Your SlideShare is downloading. ×
  • Like
globeone BRIC Branding Survey - Russia Edition
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

globeone BRIC Branding Survey - Russia Edition

  • 293 views
Published

Over 90% of urban consumers in Russia know a multitude of German brands and show a strong preference for them. German brands are liked among all three social classes represented in the survey – …

Over 90% of urban consumers in Russia know a multitude of German brands and show a strong preference for them. German brands are liked among all three social classes represented in the survey – emerging middle class, middle class and upper middle class. It is interesting to point out that German brands are most strongly favored by 94% of the emerging middle class with gross monthly income of RUB 12,000-36,000 (EUR 290-880). This indicates an immense potential for German products and services among the growing urban population in Russia.

In total, 1,000 Russian consumers from Moscow, St. Petersburg, Yekaterinburg,
Novosibirsk and Nizhny Novgorod have been interviewed. The Russia results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.

Published in Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
293
On SlideShare
0
From Embeds
0
Number of Embeds
3

Actions

Shares
Downloads
9
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul © Copyright This document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements. BRIC Branding® Survey – Russia Edition The Perception of German Brands in Russia – Strengths, Weaknesses and Opportunities June 2012
  • 2. 2 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 3. 3 Key findings – Germany’s image in Russia Source: globeone COUNTRY-OF-ORIGIN IMAGE OF VERY HIGH IMPORTANCE IN RUSSIA 90% of Russian consumers and B-to-B buyers consider the Country-of-Origin Image (COO-Image) to be of central importance in the purchase decision process. EXTREMELY POSITIVE ATTITUDE TOWARDS GERMAN BRANDS An overwhelming majority of Russians (88%) show positive attitude towards German brands. This is the highest figure compared to other BRIC countries that were surveyed. GERMAN BRANDS LEADING IN ALMOST ALL DIMENSIONS German brands lead the ranking in 12 out of 15 categories of values associated with their performance. This perception is especially distinctive in such categories as excellent quality, high performance, good reliability and trustworthiness. SHORTCOMINGS IN SOPHISTICATION German brands show some shortcomings in “sophistication” as they are not perceived as being very fashionable or exciting, nor geared to local tastes. France and Japan outperform Germany in this category. Japan also scores slightly higher than Germany in terms of “innovativeness & high-tech”. SOME BARRIERS TO ENTER THE RUSSIAN MASS MARKET Most German brands have a strong premium image and score high on the prestige scale. Therefore, many brands are also perceived as being expensive. Limited affordability of German products because of relatively low income level may pose barriers to German products gaining a significant share in the Russian market. Germany’s image in Russia – Key findings (1/2)
  • 4. 4 Key findings – Leading German brands in Russia Source: globeone GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIES German brands are most famous for automobiles (94%), home appliances (86%) and pharmaceuticals (44%). 7 out of 12 brands that urban Russians remember spontaneously belong to the above-named sectors. MERCEDES-BENZ, BMW AND AUDI ARE THE BEST KNOWN GERMAN BRANDS IN RUSSIA An overwhelming majority of the Russian population is aware of numerous German brands. Brands of three German car manufacturers – Mercedes-Benz, BMW, and Audi – take the leading position with 99% aided awareness. BMW IS THE BEST-LIKED GERMAN BRAND IN RUSSIA German automotive brands – BMW (95%), Mercedes-Benz (94%), and Volkswagen (92%) – enjoy the highest ranking on the positive attitude scale, followed by Audi (91%) and sportswear multinational Puma (91%). NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN RUSSIA The most frequently purchased/used German brand in Russia is Nivea (68%) followed by Adidas (62%) and Braun (61%). Only 6 brands out of 45 represented in the survey enjoy 50% and over purchase/usage rate. There is potential for German brands to secure a larger market share in the Russian market. INTERNET IS THE MOST POPULAR INFORMATION SOURCE TO LEARN ABOUT FOREIGN BRANDS The Internetserves as a leading source for Russian consumers to find information about German brands being used by 29%. Other important sources include shopping centers (19%), TV (19%), and personal recommendations by family or friends (17%). Germany’s image in Russia – Key findings (2/2)
