Entry-marketing strategy for the

Russian market of hair care appliances

Student: Neesa RajbhandariAcademic supervisor: Marion

Wyse

The subject and the purpose of the project

The subject:PBM - English hair appliances company, targeting the Russian market

The purpose:to analyze Russian hair care market and its potentialTo develop an entry marketing strategy for the hair appliances of PBM

PBM company

English based company

Premium class, professional products

OEM company

Spread around the major countries

Stable growth in sales at 7% annually

Operates since 1980

Some of PBM’s products

Market share in England

25%

10%

8%6%5%5%

4%4%

3%1%

29%

Babyliss+Remington

Vidal Sassoon

Nicky Clarke

Revlon

Morphy

Richards

Carmen

Braun

Philips

PBM

Other

Russian market

15-17% market growth in 2005

Slowing growth in the coming years

Preference to buy home appliance in a well-known retail chain

Fierce competition

Slowing growth of beauty salons

Market structure

SWOT

Strengths WeaknessesS2 Innovative and top quality professional appliances products

S3 Stable growth of 7 % in sales annually

W1 Absence of established direct marketing channels with Russian distributors

W2 Absence of company and brand awareness on the market

Opportunities ThreatsO1 Foreign brands are more popular among consumers and believed to be of a higher quality

O4 Higher control of the imported electronic appliances – less grey market products

T1 Slowing growth of the hair care appliances industry

T3 Fierce competition in the hair care appliances market both among mass producers and professional hair care

Strategy

4P’s• Product - high quality to prove its

professionalism

• Price - lower on the mass market

• Place - beauty salons of the premium class and huge retail chains

• Promotion – the most important part of the strategy

Promotion

Press and TV – expensive and target audience not reachedMagazines – specialized magazines and target groupsProfessional fairs – highest scope of target groupVideo Magazine – new way of advertisement

Thank You for the Attention!

¿Any questions?