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Russian Standard Vodka - Market Analysis: Target Analysis

Autor:   •  November 3, 2013  •  Case Study  •  2,634 Words (11 Pages)  •  1,869 Views

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Market analysis: Target analysis

The target in the US would be quite different of the Russian one. In fact, people consume Vodka in the US primarily in groups, on premise or during parties while Russians' consumption is home-based, usually during meals. The other difference with the Russian market is that Americans aim to associate Vodka with other beverages for a sweater taste while in Russia, it is common to drink it straight. The US premium vodka market segments are similar to the Russian ones, however concerning the type of consumers, the proportion of "strivers" is more important in the US, caused by the habit of consuming Vodka in groups. Thus, the main targets in the US are consumers oriented to image and prestige. Then, thanks to the high level of wages on the US market, the company can reach a wider target, by focussing on males and females with medium, medium/high and high incomes and aged from 21 to 45.

Competition analysis

The global strategy of Russian Standard Vodka leads us to analyse the competitors in two particular segments, the Premium and the super-premium. - Competitors' success factors Absolut, Stolichnaya, Skyy, Ketel One and Smirnoff dominate the Premium segment. Absolut is the major competitor in the premium segment, with a representation of 47.3% in 2000. Their success in this segment was primarily based on the efforts made to create a "cultural phenomenon" by using original packaging's, making groundbreaking advertising campaigns, associating the brand to finer things such as art and fashion and finally by creating successful flavoured line extensions. The number two of the segment is Stolichnaya with 14.9% of the segment shares. It is the only Vodka of the US market that is actually produced in Russia and has a clear Russian/Soviet heritage, main reason of its success. Stolichnaya is closely followed by Skyy, for which success can be attributed to its distinctive packaging and its lower price. Ketel one handle 10% of the premium segment thanks mainly to its product position between the premium and super-premium segments and its traditional image. In fact they propose a Vodka with subtle distinctions in taste and production at a price a bit higher than those applied in the premium segment. Within the super-premium segment, the French Grey Goose is leader with almost half of the shares of the segment, and the polish Belvedere is second with almost the quarter. Grey goose is the leader thanks to its creative world-of-mouth marketing within the celebrity world and its excellent communication regarding the quality of their Vodka - association with very good restaurants. Belvedere leans on a high quality of production and a rye based formula to hold its second position within the segment.

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Hassan BOURGI – International marketing Success factors

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