Russian Firms Plot Aggressive Marketing Plans For 2003
As the final quarter of the year approaches, Russian software firms are taking steps to raise their visibility among global IT buyers, which is vital for 2003 growth and establishing Russia as a clear emerging market.
Oct 09, 2002
MOSCOW - As the final quarter of the year approaches, Russian software firms are taking steps to raise their visibility among global IT buyers, which is vital for 2003 growth and establishing Russia as a clear emerging market.
"We have taken part in various trade shows, initiated and updated memberships in community sites like Outsourcing-Russia.com, Outsourcing-Center.com and others," said Valery Kalachev, director of Nizhni Novgorod-based software firm Telma, a developer of software for mobile devices. According to Kalachev, another important direction of activities has been the pinpointing of potential customers and developing a direct marketing strategy. "In addition to these two areas of activities, we're planning to redesign our website, update, print and distribute our marketing presentation materials, and participate in a few trade shows and exhibitions before the end of the year," he said.
Among ways of raising visibility for Russian offshore software developers is working closely with analysts from internationally recognized groups.
"During the last year, we have actively cooperated with analysts, particularly with Aberdeen Group," said Anatoly Gaverdovsky, chairman of the board of Vested Development Inc. "A report on examples of successful cooperation between Russian software developers and Western customers has been recently published, which includes a description of a project Vested Development Inc. implemented for XENERGY." Gaverdovsky added that, in his opinion, publications of that kind not only help to raise visibility of individual companies in the offshore software business but also help the domestic IT industry as a whole to form a more positive and promising image among potential customers abroad. "This is our real investment in overseas development and promotion," he said, adding that along with Aberdeen Group, Vested Development also used services of other analysts, including Gartner Group, but the company's attempt to attract potential customers' attention to Russia as a level 2 supplier failed.
Another step Vested Development took in a bid to raise visibility was a series of interviews with potential customers. "This is a most effective tool, which is especially efficient for a company's repositioning, defining its business directions, competitive advantages and prospects," Vested Development's chairman said.
According to Vera Kurochkina, marketing director at Luxoft, an offshore software division of IBS group, the company's most important marketing step recently has become hiring a U.S. PR company to support Luxoft's efforts aimed at building and promoting its brand in the overseas market. "Also, we hired a telemarketing group to contact our potential customers, which, we hope, will also help to raise visibility and improve the brand's recognition," Kurochkina said.
Novosibirsk-based Novosoft said it pays a special attention to the updating and improving of the company's Website as a tool of raising visibility and brand recognition. This year, a German and a Japanese version of Novosoft's corporate Website were launched. "We also work with international consulting companies who have significant expertise in the area of business integration and IT," said Sergei Kovalyov, director of Novosoft Inc. "Partnership with such companies is a key direction for our business development. Also, we take part in events organized on a federal and on a regional level and work on establishing contacts with foreign trade and commerce chambers, international trade association and governmental initiatives, such as "Nuclear City Initiative" by the U.S. Energy Department".
Overall, Russian offshore software developers' marketing tools are, to a large extent, aimed at improving the companies international visibility and brand recognition. "We are focusing on emphasizing our competitive advantages more clearly," said Vested Developments' Gaverdovsky. "And we're also planning to step up our PR efforts in the foreign market."
According to Gaverdovsky, at the moment, potential customers know very little about the Russian IT market, and about the possibilities and advantages of Russian software developers. "A policy focused only on lower prices can't stand any competition," he said. "This way of thinking needs to be overcome."
In a move to raise visibility among potential customers, Luxoft is planning to organize a series of press events in U.S. large industrial centers and a few Web-seminars that, the company hopes, will allow the company to tell its potential customers about the company and its possibilities as one of Russia's largest offshore software developers. "Also, we're planning to organize a small road-show in Europe in order to present the most promising Russian software technology using the examples of several large projects we have recently implemented for major international customers," Luxoft's Kurochkina said. "We're also planning to continue with our telemarketing campaign."
