Advertising As A Strategy

Advertising As A Strategy

ADVERTISING AS A STRATEGIC
ACTION. CASE OF BREWING INDUSTRY
IN UKRAINE
by
Yuliya Demyanyk
A thesis submitted in partial fulfillment of
the requirements for the degree of
Master of Arts
National University of Kyiv-Mohyla
Academy
2001
Approved by __________________________________________________
Chairperson of Supervisory Committee
_________________________________________________
_________________________________________________
_________________________________________________
Program Authorized
to Offer Degree_________________________________________________
Date _________________________________________________________
National University of Kyiv-Mohyla Academy
Abstract
ADVERTISING AS A STRATEGIC ACTION.
CASE OF BREWING INDUSTRY IN
UKRAINE
by Yuliya Demyanyk
Chairperson of the Supervisory Committee: Professor Serhiy Korablin
[Institute of Economic Forecasting at Academy of Sciences of Ukraine]
Advertising promotes sales of beer and increases producer’s share of market.
However, no firm is able to capture the whole market, as any increase in
advertising by a seller is usually offset by that of its rivals, leading to an allaround
increase of advertising. Such an increase in aggregate level of advertising
brings about two effects: an expansion of the market itself and a slight increase
in individual shares of the market. Theoretically, an increase in market share,
ceteris paribus, gives a producer some additional market power with an option to
influence price of a product. Nevertheless, this study shows that advertising does
not lead to increased shares of market in an amount sufficient to influence prices
of beer, so competitiveness is preserved.
TABLE OF CONTENTS
Table of Contents .......................................................................................................... i
List of Figures................................................................................................................ ii
List...