Vivaki and Interpublic Mediabrands: Strategies Dissertation

Introduction

Introduction

The influence of Advertising and Mass Media agencies on Russian people can be compelling. If one looks at its history the Russian people and Government mindset on the Media, one would notice at the crack down by the government and the killing of journalist by rouge forces in trying to suppress free press. One good example would be Journalist Anna Politkovskaya murdered in Moscow in 2006, and in between 1993 to 2006 over 50 journalists has been killed (Lucas 2008). Ironically Russia is also one of the first countries to have Radio and television introduced, even though it’s initially crack down on the freedom of Media. There is an intimate link between the economic structure of a country and its principles. The ideology serves three purposes – each subject comes to know what is there, what the best is and what is available. Secondly ideology is connected to power and domination. Thirdly ideology leads to discourses. These operations are founded on the economic base of the society. In a Socialist country there were no discourses on what was superior or inferior or competition and hence there was no question of choice. This absence itself led to a tension demanding change. Thus, it is important to find out the relation between The techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer and the research is targeted towards understanding the amount of influence (Mullinaithan and Shleifer 2005). For the purpose two noted media houses would be taken into consideration. They are VivaKi (Starcom, Mediavest, Zenith Optimedia) and Interpublic Mediabrands (Initiative, Universal McCann).

Aim and Scope

The aim of the research is to find “What are the techniques and strategies of VivaKi (Starcom, Mediavest, Zenith Optimedia) and Interpublic Mediabrands (Initiative, Universal McCann) to influence the Russian consumer?” and the research is targeted towards understanding the amount of influence. The scope of the research is vital in this context because based on the study it is possible for several Multinational companies to formulate their investment schemes in Russia.

Limitation

The research work did not execute entirely smoothly and had its own share of problems and limitations which were come across all the way through the carrying out of this research. Its limitation is the unavailability of adequate funds to carry out the study on a large scale, and the unwillingness of some contributors to the media sector to provide accurate information related to time factors in the projects. However, it should be mentioned there are other certain limitations of the study. A number of people (usually senior administrators) may also insist that the consumers have no contribution to the issue. Many of them may think that consumers come into the working formulation only during the advertising scenario and never in the development plan of the marketing procedure. As a result, they do not use the requisite strategic management techniques or adaptive methods that need to be exercised while developing a study such as this. However, it creates a void in the test as this limitation can be overcome by taking the subject into better mode of confidence. However, at the same time, it should also be noted that there are certain limitations regarding the methodology of the interview aspect. It could be mentioned that past history has shown that it is not always people revealing a context in a survey or interview holds much truth in the end in general sense. This is one variable that is able to corrupt any well-formulated strategically set formulations. However, this again is a possibility and not the general rule. At any case, it should be noted that all steps would be taken with utmost care so that such variables are not allowed to upset the basic test of market segmentation beyond a certain permissible limit. If all these parameters are well implemented, there could be no reason why a long-term strategy for operation in a full-length marketing penetration and procedure cannot be established.

Background

In the words of Sir Winston Churchill, we can say that Russia is a riddle wrapped in a mystery inside and enigma. For decades Russia stayed like mystery to the rest of the World. The World always tried to understand Russia, their developments and their researches. Russia was always considered as a super-power, and they were direct competitor against the European Nations and most importantly the United States of America. But now situations have changed dramatically. Due to the effects of Globalization, all the countries are getting to know about each other. Now-a-days one of the most important aspects of one country is its advertising and media exposures. As a first World country Russia has very good advertising industry and Russian media houses are also very popular, as far as the rankings go (Shleifer 2005).

Company Background

Vivaki Russia is a Russia based communications group which was formed in the year 2005. The group is actually consists of three independently operating agencies, like Media Vest, Starcom and Zenith optimedia. Starlink Moscow and Medialink Saint Petersburg are two affiliates of Vivaki Russia. It is counted as one of the biggest media and communication group in Russia and it is certified by RECMA rankings, the benchmark of Global media and advertising sector. If one look globally, then Vivaki is a part of the Publicis Group, it combines Digitas, Denuo, Starcom Media Vest and The Zenith Optimedia. The CEO of Vivaki is Sergey Koptev, and the target of the company is to be the world leader in traditional media. Inter Public Media brands is another very important media house of Russia. The affiliates of the media group are Initiative and Universal McCann.

A Brief Overview of Russian Advertising and Marketing

One of the biggest countries of the World Russia has eleven time zones, along with diverse culture, different buying methods and different per capita income of the citizens, Russian advertising and marketing is a real study in diversity. For a period, in the beginning of the 20^th century to be more precise, Russia rose to modern era of marketing and advertising and they followed ABC’s released Modern Market concepts, as in that time they found that their flowering businesses were going through a very lean phase. In that time Russian advertising and marketing had no other option but to adopt the newer versions of marketing, like using of internet and plastic money.

But in the political front at that time the country was going through sea-change, as the previously known USSR was dividing into small countries, like Yugoslovakia, Ukraine and other countries. The Russian economy was shattering due to these breakdowns as the divisions were directly effecting the productions of gas and petroleum of the later known Russia. And incidentally the percentages of these very important petroleum products were directly proportionate with the economy of any country. That was a time of awakening for Russia. The problem of Russia was grabbing the attention of the Western world. Some of the great minds of that time eventually saddened by the state of Russia as at one point of time Russia was one of the most important nurseries of the greatest minds ever born in the World, their R & D were better than any other country of the World, along with the scientific advancements that Russia did. The most important fault of Russia was that they did not have that good communication skills and they were not really what can be termed as marketing savvy class from beginning like other developed countries of the World (Slink et al 2004).

But now, the scene has changed dramatically, and now Russia is at per with the great nations of the World in that field. Historically, in the very beginning, may be in the start of the 20^th century, the growth rate of Russia was greater than that of United States and business were sometimes better than that of the World, and the Russian yellow pages advertisements were an example of that. This time went for a long time. But the “iron curtain” came down on Russia from the year 1966, as a new system started to rule Russia. In the unsaturated market there was no or very less advertising and marketing. No real connection with the developments of the countries had thrown them in the back foot. Primitive advertising and advertising campaigns were the toast of the time as the advertisings were directed towards the hugely popular “ex-Soviet” branded persons could do the trick for the companies (Webster et al 2006).

But it had its effects. After these years of no competition, suddenly Russia felt the heat of Globalization and it had no other option but to join the bandwagon. Previously the domestic companies virtually had no competition among themselves, and hence they had really “no selling skills”. But the scenario in the outside World was different. The World was prepared itself for a new war, and that was economical. And in this war, marketing and advertising were the most important of tools. The Russian businesses found themselves inside the hostile market and could not do any good there. Actually they were unprepared. They had no idea of using the internet and other tools and techniques of modern day. Many Russian firms suffered huge losses and they had to stop their businesses. It was a tough time for Russian economy wholly. Marketing cells are made in companies, but mostly, it can be said that the efforts were mismanaged.

Russia is a country where marketing has to be artistic and classical. And this is the tagline for successful marketing in Russia. Here no unified marketing concept would work, due to both the factors of a huge landmass and the enormous population. Along with that the marketing gurus have to deal with the different economical classes and also the organized crimes that is one of the most fundamental characteristics of Russia. Another very important aspect of Russia is its language. In short the Russian language is tough. It has many prefixes and suffixes; the language mainly deals with idiomatic expressions. Yes the language is really colorful in fiction, but it is nothing less than a headache for any person who is designing a marketing concept for a Russian product in Russia. The main causes for the difficulties are:

1. Russian words are generally longer than English, and by longer we mean the term
2. It is really hard to form new words in Russian language
3. The third and most important part is that, several technologies, or other very important things that is required to be mentioned in the marketing campaign for a product, which has one word in English can only be expressed in Russian in not less than two lines. The first and foremost concept of advertising is short and sweet, and the language itself flounders in this case (Zasurskii 2004).

Along with this there are cultural differences. There is a classic example in this case. The logo for Bacardi is a huge and ugly bat for all over the World. In Moscow one can find Bacardi billboard with bats and this matches the product or its effects. But another place in Russia bat can be a symbol of wisdom, and the billboards will not work there! Russia is famous for vodka. The drink can be taken straight, but rum can not be taken straight. That created a huge misconception and ultimately destroyed the company’s future in the land of Russia.

Media Background

The first print media was born in 1703 called Vedomsti (The Bulletin). It was Alexander II (l855-8l) who laid the foundation of the press age; however censorship against the press did last till 1906. The Gazeta Kopeika (The Kopeck Gazette) news paper was launched in l908 and revolutionized the news paper industry by its mass circulation of 250,000 nearly double then the existing new paper at the time called Russkoe Slova (The Russian Word). Because of the vast area Russia had before its split, News paper circulation could not have its reach it wanted deep within its territory, as the cost was mounting transporting and distribution the papers (Koltsova 2006). But this was the least of the press’s problems the government had a strong hand on what it wrote and published, unlike its European counter part was democracy played its part on free press. There were intellectuals who wrote about Russia outside its boundaries in Paris for the Russian people living abroad called “The Catechism for the Russian People” it was in 1849. Soon after there were numerous papers that sprang up and it ripple effect continued (Mullinaithan and Shleifer 2005).

New Life

However as time changed so did the government’s attitude and in 1863 they distant them selves on their advertising restrictions , however Russian illiteracy level was still high and out of five Russians four could not read. The future of the press did look bright when the First World War started and News papers became an important source of information.it helped unite the Russian people and support the cause. A man with a vision called Vladimir Ulyanov Lenin realized the Press’s impact on the people and started the first communist newspaper called Novya Zhizn (New Life). However censorship still played a big role on the press and in November l0, l9l7 the Government subjected a Decree on the Press, and also introduced General Regulation of the Press a new type of censorship on the press (Lucas 2008).

Conclusion

The period between 1941 to 1945, a revolution started called the Great Patriotic War and the Media was highlighting its cause and helping the spirits of the general population against Germany. After the war the new circulation number grew from 2 percent of the total population in 1913 to 66 percent in 1980 and in 1980 there were new papers in almost 10 languages. It was in 1991 after the collapse of the Soviet Union did the press see a new era and the media vacuum there was for many years. This led to the growth of the Media and saw many entrepreneurs taking the opportunity. It was in 1988 to 1992 that saw the Russian press’s Golden Age and there were huge inflow of new publications (Reuter and Zitzewitz 2003).

