Rus News Journal

A ruler leave

Instincts push the companies to constant expansion of assortment - the conclusion to the market of new grades raises incomes of the company and improves image. But the big assortment complicates distribution and branding, and also complicates a choice to the consumer. Reconcile the contradiction offer strategy " can; time “ the subbrands which problem - to create bright event, and then silently to leave from a scene.

how many should be grades at one brand? The answer seems obvious: the more, the better. At first sight, the aspiration to give to the consumer choice possibility quite logically - a conclusion of a new grade automatically increases incomes. Growth of sales occurs at the expense of time increase in frequency of purchase, attraction of new consumers, switching of attention from competing brands.

Besides influence on sales, assortimentnye novelties are also the tool of maintenance of modern image of the company and a brand. Mark which is not offering novelties, risks to seem lagging behind. The obvious decision as a result arises: expand a ruler, increase sales, form image of the advanced company.

“ When our confectionery association has been created, at us at two factories was issued about 700 different kinds of production. Such excessively big assortimentnym nearby it is very difficult to operate, - Ekaterina Kapralova, the director for corporate questions of confectionery association “is sweet“ speaks . - We have considerably reduced assortment, having united production most part under a brand “is sweet“. But also now in it 240 positions are, we plan to clean 30 more % “.

Widely walking
Assortimentnye of an ambition to the companies it is necessary to commensurate with vital realities. One of them - “ length of a shelf “. “ Many shops, especially network retail, allocate a place on a regiment according to sales volumes. If at the company of 30 % of the market it receives 30 % of a place on a regiment of this category, - Nikita Morev,
the director for marketing Milagro speaks . - to Receive an occasional seat it is possible only for money that strongly increases expenses on assortimentnye innovations “.

Besides, a share of the network trade, allowing to present rich assortment, yet does not exceed 20 %. Floor spaces of other roznitsy are rather limited. “ in 2003 we have deduced four berry berry juices under mark of juice “I“. Now they give 15 % of sales of a brand. Thus distribution of juice “I“ across Russia - 27 %, and berry juices - only 5 %, tells Alexander Yerofeev, the chief of the project holding “Lebedjansky“ “Juice“. - The matter is that shops which have possibility to present this nishevoj a product, not so it is a lot of “.

Other problem - imidzhevaja. Any expansion of assortment though brings almost automatically additional sales, washes away a brand. Assortment expansion can be divided into two basic types: vertical and horizontal. Vertical - start of new grades in other price segments. Horizontal - start of new kinds of production within one segment.

especially dangerously vertical expansion. Mark should be positioned accurately in one of three price segments as the logic of a choice of the goods in them is absolutely various. In economic (nizhnetsenovom) a segment a primary factor at goods choice - the price. In mass (average) the choice defines a price and quality parity (value for money). For a bonus (high) segment on the foreground there is an image of the goods.

Many Russian companies do not trouble themselves with similar restrictions: they have got used to use assortment as the tool of reaction to changing market. Has burst crisis - the cheap version of a product is created, population incomes have raised - becomes “ bonus “. But such approach confuses the consumer and does not allow to position a brand in a certain price category.

Horizontal expansion of assortment - the offer of new kinds of production within one price segment - causes to a brand not so fatal damage. But too it is dangerous: “ extending “ a ruler, it is necessary to formulate more widely all positioning. And “ to extend “ it it is possible no means always. “ three years ago we have deduced a pizza under a brand of “Morozko“. Formally it is the frozen half-finished product, a product of the same category, as other assortment of a brand. But it has appeared that the Italian pizza badly is on sale under mark at which strong Russian image, - Olga Danilov speaks. - as a result we have made for a pizza a separate brand of “Rimio“ “.

But the main problem which experts in marketing should face: during any moment race behind riches of assortment leads to that the consumer ceases to understand that to it offer and as it to make a choice.

Riches of a choice
Futurologist Elvin Tofler in 1970 in the book “ future Shock “ (Future Shock) has foretold that through pair decades consumers will suffer not from absence of a choice, and from its surplus and “ can appear victims of this remarkable super - an industrial dilemma: an excessive choice “.

later 30 years Peter Sili (Peter Sealey), the former director for marketing Coca - Cola, became the active propagandist of the theory created by it “ simple marketing “. The basic idea: manufacturers should reduce sufferings of the consumer and as much as possible simplify to it a choice. Naturally, not from - for humanistic reasons, and for competitiveness increase.

“ 30 % of kinds of brands which are let out by the majority of the companies, simply are not necessary “ - Peter Sili in the book " confirms; Simple marketing “ written to the co-authorship with Stephen Kristolom (Simplicity Marketing: End Brand Complexity, Clutter and Confusion). The slogan finds the response and in the hearts of Russians. “ personally I, when see in shop the battery from different grades of one brand, simply I pass to the next shelf where all is simple and clear, - Nikita Morev admits. - Many companies do not try to explain at all to the consumer, those or other grades what for are necessary. Simply deduce them on the market - let people understand “.

Peter Sili has formulated a problem over which in 90 - h years many large manufacturers in the West began to reflect. “ an icon “ To the new theory there was a radical reduction of commodity rulers of several brands on which has gone Procter & Gamble in the middle of 90 - h years. At that point in time the company possessed rather various assortment, for example, Head & Shoulders had 30 kinds, and tooth-paste Crest - 52. President P & G Derk Dzhager has declared: “ Incomprehensibly, how much difficult we have made a choice for the consumer “. After “ sequesterings “ from 30 kinds of shampoo H & S half has been left only, and all assortment of the company was reduced to third. On third incomes Procter & have grown also; Gamble, visually having shown that “ it is less better, yes it is better “.

the Way of the Samurai
the Companies which own a leading position in the market, can constantly update the brand, without being afraid “ kannibalizatsii “ old grades. So do many global corporations (Procter & Gamble or, for example, Gillette). For the others other approach more approaches: it is possible to enter “ time “ the grades supporting a base grade and updating image of a brand. And it is desirable to transform each new start into a great occasion.

