History of Belite Vitex. History of creation
Features of national and international marketing using the example of Belita-Vitex JV
Features of national marketing using the example of Belita-Vitex JV
The history of cosmetic enterprises CJSC Vitex and JV Belita LLC began with the creation in August 1988 of the republican base Belbytsnab of CJSC Belbytkomplekt, headed by Viktor Tereshchenko.
Later, in November 1989, a joint venture (JV) LLC "BELITA" was created, the director general of JSC "Belbytkomplekt" Viktor Tereshchenko was elected head of the board.
On the Belarusian side, the founder was the company Belbytkomplekt CJSC (currently Vitex CJSC), and on the Italian side, the company producing cosmetic preparations GIVIEFFE JSC. The Italian side provided the supply of equipment and handed over the formulas of several cosmetic products, the Belarusian side provided the new enterprise with personnel and production space.
Today, CJSC VITEX and JV BELITA LLC are recognized leaders in the production of domestic cosmetics, including professional products for hairdressing salons, beauty and massage salons, as well as oral hygiene products and everyday household chemicals.
A complex of production buildings, intra-company communications, technical and technological equipment from well-known domestic, Russian and European equipment suppliers - all this allows us to consider the enterprise a representative of the new wave of commodity producers of the new decade.
The enterprises operate a full production cycle: from the development of a unique formulation of the drug, the creation of packaging design, followed by the development of the product in production, to the sale of products through their own distribution network of branded stores and sections, their own trading houses, general distributors and dealers operating both on the territory of the Republic Belarus, as well as in the CIS countries and abroad.
The flexible structure of the marketing mix, competitive prices, timely deliveries and decent quality have brought JV BELITA LLC and VITEX CJSC to the number of companies that are the pride of the national economy.
The mission of JV "Belita" LLC is to always meet the needs of modern business, promptly provide high-quality services to clients, thereby contributing to the success of partners' business.
A scientific coordination center for cosmetics was created at the joint venture Belita LLC and Vitex CJSC, the main goal of which is aimed at the development and introduction into production of highly effective cosmetic products.
Currently, testing is carried out on the equipment of research institutes of the Academy of Sciences and the Belarusian State University, independent foreign expert centers, as well as on our own equipment in two testing laboratories accredited in the accreditation system of the State Standard of the Republic of Belarus and in our own beauty salons and hairdressing salons. Each product has a hygienic certificate and confirmation from the Ministry of Health.
In its activities, JV Belita is based on the following laws of the Republic of Belarus:
- · Law of the Republic of Belarus No. 462-XII “On Enterprises”;
- · “On the protection of consumer rights”;
- · “On standardization” and “On certification”.
To analyze a company in the national market, we will consider product, pricing, sales and communication marketing policies - the 4p marketing mix.
Product policy, company products.
Today the company's assortment is large, the main share of all products consists of hair care products, skin care products for the body, hands, feet; decorative cosmetics. The company also produces household chemicals: dishwashing and laundry detergents, cosmetics for hotels. The Belita-Vitex product range is presented in Appendix A.
Cosmetics recipes are created using the latest active natural substances. They include phytocells, algae extracts, stabilized vitamin C, exotic fruits (mango, papaya, avocado, guarana), essential oils and much more.
Pricing policy The company is aimed at a wide range of consumers, mainly in the middle price range. Belita-Vitex provides high quality products at a relatively low price. Product prices are presented in Appendix B. There are also funds aimed at the luxury segment with exclusive products. For example, the Q10 cosmetics line and several other items (Appendix A).
The final price of cosmetics depends on the distribution channel. It should be noted that the price in branded stores is lower than sales at non-specialized points of sale.
Sales policy (places of sales).
Belita-Vitex sells products on the territory of the Republic of Belarus through its own distribution network of branded stores and sections, its own trading houses, general distributors and dealers. Wholesale sales are carried out at manufacturer prices in your region. Products are available in many regions of Belarus. Recently, stores were opened in Mozyr, Zhlobin, Vileika and Molodechno.
