Effectiveness of Innovative Value-Oriented Marketing Solutions on Dairy Market

Lviv Politechnic National University
Lviv Politechnic National University

It has been found that optimum distribution of incomes has undergone certain transformational changes in current market conditions. Thus, internationally, the largest share of income (60 %) is the salary, while in Ukraine it makes only up to 35 % of the total income. Other 65 % comes from other sources. The purchasing power of the population is an important factor. In general, it has been proved  (based on the average salary) that Ukrainians spend more than 50 % of their income on food.

Main suppliers and brands operating on the Ukrainian dairy products market (Molokiya™, Yagotynske™, Bila Linia™, Voloshkove Pole™, Slovianochka™, Activia™, Prostokvashino™, Galychyna™) have been assessed under such criteria as target audience, consumption purpose and  product value. It has been established that there is a segment of premium goods consumers on the milk market who are ready to pay more for high quality products.

The expediency of introducing non-traditional methods of competition on  the  fast  moving consumer goods markets has been substantiated. The most common example of such  market is the market  of dairy products, which are reasonably priced and have high level of nutrients, ensuring proper, normalized human diet.

The effectiveness of implementing innovative solutions to the  marketing-mix  development has been identified, the solutions focusing on  such  human values as natural and healthy food, environmentally friendly attitude (Fresh Milk technology, Pure-Pak Sense Aseptic packing).

It has been established that due to active use and modification of traditional marketing tools, Ternopil Dairy Factory PJSC (Molokiya™) showed impressive results as for the market share and geographic coverage of the market. The basis of these decisions was value- oriented approach, i.e. focusing marketing activities not only on the product and the customer, but also on the traditional human values that are often not directly related to any goods or consumers. These are the following three topical areas:

  • in the product policy – creation and/or modification of the products included in the healthy food diet with maximum preservation of natural properties;
  • in the distribution policy – dramatic shortening of the production-consumption cycle, resulting in a very slight loss of natural properties, thus, radical reduction of the requirements for protective functions of packaging;
  • in the distribution policy – maximum convenience of dairy products complete use and packaging recycling

. Berehivskyy, P.S.  Zheleznyak, A.M (2008). Konkurentospromozhnist molokopererobnykh pidpryiemstv: teoriia, metodyka, praktyka [The competitiveness of dairy enterprises: theory, methodology, practice]. Lviv. [in Ukrainian].
2. Vasylchak, S.V. (2005). Formuvannia ta rozvytok rehionalnoho rynku moloka i molochnykh produktiv [The formation and development of the regional milk and dairy market: monograph]. Lviv: Scientific-Production Enterprise "Ukrainian Technologies" [in Ukrainian].
3. Shafalyuk, O. (2009). Modern approaches in optimization of assortment portfolios and the brands architecture of enterprises on the example of the dairy industry. Marketing in Ukraine [Marketing in Ukraine] 6, 49 - 58. [in Ukrainian].
4. Shafalyuk, O. (2008). Reserves for the demand growth and efficiency of marketing activities in the markets of dairy products]. Marketing in Ukraine [Marketing in Ukraine] 4, 12 - 18. [in Ukrainian].
5. Krykavskyy, e.V.  Kubrak, N.R. (2010) The current accents of the formation of enterprises' competitiveness. Visnyk Khmelnytskoho natsionalnoho universytetu: ekonomichni nauky [Herald of Khmelnytsky National University: Economics Herald of Khmelnytsky National University: Economic Sciences] 3, 54-57. [in Ukrainian].
6. Krykavskyy, Ye.V.  Kosar, N.S. (2012). The formation of marketing strategy of industrial enterprise. Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia i problemy rozvytku. [Management and entrepreneurship in Ukraine: stages of formation and problems of development] Lviv, 748, 357-361. [in Ukrainian].
7. Kubrak, N.R., Krykavskyy, Ye.V.,  Kosar N.S. (2013). Potentsial elastychnosti u formuvanni konkurentospromozhnosti promyslovykh pidpryiemstv [The potential of elasticity in the formation of the industrial enterprises' competitiveness: monograph]. Lviv: Lviv Polytechnic Publishing House, 2013. (Series "The world of marketing and logistics", 4). [in Ukrainian].
8. Bochko O.Yu. (2016). The current state of volumes of dairy production in Ukraine. International scientific journal, 2016. 9, 13-15. [in Ukrainian].
9. Yakymyshyn L. Ya. (2015). Strategic dimension of logistic operators in supply chains of products of daily demand. Economic Analysis: Sb. sciences works. Ternopil: Publishing and Printing Center of Ternopil National Economic University "Economic Thought". V. 21, 2, 238-244. [in Ukrainian].
10. Na chomu ekonomliat Ukraintsi? [How do Ukrainians economize?]. (2017). Retrieved from http://www.nielsen.com/ua/uk/insights/news/2016/CCI-Q2.html [in Ukrainian].
11. Global powers of retailing (2017). Retrieved from http://www2.deloitte.com/uk/en/pages/consumer-business/articles/global-p...
12. V Ukraini stvoryly mapu yakisnoho moloka [A map of high-quality milk was created in Ukraine] Retrieved from http: //a7d.com.ua/novini/35524-ukrayina-zblshila-eksport-molochnih-produktv.html [in Ukrainian].
13. Premialni tovary abo smak harnoho zhyttia [Premium goods or a taste of a good life] Retrieved from http://www.nielsen.com/ua/uk/insights/news/2016/premiumization.html [in Ukrainian].