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Politics & Legal

Infrastructure and Geography

Culture

Economics

Competitive Strengths of Austria and Finland

Market potential assessment of

Portugal, Austria, Belgium and Finland

References

  • Buondi Café (2013) [Online]. Available from: http://www.buondicaffe.co.za/buondistory.html. Accessed: 21/11/13.
  • Coffee Geek (2013) Coffee: Portugal's Other National Drink [Online]. Available from: http://coffeegeek.com/opinions/cafestage/05-04-2006. Accessed: 21/11/13.
  • Delta Café (2013) [Online]. Available from: http://www.delta-cafes.com/#/en. Accessed: 21/11/13.
  • Douwe Egberts (2013) [Online]. Available from: http://www.douwe-egberts.co.uk/. Accessed: 21/11/13.
  • Euromonitor (2013) [Online]. Available from: http://www.euromonitor.com/. Accessed: 21/11/13.
  • Geographic.org (2013) [Online]. Available from: http://www.geographic.org. Accessed: 11/11/13.
  • Ghauri, P. & Cateora, P. (2005) International Marketing McGraw-Hill Education, New York.
  • Gustav Paulig Oy Ab (2013) [Online]. Available from: http://www.paulig.fi/en. Accessed: 21/11/13.
  • Heritage: Economic Freedom Rank (2013) [Online]. Available from: http://www.heritage.org/index/. Accessed: 21/11/13.
  • Johansson, J.K. (1997) Global Marketing, Foreign Entry, Local Marketing and Global Management, McGraw-Hill, Chicago, IL.
  • Meira Oy (2013) [Online]. Available from: http://www.paulig.fi/en. Accessed: 21/11/13.
  • Nestlé Belgilux (2013) [Online]. Available from: http://www.nestle.com/. Accessed: 21/11/13.
  • Photius (2013) [Online]. Available from: http://www.photius.com. Accessed: 11/11/13.
  • Reuters (2013) Cheaper Coffee Helps Egberts Take on Kraft [Online]. Available from: http://www.reuters.com/article/2012/06/26/us-saralee-coffee-idUSBRE85P0DC20120626. Accessed: 21/11/13.
  • Robertson, K. and Van, W. Wood (2001) The relative importance of types of information in the foreign market selection process International Business Review, Vol. 10, pp. 363–379.
  • World Bank (2013) [Online]. Available from: http://www.worldbank.org/. Accessed: 11/11/13.
  • Every Culture. (2010). Countries and their Cultures. Available: http://www.everyculture.com/Cr-Ga/Belguim.html. Last accessed 22nd Nov 2013.
  • Every Culture. (2010). Countries and their Cultures. Available: http://www.everyculture.com/Cr-Ga/Finland.html. Last accessed 22nd Nov 2013. Every Culture. (2010). Countries and their Cultures. Available: http://www.everyculture.com/Cr-Ga/Austria.html. Last accessed 22nd Nov 2013.
  • Europe-cities. (2012). Austria by Europe Cities. Available: http://www.europe-cities.com/en/648/austria/culture/. Last accessed 22nd Nov 2013.
  • Passport to trade. (2012).Social Media for Finland. Available: http://businessculture.org/northern-europe/finland/social-media-guide/. Last accessed 26th Nov 2013.
  • Ecco-Network. (2012). Social Media in Austria. Available: http://www.ecco-network.com/research/ecco-reports/country-reports/social-media-in-austria. Last accessed 26th Nov 2013.
  • Passport to trade. (2012). Social Media for Belgium. Available: http://businessculture.org/western-europe/belguim/social-media-guide/. Last accessed 26th Nov 2013.
  • Passport to trade. (2012). Social Media for Portugal. Available: http://businessculture.org/southern-europe/Portugal/social-media-guide/. Last accessed 26th Nov 2013.

Conclusion

Climate

Political Strength of Leadership

Extent of foreign governments use of incentives to encourage private business

Total Land Area (km2)

Source: The Economist

Contribution from the public sector as a % of GDP.

Micro factors:

  • Price
  • Positioning
  • Place
  • Product
  • Process

Macro Factors:

  • Unsaturated market
  • Tourism
  • Demand for high quality fast food
  • High Political strength

Legal

Consultants:

Economic Indicators Comparison

Barriers to trade

Charlotte Taroghion

Aoife Gordon

Stefani Yordanova

Nick Ansell

Pedro Barranco

Adam Nickelson

Finland:

Second best GNI – $46,940 (2012)

Second best FDI –$ 2,183,984 (2011)

Second highest employment to population – 55.3% (2011)

Austria:

Greatest GNI – $48,160 (2012)

Highest FDI – $10,466,740 (2011)

Highest employment to population – 58% (2011)

Portugal:

Lowest GNI – $20,580 (2012)

Third best FDI – $2,131,930 (2011)

Third highest employment to population – 54% (2011)

Belgium:

Third best GNI – $44,990 (2012)

Lowest FDI – $-20,677,380 (2011)

Lowest employment to population – 50.10% (2011)

Business Culture Background

Source: World Bank

Belgium:Saturated

Portugal: Saturated

  • 2 Predominant Local Competitors:
  • Dominated by internationally-owned companies.

