These are some of the conclusions the entrepreneurs and branding experts attending the ZF Branduri Romanesti (ZF Romanian Brands) conference organized in partnership with Raiffeisen Bank in Iasi on Tuesday reached.
More than 150 local entrepreneurs attended the event discussing some of the stories of those who created Romanian brands or how the local brands can develop in the competition with the international ones.
“The brand matters a lot in a sale of the company, too. If the brand is strong, the price may be double, triple. You only realize it when you lay your cards on the table,” said Vasile Armenean, the entrepreneur who built Betty Ice, a business he took to EUR30 million revenue a year and then sold it to Unilever this year, in a deal put at EUR90 million to EUR100 million.
“Whoever wants to invest in a business, does it looking at the future. One must be aware of the value of the brand and build it soundly, brick by brick.”
He himself became aware of the power of a brand looking at what companies abroad did, he said. Back when he first started Betty Ice 27 years ago, communication strategies were not a priority and Romanian companies had no one to work with on the local market.
The brand of a company also shows how responsible those establihsing a business are and a powerful name on the market can help keep Romanians in the country.
“Responsibility is having a balanced approach. We want to develop and support brands. The more brands, the more prosperous we will be (…),” said Felix Daniliuc, executive director Raiffeisen Bank Romania.
Investment in a brand amounts to 2% to 10% of the revenue of a company. For instance, the Cotnari brand allocates 10% of revenue for promotion every year and the Agricola group invests EUR1 million in promotion out of annual budget of EUR8 million.
“The first step towards a brand was in 2003 when after a survey we came to the conclusion that we should be thinking of brands for every product we make, and had our first campaign in 2005,” said Grigore Horoi, chairman of Agricola International, one of the largest meat industry businesses in the country, with more than 400 million lei (almost EUR100 million) revenue.
“The secret is constant communication, care for customers and services in store. Unhappy customers are customers who will badmouth you. Treat customers and suppliers with care and they will reward you,” said Catalin Ivan, marketing manager of DIY retailer Dedeman.
The company held by brothers Adrian and Dragos Paval in Bacau is the largest entrepreneurial company in Romania and posted EUR1.4 billion sales in 2017.
The newly established companies know how to use a brand and build a strategy, and the trend is to build `Made in Romania’ brands, says Adrian Docea, creative director with Heraldist & Wondermarks, a brand and innovation consultancy.
The brand is built through people who have experience in this field and companies are beginning to understand that an investment in a brand is a long-term investment, as the brand accounts for 50% of the success of a company, Docea added.
“When I came back to Romania I discovered how much innovative energy there was in IT companies,” Adrian Docea said.
Florin Rotaru, delivery director with ENEA, which makes technology for Boeing aircraft, American fighter jets or European satellites, in Romania, described the IT industry of Romania as a gold mine.
“We invest a great deal in people, quality and continue to develop the organizational flexibility that develops our business. We are sitting on a gold mine, IT is an example of using Romania’s potential, but there are others in other sectors, as well.”
(English version by Loredana Fratila-Cristescu)