In Russia

OutlineOutline• About Church’s• 5C analysis of Russia• Campaign objectives• Positioning / Message creation• Media

• Church’sChurch’s is a legendary luxury British brand• It was founded in 1873• From the production of handmade man’s shoes to Luxury

footwear brand • It has operations in over 15 countries worldwide

RussiaRussia as a countryas a countryGDP has grown by an average of 7% a year Unemployment rate: 8.4% (2009 est.)Income growth rate: 5.20%Inflation Rate: 7.00%Resource: http://www.tradingeconomics.com

Russian Luxury Market: Russian Luxury Market: The 4th luxury market in the world15% growth per year The volume of market is 3-4 billion GBP15% of whole market of clothes and shoes

Competitors & Distributors Competitors & Distributors More than 120 luxury brandsEight of 40 top luxury brands can be as competitors

“While all major brands are now present in the Russian market, the opportunity for some smaller players in the luxury sector is huge.” (Schimel, A., head of the French men's fashion house Zilli, 2008)

80% of market is taken up by only 5 Russian distributorswith exclusive procurement

Customer-Market segmentsCustomer-Market segmentsMass Elite:0,90% - of population / 1 200 000 people11% - of overall income

Target profile:Males, 45-50 year oldIncome from £45 000 per year and aboveBusiness owners, Top management, professionals

Benefits:Exclusiveness, Quality, and the Value of goods

Motivation- Decision making:Question of prestige Status products

Church’s in RussiaChurch’s in Russia

• Moscow, Stoleshnikov pereulok• ROI = 7.15 % (on the 5th year)• Payback period = 5 years• Marketing budget for the year= £ 750,000

Objectives and MediaObjectivesObjectives

Short term objective (3 months) –>

Create awareness

Short term objective (3 months) –>

Create awareness

Long term objective (1 year) –>

Increase Sales & Profitability

Long term objective (1 year) –>

Increase Sales & Profitability

Company objective-> Increase market shareCompany objective-> Increase market share

Media for Launch

InternetInternet

43.6 million Internet users in

Russia

43.6 million Internet users in

Russia

Rising popularity of shoes &

fashion blogs

Rising popularity of shoes &

fashion blogs

Internet spending to reach

RUB 600 bn

Internet spending to reach

RUB 600 bn

Internet advertising will

be in fashion and shoe blogs

Internet advertising will

be in fashion and shoe blogs

Campaign Planning & BudgetTOOLS TYPE Estimated cost

Advertising  

Short term 　 Internet £ 15,000

Long term Magazines £ 100,000

Long term Internet £ 15,000

Long term Exhibitions/Sponsorships £ 50,000

Sales promotion  

Short term Launching campaign with celebrity endorser

£ 50,000

Long term Celebrity endorsement £ 500,000

Public relations  

Short term Press release (newspapers) £ 20,000

Total budget : Short term

  £ 85,000

Total budget: Long term

  £ 665,000

Brand Positioning →Unique selling point

Launching campaign

Opening event

Celebrity endorsement – Brand ambassador (Pierce Brosnan)

Craftsmen in Store

200 VIP guests (influential Russian Businessmen, Govt. officials, Russian celebrities, Press & Fashion and shoe Bloggers

Launching campaign

Advertising AppealThe soul of our campaign lies in creating an emotional bond with the customers.

Emotional Appeal:

Ambition, Recognition, Status, Pleasure - to represent Church’s customers emotions to wear high-end footwear.-to represent the brand’s dignity in history

CostCost of entryof entry

Conclusion

PAYBACK PERIOD = 5 YEARS

Marketing budget (for the whole year)= £750,000

ROI= 7.15%

THANK YOU!

QUESTIONS/COMMENTS?

PREPARED BY: EKATERINA SPIRINAFARIZA MOZUMDERFANG-YAO-HUANGPAKAMON KIJSIRAPATPEI-YI HSIAO

References:References:• Aginsky, Alexander. (2008), Market and Industry Report: Russian and Ukrainian Watch Market, Russian

blog [blog] 23 July, Available at: <http://www.russiablog.org/2008/07/market_and_industry_report_rus_2.php> [Accessed 10 November 2010]

 • Church’s (n.d.), [online] Available at: http://www.church-footwear.com/ [Accessed 15 November 2010] • CIA- The World Factbook (2010), Central Asia: Russia, [online], Available at: <

https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html> [Accessed 12 November 2010] • Citibank (2010), Russians To Spend RUB 600 bn on Internet purchases in 2010, [online], Available at: <

http://www.citibank.ru/russia/news/eng/269.htm> [Accessed 25 November 2010] • Fill Chris (2005), Marketing Communications, Fourth Edition, FT Prentice Hall, London • Fashioner Information Analytical Agency (2010), Russian Market of Luxury Clothing and Accessories

2009, RUSSIAN CFA MARKET EXPERTS, St.Petersburg, Russia  • Koslow, Brian. (2008), What Makes a Man, Men’s fashion blog [blog] 22 September, Available at: <

http://www.whatmakesaman.net/wordpress/2008/09/22/10-classic-english-shoemakers-part-2-the-traditional-brands/> [Accessed 10 November 2010]

References:References:• Petukhova, Ekaterina. (2010), A Reviving Russian Luxury Market, Luxury society blog [blog], 13

September, Available at: <http://luxurysociety.com/articles/2010/09/a-reviving-russian-luxury-market> [Accessed 12 November]

• RT News (2010), Prada to open new flagship store in Moscow, [online] Available at: <http://rt.com/business/news/prada-luxury-retail-moscow/> [Accessed 15 November 2010]

• Slavina, K. (2007), Report Russia 2007:Russian Luxury Goods Market, Swiss Business Hub Russia, [online] Available at: www.osec.ch/sbhrussia [Accessed 10 November 2010]

• Yaremenko, Boris. (2010), Russian Billionaires Double Their Wealth, [online], Available at: <http://english.pravda.ru/business/finance/21-04-2010/113101-russian_billionaires-0/> [Accessed 15 November 2010]

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