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Annual Report 2010 - Baltika Breweries

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34<br />

<strong>Baltika</strong> <strong>Breweries</strong> | <strong>Annual</strong> report <strong>2010</strong><br />

Sales Development<br />

In <strong>2010</strong>, the Company’s Sales<br />

Division was re-organized<br />

partly due to centralizing sales<br />

channel management. A separate<br />

department was launched to deal<br />

with key national customers.<br />

Within the division, the regional<br />

sales structures were also<br />

individualized.<br />

In addition, the 1 st stage<br />

of the planned changes<br />

in trade marketing function<br />

was completed and the function<br />

was renamed as “Trade Channel<br />

Marketing.” The transformation<br />

was designed to ensure<br />

a new quality of management<br />

at points of purchase*, based<br />

on a deeper understanding<br />

of buyers’ motivation, and to take<br />

this motivation into account,<br />

depending on specific sales<br />

channels.<br />

The first stage of the<br />

transformation included developing<br />

long-term strategies for each<br />

trade channel, optimizing the<br />

principles and processes of crossfunctional<br />

planning for promotional<br />

campaigns, establishing standards<br />

for the activating brands at points<br />

of sale and training key employees<br />

on new operating principles.<br />

Additional transformation will<br />

involve upgrading buyer relations<br />

and synchronizing the operation<br />

of all commercial functions, as well<br />

as increasing the quality coverage<br />

of activations.<br />

The most recent year was marked<br />

by the addition of a significant<br />

number of non-beer beverages<br />

to the Company’s portfolio.<br />

To introduce new beverages<br />

to the market, a special model<br />

was developed, which ensures the<br />

balanced development of both beer<br />

and non-beer segments.<br />

* The point-of-purchase, or POP is the point where a buyer<br />

decides to buy this or that product, brand or package.<br />

The on-trade channel segment was actively developed,<br />

which led to the Company’s record-breaking<br />

performance — with sales growth exceeding 13 %<br />

in 2009. Employees of the on-trade channel continued<br />

to communicate about the Company’s brands in the<br />

HoReCa segment, by developing new segmentation<br />

of the retail trade, which will improve visualization of the<br />

<strong>Baltika</strong> brands for the channel’s target consumers.<br />

During the year, 4,316 <strong>Baltika</strong> employees, including top<br />

managers, participated in “<strong>Baltika</strong>’s Landing Party” action.<br />

This Program was organized by the Company to assist<br />

“field” employees in the sales department during high<br />

season and to share experience.<br />

On November 2 nd , <strong>2010</strong>, the Company received the<br />

“Supplier of St. Petersburg” award for its contribution<br />

to developing the consumer market from the City<br />

Government.

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