Sales are carried out for the following objects: retail chain; hairdressing and beauty salons; business entities for their own use (consumption); retail sale of cosmetics through its own distribution network.
Communication policy (promotion).
As part of the Belita-Vitex marketing communications program, two elements of this complex are used, which have a decisive position in the complex of promoting the company's products in the target market: advertising and sales promotion. In the marketing mix, advertising is the most significant element in terms of the effectiveness of the impact on consumers of consumer goods, which include cosmetic products.
Belita-Vitex uses the following means of transmitting advertising information:
- · television;
- · popular magazines for women and men;
- · street media such as signs, billboards and advertisements on vehicles (buses and trucks).
Marketers of the Belita-Vitex joint venture work in two directions. The areas of activity of marketers are presented in Figure 2.1.
One group of specialists studies the products themselves. If a new product is introduced on the market, the availability of a similar range of products, their price parameters, quality characteristics, packaging design, etc. are determined.
Currently, the task of the marketing service is not only to find new markets, but also to maintain relationships with existing customers. After all, their loss costs the company much more than finding new ones.
After analyzing the product, pricing, sales and communication marketing policies in the national market, strengths and weaknesses were identified.
The strengths and weaknesses of the company's marketing in the national market are shown in Table 2.1.
Table 2.1 - Strengths and weaknesses of marketing of the Belita-Vitex joint venture in the national market
[Source - own development]
Indeed, the range, quality and prices for Belita-Vitex products are at a high level. As for the marketing activities of the enterprise, they are not sufficiently developed. The company rarely conducts marketing events and, as a result, is not in high enough demand. Regarding packaging design, there are collections with very uninteresting or outdated packaging.
Competition on the national market is not as strong as on the international market, but still there are quite a few cosmetic enterprises in the Republic of Belarus. Competitors of the national market are presented in table 2.2.
Table 2.2 - Competitors of the Belita-Vitex joint venture in the national market
|
Competitors |
Brief description |
|
Belarusian-American joint venture (JV) "Belor-Design" |
Cosmetic products are created based on natural ingredients, the latest trends in the fashion world and the achievements of modern cosmetology. |
|
Belarusian-Italian joint venture (JV) "Relui-Bel" |
Wide selection of original, high-quality decorative cosmetics. Works on Italian raw materials. |
|
PC LLC "Belkosmex" |
Creation of high-quality cosmetics, the concept of which involves the use of plant-derived components closest to human skin, as well as the latest developments from European laboratories in the field of biochemistry. |
|
Belarusian cosmetics company Exclusive Cosmetics LLC |
Cosmetics that combine all the advantages of modern cosmetics for skin and hair care. |
As can be seen from Table 2.2, the Belita-Vitex JV has many competitors producing high-quality products. However, today the company is a recognized leader in the production of cosmetics and hair care products, including a large range of professional products for hairdressing and beauty salons. JV "Belita" and CJSC "Vitex" provides enormous opportunities for choosing high-quality, environmentally friendly, safe and affordable cosmetics and perfumes.
For a more successful development of national markets, it would be advisable for a company to:
- 1. Work on packaging design and constantly improve. It is important for any company to keep up with the times and be aware of the latest trends and innovations.
- 2. Conduct promotions and product tastings.
- 3. Keep up with competitors, participate in all kinds of national exhibitions.
— Belita-M cosmetics are being developed by the Belita-Vitex scientific center. Please tell us who these people are who are working on new products and developments? How are new products created?
