Super Vision International BusinessPIan Border Tube Lighting to Germany GulturalAnalysis ExecutiveSummary Introduction t. History and Politics of Germany Cultural History il. Geographical Setting i. Location ii. Climate iii. Topography ilt. Social Institutions i. Family ii, Education iii. Political System iv. Legal System v. Social Organizations vi. Business Customs and Practices tv. Religion V. Living Conditions i. Diet and Nutrition ii. Housing iii. Glothing iv, Recreation v. Social Security and Pension Systems vi. Health Gare vt. Language Dialects Appendixes. EconomicAnalysis ExecutiveSummary Introduction l. Population ll, Economic Statistics and Activity a. Gross Domestic Product (GDP) b. Personal Income Per Gapita c. Distribution of Wealth d. Primary IndigenousNatural Resources e" Surface Transportation f. Communication Systems g. Working Conditions h. Principal Industries i. Foreign Investment j. International Trade Statistics 1. Major Exports 2, Major lmports 3. Balance of Payments Situation 4, Exchange Rates K. Trade Restrictions L. Labor Force lll. Developments in Science and Technology a. Current TechnologyAvailable b. Technological Skills of the Labor Force and General Population lV. Channels of Distribution a. Intermediaries 1, Retailers 2. Wholesalers and Distributors 3. lmport and Export Agenb 4. Warehousing 5. Penetration of Urban and Rural Markets V. Media Appendixes. MarketAudit and CompetitiveAnalysis Executive Summary Introduction l. The Product a. Evaluation of Product as an Innovation i. Reliability Advantages ii. Compatibility with the Market Level of Technology iii. Complexity b. Major Problems with Products Acceptance in the Market ll. The Market a, The German Market i. Geographical Region ii. Forms of Transportation iii. Consumer Buying Habits iv. Distributions 1, Typical Outlets in which Products are Sold 2. Product Sales by Other Intermediaries v. Advertising and Promotion ,,1.Advertising Media 2, Customary Sales Promotions vi. Pricing Strategy 1, Customary Markups 2. Types of Discounts Available b. Gomparison and Contrast of the Competitors Products i. German Competitors ii. InternationalGompetitors iii. Domestic Competitors c. Market Size d. Government Participation in the Marketplace i. Agencies that Can help ii. Regulations Appendixes. The MarketingPlan Executive Summary l. The Marketlng Plan A. Marketing Objectives Target Market Expected Sales Profit Expectations Market Penetration and Coverage B. Product Adaptation Gore Gomponent PackagingComponent Support Services Component C. Promotion mix A. Advertising a. Objectives b. Media Mix c. The Message d. Costs . B. SalesPromotion C. PersonalSelling D. Distribution From Origin to Destination Port Selection Packaging Documentation InsuranceGlaims Freight Forwarder E. Ghannels of Distribution F. Price Determinationand Terms of Sale Gosts of the Shipment of Goods G. Terms of Sale H. Methods of Payment ll. Pro Forma Financial Statements Marketing Budget Advertising and Promotion Expense Distribution Expense lll. Resource Requirements Finances Personnel Production Capacity Appendixes. -is"'* f F* &/- Iy,1'*,*.,:r:jo* CULTURALANALYSIS Executive Summary The cultureof Germanyis very complexand rich. The Germanpeople are extremelyproud of their heritageand culture. Germanyhas had a very dynamic history. Today's unifiedGermany has its share of problemsmainly stemming from the reunification. The reunificationhappened after to the demise of the USSRand the end of the ColdWar. Germany is Europe'slargest and most populatedcountry. This country has produced some of the worlds finest in philosophy,music and physics. Germany is very proud of its culture. As illustratedby the fact that traditional food and dress is still very presenttoday. Germany is located in the heart of Europe. lt is bordered by Poland, the Netherlands,France, Switzerlandand Austria. The German climate is variableand changesduring differenttimes of the year. Familiesin Germanytend to consistof one or two parentsand childrenor simply two people living together. Traditionally,the man is the head of the household. Since more and more females are now in the workforcethe role of head of the household is shared. Many Germans live in apartments or condominiums. Educationis a very importantto the Germans. Their educationalstructure is similar to that of the United States. The main differenceis their university system,which usuallytakes about five to seven years to complete. In addition, universitiesare known not for their title but for specializingin a particularfield. The fiteracyrate in Germanyis 99%. The currentpolitical system in Germanyis a stableFederal Republic. The two parties that legislate over national issues are the Bundestag and the Bundesrat,The politicalparties that are activeinclude