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MARKETING STRATEGIES:
WEST VS EAST




                              «Bookclub «Family Leisure Club» -
                       Western strategy on the Ukrainian market


Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская   Trade mission in Ukraine, 20-21.09.2012.
Book ClubКлуб «Клуб Семейного Досуга» 2009/апрель
Книжный «Family Leisure Club» 2009/march
СОДЕРЖАНИЕ




         Company profile

         Marketing strategy

         5 differences in marketing: West vs East




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Company profile

    Bookclub in Ukraine:
    Established in year 2000                                       LATVIA




     from 2004 belongs to Bertelsmann                         LITHIANIA

     AG, Germany
                                                                                                     Russia
                                                                             Belarus
     Head office of FLC Group for
     businesses in Ukraine, Russia,
     Belorus                                          POLAND
                                                                                                    Kharkov

     the biggest publishing house of
                                                                                     UKRAINE
     Ukraine                                                                            46 M
                                                   SLOVAK
                                                   REPUBLIC

     serves 1.7 Mio club members
                                                     ROMANIA               HUNGARY

     manages 80 retail club shops                                                        MOLDOVA




     manages FLC group distribution
     center




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: 4Р



                        PRODUCT
                                                                              PRICE




                                                 Marketing complex
                                                         4Р




               PROMOTION                                                      PLACE




          20.09.2012.                                  Наталья Виноградская           4
Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: Unique product

                    Yearly Book Club releases 400 new exclusive titles and 1200 republications
                                      Of bestselling ukrainian and foreign authors

                                               2011 bestsellers




Author:         Vasyl Shklyar           Luko Dashvar          Marie-Bernadette Dupuy      Romain Sardou


Title:            Zalyshenets             Selo ne ludy          L'enfant des neiges    Pardonnez nos Offenses


Cps sold:           110 000                  60 000                  280 000                     220 000



Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: Distribution




                                      Multi channel distribution


                       B2C                     B2C                     B2C                     B2B
              Club Direct Mail         Club Retail            Online                  Trade
              - 54% of turnover        - 35% of turnover      - 7% of turnover        - 4% of turnover
              - Market position № 1
                 1
                                       - Market position №    - Market position № 1   - Market position № 5
                                       1




                             Orders from all channels and FLC group businesses are fulfilled
                                         by Book Club’s new distribution center




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: Distribution. Direct Mail

                          Every year bookclub’s member receives by mail:
                                                              8 additional catalogues with special
               4 main catalogues                                   actions & sweepstakes




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская                                           7
Marketing strategy: Distribution. Shops




    1st Club shop opened in 2005

    80 shops by 2012

    recruitment channel for 150 T new
   members annually
                                                                         Kharkov




                 1                                       One shop
                                                         Several shops




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: Distribution. Internet

                                                www.bookclub.ua
  360 000 orders annually
  On-line support
  Wide range of delivery methods                                                      New! E-books
   Social network for members
  Mobile version of the shop
  New! E-books
  New! Digital catalogue                                                    New! Digital catalogue


                                                Social                   Mobile
   Bets online bookshop award
                                                     Club pages

                                    Mой Клуб         Members networks




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Marketing strategy: Distribution. Distribution center

          New distribution center in Kharkiv provides orders packing & logistics for FLC group
                                businesses in Ukraine, Russia, Belorus
                New logistics                                 New Distribution Center in Kharkiv


      Warehouse:
       Established to serve up to
         3.0 MM members
       12,800 m2, 12.0 MM goods
         in stock
       45,000 parcels per day on
                 1




         peaks
       Transportation logistics to
         350 delivery points in
         Ukraine, Russia and
         Belorussia



Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
5 Differences in marketing:
  №1 – Direct Mail customer profile


            Germany vs Ukraine                                Germany vs Ukraine
               Male/female                                          Age




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
5 Differences in marketing:
№2 – customer’s shopping criteria
         Ukrainians vs Germans pay more attention to brand’s reputation




                       © IFAK Institute GmbH & Co. KG 2008-2009

                                                                          2
5 Differences in marketing:
  №3 – Western creative materials


                Der Club
                                                                  FLC Ukraine




                                                     Western
                                                      creative
                                                   in marketing
                                                     materials
                                                  does not work
                                                    in Ukraine




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
5 Differences in marketing:
№4 – additional catalogues with goods/services

        TRAVEL OFFERS               HOUSEHOLD GOODS           GARDENING         MAKE UP




             Why additional catalogues with goods/services offers did not work in
                                          Ukraine?

       club members trust the brand “Book club “Family Leisure Club” as books expert and
    reliable books distributor vs situation in Bertelsmann’s German book club “Der Club” where
          additional goods & services turnover is more than turnover from the books sales.




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
5 Differences in marketing:
  №5 – Marketing staff




    Marketing manager in Europe:             Marketing manager in Ukraine:      Marketing manager in FLC:
     works in established structured         works in unclear, unstable        works in unclear, unstable market
    environment – market situation is        market economy situation           economy situation, but within clear
    clear & predictable                                                         company’s budget trends
                                              Has limited data about the
     Has all necessary data about           market, competitors and            Has all necessary data about the
    the market, competitors &                customers                          market, competitors & customers
    customers
                                              Often works without long term    Works within confirmed marketing
    Works within confirmed                  marketing plan                     strategy & action plan
    marketing strategy & action plan,
    and strictly within his Job              There are many marketing           Being constantly trained
    description duties                       specialists on the market, but very (seminars, master-classes from
                                             few experienced in Direct Mail      experienced foreign colleagues)
                                             business




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
Thank you very much for your attention!


