HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeBorjomi: Crisis in Russiaback to Marketing

Case Study

Borjomi: Crisis in Russia

16 pages

June 2006

Reference: IMD-5-0706

Borjomi is one of Russia’s oldest, best-known and well-loved mineral waters. After going through a steep decline at the end of the Soviet era, the brand was bought by Georgian Glass & Mineral Water (GGMW) in 1995. Two years later, GGMW hired Frenchman Jacques Fleury—he turned the company around, and in 2001 had restored Borjomi to its former glory. In 2002, GGMW was bought by venture capital firm, Salford. Together with Fleury, Salford partner, Vladimir Ashurov, led a further transformation of the company turning it from a local, almost family-run company into a professional corporate enterprise, and growing annual sales from $25 to $125 million, and from 54 to 366 million liters. This achievement did not go unnoticed, and in 2005 GGMW received two offers from multinationals. But Fleury and Ashurov believed there was still significant room for growth. They made an ambitious plan to grow Borjomi’s Russian revenues threefold in as many years. Just as they prepared to put their plan into action, Borjomi fell victim to the increasingly tense relations between Russia and its former satellites. In April 2006, Russia banned imports of Georgian mineral water, following an earlier ban on Georgian and Moldovan wines. With their growth plan in jeopardy, what options were open to Fleury and his team? Would Borjomi survive this threat to make yet another comeback in this its largest market.

Learning Objective

1) Crisis management & political risk in emerging markets; 2) Study brand development and growth options in an emerging market with strong traditions, by looking at issues such as: a) widely differing regional markets dominated by low-cost competitors; b) limits of brand extension. 3) Learn about the bottled water industry in Russia and the CIS.

Keywords

Water, Bottled Water, Retail, Retail Trade, Marketing, Brand Management, Packaged Water, Mineral Water

Settings

1997-2006

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Case Study

'Big Fix' at Starbucks: Will customers come back? The new CEO's first year

In September 2024, Starbucks' then-CEO was abruptly fired after 17 months in the role; the decision followed three quarterly drops in consumer traffic and declining operating revenues. The board then turned to Brian Niccol, a veteran fast-food com...

Strategy Marketing Leadership

By Kamran Kashani and Nancy Lane

Case Study

Rustomjee Group: Positioning for a new market segment (A) (Paper version)

Founded in 1996, Rustomjee Group real estate developers has developed into a notable player and a well-known brand in the Mumbai Metropolitan Region (MMR). The case examines two flagship concepts – “Childhoods Available” and “My Spaces” – and shed...

Marketing

By Goutam N. Challagalla and Athanasios Kondis

Case Study

Rustomjee Group: Positioning for a new market segment (B) (Paper version)

Marketing

By Goutam N. Challagalla and Athanasios Kondis

Case Study

Hilti Fleet Management: Driving a global transformation

Strategy Marketing Business Transformation Leadership

By Stefan Michel

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

Luxury Marketing Strategy

By Stéphane J. G. Girod and Martin Králik

Case Study

Has Nike lost its stride?

Set in 2024, the case describes the trajectory of Nike's success and how it had recently lost its way. The company was experiencing its worst slump in more than 10 years. Since 2020, CEO Donahoe oversaw a significant shift away from wholesale, wit...

Marketing Digital Strategy

The Case Centre Awards and Competitions 2026 - Outstanding Case Writer Award; 2025 John Molson MBA International Case Writing Competition Award Winner

By Ivy Buche and Goutam N. Challagalla

Case Study

Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption?

In 2024, the management of Aluminium Cyclo Enterprises (ACE), was concerned that the European Union (EU) export rules for ferrous and non-ferrous scrap were becoming more restrictive. Not just the EU, but close to 43 countries had restricted the e...

Marketing

By Dominique Turpin, Anamaya Narain Singh, Cyril Darlong Diengdoh and Sandeep Puri

Article

Quiz: What are the pitfalls of marketing to women?

Women make more than 80% of purchasing decisions, but most brands struggle to reach, engage, and convert female customers. Do this short quiz to test your knowledge of marketing to women, and read on for tips on avoiding the pitfalls.

Marketing

By Jenny Darroch

in I by IMD Brain Circuits

15 April 2025

Article

China’s pharmaceutical sector: innovation meets demographic-driven demand

Explore how innovation, R&D, and policy reforms are reshaping China’s pharmaceutical sector amid rising healthcare demand and demographic shifts.

