Brand Story Russian Tea Market ² 96

Brand Story

Russian Tea Market ² 96% of population drink tea regularly ² Tea Market Volume – 169 000 tons ($1, 41, 5 bln) ² Consumption – 1, 1 kg per head ² Consolidated Market: 5 producers control 70% of the Market

Russian Tea Market v Product Segments: Wissotzky Invasion

Russian Specialty Tea Market v Price Segments: (20 -25 tea bags packages) Wissotzky Invasion Low Mass/Medium Masstige Premium (<40 rub/package) (40 – 65 rub/package) (66 -90 rub/package) (90 rub/package<) Princesses (Java, Gita) Akbar Lisma Riston Dilmah Milford Lipton Twinings Curtis Newby Greenfield Pukka Tess Ahmad Contemporary Specialty Tea market share: 16% Specialty Tea market share: 52% Specialty Tea market share: 22% Low Margin; Good Marginality; High Margin; Low Costs; Normal Costs; High Costs; Normal competitive level High competitive level Extremely High competitive level Normal competitive level Mayskiy Specialty Tea market share: 10% Dr. Stuart’s

Masstige Segment: Positioning Strategies of Competitors “Lipton tea can do that”/ ”The Best in tea – the Best in me” “Enjoy the best of your tea” ² Health, Energy, Natural quality ² Brightness, Vividness, Different types of tastes ² Core: women, men <35 y. o. ; managers, office personnel. ² Core: women, <35 y. o. ; office personnel, housewives ² Lifestyle: active, searching for everyday challenges, do not have free time ² Lifestyle: searching for new emotions, love to travel, spending time with friends ² Consumer Insight: “Due to my energetic and dynamic life I need healthy and revitalizing tea” ² Consumer Insight: “Sometimes I want new experiences or just to indulge myself”

Masstige Segment: Positioning Strategies of Competitors “…changing mood, not world…” “English Tea № 1”/ “For each of You” ² Harmony of Tastes, Bouquet of teas ² Traditions, English quality, Variety of Tastes which suit women’s changeable mood ² Core: women, <35 y. o. ; managers, office personnel, housewives, creative professions ² Core: women <35 y. o. ; managers, housewives, creative professions, high income ² Lifestyle: active, spends free time at home or with closest friend (not many of them), devotes herself to family, emphasizes her feminity ² Lifestyle: proactive, stylish, follows the world’s tendencies, independent ² Consumer Insight: “I like when my mood is emphasized by each detail, including tea” ² Consumer Insight: “I want to feel harmony in my family, at my workplace, in every thing I do. Even when drinking tea”

Premium Segment: Positioning Strategies of Competitors Newby “Gets you back to you”/ “Taste of England since 1706” “Tea in its truest sense” ² Traditions, Outstanding quality, Experts in teas, The most rare tea blends ² Traditions, English quality, Variety of tastes ² Core: women 25 - 50 y. o. ; managers, housewives, high income ² Core: women 25 - 50 y. o. ; managers, housewives, creative professions, high income ² Lifestyle: seeks for luxury, spends time with business partners, tries to establish new tendencies or to follow only the most fresh ones ² Lifestyle: doesn’t have time for her private life, stylish, follows fashion trends, likes classics in modern style ² Consumer Insight: “I try to find a me-time moment in busy, fast and fickle life. In these moments I want something stable and reliable” ² Consumer Insight: “I’m a connoisseur and all I choose is only the Best”

Tea in Consciousness of Consumers Mimic attack Moments of life Lifestyle Core: women, 25 - 50 y. o. , professionals, connoisseurs Core: women, <30 y. o. , careerist

Tea in Consciousness of Consumer Tea is an attribute, accessory Tea is a friend Tea is a helper

Mimic strategy Women that imitate the practices of consumption of successful connoisseurs ² ² ² City: Moscow, St. Petersburg Art: Russian Events: reading about them Beverage: Chilean wine Tea: Wissotzky ² ² City: Paris, Milan Art: European Events: participating Beverage: Italian, French wines ² Tea: newby

Core of the new brand ? ² Women, age: 30 – 50, married, have children ² Education: higher, arts courses ² Income: average, above the average (have money to buy expensive brands once per month) ² Housewives, administrative bosses (not linear managers), creative jobs, etc. ² Psychographic features: § Active lifestyle and opinion; § Interested in fashion, arts; § Follows the latest tendencies; § It’s important for her to connect herself with a special referent group of most successful women; § Believes in traditional quality.

Wissotzky tea brand ? Connoisseur Extended Identity Authenticity Pivotal Identity Classics Selectivity Quality Constancy in fast changing world Brand Essence Nobleness and Beaty of Traditions of Russian Aristocracy Russian Traditions of noble class Culture Refinement of Taste Estate Predominance Aesthetics Reverence of women

Imitating Upper Class, trying look like most successful women, follows the practices of referent group: visits museums, interested in arts, works on her taste Quality, Traditions, nobleness, Classics, Good Taste, Beauty, Success, Recognition Quality, naturalness, Variety of Tastes als isu Usage of design elements of premium brands: special background in letters W y. V Traditions of quality of “Wissotzky”, World reputation, Tea of Russian aristocracy in XIX century Possibility to feel involvement in the elite group; feel the nobleness, refinement Ke Re a Be son lie to ve Nobleness and Beaty of Traditions of Russian aristocracy al ion ot fits Em ene B Fu n Be ctio ne na fits l Va lue s Pe rs on ali ty Es s en ce Brand Pyramid

brand Positioning Brand name Quality, Traditions, nobleness, Classics, Good Taste, Beauty, Success, Recognition Nobleness and Beaty of Traditions of Russian aristocracy in tea Brand name – tea, which emphasizes good taste of noble class I want to show my noble position in society and success in each detail Women, age: 30 – 50, Housewives, administrative bosses, creative jobs. Core Brand Values Brand Essence Brand Proposal Consumer Insight Target Audience

Naming ² Waltz by Wissotzky ²?

Marketing Mix Product Place Price Promotion • Tea of noble society in Russian Empire; • Wissotzky - expert in tea. • Azbuka Vkusa, Globus Gourmet, 7 th Continent, Alye Parusa, Hediyard and other high price retailers • Masstige price segment – between the premium and mass segments; • Costs more than Ahmad tea, but less than Twinnings; • Approximate price: 90 rub/package of 25 tea bags. • Ho. Re. Ca – Russian restaurants; • Retail – prize for purchase (fan, etc); • Digital – special product website

Moodboard ² The Movie