Over 90% of urban consumers in Russia know a multitude of German brands and show a strong preference for them. German brands are liked among all three social classes represented in the survey – emerging middle class, middle class and upper middle class. It is interesting to point out that German brands are most strongly favored by 94% of the emerging middle class with gross monthly income of RUB 12,000-36,000 (EUR 290-880). This indicates an immense potential for German products and services among the growing urban population in Russia. In total, 1,000 Russian consumers from Moscow, St. Petersburg, Yekaterinburg, Novosibirsk and Nizhny Novgorod have been interviewed. The Russia results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.

1. Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul
© Copyright
This document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly
transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion
paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.
BRIC Branding® Survey – Russia Edition
The Perception of German Brands in Russia –
Strengths, Weaknesses and Opportunities
June 2012

2. 2
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

3. 3
Key findings – Germany’s image in Russia
Source: globeone
COUNTRY-OF-ORIGIN IMAGE OF VERY HIGH IMPORTANCE IN RUSSIA
90% of Russian consumers and B-to-B buyers consider the Country-of-Origin Image (COO-Image) to be of
central importance in the purchase decision process.
EXTREMELY POSITIVE ATTITUDE TOWARDS GERMAN BRANDS
An overwhelming majority of Russians (88%) show positive attitude towards German brands. This is the
highest figure compared to other BRIC countries that were surveyed.
GERMAN BRANDS LEADING IN ALMOST ALL DIMENSIONS
German brands lead the ranking in 12 out of 15 categories of values associated with their performance.
This perception is especially distinctive in such categories as excellent quality, high performance, good
reliability and trustworthiness.
SHORTCOMINGS IN SOPHISTICATION
German brands show some shortcomings in “sophistication” as they are not perceived as being very
fashionable or exciting, nor geared to local tastes. France and Japan outperform Germany in this category.
Japan also scores slightly higher than Germany in terms of “innovativeness & high-tech”.
SOME BARRIERS TO ENTER THE RUSSIAN MASS MARKET
Most German brands have a strong premium image and score high on the prestige scale. Therefore, many
brands are also perceived as being expensive. Limited affordability of German products because of relatively
low income level may pose barriers to German products gaining a significant share in the Russian market.
Germany’s image in Russia – Key findings (1/2)

4. 4
Key findings – Leading German brands in Russia
Source: globeone
GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIES
German brands are most famous for automobiles (94%), home appliances (86%) and pharmaceuticals (44%).
7 out of 12 brands that urban Russians remember spontaneously belong to the above-named sectors.
MERCEDES-BENZ, BMW AND AUDI ARE THE BEST KNOWN GERMAN BRANDS IN RUSSIA
An overwhelming majority of the Russian population is aware of numerous German brands. Brands of three
German car manufacturers – Mercedes-Benz, BMW, and Audi – take the leading position with 99% aided
awareness.
BMW IS THE BEST-LIKED GERMAN BRAND IN RUSSIA
German automotive brands – BMW (95%), Mercedes-Benz (94%), and Volkswagen (92%) – enjoy the highest
ranking on the positive attitude scale, followed by Audi (91%) and sportswear multinational Puma (91%).
NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN RUSSIA
The most frequently purchased/used German brand in Russia is Nivea (68%) followed by Adidas (62%) and
Braun (61%). Only 6 brands out of 45 represented in the survey enjoy 50% and over purchase/usage rate.
There is potential for German brands to secure a larger market share in the Russian market.
INTERNET IS THE MOST POPULAR INFORMATION SOURCE TO LEARN ABOUT FOREIGN BRANDS
The Internetserves as a leading source for Russian consumers to find information about German brands being
used by 29%. Other important sources include shopping centers (19%), TV (19%), and personal
recommendations by family or friends (17%).
Germany’s image in Russia – Key findings (2/2)

5. 5
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

6. 6
Global network with strong focus on fast growth markets
Mumbai Office
Cologne Head Office
São Paulo Office
Singapore Office
Beijing Office
Shanghai Office
globeone is a business consultancy with a strong representation in the world’s fast
growth markets
We offer specialized marketing strategy consulting & project management services to
help drive clients’ success in the world’s key growth regions
About globeone (1/2)
Seoul Office

