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