  • 5. 5 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 6. 6 Global network with strong focus on fast growth markets Mumbai Office Cologne Head Office São Paulo Office Singapore Office Beijing Office Shanghai Office globeone is a business consultancy with a strong representation in the world’s fast growth markets We offer specialized marketing strategy consulting & project management services to help drive clients’ success in the world’s key growth regions About globeone (1/2) Seoul Office
  • 7. 7 Marketing & communication strategy consulting to drive clients’ success in BRIC ExecutionStrategysupport Consumer & strategic market insights 1 Quantitative market research design (e.g. market potential, segmentation) Customer insight generation & market trend studies Competitor analysis & benchmarking Qualitative market research (e.g. online user experience, focus groups) 2 Optimized positioning & planning Brand architecture & brand portfolio strategies Definition of goals and KPIs & related strategy development Brand and product (re-) positioning & value proposition development Business case & market entry program development 3 Support of 360° fulfillment Employer brand development & program implementation Hands-on project management & creation of professional presentations Creation of 360°integrated activity planning Creation of briefings & steering of specialized agencies (e.g. pitch support) 4 Brand performance & loyalty Marketing spending effectiveness (e.g. correlation of investment and sales) Brand performance analysis & controlling (e.g. brand monitor surveys) CRM audit & CRM strategy development Set-up of activities & programs to enhance brand loyalty Global Strategy + Local Adjustment = Success in BRIC – Typical globeone project examples for major global clients (selection) – About globeone (2/2)
  • 8. 8 • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 9. 9 Countries/Cities: Brazil Russia India China São Paulo Moscow Mumbai Shanghai Rio de Janeiro St. Petersburg New Delhi Beijing Porto Alegre Novosibirsk Bangalore Guangzhou Recife Yekaterinburg Chennai Chengdu Brasília Nizhny Novgorod Pune Wuhan Objectives: • Identification of Country-of-origin Image (COO-Image) relevance in BRIC • Assessment of perception of German brands amongst urban citizens • Strengths & weaknesses of German brands and strategic implications Method/Timing1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone and face-to-face interviews: n ≈ 4,000 • Field work conducted: 2011 Over 4,000 interviews in 20 of the most important BRIC cities to analyze the perception of German brands Survey approach – Objectives and scope Source: globeone German brands 1) Representative survey based on research conducted by a certified market research agency in each country.
  • 10. 10 Cities: Objectives: • Assessment of perception of German brands among Russian urban citizens • Analysis of Russia-specific strengths, weaknesses and opportunities • Guiding successful brand management in Russia Method/Timing1: • Inclusion of major German brands • Computer-assisted telephone interviews: n = 1,000 for Russia • Selection of cities to achieve a good representation of urban Russia For the Russia edition, 1,000 interviews were conducted in 5 key Russian cities Survey approach – Objectives and scope Source: globeone Yekaterinburg NovosibirskMoscow St. Petersburg Nizhny Novgorod 1) Representative survey based on research conducted by a certified market research agency in Russia. The city sample was selected in order to achieve a good representation in key Russian regions. German brands
  • 11. 11 COO – Definition “Country-of-origin is defined as the country where corporate headquarters of the company marketing the product or brand are located. This does not require local manufacturing.” 2 “Consumers and customers associate positive or negative attributes with a company, product or brand, if they know it originates from a certain country.“ 3 “Country-of-origin effect is one of the most analyzed phenomena in consumer behavior in international markets.“ 1 COO – High interest eST Survey approach – Country-of-origin definition Country-of-origin (COO) as a key factor for purchase decisions in Russia Source: globeone Sources: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.