7. 7
Marketing & communication strategy consulting to drive
clients’ success in BRIC
ExecutionStrategysupport
Consumer & strategic
market insights
1
Quantitative market
research design (e.g.
market potential,
segmentation)
Customer insight
generation & market trend
studies
Competitor analysis &
benchmarking
Qualitative market
research (e.g. online user
experience, focus groups)
2 Optimized positioning
& planning
Brand architecture &
brand portfolio strategies
Definition of goals and KPIs
& related strategy
development
Brand and product (re-)
positioning & value
proposition development
Business case & market
entry program
development
3 Support of 360°
fulfillment
Employer brand
development & program
implementation
Hands-on project
management & creation of
professional presentations
Creation of
360°integrated activity
planning
Creation of briefings &
steering of specialized
agencies (e.g. pitch
support)
4 Brand performance
& loyalty
Marketing spending
effectiveness (e.g.
correlation of investment
and sales)
Brand performance
analysis & controlling (e.g.
brand monitor surveys)
CRM audit & CRM strategy
development
Set-up of activities &
programs to enhance
brand loyalty
Global Strategy + Local Adjustment = Success in BRIC
– Typical globeone project examples for major global clients (selection) –
About globeone (2/2)

8. 8
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

9. 9
Countries/Cities:
Brazil Russia India China
São Paulo Moscow Mumbai Shanghai
Rio de Janeiro St. Petersburg New Delhi Beijing
Porto Alegre Novosibirsk Bangalore Guangzhou
Recife Yekaterinburg Chennai Chengdu
Brasília Nizhny Novgorod Pune Wuhan
Objectives:
• Identification of Country-of-origin Image (COO-Image) relevance in BRIC
• Assessment of perception of German brands amongst urban citizens
• Strengths & weaknesses of German brands and strategic implications
Method/Timing1:
• Stock exchange (DAX/MDAX) listed companies, other major German brands
• Computer-assisted telephone and face-to-face interviews: n ≈ 4,000
• Field work conducted: 2011
Over 4,000 interviews in 20 of the most important BRIC
cities to analyze the perception of German brands
Survey approach – Objectives and scope
Source: globeone
German brands
1) Representative survey based on research conducted by a certified market research agency in each country.

10. 10
Cities:
Objectives:
• Assessment of perception of German brands among Russian urban citizens
• Analysis of Russia-specific strengths, weaknesses and opportunities
• Guiding successful brand management in Russia
Method/Timing1:
• Inclusion of major German brands
• Computer-assisted telephone interviews: n = 1,000 for Russia
• Selection of cities to achieve a good representation of urban Russia
For the Russia edition, 1,000 interviews were conducted in
5 key Russian cities
Survey approach – Objectives and scope
Source: globeone
Yekaterinburg
NovosibirskMoscow
St. Petersburg
Nizhny Novgorod
1) Representative survey based on research conducted by a certified market research agency in Russia. The city sample was selected in order to achieve
a good representation in key Russian regions.
German brands

11. 11
COO – Definition
“Country-of-origin is defined as the country where corporate
headquarters of the company marketing the product or brand
are located. This does not require local manufacturing.” 2
“Consumers and customers associate positive or negative
attributes with a company, product or brand, if they know it
originates from a certain country.“ 3
“Country-of-origin effect is one of the most analyzed
phenomena in consumer behavior in international markets.“ 1
COO – High interest
eST
Survey approach – Country-of-origin definition
Country-of-origin (COO) as a key factor for purchase
decisions in Russia
Source: globeone
Sources: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International
Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.

12. 12
Survey approach – Country-of-origin in Russia
COO-Image – Important success factor in Russia
Urban consumers in the Russian market are particularly sensitive
related to the COO-Image resulting from
• Social mobility: Local consumers’ demand for prestigious
brands to highlight their social progress
• Novelty: Lower availability and higher novelty of foreign
brands also boost their image
• Limited trust: lower level of quality and marketing
competence of local brands in most emerging markets
Russia-specific relevance of a positive COO-Image
A positive COO-Image can:
• Increase perceived quality and prestige of a brand
• Promote consumers’ purchase intentions in favor of a brand
Potential for increasing brand performance depending on
respective industry and product category
General relevance of a positive COO-Image– Perception of a brand’s corresponding
country-of-origin –
!
Source: globeone

13. 13
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

14. 14
COO-Image important for purchase decision –
confirmed by 90% of Russian respondents
Germany’s image in Russia – Importance of COO-Image
Source: globeone
– Importance of COO-Image –
Sample size in Russia: 1,000. Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?
0% 0%
10%
29%
61%
0%
10%
20%
30%
40%
50%
60%
70%
Not at all important Not important Does not really matter Relatively important Very important

15. 15
COO-Image is most important for Russians
C
Germany’s image in Russia – Importance of COO-Image
Source: globeone
Not important
at all
Not important
Does not
really matter
Very important
Relatively
important
10%
20%
36%
29%
5%4%
31%
38%
19%
8%
1%
14%
47%
25%
13%
0%
0%
61%
29%
10%
Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China)
Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?

