GlowmoréGlowmoré is a Pakistan based Company which manufactures skin care products like Moisturizing cream and cleanser. It’s a newly developing company which tries to enter in a Russian market. Which is one of the biggest market in Skin care products and 5th largest market of the world in skin care.

INTRODUCTION:

REASON BEHIND TARGETING RUSSIA………………….

According to The World Bank Russian Economy has recovered after its recent crises and sees as an increase in income with lower rate of unemployment which is good from economic aspect. And relatively low inflation in 2012 that’s why we choose Russian Market and beyond this Russian consumers are highly price sensitive when we talk about mass beauty and personal care products.

Moreover in 2012 Russia become a WTO member which means tariffs on import taxes will be reduced. And it is beneficial for new companies who wants to enter in a Russian market.

The Ratio of skin care market is 31% in 2013 and in currency RUB 34.40bn in 2009 and it hits in 2013 by RUB 47.10bn. Russian cosmetic market is #5 in world by 3.2% of the total world population, meanwhile Asia is on #1 by 22.8% excluded Japan and China.In personal care skin care is the biggest market by 23.6% ,deodorant has just 1% market share while Perfumes has 22.16%.

PEST ANALYSIS

Poltical and Legal Environment: The Russian political system is one of the more recent to embrace democracy but remains deeply flawed in terms of its democratic credentials, overwhelmingly tainted by corruption, and massively influenced by the power and personality of one man, Vladimir PutinThe politics of Russia (the Russian Federation) takes place in the framework of a federal semi-presidential republic. According to the Constitution of Russia, the President of Russia is head of state, and of a multi-party system with executive power exercised by the government, headed by the Prime Minister, who is appointed by the President with the parliament's approval. Legislative power is vested in the two houses of the Federal Assembly of the Russian Federation, while the President and the government issue numerous legally binding by-laws.

Political Environment of Russia is Quiet positive for new rivals because they tries to establish their market by making a membership with WTO which is a trade favor decision. The trade-weighted average tariff rate is 3.8 percent. Despite concessions made to join the World Trade Organization in 2012, remaining non-tariff barriers distort the flow of goods and services. Except in the oil and gas sector, growth in foreign direct investment has been elusive due to the deficient investment framework. State-owned financial institutions have further solidified their position by taking market share from domestic private banks.

The income tax rate is a flat 13 percent, and the top corporate tax rate is 20 percent. Other taxes include a value-added tax (VAT) and an environmental tax. The overall tax burden equals 27.2 percent of total domestic income. Government spending has decreased to a level equivalent to 39 percent of GDP, turning the budget balance to surplus thanks in part to oil revenues. Public debt has been reduced to under 10 percent of total domestic output.

Economical Condition : of Russia was not so good but it has recovered after its certain crises. According to World Bank Russian Economy looks strong, Going towards positive condition increase in people of income by with lower rate of unemployment , according to different economist slow growth is good as compare to fast growth.

The World Bank projection for Russia’s growth in 2014 remains moderately positive at 3.1 percent. The income level of average person in Russia is $14973 which shows a positive sign for new rivals.

Russian economy is projected to accelerate to 3.1 percent growth in 2014. Global recovery could result in an increase in Russian exports starting in the fourth quarter of 2013, while the World Bank projects oil prices to remain stable at about $105/bbl. Next year’s growth prospects will largely depend on the recovery in Russia's most important economic partner, the Euro Area, and the increased investment activities associated with the recently announced large state investment projects to be financed off-budget. The oil prices will remain stable it represents a good sign that prices of other commodities will also stable or remain flat.Russia is one of the fastest-growing economies in the world. The country’s economy is expected to reach $3.18 trillion by 2018.

Social Condition: Russian social Environment is also in favor for our product they have highly skilled work force and literate, and social unrest due to diversity, the expected life of one Russian men is 59 year so wrinkle free creams will not suits for this market that’s why we didn’t target old age group. Increasing purchasing power – middle class increased,Highest number of billionaires after United States, High literacy rate. Skilled people in medical, space, aviation, mathematical and scientific fields.

