russian market entry strategy 28 08 (2)
TRANSCRIPT
Драйв созидания
Исследовательско-консультационная фирма «АЛЬТ»
«Разработка стратегии» Описание услуги
Драйв созидания
«Development of Russian Market Entry Strategy»Service Description
Drive of Creation
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Why Enter into Russian Market? Development of Russian market entry strategy
Drive of Creation
Fast-Growing
Large
Profitable
Hit the ceiling
Highly competitive
Russian market
European market
ALT Research & Consulting Company
• Growth rates of mature European market decline• Competition on European market grows strong
• Russia has three credit ratings of investment level (Fitch, Moody’s, S&P) and the trend is positive• Russian non-extractive companies show excellent financial statements and place their shares on the main foreign stock exchanges• Russia shows growth in the living standard • Russia is planning to join to the WTO in the nearest future
Исследовательско-консультационная фирма «АЛЬТ»
Examples of The Companies Successfully Entered on Russian Market
Development of Russian market entry strategy
Drive of Creation
Ehrmann yogurts first appeared on the Russian market in 1995. By 1997 the sales in Russia reached 100 million German marks, and the company owners decided to launch production in Russia. The first brick of new plant was laid in the Ramenskoe district in September 1998. In eight years after Russian market entry, Ehrmann’s dairy plant managed to become one of the three leaders on the yogurt market not only in Russia, but also in Ukraine, Belarus, and Kazakhstan, supplying its products to all countries of the former Soviet Union.
Kingfisher is the leading home improvement retail group in Europe and Asia. The UK-based DIY group has (already) four stores in Russia, trading under its Castorama brand. The first Castorama store opened in Samara in February 2006. Kingfisher plans to open 50 stores in Russia over the next 10 years, with the aim of becoming market leader in the Russian DIY market.
FM Logistic is European logistic operator, successfully (working) on Russia(n) market since 1994. FM Logistic manages 8 warehouses in Moscow and Leningrad regions, Rostov, Yekaterinburg, Irkutsk, Khabarovsk and Vladivostok, and ranks among the largest logistic operators in Russia.
TELE2 is European holding providing a broad range of telecom services in fixed and mobile telephony, Internet, high-speed data network services and cable TV. Nowadays the company has 29 million customers in 21 European countries. In Russia TELE2 render GSM mobile services. The first TELE2’s GSM network was launched in Irkutsk in 2003. Today TELE2 is operating 16 regional networks in Russia.
Many large multinational companies successfully operate on Russian market for a long time. Recently middle-sized European companies draw their attention to Russian market. There are many examples of European companies, which enter on Russian market successfully. Some of them:
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Possible Market Entry Strategies Development of Russian market entry strategy
Strategy to choose: key aspects
Export
Cost leadership
Mass market
Independent entry
Drive of Creation
Domestic partner
Local production
Focus
Premium segment
or
or
or
or
“Think hard about the appropriate entry strategy - joint venture, representative office, greenfield investment, or acquisition. The complexities of acquiring and building on land might make it more appropriate for retailers or other businesses requiring a lot of real estate, for example, to take over a Russian business.“FINANCIAL TIMES REPORT “Investing in Russia: rules of engagement for foreign companies”, Oct 11, 2005
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Work Directions Development of Russian market entry strategy
Market volume and tendencies
I. Industry analysis
Customers characteristics, segments
and niches
Market structure
Business-models of market leaders
II. Competitive analysis
Competitors' products features
Benchmarking of main business indicators and
business-processes
Main features of distribution channels
III. Distribution channels analysis
Negotiations with potential partners and
industry experts
Profitability and volume of investments estimate
IV. Market entry strategy
Market entry options
Brand portfolio
Positioning and pricing
Distribution and promotion
Drive of Creation
Market threats estimate Competitive risks estimate
Sales geography analysis
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
What Does Client Get as Result of The Project?
