Food and Beverage Brand Development: Global Trends and Directions for Ukraine

Abstract

ABSTRACT. The article presents the results of research on the development of international and Ukrainian brands, and also analyzes food and beverages brands position in the Interbrand rankings and UkrBrand. Moreover, the research studies the dynamics of their value and the representation of world's leading brands on the Ukrainian market in order to identify global trends and characteristics of development in Ukraine.Keywords: brand, valuation, rating, Interbrand, UkrBrand.(ProQuest: ... denotes non-US-ASCII text omitted.)IntroductionFood industry is the most important part of production. It is designed to ensure national food sovereignty and food security. Understanding the specific role of brands in business management helps to transform the knowledge into an effective tool that facilitates maintaining competitive position on the market and relationship with the consumer.The research contributed greatly to the theory of management, studies of definitions the terms: and brand name, and also helped addressing questions regarding their development in the scientific heritage of the founders of marketing D. Aaker, T. Gad, F. Kotler (2003, 2001, 2008). Theoretical and practical principles of branding are set forth in the works of Russian scientists including: V. Domnin (Domnin, 2004). Among the scientific works which studied the problem of management there are works of Ukrainian authors, like: O. Shafalyuk, O. Zozuliov (2009, 2010).Brand development is influenced by global imperatives, but has characteristic features of the Ukrainian economy. The main objective of this paper is to determine these features.In contrast to international practice in Ukrainian science the term appeared in the late twentieth century. The emergence and development of brands in Ukraine were possible thanks to gaining independence of the country. This changed the economic model of development, the use of enterprise management and marketing tools, and developed new consumer behaviour. The present Ukrainian food market is characterized by fierce competition between different manufacturers and their brands, which we think is a marketing tool - the source of competitive advantage that determines the strategic direction, forms and maintains relationships with customers.Brands - world leadersAmong the brands represented in Ukraine by manufacturing facilities or subsidiaries, one should mention: the global Coca-Cola, Pepsi, Nestle, Nescafe, DANONE. They are the leaders of the most prestigious annual ranking formed by experts of Interbrand, which has operated on the market 1974, and according to the information from the company's website since the time when the world began to realize that the is not just a word or a logo. The branches of the company operate in 29 countries under the following slogan: We create value and manage it. Interbrand calculates the share of the profits, which the company gains by brand, its role in intangible assets, and the brand's power. Interbrand annual published the results of their research. The research identified the presence of the leading food industry representatives from among a 100 of the world's leading brands (Table 1).An analysis of the Interbrand's survey results, conducted in 2011 among 100 world leaders, proves the presence of 15 brands of food, including 4 softdrinks brands, 7 alcohol and 4 facilitate food choices. In terms of the country of origins of the aforementioned brands, traditionally, the leader's position is occupied by the United States: 49 positions among top 100, 10 positions in the top ten, seven of the 15 best brands of food and beverages. Second place - Germany: 10 representatives among a hundred of the world's leading producers, but no food brands. The fight for third place in the ranking takes place between France and Japan, both of which was rated to have 7 participants, but 2 of the 15 food brands are French. …