Rok Sunko: COO perception and Consumer ethnocentrism in ex-Yu


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COO perception and Consumer ethnocentrism in ex-Yu

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  • Rok Sunko: COO perception and Consumer ethnocentrism in ex-Yu

    1. 1. COO perception and Consumer ethnocentrism in ex-Yu Rok Sunko 29.10. 2008
    2. 2. Valicon Group timeline 2007 the year of
    3. 3. PGM – Product Group Manager <ul><li>Product Group Manager (PGM) is a syndicated marketing tool for brand and category management, including a broad insight in consumer profiles. </li></ul><ul><li>Single-source data on: </li></ul><ul><ul><li>brand and category strength (inside various consumer segments) </li></ul></ul><ul><ul><li>consumer habits </li></ul></ul><ul><li>The basis of PGM is a continuous syndicated marketing research </li></ul><ul><ul><li>field research </li></ul></ul><ul><ul><li>n=2000 / country – national representative </li></ul></ul><ul><li>Fully automatised software application </li></ul>Consumer Marketing strategy Asortima n Execution
    4. 4. Model used in PG M Usage Recognition Quantity Loyalty Price + How to rise profit? Consideration Experience How to achieve usage?
    5. 5. Population & consumer profiles <ul><ul><li>Socio-demography </li></ul></ul><ul><ul><ul><li>Sex </li></ul></ul></ul><ul><ul><ul><li>Age </li></ul></ul></ul><ul><ul><ul><li>Status </li></ul></ul></ul><ul><ul><ul><li>Education </li></ul></ul></ul><ul><ul><ul><li>Income </li></ul></ul></ul><ul><ul><li>Values&lifestyles </li></ul></ul><ul><ul><li>Free time </li></ul></ul><ul><ul><ul><li>Activities </li></ul></ul></ul><ul><ul><ul><li>Frequency </li></ul></ul></ul><ul><ul><li>Consumer habits </li></ul></ul><ul><ul><ul><li>Shopping habits </li></ul></ul></ul><ul><ul><ul><li>General FMCG consumption </li></ul></ul></ul><ul><ul><ul><li>Expenditures </li></ul></ul></ul><ul><ul><ul><li>Consumer indicators </li></ul></ul></ul><ul><ul><ul><li>Retail chain loyalty </li></ul></ul></ul><ul><ul><li>Eating habits </li></ul></ul><ul><ul><ul><li>Eating habits indicators </li></ul></ul></ul><ul><ul><li>Consumer Ethnocentrism </li></ul></ul><ul><ul><li>Country of origin </li></ul></ul>
    6. 6. The perception of ex-Yu brands within the region n=8.000, SLO, CRO, BiH and SR together. + - CRO BiH, SER
    7. 7. The perception of Euroregional brands in ex-Yu RS (&Republika Srpska) n=8.000, SLO, CRO, BiH and SR together. +
    8. 8. The perception of ex-Yu brands within Slovenia n=2.000, Slovenia
    9. 9. Slovenians highly value quality of domestic brands n=2.000, Slovenia
    10. 10. So what ? <ul><li>Slovene and Croatian brands have positive perception in the ex-Yu region </li></ul><ul><ul><li>Croatia has a relatively uniform perception Croatian brands also relatively equally successful function in all ex-Yu countries </li></ul></ul><ul><ul><li>Slovenia has very positive perception in quality (!) and being worth the money, but is perceived expensive (not as “out-of-the ex-Yu” region) </li></ul></ul><ul><ul><li>Slovenia has a very negative perception in CRO </li></ul></ul><ul><li>BiH has no COO image, there hardly are domestic BiH brands </li></ul><ul><li>Serbia is perceived as low quality but worth the price. Republika Srpska (northern part of BiH) is very similar to Serbia </li></ul><ul><li>The perception of Italian brands is biased in the direction of Prestigious, Attractive, Expensive (but not as expensive as Austrian) and quality </li></ul><ul><li>Austria is being perceived as high quality, but extremely expensive </li></ul>
    11. 11. Consumer ethnocentrism in the ex-Yu region C. Ethnocentric Not C. Ethnocentric