For many Russian software developing companies, participation in domestic and international exhibitions and seminars is a good way to present themselves to potential customers. "We're planning to participate in Comdex Fall 2002 and CeBIT 2003, those are the major two for us," said Telma's Kalachev, adding that his company may also have a limited participation in smaller shows, like those sponsored by RusSoft association.
"We have applied for participation in several domestic and international exhibitions and conferences," Vested Developments' Gaverdovsky said. "But I wouldn't overestimate the importance of this kind of events in terms of raising a company's visibility abroad."
According to Gaverdovsky, such events attract many colleagues, partners and competitors, but too few potential customers attend, despite that the only goal of many participating firms is to establish contacts with foreign companies that could give them software developing orders. "Therefore, the practical results of participation in exhibitions, despite that substantial financial and other resources are spent on preparation and participation itself, are insignificant," Gaverdovsky charged. "In my opinion, contacts with mass media can do much more for a company in terms of raising visibility."
Professional associations of software developers also take steps aimed at raising domestic programmers' visibility. The Silicon Taiga national software developer alliance has prepared the first edition of a Russian software developer directory aimed at potential foreign customers. "Although technically a customer can find information on any company on the Web, it takes time and resources, and the language barrier also exists," Yuri Ushakov, a spokesman for Silicon Taiga said. He added that for the association's member companies such major international events as COMDEX NORDIC and CEBIT are most important. In addition Silicon Taiga, similarly to another Russian software developer association, RusSoft, organizes its on seminars.
"From our experience, among all events, the most effective for us are industrial exhibitions," Luxoft's Kurochkina said. "So we're planning to take part in a few large aviation forums and a forum of financial institutions."
"The Russian IT industry simply can't be ignored by the government any longer, and professional associations like RusSoft have to be financially supported by the state," said Telma's Kalachev.
"The industry needs investment from the government," added Vested Developments" Gaverdovsky. "A separate company or even a group of several companies don't have enough resources to build a brand for the Russian software development industry. There is a need for a consistent program aimed at promoting the domestic software industry internationally, which would involve state institutions, entrepreneurs, Western PR agencies and which would have a budget for all of that."
According to Luxoft's Kurochkina, the government's support and its role in the forming of an overall positive ima
"We have taken part in various trade shows, initiated and updated memberships in community sites like Outsourcing-Russia.com, Outsourcing-Center.com and others," said Valery Kalachev, director of Nizhni Novgorod-based software firm Telma, a developer of software for mobile devices. According to Kalachev, another important direction of activities has been the pinpointing of potential customers and developing a direct marketing strategy. "In addition to these two areas of activities, we're planning to redesign our website, update, print and distribute our marketing presentation materials, and participate in a few trade shows and exhibitions before the end of the year," he said.
Among ways of raising visibility for Russian offshore software developers is working closely with analysts from internationally recognized groups.
"During the last year, we have actively cooperated with analysts, particularly with Aberdeen Group," said Anatoly Gaverdovsky, chairman of the board of Vested Development Inc. "A report on examples of successful cooperation between Russian software developers and Western customers has been recently published, which includes a description of a project Vested Development Inc. implemented for XENERGY." Gaverdovsky added that, in his opinion, publications of that kind not only help to raise visibility of individual companies in the offshore software business but also help the domestic IT industry as a whole to form a more positive and promising image among potential customers abroad. "This is our real investment in overseas development and promotion," he said, adding that along with Aberdeen Group, Vested Development also used services of other analysts, including Gartner Group, but the company's attempt to attract potential customers' attention to Russia as a level 2 supplier failed.
Another step Vested Development took in a bid to raise visibility was a series of interviews with potential customers. "This is a most effective tool, which is especially efficient for a company's repositioning, defining its business directions, competitive advantages and prospects," Vested Development's chairman said.
According to Vera Kurochkina, marketing director at Luxoft, an offshore software division of IBS group, the company's most important marketing step recently has become hiring a U.S. PR company to support Luxoft's efforts aimed at building and promoting its brand in the overseas market. "Also, we hired a telemarketing group to contact our potential customers, which, we hope, will also help to raise visibility and improve the brand's recognition," Kurochkina said.
