Post on 26-Mar-2015
transcript
Istanbul, October, 2006
Ashot Arutyunyan
“GROSMART” trade chainStrategy Marketing Director
a_arutyunyan@elexcor.ru
GROSSMART 2
I. Company Overview
II. Sales & Marketing
III. Dynamics of food retail market in Russia
IV. “Grossmart” strategy in 2007-2010
Contents
GROSSMART 3
I. Company Overview
GROSSMART 4
Company mission and aims
Company Mission Company Aims Key Success Points
Create a national chain of food superstores offering a wide range of products of day-to-day demands aimed at customers with average income level
Become a market leader in opening and managing superstores technologies
Provide high level of service, meeting leading standards
High standards of processes and technologies
Professional management team
Wide experience in retail business management
GROSSMART 5
2001
Development of supermarkets chain as top priority. 6 SPAR supermarkets opened
Sub franchising contract with Holland company SPAR signedThe first SPAR superstore opened
The number of SPAR superstores to be increased up to 18Acquisition of “Stolitsa Sever” chain. Regional expansion. The first Grossmart superstore in Kazan.
Contract on establishing a joint venture of BILLA Russia and REWE Group
Opening first BILLA supermarket, its assignation to the joint venture and re-branding of 18 supermarkets
8 Grossmart stores in Moscow and regions
Active expansion of the chain in the regional markets. Acquisition of working chains:
- 6 stores in Moscow ( “Prodmak” chain) - 4 stores in Kazan (“Riden” chain) - 4 stores in Kursk (“Apelsin” chain)”
40 shops in Moscow and the regions working under the Grossmart brand
Assignation of 15 shops to BILLA trading network and re-branding
Acquisition of ‘PI’ store chain in Vladimir city and Vladimir region (69 shops)
Target for the end of 2006 – 109 Grossmart stores in Moscow and the regions
2002
2005
2003
2004
2006
Company’s history
GROSSMART 6
The parties intend to invest $500 mln in BILLA Russia and increase turnover up to $3 billion during the next 3-5 years
Strategic alliance with REWE Group
On the 8th of June, 2004, during the Russian-German economic summit in Moscow in the presence of Mr. Putin, President of Russia, and G. Shchreder, Federal Chancellor of Germany, holding company “Marta” and REWE Group signed a contract on establishing joint venture - BILLA superstores chain in Russia
REWE Group is the second trade operator in Germany after Metro group. The company owns more than 11.5 thousand retail stores in 13 countries in Europe, its gross turnover is approximately 40 billion Euros
GROSSMART 7
Geographic presence
CityNumber
of objectsTotal
space, м2Sales
area, м2
Moscow (and Moscow region)
7 11 361 5 426
Vladimir 69 21 077 11 492
Voronezh 1 2 300 1 200
Yekaterinburg 1 6 325 4 000
Kazan (Joshkar Ola)
10 11 723 6 967
Kursk 4 6 141 3 607
Stavropol 1 2 500 1 200
Krasnodar 1 2 122 1 453
Ryazan 1 2 000 1 280
Saint Petersburg 1 1 160 750
Saratov 1 2 338 1 300
Tula 1 680 410
Engels 1 2 156 1 000
Total 99 71 883 40 085
At present “GROSSMART” is presented by approximately 100 stores of different formats in 14 regions of Russia
GROSSMART 8
Grossmart stores’ formats
Hypermarket (format D)Supermarket (formats A. B, C)
Grossmart manages four main sub formats
Format A B C D
Sales area, м2 400-600 750-1000 1200-1500 4000-7000
Assortment SKU 8500 12200 14700 29000-40000
Number of stores
(in 2005)25 8 11 1
Average space, м2
450 870 1 360 6 325
GROSSMART 9
Grossmart supermarkets
Convenient location
Wide assortment
High quality of goods with
particular focus on fresh
products
High level of service
Application of European
operators’ experience
Comfortable atmosphere
GROSSMART 10
II. Sales & Marketing
GROSSMART 11
Marketing Strategy
Format of “Grossmart” supermarkets is aimed at an average consumer
Creating a strong recognizable brand
Opening 90% of new stores by 2010 in the regions approximately
“4 P” Rule:
Product Price Place Promotion
Key consumers belong to
growing Russian middle class
GROSSMART 12
Price strategy
Competition on regularly bought products with such stores as “Sedmoy Continent” and “Perekrestok”
Regular price monitoring
“Best price” and “Product of the day” promotion. Promo price is supported in all the formats
Price strategy:
Competition on regularly bought products
GROSSMART 13
Loyalty Programmes
Lotteries, coupons, promo on discounts on goods of day-to-day demand, publishing information about discounts in monthly advertising booklets
Discounts system
Points collecting programme, congratulation on the birthdays, discount programme for pensioners
Events, presents to the clients, tastings and advertising/promo campaigns
Different programmes for the clients
Special events
GROSSMART 14
III. Dynamics of food retail market in Russia
GROSSMART 15
Retail turnover in Russia (billion US$)
105 120147
194
241
310
365
420
100
150
200
250
300
350
400
450
500
2001 2002 2003 2004 2005 2006F 2007F 2008F
USD bln
Source Goskomstat, evaluation of IRG*Source: according to Eurostat data, average growth in the first quarter of 2005 in 25 EC countries was 1.6%
Following incomes growth tendency, retail market is
rapidly developing
Retail turnover in Russia and foodstuff sales
