Russian Standard Vodka strategies for global branding and expansion into the US market

Thèmes abordés

Vodka, Russie, Russian Standard Vodka, Roust Holding, Roustam Tariko, Eristoff, Absolut, Diageo, Pernod Ricard

Résumé du document

Russian Standard vodka is a Russian made vodka, which is based on the typical formula that Mendeleev, inventor of the periodic table of element, developed for the Czar Alexander III." Today's vodka has the similar taste, they no longer have to abide Mendeleev's standards". Distilled from charcoal filters, deluxe grain and pure Russian spring water, it confers to this beverage the authenticity of a 80% "Made in Russia" product, combine to the St Petersburg manufacturing process, and the gentry of an alcoholic water ("Voda") due to all the quality raw material used.

The remaining 20% of the mixture belongs to the well distinct packaging that draw its know-how from their European partners. Know-how used sparingly by Russian Standard which is almost fully vertical integrated company, that owned and managed from the wheat field to the distribution channels. Internal weaknesses are related to this half-fully integrated company, that sub-contracts the distillation to the Liviz distillery. "In 2001, they reached 350,000 9-liter cases, as a result, it was decided to doubled the manufacturing capacity of Russian standard".

Extraits

[...] This 17millions people have the possibility to adopt Russian Standard brand or switch to a substitute, or a new fancy entrants. This can be considered as an important competitive rivalry between companies. C. Assessment of the US macro‐environment PEST analysis, the evaluation of the macro-environment factors, would also influence the positioning of the RS vodka, but most of all the market entry strategy the US. According to the "alcohol and Tobacco trade Bureau - TTB", and concerning the political and Economic factors that are influencing our US entry, the trade of drinks that is up from alcohol is subjected to two taxes: the first one who concerned the tariff barrier, of 2,14$ per bottle, and the second which is the selling taxes of 39% but can vary between countries. [...]

[...] Positioning of the Russian Standard Vodka: RS vodka will target the Medium-high and high class of the US market, especially the 20-35, in contrary to the Russian target: student, new-workers, stock-market traders, artist, and top-managers. Due to the ageing of the population and the emerging purchasing power of the youth, the vodka need to make its footprint on the new entrant population, and provoke the same reaction as the whiskey does "My father drinks whiskey" Instead of this, no changes will be applied; the vodka would stay on the superpremium range II. [...]

[...] This threat is more evident for women. Women consumption of vodka, due to cocktails and mixture, is growing fast, but this can, in contrast to men, switch to another beverage other than super-premium spirits, such as wine or beers and other mixable spirits. Super-premium segment is constituted by 5 major competitors in the super-premium vodka, which represent about 89% of the market, with 2 leaders forming almost 70%. The premium market gets 5 main brands represented 96% of the market share. [...]

[...] GDP grew in 4Q' In addition, the inflation rate grows fast, and the analyst predicts its growth stability. Does the tragedy of World Trade Centre can breed an increasing demand of vodka to forget it? Thirdly, social environment factors as we have seen before, are commonly linked to the ageing of the population. Baby-boom spread slowly, and the next 15 years population will be less plentiful, which announce a difficult market entry compare to the 10 years ago Grey goose entry largest target population. [...]

[...] London Europe manufacturer: Label make by Jarvis Porter, UK; Caps make by Alucapvit, Italy; and Shipment cases, make by Metsa Serka, Finland ( ) Threats of new entrants: Super‐premium and Premium vodka entering U.S New trendy alcoholic beverages Competitive rivalry within an industry: Premium: Absolut; Stolichnaya Super‐premium: Belvedere; Grey goose Threats of substitute products: Women Beer (Heineken, Budweiser ) Wine to 16% alcoholic (Local, imported wine) Other Spirits, more than 20% alcoholic (Whiskey, Gin, Rhum) Men: Other Super‐premium spirits Bargaining of Customers: Male‐Female 25‐45 Medium High/High income Occupation: professionals; managers; entrepreneurs; artists www.themanager.org/pdf/p5f.pdf (2001), ‘Porter 5 Forces', Recklies Management Project GmbH 6 Develop above in the swot analysis; Threats of new entrants and bargaining power of the suppliers are difficulties that would slow down our objectives. Thanks to Porter analysis we will assess the intensity of competition on the market, through evaluating the customer, negotiation power and substitution products, to position our product in the US local market. Concerning the new entrants, super-premium vodka market in the US is not a risky market. Comparing to the premium vodka market, super-premium market represents almost 1/10 of the total premium 2000 sales. "The most attractive segment is one in which the barrier are high". [...]