         Nataliya Vynogradska
         Strategic marketing department director
         natalia.vynogradska@bookclub.ua
         Тел: +38 057 7838895
         «Book Club «Family Leisure Club», P.O.Box 84, Kharkiv, 61001
         www.bookclub.ua




Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская

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Vynogradska Nataliya

  • 1. MARKETING STRATEGIES: WEST VS EAST «Bookclub «Family Leisure Club» - Western strategy on the Ukrainian market Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская Trade mission in Ukraine, 20-21.09.2012. Book ClubКлуб «Клуб Семейного Досуга» 2009/апрель Книжный «Family Leisure Club» 2009/march
  • 2. СОДЕРЖАНИЕ Company profile Marketing strategy 5 differences in marketing: West vs East Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 3. Company profile Bookclub in Ukraine: Established in year 2000 LATVIA  from 2004 belongs to Bertelsmann LITHIANIA AG, Germany Russia Belarus  Head office of FLC Group for businesses in Ukraine, Russia, Belorus POLAND Kharkov  the biggest publishing house of UKRAINE Ukraine 46 M SLOVAK REPUBLIC  serves 1.7 Mio club members ROMANIA HUNGARY  manages 80 retail club shops MOLDOVA  manages FLC group distribution center Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 4. Marketing strategy: 4Р PRODUCT PRICE Marketing complex 4Р PROMOTION PLACE 20.09.2012. Наталья Виноградская 4 Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 5. Marketing strategy: Unique product Yearly Book Club releases 400 new exclusive titles and 1200 republications Of bestselling ukrainian and foreign authors 2011 bestsellers Author: Vasyl Shklyar Luko Dashvar Marie-Bernadette Dupuy Romain Sardou Title: Zalyshenets Selo ne ludy L'enfant des neiges Pardonnez nos Offenses Cps sold: 110 000 60 000 280 000 220 000 Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 6. Marketing strategy: Distribution Multi channel distribution B2C B2C B2C B2B Club Direct Mail Club Retail Online Trade - 54% of turnover - 35% of turnover - 7% of turnover - 4% of turnover - Market position № 1 1 - Market position № - Market position № 1 - Market position № 5 1 Orders from all channels and FLC group businesses are fulfilled by Book Club’s new distribution center Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 7. Marketing strategy: Distribution. Direct Mail Every year bookclub’s member receives by mail: 8 additional catalogues with special  4 main catalogues actions & sweepstakes Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская 7
  • 8. Marketing strategy: Distribution. Shops  1st Club shop opened in 2005  80 shops by 2012  recruitment channel for 150 T new members annually Kharkov 1 One shop Several shops Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 9. Marketing strategy: Distribution. Internet www.bookclub.ua 360 000 orders annually On-line support Wide range of delivery methods New! E-books  Social network for members Mobile version of the shop New! E-books New! Digital catalogue New! Digital catalogue Social Mobile Bets online bookshop award  Club pages Mой Клуб  Members networks Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 10. Marketing strategy: Distribution. Distribution center New distribution center in Kharkiv provides orders packing & logistics for FLC group businesses in Ukraine, Russia, Belorus New logistics New Distribution Center in Kharkiv Warehouse:  Established to serve up to 3.0 MM members  12,800 m2, 12.0 MM goods in stock  45,000 parcels per day on 1 peaks  Transportation logistics to 350 delivery points in Ukraine, Russia and Belorussia Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 11. 5 Differences in marketing: №1 – Direct Mail customer profile Germany vs Ukraine Germany vs Ukraine Male/female Age Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 12. 5 Differences in marketing: №2 – customer’s shopping criteria Ukrainians vs Germans pay more attention to brand’s reputation © IFAK Institute GmbH & Co. KG 2008-2009 2
  • 13. 5 Differences in marketing: №3 – Western creative materials Der Club FLC Ukraine Western creative in marketing materials does not work in Ukraine Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 14. 5 Differences in marketing: №4 – additional catalogues with goods/services TRAVEL OFFERS HOUSEHOLD GOODS GARDENING MAKE UP Why additional catalogues with goods/services offers did not work in Ukraine?  club members trust the brand “Book club “Family Leisure Club” as books expert and reliable books distributor vs situation in Bertelsmann’s German book club “Der Club” where additional goods & services turnover is more than turnover from the books sales. Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 15. 5 Differences in marketing: №5 – Marketing staff Marketing manager in Europe: Marketing manager in Ukraine: Marketing manager in FLC:  works in established structured  works in unclear, unstable  works in unclear, unstable market environment – market situation is market economy situation economy situation, but within clear clear & predictable company’s budget trends  Has limited data about the  Has all necessary data about market, competitors and Has all necessary data about the the market, competitors & customers market, competitors & customers customers  Often works without long term Works within confirmed marketing Works within confirmed marketing plan strategy & action plan marketing strategy & action plan, and strictly within his Job There are many marketing Being constantly trained description duties specialists on the market, but very (seminars, master-classes from few experienced in Direct Mail experienced foreign colleagues) business Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская
  • 16. Thank you very much for your attention! Nataliya Vynogradska Strategic marketing department director natalia.vynogradska@bookclub.ua Тел: +38 057 7838895 «Book Club «Family Leisure Club», P.O.Box 84, Kharkiv, 61001 www.bookclub.ua Книжный Клуб «Клуб Семейного Досуга» @ Наталья Виноградская