Russia

Marketing In Russia — Presentation Transcript

* 1. Marketing in Russia

* 2. Market Basics Economic crisis in 1998 affected Russia Russia & Eastern Europe has a strong economic growth & a huge potential Large Educated middle class is fuelling demand for consumer goods Emergence of democratic system is causing changing government rules & regulations Free markets & capitalism are still taking root – Many people are yet to learn the rules of capitalism and free markets

* 3. Market Basics Newly Democratized countries like Russia and former Soviet states have income levels comparable to that of developing countries Russia has highly educated population who are aware of the latest standards People are proud of their past achievements and hope for a better future High tech sector like software, machinery etc is fast growing Oil & Energy plays a major role in local economy

* 4. International Agencies International Agencies like World Bank, EBRD etc play important role by Lending capital, economic planning and technical assistance Firms engaged in infrastructure development need to interact & build networks with international Agencies Telecommunication Roads Electric Power

* 5. Political Factors Political Risks are still high in Russia Government intervention in business is not uncommon Changing rules & regulations add to the headache Political attitudes towards capitalism and free market is not very encouraging Export-Import controls still hinder trade Export controls from Western countries hinder trade in high tech goods

* 6. Market Segmentation First stage of segmentation will be ethnic segmentation Hungarians in Slovakia etc. Psychographic Segmentation based on income levels and attitudes Kuptsi (Merchants) Cossacks Students Business Executives Russian Souls

* 7. Attitudes & Preferences Lada Marlboro Smirnoff Mercedes Winston Johnnie Walker 2CV Marlboro Local Vodka BMW Dunhill Remy Martin Volkswagen...