In 2002 company SUN Interbrew has understood that it is necessary to optimise assortimentnyj a portfolio - the competition in the beer market became aggravated. Red beer became the first assortimentnoj a novelty - it becomes with addition karamelnogo a malt extract and does not demand manufacture re-equipment. While factories prepared for more difficult innovations, SUN Interbrew in November, 2002 has let out “ Red Redκξε “.

At first it was supposed that it will be a tactical move, but the novelty has appeared successful, and the company has decided to support a new grade advertising. Of an exit of enough widespread grade of beer have made “ Counter “ assotsiirovav “ Red Redκξε “ with Ireland (on a legend, Irish have developed the recipe). After start “ Red “ began to give 18 % of incomes “ Klinsky “ thus that the segment of all not light beer makes no more than 5 %. Sun Interbrew has understood that has groped a pot of gold.

In parallel with start “ Red “ the company conducted scale research of consumer preferences. Samples of various kinds of beer from every corner of the globe, and both tastes, and communication strategy tested. Each new grade was estimated on two basic scales: differentiation of a brand and readiness for purchase. So the most perspective grades have been found. Certainly, they were offered already also by other manufacturers, but, as a rule, in higher price segments. Also did not create round them a sensation.

Further event developed on already fulfilled “ stranovomu “ To the scenario - new grades became attached to any exotic country. Sometimes it became any way enough, but allowed to unite all starts in one communications. In June of last year has appeared “ Klinsky the Samurai “ (so-called “ dry “ beer in which there are less than calories, - is considered that it is easier drunk). To spring of 2004 have let out “ Klinsky Arriva “ (“ Mexican “ beer at which cooking the cold filtration is used).

Now all three new grades give more than 50 % of sales “ Klinsky “. “ the Conclusion arises by itself - if we have not started these novelties, it is not known, as though we now felt in the market. This year “Klinsky“ has risen from the fourth on the second place. Also it is the big success, after all the first place occupies a brand “Baltic“, - tells a brand - the manager of a trade mark “Klinsky“ Julia Makkallom. - Besides, start of new grades has allowed us to win east areas of Russia which have been very badly adjusted on otnoshenieju to “Klinsky“. But our novelties were so bright that distributors could not ignore them. In 2003 of sale “Klinsky“ in the east have grown on 83 % “

Not always Coca - Cola
Sun Interbrew declares that does not do of the subbrands of idols and is ready to deduce if necessary “ fulfilled “ grades from the portfolio. Experts consider it as the most optimum policy - to keep invariable a base product and from time to time brightly to start novelties of the limited period of validity. Such approach perfectly reconciles the dialectic contradiction assortimentnogo management: necessity of the offer of novelties and preservation “ laconicism “ rulers.

Similar strategy has found the fullest embodiment in technology of creation “ Seasonal “ podbrendov and grades with the limited period of validity. In this case a grade do not clean “ on - silent “ and at once say to the consumer that it will be on sale limited time.

“ Not all novelties can remain in the market for a long time, however it does not mean that it is necessary to refuse them: these grades can give good short-term effect, - Konstantin Kuzmin, the director for marketing Pepsi Co notices . - the Main thing that time innovations approached mark, did not destroy its image “. Time offers become attached to those or other events: to seasons (for example, “ only this summer “) To bright actions (the sports championships or anniversary of a city), to calendar dates (New year or, for example, the Lent).

By New Year`s holidays of 2003 Pepsi Co has let out on the Russian market a seasonal grade of the title brand - Pepsi Blue. As appears from the name, the subbrand differed colour. To taste it was more “ cold “. The New Year`s offer have supported television advertising in which Father Frost sang a song about Pepsi Blue. Probably, it is answer Pepsi to Christmas activity Coca - Cola which has managed to stake out the first behind itself this holiday. How much successful it has appeared such “ the time offer “ says that fact that by a New Year`s season of 2005 Pepsi Co again deduces Pepsi Blue on the market.

the Main problem which should be solved at creation “ time offers “ - the organisation of the termination of sale of a time grade in the appointed term. It is necessary to predict sales volume precisely: if in distribution will arrive more goods, than it will be necessary during action of the limited term of the offer, consumers till the summer will buy New Year`s “ a gift “ from the company. “ an accurate absolute conclusion of a product from the market to carry out extremely uneasy, it demands very disciplined approach to manufacture planning “ - Konstantin Kuzmin notices.

Triumph time offers did not wait
Sometimes surprises give the companies. For example, “ Vienna “ has let out a beer grade “ Neva Triumph “ as the typical time offer: it was “ it is devoted “ 300 - letiju St.-Petersburg. And in goods advertising it was specially underlined that sales will stop after end of festivals. However dynamics of a subbrand has appeared so good that the company has decided to leave a grade in the portfolio.

However how to keep a grade on regiments if the promise to stop its release before has been made? “ we have arranged special promo - the action in which course have asked consumers to vote: whether it is necessary to the company to let out further “Triumph“ or not, - Tatyana Antonchik, the manager under corporate relations of “Vienna“ speaks . - Participation in voting has accepted about 100 thousand persons. 90 % have voted for “Triumph“ “. Today, not to wash away identity “ Neva “ the factory plans to make “ Triumph “ an independent brand. So the company can and realise the revealed potential of a product, and to remain true to the main rule of construction assortimentnoj rulers - be easier, and to you will be pulled.