Literature Review

Introduction

Since the break up of the Soviet Union the economic grew and at start for the twenty-first century advertisers in the West spent billions of dollars on marketing. However in Russia the Advertising Media small in size compared to their Western counter parts. One reason could be advertising in Russia hardly influenced the big Media houses compared to the consumers in the West (Koltsova 2006). It was a bad period for media house when a major corporate company called MMM pyramid scheme that spend millions on its advertising budget offering schemes of instant fortune. Their slogan was that the MMM would never betray the people of Russia even though there is a good possibility that the Russian government might. Millions of Russians who put in their hard earned money lost. The company collapse and with it people faith on the Media, who indirectly blamed them for their misfortune (Reuter and Zitzewitz 2003).

But this was different when it came to the electronic media portrayed the new Russian, which many from the West thought other wise that this is not the life style of the Russian people. The electronic media would have their stations filled with quiz shows and give away shows which one of the favourites was when it came to the Russian people viewership. And then there was the Media law which propelled the Media and press to move forward the new Russian Constitution which had Section 5 of Article 29 provided protection to the Media and guaranteed freedom and prohibited Censorship (Jack 2005).

The electronic Media

The electronic Media played an important role on the Russian population it and this was because the Television and Radio could cover great distance within the interiors of the Russian empire unlike the print media. Another important fact was at the time television free unlike newspapers and it become very popular among the masses. If you look at statistics during the 1988 around 8000 plus TV stations were into operation covering reaching out to the whole country (Service 2006). In general the working class where one of the biggest chunks of the television viewers, who did not have time to read, but depended on the broadcasted news. To see its importance on the Media impact in Russian, in 1989 in the month of May the Congress of People’s Deputies was shown live. A huge number of the Russian population watched the news much more then any country in the world of over 75 percent of Russian population (Shleifer 2005).

New Revolution

There was another revolution in the making after the fall of the Soviet Union, and the start of the new Soviet account began. It was run by Soviet and Communist bureaucrats and the business class who introduced the import and export policy; from industrial tools to high tech products to human resources for the export taking.the most profitable of them all was Russian’s huge gas and oil, which brought in a large amount funds for the already starving government bank accounts (Gentzkow and Shapiro 2006).

Profits that were made were used to build the Russian economy and infrastructure and in this process jobs and employment started to be on the rise, giving the general population money to spend. This brought in manufactures, dealers, traders from with in the country and from outside the country, everyone wanted the share of the now Russian booming market. From up-market brands to essentials commodities to luxury products, however because of Russian consumers been very conservative and patriotic to its home products, foreign companies thought it would be profitable to first invest on local productions and share the pie with their Russian counterparts who were starving for investments and expansion. This created a wave of investors and imports from foreign companies, advertising and marketing was the need of the hour (Slinko 2004).

‘Western’ style buying

It was in 1998 when the Russian crises feel on its people. The currency value fell, products and commodities were rising. People were buying less and the lifestyle of the Russian people was deteriorated. However, the general concept of the Soviet consumer was in the form of products and not very brands familiar and any familiar brand was associated with status. The Media at the time did try to bring in a sense of ‘western’ style buying into the populations, which only reacted differently by the sheer size and volume of shopping product stocked at the stores (Longworth 2006). This really put the consumer on the back foot, that was living in the new era but whose mind was set in Russian Medieval times thinking it was not necessary and looked at it irrationally. They seemed to have lived their lives or been taught, that they never had a choice and suddenly they were exposed to choices of products at their disposal, which they thought were for only the Elite class (Zasurskiĭ 2004).

Television audience

In 1980’s the Television audience covered 80 percent of the population and had only one all-Union channel in most parts and after the downfall Soviet most of the people in Russia were working at the same place they were before, along with their family and retired relatives.this new change was completely different in the lifestyle they lived previously. This brought a sense of disbelief among the Russians, who felt been alienated or been culturally invaded, they blamed the Government and the Media for all this and wanted the foreign goods out (Miller 2006).

Media of revolutionizing Russia on the political front now became a source of advertising and marketing tools for most foreign goods, which had a negative impact. When the Russian had no choice and products were limited their fixed salaries were easily to handle, but now with choices in the market they had to go into budgeting their lifestyle in this changing environment. After the Collapse of MMM the people where looking for the government to give their investments back. One interesting development that happened during the time was a daily circulation called The kommersant which started off by Vladimir Jakovlev and he wanted to increase his readership. He got in touch with the Elite class and creates a lifestyle in Russian that was never seen before. There were articles on how to create a lifestyle on how to eat, what to drink and what to wear for the Russian people were featured regularly. They brought in a sense of fashion and as well as new cars were a necessary at this age. This became so popular among the rich class that any mention of a shop and its products in the Paper brought the shop huge business the next day (Lucas 2008).

‘Middle class

Then there was a different segment of people called the ‘middle class or the ‘new consumers’ the new segment always had the student’s working class who contributed equally to the society. The services industry and trading business filled in the huge gap of unemployment and thus the urban population was born who had money and were looking for a lifestyle, whose salaries were between $6,000 to $24,000 per year and their demand was a boom to the Russian economy, giving banking sectors, Automobile, housing etc a jump in business (Service 2006). This new breed of Russian lifestyle brought in reviews in papers and magazines and was poured in the Electronic media as well.

Now because of the choice the new Breed of Russians had it was getting difficult for the domestic market to survive unless the match the marketing capabilities of the foreign counterparts. This brought in a change in the TV channels, which saw an inflow of more domestic companies airing their products. Unlike the old Russia where the consumer would stock in supplies, the new breed would buy sugar, cereals and fruit juices. The Russian consumer will continue to move in an upward direction as long as his earning and purchasing grows (Longworth 2006). And the interesting fact is Russia’s now strong media continue to support and push local and international brands influencing its consumers. From 2003 to 2006, shopping outlets from 8,991 to 20,524 have sprung up and its expected to grow at a phenomenal rate, which would all the Media house to support their business needs, changing the face of the Russian Media 50 years ago who was solely born to bring a political changes in the country (Kahan 2006). Now, it brings a Consumer Revolution, changing the face of how products are sold and how companies will fall at the flip of their fingers. This consumer behaviour has brought a change in the advertising trend, which saw a doubled revenue in volumes throughout the country. The Russian media still remains one of the biggest industries in Russia and as long as the “new consumer” exists and spread throughout the Country the Media house will dominate the Russian people on what it must buy and it must not buy (Lucas 2008).

Macroeconomic Factors influencing the Market

It is one thing to declare officially that the society in Russia has changed based on the concept of supply and demand linked with typical capitalistic theories and quite another to understand and realize these ideals so as to change the attitude of generations that had nursed with passion different attitudes. Thus the change must not be only on paper but also a transformation of perceptions. Economy has a far greater connotation than just how to earn and spend money. The economic framework of a nation embraces within it the complete social scheme (Service 2006).

One of the regular problems that appear when a country is changing from a communist economy to a market one is the part played by advertising. In a country where no competition had existed there had never been any need for advertising. It was bread was bread without any brand preference. Thus advertising had no reason to be there in a communist society. As a result those who had lived for generations under communist rule found themselves bewildered in the post-socialist era and continued to feel that advertising had no function in the new set up (Besley and Andre 2001).

The first thing to bear in mind in a free economy is that we are constantly making choices with the help of language, actions and derivation of meanings from speech. These choices are made spontaneously and swiftly as a matter of ingrained habit. Here memory factor comes into play – memory of the individual as well as the collective. The new streams coming in flows into the old and there is an impact of the river flowing continuously with changes that absorbs the new – but into the old. It has first to be accepted that the new market is part of the same social order that has brought about this change. The members were the very agents of change. Thus advertisers engaging actively in portraying their products are polling from the system that has so far been accepted and then they very subtly try to alter the meaning and the nuances creating choices for the consumer in a new market economy like Russia (Longworth 2006).

Change of mindset

The residents of communist countries like the hitherto USSR have been used to knowing mass communication to be only as a vehicle of propaganda. The advertisers have to bear this in mind today while tweaking changes. The intention of a market democracy is to break down the limitations on the choices placed in the field of politics and economy as much is feasible. The change over from a political economic order that was centralized to democracies of markets is something of immense magnitude and import. It is to say the least – massive transformation. The period of transformation is chaotic where not necessarily the levels of choices are the same at the macro of the state and the micro level of the individual. Some resist change; others think it is not fast enough. This tug of war is going on between leaders and individuals (Jack 2005).

Consumer choice

Ultimately it is consumer choices that will allow for some of the dramatic changes. The choices are not only about decisions and about purchases but decisions that impact on the entire cultural milieu and completely change relationships. Purchases tell us how much time we spend, with whom, what we value as good or bad. It shapes our entire ethical values (Lucas 2008). These choices are important in a market economy and from it have grown an entire set of occupations – salespersons, advertising firms, media operators and buyers as well as consumer advocates and public relations personnel. The children of modern Russia will aspire for some of these posts that were non-existent a couple of years previously. In America the growth of consumer-knowledge depends on family choices helped by the media. But in post-socialist Russia there was no inter-generation history of teaching the children about the tricks of consumer operations. Thus there will be gaps between what the sales people talk about and what the general people understand (Hamilton 2004).

Media Influence

As the market economy expands the very essence of life will change leading to greater choices being implemented by the people. The choice will not only be about goods but the ideas pertaining to nations and their history. At the heart of advertising and shaping of consumer choices in modern Russia the television plays a vital role in reconstructing the social fabric of the nation. Thus we see that the government of Russia rules over a large media empire – and it is this empire that fashions the consumer choice of its subjects (Longworth 2006). BBC has reported that firms having close connections with the government have bought up most of the important newspapers and journals. “The government owns about 60% of the newspapers and either wholly or partly the television stations across the state” (Guriev, Sergei and Rachinsky 2005). There are two half-independent channels REN TV and Channel 5. Soon these two would also come under government control.