Novosibirsk-based Novosoft said it pays a special attention to the updating and improving of the company's Website as a tool of raising visibility and brand recognition. This year, a German and a Japanese version of Novosoft's corporate Website were launched. "We also work with international consulting companies who have significant expertise in the area of business integration and IT," said Sergei Kovalyov, director of Novosoft Inc. "Partnership with such companies is a key direction for our business development. Also, we take part in events organized on a federal and on a regional level and work on establishing contacts with foreign trade and commerce chambers, international trade association and governmental initiatives, such as "Nuclear City Initiative" by the U.S. Energy Department".
Overall, Russian offshore software developers' marketing tools are, to a large extent, aimed at improving the companies international visibility and brand recognition. "We are focusing on emphasizing our competitive advantages more clearly," said Vested Developments' Gaverdovsky. "And we're also planning to step up our PR efforts in the foreign market."
According to Gaverdovsky, at the moment, potential customers know very little about the Russian IT market, and about the possibilities and advantages of Russian software developers. "A policy focused only on lower prices can't stand any competition," he said. "This way of thinking needs to be overcome."
In a move to raise visibility among potential customers, Luxoft is planning to organize a series of press events in U.S. large industrial centers and a few Web-seminars that, the company hopes, will allow the company to tell its potential customers about the company and its possibilities as one of Russia's largest offshore software developers. "Also, we're planning to organize a small road-show in Europe in order to present the most promising Russian software technology using the examples of several large projects we have recently implemented for major international customers," Luxoft's Kurochkina said. "We're also planning to continue with our telemarketing campaign."
For many Russian software developing companies, participation in domestic and international exhibitions and seminars is a good way to present themselves to potential customers. "We're planning to participate in Comdex Fall 2002 and CeBIT 2003, those are the major two for us," said Telma's Kalachev, adding that his company may also have a limited participation in smaller shows, like those sponsored by RusSoft association.
"We have applied for participation in several domestic and international exhibitions and conferences," Vested Developments' Gaverdovsky said. "But I wouldn't overestimate the importance of this kind of events in terms of raising a company's visibility abroad."
According to Gaverdovsky, such events attract many colleagues, partners and competitors, but too few potential customers attend, despite that the only goal of many participating firms is to establish contacts with foreign companies that could give them software developing orders. "Therefore, the practical results of participation in exhibitions, despite that substantial financial and other resources are spent on preparation and participation itself, are insignificant," Gaverdovsky charged. "In my opinion, contacts with mass media can do much more for a company in terms of raising visibility."
Professional associations of software developers also take steps aimed at raising domestic programmers' visibility. The Silicon Taiga national software developer alliance has prepared the first edition of a Russian software developer directory aimed at potential foreign customers. "Although technically a customer can find information on any company on the Web, it takes time and resources, and the language barrier also exists," Yuri Ushakov, a spokesman for Silicon Taiga said. He added that for the association's member companies such major international events as COMDEX NORDIC and CEBIT are most important. In addition Silicon Taiga, similarly to another Russian software developer association, RusSoft, organizes its on seminars.
"From our experience, among all events, the most effective for us are industrial exhibitions," Luxoft's Kurochkina said. "So we're planning to take part in a few large aviation forums and a forum of financial institutions."
"The Russian IT industry simply can't be ignored by the government any longer, and professional associations like RusSoft have to be financially supported by the state," said Telma's Kalachev.
"The industry needs investment from the government," added Vested Developments" Gaverdovsky. "A separate company or even a group of several companies don't have enough resources to build a brand for the Russian software development industry. There is a need for a consistent program aimed at promoting the domestic software industry internationally, which would involve state institutions, entrepreneurs, Western PR agencies and which would have a budget for all of that."
According to Luxoft's Kurochkina, the government's support and its role in the forming of an overall positive ima