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The main market on which the Company places its products is the Polish market. The Company has the strongest position in southern and central parts of the country which results from historical and geographical conditions. However, in the development strategy consistently undertaken by Śnieżka, including the development of a distribution network, cooperation with cross-regional wholesalers and chains of wholesalers, the Company is strengthening its position in all important economic centres across Poland. In the coming years the Company is going to redress the balance of its presence in particular local markets.
The Company mainly provides its products to the individual purchasers market. A much smaller number of products goes to industrial customers. In both cases, distribution takes place through indirect distribution channels (wholesalers, sub-wholesalers, plant warehouses, trading chains, and retail outlets). Particular distribution levels can service the same target groups, however businesses and institutions make purchases mainly in wholesales and sub-wholesales where the widest range of the Company products is offered.
The Company strategy is to successively acquire new sales markets. Currently, the Company exports its products mainly to East European countries (Ukraine, Belarus, Lithuania, Russia, Moldavia). The Company forecasts a further growth of its presence on current markets and extending sales markets to other countries.
Śnieżka is planning to increase its presence in West European countries. Although western markets are strongly satiated, export in this direction would allow the Company to protect itself from currency price changes in a natural way. Currently, Company products are sold in Slovakian and German markets, however further sales talks are being conducted in Western Europe.
Currently, the most important and prospective export market for Śnieżka is the Ukraine. Śnieżka has a strong position in the Ukrainian market, especially in western and southern parts of the country and in Kiev, however Company products are available in all regions of the Ukraine.
The Śnieżka brand is regarded as one of the most popular brands of emulsion products on this market. One of the characteristic features of the Ukrainian market is a considerable number of local manufacturers with a low level exploitation of production capacity, limited distribution abilities, and low quality of goods offered. The following brands are a considerable competition to Company products: DUFA and JOBI.
In July 2000 the Shareholders of Śnieżka together with their Ukrainian Trading Partners opened a production plant located in a special economic zone in Jaworowo in Ukraine (approximately 30 km from the Polish and Ukrainian border - Śnieżka UKRAINE I). For clarity of operation of the Group, the Shareholders of Śnieżka sold all shares in Śnieżka-UKRAINE I owned by them to the benefit of the Company.
Currently, the Company is systematically implementing its strategy of increasing its activity in foreign markets. The first production plant in Ukraine in Jaworowo, supplying the local market with water-soluble paints, was joined by a second plant in Wistowa, which manufactures solvent paints. Śnieżka also has a plant in Belorus. The Company has been selling its products on the distant Kazakhstan market for some time. Up until now Śnieżka only exported its products there, now it is seriously considering the possibility of starting up a production plant which could manufacture goods for the needs of the Kazakhstan market, as well as supply the markets of neighboring countries.
It is hard to estimate the values of Eastern European countries and prognoses of their development. However, the population and economic potential of these markets are worth highlighting, as well as important investment needs, and in particular those related to infrastructure development.
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