This action might not be possible to undo. Are you sure you want to continue?
Tata not only in one sector but in seven sectors: consumer products, engineering, communications and information technology, materials, services, energy, and chemicals. Russia has many preferable condition which favors tea. Around 95 per cent of population drink tea and Russia’s annual tea consumption is 1 kg. The climatic conditions are also in our favor as most of the time Russia’s climate is cold and people drinks tea to keep them hot. History also favors the growth in consumptions of tea. History shows that Russian drink tea post lunch and even at afternoon breaks. Families in Russia are usually lives as joint family. On an average there are six members in a family. This again favors our product as people usually prefer to drink in groups. Education in Russia is of high standard and they have always maintained it. According to census 2002 literacy rate in Russia is 99.4 per cent. The education level among people will make it easier for us to communicate our products through marketing. Tax system in Russia has been amended in 2001 and it made it more libral for business to start. All companies has to give 24 per cent tax to the government which is equal to all business. Legal system is also fair in Russia and there is a separate court that is courts of arbitration which looks only the disputes between of business entities. Language can create problem for us. Russian is an official language in Russia and 81 per cent of population speks Russia. This will make it more difficult to communicate. But this can also be taken as positive if we master the language as we can cover 90 per cent of populations at one go. Though there are some problem but overall the consumption of tea is high.
Company profile We are exporting “Tata Tetley tea” the product of Tata. Tata Companies not only operate in tea but also in seven business sectors: consumer products, engineering, communications and information technology, materials, services, energy, and chemicals. Tata tea is second largest branded tea company in the world, second in India, and works along with UK-based subsidiary Tetley. Tetley began its operation in 1837 by two brothers Joseph and Edward Tetley. We are going to export in Russia, the reasons for are: 1. Russia’s annual per capita tea consumption is 1 kg and around 95 per cent of the population drinks tea. 2. The tea is usually preferred in winter months as it keeps the body hot. 3. According the survey the average Russian drinks 3 cups of hot beverages daily and half of them drink two cups. 4. Consumers usually prefer three brands (86 per cent) and around 70 per cent buyers go for persistent loyalty to the brand. () 5. The reasons for switching to another brand are change or worsen flavor or ability to buy a more expensive product. These factors will help us to launching our product
History of Russian tea market: Tea is admired in many countries and every country has its own set of customs and traditions associated with it. If we look upon the history of tea market in Russia, it started back 1600’s when Mongolians first introduce tea in Russia in the form of gift given by” Altyun khan” a Mongolian ruler to” Tsar Michael Fedorovich “a Russian king in 1638. Before that no one knew about tea but soon after that it is being followed as a tea ceremony and become official drink of the nation. Initially tea was used to come from china and took 16 months to reach at Russia. Before the death of “Catherine the great” in 1796 tea was consider as premium and expensive product and general masses can’t afford to have it but after the death trend was changed and prices of tea dropped out and become affordable. But the real cause which makes tea so affordable that it can reach to all masses was their railway transportation system which they invent in the name of Trans Siberian railway in 1913. Usually tea in Russia is being served as post lunch and even at afternoon breaks which is very similar of other nation’s five o’clock tea but the difference is that Russian tea can be consumed anywhere and any place and any time of the day. So all this mentioned facts justify that how closely tea is associated with their history and an important part of their day to day life.
Geert Hofstede model: It shows
Power distance index (PDI) tells about Low and High Power Distance Individualism (IDV) tells about Individualism and collectivism Masculinity (MAS) tells about Masculinity and femininity Uncertainty avoid index (UAI) tells about risk taking ability Long term orientation (LTO) tells about Long and short term orientation (Geert Hofstede™ Cultural Dimensions, n.d)
Geographical overview of Russia Location:
Russia is located in northern Asia and northeastern Europe. It is the largest country in the world which his slightly less than 1.8 times the size of the United States, with a total area of 17,075,200 sq km (6,592,771 sq mi). Russia is one of the largest independent countries among twenty one republicans in the world. It shares boundaries with the Arctic Ocean on the N, northern Pacific Ocean on the W, China, Mongolia, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia on the S , and the Black Sea, Ukraine, Belarus, Latvia, Estonia, Finland on the W with a total land boundary of 19,990 km (12,421 mi) and a coastline of 37,653 km (23,396 mi). Russia's capital city, Moscow, is located in the eastern part of the country. Its southern portion is attached with black sea and northern portion is attached with Arctic Ocean. ()
Climate : Russia’s most part have continental climate, with long, cold winters and brief summers. There is a wide range of summer and winter temperature and relatively low perception. Annual precipitation decreases from about 64 – 76 cm (25 – 30 in) in the European region to less than 5 cm (2 in) a year in parts of central Asia. The far northern forest has long severe winters, short summers, and extremely short springs and autumns.
CITY 1. 2.
