Sunday 4 May 2014

Hello! Here is the information about market segmentation in Russia. Dear bloggers, you suggestions and critics are welcomed!

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!








[1] http://vsezarplati.ru/zarabotok/razmery-zarplat/srednyaya-zarplata-v-rf.html

1 comment:

  1. Thank you guys for that insight into Russian ice-cream consumer tastes.
    As 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?

    ReplyDelete