Reaching the Consumer in Russia

Overview by

Marketing Opportunities

Growing Sectors
Medicines, furniture, cosmetics, clothing, electrical appliances, automobile.
Consumer Behavior
The consumer is impulsive.
He attaches great importance to brands and the quality of a product, as well as its life span for people with a modest income. The price is often only secondary but Russians are nevertheless attracted to "bargains".
Consumer Profile and Purchasing Power
Russians do not save very much and this is expecially due to the bank system's lack of reliability. They often spend more than 80% of their income.
The emerging middle class includes 25 million inhabitants and generates 80% of demand in the country. They appreciate the western way of life.
Consumer Recourse to Credit
The use of consumer credit is widespread.
Consumers Associations
SPROS , The Russian consumer federation

Media in Which to Advertise

Television is the main source of information for most of the population, especially in the provinces. Be aware, however, that only a few channels have a national audience.

Main Televisions
CTC (STS) - Commonwealth of TV Companies
NTV- Ch. 4
ORT- Russian Public TV
Rossia- RTR (VGTRK) / Russian State TV & Radio
TNT Network
Consumers can be reached all over the country, and specific populations can be targeted thanks to specialized publications.
Bilingual publications in Moscow and St Petersburg can inform businessmen and foreign diplomats.

This market represented 6.3% of advertising turnover in 2004. Like the other vectors, it is in constant progress, estimated at +50% per year.
Its main advantage lies in its relatively low cost as well as its impact country-wide on all levels of income.

In Transportation Venues
Billboards are widespread, in particular in large cities and on their outskirts, along motorways and in the metro.
Impact is strong but very localized. Because so many people use it, the Moscow metro is a particularly interesting proposition.

Market Leaders:
The Moscow city government website
St Petersburg Official Website
Moscow Metro
Radio is an interesting alternative to television; its cost is much lower and it has a relatively wide audience.

Main Radios
Russkoe Radio
Avto Radio
Nashe Radio
Europa Plus
Dinamit FM
Echo Moskva
Radio Mayak
Hit FM
New Technologies (E-Marketing, SMS, etc.)
Advertising on Internet is still comparatively uncommon, but it is growing fast. Turnover has doubled approximately every year since 2006.
For the moment it reaches above all the urban, relatively well-off, population, but its impact is increasing with the number of Internet users.

Market Leaders:
Begun, context-sensitive advertising
Main Advertising Agencies
News Outdoor, a subsidiary of NewsCorp
Magma, a member of the Media Arts Group, a subsidiary of Publicis
List of agencies which are members of the WWP group
ADV Group

Main Principles of Advertising Regulations

In accordance with the law of 13 March 2006, advertising for alcoholic drinks must mention the harmful nature of these products. The law sets out that it is prohibited to make drinking alcohol seem like an essential part of social life, as well as to target minors (especially by using them as actors in advertisements). Other regulations concern the places authorized for this sort of adverts (for example, they are prohibited in schools, on the front and back pages of newspapers, in cinemas, in public transport, etc.).
The legislation on tobacco advertising is similar to alcohol, in compliance with article 23 of the law.
It is prohibited : to give concrete examples of people who are satisfied with a certain pharmaceutical product or medicine; to encourage people in good health to take a medicine (with the exception of preventive medicines); to question the need to consult a doctor; to emphasize the effectiveness of a product or the absence of side effects; to conceal the pharmaceutical nature of a product. Some of these provisions also apply to medical services.
Other Rules
As a general rule, advertising must be "bona fide and authentic". The law mentioned above contains particular provisions concerning the different means of communication and defines measures for the protection of minors.
Use of Foreign Languages in Advertisement
The use of foreign words in an advertisement is prohibited if it risks changing the meaning of the information given.
Organizations Regulating Advertising
The federal anti-monopoly service (FAS)

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