international marketing

4

International Marketing

This report aims to extend the previous country report on Russia. It also aims to provide a deeper understanding of the Russian automotive market.

Source: https://data.oecd.org/russian-federation.htm

Wayland (2022) reports that throughout the previous three years (2019- 2022), the Russian automobile market had 1.6 million to 1.75 million yearly unit sales. The car industry anticipated that Russia would emerge as a key automotive market and a center for expanding into other countries, such as Europe. However, during the past few years, the nation's economic stagnation and instability have significantly decreased its market-led viability.

According to Markus (2022), the already restricted global automotive supply chain was impacted by recent U.S. sanctions and Moscow's invasion of Ukraine. However, according to Wayland (2022), only a few manufacturers have significant exposure in Russia.

There are benefits and drawbacks to entering the Russian automobile industry. Russia presents an appealing setting due to its large GDP and diversified population, but political and cultural quirks call for extensive research. An effective market entry plan requires a deep awareness of the legal, cultural, economic, and demographic characteristics of the market. Businesses may capitalize on the enormous potential of the Russian motor vehicle industry by considering the demands and preferences of Russian consumers and taking geopolitical considerations into account. In addition, to gain a deeper comprehension of the market in Russia and calculate market demand, the report enhances our understanding of the market.

The figure below highlights the sales volume.

Source: https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-russia-by-month

According to Fortune, over the projection period of 2021–2028, the Russian commercial vehicle market is expected to rise at a compound annual growth rate (CAGR) of 3.1%, from $9.14 billion in 2021 to $11.31 billion in 2028. With a GDP of over $1.47 trillion, Russia has significant purchasing power and a market with profit potential. With a GDP per capita of around $12,194.78, sales of premium cars may be supported by the market. Given its high GDP and per capita income, Russia may have an extensive automobile market. Consumer preferences, affected by rugged terrain and a need for durability, favor strong cars. SPER's market research report titled "Russian Electric Cars Market Size” describes that with a 1.1% CAGR, the Russia electric vehicle market is expected to reach billions by 2033.

The global automotive sector is undergoing one of the biggest technological revolutions. In 2023, car sales in Russia increased by 148.6% year over year, continuing to recover from a severe decline in 2022, according to an analytical agency. The automotive sector in Russia was highly dependent on foreign capital, machinery, and components. Sales fell by 59% in 2022 because of the Western sanctions imposed in response to Russia's invasion of Ukraine, and several international automakers withdrew from the nation.

Estimating market demand for automotive in Russia using market research involves a detailed analysis of available data sources, industry reports, and economic indicators. Secondary research, competitor analysis, economic analysis, demographic analysis, consumer behavior analysis, segmentation based on demographic and behavioral data, competitive positioning, market trends, and SWOT Analysis will help Calculate the estimated market size based on the number of potential customers within your target segments.

Based on market research and data analysis, the estimated market demand for automobiles in Russia is approximately 2.5 to 3 million vehicles annually. This range accounts for various factors, including economic conditions, consumer preferences, and competition in the Russian automotive market. The report needs to compile information on Russia's annual car sales during the last several years.

To estimate the market demand for automobiles. We utilize consumer data in industry reports to analyze the frequency and kind of automotive purchases made by customers. Additionally, we can examine economic factors to see how they affect the demand for cars, such as GDP growth, disposable income, and consumer attitude. The research indicates that the yearly market demand for vehicles will fluctuate based on the state of the economy.

Country-as-Segments

Creating country segments helps us identify similarities in markets.

Segment 1: Russia (Chosen Country)

· Kazakhstan

· Belarus

These countries share geographical proximity and have a similar preference for durable and all-terrain vehicles, making them a relevant segment.

Segment 2: United States (Home Country)

· Canada

· Germany

This segment is based on common language and cultural affinity, making it relevant for marketing Russian automobiles to English-speaking consumers.