38,948,6
55,9
68,2
88,7
110,9
25
50
75
100
125
2000 2001 2002 2003 2004 2005
Russian foodstuff market has grown three times more since
2000
Retail sales of foodstuff (billion US$), 2000-2005
GROSSMART 16
“Grossmart” in RBC report, 2005
RBC rating, 2005 GROSSMART
Rating of the most quickly growing companies, according to sales space
1 place
(195%)
Rating of the most quickly growing companies, according to stores number
2 place
(400%)
Leaders in regional presence (number of stores)
6 place
(11 regions)
The market is fragmented. 5 leading players own only 6.1% of the foodstuff market
Consolidation of the market will take place
Keeping such growth dynamics, Grossmart aims to enter top 10 operators group of Russian retail foodstuff market by 2010
GROSSMART 17
Our achievements
2004 – Nomination “Supermarkets”2005 – “Russian retail consolidation leader” 2006 - Nomination “Best of the best”, “Managing company in the retail market” category
“Golden Chains” prize-winner (3 awards)
National award “The Company of the year 2005”, nomination “Trade chain’
Social award ”Russian trade Olymp 2006”
GROSSMART 18
IV. “Grossmart” strategy for 2007-2010
GROSSMART 19
Our aims
To be present in the majority of Russian cities with the population more than 300 thousand people
Enter top ten federal food retailers in Russia
GROSSMART 20
Development strategy
Strategy
Market leader in the Russian supermarkets segment on a national levelBrand recognition in the regions – 83%Transparent and well organized business with an effective management system
Plan
Quick expansion in regional markets Opening of its own new stores Acquisition of existing operators
Stores and consumer groups’ segmentation, sub formats and consumer groups’ determinationEstablishing its own trade markStrengthening consumer’s loyalty to the brand (quality of service, value added services, promo campaigns and discount programs)
GROSSMART 21
Development strategy in the regions in 2006-2008
Cities
Moscow and Moscow region
48 cities with population of 100-300 thousand people in Moscow region
TatarstanKazan, Naberezhniye Chelny, Nizhnekamsk, Almetyevsk, Zelenodolsk, Elabuga,
Chistopol, Cheboksary, Novocheboksarsk, Yoshkar Ola
Saratov Saratov, Engels, Balakovo, Balashov, Volsk, Penza, Kuznetsk, Kamyshyn
Voronezh Voronezh, Borisoglebsk, Rossosh, Piski, Stary Oskol, Lipetsk, Elets, Tambov
Kursk Kursk, Zheleznogorsk, Orel, Gubkin, Belgorod
SouthKrasnodar, Novorossiysk, Armavir, Eysk, Geledzhik, Kropotkin, Tihoretsk, Tuapse, Slavyansk-on-Kuban, Labinsk, Anapa, Belorechensk, Krymsk, Timashevsk, Anapa,
Goryachy Klyuch, Maykop, Stavropol
[Rostov-Volgograd]; [Izhevsk-Perm-Ufa]; [Ekaterinburg]
[Yaroslavl-Ivanovo]; [Novgorod-Pskov]; [South Ural]
2007
2008
2006
GROSSMART 22
Acquisitions programme
Advantages of acquisition:Keeping/increasing profitability with the help of operational synergies at aggressive business growth
Strengthening interaction with suppliers
Optimization of logistic
Optimization of business management structure
Saving on scale
Applying the standards of corporate management and reporting, according to international standards
Choosing companies for acquisition:Reputation of the company
Similar format, geographical coverage
Developed technologies
GROSSMART 23
Objects
GROSSMART 24
Grossmart in the regions: Kazan, Tatarstan Republic
10 supermarkets in Kazan
Supermarkets in Kazan:
Total space – 13 900 sq. m.
Sales space – 7 000 sq.m.
First Grossmart supermarket was open in Kazan
in 2003.
At present there are 10 shops in the city.
GROSSMART 25
Grossmart in regions:Kursk
Three Grossmart supermarkets were open in Kursk in 2006
Supermarkets in Kursk.
Total space 6 141 sq.m.
Sales space – 3 607 sq.m.
4 supermarkets in Kursk
The fourth Grossmart supermarket was open in Kursk in 2006
ТC «TC Triumph
TC “Crystall”TC “Grand”
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Grossmart in regions:Vladimir
TC “Valentina”, Dvoryanskaya St., 10Belokonskaya St., 17 B
Supermarkets characteristics:
Total space – 2 026 sq.m.
Sales space – 1 145 sq.m.
The first Grossmart supermarket was open in Vladimir in 2006The second one was open in July 2006
2 supermarkets in Vladimir
GROSSMART 27
69 objects in Vladimir and Vladimir region
PI Trade chain stores
Total space – 22 012 sq.m.
Sales space – 10 347 sq.m.
As of June 2006, Grossmart owns 67 shops and logistic center of PI trade chain in Vladimir and Vladimir region
Vladimir – 32 shops + warehouse(total space 12 090 sq.m.)Gus-Chrustalny – 10 shops (total space: 1 536 sq.m.)Kovrov – 18 shops (total space: 7 436 sq.m.)Kolchugino – 7 shops (total space: 950 sq..m.)
Grossmart in the regions: “PI” chain in Vladimir region
GROSSMART 28
Grossmart in regions :HYPERMARKET in Yekaterinburg
HYPERMARKET in Yekaterinburg
2005: HYPERMARKET was open in entertainment center Park House
Hypermarkets' characteristics:
Total space – 6 325 sq.m.
Sales space – 4 000 sq.m.
GROSSMART 29
Grossmart in Moscow:stores “near the house”
Stores in Moscow
Total space – 11 361 sq.m.
Sales space – 5 426 sq.m.
7 shops in Moscow Concept – «next-door-to-home-store»
www.marta.ru/grossmart.php
Thank you very much for your attention!