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Successful Small Business – Effective Marketing? Prospects on the Food Market for a Small Company
91-104Views:107Successful small companies concentrate their marketing strategy on satisfying the specific requirements of market niches which are unprofitable for big concerns. It is a complicated task on the market of common consumer goods – like the food market – because it is difficult to find the right buyer segment among the large number of costumers. It is more difficult to choose the adequate distribution and communication channels. The Darnó-Hús (Darnó Meat) – situated in the north-west of Hungary near the Austrian and the Slovakian borders – also faces this problem. Firstly, they do not choose between traditional local food and functional foods, so they obviously aim at two niches. Secondly, small well-branded bakery shops and big supermarkets can be found among the company’s sales points. Furthermore, these sales points are geographically not concentrated. This small company cannot afford to spend much on widespread media communication, so its brand name is not well-known enough to get good product placement locations in the stores. As the SWOT-analysis, which was carried out with the collaboration of the management, points out, there is no unity in the choice between the offensive and defensive strategies. The internal factors of the company, such as high-quality products and excellent professional team, which is flexible enough to fulfil the specific requirements, would assign the company a stronger market position, however, the company’s management does not have adequate marketing tools to achieve a higher penetration into the consumer market. After twenty years in operation, they have to make a decision about the next stage of development. Actually before they start to improve their production capacity, the management has to define their market more precisely. To reach the targeted market niche effectively, more effective branding, clear – emotional and rational – positioning in communication, and adequate selling placement are needed.
JEL code: M31
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Affinity for Consumer Resistance Among Hungarian Consumers
29-45Views:161The causes of the loss of market results go beyond the realities of intense and noisy competition. The rejecting attitude and resistant behaviour of consumers can exert pressure on the companies’ business processes – several market examples draw attention to the weight of those consequences. To find out the appropriate way to handle this phenomenon became inevitable. The resistant behaviour of consumers exists in numerous markets and industries, among these foods are particularly concerned. There are examples for short and long term, but intense consumer indignation. Although consumer resistance is not a product- or market-specific phenomenon, it’s worth considering the issue of food, because of its embeddedness in everyday life, so market players may face easily criticism and conflict of interest. The study provides an overview of markets facing consumer resistance. The aim of the quantitative research is to find out the affinity of Hungarian consumers for consumer resistance and its various forms.
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Interpretation of Health-conscious Food Consumption Behavior on the Basis of LOHAS Concept
39-46Views:319In our study, the information search behavior of sustainability committed consumer group is analyzed. Furthermore, consumer opinions about nutrition labels on food packaging are highlighted. According to the international literature, LOHAS (Lifestyle of Health and Sustainability) group is the most committed consumer segment to sustainability.
Exploration of Hungarian sustainability committed consumer groups’ opinion about food labels is supported by the closing part of a research chain which was started in 2010. This, last research was carried out in 2012, where, with the aid of quota sampling, Trend followers’ and Unconcerned’s judgment on food labels was investigated. The quota and the two mentioned groups were formed on the basis of a national representative research, which was performed in 2011. Information search behavior was evaluated according to the structure of Grunert-Wills’ information search model. In this study we focus on our research results, which connect to the last two steps (understanding, interferences and use) of the mentioned model.
Goal of this research is to investigate in a practical aspect of information search behavior of domestic sustainability committed consumer group (“Trend followers”) in connection with food labels proving health effects of foodstuffs. Four hypotheses were defined to reach our goal:
H1: Among health information on food packaging, labels stating energy value, are getting a higher influencing role in food purchasing process, where conscious consumer groups have a deeper knowledge about the objective meaning of food labels.
H2: Consumer knowledge about objective meaning of food labels is getting a highlighted role in formation of brand loyalty.
H3: Trust has an essential role in consumer acceptation of food labels, where common qualifier activity of different organizations (state, profit and nonprofit area) come into the front.
H4: Correct understanding of food labels has a positive influencing effect on acceptation of higher prices and on real use of food labels during food purchasing.
