Demographics Gender
Women make up 51.4% of population, mostly in cities Average age of man: 33 years old Average age of woman 37 years old
Age Half of people in Poland under age 33. One third
under 19 Youth
Consumption oriented Brand label aware
Elders Traditional Prefer known and tested products
Income Average household income low: Poles that make
between $125-$250/mo is 78.7%
Geographic Poland’s total population is 38.7
million Largest city is Warsaw with
population of 1.6 million Next two largest cities are Lodz and
Krakow Unemployment is 17.8% Urban
More likely to spend money
Rural Have higher unemployment Man to Woman ratio more balanced
Product Size
Bottle size of competitor’s soda (Coke) is .33L~11 oz. Consume beverages in smaller sizes Size of refrigerator only 1.8 meters
Labeling It is required by law to have product description
somewhere on or inside the package. Must clearly state country of manufacturer
Name and address of producer Composition/Ingredients Net weight of contents Durability/Storage instructions
Product Nutritional value is required and must follow Polish standards
Energy value and proportion of nutrients must be in units per 100 grams or 100 milliliters.
Information on vitamins and minerals must be as a percentage of recommended daily allowance
Many women are on “diets” Coke is referred to as Coca-Cola Lite
Metric system used Prefer simple, self explanatory labels
Poles are impressed with quality of packaging when labels are thick and strong
Traditional labels are “stiff”
Product Companies have found that using English on packaging helps
give product additional prestige or value Language
Official language is Polish (98.7%) Packaging
Required to take measure in using recyclable materials Coke uses glass bottles with metal caps, while Hortex uses
plastic bottles with screw on caps Additives
Label must declare either aroma, natural, artificial or any combination
Same additive regulations as other EU countries, but can declare new additives. For example, neotame, a sweetener used only in Poland
Product
Color Black tea preferred. Coloring of teas is usually
dark Flavor
Ceylon, a blended tea is found to be most popular in the tea market
Tea drinkers are developing tastes for green and fruit teas, as well as spice imperial, ginger, and almond
Product Competition
Brands: There is much competition from local production and
exporters from the EU countries. They tend to prefer Polish products to imported goods.
Coke, PepsiCo, Tetley, Posti, and Dilmah (account for 70% of teabag market)
Private label products available at hypermarkets and supermarkets
50 brands of tea in the Polish market Other competing beverages
Black tea is the most popular hot tea: Assam Best, English Breakfast, Darjeeling First
Flush, Earl Grey Coffee is the most developed area of the hot drink
market with Kraft, Tchibo, Nestle, Sara Lee, and Elite Group
Hellena is one of the top soda and juice competitors Hortex is the leading fruit juice producer which is
recognized by 97% of population
Price Retail Price Polish currency is Zloty. Now after
joining EU, they have adopted the Euro Pricing is key to effective selling of a
U.S. product in Poland Flexible pricing in order to obtain
market penetration and gain product knowledge
Commercial Service in Warsaw says a common complaint is that U.S. prices are too high
Price more significant for women, people with secondary educations, rural consumers, and blue collar workers
Polish teas sell for about $6 for 200grams (8 oz box).
Price Young Poles in cities are less price sensitive
than older generations and rural Poles Urban areas have higher purchasing power
and are more willing to spend on consumer goods
Money Poland is a cash economy with little or no
credit access or checking accounts Can take 2-4 weeks to collect money on a
sale, so cash management services can make significant difference in business profitability
Placement Unilever in Poland
Products that are currently in Poland Domestos: household bleach Hellmann’s: #1 mayonnaise brand worldwide Dove: skin and beauty product Sunsilk: shampoo Cif: household cleaner Rama: margarine Knorr: food spices, bouillons, etc.
Parallels Polish lifestyle and how tea is incorporated
Tea houses similar to U.S. coffee houses (Starbucks) Tea viewed as a chance to break from daily routine of
life
Placement
Storage and Distribution Retail and wholesale market fragmented with
thousands of small companies. While they dominate the market, they have less than $1 million annual sales. Difficult to distribute to such a large amount of small companies.
45% Poles shop in small stores. Hypermarkets are on the rise, but still some customer resistance due to their large size.
Distributors manage entire logistics process from warehousing and transportation, in addition to dealing with retailers.