    12. 12. Does consumer ethnocentrism perception translates also in consumer behavior? 1. 2. 3. Milka (chocolate) Barcaffe (clasic coffee) Orbit (chewing gum) Not-Ethnocentric consumers 1. 2. 3. Barcaffe (clasic coffee) Milka (chocolate) Orbit (chewing gum) Ethnocentric consumers 4. 5. 6. 10. 7. 8. 9. Barilla (pasta) Laško (beer) Alpsko mleko (milk) Prill Aquafresh CocaCola 4. 5. 6. 7. 8. 9. 10. Alpsko mleko (milk) Laško (beer) Paloma (toilet papers) Aquafresh Barilla (pasta) 1001 cvet (tea) Paloma (tissues) Gillette (razors) 10 strongest FMCG brands in Slovenia in 2007 (n=2000) on: <ul><li>Consumer characteristics connected with Ethnoc. </li></ul><ul><li>Age </li></ul><ul><li>Education </li></ul><ul><li>Tradiotionailty </li></ul><ul><li>Income </li></ul>
    13. 13. But is the connection the same for all brands? High Premium product (perception of the Ethnocentric consumer) Mainstream product (perception of the Ethnocentric consumer) Not-Ethnocentric Consumer Ethnocentric Consumer Not-Ethnocentric Consumer Ethnocentric Consumer
    14. 14. Brands that generate added value are less affected by Consumer Ethnocentrism Barilla pasta Premium Perception of the position of some brands in Slovenia in 2007 (n=2000): Mainstream Budget High market share Low market share Illy coffee Jacobs coffee EGO yoghurt Becel Vitalinea yoghurt Mercator edible oil High impact of Ethno centrism Mercator kitchen towels Low impact of Ethno centrism
    15. 15. Is all this relevant ? ? Kosovo
    16. 16. Ex-Yugoslav region is ’’on the radarscope’’ but countries do differ BiH <ul><li>Very low consolidation of retail sector </li></ul><ul><li>Very important role of distributors </li></ul><ul><li>Abrupt end of domestic expansion, no real COO </li></ul>Croatia <ul><li>Moderate consolidation / fast development of the retail sector </li></ul><ul><li>Very successful transfer of experiences from other countries </li></ul>Slovenia <ul><li>Very high consolidation of the retail sector </li></ul><ul><li>Process of category ’’cleaning’’ </li></ul>Macedonia <ul><li>Extreme fragmentation of retail, high importance of foregin players </li></ul><ul><li>High instability </li></ul>Serbia <ul><li>Big potential of SR retailers </li></ul><ul><li>Focus on ‘’domestic’’ expansion </li></ul><ul><li>Big appetites for regional expansion/cooperation's </li></ul><ul><li>“ Jumping” development phases </li></ul>
    17. 17. BIH CROATIA SERBIA SLOVENIA 0 3 1 3* No. of domestic brands within ex-Yu region TOP 100 0 17 19 9 MK 0 0 Internatio. 13 55 TOP 20
    18. 18. Slovenia in the broader context of former Yugoslavia BiH <ul><li>4 mio people but in three different entities </li></ul><ul><li>Average gross income 554€ </li></ul><ul><li>Absence of domestic competition </li></ul>Hrvaška <ul><li>4,5 mio people </li></ul><ul><li>Average gross income 998€ </li></ul><ul><li>Very nationalistic attitude to domestic brands , which are succesfull overall the region </li></ul>Slovenia <ul><li>2 mio people </li></ul><ul><li>Average gross income 1370€ </li></ul><ul><li>Strong domestic competition with high qualitative standards </li></ul>Srbija <ul><li>7,5 mio people / but Serbian market starts in RS </li></ul><ul><li>Average gross income 560€ </li></ul>Comon... <ul><li>Fragmented market where strong distribution is very important </li></ul><ul><li>Growth potential, but... </li></ul>
    19. 19. Conclusions... <ul><li>.... </li></ul>Austria Slovenia multinationals Croatia Italy Serbia BIH Bulgaria <ul><li>attractive </li></ul><ul><li>prestigious </li></ul>Macedonia <ul><li>expensive </li></ul><ul><li>advertised </li></ul><ul><li>quality </li></ul><ul><li>poor execution </li></ul><ul><li>worth their money </li></ul><ul><li>rather don't buy them </li></ul>
    20. 20. Rok Sunko [email_address]