Typical Consumer Persona

Demographics:

· Age: 30-55 years

· Gender: Both male and female

· Income: Middle to upper-middle class

Psychographics:

· Values durability and all-terrain capabilities in automobiles

· Prefers vehicles suitable for harsh weather conditions

· Appreciates safety features and spacious interiors

Behavioral Information:

· Regularly purchases cars, with a preference for rugged and reliable brands

· Relies on online research and expert reviews before making a purchase

· Enjoys outdoor activities and family road trips

Market Relevance: This consumer segment is relevant in Russia and the United States. The emphasis on durability, safety, and reliability aligns with global automobile consumer preferences.

The country report on the automobile market in Russia has been expanded and improved, providing insightful information. Businesses may create successful marketing strategies for joining and prospering in the Russian automotive industry by being thoroughly aware of customer preferences, market demand, and country-specific market segmentation (HERRERO & Xu, 2019). Due to its large geography and challenging terrain, Russia is a distinct market that favors rugged and dependable cars.

Several elements, such as historical data, economic indicators, consumer behavior, and competitive analysis, must be considered when estimating the market demand for vehicles in Russia. We can take the factors into account the to give a credible estimate.

References

HERRERO, A. G., & Xu, J. (2019). How does China fare in the Russian market? Implications for the European Union. JSTOR Security Studies Collection. https://www.jstor.org/stable/pdf/resrep28516.pdf?acceptTC=true&coverpage=false&addFooter=false

Markus, S. (2022). Long-term business implications of Russia’s war in Ukraine.  Asian Business & Management,  21(4), 483-487. https://link.springer.com/article/10.1057/s41291-022-00181-7

Russia - Flash report, automotive sales volume, 2023 - MarkLines automotive industry Portal. (n.d.). Automotive Industry Portal MarkLines | Portal.  https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-russia-by-month

Russia commercial vehicle market size, growth & report, 2028. (n.d.). Fortune Business Insights™ | Global Market Research Reports & Consulting. https://www.fortunebusinessinsights.com/russia-commercial-vehicle-market-106318

Russian car sales Jump in September as Chinese brands expand market share. (2023, October 4). Reuters.  https://www.reuters.com/business/autos-transportation/russian-car-sales-jump-september-chinese-brands-expand-market-share-2023-10-04/

Wayland, M. (2022). Renault, Hyundai, and VW have the most exposure to the Russian car market. CNBC. https://www.cnbc.com/2022/02/25/renault-hyundai-and-vw-have-most-exposure-to-russian-car-market.html

Addendum

The Assignment requirements

For this assignment, you are using the information contained in your country report and briefly proposing a marketing plan for your chosen product based on it.

Include country report #3 at the start of your submission. This will be a simple copy-paste, and missing this entirely will affect your grade, but otherwise the section will not be graded again. The one exception is if you did not obtain a passing grade (70% or better) in Country report #3, in which case you may resubmit it here to achieve the learning objective.

Write a short (approx. 2 pages) executive summary for a marketing plan to enter the chosen country with your product or service. In this write-up, cite your own country report as often as necessary, using the hard data and insight collected there to suggest and justify your plans. At the very least, your marketing plan must explain.

· Mode of entry into the country. Acknowledge the advantages and disadvantages of this method, but justify how your chosen mode is the best given the information in your report (barriers to trade, uncontrollable environment forces, culture).

· Segmentation. Which consumer segment you are targeting within the new country, and where this segment fits into a hypothetical bigger international marketing segmentation (aggregate or disaggregate segmentation, etc.)

· Product. Necessary adaptations (if any) to the product based on legal, cultural, economic reasons.

· Price. Suggested price. Make sure to relate it to the local currency and to one indicator of local prices such as the Big Mac Index or the local price of a comparable product in the country.

· Place. Distribution and logistics recommendations for the product based on the country report.

· Promotion. Necessary adaptations based on legal, media, linguistic, economic or cultural differences. Suggest one symbol, value, ritual or tradition to be used by advertising. You may choose one marketing appeal or a change in values, as described in the Marketing Mix module.

The challenge of this assignment is in turning the information in your country report into specific recommendations. You will be graded on how well you use knowledge about a culture to craft specific market-entry and marketing strategies.

