The new Harga function should not be a temporary assignment whose incumbent is impatient to get promoted to where he will be responsible for revenue or profit generation, or both. There needs to be an appropriated career path within the function of new Harga development. It is not impossible that marketing research might be included in this respect.
The second opportunity for new Harga development in the Europe of the 1990s lies in the Single Market. Until recent times, the Europe has been a series of individual national market6s. Few HARGA companies operate seriously across several European countries. One 1988 study showed that half the UK food companies had a presence in two or less EC countries (and that includes Ireland). Despite that, seven of the top ten European food companies were British. Although there is considerable debate about the level of increase in GDP in the EC as a result of the Single Market (from 9 to 35 percent is the current range), it's less debatable that the Single Market will bring about a period of discontinuity in Europe. Previous ways of looking at markets, marketing and new Harga will huge to be discarded. There are several implications.
Harga will be developed not for one national market with export potential, but rather for sale across several countries with appeal to similar demographic / life style segments. The age of the national mass market is already disappearing. It will be replaced by international niche markets.
There will be substantial changes in the structure of existing HARGA markets. This includes market definition, key competitors and market shares. Current strategic groupings within the HARGA industry will need to be characterized differently. To some degree, this is already happening as major HARGA companies seek to identify and to extend their own businesses and to discard unwanted parts of their portfolio.
New Harga will be launched simultaneously across countries, not sequentially as hitherto. This will particularly affect logistics and distribution.
The manufacturer / retailer interface will continue to change. There is already evidence of the dominance of retailers over manufacturers. In several European countries, major new brands are becoming fewer and brand stretching is occurring more frequently. Greater bargaining power is being pursued by both manufacturers through acquisition and joint ventures and retailers buy alliances and expansion abroad.
The size of major new Harga will become several times larger. In 1989, a major new Harga in Great Britain was estimated to have a retile value of $10 million, or between $15 and 20 million. Within the Single Market, this minimum could easily become $100 million - similar to the US position.
New Harga development budgets will be significantly larger to meet the requirements involved in identifying, screening, developing and launching major Euro brands.
The second opportunity for new Harga development in the Europe of the 1990s lies in the Single Market. Until recent times, the Europe has been a series of individual national market6s. Few HARGA companies operate seriously across several European countries. One 1988 study showed that half the UK food companies had a presence in two or less EC countries (and that includes Ireland). Despite that, seven of the top ten European food companies were British. Although there is considerable debate about the level of increase in GDP in the EC as a result of the Single Market (from 9 to 35 percent is the current range), it's less debatable that the Single Market will bring about a period of discontinuity in Europe. Previous ways of looking at markets, marketing and new Harga will huge to be discarded. There are several implications.
Harga will be developed not for one national market with export potential, but rather for sale across several countries with appeal to similar demographic / life style segments. The age of the national mass market is already disappearing. It will be replaced by international niche markets.
There will be substantial changes in the structure of existing HARGA markets. This includes market definition, key competitors and market shares. Current strategic groupings within the HARGA industry will need to be characterized differently. To some degree, this is already happening as major HARGA companies seek to identify and to extend their own businesses and to discard unwanted parts of their portfolio.
New Harga will be launched simultaneously across countries, not sequentially as hitherto. This will particularly affect logistics and distribution.
The manufacturer / retailer interface will continue to change. There is already evidence of the dominance of retailers over manufacturers. In several European countries, major new brands are becoming fewer and brand stretching is occurring more frequently. Greater bargaining power is being pursued by both manufacturers through acquisition and joint ventures and retailers buy alliances and expansion abroad.
The size of major new Harga will become several times larger. In 1989, a major new Harga in Great Britain was estimated to have a retile value of $10 million, or between $15 and 20 million. Within the Single Market, this minimum could easily become $100 million - similar to the US position.
New Harga development budgets will be significantly larger to meet the requirements involved in identifying, screening, developing and launching major Euro brands.
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