The winners of the national award BRAND OF THE YEAR/EFFIE 2005 were announced at a ceremony at the Krasnaya Presnya Exhibition Center on 26 October, hosted by RBC.

It seems the Russian society is gradually recovering of one of its chronic diseases - lack of openness and lack of desire for self expression. A few years ago Russian corporations shunned any public events, including business awards and contests. At best they were seen as something like fashion shows or 'vanity fairs.' Fortunately, this time has long passed. Russian business develops rapidly, and rules that governed it a few years ago are now hopelessly obsolete. With competition on the domestic market getting tougher, Russian companies adopt international forms of capital management and pay more attention to their business reputation, building up their image capital.

The need to participate in popular business awards is becoming increasingly obvious. It is not just fashionable and prestigious but it also became an important element of corporate marketing strategy.

For companies, moving to a new level often directly depends on participation in such events. We can see this from the growing popularity of various ratings and contests, with numbers of participants rising by the year.

The BRAND OF THE YEAR/EFFIE is the most prestigious branding award in Russia. Such awards are kind of litmus test for corporate stability, effectiveness of marketing strategy and project creativity. The winners of the 2005 national award were announced at the end of October. The representatives of Russia's leading companies who took part in the contest with their best projects gathered for the ceremony.

There was a round platform at the center of the hall and the award ceremony was staged there. It began with a short but colorful theatrical show based on the blockbuster The Lord of the Rings. A sword battle was unfolding on the stage. Orcs, symbolizing the savage capitalism of the 1990s, were fighting people wearing business attires. Apparently, victory was secured for the latter, who personified the triumph of new ideas in business, the triumph of a brand. This was an introduction to unusual awards prepared for the winners - large golden, silver and bronze rings with the letter "E" (standing for EFFIE, the world's most prestigious award for effective marketing communications, which BRAND OF THE YEAR joined in 2001). After the stage battle, the award ceremony began. It was hosted by the stars of the My Fair Nurse TV series, Olga Prokofyeva and Boris Smolkin.

"As you all understand, there is no brand without a legend," RBC General Director Yuri Rovensky told the audience. "With our grand ceremony we tried to stress this fundamental principle of brand building. Effective advertising not just sells products. It creates dream and lifestyle," he said.

BRAND OF THE YEAR itself has a status of a high-quality brand. The contest has moved to a new level, becoming more prestigious. The number of applications rose to a record-high of 270. In view of this the BRAND OF THE YEAR/EFFIE 2005 jury decided to introduce new award categories, raising their number to 26. Yelena Biryukova, Chairman of the steering committee, said the rising number of applicants confirmed the need for the award: the market is growing, together with the number of companies operating on it, competition is growing, and the level of projects is improving, as well as the effectiveness of marketing solutions.

The prestige of the BRAND OF THE YEAR/EFFIE 2005 is confirmed by the participation of such well-known brands as Orbit, Uslada, Narzan, Arsenalnoye, Duracell, BMW, Samsung, Shatura, Garant, Mirinda, Aeroflot, Gazprom, Evroset, CATS, and Glamour. In all, eighty brands setting the tone on the market in various industries. Grand prix was awarded to Sitronics ("New Name"), BeeLine ("Change of Image") and Samsung LC TV sets ("Reputation and Confidence"). "A national award in marketing and advertising is a unique tool. It creates field for competition, and we can see that Russian corporate projects are capable of competing with foreign projects. And I think participation in the BRAND OF THE YEAR, which is part of the EFFIE global award system, is a unique chance to estimate one's forces and draw conclusions for the near future. We are happy that the prestige of the award rises by the year," Rovensky said.

Representatives of companies-participants stressed the important role of the contest in building corporate culture. "BRAND OF THE YEAR sets certain limits. Participation in it, whatever the result, makes companies mobilize and regroup their forces," said David Chikvashvili, Commercial Director of the Borodin Meat House.

Igor Kasyanov, Director for Development at the JWT/RAVI CIS advertising group, noted that "this award allows us to learn from each other because the strongest win." And Irina Zelenkova, Deputy General Director for Advertising and PR at FinExpertiza, believes that "of all kinks of products, Russians prefer brands, and brand building and promotion provides a powerful stimulus for development."

Yevgeny Chichvarkin, Chairman of the Board of Directors of Evroset, companies participating in THE BRAND OF THE YEAR boost loyalty to their brands. "People give their money to companies they trust and know well. BRAND OF THE YEAR is one of the most prestigious awards. It raises companies' recognition. We want the name of our company to become a household name. We are sure that we will be identified better. And not just by consumers but also by our partners, suppliers and creditor…"

"This award is a necessary encouragement confirming the correctness of the chosen path and strategy," said Maxim Teterevenkov, the head of the advertising department at the PANTOFF Trading House LLC. Yulia Goshko, manager for corporate matters at Unilever CIS, believes that "to win the BRAND OF THE YEAR award means to get public recognition and objective assessment from professionals, including from rivals. Besides, winners get good motivation for further work."

For experts, BRAND OF THE YEAR became a good opportunity to assess the situation on the Russian market as a whole and in some of its segments.

"The market has become more segmented and much more sensitive to the needs of specific buyers," says Alexei Andreyev, a member of the jury and Director of Depot WPF. "And we can see that a correct corporate strategy is a condition of further development. Certainly, it is impossible to outdo global giant brands in terms of sales, but many Russian companies compete with them in terms of marketing strategy," he said. "All advantages of integrated marketing communications are now being used widely in Russia. ATL tools are being complemented by BTL campaigns. Promotion actions and merchandizing fell out of fashion. A very serious approach is being taken to market research," said Anastasia Kochetkova, assistant professor at the Moscow State Institute of International Relations (MGIMO).