Challenges and Opportunities in the Use of Marketing Tools and the Promotion of Non Wood Forest Products-Based Small and Medium Enterprises in the South East Europe

Abstract

Background and Purpose: The South-east Europe (SEE) region is facing a new market economy era where establishing new businesses is more than needed in all sectors. The forest sector, faced with new market emerging opportunities, is affected by the constant increase of a number of forest related enterprises. This paper describes the challenges and opportunities related to the use of marketing tools for improving business of the small and medium enterprises (SMEs) dealing with non-wood forest products (NWFPs) in SEE region. The research on this subject in the SEE region is scarce despite the rich biodiversity as a solid base for establishing eco-businesses. Materials and Methods: The method used in this paper is quantitative, based on survey data collected from enterprises in the NWFPs sector followed by statistical data analyses using Statistical Package for Social Sciences (SPSS). The survey was conducted during 2011 and 2012 in four SEE countries: Croatia, Bosnia and Herzegovina, Serbia and Macedonia. Results: The results showed that developed channels of distribution, branding and advertising of NWFPs are recognized in all countries as important and very important, but these marketing tools are used only few times per year. The majority of respondents pointed out advertising as the most frequently used and as the most successful tool. Interviewees’ future investments are to be focused on improving equipment for drying, packing, refrigerating and transport. Several entrepreneurs from Macedonia pointed out that they would invest in increasing the number of buying points and herb plantations while almost all Croatian entrepreneurs will invest in advertising, branding and promotion. Majority of respondents from Serbia are also of the opinion that financial resources should be invested in new equipment. The reasons for these investments can be summarized in reducing costs and increasing profit or in faster turnover. Conclusions: The use of marketing tools is important because they have positive influence on sale, improve communication and cooperation between enterprises and with consumers, build reliable buyers and increase the number of consumers, which leads to higher profit and creates new opportunities for NWFPs based enterprises. Intensive use of promotion tools should be seen as an opportunity for these enterprises in the SEE region to overcome current challenges and improve their business. The main reason for this situation, as it was stated in the interviews, is the fact that most of the enterprises do not have a final product. Another reason is lack of funds, because of which the question: “If you have financial sources where you should invest?” was answered with promotion, branding and other marketing tools.

Keywords

• non-wood forest products
• small and medium enterprises
• promotion
• SEE region