Russian consumers and branding: some insights for 2010s

Consumer Preferences
And Brand Development:
What to Think About in 2010s...
Sergei E. Mitrofánov,
for Nordea Annual Russia Seminar 2010

Stockholm; 25 May 2010

SUNDAY EVENING QUOTES...

© Sergei E. Mitrofánov for Nordea Annual Russia Seminar; May 25, 2010

SUNDAY EVENING QUOTES...

«Carrousel hypermarket cancelled
its loyalty program and I forced to
buy new frequent customer card.

Girls at cash-desk are rude.
Is crisis over?»

B.R.I.C. COUNTRIES AND BRANDING

• «old local brands» still exist
• price sensitive
• «luxurious poverty» as a driver

• first in the market ...first in the minds

TWO CRISISES - TWO SHIFTS

• In 1999 capitalism finally established in Russia
after more then 70 years of communism myopia
• The recession of 2008-2009 will force Russia to
move to real market economy


«BRAND AS...» FROM ENTREPRENEURS PROSPECTIVE

100

75

50

25

0
2005 2008 2010

as logo as communication as strategy

«BRAND AS...» FROM ENTREPRENEURS PROSPECTIVE

100

75

50

25
The period of "primary market
capture " has passed or passes
0
2005 2008 2010

as logo as communication as strategy

RUSSIA AS A MARKET(S)

penetration map»...
...is not just an «internet


UNDERSTAND YOUR RUSSIAN CUSTOMER

45+ people from the past

most established
25-45
segment

25- like all young people

FROM «NEW» RUSSIANS TO GLOBAL RUSSIANS

2000s

1990s

driving force
for 2010s

UNDERSTAND YOUR RUSSIAN CUSTOMER OR PARTNER

Who are the «Global Russians»?
• 25-35yo
• well educated

• speaks foreign languages
• travels a lot

BRAND AS COMMUNICATION

• Middle class doesn’t work as a market
concept in Russia; middle class is
everyone from underpaid intellectuals to

new-rich Russians.


• Communication channels in Russia
are overloaded. That makes it difficult
to establish classical brand

communications especially in FMCG.


Are you sure all Russians speak...Russian?



Are you sure all Russians speak...Russian?
• Take your time
studying the regional

markets. The
perception of a brand
communication can
be completely
different in Moscow
and in Ural region.


• Do not think of the
budget as a constraint
but as a possibility.

Good marketing ideas
do not necessarily
cost much money but
pay off in the future.


• Enhance the country
origin of your product,
ex. Swedish goods are
evaluated as very

high-quality and
middle-upper price
level. Swedish means
quality, reliability and
ecology.


• Be aware of the fact that
certain products have
been strongly associated
with certain countries:

quality posh cars come
from Germany, wooden
houses are made in
Finland, tea is the English
drink and thus of a good
quality, France is the best
in making perfumes and
producing wine, etc.

BRAND AS A BEHAVIOUR

• Focus on customer loyalty.
Now the customers easily
switch from one trade mark to
another. Rather little work is
done on enhancing loyalty.


BRAND AS A BEHAVIOUR

• A strong brand is the best
tool in attracting the best
personnel, but not enough
to grow the staff loyal to
the company.


• Plan your brand
activities long term,
but leave room for

spontaneity.

BRAND AS AN INNOVATION

• The Russian staff on all corporate
levels has high innovating
potential. Combined with the right
structure of control for the job
execution, this potential can be

used to 100%

BRAND AS A FUTURE

• It is important to invest
money in the image, but
even more important is to
have a worked out
platform and strategy for Шаверма (rus) - shawerma

how to do.

CONTACTS

Sergei E. Mitrofánov
Senior Brand Consultant
Brandflight (Russia & CIS)

Sergei.Mitrofanov@brandflight.com
mobile +7 903 7243295

www.brandflight.com

Russian consumers and branding: some insights for 2010s

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