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Introducing a Premium Chocolate Brand in Kazakhstan Jagannadha Chaitanya Jayanti Yong-Jun Lee Zoheb Mohammed Hakjun Youn

Jagannadha Chaitanya Jayanti Yong-Jun Lee Zoheb Mohammed Hakjun Youn

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  • Jagannadha Chaitanya Jayanti Yong-Jun Lee Zoheb Mohammed Hakjun Youn
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  • Introduction Target Market Kazakhstan The Exporter Barry-Callebaut Trade Cost Marketing Wrap-up
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  • Kazakhstan
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  • Oil wealth: Real GDP growth average 8.6% during 2003-8 SWF: National Oil Fund of Kazakhstan diversification of national wealth source
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  • Regard for European brands Cautious in choosing food products Emerging middle class Increase in number of Super Markets
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  • Chocolate consumption per capita Overall spending % on sugar/confectionary way higher than the world average Chocolate import Growing at average of 22% for the last 5 years Complementary goods Consumption and demand for coffee increasing
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  • Friendly government policy to foreign trade Trade freedom 41 st from 183 countries (2009) Reduced VAT 12% since 2009, down from 15% Member of the Eurasian Economic Community (EAEC) Free trade from Jan. 2010
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  • Barry-Callebaut
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  • Chocolate for Food Manufacturers: Supplies 35% of the worlds chocolate manufacturers. Chocolate for Artisans & Chefs: Offers ready to use and sell products Chocolate for Consumers: Home to Renowned Chocolate Brands Jacques, Sarotti and Alprose.
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  • Sales volume up by 14.6% Revenue up by 12.8% Geographic expansion and organic growth.
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  • Largest processor of cocoa in the world. 27,000 metric tonne production capacity in Russia. Controls 15% of worlds cocoa resources. Economies of Scale and density achieved by 40 production facilities around the world.
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  • From Russia with Chocolates!
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  • Common Custom Union among Russia, Kazakhstan and Belarus Common Custom Space from Jan. 2010 + free custom duties + free of economic limitations + simplified custom formalities Unified Economic Space
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  • Weight: 100g Size 7.5 x 15.5 x 1 cm
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  • 20 Feet Container + Payload: 22 tons + 200,000 bars Freight Cost + Truck: max $4,000 + Train: probably cheaper Custom Clearance Charge: $40 to $3,000 Total Transport Cost: max $7,000 or 3.5/bar
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  • The Customers and The Competition
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  • European Brand Manufactured from freshly ground Cocoa Conforms to all health standards Premium Product at Affordable prices
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  • The Verdict
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  • Global Market Information Database Euromonitor Barry-Callebaut Annual Report 2008/9 Index of Economic Freedom 2010, Heritage Foundation & Wall Street journal World Tariff Profiles 2008, WTO World Outlook Report 2006-2011: Chocolate & Chocolate-Type Confectionery Products Packaged for Shipment UN Comtrade CIA Factbook Roshen: http://roshen.com