beet,
carrot, pear and ginger
Tomato, beet and ginger
Kiwi, apple, pear and some
An invigorating mix of
apple, pear and orange
§ Carrot and orange
WBD will use organic ingredients so that consumers will get even
more goodness from the drinks. For a reasonably healthy person there is
therefore no need for vitamin pills nor dietary supplements: a raw juice from
WBD contains the richest natural source of minerals, vitamins, enzymes and
other vital trace elements that will guarantee plenty of energy and vitality to
help your body neutralise toxins, boost its immune system and generally help
you go through your busy day.
All drinks are freshly juiced to order and to enjoy them at their
best we will recommend to consume them within 8 hours after open the bottle.
Remember also that by consuming organic produce, you help preserve our planet's
natural balance and protect its biodiversity.
Different price in different seasons
Summer is a good season for fresh juices in Russia. The average
temperature in Moscow during the summer is 24–28C. (The summer of 2010 is
extremely hot it’s about 30–34C). The company can change their product prices
according to the season. So in winter the prices might be slightly less than in
Maintain price level in all segments at 15% higher than
competitors to reinforce the quality image.
Distribute direct to the client where possible.
Selling the products in the different departmental stores by using
own transport. In this case the company will have more profit margin.
Selling the products through whole sellers and agencies to cover
Retail outlets, Hyper Mall,
Restaurants, Cinemas, Parks, Theaters
Sports, Health clubs, Gym
In order to display products more clearly and attractive for the
customers in the big departmental stores – the company should get central
shelves – in eye-catching positions. Normally we should keep our products
freezers near the entrance of the stores.
WBD will promote products in several ways.
WBD will do sponsorships with different exhibitions,
presentations, shows and events.
Festivals and shows: «Seila» commissions and facilitates cutting edge artists, musicians,
designers, film-makers, etc to curate and create events and happenings. During
any event a mix of multimedia: music, video, advanced technologies in
entertainment and show, should be present. «Seila» Entertainment
element by no means should be limited to laser shows and trendy DJs. (the
sample of advertisement see Appendix 3).
with content creation by consumers:
Like in Web 2.0. and 3.0, «Seila» enables consumers to input into entertainment and show by
sharing/creating content. For example, screens with live puzzle of pictures
made from consumers’ content (images, videos, photographs), or music and light
shows made of consumers’ content (voices, music, ringtones, etc); interactive
3D games and simulations.
Purposeful technologies for
entertaining and educating: «Seila» stations
with content transmission, powered by QR codes, Bluetooth, etc. Content can be
various, e.g. music, useful instant information, videos, pictures and photos.
Creating awareness among consumers: the main objective for this
phase is to create awareness about the product among consumers who will turn
into potential customers. The word-of-mouth effect is the goal here – it will
give a kick to boost initial sales.
World Wide Web
The web site will be tool to get closer our customers and
understand them better and will serve an utility value.
Radio & Television Advertising:
Billboards and holdings
Advertise monthly in
magazines that are specifically targeted to production managers in the
automotive, marine and heavy industrial segments.
Advertise monthly in
magazines that are aimed at production managers in the general industry.
Advertise quarterly in
magazines that are aimed at purchasing officers.
PR release to be initiated
each month to various trade journals and magazines.
ü Contact monthly all past customers that have not re-ordered to ask
why not and see whether we can win back their business.
ü Follow up all new customers two weeks after they purchase to
ensure they are satisfied with the product.
ü Send quarterly newsletter to existing customers to keep them
informed of our other products.
ü Try and up-sell all enquiries for our standard range to our
The purpose of WBD' marketing plan is to serve as a guide for the
company. The following areas will be monitored to gauge performance:
Sales: quarterly and annual.
Production Costs: quarterly
Market share analysis.
Competitor profile – Keep updated competitor profile.
Marketing information system – Document on every enquiry «How did
you hear about us?»
Produce monthly sales reports by product, by market segment, by
territory and sales representative.
4. Strategy and Implementation Summary
Large soft drinks companies advertise direct to consumers, sponsor
sporting events, concerts, radio programs, etc. Competing with such large
campaigns is obviously unrealistic for a small soft drinks producer. A branded
product will benefit from publicity rather than advertising. This is easier to
achieve if the product is unusual.
The strategy of «WBD» is to focus on our niche market which is
health/natural food stores that serve the young active professional.