One- and multivariate analysis and cross table analysis were calculated to investigate our assumptions. In the closing part of our study, three practical recommendations are defined, which relate to follows: optimization of communication strategy of food industries, way of introduction of new food labels and need of objective guidance of consumers about food information. -
Competition and Benefits – The Hungarian Results of the Decanter World Wine Awards and their Correlation with Wine Prices
53-60Views:88This study examines the relationship between Hungarian wine prices and the results of the 2023 Decanter World Wine Awards (DWWA). The study analyses the relationship between the DWWA and the prices of medal-winning Hungarian wines and the impact on the Hungarian wine sector. An analysis of the correlation between the Decanter World Wine Awards and Hungarian wines shows the price-shaping effect of wine competitions on the Hungarian and international wine market. By taking advantage of the recognition and credibility provided by the DWWA, Hungarian winemakers have the opportunity to position their wines in higher market segments, serving discerning consumers seeking premium and award-winning wines. Three regions seem to be best suited for this: Tokaj, Eger and South Pannonia (Villany and Szekszard). The winning wines will contribute to the economic viability and sustainability of the Hungarian wine industry, providing access to new sales channels, international recognition and promoting the unique and diverse Hungarian terroir. The medals achieved in this prestigious competition will facilitate market entry in competitive markets and foster cooperation with distributors and importers seeking quality-driven wine portfolios. Continued investment in quality development, sustainability practices and market diversification will be essential for Hungarian winemakers to capitalise on the success of the competition for long-term growth. In the future, the authors aim to conduct a study of the results of several years of competition, incorporating new perspectives.
JEL Codes: E2, E3, F1, M2, M3 -
Situation Analysis of the Hungarian Beekeeping Sector (Production, Trade)
21-34Views:460From year to year, the global production of honey is continuously growing, but the honey producers and other stakeholders around the world and in Europe face similar processes and difficulties that are destroying the honey market. It would be necessary to reduce counterfeiting, improve the bee health situation, operate a comprehensive database and monitoring system, and provide extensive support to beekeepers. In order to ensure the sustainability of the beekeeping sector, it is necessary to develop and apply good agricultural practices, and in order to preserve biodiversity, related rural development programs and measures are needed. If the sector stabilizes (in Hungary, in EU-28 and worldwide), the long-term sustainability of beekeeping can be achieved; its ecological significance can be protected, and the rural retention role of the countryside may be strengthened in honey-producing countries. The aim of the study is to map the EU and Hungary honey production and trade with the help of relevant literature and statistics, and to present the current situation, difficulties and challenges of the honey market. After analyzing the market situation and sectoral processes, a SWOT matrix has been created including the strengths, weaknesses, opportunities and threats of the beekeeping sector. Then we made recommendations to improve the current situation in the beekeeping sector.
JEL Code: M31 -
Qualitative Investigation of Salt and Sugar Free Nutrition in the Canned Vegetable Market
71-82Views:323“Free from” products as important components of a health-conscious diet are prevalent on store shelves. Our research is based on the analysis of the market situation and introduction possibilities of a potential canned vegetable that can even satisfy the needs of consumers for salt and sugar free meals. Secondary data and information collection provided the basis for further research. In the primary research, we used three qualitative methods, which were netnographic examination, expert interview, and focus group research. In the course of netnography, we examined consumer needs for salt and sugar free canned food on the Internet, mainly on social media, based on pre-collected keywords. The interview with an expert in the canning industry focused on the specificity of canned food and the position of “free from” canned food. Focus group research was composed to learn about the perceptions of university students about both canned food and their customers alike. Among other things, we have shed light on the fact that consumers associate the expression “free from” with the word health, but emphasizing “free from” nature of the product can create a sense of lack. Examining “free from” canned food, we found that young, time constrained, health-conscious consumers can be the target group. Due to the target market, we recommend promoting it on online platforms, where it would even be advisable to use educational campaigns.
JEL Codes: M31, Q13
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Preliminary Research in Connection with the Significance of the Traditional and Regional Foods in the North Great Plain Region
79-91Views:77The traditional and regional foods represent distinctive and unique values for customers in the world food market by their inimitable tastes and appearances. In today’s fast-moving world in which globalization’s different – both positive and negative – effects determine the daily activities of consumers and influence their needs, their choices and their decisions during the regular food and raw material purchases; it is relevant to strive for the presence and regular consumption of traditional products also to become known to a wide circle of society. The key objectives of our research are the main effects of traditional and regional foods in the Northern Great Plain, particularly with regard to the marketing and economic aspects approach. Our study is an experimental study of a later larger number of elements and representative survey, and it is based primarily on online questionnaires. During the research we received 151 available questionnaires. The interviewed inhabitants of the region have declared a positive opinion in the context of traditional and regional foods, most of them purchased and consumed these products regurarly.