1) Douwe Egberts – established since 1753 selling coffee, tea and tobacco. Market leader in the Belgian coffee market, and now launches an attack on coffee pad market leader (and trend setter) Nespresso.

2) Nestlé Belgilux – Selling Belgian brands – supply the only original Belgian coffee brand, Rombouts, accounted for only a small value share of 2% in 2012.  Global coffee market 5.9% just behind Kraft but Nestlé Belgilux is first at 22.8% coffee.

  • MNC – Starbucks.
  • Emphasis on quality – standard prices.

Food and Coffee Culture Background

  • 2 Predominant Local Competitors:
  • Speciality coffee retailers.

1)Delta Café – 1961 brand of coffee introduced, largest brand accounting for 48% market share. It is one of the most recognised brands in Portugal across all market sectors.

2) Buondi - Created by Montarroio Coffee Company in 1986 and was then bought by Nestlé in 1993. Passionate and bold coffee brand was roasted and packed at the Nestlé factory in Portugal.

  • MNCs – Starbucks and Costa – Costa won Barista of the year award in 2013.
  • Lower price bracket – e.g. average price for cup of coffee ranges between 0.40€ ($0.50 USD) to 0.60€, ($0.73 USD).

Finland: Moderately Saturated

Austria: Greatest Potential

  • 2 Predominant Local Competitors: Speciality coffee retailers.

1.Gustav Paulig Oy Ab - leads coffee, accounting for 51% off-trade value sales in 2012. Founded in 1876 and thus benefits from a long tradition in the country. Brands are well known and highly trusted.

2. Meira Oy, owned by Segafredo Zanetti SpA since 2002, ranked 2nd, taking 16% of value sales in 2012. Established in 1914 and thus also has excellent knowledge of coffee and well-known brands.

  • MNC - Starbucks.
  • Emphasis on quality – premium prices.

  • Vienna café culture consisting of many small coffee houses and shops = distributed market share since no dominant brands

  • More of an art and tradition rather than about being competitive as it is built on history in Vienna

  • MNC - Starbucks.

Social Media Culture

  • 59% of the Austrian population with Internet access is registered with and uses social networks on a regular basis. The use of social networks has grown by 12% in the last twelve months

  • Half of Finnish residents (49%) followed some social network service on the internet, according to Statistics. The use of social networks has grown by 12% in the last twelve months

  • More than 50% of the Portugals population uses the Internet and nearly all 78% of them use social media of some kind.

  • More than 80% of the Belgium population uses the Internet and nearly all (more than 90%) use social media

Aims

About Pret A Manger and Our Models

  • Provide an understanding of the 4 countries analysed (Portugal, Belgium, Finland and Austria) in order to…

  • Identify potential business opportunities within those countries to then…

  • Compare, analyse and critically evaluate the different factors that make a country suitable (or not suitable) for Pret’s investment and finally…

  • Present and explain our decision on which country would be best for Pret to invest in.

  • We will do all this by using…

Market Potential

Introduction & Background to Pret

Austria

Market Potential Indicators

  • First established in London in 1986 (Sinclair & Julian)

  • 335 Pret shops worldwide

  • £450 million annual revenue

  • “Good Natural Food”

  • Freshly prepared food every day using only fresh ingredients

  • Pret Foundation – Helping the Homeless

Export Environment Information Framework: Six key dimensions

Finland:

Ranked highest in Ease of Doing Business– 11th (2012)

Lowest costs to register a business– 1% (2012)

Third lowest profit tax– 15%

(2012)

Austria:

Ranked second best in Ease of Doing Business– 29th (2012)

Third lowest costs to register a business– 4.90% (2012)

Third lowest profit tax– 15%

(2012)

Source: Robertson, K. and Van, W. Wood (2001)

Portugal:

Ranked third best in Ease of Doing Business– 30th (2012)

Second lowest costs to register a business– 2.30% (2012)

Second lowest profit tax– 14.5% (2012)

Finland

Belgium:

Ranked last in Ease of Doing Business– 33rd (2012)

Highest costs to register a business– 5.20% (2012)

Lowest profit tax– 5.4% (2012)

Source: World Bank

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