Foreign influence

But in 2007, “Nicolai N. Petro, a political professor of politics, strongly said that it was foreign firms that owned nearly half the shares of all the broadcasting companies and it was not the Russian State” (Lucas 2008). According to him, the government’s share in the journal market was only 10% or less, while its share in the television media was even smaller and in 2005, Konstantin Kosachev, the leading figure in Parliamentary Committee on Foreign Affairs, said that freedom of speech was the same in Russia as in other Western countries. However he admitted that the television was still under many controls but added that this was not typical of Russia alone. The BBC opines that the newspaper market in Russia offers the consumers a diverge coverage in comparison to the coverage provided by the television. It is this coverage that shapes the choice of the consumers – the television being stronger than the journals (Lucas 2008). The Vedomosti newspaper reported “in 2006 Robert Murdoch’s firm failed to sell three of its popular radio stations in Russia because of lack of reasonable number of buyers” (Gentzkow and Shapiro 2006).

As per the reporting of World Press Freedom Review 2008 conducted by International Press Institute there was considerable increase of pressure on media outlets that were independent. This tendency increased from 2007 (Lucas 2008). The government is blamed for using various methods to keep on check broadcasters, to keep important journalists in the wings and to force them to admit self-censorship. Thus the Russian Government introduced political regulations in the media world and resorted to harassment by the officials. These seem to be all leftovers of another regime – not easily shaken off. Consequently consumer choice too gets restricted (Gentzkow and Shapiro 2006).

Media and advertisement

In 2008 May the International Federation of Journalists was happy to see indications of a “fresh start” in the relationships between the governments and the independent media. In 2008 November President Medvedev admitted that there were problems relating to the media in Russia. In 1993 there came about an understanding between USA and the Russian Federation that resulted in the formation of an agenda named Business for Russia (Lucas 2008). The administration of this programme was jointly in the hands of US Information Agency and Russian Federal Employment Service. It made handsome opportunities to Russian entrepreneurs and to the officials in the government involved in development of business. The pilot programme included 350 participants and ran for 18 months starting seriously from 1995 (Service 2006). The participants swelled to 1,000 who toured 24 cities in USA for one month training. They stayed with American families (Dyck 2002).

Perm in the region of the Ural Mountains hosted the first group. Perm has relied heavily on military industrial production. Since Perestroika and the rebuilding of Russia after the end of the Cold War there has followed a decline in the military ware production prompting the government to put stress on transforming the surplus military production capacity to civilian purposes. The severity of the economic crisis in Russia was severe and in Perm too it was similar because of dependence on one aspect of production; there was lack of multiplicity (Service 2006).

The method of market segmentation was introduced. It categorizes the consumers taking the yardstick of demography or psychographic variables. It is presumed that these influence the behaviour of consumers. Attempts were made to comprehend the inner flow of psychology and behaviour frameworks of the surfacing consumer market in Russia. Since Perestroika the consumer market in Russia has changed drastically. The pace of change is rapidly increasing with each passing day in an economy that is centrally controlled trying to fit in with growing western style demands (Lucas 2008).

The regular shortage of all kinds of goods that had frequently typified the Soviet era became history. Shortages were no longer there. Right across Russia domestic and foreign goods became easily available – primarily in the cities. But currency shortage continues to remain a problem for many of the consumers. In previous times when the economy was under strict control the decision concerning the type and volume of goods to be produced was controlled and directed by the centre. But in the free market era demand economy, that was the goal of the Yeltsin period onwards, the choice now depends upon the market-consumers (Dyck, Moss and Zingales 2005).

From the time of Perestroika the market climate for the consumer has basically changed. The process of change from “planned economy to market economy took off from the 1990s and picked up speed without any signs of reversal from 1992. From then on, prices and foreign trade rules were liberalized and privatization of business began en masse” (Dyck, Moss and Zingales 2005). Although in 1993 there was slowing down, from 1994 to 1996 the gains were consolidated. A Russian type of Securities and Exchange Commission was set up with more businesses entering the market. This resulted in the domination of the economy by the private sector (Service 2006).

Market structure (Demography)

The radical reforms led to inflation in 1992 and domestic prices increased. But although income increased from 1996 the prices of consumer goods went up at a proportionately higher pace. It all resulted in a fall in volume of retail trade. To hedge this inflation people began to invest a large part of their savings in dollars. This resulted in a noticeable social divide – the very rich (5%), the developing (12%) and the destitute living beyond the poverty line. The gap between the wealthiest and the poorest increased rapidly. Unemployment spiked and production of consumer goods decreased. Recently the rubble has started to stabilize and spending and real savings also increasing. This is making marketers optimistic (Gomes 2000).

There are four elements in marketing mix – product, place, price and promotion. All were affected when in Russia the controlled economy shifted to that of demand economy. “In Soviet days the consumer goods were not given priority” (Dyck, Moss and Zingales 2005). Of primary importance was the arms race. Thus the country lagged behind in choice and quality of consumer goods (Service 2006).

The picture began to change when hard currency was earned by the Soviet Union by selling oil during the 70s. Soon French perfumes could be seen on the shop counters at reasonable price. Travellers came back with Western goods that were either sold in the black market or through “commission shops.” This led to the consumers developing a taste for it. When the Soviet Union started to collapse from the 90’s onwards there were severe shortages but the spade work had already been done in fashioning the choices of consumers. After 1992 liberalization, the situation improved and the market became flooded with goods – foreign and domestic. Most were lowly priced and of poor quality (Lucas 2008).

Advertisement influence

Currently selection of product is remarkably higher than what it was a decade ago. The shopper can pick up anything it wants within the limits of his or her pockets. The proportion of foreign goods is now half the total. More than half of food stuff and about 80% of latest household gadgets are imported. Consumer choices were and are now influenced by desire for novelty but old habits die hard and thus there still prevails the habit of buying large amounts and swearing by everything that is important (Service 2006).

Advertisement plays a very important role in shaping the choices of consumers. Since the opening up from 90’s the consumers have been flooded with many types of advertisements. Some resented this bombardment and became concerned about its unethical and fraudulent approach. The early advertisements were of extremely poor quality but lately it has been polishing and sprucing up. Currently it is the foreign firms that are commissioned to promote products. The Russian producers were to catch up on the consumer’s penchant for all things foreign and so they quickly inserted some English words on their labels. This way large swath of domestic goods were deceptively sold to the consumers using the labels that made them believe that these were imported; brand names were suggested to confuse the buyer (George and Waldfogel, 2003).

Advertisement and media pushing inferior goods

The huge influence of advertisement and mass media in Russia has gone far enough to enable the Multinational companies to sell inferior goods. There are some terms commonly used that may not be confusing but are not very clear. Unless these are understood it will be difficult to parley into the impact of the economic downturn on the sales of inferior goods. What are meant by recession and depression? A familiar joke says that recession is when the man next door loses his job and depression is when you are the victim of job loss (Baron 2003).

Depression is calculated as a drop in the GDP by 10% or even higher in the full year. If the economy is diversified then the country recovers quickly from the shock. When GDP is negative for two consecutive quarters then it is said that recession has set in. Another word very commonly used in economics is regression. The dictionary meaning is to go back to a lesser developed period (Lucas 2008).

Economics being termed a ‘dismal science’ remains rather undecided on these terms because of various schools contradicting each other. There is no universal agreement. For instance the GDP might show growth but not so with employment. So, recession might have retreated but the problems in the housing sector and unemployment continues to be rampant and intense (Gillan 2003).

The purchasing power lies with the people and during times of recession they opt for substitutes that are cheaper considering their very survival is at stake. The majority of the manufacturing units cease production because of a fall in demand. This leads to the most common phenomenon in a recession – increase in unemployment caused by stoppage of manufacturing. Most of the companies retrench their staff and lay them off. The people who are jobless fail to find alternative employment. What is meant by inferior good? Goods whose demand goes down when the income of consumers increase are known as inferior goods. Thus the first lot of good are termed inferior not because of quality but because of affordability (Service 2006).

Say, bus travel, it is cheaper than travel by air or rail but it eats up more time. When purses are slim bus travel becomes popular but when pockets are full with there being more money than time, the faster mode of transport is given preference. Other inferior goods are food stuffs like bologna, mass marketed beer, frozen dinners etc. But as earnings increase one is apt to buy more expensive, attractive and nutritious foods. Thus we see in human society as in Nature one man’s meat is another man’s poison. The makers of luncheon meat SPAM can be referred to as an example. The word ‘spam’ is generally associated with fraudulent activity on the Internet but the producers of luncheon meat spell it with capital letters as SPAM. During the last decade it had purchased 10 to 12 business concerns. Commenting on this the company is not planning to immediately make more acquisitions but that does not cancel out future plans. The debt position is low and this gives cause for hope (Miller 2006).

Impact on sales

To increase sales – it being one of the targets for the financial year, sellers opt for more aggressive advertising. The auto repair sector increased business by 2.4% in the past one year while car dealers noted a fall of 9.7%. In the past twelve months home remodelling business went up 4.6% – those contractors dealing with electricians, plumbers and heating. But for home builders business went down by 5%. In food stores the grocery shops showed a 6.7% increase in sales in the last one year while sit-down restaurants noted a decline by 3.9%. Among the specialty schools the technical trade sections noted an increase in enrolments by 7.8% – it being 5.9% higher than 2007. The most surprising is the increase in Dentist’s patients by 7%. In 2005 it was 5% (Lucas 2008). Perhaps people need to grind their teeth during recession or again a tax matter might be the cause. Certified public accountants saw during the past twelve months an increase by 10.2%. It has ranked among the top 20 sectors that have showed growth during this recession period (Kahan 2006).

Another surprise is the increase in business activity including sale of products in trade relating to personal care – skin care and hair salons as well as barber shops. Perhaps people need a diversion now that they can no longer splurge on vacations. Another theory that has tried to explain the impact of sales of inferior goods during a time of economic downturn is the Lipstick Theory or lipstick-effect. During times of uncertainty certain products will begin to sell more. Leonard Lauder explained that during troubled days when the women cannot indulge in luxuries like designer clothes and costly jewellery they satisfy their craving by opting for something less expensive like lipsticks. The theory has not been proved but the recent pick up of lipstick sales during the current crisis hints at this truth – it cannot be discarded totally (Service 2006).

There is no doubt that when days are tough people will stop spending on non-essentials. But they will hunt for less costly alternatives. Thus during an economic downturn the best placed firms are those that sell what is termed by economists as ‘inferior goods.’ These are the substitutes for originals that are no longer affordable.

