Integration of the “Rakhat” Jcs Production on the Cis Market

Table of Content

Research proposal Integration of the “Rakhat” JCS Production on the CIS Market “Rakhat” JSC is one of the biggest producers of the confectionery products in Kazakhstan. It has been set up in 1942 and successfully works for almost 70 years. Currently there are two manufactories of the company – in Almaty and Shymkent – which produce more than 250 names of different confectionaries. The products offered by “Rakhat” are quite successful on the Kazakhstani market; consumers value the high quality of the confectionaries.

However, regardless of the popularity of “Rakhat” in our country, the recognition of its production abroad is under the question mark. Research Objectives. The main research question: “Is it possible to integrate the confectionary products of the “Rakhat” on CIS markets? ” In order to answer the main research question it is necessary to reach the following research objectives: – to analyze the working process of “Rakhat” JSC; – to study the CIS market for confectionary goods; – to consider the opinions of local and foreign consumers about the products of the “Rakhat”.

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Research Methods. The information will be collected through the questionnaire and interview. Questionnaire will be distributed among the citizens and the guests of Almaty. The interview will be taken from the representatives of the “Rakhat”. The additional information would be collected from the secondary sources. Research Limitations. There are some limitations of the research. There is a problem with collecting the information about the preferences of the foreign customers because it is only possible to conduct the survey among the international students in KIMEP.

The conduction of the interview is under the question mark because it still should be arranged. II. Literature Review In order to investigate whether it is possible or not for “Rakhat” to enter the CIS market, it is important to study the strengths and weaknesses of the company and the markets of confectionaries in CIS countries. Also it is necessary to evaluate internal strengths and weakness of company and measure external opportunities and threats. I. “Rakhat” Mission of Rakhat Company: “Our destination is to afford the gladness to people with our delicious products.

Our activity is directed on the maximum satisfaction the great number of people that are in need of high-quality confectioneries, cherishing the ancient traditions of the past, and being the most up-to-date. We know how to produce excellent confectioneries, and we will upgrade for these purposes”. “Rakhat” JSC is one of the largest manufacturers of confectioneries in Kazakhstan with more than 60-years of history. First production of the confectioneries had been arranged in the year 1942 on the areas of the ormer alcoholic beverage factory, and had been using the equipments evacuated from Moscow and Kharkov during the wartime. Currently, production facilities are located on the two cities – in Almaty and in Shymkent. Universal nature of the manufacture, its scale and own line of the cocoa beans processing enables the company to hold the broadest assortment of the confectioneries among the domestic manufacturers. As of today the backlog of assortment of “Rakhat” JSC includes more than 250 names of various confectioneries, which refers to 10 various groups. The distinctiveness of the products of “Rakhat” JSC among the Kazakh manufacturers of confectionery is the priority production of the chocolate with the large variety. ” (Confectionary JSC “Rakhat” official web-page, 2011). Nowadays the products of Rakhat are represented not only in Kazakhstan. According to Confectionary JSC “Rakhat” official web-page (2011), the company exports its confectionaries to Russia, Uzbekistan, Tajikistan, Kyrgyzstan, Germany, China and Afghanistan. II. Kazakhstani market

Kazakhstan producers cover only 50% of total domestic market; other 50% is represented by imported goods (Holzhacker & Dauranov, n. d. ). The production equals 90. 7 thousands ton of confectionaries in Kazakhstan in 2009, while consumption equaled 151,2 ton, so approximately more than 40 tonn was imported (Holzhacker & Dauranov, n. d. ). The main importers of the confectioneries to the Kazakhstani market are Ukraine (more than 50% of total import), Russia – 38% and other – 11% (Holzhacker & Dauranov, n. d. ).