  • 12. 12 Survey approach – Country-of-origin in Russia COO-Image – Important success factor in Russia Urban consumers in the Russian market are particularly sensitive related to the COO-Image resulting from • Social mobility: Local consumers’ demand for prestigious brands to highlight their social progress • Novelty: Lower availability and higher novelty of foreign brands also boost their image • Limited trust: lower level of quality and marketing competence of local brands in most emerging markets Russia-specific relevance of a positive COO-Image A positive COO-Image can: • Increase perceived quality and prestige of a brand • Promote consumers’ purchase intentions in favor of a brand Potential for increasing brand performance depending on respective industry and product category General relevance of a positive COO-Image– Perception of a brand’s corresponding country-of-origin – ! Source: globeone
  • 13. 13 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 14. 14 COO-Image important for purchase decision – confirmed by 90% of Russian respondents Germany’s image in Russia – Importance of COO-Image Source: globeone – Importance of COO-Image – Sample size in Russia: 1,000. Q.: How important is the country-of-origin of a brand to you when you purchase a product or service? 0% 0% 10% 29% 61% 0% 10% 20% 30% 40% 50% 60% 70% Not at all important Not important Does not really matter Relatively important Very important
  • 15. 15 COO-Image is most important for Russians C Germany’s image in Russia – Importance of COO-Image Source: globeone Not important at all Not important Does not really matter Very important Relatively important 10% 20% 36% 29% 5%4% 31% 38% 19% 8% 1% 14% 47% 25% 13% 0% 0% 61% 29% 10% Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China) Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?
  • 16. 16 • Overwhelming majority have positive attitude towards German brands • Only a miniscule fraction (1%) that does not like German brands • Excellent opportunities for effective positioning utilizing country-of- origin potential German image as an asset – 88% of the Russian urban population confirm positive image of German brands Q.: Do you like German brands, products or services? – General attitude towards German brands in Russia – Source: globeone Sample size in Russia: 1,000 88% associate positive image ! 1% 0% 11% 43% 45% 0% 10% 20% 30% 40% 50% I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much Germany’s image in Russia – General attitude towards German brands
  • 17. 17 Best results for positive perception of German brands in Russia compared to other BRIC countries Germany’s image in Russia – General attitude towards German brands Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China)Q.: Do you like German brands, products or services? Source: globeone 42% 9% 38% 47% 5% 1% 22% 59% 13% 5% 1% 45% 43% 11% 0% 1% 16% 33% 7% 2% I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much
  • 18. 18 German brands enjoy consistently high reputation across all income classes Germany’s image in Russia – Income-class-specific attitude towards German brands Source: globeone I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much – Liking of German brands across social classes (according to gross monthly income) – – Middle class – (€ 880-1,960; RUB 36,000-80,000) – Upper middle class – (> € 1,960; > RUB 80,000) – Emerging middle class – (€ 290-880; RUB 12,000-36,000) 1% 40% 14% 44% 84% associate positive image 17% 17% 67% 84% associate positive image 0% 1% 49% 5% 45% 94% associate positive image 0% 0% 0% Q.: Do you like German brands, products or services? Exchange rate: 1 € = RUB 40.83 (June 2012)
  • 19. 19 German brands most strongly associated with quality, reliability and performance Germany’s image in Russia – Perception of brand and product attributes (1/2) Source: globeone – Perception of brand and product attributes based on respective country of origin – Excellent quality Good reliability High durability High performance Outstanding design High prestige Sophisticated 0% 20% 40% 60% 80% Germany US Japan China France Russia Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