JEL code: M31
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Attitudes of Alternative Diet Followers Towards Purchasing Local Products
3-15Views:457Earth’s population has been growing steadily over the last centuries, with increasing demand for food production. For this reason, despite the current technological progress, even more and more cultivated lands are needed. The purpose of our research is to examine the proportion of local products that are being used by those who follow different alternative diets, which can also be used to test the behaviour towards sustainability. In order to reach our goals, we have developed a national survey including 504 Hungarian consumers. The survey consists of several questions about alternative diets, food-oriented lifestyle, and local products. The answers were weighted in order to properly represent the gender distribution of the population and were analysed using descriptive statistics and factor analysis. According to the results, environmental conscious behaviour appears among the alternative diet followers, but for sustainability this is not a sufficient condition. Local products are bought by 82.9% of the respondents. The biggest incentives of buying local products are the origin, the support of local producers / merchants, the reduction of food kilometres, the healthy and natural characteristics of the products, and the positive experiences with local products. In contrast, the reasons why local products are mostly refused by consumers are the facts that they are time consuming and difficult to obtain.
JEL codes: C38, D70, I12, M31, Q56
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The Role of GI Products in the Hungarian Food Discounters
3-18Views:151More than 25 years ago, the European Union (EU) has established a sui generis system of geographical indications (GIs) for identifying the products which quality, reputation or other characteristics are linked to their geographical origin. By the end of 2018 the official register of the European Commission (the DOOR database) included 1448 registered food products with GI label, but their number is continuously increasing. For several reasons, we examined the discounters operating in Hungary in order to estimate the market size and price premium of GI foods in Hungary. Firstly, discounters’ share in the Hungarian food retail sector is continuously growing and reaching the majority of the average Hungarian consumers. Secondly, their typical feature is that their supplies are almost constant and limited, discounters target the price sensitive consumers, so the minimum level of price premium can be defined here. In this study, we would like to estimate from below both the market size of Hungarian GI products and the price premium of GI products compared to their direct substitute products. To gather real life data, we have gone mystery shopping for a year every month (January-December 2018) to an Aldi, Lidl and Penny Market retail shop located in Budapest. We collected data of available GI products and their closest substitute products which were available in the shop and then we analysed the dataset consist of several hundreds of observations. Our results show that the number of GI products available in the Hungarian discounters is very limited, however, their supply is quite permanent. The majority of GI foods available in Hungarian discounters are Italian and the average price premium was around 43% with remarkable differences. Our results show that currently GI food products have limited importance in the Hungarian food market as they are rarely available. On the other hand, a real price premium for GI products exists in the Hungarian market and an even higher price premium might be expected in less low-price oriented food retailers.
JEL Classification: M31, M37, O13, O34, Q13
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Advertising, Slogan and Superheroes – Persuasion Tools of Children
47-57Views:232In our research, we have examined how often children and teenagers sit down in front of television screens and come into contact with television advertisements and other sales promotion tools used by companies. We mostly placed emphasis on brand-related cartoon characters, logos and slogans used by companies. The remembering rate is shockingly high, higher than is case of their parents. We can say that well-placed cartoon characters, logos and colors play a very important role in influencing children. All of these contribute to the development of brand loyalty, which – if develops during childhood – can last an entire lifetime.
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The Transformational Impact of Industry 4.0 on the Wine Marketing and Wine Sector
55-64Views:135Industry 4.0 - like other industries - is transforming the wine sector. From viticulture to winemaking processes to wine marketing and sales, Industry 4.0 technologies have appeared everywhere and have proven to be effective with numerous best practices. It can be stated that sooner or later every serious market participant will incorporate some of Industry 4.0's solutions into their business strategy - otherwise, they will suffer from a difficult-to-catch and manage competitive disadvantage. This study summarizes the processes and main characteristics of the first three industrial revolutions, then analyzes in more detail the fourth industrial revolution and the concept of Industry 4.0, its events, the development opportunities inherent in Industry 4.0 innovations, and certain social risks as well. Subsequently, using case studies and examples uncovered through literature research, it illustrates the connection points between Industry 4.0 and the wine industry - primarily wine marketing.
JEL Codes: O3, O4, M310, M370, Z310, Z330 -
Qualitative Analysis of Consumers’ and Experts’ Perceptions of Energy Drinks
51-63Views:496Energy drinks are very popular products, as evidenced by their high soaring market value. However, perceptions surrounding beverages often take extreme forms, both among consumers and experts. Our research aim is to get closer to expert and consumer insights using qualitative methods. The study consisted of three main parts: the first was a netnographic study, while the authors successfully separated 3 online consumer groups. This was followed by a closer examination of each group. We interviewed four prominent representatives from three disciplines, asking about the differences between coffee and energy drinks and their effects on the body. This was followed by an examination of the consumer side through two focus group discussions of 8-8 people. Participants in one group are supporters of consuming energy drinks and in the other group are opponents of consuming energy drinks. Both conversations took place under the same conditions, based on a similar scenario, which included several questions as well as tasks that shaped projective techniques. The results of the research can be attributed to the statement that the assessment of energy drinks contains many contradictory elements, yet those interviewed during the research and the known literature sources all emphasized the importance of moderation.
