Marketing research of the baby food market. How the baby food business is organized in Russia

The place of Russian manufacturers in the Russian baby food market

About 72% of the baby food market in Russia is accounted for by imported products. The main suppliers are Switzerland, the Netherlands and Germany, as well as Poland and other EU countries. However, the upward trend in the share Russian goods is growing every year.

Basically, Russian producers present juices, purees, cereals, as well as dairy products and complementary foods to the market. A very low share of Russian goods in the category of food for infants - only about 10%. 90% of this market is occupied by products of foreign manufacturers. This is due to the complexity of production, as well as the lack of raw materials for the production of dry and liquid formulas for feeding babies.

Every year Russian manufacturers improve the quality of production of products for dairy cuisine, deserving high marks from consumers, reducing the backlog in the development of technologies in this market sector. Russian companies not only offer their products to domestic consumers, but also export them to neighboring countries - Kazakhstan, Ukraine, Kyrgyzstan.

The largest Russian manufacturers of baby food

The most famous manufacturers in the Russian market are:

OAO Baby Food Istra-Nutritsia;
CJSC "Company" Nuritek ";
OOO Nestle Russia;
Faustovo Baby Food Plant LLC;
Unimilk Company LLC;
JSC "Gardens of Pridonya";
OOO Ivanovo Baby Food Plant;
OOO Wimm-Bill-Dann Foods;
JSC "Progress";
CJSC "Food Plant Linfas";
Dmitrovsky dairy plant;
MolAgroTorg LLC;
GK "Arkom";
LLC Trade House "Good Health", etc.

The most popular product brands represented by Russian suppliers are Frutonyanya, Agusha, Babushkino Lukoshko, Tyoma, etc.

Russian companies at the Prodexpo exhibition

The annual Prodexpo food exhibition provides an opportunity for Russian baby food companies to make themselves known, present their products to customers, present new products, evaluate competitors, exchange experiences, as well as find new customers and conclude supply contracts.

Buyers of baby food - large retail chains, stores, pharmacies, online stores - at the exhibition can see and evaluate the offers of manufacturers and get favorable terms of cooperation. For many Russian companies Participation in such events is a good opportunity to enter the Russian market and get large customer contracts.

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Russia's baby food market is on the rise

Families with children have significantly increased the budget for baby food since the beginning of the year.

Prices for breast milk substitutes rose due to the exchange rate difference from 13% to 30% (90% of infant formulas on the market are imported). However, parents are not going to save on the diet of their children, the demand for a product line of children's goods is growing steadily, and the supply of manufacturers is constantly expanding.

According to Nielsen Russia, in January-February 2015, the volume of the baby food market grew by 8.9% in physical terms compared to the same period in 2014.

At the same time, buyers did not migrate to cheaper price segments of goods. “In February-March, the baby food market is still in the black in terms of sales both in monetary terms and in physical terms, but the growth rate has noticeably slowed down. We do not observe a shift in demand towards cheap brands - Russians do not save on children. Of the many categories studied by Nielsen, baby food buyers are the least willing to switch to cheap brands,” says Yulia Marueva, Partner food group Nielsen Russia.

According to Tatiana Semina, Marketing Director of Nutricia Russia, the behavior of consumers in the baby food market does not change so much during the crisis.

The majority of baby food buyers note that their consumer behavior has not changed due to the crisis (such 61%), 17% switch to more budget options for goods, and only 10% start buying fewer products.

The most keenly "felt" the problem of the exchange rate difference were the parents of infants on mixtures. According to the Association of Children's Goods Industry Enterprises (AIDT), importers have occupied this niche by 90%.

There are practically no domestic producers in Russia, since there are not enough domestic raw materials for these products, and customs duties on imported raw materials is higher than fees on finished products. At the same time, some foreign brands have already announced their departure from Russia. For example, Mead Johnson Nutrition is leaving the Russian market.

In our market, the manufacturer sold infant formulas Enfamil, Nutramigen, Pregestimil.

In general, the proportion of baby food Russian production the market is high. Today, a Russian manufacturer is an enterprise registered in Russia and having production on the territory of our country.

And PepsiCo and Danone now own the largest Russian factories. 70% of baby food products belong to four brands: Danone (dairy and sour-milk products), Nestle (mixtures, cereals), Pepsico (juices), Progress (juices, purees, water).

"Products Russian manufacturers costs one and a half to two times cheaper than that of importers, so now the buyer has more and more confidence in domestic manufacturers that meet the price-quality criteria. Priority Growth domestic production baby food can be achieved in the product segment focused on the education system ( school meals), medical and healthy nutrition, nutrition for children of the first years of life,” says Antonina Tsitsulina, President of AIDT.

Introduction

For effective market activity, conducting targeted competition, the company needs marketing research.

Large foreign company annually conducts 3-4 marketing researches on its own or orders external organizations to conduct 3-4 marketing studies. The principal feature of marketing research, which distinguishes it from the collection and analysis of internal and external current information, is its targeted focus on solving a specific problem or a set of marketing problems. This purposefulness turns the collection and analysis of information into marketing research.

Thus, marketing research should be understood as the process of setting goals, obtaining marketing information, planning and organizing its collection, analysis and reporting on the results.

Market research is not an end in itself, but a source of information for making effective decisions. management decision. This decision can apply to any aspect of foreign trade and marketing activities, so it is irrational to limit the cost of such research due to "cost savings": the losses caused by the wrong decision are usually 10 to 100 times greater.

