Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market

An Individual Case Study Prepared by Yanan MIAO under the Supervision of Pro. Hans MUHLBACHER for International Marketing Course T1-2011-2012
Background
Russian Standard vodka, known as Russia’s number one premium vodka brand, was founded by Roustam Tariko and initially launched in 1998. Four years later the sales of this authentic Russian premium vodka surpassed all imported premium vodkas, achieving the number one position in the premium segment with a 27% market share in its domestic market.
Brand Identity
The first truly premium Russian vodka that “Embraced the past…and inspired progress”.
Company’s Objective
Equals to the founder …show more content…

● Analysis of the success/failure factors of marketing communication policy of its competitors:
Premium Segment:
1. Absolute (owned by Swedish company): shape of the bottle + adverts (print and outdoor)+ successive cooperation with painters and jewelry designers.
2. Smirnoff (originated in Russia, mainly focused on Standard Quality segment): celebrity effects during 1960’s and 1970’s + “Cannes Golden Lion” award marketing campaign + sponsorship of films + large international student fashion competitions.
3. Stoli (the only Russia-produced vodka in the US market): distilled from superior winter wheat + pure spring water + double-distilled process.
Super-Premium Segment:
1. Grey Goose (distilled in France): charity scene + participation in 1999 Oscar ceremony + huge amount scale of print campaign. No.1 Super-Premium segment sharer.
2. Belvedere (distilled in Poland): special rye-based formula + ad campaign.
3. Sundsvall—a failure case: inability to leverage the Absolute connection + higher price + targeted for only 8 cities + discrete bottle design + failure in implementing a comprehensive bartender education plan.
● Brand Differentiation:
Premium Segment:
1. VS Absolute: After all, Absolute is a Swedish vodka. It’s not “Made in Russia”. Russian Standard vodka could emphasize its origin throughout its marketing communication activities.
2. VS Stolichnaya: