Blue Ocean Strategy Development for FMCG Company: Russian Confectionary Factory Case-Study

Abstract:

 Society development in sphere of trade in consumption shows great changes since the beginning of the new century. The enormous speed of technological development in all spheres of life brings new competitors is not as effective as it used to be, and new methods of effective and sustainable development come draw more and more attention. One of them is the Blue Ocean strategy with was offered by Kim, W.C.; Mauborgne, R. [1]. This approach wins rising attention in all spheres of business and proves its effectiveness. In Russia the market of fast-moving consumer goods if becoming more and more competitive. This is especially clear in down economy in conditions of financial crisis and its consequences. Such products as chocolate showed decreased sales for the period 2014-2015 not only in Russia but also in many countries. For now, chocolate is hardly reaching the pre-crises rates. The chocolate produces have to drop the prices. Moreover, the modern highly technological and health-worried consumers become very choosy and want to be a part of process of production to get exactly what they want. Due to such situation the chocolate producers have to raise the range of products they produce to enormous scale. For example, the Babaevskiy Concern in Russia produces more than 30 types of the chocolate slabs only not taking into consideration other types of chocolate production like candies by the weight and candies in boxes. This leads to enormous costs. So we conducted the research for Russian confectionary factory with the aim of developing a Blue Ocean strategic basis for them.

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