- “General Marketing Advice” for Canadian companies who want to enter to your assigned country.
In today’s business world, due to the strength of globalization, more and more companies decide to expand their business into foreign markets. However, this could be challenging. Succeeding in the current local market does not guarantee that the company will equally succeed in a new market using the same strategy. Before entering the foreign market, marketers must conduct research to gain extensive information on the consumers and the market framework of that country in order to choose the proper market entry strategy and formulate marketing plans. For Canadians companies that wish to expand their business into Austria, we would like to provide them with the following marketing insights to help them prepare their expansion.
Cultural Insights
When going from Canadian market to Austria market, the first and the most important thing to recognize is the cultural difference between these two groups of consumers. Companies must learn how to deal with that market’s particular culture since it helps to foster effective communication, understand what people value and how they behave. A country’s culture consists of language, religion, values and so on. To begin with, Canadian companies who want to expand to Austria must be aware of the language differences. Austria is the only country other than German where the official language is German and 98% of the population speaks this language (xxx, 2013). However, in recent years, Austria children start learning English at school from the age of seven (The Local, 2014). Although younger generations are proficient in English, those who are older (65 years and plus), which represents approximately 20% of the population (CIA The World Factbook, 2020), don’t master this language. Therefore, companies should prioritize the use of German in their product advertising in order to reach the maximum number of customers. To overcome the language barrier, it is essential for Canadian companies to hire specialists to design their advertisement to ensure that their message is appropriate and understandable to Austrians.
Very often, international companies will hire employees from the foreign country to deal with local activities while sending managers from the home country to lead and provide direction to these employees. In this case, these managers must respect the “business culture” of that country in order to work well with local employees. Compared to Canada, Austria has a mainly hierarchical business culture and there is a somewhat old-fashioned sense of politeness and courtesy (World Business Culture, n.d.). Senior managers hold most of the power within an organization and are responsible for making decisions. Not like in Canada, Austrian managers are expected to make decisions without consulting employee opinions. Employees are expected to follow instructions provided by their managers. In return, these instructions must be specific and direct (Expat, Arrival, n.d.). Canadian companies must take into account the difference in the business culture when selecting managers to send abroad. Managers who are chosen must be competent and expert in their field in order to be able to make good decisions.
Pricing
Pricing is a key element of a company’s marketing mix and
Products and services
- Key policy responses implemented during COVID-19
COVID-19 was reported to have spread to Austria on 25 February 2020, when two people returned from Italy and tested positive. Initial response from the government centred on travel restrictions and self-quarantine for people with symptoms, moving to bans on large public gatherings and incorporating online schooling. A nationwide lockdown was imposed in mid-March, which lasted until the economy gradually began reopening in mid-April.[1] The reopening process runs through to the end of June. Austria has implemented policy responses during the covid 19 pandemic in order to help people, small businesses and the economy.
Support Fund for Small Businesses
“The primary goal from the beginning was to ensure people’s health, to save jobs, and to make sure that the location came through the crisis as well as possible so that we could then start out again as quickly as possible. For this purpose, we have put a 38 billion protective shield over Austria that is already working” said Finance Minister Gernot Blümel at the press conference said on securing the location and jobs. The hardship fund has already begun. People can apply for funding in phase 1 to 1,000 euros, and in phase 2 up to 6,000 euros.
In addition to this emergency assistance, the Corona Assistance Fund has 15 billion euros to help all businesses that have significant drops in revenue. Help can be received from the Corona Support Fund as of April 8, 2020.[2] Depending on how affected the business enterprise is, a mortgage up to a quarterly turnover can be implemented for. Part of this loan then does not need to be repaid, namely up to 75% of the fixed charges and goods that have become worthless within the period.
