Russian Standard Vodka Market Research

Assignment
International Marketing Research
Prof. Dr. Thomas Baaken, Friederike von Hagen
By : Geo Joseph, Minto Mathew, Reuben Kurien
Enrollment no. 1220809, 1220814, 1220817
Submitting Time 14 th March 9:00am
Company Product Country
Case :
Global Branding
and US expansion
Russian
Standard Vodka US (Western)

Russian standard vodka : Branding and Expansion
in US
Geo Joseph 1220809
INTERNATIONAL MARKET RESEARCH
Minto Mathew 1220814
Reuben Kurien 1220817

Introduction
Christ 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 of
Russian brands
• Was Selling at $ 13 a bottle outselling the other brands
• Achieved premium segment with 27% market share.

The Expansion plan
Goal
New line of products and services with international quality
A brand that sets Russian standards both at home and abroad
They made Russian Standard a global umbrella brand, Developed an entry strategy with
Mc Kinsey
Vodk
a
Bank
Step 1
Domestic success leading to
international expansion :
• Strong merchandising skills
• Created a strong innovative
brand image
Step 2
New model with Mc Kinsey:
• Small lending programmes and
credit card services, retail banking
• Target market : Middle class
borrowers

Vodka Market Entry
Stratergy
Domestic success of Vodka lead them
to international expansion
• UK, Italy, Greece, Estonia, Hungary,
Bulgaria..
Strategy towards
International
expansion
• Shelve placement
• Small local
distributors
• No prmotions or
print
advertisements
Results :
Sales increased
steadily with 6 % on
overall brand sales
Leading to new Venture : Russian
Standard Bank
• Loans and retail banking
Russian Standard online portal for
Distribution services
(closed in 2011)

The Vodka Market
Russian Market US Market
• Dominated by local
brands
• Vodka considered a
meal drink
• Imported Brands :
Absolut, Finladia, Smirn
off
• Most common drink
• 95% home made
For internationalisation Russian Standard would need to segment and target the
customers with preferable promotion and advertising techniques
• Biggest premium Vodka
Market
• Popular among younger
consumers
• Versatility and mixability
promoted Vodka
• Introduction of super
premium brands

Market Research in Russia
Target
Customer
Brand
Positioning
• Male audience
(age group in
30s and 40s
• Middle to high
class (500$-
1500$)
• Pure genuine
Russian vodka in
accordance with
Mendeleev.
• Source of
national
identification, bel
onging. Create
emotions like
Pride.
• Aura of prestige.
Packaging Pricing
• Bottle design
• Label and color
• Mendeleev’s
Signature
• Priced at 19 $
• Forecasted 5 in
10 (millions)
would
occasionally buy
the brand
• Cheaper then
imported brands

Promotion and Advertising
Advertising
• Campaign through Print ads, glossy magazine
• Sponsoring night club parties
• Acquiring shelve space with good visibility and market response
• Incentives at supermarkets to promote

Challenges with Internationalization :
Marketing
Planning
• Market segmentation
• Entry strategy
• Competitive strategy
• 4P
• Economic environment, Culture
• Consumer behaviour, Buying decisions
• Competition, Trade barriers
With domestic
success Russian
Standard has a
brand image among
premium Vodka,
Now to capitalize it
to the US market,
The company will
have to have a entry
strategy supported
by facts and figures
from study across
US consumer
analysis to
competition level
SHIFT FROM ETHNOCENTRIC APPROACH TO POLYCENTRIC
APPROACH
New
Market

Research towards expansion
Strategic
Q
• How to enter the foreign market
• Product, Price, Place, Promotion
Market
Assessme
nt
Marketing
Assessme
nt
• 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

Collection of secondary report / multi client based report
Target
Customers
• Geographic
Consumer
Behaviour
Market
Assessment
• Seek high-
quality, reasonabl
e vodka
• Wish to savor and
enjoy beverage
• Enjoy perception
of class
• Sales and
revenue growth
from Vodka
sales
• Market share
across different
competitors
• Demographi
c
• Urban
• Age group : 25 -
50
• Male Female
ratio
• Income level
• Occupation

Competitor Analysis
Brand Producer Ad Campaign Summary
Smirnoff Diageo
Used to emphasize purity and its
premium-status, now markets
interactive “Be There” campaign
focusing on sharing special moments
in life.
Absolut Pernod Ricard
Long running ad campaign based on
the distinctive bottle shape and the
phrase “Absolut_____.” Currently “In
an Absolut World.”
Grey Goose Bacardi
Marketed as a premium brand vodka
and has luxurious lifestyle brand to
correspond, for those who value
refined subtleties in all aspects of life.
Svedka Constellation Brands
History of overt sexual ads, newest
campaign set in 2033: introduces
futuristic, party-going fembot
Svedka_Grl, “Voted #1 vodka of
2033.”

Primary Research
Quantitative
research
• Premium vodka consumer study
• The awareness of brand
• The amount spend on alcohol consumption with respect to
income group level
Qualitative
research
Methodologi
es
• 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

Sampling for Quantitative research:
Sampling Techniques
followed
• Quota Sampling
(For analysing buying
behaviour)
• Stratified Sampling
(For consumer drinking and
preference analysis)
Determination of Sample
Size
• Based on variability of
population
(1500 respondents)

Qualitative research:
Techniques followed
• Observation in super
markets
(For analysing customer
buying actions, Consumer
behaviour towards Premium
Vodka and their need)
• Focus Group Method :
GD
(For understanding desires and
market trend of new US market)
These research will result in
understanding
• Psychographic factors:
o Personality
o Cultures
o Values

Limitations:
• Respondents might not be
comfortable with sharing details in
regards to their drinking habits
• Time consuming to analyze the data
will effect the results due to the
change in product life cycle and
change in customer preference
• Our research would limit the
understanding of competitor success
factor
• High level of Abstainers could result
in difficulty to get right reports as
samples might not be relevant for the
study.

QuestionnaireLink :file:///C:UsersdgeojosephDesktopRussian%20Standard%20Vodka.htm
 Name :
 Age :
 Nationality :
 1. Are you an alcohol Consumer?
 Yes No
If yes, you can proceed with the question
 2. How often do you consume alcohol?
 Everyday
 Twice a week
 Once a week
 Once a month
 Occasionally

 3. What type of alcohol do you prefer consuming?
 Whiskey
 Rum
 Vodka
 Beer
 Gin

 4. How often do you consume vodka?
 Regularly
 Sometimes
 Occasionally
 Never

 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 premium
brand of vodka?
 Yes No

 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 consuming
family, friends and relatives?
 Yes
 No
 Maybe

10. Would you be willing to purchase Russian Standard Vodka if it were
available in stores?
 Yes
 No
 Maybe

Thank You.
Q n A

Russian Standard Vodka Market Research

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