National Research University - Higher School of Economics Master Marketing Program Marketing Managemant Course

The Government of the Russian Federation The Federal State Autonomous Institution of Higher Education ""National Research University - Higher School of Economics"

Faculty of Management

Department of Company Marketing

Project report

Wissotzky Tea: Back to Russia

by Voyage team

Advisor: Professor O.K.Oyner, PhD (Economics)

Authors: Tatevik Sarkisyan, 622 Daria Derzhavina, 621 Ekaterina Ivanova, 621 Aleksandra Tsarkova, 622 Daria Gurskaya, 621 Victoria Kazbekova, 622 Djulustan Ivanov, 621 Evgeny Levshin, 621 Kirill Yerokin, 622 Dmitry Mordvinkin, 621 Andrey Kolosov, 622 Anna Oronova, 622 Daria Pushkareva, 622 Yana Vysherevich, 622 Ivan Petrunenko, 622 Natalia Kulgaeva, 622 Darya Zotova, 621 Andrey Minin, 621 Anna Tekunova, 622 Aleksandr Bikbov, 620 Igor Budnikov, 621 Ekaterina Kudinova, 620 Sergey Syutkin, 620

Moscow, 2011

Table of content

Introduction 3

PART I – Brand Story 4

Analysis of external and internal environment 4

Strategic options, priorities and choice 5

STP and brand story 6

PART II - Channels policy and Marketing communications 8

AFH 8

Retail 8

Digital 9

B2B Gifting 9

Marketing communications 10

1st Year 18

2nd Year 22

3rd Year 25

4th Year 28

5th Year 31

Results 34

Conclusion 36

Appendix 1. Positioning map of competitors 39

Appendix 2. Retail calculations 40

Appendix 3. Shocoladnica collaboration calculations 43

Appendix 4. B2B Gifting calculations 44

Appendix 5. Digital calculations (for Ozon.ru and Voyage online store only) 47

Introduction

Wissotzky Tea is a leading producer and exporter of tea in Israel with a market share of approximately 80%. Wissotzky also has a number of branches all over the world. The company produces all types of tea and provides innovations in tea production. Initially Wissotzky tea was founded in 1849 in Moscow, Russia by Klonimus Wolf Wissotzky. Since that time Wissotzky company has built a tradition for producing the highest quality tea and for the time being is considered to be a tea expert. Now is the time to get back to basics in order to share accumulated tea experience with Russian consumers.

The goal of the project was to develop the branding strategy and a five-year marketing program for Wissotzky company to enter the Russian tea market under budget constraints of $1.2M on the 1^st year up to $1.9M on the 5^th year. The main KPIs are achievement of $20M dollars sales on the 5^th year and occupation 17% market share in specialty tea market.

In the framework of the report, first, the process of brand story development, including analysis of external and internal environment and strategic priorities choice, as well as immediate description of the brand story were formulated. Second, combined channels policy, considering such channels as AFH, retail, digital and B2B Gifting, together with marketing communications strategy that encompasses all of these channels were described in detail. Finally, in the third part of the report a five-year marketing plan with detailed calculations is presented. You can find additional calculations and illustrations in Appendixes.