The use of market research varies widely depending on the company and the type of information required. Although most firms conduct research in one form or another, research departments are found in large rather than small firms.

Conducting market research by domestic firms is currently a rarity. The reasons for this lie, firstly, in the instability and unpredictability of the development of the economic and political situation in the country and, as a result, the focus of most firms on ensuring current profits, and, secondly, in the lack of positive experience in conducting such research and underestimation by domestic entrepreneurs their usefulness.

A marketing study of the baby food market in Krasnoyarsk was carried out.

The purpose of the study: to analyze the current situation in the baby food market in Krasnoyarsk. Research methods: survey, identification of opinions and determination of the actions of the respondents through personal dialogue with the interviewee.

To achieve this goal, the following tasks were set:

1. study theoretical aspects conducting marketing research of the commodity market;

2. product research and pricing policy in the baby food market

Krasnoyarsk;

3. analysis of factors influencing the development of the baby food market in Krasnoyarsk;

4. studying the demand and preferences of consumers, dividing them into homogeneous groups based on the survey;

The object of the study is the Krasnoyarsk baby food market, in particular the types, varieties and names sold in retail stores. trade enterprises G.

Krasnoyarsk. The subject is the current market situation, in the context of the most important aspects.

1. Goals, objectives, directions of marketing research

marketing research baby food

The specificity of modern life requires the subjects of economic relations to conduct a deep analysis of the processes taking place in the market in order to ensure the efficient use of available resources and high-quality satisfaction of needs.

There is a need for a serious study of the markets for manufactured and planned products and a feasibility study for the planned changes in enterprises, which is absolutely impossible without marketing.

In modern theory, about 200 definitions of the concept of "marketing" have been put forward, each of which covers one or another side of it or makes an attempt at a complex characterization.

Marketing is one of the most powerful tools organizations use in their never-ending struggle to survive and thrive.

After the management of the enterprise realizes that in the market conditions it is impossible to manage the enterprise on the basis of the previous principles, the reorientation of the enterprise's activities begins to use the concept of marketing as a business philosophy aimed at identifying the needs of consumers, target markets that this organization can best satisfy by producing appropriate products. .

Having previously resolved a number of organizational issues to create a marketing unit, the company's management begins practical activities in the field of marketing, which includes: analysis, planning, implementation and control over activities to identify and satisfy consumer needs to achieve the goals of the enterprise.

Marketing analysis involves the definition and evaluation of the markets of the enterprise and external environment marketing in order to identify attractive opportunities, detect difficulties and weaknesses in the work of the enterprise.

The information necessary for marketing analysis is collected as a result of marketing research.

Marketing research- this is the collection, processing and analysis of data on the market, competitors, consumers, prices, the internal potential of the enterprise in order to reduce the uncertainty associated with making marketing decisions. Before considering subject area marketing research, it should be noted that in the economic literature there are many definitions of marketing research as an economic category.

Kotler believes that marketing research is "the systematic determination of the range of data required in connection with the marketing situation facing the firm, their collection, analysis and reporting of results."

Evans J. R. and Berman B. give the following definition of this category: “Marketing research is the systematic collection, reflection and analysis of data on problems associated with the marketing of goods and services ...”

In the textbook "Marketing" edited by A.N.

Romanov's definition of marketing research is presented as follows: "Marketing research is an objective collection and analysis of voluntarily obtained information in relation to the consumer market, goods and services."

Based on the above definitions, the main goal of marketing research can be formulated as the creation of an information and analytical base aimed at reducing the level of uncertainty in making managerial marketing decisions.

However, it should be noted that each specific study defines its own object and its own “private” goal.

General scientific and analytical-prognostic methods are the basis of such research, and the sources of information support are the results of desk and field research.

The result of marketing research are specific developments that are used in the selection and implementation of the strategy and tactics of the enterprise's marketing activities.

Development consumer market is accompanied by a rapid expansion of the range of goods offered, which is formed mainly due to foreign-made goods. This is not only an economic, but also a social problem, because

The living conditions of the population largely determine the nature of consumption, including food. The consumer has become more selective when buying goods, at least the majority of buyers already have favorite brands of certain goods and products.

The result of the expansion of consumer experience has been the tightening of competition between companies and reliance on marketing tools, including marketing research.

These changes fully apply to the baby food market (which is the subject of this course work).

The methodology for studying the state and determining possible changes in the baby food market should allow not only to state the state of affairs, but also to determine the criteria for its attractiveness and the possibility of its use, taking into account various existing restrictions.

There are many concepts of "market research".

Below I want to give the three most reliable, in my opinion, concepts.

1. Marketing research is the collection, processing and analysis of data on the market, competitors, consumers, prices, internal potential of the enterprise in order to reduce the uncertainty associated with the adoption of marketing decisions.

To understand the company's customers, its competitors, etc., no marketer can do without marketing research.

Marketing research is carried out in large companies as well as in small firms.

Managers who resort to marketing research should be familiar enough with their specifics in order to be able to obtain the necessary information at an affordable price.

Because they may allow unnecessary information to be collected, or necessary information to be collected at high cost, or they may misinterpret the results.

Therefore, it is very important that managers know the technology of conducting marketing research well enough, which consists of five main stages:

1) identification of problems and formulation of research objectives.

2) selection of sources of information.

3) collection of information.

4) analysis of the collected information.

