#Results
DAVIDOFF
SHAPE
KAZAKHSTAN
Danil Yavlovsky, Sales and Marketing
Support Manager CA: “All the initiatives
of our Cluster in the financial year 2017
were aimed at achieving the global
goal that Imperial Brands has set for
itself – increasing its market share.
Each of us made a contribution of his
own on a daily basis and is continuing to do so to bring
our common goal within reach and make it achievable.
Extending distribution, enhancing product visibility,
developing new sales support programs – whatever we
do, we do it to be Serious About Sales. In our efforts we
are assisted by a dedicated tool – a Market Repeatable
Model. One of its blocks is Always On Price Strategy.
A sustainable pricing strategy helps markets to position
its brands correctly against competitors’ brands and
thereby increase sales volumes and therefore the
company’s market share.”
DAVIDOFF QS KAZAKHSTAN
0,34%
0,55%
0,34%
Nielsen MS
10.2015
10.2016
9.2017
WE TRIPLED OUR SALES OF DAVIDOFF SHAPE FROM
3 MLN STICKS A MONTH TO 9-10 MLN STICKS A MONTH
AND NEARLY DOUBLED OUR MARKET SHARE AS A RESULT
Kazakhstan is one of the few world markets where
a minimal retail price for a pack of cigarettes is
regulated at state level. In such difficult conditions
we have to pursue a competent pricing strategy
that meets the demands of our consumers and is in
alignment with brand strategy and at the same time
to secure sales growth for our brands.
The financial year 2017 turned out to be very
eventful for the Kazakhstan market where
two minimal retail prices were set and
the price of 70% of tobacco products
stopped at 300 tenge per pack. In the
meantime one of our main competitors
was consistently squeezing the price
ladder and set the price of his premium
brand at 400 tenge per pack. Thus the difference
in the price of the most expensive and the
cheapest product hit the lowest level on
record. Faced with this situation we
had to review our pricing strategy for
Davidoff products, in particular for the
Black & White, and set the price at 310
tenge per pack.
As 35% of the Kazakhstan market is taken
by the QS format, our team focused its efforts on
Davidoff Shape (QS). We took steps to enhance
communication with retailers highlighting the
advantages of selling the product at a new reduced
price. The Kazakhstan team quickly set about
creating a distribution network and the results did
not take long in coming.
Literally in a matter of a few months since the start
of 2017 we tripled our sales of Davidoff Shape from
3 mln sticks a month to 9-10 mln sticks a month
and nearly doubled our market share as a result.
Bakhtir Aliev, Regional Manager, South
Region: "Retail outlets reviewed their
perception of our product. I have to say
that for some of them Davidoff Shape was
a revelation as they had previously hardly
taken any notice of it and are now buying it all
the time as it is in demand."
Vugar Mamedov, Merchendiser, the city of
Almaty: “I have always believed in Davidoff
Shape, I smoke it myself, that is why I
recommend it to everyone. It is currently one
of my favourite products. The results that we
have achieved can be clearly seen from the
fact that in my business area Davidoff Shape
is available everywhere and currently the most
important task that each of us has to deal with is to
maintain the required stocks at the retail outlets so
that the consumer can always find his product.”
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