  • 20. 20 German brands not seen as fashionable or exciting, but they score high on trustworthiness and service Germany’s image in Russia – Perception of brand and product attributes (2/2) Source: globeone – Perception of brand and product attributes based on respective country-of-origin – Innovative & high-tech Fashionable & exciting Close to local customer needs Good after-sales service Good value for money Trustworthy Good corporate citizenship Protecting environment & climate 0% 20% 40% 60% 80% Germany US Japan China France Russia Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
  • 21. 21 German brands enjoy the best reputation in Russia based on 15 performance indicators Germany’s image in Russia – Country-of-origin image strength index Source: globeone – Country-of-origin image strength index – (average scores of 15 relevant brand & product attribute dimensions) 10% 13% 30% 38% 52% 64% 0% 10% 20% 30% 40% 50% 60% 70% Russia China France US Japan Germany Sample size in Russia: 1,000
  • 22. 22 • German brands are mostly seen as relatively and very expensive reflecting their focus on the premium segment • Large potential to target emerging middle class with more locally adjusted product portfolio and pricing strategies – Price perception of German brands in Russia – Source: globeone 1% 0% 26% 56% 17% Very cheap Relatively cheap Very expensive Relatively expensive Similar to other countries` brands Germany’s image in Russia – Price perception Q.: What do you think about German brands in terms of price? Sample size in Russia: 1,000 73% of interviewees in Russia consider German brands to be relatively or very expensive
  • 23. 23 • Such industries as automotive and home appliances lead the ranking • Eco-friendly technologies are not yet strongly associated with Germany • German brands are weakly associated with services Source: globeone Germany’s image in Russia – Top industries with German association Q.: What categories do you think German brands are famous for? Sample size in Russia: 1,000 – Industries/product categories most commonly associated with German brands – 3% 8% 9% 14% 15% 19% 21% 39% 44% 86% 94% 0% 20% 40% 60% 80% 100% Services (insurance etc) Detergents Eco friendly technology Football Cosmetics / Perfume Food Clothing / Fashion Machinery Pharmaceuticals / Medicine Home appliances Automobile / Motorcycles Urban Russians associate Germany mostly with cars, home appliances, pharmaceuticals and machinery
  • 24. 24 Overwhelming majority of the Russian respondents showed high awareness of German brands – Unaided awareness for German brands in India (top 11) – Source: globeone 93% 7% 0% 20% 40% 60% 80% 100% Can recall a German brand Can't recall a German brand 6% 6% 7% 13% 13% 16% 29% 37% 39% 42% 57% 58% 0% 10% 20% 30% 40% 50% 60% Hugo Boss Puma Metro Cash & Carry Nivea Braun Adidas Bosch Audi Siemens BMW Volkswagen Mercedes-Benz – Unaided awareness for German brands in Russia (top 12) – Germany’s image in Russia – Unaided awareness Q.: Which German brands do you know ? Please name as many as come to your mind spontaneously. Sample size in Russia: 1,000
  • 25. 25 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 26. 26 • German car manufacturers lead the top 12 ranking • Mercedes-Benz, BMW, and Audi (99%) are the best- known German brands • Siemens (95%) is the only non- automotive brand on the top 5 list • Metro Cash & Carry (74%) is the only B-to-B brand on the top 12 list Source: globeone Leading German brands – Aided awareness (1/2) Q.: I will read you a list of German brands. Which brands do you know? Top 12 – Car manufacturers are at the top of the best- known German brands ranking with 99% awareness (987) (994) (993) (970) (964) (960) (916) (880) (744) (743) (799) (717) 0% 20% 40% 60% 80% 100% Mercedes-Benz BMW Audi Volkswagen Siemens Bosch Braun Nivea Adidas Metro Cash & Carry Puma Hugo Boss 99% 99% 99% 97% 96% 96% 92% 88% 80% 74% 74% 72% – Aided brand awareness in Russia (top 12) – Sample size in Russia: 1,000