A merchandising analysis of the range of baby food sold through the pharmacy network in Pyatigorsk was carried out. The preferred demand for milk formulas was studied and the most popular brands of baby food were identified, consumer preferences that influence the formation of the assortment of pharmacies were also studied: component composition (in particular, the absence of preservatives and artificial additives), hypoallergenicity, enrichment of the product with vitamins, minerals and live cultures, manufacturer, price and taste preferences of the child. It was revealed that most consumers prefer to purchase baby food from a domestic manufacturer, of which the largest share falls on the sale of milk formulas. An analysis of the completeness and depth of the assortment showed that there are pharmacies in which some assortment groups (of various shapes and packaging) are absolutely absent. The analysis of the renewal index is quite high and ranges from 60% to 80%, which indicates a constant replacement with new types of baby food.

baby food products.

range

commodity analysis

1. Prokopenko I. P. Ensuring the safety of consumption of baby food // Pharmacy and public health: scientific materials. practical conf. - Ekaterinburg: UGMA, 2011. - P.341-343.

2. Prokopenko I. P., Olifer L. D. Analysis of factors affecting pharmacy assortment milk formulas for children under one year // Universitetskaya nauka: vzglyad v budushchee: materialy nauch. conf. (Kursk; February 7, 2013). - Kursk: GBOU VPO KSMU, 2013. - P.116-118.

3. Prokopenko I. P., Olifer L. D. Study of the range of baby food pharmacy organizations// Development, research and marketing of new pharmaceutical products: Sat. scientific tr. - Pyatigorsk: Pyatigorsk GFA, 2012. - Issue 67. - P.504-505.

4. Tributskaya E. V. Different things are needed: diapers, diapers, baby cosmetics // Pharmacy business. - 2008. - No. 10. - P. 44-48.

5. Shestakov G. N., Prokopenko I. P., Olifer L. D. Marketing research of spectacle optics // Medical Bulletin. - 2011. - V.6, No. 4. - P.34-37.

6. Shirokova I. N. Children's assortment - a specialization of the pharmaceutical business // Russian pharmacies. - 2005. - No. 5. - S. 32-35.

Introduction. In recent years, baby food has taken an increasing place in the assortment of pharmacies. Customers are offered a wide range of baby care products - for feeding and swaddling, hygiene procedures, ensuring comfortable sleep, as well as a wide variety of food products for children. Pharmacies are becoming one of the most common places to purchase baby food, which is primarily due to the high level of trust they inspire among customers. Therefore, these studies can be used in their work by the heads of pharmacies that set the task of expanding the range and attracting customers.

According to the results of the literature review, it was found that this particular segment of the children's goods market is the most promising, since the country is experiencing an increase in the birth rate, an increase in incomes of the population, and the desire of parents to give the best to their child remains unchanged. Experts also note that in the coming years, the high-price segment of goods with additional characteristics and conveniences for consumption will actively develop. Today, there are several dozen companies in the world that produce products for feeding, care and hygiene items, and children's cosmetics. In Russian pharmacies you can buy products from Avent (England), Canpol (Poland), Johnson & Johnson (USA), Bubchen (Germany), Mustela (France), Nuby (USA), Hipp (Austria), Nutricia (Netherlands), Nestle (Switzerland). ), Humana(Germany) .

In the production of goods for newborns, companies use environmentally friendly, hypoallergenic materials, use their own patented developments. Goods for newborns and children of 1 year of life cannot be named new category for Russian pharmacies, however, in recent years, the children's assortment in them has increased significantly. Today, pharmacy chains offer, in addition to food, other related products for children - from pacifiers to toys. This moment must be taken into account when forming the assortment and attracting customers to the pharmacy.

The aim of the study was a commodity analysis of baby food sold through the pharmacy chain in Pyatigorsk. The following methods were used for the study: content analysis, survey, questioning, identification of preferences when choosing baby food.

The objectives of the study included:

1) analysis of the factors influencing the consumer's choice of baby food;

2) study of the commodity and price policy of baby food;

3) analysis of the range of baby food products in the studied pharmacies.

The object of the study was baby food products, in particular, types, varieties and names sold in retail pharmacy enterprises in the city of Pyatigorsk. We analyzed 10 pharmacies located in different parts of the city.

In Russia, the age of children who are fed special baby food has greatly increased. Previously, special cereals and canned baby food were included mainly in the diet of children under the age of 1 year. Currently, baby food industrial production is increasingly used in feeding children up to 3 years of age and older.

This trend is driven by a number of factors. First of all, the growing need of the population for a high-quality and healthy product against the backdrop of a deteriorating environmental situation. An important role is also played by the promoted by experts healthy lifestyle life and advertising.

The survey data showed that the consumer, when choosing baby food, increasingly prefers the reputation of a baby food manufacturer. The modern consumer pays attention to the name, position in the market, the marketing policy of the manufacturer. The role of brands is growing. A high understanding is given to the safety and quality of baby food, as well as the taste preferences of the child.

Research results

Consumer research allows you to identify and explore the whole range of factors that guide consumers when choosing goods (gender and age characteristics, social status, income, education). Individual consumers act as objects. The subject of the study is the motivation of consumer behavior in the market and the factors that determine it; the structure of consumption, provision with goods, trends in consumer demand are being studied. In this case, it becomes possible to develop ways to provide a choice of a particular product to consumers.

Of the 150 people we interviewed (pharmacy customers), 93.2% were women and only 6.8% were men.

When segmenting by age of the respondents, 4 groups were identified: up to 25 years old, 25-40 years old, 40-55 years old, over 55 years old. It turned out that the bulk of consumers aged 25 to 40 years was 61.3% and 30.7% of respondents under the age of 25 years. Respondents aged 40 to 55 years - 7.3%, and over 55 years old - 0.7%. This implies that almost all buyers are young parents.