Ukraine importers are well known factories, such as Kharkov, Kiev, Dnepropetrovsk confectioneries named “Roshen”, “Konti”, etc. Moreover, the prices of Ukraine manufacturers are lower than average price of all confectionary import to Kazakhstan (Holzhacker & Dauranov, n. d. ). So, Ukranian confectionaries are the strongest competitors for JSC “Rakhat” as quality of their products is also high enough. Russian importers are well known confectionary factories like “Sladko”,“Krasnyi oktyabr”, “Russki shokolad”, “Fabrika Babaevo” etc.

In 2005 and 2009 Government of Kazakhstan temporarily increased customs duty on some confectionary products to protect Kazakhstani manufacturers (Holzhacker & Dauranov, n. d. ). According to Agency of Statistics of RK (2011), local Rakhat’s competitors are: Bayan-Sulu, Konfety Karagandy, Almatinskiy product, Aktobe confectionary factory, Hamle Company, Konfetki – Baranochki. There are also companies with smaller capacity: Kombinat-Vostok – Konditer, Madlen – Kz, Asiaagrofood etc in this industry.

In addition, statistics shows that JSC “Rakhat” has a very strong position – almost a half of whole production (47%) in Kazakhstan. The percentage of other Kazakhstani producers is the following: “Bayan Sulu” – 30%, “Konphety Karaganda” – 8%, “Rakhat-Shymkent” – 3%, others – 12% (Agency of Statistics of RK official web-page, 2011) “Sladko”, “Russki shokolad”, “Bayan Sulu”, “Rakhat”, “Konti”, “Roshen”, “Konfety Karagandy” are main companies of confectionary industry in Kazakhstan with products’ average price and availability evaluation (Holzhacker & Dauranov, n. d. ).

It helps to identify strategic group of JSC Rakhat – set of business firms that pursue similar strategies within an industry with similar resources, strategies or customers. So, strategic competitors of Rakhat are: Roshen (Ukraine), Slad’ko (Russia), Bayan Sulu (Kazakhstan). Generally, in Kazakhstani confectionery market Rakhat faces strong competitors from Ukraine, Russia and local companies. Despite this fact, it has large production and demand from customers and one of the leading confectionery companies in Kazakhstan which has big potential to integrate into the foreign market in long-run future.

III. CIS countries’ markets A. Russia Nowadays the structure of the Russian market for confectionary good is presented by 85% of local producers and 10% of import and, as a result the experts consider this market as almost formed and close to saturation (Kozyrev, 2010). Therefore, it would be difficult to enter Russian market for new producers. Moreover, general public prefers to buy particular brands which they chose despite the prices, quality etc. The Russian market of confectionaries is divided among big consolidated groups.

For instance, “Obyedinennye konditery” group of companies includes 17 local confectionaries plants, which covers the biggest part of the market. Except “Obyedinennye konditery” there are such big companies as Nestle S. A, Roschen, “Lamzur”, “Slavyanka”, “Sladko” etc. The influence of these companies is based not only on big production capacities and variety of goods, but also on marketing strategies such as active support of the brand, well-build distribution and logistics. In addition, there is no incomplete niche on the market.

Despite this fact, new goods appear on Russian markets and local producers always try to keep up with them and try to find new decisions. One of the opportunities of the Russian producers is that the foreign companies try to sell their confectionary goods on higher price (Kozyrev, 2010). Consequently, Russian confectionaries are relatively cheaper to the imported production. Second opportunity is that the demand for local confectionary goods is quite inelastic. As Kozyrev (2010) states, the consumption of confectionaries in Russia is always stable no matter what is the economic situation in the country.

Another opportunity for big players in the market of confectionary goods is that there is “an increasing dependence of the sales level on the volume of marketing and advertisement support” (Leontyev et al. , 2006). Large companies can afford to promote their production and consequently to increase the sales. Even though, it should be taken into consideration that for small companies it is a threat because for some producers the cost of this advertisement is too high. According to Kozyrev (2010), “big players of the market cover the largest parts due to the popularity of the brand.

