Reaching the Consumer in Ukraine

Overview by

Marketing Opportunities

Growing Sectors
The following sectors are amongst those that have strong growth: food products (vegetables, beverages (including alcohol), tobacco, oils and ice cream), furniture, perfumes and cosmetics, services, cars and real estate, etc.
Consumer Behavior
The price factor has most value for Ukrainian consumers. In addition, they are greatly attracted by western products, which are of higher quality than national products, and are often difficult to obtain in the hinterland. The quality of after-sales service is a criterion which can set a foreign company apart, for in Ukraine shops very rarely exchange defective goods, and for this reason consumers have a very poor image of this aspect of sales in the country.
Consumer Profile and Purchasing Power
A household's average income is estimated at 4EUR 50, and 90% of the average Ukrainian's budget is devoted to primary expenses (food and housing). The middle class, in the western sense of the term, represents about 9% of the population, and its number is growing at the same time as the country's economy; it is strongly attracted by western products. A large proportion of the popular classes also identifies with the middle class, since a third of the population feels it belongs to this group. Most Ukrainian consumers belong to the 35-49 age bracket, and to the 10-20 one. This latter category stands out for its greater consumption of western products, while the former contribute most to the real estate and ready-to-wear markets.
Consumer Recourse to Credit
Ukranian consumers are increasingly resorting to credit, which is relatively easy to obtain.
Consumers Associations
Ukrainian consumer association
DSSU , The State Committee of Ukraine for Technical Regulation and consumer Policy.

Media in Which to Advertise

Televisual advertising accounts for more than 50% of the advertising market and continues to grow even more every year.

Main Televisions
First chanel
Chanel 5 (website also in English)
1 + 1
ICTV (website also in Russian)
Press advertising accounts for 24% of the overall publicity expenses.

Main Newspapers
United Media Holding
U.A. Inter Media Group Limited
In Transportation Venues
21% of advertising expenses are aimed at public adverts.

Market Leaders:
Kiev subway advertising company (in Ukranian).
Urban advertising billboard and equipment company (in Ukranian).
Advertising company using all types of  base material (in Ukranian).
Advertising company using all types of base material in Kiev (in Ukranian).
Radio advertising accounts for less than 10% of the Ukranian advertising market.

Main Radios
NRCU: Ukranian national radio.
New Technologies (E-Marketing, SMS, etc.)
Internet advertising remains minimal, however it is constantly growing.

Market Leaders:
Main Advertising Agencies
Leo Burnett Ukraine
Saatchi & Saatchi Ukraine

Main Principles of Advertising Regulations

The law forbids advertising alcohol on television (except between 6 and 11 o'clock in the morning) and on the radio. Adverts for alcohol are forbidden on the first and last pages of newspapers and magazines, on public transport and on open advertising boards.
Advertising tobacco and its derivatives is forbidden on television and radio, on open advertising boards as well as in magazines (except in special editions).
Advertising prescription medines in Ukranian media is forbidden. The minister of Health has to give prior authorization for all medicines aimed for children and teenagers.
Other Rules
Products that are forbidden by Ukranian law cannot be advertised in whatever manner. Advertising firearms is forbidden except in specialized press.
Use of Foreign Languages in Advertisement
All advertising should imperatively be translated in Ukranian. Dubbing for television is allowed.
Organizations Regulating Advertising
Ukranian law firms: Ukranian advertising regulation system.

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