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leipjuusto
F5
International Marketing Research and Strategies, Prof. Dr. Julia N. Solovjova, Department of Marketing
private label segment - very small share (mainly in fused cheese) => difficulties in supporting of visible presence. BUT! growth can be expected. natural cheeses segment - greater share. Entry barriers low/high The cheese production in Russia is gradually declining => import The main competitors: Ukraine and Belarus: > 40% of total import. The average import price: Ukrainian cheese (DAF price including VAT):16% < Belarusian cheese - in 1,5 times <
2007 Fat cheeses 90,2 2008 87,3 2008. % 2007. 96,8
State policy (support of new competitors in the branch) import duties for milk&dairy products
Segmentation
Geographically, cheese producers in Russia are mainly located in Central, Ural, Volga and West Siberian regions. These regions produce > 50% of total cheese volume.
Natural cheeses are the most preferential for Russians, they are more healthful. Processed cheese takes only about 1/4 of retail sales in value terms. People with high incomes focus on expensive imported hard cheeses. Cheeses with a spicy and rich taste: popularity of varieties that are made from goats and buffaloes milk is grown. This group of cheeses is growing mainly due to import.
Success
Cheese retail turnover was grown by 17% in value terms, amounting to about 70 billion rubles in 2007-2011. There are the following problems in Russian cheese market: narrowing of raw material base, which was due to the large reduction in livestock and reduction of raw milk production, and the lack of normal standards of quality of milk, which significantly impairs the quality of cheese. Therefore, import cheeses have an advantage from Russian cheeses in terms of quality.
Success
Trends
gradual growth of branded products share in sales and increase of brand lines in number. promotion of foreign and pro-European brands = some Russians are already aware of our cheese product More concerns about health & wellness (e.g. Arla): lower fat, prebiotic, cottage cheese.
Forecasts
Russia will accelerate the transition from simple commodity markets, where price is the major factor for consumers, to brand markets, where the marketability brand is determined by proposed added value.