Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market

Launched in 1998, Russian Standard vodka quickly became the highest selling premium vodka in Russia, ahead of Stoli, Smirnoff, and Absolut. Russian Standard’s success can be attributed to the high quality of the vodka itself, its innovative and distinctive bottle, to its strong presence in bars, and to a brand identity that is proud to leverage its Russian heritage while promising world-class standards of quality. The company, which also owns a successful bank, Russian Standard bank, is considering whether it should launch Russian Standard in the biggest premium vodka market in the world - the US - and whether it should adapt its marketing mix or stick with the strategy that has been so successful in Russia.

Develop an understanding of the decision criteria to develop an international expansion strategy (global branding vs. local adaptation). Discuss the value of horizontal brand extensions across widely different product categories (e.g., banking and vodka). Expose students to the range of marketing issues related to the management of brands in the alcoholic beverage industry.