China Decision Making Global Business Innovation Marketing

By Mark Greeven and Sophie Liu

in I by IMD

'Big Fix' at Starbucks: Will customers come back? The new CEO's first year

By Kamran Kashani and Nancy Lane
Case reference: IMD-2687 ©2026

Summary

Reference IMD-2687

Organization Starbucks

Industry Consumer Goods, Coffee

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Marketing

Leadership

Browse all topics

Rustomjee Group: Positioning for a new market segment (A) (Paper version)

By Goutam N. Challagalla and Athanasios Kondis
Case reference: IMD-7-1830-P ©2016

Summary

Reference IMD-7-1830-P

Organization Rustomjee Group

Industry Services, Real Estate;Construction and Engineering

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Marketing

Browse all topics

Rustomjee Group: Positioning for a new market segment (B) (Paper version)

By Goutam N. Challagalla and Athanasios Kondis
Case reference: IMD-7-1831-P ©2016

Summary

Reference IMD-7-1831-P

Organization Rustomjee Group

Industry Services, Real Estate;Construction and Engineering

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Marketing

Browse all topics

Hilti Fleet Management: Driving a global transformation

By Stefan Michel
Case reference: IMD-2697 ©2025

Summary

The case describes Hilti's transformation from a premium tool maker to a solution provider in commercial construction, while keeping its innovation leadership. Confronting industry pain points such as lost tools, downtime, safety risks and thin margins, Hilti created Fleet Management FM. This subscription bundles NURON tools, repairs, loaners, theft coverage, and Hilti's ON!Track asset management system into predictable monthly payments. IoT connectivity delivers real-time insights on utilization, battery health and maintenance. Moving towards end-to-end optimization E2E, FM digitally connects warehouses, vans and administrative processes, unlocking measurable productivity and margin improvement. FM also operationalizes circularity: productivity analyses right-size tool parks often by 2030 fewer assets, tools are refurbished or donated for a second life, and non-usable materials are recycled via a global network of local partners. The case illustrates how business model innovations with global coverage necessitate fundamental organizational transformations that can take many years. It allows students to develop concise, concrete and convincing value propositions in a B2B market environment. It also facilitates a discussion on solution readiness offering, supplier, contract, and customer and the identification of a sustainable competitive advantage based on the VRIO framework.

Reference IMD-2697

Organization Hilti

Industry Manufacturing, Machinery

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Marketing

Business Transformation

Leadership

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (B) (Video case)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2696 ©2025

Summary

This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The video B case features interviews with three Vanzetti Engineering executives: the marketing director, the CEO and owner and the chief commercial officer. With the shrinking of the automobile industry, the company has had to reposition itself in other industrial sectors where it is significantly smaller than the customers. Vanzetti Engineering embraced some of the codes of luxury branding according to what suited it and ignored others. The company discovered that although it was focused mostly on creating functional value, it had to dwell much more on emotional and societal value creation. The process of brand elevation required a complete cultural transformation, and one of the lessons from the case is that a brand is not a slogan but a way of being and of delivering value.

Reference IMD-2696

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

The power of brand-led differentiation: What Vanzetti Engineering learned from luxury brands (A)

By Stéphane J. G. Girod and Martin Králik
Case reference: IMD-2688 ©2025

Summary

Survey after survey shows that executives think their business is in danger of being commoditized. This means their company is not able to differentiate sufficiently to command higher market prices and profits. Luxury brands, by contrast, are the opposite of commodity. Their whole approach to branding is based on desirability. This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The written A case gives a short background on Vanzetti Engineering, which is facing intensifying competition in an evolving marketplace, and launches the first question for discussion.

Reference IMD-2688

Organization Vanzetti Engineering

Industry Construction and Engineering;Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Luxury

Marketing

Strategy

Browse all topics

Has Nike lost its stride?

By Ivy Buche and Goutam N. Challagalla
Case reference: IMD-7-2598 ©2025

Summary

The Case Centre Awards and Competitions 2026 - Outstanding Case Writer Award; 2025 John Molson MBA International Case Writing Competition Award Winner

Reference IMD-7-2598

Organization Nike

Industry Consumer Goods, Footwear

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Marketing

Digital

Strategy

Browse all topics

Aluminium Cyclo Enterprises Malaysia: How to manage a supply chain disruption?