globeone bric branding survey - russia edition
DESCRIPTION
Over 90% of urban consumers in Russia know a multitude of German brands and show a strong preference for them. German brands are liked among all three social classes represented in the survey – emerging middle class, middle class and upper middle class. It is interesting to point out that German brands are most strongly favored by 94% of the emerging middle class with gross monthly income of RUB 12,000-36,000 (EUR 290-880). This indicates an immense potential for German products and services among the growing urban population in Russia. In total, 1,000 Russian consumers from Moscow, St. Petersburg, Yekaterinburg, Novosibirsk and Nizhny Novgorod have been interviewed. The Russia results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.TRANSCRIPT
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© CopyrightThis document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.
BRIC Branding® Survey – Russia Edition
The Perception of German Brands in Russia – Strengths, Weaknesses and Opportunities
June 2012
2
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
3
Key findings – Germany’s image in Russia
Source: globeone
COUNTRY-OF-ORIGIN IMAGE OF VERY HIGH IMPORTANCE IN RUSSIA90% of Russian consumers and B-to-B buyers consider the Country-of-Origin Image (COO-Image) to be of central importance in the purchase decision process.
EXTREMELY POSITIVE ATTITUDE TOWARDS GERMAN BRANDSAn overwhelming majority of Russians (88%) show positive attitude towards German brands. This is the highest figure compared to other BRIC countries that were surveyed.
GERMAN BRANDS LEADING IN ALMOST ALL DIMENSIONSGerman brands lead the ranking in 12 out of 15 categories of values associated with their performance. This perception is especially distinctive in such categories as excellent quality, high performance, good reliability and trustworthiness.
SHORTCOMINGS IN SOPHISTICATIONGerman brands show some shortcomings in “sophistication” as they are not perceived as being very fashionable or exciting, nor geared to local tastes. France and Japan outperform Germany in this category. Japan also scores slightly higher than Germany in terms of “innovativeness & high-tech”.
SOME BARRIERS TO ENTER THE RUSSIAN MASS MARKETMost German brands have a strong premium image and score high on the prestige scale. Therefore, many brands are also perceived as being expensive. Limited affordability of German products because of relatively low income level may pose barriers to German products gaining a significant share in the Russian market.
Germany’s image in Russia – Key findings (1/2)
4
Key findings – Leading German brands in Russia
Source: globeone
GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIESGerman brands are most famous for automobiles (94%), home appliances (86%) and pharmaceuticals (44%). 7 out of 12 brands that urban Russians remember spontaneously belong to the above-named sectors.
MERCEDES-BENZ, BMW AND AUDI ARE THE BEST KNOWN GERMAN BRANDS IN RUSSIAAn overwhelming majority of the Russian population is aware of numerous German brands. Brands of three German car manufacturers – Mercedes-Benz, BMW, and Audi – take the leading position with 99% aided awareness.
BMW IS THE BEST-LIKED GERMAN BRAND IN RUSSIAGerman automotive brands – BMW (95%), Mercedes-Benz (94%), and Volkswagen (92%) – enjoy the highest ranking on the positive attitude scale, followed by Audi (91%) and sportswear multinational Puma (91%).
NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN RUSSIAThe most frequently purchased/used German brand in Russia is Nivea (68%) followed by Adidas (62%) and Braun (61%). Only 6 brands out of 45 represented in the survey enjoy 50% and over purchase/usage rate. There is potential for German brands to secure a larger market share in the Russian market.
INTERNET IS THE MOST POPULAR INFORMATION SOURCE TO LEARN ABOUT FOREIGN BRANDSThe Internet serves as a leading source for Russian consumers to find information about German brands being used by 29%. Other important sources include shopping centers (19%), TV (19%), and personal recommendations by family or friends (17%).