TEMPERATURE in OC (April 01, 2009) Moscow st. peterburg 0.6 3
3. 4. 5. 6. 7.Vladivostok
Ekaterinburg Omsk Tomsk Yakutsk 9
2 11 0 -1
Topography There are different kinds of trees in Russia like cedar, spruce etc. Taiga is world’s largest forest area and is in Russia. It spreads over north east region of the country. Around 33 per cent of total population settles in Taiga. It is also known as tourist hub. (Topography and Drainage, n.d.) Around 24.5 million tourist vist Russia in the year 2004 (According to Travel daily news). This create another opportunity to launch our product in these regions. There are lots of people visiting from China, Finland and other neighbouring countries for a trip or small scale business. (Topography and Drainage, n.d.)
Social Institutions: Family
There was a change in average Russian family (1994 survey). According to experts, Russians rely more heavily than ever on the family. This was because of the social and economic crises. On an average there are 6 members living in each apartment. Russians spend more time with their family. Hence the mutual understanding between children and parents is more. This will certainly help in our product as tea is usually preferred with family members or friends. (Russian Culture background)
Education Russia has maintained its high quality standards for long period and producing a literacy rate of 98 per cent exceeding most western countries. Education is in two parts Compulsory Basic Education Compulsory basic education last for nine years. After this graduated may continue their education at senior high school to receive secondary general education. Higher Education There are two types of higher education • Basic higher education which is for four years leading to Bakalavr's degree. It is equivalent to B.Sc degree in US or Western Europe. • Postgraduate higher education which is for 5-6 years leading to Magistr's degree. This is equivalent to master degree in US.
Higher education is provided by public or non-public (non-state) accredited higher education institutions.
Literacy rate: Russians has always maintained its standards high in education. Literacy rate of total population is 99.4 per cent. Literacy rate among male is 99.7 per cent and 99.2 per cent among women (according to census 2002). All the above figures are for age 15 and above who can read and write. Expectancy of school life is 14 years and expenditure on education is 3.8 per cent of GDP. Russia Population Literacy Rate Unemployment Rate Illiteracy Rate Literate unemployed rate (). Percentage 99.4% 6.2% 0.6% 5.6% Figures 140041247 139201000 8682557 840247 7842310
After “soviet union” collapsed in 1991, Russia became independent. Russian federation consists of 21 autonomous republics with Moscow being capital. There are three branch system of government. The executive branch, the legislative branch which is a bicameral federal assembly, it consists of the State Duma and the Federal Council. The State Duma has 450 members and the Federal Council has 176 members. Judicial Branch: Constitutional CourtSupreme Court(highest court for criminal, and administrative cases), Superior Court of Arbitration (highest court that resolves economic matters) Political parties: There are four types of political parties in Russia : i. United Russia: - The leader name is “Vladimir Putin” ii.Communist Party of Russian Federation: - The leader name is “Gennady” iii.Liberal Democratic Party of Russia: - The leader of this political party is “Valdimar Zhirinovsky”. iv. Fair Russia: - The party is leading by “Sergey Mironov”. () Special Taxes Russia’s tax system was amended in the year 2001to make sure that companies and common people can survive and do business with minimum burden from the government. Currently Russian has to give 13 per cent tax where as foreigners has to pay 15 per cent. But in case of corporate tax, all companies have to pay 24 per cent tax. This 24 per cent tax is divided into
Federal tax that is 6.5 per cent and regionaltax that is 17.5 per cent. In addition to that 2 per cent tax is charged as VAT. (Russia Income Taxes and Tax Laws, 2009) Legal System The judiciary system of Russia is split into three branches: the regular court system with Supreme Court on top, the arbitration court system with the High Court of Arbitration on top, and the Constitutional Court as a single body with no courts under it. The dispute between business entities is taken by courts of arbitration. There are eighty-two courts of arbitration. Apart from the arbitration court system, no court handle domestic relations or probate disputes. () Religion Russian Orthodox Christianity is a chief religion which is 75 per cent of total population and they describe themselves as religious beliver .The country has over 5000 Russian orthodox churches. The second largest religious community in Russia is Muslims. There are over 800 parishes and mosques. Buddhism and Jews are also wide spread in Russia. Languages Russian is a official language spoken in Russia and 81 per cent of population speaks it. There are over 100 minority languages spoken in Russia today, the most popular is Tartar, spoken by more than 3% of the country's population, Ukrainian, Chuvash, Bashir, Mordvin and Chechen. These populations make up even 1% of the Russian population, these languages are prominent in key regional areas.
A History of Tea Timeline. (n.d.). Retrieved april 3, 2009, from www.2basnob.com: http://www.2basnob.com/tea-history-timeline.html
http://www.orimitrade.ru/e/russian-tea-market-trends/ http://www.nationsencyclopedia.com/Europe/Russia-LOCATION-SIZE-AND-EXTENT.html http://www.nationsencyclopedia.com/Europe/Russia-CLIMATE.html http://countrystudies.us/russia/50.htm http://www.worldservicesgroup.com/countries.asp?c=rs&country=Russia http://www.russianembassy.org/RUSSIA/religion.htm http://www.kwintessential.co.uk/resources/global-etiquette/russia-country-profile.html
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.