We also segmented the average income per 1 family member. It turned out that 47.3% of the respondents have an income of 5 to 10 thousand rubles. per 1 family member, 50% of respondents have income per 1 family member from 10 to 15 thousand rubles. And only 2% of respondents have an income of up to 5 thousand rubles and 0.7% - more than 15 thousand rubles. This analysis contributes to the formation of a range of baby food depending on family income. We also found that only 2% of respondents buy baby food every day, 65.3% of respondents buy baby food once a week, the rest buy it as needed.

The next stage of our study was to establish the dynamics of requests to the pharmacy over time. The peak of applications for baby food falls on the time from 14.00 to 17.00 when the pharmacy is open from 8.00 to 20.00 (an average for two working weeks).

During the day, different types of food are in unequal demand. The frequency of shopping for various baby foods per hour is as follows:

more than three times: cereals, milk mixtures;
2 - 3 times: vegetable, fruit, curd puree;
1 - 2 times: fruit juices, puree;
1 time: meat puree, compotes, baby water.

In the process of work, the pharmacist maintains a constant dialogue with the pharmacy visitors. So, the most frequently asked questions to the pharmacist were highlighted:

How to use baby food;

What types of baby food are presented by various manufacturers;

Side effects of baby food;

Dependence of quality on the price of the product;

From what age can one or another baby food be used;

How to store baby food after opening at home.

In order to give qualified advice, a pharmacist needs to constantly improve, study the market for new products, take an active part in trainings and additional classes.

The baby food market is characterized by a fairly large variety and a significant number of producing countries. It was revealed that the majority of consumers prefer to buy baby food from a domestic manufacturer - 62.7%, and 37.3% of buyers - from abroad. Conducted food analysis various kinds for children in 10 pharmacies in Pyatigorsk showed that the largest share falls on the sale of milk formulas (36%) and vegetable purees (21%), the lowest indicator is baby water (4%). The research results are shown in Figure 1.

Figure 1. Shares of various types of baby food sold through the pharmacy chain

We also studied consumer preferences as one of the factors influencing the formation of the assortment of pharmacies.

The following factors influence the choice of baby food products (Figure 2):

Figure 2. Analysis of factors influencing the formation of a pharmacy assortment

When choosing baby food, 79% of buyers are guided by the composition (in particular, the absence of preservatives and artificial additives), 82% - by hypoallergenicity, 76% of buyers are concerned about the enrichment of the product with vitamins, minerals and live cultures, 69% of consumers proceed from the taste preferences of the child. The biggest indicator is the quality of the product (93%).

Genetically modified ingredients (GMIs) are of particular concern to consumers. The first side effect of baby food containing GMI is food allergies. Enzymes in genetically modified soy have the ability to suppress enzymes in the digestive tract of a child. As a result, the food is not digested completely. Underdigested proteins become allergenic, increasing the child's risk of such chronic diseases like eczema, acne, irritable bowel syndrome.

According to the results of the study, more than 70% of respondents consider transgenes to be harmful to health (however, less than 45% of respondents do not know what they are). At the same time, only 41% of respondents are aware that some products contain genetically modified additives.

Price research is aimed at determining such a level and price ratio that would make it possible to obtain the greatest profit at the lowest cost.
Baby food is in a wide price range. Analysis of baby food for the study period was carried out according to the following criteria:

baby food costing up to 100 rubles; from 100 to 250 rubles; from 250 to 500 rubles; from 500 to 1000 rubles; from 1000 rub. and higher. The ratio of the value of sales is shown in Figure 3.

Figure 3. The ratio of sales of baby food depending on the cost

During the study period, the largest share was in children's food products costing up to 100 rubles. In second place were baby food costing from 250 to 500 rubles, in third - baby food costing from 100 to 250 rubles. These data can also be used in the formation of the assortment of baby food.

Analysis of the assortment structure. The study of the assortment structure of sales provides information on the state of consumer preferences and the basis for the formation of an assortment policy. For a more detailed analysis of the assortment of baby food in the city of Pyatigorsk, let's consider the completeness, depth and index of assortment renewal. The completeness of the assortment - the number of types and names of goods of homogeneous and heterogeneous groups. The wider the range, the more varied needs can be met. On the other hand, with an ultra-high completeness of the assortment, it is difficult for the consumer to navigate this diversity, which makes it difficult to choose desired product. Additional consultation with a pharmacist is required.

Analysis of the completeness of the range in the studied pharmacies showed that the average coefficient of completeness is 0.8. This indicator indicates that not all pharmacies and not all types of baby food are available (only milk formulas, cereals, juices and purees), other types are not available.

The depth of the assortment is the number of varieties and names of goods in a group of homogeneous products. The greater the depth of the assortment, the higher the likelihood that consumer demand for goods will be fully satisfied.

An analysis of the depth of the assortment showed that there are pharmacies that absolutely lack some varieties (of various shapes and packaging), such as cereals, mixtures and teas. The average assortment depth ratio was 0.7.

We also analyzed the replacement of baby food products with new types for the current year. As the results showed, the renewal index is quite high and ranges from 60 to 80%, which indicates the constant replacement with new types of baby food, which helps to meet fundamentally new needs of the younger generation of buyers.

