Brand strategies of Western MNCs as drivers of globalization in Central and Eastern Europe

Abstract

Purpose The purpose of this paper is to explore how selected fast‐moving consumer goods markets in Central and Eastern Europe (CEE) have developed since the opening of CEE and what market structures have emerged since then. Particular attention is paid to the role of Western multinational corporations (MNCs) as drivers of globalization in this market‐reshaping process. Design/methodology/approach Based on household panel data the dissemination of international brands is analyzed in four product categories and four countries of the region. In addition, the question of whether the level of economic development of countries or the product character has an impact on the penetration levels of international brand is examined. Findings The outcomes of this retrospective study furnish evidence for the globalization of fast‐moving consumer goods markets in CEE. Although the level of diffusion of international brands varies by product category and country, the strong influence of Western MNCs in the shaping of market structures can be documented. The findings also mirror the predominantly‐employed marketing and brand strategies of foreign MNCs in CEE, namely internationally‐integrated as well as multi‐tier brand strategies. Research limitations/implications The data provides only a snapshot of the situation in selected consumer goods markets in the region. In order to obtain a fuller picture of the extent of market globalization, the market share of international brands should be complemented by additional data on purchase and usage behavior. Originality/value The paper contributes to the current discussion of the market globalization thesis.

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