Thus focusing on lipsticks instead of spa treatments could keep the business running – running handsomely. The restaurants are feeling the pinch of the recession but sales of recipe books have picked up with families beginning to enjoy once again the joy of home cooked food (Guriev, Sergei and Rachinsky 2005).

The recession has brought about remarkable success in the bicycle industry. Shops across America are reporting strong sales. People are bringing out their old bikes and giving it a new touch. Apart from the gas factor it is the recession that has pushed up demand for bicycles.

Inflation and unemployment are both increasing. Real wages have seen no gains in the last few years while the prices of essentials are rising. This fall in real income may have spurred the sale of bicycles. The bicycle can be termed an inferior good in the sense that as the income is falling and the demand for the item is increasing. Bicycles stand for a radical cheaper way of commuting in the middle of high food and gas prices and weak dollar (Service 2006).

Although December 2009 has been as tough to retailers as it was all through the year overall sales however are not decreasing. Shrewd consumers have been seeing their money go far by changing their shopping habits. The sales are being lost for retailers not because people who were thinking of buying and then did not but because they bought other products – inferior goods that are not inferior in quality. The word ‘inferior’ in economics is not used as an aspersion.

BBC research shows that although other sales have gone down, the sale of baked beans have picked up by 22.6% last December in comparison to December 2007. People are choosing beans on toast a nutritional alternative to other exotic meals. So sales of bread too have picked up. In the bread sector the sales of the standard white sliced ones have gone up sharply. The latter is an inferior product. When people see their income rise they discard these for more premium ones like seeded loaves, baguettes and croissants. The sale of champagne fell by 10% in December but drop in the sale of sparking wine was modest. This meant those who used to prefer champagne previously are now going for sparkling wine, whereas those who used to take the sparkler previously are opting out of it – hence the drop was slight (Lucas 2008).

Thus, it is evident that there is a definite pattern and it holds true for most products. The same holds true in regard to olive oil. Previously this was thought to be a luxury item but surprising sales went up by 6.5% in December in comparison to December 2007. Why? Has this costly oil become a basic staple? Perhaps the people have become health conscious and not making cuts here or perhaps people are not buying costlier ready made dressings but preparing their own ones at home with olive oil as one of the ingredients. The olive oil factor also can be interpreted to mean that people are eating out less and staying at home and cooking. The bottom line is that anything dealing with simple living and doing it by you is sure to be a success (Lucas 2008). The recession is seeing the beginning of a stay-at-home socio economic scenario.

Direct influence of advertisement on Russian population

Actually, we are in the era where you would need a whole new phrase ‘ad for ad sake’. If this looks too morbid to ad film makers then it would be better to click on the television and have a look at the product ads. As a part of the ad trends of the 90’s these advertisements rarely show any interest in revealing the usefulness of the product. They are more concerned with the sub-alter experience of the product users. Today’s ad film makers try to create a utopian flavour to the product where the product rules supreme and all the characters are quite happy to be under the regime (Longworth 2006). This is the utopia of the world of advertisement and in a way it is replacing Karl Marx’s opium.

Negatives of alcoholism, fighting, hangovers and discrimination are absent. The ads do exclude the unattractive, elderly and obese and only contain those who are attractive. But hoping to make its existing products seem more distinctive and without changing the content of the ads, new ads are chic and the colourful bottles give the product a funky post-modern look. The ads give the product a hip, retro-chic appearance. How impressive? Though alcohol is harmful to health, through advertising, the brewer has achieved utopia with its more sophisticated, upscale image (Hamilton 2004).

To sum it up- it would be very relevant to state that in our all utilitarian materialistic market economy driven needs of urban life the advertisements play a vital role. In this whole world of ‘earn to burn’ philosophy it is all but evident that we should be living in a virtual make believe world of utopia more like Aldous Huxley’s ‘Brave New World’. Down the ages of history all the human clans ever came to existence created utopia in accordance to their own culture and taste. This is our culture and our taste is creating today’s utopia- better call it Adtopia (Baron 2003).

Branding In Russia

A brand is a given name or trademark associated with a particular product or a certain producer. There is a prevalent recognition that brands play a vital part in initiating and supporting the financial achievements of a business. With intense competition and surplus capability in practically every trade segment, strong brands help organizations to distinguish themselves in the industry and provide a means to emphasize how their goods and services are distinctively capable of meeting customer demands (Longworth 2006).

Financial worth has all the time been affixed to brands. However, only during the 1980s brand valuation approaches were instituted that could reasonably facilitate the understanding and appraisal of the explicit value of brands. The scheme of affixing a distinct value on brands is now a commonly recognized practice. Those involved in the field of accounting, transfer valuing and licensing contracts, mergers and acquisitions and value oriented management, regard brand valuation as a key element in contemporary business.

“In the financial approach of attaching a value to a particular brand, brand value is regarded as the net present value (NPV) of the estimated brand earnings, cut-rate by the brand discount value” (Lucas 2008). The NPV computation involves both the projected period and the phase beyond, implicating the capability of brands to carry on generating future revenues. The rationale underlying the creation of technical valuations of a brand are balance sheet documentation, tax scheduling, legal action, securitization, authorization, mergers and acquisitions and shareholder relations. They concentrate on attaching an instance valuation that symbolizes the value of the patents. Commercial valuations are created with the intention of managing brand architecture, portfolio organization, market plan, budget planning and brand scorecards. Such valuations are rooted in a dynamic framework of the branded business and aspire to compute the part played by the brand in manipulating the key components in the model (Lucas 2008).

There are very few established frameworks and processes to control the brand asset. On the whole, it may be said that there is an escalating necessity for brand valuation from both an organizational and transactional standpoint. Thus, it is important for companies to emphasize on the economic value of brands (Zepetnek 2005).

For businesses coveting high shareholder value, brands emerge as a key success element. Brands usually create certain demarcations from the competition it faces and draws customer allegiances. Established brands are capable of generating a consistent flow of prospective revenues, thus creating strong shareholder worth. To facilitate allocation of a reasonable value to a certain brand out of the overall value of the possessing organization, four essential standards must be fulfilled relating to that brand. It needs to be separately identifiable, cosseted legally, transferable, and continuing in nature. In this context, separability entails a condition where the brand is a lawfully separable entity, evidently discernible from the additional assets owned by the business. In certain cases, nonetheless, brands can be connected to other resources or company name in an irresolvable manner and separability may thus be complicated to attribute. For example, some commercial brands may not be distinguishable product-wise if they are so employed for other products also (Longworth 2006).

A thriving, established brand undeniably has an economic worth attached to it in the sense that, the owing company is appreciated at a higher value with the brand than without it. Nevertheless, there exist several practical concerns in establishing the brand’s worth. In a number of cases, separating the value of the brand from the rest of the business is unfeasible. Any valid evaluation of a brand’s prospective profitability entails several intrinsic subjective discernments about marketing factors. These subjective discernments lead to a divergence amongst economic validity and accounting objectivity. Thus separability remains an unresolved issue in the sphere of brand accounting (Dyck, Moss and Zingales 2005).

Considering a brand as an asset would imply the exhibit of this asset as a distinguishable entity on the balance sheet of the owning enterprise. The function of a balance sheet is to demonstrate the fundamental financial performance of the company and thus determine its economic strength. However, tribulations in valuation poses a severe shortcoming in this regard as there exist no accounting conventions on what makes up a factual and evocative value of a brand. Furthermore, the difficulty of valuation takes a more severe shape in a home-grown brand than in a brand which is taken over from a different company in the course of the purchase deliberation paid for the possession of the latter (Gillan 2003).

Influence of new media

On the Net, viral marketing is a technique by which an advertiser or website passes on a marketing message to other websites. This exponentially widens the visibility and effect of a message by an advertiser. A prominent example of viral marketing is Hotmail, now owned by Microsoft. Hotmail displays its own and advertisers’ messages on e-mails. It can be stated that the term ‘Viral marketing’ is not the most popular choice for a term suitably describing this technique. The same technique is orchestrated in the Russian market.

At the start of B2C, almost every start up had pretences to have a viral component to its strategy. Not many achieved the phenomenal success of Hotmail. This is achieved through self-propagating processes similar to the replication of computer and pathological viruses (Service 2006).

It is claimed that every satisfied customer tells at least three people about a happy buying and product experience. An unhappy customer tends to tell about 12 people who will 12 others why a product or service was disliked. Therefore, the challenge for successful marketers is really being able to exploit this human tendency to its advantage (Scott 2007).

As an innovative make over of the old style word of mouth publicity, viral marketing is fast proving popular as a medium for advertising. People can watch advertisements they want to see and cut off clutter. There is a way now to create interesting and novel messages, which will be viewed with lots of interest and be considered worth passing down to others swiftly across the Web (Longworth 2006).

The trend has been rapidly adopted by marketers too. Every marketing campaign unfolds with a viral marketing phase. This marketing tool involves less expense and what is more, viral campaigns are more believable than typical Madison style kitsch. Burger King’s decision to revamp its publicity paid rich dividends. The company took the viral route to promotions, making a turn around in sales. The reasons were simple: the campaign was believable because it was close to life and preferred by burger king’s target group, young men. Though mostly unregistered, the new media has taken the Russian population by storm and it has the potential to influence buyers in the Russian market even more in the future (Saren 2006).

Conclusion

There is considerable debate over valuation and amortization of home grown brands. Proponents argue that by forbidding the capitalization of homegrown brands, comparability amongst competing organization is lost to some extent. Irrespective of being acquired or home grown, brands need substantial expenditure, produce considerable revenues and add significant worth to the owning company. Thus, permitting home grown brands to be capitalized would do away with this discrepancy.

There are several recognized methods for valuing trademarks or brands. In the event of considering a brand one can consider what are costs associated with designing, licensing, and marketing the patents, trademarks and other connected rights. On the other hand, one may focus on what they could possibly cost to be substituted. Both these approaches, namely, historic cost method and the replacement cost method, are subjective but are standard conventions. Economic substitution analysis is a different approach towards brand valuation. It looks at questions such as what would be the financial strength of the branded enterprise without the possessions of the trademarks or brands and how are the levels, values and outlays dependent on it. The difficulty with this method is that it counts on subjective conclusions with regard to what another substitute might be (Service 2006).

The argument that the brands or brand names of a business under which its goods or services are marketed, embodies as much an asset as their tangible counterparts, is increasingly gaining momentum. The issue logically crops up with regards to whether the implication of this entity as an asset in the financial documents serves any real significant function or is merely another effort by the brand accountants to create more opportunities for themselves (Lucas 2008).

