Austria 1n6332

AUSTRIA G H PATEL INSTITUTE OF BUSINESS MANAGEMENT SARDAR PATEL UNIVERSITY

SUBMITTED BY:

SUBMITTED TO:

PRAVIN MEHTA

Dr. D R DAVE

(15M31)

AUSTRIA • Official name: Republic of Austria • Capital: Vienna • Official language: German • Government: Federal Parliamentary Republic • Independence: Post-‐WWII in 1955 • Currency : Euro ‘€’ • Population : 8.474 million (2013)

GEOGRAPHICAL FEATURES • Austria is a largely mountainous country due to its location in the Alps. • Of the total area of Austria (84000 km-square), only about a quarter can be considered low lying, only 32% of the country is below 500 meters.

ETHNIC GROUPS

RELIGION

AUSTRIAN SOCIETY & CULTURE AUSTRIAN FAMILY VALUES • The family forms the basis of the Austrian social structure. • The family is generally small and, due to lack of migration, generally closely knit within a certain town or village. • Weekends are generally devoted to family activities such as outdoor activities. • Eating dinner together in the evening is very much the norm. • Sundays are usually bookmarked for visiting grandparents for dinner.

THE AUSTRIAN HOME

• Austrians take much pride in their homes, keeping them neat and tidy. • Only close friends and relatives are invited into the house, so it is a place where more informal communication may occur. CONSERVATISM

• Austrians are generally conservative people. • They extend social invitations in advance of the event, and the more formal the occasion the greater the time between the invitation and the event itself, so that they can be certain that their guests do not have a prior engagement.

AUSTRIAN ETIQUETTE & CUSTOMS

ETIQUETTE IN AUSTRIA • Greetings are formal. • A quick, firm handshake is the traditional greeting. • Maintain eye during the greeting. • Some Austrian men, particularly those who are older, may kiss the hand of a female. • A male from another country should not kiss an Austrian woman's hand. • Titles are very important and denote respect. Use a person's title and their surname until invited to use their first name. • When entering a room, shake hands with everyone individually, including children.

GIFT GIVING ETIQUETTE • In general, Austrians exchange gifts with family and close friends at Christmas (generally Christmas Eve) and birthdays. • If invited to dinner at an Austrian's house, bring a small gift of consumables such as chocolates. • If giving flowers, always give an odd number, even numbers mean bad luck. • Gifts are usually opened when received.

BUSINESS ETIQUETTE AND PROTOCOL IN AUSTRIA RELATIONSHIPS & COMMUNICATION • First impressions are important and you will be judged on your clothing and demeanour. • Although Austrians prefer third-party introductions, they do not need a personal relationship in order to do business. • There is little joking or small talk in the office as they are serious and focused on accomplishing business objectives/goals. • Communication is formal and follows strict rules of protocol. • In many situations, Austrians will be direct to the point of bluntness. This is not an attempt to be rude, it is simply indicative of their desire to move the discussion along.

BUSINESS MEETING ETIQUETTE • Appointments are necessary and should be made 3 to 4 weeks in advance when meeting with private companies. • Punctuality is taken extremely seriously. If you expect to be delayed, telephone immediately and offer an explanation. • It is extremely rude to cancel a meeting at the last minute and it could ruin your business relationship. • Presentations should be accurate and precise. • Have back-up material and be prepared to defend everything: Austrians are meticulous about details.

STARBUCKS • Starbucks Corporation is an American coffee company and coffeehouse chain. • Starbucks was founded in Seattle, Washington in 1971. • As of November 2016, it operates 23,768 locations worldwide • Starbucks locations serve hot and cold drinks, whole-bean coffee, micro ground instant coffee known as VIA, espresso, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, pastries, and snacks including items such as chips and crackers • Starbucks began selling beer and wine at some US stores in 2010. • As of April 2012, it is available at seven locations and others have applied for licenses

ENTRY MODE STRATEGY • Starbucks adapts its international strategy in order to satisfy the needs and requirements of every market, seeking to respect its cultures and traditions. • At present, the company uses three different strategies: t venture, licenses and wholly–owned subsidiaries. • Before entering a new country Starbucks conducts rigorous quantitative market studies. The company also develops extensive focus group interviews to get a pulse of the marketplace and potential.

• In Austria, Starbucks chose t venture with Bon appétit Group as entry mode. • First of all, Starbucks lacked knowledge of the Spain market. Therefore, the coffee company needed to ally with a local partner who provided its knowledge and helped the company to operate locally. • As Starbucks wanted a fast internationalization process, the wholly-owned subsidiary strategy was unsuitable.