JEL Classification: M31, Q13
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Chocolate Consumption Habits of Hungarian Women and Their Consumer Behaviour Regarding Sugar-free Chocolate
3-20Views:235In line with the global trend of health and wellness, there is now an increased demand for products that have a positive effect on health (or that are at least less unhealthy), such as sugar-free or reduced-calorie chocolate, especially among female consumers. Therefore, in our research, we set out to explore the chocolate consumption habits of Hungarian women, with particular regard to consumer acceptance of sugar-free chocolate. In the course of our primary research, we conducted an online questionnaire survey with the participation of 370 female respondents, during which we explored some elements of their consumer behaviour related to conventional and sugar-free/reduced-calorie chocolates; moreover, possible differences in the willingness to pay for sugar-free and conventional chocolates were also examined by using the packaging of two real, 100 g Stühmer milk chocolate bars and their modified versions as well. According to our results, the vast majority of women interviewed like chocolate, with milk chocolate being the most popular. Most of them eat chocolate a few times a week, but consumption of sugar-free/reduced-calorie chocolate is much less common. When buying chocolate, the respondents are clearly most influenced by the taste, which is followed far behind by the price, and then the healthiness of the chocolate. Most of the women asked are interested in sugar-free and reduced-calorie chocolates, the majority of them consume such products because of health awareness. The respondents’ willingness to pay for sugar-free chocolates is not lower compared to the versions sweetened with sugar, but the willingness to pay reaches the market price only in the case of a gift purchase; in the case of a purchase for one’s own consumption, it mostly falls short of it.
JEL-Code: M31 -
The Role of the Cognitive Component of Consumer Attitude in the Image of the Pálinka
21-32Views:275The research aim is to explore the potential role of consumer attitude components in image development related to a traditional Hungarian alcoholic beverage, the pálinka. This study focuses on the effect of the cognitive component of attitude on image of the pálinka. The relevance of this research is the expansion of the pálinka market in recent years and the changing of the regulatory environment about homemade spirits. Distillate made at home, which product improperly called homemade pálinka, is very popular in Hungary. Based on the qualitative studies, the most important characteristics in the consumer perception of alcoholic beverage are quality, price, prestige, fashion and origin. The importance of these attributes of the most popular alcoholic beverages in Hungary was assessed by the participants on Likert scales. Homemade spirit has the most favorable attitude and in-store pálinka has the most unfavorable attitude. To understand the effect of the cognitive component, we used two types of the multiattribute attitude model of Fishbein. By using a 7-point semantic differential scale, we could graphically illustrate the consumer belief about the homemade and in-store pálinka. Image profiles on the semantic differential scales show the differences in image of the analysed alcoholic beverages. The study confirmed the advantage of homemade spirit image over in-store pálinka, points out the importance of education and information in the case of the cognitive component of consumer attitude. The reconsidering of the marketing communication of the in-store pálinka producers is very important and urgent.
JEL Classification: M31
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Impact of the Financial and Economic Crisis of 2009 on the Hungarian Food Retail Sector in the Light of Consumer Confidence – Improving Trends, Increasing Consumer Confidence
47-59Views:79As a result of the international financial and economic crisis of 2009, Hungarian customers started to make informed purchasing decisions. Merchants recognizing this phenomenon formed their strategies accordingly, while trying to meet the requirements of the constantly changing government regulations. This strategy ensured primarily that they could maintain their position in trading, new consumer expansion was, however, limited. Limited because consumers have realized the situation, i.e. traders have been competing for their income and complex shop visiting has become widely common, implying the weekly tour of different shops in retail chains with an eye on the current promotions. Based on the data of the last eight years, the year most affected by the economic crisis was 2009 – which proved to be the deepest point. It has to be highlighted however that though signs of recovery are clearly visible, the volume of food retail returned to its growth path only in 2014, while sale increase in value has been continuous since 2008. This suggests that the impulses of the crisis starting in the fourth quarter of 2008 formed the domestic food trade for full six years. Also, this period was required to regenerate consumer trust. The more favourable prospects of the finances of both individuals and the economy encourage an increase of willingness to buy. The six-year period impacted by the crisis intensified concentration among trade stakeholders. The forecasts proved realistic, supermarkets have become more popular sites for shopping, although hypermarkets as strong competitors have been able to keep pace due to tailored promotions in the 6 trading days permitted by law until April 2016. Due to the massive social and political pressure the Government repealed the Act prohibiting work on Sundays in most retail shops with effect from 16 April 2016.
JEL code: M30 General