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".
[...] Grey goose illustrates well this advertising refusal in investing only 1million dollars of printed advertising in 2000. 11 IV. REFERENCES BASE www.themanager.org/pdf/p5f.pdf (2001), ‘Porter 5 Forces', Recklies Management Project GmbH http://www.msnbc.msn.com/id/13350034/, (June 15th, 2006)‘Jay-Z launches Cristal bubbly boycott' Dennis Gilbert, (2002) The American Class Structure: A New Synthesis. http://money.cnn.com/2002/01/30/economy/economy/ (January 30th, 2002), ‘U.S. GDP grew in 4Q'. Vadim Gregorian (Insead 2000), ‘Russian standard Vodka: Strategies for global branding and expansion into the US market Hans Mühlbacher et al. (2006), ‘International Marketing: A global perspective' Third Edition. [...]
[...] 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". The major threat of this market is that as all the trendy effect, it can disappear as fast as it appears. Who was the case for Champagne, extend by the famous rapper Jay-z in the USA by his video-clip, he decided in 2006, after an interview of Roderer's CEO, to boycott the champagne, that's stopped this trendy effect. [...]
[...] 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. [...]
[...] A Russian heritage, that dribs and drabs, enter the whole Europe countries. R. Tariko, pioneer of the supply/demand of alcoholic beverage in Russia, wish of creating a worldwide brand, would inevitably go through developing its first product (Vodka) and entry the United States market. As Sundsvall case illustrated “In the US you get one chance to succeed, not two”; introducing a product in the US require previous studies to assess a successful market entry. 3 I. POSITIONING OF THE FIRM IN THE US LOCAL MARKET A. Assessment of the company and its resources The SWOT analysis would help us to identify the strengths and weaknesses of the internal factors related to our company and its product that we want to introduce in the United States market, then the external factor that would help Russian Standard to export their product or damage or slow down their main objective of US entry. [...]
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