Russia’s middle class is undergoing phenomenal growth and is predicted to represent 86 per cent of the population by 2020 with a spending power of $1.3trn. Savvy brands are entering the market now to target this next big opportunity. Russia has been, if not in the hearts, then in the sights of Western brands over the past two decades, as they have sought to gain a foothold in the world’s biggest country while negotiating the political, economic and cultural difficulties posed by the evolving superpower.In the past year a number of major brands have made their move, with Apple[1], Asos[2] and Debenhams launching in the country, as well as super-franchise Peppa Pig. Meanwhile, Amazon has reportedly filed documents to open its first office in Russia after online auction site eBay opened an office in Moscow last year.Although political relations between the West and East remain tetchy at best, the business case for entering Russia appears increasingly attractive. Earlier this year, market research firm Nielsen noted that “stable gross domestic product growth, declining inflation and a record-low unemployment rate are pointing to positive consumer purchasing power in Russia”.According to the Brookings Institution, the Russian middle class will grow by 16 per cent between now and 2020, at which point it will represent 86 per cent of the population and amount to $1.3trn (£852bn) in spending, up 40 per cent on 2010. Russia, along with other BRIC countries Brazil, India and China, could contribute to a combined economy larger than the world’s richest countries by 2050, according to Goldman Sachs.While some brands have stayed away, put off by the challenges of this complex market, others are targeting Russia as their next big growth opportunity, encouraged by the rise of the middle class and the government’s efforts to project a more presentable face…

Creating a culture where experimenting is seen as vital and failure is not frowned upon can help brands make radical progress and boost success. “Failure is the only way to make radical progress,” said Google’s Astro Teller at last month’s Cannes Lions International Festival of Creativity. Teller, who runs Google X, the innovation lab behind Google Glass and Google’s self-driving car, says that most of what it generates is rejected.“The vast majority of ideas are killed off early – we try to stop them getting too big. Failure is not a comfortable feeling. You have to create an environment in which you can say ‘that was an awesome failure’.Companies including Tata Communications, Diageo and Yahoo! are all considering how to approach failure and why mastering it is fundamental to a brand’s ability to innovate and stay ahead of the competition.But fear of wasting time, money and losing a job might hold marketers back from trying things out. Coca-Cola’s Dasani mineral water, for example, was withdrawn from the UK in 2004 after the formulation was found to contain potentially harmful levels of bromate. And McDonald’s Arch Deluxe burger failed to appeal to its audience when it was launched in the late-1990s despite a reported $150m advertising campaign.However, creating a culture where failure is accepted and used as a launchpad for ideas can boost a brand. In the 1960s, car rental company Avis launched the phrase ‘We’re number 2. We try harder’ to take on market leader Hertz. The idea was risky because it highlighted the fact that it was not number one, but it worked and ran until last year, boosting turnover for Avis. The challenge for marketers is not to avoid failure but learn how to fail in the right way, says Unilever chief marketing officer Keith Weed. “Repeated failure…

As chief marketing officer at the UK’s second largest supermarket Asda, Stephen Smith is changing the retailer’s marketing from its functional focus to one that will help its every day low prices message hit home in a market currently mired in a price war. Walking into Asda’s Leeds head office feels exactly like walking into an Asda superstore. It is the living embodiment of the brand, with product promotions that mirror those in-store running within its atrium so that the 2,500 staff in the building are in touch with what customers are experiencing. It is this brand personality that chief marketing officer Stephen Smith wants to capture better in the supermarket’s advertising and marketing communications.This week, the company announced a review of its UK advertising account, held by Saatchi & Saatchi since 2009.Smith, a native New Yorker and former ad man, arrived in Leeds to take up the role of chief marketing officer a year ago, his career having taken him from East Coast USA to Leeds via Belgium and most recently China. He joined Asda from parent group Walmart’s China business.Asda – the UK’s second largest supermarket behind Tesco with a market share of 16.9 per cent versus Tesco’s 30.5 per cent – is entering a new era. All its senior executive board are new to their roles, having joined in the past year. This, says Smith, provides an opportunity for a fresh look at the business from a newcomer’s perspective.Like its parent Walmart, Asda is a retailer staunchly dedicated to offering customers every day low prices (EDLP) rather than following the traditional high-low pricing structure found elsewhere in the grocery market. It is the commitment to EDLP that drives everything.Asda was the first supermarket to offer a price promise with its Asda Price Guarantee in 2010, promising to…