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Russian light color final

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Russian light color final

  1. 1. AssignmentInternational Marketing ResearchProf. Dr. Thomas Baaken, Friederike von HagenBy : Geo Joseph, Minto Mathew, Reuben KurienEnrollment no. 1220809, 1220814, 1220817Submitting Time 14 th March 9:00amCompany Product CountryCase :Global Brandingand US expansionRussianStandard Vodka US (Western)
  2. 2. Russian standard vodka : Branding and Expansionin USGeo Joseph 1220809INTERNATIONAL MARKET RESEARCHMinto Mathew 1220814Reuben Kurien 1220817
  3. 3. IntroductionChrist University - FHWS| 2014.13 | International Marketing Research• Launched in 1998 by Roust Hodings• Roustam Tariko• Mix of quality orientation & Russian Pride• Wanted to have world class quality for a new breed ofRussian brands• Was Selling at $ 13 a bottle outselling the other brands• Achieved premium segment with 27% market share.
  4. 4. The Expansion planGoalNew line of products and services with international qualityA brand that sets Russian standards both at home and abroadThey made Russian Standard a global umbrella brand, Developed an entry strategy withMc KinseyVodkaBankStep 1Domestic success leading tointernational expansion :• Strong merchandising skills• Created a strong innovativebrand imageStep 2New model with Mc Kinsey:• Small lending programmes andcredit card services, retail banking• Target market : Middle classborrowersChrist University - FHWS| 2014.13 | International Marketing Research
  5. 5. Vodka Market EntryStratergyDomestic success of Vodka lead themto international expansion• UK, Italy, Greece, Estonia, Hungary,Bulgaria..Strategy towardsInternationalexpansion• Shelve placement• Small localdistributors• No prmotions orprintadvertisementsResults :Sales increasedsteadily with 6 % onoverall brand salesLeading to new Venture : RussianStandard Bank• Loans and retail bankingRussian Standard online portal forDistribution services(closed in 2011)Christ University - FHWS| 2014.13 | International Marketing Research
  6. 6. The Vodka MarketRussian Market US Market• Dominated by localbrands• Vodka considered ameal drink• Imported Brands :Absolut, Finladia, Smirnoff• Most common drink• 95% home madeFor internationalisation Russian Standard would need to segment and target thecustomers with preferable promotion and advertising techniques• Biggest premium VodkaMarket• Popular among youngerconsumers• Versatility and mixabilitypromoted Vodka• Introduction of superpremium brandsChrist University - FHWS| 2014.13 | International Marketing Research
  7. 7. Market Research in RussiaTargetCustomerBrandPositioning• Male audience(age group in30s and 40s• Middle to highclass (500$-1500$)• Pure genuineRussian vodka inaccordance withMendeleev.• Source ofnationalidentification, belonging. Createemotions likePride.• Aura of prestige.Packaging Pricing• Bottle design• Label and color• Mendeleev’sSignature• Priced at 19 $• Forecasted 5 in10 (millions)wouldoccasionally buythe brand• Cheaper thenimported brandsChrist University - FHWS| 2014.13 | International Marketing Research
  8. 8. Promotion and AdvertisingAdvertising• Campaign through Print ads, glossy magazine• Sponsoring night club parties• Acquiring shelve space with good visibility and market response• Incentives at supermarkets to promoteChrist University - FHWS| 2014.13 | International Marketing Research
  9. 9. Challenges with Internationalization :MarketingPlanning• Market segmentation• Entry strategy• Competitive strategy• 4P• Economic environment, Culture• Consumer behaviour, Buying decisions• Competition, Trade barriersWith domesticsuccess RussianStandard has abrand image amongpremium Vodka,Now to capitalize itto the US market,The company willhave to have a entrystrategy supportedby facts and figuresfrom study acrossUS consumeranalysis tocompetition levelSHIFT FROM ETHNOCENTRIC APPROACH TO POLYCENTRICAPPROACHNewMarketChrist University - FHWS| 2014.13 | International Marketing Research
  10. 10. Research towards expansionStrategicQ• How to enter the foreign market• Product, Price, Place, PromotionChrist University - FHWS| 2014.13 | International Marketing ResearchMarketAssessmentMarketingAssessment• Potential of foreign market• Consumer behaviour• Mass media channels and Distribution channels• Nature of foreign sales effort• Pricing and promotion methods• Foreign laws against competitive advertising
