Marketing Plan

Marketing Plan

Miryana Petrova mirqna.petrova@gmail.com MK 388 International Marketing Tsvetelina Stoyanova Marketing Plan December 10, 2011

Marketing Plan The marketing plan has the purpose to give an overall insight for the profile of the selected country in which we decided to operate and to develop our trading and business operations. For the purposes of the Marketing plan we will divide the information into four parts with the corresponding to them elements and features. I. Cultural Analysis 1. Introduction Our company is concentrated on the production of traditional Bulgarian food products which fit perfectly in the category of organic products. In this case we chose to export one of our dairy products the buffalo milk and we intend to export it in Austria. Austria was of the

Austro- Hungarian Empire, being occupied for long years after the WWII, but since its entrance in European Union in 1995, Austria is claimed to be one of the most dynamically developed and prosperous countries with high standards of living and stable economy. 2. Location, geography, climate. Austria is located in the very heart of Europe, bordering with Slovenia, Slovakia, Switzerland, Germany, Hungary, Italy, Liechtenstein, and Czech Republic. It is one of the most preferable places for foreign investments because of its beneficial location, which makes the development of business operations within and outside the country a desired goal for many businessmen. Austria has relatively small area 83 871 sq km with no coastline, but mountain landscape in the south and in the west Alps and in other parts flat ground. The main river in Austria is the Danube. The climate is temperate with continental influences, it has cold winters and moderate summers (CIA,n.d). Recently Austria is facing some environmental issues due to air pollution, forest degradation and soil pollution. The capital city of Austria is Wien (Vienna). 3. Education, political system, legal system.

Marketing Plan The official language is the German and the literacy rate is 98% from population of 8 million. There is free compulsory public educational system lasting 9 years, the primary and secondary education is regulated by the State. Perfectly designed universities with rich history, traditions and modern practices are also available in Austria. The country is a federal republic divided into 9 states leaded by the president, the chancellor and the council of ministers. The legal system of the country is the civil legal system and it also incorporates the jurisdiction of the ICJ and ICC. The main judicial organ of the country is the Supreme Judicial Court. 4. Religion, living conditions, social organizations. The main religion in Austria is Catholicism and the main ethnic group is the Austrian one. Austrians are very proud people who value the traditions and history. The family has a

significant role in Austrian mentality, and all the family values are highly appreciated. Austrians are seen as conservative regarding the role of family members; however the role of the woman in the family is evolving and she is equivalent participant in the family budget. The family can be easily recognized as the core of the social system in Austria. II. Economic Analysis. Austrian economy is demonstrating stable indexes thanks to its location and it does strengthen trade relations with other giant economies like Germany. Austrias main industries with most contribution to the overall good state of its market economy are the service, industrial and agricultural sector. Even after the financial crisis, Austria managed to keep the growing trend of exporting its products and employ large percent of its citizens. Certainly, because of the constant interactions with other members of EU, Austria is proceeding to redesign and place more emphasis on fields like labor flexibility, unemployment and education. 1. Economic statistics, industries, trade partners. GDP Purchasing power parity for 2010 is estimated to be $332 billion which compared to the rest of the world gives Austria 36th place, which is a considerable indicator for the development

Marketing Plan

of Austrian economy. Another important index showing the high standards of its citizens is the GDP per capita - $40,400. The main contributor to the economy has the service sector with 67%, industry 27,5% concentrated in machinery production, construction, vehicles and part, lumber and wood, and agriculture with 6,5% producing mainly potatoes, grapes, wine, fruit, dairy products and cattle (CIA,n.d). Austrias export for the previous year were $147,5 billion consist of machinery and parts, vehicles, paper, metal goods, chemicals and directed mainly to Germany, Italy, Switzerland, and France. Respectively, the main imports partners are the same with the participation also of Netherlands, Austrias imports estimated to be $151, 7 billion. The foreign direct investment in Austria is also a significant index for the state of Austrian economy - $259, 4 billion for the last year. 2. Business practice, distribution, communication. One of the key values in Austria business practice is the social partnership based on the cooperation between employees, employers and the government and the will to satisfy the interests of each group. The business culture of Austrians can be characterized with loyalty and mutual responsibility between employers and employees. Other features of Austrians which are from great importance of the business are their punctuality, efficiency and order, their politeness and professional attitude are also immutable part of their business culture (Goldberg,2007) The distribution and logistics in Austria cannot be an issue for businessmen. The railway and roadway system is extremely well constructed and kept, as well as the aerial transport is highly used and modernized. All of the means of communication in Austria are working at efficient and effective rates from the telephone lines through the broadcast media to the internet connectivity. III. Competitive Market Analysis & Preliminary Marketing Plan 1. Evaluation of the product- relative advantage, compatibility, target market, competitors.

Marketing Plan Our product the buffalo yoghurt will be launched on a market which values the tradition and the quality. Our product will be new to the market but not an innovation; we will

fit to and concentrate on these cultural features we will introduce a product with high quality, with many traditions in its production, managed to keep the simplicity and the ways the buffalos have been bred in the mountains, fed with herbs and grass, which all combined lead to the perfect taste of naturalness and freshness which are nutritious and good for the health. From one small country with rich heritage like Bulgaria, we will carry over one such simple and natural product but with rich taste and features to another small in size country with many traditions Austria. Our product will be valued namely for these characteristics and will fit perfectly to the buying habits of Austrians. Our target will be large in range from 3 to 85 years old; our product is universal with its healthy features. On the food market and the market with fast moving products, especially in the sector of dairy products the market is extremely saturated and we will face furious competition from lots of brands. However, our unique selling point will be our exclusiveness in the way we produce the product, in its taste, and all the attributes it has as preservation of traditions and values. Our goal is to suggest to our customers to come back to their memories and to experience something new but aging centuries back by tasting our yoghurt. That is why we chose Austria as market, because we believe that our vision and companys culture coincide with the Austrian culture 2. The market- distribution, placement, pricing strategy, advertising. The major task we will have to take care of is the transportation issue, because our product expiration date is short, we will use the roadways and the aerial transport in order to execute the orders. Because of the high transportation cost, the cost of the product will raise dramatically. The packages will be from 250 grams and 500 grams and the corresponding prices will be 6 and 10 euro per package. The prices are little over the average prices of dairy products but the quality will correspond the price and our customers will value this. Our products will be

Marketing Plan placed in the traditional bakeries Backerei as supplement to the traditional pastry and breakfast that Austrians traditionally have every morning. In these bakeries, people going to work, people who just came to buy their breakfast will have the access to add something fresh and healthy to their favorite croissant. We aimed to implement our products exactly in the bakeries because the breakfast is the most important part of the nutrition for the day and

because Austrians really value this part of the day. Our advertisement will be placed only in the bakeries and further in the stores where we will also position our products, but as a start we will rely only on the small retailers and the customer will see the product at the point of purchase, we will not distract them with TV ads or campaigns, because the bakeries our customers go everyday are the most secure place and they know that everything that is made fresh, it is healthy and it is with high quality, so our product will fit perfectly in this environment and will supplement the breakfast.

Reference CIA. (n.d.). Europe:Austria. Retrieved December 10, 2011, from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/au.html

Marketing Plan Goldberg, S. (2007). Doing Business in Austria | Austrian Social and Business Culture. Retrieved December 10, 2011, from Communicaid:http://www.communicaid.com /access/pdf/library/culture/ doing-business-in/Doing%20Business%20in%20Austria.pdf