16. 16
• Overwhelming
majority have
positive attitude
towards German
brands
• Only a miniscule
fraction (1%) that
does not like
German brands
• Excellent
opportunities for
effective positioning
utilizing country-of-
origin potential
German image as an asset – 88% of the Russian urban
population confirm positive image of German brands
Q.: Do you like German brands, products or services?
– General attitude towards German brands in Russia –
Source: globeone
Sample size in Russia: 1,000
88% associate positive image
!
1% 0%
11%
43%
45%
0%
10%
20%
30%
40%
50%
I do not like
German brands
at all
I do not really
like German
brands
I do not have a
preference
I like German
brands
I like German
brands very
much
Germany’s image in Russia – General attitude towards German brands

17. 17
Best results for positive perception of German brands
in Russia compared to other BRIC countries
Germany’s image in Russia – General attitude towards German brands
Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China)Q.: Do you like German brands, products or services?
Source: globeone
42%
9%
38%
47%
5%
1%
22%
59%
13%
5%
1%
45%
43%
11%
0%
1%
16%
33%
7%
2%
I do not like
German
brands at all
I do not really
like German
brands
I do not have
a preference
I like German
brands
I like German
brands very
much

18. 18
German brands enjoy consistently high reputation
across all income classes
Germany’s image in Russia – Income-class-specific attitude towards German brands
Source: globeone
I do not like
German
brands at all
I do not really
like German
brands
I do not have
a preference
I like German
brands
I like German
brands very
much
– Liking of German brands across social classes (according to gross monthly income) –
– Middle class –
(€ 880-1,960; RUB 36,000-80,000)
– Upper middle class –
(> € 1,960; > RUB 80,000)
– Emerging middle class –
(€ 290-880; RUB 12,000-36,000)
1%
40%
14%
44%
84% associate
positive image
17%
17%
67%
84% associate
positive image
0%
1%
49%
5%
45%
94% associate
positive image
0% 0%
0%
Q.: Do you like German brands, products or services? Exchange rate: 1 € = RUB 40.83 (June 2012)

19. 19
German brands most strongly associated with quality,
reliability and performance
Germany’s image in Russia – Perception of brand and product attributes (1/2)
Source: globeone
– Perception of brand and product attributes based on respective country of origin –
Excellent quality
Good reliability
High durability
High performance
Outstanding design
High prestige
Sophisticated
0% 20% 40% 60% 80%
Germany
US
Japan
China
France
Russia
Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc.
Which countries are most strongly associated with these characteristics?

20. 20
German brands not seen as fashionable or exciting,
but they score high on trustworthiness and service
Germany’s image in Russia – Perception of brand and product attributes (2/2)
Source: globeone
– Perception of brand and product attributes based on respective country-of-origin –
Innovative & high-tech
Fashionable & exciting
Close to local customer needs
Good after-sales service
Good value for money
Trustworthy
Good corporate citizenship
Protecting environment & climate
0% 20% 40% 60% 80%
Germany
US
Japan
China
France
Russia
Sample size in Russia: 1,000. Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly
associated with these characteristics?

21. 21
German brands enjoy the best reputation in Russia
based on 15 performance indicators
Germany’s image in Russia – Country-of-origin image strength index
Source: globeone
– Country-of-origin image strength index –
(average scores of 15 relevant brand & product attribute dimensions)
10%
13%
30%
38%
52%
64%
0%
10%
20%
30%
40%
50%
60%
70%
Russia China France US Japan Germany
Sample size in Russia: 1,000

22. 22
• German brands are
mostly seen as
relatively and very
expensive reflecting
their focus on the
premium segment
• Large potential to
target emerging
middle class with
more locally
adjusted product
portfolio and
pricing strategies
– Price perception of German brands in Russia –
Source: globeone
1% 0%
26%
56%
17%
Very cheap Relatively
cheap
Very
expensive
Relatively
expensive
Similar to other
countries` brands
Germany’s image in Russia – Price perception
Q.: What do you think about German brands in terms of price? Sample size in Russia: 1,000
73% of interviewees in Russia consider German brands
to be relatively or very expensive

