In this article, we will write about the specifics of marketing in Ukraine and what you need to know when drawing up a Ukrainian marketing strategy.

For the promotion of goods and services on the Ukrainian market, the following are of primary importance:

  • Marketing: from localized packaging to TV advertising.
  • The right choice of sales channels: physical store, online retail, omni- and multichannel sales.

Here you can get information about the main sales channels in Ukraine. Next, we would like to talk about marketing in Ukraine.

Localization of packaging is the first stage of marketing in Ukraine.

According to the Law of Ukraine “On Protection of Consumer Rights”, the marking (label) of goods must contain the following information in Ukrainian language:

  • trademark and full name of the product;
  • information about the main properties of the product, the characteristics of specific products;
  • data on the content of harmful substances;
  • complete information about the price, terms and conditions of purchase;
  • requirements for the conditions of storage and sale of goods;
  • terms of warranty service.

Supporting information may be in a foreign language, but the presence of a translation will improve the image of your products. According to statistics, about 63% of Ukrainians speak English on the middle level, but we do not recommend building marketing in Ukraine with the packaging or promotional materials in a foreign language. This will definitely reduce the conversion rate from visitors to buyers.

Ukrainian consumers prefer products of Western brands and trust Asian production to a lesser extent. The decline in sales of Russian goods is due to the high politicization of the population against the background of the military conflict between Russia and Ukraine.

Trade promotion and marketing in Ukraine.

Despite the prolonged economic crisis, political difficulties and the coronavirus epidemic in Ukraine, marketing agencies and communications are rapidly recovering.

The most listened to Ukrainian radio stations (according to the rating of the Independent Association of Broadcasters):

  • Hit FM;
  • Lux FM;
  • Radio Friday;
  • Russian radio;
  • Retro FM.

The most read Ukrainian magazines and newspapers:

  • Segondya;
  • Facts and comments;
  • Vesti;
  • Express;
  • Komsomolskaya Pravda Ukraine.

Rating of English-language magazines and newspapers in Ukraine:

  • Kiev Post;
  • Business Ukraine;
  • KyivWeekly;
  • What’sOn.

The most popular Ukrainian TV channels (according to the MediaBusiness Review rating):

  • Channel Ukraine
  • 1 + 1;
  • ICTV;
  • Inter;
  • STB.

Visiting exhibitions as a marketing tool in Ukraine.

Ukrainian exhibitions and trade shows are still an effective tool for promoting products and services to local partners and end-consumers.

The main organizers of the exhibitions in Ukraine:

  • International Exhibition Center
  • Euroindex;
  • PremierExpo;
  • Medwin;
  • ACCO International;

Here you can find a catalog of Ukrainian exhibitions.

Pricing and Marketing in Ukraine.

Pricing is a decisive factor in preparing a marketing strategy in Ukraine. However, there are differences in approach between the B2C and B2B sectors.

Ukrainian marketing and business for the consumer.

For the average Ukrainian consumer, price is a key factor in making a purchase decision. Price is followed by quality, durability and warranty conditions. As we wrote above, the country of origin of products and manufacturing companies is also of great importance, but this factor has a different meaning depending on the type of product.

When forming pricing, the supplier should take into account the level of income and purchasing power in Ukraine. According to the report of the State Statistics Committee of Ukraine, the average Ukrainian earns about 393 US dollars per month with an increase in salary of about 1.6% per year.

Preparing the pricing, the supplier should also take into account the regions in which potential consumers live, as well as their age. The younger generation creates a demand for more expensive products from Western brands. People after 55 years of age attach much more importance to the price of products. This is especially noticeable in the sales of electronics and household goods, automobiles, jewelry, personal care products and confectionery products.

You can get acquainted with the prices and range of products on the website, (in Ukrainian) and AllBiz (in English).

Ukrainian Marketing and Business-to-Business.

When buying equipment, Ukrainian companies first of all pay attention to quality, followed by reliability, efficiency, new technologies, after-sales service and training. This is especially noticeable in the field of pharmaceuticals, energy, agriculture, gas and oil, aviation, communications and information technology.

Pricing rules in Ukraine.

Pricing rules are governed by the Law of Ukraine “On Prices and Pricing”. Industry-specific price regulators include:

  • The National Energy and Utilities Regulatory Commission, which is the government regulator of energy and utility prices.
  • National Commission for State Regulation of Communications and Informatization, which regulates tariffs for communications services.

The Ukrainian government also controls the prices of medicines for the treatment of cardiovascular diseases, type II diabetes (oral medications) and asthma. For other goods and services, Ukrainian companies and individual entrepreneurs can set prices themselves.

Prices and value added tax (VAT) in Ukraine.

The most popular forms of ownership among Ukrainian enterprises:

  • individual private entrepreneurs;
  • limited liability companies;
  • joint stock companies.

Foreign exporters who cooperate with Ukrainian distributors for correct pricing in Ukraine should be aware that individual private entrepreneurs are exempt from paying the mandatory 20% VAT on goods resold to buyers. Exporters should also take into account that the price that the buyer pays for goods in retail and wholesale stores is already indicated with 20% VAT.

Joint stock companies and limited liability companies are required to include 20% VAT on the price of their goods or services. The possibility of selling through an individual private entrepreneur is limited by the maximum established gross income of the individual entrepreneur. For VAT purposes, three groups have been created in Ukraine with different limits on annual revenue:

  • Group I – up to USD 12,000;
  • Group II – up to USD 59,000;
  • Group III – up to US $ 196,000.

Limited liability companies and joint stock companies are not capped by an annual sales ceiling as they are required to include 20% VAT in the price.

Depending on the nature of the products and the expected annual sales, you can set a mandatory annual revenue ceiling by partnering with a team of several individual private entrepreneurs. In Ukraine, there are widespread companies that sell their products through dozens of sellers classified as individual private entrepreneurs.

After-sales service in Ukraine.

After-sales service standards in Ukraine are not as high as in Western countries. Usually, for the implementation of warranty service, Ukrainian distributors enter into an agreement with the repair shops.

At the same time, Ukrainian buyers consider warranty and after-sales service to be among the most important factors when making a purchase decision. In addition, Ukraine has strict consumer protection laws and consumers are widely aware of their rights.

According to Ukrainian law, suppliers of technically complex products are required to ensure that the product meets the specifications described in the product manual and provide warranty service for at least 6 months from the date of purchase. Consumers are entitled to free repairs during the warranty period. In addition, consumers are entitled to a complete replacement for defective products within 14 days of purchase. If the product is returned within 7 days of purchase, the buyer is entitled to request a full refund of the purchase price of the product. If the consumer has violated the operating instructions, the product is repaired at the expense of the consumer. The warranty period starts from the date of purchase.

The law of Ukraine refers to technically complex products:

  • Electrical household appliances;
  • Household radio and electronic appliances;
  • Personal communication devices;
  • Household and computing devices;
  • Musical instruments, including electric;
  • Mechanical devices including clocks, clocks and timers or stopwatches;
  • Household processing devices;
  • Any devices with a warranty;
  • Goods for exercise, sports or tourism;
  • Medical equipment;
  • Personal firearms with conventional or rubber bullets, tear gas pistols (PP), carbonate gas pistols (CP), ball bullet pistols (BB), air or spring pistols;
  • Household metering and regulation devices.

Medicines, pharmaceuticals and foodstuffs, personal care products, cosmetics and perfumes, sprays, underwear, books and other printed materials are not subject to mandatory exchange or refund requirements due to performance mismatches. The exchange can be made at the discretion and on the basis of the seller’s goodwill.

After-sales service for cars and other self-propelled devices is regulated by a separate law.