Germany’s image in Russia – Key findings (2/2)
5
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
6
Global network with strong focus on fast growth markets
Mumbai Office
Cologne Head Office
São Paulo Office
Singapore Office
Beijing Office
Shanghai Office
globeone is a business consultancy with a strong representation in the world’s fast growth markets
We offer specialized marketing strategy consulting & project management services to help drive clients’ success in the world’s key growth regions
About globeone (1/2)
Seoul Office
7
Marketing & communication strategy consulting to drive clients’ success in BRIC
Exec
ution
Stra
tegy
supp
ortConsumer & strategic
market insights1
Quantitative market research design (e.g.
market potential, segmentation)
Customer insight generation & market trend
studies
Competitor analysis & benchmarking
Qualitative market research (e.g. online user experience, focus groups)
2 Optimized positioning & planning
Brand architecture & brand portfolio strategies
Definition of goals and KPIs & related strategy
development
Brand and product (re-) positioning & value
proposition development
Business case & market entry program development
3 Support of 360° fulfillment
Employer brand development & program
implementation
Hands-on project management & creation of professional presentations
Creation of 360°integrated activity planning
Creation of briefings & steering of specialized
agencies (e.g. pitch support)
4 Brand performance & loyalty
Marketing spending effectiveness (e.g.
correlation of investment and sales)
Brand performance analysis & controlling (e.g.
brand monitor surveys)
CRM audit & CRM strategy development
Set-up of activities & programs to enhance
brand loyalty
Global Strategy + Local Adjustment = Success in BRIC
– Typical globeone project examples for major global clients (selection) –
About globeone (2/2)
8
• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
9
Countries/Cities:
Brazil Russia India China
São Paulo Moscow Mumbai Shanghai
Rio de Janeiro St. Petersburg New Delhi Beijing
Porto Alegre Novosibirsk Bangalore Guangzhou
Recife Yekaterinburg Chennai Chengdu
Brasília Nizhny Novgorod Pune Wuhan
Objectives:• Identification of Country-of-origin Image (COO-Image) relevance in BRIC • Assessment of perception of German brands amongst urban citizens• Strengths & weaknesses of German brands and strategic implications
Method/Timing1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone and face-to-face interviews: n ≈ 4,000• Field work conducted: 2011
Over 4,000 interviews in 20 of the most important BRIC cities to analyze the perception of German brands
Survey approach – Objectives and scope
Source: globeone
German brands
1) Representative survey based on research conducted by a certified market research agency in each country.
10
Cities:
Objectives:• Assessment of perception of German brands among Russian urban citizens• Analysis of Russia-specific strengths, weaknesses and opportunities• Guiding successful brand management in Russia
Method/Timing1: • Inclusion of major German brands • Computer-assisted telephone interviews: n = 1,000 for Russia• Selection of cities to achieve a good representation of urban Russia
For the Russia edition, 1,000 interviews were conducted in 5 key Russian cities
Survey approach – Objectives and scope
Source: globeone
Yekaterinburg
NovosibirskMoscow
St. Petersburg
Nizhny Novgorod
1) Representative survey based on research conducted by a certified market research agency in Russia. The city sample was selected in order to achieve a good representation in key Russian regions.
German brands
11
COO – Definition
“Country-of-origin is defined as the country where corporate headquarters of the company marketing the product or brand are located. This does not require local manufacturing.” 2
“Consumers and customers associate positive or negative attributes with a company, product or brand, if they know it originates from a certain country.“ 3
“Country-of-origin effect is one of the most analyzed phenomena in consumer behavior in international markets.“ 1
COO – High interesteST
Survey approach – Country-of-origin definition
Country-of-origin (COO) as a key factor for purchase decisions in Russia
Source: globeone
Sources: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.
