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Case Study Darling Chocolate

Decent Essays
22.11.12
Case Study Darling Chocolate (Group 7)

1. The population is very huge in St. Petersburg and therefore there is high sales potential. The population has experienced improvements in living conditions and material well-being; however the standard of living was not that high and incomes are still very low. The annual average growth of income was 23% and average annual inflation rate was only 12%. The average spending on food is about 56% of family budget. Only 2% of monthly expenditures for food are spent on chocolate and candy. Due to several reasons the attitude of Russian consumers is more or less negative towards imported (foreign) products. They perceive that domestic products are at least as good as foreign products. So,
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One reason is that there is a high level of competition. Very important in this case is advertising on Metro-trains and busses as well as at Metro and bus stations. At those points a lot of people spent much time and recognize the ads repetitive. Moreover, our aimed target group is usually using these opportunities of transport and people are often commuters. This kind of “travelling” enlarges repetition effects and reinforces brand awareness at no additional costs.
Additionally, advertising on TV and Radio has to be done as well because those are very important media in Russia to reach the target and therefore to create brand awareness. However, TV is preferred over Radio (although it is more expensive) because you can sell your message easier by pictures.

Adverts in newspapers are also important because 70% of households read a daily newspaper. It is also a good medium to offer coupons and give away. But in order to reach younger people and advertise colorful (brand awareness) magazine has to be used for advertising as well.

4. The most important thing could be to convince the people that a foreign company is able to fit the needs of the customers in Russia. Therefore, it is very important to sell products with high quality at an affordable price. In order to get a higher market in whole Russia the company has to spread to Moscow and other important cities. Additionally, the product portfolio
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