Hochland Romania's general manager Sergiu Mititelu says the promotion budget of the company increases every year proportionate with the turnover.
"You must always keep up with the development of the market and the way the other competitors move. There have been no products launched without surveys of the market until now, but I believe at least 40% of the launch decision has to be based on what you feel and on the direct contact with the market," Sergiu Mititelu says.
Hochland's general manager says that although the Romanian market is growing faster than the market in Western Europe, consumption remains rather low. While the average consumption of cheese in the European Union stands at approximately 20 kilos per capita a year, it reaches only 4 kilos per capita in Romania.
The company's portfolio includes two brands, Hochland and Almette and 40 products on the cheese segment.
According to information provided by the company, the Hochland brand enjoys 80% awareness among consumers, with the market share on the segments where it is present ranging from 30 to 80%.
"Both the group and the branch in Romania specialise only in cheese production," says Mititelu.
The Hochland group, whose turnover stood at nearly 800 million euros in 2005, owns ten factories in Germany, Poland, Romania, Russia, France and Spain.
The group this March bought the number two on the cheese market in Switzerland. Hochland has two cheese factories in Romania, one in Sighisoara and one in Sovata.
The company expects turnover to exceed 42 million euros this year, an increase of 11% on 2005.
Hochland posted 37.8 million-euro turnover last year, an increase of 43% in euros compared with 2004. Its profit doubled to 3.8 million euros in 2005.
"We had a 22% growth in turnover in the first six months from the same time in 2005," says Mititelu. He added last year's jump was made possible by the improvement in the people's purchasing power among others.
Hochland will invest 6 million euros in the two factories it has in Romania - in Sighisoara and Sovata this year.
The total value of investments from entry on the market through the end of 2005 amounts to 20 million euros.
"This year's investment accounts for almost one third of the amounts allocated on the domestic market thus far. Two thirds of this amount will go to environment projects, to rally to the European standards," he adds.
Hochland Romania's general manager feels integration into the European Union will be a difficult moment no only for the domestic producers but also for the competitors that will enter the market with imports.
"Price is no longer the main option of the Romanian consumer, even though it remains an important factor. Quality has become the priority when choosing a particular product," he says.
Hochland in Romania
Investments until the end of 2005 stand at 20 million euros
Plans to invest 6 million euros this year
Owns two factories, one in Sighisoara and one in Sovata
Says it enjoys 80% brand awareness
Posted 37.8 million-euro turnover in 2005, up 43% on 2004
Its portfolio includes Hochland and Almette
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