— Cosmetics of the Belita-M brand are developed in our own laboratory, this is done by development chemists who have the appropriate specialized education, as well as significant experience in working with cosmetics, gained both at ours and previously at other cosmetic enterprises. For a chemist, developing cosmetics is a constant search and a complex creative process. The creation of a new product begins with a concept that can be voiced for the first time at any level, in any department of the enterprise. We won’t surprise anyone if we admit that some ideas are the result of inspiration from products that have already been released in Western Europe. But in any case, adaptation to the characteristics of our market, our customer, is required. The idea is assessed by the marketing and sales department, where its potential is studied. If marketers predict a positive commercial effect from a new product, the laboratory begins to implement the plan: ingredients are selected, samples of raw materials are obtained, and manually, in small portions, many variants of a cosmetic product are born, one of which, after long tests, is destined to enter the market.
— Do Belita-M employees try the created new products on themselves?
- Yes, of course, product samples are tested first of all by our employees - directly by the developer. So the developer is personally interested in ensuring that the product is immediately successful and we can say with a light heart: “Not a single employee of the company was harmed in the process of creating cosmetics.”
— There is a global classification of cosmetics: mass market, middle market, selective cosmetics (luxury), professional cosmetics and medicinal. To what class can Belita-M cosmetics be classified and why?
— The range of products we produce is quite wide, and it contains products that can be classified into almost any of these classes (with the exception of medicinal cosmetics). But in general, the segment to which we currently classify ourselves is rather the middle market. We do not produce overtly cheap products that we expect to be swept off the shelves of hypermarkets. Our customer is a visitor to cosmetic stores or large specialized departments who has the opportunity to leisurely walk along the shelves, examine the product, read about its properties, and make a conscious purchase.
— Is it possible to say that, for example, Belita-M cream at a lower price is worse than Belita-M cream, which costs more? What's the difference besides the price?
- This is too simplistic an approach. The low cost of a product does not mean its low quality or lack of efficiency. Undoubtedly, the more the “components” cost - and this is not only the ingredients, but also the packaging - the more expensive the product becomes. But we should not forget about marketing techniques when, for example, a manufacturer sets a low price in order to lure a buyer away from a competitor or to occupy a certain niche in the market. “Desire obsolescence” may also occur when new series are released and the buyer changes an existing proven product only because of “fashionability” and interest. This has nothing to do with the quality of the product, but is reflected in its price.
— Can you say that Belita-M products are no worse than well-known foreign, more expensive brands and why?
— Although it is difficult, we will try to avoid subjectivity in the answer. The vast majority of cosmetics manufacturers purchase ingredients from the same suppliers of raw materials, that is, in principle, from one source. Ingredients can be cheaper or more expensive. It is up to the cosmetics manufacturer to determine which products it purchases and how it disposes of them. In this regard, we can confidently say that we buy the best raw materials, without looking at the price, if its effectiveness is convincing and confirmed by independent tests. Well, qualified and responsible specialists will do everything to transform it into a cosmetic product that is pleasant to look at and effective to use.
— You can often see beautiful names of ingredients on the label: black caviar, argan oil, liquid silk, etc. Not everyone can figure out what is actually in the product. Can you trust such attractive names?
— This question lists one very real cosmetic component - argan oil (by the way, which has a huge number of useful properties), one component in its simplified name - black caviar (in fact, black caviar extract), well, “liquid silk” is a fantasy a name representing a product that contains silk proteins. In general, in order to attract buyers, the manufacturer often tries to cross the boundaries of modesty and moderation. Fortunately, our customers are increasingly reading ingredients and are beginning to understand them well.
— What Belita-M products can you safely say: “no one has this”?
— The company’s range of cosmetics is extensive: numerous lines of hair, body, and face care products. But what distinguishes us from other manufacturers is that we are still the only producers of permanent hair dyes in Belarus. These are the “Bielita-Color” and “Hollywood color” series, as well as the ammonia-free “BOGEMA”.
— “Belita-M” has a fairly large assortment. How do you manage to maintain the quality of each product at such volumes?
— Increased attention is paid to the issue of quality: firstly, cosmetics are a product that can affect human health. Secondly, instability of quality is one of the main reasons for buyer “leaving”. Finally, the production of cosmetics, as an area affecting human health, is under the constant control of the Ministry of Health and the Gosstandart system.
