Purpose -The purpose of this paper is to explore how selected fast-moving consumer goods markets in Central and Eastern Europe (CEE) have developed since the opening of CEE and what market structures have emerged since then. Particular attention is paid to the role of Western multinational corporations (MNCs) as drivers of globalization in this market-reshaping process. Design/methodology/approach -Based on household panel data the dissemination of international brands is analyzed in four product categories and four countries of the region. In addition, the question of whether the level of economic development of countries or the product character has an impact on the penetration levels of international brand is examined. Findings -The outcomes of this retrospective study furnish evidence for the globalization of fast-moving consumer goods markets in CEE. Although the level of diffusion of international brands varies by product category and country, the strong influence of Western MNCs in the shaping of market structures can be documented. The findings also mirror the predominantly-employed marketing and brand strategies of foreign MNCs in CEE, namely internationally-integrated as well as multi-tier brand strategies.Research limitations/implications -The data provides only a snapshot of the situation in selected consumer goods markets in the region. In order to obtain a fuller picture of the extent of market globalization, the market share of international brands should be complemented by additional data on purchase and usage behavior. Originality/value -The paper contributes to the current discussion of the market globalization thesis.
The rapid and often drastic changes in national business environments in the course of the transition from centrally planned to free market economies pose specific challenges to Western consumer goods firms in Central and Eastern Europe. Once lured by the huge market potential they are faced with a poorly developed marketing infrastructure, priceconscious and not very brand-loyal consumers, and intense competition. When designing their marketing strategies they have to find a balance between likely returns on investment and the risks involved. Building up a local presence in a stepwise manner, transferring marketing strategies from the West in a sensitive way and developing regional management structures seem to be effective approaches for Western firms in this region.
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