The Group’s strategic goal is to expand its market share as one of the leaders in the baby food market of Russia and the CIS. In addition, the Group is expanding the geography of its business by entering new markets in China and in South-East Asian, Middle Eastern and African countries.
The Group expects to achieve its strategic goal by pursuing a strategy that includes the following objectives:
Capitalise on the growth of the baby food products market in Russia and the CIS
The Group’s core markets are still far from being saturated and are expected to grow further in terms of both quality and quantity. Upgrading production facilities, packaging, branding and marketing initiatives of the Group will provide additional opportunities to fully exploit both the shift in consumer preferences and overall consumption growth.
The Group’s objectives in the baby food market are as follows:
- Increase volumes and margins through expanding its brand and product portfolio.
- Capture new routes to market via a newly introduced distribution system.
- Capitalise on and increase the existing dominance in the government purchase programmes.
International expansion
The Group expands geographical coverage of its business by entering new markets, in particular those of China, Eastern Europe and certain countries of South-East Asia, as well as in the Middle East and Africa. The Group plans to expand its baby food business into new growing markets and to build a strong and competitive business in these new markets using the expertise gained from the markets in which it currently operates.
Further increase brand awareness and consumer loyalty
In order to enhance its position on the baby food market, the Group intends to continue investing in the expansion of its brand portfolio in both markets, with the aim of leveraging the existing consumer awareness into further improvements in the Group’s financial performance. The Group intends to achieve this by focusing more precisely on certain target audiences and by using a wider range of marketing tools to strengthen customer loyalty, increase recognition of existing brands and support re-branding of some of the Group’s products.
Focus on profitability and operating efficiency
The Group intends to continuously improve the profitability of its business, reduce costs and increase productivity through:
- Utilising modern production technologies and processes. Developing quality control and introducing new production technology are important components of the Group’s further development. The Group strives to maintain the equipment on its production facilities in line with the standards of the international food industry.
- Improving operating efficiencies. The Group’s management continuously works on cost and expense reduction through market monitoring and selection of the most preferred suppliers, improving production technologies and processes and increasing labour productivity.
- Streamlining baby food distribution system. The introduction of a new distribution system for the Group’s baby food products is expected to allow the Group to lower distribution costs.
Retain and attract professional management and personnel
The Group focuses on attracting the best available management and personnel. The Company’s management team is comprised of highly skilled professionals with experience in the baby food, clinical nutrition and dairy industry, as well as in marketing and finance. Motivation and development of the Group’s employees are among the key priorities of the Group’s strategy. The Group motivates its personnel, among others, through a system of basic remuneration and bonuses, whereby employees have a stake in the achievement of tangible results of the Group. In addition, the Company devotes substantial resources to professional development programmes, such as various training programmes to train newly recruited staff members and to improve the skills of experienced employees.