Market Entry Strategy
Contacts with potential partners and clients
Russian market understanding & risk
reduction
Plan of actions to enter to a Russian market
Development of Russian market entry strategy
Distribution channels
Drive of Creation
Well-grounded sales forecast
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Our Network in Russia Development of Russian market entry strategy
Drive of Creation
Our partners
in Russia
Government institutions
Entrepreneurial clubs
Investment funds
Consultingcompanies
Business associations
Industry associations
Past and present clients
ALT Research & Consulting Company
Research companies
Исследовательско-консультационная фирма «АЛЬТ»
International partners Development of Russian market entry strategy
In order to offer (our) client the best ideas and decisions, we study the world’s best industry practice and invite foreign experts to our projects. Cooperation with the foreign companies and experts allows us to get well-grounded viewpoint on problem we solve, and to use new knowledge and competences of our partners. ALT R&C maintains close relations with a number of the international consulting companies and private experts.
MACONET
Technology Market Strategies. International consulting company, specialized in research, strategic consulting and market analysis of developing countries (Asia and Eastern Europe). We’ve carry out a great number of co-projects with colleagues from «Technology Market Strategies» for companies such as “SUEK” (“Sibirskaya Ugolnaya Energeticheskaya Kompanija”), “Silovije mashini”, “Brok-Invest-Service”, Russian Federal Nuclear Center – VNIIEF.
Dürr is one of leading world suppliers of systems, services and production for motor industry. In cooperation with experts of company Dürr we’re making a project of development a strategy and technological structure for company “AgroEvroSoyuz”.
Management Consulting Network (MACONET). The Eastern European association of consulting companies. ALT R&C (maintains) close mutual relations with members of MACONET, in particular with the largest Eastern European consulting company " AAM Management Information Consultant Ltd. ", specializing on IT and management consulting.
The Coverdale International Group. The international training and consulting company. The group includes consulting and training companies in Russia, Austria, the Great Britain, Germany, the USA, Czech Republic and Switzerland. Cooperation (of) ALT R&C and Coverdale actively develops in sphere of trainings and sessions for proprietors and top-managers.
FEACO is European Federation of Management Consultancies Association, the umbrella organization for 23 national management consultancies associations. There are no Russian association in this federation, but ALT R&C collaborate with FEACO and head Russian association, which plans to become FEACO member.
Drive of Creation
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Some of international projects
Analysis of Russian market of trucks and of prospects of key segments development on this market for company “Volvo Truck”
Analysis of Russian market of industrial diesel engines for company “Volvo Penta AB”
Market research of energy-saving technologies market in Russia for the European Bank for Reconstruction and Development. (in cooperation with English consulting company AEA Technology - leading international advisers in the field of power and ecologies of policy.
Examination of market strategy and operational efficiency of Company " Vyso" for the European Bank for Reconstruction and Development. ( in cooperation with Technology Market Strategies)
The analysis of tendencies, structure and business-models of European and US logistic companies within the development of strategy for company “Asstra – Associated Traffic AG”
Feasibility report of x-ray diagnostic installations manufacture for a company “Ravenstvo" - joint manufacture with Siemens AG
The analysis of pricing strategies of the European brick manufacturers within the project for " Pobeda LSR “
The analysis and search of the perspective markets of plywood in the EU countries, the USA and Japan within the project for " United Panel Group"
The strategy of an entry to the European market of linen fabrics and bed-clothes for company " Dominion “
The analysis of tendencies, structure and business-models of the European market of lady's clothes for " Melon Fashion Group “
Drive of Creation
Development of Russian market entry strategy
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Aerospace industry
Industry Experience
Drive of Creation
Development of Russian market entry strategy
Food industry Textile and apparel
industry
Automotive industry Retail
Distribution and logistics
Machinery
Construction and constructional
materials
Forestry and woodworking industry
Extractive and metallurgy industry
Engineering
Petroleum and chemical industry
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Our Russian clients
Драйв созидания
Development of Russian market entry strategy
ALT Research & Consulting Company
Исследовательско-консультационная фирма «АЛЬТ»
Drive of Creation
199106, Saint-Petersburg, V.O., 21st line, 8.
Tel: 7-812-324-87-31Fax: 7-812-324-88-39
E-mail: [email protected]
115114, Moscow, Derbenevskaya str., 1/2, bldng. 1
Tel: 7-495-788-59-29 Fax: 7-495-788-59-29
E-mail: [email protected]
www.altrc.ru
THANK YOU FOR YOUR ATTENTION! Development of Russian market entry strategy
ALT Research & Consulting Company