PRODUCTS COFFEE • Eilonde Roast • Medium Roast • Flavored Coffee • Seasonal Favorites HANDCRAFTED BEVERAGES • Fresh-brewed coffee • Hot and iced espresso beverages • Frappuccino coffee and non-coffee blended beverages • Tazo teas

FRESH FOOD ITEMS

• Baked pastries • Sandwiches • Salads • Oatmeal • Yogurt parfaits • Fruit cups STARBUCKS ICE CREAM

• Super- coffee • Coffee-free flavors

PRODUCTS READY-TO-DRINK • Starbucks bottled Frappuccino coffee drinks • Starbucks Discoveries chilled cup coffees MERCHANDISE • Coffee- and tea-brewing equipment • Mugs and accessories • Packaged goods • Music • Books • Gift items

• CONSUMER PRODUCTS • Coffee and Tea • Whole bean and ground coffee, • Starbucks VIA Ready Brew • Tazo tea filter bags and tea latte concentrates

PRICING STRATEGY PRICE SKIMMING • Price for Product • The pricing strategy takes advantage of behavioral tendency of people to purchase more expensive products on basis of high price – high value.

PLACE • Higher income group location place • Airports, malls, well-known areas • Highly visiting areas

PHYSICAL EVIDENCE • Warmth, Comfort, Diversity • Custom made cup of beverage. • Clean, friendly environment, cozy chairs, sofas • Alluring pastries menu, tempting coffee pictures

PROCESS • Quick service, customized cups with name • They collect suggestions and from customers

PEOPLE • Social, positive attitude, active, skilled staff

PROMOTIONAL MIX ADVERTISING • Radio • TV • Billboards PERSONAL SELLING • Baristas continue to be the very best • Starbucks pays attractive incentive to retain and reward baristas

SALES PROMOTIONS •

Return of incentive cards

•

Tie up with public relations

•

Loyalty program

•

Daily coffee break

HOLIDAY AD • • •

Holiday web site Sample vans Short Cups

STARBUCKS IN MOVIES • THE DEVIL WEARS PRADA

•

MEET THE FOCKERS

• Social media campaign • Starbucks iPhone app • QR Code scanner and start connecting the physical world to your mobile device • Gift card to start a relationship

STARBUCKS FAILURES • 2003: Starbucks closed all six of its locations in Israel due to difficult business environment • 2007: closed its store in Beijing's Forbidden City • 2008: closed 61 of its 84 stores in Australia: Starbucks failed to truly understand Australia’s cafe culture.

CAFÉ COFFEE DAY INTRODUCTION • Founded in 1996 • India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd • Strives to provide the best experience to their guests • Pioneer of the café culture and the first to launch the coffee bar concept in India with its first café in Bangalore • Network strength: 1450+ cafés in 172 cities/towns across India and growing • Outlets set up are based on the three formats - cafe, lounge and square.

ENTRY MODE STRATEGY • The cafe chain launched its first outlet in Vienna, Austria, in November 2005. • They are not taking the franchise route of expansion • The cafe chain own and manage the outlets themselves. The real estate is being leased out for a period of nine to 10 years. • Unlike its outlets in India, the ones in Austria are much bigger in size, however, the design, format and offerings are the same with a little bit of localisation.

• The outlets in Austria is spread across a minimum of 4,000 square feet. This is because the coffee culture there is much bigger and when you have to compete with over 400 cafes, visibility, variety and comfort becomes crucial to attract business • Café Coffee Day has projected themselves in the Austrian market as an international global brand and not as an Indian brand. And their differentiating factor is that they have employed for service a young team that has been hired locally.

PRODUCT

PRICING STRATEGY PSYCHOLOGY PRICING • Pricing the product as Rs 69, 79, 59 etc. rather than in the multiples of ten to give a feel that the product is less priced

LOCATION PRICING: On the basis of outlets, prices have been positioned • Café • Lounge • Square COMBO PRICING • Clubbing up two or more products on special occasions

PRICING • Adding things like cream, chocolate sauce and positioning as a coffees VALUE BASED PRICING • Providing different variants in of prices by altering the quantity to give a sense of affordability

PLACE • STRATEGICALLY LOCATED OUTLETS • Kiosks in offices • Coffee machines in college canteens • TYPES OF STORES CAFÉ COFFEE DAY STORE • Coffee parlours where people can enjoy the coffee have eatables and hangout with friends CAFÉ COFFEE DAY LOUNGE • café from Café coffee day target selected group CAFÉ COFFEE DAY SQUARE • A unique Café where variety of single origin coffee brews from coffee-growing countries are available

PROMOTION • Started TVC and Print campaign at the end of 2012  • Co Branding in Movie and TV serials • Sales Promotion Activities • Combo Deal • Happy Hours • Privilege cards • Redeemable coupons • Through Interactive Media • Held Contest around a Very Popular Programme • Tie up with lots of youth brands

PHYSICAL EVIDENCE • AMBIENCE • Different ambience, look and feel for different outlets

• SHOP COLOUR  • Violet for Café coffee day shops • Sea green for Lounge • Brown for Square

PEOPLE • Dressed in a particular uniform • Soft spoken, friendly behaviour • Customer Engagement Activities

PROCESS • It takes Minimum Response Time • Complaints and • Customer is assisted by the attendee or the brew master in Lounge and Square • There is Self Service Counter for Café Coffee Day outlets in Offices / few Malls.