12
Survey approach – Country-of-origin in Russia
COO-Image – Important success factor in Russia
Urban consumers in the Russian market are particularly sensitive related to the COO-Image resulting from• Social mobility: Local consumers’ demand for prestigious
brands to highlight their social progress• Novelty: Lower availability and higher novelty of foreign
brands also boost their image• Limited trust: lower level of quality and marketing
competence of local brands in most emerging markets
Russia-specific relevance of a positive COO-Image
A positive COO-Image can:• Increase perceived quality and prestige of a brand • Promote consumers’ purchase intentions in favor of a brand
Potential for increasing brand performance depending on respective industry and product category
General relevance of a positive COO-Image– Perception of a brand’s corresponding country-of-origin –
Examples
!
Source: globeone
13
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
14
COO-Image important for purchase decision – confirmed by 90% of Russian respondents
Germany’s image in Russia – Importance of COO-Image
Source: globeone
– Importance of COO-Image –
Sample size in Russia: 1,000. Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?
Not at all important Not important Does not really matter Relatively important Very important0%
10%
20%
30%
40%
50%
60%
70%
0% 0%
10%
29%
61%
15
COO-Image is most important for RussiansC
Germany’s image in Russia – Importance of COO-Image
Source: globeone
Not important at all
Not important
Does not really matter
Very important
Relatively important
10%
20%
36%
29%
5%4%
31%
38%
19%
8%
1%
14%
47%
25%
13%
0%
0%
61%
29%
10%
Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China)Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?
16
• Overwhelming majority have positive attitude towards German brands
• Only a miniscule fraction (1%) that does not like German brands
• Excellent opportunities for effective positioning utilizing country-of-origin potential
German image as an asset – 88% of the Russian urban population confirm positive image of German brands
Q.: Do you like German brands, products or services?
– General attitude towards German brands in Russia –
Source: globeone
Sample size in Russia: 1,000
88% associate positive image!
I do not like German brands
at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much
0%
10%
20%
30%
40%
50%
1% 0%
11%
43%45%
Germany’s image in Russia – General attitude towards German brands
17
Best results for positive perception of German brands in Russia compared to other BRIC countries
Germany’s image in Russia – General attitude towards German brands
Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China) Q.: Do you like German brands, products or services?
Source: globeone
42%
9%
38%
47%
5%
1%
22%
59%
13%
5%
1%
45%
43%
11%
0%
1%
16%
33%
7%
2%I do not like
German brands at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much
18
German brands enjoy consistently high reputation across all income classes
Germany’s image in Russia – Income-class-specific attitude towards German brands
Source: globeone
I do not like German
brands at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much
– Liking of German brands across social classes (according to gross monthly income) –
– Middle class – (€ 880-1,960; RUB 36,000-80,000)
– Upper middle class – (> € 1,960; > RUB 80,000)
– Emerging middle class – (€ 290-880; RUB 12,000-36,000)
1%
40%
14%
44%
84% associate positive image
17%
17%
67%
84% associate positive image
0%
1%
49%
5%
45%
94% associate positive image
0% 0%
0%
Q.: Do you like German brands, products or services? Exchange rate: 1 € = RUB 40.83 (June 2012)
19
German brands most strongly associated with quality, reliability and performance
Germany’s image in Russia – Perception of brand and product attributes (1/2)
Source: globeone
– Perception of brand and product attributes based on respective country of origin –
Excellent quality
Good reliability
High durability
High performance
Outstanding design
High prestige
Sophisticated0% 20% 40% 60% 80%
GermanyUSJapanChinaFranceRussia
Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
20
German brands not seen as fashionable or exciting, but they score high on trustworthiness and service