Conclusion. Currently, there is a so-called individualization of consumers, when each person from the variety of all goods and services that are in retail trading network, chooses only what he needs. Everyone has their own preferences and desires. And only by studying the current or real demand of buyers for goods, as well as their preferences, it is possible to successfully form the assortment of a pharmacy.

The pharmaceutical market in Pyatigorsk has a sufficient range of food products for children, which can satisfy the needs of any customer. The study of consumer motivations made it possible to determine the socio-demographic portrait of the consumer, to identify the main factors influencing the purchase of baby food, taking into account the safety of their use. The review of the baby food market, sold through the Pyatigorsk pharmacy network, indicates the possibility of expanding the range with new types and varieties.

Reviewers:

Gatsan Vladimir Vladimirovich, Doctor of Pharmaceutical Sciences, Professor of the Department of General Economics of the Pyatigorsk Medical and Pharmaceutical Institute - a branch of the Volg State Medical University, Pyatigorsk.

Stepanova Eleonora Fedorovna, Doctor of Pharmaceutical Sciences, Professor of the Department of Drug Technology of the Pyatigorsk Medical and Pharmaceutical Institute - a branch of the Volg State Medical University, Pyatigorsk.

Bibliographic link

Prokopenko I.P., Olifer L.D. COMMODITY ANALYSIS OF THE RANGE OF CHILDREN'S FOOD SOLD THROUGH THE PHARMACY NETWORK // Modern problems of science and education. - 2013. - No. 2.;
URL: http://science-education.ru/ru/article/view?id=8822 (date of access: 20.04.2019). We bring to your attention the journals published by the publishing house "Academy of Natural History"

From July 2016 to June 2017, sales in the baby food market in Russia increased by 1.3% in physical terms, while a year earlier they decreased by 2.7%, according to. At the same time, sales growth rates in monetary terms slowed down: in July 2016-June 2017 - by 5.3%, a year earlier - by 9.7%. The reason for this was a noticeable slowdown in the growth of prices per unit of goods: from 11.5% to 2.3%.

The main contribution to the recovery of the Russian baby food market was made by the category of dairy products for children, which occupies a share of 25.6% in kind and 23.9% in monetary terms - its sales increased by 11.1% and 10.9% in terms, respectively. A year earlier, the category's sales performance was -0.9% and +5.6%. The largest sales category in physical terms was ready-to-drink drinks (water, juices) 54.3%, and in monetary terms the share of the category was 19%. From July 2016 to June 2017, sales of ready-made drinks for children decreased by 2.2% in physical terms and increased by 1.1% in monetary terms.

The largest category in terms of the share of sales in monetary terms is viscous baby food (mashed potatoes, ready meals) with a share of 24.5%, the share of the category in physical terms is 12.3%.

“Baby food is a category whose buyers are especially attentive to the composition, quality and brand. For our children, we want to buy safe and healthy products created according to the latest standards and meeting all requirements. Therefore, new items in this category are quite successful. For example, such a relatively new segment for buyers as biolact: manufacturers claim that this fermented milk product is healthier than kefir or other products. As a result, according to Nielsen, sales of biolact grew by almost 70% in volume terms, while sales of traditional baby kefir are declining. by 11%. Thus, the issue of appropriate positioning and a strategic approach to the development of new products can significantly improve the position of the manufacturer in the market”,- comments Marina Lapenkova, retail audit expert Nielsen Russia.

Private brands are not as widely represented on the baby food market: in the category of drinks for children, their share is 6.2% in physical terms, in the categories of dairy products and viscous food, less than 1% each.

Among channels, supermarkets have the largest share in sales of baby food - 36% in kind and 33% in monetary terms. They are followed by discounters - 25% in physical terms and 20% in monetary terms, hypermarkets (19% and 17% respectively) and specialized children's stores (13% and 25% respectively). The most noticeable growth in sales of baby food is observed in stores for children: + 14.3% in kind and 16.9% in monetary terms. Also, sales are growing in supermarkets: +6.9 and +7.7% respectively. In other channels, there is a decrease in sales of baby food.

«RUSSIAN BABY FOOD MARKET. MARKETING RESEARCH AND MARKET ANALYSIS Moscow, January 2010 CONTENTS I. INTRODUCTION II. CHARACTERISTIC..."

DEMO VERSION

RUSSIAN BABY FOOD MARKET.

MARKETING RESEARCH

AND MARKET ANALYSIS

Moscow, January 2010

I. INTRODUCTION

II. CHARACTERISTICS OF THE RESEARCH

III. ANALYSIS OF THE RUSSIAN BABY FOOD MARKET

1. General characteristics of the Market

1.1. Description of the subject of research

1.2.Indicators of socio-economic development

1.3 Description of the industry

1.4. Section Summary

2. Structure of the baby food market

2.1. Market segmentation by main types of products

2.2. Price segmentation and pricing in the Market Pricing in the Market Price segmentation of the Market Dynamics of consumer prices in the Market

2.3. Summary of the section

3.Main quantitative characteristics of the Market

3.1. Volume and capacity of the Market

3.2.Market Growth Rates

3.3. Summary of the section

4. Competitive Market Analysis

4.1. Competition in the Market

4.2. Description of the profiles of the largest players in the Market Wimm Bill Dann Company

Companies "PROGRESS"

Unimilk company

Nestle Nutricia (Danone)