Methodology

Method

The methodology used in this report is the combined method with interview questioners, thus, it could be stated that in a way, it would be a mixed method. This method tries to analyze the given data which is generally word, pictures or objects in order to gain a through understanding of certain behaviour and the different reasons that causes such behaviours. The main objective of this method is the development of a particular hypothesis or theory concerning the natural phenomenon. (Creswell 2003)

Method for the Study: Combined Method

There exists extensive debate regarding the validity and supremacy of one of the research methods but it has again been criticised by scholars who believe that the two methodologies are compatible. So these group of scholars believe that even though the two paradigms are different, there lies certain elements of similarities which can provide fruitful research: “The goal of mixed methods research is not to replace either of these approaches but rather to draw from the strengths and minimize the weaknesses of both in single research studies and across studies” (Johnson & Onwuegbuzie, 2004, p.15).

This methodology is identified through the use of both the qualitative and quantitative methodologies. This method identifies the similarities in the traditional methodologies which have been used. According to Casebeer & Verhoef,

“Careful review of the full spectrum of both major research paradigms will confirm that both methods can be used in less “usual” ways, i.e. it is possible to quantitatively describe observable events in the real world and to collect qualitative evidence within pre-specified, experimental situations” (Casebeer & Verhoef, 1997).

This method has gained acceptance in various research fields. Sociologists and nursing researches widely use this methodology. As has been suggested by Corner, “the use of different research methods within a single study can provide a richer and deeper understanding of the area under investigation than would otherwise be possible” (cited in Casebeer & Verhoef, 1997). Recently medical research has also started using both the traditional methods together (Casebeer & Verhoef, 1997).

Types of Combined Methods

Combined methods are divided into five categories (Tashakkori & Teddlie, 1998). “First is the Triangulation technique. This the method of using more than one type of quantitative method. This process is further divided into four parts:

1. data triangulation,
2. investigator triangulation,
3. theory triangulation, and
4. methodological triangulation

(Tashakkori & Teddlie, 1998). It is the methodological triangulation that uses both quantitative and qualitative method. Then there is a method study which uses only one type of research method.

Then there is the mixed model research method which is defined as the “studies that are products of the pragmatist paradigm and that combine the qualitative and quantitative approaches within different phases of the research process” (Tashakkori & Teddlie, 1998, p.19). These are further divided into sequential study, parallel/simultaneous studies, equivalent studies and dominant-less studies (Tashakkori & Teddlie, 1998).

Advantages and Disadvantages

As the mixed research model is evolved through the disadvantages of quantitative and qualitative research method, it is important to understand the various areas where in the method can be applied. Further it is important to understand the areas wherein the two traditional methods will be applied to reap full benefit of their combinations. A mixed research method comprises of the following steps:

1. determine the research question;
2. determine whether a mixed design is appropriate;
3. select the mixed method or mixed-model research design;
4. collect the data;
5. analyze the data;
6. interpret the data;
7. legitimate the data; and
8. draw conclusions (if warranted) and write the final report. (Johnson & Onwuegbuzie, 2004, p.21)

Proposed Methodology

Given the extensive discussion on the three different kinds of methods of conducting research, it is important to understand which method will be useful for the proposed research. The research methodology that the research proposes to use is a mixed research methodology. In the following section, the research will enumerate the reasons behind my choice of methodology wherein the research will use a case study approach to study approach to determine the problem.

Information system research methodology has been dominated by mixed strategy wherein case study approach has been extensively used (Koltsova 2006). Qualitative research methods have been used extensively used in studying the study of adoption of media influence where mostly the scholars have provided their analysis of the situation as they have seen through their experience or through interviews or secondary research. Very little research has been done on the area of internet adoption in marketing in Russia which will help in analyzing the situation objectively (Mason 2002).

A mix of qualitative and quantitative research is proposed. In the qualitative research section, the research will follow the historic data of the media influence and try to determine the areas where the internet has been adopted and the existing Impact of media on Russian market system. In this part, the research will do an extensive secondary research on the Russian market system, try to ascertain the benefits that banking has achieved through internet and then do constructive interviews to ascertain the complete picture.

From the qualitative research, the research will gain adequate information regarding the organization’s present adoption status of internet and the barriers to it. The quantitative research section will follow a questionnaire survey in the designated organization or sector. The survey will be directed to understand the profile of the respondents, the usage of internet for them and the internet services which they are presently using. The next section of the questionnaire will discuss the benefits that the sector has gained from the usage of internet. The perceived benefits of internet usage have to be captured through the questionnaire. Then the questionnaire will discuss the barriers which the sector faced in adopting the internet for its business and clinical purposes.

The survey result will be evaluated through factor analysis of the data collected. Here it must be kept in mind that barriers or usage of internet may be enhanced not only due to organizational factors but also due to individual factors. This has to be kept in mind while working on the questionnaire. The questionnaire will also evaluate the adopter’s decision and the criteria for choosing internet as an innovation. The business and clinical benefits that the internet can provide to the sectors will be asked in the questionnaire (Mason 2002).

Further in order to determine the performance growth with the use and adoption of internet has to be correlated to the degree of usage of internet to the operational, financial, and performance success of the sector. This can be done through the data on internet usage and the perceived level of adoption to the financial performance over the years of adoption, number of patients treated, cost aspects, etc. can be correlated which will provide the level of acceptance of the internet and the success of using it. This can be validated through the study of the perceived benefits of the internet of the respondents with that of the financial and operational data. This process is important to be done in order to understand the Impact of media on Russian system.

Conclusion

Why both the qualitative and quantitative research methods are proposed to be used in the research process? The reason is due to the use of qualitative tool in the information system research in the literature is rich and has been validated as one of the most accepted tool (Koltsova 2006). Further, quantitative research is a well accepted methodology for measuring the benefits and barriers of internet adoption. This is so because it provides the objectivity and positivism that the research method presents. The combination of the two methodologies will be used to identify the factors which are the benefits, barriers, and usage of internet and quantitative method will validate the factors that we draw from the qualitative research.

Research Philosophy and Approach

A research initiative can be regarded as a practice of gathering, examining and interpreting data and information to come up with answers to required questions. In relation to this dissertation, research may be explicated as a realistic study or exploration to discover new information or bring together established facts by means of scientific methods for with the intention of developing new or enhancing extant theory and establishing its relevance to real world problems. In this investigation both basic and exploratory research design approaches would be adhered to. This particular research initiative is based on a realistic problem ensuing from the happenings of the construction industry in general and the research questions are structure in a manner to look into the relation between the techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer. This research can be categorized as applied as well as exploratory type. It is applied and exploratory in its temperament for the reason that the research originates from real world problems and attempts find out what are the root causes for delay occurrences.

Research philosophies can either be a based on theory (deductive), or a question constructed for contribution to enhancement or developing theories (inductive). Alternatively, a mixed approach may also be adopted for a particular research. From the perception of logic, two wide-ranging approaches to analysis may be referred to as the deductive and inductive approaches.

Deductive logic progresses from the more broadened perspective to the more narrowed down perspective. Sometimes, this is informally known as a “top-down” scheme. The process is initiated by conceptualizing a theory in relation to the subject of interest. The focus is then narrowed down into further detailed hypotheses which can be tested. The analysis process is furthermore specifically focused when observations are recorded and information is gathered in relation to the hypotheses. This eventually results in the capacity to assess the hypotheses with the application of the specific data gathered which is a corroboration process of the original theory.

Inductive way of thinking functions exactly the opposite way, traversing from a more specific perspective to wide ranging generalizations and conjectures. Unofficially, it is occasionally referred to as a “bottom up” technique. The inductive process of analysis is started off with detailed observations and measurement, and following that pattern detection and the process of looking for regularities is carried out. Subsequent to this some tentative hypotheses is formulated which can be investigated into, and to conclude some generalized conclusion or conjectures are drawn up.

The two different means of analysis have a much unrelated approach associated with each of them in the course of performing the research work. Inductive judgment, by its very inherent nature, assumes a more open-ended and investigative approach, particularly at the commencement of research activities. Deductive analysis demonstrates a narrower temperament and is associated with examination of the validity of or corroboration of the hypotheses. Although a certain investigation may appear to be entirely deductive in nature (for example, a trial designed to examine the hypothesized impacts of some treatment or intervention on some consequences), majority of the social research initiatives employ both inductive and deductive reasoning techniques at some stage in the research timeline. In fact, it is plainly evident that the two graphs presented above and be merged into a singular graph to indicate a cyclic process- one that repetitively cycles from theoretical perceptions down to recorded observations and back up once more to generalized theories. Even experiment carried out in a very controlled environment, the investigators may detect patterns and regularities in the data and information that guide them to come up with fresh and innovative theories.

This particular research initiative adopts an inductive means of analysis as it is based on a question and attempts to find relation between The techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer.

The Study Scope

Media influence is caused by several factors. Each of the reasons for influence has different frequency of occurrences and a varying extent of impact on the performance variables of relation between The techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer.

Data Source and Collection

This research initiative makes use of the data sources to fabricate the following fundamental testimonials: respondents’ manuscripts and archival articles.

The respondents’ manuscripts were composed by employing questionnaires and distributing them to the stakeholders in relation between The techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer. There are two fundamental kinds of survey questionnaires: open-ended and closed-ended. The questionnaire constructed for this survey has elements of both open-ended and closed-ended approaches.

Sources for the archival articles were mostly previously completed research initiatives, journals, academic text books, thesis papers and conference records which were studied extensively and played a vital role in identifying the frequently occurring problems with regards to relation between The techniques and strategies of VivaKi and Interpublic Mediabrands to influence the Russian consumer. Furthermore, they facilitated the research to gain an understanding of how challenging issues based on time overruns arise and the manner in which they are acknowledged.

On account of the large amount of organizations that are clients in the industry and the vast number of contracting corporations that carry out marketing initiatives a survey using a questionnaire as the primary data collection instrument was found most appropriate.

Survey questionnaire

A questionnaire is a way of bringing out the thoughts, beliefs, perceptions, experiences, or viewpoints of some section of individuals. A questionnaire is most commonly an extremely brief, predetermined assortment of questions created to procure detailed information to correspond to a specific requirement for the research information concerning a relevant subject. The research information is procured from the respondents usually from an associated and correlated interest sphere. There are a number of advantages as well as disadvantages to the use of questionnaires as a data collection tool. Some of them are listed below.

