A study on brand competitiveness: A comparative analysis of European and Korean auto brands in the Russian automotive industry

Abstract

This study compares brand competitiveness of European and Korean auto brands in the Russian automotive market based on cross-sectional datasets for 42 auto brands in Russia of the year 2022. The econometric models (OLS, WLS, and Robust least squares) are constructed by employing a theoretical frame of Porter’s diamond model. The results of the regression analysis allowed us to get to the conclusion that product diversification, accessibility to dealers (or retail shop) and active social media marketing are critical factors to promote auto sales in the Russian market. Based on the comparison, we can draw two important conclusions. First, Korean auto brands are ahead of the European auto brands in value chain management as they have a huge pool of dealers and maximize contact with potential Russian customers. Secondly, the German auto brands lead when it comes to product diversification and social media marketing. However, Korean auto brands are not behind based on those criteria compared to the average European auto brand, and take an above average-middling position. From the outstanding performance of Korean auto brands in the Russian market especially, it seems that securing numerous retail channels is particularly crucial. The results of this study are helpful for national and international automotives companies to create business strategies in the Russian automotive industry.