4.3. Section Summary

5. Sales channels in the Market

5.1. Description of the retail segment

5.2. Stores specializing in the sale of food products

5.3. Outlets selling goods for children

5.4. Pharmacy chains

5.5. Section Summary

6. Analysis of the final consumers of the Market

6.1. Description of the consumer segment

6.2. Market Consumption

6.3. Consumer preferences in the market

6.4. Section Summary

7.1. Main Market Trends

7.2. PEST Market Analysis

7.3. Market risks and barriers

IV. RESEARCH SUMMARY

The development of the researched Market is influenced by many markets. The Russian baby food market is an integral part of the Russian food industry. The food industry plays a huge role in the economy of any country. At present, the Russian food industry includes 25 thousand enterprises, and its share in the volume of Russian production is more than 10%. In January-May 2009, compared to the same period in 2008, the following main markets showed an increase in production: meat market and semi-finished meat products, the market of whole-milk products, the market of cheese and the market of cereals. However, production fell in most markets. The largest decline in production was shown by the market of canned fish and preserves, the market of powdered milk and cream and the market of tea. Thus, the main trends in the food industry were the growth of inflation, as a result, the reduction in the consumption of many categories of food products, the freezing of prices for socially significant products, and the tightening of competition.

The baby food market can be conditionally divided into 2 main segments: basic food (milk formulas, cereals) and so-called complementary foods (vegetables, fruits, canned meat, juices, etc.). The share of complementary foods is over 30%, and the share of basic food is less than 70% (in monetary terms). In recent years, there has been a trend towards an annual reduction in the share of milk formulas and an increase in the complementary foods segment. So, a few years ago, the share of complementary foods was less than 25%.

Among the main segments of the Market by types of products, the following can be distinguished:

Puree Blends Yoghurts, curds and similar dairy products Juices Cereals Milk Kefir Biscuits Tea Water Muesli And other baby foods Chart. Share of baby food types in value terms Source: GfK Rus Baby Panel research data Puree is the largest segment of baby food (in value terms).

They are present with a significant proportion throughout the first three years of a child's life, reaching a maximum in the second year of life. Juices, cereals are also segments that have their own importance for 36 months. Other significant segments are either very important in the first year of life (formula - 41% of all costs for baby food in the first year of life), but lose their importance as the child grows, or, conversely, become more significant by the second and third year of the child's life ( all dairy products) It is customary to distinguish three main price segments on the baby food market: low price segment (products of Wimm-Bill-Dann, Unimilk and other domestic manufacturers), middle price segment (Heinz, Nutricia, Nestle), high price segment segment (Semper, Hipp, Gerber). Before the emergence of crisis phenomena in the economy, this segment accounted for about …% of the Market, but at the moment its share has significantly decreased. Thus, one can note a trend towards an increase in demand for domestic products and a reduction in the share of high price segments.

Average consumer prices for baby food rose in 2008 and 2009. Average prices for 1 kg of powdered milk mixtures for 11 months of 2009 amounted to … rubles.

The average prices for canned vegetables in 2009 amounted to … rubles, for canned fruit and berries – … rubles. The increase in prices for each of the categories of products amounted to more than …%. The growth rate of prices for certain categories of baby food will increase depending on the level of inflation and on the prices of raw materials for the production of a particular baby food product.

– – –

In 2008, the volume of the Russian baby food market in value terms amounted to $... billion, having increased by $... billion compared to the previous year. According to experts' forecasts, in 2009 the Market will grow not so significantly and its volume will be about $. .. billion

In 2008, the volume of the Market in volume terms amounted to … million tons and grew by only … million tons compared to the previous year. According to the forecasts of the same source, the volume of the Market will grow in 2009 to … million tons.

The main factors behind the significant growth of the Market in 2006-2008 were an increase in the birth rate, an increase in the income of Russians, as well as a change in their lifestyle and consumer culture. However, in 2009 the crisis contributed to a reduction in the consumption of baby food.

The geographical features of the Russian market are also observed: the most significant share of retail sales falls on big cities. Even in the Central region, more than a third of the total turnover comes from trade in Moscow.

The capacity of the Russian Baby Food Market is about … bln USD. According to Market Analytics, the Market's capacity in real terms is … million tons.

– – –

Over the past few years, the market as a whole has been demonstrating very high growth rates at a level not lower than …%. At the same time, some leading companies developed with a significant advance of the market – revenue growth rates amounted to about …-…%.

In general, the market for baby food among the group from 0 to 36 months has shown significant growth rates in recent years. For example, in the 1st quarter of 2008 it increased by 42% in physical terms compared to the 1st quarter of 2007. Among the factors of growth are both the growth of the birth rate and the growth target audience, respectively, and directly growth of consumption. In the 4th quarter of 2008 the market continued to show growth in relation to the 4th quarter of the previous year, but stagnated in relation to the 3rd quarter of 2008.

The market is being affected by the current macroeconomic conditions causing a decline in the birth rate, as well as a decrease in purchases by child care facilities due to cuts in government subsidies for healthcare. The slowdown in value growth is facilitated by the transition of consumers from premium brands to cheaper products. According to the Ministry of Health and Social Development, the number of newborns has been declining for the second month in a row. Demographers predict an even greater decline by autumn. The first signs of the crisis appeared in Russia at the end of the summer of 2008. The crisis affected the birth rate exactly 9 months later. In April, according to the ministry, the number of newborns decreased by 5.4% compared to March, from 151 thousand to 142.8 thousand. In May, the decline continued to 135.2 thousand.

Competition in the Market

At the moment, the production of baby food in Russia is at a fairly high level and fully withstands competition from Western enterprises.

