Korotetsky, R.

Mohylova, A.

English

Scientific hub Dnipro University of Technology

81sales promotion have the most effective influence on the final consumer and theacceptance of the decisions to buy.General conclusions of this research are:1) special calculations are promoting the best product category (eg at theend of a trade row);2) attracting buyers helps for promotion of a particular brands, increasesawareness of customers contributes to their loyal respect to the company (for thispractice seminars, the recommendations sempinhy, brand communication withconsumers outside outlets and setting up feedback from customers);3) The recommendations of the shop floor workers usually have a hugeaffect on the buyers choice (they have to be well aware of all categories of goods);4) the least effective way to promote the outlet is price stimulation(although these methods will always be influential for those consumers who find thatthey "spoil" producers).Korotetsky R.Mohylova A., research superviserOles Honchar Dnipropetrovsk National UniversityFEATURES OF LUXURY GOODS MARKETKey words: goods, luxury, market, segment, brand, featuresLuxury segment is a segment of granting great pleasure not just from use ofgoods and service, but also from everything that is connected with luxury goods fromthe purchase process till possession, statuses, delight, admiration, pleasure fromgeniuses developer’s work – till producer skills embodied in the product. The luxurysegment can be described as something “over premium class”. The basic rule ofluxury segment is appliances to luxury segment that should sustain a positive brandimage of its owner in specific range of persons. In addition to that the authority ofgoods owner should be a great advertising for luxury goods. Besides functionalusefulness, “luxury” goods and the services bring respect to its owner, determine hisstatus. “Luxury” consumer is a big man, most likely – influential, in manner oftenexacting and whimsical.As most of companies - manufacturers of luxury goods are in Europe, USA andChina / Hong Kong, the geographical analysis was compiled based on theirmembership to a certain country. Companies are distributed over the countries on thebasis of location of the main offices which not always coincides with the main placeof implementation of commercial activity. Despite the fact that sales of manyparticipants of the rating are heavily concentrated in other regions, all companiesreflect unconditional 100%  sales level in the reporting at the place of registration of82head office.Table 1Country Number of thecompaniesAverage size of thecompany (onemillion US dollars)Group share in thegeneral ratingGroup share in totalsales of 100participants of ratingChina/Hong Kong 7 3 455 7,0% 11,3%France 11 4 513 11,0% 23,2%Italy 29 1 222 29,0% 16,5%Spain 5 637 5,0% 1,5%Switzerland 11 2 882 11,0% 14,8%Great Britain 6 980 6,0% 2,7%USA 15 2 927 15,0% 20,5%Other countries 16 1 268 16,0% 9,5%100 participants ofrating 100 2 142 100,0% 100,0%The leading manufactures of luxury goods can be divided not only region-wisebut also by goods categories. For this analysis we have allocated five groups ofluxury goods:Table 2Product groups Number ofcompaniesaverage size of thecompany (mill USdollars)Group share in thegeneral ratingGroup share in totalsales of 100participants of ratingClothes and footwear 36 1 095 36,0% 18,4%Bags and accessories 12 1 311 12,0% 7,3%Cosmetics andperfumery 11 3 126 11,0% 16,1%Jewelry and watches 31 1 818 31,0% 26,3%Other classes ofgoods 10 6 832 10,0% 31,9%100 participants ofrating 100 2 142 100,0% 100,0%The company treats one of the first four groups if share in percentage terms ofvolume of its sales is the share of this group of luxury goods. The group of “Otherclasses of goods” are those companies which considerable shares of sales fall on twoand more groups of goods.Not only the companies which are engaged in realization of strategy of mergesand absorption, but also investing public are going to continue investigating ofmarkets in search of brands with a potential in the world market helping them toincrease product range, to improve operational management, to expand networks ofsale and to use possibilities of the international growth, allowing them to come to anew round of development and to pass to the following stage of aggressive growth.At the same time key players of the market are continuing to absorb thecompanies delivering quality components for production of production andprofessional experts for ensuring availability and quality of raw materials. On theother side of a chain of value creation companies will also continue to strengthencontrol implementation on phase of product, acquiring joint business or othernetworks of sales channels, trying to obtain strengthening of positions of brands inthe foreign markets. However an opportunity to reduce the establishment or to83minimize the risk connected with logistic system isn't the main driving power of suchvertical absorption. Exercising control over an increasing number of links of a chainof value creation, the companies will be able to operate more carefully and moreeffectively the brand in which creation they have put so many forces and time.Kovalchuk E.Koval S., research superviserNational University of Water and Environmental EngineeringTHE ROLE AND PLACE OF SOCIAL MARKETING IN SOLVINGPROBLEMS OF UNPROTECTED GROUPS OF PEOPLE DURING THEECONOMIC CRISISKey words: social politics, social marketing, social products, reforms, socialwarranties, state, social standards.In the economic transformation the main directions of state social policy shouldbe  focused  on improving conditions for the growth of incomes, effective use oflabor potential, strengthening national gene pool, implementation of these itemsprovides economic progress and social stability. The main idea of social warranties isto provide such level of live, which would be not lower than the specified norms. Anda large role is given to the social marketing as direction, using marketing tools toimprove the lives of both,as a separate people and  as society in a whole.Also we should pay attention to the social problems that still remain unsolvedduring the reforms. An important role is given to social guarantees, which in financialterms is a system of relations between the state and the person in the distribution ofavailable resources and satisfaction of the main needs, that promote the formation ofthe individual in society. Effectiveness of economic development should be not lowerthan the  social parameters which makes the contribution  to improving the lives ofthe population. For  realization of  benefits , we should provide the cooperation ofsuch factors:1. The redistribution of incomes in favor  of unprotected persons.2.  Optimal impact on the distribution of  production and company profits.3.  Partial refusal from  use of personal goods for life in special circumstances(Insurance)In these conditions the level of real consumption of benefits of social protectionwill increase, that in turn will affect the structure and dynamics of  nationalproduction growth.To solve social problems, we must create the conditions for economic growth.Main and the most important role in solving economics problems plays socialmarketing, which deals with three issues: belief  (for example, that drug use isdangerous) social practice(motivate to stop using drugs) and socialproducts(improving the health of the nation ).Only effective investment strategy as important part of financial strategy of thecountry could solve this problem. [2, р. 286]. The development of an effective socialsecurity system requires a real increase in social spending and compliance with social

FEATURES OF LUXURY GOODS MARKET

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FEATURES OF LUXURY GOODS MARKET

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