In a developing economy, competition is increasing. Major players are trying to expand their markets. At the same time, most corporations seek not just to take a place, but also to suppress competitors by all possible means and means (economic and political).
The largest corporations are located in countries that are dynamically developing and competently use available resources.
Market share is oneof the most important indicators of a company’s commercial efficiency.The greater the market share, the more successful the business. A high market share indicator allows you to set and influence the pricing of final or sold products. Most companies consider this to be their primary objective.
The largest corporation according to the latest data is a U.S. retailer with annual sales of $500 billion dollars
In Ukraine, the most profitable sector is the industrial sector, although several retailers also made it into the top ten most profitable companies with domestic capital.
With the instability in the country, many corporations are having to make new moves to engage consumers.
The basic steps in doing so are:
- investments (new cash injections from foreign investors);
- expansion of the product line;
- franchising;
- flexible pricing policy;
- change of packaging design;
- focus on the economy and premium segment;
- reorientation.
Product line expansion most often occurs using an umbrella organization structure. In this case, all brands nestle under the wing of the main company. The “children” can produce any product – a vivid example is Nestle. The main advantage of such an organization is a significant savings on marketing resources. This is due to the fact that the consumer is already familiar with the firm. A similar structure is used in franchising.
What helps large corporations not just to get stronger, but to increase their market share in Ukraine?
Advertising is the engine of commerce
Many consumers argue that TV, radio, Internet spots, flyers, billboards and other places where advertising can be seen do not affect them in any way. And, although airtime on television has reduced the time for advertising and many billboards are being dismantled, advertising remains the picture or slogan that we consumers remember. In a store, the first thing we notice is the product from an advertisement.
Vodafone (which before signing an agreement with the British telecommunications company Vodafone, was MTS Ukraine) presented a new original advertisement about full immersion in the virtual world of 3G.
Price is a way to market
One of the main factors contributing to market promotion is the pricing policy. It is most likely to be the main one. An example is the growth of the household chemicals market, which was observed only due to price increases, while sales volumes are falling. Economy segment chemistry became popular among consumers. Unfortunately, this happened not due to improved quality, but due to a decrease in the purchasing power of the population.
The main company is Procter & Gamble, which today not only supplies all types of household chemicals, but also adjusts to the financial capabilities of consumers, producing budget means for laundry, dishwashing, soap. “Henkel-Ukraine” – the secondplayer, producing another type of household chemicals – stain removersand special means for cleaning. Their products remain in demand due to the number of products presented. Another one the factor influencing the supply is fashion. The last two years have been a fashion for everything Ukrainian, which is also cheaper and in many cases better.
Emphasis on sustainability
The principle “you cannot save money on children”was adopted by such juice producer asVitmark-Ukraine, considering this segment to be the most promising. The emphasis on naturalness was also made by T.B. Fruit : focusing on the customer’s desire to buy quality products . Fruit: focusing on the buyer’s desire to purchase quality products for healthy eating.Sandora” company, owned by Pepsico, emphasizes not only quality, but also richness of choice, not forgetting about children. This American company also ownsSadochok juices.
According to the same principle, appealing to caring parents, the company “Dairy Alliance”under the brand “Yagotynske for children”released milk porridge. The company also renewed the Yagotynskeline and the line of hard cheeses.
Danone does not just focus on healthy lifestyles by holding soccer tournaments, but alsolaunches campaigns to keep children’s sporting spirit alive.
ObolonCorporation emphasizes environmentalfriendlinessand zero-waste production when producing beer: beer pellets are dried and pelletized, turning them into nutritious fodder for livestock.
70% of the baby food market is provided by RedHead Family Corporation. The first Smarty Family goat milk-based porridges and Smarty Family children’s mineral water are a step on the path of in-house production. Previously, the company distributed such brands of baby food, children’s cosmetics, hygiene products, toys, furniture and accessories as Nestle, Hame, Similac, Bebi, Heinz, Nanny, Sady Pridonnya, NUK, Baby-Nova, Avent, Bübchen, Muumi, Hasbro, Playmobil, Tolo, Siku, Lena, Bébécar, Trama, Pali. Multi-brand store “Daniel Boutique” is a union ofchildren’s fashion products in one place. The common solution for all of the above isAntoshka children’s goods supermarkets.