Imported products in the Russian Federation are mainly represented by adapted dry mixes, vegetable and fruit purees, and the positions of Russian players are strongest in the segment of baby juices, meat purees, liquid and pasty dairy products - in a number of categories they have long occupied more than 90% of the market. In general, imported products occupy about …-…% of the Market in the Market. At the same time, its share has been declining in recent years due to the active development of local producers.

The market is very attractive due to high profitability. a maximum of ten manufacturers operate on European markets. In Russia there are more than twenty of them, although the volume is much smaller.

According to various estimates, according to the results of 2008, the share of the largest players: WBD, Progress (Lebedyansky), Unimilk, Nestle, Nutricia (Danone), accounts for about …% of the market in monetary terms and about …% in real terms . According to experts' forecasts, the trend towards consolidation will intensify.

Among the most prominent foreign participants in the Russian baby food market, researchers name the companies Nestle (Switzerland), Hipp (Austria), Nutricia (Holland), Kolinska (Slovenia), Heinz (Germany).

According to expert opinions, the baby food segment will remain one of the most dynamic in the food market even in the face of a decrease in effective demand.

Description of the profiles of the largest players in the Market Wimm Bill Dann Company

http://www.wbd.ru/ About the company Wimm-Bill-Dann is the market leader in dairy products and baby food in Russia and one of the leading players in the soft drinks market in Russia and the CIS countries. at the company's processing plants. The history of the company began in 1992, when Wimm-Bill-Dann launched juices in bags.

Activities

Production and sale:

dairy products;

Baby food;

Soft drinks.

Diagram. The structure of income from various activities of Wimm Bill Dann

74,2% 16,8% 9,0%

– – –

Source: research by TOP-EXPERT agency Assortment portfolio and brand portfolio in the baby food segment A wide range of baby food under the Agusha brand

Geography of activities Wimm-Bill-Dann has created a unified production network in the regions of Russia and the CIS countries, becoming a nationwide Russian manufacturer. Now the Wimm-Bill-Dann group of companies includes 37 manufacturing enterprises in Russia, Ukraine and Central Asia.

Performance Indicators WBD ranks first in terms of market share in real terms – …% (in 2008 WBD increased its market share by 4% in monetary terms and by …% in real terms).

In 2008 the company's sales in the baby food segment grew by more than …%, in the dairy products and drinks segment only by …% and …% respectively. Based on the results of the first quarter of 2009, the sales growth amounted to …%.

The company's share in the dairy products market is …%.

18,000 people work at the enterprises and trade branches of the company.

Advantages Large underutilized production capacity, which gives the potential for growth without additional capital investment;

More high quality manufactured products compared to competitors;

High degree of innovation;

Ability to develop new products and professional marketing;

Strong and diversified product brands;

Stable access to sources of raw materials;

Focus on new product development;

Modern production base and technologies;

Availability of opportunities to attract external financing.

Development Plans WBD's strategy is to produce products in the region where they are consumed.

The company's development program involves an increase in the number of regional enterprises.

The range of all major manufacturers is quite wide and includes all possible products: complementary foods, dairy products, juices, purees, water, cereals and much more. Wimm-Bill-Dann sells the entire range of baby food products under the Agusha brand, PROGRESS sells the main range under the FrutoNyanya brand, also some types of the company's products are sold under the Malysham brand, and mineral water - under the brand "Lipetsk Buvet". "Unimilk"

sells baby food under the brand "Tma", Nestle - under the brands NESTLE, NAN, NESTOGEN. Nutricia sells the widest range of products under the eponymous brand, milk formulas under the Nutrilon and Malyutka brands, and cereals under the Malyutka brand.

Description of the retail segment

To date, the main channel for the sale of goods for children are traditional network enterprises. retail. According to market experts, they account for about …-…% of sales of goods for children. The remaining volumes are distributed through other channels.

Diagram. Where to buy baby food by frequency and cost per purchase

Source: GfK Baby Panel study data

It should be noted that specialized children's stores show the highest growth rates, and if this trend continues, this channel may soon become a leader. The success of the channel consists of two components - a fairly high frequency of purchases in this channel (6.6 times per quarter, that is, 2 times a month), as well as the highest purchase costs in this channel, that is, the maximum volume of purchases in specialized children's stores. Other channels for the sale of baby food include dairy kitchens, kiosks at children's clinics, and others.

Outlets selling goods for children

The level of competition in the children's goods market has not yet reached its peak, but at the moment it is significant. Competition is present in every segment of children's goods, but it is more felt in the work of multidisciplinary multi-product stores. In the Russian regions, the level of competition is much lower than in Moscow and St. Petersburg. According to experts' forecasts, saturation of the children's goods market in Moscow may occur within the next 3-5 years. Market saturation in the regions of Russia in the next 5 years is not predicted by experts.

Trends in work, planning further activities for specialized stores are characterized by a desire to further narrow their specialization, or to reach a new level of work that does not imply further development of a network of retail stores.

In the segment of large wide-range chain stores, there is an opposite trend of further development of the chain, both by attracting new consumers and by expanding the product line provided by stores. going on significant development regional policy of companies - the main players in the market.

The network segment, in turn, is also quite fragmented - today in Russia there are about ... chains of children's goods stores. However, there are a number of leading companies. Thus, Detsky Mir is the leader in the children's goods retail chain segment, which in 2008 occupied about …% of the children's goods market.

According to the market research conducted by its players, in Moscow network retail already occupies …%, the rest is accounted for by unorganized retail and open-air markets. In million-plus cities, the share of network retail is …%. In cities with a population of 100-200 thousand people - only ...%.

