Hello! Here is the information about market segmentation in Russia. Dear bloggers, you suggestions and critics are welcomed!
Consumption
Consumption
How many
According
to the research, the ice cream is consumed by every second Russian (56%) Ice cream
consumption in Russia is about 2.7-3 kilograms per capita, which is
considerably lower than the American and European figures. In the U.S. and
Western Europe the consumption exceeds 10 kg per capita.
In
case of ice-cream market share of active consumers constitutes 10% of
population; consumers of this group like ice-cream so much that purchase it
quite often – 3-5 times a week or even every day.
Next
consumption frequency group accounts for 14 million people with
consumption rate of around 7 kg annually: they eat ice-cream twice a week.
Third
consumption frequency group is constituted by those eating ice-cream once a
week on the average; the group accounts for over 20 million people with
consumption rate of 3.5 kg annually.
Group
of inactive consumers – people eating ice-cream 1-2 times per month which
corresponds to average 1.25 kg per person annually. This group is over 40% of
consumer base.
It’s
important to point out that around 40 millions of people don’t eat ice cream
because they don’t like sweet, don’t like dairy products, they care about their
weight and try not to eat high-calorie products.
Geographic segmentation: Where?
In
total in Russia there are 143,5 millions of people. 11,5 millions in
Moscow; 4,88 millions in Saint Petersburg.
The
highest proportion of consumers of ice cream falls on St. Petersburg and Moscow
(http://www.foodmarket.spb.ru/current.php?article=1845
(2013))
Demographic segmentation: Who?
Age:
Young
consumers base – kids, adolescents and the youth. Amount of ice cream lovers
decreases as consumers grow older. Almost one third of
active ice-cream consumers are younger than 25 years yet we’d like to highlight
the fact that practically 30% of those consuming ice-cream at least 3 times a
week are older than 45 years.
Income:
26 755 RUB is the average income per
person. In Moscow it is 53. 953 RUB; In St Petersburg 34.104 RUB[1] Consumers
view ice cream as a product consumed for pleasure, and most buyers are willing
to try new tastes. That’s why it is important that the great majority of
consumers think that prices for
ice-cream are reasonable and affordable, and 7% even said the prices are low.
Only 11% of consumers think that prices for ice-cream are high. Important to
mention, 70% of consumers with relatively low income – under Rb 6 thousand
monthly per family member – also find prices affordable. This means that actual
consumers have no price limits in their consciousness. However, half of
consumers said they do not care for product brand and would choose an unknown
brand of ice-cream to save several rubles. This trend is indirectly proved by
very low awareness indices of the largest manufacturers – even of market
leaders and their brands.
Psycho-demographic segmentation:
Why?
According
to the Synovate Comcon, 71% consumers choose
ice cream based on their favorite tastes. for the majority of consumers
ice-cream is rather an everyday than festive product. The fact that 73% of
consumers purchase the review product in small “round the corner” food stores
proves this statement.
Although
there is trend that consumers pay attention to the naturalness of the ice cream
(from 31% in 2008 to 34% in 2011). What is more, the naturalness of the ice
cream is important for 35-64 years old people. For every third person the
important factor to consider is the appropriate price; trust towards the brand
is important for a quarter of the population. During the summer people prefer
to buy ice cream in the parks and on the beaches. Also, majority of the consumers
eat ice cream outside. Also
family packages are quite popular (10-15%)
About tastes
The
most popular ice cream is vanilla – 38%. Every third prefers chocolate ice cream,
creme brulee or ice cream with chocolate chips as well as with nuts filling.
like every fifth. Also quite large number of consumers 35% byes ice cream
without any fillings. People also prefer
to buy chocolate glaze rather than white glaze ice cream. Also it’s important
to take into consideration that regional specificity evident in the taste and
preferences. Thus, in Moscow , Central, Southern and Far Eastern federal
districts are more likely to choose vanilla ice cream , and in St. Petersburg
prefer creme brulee. The most popular flavor in the Volga , Ural and Siberian
districts is chocolate , and the people of the North- West Federal District
prefer ice cream without additives. People prefer to buy Unilever or Nestle.
After these brands people prefer Magnat, 4 kopeek and Ekzo.
So
the main conclusion that can be made about market segmentation is that nowadays
the most profitable consumer’s base – kids, adolescents and the youth. However, for us it is also important to view
older consumer base. Also it is important to take into consideration health-conscious
consumers and growing number of people who prefer to eat “natural” ice cream. What
is more, although so far the majority of consumers eat ice cream on the
streets, the amount of consumers preferring family packages is growing. That’s
also needed to be taken into consideration. Please note, that analyze regarding market targeting will follow later!
Thank you guys for that insight into Russian ice-cream consumer tastes.
ReplyDeleteAs we still not have your targeting info, just a couple of suggestions for you.
As we can see that tastes & quality, price and brand are the most important factors for consumers (placed in order of diminishing importance), it seems like you should really focus on marketing the tastes & quality side of your ice-cream.
The brand is unknown, the price should be high enough I guess?
Don't you think that standard vanila or chocolate flavours should be somehow added here? For me it seems like a nice action to pay attention to your brand of the majority of ice-cream lovers. What about making the dippn dots in vanila-choco-cremebrule version too?