Gorbacheva, V.

Karpova, A.

Sopilko, N.

English

eLibrary National Mining University

43- expanding of support staff and offering a separate subsection for the technicalsupport of this particularly product (internet-banking) and systematic advancedtraining for support staff.Gorbacheva V. ,Karpova A.Sopilko N., research supervisorPeoples’ Friendship University of RussiaMARKETING METHODS OF COMPETITIVE STRUGGLE IN THERUSSIAN RETAIL INDUSTRYKey words: competition, competitor analysis, competition, retail industryOver the last decade, a huge number of new companies which sale foodstuffsappeared in the industry of the Russian retail trade. Meanwhile, it’s necessary todevelop new ways to promote the products because in the fierce competition in theindustry it’s very difficult to keep the leading position. Features of large companiesare: scale, a huge range of products, highly developed advertising, etc. It gives a lotof advantages to the customer and at the same time, increases competition amongcompanies.According to the rating agency "Expert RA" [1], in the ranking of the largestcompanies of Russia in terms of volume of implementation, the leading retail chainsare: "Magnit" - retail chain, X5 Retail Group, “Auchan”, "Dixy Group", "Metro Cash& Carry ", “Lenta”, “О’КЕY Group”. To improve the competitiveness companies areusing various ways of stimulating product sales. In practice methods of price andnon-price competition are used. [2]. It is believed that the most effective methods arethe methods of price competition, but if such methods are preferred by customers, it’snot the best method for the companies.On the part of the price competition, recently method of price reduction as so-called " promotional actions" for various goods is successfully used, as well asspecial offers such as "1+1" and the receipt of discounts by accumulating points onthe "loyalty card". Currently the methods of encouraging of regular customers in theform of cards which can provide a permanent discount are very popular and in thiscase the price tag indicates the "special price". Such cards are widely used by thestores “Lenta” and “О’КЕY”.On the part of non-price competition much more similar methods exist.Moreover, marketers are constantly developing new methods to increase sales and arealso improving the existing ones, as they are the most profitable for the company.Among the most popular methods we can distinguish such as "gift with purchase",shares "happy day", when on certain days shops carry out various promotionalactions, make competitions with various prizes that are meant to attract the largestnumber of customers. According to experts, the most effective method is anadvertising of goods, because when customer comes to the store he chooses a productwhich he has heard about or saw somewhere already. [3]. Retailers now activelydevelop mobile apps where customer can learn about current promotions. The most44common methods are window dressing and display of goods that must be sold on theshelf "at eye level". This method is used by all of the previously mentioned leadingcompanies.All these methods have positive and negative aspects, both for costumers, andfor the main retail chains. Let’s select them in the matrix (Fig.1)The negative aspects for the customer Positive aspects for the customer1) During the discounts and promotional actions whichare organised by the shops the prices are not alwaysreally lower than they were before.2) Sometimes shops put discounts to the goods withalmost ended shelf life. So the customer should alwayscheck it, especially if he doesn’t plan to use the productat once.3) Shops can artificially raise prices for additionalgoods which are sold with the stuff on sale.4) Location of goods in the stores is organized in such away to make customer go all over the store to find the“right” stuff.5) Also there is a possibility to take "unnecessary" stuffunder the influence of advertising or attractive, but lessvaluable "gift for your purchase."1) The opportunity to buy goodswith a big discount.2) The opportunity to obtain thedesired stuff as a gift.3) The opportunity to learn moreabout the favourite stuff.The negative aspects for the company Positive aspects for the company1) During the price competition part of the profit maybe lost2) Sometimes it requires additional costs to organiseraffles or contests3) If during various degustations and delivery of giftsfor purchase customer doesn’t like the gift, he willprobably never buy it again. So those gifts won’t be asvaluable as they were before4) During various promotional actions the volume ofsales may decrease because of the accumulated stock ofthe product from the customer5) It is necessary to plan the type and period ofpromotional actions in advance, considering of theinterests of the customer1) Manufacturers can organizepromotional actions with the purposeof advertising of a new product,while the retail chain does not loseprofit2) Increase the attractiveness ofstores3) The ability to sell products withalmost ended shelf life withoutincurring lossesFig. 1 Matrix of positive and negative sidesHaving considered all the ways of promotional sales it’s necessary to point outthat this method is now very popular. It’s very important for both the consumers andthe retailers. To retain the leading positions, companies should attract customers indifferent ways. For this reason these methods are developed and improved, as theycan be used to study consumer preferences, other goods, as well as the dependence ofthe necessary shares on the season, day of the week. It is impossible to identify aspecific, universal method of influence on buying choices. Price competition isclosely linked to non-price competition, for example promotional actions organizedby shops (price competition) are mostly known due to advertisement (non-pricecompetition). Consumers and retail chains represent a tandem where they come to the45optimal conditions of cooperation by studying each other.References:1. http://raexpert.ru/rankingtable/bank/frb_2015/main/2. Sinyaeva, I.M. Marketing: teoriya i praktika: ucheb. dlya stud. vuzov, obuch.po ehkon. spec. / I.M.Sinyaeva, O.N.Romanenkova. - M.: YUrajt, 2014. - 652 s3. Kotler, F. Osnovy marketinga: kratkij kurs: Filip Kotler. - Moskva [i dr.]:Vil'yams, 2012. - 488 s.Gorbenko D.Gerashchenko S., research supervisorNational Mining UniversityFDI IN UKRAINE: STATUS AND CURRENT TRENDSKey words: foreign direct investment (FDI), investment hunger, economicdevelopment, investment crisis, investment climate.In modern terms the growth in foreign direct investment (FDI) leads typically tothe increase in economic and social development of almost all countries. In mostcases, countries that are leaders in the inflow of foreign direct investments, have highrates of economic growth as well. As an example, we can consider the economy ofChina with the increasing direct investment in the 90s. The 20th century was thecatalyst for economic development. Consequently there is an objective requirement tointensify investment in Ukraine to create a competitive economic system, tomodernize and reconstruct the existing enterprises, providing innovation-orientedstructural changes in the economy.Foreign direct investment (FDI) is a capital investment due to long-termeconomic interest, which provide the investor to control the investee in order toobtain the income. According to the UN SNA, FDI are: company’s primaryinvestment, equity capital overseas, reinvestment, and internal corporate transfers.Under the current economic conditions, FDI has reached a very large volumes.In terms of Ukraine, foreign direct investment is the most profitable one since itis of a great demand for developing countries. The reasons in he fact that it allowsimlementing large and important projects; in addition new technologies (e.g. creationof production), new corporate governance practices etc. come to the country. Foreigndirect investment in Ukraine would be able to reduce significantly “investmenthunger” if their scale can be compared with foreign investments in other CentralEuropean countries, which have embarked on economic reforms almostsimultaneously with Ukraine. However, in Ukraine this source of financing economicdevelopment is inadequate. We believe that foreign direct investment is one of theopportunities for Ukraine to alleviate the situation of the investment crisis.

MARKETING METHODS OF COMPETITIVE STRUGGLE IN THE RUSSIAN RETAIL INDUSTRY

http://ir.nmu.org.ua//bitstream/123456789/149305/1/GorbachevaVKarpovaA.pdf

MARKETING METHODS OF COMPETITIVE STRUGGLE IN THE RUSSIAN RETAIL INDUSTRY

Abstract

Similar works

Full text

Available Versions

eLibrary National Mining University