Placement Logistics Providers in Poland
ProLogis World’s largest developer and leaser of logistics facilities Located in central Poland, work for Unilever Created ProLogis Park Protrkow which is a large
distribution center for Unilever in Poland
Unilever Bestfoods Located in London, UK Leading suppliers of fast moving consumer goods They selected Power Europe to develop and manage a
new automated national distribution center at Kingswood Lakeside in Cannock, Staffordshire, which will handle Unilever’s Bestfood distribution requirements
Ready for distribution in September 2005
Placement Tibbett and Britten Group
International logistics specialist working under long-term contracts with retailers and manufacturers, especially in the food and beverage industry
Currently under contract with Unilever Maersk Logistics
State-of-the-art warehousing and distribution center in Mszczonow
Operates in more than 70 countries
Production Facilities in Poland Products in Europe:
Bydgoszcz- Responsible for home and personal care products in Europe
Kotowice- Responsible for Unilever Bestfoods in Europe
Placement
Transportation Road System
50% of roads are considered unsatisfactory and need immediate upgrading and 35% are poor
Weakest aspect of Poland’s infrastructure and a major handicap to business in economic development
Lack of adequate highways between major cities Rural roads are dangerous and difficult to travel on Toll Roads are being created in an effort to help the
current road system Possible product logistics company, Ryder System,
Inc. which provides logistics and transportation solutions in Poland
Placement Railways
Polish State Railways (PKP) High quality and interconnect with neighboring cities
such as Vienna, Prague, and Berlin. However they need substantial restructuring
For the future a mix of both railways and road ways are considered best prospect of growth for Poland
Warsaw relies on metro system Quantity Amounts
Poles buy in small amounts until know and trust product
Wait to see how product sells and if favorable then consumers will purchase in bigger bulk
Placement Channels of Distribution
Shipped from manufacturers to warehouses via air and seaport then shipped via roads or railways to local groceries or other means of sales
Traditional grocers are the largest and most popular retailers
Joint Ventures Very abundant in Poland In a typical joint venture, American companies
contribute capital and technology, while Polish companies contribute land, distribution channels, trained workers, and legal and business knowledge
Promotion Media Availability
Poland is very literate and college attendance continues to increase,
Print advertising has become a popular media source
Advertisements need to be translated into Polish since it is the primary language
TV Television is the largest broadcasting network in
Eastern and Central Europe Is most expensive media for advertising, but most
effective means of advertising
Promotion TV
Most important source of information for Poles Products advertised via TV show the greatest sales
growth of all advertised products because the average Pole watches 4 hours of TV a day
Rates for 30 second slot during peek hours, 7:45 to 10 pm of top three competing channels:
TVP1 and TVP2 are state owned most watched television=$15,533
Polstat= $14,448 (both have nearly 100% market penetration)
UPC Telewizja Kablowa is leader in cable channels Cable not effective since less than 30% of Poles
have it Downside: limit to total ad time because only 15% of
commercial air time is allowed for advertising
Promotion Newspapers
Very well circulated throughout Poland—newspapers can be found everywhere
Low readership: fewer than 30% of Poles read any kind of newspaper—this rate is declining
Advertising cost for popular daily newspaper (1 page b/w)=$14,682
Cinema Roughly 28 million cinema attendances per year. Cost for 60 second time slot per screen per week= $265
Magazines Hard to predict sales levels because majority of
periodical sales occur at kiosk stands, with subscriptions representing less than 4 % of total sales
Promotion Magazines
Many special interest magazines, business journals, niche publications, and specialized newspapers, which is good for reaching target market since there is fragmentation of the market
Advertising cost for monthly magazines (1 page, color)=$12,399
Outdoor Advertising Frequently used on buses, trains, and subway and metro
platforms Outdoor advertising costs:
5 X 2 ½ meter panel= $200 12 X 3 meter panel= $2,000
Personal Selling Direct Marketing
Direct marketing in Polish countries has grown to 38% Each Pole receives 10-12 items per year of promo/ad mail Very expensive: average cost is $28,310
Promotion Direct Marketing
P&G tested direct marketing by sending out shampoo samples to Poles. Received very positively and P&G’s sales increased
Event Sponsorship Soccer is a popular sport in Poland with many
sponsors at the tournaments Lipton currently sponsors tennis tournaments in other
countries Personal Selling- sampling the product
Many Poles will not consider final purchase until meeting face to face
Demonstration very effective Samples of coffee and other beverages being passed
out in hypermarkets throughout urban areas of Poland
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