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Prod&Prod»

The catsups and sauces market and ways of its promotion

A long time, the catsup market was developing dynamic enough. However, the global crisis affected the positions of key players negatively and led the entire market segment of catsup to a standstill. More about this issue read in the article “Too thick” of the magazine “Food Promotion. Prod&Prod”.

Today the situation in the Russian food site of catsup can be called as an extremely ambiguous. Some players are publishing data that shows the growth of earnings as well as the growth of sales. While experts are arguing an opposite – a sharp decline in volumes of sales. In point of fact; the decumulation of natural volume of catsup in the market amounted about 25 tones over the past four years. Despite of the decumulation of non-monetary sales, the catsup market itself is gaining momentum steadily: it has almost doubled since 2005.Why is this so? The marketing researches confirm a growth of sales in value terms. The Russians still have a steady demand for catsup as for one of the first consumer products. A domestic consumer had no clear idea and some specific requirements for this product initially. That is why, under the brand of catsup various shoddy sauces, cheap tomato paste, etc was selling for a long time. Until now, while choosing the catsup the domestic consumer are continuing to focus on quite specific reasons. Thus, according to the marketing researches, more than half of those asked said the main factor while choosing the product is its type; more than a third of the respondents choose the goods on the experience of previous purchases and the price.

Even under the conditions of the market’s “stagnation”, the activity of the major operators is continuing to be extremely weak. Two holding control the market catsup in Russia almost completely. And the main opportunity of the development is an expanding line of goods of brands and distribution of the major players. In fact, the market is apportioned, and there are no new strong figures in it. There is a little quantity of goods from the local producers, which are sent on an errand priori. After all, marketing strategy and communications activities of the two major players put regional companies to losing positions in advance .

Small manufactures do not have a huge advertising budget for the active promotion of brands, even within their own region. In such circumstances, the local manufacturers should focus on the competent marketing policies and the search for unexpected solutions only.

Much depends on advertising. Today in order to attract consumers’ attention to television advertisement, manufacturers are increasingly choosing fresh, creative moves, rather than the usual proven templates. The main task of promoting any brand is the need to interest a potential customer, just to get his attention.

Based on an analysis of the situation in the catsup market for 2010, some predictions for 2011 can be made. According to experts, increase of cash flow with an overall of decrease in sales volume will be continuing not for a long. In the near future the market will come into a state of complete stagnation, and to overcome this stagnation will be difficult for everyone, even for the largest players of this industry.

There is an encouraging fact in challenging conditions of the catsup market: the market has room to grow and develop. Producers have the opportunities to attract new customers. To achieve this representation of the goods on the shelves is widened, and line of goods is expanding.

More details about situation in the catsup market read in the magazine “Food Promotion. Prod&Prod”.