Gorenje to Use a Single Brand Name
May 24, 2004
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Slovenian home appliance maker Gorenje announced that in all of its markets, it will now use a single brand in order to boost the group's profile internationally, especially in the major European market.

"If we fail to produce a strong brand name, we will be forced to compete with low prices of for example Chinese producers, who know how to do it much better," said Andrej Vizjak of the Gorenje board.

According to Sandi Uranc, marketing director, said, the existing brand "Gorenje" will be accompanied by a new slogan: "It's nice to be together at home." The company says the marketing campaign is to appeal to one's emotions by promoting how cozy it is to be at home. A total of 20 million euros (approx. U.S. $23.9 million) is to be earmarked for the marketing campaign annually, Uranc said.

Gorenje currently promotes its own brand in 70 percent of its sales. The label is best known in the former Yugoslav markets, where 96 percent of consumers recognize it.
Some 50 percent know the brand in Bulgaria and 30 percent in Romania. Constant growth is also recorded on the Russian market, where brand recognition stands at 20 percent.

In Denmark, Gorenje is said to have already secured a market share of 10 percent and a familiarity of 50 percent. In Germany and Austria, from 10 to 15 percent of consumers are familiar with the brand, according to the appliance maker.

Given the strong competition on the low-price market, the company is aiming at high-end markets, where it plans to sell 60 percent of its products, Uranc also announced.

Gorenje has been Slovenia's leading net exporter by selling 93 percent of its products abroad. It is ranked eighth among producers of household goods on the European market. (Slovene Press Agency, Slovenia Business Week)

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