The way to increase market share: investment
Large investments and a large number of diversified products are the maintrump cards of the Swiss company Nestle, which produces not only sweets, instant coffee, mineral water, baby food, dairy products, but also animal feed and cosmetics. Another company – the American Mars – also produces animal feed, but we know it more thanks to Mars and Snickers candy bars. Ukrainian giants Roshen, Konti Group and AVK are the unchanged leaders, producing sweet products for many years, which has made them popular and their products in demand.
Investment is one of the methods that help to increase productivity and thus market share.
“Myronivsky Hliboproduct”is the largest meat producer in Ukraine and this year, thanks to investments from an international financial company, has already expanded the Vinnytsia poultry farm and increased production volumes. MHL is known to consumers thanks to such trademarks as “Nasha Ryaba”, “Bashchinsky”, “Certified Angus”, “Foie Gras”.
Way to increase market share: expanding the scope of activities
S.Group Corporation from Dnipro demonstrates the versatility of production. Its trademarks “Macho”, “Semki”, “Kozatska Slava” and others provide us not only with chips, pistachios, seeds and breadcrumbs, but also with wet and table napkins, liquid soap, toilet paper and air fresheners.
In many cases, reorientation is an opportunity to stay in the market. An example is the agriculturalagrarian companyNibulon, which became interested inshipbuilding andnow plans to reviveriver passenger navigation on theDnieper and Southern Bug rivers.
Pan Kurchak‘s versatility helps to build its potential. The company is involved ingrain crops, livestock farming, mixed fodder production and produces its own sausage products. Livestock farming includes breeding young birds, raising poultry and pigs, and meat production. And last month the company launched a new goat farm.
Another example of reorientation is theElektron television plant, which has turned into a modern machine-building corporation producing trolleybuses, streetcars, equipment for public utilities, etc. But the company has not forgotten its origins and still produces televisions, but already liquid crystal. But the company has not forgotten its origins and still manufactures TV sets, but liquid crystal ones.
Expanding the product offering
Carlsberg Ukraine (right) occupies almost 30% of the beer market. The company owns 3 breweries that produce beverages for 18 brands. Among them are Baltika, Arsenal, Lvivske, Kvas Taras, Tuborg, Somersby, Zatecky Gus and others. Another plus for the company’s rating were several new products that found their connoisseurs: Seth&Riley’s Garage hard-drinks, Robert Doms Belgian beer, Kvas Taras Black and Somersby cider with pear juice.
Such a business shark as FozzyGroup(left), which owns not only self-service stores “Silpo” and “Fora“, but also pharmaceutical supermarkets “Bila Romashka“, mobile communication stores “Ringoo“, poultry farm “Varto“, bank “Vostok“, cannery “Nizhyn“, restaurants and other types of business, can be considered a big company that takes quantity.
Another example of a multi-brand company is “Nadiya”. Initially it was a large hotel with rooms, conference halls, restaurants. To attract customers, they created their ownchannel and food stores “Delikatesyu“, where they sell food products (fruits from their own garden, sausages and sweets).
Franchising
Franchising isnot only a way to start a business from scratch without much investment, but also a great method for a corporation to help a young talent and, at the same time, expand its market share. This is a privileged form of cooperation, in which one party owns a successful business (franchisor) allows an individual or legal entity (franchisee) to use its inventions, name, reputation. All important details of cooperation are prescribed in the franchise agreement.
Examples of companies selling their franchise were:
- Pitsa Celentano, New-York-Street-Pizza, MAFIA restaurant chain , Videnski Bakery, Fornetti;
- clothing and accessory companies Mehhh, MANGO, COLUMBIA, Arber, Nike, Savage;
- service and training companies FitCurves, Helen Doron and many others.
In lieu of conclusions
In order to stay in the market, to be in demand, it is necessary to know the mood of consumers. You should not be guided by the assumption that if there is supply, there will also be demand. In this case, you can lose more than gain. Large corporations that have been on the Ukrainian market for more than one year and know what exactly the buyers need, are able to quickly orient themselves and rebuild to meet their needs.
The driving force of trade is advertising. But it does not guarantee increased revenues. Advertising should not just excite the desire to buy a product for the first time, but to buy it again and in larger quantities. In this case, the task is not to present information, but to induce action. The overabundance of information has given rise to the notion of the first 5 seconds, during which the consumer clings to the information or not. This critical time is often used to present the main arguments that should attract attention. Thirsty? -Don’t let yourself dry up. ( Sprite
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