Germany’s image in Russia – Perception of brand and product attributes (2/2)
Source: globeone
– Perception of brand and product attributes based on respective country-of-origin –
Innovative & high-tech
Fashionable & exciting
Close to local customer needs
Good after-sales service
Good value for money
Trustworthy
Good corporate citizenship
Protecting environment & climate0% 20% 40% 60% 80%
GermanyUSJapanChinaFranceRussia
Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
21
German brands enjoy the best reputation in Russia based on 15 performance indicators
Germany’s image in Russia – Country-of-origin image strength index
Source: globeone
– Country-of-origin image strength index – (average scores of 15 relevant brand & product attribute dimensions)
Russia China France US Japan Germany0%
10%
20%
30%
40%
50%
60%
70%
10%13%
30%
38%
52%
64%
Sample size in Russia: 1,000
22
• German brands are mostly seen as relatively and very expensive reflecting their focus on the premium segment
• Large potential to target emerging middle class with more locally adjusted product portfolio and pricing strategies
– Price perception of German brands in Russia –
Source: globeone
1% 0%
26%
56%
17%
Very cheap Relatively cheap
Very expensive
Relatively expensive
Similar to other countries` brands
Germany’s image in Russia – Price perception
Q.: What do you think about German brands in terms of price? Sample size in Russia: 1,000
73% of interviewees in Russia consider German brands to be relatively or very expensive
23
• Such industries as automotive and home appliances lead the ranking
• Eco-friendly technologies are not yet strongly associated with Germany
• German brands are weakly associated with services
Source: globeone
Germany’s image in Russia – Top industries with German association
Q.: What categories do you think German brands are famous for? Sample size in Russia: 1,000
– Industries/product categories most commonly associated with German brands –
Services (insurance etc)
Detergents
Eco friendly technology
Football
Cosmetics / Perfume
Food
Clothing / Fashion
Machinery
Pharmaceuticals / Medicine
Home appliances
Automobile / Motorcycles
0% 20% 40% 60% 80% 100%
3%
8%
9%
14%
15%
19%
21%
39%
44%
86%
94%
Urban Russians associate Germany mostly with cars, home appliances, pharmaceuticals and machinery
24
Overwhelming majority of the Russian respondents showed high awareness of German brands
– Unaided awareness for German brands in India (top 11) –
Source: globeone
Can recall a German brand
Can't recall a German brand
0%
20%
40%
60%
80%
100%
93% 7%
Hugo Boss
Puma
Metro Cash & Carry
Nivea
Braun
Adidas
Bosch
Audi
Siemens
BMW
Volkswagen
Mercedes-Benz
0% 10% 20% 30% 40% 50% 60%
6%
6%
7%
13%
13%
16%
29%
37%
39%
42%
57%
58%
– Unaided awareness for German brands in Russia (top 12) –
Germany’s image in Russia – Unaided awareness
Q.: Which German brands do you know ? Please name as many as come to your mind spontaneously. Sample size in Russia: 1,000
25
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
26
• German car manufacturers lead the top 12 ranking
• Mercedes-Benz, BMW, and Audi (99%) are the best-known German brands
• Siemens (95%) is the only non-automotive brand on the top 5 list
• Metro Cash & Carry (74%) is the only B-to-B brand on the top 12 list
Source: globeone
Leading German brands – Aided awareness (1/2)
Q.: I will read you a list of German brands. Which brands do you know?
Top 12 – Car manufacturers are at the top of the best-known German brands ranking with 99% awareness
(987)
(994)
(993)
(970)
(964)
(960)
(916)
(880)
(744)
(743)
(799)
(717)
0% 20% 40% 60% 80% 100%
Mercedes-Benz
BMW
Audi
Volkswagen
Siemens
Bosch
Braun
Nivea
Adidas
Metro Cash & Carry
Puma
Hugo Boss
99%
99%
99%
97%
96%
96%
92%
88%
80%
74%
74%
72%
– Aided brand awareness in Russia (top 12) –
Sample size in Russia: 1,000
27
• Deutsche Bank (71%) is the leading financial services brand
• Auto parts manufacturer Continental shows high awareness of 63%
• MINI (48%) has a significantly lower awareness compared to other leading car brands
• Industry leader Thyssen Krupp holds the 30th place
Source: globeone
Leading German brands – Aided awareness (2/2)
Q.: I will read you a list of German brands. Which brands do you know?
