Essentuki for the World

Perception of the country of origin overseas is a very important factor of the internationalization process of a brand. If the perception is not positive, a company has to struggle a lot and put out extra efforts in order to achieve its goals. Thus it can be concluded that the biggest commercial success can be expected from internationalization of a brand which, while being Russian, has positive connotations for target audience overseas.

Taking this into account we can make several conclusions. The first one is that the possible outcome of internationalization of food industry brands proposed by the interviewees in videos is not evident at all as we cannot confidently define attitude of foreigners towards Russian food products. Here we will need thorough and comprehensive market research of credibility of Russian food brands abroad.

We believe that the best brand for internationalization of those which have not already been internationalized is the one which was proposed by Ilya, namely Essentuki.

This product seems rather attractive for potential customers abroad. The fact that it is made in Russia can yield both negative and positive effect. However, with this product, the place of origin is more important than the country at large since the location, a famous Russian water spring resort, signal high quality of the water. Its “good for health” image can be used successfully, especially in health and environment conscious Western European and North American markets.

Therefore, we can propose two variants of a product for a market: “regular” mineral water and special medicinal water which not only will taste good but will also be better for one’s health. 

Essentuki bottle should be modified in order to make it look more modern. Furthermore, in order to increase customer awareness, we should add specified description of health features of Essentuki on its label.

The price of Essentuki should be based on the assumption that it would be consumed mostly by upper social class conscious of its health. Thus the price for one 0.33L (11 oz) bottle can be set at the level of 2€ ($2.75) whereas the price of one 0.33L (11 oz) bottle of Vittel is 1.5€ ($2.07).

When deciding on what markets to enter, we would advise against entering those markets where the word "Russian" may have negative connotations: in this manner, Eastern Europe does not seem to be an attractive market for us. Western European market is seen to be more profitable, although Essentuki will face serious competition there. The main factor that would influence the entry into the Western European market is the aforementioned significant customer focus on health issues. It would be advisable to enter one national market and then proceed with other countries one by one. Probably the best market to enter first would be the British market.

Essentuki should be promoted not just as mineral water but as a very healthy product. Thus the first thing we need to do is to increase customer awareness. For this purpose we can use promo-stands with bottles and pamphlets with description of how this water is good for one's health. We also need to use paper advertising in magazines on the corresponding subject field. Moreover, we can use event management to promote Essentuki abroad. As an example, we can propose serving Essentuki at Russian fashion weeks. Sponsoring health-related programs is also advisable.

With proper effort and some luck, Essentuki could become the underdog that would eventually become one of the leaders of global purified water market.

Essentuki, Caucasus region, Russia

Lukoil and Gazprom vs. Teremok and Sochi

The interviews conducted revealed several intriguing trends and directions as to what industries “the best Russian Brand for the world” may come from. First of all, gas and oil producers were named, followed by airlines, a well-known alcoholic beverage brand, a mineral water producer, food brands and a destination brand (Sochi). In fact, Sochi is the only Russian destination brand that was admitted to have any potential as a global resort because of its great competitive advantage: it is the location of the next Winter Olympics.

It is worth noting that the most frequently mentioned brands that respondents considered to be likely to succeed in global expansion have already gone international and are quite powerful – such as Gazprom, Lukoil, Aeroflot and Russian Standard. All these huge organizations were chosen because of impressive possibilities of internal investment in their global branding activities and international logistics.

In contrast to the “national” brands, some of the Russian companies mentioned by respondents are powerful and internationally accepted companies with high level of brand awareness and don’t need connotations with Russia. Among the companies that be successful without any support of their 'origins' are Gazprom, Lukoil and Baltika, for example.

Interviewees also insisted on the opportunity to cream on the country of origin effect. Such brands as Russian Standard, Teremok, Talosto and Essentuki have a fair chance of becoming successful representatives of Russian cultural myths, superstitions and traditions all over the world; taking into account that these perceptions are quite strong and popular, country of origin may become a handy resource in global marketing strategy for Russian brands.

Alia says Lukoil

"I think that the best for the world is Lukoil, I mean among Russian brands. Because it's quite famous besides it is said that it is environmentally friendly and everybody needs oil. I guess that's it."

Anya says Lukoil

Anya says "Russia is globally known as oil exporter, and the biggest oil companies to my mind are Lukoil and Gazprom [Neft’], and the most famous, I think, is Lukoil. So Lukoil is already an international brand and it operates in many countries all over the world. Lukoil is associated with a huge type of organization and with financial [stability]."

Natasha says Pelmeni

Natasha says "Hi! I think that in Scandinavia people are really keen on food which is ready to cook, for example frozen food which is just heated or boiled. So I would say that Russian brand of pelmeni, like Talosto or another one, could really use it as an advantage and promote Russian cuisine or style."

Sergey says Gazprom and Sochi

"Hello I have a question which Russian brands are best for the world and why. I think Gazprom and Sochi are the best Russian brands nowadays in the world. Gazprom cuz it's huge world company which produces natural gas and Sochi cuz it's the capital of Olympic games in 2014. Thank you"

Ilya says Essentuki

"I'd say Essentuki mineral water. You know, this brand remains unknown to the world in general. However, becoming a respected high profile company is not easy. Just imagine a big event where neither Perrier nor Vittel will be served but Essentuki. Sounds unusual, doesn't it? So I believe in order to promote this brand the company needs effective logistics, efficient management. Cutting costs is essential, too. And of course put some stress on how good drinking this water is for one's health as well as environmental issues ... and who knows if this strategy could be implemented. Why not? This brand can become very famous and sales can be very high"

Artem says Baltika

"Hello everyone, my name is Artem.
To my mind, one of the most interesting Russian brands is Baltika. It’s a huge brewing company founded in St.-Petersburg. It sells beer all over the world. For example, in England Baltika is a kind of premium brand and is very popular there. Baltika beer is tasty, and many people share this opinion with me."

Anton says Russian Standard

"Hi! My name is Anton. I suppose, that Russian Standard is one of the most famous Russian alcohol brands famous all over the world – it is exported to many European countries, and this brand is also well-known in many foreign bars and restaurants. This company has a strong advertising campaign to support its brand power, and it has a reputation of the highest quality product. Moreover, Russian standard owns exclusive rights for running the “Miss Russia” beauty competition."

Julia says Teremok

Julia says "Hi! The best brand for the world is Teremok, Russian blini, and internationally everyone would love it. And it would be a good profit for Russia."

Natasha says Gazprom

Natasha says "I think that the best Russian brand is Gazprom because it's a well-known company already and the name is easy to remember."

Jared says Aeroflot

Jared says "I fly Aeroflot because they get me where I need to go, because they get me there cheaply, and because of their outstanding dedication to providing all passengers with quality puke bags. Fly Aeroflot. Fly baggage-free."