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Regular version of the site

Working paper

«Izbenka»: what if less is more?

Marketing. Case Ref. no 514-072-1. The Case Center, 2014
Izbenka1 is the largest fresh diary retail chain in Moscow region. It was created in 2009 by entrepreneur Andrey Krivenko. From the very beginning it was changing the retail market rules by keeping lowest marketing and advertising budgets, renting retail facilities and transport outsourcing. By 2012 Izbenka accounted for 110 small stores (5-10 m2) in Moscow and nearest suburbs. Each of those stores yielded about 1 mln roubles in monthly sales revenue. Relatively low opening costs allowed Andrey to open stores quickly and close on the fly those that did not grow as planned. In most cases the store’s potential performance was clear during the first weeks. Since its opening in 2009 till 2014 Izbenka’s team started 400 stores, one third of which were closed soon after the opening due to low profitability. Izbenka’s small diary stores are located in shopping centres and supermarkets, for example in OKAY and Billa, small trade pavilions near the subway stations and butcher stores. Izbenka stores are white plastic kiosks with green banners. In the beginning the typical size of Izbenka was 5-10 m2 and in two years period the typical size increased to 15-20 m2 in order to accommodate the increased assortment. Product suppliers are small and medium sized producers from nearby regions. Izbenka company monitors the suppliers on regular basis, through incoming quality check and custom defect management system.