«WBD» will introduce its products at 20% off regular price during
the first month. In addition, «WBD» will co-sponsor local athletic charitable
events to raise the visibility of the brand name.
The sales strategy is to build customer loyalty in the new
markets. «WBD» will increase its sales force to focus on the new markets.
5. Individual Critical Reflection on Learning Outcomes
• The specific sources of value offered by my chosen company
Evaluation the extent to which my advertisement has contributed to the value offered
by the company to its customers.
Wimm-Bill-Dann has some specific sources of value for its
customers. The first one is quality. Its fruit juices are the highest quality,
most nutritious food products…because it will accept nothing less. The second one
is innovations. Its products have always been in the forefront of the health
and nutrition wave. Innovative products, state of the art manufacturing,
quality assurance and industry expertise are the bases for Wimm-Bill-Dann past
and future successes. The third one is integrity. Its customers depend on the
quality of its juice products. Its commitment to the highest standard is the
foundation of its customer's trust in WBD. Delivering freshly made juice to
consumers depends on extensive cooperation and mutual reliance between supplier
and retailer. Wimm-Bill-Dann stands behind its product, its service and its
• The reflection of my achievement of up to three of the module
I think the most important learning outcome I gained from
the making marketing plan is putting together its different parts. I went
through all the stages of composing a plan for Wimm-Bill-Dann, from market
analysis to revenue/cost spreadsheet calculations. This experience is of the
practical use for me. With this knowledge it will be easier for me to start my
own business and to feel more comfortable in developing other marketing plans.
Especially useful was making market analysis, which involves a lot of efforts
and which helps to understand the process of building the business step by
The next important learning outcome I gained is absolute necessity
to find a way of effective communication with customers. I am sure that the
role of communication in marketing strategy is absolutely necessary. It
provides transferring information, ideas, and plans among multiple customers.
It is a vascular system of any marketing strategy. Communication process is
inevitable for marketing process and defines how a product or services would
exist. All possible marketing functions and roles such as product placement,
promotion could not be properly performed without effective marketing
Another good learning outcome worth mentioning I’ve learned from
the process of making marketing plan is identifying which marketing ideas have
real commercial potential.
There are three very good tools that can help to make a successful
marketing plan. The first one is to create exceptional utility – to identify
where and how the new product or service will change the lives of its
customers. The second one is setting a marketing strategic price – it must not
only attract customers in large numbers but also help to retain them. And the
third tool is building a profitable business model – a good business model is
itself a powerful defense against imitation.
• My expectations at the start of the module
At the start of the module I expected that there are three options
to fight the rivals: attack, coexist, or become low-cost players. None of these
options is easy, but the right marketing plan can help learn which strategy is
most likely to work. It is recommended not to launch the price war with your
competitors. Instead companies should increase the differentiation of their
products by using a combination of tactics, intensify differentiation by
offering more benefits to consumers.
• The experience I bring
to the module in the context of the learning outcomes
In the context of the learning outcomes I brought to the module a
lot of experiences. First of all, breakthrough pricing strategy can destroy
competitors and shake up industries. By offering lower prices and better
services than its rivals Wimm-Bill-Dann simply took their customers away. The
invention and deployment of new ways of doing work enabled Wimm-Bill-Dann to build
Wimm-Bill-Dann faced a number of operational challenges from the
first days of its creation, but it overcame each of them one by one. By using
the models of the most successful Internet retailers of that time, they
identified characteristics that are mostly appealing to customers: value,
convenience and selection. These three characteristics are the main pillars
that create a stable base for the company.
The initial pricing model that Wimm-Bill-Dann deployed was similar
to that offered by traditional drinks producers – charging for a movie,
shipping costs and extended rental fees. But facing a frustration from their
early customers regarding the prices Wimm-Bill-Dann shifted to its popular
organic drinks, which became Wimm-Bill-Dann’s key insight value.
Soon after that Wimm-Bill-Dann adjusted its pricing system it
helped to significantly simplify the program and made it easier to explain the
program. This compelling market proposition added a new group of fans for whom
drinks were a regular part of their daily life.
In order to better balance customer demand, Wimm-Bill-Dann
developed a proprietary recommendation system that increased the utilization of
Wimm-Bill-Dann’s product line by satisfying customers.
