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Drive of Creation
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Development of Russian Market Entry Strategy
Service Description
ALT Research Consulting Company
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Why Enter into Russian Market?
Development of Russian market entry strategy
Russian market

• Russia has three credit ratings of investment
  level (Fitch, Moodys, SP) and the trend is
  positive
• Russian non-extractive companies show excellent
  financial statements and place their shares on
  the main foreign stock exchanges
• Russia shows growth in the living standard
• Russia is planning to join to the WTO in the
  nearest future

Fast-Growing
Large
Profitable
European market
Hit the ceiling

• Growth rates of mature European market decline
• Competition on European market grows strong

Highly competitive
Drive of Creation
ALT Research Consulting Company
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Examples of The Companies Successfully Entered on
Russian Market
Development of Russian market entry strategy
Many large multinational companies successfully
operate on Russian market for a long time.
Recently middle-sized European companies draw
their attention to Russian market. There are many
examples of European companies, which enter on
Russian market successfully. Some of them
Ehrmann yogurts first appeared on the Russian
market in 1995. By 1997 the sales in Russia
reached 100 million German marks, and the
company owners decided to launch production in
Russia. The first brick of new plant was laid in
the Ramenskoe district in September 1998. In
eight years after Russian market entry, Ehrmanns
dairy plant managed to become one of the three
leaders on the yogurt market not only in Russia,
but also in Ukraine, Belarus, and Kazakhstan,
supplying its products to all countries of the
former Soviet Union. Kingfisher is the leading
home improvement retail group in Europe and Asia.
The UK-based DIY group has (already) four stores
in Russia, trading under its Castorama brand. The
first Castorama store opened in Samara in
February 2006. Kingfisher plans to open 50 stores
in Russia over the next 10 years, with the aim of
becoming market leader in the Russian DIY
market. FM Logistic is European logistic
operator, successfully (working) on Russia(n)
market since 1994. FM Logistic manages 8
warehouses in Moscow and Leningrad regions,
Rostov, Yekaterinburg, Irkutsk, Khabarovsk and
Vladivostok, and ranks among the largest logistic
operators in Russia. TELE2 is European holding
providing a broad range of telecom services in
fixed and mobile telephony, Internet, high-speed
data network services and cable TV. Nowadays the
company has 29 million customers in 21 European
countries. In Russia TELE2 render GSM mobile
services. The first TELE2s GSM network was
launched in Irkutsk in 2003. Today TELE2 is
operating 16 regional networks in Russia.
Drive of Creation
ALT Research Consulting Company
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Possible Market Entry Strategies
Development of Russian market entry strategy
Think hard about the appropriate entry strategy
- joint venture, representative office,
greenfield investment, or acquisition. The
complexities of acquiring and building on land
might make it more appropriate for retailers or
other businesses requiring a lot of real estate,
for example, to take over a Russian
business. FINANCIAL TIMES REPORT Investing in
Russia rules of engagement for foreign
companies, Oct 11, 2005
Strategy to choose key aspects
or
Domestic partner
Independent entry
or
Export
Local production
or
Mass market
Focus
or
Premium segment
Cost leadership
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ALT Research Consulting Company
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Work Directions
Development of Russian market entry strategy
I. Industry analysis
II. Competitive analysis
III. Distribution channels analysis
IV. Market entry strategy
Market volume and tendencies
Business-models of market leaders
Main features of distribution channels
Market entry options
Negotiations with potential partners and industry
experts
Brand portfolio
Customers characteristics, segments and niches
Benchmarking of main business indicators and
business-processes
Competitors' products features
Market structure
Positioning and pricing
Sales geography analysis
Profitability and volume of investments estimate
Distribution and promotion
Market threats estimate
Competitive risks estimate
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ALT Research Consulting Company
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What Does Client Get as Result of The Project?
Development of Russian market entry strategy
Market Entry Strategy
Contacts with potential partners and clients
Plan of actions to enter to a Russian market
Distribution channels
Russian market understanding risk reduction
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ALT Research Consulting Company
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Our Network in Russia