Russia has a Wide class division (Socio Economic class) in which it includes A+AB+

B and very minimum number of C’s and D’s.

Technologhical

Russia has a power think tank for scientific research and IT communication. Russia is also fully loaded with different technologies like Storage virtualization, Blade servers, Alternative energy storage, Transformer-less and Modular and Scalable Solutions.

Customer AnalysisIt is important to analyze your customer and their needs before entering in any market or before launching any new product.

Russian consumers continue to be much more rational in terms of spending and save money more carefully than before the crisis. However, they are ready to pay money for guaranteed quality supported by brands. In 2012, the premium segment was the fastest growing supported by the widening penetration of chained retailers selling high-end brands.

According to a Research in 2011 Russian customers are much more rational in term of spending and saving and they are really rand conscious on quality products and premium segment was the fastest growing and supported by the widening penetration.Russian prefer products with natural origin and avoid health damaging products, they recently focus ECO HOUSE technology.

Russian looking for deals, discounts, retail chain new marketing strategies. Behavioral pattern will become more sophisticated when exploring new ways and communicating with direct audience. (Dycheva 2012).

An average income of a Russian is RUB.18083 and they spend RUB 4.90 in 2009 on skin care products which hikes by RUB 7.20 in 2013 which increases with a percentage of 47%, and it increases 8% every year.So here we can easily offer our product to a premium class who spends double from an average consumer which is RUB 19.84,

Customer Needs: of Russian customer in skin care has a wide range in which it includes Pigmentation, Wrinkles, allergic rash, Tinea versicolor, and Superficial fungal infection.There are many other brands who cater the need of those customers who wants their skin wrinkle free, which also becomes a trend world wide. some of them also offer rash cream for face and for other parts of the body, moisturizing cream are also offered by other brands, but not a single company offer a anti-pigmentation cream which is most common in Russia.

Reason Behind Offering Pigmentation Instead of Anti-aging Cream:

The age of an average man in Russia is 59 years due to which mostly population of Russia is considered as younger population, so if we offer a anti aging cream then competition will be enough tough and our target market will be too short, but we analyze that there is no big brand which targeting the pigmentation which is most common disease in Europeon countries and in Russia also. So our market will be quiet enough to serve easily.

SWOT ANALYSIS

We also focus on swot analysis before entering in Russian Market which is important for any company.

STRENGTH : Our strength is a quality of our product and our marketing strategies and promotional activities , quality of our products is best and our marketing strategies will be quiet enough to catch maximum customers, and maximum market share, our promotional activities include upcoming events in Russia.

WEAKNESSES : Our weaknesses are we have a low budget and we are new in to the Russian market and low experienced, so it might be possible we will face a difficulty in certain changes in the market and tackle other problems.

OPPORTUNITIES : Opportunity for us is our target market because there is only few brands like “KPeM” and “Obey Your Body” who caters pigmentation problem and they are not having good Brand image in mind of customer , but we offer 2 in one features a moisturizing cream with anti-pigmentation problem, and one of the kind opportunity we have an upcoming event Christmas on which we will do free promotions and giving free samples on the night of 24th December 2013, after analyzing the customer behavior above so we can easily understand the nature of customers they are very rational and enjoys availing deals and wants new ways of promotion that’s why we found a new way for promotion and we also make a direct sales by launching our SPA outlet in Russia after few months from launching our product.

THREATS: The main threats for our product is a big International, multinational, and domestic giants of skin care available already in Russia in which it includes LOREAL , Kalina and Beiersdorf they can easily adopt our strategies by launching a same product as we offer, which is not offered by themselves as previously.

COMPETITOR AND MARKET ANALYSIS: There are many big alligators in Russia that have a strong brand image in mind of customers and established from decades.

