Robert Glasgow- Understanding Affiliate markets in Europe
French companies in budapest
1. FRENCH COMPANIES IN HUNGARY:
HOW TO ADAPT THE MARKETING APPROACH?
Oral presentation September 2nd , 2010 Sarah Pasturel
2. SUMMARY
French presence in Hungary
Marketing methods
French image in Hungary
2
THE HUNGARIAN CASE
Legislation
Communication tools
Consumption behaviors
3. French presence in Hungary
French business began in the 90’s
(energy and telecommunications
mainly)
Service sector expension
Foreign investors are essential to the
local economy
2006
400 french companies
in Hungary
60000 employees
3
4. Labeling and brand strategy
Question of cost
According to the situation:
typical french product or
international one ?
Worldwide or local reasonning?
Basic information
Sanitary and nutritional
information
Promotional aspect
4
5. Marketing methods
Globalization drivers:
- The market
- The costs
- The government
- The competitors
Pressures for global
efficience
Global strategy Transnational strategy
Export strategy Multi-domestic strategy
Pressures for local responsiveness
5
6. Four possibilities in Hungary
International marketing:
- Face conflict
- Strong power of negotiation
Global marketing
strategy
Same tactics Pure global
Adapted to local tactics Global
Local marketing
strategy
(by region or country)
Global strategic
variables mix
Glocal
Specific strategy and
tactics
Pure local
6
7. French image
According to the sectors, french origin
have a positive effect
L’Oréal, Bourgeois, Yves Rocher,
L’Occitanne, Danone
Renault, Citroen, Peugeot
Hungary is a crossroad of Central
Europe: international market with a
strong local comsumption
Positive
effect
Cosmetics, food
and clothes
Negative
effect
Car sector
7
8. Opinion survey
From 0 to 5 for french product’s popularity in Hungary:
- 44% gave 3
- 33,3% gave 2
Young costumers,
especially women, are
sensitives to french
brands among luxe and
fashion sector
8
10. GAP BETWEEN ACTUAL FRENCH IMAGE AND TRADITIONAL IDEA OF
PRESTIGE AND BEAUTY ABOUT FRENCH CULTURE
Negative stereotypes about
french hostility
Recente debates about the
football world cup
French image in medias
(politic)
Prestige
Beauty
Quality
Romanticism
French image
Traditional idea of French
culture
10
12. Legislation
Since 2003, Hungary leads a volontary
politic to attract foreigner investors
French investment increased of 10%
between 2004 and 2005
12
2 - Certification
1 - Licence
7- Account advices
3 – Personal informations
4– Electronic system
5- Signature by a lawyer
6- Lawyer advices
14. Communication tools
After the Fall of the Wall in 1989,
Hungary became the first country
of the Eastern Bloc to move away
from the Soviet Union
Hungary established an
independant media system
In 2010, the new leader Viktor
Orban (FIDESZ) wants to create a
media council 14
16. 16
Press
Crisis context
Broadcast
medias
98% have a TV
Internet
Growth of
721,4%
2000 -2009
Importance of the Roma community:
- Is represented by her own agencies (News, Press and
Informations)
Roma media Television, Roma radio, Roma print media
17. Consumption behaviors
17
0 0.5 1 1.5 2 2.5 3 3.5 4
Price logic
Marketing investment
French origin
Adapted marketing method
Four main arguments which fit to Hungarian expectations
18. 18
The chameleon The rational The impulsive
Hesitation between pleasure
and practical, basic and
value-added
Is not rational
Obvious contradictions (low
prices for food and expensive
brands for clothes)
Most easy position among
low and medium classes:
desire to belong to superior
groups by consumption ways
Care about prices
Not sensitive to advertising
and marketing tools
Consumption by necessity
even if he appreciate
shopping in big stores
Belong to low classes where
economic constraint is
maximal
Prefer volume than value,
illusion to access to the
consumption society
Buy by pleasure and look for
famous brands with high
notoriety
Sensitive to marketing
(fashion victim)
Typical profile: young, single
or couples without children.
Strong preference for national products
Good knowledge and awareness about foreigner products
Important to understand local culture and have an adapted communication