МОСКОВСКАЯ ВЫСШАЯ ШКОЛА СОЦИАЛЬНЫХ и

ЭКОНОМИЧЕСКИХ НАУК

Программа «Менеджмент креативных проектов»

Эссе по курсу «Маркетинг»

MCA 010

Тема:
«Модели маркетингового анализа на примере духов «Красная Москва»
Topic:
"Models of marketing analysis on the example of perfume "Krasnaya
Moskva"

Преподаватель: Bjorn Stenvers

Объём эссе:
Адрес электронной почты слушателя: mss1707007@universitas.ru
Оглавление
Introduction.............................................................................................................................................................. 3
Short information reference.............................................................................................................................. 4
Other main brands at that time.................................................................................................................... 4
Main part.................................................................................................................................................................... 5
Target audience.................................................................................................................................................. 5
Main competitors of “Krasnaya Moskva”................................................................................................. 5
Ansoff Matrix....................................................................................................................................................... 5
Growth–share matrix (BCG-matrix)........................................................................................................... 6
Product life-cycle............................................................................................................................................... 6
P’s model............................................................................................................................................................... 7
5 P’s of Krasnaya Moskva.......................................................................................................................... 7
Swot-analysis....................................................................................................................................................... 8
Business Model Canvas................................................................................................................................... 8
Conclusion.............................................................................................................................................................. 10
Reference list......................................................................................................................................................... 11
Introduction
Along with the appearance of market relations, marketing was born. Undoubtedly,
marketing as a separate scientific discipline took place much later, but the marketing tools
themselves have been used for centuries. It is inextricably linked with such concepts as
competition and the development of trade relations, because there arose a need for methods that
stimulate trade, help to present a product in the best way and sell it 1. Marketing helps to match
market needs with production capabilities2. At the present stage of the developed world economy
(and trade relations), it is difficult to imagine our reality without marketing tools. All existing
brands owe their origin and popularity to this discipline – to marketing.
Russia is the biggest country in the world. Of course, it has its own images, the mention
of which immediately leads to an association with Russia and in some cases with the USSR.
Some of these images are the brands Russia is famous for. One of the most famous symbols of
Soviet Russia is the perfume “Krasnaya Moskva”. Today “Krasnaya Moskva” is a subject of my
interest to analyze from a marketing point of view.
In the framework of this analytical work I would like to examine in detail several
marketing models. I will focus on such marketing tools as determination of target audience,
competitive research, Ansoff matrix, Growth–share matrix (or BCG-matrix), Product life-cycle
(PLC), 5 P’s model, SWOT analysis and Canvas Business model. Finally, I will make an attempt
to give a marketing advice for further development of “Krasnaya Moskva” perfume brand.
The aim of my research is to review eight models of marketing analysis listed in the
previous paragraph and to apply them to the “Krasnaya Moskva” perfume brand.
The object of this inquiry are the models of marketing research.
The subject-matter of this research is “Krasnaya Moskva” perfume brand. Through this
brand I will illustrate each of the marketing analysis models.
The methodology of writing a research paper includes critical analysis, marketing
analysis. Also, a descriptive method was used to illustrate theoretical material.

1
Levitt, T. (1960) ‘Marketing myopia’, Harvard Business Review, 38 (Jul/Aug): 45-56.
2
Kohli, A.K. and Jaworski, B. (1990) ‘Market orientation. the construct, research propositions
and managerial implications', Journal of Marketing, 54 (April): 1-18.
Short information reference
Before I start with observing marketing models, I would like to give a brief history of
“Krasnaya Moskva” brand. “Krasnaya Moskva” was the first Soviet-made perfume. Its origins
are disputed. According to the most widespread version, perfume of pre-revolutionary Russia
known as “Le Bouquet Préféré de l'Impératrice” became the prototype of “Krasnaya Moskva”.
The fragrance was created in Henri Brocard's factory in 1913 (“Novaya Zarya”). After the
revolution in 1917 the fragrance was resumed by “Novaya Zarya” factory in 1925 under the
name of Krasnaya Moskva3. “Krasnaya Moskva” immediately occupied a niche of perfumery of
the highest grade and stood at the level of the best foreign samples. The most famous women of
the country (movie stars, wives of the capital's nomenclature, famous drummers) used this
perfume.
By 1936 the Soviet Union took third place in the world in the production of
perfumes (after the United States and Great Britain) 4.
In 1958, “Krasnaya Moskva” was awarded a prize at the World Exhibition in Brussels. In
1973, the article “The Flying Prisoner” was published in the journal Chemistry and Life,
according to which the perfume “Krasnaya Moskva” contains almost 60 components5. Since
1995, the perfume has represented Russia in the Osmotheque odors library in Versailles. In 2000,
“Krasnaya Moskva” won the Grand Prix at the International Exhibition-Fair of Perfumery
Products6.