This factor is supported by uniqueness of the product and the good reputation of the producer”. This could be considered as the strength of the Russian producers. B. Ukraine Today the market of confectionary goods in Ukraine passed the stage of quantitative growth and stepped in phase of qualitative improvement of the production. One of the biggest segments of confectionaries market in Ukraine is chocolate goods. The capacity of internal chocolate production has substantially increased in comparison to the last few years (Sokolov & Sakhno, 2006).

Last years there is new tendency of increasing marketing budgets of producers, which leads to the growth of the demand for these goods, strengthens the competition and excludes the small producers. Moreover, the market for chocolate goods might be considered as formed one. Existing players almost completely satisfy the needs of the consumers. The local production also started to force out the foreign chocolate suppliers. The importers take the little part of the market, which is not growing.

Ukrainian companies have the competitive advantage on the market of the confectionaries because some of the raw materials (sugar, dairy products and flour) are relatively cheaper than in importing countries (Leontyev et al. , 2006). It could be considered as an opportunity for Ukrainian producers because their goods are cheaper relatively to those which offered by foreign companies. The biggest players on Ukrainian market for confectionaries – “Kraft Foods International”, which represented by Trosyanetskaya KF, “Nestle” represented by “Svitoch”, “Roshen”, “ABK”, “Malbi”, “Rainford” etc.

The import is represented mostly by Russian producers which are represented by little part. C. Belarus The Belarusian market of confectionary goods is covered by 7 local producers and the importers. The total production of these companies is 122. 5 thousands of tons. These capacities have not been changed for almost 5 years (Leontyev et al. , 2006). Nowadays Belarusian producers face with difficulties in competition with the foreign companies on the local market. One of the opportunities of the Belarusian companies is that there is no tax for the local producer on buying technical equipment from other countries (Leontyev et al. 2006). The main threat of Belarusian suppliers is the high cost of local raw materials and consequently high prices of goods in comparison with the Russian and Ukrainian companies. As a result, the import of the confectionaries to Belarus is increasing by 7-25% annually (Leontyev et. al, 2010). 7 biggest local producers of Belarus – “Spartak”, “Kommunarka”, “Krasnyi Mozyryanin”, “Krasnyi pischevik”, “Ivkon”, “Sladushka” and “Vitelpa”. D. Central Asian countries and the countries of Caucasus Unfortunately, there was not found any information concerning the confectionary goods market of countries of Central Asia and Caucasus.

IV. Internal Environment: Strength and Weaknesses 1. Marketing The marketing strategy of the company is to distribute its products in Kazakhstan and Central Asia successfully. The company seeks to build the trust everywhere they are. Marketing strategy of the company is fully consistent with company’s mission and objectives. The “Rakhat” company positions itself as a producer of the wide range of confectioneries, which are suitable to the different segments of consumers (Confectionary JSC “Rakhat” official web-page, 2011). Marketing mix.

As of today the assortment of “Rakhat” JSC includes more than 250 names of various confectioneries, which refers to 10 various groups such as caramel, sweets, chocolate, toffee, dragee, fruit jelly, marsh-mallow, biscuits, waffles, sugar-free products, cocoa-powder, semi products (Confectionary JSC “Rakhat” official web-page, 2011). “Rakhat” JSC is the singular confectionery enterprise in the Kazakhstan, which developed special production focused on people, who suffer from diabetes. The main aspect of the company work is the quality of the products they distribute to the customers.

The system of the quality management, based on the standards of ST RK ISO 9001-2001, had been developed and introduced on “Rakhat” JSC (Confectionary JSC “Rakhat” official web-page, 2011). Company promotes its products through TV advertisement, printed and on-line catalogs, and local and foreign exhibitions. Pricing policy of the company corresponds to the realities of today’s market of confectionaries and general economic situation in the country. “Rakhat” JSC offers discounts and other economic incentives to its wholesalers for joint work. Product life cycle. Rakhat” company currently is in the stage of maturity. It means that “Rakhat” is in a consolidated industry, where a few large companies dominate, each of which struggles to differentiate its products from their competitors. These companies are Bayan-Sulu, Konfeti Karagandi and Ukraine producers. Price becomes a dominant concern, so profit margins decline. Brand and Corporate Reputation. Corporate brand of the “Rakhat” definitely associates with high-quality and tasty confectionaries. “Rakhat” is a good example of national and popular brand of Kazakhstan.