23. 23
• Such industries as
automotive and
home appliances
lead the ranking
• Eco-friendly
technologies are
not yet strongly
associated with
Germany
• German brands are
weakly associated
with services
Source: globeone
Germany’s image in Russia – Top industries with German association
Q.: What categories do you think German brands are famous for? Sample size in Russia: 1,000
– Industries/product categories most commonly associated with German brands –
3%
8%
9%
14%
15%
19%
21%
39%
44%
86%
94%
0% 20% 40% 60% 80% 100%
Services (insurance etc)
Detergents
Eco friendly technology
Football
Cosmetics / Perfume
Food
Clothing / Fashion
Machinery
Pharmaceuticals / Medicine
Home appliances
Automobile / Motorcycles
Urban Russians associate Germany mostly with cars,
home appliances, pharmaceuticals and machinery

24. 24
Overwhelming majority of the Russian respondents
showed high awareness of German brands
– Unaided awareness for German brands in India (top 11) –
Source: globeone
93% 7%
0%
20%
40%
60%
80%
100%
Can recall a
German brand
Can't recall a
German brand
6%
6%
7%
13%
13%
16%
29%
37%
39%
42%
57%
58%
0% 10% 20% 30% 40% 50% 60%
Hugo Boss
Puma
Metro Cash & Carry
Nivea
Braun
Adidas
Bosch
Audi
Siemens
BMW
Volkswagen
Mercedes-Benz
– Unaided awareness for German brands in Russia (top 12) –
Germany’s image in Russia – Unaided awareness
Q.: Which German brands do you know ? Please name as many as come to your mind spontaneously. Sample size in Russia: 1,000

25. 25
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

26. 26
• German car
manufacturers lead
the top 12 ranking
• Mercedes-Benz,
BMW, and Audi
(99%) are the best-
known German
brands
• Siemens (95%) is
the only non-
automotive brand
on the top 5 list
• Metro Cash & Carry
(74%) is the only
B-to-B brand on
the top 12 list
Source: globeone
Leading German brands – Aided awareness (1/2)
Q.: I will read you a list of German brands. Which brands do you know?
Top 12 – Car manufacturers are at the top of the best-
known German brands ranking with 99% awareness
(987)
(994)
(993)
(970)
(964)
(960)
(916)
(880)
(744)
(743)
(799)
(717)
0% 20% 40% 60% 80% 100%
Mercedes-Benz
BMW
Audi
Volkswagen
Siemens
Bosch
Braun
Nivea
Adidas
Metro Cash & Carry
Puma
Hugo Boss
99%
99%
99%
97%
96%
96%
92%
88%
80%
74%
74%
72%
– Aided brand awareness in Russia (top 12) –
Sample size in Russia: 1,000

27. 27
• Deutsche Bank
(71%) is the leading
financial services
brand
• Auto parts
manufacturer
Continental shows
high awareness of
63%
• MINI (48%) has a
significantly lower
awareness
compared to other
leading car brands
• Industry leader
Thyssen Krupp
holds the 30th
place
Source: globeone
Leading German brands – Aided awareness (2/2)
Q.: I will read you a list of German brands. Which brands do you know?
Rank 13 - 30 – Service and car companies enjoy higher
awareness than consumer goods
– Aided brand awareness in Russia (rank 13 to 30) –
(714)
(707)
(706)
(700)
(680)
(642)
(636)
(629)
(593)
(581)
(575)
(554)
(543)
(512)
(478)
(442)
(423)
(422)
0% 20% 40% 60% 80% 100%
71%Deutsche Bank
Thyssen Krupp
Becks
Boehringer-Ingelheim
MINI
Carl Zeiss
MAN
Miele
AEG
DHL
Deutsche Telekom
Continental
Skoda
Porsche
Bayer
Grundig
Lufthansa 71%
71%
70%
68%
64%
63%
59%
58%
58%
55%
54%
51%
48%
44%
42%
42%
64%Henkel
Sample size in Russia: 1,000

