The object of this case study is to develop a market strategy that could be used by firms dealing with Russian food market, namely concerning the waffle market. Lots of marketing surveys of waffle consumption in Russia has been done, dealing with different investing potential possibilities. Some of them, for instance, reveal that traditional non-packaged waffles - hugely popular in the Soviet era - remain very popular in Russia. Hard-die habits of the Soviet Union heritage. People and habits have changed; it's now time to modernize, to enhance, and to develop the market. The awakening of the Soviet Union sounded and it sounded well. But changing consumer lifestyles and the resulting shifts in consumption patterns remained important market drivers. The waffle-products are largely produced by domestic bakeries and confectionery firms, that is to say by the factories that have been specialized less than 20 years before in general Soviet Union sweets.
[...] Strength: * Quality products * Pioneer within our sector in having a well-developed quality management system * Image of European quality Opportunities * Russian market growth continues with booming economy * Russia's attractiveness for multinationals * Size of the market : Territory and population, growth, strong relationships with Europe * The domestic market offers a huge growth potential * Increasing European food trends * Lack of high-fat traditional pirojki * Big market with strong potential and purchasing power of the middle class * Snacking represents a hard-die Russian people habits. [...]
[...] (Healthy Food and Nutrition of Women and Their Families. Training course and workshop for health professionals. WHO/UNICEF, 2000) К здоровой России. Политика укрепления здоровья и профилактики заболеваний: приоритет основные неинфекционные заболевания. Москва (Towards a Healthy Russia. A Policy of Health Promotion and Disease Prevention: the Focus on Non-Communicable Diseases. Moscow, 1994) Материалы конференции «Питание и здоровье малоимущих семей» Результаты исследований по «Проекту содействия структурной перестройки системы социальной защиты населения». Самара (Proceedings of the conference "Nutrition and health of low-income families". [...]
[...] But important factor is the food habits of Russian youth develop largely oriented towards international brands in their stores. From the sales figures I have, it is obvious that women are consuming more bakery than men. It does very according to the age since women between 18 and 35 years old seem to consume far more bakery than women with ages between 35 and 55. Recommendation: According to our case study analysis, it seems obvious that the women segment could be widely seen as a great opportunity. [...]
[...] Appendix Fig 1.1 Main Russian supermarkets Conclusion As we have seen, it is possible to penetrate the Russian market since several international firms have already done it. Between the year 1998 and 2000, the Russian snack market tripled in size, growing from 66,000 tons to 200,310 tons. In dollar terms, this market was estimated at 760 million CDN in 2001, compared to 350 million CDN in 2000. Here are some ideas on how to invest concretely in Russia In order to set up business in Russia, we want to implant a subsidiary in the country. [...]
[...] Russia is a very price-sensitive market, and market leadership strategies tend to be price-based, leveraging market shares and spreading overheads over a larger customer base Peer- consciousness is prominent in the Russian middle class, and new products and concepts must go through an initial phase of referrals and approval seeking, before they become popular with the target consumer classes Customer support and service standards are becoming crucial determinants of customer loyalty in all high value goods and in institutional sales Brand may require a cultural adaptation to the Russian market and may be unable to clone their Russian products based on successful trends in other countries. [...]
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