Less Developed Country the Kyrgyz Thesis

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There is no market for Internet sales.

Promotion

The promotion function is complicated by the nation's demographics. Promotion must be conducted in multiple languages. Promotions in Russian -- which is understood by all -- will not be respected by either the Kyrgyz or the Uzbeks. Ads strictly in Kyrgyz, on the other hand, will not attract the Russian audience as they will not understand them.

Promotions should feature either nationalist or ethnocentric motifs in order to gain the strongest consumer response. Emotion-centered promotion can be successful, rather than appeals featuring intellectual arguments.

There are limited media outlets, but those that do exist command a healthy market share. There are competing media from Russia and surrounding Central Asian states as well. Newspapers are popular, as is television. There is a radio presence. The online advertising market is in its infancy. Because of the limited size of the advertising industry, promotional budgets can be relatively low. It should be noted, though, that advertising is less effective in summer, when large amounts of the urban population are in the mountains and thus out of reach. The launch should not be conducted in summer.

The limitations of the advertising market mean that the most effective means of promotion is likely through the distribution network. Incentives to sales people and drivers of the distributor can motivate them to promote the new product, thereby bringing it to market. Combined with a small advertising presence, focus on the distribution side should be able to spur sales.

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Conclusion

The Kyrgyzstan market is not especially attractive, but for a firm looking to increase its involvement in Central Asia, it does offer some potential. Access to much larger nations such as China, Russia, Kazakhstan and Uzbekistan is good, and the nation has a strong history of embracing foreign direct investment. A factory in Kyrgyzstan would have access to around 40 million people within two days' drive.

Much of the country's business infrastructure is influenced by the Russian model. This means that there is a straightforward route to market and at least some rule of law. Transportation can be a challenge but the north of the country has the highest percentage of population and most of the nation's wealth.

Marketing is a challenge because of the patchwork of nationalities in the country, and the fact that each has strong nationalist sentiments. Appealing to one group's sentiments will turn other groups off of the product. Promotion should, however, choose an ethnic group with which to align, but keep the promotions light-hearted so as not to offend others. Media outlets are few, but they have good reach in the country.

Overall, the nation is stable and has a relatively open economy. The strong Russian influence remains in the business culture, although Kyrgyz clan politics add a unique local perspective. With the right strategies for market entry, however, it is possible to use Kyrgyzstan as a springboard to nearby markets.

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