— What dreams and goals does Belita-M have today?
— Our goal is to offer the best cosmetic products: high-quality, effective and safe, satisfying all the desires and needs of customers. We devote all our activities to one thing - beauty, with the help of which a person has the opportunity to express his individuality and gain self-confidence. All these tasks are a source of inspiration and creativity for our company.
Nowadays, the products of the Belarusian cosmetics industry are becoming increasingly popular. Belita, Vitex and Belkosmex are brands with a long history. The modern products of these manufacturers are attractive, useful and environmentally friendly. Here are the main advantages of Belarusian cosmetics, which allow us to talk about its high efficiency...
ENVIRONMENTAL FRIENDLY
Belkosmex, Belita, Vitex - these enterprises use only natural and high-quality ingredients to manufacture their own products. This rule forms the basis of all technological processes, which are carried out under constant strict control, ensuring compliance with the requirements of international quality standards. The absolute safety and usefulness of products is confirmed by mandatory certification of goods. That is why these companies, unlike many companies producing decorative cosmetics and body care cosmetics, have never encountered problems associated with harming or disrupting the ecological balance of the environment.
BEST VALUE FOR PRICE AND QUALITY
Low cost while maintaining the highest level of quality - this is what Belarusian cosmetics manufacturers focus on. The high level of well-established production and constant care for consumers are the reason for affordable prices for Belarusian cosmetics while maintaining a high level of quality. Even care products included in professional series (for example, active peeling serum) are quite inexpensive compared to foreign analogues on the cosmetics market.
MODERN TECHNOLOGIES
The companies Vitex and Belkosmex are known for the fact that they use only modern innovative technologies with the help of which a high effect is achieved from the use of their products. The modern research laboratory facilities that these enterprises have make it possible to apply the latest developments in the production of cosmetics, constantly improving products.
A COMPLETE LINE OF TOTAL BODY CARE PRODUCTS AND COSMETICS LINE
Cosmetologists have proven that all cosmetics that a person uses to improve and maintain their appearance must be made by the same manufacturer. This applies to creams, lotions, scrubs, masks, and other cosmetic products. This limitation is due to the fact that cosmetics from one company (for example, Belita) have a similar composition and texture. This ensures better absorption of nutrients, and as a result, maximum and lasting effect from the use of cosmetics.
The competitiveness of Belarusian cosmetics in the modern cosmetics market is justified by the presence of these undoubted advantages. Cosmetics produced in Belarus have been the market leader in skin and hair care products for many years due to compliance with high quality requirements, the use of innovative technologies and a constant focus on the consumer. A wide range of products from these companies allows each person to choose the cosmetics that suit him, meet his requirements and expectations.
The practice of transferring unprofitable collective farms to private industrial enterprises has paid off. The entrepreneurs turned out to be skilled business executives, the President admitted. The chairman of the board of JV Belita LLC, general director of CJSC Vitex, Viktor TERESHCHENKO, the head of an enterprise that managed to manage well the collective farm purchased according to Decree No. 138 of March 19, 2004, told EG about his agricultural experience. SEC "Teplen" of the Uzdensky district of the Minsk region is now called the agricultural branch of JSC "Viteks".
Tereshchenko Viktor Alekseevich. In 1962 he graduated from the Kharkov Polytechnic Institute named after. V. I. Lenin, majoring in “Mechanical Engineering Technology, Metal-Cutting Machine Tools and Tools.”
He worked as a senior engineer at the Minsk Radiodetal plant, head of the MKTEI department of the automobile industry, director of the Minsk Experimental Mechanical Plant of the Ministry of Consumer Affairs of the BSSR, then head of the technical department of the Ministry of Consumer Services of the BSSR. Since 1988, he has headed Vitex CJSC.
Has state awards. In June of this year he was awarded a Certificate of Honor from the Council of Ministers of the Republic of Belarus. As a member of the BSPN named after. Kunyavsky was awarded the Diploma of the Business Union for the original inclusion of agricultural production into industrial production.
