Dynamic of import, export and production

• The data of the analysis indicates that for 10 months in 2013 compared to the same period in 2012 breakfast cereal market Ukraine has risen considerably.

• The volume of production was increased by 13%. The rate of growth of exports breakfast cereals outside Ukraine has reached 31%.

Import Export Production

Dynamic of import, export and production of breakfast cereals, 2012 year relatively to 2013 year

2012 year 2013 year

LantmännenDr.

Oetker Nestle

EcorodBio

PlanetStart Аха Vitalis Fitness HrutkaGold

Flakes

Corn flakes without impurities + + + +

Corn flakes with low sugar + +

Multi cereal flakes without impurities + + + + +

Multi cereal flakes with low sugar + + + +

Cornflakes with impurities

Multi cereal flakes with impurities + + +

Flakes, 300-350 g + + + + + + + +

Flakes, 70-100 g +

Individual packaging - cap

Choosing Market Niches

Company TM ProductWeight,

gCcal Wheat Rice Barley Rye Corn Honey Raisins

Price, UAH

Lan

tmän

nen

StartNatural corn flakes 375 327 + 3,87

Coated corn flakes 280 342 + 4,82Honey corn flakes 300 343,5 + + 4,67

Аха

«AXA Harmony» fruits and nuts

250 321,3 + + + + + + 7,60

«AXA Harmony» tropic fruits

250 280,8 + + + + + 8,20

«AXA Harmony» 350 + + + + + 5,43Dr. Oetker Vitalis Crunchy flakes 375 434 + 5,87

Nes

tle

FitnessOriginal 250 370 + 9,20

Fruit 350 364 + 10,57Hrutka Corn flakes 190 7,11

Gold Flakes

Original 330 + 6,06

With sugar 300 + 6,83With honey and

peanuts300 + + 7,50

With berries 300 + + 7,33Ekorod Ekorod Organic oat flakes 300 355 5,33

Bio Planet Bio Planet Original corn flakes 300 361 14,00

Main Competitors

- Women and men from 18 to 50 years

- Women who wave an active lifestyles

- work

- study

Potential customersPopulation – 45,489,600 (January 2014)

Women from 18 to 50 years - 9,687,423

Target Audience

18%

Total Potential

ABOUT PRODUCT: Breakfast cereals «Brekker» specially developed for active people who keep track of their time and food. The unique packaging saves consumers time and effort easily - just take ‘corn’ and open packaging by one motion. After breakfast you can easily throw the cap in trash without spending time to wash dishes.

NAME: TM «Brekker»

SLOGAN: Your breakfast everywhere LOGO:

Hypothesis #1

Front view:Back view:

(Testing version)

Packaging

PRICE = TC + Profit + VAT + Intermediary margin + Slotting fee

Pricing

PRICE = 1,7 + 0,51 + 0,44 + 0,40 + 0,75 = 3,8 UAH

Corn flakes «Brekker» will supply in Shops, Groceries and Supermarkets.There are «Brekker» will be placed on branded shelves near dairy products.

Place & Promo

32% of respondents preferred flakes over other dry breakfast.

(chart 1)

43% of respondents preferred corn flakes

(chart 2)

Results of quantitative research (SPSS)

32% 43%

Most popular impurities:

25% Chocolate 11% Raisins

14% Honey 9% Jam

Results of quantitative research (SPSS)

25%

14%

11%9%

(other)

GOAL RESULT

Target segment Have breakfast out side (35%)

Consumer qualities of breakfast cereals Speed of cooking (40 %)Health (25%)

Consumer impacts the purchase Price (24%)Flavor impurities (20%)

Attitude to one portion size of packaging One portion size of packaging is convenient (35%)

4Рs elements:

Modifications of product, complementary products Flakes (35%)Corn (43%)With impurities (69 %) – chocolate, honey, raisins, jam

Price influence Low price(36%)

Most appropriate place for sale Supermarkets (84%)

Most effective methods of promotion TV commercials (27%)External advertising(26%)POS materials (25%)

Results of quantitative research (SPSS)

We decided to conduct thesurvey in public places to createa friendly atmosphere.

We chose McDonalds and KPIpark.

Focus group participants werestudents.

By social indicators they suitsin our pattern of potentialconsumers.

Focus group

focus group #1 focus group #2

The group consisted of students who frequentlyconsume cereals (mainly flakes) at home and at theuniversity during whole day.

They are attracted by the speed of cooking and taste.

They also pay attention to the price.

They’re willing to pay from 6 to 10 UAH per 1 package.

They want to have the opportunity to add chocolateand fruits to serving of cereals.

The group consisted of girl students.

They consume cereals rarely, not in the morning, only they want or need.

They are attracted by the ease of use, speed of cooking and taste.

Respondents preferences were given to flakes and chocolate balls.

They liked an idea of packaging per serving as they would be able to take flakes to the university or a journey.

Results of quality research (focus group)

New «Brekker» is more convenient and allows to taste different flavors

There is a spoon in each «Brekker» pack to minimize time and accelerate the consumption.

Hypothesis #2

Impurities & Flavors

COST of product «Brekker»

Avg. cost of 1 kg of raw, UAH

Amount in product, g

Cost of raw in theproduct, UAH

Total cost, UAH

Corn flour 1,7 65,0 0,12

0,42Honey 40,0 7,0 0,28

Starch 8,0 1,0 0,008

Salt 1,2 1,0 0,0012

Sugar 12,0 1,0 0,012

COST of packaging «Brekker»

Cost of 100 pcs.

Cost of 1 pc. Total cost, UAH

Cup (D-210) 90,0 0,91,28Plastic cover 36,0 0,36

Branded spoon 1,9 0,019

Price for impurities

Impurity Weight, g Price, UAH

Chocolate 20 1,6

Honey 20 1,6

Raisins 20 1,6

Jam 20 1,6

Price for «Brekker»

PRICE = TC + Profit + VAT + Intermediary margin + Slotting fee

PRICE = 2,3 + 0,69 + 0,6 + 0,54 + 1,03 = 5,25 UAH

«Brekker»will be realizing by vending machines in business centers of the city

«Brekker»will be producedin 7 pieces packaging per each week.

Place & Promo