The Corona Support Fund has two instruments: one is the guarantee instrument of a republic to secure working capital loans, representing 90 per cent of the value of the loan. The term is up to 5 years, which can be extended up to 5 years. The second method is the subsidy for businesses with profits falling by at least 40%.[3] This grant is the part for which the loan applied for does not have to be paid back any more. The fixed costs are also replaced, depending on the impact, to replace the spoiled goods by 25-75 per cent or not repayable any more.[4]Fixed costs include rent, electricity , gas, interest and perishable and seasonal goods, which, due to the corona crisis, lost at least 50 percent of their value.
The COVID-19 pandemic has introduced confusion and fear in all regions of Canada for small businesses and their employees. Such companies are at the heart of communities around the country and are a source of local job growth. Small companies are the strength of Canada’s economy, which is why a number of practical and measurable steps have been placed in place by the Government of Canada to help them maintain their workers, pay rent and access capital to cover costs.[5] Building on these steps, the new Regional Relief and Recovery Fund (RRRF) is spending approximately $962 million to support more companies and organisations in sectors such as manufacturing, telecommunications, tourism and other sectors that are important to the regions and local economies.
While some businesses are struggling in Austria, other businesses are thriving.[6] This refers to a range of Internet businesses, such as those related to online entertainment, food supply, online shopping and online education. The COVID-19 outbreak in many industries is likely to trigger bankruptcy for many well-known companies, as customers remain at home and economies are shut down. Other industries that are doing well are those related to healthcare and medication as well as herbs and vitamins. The COVID-19 outbreak is a unique opportunity to explore how markets are created and how they disappear within a very limited period of time.
- Opportunity Assessment for the specific product category (or industry) after COVID 19 pandemic
Bibliography
Austria. (2013, October 01). Retrieved from
https://businessculture.org/western-europe/business-culture-in-austria/
Entering the Market in Austria. (n.d.). Retrieved from
https://www.startupoverseas.co.uk/expanding-a-business-in-austria/entering-the-market.h
tml
Moshammer, H., Poteser, M., Lemmerer, K., Wallner, P., & Hutter, H. (2020). Time Course of COVID-19 Cases in Austria. International Journal of Environmental Research and Public Health, 17(9). https://doi.org/10.3390/ijerph17093270
Anonymous. (2020). COVID-19 solidarity fund. World Health Organization. Bulletin of the World Health Organization, 98(4), 235–235. http://search.proquest.com/docview/2386941204/
Hanns Moshammer, Michael Poteser, Kathrin Lemmerer, Peter Wallner, & Hans-Peter Hutter. (2020). Time Course of COVID-19 Cases in Austria. International Journal of Environmental Research and Public Health, 17(9). https://doi.org/10.3390/ijerph17093270
Ell, K., Foley, B., & Moin, D. (2020). COVID-19 Retail Store Closures. WWD, 8–11. http://search.proquest.com/docview/2394936357/
FINCA Canada Launches Emergency Fund in Response to the COVID-19 Pandemic. (2020). Medical Letter on the CDC & FDA.
Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284–289. https://doi.org/10.1016/j.jbusres.2020.06.008
[1] Moshammer, H., Poteser, M., Lemmerer, K., Wallner, P., & Hutter, H. (2020). Time Course of COVID-19 Cases in Austria. International Journal of Environmental Research and Public Health, 17(9). https://doi.org/10.3390/ijerph17093270
[2] Anonymous. (2020). COVID-19 solidarity fund. World Health Organization. Bulletin of the World Health Organization, 98(4), 235–235. http://search.proquest.com/docview/2386941204/
[3] Hanns Moshammer, Michael Poteser, Kathrin Lemmerer, Peter Wallner, & Hans-Peter Hutter. (2020). Time Course of COVID-19 Cases in Austria. International Journal of Environmental Research and Public Health, 17(9). https://doi.org/10.3390/ijerph17093270
[4] Ell, K., Foley, B., & Moin, D. (2020). COVID-19 Retail Store Closures. WWD, 8–11. http://search.proquest.com/docview/2394936357/
[5] FINCA Canada Launches Emergency Fund in Response to the COVID-19 Pandemic. (2020). Medical Letter on the CDC & FDA.
[6] Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284–289. https://doi.org/10.1016/j.jbusres.2020.06.008