With investments to leading position - 'Don Don' to invest in expansion of capacity, new products and marketing
The baking industry , " Don Don " came to the Serbian market in 2008 and since then has been constantly introducing new trends , and we will continue to do that, says for "eKapija ", Nenad Djordjevic , director of marketing and corporate development of " Don Don " .
- The year behind us was very successful . We introduced into the market a new brand " Our grain" , we redesigned the packaging and made it recognizable to our customers , we have started production of new units in Svrljig and Kraljevo , opened new markets , expanded product offerings to existing ones , employed 185 workers . In the middle of the year, we surprised our consumers with a prize contest in cooperation with " Delhaize ", and we had a large number of sales , national and local , focused on the customers and consumers - said Djordjevic .
Expansion into new production units and output growth in existing plants , had increased production of flour . Given that " Don Don " produces flour in "Žitoprodukt " in Zrenjanin , they decided to invest in increasing the processing capacity of the mill .
- In November 2013, we increased the capacity of milling wheat from 160 to 200 t / day .
Our interlocutor announces that priority in 2014 will be to consolidate its leadership position in the market .
- The plan is to start three new production units , and also to make some investments in existing plants , which will have a goal to expand capacity , primarily for the production of homemade bread , of the category that recorded a strong growth in 2013 , which we expect to continue in the coming year .
As explained by Djordjevic , from entering the Serbian market until today , their focus has been on the production of bread , and in this segment it has been invested 30 million euros . New seasonal flavors in the category of local bread are in plan.
- There will be changes in the packaging of some products, we will introduce single and double pack . In all categories, we plan to introduce products that have additional benefits for consumers , in line with the current trend of introducing healthy products .
One of the major priorities in 2014, will be to move towards baking products.
- Our idea is to have a larger number of processing plants for frozen and half-baked products , and in this segment we are planning more investments .
Our interlocutor says that the next big mission in 'Don Don' is consumer education. Frequency of purchase is the largest when it comes to white bread because it is purchased everyday by about 40 % of the population . In the case of black bread , the percentage is about 11 %, and special breads are bought several times a month in 30 % of consumers, as well as other baked goods.
- That is why we are introducing a team of promoters because we want to change this image and eating and buying habits of bread in Serbia . We want to offer nutritionally rich and nutritious products and to raise awareness about the importance of eating these breads .
The company plans to enter the Romanian and Italian market through distributors , their frozen products, manufactured in " Fidelinka " bakery , and expansion of cooperation with the markets in which they are already present .
- We expect the strategic regional partnerships with retailers ( " Delhaize " , " Mercator " , " Konzum " ) .
Investments in in 2014.
" Don Don " plans to invest EUR 2 million in the expansion of the capacity of local breads , interior adaptation of the retail premises ( shelves , racks for display ) , a larger number of processing plants .
- In our production facility in Pudarci, we have in plan major investments related to expanding the capacity of local bread. In 2013, we have introduced to the market the rural and rye bread " Our grain" , which within two months reached daily sales of 5,000 loaves, while sales of other categories of bread (homemade white and dark , Lazarov , monastery ) did not fall. This category has grown at the expense of the white loaf , and what consumers say really stands out in these breads , is the taste and freshness , as a result of the introduction of technology without additives . This category in last year grew by 40 % , and we expect growth in 2014 as well. We recognize the great potential in this category , which proofs the fact that in Europe the share of this category in the market is about 50 % , while here, it is considerably less .
Djordjevic added that after the successful redesign of packaging and creating product recognition in the previous year, in 2014, the focus of marketing will be to improve the sales premises and communication with consumers .
- Our team of sales managers and merchandisers already installed recognizable and well -designed shelves in retail premises in Belgrade, and in February it is in plan to set up more than 1,500 shelves throughout Serbia . Also, we have organized promoters in the largest centers of Serbia , which will from mid- January start to explain to consumers the value of all of our functional bread and give nutritional recommendations for use . Our goal is to have the bread as a food supplement , gastronomic delight and to make sure our customers know all the values of their favorite foods .
In accordance with these plans , the " Don Don " will hire more workers , since the company is forming own promotional team .
When it comes to processing plants, our interlocutor announces investment in equipment for processing frozen and half-baked product .
- At this point in the small shops in Serbia we have a very modest offer of baked goods , and that's what we want to change . We want to provide to a large number of our partners, a fresh , hot item in their shop , as well as to expand the range of these products . Fixed assets in the whole story are furnaces , and we are willing to invest in them . Here we see the benefit for our customers , as this will enable them to offer hot baked goods in their stores, but also for consumers, who will be offered a wide variety of bakery products in the next-door grocery store.
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