Page 61 - Countertrade

The range of products was split into domestic and industrial. The domestic
items such as leather goods, stone-ware, wooden products and domestic
lamp shades, were sold directly to the retail trade and made a higher profit
than the industrial products such as street lamps. The enterprise retained
street lamps as a product because it expected its fortunes to revive in the
future.

Despite the uncertainties of the market product branding became an
issue. All products received a certificate for sale if they met a minimum
quality standard. Without the certificate they could not be sold. By 1995
the enterprise had obtained 36 certificates and was expecting to be
awarded a further 10 in the next year.

Physical distribution had been a problem. Ivan’s solution was for Revda to
have its own fleet of vehicles. It had 65 lorries and control of transport
costs - around 100,000 roubles per month. As part of the marketing effort
representatives of the enterprise attended trade fairs and exhibitions in
every region. Advertising was done through newspapers, radio and
television and by using the Register on Enterprise. The importance of
marketing to the success of all the VOS enterprises was by making 1995
the Year of Marketing. Ivan said:

“...we introduce new items but without an effective marketing
programme we will fail.”

The process of computerisation which could help marketing was slow.
There was computer equipment but it was underused. In marketing it was
mainly used for processing low grade work such as advertising support or
producing leaflets or labels and packaging art work.