AUSTRIA

G H PATEL INSTITUTE OF BUSINESS MANAGEMENT

SARDAR PATEL UNIVERSITY

SUBMITTED BY: SUBMITTED TO:

PRAVIN MEHTA Dr. D R DAVE
(15M31)
AUSTRIA
Ocial name: Republic of Austria
Capital: Vienna
Ocial 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 contact 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:
joint venture, licenses and whollyowned 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 joint venture with Bon
apptit 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 FRESH FOOD ITEMS
Baked pastries
Eilonde Roast
Sandwiches
Medium Roast
Flavored Coffee
Salads
Seasonal Favorites Oatmeal
Yogurt parfaits
HANDCRAFTED BEVERAGES Fruit cups
Fresh-brewed coffee
Hot and iced espresso beverages STARBUCKS ICE CREAM
Frappuccino coffee and non-coffee Super-premium coffee
blended beverages
Coffee-free flavors
Tazo teas
 PRODUCTS
READY-TO-DRINK CONSUMER PRODUCTS
Starbucks bottled Frappuccino
coffee drinks
Coffee and Tea
Starbucks Discoveries chilled Whole bean and ground
cup coffees
coffee,
MERCHANDISE Starbucks VIA Ready
Coffee- and tea-brewing Brew
equipment Tazo tea filter bags and
Mugs and accessories
tea latte concentrates
Packaged goods
Music
Books
Gift items
PRICING STRATEGY
PRICE SKIMMING
Premium Price for Premium 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 feedback from customers

PEOPLE
Social, positive attitude, active, skilled staff
 PROMOTIONAL MIX
ADVERTISING
Radio
TV
SALES PROMOTIONS
Billboards Return of incentive cards
Tie up with public relations
Loyalty program
PERSONAL SELLING Daily coffee break

Baristas continue to be the very HOLIDAY AD

best Holiday web site
Sample vans
Starbucks pays attractive Short Cups

incentive to retain and reward

baristas
 STARBUCKS IN MOVIES

THE DEVIL WEARS

PRADA

MEET THE FOCKERS

 Social media campaign

Starbucks iPhone app

QR Code scannerand 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 Australias cafe culture.
CAF 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 caf culture and the first to launch the coffee bar
concept in India with its first caf in Bangalore
Network strength: 1450+ cafs 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

Caf 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
Caf
Lounge
Square
COMBO PRICING
Clubbing up two or more products on
special occasions
PREMIUM PRICING
Adding things like cream,
chocolate sauce and positioning
as a premium coffees

VALUE BASED PRICING

Providing different variants in
terms 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
CAF COFFEE DAY STORE
Coffee parlours where people can enjoy the
coffee have eatables and hangout with friends
CAF COFFEE DAY LOUNGE
Premium caf from Caf coffee day target
selected group
CAF COFFEE DAY SQUARE
A unique Caf 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 Caf 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 feedback
Customer is assisted by the attendee or the brew
master in Lounge and Square
There is Self Service Counter for Caf Coffee Day outlets
in Offices / few Malls.