28. 28
• BMW (95%),
Mercedes-Benz
(94%) and
Volkswagen (92%)
hit the top 3 list
• Hugo Boss (91%) is
the only fashion
clothing brand
among the top 12
• Nivea (86%) is the
only skin- and body
care brand on the
top 12 list
• METRO extremely
well perceived in
Russia with its Cash
& Carry wholesale
formats
Source: globeone
Leading German brands – Positive image (1/2)
Q.: Do you like this brand in general?
Top 12 – Automotive industry tops the ranking – BMW,
Mercedes-Benz and Volkswagen as best liked brands
– Positive attitude towards German brands in Russia (top 12)¹ –
(943)
(938)
(891)
(896)
(674)
(649)
(669)
(696)
(829)
(758)
(585)
(805)
0% 20% 40% 60% 80% 100%
BMW
Mercedes-Benz
Volkswagen
Audi
Puma
Hugo Boss
Metro Cash & Carry
Adidas
Bosch
Nivea
Porsche
95%
94%
92%
91%
91%
91%
90%
87%
86%
86%
86%
84%Siemens
1 Based on number of interviewees who know the brand

29. 29
• Bayer (83%)
demonstrates the
highest score on
the positive image
scale in the
pharmaceuticals
industry
• DHL (77%) is in the
upper third part of
the ranking
• DAX 30 listed SAP
(69%) ranks last in
the top 30 ranking
Source: globeone
Leading German brands – Positive image (2/2)
Q.: Do you like this brand in general?
Rank 13 - 30 – Bayer as best liked German
pharmaceuticals brand
– Positive attitude towards German brands in Russia (rank 13 to 30)¹ –
(760)
(580)
(525)
(315)
(523)
(323)
(450)
(285)
(235)
(412)
(392)
(368)
(320)
(447)
(391)
(236)
(289)
(181)
0% 20% 40% 60% 80% 100%
Bayer 83%
Henkel 83%
Osram 82%
Skoda 81%
Dr. Oetker 80%
DHL 77%
Haribo 75%
BASF 75%
AEG 72%
MAN 72%
Carl Zeiss 72%
Boehringer-Ingelheim 72%
Continental 71%
Miele 71%
Paulaner 69%
SAP 69%
Leica 70%
Braun 83%
1 Based on number of interviewees who know the brand

30. 30
• Deutsche Bank and
Deutsche Telekom
lead ranking due to
adjective ‘Deutsche’
in the brand name
• 4 leading car brands
are among top 7
• Bosch and Siemens,
world’s largest
electronics and
engineering
companies, are also
on the top 12 list
• Volkswagen using
its “Das Auto”
slogan scores 96%
Source: globeone
Leading German brands – Recognition of German brand origin (1/2)
Q.: Do you think this brand is originally from Germany or not?
Top 12 – German brands showing high recognition of
“German origin” with major car manufacturers in top 7
– Recognition of German brand origin in Russia (top 12)¹ –
(709)
(589)
(966)
(964)
(960)
(683)
(934)
(194)
(889)
(153)
(883)
(389)
99%
99%
97%
97%
97%
96%
97%
95%
93%
93%
92%
92%
Deutsche Bank
0% 20% 40% 60% 80% 100%
Deutsche Telekom
Mercedes-Benz
BMW
Audi
Lufthansa
Volkswagen
Zwilling
Bosch
Hansgrohe
Siemens
Thyssen Krupp
1 Based on number of interviewees who know the brand

31. 31
• German-sounding
brands like Carl
Zeiss and Henkel
have a high
recognition rate
• Competitors Becks
(83%) and Paulaner
(82%) enjoy high
recognition scores
• LANXESS specialty
chemicals group
also demonstrates a
high recognition
rate of 84% despite
its non-German-
sounding name
Source: globeone
Leading German brands – Recognition of German brand origin (2/2)
Q.: Do you think this brand is originally from Germany or not?
Rank 13 - 30 – German-sounding brands scoring high on
the origin recognition scale
– Recognition of German brand origin in Russia (rank 13 to 30)¹ –
(462)
(625)
(483)
(802)
(274)
(695)
(72)
(618)
(549)
(380)
(627)
(486)
(112)
(350)
(340)
(712)
(141)
(502)
90%
89%
89%
88%
88%
87%
87%
86%
86%
86%
84%
84%
84%
83%
82%
81%
81%
80%
Carl Zeiss
0% 20% 40% 60% 80% 100%
Bayer
MAN
Braun
BASF
Adidas
Bertelsmann
Hugo Boss
Henkel
Boehringer Ingelheim
Puma
DHL
LANXESS
Becks
Paulaner
Linde
Continental
Nivea
1 Based on number of interviewees who know the brand

