Business Case Studies, Market Entry Strategies Case Study, Coca-Cola in Russia, Expecting Fat Growth in a Flat Economy

print page
Tell A Friend
Bookmark
 

Case Categories

Market Entry Strategies Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Coca-Cola in Russia: Expecting Fat Growth in a Flat Economy?

Publication Year : 2009

Authors: Swapna Pragada & P. Girija

Industry: Beverages

Region:Russia

Case Code: MES0087

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study
OR





Abstract:

This case deals with the strategies adopted by Coca-Cola (Coke) in Russia to sustain its business during the economic downturn. Russia, known to be a socialist country, transformed itself into a transition economy by opening doors to foreign investment. As a result, MNCs forayed into the country amidst challenges posed by the ethnocentric consumer behaviour. But in Russia, consumerism was very peculiar. On one hand, there were consumers who swore not to embrace foreign brands and on the other, there were consumers who preferred foreign brands but were restricted from using them.

Post-1990s, with the entry of MNCs, consumers started using foreign brands extensively. This trend in consumerism helped Coke to make profits and become a major player in the Russian beverage industry, though it was not accepted by the Russians earlier for being a US company. However, the industry which is driven by consumer tastes to a large extent, has been badly hit due to global economic crisis in 2008. In order to attract consumers who are spending less on beverages, Coke has come up with a number of innovative strategies. Instead of cutting down its expenditure, it is spending more on advertisements in order to boost sales and increase profit. However, the big question is, to what extent is it feasible for Coke to bet on the market of Russia during the economic downturn?

Pedagogical Objectives:

  • To understand the background of the Russian beverage industry
  • To understand the growth and expansion of Coke in Russia
  • To assess the viability of the strategies adopted by Coke to survive the slowdown in Russian economy.

Keywords : Market Entry, Market Entry Strategies, Business Environment, Beverage Market, Beverage Market in Russia, Coca Cola in Russia, Competitive Strategy, Innovation, Expansion Strategy, Russia Beverage Industry.

Contents : 
Beverage Market in Russia
Consumer Price Index and Growth of Nominal Wages
Market Share of Top Sellers of Non-alcoholic Beverages in Russia
Volume of Coca-Cola Consumed in Russia
Change in Volume of Non-alcoholic Beverages in Emerging Countries
Contribution of the Emerging Markets to the World GDP

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap