Business strategies of companies and local production systems in Bulgarian dairy industry

Rozdział z: Functioning of the Local Production Systems in Central and Eastern European Countries and Siberia. Case Studies and Comparative Studies, ed. Mariusz E. Sokołowicz.The following paper examines the issues related to product-market business strategies. They are considered in the case of nonbusiness organizations and local production systems (LPS), which operate in the sector of milk and dairy products in Bulgaria. For the purpose of estimating the intensity of competition the number of competitors was computated, including these which are of paramount importance for the industry. The paper outlines some basic types of LPS within the industry. It also disscusses the assertion that a presence of enhanced vertical integration is identified within the sector, where the producers of milk and dairy products have a leading role. On this basis, the product market business strategies for the development of manufacturing companies and for the LPS as a whole appear to play a key role in the sector.Monograph financed under a contract of execution of the international scientific project within 7th Framework Programme of the European Union, co-financed by Polish Ministry of Science and Higher Education (title: “Functioning of the Local Production Systems in the Conditions of Economic Crisis (Comparative Analysis and Benchmarking for the EU and Beyond”)). Monografia sfinansowana w oparciu o umowę o wykonanie projektu między narodowego w ramach 7. Programu Ramowego UE, współfinansowanego ze środków Ministerstwa Nauki i Szkolnictwa Wyższego (tytuł projektu: „Funkcjonowanie lokalnych systemów produkcyjnych w warunkach kryzysu gospodarczego (analiza porównawcza i benchmarking w wybranych krajach UE oraz krajach trzecich”))

Selection Listing Decisions: New Product Adoption of Food Retailers

Retail selection policy determines the competitiveness of retailers. This is even truer of the bustling food retail market, thus assortment determination is crucial in grounding profitability. This paper describes an analysis of new product listing decisions to provide a tool-kit for food-retailers and ideas for producers in this domain. The research applies in-depth interviews among the largest and some smaller international and domestic retailers in Hungary to explore the characteristics of their listing decisions. To examine the interviews, content analysis and informed grounded theory methodology are applied. The results include a novel theoretical and practical framework for new product adoption, while two main innovation-related attributes are explored: profit as seen from a global perspective by new arrivals that accept losses on certain products to reach other company targets, and the needs-based perspective which creates more a complex approach to product selection according to customer needs.The paper first presents an analysis of the secondary literature relating to new product listing and conceptualises the related factors. It then investigates food retailers’ new product adoption decisions in Hungary, emphasising the related strategies. Finally, a model is presented to describe the explored preferences

A new era in retail:Private-label production by national-brand manufacturers and premium-quality private labels

Private labels have witnessed considerable growth in grocery retailing. While existing academic studies have provided valuable insights concerning the evolution of private labels, several issues remain largely unexplored. First, in the face of these large private-label volumes, private-label production opportunities arise. Due to increased private-label competition, national-brand manufacturers increasingly pursue a dual-branding strategy and engage in private-label production next to their national-brand activities. In chapter two of this dissertation, a major motivation for national-brand manufacturers to engage in private-label production, namely whether it creates retailer goodwill, is investigated. It shows that private-label production is indeed rewarded: national-brand manufacturers involved in private-label production for a discounter have a higher likelihood of obtaining national-brand shelf presence at that discounter. The third chapter focuses on one of the main reasons why retailers push private labels, i.e. because they generate high margins, and considers how a retailer’s private-label margins vary within categories. It demonstrates that a retailer’s private-label margins depend on the nature of the private-label supplier-retailer relationship, that they differ across quality tiers and package sizes, and that they are affected by a supplier’s extent of national-brand focus next to its private-label production for the retailer. Finally, this dissertation concentrates on the recent premium private-label trend. Even though premium private labels are seen as “one of the hottest trends in retailing,” retailers are selective in picking their battles with top-quality national brands and do not feel the need to extend their standard private label with a premium private label in every category. The fourth chapter provides insight into why retailers offer premium private labels in some categories, but not in others. The research presented in this dissertation is among the first to empirically investigate the phenomenon of private-label production, and to shed light on the recent trend of premium private labels

Think Local-Act Local: Is It Time to Slow Down the Accelerated Move to Global Marketing?

In view of the accelerated move of great corporations towards global marketing, the strategic changes of such companies raise interesting questions. Is marketing globalization reaching its limits after years of implementation? Is it time for companies to rethink their strategies and move back, like Coca-Cola, to a multi-domestic marketing approach?Global Marketing, Multi-Domestic Marketing Approach, Brand Equity, Drawbacks of Marketing Globalization, Coca-Cola