Issues in Brand Rejuvenation Strategies - Expect Advertising
Baltika Brand Rejuvenation · Baltika Brand Rejuvenation Case study prepared for Adam Smith...
Transcript of Baltika Brand Rejuvenation · Baltika Brand Rejuvenation Case study prepared for Adam Smith...
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Baltika Brand Rejuvenation
Case study prepared for Adam Smith Conferences 3rd International Forum forThe Russian Food and Bev erage Industry
Andrey Rukavishnikov, Marketing Director, Balt ika Brew ery
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Size that matters. Baltika is as big as Russia
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2324 25
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BreweriesBreweriesDistribution Distribution centerscenters
• Russia:– Approx imately 1/6 of the land mass– Covers 11 time zones– Stretches across almost half of the
circumference of the globe
• Baltika:– 1st Russian domestic brand– Market leader since 1996– Sells every 4th beer bottle in Russia– 5 breweries & 31 sales rep offices– Owner of 2nd beer brand in Europe
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Facts and figures
25 % market share – Company sales11% Baltika brand share
Brews biggest Russian brand ever –Baltika
Distribution 97%Everywhere in Russia
24 mln HL per y ear, 0.33 bottle per each human being per y ear in the w orld. Biggest and the most profitable brew ery in Europe
Biggest production capacity
32 beer brands / v arieties on saleSuits every consumer taste
Ov er 2000 mln USD capitalisationTop Russian FMCG company
35 countries serv edWorldwide operations
FiguresFacts
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185
296650
1583
2076
0
500
1000
1500
2000
2500
Baltika Sun Interbrew Wimm Bill Dann RBC Kalina
Mln
USD
Top companies in Russian FMCG sector(capitalization, mln USD, Oct 2004)
* Including Ukrainian operations
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91 92 93 94 95 96 97 98 99 00 01 02 03 04 (F)
27,4
(-12%)25,7
(-6%)
23,9
(-7%)
23,9
(0%)
28,1
(+23%)22,9
(-4%)
35,8
(+27%)
44,1
(+23%)
52,4
(+19%)
63,5
(+21%)
68,8
(+8%)
73,3(+6%)
14,0(+32%)10,6
(+62%)6,6(+34%)4,9
(+62%)3,0(+73%)1,7
(+54%)1,1(+27%)
0,9(+46%)
0,6(+85%)
0,3(+22%)
16,0(+14%)
BALTIKA
16,1 (+1%)
19,8 (+23%)
81,0 (+11%)
MARKET
((mhlmhl))Baltika and Russian beer market development
Production leadership
Quality leadership
National distribution leadership
Distribution refinement
Marketing driven company
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Baltika market leadership
6.7%6.9%7.3%
14.8%
25.0%
6.1%6.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Baltika Interbrew Heineken Efes Red East Yarpivo Ochakovo
%
Source: BBH
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Baltika segment leadership
Baltika share in Russia, vo lume
Baltika
BBH, 2004
25%
Baltika share in mid - price segment
Baltika
Baltika share in premium seg me nt
Baltika
33%
22%
Market segments
Beer market
Business - Analytica, Sep 2004
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Baltika brand before 2004 –action required
• Maximum awareness• Huge share• Extremely high distribution• Quality (perceived and actual)• Baltika 3 sub-brand - the biggest beer brand
in the market (2 times bigger than the closest competitor)
• Dated packaging• No restyling / innovations during past years• “ Old – fashioned” perception• Unclear brand equity• Lack of clear positioning for sub-brands
• Positioning clarification• Offer diversification (sub-brand positioning)• Brand rejuvenation
• Competitive communication increase• Competitive portfolio diversification• Competitors gaining share• Proliferation of emotional benefits
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Solution at sub-brand level
To rejuvenate the Baltika brand via:1. Development of an effective positioning strategy2. Diversification of the Target Audiences3. Rolling out striking creative executions4. Relaunch along the lines of innovation and premiality5. Sub-brand specific support6. Further sub-brand reinforcement through umbrella
communication
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• Top Russian beer brand• Over 5% SOM, market leadership• Price benchmark for the market• Major volume driver• Highest distribution level• The only single SKU (0,5L bottle) sub-brand in the
market
Baltika 3 sub-brand background
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Baltika-3 sales development in RussiaJan-Oct 2004 vs 2003
78%
-9%-13%
-27%
-35%
-15%
55%47%
25%
20%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Jan F eb Mar Apr May Jun Jul Aug Sep Oct
mon
thly
gro
wth
2004
vs.
200
3
Change perception –new bottle and label
Added modernity –can launch
Build emotional link - New ATL series
Relaunched products promo • Increase nterest among existing consumers• Stimulate trial among new consumers
“Future” umbrella support communication
Relaunch support campaign
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Baltika 3 can launch
TeaserMoscow, S.Petersburg
RevealFederal outdoor campaign
Back
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Baltika 3 bottle relaunch
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ATL Campaign “Baltika Express” series
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Umbrella communication “From Heritage to the Future”
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Baltika 3 promo campaign: +78 % sales growth
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Next steps
• Premium line upgrade• Packaging consistency
– Restyling of the whole SKU range• New communication strategy
– Separate sub–brands media strategy and advertising support
• Aggressive NPD
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Baltika Brewery sales development in Russia – Jan-Oct 2004 vs 2003
47%
3%
13%
4%4%
10%
38%31%
27%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
mon
thly
gro
wth
200
4 vs
. 200
3
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Thank you!