Description of the consumer segment

The consumers of the Market's products are children aged 0 to 3 years. According to the 2002 census, the number of children aged 0 to 4 was about 6.4 million.

human. In 2007, this figure was 7.2 million people. Thus, an important factor influencing the development of the Market is the growth of the birth rate.

Market Consumption

The Russian baby food market is characterized by an extremely low level of consumption compared to some European countries and the USA. In Russia, this indicator is only ... kg per year per child and is significantly inferior to the indicators of Western European countries, where on average there is at least 22 kg of baby food per child.

Diagram. The level of baby food consumption in some countries of the world, kg per child per year Source: Euromonitor International, 2008, FSGS, 2009 , consumption will grow significantly. In the long term, the Market growth rate will be at least …% per year.

– – –

In the first 3 years, baby food occupies a leading position in the structure of spending on goods for children (excluding durable goods) - 29.2%, as well as clothes and shoes - 27%. The third place in terms of expenses for children from 0 to 3 years is occupied by diapers - 21.8%.

Diagram. Structure of costs for goods for children under 3 years old Source: GfK Rus Baby Panel study data At the same time, in the first year of a child's life, diaper costs account for over 30% of all costs for a child, and 26% for food. This is due to the virtual absence of food costs in the first six months of a child's life while breastfeeding, while the same period is the period of the most active use of diapers. As the child grows, the cost of food increases, while spending on diapers steadily decreases.

Diagram. The frequency of purchases of baby food among buyers with children of different age categories of children, once a quarter Source: GfK Rus Baby Panel research data On average, 120 rubles are spent on one purchase in Russia (the maximum again falls on the second year of life). Of course, in Moscow they spend more on one purchase - 214 rubles and buy more often - 21 times per quarter (7 times per month), which makes the Moscow market very attractive for manufacturers. At the same time, in recent years, there has been an increase in the cost of baby food among Russian consumers.

– – –

Barriers to entry of a new player into the market may be the following factors:

Lack of own funds Against the backdrop of the financial crisis, there is difficulty in attracting borrowed funds, which may lead to the inability to enter the Market or invest a significant amount of resources in the development of the company, expansion of production, and so on.

Narrow assortment There is a high probability that entering the Market with a narrow assortment, a new player may not be able to withstand the competition of large players with a wide assortment.

Low degree of consumer loyalty

Consumer loyalty is made up of the following components:

o Level of knowledge o Quality of distribution o Quality of product A new brand may need significant promotional support to achieve the required level of knowledge. The cost of distribution is constantly rising, and the necessary scale of distribution is achieved over time. At the same time, you can make significant investments in distribution and promotion, but because of a poor-quality product, the buyer will not buy it a second time.

Risks for companies existing in the market may be:

High level of competition, which can adversely affect results financial activities or lead to a decrease in market share or to the exit of the company from the market.

Lack of funds (investment) to maintain its position and increase its market share, it is necessary to spend a lot on promotion and advertising, ensuring the necessary volume of production, as well as access to the regions and markets of other countries.

Rising prices for raw materials, which can lead to an increase in the company's costs.

– – –

Diagram 1. Dynamics of GDP for the period 2002-2008 in nominal prices, billion rubles

Diagram 2. Inflation rate for the period 2003-2008

Diagram 3. Dynamics of the average monthly nominal accrued wages, rub.

Diagram 4. Dynamics of real disposable money income of the population in 2008, % to the corresponding periods of 2007-2008

Diagram 5. Dynamics of the number of unemployed for 2008-2009, million people

Diagram 6. Dynamics of retail trade turnover for the period 2006-2009, billion rubles.

Diagram 7. The share of types of baby food in value terms ., rubles per 1 kg Diagram 10. Market volume in value terms for the period 2003-2008 and forecast for 2009, $ mln.

Diagram 11. Volume of the Market in physical terms for the period 2003-2008. and forecast for 2009, mln. tons

Chart 14. Places of purchases of baby food by frequency and cost per purchase , % of the total population Diagram 18. The structure of the population by gender, % of the population Diagram 19. The structure of the population of Russia by territory Diagram 20. The level of consumption of baby food in some countries of the world, kg per child per year Diagram 21. Structure of costs for goods for children under 3 years Diagram 22. % of buyers of baby food among parents of children of different age categories Diagram 23. Frequency of purchases of baby food among buyers with children of different age categories of children, once a quarter Diagram 24. Costs per purchase of baby food nutrition among buyers with children of different ages categories Table 1. Output of the most important types of food industry products Table 2. Share of types of baby food in value terms Table 3. Comparative characteristics of the largest players (manufacturers) of the Russian baby food market Table 4. Places of purchases of baby food by frequency and cost per purchase Table 5 Comparative characteristics of the largest network retail companies ( outlets specializing in the sale of food products) Table 6. Comparative characteristics of the largest retailers selling children's goods Table 7. TOP10 Russian pharmacy chains by share in the commercial market medicines, I half of 2008

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Introduction

Bibliographic link

«RUSSIAN BABY FOOD MARKET. MARKETING RESEARCH AND MARKET ANALYSIS Moscow, January 2010 CONTENTS I. INTRODUCTION II. CHARACTERISTIC..."

RUSSIAN BABY FOOD MARKET.

MARKETING RESEARCH

AND MARKET ANALYSIS

II. CHARACTERISTICS OF THE RESEARCH

III. ANALYSIS OF THE RUSSIAN BABY FOOD MARKET

IV. RESEARCH SUMMARY