Golden Deer in Eavorable Trend of Market Development in Russia

Source from:  Shanghai Tobacco Group 08/28/2006

The Golden Deer - a famous cigarette brand of Shanghai Tobacco Group - is in a favorable trend of development at the marketplace in Russia, after the Chinese tobacco manufacturer and its Russian cooperation partner jointly adopted measures to promote its sales on markets in Russia in early 2006. In 2003, Shanghai Tobacco Group and Russia's LD company under Gallaher of Britain signed an agreement to authorize the LD to produce and sell Golden Deer brand cigarettes in Russia in the form of trademark license. This development marked the first time that a transnational tobacco company was licensed to produce and sell cigarettes outside China using a Chinese cigarette brand. In May 2004, The Golden Deer went on the market in Russia. In an effort to promote its sales in Russia, Shanghai Tobacco Group and the LD jointly established a Golden Deer Promotional Taskforce in 2005. On the basis of market research and analysis, the relevant functional departments of Shanghai Tobacco Group have frequently contacted Asia-Pacific operations managers of Gallaher and professionals with the LD to conduct in-depth consultations on how to tap the potential of the value of The Golden Deer, definition of consumer groups, choice of key consuming cities, advertising, sales promotion, marketing planning, etc, contributing to significantly promoting the sales of The Golden Deer in Russia. By the end of July 2006, 1.0598 billion Golden Deer cigarettes (21,196 boxes) had been wholesaled in Russia while 478.7 million Golden Deer cigarettes (9,574 boxes) had been retailed on markets in the country. Besides, The Golden Deer has so far entered 50 percent of the cigarette retail outlets in Russia, compared with the rate of 15 percent at the end of 2005. Enditem