Advantages

• All responders are provided with the same set of questions written in precisely the same way. Thus, questionnaires are capable of producing more comparable data as compared to the information procured by means of an interview.
• If the queries are structured properly and the circumstances under which they are responded to be controlled, then the questionnaire can be standardized.

Disadvantages

• Respondent’s impetus is hard to evaluate, thus impacting the validity of the responses received.

Resources

Personal networking is an important element in this context because with such mode it is possible to understand the pace and atmosphere of the team members and thus, it can be geared accordingly if needed without wasting time. For the purpose of study it is logical use these three methods.

FACE-TO-FACE meetings – a personal mode of communication, which proves to be very effective when followed or accompanied by written communication. TELEPHONED meetings – very much akin to face-to-face meetings, it allows speech over long distance. E-MAILS – provide an instantaneous mode of written communication with a personal touch, around the globe. (Berkovitch, 2006)

All these methods are extremely cost effective and as these would be easily accessible, it is logical to use these. Furthermore, it has been decided to use a small urban segment for analysis. Thus, it would be possible to arrange the entire participants of the test in a comparatively smaller locality. Thus, cost concerning travelling was also negated. Sure, it was possible to include web based survey but it would not be cost effective and such huge amount of data is not needed for the survey. The procedure of success depends on the personal touch of the leader that motivates the members. Be it warm greetings in the morning or setting a well formulated short-termed goal, it is essential to know every details of the team and that is the only way to “manage up” the problems and succeed. Overall, apart from general items like printouts and other subsidiary cost the total expense is very low.

Piloting

Piloting of questionnaires was used on a small group of people where there were 20 participants. This was to understand the mode of usage of the questionnaires. It is to be noted that the pilot questionnaires came out with success as the results obtained during the process was satisfactory. This gave the impetus to carry on with the questionnaires on a larger scale.

Conclusion

The questionnaire was meticulously constructed taking into consideration the factors that influence the response rate from respondents. A variety of reasons for time overruns in construction projects were found out in the preliminary phases of the investigation by means of a comprehensive literature review and individual interviews carried out with many area of the issue. These reasons for these influences were subsequently structured to fabricate a comprehensive survey questionnaire. The respondents were asked to rate the reasons of the basis of their frequency of occurrence and seriousness of implications for the construction projects on a pre defined scale. In addition, the respondents were also encouraged to provide their own inputs in a column provided for individual observations or remarks. The questionnaire also consisted of a dedicated section for gathering personal information of the respondent. This section revealed statistics about his / her experience level in the construction industry, type of project currently associated with and major projects worked on in the past, the organizational position assumed by the respondent, etc.

Finding and Analysis

Introduction

The analysis reveals that the Russian consumers are going through a period of turmoil while the market continues to rapidly change. Some welcome the change; others are nostalgic while many fall in between. It is a basic condition of history this swing between change and resistance to it.

Type A

The first type of consumer, Type A, is practical focusing on quality as well as price with more importance being given to the former. Type A will give time to choose but will not be influenced by brand names. In fact Type A is anti-bias and lays more weight on inherent qualities, enjoys decision making and being wooed by the seller. This makes Type A opt from small, easily located shops having personal service and abhors malls. Thus Type A is the ideal candidate for home delivery or discount stores. Type A is not bothered about whether the stuff is imported or not and will easily respond to attractive packages.

Type B

Type B are the frugal shoppers cautious about marketers trusting none except their eyes. Price drives their choices and they are not status conscious. In Russia this type is rooted to their generic past of frugality and simplicity. They abhor advertising, ignore packaging and brands. Russian goods are given preference but price differences are likely to sway Type A except that they do not consider shopping as social outing – they are more practical and pragmatic in their approach. This type is generally a male who relies on the wife to do the shopping and at the most takes some decisions from the home.

Type C

When shopping is absolutely necessary Type C gives importance to price, convenience of the shop and will sacrifice value for it. Type C is amenable to advertising, makes no difference between imported and home products, is allergic to promotions and personal sales talk.

Type D

The New Russians can be categorized as Type D – whimsical and the darling of marketers. They go by brands attracted to high prices associating it with prestige. They consume conspicuously and live by three words – expense, prestige and convenience. They never bargain and include shopping as part of their social milieu. Type D lays more stress on perceived value rather than intrinsic value. They are easy targets for those peddling non-Russian products. They lap up sales talk and ignore impersonal advertising. They are the ideal candidates for one-to-one strategy of marketing. They are ones who are pushing the sales of foreign cars in Russia today.

Analysis

The term New Russian is derogatively used against the new affluent small group. It is assumed that they have come across wealth by blatant illegal means and want to display it in a vulgar fashion. They are envied but despised. This group though small has a significant impact on the market. Thus the consumers can be segmented in the same manner as their Western counterparts. The shoppers are driven by the same pursuits as their counterparts in the West. But they are less set in their grooves because of the new environment of the country.

The interview section included the Administrators, Managers, marketing experts and Scholar, senior managers and obviously the customers and users. The involvement of the administrators is a logical conclusion, as this is the main stronghold that would be able to render the impetus of the market with his valued opinions. It should be noted that the interviews of the organization managers was very helpful as they are the personnel who directly understand the ground reality of the nature and feasibility of the game plans established in the market segments of the advertisements and media influence. Business, IT and HR scholars and experts are also important for the basic strategy development. These people were able to provide the theoretical framework of entire project. Interviews of the senior administrators, Journalists and retailer are very important because not only these people are well respected and their words highly valued, these are the people who are able to influence the structure of the market segment with their experience and insights. (Auster, 2006)

To sum it up it should be mentioned that the survey involved client interviews, client’s strategic customer interview, company records, secondary research through the Internet and university database, it will used strategic analysis tools for development of the marketing plan through survey analysis. In this context, it should also be mentioned that the purpose of the project is formulated in a mutually beneficial way such that from an academic perspective there would be a huge gain in the context of valuable experience, and simultaneously add value by providing insights as well as a fresh & objective outlook on any matter relevant to the organization. (Rondinelli, 2000)

Result

What are the techniques and strategies of media houses to influence the Russian consumer?

Introduction

There was a time when the Soviet economy works as a factory where raw resources were transformed into weaponries and artilleries using huge Russian labor force. The best resources were only made available to the arms factories and least for the consumer-goods and light industries.

But now a day’s busy road of Red Square tells a different story. The frustration of common people due to the negligence shown towards consumer market decay after decay made up a platform full of scopes and opportunities for the upcoming new companies in Russia.

Now according to Government statistical report 2002, the average consumer goods spending is 85% of the total expenditure for any middle-class Russian family. And the consumer goods market is worth $ 260 million to $ 270Million which is one of the fastest growing largest markets in the world.

Now to reach such a large market, large bureaucratic Russian mass media houses gets the priority to the upcoming Russian inbound companies and the foreign brands by means of the main stream mass media like television newspaper, radio and even the internet and social network.-

In order to evaluate most efficient way to communicate with the consumer and to increase the probability of getting heard in this large Russian market and most of all getting the Russian media coverage, the companies start framing and developing their media strategies fashioned by lucrative media ways.

And even the companies without the any human resource authority stared depending on some media scholars and consultancy to deal with their public communication affair.

These investments done worked as fertilizer for the media houses. Increased opportunity both in the market and media sector and an increased urge to lead a luxurious life style for the Russian consumers are going to be the immediate inferences of these media strategies which later on worked as the measurement scale for the organization’s impact on market.

Purpose

A media tactic is nothing but a channel line or a program that direct one association to interrelate with the targeted populace with the help of media possessions. It helps to ensure that the massage set by one organization is well planed and consistent enough to fetch targeted audience. It also ensures the purposefully construction and manage of public image as well as media relationship, so that the organization must be provided with a social platform to launch a campaign and also can provide an initial impact on the market.

But competition starts increasing with the increasing frustration and demand of Russian people. And day by day the new comers along with the old banners start coming with new efficient and competitive media strategies to capture this huge market and grow up their business. As a result opportunity starts building up in media sectors.

Now to make these general media strategies successful, few basic steps that are needed to be performed with proper concern for these companies are as following:

Setting up the future goal

Media communication strategies are best judged when it is tested in the light of the long term and short term missions of the organizations keeping the challenges and competitions in mind. So before establishing the strategies it is important to set the idea that what is the expected outcome should be in short time and achievements in distant future also. Other wise even with the proper Russian man power and planning the media strategies are not going establish any mark in the huge Russian consumer market.

Selecting proper persons both inbound and outbound to develop the strategies

Selecting the concerned person both inside and outside the company is also a vital point for developing strategies because they are going to be the only voice to fix the company policies to meet the common peoples demand. Companies with a Human Resource department have a slight advantage on this point. But other companies started hiring media consultant to develop the media strategies using their methods.

Designing the flow charts for these media strategies

After setting up the organization’s short and long term goals and developing the policies required to achieve them with the help of proper personnel it is time to outline the flowchart for the media campaign to influence people in best possible way. For this purpose it is necessary to decide that to what extent and how the media resources should be engaged with the company strategies to achieve best result. In this respect also fixing the target that must be achieved using the maximum help from media is going to get the highest priority. But for best result these goals must have to be specific, realistic which are quite achievable with respect to a stipulated time limit. For example increasing query by a fixed percentage in a month or getting coverage of certain percentage of media etc.

Identifying the group of consumers

With all the strategies set with proper man power some times the media campaigns fail to deliver the expected impact on the market due to wrong identification of the group of consumers To Whom It May Concern. Only companies with proper market research team can identify the proper zone of the consumers as the target audience over whom the strategies will work and best to make the achievements really possible.

Deciding the theme of media campaign

Keeping the targeted consumer zone in mind setting up the real massage which is to be conveyed to the market and the people is also one important part of the entire scenario. The internal policies never revealed to the people. So the punch line or the theme of the campaign has to be attractive to the people and the purpose must have to hit the bull’s eye of consumer’s core concern to make them realize the real big scenario.