Company also has good reputation among general public. Company executes standards of quality control for its products and also uses environmentally friendly equipment for cooling. 2. Research and Development. “Rakhat” JSC always improves its machinery and equipment for manufacturing of confectionaries. Moreover, technologists of the company pay a lot of attention to the development of new kinds of confectionaries. Due to constant work of specialists, 20 new kinds of products replenished the assortment of the company (Confectionary JSC “Rakhat” official web-page, 2011).

Using of more advanced technologies and innovations in production of products and in production process, increases customers’ value (Confectionary JSC “Rakhat” official web-page, 2011). 3. Operations and Logistics. Operations strategy determines the product or services to be manufactured. At present time, 6 workshops work in the factory (Confectionary JSC “Rakhat” official web-page, 2011). Factory’s laboratory carries out quality control of raw materials and products at the each stage of manufacturing process. For the last several years, old equipment was absolutely replaced by modern one in all 6 workshops of the factory.

The economic scheme of a municipal and technological heat supply has been implemented. The cooling system has been improved and became more ecologically safe. The level of automation in the factory constantly increases. Reconstruction of more than 100 units of operating mechanisms was executed (Confectionary JSC “Rakhat” official web-page, 2011). All these actions allow “Rakhat” JSC to provide efficient work of shops, to support strictly parameters of technological processes, to increase capacity of work shops and to use more advanced technologies.

Company plans to increase the production volume and to expand the marketing outlets through bulking of exports volume. As a part of an industrial infrastructure the effective scheme of logistics operates. It allows carrying out a great volume of export and import operations, to organize timely delivery of products to the consumers, to fully satisfy customers’ demand during peaks of consumption of confectionaries. Moreover, warehouses are equipped by installations for an air conditioning. Trucks are equipped by thermo isolating cargo bodies (Confectionary JSC “Rakhat” official web-page, 2011). . Human Resource Management. One of the company’s important goals is to strive and make “Rakhat” JSC as the place of full-fledged and prestigious employment (Confectionary JSC “Rakhat” official web-page, 2011). Human resource management includes: • Recruiting – “Rakhat” JSC has administrative office on its factory where the process of recruiting is completed. • Training – accomplished on all personnel levels with the new technological innovations or process improvements as needed. • Development – work with employees conducted with support of developing motivation and reward system. V.

Analysis of Strategic Factors (SWOT) SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of JSC “Rakhat”. It involves specifying the company’s objective and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Identification of SWOT for JSC “Rakhat” is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from SWOT. We (the authors of the paper) applied modified version of SWOT analysis with weights and ratings usage.

The summaries of Rakhat’s Internal and External Factors Analysis are shown in Tables 1 and 2. Weights in column 2 are from 1. 0 (Most important) to 0. 00 (Not important), based on that factor’s possible impact on Rakhat’s strategic position. The total weight is equal to 1. 00. Ratings in column 3 are ranged from 5. 0 (Outstanding) to 1. 0 (Poor) and based on Rakhat’s respond to that factor. Weighted score in column 4 represents product of each factor weight and its rating. Table 1. Rakhat’s Internal Factor Analysis Summary – IFAS |Strengths |Weight |Rating (response) |Weighted score | | | |(impact) | |(3)*(4) | |S1 |Top-quality products | 0,15 | 4,80 | 0,72 | |S2 |Long-term experience in production of confectionery | 0,10 | 4,50 | 0,45 | |S3 |Developed system of distribution and logistics | 0,10 | 3,50 | 0,35 | |S4 |ISO ertification and awards | 0,10 | 4,40 | 0,44 | |S5 |The only producer of diabetic items (competitive advantage) | 0,15 | 4,90 | 0,74 | | |Weaknesses |  |  | | |W1 |Relatively high price comparing with other manufacturers | 0,15 | 1,90 | 0,29 | |W2 |Too conservative strategy of development, lack of innovations | 0,05 | 2,50 | 0,13 | |W3 |Small volume of export to CIS – countries | 0,10 | 1,90 | 0,19 | |W4 |Small amount of investments in fixed assets | 0,05 | 2,10 | 0,11 | |W5 |Limited capacity of factory | 0,05 | 2,20 | 0,11 | | |Total score | 1,00 |  | 3,51 | Source: created by authors of the paper Table 2.

