The company’s Vice-President Damir Imamovic delivered a report at World Food 2009 Russian Agriculture Products Forum on the prospects of agriculture products market developments in Russia and across the globe
— 2009-09-17 —

On September 17, 2009, as part of World Food 2009 business program, Vice-President of the Company Damir Imamovic delivered a report on the development prospects of the Russian and international agriculture products markets at the Russian Agriculture Products Forum World Food 2009.
The thesis of Mr. Imamvic’s report was as follows: Consumer Behaviors and Motivations as Regards Frozen Convenience Products in Crisis Conditions. How Do Producers Respond to Changes?
In August 2009 Produkty Pitania in cooperation with Marketing Research Agency AMI VETRA-Marketing held a survey to identify the trends in consumer behaviors as regards frozen convenience products in the economic crisis environment; Damir Imamovic spoke of the survey’s results in his speech at the Forum.
Survey results show that, despite the pessimism of expert forecasts, food products segment of the Moscow region has demonstrated little changes so far. Consumers also indicate that their financial positions are stabilizing. For instance, about 70% of surveyed Moscow residents stated that in the last 2-3 months their financial positions have not changed to a significant extent. So far the main savings actions consumers undertake in the crisis conditions involve less frequent shopping for fewer products (90% of respondents). At the same time the majority of consumers (92%) do not intend to change their convenient shopping locations.
According to the study, around 66% of surveyed consumers are buying similar quantities of convenience products as before. About 20% of respondents report reduction in the amount of convenience products they purchase and 4% more confided that they began to buy more products.
Consumers still value convenience products for simplicity, convenience and fast cooking (66%). If they have to save money, consumers will prefer to buy fewer products less frequently (92%) while the products from their preferred brands/producers will remain their primary shopping targets. Saving through shifting to cheaper products is an option to consider for no more than 37%. Of consumers
According to Produkty Pitania Vice-President Damir Imamovic, Studying consumer behaviors and demand in economic crisis environment is the most important area of activity for the Company because it helps better understand consumer needs and adjust our development strategies. The majority of Russians are exposed to a variety of financial challenges, which directly affect demand. On the whole, however, in the 4 years preceding 2008 inclusively consumption of frozen products was growing. In the last several years consumers attitudes to convenience products as a product category has changed. Our people are now used to the convenience that comes with such products, which, in accordance with 2008 data, have become part of daily routine meals of 86% of families. Around 51% of respondents regard themselves as active consumers of convenience foods. In our opinion, in big cities today’s key criterion for selection of products from one or the other producer is the price/quality ratio, while in smaller towns the price is most important. It is difficult to predict with certainty what effect the crisis may have on future consumer preferences. However, judging by the survey respondents’ answers, loyalty to brand/producer, quality, and taste of products remain key parameters for convenience foods preference. Around 95% of respondents cited these as the most important factors. Our first and foremost objective for today is to maintain customers’ loyalty to our products and always remain one step ahead of the general development trends on the frozen convenience products market.