Adapting to local conditions

According to an analysis prepared by the Budapest Chamber of Commerce and industry (BKIK) last year, the general marketing of multinational companies is prevalent in Hungary. Advertisements lack local features and have nothing in common with local consumers. Big multinationals do not make any effort to map local consumer attitudes and preferences. Contrary to the above findings, we not only see “local” versions among ads made for multinationals, but also among products as well. According to Éda Pogány from Coca-Cola Magyarország, they have several products developed specifically for the Hungarian market, apart from NaturAqua. Fanta Vadmálna and Cappy Ice Fruit apple-pear are examples. There are also Hungarian Cappy flavours, like apricot, pear or peach. Ákos Perjés, sales and marketing director of Haribo Hungária Kft also emphasises the importance of flavours – There are significant differences in preferred flavours between countries. Local characteristics need to be taken into consideration, in order to be successful. – We have a number of international brands, but we also take local preferences into consideration and “shape” our products accordingly, when required – explains Petra Kovács, trade marketing director from Cadbury Magyarország. – Owing to the size of the market and the limited purchasing power, our local assortment is smaller – says Tibor Pauer, sales director of Pannon Frost Kft. ( Aviko Hollandia subsidiary). – Haribo is still a family business. The owner, dr. Hans Riegel, continues to participate actively in the day to day affairs of the company, which includes working out the marketing strategy. Launching new brands is the responsibility of local management – says Ákos Perjés. There is no general rule for determining whether a new product is to be launched earlier, later or at the same time in the local market as it is in other markets. For example, NESTEA Vitao functional teas were launched in Hungary simultaneously with their introduction in Western Europe, while Trident chewing gums were launched a bit later. Aviko products also appear somewhat later in Hungary than in Western Europe. The marketing strategy for specific Coca-Cola products is planned at the European level, using the brand strategy worked out in Atlanta. Coca-Cola uses global campaigns, placing great emphasis on online solutions. According to Ákos Perjés, they do not use mandatory international models. The marketing mix is determined by local management. The use of some colours and shapes is mandatory, but market-specific tools can also be used. Sampling is a very effective tool for Haribo. The intention of Cadbury is to create the same visual atmosphere everywhere, in order to achieve uniform positioning at global level. The brand image and target group is usually also the same everywhere. Trade marketing is the area where local initiatives are more frequently used. Aviko companies usually follow the regional marketing strategy in terms of assortment and marketing mix. No major marketing decisions are made at local level. However, there are significant differences between markets in the communicational tools used.