Small manufacturer Petersburg "Neva metal utensils" for several years, was able to take second place in Russia for the proceeds from the sale of pan — thanks to the original strategy developed on the model of Charles Hofer and Dan Schendel.
"You can not imagine how many other people we sawed pans," — said the commercial director of the company "Neva metal utensils" (NMP) Olga Ivanova. Unlike the heroes of Ilya Ilf and Yevgeny Petrov, they did not expect to find inside the gold. But seem to have found something better.
12 years ago the turnover NMP production of aluminum cooking utensils, was 50 million rubles. year. In 2010, it exceeded 1 billion rubles. Cast pan with non-stick coating to give the innovative leaders in the St. Petersburg market a small business. Today, the volume of sales (in money) cookware with non-stick coating NMP is second only to the French Tefal. It all started worse.
Alexander Sheremet’ev and Valery Deacons in 1999 founded the company on the basis of the factory "Red Vyborzhets" and for a long time, barely making ends meet. Olga Ivanova served as deputy chief economist and one seminar heard about the theory of analysis and planning of production portfolios, developed by American marketers Charles Hofer and Dan Schendel.
This theory provides an answer to the key question: what products the company has to produce in order to grow well or get a decent profit? According to Hofer and Schendel products in a portfolio should be selected on the basis of two parameters: the stage of its life cycle (the stage of development of its market) and the company’s competitive position in the market of these products. For example, you want to maximize profits — work with the goods on the stages of expansion and maturity. If the aims of the significant growth — manufactured products only in those segments that originate or are experiencing a rapid initial growth. But the company must necessarily have in each market’s strong competitive position (hence, potentially large market share). If the positions are weak, it is best to remove the product from the portfolio, in the long run it will not give any growth or profit.
Ivanova managed to interest a model-Hofer Schendel owners NMP. The first results of the analysis of their range shocked — three of the five areas of the company were unwinnable: some markets are dying at other positions NMP were weak. "The hardest thing was to apply the theory Hofer, Schendel in practice to realize that we must abandon the dead-end lines, and then firmly close them", — says Olga Ivanova. The owners of this went.
In 2003, the NRM has closed most problematic area — the production of polished pans. This segment is in a stage of saturation, to the same proportion of NMP was less than 5% (the company sold 10 thousand units per month pots) because the products were not competitive on price. "Our product, in spite of the interesting design, was twice that of competitors, because we have no access to cheap raw materials, as opposed to, say, the plants" Demidov "(included in Sual) and" Kalitva "(owned first" Rusal " , then Alcoa) ", — says Olga.
In 2004, went under the knife electric kettles. In the best years the company sold in the month to 20 thousand dummies (two-thirds of the total market), but they cost no more than 220 rubles., And NMP was often in the red. It was impossible to raise prices — the consumer would immediately switched to plastic kettles. In addition, the market declined due to the invasion of the same plastic.
In 2005 came the samovar with decorative painting, which were in demand as people trade goods. The company was one of the three major manufacturers of samovars, selling them for 2.2 thousand rubles. apiece. The margin was high (20%), but the volume of sales 2.5 million units per month income kopek. In addition, manufacturers are required to be installed in electric kettles and samovars heat sensors that automatically shut off appliances at boiling. "In the existing structure to build sensor was not. A production of the new design was worth big money, "- explains Ivanov. Samovars died.
In the summer of 2005 NMP took a radical solution — to shut down production of stamped pans with non-stick coating, which accounted for 45-50% of sales. This was a revolutionary step, as the company has been a significant proportion (15%) in the segment of low-cost products (up to 700 rubles. Apiece). Dominated here all the same, "Demidov" and "Kalitva", which together controlled about 60% of the market.
"Our distributors have twisted his finger to his temple: you lose the mass market! — Says Alexander Sheremet. — Five distributors of the 12 left. But if we do not shut down stamping, we would not have revenue growth of 25%, as it is now, and a drop of 10-15% per year. " Produce stamped pans are cheaper than the "Demidov" and "Kalitva" NWO would never have been able to, and on the market, the company held through improved coating technology (competitors loaded roller coasting, NMP is sprayed) and the thicker walls.
What could it be for the NWO new cash cow? The company’s portfolio was still a few products, mainly cast cookware. If extruded usually made of aluminum sheet, the molded cast aluminum alloy with silicon, it is heavier and more durable. But costs five times more expensive.
NMP since 2000 experimented with molded housewares, says Ivanov. Initially released on two thousand units per month, but sales have grown rapidly: the market was not similar proposals in the middle price class (from 700 to 1500 rubles. Apiece). In 2005, the most successful months, the company sold 50 thousand pieces of cast pans. The competition was not particularly, in Russia such dishes has not been done, almost no European brands were sold because of the high cost.
Thus, by 2005, the shareholders of the NWO realized: there is a promising market cast dishes and there is a relatively expensive product, which in the future may become a bestseller. First, it is cast pans average price class with a conventional non-stick coating. Secondly, cast pans with reinforced coating, which remains scratches on the forks (in the category above average — from 1.5 thousand to 2.5 thousand rubles.). The development of the last product the company had to spend seriously.
