For a long time, all CEE countries were considered as one entity, labeled the ‘Soviet Bloc’. All were inaccessible to Western marketing, and their political system was defined by Moscow. Rare visitors from the US or Western Europe were startled to see a grey world without advertising, poorly paved roads, and crumbling infrastructure. Economies were relying, or at least tried to, on heavy industry and inefficient state-run agriculture. This perception, as are most stereotypes, is a very long-lived one.
It is all too easy to see the CEE region as a whole and one lagging behind the developed world, now maybe without Russia. It is easy to overlook that most markets started to develop in their own way, reflecting the specific mentality, traditions and aspirations of individual societies. New countries were formed in place of the former Soviet Union, Yugoslavia, and Czechoslovakia; several countries joined the European Union and others are still waiting. Some, like Ukraine, may never become members. There are only two things that all these markets really share: strong economic growth (albeit interrupted here and there by a financial crisis) and a good share of communist-time nostalgia. You may know that France is different from Germany and both are different from Italy; but who can tell what makes Romania different from Hungary and from Poland?
Now, consider this:
- We speak different languages. Some are Slavonic, some are not (like Hungarian or Estonian)
- We have different traditions
- We practice different forms of Christianity
- The countries were shaped by different historical events
- Our cultural heritage is different
- We eat different foods
- We have different aspirations
- We even don’t all drink Coke!
One of the most comprehensive and consistent approaches to differences between markets has been developed by Geert Hofstede, now Professor Emeritus at the Maastricht University. The value of the Hofstede model is that it relates directly to marketing issues. The model is based on the five dimensions which were found to best represent differences between countries. It is best supplemented by looking at strong local brands and their icons, as well as comparing the best advertising campaigns to see differences in style and consumer values.
The Hofstede dimensions are:
Power Distance Index (PDI - it reflects the extent to which the less powerful members of organisations and institutions (like the family) accept and expect that power is distributed unequally.
Individualism (IDV) and its opposite, collectivism i.e., the degree to which individuals are integrated into groups.
Masculinity (MAS and its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society.
Uncertainty Avoidance Index (UAI) describes a society's acceptance of uncertain situations. High UAI indicates that people feel rather uncomfortable in situations that are novel, unknown, surprising, or different from usual and perceive them as threatening.
Among the CEE markets, Slovakia and Romania score very high on Power Distance. Therefore, power and social status are important values that are frequently represented in advertising. Wealthy people like to show their social position and the less successful ones accept this.
Slovakia is also high on masculinity but Romania is not – in the latter country, values like caring for other people and emotional relationship are highly appreciated. Romania is also very low on IDV (the same refers to Bulgaria) – it is really a ‘collective’ society, where people define themselves in relation to others. This strongly influences behaviour such as choice of clothing and attitudes towards cosmetics.
Among the CEE markets, Poland has the highest UAI score. This makes Polish consumers likely to respond to specific kinds of communication (problem -> solution). As consumers, they are more conservative than others.
Hungary is a society that values homogeneity – the PDI score is very low there. In Hungary, power and status are mistrusted.
The Czech Republic does not stand out on any of these dimensions but the striking observation is how different it is to Slovakia. This helps to understand why the two countries decided to divorce! Today, Czech society is more similar to Germany than to its other neighbors.
Last but not least, each CEE country has its own brand heritage. Some brands, such as the soft drink Kofola in the Czech Republic, are so strong and beloved that not Western corporation can beat them. Others have found new creative ways to win local consumers after being taken over (like Dacia in Romania, which was acquired bye Renault).
So what can a marketer do if she wants to win CEE consumers? Most of these markets are too small to create separate brands, products and different communication. One solution is to give your brand a local touch so that the brand is recognized in every individual society. You definitely have to run separate taste tests in every country if your product is food or drink. In some categories, however, a uniform approach works well (e.g., painkillers). As such, the advice is same as ever: study your consumers' behavior and attitudes, and try to understand their needs – do serious market research!
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For a long time, all CEE countries were considered as one entity, labeled the ‘Soviet Bloc’. All were inaccessible to Western marketing, and their political system was defined by Moscow. Rare visitors from the US or Western Europe were startled to see a grey world without advertising, poorly paved roads, and crumbling infrastructure. Economies...