Names Of Existing Rivals

i. L’Oreal *ii. Avon*iii. Kalinaiv. Nevskaya Kosmetikav. Faberlicvi. Arnestvii. Svobodaviii. Vesnaix. Alfa Cosmetics

x. Mezo Plastxi. Unikosmetik

*produce some products locally

These are the main competitors in Russia while some of them are not offering the same product like us.

The market share of imported product with domestic product

Imported product has 70% of Market share while Domestic product has 30% market share. Which is also considered as beneficial for us.

Total Percentage of Market Share of Sales

By analyzing above graph we can easily indicates that Russian mostly prefer Specialized Retail chains that’s why LOREAL and other big brands open their outlets in Russia. By observing this we also decide to open a one spa in Moscow after few months of launching our cream and body cleanser.

MARKETING MIX ELEMENTS

After analyzing above conditions we decide our marketing mix according to them.Marketing Mix includes:

Product Price Place Promotion

PRODUCT

We offer two products in Russia one is Moisturizing cream(plus anti-pigmentation) and second is Cleanser(body lift cleanser)

THE MOISTURIZING CREAM : Our Moisturizing cream is one of the bestest Innovative moisturizing cold cream which contains Marigold, Evening Primrose, Kelp, Macadamia Extracts and Therosol-E.

Our cream provides moisturizing and gives you pigmentation free skin this cream is both for women’s and men’s, while to tackle with pigmentation we observe different research papers to find out different the best solution then we find “Triluma” which is a combination of hydroquinone, tretinoin and corticosteroid. Which is good to fight with pigmentation but after screening and observing different issues we found that “Triluma” combination is banned in different big countries. So we again do a research to find out another solution than after all we found “Therosol-E” which is much better than “Triluma”. “Therosol-E” is aplant discovered by Derma Medics

Scientiests, which reduces the synthesis of tyrosinase in human malanocytes by approximately 75% and also blocks synthesis pathway.

Note: Hyper pigmentation also happens because of Acne.

By the combination of above ingredients we make a wonder full cream which provides glowing skin to our customers. By applying this they become more attractive and more beautiful.

THE CLEANSER: our cleanser is not only a cleanser because it just not a face cleanser but it is a “Body Lift Cleanser” which gives a your skin more shiny and lifts your skin which gives a attractive look it contains: Squalane, GRAPE SEED EXTRACTS (VITIS VINIFERA),ROSEHIP OIL (ROSA CANINA), MULLEIN EXTRACTS (VERBASCUM), AQUA/WATER/EAU, ALCOHOL, DICAPRYLYL CARBONATE, GLYCERINE, CORYLUS AVELLANA (HAZEL) SEED OIL, CAFFEINE, BUTYLENE GLYCOL, HYDROXYETHYL ACRYLATE/SODIUM ACRYLOYLDIMETHYL TAURATE COPOLYMER, COCOS NUCIFERA (COCONUT) OIL, PARFUM/FRAGRANCE, MENTHOL, ESCIN, SODIUM ACRYLATES COPOLYMER, HYDROGENATED POLYISOBUTANE, ATRACTYLOIDES LANCEA ROOT EXTRACT, HDI/TRIMETHYLOL HEXYLLACTONE CROSSPOLYMER, PHOSPHOLIPIDS, CELOSIA CRISTATA EXTRACT, POLYGLYCERYL-10 STEARATE, HELIANTHUS ANNUUS (SUNFLOWER) SEED OIL, METHYLSILANOL MENNURONATE, SCABIOSA ARVENSIS EXTRACT, BACCHARIS GENISTELLOIDES EXTRACT, PHENOXYETHANOL, GERANIUM ROBERTIANIUM EXTRACT, POTASSIUM SORBATE, SODIUM BENZOATE, MENTHA AQUATICA LEAF EXTRACT, SORBIC ACID, SILICA, Cl 14700/RED 4, Cl 17200/RED 33, ASCORBIC ACID [C2193A]

PRICE:

PLACE

PROMOTION

SEGMENTATION

MEDIUM OF TRADE