Other main brands at that time

To describe the time of “Krasnaya Moskva” heyday I would list other main brands of that
time7:
• Chocolate "Alenka"

3
История духов «Красная Москва» // Публичная библиотека Новоуральского городского
округа URL: http://www.publiclibrary.ru/readers/kaleidoskop/goods-duhi-Red-Moskow.htm
(дата обращения: 29.04.2020).
4
Советская торговля. 1961. Т. 39. М., 1961. С. 18.
5
Фридман. Р.А. Парфюмерия и косметика. М., 1973. С. 49.
6
Красная Москва // Casual URL: https://www.casual-info.ru/wiki/Красная%20Москва/ (дата
обращения: 29.04.2020).
7
Ностальгическая корзина // Lenta.ru URL: https://lenta.ru/articles/2016/03/25/madeinussr/
(дата обращения: 30.04.2020).
• Motorcycle "Ural"
• Zenit Camera
• Indian tea
• Cocoa “Zolotoi Yarlyk”
• RRR (Radiotehnika)
• Cheese “Druzhba"
• Watch “Victory”
• Port wine “777”
(see Appendix)
Main part
The main part of this research contains two parts: theoretical material and case-study. I
have decided to combine them. I will study some of marketing models and show how they work
on the example of perfumes "Krasnaya Moskva".
For many centuries marketing has been helping producers understand the market and sell
products with maximum business benefits.
As an independent science, marketing was formalized in the 18-19th centuries, in the
heyday of industrial evolution, significant social changes, the development of mass production,
transport infrastructure and the appearance of the first media.
Kotler identifies five main steps in the development of marketing theory [Kotler, 1980]8.
Each of them is an independent concept of marketing management.
1. Improvement of the production.
2. Improvement of a product.
3. Concentration on product sales.
4. Consumers’ concept.
5. Socio-ethical marketing.

Target audience
However, at first, since its appearance not everyone could afford to buy this product. After
all, perfume is not generally a cheap thing, and “Krasnaya Moskva” was an elite and limited
perfume unit.
But a little while later, due to the relative cost reduction of the product (A bottle of perfume
for 60 rubles - a Soviet worker can afford it! The amount for those times is impressive, but
up to perestroika it practically did not change, and with constant increase of salaries "Red
Moscow" gradually transferred from elite perfumes to national and general perfume, price
has not changed since 1955) and the decision to produce a budget line along with the elite
one (including the decision to make a simple and cheap packaging so that the buyer does
not overpay for it) Krasnaya Moskva reaches an incredible mass of sales and greatly
expands its target audience.
If we are talking about the current target audience, now it is mainly represented by aged
women (those who have already got accustomed to this perfume, they are driven by
nostalgic feelings) and young girls buying “Krasnaya Moskva” as an attribute of a vintage
style.

• The target audience of “Krasnaya Moskva” during its heyday was almost the entire
female half of the population of the USSR.
• Thus, in 1961, 100/1000 in the USSR bought the products of Red Moscow, and in
1966 10.7 million units of goods were sold.

8
Kotler, P. and G. Armstrong, 2008. Principles of Marketing. Prentice Hall.
 • Current target audience is mainly represented by aged women (those who have
already got accustomed to this perfume, they are driven by nostalgic feelings) and
young girls buying “Krasnaya Moskva” as an attribute of a vintage style.

Competitive analysis
To improve the product and to increase the profit from its sales the producer should be
aware of his competitors on the market. He should carefully analyze their advantages and weak
points. The correct usage of the results of such competitive analysis contributes to increased
sales and profits.
Main competitors of “Krasnaya Moskva”
All in all, “Krasnaya Moskva” was out of competition, it was a universal hit. Formally, its
main competitors were French perfumes, which gradually began to penetrate the Soviet market,
but they were too expensive for the majority of Soviet population.
However, in 1958, Kharkov company “Rassvet” introduced new perfume “Indiiskiy Sandal”.
They also quickly got the recognition of Soviet women, but were never able to reach the level of
“Krasnaya Moskva” popularity and gain the same universal love.

