Marketing Strategies of Western Consumer Goods Firms in Central and Eastern Europe

Abstract

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.

Brand strategies of Western MNCs as drivers of globalization in Central and Eastern Europe

“…However, it has to be noted that the gap has been closing slowly but constantly during the last decade. Despite this favorable development, the low purchasing power has led to stagnant demand and, not surprisingly, price has become a decisive factor in buyer behavior (Shama, 1992;Schuh and Holzmüller, 2003).…”

“…Given these developments in the region it is not surprising to find authors that see clear advantages for an internationally more integrated and coordinated approach to the market (Kozminski and Yip, 2000;Schuh and Holzmüller, 2003). Schuh and Holzmüller (2003) distinguish three types of marketing and brand strategies that Western MNCs can choose from when operating in consumer goods markets of the region: the transfer of the Western home market strategy, the multi-tier product and brand strategy and the regional strategy. Transferring the strategy used in Western markets is typical for…”

Aktuelle Trends in der Marktbearbeitung österreichischer Unternehmen in Mittel- und Osteuropa

“…Dabei bieten Unternehmen parallel zum Stammangebot preisgüns-tigere Produktlinien unter eigenen Marken speziell für einen regionalen Markt an. Diese Strategie ist häufig, aber nicht nur, im Konsumgüterbereich (Waschmittel, Bier, Schokolade) anzutreffen und ermöglicht die Abdeckung der großen, preissensitiven Massenmärkte in Schwellenländern (Schuh und Holzmüller 2003 …”

Beer in the Ukraine: consumer choice criteria

“…17‐18) have observed “[…] virtually no information exists concerning the manner in which these consumers use brand name information and the value it possesses in the evaluation of products and services”. Moreover, some 15 years later, despite their increasing integration into the world economy, many of these countries still remain relatively unknown to most Western firms (Schuh, 2007, 2008). As Schuh and Holzmüller (2003, p. 176) note, despite an increasing focus on macroeconomic considerations, comparatively little attention has been paid to what they term the “ […] consumer revolution […]” This study is, therefore, designed to address this deficiency with regard to one country the Ukraine and the purchase of one product category‐beer.…”

“…Moreover, some 15 years later, despite their increasing integration into the world economy, many of these countries still remain relatively unknown to most Western firms (Schuh, 2007, 2008). As Schuh and Holzmüller (2003, p. 176) note, despite an increasing focus on macroeconomic considerations, comparatively little attention has been paid to what they term the “ […] consumer revolution […]” This study is, therefore, designed to address this deficiency with regard to one country the Ukraine and the purchase of one product category‐beer.…”