Development of Russian market entry strategy
Investment funds
Government institutions
Industry associations
Our partners in Russia
Consulting companies
Research companies
Entrepreneurial clubs
Drive of Creation
ALT Research Consulting Company
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International partners
Development of Russian market entry strategy
In order to offer (our) client the best ideas and
decisions, we study the worlds best industry
practice and invite foreign experts to our
projects. Cooperation with the foreign companies
and experts allows us to get well-grounded
viewpoint on problem we solve, and to use new
knowledge and competences of our partners. ALT
RC maintains close relations with a number of
the international consulting companies and
private experts.
Technology Market Strategies. International
consulting company, specialized in research,
strategic consulting and market analysis of
developing countries (Asia and Eastern Europe).
Weve carry out a great number of co-projects
with colleagues from Technology Market
Strategies for companies such as SUEK
(Sibirskaya Ugolnaya Energeticheskaya
Kompanija), Silovije mashini,
Brok-Invest-Service, Russian Federal Nuclear
Center VNIIEF. Dürr is one of leading world
suppliers of systems, services and production for
motor industry. In cooperation with experts of
company Dürr were making a project of
development a strategy and technological
structure for company AgroEvroSoyuz. Management
Consulting Network (MACONET). The Eastern
European association of consulting companies. ALT
RC (maintains) close mutual relations with
members of MACONET, in particular with the
largest Eastern European consulting company " AAM
Management Information Consultant Ltd. ",
specializing on IT and management consulting.
The Coverdale International Group. The
international training and consulting company.
The group includes consulting and training
companies in Russia, Austria, the Great Britain,
Germany, the USA, Czech Republic and Switzerland.
Cooperation (of) ALT RC and Coverdale actively
develops in sphere of trainings and sessions for
proprietors and top-managers. FEACO is European
Federation of Management Consultancies
Association, the umbrella organization for 23
national management consultancies associations.
There are no Russian association in this
federation, but ALT RC collaborate with FEACO
and head Russian association, which plans to
become FEACO member.
MACONET
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ALT Research Consulting Company
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Some of international projects
Development of Russian market entry strategy
Analysis of Russian market of trucks and of
prospects of key segments development on this
market for company Volvo Truck Analysis of
Russian market of industrial diesel engines for
company Volvo Penta AB Market research of
energy-saving technologies market in Russia for
the European Bank for Reconstruction and
Development. (in cooperation with English
consulting company AEA Technology - leading
international advisers in the field of power and
ecologies of policy. Examination of market
strategy and operational efficiency of Company "
Vyso" for the European Bank for Reconstruction
and Development. ( in cooperation with Technology
Market Strategies) The analysis of tendencies,
structure and business-models of European and US
logistic companies within the development of
strategy for company Asstra Associated Traffic
AG Feasibility report of x-ray diagnostic
installations manufacture for a company
Ravenstvo" - joint manufacture with Siemens
AG The analysis of pricing strategies of the
European brick manufacturers within the project
for " Pobeda LSR The analysis and search of
the perspective markets of plywood in the EU
countries, the USA and Japan within the project
for " United Panel Group" The strategy of an
entry to the European market of linen fabrics and
bed-clothes for company " Dominion The
analysis of tendencies, structure and
business-models of the European market of lady's
clothes for " Melon Fashion Group
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ALT Research Consulting Company
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Industry Experience
Development of Russian market entry strategy
Aerospace industry
Petroleum and chemical industry
Construction and constructional materials
Textile and apparel industry
Food industry
Forestry and woodworking industry
Retail
Automotive industry
Extractive and metallurgy industry
Distribution and logistics
Machinery
Engineering
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ALT Research Consulting Company
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Our Russian clients
Development of Russian market entry strategy
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ALT Research Consulting Company
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THANK YOU FOR YOUR ATTENTION!
Development of Russian market entry strategy
www.altrc.ru
Drive of Creation
ALT Research Consulting Company