Bulgarian Market Evaluation (Global Marketing)
Task. 1
A quick evaluation of the global macro environmental variables that are likely to have the most significant impact on the company concluded that the 3 main factors are the economic, social and technological factors.
1. Economic
The state of the economy of the country has enabled for a lot of multinational companies to enter their targeted segment with minimum costs and massive profits. The philosophy behind the method is that people look for more value for their money. Understandably this creates a demand for more globalised approach to services and goods.
In 1999 the international self-service wholesaler Metro Cash and Carry entered the Bulgarian market. This German originated company operates in Europe and in some countries in Asia and North Africa. The way it differs from other retail chain stores such as Walmart, Asda, Tesco, etc. is that Metro uses the cash and carry concept, meaning that its target market is not the end consumer, but professional customers (businesses) such as hotels, restaurants, traders, etc. That’s why it only serves registered customers, which keeps a very specific customer base.
Metro Cash and Carry fits the beliefs of Bulgarian consumers about value for money very well, but it is a professional retailer and being one its stores are in remote out-of-town industrial areas. This means that it cannot replace the corner shops that are placed locally in cities. Kaufland Stiftung & Co. KG entered the Bulgarian market in 2006 and doing so filled this gap. The value proposition was closer than ever before. The value minded consumer could now shop locally at the same prices as in the out-of-town Metro. This lead to the end of a lot of the small shops and businesses that were positioned locally, because they simply could not compete with the big retail chains such as Kaufland on price.
2. Social
Metro Cash and Carry has created a good relationship with local farmers and manufacturers of different national
A quick evaluation of the global macro environmental variables that are likely to have the most significant impact on the company concluded that the 3 main factors are the economic, social and technological factors.
1. Economic
The state of the economy of the country has enabled for a lot of multinational companies to enter their targeted segment with minimum costs and massive profits. The philosophy behind the method is that people look for more value for their money. Understandably this creates a demand for more globalised approach to services and goods.
In 1999 the international self-service wholesaler Metro Cash and Carry entered the Bulgarian market. This German originated company operates in Europe and in some countries in Asia and North Africa. The way it differs from other retail chain stores such as Walmart, Asda, Tesco, etc. is that Metro uses the cash and carry concept, meaning that its target market is not the end consumer, but professional customers (businesses) such as hotels, restaurants, traders, etc. That’s why it only serves registered customers, which keeps a very specific customer base.
Metro Cash and Carry fits the beliefs of Bulgarian consumers about value for money very well, but it is a professional retailer and being one its stores are in remote out-of-town industrial areas. This means that it cannot replace the corner shops that are placed locally in cities. Kaufland Stiftung & Co. KG entered the Bulgarian market in 2006 and doing so filled this gap. The value proposition was closer than ever before. The value minded consumer could now shop locally at the same prices as in the out-of-town Metro. This lead to the end of a lot of the small shops and businesses that were positioned locally, because they simply could not compete with the big retail chains such as Kaufland on price.
2. Social
Metro Cash and Carry has created a good relationship with local farmers and manufacturers of different national