#Brands| P&S
SUCCESS: PARKER&SIMPSON
The 2017 fiscal year is coming to an end, and we are looking forward to sharing with you the success of the P&S brand that we have achieved together.
We hope that good news will motivate you towards even greater success in the final quarter!
L
aunched by us in 2015, despite the ban on ad-
vertising and open display, the Parker&Simp-
son brand has grown to 1.7% in 2017, and sales
have increased more than seven times. To see
the real measure of our success, it should be noted that
the current P&S market share has exceeded that of the
legendary Marlboro brand that has been on the Russian
market for decades.
There are two primary drivers behind the growth of
P&S: the migration of the Balkan Star ending in
November 2016, which was the largest migration
in the history of the Russian tobacco market, and
the fast-track growth of P&S Compact (QS).
The need for the migration of the Balkan Star – local
brand No. 2 in our portfolio – was clear, as sales had
declined by 35% yearly. We migrated an annual volume
of about 2.7 billion sticks, which enabled us to increase
the percentage of Growth Brands in the Russian portfo-
lio and also build the customer base for P&S KS.
All regional teams operating in the territory of the Bal-
kan Star played an active role in supporting the mi-
gration. However, the highest retention rate of Balkan
Star smokers was recorded in the North Volga region.
Thanks to the entire team for their involvement and effi-
cient work in implementing the local support programs!
Igor Surov, Regional Sales Manager, Volga
North: “I would like to express my deep
sense of gratitude to the Yaroslavl
team. According to Nielsen, it
has achieved a P&S market
share of 4.29%, which is the
second-best result among
all Russian cities. I would also
like to mention the Izhevsk team. In
July of FY2017 it had the best P&S numer-
ic distribution among all Russian cities which was
85.4%. The team also achieved a P&S market share
in the city of 3.83%, which is the third best result in
the country.”
PARKER&SIMPSON BRAND HAS GROWN TO 1.7% IN 2017,
AND SALES HAVE INCREASED MORE THAN SEVEN TIMES
SALES P&S, MIO STICKS
633
FY’ 2016
5 092
FY’ 2017
The second obvious success of the brand was the rapid
development of P&S Compact. The P&S Compact brand
has made it to TOP 10 in the QS segment and has be-
come the primary family sales driver. Another important indicator is distribution. In this area
we are pleased to announce that the team from the Si-
berian Region demonstrated the highest distribution
performance by July 2017!
The best P&S QS sales performer was the Southern
Region's team with its sales doubling the per-
formance of the other regions. We would like to
thank the team for their excellent work! Andrey Dzyuba, Regional Sales Manager,
Siberia: “I would like to express my deep
sense of gratitude to the teams of Bar-
naul (numeric distribution (ND) accord-
ing to Nielsen is 78.3%), Kemerovo (ND –
77.9%), and Omsk (ND – 77.3%) for their
outstanding contribution towards achieving
brilliant results in terms of building a distribution
system for the P&S brand. This is an excellent exam-
ple of team spirit, professionalism and commitment! I
am certain that we can still go further and, in the fu-
ture, we will be able to achieve even better results!”
Vsevolod Minochkin, Regional Sales
Manager, South Russia: “I would like to
thank the Southern Russia team for strong
sales of P&S cigarettes. Without exception,
P&S sales increased considerably in all ar-
eas.”
MARKET SHARE % (MS)
1.4
0.9
Oct 2016
1.7
1.5
P&S
Marlboro
Jul 2017
P&S QS sales would not have accelerate that fast es-
pecially in Volga North and Ural regions, if it wasn't for
the Key Account team. Sales in this channel have
grown 21 times during the fiscal year.
Anna Maslyaeva, National P&S Group
Brand Manager: "The year was a dynam-
ic one with competitors pursuing an ag-
gressive pricing policy, for the first time
bringing to the market low-priced brand extensions
Royals and PM. We had to respond promptly to fol-
low through with our plans: to lower the KS price,
promote QS more, and launch a new SKS price of-
fer. With our sales department getting in on the act,
we managed to raise the P&S market share up to
1.7%. This year regional managers helped the sales
growth by launching local promotion programs. We
were particularly pleasantly surprised by consumers
switch activities that were initiated by the teams of
the South and the North-West. Next year we have
even more ambitious plans: we need to sell 5.3 billion
P&S sticks and increase our market share to 2.2%. I
believe in our team and I am confident that together
we will be able to cope with new challenges."
Natalia Bocharova, Senior P&S Brand
Manager: "One of the key targets for
P&S was to increase the trial pur-
chase rate. To that end, we set in
motion a sale consultants program
as part of the London project. A total
of 539 retail outlets were in operation
in 14 cities. The activation department's in-
put was instrumental in monitoring and training consultants.
We would like to give a special thank you to Olga Tsutskova
for her caring and responsible attitude to the project."
Alexei Larkin, P&S Brand Manager:
"To magnify the effect from the sale
consultants program, the regional
SSE teams were tasked with
selecting the maximum
number of retail outlets.
Normally, we used to cover
five to ten retail outlets per city;
this year we increased the outreach to include up
to 40-50 retail outlets.
The Империалист | | 9