Finally approaching the right way to reach people

Since the consumers of Russia awaited long enough to get a good house hold market for betterment of their domestic life. So there was not very chance of trial for the companies at the begging. But one thing that the companies kept in mind that if the media resources along with proper strategies and research report the proper massages can be communicated to the targeted consumer group the business will surely going to start with a bang and flourish like a storm. In this respect proper selection of main media resources (that is newspaper, TV, radio, internet) to convey the massage best to the targeted audience is one of the vital point to decide.

The purpose of our research work is to measure the for successful implementation of the above mentioned fundamental base for Russian media strategies and evaluation of the effect on Russian domestic life from the view point of purchase limit and cost of living index on the basis of the implemented media policies.

Method

The research is based on a survey over a stipulated homogenous population group of 100 people belonging to different occupation and life style. It is taken for granted that the chosen group must have well access to and can interpret the commercial massages conveyed through the general main stream mass media resources like Magazines, Newspaper, TV, Radio and Internet.

The entire survey is conduced on the basis of three parameters:

1. Gender
2. Income
3. Profession

Two companies VIVAKI (STARCOM, MEDIAVEST, ZENITH OPTIMEDIA) and INTERPUBLIC MEDIABRANDS (INITIATIVE, UNIVERSAL MCCANN) are selected here for survey. The questionnaire made on the basis of some basic criteria. The respondent (i.e. employees of the company VIVAKI (STARCOM, MEDIAVEST, ZENITH OPTIMEDIA) and INTERPUBLIC MEDIABRANDS (INITIATIVE, UNIVERSAL MCCANN)) who obey three of the following criteria are taken into account.

• I am aware of all the leading media resources
• I can interpret general consumer approach efforts done by the media hubs
• I am giving unbiased answers.

The survey report obtained is scrutinized then normalized to develop a sample survey report which can give an expected idea to measure the extent of Russian media house’s strategies and technologies to impose aspects of it.

On the basis Of income Zone and Occupation

Here the impact of media ads on the Russian consumers is categorized into three categories as mentioned before. The first one is based on different income zone.

The 100 employees taken from two companies’ VIVAKI (STARCOM, MEDIAVEST, ZENITH OPTIMEDIA) and INTERPUBLIC MEDIABRANDS (INITIATIVE, UNIVERSAL MCCANN) belong to different occupation [such as Administrator, Executive, Clerical, and media scholars] and hence belong to different pay scale.

From the mentioned questionnaire different media ad resources came up as vital medium that is frequently used by the media houses to reach the people.

Apart from the newspaper, TV, Radio, Hording, few new trends like Tele marketing and web site ads started making their mark on Russian consumers.

Chart: 1

The Chart 1 shows the number of person among the 100 respondent who are influenced by different media ads and fig: 1 shows the graphical representation of the chart revealing percentile measurement of each category.

Important points raveled

• Audio visual media like TV and Radio are doing parity good job for this media houses and in average 25% of all the pay scale people is influenced by T.V ads in case of purchasing new product or brand changing.
• Still the printed medium (daily newspapers and magazines) influencing the people the most among all the resources. The lower pay scale people (25k – 1 LAC) like general employees and clerical peoples are mostly influenced by this which is as high as 38%. The mid zone people are still finding the printing media more reliable and the impact percentage is almost high as 30% in average.
• Though hording an old fashion to draw market but an upcoming media resource start making a good mark in the form of Internet. Websites and search engines with good product review able to fetching consumer’s faith with fair enough percentages of impact of 18%.
• Tele marketing doing the jobs for the marketing department of the organizations. But only the high life style people like management people and administrators are relying to some extent. The lower zone is still avoiding it.
• Since budget is big factor for the lower zone so few of them still are influenced by others but most people believe on their own judgment.

Chart:2

On the basis of sex

This research is also done on the basis of sex with 60% of male consumer and 40% female consumer. The above graphical representation (fig:2) shows the percentile report of the impact and the chart shows the research result.

Important points raveled

• Most male being good newspaper reader is mostly affected by the ad given through the printed media and percentage is high as 40%. On the other hand female consumers keep their faith on magazines.
• Here also website is arising as the next generation media approach for the media houses. Because both male and female consumers are following it with a high percentage of 18 and 15 respectively
• Hoarding is followed by the men where as females still believe in their gossips and telemarketing is mostly popular among them.
• TV and Radio is the main media ad attractor both for male and female with an average high percentage of 26 for male and 40% female.

General Overview

The main media resources like Newspaper, Magazines, TV, and Radio are still the zone for the media hubs to reach most Russian consumer and websites and internet search engines is rising as the next generation superstar. But the good thing is people started believing the media resources than words from other

Impact of Audio Visual media Russian Consumer

This variation mostly deviate while measured on the basis of sex than on the basis of occupation or income level.

The test of Russian male and females fluctuate in a big manner

TV and Radio come up as the prime medium for the media houses as obtained from the previous surveys. Now this report will show the real effects.

The chart below shows the report and the graph shows the percentile report. The points that are coming up as the vital aspects are

Chart: 3

• Celebrity and model acted ads are though old approach for world big media consultancy still it is effective for the Russian media hubs. 23% of male 30% of female consumers are still find good aspects of TV ads and campaigns acted by celebrities and model
• But the upcoming thing that is more effective for the consumers are the themes and ideas of the ads. Ads with intellectual ideas and modern product based themes along with quality overview fetching consumers towards new launched product more than any other aspects.
• Some times the punch line or well stated captions also show effects on the people. 38% of male and 30% female are attracted by these efforts.

Impact of Website as raising media resource

With considerably strict Russian government internet policy, the websites, with consumer product information, is rising as very utility medium for the Russian media hubs and consumers.

The web ads and email ads online shopping are making their mark on the consumers is revealed already. But another sector where websites are way ahead is the field of product guidance.

The old systems like customer support (24%) and user manual specifications (23%) are really old fashion for the Russian customers. 38% of customers are taking help from the websites reviews as this survey ravels.

Limitations

This survey is a small cast survey based on 100 employees of VIVAKI (STARCOM, MEDIAVEST, ZENITH OPTIMEDIA) and INTERPUBLIC MEDIABRANDS (INITIATIVE, UNIVERSAL MCCANN) companies. The pay region of the two companies is also rigid. So only a partial overview can be drawn from it. If population size increases and pay roll zones become flexible more specific inference can be drawn from that.

• The male and female both is working person with good salaries here. So their approach to the consumer market is more aggressive than the non professional peoples. So their test will also differ in different way. This fact is not taken into account.
• The age limit for the respondents here is stipulated in between 20 hardly 55 hardly which is not a flexible limit for the Russian consumer market.
• The only few occupation categories are included in this survey. Include more consumer from other different occupation will develop more generalized report.

Evaluation

Media always imposes a sheer impact on Russian domestic life. But commercialization of the media efforts, with the help of new born consumer product organizations, making a new era all together.

The points that revealed from the survey:

• Celebrity based ads are old fashioned and ads with product specification and utility review fashioned by some attractive campaign theme and catchy punch line or caption are getting more effective.
• Young generation of Russia believes on internet websites and search engines for product review.
• Money wastage on big hoarding can be sorted out through good magazine review.
• Discount coupons or attractive amount of sale advertisement with free gifts are pulling crowed but not for long time. Because the general Russian consumers are sensible enough to give priority to quality and price than the ads.
• Wasting time behind tale-support unit can be sorted out utilizing the media efforts behind website developing and managing and providing good product overview. Media houses thus can remain one step ahead towards the future.

Most off all, the entire market start believing on the media reports and strategies than to keep faith on other people as man to man choice changes. If this process goes on media hubs will take over the entire market platform for the companies with huge crowed pulling ability. And in future any relaxation in internet policy by Russian government will develop this market wide open for the media hubs.

Conclusion

There was a plethora of forceful and sometimes unethical advertisement barraging the consumers. It led to legal measures being taken to protect the rights of consumers. It is now banned to sell imported food without giving details in Russian. The movement concerning consumer rights is gathering strength. Consumers too have had bitter experience with purchase of previous so called imported stuff and they have become cautious. Consequently they are going back to domestic brands. As a result foreign producers are now stepping up their competitive tactics. The trade groups are giving preference to operating with suppliers in foreign products because of consignment arrangement. The demand of consumer demand is shifting forward towards improved quality and more stylish goods. Today the consumer in Russia is on an exploring spree trying to locate new areas. For about four generations Russians did not know about a free market system. They were also taught to believe that it was something morally wrong. Suddenly, without practically any warning or notice, Perestroika burst upon the scene reversing the official stand. But the mind and opinions of the public cannot be changed overnight. It cannot be said with certainty that these niches would continue to remain the same against a background of dynamic changes. Recently there has been a move away from imported stuff to quality producing home goods. Better marketing and attractive packages have led to the development of this trend. A feeling of national pride has crept in. But basically it can be said that this is because of the maturation of consumers in Russia. The consumer population is becoming more sophisticated with the passage of each year.

Suggestions and recommendations

Test result evaluation

In accordance to the basic test selected it could be stated that it was possible that the outcome is relatively logical in the sense that it would ultimately follow the trends of social facilitation theory in marketing and thus it is agreeable with the statistical method and thus a well formulated marketing strategy can be constructed for the benefit of the interdepartmental process of communication system for the Russian market and companies. However, it should be stated that there were few independent variables in the context of the test that could not be explained by the statistical method statements. Here the ethical consideration of the potential customers or the ethnic background of the potential customers may not be a very relevant factor. Thus, there could be some flaws to the collection of the population but if these aspects are kept in mind then the shortcomings would easily be negotiated during the ultimate computations. As a result, the test appears to be a full proofed measure that would be able to define and prove the fundamental aspects and statistical method applied. (Umpleby, 2006)

As descriptions of statistical methods that is used it could be stated that in order to isolate the results for this particular study, only a survey questionnaire done would was utilized. These questionnaires were delivered to potential customers and retailers along with the administrators of different companies. The results were divided into these same categories to ensure validity and reliability. General information about identifiers was utilized in order to ensure that there would be no bias. This information provided the researcher with a more clarified view of perceptions about the possibility and impact of market penetration and usage of the inter market process of communication system in accordance to layer of consumer oriented formulation.