Ansoff Matrix
Теория + рассказ про красную Москву + диаграмма

Growth–share matrix (BCG-matrix)

We know that we can rank the business units (or products) on the basis of their relative market
shares and growth rates according to the BCG-matrix or Boston Consulting Group analysis
created by Bruce D. Henderson.
There are 4 main types: Cash cows is where a company has high market share in a slow-growing
industry. Dogs, or pets, are units with low market share in a mature, slow-growing industry.
Question marks (or adopted children) are businesses operating with a low market share in a
high-growth market. Stars are units with a high market share in a fast-growing industry.
After having analysed «Krasnaya Moskva» in terms of marketing, I came to a conclusion that
 • During the Soviet Union "Krasnaya Moskva" was perceived precisely as a perfume,
as the leading product of the leading perfume factory, this production (due to the
limited availability of competitors in the market and its quality) occupied a huge
share in its sector.
• That’s why I would categorize "Krasnaya Moskva" perfume as a Star according to
the BCG-matrix

• Now “Krasnaya Moskva" plays a completely different role, has a completely different
meaning. Now it is a name, a brand, a story, a tradition, a symbol. The “Novaya
Zarya” with its “Krasnaya Moskva" has not lost among competitors.
• That’s why I believe that today’s “Krasnaya Moskva” cannot be assigned to any
group of BCG-matrix. It now has a special place in the market.

Product life-cycle
PLC is a curve reflecting the phase of development of a product or “the course of product’s
sales and profits over its lifetime”9. Five (in some sources four) main phases are distinguished:
1. Product development. This stage consists of designing of the idea without any sales.
2. Introduction. The product is introduced to consumers at a first time.
3. Growth. It includes the peak time of success in terms of sales.
4. Maturity: a period of stagnation due to reaching the majority of potential buyers.
5. Decline: the period of recession when sales the profit decrease.
PLC of “Krasnaya Moskva”
Most of the assortment at Glavparfyumer is occupied by the products of the Russian
factory “Novaya Zorya”. Its “Krasnaya Moskva” is truly a hit of past decades. Now this
perfume is experiencing a new round of popularity. This fragrance with an ideologically
consistent name was introduced to the public in 1925 at the height of NEP. “Krasnaya
Moskva” immediately became luxurious product and the main competitor of the best
foreign samples.
During the first post-war decade, the production of perfumes and cologne "Krasnaya
Moskva" increased tenfold. Thus, in 1961, 100/1000 in the USSR bought the products of
Red Moscow, and in 1966 10.7 million units of goods were sold. In 1967, in the Poem on
Different Points of View, Robert Rozhdestvensky expressed the dream of several
generations of Soviet women:
Rain,
not stopping
for an hour,
or maybe two,
will pour
by perfume

9
Kotler, P. and G. Armstrong, 2008. Principles of Marketing. Prentice Hall, p: 283.
 “Krasnaya Moskva”10.
At the end of February 2019, based on legends, cultural myths and stereotypes
about “Krasnaya Moskva”, an account dedicated to spirits appeared on the social network
Instagram. The account can be classified as an art project designed to integrate a vintage
flavor into a modern context.

Life-cycle of “Krasnaya Moskva”

12
10
volume of sales

8
6
4
2
0
1920's 1966 1990's 2019

The year

P’s model
The most traditional P’s model consists of 4 P’s (Product, Place, Price, Promotion).
However, the initial concept was developed in the late 1940’s by a Professor of Marketing
at Harvard University, Prof. James Culliton11 and then several P were added and the
concept turned into 5 P’s model, then into 7 P’s and then into 9 P’s. In 5 P’s model the P’s
stand for Product, Place, Price, Promotion, People.
5 P’s of Krasnaya Moskva
• PRODUCT: perfume Krasnaya Moskva; the slogan (now) is “Buy yourself a piece of
history”
• PLACE: company (Novaya Zarya) shops in malls, perfume shops, cosmetic shops,
“beauty” departments, online orders are also available
• PRICE: the perfume has an average market price, it cannot be said that it is close to
the most expensive things or the cheapest ones (by the way, the price of Krasnaya
Moskva hasn’t been changed since 1955 until recently)