32. 32
• Top 12 mainly
consists of B-to-C
brands led by Nivea
(56%) and Adidas
(62%)
• Adidas bought/
used by 62% of the
interviewees
outperforms its
main competitor
Puma (47%)
• Metro Cash & Carry
enjoys a healthy
50% purchase rate
among urban
citizens
Source: globeone
Leading German brands – Purchase/usage (1/2)
Q.: Which German brands have you bought or which services have you used?
Top 12 – Leading brands with high purchase/usage rate
with Nivea at the top of the ranking
– Purchase/usage of German brands in Russia (top 12) –
(676)
(619)
(605)
(542)
(529)
(503)
(471)
(466)
(404)
(336)
(282)
(266)
68%
62%
61%
54%
53%
47%
50%
Nivea
0% 20% 40% 60% 80% 100%
Adidas
Braun
Siemens
Bosch
Metro Cash & Carry
Puma
Hugo Boss
Henkel
Dr. Oetker
Becks
40%
34%
28%
27%
Bayer 47%
Sample size in Russia: 1,000

33. 33
• Volkswagen (16%)
scores highest
among the German
automobile
producers on the
purchase rate
• Lufthansa, German
flagship carrier and
one of the leading
airlines in Europe,
with currently 10%
usage rate
Source: globeone
Leading German brands – Purchase/usage (2/2)
Q.: Which German brands have you bought or which services have you used?
Rank 13 - 30 – Many well-known German brands with
significantly low market penetration level
– Purchase/usage of German brands in Russia (rank 13 to 30) –
Sample size in Russia: 1,000
25%
25%
25%
24%
24%
24%
19%
19%
18%
17%
16%
16%
14%
14%
13%
Osram
Continental
Paulaner
Boehringer-Ingelheim
Grundig
Haribo
Lufthansa
Carl Zeiss
BASF
Miele
DHL
Volkswagen
Audi
Zwilling
AEG
Hansgrohe
Mercedes-Benz
(251)
(247)
(247)
(240)
(235)
(235)
(191)
(189)
(181)
(173)
(158)
(155)
(143)
(139)
(126)
(87)
(82)
SAP (89)
0% 20% 40% 60% 80% 100%
9%
9%
8%

34. 34
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

35. 35
Internet as the most popular information source to learn
about foreign brands
Insights into information channels – Key sources (1/2)
0% 10% 20% 30%
Shopping center / Store
Internet1
TV
Family / Friends
Events / Tradeshows
Radio
29%
19%
17%
7%
5%
5%
19%
Newspapers / Magazines
– Information sources to find out/ learn more about foreign brands in Russia–
Source: globeone
Sample size in Russia: 1,000. 1 Category Internet includes Internet search engines, social media and corporate website research.
Q.: How do you generally find out/learn more about foreign brands?

36. 36
Within digital communication, internet search engines
and corporate websites are most relevant
Insights into information channels – Key sources (2/2)
– Information sources to find out/ learn more about foreign brands in Russia–
0% 10% 20% 30%
Internet search engines
TV
Shopping center / Store
Family / Friends
Events / Tradeshows
Radio
Social media
19%
5%
5%
5%
19%
Newspapers / Magazines
Corporate website
21%
17%
3%
7%
Q.: How do you generally find out/learn more about foreign brands? Sample size in Russia: 1,000
Source: globeone

37. 37
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

38. 38
Strategies for Russia – Leveraging maximum brand potential to grow sales (1/3)
Success in Russia requires dedicated action and a clear
strategic roadmap (→ ‘one world strategy’1)
Strategic implications for corporations:
1:1 transfer of ‘developed market’ strategies is rarely
successful
Almost continental complexity of Russia as key challenge for
annual strategy development and alignment of local
organizations
Fact-based adjustments regarding strategic focus, relevant
target groups and brand strategy necessary
Different levels of brand performance require a differentiated
approach
1 A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/customer needs in BRIC at the very center of corporate strategy.
- Brand performance analysis -
Improving business performance in Russia through
effective communication strategies
Source: globeone

