Moscow Times
August 4, 2008
Advertising Campaign Cashes In on Medvedev
By Svetlana Osadchuk
The bold letters on the billboards read: www.medvedev.ru.
Scrutiny, however, reveals that the billboards are not promoting the new president but a clinic offering "The Best Health in Russia."
The ad campaign makes Igor Medvedev, the head of the Igor Medvedev International Health Care Center, one of the first businesspeople to tap into President Dmitry Medvedev's name to try to attract business. It signals the possible start of a new wave of copycat branding following the emergence of Putin-branded products during the popular presidency of Vladimir Putin.
Igor Medvedev said he saw nothing wrong with exploiting the president's name.
"It's not my fault that I am Medvedev as well," he said by telephone Friday. "And I cannot see any reason not to use this coincidence because people all over the world trust names the most."
He said he acquired the web address upon opening his clinic in 2003, back when Dmitry Medvedev was chairman of Gazprom and not yet linked with the government.
The clinic's street billboard campaign has brought in new clients, Igor Medvedev said. But he insisted that the new clients had visited because "first of all, we are known for good health care."
He did not say how many billboards were running his ads or how much he has invested in the campaign.
Using the president's name has proved to be a smart business decision in Russia, advertising executives said.
"This is an absolutely repayable move in a country where all the people are used to looking to the chief," said Sergei Tsaturyants, co-owner of SQ Media Advertising and a specialist in star branding.
Respect for the throne is in Russians' blood, he said, noting that all restaurants where Putin has eaten have hung plaques reading, "We hosted Putin."
"Medvedev is not a brand yet, but he has good potential," he said, adding that he did not mean wall clocks, posters or calendars but a serious brand entering the market, like the Putinka vodka.
The Kristall distillery started producing Putinka on Nov. 1, 2003, the third year of Putin's presidency, and now occupies third place in sales among all vodka brands in Russia, after Zelyonaya Marka and Five Lakes, according to the Center of Federal and Regional Alcohol Market Research.
"It would be next to impossible in any other civilized country to associate a strong alcoholic drink with a president's name," said Vadim Drobiz, the director of the center.
But in Russia, experts said, Putinka remains a kind of state symbol and will be popular for at least the next two years. It seems, however, that owners of the vodka brand are keeping a close eye on politics. After Putin became prime minister this May, the Promimpeks company, which owns the rights for Putinka, filed an application with the state patent office to register the trademark Putinka Ministerskaya.
Seven months ago, when Putin made it clear that Medvedev would be his successor, alcohol manufacturers started scrambling to register new trademarks using Medvedev. Inso Energia registered "Medvedka" and "Tsar-Medved," while the rights for "Medvedevka" belong to the LaTerma company, Vedomosti reported.
No vodka under these brand names has entered the market so far, however. Drobiz predicted that new Medvedev-linked brands could be launched in a year or two, after people gauge how Medvedev performs as president.
Calls to Medvedev's spokespeople for comment went unanswered Sunday.
Apart from Putin's strong personality and charisma, Drobiz said, the Kremlin did not mind Putinka exploiting the president's name because it essentially offered a new way to boost his popularity ahead of his re-election in 2004.
"There is no urgent political bid for a serious Medvedev brand name so far," he added.
Tsaturyants, the advertising executive, said the Medvedev brand name could find success on alcohol, some foods and cigarettes, but only if the products were affordable for the average buyer.
Some companies are not sure whether they want to go with Medvedev or Putin. One of them, the Kaufman Production Agency, has applied with the patent office to register the brands "Volodya" and "Medvedi," Vedomosti reported. There is a popular Russian fairy tale called "Masha and Medvedi."
"Even TV these days does not know for sure whom they have to film first Putin or Medvedev. No wonder that businesses are puzzled about it as well," Tsaturyants said.