the Alliance,the Christian DemocraticUnion and the Free DemocraticParty just to name a few. The legat systemin Germanyis basedon the Grundgesetzof 1949. lt is a civillaw system that is similarto that of the UnitedStates. German life has a myriad of old traditionsthat have helpedto shape the culturaldevelopment of the country and their leisure activities. For instance, there is a strong love of food and wine that has grown over the years. Sports are also a favoritepastime of the Germans. Germanslove soccer,which they call fussball Businesscustoms and practicestend to be more formalthan those of the U.S. Germansaddress each other by their job academictitles and surnames. Punctualityis extremelyimportant when doing businesshere. A handshakeis the most common form of greeting. Germans avoid hype and exaggeration. AlthoughGerman is the officiallanguage, many businesstransactions are done using English. Businessdress is quite formal in comparisonto the business casualthat has taken over corporateArnerica. There is no state churchin Germanyand no controlof the churchesby the state. The relationship between church and state is that of a partnership regulatedby agreements. More than 55 million people belong to a Christian Church, mainly Roman Catholicor Protestant. The presenceof many workers from foreigncountries and their familieshas greatlyincreased the importanceof religiouscomm un ities. Germany'sfood and dress could be characterizedas safe and traditional. Germany used to be a meat and potatoes kind of country but times have changed. Breakfastis usuallycontinental, with rolls,jams and chesses. Lunchis the main meal of the day and dinner is usuallycold cuts and cheese. German fashion is distinguishedby a classic and clean style. At work, German people dress formallyand classic. When visitingthe area it is smart to wear traditional suitsand businessattire. Germany's social security plan and health care is one of the best in Europe. lt provides its citizens with pensions, health insurance, accident insurance,disability payments and supportfor the families of the unemployed. The broad network of social problems is taken for granted in Germany. The healthcare systemis mixedwith both socializedand private. Membershipof the statutoryhealth insurancesystem is obligatoryfor those employedwith a certain income. The government pays for the health care for the unemployedand welfare recipients. Benefitsare uniform, Introduction SuperVision International is a manufacturingcompany of highquality lighting productsbased out of Orlando,Florida. The companycurrently distributes productsfrom fiber optlc lightingsystems, to more recentlydeveloped border tube LED lightstrips used to illuminatebuildings and signs. The companiesproducts are currentlyused in swimmingpools, fountains, signs, billboards,wine racks,fine arts, landscape,channel letters, back-lit letters, fiber opticcurtains, decorative waterfalls, star ceilings,cove lightingand to outline buildings. Some of the more famousproject that the companyhas been a part of in the past includesthe largecoca cola sign in Times Square,and the famous Pepsiglobe sign in Venezuela. The productour analysisfocuses on is the LED BorderTube lightingproducts and how they can be distributedinto Germanyeffectively. l. History and Politics of Germany Becauseunderstanding political situation in Germanyis extremely importantto understandingthe societythe followingis a fairlybrief historyof the countriespolitics: Fromthe times of the Neanderthals,political events in the area that is now Germanyhave beenfiercely contested. The inhabitantsof the land had early connectionswith the Roman Legionsfrom 50 BC to the 5thcentury AD. Overtime powershifted from the Romansto Charlemagne(up to the early 9th century),and to Otto the Great's Holy Roman Empire(from late in the 1Othcentury). By the 13thcentury, when the Hapsburgfamily began their reign,the landswere littlemore than a conglomerateof Germanspeaking States. After the devastatingthirty years war and much religious conflict,Napoleon came throughin the early 19thcentury. After Prussiaconquered the Leipzigbattle in 1813,Napoleons control of the regioncame to an end. Overtime the Prussianchancellor and Kaiser unitedGermany for the firsttime. 9 KaiserWilhelm ll dismissedthe chancellorBismarck in 1890and led Germanyinto \ A/t/lwhere he disappearedto Hollandupon finding out that the war was not goingwell. Germanystruggled with civilunrest and a disastrouspeace, uniting only in dislikeof the reigningWeimar Republic.Then cameAdolf Hitler,an Austriandrifter and Germanarmy veteranwho was able to unitethe countriesfeeling of disaffectionfor the currentsituation. In 1933his NationalSocialist German Worker's (or Nazi)Party assumed ultimate authority over Germany.Extravagant