10
Дождь, -
не затихая
час,
а может, два, -
будет лить
духами
"Красная Москва".
Рождественский Р. И. Лучшие стихи. - М.: ООО «Издательство Астрель», 2016. - С. 126.
11
Banting, P.M.; Ross, R.E. (1973). "The marketing mix: A Canadian perspective". Journal of
the Academy of Marketing Science. 1 (1).
 • PROMOTION: pull marketing strategy, promotion through films, series, exhibitions,
festivals, through celebrities’ image, the idea of joining the idol community using the
same means
• PEOPLE: consumers who act as «opinion leaders» in the category, employees
representing the company and the product

Swot-analysis
Strengths:
• name: 1) reflection of ideology; 2) "red" = "beautiful"; 3) reflection of the
manufacturer; 4) communication with Red Square as an already well-known brand
• persistent and very pleasant unique aroma
• concise design (packaging + bottle)
• metropolitan production
Weaknesses:
• renaming
• only one fragrance at first
• too strong smell*
• the new name pushed back the adherents of the old regime
• high cost of production due to the use of exceptional materials
Opportunities:
• The allies of the USSR bought perfume as a sign of recognition, admission, because
its name reflects the name of the capital of the largest country in the world.
• Competitive product in the international arena.
• In 1958, they were awarded a prize at the World Exhibition in Brussels.
• The brand name is very recognizable all over the world.
• An Instagram account of “Krasnaya Moskva” appeared at the end of February 2019,
based on legends, cultural myths and stereotypes about “Krasnaya Moskva”.
• nostalgia / vintage tendency
• Contribution to society of Soviet women
Threats:
• Environmental changes can negatively affect ingredients
• Modern tendency to blacken soviet reality
• Purely Soviet name could repel representatives of capitalist countries
• Perfume is difficult for the first time to buy online only by the written description of
the fragrance
• Reduced use during an epidemic
• In case of economic upheaval, the aroma blend may be sold or lost

Business Model Canvas12

- it is a
Now I’d like to fulfil these gaps according to “Krasnaya Moskva” brand.

Canvas of “Krasnaya Moskva”

Key partners:
• Environmental organizations
• Producers and suppliers of raw materials
• Packaging manufacturers and suppliers
• countries of Europe, Asia, Africa
Key activities:
12
https://web.archive.org/web/20061213141941/http://business-model-design.blogspot.com/2005/11/
what-is-business-model.html
 • Manufacture of perfume and cosmetic products, toilet soap, essential oils, synthetic
and aromatic substances.
• Trademark protection
Key resources:
 Raw materials (oils, essences),
 Packaging material
 Alcohol
 People
 Capital
Value:
• Historical
• Aesthetic
• Ideological
• Political
• Image-building
Relationships:
• Degustation
• Presentation of products both in large related stores and in specialized perfume
stores.
• There are stores in which the widest assortment is presented, the historical value of
the product is emphasized in the design of company store, due to which an
appropriate atmosphere is created.
Channels:
 retail, wholesale trade
 Sales through exhibitions, festivals
 Trade in Bulgaria, France, Italy, China, Indonesia, Algeria, Madagascar, Australia and
South Africa
Customer segment:
 aged women and young fans of vintage style
Cost centers:
 High quality of functioning of departments that
 indirectly affect profit growth.
 Making forecasts based on the assessment of the dynamics of changes and
calculations.
 High competition for hiring.
 The brand does not need total advertising.
 Widespread sales at small points of sale.
Revenue streams:
• Sale of assets. (one-time income)
• Trademark sale. (recurring income)
• Development of online sales to generate additional income at the lowest cost.
Conclusion
I have examined eight models of marketing research. To sum up, I would say that
marketing is a unique complex combination of processes of creation, promotion and
exchanging of a product in order to meet the needs and interests of people, i.e. potential
consumers. Marketing models are tools helping to recognize and understand better the real
demand and to satisfy it fully with the maximum benefit for the producer.
After conducting a marketing research of «Krasnaya Moskva» through several of the
most famous marketing models, I came to a conclusion that «Krasnaya Moskva» is a fully-
fledged competitive brand with a long and memorable history behind its shoulders, it has
enough chance to reach its peak again in its life cycle.
For its return, this brand can take advantage of the increased interest in vintage
attributes which we can observe in today’s society. Moreover, to attract new interest to the
product, i.e. the perfume, to be refreshed and renewed, the brand of “Krasnaya Moskva”
may be renamed as, for example, “PreKrasnaya Moskva”, what means “Beautiful Moscow”.
This version would save the reference to the previous legendary name and its historical
value: however, it would hint at some changes and innovations.
Reference list
1. Фридман. Р.А. Парфюмерия и косметика. М., 1973. С. 49.
2. Статистическая таблица ЦСУ СССР "Государственные розничные цены
нормированной торговли в 1940, 1945 гг. и коммерческой торговли в 1940, 1942,
1944-1945 гг. на отдельные непродовольственные товары"/ Сборник документов
"Советская жизнь. 1945-1953 гг.". М., 2003.

