Pioneer in Direct Marketing on Russian Market
Prepared by Rodion Kalmykov – European Business School
S00803310
Contents
Pioneer in Direct Marketing on Russian Market 1
1. Background 3
2. Marketing Environment and industry dynamics 3
Year 2004. Direct marketing in action. 5
3. What has been done good 6
4. What might be done better 6
1. Background
Splat Cosmetics is a Russian company that was registered in 2000. It was a critical moment for Russian Economy. After the collapse of the USSR, Rouble devaluation in 1998 and total anarchy in government regulation, manufacturing continued to exist only as a large enterprises just privatized from the government. Year 2000 is a critical moment, when some sort stability appeared on the market, when prices on raw materials like gas and oil went up and all these factors supported the idea of foundation Russian company that will supply growing consumer’s needs in personal hygiene. Actually, Splat Cosmetics produces pharmaceuticals and cosmetic products with wide range of different trademarks but their main product always was Toothpaste.
2. Marketing Environment and industry dynamics
5 C’s Analysis
1st C determines Customers.
I will combine it with the Context analysis. As I’ve said before, Russia in 2000 was literally ruined after all that happened with it over the last decade. It was only slowly transitioning from Government-ruled economy to capitalism. There were no clear understanding in minds of people what is marketing and how to determine whether product is good or not. Because until 90th there were no choice on the market, there was only one product in each category, that was only in different sizes and sometimes even different colours. So when MNE entered Russian market in 90th, they overwhelmed Russian customers with their packing, their advertisement, their quality. There were few or no goods, produced in Russia, that would compete with their foreign rivals. In 2003, when Splat