Final finding

The final finding is that advertising moulds public awareness, aspirations as well as the socio cultural environment. Yet, there needs to be better use of decision aids so as to enhance the message relevance factor. Tools like emblems and logos contribute to the symbolic experiences with a brand. These experiences are largely the result of indirect observations and may come in different forms. A few examples for such symbolic experiences include making contacts with brand advertising, participating in a sponsored event, observing a specific type of brand user or just simply obtaining word-of-mouth information from friends and neighbours. Distinguishing between indirect (symbolic) and direct (personal) experiences is a daunting, yet useful task when there is a need to apply an approach that deals with direct experiences. This is owing to the fact that direct experiences have a more pronounced influence on the customer’s judgment. (Saren, 2006)

Therefore, this dissertation shows that advertising is a measure in brand building and brand equity which may be used to bridge the gap between the customer’s attitude toward the ad and his or her attitude toward the brand. In terms of influencing attitudes and carrying out effective persuasion, the CONSUMER BEHAVIOUR THEORY may be primarily defined as a heuristic instrument for the brand manager. This instrument can be used for mental stimulation of the effect of marketing measures on customer-based brand equity, so as to create brand equity through the right sources and a broader base of brand knowledge in context of brand identity.

Apart from boasting of post modernism trends, the media’s tryst with modernity has more to do with featuring the public sphere in its functioning, more than anything else. This has wide implications as far as moulding aspirations is concerned. In this regard, the advertising practices of high street retailers play a large role in moulding aspirations in the public sphere as well as setting standards that will decide the course of consumerism patterns as well as practices within markets and entire economies. This is owing to the fact that as a medium through which the exchange of ideas regarding cultures and ideals takes place, the media is steadily reclaiming its share of the public sphere.

Academic Range of Study

Following is the model that should be followed for advertising in case of high street retailers for perfect use of decision aids. This is an indication how media influences the mass in Russia. The academic range of study pinpoints the steps through which the Russian population moves from viewing an advertisement, to becoming influenced and ultimately is drawn towards buying the product.

Recommendations for Further Research

In this regard, it would be imperative to state that the public sphere has emerged as a vital measure of the trends of global village syndrome that have been playing with mass imagination and decisions thereof. The public sphere has turned into a playground for the phenomenon of globalisation. Globalisation is a phenomenon that has integrated the world beyond the constraints of geographical demarcations and varied cultural identities. It has bloomed as a result of the emergence of the information age and has its genesis in the public sphere. Having emerged as a mechanism of change in the public sphere where modernity through mass media is concerned, the phenomenon of globalisation has its far reaching effects of the conceptualisation and perspectives involved in the study of technological and spatial explosions. (Harari, 2006) Thus further contributes to the importance of the public sphere in the advertising impact of high street retailers.

Domestic Marketing Strategies of Russian Business Houses

By the reports of RECMA, the share of Russian business is averaged into 1.5% which is similar to France and Spain, two countries who are very good in both marketing and advertising. The Vizerum agency has set a world record of 6.6% share.

The list published by RECMA of 23 Russian agencies is really good.

Actually Russian offices are now developing mush faster like the companies. Some companies have now marketing and advertising budgets in the lines of $ 20 million. It is sometimes bigger than the level of spending in other countries in the marketing and advertising sector.

The companies remember that the audience is changing always and for these changing audiences. For the audiences it is very clear that old business strategies will not work. One of the biggest challenges for an advertising company is to devise newer strategies for the changing audience and this is the most hectic tasks too. For this context, the most important thing is the research on demographic and socio-economical changes and this will immensely help the company to decide the future business strategies. Actually according to experts, it is impossible to decide future business strategies without knowing how peoples lifestyles and to be more detailed, lives will change in the next fifteen to twenty years. And in today’s times the world is changing in a very fast motion. To be successful in Russia in business a company needs some special aspects:

1. New Selling Points: The selling point of a company which can work in other places may be in all the Europe and America, can possibly not work out in Russia. Actually it is quite certain that it will not work out. On the other hand some features that are not being publicized as the features of that product can turned out to be the USP of the product in Russia. The company and the marketing people have to find out what will be attractive in Russia.
2. Russifying of the advertising: There is a popular concept that any western advertisement can be changed into Russian language for promotion. But this is a really wrong decision. In the beginning of the discussion we have discussed the problems of the Russian language and to “Russify” any advertisement one needs really very sharp mind and marketing tools.

Some international companies came to Russia and the slogans and trade names when translated became just meaningless. Actually one cannot translate in Russian the slogans like “Just do it” (Nike) or “we are rolling out the wheels”(Microsoft). Another example is of Xerox. The Russian tagline of Xerox was decided as “we taught the world to copy”. The tagline is going to be used in Russia as well as in advertising campaigns in Ukraine and Byelorussia. For Russia the tagline was changed as “The Document Company”. But it also created problems, as most of the common men could not understand English and also the word “Document”, sometimes “Dokumentry” in Russian is ID, and that is used in Russian police vocabulary.

There we can mention the Johnny Walker campaign. Their campaign “we are walking” was huge hit in England and they continued that slogan in Russia, they had spend massive amount of money for promotion and marketing in Russia, but the basic thing is that they forgot to change their promotions according to Russian culture and lifestyle. Actually it was a huge failure.

On the other hand there is also success. Nike, the sports brand came to Russia, when their competitor, Adidas was reigning supreme in Russian market. The Russian people did not know anything about the great sports persons who used to endorse the brand of Nike in United States of America. But with the perfect change of plans and tapping the right pulse in the market they created a niche in Russian market.

But now, Russian Market is improving. In recent times the market is generally dealing with ready made marketing concepts that are readily available in the West and using the concepts for mixed results in many cases. But to be successful in Russia one needs new marketing strategies and different technologies. Actually the Euro-Asian market is a huge market in the world. And Russia is the biggest country among the market. In the changing World, it is needed that Russian companies device their very own marketing strategies for both domestic and international markets and the international companies will have to devise strong strategies for their business in Russia. Actually in the era of Globalization the mixing of cultures can surely be helpful in these means. The critical appreciations of the marketing process, if it is innovative or different in some other way than it will surely catch the eye of common people and they will be interested in the product. This is a really good start for marketing. All the modern avenues of marketing including television, radio and internet have to utilize fully. With adequate marketing Russia can surely reach the pinnacle once they were as they already have great scientific inventions, highly developed R & D features and also intellectual treasure. Modern techniques in advertising and marketing can surely make the country click once again.

Conclusion

In conclusion, it would be imperative to maintain that an individual’s degree of interpretation and evaluation is influenced by the context the media provides. (Mitchell, 2006) In return these viewpoints may be undermined to form a more general consensus and finally a more representative form of the public sphere. With an influence on mass perspectives and the power to unite and integrate the world into a force that thinks and agrees on issues in a unified, unanimous way irrespective of the cultures and lifestyles that occupy a certain corner of the world, the public sphere is one of the most important dimensions when it comes to various features which promote nominal ideals and historical actuality.

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Appendix

Questionnaire

The purpose of the following questionnaire is to make the people think about the strategies and the techniques fashioned by the media houses to influence the Russian consumer value and set a good platform for the new companies as well as the existing brand.

1. What is your Age?
   1. 15-20
   2. 20-25
   3. 25-30
   4. 30-35
   5. Above 35
2. Your sex?
   1. Male
   2. Female
3. What is your occupation?
   1. Administrative
   2. ExecutiveManagerial
   3. EmployeeClerical
   4. Media Scholars
   5. Journalist
4. Income [per annum]
   1. 25K – 1 lac
   2. 1lac – 2 lac
   3. 2lac – 5lac
   4. Above 5.0 lac
5. Which media is your favorite?
   1. Printed [Newspaper, magazines]
   2. Radio
   3. TV
   4. Internet
   5. Other [please specify]
6. How much attention does that media gets from you daily?
   1. Few minutes
   2. One hour
   3. More than one hour
   4. More than four Hour
   5. No time
7. Which media source is more power full do you think?
   1. Printed [Newspaper, magazines]
   2. Radio
   3. TV
   4. Internet
   5. Other [please specify]
8. How you are affected by an advertisement?
   1. Hardly any impact
   2. Positive impact
   3. Increase fair amount of interest
   4. Generate desire for purchasing/exploring
9. Which advertisement form leaves more impact on you?
   1. Printed Words
   2. Hording
   3. Graphical with sound effect
   4. Graphical with visual effect
   5. Moving action oriented
10. Do you ever changed or trialed a new consumer brand due to ad impact?
    1. Yes
    2. No
11. How often do you purchase the product you see in the ad?
    1. Hardly
    2. Most of the times
    3. Sometimes
    4. Always
12. Time spent by you watching TV per day?
    1. 0 hr-1hr
    2. 1 hr-2 hr
    3. 2 hr-5 hr
    4. more than 5 hr
13. Which TV ads aspect affects you most?
    1. Celebrities
    2. Models
    3. Product punch line
    4. Theme/Idea
    5. Caption
    6. Photography/Animation
14. What impact does a celebrity in TV ad leaves on your mind?
    1. No effect
    2. Big brand company
    3. High Quality product
    4. Expensive product
    5. Give good competition in the market
15. How frequently do you listen to the radio in a week?
    1. Hardly
    2. Once a week
    3. Often while driving or traveling
    4. Everyday
16. Are the Radio Ads attractive to you?
    1. Yes
    2. No
17. Do the radio ads create any desire for purchasing any product?
    1. Never
    2. Some times
    3. Strong desire
18. Do you read daily newspaper everyday?
    1. No
    2. Some times
    3. Every day
19. Do you ever use newspaper discount/gift coupons or ads?
    1. No
    2. Often
    3. Sometimes
20. Do you get the same discount or the quality of any product as printed on the newspaper ads?
    1. No idea
    2. Some times
    3. Often
    4. Every time
21. Are the big hoardings good enough to catch your eyes?
    1. Yes
    2. No
22. Which hoardings you can recall quickly?
    1. In Bus stops/Rail stations/Air port
    2. Near home
    3. Near working place
    4. Near frequently visited place
    5. Can’t remember
23. Which media ads are more reliable to you most?
    1. Television ads
    2. Radio/FM ads
    3. News Paper Ads
    4. Hoarding
    5. Recommendation from closed ones
24. Reason for preferring one brand or product
    1. Ads by celebrities
    2. Price range
    3. Quality
    4. Product Verities
    5. Discount offered
    6. free gifts
25. How do you manage if further information (regarding utility or quality) is need about the purchased product?
    1. User manual
    2. Website
    3. Customer support
    4. Sales person
    5. Guide from other users