Competition Crunch Requires New Image

Olga Ceban shares her new marketing success with a packed house of fellow manufacturers during a USAID-sponsored roundtable at the 2008 Made in Moldova exhibition. April 10, 2008. When international lingerie companies arrived in Moldova they easily attracted the pocketbooks of consumers eager for new, stylish trends.  Olga Ceban, a local company selling its products under the Ravetti brand, had experienced stable sales for many years, but suddenly it faced a steep decline in revenue as the competition in Moldova increased.  The company’s brand image was old and outdated.  Customers saw it as representing the past.  With its future uncertain, urgent changes were needed, but the company was uncertain how to adjust. Olga Ceban then enlisted the help of the USAID Competitiveness Enhancement and Enterprise Development Project.  USAID local experts were quick to notice that the company did not understand its customer base nor did it segment or target its market strategically.  After analyzing consumer data with the company’s management, the project advised Olga Ceban to focus on young women from 15-29 years old, a market segment whose demands were not being fulfilled by foreign competitors.  It was recommended that the company tailor its product, price, and promotion policy for the new target market and that the Ravetti brand receive a radical makeover.  A new strategic marketing and promotion plan tied these recommendations together – a plan that was adopted and funded by the company. With limited technical assistance from USAID and initial company investments of US$36,000 in branding and marketing, results came quickly.  During the first three months after launching the new brand, revenues increased by nearly $70,000 – a 60% increase over the same quarter of the previous year.  Olga Ceban opened two new retail shops and hired a full time brand manager.  Following its marketing plan, the company now renews its collections monthly to keep styles fresh and maintain and strengthen interest of its target market.  The positive results have even surprised the company’s management.  According to the general director, Ms.  Olga Ceban, “We concentrated so much on the production process that we overlooked the importance of marketing.  If not for USAID’s efforts and encouragement, we would hardly have ventured to invest in marketing.”

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