Industrial brand management in central and eastern Europe

Abstract

Branding is a new phenomenon to people in Central and Eastern Europe.Their Communist past did not address concerns such as branding. Western companies doing business in those countries have to have a thorough understanding of the cultural dissimilarities to be able to understand the problem area. Volvo Truck Corporation was selected to serve as case company for the study. Central and Eastern Europe were represented by Hungary and the Czech Republic. The purpose of the study was to examine how the Volvo Truck brand can be strengthened in Hungary and the Czech Republic.By conducting interviews on the two markets and applying culture and branding theory, conclusions were drawn regarding how Volvo Truck should manage their brand in Central and Eastern Europe. The assets that increase brand equity can be divided into given and variable assets, with the given assets being the most important and necessary to stay in business. However, to differentiate themselves from the competitors, Volvo needs to employ the variable assets and adjust them to the country culture. Four adaptable brand areas have been found, i.e. brand loyalty, brand association, product attributes and marketing communication. By effectively managing these tools Volvo Truck increases their brand equity and also the brand loyalty. Not only does this generate increased brand loyalty, but also new customers, and it thereby provides value to the Volvo Truck Corporation.