Rakhat’s External Factors Analysis Summary – EFAS | |Opportunities |Weight |Rating |Weighted score (3)*(4) | | | |(impact) |(response) | | |O1 |New geographic markets (Central Asia countries) | 0,15 | 3,80 | 0,57 | |O2 |Increase market share through Custom Alliance | 0,10 | 4,50 | 0,45 | |O3 |Technology development | 0,10 | 2,50 | 0,25 | |O4 |Strengthern positions in foreign countries | 0,10 | 3,40 | 0,34 | |O5 |Fight back market share from Ukraine rivals in Kazakhstan | 0,10 | 2,90 | 0,29 | | |Threats | | | |T1 |Threat from Russian and Belarus rivals in Kazakhstan | 0,15 | 3,90 | 0,59 | |T2 |Increase prices of raw materials (sugar sugarcane and etc) | 0,05 | 2,50 | 0,13 | |T3 |Cancellation of vital contracts and partners | 0,05 | 1,90 | 0,10 | |T4 |Collaboration of competitors | 0,10 | 3,10 | 0,31 | |T5 |Decreasing of market demand on confectionary products | 0,10 | 2,20 | 0,22 | | |Total score | 1,00 |  | 3,24 | Source: created by authors of the paper

So, we have rated list of most important factors gathered from environmental scanning of Rakhat and thus provides information that is essential for business strategies formulation. III. Analysis The main question of research project is whether JSC “Rakhat” Confectionery Company could be integrated in CIS countries’ market. The literature review provided sufficient information about the confectionery industry and market of some CIS countries as Russia, Belarus and Ukraine. As a result, the findings show that in these countries’ confectioneries market there are many strong competitors and therefore, it is difficult to enter their market. However, there is no any information about confectionery industry and market in Central Asian countries.

That is why we decided to make a survey to collect information about these countries. It is necessary to consider the opinions of foreign people about their local confectionery market and JSC “Rakhat”. The survey sample was 120 students. The respondents are KIMEP international students from Turkmenistan, Kyrgyzstan and Tajikistan. The survey was conducted in form of questionnaires. The questionnaire consists of seven multiple questions. Turkmenistan The total number of questionnaire respondents from Turkmenistan was 48 people. Initially, Turkmenistan students were asked whether they have ever tasted JSC “Rakhat” products in Kazakhstan. All of 48 people answered “Yes”.

The next question was how they measure “Rakhat” products. Most of respondents marked “high” (42 people) and 6 people “very high”. Then we asked to assess JSC “Rakhat” confectioneries in comparison to their local confectioneries. 36, 9 and 9 respondents answered “high”, “very high” and “medium” respectively. [pic] Source: “Rakhat” Questionnaire 2011 Questionnaire respondents were asked to indicate whether local or foreign confectioneries dominate in their country. Majority responded “foreign” (30 people) and others “local” (18 people). Consequently, we found that in Turkmenistan confectionery market there potential competitors such as Turkish “Ulker” and Russian “Krasnyi Oktyabr”.

