Abstract:

This study discusses the advantages and dangers of pioneering FMCG brands in new geographical markets, a subject so far neglected in the existing literature. Pioneering advantages have mostly been researched with product innovations in industrialised markets. This paper argues that pioneering new geographical markets bears different implications which justifies this study. The authors interviewed 23 top FMCG manufacturers across 12 industries in matched pairs in the markets of Poland, the Czech Republic and Hungary. The data was collected in in-depth interviews and analysed using a grounded theory approach. The main findings are that despite the belief of respondents, and much of the existing work, pioneering does not per se create any advantages over late entrants. The findings of this study furthermore indicate that the lead time between the entry of the pioneer and the follower plays a pivotal role in the value a pioneering advantage has for the company. Related to this is the fact that different lead time situations are conducive to different pioneering advantages. The paper also argues that pioneering advantages, if they can be achieved, need to be well managed and defended against followers to remain beneficial to the pioneer. To succeed in this, continued commitment and appropriate management skills are necessary.