Rank 13 - 30 – Service and car companies enjoy higher awareness than consumer goods
– Aided brand awareness in Russia (rank 13 to 30) –
(714) (707) (706)
(700) (680)
(642) (636)
(629) (593)
(581) (575)
(554) (543)
(512) (478)
(442) (423) (422)
0% 20% 40% 60% 80% 100%
71%Deutsche Bank
Thyssen KruppBecks
Boehringer-IngelheimMINI
Carl ZeissMAN
MieleAEGDHL
Deutsche TelekomContinental
SkodaPorsche
BayerGrundig
Lufthansa 71%71%
70%68%
64%
63%59%
58%58%
55%54%
51%48%
44%42%42%
64%Henkel
Sample size in Russia: 1,000
28
• BMW (95%), Mercedes-Benz (94%) and Volkswagen (92%) hit the top 3 list
• Hugo Boss (91%) is the only fashion clothing brand among the top 12
• Nivea (86%) is the only skin- and body care brand on the top 12 list
• METRO extremely well perceived in Russia with its Cash & Carry wholesale formats
Source: globeone
Leading German brands – Positive image (1/2)
Q.: Do you like this brand in general?
Top 12 – Automotive industry tops the ranking – BMW, Mercedes-Benz and Volkswagen as best liked brands
– Positive attitude towards German brands in Russia (top 12)¹ –
(943)
(938)
(891)
(896)
(674)
(649)
(669)
(696)
(829)
(758)
(585)
(805)
0% 20% 40% 60% 80% 100%
BMW
Mercedes-Benz
Volkswagen
Audi
Puma
Hugo Boss
Metro Cash & Carry
Adidas
Bosch
Nivea
Porsche
95%
94%
92%
91%
91%
91%
90%
87%
86%
86%
86%
84%Siemens
1 Based on number of interviewees who know the brand
29
• Bayer (83%) demonstrates the highest score on the positive image scale in the pharmaceuticals industry
• DHL (77%) is in the upper third part of the ranking
• DAX 30 listed SAP (69%) ranks last in the top 30 ranking
Source: globeone
Leading German brands – Positive image (2/2)
Q.: Do you like this brand in general?
Rank 13 - 30 – Bayer as best liked German pharmaceuticals brand
– Positive attitude towards German brands in Russia (rank 13 to 30)¹ –
(760) (580) (525)
(315) (523)
(323) (450)
(285) (235)
(412) (392) (368) (320) (447) (391) (236)
(289) (181)
0% 20% 40% 60% 80% 100%
Bayer 83%Henkel 83%Osram 82%Skoda 81%
Dr. Oetker 80%DHL 77%
Haribo 75%BASF 75%AEG 72%
MAN 72%Carl Zeiss 72%
Boehringer-Ingelheim 72%Continental 71%
Miele 71%
Paulaner 69%SAP 69%
Leica 70%
Braun 83%
1 Based on number of interviewees who know the brand
30
• Deutsche Bank and Deutsche Telekom lead ranking due to adjective ‘Deutsche’ in the brand name
• 4 leading car brands are among top 7
• Bosch and Siemens, world’s largest electronics and engineering companies, are also on the top 12 list
• Volkswagen using its “Das Auto” slogan scores 96%
Source: globeone
Leading German brands – Recognition of German brand origin (1/2)
Q.: Do you think this brand is originally from Germany or not?