Local confectionery companies are “Lagyn” and “Bars”. Finally, respondents were asked would they like to have “Rakhat” products in their country. All of 48 people answered “Yes”. Tajikistan We surveyed 42 KIMEP international students from Tajikistan. 36 people tried JSC “Rakhat” products in Kazakhstan and remaining 9 people didn’t try. Majority of them stated that they measure “Rakhat” products as “high” (24 people) and only 12 people “medium”, 6 people “very high”. To the question how do they asses “Rakhat” product comparing to their local confectioneries, 30 people answered “high”, 6 people “very high” and remaining “medium” (6 people). [pic]

Source: “Rakhat” Questionnaire 2011 When respondents were asked to indicate whether local or foreign confectioneries dominate in their market, 24 respondents marked “foreign” and 18 respondents “local”. According to the questionnaire results, Tajikistani people prefer foreign “Ulker”, “Nestle” confectioneries and local “Qand”, “Shirin”, “Shafoat”. At the end, there was question would they like to have “Rakhat” products in their country. Almost all respondents said “Yes” (36 people) and only 6 people said “No”. Kyrgyzstan The number of KIMEP international students from Kyrgyzstan made up 30 people. All respondents ticked off that they tried “Rakhat” confectioneries. 2 people measured “Rakhat” products as “very high”, 12 more people “high” and 6 people “medium”. Then questionnaire respondents were asked how they consider “Rakhat” confectioneries in comparison to their local ones. 24 people responded “high” and 6 people “very high”. [pic] Source: “Rakhat” Questionnaire 2011 Questionnaire results showed that in Kyrgyzstan there are such foreign confectionaries as “Nestle”, “Krasni Oktyabr” and local “Ata”, “Tatty”. Finally, almost all of questionnaire respondents (24 people) told that they would like to have “Rakhat” products in their country and 6 people would not like to have. During the survey, questionnaire respondents were interested to participate and shared their opinions.

Because most of them told that they consume confectioners frequently and they liked “Rakhat” confectioneries. Most of respondents told that they like “Rakhat” chocolates, especially “Kazakhstan”. When questionnaire respondents were answering to the question about their local confectioneries, most of them could not remember their brands and were asking each other. Unfortunately, during survey we did not meet students from Uzbekistan. So the information about Uzbekistani confectionery industry and market remain unknown. To sum up, survey results show that people in Kyrgyzstan, Tajikistan and Turkmenistan are not so familiar with their owl national confectionery brand. It means that foreign competitors are dominant.

Majority of respondents measured “Rakhat” products as “high” and some of them even measured as “very high”. This shows that the quality of “Rakhat” products is very good in comparison to confectioneries in their countries. Questionnaire results demonstrated that there is large demand for confectioneries due to frequent consumption of confectioneries. Taking into account all these, we may reach conclusion that “Rakhat” has potential to integrate into Central Asian confectionery market and even become successful new entrant to the market. IV. Discussion & Conclusion JSC “Rakhat” is one of the most successful confectionery companies in Kazakhstan.

The purpose of research was to understand whether it is possible to integrate “Rakhat” confectioneries into CIS market. The main objectives were to investigate CIS countries’ confectionery industries and customer’s demand on confectioneries. Moreover, it was necessary to identify the main competitors in CIS market. The literature review sufficiently provided information about the confectionery industry and market in countries such as Russia, Belarus and Ukraine. However, there was not any information about confectioneries in Central Asian countries. Therefore, survey was conducted with international guests in our country in order to gather more information about confectionery industry in Tajikistan, Uzbekistan, Kyrgyzstan and Turkmenistan.

Due to the data collected about Russia, Belarus and Ukraine confectionery industries there are very strong competitors in this region. These countries have their own local confectionery companies which fulfill all the needs and wants of their customers. Moreover, several foreign companies from Ukraine such as “Roshen” and Russia “Sladko” have a large demand in their own country as well in other countries. Their products’ quality and prices satisfy the consumers. It means that it will be very difficult for new companies enter the market. According to the data collected from the survey, the confectionery industry of Central Asian countries is not so developed. Because the questionnaire respondents did not indicate their own local confectioneries.

