This retrospective study provides evidence of the globalization of rapidly evolving consumer markets in CEE. The strong influence of Western multinationals in defining market structures has been documented. This information provides only a snapshot of the situation in selected consumer markets in the region. To get a more complete picture of the extent of market globalization, the market share of international brands can be complemented by data on purchasing and usage behavior. Klaus Hilleke Stephan A. Butscher, (1997) suggests that many brand manufacturers may be facing increasing competition from new competitors who are entering the market with extremely aggressive pricing. To counter this type of threat, branded manufacturers traditionally lower their prices or choose not to react to such attacks at all. Both strategies are suboptimal. A third alternative is to adopt a two-product strategy. This involves a second, lower-positioned product being added to any existing higher-positioned branded product, which then directly targets lower-priced competitors. An important aspect of this strategy is that both products are differentiated enough to ensure minimal cannibalization. This has been achieved