39. 39
Strategies for Russia – Leveraging maximum brand potential to grow sales (2/3)
Corporation with
low brand
awareness and
thus low general
brand
performance
across all major
dimensions in
Russia
- Key challenges -
• Lack of fact-based ‘one-world-strategy’ for Russia
• Inability to bridge gap between HQ and country
marketing / COM teams
• Unclear definition of market-driven strategy and
local target groups and needs
• Ineffective activation strategy & media investment
to communicate above ‘perception threshold’
• Ineffective utilization of media vehicles /
insufficient media investment
25%
50%
75%
100%
0%
Corporation
with high
awareness but
weak image as
compared to
Industry
benchmarks in
Russia
25%
50%
75%
100%
0%
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty
- Key challenges -
• Under-utilization of local customer insights and
thus no ‘quick wins’
• Absence of a relevant positioning adjusted to local
target group expectation (esp. prestige appeal)
• Shortcomings in locally relevant storytelling
• Low differentiation from key competitors/ local
hero brands in Russia
• Lack of effective creative execution and media
strategy
- Brand performance in Russia -
Awareness challenge1
- Brand performance in Russia -
Image challenge2
Selected strategies for Russia – Awareness & image
challenges
Source: globeone

40. 40
German roots of
the brand(s) not
properly
recognized in
Russian target
groups
- Key challenges -
• Missing link to German origin of a brand
• Advertising, PR, event or online activities lacking
proactive communication of German brand
heritage and thus no realization of image transfer
and additional price premium potential
• Lack of story telling related to brand origin &
history though one of few competitive advantages
that cannot be easily imitated
• No successful use of ‘educational approach’
Brand enjoys
good reputation
but purchase
behavior and
loyalty remain
below Industry
benchmarks in
Russia
- Key challenges -
• Lack of strategy addressing middle income groups
as well (e.g. brand-stretching in order to appeal to
more price sensitive target customers)
• Limited number of local distribution points
• Lack of implementing sequential expansion
strategies in line with regional development
• Under-utilization of global CRM basics and related
systems in the local market
• Lack of effective activation at POS & in social media
German origin challenge3
Activation & loyalty challenge4
25%
50%
75%
100%
0%
25%
50%
75%
100%
0%
Strategies for Russia – Leveraging maximum brand potential to grow sales (3/3)
Selected strategies for Russia – German origin &
activation challenge
Source: globeone
- Brand performance in Russia -
- Brand performance in Russia -
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty

41. 41
• About globeone
• Survey Approach
• Germany’s Image in Russia
• Leading German Brands in Russia
• Insights into Information Channels in Russia
• Marketing and Communication Strategies for Russia
• Contact
Agenda.

42. 42
Global offices.
globeone
Cologne Head Office
Kranhaus Süd
Im Zollhafen 24
50678 Köln
Germany
Shanghai Office
16F Feidiao Internat. Bldg.
1065 Zhao Jia Bang Road
200030 Shanghai
People's Republic of China
Mumbai Office
B 806, Sagar Tech Plaza
Sakinaka Junction
Andheri Kurla Link Road
Andheri (East)
Mumbai 400072
India
São Paulo Office Singapore OfficeBeijing Office
Office 39, Room 509A
No. 4 Gong Ti Bei Lu
Chaoyang District
100027 Beijing
P.R. China
Av. Cidade Jardim, 400
20th floor – room 08
01454-000 São Paulo
Brazil
10 Collyer Quay, 40-53
Ocean Financial Centre
Singapore 049135
Singapore
Email:
mumbai@globe-one.com
Phone +91(0)2267703718
(ext. 11)
Fax+91(0)2266459842
Email:
saopaulo@globe-one.com
Phone +55(0)1138180837
Fax+55(0)1138180899
Email:
singapore@globe-one.com
Phone +6568086050
Fax+6566225999
Email:
beijing@globe-one.com
Phone +86(0)1065935451
Phone +8613501298737
Fax+86(0)1065935463
Email:
shanghai@globe-one.com
Phone +86(0)2151581688
(ext. 1352)
Fax+86(0)2151581686
Email:
cologne@globe-one.com
Phone +49(0)221788068-0
Fax+49 (0)221788068-29
www.globe-one.com
Seoul Office
5F Seoul Design Works
B/D, 683-133
Hannam-dong,
Yongsna-gu,
Seoul, Korea, 140-892
Email:
seoul@globe-one.com
Phone +6568086050
Fax+6566225999

43. Thank you!
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