To start Sheremet’ev Deacons and bought another plant — in bottom of the Pskov region. The volume of investment in production in 2006-2010 was $ 12 million Most of the money went to the purchase of equipment for the coating.
The fact that the manufacturer of molded dishes, in fact, is the garbage: no man does not make the body pan or non-stick coating, no handles. For example, the NWO places orders for cover in two specialized companies in St. Petersburg and Belarus, and the handle is imported from Italy, Turkey and Korea. Collectors themselves cause a coating, so the manufacturer is no other way to stand out in the market, but to improve its quality. NWO has decided that this is what will be its trump card.
Typically, manufacturers are purchasing the non-stick coating based on polytetrafluoroethylene (PTFE) from companies DuPont and AkzoNobel. The method of deposition is simple and cheap,
but the production, toxic substance. "Neva metal utensils" decided to work with non-toxic coatings — water suspensions of PTFE upon which many companies have abandoned because of the complexity of technology. And she found a company in Yekaterinburg "Stalaflon," which began to do for NMP aqueous suspension of PTFE. This increases the cost of the product, according to experts, 10%.
But that’s not all. In the NRM decided that the best seller may be coated with a durable cookware that is not destroyed by the metal blades. The company has hired experienced engineers and began development. "We came up with a special structure of multiple layers of polymers and ceramics, to be coated. After that, it becomes strong enough to be able to use a metal object. This coating is called "Titan", although no titanium in it is not "- said Ivanov.
New items at once liked to distributors. In return for the year, three of the five wholesalers who refused to work with the NWO when production pressed glassware. In addition, the company actively engaged in marketing. According to wholesalers, NMP has become the champion among the producers of tableware by number of issued branded plastic bags, promotional leaflets and flyers.
In addition, the manufacturer is struggling with the "empty shelves" from sellers: NMP keeps in stock inventory on the complete range of 100 items, while the industry as a whole shortages are typically 30-60% range. Of course, we have to freeze the money, but Alexander Sheremet’ev convinced that nedoprodazhi — more evil than the deterioration of turnover. "That is why we are winning the competition — says Sheremet’ev. — We have more expensive, but there are 95% always in stock, and 5% can do in two days, if the buyer has the itch."
"For many years we were given the highest profit enameled pots" Severstal-enamel "(now" Steel-enamel. "- SF), but since 2009, the profit center is cast cookware NWO — says CEO of distribution company" Deltastar "Sergei Yasakov. — Who profits from the sale of one pans NMP is five times higher than that of forged frying pans "Demidov. ‘"
The new range has allowed NMP grow faster than the market — in 2008, the company’s revenue was 570 million rubles., In 2009 — 750 million, and in 2010 was more than 1 billion while the market as a whole in 2009 dipped by 30%, and in 2010, recovered by only 8%.
"" Neva metal utensils "successfully guessed the trend shift in demand for expensive, but more durable dishes" — said General Director of the research company "Amico" Andrew Zhubanov. Over the past five years, the proportion cast nonstick cookware on the market increased from 5 to 30% in value terms. This trend has not changed even in a crisis. In particular, in 2009-2010, in NMP fastest growing sales of the most expensive series, first of all, "Titan", which now account for 40% of sales. In the past year, according to Olga Ivanova, sales of "Titan" in the money 36% (with an increase of total revenue by 23% NMP). For several years, the company has increased its share in the sector cast cookware in terms of money up to 50%, and the whole Russian market cookware with non-stick coating to 20%.
In value terms, the share of NMP today is second only to Tefal, although in pieces, "Demidov", "Kalitva" Tefal and sell more. All market nonstick cookware Ivanov estimated at 8,000,000 units per year, NPM has released 1.6 million, "Demidov" — about 3 million
In 2008, the cast dishes noticed competitors, such as plant "Demidov" or Kukmorsky plant metalloposudy of Tatarstan. In addition, according to Andrew Zhubanov tableware distributors who earn money by forging trade, began placing orders for their brands in China or Ukraine. In particular, it was fashionable to register a trademark in Europe, to open an office there, to place orders in China and sell Chinese products in Russia as a European. The share of formal European, and indeed the Russian-Chinese brands of cookware cast (including experts call the Regent, Vitesse, Roendell and Gipfel) is growing.
But they can not oust the St. Petersburg company. "Basically, competitors try to knock down the price of NMP. But the price of housing and handles all about the same, only you can save on the cover. And this pan quickly lose consumer characteristics, and the buyer does not make the re-purchase ", — says Sergey Yasakov.
Meanwhile, the "Neva metal utensils" has decided to increase its lead over the followers. Current capacity, according to Ivanov, can produce up to 3 million pans a year. But the number of cases is available elsewhere: the suppliers NRM problems with volume growth. The company intends to invest $ 30 million in its own foundry. "As soon as we are having acquired its own capacity, you can seriously push imports", — says Olga Ivanova. And then not Tefal, and NMP can get all the laurels of the main producer of pans.