  • 27. 27 • Deutsche Bank (71%) is the leading financial services brand • Auto parts manufacturer Continental shows high awareness of 63% • MINI (48%) has a significantly lower awareness compared to other leading car brands • Industry leader Thyssen Krupp holds the 30th place Source: globeone Leading German brands – Aided awareness (2/2) Q.: I will read you a list of German brands. Which brands do you know? Rank 13 - 30 – Service and car companies enjoy higher awareness than consumer goods – Aided brand awareness in Russia (rank 13 to 30) – (714) (707) (706) (700) (680) (642) (636) (629) (593) (581) (575) (554) (543) (512) (478) (442) (423) (422) 0% 20% 40% 60% 80% 100% 71%Deutsche Bank Thyssen Krupp Becks Boehringer-Ingelheim MINI Carl Zeiss MAN Miele AEG DHL Deutsche Telekom Continental Skoda Porsche Bayer Grundig Lufthansa 71% 71% 70% 68% 64% 63% 59% 58% 58% 55% 54% 51% 48% 44% 42% 42% 64%Henkel Sample size in Russia: 1,000
  • 28. 28 • BMW (95%), Mercedes-Benz (94%) and Volkswagen (92%) hit the top 3 list • Hugo Boss (91%) is the only fashion clothing brand among the top 12 • Nivea (86%) is the only skin- and body care brand on the top 12 list • METRO extremely well perceived in Russia with its Cash & Carry wholesale formats Source: globeone Leading German brands – Positive image (1/2) Q.: Do you like this brand in general? Top 12 – Automotive industry tops the ranking – BMW, Mercedes-Benz and Volkswagen as best liked brands – Positive attitude towards German brands in Russia (top 12)¹ – (943) (938) (891) (896) (674) (649) (669) (696) (829) (758) (585) (805) 0% 20% 40% 60% 80% 100% BMW Mercedes-Benz Volkswagen Audi Puma Hugo Boss Metro Cash & Carry Adidas Bosch Nivea Porsche 95% 94% 92% 91% 91% 91% 90% 87% 86% 86% 86% 84%Siemens 1 Based on number of interviewees who know the brand
  • 29. 29 • Bayer (83%) demonstrates the highest score on the positive image scale in the pharmaceuticals industry • DHL (77%) is in the upper third part of the ranking • DAX 30 listed SAP (69%) ranks last in the top 30 ranking Source: globeone Leading German brands – Positive image (2/2) Q.: Do you like this brand in general? Rank 13 - 30 – Bayer as best liked German pharmaceuticals brand – Positive attitude towards German brands in Russia (rank 13 to 30)¹ – (760) (580) (525) (315) (523) (323) (450) (285) (235) (412) (392) (368) (320) (447) (391) (236) (289) (181) 0% 20% 40% 60% 80% 100% Bayer 83% Henkel 83% Osram 82% Skoda 81% Dr. Oetker 80% DHL 77% Haribo 75% BASF 75% AEG 72% MAN 72% Carl Zeiss 72% Boehringer-Ingelheim 72% Continental 71% Miele 71% Paulaner 69% SAP 69% Leica 70% Braun 83% 1 Based on number of interviewees who know the brand
  • 30. 30 • Deutsche Bank and Deutsche Telekom lead ranking due to adjective ‘Deutsche’ in the brand name • 4 leading car brands are among top 7 • Bosch and Siemens, world’s largest electronics and engineering companies, are also on the top 12 list • Volkswagen using its “Das Auto” slogan scores 96% Source: globeone Leading German brands – Recognition of German brand origin (1/2) Q.: Do you think this brand is originally from Germany or not? Top 12 – German brands showing high recognition of “German origin” with major car manufacturers in top 7 – Recognition of German brand origin in Russia (top 12)¹ – (709) (589) (966) (964) (960) (683) (934) (194) (889) (153) (883) (389) 99% 99% 97% 97% 97% 96% 97% 95% 93% 93% 92% 92% Deutsche Bank 0% 20% 40% 60% 80% 100% Deutsche Telekom Mercedes-Benz BMW Audi Lufthansa Volkswagen Zwilling Bosch Hansgrohe Siemens Thyssen Krupp 1 Based on number of interviewees who know the brand
  • 31. 31 • German-sounding brands like Carl Zeiss and Henkel have a high recognition rate • Competitors Becks (83%) and Paulaner (82%) enjoy high recognition scores • LANXESS specialty chemicals group also demonstrates a high recognition rate of 84% despite its non-German- sounding name Source: globeone Leading German brands – Recognition of German brand origin (2/2) Q.: Do you think this brand is originally from Germany or not? Rank 13 - 30 – German-sounding brands scoring high on the origin recognition scale – Recognition of German brand origin in Russia (rank 13 to 30)¹ – (462) (625) (483) (802) (274) (695) (72) (618) (549) (380) (627) (486) (112) (350) (340) (712) (141) (502) 90% 89% 89% 88% 88% 87% 87% 86% 86% 86% 84% 84% 84% 83% 82% 81% 81% 80% Carl Zeiss 0% 20% 40% 60% 80% 100% Bayer MAN Braun BASF Adidas Bertelsmann Hugo Boss Henkel Boehringer Ingelheim Puma DHL LANXESS Becks Paulaner Linde Continental Nivea 1 Based on number of interviewees who know the brand
