Market Strategy Recommendations

In general, Russian market is heavily regulated and these regulations are complicated. Above other things one can mention that regulating documents are published in Russian language, these documents are issued by different authorities with no common database, regulations are changing to reflect changes in economy and social life. Choosing Distribution Model as main part of Market Strategy means to fall into particular market regulation rules. There is a classification for all products sold in Russia, nominating each product with Product Group Code. Choosing particular Code will define:

- Distribution channel the product can be sold through
- Type of certification
- Labeling
- Customs duties
- Taxation
- Applicable Product storage regulations

Good news is that rules about which product matches which Code are not firm. Often there are several different Product Group Codes available for same product, which gives a manufacturer a possibility to choose Product Group Code for its products based on chosen Distribution Model.

Choosing Distribution model has strong impact on product final street price and profitability. Different Distribution channels have different targeted groups, different sales volumes and different sales dynamics. In some cases it also appears that competition does not utilize some channels that have potential for selling the product, thus giving a newcomer possibility for easy entry.

SOALAR Consulting Recommendations for Market Strategy are based on Business Potential Assessment we perform and are covering Various Areas.

Basic results of Market Strategy Recommendations would be:

1. 1.Understanding product launch timeframe and related expenses
2. 2.Possibility to plan for:
3.      a. Prices
        b. Cost Of Sales
        c. Profitability
4. 3.Understanding Marketing support required