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Vodka’s Market and ways of its promotion


Vodka is a traditional alcoholic beverage around Russia and all post-Soviet space. This kind of strong liquor is not renting its leading positions. Vodka is common and understandable to everybody; it inspires more trust to the older generation and is a permanent part of popular cocktails. It would seem what can happen with vodka? It is impossible to invent more stable product for the domestic market.

However, the magazine “Food promotion. Prod & Prod” has published an interesting article “The Decoration of the table”, devoted to advertising and marketing solutions of vodka promotion, in its fresh January issue. As reported in the article, the producers of the popular firewater remained without proper financing in the post-crisis period. Today, vodka’s producers are obliged to pay 50% excise tax on turnover in 30 days after shipment of goods, and indulgency to debtors is granted for a term of two to four months. As a result, the financial cycle is 120 days.

The interesting facts are compiled in the article “The Decoration of the table”. The lowest price for the floor-liter bottle of vodka is 89.9 rubles since January 2010. The activities of the regulator were aimed to improve product’s quality, but the net result is displacement of price segments.

It is noteworthy that vodka’s market has the highest rates of counterfeit goods and the shadow segment, which makes 40% of sales. The magazine staff notes that the largest segment of vodka’s market – is mass-market, its market share is growing constantly. Therefore, the manufacturers try to take stable position in this market. There is a segment of “economy” also, which represents a faceless product, without any brand’s point. The consumers of this segment, according to the latest regulations, have lost the opportunity to buy vodka below the minimum. It is predicted that the buyers of the “economy” segment will go to the mass-market eventually.
Vodka can not be called a seasonal product, the article says. We can say that its consumption is throughout the year evenly. The jump of sales is only for the New Year’s holidays.

At the November exhibition “Drinks’ Industry 2010” a few forums were held. In the course of discussions and deliberations was noted that more creative ideas are needed for the effective development of this market segment. Although vodka is the national drink practically, this product needs promotion and right marketing strategy still. As the article says, vodka needs rebranding. It is necessarily to create a new, strong image. In addition, it is worth to change the target audience. In the inner space of our fellows vodka is a male drink. The studies have shown that 45% of women drink vodka rarely, but are the buyers in the store in 35% of cases.

As you can see, all the familiar strong drink shakes on its pins. The magazine “Food Promotion. Prod & Prod” in its article “The Decoration of the table” as always able to estimate the old problem with fresh perspective. Read more about the development and promotion of such products as vodka in the domestic market in the January issue.