  • 32. 32 • Top 12 mainly consists of B-to-C brands led by Nivea (56%) and Adidas (62%) • Adidas bought/ used by 62% of the interviewees outperforms its main competitor Puma (47%) • Metro Cash & Carry enjoys a healthy 50% purchase rate among urban citizens Source: globeone Leading German brands – Purchase/usage (1/2) Q.: Which German brands have you bought or which services have you used? Top 12 – Leading brands with high purchase/usage rate with Nivea at the top of the ranking – Purchase/usage of German brands in Russia (top 12) – (676) (619) (605) (542) (529) (503) (471) (466) (404) (336) (282) (266) 68% 62% 61% 54% 53% 47% 50% Nivea 0% 20% 40% 60% 80% 100% Adidas Braun Siemens Bosch Metro Cash & Carry Puma Hugo Boss Henkel Dr. Oetker Becks 40% 34% 28% 27% Bayer 47% Sample size in Russia: 1,000
  • 33. 33 • Volkswagen (16%) scores highest among the German automobile producers on the purchase rate • Lufthansa, German flagship carrier and one of the leading airlines in Europe, with currently 10% usage rate Source: globeone Leading German brands – Purchase/usage (2/2) Q.: Which German brands have you bought or which services have you used? Rank 13 - 30 – Many well-known German brands with significantly low market penetration level – Purchase/usage of German brands in Russia (rank 13 to 30) – Sample size in Russia: 1,000 25% 25% 25% 24% 24% 24% 19% 19% 18% 17% 16% 16% 14% 14% 13% Osram Continental Paulaner Boehringer-Ingelheim Grundig Haribo Lufthansa Carl Zeiss BASF Miele DHL Volkswagen Audi Zwilling AEG Hansgrohe Mercedes-Benz (251) (247) (247) (240) (235) (235) (191) (189) (181) (173) (158) (155) (143) (139) (126) (87) (82) SAP (89) 0% 20% 40% 60% 80% 100% 9% 9% 8%
  • 34. 34 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 35. 35 Internet as the most popular information source to learn about foreign brands Insights into information channels – Key sources (1/2) 0% 10% 20% 30% Shopping center / Store Internet1 TV Family / Friends Events / Tradeshows Radio 29% 19% 17% 7% 5% 5% 19% Newspapers / Magazines – Information sources to find out/ learn more about foreign brands in Russia– Source: globeone Sample size in Russia: 1,000. 1 Category Internet includes Internet search engines, social media and corporate website research. Q.: How do you generally find out/learn more about foreign brands?
  • 36. 36 Within digital communication, internet search engines and corporate websites are most relevant Insights into information channels – Key sources (2/2) – Information sources to find out/ learn more about foreign brands in Russia– 0% 10% 20% 30% Internet search engines TV Shopping center / Store Family / Friends Events / Tradeshows Radio Social media 19% 5% 5% 5% 19% Newspapers / Magazines Corporate website 21% 17% 3% 7% Q.: How do you generally find out/learn more about foreign brands? Sample size in Russia: 1,000 Source: globeone
  • 37. 37 • Executive Summary • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 38. 38 Strategies for Russia – Leveraging maximum brand potential to grow sales (1/3) Success in Russia requires dedicated action and a clear strategic roadmap (→ ‘one world strategy’1) Strategic implications for corporations: 1:1 transfer of ‘developed market’ strategies is rarely successful Almost continental complexity of Russia as key challenge for annual strategy development and alignment of local organizations Fact-based adjustments regarding strategic focus, relevant target groups and brand strategy necessary Different levels of brand performance require a differentiated approach 1 A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/customer needs in BRIC at the very center of corporate strategy. - Brand performance analysis - Improving business performance in Russia through effective communication strategies Source: globeone
