New development strategy
— 2005-04-11 —

Produkty Pitania Company is implementing its 2005 development strategy that includes further promotion of the company’s key brand – Zolotoy Petushok. Development of the company will be administered in two stages, - says President Stefano Vlahovich. – The first stage of objectives was the construction of a processing facility and creation of technologic facilities that would be unique to Russia. The second stage, which started early in 2005, will promote our Zolotoy Petushok trademark as the most demanded one across Russia and CIS.

Demand for frozen convenience foods in Russia have sky-rocked,  as since in 2000 - 2004. production growth grew in 2003 by 32%. The company’s sales exceeded average frozen convenience foods market growth rates and the company’s share in this segment expanded.

As the fourth production facility is put to operation in 2005 the total capacity will grow to about 600 tons of products a day. At the same time production facilities are designed in such a way as to ensure further costs reduction and to provide for production of products using more complex recipes.

In 2005 growth rate in the market segment will slow down. Sales volume will grow owing to larger amount of added and consumer value products including vegetable and vegetarian courses as well as due to powerful intervention in the regions. Priorities for 2005 include the launch of the fourth facility, market position improvement through expansion of distribution, promotion of Zolotoy Petushok trademark and adding importance to marketing and branding.

In 2004, certain sectors within the company were reorganized to streamline business processes. As a result Strategic, Corporate and Trade Marketing departments became independent divisions to carry out strategic planning and promote trademarks.

In 2004, the company introduced 11 new products in various categories including poultry and meat-based products as well as ready-to-eat dinners and hot snacks. Thus Zolotoy Petushok becomes the strategic brand dominating the brand portfolio of the company. Products under this trade mark represent 90 % of total sales of company products, says T. Gurich, Produkty Pitania Vice-President for Marketing, - In addition, research results indicate that consumers think of Zolotoy Petushok as high quality product first and chicken meat comes to their minds only in the second thought. For this reason the company decided to combine several groups of products under the umbrella brand.

She also emphasized the importance of marketing support tools that help build loyalty to brands. Managers of the company are convinced that due to correct positioning and the new proactive promotion strategy, Zolotoy Petushok will become a truly national brand.