A CASE STUDY ON STRATEGY
Yandex Resist Google's World Domination
Search Market In Russia
                          Top 5 Players By Reach
             62.4%

                        51.0%...
Yandex Revenue Growth (in $M)

                                                167




                                   ...
Yandex Key Milestones

          Developed                    2003 : Yandex               2006 : Launches


              ...
Key Consumer Insight
                   Moscow's Daily Traffic Jam (Spring 2006 to Spring 2007)
Traffic Pressure




     ...
Key Consumer Insight

  Every day Moscow faced about 650 traffic jams,
  each traffic jam stopped 1,500 cars. The average
...
Search Distribution
Yandex Toolbar & Desktop Tools Around The Functional Utility




                                     ...
Fierce Battle Of Outdoor Ads
                                    Google Russia : Moscow 2.0
                              ...
Compete & Collaborate
• Jan ‘08 : Strategic partnership between
  Mail.Ru & Yandex in search technologies &
  contextual a...
Search Landscape Today..
             Yandex + Mail.ru shines & trouble time for Rambler
 70%

 60%

 50%

 40%

 30%

 20...
Identity Makeover..
           . . . Logo Changes


1996



1997



1999
                   The new logo displays the Yand...
“We have better technology & understanding of the market. I take the competition
seriously & every day check the latest fi...
Insights For Global Marketers ..
• Identify one everyday problems in a country &
  develop a functional utility (eg : Mosc...
www.trendsspotting.com
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A Case Study on Strategy :Yandex Resist Google's World Domination

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Yandex is Russia's No 1 search engine.Other than its excellent search ,the local understanding & marketing strategy around it has made it invincible.Global giants like Google always found it a tough nut to crack , at the same time all their efforts to gain Russian market share creates this interesting case study on strategy.

Feel free to blog your thoughts on this.Incase you need a copy of this presentation , drop us a note, we shall be happy to mail you the same.

Happy Trendsspotting.

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  • Google still dominates.

    zunita http://ringtones-x.com/ | www.freeringtonesforatt.org/
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  • Thanks Lumiknows for the insight .
    Dannye - what you may have missed out here is its 'Yandex+mail.ru' vs 'Google+Rambler'.Since Ramblers market share declined to 8-9% (as much of that of mail.ru) ,the one benefited most is 'Yandex+Mail.Ru' or overall Yandex market share
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  • Surely the simple out-take on that slide is that Yandex has lost 5 points share while Google has gained 5 in just one year. Pretty straightforward, a bad year for Yandex. Also, that 5 point gain is since Google actually bothered opening an office in Moscow. Even now the organisation is not strong - it's almost impossible to do business with them, but even with their limited staffing and resources they are quickly taking market share from Yandex. It will continue.
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  • I like the presentation. But being Russian I would like to add two comment on the difference between the two search engines.



    Firstly, Yandex and Google are perceived very different in Russia. There is an opinion which is quite difficult to clearly articulate that Google is for 'westernized' Russians, for Russians who are more 'advanced', even probably more educated. Yandex is for very middle class Russians I would say... In this sense, Yandex does a good job of satisfying their day-to-day needs.



    The other issue is that Yandex very-very slow in updating, it is clumsy and sluggish. We update our website on a weekly base and Google reacts immediately. What is more important for small companies like ours is that we really do not need to hire special folks to optimize our resourse for Google searching. With Yandex the situation is very different. You need permanently to pay somebody to promote your resource in Yandex, it updates information very slowely and it takes up to three months until it 'sees' you. I find it awfully inconvenient.

    I believe in Google.
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  • Yandex is Russia's No 1 search engine.Other than its excellent search ,the local understanding & marketing strategy around it has made it invincible.Global giants like Google always found it a tough nut to crack , at the same time all their efforts to gain Russian market share creates this interesting case study on strategy.

    Feel free to blog your thoughts on this.Incase you need a copy of this presentation , drop us a note, we shall be happy to mail you the same.

    Happy Trendsspotting.
       Reply 
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    Your message goes here
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A Case Study on Strategy :Yandex Resist Google's World Domination

  1. 1. A CASE STUDY ON STRATEGY Yandex Resist Google's World Domination
  2. 2. Search Market In Russia Top 5 Players By Reach 62.4% 51.0% 49.1% 42.4% 40.5% Yandex Mail.Ru Rambler AOL Google Source : Comscore
  3. 3. Yandex Revenue Growth (in $M) 167 73 35 18 8 2003 2004 2005 2006 2007 Source : Company Info
  4. 4. Yandex Key Milestones Developed 2003 : Yandex 2006 : Launches 2000-05 90’s 2006-08 Yandex breaks even free, online, technology 2004 : Adopts real-time traffic 1997 : Yandex.ru ‘Clean Mail’ monitoring for website concept — email Moscow 1998 : free of spam 2007 : Yandex Iintroduces Local Network contextual Ads Program Source : Company Info
  5. 5. Key Consumer Insight Moscow's Daily Traffic Jam (Spring 2006 to Spring 2007) Traffic Pressure Summer Winter Source : Company Info
  6. 6. Key Consumer Insight Every day Moscow faced about 650 traffic jams, each traffic jam stopped 1,500 cars. The average traffic jam duration was 1 hour & 8 minutes. Within one month of the past year drivers would waste in traffic jams more than 11 hours, which totals to 1.5 working day. Source : Company Info
  7. 7. Search Distribution Yandex Toolbar & Desktop Tools Around The Functional Utility ‘Smart application ‘ on Jam Indicator- updated every 5 min
  8. 8. Fierce Battle Of Outdoor Ads Google Russia : Moscow 2.0 Embed city images & videos onto a virtual Moscow map. Budget : $ 250 K / Month VS Yandex : Traffic 2.0 GPS based UGC traffic congestion monitoring service . Budget : $ 150 K estimated
  9. 9. Compete & Collaborate • Jan ‘08 : Strategic partnership between Mail.Ru & Yandex in search technologies & contextual advertising. • June ‘08 : Yandex buys Smilink , Russian road traffic monitoring agency. • July ‘08 : Google ties up with Rambler to power the search. • July ‘08 : Google buys contextual ad firm begun.
  10. 10. Search Landscape Today.. Yandex + Mail.ru shines & trouble time for Rambler 70% 60% 50% 40% 30% 20% 10% 0% Source : LiveInternet Yandex Google Rambler Mail.ru
  11. 11. Identity Makeover.. . . . Logo Changes 1996 1997 1999 The new logo displays the Yandex name in Cyrillic , to reflect that Yandex has become a 2004 household name in Russia.
  12. 12. “We have better technology & understanding of the market. I take the competition seriously & every day check the latest figures to see where it is, but I think we will stay far ahead. What was enough for Google to conquer other markets isn’t enough in Russia.” Arkady Volozh , Co founder & Chief Executive of Yandex quot;Yandex concentrated on search & developed a really good engine“. Vladimir Dolgov, Head of Google Russia
  13. 13. Insights For Global Marketers .. • Identify one everyday problems in a country & develop a functional utility (eg : Moscow street traffic) • Concentrate all your marketing efforts around that ‘functional utility’. • Focus on distribution challenges. Identify your local partners carefully . Collaborate & compete at the same time.
  14. 14. www.trendsspotting.com

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