  • 39. 39 Strategies for Russia – Leveraging maximum brand potential to grow sales (2/3) Corporation with low brand awareness and thus low general brand performance across all major dimensions in Russia - Key challenges - • Lack of fact-based ‘one-world-strategy’ for Russia • Inability to bridge gap between HQ and country marketing / COM teams • Unclear definition of market-driven strategy and local target groups and needs • Ineffective activation strategy & media investment to communicate above ‘perception threshold’ • Ineffective utilization of media vehicles / insufficient media investment 25% 50% 75% 100% 0% Corporation with high awareness but weak image as compared to Industry benchmarks in Russia 25% 50% 75% 100% 0% Awareness Image Recognition Purchase Loyalty Awareness Image Recognition Purchase Loyalty - Key challenges - • Under-utilization of local customer insights and thus no ‘quick wins’ • Absence of a relevant positioning adjusted to local target group expectation (esp. prestige appeal) • Shortcomings in locally relevant storytelling • Low differentiation from key competitors/ local hero brands in Russia • Lack of effective creative execution and media strategy - Brand performance in Russia - Awareness challenge1 - Brand performance in Russia - Image challenge2 Selected strategies for Russia – Awareness & image challenges Source: globeone
  • 40. 40 German roots of the brand(s) not properly recognized in Russian target groups - Key challenges - • Missing link to German origin of a brand • Advertising, PR, event or online activities lacking proactive communication of German brand heritage and thus no realization of image transfer and additional price premium potential • Lack of story telling related to brand origin & history though one of few competitive advantages that cannot be easily imitated • No successful use of ‘educational approach’ Brand enjoys good reputation but purchase behavior and loyalty remain below Industry benchmarks in Russia - Key challenges - • Lack of strategy addressing middle income groups as well (e.g. brand-stretching in order to appeal to more price sensitive target customers) • Limited number of local distribution points • Lack of implementing sequential expansion strategies in line with regional development • Under-utilization of global CRM basics and related systems in the local market • Lack of effective activation at POS & in social media German origin challenge3 Activation & loyalty challenge4 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% Strategies for Russia – Leveraging maximum brand potential to grow sales (3/3) Selected strategies for Russia – German origin & activation challenge Source: globeone - Brand performance in Russia - - Brand performance in Russia - Awareness Image Recognition Purchase Loyalty Awareness Image Recognition Purchase Loyalty
  • 41. 41 • About globeone • Survey Approach • Germany’s Image in Russia • Leading German Brands in Russia • Insights into Information Channels in Russia • Marketing and Communication Strategies for Russia • Contact Agenda.
  • 42. 42 Global offices. globeone Cologne Head Office Kranhaus Süd Im Zollhafen 24 50678 Köln Germany Shanghai Office 16F Feidiao Internat. Bldg. 1065 Zhao Jia Bang Road 200030 Shanghai People's Republic of China Mumbai Office B 806, Sagar Tech Plaza Sakinaka Junction Andheri Kurla Link Road Andheri (East) Mumbai 400072 India São Paulo Office Singapore OfficeBeijing Office Office 39, Room 509A No. 4 Gong Ti Bei Lu Chaoyang District 100027 Beijing P.R. China Av. Cidade Jardim, 400 20th floor – room 08 01454-000 São Paulo Brazil 10 Collyer Quay, 40-53 Ocean Financial Centre Singapore 049135 Singapore Email: mumbai@globe-one.com Phone +91(0)2267703718 (ext. 11) Fax+91(0)2266459842 Email: saopaulo@globe-one.com Phone +55(0)1138180837 Fax+55(0)1138180899 Email: singapore@globe-one.com Phone +6568086050 Fax+6566225999 Email: beijing@globe-one.com Phone +86(0)1065935451 Phone +8613501298737 Fax+86(0)1065935463 Email: shanghai@globe-one.com Phone +86(0)2151581688 (ext. 1352) Fax+86(0)2151581686 Email: cologne@globe-one.com Phone +49(0)221788068-0 Fax+49 (0)221788068-29 www.globe-one.com Seoul Office 5F Seoul Design Works B/D, 683-133 Hannam-dong, Yongsna-gu, Seoul, Korea, 140-892 Email: seoul@globe-one.com Phone +6568086050 Fax+6566225999
  • 43. Thank you! © Copyright This document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements. Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul