Background

The Municipality of Montana is located on an area of 647.6 sq. km, which comprises 17.8% of Montana region. This is the biggest municipality in the region both by population and square kilometers. For the last decade businesses from the real economic sector operate in extremely unfavorable environment. Low consumption capability, limited export, and financial difficulties of manufacturers have led to the emergence of cheap work force, reduced production outputs and real estate transactions. Industries affected by the structural reform have made redundant many workers. At the beginning of January 2002 unemployment in Montana Municipality was 21,56 percent.

Practice

Taking into account that development in the region must employ all possible opportunities, local authorities in Montana have taken an active part in elaborating a pilot project Marketing strategy of Montana Municipality within the Danube River Initiative Program implemented by FLGR and USAID.

The main objective of the Marketing strategy is to present real time business opportunities in the region. Besides, the strategy will serve for analyzing, development and justification of strategies and tactics for maintaining and expanding of present businesses and attracting more investors. All information collected and its detailed analysis has helped in selecting priority industries and requirements for future investors.

The first step of the process was to form a good team of experts in economics, administration and information technologies the driving force in the project. Selected participants have attended a special training course for creation of marketing profiles, organized by the Foundation for Local Government Reform with an American consultant. The motto of the team is Business friendly local government .

The second step was to collect and organize a large amount of up-to-date information for Montana Municipality population, demographic features, infrastructure, economy, labour market, service sector, recreation and tourist sites, education, health system, culture and historical heritage. The accent here is on outlining data and records affecting the economy of Montana. The team has built strong co-operation with state institutions, NGO s and local business initiatives. Thus, the local society is aware of the project activity and its goals.

After creation of the database, a complete analysis has been made and the strategy profile has been finalized. SWOT and LOED analyses were carried out. Leading industries in the region have been identified electric plants and machinery construction. Research has started for identifying European and US companies in this area, as potential investors in the region. The list so far consists of more than 500 companies from all over the world. Only 300 are considered interesting and they would be carefully studied. There are many brochures printed and a website of the municipality has been created. It provides access to well organized information flow about potential investors. When contacting an investor a brochure package would be sent. Then they would be called by officers from the municipal administration and provided with additional information if necessary. Further on they would be invited for a visit. The marketing brochure of Montana Municipality Montana, Bulgaria where East meets West is organized in six chapters, each representing the main advantages of the municipality: strategic geography location; qualified work force available; local authority, supporting business development; high quality educational system; available transport network; Montana s small European city image. All materials in the brochures can be easily updated according to specific requirements.

A continuous monitoring and update process of the Marketing Strategy aiming at improving project results is planned.

Results

The expected results are establishment of new companies and attracting more strategic investors, development and expansion of the existing ones. Local community is expected to become more active and develop further. This is valid for enterprise initiative in most of the leading and supporting industries. Thus, citizens would be linked with the common problems, interests and long-term goals of local administration, leading to the raising of living standards. This practice is applicable and recommended for all municipalities in Bulgaria, regardless of their speifics population, level of development of economy etc.