Come-back of Dr Pepper on the Russian market, страница 3

·  Absence of production on the target market. Dr Pepper doesn’t have manufacturing in Russia. The closest manufacturing is in Netherlands, what is pretty far from Russian borders and transportation costs will make the price of drink uncompetitive. The only possible way is to extent the manufacturing to Russia. It can be outsourcing, but the ingredients will brought from Europe. The way to relocate the plant to other European country closer to Russia, such as Finland proved it’s disadvantageousness in the case of, for example, Valio penetration on the Russian market, as it is going to adjust the production in Gatchina near Saint-Petersburg.

Competitive advantages of Dr Pepper:

·  Bad experience is also experience. The company already had its production in Russia, so it is already familiar with specific of Russian business, legislation, taxes and it is not the first time they have to find competent workforce here. It should help the company to penetrate.

·  The image of the countries where the products is habitual. It is well-known brand all over the world and presented in mind of Russian customers as a product from abroad, where the level of life is higher, people live in favorable social and economic conditions and drink Dr Pepper. Also there is a fortunate legends connected with the brand: the name the of The Beatles album «Sgt. Pepper´s Lonely Heart´s Club Band» was initially with Dr Pepper, but not a sergeant Pepper, but then was replaced in order not to break the intellectual property rights of the company.

·  Fresh benefits of self- expression and broadening the assortment. Now the income of population is higher than in previous attempt and economical situation is rather stable. It leads to higher level of consumption; people do not lose the chance to taste something new. As we know the consumption of food-item brands can also be demonstrative. The newness and freshness of the product against the background of Pepsi and Coca Cola give a great opportunity to consumers for self-expression, identifying him or herself with brand which image is new, unusual, unique and fresh.

·  The brand already has awareness in Russia.

To sum up the competition is still hash and the pressure became even harder. But it has a great potential of differentiation from other cokes, has a fresh image preferred by consumers and can pretend on the leading position on Russian market.


P Russian market is of the most investment attractive, but at the same time Russian market has always been estimated as risky for foreign investments and as too unpredictable. The high level of corruption, absence of independent courts, unfavorable conditions for entrepreneur activity and low level of corporate culture lead to distrust to our country. The simple example of such unpredictable behavior of Russian Government is increasing the insurance fees, which caused concealment of operations and incomings, after that the fees were decreased again.

E Economical growth is accompanied by some decreasing of share of poor people in Russia, but at the same time the social inequality is increasing. The main thing in economical policy of RF that there are two goals of our economy: active growth and extermination of poverty, but there is no point that the difference between social levels must be controlled. Any way for Dr Pepper penetration on the Russian market is enough to meet the named economical conditions, moreover to compare it with the times when Dr Pepper was trying to catch some market share; it can be identified as favorable conditions for penetration.

S There are some tendencies that should be taken into consideration before planning the penetration in order not to be surprised during the process. On the other hand it can seem too obvious for us and unexpected for foreign companies. In spite of wide-spread belief that Russia is drinking alcohol country and smoking a lot, there is a clear trend to a healthy way of life and healthy feeding; especially it became popular in big cities where a great range of various healthy foodstuffs is. So it means that informational pressure in the most populous places must be harder.