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A country-cluster analysis of the distribution and promotion infrastructure in Central and Eastern Europe

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  • Manrai, Lalita A.
  • Manrai, Ajay K.
  • Lascu, Dana-Nicoleta

Abstract

A country-cluster scheme is developed in this paper classifying 18 countries of Central and Eastern Europe in terms of their overall attractiveness for international marketing. These 18 countries include Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Poland, Romania, Serbia-Montenegro, Slovakia, Slovenia and Ukraine. When companies examine and evaluate the potential countries for international marketing opportunity, they not only look at the demand potential of the country but also the logistics of marketing operations in the country. While all 4 Ps of marketing are regulated by the government, the availability of infrastructure for efficient distribution and promotion of products is a critical consideration for selection of a country. This is so because compared to the other 2 Ps of marketing mix, i.e. product and price decisions, the success of distribution (place) and promotion decisions is relatively more out of the control of marketers, being tied to the availability of infrastructure. Accordingly, this country-cluster scheme is developed in two stages. First, selected demographic and economic indicators are analyzed to asses the overall market potential and economic strength of the country. Next, several factors related to distribution and promotion of goods in these countries are examined in detail. Finally, the two sets of classification schemes above are combined to develop a two-dimensional country-cluster matrix (demographic-economic as the first dimension and distribution-promotion as the second dimension). The aggregate analysis reveals three country clusters. Cluster 1, the most promising group of countries (attractive on both dimensions) includes Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine. Cluster 3, the least promising group of countries (attractive on neither dimension) includes Albania, Bosnia-Herzegovina, Macedonia and Serbia-Montenegro. Cluster 2 includes countries which are either moderate in terms of attractiveness on both dimensions or countries with a trade-off between two dimensions (one high, other low). Cluster 2 includes Belarus, Bulgaria, Croatia, Estonia, Latvia, Lithuania, Moldova and Slovenia. Implications for international marketing and future research directions are discussed.

Suggested Citation

  • Manrai, Lalita A. & Manrai, Ajay K. & Lascu, Dana-Nicoleta, 2001. "A country-cluster analysis of the distribution and promotion infrastructure in Central and Eastern Europe," International Business Review, Elsevier, vol. 10(5), pages 517-549, October.
    • Handle: RePEc:eee:iburev:v:10:y:2001:i:5:p:517-549
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    Cited by:

    1. Leila Hurmerinta-Peltomäki & Niina Nummela, 2006. "Mixed methods in international business research: A value-added perspective," Management International Review, Springer, vol. 46(4), pages 439-459, August.
    2. Katharina Maria Hofer, 2015. "How Do Austrian Small and Medium-Sized Service Enterprises Internationalize? Entry Strategies into the Emerging Markets of Central and Eastern Europe and the Role of Relationships," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 14(1), pages 23-42, June.
    3. Liu, Chang & Sun, Xiaolei & Chen, Jianming & Li, Jianping, 2016. "Statistical properties of country risk ratings under oil price volatility: Evidence from selected oil-exporting countries," Energy Policy, Elsevier, vol. 92(C), pages 234-245.

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