4

International Marketing

This report aims to extend the previous country report on Russia. It also aims to provide a deeper understanding of the Russian automotive market.

Source: https://data.oecd.org/russian-federation.htm

Wayland (2022) reports that throughout the previous three years (2019- 2022), the Russian automobile market had 1.6 million to 1.75 million yearly unit sales. The car industry anticipated that Russia would emerge as a key automotive market and a center for expanding into other countries, such as Europe. However, during the past few years, the nation's economic stagnation and instability have significantly decreased its market-led viability.

According to Markus (2022), the already restricted global automotive supply chain was impacted by recent U.S. sanctions and Moscow's invasion of Ukraine. However, according to Wayland (2022), only a few manufacturers have significant exposure in Russia.

There are benefits and drawbacks to entering the Russian automobile industry. Russia presents an appealing setting due to its large GDP and diversified population, but political and cultural quirks call for extensive research. An effective market entry plan requires a deep awareness of the legal, cultural, economic, and demographic characteristics of the market. Businesses may capitalize on the enormous potential of the Russian motor vehicle industry by considering the demands and preferences of Russian consumers and taking geopolitical considerations into account. In addition, to gain a deeper comprehension of the market in Russia and calculate market demand, the report enhances our understanding of the market.

The figure below highlights the sales volume.

Source: https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-russia-by-month

According to Fortune, over the projection period of 2021–2028, the Russian commercial vehicle market is expected to rise at a compound annual growth rate (CAGR) of 3.1%, from $9.14 billion in 2021 to $11.31 billion in 2028. With a GDP of over $1.47 trillion, Russia has significant purchasing power and a market with profit potential. With a GDP per capita of around $12,194.78, sales of premium cars may be supported by the market. Given its high GDP and per capita income, Russia may have an extensive automobile market. Consumer preferences, affected by rugged terrain and a need for durability, favor strong cars. SPER's market research report titled "Russian Electric Cars Market Size” describes that with a 1.1% CAGR, the Russia electric vehicle market is expected to reach billions by 2033.

The global automotive sector is undergoing one of the biggest technological revolutions. In 2023, car sales in Russia increased by 148.6% year over year, continuing to recover from a severe decline in 2022, according to an analytical agency. The automotive sector in Russia was highly dependent on foreign capital, machinery, and components. Sales fell by 59% in 2022 because of the Western sanctions imposed in response to Russia's invasion of Ukraine, and several international automakers withdrew from the nation.

Estimating market demand for automotive in Russia using market research involves a detailed analysis of available data sources, industry reports, and economic indicators. Secondary research, competitor analysis, economic analysis, demographic analysis, consumer behavior analysis, segmentation based on demographic and behavioral data, competitive positioning, market trends, and SWOT Analysis will help Calculate the estimated market size based on the number of potential customers within your target segments.

Based on market research and data analysis, the estimated market demand for automobiles in Russia is approximately 2.5 to 3 million vehicles annually. This range accounts for various factors, including economic conditions, consumer preferences, and competition in the Russian automotive market. The report needs to compile information on Russia's annual car sales during the last several years.

To estimate the market demand for automobiles. We utilize consumer data in industry reports to analyze the frequency and kind of automotive purchases made by customers. Additionally, we can examine economic factors to see how they affect the demand for cars, such as GDP growth, disposable income, and consumer attitude. The research indicates that the yearly market demand for vehicles will fluctuate based on the state of the economy.

Country-as-Segments

Creating country segments helps us identify similarities in markets.

Segment 1: Russia (Chosen Country)

· Kazakhstan

· Belarus

These countries share geographical proximity and have a similar preference for durable and all-terrain vehicles, making them a relevant segment.

Segment 2: United States (Home Country)

· Canada

· Germany

This segment is based on common language and cultural affinity, making it relevant for marketing Russian automobiles to English-speaking consumers.

