Plan to advertise your business in Ukraine? Do not forget to offer a discount to the military!

Our colleagues from the Ukrainian office of Promocodius conducted a study that showed how the marketing strategies of Ukrainian businesses changed with the start of a full-scale war. We found the results so interesting that we decided to share them with our American audience. This material examines the phenomenon of the Ukrainian market, but many aspects of this experience can be useful for American business as well.

When the full-scale invasion began, many Ukrainian companies donated part of their income to support the army. Gradually, these mentions of donations began to appear on advertising banners, flyers and other promotional materials, instantly becoming a significant competitive advantage.

The results of an anonymous survey conducted by employees of our service in Ukraine show that including information about donations in advertising campaigns of brands not only increases audience loyalty but also encourages consumers to spend more: 

• 93% of respondents always prefer companies that support the Armed Forces,
• 83% are ready to try a new product or service if the organization supports the Armed Forces,
• 96% are ready to spend more than planned on goods or services of brands that support the Armed Forces.

It is interesting that this trend applies not only to Ukrainian companies but also to international brands. Many Ukrainians openly boycott the goods of companies that have not stopped working with the Russian market. An example of the scale of such boycott actions can be proved by the information scandals surrounding Philips, Bonduelle and PepsiCo.

Bonduelle, a French producer of frozen and canned vegetables, suffered a significant reputational blow by continuing to operate in Russia. The scandal arose after reports of the transfer of food kits to Russian soldiers in Ukraine, although the company denied these statements. Some Ukrainian supermarkets, including Varus, Novus, ATБ and Auchan Ukraine, have removed Bonduelle products from their shelves.

PepsiCo, despite announcing a halt to advertising and beverage production in Russia following the invasion of Ukraine, resumed production of some of its brands later in 2022, drawing criticism from Ukrainian authorities and the public. This decision of the company caused outrage among Ukrainian consumers, which led to a boycott of its products.

Philips, the Dutch electronics giant, was on the boycott list drawn up by the Minister of Foreign Affairs of Ukraine due to its continued operations in Russia. Although Philips said it was downsizing and discontinuing the supply of certain consumer products, its Russian online store continued to sell coffee makers, hair dryers and TVs. This fact also did not go unnoticed by Ukrainian activists, which further strengthened the boycott against the company.

Strategy for the future

Researching special offers for the military in Ukraine, we discovered a trend of transition from donations, when companies deduct a certain percentage of profits for the needs of the army, to personal discounts and bonuses for military personnel and their families.

This transformation initially involved mainly suppliers of military and sporting goods, electronics and medical services. However, over time, discounts and loyalty programs for the military began to appear in a wide variety of areas, from real estate to entertainment.

Interestingly, this approach not only expresses gratitude and demonstrates the consolidation of society, but also promises brands that choose this strategy, potential profits and a loyal paying audience.

Already today, military personnel and their families constitute a significant segment of the consumer market in Ukraine. According to data published in 2024, the strength of the armed forces of Ukraine is approximately 900,000 active troops and 1.2 million reservists. It is likely that as long as the war continues, the number of people directly or indirectly involved will only increase. Military personnel and their families form not just a large group, but a close-knit community, where the principle "attract one client and he will bring ten more" works extremely effectively.

Roughly estimating that the average monthly salary of an ordinary soldier is about 20,000 hryvnias, the total monthly purchasing power of approximately 900,000 active military personnel in Ukraine reaches 18 billion hryvnias. The annual figure exceeds 216 billion hryvnias, which emphasizes the significant economic role of this segment of consumers.

Impact on the economy:

1. High purchasing power: Thanks to these incomes, military personnel constitute an important segment of the market capable of supporting various sectors of the economy, from retail to services.
2. Business opportunities: The military's significant revenues create great opportunities for business development, especially in frontline areas and liberated territories.
3. Impact on the local economy: The military's solvency can be compared to the tourist season in some regions, which stimulates the development of local businesses.

Military personnel can support local businesses and promote economic development by creating opportunities for entrepreneurs and stimulating economic recovery in frontline areas.

According to the results of an anonymous survey conducted by our Ukrainian team, military personnel actively use discounts and loyalty programs, which significantly affects their commitment to brands. Let's take a closer look at these results and learn how discounts affect the purchasing behavior of military personnel and their families.

Active use of discounts and loyalty programs by the military:

• 95% of military personnel actively search for special discounts before purchasing.
• 73% prefer discounts on goods related to the military theme.
• 22% choose discounts on any goods not related to the military sphere.
• 4% do not look for discounts purposefully, but use them whenever possible.
• 1% ignore or refuse discounts completely.

The effect of discounts and special offers on brand loyalty of military personnel and their families:

• 67% of military personnel always prefer companies that offer military discounts.
• 43% are willing to try a new product or service if the company offers a special military discount.
• 96% more likely to return to a retailer that offers military-exclusive discounts.
• 76% are willing to spend more on goods or services from brands that offer military discounts.

American success story

Why can this experience be interesting for American business? Fortunately, we are not at war, but our military and veterans form a large, consolidated community. Research by SheerID and Military Times shows that the U.S. military is a high-value consumer group with $1 trillion in spending power. This is an extremely attractive audience, for whose attention it is worth competing.

According to a survey conducted by the US portal ID.me, military personnel and veterans actively search for military discounts online and often return to retailers, particularly important aspects include:

• Spend time searching for discounts: 95% of respondents said they spend time searching for exclusive military discounts before making an online purchase.
• Preference for discount retailers: 90% of respondents prefer to shop at retailers that offer special discounts for the military, compared to those that do not.
• Retailer loyalty: 96% of respondents are more likely to keep loyal and return to retailers that offer military-exclusive discounts.
• Association with patriotism: 95% of respondents believe that companies that offer military discounts are associated with patriotism or concern for veterans.
• Importance of discounts: 89% of respondents consider it an honor to receive such a discount.
• Active use of discounts: 97% of respondents took advantage of military discounts in the past year, with more than half using them at least once every two months.
• Planning to take advantage of discounts: 93% of veterans and 90% of active military personnel planned to take advantage of special military discounts on Veterans Day.
• Constant search for discounts: 56% of respondents are constantly looking for discounts on military goods.

Conclusion

Special discounts and offers for the military are not only a way to show gratitude but also an effective marketing strategy. The US experience shows that the military actively seeks discounts and remains loyal to brands that provide them. In Ukraine, where the military and their families make up a large part of the consumer market, such strategies can stimulate economic growth, especially in war-torn regions. Businesses that offer special conditions for the military can count on a stable and loyal segment of customers, thus contributing to the country's economic recovery.