Introducing Kelloggs Pop Tarts To Russia

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Introducing Kellogg's

Pop Tarts to Russia

International MKTG Team


Faith Cook * Rashard Brooks * Lauren Miller * Xavier Thomas
Everyone gets
a POP TART!
Agenda
● Product & Company Background
● Target Country Background
● Political, Legal and Regulatory Climate
● Competitive Environment
● Market Segmentation
● Communications & Branding Strategy
● Channel & Pricing Strategy
● Recommendations
Company & Product Background
● Officially founded 1906 ● Kellogg’s Pop Tarts
● Create nutritious breakfast & snacks ● Sales increased 32 years
● Special K, Eggo, Nutri-Grain Bars ● Innovated special frosting & sprinkles
● Post’s Country Squares (1964) ● Quick, delicious, affordable, iconic
Our “Crazy Good” Campaign
● “Crazy Good” (2004) ● Zany, desirable, funny
● Inspired by children ● Short, yet memorable
Gold Effie Award
● Reconnect & Leverage Desire ● Wildberry Pop Tart Video
(2006)

http://www.ispot.tv/ad/7V13/poptarts-wildberry-poptarts
Target Country Background
Population 143.7 million
● 3 major cities
○ Moscow (11.6 million)
○ St. Petersburg (4.87 million)
○ Novosibirsk (1.48 million)
High context Society
Very Family Oriented
The majority of households
contain the parents, children
and the grandparents.

Age structure: 0-14 years: 16.4%


15-24 years: 10.7%
25-54 years: 45.8%
55-64 years: 13.8%
65 years and over: 13.3%
Political, Legal and Regulatory Climate

Political Risk Trade Organizations US-Russia Relations


➔ B ranking ➔ 3rd trading partner in EU ➔ Rigid, sense of mistrust
➔ Political Risk score: 52 ➔ World Trade Org since ➔ Past: Cold War
➔ Average in region: 74 2012 ➔ Present: Syrian War &
refugee crisis

Corruption Bribery Intellectual Property Laws


➔ Petty, day-to-day ➔ Accepted on a
➔ Updated laws put into
➔ Russian Federal small scale
practice Oct. 1st, 2015
Anti-Corruption Law: 2008 ➔ Made to keep up with
modern world
Competitive Environment
● Pastilla
○ Natalie Nikitina
○ Dates back to the 16th century
● No marketing strategy
○ Traditional and cultural beliefs
● Weaknesses:
○ Lack of investors
○ Inconvenient
○ High-prices
Market Segmentation: Cultural Factors
Collectivist Society High-Context Culture
➔ Egalitarian ➔ Everything matters
➔ Horizontal ➔ Close proximity

High-Level Uncertainty Avoidance


➔ Uncomfortable with change
➔ Clear expectations of behavior

Feminine Culture
Low Power Distance
Market Entry
● Direct Exporting
○ Low Cost
○ Gives more control
○ Better communication
● More risk
● Cost more
Market Segmentation: Target Segments
● Teens and young adults (ages 12-22)
● Strong Social Dependency
○ VKontakte (VK) (ve-KHON-takt-yeh)
● Convenient, desirable, shareable
● Russian humor
○ Wild Cherry “Meet the Band”
Communication & Branding Strategy
● Extension adaption
○ Snacks and baked goods
■ Traditional Russian Cuisine
● Wide array of flavors
● Ease of accessibility & pricing
○ Larger quantity
○ Convenience
● Distribution channels
○ Television: 330 channels
○ Newspapers/magazines: 535,000
copies per week
Channel Strategy
● Distributors
○ Dixy (Дикси): 1,500 stores
○ X5 Group: 2,500 stores
● Vending Machines
● Russian-style Mini Markets
Pricing Strategy
● Penetration Pricing
○ Foothold in highly competitive
market
○ Price sensitive consumers
● Pastila: 200 rubles~ Individual
○ $3 (U.S.)~ 4 pack
● Lower prices/larger quantity
○ 180 rubles
Recommendations
● Create PR initiative: Kellogg's Pop Tarts Crazy

Good Mini Stores

● Russian Flavors:

○ Pastila, Tula, Vatruska, Bird’s Milk Cake

VKontakte (VK) page for Kellogg's Pop Tarts


RUS SIA

… and as a Plan B, there’s always…
Questions?

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