• The experience has been used to achieve the learning outcome
I used this experience through the process of creating the
marketing plan and realized that usually the barriers are low and there is no
single competitor that controls significant market share. But at the same time
environment is likely to get tougher and tougher due to raising amount of
possible competitors and increasing set of features and applications with
convenient and also disruptive services that can be used in order to lower the
cost structure and prices accordingly. To be successful a company should
increase the differentiation of their products and services.
• My comment on the views on the process
The process of making marketing plan is very challenging. On my
opinion marketing strategy is must be deemed as the best one. Building
marketing plan from the ground (customers’ needs) is a hard work. The process
helped me to realize that Wimm-Bill-Dann marketing plan should be based on the
right strategy steps and tactics, such as: a) strategy focus (delivering drinks
is a service that needs to be focused on definite market demand backed by
appropriate product, strongly targeted customers and becoming pricing model),
b) adjusted product strategy, c) justified pricing model (to target long-term
customer relationships and d) right target market.
• Assess the prior knowledge and skill the learning outcome
I had prior knowledge and skill the learning outcome how to create
a practical business plan. I spent hours tailoring all the ideas and going
through all the stages of composing a business plan including introduction of
business idea and why it is attractive to start it, overall market appeal, customer
value proposition, profit formula, key resources and processes, and financial
statements. This experience was very practical for me in the future to start my
own business or even to work with other people in developing their business
Another prior knowledge I had was that diversity of ways to
communicate with customers can be a key driver in achieving marketing goals and
targets. Through a series of cases, practical applications, presentations and
interactive dialogues I understood both the importance and the power of
diversity and how to communicate and manage it in real life. I developed an
understanding of diversity as a competitive advantage in marketing environment.
The meaning of innovation in creating potentially interesting and
useful marketing plan is another prior knowledge I had before. Innovative
marketing model or idea may change any industry completely providing
competitive advantages and benefits. Invention and deployment of new ways of
doing work is all about marketing innovation, but managers usually ignore and
uninterested innovations. It is very important to be innovative especially in
our days when new ideas get shorter life period.
• My comments about the changes as a result of this learning
I understood that marketing plan is very important in order to
succeed in any business. Usually the barriers are low and there is no single
competitor that controls significant market share. But at the same time
marketing environment is likely to get tougher and tougher due to raising
amount of possible competitors and increasing set of features and applications
with convenient and also disruptive services that can be used in order to lower
the cost structure and prices accordingly. To be successful a company should
increase the differentiation of their products and services.
• My comment about the process of learning
When I was undergoing the process of learning I felt that there
are some very important marketing bases to succeed. The first one is the
philosophy «Grow and divide». Such philosophy is rather beneficial. It doesn’t
permit the company to become a large mechanistic structure unsuitable for
fostering innovation. The next one is innovation culture and management
• The questions that I have been concerning the learning outcome
and the actions that I am going to take to address them
Concerning the learning outcome I have the next questions. How to increase
the amount of practical examples, games and cases in creating marketing plans.
It provides a class additional to theory practical understanding of how to
implement all those thriving marketing ideas. Inviting special guest which are
able to share their experience is all very helpful for educational process. All
this can be students interested in the class and attract their additional
attention to practical issues.
I would also suggest increasing team working as a very practical
and absolutely necessary experience in any marketing field. It also helps to
build the network with other students. Working in a team helps to gain an
ability to create a dialogue while communicating and improve communication
skills. Possessing this skill helps to identify real problems, develop
solutions, and reach common understandings. It is also important to be able to
put yourself in «other’s shoes» to virtually transfer yourself to the place of
your communicator in order seeing yourself from the other person’s perspective.
Being a part of a team gives students a chance to share their ideas and have
more opportunities in their unpredictable future.
Another concerning for improving the learning outcomes in the MBA
program is creating Marketing Incubator. The purpose of this incubator is to
provide the students an opportunity to put their marketing ideas in practice,
to make them work in reality. It is may be organized as competition with
rewarding a team with the best business plan financial funding to put this idea
in practice. This would definitely encourage students to bring and develop the
most practical and reliable marketing ideas.
producer analysis customer
 #"#_ftnref2" name="_ftn2" title=""> #"#_ftnref3" name="_ftn3" title=""> #"#_ftnref4" name="_ftn4" title=""> Delivers
volume growth and share gains in Q1 2010. WBD
Union of Manufacturers reports. 2009.