Top 12 – German brands showing high recognition of “German origin” with major car manufacturers in top 7
– Recognition of German brand origin in Russia (top 12)¹ –
(709)
(589)
(966)
(964)
(960)
(683)
(934)
(194)
(889)
(153)
(883)
(389)
99%
99%
97%
97%
97%
96%
97%
95%
93%
93%
92%
92%
Deutsche Bank
0% 20% 40% 60% 80% 100%
Deutsche Telekom
Mercedes-Benz
BMW
Audi
Lufthansa
Volkswagen
Zwilling
Bosch
Hansgrohe
Siemens
Thyssen Krupp
1 Based on number of interviewees who know the brand
31
• German-sounding brands like Carl Zeiss and Henkel have a high recognition rate
• Competitors Becks (83%) and Paulaner (82%) enjoy high recognition scores
• LANXESS specialty chemicals group also demonstrates a high recognition rate of 84% despite its non-German-sounding name
Source: globeone
Leading German brands – Recognition of German brand origin (2/2)
Q.: Do you think this brand is originally from Germany or not?
Rank 13 - 30 – German-sounding brands scoring high on the origin recognition scale
– Recognition of German brand origin in Russia (rank 13 to 30)¹ –
(462) (625) (483)
(802) (274)
(695) (72)
(618) (549) (380)
(627) (486) (112)
(350) (340)
(712) (141)
(502)
90%89%89%
88%88%
87%87%
86%86%86%
84%84%84%
83%82%
81%81%
80%
Carl Zeiss
0% 20% 40% 60% 80% 100%
BayerMAN
BraunBASF
AdidasBertelsmann
Hugo BossHenkel
Boehringer IngelheimPuma
DHLLANXESS
BecksPaulaner
LindeContinental
Nivea
1 Based on number of interviewees who know the brand
32
• Top 12 mainly consists of B-to-C brands led by Nivea (56%) and Adidas (62%)
• Adidas bought/ used by 62% of the interviewees outperforms its main competitor Puma (47%)
• Metro Cash & Carry enjoys a healthy 50% purchase rate among urban citizens
Source: globeone
Leading German brands – Purchase/usage (1/2)
Q.: Which German brands have you bought or which services have you used?
Top 12 – Leading brands with high purchase/usage rate with Nivea at the top of the ranking
– Purchase/usage of German brands in Russia (top 12) –
(676)
(619)
(605)
(542)
(529)
(503)
(471)
(466)
(404)
(336)
(282)
(266)
68%
62%
61%
54%
53%
47%
50%
Nivea
0% 20% 40% 60% 80% 100%
Adidas
Braun
Siemens
Bosch
Metro Cash & Carry
Puma
Hugo Boss
Henkel
Dr. Oetker
Becks
40%
34%
28%
27%
Bayer 47%
Sample size in Russia: 1,000
33
• Volkswagen (16%) scores highest among the German automobile producers on the purchase rate
• Lufthansa, German flagship carrier and one of the leading airlines in Europe, with currently 10% usage rate
Source: globeone
Leading German brands – Purchase/usage (2/2)
Q.: Which German brands have you bought or which services have you used?
Rank 13 - 30 – Many well-known German brands with significantly low market penetration level
– Purchase/usage of German brands in Russia (rank 13 to 30) –
Sample size in Russia: 1,000
25%25%25%
24%24%24%
19%19%
18%17%
16%16%
14%14%
13%
OsramContinental
PaulanerBoehringer-Ingelheim
GrundigHaribo
LufthansaCarl Zeiss
BASFMiele
DHLVolkswagen
AudiZwilling
AEG
HansgroheMercedes-Benz
(251)(247)(247)(240)(235)(235)
(191)(189)
(181)(173)(158)(155)
(143)(139)
(126)
(87)(82)
SAP (89)
0% 20% 40% 60% 80% 100%
9%9%8%
34
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
35
Internet as the most popular information source to learn about foreign brands
Insights into information channels – Key sources (1/2)
0% 10% 20% 30%
Shopping center / Store
Internet1
TV
Family / Friends
Events / Tradeshows
Radio
29%
19%
17%
7%
5%
5%
19%
Newspapers / Magazines
– Information sources to find out/ learn more about foreign brands in Russia–
Source: globeone
Sample size in Russia: 1,000. 1 Category Internet includes Internet search engines, social media and corporate website research. Q.: How do you generally find out/learn more about foreign brands?