Majority of respondents states that foreign confectioneries dominate in their market. Mostly the same Ukraine and Russian confectionery brands were mentioned such as “Roshen” and “Sladko”. Due to the results of survey, the quality of “Rakhat” is high and foreign people liked “Rakhat” products. Moreover, almost all respondents would like to have “Rakhat” products in their country. Generally, it might be said that “Rakhat” has big potentiality in Central Asian countries and would probably successfully integrate into their market. As a result of all collected information following issues could be suggested: • Invest in Research and Development Research and development is an investment in a company’s future.

It is needed to be done because current product lines become outdated and overtaken by company’s competitors. Companies that do not spend sufficiently in R&D are often said to be ‘eating the seed corn’. • Improve technical base Nowadays confectionary industry is developing with high speed and Rakhat’s competitors offer various types of chocolate and other sweets in the market which are more advanced in terms of ingredients and texture. In order to be able to compete with them Rakhat should change or add equipment of new era that will let them produce goods of higher quality with variety of ingredients. • Pay more attention to the premium segment

Comparing with Rakhat’s competitors from Ukraine we can see that they focus on premium segment of sweets by offering various types of chocolate with different filling at high prices. Rakhat may also follow this direction by investing on production of high class sweets and biscuits. • Improve logistics process It is very important for the products to be on time in a needed place so company should provide all necessary stuff for accomplishing this task. Company should think of effective and efficient warehousing system with a low lead time for each order. • Invest in promotion In order not to loose market share and attract new customers Rakhat should make additional investments in conducting advertising campaigns not only due to holidays but during the rest of the year.

In addition it should develop PR activities and make people closer to the company’s production process by organizing excursions to the fabric and producing a film for broadcasting it further on TV. • Create new packages Package is a first customer’s impression and it should be attractive, desirable and competitive. Rakhat should create new design of the packaging that will force people to buy and taste it. In conclusion we may say that in the changing environment with presence of a strong competitors such as Roshen and ABK it is a “must” task for Rakhat to be able to compete with them by using well organized procedures and making investment in the improvement of the current technical process of production and operating.

Finally, the main research question whether it is possible to integrate “Rakhat” products into CIS market or not, was answered. Following strategy recommended above, it has opportunity to integrate into Central Asian confectionery market in short-term, however, it is not possible to integrate into Russia, Belarus and Ukraine market in short-run due to strong competitors. During the research there were some limitations. First of all, the larger number of foreign people was not available. In this research, only foreign people of young ages and which live now in Kazakhstan were responding. Secondly, we did not meet Uzbekistani people and therefore information is absent about their confectionery market.

Thirdly, the internet sources are not enough to estimate and analyze foreign confectionery market, especially of Central Asian countries. Also we planned to conduct interview with employees of “Rakhat” company, but they arranged the time of interview at inconvenient date after the deadline of research project. In addition, there is no any information about remaining CIS countries and there were no any representatives of that country at KIMEP. For further research of this issue it is necessary to collect more new information about confectionery industry of CIS countries. Also, it is necessary to conduct survey in those particular countries and the sample should be much larger. References Agency of Statistics of Republic of Kazakhstan (2011). http://www. eng. stat. z Confectionary JSC “Rakhat” official web-page (2011). http://www. rakhat. kz Holzhacker, H. & Dauranov T. n. d. Sweets in Kazakhstan: all will be in chocolate. ATF Research. Retrieved on September 24, 2011, from http://www. atfbank. kz/research/2010/76655. htm Kozyrev S. (2010). “Nazad v buduschee”. Retrieved on September 24, 2011, from http://www. sostav. ru Leontyev O. , Laschevskaya O. & Pirogovskiy V. (2006). “Respublika Belarus’. Konditerskaya promyshlennost’”, RZB Group. Retrieved on September 24, 2011, from http://www. bel. biz Sokolov A. & Sakhno O. (2006). “Obzor rynka konditerskih izdelii”. Retrieved on September 24, 2011, from http://www. pro-consulting. com. ua

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