Strategies of Foreign Multinational Companies in the Russian Dairy Market

Abstract:

The article studies the theory and practical implementation of strategies used by multinational companies which invest in milk processing sphere in Russia. Dairy business is a socially important one, and its development in Russia has good prospects. Per capita dairy under-consumption still persists in our country.  Focus is made on conceptual comprehension of transnationalisation process of economies with a developing market. It has also studied the history of foreign direct investment into the country’s diary industry; penetration strategies used by PepsiCo and Danone companies; a framework of Russian business pre-market preparations; the changes in competitive environment of dairy industry, which is connected with MNC arrival. We made a conclusion about the realization of a glocalisation paradigm and about the high effectiveness of marketing strategies, which are used by MNC on the Russian dairy market. Finally, their usage has led to the changes in effects of MNC presence: i.e., from national business supplement to its replacement. Anti-Russian sanctions, imposed in 2014, and ruble devaluation in general stimulate the foreign industrial companies’ localization on the territory of Russia.

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