• История духов «Красная Москва» // Публичная библиотека Новоуральского

городского округа URL:
http://www.publiclibrary.ru/readers/kaleidoskop/goods-duhi-Red-Moskow.htm
(дата обращения: 29.04.2020).
• Революция продолжается: нуждается ли наследие СССР в ребрендинге //
sostav.ru URL: https://www.sostav.ru/articles/2007/01/18/ko1/ (дата
обращения: 29.04.2020).
• Красная Москва // Casual URL: https://www.casual-info.ru/wiki/Красная
%20Москва/ (дата обращения: 29.04.2020).
• red_moskva // Instagram URL: https://www.instagram.com/red_moskva/?hl=ru
(дата обращения: 29.04.2020).
• «Советский » парфюм переживает второе рождение в Барнауле //
Яндекс.Новости URL:
https://yandex.ru/turbo/s/alt.kp.ru/daily/27053/4120156/ (дата обращения:
29.04.2020).
• "Красная Москва" // Родина URL: https://rg.ru/2019/07/09/rodina-legendy-
krasnaya-moskva.html (дата обращения: 29.04.2020).
• Основные элементы и принципы маркетинга // PowerBranding URL:
http://powerbranding.ru/osnovy-marketinga/ (дата обращения: 29.04.2020).
• Exploit the Product Life Cycle // Harvard Business Review URL:
https://hbr.org/1965/11/exploit-the-product-life-cycle (дата обращения:
29.04.2020).
• The BCG matrix and the product life-cycle (PLC) // Marketing Study Guide URL:
https://www.marketingstudyguide.com/the-bcg-matrix-and-the-product-life-cycle-
plc/ (дата обращения: 29.04.2020).
• Новая заря Красная Москва // ParfumClub URL:
https://parfumclub.org/perfumes/nouvelle-etoile-novaya-zarya-krasnaya-moskva-
w.html (дата обращения: 28.04.2020).
• Рассвет Индий ский сандал // ParfumClub URL:
https://parfumclub.org/perfumes/rassvet-indiiskiy-sandal-w.html (дата
обращения: 28.04.2020).
• Духи Индий ский сандал // La Parfumerie URL:
https://www.laparfumerie.org/parfumedia/article/48961--духи-индий ский -
сандал/ (дата обращения: 28.04.2020).
• Ностальгическая корзина // Lenta.ru URL:
https://lenta.ru/articles/2016/03/25/madeinussr/ (дата обращения:
30.04.2020).
• Levitt, T. (1960) ‘Marketing myopia’, Harvard Business Review, 38 (Jul/Aug): 45-56.
• Kohli, A.K. and Jaworski, B. (1990) ‘Market orientation. the construct, research propositions and
managerial implications', Journal of Marketing, 54 (April): 1-18.
 Narver, J. and Slater, S. (1990) ‘The effect of a market orientation on business profitability ',
Journal of Marketing, 54 (Ott): 20-35.
 Филип Котлер «Основы маркетинга» Краткий курс.: Пер. с англ. — М.:
Издательский дом «Вильямс», 2007. — 656 с.
 Kotler, P. and G. Armstrong, 2008. Principles of Marketing. Prentice Hall.
Appendix
Short information reference

Other main brands at that time

PLC
Instagram vintage project
The main competitors

Ansoff Matrix
Canvas Business Model