Typical Consumer Persona

Demographics:

· Age: 30-55 years

· Gender: Both male and female

· Income: Middle to upper-middle class

Psychographics:

· Values durability and all-terrain capabilities in automobiles

· Prefers vehicles suitable for harsh weather conditions

· Appreciates safety features and spacious interiors

Behavioral Information:

· Regularly purchases cars, with a preference for rugged and reliable brands

· Relies on online research and expert reviews before making a purchase

· Enjoys outdoor activities and family road trips

Market Relevance: This consumer segment is relevant in Russia and the United States. The emphasis on durability, safety, and reliability aligns with global automobile consumer preferences.

The country report on the automobile market in Russia has been expanded and improved, providing insightful information. Businesses may create successful marketing strategies for joining and prospering in the Russian automotive industry by being thoroughly aware of customer preferences, market demand, and country-specific market segmentation (HERRERO & Xu, 2019). Due to its large geography and challenging terrain, Russia is a distinct market that favors rugged and dependable cars.

Several elements, such as historical data, economic indicators, consumer behavior, and competitive analysis, must be considered when estimating the market demand for vehicles in Russia. We can take the factors into account the to give a credible estimate.

References

HERRERO, A. G., & Xu, J. (2019). How does China fare in the Russian market? Implications for the European Union. JSTOR Security Studies Collection. https://www.jstor.org/stable/pdf/resrep28516.pdf?acceptTC=true&coverpage=false&addFooter=false

Markus, S. (2022). Long-term business implications of Russia’s war in Ukraine.  Asian Business & Management,  21(4), 483-487. https://link.springer.com/article/10.1057/s41291-022-00181-7

Russia - Flash report, automotive sales volume, 2023 - MarkLines automotive industry Portal. (n.d.). Automotive Industry Portal MarkLines | Portal.  https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-russia-by-month

Russia commercial vehicle market size, growth & report, 2028. (n.d.). Fortune Business Insights™ | Global Market Research Reports & Consulting. https://www.fortunebusinessinsights.com/russia-commercial-vehicle-market-106318

Russian car sales Jump in September as Chinese brands expand market share. (2023, October 4). Reuters.  https://www.reuters.com/business/autos-transportation/russian-car-sales-jump-september-chinese-brands-expand-market-share-2023-10-04/

Wayland, M. (2022). Renault, Hyundai, and VW have the most exposure to the Russian car market. CNBC. https://www.cnbc.com/2022/02/25/renault-hyundai-and-vw-have-most-exposure-to-russian-car-market.html

Addendum

The Assignment requirements

For this assignment, you are using the information contained in your country report and briefly proposing a marketing plan for your chosen product based on it.

Include country report #3 at the start of your submission. This will be a simple copy-paste, and missing this entirely will affect your grade, but otherwise the section will not be graded again. The one exception is if you did not obtain a passing grade (70% or better) in Country report #3, in which case you may resubmit it here to achieve the learning objective.

Write a short (approx. 2 pages) executive summary for a marketing plan to enter the chosen country with your product or service. In this write-up, cite your own country report as often as necessary, using the hard data and insight collected there to suggest and justify your plans. At the very least, your marketing plan must explain.

· Mode of entry into the country. Acknowledge the advantages and disadvantages of this method, but justify how your chosen mode is the best given the information in your report (barriers to trade, uncontrollable environment forces, culture).

· Segmentation. Which consumer segment you are targeting within the new country, and where this segment fits into a hypothetical bigger international marketing segmentation (aggregate or disaggregate segmentation, etc.)

· Product. Necessary adaptations (if any) to the product based on legal, cultural, economic reasons.

· Price. Suggested price. Make sure to relate it to the local currency and to one indicator of local prices such as the Big Mac Index or the local price of a comparable product in the country.

· Place. Distribution and logistics recommendations for the product based on the country report.

· Promotion. Necessary adaptations based on legal, media, linguistic, economic or cultural differences. Suggest one symbol, value, ritual or tradition to be used by advertising. You may choose one marketing appeal or a change in values, as described in the Marketing Mix module.

The challenge of this assignment is in turning the information in your country report into specific recommendations. You will be graded on how well you use knowledge about a culture to craft specific market-entry and marketing strategies.