FEATURES OF MARKETING PRODUCT POLICY UNDER CRISIS CONDITIONS OF BUSINESS OPERATIONS

Abstract

The current work focuses on studying how medium-sized enterprises in the consumer goods sector adapt their product policy in response to external destabilizing phenomena, particularly in the conditions of the full-scale war in Ukraine, and to what extent these adaptations help mitigate their negative consequences. It is noted that the theoretical foundations of product policy are usually illustrated by the Ansoff Matrix, according to which growth strategies are categorized in relation to the interconnection between existing and new products and market environments; and by the Boston Consulting Group (BCG) Portfolio Matrix. It is emphasized that from an economic point of view, product policy is closely connected with the purchasing power of the target consumer audience and the high dynamics of demand for different product categories. From another perspective, a key characteristic of consumer behavior in crisis conditions, related to budget constraints, is the pronounced restraint in making purchases. The second fundamental problem lies in the increased pressure on liquidity costs. Limited financial resources entail a rethinking of plans to launch new product positions. It is stressed that a particular threat to income sustainability lies in the internal cannibalization of the assortment. However, despite the obvious advantages of strategic rationalization of the assortment during a period of economic turbulence, it was noted that this measure also involves a number of long-term risks. As an example of structuring marketing policy in the current study, the Ukrainian brand Kachorovska is considered, which is a family business specializing in the production of women’s shoes and accessories. Based on the experience of the Kachorovska brand’s adaptation and the general situational logic of the enterprise, companies in such a situation should continue and expand their internationalization strategy with a focus on the Ukrainian diaspora. In addition, given the situation, scenario planning makes sense, that is, the preparation of sequences of measures in case of further deterioration of the situation or economic recovery.