French companies in budapest

FRENCH COMPANIES IN HUNGARY: HOW TO ADAPT THE MARKETING APPROACH?

Oral presentation September 2nd , 2010 Sarah Pasturel

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SUMMARYFrench presence in HungaryMarketing methodsFrench image in Hungary

THE HUNGARIAN CASELegislationCommunication toolsConsumption behaviors

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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

2006400 french companies

in Hungary

60000 employees

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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

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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

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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

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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

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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

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Prestige

Quality

Modern

ity

Good communica

tion

Convenience

0%5%

10%15%20%25%30%35%40%45%50%

According to you, what is the main feature of French brand?

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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

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THE HUNGARIAN CASE

Legislation

Communication tools

Consumption behaviors

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Legislation

Since 2003, Hungary leads a volontary

politic to attract foreigner investors

French investment increased of 10%

between 2004 and 2005

2 - Certification

1 - Licence

7- Account advices

3 – Personal informations

4– Electronic system

5- Signature by a lawyer

6- Lawyer advices

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European norms

European Commitee for Standardization

In Hungary: the MSZT, the Hungarian

Standards Institution

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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

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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

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Consumption behaviors

Price logic

Marketing investment

French origin

Adapted marketing method

0 0.5 1 1.5 2 2.5 3 3.5 4

Four main arguments which fit to Hungarian expectations

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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

THANK YOU FOR YOUR ATTENTION !