36
Within digital communication, internet search engines and corporate websites are most relevant
Insights into information channels – Key sources (2/2)
– Information sources to find out/ learn more about foreign brands in Russia–
0% 10% 20% 30%
Internet search engines
TV
Shopping center / Store
Family / Friends
Events / Tradeshows
Radio
Social media
19%
5%
5%
5%
19%
Newspapers / Magazines
Corporate website
21%
17%
3%
7%
Q.: How do you generally find out/learn more about foreign brands? Sample size in Russia: 1,000
Source: globeone
37
• Executive Summary• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
38
Strategies for Russia – Leveraging maximum brand potential to grow sales (1/3)
Success in Russia requires dedicated action and a clear strategic roadmap (→ ‘one world strategy’1)
Strategic implications for corporations:
Illustrative1:1 transfer of ‘developed market’ strategies is rarely successful
Almost continental complexity of Russia as key challenge for annual strategy development and alignment of local organizations
Fact-based adjustments regarding strategic focus, relevant target groups and brand strategy necessary
Different levels of brand performance require a differentiated approach
1 A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/customer needs in BRIC at the very center of corporate strategy.
- Brand performance analysis -
Improving business performance in Russia through effective communication strategies
Source: globeone
39
Strategies for Russia – Leveraging maximum brand potential to grow sales (2/3)
Corporation with low brand awareness and thus low general brand performance across all major dimensions in Russia
- Key challenges -• Lack of fact-based ‘one-world-strategy’ for Russia• Inability to bridge gap between HQ and country
marketing / COM teams• Unclear definition of market-driven strategy and
local target groups and needs • Ineffective activation strategy & media investment
to communicate above ‘perception threshold’• Ineffective utilization of media vehicles /
insufficient media investment
25%
50%
75%
100%
0%
Corporation with high awareness but weak image as compared to Industry benchmarks in Russia
25%
50%
75%
100%
0%
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty
- Key challenges -• Under-utilization of local customer insights and
thus no ‘quick wins’• Absence of a relevant positioning adjusted to local
target group expectation (esp. prestige appeal)• Shortcomings in locally relevant storytelling• Low differentiation from key competitors/ local
hero brands in Russia• Lack of effective creative execution and media
strategy
- Brand performance in Russia -
Illustrative
Illustrative
Awareness challenge1- Brand performance in Russia -
Image challenge2
Selected strategies for Russia – Awareness & image challenges
Source: globeone
40
German roots of
the brand(s) not properly recognized in Russian target groups
- Key challenges -• Missing link to German origin of a brand • Advertising, PR, event or online activities lacking
proactive communication of German brand heritage and thus no realization of image transfer and additional price premium potential
• Lack of story telling related to brand origin & history though one of few competitive advantages that cannot be easily imitated
• No successful use of ‘educational approach’
Brand enjoys good reputation but purchase behavior and loyalty remain below Industry benchmarks in Russia
- Key challenges -• Lack of strategy addressing middle income groups
as well (e.g. brand-stretching in order to appeal to more price sensitive target customers)
• Limited number of local distribution points• Lack of implementing sequential expansion
strategies in line with regional development• Under-utilization of global CRM basics and related
systems in the local market• Lack of effective activation at POS & in social media
German origin challenge3
Activation & loyalty challenge4
Illustrative
25%
50%
75%
100%
0%
25%
50%
75%
100%
0%
Strategies for Russia – Leveraging maximum brand potential to grow sales (3/3)
Selected strategies for Russia – German origin & activation challenge
Source: globeone
- Brand performance in Russia -
- Brand performance in Russia -
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty
Illustrative
41
• About globeone• Survey Approach• Germany’s Image in Russia• Leading German Brands in Russia• Insights into Information Channels in Russia• Marketing and Communication Strategies for Russia• Contact
Agenda.
42
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