Viktor Alekseevich, please tell us about your acquisition and the metamorphoses that occurred with it.
“The collective farm that we inherited was, by all indicators, the most backward in the region. He had Br 1.5 billion in debts, which, in accordance with the decree, we had to repay.
The main direction of the economy was commodity dairy production and crop production. The grain yield before the buyout was 13 c/ha, milk yield per cow per year was 1180 liters.
We have maintained the specialization of the farm, but the indicators have changed dramatically. Already last year we had the best yield in the region - 32.4 c/ha. This is despite the fact that our lands are some of the worst in the region. In terms of milk yield, we also took first place in the region and rose above the regional average - they increased five times, to 5,400 liters.
- Where did the new owner start? What is the recipe for success?
“At first we did the minimum so that we could support the livestock - we repaired the farms. We continue to reconstruct them now, at a higher level - we are introducing German milking equipment, which should significantly increase labor productivity. We are planning to create a mini-factory for milk processing so that we do not sell raw materials, but the finished product.
Then they renewed the vehicle fleet - almost all of the equipment was subject to write-off. The workshops were renovated and new production areas for storage were built. We joined the state gardening program. We developed a project and planted 15 hectares of garden last year. In total, we are going to allocate 60 hectares for the garden. When our garden grows, we plan to organize apple processing. We started beekeeping: we have 150 bee families.
We pay a lot of attention to the selection of specialists. I had to do a lot of work with the team to change the attitude towards work. After all, even higher pay cannot immediately change psychology. We try to create good working conditions and increase financial incentives. Good milkmaids receive 700-800 thousand Br from us, while previously 100-150 thousand Br. A dormitory was built for young professionals, and 9 individual houses for family employees. The dining room, which previously was practically locked, was brought into good condition. It provides lunches not only to agricultural workers, but also to workers of Vitex and Belita.
-Are you really that interested in farming?
— Initially, we had no great desire to acquire this collective farm. We are not experts in agriculture. However, we were seriously campaigned at the city, district and even republic level. And we took a risk. First, we corrected the main economic indicators, and then we began to think about how we could do this so that it would be “in unison” with our main production. The idea of beekeeping did not appear by chance. Honey is included in the recipes of many cosmetic products that we produce.
Next year we plan to commission a workshop for the production of herbal extracts, which we also use in our production. For now, we purchase these raw materials in Russia, the Baltic countries, and other countries. In the future, we plan to not only “fill” our needs, but also, perhaps, even sell extracts. Nobody makes these products here, but about 40 enterprises deal with cosmetics. Although even if you produce them only for yourself, it will already be profitable.
We also plan to grow and make teas. In 2008, we would like to launch the production of containers and packaging for cosmetics.
To organize jobs for people who cannot work in field work or livestock farming, we opened a small sewing production in the village: they sew cosmetic bags for packaging our cosmetics. Even though at the beginning it seemed that cosmetics and agriculture were far from each other, we managed to find common ground.
- In general, will you end up with something like an agricultural town?
— Well, yes, but we are not included in the rural development program. Today our local leaders are already saying that it would be nice to include us too, because we look better than other agricultural towns. I believe that in an agricultural town, first of all, the economy should work. If you just clean it and paint it, nothing will work.
It is clear that serious investments are needed to achieve results. This begs the main “economic” question: how much does all this cost and how quickly can you get a return on your investment?
— So far we have invested 8 billion Br in the development of the economy. We are already receiving returns on certain types. For example, the production of milk and meat is profitable in our country.
Truly profitable farms are those with a processing industry. Due to this, the farms are profitable, and even very profitable. There, less efficient production is covered by more profitable ones, and overall things turn out well. That’s why we are now setting a course to develop our industry. If you work only as a source of raw materials, then, of course, you will never earn money in agriculture.
Interviewed by Inessa GERMANCHUK