  11. 11. Collection of secondary report / multi client based reportTargetCustomers• GeographicChrist University - FHWS| 2014.13 | International Marketing ResearchConsumerBehaviourMarketAssessment• Seek high-quality, reasonable vodka• Wish to savor andenjoy beverage• Enjoy perceptionof class• Sales andrevenue growthfrom Vodkasales• Market shareacross differentcompetitors• Demographic• Urban• Age group : 25 -50• Male Femaleratio• Income level• Occupation
  12. 12. Competitor AnalysisChrist University - FHWS| 2014.13 | International Marketing ResearchBrand Producer Ad Campaign SummarySmirnoff DiageoUsed to emphasize purity and itspremium-status, now marketsinteractive “Be There” campaignfocusing on sharing special momentsin life.Absolut Pernod RicardLong running ad campaign based onthe distinctive bottle shape and thephrase “Absolut_____.” Currently “Inan Absolut World.”Grey Goose BacardiMarketed as a premium brand vodkaand has luxurious lifestyle brand tocorrespond, for those who valuerefined subtleties in all aspects of life.Svedka Constellation BrandsHistory of overt sexual ads, newestcampaign set in 2033: introducesfuturistic, party-going fembotSvedka_Grl, “Voted #1 vodka of2033.”
  13. 13. Primary ResearchQuantitativeresearch• Premium vodka consumer study• The awareness of brand• The amount spend on alcohol consumption with respect toincome group levelChrist University - FHWS| 2014.13 | International Marketing ResearchQualitativeresearchMethodologies• Taste and liking of the customer towards Russian Vodka• Consumer behaviour towards selection of brand• Emotional and other context related to premier Vodka• Quantitative : Survey, questionnaires• Qualitative : Observation Method, Focussed group discussion
  14. 14. Sampling for Quantitative research:Christ University - FHWS| 2014.13 | International Marketing ResearchSampling Techniquesfollowed• Quota Sampling(For analysing buyingbehaviour)• Stratified Sampling(For consumer drinking andpreference analysis)Determination of SampleSize• Based on variability ofpopulation(1500 respondents)
  15. 15. Qualitative research:Christ University - FHWS| 2014.13 | International Marketing ResearchTechniques followed• Observation in supermarkets(For analysing customerbuying actions, Consumerbehaviour towards PremiumVodka and their need)• Focus Group Method :GD(For understanding desires andmarket trend of new US market)These research will result inunderstanding• Psychographic factors:o Personalityo Cultureso Values
  16. 16. Limitations:Christ University - FHWS| 2014.13 | International Marketing Research• Respondents might not becomfortable with sharing details inregards to their drinking habits• Time consuming to analyze the datawill effect the results due to thechange in product life cycle andchange in customer preference• Our research would limit theunderstanding of competitor successfactor• High level of Abstainers could resultin difficulty to get right reports assamples might not be relevant for thestudy.
  17. 17. QuestionnaireLink :file:///C:UsersdgeojosephDesktopRussian%20Standard%20Vodka.htm Name : Age : Nationality : 1. Are you an alcohol Consumer? Yes NoIf yes, you can proceed with the question 2. How often do you consume alcohol? Everyday Twice a week Once a week Once a month OccasionallyChrist University - FHWS| 2014.13 | International Marketing Research
  18. 18.  3. What type of alcohol do you prefer consuming? Whiskey Rum Vodka Beer Gin 4. How often do you consume vodka? Regularly Sometimes Occasionally NeverChrist University - FHWS| 2014.13 | International Marketing Research
  19. 19.  5. Which is your favourite brand of vodka? Absolute Smirnoff Romanov Stoli Skyy Grey Goose 6. Are you aware of Russian Standard Vodka? Yes No 7. Would you like to try Russian standard vodka, which is a premiumbrand of vodka? Yes NoChrist University - FHWS| 2014.13 | International Marketing Research
  20. 20.  8. On a scale of 1-5 how would rate the taste of Russian Standard Vodka? 1-Too strong 2- Strong 3- Normal 4- Smooth 5- Very Smooth _____ 9. Would recommend this brand of vodka to your alcohol consumingfamily, friends and relatives? Yes No MaybeChrist University - FHWS| 2014.13 | International Marketing Research
  21. 21. 10. Would you be willing to purchase Russian Standard Vodka if it wereavailable in stores? Yes No MaybeChrist University - FHWS| 2014.13 | International Marketing Research
  22. 22. Thank You.Q n AChrist University - FHWS| 2014.13 | International Marketing Research

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