Le Petit Paris

Highlights
Luxury sectors in Russia
gastronomy and alcohols
jewelry and clock industry
automobiles, boats and planes
fashion and accessories
hotels and decorations
Russian Perception of quality :
Based on scarcity and exclusiveness
Prestigious shops : high class products
Brand
Price
www.comitecolbert.com/Etude : La perception du luxe en Russie

Russian perception of french gastronomy:
essential component of french culture : good food and good wine
Idea of an expensive meal : french cuisine
www.comitecolbert.com/Etude : La perception du luxe en Russie

S W O T Analysis
Opportunities
High demand for french luxury products
2010 : French-Russian year
Increasing purchasing power & rich population
One of the most attractive wine markets in the world
Rapid devlopment
Strenghs
Inovative concept with luxury products
High quality products
Best suppliers and employees
Alliance with a local partner
Weaknesess
Company unknown
Lack of experience
Limited capital
No reputation established
Language barrier
Threats
Restrictions on transborder data flows
Protective country
New entrants
Luxurious sector guided by reputation

The alternative market entry strategy

Strategic alliance
We will set up an alliance with a Russian company in order to shore up our weaknesses and increase competitive strengths.
This partner will have 33% shares in our company.

The different partners possible
Luxadvor
Novikov Restaurant Group

Luxadvor
Luxadvor is a holding of the Russian group OPK belonging to Sergueï Pougatchev
Luxadvor is a subsidiary specialised in lux products
Luxadvor acquired the group « Hediard » in 2007
Sergueï Pougatchev is a major political actor and banker in Russia
http://www.francesoir.fr/economie/2007/10/13/hediard-restera-une-marque-francaise.html
http://eng.opk.ru/

Novikov Restaurant Group
Line of business : Luxury Restaurants
Arkady Novikov is a major actor in the food industry in Russia
He has good media contacts and could help us in communication
Arkady Novikov has capital to invest, he spent 3 million euroswhen opening the « Hediard » grocery in Moscow
http://eng.novikovgroup.ru/group/group/
http://www.eligne.com/60-moscow-luxe-consommation-russe.html

TARGET GROUP
Main target:
Wealthy Russian people => 6% of Russian population , 88000 Millionaires
Target age group: 38 – 62 years (Citizens from the big cities)
Increasing buying power: 20 to 40 % per year by sector =>big potential for our products
Secondary target:
Diplomats
Foreigners
Tourists
Sources:
FORBES
www.eligne.com

The capacity to build brand equity
Source: The Chartered Institute of Marketing, 2003

MARKETING MIX
Product
Place
Promotion
Price

PACKAGING COMPONENT
Trademark :
Brandname : «Le Petit Paris »
Price : High priced products
Quantity : Alcohol content & weight
hazards of transport
* Drops and impacts
* Compression forces
* Vibration
* Climatic variations
Colours : Pink, Black, Violet, Wine, Gold….
Respect environmental concerns

Product Adaptation
All products are required to have labeling and relevant information in the Russian language
Wine :
Product’s name
Manufacturer’s name, trademark and location
Food additives
Storage conditions
Expiry date
Health hazards (children, teenagers, pregnant women..)

Packaging
Product information must be placed directly on the package in a convenient location.

PRODUCTS
The celler

Savory delicatessen :

Sweet Delicatessen:

Chocolates

Macaroons :

Confectionary

Cheese

Bakery :

Other items

SERVICES
GIFT IDEAS
CATERING SEVICES :

PLACE
Manufacturer
Grocery
Retailer (Le Petit Paris)
E-commerce
Customer

Manufacturers
Wine: french manufacturers
Champagne : Viot &Fils
Confisserie & gifts ideas : The Laduree Paris
Foie Gras : Georges THIOL, Mayenne
Cheese: french manufaturers
www.champagne-viot.com
www.laduree.fr

Lux Grocery
Surface :120 m², sophisticated design: wine, black & gold
attractive display of products on the shelfs
3-4 tables for monthly Sunday Breakfast
Bakery
Opening hours
Monday-Friday 10 a.m. -19 p.m.
Saturday 9 a.m.-17 p.m.
Sunday 9 a.m. – 12 a.m.

- Street « Arbat »
Pedestrian main street, meeting point of the
tourists and rich consumers.
The best place to be in Moscow

E-Commerce : Internet Shop
Facilitating relationship building
maintenance in new ways
Relatively low set-up cost
Gives flexibility in developing our delicatessen
Internet has the world’s second growth rate in Russia
www.petitparis.ru
Source: www.eligne.com/43-internet-russe-croissance-mondiale.html

LEPETITPARIS.RU
Мренда

LOGISTICS
Pick up point in Russia
In charge of transport from France to Russia,
Storage place in Russia
In charge of supplying

COMMUNICATION
Objective :
Brand awareness and brand image
Message :
Combining luxury, elegance and modernity

Advertising
- Media : Newspapers, magazines, radio, our website (www.lepetitparis.ru)and other websites, billboards, TV ...
We intend to inform and persuade .
- two basic aspects of advertising :
The message (what we wantto convey)
The medium (how we get our message across)

Sales Promotion (Push strategy)
Opening ceremony with renowned people
Our originality :
Master-class : Training day our french technical know-how
Wine tasting session and other products. (4 times a year)
Monthly Sunday morning french breakfast
(about 15-20€).

Objective
To familiarise customers (especially Russians)
with french products.
« eg: The consumption of wine.
In general non french consumers ignore the way wine is served : which temperature, in which glass ….
Source : www.eligne.com

Sponsorship :
-Olympic winter game in 2014
To be a sponsor of the JO.
Action : to implant one shop in Sochi around 2012

PRICE

Overall price strategy
Skimming pricing
Objective : reach the segment of the Russian market that is relatively price insensitive
Wealthy Russians are willing to pay a premium price for the value received
This price strategy will be efficient because in Russia there are only two income levels (rich and poor)

Justification of the skimming pricing strategy
Functional benefits
The high price is an indication of good quality
Psychological benefits
They believe it is a sign of self worth - "They are worth it" - It authenticates their success and status - It proves to others that they are a member of an exclusive group;
Social benefits
They will show to others that they have a high social class

How to set up the price

The cost plus pricing of our champagne
Manufacturer price net: 30€
Costs :
Freight and transit cost : 15%
Custom duties : 20%
Other fees : 10%
Total cost : 13.5€
Margin : 30 % / 13.5€ / 542 Roubles
Selling price :57€ / 2,289.70 Roubles
http://www.russian-customs-tariff.com
http://www.customs.ru/en

Pressures on price and tax problem
Pressures on price:
The exchange rate fluctuation between EU and Russia is quit important
Currently the exhange rate is : 1€= 43,29 RUB
Inflation is quite high in Russia, in 2009 the rate was 16%
Tax problem:
We will make all the benefits in Russia, as our company is incorporated in France we will have to pay tax on our dividend flow.
http://www.ccopera.com/

MANAGEMENT ORGANIZATION